WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION IS READYING LEGAL ACTION AGAINST THE US SUBSIDIARIES OF JAPAN'S BIG FOUR BROKERAGE HOUSES FOR VARIOUS ALLEGED SECURITIESLAW VIOLATIONS INCLUDING THE USE OF UNLICENSED BROKERS ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THE ANTICIPATED SEC ENFORCEMENT PACKAGE IS EXPECTED TO INCLUDE CHARGES AGAINST DAIWA SECURITIES AMERICA INC STEMMING FROM ITS ROLE IN THE SALOMON BROTHERS INC TREASURY BOND SCANDAL AS REPORTED DAIWA HAS ACKNOWLEDGED BEING THE UNNAMED FIRM CITED BY THE SEC AS HAVING PURCHASED TREASURY SECURITIES FOR SALOMON IN 1989 IN VIOLATION OF GOVERNMENT RULES THE SEC ALLEGED THAT ALL FOUR FIRMS USED UNLICENSED BROKERS ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THE SEC ISN'T EXPECTED TO TAKE ANY ACTION REGARDING A MATTER THAT INITIALLY SPARKED ITS INTEREST IN THE JAPANESE FIRMSSOCALLED LOSS REIMBURSEMENT PRACTICES WHERE FAVORED CLIENTS WERE REPAID BY THE FIRMS AFTER POSTING SECURITIES LOSSES THE COMMISSION REPORTEDLY DIDN'T FIND THAT THE FIRMS ENGAGED IN SUCH PRACTICES IN THE US INDIVIDUALS FAMILIAR WITH THE MATTER SAID AN ENFORCEMENT PACKAGE HAS BEEN ASSEMBLED BY THE SEC STAFF AND IS AWAITING THE DOTTING OF I'S AND THE CROSSING OF T'S AND FORMAL ACTION BY THE FULL COMMISSION THEY SAID SETTLEMENTS ARE EXPECTED EARLY THIS YEAR BETWEEN THE SEC AND EACH OF THE FIRMS FINES OF VARYING SIZES ARE ANTICIPATED THE SEC WOULD NEITHER CONFIRM NOR DENY ANY IMPENDING ENFORCEMENT ACTION AGAINST THE US SUBSIDIARIES OF THE BIG FOUR JAPANESE FIRMS DAIWA A UNIT OF DAIWA SECURITIES CO NOMURA SECURITIES INTERNATIONAL AMERICA INC A UNIT OF NOMURA SECURITIES CO NIKKO SECURITIES CO INTERNATIONAL INC A UNIT OF NIKKO SECURITIES CO AND YAMAICHI INTERNATIONAL INC A UNIT OF YAMAICHI SECURITIES CO THE PENDING SEC ACTION WAS REPORTED EARLIER BY THE JAPANESE NEWSPAPER NIHON KEIZAI SHIMBUN A LAWYER FOR DAIWA DECLINED TO COMMENT A NIKKO ATTORNEY C EVAN STEWART SAID ANY MATTER INVOLVING NIKKO AND THE SEC IS PRIVATE BUT STATED THAT IT WOULD BE INACCURATE TO REPORT THAT NIKKO HAS AGREED TO ANY SETTLEMENT WITH THE SEC OR HAS AGREED TO PAY ANY FINE A NOMURA SPOKESMAN DECLINED TO COMMENT AND REFERRED ALL QUESTIONS TO THE SEC A YAMAICHI LAWYER HAD NO COMMENT SEC OFFICIALS WHILE DECLINING TO COMMENT ON ANY PENDING ACTIONS SAID THEY KNOW OF NO INSTANCE TO DATE WHERE THE SEC HAS TAKEN ENFORCEMENT ACTION AGAINST ANY JAPANESE FINANCIAL INSTITUTIONS THE ANTICIPATED SETTLEMENT IS EXPECTED TO FEATURE FINES RANGING FROM 50000 IN THE CASE OF NOMURA TO A REPORTED 1 MILLION IN THE CASE OF NIKKO THE JAPANESE PRESS ACCOUNT SAID DAIWA FACES A FINE OF AROUND 300000 AND YAMAICHI OF ABOUT 200000 SEC ENFORCEMENT ACTION AGAINST DAIWA HAS BEEN AWAITED FOR MONTHS ACCORDING TO THE SEC'S COMPLAINT AGAINST SALOMON BROTHERS PAUL MOZER THEN SALOMON'S HEAD BOND TRADER IN 1989 ASKED A TRADER AT ANOTHER FIRM TO PLACE A BID FOR 3 BILLION IN TREASURY SECURITIES ON BEHALF OF SALOMON THE OTHER FIRM DAIWA BID FOR 35 BILLION IN ITS OWN NAME WITHOUT DISCLOSING ON ITS TENDER FORM THAT 3 BILLION OF THAT AMOUNT WAS FOR SALOMON AND FALSELY STATING ON THE FORM THAT IT WAS THE BIDDER FOR THE ENTIRE 35 BILLION THE SEC SAID DAIWA WHICH MADE A PROFIT ON THE TRANSACTION DISCLOSED ITS ACTION TO THE SEC AFTER THE SALOMON FLAP ERUPTED 9301040044 930104 YEAREND REVIEW OF UNDERWRITING INVESTMENT BANKS POCKET 676 BILLION IN FEES BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALL STREET INVESTMENT BANKS POCKETED A RECORD 676 BILLION IN UNDERWRITING FEES IN 1992 PROPELLING THE SECURITIES INDUSTRY TO ITS MOST PROFITABLE YEAR EVER LAST YEAR'S UNDERWRITING FEE LEVEL EASILY ECLIPSED THE PRIOR RECORD OF 507 BILLION SET IN 1986 ACCORDING TO SECURITIES DATA CO AND IS 45 HIGHER THAN 1991'S LEVEL WALL STREET EARN FEES BY BUYING NEW SECURITIES FROM CORPORATE ISSUERS AND RESELLING THEM TO THE PUBLIC AT A MARKUP IN REAL ESTATE IT'S LOCATION LOCATION LOCATION IN UNDERWRITING FEES IT'S VOLUME VOLUME VOLUME SAYS MICHAEL D MADDEN COHEAD OF INVESTMENT BANKING AT THE LEHMAN BROTHERS DIVISION OF SHEARSON LEHMAN BROTHERS INC EVERYBODY ENJOYED A RECORD EQUITYUNDERWRITING YEAR AND THAT TRANSLATED INTO RECORD FEES THIS FEE EXPLOSION HELPED TO BOOST BROKERAGE FIRMS TO RECORD PROFITS IN 1992 ANALYSTS SAY AMID THE BOOM IN STOCK AND BOND UNDERWRITING AND TRADING WALL STREET SECURITIES FIRMS EARNED RECORD PRETAX PROFITS TOTALING AS MUCH AS 7 BILLION IN 1992 ACCORDING TO ESTIMATES FROM THE SECURITIES INDUSTRY ASSOCIATION A TRADE GROUP THAT IS 20 HIGHER THAN THE PRIOR PROFIT RECORD SET IN 1991 MERRILL SNARED THE NO 1 SPOT IN UNDERWRITINGFEE RACE FOR THE FIFTH STRAIGHT YEAR THE FEE TABLE PROVIDES THE BEST GAUGE TO HOW MUCH WALL STREET INVESTMENT BANKS GENERATE FROM UNDERWRITING NEW STOCKS AND BONDS SEE ACCOMPANYING TABLE WSJ JANUARY 4 1993 BUT THE RANKINGS DON'T NECESSARILY CORRELATE WITH THE ACTUAL PROFITS EARNED FROM UNDERWRITING AMONG SECURITIES FIRMS INVESTMENT BANKERS SAY THE NUMBERS REFLECT ONLY DISCLOSED FEES ON MANY DEALS PARTICULARLY MORTGAGEBACKED AND DERIVATIVES TRANSACTIONS FEES AREN'T FULLY SHOWN FULL CREDIT FOR FEES IS GIVEN TO THE LEAD MANAGER IN AN UNDERWRITING SYNDICATE BUT IN REALITY THOSE FEES TYPICALLY ARE SPREAD AMONG SEVERAL INVESTMENT BANKS IN THE DEAL THIS TYPICALLY TRANSLATES INTO LEAD MANAGERS KEEPING ABOUT 50 OF THE UNDERWRITING FEE WITH THE COMANAGERS SHARING THE REST INVESTMENT BANKERS SAY MOREOVER LEAD MANAGERS END UP KEEPING ONLY PART OF THE FEE ABOUT 60 OF AN UNDERWRITING FEE GOES TO THE FIRM'S OPERATING PROFIT BEFORE TAXES AND BONUSES THE OTHER 40 TYPICALLY IS EATEN UP BY LEGAL ADMINISTRATIVE AND SALES EXPENSES THE BANKERS SAY STOCK TRANSACTIONS OFTEN ARE ABOUT 10 TIMES AS PROFITABLE AS THE TYPICAL BOND DEAL INVESTMENT BANKERS SAY INDEED WALL STREET FIRMS TYPICALLY HAVE TO MANAGE AS MUCH AS 150 BILLION OF BOND UNDERWRITINGS TO GENERATE 100 MILLION OF REVENUE SAY INVESTMENT BANKERS 9301040043 930104 PEPPERELL'S 3RDPERIOD LOSS AMOUNTS TO 1796 MILLION WEST POINT GA AP WEST POINTPEPPERELL REPORTED A THIRDQUARTER LOSS OF 1796 MILLION OR 608 A SHARE REFLECTING ACCOUNTING CHANGES MANDATED BY A BANKRUPTCYCOURT REORGANIZATION OF THE TEXTILE COMPANY THE RESULTS COMPARED WITH PROFIT OF 25 MILLION OR NINE CENTS A SHARE IN THE YEARAGO QUARTER CHICAGO INVESTOR WILLIAM FARLEY WHO ACQUIRED MOST OF PEPPERELL IN A 1989 DEBTFINANCED BUYOUT LEFT THE COMPANY IN SEPTEMBER UNDER A CHAPTER 11 RESTRUCTURING THAT PUT THE COMPANY UNDER THE OWNERSHIP OF VALLEY FASHIONS CORP MR FARLEY HAD EARLIER LOST HIS FINANCIAL STAKE BUT REMAINED AS CHIEF EXECUTIVE ACCOUNTING RULES REQUIRED THE COMPANY TO INCLUDE REORGANIZATION COSTS OF 2239 MILLION IN THE THIRD QUARTER PEPPERELL SAID SALES FOR THE QUARTER WERE 3722 MILLION DOWN 59 FROM THE YEAREARLIER PERIOD NOT INCLUDING THE SPECIAL CHARGES OPERATING EARNINGS FOR THE QUARTER INCREASED TO 928 MILLION COMPARED WITH 553 MILLION IN THE SAME PERIOD IN 1991 THE COMPANY SAID WEST POINTPEPPERELL'S OPERATING PERFORMANCE IS STRONG AS OUR RESULTS INDICATE SAID CHAIRMAN HOLCOMBE T GREEN JR MR GREEN SAID THE LOWER THIRDQUARTER SALES RESULTED FROM TIGHTER INVENTORY MANAGEMENT BY RETAILERS AND THE ABSENCE OF LARGE SALES OF IRREGULAR MERCHANDISE HE PREDICTED VERY SATISFACTORY RESULTS FOR THE FULL YEAR 9301040042 930104 PUBLICLY TRADED FUNDS FOLLOWING IS A WEEKLY LISTING OF UNAUDITED NET ASSET VALUES OF PUBLICLY TRADED INVESTMENT FUND SHARES REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE ALSO SHOWN IS THE CLOSING LISTED MARKET PRICE OR A DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE 9301040041 930104 LAW LEGAL BEAT EMAIL ARCHIVES PROVIDE WINDFALL FOR LAWYERS SEEKING EVIDENCE BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL ELECTRONIC MAIL MAY MEAN EFFICIENCY FOR BUSINESSES THAT USE IT BUT IT ALSO MEANS A NEW AND RICH SOURCE OF EVIDENCE FOR LAWYERS SUING THOSE COMPANIES ATTORNEYS ARE JOINING FORCES WITH COMPUTER PROGRAMMERS TO DIG UP OLD LOST AND EVEN DELETED ELECTRONIC MISSIVES THAT OFTEN ARE MORE DAMAGING THAN ANY PAPER MEMO COULD BE PEOPLE WILL SAY IN EMAIL THINGS THEY WOULD NEVER SAY IN A LETTER SAID ANDREW JOHNSONLAIRD A PROGRAMMER IN PORTLAND ORE WHO HELPS LAWYERS FIND EVIDENCE IN EMAIL WHICH IS SENT THROUGH COMPUTER NETWORKS THEY RECORD THEIR THOUGHTS IN AN UNCENSORED WAY LAWYERS NEVER KNOWN AS COMPUTERSAVVY ARE JUST BEGINNING TO TURN TO EMAIL IN PRETRIAL FACTFINDING MANEUVERS THE TACTIC IS MOST COMMON IN CALIFORNIA'S SILICON VALLEY WHERE ELECTRONIC MAIL HAS BEEN A MAINSTAY FOR DECADES WHEN I DO A TRADESECRECY CASE I ALWAYS REQUEST A SEARCH OF EMAIL AND ANY COMPUTER BACKUP SYSTEM SAID PHILIP P BERELSON AN ATTORNEY IN THE PALO ALTO CALIF OFFICE OF BROWN & BAIN HE NOTED THAT WHERE THERE IS A PAPER TRAIL THERE USUALLY WAS A MORE EXTENSIVE ELECTRONIC TRAIL FIRST COURTS GENERALLY TREAT THE ELECTRONIC MESSAGES THE SAME WAY THEY TREAT LETTERS AND MEMOS LAWYERS CAN GET THEIR HANDS ON THE MESSAGES OR EVEN THE COMPUTER ITSELF IF A COURT AGREES THAT THEY SEEM RELEVANT TO THE CASE ATTORNEYS OFTEN START BY READING A PRINTOUT OF RECENT MESSAGES WHICH COMPUTERS SAVE IN CASE OF A SYSTEM COLLAPSE MICHAEL A JACOBS AN ATTORNEY WITH THE SAN FRANCISCO LAW FIRM MORRISON & FOERSTER RECENTLY DEMANDED SUCH A PRINTOUT IN A CASE IN WHICH A WITNESS DENIED BEING AT A MEETING EMAIL MESSAGES SHOWED THAT THE PERSON ACTUALLY HAD SUMMARIZED THE MEETING FOR OTHERS WHO MISSED IT HE HAD FORGOTTEN ABOUT IT AND WAS PRETTY SURPRISED MR JACOBS SAID THE LARGEST COMPUTER SYSTEMS CAN SAVE EMAIL MESSAGES FOR YEARS MOST SYSTEMS KEEP THEM AT LEAST SEVERAL DAYS AS FORMER BORLAND INTERNATIONAL INC EXECUTIVE EUGENE WANG LEARNED IN SEPTEMBER WHEN MR WANG DEFECTED FROM BORLAND HE ALLEGEDLY SENT A SERIES OF EMAIL MESSAGES TO RIVAL SOFTWARE MAKER SYMANTEC CORP BUT THE MESSAGES WERE SENT THROUGH MCI MAIL AN ELECTRONICMAIL NETWORK OWNED BY MCI COMMUNICATIONS CORP THAT KEEPS MESSAGES FOR FIVE DAYS BORLAND EXECUTIVES EASILY FOUND THE MESSAGES AND ARE USING THEM IN A CIVIL SUIT ALLEGING THAT MR WANG SLIPPED MARKETING PLANS TO THE COMPETITION IN ADDITION POLICE IN SCOTTS VALLEY CALIF WHERE BORLAND IS BASED ARE INVESTIGATING MR WANG NOW AN EXECUTIVE VICE PRESIDENT AT SYMANTEC OF CUPERTINO CALIF WOULDN'T COMMENT BUT A SYMANTEC SPOKESMAN SAID THE COMPANY IS COOPERATING WITH INVESTIGATORS AND BELIEVES THE ALLEGATIONS ARE WITHOUT MERIT BESIDES PICKING THROUGH RECENT MESSAGES LAWYERS ARE HIRING COMPUTER WIZARDS TO FIND INFORMATION THAT LURKS OFTEN WITHOUT MOST EXECUTIVES' KNOWLEDGE IN THE CREVICES OF A MACHINE'S MEMORY RECENTLY FOR INSTANCE A PROGRAMMER HIRED BY A SEATTLE LAW FIRM FOUND UNDELETED EMAIL CONTAINING SLURS BY A LOCAL PUBLISHINGHOUSE PRESIDENT AGAINST AN EMPLOYEE THE WORKER WHO HAD BEEN FIRED WON A 250000 SETTLEMENT IN A DISCRIMINATION LAWSUIT TO THE SURPRISE OF MANY DEFENDANTS EVEN DELETED INFORMATION CAN BE RESURRECTED TELLING A COMPUTER TO DELETE SOMETHING IS THE SAME AS SAYING TO IT IT'S OK TO OVERWRITE THIS BUT THE COMPUTER MIGHT NOT DO SO FOR YEARS AND THEN MIGHT OVERWRITE ONLY PARTS OF THE INFORMATION UNTIL IT IS OVERWRITTEN THE DELETED INFORMATION ACTUALLY REMAINS IN THE COMPUTER AND CAN BE RETRIEVED BY PROGRAMMERS THE BESTKNOWN EXAMPLE OF THIS FEAT CAME IN THE OLIVER NORTH PROSECUTION IN WHICH INVESTIGATORS GOT HOLD OF EMAIL MESSAGES THAT MR NORTH HAD DELETED MR NORTH USED INTERNATIONAL BUSINESS MACHINES CORP'S PROFS EMAIL SYSTEM WHICH ALSO MADE AUTOMATIC BACKUP COPIES OF ALL HIS MESSAGES LAWYERS WHO EXCAVATE SUCH MESSAGES CAN GET AN EXTRA WINDFALL FROM THE FRANK LANGUAGE OFTEN USED IN EMAIL JOHN H JESSEN A SEATTLE PROGRAMMER WHO SPECIALIZES IN WORKING WITH ATTORNEYS RECALLS A TRADESECRET CASE EARLIER THIS YEAR IN WHICH TWO ENGINEERS EXCHANGED MESSAGES ABOUT HOW THEIR COMPUTERACCESSORY COMPANY REALLY SCREWED A RIVAL I DON'T KNOW HOW MUCH OUR PRODUCT COPIED FROM THEIRS BUT IT MUST BE A LOT ONE ENGINEER WROTE BUT THE SAME EXAMPLE ALSO ILLUSTRATES THE PITFALLS OF RELYING ON EMAIL FOR EVIDENCE LAWYERS ON BOTH SIDES EVENTUALLY AGREED THAT THE ENGINEERS WERE MERELY GOSSIPING AND WERE WRONG THE CASE WAS SETTLED OUT OF COURT FOR AN UNDISCLOSED AMOUNT EMAIL ALSO CAN BE VULNERABLE TO TAMPERING ON SOME COMPUTERS FOR INSTANCE IT ISN'T HARD TO FALSIFY A MESSAGE'S TIME AND DATE MR JOHNSONLAIRD THE PORTLAND PROGRAMMER RECALLS A TRADESECRET CASE IN 1991 IN WHICH AN EMPLOYEE LEFT A COMPANY AND STARTED A COMPETING BUSINESS ALLEGEDLY USING STOLEN INFORMATION MR JOHNSONLAIRD FOUND A DAMNING PIECE OF EMAIL BUT THEN REALIZED IT WAS MISSING A TIME AND DATE THE MESSAGE EITHER WAS BOGUS OR NEVER WAS SENT PEOPLE TEND TO PUT A LOT OF CREDIBILITY ON EMAIL BECAUSE IT'S COMPUTERBASED BUT ALL IS NOT WHAT IT SEEMS MR JOHNSONLAIRD SAID THE CASE WAS SETTLED OUT OF COURT AND MR JOHNSONLAIRD NEVER DETERMINED WHETHER THE MESSAGE WAS REAL BUSINESSES GENERALLY HAVEN'T RESPONDED TO THE LEGAL RISKS POSED BY STORED ELECTRONIC MESSAGES OR BY LOOSELIPPED MESSAGE WRITERS AT MOST SOME COMPANIES STIPULATE THAT ELECTRONIC MAIL SHOULD BE USED FOR BUSINESS PURPOSES DISCOURAGING PERSONAL MESSAGES THAT MIGHT BE HELD AGAINST A COMPANY LATER BUT PROGRAMMERS SAY COMPANIES CAN CUT THE ODDS OF SEEING THEIR EMAIL BECOME EXHIBIT A IN A LAWSUIT FIRST EXECUTIVES SHOULD KNOW EVERY PLACE WHERE INFORMATION COULD POSSIBLY BE STORED ON COMPANY COMPUTERS OUTSIDE SPECIALISTS OR A COMPANY'S OWN TECHNICIANS CAN PROVIDE THESE DETAILS SECOND EXECUTIVES SHOULD DRAW UP A PLAN FOR PERIODICALLY PURGING CERTAIN INFORMATION USING ONE OF THE COMMERCIAL SOFTWARE PROGRAMS DESIGNED TO REALLY WIPE OUT COMPUTER FILES COMPANIES ALSO SHOULD REDUCE THE NUMBER OF COPIES THEY KEEP OF OTHER FILES YOU REALLY HAVE TO MAKE SOME FILEMANAGEMENT DECISIONS FROM THE BEGINNING AND KEEP IT ENFORCED SAID RAYMOND T NIMMER A UNIVERSITY OF HOUSTON LAW PROFESSOR WHO SPECIALIZES IN COMPUTERS AND THE LAW FINALLY LET EMPLOYEES KNOW THAT THEIR MESSAGES CAN BE USED AS EVIDENCE THAT RIGHT THERE WILL CHANGE WHAT PEOPLE WRITE SAID MR JESSEN THE SEATTLE PROGRAMMER THE OTHER THING TO DO MR JESSEN SAID IS DON'T SEND IT BY EMAIL AT ALL TAKE IT TO THE BOARD FIRST A NEW YORK COURT TOLD SHAREHOLDERS WHO SUED GENERAL ELECTRIC CO EXECUTIVES A STATE JUDGE DISMISSED FOUR SHAREHOLDER DERIVATIVE LAWSUITS BROUGHT ON BEHALF OF GE AGAINST ITS TOP OFFICIALS THE SHAREHOLDERS FILED THE SUITS IN APRIL AFTER LEARNING OF A JUSTICE DEPARTMENT INVESTIGATION INTO ALLEGED GE PRICEFIXING BUT THE JUDGE SAID THE SHAREHOLDERS SHOULD HAVE ASKED THE COMPANY'S BOARD TO ACT AGAINST THE ALLEGED WRONGDOERS BEFORE GOING TO COURT UNDER NEW YORK LAW SUCH A REQUEST MUST PRECEDE A DERIVATIVE SUIT SAID JUDGE JOAN B LOBIS IN STATE COURT IN MANHATTAN THE SHAREHOLDERS HAD HOPED TO TAKE ADVANTAGE OF AN EXCEPTION TO THE LAW UNDER WHICH GOING TO THE DIRECTORS ISN'T REQUIRED IF THE BOARD IS CONTROLLED BY THE ACCUSED WRONGDOERS THE PLAINTIFFS ALLEGED THAT THE GE BOARD KNEW THE COMPANY WAS CONSPIRING WITH DE BEERS CONSOLIDATED MINES LTD OF SOUTH AFRICA TO CONTROL PRICES IN THE INDUSTRIAL DIAMOND MARKET GE MAKES INDUSTRIAL DIAMONDS JUDGE LOBIS SAID THE SHAREHOLDERS HAD FAILED TO ADEQUATELY BACK UP THEIR ALLEGATIONS THAT THE BOARD WAS UNSCRUPULOUS GE BASED IN FAIRFIELD CONN IS CONDUCTING AN INTERNAL INVESTIGATION OF THE ALLEGATIONS AND HAS SAID IT HAS NO REASON TO BELIEVE THEY ARE TRUE THE JUSTICE DEPARTMENT INVESTIGATION IS CONTINUING THE SHAREHOLDERS' ATTORNEY JEFFREY G SMITH OF WOLF HALDENSTEIN ADLER FREEMAN & HERZ IN NEW YORK WASN'T AVAILABLE TO COMMENT A MICHIGAN APPEALS COURT ORDERED A NEW TRIAL FOR A MAN CONVICTED OF MURDERING HIS WIFE AFTER FINDING THAT THE JURY SHOULD HAVE BEEN ALLOWED TO CONSIDER WHETHER HE WAS UNDER THE INFLUENCE OF THE SLEEPING DRUG HALCION WHEN THE KILLING OCCURRED THE COURT SAID THE TRIAL JUDGE ERRED IN NOT LETTING THE DEFENDANT ARGUE THAT HE WAS INVOLUNTARILY INTOXICATED FROM TAKING THE SLEEPING PILL AND THEREFORE WASN'T RESPONSIBLE FOR HIS ACTIONS PROSECUTORS ARE APPEALING THE DECISION TO THE STATE'S SUPREME COURT HALCION WHICH IS MADE BY UPJOHN CO OF KALAMAZOO MICH HAS BEEN THE SUBJECT OF SEVERAL CIVIL LAWSUITS LAST YEAR A TEXAS JURY AWARDED 18 MILLION TO THE FAMILY OF A MAN WHO CLAIMS THE DRUG CAUSED HIM TO BECOME VIOLENT AND MURDER HIS BEST FRIEND THE AWARD WAS LATER REDUCED UPJOHN MAINTAINS THAT HALCION IS SAFE JONATHAN M MOSES CONTRIBUTED TO THIS COLUMN 9301040040 930104 THE OUTLOOK PUBLIC INVESTMENT OFFERS NO MAGIC BY LINDLEY H CLARK JR NEW YORK THERE HAS BEEN A GREAT DEAL OF TALK RECENTLY OF INCREASED GOVERNMENT INVESTMENT IN THE ECONOMY AS A MEANS OF INCREASING OUTPUT AND PRODUCTIVITY SOME ECONOMISTS URGE GREATER FEDERAL OUTLAYS ON RESEARCH AND DEVELOPMENT WHILE OTHERS CALL FOR STEPPEDUP INVESTMENT ON INFRASTRUCTURE SUCH AS ROADS BRIDGES SEWER SYSTEMS AND THE LIKE IT IS HOWEVER CONTROVERSIAL WHETHER SUCH INVESTMENTS WOULD ACHIEVE THE RESULTS THAT THEIR PROPONENTS EXPECT TO TAKE R&D FIRST MOST ECONOMISTS BELIEVE THAT PRODUCTIVITY INCREASES ARE MADE POSSIBLE BY TECHNOLOGICAL DISCOVERIES WHICH IN TURN DEPEND ON SCIENTIFIC RESEARCH BUT THE COMPANY PRODUCING THE RESEARCH DEVELOPMENTS MAY LACK THE RESOURCES TO CASH IN ON THEM FULLY FOR THAT AND OTHER REASONS THE COMPANY MAY SPEND LESS THAN THE ECONOMY NEEDS IF THE GOVERNMENT SUPPLEMENTS THE PRIVATE OUTLAYS PERHAPS THE ECONOMY WILL GET ALL THE R&D INVESTMENT IT NEEDS AND PERHAPS NOT IN A NEW NATIONAL BUREAU OF ECONOMIC RESEARCH PAPER FRANK LICHTENBERG OF COLUMBIA BUSINESS SCHOOL EXAMINES R&D SPENDING AS WELL AS INVESTMENT IN FIXED AND HUMAN CAPITAL IN 53 COUNTRIES THE RATE OF RETURN ON GOVERNMENTFUNDED R&D HE FINDS IS LESS THAN THE RETURN ON PRIVATE INVESTMENT AND IN SOME CASES MAY EVEN BE NEGATIVE PROF LICHTENBERG WARNS THAT A GREAT DEAL OF GOVERNMENTRESEARCH SPENDING GOES INTO NATIONAL DEFENSE AND HEALTHCARE PROJECTS WHERE IT IS DIFFICULT TO MEASURE THE IMPACT ON PRODUCTIVITY BUT EVEN IF GOVERNMENT OUTLAYS HAVE A POSITIVE EFFECT ON PRODUCTIVITY HE IS CONVINCED THAT THE SAME AMOUNT OF SPENDING IN THE PRIVATE SECTOR WOULD PRODUCE HIGHER RETURNS SUCH GOVERNMENT PROJECTS WEAPONS RESEARCH FOR INSTANCE MAY CONTRIBUTE TO NATIONAL WELFARE EVEN IF THEY ADD NOTHING TO OUTPUT OR PRODUCTIVITY IN THE PRIVATE ECONOMY WHETHER THEY ARE WORTH FUNDING IS A QUESTION FOR NATIONAL POLICY ASIDE FROM RESEARCH SPENDING THERE IS CONTINUING CONTROVERSY OVER WHAT SHOULD BE DONE ABOUT INFRASTRUCTURE OUTLAYS SOME ANALYSTS ARE CONVINCED THAT INCREASING SUCH SPENDING WILL SHARPLY INCREASE PRODUCTIVITY GROWTH AMONG THE MOST OPTIMISTIC IS DAVID ASCHAUER OF BATES COLLEGE IN A JOURNAL PUBLISHED BY HARVARD AND THE UNIVERSITY OF COLORADO AT DENVER ALICIA H MUNNELL RESEARCH DIRECTOR OF THE BOSTON FEDERAL RESERVE BANK AGREES THAT SUCH SPENDING WILL HELP BUT SAYS IT IS UNCLEAR JUST HOW THIS INFLUENCE IS EXERTED AND HOW STRONG IT IS BUT INFRASTRUCTURE SPENDING NOW IS BEING WIDELY PROMOTED AS A SPUR TO AN ECONOMY WHOSE GROWTH STILL SATISFIES HARDLY ANYONE THAT CLAIM IS A LITTLE TOO MUCH FOR DOUGLAS HOLTZEAKIN OF THE METROPOLITAN STUDIES PROGRAM AT SYRACUSE UNIVERSITY IN A NATIONAL BUREAU OF ECONOMIC RESEARCH WORKING PAPER HE SAYS THE BEST DATA AVAILABLE INDICATE THAT THE BEST ESTIMATE OF THE IMPACT OF STATE OR LOCAL GOVERNMENT CAPITAL ON PRIVATE OUTPUT OR PRODUCTIVITY IS ESSENTIALLY ZERO EVEN HE ADMITS THAT THAT MAY PUT THE POINT A BIT TOO STRONGLY IT WOULD BE A DEPARTURE OF COMMON SENSE HE SAYS TO ARGUE THAT THERE ARE NOT IMPORTANT DIRECT IMPACTS FROM THE PROVISION OF ROAD NETWORKS BRIDGES WATERSUPPLY SYSTEMS SEWERAGE FACILITIES AND THE HOST OF OTHER INFRASTRUCTURE SERVICES SIMILARLY THERE ARE PRESUMABLY A WIDE ARRAY OF CAPITALEXPENDITURE PROJECTS THAT WOULD SURVIVE A RIGOROUS BENEFITCOST EXAMINATION THE SYRACUSE PROFESSOR ACKNOWLEDGES THAT INVESTMENTS IN PUBLIC CAPITAL MAY PROVIDE DIRECT BENEFITS TO CONSUMERS SUCH AS FEWER TRAFFIC JAMS SHORTER DELAYS AT AIRPORTS AND CLEANER RIVERS A MAJORITY OF LOCAL CITIZENS MIGHT CONSIDER AN OUTLAY ON A NEW HIGHWAY A FINE INVESTMENT SUCH SPENDING MIGHT INCREASE PRODUCTIVITY BY MAKING IT EASIER FOR COMPANIES TO DELIVER PRODUCTS BUT PROF HOLTZEAKIN SEES NO SIGNIFICANT INCREASE IN PRODUCTIVITY THAT IS LARGE ENOUGH TO SHOW UP IN THE DATA FEW WOULD QUARREL WITH THE IDEA THAT PUBLIC MONEY SHOULD BE SPENT WITH A CERTAIN AMOUNT OF CARE IN THE HARVARDCOLORADO JOURNAL HARVARD UNIVERSITY PROFESSOR DALE JORGENSON NOTES THAT THE CONGRESSIONAL BUDGET OFFICE IN 1988 REVIEWED COSTBENEFIT STUDIES OF A NUMBER OF INFRASTRUCTURE PROJECTS AND FOUND MODEST OR EVEN NEGATIVE PAYOFFS TO THIS SORT OF INVESTMENT IN THE SAME JOURNAL CHARLES R HULTEN AND ROBERT M SCHWAB TWO ECONOMISTS AT THE UNIVERSITY OF MARYLAND NOTE THAT THE CBO STUDY INDICATED THE RATE OF RETURN TO NEW PUBLIC INVESTMENT IS QUITE LOW WHILE THE RATE OF RETURN TO MAINTENANCE AND REHABILITATION IS RATHER LARGE THIS SUGGESTS THAT WE MAY HAVE OVERINVESTED IN NEW PUBLIC CAPITAL AT THE EXPENSE OF SUSTAINING THE EXISTING STOCK A NUMBER OF ECONOMISTS SAYS PROF JORGENSON HAVE BUILT UP A SET OF TECHNIQUES FOR ANALYZING INFRASTRUCTURE INVESTMENT BASED ON SOUND MICROECONOMIC PRINCIPLES AND AMPLE EMPIRICAL DATA WHAT IS THEIR MESSAGE BY FAILING TO MAKE USE OF MARKETS IN DETERMINING THE APPROPRIATE LEVEL OF INFRASTRUCTURE WE HAVE OVERINVESTED IN SOME AREAS AND UNDERINVESTED IN OTHERS ALICIA MUNNELL AGREES THAT THE GOVERNMENT NEEDS MORE RESEARCH TO MAKE SURE THAT MONEY GOES TO THE RIGHT PROJECTS WHEN CONSIDERING INFRASTRUCTURE PROJECTS SHE SAYS THE STRUCTURE OF THE GRANTS TO STATES AND LOCALITIES AND THE WAY SERVICES ARE PRICED ARE AS IMPORTANT AS THE TOTAL AMOUNT OF THE SPENDING PUBLIC INVESTMENT MAY WORK BUT IT OFFERS NO MAGIC 9301040039 930104 REVIEW & OUTLOOK EDITORIAL THE YEAR'S IMPENDING TRAGEDY AS WE ENTER 1993 THE YEAR'S IMPENDING CRISIS AND TRAGEDY IS CALLED KOSOVO THE ETHNIC CLEANSING IN BOSNIA IS LIKELY TO PROVE ONLY A PRELUDE TO AN EVEN MORE APPALLING SPECTACLE IN THIS CORNER OF WHAT WAS FORMERLY YUGOSLAVIA TO JUDGE BY RECENT EVENTS INCLUDING A WARNING OF US MILITARY INTERVENTION BY PRESIDENT BUSH THE EXPLOSION MAY COME SOONER RATHER THAN LATER KOSOVO IS MYTHICAL TO THE HYPERNATIONALISTS DIRECTING THE SERBIAN GOVERNMENT AND ARMIES BACK IN 1389 IT WAS THE HEART OF THE MEDIEVAL SERBIAN KINGDOM IN THAT YEAR THE FLOWER OF SERBIAN MANHOOD FELL IN AN EPIC BATTLE WITH THE TURKS AND SERBIA BECAME PART OF THE OTTOMAN EMPIRE THE ENSUING SIX CENTURIES HAVE NOT ERASED THE GRUDGE BUT HAVE DECISIVELY CHANGED THE POPULATION OF KOSOVO BY NOW 90 OF ITS RESIDENTS ARE PREPONDERANTLY MUSLIM ALBANIANS ETHNIC CLEANSING TO REESTABLISH THE ANCIENT SERBIA WOULD INVOLVE KILLING OR DISPLACING OF SOME 16 MILLION PEOPLE PRECISELY THIS DREAM INCREDIBLE AS IT SEEMS TO THE NONBALKAN MIND WEIGHS HEAVILY IN SERBIAN POLITICS IN 1990 SERBIA REVOKED THE REGION'S LOCAL AUTONOMY ABOLISHED ITS PARLIAMENT KILLED 300 PROTESTERS CLOSED 2000 ALBANIAN SHOPS AND BANNED THE USE OF ALBANIAN IN SCHOOLS THE SEETHING POPULATION IS CLOSE TO REVOLT THE INDEPENDENT SERBIAN NEWSPAPER BORBA PREDICTS VIOLENCE SOON IN KOSOVO IN THE FACE OF A RUINED ECONOMY SERBIAN STRONGMAN SLOBODAN MILOSEVIC WON LAST MONTH'S ELECTION BY WHIPPING SERBS INTO A NATIONALISTIC FERVOR OVER KOSOVO AND BOSNIA BELGRADE TV HAS EVEN CARRIED REPORTS OF SERB BABIES BEING FED TO LIONS IN SARAJEVO'S ZOO SERBIAN POLICY IS NOW DRIVEN BY HIM AND VOJISLAV SESEJL A LEADER OF THE RADICAL PARTY WHO WANTS TO RID SERBIA OF ITS MINORITIES AND HAS BEEN ACCUSED BY THE US OF WAR CRIMES IN BOSNIA LAST WEEK AN EMBOLDENED MR MILOSEVIC OUSTED PRIME MINISTER MILAN PANIC THE MODERATE WHO HAD RUN AGAINST HIM ALARMED BY THE TREND OF EVENTS PRESIDENT BUSH WROTE MR MILOSEVIC THAT IN THE EVENT OF CONFLICT IN KOSOVO CAUSED BY SERBIAN ACTION THE UNITED STATES WILL BE PREPARED TO EMPLOY MILITARY FORCE AGAINST THE SERBIANS IN KOSOVO AND SERBIA PROPER THIS IS AN EXTRAORDINARY CHANGE IN US POLICY PROMISING TO GO FURTHER TO PROTECT CITIZENS OF KOSOVO TECHNICALLY A SERBIAN PROVINCE THAN IT HAS TO PROTECT CITIZENS OF BOSNIAHERZEGOVINA A RECOGNIZED STATE LATE LAST WEEK BRITISH FOREIGN MINISTER DOUGLAS HURD WARNED THAT THE BLOODY MINDED CRUELTY OF THE SERBS WAS CHANGING WESTERN ATTITUDES TO THE POINT WHERE WE CAN IMAGINE MILITARY INTERVENTION TO PREVENT A GENERAL BALKAN WAR INDEED THERE ARE HIGHLY PLAUSIBLE AND TROUBLING SCENARIOS IN WHICH THE WAR IN THE BALKANS COULD SPREAD SHOULD THE SERBS IMPOSE ETHNIC CLEANSING IN KOSOVO IT IS ASSUMED THAT NEIGHBORING ALBANIA WOULD COME TO THE DEFENSE OF ITS ETHNIC BRETHREN THERE IN NOVEMBER ALBANIA AND TURKEY SIGNED A MILITARY COOPERATION PACT ANY TURKISH RETURN TO THE BALKAN NATIONS IT ONCE RULED WOULD INFLAME GREECE ITS ANCIENT RIVAL WHICH IS PREPARING TO DEPLOY 35000 TROOPS ON ITS BORDER WITH MACEDONIA RUSSIA HAS ALSO BEEN A HISTORIC ALLY OF THE SERBS AGAINST THE TURKS AND OTHER MUSLIMS AND HARDLINERS IN MOSCOW HAVE BEEN CRITICIZING PRESIDENT YELTSIN'S COOPERATION WITH THE WEST IT'S CERTAINLY POSSIBLE TO DRAW PARALLELS WITH THE START OF WORLD WAR I IN THE BALKANS BUT THE PARALLELS WITH WORLD WAR II ARE EVEN MORE CHILLING EVEN IF THIS IS NOT SARAJEVO IN 1914 IT MAY BE ETHIOPIA IN 1935 WHEN THE WORLD COMMUNITY STOOD BY WHILE MUSSOLINI'S INVADING LEGIONS MASSACRED THOUSANDS IF ETHNIC CLEANSING SUCCEEDS IT CAN ONLY ENCOURAGE THE THUGS OF THE WORLD SUCH A PRECEDENT UNLOOSED IN THE FORMER SOVIET UNION FOR EXAMPLE WOULD CAUSE TROUBLES AND DISRUPTIONS LIKELY TO PROVE HIGHLY DETRIMENTAL TO BOTH A PEACEFUL WORLD AND US INTERESTS WHAT TO DO ABOUT THIS IS OBVIOUSLY NO EASY PROBLEM ONTHEGROUND INTERVENTION IS ALMOST IMPOSSIBLY COMPLICATED BY THE FOREBODING TERRAIN AND COMPLICATED ENMITIES THE BALKAN MUSLIMS BEING NO PRIZE EITHER THE UNITED NATIONS NOFLY ORDER AGAINST SERBIAN WARPLANES OVER BOSNIA HAS BEEN IN EFFECT SINCE OCTOBER 30 BUT HAS BEEN ROUTINELY FLOUTED WESTERN AIR STRIKES ALONE ARE NOT LIKELY TO BE MILITARILY DECISIVE THE MAIN POINT OF LEVERAGE WOULD SEEM TO BE THE CURIOUS WESTERN ARMS EMBARGO ON BOTH SIDES IT LEAVES THE SERBS WITH THE YUGOSLAV ARMY WEAPONS AND PREVENTS THE BOSNIANS FROM BUYING WEAPONS TO DEFEND THEMSELVES THE MANIFEST UNFAIRNESS AMONG OTHER THINGS IS MAKING LIFE DIFFICULT FOR PROWESTERN ISLAMIC GOVERNMENTS SUCH AS TURKEY AND EGYPT ONE PLAUSIBLE POLICY WOULD BE ARMING THE RESISTANCE TO GIVE MR MILOSEVIC HIS OWN LITTLE AFGHANISTAN HELPING THE MUJAHADEEN AFTER ALL WAS AN IMPORTANT STEP IN DEFEATING THE COMMUNIST EMPIRE WE ARE ONLY STARTING TO DEVELOP A FOREIGN POLICY TO FOLLOW COLD WAR CONTAINMENT AND BOTH THE US AND THE INTERNATIONAL COMMUNITY HAVE TO DEVELOP NEW OPTIONS FOR INTERVENTION INEVITABLY THERE WILL BE SITUATIONS THAT ARE NEITHER SOMALIA WITH ITS FUNDAMENTALLY HUMANITARIAN MISSION NOR IRAQ WITH ITS CLEAR THREAT TO MAJOR INTERESTS LIKE THE PERSIAN GULF OIL FIELDS YET AS THE PRESENT TRAGEDY OF BOSNIA AND THE IMPENDING TRAGEDY OF KOSOVO SHOW OFTEN ENOUGH THESE SITUATIONS WILL ALSO BE TOO CONTAGIOUS TO IGNORE 9301040038 930104 MARKETING & MEDIA NEW INPUT SOUGHT BY FCC ON CHANGES IN SYNDICATION LAW BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION ASKED FOR A SECOND ROUND OF PUBLIC COMMENT ON ITS RULES LIMITING PARTICIPATION BY TELEVISION NETWORKS IN THE LUCRATIVE RERUN BUSINESS LAST YEAR THE US COURT OF APPEALS FOR THE 7TH CIRCUIT SAID THE SOCALLED FINANCIAL INTEREST AND SYNDICATION RULES WERE ARBITRARY AND CAPRICIOUS AND SAID THE COMMISSION MUST BETTER JUSTIFY THEM OR PRESENT A NEW SET OF RULES TO THE COURT FOR ITS APPROVAL THE COURT SAID THE RULES WILL LAPSE IF THE COMMISSION DOESN'T PRESENT IT WITH ONE OF THE OPTIONS BY EARLY APRIL IN ASKING FOR PUBLIC COMMENT THE COMMISSION IS BEGINNING TO CONSIDER ITS OPTIONS FOR RESPONDING TO THE COURT THE AGENCY IS ASKING THE PUBLIC TO PROVIDE NEW INFORMATION IN SUPPORT OF THE 1991 RULES OR TO PROPOSE A DIFFERENT SET OF FINANCIAL INTEREST RULES THE RULES INITIALLY WERE DEVELOPED TO BAR THE NETWORKS FROM PRODUCING OWNING OR DISTRIBUTING THE PROGRAMS THEY AIR THE COMMISSION VOTED 32 TO SUBSTANTIALLY EASE THOSE LIMITATIONS IN 1991 THE NETWORKS HAVE CONSISTENTLY PUSHED FOR ELIMINATING THEM WHILE HOLLYWOOD PRODUCERS ARGUE THAT THE RULES SHOULD REMAIN IN PLACE TO ENSURE THAT NETWORK PROGRAMS COME FROM DIVERSE SOURCES THE FATE OF THE ISSUE REMAINS VERY UNCERTAIN WITH A NEW ADMINISTRATION TAKING OFFICE THIS MONTH FCC CHAIRMAN ALFRED SIKES A BUSH APPOINTEE WHO HAS PUSHED FOR ELIMINATING THE RULES HAS SAID HE'LL STEP DOWN JAN 19 THE CLINTON ADMINISTRATION ALSO WILL GET TO FILL THE SEAT OF COMMISSIONER SHERRIE MARSHALL WHOSE TERM EXPIRED IN JUNE 9301040037 930104 BUSINESS BRIEF VALHI INC CHARGE OF 70 MILLION IS SET FOR CHANGES IN ACCOUNTING VALHI INC SAID IT WILL TAKE A CHARGE OF ABOUT 70 MILLION OR 61 CENTS A SHARE FOR 1992 REFLECTING THE ADOPTION OF TWO ACCOUNTING STANDARDS FOR POSTRETIREMENT BENEFITS AND INCOME TAXES THE DALLAS COMPANY ALSO SAID ITS 49OWNED AFFILIATE NL INDUSTRIES INC WILL RECORD A CHARGE OF 32 MILLION OR 63 CENTS A SHARE AND ITS 48OWNED TREMONT CORP WILL RECORD A CHARGE OF 32 MILLION OR 436 A SHARE RELATING TO THE ACCOUNTING CHANGES VALHI IS A DIVERSIFIED COMPANY ENGAGED IN THE REFINED SUGAR FOREST PRODUCTS FAST FOOD AND HARDWARE PRODUCTS INDUSTRIES NL INDUSTRIES BASED IN HOUSTON MANUFACTURES CHEMICALS AND TREMONT IN DENVER PRODUCES TITANIUM METAL PRODUCTS AND MINES BENTONITE ADOPTION OF THE ACCOUNTING CHANGES WON'T HAVE ANY IMPACT ON CASH FLOW AT THE THREE COMPANIES CONTROLLED BY DALLAS FINANCIER HAROLD SIMMONS VALHI SAID BUT THE CHARGES WILL ADD TO THE LOSSES REPORTED BY THE THREE COMPANIES THROUGH THE FIRST NINE MONTHS OF 1992 THE RETIREEBENEFITS RULE REQUIRES COMPANIES TO ACCOUNT FOR FUTURE RETIREE BENEFITS ON AN ACCRUAL BASIS IN ORDER TO ANTICIPATE THE FULL COST OF THOSE BENEFITS THE INCOME TAX RULE ALLOWS COMPANIES TO CURRENTLY RECOGNIZE THE VALUE OF LOSS CARRYFORWARDS AND OTHER ITEMS AS A DEFERRED ASSET 9301040036 930104 ENTERPRISE SMALLTIME FOOD PRODUCERS FIND GROWTH DOESN'T PAY WARY OF SACRIFICING HOMETOWN FLAVOR THEY RELISH LIFE IN THE SLOW LANE BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL WHEN IT COMES TO FOOD IT'S HARD TO GET MORE OBSCURE THAN A MADEINATLANTA DELICACY CALLED LARDER OF LADY BUSTLE LEMON SAUCE THE NAME ITSELF IS A MOUTHFUL AND THE PRODUCT USED AS A BISCUIT SPREAD AND CAKE FILLING IS HARDLY A KITCHEN STAPLE BUT FOR JOAN AND DONALD MOORE THE QUAINTLY NAMED DRESSING HAS LAUNCHED A SMALL BUT THRIVING HOMEBASED SPECIALTYFOOD COMPANY TODAY LARDER OF LADY BUSTLE LTD MAKES SIX SAUCES AND CONDIMENTS MR MOORE GAVE UP AN ANTIQUE BUSINESS TO WORK FULLTIME FOR THE VENTURE WHICH HAD SALES OF ABOUT 100000 IN 1992 THAT'S LESS THAN A DROP IN THE KETTLE FOR THE TYPICAL FOOD MANUFACTURER BUT IT'S JUST ABOUT RIGHT FOR THE MOORES WHO ARE STICKLERS FOR QUALITY THERE'S NO WAY YOU CAN MASSPRODUCE THESE THINGS MR MOORE SAYS WE VIRTUALLY HAVE TO STAY SMALL THE MOORES' EXPERIENCE IS TYPICAL OF HUNDREDS OF TINY FOOD MANUFACTURERS THAT TURN OUT EVERYTHING FROM TURTLE SOUP TO CHESTNUTS WHILE MOST STARTUP COMPANIES CAN'T WAIT TO GET ON THE FAST TRACK THESE MOMANDPOP KITCHEN OPERATIONS LIKE TO TAKE THINGS SLOW AND IN AN INDUSTRY DOMINATED BY GIANT PROCESSORS THEY STAY SMALL BY DESIGN MANY SHUN ADVERTISING CONTENT TO BUILD THEIR REPUTATIONS BY WORD OF MOUTH AND TO SELL THEIR PRODUCTS AT LOCAL GOURMET SHOPS AND FARMERS' MARKETS THAT WAY THEY ESCAPE THE SIZABLE PROMOTIONAL AND DISTRIBUTION EXPENSES REQUIRED TO ENTER THE FIERCE COMPETITION FOR SUPERMARKET SHELF SPACE THERE'S A MARGIN OF PROFITABILITY IF YOU STAY LOCAL AND STAY SMALL SAYS MARGARET ENGEL COAUTHOR OF FOOD FINDS A COMPENDIUM OF 381 LOCAL FOOD MANUFACTURERS THESE COMPANIES HAVE THOUGHT LONG AND HARD ABOUT WHERE THEY WANT TO BE FOR MOST OF THEM IT'S NOT WORTH IT TO GET TO THE NEXT LEVEL THE PRICE LISTS OF MANY HOMEBASED FOOD COMPANIES ARE SIMPLE PHOTOCOPIES RATHER THAN FOURCOLOR CATALOGS ADDING A TOLLFREE PHONE NUMBER FOR MAILORDER SALES IS ABOUT AS RACY AS SOME OF THEM GET ADDS MS ENGEL THE GOURMET CRAZE COMPANIES THAT CHOOSE OFFBEAT NICHES THAT ARE SHUNNED BY THE GIANTS PROBABLY COULDN'T GROW MUCH EVEN IF THEY WANTED TO BECAUSE DEMAND FOR THEIR PRODUCTS IS SLIM WS WELLS & SONS OF WILTON MAINE FOR EXAMPLE TURNS OUT CANNED DANDELION GREENS AND FIDDLEHEAD FERNS COMPANIES THAT MAKE MORE TRADITIONAL PRODUCTS SUCH AS POTATO CHIPS OR BARBECUE SAUCE TEND TO TRADE ON QUALITY TRADITION AND REGIONAL LOYALTY WHAT ALL OF THEM EXPLOIT IS AMERICA'S GROWING FASCINATION WITH GOURMET COOKING STEPHEN HALL A DEDHAM MASS CONSULTANT SAYS CONSUMERS' APPETITE FOR EXOTIC TABLE FARE PROVIDES AN OPENING FOR KITCHEN ENTREPRENEURS WHO CAN NAME A BRAND OF JALAPENO CATSUP HE ASKS THE LOWTECH REQUIREMENTS OF FOOD PROCESSING ALSO HELP YOU CAN SIT IN THE KITCHEN AND ADD SIX OR SEVEN INGREDIENTS AND IF YOU PACKAGE IT PROPERLY YOU CAN MAKE A GO HE ADDS THE EASE OF GETTING STARTED AND THE ECONOMIC PINCH MANY FAMILIES HAVE FELT IN THE PAST TWO OR THREE YEARS HAVE CREATED A BOOM IN THE HOMEMADEFOOD INDUSTRY MR HALL BELIEVES ECONOMIC CIRCUMSTANCES HAVE FORCED PEOPLE TO FIND ADDITIONAL WAYS OF GENERATING INCOME HE SAYS THEY ARE COMING OUT OF THE EAVES IT'S AMAZING IN ISSAQUAH WASH VIRGINIA VADSET TURNED HER ONESTORY HOME INTO A MANUFACTURING SITE FOR TOKUL GOLD CARAMELS IT CONSISTS OF A SEPARATE KITCHEN REQUIRED BY COUNTY HEALTH RULES AND A WRAPPING MACHINE IN THE LIVING ROOM HER HUSBAND A BOEING CO ENGINEER TOOK EARLY RETIREMENT TO WORK FULL TIME ON THE CANDYMAKING VENTURE THEIR SON AN ACTOR IN CALIFORNIA HANDLES SALES IN THAT STATE MS VADSET EXPECTS TO SELL ABOUT 20000 POUNDS OF CARAMELS THIS YEAR MOSTLY TO SPECIALTY FOOD STORES ON THE WEST COAST SHE SAYS HER COMPANY'S SALES HAVE BEEN RISING ABOUT 15 A YEAR THE PRODUCT LINE NOW INCLUDES A TANGERINE SAUCE A BUTTERSCOTCH SAUCE A BARBECUE SAUCE AND A RAISIN SAUCE WITH MUSTARD ONE OF THE TWO BIGGEST SELLERS THE COUPLE PURCHASES TIME IN A LOCAL FOODPROCESSING PLANT WHERE THEY DO THEIR OWN COOKING AND PACKING SPECIALTY STORES GENERALLY ORDER THREE OR FOUR CASES AT A TIME THE COMPANY DOES A SMALL MAILORDER BUSINESS FOR INDIVIDUALS BUT DOESN'T HONOR CREDIT CARDS BECAUSE THE COST FOR SMALL HOMEBASED MAILORDER HOUSES IS PROHIBITIVE THE OWNERS SAY MS MOORE SAYS SHE HOPES TO PRODUCE A COLOR BROCHURE THIS YEAR 9301040035 930104 MANAGER'S JOURNAL GOING TO MARKET IN THE EAST BY JOSEPH P QUINLAN YET DESPITE EXPANDING TRADE LINKS MANY COMPANIES REMAIN UNFAMILIAR WITH ASEAN'S COMMERCIAL TERRAIN AND UNAWARE OF POTENTIAL BUSINESS HAZARDS IN THE REGION TO TAP THESE BURGEONING MARKETS US COMPANIES SHOULD CAREFULLY ASSESS THE FOLLOWING STRATEGIC VARIABLES MARKET SIZE VS MARKET POTENTIAL ASEAN PROMOTES ITSELF AS A MARKETPLACE OF SOME 330 MILLION PEOPLE ROUGHLY THE SAME SIZE AS THE EUROPEAN COMMUNITY THE TRUE MARKET FOR US GOODS AND SERVICES HOWEVER IS MUCH SMALLER ONCE REGIONAL INCOME DISPARITIES ARE CONSIDERED THAILAND FOR INSTANCE HAS A TOTAL POPULATION OF 58 MILLION BUT THE GENUINE CONSUMER MARKET IS CONCENTRATED IN AND AROUND BANGKOK THERE AVERAGE HOUSEHOLD INCOMES HAVE RISEN SHARPLY OVER THE PAST FIVE YEARS AND ARE NOW UP TO 10 TIMES HIGHER THAN LEVELS IN OTHER PARTS OF THE NATION THE BAD NEWS IS THAT THE CAPITAL ACCOUNTS FOR JUST 14 OF THE TOTAL POPULATION REGIONAL INCOME DISPARITIES ARE JUST AS PRONOUNCED IN THE PHILIPPINES AND INDONESIA THE COMBINED POPULATION OF THE TWO NATIONS EXCEEDS A QUARTER OF A BILLION PEOPLE HOWEVER THE MAJORITY OF THESE PEOPLE ARE POOR RURAL DWELLERS WITH LITTLE INCOME OR SPENDING POWER FOR FOREIGN GOODS UNFORTUNATELY THE WEALTHIEST CONSUMER MARKET IN ASEAN SINGAPORE IS ALSO THE SMALLEST THE CITYSTATE'S PERCAPITA INCOME IS SECOND ONLY TO JAPAN'S IN ASIA ALTHOUGH SINGAPORE'S TOTAL POPULATION IS JUST 25 MILLION LABOR CHEAP AND ABUNDANT LABOR WAS ONCE A STRATEGIC ENDOWMENT OF ASEAN AND NOT SURPRISINGLY A MAGNET FOR FOREIGN INVESTMENT WITH THE EXCEPTION OF INDONESIA AND THE PHILIPPINES HOWEVER ASEAN'S DAYS OF INEXPENSIVE LABOR HAVE PASSED WAGES IN MALAYSIA AND THAILAND HAVE RISEN SHARPLY OVER THE PAST FEW YEARS WITH THE POOL OF SKILLED AND EVEN SEMISKILLED WORKERS ALL BUT DRIED UP AROUND THE MAIN INDUSTRIAL AREAS OF BANGKOK KUALA LUMPUR AND PENANG MALAYSIA'S MANUFACTURING SECTOR ACCORDING TO THE FEDERATION OF MALAYSIAN MANUFACTURERS IS SHORT SOME 50000 WORKERS FORCING THE NATION TO IMPORT LABOR SINGAPORE WITH THE HIGHEST WAGES IN THE REGION MUST ALSO IMPORT WORKERS LABOR PROBLEMS IN INDONESIA ARE OF A DIFFERENT MAGNITUDE THE NATION HAS ONE OF THE LARGEST LABOR FORCES IN THE WORLD NEARLY 80 MILLION PEOPLE ALTHOUGH THE MAJORITY OF WORKERS ARE GENERALLY UNSKILLED AND LACKING IN TECHNOLOGICAL TRAINING BECAUSE EDUCATIONAL STANDARDS AND REQUIREMENTS HAVE FAILED TO KEEP PACE WITH THE RAPID RATE OF INDUSTRIALIZATION INDONESIA IS SERIOUSLY SHORT OF ENGINEERS SCIENTISTS AND OTHER TECHNICAL PERSONNEL REQUIRED TO ADVANCE THE COUNTRY TO THE NEXT STAGE OF DEVELOPMENT THIS MEANS THAT MANY COMPANIES WILL HAVE TO SPEND EXTRA TIME AND ENERGY ACCLIMATING FOREIGN PROFESSIONALS TO THE INDONESIAN WORKPLACE AND THIS NATION IS NOT ALONE EVERY OTHER COUNTRY IN ASEAN FACES A SIMILAR PROBLEM RACE OPERATING EFFECTIVELY IN ASEAN REQUIRES THAT US COMPANIES APPRECIATE AND BE SENSITIVE TO UNDERLYING RACIAL TENSIONS FOR EXAMPLE THE TENSIONS BETWEEN THE MAJORITY MALAYS AND THE MINORITY CHINESE THE LATTER ARE THE CAPTAINS OF INDUSTRY IN SOUTHEAST ASIA AND DOMINATE SUCH SECTORS AS BANKING MANUFACTURING CONSTRUCTION AND RETAIL AS A RESULT THE CHINESE CONTROL A DISPROPORTIONATE AMOUNT OF THE REGION'S WEALTH WHICH IN TURN STOKES ANTICHINESE SENTIMENT AMONG NATIVE MALAYS THESE TENSIONS PLAY A LARGE ROLE IN MANAGEMENT DECISIONS INVOLVING BOTH GROUPS IN THE WORKPLACE RACE RELATIONS ARE PARTICULARLY DELICATE IN INDONESIA AND MALAYSIA INDEED IN THE PAST THREE DECADES BOTH MALAYSIA IN 1969 AND INDONESIA IN 196566 HAVE SEEN RACIAL FRICTIONS BOIL OVER INTO BLOODSHED MALAYSIA TO MAINTAIN ETHNIC PEACE HAS GONE SO FAR AS TO LEGISLATE AN ECONOMIC AFFIRMATIVE ACTION PROGRAM TO REDISTRIBUTE WEALTH ALONG RACIAL LINES IN THAILAND AND THE PHILIPPINES INTERRACIAL MARRIAGES HAVE HELPED EASE TENSIONS HOWEVER EVEN IN THESE NATIONS THE ISSUE OF RACE IS NEVER FAR FROM THE SURFACE RELIGION THE ROLE OF RELIGION FIGURES PROMINENTLY IN ASEAN AND SHOULD BE RECOGNIZED BY US COMPANIES AS A POWERFUL SOCIAL FORCE RELIGION IS NOT PART OF THE BUSINESS EQUATION IN TAIWAN AND SOUTH KOREA BUT IN THAILAND BUDDHISM THE PROFESSED RELIGION OF 95 OF THE POPULATION PERMEATES NEARLY EVERY ASPECT OF SOCIAL LIFE AND CUSTOMS SIMILARLY THE CATHOLIC CHURCH IS ONE OF THE MOST RESPECTED AND INFLUENTIAL INSTITUTIONS IN THE PHILIPPINES WHERE IT NONETHELESS IS THE SOURCE OF RELIGIOUS TENSION WITH THE COUNTRY'S MUSLIM POPULATION ISLAM IS THE THIRD KEY RELIGION OF ASEAN WITH INDONESIA AND MALAYSIA BOTH ISLAMIC NATIONS INDONESIA IN FACT IS THE LARGEST ISLAMIC NATION IN THE WORLD THOUGH TO A LARGE EXTENT ISLAM HAS BEEN SECULARIZED BY THE SUHARTO GOVERNMENT IN MALAYSIA ISLAM IS STRICTER AND MORE PERVASIVE IN DAILY LIFE INFRASTRUCTURE SEVERE INFRASTRUCTURE LIMITATIONS HAVE RAISED THE COST OF OPERATING IN ASEAN PROMPTING SOME MULTINATIONALS TO INVEST ELSEWHERE FOLLOWING FIVE YEARS OF STRONG GROWTH THE PHYSICAL INFRASTRUCTURE OF THE REGION IS STRAINING AT THE SEAMSTHE ROADS ARE CROWDED THE PORTS ARE CLOGGED AND THE AIRPORTS ARE JAMMED POLLUTION AND ENVIRONMENTAL DEGRADATION COMPOUND MATTERS THE UPSHOT IS INFRASTRUCTURE GRIDLOCK WHICH THREATENS NOT ONLY TO STRANGLE GROWTH AND TRADE BUT ALSO TO CURTAIL NEW FOREIGN INVESTMENT THE PROBLEM IS THE MOST ACUTE IN THAILAND WHERE TRAFFIC CRAWLS AT AN AVERAGE SPEED OF LESS THAN FIVE MILES AN HOUR IN BANGKOK IN THE PHILIPPINES POWER SHORTAGES ARE ALL TOO COMMON AND FREQUENTLY RESULT IN LOST PRODUCTION THE ONLY EXCEPTION TO ASEAN'S UNDERDEVELOPED AND OVERTAXED INFRASTRUCTURE IS SINGAPORE WHOSE FIRSTCLASS PORT AND AIRPORT RATE AMONG THE BEST IN THE WORLD MARKET SIZE LABOR RACE RELIGION AND INFRASTRUCTUREALL OF THESE VARIABLES PRESENT UNIQUE CHALLENGES FOR US COMPANIES OPERATING IN ASEAN BUT BY CAREFULLY ANALYZING EACH FACTOR IN THE CONTEXT OF THEIR OWN BUSINESSES AMERICAN COMPANIES CAN GREATLY ENHANCE THE ODDS OF SUCCESS IN ONE OF THE WORLD'S MOST DYNAMIC MARKETS MR QUINLAN IS ASIAN EDITOR OF INTERNATIONAL REPORTS A WEEKLY FINANCIAL NEWSLETTER PUBLISHED IN NEW YORK 9301040034 930104 YEAREND REVIEW OF INTERNATIONAL MARKETS CURRENCY TRADERS ANALYSTS EXPECT THE DOLLAR TO POST ITS OFTPREDICTED REBOUND THIS YEAR BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL PLAY IT AGAIN SAM FOR THE PAST TWO YEARS CURRENCY ANALYSTS AND TRADERS PREDICTED THAT A RECOVERING US ECONOMY AND RISING US INTEREST RATES COUPLED WITH SLOWING EUROPEAN ECONOMIES AND LOWER RATES IN EUROPE WOULD SPELL A STRONGER DOLLAR THEY WERE WRONG GUESS WHAT THEY'RE SINGING THE SAME TUNE AGAIN FOR 1993 INTEREST RATE DIFFERENTIALS WILL NARROW IN FAVOR OF THE DOLLAR THE US ECONOMY WILL GROW FASTER THAN MOST OF ITS TRADING PARTNERS US EQUITY MARKETS LOOK RELATIVELY ATTRACTIVE SAYS LAWRENCE A VEIT AN INTERNATIONAL ECONOMIST AT BROWN BROTHERS HARRIMAN & CO SOME OF THE POLITICAL AND SOCIAL UNCERTAINTIES THAT EXIST ABROAD WILL NOT EXIST IN THE US AND WE START FROM A POSITION OF THE DOLLAR BEING UNDERVALUED MANY OF THESE FACTORS ARE ALREADY BEHIND THE DOLLAR'S REBOUND LATE LAST YEAR FROM RECORD LOWS IN SEPTEMBER IN SIX MONTHS MR VEIT SEES THE DOLLAR TRADING AT 169 MARKS AND 126 YEN AND THE BRITISH POUND AT 142 BY YEAR END MR VEIT PROJECTS THE US CURRENCY TO BE AT 180 MARKS AND 118 YEN THE POUND HE SAYS WILL HAVE PLUMMETED TO 131 AS RECENTLY AS EARLY SEPTEMBER IT TRADED ABOVE 2 AT THE END OF 1992 THE DOLLAR STOOD AT 16209 MARKS AND 12484 YEN COMPARED WITH 15170 MARKS AND 12485 YEN AT THE START OF 1992 ON DEC 31 1991 THE POUND SOLD FOR 18690 A YEAR LATER IT STOOD AT 15100 IN BETWEEN A LOT HAPPENED AFTER CLIMBING 11 TO 16860 MARKS IN LATE MARCH ON PROSPECTS OF A WEAKER GERMAN ECONOMY AND LOWER GERMAN INTEREST RATES PLUS A STRONGER US ECONOMIC RECOVERY THE DOLLAR BEGAN TO TUMBLE WHEN THOSE EXPECTATIONS FAILED TO MATERIALIZE BY SEPT 2 THE DOLLAR WAS TRADING AT A POSTWORLD WAR II LOW OF 13862 MARKS IT ALSO FELL TO RECORD LOWS AGAINST THE SWISS FRANC AND A FIVEYEAR LOW AGAINST THE BRITISH POUND IN LATE SEPTEMBER THE DOLLAR HIT A RECORD LOW OF 1186 YEN AFTER HAVING CLIMBED TO A 1992 HIGH OF 135 YEN IN APRIL GOING INTO 1992 EVERYBODY WAS VERY BULLISH ABOUT THE DOLLAR ABOUT US ECONOMIC RECOVERY AND GERMANY WAS EXPECTED TO CUT THEIR RATES IN FEBRUARY EXPLAINS GEORGE MAGNUS CHIEF INTERNATIONAL FIXEDINCOME ECONOMIST AT SG WARBURG & CO IN LONDON BUT THE BUNDESBANK ACTUALLY RAISED INTEREST RATES INITIALLY TO BATTLE INFLATIONARY PRESSURES ASSOCIATED WITH THE SPIRALLING COSTS OF BAILING OUT THE FORMER EAST GERMANY WHAT'S MORE US RATES FELL INSTEAD OF STABILIZING IT WAS A MAJOR DISAPPOINTMENT SAYS MR MAGNUS GERMANY'S RELUCTANCE TO LOWER INTEREST RATES AMID EUROPE'S FAILED ATTEMPT AT POLITICAL MONETARY AND ECONOMIC UNION CLAIMED OTHER VICTIMS AS WELL IN A EUROPEAN CURRENCY CRISIS THAT BEGAN IN SEPTEMBER BRITAIN AND ITALY WERE FORCED TO PULL THE POUND AND LIRA OUT OF EUROPE'S SYSTEM OF SEMIFIXED EXCHANGE RATES AND SPAIN AND PORTUGAL HAD TO DEVALUE THEIR CURRENCIES WITHIN THE SYSTEM IN ADDITION FINLAND SWEDEN AND NORWAY WERE FORCED TO ABANDON THEIR CURRENCIES' UNOFFICIAL LINKS TO THE SYSTEM EXPECTING THE FRENCH FRANC AND DANISH KRONE TO COME UNDER SUSTAINED ATTACK EARLY THIS YEAR PAUL CHERTKOW HEAD OF GLOBAL CURRENCY RESEARCH AT UBS PHILLIPS & DREW IN LONDON SAYS THAT EUROPE'S EXCHANGE RATE MECHANISM IS GOING TO BE IN GRAVE JEOPARDY A DEVALUATION OF THE FRENCH FRANC WOULD SIGNAL THE DEATH KNELL OF THE ERM ITSELF WHILE MR CHERTKOW EXPECTS GERMANY AND FRANCE TO VIGOROUSLY DEFEND THE FRANC GEOFFREY DENNIS AN INTERNATIONAL ECONOMIST AND STRATEGIST AT JAMES CAPEL INC NOTES IT'S NO LONGER SEEN AS A HEINOUS CRIME TO DEVALUE HE AND OTHERS ARE A LOT MORE POSITIVE ABOUT THE DOLLAR'S OUTLOOK IN 1993 WE AREN'T GOING TO BE SURPRISED AGAIN BY A RENEWED DOWNTURN IN US INTEREST RATES IT DOES LOOK AS IF THE AMERICAN ECONOMY IS GOING TO SHIFT GEARS SAYS MR MAGNUS OF SG WARBURG MOREOVER HE SAYS THAT THE DOWNTURN IN GERMAN INTEREST RATES HAS ALREADY BEGUN AND THAT GERMAN RATES ARE GOING TO FALL SUBSTANTIALLY IN 1993 KEY TO THE STRONG DOLLAR SCENARIO IS THE NARROWING GAP BETWEEN US AND GERMAN SHORTTERM INTEREST RATES JAMES CAPEL FORECASTS THAT DIFFERENTIAL WILL SHRINK FROM ABOUT 570 PERCENTAGE POINTS IN LATE 1992 TO 225 POINTS BY THE END OF 1993 THE DOLLAR IS ALSO POISED TO RISE FROM A TECHNICAL STANDPOINT SAYS CAPEL'S MR DENNIS IN EARLY 1992 PEOPLE JUMPED ON THE DOLLAR RALLY FOR FEAR OF MISSING IT AND GOT STUNG HE SAYS BUT NOW SEEKING TO AVOID PAST MISTAKES THEY ARE TAKING PROFITS ON THE WAY UP TO A LARGE DEGREE THE BULLISH DOLLAR THEME IS AS MUCH A TALE OF EUROPEAN WOE AS AMERICAN CHEER EUROPE ANALYSTS ARGUE IS WROUGHT WITH POLITICAL AND SOCIAL UNCERTAINTIES EASTERN EUROPE COULD EXPLODE THE WAY YUGOSLAVIA HAS THE EUROPEAN COMMUNITY IS FOUNDERING AND THE LEADERS OF BRITAIN FRANCE GERMANY AND ITALY ARE ALL POLITICALLY WEAK THERE IS GOING TO BE A SENSE OF POLITICAL STABILITY IN THE US OVER THE NEXT FOUR YEARS SAYS MR DENNIS WITH ALL THE TENSION TURMOIL AND ECONOMIC GLOOM IN EUROPE THAT'S GOING TO BE A TREMENDOUS PLUS FOR THE DOLLAR MR MAGNUS OF SG WARBURG SAYS INVESTORS ARE GOING TO BE VERY HESITANT ABOUT HOLDING EUROPEAN CURRENCIES BECAUSE OF ECONOMIC AND POLITICAL PARALYSIS IMPORTANTLY THE FOREIGNEXCHANGE MARKET WILL CONCLUDE THAT THE GERMAN PROBLEMS AREN'T CYCLICAL BUT STRUCTURAL SAYS UBS'S MR CHERTKOW NOTING THAT THE COUNTRY WILL NEED TO BORROW ROUGHLY 200 BILLION MARKS IN 1993 OR ABOUT 6 OF ITS GROSS DOMESTIC PRODUCT HE ADDS THAT GERMANY'S DOMESTIC FINANCIAL PROBLEMS AS A RESULT OF REUNIFICATION WILL CONTINUE TO BE EXACERBATED BY THE NEED TO ASSIST GERMANY'S EAST EUROPEAN NEIGHBORS IN ORDER TO MINIMIZE THE SOCIAL UNREST IN THOSE COUNTRIES FROM SPREADING ACROSS ITS BORDERS BY CONTRAST US GROWTH WILL PICK UP INFLATION WILL REMAIN UNDER CONTROL AND THE US CURRENT ACCOUNT DEFICIT WILL BE SMALL THAT SHOULDN'T RESTRAIN THE DOLLAR'S RECOVERY CONTENDS MR CHERTKOW WHAT'S MORE MR VEIT OF BROWN BROTHERS HARRIMAN SAYS THE PAINFUL INDUSTRIAL RESTRUCTURING AMERICA IS GOING THROUGH AT THE MOMENT WILL MAKE THE COUNTRY EVEN MORE COMPETITIVE MANY ANALYSTS PREDICT JAPAN'S ECONOMIC SLUMP WILL INITIALLY WEAKEN THE YEN A BIT BEFORE THE CURRENCY STRENGTHENS LATER IN THE YEAR ON THE BACK OF THE COUNTRY'S HUGE AND EXPANDING CURRENT ACCOUNT SURPLUS ALSO FOLLOWING ANOTHER ROUND OF CUTS IN OFFICIAL INTEREST RATES THE BANK OF JAPAN IS EXPECTED TO KEEP RATES STABLE TO HIGHER OF COURSE THERE ARE RISKS TO THE STRONG DOLLAR SCENARIO THE US RECOVERY COULD PETER OUT OR THE NEW CLINTON ADMINISTRATION COULD GO ON A SPENDING PROGRAM THAT BALLOONS THE US BUDGET DEFICIT OR GERMAN INTEREST RATES MIGHT TAKE A LONG TIME TO TURN DOWN AND NOT FALL VERY MUCH SAYS MR MAGNUS OF SG WARBURG HE ADDS THAT THERE'S ALSO THE LONG SHOT THAT EUROPEANS MIGHT COBBLE TOGETHER A REFLATIONARY ECONOMIC PROGRAM OR THAT ECONOMIC AND MONETARY UNION RECEIVES A MIRACULOUS REBIRTH BY CONTRAST IF YOU HAVE MASS STARVATION IN RUSSIA SHOOTING AND EVERYONE WERE TRYING TO GET THEIR ASSETS OUT WE'D GO INTO DEPRESSION IN WESTERN EUROPE SAYS MR VEIT THAT WOULD MAKE FOR A STRONGER DOLLAR INCREASED JAPANESE POLITICAL CORRUPTION COULD ALSO SPELL A HIGHER DOLLAR IN JAPAN THERE'S ALWAYS THE DANGER THAT THE WRONG PERSON WILL WHEEL THE WRONG BARREL OF CASH INTO THE WRONG ROOM SAYS MR VEIT 9301040033 930104 REPORTS SHOW SOME STRENGTH IN ECONOMY BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE LATEST ECONOMIC INDICATORS SUGGEST THAT THE US ECONOMY STRENGTHENED A BIT IN DECEMBER THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SAID ITS INDEX OF THE HEALTH OF THE MANUFACTURING SECTOR ROSE FOR THE FOURTH MONTH PURCHASING MANAGERS NOTED A PARTICULARLY STRONG INCREASE IN NEW ORDERS AND THE LABOR DEPARTMENT SAID NEW APPLICATIONS FOR UNEMPLOYMENT BENEFITS FELL IN MIDDECEMBER A SIGN THAT EMPLOYERS ARE LETTING UP ON LAYOFFS THE AVERAGE NUMBER OF CLAIMS FILED IN THE PAST FOUR WEEKS WAS THE LOWEST IN THREE YEARS HOWEVER THE COMMERCE DEPARTMENT REPORTED THAT IN NOVEMBER ORDERS FOR FACTORY GOODS FELL 09 TO 24256 BILLION THE FIRST DROP IN THREE MONTHS MAINLY BECAUSE OF SLUMPING ORDERS FOR AIRCRAFT AT THE SAME TIME BACKLOGS OF UNFILLED ORDERS DROPPED TO THE LOWEST LEVEL IN FOUR YEARS VARIOUS READINGS OF THE ECONOMY PARTICULARLY THE REPORT ON DECEMBER EMPLOYMENT WHICH THE LABOR DEPARTMENT IS TO RELEASE FRIDAY WILL INFLUENCE THE ECONOMIC PLAN THAT PRESIDENTELECT CLINTON IS ASSEMBLING MR CLINTON HAS SAID HE WILL WAIT UNTIL THE LAST MOMENT TO DECIDE WHETHER THE ECONOMY NEEDS DEFICITWIDENING FISCAL STIMULUS BUT SEVERAL OF HIS ADVISERS ARE CONCEDING THAT THE CASE FOR SUCH STIMULUS HAS BEEN UNDERCUT BY SIGNS THAT THE ECONOMY IS GAINING STRENGTH IN CONGRESSIONAL TESTIMONY LAST WEEK ECONOMIST PAUL SAMUELSON OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY A NOBEL LAUREATE WHO BACKED MR CLINTON SAID THE NEW PRESIDENT AND CONGRESS SHOULD TRY TO STRIKE A DEAL WITH THE FEDERAL RESERVE IF THE CENTRAL BANK AGREES TO LOWER INTEREST RATES HE SAID THE PRESIDENT AND CONGRESS SHOULD PROMISE IN TURN TO ADOPT TOUGH MEASURES TO CUT THE DEFICIT BUT MR SAMUELSON TOLD THE JOINT ECONOMIC COMMITTEE I HAVE NO CONFIDENCE THAT THE FEDERAL RESERVE WOULD AGREE TO SUCH A SOCIAL COMPACT THAT LED HIM TO ENDORSE A SECONDBEST POLICY OF SHORTTERM FISCAL EXPANSIONISM AS PREFERABLE TO TOLERATING THE SLOW PACE OF THE CURRENT ECONOMIC RECOVERY THE PURCHASING MANAGERS SAID THE OVERALL INDEX ROSE TO 559 UP FROM 55 IN NOVEMBER AND THE STRONGEST READING SINCE MAY A READING ABOVE 50 INDICATES THAT THE MANUFACTURING ECONOMY IS GENERALLY EXPANDING THE ASSOCIATION'S NEW ORDERS INDEX ROSE SHARPLY TO 644 IN DECEMBER THE HIGHEST LEVEL SINCE OCTOBER 1987 IT HAD STOOD AT 608 IN NOVEMBER THIS HIGH RATE OF NEW ORDERS COUPLED WITH THE LOW LEVEL OF INVENTORIES AND DECLINING PRICES SHOULD BE SUFFICIENT TO SUSTAIN ECONOMIC GROWTH INTO 1993 SAID ROBERT BRETZ DIRECTOR OF PURCHASING FOR PITNEY BOWES INC AND CHAIRMAN OF THE ASSOCIATION'S SURVEY COMMITTEE THE SURVEY RESULTS WHICH WERE SCHEDULED TO BE ISSUED TODAY WERE RELEASED THURSDAY AFTER THEY WERE DISTRIBUTED ACCIDENTALLY TO NEWS ORGANIZATIONS THE PURCHASING MANAGERS' DATA ARE MORE TIMELY BUT FAR LESS DETAILED AND COMPLETE THAN THE GOVERNMENT'S THE COMMERCE DEPARTMENT'S REPORT OF A 09 DECLINE IN ORDERS FOR MANUFACTURED GOODS IN NOVEMBER FOLLOWED INCREASES OF 2 IN OCTOBER AND 13 IN SEPTEMBER EXCLUDING AIRCRAFT AND OTHER TRANSPORTATION GEAR NEW ORDERS WERE UP 05 IN NOVEMBER ORDERS FOR DURABLE GOODS THOSE INTENDED TO LAST THREE YEARS FELL 09 AS THE DEPARTMENT REPORTED EARLIER ORDERS FOR NONDURABLES ROSE A SLIGHT 01 AFTER DECLINING 09 IN OCTOBER TOTAL SHIPMENTS OF MANUFACTURED GOODS INCREASED INVENTORIES DROPPED FOR THE THIRD MONTH IN A ROW IN A TROUBLING PORTENT BACKLOGS OF UNFILLED ORDERS DROPPED 1 TO 4488 BILLION THE 14TH DECLINE FOR THE MEASURE IN THE PAST 15 MONTHS BACKLOGS ARE NOW AT THE LOWEST LEVEL SINCE NOVEMBER 1988 THE RECENT DECLINE PRIMARILY REFLECTS SLUMPING ORDERS FOR AIRCRAFT AND AIRCRAFT PARTS SHIPS AND TANKS THE LABOR DEPARTMENT SAID THE NUMBER OF NEW CLAIMS FOR STATE UNEMPLOYMENT BENEFITS FELL A SEASONALLY ADJUSTED 28000 DURING THE WEEK ENDED DEC 19 TO 322000 THE FOURWEEK MOVING AVERAGE OF INITIAL CLAIMS WHICH SOME ECONOMISTS TRACK AS A MORE RELIABLE READING OF THE LABOR MARKET THAN THE WEEKLY NUMBER FELL TO 341250 ITS LOWEST LEVEL SINCE NOVEMBER 1989 THE NUMBER OF CLAIMS FILED UNDER A SPECIAL EMERGENCY PROGRAM ENACTED BY CONGRESS IN THE SUMMER TOTALED 24625 UP FROM 24313 A WEEK EARLIER WHAT YOU'RE SEEING IS THAT THE LABOR MARKET IS BECOMING MORE FIRM AND THINGS ARE IMPROVING SAYS SAM KAHAN CHIEF ECONOMIST AT FUJI SECURITIES INC DOES IT MEAN THE ECONOMY IS BOOMING NO DOES IT MEAN SOLID GROWTH YES ANALYSTS CAUTIONED THOUGH THAT THE CONTINUED DEARTH OF HELPWANTED ADS SUGGESTS THAT JOBS REMAIN HARD TO FIND FOR THE WEEK ENDED DEC 12 2776000 PERSONS WERE RECEIVING STATE UNEMPLOYMENT BENEFITS DOWN 87000 FROM THE PREVIOUS WEEK HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9301040032 930104 LEISURE & ARTS TELEVISION WILLIAMS'S DUELING NEW ORLEANS WOMEN BY ROBERT GOLDBERG WE ARE ALL CIVILIZED TENNESSEE WILLIAMS ONCE WROTE WHICH MEANS THAT WE ARE ALL SAVAGES AT HEART BUT OBSERVING A FEW AMENITIES OF CIVILIZED BEHAVIOR IN MORE THAN 70 PLAYS WILLIAMS ASSEMBLED A GREAT SAD UNIVERSE OF CHARACTERS GLUM AND TWISTED LONELY BATTERED AND CRIPPLED HIS GOTHIC SOUTH WAS A WORLD OF DELICATE BEAUTY AND BRUTAL VIOLENCE THE LATTER ALWAYS SET TO STOMP THE FORMER TO BITS IN THE LATE 1940S WILLIAMS DECLARED THAT HE HAD USED UP ALL THE NICE THINGS I HAVE TO SAY ABOUT PEOPLE IN THE GLASS MENAGERIE WHAT CAME NEXT WERE PLAYS LIKE SUDDENLY LAST SUMMER TAUT CHILLING WORKS OF WARPED SENSUALITY AND SILKY EVIL LIKE MANY OF MR WILLIAMS'S PLAYS SUDDENLY LAST SUMMER WENT THROUGH SEVERAL INCARNATIONS FROM ONEACT DRAMA TO FULLLENGTH MOVIE SCREENPLAY FOR THE 1959 VERSION WITH ITS ALLSTAR CAST OF ELIZABETH TAYLOR KATHARINE HEPBURN MONTGOMERY CLIFT NOW IT RETURNS TO ITS POWERFUL ONEACT FORMAT ON PBS'S GREAT PERFORMANCES WEDNESDAY 91030 PM EST CHECK LOCAL LISTINGS WITH A CAST EVERY BIT AS DECADENT AND INVOLVING AS THE MOVIE'S MAGGIE SMITH NATASHA RICHARDSON AND ROB LOWE SET ON THE ESTATE OF A WELLTODO NEW ORLEANS WIDOW VIOLET VENABLE THIS SUDDENLY LAST SUMMER OPENS ON SHOTS OF DENSE HOTHOUSE VEGETATION LUSH AND GREEN AND DEADLY VENUS' FLYTRAPS AND SLITHERING SNAKES IN THIS GARDEN THE SINS ARE ORIGINAL AND THEY KEEP ON COMING MRS VENABLE HAS CALLED A YOUNG PSYCHIATRIST TO HER HOME A YOUNG DR CUKROWICZ DR SUGAR TO DECIDE WHETHER HER NIECE CATHERINE IS IN HER RIGHT MIND CATHERINE SHE SAYS HAS BEEN BABBLING SMASHING MY SON'S REPUTATION IT SEEMS THAT HER BEAUTIFUL YOUNG NIECE HAS BEEN TELLING TALES BIZARRE TALES ABOUT HER VOYAGE TO EUROPE THE PREVIOUS SUMMER WITH MRS VENABLE'S SON SEBASTIAN MOST SHOCKING OF ALL IS CATHERINE'S DESCRIPTION OF SEBASTIAN'S MYSTERIOUS DEATH IN THE SPANISH BEACH TOWN OF CABEZA DE LOBO MRS VENABLE HOLDS CATHERINE RESPONSIBLE FOR THAT DEATH SHE WANTS DR SUGAR TO DECLARE HER UNSTABLE IN FACT SHE'S WILLING TO GRANT HIS FOUNDATION THOUSANDS OF DOLLARS IF HE WILL PERFORM A LOBOTOMY ON CATHERINE SO HER OUTRAGEOUS SECRET WILL BE EXPUNGED ONCE AND FOR ALL IN A SENSE THE CONFRONTATION BETWEEN CATHERINE AND MRS VENABLE IS A BATTLE OF DUELING BIOGRAPHERS TWO WOMEN EACH WITH THEIR OWN VERSION OF THE PAST EACH TRYING TO DEFINE A MAN'S LIFE MRS VENABLE'S IS THE STORY OF SEBASTIAN THE GREAT ARTIST A POET WHOSE LIFE WAS HIS OCCUPATION IT'S THE TALE OF A GRANDE DAME AND HER OBSESSIVE DEVOTION TO HER ONLY SON I WAS ACTUALLY THE ONLY ONE IN HIS LIFE WE WERE A FAMOUS COUPLE SEBASTIAN AND VIOLET ARE AT THE RITZ IN PARIS SEBASTIAN AND VIOLET HAVE TAKEN A HOUSE FOR THE SEASON AT BIARRITZ WE CONSTRUCTED OUR DAYS WE WOULD CARVE OUT EACH DAY OF OUR LIVES LIKE A PIECE OF SCULPTURE WE LEFT BEHIND A TRAIL OF DAYS LIKE A GALLERY OF SCULPTURES THE DISTRAUGHT CATHERINE TELLS A MUCH BLEAKER TALE OF A SAD AND LONELY AESTHETE WHO HAS HAD A FALLING OUT WITH HIS MOTHER ALL OF US ARE CHILDREN IN A VAST KINDERGARTEN SEBASTIAN TELLS HER TRYING TO SPELL GOD'S NAME WITH THE WRONG SET OF ALPHABET BLOCKS SUDDENLY LAST SUMMER IS AN ODD PLAY THERE'S LITTLE ACTION MOST OF IT TAKES PLACE IN THE PAST AND ALMOST ALL OF IT REVOLVES AROUND A CHARACTER WHO NEVER APPEARS ON STAGE YET AS MR WILLIAMS ONCE NOTED THIS WORK HAS PASSAGES THAT ARE AS WELLWRITTEN AS ANYTHING I'VE DONE AS IT BUILDS AND BUILDS TO THE EXPLOSIVE ENDING THE REVELATION OF THE SECRET OF SEBASTIAN'S DEATH IT HAS AN INEXORABLE DRIVE DIRECTOR RICHARD EYRE THE NEW HEAD OF THE NATIONAL THEATRE OF BRITAIN MANAGES TO WRING ALMOST EVERY DROP OF DRAMA OUT OF THE PLAY THIS IS IN FACT AS POLISHED AND EXCITING A PIECE OF QUALITY TELEVISION AS WE'VE BEEN TREATED TO IN AWHILE IT'S 72 NEARLY FLAWLESS MINUTES 72 MINUTES OF HIGH TENSION UNFORTUNATELY SUDDENLY LAST SUMMER IS A 75MINUTE PLAY AND IN THE LAST THREE MINUTES IT SUDDENLY LURCHES TO A STRANGELY UNSATISFYING ENDING YOU COULD SAY THIS WORK PLAYS LIKE A VERY LONG SHAGGYDOG STORY ALL LEADING TO A DUBIOUS IF THEMATICALLY JUSTIFIABLE PUNCH LINE THEN IT HAS NOWHERE TO GO THE FAULT LIES MORE WITH THE AUTHOR THAN THE PRODUCTION WILLIAMS DIDN'T KNOW HOW TO CLOSE THIS ONE OUT WHAT MR EYRE'S PRODUCTION OF SUDDENLY LAST SUMMER OFFERS ABOVE ALL IS SOME VERY FINE ACTING IN A SERIES TITLED GREAT PERFORMANCES THIS IS ONE OF THE FEW SHOWS IN WHICH THE PERFORMANCES REALLY DO STAND OUT MR LOWE IS THE LEAST OF THE TRIO HIS EARNEST YOUNG DOCTOR OCCASIONALLY STIFF BUT ALWAYS STALWART MS SMITH DELIVERS A BRAVURA TURN AS THE MOTHER OBSESSED WITH HER SON'S MEMORYSTILL DEVOTED TO HIS ACHIEVEMENTS STILL CRUSHED BY HIS DESERTION IF SHE DOESN'T WIN AWARDS FOR THIS ONE THERE IS NO JUSTICE AND MS RICHARDSON IS PALE AND LUMINOUS AND OHSOSEDUCTIVE AS CATHERINE AT ITS CORE SUDDENLY LAST SUMMER IS THE STORY OF MANY SEDUCTIONS SEDUCTIONS TOO NUMEROUS TO COUNT THE MAIN CHARACTERS ALL HAVE MONEY LOVE OR FRIENDSHIP DANGLED IN FRONT OF THEM THEN YANKED AWAY IN FACT MOST OF THE PLAY REVOLVES AROUND THE TWO WOMEN BOTH TRYING TO SEDUCE DR SUGAR AND BY EXTENSION THE AUDIENCE ONTO THEIR SIDE IN HIS EARLY SHORT STORY THE NIGHT OF THE IGUANA WILLIAMS FIRST LABELED A VISION THAT WOULD SHAPE MUCH OF HIS WORK HE SPOKE OF THE ENORMOUS GROTESQUERIE OF THE WORLD WHAT THIS PRODUCTION UNDERSTANDS IS THAT THE GROTESQUE CAN BE THE MOST INSIDIOUSLY SEDUCTIVE OF ALL 9301040031 930104 NOVEMBER BUILDING AWARDS FELL 10 AFTER 12 SURGE IN OCTOBER DODGE SAYS BY STEPHANIE FERRELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CONTRACTS FOR NEW CONSTRUCTION FELL 10 IN NOVEMBER LED BY A SHARP DECLINE IN NONRESIDENTIAL CONSTRUCTION HOWEVER CONTRACTS FOR THE FIRST 11 MONTHS OF 1992 WERE STILL 7 AHEAD OF YEAREARLIER LEVELS ACCORDING TO FW DODGE MCGRAWHILL INC'S FORECASTING UNIT THE DODGE INDEX OF CONSTRUCTION CONTRACTS WHICH USES 1987 AS A BASE YEAR OF 100 REGISTERED 92 IN NOVEMBER ON A SEASONALLY ADJUSTED BASIS DOWN FROM OCTOBER'S RESTATED 102 CONTRACTS HAD SURGED 12 IN OCTOBER THE LARGEST SINGLEMONTH RISE SINCE APRIL 1991 AT THE LATEST NUMBER THE INDEX IS ABOUT THE SAME LEVEL REPORTED IN THE MAYSEPTEMBER PERIOD ALL THREE CONSTRUCTION SECTORS DECLINED IN NOVEMBER LED BY A 17 FALL IN NONRESIDENTIAL BUILDING GIVEN THE TENUOUS QUALITY OF THIS RECOVERY OVER THE PAST YEAR AND A HALF A SETBACK FROM OCTOBER'S STRONG SHOWING WAS NOT SURPRISING SAID ROBERT A MURRAY VICE PRESIDENT OF ECONOMIC AFFAIRS AT FW DODGE IT STILL REMAINS TO BE SEEN JUST HOW DURABLE THE CURRENT UPTURN WILL BE STILL HE SAID THE MODEST IMPROVEMENT FOR 1992 STANDS IN CONTRAST TO THE PERFORMANCE OF 1990 AND 1991 WHICH SHOWED ANNUAL DECLINES OF 9 AND 6 RESPECTIVELY THE 17 FALL IN NONRESIDENTIAL CONSTRUCTION CONTRACTS IN NOVEMBER WAS THE LARGEST PLUNGE OF THE YEAR MANUFACTURING CONTRACTS FELL SHARPLY COMPARED WITH AN UNUSUALLY HIGH RATE IN OCTOBER AND INSTITUTIONAL BUILDING'S RECENT REBOUND PROVED SHORTLIVED COMMERCIAL BUILDING CONTRACTS REMAIN DEPRESSED ALTHOUGH STORE CONSTRUCTION EXPERIENCED ITS THIRD CONSECUTIVE INCREASE NONBUILDING CONSTRUCTION PUBLIC WORKS AND UTILITIES FELL 10 IN NOVEMBER BECAUSE OF A DECREASE IN VOLUME OF NEW ELECTRIC POWER PLANTS EXCLUDING THE UTILITIES AREA NONBUILDING CONSTRUCTION ROSE 1 IN HIGHWAY AND BRIDGE IMPROVEMENTS WITH THE CONTINUED EMPHASIS ON INFRASTRUCTURE SHOWN BY THE INCOMING CLINTON ADMINISTRATION TRANSPORTATIONRELATED PUBLIC WORKS WILL LIKELY PLAY A MORE SIGNIFICANT ROLE IN HOW THE CONSTRUCTION RECOVERY PROCEEDS SAID MR MURRAY RESIDENTIAL CONSTRUCTION FELL 4 IN NOVEMBER AS SINGLEFAMILY HOUSING SHOWED A SLIGHT DECLINE GIVEN IMPROVING CONSUMER CONFIDENCE AND GENERALLY LOW MORTGAGE RATES THE PACE OF SINGLEFAMILY ACTIVITY IS LIKELY TO PICK UP IN THE QUARTERS AHEAD DODGE SAID FOR THE FIRST 11 MONTHS OF 1992 THE 7 GAIN IN TOTAL CONSTRUCTION WAS DUE ESSENTIALLY TO A STRENGTHENING HOUSING MARKET DODGE SAID RESIDENTIAL CONSTRUCTION ADVANCED 16 DURING THIS PERIOD WHILE NONBUILDING CONSTRUCTION SHOWED A MORE SUBDUED 4 RISE NONRESIDENTIAL CONSTRUCTION COULD OFFER NO SUPPORT AT ALL SLIPPING 1 FROM THE JANUARYNOVEMBER PERIOD A YEAR AGO ALL FIVE OF THE NATION'S MAJOR REGIONS SHOWED IMPROVEMENTS DURING THE 11MONTH PERIOD NORTH CENTRAL'S ACTIVITY LED THE INCREASES WITH A 13 GAIN WHILE THE SOUTH CENTRAL AREA FOLLOWED AT 9 THE SOUTH ATLANTIC AND NORTHEAST REGIONS BOTH INCREASED 6 THE WEST ROSE 3 9301040030 930104 MOVIES THREE HOLLYWOOD STUDIOS WAGE CLOSE FIGHT FOR BOXOFFICE CROWN BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD TIME WARNER INC WALT DISNEY CO AND SONY CORP RAN AN UNUSUALLY TIGHT RACE FOR 1992 BOXOFFICE SUPREMACY WITH EACH COMPANY'S MOVIE OPERATIONS COMMANDING ABOUT A 20 SHARE OF THE MARKET DAILY VARIETY'S BOXOFFICE SEER AD MURPHY LATE LAST WEEK PROJECTED THAT WARNER BROS WOULD WIN THE RACE WITH DISNEY LESS THAN ONE PERCENTAGE POINT BEHIND WHEN COMPUTING MARKET SHARE MR MURPHY DOESN'T COMBINE SONY'S TWO STUDIOS COLUMBIA AND TRISTAR BECAUSE THEY USE SEPARATE DISTRIBUTION PIPELINES IF HE DID SONY WOULD LIKELY BE NO 3 WITH MORE THAN 19 OF THE MARKET THE DOWNTOTHEWIRE MARKETSHARE BATTLE IN WHICH THE WINNER GAINS NOTHING MORE THAN BRAGGING RIGHTS HAS BEEN THE FOCUS OF A GREAT DEAL OF ATTENTION THIS YEAR WARNER AND DISNEY IN PARTICULAR HAVE BECOME HOLLYWOOD'S TWO POWERHOUSES AS THEIR SINGLE DISTRIBUTION UNITS HAVE TOGETHER COMBINED FOR AN EXTRAORDINARY AMOUNT OF THE TOTAL MOVIE BUSINESS THE WARNER AND DISNEY SHARES ARE UP SIGNIFICANTLY FROM A YEAR AGO WHEN EACH HELD LESS THAN 14 OF THE MARKET BARRY REARDON WARNER'S PRESIDENT OF DISTRIBUTION SAID YESTERDAY THAT HIS NUMBERS INCLUDING THE WEEKEND'S BOXOFFICE ESTIMATES SUGGESTED THAT HIS STUDIO WOULD INDEED WIN NARROWLY OVER DISNEY PERHAPS BY AS LITTLE AS FOURTENTHS OF A PERCENTAGE POINT THE RACE HAS BEEN SO CLOSE IN PART BECAUSE ALL THREE COMPANIES HAD MOVIES PLAYING STRONGLY AT THE BOX OFFICE RIGHT THROUGH THE LAST DAY OF THE YEAR DISNEY'S ALADDIN FOR EXAMPLE TOOK IN 322 MILLION DURING THE SEVENDAY PERIOD BETWEEN CHRISTMAS AND NEW YEAR'S THAT'S THE MOST A MOVIE HAS TAKEN IN DURING THAT IMPORTANT PERIOD THE PREVIOUS RECORDHOLDER WAS TWENTIETH CENTURY FOX'S HOME ALONE IN 1990 WHICH TOOK IN 291 MILLION IN SEVEN DAYS THE ANIMATED ALADDIN WAS NOT SURPRISINGLY THE NO 1 MOVIE OF THE WEEKEND CHARTING A GROSS OF AT LEAST 15 MILLION COLUMBIA'S A FEW GOOD MEN WHICH STARS TOM CRUISE AND JACK NICHOLSON WAS THE NO 2 MOVIE TAKING IN 14 MILLION AND WARNER HAD THE NOS 4 AND 5 MOVIES OF THE WEEKEND WITH THE BODYGUARD AND FOREVER YOUNG ALTHOUGH THE YEAR TECHNICALLY ENDED THURSDAY MANY ANALYSTS COUNTED THE ENTIRE WEEKEND AS PART OF 1992'S BOXOFFICE TAKE ALADDIN NOW HAS A TOTAL GROSS OF AT LEAST 115 MILLION THE MOVIE WILL EVENTUALLY GROSS MORE THAN BEAUTY AND THE BEAST DISNEY'S 1991 HIT THAT NOW STANDS AS THE HIGHESTGROSSING ANIMATED FILM OF ALL TIME AFTER THE HOLIDAYS LAST YEAR BEAUTY HAD TAKEN IN JUST 80 MILLION IT'S IN A WORLD OF ITS OWN RIGHT NOW SAID DICK COOK DISNEY'S PRESIDENT OF DISTRIBUTION ECHOING THE LYRICS OF ONE OF THE FILM'S MAIN SONGS I DON'T THINK THERE'S GOING TO BE ANY STOPPING IT FOR A WHILE COLUMBIA'S A FEW GOOD MEN WHICH HAD BEEN THE NO 1 MOVIE SINCE ITS DEBUT DEC 11 HAS NOW GROSSED 772 MILLION FOX'S HOME ALONE 2 LOST IN NEW YORK WAS THE NO 3 PICTURE OF THE WEEKEND GROSSING 104 MILLION ITS TOTAL SO FAR IS 147 MILLION FOX SAID THE BODYGUARD THE SURPRISE HIT OF THE SEASON TOOK IN 87 MILLION FOR A TOTAL OF 882 MILLION FOREVER YOUNG THE MEL GIBSON DATE MOVIE GROSSED 77 MILLION FOR A TOTAL OF 336 MILLION POSTING LESSSTELLAR PERFORMANCES AT THE BOX OFFICE FOR THE YEAR WERE NEWS CORP'S FOX WITH ABOUT 14 UNIVERSAL A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA WITH ROUGHLY 121 PARAMOUNT PICTURES A UNIT OF PARAMOUNT COMMUNICATIONS INC HAD SHARE OF 101 ACCORDING TO DAILY VARIETY'S MR MURPHY BESIDES THE BODYGUARD WARNER'S BIGGEST MOVIES OF THE YEAR WERE BATMAN RETURNS AND LETHAL WEAPON 3 DISNEY ACHIEVED ITS GROSS BY HITTING WITH FILMS LIKE ALADDIN AND SISTER ACT SONY'S BIGGEST HITS WERE A LEAGUE OF THEIR OWN BRAM STOKER'S DRACULA AND BASIC INSTINCT THE CAROLCO PICTURES INC THRILLER THAT IT DISTRIBUTED WARNER DISNEY AND SONY'S SONY PICTURES UNIT EACH RELEASED ABOUT 20 TO 25 MOVIES IN 1992 AND EACH COMPANY'S LINEUP OF FILMS GROSSED AROUND THE 900 MILLION MARK STUDIOS KEEP ROUGHLY 50 OF TOTAL BOXOFFICE GROSSES THE OTHER HALF GOES TO THEATER CHAINS TOTAL BOXOFFICE REVENUE FOR ALL MOVIE COMPANIES IS EXPECTED TO COME IN AROUND 5 BILLION 9301040029 930104 YEAREND REVIEW OF STOCK MARKET INVESTORS PILING INTO MUTUAL FUNDS ARE REAPING MODEST RETURNS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS POURED RECORD AMOUNTS OF MONEY INTO MUTUAL FUNDS LAST YEAR BUT REAPED ONLY MODEST GAINS IN RETURN THE AVERAGE STOCK MUTUAL FUND CLIMBED JUST 789 IN THE YEAR THROUGH DEC 23 SLIGHTLY BEHIND THE STANDARD & POOR'S 500STOCK INDEX AND FAR LESS THAN 1991'S SPECTACULAR 3561 AVERAGE GAIN DESPITE LAST YEAR'S LACKLUSTER RESULTS INVESTORS CONTINUED TO SHOVEL MONEY INTO MUTUAL FUNDS IN THE YEAR THROUGH NOVEMBER STOCK FUNDS ATTRACTED 686 BILLION EASILY BEATING 1991'S RECORD INFLOW OF 383 BILLION BOND FUNDS MEANWHILE PULLED IN 884 BILLION IN LAST YEAR'S FIRST 11 MONTHS MORE THAN ANY OTHER CALENDAR YEAR EXCEPT 1986 SMALLCOMPANY STOCK FUNDS WERE ONCE AGAIN THE PERFORMANCE LEADERS AMONG DIVERSIFIED STOCK FUNDS IN 1992 SURGING 977 BUT WHILE THE BIG WINNERS IN 1991 WERE SMALLSTOCK FUNDS THAT BOUGHT GROWTH COMPANIES WITH RAPIDLY RISING PROFITS LAST YEAR'S STAR PERFORMERS SPECIALIZED IN VALUE STOCKS THAT APPEAR CHEAP BASED ON CORPORATE ASSETS OR CURRENT EARNINGS AMONG FUNDS BUYING LARGERCOMPANY STOCKS VALUE ALSO OUTSTRIPPED GROWTH POPULAR VALUE FUNDS LIKE AFFILIATED FUND FIDELITY EQUITYINCOME FUND MUTUAL SHARES AND VANGUARD WINDSOR FUND POSTED DOUBLEDIGIT GAINS MEANWHILE SOME OF THE US'S LARGEST GROWTHSTOCK FUNDS LIKE AIM WEINGARTEN FUND AND TWENTIETH CENTURY SELECT INVESTORS FAILED TO MAKE MONEY IN THE YEAR THROUGH DEC 23 THE BIGGEST LOSSES HOWEVER WENT TO THOSE WHO VENTURED ABROAD OR DABBLED IN CERTAIN HARDHIT SECTOR FUNDS SUCH AS THOSE SPECIALIZING IN GOLD HEALTH CARE AND ENVIRONMENTAL SERVICES STOCKS FOREIGNSTOCK FUNDS LAGGED BEHIND US STOCK FUNDS FOR THE FOURTH YEAR IN A ROW ACCORDING TO FUND RESEARCHERS LIPPER ANALYTICAL SERVICES TUMBLING AN AVERAGE OF 468 WITH JAPANESE FUNDS ESPECIALLY HARD HIT ALSO HURT IN 1992 WERE SHORTTERM GLOBAL INCOME FUNDS WHICH INVEST IN US AND FOREIGN SHORTTERM BONDS SEPTEMBER'S EUROPEAN CURRENCY TURMOIL WREAKED HAVOC WITH THESE FUNDS THE SHORTTERM GLOBAL INCOME FUNDS WERE JUST A REAL SHAME SAYS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER THERE'S A REAL UGLY HISTORY IN THE MUTUAL FUND INDUSTRY OF PUSHING HALFBAKED FUND IDEAS THAT DON'T WORK OUT WELL HE COMPARES THE GLOBAL INCOME FUNDS WITH EARLIER DEBACLES LIKE THE HIGHYIELD JUNK BOND FUNDS THE OPTION INCOME FUNDS AND THE GOVERNMENTPLUS FUNDS BUT WHILE GLOBAL BOND FUNDS SUFFERED US BOND FUNDS PERFORMED REASONABLY WELL THESE FUNDS NOTCHED UP AVERAGE GAINS OF 752 ON PAR WITH THE RETURNS EARNED BY STOCK FUND INVESTORS HOW WILL FUND INVESTORS FARE IN 1993 MORNINGSTAR'S MR PHILLIPS THINKS SMALLSTOCK FUNDS AND VALUE FUNDS WILL CONTINUE TO SHINE I ALSO THINK INTERNATIONAL IS GOING TO COME BACK HE SAYS EUROPEAN STOCKS ARE REALLY VERY CHEAP RIGHT NOW 9301040028 930104 BUSINESS BRIEF ALLMERICA PROPERTY & CASUALTY COS BEACON SUBSIDIARY TO BE SOLD TO OHIO UNIT OF WESTFIELD ALLMERICA PROPERTY & CASUALTY COS WORCESTER MASS SAID IT AGREED TO SELL BEACON INSURANCE CO OF AMERICA A UNIT OF ALLMERICA'S HANOVER INSURANCE CO TO WESTFIELD COS' OHIO FARMERS INSURANCE CO FOR 897 MILLION BEACON ACCOUNTS FOR ABOUT 65 MILLION OF ALLMERICA'S 17 BILLION IN ANNUAL PREMIUMS THE COMPANY SAID COMPLETION OF THE TRANSACTION REQUIRES APPROVAL FROM OHIO'S SUPERINTENDENT OF INSURANCE JACK KELLY GENERAL COUNSEL FOR ALLMERICA SAID THAT THE COMPANY HAD ANNOUNCED IT WAS STUDYING VARIOUS OPTIONS WITH REGARD TO ITS UNITS AND THAT IT RECEIVED A NUMBER OF INQUIRIES ABOUT BEACON BECAUSE THE OHIO PROPERTY AND CASUALTY MARKET IS A GOOD ONE HE SAID ALLMERICA WILL USE THE PROCEEDS FOR GENERAL CORPORATE PURPOSES 9301040027 930104 YEAREND REVIEW OF MARKETS MERGER ACTIVITY FALLS FOR FOURTH STRAIGHT YEAR BUT SOME SAY THE WORST IS FINALLY OVER BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL US MERGER ACTIVITY SUFFERED A FOURTH STRAIGHT ANNUAL DECLINE IN 1992 BUT SOME INVESTMENT BANKERS BELIEVE THE WORST IS OVER AND THE PACE COULD PICK UP IN 1993 AS EXECUTIVES GAIN CONFIDENCE THAT THE ECONOMY WILL KEEP GROWING BRUCE FIEDOREK HEAD OF MERGERS AT MORGAN STANLEY & CO NOTES THAT LAST YEAR'S 97 DECLINE IN ANNOUNCED US DEALS WAS LESS DRAMATIC THAN DROPS OF 39 IN 1990 AND 23 IN 1991 IT SEEMS TO HAVE STABILIZED THERE HAS BEEN A STRING OF ANNOUNCEMENTS IN THE PAST 60 DAYS AND I WOULD SAY THE MARKET TONE IS BETTER HE ADDS STEVEN RATTNER COHEAD OF INVESTMENT BANKING AT LAZARD FRERES & CO AGREES ONE HAS THE SENSE THAT THE DECLINE IS BOTTOMING OUT THERE IS GREATER LIQUIDITY IN THE FINANCIAL MARKETS AND GREATER CONFIDENCE ON THE PART OF COMPANIES THERE IS LESS FEELING THAT THE WORLD IS COMING TO AN END AND YOU'D BETTER NOT BUY ANYTHING BUT OVERSEAS DEALS DOMINATED THE LARGEST ACQUISITIONS COMPLETED LAST YEAR WITH SIX OF THE TOP 10 INVOLVING COMPANIES OUTSIDE THE US LED BY THE 927 BILLION PUBLISHING MERGER OF BRITISHBASED REED INTERNATIONAL PLC AND ELSEVIER NV OF THE NETHERLANDS IN THE US THE MOST STRIKING ASPECT OF LAST YEAR'S ACTIVITY WAS A COMPLETE ABSENCE OF BIG HOSTILE BIDS THE MOST RECENT ONE WAS THE 789 BILLION TAKEOVER IN 1991 OF NCR CORP BY AMERICAN TELEPHONE & TELEGRAPH CO BUT IT TOOK AT&T SIX MONTHS TO BREAK DOWN NCR'S DEFENSES AND MANY CORPORATE EXECUTIVES WANT TO AVOID THAT KIND OF HASSLE WITH CORPORATE RAIDERS AND GIANT LEVERAGED BUYOUTS ALSO MOSTLY GONE THE PACE OF MERGERS HAS BEEN DRIVEN MAINLY BY COMPANIES' QUEST FOR GROWTH PLUS THE SORT OF CONSOLIDATION THAT OCCURS INEVITABLY FROM THE EBB AND FLOW OF PARTICULAR INDUSTRIES FOR EXAMPLE JUST AS THE OIL BUSINESS WENT THROUGH A SPATE OF MEGAMERGERS WHEN OIL PRICES CRASHED FROM 36 TO 12 A BARREL IN THE EARLY 1980S THE DEFENSE INDUSTRY IS UNDERGOING A BIG CONSOLIDATION AS THE US DEFENSE BUDGET SHRINKS LAST YEAR GENERAL ELECTRIC CO ANNOUNCED PLANS TO SELL ITS AEROSPACE BUSINESS TO MARTIN MARIETTA CORP FOR 305 BILLION AND GENERAL DYNAMICS CORP IS SELLING ITS FIGHTERJET BUSINESS TO LOCKHEED CORP FOR 153 BILLION THE DEFENSE CONSOLIDATION IS NOT EVEN CLOSE TO BEING OVER SAID MICHAEL KOENEKE HEAD OF MERGERS AT FIRST BOSTON CORP THE FLUX OF TECHNOLOGICAL CHANGE IS DRIVING DEALS IN THE TELECOMMUNICATIONS INDUSTRY ONE OF THE YEAR'S BIGGEST WAS SPRINT CORP'S PLAN TO ACQUIRE CENTEL CORP FOR 3 BILLION TO CREATE THE ONLY COMPANY OFFERING LONG DISTANCE LOCAL AND MOBILE PHONE SERVICE A FEW MONTHS LATER AT&T ANNOUNCED A PLAN TO COMBINE ITS LONGDISTANCE NETWORK WITH MOBILE PHONE SERVICE IN A MARRIAGE THAT COULD EFFECTIVELY PUT MA BELL BACK IN THE LOCAL PHONE BUSINESS AT&T IS NEGOTIATING TO BUY A ONETHIRD STAKE IN MCCAW CELLULAR COMMUNICATIONS INC FOR 38 BILLION SOME OF THE YEAR'S BIGGEST DEALS HAVE BEEN SPINOFFS SOMETIMES KNOWN AS DEMERGERS IN WHICH A COMPANY DISTRIBUTES STOCK IN ONE OR MORE OF ITS BUSINESSES TO SHAREHOLDERS SEPARATING THE OPERATIONS FROM THE PARENT LED THIS YEAR BY THE 199 BILLION SPINOFF BY UNION CARBIDE OF ITS PRAXAIR INC INDUSTRIALGAS BUSINESS THE SPINOFF VOGUE FOLLOWS WALL STREET'S PREFERENCE FOR COMPANIES THAT ARE PURE PLAYS IN ONE INDUSTRY OR A SMALL GROUP OF RELATED BUSINESSES AS OPPOSED TO THE MULTIINDUSTRY CONGLOMERATES ASSEMBLED IN THE 1960S AND 1970S ALONG THE SAME LINE WITH DIVERSIFICATION OUT OF STYLE MANY COMPANIES ARE INSTEAD SEEKING TO GROW BY MAKING ACQUISITIONS OF OVERSEAS COMPANIES IN THE SAME BUSINESS PHILIP MORRIS COS WHICH HAS DIVERSIFIED FROM TOBACCO INTO FOOD IN THE US IS TRYING TO EXPAND ITS NONUS FOOD BUSINESS PHILIP MORRIS LAST YEAR MADE A 149 BILLION BID FOR FREIA MARABOU AS A NORWEGIAN CANDY COMPANY AND CAMPBELL SOUP CO LAUNCHED A 5872 MILLION HOSTILE TAKEOVER BID FOR TWOTHIRDS OF ARNOTTS LTD AN AUSTRALIAN COOKIE COMPANY THERE'S BEEN A HUGE FOCUS BY CONSUMER PRODUCTS COMPANIES ON BEING MORE GLOBAL PEOPLE ARE MORE COMFORTABLE INVESTING OVERSEAS WHERE THEY CAN GROW BY ENTERING NEW MARKETS SAYS SUSAN SALTZBART COHEAD OF CROSSBORDER MERGERS AT BANKERS TRUST NEW YORK CORP BIG LEVERAGED BUYOUTS HAVEN'T COMPLETELY DISAPPEARED KOHLBERG KRAVIS ROBERTS & CO ACQUIRED THE REINSURANCE BUSINESS OF AETNA LIFE & CASUALTY CO FOR 143 BILLION IN SEPTEMBER AND ONLY TWO MONTHS LATER ANNOUNCED PLANS TO SELL A 24 STAKE AT A 180 PROFIT THE VOLUME OF US BUYOUTS ANNOUNCED LAST YEAR ACTUALLY ROSE 61 TO 97 BILLION BUT THAT REMAINS A TINY FRACTION OF THE RECORD 936 BILLION IN 1988 ONE INVESTMENT BANKER SAID HE IS SURPRISED THAT MORE COMPANIES AREN'T USING THEIR OWN HIGHPRICED STOCK AS A CHEAP SOURCE OF FINANCING FOR ACQUISITIONS DURING THE CURRENT BULL MARKET THE EXPLANATION HE BELIEVES IS A BACKLASH AGAINST AGGRESSIVE EXPANSION VIA TAKEOVER AFTER THE EXPLOSION OF THE LATE 1980S SOME INVESTMENT BANKERS BELIEVE THAT MORE ASSET SALES WILL BE GENERATED NOT BY CORPORATE RAIDERS BUT BY THE INCREASED ACTIVISM OF CORPORATE DIRECTORS AND LARGE INSTITUTIONAL INVESTORS PARTICULARLY WHEN A CHIEF EXECUTIVE IS REPLACED MR KOENEKE OF FIRST BOSTON SAYS THIS CORPORATE GOVERNANCE ACTIVITY IS PUTTING A LOT OF PRESSURE ON COMPANIES TO GET BETTER RETURNS AND THAT MEANS OUSTERS DIVESTITURES AND MERGERS MR RATTNER OF LAZARD ADDS THESE CHIEF EXECUTIVE FIRINGS INEVITABLY LEAD TO TRANSACTIONS 9301040026 930104 NOTABLE & QUOTABLE OVER THE PAST SEVERAL YEARS PSYCHOTHERAPISTS HAVE HELPED THOUSANDS OF PEOPLE DISCOVER REPRESSED MEMORIES OF CHILDHOOD SEXUAL ABUSE WHAT IS MORE DISTURBING STILL IS THAT MANY OF THESE MEMORIES MAY BE FALSE THE SIMPLE SOLUTION IS VERY ATTRACTIVE SAYS DR RICHARD GARDNER A CLINICAL PROFESSOR OF CHILD PSYCHIATRY AT COLUMBIA UNIVERSITY YOU'RE THIRTYFIVE OR FORTY AND YOUR LIFE IS ALL SCREWED UP AND SOMEONE OFFERS THIS VERY SIMPLE SOLUTION AH I NEVER REALIZED THAT I WAS SEXUALLY ABUSED THAT EXPLAINS IT ALL' IT'S A SIMPLE ANSWER FOR THE THERAPIST AS WELL AS THE PATIENT 9301040024 930104 YEAREND REVIEW OF BOND MARKET YIELDS ON CDS ARE EXPECTED TO CONTINUE THE MODEST RISE THAT BEGAN LATE IN 1992 BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL MAYBE 1993 WILL BE BETTER YIELDS ON BANK CERTIFICATES OF DEPOSIT TURNED UP A BIT AT THE END OF 1992 AND FURTHER INCREASES ARE LIKELY WHAT'S UNCERTAIN IS WHEN AND HOW MUCH AND WHETHER THE RISE WILL STEM THE FLOW OF FUNDS FROM CDS TO OTHER INVESTMENTS IT ALL WILL BE INFLUENCED BY THE MOVES BILL CLINTON MAKES HOW QUICK AND HOW FAR HE MOVES TO INCREASE GOVERNMENT SPENDING AND JUMPSTART THE ECONOMY SAYS ROBERT K HEADY PUBLISHER OF BANK RATE MONITOR A NORTH PALM BEACH FLA NEWSLETTER YIELDS FELL TO NEW LOWS IN 1992 BOTTOMING OUT IN OCTOBER AT 3 FOR SIXMONTH CDS AND CAUSING INVESTORS TO MOVE HUNDREDS OF BILLIONS OF DOLLARS INTO OTHER INVESTMENTS ASSETS OF CDS OF LESS THAN 100000 THE KIND THAT INDIVIDUAL INVESTORS BUY PEAKED AT CLOSE TO 12 TRILLION EARLY IN 1991 THE TOTAL WAS LESS THAN 875 BILLION AT THE END OF 1992 A 25 DROP MANY BANKS GOT INTO THE BUSINESS OF SELLING OTHER INVESTMENTS SUCH AS MUTUAL FUNDS AND ANNUITIES TO KEEP AT LEAST SOME OF THE DEPARTING CD MONEY IT'S A WAY TO MAINTAIN EXISTING CUSTOMERS AND KEEP THEM IN THE FAMILY SAYS DAVID THIBODEAU EXECUTIVE VICE PRESIDENT OF THIRD NATIONAL BANK IN NASHVILLE TENN SOME MONEY ALSO WENT INTO BANK MONEY MARKET ACCOUNTS WHICH OFFERED ONLY SLIGHTLY LOWER YIELDS WITH TOTAL LIQUIDITY CD YIELDS ARE SET BY BANKS IN RESPONSE TO INTERESTRATE TRENDS COMPETITIVE FACTORS AND NEED FOR FUNDS AS LOAN DEMAND DRIED UP DURING THE RECESSION BANKS HAD LESS NEED FOR DEPOSITS AND DIDN'T HAVE TO GO AFTER THE CD BUSINESS SHORTTERM INTEREST RATES REACHED THEIR LOWEST POINT IN NEARLY 30 YEARS LAST YEAR YIELDS ON CDS WHICH HAVE ONLY BEEN AROUND FOR 10 YEARS OR SO DROPPED TO THEIR LOWEST POINT EVER SO FAR YIELD INCREASES HAVE BEEN TINY THE SIXMONTH CD FOR INSTANCE CREPT UP TO JUST 305 BY YEAR END ACCORDING TO BANK RATE MONITOR THE ONEYEAR CD THE OTHER STANDBY FOR INDIVIDUAL INVESTORS EDGED UP TO 335 FROM A LOW OF 323 THAT'S STILL ABOUT SIX PERCENTAGE POINTS LOWER THAN THE APRIL 1989 PEAK THE UPTURN BEGAN JUST BEFORE THE PRESIDENTIAL ELECTION IN ANTICIPATION OF A CLINTON VICTORY AND INCREASED GOVERNMENT SPENDING WHICH WOULD BE EXPECTED TO FAN INFLATION AND PUSH UP INTEREST RATES IT WILL CONTINUE THIS YEAR REGARDLESS OF WHAT THE NEW PRESIDENT DOES SAYS BANK RATE MONITOR'S MR HEADY IT ALWAYS HAS BEEN AN UPANDDOWN ROLLER COASTER HE SAYS THE RECESSION DRAGGED THIS DOWN CYCLE ON LONGER THAN USUAL BUT BARRING A DRASTIC MOVE TO JUMPSTART THE ECONOMY HARDLY ANYONE IS PREDICTING A SURGE IN INTEREST RATES SOON MR HEADY NOTES THAT MOST BANKS HAVE BEEN HOLDING YIELDS FAIRLY STEADY IN RECENT WEEKS WITH ONLY A FEW INCREASES AND A FEW SMALL DECREASES A SIGN THAT THE BANKS ARE WAITING TO SEE WHAT HAPPENS MANY EXPECT MR CLINTON TO PROCEED CAUTIOUSLY TO KEEP INFLATION UNDER CONTROL THIS WOULD MEAN ONLY SMALL GRADUAL INCREASES IN INTEREST RATES AND CD YIELDS WE'RE LOOKING FOR STABILITY IN RATES FOR THE NEXT SIX TO SEVEN MONTHS SAYS THIRD NATIONAL'S MR THIBODEAU WHEN RATES DO TURN UP MR HEADY SUGGESTS INVESTORS SHOULD STAY SHORT OR STICK WITH SHORTERTERM CDS SO THEY CAN REINVEST THE PROCEEDS WHEN RATES ARE HIGHER HE ALSO WARNS THAT RATES ON BORROWING TYPICALLY RISE FASTER THAN RATES ON SAVINGS MORTGAGE RATES WILL PROBABLY GO UP FIRST HE SAYS FOLLOWED BY THE BENCHMARK PRIME LENDING RATE AND THE RATE ON UNSECURED PERSONAL LOANS ONLY THEN WILL INVESTORS START TO SEE THE RATES PAID ON THEIR SAVINGS INCREASE 9301040023 930104 OTC FOCUS IPOS RAISE A RECORD 394 BILLION FOR '92 BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL INITIAL PUBLIC OFFERINGS OF STOCK RAISED A RECORD 394 BILLION FROM INVESTORS IN 1992 AND MANY THINK THE IPO TIDAL WAVE COULD GROW STILL HIGHER FROM THE UNDERWRITERS' POINT OF VIEW THE IPO MARKET HAD A BANNER YEAR SAYS ANALYST ROBERT NATALE OF STANDARD & POOR'S CORP BUT FROM THE INVESTOR PERSPECTIVE 1991 WAS A MUCH BETTER YEAR FOR 1992 S&P'S INDEX OF NEWISSUE PERFORMANCE ROSE 27 IN THE WAKE OF A 1991 SURGE OF 106 FUELING THE IPO BOOM WAS A BULL MARKET IN SMALL STOCKS THE NASDAQ COMPOSITE INDEX ADDED 510 POINTS THURSDAY TO CLOSE AT 67695 FINISHING THE YEAR WITH A 155 GAIN THE IPO PIPELINE IS BURSTING AT THE SEAMS SAYS MR NATALE EVERYONE IS EXPECTING A HOT FIRST QUARTER AND IT COULD BE HIGHER THAN LAST YEAR'S FIRST QUARTER THE IPO MARKET STARTED 1992 WITH A BANG AS THE NUMBER OF OFFERINGS IN THE FIRST QUARTER SOARED TO 170 AFTER A SUMMER SLUMP NEW ISSUES REBOUNDED TO PEPPER THE FOURTH QUARTER WITH 159 OFFERINGS THE PAST YEAR'S IPOS RAISED MORE THAN DOUBLE THE YEAREARLIER TOTAL OF 164 BILLION EXCLUDING INVESTMENT FUNDS IF SUCH FUNDS ARE INCLUDED THE PREVIOUS PEAK YEAR WAS 1987 WITH 268 BILLION OF INITIAL OFFERINGS ALSO DURING THE PAST YEAR 482 ALREADYPUBLIC COMPANIES SOLD 33 BILLION OF NEW SHARES MAKING 1992 A RECORD FOR ALL STOCK SALES ACCORDING TO SECURITIES DATA CO AN INVESTMENT RESEARCH CONCERN THE TOTAL NUMBER OF IPOS FOR 1992 REACHED 595 BELOW THE RECORD OF 727 IN 1986 WE HAD TWO PERIODS AT THE BEGINNING AND AT THE END OF THE YEAR WHEN IPOS WERE GOING BONKERS SAYS RAY HIRSCH A SENIOR PORTFOLIO MANAGER AT IDS GROWTH SPECTRUM ADVISORS IN MINNEAPOLIS I HAD TO USE THE TRIAGE METHOD TO LOOK AT ALL THE NEW OFFERINGS ONE THIRD WENT TO THE TRASH ONE THIRD I LOOKED AT PERSONALLY AND ONE THIRD I PASSED ON TO ANOTHER PERSON TO TELL ME WHICH ONES I SHOULD LOOK AT DURING THE EARLY PART OF THE YEAR BIOTECHNOLOGY DOMINATED THE NEWISSUES MARKET THE YEAR FINISHED WITH A STRONG SHOWING IN TECHNOLOGYRELATED COMPANIES DURING THE INTERIM CONSUMERORIENTED NAMES LIKE STARBUCKS WERE THE ONES THAT ATTRACTED THE MOST ATTENTION SAYS SCOTT MULLINIX AN ANALYST AT IDS GROWTH SPECTRUM STARBUCKS A RETAILER OF SPECIALTY COFFEES BASED IN SEATTLE WENT PUBLIC AT 17 IN JUNE WITH LEADUNDERWRITER ALEX BROWN & SONS THE STOCK ROSE 1 THURSDAY TO END THE YEAR AT 37 IN A DULL YEAR FOR MANY STOCKS IPOS STOOD OUT THE LEAP IN S&P'S INDEX OF IPOS WAS SIX TIMES AS LARGE AS THE 45 FULLYEAR GAIN IN THE S&P 500 AND ROUNDLY BEAT THE 42 RISE IN THE DOW JONES INDUSTRIAL AVERAGE MANY INVESTORS FLIPPED THEIR HOT NEW STOCKS OR SOLD THEIR SHARES QUICKLY FOR HIGH PROFITS NOT EVERY IPO BROUGHT INVESTORS PROFITS THOUGH ONE OF THE YEAR'S WORST PERFORMING IPOS THE BIOTECHNOLOGY COMPANY CELLCOR AT 2 1/2 HAS TUMBLED 77 FROM ITS INITIAL PRICE OF 11 FURMAN SELZ WAS THE LEAD MANAGER OF THE TWO MILLION SHARE OFFERING FIVE MONTHS AFTER THE NEWTON MASS COMPANY'S MARCH OFFERING CELLCOR CAME UNDER FIRE FROM ONE OF ITS FORMER MEDICAL OFFICIALS IN AN UNUSUAL DISPUTE ABOUT THE EFFECTIVENESS OF ITS NOVEL ANTICANCER THERAPY CELLCOR OFFERS A TREATMENT FOR KIDNEY CANCER IN WHICH A PATIENT'S OWN WHITE BLOOD CELLS ARE EXTRACTED TREATED TO MAKE THEM ATTACK TUMOR CELLS AND THEN REINTRODUCED INTO THE PATIENT IN SEPTEMBER CELLCOR WAS SERVED WITH A LAWSUIT AGAINST THE COMPANY ITS DIRECTORS AND OFFICERS AND ITS UNDERWRITER ALLEGING FRAUD AND NEGLIGENT MISREPRESENTATION RELATING TO ITS INITIAL PUBLIC OFFERING COMPANY OFFICIALS HAVE SAID THE LITIGATION IS WITHOUT MERIT AND THE COMPANY PLANS TO VIGOROUSLY CONTEST THE ACTION ALSO AMONG THE 1992 LAGGARDS WAS COMPUTERVISION WHICH TRADES ON THE NEW YORK STOCK EXCHANGE AT 5 3/4 OFF 52 FROM ITS AUGUST OFFERING PRICE OF 12 AFTER HITTING A 52WEEK LOW OF 4 ON DEC 16 THE PRICE OF THE STOCK PICKED UP REFLECTING EXPECTATIONS THAT THE COMPANY WILL POST A PROFIT FOR THE FOURTH QUARTER THE BEDFORD MASS COMPANY POSTED A NET LOSS OF 240 A SHARE FOR THE THIRD QUARTER AFTER VARIOUS CHARGES THE BESTPERFORMING IPO OF THE YEAR WAS LONE STAR STEAKHOUSE & SALOON OFFERED AT 6 3/4 ADJUSTED FOR A 2FOR1 SPLIT THROUGH LEADMANAGER MONTGOMERY SECURITIES NOW TRADING AT 37 5/8 THE STOCK IS UP 4575 AS OF MIDDECEMBER 23 RESTAURANTS WERE OPERATING COMPARED WITH EIGHT UNITS AT THE END OF 1991 THE WICHITA KAN COMPANY PLANS TO DEVELOP 24 DOMESTIC RESTAURANTS IN 1993 AND OPEN ITS FIRST INTERNATIONAL UNIT IN SYDNEY AUSTRALIA IN MIDJANUARY CASINO MAGIC AT 23 IS TRADING AT 360 ABOVE ITS OFFERING PRICE OF 5 THE STOCK WHICH HIT THE MARKET ON OCT 23 IMMEDIATELY JUMPED 95 FROM ITS OFFERING PRICE TO CLOSE AT 9 3/4 CASINO MAGIC'S 37 MILLION SHARES WERE OFFERED THROUGH SUMMIT INVESTMENT CORP THE COMPANY OPERATES A CASINO IN ITS HEADQUARTERS CITY BAY ST LOUIS MISS AND A HOTEL RESTAURANT AND CASINO IN DEADWOOD SD S&P'S MR NATALE SAYS INVESTORS NEED TO BE WARY OF NEW ISSUES IN THE RESTAURANT AND COMPUTER NETWORKING AREAS WHICH ARE REACHING VERY HIGH VALUATION LEVELS HE SAYS SOME OF THE HOTTEST PENDING IPOS WILL BE IN THE RETAIL INDUSTRIAL AND COMPUTER SOFTWARE INDUSTRIES AND A CONTINUED LIST OF COMPANIES REVERSING LEVERAGED BUYOUT POSITIONS SMALL STOCKS ARE THE PLACE TO BE AND A LOT OF UNDERWRITERS ARE GOING TO TAKE A NEW GROUP OF COMPANIES PUBLIC UNTIL THE VALUATIONS ARE TOO HIGH MR NATALE SAYS THE ACTORS CHANGE BUT THE PLAY GOES ON THE OVERTHECOUNTER MARKET LEFT 1992 BEHIND BY SETTING ANOTHER RECORD HIGH THE NASDAQ COMPOSITE INDEX ENDED 1992 BY JUMPING 510 POINTS OR 076 TO 67695 ENDING THE YEAR WITH A 155 GAIN TOTAL VOLUME REGISTERED 2032 MILLION SHARES ADVANCING ISSUES OUTNUMBERED DECLINERS 1803 TO 920 IT'S BEEN A REWARDING YEAR FOR OVERTHECOUNTER SAID JACK MULDOWNEY HEAD OF EQUITY TRADING AT SCOTT & STRINGFELLOW FINANCIAL AMONG THE MOST ACTIVE ISSUES ON THE LAST TRADING DAY OF THE YEAR WERE SUN MICROSYSTEMS UNCHANGED AT 33 5/8 AND TELECOMMUNICATIONS CLASS A SHARES UNCHANGED AT 21 1/4 ANOTHER ACTIVE ISSUE CYTOGEN CORP EASED 1/4 TO 22 AFTER BIG GAINS WEDNESDAY THE COMPANY ESTIMATED A FOURTHQUARTER LOSS OF 13 CENTS A SHARE NARROWER THAN THE LOSS OF 19 CENTS A SHARE IN THE YEAREARLIER QUARTER ON WEDNESDAY THE PRINCETON NJ CONCERN SAID IT RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET TWO CANCER DIAGNOSTIC IMAGING PRODUCTS LECHTERS JUMPED 2 1/8 TO 19 7/8 LATE WEDNESDAY AFTERNOON THE COMPANY REPORTED SALES OF 704 MILLION FOR THE FIVEWEEK PERIOD ENDED DEC 26 AN INCREASE OF 29 OVER SALES OF 545 MILLION FOR THE SAME PERIOD LAST YEAR COMPARABLESTORE SALES INCREASED 64 IN THE FIVE WEEKS COMPARED WITH A YEAR EARLIER THE HARRISON NJ COMPANY IS A RETAILER OF HOUSEWARES FIRST PACIFIC NETWORKS INC ROSE 1 TO 13 1/8 JOSEPHTHAL LYONS & ROSS SAID IT TRADED A 500000SHARE BLOCK JOSEPHTHAL SAID IT SEES BIG INSTITUTIONAL DEMAND FOR THE STOCK BUSINESS WEEK'S DEC 21 ISSUE SAID THE STOCK WAS GAINING APPROVAL AMONG SOME BIG INVESTORS TIME WARNER'S CABLE UNIT AND MCI HAVE AGREED TO TEST FIRST PACIFIC'S TECHNOLOGY CALLED PERSONAL XCHANGE WHICH CONSISTS OF HARDWARE AND SOFTWARE THAT ALLOW VIDEO VOICE OR DATA SIGNALS TO BE ROUTED ON A SINGLE WIRE MIDLANTIC CORP DROPPED 1 7/8 TO 19 7/8 THE EDISON NJ BANK HOLDING COMPANY WAS NAMED IN THE HEARD ON THE STREET COLUMN AS ONE OF A NUMBER OF BANKS THAT MIGHT BE VULNERABLE TO INVESTOR DISAPPOINTMENT IF A TAKEOVER AT A BIG PREMIUM DOESN'T MATERIALIZE 9301040022 930104 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PIKEVILLE NATIONAL CORP AN OFFERING OF 5 MILLION IN 7 3/8 SIXYEAR SENIOR NOTES AND 12250000 OF 8 1/4 10YEAR SENIOR NOTES US ROBOTICS INC AN OFFERING OF 25 MILLION COMMON SHARES VIA UNDERWRITERS LED BY HAMBRECHT & QUIST INC WABASH NATIONAL CORP AN OFFERING OF 26 MILLION COMMON SHARES VIA UNDERWRITERS LED BY ALEX BROWN & SONS INC AND WERTHEIM SCHRODER & CO 9301040021 930104 YEAREND REVIEW OF STOCK MARKET STOCKS YOU NEVER HEARD OF WERE 1992'S BEST PERFORMERS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU MISSED OUT ON THE HOTTEST STOCKS OF 1992 YOU WEREN'T ALONE EXCEPT FOR CHRYSLER WHICH ROSE 172 LAST YEAR MOST INVESTORS HARDLY RECOGNIZE THE NAMES OF THE TOP PERFORMERS INDEED 1992 WAS THE YEAR OF THE LITTLEKNOWN SMALL STOCK THE REASONS FOR THEIR GAINS ARE AS VARIED AS THE STOCKS THEMSELVES SOME STOCKS SOARED AS THEIR TROUBLED INDUSTRIES IMPROVED SUCH AS THE SAVINGS AND LOAN NORTHEAST FEDERAL AND DISK DRIVE MAKER WESTERN DIGITAL OTHERS SUCH AS CARRIAGE INDUSTRIES GAINED AS THEY MOVED INTO THE TAKEOVER SPOTLIGHT STILL OTHERS SUCH AS APPAREL MAKER BERNARD CHAUS WHICH POSTED A 143 GAIN BENEFITED FROM RAISING PRODUCTIVITY RATHER THAN PRICES IN THE WEAK ECONOMY MANY OF THE TOP GAINERS WERE STRUGGLING COMPANIES THAT SHOWED SIGNS OF A TURNAROUND IN 1992 THESE COMPANIES ALSO TEND TO HAVE FAR FEWER SHARES OUTSTANDING THAN DO LARGER COMPANIES SO A RUSH FOR THE STOCK BY A LIMITED NUMBER OF INVESTORS DROVE PRICES UP SUBSTANTIALLY AND SHARES OF MANY WINNING COMPANIES WERE PRICED VERY LOW OFTEN IN SINGLE DIGITS SO A LARGE PERCENTAGE GAIN ACCOMPANIED A MODEST JUMP IN PRICE A LOT OF INVESTORS DIDN'T SEE THESE STOCKS SAYS HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP BEING ONE MYSELF I CAN TELL YOU WHAT THAT FEELS LIKE ANALYSTS EXPECT SOME OF THE 1992 WINNERS TO KEEP RISING IN 1993 AS THEIR TURNAROUND EFFORTS TAKE ROOT BUT AFTER FANTASTIC JUMPS IN 1992 THE ADVANCES ARE LIKELY TO BE SIGNIFICANTLY SLOWER COMMON SENSE TELLS ME IF I WANT THESE KINDS OF GAINS I BETTER LOOK ELSEWHERE MR JOHNSON SAYS BUT FINDING THE UNDISCOVERED GEM CAN BE TRICKY AND RISKY STOCKS THAT SWIFTLY RISE TO TOWERING HEIGHTS OFTEN CAN PLUNGE JUST AS QUICKLY MR JOHNSON WARNS INVESTORS AGAINST MAKING BIG RISKY BETS I DON'T THINK THAT'S WHAT INVESTORS SHOULD SEEK OUT THEY SHOULD LOOK FOR STEADY LONGTERM GAINS HE SAYS YOU CAN SLEEP MORE AT NIGHT BUT ANALYSTS SAY ADVENTUROUS INVESTORS LOOKING FOR NEGLECTED COMPANIES ON THE VERGE OF A HUGE STOCK PRICE GAIN SHOULD WATCH FOR A VARIETY OF SIGNALS AMONG THEM EARNINGS GROWTH AFTER A PERIOD OF LOSSES A LOW PRICE AND LOTS OF CASH IT'S CLEARLY A CONTRARIAN BET SAYS PAUL WEINSTEIN AN ANALYST AT KIDDER PEABODY YOU BUY THESE COMPANIES WHEN NO ONE LIKES THEM CONSIDER WESTERN DIGITAL MR WEINSTEIN SAYS THE STOCK PRICE OF 2 3/4 A YEAR AGO REFLECTED THE COMPANY'S DIFFICULTIES IN THE CYCLICALLY BEATENDOWN DISK DRIVE INDUSTRY INVESTORS HAD LITTLE INTEREST IN THE STOCK BUT IF YOU LOOK AT WHAT THE COMPANY HAS DONE IN THE LAST 12 MONTHS IT HAS NOT ONLY IMPROVED PERFORMANCE BUT ALSO ITS BALANCE SHEET MR WEINSTEIN SAYS A YEAR AGO WESTERN DIGITAL WAS LOSING MONEY TODAY ALL EXPECTATIONS ARE IT'LL CONTINUE TO MAKE MONEY THE STOCK ENDED THE YEAR AT 8 5/8 UP 229 INVESTORS ALSO RETURNED IN 1992 TO THE THE STOCK OF LITTLEKNOWN DIANA CORP THE COMPANY WHICH EMERGED FROM THE 1980S LOADED WITH DEBT AND A VARIETY OF COMPANIES INCLUDING A CEILING FAN MANUFACTURER FOOD DISTRIBUTOR AND RETAILING OPERATIONS LAST YEAR SHED SOME UNITS WHAT PEOPLE DIDN'T REALIZE WAS THAT THE COMPANY WAS LEFT WITH A NICE CHUNK OF CASH SITTING THERE SAYS CHRISTOPHER MARLETT AN ANALYST AT DRAKE CAPITAL SECURITIES IN SANTA MONICA CALIF DIANA REFOCUSED ITS STRATEGY AND PUT ITS CASH TO WORK BUYING TELECOMMUNICATIONS COMPANIES THAT IS WHAT IS FUELING THE STOCK PRICE THE ABILITY TO BUY THE EARNINGS OF GROWING COMPANIES SAYS MR MARLETT DIANA'S GOING TO CONTINUE ON THIS GROWTH TREND OVER THE NEXT YEAR OR SO THE STOCK PRICE CAN GO QUITE A BIT HIGHER LAST YEAR DIANA GAINED 181 A SUCCESSFUL RESTRUCTURING ALSO DROVE THE STOCK PRICE OF TANDYCRAFTS WHICH SOARED 261 AFTER SEVERAL TOUGH YEARS THE COMPANY STANCHED LOSSES BY CLOSING ALMOST HALF OF ITS RETAIL STORES EARNINGS IMPROVED FOR THE COMPANY WHICH OPERATES STORES SELLING LEATHER PRODUCTS FURNITURE AND OFFICE SUPPLIES AND MAKES PICTURE FRAMES DENNIS VAN ZELFDEN RETAIL ANALYST AT RAUSCHER PIERCE & REFSNES IN DALLAS SAYS ONE REASON THE STOCK LEAPED SO HIGH WAS THAT RELATIVELY FEW SHARES CHANGE HANDS MANY SHARES ARE OWNED BY INSIDERS AND THE COMPANY PROFITSHARING PLAN SO THAT A LITTLE BUYING OF THE AVAILABLE SHARES CAN RUN UP THE PRICE MR VAN ZELFDEN REMAINS UPBEAT ABOUT THE STOCK'S PROSPECTS HE NOTES THAT TANDYCRAFTS HAS A STRONG BALANCE SHEET WITH MINIMAL DEBT THERE'S NO REASON TO THINK THE BETTER FUNDAMENTALS WON'T CONTINUE MR VAN ZELFDEN SAYS AN IMPROVEMENT IN THE SAVINGS AND LOAN INDUSTRY HELPED TO LIFT BANCFLORIDA FINANCIAL TO THE TOP OF THE WINNERS LIST WITH A GAIN OF 357 LIKE MANY SAVINGS AND LOANS BANCFLORIDA SUFFERED IN RECENT YEARS BUT IN 1992 AS PROFITS IN THE INDUSTRY IMPROVED SO DID STOCK PRICES PARTICULARLY FOR SOUTHEASTERN THRIFTS AN INDEX OF SAVINGSANDLOANS STOCK PRICES COMPILED BY SNL SECURITIES IN CHARLOTTESVILLE VA SHOWED A 103 GAIN THROUGH NOVEMBER FOR SOUTHEASTERN THRIFTS NORTHEASTERN SAVINGS AND LOANS ROSE 65 DURING THE PERIOD NORTHEAST FEDERAL HARTFORD CONN WHICH SOARED 231 IN 1992 GOT A BOOST FROM GROWING INVESTOR INTEREST IN NORTHEASTERN SAVINGS AND LOANS THE GENERAL FEELING IS THAT NORTHEAST COMPANIES HAVE WEATHERED THE RECESSION SAYS SALLY MCIVER SENIOR THRIFT ANALYST AT SNL SECURITIES COMPANIES THAT HAVEN'T FAILED AT THIS POINT ARE LIKELY TO MAKE IT NORTHEAST FEDERAL'S STOCK PRICE MAY STILL HAVE FURTHER TO GO IT HAS 49 BRANCHES IN GOOD LOCATIONS IN THE NORTHEAST AND HAS NOT HAD LOSSES FOR THE LAST TWO YEARS THEIR PROBLEMS APPEAR TO BE BEHIND THEM SAYS MS MCIVER IF PEOPLE CONTINUE TO SEE INCREASES IN EARNINGS THEN THE STOCK PRICE WILL CONTINUE TO GO UP THE WEAK ECONOMY REWARDED COMPANIES THAT FOCUSED ON BOOSTING SALES BY CONTAINING COSTS APPAREL MAKER BERNARD CHAUS SAW A MAJOR TURNAROUND BY REDUCING ITS PRODUCTION COSTS AND THEN SETTING LOWER PRICE TARGETS FOR ITS GOODS WE'RE IN A PRODUCTIVITYLED RECOVERY SAYS AC MOORE PORTFOLIO MANAGER AND STRATEGIST AT ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIF IN THIS KIND OF ENVIRONMENT THOSE THAT CAN CUT THEIR COSTS AND LOWER PRICES WILL GET THE LION'S SHARE THOSE THAT CAN'T WILL DO RATHER POORLY THE ONE BIG NAME ON THE WINNERS LIST CHRYSLER ALSO ATTRACTED INTEREST AS A TURNAROUND STOCK AFTER INVESTORS DUMPED THE STOCK IN RECENT YEARS GIVING CHRYSLER UP FOR DEAD THE COMPANY BOUNCED BACK WITH SOME POSITIVE EARNINGS AND POPULAR NEW MODELS CHRYSLER IS ONE OF THE BEST EXAMPLES OF A TURNAROUND COMPANY MR MOORE SAYS 9301040020 930104 FINANCING BUSINESS EMERGING MEXICO FUND INC EMERGING MEXICO FUND INC SAID IN NEW YORK THAT IT PLANS A RIGHTS OFFERING TO SELL ALMOST 17 MILLION OF THE CLOSEDEND INVESTMENT FUND'S COMMON SHARES THE PLAN CALLS FOR SHAREHOLDERS TO RECEIVE ONE RIGHT FOR EACH COMMON SHARE OWNED ENTITLING SHAREHOLDERS TO BUY ONE SHARE FOR EACH THREE RIGHTS SUBSCRIPTION PRICE AND RECORD DATE TO RECEIVE THE RIGHTS HAVEN'T YET BEEN ESTABLISHED CLOSEDEND FUNDS OFTEN USE RIGHTS OFFERINGS TO RAISE ADDITIONAL INVESTMENT FUNDS THE FUND WHICH BEGAN OPERATIONS IN OCTOBER 1990 INVESTS PRIMARILY IN MEXICAN EQUITY SECURITIES IN NEW YORK STOCK EXCHANGE TRADING THURSDAY THE FUND'S SHARES CLOSED AT 17375 UP 125 CENTS 9301040019 930104 COMMODITIES A PERIOD OF VOLATILITY LOOMS FOR COFFEE MARKET AS BULL MARKET SHOWS SIGNS OF LOSING STEAM BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL THE COFFEE MARKET BUFFETED LAST WEEK BY POLITICAL TURMOIL IN BRAZIL MAY BE IN FOR ANOTHER WEEK OF VOLATILE PRICE MOVEMENT FOR THE PAST FOUR MONTHS A BULL MARKET HAS REIGNED IN COFFEE FUTURES TRADING DRIVEN BY OPTIMISM ABOUT THE POSSIBILITY OF AN INTERNATIONAL COFFEE AGREEMENT AND RESTRAINT IN SELLING BY COFFEEPRODUCING NATIONS SOME ANALYSTS ARE BEGINNING TO POINT TO SIGNS THAT THE BULL MARKET IS LOSING ITS MOMENTUM HOWEVER I THINK THERE'S A GOOD CHANCE WE MAY HAVE SEEN THE TOP SAYS BERNARD SAVAIKO COFFEE ANALYST FOR PAINEWEBBER INC IT'S LIKE THE TIDE IS CHANGING AFTER THE TIDE COMES IN IT DOESN'T IMMEDIATELY TURN AROUND AND GO OUT YOU HAVE A TRANSITION PERIOD WHERE IT'S BEING PULLED BACK AND FORTH COMMODITY FUNDS ORGANIZED POOLS OF INVESTOR MONEY THAT TEND TO INVEST ON THE BASIS OF MATHEMATICAL FORMULAS RATHER THAN SUPPLYANDDEMAND FACTORS ARE STILL HOLDING LARGE LONG POSITIONS OR WAGERS THAT COFFEE PRICES WILL CONTINUE TO RISE THIS ENSURES THAT SOME UPWARD MOMENTUM REMAINS IN THE COFFEE MARKET BUT MANY COFFEE PRODUCERS AND PROCESSORS HAVE BEEN SELLING FUTURES CONTRACTS BY SELLING FUTURES AT THE CURRENT PRICE LEVEL THURSDAY'S CLOSING PRICE WAS 7755 CENTS A POUND FOR THE MARCH CONTRACT PRODUCERS CAN LOCK IN A PROFIT FOR THEMSELVES THIS SELLING COUPLED WITH CONCERNS ABOUT BRAZIL'S POLITICAL SITUATION GIVES THE MARKET POTENTIAL TO FALL SHARPLY ON TUESDAY BRAZIL'S PRESIDENT FERNANDO COLLOR DE MELLO RESIGNED AMID ALLEGATIONS OF CORRUPTION IN HIS ADMINISTRATION ALTHOUGH HIS SUCCESSOR ITAMAR FRANCO HASN'T MADE ANY FORMAL REMARKS ABOUT POTENTIAL CHANGES IN BRAZIL'S COFFEE POLICY TRADERS ARE WORRIED THAT BRAZIL THE WORLD'S LARGEST COFFEE PRODUCER MAY DUMP COFFEE ON THE WORLD MARKET BRAZIL HAS STOCKS OF ABOUT 17 MILLION BAGS OF COFFEE SAYS WILLIAM O'NEILL CHIEF FUTURES ANALYST FOR MERRILL LYNCH THERE ARE RUMORS THAT BRAZIL MAY NOW BEGIN TO LIQUIDATE THOSE STOCKS AT A PACE OF ABOUT 105000 BAGS A MONTH BRAZIL HAS INCENTIVE TO SELL NOW BECAUSE COFFEE PRICES ARE STRONG MOREOVER THE COUNTRY'S STOCKS ARE RELATIVELY OLD AND AS THE COFFEE AGES IT ALSO LOSES VALUE PAINEWEBBER'S MR SAVAIKO SAYS ANOTHER QUESTION IS WHETHER COFFEEPRODUCING COUNTRIES WILL BE ABLE TO ACHIEVE AN INTERNATIONAL COFFEE AGREEMENT THAT SPELLS OUT THE QUANTITY OF COFFEE EACH NATION WILL SELL AN AGREEMENT COULD SUPPORT PRICES AND PERHAPS EVEN DRIVE THEM SUBSTANTIALLY HIGHER FAILURE TO ACHIEVE AN AGREEMENT COULD MEAN A PRECIPITOUS DROP IN PRICES IN THE SHORT TERM THE MARKET WILL FOCUS ON THE PSYCHOLOGICALLY IMPORTANT 80CENTAPOUND PRICE LEVEL FOR THE MARCH FUTURES CONTRACT COMMODITY FUNDS AND COFFEE PRODUCERS MAY PLAY TUGOFWAR WITH PRICES AROUND THAT LEVEL WHICH MEANS THE MARKET IS LIKELY TO BE QUITE VOLATILE WE MAY GO UP TO TEST 80 CENTS ONE MORE TIME MR SAVAIKO SAYS AND IF WE GET UP THERE AND FAIL TO BREAK THROUGH IT THEN I COULD SEE IT COMING DOWN WITH A VENGEANCE I THINK THAT WOULD BE A KISS OF DEATH IN THAT CASE I THINK WE COULD GO DOWN TO 70 CENTS MAYBE EVEN 65 LOOKING AHEAD TO OTHER COMMODITY MARKETS THIS WEEK MARKET PLAYERS WILL BE BACK FROM LONG HOLIDAYS AND THE PACE OF TRADING IS EXPECTED TO QUICKEN STILL TRADERS WILL BE LOOKING FOR FRESH NEWS TO DRIVE PRICES AN ABSENCE OF MARKETMOVING NEWS HAS COMBINED WITH VACATIONS TO KEEP VOLUME LIGHT IN RECENT WEEKS AND PRICES HAVE MOVED IN NARROW RANGES RETURNING PLAYERS WILL BE LOOKING AHEAD TO SEE IF CRUDE OIL AND PETROLEUM PRODUCT INVENTORY TRENDS CONTINUE LAST WEEK THE AMERICAN PETROLEUM INSTITUTE REPORTED THAT CRUDE STOCKS DECLINED 86 MILLION BARRELS GASOLINE STOCKS FELL 15 MILLION BARRELS AND DISTILLATE INVENTORIES ROSE 16 MILLION BARRELS TRADERS GENERALLY HAVE SHRUGGED OFF THE SIZABLE REDUCTION IN CRUDE INVENTORIES SAYING IT WAS DUE TO YEAREND DISTORTIONS IN CRUDE MOVEMENTS RATHER THAN REFLECTING A BIG INCREASE IN DEMAND TRADERS THIS WEEK WILL FOCUS ON RUSSIA'S PERFORMANCE IN MEETING ITS FINANCIAL OBLIGATIONS FOR THE GRAIN IT HAS BOUGHT FROM US FARMERS LAST WEEK RUSSIA'S DELINQUENCY ON GRAIN PAYMENTS ROSE TO MORE THAN 100 MILLION CONTINUING DELINQUENCY WOULD LIKELY PUSH GRAIN FUTURES PRICES DOWN BECAUSE RUSSIA IS ONE OF THE BIGGEST SOURCES OF DEMAND FOR US GRAIN GRAIN TRADERS AT THE CHICAGO BOARD OF TRADE WILL ALSO WATCH THE WEATHER IN SOUTHERN BRAZIL A BIG PRODUCER OF SOYBEANS THE DEVELOPING CROP THERE HAS WEATHERED A PERIOD OF SUSTAINED DRYNESS BUT RAIN HAS BEEN IN THE FORECAST RECENTLY INDICATIONS THAT THE CROP WILL GET ALL THE RAIN IT NEEDS ALSO WOULD BE LIKELY TO CHILL FUTURES PRICES 9301040018 930104 YEAREND REVIEW OF BOND MARKET BOND ANALYSTS TELL INVESTORS THIS YEAR SHOULD BE ONE OF MOSTLY COUPON CLIPPING BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE GROWING EVIDENCE THAT THE ECONOMY WAS GAINING STRENGTH AND WORRIES THAT A NEWLY ELECTED DEMOCRATIC PRESIDENT WOULD INCREASE GOVERNMENT SPENDING MOST US BOND MARKETS POSTED MODEST SINGLEDIGIT RETURNS LAST YEAR WHILE SOME DID EVEN BETTER BUT 1993 IS SHAPING UP AS A YEAR FOR COUPON CLIPPING SAY MONEY MANAGERS UNLESS YOU HAVE THE STOMACH TO TAKE ON EXTRA RISK IN THE MARKETS FOR JUNK BONDS OR CONVERTIBLE SECURITIES THEY SAY IT WILL BE DIFFICULT TO EARN TOTAL ANNUAL RETURNS MUCH HIGHER THAN THE COUPON PAYMENTS ON MOST BONDS EXPECTATIONS FOR LARGE TOTAL RETURNS SHOULD BE SOMEWHAT LESS THAN THEY HAVE BEEN OVER THE LAST COUPLE OF YEARS SAYS ROBERT ANDRES HEAD OF FIXEDINCOME INVESTING AT MARTINDALE ANDRES & CO OF WEST CONSHOHOCKEN PA WITH THE ECONOMY EXPECTED TO CONTINUE GROWING ALBEIT SLOWLY ECONOMISTS HOLD LITTLE HOPE FOR FURTHER RATE CUTS BY THE FEDERAL RESERVE IN FACT THERE MAY BE RATE INCREASES BY THE SECOND HALF OF THIS YEAR THEY SAY IF THE ECONOMY PICKS UP SOME SPEED BOND INVESTORS TRADITIONALLY FEAR AN ACCELERATING ECONOMY BECAUSE IT COULD LEAD TO INCREASED INFLATION BUT WITH THE CONSUMER PRICE INDEX HOVERING NEAR AN ANNUAL GROWTH RATE OF 3 AT YEAR'S END BOND MARKETS HAD LITTLE REASON TO WORRY ABOUT INFLATION LAST YEAR TOTAL RETURNS FOR LAST YEAR WERE IN MOST CASES ABOUT HALF OF WHAT THEY WERE IN 1991 WHEN THE FEDERAL RESERVE PUSHED THE FEDERAL FUNDS RATES THAT BANKS CHARGE EACH OTHER FOR OVERNIGHT LOANS TO 4 FROM 7 OVER THE COURSE OF 1992 THAT RATE DROPPED JUST ONE PERCENTAGE POINT MORE TO 3 AS SHORTTERM RATES HIT THEIR LOWEST LEVELS IN THREE DECADES THE THREEMONTH BILL DROPPED FROM 393 AT THE BEGINNING OF THE YEAR TO 315 BY YEAR END THE 30YEAR BOND DROPPED AS LOW AS 722 THE LOWEST SINCE 1986 BUT FINISHED THE YEAR AT 739 EXACTLY WHERE IT STARTED AFTER RISING DURING THE WEEKS SURROUNDING ELECTION DAY AND PUSHING THE YIELD FOR THE 30YEAR BOND OVER 775 THE TREASURY MARKET STAGED A RALLY THAT PUSHED THE YIELD BACK DOWN BY YEAR END INVESTORS BECAME MORE CONVINCED THAT THE NEW PRESIDENT WON'T USE A HUGE SHORTTERM SPENDING PROGRAM TO STIMULATE THE ECONOMY BOND INVESTORS MADE AN IMPORTANT SHIFT LAST YEAR WORRYING LESS ABOUT ECONOMIC GROWTH AS LONG AS IT WAS SLOW AND INFLATION CONTINUED TO BE SUBDUED THAT PATTERN SAY ECONOMISTS IS LIKELY TO CONTINUE THROUGH MOST OF THIS YEAR AS LONG AS PRESIDENTELECT CLINTON CONTINUES TO SHOW DEFERENCE TO THE FINANCIAL MARKETS AND THE ECONOMY CONTINUES TO GROW SLOWLY AS INFLATION REMAINS SUBDUED ACCORDING TO DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC US GROSS DOMESTIC PRODUCT SHOULD RISE AT AN ANNUAL RATE OF 3 IN 1993 WHILE INFLATION AS MEASURED BY THE CONSUMER PRICE INDEX HOVERS NEAR A 3 ANNUAL GROWTH RATE MR FINE SAYS INVESTORS CAN EXPECT A 3 FED FUNDS RATE FOR QUITE SOME TIME PERHAPS UNTIL THE END OF THE YEAR STRENGTH IN THE ECONOMY WILL PUT DOWNWARD PRESSURES ON BOND PRICES SAYS MR FINE BUT AT THE SAME TIME WORRIES ABOUT MR CLINTON'S GOVERNMENT SPENDING PACKAGE WILL PUT UPWARD PRESSURES ON LONGTERM RATES SO REACTIONS ON BOTH SIDES WILL BE MUTED SAYS MR FINE AS A RESULT YIELDS FOR LONGTERM AND SHORTTERM SECURITIES ARE LIKELY TO BE LITTLE CHANGED TO SLIGHTLY HIGHER BY THE END OF 1993 BUT INVESTORS WILL REMAIN FUNDAMENTALLY SKEPTICAL OF THE PRESIDENTELECT'S ECONOMIC PLANS UNTIL HE PROVES HIS METTLE THROUGH ACTIONS SAY MONEY MANAGERS HERE IS A CLOSER LOOK AT SOME SEGMENTS LAST YEAR'S TOP PERFORMER WAS CONVERTIBLE BONDS WITH A RETURN OF 2241 DOWN FROM 3196 IN 1991 ACCORDING TO MERRILL LYNCH'S INDEXES CONVERTIBLE BONDS CAN BE CONVERTED AT A FUTURE DATE AND AT A SPECIFIED PRICE FOR ANOTHER TYPE OF SECURITY OFTEN COMMON STOCK ACCORDING TO KENNETH LIPPER CHAIRMAN OF LIPPER & CO A MONEY MANAGER WITH 1 BILLION IN CONVERTIBLE SECURITIES UNDER MANAGEMENT SUCH STRATOSPHERIC RETURNS WILL BE HARDER TO COME BY THIS YEAR THE BIG STORY IS THAT THE CONVERTIBLE INSTRUMENT HAS BECOME A LEGITIMATE INSTRUMENT OF MAINSTREAM FINANCING IN CORPORATE AMERICA HE SAYS IT USED TO BE SOMETHING THAT SMALL COMPANIES WOULD USE WHO COULDN'T GET FINANCING ANOTHER WAY ALTHOUGH ISSUANCE OF NEW CONVERTIBLE DEBT ROSE SHARPLY IN 1992 ANALYSTS ESTIMATE THAT THERE IS ONLY ABOUT 70 BILLION OF ISSUES OUTSTANDING IN THE CONVERTIBLE BOND MARKET MAKING IT ONE OF THE SMALLER BOND MARKETS WE COULDN'T HAVE OWNED 1 BILLION IN CONVERTIBLES A FEW YEARS AGO SAYS MR LIPPER BECAUSE THERE WASN'T ENOUGH ISSUANCE TO MAKE THE MARKET LIQUID MR LIPPERS SAYS HIS FUNDS OWNED JUST 400 MILLION IN CONVERTIBLES IN 1991 THE GROWING POPULARITY OF THE CONVERTIBLE BOND AND CONVERTIBLE PREFERRED STOCK HOWEVER MEANS THAT ISSUERS CAN DEMAND LOWER YIELDS RELATIVE TO TREASURY SECURITIES THAN IN THE PAST WHICH MEANS LESS RETURN FOR INVESTORS CONVERTIBLES ARE LIKELY TO TOP THE LIST FOR TOP PERFORMERS IN 1993 BUT MONEY MANAGERS EXPECT RETURNS OF 10 TO 15 RATHER THAN 1992'S 2241 THEIR STRONG PERFORMANCE IN 1992 OCCURRED FOR MANY OF THE SAME REASONS AS THE PRIOR YEAR RISING CREDIT QUALITY DELEVERAGING OF DEBT AND FALLING INTEREST RATES WHAT'S INTERESTING IS THAT THE STOCK MARKET AS A WHOLE HAS DONE NOTHING SAYS MR LIPPER BUT THE INTEREST RATE ENVIRONMENT WAS FAVORABLE THIS WAS REALLY A BOND MARKET MOVE AND HE WARNS INVESTORS NOT TO EXPECT TOO MUCH IN 1993 ANYBODY WHO GOES INTO THE MARKET EXPECTING RETURNS OF 25 TO 29 THIS YEAR IS MAKING A BIG MISTAKE HE SAYS WE'RE EXPECTING A 15 RETURN OTHER MONEY MANAGERS AGREE THE LAST TWO YEARS HAVE BEEN SO GOOD SAYS PETER NORI A SENIOR SECURITIES ANALYST AT FRANKLIN RESOURCES INC WITH 650 MILLION OF CONVERTIBLE SECURITIES UNDER MANAGEMENT THAT I FIND IT HARD TO BELIEVE THAT THIS YEAR WILL BE AS GOOD IN ABSOLUTE TERMS BECAUSE YOU WONDER HOW MUCH MORE RATES CAN FALL AND THE EQUITY MARKETS CAN RISE BEFORE TAKING A BREATHER DESPITE A SHARP PRICE DROP FOR MANY JUNK BONDS IN OCTOBER WHEN MANY MUTUAL FUND INVESTORS CASHED IN THEIR PROFITS THIS SECTOR ENDED UP BEING ONE OF THE YEAR'S TOP PERFORMERS WITH A TOTAL RETURN OF 1816 ANALYSTS SAY THE MARKET BENEFITED FROM DECLINING INTEREST RATES THAT ALLOWED HIGHLY INDEBTED COMPANIES TO REFINANCE AT LOWER INTEREST RATES PERCEPTIONS AN ECONOMIC RECOVERY WOULD LIFT CORPORATE PROFITS AND A GROWING DEMAND BY INVESTORS FOR HIGHYIELDING SECURITIES RETURNS THIS YEAR ARE UNLIKELY TO BE AS STELLAR SAYS JOSEPH BENCIVENGA DIRECTOR OF HIGHYIELD RESEARCH AT SALOMON BROTHERS INC MY CURRENT ESTIMATE IS 10 TO 12 RETURNS FOR 1993 IT WILL BE BETTER THAN EQUITY MARKETS WHICH WILL BE IN SINGLE DIGITS ACCORDING TO BENJAMIN TROSKY MANAGER OF PACIFIC INVESTMENT MANAGEMENT CO'S HIGHYIELD FUND YOU CLEARLY AREN'T GOING TO SEE THE MOUTHWATERING DOUBLEDIGIT RETURNS BUT DEPENDING ON WHAT YOUR OUTLOOK IS FOR INTEREST RATES THERE IS SOME MERIT FOR CAREFULLY SELECTED JUNK BONDS MR TROSKY WARNS THAT THE QUALITY OF RECENT NEW ISSUES HAS DETERIORATED DRAMATICALLY BUT THERE ARE STILL BARGAINS IN THE MARKET MY CHIEF ORIENTATION IS FOR THE SLEEPATNIGHT CREDITS THAT DON'T DEPEND ON A SIGNIFICANT ECONOMIC RECOVERY TO HOLD THEIR OWN HE SAYS AMONG THOSE CREDITS MR TROSKY INCLUDES AMERICAN STANDARD AND OWENSILLINOIS PLANS BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS TO START AN ELECTRONIC QUOTE SYSTEM FOR JUNK BOND PRICES SHOULD HAVE AN IMPORTANT EFFECT ON THE JUNK BOND MARKET THIS YEAR SAYS MR BENCIVENGA THERE WILL BE MORE SUNSHINE ON THE MARKET HE SAYS IN TERMS OF REGULATORY OVERSIGHT THERE WILL BE SOME COMFORT FOR NEW INVESTORS THE SYSTEM COULD ALSO MEAN LOWER PRICES AS INEFFICIENT PRICING BY TRADERS IS SLOWLY WRUNG OUT OF THE MARKET SAY ANALYSTS A NUMBER OF MONEY MANAGERS BELIEVE THAT 30YEAR TREASURY ZEROCOUPON BONDS COULD BE A GOOD BET AGAIN IN 1993 AFTER RETURNS OF 558 IN 1992 ZEROCOUPON BONDS ARE SOLD AT A DEEP DISCOUNT TO FACE VALUE AND PAY NO INTEREST THEY ARE CONSIDERED ONE OF THE MOST VOLATILE OF FIXEDINCOME INVESTMENTS AND ARE HIGHLY VULNERABLE TO INFLATION ACCORDING TO MR ANDRES LONGTERM ZEROS WILL OUTPERFORM ALL OTHER SECTORS OF THE TREASURY MORTGAGEBACKED AND INVESTMENTGRADE CORPORATE MARKETS BECAUSE SMALLER PRICE CHANGES ARE NEEDED TO REAP LARGER RETURNS IN ZEROCOUPON BONDS AN INVESTOR WHO IS SUPREMELY CONFIDENT THAT LONGTERM YIELDS WOULD DROP MODESTLY BY YEAR END WOULD WANT TO TAKE A LOOK AT THESE BONDS WHEN THE INTEREST RATE GAP BETWEEN LONGTERM AND SHORTTERM RATES BEGAN TO NARROW FROM HISTORIC WIDTHS LATE LAST YEAR MANY MONEY MANAGERS BECAME CONVINCED THAT THE PROCESS WOULD CONTINUE THROUGHOUT THIS YEAR AS LONGTERM RATES DROPPED FURTHER MR ANDRES IS HOPEFUL THAT LONGTERM INTEREST RATES COULD PUSH THROUGH 7 IN THE NEXT YEAR BECAUSE OF GROWING CONFIDENCE IN PRESIDENTELECT CLINTON AND SUBDUED INFLATION ACCORDING TO MR ANDRES HE'S BEEN VERY CAREFUL NOT TO SHAKE UP THE MARKETS HE IS ATTUNED TO GETTING LONG BOND YIELDS DOWN HIS CABINET SELECTIONS HAVE BEEN FAIRLY WELL RECEIVED BY THE STREET MORTGAGEBACKED SECURITIES SUFFERED LATE IN THE SUMMER AS HOMEOWNERS RUSHED TO REFINANCE THE HOME LOANS THAT UNDERLIE MORTGAGEBACKED SECURITIES TO TAKE ADVANTAGE OF LOW INTEREST RATES THE REFINANCINGS PUSHED PRICES DOWN BUT ACCORDING TO MR ANDRES THE VOLATILITY OVER THE LAST YEAR TO YEAR AND A HALF IS GOING TO DECLINE IN A NONTRADING ACCOUNT THAT'S A PLUS FOR A TRADING ACCOUNT THAT IS PROBABLY NOT A PLUS MR ANDRES SAYS THAT INVESTORS AREN'T GOING TO FACE THE PREPAYMENT RISK WITH MORTGAGES NEXT YEAR LIKE YOU DID THIS YEAR 9301040016 930104 BUSINESS BRIEF AMERIBANC INVESTORS GROUP OFFERING OF RIGHTS SHARES RAISES TOTAL OF 365 MILLION AMERIBANC INVESTORS GROUP ANNANDALE VA SAID IT RAISED 365 MILLION IN AN EQUITY RIGHTS AND PUBLIC STOCK OFFERING COMPLETED WEDNESDAY UNDER TERMS OF THE OFFERING SHAREHOLDERS RECEIVED RIGHTS TO PURCHASE FOR 125 A SHARE FOUR SHARES FOR EVERY SHARE HELD WITH SHARES OFFERED TO THE PUBLIC AT THE SAME PRICE AMERIBANC ISSUED 254 MILLION SHARES AND 38 MILLION FOR OVERSUBSCRIPTION BOOSTING SHARES OUTSTANDING TO 355 MILLION THE COMPANY WILL USE 30 MILLION OF THE PROCEEDS AS A CAPITAL INFUSION FOR ITS PRINCIPAL SUBSIDIARY AMERIBANC SAVINGS BANK AS A RESULT THE UNIT'S TANGIBLE CAPITALTOASSETS RATIO WILL NOW BE 415 COMPARED WITH THE REGULATORY MINIMUM OF 150 THE CORE CAPITALTOASSETS RATIO WILL BE 550 COMPARED WITH A MINIMUM OF 4 AND THE RISKBASED CAPITALTOASSETS RATIO WILL BE 805 JUST ABOVE THE REGULATORY MINIMUM OF 8 9301040015 930104 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT NO MAJOR CORPORATE DEBT OR EQUITY ISSUES EXPECTED THIS WEEK LOS ANGELES DEPARTMENT OF WATER & POWER 200 MILLION OF 1993 ELECTRIC PLANT REVENUE BONDS VIA COMPETITIVE BIDDING SAN FRANCISCO CITY & COUNTY AIRPORTS COMMISSION APPROXIMATELY 1702 MILLION OF SECOND SERIES REFUNDING REVENUE BONDS FOR SAN FRANCISCO INTERNATIONAL AIRPORT INCLUDING 911 MILLION OF ISSUE 3 BONDS AND 791 MILLION OF ISSUE 4 BONDS VIA COMPETITIVE BIDING PENNSYLVANIA 375 MILLION OF 199293 SECOND SERIES TAX ANTICIPATION NOTES VIA COMPETITIVE BIDDING VIRGINIA 100 MILLION OF 1993 SERIES A PUBLIC FACILITIES GENERAL OBLIGATION BONDS VIA COMPETITIVE BIDDING GEORGIA 642 MILLION OF 1993 SERIES A IMPROVEMENT GENERAL OBLIGATION BONDS VIA COMPETITIVE BIDDING HUDSON COUNTY NJ 60 MILLION OF SOLID WASTE REVENUE BONDS FINANCIAL GUARANTY INSURANCE CO VIA A PAINEWEBBER INC GROUP HURON VALLEY SCHOOL DISTRICT MICH 574 MILLION OF REFUNDING GENERAL OBLIGATION BONDS VIA AN AG EDWARDS & SONS INC GROUP WISCONSIN 150 MILLION OF 1993 SERIES 1 GENERAL OBLIGATION REFUNDING BONDS VIA A BEAR STEARNS & CO GROUP 9301040014 930104 LETTERS TO THE EDITOR HE WANTS GOOD SERVICE AND HE WANTS IT NOW I TAKE EXCEPTION TO TWO OF DAN RICHARDS'S EXAMPLES IN HIS DEC 28 MANAGER'S JOURNAL SOUR SMELL OF POOR CUSTOMER SERVICE HIS REQUEST TO BE SEATED IN SMOKING AND THEN MOVED LATER TO NONSMOKING MIGHT SOUND REASONABLE TO HIM BUT DID HE EVER CONSIDER THE HAVOC THIS CAUSES DURING LUNCH HOUR AT A BUSY RESTAURANT AT AN OLIVE GARDEN RESTAURANT 20 MINUTES USUALLY MEANS HALFWAY THROUGH YOUR ENTREE WHAT IS THE SERVER SUPPOSED TO DO PACK UP YOUR DRINKS HALFEATEN LASAGNA ETC AND CART YOUR PARTY ACROSS THE ROOM WHO CONTINUES TO WAIT ON YOU YOUR OLD SERVER OR THE ONE WHOSE SECTION YOU ARE NOW IN HIS REQUEST FOR CONSOLIDATION OF 22 SEPARATE BILLS FROM A NATIONAL TEMP AGENCY MIGHT BE REASONABLE TO HIM BUT DID HE EVER CONSIDER THE AGENCY MIGHT NOT HAVE A CENTRAL ACCOUNTING DEPARTMENT IS IT TO WRITE NEW COMPUTER PROGRAMS AND INSTITUTE NEW PROCEDURES JUST FOR HIM WE HAVE ALL STOOD IN RESTAURANT LOBBIES AIRPORTS OR GROCERY CHECKOUT LINES WHILE SOME SELFCENTERED INDIVIDUAL DEMANDS MORE CUSTOMER SERVICE THAN THE OPERATION IS DESIGNED TO PROVIDE CONSIDERATION FOR ANYBODY BUT THEMSELVES IS NONEXISTENT MY EXPERIENCE IS THAT THE EMPLOYEES ARE USUALLY VERY SENSITIVE TO THE SITUATION AND IF THE PERSON FINALLY GETS HIS/HER WAY IT IS AT THE EXPENSE OF EVERYBODY ELSE IN LINE RAISING THE LEVEL OF CUSTOMER SERVICE SHOULD BE A GOAL OF ANY COMPETITIVE BUSINESS BUT AS A MARKETING CONSULTANT I BELIEVE MR RICHARDS COULD THINK OF A BETTER WAY TO GET HIS POINT ACROSS THAN MAKE SCENES IN RESTAURANT LOBBIES IT WOULD CERTAINLY BE MORE PLEASANT FOR THE REST OF US STANDING NEXT TO HIM IN LINE 9301040013 930104 LEISURE & ARTS DANCE A CRACKED NUTCRACKER' BY DALE HARRIS BROOKLYN NY IN 1991 THE BROOKLYN ACADEMY OF MUSIC PUT AMERICAN DANCE LOVERS IN ITS DEBT BY BRINGING OVER MARK MORRIS'S L'ALLEGRO IL PENSEROSO ED IL MODERATO FROM THE THEATRE DE LA MONNAIE IN BRUSSELS WHERE THE WORK WAS FIRST PRODUCED BAM RECENTLY PERFORMED A SIMILAR SERVICE BY IMPORTING MR MORRIS'S THE HARD NUT ANOTHER ELABORATE AND EXPENSIVE PRODUCTION CREATED AT THE MONNAIE DURING THE CHOREOGRAPHER'S THREE YEARS THERE AS DIRECTOR OF DANCE THE HARD NUT IS MR MORRIS'S TAKE ON THE NUTCRACKER WHILE HE HAS LEFT THE NARRATIVE OUTLINE OF ACT ONE ESSENTIALLY THE SAME HE HAS DRASTICALLY MODIFIED THAT OF ACT TWO IN PLACE OF THE TRADITIONAL DIVERTISSEMENT IN CANDY LAND MR MORRIS PRESENTS A COMICALLY GRUESOME TALE DERIVED FROM A SECTION OF NUTCRACKER AND MOUSEKING UNUSED BY MARIUS PETIPA WHEN ADAPTING THE ETA HOFFMANN STORY FOR THE BALLET IN 1892 THIS CONCERNS PRINCESS PIRLIPAT WHO DISFIGURED BY THE EVIL RAT QUEEN REGAINS HER BEAUTY ONLY WHEN A YOUNG SUITOR CRACKS THE WORLD'S HARDEST NUT WITH HIS TEETH AND THEN STEPS BACKWARD SEVEN TIMES THE FINAL STEP KILLS THE RAT QUEEN WHO SUDDENLY APPEARS UNDER HIS FEET THE STANDARD NUTCRACKER SET IN CENTRAL EUROPE DURING THE EARLY 19TH CENTURY IS PERMEATED BY A SENSE OF FAIRYTALE WONDER THE HARD NUT SET IN MIDDLE AMERICA DURING THE 1960S BY A SENSE OF SATIRICAL FANTASY THE STANDARD BALLET BESPEAKS BIEDERMEIER SECURITY THE MORRIS REVISION EXISTENTIAL DISQUIET THIS DARK ABSURDIST VIEW OF CHILDHOOD ITS TERRORS AND FIERCE LOYALTIES GREW OUT OF CONVERSATIONS WITH THE CARTOONIST CHARLES BURNS WHO COLLABORATED WITH THE CHOREOGRAPHER ON THE VISUAL SIDE OF THE PRODUCTION AND DIRECTLY INFLUENCED THE STYLE OF ADRIANNE LOBEL'S BRILLIANT BLACKANDWHITE SETS AND MARTIN PAKLEDINAZ'S COLORFUL COSTUMES AS A RESULT THE HARD NUT IS VERY DIFFERENT FROM THE BALLET THAT PARENTS ARE USED TO TAKING THEIR CHILDREN TO DURING THE HOLIDAY SEASON IT IS LESS POLITE LESS SOOTHING LESS CONGRATULATORY ABOUT THE STATE OF CHILDHOOD IN THE NUTCRACKER THE SOCIAL MILIEU IS IDYLLIC IN THE HARD NUT IT IS MOCKING EVEN GROTESQUE THE YOUNGER BROTHER OF THE BALLET'S HEROINE MARIE CLARICE MARSHALL IS NOT MERELY A TEASE HE'S A MONSTER IN ADDITION MARIE NOW HAS A SISTER LOUISE TINA FEHLANDT AN UNREDEEMABLE BRAT THEIR PARENTS THE STAHLBAUMS ARE INEFFABLY SUBURBAN AND SELFCONGRATULATORY MRS STAHLBAUM WAS PLAYED BY A MALE DANCER PETER WING HEALEY IN DRAG SO WAS THE MAID KRAIG PATTERSON WHO TEETERED ABOUT ON FULL POINTE THE GUESTS AT THE HOLIDAY PARTY DRESSED IN BELLBOTTOMS AND MINISKIRTS ARE A BUNCH OF '60S TRENDIES WHO CAN HARDLY KEEP THEIR HANDS OFF ONE ANOTHER THE FESTIVITIES IN ANY CASE ARE NOT PRIMARILY FOR THE CHILDREN BUT FOR THE ADULTS WHO DRINK PET AND QUARREL IN BETWEEN THEY DO THE FRUG THE STROLL THE BUMP AND THE HOKEYPOKEY AS WELL AS THE POLKA AND THE WALTZ ALL IN EXACTLY THE SAME SPACEDOUT WAY FOR THEM THE HOLIDAY SEASON IS SIMPLY AN EXCUSE FOR A PARTY THEY ENJOY THE MECHANICAL DOLLS IN THIS VERSION BARBIE AND ROBBIE THE ROBOT MORE THAN THE KIDS DO WHEN AFTER MIDNIGHT THE STAHLBAUM HOUSEHOLD IS TRANSMOGRIFIED BY THE MAGIC OF THE HALFBENIGN HALFSINISTER FAMILY FRIEND DROSSELMEIER ROB BESSERER MARIE DOES NOT SO MUCH ESCAPE INTO A DREAM WORLD AS CONFRONT A LARGER AND MORE BIZARRE VERSION OF THE GROWNUP SUBURBAN REALITY SHE HAS ALWAYS KNOWN A WORLD THE IMAGINATIVE REACH OF WHICH IS DETERMINED BY WHAT APPEARS ON TELEVISION TELEVISION FRAMES THE ACTION OF THE HARD NUT WHEN THE CURTAIN GOES UP ALL THREE STAHLBAUM CHILDREN ARE WATCHING IT AT THE END MARIE HAVING FOUND TRUE LOVE IN THE SHAPE OF DROSSELMEIER'S HEROIC NEPHEW JEANGUILLAUME WEIS WHOM SHE HAS WITNESSED CRACKING THE HARD NUT DOES NOT RETURN HOME EITHER IN A REINDEER SLEIGH AS SHE DOES IN GEORGE BALANCHINE'S VERSION OR IN A WALNUT BOAT AS SHE DOES IN SO MANY OTHER PRODUCTIONS INSTEAD SHE LEAVES HOME FOREVER REAPPEARING THERE ONLY AS A SOUND BITE ON THE FAMILY'S TELEVISION SCREEN IN THE HARD NUT VIDEO IS THE NEVERNEVER LAND OF FULFILLMENT MORE REAL FOR THE STAHLBAUM CHILDREN THAN WHAT GOES ON AROUND THEM BECAUSE IT IS NEATER LESS INVOLVING PREPACKAGED NOTWITHSTANDING ALL THESE CHANGES THE HARD NUT IS THE WORK NOT OF A DESECRATER BUT OF A CREATOR SOMEONE FULLY COGNIZANT OF HIS ARTISTIC HERITAGE JUST BEFORE THE CURTAIN ROSE ON THE PERFORMANCE OF DEC 18 THE CHOREOGRAPHER'S VOICE SUDDENLY EMERGED FROM THE LOUDSPEAKERS WITH THE INFORMATION THAT IT WAS 100 YEARS TO THE DAY SINCE PETER ILICH TCHAIKOVSKY'S BALLET HAD RECEIVED ITS WORLD PREMIERE IN ST PETERSBURG WHILE THE AUDIENCE CLEARLY DELIGHTED TO BE PART OF DANCE HISTORY WAS CHEERING THE NEWS MR MORRIS YELLED HIT IT MAESTRO AND THE HARD NUT WEIRD IRREVERENT AND BEAUTIFUL GOT UNDER WAY WHAT GIVES THE NUTCRACKER ITS CONTINUING LIFE IS TCHAIKOVSKY'S GLORIOUS SCORE AND TO THIS MR MORRIS MOST MUSICAL OF CONTEMPORARY DANCE MAKERS HAS BEEN FAITHFUL MORE SO EVEN THAN BALANCHINE WHO CUT SOME PAGES CHANGED THE ORDER OF THE GRAND PAS DE DEUX IN ACT TWO AND SANCTIONED THE USE OF A RECORDING OF THE BOYS' CHOIR IN THE SNOWFLAKES SCENE HERE MR MORRIS WHO HAS RESTORED THE CHOIR IS AT HIS MOST INVENTIVE AND ILLUMINATING THE SWIFTLY EVOLVING PATTERNS ARE INGENIOUS AND EXQUISITE AND THE ENTIRE DANCE HAS A RHYTHMIC ELAN THAT SWEEPS THE AUDIENCE ALONG USING FEMALE AND MALE DANCERS WITHOUT DIFFERENTIATING BETWEEN THEM ALL WEAR TUTUS AND SOME OF THE MEN DANCE ON POINTE THE CHOREOGRAPHER EXTENDS THE BOUNDS OF BEAUTY TO INCLUDE THE GROTESQUE AND THE CAMP BUT THE BALLET LACKS A RESOLUTION NOT ONLY DOES THE PRINCESS PIRLIPAT SEQUENCE EXCLUDE MARIE FROM THE CENTER OF OUR CONCERN FOR TOO LONG THE CONCLUDING PAS DE DEUX FOR HER AND YOUNG DROSSELMEIER IS UNFOCUSED THE EMOTIONAL CLIMAX OF THE HARD NUT COMES EARLIER IN THE ACT ONE PAS DE DEUX BETWEEN DROSSELMEIER AND HIS NEPHEW A DANCE FULL OF AMBIGUITY AND INSIGHT WITH ITS IMAGES OF TEACHER AND PUPIL CREATOR AND CREATION PARENT AND CHILD LOVER AND BELOVED A DANCE AT ONCE HOMOEROTIC AND UNIVERSAL THAT TRANSCENDS GENDER AND ACHIEVES A SUBLIMITY BEYOND LITERALNESS 9301040012 930104 POLITICS & POLICY A SMALL ARMY TOILS TO ENSURE CLINTON MAKES THE RIGHT IMPRESSION ON HIS FIRST DAY AT WORK BY JILL ABRAMSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATS HAVE BEEN OUT OF THE INAUGURATION BUSINESS FOR 16 YEARS AND THEY ARE DESPERATE TO MAKE A SUCCESS OF THIS ONE URGENCY IS IN THE AIR AT THE NAVY YARD HERE WHERE SCORES OF NEW DEMOCRATS ARE ENLISTING FOR BILL CLINTON'S VOLUNTEER ARMY OF INAUGURAL FOOTSOLDIERS NEAR THE DOORWAY CONVENIENTLY THERE IS A LARGE BOX MARKED RESUMES THE INAUGURATION IS OF COURSE A GREAT PLACE TO GET A FOOT IN THE NEW ADMINISTRATION'S DOOR BLUE AND WHITE PAINTED SIGNS SHOW THE COUNTDOWN TO INAUGURATION DAY THIS IS LIKE SETTING UP A FORTUNE 100 COMPANY IN TWO WEEKS RUNNING IT FOR TWO MONTHS AND THEN TAKING IT APART OBSERVES RICHARD MINTZ WHO RUNS THE LARGE MEDIA OPERATION AT THE INAUGURAL COMMAND POST IF IT'S DONE PROPERLY NO ONE PAYS ATTENTION IF THERE'S A GLITCH EVERYONE NOTICES ADDS RON WALKER WHO HELPED RUN THE FESTIVITIES FOR PRESIDENT NIXON IN 1969 AND PRESIDENT REAGAN IN 1985 IF IT'S NOT RUN WELL PEOPLE WILL SAY YOU WON'T RUN THE COUNTRY WELL FOR DEMOCRATS SEEKING TO PROVE THEY KNOW HOW TO MANAGE AND RUN A BUSINESS THE POTENTIAL FOR INAUGURAL HAYWIRE IS DAUNTING ALREADY THERE HAVE BEEN A FEW GLITCHES PLANS TO OPEN THE DOORS OF THE WHITE HOUSE TO THE PUBLIC THE DAY AFTER THE INAUGURATION AN HOMAGE TO ANDREW JACKSON HAD TO BE SCRUBBED IT TURNS OUT THAT THE WHITE HOUSE WAS PRACTICALLY TRASHED AFTER PRESIDENT JACKSON'S POPULIST DISPLAY AND THE SECRET SERVICE NIXED THE IDEA BECAUSE OF CONCERNS ABOUT CROWD CONTROL SO TICKETS WILL NOW BE REQUIRED TO GAIN ADMISSION TO THIS AND ALMOST ALL OTHER INAUGURAL EVENTS WHAT IF THERE IS A BREAKDOWN IN THE CARAVAN OF BUSES CARRRYING THE HOST OF DIGNITARIES INCLUDING THE PRESIDENTELECT HIMSELF FROM MONTICELLO INTO WASHINGTON WHAT IF THE WEATHER DOESN'T COOPERATE AS WAS THE CASE IN 1984 WHEN SUBFREEZING WEATHER FORCED THE CANCELLATION OF THE INAUGURAL PARADE THE BIGGEST HEADACHE OF ALL HOW TO KEEP PRESIDENTELECT CLINTON A NOTORIOUS SCHMOOZER AND GLADHANDER ON SCHEDULE NO WONDER RAHM EMANUEL THE GENERAL DIRECTING SOME 300 PAID WORKERS AND EVEN MORE VOLUNTEERS LOOKS GAUNT AND TIRED THE 33YEAROLD MR EMANUEL WHO YEARS AGO TURNED DOWN A SCHOLARSHIP TO THE JOFFREY BALLET SCHOOL IS WORKING OFF TENSION BY BENDING HIS WAIST AND CRACKING HIS BACKBONE HE HAS NOT ONLY HAD TO RAISE 20 MILLION IN THE FEW WEEKS SINCE ELECTION DAY BUT ALSO TO DEAL WITH THE ENDLESS GRIPES FROM PEOPLE WHO FEEL SNUBBED TO VOLUNTEERS COMPLAINING THAT MR EMANUEL'S DRESS CODE DOESN'T ALLOW FOR BLUE JEANS SO MUCH FOR GENERATIONAL CHANGE THIS IS LIKE BEING CEO OF WHAT MR EMANUEL SAYS AS HE PAUSES TO DRAW THE RIGHT ANALOGY OF 3500 BAR MITZVAHS A VETERAN OF CHICAGO POLITICS MR EMANUEL GREW UP IN THE CITY'S MOSTLY JEWISH 49TH WARD UNTIL THE AGE OF 18 HE RETAINED DUAL USISRAELI CITIZENSHIP DURING THE PERSIAN GULF WAR MR EMANUEL VOLUNTEERED ON AN ISRAELI ARMY BASE NEAR THE LEBANESE BORDER HELPING TO REPAIR MILITARY VEHICLES THEN HE MOVED TO LITTLE ROCK AND BECAME MR CLINTON'S TOP MONEY MAN I THOUGHT I WAS HYPER UNTIL I MET RAHM SAYS SKIP RUTHERFORD AN ARKANSAS BUSINESSMAN WHO HELPED MR EMANUEL RAISE MONEY IN THE CLINTON CAMPAIGN NOT SINCE GENERAL SHERMAN MARCHED ON ATLANTA HAD THE SOUTH SEEN ANYTHING LIKE RAHM EMANUEL MR EMANUEL LAUNCHED A MASSIVE EFFORT TO MAKE SURE MR CLINTON'S CAMPAIGN WAS THE FINANCIAL PACESETTER DURING THE PRIMARIES HE HELPED RAISE ANOTHER 20 MILLION IN LARGE SOFT MONEY CONTRIBUTIONS FROM WEALTHY INDIVIDUALS AND CORPORATIONS FOR THE GENERAL ELECTION THEN TURNED AROUND AND HIT UP MANY OF THESE SAME CONTRIBUTORS FOR ANOTHER 20 MILLION IN LOANS FOR THE INAUGURATION THE MONEY IS LENT INTERESTFREE TO AN INAUGURAL GUARANTY FUND MR EMANUEL GOT LOAN COMMITMENTS RANGING FROM 5000 TO 100000 WITH THE BULK COMING IN AT THE HIGHER END OF THE SCALE AMONG THE LENDERS ARE LABOR UNIONS AND LARGE CORPORATIONS SUCH AS COCACOLA CO BANKAMERICA FIRST BOSTON GENERAL ELECTRIC CO MERRILL LYNCH & CO MERCK & CO REVLON AND SHELL OIL CO TO NAME JUST A FEW WEALTHY DEMOCRATIC CONTRIBUTORS SUCH AS MOVIE AND TELEVISION EXECUTIVE BARRY DILLER AND CALIFORNIA ATTORNEY WILLIAM LERACH ARE ALSO AMONG THE LENDERS MR EMANUEL AND MR MINTZ DEFEND THE PROPRIETY OF FINANCING THE INAUGURATION THROUGH SHORTTERM LOANS IT HAS BEEN DONE THIS WAY FOR SEVERAL DECADES AND SAY LENDERS DON'T GET SPECIAL FAVORS OR ACCESS THE LOANS WILL BE REPAID WITH PROCEEDS OF TICKET SALES FOR THE 10 INAUGURAL BALLS SALES OF INAUGURAL COMMEMORATIVE ITEMS AND ADVERTISING REVENUE FROM THE PRESIDENTIAL GALA CONCERT THAT WILL BE TELEVISED BY CBS ON JAN 19 SO FAR THE COMMEMORATIVES WHICH INCLUDE SUCH ITEMS AS A COOKBOOK PENNED BY THE MOTHER OF CLINTON CAMPAIGN STRATEGIST JAMES CARVILLE ARE SELLING BRISKLY IF THE INAUGURAL COMMITTEE BREAKS EVEN ALL THE LOANS WILL BE REPAID IF IT ENDS UP IN THE BLACK AS WAS THE CASE WITH RONALD REAGAN'S FESTIVITIES EXTRA MONEY WILL BE DONATED TO VARIOUS CHARITIES IF THE INAUGURATION WINDS UP IN DEBT AS THE 1988 BUSH COMMITTEE FOUND ITSELF SOME LOANS WILL HAVE TO BE FORGIVEN ADDITIONAL MONEY IS GOING TO SOMETHING THE CLINTON TEAM CALLS THE PRESIDENTIAL INAUGURAL FOUNDATION THESE FUNDS ALSO RAISED FROM AN ARRAY OF COMPANIES AND INDIVIDUALS ARE USED TO PAY FOR THE MANY PUBLIC AND FREE EVENTS DURING INAUGURATION WEEK JAN 1721 AND WON'T BE REPAID THE FREE EVENTS BEING UNDERWRITTEN BY THE FOUNDATION INCLUDE TWO CONCERT GALAS TWO CHILDREN'S PROGRAMS A PARADE AND AN OUTDOOR FESTIVAL CALLED AMERICA'S REUNION ON THE MALL WHICH WILL FEATURE AN ARRAY OF MUSICAL TALENT AS WELL AS ROWS OF HEATED TENTS FILLED WITH CRAFTS AND FOODS A NUMBER OF CORPORATIONS AND BUSINESS EXPERTS HAVE CONTRIBUTED SERVICES AND SKILL TO THE INAUGURATION ANDREW ROGAL AN EARLY CLINTON SUPPORTER WHO MANAGES A CONVENTIONPLANNING BUSINESS IN MASSACHUSETTS IS OVERSEEING LOGISTICS INCLUDING THE MAMMOTH TASK OF MAKING SURE THE CAMPAIGN'S SUPPORTERS AND TOP DEMOCRATS RECEIVE THE RIGHT INVITATIONS AND TICKETS TO THE RIGHT EVENTS MORE THAN 300000 HAVE BEEN MAILED AND TICKETS WERE SAFEGUARDED IN A LOCKED VAULT HYATT HOTELS DONATED CUSTOMERSERVICE MANAGERS TO HELP THE COMMITTEE TRAIN VOLUNTEERS TO HANDLE THE DELUGE OF INQUIRIES FROM THOSE LUCKY ENOUGH TO HAVE RECEIVED INVITATIONS AT&T DONATED TELEPHONES OUR MAIN GOAL IS TO MAKE SURE THE GOVERNOR CAN PROJECT THE IMAGE HE WANTS TO PROJECT MR EMANUEL SAYS SO FAR THAT HAS MEANT LOWERING THE COST OF TICKETS TO MANY EVENTS TO ABOUT 125 THE CHEAPEST TICKETS FOUR YEARS AGO WERE 175 OVERSEEING THE VISUAL AND MUSICAL PARTS OF THE INAUGURATION IS MR CLINTON'S CLOSE FRIEND HARRY THOMASON THE TELEVISION PRODUCER WHO HELPED STAGE THE SUCCESSFUL DEMOCRATIC CONVENTION IN NEW YORK HARRY IS WATCHING OVER THE WHOLE IMAGE PART SAYS MR EMANUEL THAT PART WILL INCLUDE A VAST INAUGURAL PARADE WITH AT LEAST TWO ELVIS PRESLEY IMPERSONATORS THE CLINTON TEAM HAS BROUGHT SEVERAL INNOVATIONS INCLUDING AN INAUGURAL HISTORIAN THE BUS RIDE FROM MONTICELLO WAS THE HISTORIAN'S IDEA A THROWBACK TO GEORGE WASHINGTON'S COACH RIDE FROM MOUNT VERNON TO NEW YORK AND ABRAHAM LINCOLN'S HISTORIC TRAIN VOYAGE INTO WASHINGTON MR EMANUEL HOPES TO BRING EVERYTHING OFF UNDER BUDGET HE WON'T QUOTE AN EXACT FIGURE SAYING ONLY THAT THE CLINTON TEAM EXPECTS TO SPEND LESS THAN THE 29 MILLION THE BUSH INAUGURATION COMMITTEE SPENT FOUR YEARS AGO I WANT PEOPLE TO SAY THEY RAN THE COUNTRY THE WAY THEY RAN THE INAUGURATION HE SAYS THIS IS THE FIRST TASK OF GOVERNING 9301040011 930104 MUTUAL FUNDS JANUS TWENTY IS LATEST FUND TO BAR THE DOOR BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE TOPPERFORMING JANUS TWENTY FUND IS JOINING THE BURGEONING LIST OF STOCK MUTUAL FUNDS THAT WON'T ACCEPT MONEY FROM NEW INVESTORS WITH 32 BILLION IN ASSETS THE DENVERBASED FUND IS ONE OF THE LARGEST EVER TO STOP SELLING SHARES TO NEW INVESTORS WE WANT TO CONTINUE TO RUN THE FUND AS A CONCENTRATED PORTFOLIO SAYS THOMAS MARSICO THE FUND'S 37YEAROLD PORTFOLIO MANAGER WE THINK WE CAN GET BETTER PERFORMANCE THAT WAY JANUS TWENTY'S ACTION FOLLOWS A RASH OF OTHER STOCKFUND CLOSINGS THESE CLOSINGS ARE JUST ONE SIGN OF THE HUGE POPULARITY OF STOCK FUNDS WHICH LAST YEAR ATTRACTED A RECORD 686 BILLION THERE ARE SOME FUNDS WHERE THE PUBLIC'S APPETITE FOR A FUND CAN OUTSTRIP THE ABILITY TO MANAGE THE MONEY WELL SAYS JON FOSSEL CHAIRMAN OF NEW YORK'S OPPENHEIMER MANAGEMENT CORP IT'S AN ISSUE IF THE FUND BUYS SMALL THINLY TRADED ISSUES OR IF THE FUND GETS HUGE IN ALL THERE NOW ARE MORE THAN 40 STOCK AND BOND FUNDS THAT NO LONGER ACCEPT MONEY FROM NEW INVESTORS ACCORDING TO FUND RESEARCHERS LIPPER ANALYTICAL SERVICES THE LIST INCLUDES SOME OF THE FUND INDUSTRY'S TOP LONGTERM PERFORMERS INCLUDING ACORN FUND CGM CAPITAL DEVELOPMENT FUND FPA PARAMOUNT FUND MUTUAL SHARES FUND SEQUOIA FUND AND VANGUARD WINDSOR FUND ADDED TO THE LIST IN THE PAST YEAR WERE BABSON ENTERPRISE FUND MONTGOMERY SMALL CAP FUND SKYLINE SPECIAL EQUITIES FUND AND TNE GROWTH FUND ACCORDING TO MORNINGSTAR INC A CHICAGO FUND RESEARCH FIRM IN 1991 JANUS VENTURE FUND GT LATIN AMERICA GROWTH FUND AND NICHOLAS LIMITED EDITION ALSO STOPPED SELLING SHARES IN THE PAST OTHER POPULAR FUNDS INCLUDING FIDELITY LOWPRICED STOCK FUND AND OPPENHEIMER GLOBAL BIOTECH FUND HAVE BEEN SO INUNDATED WITH CASH THAT THEY FELT COMPELLED TO TEMPORARILY STOP ACCEPTING NEW MONEY MORE FUNDS ARE LIKELY TO CLOSE IN THE FUTURE INDEED THE 400 MILLION MONETTA FUND HAS SAID IT WILL CLOSE ONCE ASSETS HIT 500 MILLION JANUS TWENTY FUND WILL CLOSE TO NEW INVESTORS ON FEB 12 BUT MANY INVESTORS WHO RUSH TO BUY FUND SHARES WILL FIND IT IS ALREADY TOO LATE JANUS GROUP OF MUTUAL FUNDS SAYS THAT FROM NOW ON IT WILL ONLY SEND OUT NEWACCOUNT APPLICATIONS FOR THE FUND TO PEOPLE WHO ALREADY ARE JANUS GROUP SHAREHOLDERS JANUS GROUP SHAREHOLDERS AND THOSE ALREADY HOLDING NEWACCOUNT APPLICATIONS OR WHO MANAGE TO GET HOLD OF ONE WILL HAVE UNTIL FEB 12 TO OPEN AN ACCOUNT WHY IMPOSE THESE RESTRICTIONS JANUS TWENTY HAS ALREADY BALLOONED IN SIZE IN THE PAST 12 MONTHS TO 32 BILLION FROM 13 BILLION THE FUND GROUP FEARS THAT NEWS OF THE IMMINENT CLOSING OF THE FUND COULD PROMPT A FURTHER INFLOW OF MONEY SUCH FEARS ARE PROBABLY WELL FOUNDED IN LATE SEPTEMBER 1991 JANUS GROUP CLOSED ANOTHER FUND THE 17 BILLION JANUS VENTURE FUND BUT THE CLOSING ANNOUNCED IN JUNE 1991 TURNED INTO A FEEDING FRENZY AS INVESTORS SCRAMBLED TO GET INTO THE FUND BEFORE THE DOOR SLAMMED SOME 392 MILLION POURED INTO THE FUND BETWEEN JUNE AND SEPTEMBER FUND CLOSINGS ARE LIKELY TO BECOME EVEN MORE COMMON IN THE FUTURE AS OTHER TOPPERFORMING MUTUAL FUNDS ARE OVERWHELMED BY A FLOOD OF MONEY FROM RAVENOUS INVESTORS SKYLINE SPECIAL EQUITIES FUND A SMALLCOMPANY STOCK FUND CLOSED LAST MONTH IN AUGUST THE FUND HAD DROPPED ITS 385 SALES COMMISSION PROMPTING A HUGE INFLUX OF MONEY FROM NOLOAD FUND INVESTORS WHO LOOK TO BUY FUNDS THAT DON'T CHARGE A SALES COMMISSION OVER THE NEXT FOUR MONTHS THE FUND'S ASSETS SURGED TO 150 MILLION FROM 60 MILLION WILLIAM DUTTON THE FUND'S PORTFOLIO MANAGER THINKS THE FUND'S PERFORMANCE COULD HAVE SUFFERED IF IT WAS ALLOWED TO GROW EVEN LARGER IF YOU'RE INVESTING IN THE PHILIP MORRISES AND COCACOLAS OF THE WORLD THERE'S NOT MUCH LIMITATION ON HOW MUCH MONEY YOU CAN MANAGE SAYS MR DUTTON BUT IF YOU'RE INVESTING IN SMALLCAP STOCKS THERE IS A LIMITATION IN THE PAST MANY OF THE FUNDS THAT HAVE CLOSED HAVE BEEN SMALLCOMPANY STOCK FUNDS JANUS TWENTY FUND BY CONTRAST INVESTS MOSTLY IN LARGERCOMPANY STOCKS BUT MR MARSICO NOTES THAT THE FUND IS CONSTRAINED BY ITS FOCUS ON A LIMITED NUMBER OF STOCKS MR MARSICO TRIES TO KEEP 75 OF THE FUND'S STOCKMARKET MONEY CONCENTRATED IN 20 COMPANIES CURRENT LARGE HOLDINGS INCLUDE AMGEN INC BANKAMERICA CORP AND MERRILL LYNCH & CO OVER THE FIVE YEARS ENDED NOV 30 JANUS TWENTY RETURNED 2178 COMPARED WITH A 1132 AVERAGE FOR DIVERSIFIED US STOCK FUNDS IN ALL MR MARSICO MANAGES OVER 6 BILLION INCLUDING THE 300 MILLION JANUS GROWTH & INCOME FUND WHICH IS STILL OPEN TO NEW INVESTORS JANUS TWENTY COULD REOPEN AT SOME TIME SAYS MR MARSICO BUT I DON'T ENVISAGE THAT IN THE NEXT 18 TO 24 MONTHS ALBERT NICHOLAS MANAGER OF THREE MILWAUKEEBASED STOCK FUNDS IN 1991 CLOSED HIS SMALLCOMPANY STOCK FUND NICHOLAS LIMITED EDITION BUT MR NICHOLAS RECKONS THAT UNLESS YOU'RE INVESTING IN THE SMALLEST OF SMALL STOCKS IT MAY NOT HELP PERFORMANCE TO CLOSE A FUND OUR NICHOLAS FUND HAS NEVER CLOSED AND IT'S DONE PRETTY WELL NOTES MR NICHOLAS I THINK THERE ARE SOME BENEFITS TO CASH FLOW IT KEEPS YOU ON YOUR TOES IT MAKES YOU CONTINUE TO LOOK FOR VALUES IN THE MARKETPLACE WITH ALL THE CLOSINGS THAT ARE HAPPENING IN THE FUND INDUSTRY ONE FUND IS GOING THE OTHER WAY EVERGREEN LIMITED MARKET FUND A SMALLSTOCK FUND RECENTLY ANNOUNCED IT WAS REOPENING TO NEW INVESTORS SMALLCAP STOCKS WERE CERTAINLY A BUBBLE EARLIER THIS YEAR AND WE DIDN'T WANT TO BE PRESSURED INTO BUYING SAYS STEPHEN LIEBER PRESIDENT OF LIEBER & CO THE FUND'S INVESTMENT ADVISER NOW HOWEVER HE RECKONS THE SMALLSTOCK MARKET IS MUCH MORE ATTRACTIVEHENCE THE DECISION TO OPEN THE FUND 9301040009 930104 BUSH YELTSIN SIGN TREATY FOR BIG NUCLEARARMS CUTS START II PACT SETS CUTBACKS IN WARHEADS MISSILES BOMBERS FOR BOTH SIDES BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW ECHOING EACH OTHER'S HOPES FOR A MORE PEACEFUL WORLD PRESIDENT BUSH AND RUSSIAN PRESIDENT BORIS YELTSIN SIGNED A TREATY THAT SETS THE MOST SWEEPING NUCLEARARMS REDUCTIONS IN HISTORY BUT RAISES NEW CHALLENGES FOR TRUST AND COOPERATION BETWEEN THE FORMER ADVERSARIES THE TREATY KNOWN AS START II WOULD REDUCE US AND RUSSIAN STOCKPILES OF LONGRANGE NUCLEAR WARHEADS TO ABOUT A THIRD OF CURRENT LEVELS IT OFFERS SIGNIFICANT GAINS FOR BOTH COUNTRIES AS DRASTIC PARALLEL CUTS ARE MADE IN NUCLEAR WARHEADS AND THE MISSILES AND BOMBERS THAT WOULD HAVE DELIVERED THEM RUSSIA WILL NO LONGER HAVE TO COMPETE IN A MASSIVE AND INCREASINGLY TECHNOLOGICAL ARMS RACE IT COULD NO LONGER AFFORD THE US GAINS GREATER ASSURANCES THAT ITS ONETIME ENEMY IS COMMITTED TO ITS NEW COURSE OF FRIENDSHIP AND COOPERATION WITH THE WEST AND COST SAVINGS OF ITS OWN THE TREATY SIGNED TODAY REPRESENTS A MAJOR STEP TOWARD FULFILLING MANKIND'S CENTURIESOLD DREAM OF DISARMAMENT MR YELTSIN SAID AFTER SHAKING HANDS WITH MR BUSH AND FLASHING HIM A WARM GRIN AT A GLITTERING KREMLIN CEREMONY SUNDAY THE TREATY BELONGS TO A NEW ERA AND WAS CONCLUDED BY PARTNERS WHO NOT ONLY TRUST EACH OTHER BUT ALSO ASSIST EACH OTHER THE RUSSIAN LEADER SAID MR BUSH WHO HAS ONLY TWO WEEKS LEFT IN OFFICE AND SEEMED WEARY AFTER HIS VISIT TO US TROOPS IN SOMALIA ECHOED THE SENTIMENT SAYING THE TREATY MEANS A FUTURE FAR MORE FREE FROM FEAR THE AGREEMENT THE FIRST MAJOR DISARMAMENT TREATY MR YELTSIN HAS SIGNED AS RUSSIAN PRESIDENT STRENGTHENS HIS ROLE AS A WORLD LEADER PRESIDENT BUSH OFFERED NEW PRAISE OF MR YELTSIN FOR PUSHING THE DISARMAMENT PROCESS FURTHER THAN FEW BELIEVED POSSIBLE JUST ONE YEAR AGO RECOGNIZING THIS WAS LIKELY HIS LAST ENCOUNTER WITH PRESIDENT BUSH MR YELTSIN WASTED NO TIME AFTER THE SIGNING CEREMONY INVITING PRESIDENTELECT CLINTON TO DISCUSS FURTHER ISSUES OF BILATERAL AND INTERNATIONAL CONCERN MR YELTSIN SAID HE HOPED THERE WOULD BE NO LULL IN OUR RELATIONS WITH THE NEW ADMINISTRATION BECAUSE ANY LULL IN BILATERAL RELATIONS BETWEEN THE SUPERPOWERS WOULD GIVE CAUSE FOR CONCERN THE AMBITIOUS START II AGREEMENT AND THE HOST OF POLITICAL AND ECONOMIC PROBLEMS FACING THE RUSSIAN PRESIDENT WILL SURELY TEST THE NEW RELATIONSHIP AND MR YELTSIN'S ROLE IN IT RUSSIAN OFFICIALS HAVE OPENLY WORRIED THAT MR CLINTON WON'T BE FORTHCOMING WITH ECONOMIC AID OR THAT HE WILL BE TOO PREOCCUPIED INITIALLY WITH DOMESTIC CONCERNS TO FOCUS ON RUSSIA WHAT'S MORE RUSSIAN POLITICAL OPPOSITION TO MR YELTSIN HAS BEEN GATHERING MOMENTUM MOSTLY ON DOMESTIC MATTERS BUT INCREASINGLY BECAUSE OF HIS EAGERNESS TO REACH NUCLEAR ACCOMMODATION WITH THE US ALSO DISARMAMENT AGREEMENTS WILL HAVE TO BE REACHED WITH THREE OTHER FORMER SOVIET REPUBLICS PARTICULARLY UKRAINE AND THE COST OF DISMANTLING THE WEAPONS OF MASS DESTRUCTION WILL BE HIGH FOR MR YELTSIN THE FIRST OBSTACLE WILL BE RATIFICATION OF THE TREATY BY THE RUSSIAN PARLIAMENT WHERE CONSERVATIVES HAVE CRITICIZED HIS ECONOMIC REFORMS AND HIS OUTSPOKEN DESIRE TO COOPERATE WITH THE US LAST MONTH THE PARLIAMENT FORCED MR YELTSIN TO DUMP HIS ACTING PRIME MINISTER YEGOR GAIDAR AND THE OPPOSITION HAS SUGGESTED IT WILL SEEK THE RESIGNATION OF THE FOREIGN MINISTER ANDREI KOZYREV WHO IS SEEN AS TOO FAVORABLE TO THE WEST IN TREATIES SUCH AS START II A LOT OF PEOPLE IN THE OPPOSITION WON'T MISS A CHANCE TO KICK YELTSIN TO SAY HE NOT ONLY CAN'T CARRY OUT ECONOMIC REFORM BUT ALSO CAN'T LOOK OUT AFTER RUSSIA'S INTERESTS IN ARMS CONTROL SAID A RUSSIAN ARMSCONTROL OFFICIAL WHO ASKED NOT TO BE NAMED THEY WILL SAY WE ARE SELLING OUT EVERYTHING WE HAVE ACCOMPLISHED IN 35 YEARS IN PARTICULAR CONSERVATIVES OBJECT TO THE TREATY'S REQUIREMENT THAT RUSSIA GIVE UP ITS MOST SOPHISTICATED MISSILE THE SS18 THE SS18S WITH 10 WARHEADS EACH POWERFUL ENOUGH TO BLOW UP A CLEVELANDSIZE CITY ARE ALREADY DOWN TO 154 FROM 308 UNDER START I SIGNED IN JULY 1991 THEY ALSO OBJECT TO THE COSTS THE LACK OF AN OUTLINED ECONOMIC AGREEMENT THAT WILL HELP PAY FOR THE REDUCTIONS AS WELL AS THE SPEED WITH WHICH THE TREATY WAS CONCLUDED THE FORMER COMMUNIST PARTY NEWSPAPER PRAVDA COMMENTED LAST WEEK THAT MANY PEOPLE MAY NOT REALIZE THE FATE OF THE MOTHERLAND'S NUCLEAR SHIELD IS BEING DECIDED HIGHHANDEDLY ANOTHER BIG PROBLEM IS UKRAINE THOUGH PRESIDENT LEONID KRAVCHUK AND OTHER UKRAINIAN OFFICIALS HAVE PLEDGED TO MAKE THEIR NEWLY INDEPENDENT COUNTRY NONNUCLEAR UKRAINE IS NOW THE THIRDLARGEST NUCLEAR POWER IN THE WORLD BECAUSE OF THE WEAPONS IT INHERITED FROM THE BREAKUP OF THE SOVIET UNION 176 NUCLEAR MISSILES AND 40 NUCLEARARMED BOMBERS UKRAINE HAS BEEN PLAYING A TOUGHER GAME THAN BELARUS AND KAZAKHSTAN THE OTHER FORMER SOVIET REPUBLICS THAT ALSO HAVE A NUCLEAR ARSENAL BUT HAVE AGREED TO TURN THE WEAPONS OVER TO RUSSIA DESPITE OFFICIAL STATEMENTS UKRAINE HASN'T TAKEN ANY CONCRETE STEPS TOWARD BECOMING NONNUCLEAR IT HASN'T FOR EXAMPLE RATIFIED THE START I AGREEMENT WORD HAS BEEN SPREAD UNOFFICIALLY THAT UKRAINE MAY WANT TO KEEP ITS NUCLEAR WEAPONS TO AVOID BEING UNDER RUSSIA'S THUMB WASHINGTON HAS OFFERED 175 MILLION TO UKRAINE TO DISMANTLE THE WEAPONS ACCORDING TO A SENIOR ADMINISTRATION OFFICIAL THE US HAS ALSO DRAFTED ASSURANCES FOR UKRAINE IF IT GIVES UP THE NUCLEAR WEAPONS THE OFFICIAL WOULDN'T SPECIFY WHAT THE ASSURANCES ARE THOUGH DISARMAMENT WILL BE LESS COSTLY THAN CONTINUING TO MAINTAIN THEIR PRESENT NUCLEAR ARSENSALS THE PRICE TAG FOR BOTH SIDES WILL BE SUBSTANTIAL NOBODY HAS CALCULATED THE TOTAL COST WHICH WILL VARY DEPENDING ON WHICH TREATY OPTIONS EACH SIDE TAKES FOR EXAMPLE THE US HAS THE CHOICE OF REARMING ITS MULTIPLE WARHEADS AS SINGLE WARHEADS BUT THIS WOULD COST THE US 15 BILLION ACCORDING TO A WESTERN DIPLOMAT IF THE US DECIDES NOT TO REARM AND RUSSIA FOLLOWED IT WOULD SAVE BOTH SIDES CONSIDERABLE AMOUNTS OF MONEY SOME OFFICIALS SAY THE COST OF DESTROYING NUCLEAR CHEMICAL AND BIOLOGICAL WEAPONS IN AN ENVIRONMENTALLY SOUND MANNER COULD EXCEED THE COST OF BUILDING THEM EACH SIDE WILL ACCELERATE THE DISMANTLING OF NUCLEAR WARHEADS DOWN TO 3500 FROM A TOTAL OF 10000 BY THE YEAR 2003 RUSSIA ALONE HAS MORE THAN 40000 TONS OF CHEMICAL WEAPONS TO DESTROY RUSSIAN AND US OFFICIALS HAVE BOTH CHARACTERIZED AS PEANUTS THE 400 MILLION THE US SENATE HAS PROPOSED TO GIVE TO RUSSIA FOR TECHNICAL ASSISTANCE IN DISMANTLING ITS WEAPONS OF MASS DESTRUCTION SAYING THE ACTUAL COST WILL BE MUCH MORE THOUGH MR YELTSIN HAS SAID RUSSIA WILL PICK UP MOST OF THE COST AND ISN'T LOOKING FOR US HANDOUTS IT ISN'T KNOWN HOW HE WILL MUSTER THE FUNDS COMPLETION OF THE START TREATY BEFORE THE END OF MR BUSH'S TERM IS A RELIEF TO MR CLINTON AND HIS ADVISERS WHO OTHERWISE WOULD HAVE HAD TO NAIL DOWN A DEAL IMMEDIATELY UPON TAKING OFFICE GIVEN THE CONFUSION SURROUNDING ANY NEW ADMINISTRATION THAT WOULD HAVE MEANT A DELAY THAT COULD HAVE GIVEN TREATY FOES IN MOSCOW TIME TO KILL THE DEAL THE CLINTON ADMINISTRATION WILL HAVE TO SHEPHERD THE TREATY THROUGH RATIFICATION BY THE SENATE BUT APPROVAL THERE IS ALMOST CERTAIN SEN RICHARD LUGAR OF INDIANA A SENIOR REPUBLICAN ON THE SENATE FOREIGN RELATIONS COMMITTEE PREDICTED ONLY TOKEN OPPOSITION BUT ON NBC NEWS'S MEET THE PRESS SEN LUGAR CAUTIONED THAT SOME SENATORS WILL TRY TO SHORTEN THE PACT'S 10YEAR TIMETABLE FOR COMPLETING THE ARMS CUTBACK SOME LAWMAKERS FEAR THAT MR YELTSIN AND OFFICIALS WHO FAVOR THE DEEP ARMS CUTS COULD BE SWEPT FROM OFFICE BEFORE THE REDUCTIONS ARE MADE 9301040007 930104 YEAREND REVIEW OF MARKETS VALUE' STILL HAS VALUE SAYS THIS QUARTET OF STOCK PICKERS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL HOLIDAY TRADITIONS CAN SOMETIMES BE LUCRATIVE EACH YEAR IN THIS SPACE A HANDFUL OF STOCK PICKERS OFFER THEIR FAVORITE STOCKS FOR THE NEW YEAR THE STOCKS RECOMMENDED LAST YEAR DID PARTICULARLY WELL UP AN AVERAGE OF 378 THROUGH DEC 30 INCLUDING DIVIDENDS MR MORGAN DOESN'T EXPECT MUCH FROM THE OVERALL STOCK MARKET THIS YEAR BUT THINKS INVESTORS CAN MAKE GOOD MONEY BY PLAYING THE RIGHT THEMES FOR EXAMPLE HE SAYS THE TREND TO VALUE BUYING WON'T STOP JUST BECAUSE THE RECESSION ENDED JUST AS PEOPLE KEPT PUMPING THEIR OWN GAS AFTER THE ENERGY CRISIS OF 1973 FADED THEY WILL KEEP LOOKING FOR BARGAINS TWO OF MR MORGAN'S SELECTIONS ARE REPEATS RUDDICK CORP AND INTERMET CORP MR MORGAN THINKS RUDDICK'S HARRISTEETER SUPERMARKET CHAIN OFFERS GOOD VALUE TO CONSUMERS AND IS ALONE WORTH ALMOST THE WHOLE PRICE OF RUDDICK'S STOCK RUDDICK ALSO OWNS A GRAPHICS COMPANY AND AN INDUSTRIAL THREAD COMPANY INTERMET A LARGE FOUNDRY STANDS TO BENEFIT FROM AUTO MAKERS' PLANS TO GET MORE PARTS FROM OUTSIDE VENDORS PCA INTERNATIONAL INC WHICH OPERATES PHOTO STUDIOS IN KMART STORES SHOULD BENEFIT FROM THE VALUEBUYING TREND AND FROM A MINOR BABY BOOM MR MORGAN SAYS LADD FURNITURE INC IS AN EARNINGS MOMENTUM PLAY MR MORGAN EXPECTS ITS PERSHARE PROFIT TO SWELL FROM ABOUT 23 CENTS A SHARE IN 1992 TO 120 OR MORE BY 1994 I DON'T NORMALLY LIKE TO GO BOTTOM FISHING SAYS MR MORGAN BUT HE CAN'T RESIST THE DEPRESSED SHARES OF HEALTH IMAGES INC THE MAGNETIC RESONANCE IMAGING INDUSTRY IS IN A STATE OF OVERCAPACITY BUT MR MORGAN THINKS CONGRESS MIGHT WELL OUTLAW DOCTOROWNED MRI CENTERS ON CONFLICTOFINTEREST GROUNDS THAT WOULD SWEEP AWAY MUCH OF HEALTH IMAGES' COMPETITION THE SECOND PANELIST ISN'T A PERSON AT ALL IT'S THE MACROWORLD COMPUTER PROGRAM PRODUCED BY MACROWORLD RESEARCH CORP IN WINSTONSALEM NC THE SYSTEM'S CHOICES LAST YEAR PROVIDED A 476 RETURN THE DARN THING WORKS SAYS DOUGLAS GRAHAM MACROWORLD'S PRESIDENT AFTER EIGHT YEARS WE'RE STILL AMAZED FOR 1993 MACROWORLD PICKS FIVE STOCKS THAT IT JUDGES HAVE AT LEAST A 70 CHANCE OF ADVANCING THIS YEAR HASBRO INC FOOD LION INC AMERICAN BRANDS INC STUDENT LOAN MARKETING ASSOCIATION AND GERBER PRODUCTS CO THE STOCKS ARE LISTED IN ORDER OF THE GAINS THE PROGRAM EXPECTS FROM MORE THAN 100 FOR TOY MAKER HASBRO TO A LITTLE OVER 20 FOR BABYFOOD PRODUCER GERBER MR GRAHAM SAYS THE PROGRAM OFTEN SELECTS STOCKS THAT ARE DEPRESSED BY SOME TEMPORARY PROBLEM FOR EXAMPLE STOCK IN GROCERY CHAIN FOOD LION FELL BECAUSE A TELEVISION PROGRAM CHARGED THAT THE COMPANY SOLD SPOILED MEAT AND THE US GOVERNMENT ALLEGED THAT FOOD LION VIOLATED CHILD LABOR LAWS MR GRAHAM SAYS THOSE ALLEGATIONS WILL PROVE TO BE JUST A TRANSIENT BLIP THE MACROWORLD PROGRAM LOOKS FOR STATISTICAL CORRELATIONS ANYWHERE IT CAN FIND THEM LAST YEAR IT RECOMMENDED A COMPUTER STOCK PARTLY ON THE BASIS OF CORN PRICES THIS YEAR THE MACROWORLD PROGRAM SELECTED AMERICAN BRANDS PARTLY BECAUSE ADVERTISING STOCKS HAD PERKED UP WHAT'S THE CONNECTION THE PROGRAM DOESN'T KNOW OR CARE DAVID HENWOOD RESEARCH DIRECTOR AT RAYMOND JAMES & ASSOCIATES IN ST PETERSBURG FLA USES QUITE A DIFFERENT METHOD HE IS LOOKING FOR STOCKS WITH NEW PRODUCTS IMPROVING BUSINESS TRENDS AND A LARGE PROBABILITY OF BIG EARNINGS GAINS IN 1993 IMCO RECYLING INC IS A GOOD EXAMPLE ITS ALUMINUM RECYCLING PLANT IN OHIO IS JUST STARTING UP BUT ALREADY HAS ENOUGH BUSINESS BOOKED TO KEEP IT BUSY NURSING HOMES MR HENWOOD BELIEVES WILL PROVIDE AN INCREASING AMOUNT OF MEDICAL CARE AS COSTCONSCIOUS INSURERS AND GOVERNMENT BODIES TRY TO KEEP PEOPLE OUT OF HOSPITALS THAT BODES WELL HE THINKS FOR LIVING CENTERS OF AMERICA INC PROMUS COS IS HIS FAVORITE GAMING STOCK BECAUSE IT IS MAKING GREAT STRIDES BOTH IN RIVERBOAT GAMING AND INDIAN RESERVATION GAMING LIKE MR MORGAN HE'S A FAN OF LADD FURNITURE WHICH HE SAYS HAS CLOSED NINE PLANTS IN THE PAST THREE YEARS AND HAS IMPROVED ITS BALANCE SHEET THERMO INSTRUMENT SYSTEMS INC IS A MAJOR BENEFICIARY OF THE REVISED CLEAN AIR ACT AND OF THE COMING CLINTONGORE ADMINISTRATION'S STANCE ON POLLUTION CONTROL MR HENWOOD SAYS THOUGH THE MOST EXPENSIVE OF HIS FIVE PICKS RECENTLY AT 23 TIMES ESTIMATED 1993 EARNINGS IT IS A VERY STRONG VERY SOLID LONGTERM GROWTH VEHICLE HE SAYS ROUNDING OUT THE PANEL IS GEORGE VANDERHEIDEN MANAGER OF FIDELITY DESTINY FUND IN BOSTON HE IS KEEN ON HARMON INTERNATIONAL INDUSTRIES A MAKER OF AUDIO SPEAKERS ITS LINES FOR HOME USE AND FOR PROFESSIONALS ARE DOING FINE MR VANDERHEIDEN SAYS BUT THE KEY IS IN JBL BRAND SPEAKERS FOR CARS THE AUTO AREA LOST 4 MILLION IN THE JUNE 1992 FISCAL YEAR HE SAYS THEY'RE SEEING A BIG TURNAROUND THERE HARMON IS GETTING ITS SPEAKERS IN MORE CAR LINES SUCH AS CHRYSLER LH CARS AND IN 1994 THE JEEP CHEROKEE IN ADDITION MR VANDERHEIDEN THINKS BUYERS ARE GETTING MORE PRONE TO SPRING FOR A FANCY SPEAKER SYSTEM ANOTHER OF MR VANDERHEIDEN'S FAVORITES IS MERISEL INC A DISTRIBUTOR OF PERSONAL COMPUTERS SOFTWARE AND RELATED EQUIPMENT THE PROLIFERATION OF BRANDS AND THE INCREASING NUMBER OF COMPUTERSUPPLY STORES MEANS MORE BUSINESS FOR MIDDLEMEN LIKE MERISEL HE FIGURES MR VANDERHEIDEN ALSO LIKES VARITY CORP FOR ITS ANTILOCK BRAKING SYSTEMS FOR CARS CONSUMER ELECTRONICS CHAIN GOOD GUYS INC AS A PLAY ON A POTENTIAL REVIVAL OF THE CALIFORNIA ECONOMY AND HOSPITAL CORP OF AMERICA BECAUSE IT SEEMS EXCESSIVELY OUT OF FAVOR WITH INVESTORS 9301040006 930104 REVIEW & OUTLOOK EDITORIAL ASIDES GRAIN OF SALT PRESIDENT BUSH IS GOING OUT IN STYLE PARDONING IRANCONTRA DEFENDANTS FOLLOWING TROOPS TO SOMALIA AND HOLDING A SUMMIT MEETING WITH BORIS YELTSIN TO SIGN A STRATEGIC ARMS LIMITATION TREATY AS LONGTIME SKEPTICS ABOUT SALT WE HOPE THIS AGREEMENT'S THE LAST ONE NO TREATY BETWEEN ADVERSARIES WILL REALLY LIMIT ARMS NOW THAT THE US AND THE YELTSIN GOVERNMENT ARE FRIENDS NO TREATY'S REALLY NECESSARY INDEED THE MAIN RESULT OF THE NEW ONE SEEMS TO BE KEEPING A LOT OF MISSILES AROUND UNTIL 2003 COME THEN WE HOPE MR YELTSIN'S STILL IN CHARGE 9301040005 930104 FISHER SCIENTIFIC ACQUISITION HAMPTON NH FISHER SCIENTIFIC INTERNATIONAL INC SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF THE HAMILTON DIVISION OF CLOSELY HELD HAMILTON INDUSTRIES INC FOR 90 MILLION THE HAMILTON DIVISION MAKES LABORATORY FURNITURE AND WILL CONTINUE TO OPERATE UNDER ITS PRESENT MANAGEMENT FISHER SAID THE MAKER OF SCIENTIFIC INSTRUMENTS AND EQUIPMENT SAID IT ALSO COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF A MAJORITY INTEREST IN KUHN & BAYER OF NIDDERAU GERMANY KUHN & BAYER IS A SUPPLIER OF SCIENTIFIC PRODUCTS TERMS FOR THAT TRANSACTION WEREN'T DISCLOSED 9301040004 930104 SYNOVUS FINANCIAL CORP COLUMBUS GA SYNOVUS FINANCIAL CORP SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED MERGER WITH FIRST COMMERCIAL BANCSHARES INC OF JASPER ALA THE AGREEMENT CALLS FOR FIRST COMMERCIAL SHAREHOLDERS TO GET 15 SHARES OF SYNOVUS STOCK FOR EACH SHARE OF FIRST COMMERCIAL STOCK IN A TAXFREE EXCHANGE VALUED AT ABOUT 160 MILLION SYNOVUS IS A BANKING AND FINANCIALSERVICES COMPANY AND FIRST COMMERCIAL IS A BANK HOLDING COMPANY 9301040003 930104 BUSINESS BRIEF MIDLANTIC CORP COMPANY COMPLETES SALE OF TWO BANKS TO ONBANCORP MIDLANTIC CORP SAID IT COMPLETED THE SALE OF MERCHANTS NATIONAL BANK & TRUST CO AND UNION NATIONAL BANK TO ONBANCORP INC OF SYRACUSE NY FOR 93 MILLION GARRY J SCHEURING MIDLANTIC CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE SALES AND OTHER STEPS INCLUDING A 113 MILLION PRIVATE PLACEMENT OF COMMON STOCK IN AUGUST HAVE INCREASED MIDLANTIC'S CAPITAL RATIOS TO LEVELS SIGNIFICANTLY ABOVE MINIMUM REGULATORY REQUIREMENTS FOR YEAR END AT SEPT 30 MERCHANTS NATIONAL BASED IN SYRACUSE NY HAD ASSETS OF 772 MILLION AND UNION NATIONAL BANK ALBANY HAD ASSETS OF 238 MILLION MIDLANTIC BASED IN EDISON NJ OPERATES 334 BANKING OFFICES IN NEW JERSEY AND SOUTHEASTERN PENNSYLVANIA AND HAS 14 BILLION IN ASSETS ONBANCORP HAS 36 BILLION IN ASSETS INCLUDING THE PURCHASE AND OPERATES IN 69 LOCATIONS IN NEW YORK AND NORTHEASTERN PENNSYLVANIA 9301040002 930104 MEDICINE DRUG CONCERNS PROMISE TO CURB PRICE INCREASES BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL DRUGINDUSTRY LEADERS SCRAMBLING TO HEAD OFF PRICE CONTROLS ARE PROMISING CLINTON ADMINISTRATION TRANSITION OFFICIALS THEY WILL SHARPLY REDUCE ANNUAL PRICE INCREASES A MOVE THAT WOULD SLASH INDUSTRY REVENUE BY HUNDREDS OF MILLIONS OF DOLLARS A YEAR MOREOVER DRUG MAKERS SAY THEY WOULDN'T FIGHT THE NEW ADMINISTRATION IF IT SOUGHT LEGISLATION TO REIMBURSE THE COST OF PRESCRIPTION MEDICINES TO ELDERLY PEOPLE COVERED BY MEDICARE THE INDUSTRY HAS LONG RESISTED MEDICARE COVERAGE OF PRESCRIPTION DRUGS FOR FEAR THAT IT WOULD LEAD INEVITABLY TO TOUGH PRICE CONTROLS SEVERAL MAJOR DRUG MAKERS INCLUDING GLAXO INC AND MERCK & CO SAY THEY MIGHT ACCEPT SOME LIMITED FORM OF PRICE REGULATION ON PRESCRIPTIONS PAID BY MEDICARE BUT THE EXACT NATURE OF THE CONTROLS IS A POINT OF SUCH FIERCE DEBATE AMONG DRUG COMPANY EXECUTIVES THAT IT MAY SCUTTLE THE DEAL SEVERAL INDUSTRY EXECUTIVES SAY IN RECENT WEEKS REPRESENTATIVES FROM THE INDUSTRY'S TRADE ASSOCIATION AND FROM INDIVIDUAL COMPANIES HAVE INITIATED DISCUSSIONS WITH OFFICIALS OF PRESIDENTELECT CLINTON'S TRANSITION TEAM IN AN EFFORT TO NEGOTIATE AN UNDERSTANDING ON ANY NEW HEALTHCARE LAWS MR CLINTON HAS PROMISED TO OVERHAUL THE US HEALTHCARE DELIVERY SYSTEM TO EXPAND ACCESS TO THE UNINSURED AND ATTACK SPIRALING COSTS IN PARTICULAR MR CLINTON HAS TARGETED DRUG COMPANIES FOR THE HIGH COST OF THEIR PRODUCTS ALTHOUGH COMPANY EXECUTIVES AND TRANSITION OFFICIALS SAY TALKS HAVEN'T PRODUCED DEFINITIVE AGREEMENTS BOTH SIDES SAY DRUG COMPANIES ARE PLEDGING TO LOWER AVERAGE ANNUAL PRICE INCREASES OF THEIR DRUGS TO BETWEEN 3 AND 4 IN 1993 KEEPING THE PRICE RISES IN LINE WITH CONSUMER PRICE INFLATION BETWEEN 1982 AND 1991 DRUG PRICES ROSE AN AVERAGE OF TWO TO THREE TIMES THE RATE OF INFLATION MOREOVER COMPANY OFFICIALS SAY THEY WOULD BE WILLING TO PRODUCE PERIODIC AUDITS TO THE NEW GOVERNMENT AS PROOF THEY ARE KEEPING THEIR PROMISE THE CLINTON PEOPLE CERTAINLY HAVE GOTTEN THE INDUSTRY'S ATTENTION SAYS CHARLES SANDERS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE US UNIT OF THE GIANT BRITISH DRUG MAKER GLAXO HOLDINGS PLC INDEED MANY DRUG MAKERS SEE A VOLUNTARY PLEDGE ON PRICES AS A SIGNIFICANT CONCESSION IT'S A MAJOR STEP ON THE PART OF INDUSTRY TO HOLD PRICE INCREASES TO THE RATE OF INFLATION SAYS JOHN R STAFFORD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AMERICAN HOME PRODUCTS CORP NEW YORK AS A RESULT OF THREATENED PRICE CONTROLS FROM SEVERAL BILLS PROPOSED AND DEFEATED IN CONGRESS IN 1992 AMERICAN HOME AND OTHER DRUG COMPANIES ALREADY PUT THE BRAKES ON PHARMACEUTICAL INFLATION MR STAFFORD SAYS FOR THE FIRST 10 MONTHS OF 1992 HIS COMPANY RAISED PRICES ON AVERAGE ABOUT 3 DOWN FROM 58 IN 1991 MR STAFFORD AND OTHER COMPANY EXECUTIVES SAY THE INDUSTRY IS WARY OF MAKING A COLLECTIVE PLEDGE ABOUT PRICES FOR FEAR OF VIOLATING FEDERAL ANTITRUST RULES BUT THEY SAY IF ASKED THE COMPANIES MIGHT PROFFER PROMISES INDIVIDUALLY WE WELCOME INITIATIVES FROM SEVERAL DRUG COMPANIES TO WORK WITH US IN EXPANDING ACCESS AND RESTRICTING COSTS OF PRESCRIPTION DRUGS SAYS JUDITH FEDER DIRECTOR OF THE NEW ADMINISTRATION'S HEALTHCARE TRANSITION TEAM WE ARE CONCERNED AS TO HOW WE CAN BE CERTAIN THESE OBJECTIVES WILL BE ACHIEVED SOME COMPANY LOBBYISTS SUGGEST THE DRUG MAKERS TAKE WHAT FOR THEM IS AN UNUSUAL STEP PUBLICLY RELEASING MONTHLY OR QUARTERLY REPORTS DOCUMENTING PRODUCT PRICE INCREASES THE TRANSITION TEAM SAYS IT WILL CONSIDER SUCH OFFERS SECURITIES ANALYSTS WHO FOLLOW THE DRUG INDUSTRY SAY HOLDING PRICE INCREASES TO THE RATE OF CONSUMER INFLATION IS IN ITSELF NOTEWORTHY GIVEN THE FACT THAT SOME COMPANY'S PROFIT GROWTH HAS DEPENDED HEAVILY ON RISING PRICES CHRISTINA HEUER A VETERAN ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO SAYS SMALLER PRICE RISES WILL REDUCE DRUGINDUSTRY PROFIT GROWTH TO A 1011 RANGE IN 1993 DOWN FROM 17 IN 1991 THE MODERATING RATE OF PRICE INCREASES SHOWS YOU THAT A VERY REAL THREAT OF REGULATION MAY BE MORE POWERFUL THAN ANY LAW YOU COULD PASS SAYS UWE REINHARDT A PROFESSOR OF ECONOMICS SPECIALIZING IN HEALTH ISSUES AT PRINCETON UNIVERSITY THE DRUG COMPANIES FARED VERY WELL DURING THE '80S AND NOW THEY COULD FACE SOME VERY TOUGH RESTRICTIVE POLICIES BUT TRANSITION OFFICIALS SAY A PRICE PLEDGE MAY NOT BE ENOUGH THE TRANSITION TEAM SAYS IT HOPES TO COBBLE A COMPREHENSIVE HEALTHCARE REFORM PLAN THAT THE PRESIDENTELECT COULD PRESENT TO CONGRESS DURING THE ADMINISTRATION'S FIRST 100 DAYS IN OFFICE KEY TO THIS IS SOMETHING CALLED MANAGED COMPETITION WHICH WOULD ENCOURAGE AMERICANS TO SELECT FROM COMPETING HEALTH INSURANCE PLANS THAT IN TURN WOULD NEGOTIATE PRICE DISCOUNTS FROM DOCTORS AND HOSPITALS AND PERHAPS DRUG COMPANIES THE INDUSTRY'S TRADE GROUP SAYS PRESCRIPTION DRUGS SHOULD BE INCLUDED AS A STANDARD BENEFIT IN THESE NEWLY DEVELOPED INSURANCE PLANS A MOVE THAT WOULD EXPAND DRUG COVERAGE TO MILLIONS OF WORKING AMERICANS INDUSTRY EXECUTIVES SAY THEY EXPECT THESE COMPETING PLANS WOULD EXACT SHARP PRICE DISCOUNTS FROM DRUG MAKERS IN ORDER TO BE INCLUDED IN THE BENEFIT TRANSITION OFFICIALS HOWEVER ALSO WANT TO PROVIDE A DRUG BENEFIT TO MILLIONS OF ELDERLY PEOPLE WHO MUST PAY FROM THEIR OWN POCKETS FOR DRUGS SINCE MEDICARE DOESN'T COVER THEM WE UNDERSTAND THE ELDERLY ON FIXED INCOMES ARE HURT BY RISING PRICES SAYS ONE INDUSTRY OFFICIAL BUT OUR CONCERN IS WHO WILL PAY THE COST OF THE BILL WE ARE ADAMANTLY OPPOSED TO FORCING THE DRUG MAKERS TO CARRY THE LOAD BY DISCOUNTING PRICES DRUG COMPANIES SAY THEY ARE SMARTING FROM A LAW PASSED IN 1991 THAT REQUIRES DRUG MAKERS TO DISCOUNT DRUGS USED BY STATE MEDICAID PLANS WHICH COVER HEALTH COSTS TO THE POOR THE DRUG INDUSTRY SAYS THESE REBATES MAY COST THE INDUSTRY 64 BILLION BETWEEN 1991 AND 1995 MEDICAID REPRESENTS ABOUT 10 TO 15 OF OUR MARKET SAYS BOB ALLNUT EXECUTIVE VICE PRESIDENT OF THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION A MEDICARE PROPOSAL WOULD COVER 30 TO 40 OF OUR MARKET A DISCOUNT TO MEDICARE LIKE THE ONE TO MEDICAID WOULD SIGNIFICANTLY HURT THE INDUSTRY'S ABILITY TO CONDUCT RESEARCH ON NEW AND PROMISING MEDICINES HE SAYS IN 1988 CONGRESS EXTENDED MEDICARE COVERAGE TO PRESCRIPTION DRUGS BUT THE BILL WAS REPEALED IN 1989 FOLLOWING A FLOOD OF COMPLAINTS OVER HIGHER MONTHLY PREMIUMS THAT WERE CHARGED TO RECIPIENTS TO PAY FOR THE MEDICARE COVERAGE INDEED FEW EXPECT THE CLINTON ADMINISTRATION TO SHELL OUT THE MONEY FOR MEDICARE COVERAGE UNLESS SAVINGS CAN BE FOUND ELSEWHERE NONETHELESS DRUG MAKERS CONCEDE THEY MUST MAKE SOME CONCESSION THE MEDICARE ISSUE HAS TO BE RESOLVED SAYS DR SANDERS THE GLAXO OFFICIAL I'M HOPING AS AN INDUSTRY WE CAN MAKE A CONSTRUCTIVE PROPOSAL IN THIS AREA OTHERWISE IT MAY BE DONE WITHOUT US 9405040016 931027 TEXAS JOURNAL COLLIDER ECON 101 DON'T BUY NOW STILL PAY LATER BY TARA PARKERPOPE SAD ABOUT THE DEMISE OF THE SUPERCONDUCTING SUPERCOLLIDER HERE'S MORE BAD NEWS TEXANS ARE GOING TO BE PAYING FOR THE THING UNTIL THE YEAR 2022 THE STATE IN 1990 AND 1991 ISSUED 500 MILLION IN BONDS TO HELP PAY FOR THE PROJECT EVEN THOUGH THE PROJECT IS GOING AWAY THE DEBT PAYMENTS AREN'T THE ANNUAL BILL WILL BE BETWEEN 37 MILLION TO 41 MILLION AND THE FINAL PRICE TAG WHEN THEY'RE ALL PAID OFF 12 BILLION ACCORDING TO THE TEXAS BOND REVIEW BOARD ONLY 250 MILLION OF THE BONDS WERE ACTUALLY APPROVED BY VOTERS THE REST WERE ISSUED AS LEASE REVENUE BONDS A FINANCING MECHANISM THAT ALLOWED THE STATE TO DO AN END RUN AROUND VOTERS EVEN THOUGH TAX DOLLARS STILL WILL BE USED TO PAY FOR THEM STATE OFFICIALS SAY THE FATE OF THE BONDS IS UNCLEAR ABOUT 130 MILLION OF THE ISSUED BONDS HASN'T BEEN SPENT THE FUNDS MAY BE USED TO PAY FOR SHUTTING DOWN THE PROJECT OR TO PAY DOWN SOME OF THE DEBT THE BONDS WHICH HAVE INTEREST RATES OF 646 TO 708 ALSO COULD BE REFINANCED WHATEVER THE OUTCOME OFFICIALS AREN'T HAPPY ABOUT OWING MILLIONS ON A PROJECT THAT NEVER HAPPENED AND ARE SEEKING FEDERAL REIMBURSEMENT FOR BOND MONEY ALREADY SPENT I WOULD THINK THIS EXPERIENCE DOES NOT BODE WELL FOR FUTURE STATE AND FEDERAL PARTNERSHIPS SAYS THOMAS D WILLIAMS VICE CHAIRMAN OF THE TEXAS NATIONAL RESEARCH LABORATORY COMMISSION I THINK ANY STATE WOULD RIGHTLY THINK LONG AND HARD ABOUT A PARTNERSHIP WITH THE FEDERAL GOVERNMENT AT THIS POINT SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR COLLIDER CONFUSION WSJ MAY 4 1994 9310270048 9312290022 YY93 MM12 YY94 MM05 9404280025 930929 MARKETING & MEDIA MURDOCH WITHDRAWS BID FOR NY POST AS DRIVERS PRESSMEN HONOR GUILD STRIKE BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RUPERT MURDOCH HAS WITHDRAWN HIS BID FOR THE NEW YORK POST AND THE TROUBLED TABLOID FACES EXTINCTION ONCE AGAIN MR MURDOCH'S NEWS CORP VOWED MONDAY TO CANCEL ITS PLANNED PURCHASE OF THE POST IF THE STRIKING NEWSPAPER GUILD DISRUPTED PUBLICATION PRESSMEN AND DRIVERS REFUSED TO CROSS THE GUILD'S PICKET LINE MONDAY NIGHT THUS PREVENTING PUBLICATION OF TUESDAY'S PAPER YESTERDAY MR MURDOCH MADE GOOD ON HIS PROMISE ALERTING BANKRUPTCY COURT AND THE CREDITORS' COMMITTEE FOR THE NEW YORK POST THAT THE 25 MILLION DEAL IS OFF NEWS CORP IS ADAMANT THAT THEY ARE WALKING AWAY FROM THE DEAL SAID A SPOKESMAN FOR THE COMPANY NEWS CORP WILL BE OUT OF THE BUILDING BY MIDNIGHT THURSDAY WHEN ITS CURRENT MANAGEMENT AGREEMENT TO OPERATE THE POST EXPIRES THE DEAL WAS SCHEDULED TO CLOSE FRIDAY HAVING BEEN APPROVED BY BANKRUPTCY COURT ALTHOUGH THE CHAIRMAN OF NEWS CORP THREATENED TO SCOTCH THE DEAL IN JULY WHEN THE PAPER CEASED PUBLICATION FOR SEVERAL DAYS TALKS LATER RESUMED WITH THE UNIONS AND THE PAPER REAPPEARED ON NEWSTANDS BUT PUBLISHING ANALYSTS SEE DIMINISHING HOPES FOR THE POST THIS TIME THIS LOOKS LIKE THE FINAL COUNTDOWN UNLESS SOMEBODY BLINKS AND I THINK THE BLINK WILL HAVE TO COME FROM THE UNIONS SAID JOHN REIDY A MEDIA ANALYST FOR SMITH BARNEY SHEARSON I DON'T BELIEVE THIS PROPERTY HAS ANY STRATEGIC RELEVANCE TO NEWS CORP AND I DON'T BELIEVE RUPERT MURDOCH IS WILLING TO BUY THE PAPER UNLESS ITS LOSSES CAN BE SERIOUSLY LIMITED THERE ARE SOME PARTIES STILL DETERMINED TO SEE THIS DEAL GO THROUGH INCLUDING NEW YORK GOVERNOR MARIO CUOMO WHO HAS INTERVENED PREVIOUSLY TO FIND POTENTIAL BIDDERS FOR THE PAPER THE GOVERNOR'S OFFICE SAID HE TALKED TO MR MURDOCH AND TO UNION REPRESENTATIVES AND IS TRYING TO GET BOTH PARTIES BACK TO THE BARGAINING TABLE IN ADDITION AN ATTORNEY FOR THE PAPER'S CREDITORS THREATENED TO SUE MR MURDOCH TO ENFORCE THE PURCHASE AGREEMENT WE THINK THAT NEWS CORP HAS A BINDING AGREEMENT TO BUY THE NEWSPAPER AND WE INTEND TO HOLD THEM TO IT SAID HOWARD SEIFE AN ATTORNEY WITH WINSTON & STRAWN WHO IS REPRESENTING THE CREDITORS' COMMITTEE HE ADDED ABSENT COURT INTERVENTION THE OUTLOOK FOR THE DEAL ISN'T GOOD BUT WE'RE DOING EVERYTHING WE CAN TO GET THE UNIONS AND MURDOCH BACK TOGETHER A SPOKESMAN FOR NEWS CORP SAID THE COMPANY BELIEVES IT RECEIVED PERMISSION TO BUY THE PAPER BUT ISN'T UNDER ANY OBLIGATION TO DO SO REPRESENTATIVES FROM ALL NINE UNIONS WITH MEMBERS AT THE POST MET YESTERDAY TO ASSESS THE SITUATION BUT DIDN'T MAKE ANY ANNOUNCEMENTS BY EARLY EVENING THE STRIKE BEGAN AFTER THE GUILD REFUSED TO ACCEDE TO A NEWS CORP DEMAND FOR A FOUR MONTH PERIOD DURING WHICH MANAGEMENT COULD FREELY FIRE POST EMPLOYEES A SPOKESMAN FOR THE STRIKING NEWSPAPER GUILD WHICH REPRESENTS NEARLY 300 OF THE POST'S 700 EMPLOYEES SAID MR MURDOCH DOES HAVE A REPUTATION FOR LIVING UP TO HIS THREATS BUT WE UNDERSTAND THAT HE PLANNED TO CUT UP TO 200 OF OUR MEMBERS' JOBS AND OUR MEMBERS FELT THEY COULDN'T AGREE TO HIS TERMS WE KNOW THE PAPER NEEDS TO CUT LOSSES BUT WE AREN'T WILLING TO SLIT OUR OWN THROATS ALTHOUGH THE POST'S OUTLOOK IS INCREASINGLY DIM SOME EDITORS AND REPORTERS THERE SAY THEY CAN'T BELIEVE MR MURDOCH WHO OWNED THE POST FROM 1976 UNTIL 1988 HAS REALLY GIVEN UP PLANS TO RECAPTURE IT I THINK RUPERT MURDOCH HAS INK IN HIS VEINS AND THAT BILLIONS OF DOLLARS DON'T GIVE HIM THE RUSH OF BIG HEADLINES IN A MAJOR CITY PAPER LIKE THE POST SAID RANDSDELL PIERSON AN INVESTIGATIVE REPORTER FOR THE POST I CAN'T BELIEVE HE WOULD COME THIS FAR AND THEN WALK AWAY NONETHELESS IF MR MURDOCH DOESN'T CHANGE HIS MIND MR PIERSON CAN'T IMAGINE WHO ELSE WOULD WANT THE UNPROFITABLE TABLOID MURDOCH HAS DEEP POCKETS AND A LOVE OF THE BUSINESS SAID MR PIERSON MY FEELING IS THAT IT'S DOUBTFUL ANY OTHER OWNER WOULD KEEP THE PAPER ALIVE 9404260157 931007 TCI REPORTED IN TALKS TO BUY LIBERTY MEDIA REPURCHASE OF FIRM IT SHED WOULD REINFORCE QVC IN BATTLE FOR PARAMOUNT BY JOHNNIE L ROBERTS AND LAURA LANDRO STAFF REPORTERS OF THE WALL STREET JOURNAL TELECOMMUNICATIONS INC IS IN DISCUSSIONS TO REACQUIRE LIBERTY MEDIA CORP THE CABLE AND PROGRAMMING CONCERN IT SPUN OFF TO SHAREHOLDERS TWO AND A HALF YEARS AGO ACCORDING TO PEOPLE FAMILIAR WITH THE PLAN SUCH A DEAL WOULD MOVE TCI TO THE FOREGROUND OF THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC LIBERTY IS A CONTROLLING SHAREHOLDER OF QVC NETWORK INC WHICH HAS PROPOSED TO ACQUIRE PARAMOUNT IN A TRANSACTION VALUED AT 95 BILLION PARAMOUNT HAS ALREADY AGREED TO BE ACQUIRED BY VIACOM INC IN A TRANSACTION VALUED AT 74 BILLION LIBERTY'S SHARES ROSE ALMOST 6 YESTERDAY AS TRADERS BEGAN TO SPECULATE THAT SUCH A TRANSACTION MIGHT BE IN THE OFFING MOREOVER FURMAN SELZ INC AN INVESTMENT BANKING FIRM SPECIALIZING IN MEDIA AND ENTERTAINMENT COMPANIES RECOMMENDED THAT CLIENTS PURCHASE THE STOCK OF LIBERTY DESCRIBING THE COMPANY AS A RECONSOLIDATION POSSIBILITY LIBERTY MEDIA CLASS A SHARES GAINED 150 OR 59 TO CLOSE AT 27 A SHARE IN NATIONAL OVERTHECOUNTER TRADING WHILE LIBERTY CLASS B SHARES ROSE 175 TO 2675 MEANWHILE TCI CLASS A SHARES CLOSED AT 26625 EACH DOWN 125 CENTS AND TCI CLASS B SHARES FELL 25 CENTS TO 2650 OFFICIALS OF LIBERTY COULDN'T BE REACHED FOR COMMENT AND A SPOKESMAN FOR TCI DECLINED COMMENT BUT THE PEOPLE FAMILIAR WITH THE TALKS SAID THE DISCUSSIONS BETWEEN TCI AND LIBERTY WEREN'T PROMPTED BY THE PARAMOUNT TAKEOVER HOWEVER ONE OF THE PERSONS SAID THAT IF TCI ACQUIRED LIBERTY AND GOT DIRECTLY INVOLVED IN QVC'S BID THE BID WOULD BE STRENGTHENED DRAMATICALLY TCI HAS A STRONGER BALANCE SHEET AND IS MUCH LARGER THAN LIBERTY WHICH IS ALREADY BACKING THE QVC BID WITH A 500 MILLION INVESTMENT TELECOMMUNICATIONS SPUN OFF LIBERTY IN 1991 IN PART TO DEFUSE CRITICISM IN WASHINGTON THAT TCI WAS TOO POWERFUL WITH VAST HOLDINGS OF CABLE SYSTEMS AND CABLE PROGRAMMING AMONG THE ASSETS THAT LIBERTY INHERITED WERE STAKES IN BLACK ENTERTAINMENT TELEVISION THE FAMILY CHANNEL AND REGIONAL SPORTS NETWORKS AS WELL AS THE QVC STAKE TCI RETAINED MOST OF ITS CABLE SYSTEMS AND SOME PROGRAMMING INTERESTS INCLUDING A 23 STAKE IN TURNER BROADCASTING SYSTEM INC DESPITE THE SPINOFF THE TWO COMPANIES MAINTAINED CLOSE TIES TCI CHIEF EXECUTIVE JOHN MALONE BECAME LIBERTY'S CHAIRMAN AND CONTROLLING SHAREHOLDER TRANSFERRING MOST OF HIS PERSONAL HOLDINGS IN TCI TO LIBERTY BOB MAGNESS TCI'S FOUNDER AND CHAIRMAN ALSO OWNS A 19 VOTING STAKE IN LIBERTY AND TELECOMMUNICATIONS ITSELF OWNS ALMOST 5 OF LIBERTY THE IMPETUS FOR RECOMBINING THE COMPANIES HAS GROWN STRONGER RECENTLY BECAUSE NEW REGULATIONS TO LIMIT VERTICAL INTEGRATION HAVEN'T BEEN AS STRICT AS THE INDUSTRY HAD EXPECTED MOREOVER AS CONSOLIDATION CONTINUES IN THE MEDIA AND ENTERTAINMENT INDUSTRIES TCI NEEDS LIBERTY'S PROGRAMMING ASSETS IF IT IS TO RETAIN ITS POSITION AS ONE OF THE INDUSTRY'S MOST POWERFUL PLAYERS TCI AND LIBERTY'S CONTINUING TIES HAVE BEEN A LIGHTNING ROD IN THE TAKEOVER BATTLE IN A MOVE TO THWART THE QVC OFFER VIACOM FILED A SWEEPING ANTITRUST SUIT IN FEDERAL COURT IN NEW YORK CHARGING TCI LIBERTY AND RELATED COMPANIES WITH MONOPOLIZING THE CABLE BUSINESS TCI AND LIBERTY HAVE CALLED THE SUIT FRIVOLOUS JOHN TINKER AN ANALYST WITH FURMAN SELZ SAID THAT A RECOMBINED TCI AND LIBERTY LIKE VERTICALLY INTEGRATED TIME WARNER INC AND VIACOM MIGHT ATTRACT A HUGE INVESTMENT FROM A REGIONAL BELL PHONE COMPANY IN MAY U S WEST INC PAID 25 BILLION OR 13 TIMES CASH FLOW FOR A 25 STAKE IN TIME WARNER'S ENTERTAINMENT AND CABLE TV OPERATIONS ON MONDAY NYNEX CORP AGREED TO INVEST 12 BILLION IN VIACOM A CASH INFUSION THAT COULD BE USED TO SUPPORT VIACOM'S BID FOR PARAMOUNT IF TCI WANTS A SIMILAR DEAL IT NEEDS TO HAVE MORE PROGRAMMING MR TINKER SAID IN AN INTERVIEW PROGRAMMING IS BECOMING INCREASINGLY VALUABLE AS CABLE SYSTEMS SATELLITE TELEVISION SYSTEMS AND TELEPHONE COMPANIES VIE TO DELIVER A VAST ARRAY OF VIDEO AND DATA SERVICES IN ITS BID FOR PARAMOUNT QVC ALREADY IS HOLDING TALKS WITH SEVERAL REGIONAL BELL PHONE CONCERNS ABOUT INVESTING IN THE DEAL IF LIBERTY WITH A CONTROLLING INTEREST IN QVC IS REQUIRED BY TCI A BELL CONCERN COULD INVEST IN THE RECOMBINED ENTITY FOR LIBERTY A RETURN TO THE TCI FOLD COULD PROVIDE FINANCIAL SUPPORT THAT IT MAY NEED TO EXPAND ITS PROGRAMMING ALREADY LIBERTY'S PROGRAMMING UNITS ARE TAKING ON HEAVY OBLIGATIONS LAST WEEK LIBERTY'S 90OWNED PAYTV SERVICE ENCORE AGREED TO PAY MORE THAN 1 BILLION IN A LONGTERM LICENSING DEAL FOR MOVIES FROM WALT DISNEY CO UNITS INDUSTRY ESTIMATES OF ENCORE'S FUTURE LOSSES RUN AS HIGH AS 100 MILLION A YEAR WRITES MR TINKER ADDING THAT ROLLING ENCORE'S LOSSES OVER TO TCI WOULD MASK ENCORE'S POTENTIAL FINANCIAL PROBLEMS THE RECOMBINATION WOULD HELP ALLEVIATE GROWING MANAGEMENT STRIFE THAT HAS ARISEN BETWEEN THE TWO COMPANIES ALTHOUGH THEY HAVE COMMON OWNERSHIP AND MANAGEMENT THEY OPERATE AS SEPARATE ENTITIES PURSUING SIMILAR STRATEGIES FOR EXAMPLE THE TWO RECENTLY WERE VYING TO BACK A NEW LIFESTYLE CABLE CHANNEL THAT TIMES MIRROR CO IS PROPOSING ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION IT WOULDN'T BE UNPRECEDENTED FOR TCI TO REPURCHASE A COMPANY THAT IT HAS PREVIOUSLY SPUN OFF IN THE MID1980S IT DID JUST THAT WHEN IT SPUN OFF AND THEN BOUGHT BACK WESTMARC WHICH OPERATED CABLETV SYSTEMS 9404260030 931001 A PRAYER FOR A BETTER EDUCATION BY DANIEL MCGROARTY CYNTHIA MILLER IS ABOUT TO JOIN THIS COUNTRY'S GREAT EDUCATION DEBATE SHE ISN'T A TEACHER OR A POLITICIAN OR A DOCTOR OF EDUCATION MS MILLER IS A MILWAUKEE MOTHER INTENT ON HELPING HER SON GET A QUALITY EDUCATION WHAT SHE WANTS FOR HER SON ISN'T A MULTICULTURAL CURRICULUM OUTCOMESBASED EDUCATION OR ANY OF THIS FALL'S LINE OF EDUCATIONAL FADS OR FASHIONS ALL SHE WANTS FOR HER NINEYEAROLD IS A BASIC EDUCATION IN A STABLE ENVIRONMENT TO THAT END SHE AND A GROUP OF MILWAUKEE PARENTS FILED SUIT YESTERDAY TO OPEN UP THE CITY'S INNOVATIVE SCHOOL CHOICE PROGRAM TO INCLUDE SECTARIAN PRIVATE SCHOOLS IF THEY WIN THE CASE THE DECISION WILL HAVE IMPLICATIONS NATIONWIDE FOR THE BURGEONING SCHOOL CHOICE MOVEMENT AND WILL GO A LONG WAY TOWARD LIBERATING THE PUBLIC EDUCATION SYSTEM THAT IS HOLDING BACK SO MANY OF AMERICA'S POOREST CHILDREN MS MILLER HAS HEARD THE ARGUMENTS AGAINST SCHOOL CHOICE FROM MILWAUKEE'S EDUCATION ESTABLISHMENT AND HASN'T BEEN PERSUADED IT'S EASY TO GET DISILLUSIONED WHEN THEY TURN EVERY FRESH PROOF OF EDUCATIONAL FAILURE INTO AN ARGUMENT FOR HIGHER FUNDING FOR THIS MILWAUKEE MOTHER THE ANSWER TO THE SHORTCOMINGS OF HER SON'S PUBLIC SCHOOL IS ALMOST LITERALLY RIGHT DOWN THE STREET AT ST ROSE SCHOOL THAT'S WHERE SHE'S THOUGHT ABOUT SENDING HER SON MARQUELLE THE PROBLEM MS MILLER WORKS AS A HOSPITAL TECHNICIAN HER HUSBAND IS OUT OF WORK ST ROSE'S 1325 TUITION IS BEYOND THEIR REACH IN ANY OTHER AMERICAN CITY BUT MILWAUKEE PARENTS IN THIS POSITION WOULD PROBABLY BE OUT OF LUCK BUT THE MILLERS' HOMETOWN HAPPENS TO BE THE HOTBED OF PRIVATE SCHOOL CHOICE SINCE 1990 MILWAUKEE HAS BEEN THE ONLY CITY IN THE US IN WHICH LOWINCOME PARENTS ARE ELIGIBLE TO USE PUBLIC FUNDS TO ENROLL THEIR CHILDREN IN PRIVATE SCHOOL DESPITE A WITHERING ATTACK FROM THE PUBLIC EDUCATION LOBBY THE MILWAUKEE PARENTAL CHOICE PROGRAM IS WORKING TO POPULAR PARENTAL ACCLAIM NEVERTHELESS TWO REQUIREMENTS HAVE KEPT THE PROGRAM FROM MEETING STUDENT DEMAND THE SCHOOL CHOICE PROGRAM IS LIMITED TO 1 OF THE TOTAL ENROLLMENT IN MILWAUKEE CITY SCHOOLS LAST YEAR 933 STUDENTS WERE ELIGIBLE AND TO BE REGISTERED AS CHOICE SCHOOLS PRIVATE SCHOOLS MUST BE NONSECTARIAN JUST 13 PRIVATE SCHOOLS HAVE MET THAT TEST AS A RESULT MORE CHILDREN HAVE BEEN TURNED AWAY FROM THE CHOICE PROGRAM THAN HAVE BEEN ACCEPTED MEANWHILE THERE ARE MORE THAN 80 PRIVATE SCHOOLS WITHIN CITY LIMITS PROHIBITED FROM PARTICIPATING IN THE PARENTAL CHOICE PROGRAM THE REASON THEY ARE CATHOLIC PROTESTANT MUSLIM OR JEWISH THAT'S THE ISSUE AT THE CENTER OF MS MILLER'S FEDERAL SUIT FILED BY THE WASHINGTON OFFICE OF THE LANDMARK LEGAL FOUNDATION WITH ASSISTANCE FROM THE CENTER FOR EDUCATION REFORM IN WASHINGTON THE SUIT WAS FILED ON BEHALF OF MS MILLER'S SON AND THREE OTHER CHILDREN FROM LOWINCOME MILWAUKEE FAMILIES BY LIMITING MILWAUKEE'S PARENTAL CHOICE PROGRAM TO NONSECTARIAN PRIVATE SCHOOLS LANDMARK ARGUES WISCONSIN HAS UNCONSTITUTIONALLY ABRIDGED PARENTS' FREE EXERCISE OF RELIGION UNDER THE FIRST AMENDMENT THE KEY ACCORDING TO LANDMARK'S GENERAL COUNSEL MARK BREDEMEIER IS THAT SCHOOL CHOICE VOUCHERS ARE AID TO INDIVIDUALS NOT INSTITUTIONS VOUCHERS USED FOR TUITION AT RELIGIOUS SCHOOLS DO NOT BREACH THE ESTABLISHMENT CLAUSE BECAUSE THE GOVERNMENT DOES NOT DICTATE OR DIRECT THE DESTINATION OF THE FUNDS WHERE FAMILIES REDEEM THEIR VOUCHER SAYS MR BREDEMEIER WHETHER AT A PUBLIC PRIVATE OR RELIGIOUS SCHOOL IS UP TO THEM THIS IS THE REASONING THAT SUPPORTS THE GI BILL GRANTS WHICH VETERANS CAN USE TO ENROLL AT THE COLLEGE OF THEIR CHOICE WHETHER IT'S NORTH CAROLINA STATE OR NOTRE DAME YALE OR YESHIVA IT'S THE SAME RATIONALE THAT ENTITLES LOWINCOME PARENTS TO CHILDCARE TAX CREDITS AGAINST THE EXPENSE OF ENROLLING THEIR CHILDREN NOT ONLY IN PUBLIC DAY CARE FACILITIES BUT IN PRIVATE CHURCHBASED CHILD CARE CENTERS BUT WHILE THAT PRINCIPLE IS BACKED BY PRECEDENT FOR CHILDCARE AND COLLEGE GRANTS IT IS CONSPICUOUSLY ABSENT FROM THE TIME CHILDREN ENTER KINDERGARTEN TO THE TIME THEY GRADUATE FROM HIGH SCHOOL MIDDLE AND UPPERCLASS AMERICANS MAY HAVE THE RESOURCES TO PAY PRIVATE SCHOOL TUITION OR BUY HOMES IN NEIGHBORHOODS WITH STRONG PUBLIC SCHOOLS BUT WHERE DOES THAT LEAVE THE CHILDREN OF LOWINCOME FOR MILLIONS OF CHILDREN THAT'S A 13YEAR SENTENCE IN AN EDUCATIONAL SAHARA WHAT HOPE DOES A PELL GRANT WHICH PROVIDES FINANCIAL AID FOR COLLEGE HOLD WHEN 40 OF ALL STUDENTS WHO ENROLL IN BIGCITY HIGH SCHOOLS NEVER MAKE IT TO GRADUATION PARENTS LIKE THE ONES FILING THE SUIT IN MILWAUKEE DON'T HAVE THEIR EYES ON ELITE EXCLUSIVE PREP SCHOOLS A CHOICE VOUCHER AT 2700 WORTH HALF THE AMOUNT PER PUPIL THAT MILWAUKEE'S PUBLIC SCHOOLS SPEND TO ACHIEVE FAILURE WOULDN'T BEGIN TO PAY CHELSEA CLINTON'S TUITION AT SIDWELL FRIENDS BUT IT MORE THAN MEETS THE TUITION AT SCHOOLS LIKE ST ROSE AND EVEN IN THE TOUGHEST PARTS OF TOWN PRIVATE SCHOOLS CAN BE OASES OF OPPORTUNITY LOOK AT MILWAUKEE'S MESSMER HIGH SCHOOL AN INNERCITY SCHOOL THE CATHOLIC DIOCESE CLOSED DOWN 10 YEARS AGO ONLY TO WATCH DISTRAUGHT PARENTS REOPEN IT AS AN INDEPENDENT SCHOOL THAT IS NO LONGER AFFILIATED WITH THE CATHOLIC CHURCH MESSMER HAS BEEN LOCKED OUT OF PARENTAL CHOICE BECAUSE PUBLIC AUTHORITIES FIND IT PERVASIVELY RELIGIOUS IN A CITY WHERE FEWER THAN HALF OF ALL MINORITY STUDENTS GET THEIR HIGH SCHOOL DIPLOMA MESSMER GRADUATES 98 OF ITS STUDENTS A WALL PLAQUE IN MESSMER'S ENTRYWAY LISTS GRADUATING SENIORS AND THE COLLEGES TO WHICH THEY'VE BEEN ACCEPTED LAST YEAR 79 OF THOSE SENIORS WENT ON TO COLLEGE AS A MOVEMENT SCHOOL CHOICE IS GAINING MOMENTUM JUST OVER ONE MONTH FROM NOW CALIFORNIA VOTERS WILL DECIDE WHETHER TO MAKE SCHOOL CHOICE VOUCHERS AVAILABLE TO EVERY STUDENT IN THEIR MEGASTATE PROVOUCHER FORCES ARE UP AGAINST CALIFORNIA'S POWERFUL PUBLIC TEACHERS LOBBY WHICH HAS STOCKPILED 15 MILLION FOR AN ANTIVOUCHER MEDIA BLITZ IF CHOICE FAILS IN CALIFORNIA CRITICS WILL CLAIM THEY HAVE SLAIN THE DRAGON EVEN IF CHOICE WINS THERE COUNT ON PUBLIC EDUCATION AUTHORITIES TO FILE SUIT TO STOP IT EITHER WAY THE PROSPECT OF SCHOOL CHOICE MAY BE DECIDED NOT BY MILLIONS OF VOTERS IN CALIFORNIA BUT BY FOUR PARENTS IN MILWAUKEE IF THE MILWAUKEE PARENTS WIN THEIR CASE THE REVERBERATIONS COULD SHAKE THE PUBLIC SCHOOL MONOPOLY TO ITS CORE AND CRACK OPEN PRIVATE SCHOOL CHOICE TO MILLIONS OF FAMILIES ACROSS THE COUNTRY MS MILLER HASN'T GIVEN ANY THOUGHT TO APPEARING IN THE CONSTITUTIONAL LAW TEXTBOOKS SHE'S JUST THINKING ABOUT MARQUELLE AND AT BOTTOM THAT'S WHAT MILLER ET AL V BENSON AND THE WISCONSIN DEPARTMENT OF PUBLIC INSTRUCTION IS ALL ABOUT PARENTS WHO WANT A CHOICE AND CHILDREN WHO DESERVE A CHANCE MR MCGROARTY DEPUTY DIRECTOR OF WHITE HOUSE SPEECHWRITING FOR PRESIDENT BUSH IS A FELLOW AT THE INSTITUTE FOR CONTEMPORARY STUDIES IN ARLINGTON VA SEE RELATED LETTER LETTERS TO THE EDITOR WHY SECTARIAN' IS AN INSULT WSJ OCT 26 1993 SEE RELATED LETTER LETTERS TO THE EDITOR THE GI BILL WAS NEVER A GRANT' WSJ OCT 29 1993 9310010070 9310260147 9310290123 9311180075 YY93 MM10 YY93 MM11 YY94 MM04 9404260181 930730 BUSINESS & RACE BY LEON E WYNTER CONFLICTING VISIONS OF RACE RELATIONS IN JAPAN ARE ILLUMINATED BY A NEW DOCUMENTARY STRUGGLE & SUCCESS THE AFRICANAMERICAN EXPERIENCE IN JAPAN SHOWS THE JAPAN WHERE CHILDREN CHERISH GROTESQUE SAMBO DOLLS BLACKFACE BUFFOONERY IS A TELEVISION STAPLE AND POLITICIANS MAKE OVERTLY RACIST COMMENTS BUT IT ALSO SHOWS ANOTHER SIDE THROUGH THE EYES OF BLACK PROFESSIONALS AND ENTREPRENEURS SOME WITH JAPANESE SPOUSES THEY SPEAK OF JAPAN'S APPRECIATION OF BLACK POPULAR CULTURE AND RESPECT FOR PEOPLE OF ANY COLOR WHO PROVE THEMSELVES IN BUSINESS AND THEY SAY THEIR ADOPTED HOME HAS NO RACETINGED CRIME OR OPEN CLASS CONFLICTS AS A RESULT JAPAN OFFERS YOU A FORM OF PSYCHIC FREEDOM YOU DON'T HAVE TO TALK ABOUT RACE ON A DAILY BASIS SAYS CBS TELEVISION REPORTER BILL WHITTAKER INTERVIEWED FOR THE FILM DURING A TOKYO POSTING IN THE FILM MR WHITTAKER RECALLS AN INSTANCE OF HOUSING DISCRIMINATION BUT NOTES P BAI ARKRIDGE A BLACK IBM EXECUTIVE WHO WORKED IN JAPAN FOR THREE YEARS MOST AFRICAN AMERICANS GROW UP EXPECTING HOUSING DISCRIMINATION IN THE US WHAT MR ARKRIDGE DIDN'T EXPECT WAS THE WAY JAPANESE PEOPLE ACCEPTED HIS AUTHORITY THE INSTANT HE DISPLAYED HIS BUSINESS CARD HE SAYS THAT DOESN'T ALWAYS HAPPEN IN THE US REGGE LIFE A LOS ANGELESBASED DOCUMENTARY FILMMAKER WHO DIRECTED AND PRODUCED THE FILM CREDITS JAPANESE RESPECT FOR MAJIME OR SERIOUSNESS OF PURPOSE FOR BLACKS' REPORTS OF PERSONAL VALIDATION IN ONE OF THE MOST COMPETITIVE SOCIETIES ON EARTH MR LIFE SAYS HIS LEARNED MAJIME ATTITUDE HELPED HIM SECURE 200000 IN FUNDING FROM JAPANESE SOURCES TO MAKE THE FILM IT HAS HAD TWO HIGHLY WATCHED AIRINGS ON JAPANESE TELEVISION MR LIFE HOPES IT WILL MAKE ITS US TV DEBUT BY THIS FALL WHITE FLIGHT CAN YIELD UNEXPECTED LESSONS ON HOW AND WHERE TO GROW A BUSINESS WHEN KARIN JURICK'S FATHER BOUGHT A GREAT FRAME UP FRANCHISE IN 1979 IN DEKALB COUNTY OUTSIDE ATLANTA THE COUNTY WAS 14 BLACK IN THE 1980S THE JURICKS BOUGHT A SECOND STORE IN THE CHAIN IN ADJACENT GWINNETT COUNTY WITH A BURGEONING WHITE SUBURBAN POPULATION BY 1990 DEKALB COUNTY WAS 42 BLACK AND CLIMBING BUT WHEN MS JURICK HAD TO SELL ONE STORE AFTER HER FATHER'S DEATH THAT YEAR SHE DECIDED TO KEEP THE DEKALB STORE AND ITS 60 BLACK CLIENTELE WHY MS JURICK WHO IS WHITE SAYS SHE LOVES THE WIDE RANGE OF BLACK AND CONTEMPORARY ART AND THE CREATIVE FRAMING STYLES SHE LEARNED TO SELL TO SATISFY DEKALB'S BLACK MIDDLECLASS CLIENTELE IN GWINNETT COUNTY SHE SAYS IT WAS PEOPLE MOVING INTO THE SAME KIND OF HOUSES BUYING THE SAME KIND OF ART AND FRAMING IT THE SAME WAY WE COULDN'T KEEP ENOUGH BLUE AND MAUVE MAT BOARDS OUT THERE SOME NEIGHBORING SHOPS HAVE LEFT ALONG WITH THE WHITE HOMEOWNERS BUT MS JURICK DECIDED IN MAY TO RENEW HER LEASE AND IMPROVE HER STORE MANY BUSINESSES WERE PESSIMISTIC AND DIDN'T BELIEVE THE BUYING POWER IN THE BLACK COMMUNITY SHE SAYS I THINK THEY'RE WRONG I SIMPLY CAN'T JUSTIFY MOVING MS JURICK'S EXPERIENCE HAS SPURRED THE PARENT COMPANY BASED IN FRANKLIN PARK ILL TO RECONSIDER THE FORMULA IT USED TO GROW TO 130 STORES FOR YEARS THE COMPANY SIMPLY REPLICATED ITS SUCCESS BY OPENING STORES IN AFFLUENT WHITE SUBURBS STEVE BELLEW EXECUTIVE VICE PRESIDENT SAYS THE FIRM PLANS TO DOUBLE ITS GROWTH RATE TO 25 STORES A YEAR NEXT YEAR EXPANDING AT THAT RATE WILL MEAN INCLUDING A LOT OF THESE MINORITY COMMUNITIES THAT WE HAVEN'T GOTTEN TO VERY WELL MR BELLEW SAYS DRAMATIC ATTEMPTS TO ENTER THE US BY ILLEGAL ALIENS FROM CHINA BRING A CALL FOR EASING IMMIGRATION POLICY TOWARD ASIANS STANFORD LAW SCHOOL PROFESSOR WILLIAM HING ARGUES FOR SUCH A MOVE BECAUSE OF PRIOR DISCRIMINATION AND STRONG DEMAND TO ENTER THE US FROM ASIA IN A NEW BOOK HE NOTES THAT US IMMIGRATION LAW HAD ITS ORIGINS LARGELY IN LIMITING CHINESE AND OTHER ASIANS UNDER A SERIES OF ACTS FROM 1870 TO 1904 ONLY 155000 ASIANS ENTERED THE US FROM 1900 TO 1910 WHEN OVER EIGHT MILLION MOSTLY EUROPEAN IMMIGRANTS CAME IN IN 1965 WITH ASIANS MAKING UP LESS THAN 05 OF THE US POPULATION CONGRESS REVISED THE LAW TO ALLOW A MAXIMUM OF 20000 VISAS ANNUALLY PER NATION UNDER A COMPLEX FORMULA THAT FAVORED IMMIGRANTS WITH CLOSE US FAMILY TIES LAWMAKERS THOUGHT THE RULES WOULD BRING MOSTLY EUROPEANS BUT SKILLED AND EDUCATED ASIANS FILLED OTHER SLOTS RESERVED FOR DESIRABLE WORKERS QUICKLY BECAME CITIZENS AND SPONSORED RELATIVES ASIANS NOW ACCOUNT FOR 40 OF US IMMIGRATION MR HING SAYS BUT THE CURRENT SYSTEM DOESN'T REDRESS THE DECADES OF EXCLUSION OR MEET PENTUP DEMAND FOR VISAS THE WAITING LIST FOR RELATIVES CAN EXCEED 10 YEARS MR HING SAYS HIS MOTHER DIED IN THE 1970S STILL WAITING FOR A SIBLING TO JOIN HER HERE BUT IRA MEHLMAN A SPOKESMAN FOR THE FEDERATION FOR AMERICAN IMMIGRATION REFORM A GROUP LOBBYING TO SLASH US IMMIGRATION ARGUES AGAINST USING POLICY TO REDRESS HISTORY WE SHOULDN'T BE LOOKING AT RACE OR ETHNICITY WE SHOULD BE LOOKING AT NUMBERS AND THEN AWARD VISAS BASED ON WHAT IMMIGRANTS CAN CONTRIBUTE TO AMERICA HE SAYS REVENUE OF HISPANICOWNED BUSINESSES IN THE US GREW 2 TO A RECORD 10 BILLION IN 1992 ACCORDING TO HISPANIC BUSINESS MAGAZINE'S ANNUAL RANKING OF THE TOP 500 COMPANIES DESPITE THE LOSS OF PERENNIAL NO 1 BACARDI AND PIZZA MANAGEMENT A FASTFOOD FRANCHISEE THAT WAS NO 7 IN 1991 BACARDI'S OWNERSHIP MOVED OFFSHORE LAST YEAR WHILE PIZZA MANAGEMENT WAS SOLD BACK TO FRANCHISER PEPSICO THE DALLAS TOGETHER FORUM A GROUP OF BUSINESS AND PROFESSIONAL LEADERS SAYS 36 COMPANIES BASED IN THE DALLAS AREA HAVE PLEDGED TO INCREASE MINORITY HIRING AND DO MORE BUSINESS WITH MINORITYOWNED COMPANIES PARTICIPATING BUSINESSES INCLUDING AMR AND JC PENNEY WILL PUBLISH THEIR RESULTS STARTING NEXT SPRING 9404220207 930928 WHO'S NEWS PSI RESOURCES NAMES JOHN MUTZ PRESIDENT IN ADVANCE OF MERGER PLAINFIELD IND JOHN MUTZ PRESIDENT OF THE LILLY ENDOWMENT CHARITY AND A FORMER INDIANA LIEUTENANT GOVERNOR WAS NAMED PRESIDENT OF PSI RESOURCES INC A UTILITY HOLDING COMPANY MR MUTZ 57 YEARS OLD A PSI DIRECTOR SINCE 1991 SUCCEEDS JAMES E ROGERS MR ROGERS REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER PSI IS SEEKING TO MERGE WITH CINCINNATI GAS & ELECTRIC CO TO FORM A NEW HOLDING CONCERN KNOWN AS CINERGY WHEN THAT MERGER GOES THROUGH PSI RESOURCES SAID MR MUTZ WILL BE PRESIDENT OF CINERGY'S PSI ENERGY INC UNIT A POSITION THAT WILL GIVE HIM RESPONSIBILITY FOR ALL CINERGY OPERATIONS IN INDIANA 9404220016 930920 MARKETING & MEDIA ADVERTISING AD MYTH SENIORS NEED BOY SCOUTS TO WALK ACROSS MADISON AVENUE BY KEVIN GOLDMAN IT'S BECOME AN OLD STORY IN ADVERTISING THE ELDERLY WOMAN IN A NEW COMMERCIAL FOR DORITOS TORTILLA THINS IS A DODDERING OLD FOOL IN ANOTHER SPOT FOR DENNY'S RESTAURANTS AN OLDSTER OBVIOUSLY ADDLED STUMBLES OVER THE CHAIN'S NAME CALLING IT LENNY'S IT MAY BE THE AGE OF POLITICAL CORRECTNESS AND A TIME WHEN THE NATION'S POPULATION IS RAPIDLY SKEWING OLDER BUT ON MADISON AVENUE SENIOR CITIZENS ARE STILL FAIR GAME FOR RIDICULE ALL TOO MANY COMMERCIALS FALL BACK ON STEREOTYPES SHOWING THE AGED AS FEEBLE FOOLISH OR INEPT PASSING THEIR TIME AIMLESSLY IN ROCKING CHAIRS IT IS IN ADVERTISERS' SELFINTEREST TO AVOID SUCH GAFFES ARGUES CAROL M MORGAN PRESIDENT OF THE MINNEAPOLISBASED MARKETING CONSULTANTS STRATEGIC DIRECTIONS GROUP THOSE AGE 50 AND OLDER MAKE UP 35 OF THE POPULATION AND CONTROL 43 OF THE NATION'S DISPOSABLE INCOME ACCORDING TO MODERN MATURITY MAGAZINE QUOTING THE LATEST CENSUS FIGURES THE AGE GROUP NO LONGER DESERVES THE STEREOTYPE THAT IT IS INFIRM OR IN DESPERATE NEED OF HELP MS MORGAN SAYS YET THE OUTDATED IMAGES PERSIST IN THE DORITOS AD FOR EXAMPLE A GRAYHAIRED WOMAN SHUFFLES ALONG MUNCHING ON CHIPS OBLIVIOUS TO THE RUNAWAY STEAMROLLER BARRELING DOWN ON HER COMEDIAN CHEVY CHASE CLIMBS ABOARD A WRECKING BALL TO RESCUE AND HERE IS THE JOKE THE CHIPS THE WOMAN IS PLOWED INTO WET CEMENT IT IS NOT OUR INTENTION TO OFFEND ANYONE SAYS A SPOKESWOMAN FOR DORITOS A UNIT OF PEPSICO'S FRITOLAY DIVISION LIKE ANY HUMOROUS AD THIS WAS DEVELOPED TO ENTERTAIN IT IS AN OUTRAGEOUS SPOOF INCLUDING A SURPRISE TWIST WITH AN OLDFASHIONED WINK BUT SOME CONSUMERS AREN'T LAUGHING WORSE THAN BEING OFFENSIVE IT'S DUMB SAYS DAN DIXON A PARTNER OF OLDER & WISER A SMALL LOS ANGELES AGENCY THAT SPECIALIZES IN ADVERTISING TO THE ELDERLY MOST ADVERTISING CAMPAIGNS DON'T PORTRAY OLDER PEOPLE WITH ANY SEMBLANCE OF REALITY ANYMORE NOR IS CHANGE LIKELY ANYTIME SOON WE'RE MAKING PROGRESS IN INCHES SAYS MR DIXON'S PARTNER RON PHILLIPS THE TOPIC OF MEDIA AND THE AGING WAS DISCUSSED THIS MONTH AT A CONFERENCE SPONSORED BY THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES'S CENTER ON AGING THE AD I HATE IS FOR DENNY'S SAYS ANNA RAHMAN PROJECT COORDINATOR FOR THE CONFERENCE IT'S DEGRADING DISRESPECTFUL AND SHOCKING SINCE DENNY'S CATERS TO SO MANY SENIOR CITIZENS IN THE RADIO SPOT TWO WOMEN PORTRAYING SISTERS CHAT ABOUT DINNER SPECIALS WHEN ONE TRIPS OVER THE RESTAURANT'S NAME FUMES MS RAHMAN WHAT DO THEY THINK THEY'RE SHOWING ALZHEIMER'S A SPOKESWOMAN FOR DENNY'S BASED IN SPARTANBURG SC SAYS NO OFFENSE WAS INTENDED SOME INDUSTRY EXPERTS LAY THE BLAME ON THE FACT THAT ADVERTISING BE IT COPYWRITING OR STRATEGIC PLANNING OR ART DESIGN IS DOMINATED BY YOUNG GOGETTERS WHO MAY BE UNAWARE OR WORSE HEEDLESS OF OLDER CONSUMERS' SENSITIVITIES ONE OF THE HARSHEST CRITICS OF THE TREND IS TERESA DRURY MODERN MATURITY'S ADVERTISING STANDARDS DIRECTOR ADVERTISERS SHE SAYS PICK THE WORST TRAITS OF THE GROUP MAKING EVERYONE BELIEVE THAT OLD IS SOMETHING YOU DON'T WANT TO BE MS DRURY SAYS THE MONTHLY PUBLISHED BY THE AMERICAN ASSOCIATION OF RETIRED PERSONS BASED IN WASHINGTON DC REJECTS APPROXIMATELY 30 OF THE ADS SUBMITTED FOR CONSIDERATION BECAUSE OF NEGATIVE PORTRAYALS OF ITS CONSTITUENCY SHE DECLINES TO CITE SPECIFIC EXAMPLES INSTEAD MS DRURY SAYS THE PERIODICAL REJECTS ANYTHING THAT SHOWS A STEREOTYPE AND THAT MEANS NO ROCKING CHAIRS AND WHEELCHAIRS READERS OF MODERN MATURITY SHE SAYS KNOW THEY ARE 50 YEARS OLD OR OLDER OUR ADS DON'T MENTION LEAKY BLADDERS IF THIS IS HAPPENING TO SOMEONE THEY'VE FIGURED OUT IT'S EMBARRASSING AND THEY NEED SOMETHING FOR IT OUR ADS ARE MORE STRAIGHTFORWARD AND THEY SHOW OLDER PEOPLE IN A POSITIVE LIGHT ADVERTISERS PAY PREMIUM RATES TO BE INCLUDED IN THE MAGAZINE WHICH HAS A CIRCULATION OF APPROXIMATELY 23 MILLION SUBSCRIPTIONS ARE INCLUDED WITH MEMBERSHIP IN AARP A FULLPAGE AD COSTS A LOFTY 225000 ACCORDING TO MS DRURY THE MAGAZINE WELCOMES ADS FROM SAY KRETSCHMER WHEAT GERM A QUAKER OATS PRODUCT IN ONE RECENT AD A BALD MAN IN SNORKELING GEAR IS SEEN SUBMERGED IN THE SURF OFF A TROPICAL ISLAND THE HEADLINE READS WHAT'S GOTTEN INTO MR LEWIS THE ANSWER IT COULD BE THE KRETSCHMER WHEAT GERM ANOTHER AD FOR USAIR HEADLINED NOW IS THE TIME TO HAVE THE TIME OF YOUR LIFE SHOWS A SMILING PHYSICALLY FIT TANNED COUPLE LOUNGING IN A POOL EVEN A MAJOR BEER BREWER ANHEUSERBUSCH PRODUCES A SPECIAL AD AIMED AT THE OLDERAGE CATEGORY ADS FOR O'DOUL'S BEER SHOW ANOTHER ROBUST OLDER COUPLE PLAYING TENNIS THESE ADS ARE A FAR CRY FROM THOSE FOR EDY'S ICE CREAM ITS TELEVISION COMMERCIALS SHOW AN ELDERLY MAN HUNCHED IN A ROCKING CHAIR WHEN HE'S TOLD THAT EDY'S ICE CREAM HAS BEEN PURCHASED HE SLOWLY RISES AND THEN SUDDENLY PERFORMS A FLAWLESS SPLIT THAT WOULD DO MARY LOU RETTON PROUD WE WOULD NEVER WANT TO OFFEND OLDER PEOPLE SAYS AN EDY'S SPOKESWOMAN THE SENIOR MARKET IS ONE OF THE GREATEST CONSUMERS OF ICE CREAM WE JUST LIKE TO FIND COMMERCIALS THAT PUT SMILES ON PEOPLE'S FACES SHE EVEN MENTIONS THE COMPANY'S GOLDEN CONE CLUB FOR SENIORS WHICH CONSISTS OF A NEWSLETTER AND DISCOUNT COUPONS MS MORGAN OF STRATEGIC DIRECTIONS SEES A HUGE LACK OF SOPHISTICATION AMONG PEOPLE ADVERTISING TO THE MATURE MARKET AND SHE DECLARES IT'S TIME THE ADVERTISERS GREW UP AND MATURED MARK GOLDSTEIN PRESIDENT OF AGENCY EARLE PALMER BROWN IS LEAVING TO PURSUE A NEW OPPORTUNITY IN THE MIDWEST THE AGENCY SAID MR GOLDSTEIN COULDN'T BE REACHED INDUSTRY EXECUTIVES SAID MR GOLDSTEIN IS GOING TO MINNEAPOLIS AGENCY FALLONMCELLIGOTT A UNIT OF WPP GROUP TO OVERSEE AN INTEGRATED MARKETING UNIT FORMED IN A RESTRUCTURING IN MAY FALLON EXECUTIVES EITHER COULDN'T BE REACHED OR DIDN'T RETURN PHONE CALLS A SPOKESMAN FOR EARLE PALMER BROWN BASED IN BETHESDA MD SAID MR GOLDSTEIN'S DUTIES PRIMARILY NEW BUSINESS WOULD BE ASSUMED BY THE HEADS OF ITS OPERATING OFFICES FCB ACQUISITION AS EXPECTED FOOTE CONE & BELDING CHICAGO SAID IT HAS SIGNED AN AGREEMENT TO ACQUIRE AGENCY BORDERS PERRIN & NORRANDER WITH 65 EMPLOYEES AND 1992 BILLINGS OF ABOUT 50 MILLION FOOTE CONE SAID IT WILL ACQUIRE THE SHOP'S SEATTLE AND PORTLAND OFFICES AND TAKE A MAJORITY STAKE IN ITS SANDSTROM DESIGN GROUP PETER HATT CHAIRMAN AND CHIEF EXECUTIVE AND BILL BORDERS PRESIDENT WILL REMAIN IN PLACE REPORTING TO JACK BALOUSEK FOOTE CONE PRESIDENT WHO'S NEWS OMNICOM GROUP'S ALTSCHILLER REITZFELD NEW YORK SAID ROBERT REITZFELD VICE CHAIRMAN AND CHIEF CREATIVE OFFICER IS LEAVING AT YEAR'S END WHEN HIS CONTRACT EXPIRES MR REITZFELD 52 SAID HE WANTS TO PURSUE OTHER OPTIONS IN ADVERTISING 9404220017 930812 THE NEW TAX LAW SEARCHING FOR SHELTER HOME LOANS ARE TEMPTING BUT TRICKY BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL NEW HIGHER TAX RATES ARE PROMPTING MANY PEOPLE TO TAKE A SECOND LOOK AT THEIR ONLY REMAINING TAX DEDUCTION OF ANY SIGNIFICANCE HOME MORTGAGE INTEREST WITH THE TOP STATED INCOME TAX RATES NOW 36 AND 396 UP FROM 31 UPPERINCOME HOMEOWNERS WILL FIND THAT THE VALUE OF THEIR MORTGAGE INTEREST DEDUCTION HAS INCREASED LET'S ASSUME I BORROW FOR 7 ON A 30YEAR FIXED BASIS SAYS STEVEN WEINSTEIN NATIONAL DIRECTOR OF PERSONAL FINANCIAL PLANNING AT ARTHUR ANDERSEN IF I AM IN THE 396 BRACKET MY AFTERTAX COST OF DEBT IS 42 THAT'S DOWN FROM 48 UNDER THE OLD TOP RATE NOT A HUGE DIFFERENCE PERHAPS BUT WITH UNCLE SAM PICKING UP MORE OF THE INTEREST EXPENSE SOME WELLHEELED PEOPLE MAY FIND THAT IT MAKES SENSE TO TAKE THE BIGGER MORTGAGE THAT WOULD ALLOW THEM TO BUY A MORE EXPENSIVE HOME HOMEOWNERS COULD FIND THIS A GOOD TIME TO BORROW MONEY FOR AN ADDITION TO THE HOUSE STILL OTHERS MAY DECIDE IT'S TIME TO USE THEIR HOME EQUITY TO LEVERAGE A PORTFOLIO OF STOCKS FOR LONGTERM INVESTING BUT BEFORE YOU RUSH OUT AND BOOST YOUR MORTGAGE DEBT TAKE A CLOSE LOOK AT THE RULES MORTGAGE INTEREST DEDUCTIONS ARE GOVERNED BY SOME COMPLEX REGULATIONS UNLESS YOU UNDERSTAND THEM YOU CAN ACTUALLY END UP INCREASING YOUR TAX BILL WILLIAM G BRENNAN A WASHINGTONBASED PARTNER WITH ACCOUNTANTS ERNST & YOUNG CITES ONE CLIENT WHO BOUGHT A HOUSE FOR 1 MILLION CASH THEN LATER DECIDED HE NEEDED THE MONEY AND GOT AN 800000 MORTGAGE WHEN THE CLIENT SHOWED UP AT MR BRENNAN'S DOOR WITH HIS TAX FORMS HE EXPECTED TO BE ABLE TO WRITE OFF THE MORTGAGE INTEREST INSTEAD HE FOUND 700000 OF THAT LOAN OFFERED NO TAX DEDUCTIONS AT ALL THE REASON THE INTERNAL REVENUE SERVICE NO LONGER VIEWS ALL MORTGAGE INTEREST THE SAME WAY SINCE 1987 IT HAS DIVIDED MORTGAGE INTEREST INTO TWO TYPES THE FIRST IS INTEREST ON DEBT INCURRED TO BUY BUILD OR SUBSTANTIALLY IMPROVE EITHER A PRIMARY OR SECOND HOME THAT'S CALLED ACQUISITION DEBT YOU CAN DEDUCT INTEREST ON A TOTAL OF AS MUCH AS 1 MILLION OF ACQUISITION DEBT BUT IF YOU ALREADY OWN YOUR HOME YOU CAN'T INCREASE YOUR ACQUISITION DEBT UNLESS YOU BORROW FOR EXAMPLE TO BUILD AN ADDITION OR REMODEL THE KITCHEN THE SECOND KIND OF DEBT IS HOME EQUITY DEBT THIS INCLUDES NOT ONLY HOMEEQUITY LOANS BUT ANY INCREASE IN THE SIZE OF YOUR MORTGAGE WHEN YOU REFINANCE HERE THE LIMITS ARE FAR LOWER WITH INTEREST ON ONLY 100000 OF HOMEEQUITY DEBT DEDUCTIBLE ON YOUR INCOME TAXES PEOPLE WHO FALL UNDER THE ALTERNATIVE MINIMUM TAX WHICH CAN BE TRIGGERED BY SUCH THINGS AS EXERCISING STOCK OPTIONS ARE IN A SPECIAL CATEGORY THEY GET NO TAX DEDUCTION FOR ANY INTEREST PAID ON HOMEEQUITY DEBT THERE ARE ADDITIONAL CONSIDERATIONS IF YOU WANT TO TAP YOUR HOME EQUITY TO BUILD AN INVESTMENT PORTFOLIO FOR ONE THING DON'T USE THE MONEY TO INVEST IN TAXEXEMPT MUNICIPAL BONDS OR YOUR INTEREST DEDUCTION MAY BE DENIED IN FACT YOU DON'T WANT TO BE IN FIXEDINCOME INVESTMENTS AT ALL THE KEY SAYS TIM KOCHIS A SAN FRANCISCO FINANCIAL PLANNER IS TO GET AN AFTERTAX RETURN HIGHER THAN THE COST OF YOUR MORTGAGE MONEY THAT MR KOCHIS SAYS SHOULDN'T BE HARD AS LONG AS YOU INVEST IN STOCKS OR STOCK MUTUAL FUNDS YOU OUGHT TO EXPECT YOUR AFTERTAX EQUITY RETURN TO BE IN A POSITION OF 6 7 OR 8 DEPENDING ON THE LEVEL OF RISK YOU ARE TAKING HE SAYS BUT THIS APPROACH ISN'T FOR EVERYONE TO BEGIN WITH IT MAKES NO SENSE AT ALL IF YOU AREN'T WILLING TO PUT YOUR MONEY INTO STOCKS IF YOU DON'T INVEST FOR THE LONG TERM OR IF YOU ARE GOING TO NEED THE MONEY IN THE NEXT FIVE YEARS YOU ALSO PROBABLY SHOULDN'T RUN OUT AND REFINANCE YOUR HOUSE UNLESS YOU ARE LOOKING TO LOWER YOUR MORTGAGE RATE THE INVESTMENT STRATEGY JUST DOESN'T JUSTIFY THE COSTS OF REFINANCING WHICH CAN RUN SEVERAL THOUSAND DOLLARS STEVEN ENRIGHT A RIVER VALE NJ FINANCIAL PLANNER SAYS ONE OF HIS CLIENTS RECENTLY ADDED 25000 TO HER EQUITY LINE OF CREDIT IN ORDER TO INCREASE HER INVESTMENTS THE CONCEPT WORKED HE SAYS BECAUSE SHE GOT A FIXEDRATE HOME EQUITY LINE WITH NO CLOSING COSTS EVEN IF YOU KEEP THE COSTS DOWN THERE ARE OTHER REASONS NOT TO TURN HOME EQUITY INTO A STOCK PORTFOLIO CLEVELAND TAX ATTORNEY TERRENCE PERRIS RECALLS THAT THE 1980S OFFERED A GREAT TAX SITUATION FOR COMPANIES TO LEVERAGE THEMSELVES TOO AND LOOK WHAT HAPPENED BANKRUPTCY INDEED MANY OF THE PEOPLE BEST ABLE TO TAKE ADVANTAGE OF THIS STRATEGY APPARENTLY WANT NOTHING TO DO WITH IT INSTEAD OF BORROWING MORE ROBERT E WILLARD A COLORADO SPRINGS COLO FINANCIAL PLANNER SAYS HIS WEALTHIER CLIENTS ARE PAYING OFF THEIR MORTGAGES MY CLIENTS ARE UNIVERSALLY FURIOUS AT THIS TAX BILL BECAUSE THEY FEEL IT WILL BE BAD FOR THE ECONOMY HE SAYS THEIR REASON FOR NOT WANTING TO INCREASE DEBT TO PROTECT AGAINST THAT FACTOR 9402280058 931229 INTERNATIONAL SOUTH KOREA SLOWS DOWN ARMS PURCHASES CORRUPTION INEFFECTIVENESS PLAGUE 20YEAR BUILDUP BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA DESPITE THE THREAT FROM NORTH KOREA THIS HEAVILY ARMED COUNTRY HAS LOST ITS APPETITE FOR NEW WEAPONRY WITH THE YEAR COMING TO A CLOSE THE MINISTRY OF NATIONAL DEFENSE HAS SPENT ONLY ABOUT 15 OF ITS 4 BILLION PROCUREMENT BUDGET DEFENSE BUREAUCRATS DON'T SEEM TO BE NEARLY AS AFRAID OF NORTH KOREA AS THEY ARE OF AROUSING THE SUSPICIONS OF SOUTH KOREAN GOVERNMENT INVESTIGATORS WHO THIS YEAR TURNED UP RAMPANT CORRUPTION IN A 20YEAR MILITARYPROCUREMENT PROGRAM KNOWN AS YULGOK WITH THE BUREAUCRATS HUNKERING DOWN CONTRACTS FOR NEW WEAPONS PROJECTS HAVE BEEN PUT ON HOLD AND THE MINISTRY IS QUIETLY CONSIDERING SCRAPPING OR REVISING WEAPONRY ALREADY IN PRODUCTION THIS DISARRAY HAS RAISED FUNDAMENTAL QUESTIONS ABOUT THE EFFECTIVENESS OF THE YULGOK BUILDUP ON WHICH SOUTH KOREA IS EXPECTED TO HAVE SPENT AROUND 37 BILLION BY THE TIME THE PROJECT ENDS IN THE LATE 1990S IF NORTH KOREA DOES SOMETHING IS OUR MILITARY PREPARED ASKS KIM DONG GILL A MEMBER OF THE INDEPENDENT UNITED PEOPLE'S PARTY THE ANSWER MILITARY EXPERTS SAY IS THAT SOUTH KOREAN DEFENSE OFFICIALS HAVE LONG RELIED ON US FORCES TO REPEL ANY ATTACK FROM THE NORTH WITH THAT US SHIELD THEY HAVE IN RECENT YEARS SPENT BILLIONS OF DOLLARS ON WEAPON SYSTEMS THAT ARE PERIPHERAL TO THE OBJECTIVE OF REPELLING SUCH AN INVASION SINCE THE LATE 1980S MILITARY PLANNERS HAVE USED ARMS PROCUREMENT TO PROMOTE THE TRANSFER OF HIGH TECHNOLOGY TO LOCAL INDUSTRY AT THE SAME TIME THEY HAVE SOUGHT TO BOLSTER SOUTH KOREA'S ABILITY TO FIGHT POTENTIAL ENEMIES OTHER THAN NORTH KOREA WHICH MANY PEOPLE HERE EXPECT WILL COLLAPSE ON ITS OWN EVENTUALLY ANTICORRUPTION INSPECTORS HAVE FOUND THAT SOME OF SOUTH KOREA'S MILITARY HARDWARE WAS ACQUIRED DESPITE PROTESTS FROM KOREAN OFFICERS IN THE FIELD MUCH OF THE EQUIPMENT PURCHASED UNDER THE YULGOK PROJECT IS ALSO INCOMPATIBLE WITH THE ARSENAL USED BY THE 36000 US TROOPS STATIONED HERE MANY WEAPONS HAVE PROVEN UNRELIABLE AND ARE BEING CANCELED OR MODIFIED GAPS IN THE SOUTH KOREAN MILITARY INCLUDE AN ANTIAIRCRAFT BATTERY WITHOUT AN OPTICAL MECHANISM THAT ENABLES GUNNERS TO DISTINGUISH BETWEEN HOSTILE AND FRIENDLY AIRCRAFT AN OUTDATED RADAR SYSTEM FOR THE PROTECTION OF SEOUL A BATTLE TANK THAT FREQUENTLY STALLS OWING TO A FAULTY TRANSMISSION WHICH THE MINISTRY PLANS TO REPLACE A DECK GUN TO BE USED ABOARD KOREA'S PROPOSED DESTROYER THAT IS INCOMPATIBLE WITH US AMMUNITION LAST WEEK PRESIDENT KIM YOUNG SAM REPLACED DEFENSE MINISTER KWON YOUNG HAE AS PART OF A CABINET SHAKEUP MR KWON HAD BEEN UNDER A CLOUD FOLLOWING THE ANNOUNCEMENT THAT FRENCH ARMS DEALERS HAD DEFRAUDED THE MINISTRY OF 67 MILLION LAWMAKERS HAD CALLED FOR MR KWON'S RESIGNATION IN THE AFTERMATH OF THE YULGOK INVESTIGATION THE DEFENSE MINISTRY IS BEGINNING TO ADDRESS THE WEAK LINKS PURCHASED UNDER THE YULGOK PROJECT WHICH IS NAMED AFTER A 16TH CENTURY COURT ADVISER WHOSE WARNINGS AGAINST AN IMPENDING JAPANESE INVASION WERE IGNORED THE MINISTRY CANCELED PRODUCTION OF A MOBILE MISSILE LAUNCHER UNDER DEVELOPMENT SINCE 1985 AND SUSPENDED DEVELOPMENT OF A SELFPROPELLED ANTIAIRCRAFT BATTERY FORFEITING ITS BUDGET ALLOCATION FOR THE YEAR OF 10 BILLION WON 124 MILLION BOTH SYSTEMS WERE BESET BY PROBLEMS AND COST OVERRUNS ACCORDING TO KOREAN LAWMAKERS THE INVESTIGATION INTO MILITARY PROCUREMENT WAS LAUNCHED AS PART OF PRESIDENT KIM'S CORRUPTION CRACKDOWN WHICH HAS HIT MANY OF SOUTH KOREA'S POLITICAL ELITE SEVERAL DEFENSE OFFICIALS INCLUDING TWO FORMER DEFENSE MINISTERS WERE JAILED THIS YEAR FOR ACCEPTING KICKBACKS AND EMBEZZLING FUNDS ALSO JAILED WAS CHUNG UI SUNG THE PRESIDENT OF ARMS AGENT HAKSAN INDUSTRIAL CO NOW KNOWN AS SYSTEMS TECH INC FOR ALLEGEDLY BRIBING MINISTRY OFFICIALS INVESTIGATORS WERE VAGUE ABOUT WHICH CONTRACTS WERE TAINTED HOWEVER AMONG THE QUESTIONS IS WHY THE SOUTH KOREAN NAVY EMBARKED ON AN UPGRADE PROGRAM THAT INCLUDES DESTROYERS AND SUBMARINES WHEN THE US SEVENTH FLEET WOULD SUPPORT SOUTH KOREA DURING WARTIME YOU HAVE TO QUESTION THE WHY AND WHEREFORE OF THEIR PLAN SAYS A US GOVERNMENT OFFICIAL WHY DO THEY NEED A SUBMARINE WHEN WE HAVE IDENTIFIED MAJOR IMPROVEMENTS WE THINK THEY NEED FOR THEIR GROUND FORCES SUCH AS AN ADEQUATE AIR DEFENSE SYSTEM FOR SEOUL ONE REASON SAY DIPLOMATS AND ARMS AGENTS IS KOREA'S DESIRE FOR HIGH TECHNOLOGY IN THE LATE 1980S THE MINISTRY BEGAN DIVERSIFYING ITS SOURCES OF WEAPONRY AWAY FROM THE US BECAUSE OF THE PENTAGON'S RELUCTANCE TO SHARE DEFENSE TECHNOLOGY THE 1987 PURCHASE OF FOUR GERMAN SUBMARINES FOR EXAMPLE IS HAILED AS A MODEL OF THE NEW PROCUREMENT POLICY THE SUBMARINES' BATTERIES RADAR SYSTEM AND TELECOMMUNICATIONS NETWORK WILL SOON BE DEVELOPED IN KOREA THE MINISTRY SAYS WE HAVE MANY PRIORITIES IN PROCUREMENT SAYS A MINISTRY OFFICIAL CLOSE TO THE ARMS SELECTION COMMITTEE PRICING COMBAT EFFECTIVENESS AND TECHNOLOGY TRANSFER SOMETIMES ONE OVERRIDES THE OTHERS COMBAT EFFECTIVENESS IS NOW DEFINED BY THE MINISTRY TO INCLUDE DEFENSE READINESS AGAINST POTENTIAL REGIONAL FOES CHINA JAPAN AND RUSSIA THAT PARTLY EXPLAINS THE PLAN FOR A DEEPWATER FLEET DUE TO BE COMMISSIONED WITHIN THE NEXT THREE TO FIVE YEARS BY THAT TIME US AND KOREAN GOVERNMENT OFFICIALS SAY AMERICA WILL PROBABLY BE REDUCING ITS MILITARY PRESENCE IN THE REGION THE DEFENSE MINISTRY REJECTED FORMAL REQUESTS FOR INTERVIEWS AND US MILITARY OFFICERS HERE DECLINED TO COMMENT ON YULGOKRELATED PROJECTS IN AN ATTEMPT TO PLUG THE HOLES IN SOUTH KOREA'S DEFENSES OFFICIALS RECENTLY HAVE EXPRESSED INTEREST IN BUYING AWAC AIRPLANES MADE BY BOEING CO AND PATRIOT MISSILES MADE BY RAYTHEON CO DESPITE INITIAL STEPS DIPLOMATS AND ARMS BROKERS SAY IT COULD TAKE YEARS BEFORE THE MILITARY'S PROCUREMENT PROCESS IS CLEANED UP AND ITS ARSENAL IS HARMONIZED IN THE MEANTIME THE ARMY IS HOBBLED BY DEFECTIVE OR INCOMPATIBLE WEAPONRY A GOOD EXAMPLE IS THE K1 TANK WHICH WAS DEVELOPED BY GENERAL DYNAMICS CORP AND HYUNDAI PRECISION & INDUSTRY CO THE TANK IS BASED ON THE US M1 BUT EMPLOYS AN ARRAY OF FIRING AND NAVIGATIONAL SYSTEMS FROM DIFFERENT COUNTRIES WHICH HAVE PROVED IMPOSSIBLE TO INTEGRATE EFFECTIVELY SINCE ITS ROLLOUT IN 1987 THE TANK HAS FREQUENTLY STALLED DURING MANEUVERS MINISTRY OFFICIALS RECENTLY ACKNOWLEDGED THAT THE GERMANBUILT TRANSMISSION WHICH WAS SOLD THROUGH SYSTEMS TECH IS UNDERPOWERED THEY ARE NEGOTIATING WITH NEW CONTRACTORS TO REFIT THE ESTIMATED 600 TANKS PROBLEMS HAVE ALSO PLAGUED THE K1'S GUNSIGHT BUILT BY TEXAS INSTRUMENTS INC A COMPANY OFFICIAL SAYS THE GUNSIGHT IS SOUND BUT A RETIRED KOREAN ARMY GENERAL NOW A RANKING MEMBER OF THE ARMED FORCES COMMITTEE OF KOREA'S LEGISLATURE SAYS THE GUNSIGHT HAS BEEN SENT TO THE US MANY TIMES FOR REPAIR AND THERE IS TALK AMONG ARMS AGENTS THAT IT ALSO WILL BE CHANGED SOME KOREAN ARMY OFFICERS ARE EQUALLY DISTURBED BY THE MINISTRY'S DECISION LAST YEAR TO BUY A BATTERY OF MISTRAL MISSILE LAUNCHERS MADE BY MATRA DEFENSE A UNIT OF FRANCE'S MATRAHACHETTE SA IN A DEAL VALUED AT ABOUT 300 MILLION THE MINISTRY CHOSE THE WEAPON OVER GENERAL DYNAMICS' STINGER AFTER THE PENTAGON REFUSED TO RELEASE THE LATTER'S GUIDANCE AND WARHEAD TECHNOLOGY THE RELIABILITY AND ACCURACY OF THE MISTRAL AREN'T QUESTIONED THE PROBLEM SAY MINISTRY DISSENTERS IS THAT IT ISN'T THE RIGHT WEAPON FOR THE JOB ARMY OFFICERS WANTED A HIGHLY MOBILE LAUNCHER LIKE THE SHOULDERFIRED STINGER TO PROTECT CONVOYS WITHDRAWING UNDER ATTACK THE MISTRAL REQUIRES TWO PEOPLE TO TRANSPORT AND OPERATE AND CANNOT FIRE AS RAPIDLY AS THE STINGER MORE IMPORTANT THE MISTRAL WAS PURCHASED WITHOUT THE OPTICAL MECHANISM KNOWN AS IFF THAT IDENTIFIES APPROACHING AIRCRAFT AS FRIEND OR FOE MATRA MAKES A VERSION OF IFF BUT IT HAS NEVER BEEN TESTED WITH THE US FIGHTERS USED BY THE SOUTH KOREAN AIR FORCE A MATRA OFFICIAL SAYS THE KOREANS HAVEN'T YET DECIDED WHETHER THEY WILL ORDER AN IFF SYSTEM THE SOUTH KOREAN ARMY MAINTAINS A RADAR SURVEILLANCE NETWORK CAPABLE OF IDENTIFYING INCOMING THREATS FOR ANTIAIRCRAFT GUNNERS BUT THE SYSTEM CAN BE EASILY DECEIVED USING ELECTRONIC JAMMING DEVICES US FORCES IN KOREA HAVE BEEN USING A MORE SOPHISTICATED VERSION OF THE SYSTEM FOR THE PAST 15 YEARS IF THE BALLOON GOES UP SYSTEMS THAT AREN'T COMPATIBLE BETWEEN THE US AND KOREAN ARMIES COULD RESULT IN A LOT OF CASUALTIES CAUSED FROM FRIENDLY FIRE SAYS BRUCE WHITEHEAD PRESIDENT OF LITTON KOREA LTD A DIVISION OF THE WHOLLY OWNED LOCAL ARM OF LITTON INDUSTRIES INC THE USBASED DEFENSE ELECTRONICS PRODUCER LITTON IS ONE OF SEVERAL COMPANIES THAT HAVE TRIED TO SELL UPDATED IFF SYSTEMS TO THE MINISTRY THE PENTAGON'S RELUCTANCE TO SHARE MISSILE TECHNOLOGY WASN'T THE ONLY FACTOR THAT INFLUENCED THE MINISTRY'S DECISION SAYS A KOREAN DEFENSE OFFICIAL WE FELT WE OWED THE FRENCH SOMETHING AFTER THEY GAVE US SUCH A GOOD DEAL ON THE SUPER TRAIN HE SAYS REFERRING TO THE 23 BILLION OF ROLLING STOCK AND TECHNOLOGY GECALSTHOM WILL PROVIDE FOR A HIGHSPEED RAIL LINE BETWEEN SEOUL AND PUSAN THERE IS NO LOGIC TO THIS PROCESS JUST AS ILLOGICAL ACCORDING TO SOME DEFENSE ATTACHES WAS THE MINISTRY'S TENDER FOR THE MAIN DECK GUN ABOARD KOREA'S PROPOSED DESTROYER WHICH IS SCHEDULED FOR COMMISSION IN 1996 SHORTLISTED FOR THE CONTRACT WERE FMC CORP OF THE US AND ITALY'S OTO MELARA SPA AFTER A SIXMONTH BIDDING PROCESS THE MINISTRY CHOSE OTO MELARA THE OTO MELARA GUN HAS A 127MILLIMETER 508INCH BORE WHICH IS INCOMPATIBLE WITH THE FIVEINCH ROUNDS THAT THE US MAKES AND WHICH ARE STANDARD ISSUE IN KOREA THE AWARDING OF THE GUN CONTRACT TO OTO MELARA PROMPTED THENUS AMBASSADOR DONALD GREGG TO INFORM THE MINISTRY IN A STRONGLY WORDED LETTER THAT THE US COULDN'T GUARANTEE THE SUPPLY OF AMMUNITION FOR THE GUN IN WARTIME IN A REPLY THE MINISTER SAID THE NAVY COULD MODIFY US ROUNDS TO MAKE THEM FIT THE OTO MELARA GUN BARREL OTO MELARA SPA OF ITALY THE MAKER OF A 127MM NAVAL GUN PROCURED BY THE SOUTH KOREAN NAVY SAYS THAT TRIALS CONDUCTED BY THE ITALIAN NAVY CONFIRM THE GUN'S COMPATIBILITY WITH FIVEINCH US SHELLS AND THAT THE SOUTH KOREAN MILITARY IS SATISFIED WITH THE TEST RESULTS AN ARTICLE DEC 29 ON SOUTH KOREA'S ARMS PURCHASES SAID THE GUN WAS INCOMPATIBLE WITH THE US AMMUNITION A VIEW EXPRESSED BY US DEFENSE OFFICIALS 9402040028 931221 BELTWAY BOG HOW WASHINGTON FRUSTRATES CHANGE POTENT MEDICINE HOW DRUG FIRMS SAVED PUERTO RICO TAX BREAK AFTER CLINTON ATTACK LOBBYISTS TURNED THE FOCUS OF DEBATE TO ISLAND JOBS LEANED ON KEY POLITICIANS WORKING A NEW YORK PARADE BY RICK WARTZMAN AND JACKIE CALMES STAFF REPORTERS OF THE WALL STREET JOURNAL SAN JUAN PUERTO RICO HOISTING BANNERS NEARLY AS WIDE AS THE CITY'S STREETS MORE THAN 100000 PEOPLE RALLIED HERE LAST MARCH TO PLEAD WITH PRESIDENT CLINTON DON'T CUT THE 3 BILLIONAYEAR TAX BREAK FOR COMPANIES OPERATING IN THIS US COMMONWEALTH WE ARE DEFENDING THE JOBS OF PUERTO RICANS CRIED JUNIOR CRUZ HEAD OF THE MAYORS' FEDERATION THE THRONG WHICH HAD CONVERGED ON THE CAPITOL BUILDING HIGH ATOP AN OCEANSIDE BLUFF CHEERED THE POPULIST RHETORIC BUT LA MARCHA DE LAS HABICHUELAS THE MARCH FOR THE BEANS ON THE DINNER TABLE WAS MORE THAN JUST A SPONTANEOUS OUTPOURING FROM PUERTO RICO'S WORKING PEOPLE IT WAS A KEY PART OF A MULTILAYER MULTIMILLIONDOLLAR LOBBYING CAMPAIGN UNDERWRITTEN BY GIANT US PHARMACEUTICAL COMPANIES AND OTHER FIRMS WITH FACTORIES HERE THE BUSINESS COMMUNITY POURED MORE THAN 150000 INTO ORGANIZING LA MARCHA ITSELF AMERICAN CYANAMID CO HAD BUSES HAUL EMPLOYEES TO THE EVENT AT SCHERINGPLOUGH CORP'S FACTORY IN MANATI A SIGN NEAR THE CAFETERIA ENCOURAGED WORKERS TO TURN OUT BRISTOLMYERS SQUIBB CO AMONG OTHERS THREATENED TO STOP INVESTING IN PUERTO RICO UNLESS THE TAX BREAK WAS SPARED AND A CONFIDENTIAL MEMO FROM THE PUERTO RICO BANKERS ASSOCIATION URGED BRANCHES ACROSS THE ISLAND TO ISSUE AN OFFICIAL EXHORTATION TO YOUR EMPLOYEES SO THEY GO TO LA MARCHA NOTING THAT AN ACTIVITY OF THIS TYPE WITH MUCH PARTICIPATION WILL HAVE A GREAT IMPACT AND IT DID EARLY IN HIS PRESIDENCY BILL CLINTON SINGLED OUT THE DRUG FIRMS AS ENEMIES OF THE PUBLIC MAKING THEM AN EARLY TEST OF HIS PROMISE TO BREAK THE STRANGLEHOLD THE LOBBYISTS HAVE ON OUR GOVERNMENT HIS POLITICAL ADVISERS TOLD HIM THE DRUG COMPANIES WERE A POPULAR TARGET AND THE PRESIDENT ACCUSED THEM OF GARNERING PROFITS AT THE EXPENSE OF OUR CHILDREN AT THE SAME TIME HIS ECONOMIC ADVISERS CALLED FOR A RADICAL REVISION OF THE PUERTO RICAN TAX BREAK WIDELY VIEWED AS ONE OF THE MOST INEFFICIENT PROVISIONS IN THE US TAX CODE IT WAS ORIGINALLY INTENDED TO ENCOURAGE JOB CREATION IN THE COMMONWEALTH BUT HAD EVOLVED INTO AN EXAMPLE OF CORPORATE WELFARE AT ITS WORST PROVIDING DRUG COMPANIES IN PARTICULAR A TAXPAYER SUBSIDY SEVERAL TIMES LARGER THAN THE TOTAL WAGES THEY PAY IN PUERTO RICO BUT IN THE END DESPITE THE FACT THAT THEY WERE THE FIRST AND AN ESPECIALLY VULNERABLE TARGET OF THE NEW PRESIDENT'S DESIRE TO CHANGE WASHINGTON THE DRUG COMPANIES ESCAPED WITH MUCH OF THEIR COVETED TAX BREAK INTACT MR CLINTON WAS FORCED TO SCALE BACK HIS PROPOSAL SO THAT IT RAISED A LITTLE MORE THAN HALF THE REVENUE HE HAD ORIGINALLY COUNTED ON MORE IMPORTANT THE DRUG COMPANIES MANAGED TO PRESERVE AT LEAST IN PART THE VERY FORM OF THE CREDIT THAT HIS ADVISERS INSISTED WAS INDEFENSIBLE A CREDIT THAT REWARDS US COMPANIES IN PUERTO RICO FOR THE PROFITS THEY EARN RATHER THAN FOR THE JOBS THEY CREATE THE SAGA OF THE PUERTO RICAN TAX CREDIT SHOWS HOW A WEB OF INTEREST GROUPS MANEUVERS TO PROTECT EVEN THE MOST ILLCONCEIVED OF GOVERNMENT PROGRAMS LIKE ALL BENEFIT PROGRAMS IT GENERATED FERVENT SUPPORT AMONG THOSE WHO ENJOY ITS LARGESS OVER TIME THE CREDIT HAD BECOME IMPORTANT TO THE COMPANIES' BOTTOM LINES AND VITAL TO PUERTO RICO'S ECONOMY THE CREDIT IS HEROIN IT'S OFTEN SAID AND PUERTO RICO IS HOOKED THE CLINTON ADMINISTRATION WORKED TO DEVISE A REPLACEMENT THAT IT ARGUED WOULD DO MORE TO ENCOURAGE JOB CREATION IN PUERTO RICO WHILE ELIMINATING THE BIG WINDFALL TO DRUG COMPANIES UNDER THE ARRANGEMENT THAT WAS IN PLACE COMPANIES WERE ALLOWED TO AVOID PAYING TAXES ON THE INCOME THEY EARNED IN PUERTO RICO AND ON THE INTEREST EARNED WHEN THOSE PROFITS WERE DEPOSITED WITH THE ISLAND'S BANKS MR CLINTON WANTED A NEW CREDIT WHOSE VALUE WAS SOLELY BASED ON THE WAGES COMPANIES PAID TO THEIR EMPLOYEES IN PUERTO RICO THE FINAL RESOLUTION ESTABLISHED A WAGEBASED FORMULA BUT BY SUCCESSFULLY CONFUSING AND COMMINGLING THEIR OWN INTERESTS WITH THOSE OF THE PUERTO RICAN WORKERS THE DRUG COMPANIES PRESERVED THE OPTION OF CLAIMING A CREDIT BASED ON THEIR PROFITS IT WASN'T A TOTAL VICTORY FOR THEM TO BE SURE THE PROFITSBASED BREAK IS LIMITED TO 60 OF ITS PREVIOUS VALUE NEXT YEAR AND FALLS TO 40 BY THE END OF FIVE YEARS BUT GIVEN WHERE THE CLINTON ADMINISTRATION STARTED THE DRUG INDUSTRY STAGED A REMARKABLE COMEBACK SAYS ALAN WILENSKY A FORMER TOP TREASURY TAX OFFICIAL THE DRUG COMPANIES' EFFORT WAS A CLASSIC WASHINGTON CAMPAIGN COMBINING HEAVY LOBBYING GENEROUS POLITICAL CONTRIBUTIONS AND THE AID OF A FEW KEY MEMBERS OF CONGRESS ESPECIALLY HELPFUL WERE SEN DANIEL PATRICK MOYNIHAN OF NEW YORK THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND A LONGTIME FRIEND OF PUERTO RICO AND SEN BILL BRADLEY OF NEW JERSEY WHOSE INTEREST IN REFORMING THE TAX CODE CAME INTO CONFLICT WITH THE INFLUENCE OF THE DRUG COMPANIES THOSE COMPANIES ARE MAJOR EMPLOYERS IN SEN BRADLEY'S STATE AND HAVE CONTRIBUTED GENEROUSLY TO HIS CAMPAIGNS THE COMPANIES ALSO HIRED OUTSIDE LOBBYISTS WITH GOOD CONNECTIONS INCLUDING FORMER REP BERYL ANTHONY OF ARKANSAS BUT A KEY TO THEIR SUCCESS APPEARS TO HAVE BEEN THEIR ABILITY TO ESCAPE THE ADMINISTRATION'S SPECIALINTEREST WRATH BY ENCOURAGING GRASSROOTS EFFORTS AMONG PUERTO RICANS IN PART THE PUERTO RICO GOVERNMENT AND MASSES OF PUERTO RICANS HERE AND ON THE MAINLAND BECAME A WILLING FRONT FOR SOME OF THE LARGEST CORPORATIONS IN THE COUNTRY WIDELY KNOWN BY ITS PLACE IN THE US TAX CODE SECTION 936 THE 17YEAROLD TAX CREDIT IS THE LATEST IN A LINE OF INCENTIVES DESIGNED TO ENHANCE THE DEVELOPMENT OF US POSSESSIONS DATING TO THE EARLY 1920S BUT FOR A RELATIVE HANDFUL OF COMPANIES THE CREDIT STANDS NOT JUST AS A BREAK BUT AS AN ABSOLUTE BONANZA THE GENERAL ACCOUNTING OFFICE CONGRESS'S INVESTIGATIVE ARM FOUND IN 1992 THAT PFIZER INC'S TAX SAVINGS AMOUNTED TO ABOUT 156400 PER WORKER OR SIX TIMES THE AVERAGE COMPENSATION AT ITS PUERTO RICAN OPERATIONS MERCK & CO'S TAX SAVINGS AMOUNTED TO 110493 PER EMPLOYEE OR MORE THAN FOUR TIMES THE AVERAGE COMPENSATION OTHER COMPANIES INCLUDING COCACOLA CO USE THE LUCRATIVE CREDIT BUT IT'S THE DRUG COMPANIES THAT REAP HALF THE BENEFITS THE DRUG FIRMS COUNTER THAT WHILE THEY PRODUCE RELATIVELY FEW JOBS THOSE POSITIONS TEND TO BE HIGHERTECH AND HIGHERPAYING WHAT WE CREATE IS JOBS FOR THE MIDDLECLASS COLLEGEEDUCATED KIDS AND THOSE ARE BETTER JOBS SAYS DAN NICHOLS SENIOR VICE PRESIDENT FOR TAXES AT SCHERINGPLOUGH IN MY VIEW WE ARE TRYING TO BUILD THE ECONOMY TO BUILD TO A HIGHER LEVEL OF JOB IN ADDITION HE SAYS HIS AND OTHER COMPANIES HAVE HUNDREDS OF MILLIONS INVESTED ON THE ISLAND THE COMPANIES ALSO PAY PUERTO RICAN TAXES DESPITE ALL THE CRITICISM THE TAX CREDIT AND ITS FORERUNNERS HAVE HELPED TRANSFORM THE COMMONWEALTH FROM A DIRTPOOR AGRARIAN SOCIETY TO A MORE THRIVING INDUSTRIAL ONE ANY COUNTRY IN THE WORLD WOULD LOVE TO HAVE A 936 SAYS ANTONIO COLORADO PUERTO RICO'S FORMER REPRESENTATIVE TO CONGRESS ANYWHERE FROM 200000 TO 300000 OF PUERTO RICO'S 900000 JOBS ARE TIED TO THE CREDIT THE ISLAND'S UNEMPLOYMENT RATE IS STUCK ABOVE 17 AND PERCAPITA INCOME IS HALF THAT OF MISSISSIPPI'S BUT THERE IS LITTLE DOUBT THAT EVISCERATING SECTION 936 COULD MAKE THINGS EVEN WORSE WE'RE IN A BOX SAYS LUIS DAVILACOLON A PUERTO RICAN POLITICAL ANALYST IN THE SCORES OF FACTORY TOWNS ACROSS THE ISLAND WHERE SECTION 936 PLANTS ARE LOCATED THE FEAR OF LOSING THE CREDIT IS PALPABLE BUMPER STICKERS HERE READ DEFIENDE LA 936 AT THE TREASURY DEPARTMENT WHICH HAS SCORNED THE CREDIT THROUGH REPUBLICAN AND DEMOCRATIC ADMINISTRATIONS ALIKE OFFICIALS ACKNOWLEDGE THAT SECTION 936 CAN'T BE COMPLETELY PULLED FROM PUERTO RICO OVERNIGHT AND PROBABLY OUGHT TO BE REPLACED WITH SOME OTHER FORM OF RELIEF IT'S NOT GOOD TAX POLICY SEN BRADLEY CONCEDES BUT DRAMATICALLY SHRINKING IT HE SAYS WOULD THROW PUERTO RICO INTO CHAOS INITIALLY SOME LOBBYISTS THOUGHT THEY MIGHT AVOID A FIGHT OVER THE TAX BREAK ALTOGETHER AT A 1992 MEETING IN SAN JUAN ON THE DAY AFTER THANKSGIVING BUSINESS LOBBYISTS FROM THE WASHINGTONBASED PUERTO RICO USA FOUNDATION DISMISSED WARNINGS FROM COMMONWEALTH OFFICIALS THAT 936 WOULD TAKE A BIG HIT IN THE COMING CLINTON BUDGET PRUSA OFFICIALS SAID THEIR OWN CONTACTS IN THE CLINTON CAMP TOLD THEM 936 WOULD LARGELY ESCAPE DO YOU WANT TO BET ASKED A LAWYER FOR THE GOVERNMENT SURE ENOUGH WHEN PRESIDENT CLINTON UNVEILED HIS BUDGET PACKAGE HE PROPOSED TO OVERHAUL SECTION 936 SEN DAVID PRYOR A FELLOW ARKANSAS DEMOCRAT AND LONG THE DRUG MAKERS' NEMESIS HAD ENCOURAGED MR CLINTON TO ATTACK THE CREDIT THE PRESIDENT SOUGHT TO PARE ITS VALUE BY 7 BILLION OVER FIVE YEARS NEARLY HALF THE VALUE OF THE CREDIT DURING THAT PERIOD AND TO REPLACE IT WITH THE WAGEBASED APPROACH STILL MANY LOBBYISTS THOUGHT THEIR FRIENDS IN CONGRESS WOULD NEVER GO ALONG WITH THE CLINTON PLAN AT THE HOUSE WAYS AND MEANS COMMITTEE THE TAX PROPOSAL'S FIRST STOP NEW YORK REP CHARLES RANGEL HAD BEEN THE PROVISION'S LONGTIME PROTECTOR IN GRATITUDE SUPPORTERS FROM 936 COMPANIES HAD FORMED AMIGOS DE CHARLIE FETING REP RANGEL AND HIS WIFE ALMA AND CONTRIBUTING TENS OF THOUSANDS OF DOLLARS TO HIS CAMPAIGNS BUT THIS YEAR THE HARLEM DEMOCRAT HAD OTHER PRIORITIES SUCH AS TAXFAVORED ENTERPRISE ZONES FOR INNER CITIES ON 936 HE NOW DEFERRED TO PUERTO RICO'S OWN NEWLY ELECTED REPRESENTATIVE CARLOS ROMEROBARCELO AND MR ROMEROBARCELO WAS ARDENTLY ANTI936 A STAUNCH MEMBER OF THE PROSTATEHOOD NEW PROGRESSIVE PARTY HE SAW THE CREDIT AS A VESTIGE OF COLONIALISM STANDING IN THE WAY OF HIS DREAM OF PUERTO RICO'S BECOMING THE 51ST STATE MEETING WITH REP RANGEL WHO IS BLACK MR ROMEROBARCELO WAS BLUNT STATEHOOD IS TO ME WHAT CIVIL RIGHTS IS TO YOU WHEN THE WAYS AND MEANS PANEL AND THEN THE FULL HOUSE PASSED MR CLINTON'S BUDGET IN MAY WITH HIS 936 PROVISION INTACT AN ALARM SOUNDED AMONG THE LOBBYISTS IT WAS CLEAR THAT THEIR LAST CHANCE WOULD BE WITH THE SENATE FINANCE COMMITTEE BUT JUST WHEN THE LOBBYISTS NEEDED A UNITED FRONT THEIR RANKS SPLIT LABORINTENSIVE COMPANIES SUCH AS WESTINGHOUSE ELECTRIC CORP AND GENERAL ELECTRIC CO WERE PREPARED TO SETTLE FOR A WAGEBASED CREDIT BETTER THAT THAN RISK THE ENTIRE BENEFIT JUST BECAUSE THE CAPITALINTENSIVE DRUG COMPANIES INSISTED ON THE MORE CONTROVERSIAL PROFITSBASED CREDIT THE TWO SIDES CONTINUED TO WORK TOGETHER UNDER PRUSA'S UMBRELLA BUT RELATIONS WERE STRAINED IN MEETINGS AT PRUSA'S OFFICE CATHERINE BENNETT OF PFIZER MORE THAN ONCE ERUPTED ABOUT THE TREACHERY OF GE ALLERGAN INC AND OTHER LABORINTENSIVE COMPANIES ACCORDING TO PARTICIPANTS AS THE DEBATE PROGRESSED PUERTO RICO NOT THE CORPORATIONS BECAME THE MORE SYMPATHETIC FOCUS FOR THE COMPANIES THAT WASN'T ACCIDENTAL WE WERE GENERALLY PERCEIVED AS BEING THE BAD GUYS ACKNOWLEDGES MR NICHOLS AT SCHERINGPLOUGH THE MOST IMPORTANT PLAYER IN TRYING TO SAVE 936 HAD TO BE THE PUERTO RICAN GOVERNMENT THOUGH MANY IN HIS STATEHOOD PARTY ABHOR THE CREDIT GOV PEDRO ROSSELLO HAD VOWED IN HIS CAMPAIGN TO DEFEND IT SO LONG AS PUERTO RICO WAS A COMMONWEALTH AT FIRST GOV ROSSELLO TOOK A COMPROMISE OFFER TO PRESIDENT CLINTON IN MARCH THAT INCLUDED ONLY A WAGEBASED CREDIT WE'RE NOT HERE FOR THE PHARMACEUTICALS HE ASSURED MR CLINTON BUT THE TREASURY DEPARTMENT DISMISSED HIS OVERTURE SO BACK IN SAN JUAN WITH CORPORATE PRESSURE BUILDING THE GOVERNOR DECIDED TO MAKE PEACE WITH THE COMPANIES INSTEAD PRUSA'S MAIN LOBBYISTS PETER HOLMES AND CARL NORDBERG BROUGHT TOP CORPORATE EXECUTIVES TO SAN JUAN TO APPEAL TO GOV ROSSELLO AND HIS STAFF TO REVERSE POSITIONS AND SUPPORT A PROFITSBASED CREDIT AS WELL BY APRIL HE HAD DONE SO THE TURNABOUT WASN'T UNNATURAL GOV ROSSELLO HAD SURROUNDED HIMSELF WITH A GROUP OF ADVISERS WITH CLOSE TIES TO THE BUSINESS WORLD YOU LOOK AROUND AND IT'S A GROUP OF YOUNG TURKS FROM THE PRIVATE SECTOR SAYS CHIEF OF STAFF ALVARO CIFUENTES SEVERAL BIG MAINLAND COMPANIES INCLUDING SCHERINGPLOUGH AND ELI LILLY & CO HAD GIVEN TO GOV ROSSELLO'S CAMPAIGN EVENTUALLY THE GOVERNOR'S OWN LOBBYING FORCES FORMED AN UNEASY ALLIANCE WITH THE COMPANIES REPRESENTING PUERTO RICO WAS THE WASHINGTON LOBBYING FIRM OF VERNER LIIPFERT BERNHARD MCPHERSON AND HAND WHICH RECEIVED A 50000AMONTH RETAINER AND THE FLEISHMAN HILLARD PUBLICRELATIONS FIRM THERE WAS ALSO NEW YORK LAWYER HAROLD ICKES A LONGTIME FRIEND OF BILL AND HILLARY CLINTON WHOSE FIRM GOT A QUARTERLY RETAINER OF 40000 IN APRIL BY THEN THE CORPORATE COMMUNITY WAS BUSILY WORKING TO SHOW THAT THE PUERTO RICAN PEOPLE WERE ON ITS SIDE BOTH ON THE ISLAND AND THE MAINLAND ON CAPITOL HILL LA MARCHA WAS REPLAYED IN CONGRESSIONAL OFFICES THANKS TO LOBBYISTS ARMED WITH A SIXMINUTE VIDEO PREPARED FOR THE PUERTO RICAN MANUFACTURERS ASSOCIATION LEADERS OF THE PRO936 PUERTO RICO PRIVATESECTOR COALITION TRAVELED TO THE STATES SEEKING TO IGNITE THE SAME FERVOR IN THE STREETS OF NEW YORK AND CHICAGO WE KNEW THAT THE LANGUAGE THAT THE MEMBERS OF CONGRESS UNDERSTAND IS THEIR CONSTITUENTS' SAYS ARTURO CARRION EXECUTIVE VICE PRESIDENT OF THE ISLAND'S BANKERS ASSOCIATION WHO LED THE EFFORT ALONG WITH THE EXECUTIVE VICE PRESIDENT OF THE MANUFACTURERS ASSOCIATION HECTOR JIMENEZ JUARBE THEY SIGNED RIVERA & RIVERA COMMUNICATIONS A NEW YORK PUBLICRELATIONS FIRM MR CARRION SAYS THEIR COALITION SPENT PERHAPS 200000 THOUGH HE DIDN'T PROVIDE DETAILS THEIR FOCUS WAS NEW YORK'S ANNUAL PUERTO RICAN DAY PARADE WHICH DRAWS NEARLY TWO MILLION PEOPLE IT CAME ON JUNE 13 JUST FOUR DAYS BEFORE THE FINANCE PANEL BEGAN ITS WORK WE WERE ABLE TO CONVINCE THE LEADERSHIP OF THE PUERTO RICAN PARADE THAT THEY SHOULD DEVOTE AS MUCH EFFORT AS POSSIBLE TO THE 936 EFFORT BOASTS MR CARRION BUT PARADE ORGANIZERS WITHHELD AN OFFICIAL ENDORSEMENT YOU GUYS CAN'T BUY THE PARADE MANUEL MIRABAL THE PARADE PRESIDENT TOLD THEM AT THE SAME TIME A SEPARATE COALITION PROS936 TOOK ROOT IN NEW YORK WITH FINANCING ORGANIZERS SAY WITHOUT ELABORATION FROM THE MAINLAND OFFICES OF PHARMACEUTICALS AND OTHER 936 BENEFICIARIES THE PRINCIPALS INCLUDED TONIO BURGOS A LOBBYIST WHOSE CLIENTS INCLUDE PFIZER AND GERSON BORRERO A LOCAL MEDIA PERSONALITY AND PUERTO RICAN ACTIVIST MR BORRERO WHO BECAME A PAID CONSULTANT ESTIMATES THAT MAYBE A HALF MILLION DOLLARS WERE SPENT THIS GROUP CONTRACTED WITH ANOTHER PROMINENT PUERTO RICAN PR FIRM IN NEW YORK ROBLES COMMUNICATIONS AND AREA ACTIVISTS AND CONSULTANTS JOSE SOSA A REPUBLICAN POLITICIAN IN NEW JERSEY AND A CONSULTANT TO JOHNSON & JOHNSON ORGANIZED SUPPORT FROM LOCAL ELECTED OFFICIALS IN NEW JERSEY AND NEW YORK WHO IN TURN LOBBIED THEIR MEMBERS OF CONGRESS PROS936 ALSO CONTRACTED WITH PUERTO RICANS IN CHICAGO AND LIKEWISE CONCENTRATED ON MAKING THAT CITY'S PUERTO RICAN DAY PARADE IN LATE MAY A VIRTUAL LA MARCHA STREET FIGHT THE MOBILIZATION HAD ALMOST COMIC MOMENTS AT NEW YORK'S PARADE THE TWO PR FIRMS VIED OVER THE SIDEWALKS TO GATHER PETITIONS THEY WERE FIGHTING OVER WHO HAD WHICH SIDE OF THE STREET SAYS MR MIRABAL BUT FOR GOOD REASON PARADE PRINCIPALS REPORT THAT THE FIRMS WERE BEING PAID BY THE NUMBER OF SIGNATURES THEY SECURED REPEATED CALLS TO ROBLES AND TO RIVERA FOR COMMENT WEREN'T RETURNED IN THE END THE NEW YORK EFFORT PRODUCED ABOUT 400000 SIGNATURES ON CARDS AND PETITIONS AND CHICAGOANS SENT 50000 MORE THERE WERE COMMUNITY FORUMS PHONE BANKS AND ADS ON SPANISHLANGUAGE RADIO STATIONS THAT EVEN BROUGHT TEARS TO MY EYES SAYS NEW YORK REP JOSE SERRANO A PUERTO RICAN FROM THE BRONX THEY SOWED FEAR THE RALLIES HELPED GALVANIZE HISPANIC REPRESENTATIVES IN CONGRESS WHOSE VOTES WERE CRUCIAL TO THE HAIR'SBREADTH PASSAGE OF MR CLINTON'S OVERALL ECONOMIC PROGRAM IN THE WEEK BEFORE THE NEW YORK PARADE REP SERRANO AND HIS FELLOW DEMOCRATS OF PUERTO RICAN DESCENT REPS NYDIA VELAZQUEZ OF BROOKLYN AND LUIS GUTIERREZ OF CHICAGO HAD TAKEN THE EXTRAORDINARY STEP OF SEEKING A MEETING WITH THE PRESIDENT THAT VERY DAY TO DEFEND 936 THE MESSAGE WAS CLEAR WHEN THE FINAL BUDGET RETURNED ULTIMATELY FROM A HOUSESENATE CONFERENCE THE TRIO COULDN'T BE COUNTED ON AGAIN UNLESS SECTION 936 WAS RESCUED WE LEFT THAT MEETING WITH A FEELING THAT HE WOULD DO SOMETHING REP VELAZQUEZ RECALLS WHEN THE SENATE FINANCE COMMITTEE MET JUNE 17 ADMINISTRATION OFFICIALS ALREADY WERE RESIGNED TO RAISING LESS REVENUE FROM 936 BEYOND THE HISPANICS' APPEALS THE WHITE HOUSE KNEW IT WOULD HAVE TO PLEASE CHAIRMAN MOYNIHAN AND HE SIDED WITH PUERTO RICO THE SENATOR'S DEFERENCE TO THE US COMMONWEALTH GOES BACK NEARLY TWO DECADES TO HIS DAYS AS AMBASSADOR TO THE UNITED NATIONS WHEN HE HAD TO PARRY BARBS ABOUT AMERICA'S COLONY BY NOTING THAT PUERTO RICO WAS FREE TO DECIDE ITS STATUS WITH A REFERENDUM ON THAT VERY ISSUE LOOMING AT YEAR'S END THE SENATOR FRETTED THAT RADICALLY ALTERING 936 WOULD SKEW THE RESULTS BEYOND THAT THE NEW YORKER'S STATE IS HOME TO MORE THAN A MILLION PUERTO RICANS AND A NUMBER OF TOP 936 FIRMS SEN MOYNIHAN WHO IS UP FOR REELECTION IN 1994 HAS ACCEPTED 52402 FROM PRUSA COMPANIES OVER THE 199192 ELECTION CYCLE AND THE FIRST SIX MONTHS OF THIS YEAR ACCORDING TO AN ANALYSIS BY THE CENTER FOR RESPONSIVE POLITICS SEN MOYNIHAN ARGUED FROM THE START THAT MR CLINTON'S 7 BILLION HIT TO THE TAX CREDIT WAS TOO HARSH AND DIRECTED HIS STAFF TO DRAFT AN ALTERNATIVE THAT RAISED LESS THAN 4 BILLION BUT IF THE OVERALL FIGURE WAS VIRTUALLY SETTLED BY THE TIME THE FINANCE COMMITTEE MET THE CRITICAL DETAILS OF THE CREDIT WERE NOT WHILE LOBBYISTS MANEUVERED TO KEEP THE INCOMEBASED CREDIT SENATE STAFFERS PREPARED OPTIONS TIED TO COMPANIES' HIRING THE EXISTING INCOME CREDIT WOULD BE PHASED OUT SEN BRADLEY HOWEVER INSISTED IT SURVIVE TYPICALLY THE SENATE'S PREEMINENT TAX REFORMER HE HIMSELF HAD PROPOSED TO ELIMINATE 936 A DECADE AGO IN HIS FAIR TAX BLUEPRINT THAT WAS THE BASIS FOR THE LANDMARK 1986 TAXCODE OVERHAUL IN THE INTERIM SEN BRADLEY WAS NEARLY DEFEATED FOR REELECTION IN 1990 PHARMACEUTICAL COMPANIES ARE NOT ONLY A TOP EMPLOYER IN NEW JERSEY BUT THE INDUSTRY GAVE 108760 TO SEN BRADLEY'S 1990 CAMPAIGN THE MOST GIVEN TO ANY MEMBER OF CONGRESS ACCORDING TO THE CENTER FOR RESPONSIVE POLITICS THE ISSUE OF A WAGE CREDIT VS THE INCOME CREDIT CAME TO A HEAD THE NIGHT BEFORE THE FINANCE PANEL MET SEN BRADLEY'S AIDE FACED OFF AGAINST AIDES FOR THE TREASURY CONGRESS'S JOINT TAX COMMITTEE SEN PRYOR AND SEN MOYNIHAN VISIBLY PAINED THE BRADLEY AIDE SOUGHT TO JUSTIFY THE INCOMECREDIT ON POLICY GROUNDS THEN ADDED I JUST CAN'T AGREE TO LET GO OF THE INCOME CREDIT IT'S IMPORTANT TO NEW JERSEY WITH THE BATTLE AT ITS CLIMAX FOUR DRUG MAKERS WITH THE MOST TO LOSE PFIZER MERCK AMERICAN HOME PRODUCTS AND BRISTOLMYERS SQUIBB PAID UPWARD OF 400000 TO THE LAW FIRM OF WINSTON & STRAWN SO THEY COULD ADD FORMER REP ANTHONY TO THEIR LOBBYING RANKS HE WOULD TRY TO GET HIS FELLOW ARKANSANS IN THE WHITE HOUSE AND SEN PRYOR TO YIELD MR ANTHONY REFUSES TO DISCUSS HIS RETAINER HE ACKNOWLEDGES THAT HE CALLED WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY AND THAT HE MENTIONED SEN PRYOR BUT NOT IN ANY MEANINGFUL WAY BY LAW MR ANTHONY COULDN'T LOBBY THE SENATOR BECAUSE MR ANTHONY HADN'T BEEN OUT OF CONGRESS FOR A YEAR OTHERS SAY HOWEVER THAT MR MCLARTY CALLED SEN PRYOR ON THE MORNING THE FINANCE PANEL MET URGING HIM TO COMPROMISE WITH SEN BRADLEY ON A MIX OF INCOME AND WAGE CREDITS A SPOKESMAN FOR MR MCLARTY BILL BURTON SAYS THAT THE CHIEF OF STAFF RECALLS TALKING ABOUT 936 TO SEN PRYOR AND OTHER MEMBERS OF THE FINANCE PANEL NOT BECAUSE OF MR ANTHONY BUT BECAUSE BOTH THE PRESIDENT AND SEN MOYNIHAN WERE INTERESTED IN SEEING THE ISSUE RESOLVED SEN PRYOR SAYS ONLY THAT THE WHITE HOUSE THOUGHT WE'D DONE ABOUT AS GOOD AS WE COULD DO THE COMMITTEE'S COMPROMISE WHICH WAS THE VERSION THAT ULTIMATELY BECAME LAW WOULD RAISE 38 BILLION OVER FIVE YEARS AND GIVE COMPANIES A CHOICE BETWEEN TWO TYPES OF CREDITS THERE IS A MISCONCEPTION ON THE PART OF A LOT OF FOLKS THAT WE SOMEHOW WON SAYS SCHERINGPLOUGH'S MR NICHOLS THIS IS NOT A VICTORY BUT SEN PRYOR DISAGREES THE DRUG COMPANIES HE SAYS STILL HAVE AN EXTREMELY LUCRATIVE BENEFIT NOT ENJOYED BY COMPANIES ANYWHERE ELSE HE VOWS TO TAKE THEM ON AGAIN AS EARLY AS NEXT YEAR SEE RELATED LETTERS LETTERS TO THE EDITOR GIANTS IN PUERTO RICO TWO VIEWS WSJ FEB 4 1994 9312210089 YY94 MM02 9402030029 931227 REVIEW & OUTLOOK EDITORIAL A SNAIL RETREAT THE BRUNEAU HOT SPRINGS SNAIL IS ONLY ABOUT AS BIG AS ONE OF THE SMALLER LETTERS IN THIS SENTENCE BUT IT'S AT THE CENTER OF A GIANT BATTLE OVER THE ENDANGERED SPECIES ACT ALTHOUGH THE TINY IDAHO SNAIL CAN ONLY BE DISTINGUISHED FROM OTHER SNAILS BECAUSE OF ITS UNUSUALLY LARGE SEXUAL ORGAN WE'VE NOTED HOW IT HAD THREATENED TO SHUT DOWN THE ECONOMY OF IDAHO'S BRUNEAU VALLEY THE EMOTIONAL SPECIES ACT NOVEMBER 2 1993 THEN THIS MONTH FEDERAL JUDGE HAROLD RYAN REMOVED IT FROM THE ENDANGERED SPECIES LIST HE CRITICIZED THE US FISH AND WILDLIFE SERVICE FOR WITHHOLDING SCIENTIFIC DATA FROM THE PUBLIC AND SAID ITS BEHAVIOR REPRESENTED SELFSERVING AND SUPERFICIAL RESPONSES FROM AN AGENCY THAT HAD ALREADY MADE UP ITS MIND EVEN INTERIOR SECRETARY BRUCE BABBITT A FERVENT ENVIRONMENTALIST SEEMS TO BE HAVING SECOND THOUGHTS ABOUT THE BRUNEAU SNAIL IN A VISIT TO IDAHO LAST WEEK HE SAID THERE MAY BE NO NEED TO RELIST THE SNAIL IF THE STATE GOVERNMENT WILL BETTER MAINTAIN THE WATER LEVEL IN THE 126 HOT SPRINGS THE PINHEAD SNAIL IS KNOWN TO OCCUPY HE SAID THAT MACHO ARMWRESTLING BETWEEN STATE AND FEDERAL OFFICIALS LED TO THE SNAIL'S LISTING I THINK THERE IS A LOT LESS THAN MEETS THE EYE HE JOKED TO RANCHERS SO IT LOOKS AS IF THE 100 OR SO RANCHERS IN THE BRUNEAU VALLEY MAY SURVIVE AFTER ALL BUT THEIR BATTLE DREW OUR ATTENTION ONCE AGAIN TO HOW THE ENDANGERED SPECIES ACT IS MISUSED BY EXTREMISTS TO HALT UNWANTED DEVELOPMENT AND RESTRICT PRIVATE PROPERTY BRANDT CHILD A PROPERTY OWNER IN NEIGHBORING UTAH HAS HIS OWN SNAIL PROBLEM WHICH HE SAYS HAS RENDERED HIS 500ACRE DESERT OASIS USELESS HE BOUGHT IT IN 1990 PLANNING TO BUILD A CAMPGROUND AND GOLF COURSE NEAR ITS THREE LAKES THE NEXT YEAR THE FISH AND WILDLIFE SERVICE TOLD HIM HE COULDN'T USE HIS PROPERTY BECAUSE THE LAKES WERE INHABITED BY SOME 200000 THUMBNAILSIZED KANAB AMBERSNAILS WHICH DIFFER FROM OTHER SNAILS ONLY BECAUSE OF THEIR GOLDEN COLOR A FEW MONTHS LATER MR CHILD DISCOVERED THAT SOMEONE HAD ABANDONED 10 DOMESTIC GEESE NEAR HIS PONDS HE DUTIFULLY NOTIFIED FEDERAL OFFICIALS WHO TOLD HIM THAT IF THE GEESE HAD EATEN ANY SNAILS HE FACED A FINE OF 50000 PER SNAIL A STATE WILDLIFE AGENT AND A HIGHWAY PATROLMEN ARRIVED ON HIS PROPERTY WITH A SHOTGUN THEY PLANNED TO SHOOT THE GEESE AND REMOVE THEIR STOMACHS TO FIND OUT HOW MANY SNAILS HAD BEEN EATEN THEY WERE FOILED BY JEANNIE HUNT A REPORTER FOR THE SOUTHERN UTAH NEWS WHO SHOWED UP TO TELL THEM SHE WOULD TAKE PICTURES OF THEIR MASSACRE THEY BACKED OFF SAYING IT WOULD BE BAD PR TO SEE THE AGENCY PORTRAYED AS KILLING INNOCENT GEESE TO SAVE SOME SNAILS MS HUNT TOLD US LEON COLBORN A FISH AND WILDLIFE BIOLOGIST JUSTIFIED THE ATTEMPT AT THE TIME I DON'T THINK WE COULD ASSESS HOW MANY SNAILS THEY HAVE EATEN UNLESS WE KILL THEM NONETHELESS THE GOVERNMENT SETTLED FOR FORCING THE GEESE TO VOMIT NO DEAD SNAILS WERE FOUND AND THE GEESE WERE REMOVED TO A WILDLIFE REFUGE THE GEESE MAY BE SAFE BUT MR CHILD SAYS HE'S OUT 25 MILLION BECAUSE HE CAN'T USE HIS PROPERTY THE NATURE CONSERVANCY HAS OFFERED TO BUY 300 ACRES FOR ABOUT HALF THE MARKET VALUE BUT A STUBBORN MR CHILD ISN'T GIVING UP HE'S PUT UP SIGNS WARNING LOCALS AWAY SNAILS AT WORK LAST MONTH THE MOUNTAIN STATES LEGAL FOUNDATION FILED A LAWSUIT CLAIMING THE GOVERNMENT HAS EFFECTIVELY TAKEN HIS PROPERTY WITHOUT COMPENSATION IT SURE SOUNDS LIKE IT WHEN PRESIDENT RICHARD NIXON SIGNED THE SPECIES ACT INTO LAW IN 1973 IT WAS PRIMARILY INTENDED TO PROTECT THREATENED BEARS EAGLES AND WOLVES COURT RULINGS AND BUREAUCRATS HAVE EXPANDED ITS SCOPE TO INCLUDE NEARLY EVERYTHING BIGGER THAN A MICROBE INCLUDING MANY VARIETIES OF BEETLES AND RATS THE LIST OF ENDANGERED SPECIES NOW TOPS 800 ANOTHER 4000 SPECIES ARE NOMINEES FOR THE LIST AT THIS RATE THERE WILL SOON BE ONLY ONE SPECIES THAT WILL HAVE NO PROTECTION AT ALL HUMAN PROPERTY OWNER SEE RELATED LETTER LETTERS TO THE EDITOR NEXTDOOR NEIGHBORS TO NOWFAMOUS SNAILS WSJ JAN 13 1993 SEE RELATED LETTER LETTERS TO THE EDITOR IS ENDANGERED' SNAIL REALLY AN ILLEGAL ALIEN WSJ FEB 3 1994 9312270011 9401130098 YY94 MM01 YY94 MM02 9402030143 931126 CURRENCY WAVES GLOBAL MONEY TRENDS RATTLE SHOP WINDOWS IN HEARTLAND AMERICA RESIDENTS OF TROY OHIO FIND LIFE IS COSTLY COMPLEX WHEN THE YEN IS STRONG ROBOTS THAT ATE THE PROFITS BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL TROY OHIO WHEN THE DOLLAR DROPS AGAINST THE YEN AS IT HAS BY ABOUT 15 SINCE THE FIRST OF THE YEAR SHOPPERS FEEL IT IN AMERICA'S HEARTLAND AT HARRIS JEWELRY STORE HERE THE SAME 18INCH STRAND OF CULTURED PEARLS THAT WAS A STANDARD WEDDING GIFT AT 899 A FEW YEARS AGO IS NOW OUT OF THE REACH OF MANY AT 3000 NIKON CAMERA PRICES HAVE SHOT UP TWICE ALREADY THIS YEAR AT THE BK PHOTO PRODUCTS SHOP ACROSS THE STREET AND PRICES ON A SHARP COPIER AT TROJAN BUSINESS MACHINES RICOCHETED THREE TIMES IN ONE WEEK AS THE JAPANESE ELECTRONICS MAKER ADJUSTED COSTS TO REFLECT THE STRONGER YEN WE DEFINITELY SEE THE EFFECTS SAYS STORE COOWNER DEBBIE ENOCH THAT TROY A CITY OF ABOUT 19000 TUCKED AWAY IN SOUTHWESTERN OHIO SHOULD FEEL THE GYRATIONS OF FARAWAY CURRENCY TRADES IS EMBLEMATIC OF THE REACH OF THE GLOBAL ECONOMY SWINGS AND AMERICAN FLAGS HANG FROM INVITING PORCHES MOMANDPOP STORES LINE MAIN STREET AND LEE'S FAMILY RESTAURANT PROMOTES A 199 CHICKENGIZZARD DINNER AND IN A PLACE WHERE WELCOME SIGNS BOAST THAT CIVIC PRIDE IS CITY WIDE FEW RESIDENTS KNOW THE YENDOLLAR EXCHANGE RATE INDEED A FEW AREN'T CERTAIN WHOSE CURRENCY THE YEN IS BUT KNOWLEDGEABLE OR NOT THEY ARE FEELING THE PINCH BECAUSE THE FEWER YEN A DOLLAR IS WORTH THE MORE DOLLARS IT TAKES TO PAY FOR A PRODUCT IMPORTED FROM A YENBASED ECONOMY JIM WITMER A TROY PHOTOGRAPHER HAS RESORTED TO BUYING USED LENSES SINCE PRICES ON JAPANESE CAMERA EQUIPMENT HAVE RISEN SO STEEPLY CONSIDER A NEW NIKON 300MILLIMETER LENS AT BK PHOTO ITS PRICE HAS SOARED TO ABOUT 1000 IN RECENT WEEKS THOUGH MR WITMER CONSIDERED IT EXPENSIVE AT THE 750 IT WAS FETCHING AT THE BEGINNING OF THE YEAR I FEEL SORRY FOR STUDENTS JUST STARTING OUT WHO NEED TO BUY EQUIPMENT HE SAYS FOR CAR SHOPPERS JAPANESE MODELS THESE DAYS AVERAGE ABOUT 2000 MORE THAN COMPARABLY EQUIPPED AMERICAN CARS EVEN THOUGH THE JAPANESE ARE TRYING TO TEMPER PRICE INCREASES BY CUTTING COSTS AND MOVING SOME MANUFACTURING OPERATIONS TO THE US THE GREATER EFFECT OF THE CURRENCY GYRATIONS HOWEVER IS ON BUSINESSES TROY'S TOP EXECUTIVES WHO CLOSELY MONITOR CURRENCY RATES SAY THE DOLLAR'S WEAKNESS VS THE YEN IS A MIXED BAG FOR MANUFACTURERS WHO SELL ABROAD A WEAK DOLLAR HELPS OUT BY MAKING THEIR PRODUCTS MORE AFFORDABLE FOR FOREIGNERS WHO WIELD STRONG CURRENCIES BUT TO US BUSINESSES THAT IMPORT MORE FROM JAPAN THAN THEY EXPORT A WEAK DOLLAR SIMPLY MAKES WHAT THEY HAVE TO BUY HARDER TO PAY FOR JUST ASK HOBART BROTHERS CO WHOSE 2000 EMPLOYEES MAKE ARCWELDING EQUIPMENT IN A DOWNTOWN FACTORY HOBART HAS BEEN HAMMERED BY THE YEN'S STRENGTH LARGELY BECAUSE OF A FOURYEAROLD JOINT VENTURE WITH JAPAN'S YASKAWA ELECTRIC AMERICA INC KNOWN AS MOTOMAN INC THE JOINT ENTITY BUYS ROBOTS FROM JAPAN THEN ADAPTS THEM FOR INDUSTRIAL APPLICATIONS IN A FACTORY IN NEARBY DAYTON THE JAPANESE ROBOTS BOUGHT BY THE VENTURE ARE THE BULK OF ITS COSTS BUT ROBOT PRICE INCREASES CAN'T EASILY BE PASSED ALONG TO INTOLERANT CONSUMERS WHO CAN EASILY SWITCH TO EUROPEAN AND AMERICAN COMPETITORS MAKING MATTERS MORE COMPLICATED FOR HOBART'S MOTOMAN ARE THE FLUCTUATIONS OF THE CURRENCY OF SWEDEN WHERE ITS EUROPEAN BUSINESS WAS BASED THE SWEDISH KRONA TOO HAS PLUMMETED AGAINST THE YEN THE FALL PRECIPITOUSLY BOOSTED THE COST OF MOTOMAN'S IMPORTED JAPANESE ROBOTS THERE AS WELL MOTOMAN WOUND UP SHEDDING THE SWEDISH ROBOTICS BUSINESS AS A RESULT THE KRONA WAS DEVALUING TO NO END AT THE TIME THE YEN WAS STRENGTHENING AGAINST EVERYTHING ELSE SO IT WAS A DOUBLE WHAMMY SAYS FRANK TRACY HOBART'S CHIEF FINANCIAL OFFICER ALTHOUGH THE DOLLAR'S WEAKNESS SHOULD MAKE AMERICAN PRODUCTS CHEAPER AND THUS MORE ATTRACTIVE TO THE JAPANESE THE EFFECT ISN'T ALWAYS FELT AT LEAST NOT IMMEDIATELY CONSIDER THE EXPERIENCE OF PMI FOOD EQUIPMENT GROUP IN TROY WHICH ANNUALLY EXPORTS 8 MILLION WORTH OF COMMERCIAL DISHWASHERS AND FOOD MIXERS TO JAPAN ITS JAPANESE DISTRIBUTOR HAS REDUCED PRICES ONLY SLIGHTLY TO CUSTOMERS FOR PMI EQUIPMENT THOUGH THE AMERICAN PRODUCTS NOW COST THE DISTRIBUTOR SUBSTANTIALLY LESS THIS IS A CASE WHERE THE DISTRIBUTOR TOOK ADVANTAGE SAYS JOE ARRIGO VICE PRESIDENT FOR PMI A DIVISION OF PREMARK INTERNATIONAL INC ALSO AVIDLY FOLLOWING THE YEN'S STRENGTH ARE PEOPLE LIKE KAY DEWEESE WHO FARMS 1300 ACRES WITH HER HUSBAND AND SON SOME OF THE CORN AND SOYBEANS THEY GROW ARE EXPORTED TO JAPAN MRS DEWEESE REGULARLY TRACKS COMMODITY PRICES AND CURRENCY RATES VIA A BACKYARD SATELLITE DISH WE KNOW THE DOLLAR HAS BEEN LOW AGAINST THE YEN WHICH NORMALLY MAKES OUR GRAIN CHEAPER MRS DEWEESE SAYS BUT SHE ALSO KNOWS THAT THE JAPANESE ARE HAVING TRAVAILS OF THEIR OWN INCLUDING A RECESSION AND A SHAKY STOCK MARKET WE WANT TO SEE A STRONG ENOUGH JAPANESE ECONOMY TO BE ABLE TO BUY OUR GRAIN SHE SAYS THE HEALTH OF THE JAPANESE ECONOMY ALSO CONCERNS MANY OTHER EXPORTDEPENDENT TROY BUSINESSES FOR EXAMPLE THE STRENGTH OF JAPANESE AIRLINE COMPANIES IS KEY TO BF GOODRICH CO WHICH EMPLOYS 700 HERE IT SELLS AIRCRAFT WHEELS BRAKES AND OTHER PARTS TO JAPAN AIRLINES AND ALL NIPPON AIRWAYS A REPRESENTATIVE OF THE JAPAN EXTERNAL TRADE ORGANIZATION JETRO RECENTLY WAS IN TOWN BEATING THE DRUM FOR AMERICAN EXPORTS TO JAPAN JETRO HAS 20 SUCH REPRESENTATIVES IN THE US ALL OF THEM DEDICATED TO EASING THE US TRADE DEFICIT WITH JAPAN WHICH CONTINUES TO WIDEN DESPITE THE YEN'S STRENGTH STATISTICS ARE SOBERING IN THE FIRST EIGHT MONTHS OF THIS YEAR THE DEFICIT WAS 369 BILLION COMPARED WITH 304 BILLION IN THE YEAREARLIER PERIOD AMERICAN PRODUCERS HAVE LONG COMPLAINED OF COURSE THAT AT LEAST PART OF THIS GAP REFLECTS HOW DIFFICULT THE JAPANESE MAKE IT FOR OUTSIDERS TO SELL IN CERTAIN MARKETS STILL 20 YEARS AGO I WAS TRYING TO EXPORT AMERICAN MACHINERY TO JAPAN WHEN THE EXCHANGE RATE WAS 360 YEN TO THE DOLLAR SAYS JETRO REPRESENTATIVE TSUNEO TAKAHASI RECALLING THE TIME HE WORKED FOR A JAPANESE TRADING HOUSE IN NEW YORK THAT STRONG DOLLAR MADE HIS TASK VERY DIFFICULT NOW ANY MANUFACTURER HERE IS IN A FAVORABLE POSITION THE ONLY PROBLEM IS GOING TO JAPAN ON A VISIT WHERE STAYING IS VERY EXPENSIVE TROY RELIES ON JAPANESE BUSINESS FOR MORE THAN JUST EXPORTS JAPANESE CORPORATIONS EMPLOY SEVERAL THOUSAND WORKERS HERE AT PLANTS ALONG INTERSTATE 75 AMERICAN MATSUSHITA ELECTRONICS CORP A UNIT OF JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL SOON WILL BOLSTER ITS WORK FORCE OF 600 EMPLOYEES WHO MAKE PICTURE TUBES FOR PANASONIC COLOR TELEVISION SETS HONDA MOTOR CO RUNS A PARTSDISTRIBUTION PLANT WHILE GOKOH CORP A MAKER OF CASTIRON AND ALUMINUM FOR AUTOMOBILE ENGINES EMPLOYS ABOUT TWO DOZEN AT A FOUNDRY MATERIAL SHOP GOKOH IS ONE OF NUMEROUS REGIONAL SUPPLIERS WHOSE BUSINESSES FEED HONDA'S ACCORD ASSEMBLY PLANT IN NEARBY MARYSVILLE OHIO THE WEAK DOLLAR ALSO COULD BE A BOON FOR RECRUITING MORE JAPANESE PLANTS TO TROY AND OTHER AMERICAN CITIES WITH THE STRONG YEN THE US BECOMES A MORE ATTRACTIVE PLACE TO MANUFACTURE ALREADY ABOUT 50 JAPANESE EXECUTIVES AND THEIR FAMILIES HAVE SETTLED IN TROY RESIDENTS HAVE ALSO CONDUCTED SEVERAL EXCHANGES WITH A JAPANESE SISTER CITY TAKAHASHI SUCH INFLUENCE IS APPARENT NOT ONLY IN THE JAPANESE WELCOME SIGN GRACING TROY'S TATTERED HOLIDAY INN THE WRITTEN DRIVER'SLICENSE EXAM IS OFFERED IN JAPANESE TO MAKE IT EASIER FOR EXECUTIVES AND THEIR WIVES TO TAKE THE TEST SOME AMERICAN WORKERS ARE AWARE OF THE GLOBAL LINKS MIKE HINES A FOREMAN IN PMI'S MIXERASSEMBLY AND SHIPPING PLANT KNOWS THAT AT 130 EACH DAY A TRUCK PICKS UP THE HANDASSEMBLED MIXERS SOME UP TO EIGHT FEET TALL TO BE EXPORTED TO PLACES SUCH AS JAPAN THE UNITED ARAB EMIRATES CHINA AND MALAYSIA AND TOMMY MOREHEAD WHO EARNS 1124 AN HOUR AS A QUALITY INSPECTOR AT PMI'S DISHWASHER PLANT KNOWS THAT IF THE COMPANY DIDN'T EXPORT 27 OF ITS WARES THERE'D BE A LOT FEWER JOBS PEOPLE THINK WE'RE SO BUCOLIC AND RUSTIC AND WE DON'T KNOW ANYTHING ABOUT EXPORTS BUT WE'VE BEEN EXPORTING SINCE BEFORE WORLD WAR II HE SAYS MANY OTHERS DON'T KNOW MUCH ABOUT THE MECHANICS OF GLOBAL TRADE AND EXCHANGE RATES YET THEY UNDERSTAND THAT DEMAND FOR JAPANESE PRODUCTS IS A FACTOR IN DRIVING UP THE VALUE OF THE YEN THE OTHER PRINCIPAL FACTOR BEING REAL INTEREST RATES TAKE MARK BAUGHMAN A HIGHWAY LABORER WHO STOPPED IN AT JOE JOHNSON CHEVROLET TO CHECK ON THE LONGDELAYED DELIVERY OF A PICKUP TRUCK HE HAD ORDERED IF PEOPLE BOUGHT AMERICAN PRODUCTS I DON'T THINK WE'D HAVE NEAR THE PROBLEMS WE HAVE TODAY AND THEN OUR MONEY WOULD MEAN SOMETHING HE SAYS THAT BUYAMERICAN SENTIMENT RUNS DEEP HERE IN OHIO DESPITE THE THOUSANDS OF OHIOANS WHO HAVE FOUND WORK WITH JAPANESE CORPORATIONS SAYS JEAN PEEPLES ON HER LUNCH BREAK FROM HER JOB AT HOBART BROTHERS IT'S NICE TO BE FRIENDS BUT WE DON'T HAVE TO BE BOSOM BUDDIES I THINK WE OUGHT TO KEEP OUR STUFF HERE AND THEY OUGHT TO KEEP THEIRS THERE BECAUSE ONE OF THESE DAYS ALL THEIR STUFF IS GOING TO BE HERE AND NONE OF OURS IS GOING TO BE THERE BUT JOE NEWMAN DOESN'T FEEL THAT WAY WHEN HE WAS WOUNDED IN THE KOREAN WAR HE BECAME AWARE OF THE YEN THEN 360 TO THE DOLLAR WHILE RECUPERATING AT A BASE IN YOKOSUKA JAPAN TODAY IN HIS JOB AS A PURCHASING AGENT FOR THE WRIGHT PATTERSON AIR FORCE BASE HE NEEDS TO KNOW EXCHANGE RATES FOR PURCHASES OF ELECTRONICS AND OTHER JAPANESE EQUIPMENT I THINK IT'S A GOOD THING TO BE AWARE OF SOMETIMES WE FAIL TO LOOK AROUND US AND JUST LIVE IN OUR OWN LITTLE COCOON SEE RELATED LETTER LETTERS TO THE EDITOR OUR ROBOTS COMPETE IN A DYNAMIC MARKET WSJ FEB 3 1994 9311260153 YY94 MM02 9402020183 931228 PRICING HEALTH CARE MAMMOGRAMS YOUR BREASTS YOUR CHOICE BY BERNADINE HEALY AS IF BY IMPERIAL EDICT THE CLINTON HEALTH SECURITY ACT HAS RULED OUT SCREENING MAMMOGRAPHY FOR WOMEN IN THEIR 40S IN THEIR SOCALLED COMPREHENSIVE BENEFITS PACKAGE WOMEN IN THIS AGE GROUP WOULD NO LONGER BE COVERED FOR THIS IMPORTANT TEST EVEN WOMEN OVER 50 WOULD BE COVERED ONLY EVERY TWO YEARS RATHER THAN ANNUALLY AS HIGHLY RECOMMENDED THE ADMINISTRATION'S MAMMOGRAPHY DICTATE IS AN EXAMPLE OF DRASTIC AND ARBITRARY GOVERNMENT INTRUSION INTO THE HEALTH CARE CHOICES PATIENTS AND DOCTORS MAKE EVERY DAY PRESIDENT CLINTON'S COMPREHENSIVE BENEFITS PACKAGE IS ACTUALLY A FAULTY ONESIZEFITSALL MEDICAL PRESCRIPTION WHEN COMBINED WITH GLOBAL BUDGETING THE NEW HEALTH CARE PLAN BECOMES A METHODOLOGY OF HEALTH CARE RATIONING UNDER THIS PLAN A WOMAN IS FORCED TO BUY SERVICES SHE MIGHT NOT WANT AND IS BEING DEPRIVED OF SERVICES SHE DOES WANT SUCH AS MAMMOGRAPHY UNLESS SHE IS ABLE TO COME UP WITH THE EXTRA AFTERTAX DOLLARS ON TOP OF THE ALREADY EXPENSIVE MANDATORY CLINTON HEALTH PREMIUM WHY NOT GIVE A WOMAN A FLEXIBLE BENEFITS PACKAGE OR MEDICAL SAVINGS ACCOUNT TO PRESERVE HER HEALTH CARE CHOICES THERE IS LITTLE CERTAINTY IN LIFE OR SCIENCE WITHOUT CERTAINTY BUT BASED ON CLINICAL STUDIES CONDUCTED OVER YEARS SCREENING MAMMOGRAPHY FOR WOMEN OVER 40 BECAME PART OF THE CATECHISM OF WOMEN'S HEALTH FOR THE EARLY DETECTION OF BREAST CANCER THE AGREEDUPON STANDARD SET BY THE AMERICAN CANCER SOCIETY THE NATIONAL CANCER INSTITUTE AND MOST OTHER INVOLVED MEDICAL GROUPS WAS MAMMOGRAPHY EVERY ONE TO TWO YEARS AFTER AGE 40 AND ANNUALLY AFTER AGE 50 FOR HIGHRISK WOMEN A BASELINE MAMMOGRAM IN THEIR MID30S OVER THE YEARS WE HAVE SEEN SOLID SCIENTIFIC SUPPORT FOR THE LIFESAVING POTENTIAL OF MAMMOGRAPHY IN WOMEN OVER 50 THE AGE RANGE IN WHICH MOST BREAST CANCER DEVELOPS ABOUT 20 OF BREAST CANCER VICTIMS HOWEVER ARE AFFLICTED BEFORE THEY REACH THAT AGE UNDER50 CANCERS ALTHOUGH LESS COMMON ARE OFTEN MORE AGGRESSIVE FOR YEARS THE NATIONAL CANCER INSTITUTE THE CANCER BRANCH OF THE NATIONAL INSTITUTES OF HEALTH HELPED WRITE AND STAUNCHLY RECOMMEND THE MEDICAL DOGMA ON MAMMOGRAPHY FOR WOMEN IN THEIR 40S UNTIL EARLIER THIS MONTH IT SPENT MILLIONS OF DOLLARS PROPAGATING THESE RECOMMENDATIONS TO THE PUBLIC IN BROCHURES PUBLICATIONS HOTLINES AND MEDIA EVENTS DESPITE A LACK OF FIRM SCIENTIFIC EVIDENCE THAT MAMMOGRAMS WERE LIFESAVING FOR WOMEN IN THEIR 40S THE NCI DEEMED IT TO BE SOUND MEDICAL JUDGMENT TO SUPPORT AND PROMULGATE THESE RECOMMENDATIONS WHICH CARRY POTENTIAL BENEFIT AND DO NO HARM OTHER SCREENING TESTS SUCH AS CHOLESTEROL MEASUREMENTS IN WOMEN OVER 40 HAVE ALSO BEEN RECOMMENDED AND ENDORSED BY NIH WITHOUT ABSOLUTE PROOF THAT THEY ARE LIFESAVING THERE ARE COUNTLESS OTHER EXAMPLES WHEN THE NATIONAL CANCER INSTITUTE DID ITS RECENT 180DEGREE TURN ON THESE RECOMMENDATIONS IT SAID THAT BECAUSE THE SCIENTIFIC EVIDENCE DOES NOT UNEQUIVOCALLY CONCLUDE THAT SCREENING MAMMOGRAMS CONDUCTED EVERY ONE TO TWO YEARS SAVE THE LIVES OF WOMEN IN THEIR 40S THE NCI WOULD MAKE NO RECOMMENDATIONS IN OTHER WORDS IT WOULD JUST STATE THE FACTS AND LET WOMEN DECIDE FOR THEMSELVES THERE IS NO REASON TO BELIEVE THAT THE NATIONAL CANCER INSTITUTE WAS INFLUENCED BY THE WHITE HOUSE THE NCI DID PASS THE BALL BACK TO WOMEN ON SCIENTIFIC GROUNDS HOWEVER QUESTIONABLE BUT THE CLINTON ADMINISTRATION WAS THERE TO INTERCEPT THE ADMINISTRATION IS USING THE NCI'S NEW POSITION TO JUSTIFY A COSTBASED DECISION TO LIMIT WOMEN'S HEALTH CARE CHOICES TO LIMIT THEIR ACCESS TO MAMMOGRAPHY AT A TIME WHEN BREAST CANCER IS REACHING EPIDEMIC PROPORTIONS IN OUR COUNTRY THE NCI BASED ITS NEW RECOMMENDATIONS ON A RETROSPECTIVE ANALYSIS OF EIGHT CLINICAL TRIALS ONLY ONE OF THE EIGHT HOWEVER HAD SPECIFICALLY TARGETED WOMEN IN THEIR 40S MOST OF THE WOMEN STUDIED IN THESE EIGHT TRIALS WERE OVER 50 THE RETROSPECTIVE ANALYSIS FOCUSED ON A SMALLER GROUP OF WOMEN UNDER 50 MEANING THE STUDY DESIGN WAS NOT AMPLE ENOUGH TO ANSWER QUESTIONS ABOUT BREAST CANCER IN YOUNGER WOMEN AND INADEQUATE TO ACHIEVE STATISTICAL CERTAINTY REGARDLESS OF THE FINDINGS THE RADIOLOGY COMMUNITY HAS NOTED THAT THE MAMMOGRAPHY USED IN VIRTUALLY ALL OF THE EIGHT STUDIES WOULD NOT BE ACCEPTABLE BY TODAY'S STANDARDS AND WAS PARTICULARLY INADEQUATE IN SCREENING YOUNGER WOMEN FURTHERMORE ONLY FIVE OF THE EIGHT TRIALS FOLLOWED WOMEN WHO DEVELOPED BREAST CANCER IN THEIR 40S FOR MORE THAN 10 YEARS WITH THIS LONGER FOLLOWUP FOUR OF THESE FIVE STUDIES SHOWED A DECREASED MORTALITY AMONG WOMEN WHO HAD CANCERS DETECTED THROUGH MAMMOGRAPHY AN AGGREGATE DECREASE OF 17 BUT THAT IMPROVEMENT IS NOT STATISTICALLY SIGNIFICANT A MUCH MORE RECENT STUDY ANNOUNCED LAST MONTH AT A RADIOLOGIC SOCIETY OF NORTH AMERICA MEETING SHOWED THAT REGULAR STATEOFTHEART MAMMOGRAPHY FOR WOMEN IN THEIR 40S CAN CUT THE DEATH RATE FROM BREAST CANCER BY 26 THIS SIMPLY MEANS THAT WE DO NOT HAVE THE SCIENTIFIC BASE TO SAY CONCLUSIVELY THAT MAMMOGRAPHY LENGTHENS THE LIVES OF WOMEN IN THEIR 40S IF BREAST CANCER OCCURS THEN HOWEVER THE CONCLUSION THAT THERE ARE NO BENEFITS HAS NOT BEEN PROVED EITHER WE NEED A DEFINITIVE STUDY TARGETING YOUNGER WOMEN USING PRESENTDAY TECHNOLOGY THAT STUDY HAS NOT YET BEEN DONE IT SEEMS IMPERATIVE THAT THE NCI SPONSOR SUCH A TRIAL MAMMOGRAPHY DOES DETECT AS MANY AS 15 CANCERS FOR EVERY 1000 WOMEN SCREENED THROUGHOUT THEIR 40S MAMMOGRAMS DO DETECT CANCER EARLIER THAN WOULD A MANUAL BREAST EXAM AND CAN DETECT SUSPICIOUS LESIONS THAT TURN OUT TO BE BENIGN ON BIOPSY BUT FOR WOMEN IN THEIR 40S WE HAVEN'T YET PROVED THAT SUCH EARLY DETECTION IS AS LIFESAVING AS IT IS FOR MOST OTHER TUMORS WOMEN TRYING TO DETERMINE WHETHER THEY NEED MAMMOGRAPHY MUST BE CONFUSED THE AMERICAN CANCER SOCIETY THE AMERICAN COLLEGE OF OBSTETRICS AND GYNECOLOGY THE AMERICAN MEDICAL ASSOCIATION THE BREAST CANCER COALITION THE SUSAN G KOMEN FOUNDATION AND SEVERAL OTHER BREAST CANCER ADVOCACY GROUPS DISAGREE WITH THE NCI'S CHANGE OF HEART EVEN THE NATIONAL CANCER ADVISORY BOARD THE INDEPENDENT BODY OVERSEEING THE NCI VOTED 15 TO 1 TO KEEP THE CURRENT GUIDELINES AT LEAST FOR NOW THE AMERICAN CANCER SOCIETY ACCUSED THE NCI OF MAKING RECOMMENDATIONS THAT WERE CONFUSING AND ALIENATING AND OF INAPPROPRIATELY ASKING WOMEN TO EVALUATE SCIENTIFIC DATA AND MAKE A JUDGMENT ON THEIR OWN TO ME THE DATA SAY WE NEED EVEN EARLIER BREAST CANCER DETECTION DETECTION THAT WOULD COME WITH MORE SENSITIVE FORMS OF MAMMOGRAPHY WE NEED GREATER UNDERSTANDING OF THE MOLECULAR GENETICS AND CELL BIOLOGY OF BREAST CANCER IN YOUNGER WOMEN AND WE NEED DRAMATICALLY IMPROVED THERAPIES FOR THE ESPECIALLY AGGRESSIVE TUMORS THAT CAN AFFLICT THEM IN SHORT FOR THE 29000 OR SO AMERICAN WOMEN A YEAR WHO DEVELOP BREAST CANCER BEFORE THEY ARE 50 YEARS OLD WE NEED BETTER MAMMOGRAPHY NOT NO MAMMOGRAPHY WE NEED BETTER TREATMENT NOT LATER TREATMENT THE WHITE HOUSE HOWEVER CAN ONLY BE PLEASED WITH THE NCI FLIPFLOP AS IT APPROACHES CONGRESSIONAL ACTION ON ITS HEALTH CARE REFORM PACKAGE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA IN PARTICULAR HAS BEEN TRYING TO DEFEND THE WHITE HOUSE POSTURE ON MAMMOGRAPHY FOR THE PAST SEVERAL MONTHS THE NCI'S NEW STATEMENT BECOMES RETROACTIVE VALIDATION OF A HIGHLY QUESTIONABLE RESTRICTION IN THE PRESIDENT'S HEALTH CARE PACKAGE THIS IS NOT JUST A WOMEN'S ISSUE IF THE CLINTON ADMINISTRATION CAN LIMIT MAMMOGRAPHY THEN WHAT KEEPS IT FROM LIMITING BLOOD CHOLESTEROL AND PROSTATE CANCER TESTS THE NEW EMERGING BLOOD TEST FOR COLON CANCER KIDNEY DIALYSIS OR HIP REPLACEMENTS UNDER A FEDERALLY CONTROLLED HEALTH PLAN WHAT THE GOVERNMENT GIVETH THE GOVERNMENT CAN TAKETH AWAY DR HEALY A PHYSICIAN WAS THE DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH IN THE BUSH ADMINISTRATION SHE IS CURRENTLY A REPUBLICAN CANDIDATE FOR THE US SENATE FROM OHIO SEE RELATED LETTERS LETTERS TO THE EDITOR THE MAMMOGRAPHY CONTROVERSY WSJ JAN 19 1994 SEE RELATED LETTERS LETTERS TO THE EDITOR MAMMOGRAMS DO HELP REDUCE CANCER DEATHS WSJ FEB 2 1994 9312280117 9401190167 YY94 MM01 YY94 MM02 9402020040 931229 OFFICER DIED BUT WE BLAME POLICE BY STUART CREQUE THIS YEAR OAKLAND CALIF WAS NAMED AN ALLAMERICAN CITY BY THE NATIONAL CIVIC LEAGUE CITY OFFICIALS WORKED LONG AND HARD TO WIN THIS DESIGNATION AND IT'S THE SOURCE OF CONSIDERABLE CIVIC PRIDE MAYOR ELIHU HARRIS WILL TELL YOU THAT ONE OF HIS PROUDEST MOMENTS IN OFFICE WAS ACCEPTING THAT AWARD AND ON THE CITY'S POLICE DEPARTMENT SHORTLIST FOR 1993 OFFICER OF THE YEAR IS WILLIAM GRIJALVA IF HE WINS SOMEONE ELSE WILL BE ACCEPTING THE AWARD FOR HIM AT THE CEREMONY THE 19YEAR DEPARTMENT VETERAN WAS KILLED IN THE LINE OF DUTY DEC 15 THE PREVIOUS DAY THE POLICE DEPARTMENT'S ANIMAL CONTROL SECTION OUR MODERN VERSION OF THE TOWN DOGCATCHER HAD ATTEMPTED TO PICK UP CHEWY A PIT BULL THAT BELONGED TO LUKE GRINAGE AGE 21 CHEWY HAD BITTEN A NEIGHBOR AND SINCE HIS RABIES VACCINATIONS HAD EXPIRED THE LAW REQUIRES QUARANTINE MR GRINAGE REFUSED TO TURN HIS DOG OVER TO THE OFFICERS WHEN THEY RETURNED THE NEXT DAY MR GRINAGE STOOD FIRM THE OFFICERS CALLED FOR BACKUP OFFICER GRIJALVA WAS ONE OF THE OFFICERS WHO RESPONDED AS MR GRINAGE STILL REFUSED TO RELINQUISH THE DOG THE OFFICERS TRIED TO ARREST HIM WHEN HE RESISTED THEY USED MACE TO SUBDUE HIM BUT AS THEY TRIED TO HANDCUFF HIM HE BROKE FREE AND RAN INTO HIS HOUSE OFFICER GRIJALVA CHASED AFTER HIM NOT REALIZING THAT MR GRINAGE HAD PICKED UP A SHOTGUN THAT WAS JUST INSIDE THE FRONT DOOR THE FIRST BLAST CAUGHT OFFICER GRIJALVA IN HIS SIDE AND SPUN HIM AROUND THE SECOND BLAST HIT HIM IN THE BUTTOCKS OFFICER GRIJALVA THEN DREW HIS GUN AND MANAGED TO RETURN FIRE AS DID ONE OF THE OTHER OFFICERS CAUGHT IN THE CROSSFIRE WAS MR GRINAGE'S FATHER RAFAEL WHO WAS SITTING IN A WHEELCHAIR JUST INSIDE THE FRONT DOOR BOTH FATHER AND SON WERE FATALLY WOUNDED REPORTS CONFIRM THAT RAFAEL WAS KILLED BY A POLICE ROUND POSSIBLY FIRED BY THE DYING OFFICER GRIJALVA THERE YOU HAVE IT THREE MEN KILLED SENSELESSLY ONCE UPON A TIME THE COMMUNITY'S REACTION WOULD HAVE BEEN PREDICTABLE THERE WOULD HAVE BEEN SYMPATHY FOR THE COP'S WIDOW AND TWO CHILDREN AN OUTPOURING OF GRIEF FOR THE FALLEN OFFICER A PAST DEPARTMENTAL WINNER OF A MEDAL OF VALOR FOR SAVING A DISABLED PERSON IN A HOUSE FIRE TODAY THE COMMUNITY'S REACTION IS JUST AS PREDICTABLE OUTRAGE THAT THE SUPPOSEDLY INSENSITIVE AND CONFRONTATIONAL STYLE OF THE OAKLAND POLICE LED TO THE DEATH OF AN INNOCENT WHEELCHAIRBOUND MAN CERTAINLY THE COPS SHOULDN'T HAVE SHOT HIM BUT THAT SHOULDN'T HAVE IS AT THE END OF A LONG TRAIL OF SHOULDN'T HAVES THAT LEADS BACK TO THE PATHETIC ORIGINS OF THIS INCIDENT LUKE GRINAGE SHOULDN'T HAVE PICKED UP A SHOTGUN AND OPENED FIRE ON THE POLICE PUTTING HIS OWN DISABLED FATHER IN PERIL OR PULLED AWAY FROM OFFICERS WHO HAD THE RIGHT AND THE DUTY TO HANDCUFF HIM OR REFUSED TO TURN HIS DOG OVER TO ANIMAL CONTROL OFFICERS FOR QUARANTINE OR ALLOWED HIS DOG TO BITE OTHER RESIDENTS OF THE NEIGHBORHOOD RAFAEL GRINAGE LUKE'S FATHER SHOULDN'T HAVE LET HIS SON GROW UP WITHOUT ANY RESPECT FOR THE POLICE OR FOR HUMAN LIFE ITSELF THE CITY OF OAKLAND SHOULDN'T HAVE TOLERATED THE GRADUAL DEVELOPMENT OF A CULTURE OF HATRED TOWARD THE POLICE AS A CONSEQUENCE OF THIS TOLERATION THERE EXISTS A SEGMENT OF AMERICA'S POPULATION THAT HAS NO CONCEPT OF THE RULE OF LAW OR SOCIAL ORDER IT REGARDS THE POLICE AS AN IMPLACABLE ENEMY THE OAKLAND POLICE DEPARTMENT WAS ONCE NOTED FOR ITS EXCESSIVE VIGOR IN ENFORCING THE LAW MY OWN FATHER A PUBLIC SCHOOL TEACHER AT OAKLAND HIGH UNTIL HIS RETIREMENT WAS ONCE BEATEN BY OAKLAND POLICE OFFICERS AT A SCHOOL BOARD MEETING WHEN A PEACEFUL DEMONSTRATION TURNED UGLY UNDER THE PRODDING OF RESPONSIBLE COMMUNITY LEADERS OVER THE PAST 25 YEARS THE CITY HAS BEEN SUCCESSFUL IN REFORMING THE POLICE DEPARTMENT NOW THE DEPARTMENT IS COMPOSED OF FOR THE MOST PART HIGHLY PROFESSIONAL OFFICERS LIKE OFFICER GRIJALVA WHO SERVE A CYNICAL COMMUNITY OAKLAND CAN GARNER AS MANY AWARDS AS ITS CITY HALL CAN HOLD BUT IT WILL CONTINUE TO BE RACKED BY VIOLENCE DRUGS AND MURDER UNLESS ITS ELECTED OFFICIALS AND COMMUNITY LEADERS STAND UP AND GIVE TRUE SUPPORT TO THEIR POLICE DEPARTMENT SURGEON GENERAL JOYCELYN ELDERS HAS IT BACKWARD VIOLENT CRIME HAS BECOME THE ROOT CAUSE OF POVERTY AND ECONOMIC DECLINE IN CITIES LIKE OAKLAND AND NOT THE OTHER WAY AROUND OAKLAND ALL OF AMERICA NEEDS TO REBUILD A CULTURE OF CIVILITY AND SOCIAL RESPONSIBILITY AND A GOOD PLACE TO START IS TO TEACH ITS YOUNG PEOPLE TO RESPECT AND OBEY POLICE OFFICERS CONGRESS IS PREPARING TO PASS A BILL TO PUT AN ADDITIONAL 100000 COPS ON THE STREET AND OAKLAND IS HOPING TO GET ITS FAIR SHARE OF THEM LET'S PRAY THAT THEY MEET A BETTER FATE THAN DID OFFICER GRIJALVA MR CREQUE IS A MARKETING EXECUTIVE AND A NATIVE OF OAKLAND CALIF SEE RELATED LETTER LETTERS TO THE EDITOR WHY POLICE ARE SOMETIMES THE ENEMY WSJ FEB 2 1994 9312290076 YY94 MM02 9402020035 931214 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY LUCINDA HARPER A NEW UNEMPLOYMENT GAUGE PERPLEXES ECONOMISTS IN JANUARY THE BUREAU OF LABOR STATISTICS WILL BEGIN USING A NEW METHOD TO TALLY THE NUMBER OF UNEMPLOYED IT IS EXPECTED TO BOOST THE REPORTED UNEMPLOYMENT RATE AS MUCH AS 05 PERCENTAGE POINT MANY ECONOMY WATCHERS HAVE DEMANDED THAT THE BUREAU ISSUE A PARALLEL SURVEY DONE THE OLD WAY SO THAT A QUICK COMPARISON OF THE TWO CAN BE MADE EACH MONTH THE BUREAU COUNTERS THAT THE PARALLEL STUDY WOULD BE TOO SMALL TO PROVIDE ACCURATE MONTHLY READINGS BUT THE DEPARTMENT WILL SPEED UP A RESEARCH PROGRAM DESIGNED TO TIE THE OLD AND NEW DATA FOR HISTORICAL COMPARISONS IT WOULD PREFER TO ISSUE THE OLD DATA QUARTERLY TO LIMIT VOLATILITY THE RESEARCH EFFORT IS EXPECTED TO WIN THE ROUGHLY 105 MILLION IT WOULD COST ANNUALLY THE CLINTON ADMINISTRATION IS SPENDING HOURLONG SESSIONS TRYING TO DECIDE HOW TO FORECAST 1994 UNEMPLOYMENT IN LIGHT OF THE CHANGES SAYS WHITE HOUSE ECONOMIST ROBERT WESCOTT A COALITION OF WOMEN SUPPORTS REPLACED WORKERS AT DIAMOND WALNUT AMERICAN AIRLINES FLIGHT ATTENDANTS AND WOMEN'SRIGHTS ADVOCATES HAVE BEEN CANVASSING NEIGHBORHOOD SUPERMARKETS TO ASK SHOPPERS TO BOYCOTT DIAMOND WALNUT GROWERS INC OF STOCKTON CALIF WORKERS AT DIAMOND WALNUT MOST OF THEM MOTHERS AND GRANDMOTHERS WERE PERMANENTLY REPLACED IN 1991 WHEN THEY WENT ON STRIKE TO RESIST HEALTHBENEFIT REDUCTIONS AFTER HAVING ACCEPTED PAY CUTS SEVERAL YEARS BEFORE THE DIAMOND WALNUT WORKERS' FIGHT IS OUR FIGHT SAYS DEBBIE MURPHY AN AMERICAN AIRLINES FLIGHT ATTENDANT THE WOMEN'S BUREAU OF THE LABOR DEPARTMENT URGES A RESOLUTION TO THE DIAMOND WALNUT CONTROVERSY FOR THE GOOD OF THE COMPANY THE COMMUNITY AND THE WORKERS CONSTRUCTION BUSINESS HAS GROWN A BIT BUILDING INDUSTRY CONFIDENCE HOLDER CORP AN ATLANTABASED COMMERCIALCONSTRUCTION FIRM SAYS CONTRACTS FOR HOSPITALS AND MEDICAL BUILDINGS AND EVEN FOR OFFICE SPACE ARE UP WE'RE OPTIMISTIC ABOUT NEXT YEAR SAYS CHAIRMAN BOB HOLDER WHO ANTICIPATES ADDING 10 MORE EMPLOYEES TO THE FIRM'S 150 IN 1994 THE CONSTRUCTION AND GENERAL LABORERS UNION IN NEW ORLEANS IS CONFIDENT THAT INCREASED LEGALIZED GAMBLING THERE WILL MEAN WORK BUILDING CASINOS HOTELS AND RESTAURANTS THE HOUSING SECTOR GROWS ACTIVE CALAIS HOME CORP IN HOUSTON HAS BUILT 150 NEW HOMES SO FAR THIS YEAR AND REGIONAL PRESIDENT BILL GRAPER EXPECTS A 35 INCREASE NEXT YEAR THE PICKUP IN BUSINESS WON'T MEAN NEW JOBS THOUGH INSTEAD THERE WILL BE LONGER WORKWEEKS FOR EMPLOYEES WHOSE HOURS WERE CUT DURING SLOWER TIMES MUCH CONSTRUCTION WORK IS REMODELING AND RENOVATIONS THE CARPENTERS' UNION IN HOUSTON HAS BEEN BUSY REVAMPING DEPARTMENT STORES MW KELLOGG CO IN HOUSTON SAYS REMODELING CAN MEAN MORE WORK THAN BUILDING A NEW SITE THE MOST UNDERUTILIZED EMPLOYEE BENEFIT IN AMERICA IS THE DEPENDENTCARE SPENDING ACCOUNT WHICH ALLOWS EMPLOYEES ANNUALLY TO SET ASIDE UP TO 5000 OF THEIR PAY TAXFREE TOWARD CHILD OR ELDER CARE ALTHOUGH 81 OF EMPLOYERS OFFER THE BENEFIT ONLY 5 OF EMPLOYEES MAKE USE OF IT ACCORDING TO A HAY GROUP SURVEY COLLEGE GRADS MAY HAVE MORE LUCK LANDING JOBS IN 1994 AT GENERAL MILLS INC HIRING OF COLLEGE GRADS FOR MANAGEMENT SPOTS IS UP SLIGHTLY FROM LAST YEAR ACCORDING TO WILLIAM DITTMORE DIRECTOR OF RECRUITMENT PARSONS CORP A BIG PASADENA CALIF ENGINEERING AND CONSTRUCTION FIRM HAS NOTICED MORE FEMALE CHEMICALENGINEERING GRADS AND IS HIRING MORE WOMEN AS A RESULT A SURVEY BY THE COLLEGE PLACEMENT COUNCIL INC FOUND EMPLOYERS EXPECT TO HIRE 59 MORE GRADUATES IN 1994 THAN 1993 BUT COMPANIES ARE ACTUALLY DECREASING ONCAMPUS RECRUITING THE GROUP FOUND ROCKWELL INTERNATIONAL CORP IN SEAL BEACH CALIF SAYS IT FINDS ITS BEST CANDIDATES BY SENDING RECRUITERS ON CAMPUS BUT HAS CUT BACK VISITS TO 50 FROM 100 IN PREVIOUS YEARS JACOBS ENGINEERING GROUP INC IN PASADENA FINDS SOME NEW HIRES THROUGH STAFF MEMBERS WHO TEACH AT COLLEGES THE GREATEST DEMAND FOR GRADS WILL BE IN CHEMICAL AND ELECTRICAL ENGINEERING SAYS KEY CORP CHIEF ECONOMIST JEFF THREDGOLD BUSINESS SYSTEMS ANALYSIS ENVIRONMENTAL SCIENCE MEDICAL SPECIALISTS AND MULTIMEDIA GRADS ALSO WILL BE SOUGHT HE SAYS THE CHECKOFF WOMEN WORK OFFERS A NEW TOLLFREE NUMBER TO GUIDE WOMEN TO JOB TRAINING AND PROVIDE FINANCIAL TIPS 8002352732 AMERICAN BUSINESS SPENDS 15 OF PAYROLL ON TRAINING WHILE BUSINESSES IN EUROPE AND JAPAN SPEND 5 OR MORE THE AMERICAN SOCIETY FOR TRAINING AND DEVELOPMENT REPORTS SEE RELATED LETTER LETTERS TO THE EDITOR DC JANITORS NONUNION WSJ FEB 2 1994 9312140065 YY94 MM02 9402020034 931227 THE TORTUOUS STORY BEHIND A PRIMETIME STORY BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL A RECENT ABC PRIMETIME LIVE STORY SUGGESTING THAT MARTIN LUTHER KING MAY HAVE BEEN ASSASSINATED BY THE MOB HAD BEEN REJECTED EARLIER BY SEVERAL OTHER TELEVISION PROGRAMS BECAUSE THEY SAID IT WAS TOO DIFFICULT TO PROVE PRIMETIME'S DECISION TO BROADCAST THE STORY HAS RENEWED CONCERNS WITHIN THE INDUSTRY ABOUT WHETHER UNPROVEN STORIES ARE BEING AIRED BECAUSE OF INCREASINGLY INTENSE COMPETITION AMONG TELEVISION NEWSMAGAZINES ABC'S KING STORY WHICH AIRED DEC 16 FEATURED AN EXCLUSIVE INTERVIEW WITH LLOYD JOWERS A FORMER MEMPHIS TENN TAVERN OWNER WITH HIS LAWYER AND AN ALLEGED ACCOMPLICE BY HIS SIDE MR JOWERS DISCLOSED THAT AT THE REQUEST OF A GROCER WITH REPUTED MOB CONNECTIONS HE HAD HIRED A HIT MAN SOMEONE OTHER THAN THE CONFESSED ASSASSIN JAMES EARL RAY TO KILL DR KING IN APRIL 1968 THE FOUR MAJOR NETWORKS ALREADY HAVE NINE WEEKLY NEWSMAGAZINES AND CBS NBC AND ABC EACH HAVE ANOTHER ONE IN THE WORKS BECAUSE THEY ARE ALL COMPETING FOR PROVOCATIVE MATERIAL IT IS EASIER THAN IT WAS AND EASIER THAN IT OUGHT TO BE FOR PEOPLE TO GET THEIR ALLEGATIONS ON THE AIR SAYS FREDERICK SCHAUER A PROFESSOR AT HARVARD UNIVERSITY'S CENTER ON THE PRESS POLITICS AND PUBLIC POLICY IN THE SEASON TO DATE PRIMETIME RANKS 15TH AMONG ALL PRIMETIME SHOWS AND THIRD AMONG NEWSMAGAZINES BEHIND 60 MINUTES AND 20/20 BUT BY AIRING THE PIECE PRIMETIME TURNED MR JOWERS'S 15 MINUTES OF FAME INTO A MEDIA FRENZY A NASHVILLE TENN PAPER SET OUT TO TRACK DOWN THE GUNMAN A MEMPHIS TELEVISION STATION INVITED PRIMETIME VIEWERS TO CALL IN AND FOUND THAT 80 BELIEVED THE STORY THE REV JOSEPH LOWERY PRESIDENT OF THE SOUTHERN CHRISTIAN LEADERSHIP CONFERENCE THE CIVILRIGHTS GROUP THAT DR KING ONCE HEADED HAS DEMANDED AN OFFICIAL INVESTIGATION REPEATING AN ALLEGATION PROF SCHAUER OBSERVES INCREASES THE PROBABILITY OF PEOPLE BELIEVING IT BEFORE ACCEPTING THE STORY ABC DID INSIST THAT MR JOWERS'S LAWYER SIGN AN AFFIDAVIT ASSURING ABC THAT HE AND HIS CLIENT HADN'T PURSUED ANY DEALS TO SELL THE RIGHTS TO THE STORY ACCORDING TO IRA ROSEN A PRIMETIME SENIOR PRODUCER NEVERTHELESS A NUMBER OF PEOPLE INVOLVED SEEM TO HAVE SOME KIND OF STAKE IN THE STORY WILLIAM PEPPER WHO HAS BEEN MR RAY'S LAWYER SINCE 1988 IS WRITING A BOOK BASED ON THE CONSPIRACY THEORY AND HAS TALKED WITH OLIVER STONE ABOUT MAKING A MOVIE MR STONE'S PUBLICIST CONFIRMED ALTHOUGH NO SUCH MOVIE IS CURRENTLY IN DEVELOPMENT MR PEPPER WHO ISN'T CHARGING FOR HIS WORK ON THE RAY CASE SAYS HE SIMPLY WANTS TO GET THE TRUTH OUT THE WHOLE PURPOSE OF GOING TO THE MEDIA WAS TO TRY TO SHED SOME PUBLIC ATTENTION ON THE INACTIVITY OF THE PROSECUTOR HE SAYS AS FOR MR JOWERS FORMER US ATTORNEY W HICKMAN EWING WHO PARTICIPATED IN A FICTIONAL TRIAL OF MR RAY ON CABLE TELEVISION LAST APRIL SAYS THE FORMER BAR OWNER OFFERED TO PUT A DIFFERENT SLANT ON HIS TESTIMONY FOR THE RIGHT PRICE MR JOWERS HOWEVER STANDS BY HIS STORY AND DENIES THAT HE SOUGHT ANYTHING BUT HIS EXPENSES IN THE TELEVISED TRIAL HE SAYS HE MIGHT EVENTUALLY CONSIDER SELLING HIS STORY BUT ONLY IF LOCAL AUTHORITIES GRANT HIS REQUEST FOR IMMUNITY FROM PROSECUTION ACCORDING TO HIS LAWYER LEWIS GARRISON THE STORY CAME TO LIGHT SEVERAL MONTHS AGO WHEN A VARIETY OF PEOPLE BEGAN SHOPPING IT AROUND TO REPORTERS GORDON FREEDMAN A HOLLYWOOD PRODUCER WITH TIES TO MR STONE HELPED REV THE ENGINE BY SENDING MR PEPPER TO 60 MINUTES WITH THE WORD THAT MR STONE WAS INTERESTED THE LAWYER HAD COME TO MR STONE MR FREEDMAN SAYS BECAUSE OLIVER IS A WAY STATION FOR ANYBODY DOING THESE KINDS OF THINGS AT 60 MINUTES CHARLES C THOMPSON A PRODUCER WHO HAS TRACKED KING CONSPIRACY THEORIES FOR 25 YEARS REVIEWED THE STORY AND CONCLUDED IT WASN'T CREDIBLE ACCORDING TO CORRESPONDENT MIKE WALLACE SO DID THE CBS EVENING NEWS WHICH AFTER TALKING WITH MR PEPPER WENT TO MEMPHIS TO CHECK IT OUT BUT FOUND NO MATERIAL EVIDENCE TO CORROBORATE IT SAYS PRODUCER MICHAEL SINGER THE STORY WAS ALSO INVESTIGATED BY JACK CHESNUTT A PRODUCER FOR THE NBC PROGRAM NOW WHO SAYS HE WAS CONCERNED ABOUT THE LACK OF PHYSICAL EVIDENCE BUT HASN'T RULED OUT A FUTURE BROADCAST THIS STORY IS STILL UNFOLDING HE SAYS THE STORY WAS ALSO PITCHED TO TWO SEPARATE PRODUCERS AT ABC'S OWN 20/20 EACH LOOKED INTO THE STORY INDEPENDENTLY AND EACH REJECTED IT WHEN THEY COULDN'T FIND ENOUGH EVIDENCE TO BACK IT UP PRIMETIME POINTS OUT THAT IT DIDN'T FIRST LEARN ABOUT THE STORY FROM EITHER MR PEPPER OR MR JOWERS PART OF THE STORY BROKE EARLIER THIS MONTH WHEN THE LONDON OBSERVER PUBLISHED AN ARTICLE DESCRIBING THE ALLEGATIONS WITHOUT NAMING MR JOWERS AND OTHER NEWSPAPERS FOLLOWED UP MESSRS DONALDSON AND ROSEN SAY ABC PICKED UP THE TALE FROM THESE NEWS REPORTS AND WAS LED TO MR JOWERS BY JACK SALTMAN A CONSULTANT WHOM ABC PAID TO HELP TRACK DOWN THE STORY MR SALTMAN KNEW THE TERRITORY BECAUSE HE HAD PRODUCED THE EARLIER TELEVISED MOCK TRIAL ON HBO NOW INFIGHTING HAS BROKEN OUT AT THE NETWORK OVER PRIMETIME'S DECISION TO RUN THE STORY BITTER MEMOS HAVE CIRCULATED SOME WRITTEN BY PRIMETIME EMPLOYEES WHO OBJECTED TO THE PIECE ACCORDING TO PEOPLE WHO HAVE SEEN THE MEMOS BUT MR ROSEN SAYS MR JOWERS'S CONFESSION WAS LEGITIMATE NEWS THE DIFFERENCE BETWEEN US AND EVERYONE ELSE IS THAT NOBODY ELSE HAD JOWERS ON THE RECORD SAYING WHAT HE SAID WHAT OF MR JOWERS'S STORY HE CLAIMS THAT THE GUNMAN INSTEAD OF FIRING FROM THE WINDOW OF THE ROOMING HOUSE WHERE MR RAY WAS STAYING SHOT DR KING FROM BEHIND THE BRUSH ON SOME SLOPING GROUND NEARBY SKEPTICS HAVE CHRISTENED THIS AREA THE BRUSHY KNOLL AN ALLUSION TO THE GRASSY KNOLL IN DALLAS THAT FIGURES IN VERSIONS OF THE JFK ASSASSINATION THE MONEY FOR THE HIT ALLEGEDLY CAME FROM FRANK LIBERTO A DECEASED MEMPHIS GROCER WITH ALLEGED TIES TO NEW ORLEANS MOB BOSS CARLOS MARCELLO WHO IS ALSO DEAD ALTHOUGH MR JOWERS HASN'T EXPLAINED THE MOB'S MOTIVE MR PEPPER AND OTHERS INVOLVED IN THE CASE HAVE ATTEMPTED TO DO SO IN SOME VERSIONS THE MAFIA DID THE JOB AS A FAVOR TO DR KING'S ARCHENEMY FEDERAL BUREAU OF INVESTIGATION CHIEF J EDGAR HOOVER OTHERS CONTEND THAT THE CENTRAL INTELLIGENCE AGENCY AND THE GREEN BERETS HAD A ROLE IN THE PLOT I LOVE THE DEAL ABOUT THE MOB SAYS JOHN PIEROTTI A MEMPHIS PROSECUTOR WHO'S CONVINCED THE WHOLE AFFAIR IS A HOAX IF ORGANIZED CRIME PEOPLE REALLY ARE INVOLVED IN THIS BROTHER JOWERS ISN'T GOING ON TELEVISION TO SAY ALL THIS STUFF BECAUSE BROTHER JOWERS IS GOING TO BE PUSHING UP DAISIES DESPITE PROSECUTOR PIEROTTI'S SKEPTICISM THE HYPE SURROUNDING THE STORY HAS FORCED HIS HAND RELUCTANTLY HE SAYS HE HAS NOW LAUNCHED AN INVESTIGATION SEE RELATED LETTER LETTERS TO THE EDITOR CONSPIRACY TO KILL KING IT'S WORTH INVESTIGATING WSJ JAN 12 1994 SEE RELATED LETTER LETTERS TO THE EDITOR QUESTIONS REMAIN ABOUT KING'S MURDER WSJ FEB 2 1994 9312270107 9401120028 YY94 MM01 YY94 MM02 9402010094 931229 CLOUDED SUN JAPAN ECONOMICALLY AND POLITICALLY AILING IS SINKING INTO GLOOM EUPHORIA OF '80S BOOM ENDS AS PEOPLE CUT SPENDING AMID WORRIES OVER JOBS AN EASIER ALLY FOR THE US BY MICHAEL WILLIAMS AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO SHINTARO ISHIHARA CHUCKLES WHEN SHOWN A COPY OF THE JAPAN THAT CAN SAY NO HIS JINGOISTIC 1989 BESTSELLER THAT WAS A LONG LONG TIME AGO THE JAPANESE LEGISLATOR SAYS WITH A SHRUG EVERYTHING HAS CHANGED IN THAT ERADEFINING BOOK MR ISHIHARA URGED A TECHNOLOGICALLY SUPERIOR NEWLY CONFIDENT JAPAN TO THROW ITS ECONOMIC WEIGHT AROUND AS JAPAN CLOBBERED AMERICAN MAKERS OF STEEL AND CARS THE NEW REPUBLIC MAGAZINE WAGGISHLY WARNED ABOUT THE THREAT TO THE US HUMOR INDUSTRY THE JAPANESE HAVE WORKED HARD TO IMPROVE THEIR SENSE OF IRONY AND PACING THE FACT THAT THEY WORK SO CHEAP AND NEVER MISS A DEADLINE MEANS THAT THEY EVENTUALLY WILL FORCE GARRISON KEILLOR ROY BLOUNT JR AND PJ O'ROURKE TO GO INTO ANOTHER LINE OF WORK TODAY THE ISHIHARA BOOK SEEMS LIKE A RELIC AMID ECONOMIC STAGNATION AND POLITICAL UPHEAVAL A HUMBLER JAPAN ONCE WIDELY TOUTED AS NO 1 APPEARS TO BE LOSING MOMENTUM THE JAPANESE ARE BUYING BOOKS SUCH AS SUPERUNEMPLOYMENT AND THE GREAT DEPRESSION SURVIVAL GUIDE AND GOODLUCK CHARMS AN ABASHED MR ISHIHARA MEANWHILE IS WRITING A BOOK ON JAPAN'S RELATIONS WITH THE REST OF ASIA EVEN IN THE GOGO DAYS OF COURSE ONLY A MINORITY OF JAPANESE CLAIMED THEIR COUNTRY WAS NO 1 BUT NOWADAYS PRACTICALLY NO ONE HERE SAYS SO AMERICA MAY BE GOING DOWNHILL BUT WE'RE LYING ON THE STREET AND NOT MOVING SAYS KAZUO NUKAZAWA MANAGING DIRECTOR OF THE KEIDANREN BIGBUSINESS ORGANIZATION PEOPLE HAVE LOST TOO MUCH CONFIDENCE SUCH SELFDOUBT REFLECTS A CREEPING FEELING HERE THAT MAYBE JAPAN IS LOSING NOT ONLY MOMENTUM BUT EVEN ITS WAY OF COURSE JAPAN RETAINS ITS UNDERLYING ECONOMIC STRENGTHS INCLUDING ITS DISCIPLINED WORK FORCE AND SUPERB EDUCATIONAL SYSTEM BY MANY MEASURES IT IS STILL MUCH STRONGER THAN AMERICA BUT WHATEVER THE REALITY THE JAPANESE ARE SUFFERING A DROP IN CONFIDENCE IN THE SLOWGROWTH 1990S PEOPLE HAVE BECOME MORE DOMESTIC IN THEIR THINKING THEY'RE PULLING IN SAYS MERRY WHITE A BOSTON UNIVERSITY SOCIOLOGIST STUDYING THE CHANGING JAPANESE NATIONAL IDENTITY NOW JAPAN CUTS A VERY DIFFERENT FIGURE IN THE WORLD ALREADY THE COUNTRY THAT HAS TOUTED ITS SYSTEM OF CAPITALISM AS SUPERIOR TODAY SEEMS MORE WILLING TO LISTEN TO AMERICAN SUGGESTIONS AT THE SAME TIME SOME JAPANESE CALCULATE THAT THE IMAGE OF A WEAKER MORE MODEST JAPAN WILL ENCOURAGE WASHINGTON TO STOP BASHING IT THE WORST DAYS OF USJAPAN RELATIONS ARE OVER ASSERTS YUKIO OKAMOTO WHO AS A FOREIGN MINISTRY OFFICER IN THE LATE 1980S WAS IN THE CENTER OF THE CONTENTION BETWEEN THE NATIONS AND NOW CONSULTS FOR BUSINESSES IN BOTH THE KNOWLEDGE THAT JAPAN IS COMING DOWN HAS ALLOWED AMERICANS TO RELAX FOR THE MOMENT ANYWAY JAPAN'S DAYS OF GLEEFUL FINGERWAGGING AT AMERICA'S DECLINE ARE OVER BACK IN THE 1980S A JAPANESE MANUFACTURING EXPERT HAJIME KARATSU DECLARED THAT THE US HAD BUNGLED ITS ECONOMIC MANAGEMENT AND SUNK ITSELF NOW HE SAYS AMERICAN COMPANIES HAVE CAUGHT UP AND JAPANESE COMPANIES ARE GUILTY OF LAZINESS AND THEREFORE WE JAPANESE SHOULD MAKE EFFORTS AGAIN TO STUDY US INDUSTRY JUST LIKE AFTER WORLD WAR II WHAT EXPLAINS THE TURNABOUT IN PERCEPTIONS IN A COUNTRY THAT JUST FOUR YEARS AGO SEEMED SO UNSTOPPABLE THE SHIFT PARTLY REFLECTS THE FACT THAT NOTHING HAS REPLACED JAPAN'S OLD FRAYING ECONOMIC AND POLITICAL MODEL BUT IT ALSO REFLECTS A REACTION TO WHAT IN RETROSPECT WAS AN OVERLY GIDDY VIEW OF JAPANESE MIGHT IN THE BOOM YEARS JAPAN'S ENORMOUS CAPITAL INVESTMENT BUILT NOT JUST HIGHTECH FACTORIES BUT ALSO TREMENDOUS OVERCAPACITY JAPAN'S INDUSTRY DIDN'T HAVE A MIDAS TOUCH FOR INVESTMENT ANY MORE THAN AMERICA'S DID DURING ITS HUGE OVERSEAS EXPANSION IN THE 1950S THE REST OF THE WORLD IS LEARNING THAT THE JAPANESE AREN'T 10 FEET TALL SAYS CLYDE PRESTOWITZ A FORMER US TRADE OFFICIAL WHO HAS BEEN A LEADING ADVOCATE OF TOUGHER AMERICAN TRADE POLICY AGAINST JAPAN BUT HE WARNS AGAINST LETTING DOWN AMERICA'S GUARD TOO FAR THE REACTION NOW IS THAT THEY'RE TWO INCHES TALL THE REALITY IS THAT THEY'RE NINE FEET TALL THAT INDEED MAY EVENTUALLY PROVE TRUE BUT RIGHT NOW STRANGE THINGS ARE HAPPENING AND THE JAPANESE MEDIA ARE WALLOWING IN THE GLOOM MUCH AS THEY REVELED IN THE EXCESSES OF THE 1980S FOR INSTANCE ONE MAGAZINE NOW REPORTS THAT JAPAN IS PLAGUED WITH A WAVE OF NEW RECESSIONINDUCED PSYCHIATRIC ILLS SUCH AS SMILING DEPRESSION IN WHICH PEOPLE WHO FEAR GETTING FIRED WEAR A FORCED GRIN TO HIDE THEIR TERROR IF THE AX DOES FALL EIKAN KYU WRITES IN HIS BOOK IS YOUR COMPANY OK VICTIMS SHOULD FLEE POOPEDOUT JAPAN TO SEEK WORK IN FASTGROWING CHINA TALK ABOUT TRADING PLACES THESE DAYS DETROIT IS BACK ON THE ROAD AND NISSAN MOTOR CO AND MAZDA MOTOR CORP ARE LOSING MONEY AN ARTICLE IN THE POPULAR MONTHLY MAGAZINE GENDAI IS HEADLINED JAPAN'S AUTO INDUSTRY WILL BECOME EXTINCT WHEN A REJUVENATED CHRYSLER CORP RECENTLY INTRODUCED ITS LOWPRICE HIGHPERFORMANCE NEON COMPACT THE JAPANESE PRESS DUBBED IT THE JAPANCAR KILLER THINGS WILL GET WORSE BEFORE THEY GET BETTER TAKASHI ASAI WARNS IN THE DARK CAFE WHERE HE DOES MUCH OF HIS WRITING THE 39YEAROLD NEWSPAPERMAN AND AUTHOR OF THE GREAT DEPRESSION SURVIVAL GUIDE TICKS OFF HIS PROGNOSTICATIONS A PANIC GRIPS JAPAN IN 1995 ACCOMPANIED BY CHAINREACTION BANK FAILURES AND A FURTHER PLUNGE IN STOCK PRICES IN A FORTHCOMING BOOK THE GREAT FINDESIECLE SYNDROME MR ASAI PLANS TO DESCRIBE HOW JAPAN IS DOOMED TO A DECADE OF GLOOM BY AN UNFORTUNATE CONFLUENCE OF HISTORICAL FORCES SUCH AS THE END OF THE 800YEAR CIVILIZATION CYCLE POWER IS SHIFTING FROM OCCIDENT TO ORIENT HE SAYS AND EVENTUALLY JAPAN WILL BENEFIT BUT IN THE 1990S THE WESTERNIZED ASIAN NATION IS IN THE MIDDLE SO IT WILL GET TROUBLE FROM BOTH SIDES BLEAK STUFF BUT MR ASAI ISN'T UNHAPPY HIS PUBLISHER HAS SOLD 120000 COPIES OF SURVIVAL GUIDE SINCE IT WENT ON SALE THIS FALL A COMPANION VOLUME GOLD WILL SAVE JAPAN HAS SOLD 30000 COPIES THE TIMING COULDN'T BE BETTER HE CONFIDES HE IS ABOUT TO QUIT HIS NEWSPAPER JOB AND GO FREELANCE IT'S PART OF MY OWN SURVIVAL STRATEGY HE SAYS THOSE LESS FORTUNATE ARE SEARCHING FOR OTHER STRATEGIES AT NIKKEI WOMAN MAGAZINE EDITOR IN CHIEF NORIO ADACHI THUMBS THROUGH THE CURRENT ISSUE'S FEATURE ON NEW WAVE MONEYSAVING AMONG THE TIPS A TWOPAGE SPREAD ON GETTING YOUR SHARE OF HOUSING SUBSIDIES AND OTHER GOODIES FROM THE PUBLIC TILL THE PESSIMISM ISN'T ALL HYPE GROWING NUMBERS OF PEOPLE SUCH AS AYAKO TSUKAMOTO ARE IN A REAL FIX THE 20YEAROLD ENGLISH MAJOR WAITS FOR AN INTERVIEW AT A JOB FAIR PACKED WITH TENSE COLLEGE SENIORS WHO STRUCK OUT IN THE JOB MARKET I THINK THE FUTURE OF JAPAN IS BLEAK SHE SAYS I OFTEN THOUGHT THAT JAPAN IS AN AFFLUENT COUNTRY BUT RECENTLY I'VE HEARD ONLY DEPRESSING NEWS SCENES LIKE THE JOB FAIR WHICH ATTRACTED 6571 STUDENTS OVER TWO DAYS DRAW HEAVY TV COVERAGE HERE HEARING SUCH STORIES EVEN PEOPLE WHO FEEL FINANCIALLY SECURE ARE HUNKERING DOWN AN ATTITUDINAL CHANGE THAT MAY LARGELY EXPLAIN WHY RETAIL SALES HAVE DROPPED FROM YEAREARLIER LEVELS FOR 18 MONTHS IN A ROW THE MEDIA BLITZ SAYS ITP MARKETING RESEARCH DIRECTOR FUMIO SATO EXPLAINS DIVERGENT POLL RESULTS SUCH AS THIS ONE 70 OF RESPONDENTS SAY THEY TRULY FEEL THE RECESSION BUT 79 ALSO SAY THEIR LIFESTYLES HAVEN'T WORSENED ETSUKO EBARA A 33YEAROLD OFFICE WORKER SEEMS TO BE SITTING PRETTY OVER THE PAST SIX OR SEVEN YEARS SHE SAYS SHE HAS SAVED THE EQUIVALENT OF NEARLY 50000 HER JOB IS STABLE AND HER SALARY UNCHANGED AND THE SAME GOES FOR HER FRIENDS BUT RECENTLY SHE TRIMMED HER EXPENSES AND STARTED SAVING AN EXTRA 90 A MONTH WHEN OTHER PEOPLE ARE HOLDING BACK YOU TRY TO DO THE SAME YOURSELF SHE EXPLAINS I GUESS I CAN'T TAKE THE ATTITUDE THAT IT ISN'T AFFECTING ME AT THE RED GOURD A BUSTLING LOWBUDGET PUB 49YEAROLD TOSHIHIRO MOKO SAYS HE IS SICK OF ALL THE GLOOMY TALK PEOPLE ESPECIALLY FOREIGN REPORTERS ARE PLAYING UP JAPAN'S WEAKNESSES HE SAYS AS HE PULLS OUT A COPY OF NEWSWEEK'S JAPANESE EDITION AND JABS HIS FINGER AT ITS COVER THE SINKING OF JAPAN HE COMPLAINS IT'S EXAGGERATED YOU'RE JUST WRITING THIS STUFF TO PLEASE AMERICANS THERE MAY BE SOME TRUTH IN THAT BUT ODDLY ENOUGH THE IMAGE OF A LESS POWERFUL JAPAN PLEASES SOME JAPANESE TOO CYNICS NOTE THAT THE TALK OF ECONOMIC DISASTER MAY HELP COMPANIES EXTRACT WAGE CONCESSIONS FROM WORKERS MOREOVER SOME JAPANESE BELIEVE THAT BECAUSE OF THEIR ECONOMIC SUCCESS JAPAN WAS FORCED TO SEND MONEY TO THE GULF WAR AND SOLDIERS TO PEACEKEEPING OPERATIONS IN CAMBODIA POLICIES THAT TRIGGERED WRENCHING DEBATES IN THEIR PACIFIST ISOLATIONIST NATION CONNECTED TO THE PERCEPTION OF JAPANESE STRENGTH WAS A FEELING OVERSEAS THAT JAPAN SHOULD DO A LOT MORE POLITICAL THINGS AS WELL SAYS SADAAKI NUMATA THE FOREIGN MINISTRY'S DEPUTY PRESS SECRETARY THE IMAGE OF JAPANESE POWER ALSO FOSTERED TREMENDOUS HOSTILITY ABROAD ESPECIALLY IN THE US A MAJOR FLASH POINT IN THE 1980S USJAPAN TRADE WAR WAS SEMICONDUCTORS AND NEC CORP WHICH BECAME THE WORLD'S LARGEST CHIP MAKER TOOK A LOT OF THE HEAT LAST YEAR INTEL CORP OF SANTA CLARA CALIF SURPASSED NEC FOR THAT HONOR BUT FEW JAPANESE SEEM CRUSHED LET INTEL KEEP IT ONE NEC EMPLOYEE SAYS WE'RE MUCH HAPPIER WITHOUT IT AROUND THE TIME MR ISHIHARA URGED HIS COMPATRIOTS TO SAY NO TO WASHINGTON MR PRESTOWITZ AND OTHER MEMBERS OF THE INFLUENTIAL GROUP OF ACADEMICS AND JOURNALISTS KNOWN AS THE REVISIONISTS ARGUED THAT THE US SHOULD TAKE A MUCH TOUGHER LINE AGAINST TOKYO JAPAN'S ECONOMIC JUGGERNAUT MANY OF THESE PEOPLE SAID PROVED THAT JAPAN WAS DIFFERENT UNFAIR AND THREATENING PRESIDENT CLINTON UPON TAKING OFFICE ADOPTED THIS LINE IN CRAFTING HIS MOREHOSTILE TRADE POLICY DESPITE JAPAN'S SLUMP MOST REVISIONISTS ARE STICKING TO THEIR GUNS SOME EVEN SUGGEST JAPAN IS INTENTIONALLY LYING LOW TO AVOID CRITICISM WHAT THEY NEED IS THE APPEARANCE OF CHANGE TO KEEP THE PRESSURE OFF FOR A WHILE SAYS CHALMERS JOHNSON A JAPAN SCHOLAR AND EARLY REVISIONIST THE TRUTH OF THE MATTER IS THAT JAPAN IS GOING TO COME BACK SO MUCH MORE STRONGLY THAT IT WILL BE THE US THAT HITS THE WALL MANY JAPANESE SAY THEIR SOUR ECONOMY AS WELL AS POLITICAL CHANGE REFUTES THE REVISIONISTS SHOWING THAT JAPAN CAN BE A LESS MENACING MORE COOPERATIVE PARTNER THE REVISIONISTS SAID JAPAN WOULDN'T CHANGE THE FOREIGN MINISTRY'S MR NUMATA SAYS WELL JAPAN IS CHANGING INDEED SOME OF THE UGLY SIDE EFFECTS OF JAPAN'S ECONOMIC RISE THE BACKLASH AGAINST THE JAPANESE AND ASIANS IN THE US SEEM TO HAVE SUBSIDED I HAVE LESS EVIDENCE OF DISCRIMINATORY CONDUCT AND OFFENSIVE SPEECH TOWARD JAPANESEAMERICANS SAYS NORMAN SIEGEL MANAGING DIRECTOR OF THE NEW YORK CIVIL LIBERTIES UNION SINCE THE SURGE OF JAPANESE CORPORATE TAKEOVERS SLOWED HE ADDS ANTIJAPANESE FEELING ISN'T BOILING OVER AS IT WAS A FEW YEARS AGO THE CLINTON ADMINISTRATION ALSO HAS CUT JAPAN SOME SLACK TO SEE HOW THE POLITICAL AND ECONOMIC TURMOIL PLAYS OUT US OFFICIALS WARN THAT THEY STILL WANT QUICK DRASTIC ACTION TO REDUCE JAPAN'S TRADE SURPLUS ESPECIALLY BY THE MIDFEBRUARY SUMMIT BETWEEN THE LEADERS OF THE TWO NATIONS BUT THEY SAY THEY ARE INTRIGUED BY WHAT IS HAPPENING ESPECIALLY WITH CHANGES PROPOSED BY THE REFORMIST GOVERNMENT OF PRIME MINISTER MORIHIRO HOSOKAWA OUR PROPOSALS A SENIOR US TRADE NEGOTIATOR SAYS ARE FULLY CONSISTENT WITH MR HOSOKAWA'S PROPOSALS FOR DEREGULATION AND REVITALIZING THE DOMESTIC ECONOMY THE EVIDENT EASING OF THE JAPANESE ECONOMIC THREAT SOME ANALYSTS FEAR COULD INDUCE AMERICAN INDUSTRY TO BE LESS VIGILANT WILLIAM F FINAN WHO RUNS A WASHINGTONBASED TECHNOLOGYCONSULTING COMPANY SAYS THAT WITH ALL THE TALK THAT JAPAN'S ELECTRONICS GIANTS ARE IN A RUT THE FEELING OF THE IMPORTANCE OF CATCHING UP WITH JAPAN HAS WEAKENED SOME US COMPANIES HE SAYS MAY SOON IGNORE THE FACT THAT JAPAN IS STILL A FIRSTRATE TECHNOLOGY POWERHOUSE IN MANY AREAS MR ISHIHARA EVER THE AGITATOR EVEN IN RETREAT WARNS AMERICA NOT TO RELAX TOO MUCH THE AMERICAN ECONOMY MAY BE TURNING AROUND BUT THERE ARE PROBLEMS SUCH AS AIDS EDUCATION AND SAFETY HE SAYS DO YOU REALLY BELIEVE THAT WHEN THE AMERICAN ECONOMY IS BACK ON TRACK ALL THESE PROBLEMS WILL BE SOLVED SEE RELATED LETTER LETTERS TO THE EDITOR JAPAN'S NOT UNFAIR MERELY MISUNDERSTOOD WSJ FEB 1 1994 9312290166 YY94 MM02 9402010072 931223 ENTERPRISE SUBTERRANEAN INSECTS LIFT YOUNG BIOSYS OFF THE GROUND AGRICULTURAL BIOTECH FIRM DEPENDS ON NEMATODES FOR ITS NATURAL PESTICIDES BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL IN THE STRUGGLING WORLD OF AGRICULTURAL BIOTECHNOLOGY BIOSYS INC IS LEARNING WHAT IT TAKES TO MAKE IT THE SMALL 10YEAROLD COMPANY BASED IN PALO ALTO CALIF TARGETS A NARROW NICHE NATURALLY OCCURRING PESTCONTROL PRODUCTS THAT DON'T REQUIRE REGULATORY APPROVAL AND IT CAREFULLY CHOOSES BIG CORPORATE PARTNERS THIS STRATEGY MAY START TO PAY OFF SOON ANALYSTS EXPECT BIOSYS TO TURN PROFITABLE IN 1995 WELL AHEAD OF RIVALS CROP GENETICS INTERNATIONAL CORP ECOGEN INC AND MYCOGEN CORP BIOSYS OFFICIALS AGREE WITH ANALYSTS' ESTIMATES THAT REVENUE FOR 1993 WILL TOTAL LESS THAN 10 MILLION BUT WILL EXCEED 31 MILLION BY 1995 IN 1992 THE STARTUP FIRM REPORTED A NET LOSS OF 39 MILLION ON REVENUE OF 46 MILLION UNLIKE ITS COMPETITORS BIOSYS HAS BEEN ABLE TO BRING A NUMBER OF SIGNIFICANT PRODUCTS TO MARKET SAYS RICHARD ELAM AN INVESTMENT ANALYST WITH KEMPER SECURITIES IN CHICAGO BIOSYS'S ACHIEVEMENT STANDS OUT WHEN COMPARED WITH THE SLOW PROGRESS AMONG THE MAINLY SMALL COMPANIES ENGAGED IN AGRICULTURAL BIOTECHNOLOGY SO FAR ANALYSTS NOTE THE YOUNG INDUSTRY HAS FAILED TO CREATE ANY BLOCKBUSTERS EVEN THOUGH THE FIRST TWO GENETICALLY ENGINEERED CROPS OF TOMATOES AND SQUASH WILL APPEAR IN US SUPERMARKETS EARLY NEXT YEAR THE INDUSTRY HASN'T MADE ANY MONEY BECAUSE COMPANIES ARE TRYING TO DEVELOP PRODUCTS THAT REPLACE ACCEPTED WAYS ON THE FARM UNLESS THESE PRODUCTS ARE REALLY COSTEFFECTIVE THEIR ACCEPTANCE WILL BE LIMITED SAYS MR ELAM THE ANALYST IN ADDITION MANY AGRICULTURAL BIOTECH COMPANIES HAVE RAISED CONCERN ABOUT SAFETY ISSUES BY FOCUSING ON GENETICALLY ENGINEERED PRODUCTS ENVIRONMENTAL ACTIVISTS WORRIED ABOUT POSSIBLE ILL EFFECTS FROM GENETICALLY ENGINEERED PESTICIDES CONTINUE TO LOBBY THE US ENVIRONMENTAL PROTECTION AGENCY TO REGULATE SUCH SUBSTANCES MORE CLOSELY BY CONTRAST A HEWLETTPACKARD CO RESEARCHER DR BERNARD OLIVER LAUNCHED BIOSYS SPECIFICALLY TO DEVELOP PRODUCTS THAT DIDN'T REQUIRE GENETIC ENGINEERING BACKED BY SOME MAJOR VENTURECAPITAL FIRMS AND WEALTHY INDIVIDUALS SUCH AS DAVID PACKARD AND BILL HEWLETT BIOSYS WANTED TO BUILD PRODUCTS FROM NATURALLY OCCURRING ORGANISMS THAT DON'T LEAVE POISONOUS RESIDUE THE TECHNOLOGY WHILE COMPLICATED REQUIRED LESS TIME TO DEVELOP THAN GENETICALLY ENGINEERED PRODUCTS BIOSYS'S MANAGEMENT HAS TAKEN A VERY PRAGMATIC APPROACH TO BIOPESTICIDES SAYS GEORGE DAHLMAN AN INDUSTRY ANALYST WITH PIPER JAFFRAY INC IN MINNEAPOLIS THEY HAVE DEVELOPED A TECHNOLOGY THAT HAS AVOIDED TIMECONSUMING REGULATORY OBSTACLES WHILE STILL PROVIDING AN EFFECTIVE AND ENVIRONMENTALLY COMPATIBLE PESTCONTROL PRODUCT THE KEY TO BIOSYS'S ACHIEVEMENT IS A TINY NATURAL MICROORGANISM KNOWN AS A NEMATODE THESE WORMLIKE CREATURES THOUGH HARMLESS TO PLANTS AND ANIMALS FATALLY INFECT SUBTERRANEAN INSECTS WITH A CERTAIN BACTERIA ONCE THEY KILL THE INSECTS NEMATODES THEMSELVES DIE AND BIODEGRADE NOBODY HAD PAID MUCH ATTENTION TO NEMATODES UNTIL WE DECIDED TO TARGET THEM IN 1983 RECALLS VENKAT SOHONI CHIEF EXECUTIVE OFFICER OF BIOSYS AND A FORMER PESTICIDESMANUFACTURING EXECUTIVE ALTHOUGH SCIENTISTS KNEW NEMATODES COULD CONTROL PESTS THEY DIDN'T KNOW HOW TO GROW THEM IN LARGE NUMBERS OR PROPERLY STORE THEM FOR LONG PERIODS BIOSYS SPENT FIVE YEARS DEVELOPING A FERMENTATION METHOD TO GROW LARGE QUANTITIES OF NEMATODES AND TO FIND WAYS TO PACK THEM IN GELS AND GRANULES UNTIL USE WHILE COMPANIES INCLUDING ECOGEN AND CROP GENETICS ARE WORKING ON AGRICULTURAL PRODUCTS DERIVED FROM NATURAL ORGANISMS THESE FIRMS LAG BEHIND BIOSYS PATIENT FINANCIAL BACKERS HELPED BIOSYS GAIN AN EDGE MANY BIOTECH STARTUPS GO PUBLIC PREMATURELY BECAUSE THEIR ANXIOUS INVESTORS WANT TO CASH OUT QUICKLY BY CONTRAST BIOSYS SUPPORTERS WAITED UNTIL MARCH 1992 BEFORE THEY FINALLY TOOK THE COMPANY PUBLIC HOWEVER EVEN AFTER REAPING 31 MILLION FROM THE OFFERING BIOSYS EXECUTIVES KNEW THEY STILL LACKED THE RESOURCES TO BUILD THEIR OWN FERMENTATION PLANT AND SALES ORGANIZATION COMPANIES THAT HAVE TRIED TO DO IT ALL BY THEMSELVES HAVE FALTERED BOTH BECAUSE THEY LACKED THE MONEY AND THE KNOWHOW SAYS DR SOHONI INSTEAD HE ADDS BIOSYS SOUGHT MAJOR CORPORATIONS AS MANUFACTURING AND MARKETING PARTNERS SO IT COULD CONCENTRATE ON RESEARCH WHICH IS OUR GREATEST STRENGTH BIOSYS CONTRACTED WITH ARCHERDANIELSMIDLAND CO TO MASS PRODUCE ITS NEMATODES A MOVE THAT LOWERED PROFITS BUT AVOIDED TYING UP 40 MILLION IN A MANUFACTURING PLANT DR SOHONI SAYS FOR MARKETING PURPOSES BIOSYS STRUCK DEALS WITH BIG DISTRIBUTORS OF AGRICULTURAL PRODUCTS INCLUDING CIBAGEIGY LTD AND RHONEPOULENC SA THAT STRATEGY ALLOWED BIOSYS TO QUICKLY DEVELOP A PRESENCE IN SEVERAL MARKETS IN THE US AND ABROAD SAYS MR DAHLMAN OF PIPER JAFFRAY AND LAST YEAR BIOSYS BEGAN LARGESCALE MARKETING DISTRIBUTORS ALSO HELPED BROADEN THE APPEAL OF BIOSYS PRODUCTS THE COMPANY'S 14 NEMATODEBASED PRODUCTS ARE USED NOT ONLY BY FARMERS TO CONTROL PESTS IN CITRUS GROVES ARTICHOKE AND MINT CROPS BUT ALSO BY HOMEOWNERS WANTING TO KILL COCKROACHES AND PROTECT ANIMALS AND LAWNS FROM FLEAS NONETHELESS BIOSYS REMAINS VULNERABLE UNTIL IT PROVES OTHERWISE IT IS A ONETECHNOLOGY COMPANY THAT DOESN'T HAVE A LOT OF CASH SAYS MR ELAM OF KEMPER SECURITIES INDEED WITH LESS THAN 16 MILLION THEY DON'T HAVE THE FINANCIAL STRENGTH TO COMPETE WITH SOME OF THE REALLY BIG PLAYERS IN THIS PESTICIDE INDUSTRY SAYS MR DAHLMAN WITH BIOSYS'S STOCK SELLING AT ABOUT 475 PER SHARE DOWN NEARLY 60 FROM ITS INITIAL OFFERING PRICE OF 12 THE STARTUP FIRM MAY LOSE ITS INDEPENDENCE UNLESS IT BECOMES PROFITABLE SOON ANALYSTS SAY MOREOVER BIOSYS WILL HAVE TO DEVISE MORE APPLICATIONS FOR NEMATODES AND REDUCE ITS DEPENDENCE ON THEM ACCORDING TO MR DAHLMAN AND OTHER ANALYSTS IN MAY IT PAID 7 MILLION TO ACQUIRE AGRISENSE A BRITISH COMPANY THAT DEVELOPS PESTCONTROL PRODUCTS BASED ON PHEROMONES WHICH ARE SEX ATTRACTANTS SECRETED BY INSECTS AND IN OCTOBER 1992 BIOSYS FORMED A JOINT VENTURE WITH THE US AGRICULTURAL UNIT OF SWITZERLAND'S SANDOZ LTD TO MAKE CERTAIN INSECTSPECIFIC PESTICIDES DEVELOPED FROM SOCALLED BACULOVIRUSES BECAUSE THESE VIRUSES OCCUR NATURALLY DR SOHONI SAYS THESE PESTICIDES SHOULD AVOID THE REGULATORY SCRUTINY FACED BY GENETICALLY ENGINEERED AGRICULTURAL BIOTECH PRODUCTS MYCOGEN CORP SAID IT EXPECTS TO BE PROFITABLE THIS YEAR FOLLOWING A RESTRUCTURING OF THE COMPANY A DEC 23 ENTERPRISE ARTICLE QUOTED ANALYSTS AS INDICATING THAT THE SAN DIEGO BIOTECHNOLOGY COMPANY WOULDN'T BE PROFITABLE IN 1994 9401310094 931222 JUDICIALLY SUSPECT CAMPUS SPEECH CODES ARE BEING SHOT DOWN AS OPPONENTS PIPE UP A FRATERNITY SUES AND WINS OVER A TSHIRT ALLIANCES TARGET PC' UNIVERSITIES THOUGHTCOPS GET A LESSON BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL RIVERSIDE CALIF IS THE PARTY OVER FOR THE PC MOVEMENT SHORTHAND FOR POLITICAL CORRECTNESS ON COLLEGE CAMPUSES GROWING EVIDENCE INDICATES IT JUST COULD BE A SWELLING STUDENT BACKLASH LITIGIOUSMINDED PUBLICINTEREST GROUPS AND A RASH OF UNFAVORABLE COURT DECISIONS ARE BEGINNING TO SWEEP ASIDE OR CHALLENGE THE MOVEMENT'S MOST CONTROVERSIAL ICONS CAMPUS SPEECH CODES AND ANTIHARASSMENT POLICIES THAT SOMETIMES IMPINGE ON FREESPEECH RIGHTS IF SO THE PARTY ANIMALS AT PHI KAPPA SIGMA A LOUD AND OBSTREPEROUS FRATERNITY AT A UNIVERSITY OF CALIFORNIA BRANCH HERE WILL HAVE PLAYED A RAUCOUS ROLE IN THEIR DISMANTLING INDEED THIS CAMPUS HAS BEEN ASTIR EVER SINCE UNIVERSITY ADMINISTRATORS BOWING TO PRESSURE BY HISPANIC STUDENT GROUPS BANNED PHI KAPPA SIGMA FROM CAMPUS BECAUSE IT PRINTED A RUSH PARTY TSHIRT DEEMED OFFENSIVE TO SOME CAMPUS HISPANICS INSTEAD OF ROLLING OVER THE FRATERNITY FOUGHT BACK THE SHIRT FEATURING A SOMBREROWEARING MAN HOLDING A BEER BOTTLE WAS MERELY A CARTOONISH DEPICTION OF A SOUTH OF THE BORDER PARTY MEMBERS MAINTAINED ITS LOGO IT DOESN'T MATTER WHERE YOU COME FROM AS LONG AS YOU KNOW WHERE YOU ARE GOING COULDN'T BE MORE INNOCUOUS THEY ASSERTED FURTHERMORE THE SHIRT WAS DESIGNED BY A HISPANIC FRATERNITY MEMBER SO PHI KAPPA SIGMA GOT A LAWYER IT SUED IN STATE COURT HERE ALLEGING VIOLATION OF MEMBERS' FIRST AMENDMENT RIGHTS TO FREE SPEECH AND LAST MONTH IN AN OUTOFCOURT SETTLEMENT IT WON REINSTATEMENT IN ADDITION TWO CAMPUS ADMINISTRATORS HAVE BEEN ORDERED TO SIT THROUGH WHAT JOHN HOWARD THE FRATERNITY'S LAWYER CALLS FIRST AMENDMENT SENSITIVITY TRAINING THE IRONY ISN'T LOST ON ANYONE GIVEN THAT SOCALLED SENSITIVITY TRAINING IS THE PUNISHMENT OF CHOICE FOR THOSE JUDGED GUILTY BY CAMPUS SPEECH POLICE WHAT COULD BE MORE FITTING THAN TO HAVE THEM ADMINISTRATORS GO THROUGH SOME SORT OF SENSITIVITY TRAINING SAYS MR HOWARD THE VICTORY IS PERHAPS THE MOST DRAMATIC TO DATE IN A SLEW OF RECENT SUCCESSFUL CHALLENGES TO CAMPUS SPEECH CODES OR DISCIPLINARY ACTIONS AGAINST STUDENTS FOR ALLEGED POLITICALLY INCORRECT BEHAVIOR SOME BELIEVE IN FACT THAT A GROUNDSWELL OF ANTIPC OPINION COUPLED WITH A 1992 US SUPREME COURT DECISION THAT REGARDED A RACIALLY MOTIVATED CROSSBURNING AS PROTECTED SPEECH IS PUTTING A BRAKE ON A MOVEMENT THAT HAS STEAMROLLERED THROUGH THE NATION'S COLLEGES FOR THE PAST DECADE NUMEROUS CAMPUSES INCLUDING THE UNIVERSITIES OF MICHIGAN AND WISCONSIN HAVE BEEN FORCED BY COURTS TO ABANDON OR NARROWLY REWRITE SPEECH AND HARASSMENT REGULATIONS AND STUDENTS ARE CHALLENGING PUNISHMENTS FOR PROHIBITED SPEECH AT PERHAPS A DOZEN OTHER UNIVERSITIES INCLUDING UNIVERSITY OF CALIFORNIA AT LOS ANGELES UNIVERSITY OF SOUTHERN CALIFORNIA AND COLUMBIA UNIVERSITY AT COLUMBIA THREE MALE STUDENTS WON THEIR JOBS BACK AFTER HIRING A LAWYER TO FIGHT THEIR FIRING LAST YEAR FROM JOBS ESCORTING WOMEN STUDENTS TO OFFCAMPUS HOUSING THEY WERE DISMISSED BY A FEMALE STUDENT SUPERVISOR AFTER THE STUDENTS WERE OVERHEARD RATING THE LOOKS CHOCOLATE FOR ATTRACTIVE VANILLA FOR PLAIN OF THE WOMEN IN THEIR CARE THE MEN CONTEND THE REMARKS HOWEVER OFFENSIVE WERE PROTECTED SPEECH THEY ALSO SAY THEIR EFFORTS TO APOLOGIZE WERE IGNORED BY THE UNIVERSITY UNTIL THEIR LAWYER INTERVENED THEY ARE NOW DEMANDING AN APOLOGY FROM THE UNIVERSITY COLUMBIA DECLINES COMMENT BEYOND SAYING THEIR DISMISSAL WAS PERFORMANCERELATED MOREOVER SOME COLLEGES TUFTS UNIVERSITY AND THE UNIVERSITY OF PENNSYLVANIA FOR EXAMPLE HAVE VOLUNTARILY RESCINDED SPEECH CODES AFTER CONCLUDING THEY WERE INEFFECTUAL DIVISIVE OR ILLEGAL TUFTS TOOK ACTION AFTER REBELLIOUS STUDENTS CHALKED OUT FREE SPEECH ZONES ON CAMPUS SIDEWALKS TO PROTEST THE CODES AND PENN CAME UNDER FIERCE PUBLIC SCRUTINY AFTER ITS SPEECH RULES WERE USED TO THREATEN A JEWISH STUDENT WITH EXPULSION AFTER HE CALLED A GROUP OF NOISY BLACK WOMEN WATER BUFFALO THE TERM WAS REGARDED AS RACIST BY A UNIVERSITY ADMINISTRATOR THOUGH THE STUDENT SAID IT SIMPLY WAS AN ENGLISH TRANSLATION OF A YIDDISH TERM FOR A DISRUPTIVE ILLMANNERED PERSON PENN RECENTLY DROPPED THE CASE ATOP THAT NUMEROUS GROUPS ACROSS THE POLITICAL SPECTRUM ARE COMING FORWARD TO DO BATTLE WITH SPEECH REGULATIONS OR CONDUCT CODES RACIALHARASSMENT POLICIES FOR EXAMPLE THAT THEY CONTEND ARE SOMETIMES SO BROADLY DRAWN THAT THEY IMPINGE UPON FREE SPEECH ONE GROUP IS THE CENTER FOR THE STUDY OF POPULAR CULTURE FOUNDED BY TWO DISAFFECTED 1960S RADICALS ITS GENERAL COUNSEL MR HOWARD DEFENDED THE UC RIVERSIDE FRATERNITY AND HAS ANOTHER 10 CASES IN VARIOUS STAGES OF LITIGATION OR NEGOTIATION THE CENTER FOR INDIVIDUAL RIGHTS A CONSERVATIVE WASHINGTON DC PUBLICINTEREST LAW FIRM HAS TAKEN ON A NUMBER OF CASES INCLUDING A RECENT SUCCESSFUL LAWSUIT ON BEHALF OF A SIGMA CHI FRATERNITY CHAPTER AT GEORGE MASON UNIVERSITY IN FAIRFAX VA THE GROUP HAD BEEN BARRED FROM CAMPUS AFTER HOLDING AN UGLY WOMAN CONTEST THAT OFFENDED CAMPUS FEMINISTS AND MINORITIES THE LIBERAL ACLU SAYS IT HAS BEEN INVOLVED IN DOZENS OF CHALLENGES TO CAMPUS SPEECH AND CONDUCT CODES IN RECENT YEARS ALUMNI AND STUDENTS ARE GATHERING FORCES AS WELL A GROUP CALLING ITSELF THE INTERCOLLEGIATE STUDIES INSTITUTE IS ORGANIZING CHAPTERS OF INFLUENTIAL CONSERVATIVE ALUMNI TO PRESSURE SCHOOLS YALE DUKE VASSAR AND STANFORD AMONG THEM INTO ROLLING BACK WHAT THEY CONTEND IS A WAVE OF POLITICAL CORRECTNESS INCLUDING NONTRADITIONAL CLASSES AND SPEECH CODES AND THE FIRST AMENDMENT COALITION A 300MEMBER STUDENT GROUP BASED IN GAINESVILLE FLA HAS ORGANIZED CHAPTERS AT FOUR IVY LEAGUE SCHOOLS INCLUDING PENN TO COMBAT WHAT COFOUNDER DAVE GENTRY CALLS THE NEW MCCARTHYISM FOMENTED BY SPEECH CODES SPEECH CODES GENERALLY AIMED AT PROHIBITING REMARKS JUDGED ABUSIVE OR THREATENING TO MINORITIES WOMEN AND HOMOSEXUALS GREW HAND IN HAND WITH THE INCREASINGLY DIVERSE ENROLLMENTS ON COLLEGE CAMPUSES IN THE 1980S A SOONTOBE PUBLISHED SURVEY BY THE FREEDOM FORUM FIRST AMENDMENT CENTER A NASHVILLE TENN PRESS FOUNDATION SAYS THAT 383 US PUBLIC COLLEGES AND UNIVERSITIES HAVE SOME FORM OF SPEECH REGULATION MOST CODES PROSCRIBE BEHAVIOR THREATS OF VIOLENCE FOR EXAMPLE THAT COURTS HAVE GENERALLY RULED MAY BE LEGALLY CURBED BUT MANY CODES ALSO CONTAIN PROVISIONS THAT LEGAL SCHOLARS SAY HAVE BEEN CONSISTENTLY STRUCK DOWN WHEN CHALLENGED ABOUT A THIRD FOR EXAMPLE BAN ADVOCACY OF OFFENSIVE OR OUTRAGEOUS VIEWPOINTS OR BIASED IDEAS AND SOME 15 ALSO PUNISH SPEECH CAUSING INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS THE SURVEY FOUND PROPONENTS ARGUE SPEECH CODES ARE NECESSARY TO PROTECT THE RIGHTS OF MINORITIES ON INCREASINGLY MULTICULTURAL CAMPUSES FROM A DEDICATED CORE OF CAMPUS BIGOTS INVARIABLY WHITE MEN WHO REMAIN IN CHRONIC REBELLION AGAINST THIS MULTICULTURAL WAVE BUT CRITICS HAVE SCORNED THE CODES AS MISGUIDED REGULATIONS THAT RUN AFOUL OF THE FIRST AMENDMENT WHILE SERVING TO REINFORCE RACIST OR HATEFUL ATTITUDES BY CHOKING OFF FREE SPEECH AND ROBUST DEBATE AND EPISODES LIKE THE ONE AT PENN ALONG WITH SPEECH CODES THAT HAVE MADE ILLTIMED LAUGHTER AMONG THE PUNISHABLE SINS HAVE LEFT THE CODES VULNERABLE TO RIDICULE STILL NO ONE THINKS THE PC MOVEMENT WHOSE MANIFESTATIONS INCLUDE MANDATORY DATERAPE COUNSELING FOR MEN ON SOME CAMPUSES IS GOING AWAY OVERNIGHT AND EVEN SOME CRITICS SAY THEY CAN SYMPATHIZE WITH ADMINISTRATORS CAUGHT BETWEEN THE DEMANDS OF INCREASINGLY SELFAWARE MINORITY WOMEN'S AND GAYRIGHTS GROUPS ON ONE HAND AND A RESPONSIBILITY TO FREE SPEECH ON THE OTHER BUT MANY CRITICS SAY SPEECH CODES AREN'T THE ANSWER A LOT OF LIBERALS WHO WOULD ORDINARILY HAVE BEEN BIG DEFENDERS OF FREE SPEECH NOW FEEL A CONFLICT SAYS ROBERT COLE PROFESSOR EMERITUS AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY'S LAW SCHOOL THE IDEA IS LET'S JUST SHUT THESE PEOPLE UP AND WE'LL GET EQUALITY YOU DON'T GET EQUALITY THAT WAY IRA GLASSER EXECUTIVE DIRECTOR OF THE ACLU AGREES WHILE THE GROUP HAS NO PROBLEM WITH NARROWLY DRAWN REGULATIONS THAT PROTECT PEOPLE AGAINST ACTUAL PHYSICAL HARASSMENT OR DEMONSTRABLE THREATS IT SEES THE UC RIVERSIDE CASE AS ANOTHER EXAMPLE OF PC RUN AMOK WHEN SOMEONE WEARS A TSHIRT THAT OTHERS FIND OFFENSIVE TOO BAD SAYS MR GLASSER THAT'S DIFFERENT FROM THREATENING INTIMIDATING OR SCARING SOMEONE THE UC RIVERSIDE FLAP IN FACT SEEMS A PRIME EXAMPLE OF HOW ATTEMPTING TO PLAY SPEECH COP BETWEEN DIVERSE GROUPS RESULTS IN A MESS THAT SOURS RELATIONS ALL AROUND FOR MOVIMIENTO ESTUDIANTIL DE CHICANA/OS DE AZTLAN AND LA UNION ESTUDIANTIL DE LA RAZA TWO HISPANIC STUDENT GROUPS THE SCENE ON PHI KAPPA SIGMA'S TSHIRT IMPLIED THAT ALL MEXICANS ARE LAZY BUMS ON THE BEACH ARGUES ROBERTO TIJERINA A MECHA COCHAIRMAN INCENSED THREE STUDENTS COMPLAINED TO KEVIN FERGUSON CAMPUSACTIVITIES DIRECTOR MR FERGUSON REPORTED THE CONFLICT TO THE SCHOOL'S INTERFRATERNITY COUNCIL AND TOLD PHI KAPPA SIGMA CHAPTER PRESIDENT RICK CORREZ TO BE READY TO DEFEND THE GROUP BEFORE A COUNCIL DISCIPLINARY BOARD IN THE FLICK OF A TOGA MOODS TURNED UGLY MR CORREZ SAYS A STUDENT WHO LOOKED HISPANIC STOPPED A FRATERNITY MEMBER WEARING THE SHIRT DEMANDED TO SEE IT AND PUSHED HIM WHEN HE TURNED TO LEAVE ANOTHER MEMBER SAYS HE HAD A TIRE SLASHED OBSCENE GRAFFITI APPEARED ON CAMPUS GROUNDS ACCUSING PHI KAPPA SIGMA OF RACISM MR CORREZ MET WITH HISPANIC GROUP MEMBERS TRYING TO MAKE AMENDS HE CITED THE FRATERNITY'S LARGE MINORITY MEMBERSHIP 22 OF ITS 47 MEMBERS MR TIJERINA WASN'T MOVED MECHA WANTED THE CHAPTER EXPELLED BY THEN THE WHEELS OF CAMPUS JUSTICE WERE IN MOTION THE CHAPTER AFTER BEING ORDERED TO APPEAR AT AN INTERFRATERNITY COUNCIL JUDICIAL BOARD HEARING WAS DISCIPLINED ON CHARGES OF VIOLATING THE HIGH MORAL AND SOCIAL STANDARDS OF THE GREEK COMMUNITY ON CAMPUS THEN VINCENT DEL PIZZO ASSISTANT VICECHANCELLOR OF STUDENT SERVICES WEIGHED IN HE CITED A HISTORY OF PHI KAPPA SIGMA OFFENSES RANGING FROM DRINKING AND LEWDNESS AS WELL AS THE RECENT INCIDENT WHICH IS IGNORANT INSENSITIVE AND CONSIDERED RACIST BY MANY CHICANO/A AND LATINO/A STUDENTS HE REVOKED UNIVERSITY RECOGNITION OF THE CHAPTER FOR THREE YEARS EFFECTIVELY BANNING IT AS A CAMPUS GROUP THE FRATERNITY ALREADY UNDER SANCTION FROM ITS NATIONAL OFFICE AND THE CAMPUS BOARD BEGAN LOOKING FOR HELP THE ACLU DECLINED CITING A HEAVY CASELOAD THAT IS WHEN MR HOWARD OF THE CENTER FOR THE STUDY OF POPULAR CULTURE ENTERED THE PICTURE AGREEING TO TAKE THE CASE FREE OF CHARGE IN A WEEK THE TWO SIDES HAMMERED OUT AN UNUSUAL SETTLEMENT UNIVERSITY RECOGNITION OF THE CHAPTER AN AGREEMENT NOT TO PUNISH IT BASED ON PAST CONDUCT PHI KAPPA SIGMA COMPLIANCE WITH SANCTIONS FROM ITS HEADQUARTERS AND FIRST AMENDMENT TRAINING FOR MESSRS DEL PIZZO AND FERGUSON THE TRAINING HAS BEEN SCHEDULED FOR JANUARY AND WHAT IT WILL ENTAIL ISN'T YET CLEAR ALTHOUGH MR FERGUSON SAYS HE ISN'T ANGRY HE SEEMS MIFFED AT HAVING TO SIT THROUGH A FIRST AMENDMENT CLASS SAYING THAT WHOEVER MADE THOSE DECISIONS APPARENTLY WASN'T AWARE HE ONCE TAUGHT US GOVERNMENT IN HIGH SCHOOLS MR DEL PIZZO DIDN'T RETURN REPEATED CALLS SEEKING COMMENT INDEED THE RESOLUTION HAS LEFT NO ONE HAPPY MECHA'S MR TIJERINA ALLOWS THE TSHIRT WAS A FORM OF PROTECTED SPEECH BUT SAYS IF IT WAS CAUSING A HOSTILE ENVIRONMENT HOW CAN YOU ALLOW THAT I THINK FREEDOM OF SPEECH IS BEING TWISTED OUT OF PROPORTION AND PHI KAPPA SIGMA IS TREADING CAREFULLY THE CHAPTER STILL HAS TO TAKE SENSITIVITY SESSIONS WHICH WILL BE TAUGHT BY A FORMER MEMBER OF MECHA MEMBERS AREN'T WEARING THE SHIRTS AND DON'T PLAN ANY PARTIES WITH ETHNIC THEMES NEXT UP ON THE SOCIAL CALENDAR A '70S BASH HOPEFULLY THAT WILL AVOID OFFENDING SOMEONE SAYS LEONARD HUERTA THE GROUP'S HISPANIC SOCIAL CHAIRMAN HE ADDS I WAS GOING TO HAVE A BUILDYOUROWNBURRITO NIGHT BUT NOW I WON'T EVEN DO THAT GO TO DEL TACO IF YOU WANT STILL MR CORREZ THE FRATERNITY'S PRESIDENT ASSERTS WE WON THE CASE AND WE CAN WEAR WHATEVER WE WANT SEE RELATED LETTER LETTERS TO THE EDITOR BIGOTRY TARGETS KNOW VALUE OF SPEECH CODES WSJ JAN 10 1994 SEE RELATED LETTER LETTERS TO THE EDITOR SPEECH CODES BIGOTRY AND FIRST AMENDMENT WSJ JAN 31 1994 9312220156 9401100162 YY94 MM01 9401310018 931228 LEISURE & ARTS BORED ON FIFTH AWAY FROM HOME TOGETHER BY SUSAN G HAUSER NEW YORK THERE ARE A FEW TIMES IN LIFE WHEN REALITY LIVES UP TO EXPECTATION FOR EXAMPLE I WON'T SOON FORGET MEETING THE CISCO KID AND PANCHO WHOSE BLACKANDWHITE TV SHOW I NEVER MISSED I WAS FIVE YEARS OLD AND THEY WERE AS WONDERFUL IN REAL LIFE AS ON THE SCREEN I WAS SO OVERWHELMED I BENT DOWN AND KISSED PANCHO'S BOOTS MY KIDS PROBABLY FELT SOMETHING AKIN TO MY GREATEST CHILDHOOD THRILL WHEN THEY STOOD FOR THE FIRST TIME IN THE LOBBY OF THE PLAZA FOR THEM THE SIGNIFICANCE OF THIS LEGENDARY HOTEL WAS NOT DUE TO ITS OWNERSHIP BY DONALD TRUMP OR EVEN ITS ROLE IN THE CHILDREN'S CLASSIC ELOISE NO MY KIDS ARE A LITTLE MORE UPTODATE THAN THAT THEY CAME TO THE PLAZA TO REPLICATE AS BEST THEY COULD THE EXPERIENCE OF MACAULAY CULKIN IN HOME ALONE 2 BUT BY EVENING MY YOUNGEST CHILD WAS IN TEARS AND THE OLDER ONE WAS SHUFFLING AROUND OUR SPACIOUS ROOM COMPLAINING OF ABJECT BOREDOM AS FOR ME I WAS IN A TRANCE STARING AT THE BILL FOR ROOM SERVICE AND REMEMBERING THAT IN THE MOVIE MACAULAY CULKIN SIGNED FOR EXPENSES MORE CHEERFULLY THAN I HAD WE HAD RESERVED A ROOM THAT COST APPROXIMATELY THE SAME AS ROUNDTRIP AIR FARE FROM OUR HOMETOWN OF PORTLAND ORE WE SHOWED UP EARLIER THAN CHECKIN TIME SO THEY GAVE US A FREE UPGRADE TO A ROOM THAT COST AS MUCH AS FIRSTCLASS AIR FARE FROM PORTLAND I HAD STUFFED MY POCKETS WITH DOLLAR BILLS IN ANTICIPATION OF FREQUENT TIPPING AND WAS ACTUALLY LOOKING FORWARD TO MAGNANIMOUSLY REWARDING A PLAZA BELLBOY MEANWHILE MY KIDS PLANNED TO SLIP THE GUY A STICK OF GUM JUST LIKE IN THE MOVIE BUT THE MAN AT THE DESK SAID HE GUESSED WE DIDN'T NEED HELP BECAUSE MY SON LOOKED SO STRONG TO PRESERVE THE LAD'S EGO I FORFEITED THE BELLBOY EXPERIENCE NEXT ON THE ITINERARY WAS TO FIND THE POOL THERE WAS NO POOL THEY MADE UP THE POOL SCENE FOR THE MOVIE AND I EVEN BOUGHT MY KIDS NEW SWIMSUITS JUST SO THEY WOULDN'T LOOK SHABBY IN THE PLAZA POOL OH WELL I WASN'T THE ONLY ONE A WOMAN IN THE GIFT SHOP TOLD ME THAT SINCE HOME ALONE 2 CAME OUT GUESTS ARE ALWAYS ASKING DIRECTIONS TO THE POOL AT LEAST OUR ROOM HAD ONE OF THOSE NEAT LITTLE REFRIGERATORS FULL OF SODA AND SNACKS ONCE THE KIDS WIPED OUT ALL THAT STUFF THERE WASN'T MUCH LEFT TO DO HOWEVER THERE JUST HAPPENED TO BE LONG VELVET BOLSTERS ON EACH BED SO THEY INVENTED A GAME CALLED SAUSAGE NINJAS AND BATTLED EACH OTHER BOISTEROUSLY UNTIL THEY WERE BORED THEY WATCHED TV FOR A WHILE THEN MY DAUGHTER DREW PICTURES UNTIL ALL THE PLAZA STATIONERY WAS USED UP ABOUT THAT TIME SHE STARTED POUTING AND COMPLAINING THAT OUR 500 ROOM DIDN'T MEASURE UP TO MACAULAY CULKIN'S MARVELOUS DIGS IN THE MOVIE I GUESS HE MUST HAVE HAD A ROOM THAT WAS WORTH SEVERAL ROUNDTRIP TICKETS TO PORTLAND I TOOK THE ELEVATOR DOWN TO THE LOBBY AND ASKED THE CONCIERGE IF THERE WAS ANYTHING ANYTHING AT ALL A CHILD COULD DO FOR ENTERTAINMENT AT THE PLAZA WHY YES SHE ASSURED ME IN FACT RIGHT AFTER HOME ALONE 2 CAME OUT LAST YEAR THE HOTEL OFFERED A SPECIAL PACKAGE FOR FAMILIES WITH YOUNG CHILDREN YEAH SO WHAT SORT OF FUN DID THEY OFFER KIDS YOU CAN TAKE YOUR CHILDREN OVER TO THE OTHER SIDE OF THE LOBBY AND LET THEM LOOK AT THE PORTRAIT OF ELOISE WELL OKAY I DECIDED TO TRY IT ANYTHING TO HELP MY CHILDREN RECOVER FROM THEIR DISAPPOINTMENT I ROUNDED THEM UP TOOK THEM DOWNSTAIRS AND STOOD THEM BEFORE THE LARGE OIL PAINTING OF ELOISE THE CHARACTER IN THE 1955 BOOK BY KAY THOMPSON ABOUT A LITTLE GIRL WHO LIVED AT THE PLAZA THIS IS SO MUCH FUN THEY SAID DRYLY THEN THEY TOOK UP THEIR MOPING WHERE THEY'D LEFT OFF BACK AT THE ROOM I TRIED TO INTEREST THEM IN ORDERING FROM ROOM SERVICE IT WAS SOMETHING THAT THEIR CINEMATIC HERO DID WITH GUSTO SO THEY QUICKLY WARMED TO THE IDEA CORY ORDERED PIZZA MERIWETHER ASKED FOR A CHILD'S CHEESEBURGER AND I GOT A STEAK ICE CREAM ALL AROUND FOR DESSERT IT ALL ADDED UP TO 135 I DECIDED I WILL SET MY KIDS UP IN FILM CAREERS BEFORE WE DO THAT AGAIN BY 11 PM CORY WAS ANNOUNCING WITH REGULARITY THAT HE WISHED HE WERE BACK IN PORTLAND MERIWETHER WAS WEEPING AND INSISTING THAT THE PLAZA COULDN'T POSSIBLY HAVE BEEN THE HOTEL IN THE MOVIE BECAUSE UNLIKE HER MACAULAY CULKIN HAD SO MUCH FUN HERE ALTHOUGH WE WERE ALREADY IN OUR PAJAMAS I TOLD THE KIDS TO GET DRESSED SO WE COULD GO LOOK FOR FUN WE WERE DESPERATE WE WALKED THROUGH THE LOBBY NOTHING THERE BUT A BUNCH OF GRIMLOOKING BELLBOYS IN GRAY LINED UP AGAINST THE WALL LIKE TAXI CABS WE WALKED BY THE PALM COURT TEA ROOM DESERTED NOW AFTER BURSTING AT THE SEAMS WITH PEOPLE ALL DAY LONG BEYOND THE GIFT SHOP ALSO CLOSED WE FOUND A MARBLE BANISTER IN THE SPIRIT OF ELOISE WE EACH SLID DOWN IT THINGS WERE LOOKING UP NEXT WE FOUND THE BALLROOM WE EXPLORED IT THOROUGHLY MERIWETHER FOUND A KIND OF SCOOTER AND TOOK IT FOR A SPIN ON THE DANCE FLOOR IN ONE OF THE SMALLER BANQUET ROOMS WE FOUND THE LEAVINGS FROM A BAR MITZVAH HELD EARLIER IN THE DAY THE KIDS SCAVENGED A BUNCH OF PARTY FAVORS AND HELIUM BALLOONS AND TOOK THEM BACK TO OUR ROOM THEY PLAYED WITH THEM UNTIL THEY FELL ASLEEP IN THE MORNING WE CLEARED OUT WITH ALACRITY THE KIDS HAD EXHAUSTED EVERY POSSIBILITY FOR FUN AT THE PLAZA AND THERE WAS NO REASON TO HANG AROUND NOW THEY'RE TELLING THEIR FRIENDS IT'S A LOUSY JOINT I MUST ADMIT THAT THE PLAZA DIDN'T LIVE UP TO MY EXPECTATIONS EITHER I WAS SURPRISED TO FIND LITTER ON THE FLOOR AND DISREPAIR IN OUR ROOM MAYBE I'D SEEN TOO MANY MOVIES TOO BUT IN SPITE OF OUR DISAPPOINTING EXPERIENCE I'M NOT THE ONE TO TELL MY CHILDREN THAT REALITY AIN'T ALL THAT IT'S CRACKED UP TO BE I'LL ENCOURAGE THEM TO KEEP TRYING TO FULFILL THEIR FANTASIES I STILL BELIEVE THE REAL AND THE IDEAL SOMETIMES MERGE BLAME IT ON CISCO AND PANCHO MS HAUSER IS A WRITER IN PORTLAND ORE SEE RELATED LETTERS LETTERS TO THE EDITOR NEW YORK IS WAITING BEYOND THE HOTEL DOOR WSJ JAN 31 1994 9312280005 YY94 MM01 9401280018 931229 QUICK OFF THE MARK SMALL MANUFACTURERS DISPLAY THE NIMBLENESS THE TIMES REQUIRE FIRMS LIKE SPARTAN MOTORS A CUSTOM CHASSIS MAKER CONTINUE HIRING PEOPLE ADAPTING TO BUYERS' WISHES BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL CHARLOTTE MICH FOR A MANUFACTURING WORKER PICKING THE RIGHT EMPLOYER IS CRITICAL IN TIMES OF DWINDLING JOB SECURITY IN THIS EMPLOYMENT SWEEPSTAKES DAVID SKIDMORE PICKED RIGHT AND HIS HIGHSCHOOL BUDDIES PICKED WRONG THE BUDDIES WENT TO WORK FOR GENERAL MOTORS CORP WHEN THEY GOT OUT OF SCHOOL 14 YEARS AGO LINKING UP WITH THE LARGEST INDUSTRIAL COMPANY IN THE COUNTRY MR SKIDMORE STAYED BEHIND AND HITCHED HIS FUTURE TO LITTLE SPARTAN MOTORS INC A FLEDGLING MAKER OF TRUCK CHASSIS WITH A FEW DOZEN EMPLOYEES WITHIN FIVE YEARS ALL FOUR OF THE FRIENDS WHO JOINED GM WERE LAID OFF BUT MR SKIDMORE HAS RISEN THROUGH SEVERAL PROMOTIONS FROM SPRAYPAINTER TO QUALITYCONTROL INSPECTOR WHILE SPARTAN MOTORS HAS THRIVED IN THE PAST FIVE YEARS ALONE IT HAS TRIPLED SALES AND INCREASED EMPLOYMENT SEVENFOLD IT NOW EMPLOYS ABOUT 460 WHILE LARGE MANUFACTURERS FILL THE NEWS PAGES WITH THEIR WAVES OF LAYOFFS MANY SMALL PRODUCERS IN A LESSNOTICED TREND HAVE BEEN CREATING MANUFACTURING JOBS AT A STEADY CLIP IN THE FIVE YEARS THROUGH 1992 THE 500 LARGEST INDUSTRIAL COMPANIES SHRANK THEIR COMBINED WORK FORCE BY 13 MILLION MANUFACTURERS WITH FEWER THAN 100 EMPLOYEES ADDED 483000 JOBS ACCORDING TO COGNETICS INC A CAMBRIDGE MASS ECONOMICRESEARCH FIRM EQUALLY REMARKABLE THIS 134 JUMP IN SMALLMANUFACTURER EMPLOYMENT EXCEEDED THE 113 JOB GROWTH OF THE SERVICE SECTOR LONG VIEWED AS THE FASTESTGROWING PART OF THE US ECONOMY LARGE MANUFACTURERS OF COURSE COULD STEP UP THEIR HIRING RAPIDLY IN A STRONG ECONOMIC RECOVERY IN ADDITION SOME AUTHORITIES ARGUE THAT MANY OF THE JOBS SMALL MANUFACTURERS CREATE ARE SHORTLIVED BECAUSE THESE COMPANIES ARE MORE LIKELY TO FAIL BUT THE MAJORITY OF EXPERTS WHO HAVE STUDIED THE ISSUE STICK WITH THE VIEW THAT THE SMALL MANUFACTURERS HAVE BEEN THE MOST PROLIFIC GENERATORS OF NEW JOBS ESPECIALLY IN THE PAST SEVERAL YEARS THIS ACCORDS WITH A FUNDAMENTAL SHIFT IN MANUFACTURING THAT PLAYS TO THE ADVANTAGES OF THE SMALL BIGGER WAS BETTER DURING THE LONG PERIOD OF ROBUST GROWTH AND LIMITED FOREIGN COMPETITION AFTER WORLD WAR II AND US INDUSTRY EMBRACED HIGHVOLUME LOWCOST MANUFACTURING METHODS AS IT STRAINED TO MEET DEMAND BUT NOW THE WORLD HAS A GLUT OF MASSPRODUCTION CAPACITY MUCH OF IT IS IN LOWCOST FOREIGN COUNTRIES FROM WHICH INEXPENSIVE LOOKALIKE GOODS POUR FORTH MEANWHILE DEMAND FOR PRODUCT DIVERSITY QUALITY AND SERVICE IS STRENGTHENING FOR MANUFACTURERS THIS PUTS A PREMIUM ON FLEXIBILITY AND RESPONSIVENESS AND REDUCES THE VALUE OF SIZE IN THE PRODUCTION OF RECYCLABLE PLASTIC FOOD CONTAINERS FOR EXAMPLE A FIRM CALLED ULTRA PAC INC HAS GROWN IN SIX YEARS TO 27 MILLION IN SALES AND A WORK FORCE OF 300 WHILE COMPETING AGAINST MOBIL CORP AND TENNECO INC USING SPECIALIZED EQUIPMENT THE ROGERS MINN COMPANY CAN TURN OUT 400 TO 500 DIFFERENT KINDS OF PACKAGING OFTEN CUSTOMIZED AND NORMALLY SHIP THEM WITHIN THREE DAYS OF AN ORDER ULTRA PAC CLAIMS THAT IS ABOUT ONETHIRD OF THE TIME IT USUALLY TAKES ITS LARGER COMPETITORS TO DELIVER OFFTHESHELF CONTAINERS WE SAW THAT IF WE REACTED AND MADE DECISIONS FASTER WE COULD GET A NICE CHUNK OF THE MARKET SAYS CALVIN KRUPA ULTRA PAC'S FOUNDER CHAIRMAN AND CHIEF EXECUTIVE ULTRA PAC'S BIGGER RIVALS SAY THAT THEY CAN SOMETIMES SHIP IN THREE DAYS ALSO FOR A SPECIAL REQUEST ON A STANDARD ITEM AT TENNECO'S PACKAGING CORP OF AMERICA UNIT IN EVANSTON ILL GARY MASSEL A VICE PRESIDENT CONCEDES THAT THERE'S NO QUESTION SMALL COMPANIES HAVE SHOWN A LOT OF LEADERSHIP IN FLEXIBILITY AND A LOT OF LARGER COMPANIES ARE FIGHTING TO CATCH UP HE ADDS THOUGH THAT OVER THE PAST THREE YEARS HIS COMPANY HAS REDUCED TO EIGHT HOURS FROM 21 HOURS THE TIME IT TAKES TO CHANGE EQUIPMENT TO PRODUCE A DIFFERENT KIND OF PACKAGING ANOTHER SMALL MANUFACTURER TECNOL MEDICAL PRODUCTS INC IN FORT WORTH TEXAS HAS HAD SIMILAR SUCCESS IN THIS CASE AGAINST MIGHTY MINNESOTA MINING & MANUFACTURING CO AND JOHNSON & JOHNSON BEGINNING IN 1987 TECNOL INTRODUCED A SERIES OF INNOVATIVE HOSPITAL MASKS THAT PROTECT AGAINST SPECIAL WORKPLACE HAZARDS INCLUDING A MASK WITH A CLEAR VISOR TO PROVIDE FACIAL PROTECTION AGAINST BLOODBORNE DISEASES IT TOOK J&J AND 3M MORE THAN A YEAR TO COME OUT WITH MODELS THAT COMPETED WITH TECNOL'S INNOVATIONS THOUGH A SPOKESMAN FOR J&J SAYS IT ULTIMATELY DEVELOPED SUPERIOR PRODUCTS TECNOL TODAY ACCOUNTS FOR HALF OF US HOSPITALMASK SALES ACCORDING TO THE MARKETRESEARCH UNIT OF DUN & BRADSTREET CORP SINCE 1989 TECNOL'S ANNUAL SALES HAVE MORE THAN DOUBLED TO A PROJECTED 85 MILLION THIS YEAR WHILE EMPLOYMENT HAS QUADRUPLED TO ABOUT 800 OF COURSE BIG IS BY NO MEANS ALWAYS BAD IN THE NEW MANUFACTURING ENVIRONMENT THE MARKETS FOR MASSPRODUCED GOODS REMAIN VAST AND IT MAY BE THAT ONLY GIANT DEEPPOCKETED CORPORATIONS CAN TAKE ON LARGE FOREIGN RIVALS IN SUCH GLOBAL MARKETS AS TELECOMMUNICATIONS EQUIPMENT AND PHARMACEUTICALS YET LARGE MANUFACTURERS EVERYWHERE ARE HACKING AWAY AT THEIR SIZE AND IN SOME CASES DECENTRALIZING IN PART TO ACQUIRE QUALITIES ALREADY POSSESSED BY SMALLER MANUFACTURERS THE GROWTH OF FIRMS SUCH AS TECNOL AND ULTRA PAC REPRESENTS AN INDUSTRIAL RESTRUCTURING THAT BODES WELL FOR AMERICAN COMPETITIVENESS SAYS DAVID AUDRETSCH A RESEARCH PROFESSOR AT WISSENSCHAFTSZENTRUM BERLIN A GERMAN THINK TANK WITH MASSPRODUCTION MARKETS UNDER RELENTLESS ASSAULT HE ADDS YOU NEED FIRMS THAT ARE MORE FLEXIBLE AND BETTER EQUIPPED TO SPECIALIZE AND INNOVATE THE US HAS MANY SMALL MANUFACTURERS THAT FIT THE BILL OFTEN LED BY ENTREPRENEURS WHO GOT THEIR IDEAS AT BIG COMPANIES GEORGE SZTYKIEL THE POLISHBORN FOUNDER CHAIRMAN AND CHIEF EXECUTIVE OF SPARTAN MOTORS SAYS HE STUDIED THE PROBLEMS OF MASS PRODUCTION FOR 18 YEARS WHILE SERVING AS AN ENGINEER IN CHRYSLER CORP'S TRUCK OPERATIONS MR SZTYKIEL PRONOUNCED STEEKEEUL SAYS THAT WHEN HE LEFT IN 1973 CHRYSLER WAS LOSING MONEY BUILDING 4000 TRUCK CHASSIS A YEAR WITH THE SAME HIGHVOLUME METHODS IT USED TO MAKE CARS A SPOKESMAN FOR CHRYSLER SAYS IT STOPPED MAKING CHASSIS USED FOR RECREATIONAL VEHICLES AND SIMILAR TRUCKS IN 1979 TO CONCENTRATE ON CARS HE DECLINES TO SAY WHETHER THE OPERATION HAD BEEN PROFITABLE WITH THE TRUCK MARKET FACING GROWING MANUFACTURING CAPACITY ESPECIALLY ABROAD MR SZTYKIEL FIGURED A COMPANY COULD THRIVE BY TAILORING PRODUCTS TO THE SPECIAL NEEDS OF CUSTOMERS WILLING TO PAY A PREMIUM SPARTAN WHICH HE FOUNDED IN 1975 NOW MAKES MORE THAN 4000 CHASSIS A YEAR FOR FIRE TRUCKS MOTOR HOMES BUSES AND OTHER SPECIALIZED VEHICLES IT FOCUSES MAINLY ON DESIGN AND FINAL ASSEMBLY PURCHASING 97 OF ITS PARTS ITS PLANTS HAVE NO AUTOMATED ASSEMBLY LINES WHICH MR SZTYKIEL SAYS PROMOTE STANDARDIZATION AT ITS FIRETRUCK FACTORY CHASSIS ARE PUSHED BY HAND THROUGH A SERIES OF TWOPERSON CUSTOM WORK STATIONS ARRANGED TO PERMIT CONTINUOUS ASSEMBLY OF DIFFERENT CHASSIS TYPES ONE MAY REQUIRE A 300HORSEPOWER CUMMINS ENGINE WITH FOURSPEED TRANSMISSION AND A TWOMAN CAB WHILE THE NEXT TAKES A 450HORSEPOWER ENGINE FROM DETROIT DIESEL CORP WITH FIVESPEED ELECTRONIC TRANSMISSION AND A GIANT 10PERSON CAB WE DON'T HAVE TO SHUT DOWN THE PLANT TO CHANGE TOOLS AND PRODUCTION FIXTURES SAYS WILLIAM COURTNEY OPERATIONS DIRECTOR WE JUST TAKE THE NEW SPECIFICATIONS IN STRIDE AND GO RIGHT ON BUILDING THE TRUCK SPARTAN'S GLADIATOR LINE OFFERS AT LEAST 300 OPTIONS 10 OR SO TRANSMISSIONS MORE THAN A DOZEN ENGINES AND A CHOICE OF 30 REARAXLE AND SUSPENSION SYSTEMS THERE ARE 45 STYLES OF CABS SOLD SO FAR IN 57 DIFFERENT SHADES OF RED SUCH CHOICES APPEAL TO FIRE CHIEFS' TASTES AS WELL AS THEIR NOTION OF THE BEST COMBINATION OF FIRETRUCK FEATURES NOTES THOMAS KNIAZ A CHIEF IN DETROIT'S FIRE DEPARTMENT HE SAYS SPECIALLY BUILT CHASSIS LAST LONGER BECAUSE THE MODIFICATIONS THAT STANDARD ONES NEED TO ACCOMMODATE FIRETRUCK APPARATUS INCREASE THE CHANCES OF A BREAKDOWN LAST YEAR SPARTAN'S SALES ROSE 31 TO 124 MILLION AND ITS NET INCOME JUMPED 41 TO 92 MILLION JEFFREY VILLWOCK AN ANALYST AT NEW ORLEANS SECURITIES FIRM JOHNSON RICE & CO ESTIMATES 1993 SALES WILL RISE 37 AND EARNINGS 18 ALTHOUGH EARNINGS SLIPPED 17 IN THE THIRDQUARTER THE REASONS APPEAR TEMPORARY LASTMINUTE DESIGN CHANGES TO TWO LARGE ORDERS PERFORMANCE PROBLEMS ON A NOVEL MOTORHOME CHASSIS DESIGN AND DISCOUNTING TO CLEAR OUT AN OLD LINE OF RV CHASSIS SPARTAN EXPECTS TO CONTINUE HIRING INCREASING ITS EMPLOYMENT NEXT YEAR TO ABOUT 500 OR 550 FROM THE CURRENT 460 A PRUDENTIAL SECURITIES INC ANALYST IN SAN FRANCISCO STEVEN COLBERT SEES SPARTAN'S 1994 NET INCOME RISING 34 ONE CHALLENGE SPARTAN FACES IS HOLDING DOWN PRICES ITS COSTLIEST FIRETRUCK CHASSIS CAN RUN MORE THAN 100000 DOUBLE WHAT A MASSPRODUCED ONE COSTS FIRE DEPARTMENTS' HEIGHTENED COSTCONSCIOUSNESS HAS DAMPED DEMAND FOR THE PAST TWO YEARS SAYS JOHN SZTYKIEL MR SZTYKIEL'S 36YEAROLD SON AND SPARTAN'S PRESIDENT HE SAYS SPARTAN WILL SOON ROLL OUT A LINE OFFERING FEWER OPTIONS IT STILL WILL BE TAILORED FOR FIRE TRUCKS THOUGH WITH FEATURES SUCH AS SMALLER TIRES TO ELIMINATE WHEEL WELLS IN THE CAB FLOOR THE LAST TIME SPARTAN COMBINED CUSTOMIZATION WITH LOWER COST IT PRODUCED A MOTORHOME CHASSIS THAT TURNED INTO ITS TOPSELLING PRODUCT THE REARENGINE DIESEL WAS DESIGNED TO COMPETE WITH THE FRONTENGINE GASOLINE CHASSIS THAT DOMINATED THE RV MARKET WHILE REARENGINE DIESEL CHASSIS HAVE ALWAYS BEEN QUIETER COOLER AND SMOOTHERRIDING THEY HAD COST UP TO 15000 MORE SPARTAN MANAGED TO MAKE ONE THAT NEARLY HALVED THE PRICE PREMIUM TURNING OUT CUSTOM CHASSIS THAT USE A WIDE VARIETY OF PARTS MAKES FOR TRICKY RELATIONS WITH SUPPLIERS OF WHICH SPARTAN HAS 900 SPARTAN WILL ACCEPT DESIGN CHANGES FROM RV CUSTOMERS UP TO 10 DAYS BEFORE THE START OF PRODUCTION THERE ARE TIMES WE'VE HAD TO GO ON OUR HANDS AND KNEES BEGGING FOR PARTS WE NEEDED IN A WEEK OR JUST A FEW DAYS SAYS LYNWOOD BREHM PURCHASING DIRECTOR TO ENSURE PROMPT PARTS DELIVERY THE ELDER MR SZTYKIEL HE IS 64 PERSUADED CUMMINS ENGINE CO OF COLUMBUS IND TO PICK UP THE COST OF STORING INVENTORY AT A WAREHOUSE NEXT TO SPARTAN'S MICHIGAN PLANT SIMILARLY 61 SUPPLIERS OF FASTENERS AND ADHESIVES LAST YEAR AGREED TO STOCK ANOTHER CLOSEBY WAREHOUSE FROM WHICH THEY MAKE DAILY DELIVERIES SPARTAN'S RESPONSIVENESS REQUIRES LINES OF COMMUNICATION TO BE TAUT RATHER THAN TRYING TO SOLVE DESIGN PROBLEMS ON PAPER ENGINEERS HUDDLE WITH PRODUCTION WORKERS ON THE FACTORY FLOOR TESTING IDEAS ON THE EQUIPMENT ITSELF EVEN PURCHASINGSTAFF MEMBERS MUST SPEND TIME IN THE PLANT TWO HOURS A WEEK OBSERVING AND TALKING TO WORKERS I WANT THEM TO GET TO KNOW THE PRODUCTS AND HOW THEY'RE APPLIED SO THEY HAVE A WORKING KNOWLEDGE OF WHAT THEY'RE BUYING MR BREHM SAYS SALESPEOPLE HAVE DIRECT ACCESS TO THE DESIGN PROCESS HELPING THEM TO RESPOND TO CUSTOMER DEMANDS PROMPTLY LAST YEAR A CALIFORNIA FIRM TOLD DON ARMSTRONG SPARTAN'S SALES CHIEF IN SEATTLE THAT IT WANTED AN EXTRA ENGINE STARTER SWITCH INSTALLED IN THE BACK OF A MOTORHOME CHASSIS IT HAD ORDERED WHEN MR ARMSTRONG CALLED IN THE SPECIAL REQUEST HE SAYS MR SZTYKIEL'S SON TOOK THE CALL AND APPROVED THE CHANGE ON THE SPOT AT NO CHARGE THE SAME NIMBLENESS HELPS SPEED NEW PRODUCTS TO MARKET UNTIL 1992 MR ARMSTRONG SOLD CHASSIS FOR SPARTAN COMPETITOR OSHKOSH TRUCK CORP HE SAYS DESIGN CHANGES AT THE WISCONSIN COMPANY SOMETIMES TOOK EIGHT TO NINE MONTHS THUS HE SAYS HE SHOULDN'T HAVE BEEN SURPRISED IN LATE 1990 AT A TRADE SHOW IN LOUISVILLE KY BY SPARTAN'S UNVEILING OF A MOTORHOME CHASSIS THAT OSHKOSH WAS STILL DEVELOPING WE AT OSHKOSH WERE CAUGHT WITH OUR PANTS DOWN MR ARMSTRONG SAYS AND SUDDENLY OSHKOSH THEN THE LEADING MAKER OF REAREND DIESEL CHASSIS WAS RUNNING SECOND RON ZIEBEL OSHKOSH VICE PRESIDENT AND GENERAL MANAGER OF COMPONENTS SAYS THE TRUCK MAKER IN 1989 DIVIDED ITSELF INTO BUSINESS UNITS CORRESPONDING WITH ITS PRODUCT LINES IN RECOGNITION THAT EVERYBODY WANTS STRONGER FOCUS ON CUSTOMER RESPONSE AND CUSTOMER INPUT HE SAYS THE COMPANY WILL INTRODUCE THIS YEAR AT THE SAME LOUISVILLE TRADE SHOW NEW PRODUCTS THAT TOOK ONLY FOUR MONTHS TO DEVELOP SEE RELATED LETTER LETTERS TO THE EDITOR MOBILEVER NIMBLE WSJ JAN 28 1994 9312290142 YY94 MM01 9401260128 931222 YOUR MONEY MATTERS TAPPING YOUR RETIREMENT ASSETS IRA WITHDRAWALS ARE GOVERNED BY COMPLEX IRS RULES BY DEBORAH LOHSE STAFF REPORTER OF THE WALL STREET JOURNAL RETIREES DRILLING FOR INCOME IN THEIR INDIVIDUAL RETIREMENT ACCOUNTS NEED TO DO SOME PRELIMINARY PROSPECTING CHANCES ARE MOST CORPORATE WORKERS WILL WIND UP WITH ONE OR MORE IRAS BY THE TIME THEY CALL IT QUITS RETIREMENT ADVISERS SAY FREQUENTLY RETIRING WORKERS SET UP IRAS TO KEEP FUNDS THEY ROLL OVER FROM 401KS PROFITSHARING OR PENSION PLANS TAXDEFERRED AS LONG AS POSSIBLE THEY ALSO MAY HAVE FUNDED ONE OR MORE IRAS BY STASHING AS MUCH AS 2000 A YEAR INTO ACCOUNTS WITH BANKS BROKERAGE FIRMS OR MUTUALFUND COMPANIES IN RETIREMENT MANY PEOPLE WILL NEED OR WANT TO DIP INTO THOSE ACCOUNTS KNOWING WHICH IRAS TO TAP FIRST HOW MUCH MONEY TO TAKE OUT AND HOW IT WILL BE TAXED REQUIRES CONSIDERABLE TIME AND ATTENTION THE TAX RULES AND OPTIONS VARY DEPENDING ON WHETHER A RETIREE IS TAPPING THE ACCOUNT BEFORE TURNING AGE 59 1/2 AFTER AGE 70 1/2 OR SOMETIME IN BETWEEN THOSE IN THE MIDDLE TYPICALLY HAVE THE MOST FREEDOM THEY CAN WITHDRAW ANY AMOUNT THEY CHOOSE OR LEAVE THE MONEY TO CONTINUE GROWING TAXDEFERRED FOR WITHDRAWALS THE BASIC RULE IS THAT MONEY TAKEN OUT OF AN IRA IS GENERALLY SUBJECT TO FEDERAL TAX AT ORDINARY INCOME TAX RATES OF UP TO 396 AND PROBABLY STATE AND LOCAL INCOME TAXES AS WELL THE BIG EXCEPTION IS MONEY CONTRIBUTED TO AN IRA WITH AFTERTAX DOLLARS IF A RETIREE CONTRIBUTED MONEY THAT HAD ALREADY BEEN TAXEDTHROUGH WHAT IS KNOWN AS A NONDEDUCTIBLE CONTRIBUTION SOME PORTION OF ANY WITHDRAWALS WILL BE NONTAXABLE FIGURING OUT HOW MUCH CAN BE DEVILISH BECAUSE THE INTERNAL REVENUE SERVICE REQUIRES A RETIREE WITH SEVERAL IRAS TO TREAT THEM COLLECTIVELY AS ONE BIG PURSE IT ISN'T POSSIBLE TO MINIMIZE THE TAX BITE BY WITHDRAWING ONLY FROM AN ACCOUNT THAT HAS A HIGH PROPORTION OF ALREADYTAXED MONEY INSTEAD ANY TIME A RETIREE MAKES WITHDRAWALS FROM ANY IRA THE PERSON MUST PRORATE THE PORTION OF THE WITHDRAWAL THAT ISN'T TAXED YOU DO THIS BY USING A RATIO THAT DIVIDES YOUR TOTAL NONDEDUCTIBLE CONTRIBUTIONS BY THE TOTAL BALANCE IN ALL YOUR ACCOUNTS COMBINED ASSUME FOR INSTANCE THAT A RETIREE WANTED TO WITHDRAW 1000 FROM ONE OF TWO IRAS IRA A COMPOSED OF 50000 OF PRETAX CONTRIBUTIONS AND 10000 OF EARNINGS OR IRA B MADE UP OF 10000 OF NONDEDUCTIBLE CONTRIBUTIONS AND 5000 OF EARNINGS EVEN IF THE PERSON WITHDREW 1000 FROM IRA B THE 1000 WOULD BE TAXABLE AT A RATIO OF 10000/75000 THUS 867 WOULD BE TAXABLE 133 WOULD BE NONTAXABLE RETIREES WHO ARE OLDER OR YOUNGER THAN THE GANG IN THE MIDDLE HAVE OTHER HOOPS TO JUMP THROUGH IN ORDER TO TAKE FROM THEIR IRAS IN PEACE EARLY RETIREES THOUGH MIGHT HAVE MORE FREEDOM THAN THEY THINK TO TAKE WHAT THEY NEED FROM THEIR IRAS CONSIDER RICHARD HENDRICKS 57 WHO RETIRED TWO YEARS AGO FROM CONSUMERS POWER CO A JACKSON MICH UTILITY COMPANY AT THAT TIME HE TRANSFERRED THE 147400 BALANCE IN HIS 401K INTO A TAXDEFERRED IRA WHICH HE THEN WANTED TO TAP IMMEDIATELY NORMALLY WITHDRAWALS BY RETIREES UNDER THE AGE OF 59 1/2 WOULD GET ZAPPED BY A 10 IRS PENALTY FOR EARLY DISTRIBUTIONS HOWEVER WITH THE AID OF HIS FINANCIAL PLANNER KIMO ANDREWS FROM IDS FINANCIAL SERVICES IN MOUNT PLEASANT MICH MR HENDRICKS BEGAN TAKING PAYOUTS CALCULATED AS IF HE WERE GOING TO RECEIVE SUBSTANTIALLY EQUAL SUMS EACH YEAR FROM THE IRA OVER A COMBINATION OF HIS AND HIS WIFE'S LIFETIME THE RESULT HE RECEIVES 900 A MONTH AND AVOIDS THE 10 PENALTY AND THE PAYMENTS DON'T HAVE TO LAST THE TWO LIFETIMES AFTER ALL SUCH PERIODIC PAYMENTS TO EARLY RETIREES HAVE TO CONTINUE ONLY FOR FIVE YEARS OR UNTIL THE RETIREE TURNS 59 1/2 WHICHEVER IS LONGER AFTER FIVE YEARS THEN MR HENDRICKS CAN STOP THE PAYMENTS ALTER THEM OR CONTINUE THEM AS NEEDED BY FIDDLING WITH SOME ASSUMPTIONS MR HENDRICKS COULD HAVE RECEIVED MORE OR LESS INCOME AND STILL HAVE AVOIDED THE 10 PENALTY NOTES MR ANDREWS IN SETTING UP THE SUBSTANTIALLY EQUAL PAYMENTS IRS RULES ALLOWED HIM TO PROJECT HOW MUCH THE IRA WOULD BE WORTH IN FUTURE YEARS FACTORING IN ANY REASONABLE ASSUMPTION FOR THE RATE OF RETURN ON THE ACCOUNT IRS GUIDELINES WOULD HAVE PERMITTED ASSUMPTIONS FROM 5 TO 9 SAYS MR ANDREWS TO ARRIVE AT 900 A MONTH MR ANDREWS USED A 7 ASSUMPTION IF HE HAD USED A 5 ESTIMATE MR HENDRICKS WOULD HAVE GOTTEN 800 A MONTH WITH 9 1081 A MONTH RETIREES OVER AGE 70 1/2 HAVE THEIR OWN IRS RULES TO FOLLOW TO BEGIN WITH THEY ARE REQUIRED TO WITHDRAW A MINIMUM PERCENTAGE OF ALL THEIR IRAS BY APRIL 1 OF THE YEAR AFTER THEY TURN 70 1/2 IF THEY DON'T THEY FACE A 50 PENALTY TAX ON THE AMOUNT REQUIRED BUT NOT DISTRIBUTED SOME WIGGLE ROOM SUCH RETIREES DO HOWEVER HAVE SOME MANEUVERING ROOM IF THEY WANT TO KEEP THE REQUIRED MINIMUM PAYMENTS AS LOW AS POSSIBLE ADVISERS POINT OUT TO FIGURE THEIR MINIMUM DISTRIBUTIONS SUCH RETIREES MUST ESSENTIALLY DIVIDE ALL THEIR IRA BALANCES BY THE NUMBER OF YEARS IRS TABLES TELL THEM THEY ARE LIKELY TO LIVE TO REDUCE THE RESULTING PAYOUT RETIREES CAN SPREAD THE PAYMENTS OVER NOT JUST THEIR OWN LIFE SPAN BUT ALSO A BENEFICIARY'S EVEN IF THE TWO PEOPLE ARE THE SAME AGE A JOINT LIFE EXPECTANCY WILL WORK OUT ACTUARIALLY LONGER THAN A SINGLE ONE FREQUENTLY THE BENEFICIARY WOULD BE THE SPOUSE IF IT'S A CHILD OR OTHER MUCHYOUNGER BENEFICIARY THE JOINTLIFE EXPECTANCY CAN BE STRETCHED ONLY AS IF THE CHILD WERE 10 YEARS YOUNGER NO MORE ANOTHER WAY TO LESSEN THE REQUIRED MINIMUM DISTRIBUTIONS IS BY USING THE SOCALLED RECALCULATION METHOD TO COMPUTE YOUR LIFE EXPECTANCY FOR EXAMPLE TWO 70YEAROLDS HAVE A JOINT LIFE EXPECTANCY OF 206 YEARS IF ONE OF THEM HAD TO FIGURE A MINIMUM REQUIRED PAYOUT FROM AN IRA OVER THEIR JOINT LIFETIME THE ACCOUNT HOLDER WOULD DIVIDE THE ACCOUNT BALANCE AS OF DEC 31 OF THE PRIOR YEAR BY 206 LOGIC WOULD INDICATE THAT THE FOLLOWING YEAR THE RETIREE WOULD DIVIDE THE ACCOUNT BALANCE BY 196 SINCE THEY BOTH WERE A YEAR OLDER BY USING THE RECALCULATION METHOD HOWEVER SUCH A RETIREE WOULD DIVIDE BY A LARGER NUMBER 198 YEARS REFLECTING THE COUPLE'S LONGER LIFE EXPECTANCY ONCE THEY REACH AGE 71 THIS RESULTS IN A SMALLER REQUIRED IRA WITHDRAWAL AS THE TWO PEOPLE GOT OLDER LIFE EXPECTANCIES EXTEND EVEN MORE DRASTICALLY THE RECALCULATION CAN BE BASED ON AN INDIVIDUAL'S OWN LIFE EXPECTANCY OR ON THE JOINT LIFE EXPECTANCY OF THE ACCOUNT HOLDER AND THE SPOUSE OR OTHER BENEFICIARY IF AN ACCOUNT HOLDER BASES THE RECALCULATION ON THE INDIVIDUAL'S OWN LIFE EXPECTANCY IT CAN CAUSE PROBLEMS FOR HEIRS THEY WOULD HAVE TO RECEIVE THE FULL BALANCE OF THE ACCOUNT BY THE END OF THE YEAR FOLLOWING THE ACCOUNT HOLDER'S DEATH SAYS STEVEN NORWITZ VICE PRESIDENT AT T ROWE PRICE ASSOCIATES ADVISERS CAUTION COUPLES WHO USE RECALCULATION THAT WHEN ONE OF THEM DIES THE SIZE OF THE PAYMENTS WILL HAVE TO BE INCREASED BEGINNING THE FOLLOWING YEAR SO THAT THE REMAINDER IN THE ACCOUNT WILL BE PAID OUT OVER THE SURVIVOR'S LIFETIME ANOTHER METHOD AN ALTERNATIVE TO THE RECALCULATION METHOD THAT PRODUCES SLIGHTLY HIGHER MINIMUM PAYOUTS IS THE TERM CERTAIN METHOD WITH THIS METHOD RETIREES SIMPLY REDUCE THE LIFEEXPECTANCY FIGURE BY ONE YEAR EACH YEAR ONE ADVANTAGE IS THAT IF ONE SPOUSE DIES THE PAYMENTS WOULD CONTINUE ON THE TERMCERTAIN SCHEDULE FOR THE SURVIVOR EVEN IF YOU ACTUALLY NEED MORE THAN THE MINIMUM TO LIVE ON SOME ADVISERS SAY YOU SHOULD COMMIT YOURSELF TO TAKING ONLY THE REQUIRED MINIMUM PAYMENTS AND THEN WITHDRAW MORE AT YOUR DISCRETION TO HAVE THE MOST FLEXIBILITY YOU WANT TO TAKE THE LOWEST REQUIRED MINIMUM DISTRIBUTION SAYS DEAN MCGILL A FINANCIAL PLANNER WITH IDS FINANCIAL SERVICES IN SAN FRANCISCO YOU CAN ALWAYS WITHDRAW MORE AS YOU NEED IT PEOPLE WHO HAVE MADE NONDEDUCTIBLE CONTRIBUTIONS TO INDIVIDUAL RETIREMENT ACCOUNTS FACE HEADACHES WHEN THEY START WITHDRAWALS HERE'S HOW A HYPOTHETICAL RETIREE WITH TWO IRAS WOULD FIGURE THE TAX ON A 1000 WITHDRAWAL FROM EITHER ACCOUNT EACH ACCOUNT ACCOUNTS SEE RELATED LETTER LETTERS TO THE EDITOR IRA WITHDRAWALS WSJ JAN 26 1994 9312220132 YY94 MM01 9401260085 931229 REVIEW & OUTLOOK EDITORIAL THE DIVERSITY STANDARD LIBERAL WRITERS AND ACADEMICS HAVE GOT THEMSELVES INTO A FRENZY OF LATE OVER THE DEGREE TO WHICH THE TERM POLITICAL CORRECTNESS HAS MADE ITS WAY INTO POPULAR USE THEY HAVE CAUSE FOR UPSET SINCE REFERENCES TO POLITICAL CORRECTNESS HAVE SWEPT THE NATION TESTIMONY TO AN UNDENIABLE POPULAR AWARENESS OF THE ZEALOTRY THE PHRASE SO USEFULLY DESCRIBES ANYONE WHO STILL BELIEVES THAT POLITICAL CORRECTNESS IS AN IMAGINED THREAT SHOULD HAVE A LOOK AT WHAT A UNIVERSITY ACCREDITING BODY IS PROPOSING IN CALIFORNIA THE WESTERN ASSOCIATION OF SCHOOLS AND COLLEGES OTHERWISE KNOWN AS WASC IS THE ACCREDITING ORGANIZATION FOR ALL UNIVERSITIES AND COLLEGES IN CALIFORNIA HAWAII AND GUAM ACCREDITATION MEANS NOTHING LESS THAN A SCHOOL'S CERTIFICATION AND PROOF THAT ITS DEGREE IS WORTH SOMETHING AS OPPOSED TO THAT OF A DIPLOMA MILL WITHOUT IT A SCHOOL CAN'T GET GOVERNMENT MONEY FOR STUDENT LOANS AND THE LIKE WASC IS NOW PROPOSING THAT SCHOOLS MEET A NEW DIVERSITY STANDARD ARGUING THAT DIVERSITY IS AN ESSENTIAL ELEMENT OF ACADEMIC DISCIPLINE IN TRUTH DIVERSITY IS A WORD PROPERLY ASSOCIATED WITH INTELLECTUAL LIFE AS IN DIVERSITY OF IDEAS BUT WHAT THE WASC'S LEADERSHIP HAS IN MIND IS DIVERSITY OF PEOPLE GENDER SEXUAL PREFERENCE THE DISTRIBUTION OF THE RIGHT NUMBER OF WOMEN AND RACES WASC EXECUTIVE DIRECTOR STEPHEN WEINER WHO DID NOT RETURN CALLS HAS ANNOUNCED THAT DIVERSITY IS INEXTRICABLY LINKED TO QUALITY IN HIGHER EDUCATION IN SHORT UNLESS A SCHOOL SHOWS THAT IT SUBSCRIBES TO THIS SUDDENLY DISCOVERED DOGMA WASC'S ACCREDITORS WOULD NOT CONSIDER IT A SCHOOL THAT COULD PROVIDE A QUALITY EDUCATION TRADITIONALLY ACCREDITATION AGENCIES SUCH AS WASC SEND IN VISITING TEAMS WHICH WRITE OFFICIAL REPORTS HERE THE TEAM CONSISTS OF COMMITTED DIVERSITY SHOCK TROOPS WHO ARRIVE LOOKING FOR GRIEVANCES AMONG WOMEN OR MINORITY GROUPS WASC'S WAY OF DISCIPLINING SCHOOLS THAT DON'T CONFORM TO ITS IDEOLOGICAL GRAND DESIGNS HAS ALREADY BEEN MADE AMPLY CLEAR IN ITS DEALINGS IN 1990 WITH WESTMINSTER THEOLOGICAL SEMINARY THIS SMALL PRESBYTERIAN INSTITUTION NEAR SAN DIEGO WAS PLACED ON PROBATION WHEN WASC'S DIVERSITY INSPECTORS DETERMINED THAT ITS ALLMALE ALLCAUCASIAN BOARD OF TRUSTEES WAS OUT OF LINE WITH COMMISSION STANDARDS THE SCHOOL MANAGED TO GET ITSELF REACCREDITED BY COMING TO AN ACCOMMODATION WITH WASC WE'LL LEAVE ASIDE FOR NOW WHAT THIS DOGMA MEANS FOR BLACK AND ALLWOMEN SCHOOLS WHICH MANY YOUNGSTERS FIND TO BE IDEAL PLACES TO SPEND THEIR FORMATIVE YEARS AS IT HAPPENS THIS IS NOT THE FIRST EFFORT TO ENFORCE POLITICAL CORRECTNESS WITH THE ACCREDITATION CLUB IN 1990 THE MIDDLE STATES ASSOCIATION OF COLLEGES AND SCHOOLS DECIDED TO DEFER ITS REACCREDITATION OF NEW YORK'S ESTEEMED BARUCH COLLEGE BECAUSE THE DIVERSITY POLICE CHARGED THE SCHOOL HAD SHOWN INADEQUATE CONCERN FOR MULTICULTURALIST GOALS WHILE THE SCHOOL SHORTLY WON REACCREDITATION THANKS TO A GREAT PUBLIC HUE AND CRY MIDDLE STATES' ACTIVITIES HAD COME TO THE ATTENTION OF MR BUSH'S EDUCATION SECRETARY LAMAR ALEXANDER WHO SENT A MESSAGE THAT DIVERSITY AND SIMILAR IDEOLOGICAL PREOCCUPATIONS HAD NO PLACE IN THE ACCREDITATION PROCESS MIDDLE STATES FOUND ITS OWN CREDENTIALS THREATENED UNTIL IT AGREED TO AN ARRANGEMENT WHEREBY IT SHOWED IN ANNUAL REPORTS THAT IT UNDERSTOOD THIS THE DIVERSITY INSPECTORS HAVE REAPPEARED IN THE HOPE THAT A DEMOCRATIC ADMINISTRATION AND ITS NEW EDUCATION SECRETARY RICHARD RILEY WILL TAKE MORE KINDLY TO THEIR EFFORTS IN CALIFORNIA THOUGH WASC HAS RUN INTO PRINCIPLED OPPOSITION FROM ADMINISTRATORS AND FACULTY OF NUMEROUS COLLEGES AND UNIVERSITIES AMONG THEM UCLA PEPPERDINE CLAREMONTMCKENNA THE NATIONAL ASSOCIATION OF SCHOLARS IS ALSO IN THE BATTLE LEADING THE OPPOSITION WE FIND LITTLE AQUINAS COLLEGE OF SANTA PAULA A PRIVATE CATHOLIC COLLEGE DEDICATED TO THE GREAT BOOKS TRADITION AQUINAS REFUSES TO MAKE DISTINCTIONS OF ANY KIND ON GROUNDS OF RACE AND SO WOULD NOT ARRANGE A SPECIAL MEETING SO THAT WASC TEAM MEMBERS COULD ADDRESS GRIEVANCES BY MINORITY STUDENTS DESPITE ITS UNYIELDING RESISTANCE OR POSSIBLY BECAUSE OF IT AQUINAS COLLEGE MANAGED TO GET ACCREDITED BUT IT HAS CONTINUED TO LEAD THE FIGHT AGAINST THE DIVERSITY INITIATIVE PROFESSOR RICHARD FERRIER THE SCHOOL'S POINT MAN IN THE BATTLE EXPLAINED JUST BECAUSE THE NAZIS DIDN'T TAKE SWITZERLAND DIDN'T MEAN THEY DIDN'T INTEND TO TAKE ALL OF EUROPE AS SOON AS THEY COULD THE WESTERN ASSOCIATION DENIES THAT IT INTENDS TO FORCE COLLEGES TO SUBMIT TO ITS STANDARDS IN ORDER TO WIN ACCREDITATION BUT ITS STANCE SAYS OTHERWISE IN FEBRUARY WASC WILL LIKELY VOTE FORMALLY TO ADOPT THE DIVERSITY STANDARD COLLEGES AND UNIVERSITIESALREADY LIVING IN AN ATMOSPHERE BLIGHTED BY CENSORSHIP SPEECH CODES QUOTA HIRING AND OTHER SYMPTOMS OF POLITICAL CORRECTNESS WILL BE WAITING TO SEE WHETHER EDUCATION SECRETARY RILEY WILL QUASH WASC'S EFFORTS WE'LL HOPE HE'LL DO AS MUCH FOR ACADEMIC FREEDOM AS MR ALEXANDER DID SEE RELATED LETTER LETTERS TO THE EDITOR ETHNIC DIVERSITY AND ACCREDITATION WSJ JAN 26 1994 9312290082 YY94 MM01 9401260080 931217 FEDERAL EXPRESS PICKS HUB AT PEROTOWNED AIRPORT MEMPHIS TENN FEDERAL EXPRESS CORP IN A MOVE THAT COULD BOOST THE FORTUNES OF A PROJECT LINKED TO THE FAMILY OF ROSS PEROT SAID IT PICKED ALLIANCE AIRPORT IN FORT WORTH TEXAS AS THE SITE FOR A SOUTHWESTERN HUB THE EXPRESSDELIVERY CONCERN SAID THE 158ACRE SITE IS BEING PURCHASED FROM ALLIANCE AIRPORT LTD WHICH IS CONTROLLED BY ROSS PEROT JR TERMS OF THE TRANSACTION WEREN'T DISCLOSED FOR FEDERAL EXPRESS THE NEW FACILITY WHICH IS EXPECTED TO OPEN IN MID1997 WILL EASE DEMANDS ON THE COMPANY'S FOUR EXISTING HUBS IN MEMPHIS TENN INDIANAPOLIS OAKLAND CALIF AND NEWARK NJ THE SOUTHWESTERN SITE THE COMPANY SAID IS WELLSUITED TO HANDLE WEST COAST PACKAGES AND LETTERS DESTINED FOR TEXAS AND FLORIDA AS WELL AS FOR THE ENTIRE SOUTHEAST PLANS CALL FOR CONSTRUCTION OF FIVE MAJOR BUILDINGS THREE PACKAGE AND DOCUMENTSORTING BUILDINGS WILL COVER ABOUT 230000 SQUARE FEET THE FACILITY WHICH WILL EMPLOY ABOUT 600 PEOPLE WILL HAVE THE CAPACITY TO SORT 21000 PACKAGES AND 30500 DOCUMENTS AN HOUR THE ALLIANCE AIRPORT IN FORT WORTH TEXAS IS UNDER THE DIRECTION OF THE FORT WORTH CITY COUNCIL A HEADLINE IN THE DEC 17 EDITIONS INCORRECTLY STATED THAT THE AIRPORT WAS OWNED BY ROSS PEROT THE ARTICLE WAS ABOUT FEDERAL EXPRESS CORP'S SELECTION OF ALLIANCE AIRPORT AS ITS SOUTHWESTERN HUB A MOVE THAT COULD BOOST THE FORTUNES OF A PROJECT LINKED TO THE FAMILY OF MR PEROT 9401260023 931222 CFTC SUSPENDS THREE TRADERS CONVICTED AFTER STING OPERATION BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE COMMODITY FUTURES TRADING COMMISSION USING NEW POWERS TO SUPERCEDE THE AUTHORITY OF THIS CITY'S FUTURES MARKETS HAS SUSPENDED A GROUP OF TRADERS WHO WERE CONVICTED OF CRIMES AFTER A GOVERNMENT STING OPERATION HERE THE TRADERS WHO WERE AMONG THOSE SNARED FOUR YEARS AGO BY UNDERCOVER AGENTS OF THE FEDERAL BUREAU OF INVESTIGATION HAD RETURNED TO THE CHICAGO MERCANTILE EXCHANGE AND CHICAGO BOARD OF TRADE DESPITE THEIR FELONY CONVICTIONS THE SUSPENSIONS ARE A FIRST STEP IN THE CFTC'S EFFORT AS THE FEDERAL REGULATOR OF US FUTURES MARKETS TO PERMANENTLY REMOVE CONVICTED FELONS FROM THE TRADING FLOORS OF THE CHICAGO MERC AND BOARD OF TRADE ULTIMATELY AN ADMINISTRATIVE LAW JUDGE WILL DECIDE WHETHER THE DIVISION'S SUSPENSIONS ARE APPROPRIATE AND SHOULD BE PERMANENT THE THREE TRADERS SUSPENDED BY THE CFTC ARE DANIEL SCHECK AT THE CHICAGO MERC AND JOEL FETCHENHIER AND JOHN RYAN AT THE BOARD OF TRADE A FOURTH TRADER ROBERT MOSKY AGREED TO LEAVE THE MERC'S TRADING FLOOR VOLUNTARILY AFTER THE CFTC'S ENFORCEMENT DIVISION INFORMED HIM OF ITS INTENTION TO SUSPEND HIM I'M PLEASED THAT A GOOD MANY OF OUR EFFORTS TO GET THESE PEOPLE OFF THE FLOOR HAVE BEEN SUCCESSFUL SAID DENNIS KLEJNA CHIEF OF ENFORCEMENT FOR THE CFTC IT'S A STEP IN THE RIGHT DIRECTION IN JULY A FRONTPAGE ARTICLE IN THIS NEWSPAPER REPORTED THAT THE CHICAGO MERC HAD ALLOWED TRADERS WHO FOUGHT CRIMINAL CHARGES RELATED TO THE FBI INVESTIGATION TO RETURN TO ITS TRADING FLOOR WHILE EXPELLING OTHERS WHO COOPERATED WITH THE GOVERNMENT THE ARTICLE ALSO REPORTED THAT 13 TRADERS CONVICTED OF CRIMES HAD RETURNED TO THE CHICAGO EXCHANGES EIGHT TO THE MERC AND FIVE TO THE BOARD OF TRADE OF THOSE 13 TRADERS NINE REMAIN ON THE TRADING FLOORS SEVEN OF THEM ARE LIKELY TO BE THERE INDEFINITELY BECAUSE THEY WERE CONVICTED ONLY OF MISDEMEANORS BUT TWO OTHER TRADERS WHO WERE CONVICTED OF FELONIES REMAIN ON THE FLOOR THOUGH THE CFTC'S ENFORCEMENT DIVISION WOULD LIKE TO REMOVE THEM BECAUSE OF A WRINKLE IN CFTC ENFORCEMENT PROCEDURES MR KLEJNA SAID THEY ARE EDWARD COX III AND CRAIG LACROSSE BOTH GRAIN TRADERS AT THE BOARD OF TRADE TO SUSPEND MESSRS SCHECK FETCHENHIER AND RYAN THE CFTC USED A NEW LAW THAT ALLOWS THE AGENCY TO DENY FLOORTRADER REGISTRATION TO CONVICTED FELONS YET BECAUSE MESSRS COX AND LACROSSE ARE REGISTERED WITH THE CFTC AS FLOOR BROKERS A STATUS DESIGNED FOR TRADERS WHO HANDLE ORDERS FOR OUTSIDE INVESTORS THE NEW LAW DOESN'T APPLY TO THEM EACH MAN IS USING HIS FLOORBROKER REGISTRATION TO TRADE FOR HIS OWN PROFIT RATHER THAN TO HANDLE ORDERS FOR INVESTORS IN PROCEEDINGS BEFORE A CFTC ADMINISTRATIVE LAW JUDGE THE ENFORCEMENT DIVISION IS SEEKING TO PERMANENTLY REVOKE THE BROKER REGISTRATIONS OF MESSRS COX AND LACROSSE ON THE BASIS OF THEIR FELONY CONVICTIONS MR KLEJNA SAID WHILE THE CASE IS PENDING THE TWO TRADERS WILL REMAIN ON THE FLOOR A TOTAL OF 48 TRADERS WERE INDICTED AFTER THE FBI'S TWOYEAR INVESTIGATION IN WHICH AGENTS POSED AS FUTURES TRADERS AMONG THE SCREAMING HANDWAVING THRONG IN CHICAGO'S TRADING PITS PROSECUTORS ACCUSED THEM OF CRIMES RANGING FROM DEFRAUDING INVESTORS BY MAKING PREARRANGED DEALS AMONG THEMSELVES TO RELATIVELY MINOR VIOLATIONS OF THE FEDERAL COMMODITY EXCHANGE ACT ALL BUT THREE OF THE 48 TRADERS ULTIMATELY WERE CONVICTED OR PLEADED GUILTY TO CRIMES PARTLY BECAUSE OF THE WRONGDOING UNCOVERED BY THE INVESTIGATION CONGRESS LAST YEAR GAVE THE CFTC SWEEPING NEW POWERS TO MONITOR FUTURES TRADING AND POLICE ABUSES AMONG OTHER THINGS THE 1992 CFTC REAUTHORIZATION BILL BANNED INSIDER TRADING A FIRST FOR THE FUTURES INDUSTRY AND REQUIRED ALL FUTURES FLOOR TRADERS TO REGISTER WITH THE CFTC IN THE PAST ONLY FLOOR BROKERS WERE REQUIRED TO REGISTER IN AN AGGRESSIVE APPLICATION OF ITS NEW TOOLS THE CFTC'S ENFORCEMENT DIVISION HAS BEEN USING THE TRADERREGISTRATION REQUIREMENT TO DENY TRADINGFLOOR ACCESS TO FELONS LAWYERS FOR SOME OF THE TRADERS THE DIVISION HAS TARGETED FOR PERMANENT REMOVAL ASSERT THAT THE ACTIONS AREN'T WARRANTED FRANKLY I DON'T THINK THAT BANNING EVERYBODY CONVICTED OF A FELONY IS APPROPRIATE SAID MATT LYDON ATTORNEY FOR MR LACROSSE THERE ARE ALL SORTS OF FELONIES IT MAY BE THAT A PERSON CONVICTED OF NUMEROUS MISDEMEANORS IS MORE DESERVING OF A BAN OF HIS OWN CLIENT MR LYDON SAID THE GUY IS AN HONEST MAN AND HE OUGHT NOT BE PERMANENTLY BARRED FOR THIS ONE MISTAKE MR LACROSSE PLEADED GUILTY TO TWO VIOLATIONS OF THE COMMODITY EXCHANGE ACT A FELONY AND A MISDEMEANOR HE ADMITTED TAKING FOR HIMSELF A PROFIT THAT RESULTED FROM AN ERROR IN PROCESSING AN INVESTOR'S SOYBEAN FUTURES TRADE MR LYDON SAID RATHER THAN GIVING IT TO THE INVESTOR AS THE LAW REQUIRES GORDON NASH ATTORNEY FOR MR RYAN SAID AT THE TIME OF THE CFTC'S FILING AGAINST HIS CLIENT THAT THE AGENCY'S ENFORCEMENT DIVISION WAS USING THE BACK DOOR TO UNFAIRLY SEEK MR RYAN'S PERMANENT EXPULSION FROM THE TRADING FLOOR AT THE TIME MR NASH NOTED THAT A LAW JUDGE FOR THE CFTC HAD PREVIOUSLY IMPOSED ONLY A 90DAY SUSPENSION FOR MR RYAN'S OFFENSES WHICH INCLUDED A FELONY WIREFRAUD CONVICTION MR NASH DECLINED TO COMMENT ON MR RYAN'S RECENT SUSPENSION BY THE ENFORCEMENT DIVISION SAYING THE MATTER IS IN LITIGATION ANOTHER LAWYER WHO ASKED NOT TO BE NAMED POINTED OUT THAT THE ENFORCEMENT DIVISION HASN'T SOUGHT PERMAMENT REMOVAL OF SOME TRADERS CONVICTED OF FELONIES WHO CHOSE TO COOPERATE WITH GOVERNMENT INVESTIGATORS A CFTC STAFF MEMBER ACKNOWLEDGED THAT THE AGENCY HAS IN A FEW CASES BEEN MORE LENIENT WITH TRADERS WHO HELPED THE GOVERNMENT BUILD CASES AGAINST THEIR COLLEAGUES MESSRS MOSKY AND SCHECK COULDN'T BE REACHED AND THEIR ATTORNEYS DIDN'T RETURN PHONE CALLS SEEKING A COMMENT MR FETCHENHIER'S LAWYER AND MR COX BOTH DECLINED TO COMMENT SEE RELATED LETTER LETTERS TO THE EDITOR UNFAIR TREATMENT OF FLOOR TRADERS WSJ JAN 26 1994 9312220079 YY94 MM01 9401250148 931209 AUTOS NISSAN RECALLS AND DESTROYS SOME MINIVANS BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL AFTER THREE SAFETY RECALLS TO FIX ITS 1987 TO 1990 MINIVANS NISSAN MOTOR CO IS TAKING THE EXTRAORDINARY STEP OF BUYING BACK AND CRUSHING SOME OF THE VEHICLES IN ITS FOURTH RECALL WHICH WAS BEGUN IN AUGUST BUT ONLY PUBLICLY DISCLOSED THIS WEEK NISSAN IS SPENDING AT LEAST 45 MILLION TO FIX THE ESTIMATED 33000 MINIVANS STILL ON THE ROAD BUT IN SOME CASES THE REPAIRS HAVE BEEN SO EXPENSIVE THAT NISSAN HAS OFFERED TO BUY THE MINIVANS FROM THE OWNERS NISSAN SAYS IT HAS BOUGHT BACK AND CRUSHED ABOUT 900 OF ITS MINIVANS THE LAST BIG BUYBACK OF THIS TYPE OCCURRED IN THE LATE 1970S AND EARLY 1980S WHEN ITALIAN AUTO MAKER FIAT SPA BOUGHT BACK THOUSANDS OF CARS WITH SEVERE RUST PROBLEMS IN A RECALL A CAR COMPANY NOTIFIES OWNERS THAT THEY SHOULD BRING THEIR CARS TO THEIR DEALERSHIPS FOR FREE REPAIRS NISSAN'S LETTER TO OWNERS NOTES THAT IF THE VEHICLE'S FAN BELT BREAKS THE MINIVAN COULD OVERHEAT POSSIBLY RESULTING IN FIRES IN THE ENGINE COMPARTMENT SOME VAN OWNERS SAY THE VEHICLE A MIDENGINE MIDPRICED MINIVAN HAS BEEN A NIGHTMARE FOR THEM MARION WEICK OF CRYSTAL RIVER FLA SAID NISSAN HAS REPLACED THE WATER PUMP ON HER 1987 MINIVAN SIX TIMES INSTALLED A NEW AIR CONDITIONER AND MADE NUMEROUS OTHER REPAIRS THE WEICKS STOPPED DRIVING THE VAN IN SEPTEMBER AFTER IT FILLED WITH SMOKE THE INCIDENT OCCURRED JUST A WEEK AFTER A NISSAN DEALER PERFORMED THE RECENT RECALL SERVICE ON IT MRS WEICK SAID NISSAN SHOULD HAVE HAD THESE VANS OFF THE ROAD A LONG TIME AGO SHE SAYS THE WEICKS ARE NOW PLAINTIFFS IN A CLASS ACTION LAWSUIT AGAINST NISSAN SO FAR NISSAN SAYS IT HAS FIXED OR CRUSHED 15000 VEHICLES IT'S ONE OF THE MOST EXPENSIVE RECALLS THAT I'M AWARE OF ON A PERVEHICLE BASIS SAID BILL BOEHLY ASSOCIATE ADMINISTRATOR OF THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION WHICH REVIEWED THE RECALL THE REPEATED RECALLS ARE ALSO SOMETHING OF AN EMBARRASSMENT TO NHTSA MR BOEHLY ACKNOWLEDGES AND THE AGENCY IS MAKING CHANGES IN ITS AUDIT PROCEDURES TO AVOID FUTURE MULTIPLE RECALLS A FOURTH RECALL IS NOT THE WAY WE LIKE TO SEE THINGS GO MR BOEHLY SAID AND WE'RE GOING TO BE WATCHING THIS ONE VERY CAREFULLY IN OCTOBER THE LAW FIRM OF MITHOFF & JACKS IN AUSTIN TEXAS FILED A CLASS ACTION AGAINST NISSAN ON BEHALF OF VAN OWNERS FROM TEXAS CALIFORNIA AND FLORIDA LARRY WRIGHT AN ATTORNEY WITH THE FIRM SAYS THE SUIT IS SEEKING AMONG OTHER THINGS TO FORCE NISSAN TO REFUND THE FULL PURCHASE PRICE OF THE VEHICLE TO OWNERS AT A MINIMUM WE'RE TALKING ABOUT TENS OF MILLIONS OF DOLLARS HE SAID NISSAN MAINTAINS THAT ITS LATEST RECALL INCLUDING THE LARGE CASH SETTLEMENTS HAVE BEEN EXTREMELY WELL RECEIVED BY MOST VAN OWNERS THE GOOD PART OF THIS STORY IS WE'VE DONE A LOT OF INNOVATIVE STEPS FOR CUSTOMER SATISFACTION SAID A NISSAN SPOKESMAN WE REALLY WANT THEM THE VAN OWNERS BACK AS NISSAN CUSTOMERS NISSAN SAYS THE RECALL IS A VOLUNTARY ACTION THAT WAS PLANNED FOR SOME TIME BUT NHTSA'S MR BOEHLY SAID THE FEDERAL AGENCY WOULD HAVE TAKEN STEPS TO FORCE A RECALL IF NISSAN HADN'T ACTED IN JANUARY RALPH HOAR & ASSOCIATES AN ARLINGTON VA RESEARCH FIRM NOW ASSISTING THE PLAINTIFFS IN THE CLASS ACTION PETITIONED NHTSA TO ORDER NISSAN TO REPURCHASE ALL THE VANS NHTSA DENIED THAT PETITION AFTER NISSAN AGREED TO CONDUCT THE RECALL MR BOEHLY SAID I BELIEVE THE RECALL IS ADDRESSING THE ROOT CAUSE OF THE PROBLEMS HE SAID THE RECALL DOESN'T INCLUDE NISSAN'S CURRENT MINIVAN THE QUEST WHICH IS DESIGNED BY NISSAN BUT BUILT BY FORD MOTOR CO THE RECALL COVERS AN EARLIER MINIVAN THAT NISSAN STOPPED PRODUCING IN 1990 THERE HAVE BEEN 153 FIRES IN THESE VANS NISSAN SAYS ALTHOUGH NOT ALL OF THEM WERE CAUSED BY ENGINE COMPARTMENT PROBLEMS NONCRASH FIRES IN THE EARLIER NISSAN MINIVANS OCCUR AT MORE THAN TWICE THE RATE FOR ALL CARS ACCORDING TO THE HIGHWAY LOSS DATA INSTITUTE A NONPROFIT GROUP FUNDED BY THE INSURANCE INDUSTRY HOWEVER IN A LETTER TO NHTSA THE INSTITUTE NOTED THAT THE SIZE OF THE SAMPLE WAS SMALL AND CALLED THE DATA INDICATIVE OF A PROBLEM BUT NOT CONCLUSIVE PROOF AND AS NISSAN LIKES TO POINT OUT THE INSTITUTE FOUND OTHER VEHICLES WITH HIGHER FIRE RATES THAN NISSAN'S THE REPAIRS BEING MADE BY NISSAN IN THIS LATEST RECALL ARE EXTENSIVE NISSAN IS PUTTING A BEEFEDUP COOLING SYSTEM IN THE VAN INCLUDING A RADIATOR AND AN ELECTRIC FAN NISSAN IS ALSO INSTALLING A SPECIAL WARNING SYSTEM THREE WARNING LIGHTS AND A CHIME TO ALERT CUSTOMERS IF THE FAN BELT BREAKS NISSAN WHICH HAD PREVIOUSLY GIVEN VAN OWNERS A FREE 100000MILE POWERTRAIN WARRANTY IS ALSO MAKING OTHER REPAIRS IN SOME VEHICLES IN A VAN OWNED BY MARK AND DEANA CLEETON OF ST CHARLES MO NISSAN WAS ALSO PREPARED TO INSTALL A NEW AUTOMATIC TRANSMISSION WHICH WOULD HAVE RAN THE BILL UP TO 6420 THE CLEETONS INSTEAD ACCEPTED A BUYOUT FOR 6420 IT WAS A GOOD DEAL FOR THE COUPLE BECAUSE THEY HAD BOUGHT THE VAN USED FOR JUST 2000 IN FEBRUARY BUT MRS CLEETON SAYS SHE HAD TO FIGHT NISSAN TO GET THE BUYOUT FINANCIALLY WE CAME OUT ALL RIGHT I CAN'T DISPUTE THAT SAYS MRS CLEETON BUT I'M NOT HAPPY WITH NISSAN AND I WOULDN'T BUY ANOTHER VEHICLE FROM THEM NOT ALL VAN OWNERS FEEL THAT WAY RICHARD ZUBIATE OF EL PASO WHO OWNS A 1987 MINIVAN SAYS HIS VAN HAS BEEN ALMOST TROUBLE FREE AND HE WAS IMPRESSED WITH THE WAY NISSAN CONDUCTED THE LATEST RECALL ANYBODY WHO WOULD TAKE A SEVENYEAR VEHICLE AND INVEST THAT KIND OF MONEY TO KEEP GOOD WILL SAYS MR ZUBIATE WHO HAS OWNED SEVEN NISSAN VEHICLES OVER THE YEARS THEY'VE GOT ME FOREVER SEE RELATED LETTER LETTERS TO THE EDITOR NISSAN VAN OWNERS BECAME GUNIEA PIGS WSJ JAN 25 1994 9312090002 YY94 MM01 9401250144 931231 HOW OUR TOWNS FIGHT CRIME BY AMITAI ETZIONI WHILE WASHINGTON SWEATS OUT THE CRIME BILL COMMUNITIES FROM COAST TO COAST ARE EXPERIMENTING SUCCESSFULLY WITH VARIOUS ANTIVIOLENCE MEASURES UNFORTUNATELY THE AMERICAN CIVIL LIBERTIES UNION IS SUCCESSFULLY SLOWING THEM DOWN EXAMPLES OF EFFECTIVE GRASSROOTS EFFORTS TO COMBAT CRIME ABOUND IN NEW JERSEY THE CITIES OF NEWARK AND ORANGE HAVE INTRODUCED CURFEWS PROHIBITING MINORS FROM BEING ON THE STREETS BETWEEN 10 PM AND 6 AM EXCEPTIONS ARE MADE FOR THOSE PASSING THROUGH TOWN OR ON THE WAY TO OR FROM A POLITICAL OR RELIGIOUS EVENT THE LAW FOSTERS PARENTAL RESPONSIBILITY BY FINING PARENTS RATHER THAN ARRESTING THE CHILDREN FOUND ROAMING THE STREETS AFTER HOURS CURFEWS KEEP MINORS OUT OF HARM'S WAY AND DEPRIVE DRUG DEALERS OF THEIR RUNNERS AND LOOKOUTS DURING PEAK BUSINESS HOURS MANY NEIGHBORHOODS HAVE RECENTLY ERECTED A VARIETY OF ROADBLOCKS OAKLAND CALIF SET UP 17 ON ROADS LEADING TO NEARBY LAKE MERRITT WHEN RESIDENTS COMPLAINED OF INCESSANT CRUISING PUBLIC DRUNKENNESS AND RUDE BEHAVIOR IN A PUBLIC HOUSING PROJECT IN CHICAGO DRIVEBY SHOOTINGS AND ABOUT HALF OF THE DRUG TRAFFIC WERE STOPPED WHEN A FENCE WAS ERECTED AROUND THE PROJECT IN INKSTER MICH AN OPENAIR DRUG MARKET WAS CLOSED OVERNIGHT WHEN A LOCAL SHERIFF SET UP A ROADBLOCK AND DEMANDED TO SEE A DRIVER'S LICENSE AND PROOF OF CAR OWNERSHIP DOCUMENTS DRIVERS ARE REQUIRED TO CARRY BY LAW MERE SHAMING ALSO WORKS A NEIGHBORHOOD IN LONG ISLAND WAS FLOODED WITH CRUISING MEN WHO LOOKING FOR PROSTITUTES SOLICITED PASSERSBY EVEN WOMEN WORKING IN THEIR GARDENS A COMMUNITY ASSOCIATION WROTE DOWN THEIR LICENSE PLATE NUMBERS AND SENT LETTERS TO THEIR HOMES IT PROVED A SURPRISINGLY EFFECTIVE DETERRENT NUMEROUS COMMUNITIES ACROSS THE COUNTRY HAVE FORMED CRIME WATCHES GROUPS OF CITIZENS WHO AGREE TO GUARD ONE ANOTHER'S PROPERTY WHEN RESIDENTS SEE SUSPICIOUS MOVEMENTS IN A NEIGHBOR'S YARD THEY NOTIFY THE AUTHORITIES A LARGE NUMBER OF NEIGHBORHOODS HAVE SET UP ANTIDRUG PATROLS IN WASHINGTON DC MULTIRACIAL ORANGE HAT PATROLS CHASE DRUG DEALERS OUT OF THEIR COMMUNITIES BY NOTING THEIR LICENSE PLATE NUMBERS AND FILMING THEM WITH HANDHELD VIDEO RECORDERS IN WASHINGTON'S NORTH MICHIGAN PARK SUCH A PATROL HELPED SNARE CORRUPT COPS WHO WERE PROTECTING DRUG DEALERS ANOTHER GROUP IN WASHINGTON RECAPTURED THE MERIDIAN HILL PARK FROM DRUG TRAFFICKERS WHILE THESE EFFORTS BASICALLY REFLECT THE WORK OF VOLUNTEERS OR THE INITIATIVE OF LOCAL SHERIFFS STATES ALSO HAVE BEEN TAKING NEW STEPS FOR INSTANCE WASHINGTON STATE HAS PASSED A LAW REQUIRING THE CONTINUED DETENTION OF SEX OFFENDERS UNTIL MEDICAL AUTHORITIES RULE THAT THEY ARE SAFE TO BE AT LARGE AND FROM NEW YORK CITY TO LOS ANGELES COMMUNITY POLICING PROGRAMS ARE GETTING COPS OUT OF THEIR CARS TO WALK THE BEATS TO KNOW CLOSELY THE AREA THEY ARE PATROLLING AND TO DEVELOP CLOSER RELATIONS WITH THE LOCALS NONE OF THESE MEASURES ELIMINATES VIOLENT CRIME THERE IS NO SINGLE MEASURE OR EVEN GROUP OF MEASURES THAT CAN ENSURE PUBLIC SAFETY 100 BUT THESE MEASURES DO SAVE LIVES AND IF USED MORE WIDELY THEY COULD REDUCE BOTH VIOLENCE AND THE SENSE OF BEING CONSTANTLY MENACED RESTORING BASIC CIVILITY MORE AND MORE SOCIAL SCIENTISTS AGREE REQUIRES A RETURN TO BASICS A RECONSTRUCTION OF THE FAMILY VALUES EDUCATION IN SCHOOLS STRONGER NEIGHBORHOOD BONDS AND POSSIBLY SOME KIND OF SPIRITUAL OR RELIGIOUS REVIVAL ENTER THE CIVIL LIBERTARIANS A MAJOR REASON ANTICRIME MEASURES SUCH AS THESE ARE NOT APPLIED IN MORE COMMUNITIES IS THAT THE ACLU AND ITS ARMY OF LAWYERS HOBBLES THEM IN COURTS AND SOURS THE PUBLIC'S RECEPTION TO THEM TO PREVAIL IN THE COURTS OF LAW AND OF PUBLIC OPINION ONE MUST UNDERSTAND THE ARGUMENTS THE ACLU ADVANCES TYPICALLY THE ACLU'S OPENING VOLLEY IS THAT THE SUGGESTED ANTICRIME STEPS ARE NOT COSTEFFECTIVE BUILDING JAILS IS TOO EXPENSIVE DRUG REHABILITATION IS SAID TO BE CHEAPER KEEPING SEX OFFENDERS IN JAIL UNTIL THEY ARE SAFE TO BE RELEASED IS A WASTE OF MONEY THE ACLU DOES NOT BUTTRESS ITS POINTS WITH SPECIFIC STATISTICS BASED ON VALID SAMPLES DATA COMPARING A PROGRAM TO A CONTROL GROUP OR OTHER SUCH SOCIAL SCIENCE EVIDENCE IT RELIES ON ANECDOTES NEWSPAPER CLIPPINGS AND SELECT QUOTATIONS FROM FAVORED EXPERTS INDEED THE FACT THAT THIS LINE OF ARGUMENT IS MERELY A SMOKE SCREEN BECOMES EVIDENT ONCE ONE PRESENTS DATA THAT THE GRASSROOTS ANTICRIME APPROACHES AT ISSUE ARE EFFECTIVE THE ACLU THEN IMMEDIATELY RETREATS TO ITS MAIN LINE OF ATTACK IT DOES NOT MATTER IF THE SUGGESTED MEASURES ARE EFFICIENT THEY ARE UNCONSTITUTIONAL A COMMON CLAIM IS THAT THESE NEW ANTICRIME TECHNIQUES ARE RACIST WHEN THE POLICE SET UP ROADBLOCKS IN THE LAKE MERRITT AREA THE SAN FRANCISCO CHAPTER OF THE ACLU ARGUED THAT ROADBLOCKS ARE DISCRIMINATORY BECAUSE MORE YOUNG PEOPLE ARE STOPPED THAN OLD ONES AND MORE BLACKS THAN WHITES THE POLICE COUNTERED THAT OFFICERS ASKED FOR IDS FROM EVERYONE AND ONLY BARRED NONRESIDENTS THE POLICE DID ADMIT THAT ONCE THEY BECAME ACQUAINTED WITH SOME OF THE RESIDENTS OFFICERS SIMPLY WAVED THEM THROUGH THE SAME ARGUMENT IS RAISED AGAINST CRIME DATABANKS WHICH POLICE ACROSS THE COUNTRY ARE FINDING A RICH RESOURCE THE COLORADO ACLU ATTACKED DENVER'S POLICE ROSTER OF GANG MEMBERS BECAUSE MORE THAN HALF OF THOSE LISTED ARE BLACK WHILE BLACKS CONSTITUTED ONLY 5 OF THE POPULATION AND HISPANICS CONSTITUTED ABOUT A THIRD OF THE LIST WHILE THEY ARE ONLY 12 OF THE CITY'S POPULATION THE FACT THAT MOST GANG MEMBERS IN DENVER ARE NOT WHITE DID NOT IMPRESS THE ACLU NOR DID THE FACT THAT A PERSON WHO HAS NO CONTACT WITH THE POLICE IS DROPPED FROM THE ROSTER AFTER A SPECIFIED PERIOD THE ACLU VIEWS ALL ROADBLOCKS SCREENING GATES WHICH ARE FAMILIAR TO AIRLINE PASSENGERS BUT ALSO INCREASINGLY SERVE SCHOOLS COURTHOUSES AND LEGISLATURES DRUG TESTING EXAMINATION OF LOCKERS IN PUBLIC SCHOOLS SOBRIETY CHECKPOINTS AND THE LIKE AS VIOLATIONS OF THE FOURTH AMENDMENT'S SEARCH AND SEIZURE PROTECTION WHAT THE ACLU SPECIFICALLY OBJECTS TO IN ALL THESE SITUATIONS IS THAT PEOPLE ARE BEING SEARCHED WITHOUT THERE BEING A SPECIFIC SUSPICION THAT THEY COMMITTED A CRIME THESE ARE SAID TO CONSTITUTE SEARCHES OF THE INNOCENT NOTE THAT THE ACLU MISSTATES THE FOURTH AMENDMENT IT READS THE RIGHT OF THE PEOPLE TO BE SECURE IN THEIR PERSONS HOUSES PAPERS AND EFFECTS AGAINST UNREASONABLE SEARCHES AND SEIZURES SHALL NOT BE VIOLATED WHAT IS REASONABLE IS OPEN TO DEBATE BUT THE COURTS HAVE RULED AGAIN AND AGAIN THAT AT ISSUE IS A BALANCE BETWEEN INDIVIDUAL RIGHTS TO PRIVACY AND THE PUBLIC'S INTEREST IN ELEMENTARY SAFETY SURELY NO ONE WISHES TO INTRUDE WANTONLY ON PEOPLE'S PRIVACY BUT WHEN PLANES FULL OF AMERICANS WERE BEING HIJACKED IN THE 1970S THE NATION EMBRACED SCREENING GATES AND STOPPED THE TERRORISTS COLD THE ACLU'S WARNING THAT THESE GATES WOULD CONDITION AMERICANS TO A POLICE STATE HAS NOT PROVED ANY MORE TRUE THAN ITS MANY OTHER PREDICTIONS ABOUT THE DIRE RESULTS OF IMPROVEMENTS IN PUBLIC SAFETY THE ACLU'S GRAVEST MISTAKE IS ITS ASSUMPTION THAT THE BEST WAY TO PROTECT LIBERTIES IS BY BLOCKING MOVES THAT SEEK TO ENHANCE THE ROLE OF PUBLIC AUTHORITIES BUT THE GREATEST THREAT TO A FREE SOCIETY IS THAT IF LIBERTIES CANNOT BE SUBJECT TO SOME ORDER THERE WILL BE NONE WHEN PEOPLE'S MOST ELEMENTARY NEEDS FOR PROTECTION OF THEIR LIVES AND THOSE OF THEIR LOVED ONES ARE NOT MET THEY ARE SUSCEPTIBLE TO APPEALS BY DEMAGOGUES IN DESPERATION THEY LISTEN TO SUGGESTIONS SUCH AS THOSE OF CHICAGO'S FORMER POLICE SUPERINTENDENT LEROY MARTIN TO SHOOT DRUG DEALERS ON SIGHT WITHOUT TRIAL AND THOSE OF FELLOW CITIZENS WHO WROTE IN DESPERATION SEEKING TO SUSPEND THE CONSTITUTION UNTIL THE WAR AGAINST DRUGS IS WON THERE IS A FAINT HOPE THAT PEOPLE WILL COME TO UNDERSTAND THAT PROTECTING PUBLIC ORDER IS NOT ANTITHETICAL TO CIVIL LIBERTIES BUT ON THE CONTRARY A MAJOR PRECONDITION OF A FREE SOCIETY PEOPLE MUST LEARN TO OPPOSE THE RIGID AND NARROW INTERPRETATION OF THE CONSTITUTION ADVANCED BY THE ACLU COMMUNITIES SHOULD BE ABLE TO ADVANCE ANTICRIME MEASURES WITHOUT THE INCESSANT THREAT OF LAWSUITS MR ETZIONI IS THE AUTHOR OF THE SPIRIT OF COMMUNITY RIGHTS RESPONSIBILITIES AND THE COMMUNITARIAN AGENDA CROWN 1993 SEE RELATED LETTER LETTERS TO THE EDITOR CAN'T BEAT CRIME JUST BLAME ACLU WSJ JAN 25 1994 9312310107 YY94 MM01 9401240177 931229 POLITICS & POLICY ETHANOL BOON SHOWS HOW ARCHERDANIELS GETS ITS WAY IN WASHINGTON WITH LOWKEY LOBBYING BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN IT COMES TO LOBBYING LESS IS MORE FOR ARCHERDANIELSMIDLAND CO YET ADM ACHIEVED THIS COUP WITHOUT THE HELP OF A REGISTERED LOBBYIST OR EVEN IT SEEMS AN UNREGISTERED WASHINGTON LAW FIRM MOREOVER OFFICIALS AT THE WHITE HOUSE AND THE ENVIRONMENTAL PROTECTION AGENCY SAY THEY HAD NO DISCUSSIONS ABOUT THE MATTER WITH ANYONE FROM ADM ADM OFFICIALS REFUSE TO DISCUSS THE COMPANY'S EFFORTS ON THE ETHANOL ISSUE BUT A LOOK BEHIND THE SCENES OFFERS A RARE GLIMPSE INTO HOW THE COMPANY ACHIEVES SUCH SUCCESS IN THE WASHINGTON ARENA THE COMPANY'S STANCE OF SERENE DETACHMENT TOWARD A GOVERNMENT DECISION AFFECTING ITS VITAL ECONOMIC INTERESTS IS OF COURSE MAINLY A POSE IT IS ALSO STANDARD OPERATING PROCEDURE FOR ADM WHICH WHEN PULLING STRINGS IN WASHINGTON ALWAYS AFFECTS AN OUTWARD ASPECT OF BUDDHALIKE INDIFFERENCE TO WORDLY GAIN BUT SCRATCH BELOW ADM'S SURFACE AND YOU GET A DECIDEDLY DIFFERENT PICTURE ADM HAS BEEN THE MAJOR ARCHITECT OF THE ETHANOL LOBBY EFFORT SAYS A BLAKEMAN EARLY A WASHINGTON REPRESENTATIVE OF THE SIERRA CLUB CENTRAL TO THE ADM'S WASHINGTON CLOUT IS ITS VETERAN CHAIRMAN DWAYNE O ANDREAS ALTHOUGH ADM IS BASED IN DECATUR ILL MR ANDREAS IS AS MUCH A FIXTURE HERE AS THE WASHINGTON MONUMENT A LONGTIME HEAVY POLITICAL CONTRIBUTOR TO DEMOCRATS AND REPUBLICANS ALIKE MR ANDREAS HAS A KNACK FOR SHOWING UP IN THE RIGHT COMPANY BESIDES PARTICIPATING IN A NUMBER OF MEETINGS BETWEEN BUSINESS LEADERS AND PRESIDENT CLINTON HE HAS SOCIALIZED WITH THE FIRST FAMILY A 75THBIRTHDAY PARTY HE THREW IN OCTOBER IN WASHINGTON FOR ADM BOARD MEMBER ROBERT STRAUSS WAS ATTENDED BY HILLARY RODHAM CLINTON ADM WAS ALSO A KEY CLINTON ALLY IN PASSING THE NORTH AMERICAN FREE TRADE AGREEMENT THEN THERE IS MONEY FEDERAL ELECTION COMMISSION RECORDS SHOW THAT ADM WHICH HAS LONG HAD CLOSE TIES TO SUCH PROMINENT REPUBLICANS AS SENATE MINORITY LEADER ROBERT DOLE OF KANSAS FAVORED THE GOP IN ITS CORPORATE CONTRIBUTIONS FOR 1992 DURING THAT TWOYEAR ELECTION CYCLE ADM GAVE 772000 TO THE REPUBLICANS COMPARED WITH 136500 TO THE DEMOCRATS BUT ADM'S LOYALTIES APPEAR TO HAVE SHIFTED THIS YEAR RECORDS FOR THE FIRST HALF OF 1993 THE MOST RECENT DATA AVAILABLE SHOW THAT THE COMPANY GAVE FAR MORE TO THE DEMOCRATS 46500 THEN IT GAVE TO THE REPUBLICANS 27500 SEPARATELY MR ANDREAS WHOSE PERSONAL CONTRIBUTIONS HEAVILY FAVORED REPUBLICAN CANDIDATES IN 1992 WEIGHED IN A MERE SIX DAYS BEFORE THE PRESIDENTIAL ELECTION WITH A 50000 CONTRIBUTION TO THE DEMOCRATS' CONGRESSIONAL CAMPAIGN COMMITTEE MR ANDREAS'S CONTRIBUTIONS FOR 1993 WERE NEGLIGIBLE ACCORDING TO THE NOTYETCOMPLETE DATA CONSISTING THUS FAR ONLY OF A 5000 CONTRIBUTION TO THE TEXAS REPUBLICAN CONGRESSIONAL COMMITTEE THE ETHANOL POLICY FROM WHICH ADM STANDS TO BENEFIT HAS ITS ORIGINS IN THE 1990 CLEAN AIR ACT WHICH REQUIRES SERVICE STATIONS IN THE NATION'S NINE SMOGGIEST CITIES STARTING IN 1995 TO REDUCE SMOG BY MIXING GASOLINE WITH EITHER ETHANOL OR METHANOL IN THIS PROSPECTIVE MARKET METHANOL WHICH IS CHEAPER TO PRODUCE HAS THE EDGE BUT THE EPA THIS MONTH PROPOSED A RULE REQUIRING THAT 30 OF ALL GASOLINE SOLD UNDER THE REFORMULATEDGAS PROGRAM ROUGHLY ONETENTH OF ALL GASOLINE SOLD IN THE US MUST BE BLENDED WITH ETHANOL ONE REASON ADM DID NO LOBBYING ON THE ETHANOL POLICY IS THAT IT DIDN'T HAVE TO INSTEAD ITS CASE WAS PRESSED BY THE RENEWABLE FUELS ASSOCIATION A TRADE GROUP THAT LOBBIED THE WHITE HOUSE FOR MONTHS ON THE ISSUE COMPETING INDUSTRY GROUPS COMPLAIN THAT THE RENEWABLE FUELS ASSOCIATION IS DOMINATED BY ADM ERIC VAUGHN PRESIDENT OF THE TRADE ASSOCIATION DISPUTES THAT INSISTING THAT ADM HAS EQUAL STANDING WITH THE OTHER 70 COMPANIES THAT ARE PAYING MEMBERS BUT HE ACKNOWLEDGES THAT ADM IS REPRESENTED ON HIS GROUP'S BOARD AND EVEN CLINTON ADMINISTRATION OFFICIALS SAY THEY ASSUME THE ASSOCIATION ACTS AS A PROXY FOR THE COMPANY THE RENEWABLE FUELS ASSOCIATION ACTUALLY PUSHED A PROPOSAL THAT WOULD BENEFIT ADM EVEN MORE THAN THE EPA'S GUARANTEED MARKETSHARE PLAN AN EASING OF ENVIRONMENTAL RESTRICTIONS ON ETHANOL'S SUMMERTIME USE THE EPA BELIEVES THAT BECAUSE OF ETHANOL'S EVAPORATIVE PROPERTIES BLENDING IT WITH GASOLINE IN HOT WEATHER ACTUALLY INCREASES SMOG BUT BECAUSE ADM MAKES SOMEWHERE BETWEEN 50 AND 70 OF ALL THE ETHANOL IN THE US THE EPA DECISION SHOULD STILL BE A TREMENDOUS BOOST FOR THE COMPANY IF YOU'RE AN ETHANOL PRODUCER IT'S PRETTY HARD TO BE UNHAPPY SAYS DOUG DURANTE EXECUTIVE DIRECTOR OF THE CLEAN FUELS DEVELOPMENT COALITION ADMINISTRATION OFFICIALS DENY THAT HELPING ADM WAS ON THEIR MIND THEY ARGUE THAT THE DECISION WHICH MAKES GOOD ON A CAMPAIGN PROMISE BY PRESIDENT CLINTON TO PROMOTE ETHANOL USE WILL ENCOURAGE USE OF A DOMESTIC RENEWABLE RESOURCE CORN AND UNLIKE AN EARLIER ETHANOL PROPOSAL FLOATED BY PRESIDENT BUSH DURING THE 1992 CAMPAIGN WON'T HARM THE ENVIRONMENT ALTHOUGH ADM COULD BENEFIT HANDSOMELY FROM THE EPA PROPOSAL AS IT STANDS THE COMPANY'S ALLIES HAVEN'T YET GIVEN UP HOPE OF MOVING THINGS STILL FURTHER IN ITS DIRECTION SEN DOLE FOR EXAMPLE PRESSED A VARIATION OF THE RENEWABLE FUELS ASSOCIATION'S PLAN ON THE EPA AND IS NOW ASSUMING A DEFIANT ALLORNOTHING STANCE IN OPPOSITION TO THE EPA'S PROPOSED REGULATION WHICH HE BELIEVES VIOLATES FREEMARKET PRINCIPLES HE CLAIMS THAT THE EVIDENCE THAT ETHANOL EVAPORATION CONTRIBUTES TO SUMMERTIME SMOG IS INCONCLUSIVE IT'S LIKE WHAT CAUSES CANCER SAYS DOLE AIDE JIM WHITTINGHILL WHO THE HELL KNOWS SEE RELATED LETTER LETTERS TO THE EDITOR ETHANOL'S FREE RIDE AT TAXPAYERS EXPENSE WSJ JAN 24 1994 9312290018 YY94 MM01 9401240095 931229 LETTERS TO THE EDITOR BROKERS USE INVESTORS AS CASH COWS IN RESPONSE TO YOUR DEC 3 ARTICLE PLAN TO BAR NONLAWYER ADVISERS IN INVESTOR DISPUTES DEBATED THE DEBATE ON NONLAWYER REPRESENTATION OF BURNED INVESTORS IN SELFREGULATORY ORGANIZATIONS AND EXCHANGE ARBITRATION FORA IS A RECENT PHENOMENON THAT WAS INITIATED BY TWO GREEDY AND SELFINTERESTED GROUPS BROKERAGE HOUSES AND LAWYERS THE FORMER DO NOT WANT TO PAY THE LEGITIMATE CLAIMS OF THE INVESTORS RIPPED OFF BY THEIR LICENSED AGENTS A CORPORATE BOTTOMLINE CONSIDERATION TO SAVE TIME AND MONETARY EXPENSE THIS SHOULD NOT BE A BIG SURPRISE TO ANYONE BUT IT IS ALSO TRUE THAT NOTWITHSTANDING SLICK AND EXPENSIVE MEDIA ADVERTISEMENTS THE LARGE AND SMALL HOUSES CARE LITTLE IF AT ALL FOR THE PEOPLE WHO INVEST THEIR MONEY FAITH AND FULL TRUST WITH THE FIRMS AND BROKERS TO DO WHAT THEY ADVERTISE THEY WILL DO BUT OFTEN DON'T THE PRUDENTIAL ENERGY LIMITED PARTNERSHIP NATIONAL FRAUD IS PROOF OF THIS IF FIRMS AND BROKERS CONSISTENTLY PLACED CLIENT SERVICE AND APPROPRIATE INVESTMENTS AHEAD OF COMMISSIONS THE EXPLOSION OF ARBITRATION CASE FILINGS IN THIS COUNTRY WOULD NOT AS OF SEPT 30 1993 BE RUNNING AT A 37 HIGHER RATE THAN IN 1992 THE YEARSLONG RATE OF GROWTH IS CAUSED BY FRAUD NOT NONATTORNEY ARBITRATION FIRMS NONATTORNEY FIRMS REPRESENT A SMALL FRACTION OF THE INVESTORS WHO FILE CASES EACH YEAR SO FEW OF US EXIST THE SECOND GROUP LAWYERS WANT COMPANIES LIKE THIS ONE PUSHED INTO THE SEA SO THAT THEY CAN KEEP MORE FEES FOR THEMSELVES THOSE ATTORNEYS WHO HAVE THE EXPERTISE AND HANDSON EXPERIENCE TO WORK IN THIS SPECIALIZED AREA ASSESS FEES SIMILAR TO THOSE CHARGED BY PERSONALINJURY ATTORNEYS SUCH FEES ARE TOO HIGH AND NOT WARRANTED IN NONJUDICIAL CONSENSUAL ARBITRATION THIS OFFICE AS EXAMPLE CHARGES LESS THAN 50 OF WHAT MOST INVESTORS' ATTORNEYS IN THE FIELD BILL THE CONCERN OF BROKERAGES AND ATTORNEYS IS MONEY AND TURF THEY HAVE STATED THIS FACT OF LIFE TO ME OFTEN AND LOUDLY IT IS A SHAME SO FEW FIRMS AND LAWYERS ARE CONCERNED ABOUT THE OLDER COUPLE WHOSE LIFE SAVINGS WENT UP IN SMOKE BECAUSE A CARELESS OR NONCARING FIRM AND BROKER SAW A 10 COMMISSION ON A PROPRIETARY LIMITED PARTNERSHIP TOO ENTICING TO PASS UP THE FACTS ARE CLEAR THE RISE IN SECURITIES ARBITRATION IS DRIVEN AND CAUSED EXCLUSIVELY BY BROKERS AND FIRMS WITH A SINGLEMINDED VIEW OF INVESTORS AS REVENUE SOURCES NOT AS PEOPLE WHO JUST WANT SOUND ADVICE FOR THEIR PRESENT AND FUTURE FINANCIAL SECURITY AND IT IS THE LAWYERS BOTH ON THE INVESTOR AND THE DEFENSE SIDE OF THE TABLE WHO ARE MAKING THE ARBITRATION SYSTEM MORE LIKE COURT AND LESS LIKE WHAT IT WAS INTENDED TO BE A SIMPLIFIED TIMEEFFICIENT AND COSTEFFECTIVE MECHANISM THAT IS AN ALTERNATIVE TO COURT BUT IS BINDING ON ALL SIDES THE LAWYERS ARE RUINING THE SYSTEM AND I MUST REPORT BLUNTLY BUT RELUCTANTLY THAT THE NASD AND THE EXCHANGES ARE STANDING SILENT WHILE THE VIABLE INVESTOR RECOURSE OF ARBITRATION BECOMES MORE ERODED EACH DAY MARINA DEL REY CALIF SEE RELATED LETTER LETTERS TO THE EDITOR DO NONLAWYERS BELONG IN INVESTOR DISPUTES WSJ JAN 24 1994 9312290096 YY94 MM01 9401240091 931214 PUSHING DEMOCRACY IS NO KEY TO PROSPERITY BY ROBERT J BARRO THE US NEVER FAILS TO RECOMMEND WESTERNSTYLE DEMOCRACY TO ANY COUNTRY THAT CAN BE FORCED TO LISTEN WE PRESS NOW FOR POLITICAL REFORM IN CHINA HAITI SOUTH AFRICA PERU AND PERHAPS EVEN SOMALIA JUST AS WE DID EARLIER IN THE SOVIET UNION CHILE UNDER GEN AUGUSTO PINOCHET AND IRAN UNDER THE SHAH YET DEMOCRACY HAS AT BEST A MIXED RECORD AS A CONTRIBUTOR TO IMPROVED STANDARDS OF LIVING AND ENHANCED POLITICAL FREEDOMS ARE MORE LIKELY TO FOLLOW PROSPERITY THAN TO PRECEDE IT THE ACCOMPANYING TABLE SHOWS INDICATORS OF POLITICAL DEMOCRACY BY REGION FOR THREE TIME PERIODS THE EARLY 1960S MID1970S AND 1991 THE FIGURES FOR EACH COUNTRY ARE BASED AS DESCRIBED BY RAYMOND GASTIL SEE THE NOTES TO THE TABLE ON SUBJECTIVE INDEXES OF RIGHTS TO PARTICIPATE MEANINGFULLY IN THE POLITICAL PROCESS IN A DEMOCRACY THIS MEANS THE RIGHT OF ALL ADULTS TO VOTE AND COMPETE FOR PUBLIC OFFICE AND FOR ELECTED REPRESENTATIVES TO HAVE A DECISIVE VOTE ON PUBLIC POLICIES FOR 101 COUNTRIES EXCLUSIVE OF THE CURRENTLY OR FORMERLY COMMUNIST COUNTRIES THE AVERAGE LEVEL OF POLITICAL DEMOCRACY WAS 67 IN THE EARLY 1960S 47 IN THE MID1970S AND 59 IN 1991 THE SCALE IS FROM 0 TO 100 WITH 100 INDICATING FULLY DEMOCRATIC THE ECONOMIC INDICATORS SHOW AN AVERAGE GROWTH RATE OF REAL PERCAPITA GDP OF 16 PER YEAR FROM 1965 TO 1990 AND A LEVEL OF REAL PERCAPITA GDP IN 1990 OF 5120 1985 US DOLLARS THE 22 COUNTRIES IN EUROPE OR OF NORTHERN EUROPEAN ORIGIN WHICH INCLUDES THE US CANADA AUSTRALIA AND NEW ZEALAND ARE A SPECIAL GROUP WITH DEMOCRACY INDICATORS OF 91 IN THE 1960S AND 100 IN 1991 THE EUROPEAN COUNTRIES ALSO HAD GOOD ECONOMIC PERFORMANCE WITH AN AVERAGE LEVEL OF REAL PERCAPITA GDP IN 1990 IN EXCESS OF 13000 AND AN AVERAGE GROWTH RATE SINCE 1965 OF 25 PER YEAR THESE OBSERVATIONS LEAVE UNRESOLVED WHETHER THE GOOD ECONOMIC OUTCOMES REFLECTED DEMOCRATIC INSTITUTIONS OR INSTEAD PROSPERITY AND A PARTICULAR CULTURAL BACKGROUND ALLOWED THESE COUNTRIES TO MAINTAIN POLITICAL FREEDOMS OUTSIDE OF THE EUROPEAN GROUP THE PRESENCE OF SUSTAINED DEMOCRACY WAS RARE IF ONE CONSIDERS PLACES THAT HAVE INDICATORS OF 65 OR OVER CONTINUOUSLY SINCE THE EARLY 1970S AND WHICH HAVE RECENT POPULATIONS OF AT LEAST ONE MILLION THEN THE GROUP CONSISTS OF ONLY NINE COUNTRIES BOTSWANA MAURITIUS COSTA RICA JAMAICA TRINIDAD COLOMBIA VENEZUELA ISRAEL WHICH COULD HAVE BEEN CLASSED AS EUROPEAN AND JAPAN FOR 30 COUNTRIES IN SUBSAHARA AFRICA THE AVERAGE DEMOCRACY INDICATOR BEGAN IN THE EARLY 1960S AT THE REASONABLY HIGH VALUE OF 57 THIS FIGURE INCLUDED VALUES IN EXCESS OF 65 FOR NEWLY FORMED REGIMES IN CAMEROON CONGO KENYA MADAGASCAR MAURITANIA NIGERIA SIERRA LEONE SOMALIA UGANDA AND ZAMBIA BUT POLITICAL DEMOCRACY WAS APPARENTLY NOT SUSTAINABLE IN COUNTRIES WITH SUCH LOW LEVELS OF PERCAPITA INCOME AND EDUCATION BY THE 1970S THE AVERAGE DEMOCRACY INDICATOR HAD FALLEN TO 15 AND NEARLY ALL OF THE COUNTRIES IN SUBSAHARA AFRICA HAD BECOME ONEPARTY DICTATORSHIPS IN 1991 ZAMBIA WAS THE ONLY COUNTRY OTHER THAN BOTSWANA AND MAURITIUS WITH POPULATION OVER ONE MILLION AND A DEMOCRACY INDICATOR ABOVE 65 AFRICA WAS ALSO A PROBLEM AREA IN ECONOMIC PERFORMANCE THE LEVEL OF REAL PERCAPITA GDP IN 1990 WAS 940 AND THE AVERAGE GROWTH RATE SINCE 1965 WAS 01 PER YEAR FOUR OTHER REGIONS SHOWN IN THE TABLEEAST ASIA LATIN AMERICA MIDEAST/NORTH AFRICA AND SOUTH ASIA HAD ROUGHLY SIMILAR PATTERNS OF THE DEMOCRACY MEASURES AVERAGE VALUES OF 5070 IN THE EARLY 1960S WERE FOLLOWED BY A DECLINE OF 1520 POINTS TO THE MID1970S AND BY A RETURN TO ROUGHLY THE EARLY 1960S LEVELS BY 1991 ECONOMIC PERFORMANCES WERE CONSIDERABLY MORE VARIED RANGING FROM THE ASTONISHING PERFORMANCE OF THE EAST ASIAN COUNTRIES AVERAGE GROWTH RATE OF 51 PER YEAR TO THE SLUGGISH GROWTH OF LATIN AMERICA AVERAGE OF 09 PER YEAR LATIN AMERICA HAD A HIGH DEMOCRACY RATING BUT TURNED IN THE WORST ECONOMIC PERFORMANCE EXCEPT FOR JAPAN THE PROSPEROUS PACIFIC COUNTRIES WERE NOT ESPECIALLY DEMOCRATIC THE INDICATORS IN THE MID1970S WERE 37 FOR KOREA 67 FOR MALAYSIA 33 FOR SINGAPORE 30 FOR TAIWAN AND 37 FOR THAILAND IN LATIN AMERICA AND THE CARIBBEAN THE PERSISTENT DEMOCRACIES COSTA RICA JAMAICA TRINIDAD COLOMBIA AND VENEZUELA HAD NONSPECTACULAR GROWTH OF 1 PER YEAR MOREOVER POPULIST PARTIAL DEMOCRACIES CREATED ECONOMIC PROBLEMS IN MANY PLACES SUCH AS ARGENTINA BRAZIL CHILE MEXICO AND PERU IN MY STATISTICAL ANALYSIS THE FULL SET OF OBSERVATIONS ON RATES OF ECONOMIC GROWTH ARE RELATED TO THE DEMOCRACY INDICATORS AND TO OTHER VARIABLES SUCH AS INITIAL REAL PERCAPITA GDP LEVELS OF EDUCATION AND HEALTH GOVERNMENT SPENDING MEASURES OF MARKET DISTORTIONS AND CHANGES IN THE TERMS OF TRADE FOR EXPORTS AND IMPORTS THE RESULT IS THAT ON AVERAGE POLITICAL FREEDOM NEITHER HELPED NOR HINDERED GROWTH FOR GIVEN VALUES OF THE OTHER VARIABLES THE AVERAGE EFFECT OF MORE DEMOCRACY ON ECONOMIC GROWTH IS ROUGHLY ZERO THE LIKELY EXPLANATION IS THAT POLITICAL DEMOCRACY HAS OFFSETTING EFFECTS ON ECONOMIC INCENTIVES IN THE ONEPERSON/ONEVOTE SYSTEM OF PRESENTDAY WESTERN DEMOCRACIES POPULAR GOVERNMENTS TEND TO PURSUE ROBIN HOODSTYLE POLICIES REDISTRIBUTIONS FROM RICH TO POOR WHICH INCLUDE WELFARE TRANSFERS AND HIGH RATES OF TAXATION ON SUCCESSFUL BUSINESSES AND INDIVIDUALSOFTEN COMMAND MAJORITY SUPPORT WE HAVE SEEN MANY OF THESE POLICIES FROM THE CURRENT ADMINISTRATION IN WASHINGTON AND WILL UNDOUBTEDLY SEE MORE REGARDLESS OF ONE'S VIEWS ABOUT ROBIN HOOD'S MERITS IT IS CLEAR THAT SUCH POLICIES HAMPER ECONOMIC PERFORMANCE A DIFFERENT FORCE THAT FLOURISHES UNDER WESTERN DEMOCRACY IS THE POLITICAL POWER OF CONCENTRATED INTEREST GROUPS SUCH AS AGRICULTURE ENVIRONMENTAL LOBBIES DEFENSE CONTRACTORS AND THE HANDICAPPED THESE GROUPS GENERATE POLICIES THAT REDISTRIBUTE RESOURCES IN FAVOR OF THEMSELVES A TRANSFER THAT TYPICALLY DOES NOT BENEFIT THE POOR OVER THE RICH BUT TENDS TO HAMPER ECONOMIC GROWTH FOR INSTANCE THE POLITICAL PROCESS IN THE US DOES NOT PERMIT A REMOVAL OF MOST OF THE WORST CASES OF AGRICULTURAL SUBSIDIES IT ALLOWS MINOR ENVIRONMENTAL CAUSES TO CREATE SUBSTANTIAL ECONOMIC DAMAGE AND IT IS EVEN CAPABLE OF LABELING FAT PEOPLE AS DISABLED AND HENCE WORTHY OF SPECIAL LEGAL PROTECTION ON THE PLUS SIDE POLITICAL FREEDOM CAN BE AN IMPORTANT CHECK ON THE POWER OF THE GOVERNMENT THESE FREEDOMS MAY CONSTRAIN THE ABILITY OF PUBLIC OFFICIALS TO SEEK RENTS THROUGH CORRUPTION AND FAVORS AND MAY ALSO LIMIT THE GOVERNMENT'S CAPACITY TO ABRIDGE INDIVIDUALS' PROPERTY RIGHTS THE ECONOMIC OUTLOOK OF DICTATORSHIPS FALLS INTO TWO MAIN TYPES FIRST THERE ARE REGIMES THAT MAINLY ENHANCE THE WEALTH OF PUBLIC OFFICIALS THROUGH RENT SEEKING AND PURE THEFT SUCH AS MANY OF THE GOVERNMENTS OF SUBSAHARA AFRICA AND SOME OF THE MONARCHIES OF EUROPEAN HISTORY SECOND THERE ARE NONDEMOCRATIC GOVERNMENTS THAT FURTHER ECONOMIC GROWTH WITHOUT HAVING TO CATER MUCH TO THE PREFERENCES OF VOTERS OR TO INTERESTGROUP PRESSURES THIS LAST CATEGORY OF NONDEMOCRATIC STATES INCLUDES MOST OF THE EAST ASIAN ECONOMIC SUCCESS STORIES KOREA MALAYSIA SINGAPORE TAIWAN AND THAILAND AS WELL AS CHILE UNDER GEN PINOCHET PERU UNDER ALBERTO FUJIMORI MEXICO TO SOME EXTENT THE SHAH'S IRAN AND PRESENTDAY CHINA INTERESTINGLY THE ECONOMIC SUCCESSES HAVE BEEN FOLLOWED BY MOVES TOWARD DEMOCRACY IN KOREA TAIWAN AND CHILE IF THE US AND OTHER WESTERN DEMOCRACIES ARE INTERESTED IN THE WELFAREAND HENCE THE ECONOMIC GROWTHOF POOR NATIONS THE ADVOCACY OF POLITICAL DEMOCRACY OUGHT TO BE TEMPERED BY DISTINGUISHING AMONG DICTATORIAL REGIMES FOR INSTANCE IT WAS A MISTAKE TO ATTEMPT TO DISPLACE THE SHAH IN IRAN OR GEN PINOCHET IN CHILE TO CRITICIZE MR FUJIMORI'S TAKING OF POWER IN PERU OR TO CRITICIZE ONEPARTY RULE IN MEXICO IT IS ALSO AN ERROR TO FAVOR A POPULARLY ELECTED FIGURE JEANBERTRAND ARISTIDE IN HAITI WHO HAS NO CHANCE OF ESTABLISHING A REGIME THAT CAN FAVOR ECONOMIC GROWTH IN SOMALIA IT WOULD BE MORE RESPONSIBLE TO SUPPORT A STRONG LEADER WHO MIGHT SPONSOR ECONOMIC PROGRESS THAN TO DREAM OF A WESTERNSTYLE DEMOCRACY THAT HAS NOT YET WORKED IN MANY MORE PROMISING PLACES IN AFRICA THE SITUATION IN RUSSIA IS MORE COMPLICATED THE SUDDEN POLITICAL UPHEAVAL LED TO A POLITICAL VACUUM WITH POORLY DEFINED PROPERTY RIGHTS OVER ALMOST EVERYTHING ECONOMICALLY THE SITUATION IS CURRENTLY IN MUCH WORSE SHAPE THAN UNDER COMMUNISM ON THE OTHER HAND THE REDUCED MILITARY THREAT HAS BEEN A GREAT GAIN TO THE WEST CHINA IS FEARFUL OF SIMILAR EVENTS AND IT HAS DONE MUCH BETTER ECONOMICALLY WITH ITS REGIME OF POLITICAL OPPRESSION AND GRADUAL ECONOMIC LIBERALIZATION THAN THE RUSSIANS HAVE DONE WITH THEIR SUDDEN MOVE TOWARD DEMOCRACY OUR PRESSURE FOR ENHANCED POLITICAL FREEDOM IN CHINA MAY THEREFORE BE SELFSERVING BUT MAY NOT IMPROVE LIFE FOR THE CHINESE PEOPLE PERHAPS THE MOST DIFFICULT SITUATION OF ALL IS IN SOUTH AFRICA THE US AND OTHER WESTERN COUNTRIES HAVE BEEN PRESSING FOR MANY YEARS FOR A MOVE TO DEMOCRACY MANY PEOPLE SEEM TO BELIEVE THAT A POPULARLY ELECTED BLACK GOVERNMENT CAN BE ESTABLISHED PEACEFULLY AND WOULD BE ABLE TO TO MAINTAIN POLITICAL FREEDOMS CIVIL LIBERTIES AND SOME KIND OF ECONOMIC RIGHTS FOR ITS CITIZENS INCLUDING THE MINORITY WHITES CONSIDERING THE COUNTRY'S LEVEL AND DISTRIBUTION OF INCOME THE ETHNIC DIVISIONS AND THE POLITICAL AND ECONOMIC EXPERIENCES OF MOST OF THE COUNTRIES OF SUBSAHARA AFRICA THIS EVENT WOULD PERHAPS BE THE GREATEST POLITICAL ACCOMPLISHMENT IN HUMAN HISTORY TO PUT IT ANOTHER WAY IT'S NOT GOING TO HAPPEN MR BARRO A JOURNAL CONTRIBUTING EDITOR IS A PROFESSOR OF ECONOMICS AT HARVARD TO RATE THE LEVEL OF DEMOCRACY IN VARIOUS COUNTRY GROUPS THE AUTHOR USED DATA THAT EMPLOY AN INDEX OF POLITICAL DEMOCRACY RANGING FROM 0 TO 100 0 = PURE DICTATORSHIP 100 = TOTAL DEMOCRACY THE RATES ARE BASED ON SUBJECTIVE MEASURES OF POLITICAL RIGHTS SOURCE KENNETH BOLLEN POLITICAL DEMOCRACY CONCEPTUAL AND MEASUREMENT TRAPS STUDIES IN COMPARATIVE INTERNATIONAL DEVELOPMENT SPRING 1990 RAYMOND GASTIL FREEDOM IN THE WORLD GREENWOOD PRESS VARIOUS YEARS ROBERT SUMMERS AND ALAN HESTON NATIONAL BUREAU OF ECONOMIC RESEARCH SEE RELATED LETTER LETTERS TO THE EDITOR PROSPERITY NEEDS DEMOCRACY WSJ JAN 24 1994 9312140027 YY94 MM01 9401240040 931213 ENVIRONMENT FIRMS REVEAL MORE DETAILS OF ENVIRONMENTAL EFFORTS BUT STILL DON'T TELL ALL BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH FOR THE SECOND YEAR IN A ROW PPG INDUSTRIES INC PLANS TO PUBLISH AN ENTIRE ANNUAL REPORT ON ITS ENVIRONMENTAL PERFORMANCE THE DOCUMENT WILL LIST PENALTIES PAID FOR ENVIRONMENTAL VIOLATIONS THE AMOUNT OF HAZARDOUS WASTE THE CHEMICAL AND GLASS COMPANY PRODUCED AND OTHER TOPICS THAT MANY COMPANIES PREFER TO SIDESTEP BUT WHILE PPG'S EFFORT SEEMS A MODEL OF OPENNESS THE COMPANY IS SITTING ON A MUCH MORE DETAILED AUDIT OF ITS ENVIRONMENTAL ACTIVITIES THAT WILL NEVER SEE THE LIGHT OF DAY THE COMPANY IS TIGHTLIPPED ABOUT DETAILS REFUSING EVEN TO SAY WHAT IT PAYS FOR THE SURVEYS THE AUDIT PROCESS IS GOOD SAYS BYRON EDWARDS PPG'S DIRECTOR OF ENVIRONMENTAL COMPLIANCE ASSURANCE BUT WHAT YOU'RE DOING IS FINDING PROBLEMS AND THERE IS NO REAL BENEFIT FROM EXPOSING THIS TO THE WORLD MANY BIG COMPANIES LIKE PPG ARE RELEASING MORE INFORMATION THAN EVER ABOUT THEIR ENVIRONMENTAL EFFORTS THE COMPANIES FIGURE THEY GAIN PUBLIC RELATIONS MILEAGE BY HANDING OUT DETAILS ABOUT WHAT THEY'RE DOING TO CUT POLLUTION THEY'RE ALSO RESPONDING TO PRESSURE FROM WATCHDOG GROUPS AND REGULATORS WHICH ARE DEMANDING MORE DISCLOSURE BUT WHAT THE PUBLIC ACTUALLY LEARNS VARIES WIDELY SOME COMPANIES ARE REMARKABLY FRANK IN THEIR REPORTING FIGURING THEY'RE BETTER OFF PUTTING THEIR OWN SPIN ON THE INFORMATION WHILE OTHERS ARE MUCH MORE CAUTIOUS AND VIRTUALLY NOBODY LAYS OUT EVERYTHING A RECENT SURVEY OF THE S&P 500 BY THE WASHINGTONBASED INVESTOR RESPONSIBILITY RESEARCH CENTER FOUND THAT 80 OF THE RESPONDENTS CONDUCT SOME SORT OF ENVIRONMENTAL AUDITING BUT JUST 6 RELEASE SUMMARIES TO SHAREHOLDERS AND THEN ONLY ON SPECIAL REQUEST ENVIRONMENTALISTS GRUMBLE THAT THE NEW WAVE OF PUBLIC REPORTS IS CRAFTED TO PUT THE BEST LIGHT POSSIBLE ON THE COMPANY'S RECORD AND FREQUENTLY LIST INFORMATION AVAILABLE ELSEWHERE IF YOU WANT TO JUDGE A COMPANY'S ENVIRONMENTAL PERFORMANCE YOU SHOULD LOOK AT THESE REPORTS SAYS CHRISTOPHER FLAVIN OF THE WORLDWATCH INSTITUTE AN ENVIRONMENTAL THINK TANK BUT IT'S NOT ENOUGH MONSANTO CO PUBLISHES AN ENVIRONMENTAL ANNUAL REVIEW LISTING TOXIC CHEMICALS IT RELEASED OVER THE PAST YEAR THE TOXICS INVENTORY ITSELF HOWEVER HAS BEEN REQUIRED BY REGULATORS SINCE 1987 AND IS AVAILABLE TO ANYONE WHO REQUESTS IT THE MONSANTO REPORT ALSO SHOWS HOW MANY POUNDS OF POLLUTION ARE RELEASED BY INDIVIDUAL FACTORIES IN ONE CHART AND THE AMOUNT OF SPECIFIC TYPES OF CHEMICALS RELEASED BY THE COMPANY AS A WHOLE IN ANOTHER CHART BUT THE COMPANY OFFERS NO BREAKDOWN CHEMICAL BY CHEMICAL FOR INDIVIDUAL PLANTS THAT WOULD ENABLE PEOPLE TO DETERMINE IF THEY LIVE OR WORK NEAR A SOURCE OF DANGEROUS POLLUTION THAT INFORMATION IS AVAILABLE SAYS A SPOKESMAN BUT THEY HAVE TO WRITE TO US FOR IT AS FOR ITS MORE DETAILED ENVIRONMENTAL AUDITS MONSANTO KEEPS THOSE TO ITSELF OUR AUDITS ARE REALLY A MANAGEMENT TOOL FOR DIRECTORS AND SOME MANAGERS SAYS JOHN HENSHAW DIRECTOR OF QUALITY AND COMPLIANCE ASSURANCE NIAGARA MOHAWK POWER CORP PRODUCES AN ENVIRONMENTAL REPORT THAT SHOWS SPENDING ON ENVIRONMENTAL ACTIVITIES JUMPING TO AN ESTIMATED 74 MILLION IN 1993 FROM 39 MILLION IN 1985 BUT IN DISCUSSING THE NUCLEAR WASTE IT GENERATES THE NEW YORK STATE UTILITY DOES NOT MENTION HOW MUCH WASTE IT STORES OR THE COST ASSOCIATED WITH THE GROWING STOCKPILE OF COURSE THE ENVIRONMENTAL PROTECTION AGENCY DOESN'T REQUIRE ANY COMPANY TO PUBLISH REPORTS OR DISCLOSE THE CONTENTS OF ITS INTERNAL AUDITS ITS POLICY UNDER WHICH IT RESERVES THE RIGHT TO REVIEW AUDITS IF IT SUSPECTS WRONGDOING IS BASED ON THE IDEA THAT COMPANIES WILL BE MORE RIGOROUS IN MONITORING THEMSELVES IF THEY KNOW AUDIT RESULTS WON'T BE MADE PUBLIC MOST COMPANIES COMBINE CHECKS ON ENVIRONMENTAL HEALTH AND SAFETY SYSTEMS IN THEIR AUDITS MEASURING PERFORMANCE AGAINST A SET OF COMPANY OBJECTIVES OR REGULATORY REQUIREMENTS AND YET AUDITING REMAINS AN INEXACT SCIENCE WITH NO GENERALLY ACCEPTED STANDARDS AS A RESULT AUDITS CAN BE DIFFICULT TO INTERPRET OUTSIDE THE COMPANY THAT CONDUCTS THEM WHEN POLAROID CORP SET UP A SYSTEM TO CUT ITS GENERATION OF TOXIC CHEMICALS AND OTHER WASTES SIX YEARS AGO THE COMPANY'S MANAGERS WANTED TO BRING IN AN OUTSIDE EXPERT TO AUDIT THE RESULTS WE WANTED SOMETHING COMPARABLE TO THE WAY WE HAVE OUR FINANCIAL FIGURES EXAMINED SAYS HARRY FATKIN DIRECTOR OF HEALTH SAFETY AND ENVIRONMENT FOR THE CAMERA MAKER BUT I QUICKLY LEARNED THAT WAS VERY NAIVE WITHOUT RECOGNIZED STANDARDS MR FATKIN ADDS AUDITS CAN ALWAYS BE CHALLENGED AS INACCURATE OR INCOMPLETE BY SOMEONE USING DIFFERENT DEFINITIONS NONETHELESS SOME COMPANIES ARE ALREADY PUSHING TO CLOSE THE GAP BETWEEN WHAT THEY KNOW ABOUT THEIR ENVIRONMENTAL RECORD AND WHAT THEY REPORT POLAROID FOR INSTANCE REPORTS ON ALL THE TOXIC CHEMICALS AND OTHER POLLUTANTS IT RELEASES EVEN IN PARTS OF THE WORLD WHERE SUCH REPORTING ISN'T REQUIRED NORANDA FOREST INC A UNIT OF CANADA'S NORANDA INC CHARTS THE DIOXIN RELEASED BY ITS VARIOUS PAPER MILLS TO PUT THAT KIND OF INFORMATION IN A NEAT TABLE FOR THE WORLD TO SEE WAS REVOLUTIONARY WHEN NORANDA STARTED A FEW YEARS AGO SAYS LADD GREENO A SENIOR VICE PRESIDENT OF ARTHUR D LITTLE INC AND COAUTHOR OF FOUR BOOKS ON ENVIRONMENTAL AUDITING SOME COMPANIES ARE ALSO EXAMINING THEIR AUDITS TO SEE WHETHER MORE INFORMATION SHOULD BE REVEALED IN THE FUTURE MAKING AUDITS PUBLIC IS A WAY TO SHOW YOU'RE PUTTING EVERYTHING ON THE TABLE IT BUILDS PUBLIC TRUST SAYS ANTHONY MONTRONE AN ARTHUR D LITTLE CONSULTANT WHO HEADS AN AUDIT OF THE ALASKA OIL PIPELINE WITH CONTROVERSY SURROUNDING THE PIPELINE'S ENVIRONMENTAL RECORD THE SEVEN OIL COMPANIES THAT OWN IT HAVE VOWED TO MAKE AUDIT RESULTS PUBLIC MR GREENO AGREES EVEN MORE OPENNESS ON ENVIRONMENTAL ISSUES IS COMING THE SMARTER COMPANIES REALIZE THAT MORE DISCLOSURE NOT JUST OF AUDIT RESULTS BUT OF ENVIRONMENTAL PERFORMANCE IN GENERAL IS INEVITABLE HE SAYS SOME COMPANIES HAVE NO CHOICE IN THE MATTER EARLIER THIS YEAR THE EPA REACHED A SETTLEMENT IN A CASE AGAINST UNITED TECHNOLOGIES CORP FOR VARIOUS ENVIRONMENTAL ABUSES THAT INCLUDED REQUIRING THE COMPANY TO UNDERGO EXTENSIVE ENVIRONMENTAL AUDITS BY OUTSIDE CONSULTANTS SEE RELATED LETTER LETTERS TO THE EDITOR ENVIRONMENTAL AUDITS WSJ JAN 24 1994 9312130024 YY94 MM01 9401210181 931215 TECHNOLOGY & HEALTH PEOPLE LACKING HEALTH BENEFITS INCREASED IN '92 BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NUMBER OF AMERICANS WITHOUT HEALTH INSURANCE CLIMBED TO A RECORD 389 MILLION LAST YEAR ACCORDING TO A NEW REPORT BASED ON CENSUS BUREAU DATA THAT FIGURE IS UP MORE THAN TWO MILLION FROM 1991 AND UP 42 MILLION FROM 1989 ACCORDING TO THE REPORT WHICH WAS PREPARED BY THE EMPLOYEE BENEFITS RESEARCH INSTITUTE THE RISING NUMBER OF UNINSURED PEOPLE IS LIKELY TO FUEL THE ARGUMENTS OF PRESIDENT CLINTON AND OTHERS WHO INSIST THAT ANY HEALTHREFORM LEGISLATION SHOULD GUARANTEE COVERAGE FOR ALL AMERICANS IN ADDITION TO THE TRAGEDY OF ANOTHER TWO MILLION PEOPLE UNINSURED THE OTHER MESSAGE HERE IS TO PEOPLE WITH INSURANCE IT'S THEIR BILLS THAT ARE GOING TO GO UP BECAUSE OF THIS SAID BOB BOORSTIN A WHITE HOUSE SPOKESMAN THIS MAKES THE CASE FOR UNIVERSAL COVERAGE ONCE AGAIN NO DOUBT ABOUT IT THE FIGURE OF 389 MILLION PEOPLE IS MEANT TO BE A SNAPSHOT IN TIME SHOWING HOW MANY PEOPLE WERE WITHOUT INSURANCE ON ANY GIVEN DAY IN 1992 OTHER REPORTS SHOW THAT A FAR LARGER NUMBER AROUND 50 MILLION PEOPLE LACKED HEALTH COVERAGE AT SOME POINT DURING THE YEAR AND A SUBSTANTIALLY SMALLER NUMBER ABOUT 25 MILLION PEOPLE WERE WITHOUT HEALTH INSURANCE FOR THE ENTIRE YEAR THE EBRI REPORT FOUND THAT THE NUMBER OF PEOPLE RECEIVING EMPLOYERPROVIDED HEALTH COVERAGE PLUMMETED BY TWO MILLION TO 148 MILLION IN 1992 FROM 1991 THAT MEANS THAT 625 OF THE NONELDERLY US POPULATION HAD EMPLOYER COVERAGE IN 1992 DOWN FROM 641 IN 1991 MEANWHILE THE NUMBER OF NONELDERLY PEOPLE RECEIVING COVERAGE FROM PUBLICHEALTH PROGRAMS JUMPED TO 334 MILLION IN 1992 FROM 317 MILLION IN 1991 THE EROSION OF EMPLOYER COVERAGE ALSO IS LIKELY TO ADD GRIST TO THE ARGUMENTS OF MR CLINTON AND OTHERS WHO ADVOCATE REQUIRING ALL EMPLOYERS TO PAY PART OF THE COST OF THEIR WORKERS' HEALTH INSURANCE THIS SOCALLED EMPLOYER MANDATE HAS BECOME ONE OF THE MOST CONTROVERSIAL ISSUES IN THE HEALTHCARE DEBATE YESTERDAY THREE PHYSICIAN GROUPS HELD A NEWS CONFERENCE TO DENOUNCE THE RECENT DECISION BY THE AMERICAN MEDICAL ASSOCIATION TO BACK AWAY FROM ITS EARLIER SUPPORT OF AN EMPLOYER MANDATE THE AMA'S MODIFICATION OF ITS LONGSTANDING SUPPORT FOR EMPLOYER MANDATES SUGGESTS SELFINTEREST OVER HEALTH INTERESTS ACCORDING TO ROSI SWEENEY VICE PRESIDENT OF SOCIAL ECONOMIC AND POLICY ANALYSIS AT THE AMERICAN ACADEMY OF FAMILY PHYSICIANS THE NEWS CONFERENCE WAS ORGANIZED BY THE HEALTH CARE REFORM PROJECT A GROUP OF UNIONS MEDICAL GROUPS PUBLICINTEREST ORGANIZATIONS AND A FEW CORPORATIONS THAT ARE WORKING TO CHANGE THE HEALTH SYSTEM THE OTHER DOCTORS' GROUPS SPEAKING OUT AGAINST THE AMA AND IN FAVOR OF PRESIDENT CLINTON'S HEALTHCARE PROPOSALS WERE THE AMERICAN COLLEGE OF PHYSICIANS AND THE AMERICAN ACADEMY OF PEDIATRICS ALL THREE GROUPS GENERALLY HAVE ENDORSED THE CLINTON PLAN IN RECENT MONTHS THE EBRI REPORT SAID THAT MORE THAN A QUARTER OF THE POPULATION LACKS INSURANCE IN FOUR STATES LOUISIANA OKLAHOMA TEXAS AND NEVADA AND THE DISTRICT OF COLUMBIA SEE RELATED LETTER LETTERS TO THE EDITOR IMPOVERISHED BY MEDICAL INSURANCE WSJ JAN 21 1994 9312150024 YY94 MM01 9401210180 931227 SYRIA DIARY ASSAD HAS A DEAL WE CAN REFUSE BY PAUL A GIGOT DAMASCUS SYRIA SECRETARY OF STATE WARREN CHRISTOPHER MAY BE HAVING HIS TROUBLES BUT DON'T MENTION THAT HERE THE SYRIANS THINK HE'S DOING GREAT WORK A GOVERNMENT SPOKESMAN SAYS HIS RECENT TRIP HERE LEFT THE SYRIANS QUITE PLEASED AND WHY NOT MR CHRISTOPHER BESTOWED ON SYRIAN STRONGMAN HAFEZ ASSAD A COVETED MEETING NEXT MONTH WITH PRESIDENT CLINTON THE GESTURE IS SUPPOSED TO MAKE MR ASSAD MORE AMENABLE TO MAKING PEACE WITH ISRAEL THE SYRIANS IN TURN ARE COUNTING ON MR CHRISTOPHER TO PRESSURE AN ISRAELI GOVERNMENT WHOSE CITIZENS ARE SKEPTICAL ABOUT HANDING THE STRATEGIC GROUND OF THE GOLAN HEIGHTS BACK TO A DICTATOR AFTER MY OWN NINEDAY MIDEAST TOUR ORGANIZED BY THE WASHINGTON INSTITUTE FOR NEAR EAST POLICY THAT INCLUDED A VISIT TO THE ISRAELI GOLAN AND TO SYRIA I THINK MAYBE MR CHRISTOPHER SHOULD SEEK A BETTER CLASS OF ADMIRERS TO TRAVEL FROM ISRAEL THROUGH AMMAN JORDAN AND THEN TO DAMASCUS IS TO WALK THROUGH A POLITICAL TIME WARP ISRAEL IS A BUMPTIOUS WELTER OF DEBATE NOISIER THAN EVEN MOST OTHER DEMOCRACIES JORDAN IS SURPRISINGLY OPEN TOO A CONTROLLED DEMOCRACY TO BE SURE UNDER KING HUSSEIN BUT WITH A SPIRITED PRESS AND LITTLE RELUCTANCE TO CRITICIZE THE GOVERNMENT ENTERING SYRIA HOWEVER IS LIKE TURNING ON A NOSTALGIA CHANNEL PROGRAMMED BY ERICH HONECKER THE EXPERIENCE STARTS AT THE JORDAN BORDER POST WHICH IS IMPOSSIBLE TO MISS BECAUSE IT INCLUDES A GIANT PHOTO OF PRESIDENT ASSAD THIS PROVES TO BE TRUTH IN ADVERTISING BECAUSE THE SAME ASSAD PHOTO IS EVERYWHERE IN SYRIA ON BUSES HANGING FROM BUILDINGS IN OFFICES THE FOREIGN MINISTER HAS TWO BEHIND HOTEL RECEPTION DESKS OTHER COUNTRIES HAVE HAD CULTS OF PERSONALITY BUT MOST OF THOSE HAVE HAD A KIND OF DISEMBODIED FEEL MAO LENIN WHAT'S EERIE ABOUT THE ASSAD PHOTO IS ITS ORDINARINESS HE WEARS A WHITE SHIRT COAT AND TIE AND JUST THE HINT OF A SARDONIC SMILE IT'S AS IF JOHN GOTTI STAGED A COUP AND HAD HIS PHOTOGRAPH MOUNTED EVERYWHERE ONE FOREIGN DIPLOMAT DESCRIBES SYRIA AS NICARAGUA WITH ARABS A DICTATORSHIP WITHOUT THE BRAVE NEW WORLD EFFICIENCY ONE OF OUR GROUP QUIPS AMID TRAFFIC THAT HE'S NEVER SEEN SO MANY '57 BELAIRS THE DRIVE FROM THE BORDER TO DAMASCUS PASSES SAM MISSILE SITES BUT FEW CARS OF ANY TYPE THIS CONTRAST ISN'T SURPRISING SINCE THE SYRIAN GOVERNMENT SPENDS MORE THAN HALF ITS BUDGET ON THE MILITARY IT CERTAINLY DOESN'T SKIMP ON WAR MEMORIALS INCLUDING THE SPANKING NEW TOMB OF THE UNKNOWN SOLDIER THE EXHIBITS INCLUDE DIORAMAS COMMEMORATING FAMOUS SYRIAN BATTLES GOING BACK TO THE ARAB CONQUEST OF BYZANTIUM AD 623 THE LAST DIORAMA EXTOLS AN ATTACK AS OUR GUIDE PUTS IT BY HIS EXCELLENCY PRESIDENT ASSAD ON THE ZIONIST OCCUPATION IN 1973 TO ADD TO THE CINEMA VERITE EFFECT THE SCENE INCLUDES CAPTURED WAR MATERIAL FROM THE ENEMY COMPLETE WITH AMERICAN MARKINGS EVERYONE WAS TOO POLITE TO ASK THE GUIDE HOW THAT 1973 WAR EVENTUALLY ENDED THE POLITICAL LIFE OF SYRIA HAS A SIMILAR DIORAMA QUALITY HE HAS THIS COUNTRY LOCKED UP TIGHT SAYS ONE DIPLOMAT THE COUNTRY IS RUN BY ABOUT 20 PEOPLE ALL OF THEM REPORTING TO MR ASSAD WHO GOVERNS ON THE HUBANDSPOKE MODEL HE MEETS WITH EACH OF THE 20 SEPARATELY BUT ALMOST NEVER AS A GROUP THERE IS AN ISLAMIC POLITICAL UNDERGROUND BUT IT IS PENETRATED BY ONE OR MORE OF MR ASSAD'S 12 INTELLIGENCE AGENCIES THE MEDIA ARE SO CONTROLLED THAT MR ASSAD EVEN JAMS JORDANIAN TV THERE IS TO BE FAIR SOMETHING OF AN ECONOMIC OPENING AND THE STREETS BUSTLE WITH COMMERCE BUT EVEN THIS IS EXPLAINED NOT AS A LIBERALIZATION BUT IN TERMS OF THE ECONOMIC GENIUS OF PRESIDENT ASSAD ECONOMICS MINISTER MOHAMMAD IMADI WHO OTHERWISE TALKS SENSIBLY ABOUT ECONOMICS EXPLAINS THAT THE CHANGE IN POLICY OCCURRED WHEN MR ASSAD REPLACED CLASS STRUGGLE WITH NATIONAL UNITY THEORY AFTER COMING TO POWER IN 1970 LOOK FOR THAT ECONOMICS NOBEL SOON HE THUS LEAPS OVER THE SOCIALIST YEARS FROM 1970 TO 1986 WHEN THE REFORM ACTUALLY BEGAN TO HEAR OFFICIAL SYRIANS DESCRIBE IT THEIR NATION'S LIFE CAN BE SUMMED UP AS ONE MAN ONE IDEA ONCE YET THIS IS THE COUNTRY THAT MR CHRISTOPHER NOW WANTS ISRAEL TO TRADE THE TANGIBLE OF THE GOLAN HEIGHTS TO IN RETURN FOR THE INTANGIBLE OF PEACE MR CHRISTOPHER'S AIDES LIKE TO SAY MR ASSAD HAS MADE A STRATEGIC DECISION FOR PEACE BY THIS THEY MEAN THAT HAVING LOST HIS SOVIET PATRON AND HAVING WATCHED US MILITARY MIGHT IN THE GULF WAR MR ASSAD KNOWS HIS MILITARY THREAT TO ISRAEL IS GONE HE WANTS A BETTER RELATIONSHIP WITH THE US AND THE ONLY WAY TO GET IT IS FIRST BY MAKING PEACE BUT WHAT KIND OF PEACE ISRAEL WOULD HAVE TO TURN OVER THE GOLAN WHICH INCLUDES VALUABLE LISTENING POSTS THAT CAN TRACK THE BALLISTIC MISSILES SYRIA CONTINUES TO IMPORT FROM NORTH KOREA BUT HAFEZ ASSAD IS NOT ABOUT TO DO AN ANWAR SADAT AND SPEAK BEFORE THE ISRAELI KNESSET SYRIAN FOREIGN MINISTER FARUQ SHARA GETS THE SHAKES JUST TRYING TO ANSWER IF SYRIA WOULD ALLOW AN ISRAELI EMBASSY IN DAMASCUS WHICH WOULD SEEM A MINIMAL STANDARD OF CIVILITY MAYBE THIS IS WHY NO ISRAELI WE TALKED TO LEFT OR RIGHT HAS SPOTTED THE SAME SYRIAN STRATEGIC PEACE DECISION THAT AMERICANS CLAIM TO SEE ISRAELIS ALSO HAVE A POLITICAL ATTACHMENT TO THE GOLAN THAT THEY DON'T HAVE EVEN TO PARTS OF THE WEST BANK EVEN IN SLEEPY JERICHO SOON TO BE TURNED OVER TO YASSER ARAFAT ONE CAN SEE AN ISRAELI SIGN PROCLAIMING THE NATION WITH THE GOLAN AMID THE TURMOIL OF TRYING TO IMPLEMENT HIS PACT WITH MR ARAFAT ISRAELI PRIME MINISTER YITZHAK RABIN'S COALITION MIGHT NOT SURVIVE A SECOND SUCH PEACE MR CHRISTOPHER IS UNDETERRED HE WANTS THE FOREIGNPOLICY SUCCESS THAT A SYRIAISRAEL PACT WOULD BRING AND HE EXPECTS TO GET IT IN THE NEXT YEAR THAT MAY BE ALL RIGHT IF ISRAEL IS READY TO TAKE THE RISK BUT THE US ROLE SHOULDN'T BE TO TWIST THE ARM OF A FRIEND IF MR ASSAD IS SO DESPERATE TO BE TAKEN OFF THE US TERRORISM LIST AND THUS TO EXPAND ECONOMIC TIES THE ARM TO TWIST IS THE SYRIAN'S BUT THIS WOULD REQUIRE USING THE STICKS OF DIPLOMACY RATHER THAN THE WARM GESTURES AND CARROTS THE CLINTON ADMINISTRATION SEEMS TO PREFER DIPLOMATS INCLINED TO TRUST SYRIA'S MERE PROMISE OF PEACE MIGHT KEEP IN MIND WHAT HAPPENED AT A DAMASCUS MOSQUE SOME COLLEAGUES VENTURED INSIDE RESPECTFULLY LEAVING THEIR SHOES AT THE DOOR WHEN THEY RETURNED ONE PAIR OF SHOES WAS MISSING WHEN MAKING PEACE WITH HAFEZ ASSAD KEEP AN EYE ON YOUR SHOES SEE RELATED LETTER LETTERS TO THE EDITOR BE WARY OF SYRIA WSJ JAN 21 1994 9312270082 YY94 MM01 9401210177 931230 LOSING PATIENTS PHYSICIANS FIGHT BACK AS INSURERS CUT THEM FROM HEALTH NETWORKS AS MANAGEDCARE PLANS CITE THE NEED TO TRIM COSTS DOCTORS SEEK MORE CLOUT THE BIG TARGETS SPECIALISTS BY RON WINSLOW AND EDWARD FELSENTHAL STAFF REPORTERS OF THE WALL STREET JOURNAL FOR ROBERT MAIDENBERG 1993 PROVIDED A WAKEUP CALL HIS OWN MEDICAL PRACTICE WAS A TARGET OF THE NATIONAL DRIVE TO CONTROL HEALTHCARE COSTS IN JULY PRUDENTIAL INSURANCE CO OF AMERICA NOTIFIED HIM IT WAS DROPPING HIM FROM ITS DISCOUNT PHYSICIAN NETWORK IN HOUSTON ENDING A SIXYEAR RELATIONSHIP TWO MONTHS LATER A SIMILAR LETTER ARRIVED FROM AETNA LIFE & CASUALTY CO TOGETHER THE ACTIONS WHICH HAVE YET TO TAKE EFFECT MEAN THAT SEVERAL HUNDRED OF HIS PATIENTS WILL HAVE TO PAY MORE TO SEE HIM OR SWITCH TO ANOTHER DOCTOR DR MAIDENBERG SAYS THE MOVES THREATEN MORE THAN 20 OF HIS PRACTICE WE NEVER HAD ANY WARNING THERE WAS A PROBLEM HE SAYS THIS CAME AS A TOTAL SURPRISE AS THE NATION'S HEALTHCARE SYSTEM UNDERGOES TUMULTUOUS CHANGE INSURANCE COMPANIES AND HEALTHMAINTENANCE ORGANIZATIONS ACROSS THE US ARE SENDING DEAR DOCTOR LETTERS TO HUNDREDS OF PHYSICIANS TELLING THEM THEIR SERVICES ARE NO LONGER NEEDED SUCH DECISIONS ARE MAKING CLEAR HOW QUICKLY POWER IN MEDICAL CARE IS SHIFTING FROM ONCEINDEPENDENT PHYSICIANS TO HUGE ORGANIZATIONS THAT CONTROL DOCTORS' ACCESS TO PATIENTS JUST A FEW YEARS AGO MOST DOCTORS WOULD HAVE PAID LITTLE ATTENTION TO SUCH A NOTICE NO SINGLE NETWORK ACCOUNTED FOR ENOUGH OF A DOCTOR'S PRACTICE TO MATTER MUCH AND BEING TIED TO A DISCOUNT NETWORK WAS A NUISANCE ANYWAY MANY DOCTORS PUT UP WITH IT ONLY AS A CONVENIENCE TO PATIENTS WHOSE EMPLOYERS PRESSURED THEM TO JOIN MANAGEDCARE PLANS BUT LAST YEAR NEARLY 90 MILLION AMERICANS GOT THEIR HEALTH CARE EITHER THROUGH NETWORKS KNOWN AS PREFERREDPROVIDER ORGANIZATIONS PPOS OR THROUGH HMOS THIS WAS AN INCREASE OF ALMOST 20 MILLION FROM 1991 AND UP FROM JUST 25 MILLION IN 1985 THE CLINTON HEALTHREFORM PLAN EXPECTED TO TOP THE WASHINGTON AGENDA NEXT YEAR CALLS FOR EVEN MORE RELIANCE ON ORGANIZED NETWORKS OF DOCTORS AND HOSPITALS TO FINANCE AND DELIVER CARE SUDDENLY THOUSANDS OF PHYSICIANS LIKE DR MAIDENBERG FIND THEMSELVES DEPENDENT ON THEIR TIES TO BIG INSURERS FOR THEIR PATIENTS AND THEIR LIVELIHOODS NOBODY SEEMED TO REALIZE THE ACTUAL POTENTIAL OF WHAT WAS HAPPENING SAYS HAROLD FIELDS DR MAIDENBERG'S PARTNER AT VILLAGE FAMILY PRACTICE IN HOUSTON IT LOOKS AS IF IT'S SNOWBALLING IN GENERAL THE SNOWBALL BEGAN TO FORM IN THE MID1980S WHEN IN RESPONSE TO DEMAND FROM LARGER EMPLOYERS INSURERS BEGAN SETTING UP PPOS THESE GROUPS OF DOCTORS AND HOSPITALS CONTRACT WITH THE INSURERS TO PROVIDE SERVICES AT A DISCOUNT FROM NORMAL FEES IN RETURN FOR A LARGER VOLUME OF PATIENTS INITIALLY THE INSURERS SIGNED UP ALMOST ANY DOCTOR OR HOSPITAL THAT WOULD ACCEPT DISCOUNTED FEES IN AN EFFORT TO ESTABLISH AS BROAD A NETWORK AS POSSIBLE IN PART TO PREVENT EMPLOYEES FROM HAVING TO CHANGE DOCTORS BUT NEW DEMANDS FROM EMPLOYERS COMPETITION FROM HMOS AND OTHER FORCES ARE INCREASING PRESSURE ON NETWORKS TO REDUCE COSTS AT THE SAME TIME MANY DOCTORS WHO HAVE RESISTED JOINING MANAGEDCARE ORGANIZATIONS NOW ARE CLAMORING TO GET IN PROVIDING HEALTHPLAN ADMINISTRATORS WITH A WIDER CHOICE OF DOCTORS AS THEY SEEK TO RECONFIGURE THEIR NETWORKS PHYSICIANS AND HOSPITALS GENERALLY HAVE CONTRACTS WITH SEVERAL NETWORKS AND HAVE TRADITIONAL FEEFORSERVICE AND MEDICARE PATIENTS AS WELL WHILE GETTING BOOTED FROM A NETWORK OR TWO CAN MEAN A HEFTY LOSS OF INCOME IT ISN'T THE SAME AS GETTING FIRED FROM A JOB NEVERTHELESS INSURERS INCREASINGLY ARE SEEKING MORE EXCLUSIVE RELATIONSHIPS WITH DOCTORS AND IN THE FUTURE FAILURE TO BELONG TO A NETWORK COULD BE AKIN TO HAVING NO PRACTICE AT ALL WE'RE LOOKING TO HAVE GOOD WORKING RELATIONSHIPS WITH THE RIGHT SET OF PARTNERS SAYS STEVEN I UDVARHELYI VICE PRESIDENT MEDICAL SERVICES AT PRUDENTIAL IN SOME CASES THAT MEANS PREVIOUS RELATIONSHIPS ARE ENDED AND NEW ONES ARE STARTED IT ALSO MEANS CONTROVERSY IN HOUSTON DRS MAIDENBERG AND FIELDS WERE AMONG DOZENS OF PHYSICIANS RECENTLY TERMINATED BY PRUDENTIAL AND AETNA WHICH OPERATE COMPETING MANAGEDCARE NETWORKS THERE DOCTORS HAVE TAKEN BOTH COMPANIES TO COURT IN CALIFORNIA THE SACRAMENTO PHYSICIANS NETWORK A 700DOCTOR GROUP THAT CONTRACTS WITH HMOS DROPPED ABOUT A DOZEN PSYCHIATRISTS AND PROVOKED 100 OTHER SPECIALISTS INTO LEAVING BY IMPOSING A NEW LESSFAVORABLE PAYMENT POLICY IN BOSTON PILGRIM HEALTH CARE AN HMO ENDED A 10YEAR AFFILIATION WITH NEW ENGLAND MEDICAL CENTER A BIG TEACHING AND RESEARCH HOSPITAL AND ITS 300 DOCTORS SIMILAR ACTIONS AFFECTING THOUSANDS OF DOCTORS ARE OCCURRING IN SUCH AREAS AS FLORIDA NEW JERSEY ILLINOIS AND WASHINGTON DC EVERY NETWORK IN THE COUNTRY IS REENGINEERING TO BE THE MOST COSTEFFECTIVE WELLMANAGED PROGRAM IT CAN BE SAYS SID STOLZ PRINCIPAL AT TOWERS PERRIN THE CONSULTING FIRM IF THERE'S NO TURMOIL IN YOUR NETWORK TODAY IT MEANS THE WORLD IS PASSING YOU BY IN SOME CASES THE INSURERS AIDED BY COMPUTER ANALYSES OF MEDICALCLAIMS DATA ARE PURGING DOCTORS WHO ORDER MORE EXPENSIVE TESTS FOR EXAMPLE THAN OTHER DOCTORS OTHER TIMES CHANGES ARE DICTATED BY GEOGRAPHIC CONCERNS MARKETING STRATEGIES CONTRACT DISPUTES OR MERGERS WHATEVER THE REASONS THE TERMINATIONS REFLECT AN INTENSE SCRAMBLE AMONG HEALTH PLANS DOCTORS AND HOSPITALS AS THEY VIE FOR COMPETITIVE ADVANTAGE AND ECONOMIC SURVIVAL IN THE FASTCHANGING HEALTHCARE MARKET INDEED INSURERS SAY THE ABILITY TO SELECT AND DESELECT DOCTORS IS AT THE HEART OF THEIR ABILITY TO DEVELOP NETWORKS THAT PROVIDE HIGHQUALITY COSTEFFECTIVE CARE WE THINK WE OWE THAT TO OUR CUSTOMERS AND THE PEOPLE WHO ARE COVERED UNDER OUR PLAN SAYS ROBERT L DAWSON A VICE PRESIDENT AT AETNA HEALTH PLANS IN HOUSTON IT IS REALLY WHAT EMPLOYERS AND ULTIMATELY THE CONSUMERS ARE ASKING FOR IN A MANAGEDCARE PROGRAM IN SOME COMMUNITIES DOCTORS ARE ADOPTING RATHER THAN FIGHTING SUCH PRACTICES THEY ARE ALLYING WITH COLLEAGUES AND HOSPITALS TO FORM SELECTIVE ASSOCIATIONS OF THEIR OWN ON BOTH MEDICAL AND ECONOMIC GROUNDS TO SURVIVE ECONOMICALLY WE NEED TO BE ABLE TO SELECT RECRUIT OR LINK UP WITH PHYSICIANS WHO ARE OF LIKE MIND SAYS KATHLEEN WEAVER AN INTERNIST IN PORTLAND ORE IN OTHERS DOCTORS AND PATIENTS ARE UP IN ARMS WHILE MOST DOCTORS ACKNOWLEDGE THAT HEALTH PLANS NEED DISCRETION IN DECIDING WHOM TO CONTRACT WITH THEY MAINTAIN THAT MANY CONTRACTS ARE ENDED ABRUPTLY AND WITHOUT DUE PROCESS AND DOCTORS CLAIM THEY ARE EXPECTED TO MEET UNSPECIFIED FINANCIAL TARGETS THAT HAVE LITTLE BEARING ON PHYSICIAN COMPETENCE OR THE NEEDS OF PATIENTS IF YOU ARE A CHEAP DOCTOR YOU'RE GOING TO BE IN THE PLAN WHETHER YOU'RE GOOD OR BAD SAYS KIRK JOHNSON GENERAL COUNSEL OF THE AMERICAN MEDICAL ASSOCIATION IN HOUSTON THE TEXAS MEDICAL ASSOCIATION FILED SEPARATE LAWSUITS TO FIGHT BOTH AETNA'S AND PRUDENTIAL'S PLANS TO DROP AT LEAST 30 DOCTORS FROM THEIR NETWORKS AMONG OTHER THINGS THE DOCTORS ARE ADVANCING A NOVEL ARGUMENT THAT THE DISMISSALS ARE AN INAPPROPRIATE INTERFERENCE WITH THE DOCTORPATIENT RELATIONSHIP MEANWHILE A COMMUNICATIONS WORKERS OF AMERICA LOCAL ALSO IN HOUSTON HAS MOUNTED A PETITION DRIVE TO PROTEST THE PRUDENTIAL ACTION THE UNION SAYS IT HOPES TO PREVENT ABOUT 2500 OF ITS MEMBERS AND DEPENDENTS FROM HAVING TO FIND NEW DOCTORS NEITHER AETNA NOR PRUDENTIAL WILL COMMENT ON SPECIFIC CASES BUT BOTH SAY AFFECTED PATIENTS CAN CONTINUE TO SEE THEIR DOCTORS IF THEY PAY MORE OF THE COST THEMSELVES IN EACH INSTANCE THE INSURERS ADD THE TERMINATIONS INVOLVED LESS THAN 10 OF THE PRIMARYCARE DOCTORS IN THEIR HOUSTON PLANS THE AETNA TERMINATIONS HAVE BEEN HELD UP PENDING DISCUSSIONS BETWEEN THE PARTIES APART FROM POCKETBOOK AND PATIENT ISSUES SOME DOCTORS SEE THE DISMISSALS AS PART OF A BROADER HIGHSTAKES BATTLE BETWEEN INSURERS AND PHYSICIANS OVER THE CONTROL OF MEDICINE ITSELF IF STRICTLY BUSINESS CONSIDERATIONS ARE GOING TO DETERMINE THE EMPLOYMENT OF PHYSICIANS AND HOW THEY ARE MANAGED SAYS ARNOLD RELMAN FORMER EDITOR OF THE NEW ENGLAND JOURNAL OF MEDICINE THEN I THINK PATIENTS ARE GOING TO SUFFER SOME DOCTORS ARE DROPPED BECAUSE THEY HAVE ONLY A HANDFUL OF A HEALTH PLAN'S PATIENTS OR PRACTICE IN A NEIGHBORHOOD WHERE THE PLAN HAS FEW MEMBERS IF MEMBERS ARE SPREAD OVER TOO LARGE A NETWORK ADMINISTRATIVE COSTS RISE AND THE PLAN ITSELF CAN'T DELIVER TO DOCTORS THE PROMISED VOLUME OF PATIENTS NECESSARY TO COMPENSATE FOR DISCOUNTS BUT THE AETNA CASE SUGGESTS THAT EVEN DOCTORS WHO APPARENTLY HAVE PLENTY OF PATIENTS ARE VULNERABLE IF THEY ARE TOO EXPENSIVE USING A PROCESS KNOWN AS ECONOMIC CREDENTIALING AETNA'S HOUSTON NETWORK ENDED ITS CONTRACTS WITH SOME DOCTORS BASED IN PART ON A COMPUTERIZED RANKING OF THEIR ECONOMIC PERFORMANCE I WAS TOLD I WAS THE 16TH MOST EXPENSIVE DOCTOR OUT OF 17 IN THE AREA SAYS DR FIELDS HIS PARTNER DR MAIDENBERG LEARNED HE WAS DROPPED FROM THE NETWORK IN PART BECAUSE THE TOTAL COST OF CARE DELIVERED TO HIS PATIENTS OVER THE YEAR ENDING LAST MARCH 31 WAS 11000 OVER BUDGET THAT'S ABOUT 35 A DAY HE SAYS THE DOCTORS WHO TOGETHER SAY THEY CARE FOR MORE THAN 200 AETNACOVERED FAMILIES MAINTAIN THEY WEREN'T GIVEN ANY WARNING THAT THEIR PERFORMANCE WAS OUT OF LINE OR GIVEN A CHANCE TO ADJUST OR DEFEND THEIR PRACTICE I DIDN'T EVEN KNOW WHAT THE BUDGET WAS DR MAIDENBERG SAYS DOCTORS AT RISK OF BEING DROPPED FROM NETWORKS FOR FAILING TO MEET UNKNOWN FINANCIAL TARGETS MIGHT BE INDUCED TO WITHHOLD CARE THEIR PATIENTS NEED HE ADDS BOTH DOCTORS ARE PLAINTIFFS IN THE SUIT AGAINST AETNA AETNA SAYS IT DOES PROVIDE PRIMARYCARE DOCTORS WITH DATA SHOWING HOW THEIR PERFORMANCE COMPARES WITH THOSE OF OTHER PHYSICIANS IN THE AREA AND IT SAYS ECONOMIC PERFORMANCE IS JUST ONE OF SEVERAL FACTORS IN A DECISION TO DISMISS A DOCTOR AT SACRAMENTO PHYSICIANS NETWORK AN OVERLOAD OF SPECIALISTS PROMPTED AN EFFORT TO SHED MORE THAN 100 DOCTORS WITH MANAGEDCARE ORGANIZATIONS TRYING TO SAVE MONEY BY STEERING PATIENTS TO FAMILY DOCTORS THE NETWORK'S RATIO OF FIVE SPECIALISTS TO EVERY PRIMARYCARE DOCTOR WAS A HUGE LIABILITY THE RATIO THAT REALLY WORKS BEST IS 15 OR 2 SPECIALISTS FOR EVERY PRIMARYCARE DOCTOR SAYS ROBERT BENNETT EXECUTIVE DIRECTOR SOME HMOS AIM FOR A ONETOONE RATIO DIFFICULTY KEEPING TABS ON TREATMENTS THAT SPECIALISTS WERE PRESCRIBING CONTRIBUTED TO MILLIONS OF DOLLARS IN FEES THE SACRAMENTO NETWORK HADN'T BUDGETED FOR AND SO FAR HASN'T BEEN ABLE TO PAY MR BENNETT SAYS BUT LOPPING OFF DOCTORS CAUSED MASSIVE DISRUPTION OF PATIENT CARE SAYS IRWIN LYONS A FORMER SPN PSYCHIATRIST WHO SAYS HE LOST MORE THAN A THIRD OF HIS PATIENTS IN THE SWITCH AT NEW ENGLAND MEDICAL CENTER A DEAR DOCTOR LETTER FROM PILGRIM HEALTH CARE STATED SPECIFICALLY THAT THE HMO HAD NO COMPLAINTS ABOUT EITHER THE COST OR QUALITY OF SERVICES THE HOSPITAL AND ITS PHYSICIANS PROVIDED RATHER IT SAID STRATEGIC CONCERNS PROMPTED THE DECISION THE ACTION WHICH IS EFFECTIVE FEB 1 1995 CAME SHORTLY AFTER PILGRIM ADDED TWO OTHER HOSPITALS INCLUDING MASSACHUSETTS GENERAL TO ITS NETWORK AND WAS NECESSARY TO ESTABLISH A MORE RESTRICTIVE GROUP SAYS GEOFFREY COFFMAN PILGRIM'S VICE PRESIDENT OF NETWORK DEVELOPMENT WE LOOKED AT THINGS LIKE MARKETABILITY AND STRATEGY IN DECIDING WHICH HOSPITAL TO DROP FOR DAVID FULTON A PEDIATRIC CARDIOLOGIST THE MOVE COULD FORCE THE END OF A SEVENYEAR RELATIONSHIP WITH THE FAMILY OF A 12YEAROLD GIRL WHO UNDERWENT MAJOR HEART SURGERY AT AGE FIVE HAS A PACEMAKER AND NEEDS FREQUENT CHECKUPS IT'S EXTREMELY DISCOURAGING FOR PEOPLE WHO TRY TO TAKE CARE OF PATIENTS DR FULTON SAYS IT'S THE FEELING THAT WE HAVE ZERO CONTROL THAT WE'RE AT THE MERCY OF WHOEVER DECIDES THEY WANT TO CUT SOME SORT OF DEAL FOR A DOCTOR DROPPED SUDDENLY THE FIRST RECOURSE IS OFTEN A DIRECT APPEAL TO PLAN OFFICIALS YET NAVIGATING THE BUREAUCRACY CAN BE AN EXERCISE IN FUTILITY DR LYONS THE SACRAMENTO PSYCHIATRIST SAYS HE TRIED FOR WEEKS TO FIND OUT WHY HE HAD BEEN EXCLUDED FROM THE GROUP THAT TOOK OVER SACRAMENTO PHYSICIAN NETWORK'S MENTALHEALTH PRACTICE FINALLY THE GROUP'S PRESIDENT REPLIED IN A TERSE LETTER YOU ARE NOT ENTITLED TO A REVIEW OF THE DECISION EITHER BY A HEARING OR OTHERWISE PHYSICIANS INCREASINGLY ARE TURNING TO THE COURTS HOPING TO WIN REINSTATEMENT OR AT THE VERY LEAST THE RIGHT TO APPEAL THE DOCTORS IN THE AETNA CASE IN HOUSTON ARE HOPING THEY CAN BREAK NEW LEGAL GROUND THEIR LAWSUIT FILED BY FIVE PHYSICIANS AND THEIR STATE AND LOCAL MEDICAL SOCIETIES CONTENDS THAT IN ORDER TO PROTECT THE DOCTORPATIENT RELATIONSHIP INSURERS SHOULD BE BARRED FROM DROPPING PHYSICIANS FROM NETWORKS AT WILL THE DOCTORS ALSO ASSERT THAT EVEN THOUGH THEIR CONTRACTS GIVE BOTH SIDES THE RIGHT TO END AN AFFILIATION WITHOUT CAUSE VARIOUS TEXAS LAWS GUARANTEE THEM EXTENSIVE DUE PROCESS RIGHTS INSURERS ACCUSE PHYSICIANS OF CLOAKING A BATTLE FOR THEIR OWN LIVELIHOODS IN THE RHETORIC OF PATIENTS' RIGHTS BUT EVEN IF THE DOCTORS' ARGUMENT IS A DISGUISE SOME COURTS ARE BUYING IT EARLIER THIS YEAR FOR INSTANCE A FLORIDA APPEALS COURT THREW OUT A CONTRACT REQUIRING DOCTORS TO PAY THEIR HMO 700 FOR EACH PATIENT THEY TOOK WITH THEM IF THEY LEFT AND WENT TO ANOTHER HMO WE BELIEVE THAT THE PUBLIC POLICY OF THIS STATE IS VIOLATED THE COURT SAID WHEN THE BUSINESS RELATIONSHIP AN HMO HAS WITH ITS AFFILIATED DOCTORS INTERFERES WITH SOMETHING AS FUNDAMENTAL AS THE DOCTOR/PATIENT RELATIONSHIP ALTHOUGH THE FLORIDA CASE DIDN'T INVOLVE A DOCTOR WHO HAD BEEN DROPPED FROM A NETWORK LAWYERS SAY OTHER COURTS MAY ADOPT THE REASONING OF PROTECTING THE DOCTOR/PATIENT RELATIONSHIPS IN CASES OF DESELECTION NONETHELESS ANY BROADLY IMPOSED COURT PROTECTIONS ARE A LONG WAY OFF MEANTIME LAWS IN A HANDFUL OF STATES REQUIRING HEALTH PLANS TO ACCEPT ANY DOCTOR WHO WILL MEET THEIR STANDARDS AND FEES APPEAR TO BE IN JEOPARDY AS WEAPONS IN THE BATTLES WITH HEALTH PLANS THE AMA HAS LOBBIED HARD IN STATES ACROSS THE US FOR THESE ANY WILLING PROVIDER LAWS BUT NOW EVEN THE AMA WITH A WANING CONSENSUS AMONG ITS MEMBERS IS BACKING OFF GIVING SUCH LAWS ONLY TEPID SUPPORT AT A MEETING IN NEW ORLEANS EARLY THIS MONTH AND THE CLINTON HEALTHREFORM PLAN AND OTHER CONGRESSIONAL PROPOSALS WOULD TRUMP SUCH LAWS ENABLING HEALTH PLANS TO EXCLUDE DOCTORS FREELY NOW THE AMA IS PUSHING HARD FOR COLLECTIVE BARGAINING RIGHTS FOR DOCTORS BUT SOME DOCTORS ARE LOSING THE STOMACH FOR SUCH BATTLES SACRAMENTO PSYCHIATRIST IRA BRENT HAS WORRIED FOR YEARS THAT AN INSURER MIGHT DELIVER A FATAL BLOW TO HIS PRACTICE THEN IN JULY SACRAMENTO PHYSICIAN NETWORK TERMINATED HIS CONTRACT LOPPING OFF HIS ONLY BIG SOURCE OF REFERRALS NOW DOWN TO 15 PSYCHIATRY PATIENTS A WEEK HE IS CONSIDERING APPLYING FOR A FULLTIME CONSULTING JOB WITH THE STATE I'M NOT TOO FAR FROM CLOSING DOWN THE OFFICE HE SAYS SEE RELATED LETTERS LETTERS TO THE EDITOR AT THE MERCY OF HMO MANAGERS WSJ JAN 21 1994 9312300049 YY94 MM01 9401200181 931229 MUTUAL BANKS TAKE YOUR MONEY AND RUN BY JONATHAN R MACEY AMERICANS OFTEN REACT WITH SMUG PITY TO STORIES OF RUSSIA'S CONTINUED PROBLEMS TRANSFERRING PROPERTY RIGHTS TO THE PRIVATE SECTOR YET MANY OF THESE AMERICANS MAY THEMSELVES BE VICTIMS OF POORLY DEFINED PROPERTY RIGHTS AND A FAILURE TO ADHERE TO BASIC PRINCIPLES OF THE RULE OF LAW AS DEPOSITORS IN GREEN POINT SAVINGS BANK ONE OF THE THOUSANDS OF MUTUALLY OWNED BANKS AND SAVINGS ASSOCIATIONS IN THE US HAVE LEARNED IN RECENT MONTHS IN THEORY MUTUALS ARE OWNED BY THEIR DEPOSITORS BUT THE PROPERTY RIGHTS ASSOCIATED WITH THIS OWNERSHIP ARE NOTORIOUSLY ILLDEFINED DOING BUSINESS IN MUTUAL FORM REPRESENTS ALL COSTS AND NO BENEFITS SEVERAL DECADES AGO DEPOSITORS IN MUTUAL INSTITUTIONS BARGAINED AWAY THEIR RIGHTS TO SHARE IN THE CORPORATE PROFITS IN EXCHANGE FOR CERTAIN OTHER BENEFITS THAT NO LONGER EXIST WHILE IN THE PAST THEY OFTEN COULD RECEIVE LOANS ON FAVORED TERMS VIGOROUS COMPETITION IN THE FINANCIAL SERVICES INDUSTRY HAS ELIMINATED THIS ADVANTAGE AND FEDERALLY SPONSORED DEPOSIT INSURANCE HAS MADE DEPOSITORS INDIFFERENT TO THE RISKINESS OF THEIR FINANCIAL INSTITUTIONS ELIMINATING THE BENEFITS OF DEPOSITING IN AN INSTITUTION WITH NO OUTSIDE OWNER YET MUTUALS LIVE ON TO ALL INTENTS AND PURPOSES OWNED BY NO ONE THEY ARE MANAGED BY SELFPERPETUATING BOARDS OF TRUSTEES WHO NOMINATE AND ELECT THEMSELVES DEPOSIT INSURANCE COMBINED WITH THE LACK OF OUTSIDE EQUITY INVESTORS INSULATES THEM FROM COMPETITION NOT ONLY IN THE CAPITAL MARKETS BUT IN THE MARKET FOR CORPORATE CONTROL AND NOT SURPRISINGLY THE MANAGERS LIKE THEIR RUSSIAN COUSINS WILL FIGHT VIGOROUSLY BEFORE GIVING UP THE SECURITY AND PRIVILEGES OF THEIR POSITIONS MUCH AS THE SOVIETERA BUREAUCRACY HAS BEEN QUICK TO TAKE ADVANTAGE OF THE NEW ERA MANAGEMENTS OF MUTUALS WITH THE COMPLICITY OF REGULATORS HAVE IN RECENT YEARS DISCOVERED AN EVEN BETTER WAY TO PROFIT FROM THEIR SINECURES BY CONVERTING THEIR INSTITUTIONS TO THE STOCK FORM OF OWNERSHIP AND GRANTING THEMSELVES GENEROUS STOCK AND OPTION AWARDS TRUSTEES AND MANAGERS CAN MAKE MILLIONS OF DOLLARS IN THE CONVERSION WHILE THE CONVERSION TO STOCK FORM IS BENEFICIAL BECAUSE IT WILL INFUSE NEW CAPITAL AND SUBJECT THESE INSTITUTIONS TO MARKET DISCIPLINE THE DECISION ABOUT WHETHER TO CONVERT IS LEFT SOLELY IN THE HANDS OF INCUMBENT MANAGEMENT IT IS NOT UNCOMMON FOR EMPLOYEES AND TRUSTEES TO OWN AS MUCH AS 30 OF THE STOCK AFTER THE OFFERING AND THE EXERCISE OF STOCK OPTIONS THE STOCK IS FREE AND BY PRICING THE OPTIONS VERY LOW WITH THE HELP OF COOPERATIVE REGULATORS AND APPRAISAL FIRMS MANAGEMENT CAN BUY STOCK OPTIONS AT THE OFFERING PRICE SECURE IN THE KNOWLEDGE THAT PERVASIVE UNDERPRICING WILL ENABLE THEM TO MAKE MILLIONS WHEN SHARE PRICES ADJUST TO TRUE MARKET VALUE BECAUSE THERE ARE NO EXISTING OWNERS TO PROTEST IF THE OFFERING PRICE IS TOO LOW EVERY CONVERSION PRESENTS A DANGER TO THE SAFETY OF THE BANKING SYSTEM IF THE BANK'S SHARES ARE SOLD TOO CHEAPLY THE BANK WILL BE UNDERCAPITALIZED AND UNSAFE IN RESPONSE BANKING REGULATIONS REQUIRE THAT NO THRIFT THAT CONVERTS BE SOLD FOR LESS THAN ITS APPRAISED VALUE AS DETERMINED BY AN INDEPENDENT VALUATION FIRM BUT HOW INDEPENDENT ARE THESE FIRMS NO FIRM WILL STAY IN BUSINESS WITHOUT HAPPY CUSTOMERS AND A FIRM THAT MAKES ITS APPRAISALS HIGH IS NOT LIKELY TO GET ANY REFERRAL BUSINESS THUS IN THE PAST TWO YEARS THE AVERAGE BANK HAS EXPERIENCED A 30 INCREASE IN SHARE PRICE ON THE DAY OF THE CONVERSION THIS ONEDAY RETURN TRANSLATES INTO A SIMPLE ANNUAL RETURN OF WELL OVER 1000 IT IS NOT UNCOMMON FOR SHARE PRICES TO RISE AS MUCH AS 55 WITHIN A WEEK OF AN OFFERING BUT DURING THE CONVERSION THERE IS A SLIGHT RISK THAT A HOSTILE BIDDER MIGHT APPEAR THIS IS BECAUSE AS A VESTIGE OF THE MYTH THAT THE DEPOSITORS OWN THE MUTUAL THE LAW REQUIRES THAT DEPOSITORS BE ALLOWED TO VOTE ON THE TRUSTEES' DECISION TO CONVERT IF THE BANK'S SHARES ARE PRICED REALLY LOW THE TEMPTATION FOR OTHER BANKS TO START A BIDDING WAR BECOMES IRRESISTIBLE THEN THE TRUSTEES OF THE MUTUAL MUST TURN TO COMPLIANT REGULATORS FOR PROTECTION FROM THE RAVAGES OF MARKET FORCES THIS IS EXACTLY WHAT IS HAPPENING IN THE ATTEMPT BY GREEN POINT SAVINGS BANK OF FLUSHING NY TO CONVERT FROM MUTUAL TO STOCK FORM THIS DEAL WAS VERY SWEET FOR INSIDERS THE OUTSIDE APPRAISAL WAS IN LINE WITH THE APPRAISALS IN OTHER CONVERSIONS IF THE STOCK PERFORMS ONLY ON AVERAGE WITH THAT OF OTHER DEALS OFFICERS AND TRUSTEES STAND TO MAKE ABOUT 200 MILLION IN THE FIRST DAY ALONE THE 16 EXECUTIVE OFFICERS AND TRUSTEES STAND TO GAIN ABOUT 21450000 FROM SHARE AWARDS AND AN ADDITIONAL 78 MILLION FROM OPTIONS ASSUMING THE SHARES RISE IN VALUE BY THE AVERAGE AMOUNT FOR DEALS OF THIS KIND COMPETITION IN THE FORM OF A HOSTILE BID FROM REPUBLIC NEW YORK CORP QUICKLY REARED ITS HEAD LIKE GREEN POINT REPUBLIC WOULD CONTRIBUTE ONLY THE APPRAISED VALUE OF THE STOCK AS CAPITAL AND THUS MIGHT GET CONTROL AT A BARGAIN PRICE BUT REPUBLIC ALSO APPEALED DIRECTLY TO GREEN POINT'S 250000 DEPOSITORS OFFERING TO MAKE A SPECIAL INTEREST PAYMENT TO THOSE DEPOSITORS WHO KEPT THEIR ACCOUNTS AT GREEN POINT FOR A YEAR AFTER REPUBLIC MADE ITS ACQUISITION IT BEGAN WITH AN OFFER OF 100 MILLION AND SWIFTLY RAISED IT TO 250 MILLION AT LONG LAST IT SEEMED THAT THE FREE MARKET HAD COME TO THE MUTUAL CONVERSION RACKET BUT NOT FOR LONG FIRST DERRICK CEPHAS THE NEW YORK STATE SUPERINTENDENT OF BANKING SENT A LETTER TO REPUBLIC SAYING THAT THIS SPECIAL INTEREST PAYMENT WOULD NOT BE LEGAL IF OFFERED TO INFLUENCE THE VOTES OF DEPOSITORS BUT IT IS HARD TO SEE HOW REPUBLIC'S PAYMENT TO DEPOSITORS DIFFERS FROM THE PREMIUM TYPICALLY OFFERED SHAREHOLDERS IN HOSTILE TAKEOVER CONTESTS MOREOVER THE PAYMENT WAS NOT MADE SOLELY TO INFLUENCE VOTES BUT ALSO WOULD SERVE TO RETAIN THE LOYALTY OF DEPOSITORS IN THE EVENT OF A CHANGE IN MANAGEMENT NEXT THE SUPERINTENDENT ISSUED A NEWS RELEASE STATING THAT REPUBLIC'S OFFER WAS ILLEGAL AND IMPROPER AND DEMANDING THAT IT BE WITHDRAWN NOT ONLY WAS THERE NO NOTICE OR HEARING GIVEN PRIOR TO THIS DETERMINATION OF ILLEGALITY BUT THE SUPERINTENDENT GAVE NO EXPLANATION AND CITED NO STATUTE OR REGULATION TO SUPPORT HIS CONCLUSION A REVIEW OF RELEVANT REGULATIONS REVEALS NOTHING THAT WOULD SUPPORT THIS DETERMINATION THE SUPERINTENDENT THEN LAUNCHED AN INVESTIGATION OF REPUBLIC OF COURSE ONE WOULD THINK THAT A FINDING OF ILLEGALITY WOULD COME AFTER AN OFFICIAL INQUIRY RATHER THAN BEFORE IN ADDITION THE SUPERINTENDENT PROPOSED A MAJOR REVISION OF THE REGULATIONS GOVERNING CONVERSIONS TO THE NEW YORK STATE BANKING BOARD THESE NEW REGULATIONS WOULD PREVENT OUTSIDE BIDDERS FROM APPEALING DIRECTLY TO DEPOSITORS FOR APPROVAL OF THEIR RIVAL BIDS BUT AGAIN THIS SEEMS INCONSISTENT WITH THE RULE OF LAW THE SUPERINTENDENT WOULD NOT BE ISSUING NEW REGULATIONS TO COVER CONDUCT THAT WAS ALREADY ILLEGAL SO THE PROMULGATION OF THESE NEW REGULATIONS SUGGESTS THAT REPUBLIC'S OFFER WAS NOT ILLEGAL WHEN MADE THE NEW RULES WOULD SERVE NO PURPOSE OTHER THAN TO PROTECT INCUMBENT MANAGEMENT FROM MARKET FORCES AND TO PREVENT MUTUAL DEPOSITORS FROM HAVING ACCESS TO INFORMATION THEY NEED TO VOTE INTELLIGENTLY ACCORDING TO THE NEW RULES OUTSIDE BIDDERS WOULD BE ABLE TO COMMUNICATE THEIR OFFERS DIRECTLY TO THE INCUMBENT BOARD BUT THE OFFERORS WOULD BE PREVENTED FROM APPEALING DIRECTLY TO DEPOSITORS THEMSELVES MARKET FORCES ARE BEING QUELLED FOR THE STATED PURPOSE OF PREVENTING PRESSURE FROM BEING EXERTED ON THRIFTS THEIR TRUSTEES OR DIRECTORS THAT WISH TO REMAIN IN MUTUAL FORM AND TO ESTABLISH ORDERLY PROCEDURES TO GOVERN CONVERSIONS FROM MUTUAL TO STOCK FORM TRUSTEES OF MUTUALS NATURALLY WANT THEIR INSTITUTIONS TO REMAIN INDEPENDENT FROM THE INFLUENCE OF OUTSIDE INVESTORS BUT IT IS HARD TO SEE WHO BENEFITS OTHER THAN THE TRUSTEES THEMSELVES AFTER REPUBLIC'S BID WAS DECLARED ILLEGAL IT WAS WITHDRAWN SO IT WAS HARDLY SURPRISING WHEN GREEN POINT SHAREHOLDERS EARLIER THIS MONTH VOTED TO APPROVE THE TRUSTEE'S PROPOSAL TO CONVERT TO STOCK FORM INTERESTINGLY THE VOTE WAS VERY CLOSE AND IN THE MIDST OF THE PROXY SOLICITATION GREEN POINT WAS FORCED TO SWEETEN THE POT BY OFFERING CASH PAYMENTS IN MUCH THE SAME WAY AS REPUBLIC HAD DONE BUT THE STATE BANKING DEPARTMENT PUT THE MATTER ON HOLD WHILE IT CONDUCTS AN INVESTIGATION TO DETERMINE WHETHER GREEN POINT'S DISCLOSURES WERE ADEQUATE THE APPRAISAL COMPLIED WITH NEW YORK LAW AND THE PROXY SOLICITATION WAS FAIR TO DEPOSITORS THE RESULT OF ALL THIS REGULATORY ACTION IS AN ABUNDANCE OF CONFUSION EXISTING AND PROPOSED RULES SHOULD VIGOROUSLY ENCOURAGE MUTUALS TO PRIVATIZE BY CONVERTING TO STOCK FORM IN THE US WHICH HAS THE WORLD'S MOST HIGHLY DEVELOPED CAPITAL MARKETS CONTROL OF MUTUAL BANKS SHOULD BE DETERMINED BY MARKET FORCES WITH CONTROL GOING TO THE HIGHEST BIDDER MR MACEY IS A PROFESSOR AT THE CORNELL LAW SCHOOL SEE RELATED LETTER LETTERS TO THE EDITOR IN DEFENSE OF MUTUAL BANKS WSJ JAN 20 1994 9312290077 YY94 MM01 9401200180 931216 MARKETING & MEDIA ADVERTISING CRITICS ARE CRYING FOUL AT SPOTS DENNIS HOPPER IS DOING FOR NIKE BY LAURA BIRD NIKE INC IS PUSHING THE LIMITS OF TASTE AND COHERENCE WITH A NEW ADVERTISING CAMPAIGN STARRING DENNIS HOPPER A CULTHERO OF AMERICAN CINEMA WHO IS PROVING TO BE A CONTROVERSIAL CHOICE AS PITCHMAN THE CAMPAIGN FOR AIR VEER CROSSTRAINING SHOES HAS TOUCHED A NERVE WITH ADVOCATES FOR THE MENTALLY ILL WHO SAY SUCH ADS TRIVIALIZE MENTAL DISORDERS BY USING STEREOTYPES THE CAMPAIGN ALSO HAS REIGNITED A DEBATE ON MADISON AVENUE ABOUT THE PURPOSE OF ADVERTISING IS IT TO ENTERTAIN OR TO SELL AND CAN IT DO BOTH IN THE NEW CAMPAIGN MR HOPPER PORTRAYS THE ULTIMATE FOOTBALL FANATIC AN EXREFEREE SO OBSESSED WITH THE GAME AND THE ATHLETES THAT HE HAS TURNED INTO WELL DENNIS HOPPER THE ACTOR IS KNOWN FOR PLAYING VIOLENT AND ECCENTRIC CHARACTERS INCLUDING THE SCARY FRANK BOOTH IN THE GRIM QUIRKY MOVIE BLUE VELVET WHICH NIKE MENTIONS IN ITS NEWS RELEASE IN THE COMMERCIALS HE RANTS ABOUT THE ATHLETES IN FRENETIC PERFORMANCES CREATED BY NIKE AGENCY WIEDEN & KENNEDY OF PORTLAND ORE THE SPOTS INCLUDE REALLIFE FOOTAGE OF TROY AIKMAN BARRY SANDERS AND BRUCE SMITH BUT THE REAL STAR IS MR HOPPER WHOSE OVERTHETOP PERFORMANCE INCLUDES TWITCHES TICS AND MANIC LAUGHTER THAT TO SOME VIEWERS CLEARLY ADD UP TO A MENTALLY ILL MAN IN ONE SIDEWALK SCENE MR HOPPER FACES THE CAMERA AND RHAPSODIZES ABOUT BARRY SANDERS'S MOVES ON THE FIELD HE DOES THINGS ON THE FIELD THAT MAKE YOUR EYES GO ALL CRAZY MR HOPPER SAYS EXCITEDLY SOMETIMES I STILL SEE HIM WHEN I SLEEP HE CONFIDES ADDING AND I DON'T SLEEP THAT MUCH IN ANOTHER SPOT MR HOPPER SNEAKS INTO THE BUFFALO BILLS' LOCKER ROOM AND REMOVES BRUCE SMITH'S NIKE SHOE FROM HIS LOCKER HE EVEN TAKES A DEEP WHIFF YOU KNOW WHAT BRUCE WOULD DO IF HE FOUND ME MESSING WITH THIS SHOE HE ASKS A LOOK OF FEAR ON HIS FACE BAD THINGS MAN BAD THINGS WHAT IS THE POINT IN FEEDING UPON THE CONSTANT NOTION THAT PEOPLE WHO HAVE A MENTAL ILLNESS ARE AS THIS AD SEEMS TO IMPLY PARANOID OR OUT OF CONTROL ASKS SHADRACH STANLEIGH SPOKESMAN FOR THE NATIONAL STIGMA CLEARINGHOUSE A WATCHDOG GROUP THAT MONITORS ADVERTISING AND MEDIA FOR STEREOTYPES OF MENTAL ILLNESS THE IMPLICATION IS THEY ARE THE OUTCASTS OF SOCIETY WHO CAN'T BE TRUSTED TO DO ANYTHING THE GROUP SAYS IT PLANS TO MAKE ITS OBJECTIONS TO NIKE AND ITS AGENCY IT HAS DONE SO TWICE BEFORE IN 1991 THE NATIONAL STIGMA CLEARINGHOUSE PROTESTED A NIKE PRINT AD THAT SAID YOUR MOTHER AND FATHER TOLD YOU REPEATEDLY CRAZY PEOPLE TALK TO THEMSELVES AND FINALLY YOU REALIZED ONLY A MADMAN DOESN'T LISTEN THE GROUP ALSO OBJECTED TO A BILLBOARD THAT LABELED ONE OF ITS SHOES MULTIPLE PERSONALITIES AND LAST YEAR NIKE DREW FIRE FROM STUTTERERS WHO WERE ENRAGED BECAUSE THE COMPANY'S SUPER BOWL COMMERCIAL FEATURED PORKY PIG AND HIS TRADEMARK STAMMER THE CLEARINGHOUSE SAYS NIKE CUT SHORT THE LIFE OF THE ADS THE LAST TIME IT PROTESTED BUT NIKE INSISTS IT DIDN'T CAVE INTO PROTESTS AND IN THE CASE OF THE DENNIS HOPPER ADS THE COMPANY SAYS THAT AS OF YESTERDAY IT HADN'T RECEIVED A SINGLE COMPLAINT BUT FOR ITS PART THE NATIONAL FOOTBALL LEAGUE IS IN DEEP DENIAL ABOUT THE ODD PORTRAYAL OF ONE OF ITS OFFICIALS AN NFL SPOKESMAN SAYS AS FAR AS WE ARE CONCERNED IT IS A FAN DRESSED AS AN OFFICIAL CELEBRATING OUR GREAT PLAYERS THE ORIGINAL IDEA FOR THE COMMERCIAL WAS TO HAVE AN EXREFEREE EXPLAIN HOW INTENSE FOOTBALL IS SAYS STACY WALL THE WIEDEN & KENNEDY COPYWRITER WHO WROTE THE SPOTS HE AND HIS PARTNER DECIDED TO GIVE HIM A PERSONALITY LIKE DENNIS HOPPER'S AND THEN APPROACHED THE ACTOR ABOUT PLAYING HIM AGENCY FOUNDER DAN WIEDEN DEFENDS THE CAMPAIGN THE JOB OF COMMERCIALS IS TO WAKE PEOPLE UP AND MAKE THEM THINK DIFFERENTLY AND ENTERTAIN THEM IN THE PROCESS HE SAYS THE ROLE ISN'T TO BE POLITICALLY CORRECT IT'S TO BE PROVOCATIVE SOME EXPERTS QUESTIONED HOW MR HOPPER COULD BE A SUCCESSFUL PITCHMAN HIS Q SCORE WAS A 10 IN 1987 THE LAST YEAR IT WAS MEASURED ABOUT HALF THE AVERAGE SCORE IN THAT YEAR SAYS STEVEN LEVITT PRESIDENT OF MARKETING EVALUATIONS/TVQ INC IN PORT WASHINGTON NY THE FIRM'S Q SCORES RANK CELEBRITIES ACCORDING TO NAME RECOGNITION AND LIKABILITY IN 1987 ONLY 4 CALLED MR HOPPER ONE OF MY FAVORITES I DON'T THINK MOST PEOPLE EVEN HAVE THE FOGGIEST NOTION OF WHO HE IS MR LEVITT SAYS WHATEVER NIKE SPENT TO GET A CELEBRITY THEY COULD HAVE GOTTEN SOMEONE'S BROTHERINLAW AND GOT THE SAME EFFECT HE SAYS MR HOPPER HE SAYS IS OVERPOWERED BY THE SNEAKER BUT MR WIEDEN SAYS NIKE'S ADS DON'T TRY TO APPEAL TO CONSUMERS FOR CONVENTIONAL REASONS THE RESPONSIBILITY OF THE ADVERTISER IS TO DEVELOP A RELATIONSHIP WITH THE AUDIENCE AND A COMPLEX ONE HE SAYS MR HOPPER'S PERFORMANCE IS SOMETIMES FUNNY AND SOMETIMES COMPLEX I DON'T KNOW WHY ADVERTISING HAS TO BE RESTRICTED TO JINGLES AND SUPERFICIALITY SOME OBSERVERS LIKE THE ADS BUT DISAPPROVE OF THEM ANYWAY ADVERTISING AGE COLUMNIST BOB GARFIELD WHO SAYS THE SPOTS MAKE HIM LAUGH ALSO BELIEVES MR HOPPER'S PERFORMANCE ISN'T AN APPROPRIATE CHARACTERIZATION FOR A NATIONAL TV COMMERCIAL IT ISN'T A QUESTION OF POLITICAL CORRECTNESS MR GARFIELD SAYS ADVERTISERS HAVE A SPECIAL OBLIGATION TO OBSERVE THE GOLDEN RULE NO ONE ASKS TO SEE A TV COMMERCIAL IT JUST COMES BARGING IN ADVERTISING HAS TO TAKE SPECIAL CARE NOT TO BE OFFENSIVE OR EXPLOITATIVE BECAUSE IT IS COMPLETELY UNSOLICITED YOUNG & RUBICAM NAMED PRESIDENT PETER GEORGESCU TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER SUCCEEDING ALEX KROLL WHO WILL CONTINUE AS CHAIRMAN IN A RESTRUCTURING OF ITS ADVERTISING OPERATIONS YOUNG & RUBICAM NAMED MADISON AVENUE VETERAN ED VICK CHIEF EXECUTIVE OF ITS FLAGSHIP NEW YORK OFFICE MR VICK AGE 49 WAS PREVIOUSLY PRESIDENT OF LANDOR & ASSOCIATES IN SAN FRANCISCO Y&R'S CORPORATE DESIGN UNIT MR VICK HAD PREVIOUSLY HEADED THE NOWDEFUNCT LEVINE HUNTLEY VICK & BEAVER UNIT OF GREY ADVERTISING MR VICK SUCCEEDS FRANK ANFIELD WHO HAD BEEN PRESIDENT OF Y&R'S NEW YORK OFFICE MR ANFIELD 54 WAS NAMED PRESIDENT SPECIAL COMMUNICATIONS GROUP A NEW POSITION OVERSEEING LANDOR AND OTHER Y&R UNITS INCLUDING SUDLER & HENNESSEY HEALTHINDUSTRY ADVERTISING THE CHAPMAN DIRECTMARKETING UNIT AND BRAVO Y&R'S HISPANIC MARKETING UNIT JOHN MCGARRY 54 PRESIDENT AND CHIEF EXECUTIVE OF Y&R'S NORTH AMERICAN OPERATIONS WAS NAMED CHIEF EXECUTIVE OF Y&R'S WORLDWIDE ADVERTISING OPERATIONS A NEW POSITION STEVE HEYER A 41YEAROLD EXECUTIVE VICE PRESIDENT AT Y&R WAS NAMED CHIEF OPERATING OFFICER OF Y&R'S WORLDWIDE ADVERTISING OPERATIONS SUCCEEDING MR VICK AS PRESIDENT OF THE LANDOR UNIT IS CLAY TIMON 50 FORMERLY A REGIONAL VICE PRESIDENT AT SAATCHI & SAATCHI ADVERTISING OVERSEEING THE PROCTER & GAMBLE BUSINESS IN EUROPE BURGER KING'S REVIEW OF ITS 100 MILLIONPLUS NATIONAL ADVERTISING ACCOUNT TOOK A SHARP TURN YESTERDAY WHEN THE EXECUTIVE OVERSEEING THE PROCESS SIDNEY J FELTENSTEIN JR EXECUTIVE VICE PRESIDENT OF WORLDWIDE MARKETING LEFT THE COMPANY SUCCEEDING HIM IS PAUL CLAYTON VICE PRESIDENT OF US MARKETING FOR BURGER KING MR CLAYTON TAKES OVER THE AGENCY REVIEW WHICH INCLUDES THE INCUMBENT D'ARCY MASIUS BENTON & BOWLES SAATCHI & SAATCHI CO'S SAATCHI & SAATCHI ADVERTISING WHICH CREATES BURGER KING'S CHILDREN'S ADS WPP GROUP'S OGILVY & MATHER INTERPUBLIC GROUP'S LOWE & PARTNERS AMMIRATI & PURIS EURO RSCG'S MESSNER VETERE BERGER MCNAMEE SCHMETTERER AND HILL HOLLIDAY CONNORS COSMOPULOS A DECISION IS EXPECTED AT THE END OF JANUARY A COMPANY SPOKESWOMAN SAID THAT MR FELTENSTEIN AND BURGER KING CHIEF EXECUTIVE OFFICER JAMES B ADAMSON MUTUALLY AGREED THAT HE WOULD LEAVE THE COMPANY MR FELTENSTEIN COULDN'T BE REACHED AGENCY SEARCH SPRINT CORP SAID IT STARTED A SEARCH FOR AN AGENCY TO CREATE LONGDISTANCE ADS FROM THE COMPANY'S NEW BUSINESSSERVICES GROUP SPRINT SAID IT PLANS TO STEP UP BUSINESSTOBUSINESS ADVERTISING AND DIRECTMARKETING BILLINGS COULDN'T BE DETERMINED SPRINT SPENT 80 MILLION ON ADS LAST YEAR ACCORDING TO COMPETITIVE MEDIA REPORTS NEW YORK CONSULTANT MORGAN ANDERSON IS CONDUCTING THE SEARCH THE SAN FRANCISCO OFFICE OF WPP GROUP'S J WALTER THOMPSON REMAINS SPRINT'S MAIN AGENCY SEE RELATED LETTERS LETTERS TO THE EDITOR SNEAKERWHIFFING ADS NOT FUNNY TO EVERYONE WSJ JAN 20 1994 9312160130 YY94 MM01 9401190164 931214 MS PRESIDENT OTHER NATIONS ELECT WOMEN TO LEAD THEM SO WHY DOESN'T US PARLIAMENTARY GOVERNMENTS DYNASTIES EXPLAIN PART NOT ALL OF THE DIFFERENCE THE IRON LADIES IN WAITING BY JOHN HARWOOD AND GERALDINE BROOKS STAFF REPORTERS OF THE WALL STREET JOURNAL UNITED NATIONS WHEN PRESIDENT CLINTON ADDRESSED THE GENERAL ASSEMBLY THIS FALL SO TOO DID A PARADE OF PROMINENT WOMEN LEADERS VIOLETA CHAMORRO PRESIDENT OF NICARAGUA AND NORWAY'S PRIME MINISTER GRO HARLEM BRUNDTLAND WERE THERE AS WAS BEGUM KHALEDA ZIA THE PRIME MINISTER OF BANGLADESH WHO BECAME THE FIRST MUSLIM WOMAN HEAD OF STATE TO ADDRESS THE GENERAL ASSEMBLY SUDDENLY NATIONS ALL OVER THE WORLD ARE CHOOSING WOMAN LEADERS YET THE PROSPECT OF A WOMAN BEING ELECTED PRESIDENT OF THE US STILLS SEEMS REMOTE GERALDINE FERRARO CAME THE CLOSEST IN HER 1984 RUN FOR VICE PRESIDENT BUT AFTER A QUARTER CENTURY OF MODERN FEMINISM WHICH PROPELLED WOMEN INTO PUBLIC LIFE IN INCREASING NUMBERS THE MOST POWERFUL WOMAN IN AMERICAN NATIONAL POLITICS IS ARGUABLY MR CLINTON'S UNELECTED WIFE HILLARY AND ONLY AFTER A CAMPAIGN BY HER HUSBAND THAT DELIBERATELY SOFTPEDALED HER INFLUENCE AND INTERESTS THE US MIGHT HAVE BEEN EXPECTED TO BREAK THE BARRIER BEFORE CONSERVATIVE AND CATHOLIC IRELAND WHICH ELECTED MARY ROBINSON PRESIDENT IN 1990 DESPITE HER SUPPORT OF ABORTION RIGHTS AND OUTSPOKEN FEMINISM EVEN THREE MUSLIM COUNTRIES TURKEY PAKISTAN AND BANGLADESH HAVE OVERCOME STRONG RELIGIOUS RESERVATIONS TO FEMALE LEADERSHIP INDEED THE LIST OF NATIONS THAT HAVE OR HAVE HAD A WOMAN PRIME MINISTER OR PRESIDENT NOW INCLUDES WESTERN NATIONS BRITAIN FRANCE CANADA IRELAND PORTUGAL ICELAND ASIAN NATIONS THE PHILIPPINES LATIN AMERICAN NATIONS ARGENTINA BOLIVIA NICARAGUA EASTERN EUROPEAN NATIONS POLAND MIDEAST NATIONS ISRAEL TURKEY ALMOST THE ENTIRE SUBCONTINENT REGION INDIA PAKISTAN BANGLADESH SRI LANKA AND WEST INDIAN NATIONS HAITI DUTCH ANTILLES DOMINICA IN THE US WOMEN HAVE MADE SUBSTANTIAL POLITICAL GAINS OVER THE PAST TWO DECADES THE NUMBER OF WOMEN MAYORS HAS RISEN MORE THAN TENFOLD TO 175 OUT OF 973 MAYORS OF CITIES OVER 30000 POPULATION AND WOMEN HAVE QUADRUPLED THEIR RANKS AMONG STATE LEGISLATORS TO 1517 OUT OF 7424 SINCE THE 1992 ELECTION KICKED OFF THE YEAR OF THE WOMAN THE NUMBER OF WOMEN ON CAPITOL HILL HAS NEARLY DOUBLED TO 54 47 IN THE HOUSE SEVEN IN THE SENATE COMPARED WITH 28 AND TWO IN THE PREVIOUS CONGRESS WIDELY DIVERGENT ELECTORATES HAVE SENT REPUBLICANS KAY BAILEY HUTCHISON TO THE SENATE FROM TEXAS AND CHRISTINE TODD WHITMAN TO THE NEW JERSEY STATEHOUSE ALL ELSE BEING EQUAL SAYS DEMOCRATIC POLLSTER CELINDA LAKE THEIR GENDER NOW GIVES A WOMAN A 10 BOOST IN RACES FOR LEGISLATIVE SEATS PARTLY BECAUSE THEY ARE LESS TAINTED BY THE NEGATIVE FEELINGS VOTERS HAVE ABOUT INCUMBENTS BUT THE ADVANTAGE FALLS OFF SHARPLY NIL TO 3 IN RACES FOR MORE POWERFUL JOBS SUCH AS MAYOR OR GOVERNOR THERE'S GREATER RESISTANCE TO WOMEN THE HIGHER YOU GO SAYS IRENE NATIVIDAD A POLITICAL CONSULTANT AND FORMER HEAD OF THE NATIONAL WOMEN'S POLITICAL CAUCUS WHEN IT COMES TO THE PRESIDENCY A 1937 GALLUP SURVEY SHOWED THAT 65 OF THOSE POLLED SAID THEY WOULDN'T VOTE FOR A WOMAN FOR PRESIDENT EVEN IF SHE WERE QUALIFIED THE LAST TIME THE SURVEY WAS TAKEN IN 1987 THE PERCENTAGE HAD DROPPED TO 12 THOUGH A DIFFERENTLY WORDED ROPER QUESTION IN 1992 SHOWED A 32 REJECTION THE US LACKS SOME OF THE FACTORS THAT HAVE PUSHED WOMEN TO POWER ELSEWHERE IN THE WORLD ANCIENT TRADITIONS OF DYNASTIC RULE FEUDALISM OR MONARCHY CAN BOOST THE CHANCES OF WOMEN FROM PROMINENT FAMILIES EVEN IN MODERN ELECTORAL POLITICS SOME LIKE PAKISTAN'S BENAZIR BHUTTO WHO WAS VOTED BACK TO POWER LAST OCTOBER OR BANGLADESH'S MRS ZIA INITIALLY CAME TO PROMINENCE AFTER THE KILLING OF A FAMOUS FATHER OR HUSBAND MRS ZIA WHO HAD AN ARRANGED MARRIAGE STAYED AT HOME RAISING HER TWO SONS AS HER ARMYOFFICER HUSBAND ROSE TO THE PRESIDENCY IN 1975 ON HIS ASSASSINATION SIX YEARS LATER SHE GRADUALLY BECAME THE SPOKESWOMAN FOR OPPONENTS OF THE MILITARY GOVERNMENT OF HUSSAIN ERSHAD LEADING A NINEYEAR STRUGGLE FOR THE FREE ELECTIONS THAT TOOK PLACE IN 1991 AND BROUGHT AN END TO YEARS OF MILITARY DOMINANCE SURPRISINGLY IN A DEVOUT 85 MUSLIM COUNTRY GENDER WAS NEVER A BIG ISSUE MRS ZIA'S MAIN RIVAL IN THE PRESIDENTIAL CAMPAIGN ALSO WAS A WOMAN WE MUSLIMS ARE NOT AS CONSERVATIVE AND FANATICAL AS SOME IN THE WEST WOULD LIKE TO THINK SAYS MRS ZIA MY BEING A WOMAN NOT ONLY DIDN'T HURT I THINK IT ACTUALLY HELPED ME WIN SUPPORT SHE BELIEVES BANGLADESHIS SAW HER SELFEFFACING STYLE AS A WELCOME AND COMPLETE CONTRAST TO THE HATED MILITARY DICTATORS OF THE PAST THE RISE TO POWER OF TURKEY'S TANSU CILLER A USEDUCATED ECONOMICS PROFESSOR WHO INSISTED HER HUSBAND TAKE HER NAME ON MARRIAGE WAS EVEN MORE RAPID MS CILLER CAME TO POLITICS FROM ACADEMIA ONLY THREE YEARS BEFORE WINNING HER PARTY'S LEADERSHIP LAST JUNE SINCE THEN SHE HAS PLAYED UP HER WOMANLINESS TELLING THE ELECTORATE I EMBRACE YOU WITH A MOTHER'S LOVE MS CILLER WON THE RULING TRUE PATH PARTY'S LEADERSHIP PARTLY BECAUSE HER ECONOMICS BACKGROUND MADE HER A GOOD PROSPECT TO TACKLE TURKEY'S SOARING INFLATION AND PUSH THROUGH THE NATION'S FLAGGING PRIVATIZATION PROGRAM THE PARTY'S FORMER LEADER SULEYMAN DEMIREL HAD ALSO ENCOURAGED HER POLITICAL RISE BECAUSE HE RECOGNIZED HIS PARTY'S WEAKNESS WITH WOMEN VOTERS AND BECAUSE MS CILLER OFFERED A FRESH FACE AND A WAY FOR THE PARTY TO REINVENT ITSELF HER REINVENTION HAS GONE FURTHER THAN PERHAPS MR DEMIREL INTENDED ON BECOMING PRIME MINISTER SHE IMMEDIATELY SACKED ALL BUT THREE OF HIS FORMER MINISTERS BY HAPPENSTANCE MS CILLER BECAME PRIME MINISTER WITHIN HOURS OF KIM CAMPBELL'S SELECTION FOR SIMILAR REASONS IN CANADA ONE TURKISH NEWSPAPER HIGHLIGHTED THE COINCIDENCE WITH THE SEXIST HEADLINE OURS IS PRETTIER AS IN TURKEY MS CAMPBELL'S PARTY REACHED OUT FOR A LEADER WHO WOULD OFFER A DRAMATIC CONTRAST TO BRIAN MULRONEY WHOSE LONG TENURE HAD LEFT VOTERS BORED AND RESTLESS NOW MS CILLER'S POLITICAL ENEMIES ALREADY ARE CROWING THAT MS CAMPBELL'S IGNOMINIOUS TROUNCING AT THE POLLS LAST OCTOBER WILL BE ECHOED WHEN TURKEY CALLS A GENERAL ELECTION IN 1996 AT A CONVENTION LAST AUGUST FOR FORMER PRIME MINISTER MESYUT YILMAZ SOME DELEGATES CHANTED MESYUT KOLTUGA TANSU MUTFAGA MESYUT BACK TO POWER AND TANSU BACK TO THE KITCHEN GROWING HOSTILITY TOWARD INCUMBENTS AND A DESIRE FOR FRESH FACES HAVE BEEN BENEFITING WOMEN IN THE US AS WELL IT USED TO BE THAT NOT BEING A MEMBER OF THE CLUB HURT WOMEN NOW IT HELPS WOMEN SAYS SUSAN ESTRICH 1988 CAMPAIGN MANAGER FOR MICHAEL DUKAKIS EVEN THE MOSTLY MALE WORLD OF POLITICAL FUNDRAISERS AND STRATEGISTS IS SCRAMBLING TO ADAPT TO THE EXPANDING INTEREST IN WOMEN'S CANDIDATES AFTER EMILY'S LIST SUCCESSFULLY PIONEERED FUND RAISING FOR PROMINENT DEMOCRATIC WOMEN MOREESTABLISHED FUNDRAISERS BECAME LESS NEGLECTFUL OF WOMEN ANOTHER BARRIER TO AN EVENTUAL PRESIDENTIAL CANDIDACY MAY ALSO NOW BE WEAKENING THE BELIEF THAT WOMEN LACK THE TOUGHNESS AND MILITARY KNOWHOW NECESSARY TO BE COMMANDERINCHIEF FOR US PRESIDENTS WHO SERVED DURING THE COLD WAR MILITARY EXPERIENCE WAS A NECESSITY PRESIDENT CLINTON HOWEVER COMING TO POWER AFTER THE SOVIET UNION'S COLLAPSE GOT ELECTED WITHOUT HAVING SERVED IN THE ARMED FORCES AND AS TIME GOES ON THE CHANCES OF CONTENDERS OF EITHER GENDER HAVING MILITARY EXPERIENCE BECOMES REMOTE IN ANY CASE BRITAIN'S MARGARET THATCHER THE FALKLANDS ISRAEL'S GOLDA MEIR THE 1973 YOM KIPPUR WAR AND INDIA'S INDIRA GANDHI THE DECISIVE 1971 VICTORY OVER PAKISTAN HAVE ALL DEMONSTRATED THAT WOMEN CAN LEAD THEIR COUNTRIES TO WAR AND WIN MR CLINTON MADE UP FOR HIS LACK OF MILITARY BACKGROUND BY HOMING IN ON THE NATION'S DESIRE TO FOCUS ON INTERNAL CONCERNS SUCH A PLATFORM CAN HELP WOMEN TOO AS POLLS SUGGEST US VOTERS TEND TO REGARD WOMEN AS MORE TRUSTWORTHY AND ATTUNED TO THEIR EVERYDAY CONCERNS THAT IS THE DOMESTIC SIDE NORWAY FOR EXAMPLE WHICH HAS FEW FOREIGNPOLICY CRISES BEYOND THE PERENNIAL COD WARS OVER FISHING RIGHTS HAS DEVELOPED THE WORLD'S MOST STRIKINGLY FEMINIZED POLITICAL CULTURE ALTHOUGH ITS LEADER DR BRUNDTLAND OF THE LABOR PARTY PREFERS TO CALL IT NORMALIZED IN THE LATEST NATIONAL ELECTION LAST SEPTEMBER THREE MAJOR PARTIES WERE LED BY WOMEN INCLUDING THE TRADITIONALIST AGRARIAN CENTER PARTY NORWAY STARTED TO BECOME NORMALIZED IN 1971 THEN AGGRIEVED THAT THEIR INCREASING PROMINENCE IN THE WORK FORCE WASN'T MATCHED IN POLITICS IN 1968 WOMEN MADE UP LESS THAN 10 OF NORWAY'S PARLIAMENT WOMEN RAN IN LOCAL ELECTIONS AND WERE ELECTED IN LARGE NUMBERS SENSING A CHANCE TO CAPTURE THESE VOTES AT A NATIONAL LEVEL THE LABOR GROUP AND A SMALLER LEFTWING PARTY MADE WOMEN'S PARTICIPATION A KEY PLANK OF THEIR PLATFORMS LABOR GAVE 40 OF CANDIDACIES TO WOMEN DR BRUNDTLAND SET A WORLD RECORD IN HER 1986 CABINET BY FILLING NINE OF 19 MINISTRIES WITH WOMEN IN THE CURRENT PARLIAMENT WOMEN HOLD 39 OF THE SEATS WOMEN'S EQUALITY IN POLITICS IS NOW A FACT OF LIFE DR BRUNDTLAND SAYS SOMETHING OBVIOUS WHILE NORWAY IS AT THE FOREFRONT OTHER EUROPEAN COUNTRIES DON'T LAG TOO FAR BEHIND FRANCE HAD THE OUTSPOKEN EDITH CRESSON AS PRIME MINISTER FROM 1991 TO 1992 AND NOW HAS SIMONE VEIL AS DEPUTY PRIME MINISTER THE GERMAN CABINET IS ONEFIFTH WOMEN PRESIDENT CLINTON HAS HELPED THE US CATCH UP AT LEAST AT CABINET LEVEL BY APPOINTING WOMEN TO SIX OF 22 POSITIONS SOME ANALYSTS ASCRIBE THE POLITICAL SUCCESS OF WOMEN ABROAD TO THEIR COUNTRIES' PARLIAMENTARY SYSTEMS WHERE LEADERS ARE CHOSEN BY THE PARTY AND NOT DIRECTLY BY THE VOTERS YET IF ANYTHING US WOMEN FARE WORSE WITHIN CONGRESSIONAL PARTY CHAMBERS THAN THEY DO AT THE POLLS LACKING SENIORITY AND LONGESTABLISHED OLDBOY NETWORKS EVEN THE LONGESTSERVING WOMAN COLORADO'S PATRICIA SCHROEDER A DEMOCRAT WITH 21 YEARS IN THE HOUSE STANDS BEHIND 34 MALE MEMBERS WITH LONGER TENURE NO WOMAN CHAIRS A STANDING COMMITTEE IN EITHER THE HOUSE OR SENATE THE MOST POWERFUL WOMAN IN CONGRESS IS PROBABLY SEN BARBARA MIKULSKI A DEMOCRAT FROM MARYLAND WHO SERVES AS ASSISTANT FLOOR LEADER CHAIRS AN APPROPRIATIONS SUBCOMMITTEE AND SITS ON THE ETHICS PANEL THERE'LL BE A WOMAN PRESIDENT BEFORE THERE'S A WOMAN SPEAKER PREDICTS LYNN MARTIN A FORMER CONGRESSWOMAN AND LABOR SECRETARY IN THE BUSH ADMINISTRATION WHO NOW LECTURES BUSINESS STUDENTS AT THE KELLOGG SCHOOL OF MANAGEMENT AT NORTHWESTERN UNIVERSITY ON THE GLASS CEILING IN AMERICAN CORPORATE LIFE CURRENTLY WOMEN HOLD JUST FOUR OF THE 50 GOVERNORSHIPS THE LAUNCHING PAD THAT HAS SENT THREE OF THE LAST FOUR PRESIDENTS TO THE WHITE HOUSE TO BOLSTER THEIR RANKS THE NATIONAL WOMEN'S POLITICAL CAUCUS HOPES TO MAKE 1994 THE YEAR OF THE WOMAN GOVERNOR AND SOME TWO DOZEN WOMEN IN 19 STATES ARE MULLING STATEHOUSE BIDS EVEN SO IN THE 1996 PRESIDENTIAL ELECTION THERE IS NO OPENING FOR A WOMAN ON THE DEMOCRATIC TICKET AMONG HIGHPROFILE REPUBLICAN WOMEN NEITHER ELIZABETH DOLE NOR LYNNE CHENEY HAS SOUGHT ELECTIVE OFFICE SEN NANCY KASSEBAUM SHOWS NO INTEREST IN A NATIONAL RACE SEN HUTCHISON QUICKLY TABBED AS A VICEPRESIDENTIAL PROSPECT AFTER HER LANDSLIDE VICTORY IN A SPECIAL ELECTION THIS SPRING HAS SINCE BEEN TARNISHED BY FELONY CHARGES ALLEGING OFFICIAL MISCONDUCT DURING HER SERVICE AS TEXAS STATE TREASURER ONLY LYNN MARTIN SEEMS TO BE SERIOUSLY WEIGHING AN ASSAULT ON THE STURDIEST CEILING OF THEM ALL AFTER DISCUSSIONS WITH GOP STRATEGISTS AND A PILGRIMAGE TO NEW HAMPSHIRE SHE BELIEVES THAT THE PUBLIC IS MUCH CLOSER TO EMBRACING A WOMAN PRESIDENTIAL CANDIDATE THAN POLITICAL INSIDERS THINK THE PEOPLE ARE SO FAR AHEAD OF THE PRESS AND THE POLITICIANS IT'LL TAKE YOUR BREATH AWAY SHE INSISTS IF NOTHING ELSE THE ACERBIC 53YEAROLD MS MARTIN WHO FIRST CAME TO NATIONAL ATTENTION BY PLAYACTING THE ROLE OF GERALDINE FERRARO IN PRACTICE DEBATES WITH GEORGE BUSH DURING THE 1984 VICEPRESIDENTIAL CAMPAIGN SEEMS WELLPOSITIONED TO DEFLECT VOTERS' FEARS THAT WOMEN POLITICIANS AREN'T TOUGH ENOUGH IN THE US MALE AND FEMALE CANDIDATES HAVE TO BE TOUGH JUST TO SURVIVE THE INCREASING NASTINESS OF CAMPAIGNS IN THIS POLITICAL ENVIRONMENT THE FIRST THING YOU TRY TO DO IS DESTROY A CANDIDATE'S PERSONAL INTEGRITY SAYS REPUBLICAN POLLSTER LINDA DIVALL IF YOU'RE NOT PREPARED TO DEAL WITH THAT YOU MIGHT AS WELL SIT IT OUT YOU HAVE TO WANT IT SAYS MS FERRARO THE SLEAZIER SIDE OF POLITICS IS TURNING A LOT OF PEOPLE AWAY MS FERRARO WAS GORED IN VICIOUS ATTACKS DURING BOTH HER 1984 RACE FOR US VICE PRESIDENT AND IN A 1992 DEMOCRATIC SENATE PRIMARY IN WHICH HER ASSAILANT WAS FELLOW TRAILBLAZER ELIZABETH HOLTZMAN BUT DESPITE HER FAILURES A NATIONAL WOMEN'S POLITICAL CAUCUS POLL TAKEN JUST AFTER THE 1984 VOTING SHOWED THAT A QUARTER OF THE ELECTORATE DESCRIBED ITSELF AS MORE LIKELY TO VOTE FOR A WOMAN AFTER SEEING MS FERRARO ON THE CAMPAIGN TRAIL WITH THE GROUNDWORK NOW LAID IT REMAINS FOR ONLY ONE POLITICAL METEOR TO ACHIEVE A HISTORIC BREAKTHROUGH TAKE FOR EXAMPLE CHARISMATIC CALIFORNIAN KATHLEEN BROWN DAUGHTER OF ONE FORMER GOVERNOR AND SISTER OF ANOTHER WHO BRINGS THE RARE CACHET OF AN AMERICAN POLITICAL DYNASTY TO HER ATTEMPT TO OUST THE INCUMBENT REPUBLICAN GOVERNOR PETE WILSON IF SHE WON IN THE NATION'S LARGEST STATE SHE WOULD IMMEDIATELY BECOME A DEMOCRATIC PROSPECT FOR THE YEAR 2000 ANOTHER DEMOCRAT FROM CALIFORNIA FORMER SAN FRANCISCO MAYOR AND FIRSTTERM SEN DIANNE FEINSTEIN ALSO HAS POTENTIAL NATIONAL APPEAL YET BECAUSE VOTERS IN RECENT YEARS HAVE TENDED TO VIEW REPUBLICANS AS STRONGER AND MORE FORCEFUL A WOMAN RUNNING UNDER THE GOP BANNER MAY HAVE A BETTER CHANCE OF OVERCOMING LINGERING STEREOTYPES THE IRONY MAY BE THAT SOME FEMINISTS WHO SEEK MOST URGENTLY TO CRACK THE LOCKS ON THE WHITE HOUSE MAY NOT LIKE THE FIRST WOMAN WHO GETS INSIDE THE FEMINIST WRITER GLORIA STEINEM FOR ONE WASN'T HAPPY WHEN MS HUTCHISON SWEPT TO VICTORY ON A HARDLINE ANTITAX PLATFORM DERIDING THE TEXAS REPUBLICAN AS A FEMALE IMPERSONATOR MS STEINEM ADDED HAVING SOMEONE WHO LOOKS LIKE US BUT THINKS LIKE THEM IS WORSE THAN HAVING NO ONE AT ALL SEE RELATED LETTERS LETTERS TO THE EDITOR NO WAY TO TREAT A LADY WSJ JAN 19 1994 9312140072 YY94 MM01 9401190183 930924 WORLD BUSINESS A SPECIAL REPORT THE WORLD'S 100 LARGEST PUBLIC COMPANIES NOTE RANK CALCULATED FOR ROYAL DUTCH/SHELL GROUP BY COMBINING MARKET VALUE OF NETHERLAND'S ROYAL DUTCH PETROLEUM AND BRITAIN'S SHELL TRANSPORT & TRADING RANK CALCULATED FOR UNILEVER BY COMBINING MARKET VALUE OF NETHERLAND'S UNILEVER NV AND BRITAIN'S UNILEVER PLC SALES AND PROFITS ARE FOR COMBINED COMPANIES 9401180125 931223 PRICING HEALTH CARE THE PRESIDENT'S COSTLY BUDGETBUSTER BY DANIEL J MITCHELL WHILE THE UNDERLYING PREMISES OF THE CLINTON HEALTH PLAN ARE DEEPLY FLAWED AND ALMOST EVERYTHING THE WHITE HOUSE CLAIMS REGARDING ITS PROPOSAL BORDERS ON THE RIDICULOUS PERHAPS THE MOST OUTLANDISH ASSERTION OF ALL IS THAT ADOPTION OF A MASSIVE NEW ENTITLEMENT PROGRAM WILL RESULT IN DEFICIT REDUCTION ACCORDING TO THE ADMINISTRATION'S NUMBERS ADOPTION OF THE CLINTON PACKAGE WILL RESULT IN 58 BILLION OF DEFICIT REDUCTION BETWEEN 1995 AND 2000 FEW IF ANY KNOWLEDGEABLE ANALYSTS TAKE THIS FIGURE SERIOUSLY AMONG THE BUDGET EXPERTS TO FIND FAULT WITH THE OFFICIAL CLINTON ESTIMATES ARE THE WHITE HOUSE'S OWN NUMBERCRUNCHERS AT THE OFFICE OF MANAGEMENT AND BUDGET SIX UNPUBLISHED RISK TABLES PREPARED IN AUGUST FOR THE PROGRAM ASSOCIATE DIRECTOR FOR HEALTH AT OMB USING REALWORLD ASSUMPTIONS ABOUT BEHAVIORAL AND POLICY UNCERTAINTIES INDICATE THAT THE HEALTH CARE PLAN COULD INCREASE BUDGET DEFICITS BY A TOTAL OF MORE THAN 800 BILLION OVER THE NEXT SIX FISCAL YEARS INCLUDING AN INCREASE OF NEARLY 200 BILLION IN THE YEAR 2000 ALONE ADDED TO A DEFICIT THAT THE CONGRESSIONAL BUDGET OFFICE ALREADY EXPECTS TO REACH 251 BILLION AT THE TURN OF THE CENTURY THE POTENTIAL FISCAL CONSEQUENCES ARE ALMOST TOO CATASTROPHIC TO CONTEMPLATE THE OMB NUMBERS SHOULD COME AS NO SURPRISE HISTORY CONCLUSIVELY DEMONSTRATES THAT ENTITLEMENT SPENDING PARTICULARLY FOR HEALTH CARE RELATED PROGRAMS INCREASES MUCH FASTER THAN ORIGINALLY PROJECTED WHEN MEDICARE WAS CREATED IN 1965 FOR INSTANCE ACTUARIES PROJECTED TOTAL COSTS WOULD REACH 9 BILLION TO 12 BILLION BY 1990 ACTUAL COSTS WERE 107 BILLION AN IMPRESSIVE MISTAKE EVEN BY GOVERNMENT STANDARDS MORE RECENTLY COST ESTIMATES FOR THE CATASTROPHIC CARE PROGRAM ENACTED IN 1987 AND QUICKLY REPEALED IN 1989 EXPLODED DURING ITS SHORT HISTORY THERE IS A SIMPLE REASON EXPENDITURES ROSE MUCH FASTER THAN PROJECTED FOR THESE PROGRAMS AND WHY THEY WILL EXPLODE IF THE CLINTON PLAN IS APPROVED WHEN THERE IS LITTLE OR NO CONNECTION BETWEEN THE PRICE OF A PARTICULAR MEDICAL SERVICE AND THE AMOUNT THAT THE CONSUMER PAYS THE BUYER HAS LITTLE OR NO INCENTIVE TO MONITOR COSTS REFERRED TO AS THE THIRDPARTY PAYMENT PROBLEM THIS PHENOMENON IS WIDELY RECOGNIZED AS A MAJOR CULPRIT BEHIND RISING HEALTH CARE COSTS YET THE CLINTON PROPOSAL BY EXPANDING THE ROLE OF THIRDPARTY PAYMENT CAN ONLY STIMULATE EVEN MORE HEALTH CARE SPENDING MANY OF THE NUMBERS IN THE OMB ANALYSIS ARE BASED ON THE RECOGNITION THAT OPTIMISTIC CLAIMS OF FUTURE SPENDING CUTS BASED ON FALLING HEALTH CARE SPENDING ARE NOT LIKELY TO MATERIALIZE MORE SPECIFICALLY THE NUMBERCRUNCHERS ESTIMATE THAT A 75 INCREASE IN SUBSIDIES WOULD ADD 277 BILLION TO THE DEFICIT BY THE YEAR 2000 WHILE THIS MAY SOUND LIKE AN IMPOSSIBLY LARGE ADJUSTMENT OMB KNOWS THAT HEALTH CARE COSTS HAVE A TENDENCY TO RISE DRAMATICALLY DESPITE EFFORTS TO THE CONTRARY THE 1990 BUDGET DEAL FOR INSTANCE WAS SUPPOSED TO CUT MEDICARE BY 60 BILLION OVER FIVE YEARS INSTEAD OF FALLING HOWEVER MEDICARE SPENDING INCREASED BY 1165 BILLION A TOTAL SHIFT OF 1765 BILLION IN A PROGRAM MUCH SMALLER THAN THE PRESIDENT'S PROPOSED PLAN OMB'S SECRET TABLES ALSO RECOGNIZE THAT TAX POLICY IS MORE COMPLICATED THAN THIRDGRADE MATH THE RISK TABLES INCLUDE AN ESTIMATE OF NEW CIGARETTE TAX REVENUE BASED ON THE LOGICAL EXPECTATION THAT CIGARETTE SMOKING WILL DECLINE IN RESPONSE TO AN INCREASE OF MORE THAN 300 IN TOBACCO TAXES THE OMB FIGURES SHOW THAT IF NEW CIGARETTE TAX REVENUES ARE 50 LESS THAN THE ADMINISTRATION'S OFFICIAL PROJECTIONS THE DEFICIT WOULD BE 47 BILLION HIGHER THAN THE WHITE HOUSE CLAIMS BETWEEN 1995 AND 2000 THE ACCOMPANYING TABLE SHOWS OMB'S BUDGETARY PROJECTIONS FOR 11 DIFFERENT REALWORLD ASSUMPTIONS WHILE IT IS DOUBTFUL ALL 11 POTENTIAL DEFICIT SHORTFALLS IDENTIFIED BY OMB WILL COME TO PASS THIS IS NO GUARANTEE THAT THE DEFICIT WILL NOT CLIMB AS MUCH AS THESE PROJECTIONS SHOW MOST NOTABLY THE OMB ANALYSIS NEGLECTS TO CONSIDER THE FACT THAT HIGHER TAXES PREMIUMS WILL RESULT IN A SMALLER TAX BASE AND THEREFORE LESS INCOME AND PAYROLL TAX REVENUE FLOWING TO THE TREASURY THE WHITE HOUSE OF COURSE DISMISSES THESE NUMBERS CLAIMING THAT THEY SIMPLY REPRESENT ROUTINE EFFORTS TO EXAMINE BOTH BESTCASE AND WORSTCASE SCENARIOS UNFORTUNATELY EVERYTHING WE KNOW ABOUT ENTITLEMENT PROGRAMS SUGGESTS THAT REALITY IS EVEN WORSE THAN THE WORST CASE THIS IS PARTICULARLY TRUE FOR THE BEHAVIORAL UNCERTAINTIES WHICH ACCOUNT FOR THE LION'S SHARE OF HIGHER DEFICIT PROJECTIONS EVEN THE ADMINISTRATION'S CLAIM THAT POLICY UNCERTAINTIES HAVE BEEN MADE IRRELEVANT BY SPECIFIC LEGISLATIVE LANGUAGE CANNOT BE TAKEN SERIOUSLY SINCE POLITICIANS HAVE RARELY IF EVER FOLLOWED THROUGH ON PROMISES OF FUTURE SPENDING CUTS THIS IS PARTICULARLY IMPORTANT SINCE THE WHITE HOUSE ASSUMES THAT THE PLAN'S ALLPOWERFUL HEALTH BOARD WILL SUCCEED IN BRINGING THE GROWTH OF HEALTH CARE COSTS DOWN TO THE LEVEL OF GENERAL INFLATION THE ONLY WAY THIS GOAL COULD BE ACHIEVED HOWEVER WOULD BE BY IMPOSING SEVERE PRICE CONTROLS AND HEALTH CARE RATIONING NEEDLESS TO SAY THE ADMINISTRATION VEHEMENTLY DENIES THAT THE PLAN WILL LEAD TO PRICE CONTROLS AND RATIONING AND ASSUMING FUTURE POLITICIANS REFUSE TO TAKE THE WILDLY UNPOPULAR STEP OF ALLOWING RATIONED CARE THERE IS LITTLE DOUBT THAT HEALTH CARE COSTS WOULD CONTINUE TO RISE THIS MEANS OF COURSE THAT THE FORECASTED GLOBAL BUDGET SAVINGS WOULD BE MUCH LOWER THAN PROJECTED JUST AS THE OMB NUMBERS SHOW IT ALSO MEANS THAT THE ADMINISTRATION'S PROJECTED MEDICARE AND MEDICAID SAVINGS WOULD EVAPORATE IF THE WHITE HOUSE HAD ITS WAY CITIZENS WOULD NEVER KNOW THE TRUE COST OF THE HEALTH CARE PLAN NOW THANKS TO THE PRESIDENT'S OWN EMPLOYEES THE AMERICAN PEOPLE ARE DULY WARNEDSHIRT MR MITCHELL IS A FELLOW AT THE HERITAGE FOUNDATION IN WASHINGTON SEE RELATED LETTER LETTERS TO THE EDITOR HEALTH REFORM FINANCING IS SOUND WSJ JAN 18 1994 9312230055 YY94 MM01 9401180124 931214 GET THOSE CARROTS OUT OF MY LATKES AND LOSE THE GARLIC THE PERFECT POTATO PANCAKE FEEDS HOLIDAY DEBATES AND A BOISE CONGREGATION BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL BOISE IDAHO JOE BERENTER RULES WHEN IT COMES TO POTATO PANCAKES HIS NEPHEW SAYS SO HE'S THE BEST HE'S THE LATKE KING THE ADMIRING TEENAGER SAYS TO A KITCHEN FULL OF ADULTS WHO THINK THEY REIGN SUPREME WHEN IT COMES TO MAKING THE TRADITIONAL HANUKKAH TREAT SOME OF MR BERENTER'S RIVALS SMILE TO THEMSELVES SOME SHAKE THEIR HEADS SILENTLY EVERYONE HAS AN OPINION THERE AREN'T MANY JEWS IN BOISE OR FOR THAT MATTER IDAHO THE STATE'S JEWISH POPULATION IS SIMPLY LISTED AS FEWER THAN 500 IN THE MOST RECENT CENSUS REPORT BOISE'S CONGREGATION AHAVATH BETH ISRAEL IS ONE OF THE OLDEST SYNAGOGUES WEST OF THE MISSISSIPPI AND BELIEVED TO BE THE STATE'S ONLY FULLTIME ONE THOUGH JEWS IN OTHER IDAHO TOWNS MANAGE TO FIND PLACES TO GATHER FOR IMPORTANT HOLIDAYS IN BOISE THE PLACE TO BE DURING HANUKKAH IS AHAVATH BETH ISRAEL FOR THE ANNUAL POTLUCK AND POTATOPANCAKE SUPPER HANG OUT IN THE CRAMPED BASEMENT KITCHEN AND YOU CAN COUNT ON LIVELY THAT IS LOUD DISCUSSION ABOUT RECIPES IT'S AN ANNUAL TRADITION OF THE CLOSEKNIT COMMUNITY TO DEBATE THE PURSUIT OF THE PERFECT LATKE POTATOES ARE BIG BUSINESS IN IDAHO A STATE THAT PRODUCES NEARLY 13 BILLION POUNDS A YEAR THIS IS A PLACE WHERE LICENSE PLATES SAY FAMOUS POTATOES AND THERE IS EVEN A POTATOSHAPED CANDY BAR CALLED IDAHO SPUD AMONG JEWS POTATO PANCAKES TAKE ON PARTICULAR SIGNIFICANCE DURING HANUKKAH THE EIGHTDAY FESTIVAL CELEBRATING THE REDEDICATION OF THE SECOND TEMPLE IN JERUSALEM MORE THAN 2000 YEARS AGO BECAUSE THEY ARE FRIED IN OIL THE PANCAKES CALLED LATKES IN YIDDISH HAVE SYMBOLIC MEANING DURING HANUKKAH WHICH ENDS TOMORROW NIGHT CANDLES ARE LIT TO RECALL THE MIRACLE OF HOW A TEMPLE CANDELABRA MANAGED TO BURN FOR EIGHT FULL DAYS ON ONLY A SINGLE DAY'S SUPPLY OF OIL FRIED JELLY DOUGHNUTS ARE ANOTHER TRADITIONAL HANUKKAH TREAT BOISE'S ANNUAL POTLUCK AND LATKE FEED TAKES CAREFUL PLANNING AND COORDINATION IT IS HARD TO FORECAST PRECISELY HOW MANY WILL SHOW UP AND THE SYNAGOGUE TYPICALLY PREPARES TO SERVE ABOUT 100 BUT NO DECISION IS QUITE AS DELICATE AS DETERMINING WHO WILL DO THE COOKING THERE USUALLY ISN'T ANY DOUBT AS TO THE 72YEAROLD MR BERENTER'S PRESENCE HE HAS BEEN FRYING UP CRISP GOLDEN LATKES FOR THE BETTER PART OF A DECADE USING A TRADITIONAL RECIPE FEATURING BISQUICK AS A BINDER PLUS A LITTLE OF THIS AND A LITTLE OF THAT HE SAYS PEERING INTO A HOT OILSPITTING SKILLET AS TREASURER OF THE SYNAGOGUE MR BERENTER IS ACTIVE IN CONGREGATION LIFE AND A MAINSTAY OF THE ANNUAL HANUKKAH PARTY BUT THAT MAKES HIM A TARGET FOR YOUNGER ASPIRING LATKE MAKERS WHO CROWD INTO THE SYNAGOGUE'S KITCHEN RIFE WITH THEIR OWN IDEAS SURE THEY WANT TO HELP OUT WITH THE FEAST BUT WHAT THEY REALLY WANT IS TO MAKE LATKES THEIR WAY THIS YEAR THE ANNUAL HANUKKAH PARTY FALLS ON THE THIRD NIGHT OF THE HOLIDAY A FRIDAY MR BERENTER WHO SOLD BAGS OF BURLAP AND NETTING TO THE POTATO INDUSTRY FOR MORE THAN 40 YEARS BEFORE RETIRING IS IN CHARGE OF BUYING KEY INGREDIENTS DURING THE DRIVE FROM THE SUPERMARKET TO THE SYNAGOGUE MR BERENTER A SMALL MAN DRIVING A LARGE BLUE CHRYSLER FIFTH AVENUE TAKES INVENTORY OF HIS COOKING SUPPLIES HE HAS ONIONS POTATOES AN ELECTRIC FRYING PAN AND AN APRON THAT SAYS LOWCAL LOTKA NOW THAT'S A MIRACLE THE MISSPELLING OF LATKE ON THE APRON ISN'T THE ONLY ERROR THERE'S NOTHING LOWCAL ABOUT A LATKE IT'S ALL GREASE MR BERENTER SAYS WHEN HE WAS YOUNGER AND STRONGER HE SAYS HE GRATED ALL HIS POTATOES BY HAND NOWADAYS I USE MY CUISINART HE CONFIDES MR BERENTER HAS ABOUT 40 MINUTES OF SOLITUDE IN THE SYNAGOGUE'S KITCHEN BEFORE THE ONSLAUGHT OF HELPERS EVEN WITH MECHANICAL INVENTIONS LIKE THE CUISINART LATKEMAKING IS ARDUOUS WORK PEELING POTATOES AND ONIONS BUT MR BERENTER MANAGES ALL THE WHILE CARRYING ON AN ANIMATED CONVERSATION ABOUT HIS LIFELONG PURSUIT OF THE PERFECT LATKE WHEN YOU FRY THEM YOU SHOULD PRESS THEM SO THEY'RE VERY FLAT HE SAYS I PUT IN BISQUICK DON'T ASK ME HOW MUCH I JUST PUT THEY'RE BEST TOPPED WITH SUGAR I DON'T LIKE PUTTING APPLESAUCE ON THEM OR SOUR CREAM TED CENTURY A RETIRED DENTIST WHO HAS STOPPED BY TO SOCIALIZE FOR A WHILE DISAGREES I'M PARTIAL TO APPLESAUCE I DON'T THINK I'D WANT TO PUT SUGAR ON LATKES THE ARRIVAL OF LAUREL CHASAN CARRYING A SACK OF CARROTS DISTURBS MR BERENTER'S RHYTHM CARROTS HE SAYS WITH A MIXTURE OF DISAPPROVAL AND WONDER MRS CHASAN PLANS TO COMBINE GRATED CARROTS WITH COARSELY GRATED POTATOES ONIONS AND SACRILEGE CHOPPED GARLIC SHE USES MATZO MEAL AS THE BINDER INSTEAD OF BISQUICK IT'S AN OLD HIPPIE RECIPE SAYS THE 41YEAROLD MASSAGE THERAPIST AND MOTHER OF THREE IT'S FROM SOME BACKTONATURE GETTINGITALLTOGETHER COOKBOOK THE TWO WORK SIDE BY SIDE IN RELATIVE HARMONY THOUGH MR BERENTER IS SCRUPULOUS ABOUT NOT LETTING MRS CHASAN'S CARROT FLECKS ACCIDENTALLY FALL INTO HIS CREAMY BATTER OH WHAT A PURIST MRS CHASAN SAYS SMILING WILL HE TRY HER LATKES DO I HAVE TO HE MUTTERS MY FAMILY ANNOUNCES MRS CHASAN THINKS I MAKE THE BEST LATKES SHE CRIES WHILE GRATING ONIONS A THIRD CHALLENGER ARRIVES DEBORAH DAVIS A TRANSPLANT FROM MAINE ANOTHER BIG POTATOGROWING STATE SAYS THE SECRET TO HER LATKES IS FINELY GRINDING THE POTATOES AND ADDING BAKING POWDER WHICH MAKES THEM PUFF UP HER LATKES ARE ABOUT A HALFINCH THICKER THAN EITHER MR BERENTER'S OR MRS CHASAN'S IT'S TIME TO TRY THE FIRST LATKES MR BERENTER'S CRISP FLAT ROUNDS MRS CHASAN'S CRUNCHY JAGGEDEDGED PANCAKES AND MRS DAVIS'S FAT SLIGHTLY OVAL VARIETY EVERYONE'S CAREFUL TO SAY MMMM AFTER TRYING EACH ONE THE CONSENSUS MR BERENTER'S ARE A FINE EXAMPLE OF THE TRADITIONAL LATKE WHILE MRS CHASAN'S ARE MORE FLAVORFUL BECAUSE OF THE CARROTS AND GARLIC TO WANDA RINCOVER WHO IS HELPING OUT MRS DAVIS'S LATKES ARE A FOND REMINDER OF PANCAKES HER MOTHER USED TO MAKE FROM LEFTOVER MASHED POTATOES THE LATKES GO FAST ONCE THE SYNAGOGUE'S BASEMENT DINING AREA IS FULL OF FAMILIES THICK WITH THE AROMA OF FRIED ONIONS AND HOT OIL AND NOISY WITH HOLIDAY BANTER OUT HERE YOU WAKE UP AT 2 IN THE MORNING DYING FOR A CORNED BEEF SANDWICH SAYS ALAN TELL A STOCKBROKER WITH SO FEW OF US YOU GET MORE INVOLVED IN THE JEWISH COMMUNITY IF YOU DON'T DO IT NOBODY WILL MR TELL MOVES ON FROM CORNED BEEF AND LATKES TO A SPIRITED DISCUSSION ABOUT CHOPPED LIVER BY THE END OF THE EVENING HE HAS ORGANIZED A CHOPPED LIVER COOKOFF LET'S DO IT ON CHRISTMAS DAY WE DON'T HAVE ANYTHING ELSE TO DO SAYS BOB SIEGEL WHO WAS MARRIED IN THE SYNAGOGUE 18 MONTHS AGO WITH THE KITCHEN CLEANUP ALMOST COMPLETED THE VOCIFEROUS ANNUAL LATKE DEBATE IS PUT TO REST UNRESOLVED FOR ANOTHER YEAR WE HAD TO CREATE A LITTLE TROUBLE OR IT WOULDN'T BE HANUKKAH SAYS MRS CHASAN WIPING A SMEAR OF EGG YOLK FROM A COUNTER MR BERENTER PUTS ON HIS CAP AND HEADS HOME TO HIS WIFE WHOM HE COURTED LONGDISTANCE 47 YEARS AGO BY SHIPPING A BOX OF IDAHO POTATOES TO HER IN HER NATIVE BROOKLYN MRS BERENTER HAD TO MISS THIS YEAR'S DINNER WHILE SHE BABYSAT WITH A GRANDCHILD ON THE SUBJECT OF LATKES MR BERENTER HAS THE LAST WORD IT'S A MATTER OF TASTE I GUESS I DIDN'T LIKE THE OTHERS NOT AS MUCH TRADITION HE PAUSES I WASN'T GOING TO FIGHT THEM THAT WAY YOU HAVE MORE CONGENIALITY DIRECTIONS GRIND POTATOES AND ONION IN CUISINART NOT TOO FINE SO THEY'RE KIND OF GRANULAR PLACE GROUND POTATOES AND ONION IN STRAINER AND USING A SPOON PRESS MIXTURE SO LIQUID DRAINS INTO BOWL BELOW POUR OFF WATER BUT KEEP POTATO STARCH WHICH SETTLES AT THE BOTTOM COMBINE STARCH WITH POTATOONION MIXTURE BEAT EGG AND ADD TO POTATOONION MIXTURE POUR OIL INTO FRYING PAN ENOUGH OIL TO COVER LATKES AND HEAT SPOON LATKE MIXTURE INTO PAN USING A LARGE TABLESPOON SO THERE ARE FOUR OR FIVE LATKES IN THE SKILLET USE A SPATULA TO KEEP LATKES FLAT WHILE THEY ARE COOKING LATKES ARE DONE WHEN THEY'RE BROWN ON BOTH SIDES REAL BROWN REMOVE AND DRAIN ON PAPER TOWEL SPRINKLE WITH SUGAR SERVES ABOUT FOUR PEOPLE THOUGH IT DEPENDS ON HOW MUCH YOU WANT TO EAT DIRECTIONS SHRED POTATOES CARROT ONION COARSELY LIKE HASHBROWNS BY HAND OR IN CUISINART MASH GARLIC CLOVES COMBINE ALL INGREDIENTS EXCEPT OIL WORKING FAST TO AVOID DETERIORATION OF THE VITAMIN C IN THE POTATOES CAUSED BY EXPOSURE TO AIR HEAT 1/4INCH OIL IN SKILLET OVER MEDIUMHIGH HEAT WHEN OIL IS HOT DROP BY LARGE SPOONFULS COOK QUICKLY UNTIL BROWNED TURNING ONCE DRAIN ON PAPER TOWELS BEFORE SERVING TRADITIONAL ACCOMPANIMENTS ARE SOUR CREAM OR APPLESAUCE SEE RELATED LETTERS LETTERS TO THE EDITOR A LATKE IS STILL A LATKE BY ANY OTHER NAME WSJ JAN 18 1994 9312140083 YY94 MM01 9401180006 931230 IN DEFENSE OF RUSSIA'S REFORMERS BY JEFFREY SACHS THE STRANGEST PHENOMENON IN THE WAKE OF RUSSIA'S ELECTIONS HAS BEEN THE TENDENCY OF WESTERN OBSERVERS TO BLAME RUSSIA'S REFORMERS FOR THE RISE OF RIGHTWING AND LEFTWING EXTREMISTS ARTHUR SCHLESINGER JR IS TYPICAL WHEN HE WRITES ON THIS PAGE THAT BIG BANG ENTHUSIASTS FORGET THE LESSONS OF HISTORY WHEN THEY CALL ON GOVERNMENTS IN THE EXSOVIET UNION TO LEAP TO AN UNCONTROLLED MARKET WITHOUT REGARD FOR THE HUMAN DEBRIS LEFT IN THE WAKE BY REPRODUCING THE EVILS OF VICTORIAN CAPITALISM THEY CARELESSLY PREPARE THE GROUND FOR NEOFASCISM IN THE PAST TWO WEEKS MOST OF THE CHARGES AGAINST RUSSIA'S REFORMERS HAVE COME FROM LEFTOFCENTER CRITICS OF THE FREE MARKET IN EARLIER MONTHS THE CRITICISMS CAME FROM THE RIGHT AS WELL AS PUNDITS ATTACKED THE REFORMERS FOR REJECTING A GOLD STANDARD OR A CURRENCY BOARD IN BOTH CASES THE WESTERN CRITICS FAR REMOVED FROM THE RUSSIAN SCENE HAVE A SURREALISTIC VIEW OF RUSSIA'S ECONOMIC AND POLITICAL CONDITIONS THE REFORMERS HAVE BEEN IN NO POSITION TO IMPOSE AN ECONOMIC SYSTEM WHETHER MR SCHLESINGER'S FAVORED NEW DEAL OR A VICTORIANERA LAISSEZ FAIRE THE REFORMERS HAVE HAD TO STRUGGLE IN A TREACHEROUS POPULISTIC AND OFTEN CORRUPT POLITICAL MILIEU AND WITHOUT TIMELY FINANCIAL SUPPORT FROM THE WEST AT THE SAME TIME ECONOMIC COLLAPSE NOT OF THEIR MAKING HAS THREATENED TO DERAIL THE ENTIRE REFORM PROCESS UNDER THESE CONDITIONS EACH STEP OF REFORM HAS BEEN HARD WON LONG BEFORE THE REFORMERS CAME ON THE SCENE THE FORMER SOVIET UNION WAS SLIPPING INTO HYPERINFLATION AND ECONOMIC COLLAPSE DECADES OF MILITARIZATION AND BRUTALIZATION HAD LEFT THE ECONOMY INCAPABLE OF MEETING BASIC HUMAN NEEDS HAD STRANDED MILLIONS OF WORKERS IN HEAVY INDUSTRY WITHOUT A FUTURE AND HAD DESPOILED THE NATURAL ENVIRONMENT COLLAPSING OIL PRODUCTION HEAVY FOREIGN DEBTS TAKEN ON BY MIKHAIL GORBACHEV AND POPULISTIC AND INCONSISTENT BUDGET POLICIES HAD LEFT THE STATE IN BANKRUPTCY IN THESE CONDITIONS ECONOMIC REFORMERS WON SOME OF THE LEVERS OF POWER IN LATE 1991 AND SET ABOUT TO HEAD OFF HYPERINFLATION AND CONVERT THE ECONOMY TO MARKET PRINCIPLES BUT UNLIKE EASTERN EUROPE RUSSIA HAS REMAINED IN REVOLUTIONARY TURMOIL THERE HAS BEEN NO ORDERLY ECONOMIC REFORM IN COMPARISON SAY WITH POLAND AND THE CZECH REPUBLIC AND CERTAINLY NO UNIFIED GOVERNMENT LED BY BIGBANGERS EXCEPT ARGUABLY FOR A BRIEF PERIOD DURING JANUARYJUNE 1992 WITH TACTICAL SKILL AND GRACE UNDER POLITICAL FIRE THE RUSSIAN REFORMERS HAVE HAD SOME REMARKABLE SUCCESSES BUT THEY HAVE BEEN BLOCKED REPEATEDLY IN THEIR HOPES FOR COMPREHENSIVE AND INTERNALLY CONSISTENT REFORMS FOR THESE REASONS IT IS GROTESQUE TO LAY THE RISE OF EXTREMISM AT THEIR DOORSTEP MR SCHLESINGER AND OTHER CRITICS LOOK AT RUSSIA'S APPALLING SOCIAL CONDITIONS AND HARRUMPH THAT THE REFORMERS AND BIG BANG ENTHUSIASTS MUST BE THROWBACKS TO VICTORIAN CAPITALISM IF THESE CRITICS WOULD TAKE EVEN A CURSORY LOOK AT THE REFORMERS' ACTUAL WRITINGS AND SPEECHES THEY WOULD SEE A REPEATED INSISTENCE ON THE NEED FOR SOCIAL PROGRAMS AS WELL AS REPEATED AND UNSUCCESSFUL APPEALS TO THE WEST TO HELP FUND THEM IT IS TRUE THAT THE REFORMERS HAVE FALLEN SHORT OF THE GOAL OF IMPLEMENTING A FINANCIALLY SOUND TARGETED PROGRAM OF SOCIAL AID PERHAPS THEY COULD HAVE DONE BETTER IN THE POLITICAL BRAWL BUT THEIR CONSERVATIVE FOES IN THE GOVERNMENT THE PARLIAMENT AND THE CENTRAL BANK HAVE SHOWN A TRULY RECKLESS DISREGARD FOR REAL SOCIAL NEEDS TO THE COMMUNIST OLD GUARD THE ONLY SAFETY NET OF INTEREST HAS BEEN HUGE SUBSIDIES FOR MILITARYINDUSTRIAL ENTERPRISES AND STATE FARMS RATHER THAN FOR THE DISPOSSESSED AND VULNERABLE PARTS OF THE POPULATION OLDGUARD OPPOSITION FINANCIAL COLLAPSE AND WESTERN INACTION HAVE ALL MEANT THAT THE REFORMERS HAVE LACKED THE WHEREWITHAL TO IMPLEMENT ADEQUATE SOCIAL PROGRAMS CONSIDER THE POLITICAL ENVIRONMENT IN WHICH THE ECONOMIC REFORMERS HAVE OPERATED DURING 1993 THERE WERE TWO LEADING BIGBANGERS IN A CABINET OF MORE THAN 100 THESE TWO LEADERS FINANCE MINISTER BORIS FEDEROV AND PRIVATIZATION MINISTER ANATOLY CHUBAIS ARE REMARKABLE POLITICIANS AND TOUGH INFIGHTERS WHO WERE ABLE TO PUSH REFORMS DESPITE THEIR NEARISOLATION IN THE CABINET THE ORIGINAL HEAD OF THE ECONOMIC REFORMS YEGOR GAIDAR HAD BEEN THROWN OUT OF OFFICE BY THE HARDLINE PEOPLE'S CONGRESS AT THE END OF 1992 AND REJOINED THE GOVERNMENT ONLY IN SEPTEMBER OF THIS YEAR ADDING A THIRD KEY VOICE TO THE REFORM TEAM THROUGHOUT THE YEAR THE GOVERNMENT HAS BEEN HEADED BY PRIME MINISTER VIKTOR CHERNOMYRDIN A GORBACHEVERA APPARATCHIK WHO CAME TO POWER AT THE END OF 1992 AS A COMPROMISE BETWEEN BORIS YELTSIN AND THE HARDLINE SOVIETERA PEOPLE'S CONGRESS AFTER THE CONGRESS SUCCEEDED IN DUMPING MR GAIDAR MR CHERNOMYRDIN VEERED BACK AND FORTH BETWEEN THE REFORMERS AND THE CONSERVATIVES HE GENERALLY SIDED WITH MR FEDEROV IN BLOCKING RECKLESSLY INFLATIONARY SPENDING INITIATIVES BUT ALSO BLOCKED MR FEDEROV ON SEVERAL CRUCIAL MEASURES NEEDED FOR EFFECTIVE STABILIZATION MR CHERNOMYRDIN ALSO PROTECTED COMMUNISTERA CENTRAL BANK CHAIRMAN VIKTOR GERASHCHENKO WHOSE IRRESPONSIBILITY DISHONESTY AND INCOMPETENCE HAVE PLAYED A KEY ROLE IN PREVENTING STABILIZATION AT VARIOUS POINTS THROUGHOUT THE YEAR MR CHERNOMYRDIN ALSO TURNED ON MR CHUBAIS ATTACKING MR CHUBAIS'S ENORMOUSLY SUCCESSFUL PRIVATIZATION PROGRAM DURING THE YEAR PRESIDENT BORIS YELTSIN WAS BUSY HEADING OFF IMPEACHMENT BY THE HARDLINE SOVIETERA PARLIAMENT ORGANIZING AND WINNING A REFERENDUM ON HIS LEADERSHIP AND ECONOMIC REFORMS IN APRIL JUGGLING A HUGELY COMPLEX SET OF FOREIGN POLICY ISSUES SUPERVISING THE DRAFTING OF THE NEW CONSTITUTION NEGOTIATING WITH RESTIVE REPUBLICS AND REGIONS WITHIN RUSSIA DEALING WITH AN UNHAPPY AND FINANCIALLY STRAPPED ARMY FACING OFF AGAINST THE PARLIAMENT IN SEPTEMBER AND PUSHING THROUGH NEW ELECTIONS IN DECEMBER HE DID NOT PLAY A HANDSON ROLE ON MOST ECONOMIC ISSUES LEAVING THESE TO THE DEEPLY DIVIDED GOVERNMENT MR YELTSIN'S MAIN ECONOMIC ROLE HAS BEEN TO SUPPORT THE PRESENCE OF THE ECONOMIC REFORMERS IN THE CABINET AND THEN TO LEAVE THEM TO WIN THEIR OWN POLITICAL BATTLES ECONOMIC REFORM HAS BEEN HANDTOHAND POLITICAL COMBAT NOT POLITICAL CHESS THE REFORMERS HAVE DONE EXTRAORDINARILY WELL MORE THAN 80000 ENTERPRISES HAVE BEEN PRIVATIZED SETTING THE BASE FOR A NEW MIDDLE CLASS AND ENTREPRENEURIAL CLASS AS WELL AS SETTING IN MOTION REAL RESTRUCTURING OF MANY ENTERPRISES MARKETS ARE FUNCTIONING IF IN RUDIMENTARY FASHION SHORTAGES HAVE BEEN MOSTLY ELIMINATED PERHAPS MOST IMPORTANT MR FEDEROV WAS ABLE TO HEAD OFF HYPERINFLATION WHICH COULD HAVE DERAILED THE WHOLE PROCESS OF ECONOMIC AND POLITICAL LIBERALIZATION UNDER MR FEDEROV'S LEADERSHIP THE MONTHLY INFLATION RATE HAS GONE FROM A FRIGHTENING 28 IN JANUARY TO A MERE 12 OR SO IN DECEMBER WITH REAL WESTERN FINANCIAL HELP FAR MORE COULD HAVE BEEN ACCOMPLISHED NONETHELESS THE ECONOMIC SITUATION REMAINS CONFUSED AND DEEPLY THREATENING TO THE AVERAGE RUSSIAN LIKE THE WESTERN PUNDITS MANY OF THE RUSSIAN PEOPLE VOTING IN THIS MONTH'S ELECTIONS ATTRIBUTED HIGH INFLATION AND INSTABILITY TO THE REFORMS RATHER THAN TO THE BACKWASH OF COMMUNIST COLLAPSE AND CONTINUED POLITICAL INFIGHTING KEYNES WAS SURELY RIGHT WHEN HE NOTED THAT INFLATION ENGAGES ALL THE HIDDEN FORCES OF ECONOMIC LAW ON THE SIDE OF DESTRUCTION AND DOES IT IN A MANNER WHICH NOT ONE MAN IN A MILLION IS ABLE TO DIAGNOSE IN THE END THE REFORMERS WERE WIDELY VIEWED AS THE INCUMBENTS EVEN THOUGH THEY HAD TAKEN ON ONE OF THE COLOSSAL MESSES OF THE CENTURY JUST TWO YEARS BEFORE AND NEVER HAD THE UNDISPUTED CONTROL OVER THE ECONOMIC LEVERS NEEDED TO CLEAN IT UP THE TENDENCY TO BLAME THE REFORMERS AND THE REFORMS IN THESE CIRCUMSTANCES IS DISAPPOINTING ENOUGH WHAT IS TRULY REMARKABLE IS THE FAILURE OF MOST RUSSIAWATCHERS IN THE WEST TO CAST THEIR GAZE BEYOND RUSSIA TO LEARN HOW REFORMS ARE FARING ELSEWHERE HERE THE RECORD IS CLEAR COUNTRIES IN EASTERN EUROPE AND THE FORMER SOVIET UNION THAT HAVE MOVED RAPIDLY THAT HAVE PROMOTED A BIG BANG SO DISPARAGED BY MR SCHLESINGER AND OTHERS HAVE DONE VASTLY BETTER THAN COUNTRIES THAT HAVE OPTED FOR GRADUALISM OR THAT HAVE REMAINED STUCK IN RUSSIANSTYLE INCONSISTENCIES THE IDEOLOGICAL GRADUALISTS SUCH AS UKRAINE AND ROMANIA HAVE WON NOTHING FOR THEIR SOFTER PROGRAMS UKRAINE IS IN HYPERINFLATION WITH INFLATION OF AROUND 70 A MONTH WAGES ARE AROUND 5 A MONTH WHEN CONVERTED AT THE BLACK MARKET EXCHANGE RATE FACTORIES ARE SHUTTING DOWN FOR LACK OF PARTS AND BASIC COMMODITIES ARE ONCE AGAIN BEING RATIONED ROMANIA REMAINS THE HIGHEST INFLATION COUNTRY IN EASTERN EUROPE THE RADICAL REFORMERS SUCH AS POLAND THE CZECH REPUBLIC AND THE BALTIC STATES BY CONTRAST HAVE CURBED INFLATION AND ARE STARTING TO GROW POLAND INDEED HAD THE HIGHEST ECONOMIC GROWTH IN EUROPE THIS YEAR NEARLY 5 EVEN THOUGH A LEFTOFCENTER COALITION WON THE POLISH ELECTIONS IN SEPTEMBER POLAND REMAINS FIRMLY WEDDED TO THE PATH OF REFORM IT HAS ACHIEVED A BROAD POLITICAL CONSENSUS ON THE BASIC REFORM GOALS RUSSIA'S FUTURE COURSE WILL DEPEND ON THE OUTCOME OF THE CONTINUING POWER STRUGGLE AMONG RUSSIA'S REFORMERS THE OLDGUARD APPARATCHIKS AND THE GROWING FORCES OF POLITICAL EXTREMISM ON THE RIGHT AND LEFT THE KEY QUESTION IS WHETHER THE REFORMERS WILL WIN THE POWER TO IMPLEMENT STRONG AND COHERENT REFORMS IF THE WEST IS TO HELP RUSSIA FIND ITS WAY TO DEMOCRACY AND A VIABLE MARKET ECONOMY IT WON'T DO IT BY LAUNCHING ATTACKS ON THE VERY POLITICIANS AND ECONOMISTS EAGER TO CREATE A NORMAL POLITICAL AND ECONOMIC SYSTEM INCLUDING ADEQUATELY FUNDED SOCIAL PROGRAMS WE SHOULD WORK URGENTLY WITH THESE REFORMERS TO DEVELOP A COMPREHENSIVE PROGRAM OF REFORM BACKED BY WESTERN ASSISTANCE THAT GIVES RUSSIA A REAL CHANCE TO ESCAPE FROM ITS DANGEROUS CRISIS MR SACHS IS A PROFESSOR OF ECONOMICS AT HARVARD AND ADVISER TO THE RUSSIAN GOVERNMENT SEE RELATED LETTER LETTERS TO THE EDITOR RUSSIAN REFORMATION AND CURRENCY BOARDS WSJ JAN 18 1994 9312300096 YY94 MM01 9401170071 931215 LETTERS TO THE EDITOR IN THE BEGINNING THERE WAS IN HIS DEC 6 EDITORIAL PAGE PIECE A SCOPES TRIAL FOR THE 90S ON PROF DEAN KENYON'S TROUBLES AT SAN FRANCISCO STATE UNIVERSITY STEPHEN C MEYER EXHIBITS SERIOUS MISUNDERSTANDINGS OF SCIENCE ACADEMIC FREEDOM AND THE CREATION/EVOLUTION CONTROVERSY FIRST EITHER LIFE ORIGINATED NATURALLY OR SUPERNATURALLY SCIENCE IS LIMITED TO ONLY NATURAL EXPLANATIONS YES THEORETICIANS IN THIS AREA RELY ON MATERIALIST EXPLANATIONS THEY ARE DOING SCIENCE PROF KENYON'S TEACHING OF INTELLIGENT DESIGN IS INDEED RELIGION NOT SCIENCE FURTHER IF TODAY WE DON'T KNOW ALL THE STEPS INVOLVED IN THE ORIGIN OF LIFE THIS DOESN'T MEAN WE HAVE TO LEAP TO A SUPERNATURAL EXPLANATION OR TO CONCLUDE THAT EVOLUTION DIDN'T OCCUR WHICH IS PROF KENYON'S MESSAGE AND WHY HE IS OPPOSED BY HIS CHAIRMAN AND OTHER SCIENTISTS SECOND ACADEMIC FREEDOM ALSO REQUIRES ACADEMIC RESPONSIBILITY THE FIRST RESPONSIBILITY IS TO STUDENTS WHO SHOULD GET WHAT THEY SIGN UP FOR IN A BIOLOGY CLASS STUDENTS SHOULD BE TAUGHT BIOLOGY NOT THEOLOGY REGARDLESS OF ITS LUKEWARM SUPPORT IN THE GENERAL PUBLIC EVOLUTION IS THE FOUNDATION PRINCIPLE OF BIOLOGY AND TEACHING THAT IT DIDN'T OCCUR IS EQUIVALENT TO TEACHING FLATEARTH GEOGRAPHY IT IS NOT A VIOLATION OF PROF KENYON'S ACADEMIC FREEDOM TO ASK HIM TO TEACH STANDARD BIOLOGY IN FACT HE TEACHES HIS NONSTANDARD BIOLOGY IN UPPER DIVISION CLASSES AND IN GRADUATE SEMINARS IT IS ONLY IN A FRESHMAN COURSE WHERE STUDENTS ARE LEAST PREPARED TO UNDERSTAND WHY HIS IDEAS ARE WRONG THAT HE IS RESTRICTED WHAT PROF KENYON IS TEACHING BY HIS OWN ADMISSION AND THE TESTIMONY OF STUDENTS IN THE CLASS IS A VIEW OF EVOLUTIONARY THEORY EXEMPLIFIED IN HIS BOOK OF PANDAS AND PEOPLE WHICH PRESENTS INTELLIGENT DESIGN THEORY A MUTATION SO TO SPEAK OF SCIENTIFIC CREATIONISM THAT REFLECTS THE SAME RELIGIOUSLY INSPIRED CARICATURE OF EVOLUTIONARY THEORY AND BAD BIOLOGY AS ITS ANCESTOR PROF KENYON CLAIMS IN PANDAS THAT TWO COMPLETELY HYBRID SIC INDIVIDUALS COULD PRODUCE OFFSPRING EXHIBITING THE COMPLETE RANGE OF POSSIBLE SKIN COLORS A STATEMENT BREATHTAKINGLY IGNORANT OF GENETICS BUT EXPLAINING HOW THE GREAT RANGE OF HUMAN SKIN COLORS COULD ARISE FROM NOAH AND HIS FAMILY STUDENTS DESERVE BETTER THE SILENCING OF PROF KENYON FOR SHARING WITH STUDENTS HIS SKEPTICISM OF THE ORTHODOX THEORY OF THE CHEMICAL EVOLUTION OF LIFE IS A CHILLING EXAMPLE OF INTELLECTUAL INTOLERANCE IN THE SCIENTIFIC COMMUNITY HOWEVER BAD AS IT IS IT DIRECTLY AFFECTS ONLY A FEW INDIVIDUALS MUCH WORSE IN MY VIEW IS THE DISHONEST TREATMENT OF THE TOPIC OF CHEMICAL EVOLUTION IN THE MOST WIDELY USED TEXTBOOKS FOR COLLEGE BIOCHEMISTRY AND MOLECULAR BIOLOGY BOOKS SUCH AS MOLECULAR BIOLOGY OF THE GENE BENJAMIN/CUMMINGS PRINCIPLES OF BIOCHEMISTRY WORTH AND BIOCHEMISTRY JOHN WILEY & SONS ROUTINELY PLAY UP THOSE EXPERIMENTS THAT CAN BE CONSTRUED AS SUPPORTING CHEMICAL EVOLUTION WHILE GREATLY DOWNPLAYING OR IGNORING ALTOGETHER UNCONGENIAL RESULTS THUS STUDENTS ARE LED TO BELIEVE WHAT PROFESSIONALS IN THE FIELD KNOW TO BE FALSE THAT SCIENCE CAN EXPLAIN THE ORIGIN OF LIFE IF THE TOPIC DIDN'T CARRY SUCH IDEOLOGICAL WEIGHT CURRENT THEORIES OF CHEMICAL EVOLUTION WOULD BE LAUGHED TO SILENCE THE DISSERVICE THAT TEXTBOOK PUBLISHERS DO TO STUDENTS SEEKING A TRUE UNDERSTANDING OF THE WORLD IS SCANDALOUS MR MEYER HAS THE KENYON AFFAIR ALL MIXED UP AS A TEACHER OF THE HISTORY OF SCIENCE HE SHOULD KNOW THAT INTELLIGENT DESIGN OF ORGANISMS STOPPED BEING A TENABLE HYPOTHESIS EARLY IN THE 19TH CENTURY THERE ARE SIMPLY TOO MANY EXAMPLES OF CLUMSY AND REDUNDANT DESIGN KNOWN THESE ARE THE SIGNATURE OF TRIAL AND SELECTION NOT INTELLIGENCE PROF KENYON HAS SLIPPED BACKWARD ALMOST 200 YEARS FOR REASONS THAT ONLY HE AND HIS FELLOW CREATIONISTS CAN APPRECIATE STUDENTS ENROLLING IN INTRODUCTORY BIOLOGY EXPECT AND NEED TO GET A MODERN VIEW OF BIOLOGY NOT ONE THAT IS TWO CENTURIES OUT OF DATE AND TINGED WITH OLDTIME RELIGION MR MEYER COMPLAINS THAT PROF KENYON WAS ORDERED NOT TO TEACH CREATIONISM' BY THE CHAIRMAN OF HIS BIOLOGY DEPARTMENT MR MEYER REPRESENTS DR KENYON AS AN ACKNOWLEDGED EXPERT ON EVOLUTIONARY THEORY AUTHORITY ON THE SCIENTIFIC STUDY OF THE ORIGIN OF LIFE AND AS A WORLDCLASS SCIENTIST THESE ENCOMIUMS ARE LONG OUT OF DATE DR KENYON STOPPED PUBLISHING IN PEERREVIEWED SCIENTIFIC JOURNALS ABOUT 16 YEARS AGO WHEN HE BECAME PREOCCUPIED WITH RELIGIOUS CONCEPTS OF BIOLOGY INTELLIGENT DESIGN AND IN 1981 HE PROCEEDED TO INCLUDE CREATIONISM IN HIS BIOLOGY 337 COURSE ON EVOLUTION THE FACULTY THEN VOTED NOT TO INCLUDE CREATIONISM IN THE DESCRIPTION OF THIS COURSE THE PRESENT INCIDENT OF WHAT MR MEYER CALLS INTOLERANCE RESULTED FROM STUDENTS COMPLAINING THAT DR KENYON PRESENTED UNSCIENTIFIC MATERIAL IN HIS LECTURES THE FACULTY COMMENTS THAT STUDENTS HAVE THE RIGHT TO THE INSTRUCTION PROMISED THEM IN OFFICIAL UNIVERSITY PUBLICATIONS BUT NO ONE IS ATTEMPTING TO RESTRICT THE EXPRESSION OF HIS DR KENYON'S VIEWS IN HIS PERSONAL PROFESSIONAL ENDEAVORS CONTRARY TO MR MEYER EVOLUTION AND ORIGINS ARE TWO DIFFERENT TOPICS THE ARGUMENTS FOR INTELLIGENT DESIGN PRESUPPOSE THE EXISTENCE OF A CREATOR AND ARE THEREFORE RELIGIOUSLY BIASED I AM ANGRY THAT THE CAREERS OF MEN WITH UNQUESTIONED QUALIFICATIONS HAVE BEEN INTERRUPTED BY WHAT YOU HAVE TACTFULLY CALLED POLITICAL CORRECTNESS BUT WHICH IS NOTHING LESS THAN BLANTANT ANTIRELIGIOUS BIGOTRY AND I AM FRUSTRATED THAT THE JOURNAL IS ONE OF THE VERY FEW MAJOR NEWSPAPERS TO SYMPATHIZE WITH THEIR PLIGHT HAVING LOST A POSITION AS A COLUMNIST FOR SCIENTIFIC AMERICAN AFTER THE TOP EDITOR AND TWO JUNIOR EDITORS QUESTIONED ME ABOUT MY PERSONAL BELIEFS CONCERNING DARWINIAN EVOLUTION THE BIBLE AND ABORTION I UNDERSTAND HOW DR KENYON MUST FEEL ALTHOUGH THE AMERICAN ASSOCIATION FOR THE ADVANCEMENT OF SCIENCE SUPPORTED MY POSITION AND VIRTUALLY ALL OF THE MORE THAN 100 JOURNALISTS WHO INTERVIEWED ME WERE SYMPATHETIC I HAVE YET TO BE REINSTATED AT SCIENTIFIC AMERICAN AND TWO MAJOR SCIENCE PUBLICATIONS ADMITTEDLY FAMILIAR WITH THE STORY HAVE SINCE REBUFFED MY PROPOSALS TO MAKE CONTRIBUTIONS DR KENYON'S CASE RAISES THE TROUBLING SECONDARY ISSUE OF INSTITUTIONALIZED PATHOLOGICAL SCIENCE PRACTICED BY SCIENTISTS WHOSE FAITH IN WHAT THEY HAVE FAILED TO PROVE IS AS DOGMATIC AS THAT OF THE STAUNCHEST RELIGIOUS FUNDAMENTALIST PROF KENYON'S RESEARCH HAS CONVINCED HIM TO REJECT DARWIN'S UNPROVED SPECULATION THAT LIFE AROSE SPONTANEOUSLY ALTHOUGH HIS VIEWS ARE AT LEAST AS PHILOSOPHICALLY TENABLE AS THOSE OF THE DARWINISTS TO THE DARWINISTS DR KENYON IS A THREAT IRRATIONAL HOWLS OF PROTEST APPEAR ANY TIME A SUGGESTION IS MADE THAT VIEWS LIKE THOSE HELD BY KENYON BE INCLUDED IN A SCHOOL TEXTBOOK ANY SOCALLED SCIENTIFIC INSTITUTION OR PUBLICATION THAT REASSIGNS A DISTINGUISHED PROFESSOR OR FIRES A COLUMNIST SOLELY BECAUSE OF A SCIENTIFIC VIEW THAT LEAVES ROOM FOR GOD IS NEITHER SCIENTIFIC NOR AMERICAN TOLERATING SUCH RELIGIOUS DISCRIMINATION OR SOFTPEDALING IT AS POLITICAL CORRECTNESS ERODES THE CAUSE OF SCIENCE AND BLOCKS ONE OF THE MOST FUNDAMENTAL OF HUMAN RIGHTS I OFFER THE FOLLOWING ILIFF'S 10 RULES OF SCIENTIFIC FUNDAMENTALISM MR MEYER'S FINE ESSAY MAY HAVE HAD A BENEFICIAL EFFECT ON ACADEMIC FREEDOM AT SFSU ON THE DAY FOLLOWING THE ARTICLE'S PUBLICATION THE UNIVERSITY SENATE VOTED 25 TO 8 WITH 3 ABSTENTIONS TO ASK THE DEAN AND BIOLOGY DEPARTMENT CHAIRMAN TO REINSTATE PROF KENYON IN THE INTRODUCTORY BIOLOGY COURSE FROM WHICH HE HAD BEEN SUMMARILY REMOVED IT REMAINS TO BE SEEN WHETHER THE VOTE WILL INFLUENCE THE ADMINISTATORS TO BACK DOWN LIKE MANY SCIENCE EDUCATORS THEY INSIST THAT ACADEMIC FREEDOM DOES NOT EXTEND TO THOSE WHO WOULD QUESTION THE PHILOSOPHICAL MATERIALISM THAT RULES EVOLUTIONARY BIOLOGY PERHAPS THE AUGUST NATIONAL ACADEMY OF SCIENCES WHICH OPPOSES ALL DOGMATIC RESTRICTIONS ON SCIENTIFIC THOUGHT SHOULD ADDRESS THE FOLLOWING QUESTION IS A SCIENTIST ALLOWED TO CRITICIZE THE REIGNING MATERIALIST THEORIES OF CHEMICAL AND BIOLOGICAL EVOLUTION EVEN TO THE POINT OF SUGGESTING THAT SOMETHING OTHER THAN PURPOSELESS MATERIAL PROCESSES MAY HAVE BEEN AT WORK SEE RELATED LETTERS LETTERS TO THE EDITOR THE HARMONY OF NATURAL LAW WSJ JAN 17 1994 9401100138 YY94 MM01 9401170065 931202 POLITICS & POLICY CLINTON FACING CONFLICTING ADVICE ON SUPERFUND MAY ATTEMPT TO EASE THE BURDENS ON BUSINESS BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOR THE LAST DECADE THE SUPERFUND LAW DESIGNED TO CLEAN UP THE NATION'S HAZARDOUSWASTE SITES HAS FUELED A FEVERISH DEBATE BETWEEN BUSINESS AND ENVIRONMENTALISTS ENVIRONMENTALISTS PRAISE THE LAW FOR MAKING POLLUTERS PAY FOR THEIR PAST DUMPING BUT BUSINESSES COMPLAIN THAT THE LAW PUTS AN UNFAIR BURDEN ON THEM BY CHANGING THE RULES RETROACTIVELY AND SOMETIMES FORCING THEM TO PAY DEARLY TO CLEAN UP THE MESSES OTHERS HAVE MADE THE LAW ALSO LEADS TO COSTLY AND LENGTHY LITIGATION THEY ARGUE NOW THE DEBATE IS ABOUT TO BE THROWN IN PRESIDENT CLINTON'S LAP AS THE ADMINISTRATION PREPARES TO SEND CONGRESS ITS PROPOSAL FOR RENEWING THE LAW IN THE NEXT FEW WEEKS HE WILL HAVE TO CHOOSE BETWEEN HIS ENVIRONMENTAL PROTECTION AGENCY WHICH IS ARGUING THE ENVIRONMENTALISTS' CASE AND HIS TREASURY DEPARTMENT WHICH IS PUSHING FOR SWEEPING REFORMS TO REDUCE THE BURDEN ON BUSINESS MORE CLEARLY THAN ANY PREVIOUS ISSUE THIS YEAR THE SUPERFUND DEBATE WILL FORCE MR CLINTON TO RECONCILE HIS ADMINISTRATION'S CALL FOR ENVIRONMENTAL ACTIVISM WITH ITS DESIRE TO COURT BUSINESS AND ENCOURAGE ECONOMIC GROWTH ALREADY THE ADMINISTRATION IS MOVING TOWARD SEEKING TO EASE UP ON BUSINESS AND THAT HAS SOME ENVIRONMENTALISTS ON EDGE WE ARE EXTREMELY NERVOUS SAYS CAROLYN HARTMAN STAFF ATTORNEY FOR THE US PUBLIC INTEREST RESEARCH GROUP AN ENVIRONMENTAL ADVOCACY GROUP LIABILITY HAS BEEN AN EXTREMELY POWERFUL TOOL TO GET COMPANIES TO CHANGE THEIR BEHAVIOR BUT THE BUSINESS COMMUNITY LED BY INSURERS SEES THE REWRITING OF THE SUPERFUND LAW AS A CHANCE TO RID ITSELF OF BURDENSOME LITIGATION THAT HAS SWALLOWED UP 3 BILLION SINCE THE LEGISLATION WAS PASSED SUPERFUND CREATES ENORMOUS INCENTIVES TO WASTE MONEY LARGELY THROUGH LITIGATION SAYS MICHAEL MCGAVICK DIRECTOR OF THE AMERICAN INSURANCE ASSOCIATION'S SUPERFUND IMPROVEMENT PROJECT THE FINAL SHAPE OF THE ADMINISTRATION'S SUPERFUND PROPOSAL DUE TO BE UNVEILED NEXT MONTH IS STILL BEING WORKED OUT THE ISSUES ARE SCHEDULED TO BE DISCUSSED BY TOP WHITE HOUSE OFFICIALS CABINET MEMBERS AND EPA ADMINISTRATOR CAROL BROWNER AT A MEETING TOMORROW BUT THERE ARE SHARP DIFFERENCES AND PRESIDENT CLINTON HIMSELF LIKELY WILL HAVE TO RESOLVE THEM LATER THE PLAN WILL GO TO CONGRESS WHERE DEMOCRATS WHO HAVE TAKEN THE LEAD ON THE ISSUE HAVE WARNED THAT THEY DON'T FAVOR EXTENSIVE CHANGES IN THE LAW'S LIABILITY REQUIREMENTS THE SUPERFUND LAW PASSED IN 1980 AND LAST RENEWED IN 1986 ESTABLISHED A TRUST FUND TO PAY FOR CLEANING UP HAZARDOUS WASTE THE FUND IS FINANCED PARTLY BY TAXES ON CRUDE OIL AND CHEMICALS THE REMAINDER IS FUNDED BY INDIVIDUAL BUSINESSES AND OTHER ORGANIZATIONS HELD RESPONSIBLE FOR AT LEAST PART OF THE HAZARDOUSWASTE DUMPING AT A PARTICULAR SITE OR BY THEIR INSURERS THOUGH FINAL DETAILS HAVE YET TO BE DECIDED THE ADMINISTRATION PLAN IS SURE TO SHIFT AT LEAST PART OF THE COST OF CLEANING UP HAZARDOUSWASTE DUMPS FROM INDIVIDUAL POLLUTING COMPANIES TO THE FEDERAL GOVERNMENT THE GOVERNMENT IN TURN WOULD LIKELY FUND SUCH ACTIVITY BY COLLECTING FEES FROM INSURANCE COMPANIES AND OTHER BUSINESS SECTORS AT THE SAME TIME THE ADMINISTRATION IS HOPING TO REDUCE CLEANUP COSTS ASSOCIATED WITH SUPERFUND NO MATTER WHO IS PAYING SUPERFUND IMPORTANT AS IT IS TO OUR OVERALL COMPLEX OF ENVIRONMENTAL LAWS COSTS TOO MUCH ROBERT SUSSMAN DEPUTY EPA ADMINISTRATOR TOLD AN INDUSTRY GATHERING THIS WEEK MR SUSSMAN ALSO VOICED CONCERN ABOUT LITIGATION COSTS WHICH HE SAID ACCOUNT FOR ROUGHLY ONEQUARTER OF ALL SPENDING ON SUPERFUND THE ISSUE IS A LONGSTANDING CONCERN TO MR CLINTON IN HIS FIRST ADDRESS TO CONGRESS LAST FEBRUARY HE SAID I'D LIKE TO USE THAT SUPERFUND TO CLEAN UP POLLUTION FOR A CHANGE AND NOT JUST PAY LAWYERS EVEN AMONG THOSE WHO AGREE WITH THESE GENERAL GOALS HOWEVER THERE REMAINS SPLINTERING DISAGREEMENT WITHIN THE CLINTON ADMINISTRATION THE TREASURY DEPARTMENT AND THE WHITE HOUSE COUNCIL OF ECONOMIC ADVISERS HAVE BATTLED WITH THE EPA THE ENERGY DEPARTMENT AND THE JUSTICE DEPARTMENT OVER THE EXTENT TO WHICH CLEANUP COSTS SHOULD BE SHIFTED AWAY FROM INDIVIDUAL POLLUTERS THE ECONOMIC AGENCIES NOTE THAT THE LAW AS CURRENTLY WRITTEN OFTEN PUNISHES BUSINESSES FOR DISPOSING OF HAZARDOUS WASTE IN A MANNER CONSIDERED PERFECTLY LEGAL AT THE TIME IT WAS DONE IN SOME INSTANCES AT THE DIRECTION OF STATE GOVERNMENTS AS A CONSEQUENCE THEY ARGUE THE LAW SHOULDN'T BE IMPOSED RETROACTIVELY ON DUMPING THAT OCCURRED PRIOR TO ITS PASSAGE IN 1980 BUT THE EPA AND THE ENERGY AND JUSTICE DEPARTMENTS ARGUE THAT DROPPING THE RETROACTIVITY PROVISION WOULD EVISCERATE THE POLLUTER PAYS PRINCIPLE AND WOULD POSE FISCAL PROBLEMS FOR THE FEDERAL GOVERNMENT SPECIALINTEREST GROUPS MEANWHILE HAVE LINED UP SOMEWHAT UNPREDICTABLY ON BOTH SIDES THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE WHOSE NEW EXECUTIVE DIRECTOR THE REV BEN CHAVIS IS A LONGTIME ADVOCATE OF ENVIRONMENTAL JUSTICE HAS RANKLED ENVIRONMENTAL GROUPS BY PROPOSING A PLAN THAT MORE CLOSELY RESEMBLES THE TREASURY POSITION THAN THE EPA'S OUR COMMUNITIES ARE DISPROPORTIONATELY EXPOSED TO REAL HAZARDS LIFEANDDEATH SUBSTANCES SAYS REV CHAVIS AND NOTHING HAS HAPPENED SUBSTANTIVELY OVER 13 YEARS TO SPEED CLEANUPS REV CHAVIS FAVORS SCRUBBING THE CURRENT SUPERFUND LIABILITY AND NEARLY DOUBLING THE ANNUAL FUNDING AVAILABLE FOR CLEANUPS TO 4 BILLION TO BE PAID FOR BY A BROADBASED BUSINESS TAX IN ADDITION HIS PLAN WOULD DIVERT SOME SUPERFUND DOLLARS TO PROMOTE COMMUNITY DEVELOPMENT IN SUPERFUND AREAS WHICH TEND TO BE IN LOWINCOME AND MINORITY NEIGHBORHOODS MEANWHILE THE CHEMICAL MANUFACTURERS ASSOCIATION FAVORS A SOLUTION THAT BEARS GREATER RESEMBLANCE TO THE EPA'S PROPOSAL THAN THE TREASURY'S BECAUSE IT WOULD CONTINUE TO APPLY THE LAW RETROACTIVELY RETROACTIVE LIABILITY IS NOT SOMETHING WE LIKE EXPLAINS JACKIE SINCORE AN ATTORNEY WITH THE ASSOCIATION BUT CHEMICAL MANUFACTURERS ARE EVEN MORE WORRIED THAT ABOLISHING RETROACTIVE LIABILITY WOULD LEAD TO HIGHER TAXES AT A TIME WHEN THEY ARE ALREADY CONCERNED ABOUT THEIR ABILITY TO COMPETE ABROAD THE BUSINESS SECTOR PUSHING MOST AGGRESSIVELY TO MINIMIZE THE LIABILITY OF INDIVIDUAL COMPANIES IS THE INSURANCE INDUSTRY WHICH HAS GOTTEN STUCK WITH MUCH OF THE TAB INSURERS WANT TO ELIMINATE ALL LIABILITY THROUGH 1986 SIX YEARS AFTER SUPERFUND BECAME LAW ON THE GROUNDS THAT COMPANIES WEREN'T LEGALLY BOUND TO MAINTAIN DETAILED RECORDS ON DUMPING UNTIL 1987 NOT COINCIDENTALLY 1987 WAS ALSO THE YEAR WHEN INSURERS SHIFTED TO NEW CONTRACTS THAT EXPLICITLY DELETED COVERAGE FOR SUPERFUND SITES A COALITION OF INSURANCE AND OTHER COMPANIES LED BY CONTINENTAL INSURANCE CO FIREMAN'S FUND AND CRUM & FORSTER WHICH WAS RECENTLY RENAMED TALEGEN HOLDINGS HAS PROPOSED A VARIETY OF TAX INCREASES INCLUDING A NEW 300 MILLION TAX ON INSURERS TO FUND SUPERFUND CLEANUPS TREASURY OFFICIALS ARE HOPING THAT THEY CAN BID INSURERS UP SOMEWHAT HIGHER WHILE EPA OFFICIALS CONTEND THAT THE TREASURY IS UNDERESTIMATING THE COST OF REPLACING THE CURRENT LIABILITY SCHEME TREASURY AND EPA STAFFERS HAVE WORKED OUT A TENTATIVE AGREEMENT ON THE CONTENTIOUS ISSUE OF JOINT AND SEVERAL LIABILITY WHICH ALLOWS THE FEDERAL GOVERNMENT TO REQUIRE A COMPANY TO CLEAN UP AN ENTIRE DUMPSITE EVEN IF IT IS RESPONSIBLE FOR ONLY A SMALL PORTION OF THE WASTE THE TREASURY INITIALLY FAVORED ELIMINATING THE LIABILITY WHILE THE EPA FAVORED KEEPING IT IN THE END THE TWO SIDES AGREED TO MAINTAIN THE LIABILITY BUT TO CAP THE AMOUNT THAT A COMPANY WOULD HAVE TO PAY AT AN ASYET UNSPECIFIED LEVEL IN ADDITION BOTH SIDES HAVE AGREED TO ESTABLISH A NATIONAL STANDARD FOR CLEANING UP HAZARDOUSWASTE SITES AT LEAST FOR CERTAIN COMMON CONTAMINANTS ACCORDING TO THE EPA'S MR SUSSMAN BUT THE TREASURY DEPARTMENT AND THE EPA REMAIN IN DISPUTE OVER HOW RIGID THAT STANDARD SHOULD BE IN MR SUSSMAN'S WORDS HOW CLEAN IS CLEAN SEE RELATED LETTER LETTERS TO THE EDITOR FAIR SHARE' LIABILITY FOR TOXIC SITE CLEANUP WSJ JAN 3 1994 SEE RELATED LETTER LETTERS TO THE EDITOR SUPERFUND CLEANUPS GIVE THEM TO STATES WSJ JAN 17 1994 9312020078 9401030029 YY94 MM01 9401170003 931222 AN ARMY OF SCHINDLERS FROM ITALY BY DOROTHY RABINOWITZ OSKAR SCHINDLER FLAWED HERO OF STEVEN SPIELBERG'S MONUMENTAL FILM SCHINDLER'S LIST CAME TO POLAND A PROFITEER AND ENDED UP A RESCUER OF MANY HUNDREDS OF JEWISH LIVES HIS STORY'S ENTRY INTO THE WORLD VIA MR SPIELBERG'S JUSTLY CELEBRATED FILM CALLS TO MIND A NUMBER OF OTHER UNLIKELY RESCUERS OF WHOSE EXPLOITS LITTLE HAS YET BEEN HEARD HOWEVER MUCH THEY ARE KNOWN TO HISTORIANS I HAVE IN MIND NAMELY HITLER'S ALLIES THE ITALIANS WHOSE GOVERNMENT MINISTRIES AND ARMY AND HIGHEST POLITICAL CIRCLES MOVED HEAVEN AND EARTH TO SEE TO IT THAT NOT A SINGLE JEW WAS DEPORTED FROM ITALY THEY SCHEMED THEY PLOTTED THEY RESORTED TO THE WILIEST OF STRATEGIES AND DELAYING EFFORTS INCLUDING THE INVENTION OF THE MOST WONDERFULLY COMPLICATED CENSUSTAKING KNOWN TO MAN TO ENSURE THAT NO JEWS UNDER THEIR GOVERNANCE FELL INTO GERMAN HANDS NOT FOR NOTHING DOES THE HISTORY OF THESE PLOTS SOMETIMES READ LIKE FARCE NONE OF THIS CAN MITIGATE THE FACTS OF THE UNSPEAKABLE FATE THAT ULTIMATELY BEFELL SOME 8000 ITALIAN JEWS WHEN THE GERMANS FINALLY MARCHED IN NOR THE HARSH ANTIJEWISH LEGISLATION MUSSOLINI INTRODUCED IN 1938 STILL THERE IS NO DOUBT THAT WERE IT NOT FOR WHAT THE GERMANS SO BITTERLY DESCRIBED IN THEIR CABLES AS THE PECULIAR ITALIAN ATTITUDE OF PROTECTION TOWARD THE JEWS FAR MORE THAN THE 20 OF THE ITALIAN JEWISH POPULATION THAT WAS ANNIHILATED WOULD HAVE BEEN SHIPPED TO THEIR DEATHS UNLIKE COUNTRIES LIKE BULGARIA AND FOR A TIME AT LEAST FRANCE WHICH RESISTED DEPORTING THEIR JEWISH NATIONALS BUT WERE PREPARED TO DELIVER THEIR FOREIGNBORN JEWS THE ITALIANS REFUSED TO DEPORT JEWS PERIOD THEIR REFUSAL LIKE THAT OF HITLER'S OTHER TEMPORARY ALLY THE FINNS WAS BASED ON A FULL AWARENESS OF WHAT AWAITED ANY JEW DEPORTED FOR RESETTLEMENT BERLIN WAS NATURALLY BITTER OVER THIS INTRANSIGENCE THE TELEGRAMS FROM BUREAU 1V OF THE REICH SECURITY HEAD OFFICE COMMAND POST FOR THE FINAL SOLUTION FLEW THICK AND FAST WITH INQUIRIES AS TO WHEN ITALY COULD BE EXPECTED TO BEGIN HANDING ITS JEWS OVER THE ANSWER FROM THE ITALIANS WAS AN UNBENDING IF SILENT NEVER AND INDEED SO LONG AS FASCIST ITALY REMAINED INDEPENDENT AND UNTIL ITS OCCUPATION BY THE GERMANS IN 1943 THE ANSWER WAS THE SAME NOT ONLY WOULD THE ITALIAN GOVERNMENT REFLECTING THE POPULAR ATTITUDE OF THE CITIZENRY AT LARGE RESIST DEPORTATION ITS ARMY AND CONSULS UNDERTOOK EXTRAORDINARY EFFORTS TO RESCUE JEWS IN THEIR ZONES OF OCCUPATION AS AN AXIS PARTNER ITALY'S FORCES OCCUPIED A LARGE SECTOR OF GREECE PART OF YUGOSLAVIA AND EIGHT SECTORS OF SOUTHEASTERN FRANCE INCLUDING NICE THE ATTITUDE OF THE OCCUPYING ITALIANS WITH REGARD TO GERMANY'S EXTERMINATION PLANS FOR THE JEWS WAS MADE IMMEDIATELY CLEAR TO THE GREAT DISTRESS AND CONFUSION OF THE GERMANS AND THEIR FRENCH ALLIES FOR AS SOON AS THE VICHY POLICE IN THESE AREAS BUSIED THEMSELVES ROUNDING UP JEWS FOR ARREST AND DEPORTATION THE ITALIAN MILITARY AND FOREIGN MINISTRY DEMANDED AND OBTAINED A STOP TO THE ARRESTS AND DEPORTATIONS IN ANNECY THE FRENCH POLICE WHO HAD ROUNDED UP A TRAINLOAD OF JEWS FOR DEPORTATION FOUND THEMSELVES LOOKING AT THE BARRELS OF GUNS TRAINED ON THEM BY SOLDIERS OF THE ITALIAN FOURTH ARMY YIELDING TO THIS FORCEFUL PERSUASION THE FRENCH RELEASED THE JEWS IN SALONIKA AS ELSEWHERE AS HISTORIANS LEON POLIAKOV AND JACQUES SABILLE DOCUMENT THE ITALIANS OFFERED MORE THAN TOLERANT PROTECTION IN GREECE THE ITALIAN CONSULS AND MILITARY WITNESS TO THE BRUTAL DEPORTATIONS TAKING PLACE BEFORE THEIR EYES BUSIED THEMSELVES HANDING OUT PHONY CERTIFICATES OF ITALIAN NATIONALITY TO THE HUNTED JEWS ITALIAN OFFICERS SPIRITED JEWS AWAY TO SAFETY ON MILITARY TRAINS AND AS SURVIVORS HAVE ATTESTED THEY UNDERTOOK IN EVERY POSSIBLE WAY TO CHEER THEM ON AND ASSURE THEM OF THEIR PROTECTION IN POLAND ITALIAN TROOPS GAVE AID AND COMFORT TO THE HUNTED JEWS IN NICE THE ITALIAN COMMANDANT STATIONED CARABINIERI OUTSIDE THE JEWISH COMMUNAL CENTER AND SYNAGOGUE TO MAKE CERTAIN THAT VICHY POLICE COULD NOT ENTER TO MAKE ARRESTS ELSEWHERE IN SOUTHEASTERN FRANCE WHERE THE VICHYITE POLICE ON ORDERS FROM THE GERMANS DECREED THAT THE JEWS BE MADE TO WEAR THE YELLOW STAR THE ITALIAN GENERALS COUNTERMANDED THE ORDER IT WAS THEY ANSWERED INCONSISTENT WITH THE DIGNITY OF THE ITALIAN ARMY THAT IN AREAS OF ITS CONTROL JEWS SHOULD BE MADE TO WEAR THIS STIGMATIZING BADGE THE DIGNITY OF THE ARMY SUCH A QUAINTLY IMPROBABLE RING THE WORDS HAVE IN THE CONTEXT OF THE UNRIVALED HORRORS BEING INFLICTED DAILY BY THE ARMIES OF THE REICH AND THEIR ACCOMPLICES THEY WERE FLAWED HEROES OF A KIND DIFFERENT FROM SCHINDLER THESE SERVANTS OF MUSSOLINI'S FASCIST STATE IT HAS BEEN ARGUED THAT THERE WERE ELEMENTS OF POLITICAL CONCERN IN ROME'S REFUSAL TO COOPERATE IN THE MURDER OF THE JEWS BUT NO ONE CAN ATTRIBUTE ANYTHING BUT HUMANITARIAN REVULSION AT THE GERMANS' POLICIES IN THE ACTIVITIES OF THE ITALIANS WHO STROVE SO ASSIDUOUSLY TO SAVE LIVES IN THE TERRITORIES THEY OCCUPIED WHAT THERE WAS IN THE CHARACTER OF THE ITALIANS THAT MADE THEIR RESISTANCE TO MASS MURDER SO IMPLACABLE SO DIFFERENT FROM THAT OF THE VICHYITE FRENCH IS A QUESTION WE MAY PONDERAND ONE FOR WHOSE EXISTENCE WE CAN BE GRATEFUL MS RABINOWITZ A JOURNAL EDITORIAL WRITER AND TELEVISION CRITIC IS CURRENTLY PREPARING A BOOK ON THIS SUBJECT SEE RELATED LETTER LETTERS TO THE EDITOR ALL DENMARK CONSPIRED TO SAVE ITS JEWS WSJ JAN 4 1994 SEE RELATED LETTERS LETTERS TO THE EDITOR HOW HIMMLER'S DOCTOR SAVED THE LIVES OF JEWS WSJ JAN 17 1994 9312220085 9401040026 YY94 MM01 9401140131 931215 NO SINGLE REGULATOR FOR BANKS BY ALAN GREENSPAN THE FEDERAL BANK REGULATORY SYSTEM HAS NOT BEEN FUNCTIONING EFFICIENTLY IN RECENT YEARS THE BANKING COMMUNITY IS UNDERSTANDABLY CONCERNED ABOUT DUPLICATIVE EXAMINATIONS AND OVERLAPPING REGULATIONS ONE SUSPECTS THAT IN LEGISLATIVE AND REGULATORY REACTION TO BANKING SYSTEM PROBLEMS THAT BECAME EVIDENT IN THE LATER 1980S WE MAY HAVE OVERDOSED THE SYSTEM WE NOW HAVE MORE EXAMINERS AND GREATER COMPLEXITY IN RULEMAKING THAN NEEDED WITH THE PROSPECT OF INCONSISTENCY IN OVERSIGHT AND PERSISTING DEMANDS ON MANAGEMENT TIME AND ENERGY TO SATISFY MULTITUDES OF EXAMINERS WE NEED TO ADDRESS THESE PROBLEMS THE ADMINISTRATION HAS PROPOSED A SINGLE FEDERAL BANK REGULATOR THAT WOULD TAKE OVER THE CURRENT REGULATORY ROLES OF THE FEDERAL RESERVE THE COMPTROLLER OF THE CURRENCY THE FEDERAL DEPOSIT INSURANCE CORP AND THE OFFICE OF THRIFT SUPERVISION BUT THERE IS A SERIOUS QUESTION OF WHETHER THIS IS THE APPROPRIATE SOLUTION WHILE A SINGLE REGULATOR WOULD DEAL WITH DUPLICATION INCONSISTENCY AND OVERLAP IT WOULD ALSO HAVE IMPORTANT AND EXCEPTIONALLY SERIOUS DRAWBACKS FIRST IT WOULD REMOVE THE FEDERAL RESERVE FROM DIRECT HANDSON INVOLVEMENT IN SUPERVISION AND REGULATION WITH BAD EFFECTS ON PUBLIC POLICY IN A NUMBER OF AREAS MOST ESPECIALLY IN OUR ABILITY TO ANTICIPATE AND COPE WITH POTENTIAL SYSTEMIC FINANCIAL PROBLEMS SECOND A MONOLITHIC REGULATOR WOULD BE LESS EFFECTIVE THAN TWO OR MORE REGULATORS IN PROVIDING A NECESSARY SET OF CHECKS AND BALANCES TO THE OVERSIGHT OF DEPOSITORY INSTITUTIONS SINCE ITS INCEPTION THE FEDERAL RESERVE HAS BEEN AT THE NEXUS OF MONETARY POLICY THE PAYMENTS SYSTEM AND BANK SUPERVISION AND REGULATION TO CARRY OUT ITS RESPONSIBILITIES THE FED HAS BEEN REQUIRED OVER THE DECADES TO BUILD UP AN UNPARALLELED KNOWLEDGE OF THE INTRICACIES OF THE AMERICAN AND INDEED THE WORLD FINANCIAL SYSTEM OUR EXPERTISE IS THE RESULT OF DEALING CONSTANTLY AND IN DETAIL WITH CHANGING FINANCIAL MARKETS AND INSTITUTIONS AND THEIR RELATIONSHIP WITH EACH OTHER AND WITH THE ECONOMY IT COMES AS WELL FROM CONTINUING INTERACTIONS WITH CENTRAL BANKS AND FINANCIAL INSTITUTIONS ABROAD OUR SUPERVISORY AND REGULATORY ACTIVITIES HAVE BEEN AN INTEGRAL AND INDISPENSABLE ASPECT OF THIS PROCESS CONTINUING INTERACTIONS WITH BANKING ORGANIZATIONS BOTH LARGE AND SMALL ARE ONE OF THE KEY WAYS WE HAVE BUILT DETAILED INSIGHTS INTO HOW OUR SYSTEM FUNCTIONS WE APPRECIATE THE ADMINISTRATION'S ENDEAVOR TO ADDRESS SOME OF OUR CONCERNS BUT ITS PROPOSAL MISSES A FUNDAMENTAL POINT IT IS UNREALISTIC AND UNDULY HOPEFUL TO BELIEVE THAT THE KNOWLEDGE AND EXPERTISE THAT THE FEDERAL RESERVE NEEDS TO DO ITS JOB PROPERLY CAN BE GAINED FROM STUDYING THE EXAM REPORTS OF ANOTHER AGENCY HAVING NARROW AUTHORITY TO EXAMINE THE PAYMENTS SYSTEM OR HAVING REPRESENTATION ON THE BOARD OF A MONOLITHIC REGULATORY INSTITUTION UNDER SUCH A STRUCTURE THE FEDERAL RESERVE'S ESSENTIAL KNOWLEDGE BASE WOULD ATROPHY WITH OUR DELIBERATIONS BECOMING INCREASINGLY ACADEMIC AND OUR CENTRAL BANK RESEMBLING MORE AN IVORY TOWER THAN AN INSTITUTION NECESSARILY INVOLVED WITH THE DAYTODAY ACTIVITIES OF OUR ECONOMIC AND FINANCIAL SYSTEM KNOWLEDGE OF EXCEPTIONAL DEPTH AND BREADTH HAS BECOME INCREASINGLY IMPORTANT IN DEALING WITH THE US FINANCIAL SYSTEM A NARROW FOCUS ON DEPOSITORY INSTITUTIONS IN THE US IS NOT SUFFICIENT IN A WORLD IN WHICH MARKETS ARE BECOMING MORE INTERCONNECTED FINANCIAL INSTRUMENTS ARE BECOMING MORE COMPLEX DISTINCTIONS BETWEEN BANKS AND OTHER FINANCIAL INTERMEDIARIES ARE BLURRING INTEGRATION OF ECONOMIES AND FINANCIAL MARKETS INTERNATIONALLY IS INCREASING OUR FINANCIAL SYSTEM FREE MARKET ORIENTED AND CHARACTERIZED BY INNOVATION AND RAPID CHANGE IMPARTS SIGNIFICANT BENEFITS TO OUR ECONOMY BUT ONE OF THE CONSEQUENCES OF SUCH A DYNAMIC SYSTEM IS THAT IT IS SUBJECT TO EPISODES OF STRESS IN RECENT YEARS WE HAVE EXPERIENCED A SUBSTANTIAL STOCK MARKET CRASH THE DEFAULT OF THE MAJOR PLAYER IN THE JUNK BOND MARKET THE S&L FAILURES AND OTHER PROBLEMS IN THESE SITUATIONS THE FEDERAL RESERVE PROVIDES LIQUIDITY IF NECESSARY AND CONSULTS CONTINUALLY WITH DEPOSITORY INSTITUTIONS TO CONTAIN THE SECONDARY CONSEQUENCES OF THE PROBLEM MOST OF OUR EFFORTS TO SAFEGUARD FINANCIAL STABILITY HOWEVER ARE DIRECTED NOT AT CRISIS MANAGEMENT BUT AT FENDING OFF FINANCIAL SECTOR PROBLEMS BEFORE THEY ERUPT INTO FULLBLOWN CRISIS FINANCIAL CRISES ARE RARELY PREDICTABLE THE FED'S ABILITY TO RESPOND EXPEDITIOUSLY TO ANY PARTICULAR CRISIS DEPENDS ON THE EXPERIENCE AND EXPERTISE THAT WE HAVE ACCUMULATED OVER THE YEARS ABOUT THE SPECIFICS OF OUR SYSTEM AND OUR AUTHORITY TO ACT ON THAT KNOWLEDGE IN RESPONDING TO CRISES OR HEADING OFF POTENTIAL CRISES WE CONTINUALLY RELATE OUR SUPERVISORBASED KNOWLEDGE OF HOW INDIVIDUAL BANKS WORK TO OUR UNDERSTANDING OF THE FINANCIAL SYSTEM AS A WHOLE WE GAIN INSIGHT BY HAVING A BROAD SAMPLE OF BANKS SUBJECT TO OUR SUPERVISION AND THROUGH OUR AUTHORITY OVER BANK HOLDING COMPANIES WE EMPLOY OUR ACCUMULATED EXPERIENCE AND EXPERTISE IN LARGE MEASURE TO WORK WITH OTHER REGULATORS HERE AND ABROAD AND WITH PRIVATE PARTIES TO BUILD STRONG INSTITUTIONAL STRUCTURES RESILIENT TO THE INEVITABLE STRAINS THAT HIT FINANCIAL SYSTEMS WE ALSO DRAW ON OUR BASE OF KNOWLEDGE AND INSIGHTS WHEN SYSTEMIC BREAKDOWN THREATENS SUCH A SITUATION INVARIABLY CREATES FEAR AND UNCERTAINTY IN THE FINANCIAL MARKETS FEAR OF COUNTERPARTY RISK ESCALATES AND ORIGINATORS OF PAYMENTS BECOME HESITANT AND DELAY TRANSFERS IT IS IMPORTANT THAT A REGULATORY AUTHORITY FULLY FAMILIAR WITH THE DYNAMIC INTERNATIONAL ECONOMIC AND FINANCIAL FORCES BE AVAILABLE TO COUNSEL AND URGE RATIONAL RESPONSES AND AS A LAST RESORT PROVIDE LIQUIDITY IF REGULATORY AUTHORITY IS VESTED IN A SINGLE AGENCY AND LITTLE IN THE CENTRAL BANK OUR NATION'S ABILITY TO FORESTALL OR TO RESPOND EFFICIENTLY AND EFFECTIVELY TO A CRISIS WOULD SURELY BE IMPAIRED WHILE CRISES ARISE ONLY SPORADICALLY THE FEDERAL RESERVE IS INVOLVED IN MONETARY POLICY CONTINUOUSLY IN THIS AREA TOO THE INSIGHTS DERIVED FROM OUR SUPERVISION AND REGULATION ARE IMPORTANT INPUTS TO THE POLICY PROCESS CERTAINLY A MAJOR FACTOR IN OUR DECISION TO EASE INTEREST RATES FROM 1989 ON WAS OUR INCREASING AWARENESS IMPORTANTLY GAINED THROUGH THE EXAMINATION PROCESS THAT BANKS WERE RAPIDLY TIGHTENING THEIR LENDING TERMS AND STANDARDS WE WERE NEVER ABLE TO OFFSET FULLY THE LENDING TRAUMA THAT LED TO THE CREDIT CRUNCH OF THE EARLY 1990S BUT WE CLEARLY CONTAINED ITS DELETERIOUS EFFECTS IN A SIGNIFICANT WAY WITHOUT OUR HANDSON BANK SUPERVISORY ACTIVITIES WE MIGHT NOT HAVE BEEN AWARE OF THE SERIOUSNESS OF THIS PROBLEM UNTIL LATER THE CREDIT CRUNCH EXPERIENCE ALSO ILLUSTRATES HOW FEDERAL RESERVE INVOLVEMENT IN SUPERVISION AND REGULATION CAN IMPROVE THOSE FUNCTIONS AS WELL OUR OWN EXPERIENCE IN THE BANKING SYSTEM AND THE EXPERTISE OF OUR INHOUSE EXAMINERS WERE KEY ELEMENTS IN ENABLING US TO ANALYZE THIS PHENOMENON AND WORK CLOSELY WITH OTHER AGENCIES TO ADJUST SUPERVISORY POLICIES TO ALLEVIATE IT WHILE PRESERVING SAFETY AND SOUNDNESS A CENTRAL BANK BRINGS A UNIQUE AND INVALUABLE PERSPECTIVE TO REGULATION IT IS FAR BETTER SITUATED THAN A NARROWLY FOCUSED REGULATORY AGENCY TO SEE HOW BANK REGULATION AND SUPERVISION RELATE TO THE STRENGTH OF THE PAYMENTS SYSTEM THE STABILITY OF FINANCIAL MARKETS AND THE HEALTH OF THE ECONOMY TO SUMMARIZE THE ABSENCE OF HANDSON EXPERIENCE IN THE ACTIVITIES AND OPERATIONS OF BANKS WILL REDUCE SIGNIFICANTLY THE FED'S EFFECTIVENESS WE MUST KNOW HOW THE SYSTEM WORKS IN A PRACTICAL DETAILED WAY AND WHERE THE VULNERABILITIES MAY LIE REPORTS FROM ANOTHER AGENCY OR FED REPRESENTATION ON THE OTHER AGENCY'S BOARD DO NOT PROVIDE SUCH EXPERIENCE ACCESS TO WRITTEN SUPERVISORY REPORTS AT ANOTHER AGENCY MIGHT BE USEFUL FOR ASSESSING A SPECIFIC PROBLEM IN A SPECIFIC BANK BUT IT WOULD ADD LITTLE TO THE FED'S CAPABILITIES IN ADDRESSING FINANCIAL CRISES THESE CONCERNS OF COURSE WOULD NOT EXIST IF THE FED WERE THE SINGLE REGULATOR BUT WE AT THE FED WOULD OPPOSE THAT SOLUTION AS WELL WHILE A MONOPOLY BANK REGULATORY AGENCY CAN ENFORCE UNIFORMITY IN BANK EXAMINATION AND REGULATION IT WOULD DO SO AT GREAT COST TO THE BROADER EFFICIENCY AND FLEXIBILITY OF OUR FINANCIAL SYSTEM BANKING SUPERVISION AND REGULATION CAN ONLY BENEFIT FROM THE VARIETY OF VIEWPOINTS AND CHECKS AND BALANCES OF A SYSTEM OF MORE THAN ONE REGULATORY AUTHORITY A SYSTEM IN WHICH BANKS HAVE CHOICES AND IN WHICH REGULATIONS RESULT FROM THE GIVE AND TAKE INVOLVING MORE THAN ONE AGENCY STANDS A BETTER CHANCE OF AVOIDING THE EXTREMES OF SUPERVISION THE HISTORIC PURPOSE OF BANKING IS TO TAKE PRUDENT RISKS THROUGH THE EXTENSION OF LOANS TO RISKTAKING BUSINESSES SUCH LOANS ARE THE INDISPENSABLE SOURCE OF FINANCING FOR SMALL BUSINESS AN ESSENTIAL ENGINE OF JOB CREATION A SINGLE REGULATOR CHARGED WITH RESPONSIBILITY FOR SAFETY AND SOUNDNESS IS LIKELY TO HAVE A TENDENCY TO SUPPRESS RISK TAKING A SYSTEM OF MULTIPLE SUPERVISORS AND REGULATORS CREATES CHECKS ON THIS PROPENSITY MOST IMPORTANT IN THIS REGARD IS THE CONTRIBUTION OF THE DUAL BANKING SYSTEM OF FEDERAL AND STATE CHARTERS TO THE PLURALISM OF OUR CURRENT REGULATORY STRUCTURE AND ITS CHECKS AND BALANCES HOWEVER CONSOLIDATION AT THE FEDERAL LEVEL IS LIKELY TO ROB THE CHOICE OF CHARTER OF ANY REAL SIGNIFICANCE NO LONGER WILL THE AVAILABILITY OF A STATE CHARTER CARRY WITH IT THE CHOICE OF FEDERAL REGULATOR A MONOLITHIC FEDERAL SUPERVISOR WHICH ALSO ISSUES FEDERAL CHARTERS WILL HAVE LITTLE INCENTIVE TO ACCOMMODATE DIVERSE STATE STANDARDS OR TO MAINTAIN THE VALUE OF STATE CHARTERS THERE ARE INNUMERABLE WAYS SHORT OF THE CREATION OF A SINGLE AGENCY TO ADDRESS THE PROBLEMS IN THE CURRENT SYSTEM THE CRUX OF THE ISSUE IS DUPLICATIVE EXAMINATIONS OF BANKS AND REGULATORY OVERLAP FOR A GIVEN MULTIBANK HOLDING COMPANY ORGANIZATION WHERE NO ONE REGULATOR HAS FULL AUTHORITY FOR THE ENTIRE BANKING ORGANIZATION THIS PROBLEM COULD BE ELIMINATED BY A REGULATORY SYSTEM THAT MAINTAINED MORE THAN ONE FEDERAL REGULATOR BUT PROVIDED THAT IN GENERAL ONLY ONE OF THOSE REGULATORS EXAMINED EACH BANKING ORGANIZATION FROM TOP TO BOTTOM IN THE PROCESS OF SIMPLIFYING EXAMINATION WE WOULD ALSO ESTABLISH MECHANISMS TO RATIONALIZE REGULATION ACROSS ORGANIZATIONS AND MINIMIZE ANY REMAINING PROBLEMS FROM OVERLAP UNDOUBTEDLY THERE ARE OTHER APPROACHES THAT PRESERVE CHOICE AND RETAIN A MAJOR ROLE FOR THE CENTRAL BANK THE CURRENT SYSTEM OF BANK REGULATION AND SUPERVISION DOES NEED ADJUSTING BUT IT IS ESSENTIAL THAT PROPOSALS TO ELIMINATE OVERLAP AND PROMOTE EFFICIENCY DO NOT ENDANGER NATIONAL ECONOMIC OBJECTIVES OF FAR MORE IMPORTANCE OUR BANK REGULATORY STRUCTURE MUST FIND AN APPROPRIATE AND CONSISTENT BALANCE OVER TIME BETWEEN RISKTAKING AND SAFETY AND SOUNDNESS AND IT MUST BE STRUCTURED TO HELP MAINTAIN THE STABLE FINANCIAL SYSTEM INDISPENSABLE TO A PROSPEROUS FUTURE THE PROPOSED SINGLE FEDERAL REGULATOR FALLS SHORT IN BOTH OF THESE KEY AREAS MR GREENSPAN IS CHAIRMAN OF THE FEDERAL RESERVE SEE RELATED LETTER LETTERS TO THE EDITOR STABLE MONEY IS A MORAL COMMITMENT WSJ JAN 14 1994 9312150007 YY94 MM01 9401140130 931229 LEISURE & ARTS CRITIQUE FRENCH SPANISH KILL ART WITH KINDNESS BY RAYMOND SOKOLOV GIVE THEM AN INCH AND THEY'LL TAKE A KILOMETER THAT'S EUROPEANS FOR YOU JUST A FEW DAYS AFTER THE US GATT NEGOTIATORS CAVED IN ON THE CULTURAL EXCEPTION AND LET EUROPE CONTINUE PROTECTING ITS HOMEGROWN FILM AND TELEVISION INDUSTRIES THOSE OLD WORLDERS HAVE UNASHAMEDLY TIGHTENED THE NOOSE WITH EVEN MORE RESTRICTIONS AGAINST WILDLY POPULAR YANKEE JUNK ART FRANCE ANNOUNCED IT WOULD FINE RADIO STATIONS IF THEY DIDN'T PLAY FRENCH SONGS AT LEAST 40 OF THE TIME SPAIN SAID IT WOULD NOW COMPEL MOVIE EXHIBITORS TO DEVOTE ONE DAY TO A EUROPEAN FILM FOR EVERY TWO DAYS THEY SPENT SCREENING AMERICAN MOVIES AND WOULD LIMIT THE RIGHT TO DUB US FILMS THE DIRECTOR OF EUROPE NO 1 AN INDEPENDENT IE NONGOVERNMENT IE FORPROFIT STATION IN FRANCE IMMEDIATELY PROTESTED THE FRENCH EDICT SAYING THE PROBLEM WASN'T TOO MANY AMERICAN SONGS BUT TOO FEW GOOD FRENCH ONES ALL 1807 MOVIE THEATERS IN SPAIN CLOSED FOR A DAY TO PROTEST THE NEW REGULATIONS WHICH THEY ASSERT THREATEN THEIR SURVIVAL AS BUSINESSES BY RATCHETING UP RESTRICTIONS ON AUDIOVISUAL IMPORTS FRANCE AND SPAIN REMIND US THAT THE SOCALLED CULTURAL EXCEPTION MAY HAVE NOBLE AIMS BUT IT PAYS FOR ITSELF BY SOAKING ORDINARY CULTURAL CONSUMERS AND THE BUSINESSMEN WHO NORMALLY OFFER LOCAL ART PROLES WHAT THEY MANIFESTLY WANT US POPULAR CULTURE TAKE THE FRENCH SYSTEM OF MOVIE SUBSIDY IT IS NOT AN ITEM IN THE BUDGET OF THE MINISTRY OF CULTURE NOT A FRANC COMES OUT OF THE FRENCH TREASURY THAT KIND OF DIRECT SUBSIDY WOULD HAVE TO BE SCRUTINIZED IN A POLITICAL PROCESS ULTIMATELY TEMPERED BY DEMOCRATIC POPULAR FEELING INSTEAD EVERY TIME LOUISETTE AND GUSTAVE GO TO ANY FILM THEY PAY WHAT AMOUNTS TO A USER TAX WHICH GOES TO SUPPORT NATIVE FILM PRODUCTION SINCE AMERICAN FILMS DRAW THE OVERWHELMING MAJORITY OF ALL FRENCH FILMGOERS FRENCH FANS OF HOLLYWOOD FILMS ARE FORCED TO PAY ALMOST ALL OF THE TICKET TAX RECEIPTS USED TO CREATE FILMS THEY DON'T WANT TO SEE SINCE A MUCH SMALLER BUT STILL SIGNIFICANT AUDIENCE FOR FRENCHMADE FILMS DOES EXIST IN FRANCE THIS ARRANGEMENT MAY BE UNFAIR BUT IT DOES NOT DIRECTLY MENACE THE SURVIVAL OF THE MOVIE BUSINESS IN FRANCE MARIEYVONNE AND THIERRY CAN STILL SEE JURASSIC PARK IF THEY WANT THE NEW SPANISH SYSTEM HOWEVER THREATENS EVEN THIS BASIC FREEDOM A DISTRIBUTOR'S LEGAL ABILITY TO PRESENT A DUBBED ENGLISHLANGUAGE FILM IS CRUCIAL TO HIS FINANCIAL SUCCESS IN A MARKET WHERE 80 OF THE GATE GOES TO HOLLYWOOD FILMS IF SPANIARDS DECIDE TO STAY HOME BECAUSE THEY ARE BORED WITH THEIR HOMEGROWN FILMS THEY WILL STRANGLE THE IMPORT MARKET ALONG WITH THE DOMESTIC THIS IS NOT A FARFETCHED DANGER THE NEW PROGRAM PROMISES TO SHRINK THE NATIONAL OUTLAY FOR FILM TICKETS BY A HUGE AMOUNT UNLESS SPANIARDS SUDDENLY DEVELOP A TASTE FOR SPANISH FILMS TERRIFIED SPANISH THEATER OWNERS MUST BE FERVENTLY HOPING FOR JUST SUCH A RADICAL SHIFT IN NATIONAL HABITS DITTO FRENCH RADIO STATION OWNERS IT MAY EVEN BE THAT FRENCH AND SPANISH FILM AND POP MUSIC FANS WILL MAKE AN EFFECTIVE PROTEST OVER THESE MANDARIN INTRUSIONS INTO THEIR FREEDOM TO WATCH AND LISTEN OR THERE MAY BE A SUDDEN RENAISSANCE IN FRENCH AND SPANISH POPULAR CULTURE THAT CAN COMPETE DIRECTLY WITH HOLLYWOOD AND TIN PAN ALLEY REALISTICALLY THOUGH NEITHER AN OVERNIGHT TURNAROUND IN LOCAL CREATIVITY NOR FUNDAMENTAL CHANGES IN EUROPEAN POPULAR TASTE NOR MASS PROTESTS IN FRONT OF CULTURE MINISTRIES BY AGGRIEVED LOVERS OF HOLLYWOOD FILMS AND US ROCK SEEM LIKELY TO HAPPEN SO ONLY ONE VIABLE ALTERNATIVE PRESENTS ITSELF OBLIGATORY CULTURAL PARTICIPATION IN ORDER TO MAKE THE NEW SYSTEMS WORK FRENCH AND SPANISH CITIZENS WILL BE REQUIRED TO LOG IN REGULARLY AT DOMESTICALLY MADE MOVIES AND TO PUNCH IN ELECTRONIC INTERACTIVE PROOF OF THE TIME THEY'VE SPENT LISTENING TO SPECIAL NATIVEPRODUCED MUSIC RADIO ONLY AFTER THEY HAVE COMPLETED THEIR DUTY SAY TWO HOURS A WEEK WITH THE RADIO TUNED TO CHAUVINIST STATIONS AND ONE NATIONALHERITAGE MOVIE A WEEK CAN THEY ATTEND AN IMPORTED FILM OR TUNE THEIR DIAL TO AN ECLECTIC PROGRAM OF COURSE THERE WOULD BE EXEMPTIONS FOR PEOPLE WITH FAMILY INCOMES BELOW THE POVERTY LINE OR FOR MEMBERS OF PROFESSIONS CONNECTED WITH NATIONAL CULTURE THEY ALREADY GIVE AT THE OFFICE PERHAPS ENLIGHTENED GOVERNMENTS WILL ALSO CONSIDER ALLOWING CREDIT TOWARD THE CULTURAL OBLIGATION FOR ATTENDANCE AT NATIONALHERITAGE EVENTS OUTSIDE CINEMA AND POP MUSIC FOR EXAMPLE A FRENCH ROCK LOVER WHO DIDN'T WANT TO PUT IN TWO HOURS LISTENING TO GALLIC ACCORDION MUSIC OR SHEPHERD SONGS OF THE AUVERGNE COULD ATTEND A PERFORMANCE OF A CLASSIC PLAY BY RACINE OR LISTEN TO A RECORDING OF A SPEECH BY PRESIDENT MITTERAND IN SPAIN ATTENDANCE AT BULLFIGHTS OR A FLAMENCO EVENING WOULD BE THE EQUIVALENT OF A NIGHT AT A HISPANOPHONE MOVIE THOSE TOO BUSY TO ADOPT SUCH ALTERNATIVE SERVICE OPTIONS COULD HIRE SURROGATE ATTENDEES TO STAND IN FOR THEM THIS WOULD HAVE AN IMMEDIATELY SALUBRIOUS EFFECT ON UNEMPLOYMENT AND HOMELESSNESS INSTEAD OF DEGRADING THE QUALITY OF LIFE IN THE STREETS OF PARIS AND MADRID THE ECONOMICALLY CHALLENGED SECTOR OF THE POPULATION WILL BE GAINFULLY EMPLOYED ATTENDING FILMS AND CONCERTS THAT MORE PROSPEROUS MEMBERS OF SOCIETY WILL PAY GOOD MONEY TO AVOID SEE RELATED LETTER LETTERS TO THE EDITOR YOU CALL IT CULTURE' WE SAY IT'S PRODUCT' WSJ JAN 14 1994 9312290072 YY94 MM01 9401140127 931231 POTOMAC WATCH JOHN & BILL ANITA & GENNIFER SEX & STANDARDS BY PAUL A GIGOT THE COMMITTEE FOUND EXAMPLES OF INDISCREET CONDUCT TOWARD WOMEN WHICH CALL INTO QUESTION HIS JUDGMENT AND HIS ABILITY TO SET AN APPROPRIATE EXAMPLE HOW DO YOU DEFEND SOMETHING LIKE THIS HOW DO YOU PROVE SOMETHING LIKE THIS DIDN'T HAPPEN THE REPORTS OF PRESIDENT CLINTON'S PHILANDERING HAVE FADED INTO THE HOLIDAY MOOD OF FORGIVENESS BUT BEFORE THEY'RE FORGOTTEN SOMETHING SHOULD BE SAID ABOUT ETHICS AND DOUBLE STANDARDS FOR SEN NUNN ISN'T THE ONLY ONE STRUCK BY SUDDEN PANGS OF CONSCIENCE THERE IS LIZ SMITH WHO WRITES A GOSSIP COLUMN BUT SOMEHOW FINDS THE ARKANSAS TROOPER CHARGES TOO GOSSIPY THE NEW YORKER'S SIDNEY BLUMENTHAL WHO WASN'T ABOVE ASSAULTING GEORGE BUSH'S WAR RECORD IS NOW APPALLED BY POLITICAL JOURNALISM A RAJAH FROM THE NEW YORK TIMES AVERS THAT HE DOESN'T WORK FOR A SUPERMARKET TABLOID THIS IS THE SAME TIMES THAT CELEBRATED KITTY KELLEY'S INSINUATIONS ABOUT NANCY REAGAN AND FRANK SINATRA ON PAGE ONE THE POINT HERE ISN'T MERELY HYPOCRISY HOWEVER REDOLENT IT CONCERNS WHAT THE STANDARD FOR POLITICAL ETHICS HAS BECOME AND OUGHT TO BE THE CLINTONS ARE HARDLY THE FIRST POLITICIANS TO HAVE THEIR PERSONAL LIVES PUBLICLY VETTED IF THIS IS SO FAR BEYOND THE PALE NOW WHAT ARE WE TO MAKE OF WHAT HAPPENED TO JOHN TOWER CHUCK ROBB CLARENCE THOMAS OR IN THE LATEST EXAMPLE OREGON REPUBLICAN BOB PACKWOOD WHO SET THIS STANDARD ANYWAY IN THIS REGARD IT'S ILLUMINATING TO COMPARE THESE PAST CASES WITH THE ARGUMENTS NOW BEING USED TO DISQUALIFY THE TROOPER STORIES THE STANDARDS HAVE SUDDENLY SHIFTED FOR EXAMPLE ALTHOUGH THE LOS ANGELES TIMES AND AMERICAN SPECTATOR QUOTE TWO TROOPERS ON THE RECORD AND ANOTHER TWO OFF THEIR CLAIMS ARE SAID TO LACK CORROBORATION BUT THIS IS MORE ONTHERECORD PROOF THAN WAS EVER MUSTERED AGAINST JOHN TOWER HE WAS GUILTY ONLY OF APPEARANCES AND PERCEPTIONS IT IS SAID THAT THE TROOPERS HAVE SUSPECT MOTIVES BECAUSE THEY ARE REPRESENTED BY CLINTON ENEMY CLIFF JACKSON A FAIR POINT BUT AT LEAST MR JACKSON IS ON THE RECORD THE SENATE STAFFERS WHO COAXED AND LEAKED ANITA HILL INTO TESTIFYING WERE SILENT CONSPIRATORS KNOWN TO BUT UNREPORTED BY THE MAINSTREAM MEDIA THE TROOPERS ARE ALSO DOUBTED FOR WANTING TO PURSUE A BOOK CONTRACT BUT MS HILL HAS JUST SIGNED TO WRITE TWO BOOKS HERSELF HER CELEBRITY HAS MADE HER A HIT ON THE LUCRATIVE LECTURE CIRCUIT AS WELL AS A POLITICAL HERO WHO WAS HAILED AT AN AMERICAN BAR ASSOCIATION MEETING LAST YEAR BY NONE OTHER THAN HILLARY RODHAM CLINTON OUR BORNAGAIN MORALISTS ALSO ASSERT THAT NOT ONE WOMAN HAS COME FORWARD BUT OF COURSE GENNIFER FLOWERS DID AS DOUGLAS FRANTZ OF THE LOS ANGELES TIMES SAID ON CNN'S RELIABLE SOURCES ALL FOUR TROOPERS WITH WHOM WE SPOKE EXTENSIVELY CORROBORATED GENNIFER FLOWERS' ALLEGATIONS MS FLOWERS NOW HAS MORE CORROBORATION THAN ANITA HILL EVER DID THE PRESIDENT'S DEFENDERS DO HAVE A POINT THAT AMERICANS MAY NOT CARE ABOUT ANY OF THIS NOW AT LEAST NOT THE ADULTERY BUT IT'S NOTABLE THAT THE ABUSE OF OFFICE ALLEGED BY THE TROOPERS STATE RESOURCES FOR PERSONAL USE IS WHAT KAY BAILEY HUTCHISON HAS BEEN INDICTED FOR IN TEXAS AND REMEMBER HOW MR PACKWOOD WAS ASSAILED FOR INVESTIGATING THE BACKGROUNDS OF HIS ACCUSERS CLINTON OPERATIVE BETSEY WRIGHT HAS GONE FURTHER ONCE AGAIN CONTACTING PRIVATE EYE JACK PALLADINO TO DEAL WITH WHAT SHE ONCE CALLED BIMBO ERUPTIONS PART OF THE DOUBLE STANDARD AT WORK HERE IS CULTURAL THE ELITES IN THE PRESS AND POLITICS WILL BELIEVE A LAW PROFESSOR WHO ATTENDED THEIR SCHOOLS BUT THEY ARE SKEPTICAL OF REDNECK TROOPERS OR A CABARET BLONDE LIBERALS ALSO THINK ADULTERY IS LESS HEINOUS THAN SEXUAL HARASSMENT TO PUT IT ANOTHER WAY IF YOU MAKE A PASS AND SUCCEED YOU GET A MORALITY BYE BUT IF YOU'RE AN OAF AND A BOOR LIKE BOB PACKWOOD EVEN IF YOU STOP WHEN THE WOMEN RESIST YOU DESERVE TO BE DRIVEN OUT OF THE SENATE THE DEEPEST MOTIVE IS POLITICAL THE USE OF PERSONAL ETHICS AS A WEAPON LIBERALS SHUT OUT OF THE PRESIDENCY FOR 25 YEARS CARTER WASN'T REALLY THEIRS ESTABLISHED THIS STANDARD AS A WAY TO ATTACK CONSERVATIVES WHO WORKED FOR POPULAR PRESIDENTS THE PRESS UNLEASHED BY WATERGATE WAS A WILLING COLLABORATOR IT'S TRUE THAT A FEW DEMOCRATS HAVE BEEN SACRIFICED ALONG THE WAY GARY HART BUT THE MOST FREQUENT VICTIMS HAVE BEEN REPUBLICANS ESPECIALLY CONSERVATIVES YET NOW THAT ONE OF THEIR OWN IS IN THE WHITE HOUSE LIBERALS PROFESS TO BE SHOCKED SHOCKED THAT THE SAME STANDARDS MIGHT APPLY TO THEM IF LIBERALS WANT TO PUT THEIR ETHICS GENIE BACK IN THE BOTTLE THERE ARE CERTAINLY WAYS THEY CAN SHOW A NEW YEAR'S RESOLUTION THEY CAN FORGIVE BOB PACKWOOD HIS BOORISHNESS FROM AN ERA THAT HAD DIFFERENT SEXUAL STANDARDS THEN THEY CAN DISMISS THE CHARGES AGAINST SEN HUTCHISON THE NEW YORKER WHICH HAS BECOME THE AMERICAN SPECTATOR OF THE LEFT CAN STOP HARASSING CLARENCE THOMAS OTHERWISE ALL OF THIS HIGHMINDEDNESS ABOUT BILL CLINTON'S PRIVATE LIFE IS SO MUCH POLITICAL SPIN SEE RELATED LETTERS LETTERS TO THE EDITOR WHITHER TRUTH AND JUSTICE WSJ JAN 14 1994 9312310036 YY94 MM01 9401130099 931214 LAW LEGAL BEAT STATE COURTS SPLIT ON ALLOWING LAW FIRMS TO RESTRICT EXPARTNERS BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL IN A DECISION REFLECTING THE GROWTH OF LAW AS A HIGHLY COMPETITIVE BUSINESS THE CALIFORNIA SUPREME COURT RULED THAT LAW FIRMS CAN INCLUDE ANTICOMPETITION CLAUSES IN THEIR PARTNERSHIP AGREEMENTS THE DECISION IS ESPECIALLY NOTEWORTHY BECAUSE THE CALIFORNIA RULING CONTRADICTS A 1989 DECISION BY NEW YORK'S HIGH COURT THAT FOUND THAT SUCH CLAUSES ARE NOT PERMISSIBLE FOR LARGE LAW FIRMS WITH OFFICES IN CALIFORNIA AND NEW YORK THE CONFLICTING RULINGS MAY PROVE TO BE PARTICULARLY TROUBLESOME AT ISSUE ARE PAYMENTS MADE TO DEPARTING PARTNERS FOR UNBILLED WORK AND WORK IN PROGRESS WHEN THEY LEAVE THEIR LAW FIRMS IN AN EFFORT TO DETER PARTNERS FROM LEAVING SOME LAW FIRMS HAVE WITHHELD THOSE PAYMENTS WHICH CAN RUN TO HUNDREDS OF THOUSANDS OF DOLLARS IF THE PARTNERS SET UP SHOP NEARBY IN ITS 1989 RULING INVOLVING THE LAW FIRM THEN KNOWN AS LORD DAY & LORD THE NEW YORK COURT OF APPEALS DETERMINED THAT LAW FIRMS CANNOT WITHHOLD PROFITS FROM PARTNERS WHO DEFECT THE COURT SAID THAT THE RULE UNFAIRLY RESTRICTS A LAWYER'S RIGHT TO PRACTICE WHERE HE PLEASES THE COURT ALSO SAID THAT THE ANTICOMPETITION PROVISIONS BY MAKING IT HARD FOR AN ATTORNEY TO CONTINUE REPRESENTING A CLIENT AFTER LEAVING A FIRM COULD INTERFERE WITH A CLIENT'S RIGHT TO CHOOSE A LAWYER SEVERAL STATES INCLUDING NEW JERSEY HAVE SINCE FOLLOWED THE NEW YORK HIGH COURT'S RULING THE CALIFORNIA COURT IN ITS DECISION LAST WEEK VEHEMENTLY DISAGREED WITH NEW YORK'S HIGH COURT IT STATED THAT LAW FIRMS SHOULD BE TREATED NO DIFFERENTLY FROM OTHER BUSINESS PARTNERSHIPS INCLUDING DOCTORS' AND ACCOUNTANTS' PRACTICES WHICH ARE PERMITTED IN CALIFORNIA TO ENTER INTO AGREEMENTS RESTRICTING COMPETITION A REVOLUTION IN THE PRACTICE OF LAW HAS OCCURRED REQUIRING ECONOMIC INTERESTS OF THE LAW FIRM TO BE PROTECTED AS THEY ARE IN OTHER BUSINESS ENTERPRISES THE COURT SAID IN EXPLAINING ITS REASONING WE ARE CONFIDENT THAT OUR RECOGNITION OF A NEW REALITY IN THE PRACTICE OF LAW WILL HAVE NO DELETERIOUS EFFECT ON THE CURRENT ABILITY OF CLIENTS TO RETAIN LOYAL COMPETENT COUNSEL OF THEIR CHOICE THE CASE STEMMED FROM THE DEPARTURE OF SEVERAL PARTNERS FROM A LOS ANGELESBASED FIRM NOW KNOWN AS PARKER STANBURY BABCOCK COMBS & BERGSTEN THE DEFECTORS IN 1987 FORMED THEIR OWN SANTA ANA LAW FIRM NOW CALLED HOWARD MOSS LOVEDER STRICKROTH & WALKER IN COMPETITION WITH THEIR OLD FIRM'S ORANGE COUNTY OFFICE ACCORDING TO THE COURT'S OPINION THEY WERE DENIED THEIR SHARE OF ACCOUNTS RECEIVABLE AND BILLINGS FROM WORK IN PROGRESS STEPHEN GILLERS A PROFESSOR OF LEGAL ETHICS AT NEW YORK UNIVERSITY SCHOOL OF LAW SAYS THE CONFLICTING CALIFORNIA AND NEW YORK RULINGS WILL CAUSE DAUNTING MANAGEMENT PROBLEMS FOR LARGE LAW FIRMS WITH PARTNERS PRACTICING IN BOTH STATES MR GILLERS WHO HELPED REPRESENT LORD DAY IN THE NEW YORK CASE NOTED THAT ALMOST 280000 OF THE APPROXIMATELY 850000 LAWYERS NATIONWIDE PRACTICE IN NEW YORK OR CALIFORNIA THERE ARE SO MANY QUESTIONS SAYS MR GILLERS HOW DO YOU RUN A NATIONAL LAW FIRM WHEN YOU HAVE NEW YORK AND CALIFORNIA DISAGREEING THOMAS H VICKERS THE LOS ANGELES LAWYER REPRESENTING PARKER STANBURY SAID THAT AS A RESULT OF THE DECISION LAW FIRMS WITH OFFICES IN MORE THAN ONE STATE MIGHT INSERT CLAUSES IN THEIR PARTNERSHIP AGREEMENTS SELECTING WHICH STATE'S LAW WILL APPLY IF A DISPUTE DEVELOPS STANLEY R JONES THE LOS ANGELES LAWYER FOR THE SANTA ANA DEFECTORS ARGUES THAT THE STATE SUPREME COURT RULING MAY HARM CLIENTS WHO WISH TO FOLLOW THEIR LAWYERS TO NEW FIRMS ATTORNEYS MIGHT BE FACED WITH SAYING I CAN'T REPRESENT YOU BECAUSE I WILL LOSE A SIGNIFICANT PORTION OF MY NET WORTH IF I DO' MR JONES SAYS ANTICOMPETITIONTYPE CLAUSES HAVE BEEN A CONSTANT SOURCE OF LITIGATION BETWEEN LAWYERS AND LAW FIRMS IN RECENT YEARS IN CALIFORNIA FOR INSTANCE THE 150LAWYER SANTA MONICA FIRM HAIGHT BROWN & BONESTEEL HAS BEEN WAGING A COURT BATTLE WITH A PARTNER WHO LEFT IN 1988 THE STATE SUPREME COURT DECISION SAYS HAIGHT BROWN PARTNER ROY G WEATHERUP PROVES WE WERE RIGHT ALL ALONG AND IN NEW YORK A DISPUTE IS RAGING BETWEEN MILBANK TWEED HADLEY & MCCLOY AND FORMER PARTNER KEVIN R HACKETT WHO JOINED FRIED FRANK HARRIS SHRIVER & JACOBSON IN 1991 MILBANK TWEED HAD REVAMPED ITS PARTNERSHIP AGREEMENT AFTER THE 1989 NEW YORK CASE TO REDUCE PAYMENTS TO DEPARTING PARTNERS IF THEY MADE MORE THAN 100000 A YEAR AT THEIR NEW JOBS THE FIRM BELIEVED ITS AGREEMENT WAS UNASSAILABLE UNDER THE NEW YORK DECISION ACCORDING TO MILBANK TWEED PARTNER RUSSELL E BROOKS BUT ON DEC 1 A NEW YORK TRIAL JUDGE THREW OUT AN ARBITRATOR'S DECISION IN MR HACKETT'S FAVOR MILBANK TWEED WILL APPEAL A PROPOSAL FOR EUROPEAN COMMUNITY LEGISLATION THAT WOULD MAKE IT EASIER FOR EMPLOYEES TO BRING SEXDISCRIMINATION CASES IS FOUNDERING BECAUSE OF BRITISH OPPOSITION THE PROPOSED DIRECTIVE WHICH WOULD HAVE TO BE ADOPTED UNANIMOUSLY WOULD SHIFT THE BURDEN OF PROOF IN SEXDISCRIMINATION CASES TO THE EMPLOYER CURRENTLY AS IN THE US WOMEN OR MEN HAVE TO PROVE TO A COURT THAT THEY ARE BEING TREATED DIFFERENTLY BECAUSE OF THEIR SEX THE LEGISLATION WAS DISCUSSED BRIEFLY AT A MEETING OF EC SOCIALAFFAIRS MINISTERS LAST MONTH WHERE BRITAIN VOICED STRONG OPPOSITION DENMARK ALSO RAISED SOME CONCERNS BUT EC OFFICIALS SAID THE DANES DIDN'T OPPOSE THE MEASURE IN PRINCIPLE BRITAIN'S EMPLOYMENT SECRETARY DAVID HUNT ARGUED THAT IN HIS COUNTRY IT IS RELATIVELY EASY TO BRING SEXDISCRIMINATION CASES WHICH ARE HEARD BY INDUSTRIAL TRIBUNALS SHIFTING THE BURDEN OF PROOF WOULD TIP THE BALANCE TOO FAR IN FAVOR OF THE COMPLAINANT HE SAID SEE RELATED LETTER LETTERS TO THE EDITOR THEY MAKE 'EM AND BREAK 'EM WSJ JAN 13 1993 9312140115 YY94 MM01 9401130093 931201 RENDERING THE SHEEP SPEECHLESS IS A JOB FOR POLISH TRANSLATOR HE TURNS POPULAR US NOVELS INTO PROSE POLES CAN READ SILENCE OF LAMBS' IS ONE BY BARRY NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL WARSAW DARE YOU CONFRONT A TERROR AS OLD AS SIN ITSELF ANDRZEJ SZULC DARES THE PUBLISHER'S BLURB IS ABOUT THE PLOT OF THE SLEEPLESS A NEW GRAHAM MASTERTON HORROR NOVEL BUT FOR MR SZULC THE TERROR ISN'T SO MUCH IN THE PLOT AS IN THE PROSE AND IN THE TERRIFYING TASK OF TRANSLATING IT FROM ENGLISH TO POLISH STRANGE CREATURES FROM BIBLICAL TIMES ARE TRYING TO GET WHOLE OF US AND BOSTON IN TURMOIL SAYS MR SZULC HE LEANS IN TOWARD THE SCREEN OF HIS ANTIQUE COMPUTER JIGGLES HIS KNEES AND RECHECKS THE MANUSCRIPT BY HIS SIDE HE IS ON PAGE 286 SHOOTING FOR 296 BY DAY'S END AN AIRPLANE HAS EXPLODED SOMEONE HAS BEEN BLOWN TO BITS BITS LITERALLY MR MASTERTON HAS WRITTEN LITTLE BITS AND PIECES EXACTLY LIKE A JIGSAW ONLY FLESH AND BONE IN FACT HE WAS MORE SEVERELY INJURED THAN ANYBODY ELSE ON THE AIRCRAFT MR SZULC ROCKS BACK AND HIS CHAIR BANGS THE BOOKCASE HE IS 39 A BIG MAN AND HIS HOME OFFICE IS FIVE FEET WIDE IF YOU ARE INJURED HE SAYS YOU ARE STILL ALIVE HE IS NOT INJURED TO ME HE FLIPS THROUGH ONE OF HIS DICTIONARIES THEN HE LIGHTS UP HE IS TORN TRANSLATING HE TYPES LITERALLY PIECES BIGGER AND SMALLER PIECES EXACTLY LIKE SO IN PUZZLE ONLY THAT FROM BONES AND MUSCLES IN FOUNDATION OF THINGS HE WAS TORN MORE THAN ANYBODY IN PLANE IN POLISH IT SOUNDS FINE NOT THE MOST LYRICAL LANGUAGE POLISH SOUNDS BEST OF ALL TO MR SZULC WHOSE NAME SOUNDS LIKE SCHULTZ AT COLLEGE IN THE 1970S HE STUDIED POLISH LITERATURE ITS SIBILANT MELODIES WHISPER IN HIS EAR AS HE WORKS HIS ENGLISH CONVERSELY CAN'T CARRY A TUNE I HAVE BEEN ONLY ONCE IN ENGLISHSPOKEN COUNTRY HE SAYS I COULD NOT TRANSLATE POLISH TO ENGLISH BECAUSE MY ENGLISH IS NOT SO WELL NO MATTER IF MR SZULC WERE TRANSLATING HEMINGWAY OR FAULKNER HE WOULD HAVE TO SPOT THE NUANCES BUT POLES GOT ALL THE HEMINGWAY AND FAULKNER THEY COULD READ 30 YEARS AGO AFTER 1989'S REVOLUTION THE ONLY WESTERN FICTION THE EAST CRAVED DIDN'T HAVE NUANCES IT'S THE KIND THAT COMES BETWEEN EMBOSSED REDANDGOLD COVERS FEATURING SWASTIKAS SEXY WOMEN RUSSIAN TANKS FANGTOOTHED MONSTERS AND COUPLES IN WINDSWEPT EMBRACE MR SZULC DIDN'T HAVE TO BE FLUENT TO TRANSLATE EFFLUENT AFTER SIX LUCRATIVE YEARS DRIVING A CAB HE CAME TO THIS VOCATION BY ACCIDENT LIVING WITH HIS WIFE AND DAUGHTER IN TWO ROOMS HE WANTED FOUR ARTISTS WERE ENTITLED TO FOUR SO MR SZULC VISITED AN OLD FRIEND A MAGAZINE EDITOR A REDACTOR HE SAYS TO ASK A FAVOR I ASKED THEM TO WROTE A CERTIFICATE THAT I AM CONDUCTING CREATIVE ACTIVITIES WRITER TRANSLATOR WHATEVER THEY SAID YES WE CAN WRITE YOU WHAT YOU WANT BUT WHY DON'T YOU START TRANSLATING' SO THEY GAVE ME ONE TWO THREE THINGS SHORTLY AFTERWARD MR SZULC GOT HIS APARTMENT HIS WIFE LEFT HIM COMMUNISM FELL AND POLISH PULPPAPERBACK PUBLISHING EXPLODED WITH A HUNDRED OTHERS WHO COULD READ ENGLISH AND WRITE POLISH MR SZULC HUSTLED OVER TO AMBER THE SHOWIEST OF 1000 NEW HOUSES IT HAS A LIST OF 150 AUTHORS THAT WOULD TURN THE BANTAM BOOKS ROOSTER GREEN CRICHTON KING GRISHAM LUDLUM FOLLETT FORSYTH AMBER'S EDITORS WERE IN A RUSH THEY PULLED BOOKS APART AND HANDED OUT THE PIECES TO 10 OR 20 TRANSLATORS MR SZULC GOT A PIECE OF A FORSYTH AND MADE 300 IN A MONTH TRIPLE HIS TAXIDRIVING PEAK IN 1990 I MAKE ALREADY DECISION HE SAYS TO PROCESS PULP INTO POLISH NONSTOP HE HAS ZOOMED THROUGH 12 BOOKS SINCE THE SPEECHLESSNESS OF THE SHEEP BY THOMAS HARRIS WAS AMONG HIS FIRST THEN CAME SCHOOL OF CHARM BY NELSON DEMILLE AND WEEKEND WITH OSTERMAN BY ROBERT LUDLUM MR SZULC KNOWS THAT MR LUDLUM'S TITLE WAS THE OSTERMAN WEEKEND BUT HE DECIDED TO FIX IT ALL HIS TITLES HAVE TWO WORDS MR SZULC SAYS SUBJECT AND OBJECT BUT WITH ME IS DIFFICULT OSTERMAN IS GUEST NOT HOST WHEN SOMEBODY COMES TO YOU IT IS NOT HIS WEEKEND IS ONLY WEEKEND WITH HIM A COUPLE OF EARLY BOOKS TOOK HIM OVER FOUR MONTHS TO FINISH NOW MR SZULC CAN WHACK ONE OUT IN 70 DAYS A WEEK OR TWO READING THEN A PAGE AN HOUR 10 HOURS A DAY UNTIL THE CIA PUTS THE DECLARATION OF INDEPENDENCE BACK IN ITS CASE OR THE FBI KILLS THE CANNIBAL FOR MR SZULC DIALOGUES AND MONOLOGUES FLOW QUICKLY ACTION SLOWLY YOU MUST FIGURE OUT WHAT IT IS AND WRITE YOUR OWN PARAGRAPH HE SAYS BECAUSE ENGLISH ARE DESCRIBING REALITY IN ANOTHER WAY BUT GREATER RIDDLES ARISE WHEN EAST AND WEST MISS EACH OTHER COMPLETELY ONCE A YANKEE SPY WAS DODGING THE KGB IN MOSCOW HE GOT OUT A WINDOW AND HID ON A FIRE ESCAPE MR SZULC HAD BEEN TO MOSCOW AND DIDN'T SEE ANY FIRE ESCAPES SO HE PUT THE YANK OUT ON A LEDGE WHEN THE ACTION MOVES WEST THOUGH HIS DODGES ARE LESS DEFT FOR SCRAMBLER HE SETTLED FOR SKRAMBLER FOR THAT LITTLE THING WHICH PEEPS HE GAVE UP AND USED PAGER RECENTLY HE CONFRONTED WATER COOLER YOU KNOW THERE IS SUCH A THING AS BIG BOX IN AMERICAN OFFICE AND YOU PUSH THE BUTTON AND DRINK THE WATER SUCH A THING WITH ICE THERE IS NO SUCH A THING IN POLAND SO I LOOK FOR DESCRIPTION TWO WORDS SO I WRITE FAUCET WITH WATER' I CREATE NEW PHRASE OFTEN HIS EFFORTS MAKE MR SZULC TENSE AND TIRED HE LIVES BY HIMSELF IN HIS FOUR ROOMS AT THE FAR END OF AN ANONYMOUS PROJECT ON A FAR EDGE OF TOWN YOU ARE SITTING ALL THE DAY AT HOME HE SAYS I DON'T HAVE TELEPHONE WHICH IS DAMNATION WHEN KEN FOLLETT ARRIVED IN WARSAW TO SIGN BOOKS MR SZULC WENT TO MEET HIM WE MADE SHAKE HANDS HE RECALLS HE WAS NOT MUCH INTERESTED IN CONVERSATION ALL THE ADVENTURE SEEMS TO BE IN THE NOVELS IT WASN'T LIKE THIS IN 1956 ONE TOP TRANSLATOR OF THAT EPOCH WACLAW NIEPOKOLDZYCKI STUDIED ENGLISH LITERATURE AND BEGAN HIS CAREER WITH GRAHAM GREENE AND EVELYN WAUGH HE TRAVELED ACROSS THE US IN 1961 AND PICKED UP SLANG FROM WILLIAM STYRON AND NELSON ALGREN BACK THEN A TRANSLATOR WORKED AT HIS OWN PACE ON THE BEST BOOKS THE COMMUNISTS NOT THE MARKET WOULD BEAR FOR MR SZULC THOUGH THE PACE OF POLISH PULP IS GETTING TO BE UNBEARABLE HE DREAMS OF UNEARTHING THE UNDERGROUND LITERARY REVIEW HE ONCE EDITED BUT WITH POLAND'S NOVELISTS DEEP IN POSTCOMMUNIST WRITERS' BLOCK HE WOULD HAVE LITTLE REVIEWABLE LITERATURE AND YET HIS TRANSLATING NO LONGER TRANSLATES SO FREELY INTO CASH AS HE PUTS IT PEOPLE DO NOT BUY THERE IS MUCH GARBAGE BLOCKBUSTER PUBLISHERS HAVE GONE BUST PRINT RUNS ONCE 300000 HAVE DIVED TO 15000 AMBER IS FIGHTING BACK BY PUMPING OUT 200 TITLES THIS YEAR AND INSTEAD OF PAYING TRANSLATORS FAT ROYALTIES IT PAYS FLAT FEES TO KEEP AHEAD OF TAXI DRIVING MR SZULC MUST RAM THROUGH MORE BOOKS FOR LESS SO IT'S TIME HE GOT BACK TO THE HORROR OF THE MASTERTON MANUSCRIPT MR MASTERTON HAS WRITTEN THE BOTTOM OF THE AIRPLANE OPENED UP LIKE GOD WAS SHELLING PEAS AND EVERYBODY DROPPED OUT MR SZULC TYPES BOTTOM OF PLANE OPENED ITSELF SO AS IF MR GOD SHELLED POD OF PEA AND EVERYBODY FELL TO THE DOWN JESUS MR MASTERTON WROTE YOU'RE WHITE AS A SHEET JESUS MR SZULC TYPES YOU'RE PALE AS A WALL IF THE ENGLISH IS ENIGMATIC HE WANTS THE POLISH POLISHED A MAN ON PAGE 286 IS SURPRISED BY SOMETHING HE KNEW ON PAGE 285 MR SZULC CALMS HIM DOWN A VIOLINIST PLAYS A HIGH AND HUNGRY PASSAGE MR SZULC SHAKES HIS HEAD THIS HUNGRY' IS NONSENSICAL HE SAYS AND CUTS IT OUT ON PAGE 289 MR SZULC TAKES A BREAK EVEN THOUGH NOW WHEN I'M A PROFESSIONAL TRANSLATOR ALWAYS I DON'T LIKE BECAUSE I SEE MANY MISTAKES HE SAYS HE GOES TO THE KITCHEN AND RETURNS WITH A LARGE BOTTLE OF WODA ANTISTRESOWA LITERAL TRANSLATION ANTISTRESS WATER THERE'S NO WORD FOR IT IN ENGLISH SEE RELATED LETTERS LETTERS TO THE EDITOR SOMETHING AS ALWAYS GETS LOST IN TRANSLATION WSJ JAN 13 1994 9312010202 YY94 MM01 9401120175 931029 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS LAWYERS WEREN'T EXACTLY THRILLED WHEN THE GOVERNMENT STARTED ACCUSING PROMINENT LAW FIRMS OF COMPLICITY IN BIG SAVINGSANDLOAN FAILURES A FEW YEARS AGO BUT THEY THOUGHT THEY AT LEAST WOULD GET SOME ANSWERS TO THE QUESTIONS THE LAWSUITS RAISED DOES A LAW FIRM REPRESENTING A REGULATED BUSINESS OWE ANY SPECIFIC DUTY TO THE REGULATORS OR JUST TO ITS CLIENT MUST A LAWYER PERSONALLY VERIFY A CLIENT'S DISCLOSURE FILINGS BEFORE PROCESSING THE PAPERS MUST LAWYERS REPORT SUSPECTED WRONGDOING BY A CLIENT'S TOP OFFICIALS TO THE CLIENT'S DIRECTORS BY NOW SOME 150 CASES RAISING THESE ISSUES HAVE BEEN BROUGHT AGAINST LAW FIRMS BY THE FEDERAL AGENCIES INVOLVED IN THE THRIFT BAILOUT AND LAWYERS AND THEIR INSURERS HAVE PAID THE GOVERNMENT ROUGHLY 400 MILLION ON ACCOUNT OF SUCH CLAIMS BUT ASTONISHINGLY IN AN ERA WHEN ATTORNEYS ARE BEING CALLED TO ACCOUNT FOR THEIR ETHICS WITH UNPRECEDENTED FREQUENCY NO COURT HAS SPOKEN WITH FINALITY ABOUT WHETHER THE STANDARDS APPLIED BY THE GOVERNMENT ARE PROPER THERE'S A GREAT DEAL OF UNCERTAINTY SAYS ARTHUR LIEBOLD A WASHINGTON LAWYER AND FORMER GENERAL COUNSEL OF THE FEDERAL HOME LOAN BANK BOARD IN 1989 I THOUGHT I UNDERSTOOD WHAT MY PROFESSIONAL RESPONSIBILITIES WERE NOW I DON'T HAVE A CLEAR UNDERSTANDING OF WHAT LAW IS APPLICABLE LAWYERS' CONFUSION ISN'T JUST THEIR PROBLEM IT IS COSTING CLIENTS MONEY AS WELL SOME ATTORNEYS WHO REPRESENT FINANCIAL INSTITUTIONS NOW PRIVATELY TALK ABOUT SPENDING HOURS CREATING OBSESSIVELY DETAILED MEMORANDA ABOUT WHAT THEY HAVE TOLD THEIR CLIENTS IN CASE THEY ARE QUESTIONED LATER THEY ALSO WIND UP BILLING FOR ENDLESS DUE DILIGENCE INVESTIGATIONS INTO THEIR CLIENTS' FINANCIAL HEALTH JUST TO BE ON THE SAFE SIDE SOME OF THIS WORK MAY HELP DETER PROBLEMS BUT THE EXTRA WORK ALSO PUMPS UP THE LAW FIRMS' HOURLY BILLINGS THE REASON NO CLEAR LEGAL DOCTRINE HAS EMERGED FROM THE WELTER OF GOVERNMENT LAWSUITS CAN BE SUMMARIZED IN ONE WORD SETTLEMENTS OUT OF 59 THRIFTRELATED CASES AGAINST LAWYERS THAT HAVE CONCLUDED SO FAR 56 HAVE SETTLED WITHOUT ANY OF THE FIRMS ADMITTING TO THE VALIDITY OF THE CLAIMS NO BROAD RULINGS ON LAWYERS' DUTIES WERE MADE IN THE TWO CASES THAT DID GO TO TRIAL AND A LAW FIRM WAS DISMISSED FROM THE THIRD CASE IS IT POSSIBLE THE FEDS HAVE BEEN BRINGING CHARGES THAT ARE UNSUPPORTED BY THE LAW CAROLYN LIEBERMAN ACTING CHIEF COUNSEL OF THE OFFICE OF THRIFT SUPERVISION WHICH HAS BROUGHT THE MOST CONTROVERSIAL CASES BRISTLES AT SUCH A SUGGESTION THE LEGAL PRINCIPLES BEHIND THE AGENCY'S ALLEGATIONS SHE SAYS CLEARLY DERIVE FROM BANKING REGULATIONS BUT THAT DOESN'T ASSUAGE THE CONCERNS OF ATTORNEYS WITH BANK AND THRIFT CLIENTS SOME OF THE AGENCY'S CLAIMS ARE CONTRARY TO WHAT THE MODEL RULES OF PROFESSIONAL RESPONSIBILITY ARE SAYS MR LIEBOLD ONE STRIKING EXAMPLE THE OTS HAS ALLEGED THAT AN ATTORNEY REPRESENTING A CLIENT IN A BANK EXAMINATION MUST DISCLOSE TO THE EXAMINER THAT A CLIENT MISLED REGULATORS A KEY ISSUE IN THE AGENCY'S CASE LAST YEAR AGAINST KAYE SCHOLER FIERMAN HAYS & HANDLER INVOLVING THE FIRM'S REPRESENTATION OF LINCOLN SAVINGS & LOAN ASSOCIATION LAWYERS SAY THEIR DUTY TO THE CLIENT PROHIBITS THEM FROM DOING SO THIS VIEW WAS RECENTLY ENDORSED BY THE AMERICAN BAR ASSOCIATION ETHICS COMMITTEE WHICH WRITES THE RULES OF LEGAL CONDUCT THAT MOST STATES ADOPT WHICH IS IT THE FEDERAL COURTS MIGHT BE ABLE TO ARTICULATE THE PROPER RULE BUT AFTER KAYE SCHOLER'S 41 MILLION SETTLEMENT AND OTHERS THEY HAVEN'T BEEN ASKED ACADEMICS AS WELL AS PRACTICING LAWYERS FIND THEMSELVES AT SEA WHEN A STUDENT SAYS SO WHAT IS THE RULE' THAT'S WHEN WE REALLY HAVE PROBLEMS SAYS LAWRENCE BAXTER A PROFESSOR OF BANKING REGULATION AT DUKE UNIVERSITY LAW SCHOOL JUST AS TROUBLING THE SETTLEMENTS DRAW A VEIL ACROSS THE FACTS OF PAST CASES MAKING IT NEARLY IMPOSSIBLE TO DISTINGUISH TRULY CULPABLE LAWYERS FROM THOSE WHOSE CONDUCT MAY HAVE BEEN LESS EGREGIOUS ALTHOUGH IT IS NATURAL TO ASSUME THAT THE WORST OFFENDERS PAID THE HIGHEST PRICE NOT EVEN THE REGULATORS THEMSELVES MAKE THAT CLAIM INDEED GOVERNMENT LAWYERS FREELY CONCEDE THAT A MAJOR CRITERION FOR DETERMINING WHICH CASES TO PURSUE AND HOW MUCH MONEY TO ACCEPT IS THE LEVEL OF A FIRM'S INSURANCE COVERAGE PARTICULARLY WITH ATTORNEYS WE HAVE TO MAKE SURE THERE WILL BE SOME KIND OF RECOVERY SOURCE THAT WOULD JUSTIFY BRINGING THIS KIND OF LAWSUIT SAYS RTC LAWYER THOMAS HINDES FOR THEIR PART FIRMS HAVE HAD LITTLE INCENTIVE TO LITIGATE WHEN THEY KNOW SETTLEMENT PAYMENTS COME LARGELY FROM INSURERS' POCKETS OTHER FACTORS UNRELATED TO CULPABILITY ALSO ARE AT WORK CHIEF AMONG THEM IS THE FIRMS' FEAR OF THE GOVERNMENT'S POWER TO FREEZE THEIR ASSETS OR BAR THEM FROM REPRESENTING THRIFTS KAYE SCHOLER SETTLED THE LINCOLN S&L CASE LESS THAN A WEEK AFTER THE OTS BRIEFLY SEIZED THE PARTNERS' ASSETS IN ANOTHER OTS CASE THE PITTSBURGHBASED LAW FIRM KIRKPATRICK & LOCKHART AGREED TO A 9 MILLION SETTLEMENT A FEW MONTHS LATER AFTER IT WAS APPARENT TO THE FIRM THAT THE AGENCY MIGHT HAVE HAD THE POWER TO BAR SOME OF THE FIRM'S TOP LAWYERS FROM THE BANKING FIELD A MOVE THAT POTENTIALLY COULD CRIPPLE KIRKPATRICK'S WASHINGTON OFFICE UNDER THE SETTLEMENT ONE PARTNER ALAN BERKELEY WAS BARRED FROM REPRESENTING FEDERALLY INSURED DEPOSITORY INSTITUTIONS FOR THREE YEARS LAW FIRMS KNOW TOO WELL THE CALCULUS OF CONTESTING IN THE CASE AGAINST PAUL WEISS RIFKIND WHARTON & GARRISON OVER ITS REPRESENTATION OF CENTRUST SAVINGS BANK MANY AT THE LAW FIRM AT FIRST RESISTED CAPITULATING BEFORE AGREEING TO A 45 MILLION DEAL LAST MONTH SEE RELATED LETTER LETTERS TO THE EDITOR OTS'S POSITION ON LAWYER ETHICS WSJ JAN 12 1994 9310290188 YY94 MM01 9401110013 931216 REVIEW & OUTLOOK EDITORIAL ASIDES TV VIOLENCE SPEAKING OF CULTURE WARS THE CITIZENS TASK FORCE ON TV VIOLENCE WANTS GRATUITOUS DRAMATIZED VIOLENCE OFF THE AIR FROM 6 PM TO 10 PM WHEN CHILDREN ARE MOST LIKELY TO BE WATCHING CHILDREN WHAT ARE THE REST OF US SUPPOSED TO WATCH A LOT OF PEOPLE WHO BEAT THEIR BRAINS OUT ALL DAY TRADING DERIVATIVES AND SUCH LIKE TO UNWIND FROM 8 PM ONWARD WITH OLD FRIENDS LIKE DIRTY HARRY THE GODFATHER OR BRUCE LEE SOMEHOW NICK AT NITE DOESN'T QUITE FIT THE BILL AFTER A DAY OF LITIGATING OR SUTURING WE'VE TRIED RELAXING WITH CONGRESS ON CSPAN BUT IT'S PRETTY FRIGHTENING AND WHAT ABOUT THE UNDRAMATIZED PRIME TIME MAYHEM FROM THE NATIONAL HOCKEY LEAGUE WHAT ABOUT NFL DEFENSIVE BACKS WHAT ABOUT MIKE WALLACE SEE RELATED LETTER LETTERS TO THE EDITOR A TACTICAL CHANGE IN CULTURE WARS' WSJ JAN 7 1994 9312160071 YY94 MM01 9401100172 931206 DANGER INDOCTRINATION A SCOPES TRIAL FOR THE '90S BY STEPHEN C MEYER WHEN MOST OF US THINK OF THE CONTROVERSY OVER EVOLUTION IN THE PUBLIC SCHOOLS WE ARE LIKELY TO THINK OF FUNDAMENTALISTS PULLING TEACHERS FROM THEIR CLASSROOMS AND PLACING THEM IN THE DOCK IMAGES FROM THE INFAMOUS SCOPES MONKEY TRIAL OF 1925 COME TO MIND UNFORTUNATELY INTOLERANCE OF THIS SORT HAS SHOWN ITSELF IN CALIFORNIA IN THE 1990S AS A RESULT OF STUDENTS COMPLAINING ABOUT A BIOLOGY INSTRUCTOR UNLIKE THE ORIGINAL SCOPES CASE HOWEVER THIS CASE INVOLVES A DISTINGUISHED BIOLOGY PROFESSOR AT A MAJOR UNIVERSITY INDEED AN ACKNOWLEDGED EXPERT ON EVOLUTIONARY THEORY ALSO UNLIKE SCOPES THE TEACHER WAS FORBIDDEN TO TEACH HIS COURSE NOT BECAUSE HE TAUGHT EVOLUTIONARY THEORY WHICH HE DID BUT BECAUSE HE OFFERED A CRITICAL ASSESSMENT OF IT THE CONTROVERSY FIRST EMERGED LAST FALL AFTER DEAN KENYON A BIOLOGY PROFESSOR AT SAN FRANCISCO STATE UNIVERSITY WAS ORDERED NOT TO TEACH CREATIONISM BY JOHN HAFERNIK THE CHAIRMAN OF HIS BIOLOGY DEPARTMENT MR KENYON WHO INCLUDED THREE LECTURES IN BIOLOGICAL ORIGINS IN HIS INTRODUCTORY COURSE HAD FOR MANY YEARS MADE A PRACTICE OF EXPOSING STUDENTS TO BOTH EVOLUTIONARY THEORY AND EVIDENCE UNCONGENIAL TO IT HE ALSO DISCUSSED THE PHILOSOPHICAL CONTROVERSIES RAISED BY THE ISSUE AND HIS OWN VIEW THAT LIVING SYSTEMS DISPLAY EVIDENCE OF INTELLIGENT DESIGN A VIEW NOT INCOMPATIBLE WITH SOME FORMS OF EVOLUTIONARY THINKING MR HAFERNIK ACCUSED MR KENYON OF TEACHING WHAT HE CHARACTERIZED AS BIBLICAL CREATIONISM AND ORDERED HIM TO STOP AFTER MR HAFERNIK'S DECREE MR KENYON ASKED FOR CLARIFICATION HE WROTE THE DEAN JIM KELLEY ASKING WHAT EXACTLY HE COULD NOT DISCUSS WAS HE FORBIDDEN TO MENTION TO STUDENTS THAT THERE ARE IMPORTANT DISPUTES AMONG SCIENTISTS ABOUT WHETHER OR NOT CHEMICAL EVOLUTION COULD HAVE TAKEN PLACE ON THE ANCIENT EARTH MR KELLEY REPLIED BY INSISTING THAT MR KENYON TEACH THE DOMINANT SCIENTIFIC VIEW NOT THE RELIGIOUS VIEW OF SPECIAL CREATION ON A YOUNG EARTH MR KENYON REPLIED AGAIN I PARAPHRASE I DO TEACH THE DOMINANT VIEW BUT I ALSO DISCUSS PROBLEMS WITH THE DOMINANT VIEW AND THAT SOME BIOLOGISTS SEE EVIDENCE OF INTELLIGENT DESIGN HE RECEIVED NO REPLY INSTEAD HE WAS YANKED FROM TEACHING INTRODUCTORY BIOLOGY AND REASSIGNED TO LABS THERE ARE SEVERAL DISTURBING ASPECTS TO THIS STORY FIRST MR KENYON IS AN AUTHORITY ON CHEMICAL EVOLUTIONARY THEORY AND THE SCIENTIFIC STUDY OF THE ORIGIN OF LIFE HE HAS A PHD IN BIOPHYSICS FROM STANFORD AND IS THE COAUTHOR OF A SEMINAL THEORETICAL WORK TITLED BIOCHEMICAL PREDESTINATION 1969 THE BOOK ARTICULATED WHAT WAS ARGUABLY THE MOST PLAUSIBLE EVOLUTIONARY ACCOUNT OF HOW A LIVING CELL MIGHT HAVE ORGANIZED ITSELF FROM CHEMICALS IN THE PRIMORDIAL SOUP MR KENYON'S SUBSEQUENT WORK RESULTED IN NUMEROUS SCIENTIFIC PUBLICATIONS ON THE ORIGINOFLIFE PROBLEM BUT BY THE LATE 1970S MR KENYON BEGAN TO QUESTION SOME OF HIS OWN EARLIER IDEAS EXPERIMENTS SOME PERFORMED BY MR KENYON HIMSELF INCREASINGLY CONTRADICTED THE DOMINANT VIEW IN HIS FIELD LABORATORY WORK SUGGESTED THAT SIMPLE CHEMICALS DO NOT ARRANGE THEMSELVES INTO COMPLEX INFORMATIONBEARING MOLECULES SUCH AS DNA WITHOUT THAT IS GUIDANCE FROM HUMAN EXPERIMENTERS TO MR KENYON AND OTHERS SUCH RESULTS RAISED IMPORTANT QUESTIONS ABOUT HOW NATURALISTIC THE ORIGIN OF LIFE REALLY WAS IF UNDIRECTED CHEMICAL PROCESSES CANNOT PRODUCE THE CODED STRANDS OF INFORMATION FOUND IN EVEN THE SIMPLEST CELLS COULD PERHAPS A DIRECTING INTELLIGENCE HAVE PLAYED A ROLE BY THE 1980S MR KENYON HAD ADOPTED THE SECOND VIEW THAT A MAN OF MR KENYON'S STATURE SHOULD NOW BE FORCED TO LOBBY FOR THE RIGHT TO TEACH INTRODUCTORY BIOLOGY WHATEVER HIS CURRENT VIEW OF ORIGINS IS ABSURDLY COMIC MR KENYON KNOWS PERHAPS AS MUCH AS ANYONE IN THE WORLD ABOUT A PROBLEM THAT HAS STYMIED AN ENTIRE GENERATION OF RESEARCH SCIENTISTS YET HE NOW FINDS THAT HE MAY NOT REPORT THE NEGATIVE RESULTS OF RESEARCH OR GIVE STUDENTS HIS CANDID ASSESSMENT OF IT WHAT IS MORE THE SIMPLISTIC LABELING OF MR KENYON'S STATEMENTS AS RELIGION AND THE STRICTLY MATERIALISTIC VIEW AS SCIENTIFIC SEEMS ENTIRELY UNWARRANTED ESPECIALLY GIVEN THE PHILOSOPHICAL OVERTONES OF MUCH ORIGINS THEORY BIOLOGY TEXTS ROUTINELY RECAPITULATE DARWINIAN ARGUMENTS AGAINST INTELLIGENT DESIGN YET IF ARGUMENTS AGAINST INTELLIGENT DESIGN ARE PHILOSOPHICALLY NEUTRAL AND STRICTLY SCIENTIFIC WHY ARE MR KENYON'S ARGUMENTS FOR INTELLIGENT DESIGN INHERENTLY UNSCIENTIFIC AND RELIGIOUSLY CHARGED IN SEEKING THE BEST EXPLANATION FOR EVIDENCE MR KENYON HAS EMPLOYED THE SAME METHOD OF REASONING AS BEFORE HE CHANGED HIS VIEW HIS CONCLUSIONS NOT HIS METHODS HAVE CHANGED THE PROBLEM IS THAT IN BIOLOGICAL ORIGINS THEORY DOMINANT PLAYERS CURRENTLY INSIST ON A RIGIDLY MATERIALISTIC MODE OF EXPLANATION EVEN WHEN AS MR KENYON MAINTAINS EXPLANATION OF THE EVIDENCE REQUIRES MORE THAN THE LIMITED POWERS OF BRUTE MATTER SUCH INTELLECTUAL STRICTURES REFLECT THE VERY ESSENCE OF POLITICAL CORRECTNESS THE SUPPRESSION OF CRITICAL DISCOURSE BY ENFORCED RULES OF THOUGHT FORTUNATELY SAN FRANCISCO STATE UNIVERSITY'S ACADEMIC FREEDOM COMMITTEE HAS COME TO A SIMILAR CONCLUSION RULING DECISIVELY THIS SUMMER IN MR KENYON'S FAVOR THE COMMITTEE DETERMINED THAT ACCORDING TO UNIVERSITY GUIDELINES A CLEAR BREACH OF ACADEMIC FREEDOM HAD OCCURRED APPARENTLY HOWEVER MR HAFERNIK AND MR KELLEY DISAGREE MR HAFERNIK HAS EMPHATICALLY REJECTED THE COMMITTEE'S RECOMMENDATION TO REINSTATE MR KENYON CITING HIS OWN FREEDOM TO DETERMINE SCIENTIFICALLY APPROPRIATE CURRICULUM IN RESPONSE THE AMERICAN ASSOCIATION OF UNIVERSITY PROFESSORS INFORMED THE UNIVERSITY LAST MONTH THAT THEY EXPECT MR KENYON'S MISTREATMENT TO BE RECTIFIED MEANWHILE AS SFSU CONSIDERS ITS RESPONSE A WORLDCLASS SCIENTIST WAITS YET ANOTHER CASUALTY OF AMERICA'S PECULIAR ACADEMIC FUNDAMENTALISM MR MEYER TEACHES THE HISTORY AND PHILOSOPHY OF SCIENCE AT WHITWORTH COLLEGE IN SPOKANE WASH SEE RELATED LETTERS LETTERS TO THE EDITOR IN THE BEGINNING THERE WAS WSJ DEC 15 1993 SEE RELATED LETTER LETTERS TO THE EDITOR ORIGINATOR RECANTED ON NATURAL SELECTION' WSJ JAN 10 1994 9312060147 9312150126 YY93 MM12 YY94 MM01 9401100158 931209 CLINTON'S DUMPING COULD SINK GATT BY JAMES BOVARD THE HOTTEST ISSUE IN THE RACE TO WEDNESDAY'S DEADLINE FOR THE COMPLETION OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE TALKS HAS BEEN FRANCE'S FEAR THAT THE AGREEMENT WILL DUMP AMERICAN COMMERCIAL TV CULTURE ON HELPLESS FRENCH FAMILIES BUT UNFORTUNATELY SOMEBODY THE CLINTON ADMINISTRATION IS ALSO TAKING AN ARCHPROTECTIONIST VIEW ON LITERAL DUMPING THROUGH THE US STANCE ON THE GATT DUMPING CODE GATT DIRECTOR PETER SUTHERLAND SAID LAST WEEK THAT THE US POSITION ON THE CODE IS ONE OF THE BIGGEST IMPEDIMENTS TO CONCLUDING THE TALKS THE CLINTON POSITION ON DUMPING IS A BETRAYAL OF AMERICAN EXPORTERS OF AMERICAN CONSUMERS AND OF AMERICAN LEADERSHIP IN WORLD TRADE LIBERALIZATION DUMPING PENALTIES ARE THE EPITOME OF THE NEW PROTECTIONISM ARCANE TRADE BARRIERS OFTEN CONCOCTED BEHIND CLOSED DOORS BY GOVERNMENT BUREAUCRATS ACCOUNTABLE TO NO ONE DUMPING OCCURS WHEN A COMPANY CHARGES A LOWER PRICE FOR A PRODUCT IN AN EXPORT MARKET THAN IN ITS HOME MARKET OR WHEN A FOREIGN COMPANY SELLS PRODUCTS FOR LESS THAN THE COSTOFPRODUCTION PLUS A LARGE PROFIT WHEN THE COMMERCE DEPARTMENT FINDS A FOREIGN COMPANY GUILTY OF DUMPING AND THE US INTERNATIONAL TRADE COMMISSION ALSO CONCLUDES THAT THE DUMPED PRODUCTS INJURED COMPETING AMERICAN COMPANIES THE US IMPOSES PENALTY TARIFFS ON THE IMPORTS EQUAL TO THE ALLEGED DUMPING MARGIN MAJOR INDUSTRIAL NATIONS REACHED A PRELIMINARY AGREEMENT KNOWN AS THE DUNKEL TEXT IN LATE 1991 TO REFORM AND LIBERALIZE MANY OF THE RULES GOVERNING WORLD TRADE THE DUNKEL TEXT ON THE GATT DUMPING CODE INCLUDED SOME MODEST REFORMS TO CURB PROTECTIONIST BUREAUCRATS BUT THE CLINTON ADMINISTRATION ON NOV 26 ISSUED 15 PAGES OF DEMANDS FOR CHANGES TO THE GATT DUMPING CODE US TRADE REPRESENTATIVE MICKEY KANTOR DECLARED LAST WEEK WE WANT TO MAKE SURE WE PROTECT OUR TRADE LAWS BUT IN REALITY THE ADMINISTRATION IS SEEKING TO SACRIFICE THE US'S MOST COMPETITIVE INDUSTRIES TO ITS LEAST COMPETITIVE SECTORS THE US HAS IMPOSED MORE DUMPING PENALTIES AGAINST LOWPRICED IMPORTS IN RECENT YEARS THAN HAS ANY OTHER GOVERNMENT IN THE WORLD THE COMMERCE DEPARTMENT HAS ISSUED MORE THAN 80 PRELIMINARY AND FINAL RULINGS IN DUMPING CASES THIS YEAR AND FOUND FOREIGN COMPANIES GUILTY IN ALMOST EVERY DECISION REP RICHARD GEPHARDT D MO DECLARED ON DEC 2 THAT CONGRESS WILL NOT APPROVE ANY GATT AGREEMENT THAT ALLOWS OTHER COUNTRIES TO ENGAGE IN UNFAIR PREDATORY TRADE PRACTICES PROTECTIONISTS PERENNIALLY ASSERT THAT DUMPING IS A PREDATORY ACTIVITY INTENDED TO DESTROY AMERICAN INDUSTRIES BUT THE ACTUAL US DEFINITION OF DUMPING MAKES A MOCKERY OF THIS CLAIM A FOREIGN COMPANY IS GUILTY OF DUMPING IF IT EARNS LESS THAN AN 8 PROFIT ON ITS US SALES THE AVERAGE AMERICAN CORPORATE PROFIT IS ONLY ABOUT 5 IN THE MINIVAN DUMPING CASE LAST YEAR THE COMMERCE DEPARTMENT COMPARED THE PRICE OF NEW MAZDA MINIVANS SOLD IN JAPAN WITH THE PRICE OF USED MAZDA MINIVANS SOLD IN THE US NATURALLY THE USED MINIVANS' US PRICE WAS BELOW THE PRICE FOR NEW MINIVANS SOLD IN JAPAN WHICH ALLEGEDLY PROVED DUMPING COMMERCE CONVICTED A TAIWANESE SWEATER COMPANY OF DUMPING BECAUSE THE COMPANY'S FACTORY HAD BURNED DOWN AND THE COMPANY COULD NOT ANSWER ALL THE QUESTIONS IN THE HUNDREDPAGE QUESTIONNAIRE COMMERCE SENT IT IT CONVICTED NEW ZEALAND KIWI FARMERS OF DUMPING AFTER IT COMPARED THE PRICE OF SMALL KIWIS SOLD IN THE US WITH LARGER KIWIS FROM NEW ZEALAND SOLD TO JAPAN THE COMMERCE DEPARTMENT SOMETIMES BLATANTLY RIGS ITS DUMPING INVESTIGATIONS A 1993 FEDERAL COURT CASE REVEALED THAT DEPARTMENT OFFICIALS CHANGED THE DUMPING MARGINS ON IMPORTS OF IRON MANHOLE COVERS FROM CHINA BECAUSE OF POLITICAL CONSIDERATIONS AS A CONFIDENTIAL COMMERCE MEMO CONFESSED DURING THE STEEL DUMPING INVESTIGATIONS EARLIER THIS YEAR COMMERCE SECRETARY RON BROWN MET WITH CHIEF EXECUTIVES OF US STEEL COMPANIES BUT REFUSED TO MEET WITH EXECUTIVES FROM FOREIGN STEELMAKERS THE AVERAGE DUMPING MARGIN IMPOSED IN 1993 BY THE COMMERCE DEPARTMENT HAS BEEN 64 SUCH PENALTY TARIFFS ARE ALMOST GUARANTEED TO LOCK FOREIGN COMPANIES OUT OF THE US MARKET FEW IMPORTERS CAN AFFORD TO PAY THAT TYPE OF SURTAX ESPECIALLY SINCE COMMERCE CAN RETROACTIVELY INCREASE THE DUMPING PENALTIES IN SUBSEQUENT RULINGS THE ADMINISTRATION IS DEMANDING UNDER GATT THAT THE US BE PERMITTED TO IMPOSE DUMPING PENALTIES ON FOREIGN COMPANIES THAT FAIL TO RECOVER A NEW FACTORY'S FULL STARTUP AND INVESTMENT COSTS WITHIN THE FIRST SIX MONTHS OF ITS OPERATIONS AND SALES SUCH A RULE WOULD EFFECTIVELY GUARANTEE EITHER THAT NEW PRODUCTS WILL NOT BE EXPORTED OR THAT THEY WILL BE SOLD ILLEGALLY NEW PRODUCTS AND COMPANIES ROUTINELY TAKE SEVERAL YEARS TO MAKE THEIR FIRST PROFIT GENERAL MOTORS'S SATURN FACTORY ONLY RECENTLY BECAME PROFITABLE AFTER FIVE YEARS OF LOSING MONEY UNDER THE CLINTON PROPOSAL FOREIGN GOVERNMENTS COULD IMPOSE HEAVY DUMPING PENALTIES ON THE SALES OF NEW BOEING 777S THE WORLD'S LARGEST TWINENGINE AIRPLANE FOR AT LEAST THE REST OF THE CENTURY IF THIS POSITION IS ACCEPTED IN A GATT AGREEMENT THE CLINTON ADMINISTRATION WILL HAVE A GREEN LIGHT TO REVISE THE US DUMPING LAW TO MAKE IT STILL MORE PROTECTIONIST THE DUNKEL TEXT REVISED THE DUMPING CODE TO PROHIBIT GOVERNMENTS FROM PENALIZING PRICE DIFFERENCES DUMPING MARGINS OF LESS THAN 2 BETWEEN HOMEMARKET AND FOREIGN PRICES BUT THE CLINTON ADMINISTRATION IS DEMANDING THAT THE US BE ALLOWED TO CONTINUE PENALIZING FOREIGN COMPANIES FOR DUMPING MARGINS AS LOW AS 05 A DIFFERENCE OF ONEHALF OF 1 IN US AND FOREIGN PRICES OVER THE SIXMONTH PERIOD OF A DUMPING INVESTIGATION IS ALMOST INEVITABLE CONSIDERING EXCHANGERATE FLUCTUATIONS AND THE MANIPULATIONS COMMERCE USES TO COMPARE PRICES THE 05 PRICE DIFFERENCE TEST OF DUMPING IS ALSO CONVENIENT TO PROTECTIONISTS BECAUSE THE US GOVERNMENT CAN PENALIZE FOREIGN COMPANIES FOR FAILING TO CHARGE AMERICAN CONSUMERS THE HIGHEST PRICES IN THE WORLD IN 1990 COMMERCE CONVICTED CHUNGI INDUSTRIAL CO OF KOREA BECAUSE IT SOLD SWEATERS TO AMERICANS FOR 12 LESS THAN IT SOLD SWEATERS TO MEXICANS AND CONVICTED YOUNG WOO CO BECAUSE ITS US SWEATER PRICES WERE 073 LESS THAN ITS PRICES TO THE UNITED KINGDOM TRADE REPRESENTATIVE MICKEY KANTOR DECLARED LAST THURSDAY THAT MANY COUNTRIES WOULD FLOOD OUR MARKETS WITH PRODUCTS ILLEGALLY IF THE US DUMPING LAW WERE REVISED ACCORDING TO THE DUNKEL TEXT THE US IS DEMANDING THAT IT BE ALLOWED TO CONTINUE IMPOSING DUMPING PENALTIES ON MINUSCULE QUANTITIES OF IMPORTS IN THE STEEL DUMPING RULINGS THIS PAST SUMMER POLAND AND ROMANIA WERE LOCKED OUT OF THE US MARKET WITH DUMPING PENALTIES OF 6198 AND 7504 RESPECTIVELY EVEN THOUGH THEIR COMBINED EXPORTS AMOUNTED TO LESS THAN 05 OF THE US STEEL SUPPLY DUMPING PENALTIES ARE IMPOSING HEAVY TAXES ON THE COMPETITIVENESS OF AMERICA'S LEADING INDUSTRIES DUMPING CASES HAVE INFLATED THE PRICE AMERICAN BUSINESSES MUST PAY FOR SEMICONDUCTORS COMPUTER FLAT PANELS STEEL RAILROAD RAILS AND BALL BEARINGS UNFORTUNATELY US TRADE LAW TOTALLY DISREGARDS THE INTERESTS AND NEEDS OF AMERICAN MANUFACTURERS WHO MUST RELY ON IMPORTED INPUTS FOREIGN NATIONS ARE INCREASINGLY IMITATING US DUMPING LAWS AND USING THEM TO BUSHWHACK AMERICAN EXPORTERS OUTSIDE OF THE US MARKET AMERICAN COMPANIES ARE HIT BY DUMPING PENALTIES MORE OFTEN THAN THOSE OF ANY OTHER NATION THE CLINTON ADMINISTRATION IS TOTALLY DISREGARDING THE NEEDS AND INTERESTS OF US EXPORTERS EVEN THOUGH THE US IS THE WORLD'S LARGEST EXPORTER THE EMERGENCY COALITION FOR AMERICAN TRADE A GROUP OF AMERICAN EXPORTERS IS VIGOROUSLY LOBBYING IN GENEVA HOME OF THE GATT TALKS TO DEFEAT MR CLINTON'S PROPOSALS THE CLINTON ADMINISTRATION IS ESSENTIALLY LETTING THE NATION'S INDUSTRIAL LAGGARDS WRITE THE RULES BY WHICH EVERYONE ELSE IN THE WORLD MUST PLAY THE US STEEL INDUSTRY APPEARS TO TOTALLY CONTROL MR CLINTON'S POLICY ON DUMPING THE DUMPING LAW IS THE BIG LIE OF MODERN TRADE POLICY INSTEAD OF OPENLY RAISING TARIFFS GOVERNMENTS CREATE CONVOLUTED TRADE LAWS THAT ALLOW THEM TO CONVICT ALMOST ALL FOREIGN COMPANIES AND YET DENY THAT THEY ARE SUBVERTING FREE TRADE THE CLINTON ADMINISTRATION SHOULD NOT RISK TORPEDOING A WORLD TRADE AGREEMENT IN A MISGUIDED ATTEMPT TO PREVENT FOREIGN COMPANIES FROM OFFERING LOW PRICES TO AMERICAN CONSUMERS MR BOVARD WRITES OFTEN ON TRADE SEE RELATED LETTER LETTERS TO THE EDITOR TO HAVE FREE TRADE WE NEED FAIR TRADE WSJ JAN 10 1994 9312090069 YY94 MM01 9401100152 931229 LEISURE & ARTS FAULKNERMANIA IN OLE MISS BY BARBARA ENSRUD OXFORD MISS THIS TOWN IN THE HILLS OF NORTHERN MISSISSIPPI IS THE HOME OF THE OLE MISS REBELS AND MEANS FOOTBALL TO MOST MISSISSIPPIANS BUT FOR AN INCREASING NUMBER OF PEOPLE IN THE REST OF THE WORLD FROM MOSCOW TO TOKYO TO NEW YORK OXFORD IS A LITERARY CENTER IT LURES A CONSTANT STREAM OF AUTHORS SCHOLARS CRITICS JOURNALISTS AND NUMEROUS OTHERS INVOLVED WITH THE WORLD OF THE BOOK OR CURIOUS ABOUT THE DEEP SOUTH AND ITS CULTURE THIS YEAR ALONE WILLIAM STYRON GEORGE PLIMPTON FRANK CONROY THOMAS MCGUANE GITA MEHTA JAY MCINERNEY BOBBIE ANN MASON AND JAYNE ANNE PHILLIPS JOINED RESIDENT WRITERS BARRY HANNAH AND LARRY BROWN AND FORMER RESIDENT WILLIE MORRIS TO READ OR SIGN THEIR WORK AT SQUARE BOOKS A TOP INDEPENDENT BOOK STORE THE MILLIONS WHO ARE FANS OF JOHN GRISHAM'S BESTSELLING LEGAL THRILLERS KNOW OXFORD IF THEY KNOW IT AT ALL AS MR GRISHAM'S ADOPTED HOME JUST AS MANY HOWEVER KNOW IT AS THE HOME OF WILLIAM FAULKNER ARGUABLY AMERICA'S MOST IMPORTANT WRITER EVERY AUGUST FAULKNER BUFFS WHETHER SERIOUS ACADEMICS OR SIMPLY THOSE WHO HAVE FALLEN UNDER THE SPELL OF HIS LANGUAGE AND HIS STRANGE COMPELLING TALES OF LIVES UNIQUELY SOUTHERN YET RESONANTLY UNIVERSAL CONVERGE ON OXFORD TO ATTEND THE ANNUAL FAULKNER AND YOKNAPATAWPHA CONFERENCE THIS YEAR THEY CAME FOR THE 20TH TIME NEARLY 300 STRONG FROM 35 STATES AND 17 COUNTRIES TO IMMERSE THEMSELVES IN FAULKNER'S WORLD THE MYTHIC AND THE REAL FAULKNER GREW UP IN OXFORD ROAMING THE HILLS WOODS AND RIVER BOTTOMS THAT SURROUND IT AND EVOKED THEM LATER IN THE BEAR HE ATTENDED OLE MISS BRIEFLY EVEN MORE BRIEFLY HE SERVED AS CAMPUS POSTMASTER UNTIL FORCED TO RESIGN FOR NOT BOTHERING TO DELIVER THE MAIL THE WORLD OF CHARACTER AND PLACE HE CREATED IN HIS NOVELS AND SHORT STORIES CAME DIRECTLY OUT OF THIS LITTLE POSTAGE STAMP OF SOIL HE CALLED HIS OWN YOKNAPATAWPHA COUNTY THE SETTING FOR MOST OF HIS FICTION AND THE TOWN OF JEFFERSON ARE THINLY VEILED RENDERINGS OF OXFORD AND LAFAYETTE COUNTY MOST OF THE PEOPLE WHO COME TO THE CONFERENCE COME AGAIN AND AGAIN DRAWN AS MUCH BY THE AMBIENCE OF THE SETTING AS THEY ARE BY WEIGHTY EXPOSITIONS OF THEORY ON THE MEANING OF ABSALOM ABSALOM OR THE SOUND AND THE FURY THEY VISIT ROWAN OAK MR FAULKNER'S ANTEBELLUM HOME AND WALK THE GROUNDS BENEATH MASSIVE CEDARS AND CENTURIESOLD MAGNOLIAS STROLL AROUND THE TOWN SQUARE WITH ITS IMMACULATE WHITE COURTHOUSE FIXED DEADCENTER THE OBLIGATORY MONUMENT TO THE CONFEDERATE SOLDIER STALWART IN FRONT OF IT ABOVE ALL AS FAULKNER WROTE THE COURTHOUSE THE CENTER THE FOCUS THE HUB OF THE COMMUNITY THEY VISIT THE MISSISSIPPI DELTA AN HOUR WEST TOWARD THE GREAT RIVER OR THE AUTHOR'S BIRTHPLACE IN NEARBY RIPLEY THE AUTHOR'S WORK IS QUOTED READ DRAMATIZED SET TO MUSIC EVEN PARODIED IN A FAUX FAULKNER CONTEST SO CONSTANTLY EVOKED IN FACT THAT BY DAY TWO OF THE SIXDAY EVENT ONE IS ALREADY STEEPED IN HIS PHRASING AND BEGINS TO THINK IN PARAGRAPHLENGTH SENTENCES WHAT MAKES THE FAULKNER CONFERENCE DIFFERENT FROM OTHER LITERARY OR PROFESSIONAL SYMPOSIA IS THE ARTFUL MIX OF THE SOCIAL THE CULTURAL AND THE SCHOLARLY A COMBINATION OFFERING MUCH MORE THAN THE USUAL INTELLECTUAL PROBE INTO SOME ASPECT OF AN AUTHOR'S WORK OPENING DAY SPONSORED JOINTLY BY THE UNIVERSITY OF MISSISSIPPI'S ENGLISH DEPARTMENT AND SOUTHERN CULTURE SETS THE TONE FOR THE WEEK IN KEEPING WITH THIS YEAR'S THEME FAULKNER AND THE ARTIST IT BEGAN WITH A RECEPTION AT THE UNIVERSITY MUSEUM FOR LOCAL ARTIST GLENRAY TUTOR WHOSE CONTEMPORARY PHOTOREALISTIC SCENES OF OXFORD RECORD THE TOWN AT A TIME LIKELY TO BE CONSIDERED THE MOST DYNAMIC IN ITS HISTORY TWO MUSICAL PRODUCTIONS BASED ON FAULKNER NOVELS OFFICIALLY LAUNCHED THE CONFERENCE SONGS BASED ON THE TEXT OF AS I LAY DYING FOLLOWED BY LIGHT IN AUGUST AN OPERA IN ONE ACT THEN IT WAS ON TO THE GROUNDS OF ROWAN OAK WHERE DEAN FAULKNER WELLS MR FAULKNER'S NIECE AND GUEST CELEBRITY JACK HEMINGWAY SON OF ERNEST GREETED THE WINNER OF THE FAUX FAULKNER ESSAY CONTEST BY COCKTAIL TIME IT WAS A SHORT STROLL ACROSS THE ROAD TO AN OUTDOOR SUPPER AT THE HOME OF ONE OF OXFORD'S LARGEST AND LIVELIEST FAMILIES THE HOWORTHS SPEAKERS CONFEREES TOWNSFOLK AND STUDENTS GATHERED UNDER THE LIVE OAKS AND MAGNOLIAS FOR SOUTHERNFRIED CATFISH HUSH PUPPIES AND A COPIOUS FLOW OF BOURBON BEER AND WINE AFTER A ONEACT DRAMATIZATION OF AS I LAY DYING THE DAY CONCLUDED WITH A PARTY AT SQUARE BOOKS PEOPLE WERE VERGING ON THE EUPHORIC BY THEN THE BASH WAS STILL IN FULL SWING WELL PAST MIDNIGHT BY 9 AM MONDAY MORNING HOWEVER THE EDUCATION AUDITORIUM WAS FULL FOR THE KEYNOTE ADDRESS BY PROFESSOR JOEL WILLIAMSON AUTHOR OF FAULKNER AND SOUTHERN HISTORY AND SO IT WENT THROUGHOUT THE WEEK INTELLECTUAL THEORY INTERSPERSED WITH PARTIES HOSTED BY UNIVERSITY OR TOWNSPEOPLE PANELS OF OLDER OXONIANS REMINISCING ABOUT FAULKNER'S LIFE IN THE TOWN IRONIC RATHER SINCE IT TOOK A NOBEL PRIZE IN 1950 TO CONVINCE MANY OXONIANS THAT MR FAULKNER WAS ANYTHING MORE THAN THE LOCAL NE'ER DO WELL COUNT NO 'COUNT WAS THE SOBRIQUET HE EARNED IN HIS EARLY 20S ATTENDING OLE MISS WHERE HIS DANDIFIED DRESS AND ASSUMED AIR OF THE QUASITRAGIC WORLDWEARY RAF VETERAN COMPLETE WITH AFFECTED BRITISH ACCENT REPELLED CLASSMATES AND RESIDENTS ALIKE ASKED HOW HE THOUGHT THE RETICENT MR FAULKNER WOULD REACT TO THE CONFERENCE DONALD KARTIGANER HOWRY PROFESSOR OF FAULKNER STUDIES AT OLE MISS REPLIED WITH A WRY GRIN I SUSPECT HE'D LEAVE TOWN THE 1994 CONFERENCE IS SET FOR JULY 31 TO AUG 6 THE THEME WILL BE FAULKNER AND GENDER AND THE CALL FOR PAPERS IS OUT MS ENSRUD IS A FREELANCE WRITER IN OXFORD SEE RELATED LETTER LETTERS TO THE EDITOR EVERYBODY WAS THERE BUT FAULKNER WSJ JAN 10 1994 9312290002 YY94 MM01 9401100140 931229 RULE OF LAW DOUBTS ABOUT A HEAD START IN THE PAPER CHASE BY SHAWN SULLIVAN NOW IS THE TIME OF YEAR WHEN MILLIONS OF STUDENTS ARE APPLYING TO COLLEGES AND UNIVERSITIES UNFORTUNATELY AS A COLLEGE SENIOR LOOKING TOWARD LAW SCHOOL I AM A PARTICIPANT IN THIS ORDEAL THE PROCESS IS MADE ALL THE HARDER FOR ME AS A BLACK STUDENT BY THE AFFIRMATIVE ACTION QUESTION A COUPLE OF YEARS AGO TIMOTHY MACGUIRE A STUDENT AT GEORGETOWN UNIVERSITY LAW CENTER WROTE AN ARTICLE IN WHICH HE DEMONSTRATED THAT MINORITY STUDENTS WERE ADMITTED TO GEORGETOWN EVEN THOUGH THEIR GRADES AND LAW SCHOOL APTITUDE TEST SCORES WERE SIGNIFICANTLY LOWER THAN THOSE OF WHITE STUDENTS THE ARTICLE WAS QUICKLY CONDEMNED FOR BEING RACIST BUT IT HAPPENED TO BE TRUE SINCE THEN MORE EVIDENCE CONCERNING THE ADMISSIONS POLICIES AT OTHER LAW SCHOOLS HAS CONFIRMED THAT QUOTAS OF ONE SORT OR ANOTHER ARE WIDESPREAD NOT SURPRISINGLY I'VE BEEN TOLD BY RELIABLE SOURCES THAT I AM A SHOOIN FOR STANFORD LAW SCHOOL ONE OF THE MOST SELECTIVE IN THE COUNTRY I'VE SPOKEN WITH NUMEROUS LAWSCHOOL STUDENTS WHO HAVE UNDERGONE THE ADMISSIONS PROCESS ALL OF WHOM REACHED THE SAME CONCLUSION THEY HAVEN'T TOLD ME THIS BECAUSE MY GRADES ARE ESPECIALLY GREAT OR BECAUSE I ACED THE LSAT BUT BECAUSE I AM A MODERATELY SUCCESSFUL BLACK STUDENT FOR ELITE LAW SCHOOLS THERE IS NO SUCH THING AS A SURE THING UNLESS YOU ARE A MEMBER OF A DISADVANTAGED GROUP STANFORD ADMITS LESS THAN A QUARTER OF THE APPLICANTS WHO HAVE GRADEPOINT AVERAGES HIGHER THAN A 375 IT ACCEPTS LESS THAN A THIRD OF THE APPLICANTS WITH LSAT SCORES BETWEEN 175 AND 180 OUT OF 180 SCORES THAT PLACE A STUDENT AMONG THE TOP 1 OF ALL THOSE WHO TAKE THE EXAM THUS A STELLAR STUDENT WITH AN A AVERAGE AND A 175 LSAT SCORE IS NOT AT ALL GUARANTEED A PLACE AT STANFORD IN FACT SUCH A STUDENT HAS A ONE IN TWO CHANCE AT BEING ADMITTED BY CONTRAST STANFORD WOULD INSTANTLY ACCEPT A BLACK STUDENT WITH THESE QUALIFICATIONS IN FACT SUCH A STUDENT WOULD BE FOUGHT OVER BY EVERY LAW SCHOOL IN THE COUNTRY EVEN A BLACK STUDENT WHO FINDS HIMSELF BELOW THE 375GPA RANGE AND WITH LSAT SCORES 10 POINTS LOWER THAN THE SUPERSTUDENT DESCRIBED ABOVE WOULD HAVE HIS PICKINGS OF ANY LAW SCHOOL THE AVERAGE STUDENT AT AMHERST COLLEGE WHERE I NOW GO TO SCHOOL WHO WAS ADMITTED TO YALE LAW IN 1992 SCORED 177 OUT OF 180 ON THE LSAT BUT MINORITY STUDENTS FROM AMHERST HAVE BEEN ADMITTED TO YALE WITH MORE THAN 10 POINTS BELOW THE AVERAGE LSAT WOULD ANY STUDENT BE OPPOSED TO HAVING SURE THING STATUS STANFORD SEEMS TO THINK SO ON ITS APPLICATION IT HAS A SPACE DESCRIBING THE SCHOOL'S MINORITY ADMISSION PROGRAM INDIVIDUALS BELONGING TO ANY OF THE FOLLOWING FOUR ETHNIC GROUPS ARE ELIGIBLE TO BE CONSIDERED UNDER THIS PROGRAM THE FOUR GROUPS ARE BLACKS AMERICAN INDIANS MEXICANAMERICANS AND PUERTO RICANS THE APPLICATION THEN GOES ON TO SAY APPLICANTS WHO FAIL TO RESPOND TO THIS QUESTION WILL NOT BE CONSIDERED UNDER THIS PROGRAM ANSWERING THIS QUESTION IS COMPLETELY OPTIONAL STANFORD LAW SCHOOL STATES BUT IS IT REALLY IS THERE AN OPTION FOR A LAW SCHOOL APPLICANT BETWEEN IMPROVING HIS CHANCES OF GETTING INTO LAW SCHOOL AND NOT ODDLY STANFORD'S APPLICATION HAS A GENERAL RACE CHECKOFF BOX FOR ALL APPLICANTS YET IT STILL FINDS THE NEED TO HAVE A SEPARATE ONE FOR SPECIAL MINORITY ADMISSIONS IN EFFECT A BLACK STUDENT HAS TO INDICATE HE'S BLACK TWICE ON HIS APPLICATION THIS PHENOMENON IS NOT EXCLUSIVE TO STANFORD GEORGETOWN'S APPLICATION STATES HOW WOULD YOU DESCRIBE YOURSELF RACIALLY THE LAW CENTER ACTIVELY RECRUITS STUDENTS FROM DIVERSE ETHNIC ECONOMIC AND EDUCATIONAL BACKGROUNDS NEW YORK UNIVERSITY'S LAW SCHOOL APPLICATION READS NYU SCHOOL OF LAW SEEKS TO ENROLL A STUDENT BODY FROM A BROAD SPECTRUM OF SOCIETY INCLUDING MEMBERS OF GROUPS UNDERREPRESENTED IN THE PROFESSION PLEASE INDICATE HERE ANY SUCH GROUP IN WHICH YOU WOULD INCLUDE YOURSELF BESIDE THESE QUESTIONS IN BOLD LETTERING IS THE WORD OPTIONAL THE MOST CONFUSING QUESTION OF THIS TYPE IS ON THE APPLICATION OF THE UNIVERSITY OF PENNSYLVANIA'S LAW SCHOOL IT GOES AS FOLLOWS THE UNIVERSITY OF PENNSYLVANIA SEEKS TO DRAW STUDENTS FROM DIVERSE BACKGROUNDS THE INFORMATION REQUESTED BELOW WILL BE USED TO EVALUATE THE EFFECTIVENESS OF OUR EFFORTS TO RECRUIT AND SELECT A DIVERSE STUDENT BODY THE INFORMATION IS CONFIDENTIAL AND COMPLETELY VOLUNTARY ANSWERING THE QUESTION OR THE OMISSION OF AN ANSWER WILL NOT INFLUENCE THE LAW SCHOOL'S DECISION ON ADMISSIONS ON THE ONE HAND PENN WANTS US TO THINK THAT IT IS COMMITTED TO ADMITTING MINORITY STUDENTS BUT ON THE OTHER HAND IF A STUDENT INDICATES THAT HE IS A MINORITY THIS FACT WILL NOT INFLUENCE HIS OR HER CHANCES OF BEING ACCEPTED OTHER SCHOOLS ARE LESS SHY ABOUT THE TWOTIER ADMISSIONS SYSTEM CREATED BY AFFIRMATIVEACTION THE APPLICATION OF CORNELL'S LAW SCHOOL STATES UNEQUIVOCALLY IN MAKING ADMISSIONS DECISIONS OUR ADMISSIONS COMMITTEE CONSIDERS MINORITY STATUS TO BE A POSITIVE FACTOR THIS IS GOOD TO HEAR BUT CORNELL'S MINORITY ADMISSIONS PROGRAM IS DIRECTED AT A VERY DEFINED SET OF MINORITY GROUPS THE MOST NOTABLE OMISSION BEING ASIANAMERICANS WHEN I APPLIED TO COLLEGES FOUR YEARS AGO THERE WAS NO SUCH THING AS AN OPTIONAL MINORITY ADMISSIONS PROGRAM SIMPLY BY INDICATING MY ETHNICITY ON THE GENERAL APPLICATION OF AMHERST WAS ENOUGH FOR ME TO BE INCLUDED UNDER ITS SPECIAL ADMISSIONS PROGRAM THIS POLICY PLACED MINORITY OPPONENTS OF AFFIRMATIVE ACTION IN A BIND OPPONENTS OF SUPREME COURT JUSTICE CLARENCE THOMAS FOR EXAMPLE ARGUE THAT HE HAS BENEFITED FROM THE VERY AFFIRMATIVEACTION POLICIES HE OPPOSES THIS IS TRUE UP TO A POINT THERE WAS NO OPTIONAL BOX ON HIS APPLICATION TO YALE LAW SCHOOL THAT HE CHOSE NOT TO MARK YET NO ONE CAN KNOW IF JUSTICE THOMAS WOULD HAVE BEEN ACCEPTED AT YALE HAD HE NOT INDICATED HIS RACE ON HIS APPLICATION AS AN OPPONENT OF AFFIRMATIVE ACTION I AM FACED WITH AN OPTION THAT JUSTICE THOMAS LACKED IF I DON'T WISH FOR MY RACE OR ETHNICITY TO BE A FACTOR IN MY SELECTION AT STANFORD ALL I HAVE TO DO IS NOT CHECK OFF THE BOX IN QUESTION BUT IN THE BACK OF MY MIND I REALIZE THAT THOUGH I AM QUALIFIED FOR STANFORD THIS ALONE IS NO GUARANTEE OF ACCEPTANCE IN LIGHT OF THIS MY FRIENDS THINK IT'S A CRAZY IDEA FOR ME TO JEOPARDIZE MY CHANCES OF ADMISSION BY NOT NOTING MY RACIAL BACKGROUND ON APPLICATIONS LAW SCHOOL ADMISSION IS SO ERRATIC THAT IT IS DIFFICULT FOR ME TO JUSTIFY TO THEM AND MYSELF NOT PROFITING FROM THE ADVANTAGE THAT AFFIRMATIVE ACTION OFFERS IN A WAY A POLICY THAT HAS BEEN MADE TO BE OPTIONAL DOES NOT OFFER THE MINORITY APPLICANT MUCH OF AN OPTION AT ALL MR SULLIVAN A FORMER JOURNAL EDITORIAL PAGE INTERN ATTENDS AMHERST COLLEGE SEE RELATED LETTER LETTERS TO THE EDITOR SAME OLD THING DIFFERENT NAME WSJ JAN 10 1994 9312290102 YY94 MM01 9401070156 931210 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY TIM CARRINGTON CLINTON AIMS TO COMPLETE BUDGET REVIEWS WITH CABINET BY END OF NEXT WEEK BUT A FIGHT IS EXPECTED OVER THE PENTAGON BUDGET BUDGET CHIEF PANETTA SAYS CLINTON HAS MADE A COMMITMENT THAT HE WANTS TO STICK TO DEFENSEBUDGET FIGURES LAID OUT LAST SPRING BUT CLINTON AIDES SEEK DEEPER CUTS TO PAY FOR INVESTMENTS ELSEWHERE WHILE THE PENTAGON WANTS MORE MONEY TO COVER INFLATION AND PAY RAISES THE GATT DEAL POSES A BUDGET QUANDARY A SUCCESSFUL CONCLUSION WILL REDUCE US TARIFF REVENUE BY BETWEEN 8 BILLION AND 9 BILLION OVER THE NEXT FIVE YEARS THE SEC EXPECTS ITS BUDGET TO RISE ONLY SLIGHTLY FROM ITS CURRENT 260 MILLION BUT FOR THE FIRST TIME ALL OF THAT IS TO COME FROM ISSUERS' FEES PANETTA SAYS NEW PROJECTIONS TENTATIVELY PUT THE FISCAL 1998 DEFICIT AT 150 BILLION DOWN FROM LAST FALL'S 180 BILLION ESTIMATE WHITE HOUSE STAFF UNEASE BODES ILL FOR CLINTON'S 1994 AGENDA DISORGANIZATION PROBLEMS PERSIST CRITICS INSIDE SEE THE NEW DEPUTY CHIEF OF STAFF PHILIP LADER AS A CLONE OF HIS WEAK GLADHANDING BOSS THOMAS MCLARTY MAGGIE WILLIAMS HILLARY RODHAM CLINTON'S ABLE TOP AIDE DIDN'T WANT THE JOB AN IMPENDING COLLISION BETWEEN THE HEALTHCARE BILL AND WELFARE OVERHAUL IS BARELY DISCUSSED SOME AIDES WANT WELFARE REFORM PASSED NEXT YEAR BUT PANETTA SAYS IT ISN'T LIKELY THE JOB OF CONGRESSIONAL LOBBYIST REMAINS UNFILLED FORMER HOUSE AIDE KIRK O'DONNELL DECLINED TOP CANDIDATES ARE LOBBYISTS PATRICK GRIFFIN AND RALPH NEAS ANTITRADE FORCES TAKE AIM AT GATT AND MAY FIND SOME CORPORATE ALLIES IF YOU THOUGHT THE BEDFELLOWS WERE STRANGE ON NAFTA IT WILL EVEN BE STRANGER WITH GATT SAYS ANGELA LEDFORD A TRADE ORGANIZER FOR THE CONSUMER GROUP PUBLIC CITIZEN INDUSTRIES LIKE STEEL SEMICONDUCTORS MOVIES AND PHARMACEUTICALS THREATEN TO JOIN THE CONSUMERENVIRONMENTALLABOR MAINSTAYS TO OPPOSE A GATT PACT THIRTYFIVE ANTINAFTA GROUPS FIRE OFF A LETTER TO PRESIDENT CLINTON WARNING THAT GATT WOULD BE A SIGNIFICANT STEP BACKWARD WHILE THE NAFTA BATTLE CRY WAS JOBS TO MEXICO THE ANTIGATT COMPLAINT WILL BE THAT THE DEAL CEDES POWER TO FACELESS BUREAUCRATS IN GENEVA MEANWHILE EXPECTED PROPONENTS LIKE BANKS MAY BE LUKEWARM SUPPORTERS BECAUSE THEY WOULD BE GETTING LESS THAN THEY WANTED ENVIRONMENTAL GROUPS WHILE SPLIT ON NAFTA UNIFORMLY HATE GATT TRADE AMBASSADOR KANTOR MEETS WITH THEM TO TRY TO AVOID A SHOWDOWN NO LITMUS TEST THE WHITE HOUSE WANTS JUDICIAL NOMINATIONS THAT SHOW IT DOESN'T INSIST ON ABORTIONRIGHTS ADVOCATES HOUSE MAJORITY LEADER GEPHARDT PUSHES A LONGTIME FRIEND STATE JUDGE GARY GAERTNER FOR A MISSOURI JUDGESHIP LIBERALS AND SOME ADMINISTRATION OFFICIALS OPPOSE HIM WILLIAM DOWNES ALSO COOL TO ABORTION RIGHTS APPEARS HEADED FOR A NOMINATION TO THE WYOMING FEDERAL BENCH REPUBLICANS WARN THAT A CLINTON PLAN TO CONSOLIDATE FOUR BANK REGULATORS INTO A NEW FEDERAL BANKING COMMISSION COULD MAKE BANK SUPERVISION HOSTAGE TO POLITICS REP LEACH SUGGESTS SUCH A COMMISSION MIGHT SOFTPEDAL POLITICALLY EMBARRASSING BANK PROBLEMS SUCH AS CLINTON'S CONNECTION TO THE HEAD OF A FAILED ARKANSAS S&L KOREA EXPERTS WORRY THAT PYONGYANG MAY DRAW THE WRONG LESSON FROM THE USLED WAR AGAINST IRAQ INTELLIGENCE ANALYSTS FRET THAT NORTH KOREA FAR FROM BEING DETERRED BY THE US SUCCESS MAY THINK A MILITARY CONFRONTATION WITH THE AMERICANS WON'T NECESSARILY TOPPLE THE REGIME PAYBACK TIME ARCHERDANIELSMIDLAND CO THE POLITICALLY ACTIVE AGRICULTURE GIANT PUSHED HARD FOR NAFTA AND NOW STANDS TO GAIN FROM A POSSIBLE WHITE HOUSE ORDER GRANTING ETHANOL A SUBSTANTIAL SHARE MAYBE 30 OF THE MARKET FOR EPAMANDATED REFORMULATED GASOLINE DWAYNE ANDREAS A LONGTIME REPUBLICAN ALLY HAS VISITED THE CLINTON WHITE HOUSE COLIN POWELL MAY BE BRUISED BY SENATE HEARINGS ON SOMALIA EARLY NEXT YEAR THE HUGELY POPULAR GENERAL WHO SOME TOUT AS A FUTURE PRESIDENT GAVE THE GREEN LIGHT FOR THE ILLSTARRED INTERVENTION AND PROVIDED MILITARY ADVICE ALONG THE WAY NONETHELESS 65 OF THOSE SURVEYED FOR A WALL STREET JOURNAL/NBC NEWS POLL SAID THEY HAD POSITIVE FEELINGS ABOUT THE GENERAL WHILE ONLY 5 WERE NEGATIVE THE RATINGS ARE ALMOST UNCHANGED FROM THOSE HE ENJOYED IN 1991 IN THE AFTERMATH OF THE US VICTORY OVER IRAQ I'D VOTE FOR POWELL FOR PRESIDENT I REALLY WOULD SAID ONE SENIOR US MILITARY OFFICER WHO SERVED IN SOMALIA BUT THE FACT OF THE MATTER IS THIS HAPPENED ON HIS WATCH DEFENSE SECRETARY ASPIN SAYS A FAIRLY SIGNIFICANT NUMBER OF THE 8173 TROOPS IN SOMALIA WILL START LEAVING BY CHRISTMAS MINOR MEMOS GERGEN JOKES AT A REPORTERS' DINNER THAT HE IS THE ONLY GUY IN TOWN WHO COULD DO THE CROSSFIRE SHOW ALL BY HIMSELF SHALOM SAUDI ARABIA BOUGHT 10000 WORTH OF TICKETS FOR AN AMERICAN JEWISH CONGRESS DINNER AT NEW YORK'S PLAZA HOTEL LAST NIGHT A WASHINGTON STORE SELLS WRAPPING PAPER FEATURING AN ELEPHANT DRESSED AS SANTA AND THE LEGEND MERRY CHRISTMAS ONLY 1122 DAYS UNTIL SLICK WILLIE GOES HOME AFTER BITTER WORDS OVER NAFTA CLINTON AND AFLCIO CHIEF LANE KIRKLAND ARE TO HOLD A RECONCILIATION MEETING TODAY AT THE WHITE HOUSE THE TELEPHONE NUMBER FOR A PAC OPPOSING OLLIE NORTH'S SENATE BID 1800NO NORTH THE TELEPHONE NUMBER FOR A POLITICAL ACTION COMMITTEE OPPOSING OLLIE NORTH'S SENATE BID IS 1703NORTHNO FRIDAY'S WASHINGTON WIRE COLUMN PROVIDED AN INCORRECT NUMBER SEE RELATED LETTER LETTERS TO THE EDITOR TOUGH ENOUGH WSJ JAN 7 1994 9312100085 YY94 MM01 9401070148 931227 FASCISM'S LENGTHENING SHADOW BY ARTHUR SCHLESINGER JR REMEMBER 1989 THAT WAS THE YEAR WE ALL CELEBRATED THE TRIUMPH OF LIBERAL DEMOCRACY THERE HAD BEEN THREEQUARTERS OF A CENTURY OF BITTER IDEOLOGICAL CONFLICT DEMOCRACY VS FASCISM DEMOCRACY VS COMMUNISM AND NOW AFTER WARS HOT AND COLD DEMOCRACY HAD EMERGED VICTORIOUS FASCISM PERISHING WITH A BANG COMMUNISM WITH A WHIMPER THAT YEAR WAS ALSO THE 200TH ANNIVERSARY OF THE FRENCH REVOLUTION AND THE WORLD SEEMED POISED AT LAST ON THE BRINK OF UNIVERSAL LIBERTE EGALITE FRATERNITE WE BEGAN IN OUR VAINGLORY TO SUPPOSE THAT WITH THE COLLAPSE OF THE TOTALITARIAN ALTERNATIVES LIBERAL DEMOCRACY WAS AT LAST HOME FREE THOSE WERE THE DAYS WHEN PEOPLE TALKED ABOUT THE END OF HISTORY WE SHOULD HAVE KNOWN BETTER FOR LIBERAL DEMOCRACY HAD HAD MOMENTS OF TRIUMPH BEFORE AT THE START OF THE 20TH CENTURY THE GREAT HISTORICAL CURRENTS SEEMED TO BE SWEEPING THE WORLD IRRESISTIBLY TOWARD DEMOCRACY BUT SOON DISILLUSION SET IN THE GREAT WAR SHOWED THAT DEMOCRACY COULD NOT GUARANTEE PEACE AND THE GREAT DEPRESSION SHOWED THAT DEMOCRACY COULD NOT GUARANTEE ABUNDANCE THE MILLENNIAL CREEDS OF FASCISM AND COMMUNISM AROSE TO PROMISE A NEW HEAVEN AND A NEW EARTH DEMOCRACY WAS SOON ON THE DEFENSIVE ITS BACK TO THE WALL FIGHTING FOR ITS VERY LIFE THE TOTALITARIAN GOSPEL APPEALED TO THE FEARS OF THE RICH THE FRUSTRATIONS OF THE MIDDLE CLASS THE YEARNINGS OF THE WORKERS THE ILLUSIONS OF THE INTELLECTUALS TOTALITARIANISM APPEARED IN ANNE MORROW LINDBERGH'S VOGUISH PHRASE OF 1940 AS THE WAVE OF THE FUTURE BY 1942 THERE WERE ONLY ABOUT A DOZEN DEMOCRACIES LEFT IN THE WORLD THE FAILURES OF FREEDOM HAD HANDED THE INITIATIVE TO THE AUTHORITARIAN FAITHS THIS COULD HAPPEN AGAIN IF LIBERAL DEMOCRACY FAILS NOW AS IT FAILED BEFORE TO CONSTRUCT A HUMANE PROSPEROUS AND PEACEFUL WORLD THEN AS BEFORE THAT FAILURE INVITES THE RISE OF NEW TOTALITARIAN CREEDS BASED LIKE FASCISM AND COMMUNISM ON THE ABOLITION OF INDIVIDUAL FREEDOM COMMUNISM IS TOO IMMEDIATE A MEMORY AND TOO DISCREDITED A MOVEMENT TO HAVE MUCH APPEAL FOR THE TIME BEING BUT THE HORRORS OF THE FASCIST VERSION OF TOTALITARIANISM HAVE GROWN DIM IN MANY MINDS AND THUGGISH NATIONALISM IS A STIMULANT FOR CONFUSED AND DESPERATE PEOPLE NEOFASCISM SEEMS ESPECIALLY TO IMPRESS THE YOUNG WHO IN ALL LANDS APPEAR TO LACK HISTORICAL KNOWLEDGE AND CURIOSITY PERHAPS BACK IN 1989 WE SHOULD HAVE THOUGHT HARDER ABOUT THE DEGENERATION OF THE FRENCH REVOLUTION AFTER ALL THE RADIANT PROMISE OF 1789 GAVE WAY ALL TOO SOON TO THE REIGN OF TERROR OF 1793 THIS IS THE ANNIVERSARY WE MUST NOTE TODAY SO WE CONFRONT THE UNEXPECTED UPSURGE OF DEMAGOGIC AND NATIONALIST AUTHORITARIANISM IN THE RUSSIAN ELECTION VLADIMIR ZHIRINOVSKY SEEMS TOO LOONY TO HAVE MUCH STAYING POWER THOUGH OF COURSE THAT IS WHAT PEOPLE USED TO SAY ABOUT HITLER BUT THE FEARS AND FRUSTRATIONS HE TAPPED SO EFFECTIVELY WILL BE AROUND FOR A LONG TIME TO COME AND IN MANY COUNTRIES FOR THE RUSSIAN OUTCOME IS NOT UNIQUE NEOFASCISM HAS ALREADY HAD SURPRISING SUCCESS IN THE RECENT ITALIAN ELECTIONS IT IS TAKING VIOLENT FORMS IN GERMANY SERBIA IS DEVELOPING ITS OWN BRAND XENOPHOBIA ANTISEMITISM SKINHEAD VIOLENCE NEOFASCIST UNDERGROUNDS ARE ON THE INCREASE EVERYWHERE IN EUROPE EVEN IN SUCH GENERALLY SANE COUNTRIES AS BRITAIN AND SWEDEN AND THE NEOFASCISTS ARE BEGINNING TO FORM AN INTERNATIONAL MOVEMENT MR ZHIRINOVSKY ATTENDS THE CONVENTIONS OF THE GERMAN PEOPLE'S UNION AND REFERS TO THIS CROWD OF BAVARIAN FANATICS AS HIS GERMAN PARTNER LOUIS J FREEH OUR OWN NEW FBI DIRECTOR GOES TO GERMANY TO LOOK INTO CONNECTIONS WITH AMERICAN NEONAZIS LIKE GARY LAUCK OF NEBRASKA THE SOCALLED FARM BELT FUHRER THE KU KLUX KLAN AND THE LYNDON LAROUCHE GANG ARE BUSY IN GERMANY AND ELSEWHERE IN EUROPE THE ASSAULT ON DEMOCRACY TAKES OTHER FORMS IN OTHER CONTINENTS MUSLIM FUNDAMENTALISM IS A MAJOR THREAT IN TURKEY IN EGYPT ALONG THE MAGREB AUTHORITARIAN IMPULSES ARE EVEN GROWING IN OUR BLESSED UNITED STATES THE RELIGIOUS FUNDAMENTALISTS ON THE FAR RIGHT AND THE POLITICAL CORRECTNESS ZEALOTS ON THE FAR LEFT DISAGREE IN DETAIL BUT AGREE ON THE DUTY TO SUPPRESS SPEECH THEY DO NOT LIKE AND TO PUNISH PEOPLE OF WHOM THEY DISAPPROVE MR ZHIRINOVSKY IS NOT ALONE IN THE WORLD BUT HIS SUCCESS IN RUSSIA IS PARTICULARLY DISQUIETING IT IS TOO SOON TO KNOW WHAT IMPACT THE POSSIBILITY OF NEOFASCIST LEADERSHIP IN MOSCOW WILL HAVE ON WESTERN AID TO RUSSIA ON THE CONTROL OF NUCLEAR WEAPONS WITHIN THE OLD SOVIET UNION ON UKRAINE AND OTHER NEWLY INDEPENDENT STATES THREATENED BY NEOFASCIST AMBITIONS NOT TO MENTION THE STIMULUS TO NEOFASCIST MOVEMENTS ELSEWHERE WE CAN BE SURE THAT THERE IS PLENTY OF TURBULENCE AHEAD HOW TO ACCOUNT FOR MR ZHIRINOVSKY'S SUCCESS HISTORY HAS NOT ENDOWED RUSSIA WITH A DEMOCRATIC CULTURE AND THE ARTS AND HABITS OF DEMOCRACY ARE NOT EASY TO ACQUIRE THE RUSSIAN MASSES ARE ACCUSTOMED TO DESPOTISM WHETHER OF CZARS OR COMMISSARS AND AS DOSTOEVSKY'S GRAND INQUISITOR REMINDS US ARE FEARFUL OF FREEDOM THE HONEST DEMOCRATS AND THERE ARE MANY OF THEM IN THE NEW RUSSIA HAVE YET TO UNDERSTAND THE VIRTUES OF COMPROMISE AND COALITION DEMOCRATIC DISUNITY GUARANTEES WEAKNESS BORIS YELTSIN'S OWN ACTIONS HAVE TENDED TO UNDERMINE RATHER THAN TO STRENGTHEN DEMOCRATIC PROCESSES BUT THE BASIC RUSSIAN PROBLEM IS ECONOMIC DISTRESS AND HERE THE WEST MUST SHARE PART OF THE BLAME THE GREAT FALLACY IN RUSSIAN ECONOMIC POLICY HAS BEEN THE ASSUMPTION THAT BECAUSE JOSEPH STALIN WAS WRONG MILTON FRIEDMAN MUST BE RIGHT MR ZHIRINOVSKY IS THE UNANTICIPATED BENEFICIARY OF THE ILLUSION THAT THE LAISSEZFAIRE MARKET IS THE MIRACLE CURE FOR ALL ECONOMIC TROUBLES THIS ILLUSION HAS GIVEN RUSSIA A STRONG DOSE OF FREEBOOTING EXPLOITATIVE HARDHEARTED 19THCENTURY CAPITALISM THE RESULT THE INCREASING GAP BETWEEN RICH AND POOR INCREASING SPECULATION AND PECULATION INCREASING CORRUPTION INCREASING CRIME INCREASING MISERY INCREASING RESENTMENT INCREASING NATIONAL HUMILIATION RUSSIA TODAY IS REPRODUCING THE VERY CONDITIONS THAT LED MARX AND ENGELS A CENTURY AND A HALF AGO TO WRITE THE COMMUNIST MANIFESTO IF CAPITALISM HAD REMAINED STUCK IN THOSE VICTORIAN CONDITIONS MARX'S PREDICTION OF INTENSIFIED CLASS WARFARE AND CAPITALISM DESTROYED BY ITS INTERNAL CONTRADICTIONS MIGHT VERY WELL HAVE BEEN FULFILLED WHAT SAVED CAPITALISM FROM THE MARXIST FATE WERE THE DEMOCRATIC REFORM MOVEMENTS THAT HUMANIZED THE LAISSEZFAIRE MARKET GAVE IT A MEASURE OF SOCIAL RESPONSIBILITY INTRODUCED THE SOCIAL SAFETY NET DEVISED ANTIDEPRESSION REMEDIES REDUCED THE GAP BETWEEN RICH AND POOR AND IN GENERAL RESCUED CAPITALISM FROM THE CAPITALISTS THE MARKET IS AN ECONOMIC NECESSITY IT IS THE MOST POWERFUL ENGINE AVAILABLE FOR PRODUCTION AND DISTRIBUTION BUT THE MARKET CAN SURVIVE POLITICALLY ONLY WHEN IT BECOMES WHAT GERMANS CALL A SOCIAL MARKET OR WHAT AMERICANS KNOW AS THE POSTNEW DEAL MARKET THE BIGBANG ENTHUSIASTS FORGET THE LESSONS OF HISTORY WHEN THEY CALL ON GOVERNMENTS IN THE EXSOVIET UNION AND EASTERN EUROPE TO LEAP TO AN UNCONTROLLED MARKET WITHOUT REGARD FOR THE HUMAN DEBRIS LEFT IN THE WAKE BY REPRODUCING THE EVILS OF VICTORIAN CAPITALISM THEY CARELESSLY PREPARE THE GROUND FOR NEOFASCISM HAD WESTERN AND RUSSIAN ECONOMISTS DEVOTED THEIR SKILL AND INGENUITY TO WORKING OUT THE PASSAGE TO A FREE MARKET WITHOUT THESE INORDINATE HUMAN AND SOCIAL COSTS VLADIMIR ZHIRINOVSKY TODAY WOULD BE AN UNKNOWN CRANK SNARLING TO A DOZEN OTHER SEEDY FANATICS IN SOME NEIGHBORHOOD VODKA PARLOR MR SCHLESINGER IS ALBERT SCHWEITZER PROFESSOR OF HUMANITIES AT THE CITY UNIVERSITY OF NEW YORK AND A WINNER OF PULITZER PRIZES IN HISTORY AND BIOGRAPHY HE IS A MEMBER OF THE JOURNAL'S BOARD OF CONTRIBUTORS SEE RELATED LETTERS LETTERS TO THE EDITOR IT'S RUSSIAN BUT IT ISN'T CAPITALISM WSJ JAN 7 1994 9312270004 YY94 MM01 9401070061 931231 THE BUSINESS OF LAW LEGAL BEAT COURTS ARE RAISING THE BAR FOR EMPLOYEE SUITS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL FEARFUL SHE WAS ABOUT TO BE FIRED BECAUSE OF HER AGE AFTER 40 YEARS AS A SECRETARY WITH THE SAME COMPANY CHRISTINE MCKENNON DECIDED TO FIGHT BACK SHE TOOK HOME COPIES OF COMPANY FINANCIAL RECORDS PORED OVER THEM WITH HER HUSBAND AND CONTEMPLATED A LAWSUIT THAT TURNED OUT TO BE A SERIOUS MISTAKE WHEN MRS MCKENNON THEN 63 YEARS OLD SUED FOR AGE DISCRIMINATION AFTER THE NASHVILLE BANNER PUBLISHING CO DISMISSED HER THREE YEARS AGO HER CASE NEVER GOT TO TRIAL THE REASON SINCE THE UNAUTHORIZED REMOVAL AND PHOTOCOPYING OF COMPANY RECORDS IS GROUNDS FOR FIRING MRS MCKENNON WAS NOT ALLOWED TO CLAIM SHE WAS FIRED BECAUSE OF HER AGE THAT ARGUMENT UPHELD BY A FEDERAL APPEALS COURT IN CINCINNATI LAST MONTH IS THE LATEST IN A STRING OF DECISIONS THAT HAVE PUT PLAINTIFFS' EMPLOYMENT LAWYERS ON THE DEFENSIVE WRONGFUL CONDUCT BY EMPLOYEES EVEN IF DISCOVERED AFTER THEY'VE BEEN DISMISSED CAN VOID DISCRIMINATION CLAIMS NO MATTER HOW WELLFOUNDED IN MRS MCKENNON'S CASE THE COMPANY DIDN'T FIND OUT ABOUT THE REMOVAL OF THE DOCUMENTS UNTIL ITS LAWYERS QUESTIONED HER DURING PRETRIAL FACTFINDING IN HER SUIT AS A RESULT COMPANIES SUED BY EXEMPLOYEES ARE PAYING EXTRA ATTENTION TO PRETRIAL FACTFINDING AND ARE BEEFING UP BACKGROUND INVESTIGATIONS OF PLAINTIFFS THEY'RE EVEN CHECKING REFERENCES LISTED ON RESUMES AND ANSWERS ON JOB APPLICATIONS I THINK THE MESSAGE FOR EMPLOYERS IS THAT ONCE LITIGATION COMMENCES THEY MUST REALLY TAKE A VERY CLOSE LOOK AT ALL INFORMATION AVAILABLE TO THEM ABOUT FORMER EMPLOYEES SAYS SHERYL J WILLERT AN EMPLOYMENT LAWYER WHO REPRESENTS COMPANIES AT THE SEATTLE LAW FIRM WILLIAMS KASTNER & GIBBS IN THE PAST SOME COURTS HAVE RULED THAT SUCH EVIDENCE DISCOVERED AFTER A FIRING WAS RELEVANT ONLY IN DETERMINING HOW MUCH BACK PAY EMPLOYEES WERE DUE BUT MORE RECENTLY AND INCREASINGLY COURTS ARE RULING THAT THIS SOCALLED AFTERACQUIRED EVIDENCE CAN BAR DISCRIMINATION CLAIMS ALTOGETHER FEDERAL DISTRICT AND APPEALS COURTS COVERING 15 STATES INCLUDING NEW YORK ILLINOIS OHIO AND MICHIGAN HAVE ENDORSED THE VIEW THAT CIVIL RIGHTS STATUTES DON'T PROTECT FIRED EMPLOYEES IF THEIR CONDUCT WOULD HAVE GOTTEN THEM FIRED HAD THEIR EMPLOYERS KNOWN ABOUT IT NOT SURPRISINGLY PLAINTIFFS LAWYERS AREN'T HAPPY ABOUT THE DEVELOPMENT IT'S BEEN CONTRIVED BY MANAGEMENT ATTORNEYS TO GET AROUND THESE CIVIL RIGHTS STATUTES COMPLAINS NASHVILLE TENN ATTORNEY MICHAEL E TERRY MRS MCKENNON'S ATTORNEY LAWYERS WHO REPRESENT MANAGEMENT COUNTER THAT EMPLOYEES SHOULDN'T BE ALLOWED TO GET AWAY WITH GROSS MISCONDUCT SIMPLY BECAUSE IT WAS DISCOVERED AFTER THEY WERE FIRED THE BOTTOM LINE IS SOMEONE SHOULD NOT BE ABLE TO ENGAGE IN MISCONDUCT THAT WOULD RESULT IN TERMINATION AND BRING A SUIT THAT THEY WOULDN'T HAVE BEEN ABLE TO BRING IN THE FIRST PLACE SAYS DEFENSE ATTORNEY R EDDIE WAYLAND WHO REPRESENTS THE NASHVILLE BANNER LAST YEAR A FEDERAL JUDGE IN PHOENIX ARIZ DISMISSED AN AGEDISCRIMINATION COMPLAINT BROUGHT BY DENNIS V O'DAY A FORMER ENGINEER AT MCDONNELL DOUGLAS HELICOPTER COMPANY A UNIT OF ST LOUISBASED MCDONNELL DOUGLAS CORP ANGRY BECAUSE HE WAS PASSED OVER FOR A PROMOTION AND ANTICIPATING A LAYOFF MR O'DAY THEN 46 TOOK HIS PERSONNEL FILE FROM HIS SUPERVISOR'S OFFICE WITHOUT AUTHORIZATION AND PHOTOCOPIED IT AFTER MR O'DAY WAS FIRED A MONTH LATER AND FILED SUIT LAWYERS FOR MCDONNELL DOUGLAS ARGUED THAT HE WAS BARRED FROM SUING EVEN IF THE COMPANY WAS GUILTY OF AGE DISCRIMINATION THE COMPANY WOULD HAVE FIRED HIM IMMEDIATELY HAD IT KNOWN THAT HE HAD VIOLATED POLICY BY TAKING THE RECORDS THE JUDGE RULED THE COURT IS SAYING LOOK WHETHER OR NOT THERE WAS A WRONG COMMITTED HERE YOU STILL WOULD HAVE BEEN FIRED BECAUSE OF WHAT YOU DID' SAYS TIBOR NAGY JR MR O'DAY'S LAWYER AT THE TUCSON LAW FIRM SNELL & WILMER EVIDENCE OF WRONGDOING DISCOVERED AFTER A SUIT WAS FILED HAS POPPED UP MOSTLY IN CASES WHERE EXEMPLOYEES WERE FOUND TO HAVE LIED ON THEIR JOB APPLICATIONS OR RESUMES A FEW COURTS HAVE RULED THAT THIS RESUME FRAUD SHOULD NOT BE GROUNDS FOR BARRING RECOVERY IN A DISCRIMINATION SUIT LAST YEAR FOR EXAMPLE THE 11TH CIRCUIT US COURT OF APPEALS IN ATLANTA RULED THAT A CONSTRUCTION WORKER WHO LIED ABOUT A PRIOR DRUG CONVICTION ON HER JOB APPLICATION SHOULD BE ABLE TO RECOVER SOME BACK PAY ATTORNEY FEES AND NOMINAL DAMAGES IF SHE COULD PROVE SEX DISCRIMINATION LED TO HER FIRING THE COURT REASONED THAT BARRING ALL DAMAGES WOULD PERMIT COMPANIES TO SKIRT CIVILRIGHTS LAWS AND SKIMP ON RESOURCES FOR ENDING DISCRIMINATION THE 11TH CIRCUIT INCLUDES FLORIDA GEORGIA AND ALABAMA SIMILARLY IN A CASE INVOLVING A FIRED ATLANTIC CITY CASINO WORKER A FEDERAL JUDGE IN CAMDEN NJ RULED IN JULY THAT EMPLOYEES WHO LIE ON RESUMES CAN'T BE REINSTATED OR GET FUTURE COMPENSATION BUT STILL ARE ENTITLED TO BACK PAY IF THEY PROVE DISCRIMINATION BARRING ALL DAMAGE AWARDS WROTE US DISTRICT JUDGE JOHN F GERRY COULD FORCE EMPLOYEES TO QUIETLY ENDURE DISCRIMINATORY TREATMENT RATHER THAN COMPLAIN REGARDLESS OF HOW LONG AGO THE MISCONDUCT OCCURRED OR ITS TRIVIALITY BUT MOST COURTS THAT HAVE ADDRESSED THE ISSUE HAVE NOT BEEN AS GENEROUS IN JANUARY A FEDERAL JUDGE IN AUSTIN TEXAS BARRED ANY DAMAGES FOR A WOMAN WHO CLAIMED AGE AND SEX DISCRIMINATION LED TO HER FIRING AT FISHER ROSEMONT SYSTEMS INC A SYSTEMS CONTROLS MANUFACTURING FIRM IN AUSTIN THE WOMAN HAD CHECKED NO WHEN ASKED ON A JOB APPLICATION ABOUT PRIOR CRIMINAL CONVICTIONS AT THE TIME SHE WAS ON PROBATION FOR THEFT SINCE THE APPLICATION FORM SAID THAT MISSTATEMENTS WOULD BE GROUNDS FOR DISMISSAL THE JUDGE IN THE CASE DISMISSED THE SUIT THE CASE OF MRS MCKENNON WHICH IS BEING APPEALED TO THE SUPREME COURT IS NOTEWORTHY BECAUSE IT HINGES ON WRONGFUL CONDUCT ON THE JOB NOT MISREPRESENTATIONS ON HER JOB APPLICATION A STELLAR EMPLOYEE ACCORDING TO HER ATTORNEY MRS MCKENNON WAS SECRETARY FOR THE NASHVILLE BANNER'S COMPTROLLER IN 1989 WHEN RUMORS BEGAN FLYING THAT LAYOFFS WERE IMMINENT BECAUSE OF DECLINING REVENUE MRS MCKENNON MADE COPIES OF THE COMPANY PAYROLL LEDGER PROFIT AND LOSS STATEMENT SEVERAL INTERNAL MEMORANDUMS AND THE COPY OF A CONTRACT WITH A COMPANY EXECUTIVE VICEPRESIDENT WHO HAD RECENTLY BEEN PROMOTED ALL THE CONFIDENTIAL DOCUMENTS WERE FROM THE COMPTROLLER'S OFFICE AND WERE SUPPOSED TO HAVE BEEN SHREDDED A YEAR LATER MRS MCKENNON WAS AMONG 11 EMPLOYEES TWO OF WHOM WERE OVER AGE OF 40 WHO WERE FIRED WHAT SHE WAS LOOKING FOR WAS TO DETERMINE WHETHER IT WAS TRUTHFUL WHAT SHE WAS HEARING WHICH WAS THAT THE BANNER WAS IN FINANCIAL DIFFICULTY THAT WAS GOING TO CAUSE LAYOFFS SAYS MR TERRY HER LAWYER BUT ACCORDING TO THE BANNER'S LAWYER MRS MCKENNON WAS SIMPLY BEING NOSY IN CLEAR VIOLATION OF COMPANY RULES SAYS MR WAYLAND SHE SHOULDN'T BE REWARDED FOR HER MENDACITY OR HER ABILITY TO GET AWAY FOR GROSS MISCONDUCT BECAUSE IT WASN'T DISCOVERED AT THE TIME KRAFT GENERAL FOODS INC WON THE RIGHT TO STOP A COMPETITOR FROM USING THE BRAND NAME PENNSYLVANIA ON CREAM CHEESE SOLD IN ARGENTINA BRAZIL AND URUGUAY IN A PRETRIAL RULING US JUDGE WILLIAM DITTER SAID BONGRAIN CHEESE USA A NEW HOLLAND PA CHEESE MAKER DELIBERATELY TRIED TO CONFUSE SOUTH AMERICAN CUSTOMERS INTO BUYING ITS OWN CREAM CHEESE RATHER THAN THE PHILADELPHIA BRAND MARKETED BY KRAFT A PHILIP MORRIS COS UNIT A LAWYER FOR BONGRAIN DECLINED TO COMMENT CONSUMERS AREN'T AS CAREFUL IN PURCHASING CREAM CHEESE AS THEY WOULD BE IN BUYING EXPENSIVE DURABLE GOODS THE JUDGE WROTE CITING EVIDENCE THAT THE AVERAGE ARGENTINE CUSTOMER SPENDS ABOUT 20 MINUTES IN THE SUPERMARKET EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE RESULT HER AGE DISCRIMINATION SUIT NEVER CAME TO TRIAL BECAUSE PURLOINING COMPANY RECORDS IS A FIRING OFFENSE ACTION ANTICIPATING A LAYOFF HE TOOK HIS PERSONNEL FILE FROM SUPERVISOR'S OFFICE RESULT BARRED FROM SUING FOR AGE DISCRIMINATION BECAUSE COMPANY WOULD HAVE FIRED HIM IMMEDIATELY HAD IT KNOWN HE HAD TAKEN THE RECORDS TIBOR NAGY JR OF THE TUCSON ARIZ LAW FIRM SNELL & WILMER REPRESENTED MCDONNELL DOUGLAS HELICOPTER CO A UNIT OF MCDONNELL DOUGLAS CORP IN A WRONGFULTERMINATION SUIT THAT WAS DESCRIBED IN AN ARTICLE LAST FRIDAY THE ARTICLE INCORRECTLY REPORTED THAT MR NAGY REPRESENTED THE PLAINTIFF IN THE CASE 9401070030 931206 RED MERCURY IS HOT BUT THE QUESTION IS WHAT EXACTLY IS IT A RUSSIAN SCIENTIST HAWKS IT FOR BIG MONEY HE SAYS WITH YELTSIN'S SANCTION BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL YEKATERINBURG RUSSIA IT IS THE MOST DANGEROUS SUBSTANCE ON THE WORLD MARKET PROMISING A WAY FOR ROGUE NATIONS TO LEAPFROG INTO THE NUCLEAR CLUB OR IT'S AN ELABORATE HOAX TAKE YOUR PICK THE SUBSTANCE IS RED MERCURY A MATERIAL WITH AN AURA OF MYSTERY AND INTERNATIONAL INTRIGUE SHADOWY RUSSIAN BUSINESSMEN VIE FOR LICENSES TO EXPORT IT TO BUYERS IN AFRICA ASIA AND THE MIDDLE EAST BUT NOBODY IS SAYING EXACTLY WHAT RED MERCURY IS OR EVEN EXACTLY HOW IT MIGHT BE USED THE STUFF ITS MAKERS CLAIM IS THE BREAKTHROUGH INGREDIENT FOR MAKING CUTRATE NUCLEAR BOMBS AS SMALL AS WATERMELONS BY VARIOUS ACCOUNTS IT CAN ALSO PRODUCE ANTIRADAR COATINGS OR PROPEL ROCKETS IF IT'S FAKE THEN WHY ARE BUSINESSMEN IN THE FORMER SOVIET UNION SIGNING CONTRACTS FOR RED MERCURY THAT IN SOME INSTANCES INVOLVE BILLIONS OF DOLLARS OLEG SADYKOV IS MORE THAN JUST A BELIEVER THE 39YEAROLD SCIENTIST CLAIMS TO HAVE BEEN PRODUCING RED MERCURY A COMPLICATED SYNTHESIS OF MERCURY AND OXIDIZED ANTIMONY FOR MORE THAN A YEAR AT HIS FACTORY IN THE URALS WHILE MANY SCIENTISTS ARE SUSPICIOUS ABOUT RED MERCURY'S TOUTED PROPERTIES THE CLAIMS OF THE LATTERDAY ALCHEMIST HAVE GARNERED CONSIDERABLE ATTENTION FOR MR SADYKOV'S COMPANY PROMEKOLOGIA A SMALL AND UNPROFITABLE ENVIRONMENTAL CONCERN PROMEKOLOGIA'S MAIN EARLIER ACTIVITY HAD BEEN A FEEBLE ATTEMPT TO GROW TOMATOES IN PERMAFROST A VISIT TO PROMEKOLOGIA'S OFFICES IN YEKATERINBURG MERELY DEEPENS THE MYSTERY HEAVY STEEL DOORS AND AN UNSMILING SECURITY DETAIL DENY ENTRY TO A VISITOR BUT ALEXANDER POPOV A DISHEVELED CHEMICAL ENGINEER FINALLY EMERGES FROM PROMEKOLOGIA'S SECURE INNER SANCTUM AND LEADS HIS VISITOR PAST A NUMBER OF STARKLY EMPTY OFFICES TO A CONFERENCE ROOM GAINING ACCESS TO THIS PLACE HOWEVER DOESN'T MEAN GETTING TO SEE A SAMPLE OF THE FABLED SUBSTANCE SIX HUNDRED MILES WEST IN AN APARTMENT IN MOSCOW MR SADYKOV TURNS OUT TO BE SOMEWHAT MORE FORTHRIGHT PROMEKOLOGIA'S DIRECTOR SAYS HE HAS PRODUCED A TEST BATCH OF FIVE KILOGRAMS OF RED MERCURY 2020 THAT HE SAYS WOULD FETCH 300000 A KILOGRAM ON THE WORLD MARKET IT IS SUMS LIKE THAT AND OUTLANDISH CLAIMS FOR THE SUBSTANCE THAT MAKE MANY IN THE INTERNATIONAL SCIENTIFIC COMMUNITY SKEPTICAL TAKE A BOGUS MATERIAL GIVE IT AN ENIGMATIC NAME EXAGGERATE ITS PROPERTIES MIX IN SOME INTRIGUE AND VOILA A HALFBAKED SCAM SAYS VIC HOGSETT TECHNOLOGY ANALYST AT THE US NUCLEARWEAPONS RESEARCH CENTER IN LOS ALAMOS NM WESTERN EXPERTS DON'T BELIEVE IT CONCEDES MR SADYKOV A TALL MAN WITH INTENSE EYES AND A PENCHANT FOR DARK SUITS AND FLASHY PINK TIES BUT REMEMBER FIVE MINUTES BEFORE PLASTIC WAS FIRST SYNTHESIZED SCIENTISTS DIDN'T BELIEVE THAT WAS POSSIBLE EITHER MR SADYKOV HOWEVER HAS NO RED MERCURY ON HAND TO SHOW OFF THE DIRECTOR DOES PRODUCE TWO CURIOUS DOCUMENTS BOTH OF WHICH TURN OUT TO BE AUTHENTIC THE FIRST IS A CLASSIFIED DECREE FROM MR SADYKOV'S LONGTIME ACQUAINTANCE BORIS YELTSIN ISSUED LAST YEAR THE DECREE GRANTS PROMEKOLOGIA THE EXCLUSIVE RIGHT TO PRODUCE BUY AND EXPORT RED MERCURY FOR A PERIOD OF THREE YEARSTAX FREE THE RUSSIAN PRESIDENT THUS WOULD SEEM TO BE A BELIEVER TOO THE SECOND DOCUMENT IS EVEN MORE IMPRESSIVE IT IS A CONTRACT PROMEKOLOGIA SIGNED LAST MARCH TO EXPORT 84 TONS OF RED MERCURY FOR 242 BILLION NOT BAD FOR A COMPANY WITH SALES LAST YEAR OF 1200 THE BUYER IS A CONCERN IN VAN NUYS CALIF REGISTERED AS API INTERNATIONAL INC MR SADYKOV SAYS THE COMPANY IS A PURCHASING FRONT FOR ABOUT 50 FORTUNE 500 CORPORATIONS THAT PLAN TO USE RED MERCURY FOR PEACEFUL PURPOSES HE DECLINES TO SAY JUST WHAT THEY MIGHT BE EFFORTS TO TRACK DOWN API LEAD TO A CARPARTS SHOP IN SUBURBAN LOS ANGELES THERE API'S PRESIDENT JC GODINEZ REFERS ALL QUESTIONS TO HIS NEW YORK CITY LAWYER EDWARD SOUSA I WAS NERVOUS WHEN I FIRST GOT INVOLVED SAYS MR SOUSA WHO ARRANGES A MEETING AT MIDNIGHT IN A MANHATTAN HOTEL I DIDN'T WANT TO DEAL WITH ANYTHING THAT WOULD BLOW UP THE WORLD ONCE CONVINCED THAT RED MERCURY WASN'T DANGEROUS AND HAS ONLY PEACEFUL POTENTIAL USES THE AMERICAN LAWYER ACCEPTED THE TASK OF TRYING TO GET THE SUBSTANCE LEGALLY OUT OF RUSSIA AND INTO SWITZERLAND WHERE IT IS TO BE TESTED IN GOVERNMENT LABS THE API PARTNERS HE SAYS PLAN TO USE RED MERCURY TO INJECT INTO OIL WELLS TO BREAK UP CLOTTING AND PUMP OUT ADDITIONAL CRUDE BUT I'M NOT A SCIENTIST MR SOUSA CONCEDES YOU COULD SHOW ME RED SHOE POLISH AND I WOULDN'T KNOW THE OILWELL APPLICATION DOESN'T HOLD MUCH WATER WITH RUSSIA'S SCIENTIFIC ELITE THE ACADEMY OF SCIENCES IN MOSCOW YOU WANT RED MERCURY WELL HERE'S SOME SAYS LEV NISELSON LABORATORY CHIEF AT MOSCOW'S INSTITUTE OF RARE ELEMENTS AS HE HOLDS UP A VIAL OF REDDISH POWDER AND I'LL SELL IT TO YOU CHEAP THE BALDING ACADEMICIAN DISSOLVES INTO LAUGHTER HE CONCOCTED THE POWDER HIMSELF BY MIXING MERCURY WITH IODINE AND HE SUSPECTS THAT MOST OF WHAT IS TOUTED AROUND THE WORLD AS RED MERCURY ISN'T MUCH MORE THAN THAT IF THERE IS RED MERCURY HE SAYS IT HAS NO PRACTICAL VALUE EVIDENT TO HIM FOR TWO YEARS BUREAUCRATS AND PROSPECTIVE TRADERS HAVE SENT PURPORTED CHEMICAL ANALYSES OF RED MERCURY TO MR NISELSON AND A COLLEAGUE YURI BUSLAYEV A RUSSIAN CHEMISTRY EXPERT THE ANALYSES SEEM TO SUGGEST THE DAWNING OF A NEW ERA OF SUPERMETALS WITH EXTRAORDINARY ENERGYSTORING CAPABILITIES BUT EACH TIME THE TWO MEN HAVE FOUND WHAT THEY CONSIDER FATAL FLAWS CONTRADICTIONS IN THE ANALYSES AND HAVE REJECTED THEM AS BOGUS RED MERCURY ABSOLUTELY DOES NOT EXIST SAYS MR BUSLAYEV WHO HAS HIS OWN THEORY AS TO THE MEANING OF THE MYSTERY MONEY LAUNDERING OTHERS CONTEND THAT RED MERCURY IS A COVER FOR THE EXPORT OF OTHER SENSITIVE MATERIALS MAYBE URANIUM OR EVEN GOLD BUT THERE IS AT LEAST ONE EXPERT WHO PERHAPS WITH TONGUE IN CHEEK SAYS RED MERCURY MIGHT BE FOR REAL TOM NEFF A PHYSICIST AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY CALLS HIMSELF AN AGNOSTIC ON THE ISSUE BUT WANTS TO BELIEVE HE IS SERIOUS ENOUGH ABOUT IT TO HAVE GIVEN A RUSSIAN COLLEAGUE IN THE URALS 100 TO FIND HIM A RED MERCURY SAMPLE THAT WAS A LONG TIME AGO MR NEFF SAYS HEY HE ADDS AFTER A PAUSE THAT GUY'S STILL GOT MY MONEY MORE SERIOUSLY CONVINCED IS FRANK BARNABY A BRITISH NUCLEAR SCIENTIST CURRENTLY IN RUSSIA SEARCHING FOR RED MERCURY I USED TO THINK IT WAS A HOAX HE SAYS BUT I NOW ACCEPT THAT IT MAY BE POSSIBLE TO CONSTRUCT A NUCLEAR WEAPON WITH THIS MATERIAL AND WHAT ABOUT MR YELTSIN'S DECREE WHICH HIS OFFICE CONFIRMS IS LEGITIMATE DOESN'T THAT SUGGEST THAT PEOPLE AT THE HIGHEST LEVELS OF GOVERNMENT WITH ACCESS TO SECRET INFORMATION BELIEVE RED MERCURY IS LEGIT I THINK IT WAS AN ERROR SAYS IVAN MATEROV RUSSIA'S FIRST DEPUTY TRADE MINISTER MR SADYKOV CONTENDS THAT CLAIMS THAT RED MERCURY DOESN'T EXIST CAN BE TRACED TO CRIMINAL AND POLITICAL GROUPS THAT HE SAYS HAVE BEEN EXPORTING THE MATERIAL SINCE THE 1970S AND DON'T WANT THEIR MONOPOLY BROKEN AMONG THE ALLEGED CONSPIRATORS SENIOR KGB OFFICERS COMMUNIST PARTY LEADERS MILITARY BRASS FOR NOW MR SADYKOV CULTIVATES AN IMAGE OF SECRECY WHICH MIGHT NOT BE BAD FOR BUSINESS HE WON'T DISCUSS HIS BACKGROUND EXCEPT TO SAY THAT HE ONCE WORKED IN A CLASSIFIED ANTIWEAPONS PROGRAM BUT FOR A MAN OF SCIENCE HE HAS QUIRKS HE TURNS WHITE WHEN A VISITOR PULLS OUT A CAMERA WE'VE DONE RESEARCH THAT PROVES THAT EXTRASENSORY EXPERTS CAN KILL A LIVING BEING FROM 1000 KILOMETERS WITH JUST A PHOTO MR SADYKOV EXPLAINS IN FACT I MYSELF CAN DO THIS AND AS WE KNOW HE CAN ALSO MAKE RED MERCURY SEE RELATED LETTER LETTERS TO THE EDITOR HOT COMMODITIES WSJ JAN 7 1994 9312060169 YY94 MM01 9401070004 931216 REVIEW & OUTLOOK EDITORIAL CAPTIVE CULTURE SO IN THE END THE US AND THE EUROPEAN COMMUNITY COULD NOT EVEN AGREE TO DISAGREE ON CULTURE AMERICAN DEMANDS THAT EUROPE LOWER ITS BARRIERS TO US FILMS MUSIC AND TV WERE TAKEN OUT OF THE GATT TREATY TO BE FOUGHT OVER LATER WHAT IS IT ABOUT CULTURE THAT SO FRIGHTENS POLITICIANS EVEN THE REDOUBTABLE NEGOTIATOR SIR LEON BRITTAN ADVISED EC FOREIGN MINISTERS TO STAND FAST AGAINST HOLLYWOOD ENTERTAINMENT IF IT THREATENS EUROPE'S CULTURAL IDENTITY WITH ALL DUE RESPECT FOR SIR LEON'S FORMIDABLE LANGUAGE SKILLS THAT LINE IS MEANINGLESS THE EC DOESN'T HAVE A CULTURAL IDENTITY IT HAS AT LEAST 12 INDEED THOUSANDS THE US HAS BORROWED HEAVILY FROM ALL OF THEM GREECE AND ITALY WERE THE FOUNTAINHEAD FOR MUCH OF WESTERN CULTURE INDIVIDUAL COUNTRIES ARE ASSOCIATED WITH SPECIAL ACHIEVEMENTS GERMANY CONTRIBUTED GREATLY TO THE WORLD'S STORE OF MUSIC HOLLAND AND FLANDERS TO ITS INVENTORY OF GREAT PAINTING THE BRITISH ISLES AND IRELAND TO THE STORE OF LITERATURE FRANCE TO THE ARTS OF DESIGN AND ARCHITECTURE NOTE THAT THESE DISCUSSIONS ARE GENERALLY HELD IN THE PAST TENSE CULTURE IS NOT CLOSELY HELD EUROPE HAS SHARED ITS CULTURE GENEROUSLY WITH THE REST OF THE WORLD AND HAS BORROWED FROM OTHER CULTURES SPANISH ARCHITECTURE OWES MUCH TO THE MOORS IN FREE SOCIETIES CULTURE WILL ULTIMATELY BE DEFINED AND MODIFIED BY PRIVATE CHOICE SOMETIMES BLENDING THE SAVAGE WITH THE SUBLIME ANCIENT TRADITIONS WILL BE PRESERVED BY THOSE WHO FIND COMFORT IN THE SENSE OF IDENTITY THEY IMPART THEY WILL BE DISCARDED OR REFASHIONED BY THOSE WHO PREFER TO SEEK NEW PERHAPS MORE COSMOPOLITAN IDENTITIES TOTALITARIAN GOVERNMENTS HAVE TRIED TO INFLUENCE POPULATIONS BY CONTROLLING THE WORK OF ARTISTS AND ENTERTAINERS SHAPING IT TO FIT POLITICAL PARTY LINES DURING ITS HEYDAY THE SOVIET STATE USED HEROIC PAINTINGS OF FARMERS AND WORKERS TO SPREAD THE MYTH OF A WORKER'S PARADISE THAT DID NOT EXIST FRANCE'S GOVERNMENTS ARE OF COURSE NOT TOTALITARIAN BUT THEY HAVE INSISTED ON SUBSIDIES FOR POLITICALLY CORRECT ARTISTS THAT MORE THAN ANYTHING ELSE ACCOUNTS FOR THE DECLINE OF THE FRENCH FILM INDUSTRY WHICH 25 YEARS AGO WAS MARKED BY ITS FRESHNESS AND VITALITY THE STRONG BUREAUCRATIC PRESSURES IN FRANCE TO TRY TO PROTECT WHAT'S LEFT OF THAT INDUSTRY FROM AMERICAN COMPETITION DERIVES FROM A STATEINFLICTED DEBACLE A FRENCH BANK CREDIT LYONNAIS DECIDED TO BUY INTO THE US ENTERTAINMENT BONANZA ONLY TO END UP WITH A LAME AMERICAN FILM COMPANY MGM SOMETIMES YOU CAN'T WIN DO AMERICAN FILMS AND MUSIC INJECT AN ALIEN VIRUS INTO THE PURITY OF EUROPEAN LIFE IT IS A SILLY QUESTION SUCCESSFUL ART IS A TONIC FOR THE SENSES AND PAYS NO HEED TO NATIONALITY AGE OF INNOCENCE A BEAUTIFUL AMERICANMADE FILM NOW WINNING LARGE AUDIENCES IN EUROPE IS ABOUT AN AFFAIR OF THE HEART THE CLASSIC STUFF OF DRAMA IT BELONGS TO NO GOVERNMENT ONLY TO THE MEN AND WOMEN WHO CREATED IT AND THE VIEWERS WHO IMMERSE THEMSELVES IN ITS ARTISTRY HOLLYWOOD IN ANY EVENT HAS ALWAYS BEEN HOME TO MULTITUDES OF EUROPEAN ARTISTS FLEEING EITHER THE CONTINENT'S POLITICAL OPPRESSION OR ITS TAX SYSTEM IN THE LATE 1960S BRITISH ROCK INVADED THE UNITED STATES AND THE WORLD BUT FIRST JOHN LENNON ERIC CLAPTON MICK JAGGER AND THE REST SPENT YEARS ABSORBING THE TRADITIONS OF AMERICAN RHYTHM AND BLUES MUSICIANS WE RECALL WAILS ABOUT THE DESTRUCTION OF AMERICAN CULTURE THEN TOO BUT WE HAVE THE TESTIMONY OF EUROPE'S CULTURE NEGOTIATORS A STARTLING CONCEPT IN ITSELF THAT IT'S ALIVE AND WELL MAYBE CULTURE JUST DIDN'T BELONG IN THE GATT AMERICA'S FILM INDUSTRY HAS INDEED BEEN TREATED UNFAIRLY BUT WILL CONTINUE TO THRIVE AGAINST EUROPEAN ART WHICH IS TO SAY SUBSIDIZED ART CULTURAL CREATIONS WILL MULTIPLY WHERE THEY ARE FREEST TO DO SO SEE RELATED LETTER LETTERS TO THE EDITOR A TACTICAL CHANGE IN CULTURE WARS' WSJ JAN 7 1994 9312160185 YY94 MM01 9401070003 931216 BELTWAY BOG HOW WASHINGTON FRUSTRATES CHANGE TICKET TO NOWHERE JOB PROGRAMS FLUNK AT TRAINING BUT KEEP WASHINGTON AT WORK BORN AS POLITICAL SOLUTIONS THEY OVERLAP YET RESIST ALL CONSOLIDATION EFFORTS THE BUREAUCRATIC ECOSYSTEM BY KEVIN G SALWEN AND PAULETTE THOMAS STAFF REPORTERS OF THE WALL STREET JOURNAL FINALLY THREE PEOPLE TRUDGE IN JACQUELINE NASH 34 HASN'T WORKED SINCE 1985 SCOTT SANDROW A 19YEAROLD FATHER CAN BOAST A JOB HISTORY OF ONLY SIX WEEKS OF FLIPPING BURGERS BEFORE BEING FIRED JOHN JORDAN A 45YEAROLD LABORER WITH TWO SCHOOLAGE CHILDREN HAS BEEN OUT OF WORK NEARLY A YEAR MS JOHNSON PASSES AROUND PURPLE FILE FOLDERS CONTAINING JOBHUNTING TIPS AND FORMS TO BE COMPLETED I CAN'T READ BLURTS OUT MR JORDAN THE COUNSELOR CAREFULLY EXPLAINS THE PROGRAM'S SOLE REQUIREMENT APPLY FOR TWO DOZEN JOBS IN THE NEXT 60 DAYS OR RISK LOSING YOUR FOOD STAMPS TEN OF THE JOB CONTACTS MUST BE IN PERSON THEIR MEETING THAT MORNING COUNTS AS ONE JOB CONTACT MS JOHNSON ADDS IF THEY WALK ACROSS THE HALL TO THE STATE'S EMPLOYMENT BUREAU THAT WILL COUNT AS ANOTHER CONTACT SHOPS ACROSS THE STREET ARE ANOTHER QUICK STOP YOU JUST HAVE TO GET THROUGH THIS SHE URGES THE TRAINEES LEAVE MS NASH FORGETS HER PURPLE FOLDER THIS IS THE GOVERNMENT'S DEFINITION OF JOB TRAINING UNDER A 1985 LAW CONGRESS CREATED A TRAINING PROGRAM ESPECIALLY FOR PEOPLE ON FOOD STAMPS OSTENSIBLY TO GET THEM INTO JOBS AND REDUCE THEIR NEED FOR GOVERNMENT AID THE PROGRAM AT THE AGRICULTURE DEPARTMENT WHICH ADMINISTERS FOOD STAMPS IS SMALL BY GOVERNMENT STANDARDS COSTING FEDERAL TAXPAYERS 1605 MILLION LAST YEAR BUT IN BALTIMORE COUNTY LAST YEAR FEWER THAN 1 OF 5000 FOODSTAMP RECIPIENTS GOT WORK THROUGH THE PROGRAM AND IN NEARBY MONTGOMERY COUNTY OFFICIALS CONSIDERED REJECTING THE FEDERAL FUNDS BECAUSE THE PROGRAM WAS SUCH A FAILURE TWO THINGS ARE CLEAR FIRST THE PROGRAM IS A SHAM SECOND IT ISN'T GOING TO BE ELIMINATED DEMOCRATIC SEN PATRICK LEAHY OF VERMONT ONE OF THE BARONS OF CONGRESS AND CHAIRMAN OF THE SENATE AGRICULTURE COMMITTEE SAYS HE WILL FIGHT ANY PROPOSAL THAT MAKES IT MORE DIFFICULT FOR THE PEOPLE WE ARE TRYING TO HELP THE STORY OF THE AGRICULTURE DEPARTMENT'S JOBTRAINING PROGRAM IS A PARABLE THAT SHOWS WHY EVEN THE WORST PROGRAMS IN WASHINGTON ARE SO HARD TO ELIMINATE OR CHANGE PRESIDENT CLINTON SAYS REVAMPING THE NATION'S TRAINING PROGRAMS IS NEAR THE TOP OF HIS 1994 AGENDA HE BELIEVES THAT IF DONE PROPERLY TRAINING PROVIDES A KEY TO HELPING AMERICAN WORKERS ESCAPE THE SAD CYCLE OF STAGNATING LIVING STANDARDS THAT THEY HAVE SUFFERED FOR THE PAST TWO DECADES AND HIS BRAIN TRUST LED BY LABOR SECRETARY ROBERT REICH HAS SPENT MONTHS STUDYING TRAINING PROGRAMS TO LEARN WHICH WORK AND WHICH DON'T THEY WOULD LIKE TO CONSOLIDATE THE 150 DIFFERENT EDUCATION AND TRAINING PROGRAMS THAT DRAIN 24 BILLION OUT OF THE FEDERAL COFFERS EACH YEAR AND CONCENTRATE FUNDS IN THOSE THAT WORK BUT WITHIN THE UNYIELDING WASHINGTON LABYRINTH IT ISN'T ENOUGH TO SIMPLY UNDERSTAND WHAT WORKS THE FEDERAL BUREAUCRACY IS WOVEN TOGETHER WITH AGENCY EMPLOYEES AND CONGRESSIONAL COMMITTEES WHO ZEALOUSLY GUARD EVERY CORNER OF THEIR TURF TO PLEASE THEM ALL TRAINING DOLLARS MUST BE SPREAD THIN ACROSS THE FEDERAL UNIVERSE DILUTING THEIR EFFECTIVENESS THE RESULT IS PROGRAMS LIKE THE ONE FOR FOODSTAMP RECIPIENTS WHICH NEARLY EVERYONE AGREES DON'T WORK BUT THAT NEVERTHELESS APPEAR ALL BUT IMPOSSIBLE TO KILL EVEN AS THE CLINTON ADMINISTRATION WONDERS WHAT TO DO WITH THE FOODSTAMP AND OTHER TRAINING PROGRAMS LAWMAKERS AND THEIR STAFFERS ARE GIRDING TO KEEP THEM UNDER THEIR CONTROL YOU WANT TO CONSOLIDATE THEM GOOD LUCK SAYS ANTHONY CARNEVALE CHAIRMAN OF THE NATIONAL COMMISSION FOR EMPLOYMENT POLICY AND A CLINTON APPOINTEE AS FREQUENTLY HAPPENS POLITICAL PRESSURES ALREADY HAVE OVERCOME THE CLINTON ADMINISTRATION'S DESIRE TO CONSOLIDATE IN ONE AREA IN ORDER TO WIN VOTES FOR THE NORTH AMERICAN FREE TRADE AGREEMENT THE ADMINISTRATION ITSELF AGREED TO CREATE YET ANOTHER TRAINING PROGRAM THIS ONE FOR WORKERS DISLODGED BY NAFTA NO AREA BETTER ILLUSTRATES THE SPRAWLING REDUNDANT FEDERAL BUREAUCRACY THAN JOB TRAINING PROGRAMS DRAPE ACROSS 14 FEDERAL AGENCIES INCLUDING THE BUREAU OF INDIAN AFFAIRS AND THE APPALACHIAN REGIONAL COMMISSION LARGELY BECAUSE LAWMAKERS LOOKED FOR EASY WAYS TO SHOW THEY WERE TAKING CARE OF THEIR SPECIFIC CONSTITUENCIES AS A RESULT THE OVERLAP IS STUNNING THE DISABLED MAY ENTER 35 SEPARATELY FUNDED TRAINING PROGRAMS FOR THE POOR 65 EDUCATION OR JOB PROGRAMS AWAIT ADMINISTRATIVE COSTS CAN RUN 30 JUST HOW SILLY IS THE FEDERAL GOVERNMENT'S TRAINING SYSTEM CONSIDER THE EDUCATION DEPARTMENT'S VOCATIONAL SYSTEM IS LAYING OUT FEDERAL LOANS TO TRAIN 81600 COSMETOLOGY STUDENTS A YEAR BUT THE JOB MARKET IS CREATING SLOTS FOR JUST 17000 HALF THE PEOPLE IN THE TRADE ADJUSTMENT ASSISTANCE PROGRAM CREATED TO HELP WORKERS OUSTED BY IMPORTS COLLECT GOVERNMENT BENEFITS WITHOUT EVER TAKING TRAINING SUPPOSEDLY REQUIRED TO GET THE MONEY ACCORDING TO THE LABOR DEPARTMENT'S INSPECTOR GENERAL THE JOB TRAINING PARTNERSHIP ACT THE GOVERNMENT'S BIGGEST TRAINING PROGRAM ACTUALLY LED TO LOWER WAGES FOR POOR YOUNG MEN COMPARED WITH A CONTROL GROUP A PRIVATE STUDY SHOWED IN PHILADELPHIA SEVERAL WOMEN WHO RECENTLY COMPLETED A NINEMONTH GOVERNMENTFUNDED PROGRAM TO BECOME MEDICAL ASSISTANTS ARE NOW READYING LEGAL ACTION THE LOCAL TRAINING COUNSELORS WERE TOLD THE AREA HAD NO JOBS FOR PEOPLE WITH THOSE SKILLS BUT RAN THE TRAINING ANYWAY SAYS IRV ACKELSBERG OF COMMUNITY LEGAL SERVICES INC IN PHILADELPHIA CLEARLY SOME INTENSIVE PROGRAMS WORK WELL THE MOST EXPENSIVE THE JOB CORPS KEEPS TRAINEES IN A BOOTCAMP TYPE ENVIRONMENT FOR AS LONG AS TWO YEARS AT AN ANNUAL COST OF 20000 PER PERSON THE CLINTON ADMINISTRATION WOULD LIKE TO CONCENTRATE ITS RESOURCES ON THOSE INTENSIVE PROGRAMS THAT WORK BUT IN TRYING TO DO SO IT RISKS RUNNING AFOUL OF THE MYRIAD COMMITTEES CABINET SECRETARIES AND BUREAUCRATS WHO HAVE AN INTEREST IN KEEPING THE SHALLOW AND FARFLUNG PROGRAMS LIKE THE FOODSTAMP PROGRAM THESE USUALLY DON'T WORK BUT THEY PRESERVE THE LIFEBLOOD OF WASHINGTON THE MONEY AND POWER THAT COME WITH CONTROL OVER PROGRAMS THE PROGRAMS' BLATANT LACK OF SUCCESS FEEDS THE PUBLIC'S GROWING PESSIMISM ABOUT WASHINGTON WE DEAL IN THE CYCLE OF RAISED EXPECTATIONS AND NOT BEING ABLE TO FILL THEM SAYS JOHN ZELLER WHO RUNS TRAINING PROGRAMS IN MONTGOMERY COUNTY IT MAKES PEOPLE CYNICAL AND DISAPPOINTS THEM ABOUT GOVERNMENT THE AGRICULTURE DEPARTMENT'S FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM IS HARD TO JUSTIFY ON ANY GROUNDS FOR ONE THING MOST FOODSTAMP RECIPIENTS WOULD BE ELIGIBLE FOR SOME OF THE OTHER FIVE DOZEN PROGRAMS FOR THE POOR BUT SOME 15 MILLION PEOPLE WERE HERDED THROUGH THE PROGRAM LAST YEAR MEANING THE GOVERNMENT SPENT ABOUT 100 TO TRAIN EACH PARTICIPANT LESS THAN THE TAB FOR A TYPICAL WASHINGTON POWER LUNCH TO DISCUSS AIDING THE POOR WORSE THE MONEY SLOSHES BETWEEN TWO BROAD CATEGORIES OF PARTICIPANTS YET IS HELPFUL TO NEITHER THE FIRST GROUP IS PEOPLE WHO ARE TEMPORARILY OUT OF WORK AND ARE LIKELY TO FIND A JOB WITHOUT GOVERNMENT ASSISTANCE ANYWAY THE SECOND GROUP HAS BIGGER PROBLEMS RANGING FROM MILD MENTAL ILLNESS TO POOR EDUCATION AND 100 OF FEDERALGOVERNMENT EFFORT ISN'T GOING TO CHANGE THOSE REALITIES THE AGRICULTURE DEPARTMENT'S OFFICIAL REPORT ON THE PROGRAM FOR THE YEAR 67 PAGES LONG SPINS OUT COLUMN AFTER COLUMN OF STATISTICS EXCEPT THE ONLY ONE THAT COUNTS HOW MANY PEOPLE ACTUALLY GOT JOBS THROUGH IT THAT INFORMATION WILL COME LATER OR AS IT IS EXPLAINED IN CLASSIC WASHINGTON BUREAUCRATESE THE IMPLEMENTATION OF OUTCOMEBASED PERFORMANCE STANDARDS WAS POSTPONED HOW DID THE COUNTRY GET YET ANOTHER JOBTRAINING PROGRAM AND HOW HAS IT SURVIVED SO LONG DESPITE AT LEAST TWO STUDIES CLEARLY SHOWING THAT IT IS A FLOP IN 1985 DURING THE REAGAN YEARS THE 52 BILLION FARM BILL MARCHED THROUGH CONGRESS DRAGGING ALONG TWO SEPARATE CONFLICTING PROPOSALS ON FOOD STAMPS REPUBLICANS THEN WIELDING A MAJORITY IN THE SENATE INSISTED THAT FOODSTAMP RECIPIENTS WORK IN EXCHANGE FOR THEIR BENEFITS DEMOCRATS COUNTERED WITH A TRAINING PROGRAM INTENDED TO PUSH RECIPIENTS OFF THE DOLE AND INTO JOBS IN TYPICAL CAPITOL HILL STYLE THEY HEADED TOWARD A COMPROMISE THAT WOULD ALLOW BOTH SIDES TO CLAIM VICTORY CREATING AN EMPLOYMENT AND TRAINING PROGRAM FOR PEOPLE ON FOOD STAMPS THE ADMINISTRATION AND THE STATES WOULD BE LEFT TO WORK OUT THE DETAILS ROBERT GREENSTEIN WHO HEADED THE FOODSTAMP PROGRAM UNDER PRESIDENT CARTER WAS AMONG THOSE WHO TRIED TO HEAD OFF THE EMERGING PLAN AT SEVERAL HEARINGS HE POINTED TO STUDIES THE GOVERNMENT'S OWN THAT HE SAID WERE BEING IGNORED THEY CLEARLY SHOWED THAT THE PROGRAM WOULD SPREAD ITS RESOURCES SO THIN THAT IT ENDS UP PRODUCING LITTLE IN THE WAY OF GAINS FOR ANYONE HE WARNED HOUSE AND SENATE COMMITTEES AS THE SENATE AGRICULTURE COMMITTEE WAS DRAFTING A FINAL BILL MR GREENSTEIN COLLARED JOHN BODE PRESIDENT REAGAN'S ASSISTANT SECRETARY FOR AGRICULTURE WHO WOULD RUN THE PROGRAM YOU ARE SQUANDERING YOUR LIMITED RESOURCES HE RECALLS TELLING MR BODE FOR ABOUT 90 SECONDS MR BODE LISTENED POLITELY THEN THE AGRICULTURE OFFICIAL SAID HE KNEW OF RESEARCH THAT SUPPORTED THE COMPROMISE'S APPROACH THE BILL PASSED NOTABLY SINCE THE TRAINING PROGRAM WAS CONTAINED IN THE FOODSTAMP SECTION IT IS IN BUDGET PARLANCE MANDATORY IT WOULD BE DULY RUBBERSTAMPED IN EVERY BUDGET FOR YEARS TO COME WHETHER OR NOT FUNDS WERE THERE TO COVER IT THE REAGAN ADMINISTRATION THEN TOOK ITS NEW PROGRAM DESTINED FOR WEAKNESS AND DOOMED IT TO FAILURE THE AGRICULTURE DEPARTMENT DECREED THAT AT LEAST HALF OF FOODSTAMP FAMILIES MUST PARTICIPATE THAT MEANT THAT JUST 40 MILLION WOULD BE SPREAD TOO THINLY TO TRAIN MANY OF THE 20 MILLION PEOPLE ON FOOD STAMPS THAT YEAR WHILE FEDERAL OFFICIALS BOASTED THAT THEY HAD LINKED FOODSTAMP HANDOUTS WITH TRAINING STATES IMMEDIATELY REALIZED THE PROGRAM WAS UNWORKABLE AND BEGAN URGING WASHINGTON TO FIX IT AT A FOODSTAMP DIRECTORS' CONFERENCE IN THE FALL OF 1986 SEVERAL STATE OFFICIALS CORNERED THE AGRICULTURE DEPARTMENT'S ARTHUR FOLEY THE PROGRAM DESIGNER DROP THE 50 PARTICIPATION RULE THEY PLEADED AND LET US TARGET FEWER PEOPLE TO GIVE THEM REAL JOB TRAINING RECALLS LELA DYSON A TEXAS ADMINISTRATOR BUT MR FOLEY DEFENDED THE PROGRAM A SIMPLE JOB SEARCH IS A GOOD FIRST STEP HE TOLD THEM THE STATES COULD STILL TRAIN A SMALL NUMBER OF THEIR PARTICIPANTS FINALLY BY MID1988 THREE YEARS AFTER THE BILL'S PASSAGE PROPONENTS OF AN OVERHAUL DISCOVERED AN ALLY THE AGRICULTURE DEPARTMENT HAD HIRED A RESPECTED RESEARCH FIRM TO REVIEW ITS SOJOURN INTO THE WORLD OF JOB TRAINING ABT ASSOCIATES INC BASED IN BETHESDA MD QUICKLY DETERMINED THAT THE PROGRAM WAS A LEMON AND TOLD DEPARTMENT OFFICIALS SO THE OUTCOMES FOR PARTICIPANTS WERE EXTREMELY SIMILAR TO WHAT THEY WOULD HAVE EXPERIENCED IN THE ABSENCE OF THE PROGRAM IT SUMMED UP WHILE THE ADMINISTRATIVE COSTS WERE A BURDEN FOR TAXPAYERS IN OTHER WORDS EVERY TAXPAYER DOLLAR WENT DOWN THE RAT HOLE DESPITE THE DRUMBEAT OF COMPLAINTS FROM STATE OFFICIALS IT WASN'T UNTIL THE ABT REPORT APPEARED THAT AGRICULTURE OFFICIALS CONCEDED THE PROGRAM MIGHT HAVE ROOM FOR IMPROVEMENT MICHAEL PUMA ABT'S MANAGING VICE PRESIDENT STOOD BY READY TO MAKE RECOMMENDATIONS TO THE ADMINISTRATION BASED ON THE THREEYEAR REVIEW BUT NO ONE ASKED THAT'S NOT HOW WASHINGTON WORKS THE BUREAUCRATS WHO RUN THE PROGRAMS AND HAVE AN INTEREST IN KEEPING THEM RUNNING MAKE RECOMMENDATIONS ON HOW TO CHANGE THEM THE AGRICULTURE DEPARTMENT FOR EXAMPLE RUNS ONLY ONE TRAINING PROGRAM THE ONE FOR FOOD STAMPS AND ELIMINATING IT WOULD COST THE AGENCY JOBS AND BUDGET DOLLARS IN THIS ATMOSPHERE OUTSIDERS REMAIN OUTSIDERS MR PUMA SAYS IT WAS MADE CLEAR TO HIM BY AGRICULTURE OFFICIALS AT THE OUTSET THAT HIS RESEARCH WASN'T TO BE CLOUDED WITH PROPOSALS ON HOW TO CHANGE ANYTHING THE REPORT ALSO CIRCULATED ON CAPITOL HILL NO MEMBER OR STAFFER WAS INTERESTED ENOUGH TO ASK MR PUMA FOR WAYS TO BETTER SPEND TAXPAYER MONEY I ALWAYS WONDER WHY THEY DON'T CALL US HE SAYS TODAY AFTER ABT'S FINAL REPORT WAS UNVEILED IN JUNE 1990 CONGRESS AND THE AGRICULTURE DEPARTMENT FINALLY AGREED TO MAKE THE CHANGES THAT THE STATES HAD CALLED FOR IN THE FIRST PLACE MOST FUNDAMENTALLY PRESIDENT REAGAN'S 50 PARTICIPATION WAS SQUISHED DOWN TO 10 STATES WERE ALSO INSTRUCTED TO BEGIN COUNTING UP JOB PLACEMENTS TO MEASURE HOW IT WAS WORKING FAR FROM BEING A PANACEA THE CHANGE WOULD RAISE THE AMOUNT OF MONEY AVAILABLE FOR TRAINING STATE OFFICIALS SAY TO MAYBE 200 PER PERSON DEPENDING ON HOW STATES ADMINISTER THE PROGRAM MR PUMA OF ABT GRUMBLES ABOUT THE MINOR SHIFT IT WAS HE SAYS NOTHING MORE THAN TINKERING AROUND THE EDGES TODAY NEARLY NINE YEARS AFTER THE PROGRAM WAS CREATED THE CLINTON ADMINISTRATION HAS COME TO WASHINGTON INVOKING TRAINING PROGRAMS AS AN ANTIDOTE TO ECONOMIC AND SOCIAL PROBLEMS THE FOODSTAMP PROGRAM IS IN ITS SIGHTS AS ADMINISTRATION OFFICIALS DISCUSS MERGING A NUMBER OF PROGRAMS THAT TARGET THE POOR BUT EVEN LABOR SECRETARY REICH IS WARY OF UNSETTLING WASHINGTON'S DELICATE BUREAUCRATIC ECOSYSTEM ONCE YOU START TRYING TO REARRANGE THE BUREAUCRATIC BOXES THERE'S NO END TO THE DIFFICULTY HE SAYS HE HOPES INSTEAD THAT THE STATES CAN KNIT TOGETHER THE VARIOUS FEDERAL FUNDING SOURCES FOR TRAINING BUT FEDERAL PROGRAMS WITH THEIR STIFF SPECIFIC RULES DON'T LEND THEMSELVES TO EASY MERGING AS THE FOODSTAMP JOBTRAINING PROGRAM STANDS NOW IN MOST STATES IT'S AN EXERCISE IN FUTILITY CLYDE MCQUEEN WHO RUNS THE ONE IN KANSAS CITY MO SPENDS MUCH OF HIS TIME JUST SAYING NO TO TRAINING APPLICANTS THEN WE RECOMMEND THEM TO OTHER PROGRAMS THAT DON'T HAVE THE MONEY TO SERVE THEM EITHER HE SAYS IN MONTGOMERY COUNTY MD MR ZELLER ESTIMATES THAT AFTER RESUME HELP AND JOB COUNSELING HE IS LEFT WITH ONLY ABOUT 5000 TO 7000 FOR TRAINING ABOUT ENOUGH FOR WHAT EXPERTS SAY WOULD PROPERLY TRAIN ONE PERSON WE ARE PROVIDING A PURE ADMINISTRATIVE PAPERCHASE FUNCTION MR ZELLER SAYS WITH A SIGH BACK IN BALTIMORE THE COUNTY HAS GRASPED AT ONE FAILED STRATEGY AND ANOTHER TO STRETCH ITS FISHES AND LOAVES WHILE MEETING THE FEDERAL FOODSTAMP MANDATES FOR A WHILE A COUNTY EMPLOYEE WORKED FULL TIME LOOKING FOR JOBS FOR FOODSTAMP RECIPIENTS NOT COST EFFECTIVE OFFICIALS DECIDED THEN THE COUNTY HIRED A PRIVATE CONTRACTOR TO BE PAID PER JOB SEARCH AFTER SEVERAL MONTHS THE FIRM QUIT IT WASN'T MAKING ENOUGH MONEY BECAUSE TOO FEW PARTICIPANTS SHOWED UP NOW MS JOHNSON THE BALTIMORE TRAINING COUNSELOR SPENDS A FEW MORNINGS A WEEK HOLDING WORKSHOPS SHE KEEPS HER EXPECTATIONS LOW OF THE 5000 COUNTY RESIDENTS WHO RECEIVE FOOD STAMPS ABOUT 700 ARE SUPPOSED TO TAKE PART IN THE TRAINING PROGRAM SOCIAL WORKERS CULL THAT SMALLER GROUP FROM THOSE WHO AREN'T EXEMPT AND ARE MOST LIKELY TO SUCCEED IN THE PROGRAM BUT ONLY ABOUT 400 MAKE EVEN A CURSORY EFFORT THE GRAND TOTAL WHO GOT JOBS THROUGH THE PROGRAM IN THE PAST YEAR 41 IT'S PITIFUL SHE SAYS FAR FROM THE PROGRAM BEING HELPFUL MS JOHNSON FEELS THAT IT IS EITHER AN EXTRA BURDEN ON PEOPLE WITH DIFFICULT LIVES OR IRRELEVANT THE RESULTS OF THE LITTLE WORKSHOP UNDERSCORE HER POINT THE GOVERNMENT COULD HAVE SAVED ITS MONEY ON MR SANDROW THE FORMER BURGER FLIPPER LIKE MANY OTHERS ON FOOD STAMPS HE IS ONLY TEMPORARILY OUT OF WORK AND IS LIKELY TO LAND SOME SORT OF JOB WITH OR WITHOUT A GOVERNMENT CLERK PEERING OVER HIS SHOULDER EVEN BEFORE ATTENDING THE CLASS THE TEENAGE FATHER OF A TWOMONTHOLD BABY HAD ARRANGED JOB INTERVIEWS A WEEK AFTER THE WORKSHOP HE WAS OFF TO A JOB AT A LOCAL 7ELEVEN HE SAYS HE DOESN'T CARE IF HE GETS FOOD STAMPS ANYMORE BUT FOR THE MANY ON FOOD STAMPS WITH BIGGER BARRIERS TO EMPLOYMENT THE PROGRAM IS A HOLLOW EFFORT MR JORDAN WHO DROPPED OUT OF SCHOOL IN SIXTH GRADE AND NEVER LEARNED TO READ IS AMONG THEM RIGHT NOW HE SUPPORTS HIS WIFE AND TWO CHILDREN WITH FOOD STAMPS AND UNEMPLOYMENT BENEFITS SITTING AT THE CONFERENCE TABLE HE DISCREETLY EXAMINES HIS DRIVER'S LICENSE TO COPY HIS ADDRESS AND PERSONAL INFORMATION ON GOVERNMENT FORMS WHILE MS JOHNSON LOOKS AWAY A WEEK AFTER HIS MEETING WITH MS JOHNSON HE HAS HAD NO LUCK BUT IS DUTIFULLY GATHERING SIGNATURES THAT CERTIFY HE IS JOB HUNTING TO PRESERVE HIS FOOD STAMPS SO FAR HE HAS SIX SIGNATURES I'M LOOKING AT CAR DEALERS HE SAYS FACTORY CLEANUP A GROCERY STORE NO BITES YET IT'S ROUGH OUT THERE RIGHT NOW MS JOHNSON FEELS BAD THAT SHE CAN'T DO MORE TO HELP HIM AFTER THE WORKSHOP SHE PHONES A LOCAL HIGH SCHOOL TO SEE IF ITS LITERACY PROGRAM CAN FIT HIM IN THEY WILL GET BACK TO HER SHE ALSO SPENDS A LONG WHILE LOOKING AT HIS FILE TO SEE IF THERE IS A WAY TO EXEMPT HIM FROM THE PROGRAM AND STILL ALLOW HIM TO RECEIVE FOOD STAMPS IF HE WERE HANDICAPPED FOR INSTANCE OR CARING FOR CHILDREN OR IF HE WERE RECEIVING WELFARE BENEFITS HE WOULDN'T HAVE TO TAKE PART IN THE CHARADE HE MIGHT BE BETTER OFF SHE NOTES IRONICALLY IF HE WERE A DRUG ABUSER DRUG ADDICTION OFFICIALLY EXEMPTS FOODSTAMP RECIPIENTS FROM TRAINING REQUIREMENTS WITHOUT JEOPARDIZING THEIR FOOD STAMPS BUT THEY ARE BOTH STUCK WITH THE PROGRAM BEING ILLITERATE ISN'T AN EXEMPTION MS JOHNSON SAYS SEE RELATED LETTER LETTERS TO THE EDITOR DON'T BE FLIPPANT ABOUT OUR CAREERS WSJ JAN 7 1994 SEE RELATED LETTER LETTERS TO THE EDITOR MY POSITION DISTORTED ON JOBS TRAINING WSJ JAN 13 1994 9312160053 YY94 MM01 9401060146 931213 REVIEW & OUTLOOK EDITORIAL POLITICALLY CORRECT CLASSIFIEDS A SIMPLE NEWSPAPER WANT AD COST BEVERLY SCHNELL 8000 IN LEGAL BILLS AND FINES ANOTHER TALE OF POLITICAL CORRECTNESS RUN TOTALLY AMOK WHEN SHE TRIED TO RENT OUT A FLOOR OF HER HOUSE SHE ADVERTISED A PREFERENCE FOR A CHRISTIAN HANDYMAN AS A TENANT THAT WAS ENOUGH TO BRING DOWN THE POWER OF THE HOUSINGBIAS THOUGHT POLICE ON HER MRS SCHNELL IS A 50YEAROLD DIVORCED WOMAN WHO WORKS PART TIME IN OCTOBER THE STATE OF WISCONSIN FOUND THAT SHE HAD ENGAGED IN SEXUAL AND RELIGIOUS DISCRIMINATION BY TAKING OUT THE FOLLOWING AD IN A LOCAL PAPER APARTMENT FOR RENT 1 BEDROOM ELECTRIC INCLUDED MATURE CHRISTIAN HANDYMAN INITIALLY MRS SCHNELL WAS CONTACTED BY THE MILWAUKEE FAIR HOUSING COUNCIL A NONPROFIT ORGANIZATION THE COUNCIL SAID SHE HAD DISCRIMINATED BECAUSE HER AD SUGGESTED THAT A HANDYMAN OR MALE WAS PREFERRED AND CHRISTIAN IMPLIED THAT NONCHRISTIANS WOULDN'T BE WELCOME BEAR IN MIND THESE PEOPLE HAVE TO TROLL THE WANT ADS TO NAIL PEOPLE ON THIS THE COUNCIL OFFERED TO DROP THE CASE IF MRS SCHNELL PAID A 50 FINE AND 500 IN ATTORNEY'S FEES SHE REFUSED CLAIMING SHE HADN'T INTENDED TO DISCRIMINATE SHE SAYS SHE MERELY WANTED A TENANT WHO COULD HELP HER REMODEL HER 100YEAROLD HOUSE IN EXCHANGE FOR A LOWER RENT AS A CHRISTIAN SHE ALSO FELT AN OBLIGATION TO HELP OTHER CHRISTIANS FIRST SHE NEVER ASKED THE RELIGION OF THE EMOTIONALLY DISTURBED MAN SHE ENDED UP ACCEPTING AS HER TENANT KATHY CHARLTON AN ATTORNEY FOR THE FAIR HOUSING COUNCIL ACCEPTED MRS SCHNELL'S STATEMENT THAT SHE HADN'T INTENDED TO DISCRIMINATE BUT SAYS THE LAW IS THE LAW INTENT GOES TO THE ISSUE OF THE AMOUNT OF DAMAGES NOT WHETHER YOU VIOLATED THE LAW OR NOT SHE TOLD THE MILWAUKEE JOURNAL AFTER MRS SCHNELL REFUSED TO SETTLE WITH THE FAIR HOUSING COUNCIL THE NEXT TIME SHE HEARD ABOUT HER AD WAS LAST YEAR WHEN SHE WAS NOTIFIED THAT THE FAIR HOUSING COUNCIL HAD INDEED FILED A COMPLAINT WITH THE STATE AS IT IS SOMEHOW EMPOWERED TO DO AFTER THE STATE'S EQUAL RIGHTS DIVISION FOUND HER GUILTY SHE LEARNED THE FINES AND FEES WOULD TOTAL 8000 SHE FEARS SHE MAY HAVE TO TAKE OUT A SECOND MORTGAGE ON HER HOUSE IF SHE LOSES HER APPEAL TO THE LOCAL CIRCUIT COURT MRS SCHNELL IS ONLY THE LATEST TARGET OF A SCHEME THAT ALLOWS SOCALLED PUBLICINTEREST LAWYERS TO EXTRACT SETTLEMENTS FROM NEWSPAPERS OR EVEN HOMEOWNERS FOR RUNNING ADS THAT WITTINGLY OR UNWITTINGLY DISCRIMINATE WE WONDER WHERE THE LIMITS ARE ON THE LOGIC OF THIS SORT OF LITIGATION AND ADMINISTRATIVE POLICING THE SCHNELL CASE SUGGESTS THE POTENTIAL DANGERS WHATEVER THE LAW'S NOMINALLY GOOD INTENTIONS THE EXPERIENCE OF PEOPLE IN THE REAL WORLD IS THAT INCREASINGLY SUCH LAWS ARE ENFORCED CAPRICIOUSLY BY MIDDLELEVEL BUREAUCRATS OR ABUSED BY FINANCIALLY INTERESTED LITIGATORS IT'S BECOMING AN ALTOGETHER TOO COMMON PRODUCT OF THE AMERICAN SYSTEM SEE RELATED LETTERS LETTERS TO THE EDITOR CLOSED DOORS HOUSING DISCRIMINATION WSJ JAN 6 1994 9312130062 YY94 MM01 9401060141 931222 TEXAS JOURNAL THE SHOPPING MALL IS DEAD NOT IN TEXAS DEVELOPERS INSISTING THAT TEXAS IS UNIQUE PLAN BIG NEW PROJECTS BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL THE TEXAS SHOPPING MALL IS FIGHTING BACK AT A TIME WHEN DISCOUNT STORES ACROSS THE COUNTRY HAVE WOOED VALUECONSCIOUS CONSUMERS AWAY FROM TRADITIONAL SHOPPING CENTERS TEXAS MALLS ARE DETERMINED TO BUCK THE TREND IN AUSTIN DEVELOPERS HAVE THREE SEPARATE PROPOSALS FOR NEW MALLS INCLUDING A PLAN BY CENTERMARK PROPERTIES INC OF ST LOUIS FOR A MALL IN THE HEART OF DOWNTOWN HOMART DEVELOPMENT CO OF CHICAGO HAS BEGUN BUILDING A ONEMILLIONSQUAREFOOT MALL IN THE WOODLANDS NEAR HOUSTON SCHEDULED TO OPEN NEXT OCTOBER AND FORT WORTH'S HULEN MALL WHICH IS OWNED BY ROUSE CO OF COLUMBIA MD IS UNDERGOING A 360000SQUAREFOOT EXPANSION RETAILERS ARE SEEING THIS AS A MARKET THAT IS BACK IN THE GROWTH SWING SAYS WALLY BREWSTER THE HULEN MALL'S MARKETING MANAGER IF THE DEVELOPERS ARE RIGHT IT'S GOOD NEWS FOR TEXAS CONSUMERS MALL CONSTRUCTION AND EXPANSION OFTEN ATTRACT NEW RETAILERS THAT HAD BEEN SHUT OUT OF THE MARKET CENTERMARK'S DOWNTOWN AUSTIN MALL FOR INSTANCE WOULD BRING MACY'S AND NORDSTROM'S DEPARTMENT STORES NEITHER OF WHICH HAS EVER HAD A STORE IN THE CITY AND NEW MALLS COULD INCREASE CRUCIAL TOURISM SPENDING OUR FEELING IS THERE ARE AUSTIN DOLLARS LEAVING AUSTIN TO SHOP ELSEWHERE WHERE THE VARIETY IS A LITTLE BETTER SAYS JAMES DAUSCH EXECUTIVE VICE PRESIDENT FOR DEVELOPMENT FOR CENTERMARK RIGHT NOW VISITORS ARE BRINGING MONEY TO AUSTIN AND TAKING IT RIGHT BACK WITH THEM BUT DON'T START COUNTING THE TOURISTS' CASH QUITE YET DESPITE DEVELOPERS' OPTIMISM TEXAS MALLS CLEARLY HAVE A STRUGGLE AHEAD RETAIL AND REALESTATE ANALYSTS SAY THE STATE ISN'T IMMUNE TO THE SAME CONSUMER BUYING TRENDS THAT HAVE LEFT THE TRADITIONAL MALL AN ENCLOSED CLIMATECONTROLLED SHOPPING CENTER ANCHORED BY MAJOR DEPARTMENT STORES STRUGGLING IN MOST OF THE COUNTRY BUSY CONSUMERS HAVE LESS TIME FOR A LEISURELY STROLL THROUGH THE MALL MOREOVER DISCOUNTERS SUCH AS WALMART STORES INC AND KMART CORP ARE LURING BARGAIN HUNTERS IN DALLASFORT WORTH THIS YEAR ALONE DISCOUNTERS OPENED 21 MILLION SQUARE FEET OF RETAIL SPACE ACCORDING TO M/PF RESEARCH INC IN DALLAS THAT COMPARES WITH 89000 SQUARE FEET OF REGIONALMALL GROWTH IT IS A VERY UNUSUAL PHENOMENON THAT THEY'RE BUILDING SO MANY REGIONAL MALLS HERE NOW AND CERTAINLY THERE'S SOME RISK INVOLVED IN IT SAYS M RAY PERRYMAN PRESIDENT OF PERRYMAN CONSULTANTS INC IN WACO THEY MAY BE SOMEWHAT SURPRISED BY THE IMPACT THE DISCOUNT CENTERS WILL HAVE ON THEM PERHAPS MALLBOOSTERS SAY BUT THE PESSIMISTS THEY ADD ARE IGNORING ONE IMPORTANT POINT TEXAS IS DIFFERENT FROM THE REST OF THE COUNTRY FOR ONE THING THE MID1980S REALESTATE DOWNTURN IN TEXAS STALLED SO MANY MALL PROJECTS THAT SOME PARTS OF THE STATE INCLUDING AUSTIN AND FORT WORTH ARE BELIEVED TO BE UNDERMALLED IN ADDITION THEY SAY IF ANY STATE CAN COUNTER THE NATIONAL TREND IT'S TEXAS STRONG JOB AND POPULATION GROWTH IS PART OF THE REASON BUT IT'S MORE THAN THAT AIRCONDITIONED INDOOR SHOPPING IS STILL A MUST HERE AND THE STATE'S RELATIVELY YOUNG SUBURBAN POPULATION AND THE SLOWER PACE OF LIVING IN TEXAS MAKE TRADITIONAL MALLS MORE VIABLE ALREADY DEVELOPERS NOTE ON A PERCAPITA BASIS TEXAS HAS 26 MORE BIG MALLS 800000 SQUARE FEET AND OVER THAN THE NATIONAL AVERAGE AND THEY ADD THAT ISN'T ENOUGH CENTERMARK PLANS TO BUILD BETWEEN 750000 AND 800000 SQUARE FEET OF MALL SPACE IN DOWNTOWN AUSTIN THE IDEA IS FOR A THREELEVEL MALL WITH TWO LEVELS OF UNDERGROUND PARKING ALTHOUGH THE CENTER WILL FEEL LIKE A TRADITIONAL MALL ON THE INSIDE IT WILL HAVE STREETLEVEL STORE ENTRANCES ON THE OUTSIDE SO THAT IT FEELS LIKE IT BELONGS IN A DOWNTOWN SETTING MR DAUSCH SAYS STILL CENTERMARK'S PROPOSAL IS FAR FROM A SURE THING CENTERMARK WANTS THE CITY OF AUSTIN TO KICK IN A 60 MILLION SUBSIDY EVEN MORE CRUCIAL IS THE NEED TO ATTRACT MERCHANTS SUCH AS NORDSTROM THAT AREN'T ALREADY IN THE CITY'S TWO OTHER MALLS HIGHLAND AND BARTON CREEK SQUARE MEANWHILE MALL DEVELOPER MELVIN SIMON PLANS TO BREAK GROUND ON A 11MILLIONSQUAREFOOT MALL IN NORTHWEST AUSTIN NEXT MONTH FIVE ANCHORS ARE LINED UP FOR THE DEVELOPMENT WHICH SHOULD BE OPEN BY THE SPRING OF 1996 DEVELOPERS SAY THE MALL WILL HAVE A STRONG ENTERTAINMENT COMPONENT SOME COMBINATION OF MOVIE THEATERS RESTAURANTS AND OTHER ACTIVITIES WE DON'T BELIEVE NOR DO THE PEOPLE WHO PROVIDE FINANCING FOR US THAT MALLS ARE DEAD SAYS WILLIAM J GARVEY EXECUTIVE VICE PRESIDENT DEVELOPMENT AT SIMON PROPERTY GROUP INC INDIANAPOLIS AT THE WOODLANDS NEAR HOUSTON HOMART DEVELOPMENT A UNIT OF SEARS ROEBUCK & CO HAS BEGUN CONSTRUCTION ON A ONEMILLIONSQUAREFOOT MALL ANCHORED BY FOLEYS SEARS DILLARDS AND MERVYNS DEPARTMENT STORES THAT'S A LOT LIKE HOMART'S NEARBY DEERBROOK MALL WE'RE TRYING TO CREATE A HOMOGENOUS AND INVITING ENVIRONMENT SAYS JERRY ROSENHOLTZ VICE PRESIDENT REGIONAL MALL DEVELOPMENT OTHER DEVELOPERS THOUGH ARE TAKING A SOMEWHAT DIFFERENT TACK THEY ARE CONVINCED THAT CONSUMERS WILL ACCEPT THE HIGHER COST OF MALL SHOPPING ONLY IF IT COMES WITH AN INTERESTING ENTERTAINING EXPERIENCE THE REGIONAL MALL HAS BECOME STANDARD INTERSTATE ISSUE SAYS JAMES W HUGHES ASSOCIATE DEAN OF THE SCHOOL OF PLANNING AND PUBLIC POLICY AT RUTGERS UNIVERSITY IN NEW BRUNSWICK NJ THE MAGIC OF 15 OR 20 YEARS AGO OF AN EXCITING DESTINATION PLACE IS TO SOME DEGREE PASSE IN TEXAS MOVIE THEATERS AND ICESKATING RINKS ARE BIG ATTRACTIONS MALL RETAILERS ALSO ARE RESPONDING BY BEEFING UP FOOD COURTS AND WOOING FUN STORES SUCH AS WALT DISNEY CO'S THE DISNEY STORE AND TIME WARNER INC'S WARNER BROS STORE AT AUSTIN'S HIGHLAND MALL WHICH NEXT YEAR PLANS A FOODCOURT RENOVATION A PIANO PLAYER ENTERTAINS MALL SHOPPERS WITH CLASSICAL POPULAR AND HOLIDAY MUSIC I DON'T THINK YOU DRIVE HERE TO HIGHLAND BECAUSE OF THE PIANO PLAYER SAYS VICE PRESIDENT AND GENERAL MANAGER STEVE BALAZS BUT WHEN YOU'RE SHOPPING IT'S KIND OF A NICE BACKGROUND TOUCH THE FOOD COURT WITHIN THE MALL IS A MAJOR DESTINATION FOR SHOPPERS IT'S IMPORTANT TO KEEP IT NEW AND FRESH AT DALLAS'S NORTHPARK CENTER DEVELOPERS HAVE CONSTRUCTED FOUNTAINS SURROUNDED BY LUSH GREENERY AND STOCKED WITH LIVE DUCKS IN ONE PART OF THE MALL A GIANT WIRE CAGE IS THE HOME OF DOZENS OF CHIRPING BIRDS PARROTS AND EXOTIC PLANTS AND AT MEMORIAL CITY MALL IN HOUSTON A 50000SQUAREFOOT ENTERTAINMENT COMPLEX THAT OPENED LAST MONTH INCLUDES CARNIVAL RIDES INTERACTIVE VIRTUALREALITY GAMES AND LASER TAG PLAYED IN MAZES WE APPROACH ENTERTAINMENT HERE AT MEMORIAL CITY AS IF IT WERE ANOTHER ANCHOR SAYS EXECUTIVE DIRECTOR CHUCK MCCURLEY YOU TRY TO DO EVERYTHING YOU CAN UNDER ONE ROOF TO BRING SHOPPERS TO YOUR MALL AND KEEP THEM MEANWHILE SOME TRADITIONAL MALLS HAVE DECIDED IT DOESN'T MAKE SENSE TO FIGHT THE DISCOUNTING TREND INSTEAD THEY ARE SIMPLY GOING ALONG WITH IT AT SAN ANTONIO'S CROSSROADS SHOPPING CENTER UPSCALE TENANTS HAVE BEEN REPLACED BY LOWERCOST STORES SUCH AS MONTGOMERY WARD AND BURLINGTON COAT FACTORY BUT WILL IT ALL BE ENOUGH TO ENSURE SURVIVAL CAN TEXAS MALL DEVELOPERS REALLY SUCCEED WHERE OTHERS CAN'T L&B GROUP A DALLASBASED REALESTATE INVESTMENT COMPANY THAT EARLIER THIS YEAR BOUGHT SAN ANTONIO'S POPULAR RIVERCENTER MALL FOR A REPORTED 100 MILLION INSISTS THAT ALL SIGNS ARE POSITIVE ALREADY L&B OFFICIALS SAY THE PURCHASE HAS EXCEEDED THEIR EXPECTATIONS I DON'T THINK THERE'S ANY REAL CONCERN ON OUR PART THAT THE MALL IS AN ANIMAL ON ITS WAY TOWARD EXTINCTION SAYS GREG KRAUS L&B'S ACQUISITIONS DIRECTOR DURING A RECENT VISIT WITH A REPRESENTATIVE OF AN EAST COAST PENSION FUND MR KRAUS SAYS THE VISITOR'S MESSAGE WAS FIND US TEXAS RETAIL OPPORTUNITIES WHEN THEY SAY RETAIL' THEY MEAN REGIONAL MALLS MR KRAUS SAYS THERE IS A DEFINITE FEELING AMONG INSTITUTIONAL INVESTORS THAT TEXAS IS A VERY DESIRABLE PLACE TO BE PUTTING THEIR MONEY TODAY SIZE 1500000 SQ FT SOURCE 1993 DIRECTORY OF MAJOR MALLS JOMURPA PUBLISHING INC SEE RELATED LETTER LETTERS TO THE EDITOR UNDERMALLED NO QUESTION ABOUT IT WSJ JAN 5 1994 9312220106 YY94 MM01 9401060026 931202 LEGAL BEAT LAWYERS CHOOSE ANIMAL RIGHTS AS PET PROJECTS BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL A DOZEN LAW STUDENTS AT RUTGERS UNIVERSITY EARNED SUBSTANTIAL COURSE CREDIT THIS YEAR ADVOCATING THE INTERESTS OF WILD HORSES ON NEVADA LAND AND COORDINATING THE CRIMINAL DEFENSE OF RADICAL ANIMALRIGHTS ACTIVISTS NATIONWIDE RUTGERS'S THREEYEAROLD PROGRAM IN NEWARK NJ REFLECTS THE SIGNIFICANT INCREASE IN STUDENTS' AND YOUNG LAWYERS' INTEREST IN ANIMALRIGHTS LAW IN RECENT YEARS AND THE GROWING NATIONWIDE RESPECTABILITY OF SUCH WORK IN ACADEMIA AND EVEN AT SOME LAW FIRMS LAST YEAR WHEN THE ANIMAL LEGAL DEFENSE FUND SAN RAFAEL CALIF PUT OUT ITS ANNUAL CALL FOR SUMMER INTERNS IT GOT 120 APPLICATIONS NORMALLY WHEN WE DID IT WE WOULD GET TWO DOZEN APPLICATIONS MAX SAYS EXECUTIVE DIRECTOR JOYCE TISCHLER A SIGNIFICANT NUMBER OF THEM SAID THEY WERE GOING TO LAW SCHOOL JUST TO BECOME AN ANIMALRIGHTS ATTORNEY THE HANDFUL OF PROFESSORS WHO TEACH ANIMALRIGHTS LAW ALSO SAY THEY ARE WITNESSING GROWING INTEREST IN THE FIELD THAT INTEREST IS SPILLING OVER INTO EVEN SOME OF THE MOST TRADITIONAL US LAW PRACTICES NEW YORK LAW FIRM PROSKAUER ROSE GOETZ & MENDELSOHN IS ONE OF SEVERAL MAJOR FIRMS THAT NOW DONATE TIME TO ANIMALRIGHTS LITIGATION LAWYERS AT THE FIRM DEVOTED AT LEAST 150 HOURS TO THE CAUSE LAST YEAR BY REPRESENTING ANIMALRIGHTS GROUPS GENERALLY IN LITIGATION AGAINST GOVERNMENT AGENCIES SOME EXPERIENCED CIVILRIGHTS ATTORNEYS ARE JUMPING ABOARD TOO INCLUDING VETERAN ADVOCATE WILLIAM KUNSTLER BETTER KNOWN FOR REPRESENTING POLITICAL RADICALS A SOCIETY THAT IS DISPASSIONATE ABOUT THE DELIBERATELY INFLICTED SUFFERING OF ANIMALS WILL BE JUST AS UNCARING ABOUT THAT OF SOME OF ITS HUMAN MEMBERS MR KUNSTLER TOLD AN ANIMALRIGHTS CONVENTION LAST YEAR PRACTICING ANIMALRIGHTS LAWYERS TEND TO CONCENTRATE ON TIGHTENING ENFORCEMENT OF ANIMALWELFARE REGULATIONS BECAUSE ANIMALS ARE CONSIDERED PROPERTY AND HAVE NO COMMONLAW RIGHTS AN EXAMPLE OF THE REGULATORY APPROACH IS AN EFFORT BY EAST ORANGE NJ ATTORNEY ISABELLE R STRAUSS TO SAVE TARO A NEW JERSEY DOG ON DEATH ROW IN A POUND MS STRAUSS IS ARGUING IN BRIEFS TO THE STATE SUPREME COURT THAT A STATE VICIOUSDOG STATUTE UNDER WHICH TARO WAS IMPOUNDED IS TOO BROADLY DRAWN AND DOESN'T TAKE INTO ACCOUNT NORMAL CANINE BEHAVIOR ANIMALRIGHTS WORK ALSO COVERS ISSUES AS DIVERSE AS ENDANGERED SPECIES VETERINARY PRACTICES WORKING CONDITIONS FOR PERFORMING ANIMALS PET CUSTODY AFTER DIVORCES AND THE LIVING CONDITIONS OF ANIMALS SLAUGHTERED FOR FOOD THE SIZE OF THE ANIMALRIGHTS BAR IS HARD TO MEASURE BUT MS TISCHLER SAYS MORE THAN 300 ATTORNEYS ARE MEMBERS OF A LEGAL NETWORK RUN BY THE ANIMAL LEGAL DEFENSE FUND THE NATION'S LARGEST ANIMALRIGHTS LEGAL ASSOCIATION YET DESPITE THE GROWING INTEREST IN THE SUBJECT AMONG LAWYERS MANY LAW SCHOOLS AND FIRMS ARE STICKING TO THE TRADITIONAL VIEW OF SUCH WORK THAT IT'S OF MARGINAL INTEREST AT BEST AND IS A POOR FIT WITH CURRICULA AND LAW PRACTICES DEVOTED PRIMARILY TO COMMERCIAL AND CRIMINAL LAW NEW YORK'S ELITE CRAVATH SWAINE & MOORE FOR INSTANCE OCCASIONALLY HAS REPRESENTED THE AMERICAN SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS BUT CRAVATH PRESIDING PARTNER SAMUEL C BUTLER TAKES PAINS TO NOTE THAT THIS ALL CAME BECAUSE OF ONE ASSOCIATE WHO WAS INTERESTED IN THE SUBJECT SIMILARLY NANCY GOLDBERG WILKS HEAD OF THE ANIMALPROTECTION COMMITTEE AT THE AMERICAN BAR ASSOCIATION SAYS LAWSCHOOL ADMINISTRATORS GENERALLY ARE UNRECEPTIVE TO PROPOSED ANIMALRIGHTS CLASSES WHEN SHE TAUGHT AT WEST VIRGINIA UNIVERSITY COLLEGE OF LAW RECENTLY SHE SAYS SHE ONLY BARELY PERSUADED THE SCHOOL TO APPROVE AN ANIMALRIGHTS SEMINAR THERE WAS A LOT OF RELUCTANCE BY THE DEAN AND THE FACULTY MS WILKS SAYS DONALD G GIFFORD THEN THE DEAN SAYS HE HAD MERELY SUGGESTED THAT A COURSE ALREADY ON THE CURRICULUM WOULD BE EASIER FOR HER TO GET APPROVAL TO TEACH EVEN RUTGERS'S CLINIC WHERE STUDENTS CAN EARN 12 OR MORE OF THEIR TOTAL CREDITS ON ANIMALRIGHTS WORK HAS TO BE PRIVATELY FUNDED BECAUSE PEOPLE ALWAYS ASK WHY NEW JERSEY IS FUNDING SOMETHING LIKE THIS SAYS CODIRECTOR ANNA CHARLTON MOST OFTEN THE ANIMALRIGHTS CLASSES ARE OFFERED AT SMALLER SCHOOLS OR THOSE WITH A LOCAL FOCUS STATE UNIVERSITY OF NEW YORK AT BUFFALO PACE UNIVERSITY SCHOOL OF LAW AND DETROIT COLLEGE OF LAW AMONG OTHERS CURRENTLY HAVE SUCH CLASSES TYPICALLY THE CLASSES OFFER A MIX OF REGULATORY ENVIRONMENTAL AND CONSTITUTIONAL LAW WITH SOME CRIMINAL LAW TOSSED IN BECAUSE MANY OF THE ATTORNEYS END UP DEFENDING ARRESTED PROTESTERS THERE IS NO SUCH THING AS ANIMAL RIGHTS LAW' YOU MAKE IT UP AS YOU GO ALONG SAYS GARY L FRANCIONE COHEAD OF THE RUTGERS CLINIC THERE IS ALSO NO SUCH THING AS A PROFITABLE ANIMALRIGHTS LEGAL PRACTICE FOR GRADUATES AS IN TRADITIONAL CIVILRIGHTS WORK WHICH SOME OF THE ANIMALRIGHTS CASES MOST RESEMBLE LAWYERS CAN SOMETIMES GET ATTORNEYS' FEES FROM THE LOSING SIDE BUT BECAUSE ANIMALS LACK LEGAL STANDING THE CASES ARE VERY TOUGH TO WIN MS STRAUSS IN NEW JERSEY SUPPLEMENTS HER WORK ON BEHALF OF THE CONDEMNED DOG TARO WITH REALESTATE COMMERCIAL AND PERSONALINJURY WORK EVEN AT WASHINGTON DC ANIMALRIGHTS SPECIALTY FIRM MEYER & GLITZENSTEIN NO MORE THAN 75 OF CASES DEAL WITH ANIMAL WELFARE THE REST INVOLVE OTHER PUBLICINTEREST WORK MY COLLEAGUES AT LAW FIRMS WERE MAKING 1500 A WEEK FOR THE SUMMER AND THAT'S WHAT I MADE THE ENTIRE SUMMERAND THAT WAS FROM A GRANT SAYS NATHAN J WINOGRAD A SECONDYEAR STANFORD UNIVERSITY LAW STUDENT WHO WORKED AS A SUMMER INTERN FOR THE ANIMAL LEGAL DEFENSE FUND HE ADDS I'M NOT GOING TO GET RICH ON THIS BUT IT'S WHAT I WANT TO DO SEE RELATED LETTER LETTERS TO THE EDITOR ANIMALRIGHTS EFFORTS HURT MEDICAL RESEARCH WSJ JAN 6 1994 9312020003 YY94 MM01 9401060023 931222 TEXAS JOURNAL HOW MUCH DO FIRMS HATE PUNITIVE DAMAGES A LOT BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL EVERYBODY KNOWS BUSINESS HATES PUNITIVE DAMAGES A SAN ANTONIO THINK THANK WANTS EVERYONE TO KNOW EXACTLY HOW MUCH IN A SURVEY BEING RELEASED TODAY BY THE TEXAS PUBLIC POLICY FOUNDATION 80 OF SMALL AND MIDSIZE BUSINESSES IN THE STATE SAID PUNITIVEDAMAGE AWARDS ARE GROWING AND AN EVEN LARGER MAJORITY 85 SAID THEY OUGHT TO BE CURBED THE SURVEY WAS CONDUCTED FOR THE FOUNDATION BY VOTER/CONSUMER RESEARCH OF BETHESDA MD AS THE FIRST PART OF A STUDY TO ASSESS THE ECONOMIC EFFECTS OF LARGE PUNITIVEDAMAGE AWARDS ON THE STATE'S ECONOMY THE SURVEY POLLED OWNERS OF 100 SMALL AND MIDSIZE COMPANIES AND 100 INHOUSE CORPORATE LAWYERS THE STUDY PROVIDES AMMUNITION FOR BUSINESS GROUPS THAT WILL SEEK FURTHER CHANGES IN THE STATE'S TORT SYSTEM WHEN THE TEXAS LEGISLATURE CONVENES IN 1995 IN RECENT SESSIONS THE LEGISLATURE HAS PASSED LAWS LIMITING PRODUCTLIABILITY SUITS AND CAPPING PUNITIVEDAMAGE AWARDS IN MANY CASES AT FOUR TIMES ACTUAL DAMAGES IN THE EYES OF STATE BUSINESS LEADERS THAT WAS JUST A START THE SURVEY SHOWS THAT PUNITIVE DAMAGES ARE VIEWED AS A SERIOUS ADDITIONAL COST OF DOING BUSINESS IN TEXAS SAYS TEX LAZAR PRESIDENT OF TEXAS PUBLIC POLICY FOUNDATION ALMOST ONETHIRD OF THE COMPANIES SURVEYED SAID THE THREAT OF LARGE PUNITIVEDAMAGE AWARDS AFFECTED PLANS TO EXPAND IN THE STATE ONEQUARTER SAID IT AFFECTED PRODUCT DESIGNS OR INTRODUCTIONS WHILE 12 SAID IT FORCED THEM TO LAY OFF EMPLOYEES A THIRD OF THOSE SURVEYED SAID THE THREAT OF LARGE PUNITIVE DAMAGES INCREASED THE COST OF THEIR INSURANCE AND 15 SAID THEY HAD TROUBLE GETTING ADEQUATE INSURANCE COVERAGE THE THREAT OF PUNITIVE DAMAGES HAS MADE HALF OF THE LAWYERS AND MORE THAN A THIRD OF THE BUSINESSES MORE LIKELY TO ACCEPT HIGHER SETTLEMENTS TO AVOID THE RISK OF COURT PLAINTIFFS' LAWYERS SAY SUCH CLAIMS ARE NONSENSE TEXAS IS IN THE MAINSTREAM AS FAR AS PUNITIVE DAMAGES ARE CONCERNED SAYS RICK FREEMAN PRESIDENTELECT OF THE TEXAS TRIAL LAWYERS ASSOCIATION PUNITIVE DAMAGES ARE AWARDED IN ONLY A TINY FRACTION OF CASES HE SAYS AND SOME OF THE LARGEST SUCH AS THE 103 BILLION AWARD IN THE PENNZOILTEXACO DISPUTE ARISE IN LEGAL DISPUTES BETWEEN CORPORATIONS IN THE SURVEY COMPANIES SAID THEY HAVE TAKEN VARIOUS INTERNAL STEPS TO REDUCE THE RISK OF BIG PUNITIVEDAMAGE AWARDS THE MOST COMMON 29 SAID THEY HAD ADOPTED BETTER SAFETY PROCEDURES IN ADDITION 7 OF THOSE SURVEYED SAID THEY HIRED MORE LAWYERS COMPANIES SHOWED A PRAGMATIC BENT WHEN ASKED FOR THE MOST EFFECTIVE STRATEGY TO REDUCE THE RISK OF A BIG DAMAGE AWARD NEARLY ONEQUARTER CITED IMPROVED TRAINING OF MANAGEMENT AND EMPLOYEES WHILE ONE IN FIVE MENTIONED COMPLIANCE WITH THE LAW ONE IN 10 OF THE INHOUSE LAWYERS SAID THE BEST STRATEGY WAS TO SETTLE COMPLAINTS EARLY SEE RELATED LETTER LETTERS TO THE EDITOR DOCTORS VS LAWYERS WSJ JAN 5 1994 9312220080 YY94 MM01 9401060022 931208 TEXAS JOURNAL WINNERS & LOSERS ANXIOUS BUREAUCRATS TEXAS TREASURER MARTHA WHITEHEAD HAS HIRED A PSYCHOLOGIST TO HELP EMPLOYEES COPE WITH HER RECOMMENDATION THAT HER AGENCY BE ABOLISHED CHAD WOOLERY THE NEW DALLAS INDEPENDENT SCHOOL DISTRICT SUPERINTENDENT WILL RECEIVE ANNUAL SALARY AND BENEFITS OF 163000 A 54 RAISE OVER HIS TAKE AS ACTING SUPERINTENDENT RALPH THE SWIMMING PIG SOUTHWEST TEXAS STATE UNIVERSITY WHICH PLANS TO BUY THE AQUARENA SPRINGS THEME PARK IN SAN MARCOS FOR 7 MILLION WILL PRESERVE RALPH'S JOB NASA AN FBI STING DUBBED OPERATION LIGHTNING STRIKE REPORTEDLY UNCOVERED EVIDENCE OF KICKBACKS AND BRIBES AT THE JOHNSON SPACE CENTER NEAR HOUSTON AUSTIN TANNING SALONS TANNING BEDS ARE RARELY USED IN NEW ADULT TANNING SALONS CROPPING UP IN AUSTIN INSTEAD CUSTOMERS WATCH NAKED WOMEN DANCE WAYNE AND GARTH CITING THE MOVIE'S VULGAR LANGUAGE AND SEXUAL REFERENCES SEVERAL MCDONALD'S RESTAURANTS IN THE PANHANDLE PULLED WAYNE'S WORLD FROM A PROMOTION SEE RELATED LETTER LETTERS TO THE EDITOR NASA A WINNER WSJ JAN 5 1994 9312080016 YY94 MM01 9401060021 931222 TEXAS JOURNAL RAYMOND NASHER THE DEAN OF TEXAS MALLS DISCUSSES THEIR PAST PRESENT AND FUTURE BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS THIS WEEK RAYMOND D NASHER HAS THE PERFECT OFFICE FOR A RETAILER HE LOOKS OUT ON THE PARKING LOT OF THE NORTHPARK CENTER IT'S PACKED ALMOST EVERY DAY LEADING UP TO CHRISTMAS AND MR NASHER CAN LOOK OUT HIS OFFICE WINDOW AND WATCH TRAFFIC BACK UP BUT IT'S ONLY FAIR THAT MR NASHER GETS SUCH A PRIME OFFICE HE DID AFTER ALL DEVELOP THE MALL IN 1965 AND HE IS OWNER OF NASHER CO WHICH OWNS THE MALL IT'S GOOD TRAFFIC HE SAYS I'LL TAKE THE BLAME FOR IT AT A TIME WHEN MANY MALL OWNERS ARE TRYING TO FIGURE OUT HOW TO COMPETE AGAINST DISCOUNT RETAILERS MR NASHER 72 YEARS OLD IS UNCONCERNED NORTHPARK ONE OF THE COUNTRY'S EARLIEST MALLS IS WIDELY VIEWED AS ONE OF THE MOST SUCCESSFUL FOR THE FISCAL YEAR THAT ENDED IN JULY NORTHPARK'S NEIMAN MARCUS STORE WAS THE CHAIN'S HIGHESTVOLUME STORE IN THE COUNTRY SHOPPERS COME TO TAKE ADVANTAGE OF THE MALL'S MANY AMENITIES AND IT HAS EARNED A NATIONAL REPUTATION AS A PLACE TO SEE GREAT WORKS OF ART FROM MR NASHER'S PERSONAL COLLECTION THIS WEEK MR NASHER TALKED WITH TEXAS JOURNAL ABOUT THE TEXAS AND NATIONAL RETAIL SCENE AND THE FUTURE OF THE SHOPPING MALL HERE ARE EXCERPTS FROM THE CONVERSATION TEXAS JOURNAL IS THE SHOPPING MALL DEAD MR NASHER THE TRADITIONAL SHOPPING MALL MAY BE DEAD IF IT HAS BECOME BORING OR OUTOFDATE IN REGARD TO THE CUSTOMER'S NEEDS AND REQUIREMENTS CENTERS ARE LIVING THINGS THEY HAVE TO BE LOOKED AT DAILY AND CHANGED YEARLY THEY'RE THERE FOR THE CONSUMER JUST TO BUILD A CENTER AND LEASE IT AND LEAVE IT MEANS IT MAY NOT BE ACCEPTED SO MANY OF THESE THINGS WERE BUILT THAT ONE HAS TO STAY AHEAD OF THE COMPETITION YOU HAVE TO GIVE THE CUSTOMER THE COMFORT LEVEL THEY HAVE TO FEEL SOMEWHAT UPLIFTED THEY HAVE TO FEEL SECURE IT HAS TO BE RELATIVELY EASY TO UTILIZE IT HAS TO BE FUNCTIONAL IT SHOULD BE A PLACE YOU WANT TO RETURN TO ON A WEEKLY BASIS TEXAS JOURNAL SEVERAL DEVELOPERS HAVE PLANS TO BUILD NEW REGIONAL MALLS IN TEXAS DO YOU THINK TEXAS NEEDS MORE MALLS MR NASHER IT'S VERY QUESTIONABLE ONE WOULD HOPE THAT THE DEVELOPERS WOULD NOT BE MOVING FORWARD TO ADD MORE SQUARE FOOTAGE TO THE SHOPPING CENTERS UNLESS THEY DID A GREAT DEAL OF RESEARCH IT HAS BEEN OVERSUPPLY THAT HAS BEEN THE DOWNFALL OF THE REALESTATE INDUSTRY THE FACT THAT FUNDS MIGHT OR MIGHT NOT BE AVAILABLE AND THAT INTEREST RATES ARE LOW IS NOT THE TOTAL ANSWER TEXAS JOURNAL HAS THE RISE OF THE DISCOUNTER BEEN BAD NEWS FOR TEXAS RETAILERS MR NASHER THE DISCOUNTERS WITH THEIR HUGE STORES AND HUGE OPERATIONS RELATE TO A CERTAIN SEGMENT OF OUR COMMUNITY THEY PROVIDE A VIABLE APPROACH TO PEOPLE WHO ARE LOOKING FOR THAT TYPE OF PRODUCT AND WHO CAN SERVICE THEMSELVES BUT MANY OF THEM HAVEN'T WORKED AREN'T A LOT OF THE DISCOUNT UNITS CLOSING UP AREN'T OTHERS MERGING YOU'VE GOT THAT RIGHT HERE IN DALLAS AND IN TEXAS WHY WOULD ONE WANT TO BUILD MORE OF THEM WHEN THOSE THAT ARE IN EXISTENCE NOW ARE LEAVING TEXAS JOURNAL WHY DO YOU RISK DISPLAYING EXPENSIVE ARTWORK IN SUCH AN OPEN PUBLIC PLACE MR NASHER THAT'S WHAT IT'S FOR IT'S FOR EDUCATIONAL EXPOSURE THERE ARE ABOUT 30 MAJOR PIECES OVER THERE NOW THAT'S WHY YOU WANT TO GO BACK THERE YOU WANT TO HAVE AESTHETIC AND INTELLECTUAL THINGS ALONG WITH COMMERCIAL THINGS WHETHER SHOPPERS UNDERSTAND IT OR NOT THEY SEE GREAT ART THEY SEE WONDERFUL FLOWERS AND THEY SEE WATER AND FOUNTAINS AND I THINK THAT'S WHY THEY COME BACK IT DOESN'T MAKE ANY DIFFERENCE IF THEY LIKE IT OR DON'T LIKE IT OR IF THEY THINK IT'S GOOD OR NOT GOOD AS LONG AS THEY SEE IT TEXAS JOURNAL WHAT DO YOU THINK OF THE NEW MALL OF AMERICA NEAR MINNEAPOLIS WHICH IS TOUTED AS THE LARGEST SHOPPING MALL IN THE COUNTRY MR NASHER I'M NOT OVERLY EXCITED ABOUT IT I FEEL QUANTITY IS NOT THE ANSWER THAT QUALITY IS THE ANSWER TO THE FUTURE I THINK THE ANSWER TO THOSE CENTERS WON'T BE KNOWN FOR DECADES YOU COULD HAVE A 100000SQUAREFOOT CENTER THAT I THINK WOULD BE MUCH MORE EXCITING THAN A FOURMILLIONSQUAREFOOT CENTER BECAUSE OF THE QUALITY AND SERVICE WITHIN THE SMALLER UNIT AS OPPOSED TO JUST THE MASS ASPECT OF IT IT'S LIKE IN BANKING AND SAVINGS AND LOANS AND LEVERAGED BUYOUTS WHERE EVERYBODY WAS GOING FOR QUANTITY AND THE END RESULT WAS A DISASTER TEXAS JOURNAL WHAT MAKES THE DIFFERENCE BETWEEN A SUCCESSFUL SHOPPING MALL AND AN UNSUCCESSFUL MALL MR NASHER WE'VE BEEN UPGRADING THE TENANTS ADDING THOSE LIKE TIMBERLAND BRINGING IN J CREW IT'S A SELECTIVITY PROCESS IT'S ONE OF THINKING THROUGH EACH PARTICULAR TENANT AND WHERE THEY'RE LOCATED IN THE CENTER I'M A GREAT BELIEVER IN MALL SHOPS BEING SMALLER RATHER THAN LARGER I THINK GOOD TENANTS CAN MERCHANDISE MUCH MORE EFFICIENTLY THAN THEY DO IF THEY ARE OVERSUPPLIED WITH SPACE RETAILING IS JUST ONE PART OF IT IT'S REALLY THE EXPERIENCE IT'S THE FACT THAT YOU WANT TO RETURN WHETHER YOU WANT TO EAT THERE OR SHOP THERE OR WALK THERE WE HAVE THOUSANDS OF PEOPLE WALKING THERE EVERY DAY WE OPEN THE PLACE AT 600 IN THE MORNING WHICH IS RIDICULOUS FROM THE COST STANDPOINT BUT WE OPEN IT FOR THE PEOPLE WHO WANT TO WALK SO THEY CAN GET THEIR EXERCISE IT'S A PEOPLE PLACE TEXAS JOURNAL DESCRIBE THE MALL OF THE FUTURE MR NASHER I THINK BANKS MANAGEMENT SERVICES AND FINANCIAL INSTITUTIONS WILL BE INTEGRATED THERE OUGHT TO BE LIBRARIES WITHIN SHOPPING CENTERS SO PEOPLE CAN HAVE MORE EDUCATIONAL OPPORTUNITIES SCHOOLS COULD BE PART OF SHOPPING CENTERS THEY'RE PERFECT FOR THAT TYPE OF THING HOPEFULLY THERE WILL BE BRANCHES OF THE MUSEUMS CULTURAL ELEMENTS AND ENTERTAINMENT ELEMENTS WITHIN A COMMUNITY I THINK THERE WILL BE MEDICAL OFFICES AND HEALTHCARE UNITS THAT WILL BE PART OF IT YOU'LL BE ABLE TO BRING CULTURE AND THE ARTS AND ENTERTAINMENT TO WHERE THE PEOPLE ARE AND WHERE IT'S COMFORTABLE FOR THEM TO PARK AND DINE AND HAVE ALL THE EXPERIENCES THEY CAN HAVE SEE RELATED LETTER LETTERS TO THE EDITOR UNDERMALLED NO QUESTION ABOUT IT WSJ JAN 5 1994 9312220120 YY94 MM01 9401060019 931229 TEXAS JOURNAL KEEPING SCORE WINNERS & LOSERS OF '93 DOMES AND LUNGS ARE WINNERS BIG PROJECTS AND DELL ARE LOSERS A TEXAS JOURNAL ROUNDUP IT WAS A GREAT YEAR FOR BUSINESS IN TEXAS NAFTA PASSED HOME BUILDING FLOURISHED AND AUTOMOBILE SALES REACHED AN EIGHTYEAR HIGH IT ALSO WAS A LOUSY YEAR FOR BUSINESS IN TEXAS CONGRESS SAID NO TO THE SUPERCONDUCTING SUPERCOLLIDER REALITY SAID NO TO THE BULLET TRAIN IT WAS IN OTHER WORDS A TYPICAL YEAR FOR BUSINESS PLENTY OF WINNERS PLENTY OF LOSERS HERE ARE SOME OF OUR PICKS FOR EACH IF THERE'S A LESSON IN 1993 IT'S A SIMPLE ONE THINK SMALL IN OCTOBER THE 11 BILLION SUPERCOLLIDER WAS KILLED BY A BUDGETCUTTING CONGRESS LEAVING A BIG HOLE IN THE GROUND AND A BIGGER ONE IN THE WAXAHACHIE ECONOMY THEN THE TEXAS SUPERTRAIN AN 8 BILLION PROPOSAL TO CONNECT THE STATE'S LARGEST CITIES WITH A 200MPH FRENCH TRAIN FIZZLED WHEN THE PROJECT'S LARGEST SHAREHOLDER CANCELED A 200 MILLION FINANCING PLAN EVEN THE NASA SPACE STATION WHICH EMPLOYS ABOUT 4500 WORKERS IN THE HOUSTON AREA WAS SCALED BACK AND REMAINS ON THE CHOPPING BLOCK FOR NEXT YEAR THIS TIME LAST YEAR THE RICHARDSON SOFTWARE DEVELOPER HAD JUST BEEN TOSSED OUT OF MICROGRAFX THE COMPANY HE HELPED FORM AFTER A BITTER DISPUTE WITH HIS BROTHER TODAY MR GRAYSON IS THE TALK OF THE MULTIMEDIA COMPUTER BUSINESS HIS PLANNED CHILDREN'S SOFTWARE CALLED TUNELAND HAS ATTRACTED INVESTMENTS FROM MICHAEL MILKEN AND MERV ADELSON AMONG OTHERS AND HE'S BACK ON THE SOCIAL THRONE A PARTY UNVEILING TUNELAND DREW HOLLYWOOD'S ALIST INCLUDING MICHELLE PFEIFFER MATTHEW MODINE AND SHELLY DUVALL AND WHAT DID DALLAS'S MAYOR HAVE TO SAY ABOUT ALL THIS THE NEWS THIS YEAR IN 1993 HAS BEEN ALL GOOD MR BARTLETT SAID IN AN INTERVIEW IN LATE OCTOBER SIMILAR HAPPY TALK DURING MR BARTLETT'S ANNUAL STATEOFTHECITY ADDRESS EARLIER THIS MONTH SPARKED WIDESPREAD CRITICISM INDOORSPORTS FANS HAD MORE TO CHEER ABOUT IN 1993 OF COURSE THOSE WHO LIKE TO LOOK UP AND ACTUALLY SEE THE SKY WEREN'T SO LUCKY SAN ANTONIO OPENED ITS GLEAMING NEW TAXBACKED ALAMODOME IN MAY AND NOW HOUSTON OFFICIALS ARE MULLING BUILDING THEIR CITY'S SECOND DOMED STADIUM A 70000SEATER THAT WOULD BE BIG ENOUGH TO ATTRACT THE SUPER BOWL AMID WHAT HAS BEEN ONE OF THE HOTTEST INITIAL PUBLIC OFFERING MARKETS EVER IN TEXAS THIS MATERNITYWEAR RETAILER LAID AN EGG AFTER GOING PUBLIC AT 12 A SHARE IN LATE SEPTEMBER THE COMPANY NOW TRADES AT ROUGHLY HALF THAT AT LAST GOOD NEWS FOR FANS OF BREATHING ONE OF THE NATION'S MOST POLLUTED STATES TEXAS BECAME ONE OF THE FIRST TO DRAFT A COMPREHENSIVE PLAN TO FIGHT AIR POLLUTION MEANWHILE TEXANS MAY ALSO BREATHE EASIER IF ATTORNEY GENERAL DAN MORALES SUCCEEDS IN HIS CRUSADE TO BAN SMOKING IN NINE MAJOR FASTFOOD CHAINS RESTAURANTS THAT DON'T VOLUNTARILY BAN SMOKING COULD GET SUED BY THE ATTORNEY GENERAL'S OFFICE AFTER SUPPORTING BILL CLINTON FOR PRESIDENT INDEPENDENT OIL COMPANIES COULDN'T GET WASHINGTON TO IMPOSE AN IMPORT FEE THEN GOT HAMMERED WHEN OIL PRICES PLUNGED TO FIVEYEAR LOWS WHILE CALIFORNIA FIRES GRABBED NATIONAL ATTENTION SOUTH TEXAS' LEGENDARY KING RANCH SUFFERED A FIRE THAT BURNED 40000 OF THE RANCH'S 825000 ACRES QUAIL HUNTERS ACCIDENTALLY SET THE BLAZE FOR THE THIRD TIME IN 45 YEARS HOUSTONITES VETOED ZONING MAKING IT CLEAR THEY LIKE THEIR HODGEPODGE ARRANGEMENT WHERE RESTAURANTS BARS AND TATTOO PARLORS CAN SET UP SHOP RIGHT NEXT TO PEOPLE'S HOMES THE CHAIRMAN OF TENNECO WAS TOLD BY DOCTORS THAT THE LIFETHREATENING BRAIN TUMOR THEY DISCOVERED EARLY IN THE YEAR HAD STOPPED GROWING AND WAS BEGINNING TO BREAK UP DESPITE A PLEA FOR LENIENCY FROM FORMER US HOUSE SPEAKER JIM WRIGHT THIS ONETIME DEMOCRATIC PARTY FUNDRAISER AND THRIFT OWNER WAS SENTENCED TO FIVE YEARS IN PRISON AND ORDERED TO PAY RESTITUTION OF 334000 AFTER HIS CONVICTION FOR BANKRUPTCY FRAUD AND MONEY LAUNDERING ONCE JUST THE PUNCH LINE TO PARTY JOKES TEXAS' THRIFTS LED THE COUNTRY IN EARNINGS IN 1993'S SECOND AND THIRD QUARTERS THE FORMER ECONOMIC ADVISER TO PRESIDENT NIXON AND CHAIRMAN OF AMERICAN FEDERAL BANK TURNED OUT TO BE A PATHOLOGICAL FREQUENTFLIER HE WAS CONVICTED OF FRAUD FOR CHEATING AMERICAN AIRLINES AS WELL AS HIS EMPLOYER OUT OF THOUSANDS OF DOLLARS BY SUBSTITUTING EXPIRED DISCOUNT TICKETS FOR FULLFARE TICKETS IN MARCH A FEDERAL JUDGE SENTENCED HIM TO 33 MONTHS IN FEDERAL PRISON AND ORDERED HIM TO PAY 53000 IN RESTITUTION A 60000 FINE AND 54000 TO COVER THE COSTS OF HIS CONFINEMENT AND SUPERVISORY LEAVE WHO SAYS YOU CAN'T TIME THE STOCK MARKET THE OIL COMPANY SOLD NEARLY 82 MILLION SHARES OF CHEVRON STOCK AT 89 EACH IN MIDNOVEMBER JUST BEFORE THE LATEST PLUNGE IN OIL PRICES SHAVED 3 OFF CHEVRON'S STOCK PRICE FOR THIS AUSTIN MAILORDER COMPUTER MAKER 1993 BEGAN WITH AN SEC INVESTIGATION THEN THINGS GOT REALLY BAD THE GOVERNMENT PROBE INTO DELL'S HANDLING OF ITS FOREIGNCURRENCY OPERATIONS WAS FOLLOWED BY A BUNGLING OF A NEW LINE OF NOTEBOOK PCS AND THE FIRST QUARTERLY LOSS IN THE COMPANY'S HISTORY JUST BEFORE YEAR'S END BOBBY INMAN A KEY MEMBER OF DELL'S BOARD AND CHAIRMAN OF ITS AUDIT COMMITTEE ANNOUNCED HE WAS LEAVING TO BECOME DEFENSE SECRETARY THE SEC INQUIRY MEANTIME REMAINS UNRESOLVED HOUSTON'S MAYOR WAS REELECTED WITH 91 OF THE VOTE AND BECAME A HIGHPROFILE CLINTON CRONY MAINLY BECAUSE HE HAS FOUND INNOVATIVE BUT CONTROVERSIAL WAYS TO PAY FOR MORE COPS AND PUT A DENT IN HOUSTON CRIME STATISTICS IN THE SPACE OF BARELY A WEEK THIS WILLIAMSON COUNTY COMMISSIONER MANAGED TO APPEAR BOTH NARROWMINDED AND WEAK FIRST DECLARING HE DIDN'T WANT TO BE KNOWN AS THE MAN WHO BROUGHT HOMOSEXUALITY TO THIS COUNTY HE VOTED AGAINST A 750000 TAX ABATEMENT FOR APPLE COMPUTER INC WHICH EXTENDS HEALTH BENEFITS TO PARTNERS OF GAY AND LESBIAN EMPLOYEES THEN UNDER PRESSURE FROM BUSINESS LEADERS AND POLITICIANS WHO DIDN'T WANT TO BLOW THE POTENTIAL FOR 1700 NEW JOBS HE FLIPFLOPPED AND CAST THE DECIDING VOTE IN FAVOR OF A VIRTUALLY IDENTICAL PACKAGE OF TAX BREAKS THE TONY HOUSTON NEIGHBORHOOD SAW SECURITY AND PRESTIGE SURGE WHEN FORMER PRESIDENT BUSH BUILT A HOME THERE THE CITY ACTUALLY CLOSED OFF A STREET TO THWART SIGHTSEERS THE HOTEL AND CONFERENCE CENTER'S MAIN CLAIM TO FAME WAS SERVING AS MR BUSH'S OFFICIAL HOME ADDRESS NOT ANYMORE THE YEAR STARTED OFF SO WELL TEXAS INSURERS PUSHED THROUGH LEGISLATION THAT WEAKENED MUCH OF THE SWEEPING INDUSTRY REFORMS APPROVED IN 1991 THEY ALSO WON A REQUIREMENT THAT THE NEW INSURANCE COMMISSIONER WHO WOULD HAVE GREATER POWER THAN THE OLD THREEMEMBER BOARD HAD TO HAVE AT LEAST FIVE YEARS OF INSURANCE EXPERIENCE ESSENTIALLY RULING OUT GOV RICHARDS'S TOUGH PROCONSUMER APPOINTEES TO THE OLD BOARD SO WHOM DID THE INSURERS GET THE GOVERNOR IN OCTOBER APPOINTED J ROBERT HUNTER A CONSUMER ADVOCATE AND ONE OF THE INDUSTRY'S HARSHEST CRITICS AS COMMISSIONER AFTER SPENDING FIVE YEARS IN HIS FORT WORTH OFFICE QUIETLY ACQUIRING HOSPITALS THE CHIEF EXECUTIVE OF COLUMBIA HOSPITAL CORP EMERGED AS A HEALTHCARE SUPERNOVA IN AUGUST HE MERGED HIS COMPANY WITH GALEN HEALTH CARE INC IN A 32 BILLION STOCK SWAP LESS THAN SIX WEEKS LATER IT ANNOUNCED STILLPENDING PLANS TO ACQUIRE HCAHOSPITAL CORP OF AMERICA FOR 57 BILLION IN STOCK CREATING THE NATION'S LARGEST FORPROFIT HOSPITAL CHAIN CHARITY MEDICAL CARE ISN'T UP TO THE KINDHEARTEDNESS OF HOSPITAL BOARDS ANYMORE UNDER A LAW PASSED THIS YEAR TEXAS' NONPROFIT HOSPITALS MUST EARN THEIR TAX EXEMPTIONS BY PROVIDING A REASONABLE AMOUNT OF FREE CARE IN APRIL THE HOUSTON CARRIER EMERGED FOR THE SECOND TIME FROM BANKRUPTCY PROTECTION WITH NEW OWNERS AND LESS DEBT THE AMR CORP CHAIRMAN LOST FACE AFTER VOWING TO KEEP AMERICAN AIRLINES RUNNING DESPITE A STRIKE BY ITS FLIGHT ATTENDENTS AND THEN BEING FORCED INTO ARBITRATION WITH THE UNION AT THE BEHEST OF PRESIDENT CLINTON AMERICAN UNPREPARED FOR THE SUCCESS OF THE STRIKE HAS SAID IT WILL LOSE 160 MILLION BECAUSE OF THE FIVEDAY WALKOUT IT ALL COMES AROUND EVENTUALLY DEMAND FOR DOWDY WORK CLOTHES MADE BY FORT WORTH'S WILLIAMSONDICKIE MANUFACTURING CO HAS SKYROCKETED NOW THAT HIPHOP STARS AND CALIFORNIA GANGS HAVE ANNOINTED THEM AS THE HEIGHT OF COOL AFTER SEVERAL UNSUCCESSFUL TRIES ADVOCATES OF MICROBREWERIES FINALLY PERSUADED STATE LAWMAKERS TO THROW OPEN THE DOORS BY REPEALING AN OLD LAW THAT HAD FORBIDDEN ANY ESTABLISHMENT THAT BREWS BEER FROM SELLING BEER ON THE PREMISES AT THIS RATE THE STOCK IS GOING TO THE MOON CLAIMED THIS AUSTIN FILM COMPANY AS ITS SHARES ROCKETED ABOVE 9 EACH IN ANTICIPATION OF THE RELEASE OF ITS ANIMATED MOVIE HAPPILY EVER AFTER BUT THE MOVIE BOMBED AND THE STOCK CAME BACK TO EARTH CURRENTLY TRADING AT AROUND 1 A SHARE TWO OF DALLAS'S PREMIER LUXURY RESTAURANTS ACTUELLE AND ROUTH STREET CAFE CLOSED DUE TO SAGGING SALES WHILE SCORES OF OTHER MILITARY BASES NATIONWIDE FELL TO THE BUDGET AX TEXAS ESCAPED RELATIVELY UNSCATHED MANAGING TO HANG ON TO FACILITIES SUCH AS KELLY AIR FORCE BASE IN SAN ANTONIO AND THE CORPUS CHRISTI NAVAL AIR STATION JUST BECAUSE SEE RELATED LETTER LETTERS TO THE EDITOR FREEDOM'S THE LOSER WSJ JAN 5 1994 9312290138 YY94 MM01 9401060018 931229 TEXAS JOURNAL LETTERS TO THE EDITOR BACKING THE BULLET TRAIN WITH CHANGES EARLIER THIS MONTH MY COMPANY MORRISON KNUDSEN HAD TO WITHDRAW ITS GUARANTEE OF THE 200 MILLION DEBTEQUITY ISSUE FOR THE TEXAS HIGHSPEED RAIL PROJECT WE HAD TO WITHDRAW BECAUSE WE SIMPLY COULD NOT ASK OUR SHAREHOLDERS TO BEAR THIS EXPOSURE ALONE EVERYONE INVOLVED WAS ANGRY AND FRUSTRATED WITH US AND THAT IS UNDERSTANDABLE BUT THE IMPORTANT THING AT THIS JUNCTURE IS PLEASE DO NOT KILL THE MESSENGER JUST BECAUSE YOU DO NOT LIKE THE MESSAGE WHAT IS THE MESSAGE MORRISON KNUDSEN CORP IS COMMITTED TO BUILDING THE 8 BILLION 469MILE SYSTEM CONNECTING SEVEN MAJOR TEXAS CITIES WE ARE THE LARGEST STOCKHOLDER IN TEXAS TGV CORP AND WE WANT TO CONTINUE THE PROJECT THE INVESTOR PARTNERS STOCKHOLDERS AND STAFFS HAVE INVESTED MANY MONTHS OF HARD WORK AND OVER 30 MILLION AS A SOLID DEMONSTRATION OF THEIR COMMITMENT THREE YEARS AGO WE THOUGHT THAT THE PRIVATE SECTOR COULD DO IT 100 BUT IN THIS PAST YEAR WE'VE BEEN ABLE TO DEVELOP STUDIES TO THE POINT THAT WE NOW HAVE HARDER DATA THE INFORMATION TEXAS TGV FURNISHED THE INVESTMENT BANKERS SHOWS THAT THE PRIVATE SECTOR CAN PROVIDE AS MUCH AS 75 OF THE MONEY IF THE PUBLIC SECTOR WILL FURNISH 25 DURING THE NEGOTIATION OF THE FRANCHISE AGREEMENT OUR COMPANY AGREED TO THE 170 MILLION MILESTONE WHICH CALLED FOR TEXAS TGV TO COME UP WITH 170 MILLION IN EQUITY FINANCING COMMITMENTS BY THE END OF 1993 OR FACE DEFAULTING ON ITS FRANCHISE AGREEMENT BUT THE MONEY WAS STRICTLY A SYMBOL AND THAT AMOUNT IS NOT NEEDED FOR THE PROJECT AT THIS TIME THE CRITICAL ELEMENT AT THIS STAGE IS THE ENVIRONMENTAL IMPACT STATEMENT IF WORK ON THE STATEMENT IS SHUT DOWN IT MAY TAKE MONTHS AND MILLIONS OF DOLLARS TO RESTART MORRISON KNUDSEN GEC ALSTHOM INC AND BOMBARDIER CORP HAVE BEEN FUNDING IT WITH OUR CASH CONTRIBUTIONS TO THE TEXAS HIGH SPEED RAIL AUTHORITY AFTER THE IMPACT STATEMENT IS FINISHED THEN THE TIME FOR THE 170 MILLION DEBTEQUITY MONEY WILL BE NEEDED THAT'S HALF OF THE MESSAGE SO WHAT IS THE MISSING PIECE OF THE PUZZLE OUR COMPANY WANTS TO GO AHEAD WE KNOW HOW TO DESIGN AND BUILD THIS SYSTEM WE NOW KNOW THE INVESTMENT BANKERS HAVE HIGH INTEREST WE ARE SO CLOSE TO SUCCESS THE CITIES COUNTIES AND THE TEXAS DEPARTMENT OF TRANSPORTATION MUST BE PARTNERS TOO AND HAVE ACCESS TO FEDERAL FUNDS TO FURNISH THE PUBLIC SECTOR'S SHARE DURING MY TIME AS THE FEDERAL RAILROAD ADMINISTRATOR THE US DEPARTMENT OF TRANSPORTATION WANTED TO INCLUDE THE TEXAS HIGHSPEED RAIL CORRIDOR AS ONE OF THE FEDERAL HIGHSPEED RAIL CORRIDORS BUT THE STATE PROHIBITION AGAINST USING TEXAS FUNDS FOR THE PROJECT KEPT WASHINGTON FROM HELPING THIS CORRIDOR NEEDS TO BE FEDERALLY DESIGNATED AS PART OF THE EMERGING NATIONAL NETWORK SEE RELATED LETTER LETTERS TO THE EDITOR STOP THE BULLET WSJ JAN 5 1994 9312290063 YY94 MM01 9401050157 931124 TEXAS JOURNAL A CORNY STOCKBROKER TALKS TO THE MASSES BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS WALK INTO DAVID JOHNSON'S OFFICE AND IT IS IMMEDIATELY CLEAR THAT HE ISN'T JUST ANOTHER STOCKBROKER IN FACT IT'S HARD TO FIGURE OUT WHAT HE IS ALTHOUGH HIS OFFICIAL TITLE IS ASSISTANT MANAGER OF SMITH BARNEY SHEARSON'S NORTH DALLAS BRANCH THAT DOESN'T EXPLAIN THE TWO MICROPHONES THAT JUT OUT FROM BEHIND HIS DESK OR THE TELEVISION MONITORS OR THE KLEIG LIGHTS OVERHEAD ON FRIDAY FOR INSTANCE AS THE AMERICAN AIRLINES FLIGHT ATTENDANTS STRIKE WAS GETTING OFF THE GROUND EVERYBODY SEEMED TO BE CLAMORING FOR MR JOHNSON'S OPINION BUT IT WASN'T JUST CUSTOMERS SEEKING BUY AND SELL ADVICE THERE WERE ALSO REPORTERS FROM NEWSWEEK CNN AND THE CBS EVENING NEWS TO NAME A FEW ALL LINED UP TO RECORD HIS THOUGHTS AND THAT WAS IN ADDITION TO HIS WEEKLY THREEMINUTE COMMENTARY FOR THE 225 MILLION NATIONWIDE LISTENERS TO AMERICAN PUBLIC RADIO'S MARKETPLACE SEGMENT AND HIS 12 DAILY FEEDS TO KRLD RADIO IN DALLAS EACH ONE LASTING UP TO TWO MINUTES AND HIS TWICEAWEEK COMMENTARIES ON DALLAS'S WFAA CHANNEL 8 AND HIS WEEKLY COMMENTARY ON KERA RADIO ALSO IN DALLAS WHO IS THIS GUY ANYWAY MY BASIC PURPOSE IS TO MAKE BUSINESS NEWS UNDERSTANDABLE TO PEOPLE WHO ARE FORCED KICKING AND SCREAMING TO GIVE A DAMN ABOUT IT SAYS THE 44YEAROLD MR JOHNSON TO HIS FANS HE DOES JUST THAT TURNING OFTENESOTERIC ECONOMIC NEWS INTO SOMETHING THAT GIVES IT RELEVANCE TO EVERYONE HE GIVES MARKETPLACE A UNIQUE PERSPECTIVE BECAUSE HE'S A THOUSAND MILES AWAY FROM WALL STREET SAYS CAMERON SANDERS A FORMER EDITOR FOR MARKETPLACE BUT HE ADDS I'VE HEARD COMMENTS OCCASIONALLY THAT HE IS A LITTLE TOO CORN PONE A LITTLE TOO CUTE A LITTLE TOO CORNY TOO CUTE TOO CORNY CONSIDER FOR INSTANCE THE TIME WHEN SOME OF THE BIGGEST INVESTORS WERE BOTTOMFISHING SEARCHING FOR STOCKS THAT HAD BEEN BATTERED AND WERE DUE FOR A RISE AIM LOW HE ADVISED HIS AUDIENCE BECAUSE THE SMART MONEY WAS RIDING SHETLANDS OR THE TIME WHEN HE SAID A LACKLUSTER MARKET WAS JUST SITTING THERE LIKE AN ARMADILLO ON THE ROAD STINKING IT UP IT'S ALL A FAR CRY FROM MR JOHNSON'S ORIGINAL GAME PLAN A NATIVE OF DALLAS HE WENT TO THE UNIVERSITY OF THE SOUTH IN SEWANEE TENN IN THE LATE 1960S DETERMINED TO BE A WRITER BUT AFTER TAKING A YEAR OFF FROM COLLEGE TO WORK IN THE BACK OFFICE AT EF HUTTON IN DALLAS HE WAS HOOKED I LOVED THAT THE BROKERAGE BUSINESS WAS VERY DYNAMIC MR JOHNSON SAYS IT WAS HEAVEN IN 1972 HE JOINED THE FIRM AS A BROKER SOON ONE OF HIS FRIENDS AT DALLAS'S PUBLICTELEVISION STATION KERA CHANNEL 13 ASKED HIM TO ADLIB DURING PLEDGE BREAKS AND AUCTIONS HIS CAREER AS A RADIO BUSINESS ANALYST WAS BORN CHANNEL 13 OFFERED HIM HIS OWN BUSINESS SHOW BUSINESS EDITION WITH DAVID JOHNSON KRLD RADIO ASKED HIM IN THE EARLY 1980S TO SERVE AS THE STATION'S BUSINESS ANALYST THE JOB AT WFAA CHANNEL 8 BEGAN IN 1985 AND IN 1989 MR JOHNSON CAME TO MARKETPLACE GOOD QUESTION MR JOHNSON READS FIVE NEWSPAPERS EVERY MORNING AND TUNES INTO CNN AND THE CABLE NEWS BUSINESS CHANNEL BUT OTHER THAN THAT HIS ONLY PREPARATION IS 20 YEARS OF WATCHING STOCKS BONDS AND THE ECONOMY FEW AT MARKETPLACE HAVE EVER SEEN MR JOHNSON TO THEM HE'S JUST A VOICE IN DALLAS MARKETPLACE HOST DAVID BRANCACCIO IMAGINES HIM THIS WAY NICE SUITS NOT MUCH HAIR AND SIDEBURNS THAT ARE LONGER THAN FASHION WOULD DICTATE CLOSE NICE SUITS HASN'T LOST HIS HAIR SIDEBURNS CLOSELY CROPPED DESPITE HIS STARDOM MR JOHNSON SAYS HIS PRIMARY JOB IS AS A STOCKBROKER HE SAYS HE HAS LOST ONLY ONE CLIENT WHO CLAIMED HIS RADIO DUTIES IMPAIRED HIS BROKER RESPONSIBILITIES CAROL PASK A 61YEAROLD RICHARDSON HIGH SCHOOL TEACHER TEAMED UP WITH MR JOHNSON 11 YEARS AGO WHEN HER HUSBAND DIED CALLING HIM HER CELEBRITY BROKER MRS PASK LISTENS TO MR JOHNSON'S RADIO REPORTS AND REFRAINS FROM CALLING HIM WHEN SHE KNOWS HE'LL BE ON THE AIR STILL SHE SAYS WHEN I DO CALL EVEN IF I CATCH HIM AS HE'S ABOUT TO GO ON HE ALWAYS ACTS LIKE YOU'RE JUST THE PERSON HE WANTED TO TALK TO 9401050154 931124 TEXAS JOURNAL WHAT PRICE NAFTA TEXAS POLITICIANS MAY SOON FIND OUT BY ROBERT TOMSHO THE VOTE IS OVER BUT THE NORTH AMERICAN FREE TRADE AGREEMENT WILL STILL BE A HOT ISSUE WHEN THE TEXAS AFLCIO'S COMMITTEE ON POLITICAL EDUCATION MEETS IN AUSTIN IN JANUARY SOME UNION LEADERS ARE QUIETLY LOBBYING TO CLOSE THE MEETING WHERE THE COMMITTEE ENDORSES STATE CANDIDATES AND DOLES OUT POLITICAL CONTRIBUTIONS TO POLITICIANS WHO SUPPORTED NAFTA THAT MIGHT INCLUDE GOV ANN RICHARDS WHO LOBBIED HARD FOR THE TREATY AND FACES A TOUGH REELECTION BATTLE NEXT YEAR WITH REPUBLICAN BUSINESSMAN GEORGE W BUSH SON OF THE FORMER PRESIDENT OF THE STATE'S 21 DEMOCRATIC CONGRESSMEN 15 VOTED FOR THE TRADE AGREEMENT CLOSING THE MEETING COULD SIGNAL THAT DEMOCRATIC NAFTA BACKERS SHOULD EXPECT SMALLER CONTRIBUTIONS AND FAR LESS CAMPAIGN HELP IN 1994 SOME FORMER CAMPAIGN WORKERS AMONG THE RANK AND FILE WILL BURN AT THE STAKE BEFORE THEY COME BACK SAYS TEXAS AFLCIO PRESIDENT JOE GUNN SOME OF THE UNION'S TEXAS LEADERS SAY IT SHOULD SHIFT FUNDS FROM POLITICAL CONTRIBUTIONS TO A PLANNED ORGANIZING SCHOOL NAFTA'S PASSAGE THEY SAY MAY HAVE HEIGHTENED NONUNION TEXANS' ANXIETY ABOUT JOBS MOVING TO MEXICO MAKING THEM RIPE FOR ORGANIZING CLEARLY SPENDING ON THE POLITICAL SIDE DIDN'T GET US WHERE WE WANTED TO GO SAYS ONE UNION LEADER THE VOTE IS OVER BUT THE NORTH AMERICAN FREE TRADE AGREEMENT WILL STILL BE A HOT ISSUE WHEN THE TEXAS AFLCIO'S COMMITTEE ON POLITICAL EDUCATION MEETS IN AUSTIN IN JANUARY SOME UNION LEADERS ARE QUIETLY LOBBYING TO CLOSE THE MEETING WHERE THE COMMITTEE ENDORSES STATE CANDIDATES AND DOLES OUT POLITICAL CONTRIBUTIONS TO POLITICIANS WHO SUPPORTED NAFTA THAT MIGHT INCLUDE GOV ANN RICHARDS WHO LOBBIED HARD FOR THE TREATY AND FACES A TOUGH REELECTION BATTLE NEXT YEAR WITH REPUBLICAN BUSINESSMAN GEORGE W BUSH SON OF THE FORMER PRESIDENT OF THE STATE'S 21 DEMOCRATIC CONGRESSMEN 15 VOTED FOR THE TRADE AGREEMENT CLOSING THE MEETING COULD SIGNAL THAT DEMOCRATIC NAFTA BACKERS SHOULD EXPECT SMALLER CONTRIBUTIONS AND FAR LESS CAMPAIGN HELP IN 1994 SOME FORMER CAMPAIGN WORKERS AMONG THE RANK AND FILE WILL BURN AT THE STAKE BEFORE THEY COME BACK SAYS TEXAS AFLCIO PRESIDENT JOE GUNN SOME OF THE UNION'S TEXAS LEADERS SAY IT SHOULD SHIFT FUNDS FROM POLITICAL CONTRIBUTIONS TO A PLANNED ORGANIZING SCHOOL NAFTA'S PASSAGE THEY SAY MAY HAVE HEIGHTENED NONUNION TEXANS' ANXIETY ABOUT JOBS MOVING TO MEXICO MAKING THEM RIPE FOR ORGANIZING CLEARLY SPENDING ON THE POLITICAL SIDE DIDN'T GET US WHERE WE WANTED TO GO SAYS ONE UNION LEADER 9401050141 931124 TEXAS JOURNAL STATE BANK FOR POLLUTIONCONTROL CREDITS GENERATES LOW INTEREST AMONG BUSINESS BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL IT WON'T HAVE MARBLE COLUMNS OR COMPETITIVE INTEREST RATES BUT THE STATE'S NEW BANK FOR POLLUTIONCONTROL CREDITS IS NEARLY READY FOR BUSINESS NOW THE BIG QUESTION IS WILL IT ATTRACT ENOUGH QUALIFIED CUSTOMERS TO SUCCEED AS EARLY AS NEXT WEEK THE TEXAS NATURAL RESOURCES CONSERVATION COMMISSION WILL DECIDE WHETHER TO ACCEPT THE FIRST SEVEN PROSPECTIVE DEPOSITORS OF AIRPOLLUTION CREDITS WITH THAT TEXAS WILL JOIN A A DOZEN STATES THAT MAKE AN OFFICIAL MARKET IN AIR POLLUTION ENABLING COMPANIES THAT CUT EMISSIONS TO SELL CREDITS TO OTHER BUSINESSES THAT WANT TO INCREASE THEIRS BUT IT ISN'T CLEAR WHETHER THE BANK WILL ATTRACT ENOUGH BUYERS AND SELLERS TO CREATE A WORKABLE MARKET SOME COMPANIES SAY THEY WOULD RATHER KEEP THEIR CREDITS FOR POSSIBLE FUTURE USE WHILE OTHERS ARE RELUCTANT TO TRUST THEIR CREDITS TO A BANK RUN BY STATE REGULATORS AND CONFUSION IS WIDESPREAD AMONG PROSPECTIVE CUSTOMERS ABOUT EXACTLY HOW THE BANK WILL OPERATE A LOT OF FIRMS ARE WATCHING THE GUYS OUT IN FRONT TO SEE WHAT HAPPENS TO THEIR CREDITS AND HOW MUCH MONEY THEY GET SAYS ROSALIE DAY AIRQUALITY ECONOMIST AT THE HOUSTONGALVESTON AREA COUNCIL OF GOVERNMENTS THEN THEY'LL DECIDE WHETHER THEY WANT TO GET INVOLVED REGULATORS ARE ALREADY TRYING TO MAKE THE POLLUTIONCREDIT BANK AUTHORIZED IN MARCH BUT ONLY NOW STARTING TO DRAW CUSTOMERS MORE ATTRACTIVE TO DEPOSITORS IT IS PART OF THE STATE'S EFFORTS TO BRING THE SMOGGIEST TEXAS CITIES INTO COMPLIANCE WITH THE FEDERAL CLEAN AIR ACT THAT LAW CAPS NEW INDUSTRIAL POLLUTION IN THE STATE'S FOUR NONATTAINMENT AREAS DALLAS HOUSTON BEAUMONT AND EL PASO THE BANK IS MEANT TO PREVENT ECONOMIC DEVELOPMENT IN THESE CITIES FROM SCREECHING TO A HALT BY ALLOWING NEW POLLUTERS TO BUY CREDITS THE BANK KEEPS A SMALL SHARE OF EACH CREDIT SOLD REDUCING OVERALL EMISSIONS BUT COMPANIES AND CONSULTANTS SAY THE CREDIT PROGRAM IN ITS PRESENT FORM MAY NOT BE ATTRACTIVE ENOUGH TO ENCOURAGE WIDE PARTICIPATION ONE DISINCENTIVE IS THAT RATHER THAN APPRECIATING LIKE CASH DEPOSITS THE POLLUTION CREDITS WILL DEPRECIATE 3 A YEAR AND WILL LOSE ALL THEIR VALUE AFTER FIVE YEARS THAT PROVISION MEANT TO PREVENT COMPANIES FROM SIMPLY SWAPPING THE SAME AMOUNT OF POLLUTION AROUND WAS ADDED TO PLACATE ENVIRONMENTALISTS IT'S ALMOST AS IF THEY DESIGNED THE BANK TO DISCOURAGE TRADING SAYS EMISSIONS CREDITS BROKER JOSH MARGOLIS HEAD OF THE AIRTRADE SERVICES GROUP OF DAMES & MOORE INC A CALIFORNIA CONSULTING FIRM THE FIVEYEAR LIFETIME FOR TEXAS CREDITS IS ONE OF THE SHORTEST IN THE NATION HE ADDS AND RULES ARE FUZZY ON SUCH IMPORTANT ELEMENTS AS HOW TO CALCULATE CREDITS SOME SKEPTICS SAY SELLING CREDITS EXPECTED TO BRING 5000 TO 10000 A TON WILL ALSO BRING COMPANIES UNWANTED SCRUTINY FROM THE TNRCC WHICH MUST VERIFY THAT CREDIT APPLICANTS MADE THE CLAIMED REDUCTIONS MANY OF THESE COMPANIES DON'T TRUST REGULATORY AGENCIES MS DAY SAYS THIS WARINESS MAY HAVE SOME BASIS UNDER CURRENT RULES A COMPANY THAT PIONEERS THE USE OF A POLLUTIONCONTROL DEVICE WILL GET CREDITS BUT IF THE STATE SEEING THAT COMPANY'S SUCCESS LATER MAKES THE EQUIPMENT MANDATORY IT CAN REVOKE THE CREDITS SAYS JAMES E DODDS CHIEF OF THE TNRCC'S MARKETABLEPERMITS SECTION HE ADDS THAT THE AGENCY IS DRAFTING A SAFEHARBOR PROVISION THAT WOULD PROTECT CREDITS OF COMPANIES THAT BUY EQUIPMENT BEFORE IT IS REQUIRED THE PROGRAM ALSO FACES AN IMAGE PROBLEM PROFITING BY SELLING A POLLUTION CREDIT ISN'T GOOD PUBLIC RELATIONS ONE OF THE FIRST TEXAS FACILITIES TO APPLY FOR A CREDIT IS SQUEAMISH ABOUT SELLING IT DUPONT CO WHOSE LA PORTE PLANT CUT POLLUTION BY CLOSING SOME OPERATIONS SAYS IT WILL USE THE CREDIT INTERNALLY OR LET IT EXPIRE WE DON'T WANT TO TAKE ANY ACTIONS THAT MIGHT MAKE IT SEEM THAT WE'RE NOT INTERESTED IN POLLUTION REDUCTION SAYS PLANT ENVIRONMENTAL SUPERVISOR JOHN CAUDILL MOREOVER MANY OF THE STATE'S LARGER POLLUTERS SUCH AS THE REFINERIES THAT LINE THE GULF COAST MAY CHOOSE NOT TO DEPOSIT ANY CREDITS THEY EARN BUT RATHER TO STOCKPILE CREDITS AS PROTECTION AGAINST STRICT POLLUTION REGULATIONS CONSIDER THE DOOMSDAY SCENARIO WHAT IF THEY WANT TO DO SOMETHING THAT WOULD INCREASE EMISSIONS AND CAN'T BUY CREDITS FROM ANYONE ASKS CALVIN COBB WHO HEADS WRIGHT KILLEN & CO A HOUSTONBASED REFINERY CONSULTANT HE ADDS THAT HE THINKS THEY'LL BE RELUCTANT TO SELL CREDITS SOME COMPANIES THAT AREN'T LIKELY TO NEED CREDITS FOR THEMSELVES WELCOME THE OPPORTUNITY TO DEPOSIT THEM IN THE BANK NUTONE INC SPENT 500000 SWITCHING FROM WET PAINT TO POWDER PAINT AT ITS COPPELL MANUFACTURING PLANT LAST YEAR THAT CUT EMISSIONS BY 44 TONS A YEAR SAYS PLANT OPERATIONS MANAGER BOB FITZGERALD THE INVESTMENT HAS ALREADY PAID FOR ITSELF THROUGH INCREASED EFFICIENCY AND REDUCED HAZARDOUSWASTE DISPOSAL CHARGES SO IF THE COMPANY NOW GETS SOME CASH FOR THE CREDITS THAT'S ALL GRAVY HE SAYS TO INCREASE THE APPEAL OF THE CREDITTRADING PROGRAM TNRCC OFFICIALS ARE DRAFTING REGULATIONS THAT WILL MAKE THE EXISTING BANKING RULES MORE PRECISE AND EXPAND HOW CREDITS CAN BE EARNED AND USED MR DODDS SAYS THE CREDITS ARE NOW GOOD ONLY FOR OFFSETTING NEW SOURCES OF POLLUTION BUT UNDER DRAFT REGULATIONS COMPANIES COULD BUY CREDITS INSTEAD OF NEW EQUIPMENT TO COMPLY WITH FEDERAL RULES MANDATING REDUCED NITROGENOXIDE EMISSIONS BY 1995 OCCIDENTAL PETROLEUM'S BAYPORT PLANT 72 TONS A YEAR OF VOLATILE ORGANIC COMPOUNDS OR VOCS IT WANTS TO SELL THE CREDITS REEF INDUSTRIES' MANUFACTURING PLANT 234 TONS A YEAR OF VOCS IT WANTS TO SELL DUPONT'S LA PORTE PLANT NINE TONS A YEAR OF VOCS IT PLANS TO KEEP CREDITS OR LET THEM EXPIRE MITCHELL ENERGY SEVEN TONS A YEAR OF VOCS AND 25 TONS A YEAR OF NITROGEN OXIDES IT DOESN'T KNOW YET IF IT WILL SELL THE CREDITS OR USE THEM INTERNALLY ARCO OIL & GAS'S SILSBY PLANT 486 TONS OF NITROGEN OXIDES IT PROBABLY WILL KEEP THE CREDITS FOR OWN USE OCCIDENTAL PETROLEUM'S ORANGE PLANT ABOUT 300 TONS A YEAR OF VOCS AND 30 TONS A YEAR OF NITROGEN OXIDES IT DOESN'T KNOW YET IF IT WILL SELL CREDITS OR TRANSFER THEM TO ANOTHER OCCIDENTAL PLANT INCA METAL PRODUCTS IN LEWISVILLE 95 TONS A YEAR OF VOCS COMPANY COULDN'T BE REACHED 9401050139 931124 TEXAS JOURNAL HEARD IN TEXAS PILGRIM'S PRIDE PLANS TO TAKE WING AFTER SURVIVING A ROASTING IN 1992 BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURG AH THANKSGIVING TIME TO THINK ABOUT PILGRIMS AND POULTRY BUT WE AREN'T TALKING PLYMOUTH ROCK AND TURKEYS WE'RE TALKING LONNIE BO PILGRIM AND HIS CHICKEN COMPANY PILGRIM'S PRIDE AT THIS TIME LAST YEAR PILGRIM'S PRIDE ONE OF THE COUNTRY'S LARGEST CHICKEN PRODUCERS WAS FEELING A BIT LIKE A PLUCKED BIRD IT FELL INTO FINANCIAL TROUBLE AFTER BORROWING HEAVILY TO INCREASE CAPACITY AT HOME AND EXPAND OPERATIONS IN MEXICO FISCAL 1992 RESULTS SHOWED A NET LOSS OF 297 MILLION OR 124 A SHARE THE COMPANY WENT THROUGH A MANAGEMENT SHAKEUP OMITTED STOCK DIVIDENDS FOR TWO QUARTERS AND HAD PROBLEMS RESTRUCTURING A BALANCE SHEET PLAGUED BY DEBT OBLIGATIONS ON WHICH THE COMPANY WAS IN TECHNICAL DEFAULT NOW A YEAR LATER ANALYSTS SAY THE COMPANY IS SHOWING SIGNS OF A TURNAROUND PILGRIM'S FISCAL 1993 EARNINGS RELEASED LAST WEEK SHOWED A STRONG RECOVERY FOR THE YEAR ENDED OCT 2 THE COMPANY REPORTED RECORD NET INCOME OF 21 MILLION OR 76 CENTS A SHARE AT ITS CURRENT SHARE PRICE OF ABOUT 7 PILGRIM'S STOCK TRADES AT JUST 92 TIMES EARNINGS THE COMPANY REINSTATED ITS 15CENTSASHARE QUARTERLY DIVIDEND THIS SUMMER THE DEBT PROBLEM HAS BEEN HELPED BY A 30 MILLION EQUITY INVESTMENT BY ARCHERDANIELSMIDLAND THE AGRIBUSINESS GIANT RECENTLY INCREASED ITS INTEREST TO A 199 STAKE ALL REASON TO CROW SAYS MR PILGRIM THE 65YEAROLD CHIEF EXECUTIVE OF THE COMPANY HE FOUNDED AS A FEED STORE IN 1945 WE'VE SPENT THE MONEY AND PAID THE PRICE AND WE'RE NOW IN POSITION TO TAKE ADVANTAGE OF OUR EXPANSION HE SAYS ANALYSTS ARE ALSO BECOMING MORE OPTIMISTIC THEY'RE IN A TURNAROUND NOW SAYS JOHN BIERBUSSE ANALYST AT AG EDWARDS HE HOLDS A NEUTRAL RATING ON PILGRIM'S PRIDE BUT THAT'S UP FROM A SELL RATING EARLIER THIS YEAR THE COMPANY'S PROSPECTS MAY GET A BOOST FROM THE COUNTRY'S EATING HABITS PERCAPITA CHICKEN CONSUMPTION HAS NEARLY DOUBLED TO 70 POUNDS ANNUALLY IN THE PAST TWO DECADES AT THE CURRENT 5 ANNUAL GROWTH THE COMPANY EXPECTS CONSUMPTION TO JUMP TO 95 POUNDS A YEAR BY 1998 IN MEXICO WHERE PILGRIM'S PRIDE IS THE NO 2 CHICKEN COMPANY WITH MORE THAN 11 OF THE MARKET CONSUMPTION HAS MORE THAN DOUBLED TO 35 POUNDS A YEAR SINCE 1977 AND IS GROWING AT A 6 TO 10 CLIP CHICKEN HOWEVER IS A HIGHVOLUME LOWMARGIN BUSINESS CHICKEN PRODUCERS ARE AT THE MERCY OF THE COMMODITIES MARKET WHERE BROILER PRICE SWINGS WREAK SO MUCH HAVOC ON THE BOTTOM LINE THAT ESTIMATING EARNINGS FOR THESE COMPANIES IS LIKE GUESSING AT THE WEATHER MR BIERBUSSE SAYS A ONECENT CHANGE IN THE COST OF CHICKENS OR IN THEIR SELLING PRICE AT THE SUPERMARKET TRANSLATES INTO A 121 MILLION DIFFERENCE ON PILGRIM'S BOTTOM LINE BUT PILGRIM'S PRIDE IS BEGINNING TO POSITION ITS PRODUCT MORE AS A CONVENIENCE FOOD WHICH IS A MORE PROFITABLE CHICKEN MARKET SAYS MR BIERBUSSE ANALYSTS SAY THE MOVE SHOULD MAKE THE COMPANY LESS SUSCEPTIBLE TO COMMODITY PRICE SWINGS MR BIERBUSSE POINTS OUT THAT CONSUMERS TODAY AREN'T BUYING WHOLE CHICKENS AT THEIR LOCAL SUPERMARKET INSTEAD THEY'RE BUYING ROASTED CHICKEN AT THE DELI COUNTER OR MARINATED AND DEBONED PIECES IN THE MEAT DEPARTMENT ALL OF WHICH COMMAND HIGHER PRICES THAN WHOLE BIRDS TO THAT END PILGRIM'S PRIDE HAS SHIFTED ITS FOCUS TOWARD FURTHERPROCESSED OR VALUEADDED CHICKEN FURTHERPROCESSED CHICKEN PRODUCTS ACCOUNT FOR MORE THAN A QUARTER OF THE COMPANY'S SALES UP FROM LESS THAN 2 THREE DECADES AGO BY 1995 THE COMPANY PROJECTS THE SHARE SHOULD JUMP TO MORE THAN ONETHIRD PILGRIM'S PRIDE NOW HAS THE SECONDLARGEST LINE OF CHICKEN PRODUCTS BEHIND GIANT TYSON FOODS WITH 400 VARIATIONS WE'VE GOT CHICKEN ANY WAY YOU WANT IT SAYS MR PILGRIM WHOSE COMPANY IS THE LARGEST EMPLOYER IN THIS NORTHEAST TEXAS TOWN OF JUST 4000 PILGRIM'S PRIDE HAS ALSO STEPPED UP ITS SALES TO THE FOODSERVICE INDUSTRY AS FASTFOOD POULTRY HAS BECOME INCREASINGLY POPULAR IT SUPPLIES A KENTUCKY FRIED CHICKEN FRANCHISE ON THE WEST COAST AND DALLASAREA BOSTON ROTISSERIE CHICKEN OUTLETS IT'S ALSO A LEADING PROVIDER OF CHICKEN TO WENDY'S AND OTHER FASTFOOD CHAINS ITS SUPERMARKET PACKAGES OF FRESH CHICKEN ARE SOLD PRIMARILY IN THE SOUTHWEST THOUGH IT IS A KEY SUPPLIER TO THE WEST COAST DIVISION OF ALBERTSON'S ITS FROZEN CHICKEN PRODUCTS ARE SOLD NATIONALLY UNDER THE PILGRIM'S PRIDE BANNER PILGRIM'S PRIDE ALSO IS IN MOST MAJOR SUPERMARKETS IN MEXICO CITY MEANTIME THE COMPANY IS WORKING TO GET ITS DEBT UNDER CONTROL FROM 1990 TO 1992 PILGRIM'S PRIDE SPENT 85 MILLION IN MEXICO AND 38 MILLION AT HOME TO INCREASE CAPACITY THE RESULT THOUGH CAPACITY MORE THAN TRIPLED THE HIGHLY LEVERAGED COMPANY FOUND ITSELF UNABLE TO MEET OBLIGATIONS TO SECURED LENDERS EARLIER THIS YEAR THE COMPANY ISSUED 100 MILLION OF SENIOR SUBORDINATED DEBT AND NEGOTIATED A NEW CREDIT LINE WHICH HELPED CLEAN UP ITS BALANCE SHEET THE DEBT ISSUE'S SUCCESS SHOWS INVESTORS THINK THIS COMPANY HAS A SHOT SAYS ROBERT MCMULLAN A VICE PRESIDENT AT DONALDSON LUFKIN & JENRETTE THOUGH THE COMPANY HAS A DEBT LOAD OF 14 TIMES STOCKHOLDER'S EQUITY PILGRIM'S PRIDE MANAGED TO SHRINK ITS DEBT 65 MILLION TO 185 MILLION IN THE PAST 12 MONTHS THROUGH EARNINGS AND CASH FLOW SAYS MONTY K HENDERSON THE COMPANY'S PRESIDENT AND CHIEF OPERATING OFFICER PILGRIM'S PRIDE SHOULD BE ABLE TO TRIM ITS DEBT BY ABOUT 30 MILLION A YEAR BUSINESS FIFTHLARGEST PRODUCER OF CHICKEN PRODUCTS IN THE US SECONDLARGEST IN MEXICO 112 MILLION OR 41 CENTS A SHARE SOMETIMES THE STOCK MARKET DEFIES EXPECTATIONS ABOUT HOW IT WILL REACT TO EARNINGS SURPRISES MEN'S WEARHOUSE HOUSTON REPORTED PERSHARE EARNINGS FOR THE THIRD QUARTER ENDED OCT 31 OF 13 CENTS NEARLY DOUBLE THE YEAREARLIER LEVEL AND TWO CENTS HIGHER THAN ANALYSTS HAD ESTIMATED BUT THE CLOTHIER'S STOCK FELL 17 TO 27 ON THE OTHER HAND SHARES OF AMBER'S STORES A DALLASBASED ARTSANDCRAFTS RETAILER JUMPED MORE THAN 10 TO 525 DESPITE A DROP IN PERSHARE EARNINGS TO ONE CENT FOR THE THIRD QUARTER ENDED OCT 31 FROM 14 CENTS A YEAR EARLIER ANALYSTS HAD EXPECTED TWO CENTS A SHARE VAALCO ENERGY OF HOUSTON WAS THE BIGGEST GAINER LAST WEEK CLIMBING 15 TO 675 THE DOW JONES NEWS SERVICE REPORTED THAT THE OILPRODUCTION COMPANY EXPECTS A FOURTHQUARTER PROFIT LAST YEAR IT HAD A NET LOSS OF 215000 OR THREE CENTS A SHARE VAALCO OFFICIALS ATTRIBUTE THE TURNAROUND PARTLY TO LOWER INTEREST COSTS TEXAS UTILITIES WAS ONE OF THE MOST ACTIVE STOCKS FOR THE WEEK BUT ITS SHARE PRICE ENDED UNCHANGED AT 43125 BLAME IT ON TWO CONTRARY REPORTS EARLY IN THE WEEK A KIDDER PEABODY ANALYST DOWNGRADED THE DALLAS UTILITY CONCERN TO NEUTRAL FROM OUTPERFORM BECAUSE OF CONCERN OVER A RATE CASE INVOLVING ITS COMANCHE PEAK UNIT 2 NUCLEAR PLANT TWO DAYS LATER HOWEVER FITCH INVESTORS SERVICE NEW YORK IN RATING BONDS ISSUED BY A UNIT NOTED THAT TWO RECENT REGULATORY ACTIONS WILL IMPROVE CASH FLOW 9401050125 931124 TEXAS JOURNAL NEXT HE'LL SEEK FUNDING FOR A BIG ATOM SMASHER BY ROBERT JOHNSON A TEXAS PLANT PHYSIOLOGIST WHOSE PRICKLYPEAR RESEARCH GRANT PRESIDENT BUSH ONCE DERIDED AS PORKBARREL SPENDING WILL SOON UNVEIL THE FRUITS OF HIS LATEST WORK A MACHINE TO HARVEST TREES FROM TEXAS FORESTS PETER FELKER'S MODIFIED TRACTOR WITH HUGE STEEL JAWS WILL COME IN HANDY AMID THE MESQUITE OF SOUTH TEXAS AT LEAST DR FELKER HOPES SO AFTER SPENDING 300000 IN FEDERAL GRANT MONEY ON THE PROJECT AT TEXAS A&I UNIVERSITY IN KINGSVILLE MESQUITE FETCHES UP TO 2000 A TON BUT IT'S HARD TO HARVEST DR FELKER'S CHOMPER HAS A HEAVY STEEL BRACE LIKE A BATTERING RAM TO KNOCK THE TREES OVER THE JAWS THEN PULL THE WOOD INTO ITS POWERFUL BLADES WHICH CUT THE TREES DOWN TO SIZE BY THE WAY DR FELKER STILL GETS FEDERAL MONEY TO DEVELOP MORE BOUNTIFUL VARIETIES OF PRICKLY PEARS IT'S NOT THE NOVELTY THE EASTERN ESTABLISHMENT THINKS HE SAYS IT CAN BE A BASIC NUTRITIONAL SOURCE 9401050124 931124 TEXAS JOURNAL AND WE THOUGHT SHE WAS REFERRING TO TURKEY PARTS BY ANDREA GERLIN DALLAS CUSTOMERS CALLING THE TURKEY HOT LINE AT SONNY BRYAN'S SMOKEHOUSES HAVE BEEN GETTING SOMETHING HOTTER THAN THEY EXPECTED THE RESTAURANT CHAIN A DALLAS INSTITUTION IS SELLING SMOKED TURKEYS FOR THE HOLIDAYS THROUGH AN 800 NUMBER SOMETHING IT HAD SUCCESS WITH IN 1991 BUT PUT ON HOLD LAST YEAR BECAUSE IT WAS IN THE MIDDLE OF A BIG EXPANSION NOW THE BIRDS ARE BACK AND THEY ARE AGAIN A HIT AT LEAST 40 CUSTOMERS WHO HAVE RECEIVED TURKEYS THIS FALL HAVE CALLED THE NUMBER ON THE DELIVERY BOX TO ORDER MORE AFTER THE 1991 HOLIDAYS HOWEVER THE COMPANY'S OLD 800 NUMBER THE ONE ON THE BOX WAS REASSIGNED TO A PHONE SEX LINE INSTEAD OF A TUMMYFUL CALLERS GET AN EARFUL A KITTENISH VOICE INSTRUCTS THOSE WHO WANT MORE TITILLATION TO DIAL A 900 NUMBER AND HAVE THEIR CREDIT CARDS READY ANGRY CUSTOMERS REPORTED THE PROBLEM TO SONNY BRYAN'S IT WAS THE WILDEST THING EXECUTIVE VICE PRESIDENT TIM RUYS SAYS OF THE CALLS THAT POURED IN TO THE RESTAURANT ONE CALLER HE SAYS DESCRIBED THE PHONE SEX MESSAGE AS HOT AND NASTY THE RESTAURANT HAS SINCE ORDERED NEW BOXES UNTIL THEY ARRIVE NOTICES WITH THE NEW NUMBER ARE BEING SLIPPED INSIDE THE OLD BOXES BUT SOME CUSTOMERS MIGHT STILL HAVE A SHOCK IN STORE FOR THEM THE RESTAURANT SAYS IT HAS ALREADY SHIPPED 200 BOXES WITH ONLY THE OLD NUMBER AND NO WE WON'T GIVE THE NUMBER 9401050031 931124 TEXAS JOURNAL WINNERS & LOSERS D/FW AIRPORT THE US COURT OF APPEALS QUASHED NEIGHBORING CITIES' EFFORTS TO STOP CONSTRUCTION OF TWO NEW RUNWAYS ROBERT NOURSE BOMBAY CO'S CHIEF EXECUTIVE WAS NAMED 1993 ENTREPRENEUR OF THE YEAR BY ERNST & YOUNG MERRILL LYNCH AND INC MAGAZINE FREQUENT FLIERS TRAVELERS ON AMERICAN AIRLINES GOT AN EARLY REPRIEVE FROM THE FLIGHT ATTENDANTS' STRIKE THAT HAD PARALYZED THE AIRLINE AFTER PRESIDENT CLINTON INSERTED HIMSELF INTO THE NEGOTIATIONS FRANK CIHAK THE FORMER VICE CHAIRMAN OF FAILED FIRST CITY BANCORP WAS CONVICTED OF 32 CRIMINAL COUNTS INCLUDING FRAUD AND MONEY LAUNDERING MINYARD THE DALLAS GROCERY CHAIN REFUSED TO SELL THE LATEST ISSUE OF DISCOVER MAGAZINE BECAUSE THE COVER FEATURES NAKED HUMANOIDS AGGIES ELEVEN TEXAS A&M CHEMISTRY PROFESSORS DEMANDED THE RESIGNATION OF COLLEAGUE JOHN BOCKRIS FOR ACCEPTING 200000 TO INVESTIGATE WHETHER MERCURY COULD BE TURNED INTO GOLD SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR WSJ DEC 8 1993 9311240035 9401030052 YY93 MM12 YY94 MM01 9401040098 931221 FED NEEDS AN ANGELL BY LAWRENCE KUDLOW PRESIDENT CLINTON'S 1994 MONETARY STRATEGY IS NOW CLEAR SHORTTERM INTEREST RATES ARE TO REMAIN LOW AND THE FED IS NOT TO TIGHTEN THE WHITE HOUSE IS ALSO MAKING EFFECTIVE USE OF ITS TREASURY DEPARTMENT PROPOSAL TO BRING UNDER ITS WING A CONSOLIDATED RESTRUCTURING OF THE BANK SUPERVISORY AND REGULATORY AGENCIES INCLUDING THE FEDERAL RESERVE THE PRESIDENT CLEARLY EXPRESSED SUPPORT FOR THE DEMOCRATIC LEADERSHIP VIEW THAT MONETARY POLICY SHOULD CONCERN ITSELF LESS WITH INFLATION AND MORE WITH ECONOMIC GROWTH TAKING ACCOUNT OF CHAIRMAN ALAN GREENSPAN'S SPIRITED DEFENSE OF FED SUPERVISORY PRIMACY ON THIS PAGE AS WELL AS DEPARTING FED GOVERNOR WAYNE ANGELL'S VIEW THAT THE DOLLAR IS TOO LOW AND GOLD PRICES ARE TOO HIGH WE SEE CLEARLY THAT 1993'S FEDWHITE HOUSE ENTENTE CORDIALE IS NOW OVER FED VICE CHAIRMAN DAVID MULLINS FINALLY ENDED A PUBLIC ARGUMENT WITH HIMSELF INDICATING NO NEED FOR AN IMMEDIATE INCREASE IN THE FED FUNDS RATE IT WOULD APPEAR THAT THE CENTRAL BANK HAS CAPITULATED TO THE WHITE HOUSE AT LEAST FOR NOW THIS SUGGESTS THERE WILL BE NO PREEMPTIVE STRIKE BY THE MONETARY AGENCY TO HEAD OFF RISING INFLATION EXPECTATIONS THAT THE WHITE HOUSE HAS CONSTRUCTED AN INTRICATE WEB TO ENSNARE THE FED IS NO PARTICULAR SURPRISE FROM THE BEGINNING THIS ADMINISTRATION HAS ARTICULATED A FISCALMONETARY MIX OF HIGH TAX RATES AND LOW INTEREST RATES ESSENTIALLY ARGUING THAT THE CONTRACTIONARY EFFECTS OF RISING TAX BURDENS CAN BE OFFSET BY THE EXPANSIONIST EFFORTS OF STEPPED UP FED DOLLAR CREATION THEREBY SUBSTITUTING MORE MONEY TO REPLACE FEWER GOODS PULLED TOGETHER BY FORMER WALL STREETER ROBERT RUBIN THIS POLICY APPROACH IS NOW PAYING OFF WITH THE EMERGENCE OF A VERY STRONG BOOMLET LED BY CONSUMER DEMAND GOLD HOWEVER IS ONCE AGAIN MARCHING TOWARD 400 AN OUNCE A SIGNAL OF HIGHER FUTURE INFLATION NEVERTHELESS CONSUMER CONFIDENCE AND THE PRESIDENT'S POLL RATINGS ARE SUBSTANTIALLY IMPROVING ON THE STRENGTH OF THE SPENDING BOOM THE FINE ART OF POLITICS IS ALWAYS TO FOCUS ON THE SHORT RUN AND CLINTONITES ARE SUCCESSFULLY AND DETERMINEDLY REFINING THIS APPROACH IN A WAY NOT SEEN SINCE RONALD REAGAN'S FIRST TEAM THEY PUT TO SHAME THE AMATEURISH BUSHIES WHO PRECEDED THEM THE FEDERAL RESERVE MEANWHILE HAS DONE ITSELF VERY LITTLE GOOD MR MULLINS HIMSELF A BUSH APPOINTEE HAS BEEN ON ALL SIDES OF THE TIGHTENING DEBATE HE INITIALLY NOTED THAT EARLY WARNING INFLATION SIGNALS SUCH AS GOLD COMMODITY FUTURES AND THE WEAK DOLLAR EXCHANGE RATE SUGGESTED THE NEED FOR HARDER MONEY THEN COMPLETELY SWITCHING DIRECTION MR MULLINS FELL BACK TO DEFENDING THE ADMITTEDLY LOW 27 NOVEMBER INFLATION REPORT THE TRAP HOWEVER IS THAT TODAY'S INFLATION IS PRINCIPALLY DETERMINED BY MONETARY ACTIONS OF AT LEAST A YEAR AGO IN OTHER WORDS USING CURRENT CPI REPORTS AMOUNTS TO DRIVING WHILE LOOKING IN THE REARVIEW MIRROR MORE GENERALLY IT IS INCREASINGLY CLEAR THAT THE FED IS DRIFTING IN SEARCH OF A CLEAR COMPASS AND A PUBLICLY ANNOUNCED TARGET EARLIER THIS YEAR THE AUTHORITIES FINALLY ABANDONED THE USELESS M2 APPROACH RECOGNIZING THAT THE INCOME VELOCITY LINK BETWEEN MONEY AND GROSS DOMESTIC PRODUCT HAS BROKEN DOWN MANY SOUND MONEY ECONOMISTS EXPECTED THE FED TO COME FORWARD AND FORMALLY DECLARE ITS ADHERENCE TO OPENMARKET PRICE LEVELS ESPECIALLY GOLD AND COMMODITY INDEXES AND INCLUDING THE DOLLAR EXCHANGE RATE AND THE TREASURY YIELD CURVE THESE PRICE SIGNALS ARE THE MOST EFFICIENT MEANS TO DETERMINE WHETHER MONEY SUPPLY AND DEMAND ARE BALANCED HOWEVER THE FED HAS COME FORWARD WITH NO SUCH ANNOUNCEMENT INSTEAD IT APPEARS THAT ITS POLICY MAKERS ARE LOOKING AT EVERYTHING UNDER THE SUN VIRTUALLY RENDERING THEIR DECISION PROCESS NULL AND VOID TRUE ENOUGH RISING ECONOMIC GROWTH IS NO REASON TO TIGHTEN POLICY AS ILLUSTRATED BY THE ECONOMIC HISTORY OF THE 1970S AND 1980S UNEMPLOYMENT AND INFLATION ARE LIKELY TO RISE AND FALL TOGETHER OVER LENGTHY PERIODS THERE IS NO TRADEOFF HENCE THE PHILLIPS CURVE WHICH POLICY MAKERS USE TO ARGUE THERE WE MUST CHOOSE BETWEEN INFLATION AND UNEMPLOYMENT IS DISCREDITED IN THAT RESPECT MR CLINTON IS RIGHT THE FED SHOULD NOT CHOKE OFF GROWTH IN ANOTHER AREA THOUGH HE IS REGRETTABLY WRONG HE APPEARS TO ADHERE TO THE KEYNESIAN ISLM CURVE WHICH ASSERTS THAT MORE MONEY INJECTED INTO THE ECONOMY WILL AUTOMATICALLY REDUCE OR HOLD DOWN ALL INTEREST RATES THUS STIMULATING INVESTMENT DEMAND AND GROWTH WHAT SHOULD HAVE BEEN LEARNED FROM THE 1970S EXPERIENCE IS THAT TOO MUCH MONEY CREATION PARADOXICALLY HOLDS DOWN SHORT RATES BUT STIMULATES RISING LONGTERM RATES IN RESPONSE TO INFLATION FEARS THIS CONCERN IS PARTICULARLY SALIENT IN THE CURRENT POLICY SETTING OF LOW SHORTTERM INTEREST RATES AND RISING TAX RATES JAN 1 WILL BRING THE BIGGEST INCOME TAX HIKE IN POSTWORLD WAR II HISTORY BY MOVING THE TOP RATE TO 43 FROM 31 INCLUDING THE NEW 36 BRACKET THE 10 SURCHARGE BRACKET AND THE ELIMINATION OF THE 29 MEDICARE TAX CAP THE AFTERTAX YIELD ON THE MARGINAL DOLLAR EARNED WILL DROP TO 57 CENTS FROM 69 CENTS THIS IS A 17 INCENTIVE ROLLBACK ON THOSE WITH THE HIGHEST PROPENSITY TO SAVE INVEST AND TAKE RISKS NOT ONLY WILL THIS TAX BRAKE BLUNT ECONOMIC GROWTH BUT IT WILL ALSO MAKE THE PRIVATE SECTOR LESS EFFICIENT AND PRODUCTIVE UNLESS THE FED THROTTLES BACK ITS RATE OF NEW DOLLAR CREATION THE USEFULNESS OF MONEY WILL DECLINE AND THE INFLATION RATE WILL RISE THOUGH THE WHITE HOUSE DENIES IT HIGHER INCOME TAX RATES ESPECIALLY HIGHER TOP INCOME TAX RATES ARE INFLATIONARY TO REPLACE WAYNE ANGELL THE WHITE HOUSE HAS APPARENTLY CHOSEN ALICE RIVLIN DEPUTY DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET SHE IS LIKELY TO MAKE THE ISLM AND PHILLIPS CURVES PROMINENT FED POLICY TOOLS ONCE AGAIN MR ANGELL'S TERM EXPIRES JAN 31 AS A REAGAN APPOINTEE HE MORE THAN ANYONE ELSE WAS RESPONSIBLE FOR THE INTELLECTUAL REVIVAL OF THE SOUND MONEY BRETTON WOODS APPROACH TO MONETARY POLICY USING GOLD AND COMMODITY PRICES AS THE BEST YARDSTICK OF MONETARY VALUE AND DOMESTIC PRICE STABILITY AS THE CONSCIENCE OF THE FED MR ANGELL WAS A CRUCIAL PARTICIPANT IN THE SUCCESSFUL STRATEGY THAT BROUGHT INFLATION AND INTEREST RATES TO 30YEAR LOWS MR ANGELL ALSO UNDERSTANDS WELL THAT THE UNINDEXED CAPITALGAINS TAX RATE IS THE KEY RATEOFRETURN BENCHMARK FOR THE RISKTAKERS AND ENTREPRENEURS WHO ARE SO VITAL TO JOSEPH SCHUMPETER'S DYNAMIC GROWTH MODEL THE MODEL EXPLAINS THE SUCCESS OF DEMOCRATIC CAPITALISM INCLUDING THE 20 MILLION NEW JOBS CREATED DURING THE ECONOMIC BOOM OF THE 1980S BUT MR ANGELL KNOWS THAT THE CAPITALGAINS TAX RATE INTERACTS WITH THE INFLATION RATE AT 5 INFLATION FOR EXAMPLE THE EFFECTIVE TAX ON REAL CAPITAL STIFLES THE REWARD TO INNOVATION BY RISING TO 75 BUT AT 25 INFLATION THE ANIMAL SPIRITS ARE REVIVED BY LOWERING THE EFFECTIVE CAPITALGAINS TAX TO 51 OF COURSE SHOULD FEDERAL POLICY EVER FIND ITS WAY TO A FULL INFLATION INDEXING OF CAP GAINS THEN THE REAL TAX RATE WOULD DROP TO THE 28 STATUTORY RATE CAUSING AN EXPLOSION OF WEALTH CREATION AND JOBS MR ANGELL ALSO KNOWS THAT THE MOMENT INFLATION BEGINS TO RISE THE PROMISING CURRENT IMPROVEMENT IN NEW BUSINESS STARTUPS AND OTHER FORMS OF ENTREPRENEURIAL GROWTH WILL BE BLUNTED HENCE THE DISTURBING RISE IN GOLD BACKED BY A 13 ANNUAL RISE IN FEDERAL RESERVE CREDIT BRACKETED BY AN UNDERVALUED DOLLAR EXCHANGE RATE AND AN UNNECESSARILY LOW REAL FED FUNDS RATE IS OF MAJOR CONCERN IN ALL LIKELIHOOD THE DEPARTING BOARD MEMBER WILL STRONGLY DISSENT AT HIS LAST FOMC MEETING SCHEDULED FOR TODAY THAT SAID IT IS EQUALLY LIKELY THAT THE FED WILL LISTEN MORE ATTENTIVELY TO THE WHITE HOUSE THAN ITS OWN CONSCIENCE MUCH PREFERABLE TO A TIGHTENING OF MONEY WOULD BE A REVERSAL OF HIGH TAXES IF THERE IS SUCH A THING AS A MAGIC WAND IT SHOULD BE WAVED IMMEDIATELY TO ROLL BACK THE JAN 1 INCOME TAX HIKE THIS ECONOMYWIDE RESTORATION OF INCENTIVES WOULD UNDOUBTEDLY RAISE THE DOLLAR EXCHANGE RATE AND LOWER THE GOLD PRICE HIGHER SAVING AND INVESTMENT RETURNS WOULD ATTRACT WORLD CAPITAL WHILE ENHANCING THE USEFULNESS AND DEMAND FOR MONEY INFLATION'S THREAT WOULD EVAPORATE GROWTH PROSPECTS WOULD EXPAND BUT GOLD CONTINUES TO MARCH HIGHER AS THE JAN 1 TAX DATE MOVES CLOSER THE CLINTONRUBIN VIEW APPEARS DESTINED TO TRIUMPH OVER THE ANGELL VIEW TOO BAD GOLD ALWAYS TELLS THE INFLATION STORY WASHINGTON SHOULD PAY MORE ATTENTION TO IT AND MR ANGELL WILL BE HEARD FROM AGAIN MR KUDLOW IS CHIEF ECONOMIST AT BEAR STEARNS IN NEW YORK SEE RELATED LETTER LETTERS TO THE EDITOR IT'S NOT SO SIMPLE WSJ JAN 4 1994 9312210114 YY94 MM01 9401040028 931221 COLLEGE MORE THAN SERVING BY ARTHUR LEVINE THE MERITS OF REDUCING THE COLLEGE DEGREE TO THREE YEARS FROM FOUR ARE BEING BROADLY DISCUSSED IN ACADEMIC CIRCLES THE DEBATE WAS STARTED BY FRED STARR THE PRESIDENT OF OBERLIN AND IS BEING FUELED BY A STANFORD UNIVERSITY CURRICULUM REEXAMINATION THAT CONSIDERS WHETHER THE TIME IT TAKES TO EARN A BACCALAUREATE DEGREE SHOULD BE REDUCED TO THREE YEARS THE IDEA IS APPEALING ON THE SURFACE AT A TIME WHEN COLLEGE TUITIONS ARE SOARING CUTTING A YEAR FROM UNDERGRADUATE STUDY WOULD APPEAR TO REDUCE COSTS 25 BUT LIKE MANY OTHER ACADEMIC EXERCISES IT IS OUT OF TOUCH WITH REALITY THE IDEA IS NOT NEW HARVARD HAD A THREEYEAR DEGREE IN THE 1640S ITS SECOND PRESIDENT GOT INTO A BATTLE ROYAL WITH HIS BOARD OF TRUSTEES WHEN HE TURNED IT INTO A FOURYEAR DEGREE PERIODICALLY IN THE YEARS SINCE BOTH THE DEBATE AND NEW THREEYEAR DEGREE HAVE REAPPEARED MOST RECENTLY IN THE EARLY 1970S THE CARNEGIE CORPORATION SUPPORTED THE CREATION OF THREEYEAR PROGRAMS AT COLLEGES AND UNIVERSITIES ACROSS THE COUNTRY NEARLY ALL OF THOSE PROGRAMS ARE NOW GONE THERE WAS TOO LITTLE STUDENT INTEREST TO JUSTIFY THEIR CONTINUATION IF ANYTHING THREEYEAR DEGREE PROGRAMS PROBABLY WOULD BE EVEN LESS SUCCESSFUL NOW THAN THEY WERE THEN THERE ARE SEVERAL REASONS FIRST STUDENT ACADEMIC SKILLS HAVE DECLINED SINCE THE LATE 1960S MORE THAN A THIRD OF UNDERGRADUATES REPORT THAT THEY ARE IN NEED OF REMEDIAL COURSES IN SHORT STUDENTS APPEAR TO NEED MORE EDUCATION TODAY NOT LESS SECOND THE AVERAGE TIME REQUIRED TO EARN A COLLEGE DEGREE IS ACTUALLY INCREASING A GROWING PROPORTION OF STUDENTS ARE TAKING FIVE YEARS OF CLASSES PARTICULARLY AT LARGE PUBLIC UNIVERSITIES WHICH THE MAJORITY OF STUDENTS NOW ATTEND THIRD A MAJORITY OF COLLEGE STUDENTS WORK TODAY WHILE ATTENDING COLLEGE MOST WORK 20 HOURS OR MORE A WEEK TO BE ABLE TO PAY THEIR TUITION THE PROMISE OF NOT PAYING A FOURTH YEAR OF TUITION WOULD NOT ELIMINATE THEIR NEED TO WORK AS A CONSEQUENCE THE NOTION OF EXTENDING THE COLLEGE YEAR OR EVEN THE COLLEGE DAY IS IMPRACTICAL FOURTH ELIMINATING THE FINAL YEAR OF COLLEGE WOULD BE A FINANCIAL DISASTER FOR MOST INSTITUTIONS WHICH ARE HEAVILY DEPENDENT ON TUITION OR ENROLLMENTS TO FUND THEIR OPERATIONS SCHOOLS WOULD LOSE A QUARTER OF THEIR STUDENT BODIES OUTSIDE THE WEST AND THE SOUTH THE DEMOGRAPHICS OF THE NATION ARE SUCH THAT THE LOSS OF STUDENTS SIMPLY COULD NOT BE MADE UP COLLEGES MIGHT HAVE TO RAISE TUITION SUBSTANTIALLY TO COMPENSATE HOWEVER THERE IS A MUCH LARGER PROBLEM FOR THE THREEYEAR DEGREE THAN ANY MENTIONED SO FAR IT DOES NOT MAKE EDUCATIONAL SENSE THE FOURYEAR DEGREE IS ENTIRELY ARBITRARY AND SO IS THE THREEYEAR DEGREE DEGREE TIME MEASURES HOW LONG STUDENTS SIT IN CLASS IT IS NOT A MEASURE OF HOW MUCH THEY LEARN IMAGINE TAKING YOUR CLOTHES TO A LAUNDRY AND HAVING THE PROPRIETOR ASK HOW LONG DO YOU WANT ME TO WASH THEM THREE HOURS OR FOUR THE QUESTION WOULD BE ABSURD WE DON'T CARE HOW LONG THE CLOTHES ARE WASHED WE WANT THEM CLEAN WE WANT THE LAUNDERER TO FOCUS ON THE OUTCOME OF HIS WASHING NOT THE PROCESS EDUCATION SHOULD OPERATE SIMILARLY COLLEGES AND UNIVERSITIES SHOULD DEFINE THE SKILLS AND KNOWLEDGE A STUDENT NEEDS TO POSSESS IN ORDER TO EARN A BACCALAUREATE DEGREE RATHER THAN THE NUMBER OF HOURS OF LECTURES AND CLASSES A STUDENT SHOULD ATTEND TO EARN A DEGREE STUDENTS ENROLLED IN COLLEGE NOW ARE MORE HETEROGENEOUS THAN EVER BEFORE MORE THAN HALF OF ALL HIGHSCHOOL GRADUATES ARE GOING ON TO SOME FORM OF POSTSECONDARY EDUCATION AND THE FASTESTGROWING GROUP ATTENDING COLLEGE IS OLDER ADULTS AS A RESULT THERE IS A GREATER RANGE OF KNOWLEDGE SKILLS AND EXPERIENCE AMONG COLLEGE STUDENTS THAN IN THE PAST MANY WILL REQUIRE MORE THAN FOUR YEARS OF INSTRUCTION TO EARN A DEGREE OTHERS WILL COME TO COLLEGE WITH SUCH RICH BACKGROUNDS THAT THEY WILL BE ABLE TO COMPLETE A DEGREE IN LESS THAN FOUR YEARS AND PERHAPS LESS THAN THREE FOR THESE REASONS IT IS A MISTAKE FOR COLLEGES TO TIE IN THEIR DEGREES TO TIME SERVED MR LEVINE IS CHAIRMAN OF THE INSTITUTE FOR EDUCATIONAL MANAGEMENT AT HARVARD SEE RELATED LETTER LETTERS TO THE EDITOR EDUCATION IS MORE THAN TIME SERVED' WSJ JAN 4 1994 9312210017 YY94 MM01 9401040027 931223 REVIEW & OUTLOOK EDITORIAL WHY DISCOURAGE RELIGION CHRISTMAS IS THE HOLIDAY OF JOY BUT IT IS HARD NOT TO NOTICE THAT THIS YEAR'S CELEBRATION WILL BE BITTERSWEET AND EVEN TRAGIC FOR MANY AMERICANS THERE IS THE FAMILY OF THE RECENTLY MURDERED POLLY KLAAS AND THE FAMILIES OF THE SIX COMMUTERS MURDERED ON THE LONG ISLAND RAILROAD BESIDES THOSE WELL PUBLICIZED EVENTS SEVERAL OTHER RANDOMLY MULTIPLE MURDERS ERUPTED IN JUST THE PAST MONTH THE DISGRUNTLED UNEMPLOYED MAN IN OXNARD CALIFORNIA AND THE KILLER OF FOUR YOUNG WORKERS AT A SUBURBAN DENVER PIZZA PARLOR THE LIST LENGTHENS NATURAL DISASTERS OR ACCIDENTS HAVE SEEMED UNUSUALLY DEVASTATING THE MIDWESTERN FLOOD THE AMTRAK TRAIN WRECK IN ALABAMA THE BURDEN ON THE SURVIVING FAMILIES IS IMMENSE FOR MOST OF US IT IS SIMPLY UNKNOWABLE OUR PURPOSE IS NOT MERELY TO NOTE THE INEVITABLE IRONIES OF THIS OR REALLY ANY CHRISTMAS SEASON OUR SUBJECT IS WHAT USED TO BE A SOURCE OF TRADITIONAL COMFORT IN SUCH TIMES RELIGIOUS FAITH IT TOO IS UNDER STRESS FOR US ONE OF THE YEAR'S MOST TELLING STORIES WAS THAT OF THE HIGH SCHOOL STUDENTS ATTEMPTING A DAILY PRAYER OVER THE LOUDSPEAKER IN WINGFIELD MISSISSIPPI AS WITH MANY OTHER SCHOOLS THIS RELATIVELY POOR HIGH SCHOOL HAD BEEN BESET BY VIOLENCE THE INSTALLATION OF METAL DETECTORS AND NOT SURPRISINGLY IN THIS ATMOSPHERE FALLING TEST SCORES SO THE STUDENTS VOTED FOR A DAILY PRAYER THINKING THAT MAYBE THIS AFFIRMATION OF PUBLIC FAITH WOULD HELP THE PRINCIPAL WHO APPROVED THE READING OF THE VERY SHORT VERY NONDENOMINATIONAL PRAYER WAS FIRED THE SCHOOL BOARD CITED CHURCHSTATE SEPARATION ORTHODOXY THE ACLU THREATENED LITIGATION OUR THOUGHT FOR THE SEASON IS AMID ALL THE INDIVIDUAL PAIN AND TORMENT OF OUR TIMES WHY WOULD ANYONE WANT TO PREVENT PEOPLE FROM COMMITTING ACTS OF FAITH WE CAN SEE WHERE WHEN THE MATTER OF PUBLICSCHOOL PRAYER ORIGINALLY CAME UP THAT IT WOULD BE POSSIBLE FOR PEOPLE TO ENGAGE IN ABSTRACT AND LEARNED DISCUSSIONS OF THE ESTABLISHMENT CLAUSE OF THE SORT ONE MIGHT HEAR IN ARGUMENT BEFORE THE SUPREME COURT BUT IN THE YEARS SINCE AMERICAN SOCIAL LIFE HAS BECOME INCREASINGLY UNSETTLED WE SENSE THAT THIS CONDITION OF SOCIAL RUPTURE REACHED A TURNING POINT THIS YEAR A KIND OF NATIONAL EPIPHANY WITH GENERAL AGREEMENT THAT TOO MANY INNOCENT PEOPLE WERE DYING VIOLENTLY AND THAT THE DEGREE OF ILLEGITIMATE BIRTH WAS FRIGHTENING AND UNACCEPTABLE SO WE NOW HAVE A LOT OF TALK ABOUT GUN CONTROL WORKFARE AND WHATNOT AND YET PEOPLE WISHING TO COMMIT ACTS OF RELIGION REMAIN SUSPECT ESPECIALLY ACTS OF FERVID RELIGION HOW EXTRAORDINARY CLEARLY SOME OF US HAVE A REMARKABLY DEEP FAITH IN WHOLLY SECULAR SOLUTIONS EVEN IN THE FACE OF RELENTLESS SECULAR FAILURE WE HAVE ARGUED HERE BEFORE THAT RELIGION WAS FORMERLY ONE OF THE ORGANIZING STRUCTURES THAT GAVE COMMUNITY LIFE A STEADINESS WHICH IN TURN PROTECTED SOME OF OUR MOST VULNERABLE AND IMPRESSIONISTIC MEMBERS OVER TIME THOUGH THESE RIGHTLY NAMED MAINSTREAM RELIGIOUS STRUCTURES AND VALUES WERE CRITICIZED DIMINISHED AND WEAKENED THE SCOURING OF TEXTBOOKS AND ALL THAT AGAIN WHAT WE FIND NOTABLE IS THAT AN ARDENT HOSTILITY TO THE RELIGIOUS PERSISTS DESPITE SO MUCH SOCIAL MAYHEM AN EXAMPLE OF THIS AUTOMATICPILOT HOSTILITY WHICH IMPRESSED US WAS THE GENERALIZED CONTEMPT SHOWN BY REPORTERS FROM AROUND THE COUNTRY FOR THE EVANGELICALS AT THE REPUBLICAN CONVENTION IN HOUSTON THE BASIC CRITICISM WAS THAT THESE PEOPLE WOULD IMPOSE THEIR VALUES ON EVERYONE ELSE WHICH IS KIND OF LAUGHABLE WHEN YOU CONSIDER THAT OBVIOUSLY SOMEONE ELSE'S VALUES HAVE ALREADY BEEN WELL IMPOSED ON A COUNTRY COINCIDENTALLY FILLING UP WITH DERANGED GUNMEN FATHERLESS CHILDREN AND OTHER TATTERED SOULS WE READ SOMEWHERE RECENTLY THAT SOMEONE HAD CONVERTED TO VEGETARIANISM AND SOMEWHERE ELSE THAT AN EVENING AEROBIC CLASS WAS LIKE A RELIGIOUS EXPERIENCE OTHER PEOPLE ARE IN DAILY COMMUNION WITH PROZAC WE DOUBT WE'LL LIVE LONG ENOUGH THOUGH TO SEE THE DAY WHEN VEGETARIANISM OR AEROBICS OR SEROTONINUPTAKE INHIBITORS ACHIEVE EQUAL STATUS WITH THE WORLD'S GREAT RELIGIONS BUT CLEARLY A FUNDAMENTAL NEED FOR A STRONG SYSTEM OF BELIEF EXISTS FOR MOST PEOPLE IF NOT FOR OUR INTELLECTUALS AND ERSATZ RELIGIONS WILL CHEERFULLY CLOG THE VOID WE UNDERSTAND THAT THERE ARE ALL SORTS OF HISTORICAL ARGUMENTS ABOUT THE DANGERS OF RELIGIOUS IMPOSITION BUT AT THIS TIME OF YEAR AS WE LOOK OUT AT A NATION NEARLY OVERWHELMED BY SPILLED BLOOD AND DESPERATE LIVES WE CONCLUDE THAT RESISTANCE TO ACTS OF RELIGION PUBLIC OR OTHERWISE IS ENGENDERING MORE RISK THAN AMERICAN SOCIETY SHOULD BE EXPECTED TO BEAR AND WE SUSPECT THAT THE PRAYERFUL STUDENTS OF WINGFIELD HIGH A PREDOMINANTLY BLACK SCHOOL IN MISSISSIPPI SOMEDAY MAY BE WELL REMEMBERED FOR THEIR MODEST ACT OF FAITH AND WHAT'S MORE OF COURAGE SEE RELATED LETTER LETTERS TO THE EDITOR WHY INSULT PROZAC WSJ JAN 4 1994 9312230059 YY94 MM01 9401040025 931223 REVIEW & OUTLOOK EDITORIAL IN HOC ANNO DOMINI WHEN SAUL OF TARSUS SET OUT ON HIS JOURNEY TO DAMASCUS THE WHOLE OF THE KNOWN WORLD LAY IN BONDAGE THERE WAS ONE STATE AND IT WAS ROME THERE WAS ONE MASTER FOR IT ALL AND HE WAS TIBERIUS CAESAR EVERYWHERE THERE WAS CIVIL ORDER FOR THE ARM OF THE ROMAN LAW WAS LONG EVERYWHERE THERE WAS STABILITY IN GOVERNMENT AND IN SOCIETY FOR THE CENTURIONS SAW THAT IT WAS SO BUT EVERYWHERE THERE WAS SOMETHING ELSE TOO THERE WAS OPPRESSION FOR THOSE WHO WERE NOT THE FRIENDS OF TIBERIUS CAESAR THERE WAS THE TAX GATHERER TO TAKE THE GRAIN FROM THE FIELDS AND THE FLAX FROM THE SPINDLE TO FEED THE LEGIONS OR TO FILL THE HUNGRY TREASURY FROM WHICH DIVINE CAESAR GAVE LARGESS TO THE PEOPLE THERE WAS THE IMPRESSOR TO FIND RECRUITS FOR THE CIRCUSES THERE WERE EXECUTIONERS TO QUIET THOSE WHOM THE EMPEROR PROSCRIBED WHAT WAS A MAN FOR BUT TO SERVE CAESAR THERE WAS THE PERSECUTION OF MEN WHO DARED THINK DIFFERENTLY WHO HEARD STRANGE VOICES OR READ STRANGE MANUSCRIPTS THERE WAS ENSLAVEMENT OF MEN WHOSE TRIBES CAME NOT FROM ROME DISDAIN FOR THOSE WHO DID NOT HAVE THE FAMILIAR VISAGE AND MOST OF ALL THERE WAS EVERYWHERE A CONTEMPT FOR HUMAN LIFE WHAT TO THE STRONG WAS ONE MAN MORE OR LESS IN A CROWDED WORLD THEN OF A SUDDEN THERE WAS A LIGHT IN THE WORLD AND A MAN FROM GALILEE SAYING RENDER UNTO CAESAR THE THINGS WHICH ARE CAESAR'S AND UNTO GOD THE THINGS THAT ARE GOD'S AND THE VOICE FROM GALILEE WHICH WOULD DEFY CAESAR OFFERED A NEW KINGDOM IN WHICH EACH MAN COULD WALK UPRIGHT AND BOW TO NONE BUT HIS GOD INASMUCH AS YE HAVE DONE IT UNTO ONE OF THE LEAST OF THESE MY BRETHREN YE HAVE DONE IT UNTO ME AND HE SENT THIS GOSPEL OF THE KINGDOM OF MAN INTO THE UTTERMOST ENDS OF THE EARTH SO THE LIGHT CAME INTO THE WORLD AND THE MEN WHO LIVED IN DARKNESS WERE AFRAID AND THEY TRIED TO LOWER A CURTAIN SO THAT MAN WOULD STILL BELIEVE SALVATION LAY WITH THE LEADERS BUT IT CAME TO PASS FOR A WHILE IN DIVERS PLACES THAT THE TRUTH DID SET MAN FREE ALTHOUGH THE MEN OF DARKNESS WERE OFFENDED AND THEY TRIED TO PUT OUT THE LIGHT THE VOICE SAID HASTE YE WALK WHILE YOU HAVE THE LIGHT LEST DARKNESS COME UPON YOU FOR HE THAT WALKETH IN DARKNESS KNOWETH NOT WHITHER HE GOETH ALONG THE ROAD TO DAMASCUS THE LIGHT SHONE BRIGHTLY BUT AFTERWARD PAUL OF TARSUS TOO WAS SORE AFRAID HE FEARED THAT OTHER CAESARS OTHER PROPHETS MIGHT ONE DAY PERSUADE MEN THAT MAN WAS NOTHING SAVE A SERVANT UNTO THEM THAT MEN MIGHT YIELD UP THEIR BIRTHRIGHT FROM GOD FOR POTTAGE AND WALK NO MORE IN FREEDOM THEN MIGHT IT COME TO PASS THAT DARKNESS WOULD SETTLE AGAIN OVER THE LANDS AND THERE WOULD BE A BURNING OF BOOKS AND MEN WOULD THINK ONLY OF WHAT THEY SHOULD EAT AND WHAT THEY SHOULD WEAR AND WOULD GIVE HEED ONLY TO NEW CAESARS AND TO FALSE PROPHETS THEN MIGHT IT COME TO PASS THAT MEN WOULD NOT LOOK UPWARD TO SEE EVEN A WINTER'S STAR IN THE EAST AND ONCE MORE THERE WOULD BE NO LIGHT AT ALL IN THE DARKNESS AND SO PAUL THE APOSTLE OF THE SON OF MAN SPOKE TO HIS BRETHREN THE GALATIANS THE WORDS HE WOULD HAVE US REMEMBER AFTERWARD IN EACH OF THE YEARS OF HIS LORD STAND FAST THEREFORE IN THE LIBERTY WHEREWITH CHRIST HAS MADE US FREE AND BE NOT ENTANGLED AGAIN WITH THE YOKE OF BONDAGE THIS EDITORIAL WAS WRITTEN IN 1949 BY VERMONT ROYSTER NOW EDITOR EMERITUS OF THE JOURNAL AND HAS BEEN PUBLISHED ANNUALLY SINCE SEE RELATED LETTER LETTERS TO THE EDITOR CHANNUKAH PASSOVER CELEBRATE FREEDOM WSJ JAN 4 1994 9312230043 YY94 MM01 9401040011 931222 DANGER INDOCTRINATION RELIGIOUS PROFESSORS ARE THE LAST TABOO BY GEORGE M MARSDEN A FEW YEARS AGO A PROFESSOR OF RELIGION AT A PRIVATE UNIVERSITY TOLD ME THAT HE BELIEVED IT INAPPROPRIATE FOR ANYONE WHO PRACTICED A PARTICULAR RELIGION TO TEACH ABOUT IT IN HIS CLASSES TO DO SO HE THOUGHT WOULD BE TO TRANSGRESS THE STANDARDS OF SCIENTIFIC DETACHMENT NECESSARY FOR THE PROPER STUDY OF RELIGION WE MIGHT THINK OF SOME ANALOGIES PERHAPS NO FEMINIST SHOULD TEACH THE HISTORY OF WOMEN OR NO POLITICAL LIBERAL SHOULD TEACH AMERICAN POLITICAL HISTORY OR FOR THOSE WHO SEE RELIGION MAINLY AS PRACTICE MAYBE NO MUSICIAN SHOULD BE ALLOWED TO TEACH AN INSTRUMENT THAT HE HIMSELF PLAYS IT IS RELATIVELY RARE I BELIEVE TO CARRY THE NO ADVOCACY VIEW CONCERNING TEACHING RELIGION TO SUCH AN EXTREME NONETHELESS THIS EXTREME VIEW IS PLAUSIBLE BECAUSE WEAKER VERSIONS OF THE RULE ARE SO WIDESPREAD MANY CONTEMPORARY ACADEMICS INSIST THAT THE ONLY RESPECTABLE PLACE FOR RELIGION IN THE ACADEMY IS ON THE SYLLABUS AS AN OBJECT OF STUDY WHERE IT MAY BE SUBORDINATED TO WESTERN SCIENTIFIC STANDARDS OF ANALYSIS FOR THE MOST PART THE IDEA THAT ONE'S RELIGION MIGHT SHAPE ONE'S SCHOLARLY PERSPECTIVES IS SIMPLY UNKNOWN IN MAINSTREAM ACADEMIA THAT ABSENCE IS SO MUCH TAKEN FOR GRANTED THAT EVEN ACADEMICS WHO ARE THEMSELVES RELIGIOUS OFTEN THINK THAT THEY MUST KEEP QUIET ABOUT THEIR FAITH IN MUCH OF ACADEMIA EXPLICIT RELIGIOUS OUTLOOKS ARE REGARDED AS UNACCEPTABLE SOMETIMES THERE IS OUTRIGHT DISCRIMINATION I HAVE SEEN CASES IN THE FIELD OF RELIGION IN WHICH APPLICANTS FOR TEACHING POSITIONS OR FOR GRADUATE SCHOOLS HAVE BEEN DISMISSED OUT OF HAND BECAUSE THEY REVEALED THAT RELIGIOUS MOTIVES WOULD SHAPE THEIR SCHOLARSHIP WHEN I RECENTLY RAISED SUCH ISSUES IN AN ADDRESS TO THE SCHOLARS OF THE AMERICAN ACADEMY OF RELIGION ONE NEWSPAPER REPORTED A POLITICAL SCIENTIST SAYING THAT I HAD OVERSTATED THE DEGREE OF PREJUDICE TELLINGLY HOWEVER HE ADDED THAT IF A PROFESSOR PROPOSED TO STUDY SOMETHING FROM A CATHOLIC OR PROTESTANT POINT OF VIEW IT WOULD BE TREATED LIKE PROPOSING SOMETHING FROM A MARTIAN POINT OF VIEW THAT IS JUST MY POINT MY PUZZLEMENT OVER THIS STATE OF AFFAIRS GROWS OUT OF MY OWN EXPERIENCE FOR 20 YEARS I TAUGHT AT CALVIN COLLEGE IN GRAND RAPIDS MICH AS ITS NAME SUGGESTS CALVIN STANDS IN A LONG TRADITION OF PROTESTANT HIGHER LEARNING WHILE THE LIBERAL ARTS ARE THE CENTER OF THE CURRICULUM THE FACULTY TEACHES IN FRAMEWORKS SHAPED BY CHRISTIANITY THE LEVEL OF THE BEST SCHOLARSHIP AND TEACHING AT CALVIN IS EASILY COMPARABLE TO THAT OF LEADING UNIVERSITIES WITH WHICH I HAVE BEEN WELL ACQUAINTED WHY THEN ARE RELIGIOUSLY INFORMED POINTS OF VIEW SO EFFECTIVELY MARGINALIZED IN AMERICAN HIGHER EDUCATION THE INTUITION OF MANY PEOPLE IS THAT IT HARDLY MAKES SENSE THAT RELIGIOUS PERSPECTIVES SHOULD INFORM SCHOLARSHIP EXCEPT IN THEOLOGY ITSELF IS NOT SCHOLARSHIP AFTER ALL SUPPOSED TO BE SCIENTIFIC WHILE RELIGION IS NOT SUCH WIDELY HELD ASSUMPTIONS HOWEVER SHOULD BE REASSESSED IN THE LIGHT OF RECENT CHANGES IN PREVAILING VIEWS OF SCIENCE TODAY MOST SCHOLARS ADMIT THAT THEIR TECHNICAL INVESTIGATIONS TAKE PLACE WITHIN THE FRAMEWORK OF PRIOR COMMITMENTS AND ASSUMPTIONS THAT ARE NOT THEMSELVES ESTABLISHED ON SCIENTIFIC GROUNDS VIEWED IN THIS LIGHT RELIGIOUSLY SHAPED FRAMEWORKS MAY BE JUST AS INTELLECTUALLY LEGITIMATE AS NONRELIGIOUS ONES FOR INSTANCE WHILE IT MAY BE IMPOSSIBLE TO PROVE THAT THE UNIVERSE WAS CREATED BY AN INTELLIGENCE IT IS EQUALLY IMPOSSIBLE TO PROVE THAT IT WAS NOT YET MOST ACADEMICS TODAY INSIST THAT ONE'S SCHOLARSHIP ACCEPT THE UNPROVEN HYPOTHESIS THAT THERE IS NO CREATED ORDERAS THOUGH IT WERE GOSPEL TRUTH SUCH UNPROVEN ASSUMPTIONS HAVE A GREATER EFFECT IN THE HUMANITIES AND SOCIAL SCIENCES THAN IN THE LARGELY TECHNICAL DISCIPLINES AND NATURAL SCIENCES SINCE MOST SCHOLARS TODAY WILL TOLERATE ONLY A NATURALISTIC UNDERSTANDING OF HUMANS THEY HAVE NO BASIS FOR INTERPRETING MORAL STANDARDS EXCEPT AS SURVIVAL MECHANISMS THAT IS AS SOCIAL CONSTRUCTIONS SUITING THE NEEDS OF A PARTICULAR COMMUNITY THE RESULT OF THIS VIEW IS INEVITABLY MORAL RELATIVISM OF ONE SORT OR ANOTHER RELIGIOUSLY INFORMED SCHOLARS ON THE OTHER HAND WHILE ACKNOWLEDGING THE CULTURAL FORCES THAT SHAPE BELIEFS ARE ALSO OPEN TO THE POSSIBILITY OF PERMANENT UNIVERSAL STANDARDS OF RIGHT AND WRONG ESTABLISHED BY A CREATOR IN A TIME OF MORAL CONFUSION THIS WOULD SEEM TO BE A WELCOME PERSPECTIVE YET IN THE MOST PRESTIGIOUS PARTS OF AMERICAN ACADEMIA RELIGIOUS SCHOLARS ARE GIVEN LESS A VOICE THAN ARE FOR INSTANCE MARXIST SCHOLARS THAT IS ASTONISHING GIVEN THE RELATIVE SIZES OF THEIR RESPECTIVE CONSTITUENCIES IN THE AMERICAN POPULATION ONE OF THE GREAT STRENGTHS OF AMERICAN ACADEMIC LIFE IS ITS DIVERSITY OF OPINION UNFORTUNATELY WITH RESPECT TO RELIGION IN ACADEMIA PLURALISM AND DIVERSITY HAVE BECOME CODE WORDS FOR THEIR OPPOSITE FOR EXCLUSION AND UNIFORMITY WHILE UNIVERSITIES SAY THEY WELCOME DIVERSE CULTURES THEY DO NOT WELCOME THE DISTINCTLY RELIGIOUS DIMENSIONS OF THOSE CULTURES ONE CONSPICUOUS EXAMPLE IS THAT ALTHOUGH UNIVERSITIES WELCOME AFRICANAMERICANS AND BUILD PROGRAMS IN AFRICANAMERICAN STUDIES THEY FIND LITTLE PLACE FOR POSITIVE EVALUATIONS OF THE DOMINANT RELIGION OF AFRICANAMERICAN CULTURE AS STEPHEN CARTER POINTS OUT IN THE CULTURE OF DISBELIEF MARTIN LUTHER KING JR IS DULY LAUDED BUT THE CHRISTIANITY OF THE AFRICANAMERICAN CHURCHES WHICH WAS A DRIVING FORCE BEHIND HIS REFORMS IS SELDOM TAKEN SERIOUSLY WHAT WE NEED THEN IS A BROADER CONCEPTION OF PLURALISM AND DIVERSITY NO INSTITUTION OF COURSE CAN TOLERATE EVERYTHING SOME PROPONENTS OF RELIGIOUS PERSPECTIVES ARE INTELLECTUALLY IRRESPONSIBLE ADVOCATE VIOLENCE TOWARD OTHERS IN THE COMMUNITY OR ARE INTERESTED ONLY IN PROSELYTIZING NONETHELESS AS MR CARTER ARGUES ONE CAN FIND ALL THESE PROBLEMS AMONG NONRELIGIOUS PEOPLE AS WELL IN ANY CASE IT SEEMS UNFAIR TO EXCLUDE OR MARGINALIZE A WHOLE CLASS OF VIEWPOINTS JUST BECAUSE SOME OF THEM MAY CAUSE PROBLEMS EVEN AT STATE SCHOOLS THERE SHOULD BE ROOM FOR AT LEAST REVEALING ONE'S PERSPECTIVE IN THE CLASSROOM IN THE NAME OF TRUTH IN ADVERTISING WHEN I HAVE TAUGHT AS A VISITING PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY THAT IS WHAT I HAVE DONE I HAVE IDENTIFIED MY OWN PERSPECTIVES AND TOLD STUDENTS THAT THEY SHOULD TAKE THEM INTO ACCOUNT BUT THAT I WOULD RESPECT THEIR POINTS OF VIEW AND NOT EXPECT THEM TO AGREE WITH MINE I NEVER HAD ANY COMPLAINTS SURELY SEPARATION OF CHURCH AND STATE SHOULD NOT MEAN EITHER THAT RELIGIOUS PEOPLE MAY NOT TEACH AT STATE INSTITUTIONS OR THAT THEY ARE REQUIRED TO BE SECRETIVE ABOUT THE VIEWPOINTS THAT ARE IN FACT SHAPING THEIR TEACHING INSTITUTIONS THAT CLAIM TO SERVE THE WHOLE PUBLIC AND TO BE INTERNALLY DIVERSE SHOULD BE CHALLENGED TO APPLY THE PRINCIPLE OF DIVERSITY BY OPENLY ALLOWING RESPONSIBLE RELIGIOUS PERSPECTIVES IN CLASSROOMS IF THEY ARE UNWILLING TO INCLUDE RELIGIOUS PERSPECTIVES AMONG THOSE RECOGNIZED THEN WE MIGHT SUGGEST SOME MINOR CHANGES IN THEIR CATALOGS FOR INSTANCE WHERE THEY SAY THIS SCHOOL WELCOMES DIVERSE PERSPECTIVES THERE SHOULD BE A NOTE THAT ADDS EXCEPT OF COURSE RELIGIOUS PERSPECTIVES OR WHERE THEIR CATALOGS OR JOB ADS TALK ABOUT DISCRIMINATION THEY SHOULD HAVE A SENTENCE THAT READS WE DO DISCRIMINATE ON THE BASIS OF RELIGION MR MARSDEN IS A PROFESSOR OF HISTORY AT THE UNIVERSITY OF NOTRE DAME SEE RELATED LETTER LETTERS TO THE EDITOR FIRED FOR BELIEVING WHAT SHE TAUGHT WSJ DEC 30 1993 SEE RELATED LETTERS LETTERS TO THE EDITOR SCIENCE AND RELIGION AND RATIONAL INQUIRY WSJ JAN 4 1994 9312220074 9312300161 YY93 MM12 YY94 MM01 9401030127 931214 LETTERS TO THE EDITOR ETHNIC IDENTITY A PART OF TROUBLES IN ULSTER IN YOUR DEC 1 EDITORIAL MAYHEM OR MAYHEW YOU WRITE NOTHING IN THE LAWS OF NATURE SAYS IRISH CATHOLICS AND IRISH PROTESTANTS MUST ALWAYS FIGHT EACH OTHER THEY ARE INDISTINGUISHABLE IN APPEARANCE AND LANGUAGE AND THAT IS PART OF THE PROBLEM THE TROUBLES IN ULSTER ARE NOT CAUSED SOLELY BY RELIGIOUS DIVISIONS OR POLITICAL DIFFERENCES AT ROOT IT IS AN ETHNIC STRUGGLE THE CATHOLICS ARE DESCENDANTS OF THE INDIGENOUS IRISH POPULATION AND ARE OF THE SAME ETHNIC GROUP AS THE PEOPLE IN THE REPUBLIC OF IRELAND THE PROTESTANTS' FOREBEARS SETTLED IN NORTHERN IRELAND IN THE 17TH AND 18TH CENTURIES THEY WERE REMOVED SOMETIMES FORCIBLY FROM THE BORDER AREA OF SCOTLAND AND ENGLAND AND PURPOSEFULLY SETTLED IN IRELAND THEIR RESETTLEMENT WAS THE RESULT OF POLICIES OF THE BRITISH GOVERNMENT WHICH WAS TRYING TO PACIFY THE COUNTRYSIDE ALONG THE BORDER BETWEEN THE NEWLY UNITED SCOTLAND AND ENGLAND BECAUSE THE TWO PEOPLES ARE INDISTINGUISHABLE IN APPEARANCE THE PROTESTANTS FEAR THE LOSS OF THEIR CULTURAL IDENTITY THEY BELIEVE THAT JOINING ULSTER TO THE IRISH REPUBLIC WILL BE THE FIRST STEP IN THE DEATH OF THEIR ETHNIC IDENTITY CASTING THE TROUBLES IN RELIGIOUS OR POLITICAL TONES IGNORES THE TWO GROUP'S ETHNIC DIFFERENCES FOR THEIR CULTURAL HERITAGES ARE AS DIFFERENT AS THE IRISH CATHOLICS' OF BOSTON IS FROM THAT OF THE SCOTCHIRISH OF APPALACHIA THE BRITISH GOVERNMENT HAS PROGRAMS TO SUPPORT CONTINUATION OF THE WELSH AND HIGHLAND SCOTS CULTURES ANY AGREEMENT TO END THE ULSTER CONFLICT MUST RECOGNIZE THE CULTURAL DIFFERENCES OF THE ULSTER PROTESTANTS SO THAT THEIR CHILDREN DON'T LOSE THEIR IDENTITY AS SCOTCHIRISH SEE RELATED LETTER LETTERS TO THE EDITOR THE IRISH ARE SCOTTISH AND VICE VERSA WSJ JAN 3 1994 9312140006 YY94 MM01 9401030030 931216 THIS YEAR'S VERDICT FREEDOM IN RETREAT IN GLOBAL VACUUM TYRANNY ADVANCES BY ADRIAN KARATNYCKY THE PERIOD OF RAPID DEMOCRATIC GAINS OCCASIONED BY THE COLLAPSE OF SOVIET COMMUNISM APPEARS TO HAVE ENDED AS 1993 DRAWS TO A CLOSE FREEDOM AROUND THE WORLD IS IN RETREAT WHILE VIOLENCE REPRESSION AND STATE CONTROL ARE ON THE INCREASE THE TREND MARKS THE FIRST INCREASE IN FIVE YEARS OF STATES THAT VIOLATE BASIC HUMAN RIGHTS AND IS A DRAMATIC BLOW TO THE DEMOCRATIC RENAISSANCE THAT BEGAN IN 1989 FOR MORE THAN A QUARTER CENTURY FREEDOM HOUSE THE HUMAN RIGHTS ORGANIZATION BASED IN NEW YORK HAS TRACKED THE EBB AND FLOW OF POLITICAL RIGHTS CIVIL LIBERTIES AND DEMOCRACY THE MAP OF FREEDOM SHOWN ABOVE IS THE MOST SUCCINCT EXPRESSION OF OUR YEARLY FINDINGS IN DRAWING OUR JUDGMENTS WE ASSESS WHETHER AND TO WHAT DEGREE EACH COUNTRY HAS ATTAINED A BROAD RANGE OF POLITICAL RIGHTS AND CIVIL LIBERTIES INCLUDING FREE AND COMPETITIVE MULTIPARTY ELECTIONS A FREE PRESS A FREE CLIMATE FOR BUSINESS FREEDOM OF ASSOCIATION FOR UNIONS AND CIVIC GROUPS FREEDOM OF RELIGION AND THE ABSENCE OF A CLIMATE OF POLITICAL OR STATE TERROR IN 1993 THE NUMBER OF PEOPLE LIVING IN FREE SOCIETIES FELL BY 300 MILLION WHILE THE NUMBER DENIED BASIC FREEDOMS ROSE BY 531 MILLION THE PROPORTION OF PEOPLE WHO ARE FREE TODAY STANDS AT 19 THE LOWEST SINCE 1976 MANY COUNTRIES ESPECIALLY IN CENTRAL AND EASTERN EUROPE HAVE MADE IMPRESSIVE TRANSITIONS TO DEMOCRACY AND MANY FREE SOCIETIES ACHIEVED FURTHER STABILITY IN 1993 THE DEMOCRATIC IDEA RETAINED ITS APPEAL WITH THE NUMBER OF DEMOCRACIES RISING TO 107 FROM 99 HOWEVER MANY NEW DEMOCRACIES ARE FRAGILE AND ARE FAILING TO PROTECT FUNDAMENTAL FREEDOMS TYPICAL OF DEMOCRACIES IN TROUBLE ARE INDIA PAKISTAN AND TURKEY IN INDIA ETHNICALLY AND RELIGIOUSLY MOTIVATED INSURGENCIES TOGETHER WITH HIGH LEVELS OF POLITICAL VIOLENCE DURING ELECTIONEERING UNDERMINE THE LEVEL OF FREEDOM IN PAKISTAN AND TURKEY THE OVERARCHING INFLUENCE OF THE MILITARY LIMITS THE POWERS OF DEMOCRATICALLY ELECTED LEADERS AS IN INDIA TURKEY'S BRUTAL AND HEAVYHANDED EFFORT TO SUPPRESS MINORITY SEPARATISM UNDERMINES FREEDOM ALTHOUGH DEMOCRACY HAS MADE PROGRESS IN MANY SETTINGS IT HAS NOT ACHIEVED THE KIND OF SOCIAL ECONOMIC AND ETHNIC STABILITY THAT SECURES FREEDOM A FREE SOCIETY REQUIRES FAR MORE THAN DEMOCRATIC PROCESS IT REQUIRES A DEMOCRATICALLY ORIENTED INFORMED AND ENGAGED CITIZENRY STILL THE CORRELATION BETWEEN DEMOCRACY AND FREEDOM REMAINS STRONG TWOTHIRDS OF DEMOCRACIES ARE FREE AND ALL FREE SOCIETIES ARE DEMOCRACIES IN 1993 42 COUNTRIES REGISTERED A DECLINE IN FREEDOM AND 19 RECORDED GAINS AS A RESULT 72 COUNTRIES ARE FREE 63 PARTLY FREE AND 55 NOT FREE WITH THE LAST CATEGORY UP DRAMATICALLY FROM 38 LAST YEAR NEW ENTRANTS AMONG THE NOT FREE ARE AZERBAIJAN BURUNDI EGYPT ERITREA ETHIOPIA GUINEA INDONESIA IVORY COAST KENYA MOZAMBIQUE NIGERIA SWAZILAND TANZANIA TUNISIA AND YUGOSLAVIA EXCEPT FOR SWAZILAND EACH IS EITHER 1 A MULTIETHNIC STATE WITHOUT A DOMINANT MAJORITY ETHNIC GROUP MORE THAN TWOTHIRDS OF THE POPULATION EXERCISING POLITICAL LEADERSHIP OR 2 A MUSLIM COUNTRY USUALLY CHALLENGED BY FUNDAMENTALIST ISLAM IN INDONESIA BOTH FACTORS ARE AT WORK THE MAJOR REGIONAL TREND THIS YEAR IS THE UPHEAVAL AND DRAMATIC CHANGE IN SUBSAHARAN AFRICA WITH 9 STATES MAKING NOTABLE PROGRESS TOWARD FREEDOM WHILE REPRESSION WORSENED IN 18 STATES THE YEAR'S DRAMATIC DECLINE IN FREEDOM WORLDWIDE CAN BE ATTRIBUTED IN PART TO THE FAILURE OF THE DEMOCRATIC NATIONS TO DEVELOP A UNITY OF PURPOSE IN SUPPORT OF INTERNATIONAL SECURITY ECONOMIC GROWTH AND HUMAN RIGHTS IN PART FREEDOM'S RETREAT RESULTS FROM AN AWARENESS AMONG TYRANTS THAT THEY CAN FLOUT INTERNATIONAL LAW AND THE DEMOCRATIC COMMUNITY WHICH HAS PROVED INCAPABLE OF EXERTING ITS INFLUENCE IN BOSNIA SOMALIA AND HAITI TYRANTS TOO ARE CREATING NEW NETWORKS OF COOPERATION TO STRENGTHEN EACH OTHER THE GROWING ECONOMIC RESOURCES OF SOME OF THE MOST REPRESSIVE STATES CHINA AND IRAN AMONG THEM PERMIT TYRANNIES TO EXERT INFLUENCE IN THE GLOBAL VACUUM THE WORLD THUS APPEARS ON THE ROAD TO A NEW POSTCOLD WAR BIPOLARITY WITH TENSIONS BETWEEN A COMMUNITY OF FREE NATIONS AND A REPRESSIVE GROUP OF NOT FREE STATES REPLACING TRADITIONAL EASTWEST NORTHSOUTH DIVIDES DICTATORS INITIALLY UNCERTAIN ABOUT THE EMERGING POSTCOLD WAR ORDER ARE BEGINNING TO TEST IT IN THE CONTEXT OF THE FECKLESS UNITED NATIONS INTERVENTION IN SOMALIA NATO'S FAILURE IN BOSNIA AND THE US FAILURE TO PUNISH THE HAITIAN MILITARY THOSE WILLING TO USE BRUTE FORCE ON BEHALF OF ABSOLUTE POWER HAVE BEEN GIVEN A GREEN LIGHT THE COLLAPSE OF THE SOVIET BLOC LED MANY TO CONCLUDE THAT THE TYRANNIES WOULD INCREASINGLY BE ISOLATED POCKETS OF ECONOMIC MISERY REALITY HAS PROVED MORE COMPLEX WITH TRENDS IN ASIA AND THE MIDDLE EAST SUGGESTING THAT TRADITIONAL IDEAS ABOUT THE RELATIONSHIP BETWEEN ECONOMIC PROSPERITY AND DEMOCRATIC CHANGE NEED TO BE REEXAMINED WHILE DEMOCRACY REMAINS AN ENGINE OF PROSPERITY AND FREE MARKETS PROPEL DEMOCRATIC TRANSFORMATIONS A NUMBER OF NOT FREE STATES NOW POSSESS GROWING ECONOMIC INDUSTRIAL AND MILITARY RESOURCES WHILE THESE STATES WITH TIME ARE LIKELY TO GIVE WAY TO DEMOCRATIZING PRESSURES THEY ARE TODAY USING NATURAL RESOURCES AND LABOR TO PROPEL ECONOMIC GROWTH WHILE HOLDING A TIGHT GRIP ON POLITICAL CHANGE WITH THE WORLD INCREASINGLY UNFREE AND CONFLICTRIDDEN THE US PUBLIC'S INCLINATION TO WITHDRAW FROM FOREIGN AFFAIRS IS OUT OF SYNC WITH THE CHALLENGES OF AN OMINOUS GLOBAL SETTING IN SHORT THE NEW GLOBAL THREAT TO DEMOCRACY CRIES OUT FOR PRESIDENTIAL LEADERSHIP MR KARATNYCKY EXECUTIVE DIRECTOR OF FREEDOM HOUSE IS COORDINATOR OF THE COMPARATIVE SURVEY OF FREEDOM SEE RELATED LETTER LETTERS TO THE EDITOR TURKEY DISPUTES PORTRAYAL IN ARTICLE WSJ JAN 3 1994 9312160096 YY94 MM01 9401030027 931216 THE HEALTH POLICE ARE COMING BY BRADLEY A SMITH DESPITE ALL THE CONTROVERSY SURROUNDING THE PRESIDENT'S PROPOSED HEALTH SECURITY ACT NARY A WORD HAS BEEN HEARD ABOUT THE SIGNIFICANT NEW CIVIL AND CRIMINAL PENALTIES INCLUDED IN THE ACT THESE NEW CRIMES AND PENALTIES BOTH RAISE SIGNIFICANT ISSUES IN THEIR OWN RIGHT AND BELIE THE ADMINISTRATION'S CLAIMS THAT ITS PLAN RELIES ON MARKET INCENTIVES AND CHOICE THE HEALTH SECURITY ACT FEDERALIZES A BROAD RANGE OF ROUTINE CRIMES AND TORTS PREVIOUSLY DEALT WITH BY THE STATES MOST NOTABLY THE ACT CREATES TWO BROAD NEW CATEGORIES OF FEDERAL CRIME DUBBED FEDERAL HEALTH CARE OFFENSE AND HEALTH CARE FRAUD SEC 5402D 5401 HEALTH CARE FRAUD INCLUDES AMONG OTHER THINGS ANY EFFORT TO DEFRAUD A HEALTH PLAN IE A PRIVATE INSURER HEALTH MAINTENANCE ORGANIZATION OR SELFINSURED EMPLOYER OR ANY OTHER PERSON IN CONNECTION WITH THE DELIVERY OR PAYMENT OF HEALTH CARE BENEFITS SUPPLIES OR SERVICES THUS THE ACT FEDERALIZES MUNDANE FRAUD CASES MERELY BECAUSE THEY ARE PERPETRATED ON AN ORGANIZATION THAT PROVIDES HEALTH CARE WHILE THE HAMFISTED NATURE OF THESE PENALTIES IS TROUBLING ENOUGH HEALTH CARE FRAUD FOR EXAMPLE IS PUNISHABLE BY CRIMINAL PENALTIES RANGING UP TO LIFE IMPRISONMENT AN EVEN MORE SERIOUS QUESTION IS THE WISDOM OF TURNING ROUTINE EVENTS EFFECTIVELY HANDLED ON A LOCAL LEVEL INTO FEDERAL CRIMES NOT ONLY ARE STATE AND LOCAL AUTHORITIES BETTER EQUIPPED TO DEAL WITH MOST CRIME BUT LOCAL CONTROL OF LAW ENFORCEMENT IS A FUNDAMENTAL CHECK ON FEDERAL POWER THE ACT MAKES IT A FEDERAL HEALTH CARE OFFENSE TO WILLFULLY FALSIFY OR CONCEAL ANY MATERIAL FACT IN ANY MATTER INVOLVING A HEALTH PLAN SEC 5433 TO UNDERSTAND THE EFFECTS OF SUCH LANGUAGE IMAGINE A SITUATION IN WHICH A PROVIDER OF JANITORIAL SERVICES MISREPRESENTS THAT SHE IS BONDED WHEN NEGOTIATING A CONTRACT TO CLEAN THE OFFICES OF AN HMO TODAY THIS IS NO MORE THAN A STATE CIVIL LAW CONTRACT CLAIM FOR WHICH THE HMO COULD RECOVER ANY ACTUAL DAMAGES SUFFERED IN A CIVIL LAWSUIT HOWEVER UNDER THE CLINTON PLAN THE JANITORS WOULD HAVE COMMITTED A FEDERAL CRIME PUNISHABLE BY FINES AND IMPRISONMENT FOR UP TO FIVE YEARS THIS WOULD BE TRUE EVEN IF NO HARM HAD EVER COME TO THE HMO BECAUSE OF THE CONCEALMENT OF A FACT SIMILARLY THE ACT MAKES FEDERAL CRIMES OUT OF EMBEZZLEMENT THEFT OR UNLAWFUL CONVERSION OF ANY ASSETS OF A PRIVATE HMO INSURER OR EMPLOYER THAT PROVIDES COVERAGE UNDER THE ACT SEC 5437 ANOTHER DISTURBING FEATURE OF THE ACT'S CRIMINAL PENALTIES IS THE PROVISION FOR ASSET FORFEITURE UNDER THE ACT WHENEVER A PERSON IS CONVICTED OF A FEDERAL HEALTH CARE OFFENSE HAVING A SIGNIFICANT DETRIMENTAL IMPACT ON THE HEALTH CARE SYSTEM A PHRASE LEFT UNDEFINED THE COURT MUST ORDER THE FORFEITURE OF PROPERTY INCLUDING PERSONAL PROPERTY THAT EITHER WAS USED IN THE COMMISSION OF THE OFFENSE OR IS DERIVED FROM PROCEEDS TRACEABLE TO THE OFFENSE SEC 5432 PROCEEDS FROM THESE ASSET FORFEITURES ARE TO BE DEPOSITED IN AN ALL PAYER HEALTH CARE FRAUD & ABUSE ACCOUNT WHICH WILL BE CONTROLLED BY THE INSPECTOR GENERAL OF HEALTH AND HUMAN SERVICES THESE FUNDS CAN THEN BE USED BY THE INSPECTOR GENERAL TO EXPAND INVESTIGATIVE ACTIVITIES ADDITIONALLY ANY OTHER PENALTIES ASSESSED FOR CLAIMS RELATED TO THE PROVISION OF HEALTH CARE GO INTO THE FUND AGAIN TO BE RECYCLED BY THE INSPECTOR GENERAL IN ADDITIONAL INVESTIGATIONS SEC 5402 CIVIL LIBERTARIANS SHOULD BE CONCERNED ABOUT AN ACT THAT PROVIDES DIRECT BUDGETARY INCENTIVES FOR PROSECUTORS AND INVESTIGATORS TO PURSUE MAXIMUM ASSET FORFEITURES AND TO BRING MARGINAL OR EVEN BASELESS CHARGES IN THE HOPE OF EXTRACTING QUICK SETTLEMENTS FROM DEFENDANTS THE LENGTHY LIST OF CRIMINAL AND CIVIL PENALTIES ALSO LAYS TO REST THE ADMINISTRATION'S OFTREPEATED CLAIMS THAT THIS IS A PLAN BASED ON CHOICE AND MARKET INCENTIVES THIS IS A PLAN BASED ON COERCION PURE AND SIMPLE AND LOTS OF IT A TELLTALE SIGN IS THE CREATION OF A NEW FEDERAL CRIME FOR BRIBERY IN CONNECTION WITH HEALTH CARE ANY OFFER OR PROMISE OF VALUE TO INFLUENCE ACTIONS DECISIONS OR DUTIES RELATING TO A HEALTH ALLIANCE OR HEALTH PLAN IS PUNISHABLE BY UP TO 10 YEARS IN PRISON SEC 5434 THE OBVIOUS QUESTION WHY WOULD A PERSON WANT TO BRIBE ANYONE OVER HEALTH CARE DESPITE RHETORIC TO THE CONTRARY THE CLINTONS MUST KNOW THIS PLAN WILL RESULT IN RATIONING THERE WILL UNDOUBTEDLY BE SHORTAGES AND WAITING LISTS FOR PROCEDURES AND BRIBES MIGHT PROVIDE PATIENTS WITH A LIFESAVING SHORT CUT ON THE OTHER SIDE OF THE TABLE MEDICAL STUDENTS THEIR OPTIONS TO ENTER THE SPECIALTY OF THEIR CHOICE LIMITED BY THE ACT'S QUOTAS ON SPECIALISTS MIGHT SEEK TO ENSURE THEIR DESIRED CAREER THROUGH A WELLPLACED GIFT IN A PLAN THAT IGNORES MARKETS BRIBERY AND INFLUENCE PEDDLING WILL BE THE NATURAL RESULT THE CRIMINAL AND CIVIL PENALTIES IN THE ACT ROLL ON AND ON A HEALTH INSURER HMO OR SELFINSURED EMPLOYER THAT FAILS TO PAY CLAIMS PROMPTLY MAY BE FINED UP TO 1 MILLION FOR REPEAT OFFENSES SEC 5206 THUS A PLAN THAT DELAYS PAYMENT TO INVESTIGATE POSSIBLE FRAUD MAY FIND ITSELF SUED BY THE FEDERAL GOVERNMENT DRUG COMPANIES THAT DO NOT PROVIDE ON A TIMELY BASIS THE COST INFORMATION THE GOVERNMENT REQUESTS TO NEGOTIATE DISCOUNTS ARE SUBJECT TO A 10000 PENALTY FOR EACH OFFENSE THE PENALTIES INCREASE UP TO 100000 PER OFFENSE IF THE INFORMATION TURNS OUT EVEN ACCIDENTALLY TO BE INCORRECT SEC 2003 SIMILARLY A SELFINSURED EMPLOYER MAY BE FINED UP TO 100000 MERELY FOR FAILING TO REPORT FINANCIAL INFORMATION ON A TIMELY BASIS SEC 1394 THERE ARE EVEN PENALTIES FOR A HEALTH INSURER THAT DARES TO OFFER FINANCIAL INCENTIVES TO ENROLL IN ITS PLAN SEC 5412 AND SHOULD A HEALTH INSURER OR DOCTOR DEVISE A SIMPLER OR MORE EFFICIENT ENROLLMENT CLAIM OR REPORTING FORM THAN THAT PRESCRIBED BY THE NEWLY CREATED NATIONAL HEALTH BOARD THE INSURER OR DOCTOR MAY BE FINED UP TO 10000 FOR EACH USE OF SUCH A FORM SEC 5141B THIS IS NOT MANAGED COMPETITION IT IS BUREAUCRATIC EDICT BACKED UP BY GOVERNMENT FORCE IF THESE NEW CRIMINAL AND CIVIL PENALTIES ARE NOT ENOUGH AND THE ABOVE LIST IS HARDLY EXHAUSTIVE THE ACT ALSO CREATES NEW CAUSES OF ACTION FOR PRIVATE LAWSUITS AGAINST HEALTH CARE PROVIDERS FOR EXAMPLE THE ACT PROVIDES A PRIVATE RIGHT TO SUE FOR DISCRIMINATION BY ANY HEALTH PLAN ON THE BASIS OF RACE SEX AGE NATIONAL ORIGIN OR CATCH THIS INCOME OR PERCEIVED FUTURE DEMAND FOR HEALTH SERVICES PLAINTIFFS CAN HOLD OVER A DEFENDANT'S HEAD THE THREAT OF ATTORNEY FEES COMPENSATORY DAMAGES PUNITIVE DAMAGES AND AN ADDED CIVIL PENALTY OF UP TO 100000 SEC 5238 THESE ANTIDISCRIMINATION CLAUSES APPLY TO ANY HEALTH INSURER HMO OR SELFINSURED EMPLOYER THAT ENGAGES IN ANY ACTIVITY WITH A DISCRIMINATORY EFFECT WHETHER OR NOT THE ACTIVITY IS EVEN RELATED TO THE PROVISION OF HEALTH CARE AND WHETHER OR NOT THE ACTIVITY IS INTENDED TO HAVE A DISCRIMINATORY EFFECT SEC 1402C YES EVEN TRIMMING A PAYROLL TO REDUCE COSTS MAY BE PROHIBITED INCOME DISCRIMINATION UNDER THE ACT IN MAKING ITS SALES PITCH THE ADMINISTRATION HAS STEADFASTLY DENIED THAT THE PLAN WILL RESTRICT CHOICE AND COMPETITION OR CREATE A MASSIVE FEDERAL BUREAUCRACY AT THE EXPENSE OF THE STATES THE ACT'S EXTENSIVE PROVISIONS FOR CIVIL AND CRIMINAL PENALTIES TELL OTHERWISE MR SMITH IS A VISITING ASSISTANT PROFESSOR AT CAPITAL UNIVERSITY LAW SCHOOL COLUMBUS OHIO SEE RELATED LETTER LETTERS TO THE EDITOR CRIMINALIZING MEDICINE WSJ JAN 3 1994 9312160073 YY94 MM01 9401030061 931124 TEXAS JOURNAL ECONOMIC FOCUS THE SCORE THAT COUNTS SPORTS' ECONOMIC IMPACT BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL MICHAEL IRVIN CAN RUN FASTER AND CATCH BETTER THAN YOUR AVERAGE TEXAS CONSTRUCTION WORKER BUT DOES HE DO MORE FOR THE LOCAL ECONOMY THIS QUESTION ISN'T LIKELY TO PLAGUE TOO MANY FOOTBALL FANS TOMORROW AS THEY WATCH THE DALLAS COWBOYS TAKE ON THE MIAMI DOLPHINS BUT IT'S THE SORT OF THING THAT CONSUMES ECONOMISTS SPECIFICALLY HOW DO YOU QUANTIFY THE ECONOMIC IMPACT OF PROFESSIONAL SPORTS ESPECIALLY IN AN AGE WHEN LOCAL TAXPAYERS AROUND THE COUNTRY ARE BEING ASKED TO FOOT THE BILL FOR ATTRACTING NEW FRANCHISES IN A NEWLY RELEASED STUDY THE TEXAS COMPTROLLER'S OFFICE TACKLES THE ISSUE AND COMES UP WITH SOME INTERESTING STATS THE 263 PROFESSIONAL ATHLETES ON TEXAS' MAJORLEAGUE TEAMS EARNED 167 MILLION DURING THE 19921993 SEASONS OR AN AVERAGE OF 635000 PER PLAYER DIRECT EXPENDITURES BY THE SEVEN PROFESSIONAL SPORTS TEAMS HERE TOTALED 263 MILLION BUT THE RIPPLE EFFECT AS FOR INSTANCE WHEN PLAYERS BOUGHT BMWS AND STADIUM CLEANING CREWS BOUGHT MOPS SPREAD AN ADDITIONAL 603 MILLION THROUGH THE TEXAS ECONOMY FOR A COMBINED IMPACT OF 866 MILLION STATE SALESTAX RECEIPTS FROM TICKETS INSTADIUM PURCHASES AND LICENSED MERCHANDISE LAST YEAR TOTALED 512 MILLION THE COMPTROLLER ESTIMATES IT ALL SOUNDS PRETTY IMPRESSIVE BUT IS IT REALLY A BIG DEAL YES AND NO FOR STARTERS 866 MILLION IS BUT A TINY FRACTION OF THE STATE'S TOTAL OUTPUT OF GOODS AND SERVICES WHICH SHOULD REACH SOME 3475 BILLION THIS YEAR NOR ARE THE SALESTAX RECEIPTS NECESSARILY SIGNIFICANT WITHOUT PRO SPORTS FANS PROBABLY WOULD HAVE SPENT THEIR MONEY ON OTHER FORMS OF ENTERTAINMENT SO THE NET GAIN IS PRETTY MUCH NIL FINALLY WAGES PAID TO SAY CONSTRUCTION WORKERS PROBABLY CIRCULATE A LOT FASTER THROUGH THE LOCAL ECONOMY THAN A PRO ATHLETE'S MULTIMILLION DOLLAR SALARY WORKERS SPEND MUCH OF WHAT THEY EARN WHILE ATHLETES IF THEY'RE SMART DON'T MOREOVER MANY PRO ATHLETES DON'T EVEN LIVE IN TEXAS YEARROUND ON THE OTHER HAND TO THE EXTENT THAT PRO SPORTING EVENTS ATTRACT TOURISTS ESPECIALLY FROM OUTOFSTATE THEY DEFINITELY PROVIDE A NET GAIN TO THE LOCAL ECONOMY SAYS CORIE CALDAROLA A RESEARCH ANALYST AT THE COMPTROLLER'S OFFICE AND AUTHOR OF THE STUDY SHE CITES A 1992 HOUSTON ASTROS SURVEY WHICH ESTIMATED THAT THE TEAM ATTRACTS 400000 FANS A YEAR FROM OUT OF TOWN RESULTING IN ABOUT 30 MILLION IN TOURISM REVENUE EXTRAPOLATING THOSE FIGURES TO ALL MAJOR LEAGUE SPORTING EVENTS THROUGHOUT TEXAS AND THE IMPACT MIGHT TOP 100 MILLION SHE WRITES EVEN TOWNS THAT DON'T HAVE PRO SPORTS TEAMS CAN GET IN ON THE ACT THE STUDY NOTES THE AUSTIN AREA REAPED AN ADDITIONAL 4 MILLION IN NEW DIRECT SPENDING LAST YEAR BY HOSTING THE DALLAS COWBOYS SPRINGTRAINING CAMP WHICH USED TO BE HELD IN CALIFORNIA WHILE SAN ANTONIO GENERATED 2 MILLION TO 3 MILLION FROM THE HOUSTON OILERS CAMP AND TWO PRESEASON GAMES NOW SAN MARCOS AND BEAUMONT ARE TRYING TO RECRUIT TEAMS FOR SPRING TRAINING EVEN MORE BUCKS COULD BE GENERATED IF A TEXAS CITY COULD LAND AN EVENT SUCH AS THE SUPER BOWL AN ARGUMENT NOW BEING VOICED IN HOUSTON BY BACKERS OF A NEW DOMED STADIUM THE REAL PAYOFF HERE IS GOING TO BE IN DEVELOPING THESE ONETIME SPORTING EVENTS SAYS MS CALDAROLA BECAUSE THOSE ARE THE THINGS THAT PROVIDE NEW DOLLARS YOU CAN IDENTIFY TO THE ECONOMY MEANWHILE SUPPORTERS ARGUE PRO SPORTS BRING INTANGIBLE BENEFITS JOHN ADAMS CHAIRMAN OF THE GREATER DALLAS CHAMBER OF COMMERCE SAYS THE AREA'S FOUR MAJORLEAGUE TEAMS ARE A SELLING POINT WHEN THE CITY RECRUITS OUTOFSTATE COMPANIES AND THAT'S ESPECIALLY TRUE WHEN THE TEAMS ARE DOING WELL WHEN YOU HAVE A WINNING TEAM I THINK EVERYONE'S ATTITUDE IN THE CITY IS A LOT MORE POSITIVE AND RECRUITS FEEL BETTER ABOUT THE CITY THEMSELVES HE SAYS NIPPED IN THE POD THE TEXAS PECAN CROP THIS YEAR WAS SUPPOSED TO BE THE BIGGEST IN A DECADE BUT AN EARLY COLD SNAP HAS CHILLED THE OUTLOOK THE FREEZE CAME EARLY AND THE PECANS WERE JUST OPENING SAYS ROCKY BRAY AN EMPLOYEE OF THE PECAN SHED A GROWER IN BYERS NEAR WICHITA FALLS IT FROZE THEM IN THE SHUCKS THE PODS THAT SURROUND PECANS BEFORE THEY MATURE MOREOVER INDUSTRY OBSERVERS CONTINUE TO FORECAST A GIANT PECAN CROP NATIONWIDE AND LOWER PRICES TEXAS NATIVE PECANS WHICH HIT THE GROCERY SHELVES THIS MONTH HAVE BEEN SELLING FOR AN AVERAGE OF 45 CENTS A POUND DOWN FROM 115 LAST YEAR SAYS CINDY LOGGINS WISE EXECUTIVE VICE PRESIDENT OF THE TEXAS PECAN GROWERS ASSOCIATION TEXAS LED THE NATION IN PECAN PRODUCTION LAST YEAR FOR THE FIRST TIME IN AT LEAST A DECADE THE STATE'S 62MILLIONPOUND CROP WAS VALUED AT 87 MILLION MS WISE SAYS WHILE TREE DISEASES HURT THE HAUL IN GEORGIA THE USUAL LEADER THIS YEAR GEORGIA WASN'T HIT AS HARD BY THE EARLY FREEZE THE FEDERAL GOVERNMENT PREDICTS GEORGIA'S PECAN CROP AT 130 MILLION POUNDS THIS YEAR INDUSTRY OBSERVERS ESTIMATE THAT TEXAS WILL PRODUCE ONLY 50 MILLION TO 55 MILLION POUNDS WELL BELOW EARLIER EXPECTATIONS OF 85 MILLION 9401030054 931117 TEXAS JOURNAL LETTERS TO THE EDITOR SAVING DALLAS IN HOW CAN DALLAS BE SAVED NOV 3 YOU RAISED AN IMPORTANT QUESTION BUT MISSED MANY CRITICAL DIMENSIONS CONSIDER JUST A FEW GOVERNMENT AND BUSINESS LEADERSHIP IN THE CITY ARE COALESCING AROUND NEW STRATEGIES AND POLICIES AIMED AT ACHIEVING UNPRECEDENTED PUBLIC/PRIVATE ACTION TOWARD DOWNTOWN REVITALIZATION 9401030053 931117 TEXAS JOURNAL LETTERS TO THE EDITOR MISPLACED ENERGY I AM WRITING IN RESPONSE TO YOUR NOV 3 ARTICLE IN WHICH I WAS INAPPROPRIATELY QUOTED AS SAYING THAT THE US DEPARTMENT OF ENERGY HAD DECIDED AGAINST INCLUDING AN OIL IMPORT FEE IN ITS SOONTOBERELEASED DOMESTIC NATURAL GAS AND OIL INITIATIVE BECAUSE SUCH A FEE WOULD HURT CONSUMERS IN OUR CONVERSATION I INDICATED THAT AN OIL IMPORT FEE HAS BEEN EFFECTIVELY RULED OUT BECAUSE OF THE UNLIKELIHOOD ON THE PART OF THE CONGRESS TO ENACT SUCH LEGISLATION I ALSO NOTED THAT THE CONGRESS HAD FAILED TO PASS THE PRESIDENT'S PROPOSED BTU TAX WHICH WOULD HAVE SIGNIFICANTLY CUT OIL IMPORTS AND HAD BEEN HESITANT TO PASS A MINIMAL INCREASE IN THE GASOLINE TAX HOWEVER YOUR CONCLUSION THAT THE CONGRESS WOULD NOT BE WILLING TO ADOPT SUCH A PROVISION BECAUSE IT WOULD RAISE CONSUMER COSTS WAS INAPPROPRIATELY ATTRIBUTED TO ME WE HADN'T DISCUSSED THE IMPACT OF AN IMPORT FEE ON CONSUMERS THE FACT REMAINS THAT THERE ARE A HOST OF REASONS WHY THE CONGRESS IS RELUCTANT TO IMPOSE ANY TYPE OF TAXES ON ENERGY 9401030052 931117 TEXAS JOURNAL WINNERS & LOSERS AMARILLO ENERGY SECRETARY HAZEL O'LEARY ANNOUNCED PLANS TO ESTABLISH A NATIONAL RESEARCH LAB HERE TO IMPROVE METHODS FOR DISMANTLING NUCLEAR WEAPONS NONSMOKERS ATTORNEY GENERAL DAN MORALES WANTS TO ELIMINATE SMOKING IN SOME FASTFOOD RESTAURANTS UNLESS THEY MAKE SURE NONSMOKING AREAS DON'T RECEIVE SECONDHAND SMOKE JOHN SHARP THE TEXAS COMPTROLLER WINS A CONVERT TO HIS GOAL OF MERGING WITH THE TREASURER'S OFFICE TREASURER MARTHA WHITEHEAD HARRIS COUNTY INDUSTRIES A LAWYER IN HOUSTON IS SEEKING 15 TRILLION IN DAMAGES FROM OIL AND CHEMICAL PLANTS IN THE SHIPCHANNEL AREA ALLEGING THEIR POLLUTANTS HAVE HARMED RESIDENTS EXXON THE OIL GIANT'S EXXON CHEMICAL DIVISION ADMITTING ITS FORMER ENGINE TESTING LAB FALSIFIED ARMY REPORTS AGREED TO PAY 38 MILLION IN FINES AND RESTITUTION FOOD LION THE SALISBURY NC SUPERMARKET CHAIN MAY LEAVE THIS TEXAS MARKET IF IT CAN'T IMPROVE SALES AND PROFITS 9401030051 931117 TEXAS JOURNAL UNIONS STATE OFFICIALS HAVE AN UNEASY TRUCE ON NAFTA BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL FOR ORGANIZED LABOR IN TEXAS THE BATTLE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT IS A FAMILY FEUD TEXAS UNIONS LIKE THEIR COUNTERPARTS AROUND THE COUNTRY STRONGLY OPPOSE THE TRADE PACT FLOODING REPRESENTATIVES WITH PHONE CALLS AND POSTCARDS AND RALLYING THIS PAST WEEKEND IN AUSTIN BUT IN DOING SO TEXAS' UNIONS FIND THEMSELVES AT ODDS WITH MOST ELECTED OFFICIALS INCLUDING SOME OF LABOR'S STAUNCHEST ALLIES SO FAR AN UNEASY TRUCE PREVAILS BETWEEN LABOR AND ITS FRIENDS IN OFFICE ALTHOUGH MOST STATE OFFICIALS FAVOR THE FREETRADE AGREEMENT NEARLY ALL HAVE BEEN SILENT ON THE ISSUE GOV ANN RICHARDS IS THE NOTABLE EXCEPTION AND FOR THE MOST PART UNION OFFICIALS HAVE REFRAINED FROM SHARP ATTACKS OR THREATENED RETALIATION AGAINST PRONAFTA OFFICEHOLDERS IN AUSTIN OR WASHINGTON LABOR AND DEMOCRATIC POLITICAL OFFICIALS HAVE FOUGHT SO MANY POLITICAL BATTLES TOGETHER THAT THEY'RE NOT GOING TO BLOW IT ON THIS ONE DEAL SAYS DEE SIMPSON TEXAS POLITICAL DIRECTOR FOR THE ASSOCIATION OF FEDERAL STATE COUNTY AND MUNICIPAL EMPLOYEES STILL FEELINGS ARE RUNNING HIGH ESPECIALLY AMONG LABOR AND SOME SEE A LONGTERM SOURING OF LONGHELD FRIENDSHIPS YOU CAN'T FIGHT A LIFEORDEATH BATTLE AND GET UP THE NEXT MORNING SAYING WELL IT'S OVER ' SAYS PECK YOUNG AN AUSTIN POLITICAL AFFAIRS CONSULTANT UNIONS NEVER STRONG IN TEXAS TO BEGIN WITH ARE ON THE WRONG SIDE OF PUBLIC OPINION ON NAFTA BY NEARLY EVERY RECKONING TEXAS WHICH ACCOUNTS FOR ABOUT 45 OF ALL US TRADE WITH MEXICO WILL THRIVE ON THE INCREASED COMMERCE PROMISED BY THE AGREEMENT THE MOST CONSERVATIVE FORECAST PROJECTS 182000 NEW JOBS IN THE STATE BY 2003 IF THE AGREEMENT PASSES NEARLY HALF OF THE TEXANS IN A RECENT POLL SAID THEY FAVOR NAFTA SOMEWHAT MORE THAN IN THE US AS A WHOLE ABOUT THREEFOURTHS OF THE STATE'S 32MEMBER CONGRESSIONAL DELEGATION FAVOR THE PACT LABOR THOUGH ISN'T CONVINCED ALTHOUGH MANY UNION MEMBERS AT SATURDAY'S ANTINAFTA RALLY SAID THEY DIDN'T THINK THEIR JOBS WERE THREATENED TRUCKERS SEE DANGER FROM AN INFLUX OF DRIVERS FROM MEXICO GARMENT WORKERS FEAR THAT FALLING US TARIFFS WILL SEND THE HEAVILY PROTECTED TEXTILE INDUSTRY FROM THE LOWWAGE BORDER TO LOWERWAGE MEXICO RECOGNIZING THEIR CLOUT IS LIMITED UNIONS HAVE FOCUSED ON THE HANDFUL OF DISTRICTS WHERE THEIR NUMBERS CAN HAVE INFLUENCE FOUR MEMBERS OF THE TEXAS DELEGATION WHO HAVE SAID THEY WILL VOTE AGAINST NAFTA REPRESENT HEAVILY UNIONIZED BLUECOLLAR DISTRICTS THIS HAS INCREASED THE PRESSURE ON FRESHMAN REP GENE GREEN THE DEMOCRAT FROM HOUSTON RELIED ON LABOR SUPPORT FOR HIS NARROW ELECTION VICTORY LAST YEAR SO ALTHOUGH HIS DISTRICT INCLUDES THE PORT OF HOUSTON WHICH COULD SEE A BOOM FROM INCREASED TRADE WITH MEXICO OPPOSITION FROM REFINERY STEEL AND SHIPYARD WORKERS HAS PERSUADED REP GREEN TO OPPOSE NAFTA UNLESS CERTAIN PROTECTIONS AGAINST JOB LOSSES ARE IN PLACE FOR OTHERS ESPECIALLY STATE OFFICIALS SUCH AS GOV RICHARDS THE RISKS AREN'T AS GREAT EVEN THOUGH THE 1200 MEMBERS WHO RALLIED SATURDAY WITHIN YELLING DISTANCE OF THE GOVERNOR'S MANSION CHEERED THREATS TO BRING HOME MEMBERS OF CONGRESS WHO VOTE FOR THE PACT SHE KNOWS WE HAVE NOWHERE ELSE TO GO SAYS GEORGE FARENTHOLD A LABOR AND ENVIRONMENTAL ACTIVIST 9401030025 931117 TEXAS JOURNAL LETTERS TO THE EDITOR TALES OF RELOCATION VOLUME TWO IN YOUR ARTICLE ON RECRUITING CALIFORNIA FIRMS YOU CITED THE THINGS THAT AUSTIN DID AND SAN ANTONIO DID NOT DO IN THEIR COMPETITION TO RECRUIT MICHAEL ANGELO'S GOURMET FOODS INC THE MAJOR POINT THAT FAILED TO BE MENTIONED WAS THAT MICHAEL ANGELO'S DID NOT CHOOSE EITHER OF THESE COMMUNITIES BUT INSTEAD IS BUILDING A 125000 SQ FT FACILITY THAT WILL EMPLOY 500 PEOPLE IN ROUND ROCK POPULATION 37000 WE ARE LOCATED JUST 15 MILES NORTH OF AUSTIN IN THE SAME ISSUE WINNER & LOSERS LISTS WILLIAMSON COUNTY AND TWO OF OUR COUNTY COMMISSIONERS WHO ARE OPPOSING A TAX ABATEMENT FOR APPLE COMPUTER IT SHOULD BE NOTED THERE ARE ALSO TWO COUNTY COMMISSIONERS WHO SUPPORT THE TAX ABATEMENT AND THAT UNTIL THE ISSUE IS FORMALLY BROUGHT TO THE COUNTY COMMISSIONERS COURT AS AN AGENDA ITEM NOTHING HAS BEEN FINALIZED THE FACT THAT DELL COMPUTER APPLE COMPUTER STATE FARM INSURANCE AND INTERMEDIC ORTHOPEDICS HAVE ALL RECENTLY LOCATED MAJOR FACILITIES IN WILLIAMSON COUNTY SHOULD MAKE US ONE OF THE BIGGEST WINNERS IN TEXAS IF PROJECTS OF THIS CALIBER DO NOT MAKE A WINNER I GUESS WE WILL ALL SMILE IN WILLIAMSON COUNTY AND WE'LL BE THE BEST LOSER IN THE STATE OF TEXAS REGARDING THE OCT 27 STORY ON RECRUITING CALIFORNIA COMPANIES HOT TEXAS IMPORT CALIFORNIA FIRMS THE ARLINGTON ECONOMIC DEVELOPMENT FOUNDATION AND THE ARLINGTON CHAMBER OF COMMERCE HAVE BEEN SUCCESSFUL IN DRAWING 750 POSITIONS FROM NATIONAL SEMICONDUCTOR'S CALIFORNIA OPERATIONS TO ARLINGTON OF THOSE 400 HAVE BEEN CREATED TO DATE WITH MORE EXPANSION AND JOBS PROMISED IN THE FUTURE HUGHES TRAINING IS A SIMILAR CASE WITH 148 NEW POSITIONS FILLED TO DATE OUT OF 750 PROMISED JOBS WE HAVE RECENTLY COMPLETED ANOTHER CALIFORNIA MARKETING MAILING TO SOME 1300 FIRMS WE WILL BE SENDING A DELEGATION OUT TO MEET WITH FIRMS INTERESTED IN RELOCATION OR EXPANDING IN ARLINGTON IN THE MIDDLE OF THIS MONTH 9401030013 931124 TEXAS JOURNAL RIDDLE WHY DOES OIL FIRM WELCOME A POLLUTION RULE BY CALEB SOLOMON HOUSTON TEXAS OIL COMPANIES ARE NOTORIOUS FOR KICKING AND SCREAMING AT EVERY NEW ENVIRONMENTAL RULE THAT COMES DOWN THE PIKE SO WHY IS PENNZOIL CO SMILING FIRST A LITTLE BACKGROUND THE CLEAN AIR ACT OF 1990 REQUIRES BIG EMPLOYERS IN AREAS WITH SEVERE AIR POLLUTION TO FIND WAYS TO REDUCE THE NUMBER OF PEOPLE WHO DRIVE TO WORK OR FACE FINES AND POSSIBLE CRIMINAL PENALTIES THE LAW WILL AFFECT COMPANIES EMPLOYING MORE THAN 100 WORKERS AND IN TEXAS IT WILL HAVE THE BIGGEST IMPACT IN THE HOUSTONGALVESTON AREA BUT WEANING DRIVERS FROM THEIR CARS WON'T BE EASY BY 1996 EMPLOYERS AROUND HERE MUST MAKE SURE THAT FOR EVERY THREE PEOPLE COMING TO WORK ONE DOESN'T DRIVE HIS OR HER OWN CAR MOST COMPANIES DON'T COME CLOSE TO MEETING THAT GOAL AN IRONIC EXCEPTION PENNZOIL THE BIGGEST SELLER OF MOTOR OIL IN THE US HARRY MITCHELL PENNZOIL'S VICE PRESIDENT OF HUMAN RESOURCES SAYS THAT 79 OF THE 1500 EMPLOYEES WHO WORK IN THE COMPANY'S DOWNTOWN HEADQUARTERS ALREADY RIDE A CITY BUS TO WORK WHILE ANOTHER 8 COME IN CAR POOLS OR OTHER INDEPENDENT BUSES OR VANS WHAT HAS MADE PENNZOIL SO ENVIRONMENTALLY ENLIGHTENED A COINCIDENCE MR MITCHELL CONCEDES THE PROGRAM BEGAN AS A WAY TO ATTRACT AND RETAIN EMPLOYEES DURING THE HIGHLY COMPETITIVE EMPLOYMENT MARKET OF THE EARLY 1980S HE SAYS AS PART OF ITS EMPLOYEEBENEFITS PACKAGE PENNZOIL PROVIDES WORKERS WITH FREE MONTHLY PASSES ON CITY BUSES A SUBSIDY THAT CAN SAVE SOME WORKERS AS MUCH AS 100 A MONTH PENNZOIL PAYS UP TO 85 TOWARD BUS FARE ON INDEPENDENT LINES 55 TO VANPOOL RIDERS AND 25 OF THE MONTHLY PARKING FEE FOR CARPOOLERS WHO SHARE RIDES WITH OTHER PENNZOIL EMPLOYEES MOREOVER A COMPUTER DATABASE KEEPS TRACK OF HOW EMPLOYEES GET TO WORK AND EACH PAYCHECK REFLECTS THE PROGRAM THAT THEY ARE IN ONE SMALL CATCH AN EMPLOYEE MUST PAY INCOME TAXES ON ANY CONTRIBUTION ABOVE 60 A MONTH 9401030007 931124 TEXAS JOURNAL WHAT'S IN A NAME A LOT IF IT'S TEXAS' TO CONSUMERS STATE MEANS INDEPENDENCE FUN AND OPPORTUNITY BY KATHLEEN DEVENY STAFF REPORTER OF THE WALL STREET JOURNAL THERE ARE 48 LONE STAR STEAKHOUSES SCATTERED BETWEEN NEVADA AND DELAWARE THERE ARE EVEN TWO IN SYDNEY AUSTRALIA BUT YOU WON'T FIND A SINGLE ONE IN TEXAS IT ISN'T THAT THE LONE STAR CHAIN IS AVOIDING THE LONE STAR STATE IT IS JUST THAT THE COMPANY BASED IN WICHITA KAN IS TOO BUSY EXPLOITING THE POPULARITY OF TEXAS IMAGERY EVERYWHERE ELSE THE RESTAURANT CONCEPT WHICH FEATURES MESQUITEGRILLED STEAKS COUNTRYANDWESTERN TUNES AND TEXAS ROADHOUSE DECOR WAS CHOSEN FOR ITS MAINSTREAM APPEAL TEXAS IS A POWERFUL MARKETING TOOL SAYS JAMIE COULTER CHAIRMAN AND CHIEF EXECUTIVE OF LONE STAR STEAKHOUSE & SALOON INC ONE OF LAST YEAR'S HOTTEST INITIAL PUBLIC OFFERINGS IT'S ABOUT FRIENDLY GALS HOLIDAYS AND MEXICAN MUSIC TEXANS MAY HAVE A SOFT SPOT FOR LOCAL PRODUCTS BUT THEY ARE HARDLY ALONE IN EMBRACING THE LONE STAR STATE OF MIND THESE DAYS CONSUMERS ACROSS THE COUNTRY CHOMP ON BOB'S TEXAS STYLE POTATO CHIPS AND TEXAS CHEWIE PECAN PRALINE CANDIES THEY POUR TEXAS BEST BARBECUE SAUCE OR BEST OF TEXAS PICANTE SAUCE ON THEIR MEAT OR CHIPS THEY WASH IT DOWN WITH LONE STAR BEER OR TEXAS COLA AND THEY DO IT ALL WHILE WEARING TEX TWILL JEANS DATA GATHERED BY INFORMATION RESOURCES INC SHOW THAT MORE THAN 200 PRODUCTS WITH THE WORD TEXAS IN THE NAME HAVE MOVED ACROSS SUPERMARKET SCANNERS IN RECENT YEARS AND THAT DOESN'T INCLUDE THE SCORES OF PRODUCTS WITH LONE STAR SAN ANTONIO OR OLD EL PASO ON THEIR LABELS IN FACT A STUDY OF BRAND NAMES CONDUCTED LAST YEAR BY NEW PRODUCT NEWS FOUND THAT TEXAS RANKED NO 1 AMONG REGIONS IN THE NAMES OF NEW FOOD PRODUCTS AND THOUGH NEW PRODUCTS COME AND GO DOZENS OF TEXAS PRODUCTS ARE SIGNIFICANT BRANDS WITH ANNUAL SALES RANGING FROM 25000 TO 5 MILLION THE WORD TEXAS' SELLS SAYS WHIT PINNELL WHOSE COMPANY TEXAS GUNPOWDER INC OF MESQUITE MARKETS TEXAS GUNPOWDER A SEASONING MADE FROM GROUND JALAPENO PEPPERS SUPERMARKET SALES OF THE POTENT POWDER WHICH IS NOW AVAILABLE IN 48 STATES INCREASED 18 DURING THE 52 WEEKS ENDED JULY 18 TEXAS REMAINS THE BRAND'S BIGGEST MARKET BUT CALIFORNIA AND FLORIDA ARE ALSO STRONG YOU'D BE AMAZED AT THE NUMBER OF ORDERS WE GET OUT OF THE NORTH MR PINNELL SAYS MARKETERS ARE MORE THAN AMAZED THE TEXAS NAME IS A MARKETER'S DREAM THEY SAY PARTICULARLY FOR THOSE COMPANIES MANY OF THEM FROM TEXAS THAT CAN SHOW A CONNECTION THAT GOES BEYOND SIMPLY THE NAME BUT THE ALLURE DOES RAISE A QUESTION WHY TEXAS AND NOT SAY NORTH DAKOTA OR NEW HAMPSHIRE MARKETING GURUS SAY THE VERY WORD TEXAS EVOKES FEELINGS OF INDEPENDENCE OPPORTUNITY AND FUN ATTRIBUTES MANY COMPANIES WOULD LIKE ASSOCIATED WITH THEIR PRODUCTS THAT ALLURE IS PARTLY DUE TO THE STATE'S DRAMATIC HISTORY AS WELL AS TO THE FACT THAT MANY CONSUMERS STILL THINK OF TEXAS AS EMBODYING THE AMERICAN WEST THE STATE'S CLOSE ASSOCIATION WITH COWBOYS AN ICON NOTABLE IN MARKETING CIRCLES FOR ITS WORLDWIDE APPEAL ADDS TO ITS CACHET TEXAS CONJURES UP A VERY SPECIFIC IMAGE THAT IS DISTINCT FROM AMERICA SAYS JOHN LISTER PRESIDENT OF LISTER BUTLER INC A NEW YORK CONSULTING FIRM THAT SPECIALIZES IN BRAND IDENTITY THERE ISN'T A LARGE AMOUNT OF NEGATIVE IMAGERY ASSOCIATED WITH TEXAS THAT IMAGERY MARKETERS SAY EXTENDS BEYOND THE COUNTRY'S BORDERS FOR INSTANCE TEXAS BEVERAGE PACKERS INC BASED IN SAN ANTONIO WORRIED ABOUT THE WISDOM OF SHIPPING ITS TEXAS BRAND OF BUDGETPRICED SOFT DRINKS TO MEXICO THEY SHOULDN'T HAVE THE PRODUCT HAS TURNED OUT TO BE A HIT SOUTH OF THE BORDER WE WERE WORRIED THAT THE BRAND MIGHT HAVE NEGATIVE CONNOTATIONS FOR MEXICAN CONSUMERS SAYS STEVE HIXON GENERAL MANAGER AT TEXAS BEVERAGE PACKERS SO FAR THAT HASN'T BEEN THE CASE FOR TEXAS ENTREPRENEURS THE WIDESPREAD POPULARITY OF SOUTHWESTERN CUISINE HAS PROVED PARTICULARLY LUCRATIVE ENCOURAGING LOCAL CHEFS TO PARLAY THEIR FAVORITE RECIPES INTO SMALL BUSINESSES SOME OF THE CREDIT ALSO GOES TO THE TEXAS DEPARTMENT OF AGRICULTURE WHICH ORGANIZES A TEXAS PAVILION AT FOOD TRADE SHOWS AND MAKES INTERNATIONAL MARKETING EXPERTS AVAILABLE TO LOCAL COMPANIES BOB ROD PRESIDENT OF BOB'S TEXAS STYLE POTATO CHIPS SAYS THE STATE'S EFFORTS HAVE GIVEN LOCAL STARTUPS EXPOSURE TO RETAILERS AT TRADE SHOWS AFTER A BRIEF FORAY INTO COLORADO HE FOUND IT WASN'T ECONOMICAL TO SHIP HIS BESTSELLING JALAPENO POTATO CHIPS MORE THAN 500 MILES FROM THE PLANT WHERE THEY ARE PRODUCED BUT THE BROOKSHIRE TEXAS COMPANY NOW OPERATES AN 800 NUMBER FOR FARFLUNG FANS PEOPLE COME DOWN HERE THEY EAT THEM AND THEY READ ABOUT THE 800 NUMBER ON THE BACK OF THE BAG MR ROD SAYS THEN IN DECEMBER THEY GIVE THEM FOR GIFTS ALTHOUGH FOOD TRENDS CAN BE FLEETING CONSUMERBEHAVIOR EXPERTS SAY THE OVERALL APPEAL OF TEXAS HAS BEEN SURPRISINGLY ENDURING BY CONTRAST CALIFORNIA'S ONCEGOLDEN IMAGE HAS BEEN TARNISHED BY ECONOMIC RECESSION AND RACIAL STRIFE TEXAS MAY HAVE AVOIDED SUCH A PLIGHT PARTLY BECAUSE THE IMAGES IT INVOKES ARE MORE CLOSELY TIED TO BASIC AMERICAN VALUES IN FACT THE STATE'S APPEAL MAY ACTUALLY INCREASE AS DISILLUSIONED BABY BOOMERS SEEK SOLACE IN MORE TRADITIONAL IDEALS TEXAS HAS A TEFLON QUALITY SAYS STEVE BARNETT AN ANTHROPOLOGIST AND PRINCIPAL WITH GLOBAL BUSINESS NETWORK WHICH TRACKS CONSUMER BEHAVIOR AMERICANS WANT SOMEPLACE TO REMAIN A SYMBOL OF THEIR CORE VALUES STILL PLENTY OF PRODUCTS THAT BEAR THE TEXAS MONICKER HAVE AT BEST A TENUOUS LINK TO THE STATE'S HISTORY OR STYLE CONSIDER TEXAS INSTRUMENTS INC YES IT'S BASED IN DALLAS BUT A MARKETER WOULD BE HARD PRESSED TO SHOW A LINK BETWEEN THE COMPANY'S CALCULATORS AND A TEXAS STYLE THE COMPANY SAYS THOUGH THAT WHEN IT TESTS ITS NAME AND LOGO A TI EMBEDDED IN THE STATE'S OUTLINE CONSUMERS RESPOND FAVORABLY THE NAME AND LOGO CALL TO MIND THE COMPANY'S DALLAS HERITAGE SAYS A SPOKESMAN WE THINK WE'LL KEEP THEM FOR A WHILE ANOTHER EXAMPLE FEATHER DUSTERS MADE BY TEXAS FEATHERS INC OF ARLINGTON TEXAS WHOSE LOGO SPORTS AN OUTLINE OF THE STATE THE COMPANY STARTED OUT SELLING THE FEATHER GUIDANCE SYSTEMS AT THE END OF ARROWS BUT WHEN THE POPULARITY OF BOWS AND ARROWS WANED IN THE 1950S THE FIRM MOVED INTO FEATHER DUSTERS THE COMPANY SPECIALIZES IN OSTRICH DUSTERS THAT CAN COST UP TO 18 BUT ALSO SELLS INEXPENSIVE TURKEY DUSTERS IN SUPERMARKETS NATIONWIDE I DON'T KNOW THAT ANYBODY THINKS OF OSTRICHES WHEN THEY THINK OF TEXAS SAYS CARTER WILSON VICE PRESIDENT OF SALES AT TEXAS FEATHERS BUT HE ADDS THE NAME HELPS REINFORCE THE COMPANY'S MADEINAMERICA MESSAGE THE CONNECTION IS EVEN MORE REMOTE FOR THE TEXAS BEST LINE OF BARBECUE SAUCES THEY WERE FIRST BOTTLED IN 1977 BY A FLORIDA INVESTMENT BANKER AND ARE NOW MANUFACTURED AND DISTRIBUTED BY A SUBSIDIARY OF LANCASTER COLONY CORP OF COLUMBUS OHIO ALEN R SMITH A NATIVE OF AUSTIN STARTED MAKING THE PRODUCTS IN HIS TAMPA FLA KITCHEN THINKING HE WOULD GIVE BOTTLES TO HIS BANKING CUSTOMERS AS A GIFT BUT THE POPULARITY OF THE SAUCES QUICKLY SPREAD SUPERMARKET SALES OF THE BESTSELLING ITEM IN THE LINE TEXAS BEST ORIGINAL BARBECUE SAUCE JUMPED 70 DURING THE 52 WEEKS ENDED JULY 18 SALES AREN'T SOARING IN TEXAS THOUGH MR SMITH SAYS THE STRONGEST MARKET FOR TEXAS BEST SAUCES IS THE NORTHEASTERN STATES TEXAS IS AMONG THE WEAKEST EVERYTHING IN TEXAS SAYS TEXAS MR SMITH SAYS IT ISN'T SPECIAL THERE 9401030001 931130 REVIEW & OUTLOOK EDITORIAL THE NEW MAYORS FROM TIME TO TIME WE'VE HIGHLIGHTED REFORM MAYORS WHO ARE TRYING TO BRING A KIND OF URBAN PERESTROIKA TO THE MANAGEMENT OF THEIR CITIES THEY COME FROM ALL BACKGROUNDS AND BOTH PARTIES CLEVELAND'S MICHAEL WHITE PHILADELPHIA'S ED RENDELL MILWAUKEE'S JOHN NORQUIST AND STEPHEN GOLDSMITH OF INDIANAPOLIS ELECTIONS THIS YEAR ADDED TO THEIR RANKS IN DETROIT THE RABBLEROUSING COLEMAN YOUNG WILL BE REPLACED IN JANUARY BY DENNIS ARCHER A MODERATE FORMER JUDGE WE NEED LEADERS WHO WANT TO PICK UP TRASH NOT TALK TRASH HE SAYS LAST SUNDAY NBC'S MEET THE PRESS FEATURED RICHARD RIORDAN THE NEW MAYOR OF LOS ANGELES AND RUDY GIULIANI THE MAYORELECT OF NEW YORK CITY WHILE BOTH TOUCHED MOST OF THE BASES OF CONTEMPORARY POLITICAL CORRECTNESS ON SOCIAL ISSUES THEY MADE IT CLEAR THAT THEIR CITY BUDGETS ARE GOING ON A FISCAL VERSION OF SLIMFAST MR GUILIANI NOTED THAT ONE OUT OF SIX NEW YORK CITY WORKERS ARE ON THE GOVERNMENT'S PAYROLL BOTH HE AND MAYOR RIORDAN SAID THEY WERE LOOKING TO INJECT COMPETITION IN CITY SERVICES BY USING PRIVATE FIRMS ON EDUCATION MAYOR RIORDAN EVEN SAID HE HAD NO IDEOLOGICAL PROBLEM WITH SCHOOL VOUCHERS BUT THOUGHT THE RECENT CALIFORNIA BALLOT INITIATIVE SIMPLY WENT TOO FAR TOO FAST BUT IT'S NOT JUST THE BIG CITIES WHERE THE NEW BREED OF MAYORS WILL BE SETTING POLICY LAST MONTH VOTERS IN DAYTON OHIO POP 182000 ELECTED MIKE TURNER THE CITY'S FIRST REPUBLICAN MAYOR IN SOME 20 YEARS MR TURNER WON IN A CITY THAT IS 40 BLACK BY EMPHASIZING CRIMINAL CONTROL AND HOLDING THE LINE ON TAXES AND FEES THE MOST IMPRESSIVE REFORM VICTORY HOWEVER CAME IN RALEIGH NC A GROWING CITY OF 208000 AS A STATE CAPITAL WITH MANY GOVERNMENT EMPLOYEES RALEIGH HAS LONG BEEN A LIBERAL DEMOCRATIC STRONGHOLD NO REPUBLICAN NOT EVEN RONALD REAGAN CARRIED THE CITY UNTIL TOM FETZER WAS ELECTED MAYOR LAST MONTH MR FETZER WON 51 OF THE VOTE OVER BARLOW HERGET A CITY COUNCILMAN WHO WAS BILL CLINTON'S 1992 STATE CAMPAIGN CHAIRMAN MR FETZER A BUSINESSMAN AND FORMER STATE DEPUTY DIRECTOR OF TRANSPORTATION CALLED FOR A PROPERTY TAX CUT AND A FULLSCALE REVIEW OF CITY DEPARTMENT SPENDING HE ALSO OPPOSED A DOWNTOWN CONVENTION CENTER AS AN INDIRECT SUBSIDY TO LOCAL BUSINESS INTERESTS HE IS BEING HAILED BY THE CONSERVATIVE WEEKLY HUMAN EVENTS AS THE SOUTHERN SCHUNDLER A REFERENCE TO BRET SCHUNDLER THE JERSEY CITY NJ MAYOR WHO WON ELECTION IN A HEAVILY DEMOCRATIC CITY BY TOUTING FRESH CONSERVATIVE SOLUTIONS IN FACT MR FETZER SAYS HE BORROWED HIS IDEA FOR PUTTING MORE POLICE ON COMMUNITY PATROLS DIRECTLY FROM MR SCHUNDLER HIS NONONSENSE APPROACH TO CRIME AND TAXES WON HIM A SURPRISING 20 OF THE BLACK VOTE INSTEAD OF COMMUNICATING TO BLACK VOTERS THROUGH THEIR COMMUNITY LEADERS I TALKED DIRECTLY TO THEM IN BARBER SHOPS AND DINERS HE SAYS IN JERSEY CITY LOCAL DEMOCRATS IMPORTED JESSE JACKSON TO ACCUSE MR SCHUNDLER OF SYMPATHY WITH THE VALUES OF THE UNION OF SOUTH AFRICA SIMILARLY IN RALEIGH LOCAL DEMOCRATS TRIED TO DISCREDIT MR FETZER BY EMPHASIZING HIS TIES TO SENATOR JESSE HELMS YOU'D HAVE THOUGHT MY FIRST NAME WAS HELMS DISCIPLE JOKES MR FETZER VOTERS REJECTED THE RELENTLESSLY NEGATIVE CAMPAIGN SOMETHING'S HAPPENING TO THE POLITICS OF AMERICA'S CITIES VOTERS ARE STARTING TO THINK ABOUT WHO GOT THEM INTO THEIR CURRENT FIX AND THE NEW MAYORS THEY ELECT ARE ADOPTING POLICIES TO MAKE THEIR CITIES BUSINESSFRIENDLY AND SAFE IF ALL THIS MEANS THAT HOPE IS ALIVE IN THE INNER CITIES IT'S BECAUSE THE PEOPLE LIVING THERE ARE VOTING FOR IT SEE RELATED LETTER LETTERS TO THE EDITOR I LOST THE ELECTION DON'T BLAME OTHERS WSJ JAN 3 1994 9311300045 YY94 MM01 9312310141 931231 PAINEWEBBER TO RAISE COMMISSION RATE 3 FOR RETAIL CUSTOMERS SPECIAL TO THE WALL STREET JOURNAL NEW YORK PAINEWEBBER INC PLANS TO INCREASE THE COMMISSION RATE IT CHARGES RETAIL CUSTOMERS BY 3 BEGINNING FEB 1 SAID THE FIRM'S HEAD OF RETAIL OPERATIONS JOSEPH GRANO ANALYSTS SAID THE DECISION COULD START A TREND THE PAINEWEBBER GROUP INC UNIT IS THE FIRST MAJOR RETAIL BROKERAGE FIRM TO INCREASE ITS FEE SCHEDULE IN TWO YEARS THE LAST TIME THE NATION'S FIFTHLARGEST BROKERAGE FIRM INCREASED COMMISSIONS WAS IN 1990 MR GRANO SAID THIS COULD BE THE START OF A NEW WAVE SAID FIRST OF MICHIGAN ANALYST PERRIN LONG INSTEAD OF WAITING UNTIL BUSINESS SLOWS DOWN YOU MIGHT AS WELL RAISE COMMISSION RATES WHEN TIMES ARE BOOMING AND PEOPLE ARE MAKING MONEY IN THE MARKET IT'S NOT MUCH PEOPLE WON'T COMPLAIN ABOUT A 3 INCREASE ALTHOUGH PAINEWEBBER MIGHT LEAD THE PACK IN COMMISSION INCREASES IT IS PLAYING CATCHUP IN ANOTHER AREA THE FIRM ALSO PLANS TO INSTITUTE A TRANSFER FEE FOR RETAIL CLIENTS ELECTING TO MOVE AN ACCOUNT TO A COMPETITOR VIRTUALLY EVERY OTHER LARGE BROKERAGE HOUSE ALREADY HAS IMPLEMENTED SUCH A PLAN UNDER WHICH CLIENTS ARE CHARGED USUALLY ABOUT 50 FOR TRANSFERRING THEIR BUSINESS VIA THE AUTOMATED COMPUTER ACCOUNT TRANSFER SYSTEM MR GRANO SAID PAINEWEBBER'S TRANSFER FEE WILL HELP COVER PAPERWORK AND BACKOFFICE COSTS THE FEE REPORTEDLY WILL TAKE EFFECT MARCH 15 THE AMOUNT OF THE FEE HASN'T BEEN DECIDED MR GRANO SAID THAT SINCE THE FIRM'S LAST COMMISSION INCREASE THREE YEARS AGO THE CONSUMER PRICE INDEX HAS RISEN 11 THE RETAIL CHIEF SAID COMMISSIONS WILL INCREASE ON EQUITY AND OPTIONS TRANSACTIONS A ROUTE THE FIRM PREFERS TO CHARGING A TRANSACTION FEE BECAUSE IT ALLOWS FOR MORE LEEWAY TO GIVE DISCOUNTS TO CERTAIN CUSTOMERS WITH THE AVERAGE RETAIL TRANSACTION GENERATING ABOUT 200 IN COMMISSIONS THE NEW FEE SCHEDULE WOULD AMOUNT TO AN AVERAGE INCREASE OF ABOUT 6 9312310140 931231 CONSOLIDATED STORES SALES UP COLUMBUS OHIO CONSOLIDATED STORES CORP SAID SALES FOR THE FOUR WEEKS ENDED SATURDAY TOTALED 1628 MILLION UP 18 FROM YEAREARLIER SALES OF 1383 MILLION COMPARABLESTORE SALES INVOLVING STORES OPEN AT LEAST A YEAR INCREASED 52 FOR THE MONTH AND 29 FOR THE 11MONTH PERIOD SALES FOR THE 11 MONTHS ROSE 15 TO 9702 MILLION FROM 846 MILLION 9312310139 931231 INTERNATIONAL SWISS CONSUMER PRICE INDEX BERN SWITZERLAND SWITZERLAND'S DECEMBER CONSUMER PRICE INDEX ROSE 01 MONTHTOMONTH AND INCREASED 25 YEARTOYEAR THE GOVERNMENT ANNOUNCED FOR ALL OF 1993 INFLATION AVERAGED 33 DOWN FROM 4 IN 1992 9312310138 931231 THE UTILITY HAD THE BIG STOCKING GREENPEACE HAD THE ORNAMENTS BY TAMSIN CARLISLE STAFF REPORTER OF THE WALL STREET JOURNAL CALGARY ALBERTA A LOCAL BRANCH OF THE GREENPEACE ENVIRONMENTAL ORGANIZATION THOUGHT AN ELECTRICAL UTILITY HERE DESERVED COAL FOR CHRISTMAS AS MUCH AS 600 TONS OF THE STUFF THAT'S WHAT GREENPEACE'S CALGARY CHAPTER DUMPED ON THE DOORSTEP OF TRANSALTA UTILITIES CORP'S CALGARY HEADQUARTERS TO DRAW ATTENTION TO THE COMPANY'S ALLEGED FAILURE TO ACT TO HELP PREVENT CLIMATE CHANGE GREENPEACE AND TRANSALTA HAVE LOCKED HORNS BEFORE IT'S NO COINCIDENCE FOR INSTANCE THAT THE ENVIRONMENTAL GROUP'S RECENTLY ESTABLISHED CALGARY OFFICE IS IN A BUILDING ACROSS THE STREET FROM THE UTILITY'S OFFICE TOWER ACCORDING TO GREENPEACE'S KEVIN JARDINE TRANSALTA IS CANADA'S BIGGEST SPEWER OF CARBON DIOXIDE THE GREENHOUSE GAS MOST OFTEN BLAMED FOR GLOBAL WARMING TRANSALTA DOESN'T DISPUTE THAT IT EMITS A GREAT DEAL OF CARBON DIOXIDE INDEED A SENIOR VICE PRESIDENT OF THE COMPANY JIM LESLIE ADDS THAT TRANSALTA OPERATES THE LARGEST POINTSOURCE OF SUCH EMISSIONS IN CANADA A BIG COALFIRED POWER PLANT NEAR EDMONTON ALBERTA NEVERTHELESS THE UTILITY IS SENSITIVE ABOUT ITS CORPORATE IMAGE ITS ENVIRONMENTAL GOOD WORKS INCLUDE SUCH EVENTS AS THE ANNUAL OLD REFRIGERATOR ROUNDUP MR LESLIE SAYS IT ALSO FUNDS TREEPLANTING PROGRAMS AND IS PLANNING A PROJECT TO DEVELOP AGRICULTURAL TECHNIQUES THAT WOULD LEAVE MORE CARBON DIOXIDE IN THE SOIL HE ADDS IN EXCHANGE FOR ITS LUMPY CHRISTMAS GIFT TRANSALTA SAYS IT GAVE GREENPEACE OFFICIALS CHRISTMAS TREES OR AT LEAST EVERGREEN SEEDLINGS TO SYMBOLIZE THE COMPANY'S TREEPLANTING EFFORTS WE THINK IT'S IMPORTANT THAT ENVIRONMENTAL ISSUES ARE BROUGHT OUT INTO THE OPEN AND DISCUSSED SAYS MR LESLIE INDEED RESPONDS MR JARDINE TRANSALTA IS ALL TALK AND NO ACTION MR LESLIE CONFIRMS THAT TRANSALTA HAS NO PLANS TO CUT ITS COAL CONSUMPTION THAT WOULD JUST PUSH UP ELECTRICITY RATES FOR THE UTILITY'S CUSTOMERS HE SAYS AS FOR THE UNSCHEDULED COAL DELIVERY WHICH MR LESLIE ESTIMATES AT A MERE 300 TONS TRANSALTA SAYS IT WILL BE BURNT VERY EFFICIENTLY IN A BOILER TO GENERATE ELECTRICITY AND ALSO CARBON DIOXIDE 9312310137 931231 POLITICS & POLICY SINGLEPAYER' CONCEPT FOR HEALTHCARE PLAN IS ALIVE AND WELL DESPITE DOWNGRADING BY CLINTON BY HILARY STOUT AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON REP JIM MCDERMOTT RECENTLY SPENT AN HOUR BEFORE THE AMERICAN MEDICAL ASSOCIATION'S BOARD OF DIRECTORS PRESENTING A PROPOSAL TO SET UP A CANADIANSTYLE GOVERNMENTRUN TAXPAYERFINANCED MEDICAL SYSTEM IN THE US IN THE PAST THE VERY SUGGESTION OF SUCH A PROGRAM WOULD HAVE SENT THE AMA MOBILIZING ALL ITS RICHES INFLUENCE AND SOCIALIZED MEDICINE RHETORIC TO FIGHT IT THIS TIME THE DIRECTORS WERE POLITE IF NOT EFFUSIVE I SAID I THINK IT WOULD BE GREAT IF YOU SUPPORTED MY BILL' THERE WAS SOME LAUGHTER THE WASHINGTON DEMOCRAT RECALLS THE VERY FACT THAT THE AMA ALLOWED MR MCDERMOTT TO DARKEN THE DOORS OF ITS CHICAGO HEADQUARTERS LET ALONE THAT BOARD MEMBERS LISTENED TO AND QUESTIONED HIM IS TESTAMENT TO THE FACT THAT THE BACKERS OF SUCH A SINGLEPAYER SYSTEM ARE BEING TAKEN VERY SERIOUSLY INDEED AS AN ISSUE IN THE CURRENT CONGRESSIONAL HEALTHCARE DEBATE THE SINGLEPAYER IDEA HAS BEEN LARGELY PUSHED ASIDE BY PRESIDENT CLINTON'S HYBRID MANAGED COMPETITION PROPOSAL THE WHITE HOUSE ASSUMPTION IS THAT IN THE END SINGLEPAYER ADVOCATES WON'T VOTE AGAINST THE CLINTON PLAN WITH ITS UNIVERSAL COVERAGE AND COMPREHENSIVE BENEFIT PLAN I'M A SINGLEPAYER ADVOCATE BUT I'M A COSPONSOR OF THE CLINTON BILL BECAUSE THIS IS WHERE IT'S AT MASSACHUSETTS DEMOCRATIC REP GERRY STUDDS DECLARED LAST MONTH AT A BOSTON HEALTH FORUM BUT CONGRESSIONAL SINGLEPAYER ADVOCATES STILL CONSTITUTE A KEY BLOC IN THE POLITICAL MANEUVERING OVER THE PROPOSAL 93 HOUSE MEMBERS 92 DEMOCRATS AND ONE INDEPENDENT ARE COSPONSORING MR MCDERMOTT'S BILL WHICH WOULD ASSESS A PAYROLL TAX ON EMPLOYERS AND THEIR WORKERS DIVIDE THE MONEY AMONG THE STATES AND USE IT TO PAY MOST OF THE MEDICAL BILLS OF ALL AMERICANS VIRTUALLY ELIMINATING THE HEALTH INSURANCE INDUSTRY FIVE DEMOCRATIC SENATORS HAVE SIGNED ONTO A SIMILAR BILL WRITTEN CHIEFLY BY MINNESOTA'S PAUL WELLSTONE THE ISSUE FOR THE WHITE HOUSE IS WHETHER THE NODS IT WILL HAVE TO MAKE IN THE DIRECTION OF THE LIBERAL SINGLEPAYERS WILL COMPLICATE ITS ATTEMPT TO LURE SUPPORT FROM MORE CONSERVATIVE DEMOCRATS AND FROM REPUBLICANS FOR EXAMPLE TENNESSEE DEMOCRATIC REP JIM COOPER WHO IS PUSHING A MORE LIMITED PLAN THAN PRESIDENT CLINTON'S TOLD THE US CHAMBER OF COMMERCE RECENTLY THAT THE ADMINISTRATION ALREADY HAS GONE TOO FAR IN ITS PROPOSAL BY PERMITTING INDIVIDUAL STATES TO OPT FOR SINGLEPAYER SYSTEMS IF THEY CHOOSE WHEN IT COMES TO INFLUENCE NUMBERS ARE ONLY PART OF THE STORY FOR SINGLEPAYERS WITH LONGSTANDING INTEREST IN THE ISSUE MANY HAVE BUILT SENIORITY ON THE CONGRESSIONAL COMMITTEES THAT WILL NOW WRITE THE HEALTHCARE LEGISLATION WHATEVER THE AMA THINKS OF HIS POSITION MR MCDERMOTT WAS A WORTHY GUEST FOR THE DOCTORS' LOBBY NOT ONLY IS HE A PSYCHIATRIST HIMSELF BUT HE ALSO SITS ON THE WAYS AND MEANS HEALTH SUBCOMMITTEE AND HAS POLITICAL TIES WITH SPEAKER THOMAS FOLEY FROM HIS HOME STATE OF WASHINGTON A LONG LIST OF COMMITTEE AND SUBCOMMITTEE CHAIRMEN EDWARD KENNEDY AT SENATE LABOR AND HUMAN RESOURCES MICHIGAN'S JOHN DINGELL AND CALIFORNIA'S HENRY WAXMAN AT HOUSE ENERGY AND COMMERCE AND CALIFORNIAN FORTNEY PETE STARK AT THE WAYS AND MEANS HEALTH PANEL ARE SYMPATHETIC TOWARD SINGLEPAYERS AND WHILE SOME SUCH AS SEN KENNEDY AND REP WAXMAN WILL BE LOYAL HORSES FOR THE WHITE HOUSE THEY FEEL MUCH LESS OF A COMMITMENT TO THE CONCEPT OF MANAGED COMPETITION THE ADMINISTRATION UNDER PRESSURE FROM MR KENNEDY ALREADY HAS LOWERED THE PROPOSED COPAYMENTS OR FEES ITS PLAN WOULD HAVE CHARGED TO LOWERINCOME FAMILIES MR WAXMAN AFTER YEARS OF PROTECTING MEDICAID BENEFITS IS SENSITIVE TO ANY LIMITATIONS ON THE PROMISED BASIC BENEFIT PACKAGE FOR THE POOR WHITE HOUSE STRATEGISTS HOPING TO KEEP THEMSELVES FROM BEING PULLED APART BY CONFLICTING PRESSURES FROM LEFT AND RIGHT BELIEVE THEY CAN BUILD DIFFERENT COALITIONS AROUND SEPARATE PARTS OF THEIR HEALTH BILL THE THEORY IS THAT THEY CAN BOW TO THE MODERATE REPUBLICANS IN ONE AREA SUCH AS THE STRUCTURE AND SIZE OF THE REGIONAL HEALTHINSURANCE BUYING POOLS THE PRESIDENT IS PROPOSING TO SET UP WITHOUT ALIENATING SINGLEPAYER ADVOCATES AND THEN BEND TO THE SINGLEPAYER FORCES IN OTHER AREAS OUTSIDE OF CONGRESS ADMINISTRATION OFFICIALS BELIEVE THE SINGLEPAYER GROUPS TO BE THE BESTORGANIZED OF ALL THE ORGANIZATIONS PROMOTING HEALTHCARE REFORM AND THE MOST COMMITTED MOREOVER MANY OF THEM ENCOMPASS TRADITIONALLY DEMOCRATIC CONSTITUENCIES SUCH AS LABOR UNIONS AND MINORITY GROUPS CONSEQUENTLY THE ADMINISTRATION IS TRYING TO REACH OUT TO SINGLEPAYER SUPPORTERS TO SOLIDIFY GRASSROOTS SUPPORT FOR CONCEPTS ON WHICH THE TWO CAMPS AGREE WE BELIEVE AS THE SUPPORTERS OF THE MCDERMOTT BILL DO THAT WE SHOULD GUARANTEE UNIVERSAL COVERAGE GUARANTEE A COMPREHENSIVE PACKAGE OF BENEFITS NAMED IN LAW AND THAT STATES SHOULD HAVE THE OPTION TO GO SINGLEPAYER IF THEY CHOOSE SAYS ROBERT BOORSTIN A SPOKESMAN FOR THE WHITE HOUSE HEALTH REFORM CAMPAIGN BUT SOME SUGGEST THAT THE IDEOLOGICAL FERVOR OF SOME SINGLEPAYER ADVOCATES COULD YET MAKE FOR STRANGE POLITICAL DYNAMICS THESE PEOPLE ARE SUCH TRUE BELIEVERS IN A SINGLEPAYER SYSTEM THAT THEY MIGHT BE WILLING TO SIGN ON TO A PARTIAL SOLUTION BECAUSE IT KEEPS THE WINDOW OPEN FOR THEIR SINGLEPAYER SYSTEM LATER ON SAYS REP BILL THOMAS OF CALIFORNIA THE RANKING REPUBLICAN MEMBER OF THE HOUSE WAYS AND MEANS HEALTH SUBCOMMITTEE MR THOMAS HAS INTRODUCED A BILL THAT WOULD BRING ABOUT UNIVERSAL COVERAGE MORE GRADUALLY THAN THE WHITE HOUSE WOULD AND ONLY IF ENOUGH SAVINGS HAD BEEN WRUNG FROM THE CURRENT HEALTH SYSTEM TO PAY FOR COVERAGE FOR THE UNINSURED I EXPECT TO GET SOME OF THOSE PEOPLE DOWN THE ROAD HE SAYS FOR THE MOMENT THOUGH THE SINGLEPAYER SUPPORTERS ARE PRIMARILY FIGHTING TO OUTLEVERAGE THE MODERATE REPUBLICANS LED BY SEN JOHN CHAFEE OF RHODE ISLAND AND CONSERVATIVE DEMOCRATS LED BY REP COOPER WHO ARE PUSHING THE ADMINISTRATION TO MOVE MORE TO THE RIGHT THE QUESTION BECOMES IS THE TENSION GOING TO BE BETWEEN THE PRESIDENT'S PLAN AND OTHER PLANS THAT DON'T HAVE UNIVERSAL COVERAGE OR IS THE TENSION GOING TO BE BETWEEN THE PRESIDENT'S PLAN AND THE SINGLEPAYER PLAN SAYS SEN WELLSTONE WHOSE VOICE WILL BE THE LOUDEST AT THE TABLE 9312310136 931231 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED DEC 23 ACCOUNTED FOR 10 OR AN AVERAGE 256 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 38 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 302 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 462 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 569 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR CUSTOMERS WHILE 366 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 65 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES EXECUTED MOST OF ITS PROGRAM TRADING FOR ITS OWN ACCOUNTS WHILE MORGAN STANLEY UBS SECURITIES BEAR STEARNS AND PAINEWEBBER DID MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9312310134 931231 FIRST MICHIGAN SETS ACQUISITION HOLLAND MICH FIRST MICHIGAN BANK CORP SIGNED AN AGREEMENT TO ACQUIRE OLD STATE BANK CORP A BANKING COMPANY IN FREMONT TERMS WEREN'T DISCLOSED FIRST MICHIGAN IS A BANK HOLDING COMPANY WITH 12 AFFILIATE BANKS 71 BRANCHES AND 23 BILLION IN ASSETS OLD STATE HAS 54 MILLION IN ASSETS FIRST MICHIGAN ANNOUNCED ITS INTENT TO ACQUIRE OLD STATE IN SEPTEMBER THE DEAL IS SUBJECT TO REGULATOR APPROVAL 9312310133 931231 PRUDENTIAL UNIT STRIPS SCHECHTER OF LEGAL DUTIES GENERAL COUNSEL LEAVES POST AMID WIDENING INQUIRY INTO PARTNERSHIP DEALS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A SUDDEN SHIFT PRUDENTIAL SECURITIES INC RELIEVED ITS GENERAL COUNSEL OF HIS LEGAL DUTIES AMID A WIDENING INVESTIGATION OF THE BIG BROKERAGE FIRM THE DETHRONING OF LOREN SCHECHTER WHO HAS BEEN PRUDENTIAL'S GENERAL COUNSEL SINCE 1982 STUNNED WALL STREET EXECUTIVES MR SCHECHTER IS AMONG THE FEW SENIOR PRUDENTIAL EXECUTIVES STILL AROUND FROM THE 1980S WHEN THE FIRM BECAME EMBROILED IN LIMITEDPARTNERSHIP PROBLEMS THAT IT STILL IS FIGHTING IN AN INTERNAL MEMORANDUM PRUDENTIAL SAID MR SCHECHTER WAS RELIEVED OF HIS DIRECT RESPONSIBILITIES AS GENERAL COUNSEL BECAUSE OF THE UNFORTUNATE AND UNFAIR PUBLICITY AND INNUENDO IN THE RECENT PRESS MEANWHILE THE US ATTORNEY'S OFFICE IN MANHATTAN PLANS TO SEND OUT SUBPOENAS WITHIN THE NEXT MONTH TO SEVERAL SENIOR PRUDENTIAL SECURITIES EXECUTIVES INCLUDING MR SCHECHTER AS PART OF AN INVESTIGATION OF THE BROKERAGE FIRM'S PARTNERSHIP PRACTICES PEOPLE FAMILIAR WITH THE MATTER SAY A SUBPOENA IS ONLY A REQUEST FOR INFORMATION IT DOESN'T IMPLY WRONGDOING THE MEMO SAID THE MOVE WAS REQUESTED BY MR SCHECHTER IT IS LOREN'S BELIEF THAT HIS ABILITY TO SERVE THE LEGAL AND REGULATORY NEEDS OF THE FIRM HAVE NOW BEEN PUBLICLY COMPROMISED AND THUS HIS ONGOING EFFECTIVENESS AS THE FIRM'S PRIMARY LEGAL SPOKESMAN UNDERCUT BUT PEOPLE FAMILIAR WITH THE MATTER SAY THE MOVE WAS FORCED BY HARDWICK SIMMONS PRUDENTIAL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER WHO SIGNED THE MEMO NEITHER MR SCHECHTER MR SIMMONS NOR A PRUDENTIAL SPOKESMAN COULD BE REACHED TO COMMENT ON THE MOVE MR SCHECHTER WILL GIVE UP HIS POSITION ON PRUDENTIAL SECURITIES' OPERATING COMMITTEE AND BOARD BUT HE WILL CONTINUE TO HOLD THE TITLE OF EXECUTIVE VICE PRESIDENT AND PROVIDE THE FIRM WITH SENIOR COUNSEL THE MEMO SAID A SUCCESSOR HASN'T BEEN NAMED BUT PRUDENTIAL WILL GO OUTSIDE THE COMPANY FOR MR SCHECHTER'S REPLACEMENT PEOPLE FAMILIAR WITH THE FIRM SAY THIS WILL BE DONE PARTLY TO DEFLECT POTENTIAL CRITICISM THAT THE NEW LEGAL CHIEF HAD ANYTHING TO DO WITH PRUDENTIAL'S 1980S PARTNERSHIP PROBLEMS THE PEOPLE SAY A DECISION IS EXPECTED AS SOON AS A FEW WEEKS FROM NOW I STRONGLY BELIEVE THAT LOREN HAS ACTED HONORABLY IN ALL HIS DEALINGS WITH THE LIMITEDPARTNERSHIP ISSUE AND THAT THE US ATTORNEY'S OFFICE WILL TAKE NO ACTION ONCE ALL THE FACTS BECOME CLEAR MR SIMMONS SAID IN THE MEMO I AM CONFIDENT THAT LOREN'S REPUTATION WILL EMERGE UNSCATHED ONCE THIS PAINFUL PROCESS COMES TO AN END HE SAID THE ACTION COMES AS PROSECUTORS SEEK TO EXPLORE WHAT INFORMATION MR SCHECHTER HAS ABOUT ANY WRONGDOING IN THE BROKERAGE FIRM'S LIMITEDPARTNERSHIP GROUP IN THE 1980S PROSECUTORS SPECIFICALLY ARE EXAMINING WHAT ROLE THE LEGAL DEPARTMENT WHICH MR SCHECHTER HEADED HAD IN REVIEWING AND APPROVING PROSPECTUSES SALES DOCUMENTS AND OTHER MARKETING MATERIALS INVOLVING THE PARTNERSHIPS PRUDENTIAL SALES DOCUMENTS URGED BROKERS TO STRESS HIGH RETURNS AND LOW RISK IN PEDDLING THE PARTNERSHIPS THE VALUE OF THESE DEALS HAS PLUNGED AMID WEAK REALESTATE AND ENERGY MARKETS AND TAXLAW CHANGES SO FAR MR SCHECHTER AND THE OTHER SENIOR PRUDENTIAL EXECUTIVES ARE SOCALLED SUBJECTS NOT TARGETS OF THE INVESTIGATION THE PEOPLE SAID THAT MEANS THE OFFICIALS ARE LIKELY TO BE ASKED FOR INFORMATION THAT COULD IMPLICATE FORMER COLLEAGUES IN THE PARTNERSHIP GROUP AT THE SAME TIME PROSECUTORS APPARENTLY ARE PAYING LITTLE HEED TO AN INTERNAL PRUDENTIAL INQUIRY THAT CLEARED MR SCHECHTER OF ANY WRONGDOING THE PEOPLE SAID PRUDENTIAL SAID THE INQUIRY CONDUCTED TWO YEARS AGO CONCLUDED THAT MR SCHECHTER HAD RAISED ALL THE NECESSARY RED FLAGS CONCERNING POTENTIAL PROBLEMS IN THE PARTNERSHIP UNIT MR SCHECHTER HAS SPEARHEADED PRUDENTIAL'S CONTROVERSIAL LEGAL STRATEGY OF THE PAST SEVERAL YEARS INSTEAD OF QUICKLY SETTLING BIG PARTNERSHIP CASES IN THE LATE 1980S AS RIVALS MERRILL LYNCH & CO AND DEAN WITTER REYNOLDS INC DID PRUDENTIAL DECIDED TO AGGRESSIVELY FIGHT MANY OF THEM IN ARBITRATION AND IN COURT THIS TACTIC CLEARLY HAS FAILED THE TOTAL LEGAL TAB FOR PRUDENTIAL'S SOURED PARTNERSHIPS IS ABOUT 700 MILLION OVER THE PAST FEW YEARS AND IS LIKELY TO BALLOON FURTHER ANALYSTS SAY FOR MANY YEARS MR SCHECHTER WAS A CLOSE ASSOCIATE OF GEORGE L BALL PRUDENTIAL'S FORMER CHAIRMAN AND CHIEF EXECUTIVE WHO WAS PRESSURED TO RESIGN IN 1991 BEFORE JOINING PRUDENTIAL IN 1982 MR SCHECHTER WAS SENIOR VICE PRESIDENT AND DEPUTY COUNSEL AT EF HUTTON & CO WHEN MR BALL WAS PRESIDENT DURING HIS HUTTON TENURE THE FIRM BECAME EMBROILED IN A MASSIVE CHECKKITING SCHEME IN 1985 IT PLEADED GUILTY TO 2000 FRAUD COUNTS IN THE MATTER IN THE CURRENT CRIMINAL MATTER PROSECUTORS HAVE BEEN QUESTIONING FORMER PRUDENTIAL BROKERS AND OTHERS SEEKING EVIDENCE OF WRONGDOING BY SEVERAL TOP PRUDENTIAL OFFICIALS IN SETTING UP AND SELLING PARTNERSHIPS THE CRIMINAL INVESTIGATION LAUNCHED SEVERAL MONTHS AGO HAS SO FAR CENTERED ON THE ACTIVITIES OF PRUDENTIAL'S PARTNERSHIP GROUP PARTICULARLY JAMES DARR ITS FORMER PARTNERSHIP CHIEF LAWYERS FOR MR DARR HAVE MAINTAINED THAT THEY ARE NOT AWARE OF ANY INVESTIGATION OF THEIR CLIENT THE PLANNED QUESTIONING OF MR SCHECHTER WIDENS THE SCOPE OF THE INVESTIGATION INTO PRUDENTIAL THE NATION'S FOURTHLARGEST BROKERAGE FIRM IT COMES AS FEDERAL REGULATORS SEEK TO PUT MORE PRESSURE ON THE CHIEF LEGAL OFFICERS OF BIG BROKERAGE FIRMS TO BEAR RESPONSIBILITY FOR SUPERVISING WAYWARD EMPLOYEES THE SCRUTINY OF MR SCHECHTER'S ACTIVITIES IS PARTICULARLY SENSITIVE FOR PRUDENTIAL BECAUSE HE WAS THE POINT MAN IN NEGOTIATING A MAJOR PARTNERSHIP SETTLEMENT WITH FEDERAL AND STATE REGULATORS IN OCTOBER IN THAT CASE THE SECURITIES AND EXCHANGE COMMISSION AND 49 STATE SECURITIES REGULATORS ACCUSED PRUDENTIAL OF WIDESPREAD FRAUD IN SELLING ABOUT 8 BILLION OF PARTNERSHIPS IN THE 1980S IN SETTLING THE CASE PRUDENTIAL AGREED TO PAY AT LEAST 330 MILLION INTO A RESTITUTION FUND FOR INVESTORS MANY INVESTORS HAVE COMPLAINED THAT THEY WERE MISLED ABOUT THE RISKS AND RETURNS OF THE PARTNERSHIPS IN AN INTERVIEW WEDNESDAY NIGHT MR SCHECHTER SAID I INTEND TO COOPERATE FULLY AND LOOK FORWARD TO GETTING THE OPPORTUNITY TO SIT DOWN WITH THEM AND TELL THEM WHAT I KNOW WILLIAM AHEARN A PRUDENTIAL SPOKESMAN SAID LATE WEDNESDAY WE HAVE BEEN COOPERATING WITH THE US ATTORNEY BUT FROM THE FIRM'S STANDPOINT THERE REALLY HAVEN'T BEEN ANY NEW DEVELOPMENTS PRUDENTIAL MAINTAINS THAT THE EMPLOYEES RESPONSIBLE FOR ITS 1980S PARTNERSHIP PROBLEMS HAVE LEFT THE FIRM KENNETH VIANALE AN ASSISTANT US ATTORNEY HANDLING THE CASE DECLINED TO COMMENT ON IT SEVERAL CURRENT AND FORMER TOP EXECUTIVES INCLUDING MR SCHECHTER MR BALL FRANK GIORDANO A FORMER CHIEF OF THE FIRM'S PARTNERSHIP GROUP AND NOW CHIEF COUNSEL FOR ITS MUTUALFUND OPERATIONS AND JAMES KELSO CURRENT CHIEF OF THE PARTNERSHIP GROUP HAVE BEEN ADVISED BY PROSECUTORS TO RETAIN LAWYERS IN THE MATTER THE PEOPLE SAID PROSECUTORS HAVE ASKED THAT OFFICERS GET SEPARATE COUNSEL WHICH WE ARE DOING A SENIOR PRUDENTIAL EXECUTIVE SAID HENRY PUTZELL III A LAWYER IN NEW YORK REPRESENTING MR GIORDANO DECLINED TO COMMENT AS DID ALAN LEVINE A LAWYER AT KRONISH LIEB WEINER & HELLMAN REPRESENTING MR KELSO MR BALL'S LAWYERS HAVE SAID THAT HE HAD NO KNOWLEDGE OR INVOLVEMENT IN ANY WRONGDOING IF IN FACT THERE WAS ANY CURRENTLY MR BALL IS AMONG THOSE WHO AREN'T ACTIVELY BEING INVESTIGATED PEOPLE FAMILIAR WITH THE CRIMINAL CASE SAID HOWEVER A PERSON CLOSE TO THE CASE SAID THAT THE NORM IS TO WORK FROM THE BOTTOM UP THE US ATTORNEY'S OFFICE ALREADY IS EXPLORING POSSIBLE INDICTMENTS AGAINST THE BROKERAGE FIRM AND ITS PARENT PRUDENTIAL INSURANCE CO OF AMERICA 9312310132 931231 INTERNATIONAL PROCORDIA TO BUY REST OF STAKE IN DIVISIONS OF ITALY'S MONTEDISON SPECIAL TO THE WALL STREET JOURNAL COPENHAGEN PROCORDIA AB A SWEDISH FOOD AND PHARMACEUTICAL COMPANY SAID IT IS EXERCISING AN OPTION TO BUY THE REMAINING 49 IN FARMITALIA CARLO ERBA SRL AND ERBAMONT INC FOR 38 BILLION SWEDISH KRONOR 4571 MILLION FARMITALIA AND ERBAMONT ARE PHARMACEUTICAL DIVISIONS OF ITALY'S MONTEDISON SPA MONTEDISON ITSELF IS THE MAIN OPERATING UNIT OF AGROINDUSTRIAL CONGLOMERATE FERRUZZI FINANZIARIA SPA THERE WAS NO REASON TO WAIT TO COMPLETE THE ACQUISITION SAID JAN ISOZ HEAD OF INVESTOR RELATIONS WITH PHARMACIA ADDING WE HAVE ACCOUNTED FOR THE ENTIRE DEAL IN THIS YEAR'S ACCOUNTS ALREADY ACCORDING TO A STATEMENT BY PROCORDIA IN MARCH THE TOTAL PRICE PAID FOR BUYING FARMITALIA INCLUDING USING THE OPTION TO BUY THE 49 STAKE IS 13 BILLION HOWEVER THERE ARE ALSO PROVISIONS FOR ADDITIONAL PAYMENTS TO MONTEDISON ESTIMATED AT BETWEEN 250 MILLION AND 320 MILLION FOR REVENUE GENERATED BY SALES OF A NEW ANTIINFECTION DRUG CALLED MYCOBUTIN/RIFABIUTIN THE SWEDISH COMPANY SAID ACCORDING TO MR ISOZ EXERCISING THE OPTION TO BUY THE REMAINING 49 IN FARMITALIA WILL HAVE A POSITIVE IMPACT ON TAX CHARGES FOR THE SWEDISH GROUP 9312310131 931231 MILLICOM HOLDERS CLEAR MERGER NEW YORK MILLICOM INC A TELECOMMUNICATIONS AND COMPUTER CONCERN SAID SHAREHOLDERS APPROVED AN ANNOUNCED MERGER WITH ITS INTERNATIONAL AFFILIATE MILLICOM INTERNATIONAL CELLULAR SA 9312310129 931231 ENHANCED ELECTRONICS EXPECTS TO POST PROFIT FOR FISCAL 2ND QUARTER DALLAS ENHANCED ELECTRONICS CORP A FASTGROWING CONSUMER ELECTRONICS AND COMPUTERTECHNOLOGY COMPANY SAID IT EXPECTS TO REPORT FISCAL SECONDQUARTER PROFIT OF 511000 OR SIX CENTS A SHARE ON REVENUE OF 28 MILLION IN THE YEAREARLIER QUARTER WHICH ENDED DEC 31 ENHANCED ELECTRONICS EARNED 254339 OR FOUR CENTS A SHARE ON REVENUE OF 18 MILLION THE COMPANY EXPECTS ITS RAPID GROWTH TO CONTINUE IN THE SECOND HALF OF FISCAL 1994 PAT CUSTER CHAIRMAN AND PRESIDENT SAID IN AN INTERVIEW HE PROJECTED FISCAL 1994 PROFIT OF 189 MILLION OR 25 CENTS A SHARE ON REVENUE OF 118 MILLION ENHANCED ELECTRONICS WHICH WENT PUBLIC IN 1985 STARTED TRADING ON THE NASDAQ SMALLCAP MARKET LAST MONTH THE COMPANY CHANGED ITS NAME FROM ENTERTAINMENT EQUITY CORP IN AUGUST AFTER DECIDING TO GET OUT OF THE ENTERTAINMENTPROGRAMMING BUSINESS AND TO FOCUS INSTEAD ON HIGHTECHNOLOGY PRODUCTS MR CUSTER SAID THE BULK OF ENHANCED ELECTRONIC'S FISCALYEAR REVENUE OR ABOUT 70 MILLION WILL BE GENERATED BY SOUTHWEST MEMORY INC A DISTRIBUTOR OF COMPUTER AND TELECOMMUNICATIONS CHIPS ACQUIRED EARLY IN 1993 TWO UNITS ACQUIRED IN THE FISCAL SECOND QUARTER CURTIS MATHES CORP AND ADVANCED PC PRODUCTS INC WILL BE RESPONSIBLE FOR MOST OF THE REST OF ENHANCED ELECTRONICS' REVENUE MR CUSTER SAID CURTIS MATHES WHICH MAKES AND DISTRIBUTES TELEVISIONS VIDEOCASSETTE RECORDERS STEREOS AND CONSUMERELECTRONICS COMPONENTS IS EXPECTED TO CONTRIBUTE ABOUT 25 MILLION IN REVENUE THIS FISCAL YEAR ADVANCED PC WHICH SUPPLIES LOCALAREA NETWORK EQUIPMENT TO COMPUTERSERVICE COMPANIES IS EXPECTED TO GENERATE ABOUT 20 MILLION 9312310128 931231 P&G SETS ARGENTINE PURCHASE CINCINNATI PROCTER & GAMBLE CO EXPANDING ITS PRESENCE IN LATIN AMERICA SAID IT AGREED TO ACQUIRE A UNIT OF BUNGE Y BORN SA OF BUENOS AIRES WHICH MAKES TWO TOP LIQUID DISH DETERGENT BRANDS IN ARGENTINA TERMS WEREN'T DISCLOSED P&G SAID THE UNIT COMPANIA QUIMICA SA SELLS THREE LIQUID DISH DETERGENT BRANDS IN ARGENTINA INCLUDING THE TOP TWO CIERTO AND MAGISTRAL P&G'S PRESIDENT JOHN E PEPPER SAID THE MOVE IS PART OF THE COMPANY'S PLAN TO EXPAND INTO NEW GEOGRAPHICS IN OUR CORE CATEGORIES HE ADDED THAT P&G PLANS TO MARKET DISHWASHING PRODUCTS AROUND THE WORLD INCLUDING MEXICO VENEZUELA AND COLOMBIA 9312310125 931215 WORLD TRADE TALKS NOT EVEN GENEVA OFFERS A HAVEN FROM LOBBYISTS NEGOTIATORS FIND BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA DEPUTY COMMERCE SECRETARY JEFF GARTEN IS LATE FOR HIS PLANE OUT OF HERE BUT AFTER NIGHTS OF MARATHON TRADE NEGOTIATIONS HE CAN'T MAKE A CLEAN EXIT AS HE STRIDES TOWARD HOTEL ESCALATORS THAT LEAD HIM OUT A PACK SWOOPS UPON HIM HARRY FREEMAN HEAD OF A TRADE COALITION PUSHING WORLD TRADE TALKS PUNCHES HIM LIGHTLY ON THE LEFT SIDE EXCLAIMING GREAT JOB JEFF BILL HAWLEY A CITICORP LOBBYIST TAPS MR GARTEN ON THE RIGHT IN THE MIDDLE PHYLLIS BONANNO A WARNACO INC LOBBYIST CLOSES THE CIRCLE IN SCENES MORE OUT OF WASHINGTON SUCH AMBUSHES WERE REPEATED MANY TIMES IN RECENT DAYS DURING THE WORLD TRADE TALKS GUCCI GULCH THE NICKNAME FOR THE CAPITOL HALLWAYS WHERE WELLDRESSED LOBBYISTS BUTTONHOLE LAWMAKERS HAS COME TO GENEVA AT LEAST A COUPLE HUNDRED AMERICAN LOBBYISTS HAVE BEEN TRYING TO WIELD INFLUENCE WITH TRADE NEGOTIATORS SEEKING THINGS THAT SOUND ARCANE SUCH AS LOWER TARIFFS IN JAPAN FOR PRODUCT NUMBER 740311 REFINED CATHODES BUT COULD MAKE OR BREAK THEIR COMPANIES AS IN WASHINGTON THEY WON NO POPULARITY CONTESTS HERE ONE US OFFICIAL TRIED TO AVOID THE INTERCONTINENTAL HOTEL'S LOBBY WHICH GAVE NEW MEANING TO THE TERM LOBBYIST PETER SUTHERLAND DIRECTORGENERAL OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE WAS LESS KIND TALKING ABOUT THEM THEY HAVEN'T TALKED TO ME THE ONE OR TWO THAT HAVE HAVE CONCLUDED THEIR DISCUSSIONS FAIRLY RAPIDLY HE SAYS ALLOWING HIMSELF A SLIGHT SMILE AND AS IT IS BACK HOME SOME TRANSPLANTED LOBBYISTS FOUND THEMSELVES TO BE WINNERS IN THE AGREEMENT WHILE OTHERS WERE LOSERS THE TEXTILE INDUSTRY LOST TO RETAILERS OVER PROTECTION FROM IMPORTS STEEL AND OTHER INDUSTRY LOBBYISTS BEAT MANUFACTURERS WHO DIDN'T WANT TO BROADEN INTERNATIONAL LAWS AGAINST DUMPING GOODS AT UNFAIR PRICES AND SEMICONDUCTOR LOBBYISTS KEPT CERTAIN PATENTPROTECTION MEASURES IN THE FACE OF OPPOSITION FROM PHARMACEUTICALS COMPANIES THE LOBBYISTS' MAIN VENUE WAS THE LOBBY OF THE INTERCONTINENTAL HOTEL WE MIGHT AS WELL BE ON K STREET WHICH IS HOME TO MANY WASHINGTON LOBBYISTS SAYS THOMAS ST MAXENS AN OUTSIDE TRADE CONSULTANT FOR TOY MAKER MATTEL INC LOOKING TOWARD THE GROUPS OF LOBBYISTS BY THE HOTEL'S RECEPTION DESK NEAR THE CASHIER'S COUNTER HARVEY BALE A LOBBYIST FOR THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION SWAPS INFORMATION ON PATENTPROTECTION NEGOTIATIONS WITH JACQUES GORLIN WHO REPRESENTS A GROUP OF COMPANIES WORRIED ABOUT INTELLECTUAL PROPERTY RIGHTS BEHIND THEM BOB DONNELLY REPRESENTING CONTACT LUMBER CO AND MAUREEN SMITH AN AMERICAN FOREST AND PAPER ASSOCIATION LOBBYIST HUDDLE WITH TWO COLLEAGUES WAITING FOR NEWS ABOUT TARIFF CUTS FOR WOOD AND PAPER FINANCIALSERVICES LOBBYISTS WAIT IN ANOTHER BANK OF SOFAS FOR NEWS ABOUT WHETHER NEW MARKETS WILL BE OPENED TO THEM SUSAN FLACK A SPIEGEL INC LOBBYIST GOES FOR CAPPUCINO HER MAILORDER RETAILING COMPANY IS HAPPY WITH THE RESULTS HERE A 10YEAR PHASEOUT OF TEXTILE QUOTAS THAT MAKES IT EASIER TO BUY GOODS ABROAD AND HER JOB IS BASICALLY DONE NOT EVERYTHING WAS TYPICAL OF WASHINGTON LOBBYING SOME ABANDONED THEIR 900 SUITS IN FAVOR OF CASUAL CLOTHING WHERE ARE MY GUCCIS ASKS JOHN ALBERTINE A TEXTILE LOBBYIST STANDING CRANELIKE AS HE POINTS TO ONE OF HIS WORNOUT ASICS GEL RUNNING SHOES LOOKING DOWN AT HIS KHAKI PANTS HE NOTES THEY'RE STAINED IT WASN'T THE USUAL WINING AND DINING EITHER IN GENEVA'S COBBLED OLD SECTION SATURDAY REP NORMAN MINETA D CALIF AND INTEL CORP LOBBYIST MIKE MAIBACH SHOUTED OVER THE DIN OF A BAND CELEBRATING SETE DE L'ESPLANADE AN ANNUAL FESTIVAL MARKING A BATTLE THAT SAVED THE TOWN FROM FRENCH INVADERS REP SANDER LEVIN D MICH SIPPED FROM A PLASTIC CUP OF WARMED RED WINE AT A PICNIC TABLE WITH BIGTIME TRADE LAWYERLOBBYIST ALAN WOLFF AND HIS LAW PARTNER MIKE STEIN WHO CAME TO LOBBY FOR THE TOUGHER ANTIDUMPING MEASURES SURE THE BUSINESS WAS IMPORTANT BUT MR LEVIN WAS MORE IMPRESSED BY OTHER THINGS I SMELLED THE SAUSAGE THERE 30 YARDS AWAY FEW PLACES WERE OFFLIMITS ONE HOUSE AIDE GOT A FAX SLIPPED UNDER HIS HOTEL DOOR AROUND 11 PM FRIDAY ABOUT THE 20TH FAX IN THE TWO DAYS SINCE HE'D ARRIVED FLORIDA DEMOCRATIC REP SAM GIBBONS CHAIRMAN OF THE HOUSE TRADE SUBCOMMITTEE WAS BESIEGED AS HE WALKED BY THE US CONSULATE THEY'RE IN THE HOTEL LOBBY ON THE STREET CORNER HE SAYS WE GET FAXES MESSAGES THEY'VE GOT TO GO WHERE THE ACTION IS OTHERWISE WHERE DO THEY SEND THE BILL LOBBYING CAMPS MORE OR LESS SPLIT UP ACCORDING TO HOTELS THE INTERCONTINENTAL HAD THE DUMPING CROWD WHO WANTED TO EXPAND INTERNATIONAL REGULATIONS COVERING DUMPING THE HILTON HAD A NUMBER OF PROGATT MANUFACTURERS THE TEXTILE LOBBY SET UP SHOP THERE AS WELL TO FIGURE OUT HOW TO EXTEND THE 10YEAR PHASEOUT OF QUOTAS TO 15 YEARS THE AGRICULTURE LOBBY CAMPED AT THE FORUM HOTEL A BIT AWAY FROM THE REST OF THE ACTION ON THE EDGE OF GENEVA'S REDLIGHT DISTRICT SOME VETERAN LOBBYISTS STAYED IN THE TONIER HOTELS IN THE CITY'S OLD SECTION THE INTERCONTINENTAL HOTEL RANKED OVER THE HILTON FOR A FEW REASONS FOR ONE THING THE MUCKETYMUCKS STAYED HERE SIR LEON BRITTAN THE EC'S TOP TRADE NEGOTIATOR MICKEY KANTOR THE US TRADE REPRESENTATIVE AND VISITING US LAWMAKERS PLUS THE US TRADE REPRESENTATIVE'S OFFICE HOUSED ITS CONTROL ROOMS ON THE FIFTH FLOOR INCLUDING ONE FOR COMPANIES US OFFICIALS HAD DAILY BRIEFINGS THERE FOR INDUSTRY REPRESENTATIVES THIS WEEK'S DECOROUS TERM FOR LOBBYISTS BUT MOST IMPORTANT THE INTERCONTINENTAL HAS A BIG LOBBY WITH CUSHY LEATHER SOFAS AND ARMCHAIRS WE SPEND OUR TIME WAITING DEAN DORT WASHINGTON COUNSEL AT DEERE & CO SAYS WHILE NESTLED IN A CHAIR STILL HIT BY JET LAG AND CATCHING SOME SHUTEYE IN THE NEXT ARMCHAIR IS BILL LANE WASHINGTON MANAGER OF INTERNATIONAL GOVERNMENTAL AFFAIRS AT CATERPILLAR INC HE POPS UP QUICKLY THOUGH AND PULLS OUT A COLORCODED MAP THAT SHOWS HOW MUCH OF THE WORLD WON'T HAVE ANY TARIFFS AS A RESULT OF THE TRADE TALKS IT WASN'T ALL US INTERESTS IN A HALLWAY ON THE HILTON'S SECOND FLOOR MARE ANNE RAINSVILLE OF THE QUEBEC FARMERS UNION SAYS HER GROUP IS WORRIED THE TRADE PACT WILL MEAN MORE MILK AND POULTRY IMPORTS TO HER PROVINCE ON HER FIRST FULL DAY IN GENEVA SHE CATCHES UP BY SITTING IN ON A NEWS BRIEFING BY GATT'S MR SUTHERLAND THE SCENE WAS A BIT MUCH EVEN FOR THOSE NEW TO IT YOUNG PAUL NASH ACCOMPANIED HIS DAD JOHN JOCK NASH AS HE LOBBIED FOR MILLIKEN & CO THE TEXTILECOMPANY EXECUTIVE AND HIS GRADESCHOOL SON ROLLERBLADED ALONG THE STRETCH OF LAKE GENEVA BETWEEN THE HILTON AND GATT HEADQUARTERS BUT ENOUGH WAS ENOUGH AT A RECEPTION FOR THE VISITING LAWMAKERS THE YOUNGER MR NASH IN JACKET PANTS SHIRT AND TIE LOOKED UP AT HIS FATHER AND ASKED DAD COULD WE GO NOW SEE RELATED LETTER LETTERS TO THE EDITOR GENEVA FOUGHT FOR HER LIFE IN 1602 WSJ DEC 31 1993 9312150032 YY93 MM12 9312310124 931217 POTOMAC WATCH FROM GAZA PEACE LOOKS A LOT LIKE WAR BY PAUL A GIGOT GAZA CITY SOONTOBEPALESTINE THUMP THWACK TWO ROCKS HAVE JUST BOUNCED OFF THE SHATTERPROOF WINDOWS OF OUR MINIVAN JUST A LITTLE GAZA WELCOME FOR YOU QUIPS GEN DUBI GAZIT WHO IS SUPPOSED TO BE THE LAST ISRAELI TO RUN THIS OCCUPIED PALESTINIAN TERRITORY WELCOME TO WHAT ISRAELI FOREIGN MINISTER SHIMON PERES LIKES TO CALL THE NEW MIDDLE EAST IT LOOKS A LOT LIKE THE OLD MIDDLE EAST WAR MAY BE HELL BUT HERE SO IS PEACE ONE ISRAELI OFFICIAL AN ARCHITECT OF THE HANDSHAKE WITH YASSER ARAFAT SOUNDS LIKE GEORGE BUSH WHEN HE LAMENTS THE TV AND TALK SHOWS THAT HAVE RAISED DOUBTS ABOUT THE SEPTEMBER ACCORD A LIBERAL EDITOR A DOVE FOR DECADES STANDS AT DINNER TO DECLARE THAT THIS DOESN'T FEEL LIKE PEACE WITH EGYPT THIS ISN'T SADAT THIS ISN'T A PEACE WE ARE COMFORTABLE WITH EVEN A KEY ADVISER TO PRIME MINISTER YITZHAK RABIN ADMITS THAT THE HANDSHAKE AND HOOPLA ON THE WHITE HOUSE LAWN WERE DECEPTIVE THE HONEYMOON CAME BEFORE THE MARRIAGE THE RABINARAFAT HANDSHAKE PLEASED THE WORLD BUT ONE THING IT DIDN'T DO IS CHANGE ISRAELI POLITICAL PSYCHOLOGY SUDDENLY ISRAELIS ARE HAVING TO ADAPT TO THE IDEA THAT THE SAME ARABS WHO HAVE DETESTED THEM FOR 45 YEARS CAN LIVE AS PEACEABLE NEIGHBORS IT TAKES SOME GETTING USED TO A FIRSTTIME VISITOR COMES AWAY WITH NEW RESPECT FOR THE RISKS THEY ARE TAKING SIMPLY BY TRYING THE WORST ARGUMENT FOR THIS GREAT LEAP SOMEWHERE COMES FROM MR PERES WHO LIKES TO SAY THAT STATES DON'T MATTER ANYMORE ONLY CAPITAL DOES A SIMILAR VISION IS EVIDENT AT KOOR INDUSTRIES AN ISRAELI CONGLOMERATE WHERE PRESIDENT BENNY GAON HAS HIRED A FORMER AIR FORCE GENERAL TO INVEST IN PALESTINE MR GAON SAYS HE'S EVEN SENT EMISSARIES TO OPRYLAND TO INQUIRE ABOUT BUILDING A THEME PARK AT KING SOLOMON'S MINES DAVID AND GOLIATH MEET MINNIE PEARL MORE PERSUASIVE IS THE ANALYSIS HEARD FROM ISRAELI GENERALS INCLUDING CHIEF OF STAFF EHUD BARAK ISRAEL'S COLIN POWELL IF ISRAEL CAN LOCK IN PEACE NOW WITH ITS CLOSEST ARAB NEIGHBORS THE PALESTINIANS AND SYRIA IT WILL BE BETTER ABLE TO MEET THE GRAVER FUTURE THREATS FROM A NUCLEAR IRAN OR IRAQ ISRAEL IS DOMINANT ENOUGH MILITARILY NOW TO BE ABLE TO TAKE THE RISK THEY SAY MOREOVER A VISIT TO GAZA MAKES CLEAR THAT THE MILITARY IS ACHING TO GIVE UP THE CRAZY BURDEN OF OCCUPATION COPING WITH ROCKTHROWING BOYS AND SNIPERS IS NASTY WORK ONE GENERAL IS ASKED HOW ISRAEL CAME TO RUN GAZA ANYWAY HE JOKES THAT THE OFFICER WHO TOOK THE AREA IN THE 1967 WAR NOW DOES PENANCE EVERY YOM KIPPUR THE WEST BANK WITH MORE ISRAELI SETTLERS TO PROTECT IS A TOUGHER PROBLEM BUT THE GENERALS ARE UNANIMOUS IN SAYING THAT AN AUTOMOMOUS PALESTINE POSES NO STRATEGIC THREAT TO ISRAEL SO LONG AS MR ARAFAT CAN CONTROL TERRORISM WHICH IS WHERE THE DOUBT IS CREEPING IN MR ARAFAT IS PROVING HE'S NO ANWAR SADAT FROM HIS BASE IN FARAWAY TUNIS THE TERRORIST TURNED NATIONBUILDER CAN'T SEEM TO CONTROL EVEN HIS OWN FATAH PLO FACTION HE HAS NO SWAY WITH HAMAS A FANATIC FACTION THAT IS STRONG IN GAZA AND SKILLED AT KILLING ISRAELIS THE PRICE OF UZIS IS WAY DOWN IN GAZA IMPLYING A NEW SUPPLY TO OUTFLANK THESE REJECTIONISTS MR ARAFAT IS ALREADY DEMANDING MORE FROM ISRAEL THAN HE AGREED TO IN SEPTEMBER WE'VE SHAKEN THE HAND OF A STRAW MAN LAMENTS THE LIBERAL ISRAELI EDITOR THE ARAFAT EMBRACE ALSO FORCES ISRAEL TO CONFRONT A MORAL PARADOX ON THE ONE HAND IT PRIDES ITSELF AS THE REGION'S SOLE DEMOCRACY YET IN ORDER TO ENSURE ORDER AND STOP TERRORISM IN PALESTINE IT WILL WINK IF MR ARAFAT RESORTS TO THE BRUTAL METHODS OF THE TYPICAL ARAB DICTATOR MR RABIN HAS SAID ALMOST CHEERFULLY THAT UNLIKE US THE PLO IS NOT CONSTRAINED BY THE SUPREME COURT OR HUMAN RIGHTS ORGANIZATIONS BUT A GOVERNMENT THAT MAKES WAR AT HOME DOESN'T USUALLY BECOME MISS MANNERS ABROAD THE HOPE THEREFORE IS THAT THERE ARE ENOUGH NEW PALESTINIANS HERE WHO CAN IMPOSE A MODERATE POLITICAL CULTURE ON MR ARAFAT PALESTINE WOULD THEN BECOME A PEACEABLE JORDAN NOT A DICTATORIAL SYRIA ONE HOPEFUL SIGN IS THAT THE IMPRESSIVE HANAN ASHRAWI THE FACE OF PALESTINE ON CNN HAS QUIT POLITICS TO BECOME A HUMANRIGHTS WATCHDOG THEN THERE ARE THE FIVE YOUNG FATAH LEADERS ALL VETERANS OF ISRAELI PRISONS WHO COME FOR LUNCH IN GAZA DO THEY PLAN TO IMITATE ANY CURRENT ARAB STATE DEFINITELY NOT ONE SAYS THEY TALK A GOOD LINE ABOUT DEMOCRACY AND THE RULE OF LAW BUT THAT SAME DAY IN GAZA A SUICIDE DRIVER TRIES TO RAM AN ISRAELI TRUCK WITH A FLAMING CAR AFTER LUNCH SOMEONE WONDERS HOW MANY OF THE FIVE WILL STILL BE ALIVE IN A YEAR JUGGLING ALL OF THIS IS MR RABIN THE ONE MAN IN ISRAEL WHO CAN SELL THE TURMOIL OF PEACE TO ISRAELIS A FORMER WAR HERO HE IS NOT SUSPECTED OF FLIGHTS OF FANCY HE IS ALSO LUCKY THE OPPOSITION IS DIVIDED LIKUD LEADER BENJAMIN NETANYAHU IS MORE POPULAR IN NEW YORK THAN IN TEL AVIV WHILE ARIEL SHARON WHO THINKS THE REAL PALESTINIAN STATE IS JORDAN WAITS TO BECOME PRIME MINISTER IF THE RABINARAFAT PEACE COLLAPSES SO MR RABIN WILL PRESS AHEAD DESPITE PUBLIC JITTERS AND AFTER 45 YEARS OF WAR AMERICANS WHO WISH ISRAEL WELL OWE HIM SOME DEFERENCE FOR TRYING SEE RELATED LETTER LETTERS TO THE EDITOR WEST BANK GAZA STRIP ARE NOT PALESTINE' WSJ DEC 31 1993 9312170053 YY93 MM12 9312310123 931231 FRENCH JOBLESS RATE IS STEADY PARIS FRANCE'S UNEMPLOYMENT RATE IN NOVEMBER REMAINED AT 12 OF THE LABOR FORCE UNCHANGED FROM OCTOBER A TOTAL OF 3285700 FRENCH CITIZENS WERE REGISTERED WITH THE GOVERNMENT EMPLOYMENT AGENCY ACCORDING TO SEASONALLY ADJUSTED FIGURES FROM THE LABOR MINISTRY 9312310122 931231 SHOPPING LESSONS AS DISCOUNTING RISES IN JAPAN PEOPLE LEARN TO HUNT FOR BARGAINS GIANT DEPARTMENT STORES LITTLE SHOPS ARE HURT BUT US FIRMS BENEFIT MIDDLEMEN ARE UNDER FIRE BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THESE DAYS YUTAKA KIGAWA WATCHES WHERE HE SHOPS EVERYWHERE THE 34YEAROLD SCHOOLTEACHER LOOKS PRODUCTS SUDDENLY HAVE DIFFERENT PRICES A CAN OF COORS FOR EXAMPLE COSTS 240 YEN IN HIS NEIGHBORHOOD LIQUOR STORE 178 YEN IN A SUPERMARKET DOWN THE ROAD AND 139 YEN IN A DISCOUNT STORE THAT IMPORTS THE BEER ITSELF MR KIGAWA CAN HARDLY BELIEVE SUCH PRICE DISPARITIES I DIDN'T THINK THIS WAS POSSIBLE HE SAYS AMERICANS ARE USED TO SHOPPING AROUND FOR THE BEST PRICE BUT JAPANESE AREN'T JAPAN'S RETAIL SYSTEM HAS LONG SYMBOLIZED THE COUNTRY'S STABILITY AS WELL AS ITS PROTECTIONISM LARGELY CLOSED TO NEWCOMERS RETAILING HERE WAS DOMINATED BY TWO KINDS OF STORES GIANT DEPARTMENT STORES AND SMALL NEIGHBORHOOD SHOPS BOTH WERE KEPT ALIVE BY A COMPLEX DISTRIBUTION SYSTEM BLOATED BY LAYERS OF MIDDLEMEN AND BACKED UP BY MANUFACTURERS WHOSE SUGGESTED RETAIL PRICES WERE GOSPEL NOW BIG CRACKS ARE EMERGING IN THIS SYSTEM AND THUS BIG CHANGES IN THE COUNTRY JAPAN'S ECONOMIC DOWNTURN HAS PUSHED RETAIL SALES INTO THEIR LONGEST DEEPEST PLUNGE SINCE WORLD WAR II THE GOVERNMENT IS CAMPAIGNING FOR DEREGULATION AND FOR BREAKING DOWN THE CLUBBY DISTRIBUTION SYSTEM MERCHANTS ARE FACING A NEW WORLD OF INTENSE COMPETITION WITH EFFICIENT NEW RETAILERS CHALLENGING THE OLD DEPARTMENT STORES SPECIALTY DISCOUNTERS SPROUTING UP EVERYWHERE AND ENTREPRENEURS SLASHING PRICES BY AVOIDING THE DISTRIBUTION SYSTEM ALTOGETHER AS JAPANESE CONSUMERS DISCOVER ALL SORTS OF PRICES FOR ALL SORTS OF PRODUCTS THE RESULT IS A REVOLUTION SAYS TAKAYUKI SUZUKI AN ANALYST AT MERRILL LYNCH JAPAN INC THE CHANGES IN RETAILING HINT OF WHAT IS AHEAD FOR MUCH OF JAPANESE SOCIETY CORPORATE GIANTS THAT LED JAPAN'S ECONOMIC GROWTH IN FIELDS AS DIVERSE AS STEELMAKING AND BANKING ARE UNDER PRESSURE TO ABANDON THEIR CONSENSUSBUILDING MANAGEMENT STYLES AS NIMBLER UPSTARTS BEGIN TO LURE AWAY CUSTOMERS AND SQUEEZE THE COMPANIES' PROFIT MARGINS THE LEGEND THAT THE BIG GUYS WERE THE STRONG GUYS IS COLLAPSING IN SOCIETY POLITICS AND BUSINESS SAYS MITSUO WADA A PROFESSOR OF MARKETING AT KEIO UNIVERSITY WHAT'S COMING IS THE AGE OF SPECIALIZATION AS SPECIALTY STORES GRAB MARKET SHARE FROM DEPARTMENT STORES THE LATTER MAY WELL HAVE TO ABANDON THEIR POLICY OF SELLING EVERYTHING AND INSTEAD CONCENTRATE ON PROFITABLE AREAS MR WADA ADDS ONCE THE SYSTEM STARTS CRACKING NOTHING WILL PATCH IT UP HE PREDICTS STRUGGLING TO BECOME MORE COMPETITIVE SOME JAPANESE RETAILERS ARE LOOKING ABROAD FOR IDEAS ON EFFICIENT MANAGEMENT AND ARE EXPERIMENTING WITH WHOLESALE CLUBS AND FACTORY OUTLETS ANALYSTS SAY SOME OF JAPAN'S RETAILERS ARE 30 YEARS BEHIND AMERICAN COUNTERPARTS A LAG THAT CREATES OPENINGS FOR FOREIGNERS WHO LONG DISMISSED JAPAN AS TOO CLOSED TOO COMPLEX OR SIMPLY TOO EXPENSIVE THE STRONG YEN WHICH REDUCES PRICES OF IMPORTS IS ALSO MAKING FOREIGN RETAILERS MORE COMPETITIVE I CAN'T THINK OF AN AREA WHERE THERE ISN'T AN OPPORTUNITY SAYS WALT SHILL A PARTNER IN MCKINSEY & CO'S TOKYO CONSULTING UNIT JAPAN STILL DOESN'T HAVE MANY TYPES OF STORES SUCH AS DISCOUNTERS FOR OFFICE STATIONERY AND HOUSEHOLD GOODS NOW THE GOVERNMENT AFTER MUCH NUDGING BY US TRADE NEGOTIATORS IS EASING ITS RULES ON OPENING NEW STORES AND THE AMERICANS ARE COMING TOYS R US INC HAS OPENED 16 DISCOUNT TOY STORES IN JAPAN IT WON'T DISCLOSE THEIR SALES BUT ITS STORES HAVE BEEN SO POPULAR THAT NEARBY DEPARTMENT STORES ARE FEELING THREATENED AND ARE UPSET EARLIER THIS MONTH A FEW DEPARTMENT STORES IN OSAKA AND TOKYO STARTED DISCOUNTING TOY PRICES FOR THE FIRST TIME BY AS MUCH AS 30 FAR SMALLER US COMPANIES ARE TRYING THE JAPANESE MARKET TOO TWO MONTHS AGO HARRY ROTHMAN'S INC A DISCOUNT CLOTHIER BASED IN NEW YORK OPENED A SPACIOUS BOUTIQUE ON A SIDE STREET OF YOKOHAMA AND FILLED IT WITH RALPH LAUREN SUITS AND SKIRTS ROTHMAN'S PLANS TO OPEN FIVE MORE BOUTIQUES NEXT YEAR AND TO SUPPLY GOODS TO JAPANESE RETAILERS STORES SUCH AS ROTHMAN'S WHICH BUYS ITS MERCHANDISE DIRECTLY FROM APPAREL MAKERS AT REDUCED PRICES DON'T EXIST IN JAPAN WHERE MANUFACTURERS UNLOAD LEFTOVERS AND MAINTAIN HIGH PRICES BY QUIETLY HOLDING WAREHOUSE BARGAIN SALES FOR EMPLOYEES AND THEIR FAMILIES AND FRIENDS THE US COMPANY HOPES TO SELL ITS EXCESS INVENTORIES IN JAPAN AT HALF THE PRICES OF LOCAL DEPARTMENT STORES WHILE STILL CHARGING FAR MORE THAN ITS US RETAIL PRICES THIS IS GOING TO MAKE QUITE A STIR IN JAPAN'S RETAIL SCENE CHORTLES TOYOAKI OBA WHO HEADS ROTHMAN'S JAPANESE OPERATION AS LONG AS JAPANESE COMPANIES CONTINUE CHARGING THESE RIDICULOUS PRICES IT'S POSSIBLE FOR OTHER AMERICAN COMPANIES TO SUCCEED TOO HE SAYS ROTHMAN'S HOPES THAT SALES OF ITS JAPANESE UNIT WILL TOTAL A CUMULATIVE 5 MILLION BY THE END OF MARCH 1995 THE MAVERICK RETAILERS ARE STILL SMALL MAINLY SPECIALTY DISCOUNTERS THEY ACCOUNT FOR ONLY ABOUT 3 OF JAPAN'S RETAIL SALES COMPARED WITH 14 FOR ALL SPECIALTY DISCOUNTERS IN THE US BUT THEY ARE GAINING NATIONWIDE ATTENTION FOR DEMONSTRATING HOW A BIT OF CREATIVITY AND A SIMPLER DISTRIBUTION SYSTEM CAN PROMPT DRAMATICALLY LOWER PRICES AND THEY CERTAINLY AREN'T KNOWN FOR MODESTY I'M STARTING A REVOLUTION TO LOWER PRICES IN JAPAN SAYS GORO AOYAMA OWNER OF A 520UNIT CHAIN OF MEN'S SUIT SHOPS OUR BIGGEST ENEMY IS MIDDLE MARGINS PROFITS TACKED ON BY MIDDLEMEN SUCH AS STITCHING AND DESIGN FIRMS AND DEPARTMENT STORES HAVE THE MOST OF THEM HE PUBLICLY ATTACKS DEPARTMENT STORES DAY IN DAY OUT AFTER YEARS OF QUIETLY SELLING CHEAP SUITS AROUND ITS HOMETOWN OF FUKUYAMA IN SOUTHERN JAPAN MR AOYAMA'S AOYAMA TRADING CO OPENED A FRONTAL ASSAULT LAST YEAR BY STARTING UP A DISCOUNT SUIT STORE IN THE HEART OF GINZA WHERE TOKYO'S MOST PRESTIGIOUS DEPARTMENT STORES ARE CENTERED HE SAYS AOYAMA PLANS 80 MORE STORES IN TOKYO NEXT YEAR MR AOYAMA SAYS HE CAN SELL SUITS FOR TWOTHIRDS THE DEPARTMENTSTORE PRICE BY PURCHASING DIRECTLY FROM MANUFACTURERS AT DEPARTMENT STORES PRICES ARE LARGELY SET BY THE MANUFACTURERS WHICH OFFER GOODS ONLY ON CONSIGNMENT AND WITH AMPLE CUSHIONS AGAINST THE RISK THEY WON'T SELL THE STORES ALSO HAVE HUGE OVERHEAD COSTS SUCH AS HIGH RENTS IN TONY NEIGHBORHOODS AND BATTALIONS OF SALESWOMEN AOYAMA DOESN'T SATISFY EVERY SHOPPER'S DREAM ITS STORES ARE A JUMBLE OF RACKS FILLED WITH 30000YEN 270 SUITS SOME OF WHICH ARE MADE IN NORTH KOREA TO CUT COSTS BUT THAT DOESN'T BOTHER NEWLY PRICECONSCIOUS CONSUMERS SUCH AS YASUHIRO SATO THE 29YEAROLD OFFICE WORKER WHO CONFESSES HE FREQUENTLY SHUFFLES THROUGH LAYERS OF SHIRTS IN HIS LOCAL AOYAMA STORE SAYS HE HAS BECOME DISTRUSTFUL OF DEPARTMENT STORES WE'RE PAYING FOR MIDDLEMEN UPON MIDDLEMEN HE SAYS THIS SYSTEM HAS GOT TO CHANGE A SPOKESMAN FOR MITSUKOSHI LTD A PRESTIGIOUS DEPARTMENTSTORE CHAIN DISMISSES AOYAMA'S SUITS AS DIFFERENT BUT DEPARTMENTSTORE EXECUTIVES ARE WORRIED AOYAMA WHICH NOW CLAIMS TO SELL A QUARTER OF THE MEN'S SUITS IN JAPAN POSTED 30 GROWTH IN SALES IN THE FISCAL YEAR ENDED LAST MARCH 31 DEPARTMENT STORES SUSTAINED A 77 DROP IN MEN'S APPAREL SALES IN THE SAME PERIOD MITSUKOSHI GINGERLY HELD A BARGAIN SALE RECENTLY OFFERING MADEINJAPAN SUITS FOR 19800 YEN IT AND OTHER DEPARTMENT STORES USUALLY SELL SUITS THAT AVERAGE 70000 TO 80000 YEN IN THE 700 RANGE ALTHOUGH TOBU DEPARTMENT STORES CO SAYS ITS CHEAPEST LINE A STORE BRAND CALLED TOBU SUITS GOES FOR 48000 YEN MANY OLDLINE STORES ACKNOWLEDGE THAT TOUGH TIMES LOOM JAPAN'S RETAIL SYSTEM IS GOING THROUGH A HUGE TRANSFORMATION AND DEPARTMENT STORES ARE NO EXCEPTION SAYS ISAO KUBOKAWA MANAGING DIRECTOR OF TOBU WHICH OPERATES ASIA'S BIGGEST DEPARTMENT STORE IN THE TOKYO SHOPPING DISTRICT OF IKEBUKURO BUT RESTRUCTURING DOESN'T COME EASILY TO THE STODGY INSTITUTIONS BUYING DIRECTLY FROM MANUFACTURERS INVOLVES HIGH RISK AND IT FRIGHTENS DEPARTMENT STORES WHICH PROMOTE EMPLOYEES BY SENIORITY AND PUNISH THEM SEVERELY FOR MISTAKES WHAT'S MORE FEW DEPARTMENT STORES HAVE A CLEAR VISION OF JUST HOW THEY WANT TO CHANGE THE UPSTART RETAILERS ARE EVEN ROCKING THE MANUFACTURERS' TIGHT GRIP ON PRICING FUJIKI CO A DISCOUNT COSMETICS RETAILER RECENTLY WON A COURT CASE AGAINST SHISEIDO CO JAPAN'S BIGGEST COSMETICS MANUFACTURER WHICH REFUSED TO SUPPLY THE DISCOUNTER WITH ITS PRODUCTS SHISEIDO OFFICIALS SAY THEY ARE SHOCKED TO COME UNDER CRITICISM THE COMPANY HAS LONG SUPPLIED DEPARTMENT STORES AND ITS 25000 AFFILIATED MOMANDPOP STORES SECURE IN THE KNOWLEDGE THAT EVERYONE WOULD CHARGE SHISEIDOSET PRICES EVEN THOUGH OFFICIALLY THERE WERE NO BINDING RULES LIKE MANY OTHER MANUFACTURERS IT SIMPLY REFUSED TO DO BUSINESS WITH RETAILERS THAT DIDN'T COMPLY WITH ITS STANDARDS BUT NOW EVEN THE JAPANESE GOVERNMENT WHICH HAS LONG PROTECTED MANUFACTURERS IS SIDING WITH CONSUMERS THERE'S SO MUCH CONFUSION OUT THERE NOW SAYS SHIGEO SHIMIZU SHISEIDO'S EXECUTIVE DIRECTOR PRICES AREN'T NECESSARILY THE CONSUMERS' TOP PRIORITY HE CONTENDS BUT HE ACKNOWLEDGES THAT DISCOUNTING COSMETICS IS HERE TO STAY FOR SOME RETAILERS SUCH AS YOKO HIRANO THE CHANGES ARE WRENCHING IN HER TINY ELECTRONICS SHOP SHE DESCRIBES HOW SHE ENJOYS LOWER FOOD AND CLOTHING PRICES BUT HER FAVORITE TOFU SHOP CLOSED RECENTLY AFTER A BIG SUPERMARKET OPENED NEARBY AND HER OWN BUSINESS IS BECOMING MUCH MORE DIFFICULT WITH HER SMALL VOLUME AND HIGH RENT SHE HAS TO CHARGE MORE THAN DISCOUNTERS DO FOR SUCH PRODUCTS AS HEATERS AND TELEPHONES SHE LITERALLY HAS TO GO THE EXTRA MILE SHE PROMISES TO WALK TO THE NEAREST PHONECOMPANY OFFICE TO DO THE PAPERWORK TO GET A TELEPHONE NUMBER FOR HER CUSTOMERS LIFE IS GETTING LESS ENJOYABLE SHE FRETS BUT SUCH CHANGE SEEMS INEVITABLE AS RECESSIONHIT BOUTIQUES FOLD IN DOWNTOWN TOKYO THEY ARE QUICKLY REPLACED BY DISCOUNT DRUGSTORES EYEGLASS SHOPS AND FACTORY OUTLETS A DESERTED BOWLING ALLEY IN TOKYO'S SEEDY ENTERTAINMENT DISTRICT IS NOW WHERE SEVERAL DISCOUNTERS SELL WINE SKIS AND MOUNTAIN BIKES AT LOW PRICES SAYS TSUNEO OKUBO PRESIDENT OF A TOKYO RESEARCH INSTITUTE CALLED RETAIL SCIENCE CO ONCE THE MOVEMENT STARTS THE SPEED GETS FASTER AND FASTER 9312310121 931231 ECONOMY HOME SALES POST A GAIN OF 113 FOR NOVEMBER NEW SINGLEFAMILY UNITS HIT HIGHEST LEVEL SINCE 1986 LOW RATES CITED BY DAWN BLALOCK STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SALES OF NEW SINGLEFAMILY HOMES BOUNDED 113 IN NOVEMBER TO THEIR HIGHEST RATE SINCE APRIL 1986 THE COMMERCE DEPARTMENT SAID ANALYSTS SAID THE INCREASE INDICATES THAT LOW INTEREST RATES CONTINUE TO SPUR GROWTH IN THE HOUSING SECTOR OTHER RECENT NEWS ALSO SUGGESTS HOUSING ACTIVITY HAS PICKED UP HOUSING STARTS AND SALES OF EXISTING HOMES BOTH IMPROVED IN NOVEMBER AS WELL BUT ANALYSTS ARE SKEPTICAL THAT SUCH STRONG IMPROVEMENTS CAN CONTINUE INTO NEXT YEAR HOME SALES FELL A REVISED 22 IN OCTOBER AFTER A 154 JUMP IN SEPTEMBER THE WEST LED NOVEMBER'S SURGE WITH 273000 HOMES SOLD A 338 INCREASE FROM OCTOBER THE SOUTH AND MIDWEST SHOWED MODERATE IMPROVEMENTS THE NORTHEAST PERFORMED THE WORST HOME SALES THERE FELL 102 IN NOVEMBER DAVID SEIDERS CHIEF ECONOMIST AT THE NATIONAL ASSOCIATION OF HOME BUILDERS FOUND THE POOR SHOWING IN THE NORTHEAST WORRISOME THE NORTHEAST REGION HAS BEEN ONE OF THE WEAKEST PARTS OF THE HOUSING MARKET THE PAST COUPLE OF YEARS HE SAID NOTING THAT THERE HAS BEEN NO REAL RECOVERY IN HOUSING IN THAT AREA NATIONALLY HOMES SOLD AT A SEASONALLY ADJUSTED ANNUAL RATE OF 807000 MR SEIDERS SAID HE WAS SURPRISED THE OVERALL PACE OF SALES WAS SO BRISK WE HAD BEEN EXPECTING A GOOD SOLID NUMBER BUT NOT EXCEEDING THE 800000 RANGE HE SAID HOMESALES NUMBERS ARE VOLATILE AND OFTEN HAVE A LARGE MARGIN OF ERROR ANALYSTS YESTERDAY SAID THE HOUSING SECTOR IS IMPROVING BUT ISN'T NEARLY AS STRONG AS THE NOVEMBER FIGURES SUGGEST A SLIGHT INCREASE IN INTEREST RATES LED TO PANIC BUYING DURING THE MONTH HE ARGUED PEOPLE WANTED TO GET IN THE MARKET BEFORE RATES GOT ANY HIGHER SAID JOHN TUCCILLO CHIEF ECONOMIST AT THE NATIONAL ASSOCIATION OF REALTORS SEPARATELY THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR UNEMPLOYMENT BENEFITS PLUNGED 39000 LAST WEEK TO 291000 THEIR LOWEST LEVEL SINCE FEBRUARY 1989 ECONOMISTS SAID THE STRONG SHOWING MAY BE A BIT MISLEADING BECAUSE CLAIM OFFICES WERE CLOSED ON CHRISTMAS EVE GIVING OUTOFWORK AMERICANS FEWER DAYS TO FILE DURING THE REPORTING WEEK THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH IS A BETTER MARKER OF LABORMARKET CONDITIONS FELL TO 321500 IN THE LATEST REPORTING WEEK FROM 329250 IN THE PRECEDING WEEK ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9312310120 931231 REVIEW & OUTLOOK EDITORIAL BEACON TO THE WORLD EVERY NATION HAS ITS QUINTESSENTIAL STORY THIS IS THE NEWS STORY THAT CONFIRMS EVERYBODY ELSE'S STEREOTYPES ABOUT A PARTICULAR PLACE AND WHICH NEWSPAPER READERS LOVE TO READ FOR EXAMPLE JAPAN'S PERFECT STORY MIGHT BE OVERWORKED SALARYMAN HAS BREAKDOWN DURING MITI CALISTHENICS SESSION THE STORY THAT WOULD CONFIRM THE WORLD'S PREJUDICES ABOUT THE UNITED STATES WOULD BE SOMETHING LIKE POLITICALLY CORRECT LITIGATOR DIES IN HAIL OF BULLETS AFTER PROPOSITIONING HEALTH THERAPIST TURNED CRACK DEALER RECENTLY A FRENCH WEEKLY RAN A COVER STORY ON LIFE IN THE UNITED STATES THAT WAS NOT TOO FAR OFF THIS STANDARD THE ACCOMPANYING PHOTOGRAPHS CAPTURED THE TONE OF THE PIECE THERE WERE SEVERAL PHOTOS OF YOUNG BLACK MEN LOOTING AND RIOTING THERE WERE PHOTOS OF MIDDLE CLASS WHITES BUYING AND SHOOTING HANDGUNS THERE WAS A PHOTO OF HISPANIC GIRLS BRAWLING AS PART OF A GANG RITUAL THERE WAS A PHOTO OF A NEW AGE WORSHIPPER MEDITATING UNDER A PYRAMID IN THE EUROPEAN MEDIA THE US OFTEN LOOKS LIKE SOME NIGHTMARISH CARNIVAL A VIEW THAT IS NOT NECESSARILY CONTRADICTED BY THE COVERAGE THAT SOME OF THE AMERICAN MEDIA EXPORTS THERE ARE ESSENTIALLY TWO THEMES TO THIS SORT OF EUROPEAN COVERAGE ONE LINE OF STORIES DEPICTS A LAND IN WHICH CIVILIZATION HANGS BY A THREAD REPLETE WITH MURDER AND VIOLENCE A FEW YEARS AGO THE SUNDAY TIMES OF LONDON RAN A CAPTION UNDER THE PHOTO OF AN AMERICAN WOMAN THAT SUMMARIZES THIS GENRE TYPICAL OF MANY TEENAGERS TINA DANCER 17 HAS BEEN AN ALCOHOLIC SINCE SHE WAS ELEVEN BUT THIS THEME IS BEING REPLACED BY THE THOSE CRAZY YANKS CATEGORY SOME EUROPEAN JOURNALISTS SEEM TO HAVE BUILT LARGE PARTS OF THEIR CAREERS WRITING STORIES ABOUT OUTRAGEOUS DAMAGE AWARDS RESULTING FROM US LAWSUITS THE ABSURDITY OF POLITICAL CORRECTNESS IS SOMETHING THAT EUROPEAN COMMENTATORS OF ALMOST ALL POLITICAL STRIPES CAN AGREE ON PURSUED BY THE PURITAN FURIES WAS THE HEADLINE ON BRITISH COLUMNIST SIMON JENKINS'S MOST RECENT DESPATCH ON PC IF A FOREIGN CORRESPONDENT MEETS A LESBIAN COUPLE WITH THEIR CHILD IN A NEW YORK DINER HE WILL NOT FAIL TO WRITE ABOUT IT WHEN THE WAYNE BOBBIT CASE BROKE FOREIGN CORRESPONDENTS ACROSS THE US KNEW THEY WERE SITTING DOWN TO A HEARTY SUPPER THE BRITISH PRESS IS GIVING THE BILL CLINTON SEX ALLEGATIONS BIGGER PLAY THAN THE AMERICAN PRESS AMERICA IS SEEN WORLDWIDE AS THE PIONEER OF LOONINESS AND WE WOULD BE THE LAST TO SAY THAT THIS IMAGE IS NOT DESERVED EXPATS WHO RETURN TO AMERICAN SHORES ARE SOMETIMES STUNNED BY THE MEDIA CACAPHONY NBC NOW BROADCASTS ITS NEWS MAGAZINE PROGRAMS ACROSS EUROPE ON ITS NEWLY ACQUIRED SUPERCHANNEL AND MOST OF THE SEGMENTS SEEM TO BE ABOUT MISSING OR DEAD CHILDREN THE TONIGHT SHOW HAS COME TO EUROPE AS WELL IN THE PROMO JAY LENO LOOKS STRAIGHT INTO THE CAMERA AND WISECRACKS WE'RE GOING TO RUIN YOUR CULTURE JUST LIKE WE RUINED OUR OWN BUT THERE IS ANOTHER SIDE TO THIS IF YOU ABSTRACT FROM THE ABSURDITIES OF THIS OR THAT PARTICULAR CRAZE AMERICA LOOKS LIKE THE SITE OF A GREAT UPSURGE OF MORAL CONCERN POLITICAL CORRECTNESS FOR ALL ITS AWFULNESS IS AN EFFORT TO SAVE SOULS THROUGH LANGUAGE NEW AGE IS ALSO AN EXERCISE IN SALVATION AS ARE IN DIFFERENT WAYS THE ABORTION DEBATE THE DEBATE ON GAY ISSUES THE SEXUAL HARASSMENT DEBATE AMERICA IS A CAULDRON OF MORAL CRUSADES BOTH GOOD AND SILLY DUTCH SOCIETY HAS THE RANGE OF LIFESTYLES TO BE FOUND IN THE US FROM THE EXTREMELY CONSERVATIVE TO THE EXTREMELY WHATEVER YET FOR SOME REASON THE NETHERLANDS DOESN'T THROW OFF THE MORAL SPARKS THAT THE US DOES PERHAPS THERE IS A MORE LIBERTARIAN ATTITUDE THERE OF LIVE AND LET LIVE BUT AMERICA ASIDE FROM BEING THE MOST RELIGIOUS NATION IN THE WESTERN WORLD IS A NATION WHERE THE MOST NONRELIGIOUS PEOPLE STILL HAVE RELIGIOUS IMPULSES PEOPLE WHO ARE NOT WILLING TO MAKE THE SACRIFICES REQUIRED OF RELIGIOUS DEVOTION STILL HAVE THE HIGH MORAL ASPIRATIONS WHAT IS NEW AGE IF NOT HIGH ASPIRATION WEDDED TO EASY IMPLEMENTATION SO THERE IS SOMETHING TO BE CELEBRATED AMID ALL THE HIGH WEIRDNESS AND WITH THE IMMENSE VARIETY OF MEDIA SOURCES IN THE US IT IS CERTAIN THAT ALL THE HIGH WEIRDNESS WILL BE PUBLICIZED WE SUSPECT THAT WHEN ALL NATIONS HAVE 100 TV CHANNELS AND A RANGE OF COMPUTER NEWTORKS AND BULLETIN BOARDS A LOT OF THE REST OF THE GLOBE'S HIGH WEIRDNESS WILL EMERGE AND IT MAY BE NO BAD THING 9312310119 931231 HELEN OF TROY CORP EL PASO TEXAS HELEN OF TROY CORP SAID IT WILL ASK ITS SHAREHOLDERS TO APPROVE THE REINCORPORATION OF THE COMPANY IN BERMUDA THE WHOLESALER AND DISTRIBUTOR OF HAIRCARE APPLIANCES CITED TAX AND FINANCING ADVANTAGES FOR THE MOVE UNDER THE PROPOSAL SHAREHOLDERS OF HELEN OF TROY WOULD EXCHANGE THEIR SHARES FOR AN EQUAL NUMBER OF SHARES IN HELEN OF TROY LTD A NEWLY FORMED BERMUDA CORPORATION SHAREHOLDERS ARE TO VOTE ON THE PLAN AT A SPECIAL MEETING ON FEB 9312310118 931231 PHIBRO MAY GET OUT OF RUSSIAN OIL UNIT OVER AN EXPORT TAX BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL PHIBRO ENERGY INC'S OILPRODUCING OPERATIONS IN RUSSIA WILL HAVE TO BE SHUT DOWN IF A RUSSIAN OILEXPORT TAX ISN'T REPEALED BY THE COUNTRY'S GOVERNMENT A COMPANY OFFICIAL SAID BRIAN A LAVERS CHAIRMAN OF PHIBRO'S RUSSIAN OPERATIONS SAID THAT A GOVERNMENT DECREE THAT WOULD EXEMPT THE COMPANY'S WHITE NIGHTS VENTURE IN THE RUSSIAN REPUBLIC FROM THE TAX APPEARS TO BE BOGGED DOWN IN A REVIEW PROCESS AND THE SHARP DECLINE IN OIL PRICES NOW AT THEIR LOWEST LEVELS IN FIVE YEARS HAS FURTHER COMPLICATED AN ALREADY FINANCIALLY ONEROUS SITUATION MR LAVERS SAID PHIBRO WHICH IS BASED IN WESTPORT CONN AND IS A SUBSIDIARY OF SALOMON INC IS NOW GETTING ONLY 11 A BARREL FOR ITS RUSSIAN OIL OF THAT IT MUST PAY OUT 5 AS AN EXPORT TAX MUCH OF THE REMAINDER IS PUT BACK INTO THE BUSINESS BUT IT BARELY COVERS OPERATING COSTS MR LAVERS SAID WHITE NIGHTS WILL ULTIMATELY FAIL IF THE EXPORT TAX ISN'T REMOVED HE SAID PHIBRO AS WELL AS OTHER US COMPANIES WITH JOINT VENTURE OIL OPERATIONS IN THE RUSSIAN REPUBLIC HAVE APPEALED TO PRESIDENT CLINTON TO INTERCEDE FOR THEM WITH RUSSIAN OFFICIALS MR LAVERS SAID PHIBRO HAS INVESTED MORE THAN 100 MILLION IN THE WHITE NIGHTS VENTURE WHICH IS IN WESTERN SIBERIA IT OWNS 45 THE OPERATION IS 50 OWNED BY VARYEGANNEFTEGAZ A RUSSIAN ENTITY AND 5 OWNED BY ANGLOSUISSE LTD BASED IN HOUSTON BUT PHIBRO HAS LOANED ALL OF THE CASH NECESSARY TO GET THE VENTURE UP AND RUNNING THUS FAR NONE OF THE INTEREST OR PRINCIPAL HAS BEEN PAID BACK MR LAVERS WOULDN'T SAY HOW MUCH LONGER PHIBRO WOULD BE WILLING TO PUMP OIL IN RUSSIA IF THE EXPORT TAX ISN'T REVOKED PHIBRO IS ONLY RECEIVING 9000 BARRELS A DAY OF PRODUCTION FROM THE OPERATION IT HAD BEEN EXPECTING TO PRODUCE FAR MORE THAN THAT BY NOW FROM THE WHITE NIGHTS VENTURE AS WELL AS FROM OTHER RUSSIAN PROJECTS IT HAD PLANNED TO INVEST IN BUT RIGHT NOW WE'RE JUST CONTINUING WITH THE ONE WHITE NIGHTS VENTURE IN HOPES THE EXPORT TAX WILL BE REPEALED HE SAID BECAUSE IF WE PULL OUT WE'RE JUST WAVING GOODBYE TO OUR INVESTMENT SINCE THE EXPORT TAX WAS IMPOSED IN LATE 1991 PHIBRO HAS PAID 19 MILLION JUST TO MEET THAT TAX ALONE A GOVERNMENT DECREE IN JULY 1992 EXEMPTED ALL JOINT VENTURES IN OPERATION BEFORE JANUARY 1992 FROM THE EXPORT TAX PHIBRO IS COVERED UNDER THAT DECREE BUT A COMMITTEE SET UP TO OVERSEE THE IMPLEMENTATION OF THE EXEMPTIONS HASN'T YET GRANTED ANY THEY'VE ONLY ASKED FOR A LOT OF INFORMATION MR LAVERS SAID 9312310117 931231 WORLD ECONOMY SEEKING FREEMARKET ECONOMIC REFORM TRY A VISIONARY LEADER NEW STUDY SAYS BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SPAIN AND CHILE HAVE DONE IT BRAZIL HAS FAILED MISERABLY THE PHILIPPINES MAY SUCCEED BUT CHANCES ARE BETTER IN INDONESIA AND CHINA PROSPECTS ARE DIM IN RUSSIA AND DISMAL IN UKRAINE ACROSS MUCH OF AFRICA THERE'S NO HOPE AT ALL THE TOPIC IS FREEMARKET ECONOMIC REFORM OR MORE PRECISELY THE POLITICAL CONDITIONS NEEDED TO MAKE IT SUCCEED THE UNDERLYING ASSUMPTION IS THAT IT CAN'T BE DONE UNLESS THE POLITICS ARE RIGHT AND THAT'S LESS SELFEVIDENT THAN IT SHOULD BE IF THE RECENT RUSSIAN VOTER BACKLASH MEANS ANYTHING SUCH THOUGHTS ARE PROMPTED BY A NEW STUDY OF 13 COUNTRIES THAT TRIED FREEMARKET CHANGES WITH VARYING DEGREES OF RIGOR IN RECENT YEARS ABOUT 80 EXPERTS FROM 25 NATIONS SOUGHT POLITICAL EXPLANATIONS OF WHY SOME COUNTRIES SUCCEED WHILE OTHERS FAIL AND TRIED TO DRAW USEFUL LESSONS FOR WOULDBE REFORMERS ELSEWHERE ESPECIALLY IN DEVELOPING OR FORMER COMMUNIST NATIONS WE WANTED TO HELP THOSE WHO ARE TRYING TO MAKE THESE KINDS OF REFORMS BE CONSCIOUS OF THE POLITICAL DIMENSIONS OF WHAT HAS TO BE DONE EXPLAINS ECONOMIST JOHN WILLIAMSON WHO HAS BEEN A PROFESSOR ON THREE CONTINENTS AS WELL AS ADVISER TO THE BRITISH TREASURY AND THE INTERNATIONAL MONETARY FUND HE DIRECTED THE PROJECT FOR THE INSTITUTE FOR INTERNATIONAL ECONOMICS A THINK TANK HERE TO SOME DEGREE THE STUDY THE POLITICAL ECONOMY OF POLICY REFORM BELABORS THE OBVIOUS A TEMPORIZING DIVIDED GOVERNMENT ISN'T LIKELY TO GET ANYTHING RIGHT THE STUDY ALSO ILLUSTRATES THE CRUCIAL ROLE OF POLITICS IN SUCCESSFUL ECONOMIC MANAGEMENT AND ALONG THE WAY IT FIRES AT A FEW CURRENT MYTHS SUCH AS THE EAST ASIAN VIEW THAT ONLY AUTHORITARIANS CAN MAKE FREEMARKET REFORMS STICK WHILE THE AUTHORS FIND NO MAGIC FORMULA THEY CONTEND ECONOMISTS TOO OFTEN UNDERRATE THEIR NEED FOR SUSTAINED POLITICAL SUPPORT TO MAKE COMPLEX PLANS SUCCEED THIS IS ONE AREA WHERE THE TECHNOCRATIC APPROACH IS MOST DEFICIENT SAYS STEPHAN HAGGARD OF THE UNIVERSITY OF CALIFORNIA AT SAN DIEGO TECHNICIANS CAN GET THINGS ROLLING BUT THEY NEED TO HAVE IMPORTANT POLITICAL GROUPS ON BOARD TO MAKE IT LAST HERE ARE SOME FACTORS THE STUDY DEEMS CRUCIAL A VISIONARY LEADER MOST SUCCESS STORIES INVOLVE STRONG LEADERSHIP FROM EXECUTIVES WITH STRONG COMMITMENT A VISION OF WHERE THEY WOULD LIKE THEIR COUNTRIES TO GO EVEN IF THIS WAS NOT ALWAYS COMBINED WITH ANY CLEAR SENSE OF HOW TO GET THERE AND A WILLINGNESS TO TAKE RISKS THE DICTATORIAL AUGUSTO PINOCHET OF CHILE HAD IT BUT SO DOES THE DEMOCRATIC FELIPE GONZALEZ OF SPAIN HOWEVER THAT'S NOT TRUE OF ANY RECENT BRAZILIAN LEADER NOR OF LEONID KRAVCHUK OF UKRAINE AMONG OTHERS A COHERENT ECONOMIC TEAM BEST RESULTS COME WHEN THOSE IN CHARGE AGREE ON OBJECTIVES IF NOT DETAILS A CHIEF EXECUTIVE WHO APPOINTS POLICY RIVALS TO ENCOURAGE CONTRASTING VIEWS OR CREATIVE TENSION IS ASKING FOR TROUBLE AN INDONESIAN WEAKNESS FOR EXAMPLE IS A POLICY DISPUTE AT CABINET LEVEL THAT MIGHT YET UNDO SOME IMPRESSIVE GAINS OF THE PAST 20 YEARS A COMPREHENSIVE PROGRAM REFORMS MUST TACKLE MAJOR PROBLEMS SYSTEMATICALLY THEY NEED TO LIBERALIZE TRADE DEREGULATE FIGHT INFLATION AND WAGE OTHER TOUGH BATTLES MORE OR LESS SIMULTANEOUSLY DURING THE 1980S CHILE NEW ZEALAND AND POLAND DID SO BUT BRAZIL AND PERU DIDN'TAND FAILED A SENSE OF URGENCY ALSO CAN HELP A SOLID POLITICAL BASE EFFECTIVE REFORM DOES NEED POLITICAL SUPPORT EVEN WHEN LEGISLATURES ARE WEAK AS IN MEXICO INDONESIA AND UNTIL RECENTLY SOUTH KOREA WHEN PARLIAMENTS RESIST AS IN RUSSIA AND UKRAINE GOVERNMENTS ARE STYMIED TO WIN SUPPORT SOME IMPORTANT GROUPS MUST SEE BENEFITS BUT DON'T COMPENSATE ENTRENCHED INTERESTS THAT ARE IN FACT PART OF THE PROBLEM A PERSISTENT FILIPINO FAILING IN TACKLING A FEW MYTHS THE STUDY ARGUES THAT DEMOCRACIES CAN TAKE RADICAL ROUTES OUT OF ECONOMIC MIRE THOUGH AUTHORITARIAN REGIMES HAVE FEWER POLITICAL CONSTRAINTS SIX OF THE STUDY'S 11 SUCCESS STORIES INVOLVE DEMOCRATIC GOVERNMENTS AND A SEVENTH TURKEY BECAME ONE THE RECORD PROVIDES LITTLE EXCUSE FOR SUPPRESSING OR POSTPONING DEMOCRACY THE AUTHORS CONCLUDE NEITHER IS FOREIGN AID ALWAYS ESSENTIAL INTELLECTUAL HELP CAN BE ESSENTIAL AS IN THE TRAINING RECEIVED BY THE CHICAGO BOYS IN CHILE THE BERKELEY MAFIA IN INDONESIA MIT ECONOMISTS IN MEXICO AND HARVARD ONES IN POLAND MONEY THAT ISN'T TIED DIRECTLY TO REFORMS CAN THWART CHANGE YET RUSSIA MIGHT BE DOING BETTER IF THE WEST HAD GIVEN MORE CONDITIONAL AID EARLY TURNING REFORM TALK INTO ACTION THE STUDY SUGGESTS FAILURE IS LIKELY IF REFORMERS FIGHT AS IN RUSSIA WE'RE TRYING TO TELL OUR FELLOW ECONOMISTS THEY MUST WORK TOGETHER AS A TEAM SAYS MR WILLIAMSON THERE ARE JUST TOO MANY PRIMA DONNAS IN THIS BUSINESS 9312310116 931231 FEDERAL FARM CREDIT BANKS JERSEY CITY NJ FEDERAL FARM CREDIT BANKS FUNDING CORP SAID IT WILL REDEEM 350 MILLION OF FEDERAL FARM CREDIT BANKS CONSOLIDATED SYSTEMWIDE BONDS AND MEDIUMTERM NOTES THE CORPORATION SAID IT WILL REDEEM 185 MILLION OF 5875 CALLABLE BONDS DUE FEB 2 1998 AS WELL AS 115 MILLION OF 486 CALLABLE MEDIUMTERM NOTES DUE FEB 2 1996 AND 50 MILLION OF 4125 AND 575 STEPUP MEDIUMTERM NOTES DUE FEB 2 1996 ALL BONDS WILL BE REDEEMED AT PAR IN WHOLE AT A REDEMPTION PRICE OF 100 OF THEIR FACE VALUE AND ACCRUED INTEREST FROM AUG 2 1993 TO FEB 2 1994 WILL BE PAID 9312310115 931231 TECHNOLOGY RUSSIAN SATELLITE OFFICE WOBBLES INTO CAPITALISM BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW WHEN ISTVAN KOVACH ARRIVED HERE FROM HIS NATIVE HUNGARY IN THE LATE 1980S HE EXPECTED A VERY SHORT STAY HIS NEW EMPLOYER INTERSPUTNIK THE SOVIET SATELLITECOMMUNICATIONS ORGANIZATION APPEARED HEADED FOR A BREAKUP ALONG WITH THE REST OF THE EAST BLOC I THOUGHT I WOULD BE HERE JUST FOR ITS LAST DAYS HE CHUCKLES AS HE WEAVES HIS VOLVO THROUGH A MOSCOW TRAFFIC JAM ON HIS WAY TO WORK AS HEAD OF THE GROUP'S FINANCIAL AND LEGAL OFFICE IN FACT THE ORGANIZATION CREATED BY BREZHNEV IN 1971 AS THE EAST'S ANSWER TO THE WEST'S SUCCESSFUL INTELSAT SATELLITE CONSORTIUM HAS SOMEHOW OUTLASTED BOTH THE COLD WAR AND THE SOVIET UNION INTERSPUTNIK HAS SEEN MOST OF ITS FORMER EAST BLOC MEMBERS DIVIDE THEIR ALLEGIANCE PAYING DUES TO BOTH IT AND INTELSAT ONCE A KREMLIN FAVORITE INTERSPUTNIK NOW FINDS ITSELF AS JUST ONE OF MANY COMPETING RETAILERS OF SPACE ON RUSSIA'S FLEET OF COMMUNICATIONS SATELLITES BUT AMID THE COUNTRY'S OVERALL STATE OF DISSOLUTION AND PERIL IF ANYTHING HEIGHTENED BY THE RUSSIAN ELECTIONS EARLIER THIS MONTH INTERSPUTNIK IS AT LEAST ONE TINY BRANCH OF RUSSIAN TECHNOLOGY THAT HAS MADE IT THROUGH THE TRANSITION TO A FREE MARKET TO SURVIVE IT HAS SLASHED ITS PRICES STARTED IMPROVING ITS TECHNOLOGY AND LEARNED HOW TO PROMOTE ITSELF ABROAD ITS CUSTOMERS NOW INCLUDE SPRINT CORP AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS INC IT'S GAINING MEMBERSTATES WITH CANADA AND ISRAEL SCHEDULED TO JOIN SOON TO BE SURE IT'S A TINY ORGANIZATION WITH TWO SATELLITES TO OFFER COMPARED WITH INTELSAT'S 20 AND ANTICIPATED REVENUE THIS YEAR OF 18 MILLION UP 30 FROM 1992 BUT THREE SATELLITE LAUNCHES SCHEDULED BY RUSSIA OVER THE NEXT YEAR WILL GIVE IT NEW MORECOMPETITIVE SERVICES TO PEDDLE ANALYSTS SAY WORLD DEMAND FOR ADVANCED SATELLITE SERVICES IS UP AND THERE'S A GOOD CHANCE FOR THE RUSSIANS TO GET IN THERE WITH THEIR NEW MODELS SAYS SIMON READER SATELLITE CONSULTANT FOR CIT RESEARCH LTD A LONDONBASED MARKETRESEARCH FIRM OF COURSE INTERSPUTNIK ISN'T A TYPICAL SOVIETERA ORGANIZATION ITS PREREVOLUTIONARY OFFICE THOUGH AS SHABBY AS ANY OTHER GOVERNMENT BUILDING HERE IS DECORATED WITH UPBEAT WESTERN MARKETING POSTERS AND ENGLISHLANGUAGE SLOGANS THAT PLAY ON THE NAME FOR THE POSTSOVIET COMMONWEALTH OF INDEPENDENT STATES INTERSPUTNIK UNDERSTANDS THE CISTEM READS ONE AD SLOGAN JOIN FORCIS WITH INTERSPUTNIK PROCLAIMS ANOTHER THE STAFF IS COSMOPOLITAN HUNGARIANS RUSSIANS CUBANS EVEN A WESTERN GERMAN MARKETING DIRECTOR ON LOAN FROM DEUTSCHE BUNDESPOST TELEKOM THE STATEOWNED PHONE COMPANY BONN KEPT EAST GERMANY'S OLD INTERSPUTNIK MEMBERSHIP INTERSPUTNIK BEGAN AS A CLOSED TELECOMMUNICATIONS CLUB FOR MOSCOW'S ALLIES FROM HANOI TO HAVANA THE SATELLITES THEMSELVES AT THE MOMENT TWO GORIZANTCLASS SPACECRAFT ON GEOSTATIONARY ORBITS OVER THE INDIAN AND ATLANTIC OCEANS ARE OWNED BY RUSSIA INTERSPUTNIK JUST LEASES TRANSPONDERS OR ANTENNAS ON THEM THE SATELLITES ARE FAIRLY PRIMITIVE WITH SHORT FIVEYEAR LIVES AND A HABIT OF WOBBLING ACROSS THE SKY FOR LACK OF ANY STABILIZING GEAR WESTERN CLIENTS LIKE SPRINT COMPENSATE BY UPGRADING THEIR DISHES TO TRACK THE SATELLITES MORE CLOSELY SAYS HENRY RADZIKOWSKI SPRINT'S GENERAL MANAGER IN MOSCOW AND INTERSPUTNIK'S PRICES 10 TO 15 BELOW INTELSAT RATES APPEAL TO THE MANY JOINT VENTURES THAT HAVE SPRUNG UP IN RUSSIA TO OFFER INTERNATIONAL PHONE SERVICES TO THE WEST BUT INTERSPUTNIK'S HOPES FOR THE FUTURE LIE IN THE THREE NEW SATELLITES ON RUSSIA'S LAUNCH SCHEDULE THROUGH NEXT SEPTEMBER AT THE TOP OF THE LIST IS RUSSIA'S FIRST DIRECTBROADCASTING SATELLITE TO BEAM TELEVISION SIGNALS OVER THE INDIAN OCEAN MR KOVACH SAYS INTERSPUTNIK HAS LINED UP A CLIENT FOR IT WHOM HE DECLINES TO NAME THEN TWO NEW EXPRESSCLASS SATELLITES LONGERLIVED SPACECRAFT WITH STABILIZERS TO KEEP THEM ON TRACK ARE SCHEDULED FOR LAUNCH NEXT SPRING AND AUTUMN OVER THE ATLANTIC AND INDIAN OCEANS 9312310114 931231 REPUBLIC ENGINEERED STEELS INC CLEVELAND LTV CORP SAID REPUBLIC ENGINEERED STEELS INC REDEEMED FOR 59 MILLION ALL OF REPUBLIC'S 155 SUBORDINATED PAYINKIND DEBENTURES WHICH WERE ISSUED TO LTV IN CONNECTION WITH REPUBLIC'S 1989 PURCHASE OF AN LTV BUSINESS LTV SAID IT WILL RECORD A FOURTHQUARTER SPECIAL CREDIT OF 30 MILLION RELATED TO THE TRANSACTION UNDER AGREEMENTS WITH PENSION BENEFIT GUARANTY CORP LTV SAID IT WILL CONTRIBUTE THE 59 MILLION TO ITS PENSION PLANS BOTH LTV AND REPUBLIC ARE STEEL CONCERNS 9312310113 931231 OHIO EDISON CO PREFERRED STOCK THE STOCK WILL BE REDEEMED AT A PRICE OF 100000 A UNIT ISSUED IN 1991 EACH UNIT CONSISTS OF 1000 SHARES WITH A PAR VALUE OF 100 A SHARE DIVIDENDS ON THE SHARES TO BE REDEEMED WILL CEASE TO ACCUMULATE ON THE DATE OF REDEMPTION THE STOCK IS HELD BY DEPOSITORY TRUST CO A NOTICE OF REDEMPTION WILL BE GIVEN TO DEPOSITORY TRUST ON JAN 4 1994 AFTER WHICH NO FURTHER CLAIMS OTHER THAN THE REDEMPTION PRICE AND DIVIDENDS ACCRUED TO THE REDEMPTION DATE CAN BE MADE 9312310112 931231 MDC TO REDEEM 1125 NOTES DENVER MDC HOLDINGS INC SAID IT IS CALLING FOR REDEMPTION OF ALL OF ITS 1125 SENIOR SUBORDINATED NOTES DUE MAY 15 1996 THE AGGREGATE PRINCIPAL AMOUNT IS 518 MILLION MDC IS A HOMEBUILDING AND MORTGAGEBANKING CONCERN 9312310111 931231 ONE FOR THE ROAD HOW HARD IT IS TO GET DRINKERS OFF HIGHWAYS IS CLEAR IN NEW MEXICO THE STATE'S LAWS ARE TOUGH BUT RESOURCES ARE FINITE AND OLD HABITS DIE HARD DRIVEUP LIQUOR WINDOWS BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL ALBUQUERQUE NM IF TOUGHER LAWS ARE WINNING THE WAR AGAINST DRUNKEN DRIVERS IT IS NEWS TO POLICE OFFICER ED BURCHELL ON A CHILLY DECEMBER MORNING HE IS KILLING TIME JACKET IN HAND OUTSIDE ONE OF THIS CITY'S EIGHT BUSTLING METROPOLITAN COURTROOMS BESIEGED WITH UPWARD OF 5500 NEW DWI DRIVING WHILE INTOXICATED CASES A YEAR ROUGHLY 75 OF THEIR DOCKETS STATEWIDE THERE IS SUCH A BACKLOG THAT DWI CASES TYPICALLY TAKE FOUR TO SIX MONTHS TO BE HEARD FOR HIS OWN PART IT IS THE SIXTH CONSECUTIVE DAY OFF MR BURCHELL HAS SPENT TESTIFYING AGAINST ALLEGED DRUNKEN DRIVERS THERE ARE JUST TOO MANY OF THEM OUT THERE HE GRUMBLES NATIONWIDE THE NUMBER OF ALCOHOLRELATED TRAFFIC FATALITIES HAS FALLEN BY 30 SINCE 1982 CARS ARE SAFER MANY STATES HAVE PASSED MANDATORY SEATBELT STATUTES AND RAISED THE LEGAL DRINKING AGE TO 21 AND INTENSE STATEBYSTATE LOBBYING BY GROUPS SUCH AS MOTHERS AGAINST DRUNK DRIVERS MADD HAS TRANSFORMED THE DRUNKEN DRIVER INTO A HIGHPROFILE PUBLIC ENEMY MANY STATES AND LOCAL COMMUNITIES HAVE INSTITUTED STIFF ANTIDWI LAWS AND BOWING TO CHANGING SOCIAL MORES MOST BREWERS AND DISTILLERS HAVE LAUNCHED RESPONSIBLE USE CAMPAIGNS BUT ALCOHOLRELATED TRAFFIC ACCIDENTS STILL CLAIM NEARLY 17700 LIVES A YEAR NATIONALLY TRAFFIC ACCIDENTS IN GENERAL HAVE BEEN DECREASING OVER THE PAST FIVE YEARS BUT THE PERCENTAGE ATTRIBUTED TO ALCOHOL IMPAIRMENT CONTINUES TO HOVER AT AROUND 7 LAWENFORCEMENT OFFICIALS CONTEND THAT MANY HARDCORE DRINKERS CONTINUE TO RESIST EFFORTS TO KEEP THEM OFF THE ROAD A 1992 JUSTICE DEPARTMENT STUDY SHOWED 52 OF THE PEOPLE JAILED FOR DWI HAD PREVIOUS DRUNKENDRIVING CONVICTIONS AND 16 HAD THREE OR MORE MORE THAN HALF OF THE 5675 CONVICTED OFFENDERS SURVEYED ADMITTED TO HAVING CONSUMED THE EQUIVALENT OF ABOUT 12 BOTTLES OF BEER BEFORE THEIR ARREST AND 29 SAID THEY HAD CONSUMED THE EQUIVALENT OF 22 HOW TO GET THESE INVETERATE DRINKERS OFF THE ROAD IS UP FOR DEBATE VICTIMS' RIGHTS ADVOCATES TRADITIONAL DWI GROUPS AND THE ALCOHOLICBEVERAGE INDUSTRY FAVOR MEASURES THAT DETER AND PUNISH OVERINDULGENCE BY INDIVIDUAL DRIVERS BUT A GROWING NUMBER OF PUBLICHEALTH EXPERTS QUESTION WHETHER THE CRIMINALJUSTICE SYSTEM EVER CAN ENFORCE DWI LAWS STRICTLY ENOUGH TO DETER THE MOST PERSISTENT OFFENDERS INSTEAD THEY FAVOR A MORE INTENSE AIM AT THE DRINK INSTEAD OF THE DRINKER AND TREATMENT RATHER THAN PUNISHMENT THE DEBATE ASIDE DWI MEASURES COST MONEY WHAT WE HEAR TIME AND AGAIN IS THAT CITIES AND COUNTIES ARE BEING PRESSED TO CUT THEIR RESOURCES ALLOCATED TO DWI ENFORCEMENT AND PUT THEM INTO BASIC THINGS SUCH AS KEEPING OFFICERS ON THE STREET SAYS JOHN MOULDON A TRANSPORTATION CONSULTANT AND MADD POLICY ANALYST THE PROBLEM WE HAVE SEEN IN NEW MEXICO AND ELSEWHERE IS LACK OF RESOURCES NEW MEXICO LIKE MUCH OF THE NATION CONTINUES TO GROPE FOR AN EFFECTIVE AND AFFORDABLE BALANCE BETWEEN PUNISHMENT AND PREVENTION MADD ALREADY RATES NEW MEXICO ONE OF THE TOP 10 DWIENFORCEMENT STATES BECAUSE OF ITS TOUGH LAWS AND MORE STRICT MEASURES TAKE EFFECT TOMORROW YET NEW MEXICO CONTINUES TO SUFFER THE NATION'S HIGHEST RATE OF ALCOHOLRELATED TRAFFIC DEATHS WITH A POPULATION OF ABOUT 15 MILLION IT RECORDED 274 ALCOHOLRELATED FATALITIES IN 1992 OR 174 PER 100000 IN POPULATION COMPARED WITH 69 PER 100000 NATIONWIDE PART OF THE ENFORCEMENT PROBLEM IS ITS SHEER VOLUME IN THE SOUTHERN PART OF THE STATE THE OTERO COUNTY SHERIFF'S DEPARTMENT HAS PURCHASED SPECIAL EQUIPMENT TO SET UP ROVING DWI CHECKPOINTS BUT THE COUNTY JAIL ALREADY IS SO OVERCROWDED THAT CONVICTED DRUNKEN DRIVERS ARE BEING ISSUED NUMBERED TICKETS LIKE THOSE AT A MEAT MARKET TO WAIT THEIR TURN TO SERVE THEIR SENTENCES WE HAVE PEOPLE WHO HAVE BEEN ON THAT LIST FOR ALMOST A YEAR LAMENTS SHERIFF JOHN LEE IN ALBUQUERQUE HEAVY OVERTIME COSTS HAVE FORCED THE POLICE DEPARTMENT TO REDUCE THE SIZE OF ITS DWI SQUAD HARRIED BERNALILLO COUNTY PROSECUTORS LET REPEAT DWI SUSPECTS PLEAD GUILTY TO LESSER CHARGES AS FIRSTTIME OFFENDERS TO AVOID DOCKETJAMMING JURY TRIALS ARRESTING OFFICERS SOMETIMES ARE SCHEDULED TO TESTIFY IN SEVERAL DWI CASES IN DIFFERENT COURTROOMS SIMULTANEOUSLY CASES GET DISMISSED RIGHT AND LEFT FOR OFFICERS WHO JUST DON'T APPEAR SAYS JOANNA AGUILAR A DEPUTY DISTRICT ATTORNEY ANOTHER PART OF THE PROBLEM IS THE MOSTLY RURAL STATE'S INGRAINED CULTURE OF DRINKING AND DRIVING AS ATTORNEY GENERAL TOM UDALL NOTED IN A 1992 DWI REPORT SOME NEW MEXICANS USED TO MEASURE THE DISTANCE TO THE NEXT TOWN IN SIXPACKS AND A DRINKING PROBLEM MEANT THAT THE KEG HAD RUN OUT OF ALCOHOL BEYOND ALBUQUERQUE AND QUAINT TOURIST TOWNS LIKE TAOS AND SANTA FE NEW MEXICO IS A NETWORK OF ISOLATED MILES OF TWOLANE HIGHWAYS LINKING INDIAN RESERVATIONS AND DOZENS OF SMALL TOWNS ALCOHOLISM LONG HAS BEEN RAMPANT ON AND AROUND THE RESERVATIONS AND TO SOME DEGREE THAT SKEWS NEW MEXICO'S DWI STATISTICS BUT STATE OFFICIALS ESTIMATE THAT EVEN WHEN DATA FROM THE TWO COUNTIES WITH THE HIGHEST CONCENTRATIONS OF NATIVE AMERICANS ARE EXCLUDED NEW MEXICO ONLY DROPS FROM FIRST TO SECOND IN THE NATION BEHIND ARKANSAS IN ITS RATE OF ALCOHOLRELATED TRAFFIC DEATHS IT'S NOT JUST THE INDIANS SAYS STEVEN FLINT ACTING CHIEF OF THE STATE'S TRAFFICSAFETY BUREAU INDEED IN RECENT YEARS NEW MEXICANS HAVE SEEN A STEADY STREAM OF PROMINENT CITIZENS OF ALL BACKGROUNDS ARRESTED ON DWI CHARGES INCLUDING JUDGES PARTY LEADERS AND A FORMER STATE REPRESENTATIVE WHO CLAIMED UNSUCCESSFULLY THAT HE SUFFERED FROM A RARE DISEASE THAT CAUSED HIS BODY TO BREW ALCOHOL BEER WINE AND LIQUOR COULDN'T BE EASIER TO BUY CONVENIENCE STORES DISPENSE WHISKEY AND GIN SOME SUPERMARKETS ERECT VODKA DISPLAYS NEXT TO THE ORANGE JUICE AND BAR PATRONS USUALLY CAN GET A FIFTH OF LIQUOR TO GO FROM THE ADJOINING PACKAGE STORES BUT ESPECIALLY SYMBOLIC ARE DRIVEUP WINDOWS ATTACHED TO MORE THAN 300 LIQUOR STORES AND BARS DESPITE A DECADELONG EFFORT BY MADD AND OTHER GROUPS TO CLOSE THEM THE WINDOWS CONTINUE TO OFFER DRIVETHROUGH CUSTOMERS SIXPACKS BOTTLED LIQUOR AND CUPS OF ICE TO GO THE WINDOWS HAVE BEEN PROTECTED BY A LIQUOR LOBBY LONG INFLUENTIAL IN A STATE ECONOMY WHERE FEW OTHER INDUSTRIES COMPETE FOR POWER IN THE NEW MEXICO LEGISLATURE INDUSTRY CONTRIBUTIONS CONSTITUTE UP TO 25 OF THE CAMPAIGN BUDGETS OF PROMINENT LEGISLATIVE LEADERS AND THE RANKS OF THE LIQUOR LOBBYISTS INCLUDE EXLEGISLATORS CABINET SECRETARIES AND THE STATE'S FORMER LIQUORCONTROL DIRECTOR THE ALBUQUERQUE TRIBUNE AMID AN ANTIDWI CRUSADE RECENTLY REPORTED THAT LEGISLATION SUPPORTED BY THE LIQUOR LOBBY IS ROUGHLY FOUR TIMES MORE LIKELY THAN OTHER BILLS TO BE PASSED WHILE BILLS THAT IT OPPOSES ARE REJECTED AT 10 TIMES THE RATE OF OTHER LEGISLATION BUT ON CHRISTMAS EVE 1992 A GRISLY ACCIDENT GALVANIZED PUBLIC OPINION AGAINST THE LOBBY AND ITS SUPPORTERS A TRUCK TRAVELING THE WRONG WAY DOWN INTERSTATE 40 NEAR ALBUQUERQUE SLAMMED INTO A CAR KILLING MELANIE CRAVENS AND HER THREE YOUNG DAUGHTERS THE TRUCK'S DRIVER ALLEGEDLY DRUNK AT THE TIME WAS THE DIRECTOR OF A TREATMENT PROGRAM FOR ADOLESCENT SUBSTANCE ABUSERS HE HAS PLEADED NOT GUILTY TO FOUR COUNTS OF VEHICULAR HOMICIDE IN A STATE COURT IN ALBUQUERQUE NADINE AND ROBERT MILFORD THE DEAD WOMAN'S PARENTS HAD BEEN WAITING FOR THEIR GRANDCHILDREN TO COME OPEN CHRISTMAS PRESENTS WHEN THEY SAW A LIVE TELEVISION REPORT FROM THE SCENE AND RECOGNIZED THE FAMILY'S VEHICLE MRS MILFORD UNDERTOOK A CRUSADE APPEARING NIGHTLY ON LOCAL NEWS PROGRAMS BARGING INTO WATERING HOLES IN THE STATE CAPITAL TO CONFRONT POLITICIANS AND GATHERING THE SIGNATURES OF MORE THAN 80000 NEW MEXICANS WHO DEMANDED THAT DWI LAWS BE STRENGTHENED AS A RESULT THE LEGISLATURE PASSED A PACKAGE REDUCING THE STATE'S BLOODALCOHOL LIMIT BY 20 MAKING THE FOURTH DWI CONVICTION A FELONY AND REQUIRING COURTS TO AUTOMATE THEIR RECORDS TO BETTER TRACK REPEAT OFFENDERS BARS AND RESTAURANTS TO RENEW THEIR LIQUOR LICENSES MUST TRAIN THEIR EMPLOYEES TO RECOGNIZE THE SIGNS OF DRUNKENNESS AND CUT OFF TIPSY PATRONS AT THIS POINT IN NEW MEXICO I THINK WE HAVE SOME PRETTY GOOD LAWS IN PLACE SAYS ATTORNEY GENERAL UDALL WHO SHEPHERDED THE PACKAGE THROUGH THE LEGISLATURE BUT HE ADMITS TO BEING DISAPPOINTED AT THE LIQUOR LOBBY'S SUCCESS IN KEEPING THE DRIVEUP WINDOWS OPEN A SANTA FE COURT ADMINISTRATOR WHO DID A STUDY INDICATING THAT A HIGH PERCENTAGE OF DWI OFFENDERS BOUGHT THEIR ALCOHOL FROM DRIVEUP WINDOWS SAYS THAT SHE DISCOVERED A LOBBYIST HAD TRIED TO CAJOLE HER SECRETARY INTO RETYPING THE REPORT USING REVISED FIGURES SEVERAL BILLS THAT WOULD HAVE CLOSED THE WINDOWS NEVER MADE IT OUT OF COMMITTEE AND WHEN MR UDALL FINALLY FOUND A SENATOR WILLING TO SPONSOR HIS PROPOSAL IT WAS DEFEATED HE VOWS TO RAISE THE ISSUE AGAIN THERE WILL BE A BIG FIGHT OVER THE WINDOWS HE SAYS MEANWHILE WITH THE BULK OF THE NEW LAWS POISED TO GO INTO EFFECT AUTHORITIES ALREADY FEEL THE ONSET OF AN ENFORCEMENT MIGRAINE NEW MEXICO COMMUNITIES LONG HAVE LOBBIED FOR THE RIGHT TO RAISE LOCAL EXCISE TAXES ON ALCOHOLIC BEVERAGES TO FUND THEIR OWN ENFORCEMENT AND TREATMENT PROGRAMS BUT THE STATE LEGISLATURE VOTED DOWN SUCH BILLS DURING THE LAST SESSION THE LEGISLATURE DID RAISE THE STATEWIDE LIQUOR TAX BY ABOUT A PENNY A DRINK WHICH IS EXPECTED TO RAISE ABOUT 11 MILLION BUT DIDN'T SPECIFICALLY SET ASIDE THE PROCEEDS FOR DWI PROGRAMS INSTEAD IT ALLOCATED 15 MILLION FROM THE GENERAL FUND AND ASKED STATE AGENCIES AND LOCAL COMMUNITIES TO SUBMIT COMPETITIVE BIDS FOR A SHARE OF THE MONEY TO FUND THEIR OWN PROGRAMS BUT WITH NO GUARANTEES ON FUTURE ALLOCATIONS AND WITH REQUESTS FOR THE CURRENT ROUND OF FUNDING ALREADY TOTALING MORE THAN 40 MILLION PLANS FOR MANY OF THE PROGRAMS WILL HAVE TO BE DRASTICALLY SCALED BACK OR GO UNFUNDED MARY ANNE HUGHES DIRECTOR OF THE STATE'S ALCOHOL AND GAMING DIVISION DOESN'T YET KNOW WHETHER IT WILL BE ABLE TO HIRE ADDITIONAL STAFF TO OVERSEE THE MANDATORY SERVERTRAINING DRAFT A LIST OF REQUIREMENTS FOR THE EDUCATION PROGRAMS OR EVEN FIGURE OUT EXACTLY HOW MANY WAITRESSES AND BARTENDERS NEED TO BE CERTIFIED I USE THE ESTIMATE OF BETWEEN 20000 AND 100000 PEOPLE SHE SAYS WITH A SIGH FOR HIS PART ROBERT SCHWARTZ THE BERNALILLO COUNTY DISTRICT ATTORNEY ISN'T SURE WHERE HE WILL FIND THE PROSECUTORS OR RESOURCES TO HANDLE THE INCREASED CASELOAD THE NEW LAWS WILL MAKE PLEA BARGAINING MORE DIFFICULT MOREOVER WITH SECONDTIME OFFENDERS NOW FACING A MANDATORY THREEDAY JAIL SENTENCE AND FOURTHTIME OFFENDERS FACING FELONY CHARGES AND A MANDATORY SIXMONTH JAIL TERM HE EXPECTS MORE AND MORE DEFENDANTS TO REQUEST JURY TRIALS EVERYBODY IS GOING TO FIGHT LIKE HELL MR SCHWARTZ GRUMBLES IN FARMINGTON IN THE FAR NORTHWEST CORNER OF THE STATE JUDGES CONTINUE TO METE OUT SOME OF THE STATE'S STIFFEST DWI SENTENCES BUT JAILS ALREADY ARE OVERFLOWING WITH DRUNKEN DRIVERS WITH THE NEW LAWS EXPECTED TO INCREASE THE BURDEN LOCAL OFFICIALS ARE SCRAMBLING TO RAISE 18 MILLION TO CONVERT AN OLD SCHOOL INTO A 120BED DWI DETENTION AND TREATMENT UNIT IN THE MEANTIME THE LARGEST PLACE TO SEND OFFENDERS OTHER THAN THE JAIL IS THE PUBLICLY FUNDED 50BED FOUR WINDS ADDICTION RECOVERY CENTER WHERE THERE ALREADY IS A TWO TO THREEMONTH WAITING LIST FOR LONGTERM TREATMENT SOME PATIENTS ALREADY HAVE GONE THROUGH THE CENTER'S 72HOUR DETOXIFICATION PROGRAM NEARLY 400 TIMES AND MORNINGS FIND KNOTS OF SHIVERING MEN WAITING OUTSIDE THE DOORS TO RETRIEVE SHOES AND SHIRTS THAT THEY HAD FORGOTTEN WHEN CHECKING OUT I THINK MOST OF THE COMMUNITY PEOPLE SEE IT AS A LAWENFORCEMENT PROBLEM SAYS DIRECTOR SHARON GLADSON AS SHE WALKS THROUGH A WARD FILLED WITH SLEEPING MEN WRAPPED IN WHITE SHEETS BUT WE'RE GOING TO HAVE TO FIGURE OUT SOMETHING TO DO BESIDES APPREHENDING THEM 9312310110 931231 MARTECH'S CHIEF TISDALE SHORN OF 2 TOP POSTS EXALASKA GOV SHEFFIELD NAMED NEW CHAIRMAN CEO OF TROUBLED FIRM BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL MARTECH USA INC SAID ITS BOARD REPLACED BEN C TISDALE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER JUST WEEKS AFTER THE COMPANY FILED FOR CHAPTER 11 BANKRUPTCYCOURT PROTECTION AMID ALLEGATIONS OF ACCOUNTING AND OTHER PROBLEMS THE ANCHORAGE ALASKA ENVIRONMENTAL CLEANUP AND CONSTRUCTION CONCERN SAID MR TISDALE 57 YEARS OLD DIDN'T OBJECT TO HIS BEING REPLACED BY ANOTHER BOARD MEMBER FORMER ALASKA GOV WILLIAM J BILL SHEFFIELD THE COMPANY SAID THAT MR TISDALE HAD WANTED TO RELINQUISH THE TOP POSITIONS FOR SOME TIME IN PART BECAUSE OF HEALTH REASONS RELATED TO TWO STROKES MR TISDALE WHO IS MARTECH'S BIGGEST SHAREHOLDER WITH A 49 STAKE REMAINS PRESIDENT AND CHIEF OPERATING OFFICER AND A MEMBER OF THE BOARD HE WAS UNAVAILABLE FOR COMMENT YESTERDAY MANY PAST AND CURRENT MARTECH OFFICIALS BLAME MR TISDALE FOR THE COMPANY'S CURRENT TROUBLES WHICH INCLUDE INVESTIGATIONS BY MILITARY AUTHORITIES AND FEDERAL PROSECUTORS INTO POSSIBLE CONTRACT FRAUD OR ENVIRONMENTALLAW VIOLATIONS AS WELL AS POOR PERFORMANCE EVALUATIONS ON NUMEROUS MILITARY JOBS AND MORE THAN 100 LAWSUITS FILED BY SUBCONTRACTORS CLAIMING THEY HADN'T BEEN PAID THE COMPANY HAS DENIED THOSE ALLEGATIONS MARTECH'S ACCOUNTING PRACTICES WHICH HAVE BEEN UNDER INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION DREW RENEWED SCRUTINY EARLIER THIS MONTH AS THE COMPANY DOUBLED ITS LOSS ESTIMATE FOR THE YEAR ENDED AUG 31 TO AS MUCH AS 33 MILLION FROM AN ESTIMATE OF AT LEAST 15 MILLION IT HAD PROVIDED JUST TWO WEEKS EARLIER THE COMPANY SAID IT HAD NO CHOICE BUT TO FILE FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE WHEN IT MADE THAT LATEST LOSS ESTIMATE YESTERDAY'S DEVELOPMENTS FOLLOW A DIZZYING COLLAPSE BY MARTECH WHICH UNTIL RECENTLY WAS CONSIDERED BY MANY ANALYSTS TO BE A RAPIDLY GROWING POWER IN THE CLEANUP INDUSTRY BUT THE COMPANY HAS BEEN REELING SINCE NOVEMBER WHEN PUBLISHED REPORTS DISCLOSED MANY OF THE PROBLEMS AND THE STOCK VALUE PLUNGED AS MUCH AS 64 IN ENSUING WEEKS ON THE NEW YORK STOCK EXCHANGE TRADING HAS BEEN SUSPENDED SINCE DEC 14 WHEN THE COMPANY INDICATED IT WOULD FILE FOR REORGANIZATION UNDER CHAPTER 11 FOR HIS PART MR SHEFFIELD 65 IS NO STRANGER TO CONTROVERSY DURING HIS FIRST AND ONLY TERM AS ALASKAN GOVERNOR THE DEMOCRAT CAME UNDER FIRE FROM CRITICS FOR LEASING TO THE STATE AN OFFICE BUILDING IN FAIRBANKS THAT WAS PART OWNED BY A CAMPAIGN CONTRIBUTOR THE STATE'S SENATE BASED ON A GRAND JURY'S RECOMMENDATION CONSIDERED A MOVE TO IMPEACH MR SHEFFIELD BUT THE EFFORT FAILED FOR LACK OF VOTES HE STEADFASTLY MAINTAINED HE DIDN'T KNOW OF THE PARTOWNERSHIP UNTIL AFTER THE FACT MR SHEFFIELD WHO ALSO ANGERED VOTERS WITH A GOVERNMENT COSTCUTTING PROGRAM WAS BOOTED OUT OF OFFICE IN 1986 FAILING TO SURVIVE THE DEMOCRATIC PRIMARY SINCE 1989 HE HAS SERVED AS AN OUTSIDE DIRECTOR ON MARTECH'S SEVENMEMBER BOARD AND INDICATED IN AN INTERVIEW YESTERDAY THAT HE LOOKED FORWARD TO THE CHALLENGE OF TRYING TO TURN MARTECH AROUND WE'RE GOING TO REIN IN THE COMPANY GET A LITTLE SMALLER PUT SOME COST CONTROLS IN AND LEARN FROM THE PRIOR MISTAKES SAID MR SHEFFIELD WHO PREVIOUSLY HAD OWNED AND OPERATED ALASKA'S LARGEST CHAIN OF HOTELS I THINK WE HAVE A GOOD CHANCE OF COMING OUT OF CHAPTER 11 AND GETTING THE FAITH BACK FROM OUR SHAREHOLDERS AND CUSTOMERS SECURITIES ANALYSTS HOWEVER MAINTAINED A CAUTIOUS STANCE ON MARTECH'S FUTURE UNTIL YOU SEE WHAT COMES OUT OF BANKRUPTCY IT'S SHEER SPECULATION WHAT THE SHAREHOLDER VALUE WILL BE SAID BILL CURREN ANALYST AND BROKER FOR BRIDGECORP SECURITIES IN NEWPORT BEACH CALIF YOU DON'T KNOW WHAT THE CREDITORS WILL WANT 9312310109 931231 CAMBIOR SOUTHWESTERN PACT MONTREAL CAMBIOR INC SAID IT AND SOUTHWESTERN GOLD CORP AGREED TO BUY MINERA PARACCAY SA A COMPANY HOLDING GOLDMINING CONCESSIONS IN SOUTHCENTRAL PERU FOR 115 MILLION PAYABLE IN INSTALLMENTS FOR UP TO EIGHT YEARS CAMBIOR A MINING CONCERN SAID IT WILL OWN 70 OF A JOINT VENTURE WITH SOUTHWESTERN OF VANCOUVER BRITISH COLUMBIA TO WORK THE PERUVIAN PROPERTY CLOSING OF THE ACQUISITION IS SCHEDULED FOR NEXT MONTH SUBJECT TO REGULATORY APPROVAL AND OTHER CONDITIONS 9312310108 931231 SEAGRAM'S TIME WARNER STAKE WASHINGTON SEAGRAM CO MONTREAL LIFTED ITS STAKE IN TIME WARNER INC NEW YORK TO 104 FROM 93 SEAGRAM CURRENTLY HOLDS ABOUT 3908 MILLION SHARES OF TIME WARNER ACCORDING TO A SEAGRAM FILING WITH THE SECURITIES AND EXCHANGE COMMISSION SEAGRAM SAID IT PAID BETWEEN 4412 A SHARE AND 4425 A SHARE FOR ITS LATEST PURCHASES THE SPIRITS MAKER HAS SAID IT PLANS TO ACQUIRE AS MUCH AS 15 OF TIME WARNER 9312310106 931231 WHO'S NEWS LIVE ENTERTAINMENT POST FILLED LOS ANGELES LIVE ENTERTAINMENT INC SAID IT NAMED ROGER BURLAGE PRESIDENT AND CHIEF EXECUTIVE OFFICER MR BURLAGE 51 YEARS OLD HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TRIMARK HOLDINGS INC A FILM TV AND HOMEVIDEO DISTRIBUTOR BASED IN SANTA MONICA CALIF MR BURLAGE ALSO WILL JOIN LIVE'S BOARD THE POSITIONS AT LIVE HAD REMAINED UNFILLED SINCE SEPTEMBER WHEN DAVID MOUNT DEPARTED TO BECOME COPRESIDENT AND CHIEF OPERATING OFFICER OF TIME WARNER INC'S MUSIC DISTRIBUTION UNIT LIVE WHICH EMERGED FROM BANKRUPTCYLAW PROTECTION LAST SPRING IS A HOMEVIDEO DISTRIBUTION COMPANY WHICH IS 53OWNED BY A UNIT OF PIONEER ELECTRONIC CORP OF JAPAN TRIMARK EXECUTIVES WEREN'T AVAILABLE FOR COMMENT 9312310105 931231 YOUR MONEY MATTERS WEEKEND REPORT RESOLUTIONS TO HELP YOU THROUGH A NEW YEAR BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL WOULDA COULDA SHOULDA LOOK IT'S NEW YEAR'S EVE YOU CAN FINALLY STOP MOANING ABOUT ALL THOSE THINGS YOU DIDN'T DO IN 1993 IT'S TIME TO WIPE THE SLATE CLEAN AND START OVER AND WHAT BETTER WAY THAN TO MAKE A FEW NEW YEAR'S RESOLUTIONS IT'S LIKE A GUILTRELIEF TRIP SAYS MARTIN M SHENKMAN A NEW YORK LAWYER AND FINANCIAL ADVISER WE CAN FORGET ALL THE BAD STUFF FROM THE PAST YEAR AND MAKE PLANS FOR THE GREAT YEAR AHEAD BUT IF YOU PLAN TO KEEP YOUR NEW NEW YEAR'S PROMISES DON'T GET CARRIED AWAY IN DRAWING UP THE LIST THE KEY IS TO MAKE RESOLUTIONS IN INCREMENTS THAT ARE PALATABLE MR SHENKMAN SAYS IF YOU TACKLE EVERYTHING AT ONCE YOU'LL GET NOTHING DONE BECAUSE YOU'LL BE OVERWHELMED SO TO GIVE YOU A NUDGE AND A FEW IDEAS HERE ARE SOME RESOLUTION RECOMMENDATIONS FROM THE EXPERTS GET ORGANIZED THAT OUGHT TO BE NO 1 ON MANY PEOPLE'S NEW YEAR'S LISTS YOU'VE GOT TO HAVE YOUR FINANCIAL AND LEGAL INFORMATION ON HAND AND ARRANGED SO YOU CAN ACTUALLY GET AT IT BEFORE YOU CAN MOVE ON TO OTHER PROJECTS YET THIS CAN BE A DAUNTING TASK SO RATHER THAN RESOLVE TO GET EVERYTHING ORGANIZED AT ONCE PROMISE YOURSELF TO SPEND THREE HOURS A MONTH ON THE TASK THAT'S ACHIEVABLE DON'T START BY LOOKING BACK FORGET ABOUT THE BOXES OF STUFF YOU HAVE ALREADY STACKED UP TO FILE SAYS VIRGINIA APPLEGARTH A BOSTON INSURANCE ADVISER AND FINANCIAL PLANNER JUST START FROM TODAY YOU CAN GO BACK AND ADD THAT STUFF LATER ON FIND OUT WHERE YOUR MONEY GOES TOTAL UP WHERE YOU SPENT YOUR MONEY IN 1993 AND YOU MAY BE SURPRISED YOU'LL FIND YOU ARE SPENDING A LOT MORE MONEY THAN YOU THOUGHT AND YOU ARE SPENDING IT ON STUPID THINGS SAYS MS APPLEGARTH THEN IF YOU WANT YOU CAN DO SOMETHING ABOUT IT LOOKING AT HER OWN SPENDING HABITS MS APPLEGARTH SAYS SHE WAS HORRIFIED TO SEE HOW MUCH SHE SPENT EATING AT RESTAURANTS JUST BECAUSE SHE HADN'T FIGURED OUT WHAT TO COOK FOR DINNER USE TECHNOLOGY WE ALL SUFFER FROM TIME POVERTY SAYS KAREN SPERO A CLEVELAND FINANCIAL PLANNER BUT AUTOMATICPAYMENT FEATURES AND COMPUTERIZED FINANCIAL PROGRAMS CAN SAVE TIME AND PROVIDE VALUABLE INFORMATION SHE SAYS INDEED KEEPING THIS RESOLUTION CAN MAKE IT EASIER TO LIVE UP TO THE FIRST TWO RESOLUTIONS BY GIVING YOU A TOOL FOR ORGANIZING YOUR FINANCES COMPUTERIZE YOUR CHECKBOOK AND OTHER FINANCIAL RECORDS AND YOU'LL BE ABLE TO PRINT OUT DETAILED REPORTS ON BOTH WHERE YOUR MONEY COMES FROM AND WHERE IT GOES INVEST MORE WITH TAXFREE MONEYMARKET YIELDS HOVERING AROUND 2 YOU DON'T HAVE THE LUXURY OF LETTING YOUR CASH JUST SIT SAYS STEVEN ENRIGHT A RIVER VALE NJ FINANCIAL PLANNER THAT MEANS MOVING MORE MONEY INTO BONDS MUTUAL FUNDS OR STOCKS EVEN THE CONSERVATIVE INVESTOR CAN GET SIGNIFICANTLY HIGHER YIELDS BY JUST MOVING INTO SHORTTERM BOND FUNDS HE SAYS MS SPERO SUGGESTS OPENING TWO OR THREE MUTUALFUND ACCOUNTS THAT AUTOMATICALLY TAKE 50 A MONTH OR MORE OUT OF YOUR BANK ACCOUNT YOU WON'T MISS THE 50 AND IT COULD BE VERY VALUABLE LATER ON DON'T BE TOO CONSERVATIVE WITH THAT MONEY BY INVESTING IN AN AGGRESSIVEGROWTH FUND A MODERATEGROWTH FUND AND AN INTERNATIONALGROWTH FUND SHE SAYS YOU'LL SEE HOW DIFFERENT TYPES OF FUNDS PERFORM I THINK YOU LEARN MORE THAT WAY SHE SAYS PUT DOWN THE STOCK TABLES CHECKING YOUR STOCK AND MUTUALFUND INVESTMENTS EVERY DAY IS A GOOD WAY TO DRIVE YOURSELF CRAZY SAYS MR ENRIGHT WHO BELIEVES IN ADOPTING A LONGTERM INVESTMENT OUTLOOK ONCE A MONTH IS USUALLY ENOUGH HE SAYS TAKE AN INTERNATIONAL VIEW TO SEE HOW MUCH INTERNATIONAL EXPOSURE YOUR LONGTERM PORTFOLIO CAN STAND SAN FRANCISCO FINANCIAL PLANNER TIM KOCHIS SUGGESTS SUBTRACTING YOUR AGE FROM 80 THEN MULTIPLYING THE ANSWER BY TWO PERCENTAGE POINTS GIVEN THIS FORMULA AS MUCH AS 60 OF A 50YEAROLD'S LONGTERM PORTFOLIO COULD BE INVESTED OUTSIDE THE US OTHER ADVISERS SAY THAT'S WAY TOO MUCH RECOMMENDING AN INTERNATIONAL EXPOSURE OF ONLY 15 TO 20 FOR MOST PEOPLE BUT THEY AGREE MOST AMERICANS NEED MORE INTERNATIONAL FLAVOR WHY AMERICAN INVESTORS HAVE THEIR JOBS THEIR HOMES THEIR PENSIONS AND VIRTUALLY ALL OF THEIR INVESTMENTS IN THE US SAYS MR KOCHIS AND THE US ECONOMY ACCOUNTS FOR MAYBE A THIRD OF THE WORLD'S ECONOMIES TO GET STARTED HE SUGGESTS A BROADLY DIVERSIFIED INTERNATIONAL MUTUAL FUND REVIEW YOUR WILL TIME MOVES ON AND THINGS CHANGE SAYS MR KOCHIS PEOPLE NEED TO TAKE A LOOK AT THEIR ESTATEPLANNING ARRANGEMENT TO MAKE SURE WILLS AND TRUSTS ARE UP TO DATE THE NEW YEAR PRESENTS THE PERFECT OPPORTUNITY OF COURSE THAT MAY MEAN FINDING YOUR WILL YOUR HEALTHCARE PROXY AND YOUR DURABLE POWER OF ATTORNEY AS MR SHENKMAN POINTS OUT YOU CAN HAVE THE BEST LEGAL DOCUMENTS IN THE WORLD BUT THEY WON'T DO YOU ANY GOOD IF NO ONE CAN FIND THEM TALK TO YOUR FAMILY COMMUNICATION IS ONE OF THE BEST FINANCIALPLANNING TOOLS INCLUDE FAMILY MEMBERS WHEN SETTING YOUR FINANCIAL GOALS AND YOU WON'T END UP WORKING AT CROSS PURPOSES SAYS MS SPERO START WITH YOUR SPOUSE BUT INCLUDE CHILDREN IN DISCUSSIONS THAT ARE APPROPRIATE BE THEY SETTING ALLOWANCE AMOUNTS PLANNING FOR COLLEGE OR DOING ESTATE PLANNING THAT MAY SOUND SIMPLE BUT MR ENRIGHT SAYS THIS IS PROBABLY THE ONE RESOLUTION HIS CLIENTS ARE LEAST LIKELY TO KEEP SINCE MANY DON'T LIKE SHARING THEIR FINANCIAL SECRETS BUT HE FEELS STRONGLY THAT FAMILY MEMBERS SHOULD BE GIVEN A LIST OF YOUR INVESTMENTS AND INSURANCE POLICIES YOUR DEATH OR DISABILITY SHOULDN'T BE THE FIRST TIME YOUR SPOUSE OR CHILDREN GET AN INDEPTH LOOK AT YOUR INVESTMENTS AND OTHER FINANCIAL INFORMATION PAY OFF YOUR CREDIT CARDS THIS APPLIES TO MORE PEOPLE THAN YOU MIGHT THINK I HAVE PEOPLE WHO MAKE 300000 A YEAR AND HAVE CREDITCARD BALANCES SAYS MS APPLEGARTH SHE SUGGESTS FIGURING OUT HOW MUCH YOU CAN AFFORD EACH MONTH AND THEN SETTING A DATE BY WHICH ALL OF THE CARD BALANCES SHOULD BE PAID OFF THE SAVINGS CAN BE DRAMATIC GIVEN THAT THE AVERAGE FIXEDRATE CREDIT CARD STILL CHARGES AN ANNUAL INTEREST RATE OF MORE THAN 175 ESTABLISH CASHMACHINE DISCIPLINE FIGURE OUT HOW MUCH YOU NEED THEN LIMIT YOURSELF TO ONE WITHDRAWAL A WEEK FROM THE AUTOMATIC TELLER MACHINE SAYS MS SPERO DON'T DO 50 BUCKS NOW AND 50 BUCKS LATER SHE SAYS THAT IS JUST A REVOLVING DOOR AND YOU'LL LOSE TRACK OF HOW MUCH YOU ARE ACTUALLY SPENDING IF YOU SLIP TRY AGAIN EVEN REALISTIC RESOLUTIONS HAVE A WAY OF COMING UNDONE ALMOST A QUARTER OF ALL RESOLUTION MAKERS LOSE THEIR RESOLVE WITHIN ONE WEEK AND ONLY 19 ARE SUCCESSFUL FOR TWO YEARS SAYS JOHN C NORCROSS A UNIVERSITY OF SCRANTON PSYCHOLOGY PROFESSOR WHO HAS STUDIED RESOLUTIONS BUT SLIPS DON'T ALWAYS LEAD TO FAILURE EVEN THE SUCCESSFUL PEOPLE SLIPPED AN AVERAGE OF 14 TIMES DR NORCROSS SAYS INDEED SUCCESSFUL AND UNSUCCESSFUL RESOLUTION MAKERS ALL SLIP THE SAME NUMBER OF TIMES ON AVERAGE HE SAYS BUT THE SUCCESSFUL ONES PICK THEMSELVES UP ONE MORE TIME AND TRY AGAIN NEW YEAR'S RESOLUTIONS ARE NOT A 100YARD DASH THROUGH THE FIRST WEEK OF JANUARY HE SAYS THEY ARE A MARATHON THROUGHOUT THE YEAR 9312310104 931231 THURSDAY'S MARKETS BOND PRICES PLUNGE PULLING STOCKS LOWER BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL PLUNGING BOND PRICES KNOCKED STOCKS MOSTLY LOWER THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE SLID 1845 POINTS TO 377588 STANDARD & POOR'S 500STOCK INDEX LOST 194 TO 46864 BUT THE NASDAQ COMPOSITE INDEX GAINED 260 TO 77108 FURTHER SIGNS OF A STRENGTHENING ECONOMY SENT BOND PRICES TUMBLING IN THIN TRADING THE LABOR DEPARTMENT REPORTED THAT JOBLESS CLAIMS FOR THE WEEK ENDED SATURDAY SANK 39000 FAR MORE THAN EXPECTED THE BOND MARKET'S WOES WORSENED AFTER THE COMMERCE DEPARTMENT SAID SALES OF NEW HOMES JUMPED 113 IN NOVEMBER TO THE HIGHEST LEVEL IN SEVEN YEARS EVEN A SLIGHT DROP IN THE CHICAGO PURCHASING MANAGEMENT ASSOCIATION INDEX DID LITTLE TO EASE THE BOND MARKET'S DOWNTURN THE ASSOCIATION'S INDEX OF BUSINESS ACTIVITY FELL TO 626 IN DECEMBER FROM 653 IN NOVEMBER BUT THAT IS STILL ABOVE THE 50 LEVEL THAT INDICATES EXPANSION OF THE MANUFACTURING SECTOR ANALYSTS SAID THE SHARP DECLINE IN BOND PRICES WAS EXACERBATED BY AN ABSENCE OF MANY TRADERS AHEAD OF THE HOLIDAY THE JUMP IN INTEREST RATES CAUSED THE INDUSTRIAL AVERAGE TO SLUMP AS MUCH AS 24 POINTS BEFORE CLOSING SEVERAL POINTS ABOVE THE LOW FOR THE DAY THE DOW INDUSTRIALS HIT THREE STRAIGHT RECORDS IN A DRIVE TOWARD THE 3800 LEVEL THIS WEEK BUT AFTER COMING WITHIN A FRACTION OF THAT ON WEDNESDAY IT FAILED TO REACH THAT MILESTONE WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 008 TO 11117 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 1936 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1093 ISSUES FELL AND 991 ROSE BOND PRICES TUMBLED THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 1 1/4 POINTS OR MORE THAN 1250 FOR EACH 1000 FACE AMOUNT TO YIELD 634 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS AT 17353 MARKS AND 11183 YEN COMPARED WITH 17275 MARKS AND 11174 YEN WEDNESDAY 9312310103 931231 UNOCAL CORP SETTLES FTC CHARGES RELATED TO ITS PRODUCT CLAIMS WASHINGTON UNOCAL CORP ONE OF THE NATION'S LARGEST OIL COMPANIES SETTLED CHARGES THAT IT MADE UNPROVEN CLAIMS FOR TWO TYPES OF ITS GASOLINE THE FEDERAL TRADE COMMISSION SAID UNDER A CONSENT AGREEMENT THE COMPANY AND ITS ADVERTISING AGENCY LEO BURNETT CO AGREED NOT TO MAKE CLAIMS ABOUT THE PERFORMANCE OF ANY GASOLINE WITHOUT HAVING SCIENTIFIC EVIDENCE TO SUPPORT THE CLAIMS IN ADDITION UNOCAL AND ONE OF ITS SUBSIDIARIES UNION OIL CO OF CALIFORNIA MUST MAIL A NOTICE TO CREDITCARD CUSTOMERS IN FIVE STATES EXPLAINING THAT MOST CARS DON'T NEED A HIGHOCTANE GASOLINE AND SUGGESTING THAT THEY CHECK THEIR OWNERS' MANUALS TO DECIDE THE OCTANE LEVEL OF GAS TO PURCHASE UNOCAL CLAIMED IN RADIO AND TELEVISION ADS THAT ITS 92OCTANE UNLEADED GAS IS THE HIGHEST LEVEL OCTANE GASOLINE YOU CAN BUY TO HELP YOUR CAR RUN BETTER LONGER THE COMMISSION SAID ANOTHER AD SAID ITS 89 OCTANE GAS WOULD GIVE A CAR SMOOTHER STARTS AND STOPS ACCORDING TO THE FTC THE COMPANY MADE SIMILAR CLAIMS IN AN AD MAILED WITH CREDITCARD BILLS TO CUSTOMERS IN OREGON WASHINGTON NEVADA CALIFORNIA AND HAWAII THE FTC SAID UNOCAL DIDN'T HAVE ADEQUATE SUBSTANTIATION FOR THESE ASSERTIONS IN LOS ANGELES A UNOCAL SPOKESMAN SAID THE COMPANY DIDN'T ADMIT THAT WE DID ANYTHING WRONG THE SPOKESMAN ADDED THAT UNOCAL DECIDED TO SETTLE IN ORDER TO AVOID THE EXTRAORDINARY EXPENSES OF LITIGATING THE CLAIMS THE CONSENT AGREEMENT WILL BE PUBLISHED IN THE FEDERAL REGISTER SHORTLY AND THEN BE SUBJECT TO PUBLIC COMMENT FOR 60 DAYS AFTER WHICH THE COMMISSION WILL DECIDE WHETHER TO MAKE IT FINAL A CONSENT AGREEMENT IS FOR SETTLEMENT PURPOSES ONLY AND DOESN'T CONSTITUTE ADMISSION OF A LAW VIOLATION 9312310102 931231 MARKETING & MEDIA ACTON'S CABLETV SALE RALEIGH NC ACTON CORP WHICH IS INVOLVED IN INSURANCE MANUFACTURING AND REALESTATE DEVELOPMENT SAID IT COMPLETED THE SALE OF ITS LAST REMAINING CABLETELEVISION SYSTEM INTERMEDIA PARTNERS III AN INVESTMENT PARTNERSHIP IN SAN FRANCISCO WHOSE OWNERS INCLUDE TELECOMMUNICATIONS INC SUMITOMO CORP AND BANK OF NEW YORK CO PAID 76 MILLION FOR THE 44000SUBSCRIBER SYSTEM IN MARYLAND'S ANNE ARUNDEL COUNTY 9312310101 931231 PROVIDENCE HEALTH CARE BUYBACK BEREA OHIO PROVIDENCE HEALTH CARE INC SAID ITS BOARD APPROVED THE BUYBACK OF UP TO 200000 SHARES THE COMPANY'S BOARD HAS ADOPTED A RESOLUTION TO SEEK TO MAXIMIZE SHAREHOLDER VALUE BY SOLICITING OFFERS FOR THE COMPANY PROVIDENCE SAID THERE ARE SEVERAL PROSPECTIVE BUYERS AND IT EXPECTS TO RECEIVE BIDS FOR REVIEW SHORTLY PROVIDENCE WHICH OPERATES LONGTERM CARE FACILITIES CURRENTLY HAS ABOUT 46 MILLION SHARES OUTSTANDING 9312310100 931231 COMMODITIES CORN AND SOYBEAN FUTURES CONTINUE SLOW RISE AS REPORT SHOWS STRONG USAGE OF GRAIN FOR FEED BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO GRAIN FUTURES PRICES CONTINUED THEIR SLOW BUT STEADY UPWARD MARCH AS TRADERS TOOK STOCK OF A GOVERNMENT LIVESTOCK REPORT THAT INDICATED STRONG FEED USAGE OF GRAINS DURING THE NEXT THREE MONTHS AT THE CHICAGO BOARD OF TRADE CORN FOR MARCH DELIVERY WAS UP 225 CENTS TO 306 A BUSHEL WHILE THE PRICE OF THE ACTIVELY TRADED MARCH SOYBEAN FUTURES CONTRACT ROSE 35 CENTS TO 7125 A BUSHEL IN A HOGSANDPIGS REPORT RELEASED AFTER TRADING ON WEDNESDAY THE US AGRICULTURE DEPARTMENT FORECAST HOG SLAUGHTER TO DECLINE ONLY 1 TO 15 FROM NOW THROUGH MARCH SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO MANY GRAIN TRADERS HAD BEEN EXPECTING A LARGER DECLINE HE SAID THE GRAIN MARKET INTERPRETED IT AS POSITIVE BECAUSE THE POULTRY HERD REMAINS AT RECORD LEVELS MR BASSE SAID IT PORTENDS HIGH LEVELS OF GRAIN USAGE AS FEED OVER THE NEXT THREE MONTHS FEED USAGE OF US GRAIN IS ESPECIALLY IMPORTANT TO GRAIN PRICES IN THE WAKE OF LAST SUMMER'S WEAK HARVEST OF CORN AND SOYBEANS PRICES ANALYSTS SAY MUST RISE TO LEVELS AT WHICH GRAIN BECOMES TOO EXPENSIVE FOR FARMERS TO FEED TO THEIR LIVESTOCK IN ORDER TO ENSURE THAT ENOUGH GRAIN IS LEFT FOR HUMAN CONSUMPTION WEDNESDAY'S HOGSANDPIGS REPORT MR BASSE SAID SHOWED SLAUGHTER TAPERING OFF AFTER MARCH WHICH SHOULD SUPPLY SOME RELIEF IN THE QUANTITY OF GRAIN USED FOR FEED THE CBOT'S GRAIN MARKET IS AWAITING A JAN 12 USDA CROP REPORT IN WHICH THE DEPARTMENT WILL GIVE ITS FINAL ESTIMATE OF US CROP PRODUCTION FROM LAST FALL'S HARVEST IN ITS MOST RECENT CROP REPORT THE USDA PEGGED THE CORN CROP AT ONLY 65 BILLION BUSHELS DOWN 31 FROM LAST YEAR'S RECORD CORN PRODUCTION OF ABOUT 947 BILLION BUSHELS SOYBEAN PRODUCTION WAS ALSO LOWER WITH THIS YEAR'S CROP ESTIMATED AT 183 BILLION BUSHELS DOWN 17 FROM LAST YEAR'S 22 BILLION BUSHELS IN THE JAN 12 REPORT THE USDA IS EXPECTED TO REDUCE ITS ESTIMATE OF THIS YEAR'S CORN CROP BY AS MUCH AS 50 MILLION TO 100 MILLION BUSHELS AND CURTAIL THE SOYBEAN CROPPRODUCTION FIGURE BY 15 MILLION TO 40 MILLION BUSHELS IN THE REPORT THE DEPARTMENT ALSO WILL ESTIMATE FEED USAGE OF US GRAIN OVER THE PAST FEW MONTHS CONNIE FUSILIER A VICE PRESIDENT AT CONCORDE TRADING GROUP YESTERDAY EXPRESSED CONCERN ABOUT THE QUANTITY OF SOYBEAN OIL AVAILABLE IN CBOTAPPROVED WAREHOUSES FOR DELIVERY AGAINST THE EXCHANGE'S SOYBEANOIL FUTURES CONTRACTS STOCKS OF THE OIL ARE TIGHT WITH ONLY ENOUGH IN WAREHOUSES TO COVER ABOUT 3000 OF ABOUT 100000 SOYBEANOIL FUTURES CONTRACTS OUTSTANDING SHE SAID WHEN STOCKS OF ANY COMMODITY ARE EXTREMELY LOW IN EXCHANGEAPPROVED WAREHOUSES FUTURES PRICES CAN RISE HOWEVER MR BASSE OF AGRESOURCE DOWNPLAYED THE MARKET IMPACT OF THE TIGHT STOCKS SAYING THAT AMPLE STOCKS OF SOYBEAN OIL ARE AVAILABLE FROM COMMERCIAL GRAIN COMPANIES SUCH AS ARCHER DANIELS MIDLAND IN OTHER COMMODITY MARKETS YESTERDAY LIVESTOCK AND MEATS LIVESTOCK FUTURES PRICES ROSE IN THE WAKE OF A GOVERNMENT REPORT SHOWING LOWERTHANEXPECTED NUMBERS OF HOGS ON US FARMS AT THE CHICAGO MERCANTILE EXCHANGE HOGS FOR FEBRUARY DELIVERY WERE UP 040 CENT TO 4525 CENTS A POUND THE PRICE OF THE FEBRUARY PORKBELLY FUTURES CONTRACT ROSE 045 CENT TO 5712 CENTS A POUND DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS SAID NUMBERS IN THE USDA HOGSANDPIGS REPORT HAD COME IN BELOW EXPECTATIONS IN A NUMBER OF AREAS FOR INSTANCE HE SAID THE USDA LOWERED ITS YEARAGO ESTIMATE OF HOGS ON US FARMS BY 900000 HEAD ORANGE JUICE ORANGEJUICE FUTURES PRICES FELL AS FROST FAILED TO MATERIALIZE IN FLORIDA AT NEW YORK'S COTTON EXCHANGE JUICE FOR MARCH DELIVERY FELL 060 CENT TO 10725 A POUND DECEMBER AND JANUARY HISTORICALLY HAVE BEEN THE MONTHS WHEN FROST DAMAGES FLORIDA'S ORANGEJUICE CROP JUICE TRADERS TYPICALLY BID UP PRICES IN EARLY DECEMBER IN ANTICIPATION OF A POSSIBLE SUCH FREEZE AS EACH WEEK PASSES WITHOUT A DAMAGING FROST HOWEVER PRICES TEND TO SAG YESTERDAY'S DECLINE REFLECTED GROWING SKEPTICISM THAT A FROST WILL OCCUR THIS YEAR ANALYSTS SAID 9312310099 931231 WHO'S NEWS BANC ONE CORP BANC ONE CORP COLUMBUS OHIO RICHARD F KATCHUK 47 YEARS OLD AND CHARLES W SULERZYSKI 36 WERE NAMED SENIOR VICE PRESIDENTS OF THIS BANKING CONCERN MR KATCHUK WILL OVERSEE FINANCIAL PLANNING AND PERFORMANCE MEASUREMENT AND MR SULERZYSKI WILL BE RESPONSIBLE FOR STRATEGY DEVELOPMENT BETWEEN SUPPORT UNITS AND THE AFFILIATE NETWORK BOTH WERE VICE PRESIDENTS IN THEIR DIVISIONS AND SUCCEED NO ONE 9312310098 931231 WHO'S NEWS BENEFICIAL SAVINGS BANK BENEFICIAL SAVINGS BANK PHILADELPHIA ARMOND F GENTILE EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MUTUAL SAVINGS BANK WAS NAMED PRESIDENT MR GENTILE 58 YEARS OLD SUCCEEDS JOSEPH J MCLAUGHLIN 65 WHO IS RETIRING 9312310097 931231 INTERNATIONAL METALLGESELLSCHAFT BANK CREDITORS SLATE MEETING TO DISCUSS REVAMPING DEBTS BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT METALLGESELLSCHAFT AG'S NEW MANAGEMENT WILL MEET WITH BANK CREDITORS NEXT WEDNESDAY TO DISCUSS PLANS TO REORGANIZE OPERATIONS AND COVER THE FINANCIAL LIABILITIES THREATENING THE GERMAN MINING AND INDUSTRIAL CONCERN WE WANT TO LAY OUT ALTERNATIVES FOR SOLVING THE PROBLEMS SAID METALLGESELLSCHAFT SPOKESMAN HANS SCHREIBER THE COMPANY DECLINED TO COMMENT ON A REPORT IN DER SPIEGEL MAGAZINE THAT METALLGESELLSCHAFT'S NEW CHAIRMAN KAJO NEUKIRCHEN WOULD ASK THE COMPANY'S BANK CREDITORS FOR A MORATORIUM ON THE GROUP'S SHORTTERM DEBT ESTIMATED AT MORE THAN EIGHT BILLION MARKS 463 BILLION A SHORT VERSION OF THE MAGAZINE'S ARTICLE WHICH CLAIMS THAT THE COMPANY'S FINANCIAL CRISIS IS GRAVER THAN SO FAR DESCRIBED WAS RELEASED AHEAD OF THE MAGAZINE'S REGULAR MONDAY PUBLICATION THE COMPANY ALSO REFUSED TO COMMENT ON DER SPIEGEL'S ASSERTION THAT SOME OF ITS FOREIGNBANK CREDITORS WERE DEMANDING IMMEDIATE REPAYMENT OF THE LOANS IN ANY EVENT IT SAID IN A STATEMENT THERE ARE AMPLE LIQUID ASSETS AVAILABLE MR SCHREIBER SAID THE SUM REFLECTED SHORTTERM BANK LIABILITIES OF THE ENTIRE METALLGESELLSCHAFT GROUP AFTER FOUR YEARS OF BRISK EXPANSION HE ALSO SAID THAT THE HEAVY DEBT LOAD WASN'T UNUSUAL FOR A COMPANY WITH A MAJOR TRADING EMPHASIS MORE THAN HALF OF METALLGESELLSCHAFT'S FISCAL 1993 GROUP SALES OF 255 BILLION MARKS CAME FROM TRADING BANKERS SAY THEY WILL WANT TO LEARN A GOOD DEAL MORE NEXT WEEK THERE WILL BE SEVERAL DOZEN BANKS WANTING TO HEAR WHAT THEY SAY AND TO FIND OUT HOW THINGS GO FROM HERE WE DON'T HAVE A LOT OF INFORMATION RIGHT NOW SAID AN OFFICIAL AT A MAJOR FRANKFURT BANK METALLGESELLSCHAFT'S FINANCIAL WOES CAME TO LIGHT IN RECENT WEEKS WITH THE ANNOUNCEMENT OF A 347 MILLIONMARK PRETAX LOSS FOR THE YEAR ENDED SEPT 30 FOLLOWED BY CONFIRMATION OF SERIOUS POTENTIAL LOSSES FROM DEALINGS ON THE NEW YORK OIL FUTURES MARKET THE COMPANY NEVER DISCLOSED THE POTENTIAL SHORTFALL BUT ANALYSTS SAY THE OIL TRADING LOSSES COULD RUN TO AS MUCH AS ONE BILLION MARKS THE COMPANY'S SUPERVISORY BOARD HEADED BY DEUTSCHE BANK AG EXECUTIVE RONALDO SCHMITZ THIS MONTH DISMISSED METALLGESELLSCHAFT'S CHAIRMAN HEINZ SCHIMMELBUSCH AND SEVERAL OTHER SENIOR EXECUTIVES FOR FAILING TO INFORM THE BOARD OF THE FULL SCOPE OF THE COMPANY'S FINANCIAL DIFFICULTIES THE BOARD ASSERTED THAT THE SHORTCOMING POSED A POSSIBLE VIOLATION OF GERMAN CORPORATE LAW METALLGESELLSCHAFT'S MR SCHREIBER SAID BANKERS WILL BE INFORMED NEXT WEEK OF THE COMPANY'S DAMAGECONTROL EFFORTS AS WELL AS SOLUTIONS TO THE COMPANY'S FINANCIAL SQUEEZE AND THE DEFLATED PRICE FOR METALLGESELLSCHAFT SHARES ANALYSTS HAVE BEEN SPECULATING FOR WEEKS THAT THE COMPANY COULD BE FORCED TO GENERATE FUNDS BY WRITING DOWN ITS EQUITY CAPITAL OR SELLING VALUABLE OPERATIONS METALLGESELLSCHAFT SHARES DROPPED AGAIN IN TRADING ON THE FRANKFURT STOCK EXCHANGE YESTERDAY EVEN THOUGH THE MARKET ROSE TO A RECORD METALLGESELLSCHAFT FELL 250 MARKS TO 273 MARKS 159 9312310096 931231 CREDIT RATINGS FIRST INTERSTATE BANCORP STANDARD & POOR'S CORP RAISED ITS RATINGS ON FIRST INTERSTATE'S SENIOR DEBT TO SINGLEAMINUS FROM TRIPLEBPLUS SUBORDINATED DEBT TO TRIPLEBPLUS FROM TRIPLEB AND PREFERRED STOCK TO TRIPLEB FROM TRIPLEBMINUS IN ADDITION S&P RAISED ITS SUBORDINATED DEBT RATING ON FIRST INTERSTATE OVERSEAS FINANCE NV TO TRIPLEBPLUS FROM TRIPLEB S&P SAID FIRST INTERSTATE HAS SUBSTANTIALLY CHANGED ITS BUSINESS TO REDUCE RISKS BUT THE RATING AGENCY SAID IT EXPECTS CAPITAL AND RESERVES TO SHRINK MODERATELY THROUGH ANTICIPATED ACQUISITIONS AND RETURNS TO SHAREHOLDERS 9312310095 931231 WHO'S NEWS ASTORIA FINANCIAL CORP ASTORIA FINANCIAL CORP LAKE SUCCESS NY ALAN EGGLESTON WAS NAMED VICE PRESIDENT AND GENERAL COUNSEL A NEW POSITION AT THE ASTORIA FEDERAL SAVINGS & LOAN ASSOCIATION SUBSIDIARY OF THIS BANK HOLDING COMPANY MR EGGLESTON 40 YEARS OLD WAS FORMERLY SENIOR VICE PRESIDENT AND SECRETARY OF NATIONAL SAVINGS BANK OF ALBANY IN NEW YORK 9312310094 931231 WHO'S NEWS CAMDEN PROPERTY TRUST CAMDEN PROPERTY TRUST HOUSTON D KEITH ODEN WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS REAL ESTATE INVESTMENT TRUST ASSUMING THOSE POSITIONS FROM RICHARD J CAMPO WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR ODEN 37 YEARS OLD WAS A TRUST MANAGER AND CONSULTANT TO CAMDEN 9312310092 931231 BORDEN DISPUTES REPORT ON SELLING OFF ITS ASSETS NEW YORK BORDEN INC SAID ITS BOARD WASN'T ADVISED THAT RESTRUCTURING OR SELLING OFF ASSETS MIGHT YIELD AS MUCH AS 27 A SHARE THE COMPANY DISPUTED A REPORT IN THE HEARD ON THE STREET COLUMN IN WEDNESDAY'S WALL STREET JOURNAL THAT SAID INVESTMENT BANKERS ADVISING THE BOARD BELIEVED THE COMPANY COULD BOOST ITS SAGGING STOCK PRICE BY RESTRUCTURING BECAUSE IT FAILED TO FIND A BUYER WHO WOULD OFFER WHAT DIRECTORS DEEMED AN ADEQUATE PRICE YESTERDAY A BORDEN SPOKESMAN DECLINED TO SAY WHAT THE COMPANY'S INVESTMENT BANKERS HAD ADVISED THE BOARD INDIVIDUALS FAMILIAR WITH THE MATTER SAID BANKERS HAD TOLD THE COMPANY THAT A RESTRUCTURING WOULD INCREASE THE COMPANY'S STOCK PRICE EVEN IF NOT IMMEDIATELY AND THAT BORDEN OFFICIALS ARE CONCERNED THAT SHAREHOLDERS NOW MAY HAVE UNREALISTIC EXPECTATIONS THE FOOD AND INDUSTRIALPRODUCTS CONCERN CLOSED AT 17 A SHARE DOWN 125 CENTS IN NEW YORK STOCK EXCHANGE TRADING 9312310091 931231 TECHNOLOGY & MEDICINE SMITHKLINE WINS APPROVAL OF FDA TO SELL NEW DRUG BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL PHILADELPHIA SMITHKLINE BEECHAM SAID IT RECEIVED APPROVAL FROM THE US FOOD AND DRUG ADMINISTRATION TO MARKET KYTRIL AN INJECTABLE DRUG USED TO PREVENT NAUSEA IN CANCER PATIENTS THAT IS CAUSED BY CHEMOTHERAPY SMITHKLINE PLANS TO LAUNCH THE PRODUCT IN EARLY 1994 TAKING AIM AT THE ESTIMATED 400 MILLIONAYEAR MARKET CURRENTLY DOMINATED BY GLAXO INC'S ZOFRAN INTRAVENOUS ANTINAUSEA DRUG SMITHKLINE A UNIT OF SMITHKLINE BEECHAM PLC WOULDN'T DISCLOSE KYTRIL'S PRICE BUT HEMANT SHAH AN INDEPENDENT ANALYST SAID HE EXPECTS THE COMPANY TO SELL THE DRUG AT A SLIGHT DISCOUNT TO ZOFRAN'S PRICE OF ABOUT 145 A DAY HOSPITALS ARE EXTREMELY PRICE SENSITIVE MR SHAH SAID ADDING HE EXPECTS SMITHKLINE TO CAPTURE AT LEAST 25 OF THE MARKET IN 1994 A SMITHKLINE SPOKESMAN DECLINED TO COMMENT ON THE ANALYST'S PROJECTION BUT SAID THE COMPANY SEES GROWTH POTENTIAL FOR THE CLASS OF DRUGS CALLED 5HT3RECEPTOR ANTAGONISTS AS ZOFRAN AND KYTRIL GAIN MARKET SHARE FROM OLDER ANTINAUSEA DRUGS A SPOKESMAN FOR GLAXO A UNIT OF GLAXO HOLDINGS PLC SAID THE COMPANY WOULD MEET SMITHKLINE'S COMPETITIVE CHALLENGE BY MAKING SURE PHYSICIANS KNOW ZOFRAN HAS BEEN THE STANDARD OF CARE AND THERE'S LITTLE UNMET NEED ZOFRAN IS ALSO AVAILABLE AS AN ORAL TABLET FOR USE DURING CHEMOTHERAPY THAT CAUSES MORE MODERATE FORMS OF NAUSEA KYTRIL INTERFERES WITH THE BODY'S NATURAL DEFENSES AGAINST POISONS INCLUDING CANCER DRUGS THE DRUG PREVENTS SEROTONIN A CHEMICAL THAT IS RELEASED WHEN TOXINS ENTER THE BODY FROM STIMULATING 5HT3 NERVE RECEPTORS THAT TRIGGER THE VOMITING REFLEX SEPARATELY SMITHKLINE SAID ITS CONSUMER HEALTHCARE UNIT AGREED TO SELL ITS A200 LICE TREATMENT PRODUCT LINE IN THE US AND PUERTO RICO TO HOGIL PHARMACEUTICAL CORP TERMS WEREN'T DISCLOSED HOGIL BASED IN ARMONK NY IS A CLOSELY HELD MANUFACTURER AND DISTRIBUTOR OF THE INNOMED BRAND OF CONSUMER AND PET HEALTHCARE PRODUCTS SMITHKLINE SAID THE SALE IS CONSISTENT WITH ITS STRATEGY OF CONCENTRATING ITS NONPRESCRIPTIONDRUG BUSINESS ON A CORE OF BRANDS SEPARATELY THE FDA ANNOUNCED APPROVAL OF A DRUG THAT IT SAID CAN REDUCE THE NEED FOR BLOOD TRANSFUSIONS IN PATIENTS UNDERGOING HEARTBYPASS SURGERY EXCESSIVE BLEEDING IS A FREQUENT COMPLICATION OF CORONARYBYPASS SURGERY WHICH WAS PERFORMED ON 265000 AMERICANS IN 1991 IN A CLINICAL TRIAL 42 OF PATIENTS TREATED WITH THE NEW DRUG APROTININ NEEDED ONE UNIT OF BLOOD OR MORE COMPARED WITH 77 OF THOSE WHO DIDN'T RECEIVE THE DRUG APROTININ CAN REDUCE THE RISKS OF BYPASS SURGERY FOR SOME PATIENTS SAID FDA COMMISSIONER DAVID A KESSLER FEWER TRANSFUSIONS MEAN A MUCH LOWER RISK OF INFECTION OR POSSIBLE ADVERSE REACTIONS TO THE BLOOD THE DRUG WHICH WILL BE MARKETED UNDER THE NAME TRAYSYLOL INJECTION SHOULD BE RESERVED FOR HIGHRISK PATIENTS THOUGH BECAUSE IT CAN TRIGGER SEVERE REACTIONS SUCH AS KIDNEY TOXICITY THE DRUG MARKETED BY MILES INC OF WEST HAVEN CONN A UNIT OF BAYER AG OF GERMANY WILL BE MOST USEFUL TO PATIENTS AT HIGH RISK OF BLEEDING SUCH AS THOSE UNDERGOING REPEAT BYPASS SURGERY OR THOSE WITH BLOODCLOTTING PROBLEMS IT ALSO WILL PROVE BENEFICIAL TO PEOPLE WITH RARE BLOOD TYPES AND IN CASES WHEN ACCESS TO BLOOD IS LIMITED ACCORDING TO THE FDA 9312310090 931231 ONE LOST HIS JOB ONE LOST CONFIDENCE ONE SHRUGGED IT OFF DISASTER'S AFTERMATH VARIES FOR THREE WHO SURVIVED WORLD TRADE CENTER BOMB BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL I'M A NEW YORKER THROUGH MY FINGERTIPS FOR ME TO BE AFRAID OF SKYSCRAPERS MEANS I WOULDN'T BE ABLE TO CONDUCT MY LIFE AND I'M NOT USED TO LIVING WITH THAT KIND OF FEAR AND I CAN'T I CAN'T ALLOW IT NEW YORK WHEN SHE WAS INTERVIEWED JUST AFTER THE BOMBING AT THE WORLD TRADE CENTER LORI ESCHMANN WAS ABSOLUTELY DETERMINED THAT HER SCARY EXPERIENCE THERE THAT DAY WOULDN'T AFFECT HER LIFE BUT SHE FOUND THAT IT'S JUST NOT THAT EASY TO PUT TRAUMA ASIDE TEN MONTHS AFTER THE BOMBING WHICH KILLED SIX THE HUGE WORLD TRADE COMPLEX IS JUST ABOUT BACK TO NORMAL THE TV MOVIE HAS COME AND GONE AND FOOTAGE OF FRESHER TRAGEDIES DOMINATES THE NEWS BUT THREE SURVIVORS INTERVIEWED IMMEDIATELY AFTER THE BLAST AND IN THE MONTHS SINCE ILLUSTRATE HOW VARIED AND UNPREDICTABLE THE PERSONAL AFTERMATH OF DISASTER CAN BE JULIO MONTALVO FOR EXAMPLE LOST HIS JOB BECAUSE OF THE EXPLOSION A PENSIVE SOFTSPOKEN MAN HE ALSO LOST HIS CONFIDENCE AND SENSE OF SECURITY IN LIFE WHEN THE BOMB WENT OFF FEB 26 MR MONTALVO A 49YEAROLD MAINTENANCE WORKER WAS REPAIRING A BROKEN TOILET ON THE 16TH FLOOR OF THE VISTA HOTEL THE HOTEL ABUTS THE WORLD TRADE CENTER AND THE EXPLOSION OCCURRED DIRECTLY BENEATH IT I FELT THAT SUCKER GO OFF AND MY BODY MOVED FORWARD WITH THE BUILDING MR MONTALVO SAYS BLUISH SMOKE POURED OUT OF HALLWAY VENTS AND MR MONTALVO ESCAPED INTO A STAIRWELL SO CLOUDED HE COULDN'T SEE JUST THE SAME HE GOT TO THE STREET IN ABOUT FOUR MINUTES FOUND A GROUP OF BUDDIES IN A NEARBY BUILDING AND COMPARED NOTES NO ONE COULD LOCATE ONE COWORKER WILFREDO MERCADO AND MR MONTALVO WAS WORRIED WHEN HE TOOK THE SUBWAY HOME TO BROOKLYN LATER HE LEARNED MR MERCADO HAD BEEN KILLED THE BOMBING CLOSED THE VISTA AND LEFT MR MONTALVO MARRIED AND THE FATHER OF TWO CHILDREN TERRIFIED OF TALL BUILDINGS HAUNTED BY NIGHTMARES SHORTTEMPERED AND ANXIOUS TODAY HE DESCRIBES HIMSELF AS A DIFFERENT PERSON ONE WHOSE LIFE HAS BEEN RADICALLY CHANGED HIS RELATIONSHIPS WITH HIS WIFE AND TWO CHILDREN HAVE SUFFERED STRAINED FROM HIS LACK OF ENTHUSIASM FOR FAMILY OUTINGS AND A TEMPER THAT FLARES AT THE SLIGHTEST THING HE HAS FOUND SPOT WORK AT GASOLINE STATIONS BUT NOTHING FULL TIME HE IS LOOKING FOR A JOB AS A BUS DRIVER OR ANYTHING ELSE THAT WILL KEEP HIM OUT OF BUILDINGS HE FILLS HIS DAY BY CLEANING THE HOUSE WORKING ON HIS CAR AND PICKING UP HIS CHILDREN AFTER SCHOOL ALTHOUGH BEING AT HOME COMFORTS HIM HE STILL HAS NIGHTMARES ABOUT DEATH I TRY TO FORGET THE DREAMS THE NEXT DAY BUT I JUST CAN'T HE SAYS MR MONTALVO'S EXPERIENCE IS FAR FROM UNIQUE MOST PEOPLE ARE UNPREPARED FOR LIFETHREATENING SHOCKS AND MEMORIES OF THEM CAN BE PARTICULARLY LUCID AND PAINFUL SAYS LEONARD DAVIDMAN A PSYCHOLOGIST AT NEW YORK'S METROPOLITAN HOSPITAL HE HAS WORKED WITH A NUMBER OF PEOPLE TRAUMATIZED BY THE BOMBING AND ANYTHING REMINDING THEM OF IT WILL BE DISTURBING WHETHER IT'S A SKYSCRAPER OR A DARK ROOM OR THE SMELL OF SMOKE HE SAYS BUT NOT EVERYONE REACTS THAT WAY AND THERAPISTS DON'T KNOW WHY NEITHER DOES INVESTMENT BANKER RICHARD BOOKBINDER WHO FELT RELATIVELY UNSCATHED BY THE BLAST MAYBE IT'S THE KIND OF BUSINESS WE'RE IN WE'RE IN MARKETS THAT ARE VOLATILE AND CHANGE VERY QUICKLY AND WE'RE CONSTANTLY ADAPTING TO CHANGE SAYS THE 46YEAROLD PARTNER WITH SANDLER O'NEILL & PARTNERS INC WHOSE OFFICE IS ON THE 104TH FLOOR OF ONE OF THE TWO TRADE CENTER TOWERS WHEN THE BOMB WENT OFF MR BOOKBINDER AND HIS COLLEAGUES IGNORED A MOMENTARY FLICKERING OF THE LIGHTS AND ELECTRICAL EQUIPMENT AND KEPT TRADING BONDS THEN NEWS REPORTS OF AN EXPLOSION SHOWED UP ON COMPUTER SCREENS AND SOMEONE NOTICED LIGHT SMOKE SEEPING UNDER THE ELEVATOR DOORS IN THE HALLWAY OUR DISASTER RECOVERY BEGAN IN THE MIDDLE OF A CLOUD OF SMOKE MR BOOKBINDER RECALLS ENTHUSIASTICALLY DESCRIBING HIS COLLEAGUES RESPONDING LIKE A MASH UNIT TO THE CRISIS SOME SANDLER EMPLOYEES ESCAPED TO THE ROOF OF THE 110FLOOR TOWER CARRYING CELLULAR PHONES TO KEEP IN TOUCH OTHERS HEADED DOWN THE STAIRS WITH ONE PERSON DESIGNATED AS A RUNNER TO KEEP TABS ON THEM SOME MR BOOKBINDER AMONG THEM REMAINED IN THE OFFICE A LITTLE LONGER STILL TRYING TO TRADE BONDS BY ABOUT 4 PM NEARLY FOUR HOURS AFTER THE BLAST MR BOOKBINDER HAD WALKED DOWN THE DARK SMOKY STAIRS ARRANGED FOR TEMPORARY OFFICE SPACE SO SANDLER COULD RESUME BUSINESS ON MONDAY AND JOINED OTHER TRADE CENTER WORKERS AT A BAR THE ATTITUDE WAS HEY WE'RE NEW YORKERS WHAT'S GOING TO HAPPEN NEXT WEEK' HE SAID IN AN INTERVIEW SHORTLY AFTER THE EXPLOSION HE SAID HE WOULD HAVE NO QUALMS ABOUT RETURNING TO THE OFFICE WHEN IT REOPENED BUT CONCEDED SOME NERVOUSNESS FOR A FEW DAYS ABOUT COMMUTING ON THE PATH TRANSIT TUNNEL BETWEEN NEW YORK AND NEW JERSEY THE TRADE CENTER PATH STATION WAS DAMAGED IN THE BLAST THE FACT IS THAT YOUR WORLD CAN BE TURNED UPSIDE DOWN VERY QUICKLY AND THAT'S WHAT HAPPENED TO 50000 PEOPLE AND THEIR FAMILIES MR BOOKBINDER SAYS BUT OUR PRIORITY WAS TO GET BACK IN BUSINESS AND BACK IN BUSINESS HE IS MR BOOKBINDER SAYS LOUD NOISES STILL REMIND HIM OF THE EVENT BUT OVERALL HE EXPERIENCES NO EMOTIONAL DIFFICULTIES OR NIGHTMARES HIS ONLY CONCESSION TO DISASTER IS A HEAVYDUTY FLASHLIGHT STASHED IN HIS DESK DRAWER AS AN INSURANCE POLICY DISASTER ISN'T MUCH ON HIS MIND THOUGH MR BOOKBINDER RECENTLY DISCOVERED THE BATTERIES WERE RUN DOWN IT'S A HARD THING TO SAY HE MUSES BUT IT'S ALMOST LIKE NOTHING HAPPENED ALTHOUGH THOUSANDS OF PEOPLE SOUGHT THERAPY AFTER THE BLAST IT IS UNCLEAR HOW MANY OF THE PEOPLE WHO WORK IN THE WORLD TRADE COMPLEX STILL HAVE PROBLEMS CLEARLY MANY REMAIN SKITTISH WHEN A SMALL CLOSET FIRE BROKE OUT IN BROWN & WOOD'S LAW OFFICES IN SEPTEMBER MORE THAN 100 FIREFIGHTERS RESPONDED AND MANY PEOPLE AT THE FIRM AND ELSEWHERE IN THE COMPLEX PANICKED OR EXPERIENCED FLASHBACKS TO THE EXPLOSION INDEED TWO PEOPLE RECENTLY RESIGNED FROM BROWN & WOOD CITING THE BOMBING AS THEIR REASON SAYS A SPOKESMAN FOR THE FIRM MS ESCHMANN AN ASSISTANT VICE PRESIDENT AT DEAN WITTER IS ONE OF THOSE STRUGGLING TO REGAIN A SENSE OF WELLBEING SHE READILY DESCRIBED HER IMPRESSIONS OF THE EXPLOSION IN AN INTERVIEW SHORTLY AFTERWARD THINGS SEEMED SURREAL SHE RECALLED SHE WAS HAVING A LUNCHTIME MANICURE IN THE TRADE CENTER SHOPPING COMPLEX HEARD THE BLAST AND WENT OUTSIDE TO SEE WHAT WAS GOING ON THINKING PERHAPS THERE HAD BEEN A PATH TRAIN CRASH IT WASN'T UNTIL SHE SPIED FIREFIGHTERS EMERGING FROM HER OFFICE BUILDING DRAGGING BLACKENEDFACED PEOPLE WHO WERE SPITTING UP BROWN GOOK THAT SHE BECAME UNNERVED THAT'S WHEN IT HIT ME THAT OH MY GOD THIS IS SOMETHING DIFFERENT THAN I EXPECTED SHE RECALLED SHORTLY AFTER THE EXPLOSION MS ESCHMANN COMPLAINED ABOUT FREQUENT NIGHTMARES FILLED WITH IMAGES OF BROKEN GLASS LOUD NOISES SMOKE AND BANGS OVER THE ENSUING MONTHS THE BAD DREAMS GRADUALLY CEASED HER OFFICE REOPENED AND IT BECAME BUSINESS AS USUAL IN THE WORLD TRADE CENTER HOWEVER SHE SAYS THERE HAVE BEEN AT LEAST TWO BOMB SCARES SINCE FEBRUARY AND HER PERSISTENT FEELING OF VULNERABILITY MAKES HER ANGRY YOU KNOW WHAT'S REALLY FRUSTRATING IS THAT IT MAKES ME MUCH MORE AWARE OF MY OWN MORTALITY SAYS MS ESCHMANN IT MAKES ME THINK THAT THERE'S NO ORDER IN THINGS AND THAT'S VERY UNSETTLING I FEEL NO RHYME OR REASON SOMETIMES RECENTLY SHE SAYS SHE SPOTTED A TWEED SUITCASE IN AN OFFICE STORAGE ROOM WHEN NO ONE CLAIMED OWNERSHIP RIGHT AWAY SHE CALLED THE POLICE FEARING A BOMB THE SUITCASE TURNED OUT TO BELONG TO A SECURITY GUARD AND A FEW WEEKS AGO SHE LEFT WORK FEELING LIGHTHEARTED AFTER AN OFFICE CELEBRATION BUT ON THE STREET OUTSIDE THE WORLD TRADE CENTER COMPLEX THE SIGHT OF A CLUSTER OF AMBULANCES FILLED HER WITH FEAR JUST WHEN YOU THINK YOU'VE FORGOTTEN ABOUT IT SOMETHING LIKE THIS HAPPENS SHE SAYS HER AGITATION GROWING AS SHE DESCRIBES THE INCIDENTS AND HER OWN REACTIONS I'VE JUST ABOUT HAD IT WITH THIS I JUST CAN'T LIVE WITH THIS MUCH ANGER I JUST CAN'T DO IT ANY LONGER 9312310089 931231 HEARD ON THE STREET TURNER'S ACCESS TO TV PROGRAMMING MAKES ITS STOCK WORTH WATCHING IF AIRWAVES EXPAND BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF THE TELEVISION OF THE FUTURE REALLY DOES HAVE 500 CHANNELS TURNER BROADCASTING SYSTEM WILL BE A STOCK WORTH WATCHING EVERYBODY TALKS ABOUT THE NEW COMMUNICATIONS SUPERHIGHWAY SAYS MONEY MANAGER SCOTT BLACK PRESIDENT OF BOSTON'S DELPHI MANAGEMENT THE ONE THING PEOPLE FORGET ABOUT IS THAT YOU NEED PROGRAMMING TURNER SPECIALIZES IN PROGRAMMING TO FILL THE AIRWAVES ATLANTABASED TURNER BROADCASTING CAN DRAW ON THE CNN NEWS TEAM MGM FILM LIBRARY ATLANTA BRAVES BASEBALL TEAM ATLANTA HAWKS BASKETBALL TEAM AND HANNABARBERA CARTOON LIBRARY ALL OF THIS GETS PUMPED OUT THROUGH SUCH TURNER VEHICLES AS CNN TBS TNT AND THE CARTOON NETWORK TURNER BROADCASTING ALSO WILL START TAPPING ITS TWO NEW MOVIE PRODUCTION COMPANIES CASTLE ROCK ENTERTAINMENT AND NEW LINE CINEMA IT ANNOUNCED PLANS TO ACQUIRE THE COMPANIES EARLIER THIS YEAR THERE ARE TWO CLASSES OF STOCK THE CLASS A SHARES EACH CARRYING ONE VOTE AT TURNER'S ANNUAL MEETING CLOSED YESTERDAY AT 26 1/2 UP 1/2 THE CLASS B SHARES WHICH CARRY ONEFIFTH OF A VOTE AND TYPICALLY TRADE FOR SLIGHTLY LESS THAN THE OTHER CLASS ENDED AT 26 1/2 UP 5/8 MR BLACK CALCULATES THAT TURNER BROADCASTING HAS A BREAKUP VALUE OF CLOSE TO 36 A SHARE HE ARRIVES AT THAT FIGURE BY PUTTING A MULTIPLE OF 12 ON TURNER'S OPERATING CASH FLOW BY CONTRAST PARAMOUNT COMMUNICATIONS ALSO SEEN AS A KEY PROVIDER OF TELEVISION PROGRAMMING LOOKS AS IF IT WILL BE SOLD TO QVC NETWORK OR VIACOM FOR AROUND 18 TIMES OPERATING CASH FLOW MR BLACK SAYS YOU'D BE HARDPRESSED TO FIND A COMPANY OF THIS QUALITY AT 70 CENTS ON THE DOLLAR THE BOSTON MONEY MANAGER ARGUES YOU DON'T FIND THAT MANY MEDIA COMPANIES THAT ARE AT A BIG DISCOUNT TO THEIR BREAKUP VALUE BUT IF TURNER BROADCASTING IS SUCH A GREAT COMPANY WHY IS THE MARKET LEAVING ITS SHARES TO LANGUISH EVEN SOME SHAREHOLDERS VOICE RESERVATIONS IT'S A PURE PLAY ON THE PROGRAMMING SIDE AND I OWN IT BECAUSE I THINK AT SOME POINT IT WILL BE AN INTERESTING STOCK SAYS MARGERY PARKER AN ANALYST WITH KEYSTONE GROUP A BOSTON MUTUALFUND MANAGER BUT ON A FUNDAMENTAL BASIS IT'S FULLY VALUED DOUBTS ALSO AFFLICT ANDREW MASSIE WHO HAS BOUGHT TURNER BROADCASTING STOCK FOR THE MUTUAL FUND HE MANAGES THE 175 MILLION WARBURG PINCUS CAPITAL APPRECIATION FUND THE PROBLEM WITH TURNER IS TWOFOLD MR MASSIE SAYS THE CASH FLOW IS BEING AGGRESSIVELY REINVESTED IN NEW PROGRAMMING VENTURES NONE OF WHICH HAVE PAID OFF IN A MAJOR WAY RECENTLY THEN YOU'VE GOT THE ISSUE OF WHAT WILL HAPPEN TO TURNER DOWN THE ROAD IT'S NOT CLEAR THAT THE INDEPENDENT SHAREHOLDERS WILL BE THE BENEFICIARY OF WHATEVER MIGHT OCCUR MR MASSIE IS ALLUDING TO TURNER'S ODD OWNERSHIP STRUCTURE TURNER BROADCASTING CHAIRMAN TED TURNER MAY OWN ENOUGH SHARES TO HAVE MAJORITY VOTING CONTROL BUT HIS HANDS AREN'T COMPLETELY FREE AFTER TURNER BROADCASTING ACQUIRED THE MGM FILM LIBRARY IN 1986 THE COMPANY FOUND ITSELF STRUGGLING UNDER A MOUNTAIN OF DEBT AND ENDED UP SELLING MINORITY STAKES TO OTHER CABLE OPERATORS AS A RESULT TELECOMMUNICATIONS AND TIME WARNER HAVE MAJOR STAKES IN TURNER BROADCASTING WITH THESE TWO LARGE SHAREHOLDERS HOVERING OVER THE COMPANY MR MASSIE WONDERS HOW SMALLER INVESTORS WOULD FARE IF TURNER BROADCASTING EVER WAS SOLD OR SPLIT UP TURNER'S PAST FINANCIAL DIFFICULTIES LINGER IN THE MINDS OF SOME INVESTORS BUT DELPHI'S MR BLACK SAYS THE COMPANY IS IN FINE FINANCIAL CONDITION NOW HE FIGURES THE COMPANY HAD OPERATING CASH FLOW OF 666 MILLION IN THE FIRST NINE MONTHS OF 1993 EASILY COVERING INTEREST PAYMENTS OF 138 MILLION THIS IS NOT A MARGINAL COMPANY FINANCIALLY MR BLACK SAYS THEY DON'T HAVE TO BEG BORROW AND STEAL LIKE THEY DID FIVE OR 10 YEARS AGO MR BLACK CONCEDES THAT IF MR TURNER SEES A CHANCE TO MAKE A MAJOR ACQUISITION THE COMPANY COULD END UP DEEPLY IN DEBT ONCE AGAIN THERE ISN'T GOING TO BE STEADY PROGRESSION IN CASH FLOW HE SAYS TED TURNER IS WILLING TO MAKE LARGE ACQUISITIONS HE'S WILLING TO TAKE ONE STEP BACK TO GO THREE STEPS FORWARD EVEN SO MR BLACK RECKONS TURNER BROADCASTING IS A COMPELLING BUY HE FIRST BOUGHT THE CLASS B SHARES AT AROUND 19 AND SAYS HE IS ADDING TO HIS HOLDINGS AT CURRENT PRICES EVERYONE IS RUNNING TO SET UP THEIR OWN MULTIMEDIA NETWORK SAYS OSCAR CASTRO COMANAGER OF 211 MILLION MONTGOMERY GLOBAL COMMUNICATIONS FUND BUT FOR THOSE NETWORKS TO BE PROFITABLE THEY'RE GOING TO NEED PROGRAMMING TO GO THROUGH THE NETWORKS I THINK THERE'S A LOT OF VALUE IN TURNER A SHARES DEBT ADJUSTMENT SYMBOL IS TBSA 9312310088 931231 INTERNATIONAL BANESTO DOWNFALL LINKED TO EXCHAIRMAN REGULATORS FOCUS ON BUSINESS STRATEGIES OF CONDE BY NICHOLAS BRAY AND CARLTA VITZTHUM STAFF REPORTERS OF THE WALL STREET JOURNAL MADRID AS REGULATORS ANALYSTS AND BANKING EXECUTIVES SIFT THROUGH THE FINANCIAL MESS AT BANCO ESPANOL DE CREDITO THE FINGERPOINTING IS BEING DIRECTED ALMOST SOLELY AT ONE MAN A LOOK AT SOME OF THE SPANISH BANK'S BUSINESS DEALS ILLUSTRATES THE SEEMINGLY CAVALIER MANNER IN WHICH FORMER CHAIRMAN MARIO CONDE APPARENTLY LIKED TO PLAY WITH BANESTO'S MONEY REGULATORS SAY A FASTTALKING 45YEAROLD FORMER LAWYER MR CONDE WAS OUSTED THIS WEEK FROM A POST HE HAD HELD FOR SIX YEARS THERE IS NO SUGGESTION THAT HE MAY HAVE ACTED ILLEGALLY BUT THE DE FACTO GOVERNMENT TAKEOVER OF BANESTO THIS WEEK CARRIES WITH IT ECHOES OF SUCH FINANCIAL DRAMAS AS THE COLLAPSE OF ROBERT MAXWELL'S MEDIA EMPIRE IN BRITAIN AND OF WERNER REY'S OMNI GROUP IN SWITZERLAND MANY EXPECT THE DOWNFALL OF BANESTO SPAIN'S FOURTHLARGEST BANK TO REVEAL A DARKER SIDE TO SPANISH FINANCE PUTTING A SPOTLIGHT ON REGULATORY INSTITUTIONS AND ON THE ROLE OF JP MORGAN & CO THE US INVESTMENT BANK THAT ADVISED BANESTO IN A RECENT CAPITALRAISING OPERATION IT ALSO MAY PROMPT QUESTIONS ABOUT THE USE IN SPAIN OF FRONT COMPANIES TO MAKE SENSITIVE INVESTMENTS AN ACTIVITY IN WHICH MR CONDE SEEMS TO HAVE SPECIALIZED ADDRESSING A SPANISH PARLIAMENTARY COMMISSION YESTERDAY BANK OF SPAIN GOVERNOR LUIS ANGEL ROJO AND ECONOMY MINISTER PEDRO SOLBES CONFIRMED PUBLISHED ESTIMATES THAT BANESTO FACES A FINANCIAL SHORTFALL OF AS MUCH AS 500 BILLION PESETAS 351 BILLION COMPARED WITH ITS OFFICIAL CAPITAL AND RESERVES OF 392 BILLION PESETAS SHEDDING NEW LIGHT ON THE CENTRAL BANK'S DECISION THIS WEEK TO OUST MR CONDE AND HIS ASSOCIATES MR ROJO REVEALED THAT THE BANK OF SPAIN HAD ALREADY BEEN FORCED IN RECENT WEEKS TO COME TO BANESTO'S RESCUE AFTER IT RAN INTO PROBLEMS BORROWING FUNDS ON SPAIN'S INTERBANK MONEY MARKET BANESTO HAD BEEN KNOWN TO BE HAVING DIFFICULTIES FOR SOME TIME BUT RUMORS THAT IT WAS ON THE EDGE OF COLLAPSE GREW JUST BEFORE CHRISTMAS AT THE ROOT OF BANESTO'S PROBLEMS MR ROJO SAID IS A SHARP INCREASE IN BAD LOANS RESULTING FROM ITS AGGRESSIVE LENDING POLICIES BETWEEN 1988 AND 1991 DURING THIS PERIOD THE BANK OF SPAIN GOVERNOR SAID BANESTO MORE THAN DOUBLED THE SIZE OF ITS LENDING BOOK AT A TIME WHEN ITS MAIN COMPETITORS INCREASED THEIR LENDING BY ONLY 55 MEANWHILE BANESTO WAS BIDDING AGGRESSIVELY FOR DEPOSITS BY OFFERING HIGH INTEREST RATES TO ATTRACT CUSTOMERS BETWEEN 1988 AND 1991 THE AVERAGE COST TO BANESTO OF ITS DEPOSITS ROSE 51 COMPARED WITH AN AVERAGE INCREASE AT OTHER SPANISH BANKS OF 40 BANESTO'S STRATEGY PROMOTED A FEW YEARS AGO WITH GREAT FANFARE BY MR CONDE CREATED A SQUEEZE ON THE BANK'S MARGINS JUST AS SPAIN'S ECONOMY WAS SLOWING DOWN AFTER A HEADY EXPANSION ON TOP OF THAT BANESTO WAS ALSO BEING DRAGGED DOWN BY LOSSES ON ITS PORTFOLIO OF FINANCIAL AND INDUSTRIAL COMPANIES BANDED TOGETHER UNDER THE UMBRELLA OF THE HOLDING COMPANY KNOWN AS CORP INDUSTRIAL Y FINANCIERA DE BANESTO OR LA CORPORACION TO PLUG ITS GROWING FINANCIAL NEEDS MR ROJO SAID BANESTO STARTED SELLING OFF SOME OF LA CORPORACION'S MOST PRESTIGIOUS HOLDINGS BUT IT INVESTED THE MONEY IT GOT IN OTHER AREAS OF HIGH RISK AND LOW SHORTTERM PROFITABILITY AS SPAIN'S ECONOMY DETERIORATED BANESTO GOT CAUGHT IN A SPIRAL OF LENDING LOSSES ASSET SALES AND DETERIORATING ASSET VALUES THAT ULTIMATELY BROUGHT IT TO ITS KNEES IN SHORT MR ROJO SAID BANESTO FOUND ITSELF WITH ASSETS THAT WERE LARGELY UNPRODUCTIVE ON ONE SIDE A LOAN PORTFOLIO WITH A LARGE PERCENTAGE OF OVERDUE LOANS ON THE OTHER SIDE AN INVESTMENT PORTFOLIO OF LOW PROFITABILITY A 105 STAKE IN SPANISH PUBLISHER GRUPO ANAYA SA WAS PART OF THAT SCENARIO WHILE BANESTO'S WAGE BILL SOARED AS A RESULT OF EXTRAVAGANT HIRING PRACTICES MR CONDE WAS BUSY PUBLICIZING THE IMAGE OF BANESTO AS A LEADER IN WHAT HE CLAIMED WAS A NEW STYLE OF BANKING AND BROADENING THE BANK'S INVESTMENTS IN A SERIES OF MEDIA COMPANIES IN 1989 HE FOCUSED HIS SIGHTS ON ANAYA A FAMILYCONTROLLED EDUCATIONAL PUBLISHER WITH PLANS TO BRANCH INTO TELEVISION ANAYA HAD JUST FLOATED 20 OF ITS CAPITAL ON THE MADRID STOCK EXCHANGE INSTEAD OF BUYING SHARES IN ANAYA OPENLY HOWEVER BANESTO TURNED TO TWO INVESTMENT COMPANIES REIT AND INVERSIONES VILLAMANRIQUE RUN BY FINANCIERS KNOWN TO HAVE LINKS WITH MR CONDE IN AN OPERATION WHOSE BROAD DETAILS WERE CONFIRMED THIS WEEK BY A BANESTO SPOKESMAN REIT AND VILLAMANRIQUE WERE THE PRINCIPAL PURCHASERS OF ANAYA SHARES OVER A PERIOD OF SEVERAL MONTHS PUSHING THEIR PRICE TO MORE THAN 11000 PESETAS 7722 COMPARED WITH ANAYA'S ORIGINAL FLOTATION PRICE OF 7000 PESETAS IN EARLY 1990 ANAYA PULLED OUT OF ITS TV PROJECT AND ITS SHARE PRICE BEGAN TO FALL REIT AND VILLAMANRIQUE TRIED TO SELL THEIR SHARES BACK TO ANAYA BUT TO NO AVAIL RETAINING THE SHARES THEY CONTINUED TO FINANCE THEIR HOLDING WITH CREDIT FROM BANESTO FINALLY THIS PAST NOV 18 IN AN OPERATION INTERPRETED BY SOME INVESTMENT ANALYSTS AS A MOVE TO CLEAN OUT THE TWO COMPANIES' BOOKS IN THE FACE OF BANESTO'S SHAKY FINANCIAL SITUATION THEY TRANSFERRED OWNERSHIP OF THE SHARES TO BANESTO IN RETURN FOR THE CANCELLATION OF THE LOAN IN TAKING OVER OWNERSHIP OF THE SHARES BANESTO INCLUDED IN ITS INVESTMENT THE COSTS OF PROVIDING CREDIT TO FINANCE THE PURCHASES DURING THE PREVIOUS FOUR YEARS THE EFFECTIVE PURCHASE PRICE ACCORDING TO STOCK EXCHANGE OFFICIALS AMOUNTED TO NEARLY 15700 PESETAS PER SHARE COMPARED WITH A MARKET PRICE FOR THE SHARES THAT DAY OF 3470 PESETAS THE 67 BILLION PESETA INVESTMENT BROUGHT WITH IT AN EFFECTIVE LOSS FOR THE BANK OF MORE THAN FIVE BILLION PESETAS NOT ALL OF HIS MEDIA INVESTMENTS WERE SO ILLFATED IN 1992 BANESTO WON A FOOTHOLD IN TELEVISION THROUGH THE PURCHASE OF A 249 SHARE OF ANTENA 3 IT ALSO ESTABLISHED FINANCIAL RELATIONSHIPS WITH GRUPO ZETA PUBLISHER OF THREE LEADING NEWS MAGAZINES A CATALAN DAILY AND THE ECONOMIC NEWSPAPER LA GACETA DE NEGOCIOS AND A NUMBER OF OTHER PUBLICATIONS BY PROVIDING THEM WITH LOANS ONE RESULT OF THIS STRATEGY INVESTMENT ANALYSTS POINT OUT WAS EFFECTIVELY TO GAG CRITICISM IN MOST OF THE SPANISH MEDIA OF MR CONDE'S BUSINESS ACTIVITIES UNTIL THIS WEEK THE MOUNTING RUMORS IN MADRID FINANCIAL CIRCLES OVER THE PAST FEW MONTHS ABOUT THE BANK'S DIFFICULTIES WENT LARGELY UNREPORTED IN MOST SPANISH NEWSPAPERS THAT HELPS EXPLAIN WHY BANESTO'S SHAREHOLDERS FAILED TO QUESTION THE BANK'S COMMERCIAL AND INVESTMENT STRATEGY LESS EASY TO EXPLAIN HOWEVER WAS THE ENTHUSIASM FOR BANESTO'S STRATEGY OF JP MORGAN WHOSE VICE CHAIRMAN ROBERTO G MENDOZA INSISTED IN PRESSING AHEAD IN AN ADVISORY RELATIONSHIP WITH MR CONDE EVEN AFTER OTHER JP MORGAN INVESTMENT BANKERS HAD EXPRESSED SERIOUS RESERVATIONS ABOUT THE BANESTO CHAIRMAN'S STYLE OF DOING BUSINESS THE US INVESTMENT BANK THIS YEAR ORCHESTRATED A TWOSTAGE CAPITAL INCREASE FOR BANESTO RAISING 775 MILLION AS PART OF THAT OPERATION IT LED A 162 MILLION INVESTMENT IN THE BANK BY A FUND CALLED CORSAIR OF WHICH IT ITSELF HOLDS APPROXIMATELY 10 ALONGSIDE MOSTLY US INSTITUTIONAL INVESTORS NOW THAT INVESTMENT HAS BECOME A COSTLY EMBARRASSMENT FOR JP MORGAN MR CONDE FOR HIS PART HASN'T MADE ANY PUBLIC STATEMENTS SINCE HIS OUSTER HOWEVER A CLOSE AIDE OF HIS WHO IS STILL AT BANESTO SAID MR CONDE LIVED FOR THE BANK WHAT HAPPENS NEXT WILL DEPEND ON THE STRATEGY DEVELOPED BY THE NEW TEAM APPOINTED TO RUN BANESTO UNDER THE SUPERVISION OF THE BANK OF SPAIN LED BY ALFREDO SAENZ ABAD WHO IS ALSO FIRST VICE CHAIRMAN OF BANCO BILBAO VIZCAYA SPAIN'S BIGGEST BANK THE NEW TEAM WAS BUSY YESTERDAY ANALYZING THE BANK'S BOOKS IN THE SHORT TERM THE BANK'S IMMEDIATE CASH NEEDS WILL BE COVERED WITH THE ASSISTANCE OF THE ENTIRE SPANISH BANKING COMMUNITY THAT MR ROJO MADE CLEAR ON THURSDAY WAS THE PRICE THAT HAD TO BE PAID IN ORDER TO STAVE OFF A POTENTIAL CRISIS THAT COULD HAVE AFFECTED THE ENTIRE SPANISH BANKING SYSTEM A FURTHER PART OF BANESTO'S FINANCIAL SHORTFALL IS EXPECTED TO BE MADE UP THROUGH THE SALE OF ASSETS AT THE END OF THE DAY ANALYSTS SAY SPAIN'S OVERCROWDED BANKING SYSTEM IS LIKELY TO BE BETTER OFF FOR LANCING A BOIL THAT IT'S HAD FOR YEARS IN THE LONG TERM IT'S DEFINITELY A GOOD THING FOR THE SECTOR COMMENTS ALVARO VILLACIEROS DIRECTOR OF TRADING AND SALES AT JAMES CAPEL IN MADRID IN THE SHORT TERM HOWEVER IT'S GOING TO MEAN A DIET OF BITTER PILLS 9312310087 931231 LETTERS TO THE EDITOR GENEVA FOUGHT FOR HER LIFE IN 1602 IN HER EXCELLENT DEC 15 ARTICLE NOT EVEN GENEVA OFFERS A HAVEN FROM LOBBYISTS NEGOTIATORS FIND ASRA NOMANI REFERS TO THE SETE DE L'ESPLANADE WHICH SHE DESCRIBES AS AN ANNUAL FESTIVAL MARKING A BATTLE THAT SAVED THE TOWN FROM FRENCH INVADERS ACTUALLY THIS FESTIVAL IS OUR GENEVA NATIONAL HOLIDAY AND ITS NAME IS LA FETE DE L'ESCALADE IT COMMEMORATES A FAILED TAKEOVER ATTEMPT OF OUR CITY IN 1602 NOT BY FRENCH INVADERS BUT BY THE DUKE OF SAVOY CHARLESEMMANUEL SUPPORTED BY OTHER CATHOLIC POWERS BUT NOT BY FRANCE SAVOY BECAME PART OF FRANCE IN 1860 ONLY L'ESCALADE TAKES ITS NAME FROM THE LADDERS USED BY THE INVADERS TO SCALE THE WALLS OF THE CITY THIS WAS A HEROIC VICTORY AGAINST AN ENEMY OVERWHELMINGLY SUPERIOR IN ARMS AND MEN ENTIRELY SURROUNDED BY CATHOLIC LAND GENEVA WAS THEN THE SPIRITUAL CAPITAL OF CALVINISM HER SYMBOLIC AND GEOPOLITICAL IMPORTANCE CAN BE COMPARED TO THAT OF BERLIN FROM 1945 TO 1989 STRONGHOLD OF THE FREE WORLD IN THE MIDST OF COMMUNIST LAND FOR THE OCCASION ALL TRUE GENEVANS STILL SING SOME OR ALL OF THE 60ODD VERSES OF THEIR PSALM AND NATIONAL ANTHEM IN OLD GENEVAN DIALECT CE QUE L'AINO WHICH THANKS GOD FOR THIS MIRACULOUS DELIVERANCE BUT NOWADAYS THIS HOLIDAY DOES NOT CARRY ANY SECTARIAN MEANING IN OUR CITY OF IMMIGRANTS THE CATHOLICS THE JEWS AND THE MUSLIMS TAKEN AS A WHOLE NOW OUTNUMBER THE PROTESTANTS AND THEY ALSO TAKE JOYOUS PART IN THIS CELEBRATION ITS TRUE MEANING IS INDEED UNIVERSAL L'ESCALADE TELLS US THAT THE LITTLE GUY HAS OFTEN TO FEND FOR HIMSELF IN THIS WORLD OF OURS WITHOUT HOPE OF HELP FROM THE RICH AND FROM THE POWERFUL BUT IF HIS CAUSE IS JUST AND IF HE IS READY TO FIGHT FOR IT HE CAN IN THE END PREVAIL AGAINST FORMIDABLE ODDS 9312310086 931231 ADVERTISING BREWERS GO HEAD TO HEAD OVER BEER ADS BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU THINK MARKETING WARS ARE ONLY FOR CORPORATE GIANTS CHECK OUT THE SPIRITED BATTLE THAT'S BEEN BREWING AMONG SOME OF THE SMALLEST COMPANIES IN THE BEER INDUSTRY THE BATTLE STEMS FROM ADVERTISING CLAIMS MADE BY BOSTON BEER CO THAT ITS POPULAR SAMUEL ADAMS BEER WAS NAMED THE BEST BEER IN AMERICA FOUR YEARS RUNNING AT THE GREAT AMERICAN BEER FESTIVAL HELD EACH FALL IN DENVER SEVERAL RIVAL BREWERS INSIST THE CLAIM ISN'T TRUE AND HAVE UNLEASHED ANTIADAMS ADVERTISING CONSUMER INVESTIGATIONS AND THREATS TO BOYCOTT THE NEXT BEER FESTIVAL THE BREWERY'S ADVERTISING IS SO HORRIBLE IT'S PACKED WITH LIES FUMES BERT GRANT OWNER AND BREWMASTER AT YAKIMA BREWING CO YAKIMA WASH JIM KOCH PRESIDENT OF BOSTON BEER DISMISSES THE FLAP AS THE RANTINGS OF SORE LOSERS AND SOME OTHER SMALLER BREWERS HAVE COME TO BOSTON BEER'S DEFENSE SAM ADAMS HAS BEEN A SPECTACULAR SUCCESS SO THEY'RE JEALOUS SAYS JOSEPH OWADES A CALIFORNIA BREWER BUT YESTERDAY MR KOCH SAID HE WILL PHASE OUT HIS FOUR YEARS RUNNING ADS BETWEEN NOW AND MAY AND WILL BEGIN RUNNING NEW ADS THAT MEET GREAT AMERICAN BEER FESTIVAL GUIDELINES HARD FEELINGS HAVE BEEN SIMMERING FOR SOME TIME BETWEEN BOSTON BEER AND ITS RIVAL MICROBREWERIES WHO HAVE COMPLAINED ABOUT BOSTON BEER'S ADVERTISING CLAIM THAT SAMUEL ADAMS IS THE ONLY AMERICAN BEER IMPORTED INTO GERMANY SEVERAL MICROBREWERIES SHIP THERE SAYS STEVE HINDY PRESIDENT OF BROOKLYN BREWING CO NEW YORK MR KOCH DISMISSES THEM AS TOKEN SHIPMENTS AND HAS REFUSED TO CHANGE HIS ADS MICROBREWERY PURISTS ALSO ARE UPSET THAT MR KOCH CALLS BOSTON BEER A MICROBREWERY WHEN MOST OF HIS BEER IS BREWED BY OTHERS UNDER CONTRACT IN FACT BOSTON BEER'S PRODUCT IS MOSTLY BREWED AT REGIONAL BREWER PITTSBURGH BREWING CO HE ISN'T REALLY A BREWER AT ALL SAYS JOE SLESAR PRESIDENT OF SLESAR BROS BREWING CO IN BOSTON THE TRUTH OF BOSTON BEER'S CLAIMS IS THAT SAMUEL ADAMS BEERS DID WIN FIRST PLACE IN CONSUMER PREFERENCE POLLS TAKEN IN 1985 1986 1987 AND 1989 AT THE GREAT AMERICAN BEER FESTIVAL SAMUEL ADAMS DIDN'T ENTER IN 1988 AND THE POLL WAS DISCONTINUED AFTER 1989 IN PART OVER DEBATES ABOUT HOW SAMUEL ADAMS WON SAYS CHARLIE PAPAZIAN PRESIDENT OF THE ASSOCIATION OF BREWERS THE FESTIVAL ORGANIZER SMALL BREWERS COMPLAINED THAT MR KOCH BOUGHT ADMISSION TICKETS FOR FESTIVALGOERS AND GAVE AWAY SAMUEL ADAMS BASEBALL CAPS NOW SAYS MR PAPAZIAN THE FESTIVAL AWARDS GOLD SILVER AND BRONZE MEDALS IN 32 BEER CATEGORIES TRAINED JUDGES DETERMINE THE WINNERS BY BLIND TASTE TESTS AND NO OVERALL WINNER IS NAMED IN THE MOST PUBLIC ATTACK ON BOSTON BEER'S CLAIMS TINY CHICAGO BREWING CO WHICH BREWED ABOUT 2400 BARRELS OF BEER IN 1992 COMPARED WITH SAMUEL ADAMS'S 273000 HAS BEEN RUNNING RADIO SPOTS AND NEWSPAPER ADS IN CHICAGO THERE'S A BEER OUT OF BOSTON CLAIMING TO BE THE BEST BEER IN AMERICA SAYS CHICAGO BREWING PRESIDENT STEVE DINEHART IN ONE OF HIS ADS AT CHICAGO BREWING WE FIND THAT A LITTLE TROUBLING MR DINEHART NOTES THAT HIS LEGACY LAGER WON GOLD MEDALS IN THE EUROPEAN PILSNER CATEGORY IN 1991 AND 1992 FOR SAMUEL ADAMS TO CONTINUE TO CLAIM THE BEST BEER TITLE IN ITS COMMERCIALS FOUR YEARS AFTER THE CONSUMER POLL WAS DISCONTINUED IS LIKE THE BOSTON CELTICS CLAIMING THEY'RE THE WORLD CHAMPIONS HE SAYS THE CELTICS LAST WON A WORLD TITLE IN 1986 MR DINEHART ISN'T THE ONLY ONE COMPLAINING ABOUT MR KOCH'S CLAIMS BROOKLYN BREWING'S MR HINDY SAYS HIS AMBER LAGER WON A GOLD MEDAL AT THE FESTIVAL IN 1992 BUT WHEN HE TOLD RETAILERS DISTRIBUTORS AND CUSTOMERS ABOUT IT MANY SAID THEY THOUGHT SAMUEL ADAMS HAD WON THAT IT SEEMED UNFAIR MR HINDY SAYS BECAUSE HE COULD TELL HIS STORY THROUGH A BIG MEDIA ADVERTISING CAMPAIGN HE HAD A BIGGER IMPACT THAN ME EXPLAINING IT TO INDIVIDUALS HE WAS SO ANGRY HE COMPLAINED TO THE NEW YORK CITY CONSUMER AFFAIRS DIVISION ROBERT MARTIN DEPUTY GENERAL COUNSEL OF THE DIVISION SAYS THE DEPARTMENT IS INVESTIGATING WHETHER THE CLAIMS VIOLATE THE CITY'S CONSUMER PROTECTION LAW PROTESTING BREWERS HAVE EVEN TRIED TO GET THE ASSOCIATION OF BREWERS TO CLEAR UP THE ADVERTISING MUDDLE WITH LITTLE SUCCESS THE ASSOCIATION DID ADOPT NEW RULES IN 1992 REQUIRING BREWERS USING FESTIVAL AWARDS IN THEIR ADVERTISING TO CITE THE SPECIFIC CATEGORY MEDAL AND YEAR SCOFFLAWS WOULD BE BANNED FROM THE 1993 FESTIVAL THE ASSOCIATION RULED BUT WHEN MR KOCH REFUSED TO CHANGE HIS ADS AND THREATENED TO SUE THE FESTIVAL THE ASSOCIATION BACKED DOWN ALLOWING SAMUEL ADAMS INTO THE FESTIVAL FOR THE PURPOSES OF AVOIDING LITIGATION THE ASSOCIATION SAID IN A NEWS RELEASE MR PAPAZIAN SAYS HE CONTINUED TO NEGOTIATE WITH MR KOCH ABOUT CHANGING THE ADS MR KOCH POINTS OUT THAT SAMUEL ADAMS BEERS HAVE WON 12 MEDALS SINCE THE JUDGING METHOD WAS CHANGED A FEW OF THOSE MEDALS HAVE BEEN GOLDS IN 1993 SAMUEL ADAMS DOUBLE BOCK WON A BRONZE IN THE BOCK CATEGORY AND SAMUEL ADAMS OCTOBERFEST WON A SILVER IN THE AMBER LAGER CATEGORY I'M PROUD OF THE AWARDS I'VE WON HE SAYS NO OTHER BREWER HAS WON SO MANY AWARDS MR KOCH INSISTS HIS FOUR YEARS RUNNING ADS WERE AUTHORIZED BY THE FESTIVAL NOTING THAT HE HAS USED THAT PHRASE BECAUSE THE FESTIVAL WOULDN'T ALLOW HIM TO SAY FOUR YEARS IN A ROW BUT IN A NEWS RELEASE SENT OUT YESTERDAY HE SAID HE WOULD DISCONTINUE THOSE ADS AND BEGIN A CAMPAIGN THAT WILL HIGHLIGHT HIS TOP 10 AWARDS INCLUDING HIS FOUR CONSUMER POLL AWARDS AND HIS SIX GOLD MEDALS IN CATEGORY JUDGING PEPSICO'S PEPSICOLA IS PUSHING CONSUMERS TO FILL THE FRIDGE WITH DIET PEPSI DURING FOOTBALLPLAYOFF SEASON WITH A MAJOR CUSTOMIZED PROMOTIONAL CAMPAIGN STARTING JAN 17 PEPSI WILL TARGET ROUGHLY 10 MILLION READERS OF TIME PEOPLE SPORTS ILLUSTRATED AND ENTERTAINMENT WEEKLY WITH A SERIES OF PERSONALIZED PRINT ADS SELECTIVELY BOUND INTO THE TIME WARNER MAGAZINES THE ADS SEND READERS TO LOCAL RETAILERS WHO ARE OFFERING DISCOUNTS ON DIET PEPSI FRITOLAY SNACKS OR OTHER FOOTBALLWATCHING FARE THE ARRANGEMENT ALLOWS APPROXIMATELY 1000 PARTICIPATING RETAILERS TO MAKE THEIR OWN PROMOTIONAL OFFERS THE ABILITY TO BE THIS FLEXIBLE IS BIG NEWS IN OUR SYSTEM SAID JEFF CAMPBELL PEPSI SENIOR VICE PRESIDENT IN ADDITION PEPSI IS OFFERING A FREE TWOLITER BOTTLE OF DIET PEPSI TO PEOPLE WHO BUY TWO 12PACKS OF PEPSICOLA SOFT DRINKS THAT OFFER APPEARS ON PACKAGES A TELEVISION COMMERCIAL FROM OMNICOM GROUP'S BBDO REMINDS CONSUMERS TO STOCK UP SEVERAL HARDCORE FOOTBALL FANS ARE PICTURED IN COUCHPOTATO HEAVEN KICKING BACK IN CORINTHIAN LEATHER RECLINERS WHILE WATCHING THE GAME ON A 120INCH TV WHEN THE DIET PEPSI RUNS OUT THEY HEAD FOR THE DOOR ENDING UP HAPPILY SQUEEZED ONTO A TINY SOFA IN A BARE APARTMENT WITH A FULL SUPPLY OF DIET PEPSI COCACOLA CO UNVEILED ITS OWN COLA PUSH TIED NOT TO FOOTBALL BUT TO THE WINTER OLYMPIC GAMES IN LILLEHAMMER NORWAY COKE'S COMPUTERANIMATED POLAR BEARS MAKE ANOTHER APPEARANCE IN THE SPOTS CREATED BY HOLLYWOOD TALENT AGENCY CREATIVE ARTISTS AGENCY IN ONE SPOT A BEAR HURTLES DOWN A LUGE COURSE AND GRABS A COKE AT THE FINISH LINE IN ANOTHER A BEAR SAILS OFF A SKI JUMP AND SWIGS A COKE IN MIDAIR IN A HOLIDAY SPOT FOR COKE A BEAR DID A TURN FIGURE SKATING THE OLYMPIC SPOTS ARE SILENT EXCEPT FOR A BRIEF TRUMPET FANFARE AND THE GRUNTING OF THE BEARS A SPOKESWOMAN SAID ADS FOR COKE'S OTHER SOFT DRINKS MAY RUN DURING THE GAMES TOO THE NEW POLAR BEAR COMMERCIALS START RUNNING IN MOVIE THEATERS IN JANUARY A COKE SPOKESWOMAN SAID THEY WILL MAKE THEIR TELEVISION DEBUT FEB 12 DURING CBS'S BROADCAST OF THE OLYMPICS 9312310085 931231 LEISURE & ARTS MEDIA A COLLAGE REVOLUTION BY MARGOT MIFFLIN ON MARCH 2 1992 A MOSAIC OF TORN AND CLIPPED MAGAZINE IMAGES APPEARED ON THE COVER OF TIME MAGAZINE STEPHEN KRONINGER'S ANGRY VOTER WAS A COLLAGE PORTRAIT OF A RAMPAGING EVERYMAN WITH A CLENCHED FIST AND A STAMPING FOOT STEAM BLOWING OUT OF BOTH EARS AND A CAMEO OF GEORGE BUSH IN EACH EYE IT NOT ONLY CAPTURED THE PREELECTION MOOD OF THE NATION BUT MARKED THE ARRIVAL OF PHOTOCOLLAGE INTO THE MAINSTREAM OF CONTEMPORARY ILLUSTRATION MR KRONINGER HAS SPEARHEADED A REVIVAL OF A MEDIUM WITH ROOTS IN THE DADA MOVEMENT OF THE '20S TEN YEARS AGO WHEN HE WAS ONLY 26 YEARS OLD MR KRONINGER WAS ONE OF A HANDFUL OF ARTISTS CUTTING UP MAGAZINES AND DRAWING WITH THE SCRAPS BACK THEN COLLAGE WAS A FRINGE MEDIUM MOST RECENTLY ASSOCIATED WITH PUNK MAGAZINES AND RECORD DESIGN OF THE '70S NOW IT HAS BECOME A STAPLE OF NEWSWEEKLIES AND WOMEN'S FASHION MAGAZINES DURING ITS 3 1/2YEAR HISTORY ILLUSTRATIONPACKED ENTERTAINMENT WEEKLY HAS BEEN A SHOWCASE FOR COLLAGE ART SINCE THE MAGAZINE IS IN LARGE MEASURE A MAGAZINE OF OPINION SAYS FOUNDING ART DIRECTOR MICHAEL GROSSMAN I WANTED TO USE ILLUSTRATION TO EXPRESS A POINT OF VIEW WHICH PHOTOGRAPHY CAN'T ALWAYS DO AND COLLAGE IS OFTEN A GOOD WAY TO COMBINE PHOTOGRAPHIC IMAGES AND COMMENT WHEN TINA BROWN TOOK OVER THE NEW YORKER LAST YEAR SHE GAVE HER ART DIRECTOR CHRIS CURRY LICENSE TO EXPAND THE MAGAZINE'S STABLE OF ILLUSTRATORS SHE ROUNDED UP A HERD OF SCISSORWIELDING COLLAGISTS WHO HAVE PLAYED A MAJOR ROLE IN REMAKING THE LOOK OF THE MAGAZINE THIS GRAPHIC REVOLUTION BEGAN IN THE PAGES OF THE VILLAGE VOICE DURING THE 1980S IT WAS THERE THAT MR KRONINGER SOWED THE SEEDS OF THE COLLAGE RENAISSANCE AND CAUGHT THE FANCY OF THE MANY ART DIRECTORS WHO HAVE SINCE HIRED HIM SINCE THEN IN PIECES SUCH AS OH DOCTOR STOP THE PATIENTS ARE DEAD YEARS ALREADY A HOSPITAL SCENE IN WHICH A DONKEY AND AN ELEPHANT UNDERGO SURGERY WHEN THE OTHER FOLKS GIVE UP THEIRS I'LL GIVE UP MINE FOR AN ARTICLE ON GUN CONTROL AND THIS IS YOUR MIND ON DRUGS A PORTRAIT OF DAN QUAYLE KRONINGER HAS DONE WHAT HE DOES BEST HE EDITORIALIZED USING A COMBINATION OF VISUAL AND VERBAL PUNS I THINK OF HIM AS A POLITICAL COMMENTATOR OR A POLITICAL ANALYST SAYS VOICE ART DIRECTOR ROBERT NEWMAN HE MAKES HIS OWN STATEMENT WHICH RATHER THAN ACCENTUATING THE STORY ACTUALLY ADVANCES IT AN AFFABLE CYNIC AND SPIRITED RACONTEUR WHO GREW UP IN OREFIELD PA MR KRONINGER FIRST TOOK SCISSORS TO PAPER AFTER MOVING TO NEW YORK IN 1979 I WAS DRAWING A LOT THEN AND I HAD ALL THESE PHOTOGRAPHS OUT AND THE DRAWING WASN'T WORKING SO I JUST CUT UP THE PHOTOGRAPHS AND MADE A COLLAGE HE REFLECTS I'M VERY MUCH AWARE OF HAVING COME FROM A SMALL TOWN TO THE CITY WHERE THE MUSIC IS FAST TELEVISION IS FAST MAGAZINES ARE FAST YOU SEE THEM ON THE NEWSSTAND AND THEY'RE GONE IN A WEEK DRAWING AND PAINTING ARE TOO SLOW FOR ME MR KRONINGER'S INTEREST IN POLITICAL SATIRE HIS USE OF TRANSIENT MATERIALS AND HIS FRENETIC AESTHETIC CONFIRM HIS ALLEGIANCE TO THE BERLIN DADAISTS WHO RIDICULED THE GERMAN FASCIST REGIME WITH COLLAGE FOR HIM THE APPEAL OF THE TECHNIQUE LIES IN ITS CAPACITY FOR TURNING THE MEDIA BACK ON THEMSELVES MANY OF THE MATERIALS HE RECYCLES ARE CLIPPED FROM THE VERY MAGAZINES IN WHICH HIS WORK LATER APPEARS BY DECONSTRUCTING AND RECONSTRUCTING MAGAZINE IMAGES MR KRONINGER MAKES THE MEDIA SPEAK FOR HIM TO GET EVERYTHING THAT'S GOING ON IN HIS WORK SAYS CHRISTOPHER MOUNT A CURATOR AT THE MUSEUM OF MODERN ART WHO ORGANIZED A KRONINGER EXHIBITION THERE LAST YEAR YOU REALLY HAVE TO HAVE READ YOUR PAPER THOROUGHLY WHILE MR KRONINGER CAME TO COLLAGE THROUGH ITS HISTORY AS AN ART FORM OTHER ILLUSTRATORS HAVE DISCOVERED AND DEVELOPED IT THROUGH COMPUTER TECHNOLOGY LAST YEAR CARICATURIST STEVE BRODNER BEGAN WORKING ON A MACINTOSH WHICH ALLOWS HIM TO USE MULTIPLE MEDIA IN THE SERVICE OF A SINGLE IMAGE FOR A RECENT THE NEW YORKER PORTRAIT OF THOMAS HOVING FOR EXAMPLE HE PAINTED A WATERCOLOR BODY SCULPTED AND PHOTOGRAPHED A CLAY HEAD FOUND AN OLD PHOTOGRAPH FOR A BACKDROP THEN SCANNED EACH IMAGE INTO THE COMPUTER ASSEMBLING THEM IN A SINGLE SEAMLESS COMPOSITION MR BRODNER IS ONE OF MANY ESTABLISHED ILLUSTRATORS FOR WHOM THIS NEW TECHNOLOGY WAS SIMPLY TOO EXCITING TO PASS UP BUT THE COMPUTER'S STREAMLINED EFFECTS OFTEN ELIMINATE THE HANDMADE ELEMENT PURISTS LIKE MR KRONINGER SAVOR A NEW BREED OF PHOTOGRAPHERTURNEDILLUSTRATOR WHO HANDCUT OR COMPUTERPROCESS THEIR OWN WORK IS MORE INCLINED TO LEAVE THE EDGES ROUGH IT'S CALLED PHOTOILLUSTRATION AS OPPOSED TO PHOTOCOLLAGE SAYS AMY GUIP AN ILLUSTRATOR WHO HAS BEEN PAINTING ON AND CUTTING UP HER OWN PHOTOGRAPHS FOR SIX YEARS IN COLLAGE PEOPLE USE EXISTING IMAGES IN PHOTOILLUSTRATION PEOPLE USE THEIR OWN PHOTOGRAPHS ART DIRECTORS WHO USE PHOTOCOLLAGISTS EVEN GO SO FAR AS TO PROVIDE PICTURES FOR THE CLIPPING WE MIGHT GIVE A PHOTOGRAPHERILLUSTRATOR A PUBLICITY SHOT WE'VE GOTTEN FROM A RECORD COMPANY OR A FILM COMPANY AND ASK THEM TO COMMENT USING IT SAYS MR GROSSMAN COLLAGE IS OFTEN THE SAFEST FORM OF ILLUSTRATION BECAUSE IT INCLUDES A PHOTOGRAPH SO NO ONE IS GOING TO SAY I DON'T RECOGNIZE THAT PERSON BUT IT CAN ALSO BE A HEADACHE FOR AN ART DIRECTOR IT'S A LOT OF EXTRA WORK BECAUSE WE HAVE TO CLEAR EVERY ONE OF THOSE PICTURES SAYS RUDY HUGLAND OF TIME REFERRING TO THE SOURCE PHOTOGRAPHS ARTISTS SUCH AS MR KRONINGER AND RECENT COVER ARTIST EDMUND GUY CANNIBALIZE EDITORS LOVE COLLAGE BECAUSE IF YOU HAVE A DIFFICULT STORY TO TELL COLLAGE MAKES IT EASY TO THROW EVERYTHING IN AND COVER ALL THE BASES KRONINGER ISN'T THE FIRST TO USE IT BUT HIS INGENUITY AND WIT HAVE MADE PEOPLE LOOK AT IT AGAIN MS MIFFLIN IS A FREELANCE WRITER BASED IN NYACK NY 9312310084 931231 FOREIGN EXCHANGE DOLLAR CLIMBS AGAIN AMID OPTIMISM IT WILL RALLY WELL INTO THE NEW YEAR BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR CONTINUED TO CLIMB AGAINST MOST EUROPEAN CURRENCIES YESTERDAY AS INVESTORS BET THAT THE DOLLAR WILL RING IN THE NEW YEAR WITH A LENGTHY RALLY BUT JAPANESE EXPORTERS REMAINED HEAVY SELLERS OF DOLLARS FOR YEN PINNING THE US CURRENCY DOWN UNDER A KEY LEVEL AT 11200 YEN LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17353 MARKS UP FROM 17275 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11183 YEN UP FROM 11174 YEN STERLING WAS TRADING AT 14762 DOWN FROM 14775 THERE WAS NO TRADING IN TOKYO ON FRIDAY BECAUSE OF A HOLIDAY AFTER A SURPRISING THREEPFENNIG GAIN ON WEDNESDAY SOME TRADERS HAD EXPECTED THE DOLLAR TO SLIDE BACK YESTERDAY AS PLAYERS TOOK PROFIT ON THE MOVE I THINK WHAT WE'RE SEEING IS PEOPLE TRYING TO GET A JUMP ON THE NEW YEAR SAID CARL AMENDOLA A VICE PRESIDENT AT BAYERISCHE HYPOTHEKENUND WECHSELBANK AG IN NEW YORK MR AMENDOLA AND OTHER TRADERS NOTED THAT A WIDE RANGE OF ECONOMIC FACTORS ALL POINT TO A HIGHER DOLLAR NEXT YEAR INCLUDING EXPECTATIONS OF STRONG ECONOMIC GROWTH IN THE US COMPARED WITH WEAK PERFORMANCE IN GERMANY AND THE VIEW THAT GERMAN INTEREST RATES WILL FALL SUBSTANTIALLY WHILE THOSE IN THE US COULD RISE MORE EVIDENCE FOR THAT SCENARIO EMERGED YESTERDAY WITH ANOTHER ROUND OF SURPRISINGLY POSITIVE US ECONOMIC DATA SALES OF NEW SINGLEFAMILY HOUSES ROSE 113 IN NOVEMBER TO AN ANNUAL RATE OF 807000THE HIGHEST RATE IN MORE THAN 7 1/2 YEARS NEW CLAIMS FOR US UNEMPLOYMENT INSURANCE MEANWHILE FELL SHARPLY TO THE LOWEST LEVEL SINCE FEBRUARY 1989 THE DATA ALONG WITH OTHER ROSY REPORTS ISSUED EARLIER IN THE WEEK HAVE HELPED TO DISPEL EARLIER WORRIES THAT THE US ECONOMY COULD STUMBLE IN THE FIRSTQUARTER OF NEXT YEAR ALLOWING TRADERS TO BE MORE CONFIDENT IN THEIR DOLLAR BUYING WE EXPECT SOME CARRYTHROUGH INTO THE FIRSTQUARTER FROM THE STRONG FOURTHQUARTER OF 1993 MR AMENDOLA SAID STILL DEALERS CAUTIONED THAT WITH TRADING RELATIVELY LIGHT BECAUSE OF THE HOLIDAY SEASON ONLY SMALL NUMBERS OF ORDERS ARE NEEDED TO SEND THE DOLLAR HIGHER THE MOVE HAS BEEN EXAGGERATED BY THE THIN MARKET CONDITIONS SAID RICH SHIMOKAWA FOREIGNEXCHANGE MANAGER AT SUMITOMO BANK LTD IN NEW YORK MR SHIMOKAWA NOTED THAT THE DOLLAR'S ABILITY TO ADVANCE IS LIMITED BY LINGERING CAUTION FOLLOWING LAST WEEK'S REMARKS BY US TREASURY SECRETARY LLOYD BENTSEN WHO SAID THAT JAPAN ISN'T MEETING ITS COMMITMENT TO LOWER ITS TRADE SURPLUS TRADERS HAVE INTERPRETED THE STATEMENT AS A SIGN THAT THE US DOESN'T WANT THE DOLLAR TO RISE TOO SHARPLY AGAINST THE YEN FOR THE TIME BEING THERE MIGHT BE SOME PRESSURE FROM THE US IF THE DOLLAR RISES TOWARD 115 YEN MR SHIMOKAWA SAID MEANWHILE THE MARK ALSO WEAKENED WITHIN EUROPE FALLING UNDER A CLOSELY WATCHED LEVEL AT 340 FRENCH FRANCS AND ALLOWING THE DANISH KRONE TO SLIP BACK INTO ITS OLD TRADING RANGE WITHIN THE EUROPEAN EXCHANGE RATE MECHANISM 9312310082 931231 BUSINESS BRIEF IES INDUSTRIES INC TWO UTILITY UNITS TO MERGE TO FORM IES UTILITIES INC IES INDUSTRIES INC SAID TWO OF ITS UTILITY UNITS IOWA ELECTRIC LIGHT & POWER CO AND IOWA SOUTHERN UTILITIES CO WILL MERGE TO FORM IES UTILITIES INC EFFECTIVE TODAY IES INDUSTRIES IS A UTILITIES HOLDING COMPANY BASED IN CEDAR RAPIDS IOWA THE COMBINATION IS EXPECTED TO YIELD 15 MILLION IN ANNUAL SAVINGS WITHIN FIVE YEARS THE COMPANY SAID PRIMARILY FROM LOWER COSTS FOR ELECTRIC GENERATION AND TRANSMISSION THE COMBINATION OF THE TWO UNITS WAS CLEARED BY THE FEDERAL ENERGY REGULATORY COMMISSION EARLIER THIS MONTH 9312310081 931231 TECHNOLOGY & MEDICINE FEDERAL AGENTS TURN TO INTERNET IN BOMB PROBE WASHINGTON FEDERAL AGENTS HAVE EXPANDED THE SEARCH FOR THE SOCALLED UNIVERSITY BOMBER TO THE INTERNET THE GLOBAL COMPUTER NETWORK THE ASSOCIATED PRESS REPORTED THE UNABOM TASK FORCE IS SEEKING THE PERSON RESPONSIBLE FOR 14 BOMBINGS SINCE 1978 IN WHICH ONE MAN WAS KILLED AND 23 PEOPLE WERE INJURED MOST OF THE BOMBINGS WERE TARGETED AT THE COMPUTER INDUSTRY THE AIRCRAFT AND AIRLINE INDUSTRIES AND UNIVERSITIES INTERNET USERS ARE PRECISELY THE TYPE OF INDIVIDUALS THAT TO DATE HAVE BEEN RECIPIENTS OF EXPLOSIVE DEVICES ATTRIBUTED TO UNABOM THE AP QUOTED FBI SPECIAL AGENT WILLIAM TAFOYA AS SAYING IN A NOTICE POSTED ON THE COMPUTER NETWORK YOU ARE NOT BEING ASKED TO PLACE YOURSELF IN HARM'S WAY YOU ARE ENCOURAGED TO COME FORWARD IF YOU HAVE INFORMATION THE FBI OFFERED A 1 MILLION REWARD FOR INFORMATION LEADING TO CONVICTION OF WHOEVER SENT THE DIABOLICAL DEVICES THE DOCUMENTS ON THE NETWORK GIVE A DESCRIPTION OF ALL 14 BOMBINGS AND LIST CLUES IN THE CASE ACCORDING TO THE POSTING ONE OF THE CLUES APPEARS TO BE A NOTE POSSIBLY WRITTEN BY THE BOMBER AS A REMINDER TO MAKE A PHONE CALL CALL NATHAN RWED 7PM' THE TASK FORCE THE POSTING SAYS SPECULATES THAT NATHAN R MAY HAVE RECEIVED A TELEPHONE CALL FROM THE BOMBER ON A WEDNESDAY PRIOR TO THE JUNE 1993 BOMBINGS WHICH INCLUDED AN ATTACK ON A YALE UNIVERSITY COMPUTER SCIENTIST THE INTERNET GOT STARTED AS A WAY TO LINK UNIVERSITIES DOING DEFENSE RESEARCH BUT THE NETWORK HAS EXPANDED INTO A GLOBAL ONLINE COMMUNITY SINCE PRESIDENT CLINTON TOOK OFFICE GOVERNMENT AGENCIES HAVE SCRAMBLED TO MAKE THEIR INFORMATION AVAILABLE ON THE INTERNET THE FBI USED A COMPUTER OWNED BY THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION TO POST THE DOCUMENTS WHICH ARE ACCESSIBLE ON THE INTERNET AT NAICNASAGOV 9312310079 931231 AMEDEO CLOSES PALACE PURCHASE NEW YORK AMEDEO HOTELS LP CLOSED THE PREVIOUSLY ANNOUNCED PURCHASE OF THE 1000ROOM NEW YORK PALACE HOTEL FORMERLY THE HELMSLEY PALACE FOR MORE THAN 200 MILLION THE HOTEL WAS THE SUBJECT OF A LEGAL BATTLE BETWEEN LEONA AND HARRY HELMSLEY THE PROPERTY'S GENERAL PARTNERS AND A GROUP OF LIMITED PARTNERS WHO ACCUSED THE HELMSLEYS OF MISMANAGEMENT A COURTAPPOINTED ARBITRATION PANEL NAMED A RECEIVER TO SELL THE PROPERTY INTERSTATE HOTELS WHICH HAS MANAGED THE NEW YORK PALACE FOR 18 MONTHS SAID AMEDEO OWNED BY THE BRUNEI ROYAL FAMILY WAS REPRESENTED BY BUSINESS ADVISORY LTD AN ASIAN FINANCIAL ADVISER FIRM 9312310078 931231 EXBOND TRADER FOR SALOMON TO PAY 300000 BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THOMAS MURPHY A FORMER MANAGING DIRECTOR AND HEAD BOND TRADER AT SALOMON BROTHERS INC AGREED TO PAY 300000 IN CIVIL PENALTIES TO SETTLE SECURITIES AND EXCHANGE COMMISSION CHARGES THAT HE SUBMITTED FALSE BIDS IN TREASURY BOND AUCTIONS HE WAS RESPONSIBLE FOR ASSISTING SENIOR TRADER PAUL MOZER WHO RAN SALOMON'S GOVERNMENTBOND DESK WHEN THE ALLEGED VIOLATIONS OCCURRED MR MURPHY WHO NEITHER ADMITTED NOR DENIED THE SEC'S CIVIL CHARGES AGREED TO COOPERATE WITH THE AGENCY IN ITS CONTINUING LAWSUIT AGAINST MR MOZER THE AGENCY SAID MR MURPHY IS THE LATEST OF SEVERAL FORMER SALOMON OFFICIALS TO SETTLE SEC CHARGES IN CONNECTION WITH THE FIRM'S TREASURY BOND SCANDAL LAST YEAR THREE FORMER SENIOR SALOMON EXECUTIVES INCLUDING FORMER CHAIRMAN JOHN GUTFREUND SETTLED CHARGES THAT THEY FAILED TO SUPERVISE SUBORDINATES ADEQUATELY IN CONNECTION WITH THE SCANDAL SALOMON ITSELF SETTLED RELATED SEC AND JUSTICE DEPARTMENT CHARGES IN 1992 PAYING 290 MILLION IN FINES AND RESTITUTION IN A SEPARATE SEC ADMINISTRATIVE PROCEEDING MR MURPHY 35 YEARS OLD WAS PERMANENTLY BARRED FROM BIDDING IN TREASURY AUCTIONS THIS IS BELIEVED TO BE THE FIRST TIME THE SEC HAS BARRED ANYONE PERMANENTLY FROM BIDDING IN TREASURY AUCTIONS MR MURPHY ALSO WAS BARRED FROM ASSOCIATING WITH ANY BROKER OR DEALER ALTHOUGH HE MAY REAPPLY FOR ASSOCIATION IN A NONPROPRIETARY NONSUPERVISORY CAPACITY AFTER TWO YEARS PROVIDING HE SHOWS HE WILL BE ADEQUATELY SUPERVISED AFTER FIVE YEARS HE MAY APPLY FOR ASSOCIATION WITH A BROKER OR DEALER IN A PROPRIETARY OR SUPERVISORY ROLE THE SETTLEMENT WAS FILED IN FEDERAL COURT IN NEW YORK AND ANNOUNCED IN WASHINGTON NEITHER MR MURPHY NOR HIS ATTORNEY COULD BE REACHED FOR COMMENT THE SEC ALLEGED IN A CIVIL LAWSUIT FILED EARLY LAST DECEMBER THAT MR MURPHY SUBMITTED THREE FALSE BIDS IN TREASURY AUCTIONS AND CAUSED SALOMON TO CREATE NUMEROUS FALSE BOOKS AND RECORDS IN CONNECTION WITH THE BIDS AT THAT TIME THE AGENCY ALSO ALLEGED THAT MR MOZER WAS RESPONSIBLE FOR THE SUBMISSION OF EIGHT FALSE BIDS TOTALING 135 BILLION AND FOR ASSORTED RECORDKEEPING VIOLATIONS SALOMON FIRED MESSRS MOZER AND MURPHY AFTER THE TREASURYBOND SCANDAL BROKE OPEN IN AUGUST 1991 MR MOZER IS CONTESTING THE SEC'S CHARGES SEC ATTORNEY KEVIN O'ROURKE SAID MR MOZER'S TRIAL IS SCHEDULED TO BEGIN IN FEDERAL COURT IN NEW YORK JUNE 15 IN A PARALLEL CRIMINAL CASE MR MOZER EARLIER THIS MONTH WAS SENTENCED TO FOUR MONTHS IN PRISON AND FINED 30000 AFTER PLEADING GUILTY TO TWO COUNTS OF LYING TO FEDERAL OFFICIALS IN CONNECTION WITH THE TREASURY BIDDING SCANDAL 9312310077 931231 PRUDENTIAL UNIT STRIPS SCHECTER OF LEGAL DUTIES GENERAL COUNSEL LEAVES POST AMID WIDENING INQUIRY INTO PARTNERSHIP DEALS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC RELIEVED ITS GENERAL COUNSEL OF HIS LEGAL DUTIES AMID A WIDENING INVESTIGATION OF THE BIG BROKERAGE FIRM THE DETHRONING OF LOREN SCHECHTER WHO HAS BEEN PRUDENTIAL'S GENERAL COUNSEL SINCE 1982 STUNNED WALL STREET EXECUTIVES MR SCHECHTER IS AMONG THE FEW SENIOR PRUDENTIAL EXECUTIVES STILL AROUND FROM THE 1980S WHEN THE FIRM BECAME EMBROILED IN LIMITEDPARTNERSHIP PROBLEMS THAT IT STILL IS FIGHTING IN AN INTERNAL MEMO PRUDENTIAL SAID MR SCHECHTER WAS RELIEVED OF HIS DIRECT RESPONSIBILITIES AS GENERAL COUNSEL BECAUSE OF THE UNFORTUNATE AND UNFAIR PUBLICITY AND INNUENDO IN THE RECENT PRESS MEANWHILE THE US ATTORNEY'S OFFICE IN MANHATTAN PLANS TO SEND OUT SUBPOENAS WITHIN THE NEXT MONTH TO SEVERAL SENIOR PRUDENTIAL SECURITIES EXECUTIVES INCLUDING MR SCHECHTER AS PART OF AN INVESTIGATION OF THE BROKERAGE FIRM'S PARTNERSHIP PRACTICES PEOPLE FAMILIAR WITH THE MATTER SAY A SUBPOENA IS ONLY A REQUEST FOR INFORMATION IT DOESN'T IMPLY WRONGDOING THE MEMO SAID THE MOVE WAS REQUESTED BY MR SCHECHTER IT IS LOREN'S BELIEF THAT HIS ABILITY TO SERVE THE LEGAL AND REGULATORY NEEDS OF THE FIRM HAVE NOW BEEN PUBLICLY COMPROMISED AND THUS HIS ONGOING EFFECTIVENESS AS THE FIRM'S PRIMARY LEGAL SPOKESMAN UNDERCUT BUT PEOPLE FAMILIAR WITH THE MATTER SAY THE MOVE WAS FORCED BY HARDWICK SIMMONS PRUDENTIAL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER WHO SIGNED THE MEMO NEITHER MR SCHECHTER MR SIMMONS NOR A PRUDENTIAL SPOKESMAN COULD BE REACHED TO COMMENT ON THE MOVE MR SCHECHTER WILL CONTINUE TO HOLD THE TITLE OF EXECUTIVE VICE PRESIDENT AND PROVIDE THE FIRM WITH SENIOR COUNSEL THE MEMO SAID I STRONGLY BELIEVE THAT LOREN HAS ACTED HONORABLY IN ALL HIS DEALINGS WITH THE LIMITEDPARTNERSHIP ISSUE AND THAT THE US ATTORNEY'S OFFICE WILL TAKE NO ACTION ONCE THE FACTS BECOME CLEAR MR SIMMONS SAID IN THE MEMO THE ACTION COMES AS PROSECUTORS WANT TO EXPLORE WHAT INFORMATION MR SCHECHTER HAS ABOUT ANY WRONGDOING IN THE BROKERAGE FIRM'S LIMITEDPARTNERSHIP GROUP IN THE 1980S PROSECUTORS SPECIFICALLY ARE EXAMINING WHAT ROLE THE LEGAL DEPARTMENT WHICH MR SCHECHTER HEADS HAD IN REVIEWING AND APPROVING PROSPECTUSES SALES DOCUMENTS AND OTHER MARKETING MATERIALS INVOLVING THE PARTNERSHIPS PRUDENTIAL SALES DOCUMENTS URGED BROKERS TO STRESS HIGH RETURNS AND LOW RISK IN PEDDLING THE PARTNERSHIPS THE VALUE OF THESE DEALS HAS PLUNGED AMID WEAK REALESTATE AND ENERGY MARKETS AND TAXLAW CHANGES SO FAR MR SCHECHTER AND THE OTHER SENIOR PRUDENTIAL EXECUTIVES ARE SOCALLED SUBJECTS NOT TARGETS OF THE INVESTIGATION THE PEOPLE SAID THAT MEANS THE OFFICIALS ARE LIKELY TO BE ASKED FOR INFORMATION THAT COULD IMPLICATE FORMER COLLEAGUES IN THE PARTNERSHIP GROUP AT THE SAME TIME PROSECUTORS APPARENTLY ARE PAYING LITTLE HEED TO AN INTERNAL PRUDENTIAL INQUIRY THAT CLEARED MR SCHECHTER OF ANY WRONGDOING THE PEOPLE SAID PRUDENTIAL SAID THE INQUIRY CONDUCTED TWO YEARS AGO CONCLUDED THAT MR SCHECHTER HAD RAISED ALL THE NECESSARY RED FLAGS CONCERNING POTENTIAL PROBLEMS IN THE PARTNERSHIP UNIT PROSECUTORS ALREADY HAVE BEEN QUESTIONING FORMER PRUDENTIAL BROKERS AND OTHERS SEEKING EVIDENCE OF WRONGDOING BY SEVERAL TOP PRUDENTIAL OFFICIALS IN SETTING UP AND SELLING PARTNERSHIPS THE CRIMINAL INVESTIGATION LAUNCHED SEVERAL MONTHS AGO HAS SO FAR CENTERED ON THE ACTIVITIES OF PRUDENTIAL'S PARTNERSHIP GROUP PARTICULARLY JAMES DARR ITS FORMER PARTNERSHIP CHIEF LAWYERS FOR MR DARR HAVE MAINTAINED THAT THEY ARE NOT AWARE OF ANY INVESTIGATION OF THEIR CLIENT THE PLANNED QUESTIONING OF MR SCHECHTER WIDENS THE SCOPE OF THE INVESTIGATION INTO PRUDENTIAL THE NATION'S FOURTHLARGEST BROKERAGE FIRM IT COMES AS FEDERAL REGULATORS SEEK TO PUT MORE PRESSURE ON THE CHIEF LEGAL OFFICERS OF BIG BROKERAGE FIRMS TO BEAR RESPONSIBILITY FOR SUPERVISING WAYWARD EMPLOYEES THE SCRUTINY OF MR SCHECHTER'S ACTIVITIES IS PARTICULARLY SENSITIVE FOR PRUDENTIAL BECAUSE HE WAS THE POINT MAN IN NEGOTIATING A MAJOR PARTNERSHIP SETTLEMENT WITH FEDERAL AND STATE REGULATORS IN OCTOBER IN THAT CASE THE SECURITIES AND EXCHANGE COMMISSION AND 49 STATESECURITIES REGULATORS ACCUSED PRUDENTIAL OF WIDESPREAD FRAUD IN SELLING ABOUT 8 BILLION OF PARTNERSHIPS IN THE 1980S IN SETTLING THE CASE PRUDENTIAL AGREED TO PAY AT LEAST 330 MILLION IN A RESTITUTION FUND FOR INVESTORS MANY INVESTORS HAVE COMPLAINED THAT THERE WERE MISLED ABOUT THE RISKS AND RETURNS OF THE PARTNERSHIPS IN AN INTERVIEW WEDNESDAY NIGHT MR SCHECHTER SAID I INTEND TO COOPERATE FULLY AND LOOK FORWARD TO GETTING THE OPPORTUNITY TO SIT DOWN WITH THEM AND TELL THEM WHAT I KNOW WILLIAM AHEARN A PRUDENTIAL SPOKESMAN SAID LATE WEDNESDAY WE HAVE BEEN COOPERATING WITH THE US ATTORNEY BUT FROM THE FIRM'S STANDPOINT THERE REALLY HAVEN'T BEEN ANY NEW DEVELOPMENTS PRUDENTIAL MAINTAINS THAT THE EMPLOYEES RESPONSIBLE FOR ITS 1980S PARTNERSHIP PROBLEMS ARE NO LONGER WITH THE FIRM KENNETH VIANALE AN ASSISTANT US ATTORNEY HANDLING THE CASE DECLINED TO COMMENT ON IT SEVERAL CURRENT AND FORMER TOP EXECUTIVES INCLUDING MR SCHECHTER GEORGE BALL FORMER PRUDENTIAL SECURITIES CHIEF EXECUTIVE OFFICER FRANK GIORDANO A FORMER CHIEF OF THE FIRM'S PARTNERSHIP GROUP AND NOW CHIEF COUNSEL FOR ITS MUTUALFUND OPERATIONS AND JAMES KELSO CURRENT CHIEF OF THE PARTNERSHIP GROUP HAVE BEEN ADVISED BY PROSECUTORS TO RETAIN LAWYERS IN THE MATTER THE PEOPLE SAID PROSECUTORS HAVE ASKED THAT OFFICERS GET SEPARATE COUNSEL WHICH WE ARE DOING A SENIOR PRUDENTIAL EXECUTIVE SAID FRANK PUTZELL III A LAWYER IN NEW YORK REPRESENTING MR GIORDANO DECLINED TO COMMENT AS DID ALAN LEVINE A LAWYER AT KRONISH LIEB WEINER & HELLMAN REPRESENTING MR KELSO MR BALL'S LAWYERS HAVE SAID THAT HE HAD NO KNOWLEDGE OR INVOLVEMENT IN ANY WRONGDOING IF IN FACT THERE WAS ANY PEOPLE FAMILIAR WITH THE CRIMINAL CASE SAID THAT AMONG THOSE WHO AREN'T ACTIVELY BEING INVESTIGATED AT THIS POINT ARE MR BALL AN INDIVIDUAL FAMILIAR WITH THE CASE SAID HOWEVER THAT THE NORM IS TO WORK FROM THE BOTTOM UP THE US ATTORNEY'S OFFICE ALREADY IS EXPLORING POSSIBLE INDICTMENTS AGAINST THE BROKERAGE FIRM AND ITS PARENT PRUDENTIAL INSURANCE CO OF AMERICA 9312310076 931231 INDUSTRY FOCUS EUROPEAN LUXURY FOODS GET TASTE OF PRICE COMPETITION RETAILERS TURN TO DISCOUNTS CHEAPER VERSIONS OF TRADITIONAL TREATS BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL EUROPEAN MARKETERS OF LUXURY FOODS ARE LEARNING A BITTER LESSON THIS HOLIDAY SEASON NO BRAND IS IMMUNE TO PRICE COMPETITION INCLUDING THE MOST PRESTIGIOUS OF PRODUCTS CONSUMERS STILL CRAVE FANCY FOODS BUT THE CONTINENT'S ECONOMIC SLUMP IS WHETTING THEIR APPETITE FOR LESSEXPENSIVE VERSIONS ACROSS EUROPE SALMON CAVIAR TRUFFLES GOOSELIVER PATE AND CHAMPAGNE ARE SELLING AT TRADITIONAL YEAREND HIGH VOLUMES BUT PROFIT MARGINS ARE SQUEEZED TO AN ALLTIME LOW AT THE LAST MINUTE PEOPLE DECIDE THEY WANT TO CELEBRATE SAYS JEANCLAUDE CROCHARD GENERAL MANAGER AT FAUCHON THE PARISIAN FOOD EMPORIUM BUT THE 10 GROWTH RATES OF A FEW YEARS AGO ARE FINISHED LIKE MOST UPSCALE FOOD RETAILERS MR CROCHARD SAYS EVEN CONSUMERS OF LUXURY GOODS ARE CHANGING THEIR BUYING BEHAVIOR IN THE RECESSION PEOPLE ARE CALLING ABOUT PRICES BEFORE COMING TO THE STORE HE OBSERVES THEY DON'T GIVE IN TO IMPULSES AND THINK MORE BEFORE BUYING CHRISTIENNE BARBAT A DIRECTOR AT ONE OF CAVIAR VOLGA SA'S TWO STORES IN PARIS SAYS MORE CUSTOMERS NOW ATTEND THE STORE'S CAVIAR TASTINGS BEFORE FORKING OUT 9760 FRANCS 1662 FOR A KILOGRAM 22 POUNDS OF HIGHQUALITY BELUGA CAVIAR OR 3920 FRANCS FOR THE SAME AMOUNT OF THE SMALLER ZEBRUGA STURGEON EGGS MOST IMPORTANT HOWEVER CONSUMERS ARE LOOKING FOR LOWER PRICES THERE IS A BIG RUSH ON CHEAP DISCOUNT BRANDS SAYS YVES LOMBARD DIRECTOR OF THE FRENCH UNION OF CHAMPAGNE PRODUCERS BUT THE BIG BRANDS SELL TOO UNDER THE CONDITION THAT THEY LOWER THEIR PRICES BY THE END OF NOVEMBER FRENCH CHAMPAGNE CONSUMPTION HAD RISEN 3 OVER YEAREARLIER LEVELS BUT AS OF SEPT 30 AVERAGE PRICES ALREADY HAD DROPPED 16 BELOW THOSE IN THE FIRST THREE QUARTERS OF 1992 PEOPLE ARE REALLY BUYING AS MUCH AS EVERY YEAR CONFIRMS A SPOKESMAN FOR KAUFHOF AG A GERMAN DEPARTMENTSTORE CHAIN WITH LARGE DELICATESSEN SECTIONS BUT OF COURSE YOU HAVE TO DO SOMETHING ABOUT PRICES WE'RE CALCULATING WITH A SHARPER PENCIL NOW DURING THE YEAREND SEASON KAUFHOF IS USING BOTH COLORFUL ADVERTISING INSERTS IN LOCAL NEWSPAPERS AND LOWER PRICES TO LURE CHOOSY CONSUMERS TO ITS STORES A BOTTLE OF VEUVE CLIQUOT CHAMPAGNE FOR INSTANCE COSTS 3798 MARKS 2197 AND KAUFHOF THINKS CUSTOMERS NOTICE THE DIFFERENCE BETWEEN THAT AND THE REGULAR PRICE OF 40 MARKS PEOPLE ARE QUITE AWARE OF WHAT THINGS COST NOW THE SPOKESMAN EXPLAINS SIMILARLY AT A TYPICAL BELGIAN SUPERMARKET 14 OF THE STORE'S 20 CHAMPAGNE BRANDS ARE ON SALE AND SO ARE SMOKED SALMON CANDIED CHESTNUTS SNAILS AND CHILLED SALMON EGGS RETAILERS WILL GET A BREAK IN AT LEAST SOME PRODUCT AREAS BECAUSE SOME MANUFACTURERS ARE KEEPING PRICES LOW THEMSELVES FORTUNATELY CEREAL PRICES CAME DOWN AND ALLOWED FOIEGRAS PRODUCERS TO HOLD PRICES STABLE SAYS JEANPAUL SINQUIN AN ECONOMIST AT THE FRENCH INSTITUTE FOR THE POULTRY INDUSTRY AS A RESULT THE INSTITUTE EXPECTS FRENCH CONSUMERS TO HOLD UP THEIR ANNUAL CONSUMPTION OF 9000 TONS OF GOOSELIVER PATE A THIRD OF WHICH IS BOUGHT AROUND CHRISTMAS BECAUSE THE PRODUCT IS PART OF TRADITIONAL FRENCH CHRISTMAS CUISINE FOIEGRAS SALES IN FRANCE ARE CONSIDERED MORE IMMUNE TO CONSUMERS' SHRINKING WALLETS THAN OTHER GOURMET FOODS IN FRANCE YOU HAVE TO HAVE IT AT CHRISTMAS KIND OF LIKE PLUM PUDDING IN ENGLAND SAYS CHRISTOPHE GENSON AT ROUGIE A PATEMANUFACTURING SUBSIDIARY OF SUEZ SA MARKETING CAMPAIGNS TO PROMOTE GOOSE AND DUCKLIVER PATE AS FOODS FOR THE REST OF THE YEAR ARE PAYING OFF AS WELL IN THE FIRST NINE MONTHS OF 1993 SALES ROSE 27 FROM A YEAR EARLIER ACCORDING TO FRANCE'S FOIE GRAS PRODUCERS' ASSOCIATION GERMAN CONSUMERS ALSO ARE TURNING TO TRADITIONAL TREATS ALOIS DALLMAYR KG WHICH OPERATES A MAILORDER BUSINESS AND A FANCYFOOD STORE IN MUNICH REPORTS STRONG DEMAND FOR VENISON AND DOMESTIC SPARKLING WINE WHILE EXPENSIVE EXOTIC DELICACIES ARE FALLING OUT OF FAVOR A COMPANY SPOKESWOMAN SAYS PRAGMATIC CHRISTMAS SHOPPERS ALSO BOUGHT A LOT OF GIFT CERTIFICATES FOR AROUND 100 MARKS THIS YEAR RATHER THAN BUYING SOMETHING OUTRAGEOUSLY EXPENSIVE WHERE ONE DOESN'T KNOW IF PEOPLE WILL LIKE IT AT AUSTRIAN RETAILER JULIUS MEINL AG THIS YEAR'S BESTSELLING FOOD HAS BEEN SALMON BUT SALES DIRECTOR HEINRICH LAMM NOTES THAT AUSTRIAN SPARKLING WINES ARE OUTSELLING FRENCH CHAMPAGNES AND LIGHT ITALIAN SPARKLING WINES ALSO ARE WINNING OVER AUSTRIAN PALATES ESPECIALLY WITH CHAMPAGNES EVERYTHING IS PRICE MR LAMM EXPLAINS REAPING THE BENEFITS OF CONSUMERS' NEW PRICE CONSCIOUSNESS ARE DISCOUNT STORES THAT OFFER HIGHCLASS FOODS FOR LOWER PRICES AND DISCOUNT BRANDS FOR EVEN LESS SWISS DISCOUNT CHAIN DENNER AG IS SELLING IRANIAN CAVIAR AT ROUGHLY HALF THE PRICE CHARGED IN A SPECIALTY STORE AND MANAGING DIRECTOR ALEXANDR GALLIKER SAYS STORE SHELVES ARE PRACTICALLY EMPTY SIMILARLY BRANDED CHAMPAGNE COSTS BETWEEN 20 AND 25 LESS THAN IN WINE STORES EVEN RESTAURANTS BUY WITH US MR GALLIKER SAYS PROUDLY HE ADDS THAT THE STORE'S OWN GOLLIGNY LABEL IS THE THIRDBESTSELLING BRAND IN HIS STORE IN FRANCE SIMILAR CHEAP STORE BRANDS ALREADY HOLD A 50 SHARE OF THE CHAMPAGNE MARKET ACCORDING TO THE CHAMPAGNEPRODUCERS UNION INDUSTRY EXPERTS HAVE MIXED VIEWS ON DISCOUNTERS' CONQUEST OF THE GOURMETFOOD SECTOR SOME CLAIM THAT THE AVAILABILITY OF LUXURY FOODS IN LESSRITZY STORES INCREASES THEIR POPULARITY WITH THE AVERAGE CONSUMER EVEN IF THE PRODUCTS ARE OF LOWER QUALITY LIKE MOUSSE DE FOIE GRAS A PATE WITH A LOWER FOIEGRAS CONTENT FAUCHON'S MR CROCHARD MAINTAINS THE CHEAP RIVALS DON'T THREATEN SALES OF HIGHQUALITY SPECIALTIES BUT STEAL SALES FROM OTHER STANDARD PRODUCT AREAS ALSO SOLD AT FAUCHON THE PROBLEM IS THAT CLIENTS GO TO DISCOUNTERS TO DO THEIR MAIN SHOPPING AND ONLY COME TO US IN THE AFTERNOON HE SAYS BUT MOST IN THE INDUSTRY AGREE THAT ECONOMIC RECOVERY WON'T BRING BACK CONSUMERS' READINESS TO INDULGE AT ANY PRICE THESE CONSUMPTION CHANGES ARE STRUCTURAL NOT CYCLICAL SAYS LOUISREGIS AFFRE DIRECTOR OF THE FRENCH FEDERATION OF WINE AND SPIRITS EXPORTERS THE ECONOMIC CRISIS PUSHED THESE CHANGES FORWARD BUT AFTER THE RECESSION CONSUMERS STILL WON'T BE THE SAME AS BEFORE HE PREDICTS 9312310075 931231 BUSINESS BRIEF GREYHOUND LINES INC BUS COMPANY NEGOTIATES 186 MILLION IN FINANCING GREYHOUND LINES INC SAID IT NEGOTIATED 186 MILLION IN NEW FINANCING INCLUDING A BANK LINE OF CREDIT AND THE SALE AND LEASEBACK OF 319 BUSES THE DALLAS BUS COMPANY SAID THE FINANCING WILL HELP PAY FOR CAPITAL EXPENDITURES SUCH AS THE PURCHASE OF NEW BUSES AND MODERNIZATION OF TERMINALS AND SALES OUTLETS THE BANK REVOLVING LINE OF CREDIT TOTALS 116 MILLION AND WAS UNDERWRITTEN BY BANKERS TRUST CO A UNIT OF BANKERS TRUST NEW YORK CORP IT REPLACES A 116 MILLION BANK LINE OF CREDIT THE BUS SALE AND LEASEBACK ENTERED INTO WITH A NATIONSBANK CORP UNIT WILL GIVE GREYHOUND 70 MILLION GREYHOUND LINES INC REPLACED A 71 MILLION REVOLVING LINE OF CREDIT WITH NEW FINANCING AN ARTICLE FRIDAY INCORRECTLY REPORTED THAT THE OLD CREDIT LINE WAS 116 MILLION 9312310074 931231 MONEYFUND ASSETS DECLINED 922 BILLION DURING LATEST WEEK WASHINGTON MONEYMARKET MUTUALFUND ASSETS SLUMPED 922 BILLION TO 58277 BILLION FROM A REVISED 59199 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 653 RETAIL MONEYMARKET MUTUAL FUNDS FELL 268 BILLION TO 39299 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 406 TAXABLE MONEYMARKET FUNDS FELL 135 BILLION TO 30605 BILLION ASSETS OF 247 RETAIL TAXEXEMPT FUNDS SLIPPED 133 BILLION TO 8694 BILLION ASSETS OF THE 275 INSTITUTIONAL MONEYMARKET FUNDS DROPPED 655 BILLION TO 18978 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 221 TAXABLE MONEYMARKET FUNDS FELL 606 BILLION TO 16785 BILLION ASSETS OF 54 TAXEXEMPT FUNDS FELL 4848 MILLION TO 2193 BILLION 9312310072 931231 WHO'S NEWS LEAHY IS SAID TO QUIT SALOMON BROTHERS IN ANOTHER LOSS TO ELITE TRADING CORPS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SALOMON BROTHERS INC CONTINUES TO LOSE ITS ELITE CORPS OF BOND TRADERS THAT MADE MEGAPROFITS FOR THE BIG TRADING FIRM IN RECENT YEARS IN THE LATEST DEPARTURE SENIOR TRADER RICHARD F LEAHY RESIGNED PEOPLE FAMILIAR WITH THE SALOMON INC UNIT SAID MR LEAHY 45 YEARS OLD COULDN'T BE REACHED TO COMMENT BUT PEOPLE FAMILIAR WITH HIS PLANS SAY HE WILL JOIN A GROWING LIST OF FORMER SALOMON BONDARBITRAGE TRADERS LINKING UP WITH A NEW TRADING FIRM LAUNCHED BY JOHN MERIWETHER THE WELLKNOWN TRADER AND A FORMER SALOMON VICE CHAIRMAN MR LEAHY'S DEPARTURE ANNOUNCED IN AN INTERNAL NOTICE AT SALOMON ALL BUT DECIMATES THE ORIGINAL CORE OF WHAT HAD BEEN THE MOST PROFITABLE GROUP OF TRADERS AT THE FIRM IN 1990 MEMBERS OF THE BONDARBITRAGE GROUP GENERATED AN ESTIMATED 400 MILLION PROFIT FOR SALOMON AND FAT PAYCHECKS FOR THEMSELVES BOND ARBITRAGERS USE RIGOROUS MATHEMATICAL METHODS TO DETERMINE THE APPROPRIATE PRICE RELATIONSHIPS BETWEEN BONDS BOND FUTURES AND BOND OPTIONS THE BONDARBITRAGE GROUP MAKES BETS ON CHANGES IN INTEREST RATES ON BONDS OF DIFFERENT MATURITIES GENERATING BIG PROFITS OR LOSSES WITH THE USE OF LEVERAGING OR BORROWING MR LEAHY AN 18YEAR SALOMON VETERAN SERVED UNTIL RECENTLY AS MANAGER OF THE FIRM'S HEDGEMANAGEMENT GROUP AND ALSO WAS PRODUCT MANAGER FOR INTERESTRATE DERIVATIVES PRODUCTS HIS LATEST POST WAS COHEAD AND PRODUCT MANAGER OF SALOMON'S MORTGAGE DEPARTMENT SO FAR THIS YEAR SEVERAL CURRENT OR FORMER MEMBERS OF THE BONDARBITRAGE GROUP HAVE RESIGNED TO JOIN THEIR MENTOR MR MERIWETHER THESE INCLUDE ERIC ROSENFELD VICTOR HAGHANI AND LAWRENCE HILIBRAND WHO HEADED THE 20MEMBER UNIT MR HILIBRAND GAINED FAME BY EARNING 23 MILLION IN 1990 PAY MR LEAHY'S DEPARTURE MAKES IT VIRTUALLY A CLEAN SWEEP OF THE INITIAL MEMBERS OF THE BONDARBITRAGE GROUP SAYS A FORMER SENIOR SALOMON EXECUTIVE SALOMON IS GOING INTO '94 WITH VIRTUALLY NOBODY LEFT IN THE AREA THAT MADE ALL THAT MONEY THE EXECUTIVE SAID SALOMON DECLINED TO COMMENT MR MERIWETHER KNOWN ON WALL STREET SIMPLY AS JM RECRUITED MANY OF THE BOND ARBITRAGERS AND LED SALOMON'S PUSH INTO LUCRATIVE HIGHTECH BONDARBITRAGE TRADING IN THE 1980S NOW HIS FLEDGLING NEW FIRM LONGTERM CAPITAL MANAGEMENT WILL BOAST MANY OF THE SAME FACES THE FIRM IS EXPECTED TO FORMALLY START OPERATIONS TOWARD THE END OF FEBRUARY WITH ABOUT 4 BILLION IN CAPITAL WALL STREET EXECUTIVES SAY 9312310071 931231 SALE OF TREASURY BILLS IS EXPECTED TO RAISE 12 BILLION NEXT WEEK WASHINGTON THE TREASURY PLANS TO RAISE 12 BILLION IN NEW CASH WITH THE SALE NEXT THURSDAY OF ABOUT 16 BILLION OF 52WEEK BILLS TO REDEEM 1481 BILLION IN MATURING BILLS THE CUSIP NUMBER FOR THE BILLS IS 912794P81 THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS WILL BE DATED JAN 13 AND WILL MATURE JAN 12 1994 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EDT THURSDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM