ASPIN ORDERED THE MILITARY TO CHECK ITS FILES FOR EVIDENCE OF RADIATION TESTS THE DEFENSE SECRETARY TOLD US MILITARY OFFICIALS TO EXAMINE ALL FILES BACK TO THE 1940S TO SEE WHETHER THE ARMED FORCES CONDUCTED RADIATION TESTS ON PEOPLE I AM CONCERNED ABOUT REPORTS THAT HUMAN BEINGS MAY HAVE BEEN USED IN CONDUCTING RADIATION TESTS WITHOUT THEIR KNOWLEDGE HE SAID THE ENERGY DEPARTMENT HAS ESTIMATED THAT AS MANY AS 800 PEOPLE WERE SUBJECTS OF GOVERNMENTBACKED RADIATION TESTS AND IS TRYING TO LOCATE SURVIVING SUBJECTS THE WHITE HOUSE SUMMONED OFFICIALS FROM AN ARRAY OF FEDERAL AGENCIES TO A MEETING MONDAY TO COORDINATE THEIR REVIEW OF FILES CONCERNING THE TESTS ISRAEL AND THE VATICAN SIGNED A HISTORIC AGREEMENT ON MUTUAL RECOGNITION SEEKING TO PUT AN END TO 2000 YEARS OF LONG TORTUOUS PAINFUL RELATIONS BETWEEN CHRISTIANS AND JEWS THE ACCORD SIGNED IN JERUSALEM IS EXPECTED TO LEAD TO A PILGRIMAGE BY POPE JOHN PAUL II TO ISRAEL IN 1994 THE FIRST PAPAL VISIT IN THREE DECADES PLO AND ISRAELI NEGOTIATORS WILL SPEND THE NEXT TWO WEEKS IN THE EGYPTIAN RESORT OF TABA TRYING TO COMPLETE AN AGREEMENT ON ISRAELI WITHDRAWAL FROM GAZA AND JERICHO A PLO OFFICIAL SAID HOPES FOR A SPEEDY ACCORD DURING TALKS IN CAIRO FADED WHEN PLO CHIEF ARAFAT LEFT EGYPT WITHOUT APPROVING COMPROMISES WORKED OUT BY NEGOTIATORS A SNIPER KILLED A SOLDIER AND TWO BOMBS TARGETING SECURITY FORCES EXPLODED IN BELFAST NORTHERN IRELAND POLICE SAID THEY SUSPECTED THE IRISH REPUBLICAN ARMY WAS INVOLVED THE THREE ATTACKS COINCIDED WITH THE IRA'S NEW YEAR'S MESSAGE IN WHICH THE PARAMILITARY GROUP STRESSED PEACE BUT FAILED TO MENTION A CEASEFIRE NORTH KOREA DECLARED IT HAD MADE A BREAKTHROUGH IN TALKS WITH THE US ABOUT ITS SUSPECTED NUCLEAR WEAPONS PROGRAM WASHINGTON OFFICIALS AGREED THERE HAD BEEN PROGRESS DURING THE DISCUSSIONS IN NEW YORK BUT A STATE DEPARTMENT SPOKESMAN POINTEDLY DECLINED TO CHARACTERIZE THE DEVELOPMENTS AS A BREAKTHROUGH LAWENFORCEMENT OFFICIALS SAID THE BOMBINGS THAT KILLED FIVE PEOPLE TUESDAY NIGHT ACROSS UPSTATE NEW YORK WERE AIMED AT THE FAMILY OF A GIRLFRIEND OF ONE OF TWO MEN ARRESTED POLICE SAID THE SUSPECT BLAMED THE FAMILY FOR PROBLEMS IN THE RELATIONSHIP THE WOMAN'S MOTHER STEPFATHER AND SISTER DIED ALONG WITH TWO BYSTANDERS THE JUSTICE DEPARTMENT DEFENDED ITS HANDLING OF THE CASE OF ACCUSED NAZI DEATH CAMP GUARD DEMJANJUK AND SAID THE JUDGMENT STRIPPING HIM OF HIS US CITIZENSHIP SHOULD BE UPHELD THE DEPARTMENT ASKED THE US COURT OF APPEALS IN CINCINNATI TO OVERTURN A THREEJUDGE RULING IN NOVEMBER REVOKING DEMJANJUK'S 1986 EXTRADITION ORDER THE UN BOSNIA COMMANDER ASSERTED THAT THE SECURITY COUNCIL AND EUROPEAN NATIONS SHOULD SPEND LESS TIME PASSING RESOLUTIONS AND FOCUS INSTEAD ON SENDING ENOUGH PEACEKEEPING TROOPS BRIQUEMONT CITED AN APRIL UN RESOLUTION THAT ESTABLISHED SAFE AREAS SAYING THERE WERE NEVER SUFFICIENT FORCES TO IMPLEMENT SUCH A RESOLUTION HONDURAN MILITARY AUTHORITIES WILL OPEN THEIR SECRET FILES ON POLITICAL KILLINGS AND DISAPPEARANCES IN THE 1980S AND LET JUDGES QUESTION OFFICERS BLAMED FOR THEM THE ARMY SAID A DAY EARLIER A RIGHTS PANEL ACCUSED ARGENTINE MILITARY ADVISERS AND NICARAGUAN CONTRA REBELS OF HELPING USTRAINED HONDURAN TROOPS KILL LEFTISTS IN THE 1980S MOST RUSSIAN SHOPS WILL STOP ACCEPTING THE US DOLLAR AND OTHER FOREIGN CURRENCIES TOMORROW STORES WERE TOLD TO PREPARE TO ACCEPT ONLY RUBLES OR CREDIT CARDS AS PART OF A GOVERNMENT ATTEMPT TO STRENGTHEN THE RUSSIAN CURRENCY AND HELP STABILIZE THE COUNTRY'S FINANCIAL SYSTEM MANY STORES NOW REFUSE TO TAKE RUBLES INDIA'S FINANCE MINISTER REBUTTED A PARLIAMENTARY PANEL'S ALLEGATIONS THAT HE AND HIS MINISTRY WERE NEGLIGENT IN HANDLING A 14 BILLION SECURITIES SCANDAL LAST YEAR HE SAID THE GOVERNMENT INTENDS TO TAKE ACTION AGAINST ALL THOSE IMPLICATED IN THE SCANDAL SUDAN ORDERED BRITAIN'S AMBASSADOR TO LEAVE WITHIN TWO WEEKS THE ISLAMIC GOVERNMENT WAS ANGERED AT THE ARCHBISHOP OF CANTERBURY'S DECISION TO EXCLUDE THE SUDANESE CAPITAL FROM HIS CURRENT TOUR OF THE COUNTRY THE ARCHBISHOP HAD CANCELED A PLANNED VISIT TO KHARTOUM OUT OF CONCERN HIS ACTIVITIES WOULD BE RESTRICTED 9312310068 931231 INTERNATIONAL FINANCE MINISTER REBUTS ALLEGATIONS ON INDIA SCANDAL BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI INDIAN FINANCE MINISTER MANMOHAN SINGH REBUTTED A PARLIAMENTARY COMMITTEE'S ALLEGATIONS THAT HE AND HIS MINISTRY WERE NEGLIGENT IN THEIR HANDLING OF LAST YEAR'S 14 BILLION SECURITIES SCANDAL MR SINGH SAID THE GOVERNMENT INTENDS TO TAKE ACTION AGAINST ALL THOSE IMPLICATED IN THE SCANDAL INCLUDING SOME INDIAN AND FOREIGN BANKS OFFICIALS AND BROKERS THE SCANDAL CENTERS ON THE ILLEGAL DIVERSION OF BANK AND CORPORATE FUNDS INTO THE INDIAN STOCK MARKET MR SINGH'S DEFENSE CAME YESTERDAY NEAR THE END OF A TWODAY DEBATE IN PARLIAMENT ON A COMMITTEE REPORT WHICH AMONG OTHER THINGS WAS CRITICAL OF MR SINGH AND HIS MINISTRY THE REPORT CRITICIZED THE FAILURE TO ANTICIPATE THE SCANDAL TO RESPOND PURPOSEFULLY AFTER IT SURFACED AND TO TAKE QUICK CORRECTIVE ACTION IN RESPONSE MR SINGH SUBMITTED HIS RESIGNATION PRIME MINISTER P V NARASIMHA RAO UNDER WIDESPREAD PARTY AND PUBLIC PRESSURE TO TURN IT DOWN SENT MR SINGH AS THE GOVERNMENT'S MAIN SPOKESMAN IN PARLIAMENT SHOULD MR SINGH RESIGN THERE WOULD BE WIDESPREAD FEARS FOR THE FUTURE OF INDIA'S AMBITIOUS ECONOMICREFORM PROGRAM IN THE PARLIAMENTARY DEBATE THE PRIME MINISTER REFERRED TO MR SINGH AS HIS FINANCE MINISTER THUS PROMPTING SPECULATION THAT MR RAO WOULD REFUSE THE RESIGNATION THE DEBATE VIRTUALLY TURNED INTO A WRANGLE OVER MR SINGH'S FUTURE OPPOSITION SPEAKERS HOPING TO EMBARRASS THE GOVERNMENT OR SCUTTLE ITS REFORM PROGRAM ARGUED FORCEFULLY FOR MR SINGH'S RESIGNATION WHILE RULING CONGRESS PARTY MEMBERS DEFENDED HIM IN BRIEF REMARKS AT THE END OF THE DEBATE MR RAO SAID HE SUPPORTED MR SINGH'S COMMITMENT TO PUNISH THE GUILTY CAUTIONING THOSE OPPOSITION MEMBERS WHO WANT ALL THE REPORT'S RECOMMENDATIONS TO BE ACCEPTED MR RAO SAID THE GOVERNMENT WOULD GO INTO EVERY WORD OF THE REPORT AND TAKE ACTION WHEREVER ACTION IS CALLED FOR IN HIS 45MINUTE ADDRESS MR SINGH SAID THAT ALTHOUGH HE ACCEPTED FULL RESPONSIBILITY FOR THE ACTIONS OF HIS MINISTRY AND ITS OFFICIALS HE FELT THAT THE PARLIAMENTARY COMMITTEE DIDN'T GIVE SOME ISSUES THE ATTENTION THEY DESERVE MR SINGH SAID THAT BETWEEN BECOMING FINANCE MINISTER IN JUNE 1991 AND APRIL 1992 HE INITIATED SEVERAL MEASURES TO REFORM INDIA'S STOCK MARKETS BANKS AND THE FINANCIAL SECTOR AS A WHOLE INCLUDING GIVING GREATER POWERS TO THE SECURITIES AND EXCHANGE BOARD OF INDIA WHICH GOVERNS THE STOCK MARKETS MR SINGH ALSO SAID THAT HE AND HIS MINISTRY WERE AWARE THAT FUNDS FROM QUESTIONABLE SOURCES WERE FUELING THE STOCK MARKET'S SUDDEN RISE FROM THE END OF 1991 AND THAT IT WAS THE RESERVE BANK OF INDIA'S INVESTIGATIONS IN MARCH 1992 THAT EVENTUALLY UNEARTHED THE SCANDAL ALTHOUGH MR SINGH DIDN'T OFFER DETAILS HE SAID THE GOVERNMENT INTENDS TO TAKE ACTION AGAINST FOREIGN BANKS CRITICIZED IN THE PARLIAMENTARY COMMITTEE'S REPORT THOSE BANKS ARE BANK OF AMERICA STANDARD CHARTERED BANK CITIBANK AND ANZ GRINDLAYS THE CHARGES STATE THAT THE BANKS EITHER MISUSED CORPORATE FUNDS OR THAT A FEW OF THEIR OFFICIALS COOPERATED WITH BROKERS TO ILLEGALLY TRANSFER FUNDS INTO THE STOCK MARKET 9312310067 931231 THE AMERICAS THE LATIN TIGERS ARE READY TO ROAR BY WILLIAM R RHODES THIS YEAR'S DRAMATIC PASSAGE OF NAFTA BY THE US CONGRESS GOES FAR BEYOND BEING THE MAJOR LEGISLATIVE VICTORY FOR PRESIDENT CLINTON IN 1993 NAFTA REPRESENTS A JUNCTURE IN HISTORY WHEN EVENTUALLY ALL NATIONS OF THE AMERICAS CAN JOIN AS PARTNERS SEEKING MUTUAL PROSPERITY PASSAGE OF NAFTA ALSO REPRESENTS THE CULMINATING MOMENT OF REMARKABLE CHANGES THAT HAVE BEEN TAKING PLACE THROUGHOUT LATIN AMERICA MANY OF THE REGION'S ECONOMIES ARE POISED AT ROUGHLY THE SAME STAGE OF LIBERALIZATION THAT TWO DECADES AGO LAUNCHED DYNAMIC GROWTH IN ASIA WHY HAS IT TAKEN LATIN AMERICA MORE THAN 20 YEARS TO FOLLOW THE PATH OF SUSTAINED GROWTH ATTAINED BY THE ASIAN TIGERS FIRST AND FOREMOST THE ECONOMIC MODEL THAT MOST LATIN AMERICAN COUNTRIES CHOSE TO FOLLOW TWO DECADES AGO WAS FLAWED THE PROMISING ECONOMIC GROWTH IN THE LATE 1960S AND EARLY 1970S WAS DRAGGED UNDER BY BLOATED AND INEFFICIENT PUBLIC SECTORS HIGHLY PROTECTED INDUSTRIES OBSTACLES TO PRIVATE ENTERPRISE AND HUGE DEBT INCURRED PRINCIPALLY BY STATERUN ENTERPRISES AS A RESULT WHEN HIGH INTEREST RATES AND A GLOBAL RECESSION SURFACED AT THE END OF THE 1970S MANY COUNTRIES WERE UNABLE TO REPAY THEIR INTERNATIONAL OBLIGATIONS THE RESULTING DEBT CRISIS OF THE 1980S DEBILITATED THOSE COUNTRIES AND THEIR CREDITORS ALTHOUGH A NUMBER OF US BANKERS AND PUBLIC OFFICIALS SPENT MUCH OF THE LAST DECADE FINDING WAYS TO RESOLVE THAT DEBT CRISIS ULTIMATE CREDIT FOR THE RESOLUTION BELONGS TO THE PEOPLE OF LATIN AMERICA AND THEIR GOVERNMENTS DEDICATED LEADERS IN MANY LATIN AMERICAN COUNTRIES HAVE BEEN IMPLEMENTING STRUCTURAL ECONOMIC REFORMS INCLUDING OPENING THEIR MARKETS TO THE FREE MOVEMENT OF MONEY AND GOODS AS A RESULT THEY HAVE ATTRACTED BOTH TRADE AND INVESTMENT MEXICO CHILE ARGENTINA COLOMBIA BOLIVIA VENEZUELA URUGUAY AND MOST RECENTLY PERU ARE AMONG THOSE COUNTRIES THAT HAVE INSTITUTED SIGNIFICANT FREEMARKET REFORMS AND BRAZIL THE LARGEST LATIN ECONOMY HAS INTRODUCED PRIVATIZATIONS AND REFORM OF TARIFFS AND TAX COLLECTION AND A NEW PACKAGE OF MEASURES TO ADDRESS ECONOMIC PROBLEMS INCLUDING THE COUNTRY'S HIGH INFLATION RATE THIS COMES AT A TIME WHEN BRAZIL HAS SIGNED AN AGREEMENT WITH ITS FOREIGN CREDITOR INSTITUTIONS FOR RESTRUCTURING ITS EXTERNAL PUBLICSECTOR DEBT DESPITE THE DIFFERENT APPROACHES TO ECONOMIC REFORM I HAVE DISTILLED SEVERAL KEY FACTORS THAT UNDERLIE SUCCESS MOST IMPORTANT THE IMPLEMENTATION IN MOST COUNTRIES OF STRUCTURAL ECONOMIC REFORMS SUCH AS PRIVATIZATIONS TRADE LIBERALIZATION DEREGULATION AND TAX REFORM STRONG POLITICAL WILL AND COURAGEOUS LEADERSHIP BY HEADS OF STATE AND GOVERNMENTS IN PRESSING FOR ECONOMIC REFORM AND OPEN MARKETS THE MOVE AWAY FROM MILITARY DICTATORSHIP TO DEMOCRACY WHICH HAS RESULTED IN MORE DEMOCRACIES THAN EVER BEFORE IN LATIN AMERICAN HISTORY ACTION TO PHASE OUT THE EXTERNAL DEBT PROBLEMS OF THE 1980S THROUGH RESTRUCTURINGS WHICH HAS ALLOWED MOST COUNTRIES TO RESTORE THEIR CREDITWORTHINESS DEVELOPMENT OF LOCAL CAPITAL MARKETS WHICH HAS ENCOURAGED THE REPATRIATION OF FLIGHT CAPITAL ONCE CALLED THE LARGEST SAVINGS ACCOUNT IN THE DEVELOPING WORLD TAPPING INTERNATIONAL CAPITAL MARKETS WHICH HAS ENABLED MANY COUNTRIES TO ATTRACT NEW VOLUNTARY FLOWS OF CAPITAL THE RECENT MOVEMENT TOWARD INDEPENDENT CENTRAL BANKS WHICH HAS HELPED INSTITUTIONALIZE THE REFORM PROCESS FINALLY THE GROWTH AND EXPANSION OF REGIONAL TRADE WHICH HAS BEEN ENCOURAGED THROUGH NEW REGIONAL AND BILATERAL TRADE AGREEMENTS INCLUDING THE ENTERPRISE FOR THE AMERICAS INITIATIVE CALLING FOR A HEMISPHERIC FREE TRADE ZONE NAFTA SHOULD PROVE TO BE A VITAL FIRST PHASE OF SUCH A ZONE WHILE STRUCTURAL DEVELOPMENT HAS BEEN AIDED BY A SIGNIFICANT DROP IN US INTEREST RATES FROM THEIR EXTRAORDINARILY HIGH LEVELS IN 1982 WHEN THE DEBT CRISIS BEGAN THE PRECEDING ELEMENTS ARE THE MAJOR REASONS FOR LATIN AMERICA'S CURRENT ECONOMIC TURNAROUND IN FACT THE KEY FACTORS IN THE LATIN AMERICAN SUCCESSES MAY BE USEFUL GUIDES TO OTHER EMERGING NATIONS THAT SEEK TO DEVELOP THE BENEFITS OF FREE MARKETS AND DEMOCRACY SUCH AS THOSE IN EASTERN AND CENTRAL EUROPE AS WELL AS IN AFRICA WE AND THEY MUST RECOGNIZE THAT SUCCESS REQUIRES CONSISTENCY AND PATIENCE THE REFORM PROCESS TAKES COMMITMENT AND TIME THE CURRENT SURGE OF CAPITAL FLOWS INTO LATIN AMERICA IS NOT IN ITSELF A TRUE MEASURE OF THE REGION'S TURNAROUND LATIN AMERICA EXPERIENCED ROBUST ECONOMIC GROWTH AND CAPITAL FLOWS IN THE 1970S AND EARLY 1980S ONLY TO SEE THAT SURGE TURN INTO UNMANAGEABLE DEBT WHY SHOULD THE L990S BE ANY DIFFERENT THERE HAVE BEEN IMPORTANT POSITIVE CHANGES IN THE PAST DECADE BECAUSE OF THE NUMEROUS PRIVATIZATION PROGRAMS TODAY'S CAPITAL FLOWS ARE DIRECTED MAINLY TOWARD THE PRIVATE SECTOR WITH A NEW EMPHASIS ON EQUITY RATHER THAN DEBT MODERN TECHNOLOGY BETTER MANAGEMENT AND THE CREATION AND EXPANSION OF LOCAL CAPITAL MARKETS ARE GUIDING THESE NEW FLOWS TOWARD MORE PRODUCTIVE USES MOST ARE DIRECTED TOWARD INVESTMENT IN PLANT AND EQUIPMENT RATHER THAN TO FINANCING FISCAL AND BALANCE OF PAYMENT DEFICITS AS HAPPENED IN THE 1970S AND INTO THE EARLY 1980S FURTHERMORE TODAY'S INVESTORS ARE AFFORDED MORE PROTECTION THROUGH INCREASED TRANSPARENCY IN ACCOUNTING RULES AND DISCLOSURE REQUIREMENTS NOTWITHSTANDING THESE ADVANCES A NUMBER OF MARKET OBSERVERS ARE CONCERNED THAT THE TREMENDOUS CAPITAL FLOWS NOW BEING FUNNELED INTO LATIN AMERICA MAY RESULT MORE FROM INVESTORS CHASING HIGH YIELDS DUE TO LOW INTEREST RATES IN THE US THAN TO SOUND MARKET JUDGMENTS IN THIS ENVIRONMENT INVESTORS SHOULD EXERCISE NORMAL CAUTION AND RECOGNIZE THAT EACH COUNTRY IN LATIN AMERICA IS AT A DIFFERENT STAGE OF DEVELOPMENT AND ECONOMIC REFORM THE REGION CANNOT BE VIEWED AS AN ENTITY BUT MUST BE LOOKED AT COUNTRY BY COUNTRY INDUSTRY BY INDUSTRY AND CASE BY CASE BY DOING SO I BELIEVE THAT THE KNOWLEDGEABLE INVESTOR CAN FIND MANY OPPORTUNITIES WITHIN THE REGION THESE OPPORTUNITIES ARE ENHANCED NOW THAT NAFTA IS CLOSE TO BEING IMPLEMENTED CERTAINLY MEXICO IS A DIRECT BENEFICIARY DRAWING ON THE CAPITAL AND TECHNOLOGY OF THE US AND CANADA BUT OTHER LATIN AMERICAN COUNTRIES ARE LOOKING UPON NAFTA AS A PARTNERSHIP AGREEMENT AND ITS SUCCESS WILL ENCOURAGE THEM TO DEVELOP FURTHER TIES AMONG THEMSELVES AND WITH THE NAFTA PARTNERS THESE DEVELOPMENTS WILL OPEN THE WAY FOR AN ERA OF PROSPERITY IN THE HEMISPHERE MR RHODES IS VICE CHAIRMAN CITICORP AND CITIBANK NA 9312310066 931231 ABREAST OF THE MARKET INDUSTRIALS FALL AS ECONOMIC GAINS PROMPT WORRY OVER HIGHER RATES BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK TUMBLING BOND PRICES DERAILED A YEAREND STOCK RALLY THAT HAD CARRIED THE DOW JONES INDUSTRIAL AVERAGE TO THREE STRAIGHT NEW HIGHS FRESH EVIDENCE OF ECONOMIC GROWTH RATTLED INFLATIONWARY BOND INVESTORS SENDING THE 30YEAR TREASURY DOWN MORE THAN 1 POINT AND LIFTING LONG YIELDS TO 634 GOVERNMENT STATISTICS YESTERDAY MORNING SHOWED A LARGERTHANEXPECTED DROP IN INITIAL CLAIMS FOR UNEMPLOYMENT INSURANCE FOR LAST WEEK AND A SURGE IN NEWHOME SALES LAST MONTH ALTHOUGH ECONOMIC STRENGTH CAN MEAN HIGHER PROFITS STOCK INVESTORS CONCENTRATED INSTEAD ON THE PROSPECT OF HIGHER INTEREST RATES LOW RATES HAVE BEEN THE EQUITY MARKET'S STRONGEST UNDERPINNING ALL YEAR THE INDUSTRIAL AVERAGE WHICH CREPT HIGHER TUESDAY AND WEDNESDAY AFTER A SOLID 35POINT JUMP MONDAY FINISHED WITH A LOSS OF 1845 OR 049 TO 377588 BROADER INDEXES WHICH ALSO SET RECORDS THIS WEEK SLUMPED AND DECLINERS LED ADVANCERS BY 1093 TO 991 ON THE NEW YORK STOCK EXCHANGE TRADING VOLUME MEANWHILE WAS CONTAINED BY THE APPROACH OF THE YEAR END A MODEST 1936 MILLION SHARES CHANGED HANDS ON THE BIG BOARD DOWN FROM 2693 MILLION WEDNESDAY ANALYSTS SAID MOST BIG INVESTORS ALREADY HAD MADE THEIR FINAL MAJOR MOVES FOR 1993 MANY PLAYERS ARE OUT OF THEIR OFFICES FOR THE HOLIDAY AND ACTIVITY IS EXPECTED TO SLOW TO A CRAWL TODAY THE STANDARD & POOR'S 500 STOCK INDEX LOST 194 OR 041 TO 46864 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 090 OR 035 TO 25977 AND THE DOW JONES EQUITY MARKET INDEX SLID 171 OR 038 TO 44389 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE 039 OR 008 TO 47255 UTILITY AND MANY FINANCIALRELATED ISSUES WERE HIT BY THE JUMP IN INTEREST RATES ANALYSTS SAID THE DOW JONES UTILITIES AVERAGE DECLINED 092 OR 040 TO 23016 BANC ONE FELL 3/4 TO 38 1/2 FLEET FINANCIAL DROPPED 3/8 TO 33 1/2 AND ON NASDAQ MICHIGAN NATIONAL FELL 1 TO 57 1/2 JP MORGAN SLIPPED 7/8 TO 69 3/4 THE WALL STREET JOURNAL REPORTED THE NEW YORK BANK'S CORSAIR PARTNERSHIP COULD SUSTAIN A HEAVY LOSS ON ITS INVESTMENT IN THE TROUBLED BANCO ESPANOL DE CREDITO WHICH ESSENTIALLY WAS NATIONALIZED BY THE SPANISH CENTRAL BANK TUESDAY MCI COMMUNICATIONS JUMPED AFTER THE WALL STREET JOURNAL REPORTED THAT THE WASHINGTON DC COMPANY PLANS TO SPEND 1 BILLION TO BUILD LOCAL NETWORKS IN MOST MAJOR US CITIES THE MOVE IS MCI'S BOLDEST ATTACK YET ON THE LOCAL BELL TELEPHONE MARKET SHARES OF BABY BELLS SLUMPED AMERITECH LOST 1 5/8 TO 77 3/4 BELLSOUTH 1 1/2 TO 58 1/4 SOUTHWESTERN BELL 7/8 TO 42 3/4 AND U S WEST 3/8 TO 46 3/8 GENENTECH RALLIED 1 1/8 TO 49 1/2 AFTER THE COMPANY WON FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET ITS DNASE DRUG THE FIRST NEW TREATMENT FOR CYSTIC FIBROSIS IN 30 YEARS AN ADVISORY PANEL TO THE AGENCY IN AUGUST HAD RECOMMENDED APPROVAL OF THE PRODUCT SMITHKLINE BEECHAM'S AMERICAN DEPOSITARY RECEIPTS ADDED 3/8 TO 27 3/8 THE UK COMPANY RECEIVED FDA APPROVAL TO MARKET ITS KYTRIL INJECTION TO PREVENT NAUSEA AND VOMITING ASSOCIATED WITH CHEMOTHERAPY CANCER TREATMENTS NORTHERN TELECOM CLIMBED 1 TO 31 3/4 AFTER MERRILL LYNCH UPGRADED ITS NEARTERM RATING ON THE CANADIAN TELECOMMUNICATIONS COMPANY'S STOCK TO ABOVE AVERAGE FROM NEUTRAL KANSAS CITY SOUTHERN LOST 1/2 TO 49 1/2 MERRILL TRIMMED AN INTERMEDIATETERM OPINION ON THE RAILROAD COMPANY'S STOCK TO NEUTRAL FROM ABOVE AVERAGE CITING RECENT GAINS IN ITS SHARE PRICE THE STOCK HAS DOUBLED IN VALUE THIS YEAR USF&G JUMPED 1 1/4 TO 15 1/8 AND ON NASDAQ SCIMED LIFE SYSTEMS ADDED 2 TO 39 1/2 AND BIOGEN CLIMBED 1/4 TO 39 3/4 EACH OF THE STOCKS WAS NAMED AS ONE OF KIDDER PEABODY'S TOP PICKS FOR 1994 FOUNDATION HEALTH ADDED 5/8 TO 30 7/8 WHILE AETNA LIFE SLIPPED 1/2 TO 60 1/4 IN REACTION TO CRITICISM FROM THE GENERAL ACCOUNTING OFFICE THE PENTAGON REOPENED BIDDING FOR A MILITARY MEDICAL CONTRACT THAT WAS TO GO TO AETNA FOR 35 BILLION THE PACT HAS BEEN HELD BY FOUNDATION HEALTH SEVERAL CHINARELATED AMERICAN DEPOSITARY RECEIPTS WERE LOWER DESPITE A RECORD CLOSE ON THE HONG KONG MARKET A HOME MARKET TO MANY CHINESE STOCKS EK CHOR CHINA MOTORCYCLE FELL 2 TO 35 3/4 SHANGHAI PETROCHEMICAL 2 1/2 TO 42 5/8 AND CHINA TIRE 1 TO 26 3/8 9312310065 931231 NOTICE TO READERS TODAY'S EDITION OF THE WALL STREET JOURNAL APPEARS IN A SINGLE SECTION 9312310064 931231 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING SERIES 1665 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 755 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 356 MONTHS 9312310063 931231 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY DISPUTES SIMMER BETWEEN THE WHITE HOUSE AND JUSTICE OVER WHITEWATER FILES DESPITE CLINTON'S PROMISE TO GIVE INVESTIGATORS THE DOCUMENTS THEY ARE SEEKING IN CONNECTION WITH HIS REALESTATE DEVELOPMENT INVESTMENT WHITE HOUSE OFFICIALS REMAIN UNHAPPY WITH JUSTICE DEPARTMENT LEAKS THE WHITE HOUSE SAYS IT WAS NEVER ASKED FOR THE FILES BEFORE NEWS STORIES BEGAN APPEARING THAT INVESTIGATORS WANTED THEM ANY ORGANIZATION LIKE A FAMILY HAS TO HAVE RESPECT FOR THE CONFIDENCES NECESSARY FOR PROPER DELIBERATIONS SAYS DEPUTY CHIEF OF STAFF LADER SOME WHITE HOUSE OFFICIALS GRUMBLE THAT THE LEAKS WERE THE WORK OF REPUBLICAN HOLDOVERS AT JUSTICE BUT THEY INSIST THERE HAS BEEN NO PUSH FROM THE WHITE HOUSE TO ROOT OUT THE LEAKERS THE REASON FEAR THAT CLINTON WOULD BE ACCUSED OF TAMPERING WITH THE PROBES ECONOMICS AND SECURITY TOP THE AGENDA FOR NEXT MONTH'S MOSCOW SUMMIT ALTHOUGH THE ADMINISTRATION HAS COMMITTED ITSELF TO MORE THERAPY AND LESS SHOCK FOR THE RUSSIAN ECONOMY US OFFICIALS GROW LESS ENTHUSIASTIC ABOUT STRONGARMING THE IMF INTO RELAXING LENDING CONDITIONS SOME SNIPE AT GORE FOR GOING TOO FAR DURING HIS RECENT RUSSIA TRIP EVEN THOUGH HIS COMMENTS TRACKED CLINTON'S BESIDES DEALING WITH ECONOMIC ISSUES AT THE SUMMIT YELTSIN AND CLINTON ARE EXPECTED TO REVIEW POSSIBLE CHANGES IN ARMSCONTROL TREATIES THE US WANTS THE ABM TREATY TO PERMIT DEFENSES AGAINST SHORTRANGE OR TACTICAL MISSILES THE RUSSIANS WANT THE CONVENTIONAL FORCES IN EUROPE TREATY TO ALLOW THEM TO MOVE MORE ARMORED UNITS ALONG THEIR SOUTHERN BORDER CLINTON'S BUDGET HONEYMOON SHOWS SIGNS OF COMING TO AN END WHITE HOUSE AIDES MARVEL AT HOW LITTLE SNIPING HE HAS GOTTEN SO FAR ON BUDGET DECISIONS BUT SOME SQUABBLES BEGIN TO TAKE SHAPE KEEPING A PROMISE TO SENATE ARMED SERVICES CHAIRMAN NUNN HE DECIDES TO PROPOSE GIVING THE MILITARY SLIGHTLY MORE SPENDING AUTHORITY FOR FISCAL 1995 THAN 1994'S 250 BILLION BUT LIBERAL MASSACHUSETTS REP FRANK VOWS A BATTLE AND IT ISN'T CLEAR HOW HARD THE WHITE HOUSE WILL FIGHT MEANWHILE A TANGLE WITH SEN KERREY DELAYS CLINTON'S APPOINTMENTS TO THE KERREYDANFORTH COMMISSION ON ENTITLEMENT CUTS AND TAX REFORM SOME ADMINISTRATION OFFICIALS FEAR KERREY IS TRYING TO STACK THE COMMISSION WITH MEMBERS WHO FAVOR CUTTING MIDDLECLASS BENEFITS OR WOULD ATTACK CLINTON'S HEALTHCARE PLAN AFTER SENATE LEADERS MITCHELL AND DOLE BALK AT HAVING TO USE TWO OF THEIR SLOTS TO APPOINT KERREY AND DANFORTH THE WHITE HOUSE AGREES TO EXPAND THE PANEL TO MAKE ROOM FOR THE COCHAIRMEN WHAT'S UP DOC CLINTON ECONOMIC ADVISERS ROBERT RUBIN GENE SPERLING AND LAURA TYSON SUMMON WASHINGTON POST EDITORS AND REPORTERS TO THE WHITE HOUSE FOR A DRESSING DOWN THE OFFENSE QUOTING DREYFUS CORP ECONOMIST RICHARD HOEY AS SAYING THAT THE US ECONOMY WOULD HAVE BOUNCED BACK EVEN IF VOTERS HAD ELECTED BUGS BUNNY WHILE THE WHITE HOUSE SIGNALS DELAY IN PRESENTING ITS WELFAREREFORM PROPOSAL 162 MOSTLY CONSERVATIVE HOUSE REPUBLICANS PUSH A BILL TO CUT OFF BENEFITS TO IMMIGRANTS BOTH LEGAL AND ILLEGAL MEANWHILE A LETTER TO CLINTON FROM 87 MOSTLY LIBERAL HOUSE DEMOCRATS OBJECTS TO HIS TASK FORCE'S CALL FOR A TWOYEAR LIMIT ON BENEFITS AND SEEKS MORE JOB TRAINING PUBLICSECTOR EMPLOYMENT AND CHILD CARE NOT SO FAST THE WHITE HOUSE WAS SURPRISED AND CHAGRINED BY ENERGY SECRETARY O'LEARY'S COMMENT ABOUT PAYING COMPENSATION TO ATOMICTESTING VICTIMS WITH A SUPERTIGHT BUDGET THE WHITE HOUSE IS NOW SCRAMBLING TO HEAD OFF A COSTLY NEW ENTITLEMENT BATTLES BEGIN FOR THE UPPER HAND IN REVAMPING JOB TRAINING WHILE THE LABOR DEPARTMENT IS REDRAWING ITS 2 BILLION PLAN TO RETRAIN WORKERS CUT BY PLANT CLOSINGS REPUBLICANS LED BY SEN KASSEBAUM LOOK TO MELD 154 SEPARATE JOB AND EDUCATION PROGRAMS INTO A NEW SYSTEM WITH CLOSE TIES TO BUSINESS THE ADMINISTRATION IS SETTING ITS SIGHTS TOO LOW SHE SAYS TOUGH TIMES FOR INCUMBENT GOVERNORS ARE LOOMING NEXT YEAR MARIST INSTITUTE POLLSTER LEE MIRINGOFF EXPECTS THAT SMOKE WILL RISE FROM THE STATE CAPITOL IN ALBANY NEXT WEEK AS CUOMO DECIDES WHETHER TO SEEK A FOURTH TERM THE BETTING AMONG CUOMOWATCHERS IS HE WILL SAY YES BUT HIS APPROVAL RATING IS 34 AN ALLTIME LOW AND POLITICAL ANALYST CHARLES COOK PREDICTS FOR A GUY WITH A REAL FEAR OF LOSING I THINK THAT'S ENOUGH TO KEEP HIM FROM GOING FOR IT OTHERS ON THE ENDANGERED LIST INCLUDE TAXRAISING REPUBLICANS WILSON OF CALIFORNIA AND BRANSTAD OF IOWA AND DEMOCRAT CHILES OF FLORIDA THEIR RACES WILL PROBABLY HINGE ON WHETHER THEIR TOUGH MEDICINE CAN BE SHOWN TO HAVE RESTORED FISCAL HEALTH GOP GOV EDGAR OF ILLINOIS ALSO IS VULNERABLE OF THE 25 INCUMBENTS UP IN 1994 I FIGURE ONLY ABOUT THREE OF THEM ARE SAFE SAYS COOK MINOR MEMOS NO MORE BILL PARTICIPANTS AT THE RENAISSANCE WEEKEND WHICH HAS TRADITIONALLY BEEN ON AN ENTIRELY FIRSTNAME BASIS THIS YEAR ARE INSTRUCTED TO ADDRESS CLINTON AS MR PRESIDENT SENATE LEADER MITCHELL SAYS HIS POST IS THE BEST JOB IN THE COUNTRY WHEN THE SENATE'S NOT IN SESSION ONLY IN WASHINGTON THE SENATE BUDGET PANEL'S GOP STAFF WISHES READERS OF ITS WEEKLY BULLETIN A JOYOUS NEW YEAR FILLED WITH DEFICIT REDUCTION 9312310062 931231 BUSINESS BRIEFS ORCHARD SUPPLY HARDWARE STORES CORP FOR 23 MILLION ACQUIRED THREE STORES IN THE SOUTH PASADENA WEST LOS ANGELES AND GOLETA SANTA BARBARA AREAS IN CALIFORNIA COMPLETING THE SECOND OF TWO ANNOUNCED TRANSACTIONS TO ACQUIRE NINE FORMER BUILDERS EMPORIUM STORES FIRST FIDELITY BANCORP PURCHASED PEOPLES WESTCHESTER SAVINGS BANK HAWTHORNE NY IN A TRANSACTION VALUED AT ABOUT 235 MILLION EACH PEOPLES WESTCHESTER COMMON SHARE WILL BE CONVERTED INTO EITHER 0939 SHARE OF FIRST FIDELITY COMMON STOCK OR 4086 IN CASH GUARDSMAN PRODUCTS INC WILL ACQUIRE ATLANTA SUNDRIES INC IN A DEAL THAT INVOLVES AN EXCHANGE OF COMMON STOCK BETWEEN THE COMPANIES 9312310061 931231 MUTUAL FUNDS STOCK MUTUAL FUND SALES END YEAR ON A HIGH NOTE BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SALES OF STOCK MUTUAL FUNDS ARE ENDING THE YEAR WITH A BANG THOUGH NOVEMBER WAS MORE LIKE A WHIMPER DECEMBER WAS ABSOLUTELY A BLOWOUT MONTH FOR EQUITIES SAYS NEAL LITVAK A FIDELITY INVESTMENTS EXECUTIVE VICE PRESIDENT IN BOSTON FIDELITY ESTIMATES IT PULLED 18 BILLION INTO STOCK FUNDS THIS MONTH A RECORD FOR THE NATION'S LARGEST FUND COMPANY MEANWHILE BONDFUND SALES ARE REBOUNDING MUCH MORE MODERATELY AFTER A SHARP DROP IN NOVEMBER FUND INDUSTRY EXECUTIVES SAY INFLOWS INTO STOCK FUNDS IN DECEMBER ARE ABOUT 30 HIGHER THAN THEY WERE LAST YEAR IN DECEMBER ACCORDING TO AMG DATA SERVICES IN ARCATA CALIF AND A LOT OF THAT MONEY IS WINDING UP IN FOREIGN STOCK MARKETS AT FIDELITY INTERNATIONAL FUND SALES ACCOUNTED FOR 40 OF STOCKFUND SALES THIS MONTH OTHER FUND COMPANIES ALSO REPORT BLOCKBUSTER SALES OF FOREIGNSTOCK FUNDS WHICH HAVE RANKED AMONG THIS YEAR'S TOP PERFORMERS DECEMBER'S STRENGTH FOLLOWS A NOVEMBER SETBACK WHICH WAS REFLECTED IN FIGURES RELEASED BY THE INVESTMENT COMPANY INSTITUTE YESTERDAY A TOTAL OF 87 BILLION FLOWED INTO STOCK FUNDS IN NOVEMBER THE LOWEST AMOUNT SINCE FEBRUARY AND DOWN FROM A RECORD 133 BILLION IN OCTOBER THE ICI SAID IN NOVEMBER FEARS OF RISING INTEREST RATES CURBED FUND INFLOWS ESPECIALLY INTO BOND FUNDS WHERE SHARE PRICES FALL WHENEVER YIELDS RISE MUTUAL FUND SALES ARE CLOSELY WATCHED AS AN INDICATOR OF HOW MUCH CASH IS GOING INTO THE STOCK MARKET FROM SMALL INVESTORS STRONG SALES CAN PROVIDE ADDITIONAL BUYING TO DRIVE STOCK PRICES HIGHER BUT SOME PEOPLE REGARD BOOMING SALES AS A SIGN THE MARKET IS GETTING OVERHEATED THE FLOOD OF CASH INTO STOCK FUNDS IN DECEMBER WAS SPARKED BY POSITIVE ECONOMIC NEWS SOLID GAINS IN THE STOCK MARKET AND THE CONTINUATION OF BASICALLY LOW TO FLAT INTEREST RATES SAYS AVI NACHMANY AN ANALYST AT NEW YORK CONSULTING FIRM STRATEGIC INSIGHT THIS IS AN ENVIRONMENT OF HIGH CONFIDENCE HE SAYS INVESTORS ARE ASSUMING THE ECONOMY IS GOING TO GET BETTER STRONG BUYING OF HIGHYIELD JUNKBOND FUNDS ALSO REFLECTS THIS OPTIMISM INVESTORS ARE TAKING MORE RISKS IN PURSUIT OF HIGHER RETURNS VANGUARD GROUP OF VALLEY FORGE PA THE SECONDLARGEST MUTUALFUND GROUP SAYS IT IS SEEING A 10 INCREASE FROM NOVEMBER IN CASH FLOWING INTO EQUITY FUNDS INFLOWS ARE STRONG IN BOTH ITS DOMESTIC AND INTERNATIONAL INDEX FUNDS VANGUARD SAYS THE HOT PERFORMANCE OF STOCKS OVERSEAS IS FUELING A RUSH ABROAD THAT BEGAN IN THE SUMMER ANALYSTS SAY THE FLOOD IS EXPECTED TO KEEP COMING IN NEXT MONTH WHEN INVESTORS TAKE A LOOK AT SOME OF THE HIGH DOUBLEDIGIT RETURNS POSTED BY INTERNATIONAL FUNDS THIS YEAR THE LATIN AMERICAN SOUTHEAST ASIAN AND EMERGINGMARKET STOCK FUNDS ARE BRINGING IN A LOT OF CASH AT FIDELITY BALTIMOREBASED T ROWE PRICE ASSOCIATES IS HAVING ITS SECONDBEST MONTH EVER FOR STOCK FUNDS IN DECEMBER FALLING A LITTLE BEHIND OCTOBER INTERNATIONAL EQUITY FUNDS ARE ACCOUNTING FOR MORE THAN 82 OF THE RECENT FLOWS INTO STOCK FUNDS AT T ROWE PRICE IN BOSTON SCUDDER STEVENS & CLARK INC HAD A 66 INCREASE IN CASH PLACED INTO INTERNATIONAL EQUITY FUNDS COMPARED WITH NOVEMBER THE SHARPEST GAIN EVER IN THIS AREA SAYS GAVIN QUILL A VICE PRESIDENT IN MARKETING THE ACTIVITY IN INTERNATIONAL EQUITY ECLIPSED ALL OTHER INVESTMENTS YESTERDAY THE HIGHLY REGARDED SOGEN INTERNATIONAL FUND ANNOUNCED THAT IT WILL BE CLOSED TO NEW ACCOUNTS AS OF FEB 1 1994 FUNDS TEND TO CLOSE THEIR DOORS WHEN THEY ARE SWAMPED WITH TOO MUCH NEW MONEY ALL AT ONCE AT FRANKLIN RESOURCES INC IN SAN MATEO CALIF FOREIGN STOCKFUND SALES ACCOUNTED FOR 29 OF NEW SALES DOMESTIC EQUITY FUNDS ACCOUNTED FOR ONLY 18 PARTICULARLY POPULAR WERE TEMPLETON FOREIGN FUND AND TEMPLETON DEVELOPING MARKETS TRUST IN THE US SOME INVESTORS ARE BEING DRAWN TO THE BOLDER STOCK FUNDS FIDELITY'S MR LITVAK SAYS THE BOSTON FUND COMPANY IS SEEING STRONG INFLOWS OF CASH IN BOTH GROWTH FUNDS AND AGGRESSIVE GROWTH FUNDS AMG SAYS THERE IS A STEADY FLOW OF MONEY COMING INTO GROWTH AND GROWTHANDINCOME FUNDS WITH A PICKUP ALSO IN UTILITYFUND INVESTING CASH HOLDINGS AT STOCK FUNDS AMOUNTED TO 89 OF ASSETS AS NOVEMBER ENDED UNCHANGED FROM A MONTH EARLIER BUT DOWN SLIGHTLY FROM 95 A YEAR BEFORE NOVEMBER BOND SALES IN NOVEMBER BOND SALES PLUNGED TO THEIR LOWEST LEVEL SINCE OCTOBER 1992 WITH 41 BILLION COMPARED WITH 104 BILLION IN OCTOBER WHILE LONGTERM GOVERNMENT AND CORPORATE BOND SALES REMAIN ABOUT FLAT IN DECEMBER MANY MUTUALFUND COMPANIES SAY THERE IS CONTINUED BUYING OF JUNKBOND FUNDS AND A PICKUP IN BUYING OF TAXFREE MUNICIPAL BOND FUNDS VANGUARD STILL IS SEEING A TRICKLE OF REDEMPTIONS ON TAXABLEBOND FUNDS SUCH AS ITS PORTFOLIO INVESTING IN GINNIE MAE SECURITIES BUT A SPOKESMAN SAYS THERE IS A TURNAROUND IN TAXFREE MUNIBOND FUNDS WHERE MONEY IS COMING IN AGAIN AT PUTNAM COS SALES OF GOVERNMENTBOND FUNDS ARE AT THEIR LOWEST LEVELS SINCE 1991 SAYS STEPHEN GIBSON HEAD OF MARKETING INVESTORS ARE DIVERSIFYING INTO INTERNATIONAL AND HIGHYIELD JUNKBOND FUNDS A STUDY OF INVESTOR SENTIMENT DONE BY THE UNIVERSITY OF MICHIGAN AT THE REQUEST OF FIDELITY SHOWED THAT INVESTORS' CONFIDENCE AND EXPECTATIONS JUMPED UP IN DECEMBER REBOUNDING AFTER THE PRIOR MONTH'S SMALL DROP INVESTORS' INTENTIONS TO BUY STOCKS AND BONDS WERE SAID TO REMAIN STRONG VANGUARD GROUP SAYS CASH FLOWING INTO ITS EQUITY MUTUAL FUNDS IN DECEMBER ROSE 100 FROM NOVEMBER NOT 10 AS REPORTED IN AN ARTICLE FRIDAY ABOUT SALES OF MUTUAL FUNDS 9312310060 931231 BUSINESS BRIEF FURR'S/BISHOP'S INC DEBTHOLDERS AGREE TO DEFER INTEREST ON NOTES UNTIL '95 FURR'S/BISHOP'S INC LUBBOCK TEXAS SAID HOLDERS OF ITS 11 SENIOR SECURED NOTES DUE JUNE 30 1998 AGREED TO DEFER UNTIL 1995 106 MILLION IN INTEREST PAYMENTS DUE TODAY THE RESTAURANT OPERATOR SAID 1929 MILLION OF THE NOTES WHICH WERE ISSUED BY ITS LIMITED PARTNERSHIP SUBSIDIARY CAFETERIA OPERATORS LP REMAIN OUTSTANDING FURR'S/BISHOP'S SAID THE DEFERRAL WILL ALLOW THE COMPANY TO UPGRADE FACILITIES AND AID IN RESTRUCTURING CAPITAL DISCUSSIONS WILL CONTINUE THE COMPANY SAID WITH ITS BANK LENDER HOLDERS OF THE 11 SENIOR SECURED NOTES AND GENERAL ELECTRIC PENSION TRUST WHICH WON A 54 MILLION ARBITRATION AWARD AGAINST FURR'S/BISHOP'S IN OCTOBER IN A DISPUTE OVER A STAKE IN THE PARTNERSHIP UNIT 9312310059 931231 WHO'S NEWS FIRST COMMONWEALTH FINANCIAL CORP FIRST COMMONWEALTH FINANCIAL CORP INDIANA PA ROBERT KOSLOW 58 YEARS OLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PEOPLES BANK OF WESTERN PENNSYLVANIA WAS NAMED A NEW DIRECTOR OF THIS BANKHOLDING COMPANY THE ACTION INCREASES THE SIZE OF THE COMPANY'S BOARD TO 20 MEMBERS FROM 19 MEMBERS FIRST COMMONWEALTH IS SCHEDULED TO COMPLETE THE ACQUISITION OF PEOPLES BANK TODAY MR KOSLOW WILL CONTINUE IN HIS CURRENT POST 9312310057 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 THAT IS 53OWNED BY A UNIT OF PIONEER ELECTRONIC CORP OF JAPAN TRIMARK SAID MARK AMIN CHAIRMAN WILL ASSUME THE RESPONSIBILITIES OF PRESIDENT AND CHIEF EXECUTIVE WHILE A SUCCESSOR FOR MR BURLAGE IS BEING SOUGHT 9312310056 931231 BUSINESS BRIEF CONSOLIDATED NATURAL GAS CO CNG UNIT SUBMITS REQUEST FOR A RATE INCREASE OF 22 CONSOLIDATED NATURAL GAS CO'S CNG TRANSMISSION CORP SAID IT SUBMITTED A GENERAL RATE FILING TO THE FEDERAL ENERGY REGULATORY COMMISSION THE FILING REQUESTS A 1066 MILLION OR 22 ANNUAL REVENUE INCREASE AND IS THE FIRST FILING SINCE THE COMPANY IMPLEMENTED ITS COMPREHENSIVE RESTRUCTURING TO COMPLY WITH THE FERC'S ORDER 636 THE COMPANY SAID CNG TRANSMISSION SAID IT REQUESTED A 14 RETURN ON EQUITY AND AN EFFECTIVE DATE OF FEB 1 1994 THE INCREASE WOULD BE SUBJECT TO REFUND IT SAID THE COMPANY ATTRIBUTED THE REQUEST PARTLY TO INCREASED OPERATING AND MAINTENANCE EXPENSES MATERIAL AND SUPPLY COSTS TAXES DEPRECIATION RATES AND COSTS FOR FACILITIES MADE OBSOLETE BY ORDER 636 CONSOLIDATED NATURAL IS BASED IN PITTSBURGH 9312310055 931231 CORRECTIONS & AMPLIFICATIONS ROY DELBYCK IS VICE PRESIDENT OF THE AMERICAN CHAMBER OF COMMERCE IN HONG KONG AN ARTICLE YESTERDAY INCORRECTLY SAID HE WAS THE GROUP'S PRESIDENT 9312310054 931231 PEPPER ANDSALT TO CALL MY DOG A DOG I CALL HIM A CANINEAMERICAN AT LEAST FOR AWHILE THAT IS UNTIL I'VE MADE MY PILE 9312310053 931231 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS FOR YEARS LAWYERS HAVE BROUGHT THEIR COURTROOM EXPERIENCE TO THE BOARDROOM AND COMPANIES HAVE WELCOMED THEM UNLIKE MOST CORPORATE DIRECTORS LAWYERS PROVIDE A BROAD VIEW OF THE LEGAL LANDSCAPE BUT THESE DAYS THE BOARDROOM IS ONE PLACE WHERE LAWYERS ARE LESS AND LESS LIKELY TO BE FOUND AS COMPANIES INCREASINGLY TURN TO OUTSIDE DIRECTORS TO MAKE POLICY AND COURTS MORE CAREFULLY SCRUTINIZE LAWYERS WHO GET TOO CLOSE TO THEIR CLIENTS MANY ATTORNEYS SAY THE PROBLEMS WITH TAKING A BOARD SEAT ARE STARTING TO OUTWEIGH THE BENEFITS THAT CONCLUSION WAS UNDERSCORED TWO WEEKS AGO WHEN THE INTERNAL REVENUE SERVICE DEFINED AN OUTSIDE DIRECTOR AS ONE WHO GETS NO COMPANY PAYMENTS APART FROM DIRECTORS' FEES NOW CORPORATIONS LOOKING FOR OUTSIDE DIRECTORS WON'T BE ABLE TO COUNT LAWYERS ANYMORE SAYS JAMES MELICAN EXECUTIVE VICE PRESIDENT FOR LEGAL AFFAIRS AT INTERNATIONAL PAPER CO OUTSIDE DIRECTORS ARE VALUABLE TO COMPANIES BECAUSE THEY ARE NEEDED FOR CERTAIN COMMITTEES AND THEIR VOTES ARE USUALLY GIVEN MORE DEFERENCE BY COURTS REVIEWING BOARD ACTIONS THERE ARE OTHER PITFALLS FOR LAWYERS WHO SERVE ON CORPORATE CLIENTS' BOARDS IF A LAWYER VOTES FOR A MOVE THAT GENERATES FEES FOR HIS LAW FIRM HE RISKS ACCUSATIONS OF SELFDEALING AND A MALPRACTICE SUIT IF THERE'S A TAKEOVER A LAWYERDIRECTOR HAS TO DISCLOSE THE LAW FIRM'S POSSIBLE INTEREST IN THE RESULT AND ITS TIES TO THE OTHER PARTY THE LAWYER'S ROLE IS ALSO SUBJECT TO REVIEW BY SECURITIES REGULATORS THE CLIENT COMPANY CAN ALSO BE HARMED WHEN A LAWYER ADVISES FELLOW BOARD MEMBERS THE CONVERSATIONS CAN BE CONSIDERED BOARD DELIBERATIONS WHICH AREN'T COVERED BY THE ATTORNEYCLIENT PRIVILEGE ALSO A LAWYERDIRECTOR INTERESTED IN WINNING FUTURE BUSINESS MIGHT CHANGE A VOTE IN ORDER TO PLACATE OTHER BOARD MEMBERS OR OFFICERS SOME LAWYERS WHO BECAME DIRECTORS OF CLIENT COMPANIES HAVE LATELY LIVED TO REGRET IT WASHINGTON ATTORNEYS CLARK CLIFFORD AND ROBERT ALTMAN WERE INDICTED FOR THEIR ALLEGED ROLE IN THE BCCI SCANDAL PARTLY ON THE THEORY THAT THEIR POSITIONS AS TOP OFFICERS AND BOARD MEMBERS MEANT THEY WEREN'T OBLIVIOUS TO ALLEGED WRONGDOING WHICH A LAWYER WHO WASN'T A DIRECTOR COULD PLAUSIBLY CLAIM TO BE ALTHOUGH MR ALTMAN WAS ACQUITTED LAST AUGUST AND MR CLIFFORD WASN'T TRIED FOR HEALTH REASONS LEGAL EXPERTS SAY THE CHARGES MIGHT HAVE BEEN AVOIDED ALTOGETHER IF THE TWO HADN'T BEEN BOARD MEMBERS IN ANOTHER CASE FOUR FORMER LAWYERS FOR THE FAILED SUNRISE SAVINGS & LOAN ASSOCIATION WERE INDICTED LAST FEBRUARY ON CHARGES OF CONSPIRING TO MAKE SHAM LOANS TWO OF THEM HAD BEEN MORE THAN JUST LEGAL ADVISERS TO THE FLORIDA THRIFT THEY HAD SERVED AT DIFFERENT TIMES AS SUNRISE CHAIRMEN EVEN SO SOME 78 OF THE COUNTRY'S 250 LARGEST INDUSTRIAL CORPORATIONS HAVE A LAWYER ON THE BOARD ACCORDING TO AN ANNUAL SURVEY IN THE NATIONAL LAW JOURNAL THE NUMBER HAS DROPPED SLIGHTLY SINCE 1988 THE FIRST YEAR THE SURVEY WAS PUBLISHED WHEN 83 OF THE COMPANIES HAD A LAWYERDIRECTOR THIS PICTURE IS RADICALLY DIFFERENT FROM A DECADE OR SO EARLIER WHEN MOST MAJOR CORPORATIONS STILL TURNED TO A SINGLE LAW FIRM FOR ALL OF THEIR LEGAL WORK IT WAS ALMOST THE RULE THEN THAT A TOP PARTNER AT THE FIRM WOULD SERVE ON THE CLIENT'S BOARD NOW AS COMPANIES SEEK TO CUT COSTS BY SPREADING LEGAL WORK AROUND THEY ARE MORE RELUCTANT TO BESTOW SUCH FAVORS ON ONE LAW FIRM SOME LEGAL EXPERTS SUGGEST THAT LARGE COMPANIES SHOULD HAVE AT LEAST ONE LAWYERDIRECTOR WHO ISN'T A MEMBER OF ONE OF THE COMPANY'S OUTSIDE LAW FIRMS IN MOMENTS OF MANAGEMENT CRISIS SUCH AS A TAKEOVER AN INDEPENDENT LAWYER COULD GIVE OTHER BOARD MEMBERS CANDID LEGAL ADVICE OUT OF THE EARSHOT OF MANAGEMENT SAYS EINER ELHAUGE A PROFESSOR AT THE UNIVERSITY OF CALIFORNIA BERKELEY SCHOOL OF LAW FOR EXAMPLE INTERNATIONAL PAPER HAS ONE LAWYER ON ITS 15MEMBER BOARD FORMER HUD SECRETARY SAMUEL PIERCE AND MR MELICAN SAYS MR PIERCE DOESN'T HANDLE ANY OF THE PURCHASE NY COMPANY'S LEGAL WORK BUT SOME INHOUSE LAWYERS AND ACADEMICS SAY THIS TYPE OF SITUATION CAN BECOME AWKWARD AS A PRACTICAL MATTER IF THE LAWYER IS PRESSURED BY LAW FIRM PARTNERS TO WIN THE COMPANY'S BUSINESS MANY LAWYERS WHO SERVE AS DIRECTORS OF CLIENT COMPANIES DEFEND THE PRACTICE NOTING THAT THEY STEP ASIDE WHEN MATTERS THAT AFFECT THEIR LAW FIRMS ARISE BENJAMIN CIVILETTI A FORMER US ATTORNEY GENERAL AND PARTNER AT BALTIMORE'S VENABLE BAETJER & HOWARD SITS ON THE BOARDS OF BETHLEHEM STEEL CORP AND MBNA CORP AND SAYS THOSE BOARDS DON'T USUALLY CONSIDER ISSUES THAT INVOLVE HIS MAIN PRACTICE AREAS LITIGATION AND ANTITRUST HE SAYS HE STEPS ASIDE WHEN THERE ARE POTENTIAL CONFLICTS BUT OTHER LAWYERS AND INSURERS ARE STARTING TO RAISE THEIR EYEBROWS ONE OF THE LARGEST LAWFIRM MALPRACTICE CARRIERS ATTORNEYS' LIABILITY ASSURANCE SOCIETY DISCOURAGES POLICYHOLDERS FROM SERVING ON BOARDS OF PUBLIC COMPANIES AND EXCLUDES FROM MALPRACTICE COVERAGE LAWYERS WHO HOLD TOP BOARD POSTS SUCH AS CHAIRMAN OR VICE CHAIRMAN IT'S PERFECTLY CLEAR THROUGHOUT THE COUNTRY THAT LAWYERS WHO ARE DIRECTORS AND ALSO OUTSIDE COUNSEL ARE BEING SUED IN SITUATIONS WHERE THEY WOULDN'T HAVE BEEN SUED IF THEY HADN'T HAD THAT DUAL ROLE SAYS ROBERT E O'MALLEY VICE CHAIRMAN OF ALAS AS A RESULT MANY COMPANIES ARE INSTITUTING POLICIES FORBIDDING LAWYERS TO SERVE ON THEIR BOARDS SOME SUCH AS THE IDAHO WOODPRODUCTS MAKER BOISE CASCADE CORP HAVE HAD SUCH RULES IN PLACE FOR YEARS SAYS FORMER GENERAL COUNSEL JOHN CLUTE AND MANY LARGE LAW FIRMS SUCH AS NEW YORK'S WEIL GOTSHAL & MANGES GENERALLY DON'T LET PARTNERS BECOME DIRECTORS IRA MILLSTEIN SENIOR PARTNER AT THE FIRM SAYS HE HAS BEEN ASKED RECENTLY TO SERVE ON A COUPLE OF CORPORATE BOARDS CITING HIS FIRM'S POLICY AND HIS PERSONAL DISCOMFORT WITH BEING A CLIENT AND A LAWYER AT THE SAME TIME HE SAYS HE HAS DECLINED THE OFFERS FOR THE MOMENT 9312310052 931231 BUSINESS BRIEF FIRST COMMONWEALTH FINANCIAL CORP PEOPLES BANK ACQUISITION FOR 25 MILLION IS CLEARED FIRST COMMONWEALTH FINANCIAL CORP INDIANA PA SAID IT RECEIVED NECESSARY APPROVALS FOR THE CLOSING TODAY OF ITS ANNOUNCED ACQUISITION OF PEOPLES BANK OF WESTERN PENNSYLVANIA BASED IN NEW CASTLE PA THE BANK HOLDING COMPANY SAID THE ACQUISITION VALUED AT ABOUT 25 MILLION IS A STOCKFORSTOCK TRANSACTION PEOPLES BANK SHAREHOLDERS WILL RECEIVE TWO FIRST COMMONWEALTH COMMON SHARES FOR EACH PEOPLES BANK SHARE PEOPLES BANK HAS ASSETS OF ABOUT 156 MILLION THE COMPANY SAID UPON COMPLETION OF THE ACQUISITION FIRST COMMONWEALTH WILL HAVE ASSETS OF ABOUT 19 BILLION AND WILL OPERATE 69 BRANCH OFFICES IN 14 COUNTIES IN CENTRAL AND WESTERN PENNSYLVANIA 9312310051 931231 LETTERS TO THE EDITOR W EDWARDS DEMING THE PROPHET OF QUALITY' THE DEATH OF W EDWARDS DEMING MARKS THE PASSING OF A QUIET HERO OF THE 20TH CENTURY KNOWN AS THE PROPHET OF QUALITY DEMING CONTRIBUTED TO THE DEVELOPMENT OF STATISTICAL THEORY AND METHOD WIDELY USED IN INDUSTRY HIS WORK CHALLENGED THE FOUNDATIONS OF MODERN BUSINESS MANAGEMENT THEORY BY PROPOSING THAT THE NEVERENDING PURSUIT OF IMPROVED QUALITY WOULD INEVITABLY LOWER COST IMPROVE PROFITS AND BRING GREATER LEVELS OF CUSTOMER SATISFACTION TO BUSINESS THAN METHODS THAT VIEWED QUALITY AS AN EXPENSE THIS THEORY OF MANAGEMENT COMMONLY KNOWN AS TOTAL QUALITY MANAGEMENT WAS CREDITED WITH TRANSFORMING JAPAN FROM POVERTY INTO AN INDUSTRIAL GIANT IN THE POST WORLD WAR II PERIOD REGRETTABLY HOWEVER THE SUCCESS OF DEMING'S TEACHINGS IN BUSINESS HAS OBSCURED ITS APPLICATION TO SOCIETY DEMING'S INSIGHT THAT INDIVIDUAL PERFORMANCE IS LARGELY DICTATED BY THE SYSTEM IN WHICH PEOPLE WORK LIVE AND ARE EDUCATED CONTRADICTS CONVENTIONAL WISDOM WHICH VIEWS THE INDIVIDUAL AS BOTH THE CAUSE AND THE CURE OF SOCIAL PROBLEMS SUCH AS POVERTY CRIME AND ILLITERACY ONLY THROUGH THE APPLICATION OF STATISTICAL METHOD TO UNDERSTAND AND CONTINUALLY IMPROVE THE QUALITY OF SYSTEMS DEFINING OUR ENVIRONMENT DID DEMING BELIEVE WE COULD OBTAIN LASTING SOCIAL PROGRESS PERHAPS THE 21ST CENTURY WILL BRING THE FULL REALIZATION OF DEMING'S GREATER HUMAN VISION AS WERE THOUSANDS OF PEOPLE AROUND THE WORLD WHO HAVE WORKED WITH DR W EDWARDS DEMING WE AT EASTMAN CHEMICAL CO WERE SADDENED TO HEAR OF HIS PASSING ONLY A FEW DAYS AGO WE CELEBRATED AS PRESIDENT CLINTON PRESENTED THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD TO EASTMAN AND TO AMES RUBBER CORP THE AWARD RECOGNIZES THE SUCCESSFUL IMPLEMENTATION OF MANY PRINCIPLES DR DEMING PRESENTED OVER THE PAST HALFCENTURY EASTMAN HAS BEEN ASSOCIATED WITH A NUMBER OF QUALITY CONSULTANTS WE'VE LEARNED FROM EACH OF THEM WHILE EASTMAN'S TOTAL QUALITY EFFORT WAS NOT PATTERNED AFTER ONE SINGLE CONSULTANT DR DEMING HAS HAD THE GREATEST IMPACT UPON OUR THINKING HIS FOURDAY SEMINAR AT OUR HEADQUARTERS IN THE LATE1980S WAS AN IMPORTANT EVENT IN THE EVOLUTION OF PIR QUALITY EXCELLENCE AS WE AND OTHER COMPANIES CONTINUE ON THE NEVERENDING QUALITY JOURNEY DR DEMING'S LEGACY WILL LIVE ON 9312310050 931231 BUSINESS BRIEF EXPLORATION CO OF LOUISIANA INC OIL CONCERN TO SELL LAND REFINANCE ITS BANK DEBT EXPLORATION CO OF LOUISIANA INC LAFAYETTE LA SAID IT AGREED TO SELL LAND FOR 15 MILLION INTENDS TO REFINANCE 30 MILLION OF DEBT AND GOT AN OFFER TO SELL AN INTEREST IN AN OIL EXPLORATION PROSPECT IN CHINA IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY SIGNED A LETTER OF INTENT TO SELL 62500 ACRES OF LAND FOR 15 MILLION EXPLORATION CO DECLINED TO NAME THE BUYER THE COMPANY SAID IT RECEIVED A COMMITMENT FROM INTERNATIONALE NEDERLANDEN US CAPITAL CORP THAT WILL ALLOW IT TO REFINANCE ITS EXISTING 30 MILLION OF BANK DEBT WITH A NEW CREDIT FACILITY PRINCIPAL PAYMENTS BEGIN JULY 1995 AND END IN SEPTEMBER 1999 THE COMPANY SAID EXPLORATION CO ALSO SAID IT RECEIVED AN OFFER FROM A LARGE OIL COMPANY TO BUY A ONETHIRD INTEREST IN ITS RIGHTS TO DRILL IN CHINA 9312310049 931231 REVIEW & OUTLOOK EDITORIAL ASIDES TO 1994 GLANCING OVER THE EVENTS OF THE CLOSING YEAR WE'RE STRUCK BY A STRAIN OF WELL MADNESS IT THANKFULLY HASN'T REACHED HISTORIC PROPORTIONS EXCEPT OF COURSE IN BOSNIA BUT IN THE US IT WAS THE YEAR OF DAVID KORESH IN WACO COLIN FERGUSON ON A LONG ISLAND COMMUTER TRAIN MASS MURDER IN A SAN FRANCISCO UNEMPLOYMENT OFFICE AND SERIAL KILLINGS OF FOREIGN TOURISTS IN MIAMI OF BOMBS CLOSING THE WORLD TRADE CENTER AND SENT THROUGH THE MAIL TO PROFESSORS AND FAMILIES OF ESTRANGED LOVERS OF SEX CHARGES SWIRLING AROUND JOEY BUTTAFUOCO PRESIDENT CLINTON SENATOR PACKWOOD MICHAEL JACKSON AND ASSORTED PRIESTS IN THE FACE OF SIGNS OF A FRAYING SOCIAL ORDER THE DAYTODAY DOINGS OF POLITICIANS AND STATESMEN SEEM ODDLY IRRELEVANT THIS IS NOT A CHEERFUL NOTE ON WHICH TO CLOSE THE YEAR WE REALIZE EXCEPT PERHAPS IN THE HOPE THAT SOMEHOW SOCIETY MAY HAVE REACHED A TURNING POINT AND 1994 MAY BE SANER 9312310048 931231 LEISURE & ARTS ON SPORTS AMATEUR JOCKS PUSH AND SWISH TO TOP BY FREDERICK C KLEIN WE ENJOY SPORTS FOR MANY REASONS BUT A COUPLE IN PARTICULAR COME TO MIND AT THIS YEAR'S END ONE IS THE UNPREDICTABILITY THAT ATTACHES TO ANY ATHLETIC ENDEAVOR THE OTHER IS THAT THE ARENA IS ONE AREA IN WHICH JUSTICE DEFINED AS REWARD FOR WORK WELL AND FAITHFULLY DONE REGULARLY IS SERVED THOSE REFLECTIONS ARE SPURRED BY THE TWO FEATS I CONSIDER TO BE THE BEST I WITNESSED DURING 1993 FOLLOWERS OF THIS COLUMN WON'T BE SURPRISED TO LEARN THAT NEITHER INVOLVED THE PROFESSIONALS OR APPRENTICE PROS WHOSE EXPLOITS DOMINATED THE SPORTS PAGES MICHAEL JORDAN TROY AIKMAN CHARLEY WARD JOE CARTER STEFFI GRAF PETE SAMPRAS AND PERNELL WHITAKER ALL DID WONDERFUL THINGS DURING THE LAST 12 MONTHS BUT THEY AND THEIR LIKE HAD NO MONOPOLY ON WONDERFULNESS THEY NEVER DO ONE OF THE EVENTS TO WHICH I REFER EPITOMIZED SPORTS' ELEMENT OF UNPREDICTABILITY INDEED FEW OF THE 18700 OR SO PEOPLE WHO WITNESSED IT HAD ANY IDEA IT WOULD BE A PART OF THE GAME THEY'D COME TO SEE IT OCCURED ON APRIL 14 DURING A BREAK IN THE ACTION OF A NATIONAL BASKETBALL ASSOCIATION GAME BETWEEN THE CHICAGO BULLS AND MIAMI HEAT AT CHICAGO STADIUM DON CALHOUN A 23YEAROLD OFFICESUPPLYSTORE CLERK FROM BLOOMINGTON ILL PLUCKED FROM THE CROWD FOR ONE OF THOSE AUDIENCEPARTICIPATION CONTESTS HEAVED A BASKETBALL ABOUT 75 FEET FROM ONE FREETHROW LINE THROUGH THE HOOP AT THE OTHER END OF THE COURT THEREBY WINNING 1 MILLION THE OTHER FEAT WAS ABOUT AS OPPOSITE TO CALHOUN'S AS CAN BE IMAGINED IT TOOK 24 HOURS TO COMPLETE AND WAS THE RESULT OF YEARS OF POINTED AND SOMETIMES PAINFUL PRACTICE BEGINNING AT 8 AM ON SATURDAY APRIL 24 AND ENDING JUST SHORT OF 8 THE NEXT MORNING 42YEAROLD CHARLES SERVIZIO FROM VICTORVILLE CALIF A SCHOOL TEACHER AT A BOYS' REFORMATORY DID 46001 PUSHUPS SETTING A WORLD'S RECORD I SAW CALHOUN'S SHOT NOT AS A REPORTER BUT AS A FAN I'VE HAD A PIECE OF A BULLS' SEASON TICKET FOR ABOUT 20 YEARS THE TEAM HAD STAGED THOSE SHOOTFOR1 MILLION STUNTS BEFORE WITH PREDICTABLE RESULTS THE PEOPLE WHO'D PREVIOUSLY BEEN PICKED LACKED THE STRENGTH AND HAND SIZE TO DO MUCH MORE THAN GET THE SIZABLE SPHEROID BRIEFLY ALOFT THAT'S WHY THEY WERE CHOSEN I GUESS BUT AS THE RANGY ATHLETICLOOKING CALHOUN TOOK TO THE FLOOR I REMARKED TO MY WIFE SUSIE THAT THIS TIME AT LEAST THEY'D PICKED A GUY WHO COULD CONTROL THE BALL CALHOUN DID MORE THAN THAT WITH A RUN OF JUST A FEW STEPS HE PITCHED THE BALL OVERHAND AND THE DESCENT OF ITS HIGH ARC SWISHED THE BASKET THERE WAS A MOMENTARY SILENCE AFTER WHICH THE STADIUM ERUPTED WITH JOY THE CELEBRATION WHICH WENT ON AND ON WAS JOINED BY THE BULLS IN FRONT OF WHOSE BENCH CALHOUN HAD LAUNCHED HIS TOSS OBVIOUSLY THEY WERE IMPRESSED WITH SOMEONE EARNING 1 MILLION FOR A FEWSECONDS WORK IT TAKES SOME OF THEM TWO OR THREE MONTHS TO MAKE THAT MUCH SURE CALHOUN'S BASKET WAS A FLUKE IT ALSO WAS SIMPLE PURE AND HYPEFREE NO ONE WHO SAW IT WILL FORGET IT NOT MANY PEOPLE WITNESSED SERVIZIO'S PUSHUPS RECORD IT TOOK PLACE IN THE FOYER OF THE CITY HALL IN FONTANA CALIF AS PART OF A COMMUNITYCABLE TELETHON TO RAISE MONEY FOR EXTRACURRICULAR ACTIVITIES AT FONTANA HIGH SCHOOL THE WHOLE SHOW KID DANCERS ADULT LIPSYNCHERS AND THE LIKE RAISED LITTLE MORE THAN 1000 BUT THE ORGANIZERS DECLARED THEMSELVES PLEASED IF YOU DO PUSHUPS YOU'LL UNDERSTAND HOW REMARKABLE SERVIZIO'S FEAT WAS A COUPLE HUNDRED OF THEM ARE A LOT 46001 ARE ALMOST INCONCEIVABLE AND IT'S AMAZING ANYONE WOULD EVEN TRY THAT MANY SOFT OF SPEECH AND MODEST OF PHYSIQUE SERVIZIO DECLINES TO PSYCHOANALYZE HIMSELF IT'S JUST SOMETHING I GOT INTO AND ENJOY HE SAYS ON PREVIOUS OCCASIONS THE 5FOOT10 165POUND FATHER OF TWO HAD DONE 40103 AND 43001 PUSHUPS RECORDS BOTH BUT THEY'D BEEN ECLIPSED BY A RUSSIAN WHO'D DONE 44141 SERVIZIO HAD PLANNED TO PUT AN EXCLAMATION POINT TO HIS NEW BLITZ BY PASSING 50000 AND DOING 50 FULLEXTENSION PUSHUPS EVERY 30 OR SO SECONDS WITH 30SECOND RESTS BETWEEN HAMMERED OUT MORE THAN 25000 IN THE FIRST NINE HOURS BUT LARGE BLISTERS ON BOTH PALMS SLOWED HIS PACE AND WOULD HAVE STOPPED HIM ALTOGETHER IF SOMEONE HADN'T RECOMMENDED TREATING THEM WITH EGG WHITES AFTER PASSING THE OLD MARK AT 345 AM SUNDAY HE TOOK IT EASY THE REST OF THE WAY AND EXHAUSTED DECLARED THE EFFORT TO BE HIS LAST BOTH STORIES HAD AFTERMATHS A FEW DAYS AFTER CALHOUN'S EPIC SHOT THE INSURANCE COMPANY THAT UNDERWROTE THE PRIZE SAID IT WOULDN'T PAY BECAUSE ITS CONTRACT SPECIFIED THAT NO ONE WHO'D PLAYED COLLEGE BASKETBALL COULD COMPETE AND CALHOUN HAD PLAYED 11 GAMES WITH A JUNIORCOLLEGE TEAM THIS IS WHY NATIONAL HEALTH CARE HAS A GOOD CHANCE OF ENACTMENT THE BULLS AND THE CONTEST'S TWO OTHER SPONSORS PROMISED TO MAKE THINGS GOOD AND GAVE CALHOUN THE FIRST OF WHAT THEY SAID WOULD BE 20 ANNUAL CHECKS FOR 50000 EACH CALHOUN WENT BACK TO HIS JOB BUT NOT FOR LONG THE SHOT HAD REKINDLED HIS DREAM OF SECURING EMPLOYMENT IN THE SPORT THAT QUEST ENDED HAPPILY EARLIER THIS MONTH WHEN HE SIGNED TO PLAY WITH A HARLEM GLOBETROTTERS TRAVELING TEAM THE GLOBIES DON'T MAKE THEIR PLAYERS RICH BUT HEY DON'S ALREADY PRETTY WELL SET SERVIZIO HASN'T CASHED IN ON HIS RECORD HE SAYS THE ONLY COMMERCIAL OVERTURE THAT FOLLOWED IT WAS A REQUEST FOR A PHOTO FROM A MAKER OF PRUNE JUICE AS A PRELUDE TO A POSSIBLE ENDORSEMENT THE COMPANY NEVER CALLED BACK I WASN'T SURPRISED HE NOTES I'M SURE THEY EXPECTED AN ARNOLD SCHWARZENEGGER TYPE SERVIZIO ALSO STILL HAS AN ATHLETIC DREAM OF DOING 50000 PUSHUPS IN A DAY AND SAYS HE'S TRAINING FOR ANOTHER TRY AT IT IN FEBRUARY HE THINKS THAT MAYBE ESPN2 WILL COVER IT YES BACK IN APRIL HE SAID HE'D RETIRE BUT WHAT ATHLETE EVER GOES OUT ON TOP BESIDES JORDAN I MEAN 9312310047 931231 BUSINESS BRIEF AVONDALE INDUSTRIES INC LOSS SEEN FOR QUARTER YEAR IN SPITE OF NAVY SETTLEMENT AVONDALE INDUSTRIES INC NEW ORLEANS SAID IT REACHED A SETTLEMENT WITH THE US NAVY ON CONTRACT ADJUSTMENTS FOR THE CONSTRUCTION OF 11 VESSELS BUT STILL EXPECTS TO RECORD A FOURTHQUARTER AND FULLYEAR LOSS THE COMPANY SAID THE AGREEMENT WITH THE NAVY FORBIDS AVONDALE A SHIPBUILDING CONCERN FROM IMMEDIATELY DISCLOSING THE SIZE OF THE SETTLEMENT BUT BRUCE HICKS TREASURER SAID AVONDALE WILL USE SOME OF THE PROCEEDS TO PAY DOWN AND RETIRE ABOUT 57 MILLION OF BANKCREDIT FACILITIES AND SENIOR NOTES IN THE 1992 FOURTHQUARTER AVONDALE HAD A LOSS OF 32 MILLION OR 22 CENTS A SHARE ON REVENUE OF 1251 MILLION FOR ALL OF 1992 THE COMPANY HAD A LOSS OF 112 MILLION OR 78 CENTS A SHARE ON REVENUE OF 592 MILLION MR HICKS SAID THE COMPANY EXPECTS ITS 1993 FOURTHQUARTER LOSS TO BE SLIGHTLY LARGER THAN A YEAR EARLIER HE SAID THE COMPANY EXPECTS THAT ITS FULLYEAR LOSS WILL BE A BIT LESS THAN IN 1992 9312310046 931231 CREDIT MARKETS PRICE OF LONG BOND PLUNGES IN THIN TRADING ON FRESH REPORTS INDICATING ECONOMIC GROWTH BY THOMAS D LAURICELLA AND LESLIE SCISM STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE PRICE OF THE BENCHMARK 30YEAR US TREASURY BOND PLUNGED YESTERDAY IN UNUSUALLY THIN TRADING WITH MANY MONEY MANAGERS AND TRADERS VACATIONING FOR THE HOLIDAY SEASON AND THEIR 1993 BOOKS ALREADY CLOSED BUYERS WERE SCARCE AS SOME INVESTORS DUMPED THEIR HOLDINGS ON ANOTHER ROUND OF ECONOMIC DATA SHOWING A STRENGTHENING ECONOMY THE DECLINES WERE EXAGGERATED BY THE THIN YEAREND CONDITIONS WITH LIMITED LIQUIDITY TRADES NORMALLY TOO SMALL TO INFLUENCE THE BOND MARKET CAN HAVE A BIG IMPACT IT'S A VERY THIN MARKET SAID JAY GOLDINGER A TRADER AT CAPITAL INSIGHT INC IN BEVERLY HILLS CALIF A LOT OF PEOPLE DON'T WANT TO TAKE POSITIONS SO THE MARKET'S MORE VOLATILE THE ROUT BEGAN AS SOON AS THE LABOR DEPARTMENT REPORTED AN UNEXPECTEDLY SHARP DROP IN UNEMPLOYMENT CLAIMS FOR THE WEEK ENDED DEC 25 BY THE MARKET'S CLOSE THE 30YEAR TREASURY LOST MORE THAN 1 1/4 POINTS OR MORE THAN 1250 FOR EACH 1000 IN FACE VALUE THE LONG BOND ENDED AT 98 22/32 AND ITS YIELD WHICH MOVES INVERSELY TO PRICE JUMPED TO 634 UP FROM 624 WEDNESDAY IT WAS THE FOURTH CONSECUTIVE DAY OF DECLINES FOR THE 30YEAR BENCHMARK ISSUE BRINGING THE TOTAL FOURDAY LOSS TO NEARLY 1 3/4 POINTS ALL WEEK THE TREASURY MARKET ABSORBED PUNCH AFTER PUNCH FROM NEWS OF A STRONGER ECONOMY WITHOUT SUFFERING MUCH DAMAGE BUT YESTERDAY A FRESH DOSE OF ROBUST ECONOMIC DATA SENT INVESTORS REELING THE MARKET OPENED BY TUMBLING ON THE NEWS OF THE DROP IN UNEMPLOYMENT CLAIMS WHICH FELL BY 39000 TO 291000 MOST FORECASTS HAD CENTERED ON CLAIMS HOLDING LITTLE CHANGED DURING THE WEEK BOND INVESTORS FEAR AN IMPROVED ECONOMY BECAUSE IT CAN LEAD TO FASTER INFLATION WHICH ERODES THE VALUE OF FIXEDINCOME INVESTMENTS SOME ANALYSTS CAUTIONED AGAINST READING TOO MUCH INTO THE CLAIMS FIGURES ARGUING THAT THE NUMBERS MAY NOT BE PROPERLY ADJUSTED FOR SEASONAL FACTORS NONETHELESS AFTER A BRIEF PAUSE THE SELLING RESUMED AT MIDMORNING WHEN NOVEMBER SINGLEFAMILY HOME SALES WERE RELEASED SALES SURGED 113 TO A 807000UNIT ANNUAL RATE THE HIGHEST LEVEL SINCE APRIL 1986 THE CHICAGO PURCHASING MANAGERS' INDEX MEANWHILE EDGED LOWER TO 626 FOR DECEMBER FROM 653 IN NOVEMBER BUT IT REMAINED AT A LEVEL CONSISTENT WITH STRONG LOCAL MANUFACTURING ACTIVITY THE STRENGTH OF THE UNEMPLOYMENT AND HOUSING NUMBERS WAS ENOUGH TO BRING IN A COUPLE PEOPLE AS SELLERS WHO WOULDN'T HAVE BEEN INVOLVED HAD THE NUMBERS NOT BEEN SO STRONGSELLERS WHO WOULD HAVE BEEN MORE THAN WILLING TO WAIT UNTIL THE NEW YEAR TO RESUME TRADING SAID W TERRENCE PIGOTT A TRADER WITH DAIWA SECURITIES AMERICA INC MOST BUYERS WERE SHORT COVERING HE SAID WHICH MEANS THEY WERE BUYING SECURITIES TO COVER SHORT SALES IN A SHORT SALE A TRADER SELLS BORROWED SECURITIES IN HOPES OF REPLACING THEM LATER AT A LOWER PRICE AND POCKETING THE DIFFERENCE SOME OF THE SELLOFF WAS LINKED TO THE FACT THAT TRADING IN THE BOND FUTURES CONTRACT ENDED AT 1 PM EST YESTERDAY THAT MEANT THAT TRADERS WHO ORDINARILY WOULD HAVE SOLD FUTURES CONTRACTS AS A HEDGE AGAINST LOSSES INSTEAD WERE FORCED TO UNLOAD THE TREASURYS THEMSELVES INTERMEDIATETERM TREASURYS ALSO WERE HAMMERED THE PRICE OF THE BENCHMARK 10YEAR NOTE FELL 23/32 TO 99 19/32 TO YIELD 579 THE SEVENYEAR NOTE DROPPED 18/32 TO 100 24/32 TO YIELD 534 BUT THE PRICE OF THE TWOYEAR NOTE DROPPED JUST 3/32 AND THE ONEYEAR AND SIXMONTH BILLS ROSE MODESTLY IN PRICE WHILE THE HIGHER YIELDS PRODUCED BY THE DOWNDRAFT MIGHT OTHERWISE HAVE BEEN VIEWED AS ATTRACTIVE TRADERS AND INVESTORS WERE UNWILLING TO GO ON BUYING SPREES AT YEAR END AT THIS TIME OF THE YEAR MANAGERS ARE CLOSING THEIR BOOKS AND NOBODY IS GOING TO STICK OUT THEIR NECKS SAID ROBERT ANDRES HEAD OF FIXEDINCOME INVESTING AT MARTINDALE ANDRES & CO CONSHOHOCKEN PA IF THEY OWN BONDS THEY WANT TO GET OUT OF THE WAY BECAUSE THE NUMBERS WE'VE SEEN ARE POSITIVE FOR THE ECONOMY SOME MARKET PARTICIPANTS SAID YESTERDAY'S LOSSES REFLECT A SHIFT IN SENTIMENT FOR WEEKS MANY INVESTORS ASSUMED THAT ECONOMIC GROWTH WOULD SLOW IN EARLY 1994 BUT THE EVERSTRONGER ECONOMIC REPORTS HAVE REDUCED THE LIKELIHOOD FOR A SLACKENING OF BUSINESS ACTIVITY SAY MANY TRADERS MICHAEL MORAN CHIEF ECONOMIST AT DAIWA SECURITIES AMERICA SAID YESTERDAY'S REPORT ON SINGLEFAMILY HOME SALES PAIRED WITH A ROSY REPORT WEDNESDAY ON EXISTINGHOME SALES SIGNALS A LOT OF VIGOR IN THE HOUSING INDUSTRY AND IT WILL BE AN AREA THAT CARRIES MOMENTUM INTO 1994 HE ANTICIPATES INCREASED PURCHASES OF HOME FURNISHINGS FOR EXAMPLE DESPITE THE STRONG ECONOMIC NEWS SHORTTERM INTEREST RATES HELD RELATIVELY STABLE IT SEEMS AS IF THE MARKET IS NOT EXPECTING A NEARTERM TIGHTENING FROM THE FEDERAL RESERVE SAID MR MORAN WHO HIMSELF ANTICIPATES SUCH A MOVE IN THE LATTER PART OF THE FIRST QUARTER MARKET PARTICIPANTS ARE SPLIT OVER WHETHER THE MARKET WILL RECOVER IN THE NEW YEAR SOME LIKE JEFFREY TYLER A PORTFOLIO MANAGER AT BENHAM GROUP SAID THAT HE WAS REALLY NOT ALL THAT WORRIED ABOUT FURTHER DAMAGE TO THE BOND MARKET AS LONG AS INFLATION REMAINS UNDER CONTROL WHILE HE THINKS THE BOND YIELD COULD BACK UP TO 65 HE NOTED THAT THERE ARE STILL A LOT OF PEOPLE LOOKING FOR AN OPPORTUNITY TO BUY TRADING IN THE BOND MARKET WILL END EARLY TODAY AT 2 PM EST AHEAD OF NEW YEAR'S CORPORATE BONDS FOLLOWED THE PLUMMETING TREASURYS MARKET LOWER IN LIGHT TRADING LEAVING THE SPREAD IN YIELDS UNCHANGED JUNKBOND PRICES ENDED UNCHANGED NO NEW CORPORATE DEBT WAS PRICED AND NONE IS SCHEDULED TO BE PRICED TODAY OR MONDAY FALLOUT FROM FINANCIAL TURMOIL SURROUNDING THE BANCO ESPANOL DE CREDITO KNOWN AS BANESTO MAY PUT PRESSURE ON THE SPANISH BANK'S PREFERRED STOCK AND DEBT WHEN THE MARKET BECOMES MORE ACTIVE NEXT WEEK SPAIN'S CENTRAL BANK IS LAUNCHING A HUGE RESTRUCTURING PLAN TO SAVE BANESTO SPAIN'S FOURTHLARGEST BANK OTHER SPANISH BANKS MAY HAVE TO HELP PICK UP THE COST OF THE RESTRUCTURING EFFORT BANESTO HAS 150 MILLION OF YANKEE BONDS OUTSTANDING THROUGH BANESTO DELAWARE INC A YANKEE BOND IS A DOLLARDENOMINATED SECURITY ISSUED BY A FOREIGN ENTITY IN THE US MOODY'S INVESTORS SERVICE INC PLACED BANESTO'S LONGTERM AND SHORTTERM RATINGS ON REVIEW FOR POSSIBLE DOWNGRADE WEDNESDAY AFFECTING ABOUT 18 BILLION OF LONGTERM DEBT MOST OF WHICH WAS SOLD IN EUROPE THE REVIEW INCLUDES BANESTO'S YANKEE ISSUE WHICH CARRIES A BAA2 RATING AMONG SECONDARY ISSUES WESTERN CO OF NORTH AMERICA'S 12875 BONDS DUE 2002 ROSE IN PRICE BY A POINT TO 119 3/4 AND THE YIELD TO THE FIRST CALL DATE FELL TO 804 FROM 831 ACCORDING TO ONE TRADER EARLIER THIS WEEK THE FORT WORTH TEXAS OIL AND GAS WELLSERVICING AND DRILLING CONCERN ANNOUNCED A TENDER FOR THE BONDS PRICES OF MUNICIPAL BONDS ENDED UNCHANGED TO LOWER AFTER FAILING TO RECOVER FROM AN EARLY FALL WITH TREASURYS ACTIVITY WAS AGAIN VERY THIN IN SECONDARY TRADING VALDEZ ALASKA'S 565 BONDS OF 2028 FINISHED 1/4 POINT LOWER AT 99 3/4 TO YIELD 565 DESPITE YESTERDAY'S SCATTERED SALES AND PLENTIFUL EVIDENCE OF INCREASING US ECONOMIC STRENGTH SENTIMENT ABOUT MUNIS REMAINS BULLISH AS 1994 APPROACHES WE'RE BULLISH EVEN IN THE LIGHT OF AN IMPROVING ECONOMY SAID HANS HANF A TRADER AT PRUDENTIAL SECURITIES INC MR HANF AND OTHER MUNI SPECIALISTS SAY THE BULLISH MOOD ABOUT THE MARKET STEMS FROM WHAT IS EXPECTED TO BE A VERY POSITIVE SUPPLYDEMAND PICTURE AT THE START OF 1994 SUPPLY WILL VERY LIKELY DECLINE SUBSTANTIALLY IN JANUARY DUE TO BOND CALLS REDEMPTIONS AND SLOWER ISSUANCEJUST WHEN DEMAND FOR MUNIS MAY START TO PICK UP IN RESPONSE TO THE FEDERAL INCOMETAX INCREASES ENACTED THIS YEAR FEW ISSUES TOTALING MORE THAN 100 MILLION ARE CURRENTLY SCHEDULED TO BE PRICED NEXT WEEK PRICES OF MORTGAGE SECURITIES DECLINED BUT NOT AS SEVERELY AS THOSE OF TREASURY BONDS BOTH WALL STREET AND INSTITUTIONAL PLAYERS SEEM TO BE LOOKING POSITIVELY AT THE MORTGAGEBOND MARKET FOR THE NEW YEAR WE ARE AS A FIRM AND IN OUR RESEARCH CERTAINLY UPPING THE PERCENTAGE OF MORTGAGES THAT SHOULD BE IN THAT MODEL PORTFOLIO FOR 1994 SAID ALLEN SIEGAL HEAD OF MORTGAGEBACKED SECURITIES TRADING AT CS FIRST BOSTON INC AMONG PRICES OF 65 SECURITIES FOR JANUARY DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 15/32 LOWER AT 99 5/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ENDED 17/32 LOWER AT 99 6/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 16/32 LOWER AT 99 3/32 NEWS RELEASED AFTER THE MARKET CLOSED WEDNESDAY MAY HAVE BROUGHT MORE CONVERTS TO THE SECTOR THE MORTGAGE BANKERS ASSOCIATION REPORTED THAT ITS INDEX OF HOMEOWNER REFINANCING ACTIVITY FELL TO 510 IN THE WEEK ENDED DEC 24 FROM A REVISED 6161 IN THE PREVIOUS WEEK AND LOAN APPLICATIONS WERE DOWN 25 ACCORDING TO THE ASSOCIATION THOSE FACTS POINT TO A MUCH MORE BULLISH PREPAYMENT ENVIRONMENT IN 1994 ANALYSTS SAY 9312310045 931231 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BALLY'S PARK PLACE FUNDING INC A UNIT OF BALLY MANUFACTURING CORP AN OFFERING OF 380 MILLION OF FIRST MORTGAGE NOTES VIA MERRILL LYNCH & CO AND JEFFERIES & CO INDIANAPOLIS POWER & LIGHT CO A UNIT OF IPALCO ENTERPRISES INC A SHELF OFFERING FOR UP TO 235 MILLION OF FIRST MORTGAGE BONDS VIA DILLON REED & CO SOURCE CAPITAL INC AN EXCHANGE OFFERING FOR PREFERRED SHAREHOLDERS OF ONE PREFERRED SHARE FOR TWOTHIRDS OF A COMMON SHARE THE PREFERRED SHARES REDEEMABLE AT COMPANY'S OPTION AT 2750 A SHARE PLUS ACCRUED INTEREST AND DIVIDENDS ALSO AN OFFERING OF ONE ADDITIONAL SHARE FOR EVERY SIX HELD BY COMMON SHAREHOLDERS AT A PRICE EQUAL TO THE HIGHER OF NET ASSET VALUE OR 90 OF THE MARKET PRICE VIMRX PHARMACEUTICALS INC AN OFFERING OF 1380 UNITS AT 5000 A UNIT INCLUDING 180 UNITS SUBJECT TO THE UNDERWRITERS' OVERALLOTMENT OPTION EACH UNIT REPRESENTING COMMON SHARES AND CLASS A WARRANTS VIA DH BLAIR INVESTMENT BANKING CORP 9312310044 931231 BUSINESS BRIEF OXFORD HEALTH PLANS INC NEW YORK STATE REGULATORS CLEAR 69 PREMIUM INCREASE OXFORD HEALTH PLANS INC SAID NEW YORK STATE REGULATORS APPROVED AN AVERAGE 69 INCREASE IN ITS INSURANCE PREMIUMS THE NORWALK CONN MANAGED HEALTHCARE COMPANY SAID THE INCREASE APPLIES TO ALL OF ITS HEALTH PLANS IN NEW YORK INCLUDING ITS HEALTHMAINTENANCE ORGANIZATION PROGRAM THE COMPANY ADDED THAT IT WILL RECEIVE ABOUT 100000 LESS IN PREMIUMS FOR ITS INDIVIDUAL INSURANCE PROGRAM THAN IT HAD SOUGHT IN ITS ORIGINAL FILING OXFORD HAS ABOUT 2100 MEMBERS CURRENTLY ENROLLED IN INDIVIDUAL PLANS IN NEW YORK IT HAS A TOTAL MEMBERSHIP OF MORE THAN 200000 THE COMPANY SAID IT IS COMFORTABLE WITH THE APPROVED RATE FOR THE INDIVIDUAL OR SELFPAY PRODUCT OXFORD ADDED THAT THE APPROVED RATES WILL HAVE NO MATERIAL IMPACT ON ITS OVERALL 1994 PERFORMANCE 9312310043 931231 BUSINESS BRIEF FULTON FINANCIAL CORP PENNSYLVANIA BANK PURCHASE IS PLANNED FOR 45 MILLION FULTON FINANCIAL CORP LANCASTER PA SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE CENTRAL PENNSYLVANIA FINANCIAL CORP SHAMOKIN PA FOR ABOUT 45 MILLION UNDER THE AGREEMENT FULTON FINANCIAL WILL PAY 23 FOR EACH OF CENTRAL PENNSYLVANIA'S 19 MILLION SHARES OUTSTANDING THE TRANSACTION IS EXPECTED TO CLOSE IN MID1994 CENTRAL PENNSYLVANIA PREVIOUSLY ANNOUNCED IT WOULD SELL EIGHT OF ITS 23 BRANCHES TO ANOTHER COMPANY THE BANKING CONCERN ALSO IS MARKETING FIVE OTHER BRANCHES NOT INCLUDED IN THE FULTON FINANCIAL ACQUISITION FULTON ALSO A BANKING COMPANY EXPECTS TO ACQUIRE ABOUT 300 MILLION IN ASSETS AND THE 10 REMAINING BRANCHES OF CENTRAL PENNSYLVANIA FULTON FINANCIAL HAD ABOUT 24 BILLION IN ASSETS AS OF SEPT 30 9312310042 931231 BUSINESS BRIEF BEI HOLDINGS LTD MERGER PLAN IS COMPLETED WITH AMRESCO HOLDINGS INC BEI HOLDINGS LTD WHICH RECENTLY MOVED ITS HEADQUARTERS FROM ATLANTA TO DALLAS SAID IT COMPLETED ITS MERGER WITH AMRESCO HOLDINGS INC CREATING A DALLASBASED INVESTMENT FIRM THAT MANAGES ABOUT 8 BILLION IN ASSETS SHAREHOLDERS IN AMRESCO WHICH IS CONTROLLED BY CLOSELY HELD CGW SOUTHEAST PARTNERS RECEIVED 112 MILLION SHARES OF BEI COMMON STOCK OR ABOUT 50 OF THE OUTSTANDING STOCK IN BEI THE SURVIVING COMPANY THE BOARD OF BEI WAS REDUCED FROM 12 TO EIGHT THE COMPANY SAID WITH EQUAL REPRESENTATION GIVEN TO BEI AND AMRESCO DIRECTORS RICHARD L CRAVEY 49 FORMERLY CHAIRMAN OF AMRESCO BECOMES CHAIRMAN AND CHIEF EXECUTIVE OF THE SURVIVING FIRM ROBERT L ADAIR 50 FORMERLY CHAIRMAN OF BEI REAL ESTATE SERVICES IS PRESIDENT AND CHIEF OPERATING OFFICER 9312310041 931231 LETTERS TO THE EDITOR THE METRIC SYSTEM PERVASIVE IN AMERICA IN REGARD TO YOUR NOV 23 TRACKING TRAVEL ITEM METRIC SYSTEM SEEMS TO BE MOVING AHEAD THE STANDARD OF MEASUREMENT BY ACT OF CONGRESS IN 1866 1975 AND 1988 IS THE MODERNIZED METRIC SYSTEM THE SYSTEME INTERNATIONAL D'UNITES SI THE OMNIBUS TRADE AND COMPETITIVE ACT OF 1988 DESIGNATES THE METRIC SYSTEM AS THE PREFERRED SYSTEM OF WEIGHTS AND MEASURES FOR US TRADE AND COMMERCE AS OF OCTOBER 1992 TO THE FULLEST EXTENT FEASIBLE THE METRIC SYSTEM IS TO BE USED IN FEDERAL PROCUREMENTS GRANTS AND OTHER BUSINESSRELATED ACTIVITIES OUR MONEY AUTOMOBILES FIREARMS PAPER CIGARETTES FILM AND MANY OTHER ASPECTS OF DAILY LIFE ARE METRIC THE NORTH AMERICAN FREE TRADE AGREEMENT AND THE URUGUAY ROUND THAT FORMED THE WESTERN HEMISPHERE TRADE BLOCK MEANS THAT WE WILL INCREASINGLY USE SI UNITS A MAJOR PURPOSE OF THE OMNIBUS TRADE AND COMPETITIVE ACT OF 1988 IS TO MAKE US PRODUCTS MORE COMPETITIVE IN INTERNATIONAL MARKETS THE US ALREADY IS METRIC OUR INTEGRATED RISK MANAGEMENT PROGRAMS DOMESTIC AND INTERNATIONAL USE METRIC UNITS ANYONE WHO HAS A MEASUREMENT SYSTEM PROBLEM NEEDS TO REMEMBER THAT A GRAM OF PREVENTION IS WORTH 3 KILOGRAMS OF CURE RAIL AND HAIL INSURANCE SERVICE INC 9312310040 931231 BUSINESS BRIEF SUPERMAC TECHNOLOGY INC FIRM TO TAKE SPECIAL CHARGE AGAINST 4THPERIOD EARNINGS SUPERMAC TECHNOLOGY INC SAID IT WOULD TAKE A ONETIME CHARGE OF NO MORE THAN 3 MILLION AGAINST FOURTHQUARTER EARNINGS TO CONSOLIDATE OPERATIONS IN THE FACE OF SLACKENED DEMAND THE SUNNYVALE CALIF MAKER OF GRAPHICS SYSTEMS FOR PERSONAL COMPUTERS SAID THE CHARGE WOULD INCLUDE EXPENSES RELATED TO CLOSING ITS OREGON DEVELOPMENT FACILITY AND REDUCING ITS WORK FORCE BY ABOUT 75 POSITIONS OR 15 THE COMPANY SAID IT EXPECTS TO BE PROFITABLE IN THE FOURTHQUARTER BEFORE THE CHARGE HOWEVER THE COMPANY WOULDN'T SAY WHETHER IT EXPECTS TO POST A QUARTERLY LOSS DUE TO THE CHARGE IN THE 1992 FOURTHQUARTER SUPERMAC EARNED 18 MILLION OR 23 CENTS A SHARE PAT BECKER A COMPANY SPOKESWOMAN SAID DEMAND FOR GRAPHICS SYSTEMS HAS SOFTENED PRIMARILY DUE TO A DEARTH OF HIGHEND MACINTOSH COMPUTERS AS APPLE COMPUTER INC GOES THROUGH A TRANSITION TO A NEW LINE OF MACINTOSHES ON THE NASDAQ STOCK MARKET SUPERMAC'S SHARES CLOSED AT 1025 DOWN 175 OR 15 9312310039 931231 BUSINESS BRIEF SOUTHERN UNION CO REGULATORS ALLOW PURCHASE OF NATURALGAS PROPERTIES SOUTHERN UNION CO AND WESTERN RESOURCES INC SAID THEY RECEIVED THE LAST MAJOR APPROVAL REQUIRED FOR SOUTHERN UNION TO ACQUIRE PROPERTIES FROM WESTERN RESOURCES THAT APPROVAL FROM THE MISSOURI PUBLIC SERVICE COMMISSION MEANS SOUTHERN UNION CAN PROCEED WITH ITS ACQUISITION OF WESTERN RESOURCES'S NATURALGAS PROPERTIES AND OPERATIONS IN WESTERN MISSOURI THE ACQUISITION EXPECTED TO CLOSE JAN 31 WILL COST SOUTHERN UNION ABOUT 360 MILLION AND WILL ESSENTIALLY DOUBLE THE NATURALGAS DISTRIBUTION COMPANY'S SIZE SOUTHERN UNION BASED IN AUSTIN TEXAS PROVIDES NATURAL GAS SERVICE TO 475000 CUSTOMERS IN TEXAS AND OKLAHOMA THE ACQUISITION WILL ADD 462000 NATURALGAS CUSTOMERS IN KANSAS CITY JOPLIN AND ST JOSEPH MO WESTERN RESOURCES WITH HEADQUARTERS IN TOPEKA KAN PROVIDES NATURALGAS SERVICE IN KANSAS WESTERN MISSOURI AND NORTHERN OKLAHOMA AND ELECTRIC SERVICE IN EASTERN AND CENTRAL KANSAS 9312310038 931231 BUSINESS BRIEF ROSS SYSTEMS INC FIRM SEES EARNINGS FALLING BELOW ANALYSTS' FORECASTS ROSS SYSTEMS INC A MAKER OF CLIENT SERVER PRODUCTS SAID IT EXPECTS EARNINGS TO BE WELL BELOW ANALYSTS' PROJECTIONS FOR ITS SECOND QUARTER ENDED TODAY BECAUSE OF DELAYS IN OBTAINING EXPECTED LICENSING CONTRACTS THE REDWOOD CITY CALIF COMPANY DECLINED TO PROJECT EARNINGS BUT ANALYSTS ESTIMATE EARNINGS OF 15 CENTS TO 19 CENTS A SHARE FOR THE QUARTER THE COMPANY SAID IT EXPECTS TO RELEASE ITS RESULTS JAN FOR THE YEAREARLIER QUARTER ROSS SYSTEMS HAD EARNINGS OF 15 MILLION OR 15 CENTS A SHARE THE COMPANY'S STOCK PLUNGED 1625 OR 21 TO 6125 ON THE NASDAQ STOCK MARKET THE COMPANY SAID IT HAS TAKEN STEPS TO CUT COSTS INCLUDING REDUCTIONS IN STAFF AND LABOR COSTS THE COMPANY ADDED THAT IT EXPECTS TO FURTHER REDUCE COSTS IN THE SECOND HALF OF THE FISCAL YEAR 9312310037 931231 BUSINESS BRIEF DIEBOLD INC FOURTHPERIOD PERSHARE NET EXPECTED AT 72TO76 CENTS DIEBOLD INC CHAIRMAN ROBERT W MAHONEY CITING STRONG DOMESTIC SALES SAID HE EXPECTS THE COMPANY WILL EARN 72 CENTS TO 76 CENTS A SHARE IN THE FOURTH QUARTER IN THE YEAREARLIER PERIOD DIEBOLD BASED IN CANTON OHIO EARNED 151 MILLION OR 75 CENTS A SHARE MR MAHONEY ALSO SAID IN AN INTERVIEW THAT HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT THE COMPANY WILL EARN 235 A SHARE TO 240 A SHARE FOR THE YEAR IN 1992 DIEBOLD EARNED 232 MILLION OR 116 A SHARE INCLUDING AN ACCOUNTING CHARGE OF 179 MILLION OR 89 CENTS A SHARE WE'RE HAVING A VERY GOOD YEAR HE SAID IN AN INTERVIEW IT'S BEEN STRONG ACROSS THE BOARD I THINK WE'LL GO INTO 1994 WITH A VERY STRONG BACKLOG DIEBOLD'S MAIN BUSINESSES AUTOMATED TELLER MACHINES AND SECURITY RACKED UP VOLUME INCREASES IN THE US IN LARGE PART BECAUSE FINANCIAL INSTITUTIONS ARE STRONGER 9312310035 931231 BUSINESS BRIEF SUPRA MEDICAL CORP NEW UNIT TO BE FORMED FOR ULTRASOUND RESEARCH SUPRA MEDICAL CORP CHADDS FORD PA SAID IT IS CREATING A NEW UNIT DEVOTED TO RESEARCH INTO HIGHRESOLUTION ULTRASOUND TECHNOLOGY TO EXAMINE THE BREAST SUPRA WHOSE DIAGNOSTIC AND MONITORING EQUIPMENT IS USED MAINLY FOR SKIN DISORDERS SAID ITS PRESIDENT EVELYN DYSONCANTWELL 66 YEARS OLD WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OF THE SUBSIDIARY SUPRA SCIENCE INC IN ADDITION MRS DYSONCANTWELL WAS NAMED TO THE NEWLY CREATED POSITION OF VICE CHAIRMAN OF THE PARENT COMPANY SUPRA IS CURRENTLY DEVELOPING THE ULTRASOUND EQUIPMENT WITH THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION UNDER AN INDUSTRY FELLOWSHIP SUPRA ALSO NAMED RICHARD J REINHART TO SUCCEED MRS DYSONCANTWELL AS PRESIDENT DR REINHART 52 HAD BEEN MANAGING DIRECTOR AND CHIEF OPERATING OFFICER OF MEDICAL RESOURCES INC A CHAIN OF DIAGNOSTIC CENTERS 9312310033 931231 BIG BOARD TAKES DISCIPLINARY ACTION AGAINST FIVE FIRMS AND 10 INDIVIDUALS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT TOOK DISCIPLINARY ACTION AGAINST FIVE FIRMS AND 10 INDIVIDUALS FOR VIOLATIONS OF EXCHANGE RULES AND FEDERAL SECURITIES LAWS UNLESS OTHERWISE NOTED FIRMS AND INDIVIDUALS COULDN'T BE REACHED FOR A COMMENT MEMBER FIRM SHEARSON LEHMAN BROTHERS INC NEW YORK WAS CENSURED AND FINED 35000 THE FIRM CONSENTED WITHOUT ADMITTING OR DENYING GUILT TO THE FINDINGS THAT IT EFFECTED TRANSACTIONS AS A PRINCIPAL IN THE DOMESTIC OVERTHECOUNTER MARKET IN BASKETS OF STOCKS WHICH INCLUDED EXCHANGELISTED STOCKS NOT ELIGIBLE FOR SUCH TRADING IN ADDITION THE EXCHANGE CHARGED THAT THE FIRM FILED INCOMPLETE DAILY PROGRAM REPORTS AND FAILED TO PRESERVE RECORDS OF OTHERS THE INFRACTIONS OCCURRED AT LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS CO SHEARSON IS NOW PART OF SMITH BARNEY SHEARSON A UNIT OF PRIMERICA CORP NEW YORK LEHMAN BROTHERS WORKED TO RESOLVE THE MATTER QUICKLY A SPOKESMAN FOR LEHMAN BROTHERS SAID THE DECISION DEALS WITH TECHNOLOGICAL TRADING PROBLEMS THAT OCCURRED THREE YEARS AGO AS SOON AS THE FIRM BECAME AWARE OF THE PROBLEMS IT IMPLEMENTED THE ENHANCED PROCEDURES NECESSARY TO PREVENT THEIR RECURRENCE MEMBER FIRM JOSEPHTHAL LYON & ROSS INC NEW YORK WAS CENSURED AND FINED 50000 THE FIRM CONSENTED WITHOUT ADMITTING OR DENYING GUILT TO THE FINDINGS THAT IT VIOLATED CERTAIN OPERATIONAL AND RECORDKEEPING REQUIREMENTS IN ADDITION THE EXCHANGE CHARGED THAT THE FIRM FAILED TO REASONABLY SUPERVISE AND CONTROL CERTAIN OF ITS BUSINESS ACTIVITIES AND TO PROVIDE FOR APPROPRIATE PROCEDURES OF SUPERVISION AND CONTROL AVERELL WAYNE SATLOFF NEW YORK FORMER BRANCH OFFICE MANAGER OF THE FIRM'S NEW YORK OFFICE WAS CENSURED AND GIVEN A TWOWEEK SUPERVISORY SUSPENSION AND REQUIRED TO RETAKE THE EXCHANGE'S SALES SUPERVISORS QUALIFYING EXAMINATION MR SATLOFF WITHOUT ADMITTING OR DENYING GUILT CONSENTED TO THE FINDINGS THAT HE FAILED TO REASONABLY DISCHARGE HIS DUTIES AND OBLIGATIONS MEMBER FIRM NEW JAPAN SECURITIES INTERNATIONAL INC NEW YORK WAS CENSURED AND FINED 35000 THE FIRM CONSENTED WITHOUT ADMITTING OR DENYING GUILT TO FINDINGS THAT IT FAILED TO ACCURATELY COMPUTE ITS NET CAPITAL AND KEEP CURRENT BOOKS AND RECORDS A SPOKESMAN FOR NEW JAPAN SECURITIES SAID THE ISSUE DATES BACK TO 1989 AND CENTERS AROUND THE DEATH OF A MANAGER IN THE GOVERNMENT CLEARANCE AREA WE ARE DISAPPOINTED THAT THE EXCHANGE DECIDED TO PURSUE THIS CASE CONSIDERING THE EXTENUATING CIRCUMSTANCES THE SPOKESMAN SAID THE FOLLOWING REGISTERED REPRESENTATIVES CONSENTED WITHOUT ADMITTING OR DENYING GUILT TO THE FOLLOWING PENALTIES EVAN JASON BINES BEECHHURST NY CENSURE AND SEVENYEAR BAR FOR SALES PRACTICE MISCONDUCT THOMAS M DEAN LOCUST VALLEY NY CENSURE AND PERMANENT BAR FOR MISAPPROPRIATING CUSTOMER FUNDS AND EFFECTING TRANSACTIONS WITHOUT CUSTOMER AUTHORIZATION VICTORIA D TIRGRATH FORT MYERS FLA CENSURE AND 18MONTH BAR FOR SALES PRACTICE MISCONDUCT MICHAEL P ROONEY JR NEWTOWN SQUARE PA CENSURE AND SIXMONTH BAR FOR SALES PRACTICE MISCONDUCT MR ROONEY HAD NO COMMENT JEFFREY B GORALSKI ELMHURST ILL CENSURE AND PERMANENT BAR FOR FAILING TO COMPLY WITH REQUESTS FOR INFORMATION STEMMING FROM FOUR UNAUTHORIZED TRANSACTIONS IN THE ACCOUNT OF A CUSTOMER JONATHAN G LAMBERTO NEW YORK CENSURE AND ONEMONTH BAR FOR FAILING TO PAY MONETARY ARBITRATION OF 27780 OWED TO A MEMBER FIRM WITHIN 30 DAYS OF RECEIPT OF THE AWARD MR LAMBERTO SATISFIED THE AWARD IN NOVEMBER 1993 FORMER TRADING DESK SUPERVISOR VINCENT PAUL MURRAY NEW YORK WAS CENSURED AFTER A CONTESTED HEARING FOUND HE MADE MISSTATEMENTS OR OMISSIONS OF FACT ON APPLICATIONS FILED WITH THE EXCHANGE AND FAILED TO AMEND ON A TIMELY BASIS HIS APPLICATIONS FOR APPROVAL BY THE EXCHANGE FORMER OPTION TRADING RIGHTHOLDER EXPANSION CAPITAL SECURITIES SAN FRANCISCO FORMERLY KNOWN AS UTOPIAN OPTIONS WAS CENSURED AND FINED 7500 THE FIRM CONSENTED WITHOUT ADMITTING OR DENYING GUILT THAT IT VIOLATED CERTAIN SECURITIES AND EXCHANGE COMMISSION AND BIG BOARD FINANCIAL OPERATIONAL REPORTING AND RECORDKEEPING REQUIREMENTS THE AMOUNT OF MONEY THAT WE PAID TO THE NEW YORK STOCK EXCHANGE WAS THE CLEANEST WAY TO SOLVE A PROBLEM THAT OCCURRED SEVERAL YEARS AGO SAID MICHAEL MEYER MANAGING PARTNER OF EXPANSION CAPITAL RATHER THAN MOVE INTO A LEGAL SITUATION WE WOULD RATHER SOLVE OUR SMALL PROBLEMS AND MOVE FORWARD POSITIVELY I FEEL WE'VE ACCOMPLISHED THAT THROUGH OUR SETTLEMENT FORMER WIRE TRANSFER CLERK JOHN MICHAEL LASAKO CORAL SPRINGS FLA WAS CENSURED AND PERMANENTLY BARRED MR LASAKO CONSENTED WITHOUT ADMITTING OR DENYING GUILT TO FINDINGS THAT HE MISAPPROPRIATED 9875 FROM CUSTOMER ACCOUNTS AND ATTEMPTED TO TRANSFER MOST OF THE FUNDS TO HIS PERSONAL BANK ACCOUNT MR LASAKO'S FORMER FIRM DISCOVERED THE ACTION BEFORE THE FUNDS WERE WIRED TO HIS ACCOUNT FORMER CLERK STEPHANIE WYCHE QUEENS VILLAGE NY WAS CENSURED AND PERMANENTLY BARRED MS WYCHE CONSENTED WITHOUT ADMITTING OR DENYING GUILT TO THE FINDINGS THAT SHE MISAPPROPRIATED 4500 IN MONEY ORDERS MAILED TO MS WYCHE'S FORMER FIRM 9312310032 931231 LETTERS TO THE EDITOR MITEY SENSITIVE PEOPLE BREATHE EASIER IN US YOUR OTHERWISE EXCELLENT ARTICLE OF MITES AND MEN A TALE OF TORMENT MARKETPLACE NOV 30 QUOTES A BRITISH PROFESSOR WHO CRITICIZES ALLERGISTS WHO MIGHT RECOMMEND DESENSITIZATION SHOTS FOR MITESENSITIVE ASTHMATICS INSTEAD OF THE PREFERRED AVOIDANCE MEASURES THIS IS A PARTICULARLY ODD STATEMENT TO COME FROM AN ACADEMIC IN A COUNTRY WHERE ALLERGY INJECTIONS ARE NOT EVEN CURRENTLY AVAILABLE TO ALLERGY SUFFERERS AND WHERE ONLY A FEW HEROIC INDIVIDUALS PRACTICE ALLERGY TREATMENT SINCE THE DISCIPLINE HAS NEVER ACHIEVED SPECIALTY STATUS WITHIN THE CONFINES OF THE NATIONAL HEALTH SERVICE THE FACT IS THAT AMERICAN ALLERGISTS HAVE BEEN PIONEERS IN ENVIRONMENTAL CONTROL MEASURES RECOMMENDING MATTRESS ENCASINGS AND CARPET REMOVAL FOR MORE THAN 20 YEARS EVEN BEFORE IT WAS KNOWN THAT MITES CAUSED WHAT WAS THEN CALLED HOUSE DUST ALLERGY INDEED UNTIL JUST A FEW YEARS AGO THERE WERE NO COMMERCIAL SOURCES FOR MITECONTROL SUPPLIES IN ENGLAND WHEREAS A NUMBER OF COMPANIES HAVE PROVIDED SUCH ITEMS IN THE US FOR MORE THAN 20 YEARS THE BEST OF THE BRITISH MITE RESEARCHERS FLED TO THIS COUNTRY YEARS AGO WHERE THEIR RESEARCH RECEIVES BETTER FUNDING AND IS QUICKLY TRANSLATED INTO BETTER PATIENT CARE BY SKILLED ALLERGISTS THROUGHOUT THE US BY CONTRAST IN BRITAIN ASTHMATICS ARE ROUTINELY LOADED UP WITH DRUGS WHETHER OR NOT THEY ARE ALLERGIC TO DUST MITES SO ENVIRONMENTAL AVOIDANCE IS NOT EVEN AN OPTION 9312310031 931231 LETTERS TO THE EDITOR WEST BANK GAZA STRIP ARE NOT PALESTINE' WE TAKE EXCEPTION TO PAUL A GIGOT'S REPEATED USE OF THE NAME PALESTINE WHEN REFERRING TO THE WEST BANK AND GAZA STRIP FROM GAZA PEACE LOOKS A LOT LIKE WAR POTOMAC WATCH DEC 17 ISRAELIS AND PALESTINIANS ARE CURRENTLY NEGOTIATING THE TERMS OF THE TRANSFER OF AUTHORITY FROM THE ISRAELI MILITARY GOVERNMENT AND CIVIL ADMINISTRATION TO PALESTINIANS IN JERICHO AND THE GAZA STRIP AS SET OUT IN THE PALESTINIANISRAELI DECLARATION OF PRINCIPLES FOLLOWING THE ELECTIONS OF A PALESTINIAN COUNCIL THESE POWERS WILL BE EXPANDED ACROSS THE REST OF THE WEST BANK DURING THIS INTERIM PERIOD THE TRANSFER OF POWERS CONSTITUTES THE CREATION OF FULL PALESTINIAN AUTONOMY IN THESE REGIONS IT DOES NOT CONSTITUTE THE CREATION OF AN INDEPENDENT STATE FINAL STATUS NEGOTIATIONS WHICH WILL DETERMINE THE NATURE OF THE FINAL ARRANGEMENT FOR THE WEST BANK AND GAZA STRIP ARE NOT SCHEDULED TO BEGIN FOR AT LEAST ANOTHER TWO YEARS ISRAELIS AND PALESTINIANS WILL DETERMINE THE FUTURE OF THE WEST BANK AND GAZA STRIP AT THE NEGOTIATING TABLE 9312310030 931231 A HOLIDAY ON SATURDAY MEANS OBSERVANCES VARY NEW YORK WITH NEW YEAR'S DAY FALLING ON A SATURDAY HOLIDAY OBSERVANCES WILL VARY THROUGHOUT THE COUNTRY EQUITY TRADERS WILL NOT GET MUCH RELIEF THE NEW YORK STOCK EXCHANGE NASDAQ MARKET AND OTHER EQUITY MARKETS WILL OPERATE ON A NORMAL SCHEDULE TODAY AND MONDAY THE CHICAGO BOARD OPTIONS EXCHANGE WILL TRADE EQUITYRELATED ISSUES ON THE NORMAL SCHEDULE TODAY OPTIONS ON INTEREST RATES WILL CLOSE AT NOON CST THE CHICAGO BOARD OF TRADE WILL TRADE FINANCIAL AND INSURANCE CONTRACTS UNTIL NOON CST TODAY ALL AGRICULTURE AND METAL CONTRACTS WILL BE CLOSED TODAY THE CHICAGO MERCANTILE EXCHANGE WILL TRADE EQUITYRELATED ISSUES ON A NORMAL SCHEDULE BUT PORK BELLIES RANDOM LUMBER AND OTHER NONEQUITY ISSUES WILL CLOSE TRADING AT NOON CST NEW YORK COMMODITIES MARKETS WILL BE CLOSED MOST FEDERAL STATE AND LOCAL GOVERNMENT OFFICES WILL BE CLOSED OR RUNNING ON CURTAILED SCHEDULES TODAY THE US POSTAL SERVICE WILL OFFER REGULAR SERVICE TODAY BUT TOMORROW ONLY EXPRESS MAIL WILL BE DELIVERED IN CANADA EXCHANGES BANKS GOVERNMENT OFFICES AND MOST BUSINESSES WILL BE CLOSED MONDAY IN QUEBEC BANKS WILL ALSO BE CLOSED TUESDAY AND THERE WILL BE NO REGULAR POSTAL SERVICE IN CANADA ON MONDAY 9312310029 931231 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 2 15/16 HIGH 2 1/2 LOW 2 1/2 NEAR CLOSING BID 2 3/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 320 30 TO 119 DAYS 324 120 TO 189 DAYS 328 190 TO 239 DAYS 340 240 TO 270 COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 336 30 DAYS 332 60 DAYS 332 90 DAYS CERTIFICATES OF DEPOSIT 257 ONE MONTH 261 TWO MONTHS 267 THREE MONTHS 278 SIX MONTHS 303 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 325 ONE MONTH 330 THREE MONTHS 340 SIX MONTHS BANKERS ACCEPTANCES 318 30 DAYS 318 60 DAYS 321 90 DAYS 324 120 DAYS 328 150 DAYS 331 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 1/2 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 600 JAPAN 3 SWITZERLAND 750 BRITAIN 550 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY DECEMBER 27 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 306 13 WEEKS 321 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 709 60 DAYS 718 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 708 60 DAYS 718 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 273 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9312310028 931231 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN FOREIGN NATIONALS AND COMPANIES OPERATING IN CHINA SCRAMBLED TO DUMP FOREIGNEXCHANGE CERTIFICATES AND BEAT A DEVALUATION UNDER MONETARY REFORM WHILE CHINESE USE THE YUAN CURRENCY FOREIGNERS ARE EXPECTED TO USE THE CERTIFICATES OR SCRIP WHICH FUNCTIONS AS A SECOND CURRENCY AND IS ISSUED IN EXCHANGE FOR DOLLARS AND OTHER HARD CURRENCIES SCRIP HAS BEEN HOVERING AROUND 58 TO THE DOLLAR BUT MUCH OF CHINA'S FOREIGN TRADE IS CONDUCTED AT ABOUT 87 YUAN TO THE DOLLAR UNDER CURRENCYSWAP MARKET RATES RUSSIAN CONSUMER PRICES SOARED NINEFOLD IN 1993 BUT THAT STILL REPRESENTED A SLOWDOWN FROM A 26FOLD JUMP IN 1992 FINANCE MINISTER BORIS FYODOROV SAID THE GOVERNMENT FINALLY IS REDUCING INFLATION HE SAID THOUGH IT STILL IS CATASTROPHICALLY HIGH IT WOULD BE RIDICULOUS TO CLAIM THAT WE HAVE CARRIED OUT TOO TOUGH A POLICY OR A SHOCKTHERAPY REFORM HE SAID DECLARING ECONOMIC PERFORMANCE COULD HAVE BEEN BETTER IF THE FORMER PARLIAMENT HADN'T ORDERED MORE STATE SUBSIDIES HE SAID THAT DECEMBER'S 12 MONTHLY INFLATION RATE WAS THE LOWEST SINCE MARKET REFORMS BEGAN TWO YEARS AGO AND THAT INFLATIONADJUSTED INCOMES ROSE 10 THIS YEAR IN ANOTHER RIPPLE FROM GERMANY'S 1990 REUNIFICATION RADIO IN THE AMERICAN SECTOR A USBACKED STATION SET UP IN BERLIN IN 1946 WILL MERGE TOMORROW INTO A NEW NATIONAL NETWORK DEUTSCHLAND RADIO RIAS WAS RUN BY THE US INFORMATION AGENCY AS A COLD WAR TOOL WHEN BERLIN WAS DIVIDED INTO US BRITISH FRENCH AND RUSSIAN SECTORS ITS BROADCASTS WERE AIMED AT COMMUNIST EAST GERMANY PEOPLE CAUGHT LISTENING WERE JAILED AND TRIED TO BOOST MORALE IN ISOLATED WEST BERLIN GERMANY RUNS RIAS PROGRAMMING AND NOW PAYS FOR 90 OF OPERATING COSTS AND THE US PROVIDES 10 AND A CHAIRMAN A BELGIAN STATEOWNED FERRY SERVICE TO BRITAIN THAT HAS OPERATED SINCE 1633 WILL BE DISCONTINUED TODAY THE RMT LINE'S FOURHOUR TRIP BETWEEN OSTEND BELGIUM AND DOVER ENGLAND FELL VICTIM TO FASTER ENGLISH CHANNEL CONNECTIONS BETWEEN FRANCE AND BRITAIN COMPETITION THAT WILL INTENSIFY WITH NEXT YEAR'S EUROTUNNEL OPENING RMT HAS PILED UP A 100 MILLION DEFICIT SINCE 1971 ITS OSTENDDOVER PASSENGER TRAFFIC THIS YEAR FELL 13 TO 18 MILLION FROM A YEAR EARLIER TOMORROW RMT WILL START AN OSTENDRAMSGATE SERVICE IN A JOINT VENTURE WITH BRITAIN'S SALLY LINE ECUADOR WILL TAKE AUSTERITY ACTIONS BECAUSE OF LAWMAKERS' REFUSAL TO RAISE TAXES TO COVER A 500 MILLION DEFICIT THE GOVERNMENT SOUGHT TO RAISE THE VALUEADDED TAX RATE TO 18 FROM 10 BUT CONGRESS MADE TAXDELINQUENT BUSINESSES SUBJECT TO CLOSURE BLAMING LACK OF FUNDS THE GOVERNMENT SAID IT MUST FIRE STATE WORKERS FREEZE SALARIES AND PARALYZE PUBLIC WORKS BECAUSE OF A SUPPLY GLUT WORLD PRICES OF OIL ECUADOR'S MAIN EXPORT HAVE PLUNGED 40 FROM THE LEVEL THE GOVERNMENT HAD COUNTED ON TO FINANCE HALF ITS BUDGET ZAIRE'S CURRENCY INTRODUCED IN OCTOBER TO EASE THE CENTRAL AFRICAN STATE'S LIQUIDITY CRISIS HAS TUMBLED IN VALUE IN KINSHASA THE CAPITAL THE BLACKMARKET RATE IS 10667 NEW ZAIRES TO THE US DOLLAR WHILE THE OFFICIAL RATE PLUNGED TO 35 NEW ZAIRES TO THE DOLLAR FROM 25 A WEEK AGO MONETARY REFORM HAS SLAMMED CONSUMERS THE PRICE OF A CHICKEN MORE THAN TRIPLED TO 350 NEW ZAIRES FROM 100 THE NEW CURRENCY IS SHUNNED IN MINING PROVINCES WHERE SHOPS' REFUSAL TO ACCEPT SOLDIERS' MONEY LAST MONTH CAUSED RIOTS OF 800 TAIWAN OFFICIALS WHO HAVE FILED ASSET DECLARATIONS UNDER A NEW LAW NEWSPAPER ANALYSES INDICATE AT LEAST HALF THE AIDES' WEALTH TOPS 1 MILLION EACH THE SUNSHINE ACT PASSED LAST JUNE WAS PART OF A SWEEPING ANTICORRUPTION CAMPAIGN IN RESPONSE TO A BACKLASH AGAINST MORE THAN FOUR DECADES OF MONEYBASED POLITICAL POWER IN TAIWAN'S EVOLUTION FROM AUTOCRATIC RULE TO A MULTIPARTY DEMOCRACY THE LAW APPLIES TO ABOUT 23000 LEGISLATORS SENIOR OFFICIALS AND LEADERS OF STATE ENTERPRISES AND THEIR SPOUSES AND CHILDREN THEY ARE REQUIRED TO DISCLOSE ASSETS THEY HOLD RANGING FROM REAL ESTATE AND BANK ACCOUNTS TO JEWELRY THE DECLARATIONS ARE PUBLISHED IN A GOVERNMENT GAZETTE AND AUDITED BY AN OFFICIAL WATCHDOG PANEL AMONG THE DISCLOSURES THE INTERIOR MINISTER LISTED A 7500 CARP AND A LEGISLATOR VALUED HIS 11 GOLFCLUB MEMBERSHIPS AT A TOTAL OF 600000 MOST OFFICIALS SAID THEY INHERITED THEIR WEALTH BUT NEWS REPORTS CITED WIDESPREAD SKEPTICISM THAT SO MANY COULD BE SO RICH THE JAMAICAN GOVERNMENT WILL SELL FOUR OF ITS SIX SUGAR FACTORIES UNDER ITS PLAN TO PRIVATIZE AND MODERNIZE THE WEST INDIES NATION'S SUGAR INDUSTRY DUN & BRADSTREET INTERNATIONAL SAID THE NUMBER OF BUSINESS FAILURES IN ENGLAND AND WALES THIS YEAR FELL 11 TO 55733 FROM A YEAR EARLIER THE FIRST DECLINE IN SIX YEARS BUT STILL A HIGH RATE EXCEEDING 1000 A WEEK FAILURES IN SCOTLAND DROPPED 29 9312310027 931231 BUSINESS BRIEF SALANT CORP COMPANY SAYS PROJECTIONS FOR SALES NET WON'T BE MET SALANT CORP NEW YORK SAID THAT IT DOESN'T EXPECT TO MEET THE SALES AND OPERATING PROFIT PROJECTIONS FOR THE SECOND HALF OF 1993 WHICH IT HAD FILED WITH CREDITORS AS PART OF THE COMPANY'S REORGANIZATION PLAN SALANT EMERGED FROM FEDERAL BANKRUPTCY CODE PROTECTION ON SEPT 20 ACCORDING TO A DISCLOSURE STATEMENT FILED EARLIER THIS YEAR THE COMPANY PROJECTED SALES OF 2141 MILLION WITH OPERATING PROFIT OF 214 MILLION FOR THE SECOND HALF OF 1993 THE COMPANY SAID IT DIDN'T BELIEVE IT WOULD ACHIEVE THE PROJECTED GOALS PRIMARILY DUE TO HIGHERTHANEXPECTED INTEREST EXPENSE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY SALANT WAS UNCHANGED AT 750 SALANT WHICH MAKES APPAREL UNDER THE PERRY ELLIS JOHN HENRY AND OTHER BRAND NAMES SAID THE COMPANY WAS ADVERSELY AFFECTED BY NOT ONLY HIGHERTHANEXPECTED INTEREST EXPENSES BUT ALSO BY WEAKER SALES OF ITS DRESS SHIRTS 9312310026 931231 COURT BLOCKS RIVALS' MOVE TO DELAY AETNA PROGRAM HARTFORD CONN AETNA LIFE & CASUALTY CO SAID A FEDERAL COURT BLOCKED AN ATTEMPT TO DELAY THE INSURANCE COMPANY'S PLANS TO LAUNCH A MILITARY HEALTHCARE PROGRAM IN CALIFORNIA AND HAWAII THE DECISION BY THE US DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA DENIED A REQUEST FOR A TEMPORARY RESTRAINING ORDER SOUGHT BY RIVAL BIDDERS FOUNDATION HEALTH CORP AND QUALMED INC THAT WOULD HAVE DELAYED THE PROGRAM'S IMPLEMENTATION AN AETNA SPOKESMAN SAID HOWEVER A FOLLOWUP HEARING RELATING TO A SEPARATE INJUNCTION SOUGHT BY THE RIVAL BIDDERS IS SCHEDULED FOR JAN 14 AS PREVIOUSLY REPORTED THE PENTAGON HAS REOPENED BIDDING FOR THE 35 BILLION FIVEYEAR CONTRACT AFTER RIVAL BIDDERS PROTESTED THAT THE CONTRACT HAD BEEN IMPROPERLY AWARDED TO AETNA EARLIER THIS WEEK HOWEVER THE PENTAGON TOLD AETNA TO PROCEED WITH IMPLEMENTATION OF THE PROGRAM SCHEDULED TO BEGIN FEB 1 FOUNDATION HEALTH A HEALTHCARE PROVIDER IN RANCHO CORDOVA CALIF HAS HANDLED THE CONTRACT SINCE 1988 QUALMED IS A HEALTHCARE CONCERN IN PUEBLO COLO 9312310025 931231 BUSINESS BRIEF BIRMINGHAM STEEL CORP STEELMAKER SCRAPS ITS PLAN TO BUILD ARIZONA MINIMILL BIRMINGHAM STEEL CORP CITING COMPETITION AN ENVIRONMENTAL CHALLENGE AND A POOR MARKET SAID IT SCRAPPED PLANS TO BUILD A STEEL MINIMILL IN PALO VERDE ARIZ THE BIRMINGHAM ALA STEELMAKER SAID IT FILED TO WITHDRAW ITS APPLICATION WITH THE ARIZONA DEPARTMENT OF ENVIRONMENTAL QUALITY FOR A PERMIT FOR THE MILL WHICH WOULD HAVE COST 100 MILLION AND CHURNED OUT 700000 TONS A YEAR THE PROJECT WAS SUNK BY SEVERAL FACTORS FOR ONE NORTH STAR STEEL CO A UNIT OF CARGILL INC ALREADY HAS RECEIVED AN ENVIRONMENTAL PERMIT FOR A MILL IN ARIZONA AND HAS NARROWED ITS SITE SEARCH TO THE KINGMAN AREA IT WOULD PRODUCE 500000 TONS A YEAR THERE'S REALLY NOT ENOUGH MARKET FOR THE CAPACITY OF TWO MILLS AND SCRAP RESOURCE ALSO WOULD BE A FACTOR SAID PHILLIP E CASEY BIRMINGHAM'S VICE CHAIRMAN MINIMILLS USE SCRAP TO MAKE STEEL MOREOVER THE CONSTRUCTION MARKET WHICH WOULD HAVE BEEN THE MILL'S MAIN CUSTOMER IS HURTING ON THE WEST COAST AND RESIDENTS NEAR THE PROPOSED MILL'S SITE WERE CHALLENGING THE PERMIT 9312310024 931231 WHAT'S NEWS BUSINESS AND FINANCE PRUDENTIAL SECURITIES RELIEVED ITS GENERAL COUNSEL OF HIS LEGAL DUTIES AMID A WIDENING INVESTIGATION OF THE BROKERAGE FIRM LOREN SCHECHTER IS AMONG THE FEW SENIOR PRUDENTIAL EXECUTIVES STILL AROUND FROM THE 1980S WHEN THE FIRM BECAME EMBROILED IN LIMITEDPARTNERSHIP PROBLEMS MEANWHILE PROSECUTORS PLAN TO SEND OUT SUBPOENAS TO SEVERAL SENIOR EXECUTIVES INCLUDING MR SCHECHTER AS PART OF THEIR INQUIRY OF THE FIRM STOCK MUTUAL FUND SALES IN DECEMBER JUMPED AN ESTIMATED 30 FROM THE YEAR BEFORE FOLLOWING A NOVEMBER SLOWDOWN A TOTAL OF 87 BILLION FLOWED INTO STOCK FUNDS IN NOVEMBER DOWN FROM A RECORD 133 BILLION IN OCTOBER ROYAL DUTCH/SHELL GROUP AND MONTEDISON AGREED TO MERGE MOST OF THEIR BULKPLASTICS BUSINESSES CREATING A WORLD LEADER IN THE INDUSTRY SALES OF NEW SINGLEFAMILY HOMES ROSE 113 IN NOVEMBER TO THEIR HIGHEST LEVEL SINCE APRIL 1986 THE WEST LED THE SURGE WITH A 338 RISE THE SOUTH AND MIDWEST HAD MODERATE GAINS AND SALES FELL 102 IN THE NORTHEAST MANY SMALLBUSINESS OWNERS THINK THE ECONOMY IS FINALLY GAINING STEAM GROWING MARKEDLY MORE OPTIMISTIC IN THE LAST SEVERAL WEEKS THEY ARE GEARING UP TO BOOST HIRING AND INVESTMENT WITH MANY BIG FIRMS STILL PARING BACK SMALL BUSINESSES COULD PLAY A VITAL ROLE IN ECONOMIC GROWTH NEXT YEAR BOND PRICES TUMBLED ON FURTHER SIGNS OF A STRENGTHENING ECONOMY KNOCKING STOCK PRICES MOSTLY LOWER THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST 1 1/4 ITS YIELD ROSE TO 634 THE DOW INDUSTRIALS SLID 1845 TO 377588 A SALOMON BROTHERS FORMER MANAGING DIRECTOR AND HEAD BOND TRADER THOMAS MURPHY HAS AGREED TO PAY 300000 IN CIVIL PENALTIES TO SETTLE SEC CHARGES IN CONNECTION WITH THE 1991 TREASURY BOND SCANDAL AT THE FIRM GENENTECH'S DNASE DRUG WON FDA APPROVAL AS A BREAKTHROUGH TREATMENT FOR CYSTIC FIBROSIS THE DRUG THE FIRST DEVELOPED IN 30 YEARS TO TREAT THE INHERITED DISEASE HAS BEEN SHOWN TO IMPROVE PATIENTS' BREATHING ABILITY SMITHKLINE BEECHAM RECEIVED FDA CLEARANCE TO MARKET KYTRIL A DRUG TO PREVENT NAUSEA IN CANCER PATIENTS BANCO ESPANOL DE CREDITO'S DOWNFALL IS BEING LINKED TO THE APPARENTLY CAVALIER WAYS OF ITS FORMER CHAIRMAN THE TROUBLE AT THE SPANISH BANK IS EXPECTED TO PUT A SPOTLIGHT ON REGULATORY INSTITUTIONS AND ON THE ROLE OF JP MORGAN WHICH ADVISED BANESTO IN A RECENT CAPITALRAISING OPERATION MARTECH REPLACED BEN TISDALE AS CHAIRMAN WITH FORMER ALASKA GOV SHEFFIELD JUST WEEKS AFTER FILING FOR BANKRUPTCY PROTECTION AMID CLAIMS OF ACCOUNTING AND OTHER PROBLEMS SALOMON BROTHERS LOST ANOTHER IN A STRING OF ELITE BOND TRADERS THAT MADE MEGAPROFITS FOR THE FIRM IN RECENT YEARS AS SENIOR TRADER LEAHY QUIT PHIBRO ENERGY SAID ITS OILPRODUCING OPERATIONS IN RUSSIA WILL HAVE TO BE SHUT DOWN IF AN OILEXPORT TAX ISN'T REPEALED BY THE RUSSIAN GOVERNMENT THE NEW YORK STOCK EXCHANGE DISCIPLINED FIVE FIRMS AND 10 INDIVIDUALS FOR VIOLATIONS OF EXCHANGE RULES AND FEDERAL SECURITIES LAWS BONDS LEHMAN BROTHERS TREASURY INDEX 552202 OFF 4846 COMMODITIES OIL 1417 A BARREL OFF 27 CENTS DOW JONES FUTURES INDEX 14281 UP 041 SPOT INDEX 12760 UP 009 DOLLAR 11183 YEN UP 009 17353 MARKS UP 00078 9312310021 931231 BUSINESS BRIEF TEXACO EXPECTS BOOST IN NORTH SEA OIL FLOW TO 200000 BARRELS A WALL STREET JOURNAL NEWS ROUNDUP TEXACO INC EXPECTS TO BOOST ITS NORTH SEA OIL PRODUCTION TO AROUND 200000 BARRELS A DAY BY THE END OF THE DECADE LARGELY THROUGH NEW DRILLING AND DEVELOPMENT TECHNOLOGY SAID ROBERT A SOLBERG DEPUTY CHAIRMAN OF THE COMPANY'S UNITED KINGDOM SUBSIDIARY MR SOLBERG SAID TEXACO'S NORTH SEA PRODUCTION WILL HIT AROUND 100000 BARRELS A DAY EARLY IN 1994 DOUBLE THE OUTPUT FROM EARLY 1993 MR SOLBERG SAID MR SOLBERG ALSO SAID TEXACO BASED IN WHITE PLAINS NY EXPECTS TO SPEND AROUND 400 MILLION ANNUALLY IN THE NORTH SEA FOR THE NEXT THREE YEARS COMPARABLE WITH ITS SPENDING IN THE AREA THE PREVIOUS THREE YEARS SOME OF THE PLANNED FIELD DEVELOPMENTS IN THE NORTH SEA WILL BE THROUGH TRADITIONAL DRILLING AND DEVELOPMENT METHODS AND HALF OF THE FUTURE DEVELOPMENT IS THE NEW TECHNOLOGY MR SOLBERG SAID REFERRING TO THE DEVELOPMENT OF THE STRATHSPEY FIELD BROUGHT ON LINE THIS MONTH AT STRATHSPEY TEXACO DEVELOPED TECHNOLOGY THAT ALLOWS THE COMPANY TO OPERATE THE WELLS AND CONTROL FLOWS OF OIL WITH EQUIPMENT ON THE SEAFLOOR THAT IS TIED INTO AN EXISTING OIL PLATFORM THAT SAVES TEXACO MONEY NORMALLY SPENT ON BUILDING ITS OWN OIL PLATFORM OVER THE FIELD WHERE THE WELLS ARE CONTROLLED FROM THE DECK OF THE PLATFORM USING SOCALLED SUBSEA TECHNOLOGY REDUCES DEVELOPMENT COSTS BY ABOUT HALF MR SOLBERG ESTIMATED HE NOTED THAT TEXACO MUST PAY A TARIFF HOWEVER TO THE OWNERS OF THE NEARBY PLATFORM AND PIPELINES THROUGH WHICH IT MOVES ITS OIL THAT BOOSTS THE COST SOMEWHAT HE SAID BUT STILL MAKES FOR A LESS COSTLY INVESTMENT THAN A FULLFLEDGED PLATFORM 9312310020 931231 BUSINESS BRIEF PRIMERICA AND TRAVELERS SHAREHOLDERS GIVE GREEN LIGHT FOR ACQUISITION PLAN NEW YORK AS EXPECTED SHAREHOLDERS OF PRIMERICA CORP AND TRAVELERS CORP APPROVED PRIMERICA'S PLAN TO ACQUIRE TRAVELERS FOR ABOUT 42 BILLION IN STOCK FOLLOWING THE TRANSACTION EXPECTED TO BE COMPLETED TODAY THE COMBINED COMPANIES WILL BECOME TRAVELERS INC THE NEW COMPANY'S STOCK WILL BEGIN TRADING MONDAY ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL TRV PRIMERICA WHICH ALREADY OWNS 27 OF TRAVELERS WILL EXCHANGE 080423 PRIMERICA SHARES FOR EACH TRAVELERS SHARE OUTSTANDING IN ADDITION EACH TRAVELERS SHARE CARRIES WITH IT ONE COMMON SHARE PURCHASE RIGHT THE RIGHTS ARE BEING REDEEMED AT A PRICE OF FIVE CENTS EACH THE REDEMPTION OF THE RIGHTS BECAME EFFECTIVE YESTERDAY FOR HOLDERS OF RECORD AT THAT TIME FOLLOWING THE TRANSACTION TRAVELERS INC WILL HAVE MORE THAN 100 BILLION IN ASSETS ALMOST 10 BILLION IN STOCKHOLDERS' EQUITY AND ABOUT 140 BILLION IN THIRDPARTY ASSETS UNDER MANAGEMENT TRAVELERS INC BUSINESS UNITS WILL INCLUDE BROKERAGE FIRM SMITH BARNEY SHEARSON AS WELL AS THE TRAVELERS INSURANCE COS STANDARD & POOR'S CORP UPGRADED THE LONGTERM DEBT RATING OF PRIMERICA TRAVELERS AND THE COMPANY'S PRIMARY UNITS TO SINGLEAPLUS FROM SINGLEA AND REMOVED IT FROM CREDITWATCH WHERE IT HAD BEEN PLACED ON SEPT 22 ABOUT 21 BILLION OF DEBT WAS AFFECTED THE RATINGS AGENCY SAID THE UPGRADE STEMS FROM THE ENHANCED EARNINGS POTENTIAL OF THE COMBINED COMPANY S&P ALSO SAID THAT THE COMBINED COMPANY WILL HAVE SIGNIFICANT CROSSSELLING OPPORTUNITIES ECONOMIES OF SCALE AND BETTER FINANCIAL FLEXIBILITY MOODY'S INVESTORS SERVICE INC UPGRADED THE SENIOR DEBT RATINGS OF THE COMBINED COMPANY AND ITS MAJOR UNITS LAST WEEK 9312310019 931231 ENTERPRISE SMALL BUSINESS PUTS ON A HAPPY FACE BY BRENT BOWERS AND JEFFREY A TANNENBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL AT LAST AFTER ENDURING YEARS OF RECESSION AND SLOW GROWTH MANY SMALLBUSINESS OWNERS THINK THE ECONOMY IS FINALLY PICKING UP STEAM GROWING MARKEDLY MORE OPTIMISTIC JUST IN THE LAST SEVERAL WEEKS THEY ARE GEARING UP TO HIRE MORE PEOPLE AND INVEST MORE MONEY THIS WOULD ADD STRENGTH TO A RECOVERY ALREADY BENEFITING FROM BULLISH ECONOMIC NEWS WITH MANY BIG CORPORATIONS STILL CURBING COSTS AND TRIMMING JOBS SMALLBUSINESS PLANS COULD PLAY A CRUCIAL ROLE IN ECONOMIC GROWTH NEXT YEAR WE'VE HAD A DIFFICULT YEAR BUT 1994 LOOKS QUITE GOOD SAYS ROBERT MAZZOLA PRESIDENT OF ROMAN CO A RANDOLPH MASS MAKER OF EMBROIDERED HATS AND EMBLEMS ROMAN CUT ITS WORK FORCE TO 140 FROM 250 A YEAR AGO BUT PLANS TO HOLD EMPLOYMENT STEADY IN THE FIRST QUARTER AND HOPES TO START HIRING IN THE SECOND AND THIRD QUARTERS HE SAYS THE COMPANY IS REPOSITIONING ITSELF MAKING MORE PRODUCTS FOR CORPORATE PROMOTIONS BUT THE ECONOMY WILL ALSO HELP MR MAZZOLA ADDS DISCRETIONARY INCOME IS UP HE SAYS OUR PRICES ARE MEDIUM TO HIGH END AND PEOPLE ARE A LITTLE MORE WILLING TO SPEND THE MONEY OTHERS SHARE THIS OPTIMISM MICHAEL CANTWELL NATIONAL DIRECTOR FOR MANUFACTURING AT GRANT THORNTON CONSULTANTS SAYS THAT THE MOOD AT MEDIUMSIZED MANUFACTURERS THOSE WITH REVENUES BETWEEN 10 MILLION AND 300 MILLION HAS BECOME STRIKINGLY UPBEAT IN JUST THE PAST THREE MONTHS IN ALL ECONOMIC SECTORS AND ALMOST ALL GEOGRAPHIC REGIONS MR CANTWELL WHO TALKED WITH NEARLY 100 SMALLMANUFACTURINGCOMPANY CEOS DURING A JUSTCOMPLETED EIGHTWEEK SWING OF THE US SAYS THERE HAS BEEN A REAL INCREASE IN CONFIDENCE IN JUST THE PAST TWO MONTHS BOTH ORDERS AND SHIPMENTS HAVE BEEN IMPROVING STEADILY THROUGH THE FOURTH QUARTER HE ADDS AND BECAUSE COMPANIES HAVE BECOME MUCH MORE EFFICIENT ABOUT KEEPING INVENTORIES TO A MINIMUM HE SAYS THE ORDERS TRANSLATE INTO SHIPMENTS AND INTO REVENUES A LOT FASTER THAN EVER BEFORE AS A RESULT HE SAYS SMALL COMPANIES ARE CAUTIOUSLY BEGINNING TO HIRE MORE PEOPLE BUY NEW COMPUTERS AND AUTOMATED EQUIPMENT AND STEP UP SPENDING ON ADVERTISING AND MARKETING MR CANTWELL NOTES THAT THE OPTIMISM IS UNEVEN SOUTHERN CALIFORNIA IS STILL SUFFERING FROM DEFENSE CUTBACKS AND THE RECOVERY APPEARS ANEMIC IN PARTS OF NEW ENGLAND HE SAYS AND MANY COMPANIES FEAR THAT INCREASED TAXES AND THE POTENTIAL COST OF PRESIDENT CLINTON'S HEALTHCARE OVERHAUL MIGHT SAP THEIR PROFITABILITY NO ONE HAS YET CONDUCTED A SCIENTIFIC POLL OF SMALLBUSINESS REACTION TO THE LATEST SIGNS OF AN ECONOMIC UPSWING NOTABLY REPORTS THIS WEEK THAT THE INDEX OF LEADING INDICATORS CONTINUES ITS STRONG RISE AND SALES OF BOTH NEW AND EXISTING HOMES ARE SURGING BUT TALKS WITH SMALLCOMPANY CEOS YESTERDAY UNCOVERED A CLEAR GROWTH IN CONFIDENCE AT SHERRYLEHMANN INC OPERATOR OF A BIG NEW YORK CITY WINE STORE THAT REPORTS A 9 SURGE IN DECEMBER SALES FROM A YEAR EARLIER OFFICIALS TURN RAPTUROUS ABOUT CONSUMERS' NEW WILLINGNESS TO SPEND OUR SALES OF EXPENSIVE WINES HAVE BEEN VERY VERY STRONG SAYS MICHAEL AARON SHERRYLEHMANN'S CHAIRMAN IT WAS AN AMAZING CHRISTMAS WHAT'S DIMINISHING IS INEXPENSIVE WINE THE REASON CONSUMERS ARE IN A MUCH BETTER FRAME OF MIND THAN THEY WERE HE SAYS SO IS MR AARON NOW I'M GOING TO BE BUYING A LOT OF WINE HE SAYS TOM OWENS PRESIDENT OF BODY SUPPORT SYSTEMS INC AN ASHLAND ORE MAKER OF ORTHOPEDIC POSITIONING CUSHIONS SAYS HE IS VERY HEARTENED BY THE LATEST ECONOMIC NEWS HE THINKS IT WILL HELP THE COMPANY ACHIEVE CLOSE TO A 30 GAIN IN SALES NEXT YEAR EVEN AFTER STRONG GROWTH THIS YEAR PEOPLE WILL HAVE MORE DISCRETIONARY INCOME HE SAYS IT SOUNDS LIKE OUR GROWTH COULD BE STIMULATED WHILE NEW HIRING ISN'T IMMINENT HE SAYS HE WILL ADD A SECOND PRODUCTION SHIFT AND AT LEAST FIVE JOBS TO THE CURRENT 16 ONCE OUTPUT REACHES A CERTAIN LEVEL SOME OTHER BUSINESS OWNERS SAY THEY ARE CHEERED BY WHAT THEY SEE AS RENEWED WILLINGNESS BY PRIVATE INVESTORS AND LENDERS TO BACK SMALL COMPANIES THE LAST THREE TO FOUR MONTHS HAVE SEEN AN INCREASE IN THE NUMBER OF PEOPLE LOOKING FOR INVESTMENT OPPORTUNITIES SAYS JUDITH FITZPATRICKDAVIS FOUNDER AND PRESIDENT OF SEREX INC A MAYWOOD NJ MAKER OF MEDICALTEST KITS YOU CAN'T SIT ON YOUR MONEY FOREVER SHE SAYS SEREX'S SALES HAVE DECLINED IN THE LAST TWO YEARS FORCING THE COMPANY TO CUT EMPLOYMENT TO SIX PEOPLE CURRENTLY FROM A PEAK OF 24 BUT THE COMPANY HAD BEEN DOWN TO FIVE EMPLOYEES IN NOVEMBER IT ADDED THE SIXTH I'M MUCH MORE OPTIMISTIC THAN LAST YEAR THE FOUNDER SAYS POLDER INC A HARTSDALE NY WHOLESALE DISTRIBUTOR OF UPSCALE HOUSEHOLD GOODS FORESEES AN INCREASE IN REVENUES OF 15 TO 20 IN 1994 FROM ABOUT 16 MILLION THIS YEAR WE JUST FOUND OUT TWO DAYS AGO THAT WE HAVE SECURED A LARGE PIECE OF BUSINESS FROM ONE OF THE LARGER US RETAILERS SAYS CALVIN SCOTT VICE PRESIDENT FOR SALES AND MARKETING POLDER'S FOURTHQUARTER SHIPMENTS WERE STRONG BUT ORDERS TAPERED OFF UNTIL MIDDECEMBER PROBABLY BECAUSE ITS CUSTOMERS UNDERESTIMATED CONSUMER DEMAND HE SAYS I THINK RETAILERS ARE GOING TO NEED PRODUCT IN THE COMING QUARTER AND NEED IT FAST MR SCOTT SAYS THE COMPANY'S WORK FORCE WAS RECENTLY INCREASED BY TWO TO 25 AND AS MANY AS SIX NEW POSITIONS MAY OPEN UP SOON HE SAYS EVEN COMPANIES THAT CONSIDER THEMSELVES RELATIVELY IMMUNE TO THE BUSINESS CYCLE LIKE THE THOUGHT OF ECONOMIC GROWTH XPEDITE SYSTEMS INC OF EATONTOWN NJ WHICH MARKETS A TECHNOLOGY FOR FAXING DOCUMENTS TO MULTIPLE DESTINATIONS SIMULTANEOUSLY NEARLY TRIPLED SALES THIS YEAR TO A PROJECTED 29 MILLION FROM 10 MILLION IN 1992 THOUGH 9 MILLION OF THE INCREASE WAS ATTRIBUTABLE TO AN ACQUISITION WE'RE DEVELOPING A NEW MARKET SAYS ROY ANDERSEN PRESIDENT BUT ECONOMIC GROWTH CAN ONLY BE POSITIVE FOR US HE ADDS FOR EXAMPLE HE SAYS SOME OF XPEDITE'S CUSTOMERS ARE CRUISE COMPANIES THAT FAX INFORMATION TO SEVERAL THOUSAND TRAVEL AGENTS AT THE SAME TIME AS TOURISM PICKS UP SO WILL SUCH FAXING OPERATIONS HE SAYS A BIG NOVEMBER SURGE IN SALES OF BOTH NEW AND EXISTING HOMES SHOULD BE A BOON TO SMALL CONTRACTORS AND THE SELLERS OF APPLIANCES FURNITURE AND OTHER HOUSEHOLD GOODS PEOPLE WILL TEND TO DO MORE RENOVATIONS SAYS LEE CHEVRON OWNER OF DIMENSIONS IN GLASS INC A FAIRFIELD CONN MAKER OF SPECIALTY GLASS TABLETOPS SHOWER DOORS AND OTHER FIXTURES WITH SALES THIS YEAR OF ABOUT 1 MILLION THEY'LL REDO BATHROOMS DEFINITELY OUR BUSINESS WILL INCREASE AS THE ECONOMY GROWS MR CHEVRON ADDS 9312310017 931231 S&P AFFIRMS RATINGS ON AT&T DEBT CITING STRONG MARKET POSITION NEW YORK STANDARD & POOR'S CORP SAID IT AFFIRMED ITS RATINGS ON ABOUT 17 BILLION OF AMERICAN TELEPHONE & TELEGRAPH CO DEBT CITING AT&T'S STRONG MARKET POSITION IN LONGDISTANCE SERVICES AND TELECOMMUNICATIONS EQUIPMENT THE RATINGS AGENCY SAID THE STRONG FINANCIAL PERFORMANCE OF AT&T'S CORE BUSINESSES OVERSHADOWS THE SLIGHT CREDIT WEAKNESS OF AT&T'S FINANCIALSERVICES OPERATIONS AND THE CYCLICAL DOWNTURN IN THE COMPUTER INDUSTRY THAT HAS HURT AT&T'S NCR CORP UNIT S&P AFFIRMED THE DOUBLEA RATING ON AT&T'S SENIOR UNSECURED LONGTERM DEBT AND THE A1PLUS COMMERCIALPAPER RATING AS WELL AS THE DOUBLEA RATINGS OF AT&T CREDIT CORP'S SENIOR DEBT S&P ALSO AFFIRMED RATINGS ON CERTAIN MEDIUMTERM NOTES OF A SPUNOFF UNIT AT&T CAPITAL CORP WHICH ARE GUARANTEED BY AT&T AT&T OWNS MORE THAN 80 OF AT&T CAPITAL S&P SAID IT WITHDREW ITS RATINGS ON ABOUT 12 BILLION IN MCCAW CELLULAR COMMUNICATIONS CO'S SUBORDINATED DEBT CITING THE REDEMPTION OF THESE ISSUES TODAY AT&T'S AND MCCAW'S RATINGS HAVE BEEN UNDER REVIEW SINCE NOVEMBER S&P SAID AT&T'S PROPOSED ACQUISITION OF MCCAW WILL INCREASE THE TELECOMMUNICATIONS GIANT'S RISK TO SOME EXTENT BUT BECAUSE OF ITS STRONG CASH FLOW AT&T IS EXPECTED TO QUICKLY PAY DOWN ABOUT 5 BILLION IN DEBT IT TAKES ON AS A RESULT OF THE ACQUISITION CURRENT RATINGS ANTICIPATE THAT AT&T WILL INVEST ADDITIONAL CAPITAL TO EXPAND THE WIRELESS BUSINESS FOLLOWING THE MCCAW ACQUISITION S&P SAID WHILE NOTING THAT AT&T'S RATINGS OUTLOOK WAS STABLE THE AGENCY SAID THAT THE STRENGTH OF AT&T'S CORE OPERATIONS IS LIMITED BY INCREASING COMPETITION IN ALL MARKETS 9312310016 931231 WORLD MARKETS PRICES FALL TO PROFITTAKING IN LONDON BUT SCORE IN TOKYO FRANKFURT HONG KONG AND TAIPEI A WALL STREET JOURNAL NEWS ROUNDUP WIDESPREAD PROFITTAKING BASHED LONDON STOCKS WHICH FELL SHARPLY FOLLOWING THE PREVIOUS DAY'S RECORD FINISH BUT FRANKFURT SHARES CLIMBED 243 TO A NEW HIGH HONG KONG SHARES SOARED 37 TO A RECORD AS THE BENCHMARK INDEX POSTED ITS SECONDBIGGEST POINT JUMP EVER AND TAIPEI PRICES ROCKETED UP 5 TO A 30MONTH HIGH PARTLY ON TAIWAN'S QUEST FOR TRADE IMPROVEMENTS WITH CHINA MEANWHILE THE TOKYO MARKET WAS CLOSED FRIDAY AFTER FINISHING THE YEAR WITH ITS FIRST ANNUAL GAIN SINCE 1989 FOLLOWING NEW YEAR OBSERVANCES THE BOURSE WILL REOPEN JAN 4 WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11117 UP 008 REFLECTING LOWER AMERICAN AND EUROPEAN MARKETS AND HIGHER ASIA/PACIFIC MARKETS HOME CONSTRUCTION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 15207 UP 348 OR 23 WITH HENDERSON LAND DEVELOPMENT OF HONG KONG RISING 99 IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT 27483 DOWN 747 OR 27 WITH DUNLOP ESTATES OF MALAYSIA SLIDING 10 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 332 POINTS JUST SHY OF 1 TO 34288 FRACTIONALLY ABOVE THE DAY'S LOW AND SHARPLY OFF THE HIGH OF 34808 THE FT 30STOCK INDEX LOST 283 POINTS OR 11 TO 25704 VOLUME WAS 5541 MILLION SHARES COMPARED WITH 4793 MILLION SHARES A DAY EARLIER PARTICIPANTS TERMED LONDON'S DROP AN EXPECTED BOUT OF PROFITTAKING RATHER THAN A SIGNAL OF A LONGERTERM CORRECTION FOLLOWING THE MARKET'S RECENT RECORDSETTING PACE TRADERS EXPECT SIGNIFICANT PRICE RISES NEXT MONTH PARTICULARLY IF THE OUTLOOK FOR A CUT SOON IN BRITAIN'S BASE LENDING RATE REMAINS STRONG IN FRANKFURT THE DAX 30STOCK INDEX JUMPED 5198 POINTS TO 226668 IN LIGHT TRADING DURING MOST OF THE SESSION THE INDEX MOVED WITHIN A NARROW BAND OF ABOUT 13 POINTS AND ONLY IN THE FINAL 10 MINUTES DID PRICES SHOOT UP UNEXPECTEDLY LED BY A FEW BLUE CHIPS IN PARIS EQUITIES ENDED MIXED TO LOWER IN QUIET DEALINGS DEVOTED MAINLY TO PORTFOLIO ADJUSTMENTS BUT IN AMSTERDAM SHARES FINISHED BROADLY HIGHER IN THE BOURSE'S FINAL SESSION THIS YEAR AS A STRONG DOLLAR AND FIRMER DUTCH BONDS SUPPORTED SENTIMENT THE ANNUAL GAIN WAS 49 IN MADRID STOCKS GAINED SHARPLY ON A COMBINATION OF YEAREND WINDOW DRESSING BUYING STOCKS THAT HAVE PERFORMED WELL TO IMPROVE A PORTFOLIO'S LOOK AND A TECHNICAL RECOVERY FROM THE SPANISH CENTRAL BANK'S MANAGEMENT TAKEOVER OF A COMMERCIAL BANK THE PREVIOUS DAY IN ZURICH STOCKS WITHSTOOD LATE PROFITTAKING AND POSITIONCLEARING TO CLOSE HIGHER TAKING THE MARKET UP 40 THIS YEAR IN BRUSSELS PRICES WERE MIXED TO STRONGER WITH THE MAIN INDEX CLOSING OUT THIS YEAR'S ACCOUNTS JUST FRACTIONALLY BELOW THE 1993 HIGH FOR A 12MONTH GAIN OF 31 BUT IN STOCKHOLM SHARES RETREATED IN SUBDUED ACTIVITY WITH BANKING ISSUES AMONG THE HARDEST HIT IN MEXICO CITY STOCKS SET ANOTHER RECORD RISING SLIGHTLY IN THIN TRADING AND BOOSTING THE MARKET 48 FOR THIS YEAR IN TOKYO IN THURSDAY'S HALFDAY SESSION THAT CLOSED OUT THE YEAR'S DEALINGS THE NIKKEI 225STOCK INDEX CLIMBED 14521 POINTS TO 1741724 ALSO THE SESSION PEAK AFTER A 14082POINT RISE WEDNESDAY FOR 1993 THE INDEX EKED OUT A 29 GAIN THOUGH IT WAS 63 BELOW JAPAN'S MARCH 31 FISCALYEAR FINISH OF 1859145 WITH MOST INVESTORS ALREADY ON HOLIDAY FIRSTSECTION VOLUME WAS ESTIMATED AT 120 MILLION SHARES IN THE SHORTENED SESSION COMPARED WITH 110 MILLION SHARES AT MIDDAY WEDNESDAY WHEN TURNOVER TOTALED 2159 MILLION SHARES ADVANCING ISSUES OUTNUMBERED RETREATING ISSUES 616278 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 208 POINTS WEDNESDAY ROSE 1004 TO 143931 UP 10 FOR THIS YEAR AND JUST 05 HIGHER THAN THE MARCH 31 FISCALYEAR FINISH OF 143187 IN THE FINAL RISE TO SNAP THE THREEYEAR ANNUAL LOSING STREAK TOKYO STOCKS ATTRACTED BUYING BY JAPANESE AND US INVESTMENT TRUST FUNDS BUYING BY THE 19 JAPANESE INVESTMENT TRUSTS THAT WERE SET UP THIS WEEK STEADILY LIFTED SHARE PRICES WHILE THEIR US COUNTERPARTS CAME IN THURSDAY FOR WINDOW DRESSING TO ENSURE A STRONG 1993 CLOSE FOR VALUATION PURPOSES AMONG THE STRONGEST GAINERS WERE EXPORTERS SUCH AS AUTO AND ELECTRICALMACHINERY MAKERS AS THE JAPANESE YEN CONTINUED TO WEAKEN AGAINST THE DOLLAR IN SYDNEY SHARES RALLIED 13 SUPPORTED BY STRONG OVERSEAS EQUITY MARKETS HIGHER BASEMETAL PRICES AND A JUMP IN THE PRICE OF GOLD THOUGH VOLUME WAS THIN WITH AUSTRALIAN PARTICIPANTS RELUCTANT TO SELL INVESTORS FOUND A SCARCITY OF STOCKS TO BUY AND THE PURCHASE SIDE INCLUDED A HUGE NUMBER OF FOREIGN INVESTORS IN HONG KONG AMID EXTREME BULLISHNESS THE HANG SENG INDEX LEAPED 4277 POINTS TO A RECORD 1187747 FOLLOWING NEWS THAT CHINA WILL UNIFY ITS EXCHANGE RATES TOMORROW ONLY LAST TUESDAY THE INDEX SCORED AN UNPRECEDENTED JUMP OF 53038 POINTS THE INDEX THURSDAY HIT AN INTRADAY PEAK OF 1195906 OR A 50929POINT GAIN WHITTLED DOWN BY LATE PROFITTAKING CHINA'S ELIMINATION OF ITS DUAL EXCHANGERATE SYSTEM AND ADOPTION OF A SINGLE EXCHANGE RATE FOR THE YUAN PAVES THE WAY EVENTUALLY FOR A FULLY CONVERTIBLE CHINESE CURRENCY THE MOVE WAS VIEWED AS CONFIRMING THE BEIJING GOVERNMENT'S COMMITMENT TO ECONOMIC REFORMS THAT WILL BENEFIT HONG KONG ALREADY INCREASINGLY DEPENDENT ON CHINA'S RAPID ECONOMIC GROWTH AND IN TAIPEI STOCKS SOARED 5 TO THE HIGHEST LEVEL SINCE JUNE 28 1991 AND THE BELLWETHER INDEX RECORDED ITS LARGEST DAILY POINT GAIN IN THREE YEARS BOOSTED BY PROPOSED DIRECT SHIPPING LINKS WITH CHINA AND FRESH OVERSEAS CAPITAL FLOWING INTO THE MARKET AND TAIWAN'S FUND MANAGEMENT FIRMS SHIPPING STOCKS RALLIED AFTER TAIWAN'S ECONOMIC AFFAIRS CHIEF SAID HE WOULD SEEK THE SHIPPING LINKS BETWEEN CERTAIN PORTS IN TAIWAN AND CHINA THIS WOULD REQUIRE THE TAIWAN GOVERNMENT TO LIFT ITS BAN ON DIRECT TRANSPORTATION CONNECTIONS WITH CHINA BUT IN SINGAPORE SHARES SLUMPED 15 SNAPPING A FIVESESSION RECORDBREAKING CLIMB AS INVESTORS REELED IN PROFITS BUT PRICES ENDED ABOVE THE DAY'S LOWS SUGGESTING UNDERLYING SUPPORT FOR THE NEAR TERM THE CORRECTION WAS DEEMED HEALTHY FOLLOWING A BUYING FRENZY THIS WEEK THAT PRODUCED RECORD TURNOVER IN TWO SESSIONS IN WELLINGTON SHARES ADVANCED 12 BENEFITING FROM A SLIGHT FALL IN THE VALUE OF THE NEW ZEALAND DOLLAR AGAINST ITS US COUNTERPART THE WEAKER US CURRENCY LED SOME USBASED INVESTORS TO PLACE ORDERS FOR NEW ZEALAND EQUITIES THE SEOUL AND MANILA BOURSES WERE CLOSED FOR HOLIDAYS IN BANGKOK STOCKS ROSE IN ACTIVE TRADING TO A RECORD 168285 ON THE SET INDEX UP 1422 POINTS DESPITE HEAVY PROFITTAKING HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9312310014 931231 ROYAL DUTCH/SHELL AND MONTEDISON SPA AGREE TO MERGE BULKPLASTICS BUSINESS BY MARTIN DU BOIS STAFF REPORTER OF THE WALL STREET JOURNAL ROYAL DUTCH/SHELL GROUP AND MONTEDISON SPA AGREED TO MERGE MOST OF THEIR POLYPROPYLENE AND POLYETHYLENE BUSINESSES CREATING A WORLD LEADER IN THE TROUBLED PLASTICS INDUSTRY CAPPING MORE THAN A YEAR OF DIFFICULT TALKS THE TWO COMPANIES SAID THEY AGREED IN PRINCIPLE TO MERGE THE BULKPLASTICS OPERATIONS IN AN EQUALLY OWNED JOINT VENTURE WITH OPERATIONS IN THE US EUROPE AND ASIA THE NEW COMPANY WHICH WOULD HAVE TOTAL ASSETS OF ABOUT 66 BILLION AND 3 BILLION IN ANNUAL SALES IS TO ABSORB 21 BILLION OF DEBT FROM MONTEDISON THE MAIN OPERATING ARM OF THE SCANDALHIT AND FINANCIALLY TROUBLED FERRUZZI FINANZIARIA SPA ANALYSTS SAID THEY EXPECT FURTHER MERGERS TO FOLLOW IN THE BULKPLASTICS INDUSTRY WHICH IS PLAGUED BY SEVERE OVERCAPACITY IN EUROPE AND WEAK PRICES WORLDWIDE EVERYBODY'S BEEN TALKING TO EVERYBODY ELSE FOR QUITE SOME TIME ONE HAS TO EXPECT SOME FURTHER DEALS SAID CHARLES BROWN A CHEMICALINDUSTRY ANALYST AT GOLDMAN SACHS IN LONDON OFFICIALS AT ROYAL DUTCH/SHELL AND MONTEDISON SAID THE PLANNED JOINT VENTURE WILL BE IN A FAVORABLE POSITION TO COMPETE IN THIS TOUGH MARKET MONTEDISON IS CONTRIBUTING ITS KNOWHOW IN ADVANCED PLASTICS AND ROYAL DUTCH/SHELL ITS MARKETING SKILLS AND A STABLE SOURCE OF RAW MATERIALS IN ADDITION THE VENTURE WOULD COMBINE MONTEDISON'S STRENGTHS IN SOUTHERN EUROPE AND ON THE US MARKET WITH ITS HIMONT INC SUBSIDIARY AND ROYAL DUTCH/SHELL'S PRESENCE IN NORTHERN EUROPE CANADA JAPAN AND AUSTRALIA OFFICIALS SAID IT'S A VERY NICE FIT ON THE TECHNOLOGICAL SIDE AND A GOOD GEOGRAPHIC FIT SAID A MONTEDISON SPOKESMAN IN MILAN THERE ARE SYNERGIES HERE ADDED A ROYAL DUTCH/SHELL SPOKESMAN IN LONDON THE TRANSACTION SCHEDULED TO BE COMPLETED IN 1994 ALLOWS ROYAL DUTCH/SHELL TO ACQUIRE A BIGGER PRESENCE IN A PROMISING SEGMENT OF THE PETROCHEMICAL BUSINESS THOUGH CURRENT PROFIT MARGINS ARE EXTREMELY THIN OR NONEXISTENT IN THE INDUSTRY OVER THE LONGER TERM POLYPROPYLENE AND POLYETHYLENE ARE BELIEVED TO HAVE A BRIGHT FUTURE TECHNICAL ADVANCES ARE EXPECTED TO MAKE IT POSSIBLE FOR THESE RELATIVELY CHEAP PLASTICS TO REPLACE MOREEXPENSIVE PLASTICS AND METALS IN MANY APPLICATIONS IN A FEW YEARS ROYAL DUTCH/SHELL EXPECTS THE JOINT VENTURE TO MAKE A POSITIVE CONTRIBUTION TO OVERALL RESULTS AT THE WORLD'S SECONDLARGEST OIL COMPANY IN THE FIRST NINE MONTHS OF THE YEAR THE ANGLODUTCH GROUP'S CHEMICAL DIVISION POSTED A LOSS OF 341 MILLION 5031 MILLION AT MONTEDISON THE DEAL IS SEEN AS A KEY STEP IN ITS RESTRUCTURING DEBTRIDDEN MONTEDISON AND PARENT COMPANY FERRUZZI ARE SEEKING TO RAISE 12 TRILLION LIRE 706 BILLION OF FRESH EQUITY DEBT AT THE FERRUZZI GROUP THE AGROINDUSTRIAL EMPIRE OF THE LATE RAUL GARDINI TOTALS 38 TRILLION LIRE OF WHICH 16 TRILLION LIRE IS SHOULDERED BY MONTEDISON MR GARDINI COMMITTED SUICIDE IN JULY HOURS BEFORE HE WAS TO BE ARRESTED ON CORRUPTION CHARGES CREDITORS SUBSEQUENTLY OUSTED FERRUZZI'S MANAGEMENT AFTER THE COMPANY FAILED TO MAKE DEBT PAYMENTS FERRUZZI OFFICIALS HOPE THAT THE PLAN TO TRANSFER 21 BILLION OF MONTEDISON'S DEBT TO THE VENTURE WITH ROYAL DUTCH/SHELL WILL GIVE A BOOST TO THE ITALIAN GROUP'S RESTRUCTURING WHICH WAS APPROVED BY SHAREHOLDERS AND BANK CREDITORS EARLIER THIS MONTH AND WHILE THE DEAL MEANS ROYAL DUTCH/SHELL IS INDIRECTLY TAKING OVER SOME MONTEDISON DEBT THE ANGLODUTCH COMPANY IS CONTRIBUTING LESS TO THE JOINT VENTURE THAN ITS ITALIAN PARTNER INDEED ACCORDING TO OFFICIALS CLOSE TO THE DEAL MONTEDISON IS CONTRIBUTING 44 BILLION IN ASSETS WITH ITS HIMONT INC AND MOPLEFAN SPA UNITS WHILE ROYAL DUTCH/SHELL IS CONTRIBUTING ASSETS VALUED AT 22 BILLION SHELL'S US POLYPROPYLENE OPERATIONS AREN'T INCLUDED IN THE PLANNED VENTURE FURTHER DETAILS WEREN'T DISCLOSED BUT OFFICIALS CLOSE TO THE TRANSACTION SAID NO CASH PAYMENTS ARE INVOLVED IN A WRITTEN STATEMENT ROYAL DUTCH/SHELL SAID THAT THE 21 BILLION DEBT WOULD BE REFINANCED BY THE NEW COMPANY AND THAT CITIBANK HAD BEEN HIRED TO ARRANGE THE NEW FINANCING ON AN ONGOING BASIS IT IS THE INTENTION THAT THE JOINT ENTERPRISE WILL BE INDEPENDENT AND FINANCIALLY SELFSTANDING THE STATEMENT SAID THE CHAIRMAN OF THE NEW COMPANY FOR WHICH A NAME STILL HAS TO BE CHOSEN IS EXPECTED TO COME FROM MONTEDISON WHILE THE CHIEF EXECUTIVE OFFICER WILL BE FROM ROYAL DUTCH/SHELL THE COMPANY'S HEADQUARTERS WILL BE IN THE NETHERLANDS AND KEY REGIONAL OFFICES IN WILMINGTON DEL AND BRUSSELS ANALYSTS SAID THE NEW COMPANY WILL FACE A VERY TOUGH BUSINESS ENVIRONMENT DEMAND FOR POLYPROPYLENE AND POLYETHYLENE REMAINS WEAK AND HEAVY INVESTMENTS IN THE INDUSTRY OVER THE PAST FEW YEARS HAVE CREATED DAMAGING OVERCAPACITY MONTEDISON FOR EXAMPLE HAS SEVERAL NEW PLANTS THROUGHOUT THE WORLD SCHEDULED TO BEGIN OPERATIONS IN THE COMING MONTHS AND ANALYSTS DON'T SEE MARKET CONDITIONS IMPROVING FOR AT LEAST 18 MONTHS THERE'S SO MUCH OVERCAPACITY AND NOBODY IS CLOSING ANYTHING THE ONLY WAY FOR THE INDUSTRY TO MOVE FORWARD ARE MERGERS LIKE THIS SAID PAUL SPEDDING ENERGY ANALYST AT KLEINWORT BENSON SECURITIES IN LONDON THE MONTEDISONROYAL DUTCH/SHELL VENTURE WOULD BE THE WORLD'S BIGGEST PLAYER IN THE POLYPROPYLENE FIELD PRODUCING 33 MILLION TONS A YEAR OR CONTROLLING ABOUT 18 OF WORLDWIDE PRODUCTION IN ADDITION TO 700000 TONS OF POLYETHYLENE THAT WOULD PLACE THE VENTURE FAR AHEAD OF ITS MOST IMMEDIATE RIVAL AMOCO WHICH ACCOUNTS FOR AN ESTIMATED 5 OF GLOBAL POLYPROPYLENE PRODUCTION BUT ANALYSTS SAID THE MONTEDISONROYAL DUTCH/SHELL COMBINATION STILL WON'T BE ABLE TO DOMINATE THE BUSINESS ON A GLOBAL OR EVEN A REGIONAL SCALE IT'LL STILL BE A FRAGMENTED INDUSTRY WITH A LOT OF PLAYERS LACKING DOMINANCE IN A MARKETING SENSE SAID GOLDMAN SACHS'S MR BROWN WE MIGHT SEE SEVERAL SIZABLE FURTHER DEALS IN THE NEXT COUPLE OF YEARS 9312310013 931231 TECHNOLOGY & MEDICINE GENENTECH INC RECEIVES FDA APPROVAL FOR BREAKTHROUGH CYSTIC FIBROSIS DRUG BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL THE FOOD AND DRUG ADMINISTRATION APPROVED GENENTECH INC'S DNASE A BREAKTHROUGH TREATMENT FOR CYSTIC FIBROSIS THE CLEARANCE MEANS THAT THE DRUG WHICH HAS BEEN SHOWN IN CLINICAL TESTS TO SIGNIFICANTLY IMPROVE BREATHING ABILITY IN PEOPLE WITH THE DISORDER WILL BE AVAILABLE BY THE END OF JANUARY UNDER THE BRAND NAME PULMOZYME DOCTORS SAY DNASE CLEARS OUT THICK MUCUS THAT DEVELOPS IN LUNGS OF CYSTIC FIBROSIS PATIENTS MAKING BREATHING EASIER AND CUTTING DOWN ON INFECTIONS IT IS THE FIRST NEW TREATMENT IN 30 YEARS DEVELOPED FOR THE INHERITED DISORDER WHICH AFFECTS THE PANCREAS AND THE RESPIRATORY SYSTEM AND FOR WHICH THERE IS NO CURE OTHER MAJOR TREATMENTS FOR CYSTIC FIBROSIS ADDRESS CERTAIN DIGESTIVE DISORDERS RESULTING FROM THE MALFUNCTIONING OF THE PANCREAS OR THEY INCORPORATE ANTIBIOTICS ADMINISTERED TO TREAT INFECTIONS THOUSANDS OF CHILDREN AND ADULTS WILL BE BREATHING EASIER SAID RISA GANS A 34YEAROLD CYSTIC FIBROSIS PATIENT IN HOLLYWOOD FLA WHO PARTICIPATED IN CLINICAL TRIALS OF THE DNASE INHALATION THERAPY FOR NEARLY TWO YEARS I BREATHE EASIER I DON'T COUGH NEARLY AS MUCH AND I DON'T GET AS MANY INFECTIONS ROBERT J BEALL EXECUTIVE VICE PRESIDENT FOR MEDICAL AFFAIRS OF THE CYSTIC FIBROSIS FOUNDATION IN BETHESDA MD SAID IN A STATEMENT THAT IN ESSENCE THE DRUG THERAPY OFFERS INDIVIDUALS WITH THE DISEASE A WAY TO BETTER MANAGE THEIR DISEASE TO MAINTAIN THEMSELVES IN A HOLDING PATTERN UNTIL RESEARCHERS FIND A CURE FOR GENENTECH A SOUTH SAN FRANCISCO CALIFBASED BIOTECHNOLOGY CONCERN THE APPROVAL OF DNASE IS LIKELY TO PROVIDE A FINANCIAL WINDFALL WITH ABOUT 30000 CYSTIC FIBROSIS PATIENTS IN THE US AND ANOTHER 30000 IN EUROPE ANALYSTS PREDICT THAT ANNUAL SALES MIGHT REACH 500 MILLION WITHIN THREE YEARS THE COMPANY'S CURRENT ANNUAL REVENUE IS ABOUT 500 MILLION GENENTECH HASN'T YET DISCLOSED ESTIMATED COST OF THE THERAPY BUT ANALYSTS SPECULATE IT WILL BE ABOUT 10000 A YEAR FOR EACH PATIENT TREATMENT IS ADMINISTERED THROUGH A HANDHELD CANISTER CONTAINING A PLASTIC TUBE THROUGH WHICH THE DRUG IS INHALED SALES SHOULD BUILD QUICKLY SAID DAVID K STONE MANAGING DIRECTOR OF COWEN & CO IN BOSTON DESCRIBING IT AS A BREAKTHROUGH DRUG APPARENTLY BUOYED BY THE FDA APPROVAL GENENTECH'S STOCK ROSE 1125 OR 23 TO CLOSE AT 4950 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE GENENTECH HAS ADEQUATE SUPPLY OF DNASE TO MEET DEMAND SAID G KIRK RAAB PRESIDENT AND CHIEF EXECUTIVE ADDING THAT THE COMPANY SHOULD HAVE THE PRODUCT SHIPPED TO HOSPITALS AND HOME HEALTHCARE PROVIDERS WITHIN THREE WEEKS GENENTECH YESTERDAY ALSO RECEIVED APPROVAL TO MARKET THE THERAPY IN CANADA WHICH HAS AN ESTIMATED 3000 CYSTIC FIBROSIS PATIENTS AND HAS RECEIVED GOVERNMENT APPROVAL IN AUSTRIA SWEDEN AND NEW ZEALAND APPROVAL IS ALSO EXPECTED SOON IN THE UNITED KINGDOM AND OTHER MAJOR EUROPEAN COUNTRIES AS WELL AS ELSEWHERE IN THE WORLD IN WESTERN EUROPE GENENTECH SAID IT WOULD JOINTLY MARKET DNASE WITH ITS SWISS PARENT ROCHE HOLDING LTD THE FDA'S APPROVAL CAME JUST NINE MONTHS AFTER GENENTECH FIRST SOUGHT US REGULATORY APPROVAL THE AGENCY NORMALLY TAKES AS LONG AS TWO YEARS TO APPROVE A NEW MEDICAL PRODUCT IN RECENT YEARS THE FDA HAS TRIED TO ACCELERATE ITS REVIEW OF DRUGS FOR PATIENTS WHO ARE SERIOUSLY ILL ON THE THEORY THAT THEY HAVE MORE TO GAIN FROM QUICK CONSIDERATION OF NEW OR EXPERIMENTAL TREATMENTS CYSTIC FIBROSIS IS A FATAL CONDITION SO ANYTHING YOU CAN DO TO SLOW UP THE DISEASE IS HELPFUL SAID MR STONE THE COWEN & CO ANALYST 9312310012 931231 MARKET 2000 SETS ITS SIGHTS ON THE PRESENT BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION IS EXPECTED TO RELEASE ITS LONGPROMISED MARKET 2000 REPORT IN TIME FOR THE NEW YEAR THAT IS THE CHINESE NEW YEAR WHICH STARTS FEB 10 UNDER FORMER SEC CHAIRMAN RICHARD BREEDEN WHO LAUNCHED THE MARKET 2000 STUDY TWO YEARS AGO THE REPORT WAS TENTATIVELY SCHEDULED FOR RELEASE LAST SPRING THEN LATE SUMMER UNDER CHAIRMAN ARTHUR LEVITT THE DEBUT HAS SLIPPED FROM FALL TO DECEMBER TO THE END OF JANUARY DESPITE THE LONG DRUM ROLL AND SWEEPING TITLE THE MARKET 2000 REPORT IS NOT GOING TO ADDRESS NOR WAS IT INTENDED TO ADDRESS ANY BROAD GLOBAL ISSUES SAYS A SENIOR AGENCY OFFICIAL IT'S GOING TO REALLY TALK ABOUT THE MARKET AS IT IS TODAY BECAUSE THE REPORT WILL ADDRESS TECHNOLOGICAL AND COMPETITIVE ISSUES THAT ARE HARDLY NEW ONE SEC OFFICIAL SUGGESTS A MORE APPROPRIATE TITLE WOULD BE MARKET 1992 THE STUDY IS THE SEC'S FIRST LONG LOOK AT THE EQUITY MARKETS IN MORE THAN 20 YEARS DURING THAT TIME ELECTRONICTRADING SYSTEMS HAVE GAINED GROUND DERIVATIVE FINANCIAL INSTRUMENTS HAVE MUSHROOMED AND BILLIONS OF DOLLARS HAVE POURED INTO MUTUAL FUNDS THE NEW YORK STOCK EXCHANGE HAS SEEN ITS SHARE OF REPORTED TRADES IN NYSELISTED STOCKS DROP TO 6517 IN 1992 FROM 7861 A DECADE EARLIER GAINING MARKET SHARE ARE REGIONAL EXCHANGES AUTOMATEDTRADING SYSTEMS SUCH AS INSTINET AND DEALERS TRADING LISTED STOCKS OUTSIDE ANY EXCHANGE A SENIOR SEC OFFICIAL SAYS THERE'LL BE VERY IMPORTANT VERY TOUGH RECOMMENDATIONS WITH RESPECT TO OUR EQUITY MARKETS HOWEVER THE PROJECT ISN'T DEALING WITH THE GROWTH IN DERIVATIVES OR THE INCREASING POPULARITY OF MUTUAL FUNDS TWENTY YEARS AGO TURMOIL IN THE SECURITIES BUSINESS LED TO A FARRANGING STUDY BY AN INDEPENDENT COMMISSION OF INDUSTRY LEADERS AND EXPERTS THEIR REPORT LED TO MASSIVE CHANGES FOR THE MARKETS IN 1975 WHEN CONGRESS AMONG OTHER THINGS DID AWAY WITH BROKERDEALERS' FIXED COMMISSIONS ONE PROBLEM THE SEC IS WRESTLING WITH TODAY IS THE MOVEMENT OF ORDER FLOW AWAY FROM TRADITIONAL EXCHANGES PARTICULARLY THE BIG BOARD OFFEXCHANGE COMPUTERIZED TRADING SYSTEMS ARE SUCKING STOCK TRADES AWAY FROM THE BIG EXCHANGES FREQUENTLY BY PAYING BROKERS FOR THE ORDERS SUCH TRADING SYSTEMS ARE CURRENTLY REGULATED AS BROKERDEALERS NOT EXCHANGES SUPPORTERS OF THE ELECTRONIC SYSTEMS SAY THEY'RE TECHNOLOGICALLY INNOVATIVE AND COMPETITIVE THE ESTABLISHED EXCHANGES ARE HOWLING ABOUT THE UNFAIR COMPETITION SINCE ELECTRONICTRADING SYSTEMS AREN'T REGULATED AS EXCHANGES AND THEY WARN THAT A DISPERSAL OF ORDERS MEANS THAT CUSTOMERS' ORDERS MAY MISS BUYERS AND SELLERS TRADING ON OTHER SYSTEMS THE SNIPING COMES THROUGH IN THE 58 COMMENT LETTERS FILED BY INTERESTED PARTIES IN RESPONSE TO THE SEC'S ANNOUNCEMENT OF THE MARKET 2000 STUDY MOST OF THE COMMENTS MIGHT BE CHARACTERIZED AS ARGUING THAT WHAT WE DO IS GOOD AND DOESN'T NEED MORE REGULATION AND WHAT OUR COMPETITORS DO IS BAD AND NEEDS MORE REGULATION' SAYS BRANDON BECKER THE SEC'S DIRECTOR OF MARKET REGULATION AND THE SUPERVISOR OF THE MARKET 2000 STUDY THE AMERICAN STOCK EXCHANGE WHICH THE SEC'S MR LEVITT ONCE RAN WARNED IN A 35PAGE COMMENT LETTER THAT THE NEW TRADING SYSTEMS ARE A THREAT TO THE LIVELIHOOD OF THE ESTABLISHED EXCHANGES AND INVESTORS WHILE THE EXCHANGE AGREES THAT INNOVATION OR EXPERIMENTATION WHICH ENHANCES FAIR COMPETITION BETWEEN MARKETS AND WHICH CAN LEAD ULTIMATELY TO MORE EFFICIENT MARKETS SHOULD BE ENCOURAGED THE CURRENT APPROACH BY THE SEC EFFECTIVELY ABANDONS THE GOAL OF INVESTOR PROTECTION INSTINET A PROPRIETARYTRADING SYSTEM OWNED BY REUTERS HOLDINGS PLC USED PART OF ITS 31PAGE COMMENT TO ASSERT ITS TECHNOLOGICAL SUPERIORITY OVER THE EXCHANGES AND TO COMMEND THE SEC FOR ALLOWING INSTINET TO OPERATE UNDER BROKERDEALER REGULATIONS IF COMPETITION AND MARKET FORCES RENDER STOCK EXCHANGES OBSOLETE THAT IS AN OUTCOME ALREADY CONTEMPLATED BY CONGRESS AND THE COMMISSION INSTINET'S GENERAL COUNSEL WROTE IF THE EXCHANGES CONTINUE TO PROVIDE VALUE TO THE SECURITIES MARKETS IT WILL BE AS A RESULT OF INNOVATION AND COMPETITION WE'RE TRYING TO BALANCE A LOT OF DIFFERENT POINTS OF VIEW SAYS THE SEC'S MR BECKER ONE ISSUE THAT WAS ORIGINALLY PART OF THE MARKET 2000 STUDY PAYMENT FOR ORDER FLOW GENERATED SO MUCH CONTROVERSY AND CONGRESSIONAL ATTENTION THAT THE COMMISSION FELT IT COULDN'T WAIT FOR THE REPORT HENCE A SEPARATE INITIATIVE IS UNDER WAY TO HELP THE SEC ASSESS THE INCENTIVES INCLUDING CASH OFFERED BY MARKET MAKERS AND SPECIALISTS FOR THE FLOW OF ORDERS FROM BROKERAGE FIRMS STILL THE STUDY ISN'T LIKELY TO GENERATE THE FARREACHING CHANGES THAT THE REVIEW 20 YEARS AGO DID MARKET 2000 DOESN'T HAVE THE SAME WEIGHTY SUBJECT MATTER TO DEAL WITH SAYS LEE PICKARD WHO WAS THE SEC'S DIRECTOR OF MARKET REGULATION IN 1975 IN THIS GOROUND THERE'S NOT A FUNDAMENTAL MARKET ISSUE THAT'S AT STAKE A NUMBER OF ISSUES IN MARKET 2000 ARE SOMEWHAT INTERESTING TO SOME PEOPLE BUT NOT OF MAJOR SIGNIFICANCE IT'S NOT LIKE UNFIXING COMMISSION RATES BERNARD L MADOFF WHO PAYS BROKERS TO SEND ORDERS TO HIS OFFEXCHANGE MARKET PREDICTS THAT THE SEC WON'T FIND A NEED FOR BROAD CHANGES AS A RESULT OF EITHER ITS LOOK AT PAYMENT FOR ORDER FLOW OR MARKET 2000 JUST BECAUSE YOU GO TO THE DOCTOR DOESN'T MEAN HE'S GOING TO OPERATE 9312310011 931231 FINANCING BUSINESS SUNSHINE MINING CO SUNSHINE MINING CO BOISE IDAHO SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A RIGHTS OFFERING TO HOLDERS OF COMMON STOCK THE TERMS THOUGH NOT DEFINITIVE ANTICIPATE OFFERING ONE RIGHT FOR EVERY 35 SHARES THE METALS CONCERN SAID EACH RIGHT WOULD GIVE THE OWNER THE OPPORTUNITY TO PURCHASE A UNIT CONSISTING OF TWO COMMON SHARES AND A FIVEYEAR WARRANT TO PURCHASE ONE COMMON SHARE SUNSHINE SAID THE PURCHASE PRICE FOR THE UNIT HASN'T BEEN SET A SPOKESMAN SAID THE COMPANY ANTICIPATES 20 MILLION TO 30 MILLION IN PROCEEDS WHICH WILL BE USED TO CONTINUE EXPLORATION AND DEVELOP NEW BUSINESSES 9312310009 931231 OLYMPIA & YORK UNIT SAYS BONDHOLDERS CALL MAIDEN LANE DEBT NEW YORK OLYMPIA & YORK COS USA SAID A GROUP OF ITS BONDHOLDERS CALLED THEIR DEBT WHICH IS SECURED BY ONE OF THE DEVELOPER'S PRIME NEW YORK OFFICE TOWERS BUT THE FINANCIALLY TROUBLED COMPANY SAID THE PARTIES CONTINUE TO NEGOTIATE TO RESTRUCTURE THE TERMS OF THE 200 MILLION OF BONDS THE 10 3/8 BONDS WHICH WERE DUE TO MATURE IN 1995 ARE SECURED BY O&Y USA'S PROPERTY AT 59 MAIDEN LANE IN LOWER MANHATTAN ALTHOUGH O&Y USA HAS MISSED PAYMENTS ON OTHER DEBTS IT IS CURRENT IN ITS INTEREST PAYMENTS ON THE MAIDEN LANE BONDS THE BONDHOLDERS CALLED THEIR DEBT AFTER THE COMPANY AS EXPECTED WAS UNABLE TO POST ADDITIONAL COLLATERAL AGAINST THE BONDS AS IT WAS REQUIRED TO DO O&Y USA IS A SUBSIDIARY OF OLYMPIA & YORK DEVELOPMENTS LTD OF TORONTO WHICH RESTRUCTURED ITS DEBT UNDER CANADIAN BANKRUPTCYCOURT PROTECTION THIS YEAR AS A RESULT OF CALLING THE DEBT THE BONDHOLDERS WILL TAKE POSSESSION OF A CREDIT INSURANCE POLICY CURRENTLY VALUED AT 74 MILLION THAT HAS BACKED THE MAIDEN LANE BONDS O&Y USA SAID IT ALSO PLANS TODAY TO MAKE THE ANNUAL INTEREST PAYMENT OF 208 MILLION ON THE BONDS BUT O&Y USA AND BONDHOLDERS SAID THE PARTIES AGREED THAT THE CREDITOR GROUP WON'T MAKE ANY HOSTILE MOVES TO SEIZE THE BUILDING AT LEAST UNTIL FEB 15 A PERSON FAMILIAR WITH THE NEGOTIATIONS SAID THE PARTIES HOPE TO REACH A DEBT RESTRUCTURING PACT BY OR AROUND THAT TIME O&Y USA WANTS THE BONDHOLDERS TO EXTEND THE TERM OF THE DEBT BEYOND 1995 AND TO ACCEPT A LOWER INTEREST RATE THE MAIDEN LANE DEBT IS HELD BY OLYMPIA & YORK MAIDEN LANE FINANCE CORP A UNIT OF O&Y USA WHICH IS ATTEMPTING TO RESTRUCTURE A TOTAL OF 53 BILLION OF DEBT 9312310008 931231 PEOPLE PATTERNS COMPILED BY DIANE CRISPELL OF AMERICAN DEMOGRAPHICS MAGAZINE LAST YEAR WAS THE YEAR OF THE CHIEF BILL CLINTON BECAME CHIEF EXECUTIVE OF THE LAND WHILE JOHN AKERS PAUL LEGO LORD KING KAY WHITMORE AND OTHERS LEFT THEIR POSTS AS CORPORATE CHIEFS J IGNACIO LOPEZ DE ARRIORTUA LEFT GENERAL MOTORS TWICE AND LANDED AT VOLKSWAGEN AS PURCHASING CHIEF LAST YEAR SAW THREE FEMALE NOMINEES FOR ATTORNEY GENERAL AND BROUGHT THE PHRASE ZOE BAIRD PROBLEM INTO THE LEXICON RUTH BADER GINSBURG WITHOUT INTRODUCING ANY TERMS INTO THE LANGUAGE BECAME THE SECOND FEMALE SUPREME COURT JUSTICE IN 1993 THE TREASURY CUT ITS SALES OF 30YEAR BONDS IN A BID TO CUT COSTS WHILE WALT DISNEY MARKETED 100YEAR BONDS IN A BID TO LOCK IN LOW RATES HERE IS A SUMMARY OF NEWS EVENTS CHRONICLED ON THE FRONT PAGE OF THE WALL STREET JOURNAL THE DATE GIVEN IS FOR THE ACTUAL DATE THE ITEM APPEARED AMERICAN WOMEN OUTNUMBER MEN AND THEIR LABORFORCE PARTICIPATION IS GAINING ON THEM EVEN SO WOMEN WILL NOT MAKE UP A MAJORITY OF THE CIVILIAN LABOR FORCE IN THE NEAR FUTURE IF EVER BECAUSE SO MANY WOMEN WILL CONTINUE TO DROP OUT OF THE NATION'S WORK FORCE EVEN IF TEMPORARILY TO HAVE CHILDREN THE PERCENTAGE OF WOMEN AGED 16 OR OLDER IN THE WORK FORCE GREW TO 58 IN 1992 FROM 51 IN 1979 WHILE THE PERCENTAGE OF MEN IN THE LABOR FORCE FELL TO 76 FROM 78 AS A RESULT WOMEN'S SHARE OF THE LABOR FORCE ROSE TO NEARLY 46 FROM 42 IN 2005 WOMEN WILL MAKE UP ABOUT 48 OF THE US CIVILIAN WORK FORCE ACCORDING TO THE BUREAU OF LABOR STATISTICS' PROJECTIONS THE AGENCY EXPECTS THE GROWTH IN THE NUMBER OF WOMEN IN THE WORK FORCE TO SLOW DOWN RISING TO 63 BY 2005 THE DECLINE IN THE NUMBER OF MEN WORKING ALSO SHOULD SLOW FALLING TO 75 WOMEN AGED 35 TO 44 HAVE SEEN THE FASTEST GAINS IN LABORFORCE PARTICIPATION FROM 64 IN 1979 TO 77 IN 1992 THAT RATE IS EXPECTED TO RISE TO 86 BY 2005 BELOW THE ANTICIPATED 94 RATE FOR MEN OF THE SAME AGE WOMEN AGED 25 TO 34 AREN'T FAR BEHIND WITH 81 EXPECTED TO BE IN THE WORK FORCE IN 2005 COMPARED WITH 94 FOR MEN ALTHOUGH WOMEN OF CHILDBEARING AGE 15 TO 44 HAVE SEEN RAPID INCREASES IN THEIR LABORFORCE RATES IN THE PAST TWO DECADES MANY NEW MOTHERS TEMPORARILY LEAVE THE WORK FORCE AND THAT ISN'T EXPECTED TO CHANGE MANY TAKE UNPAID LEAVES GO BACK TO SCHOOL OR QUIT ONE JOB AND LOOK FOR ANOTHER MEN ALSO MOVE IN AND OUT OF THE LABOR FORCE SAYS HOWARD FULLERTON JR OF THE BUREAU OF LABOR STATISTICS BUT NOT AS MUCH AS WOMEN THE DIFFERENCE BETWEEN COMFORTABLE AND AFFLUENT IS 22500 A YEAR IN SPENDING AND AS MUCH AS 19000 IN SAVINGS HOUSEHOLDS WITH ANNUAL INCOMES OF 50000 TO 69999 SPENT AN AVERAGE OF 46700 IN 1992 COMPARED WITH 69200 FOR HOUSEHOLDS WITH INCOMES OF 70000 OR MORE THE BUREAU OF LABOR STATISTICS' CONSUMER EXPENDITURE SURVEY SHOWS THAT UPPERMIDDLEINCOME HOUSEHOLDS HAD NEARLY 6000 LEFT AFTER TAXES AND EXPENDITURES COMPARED WITH 25000 FOR UPPERINCOME HOUSEHOLDS SOME OF THAT EXTRA MONEY WENT TOWARD MORTGAGE PRINCIPAL WHICH THE SURVEY CONSIDERS AN ASSET TRANSFER RATHER THAN AN OUTOFPOCKET EXPENSE THE MOST AFFLUENT HOUSEHOLDS DIDN'T SPEND MUCH MORE THAN THE NEXT HIGHEST INCOME GROUP ON BASICS SUCH AS FOOD AT HOME UTILITIES GASOLINE AND HOUSEKEEPING SUPPLIES BUT THEY SPENT MORE THAN TWICE AS MUCH ON DISCRETIONARY ITEMS SUCH AS VACATION HOMES AND GARDENING SERVICES FOR EXAMPLE ONE IN FIVE OF THE HIGHESTINCOME HOUSEHOLDS PURCHASED HOUSEKEEPING SERVICES IN 1992 COMPARED WITH 1 IN 10 UPPERMIDDLEINCOME HOUSEHOLDS IN SOME CASES AFFLUENT HOUSEHOLDS AND LOWERINCOME GROUPS ARE EQUALLY LIKELY TO PAY FOR SOMETHING BUT THE AFFLUENT SPEND MUCH MORE ON IT THAN THE OTHER GROUPS DO ABOUT 11 OF THOSE WITH INCOMES OF 70000 OR MORE PAID COLLEGE TUITION IN 1992 AS DID 9 OF THOSE WITH INCOMES OF 50000 TO 69999 BUT THE AVERAGE EXPENDITURE FOR TUITION WAS 7000 FOR THE MOST AFFLUENT HOUSEHOLDS COMPARED WITH LESS THAN 3000 FOR THE SECONDHIGHEST INCOME GROUP OLDER PEOPLE MAY BE MORE OPPOSED THAN YOUNGER PEOPLE TO EUTHANASIA BUT THAT'S NOT NECESSARILY BECAUSE THEY FEEL MORE VULNERABLE THE PROPORTION OF MIDDLEAGED AND ELDERLY PEOPLE WHO OPPOSE EUTHANASIA HAS FLUCTUATED SHARPLY IN RECENT YEARS FROM LESS THAN 20 TO MORE THAN 60 BUT PEOPLE'S ATTITUDES TOWARD EUTHANASIA DO NOT CHANGE AS THEY GET OLDER ACCORDING TO RAYMOND M LEINBACH DIRECTOR OF THE CENTER FOR GERONTOLOGY AT OLD DOMINION UNIVERSITY AN ANALYSIS OF THE GENERAL SOCIAL SURVEY CONDUCTED BY THE NATIONAL OPINION RESEARCH CENTER IN CHICAGO SHOWS THAT THE POPULATION AGED 83 TO 85 IN 1991 WAS NOT SIGNIFICANTLY MORE OPPOSED TO EUTHANASIA THAN IT HAD BEEN AT THE AGES OF 69 TO 71 IN 1977 THE SAME WAS TRUE FOR OTHER THREEYEAR AGE GROUPS RANGING FROM 45TO47YEAROLDS IN 1977 TO 80TO82YEAROLDS IN 1991 IN SOME CASES A SLIGHT DROP IN OPPOSITION OCCURRED OVER THE 14 YEARS AMONG 28 FACTORS IN THE STUDY AGE RANKED 11TH IN TERMS OF ITS ABILITY TO PREDICT ATTITUDES TOWARD EUTHANASIA ATTENDANCE AT RELIGIOUS SERVICES RANKED FIRST FOLLOWED BY STRENGTH OF RELIGIOUS CONVICTION RACE AND REGION OF THE COUNTRY HOWEVER MR LEINBACH NOTES THAT NONE OF THESE FACTORS EXPLAINS MUCH OF THE DIFFERENCE BETWEEN PEOPLE WHO OPPOSE EUTHANASIA AND THOSE WHO DON'T AND SUGGESTS THAT FACTORS NOT INCLUDED IN THE STUDY SUCH AS HEALTH STATUS MAY BE IMPORTANT TOO ALMOST HALF OF THE 69 OF AMERICANS WHO BOUGHT FILM IN THE PAST SIX MONTHS SAY THEY TAKE MORE PICTURES THAN THEY DID FIVE YEARS AGO THE MAIN REASON FOR THE INCREASE IS CHILDREN AND GRANDCHILDREN MENTIONED BY 47 OF RESPONDENTS TO A FUJI PHOTO FILM USA SURVEY AT THE SAME TIME OF THE 28 WHO SAY THEY ARE TAKING FEWER PICTURES TODAY 65 CITE FEWER OPPORTUNITIES AS A REASON PERHAPS BECAUSE THEY ARE SO BUSY WITH CHILDREN MANY QUALIFIED STUDENTS ARE TURNED AWAY FROM NURSING SCHOOL A STUDY FROM THE AMERICAN ASSOCIATION OF COLLEGES OF NURSING FOUND THAT 42 OF THE MORE THAN 33000 STUDENTS ACCEPTED INTO ENTRYLEVEL BACCALAUREATE PROGRAMS FOR THE 199394 ACADEMIC YEAR COULD NOT BE ACCOMMODATED MOSTLY BECAUSE CLASSROOMS WERE FILLED BUT ALSO BECAUSE SCHOOLS COULDN'T AFFORD SUFFICIENT FACULTY SOME STUDENTS ARE ACCEPTED BY SEVERAL SCHOOLS WHICH INCREASES THEIR CHANCES OF BEING ACCOMMODATED BY AT LEAST ONE EVEN SO THE DEMAND FOR NURSES IS GROWING FASTER THAN THE SUPPLY 9312310007 931231 REVIEW & OUTLOOK EDITORIAL NO THANKS FOR THE MEMORIES CHINA HAS JUST BEEN CELEBRATING THE BIRTH OF MAO TSETUNG WHO ENTERED THIS ORB DEC 26 1893 THE GREAT HELMSMAN MUST BE SPINNING IN HIS GLASS CASE SINCE THE EVENT WAS TAKEN OVER BY CAPITALIST ROADERS SELLING TRINKETS SO TACKY THAT AN ICONCOLLECTOR MUST BLUSH A MAO YOYO ANYONE THE IRONY IS RICH BUT TYPICAL ALMOST EVERYTHING MAO STOOD FOR IS NOW HISTORY IN CHINA HE BELIEVED IN CLASS STRUGGLE IN TODAY'S CHINA CLASS IS MONEY NOT REVOLUTIONARY BACKGROUND HE BELIEVED IN THE FORCE OF IDEOLOGY TODAY'S CHINA COULD NOT CARE LESS HE BELIEVED IN PEOPLE'S WARFARE TODAY'S CHINA PREFERS A LEANER PROFESSIONALIZED ARMY CHINA PRESERVES MAO AS AN ICON BUT NOT HIS WORKS SUCH CONTRADICTIONS WERE NOT UNKNOWN IN MAO'S OWN LIFE HE WAS BORN THE SON OF A POOR PEASANT BUT HIS FATHER LATER DID NICELY AS A GRAIN DEALER AND SMALL FARMER THE KIND OF KULAK WHO WOULD BE LIQUIDATED SO ENTHUSIASTICALLY BY HIS SON MAO JOINED THE COMMUNIST PARTY IN 1921 AND SHORTLY AFTER THE KUOMINTANG RISING TO PROMINENT POSITIONS IN BOTH A FAMOUS PHOTO FROM 1945 SHOWS HIM GENIALLY TOASTING CHIANG KAISHEK DURING THE CULTURAL REVOLUTION THOUSANDS WOULD BE PERSECUTED SOME UNTO DEATH FOR LESS INTIMATE TIES WITH THE KMT MAO CAME TO POWER IN 1949 AND RULED UNTIL HIS DEATH IN 1976 TO HIS DEFENDERS HE WILL BE REMEMBERED FOR HIS ROLE IN RESTORING CHINESE NATIONAL UNITY AND PRIDE HE CLAIMED CREDIT FOR INDUCING CHINA TO STAND UP HOWEVER DESIRABLE THIS GOAL HIS METHOD OF REACHING IT BROUGHT ENORMOUS DESTRUCTION OF LIVES AND CULTURAL TRADITIONS IF HISTORY HAD A CALCULATOR MAO MIGHT WELL RANK AS THE MAN RESPONSIBLE FOR MORE DEATHS THAN ANY OTHER IN HISTORY AS CHINA SCHOLAR LUCIAN PYE RECENTLY NOTED NO OTHER CHINESE RULER MATCHED HIM IN THE NUMBERS OF PEOPLE KILLED BANISHED FROM THEIR HOMES TO RURAL EXILE IMPRISONED BOTH IN THE GULAGS AND IN CASTELIKE CATEGORIES OF CLASS IDENTITIES AND WHO STARVED IN POLICYPRODUCED FAMINES WHY THEN TODAY'S BOOM IN MAO TRINKETS WE SERIOUSLY DOUBT THAT MORE THAN A TINY FRACTION OF CHINESE WISH TO RETURN TO THE DAYS OF CLASS WARFARE AND MASS CAMPAIGNS IF THE MAO BINGE NEEDS TO BE EXPLAINED AS ANYTHING MORE THAN A FAD THEN IT IS PROBABLY A REACTION TO THE GRUBBY EXCESSES OF CONTEMPORARY CHINA NOT A YEARNING FOR THE THRILLS OF STRUGGLE SESSIONS WE NOTE FOR EXAMPLE THAT THE OFFICIAL CHINA DAILY HAS MADE POINTED REFERENCES TO MAO NOT HANDING OUT JOBS AND FAVORS TO HIS FAMILY A COMMON PRACTICE AMONG TODAY'S CADRES WHILE MOST CHINESE HAVE BENEFITED FROM DENG XIAOPING'S ECONOMIC REFORMS IMPROVEMENT HAS LEVELED OFF FOR MANY PARTICULARLY STATE WORKERS AND PEASANTS WITH SMALL HOLDINGS THEY FEAR THE FORCES OF INFLATION AND COMPETITION THEY ONCE DIDN'T HAVE TO WORRY ABOUT AT A TIME OF GREAT CHANGE SUCH AS IN TODAY'S CHINA THE VIRTUES OF THE PAST CAN BE EXAGGERATED IN MEMORY MERCIFULLY HOWEVER THAT TIME IS OVER A RECENT NEWSPAPER PHOTO SHOWED POSTERS OF MAO AND ELVIS ON SALE SIDE BY SIDE AT A STREET MARKET IN SOUTHERN CHINA A BIZARRE JUXTAPOSITION NOT WITHOUT SOME RESONANCE BOTH MEN HAD THEIR GLORY DAYS IN THE 1950S BOTH STARTED WITH GREAT PROMISE AND ENDED PATHETICALLY BOTH ARE TODAY ICONS OF THE DISPOSSESSED ELVIS AT LEAST DESTROYED ONLY HIMSELF 9312310006 931231 LEISURE & ARTS BOOKSHELF WINTER READING FOR THE INCOMPLEAT ANGLER BY DAVE SHIFLETT MOST FLYFISHERS SAVE FOR THE SEVERELY ADDICTED HAVE SET ASIDE THEIR RODS FOR THE WINTER AND MUST CONTENT THEMSELVES WITH CASTING FOR LITERARY TROUT A FEW OF WHICH CAN BE FOUND SWIMMING AROUND IN HOWELL RAINES'S FLY FISHING THROUGH THE MIDLIFE CRISIS WILLIAM MORROW 352 PAGES 22 AS TROUT BOOKS GO THIS ONE IS PROBABLY A KEEPER WHICH ISN'T THE SAME AS SAYING IT WOULD BE FUN TO GO FISHING WITH MR RAINES CURRENTLY CHIEF SAGE ON THE NEW YORK TIMES'S EDITORIAL PAGE TROUT WORSHIPERS WILL APPRECIATE MR RAINES'S DEVOTION TO HIS PREY PERFECT BEINGS ACCORDING TO THE AUTHOR WHO DO NOT EXIST FOR OUR PLEASURE IT IS OF LITTLE USE REMINDING SUCH PEOPLE THAT TROUT EAT NOT ONLY THEIR OWN YOUNG BUT HUMAN FLESH AS WELL AS ILLUMINATED BY THE STORY OF ROBERT LINDSEY WHICH MR RAINES DOES NOT INCLUDE IN HIS BOOK BUT WHICH IS VITAL TO THOSE WHO DESIRE TO BE TROUT LITERATE MR LINDSEY WAS FISHING ON THE WYOMING PART OF FLAMING GORGE RESERVOIR ON JULY 27 1991 WHEN HIS HAND SLIPPED INTO THE PROPELLER OF HIS BOAT RESULTING IN A LOST THUMB THE NEXT YEAR A FISHER NAMED BLAKE ROBERTSON PULLED A 6 1/2 POUND TROUT FROM THOSE CHILLY WATERS OPENED HIM UP AND FOUND MR LINDSEY'S MISSING DIGIT INSIDE THIS TELLS MANY OF US ALL WE NEED TO KNOW ABOUT THESE PERFECT BEINGS MR RAINES HAS NO EARS FOR SUCH STORIES BUT LIKE MOST MEMBERS OF THE TROUT CULT HE IS STRANGELY FOND OF PULLING IRON HOOKS THROUGH THE FISHES' LIPS AND REELING THEM SKYWARD IF HIS BOOK IS TO BE BELIEVED HE'S A PRETTY GOOD ANGLER AND WHEN HE STICKS TO FISHING MR RAINES IS A REAL JOY HERE HE RECALLS A YOUTHFUL ENCOUNTER WITH A VIGOROUS CRAPPIE FISHERMAN WITH A MIGHTY HEAVE HE LIFTED A LARGE CRAPPIE INTO THE AIR HELD AT THE UTMOST END OF THE LINE BY CENTRIFUGAL FORCE THIS FISH DESCRIBED AN ARC THAT CARRIED IT THIRTY FEET IN THE AIR THE MAN NEVER STOPPED ACCELERATING THE POLE UNTIL IT EXTENDED BEHIND HIM IN THE FOREST AND WE COULD HEAR THE FISH FLOPPING IN THE LEAVES FAR BACK IN THE WOODS HE DASHED INTO THE TREES AND FELL UPON IT GOLDEN WORDS YET AFTER MR RAINES GOT FISH RELIGION HE FOUND HIMSELF ACTUALLY TRAUMATIZED BY HIS EARLIER CRAPPIE ENCOUNTERS ONE CAN SEE THE HALO APPEARING ABOVE MR RAINES'S HEAD AS HE MOURNS HOW HE KILLED HUNDREDS OF FISH BASS CRAPPIES BLUEGILLS SHELLCRACKERS PIKE KING MACKERELS RED SNAPPERS BLACK SNAPPERS REDFISH BLUEFISH POMPANOS AMBERJACKS JACK CREVALLES BARRACUDAS I HAD BEEN BLOODED IN THE REDNECK WAY BY THOSE WHO UNDERSTOOD FISHING AS A SPORT AND A COMPETITION NOW I WAS ABOUT TO MEET A MAN WHO UNDERSTOOD IT AS AN ART A PASTIME A WAY OF LIVING EASEFULLY IN THE WORLD OF NATURE HERE WE ENCOUNTER ONE OF THE BOOK'S MORE UNPLEASANT ASPECTS MR RAINES SELDOM ALLOWS HIS VIRTUES TO SWIM BY UNMENTIONED PREFERRING TO LAND THEM AND MOUNT THEM ABOVE HIS MANTLE FOR ALL TO SEE BESIDES THAT HE CAN BE A TERRIBLE NAG THOUGH THIS IS ALSO A BOOK ABOUT THE AUTHOR'S MIDLIFE CRISIS BELLYUP MARRIAGE INTIMATIONS OF MORTALITY ETC ITS MOST STRIKING FEATURE IS THE AUTHOR'S INCESSANT FINGERSHAKING WHO BUT AN OBSESSED MAN WOULD THINK OF REAGAN AT A TIME LIKE THIS IN FACT THE GHOST OF RON REAPPEARS THEN ONE DAY IN THE SUMMER OF 1981 I FOUND MYSELF AT THE LL BEAN STORE IN FREEPORT MAINE I WAS A CORRESPONDENT AT THE WHITE HOUSE IN THOSE DAYS AND MY WORK WHICH CONSISTED OF REPORTING ON PRESIDENT REAGAN'S SUCCESS IN MAKING LIFE HARDER FOR CITIZENS WHO WERE NOT BORN RICH WHITE AND HEALTHY SADDENED ME IN FACT HANGING AROUND THE REAGAN CROWD MADE ME YEARN FOR CONNECTION WITH SOMETHING NOBLE AND UPLIFTING I BOUGHT A FLY ROD THE SAINTLY MR RAINES HAD FOUND A PERFECT COMPANION BESIDES HERALDING HIS SENSITIVITY TOWARD FISH AND HIS SUPERIORITY OVER REPUBLICANS MR RAINES FIRES HIS HARPOON AT OTHER VILLAINS INCLUDING ERNEST HEMINGWAY BEHOLD A MINNOW ATTACKS A WHALE GIVEN HIS SEXIST FATALISTIC WORLDVIEW HEMINGWAY NEVER FIGURED OUT THAT THE PRESENCE HE CALLED AN OLD WHORE' WAS IN FACT SKELETON WOMAN THE NATIVE AMERICAN FIGURE WHOSE DEATH AND REBIRTH SIGNIFIED THE WAY IN WHICH DEATH IS BRAIDED INEXTRICABLY IN THE PROCESS OF LIVING KICKING ERNEST MAY KEEP THEM COOING AT THE TIMES BUT MANY FISHERS WILL FIND THIS SORT OF THING A BIT PRECIOUS NOR ARE WE CONVINCED THAT MR RAINES IS CORRECT IN SAYING THAT HETEROSEXUAL MALES ARE CONFUSED ABOUT WHY THEY WANT TO GO OFF BY THEMSELVES AND PLAY THERE'S NO CONFUSION HERE MOST ARE HOPING TO ESCAPE THE WORLD'S NAGS WHICH IS WHY WE'LL READ MR RAINES IN THE WINTER BUT FLEE HIM COME SPRING MR SHIFLETT IS DEPUTY EDITORIAL PAGE EDITOR OF THE ROCKY MOUNTAIN NEWS 9312310005 931231 SMALL STOCK FOCUS STOCKS HOLD STEADY IN LACKLUSTER SESSION AS LOWER BOND PRICES DAMAGE CYCLICALS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SHARPLY LOWER BOND PRICES MAY HAVE CAUSED DAMAGE AMONG LARGE CYCLICAL STOCKS BUT SMALLCOMPANY STOCKS HELD UP REMARKABLY WELL IN A LACKLUSTER SESSION THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION ISSUES TRADED ON THE NASDAQ STOCK MARKET AND OTHER EXCHANGES HAD BEEN FRACTIONALLY LOWER ALL YESTERDAY BUT EDGED UP NEAR THE CLOSE THE BAROMETER GAINED 017 POINT OR 007 TO 25619 TRADERS SAID SMALL ISSUES FIRMED ON LIGHT VOLUME BECAUSE THERE WERE FEW SELLERS SOME NETWORKING ISSUES DREW BUYING IN LATE TRADING FOR INSTANCE PHYSICIAN COMPUTER NETWORK LAURENCE HARBOR NJ GAINED 5/8 TO 4 1/2 AND ASANTE TECHNOLOGIES A SAN JOSE CALIF DATA NETWORKING PRODUCTS DESIGNER ADVANCED 1 3/4 TO 11 3/4 BUT CROSSCOMM A MARLBOROUGH MASS INTERNETWORKING COMPANY SLID 2 1/4 TO 21 1/2 NUTMEG SECURITIES ANALYST ANDY SCHOPICK SAID INVESTORS HAVE COME TO REALIZE THAT THE COMPANY'S GROWTH RATE ISN'T ACCELERATING AT THE SAME PACE AS ITS COMPETITORS SOME OTHER TECH STOCKS ALSO SHOWED BIG LOSSES YESTERDAY SUPERMAC TECHNOLOGY DROPPED 1 3/4 TO 10 1/4 THE SUNNYVALE CALIF COLOR GRAPHICS SYSTEMS SUPPLIER SAID IT WILL TAKE A ONETIME CHARGE IN THE FOURTH QUARTER THAT IT ESTIMATES WON'T EXCEED 3 MILLION THE CHARGE WILL INCLUDE EXPENSES RELATED TO CLOSING ITS SMALL OREGON DEVELOPMENT FACILITY SEVERANCE PAYMENTS ASSOCIATED WITH REDUCING ITS WORK FORCE BY UP TO 15 AND OTHER EXPENSES BUT SUPERMAC SAID IT EXPECTS TO REPORT RECORD FISCAL YEAR REVENUES AND EARNINGS BEFORE THE ONETIME CHARGE FOR THE YEAR IN THE YEAREARLIER QUARTER THE COMPANY EARNED 23 CENTS A SHARE ROSS SYSTEMS PLUNGED 1 5/8 TO 6 1/8 THE REDWOOD CITY CALIF SOFTWARE COMPANY SAID IT EXPECTS FISCAL SECONDQUARTER EARNINGS TO FALL BELOW ANALYSTS' PROJECTIONS OF ABOUT 18 CENTS A SHARE COMPARED WITH NET INCOME OF 15 CENTS A YEAR EARLIER FOR THE EXPECTED SHORTFALL THE COMPANY CITED DELAYS IN CLOSING SOFTWARE LICENSE CONTRACTS IN ITS CURRENT QUARTER AMONG SMALLER BANK FINANCIAL AND INSURANCE STOCKS FIRST FINANCIAL HOLDINGS OF CHARLESTON SC MOVED 1 3/4 HIGHER TO 17 3/4 FIDELITY NATIONAL FINANCIAL IRVINE CALIF ADDED 1 3/8 TO 26 1/8 AND INTERCONTINENTAL BANK ROSE 1/2 TO 20 ELSEWHERE CAMPO ELECTRONICS APPLIANCES AND COMPUTERS GAINED 1 7/8 TO 16 5/8 THE HARAHAN LA RETAILER SAID PRELIMINARY NET INCOME FOR ITS FISCAL FIRST QUARTER WAS ABOUT 1 MILLION OR 25 CENTS A SHARE COMPARED WITH PROFORMA RESULTS OF 173000 OR SEVEN CENTS A SHARE A YEAR AGO THE COMPANY SAID FINAL FIGURES ARE EXPECTED THE WEEK OF JAN 10 NEWS LATE WEDNESDAY THAT THE STATE GAMING COMMISSION IN MISSISSIPPI WILL EXAMINE IN DETAIL ALLEGATIONS AGAINST A LADY LUCK GAMING CASINO IN TUNICA COUNTY BROUGHT THE LAS VEGAS COMPANY'S STOCK DOWN 1 1/4 TO 9 1/2 AS REPORTED THE COMMISSION AGREED TO LOOK INTO ALLEGATIONS THAT THE CASINO VIOLATED RULES IN THE OPERATIONS OF ITS GAMES AND IN SURVEILLANCE OF A CASHIER'S CAGE IMPROVED FISCAL FIRSTQUARTER EARNINGS LIFTED ARROW INTERNATIONAL 1 1/2 TO 22 1/2 THE READING PA MAKER OF CATHETERS SAID NET INCOME FOR THE PERIOD ROSE TO 27 CENTS A SHARE FROM 22 CENTS A YEAR EARLIER AN INITIAL BUY RATING FROM JANNEY MONTGOMERY SCOTT PUSHED LIBERTY TECHNOLOGIES UP 1 1/8 TO 9 1/4 ANALYST DAVID SCHANZER SAID HE EXPECTS THE CONSHOHOCKEN PA DEVELOPER OF DIAGNOSTIC SYSTEMS FOR NUCLEARPOWER PLANTS TO EARN 55 CENTS A SHARE THIS YEAR AND 66 CENTS IN 1994 FOR 1992 LIBERTY POSTED NET INCOME OF 35 CENTS A SHARE ON THE BIG BOARD SPORT SUPPLY GROUP FARMERS BRANCH TEXAS ROCKETED UP 2 1/4 TO 20 1/8 AFTER ANNOUNCING THAT ITS GOLF EAGLE DIVISION HAS BEEN SELECTED AS A SUPPLIER TO WALMART STORES FOR A NUMBER OF ITS GOLFACCESSORY PRODUCTS ALSO SPORT SUPPLY SAID ITS RECENTLY ACQUIRED MARVAL GOLF BALL RECYCLING OPERATION IS NOW EXPANDING AT AN ACCELERATED PACE A COMPANY SPOKESMAN SAID THE IMPACT ON 1994 RESULTS WILL BE VERY POSITIVE BUT WOULDN'T ELABORATE NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 102 WHILE 28 HIT NEW LOWS 9312310003 931231 FROM A CASTLE EUROPE PONDERS A TIRED FUTURE BY DAVID BROOKS DITCHLEY PARK OXFORDSHIRE ENGLAND IF THESE OLD WALLS COULD TALK HOW PORTENTOUS THEY WOULD BE DITCHLEY IS A BEAUTIFUL 18THCENTURY MANOR HOUSE ABOUT AN HOUR WEST OF LONDON THAT NOW HOSTS BRITAIN'S PREMIER CONFERENCE SERIES THE LOVELY OLD PILE WELCOMES DOZENS OF EMINENT THINKERS ON AN ALMOST BIWEEKLY BASIS ABSORBS THE ECHOES OF COUNTLESS WORDS WISE AND GRAVE AND SO STANDS AS WITNESS TO MAN'S ABILITY TO REASON AND DECLAIM THOUGH NOT NECESSARILY IN THAT ORDER ANYONE WHO WANTS TO GET A VIEW OF WHAT THE GREAT AND THE GOOD THINK OF EUROPEAN UNION COULD DO WORSE THAN TO CONSIDER THE TALK AT THE DITCHLEY CONFERENCE THAT TOOK PLACE ON THE SUBJECT EARLIER THIS MONTH DITCHLEY RULES ALLOW ATTENDEES TO REPORT WHAT WAS SAID AT THE CONFERENCE BUT NOT TO REPORT WHO SAID IT SUFFICE IT TO SAY THAT THE CONFERENCE WAS ATTENDED BY MANY SENIOR CIVIL SERVANTS WHO WORK ON EUROPEAN ISSUES A FEW PARLIAMENTARIANS AND A FORMER PRIME MINISTER FROM A CONTINENTAL NATION AS WELL AS A SPRINKLING OF TRANSATLANTIC AMBASSADORS ACADEMICS AND AT THE RISK OF LOSING SOME OF THE SILVERWARE A COUPLE OF JOURNALISTS ON THE EUROCONTINUUM THAT GOES EUROPHOBEEUROSKEPTICEUROPHILEEUROFANATIC IT'S FAIR TO SAY THE CONFERENCE WAS 80 EUROPHILE WITH A FEW EUROFANATICS COMPARED WITH A SIMILAR DITCHLEY CONFERENCE THAT WAS HELD NEARLY TWO YEARS AGO JUST AFTER THE SIGNING OF THE MAASTRICHT TREATY THE TONE THIS TIME WAS SUBDUED EVEN WEARY THERE WAS LITTLE ENTHUSIASM FOR RESHAKING THE INSTITUTIONAL FOUNDATIONS DURING THE NEXT ROUND OF EUROPEAN CONSTITUTIONWRITING DUE TO HAPPEN IN 1996 MANY PEOPLE FELT THAT A FUNDAMENTAL REVALUATION IN THE CURRENT CLIMATE WAS MORE LIKELY TO LEAD TO REGRESSION AWAY FROM UNION RATHER THAN FURTHER PROGRESS TOWARD IT YET THERE WAS LITTLE FAITH THAT THE MAASTRICHT TREATY OFFERED THE RIGHT WAY FORWARD IT WAS SAID THAT MAASTRICHT REPRESENTED THE LAST INSTITUTIONAL GASP OF COLD WAR THINKING ANOTHER SENIOR FIGURE REITERATED THAT MAASTRICHT IS A MESS THOSE WHO HELPED WRITE THE TREATY SEEMED TO FEEL BELEAGUERED THAT IS NOT TO SAY THE GROUP SHOWED ANY SIGN OF TURNING AWAY FROM THE EUROPEAN PROJECT THE MOST COMMON VIEW SEEMED TO BE THAT THE CONSTRUCTION OF A POLITICALLY UNITED EUROPE WOULD SIMPLY TAKE LONGER THAN EXPECTED AND THAT NATIONS WOULD ADVANCE AT A MORE VARIABLE RATE LAST YEAR'S MONETARY TURMOIL WOULD SIMPLY MAKE IT MORE LIKELY THAT CORE NATIONS WOULD ARRIVE AT MONETARY UNION BEFORE OUTLYING NATIONS MANY PEOPLE BUT NOT ALL ASSUMED THAT MONETARY UNION WOULD NECESSITATE POLITICAL UNION SOME WHISPERED THAT A UNITED STATES OF EUROPE WOULD BE ACHIEVED IN 15 YEARS OTHERS SAID 50 GENERALLY PARLIAMENTARIANS DOUBTED THAT MUCH PROGRESS COULD BE MADE SOON AND CIVIL SERVANTS WERE MOST LIKELY TO BELIEVE THAT A FEDERAL STATE WAS POSSIBLE QUICKLY THE POLITICIANS TENDED TO HAVE MORE DIVERSE VISIONS OF EUROPE ONE WANTED A EUROPE THAT WAS ORGANIZED BY TASKS ANOTHER SUGGESTED THAT EUROPE SHOULD CHOOSE A FEW ISSUES THAT IT CAN HANDLE WELLIMMIGRATION AND WELFARE REFORM IN THE VIEW OF THIS PERSON AND THEN ESCHEW RESPONSIBILITY FOR ALL OTHER POLICY AREAS MANY PEOPLE USED THE WORD FLEXIBILITY AND EXCLAIMED THAT IT WAS GOOD THOUGH THERE WERE FEW CONCRETE IDEAS ON HOW TO ACHIEVE IT NOR DID THE ATTENDEES MAKE MUCH PROGRESS ON HOW TO RESOLVE THE DEMOCRACY DEFICIT THE EUROPEAN PARLIAMENT SEEMS CAUGHT IN A CATCH22 GIVING IT A SERIOUS ROLE WOULD SEEM ON THE FACE OF IT A STEP TOWARD GREATER DEMOCRACY BUT THE PARLIAMENT LOBBIES FOR CENTRALIZING POWER IN BRUSSELS SO GIVING IT GREATER AUTHORITY MIGHT HEIGHTEN EUROPHOBIA PEOPLE WERE PRETTY HAPPY WITH THE WAY THE EUROPEAN COMMUNITY COMMISSION HAS HANDLED THE GENERAL AGREEMENT ON TARIFFS AND TRADE BUT THERE WAS ALSO APPROPRIATE BREASTBEATING OVER THE EC'S UNWILLINGNESS TO OPEN TRADE TO THE EAST THE AMERICANS ESPECIALLY ARGUED THAT MONETARY UNION AND INSTITUTIONAL REFORM WERE SIDESHOWS MANY YANKS ARE BAFFLED THAT EUROPEANS HAVE NOT HAD THEIR IMAGINATIONS SPARKED BY THIS GREAT IDEALISTIC ENTERPRISE THE INTEGRATION OF THEIR DIVIDED CONTINENT ONE OF THE TOPICS THAT WENT ALMOST COMPLETELY IGNORED AT THE CONFERENCE WAS THE SUBJECT OF TRANSPARENCY OF BRINGING VOTERS INTO THE PROCESS OF POLICY MAKING THERE WERE RITUAL ANNOUNCEMENTS THAT THE ELITES SHOULD NOT GET TOO FAR OUT IN FRONT OF THE GENERAL PUBLIC BUT THERE WAS LITTLE ANALYSIS OF THE NATURE OF PUBLIC HOSTILITY NOR WAS THERE DISCUSSION OF THE WAY THE REVOLUTION IN INFORMATION TECHNOLOGY MAY PRESSURE EC INSTITUTIONS WHEN THERE ARE A FEW HUNDRED TELEVISION STATIONS WITH INTERACTIVE POSSIBILITIES THEN THE GENERAL PUBLIC BECOMES INVOLVED IN EVEN THE TECHNICAL ARCANA OF POLITICS MUCH AS WE SAW IN THE US WHEN RUSH LIMBAUGH MOBILIZED MILLIONS OF VOTERS TO LOBBY OVER A CONGRESSIONAL PROCEDURE CALLED THE DISCHARGE PETITION PEOPLE WILL BE ABLE TO PLUG INTO COMPUTER BULLETIN BOARDS TO EXCHANGE INFORMATION ABOUT THE EC AND TO DEMAND ACCESS TO COMMISSION RESOURCES THE EC WHICH IS NOW THE OPPOSITE OF TELEGENIC WILL HAVE TO BE INTERACTIVE RATHER THAN JUST A BLACK BOX ISSUING POLICIES ONE OF THE PROBLEMS IS THAT EC PRACTITIONERS HAVE BECOME INSTITUTIONAL ARCHITECTS WHILE THERE WAS CERTAINLY AN APPRECIATION OF THE IMPORTANCE OF PUBLIC OPINION AT THE DITCHLEY CONFERENCE DISCUSSION GREW ANIMATED AS PEOPLE DEBATED THE INTRICACIES OF INSTITUTION BUILDING THERE WAS AN UNSTATED VIEW THAT PROBLEMS COULD BE SOLVED BY BETTER ARCHITECTURAL TINKERING THE PRACTITIONERS HAVE BEEN INVOLVED IN A DECADESLONG CONVERSATION ABOUT EUROPEAN UNION THIS CONVERSATION WHAT THE FRENCH SOCIOLOGIST PIERRE BOURDIEU CALLS A FIELD HAS DEVELOPED ITS OWN PARAMETERS AND ASSUMPTIONS THIS IS INEVITABLE BUT PROBLEMS ARISE WHEN PEOPLE BECOME INSTINCTIVELY DISMISSIVE OF IDEAS THAT HAVEN'T BEEN CONSECRATED WITHIN THE CONVERSATION OR WHEN PEOPLE WITHIN THE CONVERSATION FIND IT DIFFICULT TO COMMUNICATE WITH THOSE OUTSIDE IN ANY CASE DITCHLEY CONFERENCES ALWAYS RUN THE RISK OF BEING OVERSHADOWED BY THE MAGNIFICENT SETTING GREAT HOUSE NO PHONES OR TVS IN THE ROOMS A WIDE EXPANSE OF BEAUTIFUL COUNTRYSIDE IN SUCH SURROUNDINGS ONE CAN BE FORGIVEN FOR THINKING IN 19THCENTURY HIGH POLITICS TERMS A UTILITARIAN CASE COULD BE MADE FOR HOLDING FUTURE EC CONFERENCES IN 21STCENTURY SURROUNDINGS WITH TV CAMERAS EVERYWHERE COMPUTER MESSAGES FLASHING IN A GLASS CHAMBER IN THE MIDDLE OF SOME TOWN SQUARE PERISH THE THOUGHT MR BROOKS IS DEPUTY EDITORIAL PAGE EDITOR OF THE WALL STREET JOURNAL EUROPE 9312310130 931110 TEXAS JOURNAL ECONOMIC FOCUS SAN ANTONIO VS AUSTIN WHICH HAS THE STAMINA BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN AND SAN ANTONIO SAN ANTONIO AND AUSTIN THESE DAYS YOU RARELY HEAR ONE MENTIONED WITHOUT THE OTHER AND IT ISN'T SURPRISING FOR MORE THAN A YEAR NOW THEY'VE BEEN THE TWIN SUPERNOVAS OF THE TEXAS ECONOMY WHILE STATEWIDE JOB GROWTH REMAINS STUCK AT AROUND 2 A YEAR SAN ANTONIO AND AUSTIN ARE BLAZING AWAY AT WELL OVER 3 EACH NEW HOUSING PERMITS ARE RISING AT DOUBLE THE STATE'S AVERAGE IN EACH CITY AND LOCAL BUSINESS OPTIMISM IS OFF THE CHARTS BUT THERE'S MORE TO THIS TALE OF TWO CITIES THAN MEETS THE EYE ALTHOUGH THEY'RE JUST 80 MILES APART A WORLD OF DIFFERENCE SEPARATES THEIR ECONOMIES WITH AUSTIN BANKING ON HIGHTECH MANUFACTURING AND SAN ANTONIO CONCENTRATING ON SERVICES AND TRADE WHICH IS BETTER ECONOMISTS SAY AUSTIN PROBABLY HAS THE BEST LONGTERM PROSPECTS ALTHOUGH THEY GIVE SAN ANTONIO HIGH MARKS FOR EFFORT IT'S HARD TO SEE WHY AUSTIN WON'T LEAD THE STATE IN GROWTH OVER THE LONG HAUL SAYS JARED HAZLETON DIRECTOR OF THE CENTER FOR BUSINESS AND ECONOMIC ANALYSIS AT TEXAS A&M UNI VERSITY SAN ANTONIO IS STILL SEARCHING FOR THE RIGHT MODEL FOR GROWTH WHILE AUSTIN ALREADY FOUND IT AUSTIN HAS MORE ADVANTAGES TO BEGIN WITH HOME TO THE STATE'S BIGGEST UNIVERSITY AS WELL AS THE SEAT OF TEXAS GOVERNMENT AUSTIN STARTS OFF WITH A STRONG ECONOMIC FOUNDATION ACCORDING TO THE COMPTROLLER'S OFFICE AUSTIN HAD BY FAR THE STATE'S HIGHEST PERCAPITA STATE AND FEDERALGOVERNMENT EXPENDITURES LAST YEAR 8769 THAT COMPARES WITH 6576 FOR SAN ANTONIO AND 5404 FOR THE ENTIRE STATE AUSTIN ALSO BOASTS A BETTEREDUCATED WORK FORCE ABOUT 84 OF WORKERS HAD AT LEAST A HIGHSCHOOL DIPLOMA IN 1990 WHILE SAN ANTONIO MATCHED THE STATEWIDE AVERAGE OF 78 BUT THE BIGGEST DIFFERENCE COMES FROM WHAT AUSTIN'S WORK FORCE IS DOING ROUGHLY 13 OF THE CITY'S JOBS ARE IN MANUFACTURING THAT COMPARES WITH 81 FOR SAN ANTONIO SO WHAT FOR ONE THING MANUFACTURING TRADITIONALLY PAYS BETTER THAN OTHER SECTORS IN TEXAS THE AVERAGE MANUFACTURING WAGE IS 1111 AN HOUR WHILE WORKERS IN SAY RETAIL TRADE AVERAGE JUST 670 AN HOUR THAT'S A MAJOR REASON WHY AUSTIN'S WEEKLY WAGES ARE 46990 NEARLY 20 HIGHER THAN SAN ANTONIO'S 39428 WHAT'S MORE AUSTIN'S CONCENTRATION ON HIGH TECH HAS GIVEN IT CRITICAL MASS IN ONE OF THE HIGHESTGROWTH SEGMENTS OF THE US ECONOMY A WHO'S WHO OF TECHNOLOGY GIANTS HAVE ESTABLISHED BIG FACILITIES IN AUSTIN RANGING FROM FOUR MOTOROLA INC MICROCHIP PLANTS TO THE HEADQUARTERS OF INTERNATIONAL BUSINESS MACHINES CORP'S WORKSTATION BUSINESS THESE FACILITIES ARE HELPING AUSTIN IN TWO WAYS NOT ONLY ARE MANY ESTABLISHED COMPANIES FUELING A LOCAL CONSTRUCTION BOOM WITH BIG CAPITALIMPROVEMENT PROJECTS BUT THEY ALSO HAVE ENCOURAGED SCORES OF NEW BUSINESSES TO FORM IN THEIR SHADOWS INDEED GREATER AUSTIN SPAWNED 11 196 NEW BUSINESSES LAST YEAR VS 13588 FOR GREATER SAN ANTONIO WHICH HAS ROUGHLY TWICE THE POPULATION THAT SUGGESTS THAT AUSTIN'S ANNUAL JOB GROWTH MAY ACTUALLY BE HIGHER THAN THE OFFICIAL 37 BECAUSE GOVERNMENT SURVEYS OFTEN MISS NEW BUSINESSES ALL OF THIS ISN'T TO SAY THAT SAN ANTONIO IS A SLUG ONCE CONSIDERED A BACKWATER THE ALAMO CITY HAS TRANSFORMED ITSELF INTO A MAJOR TOURIST DESTINATION IT HAS ALSO BEEN WORKING HARD TO CAPITALIZE ON ITS CULTURAL TIES WITH MEXICO OVER HALF ITS POPULATION IS HISPANIC AND ITS POSITION ASTRIDE THE MAIN TRADING ROUTE TO THE BORDER ABOUT A THIRD OF THE 33 OUTOFSTATE COMPANIES THAT HAVE RELOCATED OPERATIONS TO SAN ANTONIO IN THE PAST THREE YEARS HAVE SOME LINK TO THE MEXICAN MARKET INCLUDING GIANT SOUTH WESTERN BELL CORP WHICH MOVED ITS HEADQUARTERS FROM ST LOUIS LAST YEAR FINALLY USING ITS BILINGUAL WORK FORCE AND LOW WAGE BASE AS A DRAWING CARD SAN ANTONIO HAS TURNED ITSELF INTO A MAJOR TELEMARKETING CENTER LURING SUCH OPERATIONS AS WORLD SAVINGS & LOAN ASSOCIATION'S CUSTOMERSERVICE CENTER AND A MAJOR QVC NETWORK INC ORDERTAKING CENTER THE CITY HAS INCREASED TELEMARKETING EMPLOYMENT BY ABOUT 27 IN THE PAST THREE YEARS AND EVEN THOUGH FEW EMPLOYEES ARE GETTING RICH FROM THEM THE JOBS DON'T PAY AS POORLY AS MANY MIGHT THINK JIM SEIGLER CORPORATE TELEMARKETING DIRECTOR OF UNIFIRST CORP A BOSTON COMPANY THAT MANUFACTURES AND RENTS UNIFORMS SAYS HIS 43 EMPLOYEES IN SAN ANTONIO MAKE 18200 A YEAR IF THEY MEET THEIR QUOTAS AND THREE HAVE ALREADY SURPASSED 30000 THIS YEAR 9312310127 931123 TRACKING TRAVEL BY DANIEL PEARL LEAVING TOWN EARLY TO BEAT THE THANKSGIVING RUSH COULD BACKFIRE THIS YEAR SO MANY PEOPLE TAKE AN EXTRA DAY OFF THAT TUESDAY HAS SUPPLANTED WEDNESDAY AS THE BUSIEST DAY FOR THANKSGIVING AIRPORT DEPARTURES ACCORDING TO THE AIR TRANSPORT ASSOCIATION THE TRADE GROUP PROJECTS PLANES WILL BE 655 FULL TODAY COMPARED WITH 608 TOMORROW AND 456 ON THANKSGIVING DAY THE PATTERN IS SIMILAR TO LAST YEAR'S BUT CONTRASTS WITH 1990 AND 1991 WHEN WEDNESDAY WAS THE BUSIEST DAY AMTRAK SAYS TRAIN PASSENGERS ARE ALSO SHIFTING TOWARD TUESDAY TRAVEL IN ADDITION TO AVOIDING CROWDS MANY PEOPLE ARE TAKING EXTRA DAYS OFF WORK SO THEY CAN GO ON CRUISES OR FLORIDA VACATIONS IT'S NOT JUST TRAVEL FOR A TRADITIONAL THANKSGIVING BUT TRAVEL FOR TRAVEL'S SAKE SAYS JERRY CHESKEY A SPOKESMAN FOR THE AMERICAN AUTOMOBILE ASSOCIATION THE GROUP'S POLLS SHOW JUST 52 OF AMERICANS TRAVELING OUT OF TOWN PLAN TO STAY WITH A FRIEND OR RELATIVE THIS THANKSGIVING DOWN FROM 66 LAST YEAR ALSO AIRLINES AND AMTRAK ENCOURAGE EARLY TRAVEL BY OFFERING DISCOUNT FARES FOR TRAVEL TODAY BUT BLACKING OUT TOMORROW SOME AIRLINES DOUBT THAT TODAY WILL REALLY BE AS BUSY AS TOMORROW BUT TWA SAYS IT HAS NOTICED THE SHIFT AND MAY EXTEND BLACKOUTS TO TUESDAY ALREADY THE AIRLINE EXCLUDES TUESDAY FROM ONE 50OFF COUPON DEAL AND IT EXCLUDED THE ENTIRE WEEK PLUS THE FOLLOWING MONDAY AND TUESDAY FROM ITS RECENT TWOFORONE PROMOTION MORNINGS BOTH TODAY AND TOMORROW SHOULD BE LESS BUSY THAN EVENINGS A STORMY DISPUTE BETWEEN AIR TRAFFIC CONTROLLERS AND THEIR MANAGERS COULD PRODUCE LONGER WEATHERRELATED FLIGHT DELAYS AT ISSUE IS A JULY 10 UNITED AIRLINES FLIGHT THAT HAD ALREADY TAKEN OFF FROM CHICAGO'S O'HARE INTERNATIONAL AIRPORT BOUND FOR LOUISVILLE KY A CONTROLLER ORDERED THE PLANE BACK TO O'HARE WHEN THE PILOT DECLINED TO FLY NEAR THUNDER CLOUDS SOUTH OF CHICAGO AND TRIED TO SKIRT THE CLOUDS BY HEADING EAST UNITED COMPLAINED TO THE FEDERAL AVIATION ADMINISTRATION SAYING ONLY PILOTS SHOULD DECIDE WHETHER TO FLY THROUGH STORMS THE FAA APOLOGIZED FOR THE SHOCKING INCIDENT AND SUSPENDED THE CONTROLLER FOR THREE DAYS WITHOUT PAY SAYING HE SHOULD HAVE GIVEN THE PILOT ANOTHER OPTION BUT THE CONTROLLER SAID TURNING THE UNITED PLANE SOUTH AFTER IT HAD FLOWN SO FAR OFF COURSE WOULD HAVE PUT IT TOO CLOSE TO OTHER PLANES OR DIVERTED THE CONTROLLER'S ATTENTION FROM OTHER FLIGHTS EARLIER THIS MONTH THE AIRTRAFFIC CONTROLLERS UNION SAID CONTROLLERS WILL SLOW FLIGHTS AT O'HARE TO A TRICKLE DURING STORMS TO AVOID GETTING CAUGHT IN THE SAME SITUATION INDEED THE NATIONAL AIR TRAFFIC CONTROLLERS ASSOCIATION SAID THAT CAUTION LED TO EXTRA DELAYS AT O'HARE NOV 5 AND NOV 6 WHEN FLIGHTS WERE HELD UP FOR AS LONG AS AN HOUR DURING A SLIGHT RAINSTORM THE ASSOCIATION WANTS THE FAA TO COME UP WITH PROCEDURES FOR ROUTING PLANES THAT TURN DOWN A CONTROLLER'S INSTRUCTIONS IN STORMY WEATHER WE DON'T HAVE GUIDANCE ON WHAT TO DO WHEN THE PILOT SAYS NO SAYS JEFF STEWART A UNION REPRESENTATIVE BUT THE FAA SAYS ITS PROCEDURES ARE ADEQUATE BILL JEFFERS THE AGENCY'S SECONDRANKING AIR TRAFFIC OFFICIAL SAYS NOTHING PREVENTS A CONTROLLER FROM HAVING A PILOT CIRCLE ABOVE THE AIRPORT UNTIL A PATH CLEARS UP AROUND THE STORMS WITH MANY STATES LOWERING THEIR RESISTANCE A PLAN TO CONVERT HIGHWAY SIGNS TO THE METRIC SYSTEM IS INCHING FORWARD FOR DECADES OUTCRIES FROM MOTORISTS AND STATE OFFICIALS HAVE SQUELCHED EFFORTS TO SWITCH FROM MILES TO KILOMETERS THIS MONTH HOWEVER THE FEDERAL HIGHWAY ADMINISTRATION IS REVIEWING A NEW BATCH OF COMMENTS ON A PROPOSED SWITCH AND ONLY A FEW STATES SAY THEY'RE OPPOSED TO METRIC MOREOVER MOST STATES SAY A FAST CONVERSION WOULD BE BETTER THAN REPLACING MILEAGE SIGNS AS THEY WEAR OUT TOO CONFUSING OR POSTING SIGNS WITH BOTH MILES AND KILOMETERS FOR A FEW YEARS TOO EXPENSIVE WE'RE A BIT SURPRISED TO FIND THE STATES AS FORTHCOMING AND RESPONSIVE AS THEY'VE BEEN RODNEY SLATER FEDERAL HIGHWAY ADMINISTRATOR SAYS HIS AGENCY MAY REQUIRE KILOMETER SIGNS AS SOON AS 1996 TO SATISFY A FIVEYEAROLD LAW REQUIRING USE OF THE METRIC SYSTEM BY ANYONE RECEIVING FEDERAL FUNDS I WOULD SAY IT'S NEVER BEEN CLOSER SAYS AMY STEINER OF THE AMERICAN ASSOCIATION OF STATE HIGHWAY AND TRANSPORTATION OFFICIALS HELPING SWAY STATE OFFICIALS IS INCREASED TRADE WITH CANADA AND MEXICO AND THE FACT THAT STATES ARE CHANGING THEIR HIGHWAY PAPERWORK TO THE METRIC SYSTEM ANYHOW BUT MANY STATES ARE STILL WARY CONVERSION COULD COST HUNDREDS OF MILLIONS OF DOLLARS AND CONGRESS WON'T LET STATES SPEND FEDERAL MONEY ON IT THIS YEAR SOME STATES LIKE PENNSYLVANIA FEAR THEY'LL HAVE TO CANCEL SOME ROADWORK TO GO METRIC ALSO STATES WORRY THE FEDERAL GOVERNMENT WON'T HELP THEM PREPARE MOTORISTS FOR THE CHANGE SOME DRIVERS COULD FIND A SILVER LINING IN THE METRIC CONVERSION THE ASSOCIATION OF STATE TRANSPORTATION OFFICIALS HAS RECOMMENDED ROUNDING UP THE METRIC NUMBERS TO MAKE THE TOP HIGHWAY SPEED 110 KILOMETERS OR 682 MILES AN HOUR THE TRANSPORTATION DEPARTMENT WANTS TO HALVE ITS 18PERSON CONSUMER AFFAIRS STAFF WHICH FIELDS COMPLAINTS FROM TRAVELERS ABOUT FLIGHT DELAYS LOST BAGGAGE AND THE LIKE THE GOVERNMENT'S REASONING THERE WERE ONLY 8000 COMPLAINTS LAST YEAR COMPARED WITH 40000 IN 1987 STRIKING FLIGHT ATTENDANTS DIDN'T SHUT DOWN AMERICAN AIRLINES BUT THEY NEARLY SHUT DOWN FSB FAX TRANSMISSION A SAN FRANCISCO SELLER OF FAX SYSTEMS ITS LINES WERE JAMMED WITH WRONGNUMBER FAXES INTENDED FOR THE WHITE HOUSE SEE RELATED LETTER LETTERS TO THE EDITOR THE METRIC SYSTEM PERVASIVE IN AMERICA WSJ DEC 31 1993 9311230002 YY93 MM12 9312310126 931110 TEXAS JOURNAL LETTERS TO THE EDITOR REGARDING THE NOV 3 ARTICLE HOW CAN DOWNTOWN DALLAS BE SAVED THE SHORT ANSWER IT CAN'T IT'S TOO LATE DALLAS LEADERS AND OTHERS HAVE OVER THE YEARS MADE A SERIES OF DECISIONS THAT HAVE EFFECTIVELY DOOMED DOWNTOWN DALLAS A PARTIAL LIST OF SUCH FACTORS CITY FATHERS SHOULD DO DALLAS TAXPAYERS A FAVOR STOP WASTING TAXPAYERS' MONEY TO TRY AND SALVAGE SOMETHING THAT CAN'T BE SALVAGED THE TRUTH IS THAT DOWNTOWN DALLAS IS IN THE MIDST OF A RENAISSANCE CURRENTLY THE CITY IS COMPLETING THE CONVENTION CENTER EXPANSION AND THE MAIN STREET RENOVATION DALLAS AREA RAPID TRANSIT HAS A LIGHT RAIL SYSTEM UNDER CONSTRUCTION DOWNTOWN OWNERS HAVE RENOVATED TWO MAJOR OFFICE BUILDINGS IN THE PAST 24 MONTHS AND THERE IS A REAL POSSIBILITY OF DOWNTOWN HOUSING WEST END RETAIL SALES ARE VERY STRONG AND THE WEST END'S 10SCREEN MOVIE THEATER WILL OPEN AROUND DEC 1 THE HIGH VACANCY RATE CITED IN YOUR ARTICLE WAS CAUSED PRIMARILY BY CORPORATE CONSOLIDATION AND OVERBUILDING NOT FLIGHT TO THE SUBURBS THE VACANCY RATE ALTHOUGH NOT IDEAL HAS TURNED THE CENTRAL BUSINESS DISTRICT INTO THE BEST OFFICESPACE VALUE FOR POSSIBLE TENANTS LARGE OR SMALL 9312310093 931110 TEXAS JOURNAL CHANGES IN ENERGY AND HEALTH CARE SPUR RAPID RISE IN JOBS FOR SENIOR EXECUTIVES BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL TEXAS EXECUTIVES DUST OFF YOUR RESUMES JOB HUNTING FOR UPPERLEVEL MANAGERS IS BETTER THAN IT HAS BEEN IN YEARS SAY CORPORATE RECRUITERS ACROSS THE STATE THEY REPORT SEEING BETWEEN 10 AND 25 MORE 100000PLUS SALARIED JOBS AVAILABLE THIS YEAR COMPARED WITH 1992 GIVE MUCH OF THE CREDIT TO ECONOMIC EXPANSION WHICH HAS LED TO INCREASED OPENINGS IN CERTAIN AREAS BUT SOME OF THE EXECUTIVE SPOTS ARE MORE THE RESULT OF CHANGE RATHER THAN GROWTH HOSPITALS FOR EXAMPLE ARE HIRING MANAGERS WITH THE EXPERTISE TO SEE THEM THROUGH HEALTHCARE REFORM AND ENERGY CONGLOMERATES ARE LOOKING FOR EXECUTIVES WHO CAN CAPITALIZE ON NATURALGAS PIPELINE DEREGULATION THERE'S MORE ACTIVITY NOW IN THE WORLD I OPERATE THAN I'VE FELT IN A LONG TIME SAYS CORPORATE RECRUITER DAVID A MORRIS OFFICE MANAGER OF RUSSELL REYNOLDS ASSOCIATES' HOUSTON OFFICE THERE'S A PACE AND BEAT THAT WE HAVEN'T EXPERIENCED SINCE THE LATE '70S AND EARLY '80S FROM CHIEF EXECUTIVE OFFICER TO VICE PRESIDENT THE PRIME TEXAS INDUSTRIES FOR HIGHLEVEL JOB HUNTING ARE HEALTH CARE NATURALGAS PRODUCTION AND MARKETING THE OILSERVICE INDUSTRY AND THE RAPIDLY GROWING AREAS OF BIOTECHNOLOGY AND PERSONALCOMPUTER TECHNOLOGY PROSPECTS ARE NOT SO GOOD IN THE SLOWERGROWING SECTORS OF MANUFACTURING RETAIL REAL ESTATE BANKING AND BECAUSE OF FEDERAL CUTBACKS AEROSPACE AND DEFENSE CONTRACTING IRONICALLY MUCH OF THE TOPLEVEL HIRING IN TEXAS IS TAKING PLACE IN THE ENERGY SECTOR WHICH HAS BEEN LOSING JOBS FOR THE PAST DECADE BUT INDUSTRY DEVELOPMENTS ARE CREATING SOME NEW HIGHLEVEL OPENINGS RISING NATURALGAS PRICES FOR INSTANCE HAVE LED TO A RELATIVELY BIG JUMP IN OFFSHORE DRILLING IN THE GULF OF MEXICO SUCH COMPLEX OPERATIONS REQUIRE MANAGERS WITH UPTODATE EXPLORATION AND PRODUCTION EXPERIENCE KEVIN PAGE A PRINCIPAL OF MEGA SEARCH INC SAYS HIS HOUSTON RECRUITING BUSINESS IN THE ENERGY EXPLORATION AND PRODUCTION SECTOR HAS TAKEN OFF IN THE PAST TWO MONTHS RIGHT NOW HE'S LOOKING FOR AN EXPLORATION MANAGER A JOB THAT GENERALLY PAYS 90000 TO 120000 A YEAR PLUS BONUSES A SENIOR LANDMAN A JOB INVOLVING NEGOTIATING LEASES THAT PAYS 75000 TO 85000 A YEAR OR MORE AND A PRODUCTION ENGINEER WHICH PAYS 50000 TO 80000 A YEAR ALL THE JOBS ARE FOR ONE CLIENT A MIDSIZE INDEPENDENT THAT IS ADDING MANAGEMENT STAFF TO PREPARE FOR A PLUNGE INTO THE GULF THOUGH DEMAND IS RISING FOR EXPERIENCED MANAGERS SALARIES HAVE NOT GONE UP SIGNIFICANTLY THERE'S A PERCEPTION AMONG EMPLOYERS THAT THERE ARE A LOT OF GOOD PEOPLE OUT THERE LOOKING FOR JOBS MR PAGE SAYS MEANWHILE PIPELINE DEREGULATION HAS ENHANCED OPPORTUNITIES FOR EXECUTIVES WITH EXPERIENCE IN NATURALGAS MARKETING BY LOOSENING CONTROLS ON WHO CAN SELL NATURAL GAS AND FOR HOW MUCH DEREGULATION HAS CREATED A LUCRATIVE NEW MARKET FOR LONG AND SHORTTERM SUPPLY CONTRACTS AND NATURALGASBASED FINANCIAL DERIVATIVES RELATED TOPLEVEL JOBS RUN THE GAMUT FROM EXECUTIVE VICE PRESIDENT IN CHARGE OF GAS MARKETING TO VICE PRESIDENT OF FUTURES TRADING VETERAN GAS MARKETERS ARE IN DEMAND TO FILL THE SPOTS BUT TRADERS AND INVESTMENT BANKERS ALSO ARE GOOD CANDIDATES RECRUITERS SAY CHIEF FINANCIAL OFFICERS ALSO ARE PARTICULARLY IN DEMAND IN OILPATCH BUSINESSES THESE DAYS STEVE RAYBEN A PARTNER AT BARTON RAYBEN INC SAYS HIS HOUSTON OFFICE HAS PLACED FIVE CHIEF FINANCIAL OFFICERS IN THE PAST YEAR THE MOST EFFECTIVE CFO CANDIDATES MR RAYBEN HAS SEEN ARE THOSE WHO HAD INVESTMENTBANKING EXPERIENCE EARLY IN THEIR CAREERS THEN MOVED ON TO GAIN A DECADE OR MORE OPERATING EXPERIENCE IN A SPECIFIC INDUSTRY ALSO ATTRACTIVE ARE THOSE WHO HAVE INDUSTRY EXPERIENCE RAISING MONEY OR MAKING ACQUISITIONS ONE FASTGROWING INDEPENDENT OIL PRODUCER RECENTLY HIRED MR RAYBEN TO FIND A NEW CFO TO HELP LAUNCH INTERNATIONAL PROJECTS THE SUCCESSFUL CANDIDATE HAD ABOUT FOUR YEARS OF EXPERIENCE EARLY IN HIS CAREER DOING DEALS IN AN INVESTMENT HOUSE AND EXPERIENCE WORKING IN A FINANCIAL POSITION FOR A MAJOR OIL COMPANY IN HEALTH CARE THE DEMANDS OF A NEW MARKETPLACE ARE CREATING OPPORTUNITIES FOR JOBSEEKERS ANTICIPATION OF THE FINALIZED HEALTHCARE PLAN HAS THE PRIVATE SECTOR JOCKEYING FOR POSITION SAYS BRECK RAY MANAGING DIRECTOR OF PAUL RAY BERNDTSON IN FORT WORTH THERE IS A LOT OF TURMOIL HOSPITAL CEOS ARE BEING REPLACED THIS IS PARTICULARLY TRUE IN TEXAS WHICH HAS BEEN ONE OF THE SLOWEST STATES TO EMBRACE MANAGED CARE A PRIMARY THRUST OF THE CLINTON ADMINISTRATION PLAN WHEN HOUSTON'S HERMANN HOSPITAL HIRED A NEW CEO IN JUNE IT OPTED FOR THE FORMER HEAD OF THE OCHSNER FOUNDATION HOSPITAL IN NEW ORLEANS DAVID PAGE WHO HAS EXTENSIVE EXPERIENCE IN HEALTH MAINTENANCE ORGANIZATIONS HERMANN ALSO RECENTLY ADDED A NEW POSITION VICE PRESIDENT OF MARKETING TO KICK OFF AN IMAGE CAMPAIGN WITH NEW BROCHURES AND A NEW PROMOTIONAL MAGAZINE THE HOSPITAL FOUNDED ONE CARE HEALTH INDUSTRIES INC A NONPROFIT ORGANIZATION THAT WILL NEGOTIATE CONTRACTS WITH MANAGEDCARE PROVIDERS AND IS LOOKING FOR A CEO AND SEVERAL HIGHLEVEL MANAGERS STARTUP COMPANIES IN PERSONALCOMPUTER TECHNOLOGY AND BIOTECHNOLOGY ARE SPROUTING STATEWIDE PARTICULARLY IN THE AUSTIN AREA AUSTIN IS HOT RIGHT NOW SAYS D CHRISTIAN FRANDSEN MANAGER OF TECHNOLOGY WITH MANAGEMENT RECRUITERS OF AUSTIN A SEARCH FIRM MOST OF THE JOBS ARE AT SMALLER COMPANIES HE OBSERVES WHICH OFTEN OFFER STOCK OPTIONS AND GOOD ADVANCEMENT POTENTIAL BUT DON'T PAY AS MUCH AS LARGER COMPANIES TYPICALLY A REGIONAL SALES MANAGER OF SOFTWARE OR HARDWARE FOR A SMALL AUSTIN FIRM EARNS 85000 TO 120000 PLUS SIGNIFICANT BONUSES MR FRANDSEN SAYS BANKING THANKS TO SEVERAL YEARS OF CONSOLIDATION AND CUTBACKS IS ONE OF THE MOST DIFFICULT AREAS IN WHICH TO LAND A TOPLEVEL JOB BUT MR RAY IN FORT WORTH SAYS THERE ARE SOME NEW POSSIBILITIES AS BANKS TRY TO BEEF UP THEIR CONSUMER OPERATIONS LONG A NEGLECTED AREA IN TEXAS PHILIP KENNY DIRECTOR OF HUMAN RESOURCES AT BANK ONE TEXAS A UNIT OF BANC ONE CORP COLUMBUS OHIO SAYS HE HAS HIRED FIVE EXECUTIVES IN THE PAST SEVERAL YEARS THE SUCCESSFUL CANDIDATES GENERALLY HAVE KEY RETAIL EXPERIENCE SUCH AS RUNNING AN AUTOMATEDTELLER PROGRAM OR MANAGING A GROUP OF BRANCHES IN A PARTICULAR REGION WE'RE NOW LOOKING TO BALANCE COMMERCIAL BANKING WITH MORE RETAIL BANKING MR KENNY SAYS INTERNATIONAL'S HOUSTON OFFICE BETWEEN APRIL 1990 AND APRIL 1993 WERE FOR THE ENERGY NATURALRESOURCES AND PETROCHEMICAL INDUSTRIES 9312310083 931110 TEXAS JOURNAL UNEMPLOYMENT IS TAKING RISING TOLL ON EMPLOYERS BY MICHAEL TOTTY TEXAS EMPLOYERS SOON WILL PAY MORE TO COVER PEOPLE WHO LOSE THEIR JOBS THE EMPLOYERFINANCED TRUST FUND THAT PROVIDES UNEMPLOYMENT CHECKS FOR TEXANS HAS DROPPED BELOW ITS MANDATED MINIMUM SO NEXT YEAR FOR THE FIRST TIME SINCE 1989 THE TEXAS EMPLOYMENT COMMISSION WILL COLLECT A DEFICIT TAX FROM EMPLOYERS BUSINESSES WITH THE WORST HISTORY OF UNEMPLOYMENT CLAIMS INCLUDING THOSE WITH BIG SEASONAL JOB SWINGS SUCH AS CONSTRUCTION COMPANIES WILL PAY ABOUT 588 PER WORKER IN 1994 UP FROM 571 THIS YEAR FOR EMPLOYERS THAT HAVE MADE FEW LAYOFFS TAXES WILL RISE 90 CENTS PER EMPLOYEE TO 3330 A YEAR STATE LAW REQUIRES THE TRUST FUND TO MAINTAIN A CUSHION EQUAL TO 1 OF THE TOTAL TAXABLE WAGES PAID IN TEXAS AS OF OCT 1 THE FUND HAD A BALANCE OF ABOUT 508 MILLION OR 30 MILLION BELOW THE ALLOWED FLOOR DESPITE SIGNS OF STRENGTH IN EMPLOYMENT THROUGH MUCH OF THIS YEAR THE TEXAS JOBLESS RATE FELL TO 66 IN SEPTEMBER BUT UNEMPLOYMENT PAYMENTS EXCEEDED REVENUE BY 489 MILLION IN THE THIRD QUARTER AND UNEMPLOYMENT REBOUNDED TO 75 LAST MONTH BESIDES EMPLOYERS THE BIGGEST CASUALTY MAY BE THE STATE'S FLEDGLING SMART JOBS FUND DESIGNED TO HELP COMPANIES PAY FOR WORKER TRAINING THE PROGRAM WHICH LAST WEEK ANNOUNCED ITS FIRST TWO GRANTS EXPECTED TO RECEIVE ABOUT 9 MILLION IN SURPLUS UNEMPLOYMENT FUNDS NEXT YEAR NOW IT APPARENTLY WILL HAVE TO GET BY ON THE 76 MILLION THE LEGISLATURE APPROPRIATED IT FOR 199394 9312310080 931110 TEXAS JOURNAL VOTE MAY NOT COOL INTEREST IN MUNI FUNDS BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL IS THERE A NEED FOR TEXAS INVESTORS TO HEDGE THEIR BETS AGAINST A POSSIBLE STATE INCOME TAX IT WOULDN'T SEEM SO AFTER LAST WEEK'S VOTE ON ELECTION DAY TEXAS VOTERS APPROVED A CONSTITUTIONAL AMENDMENT THAT WOULD GIVE THEM ULTIMATE VETO POWER OVER AN INCOME TAX ALTHOUGH OPINION IS DIVIDED OVER WHETHER THE AMENDMENT WOULD MAKE AN INCOME TAX MORE OR LESS LIKELY THE VOTE CLEARLY ADDS A NEW PERHAPS INSURMOUNTABLE OBSTACLE TO IMPOSING SUCH A TAX BUT MONEY MANAGERS WHO OVERSEE THE 5301 MILLION INVESTED IN TEXASONLY MUNICIPALBOND MUTUAL FUNDS REMAIN CONVINCED THAT TEXAS EVENTUALLY WILL JOIN 43 OTHER STATES THAT TAX PERSONAL INCOME LAST WEEK'S VOTE IS ANOTHER CURVE IN THE ROAD ON THE WAY TO A POSSIBLE INCOME TAX SAYS BOB PECK CHIEF INVESTMENT OFFICER FOR FIXEDINCOME SECURITIES AT HOUSTONBASED AMERICAN CAPITAL ASSET MANAGEMENT CO A UNIT OF PRIMERICA CORP IT'S NOT THE END OF THE ROAD BY ANY MEANS THERE ARE 16 OPENEND FUNDS AND A HANDFUL OF CLOSEDEND FUNDS THAT INVEST ONLY IN SECURITIES ISSUED BY STATE AND LOCAL GOVERNMENTAL ENTITIES IN TEXASSCHOOL BONDS SOLD BY DALLAS INDEPENDENT SCHOOL DISTRICT FOR EXAMPLE OR PRISON BONDS ISSUED BY THE TEXAS PUBLIC FINANCE AUTHORITY THEIR CHIEF APPEAL IS FOR INVESTORS WHO WISH TO SHELTER A PORTION OF THEIR EARNINGS NOT ONLY FROM FEDERAL INCOME TAXES BUT ALSO FROM A STATE INCOME TAX IF ONE IS EVER ENACTED THE TEXAS FUNDS HAVE GROWN MORE THAN 50 IN THE PAST YEAR AND ON AVERAGE THEY HAVE OUTPERFORMED ALL BUT A HANDFUL OF FUNDS IN OTHER STATES PEOPLE IN TEXAS ARE BIDDING THESE THINGS UP ON THE BASIS THAT THERE WILL BE A TAX ADVANTAGE SAYS MICHAEL LIPPER PRESIDENT OF LIPPER ANALYTICAL SERVICES INC THE DEMAND IS NOT BASED ON YIELD BUT CONSIDERABLE FEAR OF THIS TAX GOING THROUGH NOW THAT A HURDLE TO SUCH A LEVY HAS BEEN THROWN UP WILL INVESTORS ABANDON THE FUNDS IN DROVES NOT NECESSARILY AS LONG AS THERE IS A DIFFERENCE OF OPINION ON THE TAX ISSUE FUND MANAGERS SAY AT LEAST SOME INVESTORS WILL WANT TO BE AHEAD OF THE GAME IN THE EVENT OF AN INCREASED DEMAND FOR TAXFREE TEXAS BONDS IF THE MOOD WAS 100 ASSURED THAT WE WOULDN'T HAVE AN INCOME TAX HERE THERE MIGHT NOT BE A NEED FOR A TEXAS STATE MUNICIPALBOND FUND SAYS DICK HUMPHREY SENIOR VICE PRESIDENT FOR PRODUCT DEVELOPMENT AT AMERICAN CAPITAL IN ADDITION TO THE TAX ANGLE PART OF THE FUNDS' SUCCESS HAS COME AS A RESULT OF MARKETERS' APPEALS TO LONE STAR PRIDE PEOPLE LIKE TO INVEST IN WHAT THEY KNOW AND MANY INVESTORS WANT THEIR DOLLARS TO STAY IN THEIR COMMUNITY THEY SURE DON'T WANT TO BUILD A BRIDGE FOR A YANKEE MR PECK SAYS ABOUT HALF THE TEXAS FUNDS WERE INTRODUCED IN 1991 AND 1992 SHORTLY AFTER LT GOV BOB BULLOCK FACING A LOOMING BUDGET CRUNCH CAME OUT IN FAVOR OF AN INCOME TAX SINCE THEN BUSINESS EXECUTIVES HAVE ADVOCATED AN INCOME TAX AS A WAY TO REDUCE LOCAL GOVERNMENTS' AND SCHOOL DISTRICTS' OVERRELIANCE ON PROPERTY TAXES ENTER PROPOSITION 4 A CONSTITUTIONAL AMENDMENT THAT PROHIBITS AN INCOME TAX UNLESS APPROVED BY A MAJORITY OF VOTERS IT REQUIRES ANY SUCH TAX TO BE DEDICATED TO FINANCING EDUCATION AND LIMITING THE RATE OF LOCAL SCHOOL TAXES IT PASSED BY BETTER THAN A 2TO1 MARGIN 9312310073 931110 TEXAS JOURNAL RIVALS BLAST SOUTHWESTERN BELL'S TACTICS BUT FIRM COMPLAINS OUTDATED REGULATIONS PUT IT ON DEFENSIVE BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL DOES SOUTHWESTERN BELL CORP PLAY FAIR THE RESOUNDING ANSWER FROM COMPETITORS NO SOUTHWESTERN BELL THESE RIVALS SAY DOESN'T JUST FIGHT HARD IT FIGHTS TOO HARD THEY ACCUSE THE COMPANY OF TRYING TO KEEP COMPETITORS OUT OF THE MARKETPLACE EITHER BY FINANCIALLY SQUEEZING THEM THROUGH ITS CONTROL OF THE LOCAL PHONE NETWORK OR BY FORCING THEM INTO LONG LEGAL BATTLES OF THE BABY BELLS I HAVE CONTACT WITH SOUTHWESTERN BELL CLEARLY HAS THE MOST AGGRESSIVE POSITION AGAINST COMPETITION SAYS ROBERT ATKINSON SENIOR VICE PRESIDENT FOR REGULATORY AND EXTERNAL AFFAIRS AT TELEPORT COMMUNICATIONS GROUP INC A SOUTHWESTERN BELL COMPETITOR THEY PREFER TO COMPETE IN THE REGULATORY AND POLITICAL ARENA RATHER THAN IN THE MARKETPLACE MOREOVER CRITICS CHARGE BELL'S DEFENSIVENESS HURTS CONSUMERS BY STIFLING INNOVATION AND DETERRING NEW VENTURES SOME BUSINESS SERVICES USED ELSEWHERE IN THE COUNTRY FOR EXAMPLE AREN'T AVAILABLE IN SOUTHWESTERN BELL'S TERRITORY OR ARE AVAILABLE ONLY AT RELATIVELY HIGHER PRICES CHARGED BY SOUTHWESTERN BELL THE RECORD IN TEXAS SO FAR IS THAT COMPETITION HAS NOT BEEN WELCOMED SAYS BILL MAGNESS EXECUTIVE DIRECTOR OF THE COMMUNICATIONS COALITION OF TEXAS AN ALLIANCE OF BUSINESS AND CONSUMER GROUPS THAT SUPPORTS CONTINUED STATE REGULATION OF SOUTHWESTERN BELL WHERE THERE IS MORE COMPETITION CONSUMERS HAVE MORE CHOICES AND PRICES DECREASE SOUTHWESTERN BELL OFFICIALS INSIST THEY DO WELCOME COMPETITION THE PROBLEM THEY SAY IS THAT SOUTHWESTERN BELL UNLIKE ITS RIVALS IS WEIGHED DOWN BY OUTMODED STATE AND FEDERAL REGULATIONS IN THE COMPANY'S EYES IT IS LIKE GULLIVER TORMENTED BY SCORES OF UNREGULATED RIVALS YET RESTRAINED BY RULES DESIGNED FOR A LESS COMPETITIVE ERA WE SIMPLY DO NOT HAVE EITHER A FAIR OR AN EQUAL OPPORTUNITY TO COMPETE IN SUCH AN ENVIRONMENT SAYS ED ECKHART GENERAL ATTORNEY FOR REGULATORY MATTERS AT THE COMPANY'S SOUTHWESTERN BELL TELEPHONE CO UNIT SOUTHWESTERN BELL WHICH RANKS FIFTH IN REVENUE AMONG THE SEVEN BABY BELLS HAS THE EXCLUSIVE CHARTER TO PROVIDE BASIC TELEPHONE SERVICE TO MORE THAN 73 MILLION TEXAS HOMES AND BUSINESSES THE COMPANY WHICH ALSO OPERATES IN OKLAHOMA ARKANSAS KANSAS AND MISSOURI EARNED 45 OF ITS 10 BILLION IN 1992 REVENUE FROM ITS TEXAS PHONE OPERATIONS AND RECENTLY MOVED ITS HEADQUARTERS TO SAN ANTONIO LIKE ALL THE BABY BELLS SINCE THE 1984 BREAKUP OF AMERICAN TELEPHONE & TELEGRAPH CO SOUTHWESTERN BELL IS BARRED FROM OFFERING LONGDISTANCE SERVICE TO ITS LOCAL CUSTOMERS IT ALSO CAN'T SELL TELEPHONE EQUIPMENT OR PROVIDE CABLE PROGRAMMING IN ITS SERVICE TERRITORY THE BABY BELLS ARE FREER TO COMPETE OUTSIDE THEIR TERRITORIES FOR INSTANCE SOUTHWESTERN BELL IS SAID TO BE IN DISCUSSIONS TO BUY THE CABLE OPERATIONS OF COX ENTERPRISES INC AT THE SAME TIME THOUGH COMPETITORS HAVE INVADED ITS TURF OFFERING A HOST OF SERVICES INCLUDING PBX VOICE MAIL ALTERNATIVE TELEPHONE DIRECTORIES AND FIBEROPTIC LINKS TO LONGDISTANCE LINES BUT THERE'S A HITCH FOR MOST SERVICES COMPETITORS MUST FIRST GET SOUTHWESTERN BELL TO PROVIDE THEM WITH THE NECESSARY CONNECTION TO THE LOCAL PHONE NETWORK AND THIS THEY SAY IS SOUTHWESTERN BELL'S FIRST LINE OF DEFENSE THEY ACCUSE THE COMPANY OF ABUSING ITS MONOPOLY OVER THE LOCAL PHONE NETWORK ALLOWING CHALLENGERS IN ONLY AT PRICES THAT MAKE IT IMPOSSIBLE TO COMPETE WITH BELL'S OWN SERVICES IF THEY LET THEM IN AT ALL THAT IN TURN FORCES RIVALS EITHER TO GIVE UP OR TO CONTEST SOUTHWESTERN BELL IN PROTRACTED REGULATORY AND LEGAL PROCEEDINGS SOUTHWESTERN BELL RESPONDS THAT ITS PRICES ARE SET BY REGULATORS AND SOMETIMES DON'T EVEN COVER ITS COSTS ANY LOWER PRICES WOULD GIVE COMPETITORS AN UNFAIR ADVANTAGE OVER BELL THE COMPANY ADDS AND THE COMPANY HAS NO QUALMS ABOUT DEFENDING THIS POSITION IN COURT IF THAT'S THE ARENA WE'RE FORCED TO PLAY IN THAT'S WHERE WE'LL PLAY SAYS RICHARD SCHANEN SOUTHWESTERN BELL'S EXECUTIVE DIRECTOR OF PUBLICPOLICY DEVELOPMENT THE GAME GETS PRETTY ROUGH CONSIDER CENTEX TELEMANAGEMENT INC A SAN FRANCISCO TELECOMMUNICATIONS COMPANY THAT LEASES CENTRALOFFICE PBXTYPE SERVICES KNOWN AS CENTREX FROM THE BABY BELLS CENTEX RESELLS PIECES OF THE LEASED SYSTEM TO SMALL BUSINESSES AS PART OF A LARGER TELECOMMUNICATIONS PACKAGE CENTEX OPERATES IN NINE STATES AND ALONGSIDE FOUR OTHER BABY BELLS IT SAYS NO BABY BELL HAS FOUGHT ITS ENTRY INTO THE MARKET AS FIERCELY AS SOUTHWESTERN BELL SOUTHWESTERN BELL ARGUES THAT REGULATIONS BAR CENTEX FROM RESELLING ITS CENTREX SERVICE A SERVICE THAT SOUTHWESTERN BELL ITSELF SELLS DIRECTLY TO LARGE COMPANIES ALTHOUGH NOT TO SMALL BUSINESSES CENTEX DISAGREES SAYIG THAT THE TARIFF DOESN'T PROHIBIT IT AND THAT EVEN IF IT DOES IT SHOULDN'T THE COMPANY ASKED THE TEXAS PUBLIC UTILITY COMMISSION TO FORCE SOUTHWESTERN BELL TO LEASE IT THE SERVICES BUT AFTER FOUR YEARS THE CASE REMAINS UNDECIDED AND THE FIGHT HAS COST CENTEX WHICH LAST YEAR HAD 182 MILLION IN REVENUE NEARLY 2 MILLION IN LEGAL FEES SOUTHWESTERN BELL HAS A VERY STRAIGHTFORWARD POLICY TOWARD COMPETITION THEY'RE AGAINST IT UNLESS IT'S IN SOMEONE ELSE'S BACKYARD SAYS PETER HOWLEY CHAIRMAN AND CHIEF EXECUTIVE OF CENTEX BELL COUNTERS THAT BECAUSE ITS PRICES ARE REGULATED IT DOESN'T HAVE THE FLEXIBILITY TO RESPOND WHEN UNREGULATED COMPETITORS COME IN AND RESELL ITS SERVICES BELL CAN'T FOR INSTANCE RAISE PRICES ELSEWHERE TO MAKE UP FOR THE LOST REVENUE THE COMPANY SAYS THAT IF ITS CENTREX SERVICES CAN BE RESOLD IT COULD LOSE AT LEAST 30 MILLION A YEAR IN REVENUE A SIMILAR DISPUTE HAS ARISEN OVER SOUTHWESTERN BELL'S RESPONSE TO SOME OF THE NEWEST TELECOMMUNICATIONS PLAYERS COMPANIES THAT FURNISH ALTERNATIVE FIBEROPTIC LINES FOR LARGE USERS OF PHONE SERVICES THESE SOCALLED COMPETITIVEACCESS PROVIDERS CAME TO TEXAS IN THE LATE 1980S LAYING HIGHVOLUME OPTICALFIBER LINES IN DALLAS AND HOUSTON TO GIVE TELEMARKETERS OR AIRLINERESERVATION SYSTEMS ADDED CONNECTIONS TO LONGDISTANCE CARRIERS SOUTHWESTERN BELL IMMEDIATELY TRIED TO BLOCK THE INTRUSION HAULING TELEPORT COMMUNICATIONS MFS COMMUNICATIONS CO AND OTHERS BEFORE THE PUBLIC UTILITY COMMISSION INSISTING THAT THEY BE REGULATED JUST LIKE ANY OTHER PHONE COMPANY THE COMMISSION INSTEAD ISSUED NEW REGULATIONS ALLOWING THOSE COMPANIES TO OPERATE FREELY IN THE STATE SOUTHWESTERN BELL CHALLENGED THE RULES IN STATE COURT ARGUING THAT THEY DENIED IT EQUAL OPPORTUNITY TO COMPETE BECAUSE IT REMAINED REGULATED WHILE THE NEW RIVALS WEREN'T ALL WE WANT IS THE SAME FREEDOM EVERYONE ELSE HAS SAYS ROBERT LYNCH SOUTHWESTERN BELL TELEPHONE'S GENERAL COUNSEL FOR EXTERNAL AFFAIRS BUT A DISTRICT JUDGE LAST MONTH UPHELD THE RULES AND BELL HAS APPEALED TO THE THIRD DISTRICT COURT OF APPEALS IN AUSTIN THE LONG BATTLE HAS PERSUADED TELEPORT WHICH HAS FIBEROPTIC NETWORKS IN 11 CITIES SOME IN THE SERVICE AREAS OF OTHER BABY BELLS TO SLOW ITS EXPANSION IN TEXAS THEY FORCED US TO LOOK ELSEWHERE FOR INVESTMENT SAYS MR ATKINSON OF TELEPORT WHICH IS OWNED BY FOUR LARGE CABLE TELEVISION COMPANIES IT'S A VERY EFFECTIVE WAY TO QUASH COMPETITION MEANWHILE SOUTHWESTERN BELL'S TACTICS HAVE COST IT SOME RECENT COURT JUDGMENTS THIS SUMMER A FEDERAL JUDGE IN AMARILLO UPHELD A 15 MILLION JURY AWARD IN A 1990 ANTITRUST CASE AGAINST THE COMPANY THE JURY FOUND THAT BELL HAD USED ITS CONTROL OVER TELEPHONE LISTINGS TO TRY TO MONOPOLIZE THE DIRECTORY ADVERTISING MARKET AMARILLOBASED GREAT WESTERN DIRECTORIES INC WHICH PUBLISHES ALTERNATIVE PHONE DIRECTORIES IN 17 TEXAS CITIES ACCUSED SOUTHWESTERN BELL OF UNFAIRLY RAISING THE PRICE IT CHARGED ALTERNATIVE DIRECTORIES TO USE ITS LISTINGS TO 1 PER LISTING FROM 30 CENTS IN TWO YEARS AT THE SAME TIME GREAT WESTERN ALLEGED BELL SLASHED ITS YELLOW PAGES ADVERTISING RATES 40 THERE IS NO DOUBT IN MY MIND THAT HAD THEY BEEN ALLOWED TO GO FORWARD THEY WOULD HAVE INDEED PUT ME OUT OF BUSINESS SAYS RICHARD O'NEAL GREAT WESTERN'S PRESIDENT IN CONFIRMING THE JURY AWARD US DISTRICT JUDGE MARY LOU ROBINSON ALSO ORDERED BELL TO SELL DIRECTORY LISTINGS TO GREAT WESTERN AND CANYONBASED CANYON DIRECTORIES INC FOR 13 1/2 CENTS EACH FOR UP TO FIVE YEARS SOUTHWESTERN BELL WHICH ARGUED THAT IT ACTED LEGITIMATELY PLANS TO APPEAL ALSO THIS SUMMER SOUTHWESTERN BELL WAS HIT WITH ANOTHER UNFAVORABLE ANTITRUST DECISION THIS TIME A 57 MILLION RULING IN GALVESTON STATE COURT IN THAT CASE METROLINK TELECOM INC A TEXAS CITY COMPANY THAT PROVIDES BUSINESSES IN THE GALVESTON AREA WITH LOCAL HOUSTON NUMBERS THROUGH WHICH THEIR HOUSTON CUSTOMERS CAN REACH THEM ACCUSED SOUTHWESTERN BELL OF REFUSING TO SELL IT ADDITIONAL NUMBERS AND STRIPPING ITS CLIENTS' METROLINE LISTINGS FROM BELL'S DIRECTORIES BELL ARGUED THAT METROLINK'S SERVICES VIOLATED REGULATIONS AGAINST RESELLING PHONE SERVICE IT ALSO ARGUED THAT METROLINK FUNCTIONS LIKE A LONGDISTANCE COMPANY AND SHOULD BE CHARGED HIGHER LONGDISTANCE ACCESS RATES TO CONNECT TO ITS NETWORK RATHER THAN THE LOWER RATES SOUTHWESTERN BELL MUST CHARGE A REGULAR BUSINESS CUSTOMER TO HOOK INTO LOCAL LINES BUT A GALVESTON COUNTY JURY FOUND THAT SOUTHWESTERN BELL'S ACTIONS WERE AN ILLEGAL ATTEMPT TO MONOPOLIZE THE MARKET SOUTHWESTERN BELL HAS APPEALED THE DECISION SOUTHWESTERN BELL'S MR LYNCH SAYS THE TWO ANTITRUST JUDGMENTS AREN'T A BAROMETER OF HOW WE DEAL WITH OUR CUSTOMERS AND OUR COMPETITORS ON A DAYTODAY BASIS WE BELIEVE THOSE LAWSUITS ARE ABERRATIONS AND WILL BE REVERSED ON APPEAL HERE ARE THE BUSINESSES THAT SOUTHWESTERN BELL IS IN AND THE COMPETITION IT FACES IN EACH COMPETITION EXCLUSIVE FRANCHISE IN LOCALEXCHANGE SERVICE POTENTIAL COMPETITION FROM CELLULAR WIRELESS PERSONALCOMMUNICATIONS SERVICES AND COMPETITIVEACCESS PROVIDERS COMPETITION MORE THAN 100 INDEPENDENT PAYTELEPHONE PROVIDERS INCLUDING CHEROKEE COMMUNICATIONS INC PEOPLES TELEPHONE CO AND NORTHERN AMERICAN INTELECOM INC COMPETITION MORE THAN 250 VENDORS PROVIDING PBX SYSTEMS INCLUDING AT&T NORTHERN TELECOM AND ROLM SYSTEMS COMPETITION THE SOCALLED COMPETITIVEACCESS PROVIDERS THAT GIVE LARGE BUSINESSES AN ALTERNATIVE FIBEROPTIC LINK TO LONGDISTANCE SERVICES AMONG THE LARGEST CAPS METROPOLITAN FIBER SYSTEMS AND TELEPORT COMMUNICATIONS GROUP COMPETITION ABOUT 25 INDEPENDENT DIRECTORY PUBLISHERS INCLUDING GREAT WESTERN DIRECTORIES INC AND TRANSWESTERN PUBLISHING COMPETITION MORE THAN 60 PAGING COMPANIES INCLUDING UNITS OF MCCAW CELLULAR COMMUNICATIONS PACIFIC TELESIS AND BELLSOUTH MORE THAN 655 MOSTLY SMALL AND MIDSIZE ANSWERING AND VOICEMAIL SERVICES COMPETITON ABOUT 17 CELLULARTELEPHONE COMPANIES ARE LICENSED IN SOUTHWESTERN BELL'S LOCALEXCHANGE TERRITORIES INCLUDING MCCAW CELLULAR COMMUNICATIONS GTE MOBILNET AND CONTEL CELLULAR SOURCES PUBLIC UTILITY COMMISSION AND INDUSTRY SOURCES 9312310069 931110 TEXAS JOURNAL HEARD IN TEXAS PIZZA INN COOKS UP TURNAROUND AND GRABS BIGGER SLICE OF MARKET BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS WHEN THE MOON HITS YOUR EYE LIKE A BIG PIZZA PIE THAT'S A'MONEY WELL AT LEAST THAT'S HOW PIZZA INN INVESTORS ARE CROONING IT THESE DAYS JUST 15 MONTHS AGO THE STOCK OF THIS FRANCHISOR OF 428 PIZZA PARLORS SWAPPED HANDS ON THE PINK SHEETS FOR 69 CENTS A SHARE TODAY PIZZA INN TRADES ON NASDAQ AT ROUGHLY 4 NET INCOME ROCKETED TO 22 MILLION IN FISCAL 1993 ENDED JUNE 27 FROM A LOSS OF 866000 A YEAR BEFORE AND NATIONS RESTAURANT NEWS AN INDUSTRY PUBLICATION RECENTLY RANKED PIZZA INN THE COUNTRY'S TOP CHAIN FOR 1993 BASED ON SALESPERUNIT GROWTH THIS IS A TURNAROUND STORY THAT HAS ALREADY BEGUN SAYS STEVEN J COOK A DIRECTOR AT FIRST SOUTHWEST CO IN DALLAS THE NUMBERS PROVE IT LAST MONTH SAN FRANCISCOBASED GRUBER & MCBAINE CAPITAL MANAGEMENT RATED PIZZA INN ONE OF ITS TOP INVESTMENTS FOR THE NEXT 12 MONTHS WITH A TARGET PRICE OF 8 DAVID HINES PRESIDENT OF HINES MANAGEMENT IN CONWAY ARK CALLS PIZZA INN ONE OF HIS FAVORITE INVESTMENTS FOR THE COMING YEAR MR COOK EXPECTS EARNINGS EXPANSION OF 20 TO 25 ANNUALLY FOR AT LEAST FIVE YEARS THAT'S MINIMUM GROWTH SAYS RONALD W PARKER PIZZA INN'S CHIEF OPERATING OFFICER NOTING THE COMPANY'S PRETAX PROFIT NEARLY DOUBLED TO 637000 IN THE FIRST QUARTER ENDED SEPT 26 BUT THOSE ARE JUST NUMBERS THE REAL REASON TO OWN A SLICE OF PIZZA INN ANALYSTS SAY IS THE COMPANY'S MANAGEMENT PRESIDENT AND CHIEF EXECUTIVE OFFICER JEFF ROGERS AND MR PARKER BOTH JOINED PIZZA INN IN 1990 TO GUIDE IT OUT OF BANKRUPTCYLAWPROCEEDINGS AFTER SPENDING THE 1980S TURNING AROUND USA CAFES' BONANZA UNIT A STEAKHOUSE RESTAURANT CHAIN THAT WAS LOSING MONEY AND MARKET SHARE AT BONANZA MESSRS ROGERS AND PARKER IMPLEMENTED A FRANCHISING STRATEGY COMPARABLE WITH WHAT THEY'VE DONE AT PIZZA INN THE RESULTS FROM 1983 TO 1986 BONANZA'S REVENUES DOUBLED EARNINGS JUMPED NEARLY 90 AND SHAREHOLDER EQUITY TRIPLED WITH THIS STOCK YOU'RE BUYING THE PEOPLE WHO HAVE PROVED THEY CAN MAKE THINGS WORK SAYS JOHN CRANK SENIOR VICE PRESIDENT AT MAY FINANCIAL IN DALLAS WHICH AGGRESSIVELY BOUGHT PIZZA INN SHARES EARLY ON AND WHICH CONSIDERS THE COMPANY A BUY AT CURRENT LEVELS THEY'RE HANDSON GETITDONETYPE GUYS SELLING YOU STEAK NOT SIZZLE STILL MANY INVESTORS MIGHT BE SPOOKED BY THE SPECTER OF 1989'S BANKRUPTCYLAW FILING WHICH EXPOSED JUST HOW POORLY THE NATION'S THIRDLARGEST PIZZA CHAIN WAS BEING RUN AND WHICH LEFT SHAREHOLDERS HOLDING JUST 5 OF THE COMPANY ADDITIONALLY INVESTORS MIGHT BE PUT OFF BY THE COMPANY'S HEFTY DEBTTOEQUITY RATIO OF ABOUT FIVETOONE BUT THOSE PIZZA NIGHTMARES APPEAR TO BE BEHIND IT PIZZA INN EMERGED FROM BANKRUPTCY IN LATE 1990 WITH A REDESIGNED MISSION AND A PROVEN GROWTH STRATEGY AS FOR THE DEBT BURDEN IN JUST TWO YEARS THE COMPANY HAS CUT ITS DEBT IN HALF TO 15 MILLION AND ANALYSTS NOTE PIZZA INN IS GENERATING ENOUGH CASH FLOWABOUT 55 MILLION ANNUALLY TO PAY OFF THE DEBT QUICKLY PIZZA INN'S GROWTH IS BEING FUELED NOT WITH COMPANY CASH BUT WITH THE INVESTMENTS OF ITS FRANCHISEES PIZZA INN EXPANDS THROUGH A SOCALLED AREA DEVELOPER AGREEMENT UNDER WHICH ENTREPRENEURS PURCHASE THE RIGHT TO OWN AND OPERATE OR SUBFRANCHISE THE PIZZA INN CONCEPT IN A DEFINED TERRITORY FOR THAT RIGHT THE FRANCHISEE PAYS 20000 PER UNIT IN FRANCHISE FEES ALONG WITH ANNUAL ROYALTIES EQUAL TO 4 OF EACH UNIT'S SALES IN ESSENCE ENTREPRENEURIAL OWNERS WHO HAVE A MORE PERSONAL STAKE IN THE SUCCESS OF THE COMPANY THAN DO TYPICAL COMPANYEMPLOYED STORE MANAGERS PAY THE COST OF EXPANDING PIZZA INN BECAUSE PIZZA INN ISN'T USING ITS OWN MONEY TO EXPAND AND BECAUSE ITS DEBT SHOULD BE PAID OFF IN SHORT ORDER AT SOME POINT PIZZA INN BECOMES A CASH MACHINE THAT'S WHAT HAPPENED AT BONANZA WHERE MANAGEMENT ULTIMATELY FUNNELED CASH FLOW TO INVESTORS IN THE FORM OF DIVIDENDS PIZZA INN OF COURSE HAS STIFF COMPETITION IN THE PIZZA MARKET BOTH WITH DINEIN AND DELIVERY THE THREE GIANTS PEPSICO'S PIZZA HUT UNIT DOMINO'S AND LITTLE CAESAR'S HAVE NEARLY 16000 UNITS COMBINED NATIONWIDE ACCORDING TO RESTAURANT CONSULTING GROUP EVANSTON ILL THEN THERE'S AN UNLIMITED BUFFET OF MOMANDPOP PIZZA PARLORS AS WELL AS SMALLER NATIONAL AND REGIONAL CHAINS BUT THE PIZZA MARKET IS HUGE CONSUMING 17 BILLION A YEAR IN ANNUAL SALES AND GROWING ACCORDING TO NPD CREST PARK RIDGE ILL WHICH TRACKS THE FOOD INDUSTRY WITHIN THIS EXPANDING INDUSTRY PIZZA INN IS ONE OF THE THREE FASTESTGROWING CHAINS RECORDING DOUBLEDIGIT SALES GAINS PIZZA INN'S SYSTEMWIDE SALES IN THE FIRST QUARTER JUMPED 11 TO 50 MILLION FROM YEARAGO LEVELS SAMESTORE SALES OR SALES AT STORES OPEN AT LEAST A YEAR LEAPED MORE THAN 15 IN THE FULL YEAR FROM FISCAL 1992 THE NEXTCLOSEST PIZZA COMPETITOR IRVINGBASED SHOWBIZ PIZZA TIME'S CHUCK E CHEESE'S UNIT WITH A 32 INCREASE ACCORDING TO NATIONS RESTAURANT NEWS YEAR ENDED JUNE 27 1993 FIRST QUARTER SEPT 26 1993 SHAREHOLDERS IN DALLAS'S PRATT HOTEL ROLLED A WINNER LAST WEEK THE COMPANY WHICH PARTLY OWNS THE SANDS HOTEL AND CASINO IN ATLANTIC CITY NJ SAW ITS SHARES SOAR MORE THAN 70 TO CLOSE AT 7875 THE NEWS BEHIND THE MOVEMENT PRATT REPORTED A NINEFOLD INCREASE IN THIRDQUARTER PERSHARE EARNINGS IN THE QUARTER PRATT HAD NET OF 146 MILLION OR 28 CENTS A SHARE COMPARED WITH 133000 OR THREE CENTS A SHARE A YEAR AGO SHARES OF MOORCO INTERNATIONAL HOUSTON JUMPED 14 AFTER THE MAKER OF FLUIDMEASUREMENT AND PRESSURECONTROL DEVICES SAID IT ACQUIRED THE ASSETS AND BUSINESS OF HUTCHISON KANBASED INVALCO A DIVISION OF CLOSELY HELD NATIONAL TANK CO INVALCO IS A MAKER OF VALVES FLOW METERS ANALYZERS AND OTHER INSTRUMENTS FOR THE PETROLEUM AND INDUSTRIALPROCESS INDUSTRIES TWO UNRELATED TANDY STOCKS TANDY CORP AND TANDYCRAFTS INCREASED MORE THAN 13 AFTER ANALYSTS INITIATED COVERAGE OF THE COMPANIES WITH BUY RATINGS TANDYCRAFTS ROSE TO 17 FROM 15 AFTER PRINCIPAL/EPPLER GUERIN & TURNER LABELED THE FORT WORTH HOBBY AND HANDICRAFTS COMPANY A STRONG BUY LIKEWISE TANDY CORP CLOSED AT 4625 UP MORE THAN 5 AFTER ROBERTSON STEPHENS TAGGED THE FORT WORTH CONSUMERELECTRONICS COMPANY WITH A BUY RECOMMENDATION THURSDAY THAT DAY TANDY ANNOUNCED OCTOBER SAMESTORE SALES OR SALES AT STORES OPEN AT LEAST A YEAR ROSE 8 THE ANALYST NOTED THAT HE IS POSITIVE ON THE TURNAROUND POTENTIAL FOR TANDY'S RADIO SHACK DIVISION SHARES OF HOWEBASED OLD AMERICA STORES DROPPED 23 TO 1025 AFTER REPORTING OCTOBER'S SAMESTORE SALES SLIPPED 08 BASED ON THAT DECLINE THE COMPANY NOTED IT'S POSSIBLE ANALYSTS' EARNINGS ESTIMATES OF 23 CENTS A SHARE FOR THIRD QUARTER ENDED MONDAY COULD BE SOMEWHAT OVERSTATED THE OPERATOR OF DISCOUNT RETAIL STORES REPORTED SAMESTORE SALES INCREASES OF 14 AND 18 IN AUGUST AND SEPTEMBER RESPECTIVELY 9312310022 931110 TEXAS JOURNAL WINNERS & LOSERS TRUCK OWNERS GENERAL MOTORS WILL PROVIDE 1000 VOUCHERS TO THOUSANDS OF TEXANS WHO OWN MODEL CK LIGHTDUTY TRUCKS WITH SIDEMOUNTED FUEL TANKS IN SETTLEMENT OF A LAWSUIT AMERICAN AIRLINES THE AIRLINE WON US GOVERNMENT APPROVAL FOR THREE COVETED ROUTES TO LONDON FROM NASHVILLE AND RALEIGHDURHAM MARIA DE JESUS H NAVAR AN ARBITRATOR AWARDED THE ELDERLY EL PASO WOMAN MORE THAN 1 MILLION STEMMING FROM ALLEGATIONS THAT A BROKER HAD MISHANDLED HER LIMITED PARTNERSHIP INVESTMENTS NATIONAL MEDICAL ENTERPRISES THE CALIFORNIA HOSPITAL CHAIN'S FORMER SAN ANTONIO PSYCHIATRIC HOSPITAL AGREED TO PAY 2 MILLION AND PLEAD GUILTY TO TWO CHARGES TO SETTLE A CRIMINAL FRAUD CASE PARKLAND MEMORIAL THE DALLAS HOSPITAL PLANS TO SUE THE FEDERAL GOVERNMENT TO RECOVER 370000 IN UNPAID BILLS FOR THREE BRANCH DAVIDIANS TREATED AFTER THEIR COMPOUND BURNED FORT WORTH A HOUSESENATE CONFERENCE COMMITTEE SLASHED FUNDING FOR LOCKHEED'S F16 FIGHTER AND A BELL HELICOPTER UPGRADE PROGRAM 9312310015 931130 IN THE LAB MITES AND MEN A TALE OF TORMENT BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL GLASGOW SCOTLAND MATTHEW COLLOFF CAREFULLY FOCUSES HIS MICROSCOPE FOR A CLOSE LOOK A COUPLE OF YEARS AGO THESE WERE GROWING IN SOMEBODY'S MATTRESS IN FLORIDA HE ANNOUNCES THROUGH THE MICROSCOPE A MENAGERIE OF MITES CAN BE SEEN SCUTTLING AROUND AND OVER ONE ANOTHER EIGHT HAIRY LEGS NO EYES FEARSOME JAWS AND A TOUGH TRANSLUSCENT SHELL THE STUFF OF NIGHTMARES LITERALLY COME NIGHTTIME IN PERHAPS 80 OF WESTERN HOMES MITES LIKE THESE WHOOP IT UP INSIDE THE MATTRESS WHILE THE HUMANS SLEEP UNAWARE A FAVORITE FOOD HUMAN SKIN FLAKES MR COLLOFF A 35YEAROLD BRITISH ZOOLOGIST HAS A STRONG STOMACH AND A PECULIAR SPECIALTY HOUSEDUST MITES THOUGH IMPOSSIBLE TO SEE WITH THE NAKED EYE THE MOST COMMON MITE SPECIES IN EUROPE AND THE US IS AT MOST A THIRD OF A MILLIMETER LONG A MERE PINPRICK THEIR EXISTENCE IS BY NOW FAIRLY WIDELY KNOWN THANKS TO MICROPHOTOGRAPHY MR COLLOFF IS AMONG A FEW SCORE OF SCIENTISTS IN THE WORLD WHO HAVE BEEN STUDYING THE MANY MEDICAL PROBLEMS CAUSED BY THESE INVISIBLE PESTS WHAT THEY ARE FINDING IS THAT DUST MITES MAY BE A FACTOR IN 50 TO 80 OF ASTHMATICS AS WELL AS IN COUNTLESS CASES OF ECZEMA HAY FEVER AND OTHER ALLERGIC AILMENTS BY MR COLLOFF'S ESTIMATE ABOUT 500 MILLION PEOPLE AROUND THE WORLD ARE ALLERGIC TO DUST MITES OR MORE PRECISELY TO SOME SPECIAL PROTEINS IN THEIR DROPPINGS THAT MAKES THEM ONE OF THE FOUR MOST COMMON CAUSES OF ALLERGY ALONG WITH CAT DANDER COCKROACH DROPPINGS AND GRASS POLLEN PRECISELY HOW SUCH CREEPY BUT OTHERWISE HARMLESS CREATURES CAUSE SO MANY PROBLEMS IS A CENTRAL UNSOLVED PROBLEM THE WHEEZEINDUCING PROTEINS ARE DIGESTIVE JUICES FROM THE MITE GUT AND THEY ARE POTENT BARELY 10 MILLIONTHS OF A GRAM ARE INHALED BY A TYPICAL PERSON IN A YEAR STUDIES HAVE SHOWN THAT GENES PREDISPOSE PEOPLE TO OVERREACT AND EXPOSURE TO THE MITES IN THE FIRST CRUCIAL YEAR OF LIFE CAN TRIGGER A LIFELONG ALLERGY BUT THERE ISN'T ANY CURE ONLY PREVENTION UNLESS YOU CONTROL MITE LEVELS YOU AREN'T GOING TO DRAMATICALLY AFFECT THE COURSE OF THE ALLERGIC DISEASE SAYS MARTIN CHAPMAN AN ALLERGY RESEARCHER AND ASSOCIATE PROFESSOR OF MEDICINE AT THE UNIVERSITY OF VIRGINIA THAT'S WHERE MR COLLOFF COMES IN WITH A DOCTORATE IN ZOOLOGY HIS SPECIALTY FOR MUCH OF THE PAST DECADE HAS BEEN COLLECTING CULTIVATING AND STUDYING MITES AND EXAMINING NEW WAYS TO GET RID OF THEM HE IS OF COURSE ALLERGIC AFTER A LONG DAY OF MITE WRANGLING HE SOMETIMES BREAKS OUT IN A RED RASH AROUND HIS NECK COLLECTING THE MITES IS EASY ARMED WITH A SPECIAL VACUUM CLEANER MR COLLOFF VISITS FRIENDS' HOUSES OR JUST KNOCKS ON DOORS AROUND GLASGOW SUCKING THE MITES UP FROM PEOPLE'S BEDS A TYPICAL USED MATTRESS MAY HAVE ANYWHERE FROM 100000 TO 10 MILLION MITES INSIDE HE ESTIMATES THOUGH THEY ALSO LIVE IN CARPETS AND OTHER FURNISHINGS BEDS ARE A PRIME HABITAT MITES LIKE WARM MOIST SURROUNDINGS SUCH AS THE INSIDES OF A MATTRESS WHEN SOMEONE'S ON IT THEY ALSO EAT IN BED A TYPICAL MATTRESS IS WELLSTOCKED WITH FUNGI SKIN FLAKES AND OTHER COMESTIBLES CULTIVATING THE MITES IS ALSO SIMPLE THOUGH SOME MITECOLLECTORS USE REAL SKIN FLAKES MR COLLOFF KEEPS HIS PETS IN PLASTIC PETRI DISHES FILLED WITH FISH FOOD FLAKES THERE THEY CAN BREED FOR MONTHS OR YEARS HANDY TO HIS MICROSCOPES AT THE SCOTTISH PARASITIC DIAGNOSTIC LABORATORY A GOVERNMENTSUPPORTED LAB THAT STUDIES PARASITES PERIODICALLY HE SWAPS MITE LORE AT INTERNATIONAL CONFERENCES ON ACAROLOGY THE NAME FOR THE STUDY OF SUCH BUGS STRICTLY SPEAKING THESE AREN'T INSECTS RATHER THEY ARE IN THE SAME FAMILY ACARAE AS SPIDERS AND TICKS HE PUBLISHES HIS FINDINGS IN SUCH JOURNALS AS EXPERIMENTAL AND APPLIED ACAROLOGY AND CLINICAL AND EXPERIMENTAL ALLERGY THROUGH HIS MICROSCOPE THE MITES HAVE THE SAME CAN'TTEARYOUREYESAWAY APPEAL OF A GOOD HORROR MOVIE THEY SCUTTLE QUICKLY ACROSS THE PETRI DISH OVER AND AROUND EACH OTHER AS THEY HUNT FOOD MR COLLOFF POINTS OUT A COURTING COUPLE THE SMALL MALE IS CLINGING TO THE FEMALE'S BACK FOR DEAR LIFE AS SHE CHARGES ON UNDIVERTED FROM HER CONSTANT SEARCH FOR FOOD UNDER OPTIMAL CONDITIONS THE MITES GROW FROM EGG TO ADULT IN A MONTH AND THEN LIVE FOR ABOUT ANOTHER MONTH WHERE THEY CAME FROM IS A MYSTERY FOSSILS OF DISTANT RELATIVES HAVE BEEN FOUND DATING BACK 400 MILLION YEARS AND MANY MITE SPECIES LIVE TODAY IN BIRDS' NESTS IN BARNS OR AMONG STORED GRAIN AND STRAW AT SOME POINT IN MAN'S PREHISTORY SOME SPECIES HOPPED INTO BED THE FIRST WAS SPOTTED BY A RUSSIAN SCIENTIST IN 1854 THEY ARE MOST ABUNDANT IN COASTAL AREAS BUT ACAROLOGISTS ALSO FIND THEM INLAND FROM STRASBOURG FRANCE TO COLUMBUS OHIO VERY HIGH AND VERY DRY CITIES ARE AMONG THE FEW LOWMITE ZONES FOR INSTANCE LOS ALAMOS NM OR DAVOS SWITZERLAND ONE OF MR COLLOFF'S EARLY IDEAS IN COPING WITH MITES WAS FREEZING THEM OUT WITH LIQUID NITROGEN THOUGH HE CONCEDES THAT'S A BIT IMPRACTICAL FOR THE AVERAGE HOUSEKEEPER MORE RECENTLY HE HAS BEEN STUDYING STEAMCLEANERS WHICH HAVE BEEN SHOWN TO KILL THE MITES BUT WHOSE MEDICAL BENEFITS HAVEN'T YET BEEN PROVED AT THE UNIVERSITY OF VIRGINIA RESEARCHERS LAST YEAR PUBLISHED A LIST OF MITECOPING MEASURES THEY FOUND TO BE EFFECTIVE THE LIST RECOMMENDS LINING MATTRESS AND PILLOWS IN SPECIAL PLASTIC COVERS TO SEPARATE MITES AND SLEEPER THE VIRGINIANS ALSO SUGGEST CLEANING WEEKLY WITH A VACUUM EQUIPPED WITH A GOOD FILTER AND PREFERABLY REMOVING ANY BEDROOM CARPETING OR OTHER MITE FRIENDLY FURNISHINGS ENTIRELY ON OTHER MEASURES THE SCIENTIFIC EVIDENCE IS MIXED FOR INSTANCE COMMERCIAL MITEKILLING FLUIDS DON'T ALWAYS GET TO THE BEASTS DEEP INSIDE A MATTRESS AND AIR IONIZERS APPEAR TO BE INEFFECTIVE IN DEALING WITH MITES BUT RESEARCHERS IN THIS FIELD GRIPE CONSTANTLY THAT THE BASIC MITECONTROL PROCEDURES AREN'T OBSERVED BY MORE ALLERGY SUFFERERS ESPECIALLY ASTHMATIC CHILDREN FOR MOST OF WHOM THE CLINICAL EVIDENCE OF MITESENSITIVITY IS OVERWHELMING WHEN CONFRONTED WITH AN ASTHMATIC A TYPICAL CHEST SPECIALIST WILL PRESCRIBE COSTLY INHALERS WHILE AN ALLERGIST MIGHT RECOMMEND DESENSITIZATION SHOTS SAYS JOHN WARNER AN ALLERGY RESEARCHER AND PROFESSOR OF CHILD HEALTH AT THE UNIVERSITY OF SOUTHAMPTON ENGLAND SAYS DR WARNER NEITHER OF THESE GROUPS OF DOCTORS HAS THOUGHT ENOUGH ABOUT ALLERGEN AVOIDANCE WHICH SEEMS TO BE THE KEY TO DEALING WITH ALLERGY PROBLEMS SEE RELATED LETTER LETTERS TO THE EDITOR MITEY SENSITIVE PEOPLE BREATHE EASIER IN US WSJ DEC 31 1993 9311300094 YY93 MM12 9312310010 931110 TEXAS JOURNAL OUR NO 1 HASSLE ENDLESS GRIPING BY PHYSICIANS BY ROBERT TOMSHO WHAT BUGS DOCTORS THE MOST WITH PHYSICIANS FACING MORE SCRUTINY FROM INSURERS GOVERNMENT PAYERS AND MANAGEDCARE NETWORKS THE TEXAS MEDICAL ASSOCIATION NOW DISTRIBUTES A HASSLE FACTOR LOG IN ITS PUBLICATIONS THE TEAROUT SHEET FIRST PUBLISHED LAST YEAR HAS BECOME THE MODEL FOR SIMILAR LOGS IN FLORIDA AND CALIFORNIA AND INCLUDES SPACE FOR PHYSICIANS TO LIST THE NATURE OF THEIR HASSLE WITH THE THIRDPARTY PAYER WHAT ACTION THEIR STAFF TOOK AND THE ESTIMATED TIME INVOLVED PERHAPS NOT SURPRISINGLY MANY OF THE COMPLAINTS REVOLVE AROUND MONEY OR RATHER THE LACK OF IT OF THE 2677 COMPLAINTS LOGGED SO FAR THE MOST COMMON WERE DENIAL OF PAYMENT 575 REPEATED REQUESTS FOR PATIENT INFORMATION 379 AND REDUCTION OF BILLED CHARGES 262 MEANWHILE PHYSICIANS ESTIMATED THAT THEY SPENT ABOUT ONE HOUR ON EACH HASSLE AND THAT THEIR STAFF MEMBERS SPENT AN ESTIMATED 32 HOURS PER HASSLE USUALLY BY MAKING TELEPHONE CALLS RESUBMITTING CLAIMS AND WRITING LETTERS DETAILING THE TREATMENT THEY PROVIDED TO PATIENTS BUT THE LOG HAS BECOME MORE THAN A VENT FOR PHYSICIAN FRUSTRATION EVERY TWO MONTHS ASSOCIATION STAFFERS MEET WITH MEDICAID AND MEDICARE ADMINISTRATORS TO HASH OUT THEIR WORST HASSLES AND THE ORGANIZATION RECENTLY HAS BEGUN HOLDING SIMILAR SESSIONS WITH PRIVATE INSURERS MEANWHILE THE ASSOCIATION IS GIRDING FOR A NEW SORT OF HASSLE WITH THE CLINTON ADMINISTRATION INTRODUCING REFORMS THAT ARE EXPECTED TO ENCOURAGE MORE MANAGED CARE DOCTORS ARE FLOCKING TO SIGN UP WITH HEALTH MAINTENANCE ORGANIZATIONS AND PREFERREDPROVIDER NETWORKS SO MANY IN FACT THAT SOME GROUPS HAVE STOPPED SIGNING UP NEW PHYSICIANS AND THAT'S STARTING TO SPAWN GRUMBLING FROM DOCTORS WHO CAN'T GET IN IT IS A CONFUSED TUMULTUOUS TIME SAYS LOUIS GOODMAN THE TEXAS MEDICAL ASSOCIATION'S DIRECTOR OF MEDICAL ECONOMICS 9312310004 931103 TEXAS JOURNAL HOW CAN DOWNTOWN DALLAS BE SAVED SOME SAY LESS CRIME SOME SAY MORE TREES SOME SAY FORGET IT BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL THINGS JUST KEEP GETTING WORSE ATLANTIC RICHFIELD CO'S ANNOUNCEMENT LAST WEEK THAT ITS ARCO OIL & GAS CO UNIT PLANS TO CLOSE ITS DALLAS HEADQUARTERS WITH ITS 700 DOWNTOWN JOBS WAS SIMPLY THE LATEST BLOW JUST A COUPLE OF WEEKS EARLIER TRANSAMERICA INSURANCE GROUP DECIDED TO RELOCATE ITS NATIONAL SUPPORT CENTER FROM CALIFORNIA TO IRVING REBUFFING DALLAS'S ENTREATIES TO MOVE DOWNTOWN A RIOT DURING THE DALLAS COWBOYS' SUPERBOWL PARADE THE ABDUCTION AND MURDER OF A PLANO STOCKBROKER LEAVING HIS DOWNTOWN DALLAS OFFICES THE STRUGGLES OF RESTAURANTS IN DALLAS'S WEST END IT ALL ADDS UP AND IT ALL LEAVES A LOT OF PEOPLE ASKING THE SAME QUESTION CAN DOWNTOWN DALLAS BE SAVED EVEN BEFORE ARCO'S ANNOUNCEMENT DALLAS HAD THE HIGHEST OFFICEVACANCY RATE 358 OF ANY CITY IN THE NATION AND WHILE OTHER TEXAS CITIES ARE ALSO STRUGGLING DALLAS WHICH HAS LITTLE SURROUNDING LAND TO ANNEX THAT WOULD INCREASE ITS TAX BASE IS PARTICULARLY DEPENDENT ON THE HEALTH OF ITS CENTRAL BUSINESS DISTRICT THE ANSWER SOME SAY THERE ISN'T ONE THAT DOWNTOWN SHOULD SIMPLY AGE GRACEFULLY AND ACCEPT ITS FATE OTHERS TRY TO PUT A POSITIVE SPIN ON THE ARCO LOSS ARGUING THAT THE CITY NEEDS A BIG BLOCK OF EMPTY SPACE TO ATTRACT A TENANT THAT MIGHT WANT ITS NAME ON THE BUILDING DALLAS IS SEARCHING FOR ANSWERS AS WELL THE CITY IS IN THE MIDST OF HAMMERING OUT DALLAS PLAN A SWEEPING 30YEAR BLUEPRINT FOR URBAN RENEWAL NEXT MONTH THE CITY WILL SEEK BIDS FOR A PUBLIC/PRIVATE PARTNERSHIP TO BUILD UP TO 5000 UNITS OF RESIDENTIAL HOUSING IN AND NEAR DOWNTOWN AND DALLAS AREA RAPID TRANSIT IS CONSTRUCTING A LIGHT RAIL LINE THAT WILL SERVE THE INNER CITY THE QUESTION OF WHAT TO DO ABOUT DALLAS WAS POSED TO AN ARRAY OF BUSINESS AND CIVIC LEADERS ACADEMICS AND OTHERS HERE ARE SOME OF THEIR SUGGESTIONS IF I HAD TO NAME A KEY IT WOULD BE TO MAKE THE SURROUNDING NEIGHBORHOODS MORE ATTRACTIVE THAN THE FAROUT NEIGHBORHOODS MAKE THEM SAFE AND CLEAN SAYS HOUSTON'S MAYOR BOB LANIER WHOSE EFFORTS TOWARD INNERCITY REVITALIZATION HAVE ATTRACTED NATIONAL ATTENTION IT'S LIKE A BUSINESS YOU'RE LOSING BUSINESS TO FOLKS 20 MILES OUT MR LANIER SAYS WE TALKED TO OUR CUSTOMERS AND SAW WHY THEY WERE LEAVING AND SAW WHAT WE COULD FIX WHAT MR LANIER DID WAS TO FUNNEL PUBLICTRANSIT DOLLARS INTO NEIGHBORHOOD ROAD SIDEWALK AND DRAINAGE REPAIRS FREEING UP MONEY FOR MORE POLICE PROTECTION IN HIS FIRST TERM MR LANIER FOCUSED ON 14 NEIGHBORHOODS A YEAR EQUALLY CRUCIAL MR LANIER SAYS IS TO RESOLVE RACIAL CONFLICTS AMONG OTHER THINGS HOUSTON HAS MADE SURE THAT MORE THAN HALF OF NEW POLICE OFFICERS ARE FROM MINORITY GROUPS THE SINGLE LARGEST VARIABLE IS HOW WE GET ALONG WITH EACH OTHER SAYS MR LANIER AND HOW WELL WE DO AS A MULTIETHNIC SOCIETY THE TURNING POINT WAS WHEN WE PUT IN THE MOVIE THEATER SAYS ED BASS WHO HAS INVESTED MILLIONS OF DOLLARS INTO THE REVITALIZATION OF DOWNTOWN FORT WORTH MR BASS SAYS COMPARISONS BETWEEN DALLAS AND THE MUCH SMALLER FORT WORTH ARE DIFFICULT BUT HIS REVITALIZATION EFFORTS HAVE FOCUSED ON INTEGRATING HOUSING SHOPPING OFFICES AND ENTERTAINMENT DALLAS IS SO BIG IT DIFFUSES EVERYTHING MR BASS SAYS THE WEST END IS A BIG HIT IN THE DOWNTOWN IN THE EVENING TIME BUT THE REST IS DESERTED WE HAVE IT ALL INTEGRATED BUT NONE OF THIS WOULD HAVE WORKED SAYS MR BASS HAD IT NOT BEEN FOR THE CLOUT BEHIND THE EFFORTS OUR MEMBERS WERE THE CEOS OF ALL THE IMPORTANT COMPANIES AND BANKS DOWNTOWN HE SAYS THEY DIDN'T SEND THEIR WHATEVER GUY IT WAS THE CEOS THEMSELVES THAT GAVE THE ORGANIZATION TREMENDOUS POWER WAYNE B SWEARINGEN PRESIDENT OF BARCLAY COMMERCIAL/ONCOR INTERNATIONAL A REALESTATE BROKERAGE FIRM IN DALLAS INSISTS THAT DALLAS IS NOT IN AS BAD A SHAPE AS A LOT OF PEOPLE SAY IT'S THE BEST KEPT SECRET OF ALL IN THE BROKERAGE BUSINESS WE SEE IT AS AN OPPORTUNITY WE SHOULD TRY TO CHANGE ARCO'S MIND SAYS JOHN S BAEN ASSOCIATE PROFESSOR OF REAL ESTATE AT THE UNIVERSITY OF NORTH TEXAS DENTON I THINK THEY'VE MADE A TERRIBLE STRATEGIC DECISION I THINK THE WHOLE PROBLEM IS WHERE ARE YOUR KIDS GOING TO GO TO SCHOOL YOU HAVE TO HAVE A SAFE MODERN UPTODATE EDUCATIONAL SYSTEM TO LIVE DOWNTOWN YOU JUST CAN'T HAVE THE NEWLYWEDS THE NEARLYDEADS AND THE URBAN POOR DOWN THERE YOU NEED A TOTAL COMMUNITY THAT SAID MR BAEN ISN'T OPTIMISTIC I DON'T KNOW IF THERE'S ANYTHING YOU CAN DO QUITE FRANKLY I BELIEVE THE REASON DOWNTOWN CANNOT BE SAVED WITHOUT BILLIONS POURED DOWN THERE IS ALL THE FREEWAYS LEAD AWAY FROM DOWNTOWN AND ALLOW PEOPLE TO GO TO THE SUBURBS WE NEED TO AGE GRACEFULLY NOT GRUMBLE AND DO THE BEST WE CAN TO PRESERVE THE CULTURE THE ARCHITECTURE AND THE ENVIRONMENT OF THE CITY CHARLES BROCKMAN A PROFESSIONAL COMEDIAN IN PLANO DOESN'T THINK DALLAS'S SITUATION IS ANYTHING TO BE LAUGHED AT SOME THINGS YOU MAKE THEM FUNNY AND SOME THINGS HIT REAL CLOSE TO HOME SAYS MR BROCKMAN TO ME THIS IS KIND OF SERIOUS THE LADIES HATE TO GO DOWNTOWN AFTER DARK IT LOOKS KIND OF EERIE WITH THOSE BIG BEAUTIFUL BUILDINGS AND THERE'S JUST NOBODY AROUND IT'S DEAD AFTER DARK JOEL GARREAU AUTHOR OF EDGE CITY LIFE ON THE NEW FRONTIER SAYS THAT THE TROUBLE WITH DALLAS IS IT'S JUST FLAT OVERBUILT THERE ARE ONLY THREE MAJOR DOWNTOWNS IN THIS COUNTRY DALLAS DETROIT AND MANHATTAN THAT ARE IN THAT KIND OF ROUGH SHAPE MR GARREAU BASED IN WASHINGTON DC ADDS I THINK THE SOLUTION IS TO PLAY TO YOUR STRENGTHS THE NO 1 INDUSTRY IN A LOT OF THESE DOWNTOWNS IS TOURISM MR GARREAU BELIEVES THAT THE BEST THINGS ABOUT A DOWNTOWN CAN'T BE MEASURED BY OFFICEVACANCY RATES IT'S THE SQUISHY STUFF LIKE CIVILIZATION SOUL COMMUNITY HE SAYS AND THOSE OFFICEVACANCY RATES FOR 86 YEARS NEIMAN MARCUS HAS STUCK BY DOWNTOWN DALLAS THE SITE OF ITS ORIGINAL STORE GERALD BARNES GENERAL MANAGER OF THE DOWNTOWN DALLAS STORE SAYS SIDEWALK EXPANSION TREE PLANTINGS AND PLANS FOR DOWNTOWNAREA HOUSING ARE ALL STEPS IN THE RIGHT DIRECTION I THINK FREE PARKING IS ANOTHER IMPORTANT PIECE MR BARNES SAYS WE OFFER COMPLIMENTARY VALIDATED PARKING I THINK FOR THE AREA TO GROW THAT'S GOING TO HAVE TO BE EXTENDED TO THE OTHER RETAILERS THERE'S GOING TO HAVE TO BE A GARAGE BUILT SOMEWHERE THE ONE THING THAT I RECOMMEND IN ANY SITUATION IS MORE REALLY PUBLIC RESTROOMS SAYS LARS EIGHNER OF AUSTIN WHOSE BOOK TRAVELS WITH LISBETH CHRONICLES HIS LIFE WITH HIS DOG LISBETH AS A HOMELESS PERSON THERE'S A BIOLOGICAL NECESSITY WORKING HERE IF THE PUBLIC RESTROOMS CAN'T BE USED FOR THAT PURPOSE THEN THE STREETS AND ALLEYS WILL BE I REALLY DON'T KNOW WHAT YOU DO SAYS 79YEAROLD TRAMMELL CROW WHOSE COMPANIES DEVELOPED SIX BUILDINGS DOWNTOWN MR CROW CITES HIS CONTROVERSIAL ART PROJECT 70 BRONZE STEERS PLANNED FOR PIONEER PLAZA AS THE TYPE OF BEAUTIFICATION EFFORT THAT CAN BRING PEOPLE BACK I THINK WE SHOULD DO EVERYTHING WE CAN TO MAKE DOWNTOWN DALLAS AS ATTRACTIVE AS WE CAN SAYS MR CROW IT'S AN ACCUMULATION OF 1000 THINGS BUT EVERY GOOD THING YOU DO HELPS J THOMAS BLACK VICE PRESIDENT FOR RESEARCH AT THE URBAN LAND INSTITUTE IN WASHINGTON DC SAYS THE CITY SHOULD OFFER INCENTIVES TO DOWNTOWN BUSINESSES TO PATRONIZE ONE ANOTHER IT'S IN THEIR ECONOMIC SELFINTEREST SAYS MR BLACK WHO IS CONDUCTING A STUDY OF THE DOWNTOWN DALLAS OFFICE MARKET CONVINCE DOWNTOWN BUSINESSES THAT IF EVERYTHING ELSE IS EQUAL THEY OUGHT TO PURCHASE THEIR SUPPLIES FROM OTHER BUSINESSES LOCATED IN THE CITY I GUESS I'VE GOT A DIFFERENT VIEW OF DALLAS THAN I HAD BEFORE SAYS CAROL KADER WHOSE HUSBAND OF 27 YEARS RONALD KADER WAS ABDUCTED AND MURDERED WHILE WALKING TO HIS CAR AFTER WORK IN SEPTEMBER THE PROBLEM IS OF SUCH MAGNITUDE I DIDN'T REALIZE THERE WERE GANGS OF YOUNG PEOPLE THAT DID NOTHING BUT PREY UPON WHOMEVER LOOKED LIKE A GOOD VICTIM I DON'T THINK THERE'S A PAT ANSWER YOU CAN'T SAY MORE POLICE WILL FIX IT THERE ARE SO MANY FACETS TO IT SHORT OF OVERHAULING THE WHOLE JUDICIAL SYSTEM FORCING PARENTS TO BE RESPONSIBLE I CAN'T EVEN BEGIN TO GUESS WHERE YOU'D START THE NEWS THIS YEAR IN 1993 HAS BEEN ALL GOOD SAYS STEVE BARTLETT MAYOR OF DALLAS WE HAVE NOT LOST ANY EMPLOYER IN DOWNTOWN IN 1992 WE STOPPED OUTMIGRATION ARCO DIDN'T MOVE OUT IT CLOSED MR BARTLETT TICKS OFF A STRING OF INITIATIVES THAT ARE IMPROVING LIFE DOWNTOWN WE'VE CUT VIOLENT CRIME IN HALF IN DOWNTOWN DALLAS IT'S A SAFE PLACE WE FINISHED OUR CONVENTION CENTER WE'RE BUILDING A MAIN STREET MALL WITH STREET LIGHTS TEXTURED SIDEWALK PAVING LANDSCAPING ADD THAT TO FIVE ACRES OF PUBLIC ART UNDER CONSTRUCTION WE HAVE THE MOST COMPETITIVE REALESTATE PRICES IN THE COUNTRY FOR CLASS A SPACE THE TIME TO GET IN IS NOW OTHER THAN ARCO WE SEEM TO BE ON A ROLL SEE RELATED LETTERS TEXAS JOURNAL LETTERS TO THE EDITOR WSJ NOV 10 1993 SEE RELATED LETTERS TEXAS JOURNAL LETTERS TO THE EDITOR SAVING DALLAS WSJ NOV 17 1993 SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR WSJ DEC 8 1993 9311030072 9311100023 9311170025 9312090013 YY93 MM11 YY93 MM12 9312310002 931103 TEXAS JOURNAL ECONOMIC FOCUS AS RELIABLE AS THE CRANES RETURN OF WINTER TEXANS BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL MCALLEN EVERY YEAR ABOUT THIS TIME FOR AS FAR BACK AS PEOPLE CAN REMEMBER BUSINESS OWNERS HERE HAVE BEEN SAYING THE SAME THING THANK GOD FOR WINTER TEXANS LITTLE WONDER YEAR AFTER YEAR TENS OF THOUSANDS OF ELDERLY MIDWESTERNERS STREAM INTO THE RIO GRANDE VALLEY FOR THE WINTER THEY SPEND AN ENORMOUS AMOUNT OF MONEY PUMPING MORE THAN 200 MILLION A SEASON INTO EVERYTHING FROM RECREATIONALVEHICLE PARKS TO SHOPPING MALLS TO HOSPITALS AND PERHAPS THE BEST THING IN A STATE THAT HAS SEEN PLENTY OF ECONOMIC UPS AND DOWNS IN RECENT YEARS THE WINTER TEXANS ARE NEARLY AS RELIABLE AS THE SANDHILL CRANES THAT WINTER HERE THEY'RE VERY CONSISTENT IN THEIR HABITS SAYS VERN VINCENT A PROFESSOR OF QUANTITATIVE METHODS AT THE UNIVERSITY OF TEXASPAN AMERICAN WHOSE NEW SURVEY SHOWS THAT MORE THAN 70 HAVE BEEN TO THE VALLEY AT LEAST SIX TIMES WE KNOW THEY'LL COME BACK NEXT YEAR NOT THAT ANYBODY IS TAKING THE RETIREES FOR GRANTED A DECADE AGO THE MCALLEN CHAMBER OF COMMERCE DRASTICALLY CUT ITS BUDGET FOR ADVERTISING AND TRADE SHOWS FIRSTTIME VISITORS IMMEDIATELY FELL AND THE BUDGET WAS RESTORED MOREOVER COMPETITION IS STIFF NOT ONLY FROM OTHER TRADITIONAL WINTERING SPOTS SUCH AS ARIZONA AND FLORIDA BUT INCREASINGLY FROM OTHER TEXAS CITIES MIDLAND AND ODESSA FOR INSTANCE CLAIM TO HAVE ATTRACTED MORE THAN 1000 RETIREE HOUSEHOLDS SINCE 1987 SUCH ALTERNATIVES MAY BE STARTING TO TAKE THEIR TOLL ACCORDING TO THE UNIVERSITY OF TEXAS SURVEY THE NUMBER OF WINTER TEXANS LIVING IN TRAILER PARKS HOTELS OR APARTMENTS IN THE RIO GRANDE VALLEY IN FEBRUARY ROSE JUST 23 FROM THE PRIOR YEAR TO 89000 THAT'S ABOUT HALF THE AVERAGE ANNUAL GAINS OF 4 DURING THE PREVIOUS SEVEN YEARS AND THE WORST SHOWING SINCE 1990 WHEN THE GULF WAR AND FEARS OF GASOLINE RATIONING KEPT MANY RV ENTHUSIASTS CLOSE TO HOME BUT AS THIS SEASON DAWNS LOCAL BUSINESSES ARE OPTIMISTIC RELYING ON FORECASTS OF A COLDER WINTER UP NORTH AND ALTHOUGH THIS IS A DELICATE TOPIC THE RASH OF TOURIST MURDERS IN FLORIDA WE HAVEN'T BEEN TRADING ON THAT BECAUSE OUR ATTITUDE IS THERE BUT FOR THE GRACE OF GOD ' SAYS CHUCK SNYDER DIRECTOR OF THE MCALLEN CONVENTION & VISITORS BUREAU STILL HE SAYS PEOPLE ON THE CUSP WHO WOULD HAVE TO TRAVEL ABOUT THE SAME DISTANCE TO GO TO FLORIDA OR TEXAS ARE STARTING TO TAKE A SECOND LOOK AT TEXAS THE VALLEY'S EMERGENCE AS A RETIREE HAVEN HAS ITS ROOTS DEEP IN HISTORY AROUND THE TURN OF THE CENTURY A FEW LAND SPECULATORS BOUGHT UP BIG TRACTS ALONG THE MEXICAN BORDER AND SOLD PLOTS TO MIDWESTERNERS ESPECIALLY FARMERS THE PITCH BUYERS WOULD BE ABLE TO GROW VEGETABLES OR CITRUS DURING MONTHS WHEN THEIR FARMS UP NORTH WERE SNOWBOUND HUNDREDS OF MIDWESTERNERS SETTLED IN THE VALLEY ESTABLISHING A LINK THAT WOULD LATER PROVE PROFITABLE INDEED WHEN TRAVEL TRAILERS BECAME POPULAR SOME OF THE VETERANS KNOCKED DOWN ORANGE TREES LAID DOWN CONCRETE PADS AND OPENED TRAILER PARKS FOR THEIR OLD NEIGHBORS NOW THOSE PARKS HAVE BECOME RESORTS WITH SWIMMING POOLS GOLF COURSES CRAFTS CLASSES AND MOST IMPORTANT SQUARE DANCING WE BILL OURSELVES AS THE SQUAREDANCE CAPITAL OF THE WORLD SAYS TOMMY JOYNER EXECUTIVE DIRECTOR OF THE MCALLEN CHAMBER OF COMMERCE YOU CAN SQUARE DANCE IN THE VALLEY EVERY NIGHT SEVEN NIGHTS A WEEK HAPPILY FOR THE LOCAL ECONOMY THE VISITORS HAVE MORE MONEY TO SPEND THAN THEY DID SAY 10 YEARS AGO THIS YEAR MONTHLY EXPENDITURES ARE EXPECTED TO CLIMB TO ABOUT 1000 FROM 934 LAST YEAR SAYS DR VINCENT NOT INCLUDING AVERAGE ONETIME PURCHASES OF 2100 A SEASON FOR DURABLE GOODS AND ONE RECENT TREND IF IT TAKES OFF COULD PROVIDE A BIG ECONOMIC BOOST SOME RETIREES HAVE BEGUN TRADING IN THEIR RV SLOTS FOR SOCALLED GARDEN HOUSES COTTAGES OF 800 SQUARE FEET AND UP THAT COST FROM 40000 TO MORE THAN 100000 GERALDINE KAPLUCK A 72YEAROLD FORMER FACTORY WORKER FROM RACINE WIS JUST MOVED INTO A NEATLYKEPT SUBDIVISION WITH HER HUSBAND A RETIRED CLERK WE TRIED FLORIDA WE TRIED ARIZONA AND WE JUST DECIDED WE LIKE THE VALLEY BETTER SHE SAYS BIG VS SMALL SMALL TEXAS CITIES ARE DOING BETTER THAN BIG ONES WHEN IT COMES TO GENERATING NEW JOBS ACCORDING TO THE LATEST BLUE CHIP JOB GROWTH UPDATE PUBLISHED BY THE ECONOMIC OUTLOOK CENTER AT ARIZONA STATE UNIVERSITY SEVEN TEXAS CITIES WERE AMONG THE 20 US CITIES WITH LESS THAN 750000 WORKERS THAT HAD THE GREATEST PERCENTAGE EMPLOYMENT INCREASE FROM AUGUST 1992 TO AUGUST 1993 KILLEENTEMPLE WAS RANKED FIFTH WITH 512 GROWTH BEHIND ENID OKLA PROVOOREM UTAH BOISE CITY IDAHO AND SALT LAKE CITYOGDEN UTAH MCALLENEDINBURGMISSION WAS SIXTH WITH 481 GROWTH TIED WITH VICTORIA BRYANCOLLEGE STATION WAS NINTH WITH 469 LAREDO WAS 12TH WITH 419 GALVESTONTEXAS CITY WAS 17TH WITH 355 AND AUSTIN WAS 20TH WITH 333 FOR METROPOLITAN MARKETS WITH MORE THAN 750000 WORKERS DALLAS RANKED FIFTH WITH 199 GROWTH BEHIND ATLANTA MIAMIHIALEAH DENVER AND PHOENIX HOUSTON PLACED 14TH WITH 037 JOB GROWTH 9312310001 931103 TEXAS JOURNAL SMALL OIL VENTS FRUSTRATIONS AT O'LEARY BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL WHEN ENERGY SECRETARY HAZEL O'LEARY DESCRIBED INDEPENDENT OIL AND GAS PRODUCERS LAST WEEK AS A MA AND PA BUSINESS FOR WHICH I HAVEN'T GOT THE ANSWER SHE HAD TO BE SURPRISED BY THE VIRULENT REACTION IN TEXAS BUT THE RESPONSE WAS SO OUTRAGED BECAUSE PEOPLE WEREN'T REACTING JUST TO WHAT SHE SAID MS O'LEARY BORE THE BRUNT OF INDEPENDENT OIL PRODUCERS' GROWING FRUSTRATION WITH THE CLINTON ADMINISTRATION FOR WHICH MANY ONCE HAD HIGH HOPES THOUGH THE ADMINISTRATION IS STILL WEEKS AWAY FROM RELEASING A PLAN TO REDUCE US RELIANCE ON FOREIGN ENERGY MANY TEXAS INDEPENDENT PRODUCERS HAVE ALREADY GIVEN UP HOPE THAT IT WILL CONTAIN ANY OF THE MAJOR PROVISIONS THEY LOBBIED FOR SUCH AS AN OILPRICE FLOOR OR TAX INCENTIVES TO DRILL NEW WELLS IN THE US PRODUCERS WHO CROSSED PARTY LINES TO SUPPORT MR CLINTON LAST YEAR COMPLAIN THAT THE ADMINISTRATION IS CONCENTRATING MUCH MORE ON HEALTH CARE AND TRADE THAN ON ENERGY SAYS TEXAS RAILROAD COMMISSIONER MARY SCOTT NABERS I AM TOTALLY BAFFLED THAT PEOPLE IN WASHINGTON DON'T SEE THE IMPORTANCE OF THE INDEPENDENT OIL AND GAS PRODUCERS MS O'LEARY WHOSE COMMENT CAME IN LONDON IN RESPONSE TO A REPORTER'S QUESTION ABOUT US PRODUCERS LATER SAID THAT SHE HAD BEEN MISINTERPRETED THAT SHE SIMPLY HADN'T WANTED TO GIVE DETAILS OF THE ENERGY PLAN BEFORE ITS RELEASE BUT THROUGHOUT THE OIL PATCH HER COMMENT HIT A COUPLE OF NERVES MANY PEOPLE TOOK THE MA AND PA CHARACTERIZATION AS A DEROGATORY REFERENCE TO A BIG TECHNOLOGICALLY SOPHISTICATED INDUSTRY AND HER STATEMENT THAT SHE DIDN'T HAVE THE ANSWER FOR IT WAS SEEN AS SHOWING WASHINGTON'S LACK OF CONCERN FOR INDEPENDENT PRODUCERS IT DIDN'T HELP THAT A WIRESERVICE ARTICLE PARAPHRASED MS O'LEARY AS CALLING THE INDEPENDENTS A DYING BREED THOUGH SHE NEVER USED THOSE WORDS IN RESPONSE MS NABERS AND ANOTHER TEXAS RAILROAD COMMISSIONER BARRY WILLIAMSON INVITED MS O'LEARY TO TEXAS TO LEARN MORE ABOUT THE INDEPENDENTS' PROBLEMS MR WILLIAMSON ALSO PENNED A BITING POEM TO THE ENERGY SECRETARY INDEPENDENT PRODUCERS DISTINGUISHED FROM THE MAJORS BY THE FACT THAT THEY DON'T HAVE REFINING AND PIPELINE OPERATIONS SAY THEY SHOULD HAVE MORE POLITICAL CLOUT BECAUSE THEY SUPPLY NEARLY A THIRD OF THE OIL CONSUMED IN THE US THAT THEY ARGUE MAKES THEM STRATEGIC PLAYERS IN THE BATTLE TO REDUCE IMPORTS MOREOVER THOUGH THEIR NUMBERS HAVE DROPPED BY NEARLY HALF IN THE PAST DECADE THEY STILL ACCOUNT FOR 8000 COMPANIES INCLUDING 5000 IN TEXAS WHILE MAJOR OIL COMPANIES FOCUS EXPLORATION EFFORTS OVERSEAS IN HOPES OF MAJOR FINDS MANY OF THE INDEPENDENTS ARE EKING OUT LIVINGS ON MORE MODEST DOMESTIC FIELDS A TASK THAT GETS HARDER EVERY YEAR WEAK OIL PRICES WEST TEXAS INTERMEDIATE CRUDE IS RUNNING 3 TO 4 A BARREL BELOW A YEAR AGO MAKE MANY INDEPENDENTS FEEL ESPECIALLY VULNERABLE BUT OIL INTERESTS EVEN SMALLER ONES ARE UNPOPULAR WITH THE AMERICAN PUBLIC ESPECIALLY AS THEY RUN UP AGAINST ENVIRONMENTAL CONCERNS THE PUBLIC PERCEPTION IS THAT THE INDUSTRY IS COMPOSED OF HUGE COMPANIES WITH NO HEART OR FILTHYRICH INDEPENDENTS WITH NO SENSE SAYS OIL PRODUCER ERNIE ANGELO FORMER MAYOR OF MIDLAND SO CONGRESS AND US PRESIDENTS HAVE HESITATED TO RALLY BEHIND PRODUCERS MANY INDEPENDENT PRODUCERS LAST YEAR HOPED FOR MORE FROM MR CLINTON ESPECIALLY AFTER HE TALKED DURING THE CAMPAIGN ABOUT THE NEED TO REDUCE DEPENDENCE ON FOREIGN ENERGY INDEED 100 INDUSTRY EXECUTIVES ABOUT A THIRD OF THEM FROM TEXAS PUBLICLY SUPPORTED THE DEMOCRAT THOUGH MANY WERE REPUBLICANS BUT SO FAR MR CLINTON'S BOLDEST ACTION ON ENERGY HAS BEEN RAISING THE FEDERAL GASOLINE TAX WHICH ANGERED JUST ABOUT EVERYBODY IN THE OIL PATCH MORE BAD NEWS IS PROBABLY IN STORE WITH THE ADMINISTRATION'S DOMESTIC ENERGY INITIATIVE WHICH AIMS TO INCREASE PRODUCTION AND CREATE JOBS IN THE NATION'S OIL AND GAS INDUSTRIES THOUGH THE PLAN WAS DUE OUT TWO MONTHS AGO THE DEPARTMENT OF ENERGY HASN'T RELEASED A FINAL DRAFT BUT AN EARLIER VERSION SUGGESTS INDEPENDENTS WON'T GET MUCH OF WHAT THEY HAVE SOUGHT ENERGY DEPARTMENT SPOKESMAN JOEY LUCAS SAYS IMPORT FEES WHICH WOULD EFFECTIVELY RAISE THE PRICE PAID FOR FOREIGN CRUDE WERE REJECTED EARLY ON BECAUSE THEY WOULD HURT CONSUMERS AND ANOTHER ITEM ON INDEPENDENTS' AGENDA OPENING AN ARCTIC WILDLIFE REFUGE TO DRILLING WOULD FACE FIERCE ENVIRONMENTAL OPPOSITION BROAD TAX INCENTIVES FOR DRILLING WOULD WIDEN THE FEDERAL DEFICIT ALL THAT WAS LEFT OF THE TAX BREAKS WAS A CREDIT FOR THE USE OF ADVANCED COMPUTER TECHNOLOGY WHICH INDEPENDENTS SAY IS A PRETTY SMALL BONE IT'S NO DIFFERENT THAN WHEN RONALD REAGAN WAS IN THE WHITE HOUSE OR GEORGE BUSH SAYS RAYMOND PLANK CHAIRMAN OF APACHE CORP AN INDEPENDENT BASED IN HOUSTON MR PLANK SUPPORTED MR CLINTON LAST FALL BUT NOW SAYS HE IS DISAPPOINTED THE ADMINISTRATION HAS HAD OTHER PRIORITIES AND THAT'S PRETTY REGRETTABLE SECRETARY HAZEL O'LEARY WRITTEN BY TEXAS RAILROAD COMMISSIONER BARRY WILLIAMSON WITH HELP FROM STAFFERS LINDSEY DINGMORE AND PAT WOOD SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR MISPLACED ENERGY WSJ NOV 17 1993 9311030066 9311170006 YY93 MM11 YY93 MM12 9312300175 931217 CRIME SOLUTION LOCK'EM UP BY BEN WATTENBERG THANKS TO ANGRY AMERICAN VOTERS THE CRIME ISSUE IS PROMINENT AGAIN AS IT OUGHT TO BE IT IS OUR BIGGEST PROBLEM AND THERE IS SOMETHING WE CAN DO ABOUT IT IF THE HOUSE AND SENATE CAN AGREE ON A HISTORIC LBJSTYLE CRIME STRATEGY NOW BEING DEBATED ON CAPITOL HILL PUTATIVE SOLUTIONS TO THE CRIME PROBLEM ARE ROLLING FORTH LIKE A MIGHTY STREAM THERE IS GUN CONTROL AND DRUG REHABILITATION FOR CRIMINALS AND GREATER USE OF THE DEATH PENALTY AND HABEAS CORPUS REFORM AND MORE COPS ACTIVE IN COMMUNITY POLICING AND BOOT CAMPS THE LIST GOES ON AND ON AS IT HAPPENS I APPROVE OF MOST OF THE ABOVE CATALOG I WOULD LIKE TO SEE MUCH OF IT ENACTED INTO LAW BUT THERE IS THIS SAD FACT WE DON'T KNOW THAT THESE PROPOSALS WILL SERIOUSLY CUT THE CURRENT SCARY RATE OF VIOLENT CRIME THE EXISTING STUDIES ARE THIN AND OFTEN CONTRADICTORY TWO THINGS DO SEEM FAIRLY CLEAR FIRST CRIMINOLOGISTS AND CRIME POLICY WONKS DON'T KNOW MUCH ABOUT WHAT WORKS NO SURPRISE SECOND THE THING THAT ALMOST EVERYONE INTUITIVELY KNOWS IS SO SIMPLE THAT IT BARELY NEEDS REPEATING EXCEPT THAT IT IS OFTEN PURPOSELY IGNORED PARTICULARLY ALAS BY THE CLINTON ADMINISTRATION IT IS THIS A THUG IN PRISON CANNOT SHOOT YOUR SISTER OF COURSE THIS IS NOT A NEW THEORY BUT IT WAS RESTATED WITH CLARITY IN 1992 IN A SHORT PUBLICATION TITLED THE CASE FOR MORE INCARCERATION PUBLISHED BY THE JUSTICE DEPARTMENT IT SHOWED THAT INCARCERATION IS CHEAPER THAN LETTING A CRIMINAL OUT ON THE STREETS THAT ALTHOUGH THE CRIME RATE IS HORRIFICALLY HIGH THE ACTUAL RATE OF INCREASE OF VIOLENT CRIME HAS BEEN GOING DOWN SINCE WE STARTED PUTTING MORE PEOPLE IN PRISON THAT MUCH VIOLENT CRIME IS COMMITTED BY PEOPLE WHO HAVE ALREADY BEEN IN THE CRIMINAL JUSTICE SYSTEM THAT IS PEOPLE WHO HAVE BEEN ARRESTED CONVICTED OR IMPRISONED OR WHO ARE ON PROBATION OR PAROLE THAT PRISON TIME SERVED DESPITE SOME MANDATORY MINIMUM SENTENCING LAWS HAS GOTTEN SOMEWHAT SHORTER THAT PRISONS DO NOT CREATE CRIMINALS THAT BLACKS AND WHITES ARE TREATED EQUALLY AND THAT THE VAST MAJORITY OF LAWABIDING AFRICANAMERICANS WOULD GAIN MOST FROM MORE INCARCERATION OF CRIMINALS BECAUSE AFRICANAMERICANS ARE MORE LIKELY TO BE THE VICTIMS OF VIOLENT CRIME HAPPILY THE CONCEPT OF GETTING THUGS INTO PRISON AND KEEPING THEM THERE LONGER IS IN THE NEW CRIME BILL THAT RECENTLY PASSED THE SENATE BY A VOTE OF 954 MORE REMARKABLE IS THE MANNER IN WHICH THE CONCEPT IS EMBEDDED IN THE SENATE BILL UNTIL NOW THE RAP ON ALMOST ALL FEDERAL CRIME BILLS HAS BEEN THE FEDS CAN'T DO MUCH AFTER ALL VIOLENT CRIME IS PRINCIPALLY A STATE ISSUE QUITE SO 97 OF VIOLENT CRIMINALS ARE IN STATE PRISONS MOREOVER SOME OF WHAT THE FEDS HAVE DONE TO STATE PRISONS HAS BEEN HARMFUL FEDERAL COURT RULINGS HAVE DETERMINED THAT MANY STATE PRISONS ARE OVERCROWDED THAT HAS MADE IT DIFFICULT FOR STATE JUDGES TO GET CRIMINALS BEHIND BARS AND HAS BOOSTED THE REVOLVING DOOR JUSTICE THAT ENCOURAGES PAROLE BOARDS TO LET CRIMINALS OUT OF PRISON EARLY THAT IS A SOCIAL TRAGEDY THE TYPICAL VIOLENT OFFENDER IN STATE PRISON SERVES ONLY 40 OF HIS SENTENCE THE TYPICAL OFFENDER OUT ON THE STREET COMMITS 12 SERIOUS CRIMES A YEAR EXCLUSIVE OF DRUG CRIMES ACCORDING TO A BROOKINGS INSTITUTION STUDY WHICH ESTIMATE IS LOWER THAN MUCH OTHER SCHOLARSHIP ON THE MATTER IF A THUG WITH A 10YEAR SENTENCE SERVES ONLY FOUR YEARS HE WILL COMMIT ABOUT 70 VIOLENT CRIMES DURING HIS UNSERVED TIME INCLUDING IN THEORY THE MURDER OF MICHAEL JORDAN'S FATHER AND OF 12YEAROLD POLLY KLAAS THE SENATE CRIME BILL DEALS WITH THIS STATEFEDERAL DILEMMA BY GOING BACK TO THE LBJSTYLE CARROTANDSTICK APPROACH INTERESTINGLY IT HAS BEEN PUSHED MOST VIGOROUSLY BY CONSERVATIVE REPUBLICANS THE FEDS PLEDGE TO BUILD A SERIES OF REGIONAL PRISONS WHICH MAY BE NEW ONES OR PERHAPS REMODELED MILITARY BASES THE BILL WOULD PROVIDE BETWEEN 50000 AND 100000 NEW PRISON SPACES OVER FIVE YEARS THE STATES IN TURN ARE INVITED TO PLACE THEIR PRISONERS IN THESE NEW FACILITIES THAT'S THE CARROT THE STICK IS THAT THE FEDS WON'T HELP UNLESS THE STATES REFORM THEIR CRIMINAL CODES IN CERTAIN CRITICAL WAYS THE MOST IMPORTANT ITEM IS TO STIPULATE THAT VIOLENT CRIMINALS SERVE 85 OF THEIR TERMS NOW A CASE CAN BE MADE THAT THE SENATE BILL IS THE FIRST STEP TOWARD FEDERALIZING THE STATE PRISON SYSTEMS AND THAT THE FEDERAL ROLE WILL EXPAND OVER TIME CARROT & STICKING IS WHAT THE FEDS DID WITH CERTAIN ASPECTS OF THE EDUCATIONAL SYSTEM TRANSPORTATION THE ENVIRONMENT AND MUCH MORE OFTEN OFFERING NO PARTICULAR EXPERTISE WHILE INTRUDING ON STATE OPERATIONS THAT SOMETIMES DIDN'T NEED HELP BUT PRISONS ARE DIFFERENT THE FEDERAL PRISON SYSTEM AND THE FEDERAL CRIMINAL CODE ARE EXEMPLARY THE STATE SYSTEMS ARE OFTEN DERELICT THE SENATE BILL CAN MAKE THE STATES DO WHAT THEY SHOULD BE DOING ANYWAY AND WHAT THE PUBLIC OVERWHELMINGLY FAVORS IMPRISONING VIOLENT OFFENDERS LONGER TO LOWER THE CRIME RATE THAT'S THE SENATE BILL THE HOUSE ON THE OTHER HAND HAS PASSED ONLY SMALL PIECES OF LEGISLATION AND MAY PASS MORE IN THEORY THERE SHOULD BE A CONFERENCE COMMITTEE REPORT TO RECONCILE THE VERSIONS BUT JACK BROOKS D TEXAS CHAIRMAN OF THE HOUSE JUDICIARY COMMITTEE HAS INDICATED THAT SUCH A CONFERENCE MIGHT BE A LONG WAY OFF EARLIER CRIME BILLS HAVE BEEN GUTTED DILUTED AND TURNED INTO MUSH DURING CONFERENCE NEGOTIATIONS THE ROLE OF THE CLINTON ADMINISTRATION IN THE PRISON ASPECT OF THIS PROCESS HAS BEEN STRANGE FIRST THERE IS NO CLINTON CRIME BILL THERE WAS SUPPOSED TO BE ONE WITH A PROVISION FOR REGIONAL PRISONS THEN THE WHITE HOUSE SAID IT WAS BACKING BOTH SEN JOSEPH BIDEN'S SENATE BILL AND REP BROOKS'S HOUSE BILL MR BIDEN'S HAD SOME RATHER MILD PROVISION FOR REGIONAL PRISONS MR BROOKS'S DIDN'T THEN THE WORD WAS THAT THE WHITE HOUSE WAS BACKING MR BROOKS BECAUSE ATTORNEY GENERAL JANET RENO DIDN'T WANT MORE PRISONS MS RENO LABORS UNDER THE QUAINT BELIEF THAT BY DEPOPULATING OUR PRISONS OF NONVIOLENT OFFENDERS WE CAN THEN REFILL THEM WITH TRULY BAD GUYS BUT 93 OF PRISONERS ARE EITHER VIOLENT OR REPEAT OFFENDERS THE FACT OF THE MATTER IS THAT THE PRESIDENT IS ADMIRABLY HAWKING JUST ABOUT EVERY PART OF THE LEGISLATION MUCH OF IT ON THE PREVENTION SIDE BUT HE REMAINS STUDIOUSLY SILENT ON THE MOST CRITICAL ASPECT OF ALL INCAPACITATING MORE CRIMINALS LONGER WHAT'S GOING ON IT'S SAID THAT LIBERALS OPPOSE MORE MONEY FOR PRISONS WHY CAN THEY STILL POSSIBLY BELIEVE THAT THERE ARE NO BAD BOYS ONLY BAD SOCIETIES IT'S SAID THAT THE BLACK CAUCUS IS IN OPPOSITION BECAUSE IT WILL BE BLACKS WHO WILL DISPROPORTIONATELY SERVE THE EXTRA TIME BUT WHO'S KILLING BLACKS JESSE JACKSON SAID THE OTHER DAY THAT THERE IS NOTHING MORE PAINFUL TO ME THAN TO WALK DOWN THE STREET AND HEAR FOOTSTEPS AND START THINKING ABOUT ROBBERY THEN LOOK AROUND AND SEE SOMEBODY WHITE AND FEEL RELIEVED A KEY WHITE HOUSE AIDE GENE SPERLING IS QUOTED AS SAYING HE'D RATHER SPEND MONEY ON POOR KIDS THAN ON PRISONS BUT POOR KIDS ARE GETTING SHOT AT BY PEOPLE WHO SHOULD BE IN PRISON THE PARENTS OF THOSE POOR KIDS CAN'T GET JOBS IN THE INNER CITY BECAUSE BUSINESSES FLEE FROM CRIME THE IDEA OF REGIONAL PRISONS LINKING THE STATES AND THE FEDS IN A TIME OF DOMESTIC CRISIS CAN BECOME LAW IF MR CLINTON PUSHES THE HOUSE DEMOCRATS TO GET WITH THE PROGRAM HE CAN CLAIM HUGE CREDIT IF HE PUTS HIS SHOULDER TO THE WHEEL AND IT HAPPENS IF IT FAILS THE FAULT WILL BE HIS MR WATTENBERG IS A FELLOW AT THE AMERICAN ENTERPRISE INSTITUTE AND MODERATOR OF THE FORTHCOMING WEEKLY PUBLIC TELEVISION PROGRAM THINK TANK SEE RELATED LETTER LETTERS TO THE EDITOR HOUSE GOP INITIATED REGIONAL PRISON IDEA WSJ DEC 30 1993 9312170182 YY93 MM12 9312300174 931230 CANADA SELLS BONDS WEDNESDAY THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9312300173 931230 MICHAELS STORES SALES ARE UP IRVING TEXAS MICHAELS STORES INC SAID SAMESTORE SALES IN THE FOUR WEEKS ENDED SUNDAY INCREASED 3 FROM THE SAME PERIOD LAST YEAR THE FIGURES INVOLVE STORES OPEN AT LEAST A YEAR THE ARTSANDCRAFTS RETAILER SAID TOTAL SALES GREW 29 TO 987 MILLION FROM 766 MILLION IN DECEMBER 1992 9312300172 931230 INSIGNIA IS BUYING DUDDLESTEN GREENVILLE SC INSIGNIA FINANCIAL GROUP INC SAID IT IS ACQUIRING DUDDLESTEN MANAGEMENT CORP OF HOUSTON BOTH COMPANIES MANAGE RESIDENTIAL AND COMMERCIAL REAL ESTATE TERMS WEREN'T DISCLOSED 9312300171 931230 INTERNATIONAL GERMAN WHOLESALE SALES RISE 4 WIESBADEN GERMANY WHOLESALE SALES ACROSS UNIFIED GERMANY ROSE A REAL OR INFLATIONADJUSTED 4 IN NOVEMBER COMPARED WITH THE SAME MONTH A YEAR AGO THE FEDERAL STATISTICS OFFICE SAID NOVEMBER'S RISE IN GERMAN WHOLESALE SALES TO ABOUT 85 BILLION MARKS 505 BILLION AMOUNTED TO A 2 INCREASE FROM THE SAME MONTH IN 1992 IN NOMINAL OR UNADJUSTED TERMS THE OFFICE SAID 9312300170 931230 WSFS FINANCIAL SAVINGS UNIT WILMINGTON DEL WSFS FINANCIAL CORP SAID IT COMPLETED A 32 MILLION PRIVATE PLACEMENT OF 11 SENIOR NOTES DUE 2005 BRINGING ITS PRIMARY SAVINGS UNIT INTO COMPLIANCE WITH FEDERAL CAPITAL REGULATIONS THE COMPANY SAID IT EXPECTS FEDERAL THRIFT REGULATORS TO REMOVE RESTRICTIONS ON THE UNIT WILMINGTON SAVINGS FUND SOCIETY AS A RESULT OF THE PRIVATE PLACEMENT WSFS ALSO OWNS FIDELITY FEDERAL SAVINGS & LOAN ASSOCIATION STAR STATES FINANCIAL SERVICES AND WSFS CREDIT CORP 9312300169 931230 GENERAL TIREMORGAN ACCORD AKRON OHIO GENERAL TIRE INC THE US AND CANADIAN ARM OF CONTINENTAL AG OF GERMANY SAID IT ENTERED INTO A STRUCTURED FINANCE TRANSACTION WITH JP MORGAN DELAWARE A UNIT OF JP MORGAN & CO GENERAL TIRE SAID IT WOULD SELL AN ACCOUNTS RECEIVABLE PORTFOLIO ON A CONTINUING BASIS TO A SUBSIDIARY GT FUNDING CORP GT WILL ASSIGN THE PORTFOLIO TO A MASTER TRUST AND WILL SELL INTERESTS IN THE TRUST TO AN ASSETSSECURITIZATION VEHICLE PROVIDED BY JP MORGAN 9312300168 931230 BIDS REOPEN ON HEALTH PACT FOR MILITARY PENTAGON REVOKES DECISION TO GIVE AETNA A PACT VALUED AT 35 BILLION BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL THE PENTAGON REACTING TO CRITICISM FROM THE GENERAL ACCOUNTING OFFICE HAS REOPENED BIDDING FOR A HUGE MILITARY MEDICAL CONTRACT THAT WAS AWARDED TO AETNA LIFE & CASUALTY CO INSTEAD OF THE CURRENT CONTRACTOR FOUNDATION HEALTH CORP THE DECISION CAME AFTER THE GAO RESPONDING TO PROTESTS FROM FOUNDATION AND OTHER RIVAL BIDDERS RECENTLY CONCLUDED THAT THE DEPARTMENT OF DEFENSE HAD IMPROPERLY AWARDED AETNA A CONTRACT VALUED AT 35 BILLION OVER FIVE YEARS THE CONTRACT HAS BEEN SEEN AS A POTENTIAL MODEL FOR FUTURE HEALTHCARE REFORMS BECAUSE IT INVOLVES A LARGE POOL OF CUSTOMERS BANDING TOGETHER TO TRY TO EXTRACT COST BREAKS THROUGH COMPETITIVE BIDDING ALTHOUGH GAO OFFICIALS DIDN'T EXPLAIN THEIR FINDING IN A TERSE REPORT SUMMARY ANALYSTS SAY IT APPEARS THE AGENCY WAS CONCERNED THAT PENTAGON OFFICIALS DIDN'T PROPERLY CONSIDER THE HEALTHCARE EFFICIENCIES OF THE BIDDERS AND INSTEAD FOCUSED PRIMARILY ON COST WHEN THEY AWARDED TO AETNA LAST JULY THE FIVEYEAR CONTRACT THE CONTRACT CALLED CIVILIAN HEALTH AND MILITARY PROGRAM OF THE UNIFORMED SERVICES OR CHAMPUS HAS BEEN HANDLED BY FOUNDATION HEALTH A RANCHO CORDOVA CALIF HEALTHCARE PROVIDER SINCE 1988 AND COVERS HEALTHCARE SERVICES FOR 800000 MILITARY RETIREES AND THEIR DEPENDENTS IN CALIFORNIA AND HAWAII BECAUSE FOUNDATION HAS DEPENDED ON THE CONTRACT FOR AS MUCH AS 40 OF ITS TOTAL REVENUE THE AWARD TO AETNA CAME AS A CRUSHING BLOW AND SENT THE FOUNDATION STOCK PLUMMETING BY 352 IN ONE DAY FOLLOWING THE AWARD FOUNDATION ALONG WITH OTHER FINALIST BIDDERS QUALMED INC PUEBLO COLO AND WELLPOINT HEALTH NETWORKS INC WOODLAND HILLS CALIF LODGED PROTEST APPEALS WITH THE GAO ALTHOUGH THE GAO'S FINDING ISN'T BINDING ON THE DEFENSE DEPARTMENT PENTAGON OFFICIALS SAID IN A LETTER THIS WEEK TO THE UNSUCCESSFUL BIDDERS THAT TO REACH AN ACCEPTABLE RESOLUTION ON THIS IMPORTANT ACQUISITION IT HAD AGREED TO A GAO PROPOSAL TO REOPEN BIDDING WITH A FINAL SELECTION MADE BY JULY 31 WE VIEW IT AS A SIGNIFICANT ACHIEVEMENT TO HAVE OVERTURNED THE IMPROPER DECISION SAID KURT DAVIS DIRECTOR OF INVESTOR RELATIONS FOR FOUNDATION OFFICIALS AT WELLPOINT SAID THEY WOULD WITHHOLD COMMENT UNTIL REVIEWING THE GOVERNMENT'S NEW BIDDING SPECIFICATIONS QUALMED OFFICIALS WEREN'T IMMEDIATELY AVAILABLE FOR COMMENT ANALYSTS SAID THOSE TWO COMPANIES POTENTIALLY BENEFIT FROM THE REOPENED BIDDING AS WELL THEY WILL ALL KIND OF GET ANOTHER BITE AT THE APPLE SO IT'S A POSITIVE FOR EVERYBODY SAID ELLIE KERNS AN INDUSTRY ANALYST FOR ALEX BROWN & SONS IN BOSTON WHO UPGRADED TO NEUTRAL FROM NEGATIVE HER RATING ON THE FOUNDATION STOCK AS A RESULT OF THE PENTAGON'S DECISION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FOUNDATION'S STOCK YESTERDAY ROSE 50 CENTS OR 17 TO CLOSE AT 3025 A SHARE STOCK IN WELLPOINT 80OWNED BY BLUE CROSS OF CALIFORNIA CLOSED ON THE BIG BOARD AT 3075 UP 125 CENTS BUT QUALMED'S STOCK TUMBLED 1625 OR 9 TO CLOSE AT 16375 A SHARE ANALYSTS SPECULATED THE QUALMED STOCK DROPPED ON REACTION TO AN EARLIER REPORT THAT A JURY ORDERED HN MANAGEMENT HOLDINGS' HEALTH NET HMO WHICH QUALMED IS MERGING WITH TO PAY 77 MILLION IN PUNITIVE DAMAGES FOR DENYING A PATIENT AN EXPERIMENTAL BONEMARROW TRANSPLANT AETNA SHARES ROSE 50 CENTS OR 08 TO CLOSE AT 6075 A SHARE IN BIG BOARD TRADING CONFIDENT AETNA OFFICIALS OFFICIALS OF AETNA WHOSE AETNA GOVERNMENT HEALTH PLANS UNIT IN SAN DIEGO WAS ORIGINALLY AWARDED THE CONTRACT EXPRESSED CONFIDENCE THEY WOULD BE ABLE TO KEEP IT WE WON THE CONTRACT BECAUSE WE HAD THE BEST PRODUCT TO OFFER AND WE ARE CONFIDENT THAT UNDER ANY KIND OF REVIEW WE WILL BE ABLE TO MAINTAIN THE CONTRACT SAID AETNA SPOKESMAN BOB NORTON MR NORTON ADDED THAT AETNA HAS ALREADY BEEN GIVEN THE GOAHEAD BY THE PENTAGON TO TAKE OVER AT LEAST THE INITIAL PHASE OF THE CONTRACT ON FEB 1 AFTER FOUNDATION'S CONTRACT EXPIRES AT THE END OF NEXT MONTH FOUNDATION HOWEVER FILED A LAWSUIT IN FEDERAL DISTRICT COURT IN VIRGINIA TUESDAY SEEKING A COURT ORDER TEMPORARILY BARRING AETNA FROM COMMENCING THE CONTRACT THAT CASE IS STILL PENDING REOPENING OF THE CONTRACT ISN'T NECESSARILY A BIG BLOW TO AETNA SINCE THE ANTICIPATED 700 MILLION OR SO IN ADDED ANNUAL REVENUE COMPARES WITH THE BIG HARTFORD CONN INSURER'S TOTAL ANNUAL REVENUE OF MORE THAN 17 BILLION ANNUAL PROFIT MARGINS ON THE CONTRACT ARE ALSO BELIEVED TO BE THIN 9312300167 931230 WHO'S NEWS VERIDIEN CORP VERIDIEN CORP ST PETERSBURG FLA THE BOARD OF THIS CHEMICAL COMPANY ELECTED GERALD L PENNINGTON 60 YEARS OLD AS CHAIRMAN THE FLORIDA FINANCIER SUCCEEDS PAUL L SIMMONS 65 WHO WILL REMAIN ON THE BOARD BUT IS TAKING A LESS ACTIVE ROLE IN THE COMPANY 9312300165 931230 INTERNATIONAL ISRAEL PLO CLEAR CERTAIN HURDLES IN THEIR TALKS BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL JERUSALEM AFTER TWO WEEKS OF DEADLOCK ISRAELI AND PALESTINIAN NEGOTIATORS SAID THEY HAD REACHED AGREEMENT ON THE MAIN ISSUES THAT HAVE HELD UP THE ISRAELI WITHDRAWAL FROM THE WEST BANK CITY OF JERICHO AND THE GAZA STRIP BUT PALESTINE LIBERATION ORGANIZATION CHAIRMAN YASSER ARAFAT SAID HE STILL WASN'T SATISIFIED WITH THE DEAL AT A JOINT NEWS CONFERENCE YESTERDAY IN CAIRO EGYPT ISRAELI FOREIGN MINISTER SHIMON PERES AND CHIEF PLO NEGOTIATOR MAHMOUD ABBAS SAID THAT THEY HAD RESOLVED MOST OF THE MAJOR STICKING POINTS PREVENTING THE ISRAELI WITHDRAWAL WHICH WAS TO BEGIN DEC 13 UNDER THE TERMS OF THE ISRAELPLO PEACE ACCORD DESPITE THE OPTIMISM EXPRESSED BY BOTH NEGOTIATING TEAMS THE PLO EXECUTIVE COMMITTEE IN TUNIS YESTERDAY ISSUED A STATEMENT ACCUSING ISRAEL OF DELAYING THE WITHDRAWAL BY INSISTING ON MAINTAINING CONTROL OF THE CROSSING POINTS INTO GAZA AND JERICHO FROM THE NEIGHBORING ARAB STATES BUT PLO OFFICIALS PRIVATELY SAID THEY EXPECT THE FINAL DIFFERENCES TO BE RESOLVED WITHIN 10 DAYS WHILE THE AGREEMENT MUST STILL BE APPROVED BY THE ISRAELI GOVERNMENT AND THE PLO ISRAELI OFFICIALS HAVE INDICATED THAT THE TERMS OF THE COMPROMISE ARE ACCEPTABLE TO THEM IN A NEWS CONFERENCE HELD HERE YESTERDAY ISRAELI POLICE MINISTER MOSHE SHAHAL SAID THE TWO SIDES HAVE AGREED THAT THE SELFRULE ENCLAVE IN JERICHO WILL BE 20 SQUARE MILES MORE THAN DOUBLE THE INITIAL ISRAELI OFFER BUT FAR SHORT OF WHAT THE PALESTINIANS HAD DEMANDED IN ADDITION THE ISRAELIS AGREED THAT THE PALESTINIANS WILL CONTROL THE ARRIVAL OF TRAVELERS TO GAZA AND JERICHO AFTER THEY HAVE FIRST PASSED THROUGH AN ISRAELI SECURITY CHECKPOINT BOTH ISRAELIS AND PALESTINIANS WILL HAVE THE POWER TO REFUSE ENTRY TO ANYONE MR SHAHAL SAID ADDING THAT THERE IS STILL DISAGREEMENT OVER MR ARAFAT'S DEMAND TO CONTROL TRAVELERS COMING TO THE ENTIRE WEST BANK NOT JUST THOSE ENTERING JERICHO MR SHAHAL SAID THE LASTMINUTE COMPLICATIONS RAISED BY MR ARAFAT WERE A STRATEGEM DESIGNED TO SHOW THAT THE PLO LEADER WILL TAKE THE FINAL DECISION ON THE AGREEMENT ARAFAT WANTS TO CONVEY THE FINAL DECISION TO ISRAELI PRIME MINISTER YITZHAK RABIN HIMSELF SAID MR SHAHAL HE WANTS THE DECISION TO BE IN HIS HANDS 9312300164 931210 POTOMAC WATCH ON WELFARE WISCONSIN LEADS BELTWAY STRADDLES BY PAUL A GIGOT SOME THINGS I THOUGHT I'D NEVER LIVE TO SEE BUT THERE ON NBC THE OTHER DAY WAS BILL CLINTON SAYING NICE THINGS ABOUT CHARLES MURRAY HE DID THE COUNTRY A GREAT SERVICE SAID THE PRESIDENT ABOUT THE SOCIAL SCIENTIST WHO HAS DIAGNOSED THE CORROSIVE EFFECTS OF WELFARE I MEAN HE AND I HAVE OFTEN DISAGREED BUT I THINK HIS ANALYSIS IS ESSENTIALLY RIGHT THEN THE PRESIDENT DID HIS BY NOW LEGENDARY CLINTON STRADDLE ADDING NOW WHETHER HIS PRESCRIPTION IS RIGHT I QUESTION THIS IS STILL PROGRESS THINK BACK 10 YEARS TO WHEN MR MURRAY PUBLISHED LOSING GROUND IN WHICH HE SUGGESTED THE ABOLITION OF WELFARE AS A THOUGHT EXPERIMENT HE WAS PILLORIED RUN OUT OF POLITE DEBATE THEN SIX WEEKS AGO MR MURRAY UPDATED HIS ARGUMENT WITH AN ESSAY ON THIS PAGE THE COMING WHITE UNDERCLASS HE NOW ARGUES FOR AN END TO WELFARE ALTOGETHER BECAUSE BY PAYING SINGLE MOTHERS IT SUBSIDIZES THE AMERICAN SOCIAL CATASTROPHE OF 12 MILLION ILLEGITIMATE BIRTHS A YEAR BUT THIS TIME HE HAS NOT BEEN BANISHED LIKE AN AMERICAN SALMAN RUSHDIE THE REACTION TO THE JOURNAL PIECE HAS BEEN STUNNING MR MURRAY SAYS I HAVE NOT RECEIVED ONE NEGATIVE PHONE CALL OR LETTER PAT MOYNIHAN THE SENATE'S WELFARE ARBITER HAS CALLED HIM AND NOW EVEN THE PRESIDENT IS SOUNDING LIKE THE TWO TRADE PHONE CALLS WHICH THEY DON'T THERE IS POLITICAL CALCULUS IN ALL OF THIS BY MR CLINTON OF COURSE HE KNOWS THE POWER OF HIS FAMOUS CAMPAIGN PLEDGE TO END WELFARE AS WE KNOW IT HIS WELFARE TV AD THOSE WHO ARE ABLE MUST GO TO WORK READ ITS CAPTION WAS TROTTED OUT EVERY TIME CANDIDATE CLINTON DROPPED A FEW POINTS IN A STATE POLL SO MR CLINTON MAY WANT TO REFORM WELFARE LESS FOR ITS OWN SAKE THAN TO REASSURE THE VOTING MIDDLE CLASS THAT HE ISN'T JUST ANOTHER ROBIN HOOD YET WHATEVER HIS MOTIVE HIS APPROVAL OF MR MURRAY REVEALS HOW FAR THE COUNTRY HAS MOVED IN THE WELFARE DEBATE WHAT WAS TABOO A FEW YEARS AGO IS NOW COMMON WHEN RONALD REAGAN TALKED IN 1980 ABOUT REQUIRING WORK FOR WELFARE HE WAS DERIDED AS CRUEL NOW EVEN LIBERALS TALK ABOUT WORK NATIONAL POLITICIANS ARE BEHIND THE CURVE SAYS MR MURRAY THEY DON'T REALIZE THAT THIS IS AN ISSUE ON WHICH THERE HAS BEEN HUGE PUBLIC MOVEMENT AS IS OFTEN THE CASE THE DEBATE IS MORE ADVANCED IN THE STATES ESPECIALLY IN WISCONSIN WHICH BEGAN THIS CENTURY BY LEADING THE PROGRESSIVE MOVEMENT THAT WAS A PRECURSOR TO THE WELFARE STATE IT COULD END THE CENTURY BY HELPING TO DISMANTLE IT TOMMY THOMPSON A FRISKY TWOTERM AND LIKELY THREETERM GOP GOVERNOR OPENED THE BIDDING BY TAKING MR CLINTON AT HIS CAMPAIGN WORD HE SOUGHT A FEDERAL WAIVER TO CUT OFF WELFARE IN TWO STATE COUNTIES AFTER TWO YEARS COLD TURKEY THIS WAS AN OFFER MR CLINTON COULDN'T EASILY REFUSE MR THOMPSON HAS BUILT CREDIBILITY BECAUSE EARLIER REFORMS AND A STRONG ECONOMY HAVE CUT HIS STATE'S WELFARE ROLLS BY 17 IN SIX YEARS ALL BUT TWO OTHER STATES HAVE HAD RISING CASELOADS BUT THE POLITICAL STORY HERE IS THE LIBERALS WHO DIDN'T BARK THE CHILDREN'S DEFENSE FUND AND OTHER WELFARE ACTIVISTS DID TRY TO BLOCK THE THOMPSON WAIVER AS TOO PUNITIVE AND CLINTON NOMINEES AT HEALTH AND HUMAN SERVICES ALSO DISLIKED THE PLAN BUT THEY WERE OVERRULED BY THE WHITE HOUSE MR THOMPSON BROUGHT IT UP WITH DAVID GERGEN WHO WAS SUPPORTIVE IT WAS ALSO SUGGESTED THAT IF THE WAIVER WEREN'T APPROVED MR THOMPSON WOULD MAKE A MEMORABLE SPEAKER AT THE NATIONAL PRESS CLUB AFTER HIS AIDES NEGOTIATED THAT MEDICAID BUT NOT WELFARE COULD CONTINUE FOR A THIRD YEAR MR CLINTON TO HIS CREDIT SIGNED OFF ON THE WAIVER BACK IN WISCONSIN MEANWHILE DEMOCRATS DECIDED THAT INSTEAD OF RESISTING MR THOMPSON THEY'D SEE AND RAISE HIM THEY PROPOSED TO ABOLISH ALL WELFARE PROGRAMS BY THE END OF 1998 AND TO DEVISE A WHOLE NEW SYSTEM BY 1995 I WAS ONCE ON WELFARE MYSELF SAYS ANTONIO RILEY A MILWAUKEE DEMOCRAT WHO SPONSORED THE BILL I SEE EVERY DAY WHAT THIS JAILER CALLED WELFARE IS DOING TO PEOPLE HE SAYS THE THOMPSON IDEA DIDN'T GO FAR ENOUGH BECAUSE IT DIDN'T INCLUDE MILWAUKEE COUNTY WHERE 50 OF THE STATE'S WELFARE CASES RESIDE BUT MR THOMPSON MAY NOW ONEUP THESE DEMOCRATS HIMSELF BY SIGNING THEIR BILL USING HIS LINEITEM VETO TO ENSURE THAT HE WOULD BE THE ONE WHO DESIGNS THE NEW SYSTEM WILL MR CLINTON'S WELFARE PROPOSAL BE THIS RADICAL ALMOST CERTAINLY NOT WASHINGTON IS STILL NOT AS PROGRESSIVE AS MADISON AND DESPITE HIS PRAISE FOR MR MURRAY MR CLINTON IS STILL RELUCTANT TO CONFRONT HIS STERN PRESCRIPTION INSTEAD OF GOING COLD TURKEY AFTER TWO YEARS MR CLINTON TOLD NEWSWEEK WE'RE PROBABLY GOING TO HAVE SOME SORT OF PUBLICLY FUNDED JOBS PROGRAM FOR PEOPLE BUT GOV THOMPSON CALLS THIS JUST ANOTHER FORM OF WELFARE A MAKEWORK JOB INSTEAD OF A CHECK MOREOVER ADDS MR MURRAY THE STATE WOULD STILL BE SUBSIDIZING ILLEGITIMACY NOBODY WANTS TO TALK ABOUT STICKS HE SAYS ONLY CARROTS YET ONLY WITH BOTH SANCTION AND REWARD CAN A SOCIETY HOPE TO CHANGE THE DESTRUCTIVE SEXUAL BEHAVIOR THAT HAS PRODUCED 68 ILLEGITIMACY AMONG BLACKS 22 AND RISING FAST FOR WHITES AND THE SOCIAL BREAKDOWN THAT FOLLOWS THE ONLY WAY TO REALLY END WELFARE AS WE KNOW IT IN OTHER WORDS IS SIMPLY TO END IT SEE RELATED LETTER LETTERS TO THE EDITOR FEWER SMOKESTACKS MORE POVERTY WSJ DEC 30 1993 9312100064 YY93 MM12 9312300162 931230 TRUST CO OF NEW JERSEY MOVE JERSEY CITY NJ TRUST CO OF NEW JERSEY SAID SHAREHOLDERS APPROVED A MERGER TRANSACTION ELIMINATING THE HOLDING COMPANY FOR THE BANK TRUSTCOMPANY BANCORP TRUST CO OF NEW JERSEY SAID SHAREHOLDERS NOW DIRECTLY OWN SHARES OF THE BANK'S STOCK THE COMPANY EXPECTS TO REAP SUBSTANTIAL SAVINGS AND PREVENT DUPLICATION OF OPERATIONS FROM ITS ACTION 9312300160 931230 WHO'S NEWS NEOPROBE CORP NEOPROBE CORP COLUMBUS OHIO JAMES F ZID 60 YEARS OLD WAS ELECTED A DIRECTOR OF THIS BIOMEDICAL CANCERRESEARCH COMPANY HE SUCCEEDS JAMES LEDDY 63 THE ELECTION OF MR ZID RECENTLY RETIRED FROM ERNST & YOUNG KEEPS THE BOARD'S TOTAL MEMBERSHIP AT SEVEN 9312300159 931230 TECHNOLOGY & HEALTH FDA BANS UNPROVEN HEALTH CLAIMS BY MAKERS OF SOME DIET SUPPLEMENTS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FOOD AND DRUG ADMINISTRATION SAID IT WILL ALLOW CLAIMS THAT FOLIC ACID IN EARLY PREGNANCY CAN REDUCE THE THREAT OF CERTAIN BIRTH DEFECTS BUT IT RULED AGAINST A NUMBER OF OTHER HEALTH CLAIMS FOR SPECIFIC DIETARY SUPPLEMENTS THE PROHIBITED ASSERTIONS INCLUDE REPRESENTATIONS THAT DIETARY FIBER AND ANTIOXIDANT VITAMINS SUCH AS BETA CAROTENE OR VITAMIN C CAN PREVENT CANCER OR CARDIOVASCULAR DISEASE AND THAT FISH OILS CAN PREVENT HEART DISEASE THE FDA DECISIONS WERE PART OF THE AGENCY'S ANNOUNCEMENT OF BROAD NEW LIMITATIONS ON MARKETING CLAIMS FOR VITAMINS MINERALS AND HERBS THE RULES WILL TAKE EFFECT ON JULY 1 1994 AS EXPECTED THE NEW RULES AIMED AT DETERRING FALSE OR UNPROVEN HEALTH CLAIMS WILL REQUIRE THAT COMPANIES MAKE ONLY CLAIMS THAT ARE BACKED BY BROAD SCIENTIFIC CONSENSUS THERE HAVE BEEN SOME WIDESPREAD EXPRESSIONS OF CONCERN THAT THE FDA WOULD BLOCK ACCESS TO MANY SUPPLEMENTS BUT THE AGENCY INSISTED IT IS ONLY SEEKING TO BAN UNSUBSTANTIATED CLAIMS WE'RE NOT TRYING TO TAKE AWAY ANYBODY'S DIETARY SUPPLEMENTS AN FDA SPOKESWOMAN SAID THE NEW RULES REQUIRED UNDER A 1990 LAW WILL HELP THE PUBLIC MAKE INFORMED CHOICES CONSUMERS SHOULD HAVE ACCESS TO SUPPLEMENTS THAT ARE TRUTHFULLY LABELED AND MARKETED SAID FDA COMMISSIONER DAVID KESSLER THE HEALTHSUPPLEMENT INDUSTRY IMMEDIATELY CRITICIZED THE RULES AS TOO RESTRICTIVE WHILE CONSUMERORIENTED GROUPS APPLAUDED THE ANNOUNCEMENT THE FDA HAS CHOKED OFF THE FLOW OF INFORMATION TO CONSUMERS JD CORDARO PRESIDENT OF THE COUNCIL FOR RESPONSIBLE NUTRITION SAID IN AN INTERVIEW THE COUNCIL REPRESENTS HEALTHSUPPLEMENT COMPANIES THE 4 BILLION INDUSTRY HAD GEARED UP A VIGOROUS PUBLICITY CAMPAIGN TO BLOCK THE NEW RULES AND STILL WANTS TO HAVE THEM LIBERALIZED THROUGH PENDING LEGISLATION THE FDA NARROWLY INTERPRETED THE STANDARD FOR SIGNIFICANT SCIENTIFIC AGREEMENT MR CORDARO SAID THIS WOULD PREVENT COMPANIES FROM TELLING CONSUMERS ABOUT SPECIFIC STUDIES THAT PROVIDE ACCURATE TRUTHFUL AND NONMISLEADING INFORMATION ON HOW VARIOUS SUPPLEMENTS HAVE SHOWN HEALTH BENEFITS HE CONTENDED HE CITED STUDIES THAT HAVE TIED THE ANTIOXIDANT VITAMINS TO PREVENTION OF CANCER AND HEART DISEASE AND ONES THAT LINKED FISH OILS KNOWN AS OMEGA3 FATTY ACIDS WITH CURBING HEART DISEASE THE FDA WHILE NOT ALLOWING CANCERPREVENTION CLAIMS FOR ANTIOXIDANT VITAMINS SAID IT WILL HOLD A SYMPOSIUM ON POSSIBLE HEALTH BENEFITS OF THOSE VITAMINS THE AGENCY SAID IT AWAITS PUBLICATION OF A MAJOR STUDY ON THE ANTIOXIDANTS EARLY IN 1994 AND STANDS READY TO APPROVE ANTIOXIDANT CLAIMS THAT ARE SUPPORTED BY SIGNIFICANT SCIENTIFIC AGREEMENT ALSO AMONG THE CLAIMS THE FDA DISALLOWED WERE ONES LINKING ZINC WITH PREVENTION OF IMMUNE DEFICIENCY IN THE ELDERLY MR CORDARO ALSO SAID THE FDA TOOK TOO LONG TO ISSUE ITS DECISION TO PERMIT CLAIMS THAT FOLIC ACID TAKEN BY WOMEN IN THE EARLY WEEKS OF PREGNANCY REDUCES THE RISK OF SOME BIRTH DEFECTS SUCH AS SPINA BIFIDA MORE THAN A YEAR AGO THE US PUBLIC HEALTH SERVICE RECOMMENDED USE OF FOLIC ACID BY PREGNANT WOMEN TO REDUCE THE RISK OF BIRTH DEFECTS BUT MICHAEL JACOBSON EXECUTIVE DIRECTOR OF THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST A CONSUMER GROUP PRAISED THE FDA ACTION THE LABELS ON DIETARY SUPPLEMENTS SHOULD BE AS HONEST AS THE LABELS ON FOODS WHICH THE FDA NOW REQUIRES HE SAID NOT ONLY WILL CONSUMERS BENEFIT BUT ALSO HONEST LABELERS WILL NO LONGER BE AT A DISADVANTAGE WHEN COMPETITORS STRETCH THE TRUTH MR JACOBSON SAID AS PART OF THE NEW REGULATIONS THE FDA DELAYED UNTIL JULY 1 1995 LABELING REQUIREMENTS COVERING THE CONTENTS OF DIETARY SUPPLEMENTS IT ALSO PROPOSED TO ESTABLISH THE FIRST RECOMMENDED MINIMUM DAILY AMOUNTS FOR SEVEN SUPPLEMENTS VITAMIN K SELENIUM CHLORIDE MANGANESE FLUORIDE CHROMIUM AND MOLYBDENUM 9312300158 931230 WHAT'S IN A DRAIN LIFE'S DETRITUS FROM DEAD PIGS TO DIAMOND RINGS BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL YOU CAN TELL A LOT ABOUT PEOPLE BY WHAT'S CLOGGING THEIR DRAINS SOMETIMES TOO MUCH ADMITS ROTOROOTER INC THE RENOWNED UNCLOGGERS FOR INSTANCE WHAT'S GOING ON IN A HOUSEHOLD WITH 85 PAIRS OF LADIES' BRIEFS STUCK IN THE PIPES OR IN FAMILIES WHO PUT THEIR PETS A 60POUND PIG A BOA CONSTRICTOR A WHITE CAT DOWN THE DRAIN NOTE ONLY THE SNAKE WAS RETRIEVED ALIVE THESE THINGS HAVING BEEN WHERE THEY'VE BEEN MOST ARE NOT IN THE CONDITION THAT YOU'D WANT THEM BACK SAYS MEL SCHETTLER VICE PRESIDENT OF FRANCHISE SERVICES FOR CINCINNATIBASED ROTOROOTER NO ARGUMENT THERE BUT IF IT'S GOT VALUE LIKE THE 6000 DIAMOND RING OR GLASS EYES RECOVERED THE TECHNICIANS POLITELY RETURN THE ITEM TO THE RIGHTFUL OWNERS OTHERWISE THEY THROW IT AWAY MR SCHETTLER SAYS UNCLOGGING CAN HAVE EMBARRASSING MOMENTS FOR INSTANCE ONE TECHNICIAN DISCOVERED A VIBRATOR AND ACCORDING TO THE COMPANY ANOTHER FOUND A PAIR OF SIZE 62 WOMEN'S SILK PANTIES LIKE I SAID DISCRETION IS THE BETTER PART OF VALOR MR SCHETTLER SAYS THESE ITEMS ARE A FAR CRY FROM THE ONEROUS TREE ROOTS THAT ACCOUNT FOR 98 OF CALLS TO THE COMPANY AND FROM WHICH THE COMPANY'S NAME GREW ONCE IN A WHILE THINGS GET REALLY EXCITING CONSIDER THE PLASTIC BAG CONTAINING MARIJUANA AND PIPE OR THE 50000 IN CASH THAT TURNED OUT TO BE PART OF A MURDER PAYOFF IN THESE CASES TECHNICIANS QUIETLY NOTIFY THE POLICE AND TURN OVER THE DISPOSED ITEMS MR SCHETTLER SAYS ROTOROOTER HAS HELPED AUTHORITIES IN DRUG BUSTS BY USING ITS TINY DRAINPIPE CAMERAS THAT CAN RECORD WHAT'S FLOATING AROUND DOWN THERE WHEN A SUSPECT RUNS TO FLUSH HIS STASH SAY ROTOROOTER TECHNICIANS CAN FLIP ON THEIR CAMERAS AND ILLUMINATE A STREAM OF LITTLE WHITE PACKETS SOMETIMES THINGS INCONVENIENTLY TOPPLE INTO DRAINS SUCH AS PETS FORGET THE FIRE DEPARTMENT FOR A RESCUE ROTOROOTER'S LENOID MOORE OF ASHEVILLE NC LAST SUMMER FREED A CLOGGED BABY KITTEN WHOSE MOM HAD DROPPED IT INTO AN OPEN DOWNSPOUT THE KITTEN'S OWNERS TRIED UNTIL 2 AM TO RESCUE IT AND THEN CALLED ROTOROOTER WHO HACKED THROUGH THE PIPE AND PUSHED THE BEDRAGGLED CAT THROUGH THE OTHER END SHE COULDN'T STAND OR MEW MR MOORE SAYS BUT THEY WASHED AND FLUFFED HER UP AND SHE WAS JUST FINE NOT LIKE THAT POSSUM I ONCE FOUND IT WAS JUST DEAD 9312300157 931230 WHO'S NEWS NEW YORK TIMES CO NEW YORK TIMES CO NEW YORK STEPHEN GOLDEN 46 YEARS OLD WAS NAMED TO THE NEW POSITION OF PRESIDENT AND GENERAL MANAGER AT THE FOREST PRODUCTS GROUP OF THIS PRINT AND BROADCAST COMMUNICATIONS COMPANY EFFECTIVE JAN 3 MR GOLDEN IS A CORPORATE VICE PRESIDENT RESPONSIBLE FOR FOREST PRODUCTS OPERATIONS 9312300155 931230 CORSAIR STAKE IN BANESTO COULD EMBARRASS JP MORGAN BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LESS THAN A YEAR AFTER ITS INCEPTION JP MORGAN & CO'S CORSAIR PARTNERSHIP LP HAS RUN HARD AGROUND WITH A TIDY 1 BILLION COMMITTED BY 46 INVESTORS WHO WERE LURED BY THE PROSPECT OF 30 ANNUALIZED RETURNS THE CORSAIR FUND SET OUT IN FEBRUARY TO INJECT CAPITAL INTO TROUBLED BANKING COMPANIES AROUND THE WORLD THE IDEA WAS TO MARRY MORGAN'S BANKING CONTACTS AND EXPERTISE WITH CAPITALHUNGRY US AND INTERNATIONAL BANKS BUT THE FUND NAMED AFTER THE LUXURY YACHT OF PATRIARCH JP MORGAN WAS TOO LATE FOR THE TURNAROUND OF US BANKS AND WENT SEARCHING ABROAD IT TURNED OUT TO BE A BAD TRIP ITS FIRST AND SO FAR ONLY BIG STAKE WAS A 162 MILLION POSITION IN BANCO ESPANOL DE CREDITO OR BANESTO SPAIN'S FOURTHLARGEST BANK ON TUESDAY THE BANK OF SPAIN THREW OUT THE COMPANY'S BOARD WHICH INCLUDED A JP MORGAN VICE CHAIRMAN AND ESSENTIALLY NATIONALIZED IT RAISING THE POSSIBILITY THAT THE CORSAIR FUND'S STAKE WILL BE WIPED OUT GIVING ALL THOSE INVESTORS A TOTAL LOSS ON THEIR FUNDS INVESTED TO DATE THE INSTITUTIONAL INVESTORS ARE BELIEVED TO BE BLUECHIP PENSION FUNDS AND WEALTHY INDIVIDUALS JP MORGAN PUT UP 100 MILLION FOR THE FUND AND EARNS A 2 INVESTMENT FEE ON FUNDS INVESTED CORSAIR'S POTENTIAL LOSS COULD BE A MAJOR EMBARRASSMENT FOR MORGAN AND ITS TOP OFFICIALS AND HIGHLIGHTS THE THORNY ISSUE OF WHETHER A FIRM CAN WEAR VARIOUS HATS AND STILL PROTECT ITS OWN INTERESTS AS WELL AS ITS CLIENTS' IN MOST CASES FIRMS EITHER ACT AS ADVISERS OR REPRESENT INVESTORS BUT DON'T DO BOTH MORGAN OWNED A STAKE IN BANESTO ADVISED MANAGEMENT PLACED SECURITIES AND SAT ON ITS BOARD CERTAINLY IT DAMAGES MORGAN'S CREDIBILITY SAID FRANCIS SUOZZO BANKING ANALYST AT SG WARBURG & CO THE FIRM'S VARIED ROLE CREATES THE POTENTIAL FOR CONFLICTS HE SAID A PERSON CLOSE TO THE BANK SAID IF ANYTHING CORSAIR INVESTORS WISHED WE HAD A CONFLICT THAT'S BECAUSE MORGAN'S ADVISERS COULD WELL HAVE KNOWN ABOUT BANESTO'S WOES BUT WERE BARRED FROM DISCUSSING THEM WITH OTHER BANK EMPLOYEES INCLUDING MANAGERS OF CORSAIR BEYOND THE ETHICAL DEBATE THE FACT THAT THE FUND'S FIRST BIG DEAL HAS GONE SOUR RAISES CONCERN AMONG ANALYSTS ABOUT THE BANK'S ABILITY TO GET ADDITIONAL INVESTMENTBANKING BUSINESS UNTIL NOW EVER SINCE JP MORGAN WAS AWARDED UNDERWRITING POWERS THE BIG BANK HAS BEEN STEADILY CLIMBING THROUGH THE RANKS OF WALL STREET'S BIG INVESTMENT HOUSES IT COULD SLOW DOWN THEIR MOMENTUM ON THE EQUITYFINANCING AND ADVISORY SIDE SAID MR SUOZZO WHILE MORGAN'S BOTTOM LINE WON'T BE HURT IN ANY MATERIAL WAY BY BANESTO ITS REPUTATION CLEARLY HAS BEEN TARNISHED ANALYSTS AND OTHERS SAID AFTER ALL MORGAN USED ITS PREEMINENT NAME TO RAISE THE EQUITY BUT THE DOWNSIDE OF THAT TACTIC IS THAT THE FIRM RISKS SULLYING ITS NAME IF THE INVESTMENT SOURS THE FUND IS STILL HOPING THAT SOMEHOW THE STAKE WILL BE SALVAGED A SPOKESMAN FOR MORGAN SAID THE RECENT NEWS IS NOT WELCOME BUT IT'S TOO EARLY TO SAY WHAT THE ULTIMATE OUTCOME WILL BE AT THE VERY LEAST ANALYSTS SAID THE BANESTO DEAL IS AN EMBARRASSMENT FOR MORGAN OFFICIALS IN PARTICULAR NICHOLAS PAUMGARTEN A FORMER INVESTMENT BANKER WHO WAS TAPPED TO RUN THE FUND AND ROBERTO MENDOZA A MORGAN VICE CHAIRMAN WHO SAT ON BANESTO'S BOARD AND OVERSEES THE BANK'S EQUITY INVESTMENTS MR MENDOZA WAS OUSTED FROM THE BANESTO BOARD WITH OTHER DIRECTORS IT REFLECTS POORLY ON MENDOZA SAID MR SUOZZO NEITHER MR PAUMGARTEN NOR MR MENDOZA WOULD COMMENT IN AN INTERVIEW IN JULY MR MENDOZA WHO HELPED BUILD THE BANK'S INVESTMENTBANKING BUSINESS SAID EQUITY FUNDS WERE A NATURAL EVOLUTION FOR THE BANK TO BECOME A GLOBAL FINANCIAL INSTITUTION MORGAN HAS TWO SIMILAR FUNDS ONE TO INVEST IN REAL ESTATE AND ONE IN INSURANCE THE FUNDS ARE PART OF A STRATEGY BY THE US BANK TO BROADEN ITS INVESTMENTBANKING BUSINESS TO BECOME A FULLFLEDGED MERCHANT BANK WALL STREET RIVALS AND BANKERS IN NEW YORK WERE SURPRISED BY MORGAN'S MISSTEP BECAUSE ITS TIES WITH BANKS AROUND THE WORLD ARE PROBABLY CLOSER THAN ANY OTHER GLOBAL BANK'S MOREOVER IT IS A BIG LENDER TO FINANCIAL INSTITUTIONS THE IMBROGLIO ALSO RAISES CONCERNS ABOUT THE DIFFICULTY OF ANALYZING THE FINANCIAL HEALTH OF AN OVERSEAS BANK IF MORGAN CAN'T CORRECTLY ANALYZE THE FINANCIAL HEALTH OF AN OVERSEAS BANK WHO CAN THE BANK ALWAYS HAS HAD AN INTERNATIONAL VIEW AS A RESULT OF ITS HISTORICAL TIES TO LONDON AND EUROPEAN MARKETS IN THE LATE 19TH CENTURY WAGS JOKED THAT THE CORSAIR YACHT FLEW THE UNION JACK HIGHER THAN THE STARS AND STRIPES OF COURSE THOSE WERE THE DAYS WHEN JP MORGAN TOOK EQUITY STAKES TO GAIN CONTROL OF COMPANIES IN THEORY THE CORSAIR FUND BELIEVED TO BE THE FIRST EQUITY FUND JP MORGAN HAS ORGANIZED AND MANAGED SINCE THE PASSAGE OF THE GLASSSTEAGALL ACT OF 1933 MADE SENSE TWO YEARS AGO THE US BANKING INDUSTRY WAS FACED WITH HUGE WRITEOFFS FROM BAD REALESTATE LOANS AND MANY BANKS WERE UNDERCAPITALIZED MR PAUMGARTEN'S PITCH TO INVESTORS SAID THE INDUSTRY NEEDED AN ADDITIONAL 30 BILLION IN EQUITY CAPITAL CORSAIR WAS BELIEVED TO HAVE LOOKED AT BANKS SUCH AS CONSTELLATION BANCORP AND MIDLANTIC CORP TWO NEW JERSEY BANKS THAT EVENTUALLY RAISED EQUITY CAPITAL ELSEWHERE MORGAN OFFICIALS HAVE ADMITTED THAT THEIR TIMING COULD HAVE BEEN BETTER FOR ONE THEY DIDN'T EXPECT THAT US BANKS WOULD RECAPITALIZE SO QUICKLY WHILE THE BANK STARTED TO RAISE THE FUNDS IN EARLY 1992 IT DIDN'T CLOSE UNTIL EARLY THIS YEAR BY THEN THE INDUSTRY'S FORTUNES HAD TURNED CORSAIR WAS COMPETING WITH THE TORRID PUBLIC MARKET FOR BANK EQUITY LAST YEAR WHEN MANY STOCKS' PRICES DOUBLED ACCORDING TO SECURITIES DATA CO 1058 BILLION IN BANK EQUITY WAS RAISED IN THE PUBLIC MARKETS LAST YEAR UP FROM 78 BILLION IN 1991 THIS YEAR BANKS RAISED ONLY 668 BILLION AS THE NEED FOR FRESH CAPITAL DIMINISHED IN ADDITION CORSAIR'S TERMS WERE TOUGH INVESTMENT BANKERS SAY THE FUND SOUGHT PRIVATE PLACEMENTS OF CONVERTIBLE PREFERRED STOCK WHICH ARE OFTEN MORE EXPENSIVE THAN PUBLIC EQUITY BECAUSE OF THE HIGH DIVIDEND MORGAN OFFICIALS BOASTED THAT THE PREFERENTIAL TERMS IT COULD OBTAIN FROM RECAPITALIZING BANKS WOULD ENABLE THE FUND TO OFFER BETTER RETURNS TO ITS INVESTORS THAN THEY COULD OBTAIN IN THE PUBLIC MARKETS AMONG THOSE TERMS WOULD BE MORE MANAGEMENT CONTROL INCLUDING BOARD REPRESENTATION THEY RIGHTFULLY WANTED TO HAVE A LOT OF SAY AND INPUT ONE INVESTMENT BANKER SAID WITH THE US MARKET SATURATED CORSAIR WENT ABROAD EVEN THOUGH THE FUND WAS INITIALLY CONCEIVED AS A PLAY ON THE US BANKS MR MENDOZA SAID IN JULY THAT THE FUND MISSED OUT IN OPPORTUNITIES WE'D LIKE TO HAVE DONE BUT POINTED OUT THAT THERE ARE BETTER OPPORTUNITIES OUTSIDE THE US THAN INSIDE THE US OTHER EXPERTS AGREE THE TURNAROUND GAME HAS GONE ABROAD TO PLACES SUCH AS SCANDINAVIA AND LATIN AMERICA CORSAIR IS BELIEVED TO HAVE LOOKED AT BANKS IN LATIN AMERICA AND ELSEWHERE IN EUROPE THE HEALTH OF THE EUROPEAN BANKING SYSTEM IS A COUPLE OF YEARS BEHIND THE US SAID RICHARD THORNBURGH MANAGING DIRECTOR AT FIRST BOSTON WHICH IS ADVISING A NUMBER OF TROUBLED BANKS IN SWEDEN AND NORWAY AMONG OTHERS WHY MORGAN TURNED TO BANESTO IS NOT COMPLETELY CLEAR BUT PRIOR TO THE EQUITY INVESTMENT MORGAN HAD AN INVESTMENTBANKING RELATIONSHIP WITH BANESTO THE BANK WAS SUFFERING FROM A LACK OF CAPITAL ONE OF THE FUND'S INVESTMENT CRITERIA AND WAS APPARENTLY RECEPTIVE TO THE FUND'S MANAGEMENT EXPERTISE THERE IS TALK IN SPANISH FINANCIAL CIRCLES THAT CORSAIR WAS NOT PRIVY TO COMPLETE INFORMATION ABOUT BANESTO'S FINANCIAL HEALTH ADDING TO THE CONFUSION IS THE SUDDEN DEPARTURE OF MORGAN'S INVESTMENT BANKER FOR BANESTO VIOLY DE HARPER WHO LAST WEEK JUMPED TO JAMES D WOLFENSOHN INC THERE'S NO SIGN THAT MORGAN IS GOING TO CLOSE CORSAIR OR TAKE ANY OTHER DRASTIC ACTION IT MAY JUST BE A BAD MISTAKE AND NOTHING MORE AFTER ALL THE FUND HAS 10 YEARS AND 900 MILLION MORE TO INVEST PEOPLE MAKE INVESTMENTS THAT TURN OUT BAD ALL THE TIME SAID RODGIN COHEN A BANKING ATTORNEY AT SULLIVAN & CROMWELL I'M SURE THEY MADE PLENTY OF GOOD ONES THE GOAL A FUND SET UP BY JP MORGAN & CO TO INVEST EQUITY CAPITAL IN BANKING COMPANIES IN THE US AND ABROAD INVESTORS WERE TOLD TO ASSUME 30 ANNUAL RETURNS OVER A 10YEAR TIME FRAME THROUGH INVESTMENTS IN TURNAROUNDS INVESTMENTS TO DATE A 162 MILLION STAKE IN BANESTO MADE IN FEBRUARY NO OTHER KNOWN INVESTMENTS 9312300151 931230 MUTUAL FUNDS FIDELITY JOINS MUTUAL FUNDS ON FEECUTTING BANDWAGON BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL THE FIRST SKIRMISHES OF A PRICE WAR SEEM TO BE BREAKING OUT IN THE MUTUALFUND INDUSTRY THE LATEST TO FIRE A SHOT IS FIDELITY INVESTMENTS THE BIGGEST FUND GROUP WHICH YESTERDAY ANNOUNCED VOLUME DISCOUNTS FOR BIG INVESTORS IF THE SPARKS IGNITE A CONFLAGRATION THE FUND INDUSTRY MAY SUFFER BUT INVESTORS WOULD FINALLY GET SOME RELIEF FROM YEARS OF RISING MUTUALFUND EXPENSES FIDELITY HAS BEGUN TO GIVE VOLUME DISCOUNTS OR BREAK POINTS IN THE 3 SALES CHARGES IT LEVIES ON MOST OF ITS MUTUAL FUNDS INVESTORS WHO SHOVEL 1 MILLION INTO A FUND NOW WILL PAY NO LOAD INVESTORS PUTTING IN 500000 OR MORE WILL PAY 1 INVESTMENTS OF 250000 AND UP WILL BE CHARGED A 2 LOAD IN OUR EFFORTS TO ATTRACT PEOPLE FROM FULLSERVICE BROKERAGES WE'RE TALKING TO PEOPLE WHO EXPECT THOSE VOLUME DISCOUNTS SAYS NEAL LITVACK AN EXECUTIVE VICE PRESIDENT AT FIDELITY OUR CHOICE IS TO EITHER PASS ON IT OR OFFER BREAK POINTS AND GET THE CUSTOMERS FIDELITY BASED IN BOSTON SELLS MOST OF ITS FUNDS DIRECTLY TO INVESTORS INSTEAD OF THROUGH BROKERS BUT IT IS ONE OF THE FEW SUCH DIRECT MARKETERS STILL CHARGING A LOAD OR SALES CHARGE ON MANY NEW INVESTMENTS INVESTORS OPENING RETIREMENT ACCOUNTS INCLUDING IRAS WOULD CONTINUE TO BE EXEMPT FROM PAYING A LOAD ON MOST FIDELITY FUNDS FIDELITY ISN'T ALONE IN CUTTING SALES FEES BLANCHARD GROUP OF FUNDS A NEW YORK COMPANY THAT LIKE FIDELITY SELLS DIRECTLY TO INVESTORS RECENTLY WAIVED A 75 ACCOUNTOPENING FEE ON A TEST BASIS FOR TWO OF ITS FUNDS ALLIANCE CAPITAL MANAGEMENT LP A NEW YORK FUND GROUP THAT SELLS THROUGH BROKERS RECENTLY REDUCED THE SALES CHARGES ON MANY OF ITS STOCK FUNDS TO 425 FROM 55 ALTHOUGH ALLIANCE RAISED SALES CHARGES ON SOME OTHER FUNDS THE NET EFFECT WAS TO REDUCE SALES CHARGES SAYS CHRISTOPHER BLUNT DIRECTOR OF COMPETITIVE ANALYSIS AT RIVAL OPPENHEIMER MANAGEMENT CORP NEW YORK WE'VE BEEN EXPECTING FRONTEND LOADS TO COME UNDER PRESSURE MR BLUNT SAYS NOT JUST SALES FEES ARE COMING UNDER PRESSURE VANGUARD GROUP IN VALLEY FORGE PA RECENTLY ELIMINATED THE 10 CUSTODIAL FEE CHARGED TO IRA INVESTORS WHO HAVE MORE THAN 5000 IN A FUND EARLIER THIS YEAR VANGUARD CUT THE ANNUAL ADVISORY FEES ON 16 FUNDS AND SCUDDER STEVENS & CLARK INC NEW YORK WHICH LIKE VANGUARD IS A NOLOAD FUND GROUP ELIMINATED THE CUSTODIAL FEE FOR ALL IRA ACCOUNTS CLEARLY FIDELITY AND OTHER FUND GROUPS AREN'T CUTTING FEES BECAUSE THEY LIKE TO GIVE MONEY AWAY SAYS ERIC KOBREN EDITOR OF FIDELITY INSIGHT AN INDEPENDENT NEWSLETTER THEY'RE DOING IT TO BE COMPETITIVE PRICING PRESSURE COMES FROM THE PROLIFERATION OF FUNDS THE ENTRY OF BANKS INTO THE FUNDMANAGEMENT BUSINESS INROADS IN FUND SALES BY SAN FRANCISCO DISCOUNT BROKER CHARLES SCHWAB CORP AND THE GROWING TREND FOR FUND GROUPS TO WAIVE IRA FEES MR KOBREN SAYS IT'S BECOMING A VERY COMPETITIVE INDUSTRY SOME EXPENSES INCREASE NOT EVERY INVESTOR IS PAYING LESS FIDELITY GOT SHAREHOLDERS IN A MONEYMARKET FUND TO APPROVE HIGHER EXPENSES EARLIER THIS YEAR AND JOHN HANCOCK MUTUAL FUNDS A SUBSIDIARY OF JOHN HANCOCK MUTUAL LIFE INSURANCE CO BOSTON EARLIER THIS YEAR RAISED SOME FUND EXPENSES AND CUT OTHERS INVESTORS ARE CLAMORING FOR MUTUAL FUNDS AND NORMALLY YOU'D EXPECT AN INDUSTRY FACING HEAVY DEMAND TO RAISE PRICES BUT IN THE FUND INDUSTRY A PROLIFERATION OF NEW FUNDS IS FORCING COMPETITION FOR ATTENTION AND ONE WAY IS TO CUT FEES MOSTLY MUTUALFUND EXPENSES HAVE BEEN GOING UP OVER THE YEARS TO BE SURE FUNDS SOLD THROUGH BROKERS HAVE REDUCED THE CHARGES THEY LEVY BROKERSOLD FUNDS TYPICALLY CHARGE A LOAD OF 45 TO 575 TODAY COMPARED WITH THE 85 THAT WAS STANDARD A DECADE AGO BUT OFTEN THOSE APPARENT REDUCTIONS HAVE SIMPLY MASKED A SHIFT OF THE BROKER'S FEE FROM A ONETIME CHARGE TO RECURRING ANNUAL FEES DEDUCTED FROM THE SHAREHOLDER'S ACCOUNT INCREASINGLY THE BENEFITS OF PRICE CUTS GO TO BIG INVESTORS WHOSE BALANCES ARE MORE PROFITABLE TO FUND COMPANIES T ROWE PRICE ASSOCIATES INC IN BALTIMORE RECENTLY GOT ON THE BANDWAGON FOR HIGHMINIMUMINVESTMENT LOWEXPENSE FUNDS WITH ITS SUMMIT FUNDS A CLASS OF FIXEDINCOME FUNDS THAT REQUIRE A 25000 MINIMUM INVESTMENT DREYFUS CORP FIDELITY AND VANGUARD GROUP ALSO HAVE SUCH FUNDS SOME RECENT EXPENSE CUTS ARE COSMETIC FEE WAIVERS IN IRA ACCOUNTS ARE PRETTY SUPERFICIAL SIGNS OF PRICE COMPETITION SAYS JEREMY DUFFIELD A SENIOR VICE PRESIDENT AT VANGUARD WHAT YOU'D REALLY LIKE TO SEE IS CUTS IN THEIR EXPENSE RATIOS OR THE COST OF RUNNING FUNDS WHICH CAN AMOUNT TO FAR MORE THAN THE 10 IRA CUSTODIAL FEES VANGUARD ESPOUSES LOW COSTS AS A WAY OF IMPROVING INVESTMENT RETURNS THE RECENT PRICE CUTS DON'T BEGIN TO ERASE THE STEADY RISE IN FUND EXPENSES OVER THE YEARS ACCORDING TO MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER THE MUTUAL FUNDS IT TRACKS COST 136 A YEAR TO OPERATE ON AVERAGE FOR EACH 100 IN ASSETS THAT'S WELL ABOVE THE 117 EXPENSE PER 100 IN 1983 BUT FUND EXPENSES ARE LOWER THAN THE PEAK OF 146 PER 100 IN ASSETS REACHED IN 1988 FUND EXECUTIVES SAY EXPENSES HAVE RISEN IN PART BECAUSE WITH A FLOOD OF NEW ENTRANTS THE SIZE OF THE AVERAGE FUND HAS SHRUNK OVER THE YEARS MUTUAL FUNDS HAVE ECONOMIES OF SCALE SO SMALL FUNDS TEND TO HAVE HIGHER EXPENSES THAN LARGE FUNDS BUT IN MANY CASES SAYS JOHN REKENTHALER MORNINGSTAR EDITOR MUTUAL FUNDS HAVE RAISED THEIR EXPENSES EVEN AS THEY HAVE GROWN IN SIZE T ROWE PRICE NEW INCOME A BOND FUND WITH 16 BILLION IN ASSETS CHARGES 84 CENTS OUT OF EACH 100 IN ASSETS TO RUN THE FUND ACCORDING TO MR REKENTHALER IN 1983 WHEN THE SAME FUND HAD 640 MILLION IN ASSETS IT CHARGED 57 CENTS OTHER FUNDS WITH RISING EXPENSES DESPITE A GROWING SIZE INCLUDE BOND FUND OF AMERICA AND COLONIAL INCOME MR REKENTHALER SAYS WHY HAVEN'T ECONOMIES OF SCALE LED TO LOWER EXPENSES FOR THESE AND OTHER FUNDS THE FUND COMPANIES TELL YOU IT'S BECAUSE THEY'RE DOING SO MANY MORE SERVICES FOR YOU MR REKENTHALER SAYS WE MIGHT SAY IT'S BECAUSE FUNDCOMPANY PROFIT MARGINS ARE UNBELIEVABLE AND FUNDCOMPANY SALARIES ARE UNBELIEVABLE THOSE ARE TWO ANSWERS YOU CAN TAKE YOUR CHOICE 9312300149 931213 REVIEW & OUTLOOK EDITORIAL HELPING BLACK ENTREPRENEURS BIAS IN BANK LENDING PRACTICES HAS BECOME A CENTRAL CONCERN OF THE CLINTON ADMINISTRATION AND OF THE FEDERAL RESERVE LAST WEEK COMPTROLLER OF THE CURRENCY EUGENE LUDWIG PROPOSED A SET OF NEW REGULATIONS TO STIFFEN THE COMMUNITY REINVESTMENT ACT RAISING THE STANDARD OF LIVING IN THESE TARGETED AREAS IS A WORTHY GOAL BUT THE PROPONENTS OF THESE NEW RULES MAY BE HEADING IN AN UNPRODUCTIVE DIRECTION OTHERS HAVE ALSO LOOKED INTO THE INNER CITIES' INVESTMENT PROBLEMS AND THEIR CONCLUSIONS ABOUT HOW BEST TO HELP DON'T OFTEN TRACK WITH THE ADMINISTRATION'S FOR STARTERS THERE IS THE MATTER OF ASSUMING THAT AN UNWILLINGNESS TO INVEST IN SLUM NEIGHBORHOODS REFLECTS PREMEDITATED DISCRIMINATION THIS IS A PROVOCATIVE AND POLITICALLY POTENT CHARGE BUT IT ALSO SHORTCIRCUITS FURTHER USEFUL DISCUSSION OF THE SUBJECT IN FACT THIS ISN'T A SETTLED ISSUE ONE MIGHT SUGGEST FOR INSTANCE THAT THE IDEA SHOULD BE TO HELP PEOPLE ESCAPE THESE QUICKSANDS NOT HOLD THEM IN PLACE WITH MANDATED HANDOUTS AND PROGRAMS WHILE BUREAUCRATS WHO HAVE FAILED AT THIS TASK IN THE PAST ARE GIVEN MORE TIME TO FUMBLE FOR THE MAGIC ELIXIR THAT WILL TRANSFORM THE SOUTH BRONX INTO SCARSDALE TIM BATES A PROFESSOR AT THE NEW SCHOOL FOR SOCIAL RESEARCH IN NEW YORK CITY AND THE REIGNING EXPERT ON MINORITY BUSINESS IS QUIETLY SCATHING ABOUT TARGETING NEIGHBORHOODS ENTREPRENEURS SHOULD BE ENCOURAGED TO SET UP WHEREVER IT MAKES THE MOST SENSE FOR THEIR BUSINESS HE'D MAKE CAPITAL WIDELY AVAILABLE AND THEN COUNT ON THE PROVEN TENDENCY OF BLACK ENTREPRENEURS TO HIRE BLACK WORKERS AS THE MEANS TO GENERATE UPWARD AND OUTWARD MOBILITY FROM THE SLUMS THESE AND OTHER INTERESTING IDEAS EMERGED LAST WEEK AT A CONFERENCE AT THE CITY UNIVERSITY OF NEW YORK WHERE ACADEMICS AND BLACK ENTREPRENEURS DISCUSSED TAX CUTS ON CAPITAL GAINS AND OTHER INCENTIVES FOR SELFHELP BUT WHILE BOTH LIBERAL AND CONSERVATIVE EXPERTS ON INNERCITY ECONOMIES SEEK ALTERNATIVES TO TRADITIONAL FORMULAS THE CLINTON FOLKS ARE STILL DRIVING IN THE OPPOSITE DIRECTION REVIVING THE IDEA THAT UNDERCLASS AREAS CAN BE DEVELOPED JUST LIKE THIRD WORLD COUNTRIES COMPTROLLER OF THE CURRENCY LUDWIG WOULD RATCHET UP THE PRESSURE ON BANKS TO ESTABLISH LENDING QUOTAS FOR MINORITY NEIGHBORHOODS ON PAIN OF HAVING THEIR MERGERS AND OTHER HEALTHY PROJECTS BLOCKED IF THEY DON'T CONFORM THE FUROR OVER THIS SUBJECT WAS UNLEASHED BY THE BOSTON FED AND OTHER STATISTICAL MILLS CRANKING OUT EVIDENCE OF SUBTLE DISCRIMINATION SETTING ASIDE THE STRENGTH OF THOSE STUDIES THE FACT IS THAT OTHER RESEARCH IS TURNING UP EQUALLY PROVOCATIVE FINDINGS MR BATES'S STUDIES FOR EXAMPLE REVEAL THAT THE HIGHER THE EDUCATION LEVEL OF A BLACK ENTREPRENEUR THE LESS CHANCE THAT HE OR SHE WILL STAY IN BUSINESS IN THE GHETTO ANYWHERE ELSE BUSINESS LONGEVITY IS POSITIVELY TIED TO THE OWNER'S EDUCATION LEVEL SUGGESTING NOT JUST WHITE BANKS AVOIDING THESE AREAS BUT ALSO BLACK TALENT THESE INSIGHTS DON'T QUITE SETTLE THE QUESTION OF WHETHER BANKS ARE ARBITRARILY WAVING OFF PROFITABLE OPPORTUNITIES BECAUSE OF PREJUDICES AGAINST AREAS WHERE BLACKS ARE CONCENTRATED AFTER ALL THERE'S THE KOREAN GROCERY STORE PHENOMENON WHICH SUGGESTS THAT EVEN IN THE WORST NEIGHBORHOODS BUSINESS CAN THRIVE BUT THIS MAY JUST BE THE EXCEPTION THAT PROVES THE RULE MR BATES'S EYEOPENING DATA SHOW THAT KOREAN IMMIGRANT ENTREPRENEURS ARE LARGELY MIDDLE CLASS MOST COME WITH COLLEGE DEGREES AND A HEFTY LUMP OF PERSONAL NET WORTH OFTEN FROM SELLING A HOME IN SEOUL THEIR STORES COME INTO THE WORLD CAPITALIZED TO THE TUNE OF 60000 COMPARED WITH 20000 FOR A BLACK ENTERPRISE YET THE KOREAN SHOPS GENERATE A MEAGER RETURN NEXT TO BUSINESSES STARTING WITH SIMILAR HUMAN AND FINANCIAL CAPITAL WHY DO THESE CAPABLE FOLKS SETTLE IN THE LEAST PROFITABLE LINES OF BUSINESS IN THESE NEIGHBORHOODS MR BATES SUGGESTS THAT KOREANS ARRIVE WITH A POOR COMMAND OF ENGLISH COMPARED WITH OTHER ASIAN IMMIGRANTS AND THUS END UP SCRAPING THE ENTREPRENEURIAL BARREL FOR OPPORTUNITIES SHUNNED BY THE MORE FLUENT WHILE A TRIBUTE TO THEIR PERSEVERANCE IT REINFORCES THE NOTION THAT GHETTOS ARE THE TOUGHEST PLACES IN WHICH TO INVEST WE DON'T SEE WHY IT SHOULD BE UNACCEPTABLE TO CRITICIZE THE NOTION THAT ROUTING MORE MONEY INTO THESE AREAS THROUGH COMMUNITY REINVESTMENT MANDATES ON BANKS WILL NOW PROVE BOUNTEOUS GREAT SOCIETY SPENDING HERE ALREADY AMOUNTED TO SOME 300 BILLION WE DON'T DOUBT THAT A TALENT POOL OF BLACK ENTREPRENEURS IS OUT THERE BETWEEN 1965 AND 1980 BLACK COLLEGE ENROLLMENT QUADRUPLED TO A MILLION AND NOW AFTER A DECADE OR TWO OF EXPERIENCE IN SOMEBODY ELSE'S BUSINESS THEY'RE READY TO START THEIR OWN WE'RE NOT SURE THOUGH WHY THEY SHOULD BE EXPECTED TO GROW THEIR BUSINESSES IN THE COUNTRY'S MOST DIFFICULT ECONOMIC AREAS WHICH ESSENTIALLY WOULD BE THE RESULT OF THE ADMINISTRATION'S PROPOSED GEOGRAPHICAL MEASURES OF COMPLIANCE IN TRYING TO BRING LENDERS AND TALENTED YOUNG BLACK ENTREPRENEURS TOGETHER THE CLINTON ADMINISTRATION MAY BE PUSHING THEM BOTH TOWARD UNINTENDED FAILURES SEE RELATED LETTER LETTERS TO THE EDITOR KOREANS FILL VOID IN BLACK COMMUNITY WSJ DEC 30 1993 9312130061 YY93 MM12 9312300148 931230 IT COULD HAPPEN HUMORIST'S VISION OF YEAR TO COME AUTHOR CHRISTOPHER BUCKLEY SENT US HIS PREDICTIONS OF THE MAJOR HEADLINES OF 1994 9312300147 931230 FIRST ALABAMA BANCSHARES BIRMINGHAM ALA FIRST ALABAMA BANCSHARES INC SAID IT PLANS TO ACQUIRE GUARANTY BANCORP OF BATON ROUGE LA IN A STOCK SWAP FIRST ALABAMA A BANK HOLDING COMPANY WITH 81 BILLION IN ASSETS SAID IT WILL ISSUE 883536 OF ITS SHARES IN THE TRANSACTION AS LONG AS ITS STOCK PRICE FALLS WITHIN THE RANGE OF 31 TO 36 A SHARE ADJUSTMENTS WILL BE MADE IF FIRST ALABAMA'S STOCK IS TRADING OUTSIDE THAT RANGE THE COMPANY SAID GUARANTY BANCORP WHICH HAS SIX BANK OFFICES IN BATON ROUGE HAS 185 MILLION IN ASSETS THE DEAL IS SUBJECT TO SHAREHOLDER AND REGULATORY APPROVAL AND IS EXPECTED TO BE COMPLETED IN THE FIRST HALF OF 1994 9312300146 931230 ALLIANT TECHSYSTEMS' TANK WORK MINNEAPOLIS ALLIANT TECHSYSTEMS INC RECEIVED A 597 MILLION CONTRACT FOR PRODUCTION OF THE MULTIPURPOSE ANTITANK OR M830A1 MPAT TACTICAL TANK AMMUNITION ROUND FROM THE ARMY TANK MAIN ARMAMENT SYSTEMS PICATINNY ARSENAL NJ ALLIANT SAID IN A STATEMENT THAT THE CONTRACT MARKS THE FIRST FULL YEAR OF PRODUCTION FOR THE M830A1 ROUND WHICH PROVIDES THE ARMY'S M1A1 ABRAMS MAIN BATTLE TANK WITH A SIGNIFICANT INCREASE IN PERFORMANCE THE CONTRACT CALLS FOR PRODUCTION AND DELIVERY OF 18000 ROUNDS BETWEEN FEBRUARY AND NOVEMBER OF 1994 ALLIANT SAID 9312300145 931230 MERRILL LYNCH LAZARD FRERES PROBE CALLS IN LOS ANGELES AGENCY BOSTON THE US ATTORNEY HERE SUBPOENAED THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY FOR AN INVESTIGATION OF ALLEGED CONFLICTS OF INTEREST IN UNDERWRITING CONTRACTS BY MERRILL LYNCH & CO AND LAZARD FRERES & CO FEDERAL AND MASSACHUSETTS OFFICIALS ARE PROBING ALLEGATIONS OF IMPROPRIETIES IN THE AWARD OF MUNICIPALBOND BUSINESS BY THE STATE WATER AUTHORITY THE AUTHORITY'S FORMER FINANCIAL ADVISER LAZARD FRERES AND THE FORMER HEAD OF THE FIRM'S BOSTON OFFICE MARK S FERBER ALLEGEDLY RECEIVED FEES AND OTHER PAYMENTS FROM MERRILL LYNCH ONE OF THE AGENCY'S LEAD UNDERWRITERS THAT HADN'T BEEN DISCLOSED FULLY TO THE AGENCY THE SUBPOENA REQUESTS ALL DOCUMENTATION OF THE LOS ANGELES TRANSPORTATION AUTHORITY'S DEALINGS WITH LAZARD FRERES ITS FINANCIAL ADVISER AND MERRILL LYNCH LEAD UNDERWRITER ON A 500 MILLION BOND ISSUE IN MAY 1991 SAID LESLIE PORTER THE AUTHORITY'S TREASURER THE US ATTORNEY IS SEARCHING FOR EVIDENCE OF ANY BUSINESS RELATIONSHIP BETWEEN LAZARD FRERES AND MERRILL LYNCH THAT MAY HAVE CREATED A CONFLICT OF INTEREST FOR THE COMPANIES MR PORTER SAID A SPOKESWOMAN FOR THE US ATTORNEY DECLINED TO COMMENT LAZARD FRERES SAID IT IS ACTIVELY COOPERATING WITH THE GOVERNMENT'S INVESTIGATION IN A MEMO TO THE TRANSIT AUTHORITY IT SAID MR FERBER WASN'T ASSIGNED TO THE LOS ANGELES TRANSPORTATION AUTHORITY'S ACCOUNT AND DIDN'T PROVIDE ASSISTANCE TO THE AUTHORITY IN ANY WAY DURING THE PERIOD IN QUESTION A LAZARD SPOKESWOMAN DECLINED TO COMMENT FURTHER MONICA PRIHODA A SPOKESWOMAN FOR MERRILL LYNCH SAID THE SUBPOENA IS SIMPLY A PART OF THE US ATTORNEY'S EXAMINATION OF THE RELATIONSHIP BETWEEN MERRILL LYNCH AND LAZARD FRERES WE UNDERSTAND THAT THE US ATTORNEY HAS ISSUED A NUMBER OF SUBPOENAS IN CONNECTION WITH THEIR EXAMINATION SHE SAID MS PRIHODA SAID SHE DIDN'T KNOW NAMES OF SPECIFIC RECIPIENTS 9312300143 931230 WHO'S NEWS ENCAD INC ENCAD INC SAN DIEGO RONALD J HALL 53 YEARS OLD MANAGING GENERAL PARTNER OF HALL MORRIS & DRUFVA CAPITAL MANAGEMENT AND HOWARD L JENKINS 57 PRESIDENT OF JENKINS MACHINERY CO WERE NAMED TO THE BOARD OF THE MANUFACTURER OF COLORINKJET PRINTERS AND PLOTTERS THE APPOINTMENTS INCREASE THE SIZE OF THE BOARD TO FOUR FROM THREE CAROL A GIESECKE 48 ENCAD'S CHIEF FINANCIAL OFFICER AND SECRETARY RESIGNED AS A DIRECTOR 9312300142 931230 CORPORATE FOCUS GM WARNS PARTSMAKING GROUP TO BOOST PROFIT OR ELSE TOUGH TALK OFFSHORE' GOAL RILE UNION WHICH MAY LOSE THOUSANDS OF JOBS BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT JT BATTENBERG GROUP VICE PRESIDENT IN CHARGE OF GENERAL MOTORS CORP'S BIG AUTOMOTIVE COMPONENTS GROUP WORLDWIDE HAS A PROVOCATIVE CHART HE LIKES TO SHOW WHEN PEOPLE QUESTION HOW GM WILL TRANSFORM ITS AUTOPARTS MAKING OPERATIONS FROM A LIABILITY TO AN ASSET THE CHART SHOWS A DARK CLOUD LABELED US /CANADA HIGH WAGE RATES MOVING AWAY FROM IT BOOSTED BY A TAILWIND CALLED OFFSHORE GROWTH IS A FIGURE LABELED ACGW UNDERNEATH ARE PIE CHARTS SHOWING THAT IN 1987 68 OF THE GROUP'S 160 PLANTS WERE IN THE US AND CANADA BUT THIS YEAR ONLY 48 OF 181 PLANTS ARE IN NORTH AMERICA WE'RE CONTINUING TO MOVE OUR MANUFACTURING FOOTPRINT OUT OF THE US MR BATTENBERG DECLARES THAT KIND OF TOUGH TALK HAS ALREADY PROVOKED ANGRY OUTBURSTS FROM THE UNITED AUTO WORKERS UNION WHICH STANDS TO LOSE THOUSANDS OF JOBS BUT MR BATTENBERG AND HIS BOSS GM PRESIDENT JOHN F SMITH JR SAY THEY'RE DETERMINED THAT GM'S PARTS OPERATIONS WITH ANNUAL REVENUE OF 245 BILLION MUST DRAMATICALLY BOOST PROFIT IN 1994 AND START RUNNING LIKE A STANDALONE BUSINESS IN THE PROCESS THEY'VE GIVEN SOME 20 OF THE GROUP'S OPERATIONS A DEADLINE OF THE END OF 1994 TO BECOME PROFITABLE OR FACE SHUTDOWN OR SALE INDEED SOME ON WALL STREET ARGUE THE BEST WAY FOR GM TO MAKE ITS PARTS OPERATIONS COMPETITIVE AND REAP THE BENEFIT IS TO SHAPE THEM UP AND SPIN THEM OFF TO SHAREHOLDERS ACG IS A GOLD MINE SAYS STEPHEN GIRSKY OF PAINEWEBBER INC WHO'S BEARISH ON GM GENERALLY THEY SHOULD SPIN IT OFF GM SAYS IT HAS NO INTENTION OF GOING THAT FAR BUT IN HIS QUEST FOR A TURNAROUND MR BATTENBERG AND HIS TOP EXECUTIVES HAVE SUBJECTED THE GROUP'S 210 LINES OF BUSINESS TO RIGOROUS COMPETITIVE ANALYSIS AND LATE THIS YEAR GAVE THE ULTIMATUM TO OPERATIONS EMPLOYING 20000 TO 30000 PEOPLE IN THE US AND CANADA PEOPLE THINK THE PROBLEM IS THE WHOLE ACG MR BATTENBERG SAID WE'RE REALLY DOWN TO THE LAST 20 MR BATTENBERG MEANWHILE HAS PUSHED PLANT MANAGERS TO ADOPT THE EFFICIENT PRODUCTION METHODS THAT ALLOWED RIVALS JAPANESE AND AMERICAN TO OUTPACE GM'S PARTS DIVISIONS IN COST AND QUALITY ALREADY GM'S COMPONENTS GROUP HAS AVERAGED PRODUCTIVITY GAINS OF NEARLY 12 A YEAR DURING THE LAST TWO YEARS AND MR BATTENBERG IS FORECASTING A 10 INCREASE NEXT YEAR MR BATTENBERG HAS ALSO ORDERED THE PARTS DIVISIONS TO HUSTLE HARDER FOR SALES OUTSIDE GM HE WANTS HALF OF THE GROUP'S REVENUE TO COME FROM OUTSIDE GM'S NORTH AMERICAN VEHICLE OPERATIONS WITHIN THE NEXT DECADE UP FROM 25 NOW A LOT IS AT STAKE THE PARTS OPERATIONS COULD BE A BIG CONTRIBUTOR TO GM'S OVERALL NORTH AMERICAN TURNAROUND EFFORT BUT ANALYSTS QUESTION WHETHER THE GROUP CAN REACH ITS PROFIT POTENTIAL WITHOUT DUMPING THOUSANDS OF JOBS AND REVERSING GM'S LONG TRADITION OF MAKING SOME 70 OF THE PARTS THAT GO INTO ITS DOMESTIC VEHICLES THAT'S THE HIGHEST LEVEL IN THE INDUSTRY AND SOME ANALYSTS ARGUE IT'S A MAJOR REASON WHY GM'S COSTS ARE HIGHER AND PROFIT LOWER THAN ITS LESS SELFRELIANT RIVALS THE RESULTS OF MR BATTENBERG'S EFFORTS HAVE IMPRESSED WALL STREET IN THE LAST TWO YEARS GM'S COMPONENTS GROUP IMPROVED ITS EARNINGS BEFORE INTEREST TAXES AND HEALTHCARE COSTS BY 18 BILLION ON THAT BASIS ACG WILL EARN MORE THAN 1 BILLION THIS YEAR WHILE GM'S OVERALL NORTH AMERICAN OPERATIONS ARE STRIVING TO BREAK EVEN BUT MR BATTENBERG CONCEDES THE PERFORMANCE ISN'T GOOD ENOUGH ACG NOW HAS A PROFIT MARGIN BEFORE INTEREST TAXES AND HEALTHCARE COSTS APPROACHING 5 ACCORDING TO ANALYSTS HOWEVER SOME OF ITS COMPETITORS HAVE MARGINS AS HIGH AS 10 WHICH MR BATTENBERG WANTS TO MATCH AS MR BATTENBERG CONFRONTS OLDLINE OPERATIONS THAT AREN'T EARNING THEIR KEEP THE CHANCES OF A BATTLE WITH THE UAW WILL INCREASE JUST LAST MONTH STEPHEN P YOKICH THE UAW'S TOP NEGOTIATOR AT GM STUNNED MR SMITH DURING THE SIGNING OF THE NEW NATIONAL CONTRACT BY LAUNCHING A TIRADE AGAINST MANAGERS AT A GM PARTS PLANT IN OHIO WHO'VE PRESSURED LOCAL UNION LEADERS FOR CONCESSIONS GM'S NEW THREEYEAR CONTRACT WITH THE UAW WON'T MAKE MATTERS EASIER GM TRIED TO CONVINCE THE UNION THAT LOWER WAGES FOR PARTS WORKERS WOULD PRESERVE JOBS BUT THE UAW REFUSED TO BUDGE BY THE END OF THE NEW CONTRACT GM'S LABOR COSTS WILL EXCEED 50 AN HOUR SUCH HIGH LABOR COSTS AREN'T A BIG ISSUE IN GM'S ASSEMBLY PLANTS BECAUSE ITS COMPETITORS HAVE SIMILAR LABOR COSTS BUT IN ITS PARTS OPERATIONS GM COMPETES WITH INDEPENDENTS WITH LABOR COSTS OF LESS THAN 20 AN HOUR AND WITH FOREIGN OPERATIONS WITH EVEN LOWER LABOR COSTS GM EXECUTIVES ARE PINNING SOME OF THEIR HOPES ON A SIDEDEAL TO THE NEW NATIONAL CONTRACT IN WHICH THE UAW AGREED TO PARTICIPATE IN BENCHMARKING STUDIES OF UNCOMPETITIVE PARTS PLANTS THESE STUDIES WILL COMPARE GM'S OPERATIONS TO THE BEST IN THE WORLD AND ASSESS THE CHANCES FOR A TURNAROUND IN A TEST OF THE PROCESS AT A LIVONIA MICH PLANT WHICH HAD BEEN POSTING ANNUAL LOSSES OF 65 MILLION AND WAS SCHEDULED TO CLOSE GM AND UAW BARGAINERS AGREED THAT A BUMPERMAKING OPERATION WAS HOPELESSLY UNCOMPETITIVE AND COULDN'T BE SAVED BUT THEY CAME UP WITH WORK RULE AND OTHER CHANGES THAT COULD ALLOW THE PLANT TO REMAIN IN ITS OTHER BUSINESS MAKING COIL SPRINGS ONCE WE HAD GOTTEN PAST THE EMOTIONAL ASPECT OF LOSING THE JOBS ON THE BUMPER LINE SAID ROBERT EVANS THE UAW BARGAINING CHAIRMAN IN LIVONIA THEN WE SAW THE REALITY OF TRYING TO HOLD ON TO THE SPRING LINE HOWEVER ALL THE PLANTS ON THE NEW LIST OF UNCOMPETITIVE OPERATIONS MAY NOT FIND SUCH COMPROMISES OFFICIALS AT OTHER PARTS MAKERS SAY GM APPEARS TO BE GETTING READY TO SELL UNITS THAT WEREN'T AMONG THE PLANTS ACCOUNTING FOR 3 BILLION IN SALES THAT GM PUT UP FOR SALE IN LATE 1992 THE QUESTION ANALYSTS SAY IS WHAT GM WILL DO WITH THOSE UNITS THAT DON'T TURN AROUND BY THE 1994 DEADLINE AND DON'T FIND A BUYER THE UAW HAS DEMONSTRATED IN THE PAST IT WILL STRIKE TO BLOCK PLANT CLOSINGS AND EVEN IF GM DOES SHUT A UNIONREPRESENTED PLANT IN THE US IT WILL WIND UP PAYING THE WORKERS INDEFINITELY MR BATTENBERG CONTENDS THAT TECHNOLOGY BREAKTHROUGHS WILL MAKE SEAT CONSTRUCTION LESS LABOR INTENSIVE AND HE BELIEVES THAT GM WILL HAVE A COMPETITIVE ADVANTAGE AS CAR MAKERS INTEGRATE SEATS AND SEAT BELTS BOTH OF WHICH GM MAKES HISTORICALLY WE'VE NOT BEEN ABLE TO MAKE MONEY AT SEATS HE SAYS BUT WE THINK WE CAN GOING FORWARD 9312300141 931230 COLTEC INDUSTRIES' NAVY ORDER NEW YORK COLTEC INDUSTRIES INC SAID ITS FAIRBANKS MORSE ENGINE DIVISION RECEIVED A FIRM ORDER VALUED IN EXCESS OF 19 MILLION TO PRODUCE FOUR ENGINES AND RELATED EQUIPMENT FOR THE FIRST SHIP OF THE NAVY'S SEALIFT PROGRAM NEW YORKBASED MANUFACTURER COLTEC SAID FAIRBANKS WHICH IS BASED IN BELOIT WIS ALSO RECEIVED OPTIONS VALUED IN EXCESS OF 95 MILLION TO PRODUCE ENGINES FOR FIVE ADDITIONAL SHIPS IN THE SEALIFT FLEET THE ENGINES FOR THE FIRST SHIP ARE SCHEDULED TO BE DELIVERED IN 1995 IF THE OPTIONS ARE CONVERTED TO FIRM ORDERS BY THE NAVY THE ADDITIONAL ENGINES WOULD BE DELIVERED BEGINNING IN 1996 AND ENDING IN 2000 9312300140 931230 INTERNATIONAL HONG KONG POSTS TRADE DEFICIT HONG KONG DESPITE THE SURGING REEXPORTS VALUE HONG KONG POSTED A TRADE DEFICIT OF 974 MILLION HONG KONG DOLLARS US126 MILLION FOR NOVEMBER SLOWER EXPORT GROWTH CAUSED THE DECLINE ACCORDING TO PROVISIONAL FIGURES PROVIDED BY THE CENSUS AND STATISTICS DEPARTMENT THE FIGURE REVERSED THE TRADE SURPLUS RECORDED LAST MONTH A GOVERNMENT SPOKESMAN SAID THE GROWTH IN EXPORTS MODERATED IN RECENT MONTHS AS A RESULT OF WEAKER DEMAND IN THE OVERSEAS MARKETS AND THE SLOWDOWN IN EXPORT GROWTH TO CHINA 9312300139 931230 CERIDIAN CORP REDEMPTION MINNEAPOLIS CERIDIAN CORP SAID IT WILL CALL ALL OF ITS 85 CONVERTIBLE SUBORDINATED DEBENTURES DUE JUNE 15 2011 FOR REDEMPTION ON JAN 18 AT 10255 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST ABOUT 1635 MILLION IN PRINCIPAL AMOUNT OF THE DEBENTURES ARE OUTSTANDING THE DATA SERVICES CONCERN SAID THE RIGHT TO CONVERT THE DEBENTURES INTO CERIDIAN COMMON STOCK AT A PRICE OF 2406 A SHARE WILL END WITH THE REDEMPTION THE COMPANY SAID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING LATE YESTERDAY CERIDIAN WAS QUOTED AT 19 DOWN 375 CENTS 9312300137 931230 BED BATH & BEYOND SALES RISE SPRINGFIELD NJ HOMEFURNISHINGS RETAILER BED BATH & BEYOND INC REPORTED NET SALES ROSE 433 TO ABOUT 356 MILLION FOR THE FOURWEEK PERIOD ENDED DEC 26 COMPARED WITH 248 MILLION FOR THE SAME PERIOD LAST YEAR SALES AT STORES OPEN AT LEAST A YEAR ROSE BY ABOUT 152 FOR THE PERIOD THE COMPANY SAID ALTHOUGH IT DECLINED TO GIVE DOLLAR FIGURES 9312300136 931230 MARKETING BRIEF NOTED WHO'S NEWS THOMAS M LEWYN AND FRANCIS FORD COPPOLA WERE NAMED DIRECTORS OF METRO GOLDWYN MAYER INC INCREASING THE SANTA MONICA CALIF MOTIONPICTURE STUDIO'S BOARD TO EIGHT MR LEWYN 63 YEARS OLD IS A LAWYER WITH THE NEW YORK FIRM OF SIMPSON THACHER & BARTLETT HE FORMERLY SERVED AS GENERAL COUNSEL OF PARAMOUNT COMMUNICATIONS INC'S PARAMOUNT PICTURES UNIT MR COPPOLA 54 IS THE FAMED HOLLYWOOD DIRECTOR WRITER AND PRODUCER MGM IS A UNIT OF CREDIT LYONNAIS SA 9312300133 931230 PHILADELPHIA ELECTRIC CO PHILADELPHIA PHILADELPHIA ELECTRIC CO SAID IT WILL CHANGE ITS NAME TO PECO ENERGY CO ON SATURDAY THE UTILITY COMPANY SAID THE NEW NAME MORE ACCURATELY REFLECTS ITS SERVICE TO PHILADELPHIA IN ADDITION TO OTHER AREAS INCLUDING SOUTHEASTERN PENNSYLVANIA PART OF NORTHEASTERN MARYLAND AND PHILADELPHIA'S SUBURBS 9312300127 931230 INNOVATIVE SHIPPING BUYS ASM SARASOTA FLA INNOVATIVE SHIPPING SYSTEMS INC SAID IT COMPLETED THE ACQUISITION OF ASM SERVICES INC IN A STOCK SWAP TERMS WEREN'T DISCLOSED THE COMPANY SAID ASM IS PRODUCING A CREDIT CARDOPERATED AUTOMATED US POSTAL SERVICE STAMP BOOKLET DISPENSER THE COMPANY ALSO IS DEVELOPING A SELFSERVICE AUTOMATED SHIPPING MACHINE THAT ALLOWS CUSTOMERS TO MAIL ITEMS VIA EXPRESS MAIL PRIORITY MAIL AND PARCEL POST AND TO BUY BOOKLETS OF STAMPS WITH A CREDIT CARD THE COMPANY NAMED KENNETH R COLE JR PRESIDENT OF ASM AND JOHN MOCK TO ITS BOARD BOOSTING THE BOARD SIZE TO SIX FROM FOUR MR COLE WILL REMAIN PRESIDENT OF ASM WHICH WILL OPERATE AS A UNIT OF INNOVATIVE SHIPPING 9312300126 931230 INTERNATIONAL RIO DE JANEIRO RECRUITS THE MILITARY IN ITS WAR ON SHANTYTOWN DRUG LORDS BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RIO DE JANEIRO MACHINE GUNS AT THE READY 26 SOLDIERS DRESSED IN CAMOUFLAGE SUDDENLY APPEAR ON THE MAIN SQUARE OF THE ROQUETE PINTO SHANTYTOWN THEY MARCH BRISKLY AND SILENTLY THROUGH NARROW ALLEYWAYS STOPPING OCCASIONALLY TO CHECK OUT SUSPICIOUS ACTIVITY ANOTHER LATIN AMERICAN MILITARY COUP IN THE MAKING NO THIS IS BRAZIL'S EFFORT TO BREAK DRUG TRAFFICKERS' STRENGTHENING GRIP ON RIO'S FAVELAS OR SLUMS IN A LARGELY UNPUBLICIZED OPERATION THE ARMY NOW PATROLS THE STREETS OF ROQUETE PINTO ON RIO'S NORTHERN OUTSKIRTS IN A COOPERATIVE EFFORT WITH THE MILITARY POLICE THIS IS THE START OF THE COUNTEROFFENSIVE AGAINST DRUG TRAFFICKING SAYS COL PAULO CESAR COSTA DE OLIVEIRA OF THE MILITARY POLICE WHICH DESPITE ITS NAME IS A CIVILIAN FORCE ROQUETE PINTO IS A TRAINING GROUND FOR SUCH OPERATIONS MY IDEA IS TO DO THIS IN OTHER PLACES BUT AS THE ARMY MARCHES THROUGH THE DUSTY STREETS OF ROQUETE PINTO ITS SOLDIERS ARE STEPPING INTO A POLITICAL MINEFIELD THE QUESTION IS CAN THE ARMY CONTRIBUTE TO SOCIAL PEACE OR WILL IT WORSEN URBAN VIOLENCE AND UNDERMINE DEMOCRACY FEW DOUBT THE NEED FOR SOME KIND OF STATE INTERVENTION IN RIO'S 546 FAVELAS WHICH INCREASINGLY HAVE BECOME NO MAN'S LANDS IN WHICH DRUG TRAFFICKERS RULE THROUGH A MIXTURE OF FEAR AND PATRONAGE THEY OFTEN SET CURFEWS COLLECT TAXES FROM RESIDENTS AND IMPOSE THEIR OWN LAWS IN SOME FAVELAS WIFEBEATING HUSBANDS ARE SHOT IN THE FEET AND THE HEADS OF ADULTEROUS WIVES ARE SHAVED AT THE SAME TIME SOME TRAFFICKERS HAVE TRANSFORMED THEMSELVES INTO LOCAL HEROES BY PROVIDING FREE FOOD OR MEDICINE OR BY BUILDING SOCCER FIELDS AMONG A POPULATION THAT FEELS LARGELY ABANDONED BY THE STATE THIS MONTH WHEN REPUTED TRAFFICKER MARCELO FONTES DE SOUZA WAS WANTED AS A SUSPECT IN THE KIDNAPPING OF TWO CHILDREN OF A FRENCH BUSINESSMAN HE SHOWED UP IN BROAD DAYLIGHT FOR AN IMPROMPTU PRESS CONFERENCE IN HIS STRONGHOLD THE VARGINHA FAVELA TO DENY THE CHARGES HE THEN DISTRIBUTED FOOD TO RESIDENTS BEFORE DEPARTING TO APPLAUSE ON THE BACK OF A MOTORCYCLE MANY HERE RECOGNIZE THAT THE INCREASING AUDACITY AND FIREPOWER OF RIO'S DRUG TRAFFICKERS CONTRIBUTE HEAVILY TO THE CITY'S ALARMING VIOLENCE AND SAY A COUNTERATTACK IS LONG OVERDUE IN A SURVEY IN LATE SEPTEMBER IN THE DAILY NEWSPAPER O GLOBO 86 OF THOSE POLLED SAID RIO IS EXPERIENCING URBAN GUERRILLA WARFARE AND 89 FAVORED JOINT MILITARY AND POLICE OPERATIONS SUCH AS THE ONE IN ROQUETE PINTO AT THE SAME TIME HOWEVER MANY WONDER WHETHER BRINGING IN THE ARMY IS THE SOLUTION IN A COUNTRY THAT ABANDONED MILITARY RULE LESS THAN A DECADE AGO THE SITUATION IS ALL THE MORE DELICATE TODAY BECAUSE RECENT ARMY PRONOUNCEMENTS CONCERNING ECONOMIC POLITICAL AND MORAL ISSUES IN THE TROUBLED COUNTRY HAVE AWAKENED FEARS OF MILITARY INTERVENTION IN AN ISOLATED PLACE MILITARY INTERVENTION MIGHT SEEM LIKE AN EXCELLENT SOLUTION BUT AS A GENERAL POLICY THIS CAN LEAD TO A DISASTROUS ESCALATION OF VIOLENCE LIKE IN PERU OR COLOMBIA AND CAN ALSO STRENGTHEN AUTHORITARIAN TENDENCIES SAYS ANTHROPOLOGIST RUBEM CESAR FERNANDES ONE OF THE ORGANIZERS OF VIVA RIO A MOVEMENT THAT RECENTLY SPONSORED A TWOMINUTE SILENT PROTEST AGAINST VIOLENCE IN WHICH MUCH OF RIO'S POPULATION PARTICIPATED ONCE THE ARMY IS IN THE STREETS IT DOESN'T WANT TO LEAVE ANY MORE HE SAYS ITS PLACE IS IN THE BARRACKS BUT TRY TELLING THAT TO THE 8000 RESIDENTS OF ROQUETE PINTO WITH ITS LABYRINTHINE ALLEYWAYS AND ITS CLUSTERS OF BRICK AND WOODEN HOUSES SOME ON STILTS OUTSIDE PEOPLE SAY YOU CAN'T HAVE THE ARMY IN THE STREET SAYS 19YEAROLD DENILSON DE MELLO BUT HERE PEOPLE LIKE IT A LOT THERE ARE NO MORE BANDITS HERE SINCE THE ARMY ENTERED ROQUETE PINTO OWES THE DISTINCTION OF BEING A TESTING GROUND FOR ARMY INTERVENTION IN PART TO ITS LOCATION IT'S TUCKED BETWEEN THE SEA A YACHT CLUB AND RIO'S INTERNATIONAL AIRPORT AND ALSO THE BARRACKS OF THE 24TH ARMORED INFANTRY BATALLION HOWEVER IT WASN'T UNTIL A SENTRY WAS WOUNDED IN OCTOBER IN A FIREFIGHT BETWEEN DRUG GANGS THAT THE ARMY SPRANG INTO ACTION IT WAS SUMMONED BY THE STATE OF RIO DE JANEIRO WHICH UNDER BRAZIL'S CONSTITUTION IS RESPONSIBLE FOR MAINTAINING A POLICE FORCE WITHIN ITS BORDERS THE ARMY IS MAINTAINED BY THE FEDERAL GOVERNMENT FIRST SOLDIERS MAPPED THE ENTIRE FAVELA PAINTING STREET NAMES AND NUMBERS ON ALL HOUSES THEN THEY CONDUCTED A CENSUS OF ALL RESIDENTS TO KEEP TRACK OF THEIR MOVEMENTS TO LIMIT ACCESS TO ROQUETE PINTO BY SEA CONSIDERED AN ENTRY POINT FOR CONTRABAND ARMS AND DRUGS THE ARMY SET UP AN OBSERVATION DECK SURROUNDED THE PORT WITH BARBED WIRE AND DISTRIBUTED CREDENTIALS TO LOCAL FISHERMEN SEVERAL TIMES A DAY SOLDIERS PATROL THE STREETS THE MILITARY POLICE'S PRESENCE HAS BEEN BEEFED UP TOO OFFICIALS SAY THERE IS NO TIME LIMIT ON THE JOINT OPERATION AWARE THAT TRAFFICKERS BUILD LOYALTY BY APPEARING AS BENEFACTORS THE ARMY IS ALSO STRESSING COMMUNITY RELATIONS A MILITARY DOCTOR AND DENTIST ATTEND TO RESIDENTS FOR FREE THE ARMY REBUILT THE BULLETRIDDLED WALL OF A COMMUNITY CENTER IT HELD A CHRISTMAS PARTY FOR THE FAVELA'S TODDLERS AND THE PHONE NUMBER OF THE BATALLION'S PUBLICRELATIONS DEPARTMENT WAS PAINTED ON THE WALL OF THE BARRACKS SO PEOPLE WOULD SEEK OUT THE ARMY SO FAR REACTION SEEMS POSITIVE IF THIS OPERATION ENDS I'LL SELL MY HOUSE AND LEAVE SAYS 66YEAROLD MARIA CECILIA JULIO RESIDENTS SAY THERE HASN'T BEEN A SINGLE FIREFIGHT IN ROQUETE PINTO SINCE THE OPERATION BEGAN AND THEY CLAIM THE TRAFFICKERS HAVE BEEN DRIVEN OUT IT'S SO CALM IT'S EERIE SAYS 27YEAROLD CARMEN COSTA DA SILVA ARMED GANGS NO LONGER ROAM THE STREETS THE OPEN SELLING OF DRUGS HAS CEASED AND RESIDENTS ARE NO LONGER KEPT AWAKE AT NIGHT BY THE FIREWORKS TRAFFICKERS SET OFF TO ADVISE THAT A SHIPMENT HAS ARRIVED AND RESIDENTS SAY IT'S NOT JUST THAT THEY FEEL SAFE FROM TRAFFICKERS THEY ALSO FEEL SAFE FROM THE POLICE FORCE CONSIDERED BY MANY IN THE FAVELAS TO BE VIOLENT AND ABUSIVE THE ARMY RESPECTS US SAYS MR DE MELLO THEY SAY PLEASE' BEFORE SEARCHING YOU BUT CAN THIS APPARENT SUCCESS BE REPRODUCED ELSEWHERE MANY THINK NOT EACH FAVELA IS A PARTICULAR CASE SAYS DAISY LUCIDI A DEPUTY IN RIO'S STATE LEGISLATURE AND PRESIDENT OF A DAYCARE CENTER IN ROQUETE PINTO AN EXPANSION OF THE PROGRAM WOULD BE A JOINT DECISION OF THE STATE AND FEDERAL GOVERNMENTS MRS LUCIDI SUPPORTS THE ARMY OPERATION IN ROQUETE PINTO BUT SAYS TRAFFICKERS WOULDN'T CONTROL FAVELAS IF THE STATE PROVIDED BASIC NECESSITIES HOWEVER SHE SAYS FOR THE TIME BEING BRAZILIANS CAN'T WASTE TIME DEBATING WHO SHOULD BE PROTECTING THEM AND SHOULD ACCEPT HELP FROM ALL QUARTERS EVEN THE ARMY WE DON'T WANT A DICTATORSHIP SHE SAYS BUT WE WANT TO BE ABLE TO WALK THE STREETS 9312300125 931230 CREDIT RATINGS SYNTEX CORP PALO ALTO CALIF MOODY'S INVESTORS SERVICE INC SAID IT PLACED UNDER REVIEW THE LONGTERM DEBT RATINGS OF THIS DRUG MAKER AND ITS SYNTEX USA INC UNIT FOR POSSIBLE DOWNGRADE MOODY'S SAID ITS REVIEW AFFECTS ABOUT 400 MILLION IN LONGTERM DEBT THE RATINGS AGENCY SAID THE REVIEW REFLECTS CONCERN THAT THE EXPIRATION OF SYNTEX'S US PATENT ON ITS ANALGESIC DRUGS WILL LEAD TO A DROP IN PROFITABILITY THE US SALES OF SYNTEX'S ANALGESICS ACCOUNT FOR 30 OF SALES AND A LARGER PROPORTION OF PROFITS MOODY'S SAID RECENT COMPETITION BY GENERICDRUG MAKERS COULD HEAVILY ERODE SYNTEX'S MARKET SHARE SYNTEX MAKES PHARMACEUTICALS DIAGNOSTIC PRODUCTS AND ANIMALHEALTH PRODUCTS 9312300124 931230 FINANCING BUSINESS MDC HOLDINGS INC MDC HOLDINGS INC SAID IN DENVER THAT IT COMPLETED A PRIVATE PLACEMENT OF 218 MILLION IN DEBT TO RETIRE EXISTING NOTES AND COMPLETE THE PREVIOUSLY ANNOUNCED PURCHASE OF ALL THE COMMON STOCK OF RICHMOND HOMES MDC'S COLORADO HOMEBUILDER AFFILIATE MDC SAID IT ISSUED 190 MILLION PRINCIPAL AMOUNT OF 11125 SENIOR NOTES DUE 2003 AND 28 MILLION PRINCIPAL AMOUNT OF 875 CONVERTIBLE SUBORDINATED NOTES DUE 2005 THE SENIOR NOTES WERE PRICED AT 98525 AND THE CONVERTIBLE SUBORDINATED NOTES WERE PRICED AT PAR AND ARE CONVERTIBLE INTO COMMON STOCK AT 775 A SHARE NET PROCEEDS ARE ESTIMATED TO BE 2039 MILLION THE HOME BUILDER SAID MDC SAID RETIRING EXISTING DEBT WOULD RESULT IN AN EXTRAORDINARY GAIN OF 145 MILLION IN THE FOURTH QUARTER THE PLACEMENT AGENT FOR THE OFFERING WAS FRIEDMAN BILLINGS RAMSEY & CO 9312300122 931230 LEGAL BEAT AFTER THE VERDICT WILL JUROR INTERVIEWS SKEW THE DELIBERATIONS IN FUTURE TRIALS BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL IT'S A QUICK TRIP FROM THE JURY ROOM TO THE TELEVISION STUDIO FOR MANY JURORS IN HIGHPROFILE CASES THESE DAYS SHORTLY AFTER THE ACQUITTALS IN THE 1992 TRIAL OF FOUR POLICE OFFICERS ACCUSED OF BEATING RODNEY KING JURORS WERE INUNDATED WITH MEDIA REQUESTS FOR INTERVIEWS SEVERAL APPEARED ON NIGHTLINE AND OTHER SHOWS TO EXPLAIN THEIR UNPOPULAR VERDICT NEWSPAPER AND MAGAZINE STORIES FOLLOWED IN WHICH THE DELIBERATIONS AND JURORS' DISAGREEMENTS WERE PAINSTAKINGLY RECONSTRUCTED SIMILARLY IN RECENT TRIALS INVOLVING IMELDA MARCOS WILLIAM KENNEDY SMITH LEONA HELMSLEY AND MIKE TYSON NEWSPAPER STORIES ON THE JURIES' PRIVATE DISCUSSIONS AND PETTY RIVALRIES HAVE APPEARED WITHIN DAYS OF THE DECISIONS THE FREQUENCY AND PERSISTENCE OF THE MEDIA IN DISSECTING JURIES' DELIBERATIONS WORRY SOME JUDGES AND SCHOLARS WHO BELIEVE THERE MAY BE DIRE CONSEQUENCES FOR THE INTEGRITY OF THE JUSTICE SYSTEM IF JURORS KNOW THEY MAY BE PUBLICLY CRITICIZED BECAUSE OF NEWS REPORTS OF THEIR PROCEEDINGS THESE JUDGES AND SCHOLARS SAY JURIES MAY BE LESS LIKELY TO DO THE RIGHT THING BASED ON THE FACTS AND THE LAW AS A RESULT SOME JUDGES ARE CALLING FOR CURBS ON REPORTERS' ACCESS TO JURORS THE LATEST RULING ON THE ISSUE CAME THIS MONTH IN THE STOCKFRAUD TRIAL OF EDDIE ANTAR FOUNDER OF THE CRAZY EDDIE INC RETAIL ELECTRONICS CHAIN WHEN NEWSPAPER REPORTERS TRIED TO INTERVIEW THE JURORS WHO CONVICTED MR ANTAR IN JULY JUDGE NICHOLAS POLITAN OF FEDERAL COURT IN NEWARK NJ PLACED SOME STRICT LIMITS ON WHAT THE JOURNALISTS COULD ASK IN HIS ORDER JUDGE POLITAN SAID HE COULDN'T BAN THE JURORS FROM SPEAKING BUT BY RULING THAT REPORTERS COULD ASK EACH JUROR ONLY ABOUT HIS OR HER VOTE AND NOT ABOUT OTHER JURORS' VOTES OR COMMENTS JUDGE POLITAN SAID HE WAS TRYING TO DETER POSTVERDICT JURY INTERVIEWS THE JUDGE ALSO SENT THE JURORS A LETTER URGING THEM TO RESPECT THE TRADITION OF SECRECY THAT IS A HALLMARK OF THE JURY SYSTEM JURORS OFTEN AGREE AMONG THEMSELVES NOT TO DIVULGE DETAILS OF THEIR DELIBERATIONS BUT THE LEGAL PROTECTION OF JURY CONFIDENCES ENDS WHEN A VERDICT IS REACHED JURORS IN THE US HAVE FREESPEECH RIGHTS THAT ALLOW THEM TO DISCUSS AND WRITE ABOUT THEIR CASES AFTER A VERDICT UNLIKE IN BRITAIN AND CANADA WHICH RESTRICT JURORS FROM DISCUSSING TRIALS DONALD A ROBINSON THE ATTORNEY FOR THE NEWARK STARLEDGER WHOSE REPORTERS TRIED TO INTERVIEW THE ANTAR JURORS SAID JUDGE POLITAN'S ORDER IS THE MOST EXTREME RULING HE HAS SEEN TO DISCOURAGE PUBLICITY ABOUT JURY DELIBERATIONS THE LAW IN MY OPINION HASN'T GOTTEN TO THE POINT WHERE A JUDGE CAN ORDER REPORTERS NOT TO ASK CERTAIN THINGS MR ROBINSON SAID THE NEWSPAPER AND THE ASSOCIATED PRESS ARE APPEALING THE DECISION OTHER REPRESENTATIVES OF THE MEDIA ALSO DEFEND THIS KIND OF COVERAGE SAYING THAT JURORS OFTEN WANT TO STAND UP FOR A VERDICT THAT'S BEEN PUBLICLY ATTACKED AFTER REACHING A CONTROVERSIAL DECISION MANY JURORS GENUINELY WANT TO EXPLAIN WHY THEY HEAR PEOPLE SAYING THAT THE VERDICT DOESN'T MAKE SENSE THAT IT WAS RACIST SAID TOM BETTAG EXECUTIVE PRODUCER OF ABC'S NIGHTLINE NEWS PROGRAM OTHERS DON'T AGREE THIS MODERNDAY PHENOMENON OF POSTVERDICT JUROR INTERVIEWS BODES ILL FOR THE CONTINUED VITALITY AND AUTHORITATIVENESS OF THE JURY SYSTEM JUDGE POLITAN SAID IN HIS OPINION HE ADDED THAT THE PHENOMENON TEACHES THE PUBLIC WHICH IS MADE UP OF COUNTLESS POTENTIAL JURORS THAT JURY DELIBERATIONS ARE NOT SECRET JUDGE POLITAN'S DECISION MAY MAKE HIM ONE OF THE MOST OUTSPOKEN JUDGES ON THE ISSUE BUT HE ISN'T ALONE IN HIS OPINION PROF ABRAHAM S GOLDSTEIN OF YALE LAW SCHOOL WHO HAS WRITTEN ON THE ISSUE SAID MANY JUDGES AROUND THE COUNTRY ARE GROWING UNCOMFORTABLE WITH THE NEWS MEDIA'S FOCUS ON POSTVERDICT INTERVIEWS THE MAIN CONCERN OF SOME JUDGES IS THAT JURORS EVEN IN MUNDANE TRIALS WILL BE INFLUENCED BY THE HIGHLY VISIBLE ROLES THEY SEE CELEBRITY JURORS TAKE THE JUDGES FEAR THAT JURORS WON'T FEEL SAFE SPEAKING CONFIDENTIALLY INSIDE THE JURY ROOM AND WILL BE LESS CANDID IN THEIR DISCUSSIONS JUDGES AND OTHERS ALARMED ABOUT POSTVERDICT INTERVIEWS SAY THAT REVEALING THE WORKINGS OF JURY DELIBERATIONS WHICH TEND TO BE MORE ART THAN SCIENCE COULD WEAKEN PUBLIC CONFIDENCE IN VERDICTS JURIES DON'T NECESSARILY REASON THE WAY A JUDGE OR LAWYER WOULD AND THEY OFTEN MAKE COMPROMISES THE LAW DOESN'T SPECIFICALLY ALLOW WE'VE CREATED AN IMPENETRABLE INSCRUTABLE BODY TO DO VARIOUS JOBS THAT WE DON'T WANT TO MAKE EXPLICIT PROF GOLDSTEIN SAID OTHER JUDGES AND RESEARCHERS HOWEVER SAY OPPONENTS OF POSTVERDICT INTERVIEWS UNDERESTIMATE JURORS' SOPHISTICATION SOME OF IT IS A LITTLE PATERNALISTIC SAID TERRI WALLER MANAGING PARTNER OF THE OAKLAND CALIF OFFICE OF THE NATIONAL JURY PROJECT A TRIALCONSULTING FIRM THOUGH MANY JURORS SAY THE POSSIBILITY OF MEDIA ATTENTION ADDS TO THE STRESS OF JURY DUTY IT ISN'T NECESSARILY THEIR MOST PRESSING WORRY IF I GOT STUCK ON A HIGHPROFILE CASE IT WOULD STINK SAID EDWARD MEADOWS RECENTLY ON JURY DUTY IN STATE COURT IN NEW YORK BUT MR MEADOWS 29 YEARS OLD SAID HE WOULD BE MORE CONCERNED ABOUT THE LENGTH OF THE TRIAL THAN ABOUT COPING WITH REPORTERS A SURVEY OF JURORS IN A RECENT POLICEBRUTALITY CASE WHICH RECEIVED NATIONAL COVERAGE FOUND THAT A THIRD WERE UNEASY ABOUT BEING CONTACTED BY THE NEWS MEDIA AFTER THE VERDICT SAID THOMAS MUNSTERMAN DIRECTOR OF THE CENTER FOR JURY STUDIES AT THE NATIONAL CENTER FOR STATE COURTS BUT IN THEIR INDIVIDUAL COMMENTS ON THE SURVEY NONE OF THE JURORS SAID THAT WORRIES ABOUT THE MEDIA HAD INTERFERED WITH THE DELIBERATIONS MR MUNSTERMAN SAID OF COURSE JURY DELIBERATIONS ARE CLOSED NOT JUST TO THE PUBLIC BUT TO JUDGES AND LAWYERS AS WELL AND SOME TRIAL JUDGES SAID THEY WELCOMED THE INSIGHT THAT POSTVERDICT INTERVIEWS WITH JURORS HAVE PROVIDED I'M VERY CURIOUS ABOUT WHAT GOES ON IN THAT ROOM I FIND IT VERY EDUCATIONAL SAID JUDGE LADORIS HAZZARD CORDELL OF CALIFORNIA SUPERIOR COURT IN SAN JOSE JUDGE CORDELL WHO REGULARLY SEEKS FEEDBACK FROM JURORS ON HOW TO IMPROVE THE JURY PROCESS SAID POSTVERDICT INTERVIEWS ALERT TRIAL JUDGES TO BE ON GUARD FOR POSSIBLE PROBLEMS RATHER THAN HAVE A CHILLING EFFECT ON JURORS' PARTICIPATION SHE SAID THE INFORMATION CAN BE USED TO IMPROVE THE JURY SYSTEM FOR INSTANCE JUDGE CORDELL TAPE RECORDS HER INSTRUCTIONS TO A JURY ON THE LAW IN A CASE AND THEN LETS THE JURY HAVE THE TAPE IN THE JURY ROOM SHE SAID SHE MADE THAT CHANGE AFTER FINDING THAT JURORS OFTEN MISUNDERSTOOD OR DISREGARDED THE INSTRUCTIONS A JURY HAS AWARDED 77 MILLION IN PUNITIVE DAMAGES TO THE ESTATE OF A WOMAN WHOSE HEALTHMAINTENANCE ORGANIZATION REFUSED TO PAY FOR A BONEMARROW TRANSPLANT TO TREAT HER BREAST CANCER LAST WEEK THE SAME RIVERSIDE CALIF JURY AWARDED THE ESTATE MORE THAN 12 MILLION IN DAMAGES FOR BREACH OF CONTRACT AND OTHER ALLEGATIONS MADE BY THE WOMAN'S FAMILY PUNITIVE DAMAGES WHICH ARE DESIGNED TO PUNISH AND DETER EGREGIOUS WRONGDOING ARE OFTEN REDUCED BY TRIAL JUDGES BONEMARROW TRANSPLANTS ARE INCREASINGLY BEING USED TO TREAT BREAST CANCER BUT MANY INSURERS HAVE ARGUED THAT THE TREATMENT IS EXPERIMENTAL AND THEY HAVE REFUSED TO COVER IT THE CASE AGAINST THE HEALTH NET HEALTHMAINTENANCE ORGANIZATION IS EXPECTED TO ATTRACT THE ATTENTION OF OTHER HMOS AND INSURERS MANY OF WHICH ARE GRAPPLING WITH WHETHER TO COVER THIS AND OTHER EXPENSIVE AND CONTROVERSIAL TREATMENTS HEALTH NET A WOODLAND HILLS CALIF UNIT OF HN MANAGEMENT HOLDINGS SAID IT WOULD ASK FOR A NEW TRIAL AND IF NECESSARY APPEAL THE VERDICT OF THE SUPERIOR COURT JURY IN A STATEMENT THE COMPANY SAID THE JUDGMENT IS CONTRARY TO THE EVIDENCE PRESENTED IN THE CASE THE COMPANY SAID THAT THE EMOTIONAL ASPECTS OF THE CASE CAUSED THE JURY TO RENDER AN UNWARRANTED AWARD AGAINST THE COMPANY AND THAT HEALTH NET HAD ACTED IN THE BEST INTERESTS OF NELENE FOX THE PATIENT WHO DIED IN APRIL MARK HIEPLER MS FOX'S BROTHER AND THE LAWYER FOR THE ESTATE SAID HE HOPES THE VERDICT SENDS A MESSAGE TO INSURANCE COMPANIES AND HMOS THAT YOU GOTTA DO THAT WHICH YOU PUT IN CONTRACTS AND SAY THAT YOU'LL DO ELLEN JOAN POLLOCK CONTRIBUTED TO THIS ARTICLE BOB COMMENTING ON FIRST DAY OF DELIBERATIONS SO WE STARTED ARGUING RIGHT AWAY AND FIGHTING I WOULD SAY THERE WAS SOME CONSIDERABLE FIGHTING IN THERE KOPPEL FIRST DAY BOB PERSONALITIES WERE COMING TO THE TOP OK AND IT WAS UGLY KOPPEL YOU HAD LIKED EACH OTHER UP UNTIL THEN OR GOTTEN ALONG REASONABLY WELL BOB YES OH YEAH EXCELLENT NO ARGUMENTS NO NOTHING AND ALL OF A SUDDEN OK I'M RIGHT AND YOU'RE WRONG AND SO I'VE BEEN TOLD THAT THERE WAS REPORTS THAT WE WERE MAKING A LOT OF NOISE IN THERE WE WERE MAKING A LOT OF NOISE BOB SOMEWHAT I THINK THAT THERE WAS 12 PEOPLE THAT HAD TO MAKE A DECISION WENT THROUGH A PROCESS SAW A LOT OF EVIDENCE LISTENED WENT THROUGH A LOT OF STRESS DID A LOT OF PECULIAR THINGS TO GET THIS DECISION AND FOR SOMEONE POLITICIANS ANYONE TO SAY THAT WE DID A GOOD JOB OR TO SAY THAT WE DID A BAD JOB IN THE OTHER CASE THAT'S NOT PART OF THE PROCESS THE PROCESS IS THAT WE MADE THE DECISION AND WE FEEL COMFORTABLE WITH OUR DECISION AND SECONDGUESSING DOESN'T HELP IF ANYTHING IT CAUSES RIOTS I BELIEVE 9312300121 931230 FINANCING BUSINESS PAPA JOHN'S INTERNATIONAL INC PAPA JOHN'S INTERNATIONAL INC SAID IT FILED A PROPOSED OFFERING OF 12 MILLION COMMON SHARES WITH THE SECURITIES AND EXCHANGE COMMISSION OF THE SHARES 775000 WILL BE OFFERED BY THE LOUISVILLE KY COMPANY AND 425000 WILL BE OFFERED BY SELLING SHAREHOLDERS THE OFFERING WILL BE MADE THROUGH MONTGOMERY SECURITIES AND ALEX BROWN & SONS INC THE COMPANY'S NET PROCEEDS WILL BE USED PRIMARILY TO FINANCE THE DEVELOPMENT OF ADDITIONAL COMPANYOWNED RESTAURANTS AND COMMISSARIES PAPA JOHN'S OPERATES AND FRANCHISES PIZZADELIVERY AND CARRYOUT RESTAURANTS IN 19 STATES 9312300119 931230 INTERNATIONAL JAPAN CONSIDERS USING PUBLIC FUNDS TO ASSIST LENDERS A WALL STREET JOURNAL ROUNDUP JAPANESE POLITICIANS ARE FLOATING THE IDEA OF USING PUBLIC FUNDS TO HELP GET BAD REALESTATE LOANS OFF FINANCIAL INSTITUTIONS' BOOKS IN A BID TO EASE A PROBLEM THAT HAS PROLONGED JAPAN'S ECONOMIC DOWNTURN IT ISN'T CLEAR WHETHER THE TRIAL BALLOON WILL GO ANYWHERE JAPAN CONSIDERED INJECTING GOVERNMENT MONEY INTO AN ENTITY THAT WAS SET UP ABOUT A YEAR AGO TO PURCHASE BAD ASSETS FROM MAJOR LENDERS BUT THAT IDEA WAS REJECTED BECAUSE OF RESISTANCE FROM THE PUBLIC AND FROM THE POWERFUL MINISTRY OF FINANCE SINCE ITS ESTABLISHMENT THE CREDITPURCHASING ENTITY HASN'T BOUGHT ENOUGH LOANS TO PROP LAND PRICES OR RELIEVE THE BADDEBT BURDEN ONE PROPOSED MEASURE REPORTED WEDNESDAY IN THE DAILY YOMIURI SHIMBUN IS FOR THE GOVERNMENT TO JOIN WITH FINANCIAL INSTITUTIONS IN CREATING A NEW AGENCY THAT WOULD BUY REAL ESTATE THAT IS HELD AS COLLATERAL ON THE INSTITUTIONS' BAD LOANS THE AGENCY WOULD BE FINANCED PARTLY BY THE LENDERS AND PARTLY BY A GOVERNMENT INVESTMENT FUND AND WOULD BE THE FIRST SUCH ORGAN TO USE PUBLIC MONEY THE NEWSPAPER SAID CITING UNIDENTIFIED GOVERNMENT SOURCES A SECOND PROPOSAL ISSUED TUESDAY BY SHINSEITO A PARTY IN JAPAN'S COALITION GOVERNMENT CALLS FOR SETTING UP AN ENTITY THAT WOULD BUY BAD LOANS FROM SMALL FINANCIAL INSTITUTIONS THE ORGANIZATION WOULD USE FUNDS LENT BY THE BANK OF JAPAN A PARTY SPOKESMAN SAID A FINANCE MINISTRY OFFICIAL SAID HE DIDN'T KNOW WHETHER THE MINISTRY WAS ENTERTAINING THE IDEAS HE ADDED HOWEVER THAT MINISTRY OFFICIALS HAVE VERY STRONG FEELINGS AGAINST PUTTING PUBLIC MONEY INTO SUCH SCHEMES COMMERCIALPROPERTY PRICES HAVE FALLEN ABOUT 50 IN TOKYO SINCE THE LATE1980S PEAK MANY REALESTATE INVESTORS HAVE BEEN UNABLE TO REPAY THEIR LOANS SADDLING JAPANESE LENDERS WITH BAD DEBTS AS A RESULT THE BADDEBT PROBLEM HAS CAUSED BANKS TO TIGHTEN CREDIT AND HAS LED TO A DROP IN CONFIDENCE IN THE FINANCIAL SYSTEM JAPAN'S BIGGEST INSTITUTIONS HAVE AN ESTIMATED 15 TRILLION YEN 13472 BILLION IN BAD DEBT 9312300113 931230 POLITICS & POLICY US IS CONSIDERING SANCTIONS AS CHINA FACES DEADLINES ON SEVERAL TRADE ISSUES BY WALL STREET JOURNAL REPORTERS LAURENCE ZUCKERMAN IN HONG KONG AND ASRA Q NOMANI IN WASHINGTON CLINTON ADMINISTRATION OFFICIALS ARE CONSIDERING IMPOSING TRADE SANCTIONS AGAINST CHINA AS THE TWO SIDES FACE DEADLINES TOMORROW ON SEVERAL BILATERAL TRADE ISSUES US OFFICIALS SAID A DECISION IS EXPECTED NO SOONER THAN EARLY NEXT WEEK WHEN US TRADE REPRESENTATIVE MICKEY KANTOR AND OTHER WHITE HOUSE OFFICIALS ARE TO DISCUSS HOW TO HANDLE VARIOUS TRADE DISPUTES WITH CHINA CHINA FACES DEADLINES ON SEVERAL FRONTS INCLUDING TEXTILES MARKET ACCESS AND SANITARY STANDARDS THAT RESTRICT IMPORTS OF AGRICULTURAL PRODUCTS BEIJING HAS GONE TO THE BRINK WITH WASHINGTON SEVERAL TIMES IN THE PAST SEVERAL YEARS ONLY TO STEP BACK AT THE ELEVENTH HOUR BUT WASHINGTON'S TOUGH TACTICS IN PAST TRADE TALKS AS WELL AS PRESIDENT CLINTON'S EMPHASIS IN RECENT MONTHS ON IMPROVING RELATIONS WITH CHINA MAY HAVE FIRMED BEIJING'S RESOLVE TO WITHSTAND US PRESSURE THIS TIME AROUND MOREOVER THESE DEADLINES DON'T LOOM NEARLY AS LARGE AS IN PAST SHOWDOWNS IN 1992 BEIJING FACED THE PROSPECT OF IMMEDIATE TARIFF INCREASES ON HUNDREDS OF ITEMS UNLESS IT SIGNED AGREEMENTS COMPELLING IT TO RESPECT INTERNATIONAL COPYRIGHTS AND PERMIT MORE FOREIGN IMPORTS NOW IT CONFRONTS ONLY THE VAGUE THREAT OF FUTURE SANCTIONS THE MOST NETTLESOME ISSUE IS TEXTILE NEGOTIATIONS AIMED AT HAMMERING OUT A NEW AGREEMENT GOVERNING 45 BILLION OF CHINESE TEXTILE EXPORTS TO THE US THE CURRENT ACCORD EXPIRES TOMORROW AND THE TWO SIDES ARE AT AN IMPASSE US NEGOTIATORS BROKE OFF TALKS ON THE ISSUE THIS MONTH AND SAY THEY ARE PREPARED TO MEET AGAIN ONLY IF THEIR CHINESE COUNTERPARTS ARE SERIOUS ABOUT REACHING AN AGREEMENT WE FELT THAT WE WERE MAKING NO PROGRESS SAID A SENIOR US TRADE OFFICIAL IN WASHINGTON THE AGREEMENT COVERS THE LEVEL OF CHINA'S TEXTILE AND APPAREL EXPORT QUOTAS TO THE US UNDER THE MULTIFIBER ARRANGEMENT AN INTERNATIONAL CONVENTION GOVERNING TEXTILE TRADE IN OTHER DISPUTE AREAS BEIJING IS SUPPOSED TO FULFILL BY TOMORROW SOME OF THE PLEDGES INCLUDED IN A SOCALLED MARKETACCESS AGREEMENT REACHED IN OCTOBER 1992 AS PART OF THE PACT CHINA AGREED TO PUBLISH ITS TRADE LAWS AND REMOVE QUOTAS AND IMPORTLICENSING REQUIREMENTS ON HUNDREDS OF ITEMS OVER TWO YEARS BY TOMORROW CHINA ALSO IS SUPPOSED TO MAKE HEADWAY TOWARD THE ELIMINATION OF RESTRICTIVE SANITARY STANDARDS US AND CHINESE NEGOTIATORS CONCLUDED MEETINGS IN BEIJING LAST WEEK WITHOUT RESOLVING THESE TWO ISSUES BUT ANOTHER US OFFICIAL LEFT OPEN THE POSSIBILITY THAT THE DISPUTES COULD BE RESOLVED IF THE CHINESE FOLLOW THROUGH ON THEIR PAST PLEDGES IN THE TEXTILE DISPUTE WASHINGTON IS ANGRY OVER WHAT IT CLAIMS ARE MORE THAN 2 BILLION OF CHINESEMADE TEXTILES AND APPAREL SHIPPED ILLEGALLY TO THE US EACH YEAR THROUGH THIRD COUNTRIES IT HAS PROPOSED THAT THE NEW AGREEMENT CUT CHINA'S OVERALL QUOTA BY 25 IN MOST CATEGORIES AND AS MUCH AS 35 IN THE EIGHT CATEGORIES IN WHICH THE ALLEGEDLY ILLEGAL TRANSSHIPMENTS ARE MOST PREVALENT IT ALSO IS INSISTING THAT THE NEW ACCORD CONTAIN LANGUAGE ALLOWING THE US TO DEDUCT THREE TIMES THE AMOUNT OF ILLEGAL SHIPMENTS SEIZED IF CHINA REFUSES TO COOPERATE IN CRACKING DOWN ON THE PRACTICE IF THE CHINESE REFUSE TO AGREE WASHINGTON HAS THREATENED TO REDUCE THE COUNTRY'S QUOTA LEVELS UNILATERALLY BEIJING HAS TERMED WASHINGTON'S DEMANDS UNACCEPTABLE IN A STATEMENT SENT TO THIS NEWSPAPER LAST MONTH ZHOU KEREN THE CHIEF TEXTILE NEGOTIATOR FOR CHINA'S TRADE MINISTRY DISPUTED US ESTIMATES OF THE SIZE OF THE ILLEGAL SHIPMENTS AND SAID BEIJING OPPOSES ANY UNILATERAL DEDUCTION OF CHINA'S QUOTAS WITHOUT CLEAR EVIDENCE OF VIOLATIONS A DEAL IS CRUCIAL FOR THE CHINESE THE 45 BILLION OF TEXTILES AND GARMENTS IT SHIPPED TO THE US UNDER QUOTA LAST YEAR ACCOUNTED FOR SLIGHTLY MORE THAN 5 OF THE COUNTRY'S TOTAL EXPORTS FOR THE US LACK OF A QUOTA AGREEMENT PROBABLY WOULD LEAD TO EVEN MORE CHINESEMADE GARMENTS ENTERING THE COUNTRY ILLEGALLY FOR THAT REASON THE CLINTON ADMINISTRATION IS MAKING CLEAR ITS WILLINGNESS TO BARGAIN IF THEY NEGOTIATE THE SENIOR US TRADE OFFICIAL SAID OF THE CHINESE THEY WILL END UP IN A BETTER POSITION THAN IF WE ARE FORCED TO TAKE UNILATERAL ACTION ROY DELBYCK PRESIDENT OF THE AMERICAN CHAMBER OF COMMERCE IN HONG KONG BELIEVES THAT THE CHINESE WILL ULTIMATELY MAKE A MOVE THOUGH NOT NECESSARILY BEFORE THE DEADLINE THERE WILL BE A DEAL BECAUSE I DON'T THINK GOING WITHOUT ONE IS EITHER IN THE INTERESTS OF THE U S OR CHINA HE SAID ROY DELBYCK IS VICE PRESIDENT OF THE AMERICAN CHAMBER OF COMMERCE IN HONG KONG AN ARTICLE YESTERDAY INCORRECTLY SAID HE WAS THE GROUP'S PRESIDENT 9312300111 931230 WEDNESDAY'S MARKETS INDUSTRIALS RISE A BIT TO RECORD BONDS DECLINE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE CREPT TO A THIRDSTRAIGHT RECORD BOND PRICES FELL AND THE DOLLAR ROSE THE INDUSTRIAL AVERAGE ADDED A SCANT 056 POINT TO 379433 STANDARD & POOR'S 500STOCK INDEX FELL 036 TO 47058 AND THE NASDAQ COMPOSITE INDEX ROSE 392 TO 76848 THE INDUSTRIAL AVERAGE CLIMBED IN EARLY TRADING NEARLY CRACKING THE 3800 LEVEL BUT THEN SPENT MOST OF THE DAY IN NEGATIVE TERRITORY UNTIL JUST BEFORE THE CLOSE INVESTORS WERE GREETED EARLY BY SOME POSITIVE ECONOMIC NEWS THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS ROSE 05 IN NOVEMBER AND EXISTINGHOME SALES JUMPED A BETTERTHANEXPECTED 29 THE DOW JONES TRANSPORTATION AVERAGE DECLINED AFTER HITTING A RECORD ON TUESDAY BUT LARRY RICE CHIEF MARKET STRATEGIST AT JOSEPHTHAL LYON & ROSS WASN'T SURPRISED THAT THE AVERAGE SLIPPED THE HISTORY OF THIS MARKET LATELY IS THAT YOU GET MARGINAL NEW HIGHS IN THE AVERAGES AND THEN THEY BACK OFF HE SAID BOND PRICES HARDLY REACTED TO THE UPBEAT ECONOMIC NEWS AS BOND TRADING CONTINUED TO DWINDLE AHEAD OF THE NEW YEAR'S HOLIDAY WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 043 TO 11110 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2693 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1170 ISSUES ROSE AND 859 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 1/8 POINT OR MORE THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 624 THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17275 MARKS AND 11174 YEN COMPARED WITH 16990 MARKS AND 11136 YEN TUESDAY 9312300108 931230 BUSINESS BRIEF ORION CAPITAL CORP STAKE IN INTERCARGO GROWS TO 20 WITH STOCK PURCHASE ORION CAPITAL PRIMARILY A PROPERTY AND CASUALTY INSURANCE CONCERN BASED IN NEW YORK SAID IT ACQUIRED 306484 SHARES FROM HARPER GROUP INC SAN FRANCISCO HARPER GROUP NO LONGER HOLDS A STAKE IN INTERCARGO AN INSURANCE COMPANY SPECIALIZING IN INTERNATIONAL TRADE AND TRANSPORTATION COVERAGE BASED IN SCHAUMBURG ILL IN ADDITION ORION ACQUIRED 500000 NEWLY ISSUED SHARES FROM INTERCARGO ORION NOW HOLDS ABOUT 15 MILLION INTERCARGO SHARES THE AMOUNT PAID WASN'T IMMEDIATELY AVAILABLE 9312300107 931230 LETTERS TO THE EDITOR UNIONIZING BIG MAC WE READ WITH GREAT INTEREST YOUR NOV 9 ARTICLE ON TRADE UNION ORGANIZING AT MCDONALD'S CANADA HOWEVER THE MCDONALD'S OFFICIALS YOU CITE AS STATING THAT NONE OF THE 13670 MCDONALD'S RESTAURANTS WORLDWIDE ARE UNIONIZED ARE FORTUNATELY MISINFORMED DESPITE MANY FRANCHISE OWNERS' BEST EFFORTS TRADE UNIONS AFFILIATED TO OUR ORGANIZATION HAVE SIGNED COLLECTIVE BARGAINING AGREEMENTS WITH MCDONALD'S IN AMONG OTHER COUNTRIES SWEDEN DENMARK GERMANY ICELAND AND NORWAY 9312300105 931230 PAYMENT OF 3 MILLION BY COMMONWEALTH EDISON ENDS BIAS CASE CHICAGO COMMONWEALTH EDISON CO SAID IT AGREED TO A 33 MILLION SETTLEMENT OF A DISCRIMINATION COMPLAINT FILED IN 1988 BY THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION COMMONWEALTH EDISON SAID THAT UNDER THE CONSENT DECREE THE COMPANY WILL PAY 3 MILLION TO CERTAIN WOMEN WHO APPLIED FOR METERREADER JOBS DURING THE 1980S BUT WERE NOT HIRED IT ALSO AGREED TO FUND A 300000 TRAINING PROGRAM FOR WOMEN WHO ARE INTERESTED IN NUCLEAR OPERATING AND OTHER TECHNICAL JOBS IN THE SETTLEMENT COMMONWEALTH EDISON DIDN'T ADMIT TO WRONGDOING THE EEOC IN A SEPARATE RELEASE SAID THAT IT THINKS THE CONSENT DECREE REPRESENTS A VERY FAVORABLE RESOLUTION OF ITS SUIT MANY WOMEN WHO WERE REJECTED BY COMMONWEALTH EDISON FOR JOBS IN THE PAST WILL RECEIVE MONETARY RELIEF IT SAID ADDING PERHAPS MORE IMPORTANT THE COMPANY'S RECORD OF HIRING WOMEN FOR METERREADER JOBS HAS IMPROVED SIGNIFICANTLY FROM THE TIME THE EEOC FILED ITS SUIT AN EEOC ATTORNEY ALSO SAID THAT THE TRAINING FUND THE COMPANY WILL ESTABLISH DESIGNED TO HELP WOMEN OBTAIN AND SUCCEED IN JOBS NOT TRADITIONALLY HELD BY WOMEN REPRESENTS AN INNOVATIVE METHOD OF RESOLVING AN EMPLOYMENT DISCRIMINATION SUIT COMMONWEALTH EDISON'S SETTLEMENT WILL GO TO WOMEN WHO APPLIED FOR A METERREADER POSITION AT ANY COMMONWEALTH EDISON LOCATION FROM DECEMBER 1981 THROUGH DECEMBER 1985 AND AT CERTAIN COMMONWEALTH EDISON LOCATIONS BETWEEN 1987 AND 1989 9312300103 931230 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL FARM CREDIT BANKS FUNDING CORP 216 BILLION IN THREE ISSUES OF CONSOLIDATED BONDS INCLUDING 116 BILLION OF BONDS MATURING APRIL 4 1994 AT 316 A SPREAD OF THREE BASIS POINTS ABOVE COMPARABLE TREASURYS AND WITH A SELLING CONCESSION OF 30 CENTS 645 MILLION OF BONDS MATURING JULY 7 1994 PRICED AT 332 A SPREAD OF ONE BASIS POINT ABOVE COMPARABLE TREASURYS AND WITH A SELLING CONCESSION OF 50 CENTS AND 354 MILLION OF BONDS MATURING JAN 3 1995 PRICED AT 361 A SPREAD OF FOUR BASIS POINTS ABOVE TREASURYS AND WITH A SELLING CONCESSION OF 75 CENTS THE ISSUES WILL BE DATED AND DELIVERED JAN 3 1994 FEDERAL NATIONAL MORTGAGE ASSOCIATION 600 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 199410 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 715 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CS FIRST BOSTON INC THE OFFERING SERIES 19947 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 479 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CS FIRST BOSTON INC THE OFFERING SERIES 199411 IS BACKED BY THE AGENCY'S 335 MILLION REMIC TRUST 1992129 CLASS G AND 144 MILLION OF THE AGENCY'S SEVENYEAR 6 BALLOON CERTIFICATES NISSAN INTERNATIONAL FINANCE NETHERLANDS BV JAPANESE PARENT 100 MILLION OF FLOATINGRATE EURONOTES DUE JUNE 10 1998 AT AN ISSUE PRICE 10045 VIA FUJI INTERNATIONAL FINANCE PLC QUARTERLY COUPON FLOATS FLAT AT THE THREEMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS GUARANTEED BY NISSAN MOTOR CO SOCIETE GENERALE ACCEPTANCE NV FRENCH PARENT 800 MILLION FRENCH FRANCS OF REVERSECOUPON FLOATINGRATE NOTES DUE APRIL 13 2004 AT ISSUE PRICE 995 VIA SOCIETE GENERALE FIRST COUPON OF 7 ON OCT 13 1994 AND THEREAFTER 1425 LESS 185 MULTIPLIED BY THE THREEMONTH PARIS INTERBANK OFFERED RATE INTEREST PAID QUARTERLY WITH A MINIMUM OF ZERO GUARANTEED BY SOCIETE GENERALE 9312300102 931230 BUSINESS BRIEF CSX CORP UNIT TO BUY LOCOMOTIVES FROM GE OVER FOUR YEARS CSX TRANSPORTATION INC SAID IN RICHMOND VA THAT IT WILL PURCHASE 300 LOCOMOTIVES FROM GE TRANSPORTATION SYSTEMS OVER THE NEXT FOUR YEARS TERMS WEREN'T DISCLOSED AN ARTICLE IN THE WALL STREET JOURNAL LAST WEEK WHICH INDICATED THE DEAL WAS IMMINENT ESTIMATED THE VALUE OF THE CONTRACT WOULD APPROACH 600 MILLION CSX TRANSPORTATION A UNIT OF CSX CORP SAID IT WILL BEGIN TAKING DELIVERY UNDER THE CONTRACT IN 1994 MOST OF THE NEW LOCOMOTIVES WILL UTILIZE NEW AC OR ALTERNATING CURRENT DIESELELECTRIC TECHNOLOGY FIFTYTHREE OF THE NEW LOCOMOTIVES WILL HAVE 6000HORSEPOWER ENGINES GE TRANSPORTATION IS A UNIT OF GENERAL ELECTRIC CO FAIRFIELD CONN 9312300101 931230 WHO'S NEWS HARKEN ENERGY CORP HARKEN ENERGY CORP DALLAS THE OIL COMPANY SAID THAT ITS 40YEAROLD PRESIDENT HARVEY RISIEN RESIGNED TO PURSUE PERSONAL BUSINESS PLANS AND OPPORTUNITIES MR RISIEN HAD SERVED AS PRESIDENT OF HARKEN SINCE FEBRUARY WHEN THE ACQUISITION OF CHUSKA RESOURCES CORP WAS COMPLETED HE ASSISTED IN THE PAST YEAR IN THE CONSOLIDATION OF THE TWO OPERATIONS HARKEN SAID MR RISIEN WILL REMAIN A DIRECTOR A HARKEN SPOKESMAN REFERRED ALL QUESTIONS ON MR RISIEN'S SUCCESSOR TO COMPANY CHAIRMAN MIKEL FAULKNER WHO WASN'T AVAILABLE TO COMMENT MR RISIEN WASN'T AVAILABLE EITHER THE SPOKESMAN SAID 9312300100 931230 CANADIAN NATIONAL SEES REQUEST FOR APPROVAL FOR CP RAIL MERGER MONTREAL CANADIAN NATIONAL RAILWAYS COULD ASK THE CANADIAN GOVERNMENT NEXT MONTH FOR PRELIMINARY APPROVAL TO MERGE ITS RAIL OPERATIONS EAST OF MANITOBA WITH THOSE OF CANADIAN PACIFIC LTD CANADIAN NATIONAL'S PRESIDENT AND CHIEF EXECUTIVE PAUL TELLIER SAID MR TELLIER SAID CANADIAN NATIONAL OWNED BY THE GOVERNMENT AND CANADIAN PACIFIC'S CP RAIL SYSTEM ARE NEARING COMPLETION OF A STUDY ON RATIONALIZING THEIR EASTERN NETWORKS POSSIBLY INCLUDING US LINES WE THINK A MERGER IS QUITE PROMISING HE SAID THE TWO FREIGHTRAIL COMPANIES HAVE BEEN IN TALKS FOR THE PAST YEAR MR TELLIER SAID A PROPOSAL UNDER STUDY WOULD INVOLVE CREATION OF A NEW COMPANY TO HOLD THE ASSETS OF THE RAILROADS FROM WINNIPEG MANITOBA TO HALIFAX NOVA SCOTIA CANADIAN NATIONAL'S GRAND TRUNK RAILWAY FROM PORT HURON MICH TO CHICAGO AND CINCINNATI VERY LIKELY WOULD BE INCLUDED IN THE MERGER HE SAID CAPITAL MANAGEMENT AND OWNERSHIP STRUCTURES FOR THE NEW COMPANY WOULD BE NEGOTIATED IF THE CANADIAN GOVERNMENT ENDORSES THE CONCEPT MR TELLIER SAID THE PLAN WOULD ALSO FACE FURTHER REGULATORY HURDLES A SPOKESMAN FOR CP RAIL MONTREAL STRESSED THAT NO CONCLUSION HAS YET RESULTED FROM THE TALKS AND DECLINED TO COMMENT ON MR TELLIER'S ASSESSMENT OF THE SITUATION 9312300099 931230 MARKETING & MEDIA CONCORD MONITOR PLANS AN APPEAL OF RULING ON OVERTIME WAGES CONCORD NH THE CONCORD MONITOR SAID IT PLANS TO APPEAL A FEDERAL COURT RULING THAT IT PAY REPORTERS AND PHOTOGRAPHERS OVERTIME WAGES BECAUSE THEY AREN'T CONSIDERED PROFESSIONALS THE DECISION BY JUDGE SHANE DEVINE IN THE US DISTRICT COURT IN CONCORD LAST MONTH REQUIRED THE MONITOR TO PAY A GROUP OF 12 REPORTERS AND PHOTOGRAPHERS 21000 IN DAMAGES FOR FAILURE TO PAY OVERTIME UNDER THE FAIR LABOR STANDARDS ACT THE RULING APPLIED TO WORK PERFORMED FROM JUNE 1979 TO JANUARY 1980 JUDGE DEVINE SAID IN HIS DECISION THAT JOURNALISTS BY AND LARGE DON'T REQUIRE EXTRA STUDY OR DEGREES NOR DO THEY MEET THE CREATIVITY CRITERIA OF ARTISTIC EXEMPTION AND THEREFORE HAD LITTLE IN COMMON WITH WORKERS REGARDED AS PROFESSIONALS MICHAEL PRIDE EDITOR OF THE MONITOR SAID WE BELIEVE REPORTERS ARE PROFESSIONALS WE THINK THE COURT MADE A MISTAKE IN NOT FINDING IT THAT WAY THE DECISION WILL BE APPEALED TO THE FIRST CIRCUIT COURT OF APPEALS IN BOSTON HE SAID 9312300098 931230 INTERNATIONAL BANESTO'S FINANCIAL CRISIS SPILLS OVER PUMMELS STOCKS OF OTHER SPANISH BANKS BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL MADRID THE FINANCIAL TROUBLES AT BANCO ESPANOL DE CREDITO SPILLED OVER INTO THE MADRID STOCK EXCHANGE YESTERDAY HITTING BANK STOCKS ESPECIALLY HARD BANESTO AS SPAIN'S FOURTHLARGEST BANK IS KNOWN SAID THERE HAD BEEN NO RUN ON ITS DEPOSITS FOLLOWING NEWS EARLIER THIS WEEK THAT THE CENTRAL BANK WAS LAUNCHING A HUGE RESCUE PLAN BUT FINANCIAL MARKETS WERE CLEARLY SHAKEN AS RUMORS CIRCULATED THAT THE BANK MAY FACE POTENTIAL LOSSES OF AS MUCH AS 600 BILLION PESETAS 430 BILLION AND THAT OTHER BANKS MAY HAVE TO HELP PICK UP THE TAB AFTER FALLING ALMOST 3 AT THE MARKET'S OPENING THE MADRID GENERAL INDEX RECOVERED SOMEWHAT TO END YESTERDAY AT 31456 DOWN 478 POINTS OR 15 WHILE THE INDEX FOR BANK SHARES CLOSED AT 34606 A LOSS OF 125 POINTS OR 35 BANESTO SHARES WERE SUSPENDED INDEFINITELY ON TUESDAY BUT COMPANIES WITHIN THE BANESTO ORGANIZATION CONTINUED TO TRADE YESTERDAY AND THEY TOOK A BEATING HEAVILY LEVERAGED CONSTRUCTION COMPANY AGROMAN SA AND REALESTATE UNIT URBIS SA FOR INSTANCE BOTH FELL BY THE DAILY LEGAL LIMIT OF 15 BECAUSE OF THE LIMIT SHARES OF THE BANESTO COMPANIES ARE EXPECTED TO CONTINUE FALLING TODAY FOR OTHER SPANISH BANKS ONE OF THE KEY CONCERNS IS THEY MIGHT BE CALLED UPON TO FINANCE A RESCUE PLAN FOR BANESTO THAT WORRY DROVE DOWN THE SHARE PRICES OF BANCO SANTANDER BANCO BILBAO VIZCAYA BANCO POPULAR ARGENTARIA CORP BANCARIA DE ESPANA AND BANCO CENTRAL HISPANO THE CENTRAL BANK'S DECISION TUESDAY TO REPLACE CHAIRMAN MARIO CONDE AND THE ENTIRE BOARD OF BANESTO WITH AN EMERGENCY TEAM OF REPRESENTATIVES FROM SPAIN'S FIVE BIGGEST BANKS WAS PROMPTED BY AUTHORITIES' CONCERN THAT RUMORS ABOUT THE SERIOUSNESS OF THE BANK'S FINANCIAL STRAITS COULD LEAD TO A RUN ON ITS DEPOSITS ALTHOUGH BANKINGINDUSTRY EXECUTIVES SAID ANDALUSIA IN SOUTHERN SPAIN APPEARED TO BE THE ONLY REGION WHERE BANESTO CLIENTS WITHDREW DEPOSITS IN ANY SIGNIFICANT NUMBER YESTERDAY ANALYSTS EXPECT BANESTO TO LOSE AS MUCH AS 15 OF ITS 32 TRILLION PESETAS OF DEPOSITS IN THE WAKE OF THE CRISIS THE FULL EXTENT OF THE BANK'S PROBLEMS AREN'T EXPECTED TO BE KNOWN FOR WEEKS ALTHOUGH ECONOMY MINISTER PEDRO SOLBES AND BANK OF SPAIN GOV LUIS ANGEL ROJO ARE SCHEDULED TO APPEAR BEFORE A CONGRESSIONAL COMMITTEE TODAY TO EXPLAIN WHAT THEY CAN OF BANESTO'S PLIGHT ONE PROBLEM IS THAT BANESTO IS BELIEVED TO HAVE FAR EXCEEDED THE LEGAL LIMIT OF 5 ON TREASURY STOCK OR THE AMOUNT OF ITS OWN SHARES THAT EITHER IT OR ITS UNITS CAN HOLD MUCH OF THIS STOCK WAS ACCUMULATED WHEN THE BANK TRIED TO SHORE UP ITS OWN SHARE PRICE ACCORDING TO ANALYSTS BUT ANALYSTS PLAYED DOWN THE LONGTERM EFFECTS OF BANESTO'S CRISIS ON SPAIN'S OTHER LEADING BANKS ARGUING THAT ANY FINANCIAL EFFORT ON THE PART OF THE BANKS WOULD PROBABLY BE COMPENSATED BY CENTRALBANK MEASURES SUCH AS A CUT IN THE RESERVE REQUIREMENT THAT WOULD RELEASE FUNDS THAT ARE CURRENTLY DEPOSITED IN NOINTEREST ACCOUNTS AT THE BANK OF SPAIN THE WHOLE ORDEAL HAS AFFECTED THE PERCEPTION THAT THE MARKET HAS OF OTHER BANKS SAID AN OFFICIAL AT A RIVAL BANK BUT NOBODY SHOULD LINK BANESTO'S PERFORMANCE TO THAT OF OTHER BANKS MARKET ANALYSTS ARE WAGERING THAT BANESTO WILL EITHER BE SPLIT UP AMONG SPAIN'S OTHER BIG BANKS OR SOLD TO A SINGLE ENTITY STRONG ENOUGH TO INJECT THE CAPITAL BANESTO NEEDS IN ORDER TO RECOVER 9312300097 931230 MINORITYLOAN AGREEMENT THE MASSACHUSETTS ATTORNEY GENERAL SAID ONE OF THE STATE'S LARGEST RESIDENTIAL MORTGAGE LENDERS FIRST NH MORTGAGE CORP HAS AGREED TO ATTEMPT TO BRING IN MORE MINORITY LOAN APPLICANTS AND CHANGE ITS HANDLING OF MINORITY LOAN APPLICATIONS THE AGREEMENT WHICH STEMS FROM THE STATE'S INDUSTRYWIDE PROBE OF UNFAIR LENDING PRACTICES IS UNIQUE BECAUSE MORTGAGE COMPANIES GENERALLY AREN'T LEGALLY REQUIRED TO MEET THE LENDING NEEDS OF THE COMMUNITIES IN WHICH THEY DO BUSINESS THE ATTORNEY GENERAL'S OFFICE SAID FIRST NH MORTGAGE OF HOOKSETT NH WHICH HAS A RELATIVELY LOW NUMBER OF MINORITY MORTGAGE LOAN APPLICANTS AGREED TO RECRUIT MINORITY STAFFERS AND ADOPT A SECONDTIER REVIEW PROCESS FOR RESIDENTIAL LOAN DENIALS THE COMPANY WHOSE PRIMARY PLACE OF BUSINESS IS IN WESTERN MASSACHUSETTS ALSO AGREED TO ELIMINATE ALL REQUIREMENTS FOR MINIMUM LOAN AMOUNTS FIRST NH MORTGAGE IS A UNIT OF THE BANK OF IRELAND 9312300095 931230 REVIEW & OUTLOOK EDITORIAL SPECIAL CHOICES NEXT MONTH THE ARIZONA LEGISLATURE WILL DEBATE A SWEEPING EDUCATION REFORM BILL BOTH GOVERNOR FIFE SYMINGTON AND THE LEGISLATURE'S LEADERSHIP SUPPORT A PILOT VOUCHER PROGRAM THAT WOULD MAKE THE STATE ONE OF THE NATION'S LEADERS IN SCHOOL CHOICE THE MOST INTERESTING TWIST IN THE DEBATE CONCERNS WHAT'S USUALLY THE FIRST ARGUMENT OPPONENTS OF CHOICE MAKE THAT IT'S WRONG TO USE TAX DOLLARS TO EDUCATE CHILDREN IN PRIVATE SCHOOLS ARIZONA REFORMERS HAVE DISCOVERED THAT THEIR STATE LIKE NEARLY ALL OTHERS ALREADY SPENDS PUBLIC MONEY TO PAY THE TUITION OF STUDENTS AT PRIVATE SCHOOLS THE MONEY IS FOR SPECIAL ED KIDS WITH VARIOUS DISABILITIES NATIONWIDE SOME 100000 CHILDREN ARE INVOLVED CALIFORNIA SPENDS ABOUT 170 MILLION A YEAR ON PRIVATE INSTRUCTION AND PAYS TO SEND SOME STUDENTS TO OUTOFSTATE SCHOOLS SOME 2000 ARIZONA STUDENTS WITH EMOTIONAL OR PHYSICAL DISABILITIES ARE NOW EDUCATED AT TAXPAYER EXPENSE IN PRIVATE SCHOOLS WITH WHAT THE ARIZONA EDUCATION CODE ACTUALLY CALLS VOUCHERS IN ADDITION A STATE PROGRAM ALLOWS SCHOOL BOARDS TO DESIGNATE SEVERAL HUNDRED CHILDREN AS UNABLE TO PROFIT FROM PUBLIC SCHOOLS FOR THE MOST PART THIS APPLIES TO DISRUPTIVE STUDENTS AND PROVIDED THEIR PARENTS CAN BE PERSUADED TO CONSENT THEY ARE SENT TO PRIVATE SCHOOLS IN PHOENIX FOR EXAMPLE RAYMOND JACKSON IS A BLACK FORMER PUBLIC SCHOOL PRINCIPAL WHO NOW RUNS THE PRIVATE ATOP ACADEMY HE SAYS SEVERAL SCHOOL DISTRICTS SEND HIM PROBLEM CHILDREN OR GANG MEMBERS FOR TOUGH LOVE INSTRUCTION PAID FOR WITH VOUCHERS THOSE WHO SHAPE UP ARE SENT BACK TO PUBLIC SCHOOL THOSE WHO DON'T STAY AT ATOP HE SAYS PUBLIC SCHOOLS DON'T HAVE THE FLEXIBILITY TO RUN PROGRAMS SUCH AS HIS I LEFT INNERCITY PUBLIC SCHOOLS AFTER 20 YEARS OF FRUSTRATION HE TOLD US HE ADDS IT'S TIME WE GAVE ALL PARENTS MORE OPTIONS FOR THEIR KIDS THIS IS PRECISELY WHAT ARIZONA CHOICE ADVOCATES NOW PROPOSE THEY WANT TO ALLOW PARENTS AS WELL AS SCHOOL BOARDS THE RIGHT TO DECIDE IF ANY CHILD IS UNABLE TO PROFIT THEY ARE WILLING TO LIMIT THE NUMBER OF STUDENTS GETTING VOUCHERS TO A PILOT PROGRAM OF SOME 2000 STUDENTS OR ABOUT THE SAME NUMBER WHO CURRENTLY RECEIVE VOUCHERS THE ARIZONA VOTE WILL BE CLOSE THE MAJOR OBSTACLE REPUBLICANS IN MARGINAL SEATS WHO FEAR POLITICAL TERMINATION BY THE STATE TEACHERS' UNION IF THEY VOTE FOR CHOICE BUT WHILE THE ARIZONA EDUCATION ESTABLISHMENT LOBBIES AGAINST VOUCHERS ITS MEMBERS ARE PUSHING ANOTHER AMENDMENT TO THE ALTERNATIVE PLACEMENT LAW THAT WOULD ALLOW SCHOOL DISTRICTS TO SEND TROUBLESOME STUDENTS TO PRIVATE SCHOOLS WITHOUT THE PERMISSION OF THEIR PARENTS THEIR CHUTZPAH IS UNBELIEVABLE SAYS JEFF FLAKE HEAD OF THE GOLDWATER INSTITUTE IN PHOENIX WHILE THEY OPPOSE GIVING PARENTS CHOICE IN EDUCATION THEY WANT SCHOOL BUREAUCRATS TO HAVE MORE FREEDOM TO TRANSFER PROBLEM STUDENTS TO PRIVATE SCHOOLS THE RIGHTS OF PARENTS GOT A BIG BOOST LAST MONTH WHEN THE US SUPREME COURT UPHELD A LOWER COURT AWARD TO PARENTS OF A LEARNINGDISABLED SOUTH CAROLINA STUDENT WHO TOOK HER OUT OF AN INADEQUATE PUBLIC PROGRAM AND DEMANDED REIMBURSEMENT FOR HER PRIVATE EDUCATION EARLIER IN ITS TERM THE COURT UPHELD PAYMENTS TO PROVIDE AN INTERPRETER FOR AN ARIZONA DEAF STUDENT ATTENDING A RELIGIOUS SCHOOL THE TRADITIONAL BARRIERS TO PAYMENTS TO PRIVATE SCHOOLS ARE RAPIDLY ERODING AT LEAST FOR THE DISABLED THE QUESTION RAISED IN ARIZONA IS CAN ORDINARY STUDENTS BE FAR BEHIND SO FAR CHOICE PROGRAMS THAT INCLUDE PRIVATE SCHOOLS HAVE BEEN IMPLEMENTED ONLY IN MILWAUKEE AND PUERTO RICO ARIZONA IS AN OPPORTUNITY FOR CHOICE SUPPORTERS TO BOUNCE BACK FROM THEIR DEFEAT LAST MONTH IN CALIFORNIA WITH VOUCHER PROGRAMS ALREADY IN PLACE FOR ONE CLASS OF ARIZONA STUDENTS REFORMERS THERE SIMPLY WANT TO EXTEND THE OPTION TO THE REST 9312300094 931230 BUSINESS BRIEF ASEA BROWN BOVERI INC MIDLAND PARTNERSHIP PLANT TO OBTAIN PARTS FROM UNIT ABB POWER GENERATION INC A UNIT OF ASEA BROWN BOVERI INC WILL SUPPLY A GASFIRED PLANT WITH PARTS FOR THE PLANT'S GAS TURBINES AS PART OF A 158 MILLION DEAL WITH MIDLAND COGENERATION VENTURE LIMITED PARTNERSHIP THE PLANT IS IN MIDLAND MICH THE PARTNERSHIP WHICH OWNS AND OPERATES THE PLANT IS COMPOSED OF PARTNERS THAT INCLUDE CMS MIDLAND INC A UNIT OF CMS ENERGY CORP AND DOW CHEMICAL CO SEPARATELY THE GROUP ANNOUNCED THAT AN ARBITRATION DEAL INVOLVING 309 MILLION WORTH OF MIDLAND SENIOR DEBT HAS BECOME FINAL BETWEEN CMS AND THE PARTNERSHIP 9312300093 931230 POLITICS & PEOPLE SOME WE'VE LOST THIS YEAR AND THEIR LEGACIES BY ALBERT R HUNT THE SUNDAY AFTERNOON FESTIVITY EARLIER THIS MONTH AT THE NATIONAL EDUCATION ASSOCIATION OFFERED A PANORAMA OF THE PAST TWO DECADES OF AMERICAN POLITICS IT CELEBRATED THE LIFE OF ALAN BARON WHO AT AGE 50 HAD PASSED AWAY FOLLOWING A LONG ILLNESS THERE WAS SAM BROWN LEADER OF THE ANTIVIETNAM WAR PROTESTS OF THE EARLY '70S SITTING 10 FEET FROM BOB NOVAK THE CONSERVATIVE COLUMNIST WHO STUCK GEORGE MCGOVERN WITH THE CANDIDATE OF AMNESTY ABORTION AND ACID MONIKER IN 1972 THERE WERE THE TWO MOST SUCCESSFUL POLITICAL DIRECT MAIL ENTREPRENEURS OF THIS GENERATION RICHARD VIGUERIE OF THE RIGHT AND ROGER CRAVER OF THE LEFT THERE WERE US SENATORS RANKING CLINTON ADMINISTRATION OFFICIALS CORPORATE CEOS LABOR UNION CHIEFTAINS AND AVERAGE FOLKS ALL COMING TO PAY HOMAGE TO A SELFSTYLED NERD A SIMPLE JEWISH KID FROM SIOUX CITY IOWA WHO HAD A BRILLIANT POLITICAL MIND MORE IMPORTANTLY HE WAS AS POLITICAL CONSULTANT BOB SHRUM SAID TRULY THE HAPPY WARRIOR OF AMERICAN POLITICS OVER THE PAST QUARTER CENTURY IN AN AGE OF TOO MUCH UNEARNED CYNICISM HE WAS A REMINDER OF THE FUN AND THE VALUE OF POLITICS AND POLITICIANS WHEN FIGURES OF SOME MOMENT DIE IT'S GOOD TO REFLECT NOT ONLY ON THEM BUT ALSO ON WHAT THEY SAY ABOUT US AND THE BODY POLITIC AT THE TOP OF ANY 1993 LIST WOULD BE THURGOOD MARSHALL THE SUPREME COURT JUSTICE AND GREAT CIVIL RIGHTS LAWYER WHOSE DEATH BROUGHT BACK TO ME MEMORIES OF CHILDHOOD SUMMERS IN A SMALL VIRGINIA TOWN ALMOST FOUR DECADES AGO NOT ONLY WERE THE SCHOOLS AND NEIGHBORHOODS SEGREGATED BUT ALL THE RESTROOMS AND DRINKING FOUNTAINS WERE LABELED WHITE OR COLORED NO ONE PLAYED A LARGER ROLE IN ERADICATING THAT ATROCITY THAN THURGOOD MARSHALL NO CHANGE HAS BETTER SERVED AMERICA JOHN CONNALLY DIED THIS YEAR TOO AND WHILE HE WAS CERTAINLY LESS VIRTUOUS I NEVER COVERED A MORE LARGERTHANLIFE CHARACTER ONCE ASKED IF CONGRESS COULD BE PERSUADED ON A PARTICULAR PROPOSAL HE JUTTED THAT FORMIDABLE JAW OUT AND DECLARED I CAN SELL IT ROUND OR I CAN SELL IT FLAT HE WAS A MAN WITH FLAWS BUT HE EMBODIED THAT CANDO SPIRIT THAT'S INGRAINED IN AMERICAN POLITICS TWO OF THE LEADING NIXONERA FIGURES PASSED ON THE FORMER PRESIDENT'S WIFE PAT AND HIS CHIEF OF STAFF HR HALDEMAN BOTH HAD REPUTATIONS AS ALOOF I BARELY KNEW EITHER ONE BUT DID KNOW THEIR DAUGHTERS I REMEMBER ANN HALDEMAN AS A YOUNG SENATE CLERK TALKING WITH LOVE AND AFFECTION ABOUT HER FATHER WHEN WATERGATE WAS STILL A VIVID AND UGLY MEMORY AND WHEN MY MOTHER WAS ILL IN A NURSING HOME OUTSIDE PHILADELPHIA SUDDENLY A STRANGER APPEARED AND WITH HER YOUNG CHILDREN VISITED MY MOM ALMOST WEEKLY THAT WAS JULIE NIXON EISENHOWER NO MATTER THEIR REPUTATIONS I'LL NEVER BELIEVE THAT ANYONE WHO PRODUCES KIDS LIKE THAT IS DISTANT OR ALOOF ALAN BARON WASN'T AS WELL KNOWN TO THE GENERAL PUBLIC THOUGH HE WAS FAMILIAR TO READERS OF THE JOURNAL BOTH AS AN OCCASIONAL CONTRIBUTOR TO THESE PAGES AND AS A REGULAR MEMBER OF THE PAPER'S PANEL OF POLITICAL EXPERTS BUT INSIDERS OF ALL POLITICAL STRIPES LOVED THIS ROUND LITTLE MAN WHO GENUINELY BELIEVED THAT POLITICS IS AN IMPORTANT AND NOBLE CALLING AS A PARTISAN DEMOCRAT ALAN BARON NEVER CAME CLOSE TO ELECTING HAROLD HUGHES OR EDMUND MUSKIE OR GEORGE MCGOVERN TO THE PRESIDENCY BUT WHEN HE WENT ON TO BECOME A COMMENTATOR AND ANALYST PUBLISHING WHAT WAS THEN THE MOST INFLUENTIAL POLITICAL NEWSLETTER IN THE COUNTRY AS WELL AS EDUCATING CORPORATE CHIEFTAINS ON AMERICAN POLITICS HE WAS IN A CLASS BY HIMSELF FOR YEARS I FREQUENTLY GOT LATENIGHT PHONE CALLS WHEN ALAN WOULD REVEAL ONE OF HIS MANY INSIGHTS DO YOU KNOW WHICH CITY VOTED THE MOST DEMOCRATIC IN PRESIDENTIAL ELECTIONS BETWEEN 1936 AND 1980 BEGAN ONE I DIDN'T CLEVELAND DID I KNOW WHICH RELIGIOUS GROUP VOTED THE MOST DEMOCRATIC IN THAT PERIOD JEWS RIGHT WHICH PROFESSION VOTED THE MOST DEMOCRATIC LABOR UNION PRESIDENTS AND DID YOU KNOW HE CONTINUED IN HIS HIGHPITCHED EXCITABLE STYLE THAT THERE'S ONLY ONE JEWISH LABOR UNION PRESIDENT FROM CLEVELAND OHIO TODAY JACKIE PRESSER AND HE'S REPUBLICAN ANY TIME JOURNALISTS FALL INTO OUR CUSTOMARY HABIT OF STEREOTYPING POLITICS WE SHOULD REMEMBER THIS STORY ALAN WAS A DEDICATED LIBERAL DEMOCRAT UNTIL THE DAY HE DIED AS A TEENAGER HE POSTPONED HIS BAR MITZVAH BECAUSE OF THE STEVENSON CAMPAIGN BUT THAT RARELY AFFECTED HIS EXTRAORDINARY JUDGMENT IN 1979 HE RAISED THE PREPOSTEROUS NOTION THAT THE REPUBLICANS MIGHT TAKE CONTROL OF THE SENATE THE FOLLOWING YEAR AND HE FORESAW THE WEAKNESS OF THE MONDALE CANDIDACY TWO YEARS BEFORE THE 1984 ELECTION ANY DEMOCRATIC PRESIDENTIAL CANDIDATE WHO CAN'T ANSWER THAT QUESTION AFFIRMATIVELY MR BARON CONCLUDED OUGHT TO LOOK FOR ANOTHER LINE OF WORK HE'S A SURE LOSER WHEN YOU INDICATE TO PEOPLE THAT THEY ARE SELFISH AND STUPID YOU LOSE TWO GROUPS OF VOTERS THOSE WHO ARE AND THOSE WHO AREN'T THE HUMOR OF AMERICAN POLITICS WAS A BARON STAPLE IN 1976 SOUTH DAKOTA REP LARRY PRESSLER WHO HAD HIS EYES ON A SENATE RUN IN TWO YEARS WON HIS HOUSE SEAT HANDILY BUT RAN TV ADS IN ANOTHER CITY HUNDREDS OF MILES FROM HIS DISTRICT THE BARON REPORT NOTED HIS EXPLANATION A LOT OF TRAVELING SALESMAN FROM MY DISTRICT WORK THERE AND WHEN THE CARTER ADMINISTRATION HOSTED A PRIVATE LUNCHEON FOR KEY JEWISH LEADERS THE BARON REPORT NOTED THAT THE PARTICIPANTS NEITHER LEARNED MUCH NOR ATE MUCH THE MENU WAS SHRIMP SALAD AND HAM SALAD BOTH BANNED UNDER JEWISH DIETARY LAWS ALAN VIEWED POLITICS IN VERY HUMAN TERMS AS SANDY BERGER DEPUTY NATIONAL SECURITY ADVISER SAID HE ALWAYS WAS CONNECTING WITH PEOPLE HE UNDERSTOOD EVERYDAY RELATIONS AS WELL AS POSSESSED A KEEN UNDERSTANDING OF POLITICAL HISTORY HE GOT ALL AS AS HIS GOOD FRIEND COLUMNIST MARK SHIELDS SAID BUT ALSO MORE THAN PASSED ORDINARY LIVING THIS ECLECTIC GROUP OF POLITICAL JUNKIES HUNG AROUND THE NEA THAT SUNDAY TO SWAP BARON STORIES AND TALK POLITICS WITH A SIZABLE ADMINISTRATION CONTINGENT A HOT TOPIC WAS THE PROSPECT OF A BATTLE BETWEEN MODERATES PERSONIFIED BY WHITE HOUSE COUNSELOR DAVID GERGEN AND LIBERALS PERSONIFIED BY BILL CLINTON'S OLD FRIEND HAROLD ICKES WHO'S ABOUT TO BE A DEPUTY WHITE HOUSE CHIEF OF STAFF AMID THIS MR GERGEN WALKED UP AND FOR THE FIRST TIME INTRODUCED HIMSELF TO MR ICKES ALAN BARON WOULD HAVE RELISHED THE MOMENT 9312300092 931230 ECONOMY HOME RESALES ROSE 29 TO A RECORD IN NOVEMBER AMID LOW INTEREST RATES BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL SALES OF PREVIOUSLY OWNED HOMES GREW 29 TO RECORD LEVELS IN NOVEMBER DRIVEN BY LOW INTEREST RATES AND RESURGING CONSUMER CONFIDENCE EXISTING SINGLEFAMILY HOME SALES ROCKETED TO A SEASONALLY ADJUSTED ANNUAL RATE OF 4210000 FROM A REVISED PACE OF 4090000 IN OCTOBER ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS SALES JUMPED 9 FROM A YEAR EARLIER AND PASSED THE PREVIOUS RECORD OF 4150000 SET IN NOVEMBER 1978 ALL REGIONS OF THE COUNTRY POSTED STRONG GAINS WITH ONLY RECESSIONRAVAGED SOUTHERN CALIFORNIA FAILING TO KEEP PACE WITH THE NATIONAL RECOVERY IN RESIDENTIAL REAL ESTATE ANALYSTS SAID THE STRONG SALES WERE EXPECTED GIVEN THE ROBUST ACTIVITY THIS YEAR SPURRED BY MORTGAGE RATES THAT ARE HOVERING AT A 20YEAR LOW WHAT SURPRISED ME IS THAT IT DIDN'T HAPPEN EARLIER SAID INGO WINZER PUBLISHER OF THE LOCAL MARKET MONITOR WHICH TRACKS HOUSING ACTIVITY A LOT OF PEOPLE FEEL MORE SECURE IN THEIR OWN FINANCIAL SITUATION AND ARE READY TO TAKE ON SOME NEW DEBT DAVID K DWYER AN ANALYST AT KIDDER PEABODY SAID HOME OWNERSHIP RATES HAVE BEEN RISING FOR FIVE STRAIGHT QUARTERS NOW THE HIGHEST SUSTAINED GAIN IN MORE THAN A DECADE AFFORDABILITY IS AT A VERY HIGH LEVEL HE SAID IN MANY AREAS OF THE COUNTRY YOU CAN BUY A HOME FOR THE SAME MONTHLY PAYMENTS THAT YOU CAN RENT AN APARTMENT THE AVERAGE RATE ON A 30YEAR CONVENTIONAL MORTGAGE DECLINED TO 724 YESTERDAY FROM 729 LAST WEEK ACCORDING TO A PRELIMINARY SURVEY OF LENDERS BY HSH ASSOCIATES INC A BUTLER NJ MORTGAGEPUBLISHING FIRM AFTER FALLING BELOW 7 EARLIER THIS YEAR RATES CLIMBED TO 740 IN NOVEMBER BEFORE THEIR RECENT SOFTENING JOHN A TUCCILLO CHIEF ECONOMIST AT THE NATIONAL ASSOCIATION OF REALTORS SAID A RECENT RISE IN INTEREST RATES PUSHED MORE BUYERS INTO THE MARKET NOW IS THE TIME TO GET INTO THE MARKET BEFORE RATES GET ANY HIGHER HE SAID THE RECORD OCCURRED BECAUSE OF THAT THE MIDWEST LED THE GROWTH IN HOME RESALES WITH AN 114 INCREASE FROM A YEAR EARLIER AND A 73 JUMP FROM OCTOBER SALES IN THE WEST GREW 73 FROM A YEAR EARLIER BUT DROPPED 43 FROM OCTOBER WHEN SALES HIT A FIVEYEAR PEAK ALTHOUGH MANY OF THE COUNTRY'S HOTTEST HOUSING MARKETS SUCH AS SALT LAKE CITY PHOENIX AND SPOKANE WASH ARE IN THE WEST THE REGION'S OVERALL PERFORMANCE HAS BEEN HELD BACK BY LACKLUSTER SALES IN THE LOS ANGELES AREA CALIFORNIA'S EXISTINGHOME SALES ROSE 27 FROM OCTOBER AND 6 FROM A YEAR EARLIER ACCORDING TO THE CALIFORNIA ASSOCIATION OF REALTORS THAT WAS THE SIXTH CONSECUTIVE MONTHLY INCREASE FOR THE STATE AND NOVEMBER'S ANNUAL SALES RATE OF 476770 SINGLEFAMILY HOMES REPRESENTED THE HIGHEST LEVEL OF ACTIVITY SINCE DECEMBER 1992 MEDIAN HOME PRICES HOWEVER SLID 47 FROM A YEAR EARLIER WHILE THEY HAVE BEEN RISING IN THE REST OF THE COUNTRY CALIFORNIA IS STILL A SLUGGISH MARKET BUT THEY PROBABLY HAVE BOTTOMED OUT MR TUCCILLO SAID SALES IN THE SOUTH GREW 93 FROM A YEAR EARLIER AND 41 FROM OCTOBER NORTHEAST SALES INCREASED 73 FROM A YEAR EARLIER AND 49 FROM OCTOBER LYLE GRAMLEY A CONSULTING ECONOMIST AT THE MORTGAGE BANKERS ASSOCIATION SAID THAT THE RUSH OF PEOPLE TAKING ADVANTAGE OF LOW RATES MAY SOMEWHAT OVERSTATE THE EXTENT OF THE RECOVERY BUT THAT STEADY EMPLOYMENT GAINS AND HISTORICALLY LOW INTEREST RATES WILL CONTINUE TO FUEL CONSUMER CONFIDENCE IT'S A COMBINATION THAT'S HARD TO BEAT HE SAID THE BASIC OUTLOOK IS QUITE FAVORABLE 9312300091 931230 LEISURE & ARTS TV A DOCTOR GONE BAD PC KIDNAPPING AND KODIAK BEARS BY DOROTHY RABINOWITZ JUDD HIRSCH HAS A THANKLESS ROLE TO PLAY AS THE GLUMLY SILENT VILLAIN OF THIS STORY FACTBASED OF A PSYCHIATRIST ACCUSED OF MOLESTING A PATIENT THE FILM OFFERS NARY A SPECULATION AND HAS NOTHING TO SAY ABOUT THIS PUTATIVELY CRIMINAL THERAPIST OTHER THAN THAT HE IS A FORMER PRESIDENT OF THE AMERICAN PSYCHIATRIC ASSOCIATION CHARGED WITH RAPING A WOMAN CLIENT HE'S DRUGGED WITH SODIUM AMYTAL JUDITH LIGHT BRINGS A COMPETENT STARCHINESS TO THE OUTRAGED PATIENTHEROINE AND SUBJECT OF THE FILM'S EXCLUSIVE FOCUS AN INTRINSICALLY FASCINATING STORY REDUCED TO A NODIMENSIONAL ONE AN 11YEAROLD HOMEALONE SHOOTS AND KILLS TWO ARMED AND DANGEROUS INTRUDERS AND LIVES TO SUFFER THE CONSEQUENCES THAT IS THE SUBJECT MATTER OF THIS FINELY ARTICULATED GILLIAN PRODUCTION STARRING A YOUNG BOY ANDREW STARNES UNDONE BY THE TRAUMA OF THE IRREVOCABLE EVEN AS HE IS HONORED AS THE TOWN HERO GERALD MCRANEY GIVES A PERSUASIVE MEASURED PERFORMANCE AS THE DEVOTED BUT STIFFNECKED FATHER ROUGHLY THE SAME IS TRUE OF KATE JACKSON'S PORTRAYAL OF THE MOTHER WHILE YOUNG MR STARNES GIVES A THOROUGHLY SMASHING PERFORMANCE INDEED MOST EVERYTHING ABOUT THIS POTENT FILM WHICH IS ABOUT NOTHING LESS THAN THE CLAIMS OF CONSCIENCE AND TERROR WORKS SUCH ARE THE JUST REWARDS THAT CAN COME TO PRODUCTION COMPANIES THAT KNOW THE DIFFERENCE BETWEEN A REAL SUBJECT AND A FASHIONABLE ONE HERE ARE FIVE CASES OF POLITICAL CORRECTNESS IN ACTION ALONG WITH A POLL RESULT INDICATING THAT MOST AMERICANS BELIEVE THAT POLITICAL CORRECTNESS IS A BAD THING THE FIRST AND BEST OF THE STORIES TELLS ABOUT A VASSAR STUDENT CHARGED WITH MAKING ANONYMOUS CRANK CALLS TO HOMOSEXUALS THE VASSAR ADMINISTRATION EVIDENTLY DETERMINED TO FIND THE ACCUSED GUILTY DESPITE LACK OF EVIDENCE DECREES THAT THIS SON OF TWO NOWVERYANGRY '60'S LIBERAL ACTIVISTS MUST ATONE BY ATTENDING POLITICAL REEDUCATION OR DIVERSITY SEMINARS IN ITS RENDERING OF THE TWISTED NOTIONS OF JUSTICE HELD BY COLLEGE ADMINISTRATORS EAGER TO SHOW THEIR DEVOTION TO THE NEW ORTHODOXY THE REPORT BY ERIN MORIARTY CAPTURES PC EXACTLY AS IT EXISTS ON THE NATION'S CAMPUSES TODAY COMEDIAN JACKIE MASON'S LESS ENLIGHTENING CONFRONTATIONS WITH CENSORSHIP ARE ON VIEW HERE TOO ALONG WITH RELATED RAPSTAR TRIVIA HANG ON THOUGH FOR DETAILS OF WHAT BEFELL WASHINGTON POST COLUMNIST RICHARD COHEN FOR EXPRESSING A POLITICALLY DELICATE BUT INCONTESTABLE REALITY A DALLAS WOMAN'S DEATH FROM ARSENIC POISONING PUZZLES INVESTIGATORS WHO SOON ZERO IN ON THE KINDLY HUSBAND RICHARD THOMAS AS THE CHIEF SUSPECT TRASHY MOOD MUSIC ASIDE THIS FACTBASED COURTROOMDETECTIVE DRAMA DOES FAIRLY WELL IN THE SUSPENSE DEPARTMENT A MOVIE THAT CAN KEEP ONE GUESSING AS TO WHO THE KILLER IS PAST THE FIRST EIGHT MINUTES IS BY CURRENT STANDARDS NOTHING TO SNEEZE AT THE GUESSING HERE GOES ON MUCH LONGER THAN THAT SO CREDIT THIS FILM WITH ITS SURPRISES AND LOTS OF NICE TECHNICAL DETAIL A YOUNG WOMAN JUSTINE BATEMAN IS ABDUCTED DURING A CAMPING TRIP IN THE WOODS BY A KILLER AND HIS MARGINALLY LESS DEPRAVED GIRLFRIEND THIS MURKY DRAMA ALSO FACTBASED CLANKS ALONG PILING TERRORS ON TERRORS ALL SOMEHOW MENACEFREE THIS MAY HAVE A LITTLE SOMETHING TO DO WITH MS BATEMAN WHO WHATEVER HORRORS THREATEN RESEMBLES A SULKY TEENQUEEN FORBIDDEN TO GO TO THE MALL THIS NATIONAL GEOGRAPHIC SPECIAL ON THE KODIAK BROWN BEAR LARGEST CARNIVORE IN THE WORLD PROVIDES REMARKABLE CLOSEUPS OF THE FABULOUS CREATURE AT WORK AND PLAY THE BEAR GOES ABOUT GETTING AND SPENDING PICKING OFF SALMON AND VARIOUS COMPETITORS AND PRODUCING YOUNG AND WHAT YOUNG WE LEARN FOR INSTANCE THAT THESE BEARS WHOSE MALES CAN GROW UP TO WEIGH 1500 POUNDS AND STAND 10 FEET TALL GENERALLY WEIGH NO MORE THAN A POUND AT BIRTH OCCASIONALLY SAD ALWAYS ENGROSSING BEAUTIFULLY PHOTOGRAPHED DON'T MISS THE PARTY OF BEARS CARRION LOVERS MAKING MERRY OVER THE WASHED UP CARCASS OF A WHALE 9312300090 931230 ECONOMY NOVEMBER CONSTRUCTION INDEX FELL 1 DESPITE STRENGTH IN HOUSING MARKET BY JACQUELINE SIMMONS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE VALUE OF CONSTRUCTION CONTRACTS IN NOVEMBER SLIPPED 1 AS A STRONGER HOUSING MARKET WAS OFFSET BY WEAKNESS IN CONSTRUCTION OTHER THAN RESIDENCES AND BUILDINGS AN FW DODGE SURVEY REPORTED THE DODGE INDEX OF CONSTRUCTION CONTRACTS WHICH USES 1987 AS BASE YEAR OF 100 SLID TO 105 ON A SEASONALLY ADJUSTED BASIS DOWN FROM OCTOBER'S REVISED READING OF 106 WHICH WAS THE HIGHEST SO FAR IN 1993 THE STRONGER PACE OF THE RECOVERY THAT BEGAN IN THE MIDDLE OF THIS YEAR IS STILL UNDER WAY SAID ROBERT A MURRAY VICE PRESIDENT OF ECONOMIC AFFAIRS AND CHIEF ECONOMIST FOR FW DODGE THE FORECASTING UNIT OF MCGRAWHILL INC SINGLEFAMILY HOUSING IS GOING FULL THROTTLE AND NONRESIDENTIAL BUILDING HAS AT LEAST STABILIZED EVEN WITH THE OCCASIONAL STEP BACKWARD LIKE NOVEMBER HE SAID RESIDENTIAL CONSTRUCTION ROSE 6 IN NOVEMBER WITH SINGLEFAMILY HOUSING PROVIDING THE MAIN THRUST SINGLEFAMILY'S ROBUST PERFORMANCE THIS FALL HAS REESTABLISHED ITS ROLE AS THE LEADING EDGE OF THE BUILDING INDUSTRY UPTURN MR MURRAY NOTED HOWEVER THE MULTIFAMILY SIDE INCREASED A SLIGHT 1 IN NOVEMBER NONRESIDENTIAL CONSTRUCTION WHICH INCLUDES MANUFACTURING AND INSTITUTIONAL FACILITIES RETREATED 7 IN NOVEMBER AS MANUFACTURING CONSTRUCTION SLOWED TO A PACE MORE CONSISTENT WITH LEVELS PREVIOUSLY SHOWN IN 1993 WEAKNESSES WERE PARTICULARLY NOTICEABLE IN DETENTION FACILITIES AND TRANSPORTATION TERMINALS STORES SHOPPING CENTERS AND OFFICE BUILDINGS REBOUNDED FROM OCTOBER'S LACKLUSTER PERFORMANCE THE REPORT SAID OFFICE CONTRACT VALUE OVER THE FIRST 11 MONTHS OF 1993 IS HOLDING ON TO A 3 LEAD OVER THE SAME PERIOD A YEAR AGO SIGNIFYING THAT THE LONG DECLINE FOR THIS DEVASTATED SECTOR HAS PROBABLY RUN ITS COURSE NONBUILDING CONSTRUCTION SUCH AS STREETS AND HIGHWAYS FELL 7 DUE TO A SHARP DOWNTURN IN THE UTILITY SEGMENT PUBLICWORKS CONSTRUCTION ONE OF THE STRONGER ELEMENTS OF THE INDUSTRY'S RECOVERY IN 1993 EDGED UP 2 WITH BRIDGE SEWER AND WATERSUPPLY SECTORS EXPANDING ON AN UNADJUSTED BASIS TOTAL CONSTRUCTION CONTRACT VALUE IN THE JANUARYNOVEMBER PERIOD ADVANCED 5 FROM THE 1992 PERIOD MOST OF 1993'S GROWTH WAS IN THE SOUTHCENTRAL REGION WHICH INCREASED 11 AND THE SOUTH ATLANTIC WHICH GREW 8 THE MIDWEST AND WEST GREW AT A SLOWER PACE EACH POSTING A 3 RISE FROM A YEAR EARLIER THE NORTHEAST HOWEVER SLUMPED 2 9312300089 931230 COMMODITIES GOLD FUTURES PRICES JUMP AS TRADERS WORRY ABOUT POTENTIAL FAILURE OF LARGE SPANISH BANK BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL GOLD FUTURES PRICES LEAPED HIGHER ON CONCERNS ABOUT THE POTENTIAL FAILURE OF SPAIN'S FOURTHLARGEST BANK AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS UP 330 AN OUNCE TO SETTLE AT 39180 AN OUNCE WHILE THE ACTIVELY TRADED MARCH SILVER FUTURES CONTRACT ROSE 33 CENTS TO 5145 AN OUNCE IT WAS AN IMPRESSIVE SESSION SAID BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER INC IT WILL BE INTERESTING TO SEE WHETHER IT'S THE START OF SOMETHING OR JUST A ONEDAY RALLY IN EARLY TRADING YESTERDAY GOLD PRICES DECLINED FOR A NUMBER OF REASONS THE EXPIRATION OF EUROPEAN OVERTHECOUNTER OPTIONS CONTRACTS PUSHED PRICES LOWER ON BOTH THE LONDON AND NEW YORK GOLD MARKETS THE STRENGTH OF THE US DOLLAR AGAINST OTHER CURRENCIES ALSO PULLED GOLD PRICES DOWN AT ABOUT 10 AM EST HOWEVER GOLD BEGAN CHARGING HIGHER ENERGIZED IN PART BY THE STRENGTH OF COPPER AND SILVER PRICES THE RALLY INTENSIFIED AS CONCERNS MOUNTED ABOUT THE TROUBLES OF BANCO ESPANOL DE CREDITO SPAIN'S FOURTHLARGEST BANK WHICH ALSO IS KNOWN AS BANESTO NEWS REPORTS SAID THE CENTRAL BANK OF SPAIN HAD USED EMERGENCY POWERS TO DISMISS BANESTO'S BOARD AND CHAIRMAN A FAILURE OF BANESTO WOULD HAVE FARREACHING CONSEQUENCES BECAUSE OF ITS MANY HOLDINGS IN EUROPE AND ELSEWHERE AT TIMES OF SUCH UNCERTAINTY GOLD'S PRICE TENDS TO RISE AS INVESTORS POUR MONEY INTO HARD ASSETS SUCH AS GOLD THAT THEY THINK WILL HOLD VALUE MANY DAY TRADERS THE LOCAL SPECULATORS WHO MAKE THE MARKET AT THE COMMODITY EXCHANGE HAD BEEN HOLDING SHORT POSITIONS OR WAGERS THAT THE PRICE OF GOLD WOULD DECLINE AS THE MARKET MOVED HIGHER THEY LIQUIDATED THESE POSITIONS INTENSIFYING THE RALLY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY THAT EXERT A GREAT DEAL OF INFLUENCE OVER COMMODITY PRICES ALSO SCRAMBLED TO LIQUIDATE SHORT POSITIONS ANALYSTS SAID MOREOVER SMALL SPECULATORS FROM OUTSIDE THE EXCHANGE USED GOLD FUTURES CONTRACTS TO OPEN A NUMBER OF NEW LONG POSITIONS WHICH ARE WAGERS THAT GOLD PRICES WILL RISE THE EFFECT OF ALL THIS TRADING ACTIVITY ON FUTURES PRICES WAS INTENSIFIED BECAUSE MANY USERS OF PRECIOUSMETALS MARKETS AREN'T PRESENT DURING THE WEEK BETWEEN THE CHRISTMAS AND NEW YEAR'S HOLIDAYS WITH TRADING VOLUME THIN THE MARKET IS MORE PRONE TO SHARP AND SUDDEN MOVEMENTS IN OTHER COMMODITY MARKETS YESTERDAY ENERGY CRUDEOIL AND PETROLEUMPRODUCT PRICES ROSE IN ANTICIPATION OF OIL INVENTORY DATA TRADERS SAID PRODUCTS ALSO ROSE STRONGLY BECAUSE OF MARKET RUMORS OF HEAVY BUYING ON THE GULF COAST BY LARGE OIL COMPANIES MARKET PARTICIPANTS WERE EXPECTING THE WEEKLY REPORT FROM THE AMERICAN PETROLEUM INSTITUTE TO SHOW A DROP IN REFINERY UTILIZATION FOR THE WEEK ENDED DEC 24 AFTER TRADING SETTLED ON THE NEW YORK MERCANTILE EXCHANGE THE API REPORTED THAT US REFINERIES OPERATED AT 904 OF CAPACITY IN THE LATEST WEEK DOWN FROM 917 THE PRIOR WEEK ON THE MERC JANUARY HEATING OIL ROSE 122 CENTS A GALLON TO 4482 CENTS GASOLINE FOR JANUARY DELIVERY ADVANCED 104 CENTS TO 3918 CENTS A GALLON MEANWHILE CRUDE FOR FEBRUARY DELIVERY SETTLED AT 1444 A BARREL UP 33 CENTS COFFEE COFFEE FUTURES PRICES TUMBLED IN A MARKET THAT ANALYSTS SAID WAS ERRATIC BECAUSE OF THIN PREHOLIDAY TRADING VOLUME AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE COFFEE FOR MARCH DELIVERY WAS DOWN 180 CENTS TO 7490 CENTS A POUND THE DECLINE CAME DESPITE THE FACT THAT BRAZIL YESTERDAY HELD ITS 11TH COFFEE AUCTION AS PART OF AN EXPORTLIMITING AGREEMENT AND APPEARS DETERMINED TO MAKE THE AGREEMENT WITH AFRICAN COFFEE PRODUCERS AND OTHER LATIN AMERICAN PRODUCERS WORK SAID JUDITH GANES SENIOR ANALYST FOR MERRILL LYNCH IF THE RESULTS OF YESTERDAY'S AUCTION ARE ENCOURAGING THE MARKET MAY REBOUND TODAY MS GANES SAID BRAZIL'S PARTICIPATION IN THE EXPORTLIMITING PLAN IS SEEN AS CRUCIAL TO THE PROGRAM'S SUCCESS BECAUSE BRAZIL IS THE WORLD'S BIGGEST COFFEE PRODUCER 9312300088 931230 HEDGE FUND KINGS PROFIT HANDSOMELY RACKING UP A 3YEAR WINNING STREAK BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL IN THE HOUR IT TAKES OTHER PEOPLE TO BROWSE THROUGH THE MORNING NEWSPAPERS GEORGE SOROS'S ENTERPRISE IS EARNING ABOUT 170000 OR 5 1/2 TIMES THE AVERAGE ANNUAL INCOME OF US HOUSEHOLDS IT'S A BANGUP YEAR FOR SOROS FUND MANAGEMENT AND THE OTHER BIG INVESTMENT POWERHOUSES KNOWN AS HEDGE FUNDS SEVERAL ARE FINISHING THE YEAR WITH INVESTMENT GAINS EXCEEDING 70 BEFORE FEES BY TOMORROW WHEN MR SOROS CLOSES THE BOOKS ON HIS BIGGEST YEAR EVER HIS CLOSELY HELD BUSINESS WILL HAVE REAPED ROUGHLY 149 BILLION FOR THE YEAR THAT INCLUDES ABOUT 612 MILLION FROM THE FIRM'S 15 CUT OF INVESTMENT GAINS 79 MILLION FROM AN ANNUAL MANAGEMENT FEE AND 800 MILLION FROM INVESTING THE BUSINESS'S OWN CAPITAL EAT YOUR HEART OUT MICHAEL MILKEN ONCE THE FORMER JUNKBOND KING STUNNED INVESTORS WITH HIS 1987 COMPENSATION OF 550 MILLION FROM THE LATE DREXEL BURNHAM LAMBERT INC BUT A NEW ROYALTY IS SWEEPING ONTO WALL STREET'S CENTER STAGE THE HANDFUL OF MONEY MANAGERS WHO RUN THE NATION'S BIGGEST HEDGE FUNDS THANKS TO AN ASTOUNDING THREEYEAR STREAK A HALFDOZEN HEDGE FUNDS RIVAL THE TRADING PROWESS OF WALL STREET'S MOST NIMBLE FIRMS HEDGE FUNDS ARE PRIVATE PARTNERSHIPS THAT ADOPT A HIGHRISK INVESTMENT STRATEGY IN PURSUIT OF BIG RETURNS FOR A LIMITED NUMBER OF INVESTORS OFTEN BASED ABROAD THE WORD HEDGE DOESN'T MEAN THE FUNDS ARE CONSERVATIVE IT ALLUDES TO A STRATEGY OF BETTING ON SOME INVESTMENTS TO GO UP AND OTHERS TO GO DOWN A TACTIC THAT AT TIMES CAN HELP HEDGE AGAINST BROAD MARKET SWINGS THE SOROS OPERATION LEADS THE PACK WITH ABOUT 11 BILLION UNDER MANAGEMENT AFTER RECENT DISTRIBUTIONS TO INVESTORS UP FROM AROUND 7 BILLION AS THE YEAR BEGAN ACCORDING TO SOROS WATCHERS THE LATEST YEAR'S GAIN FOR SOROSMANAGED FUNDS AVERAGED 73 BEFORE SUBTRACTING FEES TIGER MANAGEMENT CORP WITH JULIAN ROBERTSON AT THE HELM NOW RUNS ABOUT 7 BILLION THANKS TO GROSS RETURNS OF 74 THIS YEAR AND A BIT OF NEW MONEY FOUR YEARS AGO THE VETERAN STOCKPICKER RAN LESS THAN 800 MILLION MICHAEL STEINHARDT MANAGES JUST UNDER 5 BILLION TODAY THESE SUPERHEDGE FUNDS HAVE BECOME THE TITANS OF HIGH FINANCE AS A RESULT THE MEN WHO RUN THEM RANK AMONG THE MOST POWERFUL BESTCOMPENSATED EXECUTIVES IN THE COUNTRY MR ROBERTSON'S TIGER MANAGEMENT GROSSED ABOUT 640 MILLION IN TIGER'S SHARE OF INVESTMENT RETURNS PLUS MANAGEMENT FEES BASED ON RETURN FIGURES THAT THE FUND SHARES WITH ITS INVESTORS SINCE MOST INVESTORS REINVEST THEIR GAINS SUCH BONANZAS GET PILED ONTO THE ALREADYSUBSTANTIAL SUMS THE FUNDS WIELD MOST OF THE GIANT HEDGE FUNDS ARE CLOSED TO NEW INVESTORS STUNNING RETURNS HELPED PUSH TWO NEWCOMERS INTO THE LIMELIGHT OMEGA ADVISERS FOUNDED A MERE TWO YEARS AGO BY LEON COOPERMAN THE FORMER GOLDMAN SACHS RESEARCH WHIZ NOW MANAGES ABOUT 3 BILLION AS A RESULT OF 73 GROSS RETURNS THIS YEAR MARK STROME IN SANTA MONICA CALIF STARTED THE YEAR WITH ABOUT 200 MILLION HIS 140 RETURNS ATTRACTED SO MUCH NEW MONEY THAT HE ENDS THE YEAR JUST SHY OF 1 BILLION NOT ONLY HAS SIZE NOT HAMPERED RETURNS AS USUALLY HAPPENS BUT SOME INVESTORS EVEN ARGUE THAT THE BIGGER THE FUNDS HAVE GROWN THE BETTER THEY HAVE BEEN ABLE TO PERFORM THERE HAVE BEEN INVESTMENT OPPORTUNITIES WHERE SIZE HAS HELPED SAYS ANTOINE BERNHEIM IN NEW YORK WHO MONITORS HEDGEFUND PERFORMANCE AS PUBLISHER OF THE US OFFSHORE FUNDS DIRECTORY ONCE HEDGE FUNDS STUCK TO STOCKS SIMULTANEOUSLY BUYING AND SELLING SIMILAR SECURITIES TO LOCK IN A GAIN NO MORE AS THE FUNDS HAVE GROWN LARGER THEY HAVE STARTED TO CONVERGE ON THE SAME LARGESCALE INVESTMENTS KNOWN AS MACRO PLAYS INCREASINGLY SIZE FORCES THE FUNDS TO GAMBLE ON THE DIRECTION OF CURRENCIES AND INTEREST RATES BETS THAT LEND THEMSELVES NICELY TO THE KIND OF HIGHODDS BETS HEDGEFUND MANAGERS RELISH ONE MANAGER SAYS HE CONTROLLED 1 BILLION OF JAPANESE BONDS BY PAYING 14 MILLION IN OPTION PREMIUMS LESS THAN 1 OF HIS PORTFOLIO'S FUNDS ANOTHER POPULAR PLAY OF THE PAST YEAR A CUSTOMTAILORED OPTION ON DECLINING FRENCH INTEREST RATES GAVE SOME MANAGERS AS MUCH AS A 20TO1 PAYOFF MR ROBERTSON A STOCK PICKER BY TRAINING GENERATED ABOUT 40 OF HIS RETURNS THIS YEAR FROM SOPHISTICATED CURRENCY AND INTERESTRATE BETS INCLUDING A TWOYEAROLD WAGER ON DECLINING SHORTTERM JAPANESE RATES SIMILARLY MR STEINHARDT ALSO A RENOWNED STOCKPICKER REAPED VIRTUALLY NONE OF THIS YEAR'S INVESTMENT GAINS FROM THE US STOCK MARKET INVESTORS SAY HE MADE IMPRESSIVE RETURNS OF ABOUT 54 BEFORE SUBTRACTING FEES FROM A COMBINATION OF FUTURES AND FOREIGN BONDS THE FUNDS OFTEN HAVE BETTER ACCESS TO INFORMATION TOO SAYS MR BERNHEIM FOR EXAMPLE FORMER BRITISH PRIME MINISTER MARGARET THATCHER TOOK A BREAK FROM PROMOTING HER BOOK THIS YEAR TO JOIN SEVERAL HEDGEFUND MANAGERS INCLUDING MR ROBERTSON AT AN INTIMATE LUNCH LIKEWISE CONFERENCES MR SOROS HOSTS FOR HIS NOTFORPROFIT FOUNDATIONS IN EUROPE ARE ATTENDED BY CABINET MINISTERS REPRESENTING COUNTRIES WHERE HE INVESTS ACCORDING TO A SPOKEWOMAN FOR THE NOTFORPROFIT FOUNDATION NEITHER MR SOROS NOR MR ROBERTSON WOULD COMMENT FOR THIS ARTICLE THIS IS A NEW TYPE OF MONEYMANAGEMENT BUSINESS SAYS RICHARD ELDEN PRESIDENT OF GROSVENOR CAPITAL MANAGEMENT A CHICAGOBASED MONEY MANAGER THAT INVESTS THROUGH HEDGE FUNDS INCREASINGLY HEDGE FUNDS ARE STAFFING UP IN AREAS WHERE THE FOUNDER HASN'T ANY EXPERTISE INCENTIVEBASED COMPENSATION FOR THESE JUNIOR STAFF MEMBERS CAN EAT UP A BIG SLICE OF THE FOUNDING MANAGER'S TAKE 9312300087 931230 LEISURE & ARTS FILM SIR TONY TRIUMPHS FOR SECOND TIME THIS YEAR BY JULIE SALAMON ANTHONY HOPKINS IS CARRYING OFF AN ACTING TOUR DE FORCE RIGHT NOW ONE THAT REQUIRES THE PURCHASE OF TWO MOVIE TICKETS TO SEE IN ITS STUNNING TOTALITY IN THE REMAINS OF THE DAY HE PLAYS A MIDDLEAGED REPRESSED MAN A BUTLER WHO FALLS IN LOVE WITH A YOUNGER WOMAN BUT NEVER OVERCOMES HIS FUNDAMENTAL REPRESSION IN SHADOWLANDS HE PLAYS ANOTHER REPRESSED MIDDLEAGED MAN A WRITER AND TEACHER WHO FALLS IN LOVE WITH A YOUNGER WOMAN BUT IN THIS SECOND SCENARIO HE TAKES THE PLUNGE AND SUFFERS THE CONSEQUENCES BUT ENJOYS THEM AS WELL SHADOWLANDS IS ABOUT THE ROMANCE AND MARRIAGE BETWEEN THE FAMOUS OXONIAN SCHOLAR AND CHILDREN'S BOOK AUTHOR CS LEWIS AND JOY GRESHAM AN AMERICAN POET AS ELOQUENTLY IMAGINED BY WILLIAM NICHOLSON WHO ADAPTED THE MOVIE'S SCRIPT FROM HIS PLAY THEIR RELATIONSHIP WAS AN IDEALIZED ROMANTIC FANTASY MORE SPIRITUAL THAN SEXUAL A CELEBRATED PUBLIC LECTURER ON MORALITY AND ETHICS AS WELL AS A POPULAR PROFESSOR AT OXFORD LEWIS WOULD URGE HIS AUDIENCES TO TAKE RISKS TO BE WILLING TO SUFFER PAIN IS GOD'S MEGAPHONE TO ROUSE A DEAF WORLD HE HOWEVER DILIGENTLY AVOIDED PAIN BY KEEPING HIS RELATIONSHIPS AT A SAFE DISTANCE HE LIVED IN A COMFORTABLE COCOON RULED BY PREDICTABLE ROUTINE AND PERSONALITIES HE SHARED A HOME WITH HIS BROTHER ATE LUNCH WITH HIS FELLOW TEACHERS IT IS THE MOVIE'S SEDUCTIVE PREMISE THAT MISS GRESHAM FORCED CS LEWIS TO FOLLOW HIS OWN ADVICE SOMETHING HE HAD NOT BEEN DOING FOR THE HALFCENTURY HE'D LIVED BEFORE THEY MET MISS GRESHAM DIED OF CANCER AT AN EARLY AGE IN MR NICHOLSON'S DRAMA HER SICKNESS BECOMES THE CATALYST FOR MR LEWIS'S EMOTIONAL TRANSFORMATION WHO KNOWS IF THIS IS WHAT HAPPENED IN REAL LIFE BUT ON FILM IT HAS TREMENDOUS IMPACT ESPECIALLY IF YOU ARE SUSCEPTIBLE TO THIS KIND OF LITERATE TEARJERKER I AM MISS GRESHAM SEPARATED FROM HER HUSBAND PURSUED LEWIS WHILE SHE WAS TRAVELING THROUGH ENGLAND WITH HER SON IN THE 1950S IN THE MOVIE SHE REFUSES TO ACCEPT THE POLITE RETICENT MAN SHE MEETS AS THE CS LEWIS WHOSE BOOKS SHE'D READ AND LOVED SHE WANTS HIM TO LIVE UP TO HIS OWN IMAGINATION AS HE PRESENTS IT IN HIS BOOKS HE LIKES HER VERY MUCH THIS BRASH AMERICAN WHO WOULDN'T IF SHE WERE ANYTHING LIKE THE EDGY FUNNY WOMAN DEBRA WINGER HAS MADE HER INTO MS WINGER TURNS IN ONE OF THE TRUEST PERFORMANCES SHE'S GIVEN IN YEARS THE GRESHAM CHARACTER'S INTELLIGENCE AS WELL AS HER UNCERTAINTY SUITS HER IT ALSO SUITS THE DIRECTOR RICHARD ATTENBOROUGH WHO IS PROBABLY BESTKNOWN THESE DAYS AS DR HAMMOND THE OVERZEALOUS THEME PARK DEVELOPER IN JURASSIC PARK AS A MOVIE DIRECTOR OVER THE YEARS HE HAS OFTEN BEEN DRAWN TO SUBJECTS THAT HAVEN'T BENEFITTED FROM HIS STRAIGHTFORWARD STYLE I'M THINKING OF A CHORUS LINE CRY FREEDOM CHAPLIN MR ATTENBOROUGH CAPTURES THE ATMOSPHERE OF CS LEWIS'S OXFORD PARTICULARLY WELL BOTH THE SAFETY AND THE GRANDEUR OF IT YET HE ALSO SHOWS A DEEP APPRECIATION OF MR NICHOLSON'S ELEGANT LANGUAGE AND THE MASTERFUL WAY THE ACTORS SPEAK IT ON OCTOBER 5 1974 BOMBS EXPLODED IN TWO PUBS IN THE LONDON SUBURB OF GUILDFORD CAUSING FIVE DEATHS AND MANY INJURIES OTHER BOMBINGS FOLLOWED PART OF THE WAR THAT HAD BEEN GOING ON BETWEEN THE IRA AND THE BRITISH GOVERNMENT SINCE THE BRITISH OCCUPATION OF NORTHERN IRELAND IN 1969 FOLLOWING THE GUILDFORD BOMBINGS THE BRITISH PASSED THE PREVENTION OF TERRORISM ACT WHICH ALLOWED THE AUTHORITIES TO DETAIN SUSPECTS FOR SEVEN DAYS WITHOUT BENEFIT OF COUNSEL ONE OF THE LIVING CASUALTIES OF ALL THIS WAS GERRY CONLON A YOUNG IRISH MAN WHO IN 1974 WAS SPENDING HIS TIME REBELLING AGAINST HIS PARENTS WITH PETTY THIEVERY AND OTHER MISCHIEF BAD LUCK PUT HIM IN THE WRONG PLACE AT THE WRONG TIME LONDON AT THE TIME OF THE BOMBINGS AND HE WAS ARRESTED AND CHARGED WITH TERRORISM AND MURDER HE AND THREE FRIENDS AND NUMEROUS MEMBERS OF HIS FAMILY INCLUDING HIS FATHER WERE CONVICTED AS TERRORISTS AND SENT TO PRISON EVENTUALLY YEARS AFTER THE REAL BOMBERS CONFESSED TO THE CRIME AND WERE ARRESTED AND JAILED FOR IT THE GUILDFORD FOUR AND THEIR ACCESSORIES WERE FREED AT THE SAME TIME A GOVERNMENT CONSPIRACY TO HANG THE CHARGES ON THEM WAS UNCOVERED GERRY CONLON TOLD THIS STORY IN A BOOK CALLED PROVED INNOCENT WHICH SERVED AS THE BASIS FOR A HARROWING FASCINATING NEW FILM CALLED IN THE NAME OF THE FATHER THE DIRECTOR JIM SHERIDAN AND HIS COSCREENWRITER TERRY GEORGE TELL THE TALE AFFECTINGLY THE FILM IS STAGED AS A NARRATION AS GERRY LAYS OUT THE STORY TO THE LAWYER WHO BELIEVES HE HAS BEEN WRONGED SHE IS PLAYED WITH INTELLIGENCE AND PASSION BY EMMA THOMPSON BUT THE FILM'S POWER LIES IN ITS EXPLORATION OF THE RELATIONSHIP BETWEEN GERRY CONLON AND HIS FATHER GIUSEPPE HE WASN'T ITALIAN HIS MOTHER JUST LIKED THE NAME DANIEL DAYLEWIS GIVES GERRY'S CONFUSION AND POLITICAL AWAKENING AND DISILLUSIONMENT GRITTY AUTHENTICITY YET THE PICTURE'S HEART LIES WITH GIUSEPPE THE SIMPLE MORAL MAN GIVEN THE STRENGTH OF SAINTS BY THE ENGLISH ACTOR PETE POSTLEPHWAITE THIS SEEMS TO BE THE SEASON FOR REALLIFE STORIES OLIVER STONE WEIGHS IN WITH HEAVEN AND EARTH ABOUT A VIETNAMESE WOMAN NAMED LE LY WHO ENDURES ONE ATROCITY AFTER ANOTHER HER VILLAGE IS DESTROYED BY THE FRENCH SHE IS RAPED BY THE VIET CONG HER VILLAGE IS DESTROYED AGAIN BY THE AMERICANS SHE HAS AN ILLEGITIMATE CHILD BY A RICH SOUTH VIETNAMESE MAN AND IS FORCED INTO PROSTITUTION WHEN SHE FINALLY THINKS SHE'S BEEN SAVED BY A KIND AMERICAN SOLDIER WHO MARRIES HER SHE DISCOVERS THAT HER SAVIOR IS DEEPLY TROUBLED ALMOST PSYCHOPATHIC DESPITE ALL THIS SHE BECOMES A SUCCESSFUL BUSINESSWOMAN IN AMERICA AND RAISES THREE SONS CERTAINLY THIS IS AN EPIC STORY AND POSSIBLY AN INSPIRATIONAL ONE BUT MR STONE IN HIS BLUNT WAY USES LE LY'S TRAGEDIES AS WEAPONS TO BEAT HIS AUDIENCE INTO SUBMISSION HOWEVER HIS ANTIAMERICAN POLEMICS DON'T WORK WELL SINCE LE LY'S BRUTALIZERS ARE DRAWN FROM MANY NATIONS MANY POLITICAL BELIEFS THE SORRY WAYS THAT CULTURE AND POLITICS COMBINED TO AFFECT LE LY COULD HAVE BEEN FASCINATING HIEP THI LE THE YOUNG WOMAN WHO PLAYS HER IS WONDERFULLY EXPRESSIVE OR MIGHT HAVE BEEN IF MR STONE WOULD HAVE ONLY GIVEN HER A CHANCE VIDEO TIP JIM SHERIDAN AND DANIEL DAYLEWIS TEAMED UP BEFORE TO MAKE MY LEFT FOOT THE STORY OF THE DUBLIN PAINTER AND WRITER CHRISTY BROWN WHO HAD CEREBRAL PALSY MR DAYLEWIS IS EXTRAORDINARY AS A BRILLIANT SEXY MAN TRAPPED INSIDE HIMSELF AND FURIOUS ABOUT IT 9312300086 931230 LETTERS TO THE EDITOR ACLU ISN'T SCROOGE I CAN'T FIGURE OUT WHY YOU CAN'T FIGURE IT OUT THE ACLU DOES NOT ASSAULT THE SPIRIT OF CHRISTMAS ASIDES DEC 14 IN FACT IT WORKS TO PROTECT THE FREE EXPRESSION OF THE CHRISTMAS SPIRIT AND ALL OTHER SPIRITS BY ASSAULTING GOVERNMENT ENDORSEMENT FORTUNATELY THE COURTS HAVE FIGURED IT OUT AND USUALLY AGREE WITH THE ACLU IF YOU MUST BLAST SOMEBODY AS A SCROOGE BLAST THE COURTS THE ACLU RAISES THE ISSUE BUT THE COURTS DECIDE IT 9312300085 931230 DISNEY'S EISNER GIVES D' GRADE TO EURO DISNEY BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF WALT DISNEY CO CHAIRMAN MICHAEL EISNER CALLED EURO DISNEY SCA'S FINANCIAL PERFORMANCE DREADFUL AND SAID THE THEME PARK OUTSIDE PARIS WAS BARELY A D ON THE US COMPANY'S REPORT CARD IN THE EXECUTIVE'S VIEW THE REST OF THE REPORT CARD TO SHAREHOLDERS IS FILLED WITH A'S AND A PLUSES AND HE SAID IF EURO DISNEY'S PROBLEMS COULD BE SOLVED THE COMPANY WOULD RETURN TO A 20 GROWTH RATE IN 1994 DISNEY TRADITIONALLY PROMISES SHAREHOLDERS 20 GROWTH IN ANNUAL EARNINGS AND RETURN ON EQUITY OVER FIVEYEAR PERIODS IN 1993 THE COMPANY'S OPERATING INCOME GREW BY 20 BUT ITS RETURN ON EQUITY GREW BY ONLY 17 BEFORE ACCOUNTING CHANGES AND A 350 MILLION CHARGE TAKEN FOR EURO DISNEY OF WHICH IT OWNS A 49 STAKE MR EISNER MADE THE REMARKS IN THE OPENING STATEMENT OF DISNEY'S JUSTRELEASED 1993 ANNUAL REPORT A FORUM IN WHICH THE EXECUTIVE IS KNOWN FOR WAXING FOLKSY ABOUT HIS CHILDREN AND THE GREATER GLORY OF DISNEY THIS YEAR WAS NO EXCEPTION HIS HOCKEYPLAYING SON ANDERS MAKES AN APPEARANCE AND MUCH OF THE STATEMENT IS DEVOTED TO A RUMINATION ON MICKEY MOUSE AS THE HEART AND SOUL OF THE COMPANY THE EXECUTIVE ALSO STRESSES HIS THEME THAT DISNEY PRIMARILY IS A SOFTWARE PRODUCER AMID THE NOISE OF THE TECHNOLOGICAL MULTIMEDIA REVOLUTION AND WILL ONLY SEEK ALLIANCES WITH COMPUTER TELEPHONE OR CABLE COMPANIES IF IT IS NECESSARY TO ENSURE ACCESS TO THEIR DISTRIBUTION SYSTEMS FOR DISNEY PRODUCTS BUT FOR THE FIRST TIME THE STATEMENT CONTAINED AN ADMISSION OF MAJOR FAILURE HE CALLED EURO DISNEY OUR FIRST REAL FINANCIAL DISAPPOINTMENT AND A VERY SERIOUS PROBLEM ONE THAT HAS COST AN ENORMOUS AMOUNT OF TIME AND ANXIETY HE BLAMED A RECESSION IN EUROPE A STRONG FRENCH FRANC AGAINST A DEVALUED POUND LIRA AND PESETA LOWERTHANANTICIPATED PERCAPITA SPENDING BY GUESTS A COLLAPSED REALESTATE MARKET THAT PREVENTED PLANNED DEVELOPMENT AROUND THE PARK AND HIGH INTEREST COSTS EURO DISNEY'S HUGE LOSSES HAVE LED TO TALKS WITH DISNEY EURO DISNEY AND ITS LENDERS IF A FINANCIAL RESTRUCTURING ISN'T ACHIEVED BY THIS SPRING DISNEY HAS SAID THE PARK WILL FACE A LIQUIDITY PROBLEM MR EISNER CONTINUED TO BE COY IN THE ANNUAL REPORT ABOUT THE EXTENT TO WHICH DISNEY WOULD BE WILLING TO HELP FINANCE A BAILOUT DISNEY REMAINS COMMITTED TO EXPLORING ALL REASONABLE ALTERNATIVES TOWARD HELPING TO PUT EURO DISNEY ON A SOUND FINANCIAL FOOTING MR EISNER WROTE WE CERTAINLY ARE INTERESTED IN AIDING EURO DISNEY SCA THE PUBLIC COMPANY THAT BEARS OUR NAME AND REPUTATION WE WILL DEAL IN GOOD FAITH BUT IN DOING SO I PROMISE ALL SHAREHOLDERS OF THE WALT DISNEY CO THAT WE WILL TAKE NO ACTION TO ENDANGER THE HEALTH OF DISNEY ITSELF BANKS IN EUROPE INVOLVED IN THE NEGOTIATIONS DECLINED COMMENT BUT AN ANALYST WITH BANQUE NATIONALE DE PARIS A MAJOR INVESTOR RESPONDED TO MR EISNER'S COMMENTS BY SAYING THERE'S EVIDENTLY A BIT OF PRESSURING GOING ON IT'S A GOOD FIGHT 9312300084 931230 POLITICS & POLICY REPUBLICANS LINK CLINTON'S BANKAGENCY REFORM TO THEIR DEMAND FOR HEARINGS ON ARKANSAS S&L BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S CONNECTION TO THE FAILED MADISON GUARANTY SAVINGS & LOAN IS THREATENING TO TURN HIS GOODGOVERNMENT PROPOSAL TO STREAMLINE BANK REGULATION INTO A MESSY POLITICAL DONNYBROOK WHEN MR CLINTON ANNOUNCED HIS PLAN TO FOLD REGULATORY FUNCTIONS OF THE FOUR AGENCIES THAT CURRENTLY OVERSEE BANKS INTO A NEW FEDERAL BANKING COMMISSION IT WON PRAISE FROM MANY AS AN ATTEMPT TO REVAMP THE CURRENT CRAZYQUILT SYSTEM BUT REPUBLICANS ARE TYING THE ISSUE TO THEIR SOFAR UNSUCCESSFUL DEMAND THAT THE HOUSE AND SENATE BANKING COMMITTEES HOLD HEARINGS ON MADISON GUARANTY AND ITS FORMER OWNER JAMES MCDOUGAL LEADING THE GOP ATTACK ON THE REORGANIZATION PLAN IS MODERATE REP JAMES LEACH OF IOWA HE SUGGESTS THAT MR CLINTON MAY BE TRYING TO TIGHTEN HIS GRIP ON THE BANKING SYSTEM IN ORDER TO TURN OFF POTENTIALLY EMBARRASSING INVESTIGATIONS INTO MADISON AND INTO THE STEPHENS INVESTMENTBANKING FAMILY'S OWNERSHIP OF 38 OF THE PARENT OF LITTLE ROCK'S WORTHEN BANK BOTH INSTITUTIONS HAVE HELPED MR CLINTON BORROW OR RAISE FUNDS TO FINANCE HIS POLITICAL CAMPAIGNS MR LEACH IS AGAINST THE REORGANIZATION PROPOSAL REGARDLESS OF WHAT ANY SUBSEQUENT HEARINGS OR INVESTIGATIONS REVEAL ABOUT MADISON GUARANTY OR THE CLINTONS A SINGLE PRESIDENTIALLY CONTROLLED REGULATOR SIMPLY PUTS TOO MUCH POLITICAL POWER IN THE HANDS OF ANY INCUMBENT ADMINISTRATION HE SAYS BUT EVEN REPUBLICANS MORE SYMPATHETIC TO A REVAMPING OF THE REGULATORY SYSTEM HAVE LINKED THE TWO ISSUES FOR EXAMPLE SEN ALFONSE D'AMATO OF NEW YORK THE RANKING GOP MEMBER OF THE SENATE BANKING COMMITTEE AND THE COSPONSOR OF A REGULATORY CONSOLIDATION PLAN VERY SIMILAR TO THE ADMINISTRATION'S SAYS HE MAY TRY TO DELAY ACTION ON CONSOLIDATION UNTIL THE BANKING PANEL AGREES TO HOLD HEARINGS ON MADISON GUARANTY ADMINISTRATION OFFICIALS ARE UPSET BY THE LINKAGE BETWEEN THE ISSUES TREASURY SECRETARY LLOYD BENTSEN SHARPLY REJECTS MR LEACH'S SUGGESTION THAT THE NEW PLAN WOULD GIVE MR CLINTON OR ANY PRESIDENT TOO MUCH CONTROL OVER THE BANKING SYSTEM HOW DOES HE FEEL ABOUT THE FEDERAL JUDICIARY SYSTEM AND THE PRESIDENTIAL APPOINTMENT OF JUDGES THE SECRETARY SNAPS MR BENTSEN SAYS THAT THE ADMINISTRATION JUST WANTS TO FIX AN ARCHAIC SYSTEM THAT MAY HAVE BEEN FINE WHEN BANKERS WORE SPATS AND CARRIED CANES BUT IS TOO CUMBERSOME AND COSTLY FOR TODAY'S BANKING INDUSTRY HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ DEMOCRAT OF TEXAS SAYS HE DOESN'T BELIEVE THAT THE GOP ATTEMPT TO USE MADISON GUARANTY TO BLOCK ACTION ON REGULATORY REFORM WILL WORK REGULATORY CONSOLIDATION MAKES SENSE HE SAYS WHILE THE GOP ALLEGATIONS DON'T AMOUNT TO ANYTHING AS FAR AS I CAN SEE THAT'S A SOUFFLE THAT REFUSES TO RISE FRANK NEWMAN TREASURY UNDERSECRETARY FOR DOMESTIC FINANCE INSISTS THAT WE'RE TRYING TO MAKE GOOD PUBLIC POLICY REGARDLESS OF HOW OTHER PEOPLE BEHAVE HE ADDS THAT IT WOULD BE VERY UNFORTUNATE IF POLITICALLY MOTIVATED CHARGES PREVENTED CONGRESS FROM FOCUSING ON THE MERITS OF THE PROPOSAL EVEN IF THE ADMINISTRATION QUASHES REPUBLICAN ATTEMPTS TO USE MADISON GUARANTY TO DERAIL THE CONSOLIDATION PLAN IT FACES STRONG OPPOSITION FROM THE FEDERAL RESERVE BOARD WHOSE REGULATORY FUNCTIONS WOULD BE AFFECTED BY THE PROPOSED OVERHAUL THE FED AGREES THAT THE CURRENT SYSTEM SHOULD BE CHANGED BUT NOT AT ITS EXPENSE IN AN UNUSUALLY AGGRESSIVE SERIES OF NEWSPAPER ARTICLES AND INTERVIEWS CHAIRMAN ALAN GREENSPAN AND OTHER FED OFFICIALS ARE ARGUING THAT THE FED NEEDS ITS REGULATORY CONTROL IN ORDER TO HAVE REALTIME ACCESS TO THE KNOWLEDGE IT NEEDS TO DEAL WITH FINANCIAL CRISES SUCH AS THE 1987 STOCKMARKET CRASH OR TO CALIBRATE MONETARY POLICY TO CHANGING ECONOMIC CONDITIONS MR BENTSEN THOUGH DISMISSES THESE ARGUMENTS WHAT YOU'RE SEEING HERE IS AN EFFORT TO PROTECT THE STATUS QUO AND TO PROTECT TURF HE SAYS CURRENTLY 58 OF THE NATION'S BANKS AND THRIFTS ARE SUPERVISED BY AT LEAST TWO FEDERAL AGENCIES SOME LARGE BANKING COMPANIES ARE SUPERVISED AND EXAMINED BY ALL FOUR AGENCIES THE FED THE OFFICE OF THE COMPTROLLER OF THE CURRENCY THE OFFICE OF THRIFT SUPERVISION AND THE FEDERAL DEPOSIT INSURANCE CORP UNDER THE CLINTON PLAN THE COMPTROLLER'S OFFICE WHICH REGULATES NATIONAL BANKS AND THE OTS THE SAVINGS AND LOANS REGULATOR WOULD COMBINE AND THE NEW COMMISSION WOULD TAKE THE REGULATORY FUNCTIONS AWAY FROM THE FDIC AND THE FED THE FED WHICH CURRENTLY REGULATES BANKHOLDING COMPANIES AND STATECHARTERED BANKS THAT ARE MEMBERS OF ITS SYSTEM WOULD REMAIN RESPONSIBLE FOR MONETARY POLICY THE OPERATION OF THE PAYMENTS SYSTEM THAT ROUTES ABOUT 2 TRILLION A DAY TO THE RIGHT DESTINATIONS AND THE PROVISION OF LIQUIDITY TO THE BANKING SYSTEM THE FDIC WHICH SUPERVISES ALL OTHER STATECHARTERED BANKS WOULD CONTINUE TO PROVIDE DEPOSIT INSURANCE AND TO CLOSE FAILED BANKS STATECHARTERED BANKS WOULD CONTINUE TO OPERATE UNDER STATE LAWS WHICH ARE OFTEN MORE LIBERAL IN ALLOWING BANK SALES OF INSURANCE AND OTHER NONBANK SERVICES BUT THEY LIKE ALL OTHER BANKS WOULD BE SUBJECT TO FEDERAL SAFETY AND SOUNDNESS RULES ADMINISTERED BY THE NEW COMMISSION ALTHOUGH BANKERS CONSTANTLY COMPLAIN ABOUT THE REGULATORY BURDEN AND OVERLAP THAT CONSOLIDATION IS DESIGNED TO REDUCE FEW HAVE RUSHED TO DEFEND THE ADMINISTRATION'S PLAN ONE REASON SUGGESTS MR BENTSEN IS THAT BANKS ARE AFRAID OF THE FED BUT SOME BANKERS ALSO SHARE SOME OF MR LEACH'S CONCERNS WHILE EUGENE MILLER CHAIRMAN OF COMERICA INC A DETROITBASED BANKHOLDING COMPANY PRAISES THE ADMINISTRATION FOR TRYING TO REDUCE DUPLICATIVE REGULATION HE WORRIES THAT THERE MIGHT BE TOO MUCH POWER WITH JUST HAVING ONE REGULATOR THE INDEPENDENT BANKERS ASSOCIATION OF AMERICA A POLITICALLY NOISY TRADE GROUP THAT REPRESENTS COMMUNITY BANKS AND THE CONFERENCE OF STATE BANK SUPERVISORS WHICH REPRESENTS STATE REGULATORS HAVE LINED UP WITH THE FED AGAINST THE PLAN SMALL BANKS PARTICULARLY THOSE CHARTERED BY THE STATES WORRY THAT A SINGLE BANKING SUPERREGULATOR WOULD TREAT THEM AS SECONDCLASS CITIZENS STILL THE CONSOLIDATION PLAN WILL PICK UP MOMENTUM IF THE FED AND THE ADMINISTRATION CAN REACH AGREEMENT ON A LESS DRASTIC PLAN THAT LEAVES THE FED SOME CONTINUING REGULATORY ROLE EARLY DISCUSSIONS FAILED TO PRODUCE AN AGREEMENT BUT TALKS ARE EXPECTED TO RESUME IN JANUARY EVEN THOUGH TREASURY OFFICIALS ARE ANGRY ABOUT THE INTENSITY OF THE FED'S ATTACK ON THEIR PLAN FROM HIS DESK MR BENTSEN LOOKS AT A 20YEAROLD PICTURE OF HIMSELF THEN A SENATOR TALKING WITH PRESIDENT FORD AND MR GREENSPAN WHO WAS THEN CHAIRMAN OF THE COUNCIL OF ECONOMIC ADVISERS I'M THE ONLY TREASURY SECRETARY WHO HAS THE CHAIRMAN OF THE FED LOOKING DOWN AT HIM MR BENTSEN SAYS 9312300083 931230 ENTERPRISE FOCUS ON FRANCHISING NEW RULINGS CLOAK FRANCHISEES WITH STURDIER ARMOR BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL GETTING RID OF UNWANTED FRANCHISEES IS BECOMING HARDER NEW LAWS AND COURT RULINGS ARE GIVING FRANCHISEES GREATER PROTECTION AGAINST TERMINATION OR NONRENEWAL OF FRANCHISE CONTRACTS SAY FRANCHISELAW SPECIALISTS FOR EXAMPLE A US APPEALS COURT IN CINCINNATI LAST WEEK SHOT DOWN CESSNA AIRCAFT CO ON A RENEWAL ISSUE THE TOPEKA KAN UNIT OF TEXTRON INC HAS BEEN ENGAGED IN A LONG LEGAL BATTLE WITH SMALL GENERAL AVIATION INC OF LANSING MICH WHICH CLAIMS THAT CESSNA UNFAIRLY BROKE OFF THEIR BUSINESS RELATIONSHIP FOR SIX YEARS GENERAL AVIATION WAS A FRANCHISEE FOR SALES AND SERVICE OF CESSNA CONQUEST AIRCRAFT BUT CESSNA IN 1984 REFUSED TO RENEW THE EXPIRING FRANCHISE CONTRACT IN A SUIT FILED IN 1985 IN FEDERAL COURT IN LANSING MICH GENERAL AVIATION MAINTAINED IN PART THAT CESSNA HAD VIOLATED MICHIGAN'S FRANCHISE LAW THAT LAW EXPLICITLY PROTECTS FRANCHISEES AGAINST TERMINATIONS PRIOR TO CONTRACTS' EXPIRATION DATES EXCEPT FOR GOOD CAUSE GENERAL AVIATION HELD THAT THE LAW ALSO IMPLICITLY BARS UNFAIR NONRENEWALS AND AIMED TO PROVE THAT ITS CASE FELL IN THIS CATEGORY CESSNA HOWEVER WON A PRETRIAL RULING THAT THE LAW DOESN'T BAR UNFAIR RENEWALS REVERSING THAT RULING AND ORDERING A TRIAL THE APPEALS COURT SAID THE LAW REQUIRES A LEGITIMATE NONDISCRIMINATORY REASON FOR NONRENEWAL GENERAL AVIATION NOW WILL RESUME SEEKING ABOUT 10 MILLION IN DAMAGE CLAIMS OVER ALLEGEDLY LOST PROFITS SAYS MICHAEL E CAVANAUGH A LANSING ATTORNEY FOR THE COMPANY HIS CLIENT PREVIOUSLY COLLECTED ABOUT 630000 IN DAMAGES IN ANOTHER ASPECT OF THE CASE THE ATTORNEY SAYS HE WILL ARGUE THAT CESSNA WHICH HAD RENEWED OTHER FRANCHISEES' CONTRACTS HAD NO GOOD REASON TO DISCRIMINATE AGAINST GENERAL AVIATION IN TERMINATING GENERAL AVIATION'S FRANCHISE CESSNA ALLEGED THAT THE FRANCHISEE FAILED TO MEET SALES GOALS MR CAVANAUGH SAYS BUT THE COMPANY ACTUALLY WAS ONE OF CESSNA'S BESTPERFORMING FRANCHISEES HE SAYS IN THE LAWSUIT GENERAL AVIATION MAINTAINS THAT THE REAL REASON FOR NONRENEWAL WAS CESSNA'S ANGER WITH THE FRANCHISEE FOR COMPLAINING ABOUT QUALITY OF THE AIRCRAFT THE APPELLATE RULING ABSOLUTELY WILL HELP FRANCHISEES THROUGHOUT THE STATE NOT TO LOSE THE VALUE OF THEIR INVESTMENTS THROUGH NONRENEWALS WITHOUT GOOD CAUSE MR CAVANAUGH ADDS ROGER M CLARK A GRAND RAPIDS MICH ATTORNEY FOR CESSNA SAYS WE'RE DISAPPOINTED WITH THE DECISION HE DECLINES TO DISCUSS DETAILS OF THE CASE A RIVAL PLAN TAKES SHAPE FOR THE SELFREGULATION OF FRANCHISING THE INTERNATIONAL FRANCHISE ASSOCIATION THE MAJOR FRANCHISER LOBBYING GROUP HAS RECENTLY STRESSED VOLUNTARY SELFREGULATORY EFFORTS TO BE OVERSEEN BY THE IFA IN LARGE PART TO AVOID IMPOSITION OF TOUGHER STATE AND FEDERAL CONTROLS NOW THOMAS H MURPHY A FRANCHISING CONSULTANT IN ENGLEWOOD COLO IS PUSHING AN ALTERNATIVE PROPOSAL LAST YEAR MR MURPHY BEGAN PROMOTING HIS IDEA FOR A SELFREGULATORY BODY WITH THE POWER TO POLICE FRANCHISING HE IS NOW CIRCULATING A POSITION PAPER THAT CALLS FOR A FEDERAL BILL AUTHORIZING THE NATIONAL FRANCHISE NETWORK ASSOCIATION MEMBERSHIP WOULD BE MANDATORY FOR BOTH FRANCHISERS AND FRANCHISEES THE NEW ENTITY WOULD UNDERTAKE SELFREGULATION IN FRANCHISING MUCH AS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS PLAYS A DISCIPLINARY ROLE IN THE SECURITIES ARENA MR MURPHY CALLS FOR AN IMPARTIAL BODY FOCUSED ON RESOLUTION OF DISPUTES BETWEEN FRANCHISERS AND FRANCHISEES THE CONSULTANT'S DETAILED PLAN INCLUDES A PROPOSED BUDGET WITH FIRSTYEAR INCOME OF NEARLY 7 MILLION TO BE RAISED FROM FRANCHISERS AND FRANCHISEES IT ISN'T YET CLEAR HOW SERIOUSLY MR MURPHY'S EFFORTS ARE BEING CONSIDERED FRANCHISING LAWYERS SAY MANY FRANCHISERS STILL RESIST ALL FORMS OF REGULATION EVEN SELFREGULATION NONETHELESS MR MURPHY WHO IS ALSO ASSOCIATE EDITOR OF THE CONTINENTAL FRANCHISE REVIEW NEWSLETTER IS AN INFLUENTIAL OPINIONMAKER IN FRANCHISING AND HE SAYS HE HAS EXPLORED THE TOPIC WITH LEGISLATORS FRANCHISEES FRANCHISERS AND LAWYERS A SPOKESMAN AT IFA HEADQUARTERS IN WASHINGTON SAYS MR MURPHY'S PROPOSAL MERITS CAREFUL CONSIDERATION BUT HE ADDS WHY REINVENT THE WHEEL WE'RE ALREADY MOVING TOWARD SELFREGULATION I WAS REALLY AN EMPLOYEE A FORMER FRANCHISEE ARGUES AND HE WINS FRANCHISEES ARE GENERALLY REGARDED AS INDEPENDENT CONTRACTORS NOT EMPLOYEES AN UNUSUAL RULING BY MIGUEL T AUCLAIRVALDEZ AN ADMINISTRATIVE LAW JUDGE IN SAN JOSE CALIF MAKES AN EXCEPTION FOR DALE F KASSLER MR KASSLER A FORMER SANTA CRUZ CALIF FRANCHISEE OF WESTERN TEMPORARY SERVICES INC OF WALNUT CREEK CALIF SAYS HE HAS BEEN UNEMPLOYED SINCE OCTOBER 1991 WHEN HE LEFT THE WESTERN SYSTEM IN AUGUST STATE OFFICIALS REJECTED MR KASSLER'S REQUEST FOR UNEMPLOYMENT COMPENSATION SAYING HE HAD BEEN AN INDEPENDENT CONTRACTOR INELIGIBLE FOR SUCH BENEFITS HOWEVER MR AUCLAIRVALDEZ THIS MONTH SIDED WITH MR KASSLER THE FRANCHISER HAD EXERCISED VIRTUALLY ULTIMATE CONTROL OVER MR KASSLER'S BUSINESS MAKING HIM NO MORE THAN AN ONSITE MANAGER MR AUCLAIRVALDEZ REASONED THE RULING IS SUBJECT TO APPEAL BY THE STATE A SINGLE ADMINISTRATIVE RULING DOESN'T MEAN MUCH FRANCHISING LAWYERS SAY BUT IF STATE COURTS AND FEDERAL AGENCIES SUCH AS THE INTERNAL REVENUE SERVICE WERE TO ADOPT THE SAME LOGIC FRANCHISERS MIGHT FACE BIG INCREASES IN PAYROLL TAXES AND NEW LIABILITY FOR THE ACTS AND OMISSIONS OF FRANCHISEES MEANWHILE ROBERT L PURVIN JR A SAN DIEGO ATTORNEY WHO FREQUENTLY REPRESENTS DISGRUNTLED FRANCHISEES SAYS HE AIMS TO USE THE RULING AS AMMUNITION IN STATE COURT IN SANTA CRUZ WESTERN AND MR KASSLER ARE SUING EACH OTHER THERE FOR FRAUD AND BREACH OF CONTRACT THE UNEMPLOYMENT RULING WILL HELP SHOW THAT WESTERN EXERCISED TOO MUCH CONTROL OVER THE FRANCHISEE MR PURVIN SAYS A TRIAL IS SCHEDULED TO BEGIN MONDAY WESTERN'S SAN DIEGO ATTORNEY NORMAN ALLENBY SAYS MR PURVIN'S STRATEGY IS DOOMED TO FAIL SUCH ADMINISTRATIVE RULINGS MEAN NOTHING IN THE COURTS HE SAYS BRIEFS THE GYMBOREE CHAIN OVERSEEN BY GYMBOREE CORP IN BURLINGAME CALIF BEGAN AN EXTENSIVE CAMPAIGN BEGINNING WITH A CLOTHING DRIVE TO SUPPORT THE MARCH OF DIMES BIRTH DEFECTS FOUNDATION TCG INTERNATIONAL INC THE CANADIAN PARENT OF FRANCHISER SPEEDY AUTO GLASS ACQUIRED NOVUS INC IN MINNEAPOLIS WHICH OVERSEES THE NOVUS WINDSHIELD CHAIN 9312300082 931230 BUSINESS BRIEF NYNEX CORP NEW YORK TELEPHONE UNIT TO CUT HOME PHONE RATES NEW YORK TELEPHONE A UNIT OF NYNEX CORP SAID MANY NEW YORKERS WILL SEE THEIR MONTHLY HOME TELEPHONE BILLS DROP BY ABOUT 1 AFTER A 170MILLION RATE REDUCTION TAKES EFFECT JAN 1 1994 THE COMPANY IS REDUCING ITS RATES FOLLOWING A DEC 20 ORDER FROM THE NEW YORK STATE PUBLIC SERVICE COMMISSION CUTS INCLUDE A DECREASE OF MORE THAN 60 IN CHARGES FOR THE TOUCHTONE SERVICE USED BY MORE THAN 75 OF ITS 73 MILLION NEW YORK CUSTOMERS IN ADDITION THE COMPANY SAID CUSTOMERS IN DOWNSTATE NEW YORK WILL SEE LOWER PRICES FOR MOST CALLS MADE BETWEEN SEVEN LOCAL CALLING AREAS 9312300081 931230 INTERNATIONAL CHINA TAKES STEP TO MAKE ITS CURRENCY CONVERTIBLE BEIJING CHINA WILL UNIFY ITS DUALTRACK EXCHANGERATE SYSTEM AND ALLOW THE YUAN TO TRADE IN A MANAGED FLOAT STARTING JAN 1 IN A LONGEXPECTED STEP TOWARD MAKING THE CURRENCY CONVERTIBLE THE PEOPLE'S BANK OF CHINA THE CENTRAL BANK SAID THE UNITARY AND CONTROLLED FLOATING RATE SYSTEM WOULD BE BASED ON MARKET SUPPLY AND DEMAND CHINESE ECONOMISTS SAY THE MOVE IN EFFECT WOULD RESULT IN A 50 DEVALUATION OF THE CURRENCY AS THE STATESET RATE IS REPLACED BY THE RATE SET AT CHINA'S FOREIGNCURRENCY TRADING CENTERS WITH 80 OF CURRENCY TRANSACTIONS ALREADY CONDUCTED AT TRADINGCENTER RATES THE UNIFICATION OF THE YUAN IS UNLIKELY TO HAVE A HUGE IMPACT ON COMPANIES DOING BUSINESS IN CHINA ON WEDNESDAY THE YUAN'S OFFICIAL VALUE STOOD AT 58 TO THE DOLLAR COMPARED WITH A RATE OF 87 TO THE DOLLAR AT CHINA'S TRADING CENTERS SOME FOREIGN BUSINESS PEOPLE AND ECONOMISTS THINK THE TRUE MARKET RATE LIES CLOSER TO 10 OR 11 TO THE DOLLAR AFTER JAN 1 THE YUAN COULD COME UNDER SOME PRESSURE SAYS A CHINESE ECONOMIST FAMILIAR WITH THE CURRENCY UNIFICATION PLAN BUT THE GOVERNMENT HAS MADE PREPARATIONS IT WON'T ALLOW DRASTIC FLUCTUATIONS CHINA'S DECISION TO REPLACE THE OFFICIAL EXCHANGE RATE WITH THE RATE SET AT THE NATION'S SWAP CENTERS WILL RESULT IN AN EFFECTIVE 33 DEVALUATION OF THE YUAN THE SIZE OF THE DEVALUATION WAS MISSTATED AS 50 IN AN ARTICLE THURSDAY 9312300080 931230 TECHNOLOGY MASSACHUSETTS GENERAL SETS PLAN FOR 40DOCTOR PRACTICE BOSTON MASSACHUSETTS GENERAL HOSPITAL IN A FURTHER STEP TOWARD BUILDING A MEDICAL CONGLOMERATE SAID IT PLANS TO START A GROUP PRACTICE WITH 40 PRIMARYCARE DOCTORS IN SUBURBAN BOSTON THE JOINT VENTURE IS THE LATEST EXAMPLE OF HOSPITALS AND DOCTORS COMING TOGETHER TO FORM VERTICALLY INTEGRATED HEALTHCARE SYSTEMS THAT SEEK TO PROVIDE EVERYTHING FROM FLU SHOTS TO HEART TRANSPLANTS TERMS ARE TO BE NEGOTIATED EARLIER THIS MONTH MASSACHUSETTS GENERAL ANNOUNCED PLANS TO MERGE WITH BRIGHAM & WOMEN'S HOSPITAL AT THE TIME MASSACHUSETTS GENERAL EXECUTIVES SAID THEY WANTED TO PURSUE ALLIANCES WITH PRIMARYCARE DOCTORS HEALTHCARE CONSULTANTS PREDICT SUCH ALLIANCES WILL HAVE A BIG EDGE IN WINNING MAJOR CONTRACTS WITH HEALTH INSURERS PARTICULARLY IF CONGRESS ENACTS MAJOR HEALTHCARE OVERHAUL LEGISLATION MASSACHUSETTS GENERAL SAID IT PLANS TO TEAM UP WITH PRIMARYCARE DOCTORS FROM MASSACHUSETTS ASSOCIATED PHYSICIANS INC IN FRAMINGHAM AND NATICK MASS DALE LODGE CHIEF EXECUTIVE OFFICER OF THE DOCTORS' GROUP SAID THE PACT WON'T BE AN OUTRIGHT ACQUISITION OF THE DOCTORS' PRACTICES BUT COULD LEAD TO CONSTRUCTION OF SOME GROUP OFFICES A DROP IN OVERHEAD COSTS AND MORE REFERRALS BETWEEN THE DOCTORS AND MASSACHUSETTS GENERAL 9312300079 931230 STANDARDS ON DEICING ARE ISSUED FOR SOME PLANES WASHINGTON THE FEDERAL AVIATION ADMINISTRATION ISSUED FEDERAL DEICING STANDARDS FOR COMMUTER AIRLINE SERVICES AND LARGER PRIVATE AIRPLANES THE RULES WHICH ARE SIMILAR TO ONES IMPOSED ON LARGER COMMERCIAL AIRLINES LAST YEAR WILL REQUIRE OPERATORS OF COMMUTER AIRLINES AIRTAXI SERVICES AND LARGE PRIVATE PLANES TO CHECK THEIR AIRPLANES FOR FROST ICE OR SNOW BEFORE TAKING OFF IN WINTER CONDITIONS IN ADDITION THESE COMPANIES AND OWNERS OF LARGE PRIVATE PLANES MUST TRAIN PILOTS ON ICY WEATHER HAZARDS AND ON PROCEDURES FOR CHECKING AIRCRAFT AN FAA SPOKESMAN SAID THE AGENCY DIDN'T SPECIFY THE EXACT CONTENT OR EXTENT OF TRAINING BUT IT SAID IT WOULD REVIEW THE TRAINING PROGRAMS ANNUALLY THE RULES APPLY TO COMMUTER AIRLINES WITH FEWER THAN 30 PASSENGER SEATS OR A CARGO CAPACITY OF 7500 POUNDS OR LESS AND TO PRIVATE AIRCRAFT WITH 20 OR MORE PASSENGER SEATS OR A CARGO CAPACITY OF AT LEAST 6000 POUNDS THE RULES TAKE EFFECT JAN 30 THE SIMILAR RULES FOR LARGER PLANES WERE ISSUED LAST YEAR AFTER A USAIR COMMUTER FLIGHT CRASHED DURING A TAKEOFF AT NEW YORK'S LA GUARDIA AIRPORT THE CRASH WHICH WAS BLAMED ON A BUILDUP OF ICE AND SNOW ON THE PLANE'S WINGS KILLED 27 PEOPLE 9312300078 931230 INTERNATIONAL CHINA'S IDEA FOR BETTER' BABIES WELCOMED PLAN TO REDUCE BIRTH DEFECTS RAISES FEARS MAINLY IN WEST BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING DU GUIGE DIDN'T GET GOOD PRENATAL CARE SO HER SON XINGLONG WAS BORN WEAK AND DEVELOPED BRAIN DAMAGE AFTER A BOUT OF FEVER IN THE 11 YEARS OF XINGLONG'S LIFE MS DU HAS TAKEN HIM TO DOCTOR AFTER DOCTOR HEALTH INSURANCE HAS COVERED SOME OF THE COSTS BUT THE 38YEAROLD ACCOUNTANT AND HER FAMILY HAVE HAD TO PAY FOR MANY EXPENSES VISITING DURING A LUNCH BREAK AT A BEIJING SCHOOL FOR MENTALLY RETARDED CHILDREN MS DU LOOKS AT HER CHUBBY BESPECTACLED SON WITH A MIXTURE OF TENDERNESS AND RESIGNATION SINCE HE WAS LITTLE HE'S ALWAYS TALKED INCESSANTLY AND ON THIS DAY HE DOES SO AS HE CRAMS A BUN INTO HIS MOUTH HEEDLESS OF A RUNNY NOSE SHE GENTLY ADMONISHES HIM NOT TO TALK WITH HIS MOUTH FULL AND WIPES HIS NOSE IF I HAD KNOWN MY CHILD WOULD BE LIKE THIS I WOULD HAVE CHOSEN NOT TO HAVE HIM MS DU SAYS LATER IT'S SO MUCH TROUBLE SO MUCH TIME AND EFFORT CHINA'S GOVERNMENT AGREES A PROPOSED NEW LAW ADVOCATES ABORTION AND STERILIZATION TO PREVENT BIRTHS OF CHILDREN WITH DISABILITIES SOME WESTERNERS FEAR THAT THE LAW WHICH IS EXPECTED TO BE PASSED BY THE NATIONAL PEOPLE'S CONGRESS STANDING COMMITTEE SOON WILL INTRODUCE A NAZISTYLE EUGENICS MOVEMENT AND VIOLATE HUMAN RIGHTS BUT THE MINISTRY OF PUBLIC HEALTH SAID IN A STATEMENT WEDNESDAY THAT THE NEW LAW IS TOTALLY DIFFERENT FROM THE RACIST EUGENICS POLICY PURSUED BY ADOLF HITLER IT SAID THE LAW WOULD SERVE TO REDUCE THE NUMBER OF BIRTHS OF CHILDREN WITH DISABILITIES IN ADDITION ABORTIONS WOULD NEED THE AGREEMENT OF THE PREGNANT WOMAN OR HER GUARDIAN ACCORDING TO AN EARLIER REPORT BY CHINA'S OFFICIAL XINHUA NEWS AGENCY THE LAW WOULD BAN COUPLES WHO CARRY DISEASES SUCH AS MENTAL ILLNESS OR VENEREAL DISEASE FROM MARRYING UNTIL THEY ARE CURED PREGNANT WOMEN DIAGNOSED AS HAVING HEREDITARY DISEASES OR CARRYING ABNORMAL FETUSES WOULD BE ADVISED TO HAVE ABORTIONS WHILE STERILIZATION WOULD BE RECOMMENDED FOR CERTAIN COUPLES DESPITE CHINA'S ASSURANCES THAT ABORTIONS WOULDN'T BE FORCED SUCH A LAW WOULD BE FRIGHTENING SAYS J UPADAHYAY A SENIOR PROJECT OFFICER AT THE WORLD BANK BECAUSE IT'S VERY DIFFICULT TO DRAW THE LINE BETWEEN WHAT IS MILD PERSUASION WHAT IS ADVICE AND WHAT IS FORCE THAT DIFFICULTY IS ACUTE IN CHINA WHICH HAS A COMPREHENSIVE SYSTEM OF SOCIAL CONTROLS AND HASN'T HESITATED TO USE IT TO ENFORCE THE CONTROVERSIAL ONECHILD BIRTH POLICY STORIES ABOUND OF WOMEN BEING PRESSURED THREATENED AND EVEN LOCKED UP OR BEATEN UNTIL THEY AGREE TO ABORT AN EXTRA CHILD BUT FOR MANY CHINESE PARENTS BEING TOLD TO ABORT A CHILD BECAUSE OF THE ONECHILD POLICY IS MUCH DIFFERENT THAN BEING TOLD TO DO SO BECAUSE A FETUS IS UNHEALTHY WHILE MANY CHINESE STILL PUT STOCK IN HAVING MORE CHILDREN ESPECIALLY SONS ANY MOTHER WOULD PREFER TO GET RID OF A DEFECTIVE FETUS SAYS WANG XINGJUAN PRESIDENT OF THE WOMEN'S RESEARCH INSTITUTE AT THE INDEPENDENT CHINESE ACADEMY OF MANAGEMENT SCIENCES BECAUSE WOMEN ARE ALLOWED TO HAVE ONLY ONE BABY EVERYONE HOPES TO HAVE A HEALTHY SMART AND BEAUTIFUL ONE INFANTS WHO ARE BORN WITH DEFECTS OFTEN END UP IN ORPHANAGES AFTER BEING ABANDONED BY THEIR PARENTS AT ONE ORPHANAGE IN GUANGDONG PROVINCE ALMOST ALL OF THE CHILDREN APPEAR TO BE MENTALLY HANDICAPPED LOCKED UP IN A DINGY BARE ROOM WITH NOTHING TO DO THEY SIT ON THE FLOOR BY THE IRON GATE STARING OUT AT A VISITOR FOR PARENTS LIKE ZHAO WEN CHINA'S PROPOSED LAW WOULD BE WELCOME IF THE DOCTOR HAD TOLD ME I WOULD HAVE SUCH A CHILD I WOULDN'T HAVE HAD HER SAYS MR ZHAO SPEAKING OF HIS 7 1/2YEAROLD DAUGHTER THE COST IS TOO GREAT TO SOCIETY TO THE PARENTS AND TO THE CHILD HERSELF THIS ATTITUDE UNDERSCORES A DIFFERENCE BETWEEN CHINA AND THE WEST WHILE WESTERN COUNTRIES UPHOLD PRINCIPLES ABOUT CHOICE AND THE CHRISTIAN CONCEPT OF THE SACREDNESS OF LIFE MANY CHINESE FEEL SUCH THINKING IS A LUXURY CHINA CAN ILL AFFORD BESIDES THE FINANCIAL BURDEN CHINESE PARENTS OF CHILDREN WITH DISABILITIES ALSO FACE HIGH SOCIAL COSTS IN A SOCIETY WHICH VALUES OFFSPRING FOR CONTINUING THE FAMILY LINE AND PROVIDING A KIND OF OLDAGE INSURANCE TO PARENTS HANDICAPPED CHILDREN CAN BE A SOURCE OF SHAME PARENTS ALWAYS HOPE THEIR CHILDREN CAN BE TALENTED AND USEFUL PEOPLE WHEN I FOUND OUT THAT MY DAUGHTER WOULDN'T BE LIKE THAT I COULDN'T RESPECT MYSELF I FELT THAT I WAS DIFFERENT FROM OTHER PEOPLE SAYS MR ZHAO MR ZHAO WHO WORKS AT AN ICE CREAM JOINTVENTURE COMPANY IN BEIJING SAYS HE HAS SINCE COME TO TERMS WITH THE SITUATION ALTHOUGH AT FIRST HE COULDN'T BEAR TO TAKE HIS DAUGHTER YIPING OUT IN PUBLIC NOW HE DOES SO SHE CAN RECEIVE MORE OUTSIDE STIMULUS HE RELATES HOW SHE KNOCKED OVER A BICYCLIST DURING ONE RECENT OUTING THE PERSON SAW SHE WAS JUST A CHILD AND SO WENT ON HIS WAY THEN WHEN HE WAS ALL THE WAY DOWN THE ALLEY YIPING CAME OUT AND SAID ME EXCUSE' HER RESPONSE WAS SLOW AND IT WAS MIXED UP BUT IT WAS STILL THERE HE SAYS IN A VOICE FILLED WITH BOTH PRIDE AND EMBARRASSMENT THE PRESSURE IS TOUGH ON THE KIDS THEMSELVES XINGLONG'S MOTHER SAYS HE SOMETIMES HITS HIS HEAD OVER AND OVER AGAIN AND ASKS WHY HE'S SO STUPID IN THE PAST SHE DIDN'T DARE LET HIM PLAY OUTSIDE BECAUSE ALL THE OTHER NEIGHBORHOOD CHILDREN WOULD BULLY HIM THE COST OF RAISING CHILDREN WITH MENTAL OR PHYSICAL DISABILITIES IS HIGH FOR THE COUNTRY AS A WHOLE ACCORDING TO PUBLIC HEALTH MINISTER CHEN MINZHANG 300000 TO 400000 CHILDREN ARE BORN WITH CONGENITAL DISEASES EACH YEAR ALTOGETHER THE COUNTRY HAS SOME 10 MILLION PEOPLE WHO WERE BORN WITH DISABILITIES HEALTH WORKERS SAY THE MAIN PROBLEM LIES IN POOR RURAL AREAS WHERE RESIDENTS HAVE LESS ACCESS TO PRENATAL CARE AND LESS FAITH IN DOCTORS' WARNINGS ABOUT HEREDITARY DISEASES SOME FARMERS BELIEVE IN LUCK SAYS YAN RENYING A LEADING PROFESSOR OF OBSTETRICSGYNECOLOGY AND A DEPUTY TO THE NATIONAL PEOPLE'S CONGRESS YOU TELL THEM THEIR CHILD HAS A 50 CHANCE OF BEING BORN WITH A DEFECT AND THEY SAY THEY HAVE A 50 CHANCE OF HAVING A HEALTHY KID YOU TELL THEM THE LIKELIHOOD IS 70 AND THEY SAY THEY HAVE A 30 CHANCE OF GETTING LUCKY IN SOME CASES THEY JUST DON'T CARE IN SOME VILLAGES IN GANSU PROVINCE THE MAJORITY OF RESIDENTS ARE RETARDED BECAUSE OF INBREEDING OR VITAMIN AND MINERAL DEFICIENCIES PARENTS THERE OFTEN MARRY OFF THEIR RETARDED CHILDREN SOMETIMES TO OTHER RETARDED VILLAGERS IN ORDER TO CONTINUE THE FAMILY LINE MS YAN SAYS THE NEW LAW WOULD HELP PREVENT SUCH MARRIAGES IN ADDITION SHE AND OTHER HEALTH CARE OFFICERS SAY IT WOULD ALSO STRESS PRENATAL CARE AND COUNSELING AND HELP BRING SUCH SERVICES TO POOR AREAS THAT DESPERATELY NEED THEM A SPRIGHTLY WOMAN IN HER 80S MS YAN BELIEVES EDUCATION IS THE BEST SOLUTION TO PREVENT DEFECTIVE BIRTHS BUT SHE ISN'T TOO WORRIED ABOUT THE ISSUE OF CHOICE EVEN IF THE NEW LAW WERE TO REQUIRE ABORTIONS IN SOME CASES MOST CITY DWELLERS WOULD PROBABLY AGREE WITH DOCTORS' DIAGNOSES SHE SAYS IN THE COUNTRYSIDE WHERE PATIENTS ARE LESS LIKELY TO LISTEN THEY JUST DON'T HAVE TO SHOW UP AGAIN NO ONE WILL GO LOOKING FOR THEM SHE ADDS 9312300077 931230 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN WITH ASIANPACIFIC ENERGY DEMAND EXPECTED TO SURGE 12 ANNUALLY IN THIS DECADE FROM 7 A YEAR IN THE 1980S COUNTRIES IN THE REGION ARE TURNING TO NUCLEAR GENERATORS TO OVERCOME POWER SHORTAGES HAMPERING BOOMING ECONOMIES THE MARKET IS ESTIMATED AT 160 BILLION OVER 15 YEARS DOZENS OF PLANTS ARE PLANNED AS ENTHUSIASM FOR STRONG GROWTH IS OVERPOWERING SAFETY AND ENVIRONMENTAL ISSUES PAKISTAN IS PURSUING A SECOND REACTOR CHINA NEXT YEAR IS TO COMPLETE TWO REACTORS AS IT DEVELOPS A MAJOR NUCLEAR INDUSTRY BY THE YEAR 2000 INDONESIA DESPITE EARTHQUAKE AND VOLCANO RISKS PLANS TO BUILD 12 GENERATORS BETWEEN 2003 AND 2015 JAPAN SOUTH KOREA AND TAIWAN HAVE NUCLEAR EXPANSION PLANS THAILAND IS CONSIDERING A NUCLEAR PLANT TO HELP MEET INCREASED POWER DEMAND BY 2006 BUT MALAYSIA INTENDS TO TAP ALL FOSSILFUEL AND HYDROELECTRIC GENERATING METHODS BEFORE USING ATOMIC POWER AND THE PHILIPPINES MAY CONVERT A MOTHBALLED NUCLEAR STATION INTO A CONVENTIONAL POWER PLANT THE SPANISH GOVERNMENT APPROVED MEASURES THAT CAN LIMIT SHOPPING HOURS AND SUNDAY STORE OPENINGS REVERSING A 1985 DEREGULATION OF RETAILING THE MOVE IS DESIGNED TO HELP SMALL RETAILERS WHO HAD SAID THEY DIDN'T HAVE ENOUGH EMPLOYEES TO OPERATE LONG HOURS AND ON SUNDAYS AND THUS COULDN'T COMPETE WITH DEPARTMENT STORES AND SUPERMARKETS THE CABINET'S DECREE PROMPTED BY THE CURRENT ECONOMIC CRISIS ALLOWS SPAIN'S 17 REGIONAL GOVERNMENTS TO REGULATE SHOPPING TIMES AT STORES STILL STORES WILL BE PERMITTED TO STAY OPEN AT LEAST 72 HOURS BETWEEN MONDAYS AND SATURDAYS AND A MINIMUM OF EIGHT SUNDAYS OR HOLIDAYS A YEAR LEGISLATORS PASSED VIETNAM'S FIRST MEASURE TO PROTECT THE ENVIRONMENT IN PART BY REQUIRING BUSINESSES TO PAY FOR ANY DAMAGE THEY CAUSE THOUGH INDUSTRIAL POLLUTION ISN'T A PROBLEM IN VIETNAM WHICH IS TRYING TO DEVELOP ITS ECONOMY NATIONAL FORESTS IN THE PAST 25 YEARS HAVE SHRUNK TO 25 FROM 40 OF THE COUNTRY'S LAND AREA HARMED BOTH IN WAR BY MILITARY CHEMICALS AND IN PEACETIME BY TOXIC PESTICIDES AND DEFORESTATION FOR FUEL THE LAW PROVIDES FOR THE STATE TO ENCOURAGE DOMESTIC AND FOREIGN INVESTORS TO JOIN IN ENVIRONMENTAL PROTECTION ACTIVITIES MALAYSIA'S LOTTERY AND SWEEPSTAKES TAXES WILL BE RAISED JAN 15 THE OPERATORS WERE NOTIFIED THAT THE GOVERNMENT WILL RAISE TO 7 FROM 5 EACH THE GAMING TAX AND A SEPARATE BETTING AND SWEEPSTAKES DUTY THE GOVERNMENT HAS STEADILY CUT THE CORPORATE TAX RATE IN THE PAST FEW YEARS AND TO ALLOW FURTHER CUTS IS EXAMINING ALTERNATIVE LEVIES INCLUDING A COMPREHENSIVE SALES AND SERVICE TAX GAMBLING TAXES HAVE CHANGED LITTLE WHILE GAMBLING FIRMS' RESULTS HAVE SOARED BECAUSE OF RAPIDLY RISING DISPOSABLE INCOMES AMID ROBUST ECONOMIC GROWTH POLAND SAID ITS POPULATION GROWTH THIS YEAR WAS THE SMALLEST SINCE WORLD WAR II CITING WORSENING LIVING CONDITIONS CAUSED BY THE TRANSITION TO CAPITALISM BIRTHS TOTALED 496000 CONTINUING A STEADY DECLINE FROM 721000 A DECADE AGO AND OUTPACING DEATHS ONLY BY 107000 IN THE NATION OF 385 MILLION PEOPLE LIFE EXPECTANCY IN POLAND AMONG EUROPE'S LOWEST AVERAGES 667 YEARS FOR MEN AND 757 YEARS FOR WOMEN IN AN UNUSUALLY FRANK REPORT A STATERUN CHINESE NEWSPAPER SAID ORGANIZED CRIME RELIES ON CORRUPT OFFICIALS FOR PROTECTION NEARLY ALL OF THESE TYPES OF ORGANIZATIONS HAVE GOVERNMENT OFFICIALS BEHIND THEM THE NATIONAL POLICE REPORT IN THE GUANGMING DAILY SAID SOME OF THE CRIMINAL GANGS HAVE LINKS TO MORE THAN 10 GOVERNMENT OFFICIALS CHINA IS FIGHTING CORRUPTION THAT HAS BEEN CONNECTED TO LOOSENED SOCIAL CONTROLS UNDER MARKETSTYLE ECONOMIC REFORMS RUSSIA PROPOSED TO INCREASE SOCIAL SPENDING NEXT YEAR TO 13 OF GROSS NATIONAL PRODUCT FROM 9 THIS YEAR THE MOVE FOLLOWED THE STRONG SHOWING BY HARDLINERS IN RECENT PARLIAMENTARY ELECTIONS VOTER SENTIMENT HAS AWAKENED LEADERS TO THE PEOPLE'S HARDSHIPS RESULTING FROM FREEMARKET REFORMS CITING A RAPIDLY GROWING GAP BETWEEN RICH AND POOR THE GOVERNMENT PREPARED RULES TO RAISE TAXES ON HIGH INCOMES WITH PROCEEDS TO SUPPORT SOCIAL PROGRAMS SEPARATELY KAZAKHSTAN MAY LEASE TO RUSSIA SOME MILITARY TESTING SITES UNDER A PLANNED ACCORD FOR MOSCOW TO RENT THE BAIKONUR COSMODROME LINCHPIN OF THE FORMER SOVIET UNION'S SPACE PROGRAM THE RUSSIAN SPACE AGENCY SAID BAIKONUR WAS VITAL TO KEEP MOSCOW'S SPACE PROGRAM SOLVENT AS RUSSIA CAN'T AFFORD TO BUILD A SPACECRAFT LAUNCH SITE THE TWO GOVERNMENTS WHICH HAVE DISPUTED BAIKONUR'S OWNERSHIP AND FINANCING AGREED TO PREPARE A PACT NEXT MONTH INCLUDING USE OF THE SEMIPALATINSK NUCLEAR TESTING GROUND THE RENT IS TO BE LINKED TO KAZAKHSTAN'S 13 BILLION DEBT TO RUSSIA THE ITALIAN CABINET APPROVED A BAILOUT VALUED AT SEVERAL HUNDRED MILLION DOLLARS TO SAVE THE STATE BROADCASTER RAI FROM BANKRUPTCY THE PACKAGE INCLUDES A 5 INCREASE IN THE 88 LICENSE FEE THAT ITALIANS PAY EACH YEAR AND A SHARP CUT IN THE LEVY RAI PAYS TO THE STATE MORE THAN 19 MILLION TOURISTS VISITED ISRAEL THIS YEAR A RECORD TOTAL AND A 10 INCREASE FROM LAST YEAR ATTRIBUTED TO MIDEAST PEACE TALKS 9312300076 931230 CREDIT MARKETS BOND PRICES EASE AGAIN WITH SHORTER ISSUES ALSO LOSING GROUND IN ANOTHER THIN SESSION BY THOMAS D LAURICELLA AND LESLIE SCISM STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE PRICE OF THE BENCHMARK 30YEAR TREASURY INCHED DOWNWARD AGAIN YESTERDAY IN MORE LISTLESS TRADING AS MOST BOND INVESTORS SAT OUT THE SESSION TO AWAIT THE NEW YEAR THE LONG BOND ENDED THE DAY AT 99 31/32 DOWN MORE THAN 1/8 POINT OR MORE THAN 125 FOR EACH 1000 IN FACE VALUE AS A RESULT THE YIELD WHICH MOVES INVERSELY TO PRICE ROSE TO 624 UP FROM 623 TUESDAY IT WAS THE THIRD CONSECUTIVE DAY OF DECLINES FOR THE 30YEAR BENCHMARK ISSUE BUT WITH TRADING SO THIN BECAUSE OF THE HOLIDAY SEASON TRADERS WERE RELUCTANT TO READ MUCH MEANING INTO THE DECLINE A TOTAL THREEDAY LOSS OF NEARLY 1/2 POINT MEANWHILE AFTER A RELATIVELY STRONG DAY TUESDAY SHORTERTERM TREASURYS ALSO EDGED DOWNWARD IN PRICE YESTERDAY'S LITTLE BIT OF ACTIVITY LARGELY REPRESENTED PEOPLE TRYING TO STRAIGHTEN OUT POSITIONS BEFORE YEAR END SAID JAMES KENNEY HEAD TRADER AT PRUDENTIAL SECURITIES INC THERE ARE FEWER PARTICIPANTS THAN NORMAL AND AS A RESULT THE ACTION IS CHOPPY AND DIRECTIONLESS IN THE THIN LIQUIDITY OF A YEAREND MARKET PRICES ARE OFTEN MOVED BY TRADES NORMALLY TOO SMALL TO INFLUENCE THE BOND MARKET THERE WAS SOME LIGHT SELLING ON VERY LIGHT VOLUME SAID WARD MCCARTHY A MANAGING DIRECTOR AT STONE & MCCARTHY RESEARCH ASSOCIATES MORE FIGURES DEPICTING A STRONGER ECONOMY FAILED TO ENLIVEN THE MORIBUND MARKET THE COMMERCE DEPARTMENT REPORTED THAT ITS INDEX OF LEADING INDICATORS ROSE 05 DURING NOVEMBER IN LINE WITH MOST EXPECTATIONS EXISTINGHOME SALES MEANWHILE WERE UP A STRONGERTHANEXPECTED 29 DURING NOVEMBER TO A 421 MILLIONUNIT ANNUAL RATE QUITE FRANKLY THE MARKET IS DOING QUITE WELL GIVEN THE STRENGTH OF THE HOMESALES NUMBERS MR MCCARTHY SAID SO YOU HAD TO SCRATCH YOUR HEAD AND WONDER WHY THE MARKET WASN'T DOING TOO BADLY AND TO A LARGE DEGREE IT'S JUST THAT THERE IS NOBODY AROUND MARKETWATCHERS SAID INVESTORS ALSO ARE WRITING OFF SUCH DATA AS OLD NEWS AND MANY INVESTORS RECALL HOW STRONGER FOURTHQUARTER STRENGTH LAST YEAR DISSIPATED INTO SLUGGISH GROWTH IN EARLY 1993 THOSE PARTICIPANTS NOW BET THAT NUMBERS SHOWING ROBUST GROWTH IN LATE 1993 WON'T TRANSLATE INTO FASTER GROWTH IN EARLY 1994 BUT SOME ANALYSTS URGE CAUTION THERE ARE ALREADY INDICATIONS THAT STRONGER FOURTHQUARTER GROWTH WILL SPILL OVER INTO THE NEW YEAR SAID DOUG SCHINDEWOLF A MONEYMARKET ECONOMIST AT SMITH BARNEY SHEARSON INC WHO SEES KEY DIFFERENCES BETWEEN THE ECONOMY'S BEHAVIOR NOW AND A YEAR AGO HE SAID LAST YEAR'S STRENGTH WAS DRIVEN BY TEMPORARY FACTORS SUCH AS AN ELECTIONRELATED SURGE IN CONSUMER CONFIDENCE AND INSURANCE PAYMENTS FROM HURRICANE ANDREW STRENGTH THIS YEAR HE SAID IS MORE ENDURING IT'S PURCHASES OF BIGTICKET ITEMS AND HOUSES IT HAS A VERY DIFFERENT FLAVOR HE SAID MORE ECONOMIC REPORTS ARE DUE OUT TODAY SLATED FOR RELEASE ARE THE WEEKLY JOBLESSCLAIMS FIGURES SINGLEFAMILY HOME SALES AND THE CHICAGO PURCHASING MANAGERS' SURVEY TOMORROW WILL BE A SHORTENED SESSION WITH TRADING SET TO END AT 2 PM EST AHEAD OF NEW YEAR'S DEALERS GATHERING COLLATERAL TO CREATE NEW REALESTATE MORTGAGE INVESTMENT CONDUITS HELPED LIFT PRICES IN A THINLY TRADED MORTGAGE MARKET ALLOWING THE SECTOR TO SLIGHTLY OUTPERFORM TREASURYS THE FEDERAL NATIONAL MORTGAGE ASSOCIATION ANNOUNCED THREE NEW CONDUITS TOTALING ABOUT 948 MILLION THE DEALS WERE COLLATERALIZED WITH 15YEAR AND 30YEAR 65 PAPER AS WELL AS 6 BALLOON MORTGAGE SECURITIES GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 65 ISSUES ENDED 1/32 LOWER AT 99 18/32 WHILE GINNIE MAE 15YEAR 65 SECURITIES WERE UP 1/32 AT 101 29/32 THE COMPARABLEMATURITY TREASURY ISSUE THE 10YEAR NOTE WAS OFF 1/8 POINT FEDERAL HOME LOAN MORTGAGE CORP GOLD 30YEAR 65 ISSUES ENDED 2/32 HIGHER AT 99 24/32 FANNIE MAE 30YEAR 65 ISSUES ENDED 2/32 HIGHER AT 99 20/32 MEANWHILE YESTERDAY MOODY'S INVESTORS SERVICE INC LISTED EIGHT RESIDENTIAL MORTGAGE PASSTHROUGH SECURITIES FOR POSSIBLE CREDIT DOWNGRADE THE RATINGS OF THE SECURITIES CURRENTLY RANGE FROM TRIPLEA TO SINGLEA1 MOODY'S SAID ITS ACTION WAS PROMPTED BY CONCERNS ABOUT THE LEVELS OF DELINQUENCIES FORECLOSURES AND EXPECTED FUTURE LOSSES OF THE UNDERLYING MORTGAGE POOLS THE SECURITIES AREN'T BACKED BY ANY OF THE FEDERAL HOUSING AGENCIES AS A RESULT IF THERE ARE DEFAULTS ON THE MORTGAGES COMPRISING THE SECURITIES ANY LOSSES CONNECTED WITH THE FORECLOSURES WOULD BE PASSED ON TO HOLDERS OF THE PASSTHROUGH SECURITIES ONCE THE SECURITIES' INSURANCE OR OTHER CREDIT ENHANCEMENTS WERE EXHAUSTED THE SECURITIES UNDER REVIEW ARE PRUDENTIAL HOME MORTGAGE CO SERIES 19901 CLASSES A4 A5 AND A6 PRUDENTIAL HOME MORTGAGE CO SERIES 19897 CLASS A1 PRUDENTIAL HOME MORTGAGE CO SERIES 19891 CLASSES A1 AND A2 RFC CONDUIT MORTGAGE SEC SERIES 19914 CLASS A PRUDENTIAL HOME MORTGAGE CO SERIES 19882 PRUDENTIAL HOME MORTGAGE CO SERIES 19893 PAINEWEBBER MORTGAGE ACC IV SERIES 19911 CLASSES A1 AND A2 AND PRUDENTIAL HOME MORTGAGE CO SERIES 19885 CLASS A ACTIVITY REMAINED THIN IN THE CORPORATEBOND MARKET PRICES OF INVESTMENTGRADE ISSUES DECLINED SLIGHTLY WHILE JUNKBOND PRICES FINISHED UNCHANGED NO CORPORATE DEBT WAS PRICED YESTERDAY AND NONE IS EXPECTED TO BE PRICED THROUGH MONDAY HOWEVER LATER NEXT WEEK A COUPLE OF UTILITIES AND INDUSTRIAL COMPANIES MAY PRICE DEBT ONE SYNDICATE OFFICIAL SAID THE DIFFERENCE BETWEEN THE YIELDS OF CORPORATE BONDS AND TREASURYS KNOWN AS THE SPREAD NARROWED SLIGHTLY DURING THE PAST WEEK A SITUATION THAT IS EXPECTED TO CONTINUE THROUGH NEXT WEEK ONE ANALYST SAID SINCE DEC 23 THE DIFFERENCE BETWEEN THE LOWER YIELDS OF TREASURYS AND THE HIGHER YIELDS OF CORPORATE BONDS HAS NARROWED BY ABOUT 004 PERCENTAGE POINT ACROSS THE BOARD IN LACKLUSTER ACTIVITY THE MARKET ANALYST SAID THE BONDS ARE REACTING TO THE RECENT LACK OF NEW ISSUANCE AND THE FACT THAT INVESTORS CONTINUE TO HAVE CASH AVAILABLE TO INVEST HE SAID TYPICALLY AT THE BEGINNING OF THE YEAR CORPORATE SPREADS NARROW SLIGHTLY AND THE SAME IS EXPECTED TO OCCUR IN 1994 HE SAID PRICES OF MUNICIPAL BONDS ENDED NARROWLY MIXED AFTER ANOTHER THIN SESSION DESPITE CONCERNS THAT SUPPLY WILL DWINDLE NEXT MONTH DUE TO BOND CALLS REDEMPTIONS AND LOW ISSUANCE THE PURCHASES THAT WERE DRIVEN RECENTLY BY FEARS OF A MUNI SHORTAGE SEEM TO BE FADING AS THE YEAR WINDS DOWN IN SECONDARY TRADING VALDEZ ALASKA'S 565 BONDS OF 2028 ENDED 1/8 POINT LOWER AT 100 TO YIELD 563 BUT THERE WAS SOME BUYING OF CHICAGO'S 500 REFUNDING BONDS OF 2018 FOR O'HARE INTERNATIONAL AIRPORT AND THE YIELD FELL TO 534 FROM 536 LATE TUESDAY 9312300075 931230 PUNITIVE DAMAGES ORDERED IN CASE AGAINST HEALTH NET RIVERSIDE CALIF AP A JURY ORDERED CALIFORNIA'S SECONDLARGEST HEALTHMAINTENANCE ORGANIZATION TO PAY 77 MILLION IN PUNITIVE DAMAGES FOR DENYING A PATIENT AN EXPERIMENTAL BONEMARROW TRANSPLANT NELENE FOX OF TEMECULA CALIF SUED HEALTH NET HMO A WOODLAND HILLS CALIF UNIT OF HN MANAGEMENT HOLDINGS ALLEGING BREACH OF CONTRACT AND BAD FAITH AFTER IT REFUSED IN 1992 TO COVER THE TRANSPLANT NEIGHBORS AND FRIENDS EVENTUALLY RAISED MORE THAN 200000 TO PAY FOR THE TREATMENT BUT MRS FOX DIED FOUR MONTHS LATER IN APRIL 1993 THE CASE WAS CONTINUED BY HER HUSBAND AND ESTATE I'M JUST REALLY HAPPY IT'S OVER IT HAS BEEN A LONG HAUL NOW NELENE CAN REST IN PEACE AND WE CAN GET ON WITH OUR LIVES AND MOVE ON MRS FOX'S HUSBAND JIM SAID AFTER THE VERDICT WAS READ HEALTH NET DIDN'T RETURN CALLS SEEKING COMMENT MRS FOX WAS DIAGNOSED WITH BREAST CANCER IN JUNE 1991 DESPITE THREE MONTHS OF CHEMOTHERAPY THE CANCER SPREAD TO HER BONE MARROW DOCTORS SAID HER ONLY HOPE WAS A BONEMARROW TRANSPLANT AN EXPENSIVE AND UNPROVEN TREATMENT THAT COULD ALLOW HER TO TOLERATE VERY HIGH DOSES OF CHEMOTHERAPY BUT HER INSURER HEALTH NET SAID IT WOULDN'T PAY FOR THE PROCEDURE WHICH IT CONSIDERED EXPERIMENTAL HER CASE EXEMPLIFIES OTHER BATTLES NATIONWIDE BETWEEN PATIENTS SEEKING COSTLY EXPERIMENTAL TREATMENTS AND INSURANCE COMPANIES STRUGGLING TO CONTAIN HEALTHCARE COSTS THE JURY HAS ALREADY AWARDED THE FOX FAMILY 121 MILLION IN COMPENSATORY DAMAGES 9312300074 931230 HEARD ON THE STREET VONS MIRED IN CALIFORNIA'S DOWNTURN DRAWS FAR MORE NEGATIVE REVIEWS THAN POSITIVE ONES BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL THE CHEAPEST ITEM ON SALE AT VONS COS THE BELEAGUERED GROCERYSTORE CHAIN MAY WELL BE THE COMPANY'S STOCK TO MOST IT HARDLY LOOKS LIKE A BUY BRUISED BY THE PROLONGED RECESSION IN SOUTHERN CALIFORNIA WHERE THE CHAIN IS CONCENTRATED COMPANY SALES HAVE FALLEN ABOUT 8 THIS YEAR TO AN ESTIMATED 51 BILLION THE SHARES HAVE BEEN SLINKING STEADILY DOWN CLOSING YESTERDAY AT 16 UNCHANGED AT LESS THAN 10 TIMES ESTIMATED EARNINGS VONS IS ONE OF THE LOWESTPRICED SUPERMARKET STOCKS AROUND BY SOME WALL STREET ANALYSTS' RECKONING YET MOST ANALYSTS HAVE BEEN STEADILY PULLING THEIR BUY RECOMMENDATIONS ON THE COMPANY AMID CALIFORNIA'S SLUMP NOT JONATHAN H ZIEGLER OF SALOMON BROTHERS THAT MAKES ME LIKE IT MORE HE SAYS THE COMPANY'S CONCENTRATION ON SOUTHERN CALIFORNIA IS A REAL PURE PLAY ON ANY SIGN OF A TURN THERE IF THE STATE'S ECONOMY STABILIZES IN 1994 HE SAYS IT WILL HASTEN VONS'S RECOVERY HE BELIEVES THE ARCADIA CALIF CHAIN CAN EARN 160 A SHARE NEXT YEAR AND START RECAPTURING THE 500 MILLION IN ANNUAL SALES LOST TO RIVALS THIS YEAR BUT HE CAUTIONS THE COMPANY HAS ITS WORK CUT OUT COMPETITION IN SOUTHERN CALIFORNIA HAS BEEN FIERCE SINCE ALBERTSON'S AND SMITH'S FOOD & DRUG CENTERS TWO OUTOFSTATE CHAINS TARGETED THE MARKET IN EXPANSION PLANS A COUPLE YEARS AGO MOREOVER SUPERMARKETS NOW ARE CAUGHT IN THE CROSSFIRE OF A FIGHT BETWEEN WHOLESALE WAREHOUSETYPE CHAINS THAT SELL CERTAIN GROCERIES AT VERY LOW PRICES WITH SALES FLAGGING MANY SUPERMARKETS IN THE AREA HAVE HUSTLED TO CONVERT TO EVERYDAY LOW PRICING NOT VONS ANALYSTS SAY MANAGERS WEREN'T EVEN VISITING EVERY STORE CONTENDS DOUG CHRISTOPHER AN ANALYST WITH LOS ANGELESBASED CROWELL WEEDEN THE ONLY TIME THE STORES LOOKED CLEAN AND STOCKED WAS WHEN MANAGEMENT CALLED IN ADVANCE THAT THEY WERE COMING HE SAYS VONS MAY HAVE BEEN TOO EAGER TO PRESERVE EARNINGS TO REALIZE THE NEED TO CUT PRICES AS A RESULT THE COMPETITION HAS GAINED MARKET SHARE AT VONS'S EXPENSE SALES AT STORES OPEN MORE THAN A YEAR SLIPPED 9 IN THE SECOND QUARTER AND 10 IN THE THIRD QUARTER COMPARED WITH A YEAR EARLIER THE STOCK WOULD HAVE BEEN FAR BETTER OFF IF THEY HAD FOCUSED ON KEEPING SALES HIGH AND LET EARNINGS SLIP SAYS EDWARD COMEAU OF LEHMAN BROTHERS IN PART VONS'S RELUCTANCE TO BOW TO PRICECUTTING PRESSURES ARISES FROM ITS STRENGTHS IT HAS BEEN THE MOST AGGRESSIVE TO INSTALL HIGHPROFITMARGIN DEPARTMENTS SUCH AS BAKERIES AND FLORISTS TO ATTRACT SHOPPERS IT ALSO HAS EXPERIMENTED WITH ELECTRONIC SHELFLABELING AN EXPENSIVE TECHNOLOGY TO REPLACE LABORINTENSIVE WEEKLY PRICE CHANGES SUCH INNOVATION HELPED VONS BECOME THE MARKET LEADER BUT NOW THE COMPANY MAY HAVE TO BACK AWAY FROM SUCH HIGHEND HIGHCOST STRATEGIES ALREADY VONS HAS CUT NEXT YEAR'S CAPITAL SPENDING BUDGET TO 215 MILLION FROM THIS YEAR'S ESTIMATED 270 MILLION OUTLAY AND ANNOUNCED PLANS TO CLOSE 11 OF 341 STORES TO SOME THE MOVES SEEM TOO LITTLE TOO LATE CLOSING 11 STORES THAT'S NOTHING SCOFFS MR COMEAU THEY ARE GOING TO HAVE TO FIGURE OUT THEIR COMPETITIVE STRATEGY IN PRICING SINCE SALES HAVE SLIPPED SO BADLY THAT MEANS CARVING AWAY COSTS NO EASY TASK FOR A ONEMARKET COMPANY WITHOUT EASY WAYS TO CONSOLIDATE OPERATIONS I'VE BEEN CAUTIONING CLIENTS WHO WANT TO BOTTOMFISH THAT THERE'S GOING TO BE PAIN BEFORE THERE'S GAIN SAYS GARY GIBLEN OF PAINEWEBBER HE BELIEVES IT WILL TAKE THE COMPANY SIX MONTHS TO FIGURE OUT HOW TO BECOME MORE PRICEORIENTED INVESTORS' BIGGEST ALLY FOR A SPEEDIER RECOVERY MAY BE VONS'S LARGEST SHAREHOLDER KOLHBERG KRAVIS ROBERTS THE BUYOUT FIRM CONTROLS SAFEWAY INC WHICH HOLDS 35 OF VONS'S STOCK A STANDSTILL AGREEMENT BETWEEN THE TWO COMPANIES WHICH DATES FROM 1988 WHEN VONS BOUGHT STORES FROM SAFEWAY EXPIRED IN AUGUST IT DIDN'T TAKE LONG FOR KKR TO BECOME MORE INVOLVED ON NOV 9 AS PART OF THE RESTRUCTURING VONS ADDED SAFEWAY'S SKILLFUL CHIEF EXECUTIVE OFFICER STEVEN A BURD AND KKR PARTNER JAMES H GREENE JR TO ITS BOARD WHICH ALREADY INCLUDES SAFEWAY'S FORMER CHAIRMAN AND ANOTHER KKR PARTNER THE BOARD HIRED AN EXECUTIVE SEARCH FIRM TO FIND A SUCCESSOR FOR ROGER E STANGELAND VONS'S 64YEAROLD CHAIRMAN WHO UNDERWENT HEART SURGERY THIS FALL GONE ARE THE COMPANY CARS AND EXECUTIVES ARE EXPECTED TO SHARE IN THE BELTTIGHTENING UNTIL THE CHAIN RECOVERS I THINK THESE ARE CAUSES FOR OPTIMISM SAYS SALOMON'S MR ZIEGLER 9312300073 931214 REVIEW & OUTLOOK EDITORIAL ASIDES TWINKLE TWINKLE THE HOLIDAY SEASON OF COURSE BRINGS WITH IT TORTURED ATTEMPTS BY VARIOUS MUNICIPALITIES AND SCHOOLS TO COME UP WITH A CHRISTMAS SCENE THAT WON'T TRIGGER THE ACLU SCROOGES SO IT'S NICE TO SEE ONE INSTANCE OF THE SCENE BATTLE BEING WAGED ON A DIFFERENT FRONT WE'RE TALKING ABOUT THE ARKANSAS JUDGE WHO JUST RULED THAT IT'S OK FOR A LITTLE ROCK COUPLE TO FESTOON THEIR HOUSE WITH THREE MILLION CHRISTMAS LIGHTS INCLUDING A CAROUSEL AN 80FOOT POLE SANTA THE WISE MEN AND EVEN MICKEY MOUSE ABOARD A TRAIN NEIGHBORS FILED THE SUIT CITING MOB SCENES THE LITUP COUPLE HAVE TO POST SECURITY GUARDS TRASH BARRELS AND NOLITTERING SIGNS ALL PARTIES ARE CLAIMING VICTORY AS TO THE ACLU ASSAULTS ON THE SPIRIT OF CHRISTMAS OUR ADVICE TO PUBLIC CRECHE CREATORS IS TRY THROWING IN A MICKEY MOUSE A SECULAR AMERICAN SAINT SEE RELATED LETTER LETTERS TO THE EDITOR ACLU ISN'T SCROOGE WSJ DEC 30 1993 9312140038 YY93 MM12 9312300072 931230 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG SHOPPING FOR COMPUTER SOFTWARE CAN BE A PAIN YOU CAN'T JUDGE A PROGRAM JUST FROM READING THE BOX AND FEW STORES LET CUSTOMERS DO TRYOUTS THAT LEAVES MANY FOLKS RELYING ON RECOMMENDATIONS FROM FRIENDS OR FROM REVIEWERS LIKE ME I CERTAINLY WOULDN'T WANT TO DISPARAGE THE VALUE OF SOFTWARE REVIEWS ESPECIALLY AS I HAVE A FAMILY TO FEED BUT NOTHING CAN REPLACE A HANDSON EVALUATION BY COMPUTER USERS SO I'M PLEASED TO REPORT THAT A BETTER WAY TO SHOP FOR SOFTWARE IS ON THE HORIZON ELECTRONIC SOFTWARE CATALOGS ON CDROM DISKS THE FIRST SUCH CATALOGS ARE AVAILABLE IN LIMITED NUMBERS AND MANY MORE WILL APPEAR IN THE COMING MONTHS THEY CAN BE OBTAINED EITHER BUNDLED WITH NEW COMPUTERS AND OTHER EQUIPMENT OR WILL BE SOLD IN STORES HERE'S HOW THEY WORK YOU GET FOR LITTLE OR NOTHING A CDROM DISK PACKED WITH SCORES OF COMMERCIAL SOFTWARE PROGRAMS FROM RIVAL PUBLISHERS THE DISK IS SPECIALLY ENCRYPTED SO YOU CAN'T JUST RIP OFF THE SOFTWARE PROGRAMS IT CONTAINS BUT YOU CAN BROWSE THROUGH THE ELECTRONIC CATALOG PACKED WITH INFORMATION ABOUT THE PROGRAMS AS WELL AS ELECTRONIC SALES PITCHES BETTER YET YOU CAN TRY OUT THE PROGRAMS BY USING FREE TRIAL VERSIONS ON THE CDROM THAT HAVE BEEN CRIPPLED YOU CAN BUY ANY PROGRAM INSTANTLY VIA CREDIT CARD BY PHONING A TOLLFREE NUMBER YOU GET A SPECIAL CODE TO TYPE IN THAT UNLOCKS THE ENCRYPTED FULLFLEDGED VERSION OF THE SOFTWARE FROM THE CDROM AND COPIES IT TO YOUR COMPUTER'S HARD DISK DRIVE THE MANUAL EITHER IS PROVIDED IN ELECTRONIC FORM OR MAILED TO YOU IN PRINTED FORM I'VE BEEN TRYING OUT SOME OF THE EARLY ENTRIES IN THE FIELD AND FOUND THEM ALL WANTING IN SOME WAY SOME OF THIS IS THE FAULT OF THE CATALOG VENDORS AND CURIOUSLY SOME OF IT CAN BE BLAMED ON RESTRICTIONS IMPOSED BY THE WORLD'S LEADING SOFTWARE COMPANY MICROSOFT CORP WHICH ARE IMPEDING THE NEW FORM OF DISTRIBUTION IN MY VIEW MICROSOFT IS INSISTING THAT AT LEAST IN THE CASE OF ITS MAJOR PRODUCTS CATALOG MAKERS PLACE MICROSOFT'S SOFTWARE ON A SEPARATE CDROM THE OFFICIAL REASON IS TO ENSURE THE RIGHT PRESENTATION AND DOCUMENTATION BUT IT'S HARD TO ESCAPE THE IMPRESSION THAT MICROSOFT IS JUST THROWING ITS WEIGHT AROUND AND THE EFFECT IS TO CREATE A SORT OF DIGITAL APARTHEID THAT DISRUPTS COMPARISON SHOPPING ALSO THE GIANT COMPANY HAS SO FAR REFUSED TO PERMIT THE USE OF WORKING TRIAL VERSIONS IN MOST CASES FOR ITS FLAGSHIP PRODUCTS MICROSOFT FEARS CLEVER HACKERS CAN CONVERT THE TRIAL PRODUCTS INTO FULL VERSIONS BUT THE SMALL NUMBER OF HACKERS ABLE TO DO THAT PALES IN COMPARISON TO HONEST CUSTOMERS WHO'LL BE UNABLE TO FULLY EVALUATE MICROSOFT PRODUCTS ONE OF THE FIRST CDROM CATALOGS IS CALLED TESTDRIVE FOR IBMCOMPATIBLES FROM TESTDRIVE CORP 8007888055 ITS STRENGTH IS THAT NEARLY EVERY PRODUCT ON THE DISK CAN BE TRIED OUT VIA A LIMITEDUSE TRIAL VERSION BUT THE FIRST EDITION OF TESTDRIVE REQUIRES COMPLEX CHANGES TO YOUR PERSONAL COMPUTER'S CONFIGURATION FILES WHICH CAN BOTCH UP OTHER SOFTWARE IT LACKS MICROSOFT PRODUCTS DUE TO THE RESTRICTIONS AND THE PRICES IT OFFERS ARE A BIT HIGH IN MY VIEW COMPARED WITH MAILORDER HOUSES TESTDRIVE SAYS IT HAS COMPLETELY REVISED ITS CDROM AND PLEDGES THAT ITS NEXT RELEASE DUE IN FEBRUARY WON'T POSE ANY TECHNICAL PROBLEMS THE COMPANY ALSO SAYS IT IS HOPING TO FEATURE SOON AT LEAST A FEW OF MICROSOFT'S MINOR PRODUCTS AND IT WILL OFFER MORE AGGRESSIVE PRICING ABOUT TO ENTER THE FRAY WITH AN IBMCOMPATIBLE ELECTRONIC CATALOG IS A PRODUCT CALLED ON HAND 8007638226 FROM SOFTBANK INC BASED ON THE PRERELEASE VERSION I TESTED ON HAND IS HANDSOMELY DESIGNED CAUSED NO TECHNICAL OR CONFIGURATION PROBLEMS AND INCLUDES DOZENS OF MICROSOFT PRODUCTS BUT THE MICROSOFT PROGRAMS ARE ON A SEPARATE DISK AND THE CATALOG LISTINGS DON'T PERMIT EASY DIRECT COMPARISONS BETWEEN THEM AND COMPETING PRODUCTS ALSO NONE OF THE MICROSOFT PRODUCTS OFFERS A WORKING TRIAL VERSION INDEED ON HAND SUFFERS OVERALL FROM A PAUCITY OF TRIAL VERSIONS AND ITS PRICES ARE TOO HIGH SOFTBANK SAYS THAT BY THE TIME IT LAUNCHES ITS FIRST EDITION IN ABOUT A MONTH IT HOPES TO CUT PRICES ADD A FEW MORE TRIAL VERSIONS AND AT LEAST LIST THE MICROSOFT PRODUCTS NEXT TO THEIR COMPETITORS EVEN IF THEY REMAIN SEGREGATED APPLE COMPUTER ALSO IS OUT WITH A DISK OF MACINTOSH SOFTWARE CALLED SOFTWARE DISPATCH 8009372828 EXT 200 IT ALSO LACKS MICROSOFT PRODUCTS INDEED I THOUGHT APPLE'S DISK HAD A VERY SKIMPY PRODUCT LIST OVERALL PRICES THAT ALSO WERE A SHADE TOO HIGH AND A BLAND UNATTRACTIVE DESIGN ANOTHER MAC DISK CALLED INSTANT ACCESS 8006848080 FROM MULTIPLE ZONES INTERNATIONAL WAS A BIT BETTER ON DESIGN AND PRICE AND EVEN HAD A TRIAL VERSION OF ONE MICROSOFT PRODUCT WORKS BUT IT HAD NONE OF MICROSOFT'S BIG APPLICATIONS AND LACKED TRIAL VERSIONS FOR MANY OTHER LISTED PRODUCTS ONE PRETTY WELLDONE ELECTRONIC CATALOG IS JUST FOR KIDS CALLED CLUB KIDSOFT 8003546150 FROM PRIVATELY HELD KIDSOFT INC IT RUNS ON BOTH IBMCOMPATIBLES AND MACS AND COMES WITH A COLORFUL PRINTED CHILDREN'S MAGAZINE AND SOME COOL FREE COMPUTER GAMES FOR PRESCHOOLERS ITS BIG FLAW IS A RELATIVE PAUCITY OF WORKING TRIAL VERSIONS OF THE PROGRAMS IT OFFERS I'M FAIRLY OPTIMISTIC THAT ALL THESE PRODUCTS AND OTHERS FROM COMPANIES SUCH AS IBM WILL OVERCOME THESE EARLY FLAWS AS THE GENRE MATURES IN 1994 OF COURSE USERS STILL WON'T WANT TO MISS THOSE VITAL SOFTWARE REVIEWS IN THE NEWSPAPER I HOPE 9312300071 931230 LETTERS TO THE EDITOR TAXPAYER IS AT BOTTOM OF EVERY DEEP POCKET' ERIC BREINDEL'S DEC 15 RULE OF LAW COLUMN WHO SAYS CRIME DOESN'T PAY CHASTISED THE NEW YORK TRIAL JUDGE AND JUDGES AT TWO LEVELS OF APPEAL FOR FACILITATING AND UPHOLDING A 43 MILLION AWARD TO A CAREER CRIMINAL INJURED IN THE COURSE OF COMMITTING AN ASSAULT I SHARE MR BREINDEL'S OUTRAGE OVER THE OUTCOME OF THIS CASE UNFORTUNATELY HE SUFFERS FROM A SIMILAR MYOPIA TOWARD THE END OF THE ARTICLE HE STATES LET'S HOPE MOREOVER THE JURY REALIZED THAT THE TAXPAYERS ARE FOOTING THE BILL HERE AND NOT SOME DEEP POCKETS' INSURANCE COMPANY WHO DOES HE THINK ULTIMATELY PAYS WHEN INSURANCE COMPANIES HAVE TO PAY IS IT REALLY SO DIFFERENT WHEN PEOPLE PICK UP THE TAB ON APRIL 15 THROUGH THE TAX MECHANISM OR ON ANY GIVEN DAY OF THE YEAR WHEN THE INSURANCE PREMIUM IS DUE AND BY THE WAY THERE IS NO DEEP POCKET INSURER IN NEW YORK OR IN MOST MUNICIPALITIES ACROSS THE COUNTRY BECAUSE OF RAMPANT LAWSUIT ABUSE AGAINST THESE PARTICULAR DEFENDANTS JUDGES AND LEGISLATORS ARE APPARENTLY INDIFFERENT TO THAT ECONOMIC REALITY WHEN NOTIONS OF JUSTICE AND EQUITY VARY ACCORDING TO WHO WILL PAY WE HAVE GIVEN UP ONE OF THE PILLARS OF A DEMOCRATIC SOCIETY 9312300070 931230 LETTERS TO THE EDITOR KOREANS FILL VOID IN BLACK COMMUNITY IN REFERENCE TO YOUR DEC 13 EDITORIAL HELPING BLACK ENTREPRENEURS BALONEY TO TIM BATES AND HIS ASSESSMENT OF THE COMMUNITY REINVESTMENT ACT AND KOREAN ENTREPRENEURSHIP KOREANS SET UP BUSINESSES IN BLACK NEIGHBORHOODS TO FILL A BUSINESS VOID NOT FULFILLED BY BLACK ENTREPRENEURS THEMSELVES THEY ARE MERELY TAKING THE PLACE OF PRIOR IMMIGRANT GROUPS THAT HAVE LONG USED THIS MARKET FOR THEIR PERSONAL ADVANCEMENT FIRST SHUNNED BY MAINSTREAM WHITES THEY SEEK ECONOMIC OPPORTUNITY WHERE THEY CAN AND THE BLACK COMMUNITY BECOMES THE MARKET OF LEAST RESISTANCE CONTRARY TO MR BATES'S DECLARING THAT THESE BUSINESSES PROVIDE MEAGER RETURNS I SUGGEST CONVENIENCE STORES SUBSTANDARD INSURANCE PAWN SHOPS RENTTOOWN STORES AND OTHER FORMS OF USURY PROVIDE EXCELLENT RETURNS IT IS THESE EXCELLENT RETURNS AND THIS GULLIBLE MARKET THAT DEMAND THEIR EXISTENCE IN THE FIRST PLACE THE COMMUNITY REINVESTMENT ACT IS A BANDAID REMEDY TO A LARGER NEGATIVE CULTURAL ETHOS IF BLACKS NEED CAPITAL TO START BUSINESSES THEY FIRST NEED TO RID THEMSELVES OF A CULTURAL BIAS TO COMPENSATORY CONSUMPTION THE EXPENDING OF PRECIOUS CAPITAL ON GOODS AND SERVICES OF DUBIOUS BENEFIT CONTINUE TO ROB THE BLACK COMMUNITY OF THE ABILITY TO FINANCE ITSELF 9312300069 931230 LETTERS TO THE EDITOR FIRED FOR BELIEVING WHAT SHE TAUGHT IN RESPONSE TO GEORGE MARSDEN'S RELIGIOUS PROFESSORS ARE THE LAST TABOO EDITORIAL PAGE DEC 22 SECULAR INSTITUTIONS ARE NOT THE ONLY PLACES OF HIGHER LEARNING IN AMERICA WHERE ONE CAN FIND THE SORT OF RELIGIOUS DISCRIMINATION MR MARSDEN DESCRIBES MY CLIENT WAS AN INSTRUCTOR WITH A STERLING ACADEMIC RECORD WHO WAS FIRED FROM TEACHING IN A RELIGIOUS STUDIES DEPARTMENT BECAUSE SHE HAPPENS TO BE A PRACTICING CATHOLIC WHO DOES NOT DISSENT FROM CHURCH TEACHING THE ILLINOIS HUMAN RIGHTS DEPARTMENT RECENTLY FOUND SUBSTANTIAL EVIDENCE THAT SHE WAS DISCRIMINATED AGAINST ON THE BASIS OF HER RELIGION IN HER CASE SHE DID NOT EVEN INJECT HER RELIGIOUS BELIEFS INTO THE CLASSROOM IT WAS ENOUGH THAT FACULTY MEMBERS KNEW OF HER PERSONAL RELIGIOUS BELIEFS THE DISCRIMINATING INSTITUTION DEPAUL UNIVERSITY AN OSTENSIBLE CATHOLIC UNIVERSITY HER CASE IS STILL PROCEEDING 9312300068 931230 MCI IS PLANNING LOCAL NETWORKS IN MAJOR CITIES LONGDISTANCE CALL TRAFFIC COULD BYPASS BABY BELLS WITH CABLE FIRMS' HELP BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL MCI COMMUNICATIONS CORP IN THE BOLDEST ATTACK YET ON THE LOCAL BELL TELEPHONE MARKET PLANS TO SPEND MORE THAN 1 BILLION TO CONSTRUCT LOCAL NETWORKS IN MOST MAJOR US CITIES ACCORDING TO PEOPLE CLOSE TO MCI MCI WHICH LED THE CHALLENGE TO AMERICAN TELEPHONE & TELEGRAPH CO'S MONOPOLY IN THE 1970S PROMPTING AT&T'S BREAKUP NOW WANTS A PIECE OF THE BABY BELLS' LUCRATIVE BUSINESSES IT'S THE ULTIMATE CREAMSKIMMING OPPORTUNITY SAID ONE PERSON WHO HAS SEEN MCI'S PLAN THE BABY BELL LOCALSERVICES TRAFFIC IS THE MOST PROFITABLE IN COMMUNICATIONS AND THE MOST ACCESSIBLE SINCE EVERY OTHER LONGDISTANCE CARRIER WANTS ALTERNATIVES TO CARRY THEIR TRAFFIC AND CORPORATIONS WANT COMPETING CARRIERS MCI IS TAKING DIRECT AIM ON THIS MCI'S MOVE WHICH HE SAID COULD BE ANNOUNCED AS EARLY AS NEXT WEEK MAY GET SOME POWERFUL ASSISTANCE FROM THE CABLETELEVISION GIANTS MCI HAS SAID IT HAS BEEN IN TALKS IN THE PAST YEAR WITH CABLE COMPANIES SUCH AS TELECOMMUNICATIONS INC AND TIME WARNER INC ABOUT BYPASSING LOCAL PHONE NETWORKS AND HAVING THE CABLETV COMPANIES CARRY ITS LONGDISTANCE TRAFFIC TO LOCAL CABLE SUBSCRIBERS PARTICULARLY CORPORATE CUSTOMERS CURRENT OPERATORS OF SUCH BYPASS SERVICES HAVE LESS THAN 1 OF THE 80 BILLIONPLUS LOCALSERVICE MARKET MCI YESTERDAY DECLINED TO COMMENT ON ITS PLAN BUT PEOPLE WHO HAVE SEEN IT SAID THE LONGDISTANCE SERVICE COMPANY HAS BEEN PRIVATELY TELLING ANALYSTS AND INSTITUTIONAL INVESTORS ABOUT ITS PROJECT OVER THE LAST FEW WEEKS THESE SOURCES SAID THE FIRST STAGE OF MCI'S PLAN CALLS FOR THE INSTALLATION OF NETWORKS IN THE 20 LARGEST US CITIES INCLUDING NEW YORK CHICAGO LOS ANGELES AND ATLANTA OVER THE NEXT TWO YEARS THEREAFTER MCI INTENDS TO BUILD NETWORKS IN 80 TO 100 MARKETS THEY SAID MCI ALSO PLANS TO OFFER LOCAL BYPASS CONNECTIONS TO OTHER MAJOR LONGDISTANCE CARRIERS INCLUDING AT&T AND SPRINT CORP THE NO 3 US CARRIER THEY ADDED MCI'S PROJECT COMES DURING A PERIOD OF CATACLYSMIC CHANGE IN THE LOCALSERVICE ARENA PHONE AND CABLETV COMPANIES ARE GEARING UP TO COMPETE IN PHONE AND VIDEO SERVICES OTHERS WOULD RATHER MARRY SUCH AS BELL ATLANTIC CORP WHICH HAS ANNOUNCED A 26 BILLION AGREEMENT TO ACQUIRE TCI THE LARGEST US CABLETV COMPANY AT THE SAME TIME MCI IS BECOMING INCREASINGLY VULNERABLE TO A PHONECOMPANY ATTACK ON ITS TURF THE SEVEN BIG BELL COMPANIES ARE SEEKING FEDERAL APPROVAL TO ENTER THE 60 BILLION US LONGDISTANCE MARKET NOW DOMINATED BY AT&T ANALYSTS NOTE THAT THE REGIONAL BELLS HAVE FINANCIAL HEFT AND ACCESS TO LOCAL CUSTOMER RECORDS THAT GIVES THEM A MARKETING ADVANTAGE OVER MCI YESTERDAY TWO BELL COMPANIES SAID MCI'S PLAN BUTTRESSES THEIR ARGUMENT FOR PERMISSION TO OFFER LONGDISTANCE SERVICES HERE IS A MAJOR LONGDISTANCE COMPANY VERBALLY OPPOSED TO OUR ENTRANCE INTO LONGDISTANCE SERVICES WHILE AT THE SAME TIME IT VOICES INTEREST IN ENTERING THE LOCALSERVICES MARKET SAID RICHARD NOTEBAERT PRESIDENT OF AMERITECH CORP WE'VE BEEN SAYING THERE WILL BE A NETWORK OF NETWORKS AND MANY SUPPLIERS I CAN'T WAIT TO COMPETE NYNEX CORP'S GOVERNMENTRELATIONS VICE PRESIDENT THOMAS TAUKE ADDED FREE AND OPEN COMPETITION WOULD BE BEST FOR CONSUMERS BUT THE REGIONAL BELL COMPANIES EXTRACT GARGANTUAN FEES FROM AT&T MCI AND OTHERS FOR CARRYING LONGDISTANCE CALLS AND DATA TRAFFIC TO AND FROM LOCAL SUBSCRIBERS MCI HAS BEEN TALKING WITH THE CABLETV COMPANIES ABOUT CARRYING ITS TRAFFIC LOCALLY TO BYPASS THESE STIFF FEES WHICH CURRENTLY AMOUNT TO AT LEAST 45 CENTS FOR EVERY DOLLAR MCI TAKES IN OR 55 BILLION OUT OF ITS ABOUT 12 BILLION IN ANNUAL REVENUE AN INTERNAL MCI STUDY DRAWN UP IN THE PAST YEAR SHOWS THAT MCI COULD CUT THESE SOCALLED ACCESS COSTS BY 20 TO 30 CENTS OUT OF EACH REVENUE DOLLAR ACCORDING TO PEOPLE FAMILIAR WITH MCI'S STRATEGIC PLANNING THEY SAID THIS WOULD TRANSLATE INTO SAVINGS OF AS MUCH AS 300 MILLION ANNUALLY IF MCI'S NEW NETWORKS WERE TO HANDLE JUST MCI'S LOCAL NEEDS IN MAJOR CITIES ONE POTENTIAL CABLEOWNED VEHICLE COULD BE TELEPORT COMMUNICATIONS GROUP WHICH OPERATES ALTERNATIVE LOCAL NETWORKS IN 12 US CITIES WITH FOUR MORE NETWORKS UNDER CONSTRUCTION TELEPORT BASED IN STATEN ISLAND NY IS JOINTLY OWNED BY TCI COX ENTERPRISES INC COMCAST CORP AND TIME WARNER A LINKUP WITH TELEPORT WOULD CREATE SOME INTRIGUING PARTNERSHIPS WITH SEVERAL BABY BELLS POTENTIALLY GUNNING FOR THEIR SIBLINGS' LOCAL CUSTOMERS BELL ATLANTIC WOULD GET A PIECE OF TELEPORT THROUGH ITS TCI INVESTMENT TIME WARNER IS ALREADY ALIGNED WITH U S WEST INC AND SOUTHWESTERN BELL CORP IS LINKED WITH COX IN A JOINT SERVICES VENTURE WHILE MUCH OF THE BABY BELLS' LOCAL COMPETITION COMES FROM TELEPORT THE LOCAL COMPANIES ARE ALSO BEING CHALLENGED BY METROPOLITAN FIBER SYSTEMS A SIMILAR OPERATOR BASED IN OMAHA NEB THAT HAS MORE THAN A DOZEN NETWORKS IN MAJOR US CITIES MFS CHAIRMAN JAMES Q CROWE SAID MCI'S POTENTIAL ENTRY INTO HIS MARKET RATIFIES OUR BUSINESS PLAN AND THE STRATEGIC VALUE OF OUR NETWORK MUCH OF THE FUNDING FOR MCI'S PLAN WILL COME FROM THE 43 BILLION IN CASH IT EXPECTS TO RECEIVE FROM THE SALE IN JUNE OF A 20 STAKE TO BRITISH TELECOMMUNICATIONS PLC PEOPLE FAMILIAR WITH THE PLAN SAID MCI HAS ALREADY RECEIVED ABOUT 830 MILLION OF BT'S PAYMENT AND WILL GET THE REMAINDER WHEN THE DEAL IS CLOSED SOMETIME IN 1994 THOSE PEOPLE SAID MCI WILL EXPAND ITS USE OF MAJOR TELEGRAPH ASSETS AND HARDTOACQUIRE LOCAL RIGHTSOFWAY IT BOUGHT FROM WESTERN UNION CORP IN MARCH 1990 THESE OLD CABLE CONDUITS REACH INTO MOST MAJOR CORPORATE BUILDINGS IN THE BUSINESS DISTRICTS OF EVERY US CITY PEOPLE FAMILIAR WITH MCI'S PLAN SAID THE COMPANY INTENDS TO RUN OPTICAL FIBER THROUGH THESE PIPES TO THE PHONE SYSTEMS USED BY COMPANIES AND INSTALL SWITCHES TO EXCHANGE TRAFFIC WITH THE REGULAR PHONE NETWORK ITS OWN LONGDISTANCE HIGHWAY AND THOSE OF OTHER CARRIERS 9312300067 931230 BEYOND WASHINGTON MIDDLE AMERICA IN CLINTON'S FIRST YEAR REPORT CARD THE PRESIDENT AS SEEN IN ILLINOIS PRAGMATIC ZESTFUL TRYING HARD BUT FEW PEOPLE FIND RESULTS OF REAL BENEFIT TO THEM AND SOME FEEL BETRAYED GIVE THE MAN A CHANCE' BY DENNIS FARNEY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO BILL CLINTON IS A HUMANSIZED PRESIDENT THAT IS HIS STRENGTH AND HIS VULNERABILITY PEOPLE DON'T HOLD HIM IN AWE BUT THEY THINK HE IS A PERSONABLE GUY HE IS LIKE A KID BROTHER BURSTING WITH TERRIERLIKE ENERGY THE KID IS FULL OF IDEAS INCLUDING BAD IDEAS SOME THINK BUT FEW PEOPLE DOUBT THAT HE IS TRYING THEY OFFER HIM ADVICE CLUCK ABOUT HIS HAIRCUTS APPROVE OR DISPUTE HIS DECISIONS IN A STRIKINGLY PERSONAL WAY SUCH A CARING MAN BASICALLY HE'S TOO NICE A GUY TO BE IN POLITICS SAYS BONNIE TJADEN 42 A PHARMACY TECHNICIAN IN DOWNSTATE VANDALIA HE NEEDS TO TIGHTEN UP THE REINS WORRIES OTHELLO GREENE 53 A CORRECTIONS OFFICER HERE JOHN WELZENBACH 41 IS AN ARLINGTON HEIGHTS PHOTOGRAPHER WHO DIDN'T VOTE FOR MR CLINTON AND STILL WOULDN'T BUT HE SAYS IT WOULD BE A HOOT TO HAVE HIM OVER FOR DINNER ALL THIS REPRESENTS PROGRESS FOR MR CLINTON SINCE TAKING OFFICE WITH A SHAKY 43 OF THE NATIONAL VOTE HE HAS ESTABLISHED HIMSELF AS AN EARNEST FELLOW WHO IS WORKING HARD FOR CHANGE BUT THERE IS A DOWN SIDE AND IT IS SUBSTANTIAL WHILE PEOPLE WANT CHANGE THEY DON'T AGREE ON THE KIND OF CHANGE THEY WANT ALTHOUGH MR CLINTON SEEMS A DIFFERENT KIND OF DEMOCRAT THIS VERY DIFFERENTNESS HAS UNHINGED TRADITIONAL CONSTITUENTGROUP ALLIANCES AND EMBITTERED THE GUTLEVEL DEMOCRATS OF ORGANIZED LABOR MOST FUNDAMENTALLY ALTHOUGH PEOPLE SEE HIM AS WORKING HARD THEY HAVEN'T SEEN THE HARD WORK PAY OFF FOR THEM AT LEAST NOT YET IN A YEAR THAT SAW MR CLINTON EXPEND THE LION'S SHARE OF HIS ENERGIES ON YESTERDAY'S PROBLEM THE DEFICIT AND TOMORROW'S VISION EXPANDED WORLD TRADE WHAT MAY HAVE GOTTEN LOST WAS TODAY EVERYTHING HE'S DONE IS FOR THE COUNTRY AND THAT'S GOOD SAYS CHERYL MISON 40 A LIFELONG REPUBLICAN WHO VOTED FOR MR CLINTON BUT I HAVEN'T SEEN HIM DO ANYTHING FOR ME PERSONALLY AND SO BILL CLINTON A MAN ON A HIGHWIRE IS PERFORMING ABOVE A TATTERED POLITICAL SAFETY NET PEOPLE DON'T DEFINE HIM IN IDEOLOGICAL TERMS AS FOR EXAMPLE THEY DID RONALD REAGAN RATHER THEY DEFINE HIM AS HE SEEMS TO DEFINE HIMSELF AS A PRAGMATIST THEY WILL JUDGE HIM AS THEY JUDGE AN AUTO REPAIRMAN ON RESULTS BUT SHOULD HIS RESULTS COME A CROPPER THERE WILL BE LITTLE BELOW TO CATCH HIS FALL HE WILL HAVE NEITHER STRONG IDEOLOGICAL LOYALTY NOR INTENSE PARTISAN SUPPORT LACKING BOTH MR CLINTON IS ESPECIALLY VULNERABLE TO THE RECENT ALLEGATIONS OF MARITAL INFIDELITY AND OF A TOOCOZY RELATIONSHIP WHILE GOVERNOR OF ARKANSAS WITH A SAVINGS AND LOAN THAT EVENTUALLY FAILED THEY THREATEN TO UNDERMINE THE FRAGILE TRUST OF PEOPLE WHO ARE ALREADY PREDISPOSED BY DECADES OF WASHINGTON SCANDALS TO EXPECT THE WORST OF THEIR LEADERS THERE IT'S STILL JUST IFFY JUST ALLEGATIONS SAYS 56YEAROLD NANCY JEFFERS OF SUBURBAN OAK LAWN BUT GOD IT'S SO HARD TO TRUST A GUY WHEN THIS KIND OF STUFF COMES OUT THE ALLEGATIONS WHILE CERTAINLY DAMAGING AREN'T DECISIVE AT THIS POINT MOST PEOPLE ARE TAKING A WAITANDSEE ATTITUDE OFTEN MINGLED WITH A SINKING HEREWEGOAGAIN FEELING THAT WASHINGTON IS OFF ON ANOTHER OF ITS PERIODIC POLITICAL BLOODLETTINGS MR CLINTON EVEN DRAWS SOME SYMPATHY FROM PEOPLE WHO HEARTILY DISLIKE HIS POLICIES WHY ALL THE SUDDEN IS THIS COMING UP NOW DEMANDS JOHN W OLMSTEAD III 38 A FORMER COLLEGE DEFENSIVE TACKLE AND NOW A VOLUNTEER HIGHSCHOOL COACH IN CHICAGO'S SOUTHWEST SUBURBS THEY'RE GOING AFTER HIM THE WAY THEY WENT AFTER NIXON THESE ARE THE DOMINANT IMPRESSIONS GATHERED IN A YEARLONG EFFORT TO FOCUS NOT ON WASHINGTON THE PRODUCER OF POLITICS BUT ON THE CONSUMERS OF POLITICS THE OUTSIDETHEBELTWAY MAIN STREET SHOPPINGMALL AMERICA THAT WASHINGTON ASSIDUOUSLY COURTS DURING POLITICAL CAMPAIGNS BUT TOO OFTEN PATRONIZES DURING THE YEARS IN BETWEEN AS VIEWED FROM WASHINGTON THIS IS THE OUTER AMERICA TAKEN ON ITS OWN TERMS HOWEVER IT AMOUNTS TO A SEPARATE POLITICAL SUBCULTURE AS LEGITIMATE AS WASHINGTON'S THE QUESTION ISN'T SIMPLY HOW THE NEW PRESIDENT PLAYED IN PEORIA RATHER IT IS HOW OR WHETHER HE HAS AFFECTED THE HOPES AND THE FEARS AND THE LIVES OF PEORIANS AND OTHER RESIDENTS OF ILLINOIS THE CLASSIC POLITICAL SWING STATE AND A MICROCOSM OF THE NATION THESE PEOPLE VIEW POLITICS IN A STARKLY DIFFERENT WAY THAN DOES THE WASHINGTON POLITICAL COMMUNITY THAT CLAIMS TO SPEAK FOR THEM ORDINARY PEOPLE THINK IN TERMS OF PROBLEMS TO BE SOLVED WASHINGTON THINKS IN TERMS OF ISSUES TO BE SHARPENED THEY THINK IN TERMS OF POLITICAL OUTCOMES WASHINGTON THINKS IN TERMS OF PROCESS THE PEOPLE KNOW BUT A FRACTION OF WHAT WASHINGTON KNOWS ABOUT THE GREAT GAME OF POLITICS BUT THEN IT IS THIS VERY CONCEPTION POLITICS AS A GAME THAT ALIENATES THEM MOST IT'S JUST OUT THERE SHRUGGED MARGE RYAN 50 WHEN ASKED LAST SPRING WHETHER SHE COULD IMAGINE POLITICAL WASHINGTON AS A FORCE FOR GOOD JUST OUT THERE LIKE A DRONING TELEVISION SET IN ANOTHER ROOM HER COMMENT SUGGESTED THE FIRST AND IN A SENSE THE MOST FUNDAMENTAL POLITICAL CHALLENGE FACING MR CLINTON THERE WAS A DISCONNECTION BETWEEN WASHINGTON AND THE PEOPLE COULD HE GIVE ORDINARY VOTERS A SENSE THAT WASHINGTON COULD BE A POSITIVE FORCE IN THEIR LIVES HE HAS MADE A BEGINNING MS RYAN FOR ONE WOULD VOTE FOR BILL CLINTON TODAY ALTHOUGH SHE VOTED FOR ROSS PEROT LAST YEAR HER REASONS REST BOTH ON SPECIFICS THAT MAKE A PERSONAL DIFFERENCE TO HER PARTICULARLY PASSAGE OF THE BRADY LAW WITH ITS WAITING PERIOD FOR HANDGUN PURCHASES AND ON A GENERALIZED PERCEPTION THAT MR CLINTON IS SOMETHING RARE UNDER THE POLITICAL SUN A DOER ANOTHER CONVERT IS MARVIN ALDERSON 73 A SEMIRETIRED FARMER OUTSIDE VANDALIA WHO VOTED FOR GEORGE BUSH THERE IS SOMETHING DIFFERENT ABOUT THIS DEMOCRAT HE SAYS HE'S REALLY SURPRISED ME I THINK HE'S WILLING TO LOOK AT BOTH SIDES IF MR ALDERSON HAS A CRITICISM IT IS OF CONGRESS FOR NOT GIVING HIM THE POWER HE NEEDS TO FOLLOW UP ON HIS IDEAS BUT THE PEOPLE HAVE ANOTHER TEST ONE FAR MORE DIFFICULT FOR THIS PRESIDENT THEY WANT TO FEEL SECURE AGAIN BY THIS MEASURE HE HASN'T FAILED BUT HE CLEARLY HASN'T YET SUCCEEDED MR CLINTON CARRIED THIS STATE WITH NEARLY 49 OF THE VOTE BUT VOTERS WEREN'T SO MUCH VOTING FOR HIM AS AGAINST A PITOFTHESTOMACH UNEASINESS THEY SENSED THE NATION WAS ADRIFT AT ONE OF THOSE MOMENTS IN HISTORY WHEN REALITY ITSELF SEEMS TO SHIFT LIKE A KALEIDOSCOPE THEY COULD FEEL THE CHANGE IN THEIR OWN LIVES WHITECOLLAR JOBS HAD JOINED BLUECOLLAR JOBS BOTH AT RISK IN A BRUTALLY COMPETITIVE GLOBAL ECONOMY STREET CRIME WAS RAMPANT THE SCHOOLS WEREN'T WORKING THE FAMILY ITSELF WAS UNDER SIEGE THEY WERE ANXIOUS PEOPLE THEY STILL ARE THAT ANXIETY REMAINS PALPABLE IN THE SUBURBS WHOSE RAPIDLY GROWING VOTE MAKES THEM THE KEY TO THE FUTURE OF AMERICAN POLITICS IF THE ECONOMY IS SO WONDERFUL LIKE THEY SAY IT IS WHY ARE WE LAYING OFF SO MANY PEOPLE DEMANDS CATHY ZARRING A 43YEAROLD RESIDENT OF SCHAUMBERG AS I TELL MY HUSBAND THE ONLY THING THAT STANDS BETWEEN YOU AND THE STREET PEOPLE IS YOUR JOB MRS ZARRING WHO HAS BATTLED MULTIPLE SCLEROSIS FOR A DECADE AND A HALF RELUCTANTLY VOTED FOR MR CLINTON ONE REASON WAS HIS PROMISE OF HEALTHCARE REFORM SHE HAS SINCE WRITTEN HIM THREE LETTERS ABOUT IT BUT A BROADER REASON WAS A SENSE THAT THE COUNTRY WAS GOING NOWHERE UNDER GEORGE BUSH NOW SHE HAS GROWN WARY OF HEALTH REFORM EVERYTHING THE GOVERNMENT GETS INVOLVED IN GETS WORSE THAN BEFORE AND HAS ABOUT GIVEN UP ON MR CLINTON TOO HE MAKES GOOD SPEECHES BUT HE HASN'T DONE ANYTHING AS FOR THE SCANDAL ALLEGATIONS THE PEPPERY MRS ZARRING IS SUCCINCT GIVE THE GUY A BREAK WHO CARES WHAT HE DID UMPTEEN YEARS AGO WHAT MATTERS IS NOW ALAN ANKER 25 WEARING THE STRIPED REFEREE SHIRT THAT MARKS HIM AS THE MANAGER OF A SUBURBAN FOOT LOCKER STORE HAS COME TO A SIMILAR CONCLUSION IT'S NOT THAT HE'S DONE ANYTHING WRONG HE HASN'T DONE ANYTHING TOO GOSHAWFUL RIGHT IN THE SPRING STILL HOPEFUL MR ANKER COMPARED MR CLINTON TO A 250 BASEBALL HITTER NOT A POWER HITTER MAYBE BUT STILL WARMING UP BY THIS MONTH THE BATTING AVERAGE HAD PLUNGED TO 175 ON CHICAGO'S HEAVILY BLACK SOUTH SIDE ASSESSMENTS OF MR CLINTON APPEAR MORE UPBEAT THIS MIGHT SEEM PARADOXICAL FOR A DOWNATTHEHEELS AREA WHERE UNEMPLOYED MEN GATHER IN DEPRESSING LITTLE KNOTS ON THE SIDEWALKS BUT THE THINGS THAT SUBURBIA FEARS HAVE ALREADY HAPPENED HERE PERHAPS THERE IS A SENSE THAT MATTERS CAN HARDLY GET MUCH WORSE CERTAINLY THERE IS A GUT FEELING THAT IN DEMOCRAT BILL CLINTON THESE VOTERS HAVE THEIR FIRST FRIEND IN THE WHITE HOUSE FOR A LONG TIME A NICE EASYGOING FELLA HE TRIES SAYS CHARLES JONES 59 A CHICAGO MUNICIPAL WORKER CLINTON IS A PEOPLE'S PEOPLE DECLARES ALBERT ELLZEY A 48YEAROLD HOUSE PAINTER HE CARES MORE ABOUT PEOPLE THAN ANYBODY SINCE THE PEANUT MAN JIMMY CARTER CONCLUDES DONNA LOCKETTWILLIAMS 45 A SPECIALEDUCATION TEACHER BUT ANXIETY RETURNS WITH A VIRULENCE IN THE FACTORY TOWN OF EAST PEORIA AND MORE THAN ANXIETY RAW ANGER EAST PEORIA IS THE SITE OF A BITTER GRINDING CONTRACT DISPUTE BETWEEN THE UNITED AUTO WORKERS AND CATERPILLAR INC THE FIGHT HAS ENTERED ITS THIRD YEAR NOW ONE OF THE CLASSIC LABORMANAGEMENT CONFRONTATIONS OF RECENT DECADES THE WORKERS HAVE BEEN BEATEN DOWN CATERPILLAR BROKE THEIR STRIKE AND FORCED THEM BACK TO WORK UNDER ITS LAST OFFER BUT THEY HAVEN'T GIVEN UP THE STRIKE SHEDS PORTABLE SHELTERS STILL LINE THE PARKING LOT OF UAW LOCAL 974 POLITICS IS ALMOST TRIBAL IN EAST PEORIA WITH THE RAW YOU'REWITHUSORYOU'REAGAINSTUS QUALITY OF PICKET LINES ON THE NORTH AMERICAN FREE TRADE AGREEMENT THE WORKERS FOUND MR CLINTON AGAINST THEM HE LET BIG BUSINESS SUCKER HIM IN SAYS LARRY BULLOCK A 40YEAROLD UAW ACTIVIST NEVERTHELESS MR BULLOCK IS STICKING WITH MR CLINTON FOR NOW FOR OTHERS THOUGH THE WOUNDS MAY NEVER HEAL I FEEL VERY BETRAYED SAYS GAYLA SILOTTO A 40YEAROLD UAW WIFE BETRAYED IN A PERSONAL WAY MRS SILOTTO HAS PUT HERSELF ON THE LINE SHE WAS ARRESTED HANDCUFFED AND PUT INTO A PADDY WAGON DURING AN ANTICATERPILLAR DEMONSTRATION FOR A TIME SHE BELIEVED BILL CLINTON HAD PUT HIMSELF ON THE LINE TOO LAST YEAR CANDIDATE CLINTON WALKED THE PICKET LINE WITH UAW WORKERS HE VISITED CORPORATE HEADQUARTERS TOO AND MRS SILOTTO WAS SO MOVED THAT SHE INVITED HIM IN A HANDWRITTEN LETTER TO VISIT HER AND HER HUSBAND JERRY SHOULD HE COME BACK BUT MR CLINTON HASN'T COME BACK NOR HAS HE INTERVENED AND SO IN EARLY DECEMBER WITH MR CLINTON'S NAFTA VICTORY LIKE ADDITIONAL GALL IN HER MOUTH MRS SILOTTO WROTE HIM ANOTHER LETTER WITHDRAWING HER INVITATION I AM SURE SHE WROTE THERE IS A FAMILY IN MEXICO THAT WOULD BE GLAD TO ACCOMMODATE YOU AND SO MR CLINTON'S FIRST YEAR DRAWS TO A CLOSE AS SEEN FROM LIVING ROOMS AND STREET CORNERS OF ILLINOIS THE NATION IS IN THE MIDST OF SOME GREAT TURNING A CHANGE OF COURSE IN A WORLD WHOSE FAMILIAR LANDMARKS HAVE VANISHED PEOPLE HERE ARE WELL AWARE OF THE OUTER WORLD HAPPY THAT THE COLD WAR SEEMS TO BE OVER CONCERNED ABOUT THE ECONOMIC POWER OF JAPAN BUT THEIR FOCUS AS ALWAYS IS PERSONAL THEIR FAMILIES THEIR NEIGHBORHOODS THEIR JOBS THEIR FUTURES SOME SEE THE NEW PRESIDENT AS A GOOD MAN FOR A TIME OF TRANSITION HE SEEMS YOUNG NOT JUST AGEWISE BUT IN HIS ATTITUDE FRESH SAYS LISA WHEELER 34 A SPECIALIST IN EARLY CHILDHOOD EDUCATION OTHERS END THE YEAR AS THEY BEGAN IT ADAMANTLY OPPOSED HE SAYS A LOT OF THINGS HE DOESN'T MEAN AND DOESN'T FOLLOW UP ON SAYS SANDY JOHNSON A BUILDING CONTRACTOR IN JOLIET THE ONLY WAY I'D VOTE FOR HIM IS IF THEY'D PROMISE TO IMPEACH HIM FOR MS JOHNSON THE LATEST SCANDAL ALLEGATIONS ARE CONFUSINGWHO KNOWS IF THEY'RE TRUE OR NOTBUT TEND TO REINFORCE HER PERCEPTION THAT MR CLINTON IS A CORNERCUTTING SIXTIES AND '70S PERSONALITY AND AN UNUSUALLY LARGE NUMBER SEEM STILL VERY MUCH IN TRANSITION ONE IS VIRGINIA POWELL A UAW WORKER FOR CATERPILLAR ASKED LATE LAST SPRING FOR HER EVALUATION OF THE PRESIDENT MRS POWELL PROMPTLY ASKED FOR A RECENT PHOTOGRAPH OF HIM FOR MOST PEOPLE SHE EXPLAINED EACH HALF OF THE FACE REVEALS A DIFFERENT ASPECT OF PERSONALITY APPLYING THIS TEST TO MR CLINTON SHE FIRST LOOKED AT THE RIGHT HALF OF HIS FACE IN ISOLATION THEN THE LEFT BUT WHEN MRS POWELL REAPPLIED HER TEST USING FRESH PHOTOGRAPHS LATE IN THE YEAR THE PRESIDENT HAD MADE PROGRESS OF A SORT HE HAD PROGRESSED FROM FEAR AND UNCERTAINTY TO STRENGTH AND ARROGANCE WHAT HIS FACE NOW SAYS TO HER IS YOU BETTER SHUT YOUR MOUTH THIS IS THE WAY IT'S GOING TO BE PEOPLE SENSE AT YEAR'S END A CHANGING UNFINISHED QUALITY ABOUT THEIR NEW PRESIDENT YOU CAN'T FIGURE OUT WHAT HE'S TRYING TO DO SAYS LOUIE KOCSIS A 26YEAROLD MECHANICAL ENGINEER HE'S TRYING TO DO EVERYTHING AND IN VANDALIA CLINTON VOTER DAVID HARRISON A COSMETOLOGIST PUTS IT THIS WAY WE WANTED CHANGE AND BY GOLLY WE GOT IT BUT I'M NOT SURE IF THE CHANGE WE'RE GETTING IS THE CHANGE WE WANT IT WAS IN VANDALIA AS MUCH AS ANYWHERE THAT CANDIDATE CLINTON SOUNDED THE ISSUE THAT WON HIM THE ELECTION AND LAID OUT THE STANDARD AGAINST WHICH HE WOULD BE JUDGED HE WAS SPEAKING AT THE OLD STATEHOUSE THE CREAKYFLOORED FIRST CAPITOL OF ILLINOIS WHERE A STATE LEGISLATOR NAMED ABRAHAM LINCOLN SEEMS TO HAVE BEEN WORKING AT HIS DESK ONLY YESTERDAY TO A RALLY OF 10000 MR CLINTON PROMISED TO BE YOUR INSTRUMENT TO CHANGE THIS COUNTRY THAT ULTIMATELY IS THE STANDARD TO WHICH THE OUTER AMERICA WILL HOLD HIM CAN HE ACHIEVE NOT ONLY CHANGE BUT CHANGE THAT TOUCHES ORDINARY LIVES IN POSITIVE WAYS CAN HE SATISFY THAT MOST HUMAN OF NEEDS THE NEED TO BELIEVE THAT TOMORROW WILL BE BETTER THAN TODAY AFTER ONE YEAR THE JUDGMENT REMAINS PROVISIONAL HE HAS MADE A START BUT ONLY THAT HE RETAINS HIS LICENSE TO TRY NO MORE BUT NO LESS GIVE THE MAN A CHANCE ARGUES CHERYL MISON THE REPUBLICAN WHO VOTED FOR HIM AFTER FOUR YEARS WE CAN ALWAYS WAVE GOODBYE 9312300066 931230 MEDICINE CANCER GENE IS PINPOINTED IN THE HEALTHY BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS USING A NEW TEST TO DETECT A GENE THAT WAS RECENTLY IDENTIFIED AS CAUSING CANCER WERE ABLE TO PINPOINT HEALTHY PERSONS WHO ARE ALMOST CERTAIN TO DEVELOP COLON CANCER THE TEST USING A SMALL SAMPLE OF BLOOD CELLS IS EXPECTED TO BE A MODEL FOR OTHER SIMPLE TESTS TO DETECT MANY OF THE GENES THAT HAVE BEEN FOUND IN RECENT YEARS TO TRIGGER CANCER SCIENTISTS FAMILIAR WITH THE NEW TEST SAID IT REPRESENTED A SIGNIFICANT ADVANCE SINCE IT SHOWED THAT RESEARCHERS WILL BE ABLE TO MAKE PRACTICAL USE OF THE RECENT FLOOD OF BASIC DISCOVERIES INVOLVING CANCER GENES WHAT'S EXCITING FOR US IS THIS SHOWS THE INCREDIBLE POWER OF RECOMBINANT DNA TECHNOLOGY NOT JUST FOR BASIC RESEARCH BUT TO HELP DOCTORS HELP PATIENTS SAID BERT VOGELSTEIN A LEADING CANCER GENE RESEARCHER WHOSE LABORATORY AT JOHNS HOPKINS UNIVERSITY SCHOOL OF MEDICINE IN BALTIMORE REPORTED THE SUCCESS OF THE NEW TEST IN A STUDY REPORTED IN TODAY'S ISSUE OF THE NEW ENGLAND JOURNAL OF MEDICINE THE HOPKINS RESEARCH TEAM USED THE NEW TEST TO DETECT A CANCER GENE IN 87 OF 62 PATIENTS SUSPECTED OF HARBORING THE GENE THOSE FOUND TO HARBOR THE GENE ARE AT EXTREMELY HIGH RISK OF DEVELOPING COLON CANCER BASED ON THE FINDINGS THE HOPKINS RESEARCHERS WERE ABLE TO TELL THOSE WHO HAD THE GENE THAT THEY NEEDED TO UNDERGO PERIODIC DIAGNOSTIC TESTS TO CLOSELY MONITOR THEIR COLONS IN ORDER TO CATCH AND TREAT THEIR DISEASE AT A STAGE WHEN IT IS MOST EASILY CURED THE PEOPLE TESTED IN THE NEW STUDY ALL KNEW THEY WERE AT HIGH PERIL OF DEVELOPING COLON CANCER BECAUSE THEY HAD CLOSE RELATIVES WHO ALREADY WERE STRUCK BY A RARE FORM OF AN INHERITED DISEASE KNOWN AS FAMILIAL ADENOMATOUS POLYPOSIS OR FAP IN WHICH THOUSANDS OF TINY GROWTHS OR POLYPS DEVELOP IN THE COLON OFTEN IN ADOLESCENCE ALTHOUGH INITIALLY NONMALIGNANT THERE IS A HIGH RISK THAT SOME OF THE POLYPS WILL EVENTUALLY BECOME CANCEROUS AN ESTIMATED 50000 AMERICANS ARE BELIEVED TO HAVE FAP AND THESE PEOPLE ARE THOUGHT TO ACCOUNT FOR ABOUT 1 OF THE 150000 NEW CASES OF COLON CANCER THAT OCCUR EACH YEAR AMONG AMERICANS ABOUT TWO YEARS AGO RESEARCHERS AT HOPKINS AND ELSEWHERE FOUND THAT FAP ARISES WHEN PEOPLE ARE BORN WITH A DEFECT IN A PARTICULAR GENE KNOWN AS APC IN ITS HEALTHY FORM THIS GENE PRODUCES A PROTEIN THAT HELPS CONTROL THE LIFECYCLE OF COLON CELLS WHEN THE APC GENE IS DEFECTIVE CELLS NORMALLY UNDER CONTROL GROW PROMISCUOUSLY INTO THE SMALL MUSHROOMSHAPED POLYPS WHEN THE GENE WAS FIRST FOUND SCIENTISTS PREDICTED THEY SOON WOULD BE ABLE TO IDENTIFY WHICH RELATIVES IN FAP FAMILIES HAD INHERITED THE GENE AND WOULD EVENTUALLY DEVELOP CANCER BUT THE SCIENTISTS' INITIAL EXCITEMENT WAS MUTED WHEN THEY FOUND THAT THE DISEASE CAN RESULT FROM ANY ONE OF DOZENS OF TINY DEFECTS TO THE GENE AND BECAUSE THE GENE WAS SO BIG ONE OF THE LARGEST EVER DISCOVERED A TEST THAT SEARCHED THE ENTIRE LENGTH OF THE GENE FOR A SINGLE MUTATION WAS IMPRACTICAL IN THE NEW STUDY LED BY KENNETH KINZLER THE HOPKINS GROUP SAID THE PROBLEM WAS SOLVED WHEN IT WAS FOUND THAT EACH OF THE DEFECTS NO MATTER WHERE IT OCCURRED IN THE GENE CAUSED THE GENE TO PRODUCE A PROTEIN MUCH SHORTER THAN NORMAL IN THE NEW TEST SCIENTISTS STIMULATE THE GENE IN THE TEST TUBE TO MAKE THE PROTEIN THE LENGTH OF WHICH CAN THEN BE MEASURED TO SEE IF IT IS ABNORMALLY SHORT THE TECHNOLOGY OF GOING FROM GENE TO PROTEIN IS QUITE SIMPLE THESE DAYS DR VOGELSTEIN SAYS NOTING THAT THE REQUIRED MATERIALS AND METHODS ARE SOLD IN COMMERCIAL KITS BY SEVERAL COMPANIES THAT CAN BE USED BY MEDICAL LABORATORIES DR VOGELSTEIN'S HOPKINS LAB HAS HELPED IDENTIFY FIVE SEPARATE GENES SINCE 1990 THAT WHEN DEFECTIVE ARE INVOLVED IN THE DEVELOPMENT OF COLON CANCER HIS LAB IS ATTEMPTING TO DEVELOP SCREENING TESTS FOR ALL THE GENES IN THE NEW STUDY ALL 62 PATIENTS WERE EVENTUALLY FOUND TO HAVE THE DEFECTIVE CANCERCAUSING GENE ALTHOUGH ONLY IN 54 OF THE PATIENTS COULD THE NEW PROTEINLENGTH TEST EASILY IDENTIFY THE PRESENCE OF THE DEFECTIVE GENE THE OTHER FAP PERSONS REQUIRED MORE COMPLICATED GENESEARCHING TECHNIQUES TO SPOT THE DEFECTIVE GENE SCIENTISTS SAID THE TEST WILL BE ESPECIALLY HELPFUL IN ALERTING PEOPLE WITH A HIGH RATE OF POLYP GROWTH BUT MAY NOT KNOW THEY ARE AT HIGH RISK OF COLON CANCER BECAUSE THEY LACK A FAMILY HISTORY OF FAP ABOUT ONETHIRD OF PEOPLE WITH FAP HAVEN'T ANY FAMILY HISTORY OF THE DISEASE BUT SEEM TO HAVE SUFFERED A SPONTANEOUS MUTATION OF THE GENE DURING THE EARLY WEEKS FOLLOWING CONCEPTION MOREOVER THE SCIENTISTS SAID THEY EXPECTED THE TEST TO BE USED BY SOME FAMILY MEMBERS WHO WANT TO TEST PRENATALLY FOR THE GENE'S PRESENCE IN DEVELOPING FETUSES THE SCIENTISTS ALSO ARE HOPEFUL THAT PEOPLE IDENTIFIED AS BEING AT RISK CAN CONTROL POLYP GROWTH BY TAKING A DRUG CALLED SULINDAC THAT LONG HAS BEEN USED TO TREAT ARTHRITIS IN RECENT PRELIMINARY STUDIES THE DRUG SOLD COMMERCIALLY AS CLINORIL BY MERCK & CO HAS BEEN SHOWN TO SHRINK OR ELIMINATE POLYPS IN FAP PATIENTS ANOTHER STUDY RELEASED IN THE SAME ISSUE OF THE NEW ENGLAND JOURNAL OF MEDICINE SUGGESTS STILL ANOTHER VALUE FOR IDENTIFYING THE CANCER RISK EARLY ON IN THE STUDY FUNDED WITH FEDERAL MONEY RESEARCHERS LED BY DOCTORS AT MEMORIALSLOAN KETTERING CANCER CENTER IN NEW YORK FOUND THAT IDENTIFYING AND REMOVING NONCANCEROUS POLYPS CAN SHARPLY REDUCE THE RISK OF DEVELOPING CANCER WHILE DOCTORS LONG HAVE SUSPECTED THAT EXCISING ALL POLYPS CAN PREVENT CANCER THE NEW STUDY INVOLVING 1418 PATIENTS PROVIDES CONVINCING EVIDENCE THAT POLYPS OUGHT TO BE REMOVED IN AN EDITORIAL ACCOMPANYING THE TWO STUDIES EDISON LIU OF THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL SAID THE NEW RESEARCH PROVIDES A GLIMPSE AT THE STRUCTURE OF CANCERCONTROL PROGRAMS OF THE FUTURE THE NEXT CHALLENGE DR LIU SAID WAS FOR PHYSICIANS POLITICIANS AND THE PUBLIC TO ARRIVE AT A CONSENSUS ON THE ORGANIZATION OF A CANCERSCREENING PROGRAM THAT MAY INCLUDE GENETIC TESTING 9312300065 931230 PEPPERAND SALT OR COLLEGE FINANCIAL AID CONSIDERING THE COST OF TUITION ROOM BOARD CLOTHING AND BOOKS MORE THAN EVER BEFORE A STUDENT HAS TO BE VERY CAREFUL IN HIS SELECTION OF PARENTS 9312300064 931230 CORRECTIONS & AMPLIFICATIONS CONSUMER SPENDING ROSE AN INFLATIONADJUSTED 03 IN NOVEMBER AN ARTICLE MONDAY INCORRECTLY SAID SPENDING DECLINED 03 CITICORP'S DELAWARE BANKING UNIT WILL RECEIVE CHECK INFORMATION SENT ELECTRONICALLY FROM CORESTATES FINANCIAL CORP ONCE A FEDERAL RESERVE BOARD RULE TAKES EFFECT IN JANUARY AN ARTICLE YESTERDAY WASN'T CLEAR ON WHICH BANK WAS RECEIVING THE DATA 9312300063 931230 REVIEW & OUTLOOK EDITORIAL A DREXEL POSTSCRIPT IT PASSED ALMOST UNNOTICED BUT LAST SEPTEMBER US DISTRICT JUDGE MILTON POLLACK GAVE FINAL BLESSING TO A GLOBAL SETTLEMENT RELEASING SOME 300 FORMER EMPLOYEES OF DREXEL BURNHAM LAMBERT FROM BONDAGE TO THE LEGAL SYSTEM MOST OF THESE SMALL AND BIG FRY YIELDED UP THEIR POUND OF FLESH IT'S SAFE TO SUPPOSE IN ORDER TO GET ON WITH THEIR LIVES THERE WAS ONE WHO DIDN'T INSISTING INSTEAD THAT THE GOVERNMENT AND OTHER CLAIMANTS ACTUALLY PROVE THEIR CASE IN COURT G CHRIS ANDERSEN FORMER MANAGING DIRECTOR OF CORPORATE FINANCE AT DREXEL AND NOW VICE CHAIRMAN OF PAINE WEBBER SAYS HE DIDN'T CARE TO BE CALLED A LIAR A THIEF AND A CROOK SO HE WAVED OFF THE GLOBAL SETTLEMENT AND ITS OFFER OF IMMUNITY FROM FURTHER LAWSUITS THIS OBSTREPEROUSNESS DID NOT ENDEAR HIM TO JUDGE POLLACK THE 87YEAROLD JURIST WHO TEARFULLY DECLARED THE GLOBAL SETTLEMENT MY LIFETIME MASTERPIECE FROM A PRACTICAL PERSPECTIVE THE JUDGE'S HANDIWORK DID INDEED RID THE COURTS OF AN INCREDIBLE MORASS OF LITIGATION THOUGH IN THE PROCESS ELEMENTARY NOTIONS OF JUSTICE WERE NOT DISPLAYED TO THEIR BEST ADVANTAGE AS MR ANDERSEN'S ADVENTURES SHOW THE GOVERNMENT AND OTHER CLAIMANTS ENDED UP SETTLING HIS CASE FOR 10 OF THEIR INITIAL CLAIMS AND 1 OF THEIR MAXIMUM THREATS FACED WITH A TRIAL THAT IS THE PLAINTIFFS SETTLED FOR A TOKEN MUSCLING THEIR WAY TO THE HEAD OF THE LINE WERE THE FDIC AND RTC THE FEDERAL THRIFT REGULATORS WERE CLAIMING THE BIGGEST CHUNK OF THE DREXEL ESTATE ON THE LUDICROUS GROUNDS THAT JUNK BONDS WERE THE ROOT CAUSE OF THE S&L DEBACLE HERE AFTER ALL WAS AN OPPORTUNITY TO BASH SOMEBODY ELSE AND DISTRACT ATTENTION FROM THE S&L EGG ON WASHINGTON'S OWN FACE SO CONTRARY TO THEIR NORMAL PRACTICE OF PUTTING LEGAL BUSINESS OUT FOR COMPETITIVE BID THE REGULATORS HIRED THE GLAMOROUS NEW YORK FIRM OF CRAVATH SWAINE & MOORE ON A CONTINGENCYFEE BASIS GIVING THE LEGAL TERRIERS AN INCENTIVE TO PURSUE A MAXIMAL EXTRACTION FROM DREXEL PERSONNEL WHATEVER THE MERITS OF THE CLAIM MR ANDERSEN HAS NEVER BEEN NAMED AS A DEFENDANT IN ANY OF THE 185 LAWSUITS ALLEGING EVIL AT DREXEL BY HIS OWN ACCOUNT THOUGH HE WAS CALLED UPON TO PONY UP MORE THAN 2 MILLION AS HIS CONTRIBUTION TO THE GLOBAL SETTLEMENT WHEN HE REFUSED THE FIRST INVITATION THE FIGURE MYSTERIOUSLY GREW TO 45 MILLION WHEN HE REFUSED AGAIN THE GOVERNMENT AND OTHER CREDITORS THREATENED TO SUE HIM PERSONALLY FOR 24 MILLION AND BRING CRIMINAL CHARGES HE ALSO DESCRIBES HEAVYHANDED TACTICS BY HIS LEGAL OPPONENTS WHO MADE HIM WAIT UNTIL FOUR WEEKS BEFORE THE TRIAL BEFORE HONORING HIS DOCUMENT REQUEST THEN DUMPING 150 FILE DRAWERS ON HIM THE COPYING BILL FOR A SINGLE DAY HE SAYS CAME TO 50000 THE CASE AGAINST HIM AND OTHER DREXEL EMPLOYEES ORIGINALLY RESTED ON THE IDEA THAT THEIR 1989 BONUSES WERE AN ILLEGAL LOOTING OF THE TILL SINCE SUPPOSEDLY IT WAS ALREADY EVIDENT THAT THE FIRM WAS DOOMED THIS DESPITE THE CLEAR EVIDENCE NOW THAT THE FIRM WAS NEVER INSOLVENT IN ADDITION THE EMPLOYEES WERE THREATENED WITH SEIZURE OF THE DREXELMANAGED TRUSTS IN WHICH MANY HAD SOCKED AWAY THEIR BONUSES FROM YEARS PAST THESE TRUSTS WERE ALSO SAID TO REPRESENT A RIPOFF OF THE FIRM THIS OPENENDED THREAT AGAINST THEIR NET WORTH AND THE PROSPECT OF SPENDING A LIFETIME IN COURT HERDED MOST OF THESE FOLKS INTO THE GLOBAL SETTLEMENT AMONG THE LAW FIRMS DEVELOPING AND PURSUING THESE CLAIMS WAS WEIL GOTSCHAL & MANGES WHICH HAD SERVED DREXEL IN HAPPIER TIMES AND NOW REPRESENTED THE BANKRUPTED HULK IN SUING ITS FORMER EMPLOYEES BUT IN DIGGING THROUGH THE 150 FILE DRAWERS MR ANDERSEN'S LAWYERS UNEARTHED A 26PAGE WEIL GOTSCHAL LEGAL ANALYSIS EXPLAINING EXACTLY WHY THE BONUS PAYMENTS WERE ON THE UP AND UP ONE GLIMPSE OF THIS DOCUMENT APPARENTLY WAS ENOUGH TO PERSUADE THE GOVERNMENT AND OTHER CREDITORS TO DROP THEIR CLAIM AGAINST MR ANDERSEN IN EXCHANGE FOR A FACESAVING PAYMENT IN OCTOBER THE PLAINTIFFS INVITED HIM TO SETTLE FOR AN EFFECTIVE PAYMENT OF 220000 SINCE THIS WAS PEANUTS COMPARED WITH THE 1 MILLION HE'D ALREADY SPENT ON LEGAL FEES MR ANDERSEN AGREED UNDER THE CIRCUMSTANCES HE WON AS UNAMBIGUOUS A VICTORY AS THESE CASES ALLOW MR ANDERSEN'S CASE DOES NOT REPRESENT A FINAL VERDICT ON THE JUNK BOND ERA BUT NOTABLY THE LEGAL FALLOUT FROM THE DREXEL IMPLOSION HAS CONSISTED ENTIRELY OF PLEA BARGAINS AND NEGOTIATED SETTLEMENTS WHATEVER YOU THINK OF THE MILKEN ERA ONCE IN THE COURTROOM THE GOVERNMENT HAS UNEQUAL LEVERAGE BECAUSE IT CAN EMBROIL ANYBODY IN FINANCIALLY RUINOUS LITIGATION UNTIL THE COWS COME HOME MR ANDERSEN LANDED ON HIS FEET AFTER THE DREXEL BANKRUPTCY MANY OF THE OTHER DEFENDANTS LACKED BOTH HIS RESOURCES AND HIS WILLPOWER THAT LOTS OF PEOPLE HAVE BEEN INTIMIDATED INTO CUTTING DEALS TESTIFIES TO THE POLITICAL HEAT BEHIND THE PROSECUTIONS AND CIVIL LAWSUITS BUT DESPITE THE FORTUNES THAT HAVE BEEN DAMAGED AND SCORES SETTLED NOT MUCH LIGHT HAS BEEN SHED BY THESE PROCEEDINGS IT REMAINS FOR SOME DISPASSIONATE HISTORIAN TO JUDGE WHETHER REAL CRIMES OR MERELY POLITICAL ONES WERE RESPONSIBLE FOR THE DESTRUCTION OF OUR ERA'S MOST INVENTIVE WALL STREET FIRM 9312300062 931230 BUSINESS BRIEF NISSAN MOTOR CORP PRICES ON '94 MODELS IN US INCREASE STRONG YEN CITED NISSAN MOTOR CORP FOLLOWING THE LEAD OF RIVAL TOYOTA MOTOR CORP RAISED PRICES ON ITS 1994 US MODELS SIGNALING THAT MORE PRICE INCREASES MAY FOLLOW FROM OTHER JAPANESE AUTO MAKERS AS THEY CONTINUE TO COPE WITH THE STRONG YEN AND A SEVERE RECESSION AT HOME THE AUTO MAKER SAID ITS LATEST INCREASES WOULD BECOME EFFECTIVE MONDAY AND WOULD AVERAGE 321 OR 2 ON A SALESWEIGHTED BASIS LIKE TOYOTA NISSAN BLAMED ITS FIFTH MAJOR PRICE RISE IN 12 MONTHS ON THE STRONG YEN WHICH HAS FORCED JAPANESE AUTO MAKERS TO MOVE MORE OF THEIR VEHICLE PRODUCTION OUT OF JAPAN AS THE YEN CONTINUES TO BOOST PRODUCTION COSTS IN THEIR HOME MARKET NISSAN NOW PRODUCES ABOUT 60 OF ITS VEHICLES IN THE US A COMPANY SPOKESMAN SAID THE INCREASES HAVE ALSO CREATED A SIGNIFICANT PRICE ADVANTAGE FOR VEHICLES PRODUCED BY DETROIT'S BIG THREE 9312300061 931230 US INVESTIGATES NORTHERN TRUST UNITS FOR POSSIBLE BIAS IN MORTGAGE LENDING BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT CONTINUING ITS NATIONWIDE INVESTIGATION OF POSSIBLE MORTGAGELENDING DISCRIMINATION HAS LAUNCHED A REVIEW OF LENDING PRACTICES AT FOUR UNITS OF NORTHERN TRUST CORP THE CHICAGO BANK ANNOUNCED THE INVESTIGATION AND THE JUSTICE DEPARTMENT CONFIRMED IT WITHOUT GIVING ANY DETAILS THE CIVIL INVESTIGATION IS STILL IN ITS PRELIMINARY STAGES DEPARTMENT OFFICIALS SAID WE'VE BEEN CONDUCTING INVESTIGATIONS AROUND THE COUNTRY OF BANKLENDING PRACTICES SAID PAUL HANCOCK CHIEF OF THE HOUSING SECTION IN THE DEPARTMENT'S CIVIL RIGHTS DIVISION THE CLINTON ADMINISTRATION HAS LAUNCHED A MAJOR EFFORT TO ROOT OUT LENDING DISCRIMINATION AS PART OF ITS ATTEMPT TO MAKE CREDIT MORE AVAILABLE TO LOWINCOME AND MINORITY BORROWERS NORTHERN SAID ITS BELIEVES ITS BANKS HAVE A STRONG RECORD OF COMPLIANCE WITH THE LETTER AND THE SPIRIT OF THE FAIRLENDING LAWS THE COMPANY SAID IT HAS BEEN AND WILL REMAIN DEDICATED TO FULFILLING ITS RESPONSIBILITIES UNDER THE FAIRLENDING LAWS TO WHICH NORTHERN AND ITS PEOPLE ARE COMMITTED WE EXPECT THAT THE STRENGTH OF THAT COMMITMENT AND THE RESULTS WE ARE ACHIEVING WILL BECOME CLEAR IN THE COURSE OF THE DEPARTMENT'S REVIEW BUT A WALL STREET JOURNAL ANALYSIS OF MORTGAGE APPLICATIONS AT MORE THAN 9000 LENDING INSTITUTIONS IN 1992 FOUND THAT NORTHERN TRUST HAD THE THIRD HIGHEST DISPARITY BETWEEN BLACKS' AND WHITES' LOANREJECTION RATES THE STUDY FOUND THAT BLACKS WERE MORE THAN 11 TIMES AS LIKELY AS WHITES TO HAVE MORTGAGELOAN APPLICATIONS REJECTED AT NORTHERN TRUST NORTHERN TRUST FOUNDED IN 1889 AND KNOWN AS THE GRAY LADY OF LASALLE STREET FOR ITS CONSERVATIVE WAYS HAS LONG BEEN THE BANK OF CHOICE FOR MANY OF CHICAGO'S WEALTHIEST FAMILIES WITH THE EXCEPTION OF A BRIEF YET COSTLY DALLIANCE WITH PENN SQUARE BANK OF OKLAHOMA CITY IN THE EARLY 1980S IT HAS STUCK LARGELY TO ITS PERSONAL AND INSTITUTIONAL TRUST BUSINESSES WHICH ARE HIGHLY PROFITABLE NORTHERN TRUST HAD ASSETS OF ABOUT 16 BILLION AT THE END OF THE SECOND QUARTER BEGINNING IN 1984 NORTHERN AND OTHER BIG CHICAGO BANKS CAME UNDER ATTACK FROM LOCAL COMMUNITY GROUPS FOR NOT LENDING IN POORER NEIGHBORHOODS NORTHERN SAID YESTERDAY THAT IT IS TRYING HARD TO LEND TO MINORITIES THE BANK SAID IT HAS MORE THAN 30 PROGRAMS TARGETED TO AFFORDABLE SINGLEFAMILY HOME OWNERSHIP AND A NUMBER OF PROGRAMS DESIGNED TO HELP MINORITY APPLICANTS THROUGH THE APPLICATION PROCESS FROM 1991 TO 1992 THE NUMBER OF LOANS NORTHERN TRUST MADE TO MINORITIES THROUGH THESE AND OTHER PROGRAMS INCREASED 71 THE COMPANY SAID AND THE NUMBER OF APPLICATIONS INCREASED 67 NORTHERN SAID IT WILL ALSO SHOW SIGNIFICANT INCREASES IN 1993 THIS MONTH SHAWMUT NATIONAL CORP AGREED TO ESTABLISH A 960000 FUND TO COMPENSATE BLACK AND HISPANIC BORROWERS WHO WERE UNFAIRLY DENIED LOANS AND TO CONTINUE STEPS TO IMPROVE ITS LENDING RECORD TO MINORITIES LAST YEAR THE GOVERNMENT ALSO SETTLED LENDINGBIAS CHARGES AGAINST DECATUR FEDERAL SAVINGS & LOAN OF DECATUR GA THE GOVERNMENT ALSO HAS CHARGED BLACKPIPE STATE BANK IN MARTIN SD WITH DISCRIMINATING AGAINST AMERICAN INDIANS BARNETT BANKS INC OF JACKSONVILLE FLA ALSO HAS DISCLOSED THAT THE JUSTICE DEPARTMENT HAS LAUNCHED A PRELIMINARY INVESTIGATION OF ITS LENDING PRACTICES KENNETH THOMAS A COMMUNITYLENDING SPECIALIST SAYS THE GOVERNMENT IS TRYING TO BRING HIGHPROFILE CASES IN MAJOR BANKING MARKETS AROUND THE COUNTRY IN AN EFFORT TO FORCE BANKS TO CHANGE THEIR LENDING PRACTICES NORTHERN TRUST SAID THAT A SIGNIFICANT AMOUNT OF INFORMATION HAS BEEN REQUESTED BY THE JUSTICE DEPARTMENT AND THAT IT'S LIKELY TO TAKE SOME TIME FOR IT TO BE PRODUCED AND ASSIMILATED AND FOR THE RESULTS OF THIS PROCESS TO BECOME CLEAR OUR COOPERATION WILL INVOLVE A VERY SUBSTANTIAL EFFORT ON THE PART OF NORTHERN PEOPLE BUT NO COURSE OTHER THAN COMPLETE COOPERATION WOULD BE CONSISTENT WITH OUR ATTITUDE TOWARD THESE ISSUES THE COMPANY SAID THE UNITS UNDER REVIEW ARE NORTHERN TRUST CO NORTHERN TRUST BANK/DUPAGE NORTHERN TRUST BANK/LAKE FOREST NA AND NORTHERN TRUST BANK/O'HARE NA IN NASDAQ STOCK MARKET TRADING SHARES OF NORTHERN TRUST CLOSED AT 4075 DOWN 25 CENTS JEFF BAILEY IN CHICAGO CONTRIBUTED TO THIS ARTICLE 9312300060 931230 BUSINESS BRIEF UNION TEXAS PETROLEUM HOLDINGS INC DISCOVERY WELLS COMPLETED IN BADIN AREA OF PAKISTAN UNION TEXAS PETROLEUM HOLDINGS INC SAID IT COMPLETED THREE DISCOVERY WELLS IN THE BADIN AREA OF SOUTHEASTERN PAKISTAN THE OIL AND NATURAL GAS COMPANY IS THE OPERATOR FOR A JOINT VENTURE WITH OIL & GAS DEVELOPMENT CORP A PAKISTANI GOVERNMENTOWNED COMPANY AND OCCIDENTAL PETROLEUM CORP LOS ANGELES THE JALAL NO 1 WELL TESTED AT 129 MILLION CUBIC FEET OF NATURAL GAS A DAY ON A 36/64INCH CHOKE FROM A ZONE IN THE LOWER GORU FORMATION BETWEEN 5397 FEET AND 5410 FEET THE BACHAL NO 1 WELL WHICH UNION TEXAS SAID WILL EVENTUALLY PRODUCE GAS FLOWED AT A RATE OF 108 BARRELS OF OIL A DAY ON AN 8/64INCH CHOKE FROM A ZONE BETWEEN 4647 FEET AND 4650 FEET IN THE LOWER GORU FORMATION THE SOUTH MAZARI DEEP NO 1 WELL TESTED AT 475 BARRELS OF OIL A DAY ON A 24/64INCH CHOKE FROM A ZONE IN THE LOWER GORU FORMATION BETWEEN 5484 FEET AND 5494 FEET 9312300059 931230 BUSINESS BRIEF STIFEL FINANCIAL CORP ASSETMANAGEMENT CONCERN TODD INVESTMENT IS BOUGHT STIFEL FINANCIAL CORP ST LOUIS SAID IT ACQUIRED TODD INVESTMENT ADVISORS A LOUISVILLE KY CONCERN THAT HAS ABOUT 2 BILLION IN ASSETS UNDER MANAGEMENT TERMS WEREN'T DISCLOSED STIFEL'S CHAIRMAN GEORGE HERBERT WALKER III CHARACTERIZED THE PURCHASE AS A SIGNIFICANT EXPANSION OF OUR ASSETMANAGEMENT BUSINESS INTO THE INSTITUTIONAL MARKET TODD PROVIDES FIXEDINCOME EQUITY AND BALANCEDACCOUNT MANAGEMENT SERVICES PRIMARILY FOR INSTITUTIONAL AND PENSION CUSTOMERS IN THE MIDWEST AND THE SOUTHEAST STIFEL WHOSE BIGGEST UNIT IS ITS RETAILORIENTED 72OFFICE STIFEL NICOLAUS & CO BROKERAGE HOUSE SAID TODD WILL OPERATE AS A SEPARATE UNIT UNDER EXISTING MANAGEMENT STIFEL WHICH IN RECENT YEARS HAS BEEN EXPANDING ITS BROKERAGE UNIT'S SALES FORCE AND BOOSTING ITS INVESTMENTBANKING OPERATIONS HAS MORE THAN MADE IT CLEAR THAT IT WOULD LIKE TO ACQUIRE AN ASSETMANAGEMENT CONCERN 9312300057 931230 BUSINESS BRIEF DELTA AIR LINES INC US CARRIER FILES COMPLAINT AGAINST FRANKFURT AIRPORT DELTA AIR LINES INC SAID IT FILED A COMPLAINT WITH THE US TRANSPORTATION DEPARTMENT THAT CLAIMS THE GERMAN GOVERNMENT AND THE FRANKFURT AIRPORT ENGAGE IN UNFAIR PRACTICES AGAINST DELTA ATLANTABASED DELTA ALLEGED THAT IT HAS BEEN UNFAIRLY DENIED THE RIGHT TO EXTEND ITS OWN GROUNDHANDLING OPERATIONS TO ALL ITS FLIGHTS AT FRANKFURT VIOLATING A BILATERAL AVIATION AGREEMENT BETWEEN THE US AND GERMANY THE AIRLINE ALSO SAID AIRPORT AUTHORITIES IN FRANKFURT WHERE DELTA OPERATES A EUROPEAN HUB HAVE TRIED TO IMPOSE AN EXORBITANT AND UNJUST USER FEE ON DELTA FOR GROUND SERVICES IN THE US GERMAN AIRLINES CAN EITHER HANDLE THEIR OWN OPERATIONS OR CHOOSE FROM OTHERS OFFERING THE SERVICES DELTA SAID IN THE COMPLAINT 9312300056 931230 INTERNATIONAL BRIEF HANSON PLC UK CONGLOMERATE SELLS OFF 11 OF ITS SMALLER COMPANIES UK CONGLOMERATE HANSON PLC LONDON SAID IT SOLD 11 OF ITS SMALLER UK COMPANIES TO A NEW COMPANY BACKED BY ELECTRA PRIVATE EQUITY PARTNERS FOR 90 MILLION 136 MILLION THE NET ASSETS OF THE COMPANIES WILL BE 40 MILLION THEIR PROFITS FOR THE YEAR ENDED SEPT 30 1993 AMOUNTED TO 122 MILLION HANSON WILL BE PAID 8575 MILLION IN CASH AND 425 MILLION IN 7 UNSECURED LOAN STOCK HANSON CHIEF EXECUTIVE DEREK BONHAM SAID THAT THE SALE OF THESE COMPANIES REFLECTS HANSON'S STRATEGY OF CONCENTRATING ON ITS MAJOR BUSINESSES THE SALE IS MARGINALLY DILUTIVE BUT WILL CONTRIBUTE AN EXCEPTIONAL PROFIT OF ABOUT 45 MILLION POUNDS TO THE CURRENT YEAR IT WILL ALSO PLAY A PART IN OUR DEBTREDUCTION PROGRAM ELECTRA PARTNERS IS A 486 MILLION FUND MANAGED BY ELECTRA KINGSWAY SPECIALIZING IN UNQUOTED INVESTMENTS IN THE UK AND EUROPE 9312300055 931230 MARKET BRIEF TURNER BROADCASTING SYSTEM INC ABOUT 255 MILLION IS PAID FOR REST OF HB HOLDING CO TURNER BROADCASTING SYSTEM INC ATLANTA SAID IT PAID ABOUT 255 MILLION TO ACQUIRE THE REMAINING INTEREST IN HB HOLDING CO A JOINT VENTURE THAT OWNS THE HANNABARBERA ANIMATION LIBRARY TURNER HAS OWNED 50 OF HB HOLDING CO SINCE 1991 WITH APOLLO INVESTMENT FUND LP AN INVESTMENT GROUP LED BY FORMER DREXEL BURNHAM LAMBERT INC EXECUTIVE LEON BLACK CONTROLLING THE OTHER HALF THE MEDIA CONGLOMERATE HAS HAD AN OPTION TO RAISE ITS STAKE TO 100 SINCE THE JOINT VENTURE WAS FORMED AND HAD BEEN EXPECTED TO DO SO NO LATER THAN AUGUST 1994 UNDER THE TERMS OF THE DEAL TURNER WILL PAY ABOUT 100 MILLION IN CASH FOR APOLLO'S INTEREST IN HB HOLDING AND ASSUME ABOUT 155 MILLION IN DEBT THAT DEBT IS DOWN SLIGHTLY FROM THE 170 MILLION IN ASSUMED DEBT THAT HB HOLDING TOOK ON TWO YEARS AGO WHEN IT BOUGHT HANNABARBERA PRODUCTIONS INC FROM GREAT AMERICAN COMMUNICATIONS CO 9312300053 931230 BUSINESS BRIEF MOBIL CORP STEPS ARE TAKEN TO REDUCE DISTRIBUTIONSYSTEM COSTS MOBIL CORP SAID IT SOLD FOUR PIPELINE COMPANIES CLOSED 10 PETROLEUMPRODUCT STORAGE TERMINALS AND SHED 11 VESSELS INCLUDING BARGES TUGS AND A TANKER AS PART OF A YEARLONG STREAMLINING OF ITS DOMESTIC PETROLEUMDISTRIBUTION SYSTEM A SPOKESMAN FOR THE FAIRFAX VA PETROLEUMPRODUCTS CONCERN DECLINED TO SAY WHETHER IT EXPECTED EITHER A ONETIME GAIN OR CHARGE TO RESULT HOWEVER THE CHANGES AREN'T EXPECTED TO HAVE A SIGNFICANT EFFECT ON MOBIL'S EARNINGS THE COMPANY NOTED THAT DESPITE THE REDUCTIONS ITS SALES OF GASOLINE HEATING OIL AND DIESEL FUEL HAVE INCREASED OUR OBJECTIVES HAVE BEEN TO CUT OUR COSTS AND AT THE SAME TIME TO INCREASE OUR ABILITY TO DELIVER PRODUCTS TO THE MARKETPLACE THE COMPANY SAID 9312300052 931230 BUSINESS BRIEF CAPUCINO'S INC BOSTON RESTAURANT CONCERN COMPANY AGREE TO MERGE CAPUCINO'S INC SAID IT ENTERED A LETTER OF INTENT TO MERGE WITH BOSTON RESTAURANT ASSOCIATES INC IN A STOCK TRANSACTION VALUED AT ABOUT 6 MILLION BASED ON THE CURRENT STOCK PRICE BRA SHAREHOLDERS WILL HAVE A 60 CONTROLLING INTEREST IN THE COMPANY WHICH WILL KEEP THE CAPUCINO'S NAME AND GEORGE CHAPDELAINE 48 YEARS OLD BRA PRESIDENT AND PRINCIPAL SHAREHOLDER WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OF CAPUCINO'S DANNY MCDANIEL 46 CAPUCINO'S CHIEF FINANCIAL OFFICER HAS BEEN ACTING CEO SINCE JULY WHEN CHIEF EXECUTIVE JAMES MARUNA 47 LEFT CAPUCINO'S BASED IN LOUISVILLE KY OWNS FOUR ITALIAN RESTAURANTS IN THE BOSTON AREA BRA IS A PRIVATELY HELD COMPANY THAT OPERATES SIX PIZZA RESTAURANTS AND TWO ITALIAN RESTAURANTS IN BOSTON AS WELL CAPUCINO'S WHICH WILL RELOCATE TO BOSTON HAD A LOSS OF 15 MILLION IN THE FISCAL YEAR ENDED APRIL 30 INCLUDING A 815996 CHARGE FOR WRITEDOWN OF ASSETS IN OVERTHECOUNTER TRADING CAPUCINO'S CLOSED AT 5625 CENTS UP 15625 CENTS 9312300051 931230 BUSINESS BRIEF COLUMBIA GAS SYSTEM INC FIRM UNIT GET EXTENSIONS FOR REORGANIZATION PLANS COLUMBIA GAS SYSTEM INC SAID THE US BANKRUPTCY COURT IN WILMINGTON DEL EXTENDED ITS EXCLUSIVE PERIOD TO FILE A PLAN OF REORGANIZATION TO MARCH 22 THE COURT ALSO EXTENDED THE EXCLUSIVITY PERIOD TO MARCH 22 FOR COLUMBIA GAS SYSTEM'S PRIMARY UNIT COLUMBIA GAS TRANSMISSION CORP IT WAS THE SEVENTH EXTENSION FOR THE TWO COMPANIES SINCE THEY FILED FOR PROTECTION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE IN JULY 1991 COLUMBIA GAS SYSTEM BASED IN WILMINGTON ALSO SAID IT WAS AWARE OF THIRDPARTY INTEREST IN COLUMBIA GAS TRANSMISSION BUT IT HADN'T YET RECEIVED ANY OFFERS FOR THE UNIT AT THE COURT HEARING A SPOKESMAN FOR COLUMBIA GAS TRANSMISSION'S COMMITTEE OF UNSECURED CREDITORS SAID A PHILADELPHIA INVESTMENT GROUP AND ANOTHER GROUP ASSOCIATED WITH PUBLIC SERVICE ENTERPRISE GROUP INC NEWARK NJ AN INVESTOROWNED UTILITY WERE INTERESTED IN COLUMBIA GAS TRANSMISSION 9312300050 931230 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 322 30 TO 119 DAYS 325 120 TO 149 DAYS 326 150 TO 179 DAYS 328 180 TO 239 DAYS 340 240 TO 270 COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 336 30 DAYS 333 60 DAYS 333 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 261 TWO MONTHS 266 THREE MONTHS 275 SIX MONTHS 302 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 325 ONE MONTH 330 THREE MONTHS 340 SIX MONTHS BANKERS ACCEPTANCES 335 30 DAYS 322 60 DAYS 322 90 DAYS 325 120 DAYS 328 150 DAYS 332 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 5/16 3 3/16 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 1/2 SIX MONTHS 3 3/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 602 JAPAN 3 SWITZERLAND 750 BRITAIN 550 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY DECEMBER 27 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 306 13 WEEKS 321 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 699 60 DAYS 707 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 694 60 DAYS 704 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 273 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9312300048 931230 TECHNOLOGY CALIFORNIA JUDGE ALLOWS EASING OF PESTICIDE RULES SAN FRANCISCO IN A CASE WATCHED CLOSELY BY ENVIRONMENTAL AND AGRICULTURAL GROUPS NATIONWIDE A STATE JUDGE HERE REFUSED TO BLOCK CALIFORNIA GOV PETE WILSON FROM EASING RESTRICTIONS ON THE USE OF THE POPULAR PESTICIDE METHYL BROMIDE BUT THE ISSUE IS SHAPING UP AS A CLASSIC DISPUTE BETWEEN ENVIRONMENTALISTS WHO FILED SUIT INSISTING THAT HEALTHHAZARD WARNINGS ARE MANDATED UNDER STATE LAW AND AGRICULTURAL INTERESTS WHICH CONTEND THAT SUCH WARNING REQUIREMENTS WOULD BE TOO EXPENSIVE AND WOULD UNDULY INFLAME PUBLIC CONCERN ABOUT THE CHEMICAL FEDERAL AND STATE OFFICIALS PREVIOUSLY DETERMINED THAT THE CHEMICAL MAY CAUSE BIRTH DEFECTS AND JUST THREE MONTHS AGO THE CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY CONCLUDED THAT ON JAN 1 GROWERS HAD TO START ISSUING HEALTH WARNINGS BEFORE USING THE PESTICIDE ON STRAWBERRIES WALNUTS GRAPES AND OTHER CROPS BUT LAST WEEK THE WILSON ADMINISTRATION MOVED TO EXEMPT ALL AGRICULTURAL USES OF METHYL BROMIDE FROM THE WARNINGS AND A COALITION OF ENVIRONMENTAL AND LABOR GROUPS WENT TO COURT CHALLENGING THAT ACTION A HEARING ON A PRELIMINARY INJUNCTION IS SCHEDULED FOR JAN 14 9312300047 931230 BUSINESS BRIEF HUNTINGTON BANCSHARES INC ACQUISITION OF TWO BANKS COMPLETED IN FOURTH PERIOD HUNTINGTON BANCSHARES INC AN 18 BILLION REGIONAL BANK HOLDING COMPANY IN COLUMBUS OHIO SAID IT COMPLETED THE ACQUISITIONS OF TWO INDIANA SAVINGS INSTITUTIONS IN THE FOURTH QUARTER IN THE ACQUISITION OF FIRST BANCORP INDIANA INC ABOUT 13 MILLION SHARES OF HUNTINGTON COMMON STOCK AND 187 MILLION IN CASH WERE DISTRIBUTED TO FIRST BANCORP SHAREHOLDERS IN A 40 CASH 60 STOCK TRANSACTION SHAREHOLDERS WHO ELECTED CASH RECEIVED 427084 FOR EACH SHARE OF FIRST BANCORP THEY OWNED THOSE CHOOSING STOCK RECEIVED 19772 SHARES OF HUNTINGTON COMMON STOCK FOR 9756 OF THEIR FIRST BANCORP SHARES AND THE BALANCE IN CASH THE ACQUISITION OF RAILROADMEN'S FEDERAL SAVINGS & LOAN ASSOCIATION WAS ACCOUNTED FOR AS A POOLINGOFINTERESTS WITH ABOUT 37 MILLION HUNTINGTON SHARES BEING ISSUED AS CONSIDERATION RAILROADMEN'S SHAREHOLDERS WILL RECEIVE 18293 SHARES OF HUNTINGTON COMMON STOCK FOR EACH SHARE OF RAILROADMEN'S THEY OWN 9312300046 931230 BUSINESS BRIEF FRUIT OF THE LOOM INC PRETAX GAIN OF 65 MILLION TO BE RECORDED BY FIRM FRUIT OF THE LOOM INC SAID IT WILL RECORD A FOURTHQUARTER PRETAX GAIN OF 65 MILLION OR ABOUT 55 CENTS A SHARE FROM ITS SALE OF AN INVESTMENT THE APPAREL MAKER IN CHICAGO RECEIVED BONDS AND PREFERRED STOCK IN ACME BOOT CO AS PART OF ITS 1987 SALE OF THE BOOT CONCERN TO CLOSELY HELD FARLEY INC IN 1991 WHEN ACME WAS EXPERIENCING FISCAL DIFFICULTIES FRUIT OF THE LOOM WROTE DOWN THE ACME SECURITIES IT HAD RECEIVED TO 5 MILLION ACME IN BETTER FINANCIAL HEALTH AFTER A RECENT PRIVATE PLACEMENT HAS NOW PAID OFF THE PRINCIPAL AND INTEREST IN FULL IN THE AMOUNT OF 70 MILLION THE COMPANY SAID PROCEEDS WILL BE USED PRIMARILY TO PAY DOWN DEBT FRUIT OF THE LOOM ALSO SAID THAT ITS US MANUFACTURING PLANTS WILL SHUT DOWN FOR THE FIRST WEEK IN JANUARY AND MAY DEPENDING ON THE TONE OF DEMAND WORK FOURDAY WEEKS IN THE FIRST QUARTER OF 1994 IN ORDER TO REDUCE INVENTORY 9312300045 931230 WORLD MARKETS STOCKS CLIMB TO A RECORD IN LONDON ON OPTIMISM ABOUT ECONOMY POST MODERATE GAINS IN TOKYO A WALL STREET JOURNAL NEWS ROUNDUP LONDON STOCKS SOARED 15 TO FINISH AT A RECORD HIGH ON OPTIMISM ABOUT THE ECONOMIC OUTLOOK FRANKFURT STOCKS SLUMPED 13 BUT REGAINED SOME OF THE LOST GROUND IN AFTERMARKET TRADING TOKYO STOCKS EXTENDED WEDNESDAY'S MODERATE GAINS IN A HALF DAY OF TRADING ON THURSDAY THE LAST TRADING SESSION OF THE YEAR THE BENCHMARK NIKKEI AVERAGE ROSE 14521 POINTS TO CLOSE THE YEAR AT 1741724 UP FROM A YEAREARLIER CLOSE OF 1992 OF 1692495 THE CLOSE MARKS THE FIRST YEAR SINCE 1989 THAT JAPAN'S STOCK MARKET RECORDED A GAIN FOR THE YEAR ELSEWHERE ON WEDNESDAY SINGAPORE STOCKS SET THEIR FIFTH NEW HIGH IN A ROW WHILE MANILA EQUITIES GAINED TO CLOSE OUT THE YEAR AT A RECORD LEVEL WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11110 DOWN 043 REFLECTING LOWER MARKETS IN ALL REGIONS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 28230 UP 864 OR 32 WITH UNITED PLANTATIONS OF MALAYSIA POSTING A 19 GAIN IN ITS LOCAL CURRENCY HOME CONSTRUCTION STOCKS TRAILED AT 14859 DOWN 262 OR 17 WITH MISAWA HOMES OF JAPAN SLIDING 67 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX JUMPED 497 POINTS TO 34620 AND SET AN INTRADAY RECORD PEAK OF 34742 THE FT 30STOCK INDEX RALLIED 410 POINTS OR 16 TO 25987 VOLUME WAS 4793 MILLION SHARES UP FROM 2421 MILLION SHARES IN THE PREVIOUS SESSION THE MARKET WAS SUPPORTED BY EXPECTATIONS OF LOWER INTEREST RATES GROWING ENTHUSIASM ABOUT THE BRITISH ECONOMY AND HARBINGERS OF RECOVERIES IN EUROPEAN ECONOMIES BUT THE JUMP IN PRICES WAS ATTRIBUTED MORE TO TECHNICAL FACTORS EXAGGERATED BY THE THIN HOLIDAYSEASON TURNOVER MARKET MAKERS WERE STILL SHORT OF SOME STOCK WHICH HAS DRIVEN UP PRICES AND INVESTORS SQUARED ACCOUNTS IN ANTICIPATION OF LIMITED TRADING TOMORROW WHEN THE THREEWEEK ACCOUNT EXPIRES AND THE MARKET WILL CLOSE EARLY FOR THE NEW YEAR HOLIDAY SHARES OF MOST MAJOR BRITISH BANKS RALLIED YESTERDAY ON BUYING BY LARGE INVESTORS FOLLOWING PREDICTIONS OF HIGHER DIVIDENDS BACKED BY OPTIMISTIC FORECASTS OF GROWING HOME SALES AND A CUT IN BRITISH BASE LENDING RATES RETAILERS CLOSED BROADLY HIGHER ON REPORTS THAT CHRISTMAS SALES WERE BETTER THAN EXPECTED THE GAINS EXTENDED TO FOOD RETAILERS WHICH HAD BEEN HIT IN RECENT MONTHS BY PRICEWAR FEARS BUT WATER STOCKS FELL ON PROFIT TAKING IN FRANKFURT THE DAX 30STOCK INDEX SKIDDED 2812 POINTS TO 221470 SELLING PRESSURE EMERGED FROM THE FUTURES AND OPTIONS MARKET AND GIVEN THE LIGHT VOLUME ON THE STOCK EXCHANGE THAT WAS ENOUGH TO CAUSE THE LOSSES WHICH ATTRACTED BARGAIN HUNTERS LATE IN THE DAY RESULTING IN A REBOUND FROM LOWS IN PARIS EQUITIES FINISHED WITH SOLID GAINS EVEN AFTER A LATE BOUT OF SELLING LEAVING THE BENCHMARK INDEX UP 23 FOR THIS YEAR WITH BULLISHNESS ABOUT FURTHER INCREASES THIS WEEK AND NEXT YEAR DESPITE MIXED SIGNS THAT THE FRENCH ECONOMY IS BACK ON TRACK FROM RECESSION FOR EXAMPLE DATA YESTERDAY SHOWED INDUSTRIAL ACTIVITY IN DECEMBER DECLINED FOLLOWING FOUR CONSECUTIVE MONTHS OF MANUFACTURING GAINS IN MILAN SHARE PRICES FELL AS INVESTORS LIGHTENED POSITIONS BECAUSE OF POLITICAL UNCERTAINTIES THE LATEST OF WHICH IS THE DATE ITALIAN VOTERS WILL ELECT A NEW PARLIAMENT THE BALLOTING INITIALLY EXPECTED NEAR THE END OF MARCH COULD BE PUSHED BACK AS FAR AS JUNE WITH CENTRIST PARTIES PUSHING FOR DELAYING MEASURES IN MADRID SHARES FELL SHARPLY DRAGGED DOWN BY NEGATIVE SENTIMENT STEMMING FROM THE SPANISH CENTRAL BANK'S DECISION TO TAKE MANAGEMENT CONTROL OF BANCO ESPANOL DE CREDITO A BIG COMMERCIAL BANK IN STOCKHOLM STOCKS RALLIED BROADLY SUPPORTED BY DECLINING SWEDISH INTEREST RATES FIRMER EUROPEAN STOCK TRENDS AND FUNDS' BUYING TO LIFT PRICES AT YEAR END THOUGH ACTIVITY WAS THIN IN MEXICO CITY SHARES ROSE ABOUT 1 TO A RECORD HIGH ON SEASONALLY LIGHT VOLUME DESPITE A DECLINE IN RATES AT THE WEEKLY PRIMARY DEBT AUCTION THE RISE PUSHED THE BELLWETHER INDEX UP 48 FOR THIS YEAR IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ADVANCED 31133 POINTS TUESDAY ROSE 14082 TO 1727203 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 220 MILLION SHARES UP FROM 2027 MILLION SHARES A DAY EARLIER ADVANCING ISSUES OUTNUMBERED RETREATING ISSUES 578373 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 1981 POINTS TUESDAY EDGED UP 208 TO 142927 FOUR INVESTMENT TRUSTS WERE SET UP ON TUESDAY AND 13 ON WEDNESDAY AND MOST ARE DEDICATED TO STOCK INVESTMENT NEW TRUST FUNDS' BUYING HELPED PRODUCE PRICE GAINS MEANWHILE PARTICIPANTS AWAITED THE JAPANESE GOVERNMENT'S ECONOMICSTIMULUS MEASURES EXPECTED IN MIDJANUARY AND MONITORED PARLIAMENTARY PROGRESS ON A POLITICAL REFORM BILL ON WHICH POLITICAL WRANGLING THREATENS THE GOVERNING COALITION THE BOURSE GENERALLY IGNORED NEWS REPORTS THAT PRIME MINISTER MORIHIRO HOSOKAWA WOULDN'T MENTION THE AMOUNT OF A POTENTIAL INCOMETAX CUT IN A SPEECH SCHEDULED FOR NEW YEAR'S DAY IN SYDNEY SHARE PRICES RALLIED 18 PARTLY ATTRIBUTED TO PENTUP DEMAND FROM OVERSEAS BUYERS THE MARKET WAS CLOSED MONDAY AND TUESDAY FOR A CHRISTMAS HOLIDAY BREAK THE BROAD GAINS WERE SUPPORTED BY STRENGTH IN US STOCKS A DAY EARLIER AND IN TOKYO STOCKS WEDNESDAY IN HONG KONG STOCKS LOST 1 IN AN UNSURPRISING CORRECTION FOLLOWING THE TOTAL 99 GAIN IN THE PREVIOUS FOUR SESSIONS PRICES SWUNG IN A WIDE RANGE THE MARKET OPENED LOWER WHICH ENCOURAGED BARGAIN HUNTING THAT LIFTED STOCKS TO NEW INTRADAY RECORDS BUT PROFIT TAKING DOMINATED AND PRICES ENDED NEAR THE SESSION'S LOWS PROPERTY ISSUES WHICH WERE HOT IN THE RECENT SURGE WERE HIT BY HEAVY SELLING IN SINGAPORE PRICES CLIMBED 14 MARKING A NEW HIGH FOR THE FIFTH CONSECUTIVE SESSION ON RECORD VOLUME LIQUIDITY REMAINED HIGH AND MARKET FUNDAMENTALS STRONG WITH HEAVY BUYING OF SMALLER STOCKS BY INDIVIDUAL INVESTORS AND BLUE CHIPS BY INSTITUTIONS IN TAIPEI SHARE PRICES FINISHED MIXED IN ACTIVE TRADING WITH DECLINING ISSUES OUTNUMBERING GAINING ISSUES 220100 BUT THE MAIN INDEX ROSE TO ITS HIGHEST LEVEL SINCE JULY 5 1991 BECAUSE OF ADVANCES IN HEAVILY WEIGHTED FINANCIAL STOCKS AND MAJOR INDUSTRIAL ISSUES IN MANILA EQUITIES ENDED THE YEAR AT A RECORD HIGH IN BRISK TRADING BOOSTED BY BUYING OF BLUECHIP ISSUES THE MARKET IS CLOSED THURSDAY AND FRIDAY THE COMPOSITE INDEX ON WEDNESDAY GAINED 3043 POINTS OR 1 TO 319608 FOR 1993 THE INDEX RALLIED 193986 POINTS MORE THAN DOUBLING FROM 125622 AT THE END OF 1992 IN WELLINGTON SHARES WERE PUSHED HIGHER BY SUPPORT FROM OVERSEASBASED INVESTORS THOUGH TRADING WAS EXTREMELY THIN WITH MANY DOMESTIC INVESTORS AND BUSINESSES TAKING YEAREND HOLIDAYS THE SEOUL MARKET WAS CLOSED FOR A HOLIDAY IN BANGKOK STOCKS ROSE 1 TO SET A RECORD HIGH THE SET INDEX ADDED 1594 POINTS TO 166863 LED BY FINANCIAL BLUE CHIPS FOR A GAIN THIS YEAR OF 87 HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9312300044 931230 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO CALENDAR FREEBIES WHILE LESSENING HANG ON AS A TRADITION YEAREND MAILINGS OF PROMOTIONAL CALENDARS ONCE AS COPIOUS AS CONFETTI SEEM TO BE EBBING THIS YEAR THE GRINCH HAS DEFINITELY STOLEN THESE KINDS OF GIVEAWAYS SAYS SUSAN BUTENHOFF OF ACCESS PUBLIC RELATIONS SAN FRANCISCO ALCOA CANNED CALENDAR GIVING THIS YEAR AS A COSTCUTTING MOVE AND CIBAGEIGY LIMITS THEM TO ONE PER PERSON EVEN JAPAN AIR LINES KNOWN FOR HANDSOME CALENDARS CUT ITS PRINT RUN BY 9 TO 12 ROB LIEBERMAN OF ALLWAYS ADVERTISING IN NEW JERSEY SAYS PROMOS LIKE NOSTRINGS CALENDAR GIVING HAVE LOST GROUND TO INCENTIVETYPE PROGRAMS ORGANIZERS AND CALENDAR SOFTWARE ALSO HAVE TAKEN THEIR TOLL BUT HEWING TO CUSTOM RAND CORP CONTINUES ITS CALENDAR DESIGNED AROUND QUOTATIONS FROM FAMOUS PEOPLE AND BOOKS HOECHST AG HAS NO PLANS TO DROP ITS CALENDAR WHICH OFFERS TWO PICTURE CHOICES EACH MONTH THE SPECIALTY ADVERTISING ASSOCIATION SAYS CALENDARS MADE UP 82 OF GIVEAWAYS IN 1992 DOWN SLIGHTLY FROM 1991 AGING FIDOS AND KITTIES BECOME A NICHE MARKET FOR VETS AND PETFOOD MAKERS THE GRAYING OF AMERICA SEEMS TO APPLY TO PETS AS WELL JUDGING BY A RISE IN SERVICES FOR OLDER ANIMALS THE PATIENTS WE SEE ARE OLDER THAN THEY USED TO BE SAYS MICHAEL GARVEY OF THE ANIMAL MEDICAL CENTER NEW YORK DR GARVEY CREDITS BETTER CARE AND NUTRITION FOR PETS' GREATER LONGEVITY LEE PYLE OF THE AMERICAN COLLEGE OF VETERINARY INTERNAL MEDICINE LAKEWOOD COLO SAYS ANNUAL GERIATRIC WORKUPS LIKE COMPLETE CHECKUPS FOR PETS ARE MORE COMMON SENIOR PETS ALSO REQUIRE MORE DENTAL CARE SAYS ERNEST VINE OF CENTRAL VETERINARY ASSOCIATES NEW YORK ONE OF WHOSE PARTNERS NOW FOCUSES ON VETERINARY DENTISTRY MEANWHILE PETFOOD MAKERS DISH UP MEALS WITH LESS SALT FAT AND PROTEIN SOME COME IN SMALLER PIECES SO THAT THEY'RE EASIER FOR OLDER PETS TO CHEW SAYS LYNN DORNBLASER OF NEW PRODUCT NEWS CHICAGO SOURCE TAGGING AN ANTITHEFT MEASURE FOR STORES IS SET TO SPARK MORE DEBATE TAGGING AT THE SOURCE COMES UNDER SCRUTINY OF DRUGSTORE CHAINS THE SYSTEM CALLS FOR TAGS THAT CAN BE READ BY STORES' ELECTRONICSECURITY DEVICES TO BE PUT IN PACKAGING BY MANUFACTURERS THE NATIONAL ASSOCIATION OF CHAIN DRUG STORES WHICH SAYS THEFT COSTS MEMBERS ABOUT 3 OF SALES DRAFTED CRITERIA FOR THE SYSTEMS AND PLANS TESTS IN THE FIRST QUARTER AT LEAST ONE SYSTEMS VENDOR 3M IS BALKING SAYING THE TEST DOESN'T FOCUS ON HOW THE DEVICES FIT INTO THE MANUFACTURING PROCESS MANUFACTURERS MEANWHILE WANT A CONSENSUS ON A SYSTEM BEFORE MOVING AHEAD DESPITE THE UNCERTAINTY SCHIEFFELIN & SOMERSET US IMPORTER OF JOHNNIE WALKER SCOTCHES TRIES A KIND OF SOURCE TAGGING DISTRIBUTORS MANUALLY TAG THE BOTTLES SLATED FOR FOOD STORES SUCH AS LUCKY IN CALIFORNIA IN TURN THE STORES KEEP THE WHISKEYS ON UNLOCKED SHELVES THE FIRM SAYS SALES IN THOSE STORES ON AVERAGE HAVE DOUBLED OFFSETTING THE TAGGING'S 5 TO 10CENTSPERBOTTLE COST KEEPING GREEN THE NATIONAL GOLF FOUNDATION JUPITER FLA ISSUES A PAIR OF GUIDEBOOKS TO HELP COURSE OPERATORS AND DEVELOPERS FATHOM ENVIRONMENTAL LAWS THE OPERATORS' GUIDE LOOKS AT ISSUES LIKE PESTICIDE USE WHILE THE DEVELOPERS' BOOK INCLUDES MATERIAL ON WILDLIFE AND WETLANDS THE PLAY'S THE THING RECKONS DIME SAVINGS BANK NEW YORK EACH TIME THE GIANTS FOOTBALL TEAM WINS A PLAYOFF GAME THE INTEREST RATE ON DIME'S NEW CD AVAILABLE FROM JAN 3 WILL RISE ONETENTH OF A PERCENTAGE POINT WITH DEPOSITS FLEEING OUT THE DOOR BANKS ARE LOOKING FOR NEW CARROTS TO DANGLE SAYS ROBERT K HEADY OF BANK RATE MONITOR WEST PALM BEACH FLA HOTEL OCCUPANCY WILL RISE TO 704 BY 1996 THE HIGHEST LEVEL SINCE 1979 AS FEWER ROOMS ARE BUILT SAYS COOPERS & LYBRAND NEW YORK BUT LODGING PRICES WILL BE FLAT OR RISE ONLY SLIGHTLY YOU HAVE SAVVY CONSUMERS USED TO NEGOTIATING PRICES COOPERS & LYBRAND MANAGER DONNA RAPHAEL SAYS A YEAREND SCRAMBLE ENSUES IN A FEW STATES TO MEET STORAGETANK DEADLINES A HANDFUL OF STATES ARE RUSHING TO HELP SMALL OWNERS AND OPERATORS OF UNDERGROUND STORAGE TANKS FOR CHEMICAL AND PETROLEUM PRODUCTS COMPLY WITH TWO DEADLINES UNDER THE 1988 RESOURCE CONSERVATION AND RECOVERY ACT THE ACT GAVE SUCH BUSINESSES FROM GASSTATION OWNERS TO OPERATORS OF TAXI FLEETS UNTIL DEC 22 TO INSTALL LEAKDETECTION MECHANISMS AND DEC 31 TO SHOW THAT THEY HAVE THE FINANCIAL RESOURCES UP TO 1 MILLION TO DEAL WITH TANK SPILLS MOST HAVE SET UP INSURANCE FUNDS OR PROGRAMS TO HELP BUSINESSES UPGRADE TANKS SO THEY CAN GET MORE AFFORDABLE PRIVATE INSURANCE AGAINST SPILLS BUT FOUR STATES AND THE DISTRICT OF COLUMBIA HAVEN'T IN NEW JERSEY LAST WEEK A GASOLINE AND FUELTAX BILL TO FINANCE THE FUND GOT A CONDITIONAL VETO TO GIVE THE STATE LEGISLATURE MORE TIME THE FEDERAL GOVERNMENT AGREED TO DELAY ENFORCEMENT UNTIL JAN 11 MEANWHILE NEW YORK THIS WEEK MANDATED THE USE OF ITS OIL SPILL FUND AS AN INTERIM STEP THE HIGH COST OF INSURANCE COULD CONCEIVABLY MEAN CLOSURE FOR SOME FIRMS SAYS A NEW YORK ENVIRONMENTAL OFFICIAL BRIEFS ACUPOLL AN OHIO PRODUCTTESTING FIRM TAPS ARCTIC ICE CUBES WATER PACKED IN MOLDED PLASTIC AND SOLD FOR 119 A BOX AS AMONG THE 1993 INTRODUCTIONS THAT LEFT CONSUMERS COLD VLASIC FOODS OFFERS TWOSPEAR PICKLE PACKS FOR THOSE WHO WANT TO AVOID DRIPPING WHILE BROWNBAGGING 9312300043 931230 MARKETING & MEDIA MARKETSCAN NOTHING IS NEW UNDER THE SUN BUT SOME PRODUCTS MAY SEEM SO BY KATHLEEN DEVENY IT WAS A BANNER YEAR FOR NEW HEALTH AND BEAUTY CARE PRODUCTS BUT CONSUMERS MAY HAVE FOUND SOME OF THE ITEMS SURPRISINGLY FAMILIAR MANY OF THE YEAR'S MOST SUCCESSFUL NEW HEALTH AND BEAUTY CARE ITEMS ARE ACTUALLY VARIATIONS OF EXISTING BRANDS SUCH AS CREST TOOTHPASTE WITH BAKING SODA AND A MEDIUMSIZED BOX OF TAMPAX TAMPONS CONSUMERS ARE WARY BECAUSE OF THE PROLONGED ECONOMIC SLUMP AND THE PROLIFERATION OF METOO PRODUCTS OVER THE PAST DECADE SO MANY OF THE NATION'S BIGGEST MARKETERS PLAYED IT SAFE CONSUMERS ARE OPENLY SKEPTICAL AND NOT AS WILLING TO TRY NEW PRODUCTS SAYS CHET KANE PRESIDENT OF KANE BORTREE & ASSOCIATES A NEW YORK CONSULTING FIRM THAT SPECIALIZES IN PRODUCT DEVELOPMENT THEY'RE MORE LIKELY TO TAKE A CHANCE ON AN ESTABLISHED BRAND NAME DATA GATHERED BY THE TOWNEOLLER SUBSIDIARY OF INFORMATION RESOURCES INC SHOW THAT THE MOST SUCCESSFUL NEW HEALTH AND BEAUTY CARE PRODUCT OF THE YEAR IS JUST SUCH A PRODUCT A NEW VERSION OF MONISTAT 7 AN OVERTHECOUNTER CURE FOR YEAST INFECTIONS THE ORIGINAL MONISTAT 7 MADE BY A UNIT OF JOHNSON & JOHNSON HAS BEEN AVAILABLE FOR SALE WITHOUT A PRESCRIPTION SINCE 1991 THE NEW VERSION PROVIDES A NEW DELIVERY SYSTEM FOR THE MEDICATION A SMALL TUBE OF CREAM FOR EXTERNAL TREATMENT ALONG WITH MEDICATED SUPPOSITORIES AVAILABLE SINCE MAY THE NEW MONISTAT 7 PRODUCT RANG UP THIRDQUARTER SALES OF 68 MILLION IN SUPERMARKETS AND DRUGSTORES ACCORDING TO TOWNEOLLER A SIMILAR NEW PRODUCT FROM RIVAL SCHERINGPLOUGH CORP UNDER THE NAME GYNELOTRIMIN HAD THIRDQUARTER SALES OF 31 MILLION TWO VERSIONS OF TYLENOL MARKETED BY JOHNSON & JOHNSON ALSO RANKED HIGH ON THE NEWPRODUCT HITS LIST PACKED IN AN EASIERTOOPEN CONTAINER CALLED FASTCAP THE PRODUCT IS AIMED AT ARTHRITIS SUFFERERS WHO HAVE TROUBLE OPENING CHILDPROOF CONTAINERS TOGETHER QUARTERLY SALES OF FASTCAP EXTRA STRENGTH TYLENOL CAPLETS AND FASTCAP EXTRA STRENTH TYLENOL GELCAPS REACHED 105 MILLION SEVERAL NEW DIET PRODUCTS ALSO STRUCK A CHORD WITH CONSUMERS MOST NOTABLY SWEET SUCCESS THE ONLY TRULY NEW BRAND ON THE LIST A PREMIXED VERSION OF THE MEAL SUBSTITUTE PRODUCT FROM NESTLE SA HAD THIRDQUARTER SALES OF 31 MILLION POSITIONED MORE AS A GUILTFREE CHOCOLATE INDULGENCE THAN A DIET AID SWEET SUCCESS HAS HELPED REVIVE SALES OF DIET DRINKS DURING THE 12 MONTHS ENDED NOV 30 SALES OF LIQUID MEAL SUBSTITUTES GREW 17 TO 258 MILLION ACCORDING TO TOWNEOLLER TOWNEOLLER RANKED PRODUCTS THAT HAD BEEN INTRODUCED IN THE FIRST SIX MONTHS BY THEIR DOLLAR SALES IN THE THIRD QUARTER TOWNEOLLER GATHERS DATA ON PRODUCT SHIPMENTS RECEIVED BY 30400 SUPERMARKETS AND 12900 DRUGSTORES AND PROJECTS NATIONAL RETAIL SALES OF HEALTH AND BEAUTY CARE PRODUCTS OVERALL MARKETING EXPERTS SAY 1993 HAS BEEN A RECORD YEAR FOR PRODUCT LAUNCHES SOME 17363 NEW ITEMS HIT SUPERMARKET AND DRUGSTORE SHELVES A 93 INCREASE FROM 1992 ACCORDING TO MARKETING INTELLIGENCE LTD A NAPLES NY FIRM THAT TRACKS NEW PRODUCTS WHILE THE NUMBER OF FOOD AND HOUSEHOLD PRODUCTS INTRODUCED DIDN'T BUDGE MUCH FROM LAST YEAR'S LEVEL THE NUMBER OF NEW HEALTH AND BEAUTY CARE ITEMS SOARED THERE WERE 5327 NEW HEALTH AND BEAUTY CARE ITEMS THIS YEAR 15 MORE THAN IN 1992 DRIVING THAT GROWTH WERE VITAMINS SKINCARE PRODUCTS AND LIPSTICKS THE PREVALENCE OF LINE EXTENSIONS WHICH ARE NEW VARIETIES FLAVORS OR SIZES OF EXISTING BRANDS IS INCREASING DRAMATICALLY ACCORDING TO RICHARD LAWRENCE PRESIDENT OF MARKETING INTELLIGENCE LINE EXTENSIONS ACCOUNTED FOR ABOUT 75 OF ALL NEWPRODUCT ACTIVITY IN 1993 UP FROM 68 IN 1992 RECORD QUANTITY DOESN'T ENSURE NOVELTY MR LAWRENCE SAYS HE ADDS THAT THESE DAYS CONSUMERS BELIEVE THAT LESS THAN ONETHIRD OF NEW PRODUCTS ARE ORIGINAL YET WHILE THE BARRAGE OF PRODUCTS HAS MADE CONSUMERS MORE CAUTIOUS MARKETING EXPERTS SAY THE STRATEGY IS STILL SOUND OFFERING A PRODUCT THAT CONSUMERS PERCEIVE AS UNIQUE GIVES MARKETERS A SIGNIFICANT ADVANTAGE OVER COMPETITORS LAUNCHING AN ENTIRELY NEW BRAND NAME HOWEVER IS OFTEN PROHIBITIVELY EXPENSIVE AND CONSUMERS WHO HAVE GROWN INCREASINGLY TIGHTFISTED DURING THE ECONOMIC SLUMP MAY BE LESS WILLING THAN EVER TO GAMBLE ON SOMETHING NEW AND FOR MANY MARKETERS LINE EXTENSIONS REPRESENT A DEFENSIVE MANEUVER ANALYSTS SAY THE NEW TYLENOL PRODUCT FOR EXAMPLE IS DESIGNED TO HALT THE BRAND'S LOSS OF MARKET SHARE TO IBUPROFENBASED PAIN RELIEVERS WHICH ARE ESPECIALLY POPULAR AMONG ARTHRITIS SUFFERERS DURING 12 MONTHS ENDED IN NOVEMBER SALES OF IBUPROFEN PAIN RELIEVERS GREW AT TWICE THE RATE OF ACETAMINOPHEN PRODUCTS INCLUDING TYLENOL THERE IS AN INTENSE BATTLE FOR MARKET SHARE IN MANY CATEGORIES SAYS HEMANT K SHAH AN ANALYST WITH HKS & CO IN WARREN NJ TYLENOL HAD TO DO SOMETHING AND THEIR STRATEGY APPEARS TO BE WORKING BASED ON THIRDQUARTER SALES IN SUPERMARKETS AND DRUGSTORES OF HEALTH AND BEAUTY CARE ITEMS INTRODUCED DURING THE FIRST SIX MONTHS OF 1993 9312300042 931230 BUSINESS BRIEF FOREST OIL CORP UNIT OF ENRON CORP GRANTS COMPANY 70 MILLION LOAN FOREST OIL CORP SAID IT OBTAINED A 70 MILLION LOAN FROM ENRON FINANCE CORP A SUBSIDIARY OF ENRON CORP FOREST A DENVERBASED OIL AND NATURAL GAS EXPLORATION AND PRODUCTION COMPANY SAID IT WILL USE 516 MILLION TO HELP FINANCE ACQUISITIONS IN SOUTH TEXAS AND OFFSHORE LOUISIANA AN ADDITIONAL 58 MILLION WILL BE USED FOR OFFSHORE DEVELOPMENT WORK FOREST SAID THE BALANCE MAY BE USED TO FINANCE DEVELOPMENT ON PROPERTIES SECURING THE LOAN EARLIER THIS MONTH THE ENRON SUBSIDIARY PROVIDED ABOUT 133 MILLION OF THE 265 MILLION FOREST PAID TO BUY ATLANTIC RICHFIELD CO INTERESTS IN ONE OFFSHORE AND TWO ONSHORE FIELDS IN THE GULF COAST AREA FOREST SAID 9312300041 931230 WHAT'S NEWS BUSINESS AND FINANCE MCI PLANS TO BUILD LOCAL NETWORKS IN MOST MAJOR US CITIES IN ITS BOLDEST ATTACK YET ON THE LOCAL BELL TELEPHONE MARKET THE 1 BILLION PLAN MAY GET SOME POWERFUL ASSISTANCE FROM CABLETV COMPANIES MCI HAS HELD TALKS WITH TELECOMMUNICATIONS AND TIME WARNER ABOUT BYPASSING LOCAL PHONE NETWORKS AND HAVING THE CABLE FIRMS CARRY ITS LONGDISTANCE TRAFFIC TO LOCAL CABLE SUBSCRIBERS THE INDEX OF LEADING INDICATORS ROSE 05 IN NOVEMBER ITS FOURTH CONSECUTIVE MONTHLY IMPROVEMENT THE GOVERNMENT'S MEASURE OF FUTURE ECONOMIC ACTIVITY WAS DRIVEN MAINLY BY GAINS IN THE LABOR MARKET AND CONTINUING STRENGTH IN BUSINESS INVESTMENT JP MORGAN'S CORSAIR FUND FACES A HUGE POTENTIAL LOSS ON ITS 162 MILLION POSITION IN BANCO ESPANOL DE CREDITO SPAIN'S CENTRAL BANK THIS WEEK THREW OUT BANESTO'S BOARD WHICH INCLUDED A MORGAN VICE CHAIRMAN AND LAUNCHED ITS OWN RESCUE RAISING THE POSSIBILITY THAT THE STAKE WILL BE WIPED OUT MADRID STOCKS FELL 15 AS THE FINANCIAL TROUBLES AT BANESTO SPILLED OVER INTO THE GENERAL MARKET WITH BANK STOCKS ESPECIALLY HARD HIT FOUR NORTHERN TRUST UNITS ARE BEING REVIEWED IN THE JUSTICE DEPARTMENT'S NATIONWIDE PROBE OF POSSIBLE MORTGAGELENDING BIAS THE CIVIL INQUIRY IS IN ITS PRELIMINARY STAGES THE PENTAGON REOPENED BIDDING FOR A MILITARY MEDICAL CONTRACT THAT WAS AWARDED TO AETNA FOR 35 BILLION INSTEAD OF THE CURRENT CONTRACTOR FOUNDATION HEALTH IN REACTION TO CRITICISM FROM THE GENERAL ACCOUNTING OFFICE PROSECUTORS ARE INVESTIGATING THE ACTIVITIES OF PRUDENTIAL SECURITIES' GENERAL COUNSEL BROADENING A PROBE OF THE FIRM'S PARTNERSHIP PRACTICES PEOPLE FAMILIAR WITH THE MATTER SAID FIDELITY INVESTMENTS UNVEILED VOLUME DISCOUNTS FOR BIG INVESTORS THE LATEST SALVO IN A PRICE WAR BREAKING OUT IN THE MUTUALFUND INDUSTRY SALES OF PREVIOUSLY OWNED HOMES GREW 29 TO A RECORD IN NOVEMBER DRIVEN BY LOW INTEREST RATES AND RISING CONSUMER CONFIDENCE ALL FOUR MAJOR US REGIONS POSTED STRONG GAINS CONSTRUCTION CONTRACTS FELL 1 IN VALUE FOR NOVEMBER AS GAINS IN HOUSING WERE OFFSET BY DECLINES IN CONSTRUCTION OTHER THAN HOMES AND BUILDINGS THE DOW INDUSTRIALS CREPT TO A THIRDSTRAIGHT RECORD UP 056 TO 379433 ON POSITIVE ECONOMIC NEWS THE WHITE HOUSE IS CONSIDERING IMPOSING TRADE SANCTIONS AGAINST CHINA AS THE TWO SIDES FACE DEADLINES TOMORROW ON SEVERAL BILATERAL TRADE ISSUES LONDON STOCKS SOARED 15 TO A RECORD ON RISING ECONOMIC OPTIMISM TOKYO STOCKS ROSE 14521 THURSDAY MORNING ENDING THE YEAR UP 29 MARKING THE FIRST TIME SINCE 1989 THAT JAPAN'S STOCK MARKET HAD A GAIN FOR THE YEAR DISNEY'S EISNER CALLED EURO DISNEY'S PERFORMANCE DREADFUL AND SAID THE THEME PARK WAS BARELY A D ON THE US COMPANY'S REPORT CARD THE DOLLAR POSTED STRONG GAINS AGAINST THE GERMAN SWISS AND BRITISH CURRENCIES IN A SURPRISE RALLY BONDS LEHMAN BROTHERS TREASURY INDEX 557048 OFF 1228 COMMODITIES OIL 1444 A BARREL UP 33 CENTS DOW JONES FUTURES INDEX 14240 UP 061 SPOT INDEX 12751 UP 005 DOLLAR 11174 YEN UP 038 17275 MARKS UP 00285 9312300040 931230 WHAT'S NEWS WORLDWIDE ISRAEL AND THE PLO SETTLED SOME KEY DIFFERENCES BUT ARAFAT REACTED COOLLY ISRAELI AND PALESTINIAN NEGOTIATORS ANNOUNCED IN CAIRO THAT THEY HAD RESOLVED MOST OF THE MAJOR STICKING POINTS PREVENTING THE ISRAELI WITHDRAWAL FROM GAZA AND JERICHO BUT PLO CHIEF ARAFAT PUSHED FOR MORE CONCESSIONS AND SAID HE HAD AMENDMENTS TO SUGGEST HIS TOUGH STANCE LINKED TO THE ISSUE OF WHO CONTROLS BORDER CROSSINGS POINTED TO MORE DELAY IN THE ISRAELI PULLOUT BUT PLO OFFICIALS PRIVATELY SAID THEY EXPECT THE FINAL DIFFERENCES TO BE RESOLVED WITHIN 10 DAYS VATICAN AND ISRAELI OFFICIALS APPROVED A DECLARATION OF PRINCIPLES SCHEDULED TO BE SIGNED TODAY IN WHICH THE JEWISH STATE AND THE HOLY SEE VOW TO ESTABLISH DIPLOMATIC TIES AND FIGHT ANTISEMITISM TWO MEN WERE ARRESTED ON FEDERAL CHARGES IN CONNECTION WITH A WAVE OF BOMBINGS THAT TARGETED A FAMILY AND KILLED FIVE PEOPLE ACROSS UPSTATE NEW YORK POLICE HAVEN'T DISCUSSED A MOTIVE FOR TUESDAY'S BOMBINGS THE SUSPECTS WERE CHARGED WITH TRANSPORTING ACROSS STATE LINES THE EXPLOSIVES USED IN THE SLAYINGS OF TWO VICTIMS CANCER RESEARCHERS USED A NEW TEST TO PINPOINT HEALTHY PERSONS WHO ARE ALMOST CERTAIN TO DEVELOP COLON CANCER THE TEST USING A SMALL SAMPLE OF BLOOD CELLS IS EXPECTED TO BE A MODEL FOR OTHER SIMPLE TESTS TO DETECT MANY OF THE GENES THAT HAVE BEEN FOUND IN RECENT YEARS TO TRIGGER CANCER THE FDA ANNOUNCED THAT IT WILL ALLOW CLAIMS THAT FOLIC ACID IN EARLY PREGNANCY CAN REDUCE THE THREAT OF CERTAIN BIRTH DEFECTS BUT THE FEDERAL AGENCY RULED AGAINST A NUMBER OF OTHER HEALTH CLAIMS FOR SPECIFIC DIETARY SUPPLEMENTS INCLUDING DIETARY FIBER ANTIOXIDANT VITAMINS AND FISH OILS A DOZEN PACKED BUSES PUSHED ACROSS RURAL BOSNIA TAKING ABOUT 900 SARAJEVANS TO REFUGE IN CROATIA ANOTHER 71 REFUGEES FROM THE BOSNIAN CAPITAL TRAVELED IN THE OPPOSITE DIRECTION AND ARRIVED SAFELY IN SERBIA THE EVACUATION IS A PRIVATE EFFORT ASSISTED BY THE UN AND THE RED CROSS THE UN IS CONSIDERING NAMING AN INSPECTOR TO INVESTIGATE ABUSES BY UN PEACEKEEPERS IN YUGOSLAVIA AND ELSEWHERE ACCORDING TO UN OFFICIALS THE YELTSIN GOVERNMENT HAS SCRAPPED PLANS TO REDUCE THE SIZE OF THE RUSSIAN ARMY BY NEARLY HALF DEFENSE MINISTER GRACHEV SAID PRESIDENT YELTSIN REPEATEDLY HAS EXPRESSED HIS GRATITUDE TO THE ARMY FOR COMING TO HIS DEFENSE THOUGH RELUCTANTLY AND HELPING HIM TO DEFEAT HIS HARDLINE OPPONENTS IN PARLIAMENT IN EARLY OCTOBER GERMANY DENIED A VISA REQUEST BY RUSSIAN NATIONALIST ZHIRINOVSKY SAYING THAT THE POLITICIAN'S PLANNED VISIT COULD JEOPARDIZE GERMAN INTERESTS IT WAS THE SECOND REBUFF THIS WEEK FOR ZHIRINOVSKY WHO WAS ORDERED TO LEAVE BULGARIA AFTER HE CALLED FOR THE RESIGNATION OF ITS PRESIDENT THE ADMINISTRATION PLANS A LIMITED CHALLENGE OF A RULING STRIKING DOWN THE BAN ON HOMOSEXUALS IN THE MILITARY IT WON'T APPEAL THE CORE ISSUE OF AN APPEALS COURT RULING THAT THE NAVAL ACADEMY COULDN'T EXPEL A MIDSHIPMAN ON THE BASIS OF SEXUAL ORIENTATION BUT WILL ARGUE THAT THE JUDGES WENT TOO FAR BY ORDERING THAT HE BE MADE A NAVY OFFICER CHINESE HEALTH OFFICIALS DEFENDED A PROPOSED LAW ADVOCATING ABORTION AND STERILIZATION TO PREVENT BIRTHS OF CHILDREN WITH DISABILITIES RESPONDING TO CONCERN IN THE WEST THAT THE MEASURE WILL VIOLATE HUMAN RIGHTS OFFICIALS SAID THE PLANNED LEGISLATION IS TOTALLY DIFFERENT FROM HITLER'S RACIST EUGENICS POLICY NEW FAA REGULATIONS WILL REQUIRE PILOTS OF COMMUTER AIRCRAFT AND LARGER PRIVATE PLANES TO MAKE SPECIFIC INSPECTIONS FOR SNOW AND ICE ON THE WINGS BEFORE TAKEOFF THE AGENCY ANNOUNCED THE NEW RULES EXTEND TO SMALLER AIRCRAFT THE REQUIREMENTS IMPOSED ON LARGE COMMERCIAL PLANES LAST YEAR HONDURAN OFFICIALS WERE INVOLVED IN ALMOST 200 DISAPPEARANCES OF SUSPECTED LEFTISTS IN THE 1980S AND MUCH EVIDENCE SUGGESTS THAT US OFFICIALS WHO KNEW OF THE ACTIONS DID NOTHING TO STOP THEM THE HONDURAS HUMANRIGHTS COMMISSIONER REPORTED DIED WILLIAM SHIRER 89 A JOURNALIST WHO SMUGGLED HIS DIARIES OUT OF HITLER'S GERMANY AND WROTE THE RISE AND FALL OF THE THIRD REICH WHILE BLACKLISTED DURING THE MCCARTHY ERA TUESDAY IN BOSTON AFTER BEING HOSPITALIZED WITH HEART AILMENTS 9312300039 931230 BUSINESS BRIEF COMPUSA INC SALES GREW 13 IN QUARTER STOCK SURGES 78 ON NEWS COMPUSA INC POSTED A 13 INCREASE IN SALES FOR THE LATEST QUARTER AT STORES OPEN AT LEAST A YEAR THE COMPUTER SUPERSTORE RETAILER'S STOCK SURGED 78 ON THE NEWS THE COMPANY'S TOTAL SALES FOR THE FISCAL SECOND QUARTER ENDED DEC 25 JUMPED 65 TO 537 MILLION FROM 325 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING COMPUSA'S SHARES CLIMBED 150 TO CLOSE AT 2075 A SHARE THOUGH THE SALES FIGURES PLEASED INVESTORS THEY MAY NOT ALLEVIATE CONCERNS ABOUT PROFITABILITY THAT APPARENTLY LED TO THE UNEXPECTED RESIGNATION TWO WEEKS AGO OF NATHAN P MORTON COMPUSA'S CHAIRMAN AND CHIEF EXECUTIVE THE COMPANY IN DALLAS HASN'T YET REPORTED EARNINGS FIGURES FOR THE LATEST PERIOD IN ITS FIRST QUARTER THE RETAILER HAD A 986000 LOSS ON SALES OF 4366 MILLION 9312300038 931230 BUSINESS BRIEF DELTA AIR LINES SPECIAL ROUNDTRIP FARES SET FOR NEW YEAR'S HOLIDAY DELTA AIR LINES SAID IT IS OFFERING ROUNDTRIP FARES OF 99 AND 139 FOR TRAVEL ON NEW YEAR'S EVE AND NEW YEAR'S DAY DEPARTURES MUST BEGIN AFTER 1201 AM DEC 31 AND RETURNS MUST BEGIN BEFORE MIDNIGHT JAN 1 THE 99 ROUNDTRIP FARE APPLIES TO FLIGHTS 750 MILES OR LESS EACH WAY THE 139 ROUNDTRIP FARE APPLIES TO TRAVEL OVER 750 MILES EACH WAY THE NONREFUNDABLE FARES WHICH CANNOT BE COMBINED WITH OTHER FARES OR DISCOUNTS MAY NOT BE AVAILABLE ON ALL FLIGHTS THE FARES REQUIRE NO ADVANCE PURCHASE OR MINIMUM STAY CONTINENTAL AIRLINES HOUSTON MATCHED DELTA'S FARE PROGRAM AND USAIR GROUP INC ARLINGTON VA MATCHED DELTA'S PROMOTIONAL FARE IN MARKETS WHERE IT COMPETES WITH THE ATLANTA CARRIER 9312300036 931230 FOREIGN EXCHANGE DOLLAR SURPRISES TRADERS RISES SHARPLY AGAINST SWISS UK GERMAN CURRENCIES BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR SNAPPED OUT OF ITS RECENT HOLIDAY LETHARGY AND LAUNCHED A SNEAK ATTACK AGAINST EUROPEAN CURRENCIES RACKING UP STRONG GAINS AGAINST THE DEUTSCHE MARK THE SWISS FRANC AND STERLING THE DOLLAR ALSO ROSE AGAINST THE YEN ALTHOUGH LESS SHARPLY AS JAPAN'S POLITICAL AND ECONOMIC PROBLEMS CONTINUED TO WEIGH ON THE JAPANESE CURRENCY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17275 DEUTSCHE MARKS WELL UP FROM 16990 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11174 YEN UP FROM 11136 YEN ABOUT MIDDAY ON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 11182 YEN AND AT 17246 MARKS WITH MANY CURRENCYTRADING DESKS STILL THINLY STAFFED IN EXPECTATION OF A QUIET WEEK OF YEAREND TRADING THE DOLLAR SURPRISED THE MARKET BY PUSHING STEADILY HIGHER THROUGHOUT THE DAY THE MOVE BEGAN IN EUROPEAN TRADING DEALERS NOTED AS PLAYERS TOOK PROFITS ON RECENT RALLIES BY THE SWISS FRANC AND STERLING AND SHIFTED FUNDS INTO THE DOLLAR BUT AS THE SWITCH INTO THE DOLLAR PUSHED THE US CURRENCY THROUGH SOME TECHNICAL LEVELS THE MOVE TOOK ON A LIFE OF ITS OWN TRIGGERING WAVES OF STOPLOSS ORDERS THAT LEFT THE DOLLAR ALMOST THREE PFENNIGS HIGHER BY THE END OF THE DAY IN THE AFTERNOON IT JUST EXPLODED LED IN PART BY THE MOVE AGAINST THE SWISS FRANC AND THE POUND SAID ANDY WILKOFF A VICE PRESIDENT AT PAINE WEBBER IN NEW YORK STERLING WAS CHANGING HANDS AT 14775 IN LATE NEW YORK DEALINGS DOWN FROM 15080 LATE TUESDAY WHILE THE DOLLAR WAS AT 14665 SWISS FRANCS UP FROM 14385 FRANCS ALSO BACKING UP THE DOLLAR TRADERS NOTED WAS THE MARKET'S PERCEPTION THAT THE DOLLAR IS SET FOR A LENGTHY RALLY AGAINST THE MARK IN 1994 ON THE BACK OF STRONG US ECONOMIC PERFORMANCE AND DECLINING INTEREST RATES IN GERMANY TRADERS NOTED THAT SOME NEW SIGNS OF US ECONOMIC STRENGTH EMERGED TO SUPPORT THAT VIEW INCLUDING A HEALTHY RISE IN THE US LEADING INDICATORS AND AN ALLTIME HIGH IN EXISTING HOME SALES THERE'S A GENERAL FEELING THAT PEOPLE HAVE THAT THE MARK WILL BECOME A WEAK CURRENCY IN 1994 SAID MATS JANSSON AN ASSISTANT VICE PRESIDENT AT SKANDINAVISKA ENSKILDA BANKEN IN NEW YORK WHO NOTED THAT THE DOLLAR'S CLIMB COULD BE SOMETHING OF A PREVIEW OF NEXT YEAR'S TRADING MY GUT FEELING IS THAT NO ONE WANTS TO MISS A FIRSTQUARTER DOLLAR RALLY SO THEY WERE LOADING UP A BIT TODAY ADDED TOM HOGE A CORPORATE DEALER AT CREDIT SUISSE IN NEW YORK THE COMMERCE DEPARTMENT'S COMPOSITE INDEX OF LEADING INDICATORS DESIGNED TO FORECAST THE FUTURE PERFORMANCE OF THE ECONOMY ROSE 05 IN NOVEMBER THE FOURTH STRAIGHT MONTHLY INCREASE SALES OF EXISTING HOMES IN THE MONTH MEANWHILE ROSE 29 TO AN ANNUAL RATE OF 4210000 THE HIGHEST RATE EVER RECORDED BUT TRADERS WARNED NOT TO READ TOO MUCH INTO THE RALLY NOTING THAT ONLY A RELATIVELY SMALL NUMBER OF ORDERS WERE NEEDED TO SEND THE DOLLAR SOARING A MORE TELLING READING OF THE MARKET'S SENTIMENT WON'T COME UNTIL FULLSCALE TRADING RETURNS IN JANUARY AND BY THEN THE DOLLAR'S GAINS COULD EASILY HAVE BEEN LOST 9312300035 931230 BUSINESS BRIEF MOTO PHOTO INC PERIOD YEARLY NET TO RISE PERSHARE '93 LOSS IS SEEN MOTO PHOTO INC DAYTON OHIO EXPECTS TO REPORT HIGHER NET INCOME FOR THE FOURTH QUARTER AND YEAR BUT STILL SEES A PERSHARE LOSS FOR 1993 BECAUSE OF STEEP DIVIDEND REQUIREMENTS CHAIRMAN AND CHIEF EXECUTIVE MICHAEL F ADLER SAID MR ADLER SAID THAT THE FRANCHISER AND OPERATOR OF ONEHOUR PHOTOFINISHING STORES EXPECTS TO BOOST FOURTHQUARTER NET BY 28 TO 300000 ON REVENUE OF MORE THAN 11 MILLION THAT COMPARES WITH 1992 FOURTHQUARTER NET OF 233750 ON 10 MILLION IN REVENUE THE COMPANY EXPECTS TO REPORT FULLYEAR NET OF MORE THAN 500000 ON REVENUE OF ABOUT 39 MILLION AGAINST 1992 NET OF 330535 ON REVENUE OF 37 MILLION HOWEVER DUE TO DIVIDEND REQUIREMENTS ON PREFERRED SHARES THE COMPANY EXPECTS FOURTHPERIOD PERSHARE EARNINGS OF ONE CENT OR LESS COMPARED WITH A 1992 LOSS OF ONE CENT AND FOR THE FULL YEAR MOTO PHOTO EXPECTS A LOSS OF 10 CENTS A SHARE COMPARED WITH A LOSS OF FOUR CENTS IN 1992 9312300034 931230 BUSINESS BRIEF CRANE CO COMPANY PAYS 70 MILLION FOR BURKS PUMPS OF OHIO CRANE CO STAMFORD CONN AN ENGINEERED PRODUCTS CONCERN SAID IT ACQUIRED BURKS PUMPS A MAKER OF FLUID PUMPS FOR ABOUT 70 MILLION CRANE CO WHICH HAD ABOUT 13 BILLION IN SALES LAST YEAR SAID THE ACQUISITION OF BURKS PUMPS SHOULD BOLSTER ITS POSITION IN THE FLUID PUMP AND VALVE INDUSTRY A SPOKESMAN FOR CRANE DECLINED TO DISCLOSE FINANCIAL INFORMATION FOR BURKS PUMPS PIQUA OHIO BURKS PUMPS HAS MANUFACTURING FACILITIES IN PIQUA AND DECATUR ILL AND PROVIDES ENGINEERED PUMPS FOR SPECIALIZED COMMERCIAL INDUSTRIAL AND MUNICIPAL FLUID HANDLING APPLICATIONS CRANE SAID BURKS PUMPS WILL BECOME PART OF ITS ENGINEERED INDUSTRIAL PRODUCTS BUSINESS SEGMENT IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY CRANE FELL 375 CENTS TO 2475 9312300033 931230 BUSINESS BRIEF ACCOR SA UNIT PLANS TO HELP REFURBISH AND MANAGE CHINESE HOTELS ACCOR SA THE FRENCH HOTEL GROUP PLANS TO HELP CHINA REFURBISH 100 GOVERNMENTRUN HOTELS AND THEN MANAGE THEM UNDER ACCOR'S IBIS AND NOVOTEL ECONOMY HOTEL CHAINS ACCOR SAID INVESTMENT IN A PROPOSED JOINT VENTURE WITH THE CHINESE GOVERNMENT WILL BE MADE VIA ACCOR ASIA PACIFIC CORP WHICH GROUPS THE COMPANY'S INTERESTS IN ASIA AAPC WILL DRAW ON MONEY FROM A PLANNED CAPITAL BOOST TO CONTRIBUTE ROUGHLY 15 OF A 100 MILLION HOTELRENOVATION FUND SET UP BY CHINA ACCOR HOPES TO BEGIN WORK ON THE FIRST PART OF THE VENTURE OR 30 HOTELS IN EARLY 1994 THE PROJECT WOULD SUBSTANTIALLY INCREASE ACCOR'S PRESENCE IN ASIA WHICH THE GROUP HAS TARGETED FOR FAST EXPANSION AAPC BASED IN AUSTRALIA CURRENTLY MANAGES SOME 64 ESTABLISHMENTS REPRESENTING 10000 ROOMS 9312300032 931230 MARKETING & MEDIA ADVERTISING REMEMBER BOHEMIAN RHAPSODY' YOU'RE SO VAIN' CBS HOPES SO SOME OF CBS'S FM RADIO STATIONS HOPE A NEW OLDIES FORMAT CALLED ARROW HITS ITS TARGET AMONG LISTENERS AND ADVERTISERS ARROW WHICH STANDS FOR ALL ROCKANDROLL OLDIES FEATURES HITS FROM THE 1970S WITH SOME TUNES FROM THE LATE 1960S AND EARLY 1980S THROWN IN ITS TARGET AUDIENCE IS 35 TO 49 YEARS OLD WITH A CORE AUDIENCE OF 37YEAROLDS ARROW'S AIM IS CLEAR TO BOOST RATINGS AND LURE ADVERTISERS WHO ARE INTERESTED IN REACHING A PRIME DEMOGRAPHIC THAT HAS PLENTY OF DISPOSABLE INCOME IN THEORY ARROW SHOULD APPEAL TO MEN AND WOMEN WHO ARE 10 YEARS YOUNGER THAN THOSE WHO TUNE IN TO A TRADITIONAL OLDIES STATION WITH HITS FROM THE '50S AND '60S AND THAT NOTION IS ATTRACTIVE TO ADVERTISERS THE LARGEST SEGMENT OF THE POPULATION IS BETWEEN 35 AND 40 YEARS OLD SAYS ROD CALARCO VICE PRESIDENT OF THE CBSFMOWNED STATIONS DIVISION IN THAT GROUP IS A LOT OF LAWYERS AND DOCTORS AND OTHERS WITH LOTS OF MONEY TO SPEND THE FORMAT WHICH IS NOW HEARD ON FOUR OF CBS'S 13 FM STATIONS IN WASHINGTON LOS ANGELES DALLAS AND HOUSTON IS THE SECOND GENERATION OF AN ALREADY SUCCESSFUL OLDIESBUTGOODIES FORMAT WITH SONGS FROM THE '50S AND '60S THAT FORMAT IS HEARD ON CBSFM STATIONS IN NEW YORK BOSTON PHILADELPHIA AND ST LOUIS WOODWARD & LOTHROP A DEPARTMENT STORE CHAIN IN WASHINGTON IS ONE CLIENT WON OVER BY THE 1970S FORMAT ON WARWFM IN WASHINGTON WE REEVALUATED THE STATION ONCE IT CHANGED ITS FORMAT AND WE'RE USING IT MORE SAYS WENDY THOMAS THE CHAIN'S TELEVISION AND RADIO MEDIA BUYER ARROW HAS A BRIGHTER SOUND AND WE THINK THE PEOPLE LISTENING TO IT WOULD ALSO BE OUR CUSTOMERS ANOTHER ATTRACTION SAYS MS THOMAS IS THAT UNLIKE OTHER ROCK STATIONS THAT ATTRACT MOSTLY MALE LISTENERS THE BLEND OF ARROW'S MUSIC TENDS TO APPEAL TO FEMALE LISTENERS AS WELL PRIOR TO THE FORMAT SWITCH WOODWARD & LOTHROP USED THE STATION VERY LITTLE SAYS MS THOMAS FOR 11 YEARS PRIOR TO NOV 19 WARW WAS WLTT WHICH PLAYED LITE MUSIC SUCH AS BILLY JOEL'S JUST THE WAY YOU ARE THE STATION TOOK IN ONLY 45 MILLION IN ADVERTISING REVENUE IN 1993 ACCORDING TO INVESTING IN RADIO A JOURNAL FROM BIA PUBLICATIONS IN CHANTILLY VA WHICH PUBLISHES REFERENCE BOOKS AND ESTIMATES THE BILLINGS OF RADIO STATIONS OTHER ADVERTISERS RECENTLY HAVE COME CALLING AT WARW INCLUDING BRITCHES GREAT OUTDOORS AND THE WASHINGTON AREA CADILLAC DEALERS ASSOCIATION KCBSFM IN LOS ANGELES WAS THE FIRST OF THE CBSOWNED STATIONS TO SIGN ON WITH THE ARROW FORMAT IN SEPTEMBER SPINNING RECORDS SUCH AS DOCTOR MY EYES BY JACKSON BROWNE WON'T GET FOOLED AGAIN BY THE WHO AND WHEN WILL I BE LOVED BY LINDA RONSTADT SOMETHING HAD TO BE DONE TO ENTICE LISTENERS AND ADVERTISERS TO THE STATION IT WASN'T DOING WELL WITH A '50S AND '60S OLDIES FORMAT ACCORDING TO BIA KCBSFM HAD AD REVENUE OF 135 MILLION THIS YEAR NEARLY HALF OF THE 25 MILLION ITS DIRECT COMPETITOR KRTHFM TOOK IN IT BECAME APPARENT WE WEREN'T GOING TO WIN AN OLDIES BATTLE WITH KRTH SAYS MR CALARCO IN CONTRAST WCBSFM IN NEW YORK HAD AN ESTIMATED 24 MILLION OF AD REVENUE IN 1993 AFTER EXTENSIVE RESEARCH CBS DISCOVERED A VOID IN LOS ANGELES RADIO A LOT OF LISTENERS WERE LIVING OFF THE SCANNER BUTTON SAYS TOMMY CW EDWARDS KCBSFM'S PROGRAM DIRECTOR NOW OUR SONGS CROSS FORMAT BOUNDARIES HE SAYS WE PLAY CLASSIC ROCK SONGS BUT WE ALSO PLAY RECORDS A STATION WITH A CLASSIC ROCK FORMAT WOULDN'T DARE PLAY BECAUSE IT DOESN'T FIT ITS NARROW FORMAT SO LISTENERS TO KCBS CAN HEAR CARLY SIMON'S YOU'RE SO VAIN FOLLOWED BY KILLER QUEEN BY QUEEN THERE IS HARDLY ANY TALK ON ARROW STATIONS IN FACT MANY DISK JOCKEYS ON KCBS ONLY USE THEIR FIRST NAMES TO MAKE THEM SOUND FRIENDLIER TO LISTENERS AND FOR ADVERTISERS THERE ARE ONLY BRIEF COMMENTS BETWEEN THE RECORDS SUCH AS FINALLY LA HAS 1970S OLDIES ON ONE RADIO STATION AND WE'RE ALL ROCKANDROLL OLDIES NO BUBBLE GUM NO DOOWOP NO MEANINGLESS CHATTER NO KIDDING ADVERTISERS ON KCBS INCLUDE KNOTS BERRY FARM THE LOS ANGELES TIMES AUTOMOBILE CLASSIFIED SECTION RADIO SHACK AND GERMAN AIRLINE LUFTHANSA THIS FORMAT ATTRACTS A YOUNGER ADULT AUDIENCE AND THERE IS A NEED FOR IT IN THIS MARKETPLACE SAYS ROSETTA RIOS A SENIOR BROADCAST NEGOTIATOR AT WPP GROUP'S J WALTER THOMPSON IN LOS ANGELES WHO PLACED THE CALIFORNIA STATE LOTTERY ON THE STATION FOR THE FIRST TIME IT IS TOO SOON TO TELL HOW POPULAR ARROW WILL BE BUT CBSFM EXECUTIVES' SPIRITS ARE BUOYED BY PHONE CALLS FROM MEDIA BUYERS AND LISTENERS ARROW IS A LOGICAL EVOLUTION IN RADIO SAYS ROBERT UNMACHT HEAD OF M STREET JOURNAL IN NEW YORK WHICH TRACKS RADIO FORMATS THE FIRST OLDIES FORMATS PLAYED PREBEATLES HE SAYS THE NEXT FORMAT PLAYED SONGS FROM 1964 THROUGH 1972 NOW COMES ARROW THERE ARE ONLY A HANDFUL OF STATIONS IN THE US PLAYING THE OLDIES FORMAT WITH AN EMPHASIS ON THE 1970S IN COMPARISON THERE ARE APPROXIMATELY 735 STATIONS DOMESTICALLY WITH THE TRADITIONAL OLDIES FORMAT MAKING IT THE FIFTH MOST POPULAR FORMAT BEHIND COUNTRY MUSIC ADULT CONTEMPORARY TUNES NEWS/TALK AND RELIGION AND WHERE IS DISCO A MAINSTAY ON RADIO IN THE 1970S IN ALL THIS DISCO IS STILL ON THE SIDELINES AT ARROW BUT SOME STATIONS PLAYING '70S MUSIC DEVOTE TIME TO IT FOR INSTANCE WPLJFM IN NEW YORK ISOLATES DISCO ON A SPECIAL SHOW ON SATURDAY NIGHTS LISTENERS MAY NOT BE READY YET FOR A FULLFLEDGED RETURN TO DISCO BUT ARROW IS A VERY SAFE FORMAT FOR ADVERTISERS AND STATIONS SAYS MR UNMACHT YOU COULDN'T FIND A LOT OF THIS 1970S MUSIC ON THE RADIO PRIOR TO THIS YEAR BUT PEOPLE WERE PLAYING IT AT PARTIES AND NOSTALGIA ALBUMS WERE SELLING WELL COUCH POTATOES RISK OVERDOSING ON MORE THAN JUST FOOTBALL IF THEY WATCH TV COVERAGE OF THE COLLEGE BOWL GAMES ON NEW YEAR'S DAY THEY COULD OVERDOSE ON ADVERTISING TOO FRITOLAY PEPSICO'S SNACKFOOD UNIT PLANS TO SPEND MORE THAN 1 MILLION DURING THE GAMES TO BROADCAST A COMMERCIAL FOR NEW WAVY LAY'S POTATO CHIPS STARRING JOHN RATZENBERGER CLIFF ON THE OLD CHEERS SHOW AND BRUCE SMITH OF THE BUFFALO BILLS FOOTBALL TEAM OMNICOM GROUP'S BBDO CREATED THE 30SECOND SPOT AS PART OF ITS ADVERTISING BLITZ FRITOLAY ALSO IS SPONSORING 30SECOND VIGNETTES DURING THE BOWL GAMES THE SPOTS ENTITLED WAVY LAY'S LOOKWHO'SMAKINGWAVES PRESENTS ARE SET TO AIR IMMEDIATELY AFTER THE 30SECOND COMMERCIAL FOR WAVY LAY'S CHIPS TELEVISION PERSONALITY DOWNTOWN JULIE BROWN CHATS IT UP WITH NATIONAL FOOTBALL LEAGUE PLAYERS ABOUT HOW THEY MAKE WAVES THE DALLAS OFFICE OF OMNICOM'S DDB NEEDHAM CREATED THE SPOTS NATIONAL FOOTBALL LEAGUE PROPERTIES PRODUCED THEM THE ABC NETWORK A UNIT OF CAPITAL CITIES/ABC IS BROADCASTING THE ROSE SUGAR AND CITRUS BOWLS THE NBC NETWORK A UNIT OF GENERAL ELECTRIC CO IS COVERING THE COTTON FIESTA AND ORANGE BOWLS SEPARATELY MCI COMMUNICATIONS IS BEGINNING NEW COMMERCIALS FOR ITS PROOF POSITIVE LONGDISTANCE SERVICE FOR BUSINESS CUSTOMERS DURING THE GAMES ON NBC THE NETWORK IS INCLUDING A PROOF POSITIVE INSTANT REPLAY TO BE SHOWN ONCE DURING EACH BOWL GAME IT AIRS USA DIRECT PRODUCER OF FITNESS GURU SUSAN POWTER'S STOP THE INSANITY INFOMERCIAL TAPPED GREY ADVERTISING NEW YORK TO HANDLE ITS BROADCAST MEDIA PLANNING AND BUYING BILLINGS COULDN'T BE DETERMINED DONALD A EPSTEIN USA DIRECT VICE PRESIDENT SAID SEVERAL COOPERATIVE PROJECTS INCLUDING COPRODUCTIONS OF INFOMERCIALS FOR SOME OF GREY'S BLUECHIP CLIENTS ARE UNDER CONSIDERATION A GREY SPOKESWOMAN AGREED WE'VE BEEN INTERESTED IN INFOMERCIALS FOR A LONG TIME AND THIS IS A WAY TO GET A GOOD STEP IN SHE SAID GREY'S MEDIA CONNECTIONS UNIT FORMED LAST YEAR AS A FULLSERVICE MEDIA COMPANY IS HANDLING THE ACCOUNT USA DIRECT A UNIT OF FINGERHUT SAID THE CABLE PORTION OF ITS MEDIA BUSINESS WILL REMAIN WITH NANCY LANGSTON & ASSOCIATES PHOENIX 9312300031 931230 LEISURE & ARTS BOOKSHELF THE JUDGE'S JUDGE BY JONATHAN ZASLOFF OLIVER WENDELL HOLMES OUTLIVED VIRTUALLY ALL OF HIS CONTEMPORARIES AND EVEN AFTER HIS DEATH HE HAD A WAY OF BURYING THOSE WHO WOULD GRAPPLE WITH HIM HIS FIRST OFFICIAL BIOGRAPHER HARVARD'S MARK DEWOLFE HOWE DIED AFTER HAVING FINISHED ONLY ONE THIRD OF A PROJECTED SIXVOLUME WORK YALE'S GRANT GILMORE COULD NOT COMPLETE EVEN ONE BOOK THIS PATTERN MAKES G EDWARD WHITE'S DEEPLY THOUGHTFUL STUDY JUSTICE OLIVER WENDELL HOLMES LAW AND THE INNER SELF OXFORD UNIVERSITY PRESS 628 PAGES 3750 PARTICULARLY WELCOME AS HIS TITLE SUGGESTS THE VIRGINIA LAW SCHOOL PROFESSOR'S PROJECT CENTERS UPON CONNECTING HOLMES'S PROFESSIONAL CAREER WITH HIS INNER PSYCHE THIS EFFORT'S AMBITION IS ITSELF HOLMESIAN IN SCALE JUST AS THE YOUNG HOLMES ATTEMPTED IN HIS 1881 MASTERPIECE THE COMMON LAW TO FIND THE FUNDAMENTAL PRINCIPLES BEHIND ALL LAW FROM CONTRACT TO TORT TO CRIMINAL LAW MR WHITE ATTEMPTS TO FIND THE FUNDAMENTAL PRINCIPLES BEHIND THE LIFE AND WORK OF A MAN WHOSE JURISPRUDENCE AND PERSONALITY HAVE LONG STYMIED THOSE SEARCHING FOR CLARITY AND CONSISTENCY HOLMES REMAINS NEARLY 60 YEARS AFTER HIS DEATH THE MOST IMPORTANT FIGURE IN AMERICAN JURISPRUDENCE CURRENT SUPREME COURT JUSTICES AT TIMES APPEAR OBSESSED WITH HOLMES CITING HIS WORDS AS SELFEVIDENT TRUTHS ACADEMIC PARTISANS OF LAW AND ECONOMICS AND CRITICAL LEGAL STUDIES BATTLE FOR THE OLD MAN'S BONES EACH SCHOOL GROPING FOR SNIPPETS OF DICTA THAT SUPPORT THEIR COMPETING CLAIMS TO BE HIS TRUE INTELLECTUAL HEIRS MR WHITE WISELY SIDESTEPS THIS IDEOLOGICAL DEBATE IN FAVOR OF MORE INTIMATE GLIMPSES HE IS PARTICULARLY INSIGHTFUL WHEN DISCUSSING HOLMES'S TRANSATLANTIC AND EXTRAMARITAL ROMANCE WITH THE ANGLOIRISH NOBLEWOMAN CLARE CASTLETOWN HE NOTES THAT WHEN CORRESPONDING WITH CASTLETOWN THE LITERARY STYLIST IN HOLMES VANISHED HIS ARDOR DRIVING HIM TO IN HIS OWN WORDS WRITE LIKE A DONKEY I LONG LONG LONG FOR YOU AND THINK THINK THINK ABOUT YOU WILL DO NICELY AS AN EXAMPLE MR WHITE POINTS OUT THAT SINCE CONTROL WAS ONE OF THE LINCHPINS OF HOLMES'S CONCEPTION OF INTIMACY THE END OF THE ROMANCE IN 1903 MUST HAVE BROUGHT RELIEF TO THE JURIST IT IS LITTLE WONDER THAT HOLMES'S PERSONALITY HAS ELUDED SO MANY TO KEEP CONTROL HE TRIED TO HIDE HIS DEEPEST EMOTIONS THE ISSUE OF FREE SPEECH YIELDED MANY OF HOLMES'S MOST POWERFUL OPINIONS AND STRIKING APHORISMS MOST NOTABLY THAT FREE SPEECH DOES NOT INCLUDE THE RIGHT TO SHOUT FIRE IN A CROWDED THEATER MR WHITE SHOWS THAT HOLMES'S VIEWS ON FREE SPEECH WERE ANYTHING BUT COHERENT OFTEN RELYING ON EMOTIONAL APPEALS AND PROVIDES AN INTRIGUING EXPLANATION FOR WHY THE DISTINCTLY NONLIBERAL HOLMES WOULD HAVE HAD SUCH SOLICITUDE FOR SPEECH RIGHTS HIS OWN PASSION FOR SOLITARY PHILOSOPHIZING AND GRASPING FOR A HINT OF THE UNIVERSAL LAW HOLMES'S OTHER PASSIONS HARDLY FIT HIS LIBERAL IMAGE AN IMAGE THAT MR WHITE FOLLOWING OTHER HISTORIANS DEMOLISHES THE ONLY SOCIAL REFORM THAT ATTRACTED HIM WAS EUGENICS THREE GENERATIONS OF IMBECILES IS ENOUGH HE DECLARED IN AN OPINION PERMITTING FORCIBLE STERILIZATION OF THE MENTALLY RETARDED WHILE MR WHITE'S CONNECTIONS BETWEEN HOLMES'S JURISPRUDENCE AND HIS PSYCHE OFTEN WORK THEY ALSO YIELD THE BOOK'S BIGGEST CLUNKERS FOR INSTANCE MR WHITE ARGUES THAT HOLMES'S BOOK THE COMMON LAW IS SO CRYPTIC AND INCOMPREHENSIBLE BECAUSE ITS AUTHOR WAS ATTEMPTING TO BREAK AWAY FROM THE INFLUENCE OF HIS FAMOUS FATHER AND NAMESAKE WHOSE LITERARY WORKS WERE MODELS OF READABILITY MIGHT HOLMES'S LEGENDARY OBSCURANTISM WHICH ALSO PERVADED HIS JUDICIAL OPINIONS ACTUALLY HAVE BEEN PURPOSEFUL NIETZSCHE ONCE OBSERVED THAT EVERYTHING PROFOUND LOVES A MASK LIKE HIS GERMAN CONTEMPORARY HOLMES WAS FASCINATED BY POWER HE ARGUED REPEATEDLY THAT COERCION LIES AT THE FOUNDATION OF ALL SOCIAL LIFE AND UNDERSTOOD THAT LAW WAS NOT A REPLACEMENT FOR POWER BUT RATHER AN EXPRESSION OF IT HOLMES ALSO UNDERSTOOD THAT FOR THE JUDICIARY POSSESSING NEITHER MILITARY NOR FINANCIAL RESOURCES POWER COULD NOT BE MERE FORCE IT HAD TO BE TRANSFORMED INTO AUTHORITY AND AUTHORITY IS BEST NURTURED AS POLITICIANS HAVE LONG UNDERSTOOD THROUGH THE DEVELOPMENT OF MYSTIQUE WHAT MIGHT BETTER PRODUCE JUDICIAL MYSTIQUE THAN RHETORICALLY POWERFUL YET SIMULTANEOUSLY CRYPTIC OPINIONS THE MOST POWERFUL ORACLES ARE OF COURSE DELPHIC MR WHITE CONCLUDES THAT HOLMES WAS DRIVEN BY HIS VAST AMBITION FOR RECOGNITION AND AUTHORITY AND CHRONICLES HOLMES'S ENDLESS EFFORTS TO MAGNIFY HIS REPUTATION IT WORKED SINCE HIS NATIONWIDE RADIO ADDRESS ON HIS 90TH BIRTHDAY IN 1931 HE HAS BEEN TRANSFORMED FROM EMINENT JURIST INTO CULTURAL ICON HOW MANY OTHER JUDGES HAVE HAD A BROADWAY SHOW WRITTEN ABOUT THEM THE MAGNIFICENT YANKEE HOLMES SEEPS THROUGH THE CULTURE NEW JERSEY'S MEADOWLANDS HOSTS THE OLIVER WENDELL HOLMES PACE IN A MISTAKEN BELIEF THAT HE WAS FROM THE GARDEN STATE MOST PEOPLE KNOW THE EXPRESSION CLEAR AND PRESENT DANGER AT LEAST FROM THE TOM CLANCY NOVEL AS MUCH AS ANY JUDGE HOLMES IS REVERED BY THE PUBLIC WHOM HE HELD IN CONTEMPT AND AS MUCH AS ANY JUDGE THE CYNICAL HOLMES WOULD SURELY APPRECIATE THE IRONY MR ZASLOFF IS A LAW CLERK AT THE US COURT OF APPEALS IN BOSTON 9312300030 931230 SMALL STOCK FOCUS ENDOFYEAR BUYING PUSHES UP STOCKS AS INVESTORS TOUCH UP THEIR PORTFOLIOS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SELECTIVE ENDOFYEAR BUYING TOOK SMALLCOMPANY STOCKS HIGHER BUT VOLUME WAS RELATIVELY SPARSE AHEAD OF THE HOLIDAY WEEKEND TRADERS SAID GAINS WERE DIFFICULT TO TIE TO ANY GROUP MOST STOCKS MOVED INDIVIDUALLY AS MANY INSTITUTIONAL AND RETAIL INVESTORS CONTINUED TO TOUCH UP THEIR PORTFOLIOS BEFORE 1994 BEGINS THE RUSSELL 2000 INDEX WHICH MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES JUMPED 228 POINTS OR 090 TO FINISH AT 25602 ITS FOURTH STRAIGHT ADVANCE ON NASDAQ THE COMPOSITE INDEX GAINED 392 POINTS OR 051 TO FINISH AT 76848 NASDAQ NATIONAL MARKET VOLUME ROSE TO 218353600 SHARES FROM 197171200 TUESDAY TOTAL VOLUME STOOD AT 266385000 SHARES UP FROM 247610000 TUESDAY ADVANCING STOCKS OUTRAN DECLINERS 1728 TO 1272 YESTERDAY MARKED THE SECOND CONSECUTIVE SESSION IN WHICH SMALLER STOCKS OUTPERFORMED LARGER ISSUES AFTER LAGGING BEHIND THE BIG CYCLICALS SINCE EARLY NOVEMBER ALTHOUGH THE BIG BOARD'S DOW JONES INDUSTRIAL AVERAGE SQUEAKED OUT ANOTHER RECORD YESTERDAY EDGING UP 056 TO 379433 THE ADVANCE REPRESENTED ONLY A 001 INCREASE STRONG DECEMBER ORDERS AND GENERALLY FAVORABLE DEMAND THROUGHOUT THE SEMICONDUCTOR INDUSTRY PUSHED SANTA CLARA CALIFBASED INTEGRATED DEVICE TECHNOLOGY'S STOCK PRICE UP FOR A SECOND STRAIGHT DAY AN ANALYST SAID THE COMPANY'S SHARES IMPROVED 1 1/4 TO 16 5/8 AFTER RISING 1 1/4 TUESDAY MGI PHARMA MINNEAPOLIS ROSE 2 TO 14 1/2 THE DRUG COMPANY SAID IT RECEIVED AN APPROVABLE LETTER FOR ITS SALAGEN TABLETS FROM THE FOOD AND DRUG ADMINISTRATION THE TABLETS WHICH HELP TREAT RADIATIONINDUCED DRY MOUTH IN HEAD AND NECK CANCER PATIENTS WILL BE CLEARED FOR MARKETING BY THE FDA AFTER THE COMPANY SUBMITS A SAFETY UPDATE REPORT AND PRODUCT LABELING IS COMPLETED CYGNUS THERAPEUTIC SYSTEMS GAINED 1 1/4 TO 11 1/8 THE WALL STREET JOURNAL REPORTED YESTERDAY THAT THE REDWOOD CITY CALIFBASED PHARMACEUTICALS COMPANY AND AMERICAN HOME PRODUCTS' WYETHAYERST UNIT PLAN TO JOINTLY DEVELOP AND SELL FIVE PRODUCTS THAT USE TRANSDERMAL PATCHES CHIEFLY FOR THE 17 BILLION HORMONEREPLACEMENT MARKET COMPUTER RETAILER COMPUSA DALLAS ADDED 1 1/2 TO 20 3/4 ON THE BIG BOARD THE COMPANY SAID FISCAL SECONDQUARTER SALES ROSE 65 TO 537 MILLION SAMESTORE SALES FOR DECEMBER CLIMBED 115 AND TOTAL SALES FOR THE FIRST HALF OF FISCAL 1994 INCREASED 66 SMITHFIELD FOODS CLIMBED 2 1/4 TO 18 3/4 PART OF THE MOVE HIGHER WAS ATTRIBUTED TO PUBLICITY SURROUNDING THE SHORTINTEREST POSITION IN THE SMITHFIELD VA COMPANY'S STOCK SEPARATELY SMITHFIELD FOODS CHIEF FINANCIAL OFFICER AARON D TRUB SAID HE BACKS ANALYSTS' FISCAL THIRDQUARTER EARNINGS ESTIMATES OF 35 CENTS A SHARE A YEAR EARLIER THE COMPANY POSTED NET INCOME OF TWO CENTS A GROUP OF STOCKS SHOT HIGHER AFTER CNBC FINANCIAL CORRESPONDENT DAN DORFMAN QUOTED AN ANALYST'S POSITIVE COMMENTS ON THE SMALL COMPANIES ANIKA RESEARCH WOBURN MASS CLIMBED 1 1/4 TO 4 1/4 PHOENIX NETWORK A SAN FRANCISCO PROVIDER OF LONGDISTANCE TELEPHONE SERVICES WAS UP 15/16 TO 5 7/8 ON THE AMERICAN STOCK EXCHANGE COMMAND CREDIT ROCKVILLE CENTRE NY IMPROVED 5/32 TO 17/32 INNOVEX A HOPKINS MINN MAKER OF ELECTROMAGNETIC PRODUCTS INCREASED 1 1/2 TO 12 1/4 AND MANAGEMENT TECHNOLOGIES A NEW YORK SOFTWARE CONCERN CREPT 5/32 HIGHER TO 11/16 DORFMAN REPORTED THAT TOM FENDRICH OF FENDRICH ASSOCIATES INSTITUTIONAL RESEARCH DESCRIBED THE GROUP AS FIVE PEEWEE STOCKS THAT WILL PERFORM WELL NEXT YEAR BUT OTHERS EXTENDED THEIR RECENT STRONG ADVANCE CHINA FUND JUMPED 1 1/2 TO 27 1/2 AND SINGAPORE FUND MOVED UP 1 1/2 TO 24 7/8 A NOTABLE DECLINER WAS ADVANCED MARKETING SERVICES WHICH DROPPED 1 1/4 TO 4 3/4 THE SAN DIEGO SUPPLIER OF BOOKS TO MEMBERSHIP WAREHOUSE CLUBS SAID IT EXPECTS FISCAL THIRDQUARTER REVENUE AND EARNINGS TO FALL BELOW THE FIGURES REPORTED FOR THE YEAREARLIER PERIOD BASED ON LOWERTHANEXPECTED SALES AND A HIGHER RATE OF CUSTOMER BOOK RETURNS NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 106 WHILE 31 HIT NEW LOWS 9312300029 931230 BUSINESS BRIEF GENERAL NUTRITION COS FIRM BACKS PROFIT ESTIMATES FOR FISCAL FOURTH QUARTER GENERAL NUTRITION COS CHIEF EXECUTIVE OFFICER WILLIAM E WATTS CITING A FASTPACE EXPANSION PROGRAM SAID IN AN INTERVIEW HE IS VERY COMFORTABLE WITH ANALYSTS' ESTIMATES THAT THE COMPANY WILL EARN 22 CENTS A SHARE IN THE FOURTH QUARTER ENDING FEB 5 IN THE YEAREARLIER PERIOD GENERAL NUTRITION A SPECIALTY RETAILER OF VITAMINS AND MINERAL SUPPLEMENTS PERSONAL CARE AND FITNESS PRODUCTS IN PITTSBURGH RECORDED NET INCOME OF 117000 OR A LOSS OF FOUR CENTS A SHARE AFTER PREFERRED STOCK DIVIDEND REQUIREMENTS MR WATTS ALSO SAID HE IS COMFORTABLE WITH ESTIMATES THE COMPANY WILL EARN 72 CENTS A SHARE FOR THE YEAR AND 1 A SHARE IN FISCAL 1995 IN FISCAL 1993 GENERAL NUTRITION EARNED 22 MILLION OR A LOSS OF 12 CENTS A SHARE AFTER PAYMENT OF PREFERRED STOCK DIVIDENDS 9312300028 931230 BUSINESS BRIEFS DUKE ENERGY CORP A UNIT OF DUKE POWER CO WILL OPEN A HONG KONG OFFICE IN JANUARY TO CONCENTRATE ON ELECTRICPOWER OPPORTUNITIES IN THE PACIFIC RIM AND CHINA MILESTONE MORTGAGE CORP A UNIT OF MILESTONE PROPERTIES INC HAS RECEIVED A 45 MILLION CREDIT COMMITMENT FROM NOMURA ASSET CAPITAL CORP NEW VALLEY CORP'S WESTERN UNION FINANCIAL SERVICES INC UNIT BEGAN OFFERING MONEYTRANSFER SERVICE BETWEEN THE US AND LEBANON STEWART ENTERPRISES INC SIGNED LETTERS OF INTENT TO ACQUIRE SIX CEMETERIES AND THREE FUNERAL HOMES IN TENNESSEE SOUTH CAROLINA AND NORTH CAROLINA CAMDEN PROPERTY TRUST ACQUIRED FIVE APARTMENT COMMUNITIES IN DALLAS HOUSTON SAN ANTONIO CORPUS CHRISTI AND EL PASO TEXAS FOR 315 MILLION 9312300027 931230 BUSINESS BRIEF REGAL COMMUNICATIONS CORP FIRM TO REPORT LOSS TOTALED 195 MILLION FOR FISCAL '93 REGAL COMMUNICATIONS CORP FORT WASHINGTON PA SAID IT WILL POST A 195 MILLION LOSS FOR FISCAL 1993 ENDED SEPT 30 AND THAT ITS YEAREND AUDIT WILL BE DELAYED FOR 1992 THE COMPANY REPORTED EARNINGS OF 970000 THE LOSS STEMS FROM REGAL'S DECISION TO CLOSE ITS 900LINE TELEPHONE BUSINESS AND WRITE OFF THE ASSETS AND UNCOLLECTIBLE BILLS FROM THE PHONE SERVICE THE COMPANY SAID HOWEVER THAT EARNINGS IN 1994 WILL MORE THAN OFFSET 1993 LOSSES WITH FIRSTQUARTER EARNINGS ESTIMATED AT MORE THAN 4 MILLION AFTER TAXES REGAL ALSO NAMED IVAN INERFELD CHIEF OPERATING OFFICER AND INTERIM CHIEF FINANCIAL OFFICER MR INERFELD WAS CHIEF OPERATING OFFICER FOR INTERNATIONAL THOMSON BUSINESS PRESS AND A PARTNER AT COOPERS & LYBRAND REGAL ONE OF THE NATION'S LARGEST MAKERS OF INFOMERCIALS EARLIER IN 1993 ACQUIRED JOAN RIVERS PRODUCTS INC FOR ABOUT 14 MILLION IN REGAL STOCK 9312300026 931230 BUSINESS BRIEF WETTERAU PROPERTIES INC REIT TENTATIVELY AGREES TO ACQUISITION BY SUPERVALU WETTERAU PROPERTIES INC SAID IT TENTATIVELY AGREED TO SELL ALL ITS ASSETS TO SUPERVALU INC AT A PRICE THAT WOULD PERMIT THE COMPANY TO PAY A NET LIQUIDATING DIVIDEND OF 20 A SHARE TO STOCKHOLDERS THE ST LOUIS REAL ESTATE INVESTMENT TRUST SAID THE LETTER OF INTENT WITH THE BIG MINNEAPOLIS FOOD DISTRIBUTOR IS SUBJECT TO NEGOTIATION OF A DEFINITIVE PACT APPROVAL BY WETTERAU SHAREHOLDERS AND LENDERS AND REGULATORY CLEARANCE THE NEWS WAS DISCLOSED AFTER THE MARKET'S CLOSE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY WETTERAU SHARES CLOSED OFF 75 CENTS AT 1925 WETTERAU OWNS 29 PROPERTIES ON 376 ACRES OF LAND WITH JUST UNDER 14 MILLION SHARES OUTSTANDING THE 20ASHARE LIQUIDATING DIVIDEND WOULD REPRESENT ABOUT 279 MILLION OFFICIALS FOR BOTH COMPANIES WERE UNAVAILABLE FOR COMMENT 9312300025 931230 BUSINESS BRIEF GERAGHTY & MILLER INC ACQUISITION BY HEIDEMIJ GETS APPROVAL BY STOCKHOLDERS GERAGHTY & MILLER INC SAID THAT STOCKHOLDERS APPROVED A PLAN THAT ALLOWED THE COMPANY TO BE ACQUIRED BY HEIDEMIJ NV A DUTCH ENVIRONMENTAL CONSULTING AND ENGINEERING FIRM UNDER THE AGREEMENT EACH SHARE OF GERAGHTY & MILLER A PLAINVIEW NY ENVIRONMENTAL ENGINEERING AND CONSULTING FIRM WAS EXCHANGED FOR ABOUT 109 SHARES OF HEIDEMIJ COMMON STOCK FINANCIAL TERMS WEREN'T DISCLOSED HEIDEMIJ NOW HAS ABOUT 185 MILLION SHARES OUTSTANDING THE ACQUISITION GIVES HEIDEMIJ ACCESS TO US EQUITY MARKETS THROUGH GERAGHTY & MILLER'S PREVIOUS NASDAQ STOCK MARKET LISTING THE NEW COMPANY WITH ESTIMATED COMBINED REVENUE OF 350 MILLION BEGINS TRADING UNDER THE SYMBOL HEIDF TODAY DAVID W MILLER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF GERAGHTY & MILLER WILL BECOME THE THIRD MEMBER OF HEIDEMIJ'S EXECUTIVE BOARD TWO OUTSIDE DIRECTORS OF GERAGHTY & MILLER WILL BE APPOINTED TO HEIDEMIJ'S SUPERVISORY BOARD INCREASING ITS SIZE TO SEVEN MEMBERS 9312300024 931230 WHO'S NEWS ZALE HIRES POLLOCK AS PRESIDENT CEO TO BE NAMED SOON DALLAS ZALE CORP HIRED A LONGTIME JEWELRY EXECUTIVE AS ITS PRESIDENT AND CHIEF OPERATING OFFICER THE NATION'S LARGEST JEWELRY RETAILER SAID IT IS CLOSE TO NAMING A CHAIRMAN AND CHIEF EXECUTIVE AFTER SEARCHING FOR ALMOST FIVE MONTHS THE TOP POSTS AT ZALE HAVE BEEN VACANT SINCE EARLY AUGUST WHEN DEAN GROUSSMAN WAS FORCED OUT AS CHAIRMAN AND CEO BY THE COMPANY'S NEWLY INSTALLED BOARD TWO BUSINESS DAYS AFTER ZALE EMERGED FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS SINCE MR GROUSSMAN'S DEPARTURE DAYTODAY OPERATIONS HAVE BEEN OVERSEEN BY THE COMPANY'S CHIEF FINANCIAL OFFICER ANDREAS LUDWIG 34 YEARS OLD YESTERDAY ZALE SAID MR LUDWIG A NATIVE OF AUSTRIA WILL LEAVE THE COMPANY JAN 14 TO BECOME MANAGING DIRECTOR OF TYROLIT INDUSTRIES A HEAVYINDUSTRY MANUFACTURER OWNED BY AUSTRIA'S SWAROVSKI GROUP HE JOINED ZALE IN 1991 FROM SWAROVSKI WHICH WAS THEN HALFOWNER OF THE RETAILER ZALE YESTERDAY NAMED LARRY POLLOCK 46 PRESIDENT AND CHIEF OPERATING OFFICER MR POLLOCK IS JOINING ZALE FROM KARTENS JEWELERS OF NEW BEDFORD MASS WHERE HE IS PRESIDENT AND CEO BEFORE HEADING KARTENS MR POLLOCK WAS PRESIDENT AND CEO OF JB ROBINSON JEWELERS INC FROM 1981 TO 1986 WHEN IT WAS A UNIT OF WR GRACE & CO RICHARD MARCUS A ZALE DIRECTOR SAID THE BOARD EXPECTS TO NAME SOMEONE TO BE CHAIRMAN AND CEO SOON AFTER THE BEGINNING OF THE YEAR IN NASDAQ STOCK MARKET TRADING YESTERDAY ZALE CLOSED AT 850 UP 125 CENTS THE COMPANY MADE ITS ANNOUNCEMENT AFTER THE MARKET CLOSED EARLY THIS MONTH ZALE SAID IT DIDN'T EXPECT TO MEET PROJECTIONS OF 61 MILLION TO 66 MILLION IN OPERATING PROFIT FOR ITS FISCAL YEAR WHICH ENDS IN MARCH MR LUDWIG SAID ZALE HAD A STRONG CHRISTMAS BUSINESS WITH A PERCENTAGE INCREASE IN SAMESTORE SALES IN THE MIDDLE SINGLE DIGITS 9312300023 931230 BUSINESS BRIEF ADVANCED MARKETING SERVICES INC BIG PROFIT DROP TO BE POSTED FOR THE FISCAL THIRD QUARTER ADVANCED MARKETING SERVICES INC IN SAN DIEGO SAID IT EXPECTS EARNINGS FOR THE THIRD QUARTER ENDED DEC 25 TO BE AS MUCH AS 60 BELOW YEARAGO LEVELS PRESIDENT CHARLES C TILLINGHAST III SAID THAT BASED ON PRELIMINARY RESULTS HE EXPECTS THIRDQUARTER EARNINGS TO BE IN THE 20 TO 30 CENTS RANGE COMPARED WITH 52 CENTS A SHARE A YEAR AGO WHILE MR TILLINGHAST DIDN'T FORECAST REVENUE HE SAID THAT HIGHER RETURN RATES AT ITS MAJOR CUSTOMER LOCATIONS IN DECEMBER INDICATE THAT RETAIL SALES WERE BELOW EXPECTATIONS THE QUARTERLY EARNINGS ESTIMATE ACCORDING TO MR TILLINGHAST INCLUDES A RESERVE OF THREE CENTS A SHARE AGAINST A POSSIBLE ONETIME INCREASE IN RETURNS DURING 1994 AS A RESULT OF CONSOLIDATION AMONG WAREHOUSE CLUBS SHARES FOR THIS DISTRIBUTOR OF BOOKS TO WAREHOUSE CLUBS AND OFFICEPRODUCT SUPERSTORES CLOSED YESTERDAY AT 475 A SHARE DOWN 125 OR 208 IN TRADING ON THE NASDAQ STOCK MARKET 9312300022 931230 ABREAST OF THE MARKET INDUSTRIALS INCH UP TO NEW HIGH BUT STOCKS' GENERAL TONE IS MIXED BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE INCHED UP TO A THIRD STRAIGHT RECORD BUT STUMBLED JUST SHORT OF THE 3800 MARK THE INDUSTRIAL AVERAGE CLIMBED TO WITHIN A HAIR'S BREADTH OF THE MILESTONE TWICEMISSING BY LESS THAN ONEHALF POINT IN EARLY TRADINGBEFORE FINISHING WITH A GAIN OF 056 OR 001 TO 379433 BUT ANALYSTS SAID THEY EXPECT A MOVE OVER 3800 PERHAPS AS SOON AS TODAY BUYING TIED TO THE END OF THE YEAR AS PORTFOLIO MANAGERS SPRUCE UP THEIR HOLDINGS SHOULD BE ENOUGH TO HOIST THE AVERAGE THEY SAID YESTERDAY THOUGH LASTMINUTE TRADING LEFT THE MARKET MIXED THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EDGED UP TO A SECOND STRAIGHT NEW HIGH GAINING 017 OR 007 TO 26067 WHILE GAINERS LED LOSERS BY 1170 TO 859 ON THE BIG BOARD SOME OTHER MAJOR BAROMETERS FELL THE STANDARD & POOR'S 500 STOCK INDEX WAS DOWN 036 OR 008 TO 47058 AND THE DOW JONES EQUITY MARKET INDEX EASED 026 OR 006 TO 44560 BOTH SET RECORDS TUESDAY THE NASDAQ STOCK MARKET MEANWHILE OUTPERFORMED THE BIG BOARD FOR A SECOND DAY FOLLOWING A HISTORIC PATTERN OF STRENGTH AT THIS TIME OF THE YEAR THE NASDAQ COMPOSITE INDEX CLIMBED 392 OR 051 TO 76848 BIG BOARD VOLUME WAS MODERATELY ACTIVE AT 2693 MILLION SHARES UP FROM 201 MILLION TUESDAY ABOUT 18 OF YESTERDAY'S VOLUME WAS IN TWO STOCKS SCECORP AND AMERITECH THE ACTIVITY WAS SAID TO BE LINKED TO TRADING STRATEGIES KEYED TO DIVIDENDS EACH COMPANY WILL PAY EARLY NEXT YEAR SCECORP LOST 1/2 TO 21 ON 289 MILLION SHARES AMERITECH WAS UNCHANGED AT 79 3/8 ON 202 MILLION SHARES ELSEWHERE UAL THE PARENT OF UNITED AIRLINES DROPPED 2 1/8 TO 146 AND DELTA AIR LINES SLUMPED 1 TO 54 5/8 MERRILL LYNCH CUT ITS INTERMEDIATETERM INVESTMENT RATING ON UAL TO NEUTRAL FROM BUY PRUDENTIAL DOWNGRADED DELTA TO HOLD FROM BUY LOSSES IN AIRLINE STOCKS HELPED PUSH THE DOW JONES TRANSPORTATION AVERAGE DOWN 429 OR 024 TO 177132 THE AVERAGE WAS DOWN MORE THAN TWICE THAT MUCH INTRADAY IT CLOSED AT A RECORD TUESDAY ROADWAY SERVICES SLIPPED 1 3/4 TO 60 ON NASDAQ CONTINENTAL AIRLINES CLASS B SHARES THOUGH BUCKED THE TREND IN THE AIRLINE GROUP GAINING 1 3/4 TO 20 3/8 KIDDER PEABODY INITIATED COVERAGE OF THE COMPANY WITH A STRONG BUY OPINION SHARES OF THE MAJOR OIL PRODUCERS WERE MOSTLY LOWER EXXON DROPPED 3/8 TO 63 5/8 CHEVRON 7/8 TO 88 ATLANTIC RICHFIELD 1 1/2 TO 104 1/8 AND AMOCO 3/8 TO 53 1/4 OIL FIELD SERVICES STOCKS ROSE THOUGH HALLIBURTON WAS UP 1 3/8 TO 32 3/4 AND BAKER HUGHES CLIMBED 1/4 TO 20 1/4 MAXUS ENERGY MEANWHILE ADDED 5/8 TO 5 5/8 SALOMON BROTHERS RAISED ITS INVESTMENT RATING ON THE OIL AND GAS PRODUCER'S SHARES TO BUY FROM HOLD BALL CORP EASED 3/8 TO 30 5/8 SALOMON BROTHERS ANALYST DAN KHOSHABA DOWNGRADED THE STOCK TO HOLD FROM BUY AFTER CLIMBING FROM A LATEOCTOBER LOW OF 25 1/8 SHARES OF THE METAL AND GLASS PACKAGING MAKER NOW ARE FAIRLY VALUED MR KHOSHABA SAID AMERICAN DEPOSITARY RECEIPTS OF BANCO BILBAO VIZCAYA FELL 1 TO 21 3/4 AFTER DROPPING 1 1/4 TUESDAY ALFREDO SAENZ ABAD AN OFFICER OF THE SPANISH BANK WAS NAMED BY THE SPANISH CENTRAL BANK TO BE CHAIRMAN OF BANCO ESPANOL DE CREDITO A TROUBLED COMMERCIAL BANK SOME HAVE SPECULATED THAT BANCO BILBAO WILL ACQUIRE THE OTHER COMPANY LANDS' END JUMPED 2 TO 46 3/4 A SPOKESWOMAN FOR THE MAILORDER APPAREL RETAILER SAID THE COMPANY DIDN'T KNOW OF ANY REASON FOR THE GAIN ANALYSTS SAID SOME INVESTORS MIGHT HAVE BEEN SPECULATING THAT LANDS' END HAD GOOD CHRISTMAS SALES OTHER RETAILERS WERE MIXED SEARS ROEBUCK ROSE 1 3/4 TO 53 5/8 AND GAP ADVANCED 3/8 TO 41 3/8 BUT JC PENNEY FELL 1 1/2 TO 53 3/8 AND CONSOLIDATED STORES DROPPED 1 5/8 TO 19 7/8 AMGEN CONTINUED TO RALLY FOLLOWING A FAVORABLE ARTICLE IN THIS WEEK'S BARRON'S MAGAZINE THE BIOTECHNOLOGY STOCK ROSE 1 1/8 TO 50 7/8 ON NASDAQ IT INCREASED 1 1/2 TUESDAY AND 1 3/4 ON MONDAY BORDEN ADDED 1/4 TO 17 1/8 THE HEARD ON THE STREET COLUMN IN YESTERDAY'S WALL STREET JOURNAL HIGHLIGHTED SPECULATION THAT THE FOOD COMPANY WILL SEEK A BUYER FEW ANALYSTS THOUGH THINK THE COMPANY WILL FETCH AS MUCH AS ITS DIRECTORS HOPE THERE ARE A LOT OF YEAREND CROSSCURRENTS SAID ERIC MILLER MARKET STRATEGIST AT DONALDSON LUFKIN & JENRETTE IT'S HARD TO SAY THERE IS A REAL TREND I THINK MORE AND MORE PEOPLE ARE GEARING DOWN FOR THE UPCOMING WEEKEND HE ADDED MOST PORTFOLIO MANAGERS HAVE MADE THEIR BIG MOVES AHEAD OF THE YEAR END AND ALL THAT IS LEFT IS SOME MINOR TINKERING SAID RICKY HARRINGTON A TECHNICAL ANALYST AT INTERSTATE/JOHNSON LANE HE DOESN'T EXPECT ANY MAJOR MOVES IN SHARE PRICES IN EITHER DIRECTION TODAY OR TOMORROW 9312300021 931230 GRANCARE BUYS COMPUPHARM CULVER CITY CALIF GRANCARE INC AN OPERATOR OF LONGTERM CARE FACILITIES SAID IT COMPLETED THE ACQUISITION OF COMPUPHARM INC FOR 53 MILLION IN GRANCARE STOCK GRANCARE ALSO ASSUMED ABOUT 16 MILLION OF COMPUPHARM DEBT GRANCARE SAID IT PLANS TO RETAIN THE SENIOR MANAGEMENT OF COMPUPHARM A CLOSELY HELD PROVIDER OF PHARMACY SERVICES IN WHIPPANY NJ 9312300020 931230 PRUDENTIAL UNIT GENERAL COUNSEL IS SAID TO BE INCLUDED IN PARTNERSHIP PROBE BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE US ATTORNEY'S OFFICE IN MANHATTAN IS INVESTIGATING THE ACTIVITIES OF PRUDENTIAL SECURITIES INC'S GENERAL COUNSEL AS PART OF A PROBE OF THE FIRM'S PARTNERSHIP PRACTICES ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER PROSECUTORS ARE EXAMINING WHAT INFORMATION LOREN SCHECHTER THE GENERAL COUNSEL HAD ABOUT WRONGDOING IN THE BROKERAGE FIRM'S LIMITEDPARTNERSHIP GROUP IN THE 1980S THE PEOPLE SAID PROSECUTORS ALREADY ARE TRYING TO DETERMINE WHETHER ANY ILLEGAL PAYMENTS WERE MADE TO PRUDENTIAL SECURITIES EMPLOYEES BY PARTNERSHIP SPONSORS THE INVESTIGATION OF MR SCHECHTER BROADENS THE SCOPE OF THE INVESTIGATION INTO THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT AND IT POSES A POTENTIALLY EMBARRASSING SITUATION FOR THE FIRM BECAUSE MR SCHECHTER WAS PRUDENTIAL'S POINT MAN IN NEGOTIATING A MAJOR PARTNERSHIP SETTLEMENT WITH GOVERNMENT 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 '80S IN SETTLING THE CASE PRUDENTIAL AGREED TO PAY AT LEAST 330 MILLION INTO A REPARATIONS FUND FOR INVESTORS MANY INVESTORS HAVE COMPLAINED THAT THEY WERE MISLED ABOUT THE PARTNERSHIPS' RISKS AND RETURNS MR SCHECHTER COULDN'T BE REACHED FOR COMMENT LAST NIGHT WILLIAM AHEARN A PRUDENTIAL SECURITIES SPOKESMAN SAID WE HAVE BEEN COOPERATING WITH THE US ATTORNEY BUT FROM THE FIRM'S STANDPOINT THERE REALLY HAVEN'T BEEN ANY NEW DEVELOPMENTS KENNETH VIANALE AN ASSISTANT US ATTORNEY IN THE CASE DECLINED TO COMMENT PROSECUTORS HAVE BEEN QUESTIONING FORMER PRUDENTIAL BROKERS AND OTHERS SEEKING EVIDENCE OF WRONGDOING BY SEVERAL TOP PRUDENTIAL SECURITIES OFFICIALS IN SETTING UP AND SELLING LIMITED PARTNERSHIPS IN THE 1980S THE CRIMINAL INVESTIGATION HAS SO FAR CENTERED ON THE ACTIVITIES OF PRUDENTIAL'S PARTNERSHIP GROUP PARTICULARLY JAMES DARR ITS FORMER PARTNERSHIP CHIEF AND J FREDERIC STORASKA A FORMER HIGHFLYING PARTNERSHIP BROKER THE PEOPLE SAID SEVERAL FORMER TOP PRUDENTIAL EXECUTIVES INCLUDING MR SCHECHTER HAVE BEEN ADVISED TO RETAIN LAWYERS IN THE MATTER THE PEOPLE SAID BUT THEY SAID THAT AMONG THOSE WHO AREN'T ACTIVELY BEING INVESTIGATED IS FORMER PRUDENTIAL SECURITIES CHIEF EXECUTIVE GEORGE BALL AS PREVIOUSLY REPORTED THE SEC IS CONSIDERING FILING CIVIL ADMINISTRATIVE PROCEEDINGS AGAINST AS MANY AS 15 CURRENT AND FORMER PRUDENTIAL SECURITIES EMPLOYEES PEOPLE FAMILIAR WITH THE MATTER SAID AT LEAST 11 FORMER EXECUTIVES AND BROKERS HAVE BEEN INFORMED BY SEC LAWYERS THAT THE AGENCY'S STAFF IS RECOMMENDING THAT THEY BE CHARGED WITH FAILING TO SUPERVISE WAYWARD BROKERS UNDER THEIR WATCH BUT MESSRS BALL AND SCHECHTER SO FAR ARE NOT AMONG THOSE EXECUTIVES THE PEOPLE FAMILIAR WITH THE SEC MATTER SAID 9312300019 931230 LEISURE & ARTS THE MOBILE GUIDE ROUGHING IT IN SULAWESI LOOKING FOR LEMURS BY KAREN SWENSON MENADO INDONESIA THE INDONESIAN ISLAND OF SULAWESI IS COMPOSED OF AN ARRANGEMENT OF POTHOOKED PENINSULAS WHICH LOOKS LIKE AN ORCHID OR A MAIMED STARFISH IT USED TO BE KNOWN AS THE CELEBES THE ISLAND HOME OF THE SUICIDAL HEROINE OF MAXWELL ANDERSON'S WINGLESS VICTORY MENADO ITS NORTHERNMOST LARGE TOWN HAS AMONG ITS ATTRACTIONS SOME OF THE BEST REEFS FOR DIVING IN THE WORLD FULL OF ANEMONES WAVING THEIR PALE HAIR IN THE CURRENT BESIDE YELLOW AND BLUE SEA SQUIRTS THAT ROLL GENTLY ON THE PALE SAND THERE ARE ALSO THE TOWNS OF AIRMADIDI AND SAWANGAN FRAGRANT WITH DRYING CLOVES WHERE PRECHRISTIAN GRAVES WITH STONE UPSWEPT ROOFS CAP TOMBSTONES IN WHICH THE DEAD ARE BURIED IN A SQUATTING POSITION SURROUNDED BY THEIR HOUSEHOLD POSSESSIONS ABOUT THREE HOURS FROM MENADO IS THE TANGKOKOBATUANGUS RESERVE AN ATTEMPT TO PRESERVE THE JUNGLE AND ITS INHABITANTS INDIGENOUS HORNBILLS LEMURS CUSCUS ANOA MALEO BIRDS AND BLACK MACAQUES TRANSPORT FROM MENADO TO BITUNG IS BY BEMO A FLATBED TRUCK FITTED WITH TWO LONG WOODEN BENCHES ALONG THE SIDES ONCE THE BENCHES ARE FILLED YOU EITHER SQUAT BETWEEN THEM A PARTICULARLY EXCRUCIATING FORM OF TORTURE FOR WESTERNERS OR SIT ON TINY THREELEGGED STOOLS I ENDED UP MASHED INTO THE BACK ON A STOOL AMONG THREE MEN ALL OF US PRETENDING THAT NONE OF OUR BODY PARTS WERE TOUCHING THE VIEWS OF THE VOLCANO KLABAT WERE OF THE PICTURE POSTCARD VARIETY AS WERE THOSE OF THE SEA AS WE CAME DOWN INTO BITUNG WHERE I CHANGED FOR THE BEMO TO GIRIAN WHERE I CHANGED AGAIN FOR THE JEEP TO BATU PUTIH THE JEEP RIDE STARTED OUT CALMLY ENOUGH ON A PAVED ROAD AND THEN DISINTEGRATED INTO A HAIRRAISER OVER BLACK VOLCANIC SAND WHICH PITCHED ME AND MY FELLOW PASSENGERS INTO EACH OTHERS ARMS LEGS AND LAPS FROM WHERE WE LOOKED UP AT HUGE TREES SIXFOOT GRASSES TANGLES OF JUNGLE CROSSING OVER OUR HEADS CAR SICKNESS WIPED OUT MOST OF MY FELLOW PASSENGERS WHILE I WATCHED THE SCENERY AND THE OCCASIONAL PEDESTRIAN WITH A PLASTIC PAIL ON HER HEAD OR BASKET ON HIS BACK AT THE END OF THE JOURNEY WAS A SMALL WOVEN BAMBOO HUT CONTAINING A BED AND A TABLE ON A TERRACE LOOKING OUT OVER THE RIVER THERE WOMEN WASHED CLOTHES OR THEMSELVES GEESE SQUAWKED A TROOP OF PIGLETS PRANCED BACK AND FORTH FOLLOWING EACH OTHER'S CORKSCREW TAILS WHILE TWO YELLOW AND BLACK BUTTERFLIES DANCED OVER THE CURRENT RUNNING IN ITS BED BLACK AS JET A DOG IN AN EXCESS OF GLEE RACED UP AND DOWN THE EMBANKMENT IN THE AFTERNOON WE WENT OUT INTO THE JUNGLE WITH OUR GUIDE TULENDE WODI A SMALL MAN WITH LEGS AS FURRY AS A TARANTULA'S AND A SUPERB GROWTH OF MOUSTACHE HE STEERED US AWAY FROM THE WEBS IN WHICH SPIDERS THE SIZE OF TEA SAUCERS HUNG LIKE BLACK HOLES ON THEIR NETS TURNED SILVER BY THE SUNLIGHT BIG GREEN BUGS WITH GRAY SPLOTCHES ON THEIR BACKS TRUNDLED AMONG THE GREAT GRAY FLANGES OF TREE ROOTS HE WARNED US TO PULL OUR SOCKS UP OVER OUR TROUSER CUFFS BECAUSE OF CHIGGERS WE MOVED AS QUIETLY AS SIX PEOPLE CAN AND WERE REWARDED BY THE SIGHT OF A MALE AND FEMALE CELEBES HORNBILL LIKE FASHIONABLE NEW YORK WOMEN THEY USED THEIR BASIC BLACK AS BACKGROUND FOR OUTRAGEOUS COLOR AGAINST THE SHEEN OF BLACK FEATHERS THEY WERE ADORNED WITH A YELLOW BILL TOPPED BY AN ORANGE HORN PRIMA BALLERINAS THEY CIRCLED THEIR EYES WITH BLUE BUT ADDED YELLOW BELOW THEIR CALL IS LIKE A DOG'S BARK THEY ARE ENORMOUS AND THE EFFORT THEY MAKE GETTING INTO FLIGHT IS FULL OF LABORIOUS FLAPPINGS THAT SOUND LIKE A BIG WIND HITTING CANVAS THE NEXT MORNING AT 4 AM WE TRIED TO SEE SOME TARSIERS LEMURS BUT WERE NOT SUCCESSFUL WE WALKED THE PATH UNTIL IT ENDED ON A BLACK VOLCANIC SAND BEACH WHERE A BOAT PICKED US UP AND TOOK US ALONG THE SHORE SUNBIRDS WENT SCUDDING BY IN SMALL FLOCKS AND UNDER US CRABS MOVED ABOUT LIKE DAINTY OLD LADIES ON CANES AS WE CAME AROUND A SMALL PENINSULA WE SAW A TROOP OF SEVEN BLACK MACAQUES TAILLESS BLACK APES WITH BAR PATCHES ON THEIR BOTTOMS AND A RUFF AROUND THEIR NECKS ONE CLIMBED OUT ON A LIMB OVER THE WATER TO KEEP AN EYE ON US AS WE WENT BY AT OUR LANDING ON ANOTHER BLACK BEACH WE WERE TOLD TO DIG DOWN INTO THE SAND ABOUT A FOOT WHEN WE DID WE FOUND THE SAND BENEATH OUR PALMS WAS UNCOMFORTABLY HOT THAT IS AS CLOSE AS I EVER WANT TO BE TO THE INNARDS OF A VOLCANO WE WANDERED ABOUT FINDING TRACES OF MALEO BIRDS A FLIGHTLESS INHABITANT OF SULAWESI FLOUNDERING INTO THE BIG HOLES THEY DIG AND OCCASIONALLY CATCHING SIGHT OF THEM TO RETURN OUR GUIDE COMMANDEERED A BOAT WHICH HAD ENTERED THE RESERVE WITHOUT PERMISSION BACK IN OUR LITTLE CABINS WE TREATED OUR CHIGGER BITES WITH WHATEVER WE HAD I PAINTED MY LEGS WITH IODINE BUT THE WOMAN FROM FLORIDA INFORMED ME THAT A COATING OF NAIL POLISH WAS THE SOLUTION SINCE EVERYONE WAS LEAVING THAT AFTERNOON EXCEPT ME I ASKED THE GUIDE IF WE COULDN'T HAVE ANOTHER TRY AT SEEING THE LEMURS HIS ASSISTANT AND I WENT OUT AND STOOD UNDER A TREE FOR TWO HOURS WAITING BUT ALL WE SAW WAS A PERFECT WHITE COIN OF MOON RISING THROUGH THE FRONDS OF PALMS IN THE SKY THE NEXT MORNING AGAIN AT 4 AM TULENDE WODI AND I SET OFF FOR THE BEACH AT THE END OF THE PATH THERE WE SHUT OFF OUR FLASHLIGHTS AND WATCHED THE WHITE KNUCKLES OF THE WAVES COME UP ON THE BLACK SAND THROUGH THE DARK FOLLOWED BY THE SOFT ROAR OF THE SEA WE TURNED RIGHT I COULD JUST MAKE OUT THE WHITE BACKS OF HIS SNEAKERS WE MOVED SLOWLY AND VERY QUIETLY STOPPING FROM TIME TO TIME FINALLY WE HALTED AND I COULD HEAR HIGH BATLIKE NOISES AROUND ME TULENDE TURNED ON HIS FLASHLIGHT AND THERE IN ITS BEAM WERE A PAIR OF ENORMOUS CURIOUS EYES AND A PAIR OF FINGERS SPLAYED LIKE A CHILD TRYING TO MAKE AN OCTAVE ON THE PIANO HE MOVED THE LIGHT UP AND THERE WAS ANOTHER AND ANOTHER AND AS QUICKLY AS I SAW THEM THEY VANISHED THE NEXT DAY I RETURNED TO MANADO BY JEEP THIS TIME NEXT TO AN ELDERLY LADY WITH A SEPULCHRAL COUGH AND BY BEMO THIS TIME IN THE FRONT SEAT WITH A MAN AND HIS DAUGHTER IMMEDIATELY I WENT TO THE JUMBO SUPERMARKET AND BOUGHT NAIL POLISH FOR MY CHIGGER BITES WHICH BY NOW CAUSED ME TO LIE IN BED AT NIGHT WISHING THAT I COULD PEEL MY SKIN OFF IN STRIPS WITH A SARDINE CAN OPENER LUCKILY THEY HAD NEUTRAL POLISH OTHERWISE I WOULD HAVE HAD TO CHOOSE BETWEEN CARMINE OR LAVENDER LEOPARD SPOTS MS SWENSON IS A POET IN BROOKLYN NY WHO TRAVELS FREQUENTLY THROUGHOUT ASIA 9312300018 931230 CHAINSAW SCULPTORS ARE CARVING A NICHE IN THE WORLD OF ART THEIR GENRE CREATES A BUZZ BUT CRITICS ARE STUMPED BY EIGHTFOOT BIGFOOTS BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW WAVERLY TEXAS DONALD MCADAMS CIRCLES HIS PREY JABBING HIS SNARLING CHAIN SAW AT THE VICTIM'S FACE SLASHING AT THE CHIN AND GOUGING THE EYES MR MCADAMS'S TARGET A THICK PINE LOG THAT HE IS SCULPTING INTO THE LIKENESS OF AN INDIAN CHIEF AT HIS SHOP HERE ALONG RURAL HIGHWAY 45 AN HOUR'S DRIVE NORTH OF HOUSTON THE 49YEAROLD FORMER CARPENTER IS ALSO CUTTING AWAY AT A STAND OF SOONTOBE BEARS COWBOYS EAGLES TOTEM POLES ARMADILLOS AND COYOTES THE CHAINSAW GENRE IS DEFINITELY KICKING UP SOME SAWDUST LOTS OF PEOPLE ARE BUYING CHAINSAW ART AS GIFTS THESE DAYS CHAINSAW ART COLONIES ARE POPPING UP PRACTITIONERS ARE PERFORMING AT ART FESTIVALS AND STATE AND COUNTY FAIRS SOME EVEN HAVE AGENTS AND SOME PIECES ARE COMMANDING PRICES WITH MORE THAN A COUPLE OF ZEROS TACKED ONTO THE END THE GROUSE MOUNTAIN RESORT IN VANCOUVER CANADA IS INVESTING MORE THAN 200000 IN A THREEYEAR PROJECT BY GLENN GREENSIDES TO CREATE 18 GIANT WOOD CARVINGS DEVOTED TO FORESTRY THEMES THE SPINNING WHEEL A GIFT SHOP IN WATERBURY CENTER VT WHICH HAS BECOME SOMETHING OF A CHAINSAW ART COLONY WITH FIVE FULLTIME CARVERS SELLS A FULLSIZE MOOSE SCULPTURE FOR 4000 AN EIGHTFOOTTALL CHAINSAW SCULPTURE OF BIGFOOT SOLD FOR 2000 THREE YEARS AGO IN STRAWBERRY CALIF THE WORK BY AN OREGON ARTIST WAS STOLEN THIS YEAR BY A BAND OF COLLEGE STUDENTS WHO WERE CHARGED WITH GRAND THEFT THE CARVING WAS RETURNED CHAINSAW ARTISTS ARE RELUCTANT TO DISCUSS THEIR EARNINGS BUT ONE SAYS THAT KEEPING TIGHT CONTROL ON HIS EXPENSES AND LIFESTYLE ENABLED HIM TO BANK 70000 THIS YEAR HE IS PLANNING TO RETIRE IN ANOTHER THREE TO FOUR YEARS OTHERS EARN HANDSOME INCOMES AS PERFORMERS TOO OMAHA TALENT AGENT DEAN SHORT BOOKS A STABLE OF CHAINSAW ARTISTS INTO SUMMER FAIRS THEY ALSO COMPETE IN TOURNAMENTS THAT REQUIRE THEM TO CREATE A CERTAIN SIZE OR TYPE OF CARVING IN A LIMITED PERIOD THE IDEA OF USING A CHAIN SAW TO SCULPT ISN'T NEW LOGGERS STARTED DOING SO IN THE LATE 1950S THE CRAFT GOT A BOOST WHEN LIGHTER AND EASIERTOMANEUVER CHAIN SAWS EMERGED IN THE '60S MOST CHAIN SAWERS USE SCAVENGED WOOD FROM TREE SURGEONS OR SAWMILLS PREFERRING WHITE PINE REDWOOD OR OTHER SOFT WOODS ROBERT QUALLS OF BROKEN BOW OKLA BOUGHT THE TIMBER RIGHTS TO 172 ACRES OF LAND TO PROVIDE HIM WITH CHOICE CEDAR FOR HIS WORK THE URGE TO SHOW OFF THEIR SKILLS HAS LED CHAIN SAWERS TO SOME INTERESTING STUNTS IN ONE TAPED FOR A MINNESOTA TV STATION BARRE PINSKE OF WEST BARNSTABLE MASS USED A CHAIN SAW TO CARVE A MAN'S NAME IN AN APPLE WHILE THE GENT CLENCHED THE FRUIT BETWEEN HIS TEETH FOR SHEER DAREDEVIL AUDACITY THOUGH FEW CHAINSAW ARTISTS CAN TOP RAY MURPHY THE 52YEAROLD LOGGERTURNEDCHAINSAW SCULPTOR FROM ELLSWORTH MAINE CARVES NAMES ON WOODEN BELT BUCKLES WHILE THEIR OWNERS WEAR THEM IF THERE'S ANY MOVEMENT IN THAT BELT BUCKLE YOU'RE GONE HE SAYS HE ALSO HAS CARVED THE ENTIRE ALPHABET ON A NO 2 PENCIL A FEAT RECOGNIZED BY RIPLEY'S BELIEVE IT OR NOT YES BUT IS IT ART EVEN CHAINSAW MAESTROS DON'T AGREE IF THEY'RE SAYING CHAINSAW SCULPTURE IS NOT ART THEN MICHELANGELO'S NOT ART MR MURPHY HUFFS ABOUT OTHER ARTISTS WHO LOOK DOWN THEIR NOSES AT HIS WORK MR PINSKE DESCRIBES HIS STYLE AS POSTINDUSTRIAL EXPRESSION WHICH HE SAYS REPRESENTS THE STATE OF AMERICAN SOCIETY MR PINSKE DISPLAYS ART HE CREATES WITH A HYDRAULICPOWERED CHAIN SAW IN HIS GALLERY ON CAPE COD AND SAYS I'M REALLY WORKING TO DO ART ON ART TERMS BUT DENNIS ROGHAIR OF HINCKLEY MINN A THREETIME WORLD CHAMPION CHAINSAW SCULPTOR CHARACTERIZES HIS WORK AS REALISM OR CLOSE REPLICATION OF HIS SUBJECTS AND BRUCE WEBB A FOLKART DEALER IN WAXAHACHIE TEXAS CONSIDERS CHAINSAW CARVING MORE OF A CRAFT THAT CONSISTS MOSTLY OF THE SAME OLD COPIES RATHER THAN ONEOFAKIND PIECES WE'VE PASSED OVER MOST OF THE CHAINSAW CARVING WE'VE SEEN BECAUSE THEY TEND TO BE EAGLES AND BEARS MR WEBB SAYS THERE ARE SOME MAVERICKS CHALLENGING THAT STEREOTYPE HOWEVER CONSIDER MR ROGHAIR'S 31FOOT 23TON REDWOOD CARVING OF A VOYAGER HOLDING A CANOE PADDLE COMMISSIONED BY PINE CITY MINN OR HIS GIANT MOSQUITO ORDERED BY A WOMAN WHOSE FATHER MOVED TO ARIZONA FROM MINNESOTA TO ESCAPE THE INSECTS AND THEN THERE IS THE FOURFOOT LUMBAR VERTEBRAE THAT TERRY BOQUIST OF TANEYTOWN MD CARVED FOR A CHIROPRACTOR WHO SAID HE MADE HIS MONEY FROM THAT TROUBLESOME PART OF THE SPINE HAL MACINTOSH OF LANESVILLE NY WHO JUST PRIVATELY PUBLISHED A BOOK ON MAKING AND MARKETING CHAINSAW ART HAS VENTURED INTO NUDES IN TULSA OKLA A 12FOOT AMERICAN COMBAT SOLDIER ATOP A PILE OF SANDBAGS SCULPTED BY CHAINSAW ARTIST CLAYTON COSS STANDS OUTSIDE A VETERANS' CENTER AS A VIETNAM MEMORIAL THEN THERE IS MR MCADAMS THE HENRY FORD OF THE CHAINSAW SET WHO DEALS IN VOLUME AND HARBORS FEW ARTISTIC PRETENSIONS I DO AS LITTLE AS I CAN FOR THE SAME MONEY SAYS MR MCADAMS AN EIGHTHGRADE DROPOUT WHO HELD A SUCCESSION OF ODD JOBS BEFORE FINDING HIS CALLING 10 YEARS AGO POINTING TO A CRUDE CARVING OF AN ARMADILLO THAT COULD PASS FOR A HIGHSCHOOL SHOP PROJECT HE SAYS WITHOUT APOLOGY I COULD HAVE SAT HERE FOR A HALFHOUR PUTTING DETAILS ON IT IT'S STILL A 35 PIECE INDEED MR MCADAMS PRIDES HIMSELF ON COMPLETING 350 SCULPTURES IN AS LITTLE AS TWO HOURS AND 35 JOBS IN 15 MINUTES THIS ART ISN'T FOR THE WEEKEND HACKER A CHAIN SAW IS AN EXTREMELY UNFORGIVING TOOL OBSERVES TIM BARKER AN ARTIST IN MEDIAPOLIS IOWA THE US CONSUMER PRODUCT SAFETY COMMISSION SAYS THERE WERE 38692 CHAINSAWRELATED INJURIES IN 1992 THAT REQUIRED HOSPITAL EMERGENCYROOM VISITS NO ONE KNOWS HOW MANY OF THOSE CAME WHILE INVOKING THE CHAINSAW MUSE BUT CHAINSAW ARTISTS SAY INJURIES AREN'T UNCOMMON AN OUTOFCONTROL SAW CUT OPEN PART OF PLAINFIELD VT ARTIST SCOTT CROCKER'S FACE AND KNOCKED OUT FOUR TEETH EARLIER THIS YEAR WHILE HE WAS PREPARING A BOARD FOR A CARVING AND MR PINSKE ONCE HAD A LENGTHY HOSPITAL STAY AFTER HIS CHAIN SAW RIPPED INTO HIS SHOULDER BONE THEY TREATED IT LIKE A FARM INJURY HE SAYS IF VAN GOGH HAD USED A CHAIN SAW SAYS SCULPTOR BRIAN RUTH OF WARMINSTER PA HE PROBABLY WOULD HAVE CUT MORE THAN AN EAR 9312300017 931215 RULE OF LAW WHO SAYS CRIME DOESN'T PAY BY ERIC BREINDEL THE CRIME NEWS FROM NEW YORK LAST WEEK TURNED ON THE RAMPAGE OF A MAD GUNMAN ON THE LONG ISLAND RAILROAD THERE WAS ANOTHER NEW YORK CRIME STORY HOWEVER THAT DESERVED WIDER ATTENTION SOMETIMES THE LAW DEPARTS FROM REALITY IN A MANNER SO PROFOUND THAT MERELY RECOUNTING THE FACTS OF THE CASE IN QUESTION TELLS THE ENTIRE STORY IN THE EARLY SUMMER OF 1984 JEROME SANDUSKY A 71YEAROLD RETIREE WAS WAITING FOR HIS TRAIN IN A MANHATTAN SUBWAY STATION IT WAS JUST AFTER SUNDOWN MR SANDUSKY WAS SET UPON BY SEVERAL YOUTHS TWO OF WHOM KNOCKED HIM TO THE GROUND AND RIFLED HIS POCKETS ALL THE WHILE KEEPING A CHOKE HOLD AROUND HIS NECK ONE OF THE MUGGERS 23YEAROLD BERNARD MCCUMMINGS CONTINUED TO BEAT MR SANDUSKY THROUGHOUT THE EPISODE RESULTING IN THE VICTIM'S EVENTUAL HOSPITALIZATION SUDDENLY WHILE THE ASSAULT WAS IN PROGRESS TWO TRANSIT POLICE OFFICERS ARRIVED AT THE SCENE CHRISTINE MEAD AND MANUEL RODRIQUEZ HEARD MR SANDUSKY'S SCREAMS AND RUSHED TO HIS ASSISTANCE MCCUMMINGS AND JACOB WISE WERE STILL BEATING MR SANDUSKY WITH ABANDON HIS COAT WAS TORN HIS GLASSES HAD BEEN BROKEN HIS POCKETS WERE OPEN WHEN OFFICER RODRIQUEZ A 14YEAR VETERAN OF THE FORCE SHOUTED POLICE DON'T MOVE WISE AND MCCUMMINGS HOWEVER RECEIVED ANOTHER WARNING VIRTUALLY SIMULTANEOUSLY FROM THEIR LOOKOUT NATHAN WOODS WHO YELLED YO WHAT HAPPENED NEXT REMAINS IN DISPUTE OFFICER RODRIQUEZ WHO WAS CLEARED OF WRONGDOING IN AN INTERNAL PROBE CLAIMS MCCUMMINGS AND WISE LUNGED AT HIM BEFORE TURNING TO FLEE THE TRANSIT COP FIRED FIVE SHOTS ONE OF WHICH SEVERED MCCUMMINGS'S SPINAL CORD AND LEFT HIM CONFINED TO A WHEELCHAIR THE MUGGER DENIES THAT HE DID ANYTHING OTHER THAN ATTEMPT TO RUN AWAY EVENTUALLY MCCUMMINGS SUED THE NEW YORK TRANSIT AUTHORITY FOR PERMITTING THE USE OF EXCESS YEARS AGO A MANHATTAN STATE SUPREME COURT JURY ACCEPTED HIS TESTIMONY AND AWARDED HIM 43 MILLION IN THE INTERIM MCCUMMINGS A CAREER CRIMINAL COPPED AN ATTEMPTED ROBBERY PLEA AND SERVED 32 MONTHS IN PRISON THE MULTIMILLION DOLLAR DAMAGE AWARD MCCUMMINGS FILED SUIT AFTER HIS RELEASE WAS UPHELD BY THE NEW YORK STATE SUPREME COURT'S APPELLATE DIVISION AND EARLIER THIS YEAR BY THE STATE COURT OF APPEALS LAST MONTH JUST A FEW DAYS BEFORE A GUNMAN MURDERED SIX COMMUTERS ON THE LONG ISLAND RAILROAD THE US SUPREME COURT DECLINED TO HEAR THE CASE MCCUMMINGS IN SHORT HAS HIS MONEY WHILE HIS ATTORNEY SAYS THE EXMUGGER WOULD MUCH PREFER THE USE OF HIS LEGS THIS NOTION AFFORDS THE REST OF US SMALL COMFORT SO FAR AS ONE CAN TELL MCCUMMINGS TENDED TO USE HIS LEGS MOSTLY FOR THE PURPOSE OF ATTACKING FOLKS LIKE JEROME SANDUSKY SPEAKING OF MR SANDUSKY HE GETS NO COMPENSATION AT ALL NOT EVEN FOR HIS TORN COAT AND BROKEN GLASSES WHAT'S MORE HE CAN'T SUE MCCUMMINGS THE STATUTE OF LIMITATIONS HAS EXPIRED MR SANDUSKY IT SHOULD BE NOTED HAS TROUBLE EVEN VIEWING THE CASE AS AN ATTEMPTED ROBBERY BY HIS LIGHTS THIS WAS MORE THAN ASSAULT AND ROBBERY IT WAS ATTEMPTED MURDER AS HE SEES IT I WAS SAVED FROM BEING CHOKED TO DEATH BY OFFICER RODRIQUEZ SANDUSKY NOTES SPECIFICALLY THAT MCCUMMINGS THREATENED TO CHOKE ME TO DEATH IF I DIDN'T SHUT UP HAPPILY FOR HIS OWN SAKE MR SANDUSKY DIDN'T DESIST FROM SCREAMING THE LAST WRITTEN RULING IN THE CASE ISSUED BY THE NEW YORK STATE COURT OF APPEALS EARLIER THIS YEAR AFFECTS A TONE OF PIOUS FINALITY ASSERTING SIMPLY THAT OFFICER RODRIQUEZ IN EMPLOYING DEADLY PHYSICAL FORCE IN AN EFFORT TO ARREST MCCUMMINGS DID NOT EXERCISE THAT DEGREE OF CARE WHICH WOULD REASONABLY BE REQUIRED OF A POLICE OFFICER ACTING UNDER SIMILAR CIRCUMSTANCES UNFORTUNATELY THE RULING FAILS TO NOTE THAT THE ENTIRE EPISODE TOOK PLACE IN A MATTER OF SECONDS IT ALSO OMITS MR SANDUSKY'S CLAIM THAT MCCUMMINGS THREATENED TO KILL HIM AND IT IGNORES THE FACT THAT THE MUGGING VICTIM THIS WASN'T THE FIRST TIME MR SANDUSKY HAD BEEN SET UPON AND BEATEN HAS SINCE FLED NEW YORK CITY FINALLY THE COURT OF APPEALS DECISION FAILS TO DEAL WITH THE ORIGINAL JURY'S SENSE THAT IT HAD VIRTUALLY NO LATITUDE JUSTICE LEONARD COHEN HAD ISSUED A DUAL CHARGE HE ASKED THE JURY TO DETERMINE WHETHER OR NOT OFFICER RODRIQUEZ'S CONDUCT MET THE STANDARDS DEFINED BY THE SUPREME COURT FOR POLICE OFFICERS FIRING THEIR WEAPONS TO SUBDUE FLEEING SUSPECTS THE JUDGE WENT ON TO TELL THE JURORS THAT IF OFFICER RODRIQUEZ'S CONDUCT FAILED TO MEET THE HIGH COURT'S TEST THEIR TASK WAS TO DECIDE HOW MUCH MONEY MCCUMMINGS WOULD NEED TO LIVE OUT THE REST OF HIS LIFE IN A WHEELCHAIR JUSTICE COHEN NEGLECTED TO EXPLAIN THAT THE JURY'S JOB ALSO INCLUDES AN OBLIGATION TO DISPENSE JUSTICE HE DIDN'T REMIND THE JURORS THAT MOST PEOPLE WHO ARE CONFINED TO WHEELCHAIRS DON'T RECEIVE MULTIMILLION DOLLAR DAMAGE AWARDS TO HELP THEM MEET THEIR NEED EVEN THOUGH QUADRAPLEGICS AREN'T GENERALLY RESPONSIBLE FOR THEIR OWN UNHAPPY CIRCUMSTANCES IT SEEMS WELL TO REMEMBER THAT MCCUMMINGS DIDN'T SAY STEP ON A LANDMINE IN VIETNAM LET'S HOPE MOREOVER THE JURY REALIZED THAT THE TAXPAYERS ARE FOOTING THE BILL HERE NOT SOME DEEP POCKETS INSURANCE COMPANY BEYOND MCCUMMINGS HIMSELF THE ONLY PARTIES TO DERIVE ACTUAL FINANCIAL BENEFIT FROM THIS CASE ARE HIS LAWYER WHO TOOK THE MATTER ON A CONTINGENCYFEE BASIS AND A WOMAN WHO MAINTAINS MCCUMMINGS FATHERED HER OUTOFWEDLOCK CHILD SOMETIME IN THE 1970S MCCUMMINGS IT APPEARS NEVER PAID A PENNY IN CHILD SUPPORT MR SANDUSKY TO BE SURE DID TRY THE CRIME VICTIMS COMPENSATION ROUTE BUT WHEN HE FILED HIS GRIEVANCE MCCUMMINGS WAS STILL OFFICIALLY INDIGENT THIS IN SHORT IS A FUNNY CASE WHEN EXAMINED FROM A DISTANCE ON CLOSE INSPECTION HOWEVER IT LOSES MUCH OF ITS CHARM MR BREINDEL IS EDITORIAL PAGE EDITOR OF THE NEW YORK POST AND A SYNDICATED COLUMNIST SEE RELATED LETTER LETTERS TO THE EDITOR TAXPAYER IS AT BOTTOM OF EVERY DEEP POCKET' WSJ DEC 30 1993 9312150122 YY93 MM12 9312300015 931230 WHO'S NEWS CARLISLE COS CARLISLE COS SYRACUSE NY STEPHEN P MUNN 51 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS TRANSPORTATION AND CONSTRUCTION MATERIALS HOLDING COMPANY WAS ELECTED TO THE ADDITIONAL POSITION OF CHAIRMAN HE SUCCEEDS E DOUGLAS KENNA 69 WHO IS RETIRING 9312300013 931230 BUSINESS BRIEF GTE CORP CALIFORNIA UNIT TO REDUCE '94 REVENUE 1005 MILLION GTE CORP SAID ITS GTE CALIFORNIA UNIT WILL REDUCE ITS 1994 REVENUE BY 1005 MILLION RESULTING IN A 130 REDUCTION IN MONTHLY AVERAGE RESIDENTIAL TELEPHONE BILLS THE REDUCTIONS FOR CUSTOMERS WILL CONSIST OF A REFUND FOR LOCAL SERVICES AS WELL AS A REFUND FOR INTRASTATE TOLL CALLS LONGDISTANCE COMPANIES WILL ALSO RECEIVE A REFUND ON CHARGES THEY PAY GTE CALIFORNIA FOR ACCESS TO ITS CUSTOMERS GTE WITH HEADQUARTERS IN STAMFORD CONN PROVIDES LOCAL TELEPHONE SERVICE THE RATE REDUCTION STEMS FROM AN ANNUAL PRICECAP FILING REQUIRED BY LOCAL REGULATORS PARTLY AS AN ATTEMPT TO BRING GTE CALIFORNIA'S REVENUE IN LINE WITH ITS COSTS THE COMPANY SAID IT REFUNDS HALF OF ITS ANNUAL EARNINGS ABOVE 13 TO CUSTOMERS AS PART OF A REVENUESHARING PROCESS GTE CALIFORNIA SAID IT EXPECTS TO SHARE 1993 EARNINGS WITH CUSTOMERS SOME TIME IN 1994 9312300012 931230 IONICS GETS NIGERIAN CONTRACT WATERTOWN MASS IONICS INC SAID ITS ITALIAN UNIT IONICS ITALBA SPA WAS AWARDED AN 8 MILLION CONTRACT TO SUPPLY A WASTEWATER TREATMENT PLANT TO SERVE A CHEMICAL COMPLEX IN NIGERIA IONICS SAID THE WORK IS EXPECTED TO BE COMPLETED WITHIN ABOUT A YEAR THE CONTRACT WAS AWARDED BY GENERAL CONTRACTOR CHIYODA CHEMICAL ENGINEERING & CONSTRUCTION CO OF JAPAN 9312300010 931230 ROSS STORES' DECEMBER SALES NEWARK CALIF ROSS STORES INC SAID SALES GREW 4 TO 164 MILLION FOR THE FOURWEEK PERIOD ENDED CHRISTMAS DAY FROM 157 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR HOWEVER DECREASED 4 FOR THE PERIOD FOR THE 11 MONTHS THROUGH DEC 25 THE DISCOUNT RETAIL CHAIN SAID SALES ROSE 7 TO 105 BILLION FROM 978 MILLION A YEAR EARLIER WHILE COMPARABLESTORE SALES IN THE PERIOD DECLINED 1 9312300009 931230 TRAVEL SKI AREAS ARE GETTING A BIG LIFT BY PROVIDING EASIER TRAVEL BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL BETHEL MAINE DAVID ROBERTS USED TO FIND THE SWEATDRENCHING PART OF SKIING BEGAN LONG BEFORE THE SLOPES THE TRAIN TO THE SUNDAY RIVER SKI RESORT IS HELPING TO CHANGE THAT I SEE THIS AS A MAJOR WAY TO TAKE THE STRESS OUT OF SKI VACATIONS THE BOSTONIAN SAYS AS HE SITS BACK DURING THE INAUGURAL TRIP OF THE SUNDAY RIVER SILVER BULLET THE RESORT'S NEW PORTLANDTOBETHEL TRAIN SHUTTLE ON HIS WAY TO HIS SECOND HOME AS TRAFFIC ON HIGHWAYS AROUND RESORTS GETS MORE CONGESTED SOME US SKI MECCAS ARE GETTING INVOLVED IN THE TRANSPORTATION BUSINESS AS REVENUESHORT LOCAL AND STATE GOVERNMENTS WITHDRAW ABOUT 88 OF SKIERS TRAVEL AT LEAST THE LAST LEG OF THEIR TRIP TO SKI RESORTS BY CAR AND THEY AREN'T PARTICULARLY HAPPY ABOUT IT IN A SURVEY OF 8500 SKIERS 265 OF THOSE INTERVIEWED SAID THE HASSLE OF TRAVELING RANKING ABOVE POOR SNOW CONDITIONS WAS A MAJOR REASON THEY DON'T SKI MORE OFTEN ACCORDING TO THE NATIONAL SKIER OPINION SURVEY BOULDER COLO EVERYBODY KNOWS TRAFFIC IS SERVING AS AN IMPEDIMENT TO GROWTH IN THE SKIING INDUSTRY SAYS LILLIAN ROSS A SPOKESPERSON FOR SKI THE SUMMIT A MARKETING COALITION OF SKI RESORTS IN SUMMIT COUNTY COLO SO SEVERAL RESORTS HAVE TRIED TO DO SOMETHING ABOUT IT ESPECIALLY IN THE WEST STEAMBOAT SPRINGS COLO FOR EXAMPLE CONSISTENTLY GARNERED HIGH MARKS ON ANNUAL SKIMAGAZINE READER POLLS FOR THINGS LIKE SNOW CONDITIONS AND SERVICE SAYS ROD HANNA VICE PRESIDENT BUT READERS DIDN'T LIKE THE THREEHOURORMORE DRIVE FROM DENVER'S AIRPORT SO IN 1986 THE RESORT GUARANTEED A PROFIT FOR AIRLINES THAT WOULD START REGULAR DIRECT FLIGHTS FROM MAJOR METROPOLITAN MARKETS SINCE THEN FOUR AIRLINES HAVE JOINED THE PROGRAM ACCOUNTING FOR ONEQUARTER OF THE SKI RESORT'S LIFTTICKET SALES MR HANNA SAYS STEAMBOAT'S SUCCESS PROMPTED SKI RESORTS IN CALIFORNIA'S LAKE TAHOE AREA TO LOBBY SUCCESSFULLY FOR INCREASED DIRECT FLIGHTS FROM LOS ANGELES AND THE BAY AREA MEANWHILE CALIFORNIA SKI INDUSTRY THE STATE'S INDUSTRY GROUP IS WORKING WITH THE STATE'S TRANSPORTATION AGENCY ON OTHER SOLUTIONS LIKE LIGHTRAIL SYSTEMS TO MOVE PEOPLE TO THE LAKE TAHOE AREA RESORTS MORE QUICKLY IN ASPEN COLO THE SKI AREA IS WORKING WITH THE CITY AND COUNTY ON A LONGRANGE PLAN FOR EITHER A RAIL A GONDOLA OR A SEPARATE BUS ROAD TO RESOLVE TIEUPS ALONG NARROW AND DANGEROUS STATE HIGHWAY 82 FROM GLENWOOD SPRINGS THE STATE CAN'T WIDEN THE ROAD BECAUSE THE AREA ALREADY VIOLATES FEDERAL AIRQUALITY STANDARDS ADDITIONAL CARS WOULD MEAN MORE POLLUTION AND THE SKICOMPANY RESERVATIONS DESK IS TRYING TO PERSUADE THE 60 OF AREA SKIERS WHO FLY TO ASPEN TO USE THE JOINT COUNTYSKI AREA BUS SYSTEM INSTEAD OF RENTING CARS NATURALLY SKI RESORTS AREN'T EAGER TO GET INTO THE EXPENSIVE BUSINESS OF TRANSPORTATION BUT NEITHER ARE TAXPAYERS CALIFORNIA'S BUDGET PROBLEMS PROHIBIT MUCH STATE ACTION IN COLORADO THE ANTITAX AMENDMENT 1 THAT PASSED IN 1992 RESTRICTS TAXPAYERFUNDED SOLUTIONS TO SKITRAFFIC HASSLES IN MAINE VOTERS' REJECTION OF A PROPOSAL TO WIDEN THE MAINE TURNPIKE OPENED THE EYES OF LESLIE B OTTEN OWNER OF THE TRAIN AT SUNDAY RIVER IT WAS A REFERENDUM ON WHETHER WE WILL SOLVE OUR FUTURE TRANSPORATION PROBLEMS BY BUILDING MORE ROADS HE SAYS THAT IDEA WAS OVERWHELMINGLY REJECTED SKI RESORTS HAVEN'T ALL SUCCEEDED IN THEIR TRANSIT VENTURES THIS YEAR STRATTON MOUNTAIN RESORT IN VERMONT DISCONTINUED ITS BUS SERVICE FROM SPRINGFIELD MASS PROVIDED BY PETER PAN BUS LINES BECAUSE THE BUSES WEREN'T FULL ENOUGH TO BREAK EVEN FINANCIALLY SAYS DAVE RATHBUN DIRECTOR OF SALES FOR STRATTON AND ASPEN'S PLANS FOR TRAIN OR BUS SERVICE HAVE BEEN MET WITH SKEPTICISM FROM ITS HIGHCLASS VISITORS WE KNOW THE TYPICAL RITZ GUEST ISN'T A BUS ENTHUSIAST SAYS BRENT GARDINERSMITH ASPEN SKIING CO'S TRANSPORTATION DIRECTOR AS FOR SUNDAY RIVER SOME COMPETITORS HAVE DOUBTS ABOUT THE NEW VENTURE MR RATHBUN THINKS IT'LL BE TOUGH TO GET NEW ENGLANDERS OUT OF THEIR CARS AND TOM MEYERS OF THE VERMONT SKI AREAS ASSOCIATION DOESN'T BELIEVE RESORT TRAFFIC HAS REACHED A POINT WHERE SKIERS ARE CLAMORING FOR MASS TRANSIT SKI TRAINS LIKE SUNDAY RIVER'S AREN'T A NEW IDEA IN 1931 THE FIRST TRAIN WAS ORGANIZED FOR SKIERS BY 1936 THE NEW YORK NEW HAVEN & HARTFORD RAILROAD TOOK 70000 SKIERS OUT OF GRAND CENTRAL STATION IN THE YEAR'S FIRST QUARTER THE LAST SKI TRAIN IN NEW ENGLAND RAN IN 1951 BUT OUT WEST A LONE HOLDOUT REMAINS THE 53YEAROLD RIO GRANDE SKI TRAIN THAT TAKES PASSENGERS FROM DENVER TO WINTER PARK SKI RESORT EVERY WEEKEND DURING SKI SEASON THE TRAIN WHICH HOLDS ABOUT 1000 PASSENGERS TAKES ABOUT TWO HOURS OR ABOUT THE SAME TIME AS THE DRIVE OVER HIGHWAY 40 AND THE WINDING BERTHOUD PASS WHILE WINTER PARK HAPPILY BENEFITS FROM TRAIN SERVICE OPERATED BY ANSCHUTZ CORP WHICH OWNS THE RAILROAD SUNDAY RIVER ORGANIZED ITS OWN TRAIN SERVICE BUT MR OTTEN THE OWNER SEES IT AS A NECESSITY HIS RESORT SITS ON A NARROW WINDING TWOLANE HIGHWAY ABOUT 70 MILES NORTHWEST OF PORTLAND AT SOME POINT WE'LL HAVE A ROADCAPACITY PROBLEM PROBABLY IN FOUR TO FIVE YEARS HE SAYS IF WE'RE GOING TO GROW WE HAVE TO GET OUR BUTTS OUT IN THE BREEZE MR OTTEN DECIDED TO BUY A TRAIN THREE MONTHS AGO AND THE RESORT'S STAFF HAD TO SCRAMBLE TO FIND THE EQUIPMENT IN TIME TO PROVIDE CHRISTMAS SERVICE THE TRAIN STARTED ITS REGULAR RUNS AT THE END OF DECEMBER CARRYING AS MANY AS 436 PASSENGERS A DAY THROUGH THE HOLIDAY SEASON FOR 15 ROUNDTRIP MR OTTEN'S PLANS ALSO INCLUDE SUMMER TRAIN EXCURSIONS TO THE RESORT A NEW HOTEL NEAR THE TRACKS IN BETHEL AND EVENTUALLY EVEN A GONDOLA OR MONORAIL TO REPLACE THE FEEDER BUSES BUT THE SUNDAY RIVER OWNER THINKS HIS TRAIN CAN TURN A PROFIT IN ITS THIRD YEAR AND PROVIDE MORE FUN TO SKIERS IN THE MEANTIME WE'RE IN THE ENTERTAINMENT BUSINESS HE SAYS YOUR VACATION STARTS WHEN YOU BOARD THE TRAIN 9312300007 931230 TECHNOLOGY MGI PHARMA RECEIVES APPROVABLE LETTER' FOR SALAGEN PRODUCT MINNEAPOLIS MGI PHARMA INC SAID THE FOOD AND DRUG ADMINISTRATION ISSUED AN APPROVABLE LETTER THE PRELUDE TO FULLSCALE MARKETING CLEARANCE FOR THE COMPANY'S SALAGEN PRODUCT SALAGEN IS A TABLET DESIGNED TO TREAT A CHRONIC DRYMOUTH CONDITION THAT AFFLICTS CERTAIN RADIATIONTHERAPY PATIENTS SUCH PATIENTS ARE FOUND PRIMARILY AMONG THE 40000 OR SO IN THE US EACH YEAR WHO ARE TREATED FOR HEAD AND NECK CANCER THEY SOMETIMES SUFFER DAMAGE TO SALIVARY GLANDS WHICH CAN CAUSE DIFFICULTY IN TALKING EATING OR SLEEPING THE COMPANY SAID THE FDA'S FINAL APPROVAL NOW HINGES ON A SAFETY UPDATE FROM THE COMPANY AS WELL AS THE COMPLETION OF LABELING FOR THE PRODUCT A SPOKESWOMAN SAID IT IS IMPOSSIBLE TO PREDICT WHEN FINAL APPROVAL MIGHT BE GIVEN MGI A NICHE PLAYER IN THE PHARMACEUTICALS INDUSTRY PRODUCES SPECIALTY CANCER TREATMENTS SALAGEN KNOWN GENERICALLY AS PILOCARPINE HAS BEEN USED FOR DECADES IN EYEDROP FORM AS A GLAUCOMA TREATMENT AND IN THAT APPLICATION NO LONGER HAS PATENT PROTECTION MGI DEVELOPED THE TABLET FORM AND BROUGHT IT THROUGH CLINICAL TRIALS THE NEW PRODUCT HAS BEEN GRANTED ORPHAN DRUG STATUS WHICH GIVES A NEW DRUG SEVEN YEARS OF MARKETING EXCLUSIVITY FOLLOWING FDA APPROVAL MGI DIDN'T PREDICT ITS EXPECTED REVENUE FROM THE PRODUCT MGI REPORTED A YEARTODATE NET LOSS OF 73 MILLION OR 64 CENTS A SHARE THE COMPANY SAID HOWEVER THAT SALAGEN WHICH WILL BE ITS FIRST MAJOR PRODUCT IS VERY IMPORTANT TO THE OVERALL DEVELOPMENT OF MGI AS A PHARMACEUTICALS COMPANY AND THAT SALAGEN REVENUE IS EXPECTED TO EVENTUALLY TURN OUR COMPANY PROFITABLE 9312300006 931230 MONEYMARKET YIELDS EDGED UP FOR WEEK BUT ASSETS DECLINED NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS WERE A LITTLE HIGHER FOR THE WEEK ENDED TUESDAY WHILE ASSETS FELL IBC/DONOGHUE INC'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS CREPT UP TO 276 FROM 275 ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS INCHED UP TO 272 FROM 271 WHILE THE 30DAY SIMPLE YIELD ROSE TO 270 FROM 269 THE 30DAY COMPOUND YIELD ALSO EDGED UP TO 274 FROM 273 ASSETS OF 637 TAXABLE FUNDS TWO MORE THAN THE PREVIOUS WEEK FELL BY 844 BILLION TO 48005 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS WERE RESPONSIBLE FOR 667 BILLION OF THE OUTFLOW WHILE INDIVIDUAL INVESTORS TOOK OUT 177 BILLION WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT SAID THAT ALTHOUGH RISING YIELDS AND FALLING ASSETS ARE NORMAL AT THIS TIME OF YEAR BECAUSE OF SEASONAL FACTORS THE CHANGES THIS YEAR WERE SMALL COMPARED WITH PREVIOUS YEARS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS SHORTENED BY THREE DAYS TO 57 DAYS MR FRANK ATTRIBUTED THIS TO SEASONAL FACTORS ALSO THE AVERAGE TAXEXEMPT SEVENDAY COMPOUND YIELD ROSE TO 219 FROM 187 IN THE LATEST WEEK COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 342 FOR SOMEONE PAYING 36 IN TAXES AND TO 363 FOR THOSE WHO PAY 396 ASSETS OF 338 TAXEXEMPT FUNDS DECREASED BY 9633 MILLION TO 10795 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY WAS SHORTENED BY ONE DAY TO 62 DAYS 9312300005 931230 MANAGEMENT CONSULTANT HAY GROUP GRAPPLES WITH OWN MANAGEMENT WOES BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL A COSTLY MANAGEMENT BUYOUT HAS TURNED INTO A MANAGEMENT MESS FOR HAY GROUP ONE OF THE NATION'S OLDEST MANAGEMENTCONSULTING FIRMS PHILADELPHIABASED HAY LONG ENJOYED A REPUTATION FOR EXPERTISE IN PAY AND OTHER HUMANRESOURCES ISSUES BUT GLOBAL REVENUE GROWTH UNEXPECTEDLY SLOWED AFTER THE 1990 BUYOUT AND THE COMPANY BURDENED WITH HEAVY DEBT BEGAN HAVING TROUBLE PAYING BILLS ON TIME AMID THOSE PROBLEMS CAME THE FORCED RESIGNATIONS OF TWO SENIOR EXECUTIVES DESPITE THIS HAY VIEWS THE BUYOUT AS A SUCCESS WE AREN'T PARTICULARLY HAPPY THAT WE CREATED PROBLEMS BETWEEN US AND VENDORS BY DELAYING CERTAIN BILL PAYMENTS CONCEDES COMPANY SPOKESMAN DORAN TWER BUT HAY NOW IS A VIBRANT INNOVATIVE ORGANIZATION IN THE MIDST OF A FIVEMONTH REVENUE SURGE WORLDWIDE AND THE AGGRESSIVE INTRODUCTION OF A NEW PAYCONSULTING TOOL HE NOTES IN A STATEMENT THE COMBINATION OF NEW BILLING AND PAYABLES SYSTEMS AND STRONG CURRENT PERFORMANCE IS PUTTING THE CASHFLOW SITUATION BEHIND US MR TWER'S STATEMENT ADDS HE DECLINES TO DISCUSS THE RESIGNATIONS HAY'S PROBLEMS HAVE HURT ITS COMPETITIVE POSITION SOME INDUSTRY WATCHERS SAY IN 1992 PRIVATELY HELD HAY RANKED 23RD AMONG THE WORLD'S 40 BIGGEST MANAGEMENT CONSULTING FIRMS DOWN FROM 18TH IN 1989 ACCORDING TO CONSULTANTS NEWS IN FITZWILLIAM NH THE INDUSTRY NEWSLETTER ESTIMATES THAT HAY'S GLOBAL REVENUE FELL TO 195 MILLION IN 1992 FROM 200 MILLION IN 1991 INDUSTRYWIDE REVENUE SURGED 12 HAY'S FISCAL YEAR ENDS SEPT 30 INDUSTRY FIGURES ARE BASED ON A CALENDAR YEAR HAY IS ONE OF THE NUMEROUS US BUSINESSES WHOSE BUYOUTS HAVE SUFFERED GROWING PAINS IN RECENT YEARS ABOUT A THIRD OF 83 LARGE MANAGEMENT BUYOUTS COMPLETED BETWEEN 1985 AND 1989 HAVE DEFAULTED ON THEIR DEBT SOMETIMES BECAUSE THE COMPANY DIDN'T HAVE THE CASH FLOW TO MEET ITS DEBT PAYMENTS SAYS STEVEN KAPLAN AN ASSOCIATE FINANCE PROFESSOR AT UNIVERSITY OF CHICAGO'S BUSINESS SCHOOL WHO COWROTE A STUDY OF THE BUYOUTS BEGUN IN 1943 BY PHILADELPHIA BANK PERSONNEL EXECUTIVE EDWARD N HAY HAY MADE A BIG MARK ON CORPORATE AMERICA THROUGH ITS HAY POINTS SYSTEM WHICH SETS PAY SCALES BY EVALUATING A BROAD RANGE OF JOBS THE SYSTEM STILL IS WIDELY USED IN 1984 THE BIG BRITISH ADVERTISING FIRM SAATCHI & SAATCHI CO ACQUIRED HAY FOR 125 MILLION AS PART OF AN AMBITIOUS BID TO DOMINATE THE WORLD OF MANAGEMENT CONSULTING BUT SAATCHI'S EFFORT FAILED AND IT BEGAN TO WITHDRAW FROM MANAGEMENT CONSULTING IN JUNE 1990 128 HAY SENIOR MANAGERS AND A BRITISH PENSION FUND KICKED IN 30 MILLION AND BORROWED 50 MILLION FROM TWO UK BANKS PLUS 10 MILLION FROM SAATCHI SO THEY COULD BUY BACK THE BUSINESS AT FIRST HAY STARTED TO REPAY THE BANKS' SIXYEAR LOAN AT A FASTER PACE THAN REQUIRED THAT DIDN'T LAST LONG OVER THE PAST YEAR HAY BEGAN HAVING WIDESPREAD CASHFLOW PROBLEMS QUESTAR DATA SYSTEMS INC WHICH PROCESSES SURVEY DATA FOR HAY GETS ITS BILLS PAID IF I TALK TO THEIR ACCOUNTING DEPARTMENT SAYS SHEILA COFFEY CONTROLLER OF THE EAGAN MINN CONCERN SUE SHEA A HAY CONSULTANT IN SEATTLE SAYS PHONE SERVICE FOR HER ONEPERSON HOME OFFICE WAS CUT OFF IN LATE DECEMBER 1992 HAY HADN'T PAID THE BILL NEARLY THREE WEEKS LATER SERVICE WAS RESTORED IN LATE SEPTEMBER FEDERAL EXPRESS CO CANCELED HAY'S NATIONAL CHARGE ACCOUNT IN A DISPUTE OVER ABOUT 40000 OF OVERDUE BILLS ACCORDING TO SEVERAL FORMER HAY EMPLOYEES A FEDERAL EXPRESS SPOKESMAN DECLINES TO TALK ABOUT THE HAY ACCOUNT BUT SAYS WE ONLY SUSPEND CREDIT PRIVILEGES WHEN ALL OTHER EFFORTS TO SETTLE OUTSTANDING BALANCES HAVE BEEN EXHAUSTED MR TWER DECLINES TO DISCUSS SPECIFIC VENDOR RELATIONSHIPS BUT CONCEDES SOME LATE PAYMENTS LED TO A BIT OF TENSION IN HIS STATEMENT HE SAYS HAY ENDURED SOMEWHAT TIGHTER CASH FLOW OVER THE LAST YEAR BECAUSE OF THE RECESSION A BUILDUP IN RECEIVABLES AND ESSENTIAL SPENDING ON HIRING TRAINING NEWPRODUCT DEVELOPMENT AND OTHER AREAS HIS STATEMENT SAYS HAY ALWAYS HAD MORE THAN ENOUGH CASH AND RECEIVABLES TO COVER ALL OBLIGATIONS AND DOESN'T LACK VENDORS WHO WANT ITS BUSINESS TO CORRECT CASHFLOW PROBLEMS MR TWER SAYS HAY IS STREAMLINING ITS BILLPAYMENT PROCESS THE FIRM ALSO RECENTLY INVESTED IN A MORE DECENTRALIZED COMPUTER SYSTEM THAT BILLS CORPORATE CLIENTS FASTER AMID HAY'S CASHFLOW DIFFICULTIES CAME THE SURPRISE RESIGNATIONS IN MIDOCTOBER OF TWO SENIOR EXECUTIVES DAVID F MCDANIEL AND IRA KAY MR MCDANIEL WHO RAN HAY'S US BUSINESS DECLINES TO COMMENT MR KAY A MCDANIEL ALLY WHO DIRECTED THE FIRM'S US EXECUTIVECOMPENSATION PRACTICE SAYS HE AND CHRIS MATTHEWS HAY CHAIRMAN AND CHIEF EXECUTIVE DIFFERED OVER POLICY ISSUES EXHAY EMPLOYEES SAY THE TWO EXECUTIVES' UNEXPECTED DEPARTURE HAS HURT MORALE AND TRIGGERED SOME ADDITIONAL RESIGNATIONS MR TWER RESPONDS THAT EMPLOYEE TURNOVER HAS BEEN AT CUSTOMARY LEVELS FOR THIS TIME OF YEAR THE EXECUTIVES' EXODUS ALSO COULD HURT MARKET ACCEPTANCE OF DYNAMIC PAY HAY'S MAJOR NEW EFFORT AT UPDATING ITS PAYCONSULTING METHODS MR MCDANIEL OVERSAW THE US DEVELOPMENT OF DYNAMIC PAY UNVEILED IN MAY THE APPROACH SEEKS TO ALIGN SALARY STRUCTURES AND INCENTIVE PLANS MORE CLOSELY WITH A BUSINESS'S CORPORATE CULTURE AND STRATEGIES HAY OFFICIALS SAY DYNAMIC PAY IS BEING WELL RECEIVED THE INTRODUCTION OF DYNAMIC PAY AND OUR RECENT REVENUE SURGE IS NO COINCIDENCE MR TWER SAYS AND OUR MORALE ALWAYS IMPROVES WHEN OUR BUSINESS IMPROVES THAT'S WHAT WE'RE SEEING NOW MR TWER SAYS BUT TO REGAIN ITS POSITION IN THE MANAGEMENTCONSULTING FIELD OBSERVERS SAY HAY MUST OVERCOME ITS PREOCCUPATION WITH CASH FLOW AND OTHER INTERNAL ISSUES AND ATTEND TO ITS CLIENTS 9312300004 931230 ECONOMY INDEX OF LEADING INDICATORS ROSE 05 LAST MONTH INCREASE IS FOURTH IN A ROW ECONOMISTS HOWEVER SEE LATE '94 SLOWDOWN BY RACHEL ENGLEHART STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GOVERNMENT'S MEASURE OF FUTURE ECONOMIC ACTIVITY INCREASED AGAIN IN NOVEMBER DRIVEN MAINLY BY IMPROVEMENTS IN THE LABOR MARKET AND CONTINUING STRENGTH IN BUSINESS INVESTMENT THE COMMERCE DEPARTMENT SAID ITS INDEX OF LEADING INDICATORS ROSE 05 IN NOVEMBER THE INCREASE IS THE FOURTH CONSECUTIVE MONTHLY IMPROVEMENT AND COMES ON TOP OF ANOTHER 05 RISE IN OCTOBER THE INDEX IS MEANT TO GAUGE THE HEALTH OF THE ECONOMY SIX TO NINE MONTHS DOWN THE ROAD BUT DESPITE THE LATEST READING ANALYSTS SAID THAT IN SIX TO NINE MONTHS THE ECONOMY MAY WELL BE SLOWING FROM ITS RECENTLY QUICKENED PACE MORE THAN LIKELY THE ECONOMIC EUPHORIA WILL FADE IN THE SPRING SAID DAVID ORR CHIEF ECONOMIST FOR THE FIRST UNION NATIONAL BANK HOUSING AND CONSTRUCTION HAVE BEEN MAJOR FACTORS IN HELPING THE ECONOMY AND THAT CAN ONLY GO SO FAR SAID MARILYN SCHAJA MONEY MARKET ECONOMIST FOR DONALDSON LUFKIN & JENRETTE IN NEW YORK ONE REASON ANALYSTS SAY THE ECONOMY WILL GET A LITTLE SLUGGISH IN THE NEW YEAR IS THAT CONSUMER SPENDING HAS BEEN OUTPACING INCOME GAINS A TREND THAT'S UNLIKELY TO CONTINUE INDEFINITELY STILL ANALYSTS EXPECT GROWTH IN THE 3 RANGE FOR ALL OF 1994 EIGHT OF THE 11 INDICATORS THAT MAKE UP THE INDEX CONTRIBUTED TO NOVEMBER'S RISE THE BIGGEST CONTRIBUTORS WERE A DECLINE IN INITIAL CLAIMS FOR UNEMPLOYMENT INSURANCE WHICH SUGGESTS IMPROVING LABOR MARKET CONDITIONS AND INCREASING CONTRACTS AND ORDERS FOR PLANT AND EQUIPMENT A SIGN THAT BUSINESSES ARE INVESTING IN CAPITAL EQUIPMENT TO BOOST PRODUCTIVITY ALSO HELPING THE INDEX WERE IMPROVEMENTS IN SENSITIVE MATERIALS PRICES BUILDING PERMITS MANUFACTURER'S UNFILLED ORDERS FOR DURABLE GOODS THE AVERAGE WORKWEEK THE MONEY SUPPLY AND MANUFACTURERS' NEW ORDERS FOR CONSUMER GOODS AND MATERIALS THE THREE INDICATORS THAT HURT NOVEMBER'S READING WERE CONSUMER EXPECTATIONS THE PACE OF DELIVERIES AND STOCK PRICES ALL THE FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE NET CONTRIBUTIONS OF THE COMPONENTS OF THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS AFTER VARIOUS ADJUSTMENTS THEY PRODUCED A 05 RISE IN THE INDEX FOR NOVEMBER AND A 05 RISE FOR OCTOBER THE SEASONALLY ADJUSTED INDEX NUMBERS 1987=100 FOR NOVEMBER AND THE CHANGE FROM OCTOBER ARE THE RATIO OF COINCIDENT TO LAGGING INDICATORS WAS 114 UP FROM 113 IN OCTOBER 9312300003 931230 LETTERS TO THE EDITOR FEWER SMOKESTACKS MORE POVERTY IN HIS DEC 10 POTOMAC WATCH ON WELFARE WISCONSIN LEADS BELTWAY STRADDLES PAUL GIGOT SPOTLIGHTED THE WELFARE REFORM PROPOSALS OF WISCONSIN GOV TOMMY THOMPSON HIS PLAN TO LIMIT WELFARE BENEFITS TO TWO YEARS WAS LAUDED AS A BOLD PRESCRIPTION FOR THE COUNTRY'S PUBLIC ASSISTANCE CRISIS BUT THE DEPTH OF HIS COMMITMENT TO REAL WELFARE REFORM CAN BE GAUGED BY WHAT HAPPENED IN RACINE COUNTY THE COUNTY IS WITHDRAWING FROM A PLANNED EXPANSION OF THE STATE'S LEARNFARE PROGRAM A SLIGHTLY LESS PUNITIVE WELFARE REFORM MEASURE MR THOMPSON SIGNED IN 1987 UNDER LEARNFARE THE STATE ATTEMPTS TO ENCOURAGE EDUCATIONAL ACHIEVEMENT BY WITHHOLDING THE WELFARE CHECKS OF FAMILIES WHOSE CHILDREN SKIP SCHOOL HOWEVER STATE OFFICIALS PROMISED TO CHIP IN ONLY 37000 OF THE 175000 THAT THE COUNTY CONSIDERED NECESSARY TO FUND LEARNFARE THE COUNTY EXECUTIVE WHO SUPPORTED THOMPSON IN THE 1990 GUBERNATORIAL RACE DECLINED TO PARTICIPATE THERE'S LITTLE SURPRISE IN THE STATE'S MISERLY DECISION TOMMY THOMPSON AND MOST OF HIS FELLOW WELFARE REFORMERS AREN'T PRIMARILY CONCERNED WITH THE IMPLEMENTATION OF SERIOUS REFORM MEASURES RATHER THEY ARE MORE EXCITED ABOUT THE EXTRAORDINARY POLITICAL CAPITAL THAT CAN BE GAINED BY PROPOSING SIMPLEMINDED SOLUTIONS TO EXTREMELY COMPLEX SOCIAL AND ECONOMIC PROBLEMS MR THOMPSON LIKE MR GIGOT CONVENIENTLY IGNORES A GROWING BODY OF RESEARCH SUGGESTING THAT AMERICA'S CULTURE OF POVERTY CANNOT BE BLAMED EXCLUSIVELY OR EVEN PRINCIPALLY ON THE NATION'S WELFARE SYSTEM INSTEAD WRENCHING CHANGES IN THE US LABOR MARKET ARE ELIMINATING THE LOWSKILL AND SEMISKILLED JOBS THAT ONCE PROVIDED POOR AMERICANS WITH A CHANCE FOR A DECENT WAGE IT IS TELLING THAT MR GIGOT NEVER ONCE MENTIONS DEINDUSTRIALIZATION OR A DECLINE IN REAL WAGES AS FACTORS IN URBAN AMERICA'S DISINTEGRATION IN RACINE AS IN MANY OTHER WISCONSIN COMMUNITIES THE STEADY DISAPPEARANCE OF WELLPAID FACTORY WORK HAS LEFT A SICKLY PALL ON THE STRONG ECONOMY MR GIGOT PRAISES 9312300002 931230 MORE THAN EVER A MELTING POT BY KAY HAUGAARD A FEW SOMEONES OUT THERE ARE TRYING TO CHANGE OUR NATIONAL METAPHOR FROM MELTING POT TO SALAD BOWL SALAD BOWL PROPONENTS SAY THEIR METAPHOR SUGGESTS THAT THE ETHNIC INGREDIENTS IN OUR SOCIETY WILL RETAIN THEIR SEPARATE INDIVIDUALITY EVEN WHILE BEING TOSSED TOGETHER I PERSONALLY SAY PISH TOSH TO THE SALAD BOWL METAPHOR WHICH SEEMS CLEARLY BASED ON THE WISHFUL THINKING OF A SEPARATIST IDEOLOGY TOTALLY OUT OF TOUCH WITH REALITY WHEN I GO OUT SHOPPING I COMMONLY SEE INTERRACIAL COUPLES HOLDING HANDS PUSHING STROLLERS DOWN THE SOUP AISLE COMING OUT OF CHINESE RESTAURANTS STANDING IN LINE AT MOVIES MY HUSBAND AND I ARE MIDDLECLASS WHITES GERMAN SWEDISH DANISH FRENCH ENGLISH ETC MANY OF THE CHILDREN OF OUR WHITE FRIENDS RELATIVES AND NEIGHBORS HAVE MARRIED INTO OTHER RACES AND ETHNIC GROUPS A FEW OF THESE SPOUSES ARE A MALE MEDICAL STUDENT OF CHINESE DESCENT A TURKISH WOMAN DOCTOR A HAWAIIAN MAN A WOMAN BORN IN JAPAN A GORGEOUS DARKSKINNED BRAZILIAN WOMAN A SCOTTISHAMERICAN WHOSE SECOND HUSBAND IS HAWAIIAN HAS A REDHEADED SON BY HER FIRST MARRIAGE WHO MARRIED A BLACK CINEMATOGRAPHER ONE OF HER DAUGHTERS WHO IS ADOPTED AND PART AMERICAN INDIAN MARRIED AN IRANIAN THE SON OF ONE WHITE FRIEND MARRIED A WHITE WOMAN WHO BROUGHT WITH HER A MULATTO DAUGHTER FROM HER FORMER MARRIAGE ONE OF MY COUSINS MARRIED A WOMAN OF CHINESE DESCENT AND ONE OF MY SONS MARRIED A THIRDGENERATION AMERICAN OF JAPANESE DESCENT SHE SAYS ABOUT 60 OF AMERICANS OF JAPANESE EXTRACTION MARRY OUTSIDE THEIR RACE THE SON OF OUR WHITE/AMERICAN INDIAN INDIGENOUS AMERICAN FRIENDS MARRIED A BLOND WOMAN OF IRISH EXTRACTION ANOTHER OF THEIR SONS MARRIED A CHICANA THE SON OF ONE OF OUR BLACK NEIGHBORS MARRIED A CUBAN WOMAN HIS SISTER MARRIED A BLACK MAN FOR A WHILE THEN DIVORCED AND MARRIED A WHITE GERMANAMERICAN MY SON AND HIS WIFE HAVE TWO CHILDREN AND MOST OF THE OTHERS HAVE CHILDREN TOO THEN THERE IS THE COMMUNITY COLLEGE WHERE I TEACH THE MELTING POT IS ON HIGH AND BOILING FURIOUSLY THERE I SEE STUDENTS OF ALL RACES AND ETHNIC GROUPS HANGING ALL OVER EACH OTHER SMOOCHING IN THE HALLS ON THE WALKS APPEARING ON THE VERGE OF MERGING THEIR DNA ON THE SPOT MY STUDENTS ARE A RICH ETHNIC AMALGAM WITH VARIOUS COMBINATIONS OF PARENTS AND PARTNERS ONE PALE BLOND SCANDINAVIANAPPEARING MARRIED WOMAN HAS A JAPANESE SURNAME ONE WOMAN WITH A GERMAN SURNAME HAS A LONGTIME BLACK BOYFRIEND SOME STUDENTS ARE EURASIAN OTHERS ARE BLACK AND WHITE MIXED AND ONE DESCRIBES HIMSELF AS A BLACK/AMERICAN INDIAN MANY WOMEN WHO ARE NOT HISPANIC HAVE NAMES LIKE LOPEZ MORALES AND MONTEZ FROM THEIR HUSBANDS MANY STUDENTS HAVE HYPHENATED NAMES THAT ARE OFTENTIMES QUITE LONG AND ETHNICALLY DIVERSE SUCH AS NAKABAYASHIRODRIGUEZ ONE BLACK STUDENT MARRIED A WHITE PARATROOPER HE MET IN THE ARMY THEY HAVE TWO SMALL CHILDREN ANOTHER BLACK STUDENT SAYS HE IS NOT AN ACTIVIST AND WANTS ONLY TO PURSUE HIS STUDIES IN COMPUTER SCIENCE AND MARRY HIS BEAUTIFUL FILIPINA GIRLFRIEND ONE PLUMP WHITE WOMAN MARRIED AN AFRICAN IMMIGRANT FROM THE SUDAN THEY HAVE A LITTLE LIGHTSKINNED GIRL WITH BROWN RINGLETS ONE BLACK WOMAN LAW STUDENT'S FATHER IS WHITE OF GERMAN DESCENT ACTUALLY IT SEEMS TO BE A HIGHLY GUARDED SECRET THAT A LARGE NUMBER OF SIMPLISTICALLY LABELED BLACKS OR AFRICANAMERICANS ARE ACTUALLY QUITE RACIALLY MIXED THE AFRICAN ELEMENT IS SOMETIMES THE SMALLER PORTION DURING A DISCUSSION IN MY CLASS OF THE MELTING POT ONE OF MY BLACK MALE STUDENTS SUPPORTED THE METAPHOR BY SAYING THAT PHYSICAL ATTRACTIVENESS SEX APPEAL IS MUCH STRONGER THAN ANY INTELLECTUAL PRINCIPLES ABOUT ETHNIC PURITY HE SAID THAT HIS FATHER LIKED TO SAY TO HIS WHITE FRIENDS WHO WOULD YOU RATHER MARRY KATE SMITH OR LENA HORNE CULTURALLY WE ARE CERTAINLY A MELTING POT AS WELL AS LONG AS WE ARE TOGETHER IN SCHOOLS NEIGHBORHOODS SHOPPING AREAS CHURCHES LIBRARIES AND WORKPLACES AS LONG AS WE BUY THE SAME PRODUCTS SEE THE SAME TV SHOWS AND MOVIES GO TO THE SAME RESTAURANTS WE ARE BECOMING CULTURALLY HOMOGENIZED THERE WILL CONTINUE TO BE SPECIALIZED ETHNIC COMMUNITIES HOWEVER IN LOS ANGELES WE HAVE CHINATOWN JAPANTOWN KOREATOWN AREAS PREDOMINANTLY ARMENIAN BLACK OR LATINO AND MANY OTHERS BUT I DON'T BELIEVE THAT PEOPLE ARE BORN IN THEM AND REMAIN THERE THROUGHOUT THEIR LIVES THESE ARE PLACES WHERE NEW ARRIVALS AND THE OLDER PEOPLE WHO DO NOT WISH TO CHANGE LIVE YOUNG PEOPLE TEND TO SPILL INTO THE MAINSTREAM AND AS THE GENERATIONS PASS THEIR CULTURAL HERITAGES ARE MIXED INTO THE AMERICAN MELTING POT TOO I SAY BUBBLE BUBBLE LITTLE POT I PREFER THIS RICH BLEND OF FLAVORS COLORS AND TEXTURES TO THOSE OF A SALAD MS HAUGAARD IS A CREATIVE WRITING INSTRUCTOR AT PASADENA CITY COLLEGE IN CALIFORNIA 9312300001 931230 LETTERS TO THE EDITOR HOUSE GOP INITIATED REGIONAL PRISON IDEA AS CHAIRMAN OF THE REPUBLICAN HOUSE LEADERSHIP TASK FORCE ON CRIME I MUST CLARIFY A SERIOUS OMISSION IN AN OTHERWISE FINE ARTICLE BY BEN WATTENBERG CRIME SOLUTION LOCK 'EM UP EDITORIAL PAGE DEC 17 MR WATTENBERG FAILS TO MENTION THAT HOUSE REPUBLICANS WERE THE FIRST TO PROPOSE THE REGIONAL PRISON PROVISION HE LAUDS AS A SOLUTION IE FEDERAL/STATE PARTNERSHIP IN REGIONAL PRISONS FOR VIOLENT CRIMINALS THAT WOULD REQUIRE INMATES SERVE 85 OF THEIR SENTENCES THEY SHARED THIS IDEA WITH THEIR SENATE COLLEAGUES AND THE REGIONAL PRISON PROPOSAL APPEARED IN COMPREHENSIVE CRIME BILLS INTRODUCED SIMULTANEOUSLY IN THE HOUSE AND SENATE BY REPUBLICANS LAST SUMMER AS MR WATTENBERG NOTED THE SENATE PASSED A COMPREHENSIVE CRIME BILL INCLUDING THE REGIONAL PRISON PROVISION BEFORE CONGRESS RECESSED IN NOVEMBER BUT DESPITE REPEATED EFFORTS BY HOUSE REPUBLICANS TO GET A BILL TO THE FLOOR THE HOUSE DEMOCRATIC LEADERSHIP REBUFFED THESE EFFORTS AND THE HOUSE IS YET TO ACT ON MAJOR CRIME LEGISLATION NOW WITH PRESIDENT CLINTON PLACING THE FOCUS OF HIS ANTICRIME RHETORIC ON GUN CONTROL AND MORE COPS ON THE STREETS MR WATTENBERG CORRECTLY PERCEIVES THAT WHEN CONGRESS RECONVENES THE HOUSE DEMOCRATIC LEADERSHIP MAY SCUTTLE THE REGIONAL PRISON IDEA NO AMOUNT OF GUN CONTROL AND ADDITIONAL COPS ON THE STREETS ARE GOING TO SOLVE OUR CRISIS WITH VIOLENT CRIME ONLY WHEN WE STOP THE REVOLVING DOOR THAT LETS VIOLENT CRIMINALS OUT OF PRISON EARLY CAN WE HOPE TO REGAIN CONTROL OF OUR STREETS TO DO THAT WE NEED THE REGIONAL PRISON PROVISIONS AND WE NEED PRESIDENT CLINTON'S HELP WITH THE CONGRESSIONAL DEMOCRATIC MAJORITY TO MAKE IT HAPPEN 9312300176 931103 TEXAS JOURNAL ONCE HAILED AS A HEALTHCARE VISIONARY CHIEF OF METHODIST HOSPITAL NOW SEEN AS A TROGLODYTE BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON AT SEVERAL RECENT STAFF MEETINGS OF THE PRESTIGIOUS METHODIST HOSPITAL HERE CHIEF EXECUTIVE OFFICER LARRY MATHIS STOOD BEFORE EMPLOYEES TO MAKE AN ANNOUNCEMENT CONTRARY TO RUMORS HE DECLARED HE HADN'T BEEN DISMISSED IT'S AN ASSERTION THAT MR MATHIS HAS FELT COMPELLED TO MAKE MORE THAN ONCE THESE DAYS I'M NOT GOING TO BE FIRED AND I'M NOT GOING TO LEAVE THE 50YEAROLD EXECUTIVE SAYS DEFIANTLY IN AN INTERVIEW THAT MAY WELL BE TRUE IN INTERVIEWS SEVERAL LEADERS OF THE HOSPITAL'S 50MEMBER BOARD EXPRESS UNRESERVED SUPPORT FOR MR MATHIS WHO ALSO IS CURRENT CHAIRMAN OF THE AMERICAN HOSPITAL ASSOCIATION BUT MR MATHIS'S NEED TO PUBLICLY DEFEND HIS POSITION SPEAKS VOLUMES ABOUT THE STATE'S MOST PROMINENT HEALTHCARE EXECUTIVE AS WELL AS ABOUT THE UPHEAVAL IN TEXAS HEALTH CARE ONCE VIEWED AS THE EMBODIMENT OF ALL THAT WAS RIGHT WITH TEXAS HOSPITALS MR MATHIS NOW OFTEN FINDS HIMSELF PILLORIED AS A HEALTHCARE TROGLODYTE HIS INSISTENCE ON OFFERING NOTHING BUT THE BEST DOCTORS AND TECHNOLOGY EXPENSE BE DAMNED IS SEEN AS THE KIND OF THINKING THAT HAS LED TO THE EXPLOSION IN HEALTHCARE COSTS HE HAS TANGLED WITH THE STATE ATTORNEY GENERAL'S OFFICE OVER METHODIST'S RELUCTANCE TO DO MORE CHARITY WORK AND HE HAS BEEN SLOW TO ACCEPT THE MAJOR NATIONAL HEALTHCARE TREND OF THE PAST DECADE MANAGED CARE THE PARADIGM HAS CHANGED BUT HE HASN'T SAYS LELAND KAISER PRESIDENT OF KAISER & ASSOCIATES A BRIGHTON COLO HEALTHCARE CONSULTANT THE HEAT IS ON IT CERTAINLY IS AND MR MATHIS MAY HAVE LITTLE CHOICE BUT TO CHANGE BUT IT'S CLEAR THAT ANY CHANGE WILL COME RELUCTANTLY WHILE HE AGREES WITH SOME PRINCIPLES OF PRESIDENT CLINTON'S HEALTHCARE PROPOSALS INCLUDING UNIVERSAL COVERAGE MR MATHIS OPPOSES THE PLAN'S CUTS IN MEDICARE AND MEDICAID SPENDING AND ITS PRICE CAPS ON THE PRIVATE SECTOR THESE CUTS HE SAYS MAY MAKE IT DIFFICULT TO CONTINUE TO OFFER THE MOST UPTODATE TECHNOLOGY I REALLY REALLY LIKE LEADING AN ORGANIZATION THAT IS COMMITTED TO EXCELLENCE SAYS MR MATHIS WHO HAS BEGUN A COSTCUTTING PROGRAM TO ELIMINATE 650 OF METHODIST'S 7100 JOBS MOSTLY THROUGH ATTRITION AND EARLY RETIREMENT IT IS NOT EASY TO BEGIN TO DISMANTLE THE PROGRAMS I'VE HAD AND THAT THIS INSTITUTION HAS HAD FOR MOST OF HIS DECADELONG STINT AS METHODIST'S LEADER THE EMPHASIS HAS BEEN ON BUILDING NOT DISMANTLING HIRED AS CHIEF EXECUTIVE IN 1983 AFTER WORKING HIS WAY UP FROM ADMINISTRATIVE ASSISTANT MR MATHIS QUICKLY SET ABOUT TURNING METHODIST ALREADY A RESPECTED TEACHING HOSPITAL INTO A WORLDCLASS INSTITUTION ONE OF HIS FIRST MOVES WAS TO CONVENE A TASK FORCE TO EXAMINE PATIENTS' IMPRESSIONS WHEN THE GROUP DISCOVERED THAT PATIENTS FELT HASSLED BY INCONVENIENT PARKING AND THE LACK OF CLEAN CLOTHES FOR LONG STAYS MR MATHIS'S ADMINISTRATION ADDED VALET PARKING AND A LAUNDRY ALONG WITH OTHER HOTELLIKE AMENTITIES HE ALSO LED METHODIST THROUGH A 250 MILLION BUILDING PROGRAM THAT MADE METHODIST THE LARGEST NONPROFIT HOSPITAL IN THE NATION HIS PHILOSOPHY WAS SEEN AS ON THE CUTTING EDGE OF HOSPITAL ADMINISTRATION SAYS UWE REINHARDT A HEALTHCARE ECONOMIST AT PRINCETON UNIVERSITY IN THE '80S TRUSTEES EVERYWHERE DECIDED THAT WHAT'S REALLY WRONG IS THAT PEOPLE THINK THIS HOSPITAL IS A LOCAL YMCA IT SHOULD BE RUN LIKE A BUSINESS' HE SAYS THAT KIND OF THINKING CLEARLY PAID OFF FOR METHODIST BY LAST YEAR NET PATIENT REVENUE OF THE METHODIST HOSPITAL SYSTEM INCLUDING METHODIST AND A SMALLER HOSPITAL IN BAYTOWN HAD MORE THAN DOUBLED TO 483 MILLION FROM 189 MILLION IN 1983 BUT IN THE CURRENT ENVIRONMENT THAT KIND OF SUCCESS ISN'T CONSIDERED WELL MUCH OF A SUCCESS AS BUSINESSES AND GOVERNMENT SWING INTO GEAR TO BEAT DOWN SOARING HEALTHCARE COSTS TOPOFTHELINE FACILITIES SUCH AS METHODIST STAND AS SYMBOLS OF PROFLIGACY METHODIST ALSO HAS DRAWN FIRE LATELY BECAUSE IT HAS TAXEXEMPT STATUS AS A PRIVATE NONPROFIT HOSPITAL BUT HAS HAD ONE OF THE WORST TRACK RECORDS IN THE STATE IN PROVIDING CHARITY CARE FROM 1986 TO 1990 METHODIST PROVIDED 26 MILLION OR A BIT MORE THAN 1 OF ITS PATIENTCARE REVENUE IN CHARITY CARE ACCORDING TO THE STATE ATTORNEY GENERAL'S OFFICE IN 1990 THE ATTORNEY GENERAL SUED METHODIST ARGUING THAT AS A TAXEXEMPT FACILITY IT HAD A SPECIAL RESPONSIBILITY TO CARE FOR THE POOR A STATE DISTRICT COURT JUDGE RULED IN METHODIST'S FAVOR IN JUNE SAYING THAT THE ATTORNEY GENERAL DIDN'T HAVE THE AUTHORITY TO TELL A CHARITABLE INSTITUTION HOW TO SPEND ITS MONEY MR MATHIS THEN ENDORSED A STATE LAW THAT REQUIRES HOSPITALS TO SPEND 3 OF NET PATIENT REVENUE ON CHARITY CARE METHODIST SAYS IT PROVIDES MORE CHARITY CARE THAN THE NEW LAW REQUIRES BUT MANY WONDER IF IT ISN'T TOO LATE HE WON THE LAWSUIT BUT LOST THE MORALITY PLAY SAYS RON ANDERSON HEAD OF PARKLAND MEMORIAL HOSPITAL A PUBLIC FACILITY IN DALLAS IN SOME WAYS THOUGH IT IS MR MATHIS'S RESISTANCE TO MANAGED CARE THAT MAY PROVE MORE DAMAGING TO HIM IN THE LONG RUN IN 1987 MR MATHIS TOLD THE LOCAL PAPER THERE'S NOT ONE CONTRACT PATIENT IN THIS HOUSE AND AS LONG AS I CAN KEEP IT THAT WAY I WILL ONLY THIS YEAR UNDER PRESSURE FROM METHODIST'S OWN DOCTORS HAS MR MATHIS BUDGED ON THE ISSUE OF MANAGED CARE DOCTORS FELT THEY WERE BEGINNING TO LOSE MONEY BECAUSE THEY COULDN'T ADMIT THE GROWING NUMBER OF PATIENTS IN MANAGEDCARE PLANS SAYS JAMES A FRIEDMAN PAST PRESIDENT OF THE HOSPITAL'S MEDICAL STAFF MR MATHIS SAYS THOSE WHO CRITICIZE HIM FOR RESISTING MANAGED CARE FOR SO LONG HAVE A VALID CONCERN BUT HE ARGUES THAT METHODIST WAS ABLE TO STRENGTHEN ITS FINANCIAL BASE BY HOLDING OUT BUILDING UP 678 MILLION IN CASH RESERVES METHODIST WILL ENTER THE MANAGEDCARE MARKET PRETTY STRONG HE SAYS HIS SUPPORTERS NOTE THAT METHODIST JUST BOUGHT DIAGNOSTIC CENTER HOSPITAL WHICH WITH ITS GROUP OF PRIMARYCARE DOCTORS WOULD BE A BOON TO A METHODISTLINKED MANAGEDCARE PLAN THAT MOVE IMPRESSED DAVID M UNDERWOOD AN INVESTMENT BANKER WHO IS ON METHODIST'S BOARD MR MATHIS HAS DEMONSTRATED AN OPENNESS TO NEW WAYS AND A WILLINGNESS TO CHANGE THE WAY HE'S DOING THINGS MR UNDERWOOD SAYS BUT MR MATHIS WHO PLANS TO RETIRE WHEN HE TURNS 55 SAYS HE WILL FIGHT TO KEEP METHODIST A WORLDCLASS FACILITY THERE WILL ALWAYS BE VERY SICK PEOPLE IN OUR SOCIETY HE SAYS THERE WILL ALWAYS BE PEOPLE WHO NEED THE VERY MOST COMPLEX AND DIFFICULT CARE OUR CHALLENGE IS TO FIND A WAY TO FINANCE IT IN THESE CHANGED ENVIRONMENTS 9312300156 931103 TEXAS JOURNAL THE CARREPAIR LOBBY IS SURE TO SCREAM ABOUT THIS BY SCOTT MCCARTNEY EARLY DETECTION FOR POTHOLES RESEARCHERS AT THE UNIVERSITY OF TEXAS AT EL PASO HAVE DEVISED A MACHINE THAT USES SEISMIC WAVES GENERATED BY TINY HAMMERS TO INSPECT ASPHALT PINPOINTING MAINTENANCE NEEDS BEFORE POTHOLES SPROUT THE MACHINE WHICH FITS IN A SMALL TRAILER AND COSTS 80000 WILL BE DELIVERED NEXT YEAR TO THE TEXAS DEPARTMENT OF TRANSPORTATION FOR FURTHER TESTING SAYS SOHEIL NAZARIAN AN ASSOCIATE PROFESSOR OF CIVIL ENGINEERING AT THE UNIVERSITY OF TEXAS WHO HAS BEEN WORKING ON THE MACHINE FOR 12 YEARS IF THIS CAN HELP US SAVE A FRACTION OF THE TAX DOLLARS WE PAY TO MAINTAIN OUR HIGHWAYS IT WILL PAY FOR ITSELF 9312300154 931117 TEXAS JOURNAL ON THE BORDER BANKER VS BANKER BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL LAREDO NAFTA IS DIVIDING THE NATION BUT IN THIS BUSTLING BORDER TOWN IT HAS UNITED TWO OF THE STATE'S MOST BITTER BUSINESS RIVALS DENNIS NIXON AND GARY JACOBS AT LEAST FOR THE MOMENT PUTTING ASIDE A HATFIELDMCCOYSTYLE FEUD THAT HAS FOUND THEM ON OPPOSITE SIDES OF ALMOST EVERY MAJOR ISSUE HERE FOR THE PAST TWO DECADES THE TWO BANKERS HAVE THROWN THEMSELVES INTO LOBBYING FOR THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH WOULD CREATE A GIANT FREETRADE ZONE OUT OF MEXICO THE US AND CANADA FEW PEOPLE WILL BE WATCHING THE RESULTS OF TODAY'S NAFTA VOTE IN THE HOUSE OF REPRESENTATIVES MORE CLOSELY IT'S EASY TO SEE WHY NOT ONLY WOULD NAFTA ALMOST SURELY STIMULATE THE ECONOMY OF SOUTHERN TEXAS BUT IT WOULD ALSO ALLOW US BANKS TO OPEN FULLSERVICE OPERATIONS IN MEXICO AS HEADS OF THE TWO LARGEST BANKS ALONG THE TEXASMEXICO BORDER MR NIXON PRESIDENT AND CHIEF EXECUTIVE OF INTERNATIONAL BANK OF COMMERCE AND MR JACOBS PRESIDENT AND CEO OF LAREDO NATIONAL BANK WOULD ALMOST INSTANTLY RISE INTO THE ELITE OF TEXAS BANKING BECAUSE OF THEIR EXTENSIVE CONTACTS AND EXPERIENCE IN MEXICO NAFTA IS THE ULTIMATE PAYOFF FOR THE EFFORTS THESE GUYS HAVE PUT INTO MEXICO SAYS DON VAN STONE FORMER HEAD OF SOUTH TEXAS OPERATIONS FOR FIRST CITY BANCORP OF TEXAS THEY STAND TO BECOME FINANCIAL POWER BROKERS IN THE REGION THAT IS IF THEY DON'T KILL EACH OTHER FIRST THE COMMON GOAL OF GETTING NAFTA PASSED HASN'T DULLED THEIR PATENT DISLIKE FOR EACH OTHER AND IT'S SOMETIMES HARD TO BELIEVE THAT MEXICO MUCH LESS LAREDO WILL BE BIG ENOUGH FOR BOTH OF THEM THOUGH MR JACOBS PLAYS DOWN ANY HINT OF RIVALRY IT IS OBVIOUS TO EVERYONE ELSE INCLUDING MR NIXON WHO CALLS IT INTENSE AT TIMES BUT IBC WHICH HOLDS THE MORTGAGE ON LA POSADA HOTEL IN THE CITY CENTER HAS FOUGHT THE PROPOSAL AND DONATED 5000 TO A CAMPAIGN TO DEFEAT IT LAST YEAR VOTERS REJECTED THE PROPOSED BOND ISSUE TWO WEEKS AGO FOR THE SECOND TIME MR JACOBS MEANWHILE IS FIGHTING A PROPOSED PRIVATE TOLL ROAD THAT WOULD CONNECT INTERSTATE 35 WITH THE NEW COLOMBIASOLIDARITY BRIDGE INTO MEXICO BYPASSING LAREDO HE SAYS THE ROAD WOULD HURT THE CITY ECONOMICALLY THOUGH CRITICS NOTE THAT HIS FAMILY OWNS LAND ALONG AN ALTERNATIVE ROUTE TO THE BRIDGE MR NIXON WHOSE BANK HAS PROVIDED LOANS TO SOME LANDOWNERS WHO WOULD BENEFIT FROM THE TOLL ROAD ARGUES THAT IT WOULD HELP EXPAND THE CITY'S ECONOMIC BASE AND HE LIKENS MR JACOBS'S OPPOSITION TO THE MEASURE TO ROSS PEROT'S DISTASTE FOR NAFTA THEY'RE BOTH IDIOTS MR JACOBS'S REPLY HE CALLED ME AN IDIOT I DON'T MIND I JUST DON'T LIKE BEING COMPARED TO THE ONE TEXAN I HATE AND SO IT GOES THE TWO CONSTANTLY SNIPING OVER MATTERS LARGE AND SMALL TO THE GROWING IRRITATION OF SOME FELLOW CITIZENS THEY'RE A COUPLE OF UNATTRACTIVE PERSONALITIES WHO MIX LIKE OIL AND WATER SAYS JOHN KECK PRESIDENT OF THE NO 3 BANK IN TOWN UNION NATIONAL BANK OF TEXAS HE CALLS THEM AN EMBARRASSMENT TO LAREDO THAT MAY BE BUT BOTH MEN ARE POISED TO BECOME MUCH MORE PROMINENT IN TEXAS BANKING ESPECIALLY IF NAFTA PASSES AND THE WAY THEY GOT THERE SAYS A LOT ABOUT THE UNIQUE BANKING ENVIRONMENT ALONG THE TEXASMEXICO BORDER UNTIL THE LATE '70S LAREDO WAS JUST ANOTHER BORDER BURG SHARING ITS STRETCH OF THE RIO GRANDE WITH ITS MEXICAN SISTER CITY NUEVO LAREDO THEN THE MAQUILADORA PROGRAM DREW MANY US MANUFACTURERS TO THE AREA CREATING BORDER ZONES WHERE THEY COULD USE CHEAP MEXICAN LABOR TO PRODUCE GOODS LARGELY TARIFFFREE FOR SHIPMENT TO THE US THE TIMING COULDN'T HAVE BEEN BETTER FOR MESSRS JACOBS AND NIXON WHO BECAME HEADS OF THEIR RESPECTIVE BANKS IN 1975 FOR MR JACOBS THEN 34 YEARS OLD AND WORKING IN COMPUTER BANK OPERATIONS HIS ASCENT WAS EASED BY THE FACT THAT I MARRIED THE BANKER'S DAUGHTER AS HE SAYS HE IS THE SONINLAW OF MAX MANDEL A PRINCIPAL OWNER OF LAREDO NATIONAL AT THE TIME MR NIXON ON THE OTHER HAND CAME TO IBC AS PRESIDENT AFTER SEVERAL YEARS AS A FEDERAL BANK EXAMINER AND LATER AS AN EXECUTIVE VICE PRESIDENT AT LAREDO'S UNION NATIONAL BOTH MEN HELPED DRIVE LAREDO'S TRADE GROWTH IN THEIR EARLY DAYS THEY TRAVELED TO MEXICO WEEKLY CALLING ON BUSINESS LEADERS AS FAR SOUTH AS GUADALAJARA AND MEXICO CITY BOTH BANKS BOUGHT JETS TO HELP THEM GET AROUND MR JACOBS AND LNB FINANCED THE FIRST LAREDOAREA MAQUILA PARK IN 1978 AND DREW TO THE REGION DIVISIONS OF CATERPILLAR INC FORD MOTOR CO AND GENERAL MOTORS CORP IBC HELPED FUND MUCH OF THE SERVICE INDUSTRY THE CUSTOMS BROKERS FREIGHT FORWARDERS AND WAREHOUSERS THAT GREW UP ALONGSIDE THE MAQUILAS THE BANKS ALSO MADE THEMSELVES HAVENS FOR MEXICANS WHO WANTED TO KEEP THEIR SAVINGS IN DOLLARS DURING TIMES OF POLITICAL UNCERTAINTY WITH PRIVATE BANKING SERVICES THAT CATERED TO WEALTHY INDIVIDUALS WHO PLACED A PREMIUM ON DISCRETION THE BUSINESS HAD ITS UPS AND DOWNS WHILE MOST TEXAS BANKS THRIVED IN THE EARLY '80S MEXICAN ECONOMIC PROBLEMS AND PESO DEVALUATIONS HURT LAREDO'S INSTITUTIONS YET BY THE LATE '80S HAVING AVOIDED SPECULATIVE REALESTATE INVESTMENTS LNB AND IBC HAD BECOME TWO OF THE MOST PROFITABLE BANKS IN THE STATE UNDER MR NIXON IBC GREW FROM NO 3 IN A THREEBANK TOWN INTO A DYNAMO OUR PHILOSOPHY WAS TO TURN OVER THE APPLE CART GRAB THE OTHER GUY'S CUSTOMERS WHERE WE COULD AND AGGRESSIVELY COURT NEW BUSINESS SAYS MR NIXON WHO GRABBED FROM LNB THE ACCOUNTS OF THE LOCAL MONTGOMERY WARD AND SEARS STORES AMONG OTHERS LAREDO NATIONAL BEGAN PRICING ITS SERVICES MORE COMPETITIVELY AND GREW MORE AMBITIOUS IN ITS LENDING BUT IN 1990 IBC ECLIPSED LAREDO NATIONAL TO BECOME THE LARGEST BANK ON THE BORDER IT NOW HAS NEARLY 18 BILLION IN ASSETS TO LNB'S 14 BILLION WE'VE TAKEN THE WIND OUT OF THEIR SAILS SAYS MR NIXON MR JACOBS RETORTS IF DENNIS NIXON THINKS I WAKE UP EVERY MORNING WORRIED ABOUT HIM AND HIS BANK HE'S WRONG POLITICAL EDGE THOUGH LNB IS NOW SMALLER MANY LOCAL LEADERS GIVE MR JACOBS A REPUBLICAN THE EDGE IN POLITICAL CLOUT SOUTH OF THE BORDER THREE OF LAREDO NATIONAL'S SIX VOTING DIRECTORS ARE PROMINENT MEXICANS INCLUDING ROMULO O'FARRILL WHO RECENTLY RETIRED AS CHAIRMAN OF MEXICAN MEDIA GIANT GRUPO TELEVISA MEXICAN INVESTORS HAVE OWNED A CONTROLLING STAKE OF LNB SINCE 1989 MR JACOBS OWNS AN UNSPECIFIED INTEREST IN THE BANK I'D SAY HE'S WELLKNOWN INSIDE THE MEXICAN GOVERNMENT SAYS ROBERT W CHANDLER JR ACTING CHIEF EXECUTIVE AT BANORTE A MONTERREY MEXICO BANK WHEN THENVICE PRESIDENT DAN QUAYLE ESCORTED AN ENTOURAGE OF US BUSINESS CHIEFS ON A 1991 TOUR OF SEVERAL LATIN AMERICAN NATIONS MR JACOBS WAS INCLUDED THE ONLY BANKER ON THE TRIP AND THE ONLY PARTICIPANT FLUENT IN SPANISH GARY IN FACT HAS BECOME VERY LATINO IN HIS MANNERISMS SAYS ALFONSO MARTINEZFONTS JR PRESIDENT OF TEXAS COMMERCE BANCSHARES INC'S SAN ANTONIO BANK UNLIKE MOST US BANKERS WHO DEAL IN MEXICO MR MARTINEZFONTS ADDS MR JACOBS ISN'T SHY ABOUT GIVING AN ABRAZO THE EMBRACE MEN SHARE THROUGHOUT LATIN AMERICA HE FITS IN BUT MR NIXON A DEMOCRAT ALSO HAS A HIGH PROFILE HIS BANK HAD MEXICAN DIRECTORS A DECADE BEFORE MR JACOBS'S ONETHIRD OF HIS CURRENT 60 ADVISORY DIRECTORS ARE MEXICAN NATIONALS STILL LNB OFFICERS LIKE TO JOKE ABOUT HIS LACK OF SPANISH NOTING THAT HE INSISTED ON NAMING IBC'S RIVERSIDE CORPORATE RETREAT LAGO DEL RIO OR LAKE OF THE RIVER LATELY BOTH MEN HAVE DEVOTED EVERY OUNCE OF POLITICAL MUSCLE TO SUPPORTING NAFTA MR JACOBS WHO SERVED ON THE ORIGINAL US COMMITTEE THAT OUTLINED THE ACCORD HAS BEEN TO WASHINGTON FOUR TIMES THIS YEAR ON NAFTARELATED BUSINESS ONE OF MR NIXON'S TOP OFFICERS JORGE HAYNES IS PART OF PRESIDENT CLINTON'S NAFTA TASK FORCE BUT MESSRS JACOBS AND NIXON'S MUTUAL INTEREST IN NAFTA DOESN'T MEAN THEY ARE MOVING TOWARD A TRUCE JAMES P MASINO PRESIDENT OF LAREDOBASED DENTEX SHOE CORP WHOSE MAQUILA BANKS AT BOTH IBC AND LAREDO NATIONAL SAYS THAT TO CALL THEIR RELATIONSHIP A COMPETITION IS THE UNDERSTATEMENT OF THE CENTURY 9312300153 931103 TEXAS JOURNAL STAR OF TEXAS OPENS LOTS OF FAMILY FUN THREE POOLS AND GAMBLING BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL IT'S NOT SO MUCH WHAT YOU DO AS WHAT YOU SAY YOU DO THAT ANYWAY SEEMS TO BE THE MESSAGE BEHIND TOMORROW'S PLANNED OPENING OF THE 650FOOT STAR OF TEXAS A CASINO SHIP OPERATING AT DOCKSIDE IN GALVESTON ALTHOUGH THE STAR OF TEXAS MAY TEND TO DRIFT OVER THE LINE OF FEDERAL AND STATE GAMBLING LAWS IT WILL DO SO QUIETLY AND THAT MAY MAKE ALL THE DIFFERENCE IN DISCUSSIONS WITH THE US ATTORNEY'S OFFICE IN HOUSTON SAYS PETER CATALANO CHAIRMAN AND CHIEF OPERATING OFFICER OF GOLD STAR INTERNATIONAL INC WHICH OWNS THE SHIP WE WANTED TO UNDERSTAND WHAT THE LAW WAS AND WHAT OUR PREDECESSOR DID OR DIDN'T DO THAT CAUSED SOME PROBLEMS SIMPLE THE FEDS TOLD HIM GAMBLING SHIPS THAT CRUISE OUT OF US PORTS AREN'T GENERALLY ALLOWED TO HAVE MORE THAN 50 OF THEIR FLOOR SPACE SET ASIDE FOR GAMBLING THAT AMONG OTHER LEGAL SHORTCOMINGS FORCED GALVESTON'S LAST GAMING SHIP THE PRIDE OUT OF BUSINESS IN 1992 BUT MR CATALANO SAYS PROSECUTORS HAVE GIVEN THEIR BLESSINGS THIS TIME AROUND AS LONG AS THE STAR OF TEXAS EMPHASIZES FAMILY ACTIVITIES ALONG WITH GAMBLING WE HAVE TAKEN GREAT PAINS TO MAKE IT CLEAR THAT WE'RE A CRUISE SHIP MR CATALANO SAYS OUR CASINO SPACE ABOUT 14000 SQUARE FEET REPRESENTS ONLY ABOUT 6 OF OUR TOTAL WE'RE A FAMILY EXPERIENCE WITH THREE SWIMMING POOLS BUT ISN'T GAMBLING THE MAIN ATTRACTION PERHAPS CONCEDES MR CATALANO WHO SAYS THE VESSEL WILL MOSTLY CRUISE TO NOWHERE FOR SIX HOURS AT A TIME BUT HE ADDS I DON'T EVEN LIKE TO USE THE WORD GAMBLING I GAMBLE BUT I CALL MYSELF A PLAYER IT'S NOT SO MUCH WHAT YOU DO AS WHAT YOU SAY YOU DO THAT ANYWAY SEEMS TO BE THE MESSAGE BEHIND TOMORROW'S PLANNED OPENING OF THE 650FOOT STAR OF TEXAS A CASINO SHIP OPERATING AT DOCKSIDE IN GALVESTON ALTHOUGH THE STAR OF TEXAS MAY TEND TO DRIFT OVER THE LINE OF FEDERAL AND STATE GAMBLING LAWS IT WILL DO SO QUIETLY AND THAT MAY MAKE ALL THE DIFFERENCE IN DISCUSSIONS WITH THE US ATTORNEY'S OFFICE IN HOUSTON SAYS PETER CATALANO CHAIRMAN AND CHIEF OPERATING OFFICER OF GOLD STAR INTERNATIONAL INC WHICH OWNS THE SHIP WE WANTED TO UNDERSTAND WHAT THE LAW WAS AND WHAT OUR PREDECESSOR DID OR DIDN'T DO THAT CAUSED SOME PROBLEMS SIMPLE THE FEDS TOLD HIM GAMBLING SHIPS THAT CRUISE OUT OF US PORTS AREN'T GENERALLY ALLOWED TO HAVE MORE THAN 50 OF THEIR FLOOR SPACE SET ASIDE FOR GAMBLING THAT AMONG OTHER LEGAL SHORTCOMINGS FORCED GALVESTON'S LAST GAMING SHIP THE PRIDE OUT OF BUSINESS IN 1992 BUT MR CATALANO SAYS PROSECUTORS HAVE GIVEN THEIR BLESSINGS THIS TIME AROUND AS LONG AS THE STAR OF TEXAS EMPHASIZES FAMILY ACTIVITIES ALONG WITH GAMBLING WE HAVE TAKEN GREAT PAINS TO MAKE IT CLEAR THAT WE'RE A CRUISE SHIP MR CATALANO SAYS OUR CASINO SPACE ABOUT 14000 SQUARE FEET REPRESENTS ONLY ABOUT 6 OF OUR TOTAL WE'RE A FAMILY EXPERIENCE WITH THREE SWIMMING POOLS BUT ISN'T GAMBLING THE MAIN ATTRACTION PERHAPS CONCEDES MR CATALANO WHO SAYS THE VESSEL WILL MOSTLY CRUISE TO NOWHERE FOR SIX HOURS AT A TIME BUT HE ADDS I DON'T EVEN LIKE TO USE THE WORD GAMBLING I GAMBLE BUT I CALL MYSELF A PLAYER 9312300152 931103 TEXAS JOURNAL A BAD MEAL MOST PEOPLE JUST SEND THE FOOD BACK BY MICHAEL TOTTY FOR DECADES CARMEN'S LA TAPATIA HAS BEEN A POPULAR HAUNT FOR AUSTIN DINERS BLUECOLLAR WORKERS AND BLUESUITED POWER BROKERS ALIKE NO SURPRISE THEN THAT STATE COMPTROLLER JOHN SHARP PICKED THE EASTSIDE MEXICAN RESTAURANT FOR LUNCH LAST MONTH WITH A FEW LOCAL BUSINESS EXECUTIVES INSTEAD OF CHIPS AND SALSA HOWEVER MR SHARP AND HIS COMPANIONS FOUND THE DOORS LOCKED AND A WARNING PASTED ON THE DOOR THIS PROPERTY HAS BEEN SEIZED FOR NONPAYMENT OF TAXES OWED TO THE STATE OF TEXAS IT WAS SIGNED BY JOHN SHARP COMPTROLLER OF PUBLIC ACCOUNTS THE DAY BEFORE TAXENFORCEMENT AGENTS FROM THE COMPTROLLER'S OFFICE HAD CLOSED THE RESTAURANT FOR FAILING TO PAY MORE THAN 68000 IN BACK SALES TAXES AGENTS HAD ENTERED AT THE END OF THE LUNCH RUSH SURPRISING A FEW COMPTROLLER EMPLOYEES WHO WERE DINING THERE MR SHARP PLEADED IGNORANCE OF HIS AGENTS' ACTION ONE OF ABOUT A DOZEN AROUND THE STATE EACH YEAR BUT HIS GUESTS WERE DUBIOUS DID YOU BRING US BY TO BRAG ONE OF MR SHARP'S ACQUAINTANCES WANTED TO KNOW OR IS THIS A WARNING 9312300150 931109 MCDONALD'S STAFF WANTS A BREAK TODAY AT CANADA FRANCHISE TEENAGE EMPLOYEE TRIGGERS FIRST CAMPAIGN TO UNIONIZE AT THE FASTFOOD OPERATOR BY MARK HEINZL STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO A 16YEAROLD HIGHSCHOOL STUDENT HAS TRIGGERED A DRIVE TO UNIONIZE THE MCDONALD'S RESTAURANT WHERE SHE WORKS PART TIME WHICH WOULD BE A FIRST FOR THE WORLD'S LARGEST FASTFOOD CHAIN LAWYERS FOR THE RESTAURANT A FRANCHISED OPERATION IN ORANGEVILLE ONTARIO AND THE UNION ARE ARGUING BEFORE THE ONTARIO LABOR RELATIONS BOARD WHICH WILL DECIDE WHETHER TO CERTIFY THE MCDONALD'S EMPLOYEES AS A UNION THE SERVICE EMPLOYEES INTERNATIONAL UNION SAID 67 OF THE 102 RESTAURANT WORKERS VOTED TO JOIN THE UNION IN A BID TO IMPROVE WORKING CONDITIONS WAGES AND BENEFITS AND STOP WHAT IT CALLED UNJUSTIFIED FIRINGS OR THREATS OF FIRINGS BOTH SIDES DECLINED TO IDENTIFY THE PARTTIME WORKER WHO SPEARHEADED THE CAMPAIGN A LAWYER FOR THE RESTAURANT'S FRANCHISEE SAID MORE THAN 30 TEENAGE WORKERS WHO VOTED TO UNIONIZE HAVE RECENTLY CHANGED THEIR MINDS AND NOW WANT TO REVOKE THEIR VOTE FOR UNIONIZATION BUT MARY CORNISH A LAWYER REPRESENTING THE UNION SAID THE RESTAURANT'S MANAGERS USED UNDUE PRESSURE TO MAKE THE EMPLOYEES CHANGE THEIR MINDS THE LABOR BOARD WILL HEAR ARGUMENTS FROM LAWYERS FOR THE FRANCHISEE AND THE UNION AND DECIDE WHETHER THE WORKERS HAVE THE REQUIRED MAJORITY TO JOIN THE UNION BUT THE CASE COULD TAKE SEVERAL MONTHS MCDONALD'S AND OTHER FASTFOOD CHAINS ARE A WHOLE NEW FIELD FOR THE UNION WHICH IS PLANNING TO UNIONIZE MANY OTHER MCDONALD'S RESTAURANTS IN ONTARIO SAID UNION SPOKESMAN MARK ORTLIEB MCDONALD'S RESTAURANTS OF CANADA LTD IS SITTING ON THE SIDELINES IN THIS CASE SINCE THE EMPLOYEES AT THE ORANGEVILLE RESTAURANT ARE THE RESPONSIBILITY OF THE FRANCHISEE SAID ROY ELLIS VICEPRESIDENT OF HUMAN RESOURCES MR ELLIS DECLINED TO SAY IF MCDONALD'S WOULD CHALLENGE ANY UNIONIZATION BID AT ITS CORPORATEOWNED RESTAURANTS BUT SAID WE'RE CERTAINLY NOT ANTIUNION I'M PROCAM BALLANTYNE SAID CAM BALLANTYNE THE FRANCHISEE OF THE ORANGEVILLE RESTAURANT MR BALLANTYNE SAID HE HAS A GREAT WORKING RELATIONSHIP WITH HIS STAFF AND HE ISN'T AWARE OF ANY SITUATIONS WHERE MANAGERS TRIED TO INFLUENCE WORKERS' DECISIONS ABOUT UNIONIZING OFFICIALS AT MCDONALD'S CORP IN OAK BROOK ILL AND TORONTO SAID NONE OF THE 13670 MCDONALD'S RESTAURANTS WORLDWIDE ARE UNIONIZED ABOUT 9600 OF THE RESTAURANTS ARE OPERATED BY FRANCHISEES WORKERS AT A MCDONALD'S CORP RESTAURANT FRANCHISE IN MASON CITY IOWA WERE REPRESENTED BY A UNION FOR A FEW YEARS STARTING IN 1971 AN ARTICLE TUESDAY SAID THAT AN EFFORT TO ORGANIZE A MCDONALD'S FRANCHISE IN ONTARIO WOULD MARK THE FIRST UNIONIZED MCDONALD'S RESTAURANT IF IT WERE SUCCESSFUL SEE RELATED LETTER LETTERS TO THE EDITOR UNIONIZING BIG MAC WSJ DEC 30 1993 9311090019 YY93 MM12 9312300144 931117 TEXAS JOURNAL SO YOU THINK THE FIGHT ENDS TODAY WELL BY ROBERT TOMSHO AS THE FIGHT OVER THE FATE OF THE NORTH AMERICAN FREE TRADE AGREEMENT BUILDS TO A CLIMAX IN WASHINGTON CONCERNS ARE GROWING IN TEXAS ABOUT THE FATE OF A PLANNED BORDER OFFICE FOR THE ENVIRONMENTAL PROTECTION AGENCY PROPOSALS FOR THE OFFICE GREW OUT OF NAFTARELATED CONCERNS ABOUT POLLUTION ALONG THE USMEXICO BORDER AND WITH OR WITHOUT CONGRESSIONAL APPROVAL OF THE AGREEMENT THE EPA WILL REMAIN UNDER PRESSURE TO OPEN SUCH AN OFFICE BUT SOME TEXANS ARE STARTING TO WORRY ABOUT WHAT KIND OF OFFICE IT WILL BE AND WHERE IT WILL BE LOCATED IN FEBRUARY REP RONALD COLEMAN A DEMOCRAT FROM EL PASO INTRODUCED A BILL THAT WOULD IN EFFECT REQUIRE THE EPA TO PUT IT IN HIS HOMETOWN LOCATED AT ROUGHLY THE MIDWAY POINT ALONG THE 2000MILE BORDER BETWEEN THE TWO NATIONS IN SEPTEMBER EPA ADMINISTRATOR CAROL BROWNER SAID THE AGENCY PLANNED TO OPEN A BORDER OFFICE BUT SHE DIDN'T SAY WHERE THOUGH OTHER BORDER CITIES HAVEN'T MADE ANY FORMAL BIDS EL PASO IS LIKELY TO FACE COMPETITION FROM A BIG CITY CLOSE TO THE BORDER SAN DIEGO REP BOB FILNER A DEMOCRAT FROM SAN DIEGO BACKS THE EFFORT TO CREATE AN EPA BORDER PRESENCE BUT DOESN'T THINK EL PASO SHOULD HAVE THE ONLY OFFICE I THINK WE SHOULD HAVE MAYBE A COUPLE OF THEM HE SAYS BUT EVEN CREATING ONE BORDER OFFICE COULD BE A PAIN IN THE BUDGET PEOPLE FAMILIAR WITH THE SITUATION SAY THE EPA IS CONSIDERING A SMALL LOWCOST OPERATION THAT WOULD INVOLVE MORE COORDINATION OF BORDER ACTIVITIES THAN ACTUAL INVESTIGATION AND ENFORCEMENT POSSIBLE MODELS INCLUDE THE AGENCY'S CHESAPEAKE BAY AND GULF OF MEXICO PROGRAM OFFICES EACH OF WHICH HAS ONLY 12 EMPLOYEES ENVIRONMENTALISTS AND MANY LOCALS HAD ENVISIONED AN OFFICE EQUAL TO THE EPA'S BIG REGIONAL OFFICES IN DALLAS AND SAN FRANCISCO WHICH NOW DIVIDE COVERAGE OF THE FOURSTATE BORDER REGION THAT'S ONE OF THE THINGS WE ARE CONCERNED ABOUT SAYS A SPOKESMAN FOR REP COLEMAN WE WANT IT TO BE A SUBSTANTIAL OFFICE 9312300138 931103 TEXAS JOURNAL HEARD IN TEXAS TANKNOLOGY'S STRATEGY PASSES TEST OF ANALYSTS LOOKING FOR FISSURES BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS TO GRASP THE UNUSUAL ROLE OF TANKNOLOGY ENVIRONMENTAL PICTURE GOING ICE FISHING AT THE CORNER GAS STATION LIKE THOSE SOULS WHO FISH THROUGH SMALL HOLES BORED IN FROZEN LAKE SURFACES TANKNOLOGY FISHES FOR LEAKS THROUGH THE SMALL ACCESS PORTALS OF UNDERGROUND STORAGE TANKS SUCH AS THOSE ENTOMBED BENEATH SERVICE STATIONS THANKS TO AN ENVIRONMENTAL PROTECTION AGENCY MANDATE REQUIRING AN ANNUAL EXAMINATION OF UNDERGROUND STORAGE TANKS INSTALLED BEFORE 1988 THIS HAS BECOME A FASTGROWING AND LUCRATIVE NICHE ESPECIALLY FOR TANKNOLOGY ONE OF THE WORLD'S LARGEST UNDERGROUND STORAGE TANK TESTERS REVENUE FOR THIS HOUSTON ENVIRONMENTALSERVICES CONCERN SURGED TO 378 MILLION IN 1992 FROM 38 MILLION IN 1989 THIRDQUARTER EARNINGS THIS YEAR WERE 12 CENTS A SHARE COMPARED WITH NINE CENTS A SHARE A YEAR EARLIER FOR THE NINE MONTHS NET INCOME NEARLY DOUBLED TO 3 MILLION OR 20 CENTS A SHARE THE STREET ESTIMATES TANKNOLOGY WILL EARN 33 CENTS A SHARE FOR THE YEAR ACCORDING TO ZACKS INVESTMENT RESEARCH BOB ACKER AUTHOR OF THE ACKER LETTER A SMALLCAP MARKET NEWSLETTER SAID HE WOULDN'T BE SURPRISED IF THE NUMBERS ARE HIGHER THIS COMPANY HAS THE POWER TO SURPRISE HE NOTES THOSE NUMBERS AS WELL AS THAT TANKNOLOGY IS BUYING BACK AS MANY AS ONE MILLION SHARES OF ITS OWN STOCK IS CASHRICH AND DEBTFREE AND IS TRADING AT LESS THAN HALF OF ITS INITIAL PUBLIC OFFERING PRICE OF 11 IN JUNE 1991 ARE STARTING TO DRAW SOME ATTENTION FROM STOCKPICKERS THIS ONE IS SO EASY THAT IT'S ALMOST BORING SAYS MR ACKER TO BE SURE TANKNOLOGY HASN'T ALWAYS LOOKED SO GOOD LAST YEAR EARNINGS TUMBLED 36 TO 37 MILLION OR 24 CENTS A SHARE WHEN THE COMPANY EXPANDED ITS FLEET OF TESTING VEHICLES TO MEET AN EXPECTED INCREASE IN DEMAND FOR TANKTESTING SERVICES THAT DIDN'T MATERIALIZE THE COMPANY SAYS A WEAK ECONOMY HAMPERED NEW ORDERS ALSO INSIDERS SHED SOME OF THEIR HOLDINGS LATE LAST YEAR AND THIS YEAR THESE FACTORS HAVE HELPED DRIVE DOWN THE SHARE PRICE ABOUT 50 FROM JANUARY 1992 BUT THE OUTLOOK APPEARS TO BE MUCH BRIGHTER FOR ONE THING LAST YEAR'S PROBLEM WITH FLAGGING DEMAND LOOKS TO BE EASING EARLIER THIS YEAR TANKNOLOGY ANNOUNCED DEALS TO INSPECT STORAGE TANKS AROUND THE COUNTRY FOR MOBIL AND AT US MILITARY BASES IN KOREA FOR A MAJOR DEFENSE DEPARTMENT ENVIRONMENTAL CONTRACTOR THE NEW CUSTOMERS JOIN SUCH CORPORATE HEAVIES AS AVIS RENT A CAR CHEVRON FEDERAL EXPRESS AND DELTA AIR LINES THAT STORE LARGE STOCKS OF FUEL UNDERGROUND TANKNOLOGY'S LEADING SERVICE VACUTECT IS REGARDED AS THE INDUSTRY'S MOST ACCURATE LEAKDETECTION SYSTEM HOMING IN ON DRIBBLES SMALLER THAN EPA GUIDELINES REQUIRE COMPETITORS CONSIST PRIMARILY OF HUNDREDS OF MOMANDPOP OUTFITS SCATTERED AROUND THE COUNTRY EMPLOYING A CHEAPER LESS ACCURATE ALTERNATIVE VACUTECT CURRENTLY ACCOUNTS FOR 68 OF TANKNOLOGY'S TOTAL REVENUE AND THANKS TO A RUSH OF TESTING AT THE END OF THE YEAR THE COMPANY'S FOURTH QUARTER HAS HISTORICALLY BEEN ITS STRONGEST THAT'S BECAUSE DEC 22 HAS BECOME THE DEADLINE FOR ANNUAL TANK TESTS AND UNDERGROUND STORAGE TANK OWNERS LIKE US TAXPAYERS TYPICALLY WAIT UNTIL THE LAST MINUTE LAST YEAR'S FINAL QUARTER FOR EXAMPLE BROUGHT TANKNOLOGY EARNINGS OF 13 CENTS A SHARE 54 OF THE YEAR'S EARNINGS TALLY THERE IS A DOWNSIDE FACING TANKNOLOGY ANNUAL TESTING OF UNDERGROUND STORAGE TANKS IS REACHING ITS ZENITH UNDER EPA MANDATES TANKS OF VARYING AGES HAVE TO MEET FEDERAL REGULATIONS BEFORE CERTAIN DATES THE LAST OF THOSE PHASEINS OCCURS THIS YEAR WHEN SOME 350000 PREVIOUSLY UNTESTED TANKS MUST BE COMBED FOR BREACHES ANNUAL TESTING WILL CONTINUE THROUGH 1998 AT WHICH POINT FEDERAL REGULATIONS REQUIRE THAT ALL TANKS BE TESTED MONTHLY A LESS RIGOROUS PROCEDURE BECAUSE VACUTECT IS COSTPROHIBITIVE ON A MONTHLY BASIS TANKNOLOGY IS PREPARING FOR THE DAY WHEN ANNUAL TANK TESTING TAPERS OFF BY ACQUIRING COMPANIES THAT SPECIALIZE IN MONTHLY TESTING LAST YEAR IT ACQUIRED USTMAN INDUSTRIES OF LAKEWOOD COLO AND ENGINEERED SYSTEMS INC OF TEMPE ARIZ USTMAN IS A LEADING PROVIDER OF MONTHLY TANK TESTS AND ANALYSTS SAY IT SHOULD PROVIDE TANKNOLOGY WITH A CONTINUOUS REVENUE STREAM ESI IN ADDITION TO PROVIDING MONTHLY TESTING SERVICES COMMANDS 50 OF THE WORLD MARKET FOR AUTOMATING BULK FUELING TERMINALS WHICH SUPPLY TANKER TRUCKS IN LATE SEPTEMBER TANKNOLOGY AGREED TO ACQUIRE CERTAIN ASSETS OF MANKOFF EQUIPMENT OF MUNDELEIN ILL WHOSE SERVICES INCLUDE CLEANING CONTAMINATED SOIL AROUND LEAKING TANKS AS WELL AS PROVIDING LEAKDETECTION SYSTEMS FOR BOTH UNDERGROUND AND ABOVEGROUND TANKS INDEED ANALYSTS SAY ONE PROMISING REASON TO OWN SHARES OF TANKNOLOGY IN THE YEARS AHEAD MIGHT STEM FROM THE ABUNDANCE OF ABOVEGROUND STORAGE TANKS THE EPA HAS YET TO DECREE TESTING REQUIREMENTS FOR THE ESTIMATED 700000 ABOVEGROUND TANKS SUCH AS THOSE THAT DOT PETROLEUM TANK FARMS BUT IT'S THE NEXT LOGICAL STEP SAYS CHARLES CHIP CARLSON PORTFOLIO MANAGER OF GREENSPRING FUND A SMALL VALUE FUND THAT HOLDS 49500 SHARES OF TANKNOLOGY TANKNOLOGY ALSO HAS AN INTEREST IN RUSTPROOFING STEEL UNDERGROUND STORAGE TANKS WHICH THE EPA DECLARED MUST BE PERFORMED ON THE ROUGHLY 15 MILLION SUCH UNDERGROUND TANKS BEFORE 1998 THUS FAR THOUGH THIS SIDE OF THE BUSINESS HASN'T PROVED A CASH COW IT CONTRIBUTED JUST 5 TO 1992 REVENUE WE MIGHT BE A LITTLE EARLY INTO THAT MARKET CONCEDES RICK BERRY TANKNOLOGY'S CHIEF FINANCIAL OFFICER BUT IT'S GOING TO BE REALLY BIG DOWN THE ROAD MERGER MANIA ROUSTED AT LEAST THREE TEXAS STOCKS LAST WEEK DALLAS'S MEDICAL CARE AMERICA WAS THE MOST PUBLICIZED MEDICAL CARE'S STOCK LED THE LIST OF GAINERS SURGING 31 TO 24875 AFTER RECEIVING AN UNSOLICITED OFFER FROM SURGICAL CARE AFFILIATES NASHVILLE TENN SURGICAL CARE PROPOSED OFFERING 135 OF ITS SHARES FOR EACH MEDICAL CARE SHARE SURGICAL CARE SHARES TRADE FOR ABOUT 20 THE DEAL THEREFORE WOULD VALUE MEDICAL CARE SHARE'S AT ROUGHLY 27 EACH MEDICAL CARE HAS REJECTED THE OFFER THOUGH SURGICAL CARE HASN'T ABANDONED THE PURSUIT PRONET A PLANO PROVIDER OF WIRELESS COMMUNICATIONS SAID IT IS IN MERGER DISCUSSIONS WITH METROCALL OF ALEXANDRIA VA WHICH ALSO PROVIDES PAGING AND WIRELESS COMMUNICATIONS SERVICES PRONET'S SHARES TRADED 36 TIMES THEIR AVERAGE DAILY VOLUME ON THE NEWS FOR THE WEEK THE COMPANY'S SHARES GAINED 50 CENTS TO CLOSE AT 1650 SHARES OF PITTENCRIEFF COMMUNICATIONS AN ABILENE PROVIDER OF MOBILE RADIO SERVICES JUMPED 225 LAST WEEK TO CLOSE AT 3675 INVESTORS BID UP THE STOCK AFTER A ROUND OF DEALMAKING SWEPT THROUGH THE MOBILE RADIO INDUSTRY RECENTLY THOUGH PITTENCRIEFF WAS NOT PART OF ANY ANNOUNCED DEALS THE COMPANY SAYS NO SUITORS HAVE APPROACHED WITH MERGER OFFERS MORNINGSTAR GROUP WAS THE BIG LOSER FOR THE WEEK DROPPING MORE THAN 19 TO 725 EARLY IN THE WEEK AN ANALYST AT CS FIRST BOSTON DOWNGRADED THE STOCK TO HOLD FROM BUY AFTER THE DALLAS MAKER OF SPECIALTY DAIRY FOODS ANNOUNCED THIRDQUARTER EARNINGS ARE EXPECTED TO DROP 50 FROM A YEAR EARLIER ADDITIONALLY FOURTHQUARTER EARNINGS ARE UNLIKELY TO REACH YEAREARLIER LEVELS MORNINGSTAR'S SHARES WERE THE SECOND MOST ACTIVE IN TEXAS TRADING 38 TIMES THEIR AVERAGE DAILY VOLUME 9312300135 931117 TEXAS JOURNAL SUDDENLY THE ARMADILLO SEEMS QUITE APPEALING BY BRIDGET O'BRIAN VICTORIA TEXAS WHICH IN RECENT YEARS HAS HOSTED THE ARMADILLO FESTIVAL THE SUPERBOWL OF CHILI AND AN ANNUAL LIVESTOCK SHOW CAN BOAST A NEW DISTINCTION IT HAS TEXAS' CHEAPEST HOTEL ROOMS AT AN AVERAGE NIGHTLY ROOM RATE OF 3058 VICTORIA HANDILY BEAT OUT ABILENE 3195 AND TEXARKANA 3289 ACCORDING TO PKF CONSULTING IN HOUSTON WHICH SURVEYS 540 HOTEL PROPERTIES IN THE STATE AT THE HIGH END DOWNTOWN DALLAS AT 9433 A NIGHT VICTORIA'S RATE ENABLED IT TO UNSEAT LAST YEAR'S CHAMPION WACO WHERE PRICES JUMPED TO 3249 A NIGHT AFTER AN UNEXPECTED SURGE IN OCCUPANCY FROM LAWENFORCEMENT PERSONNEL REPORTERS AND TOURISTS DURING THE BRANCH DAVIDIAN CULT STANDOFF EARLIER THIS YEAR LAST YEAR A WACO ROOM COST 2981 A NIGHT VICTORIA'S VISITOR'S BUREAU DOESN'T EXPECT TO MAKE HAY WITH THIS POTENTIAL MARKETING TOOL MOST PEOPLE DON'T CONSIDER RATES WHEN THEY COME HERE SAYS LUNDA CHAMRAD SECRETARY FOR VICTORIA'S TWOPERSON BUREAU WE'RE NOT WHAT YOU WOULD CALL A TOURIST DESTINATION WHILE VICTORIA DOES HAVE TWO MUSEUMS A ZOO A PARK AND SOME HISTORIC HOMES THOSE AREN'T ENOUGH TO ATTRACT BIG CONVENTIONS AND THE VISITOR'S BUREAU DOESN'T SOLICIT THEM ESPECIALLY WITH ONLY 988 HOTEL ROOMS IN TOWN MOSTLY PEOPLE JUST PASS THROUGH SAYS MS CHAMRAD 9312300132 931117 TEXAS JOURNAL HEARD IN TEXAS AS TEXAS STOCKS FLY EVER HIGHER PESSIMISTS TRY TO SPOT NEXT ICARUS BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS IN A MARKET AS OVERVALUED AS MANY SAY THIS ONE IS IT SEEMS IT WOULD BE EASY TO COMPILE A LIST OF PRICEY TEXAS STOCKS DUE FOR A DOWNDRAFT BUT NOT AS EASY AS YOU WOULD THINK THOUGH TEXAS CERTAINLY IS HOME TO NUMEROUS COMPANIES WHOSE SHARES ARE OVERVALUED BY ANY MEASURE SOME SHORT SELLERS SAY THEY'VE TAPPED A DRY WELL WHEN IT COMES TO DIGGING FOR CANDIDATES HERE HECK I DON'T EVEN HAVE A SINGLE TEXAS COMPANY ON MY LIST OF SHORTS SAYS HOUSTON HALL A PARTNER AT GHS MANAGEMENT DALLAS IN THE RECENT PAST TEXAS WAS A HAPPY HUNTING GROUND FOR SHORTS WHO BORROW STOCK AND IMMEDIATELY SELL IT EXPECTING TO PROFIT FROM A PRICE DECLINE THAT WOULD ALLOW THEM TO RETURN CHEAPER SHARES TO THE LENDER LATER ON AMONG SUCH STOCKS WERE SPAGHETTI WAREHOUSE OF DALLAS WHICH STUMBLED TO ABOUT 950 FROM A HIGH FOR THE YEAR OF MORE THAN 21 AND IRVING'S SHOWBIZ PIZZA TIME WHICH FELL TO ABOUT 1275 FROM A HIGH OF 3550 THEN OF COURSE THERE ARE THE MANY TEXAS BANK AND OIL STOCKS THAT CRUMBLED BUT SHORTS CURRENTLY SEE SURPRISINGLY FEW CANDIDATES TO TAKE THEIR PLACE WHY MAINLY BECAUSE MANY OF THE TEXAS STOCKS THAT HAVE MOVED AHEAD OF THEMSELVES ARE IN SOME OF THE HOTTEST INDUSTRIES AROUND OR ARE THE HOTTEST STOCKS IN LUKEWARM INDUSTRIES WHO'S TO SAY THEY WON'T DOUBLE OR TRIPLE AGAIN AND THEN MOVE UP FROM THERE SAYS STEVE KIBBEY VICE PRESIDENT AT CENTURION CAPITAL IN LA JOLLA CALIF BUT THAT DOESN'T MEAN THE SHORT SELLERS ARE COMING UP COMPLETELY EMPTY ONE COMPANY THAT GETS THEIR ATTENTION IS DSC COMMUNICATIONS THE PLANO MAKER OF TELECOMMUNICATIONS EQUIPMENT SHORT INTEREST THE NUMBER OF SHARES SOLD SHORT AND NOT YET REPURCHASED IN DSC STOCK ROSE BY NEARLY 12 IN OCTOBER FROM SEPTEMBER TO ABOUT 34 MILLION SHARES WILLIAM D LYONS EDITOR OF SHORT ON VALUE AN ATLANTA NEWSLETTER BELIEVES TELECOMMUNICATIONS IS THE FAD OF THE MOMENT HYPE VALUE FOR SUCH STOCKS HE SAYS HAS ADDED 20 TO 30 TO THE PRICE OF DSC CURRENTLY TRADING AT MORE THAN 60 A SHARE ROUGHLY 50 TIMES 12MONTH EARNINGS THE STOCK ALSO TRADES AT A PRICEY 26 TIMES CASH FLOW AND SIX TIMES BOOK VALUE ONCE THE STREET GLOMS ONTO ITS NEXT INDUSTRYOFTHEMOMENT MR LYONS CONCLUDES DSC COULD DROP TO AROUND 45 IN ADDITION A DILLON READ SURVEY RAISES QUESTIONS ABOUT DSC'S FUTURE ROLE IN TELECOMMUNICATIONS IN THE SURVEY 100 TELEPHONEINDUSTRY PURCHASING EXECUTIVES REGARDED DSC'S PRODUCTS AS ABOVE AVERAGE YET WHEN ASKED WHAT COMPANIES WILL EMERGE FROM THE PACK WITH THE STRONGEST PRODUCTS FOR HELPING GET VIDEO INTO HOMES VIA PHONE LINES AND WHO IN THE NEXT FEW YEARS WILL OFFER THE STRONGEST PRODUCTS BASED ON SYNCHRONOUS OPTICAL NETWORK TECHNOLOGY THE STANDARD TO WHICH THE INDUSTRY IS MOVING DSC RANKED A DISTANT SIXTH AND FIFTH RESPECTIVELY STILL DESPITE THE ATTENTION FROM SHORT SELLERS DSC'S STOCK HAS SHOWN LITTLE WEAKNESS THE STOCK HAS CLIMBED NEARLY 60 POINTS IN A LITTLE MORE THAN A YEAR AS THE COMPANY ANNOUNCED ONE MAJOR CONTRACT AFTER ANOTHER WITH JUST ABOUT EVERY BABY BELL COWEN & CO NEW YORK LAST WEEK UPGRADED DSC TO A STRONG BUY THE STOCK'S STRENGTH AND THE COMPANY'S PROSPECTS HAVE MADE SOME PEOPLE WARY OF SHORTING IT I'VE LOOKED AT DSC A COUPLE OF TIMES IT'S OBVIOUSLY PRICEY BUT IT COULD TURN OUT THAT IT'S REALLY WORTH IT BECAUSE THERE IS TREMENDOUS OPPORTUNITY FOR THEM DESPITE THE DILLON READ REPORT SAYS MICHAEL MURPHY EDITOR OF OVERPRICED STOCK SERVICE A NEWSLETTER OUT OF HALF MOON BAY CALIF WHILE I WOULDN'T BE A BUYER AT THIS LEVEL I CERTAINLY WOULDN'T SHORT IT EITHER BOMBAY CO IS ANOTHER LOCAL STOCK THAT SHORT ON VALUE'S MR LYONS PEGS FOR A POTENTIAL FALL THOUGH OTHERS ARGUE IT HAS A BRIGHT FUTURE THE SPECIALTY RETAILER OF UPSCALE FURNISHINGS TRADES AT ABOUT 40 ROUGHLY 60 TIMES 12MONTH EARNINGS MR LYONS FIGURES THAT DESPITE IMPRESSIVE GROWTHEARNINGS HAVE BEEN UP MORE THAN 30 ANNUALLY OVER THE PAST FIVE YEARS WHILE YEAROVERYEAR SAMESTORE SALES HAVE BEEN UP MORE THAN 20 A MONTH THE STREET IS ASSUMING THIS GROWTH WILL CONTINUE WITHOUT INTERRUPTION IT WON'T SAYS MR LYONS WHO ESTIMATES 30 IS A FAIRER PRICE YET THE SHORTS AREN'T RUSHING TO SELL BOMBAY'S STOCK SHORT INTEREST DECREASED BY MORE THAN 4 IN OCTOBER FROM SEPTEMBER MANY ANALYSTS BELIEVE WITH THE COMPANY EXPANDING ITS NAMESAKE STORES AND OPENING ITS ALEX & IVY CHAIN OF EARLYAMERICAN FURNISHING EARNINGS SHOULD GROW 30 A YEAR THROUGH 1998 SHORTS HAVE BEEN JUMPING ON PITTENCRIEFF COMMUNICATIONS SHORT INTEREST IN THIS PROVIDER OF WIRELESS COMMUNICATION SERVICES NEARLY QUADRUPLED TO 246500 SHARES IN OCTOBER FROM SEPTEMBER PITTENCRIEFF NOW TRADING AT ABOUT 30 WENT PUBLIC IN JUNE AT 14 SINCE MIDOCTOBER THE STOCK HAS CLIMBED 34 AND NOW TRADES AT 124 TIMES 12MONTH EARNINGS THE STOCK HAS BEEN RIDING HIGH ON TAKEOVER SPECULATION AMID A SIZZLING WIRELESS COMMUNICATIONS INDUSTRY THE COMPANY'S PARENT PITTENCRIEFF PLC WHICH TRADES ON THE LONDON STOCK EXCHANGE RECENTLY HIRED AN INVESTMENT BANKING FIRM TO EXPLORE ALL POSSIBILITIES REGARDING ITS 51 STAKE IN THE UNIT A MOVE SOME SAY MEANS THE COMPANY IS IN PLAY THE ONLY REASON TO SHORT PITTENCRIEFF COMMUNICATIONS IS AN ARBITRAGE PLAY CONTENDS CAPPY MCGARR PRESIDENT OF MCGARR PARTNERS A DALLAS HEDGE FUND HE SAYS THE PARENT COMPANY'S STAKE IN THE OFFSPRING ISN'T FULLY REFLECTED IN PITTENCRIEFF PLC'S SHARES WORTHY OF A LONG POSITION ON THE OTHER HAND THE UNIT'S STOCK PRICE HAS RISEN DRAMATICALLY AS LARGER COMPANIES LOOK TO BUILD A NATIONAL NETWORK OF WIRELESS COMMUNICATION PROVIDERS THE LONG/SHORT BET IS THAT THE PRICE FOR BOTH STOCKS WILL CONVERGE CREATING PROFIT ON BOTH SIDES OR THAT PITTENCRIEFF COMMUNICATIONS WILL BE PURCHASED AND ITS VALUE REALIZED IN THE SHARES OF ITS PARENT AFTER MONTHS OF WEAKNESS SAN ANTONIO'S DATA RACE SURGED MORE THAN 61 LAST WEEK TO 1250 AFTER THE COMPANY ANNOUNCED IT WILL OFFER A FAMILY OF WIRELESS OFFICE PRODUCTS THAT WILL UPDATE PROGRAMS INSTANTLY BETWEEN LAPTOP AND DESKTOP PCS WITHOUT USING FLOPPY DISKS OR CABLES THE COMPANY SAID THE PRODUCTS WILL BE AVAILABLE IN 1994'S FIRST QUARTER AT ITS CURRENT PRICE DATA RACE STILL TRADES FOR LESS THAN HALF OF ITS HIGH FOR THE YEAR OF 3075 FOSSIL THE DALLAS MAKER OF FASHION WATCHES JUMPED MORE THAN 20 TO 20 ON NEWS OF STRONGER EARNINGS THE COMPANY REPORTED THIRDQUARTER NET INCOME OF 37 MILLION OR 28 CENTS A SHARE UP FROM 25 MILLION OR 22 CENTS A SHARE IN THE YEAREARLIER QUARTER WHICH INCLUDED A GAIN OF 12 MILLION FROM DEFERRED TAX ASSETS FOSSIL SAID THE GROWTH REFLECTED SIGNIFICANT INCREASES IN PRIVATELABEL SALES OF ITS WATCHES AND THE EFFORTS OF ITS NEW DISTRIBUTION FACILITY IN EUROPE ELECTROCOM AUTOMATION DALLAS LED THE LIST OF ACTIVE STOCKS TRADING AT NEARLY 11 TIMES ITS AVERAGE DAILY VOLUME AS IT SHED 3375 TO CLOSE AT 950 THIS MAKER OF AUTOMATED DOCUMENTPROCESSING SYSTEMS FOR THE US POSTAL SERVICES SAID IT EXPECTS 1994 EARNINGS TO BE HURT BY CONTINUED DELAYS IN DECISION BY THE POSTAL SERVICE CONCERNING THE EXERCISE OF OPTIONS UNDER EXISTING CONTRACTS AND THE AWARDING OF CONTRACTS ON WHICH ELECTROCOM HAS BID THE COMPANY SAID 1994 EARNINGS SHOULD MATCH THIS YEAR'S LEVEL WHICH ANALYSTS ESTIMATE AT 112 A SHARE ANALYSTS HAD ESTIMATED 1994 EARNINGS AT 139 A SHARE 9312300128 931117 TEXAS JOURNAL NAFTA VOTE WHAT'S AT STAKE FOR TEXAS SOME AREAS WELCOME ACCORD SOME FEAR IT AND SOME DON'T CARE BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL JUST HOW MUCH IS AT STAKE FOR TEXAS IN TODAY'S VOTE ON THE NORTH AMERICAN FREE TRADE AGREEMENT THAT DEPENDS ON WHERE YOU ARE ALL AROUND TEXAS FROM THE HIGH PLAINS AND PANHANDLE TO THE GULF COAST BUSINESS AND COMMUNITY OFFICIALS ARE DEBATING THE BEST AND THE WORST THAT TODAY'S VOTE COULD BRING THE FOLLOWING IS A SUMMARY OF THE EFFECT NAFTA OR THE LACK OF IT WILL HAVE ON TEXAS' 10 REGIONS BEEF PRODUCERS HOPE TO CASH IN ON A YES VOTE BUT CORN GROWERS ARE WARY IT'S GOING TO BREAK US SAYS CARL KING A DIMMITT CORN GROWER AND PRESIDENT OF THE TEXAS CORN GROWERS ASSOCIATION MR KING BREAKING RANKS WITH THE NATIONAL CORN PRODUCERS BELIEVES THE AGREEMENT WILL SEND THE CORNSWEETENER INDUSTRY TO MEXICO ALONG WITH CORN BUYERS BUT MR KING IS A LONELY VOICE IN THE PANHANDLE CATTLE FEEDERS AND OTHER AGRICULTURAL INTERESTS THEY'RE ALL FOR IT THE ECONOMIC BASE OF THESE SMALL TOWNS IS SO TIED TO AGRICULTURE THAT THE EFFECT ON THOSE COMMUNITIES IS GOING TO BE REALLY SIGNIFICANT IF NAFTA IS ABLE TO INCREASE BEEF EXPORTS TO MEXICO SAYS BURT RUTHERFORD SPOKESMAN FOR THE TEXAS CATTLE FEEDERS ASSOCIATION IN AMARILLO ONE CONCERN ECONOMISTS WARN THAT THAT UNDERDEVELOPED HIGHWAY CONNECTIONS COULD CREATE A LOGJAM FOR FARMERS TRYING TO GET THEIR PRODUCTS TO MEXICO A YES VOTE MAY MEAN A NEW HIGHWAY FOR ABILENE BUT ONE BIG EMPLOYER WARNS OF LAYOFFS IF NAFTA PASSES ABILENE OFFICIALS PREDICT A NAFTA PASSAGE WOULD SPUR STATE OFFICIALS TO BUILD A NORTHSOUTH HIGHWAY AIMED AT RELIEVING CONGESTION ON I35 JUST THE PROJECT ITSELF WILL HAVE A SIGNIFICANT IMPACT IN TERMS OF CONSTRUCTION JOBS SAYS BILL EHRIE PRESIDENT OF ABILENE INDUSTRIAL FOUNDATION AN ARM OF THE LOCAL CHAMBER BUT IN WICHITA FALLS PPG INDUSTRIES INC ONE OF THE AREA'S LARGEST EMPLOYERS THINKS NAFTA WOULD GIVE AN UNFAIR ADVANTAGE TO A POWERFUL MEXICAN GLASS MAKER THE RESULT THE COMPANY SAYS IT EVENTUALLY MAY HAVE TO LAY OFF SOME OF ITS 500 WORKERS THIS REGION HAS THE MOST TO GAIN IF NAFTA PASSES AND THE MOST TO LOSE IF IT'S REJECTED NAFTA IS EXPECTED TO SPUR A BIG INCREASE IN TRAFFIC INTO AND OUT OF THE DALLASFORT WORTH AIRPORT BANKS INSURANCE COMPANIES AND THE TRAMMELL CROW FAMILY'S MARKET AND DESIGN COMPLEX ALL ARE EXPECTED TO BENEFIT AS IS RICHARDSON'S TELECOMMUNICATIONS CORRIDOR AND WITHOUT NAFTA TO THE EXTENT MEXICO DOESN'T EXPAND THAT AREA WILL LOSE SOME MAJOR OPPORTUNITIES SAYS M RAY PERRYMAN PRESIDENT OF PERRYMAN CONSULTANTS INC WACO THE AREA WILL GET A BIG BOOST IN TRUCK TRAFFIC IF TRADE INCREASES TEXARKANA WHICH SHARES ITS BORDER WITH ARKANSAS SEES ONE BIG BENEFIT FROM NAFTA INCREASED TRUCK TRAFFIC INTERSTATE SHIPPING RATES ON GOODS SHIPPED FROM THE ARKANSAS SIDE OF THE CITY ARE SUBSTANTIALLY CHEAPER THAN TEXAS RATES YOU CAN SAVE A LOT OF MONEY THAT YOU'D OTHERWISE BE SPENDING ON INTRASTATE TRUCKING SAYS ROBERT E LEE CHIEF EXECUTIVE OF THE TEXARKANA CHAMBER OF COMMERCE WE THINK WE'RE WELL POSITIONED TO BE A BIG WINNER FROM THE NAFTA AGREEMENT PEOPLE HERE HOPE A YES VOTE WILL INCREASE PAPERPRODUCTS TRADE WITH MEXICO BUT BUILDING PRODUCTS REMAIN A TOUGH SELL PAPERINDUSTRY OFFICIALS SAY THE TRADE AGREEMENT BY ULTIMATELY ELIMINATING MEXICO'S 10 IMPORT TARIFF ON PAPER PRODUCTS SHOULD BOOST THEIR EXPORTS THE TIMBER INDUSTRY ALSO HOPES TO CRACK THE MEXICAN BUILDINGPRODUCTS MARKET BUT NAFTA CAN ONLY HELP THEM SO MUCH AFTER ALL MOST MEXICAN HOMES ARE CONSTRUCTED WITH CONCRETE BLOCKS OR STONE WE'VE GOT A LONG WAY TO GO THERE SAYS TONY BENNETT SPOKESMAN FOR TEMPLEINLAND INC DIBOLL WHICH EMPLOYS ABOUT 3000 IN FORESTPRODUCTS JOBS IN EAST TEXAS THE AREA IS HOPING FOR A SURGE IN PORT TRAFFIC IF NAFTA PASSES THE PORTS OF HOUSTON CORPUS CHRISTI AND GALVESTON ALL ARE HOPING FOR A NAFTA WINDFALL THE PORT OF HOUSTON ALREADY DOES MORE THAN 1 BILLION OF TRADE WITH MEXICO AND IT EXPECTS THAT FIGURE TO INCREASE WITH OR WITHOUT NAFTA EVEN IF NAFTA WERE NOT TO PASS SAYS JIM KOLLAER PRESIDENT OF THE GREATER HOUSTON PARTNERSHIP WE THINK THE PROCESS IS SO FAR UNDER WAY IT'S PROBABLY NOT GOING TO REVERSE ITSELF THE REGION'S HIGHTECH SECTOR WILL BE A BIG BENEFICIARY FROM NAFTA IF NAFTA FAILS LOOK FOR FEWER CORPORATE RELOCATIONS GREATER AUSTIN CHAMBER OF COMMERCE OFFICIALS AREN'T WAITING TO FIND OUT WHAT HAPPENS TO NAFTA THEY'RE IN MEXICO THIS WEEK TOUTING THEIR CITY IT'S AN EFFORT TO RAISE SOME VISIBILITY AND ESTABLISH SOME STRONG BUSINESS TO BUSINESS LINKAGES SAYS SANDY DOCHEN VICE PRESIDENT GOVERNMENT RELATIONS FOR THE AUSTIN CHAMBER MORE THAN 75 OF THE TRADE BETWEEN AUSTIN AND MEXICO IS IN MANUFACTURING THE CHAMBER PREDICTS THAT THE ELECTRONIC INDUSTRY ALONE WILL REAP AN EXTRA 54 MILLION IN EXPORTS UNDER NAFTA A NO VOTE COULD SINK THE PESO AND THE BORDER ECONOMY A YES VOTE COULD HURT BORDER RETAILERS AS MEXICAN SHOPPERS NO LONGER HAVE TO TRAVEL TO THE US TO FIND AMERICAN PRODUCTS BUT MORE IMPORTANT THE VOLATILE PESO COULD PLUNGE UNDER A NO VOTE THAT WILL MAKE AMERICAN GOODS MUCH MORE EXPENSIVE FOR MEXICANS AND THAT COULD CLOBBER THE RETAIL TRADE SAYS MICHAEL R CONWELL EXECUTIVE DIRECTOR FOR INTERNATIONAL TRADE AT THE GREATER SAN ANTONIO CHAMBER OF COMMERCE MR CONWELL SAYS THAT BECAUSE OF ITS CULTURAL TIES TO MEXICO SAN ANTONIO STANDS TO GAIN UNDER NAFTA AS MEXICAN COMPANIES CONSIDER OPENING OFFICES IN TEXAS BECAUSE THE ENERGY SECTOR IS RELATIVELY UNAFFECTED BY NAFTA THE SAME CAN BE SAID FOR WEST TEXAS BUT A MIDLANDODESSA DELEGATION TO CHIHUAHUA MEXICO IN JUNE RESULTED IN A RECIPROCAL VISIT OF 45 MEXICAN BUSINESS AND GOVERNMENT LEADERS EARLIER THIS MONTH I'M NOT SURE EVEN THE ECONOMISTS ARE SMART ENOUGH TO KNOW HOW IT'S GOING TO AFFECT US RIGHT NOW SAYS STAN GARRISON INTERIM DIRECTOR OF THE MIDLAND CHAMBER OF COMMERCE IF IT PASSES I THINK THERE WILL BE A LOT OF ACTIVITY OUT IN WEST TEXAS THAT'S KIND OF LAYING DORMANT RIGHT NOW SOME FEAR A YES VOTE COULD SEND THOUSANDS OF GARMENTINDUSTRY JOBS PACKING JUST AS WITH SOUTH TEXAS EL PASO AND THE UPPER RIO GRANDE REGION ARE AT THE MERCY OF THE PESO IN ADDITION THE APPAREL INDUSTRY WHICH REPRESENTS 40 OF EL PASO'S MANUFACTURING BASE AND ABOUT 17000 JOBS IS WIDELY VIEWED AS VULNERABLE UNDER NAFTA AS COMPANIES SEEK LOWER LABOR COSTS AS A RESULT THE UNIVERSITY OF TEXASEL PASO IS WORKING WITH THE LOCAL COMMUNITY COLLEGE ON RETRAINING PROGRAMS MAINTAINING ALL THOSE JOBS IS PROBABLY GOING TO BE DIFFICULT SAYS GORDON COOK ASSISTANT DIRECTOR OF UTEP'S INSTITUTE FOR MANUFACTURING AND MATERIALS MANAGEMENT THE KEY IN THE APPAREL INDUSTRY IS GOING TO BE HIGHER PRODUCTIVITY AND HIGHER LEVELS OF TECHNOLOGY NAFTA PASSES OF THOSE 414 WOULD BE IN THE DALLASFORT WORTH AREA HERE'S A LOOK AT THE REGIONAL BREAKDOWN ALLOCATED TO ANY REGION TEXASAUSTIN AND TEXAS PERSPECTIVES INC 9312300016 931103 TEXAS JOURNAL ON THE BORDER GETS BAD NEWS ON PLANE CRASH BY BOB ORTEGA DALLAS ON THE BORDER CAFES INC FACING A CLAIM FROM A PLANE CRASH LAST MARCH THAT KILLED TWO PEOPLE AND INJURED THREE OTHERS MAY FIND LITTLE REASSURANCE FROM A PRELIMINARY REPORT BY THE NATIONAL TRANSPORTATION SAFETY BOARD BOTH PILOT WILLIAM FIORI AND HIS FATHER MICHAEL FIORI THEN PRESIDENT AND CHIEF EXECUTIVE OF THE RESTAURANT CHAIN DIED WHEN THEIR RENTED BEECH A36 DROPPED INTO A POND SHORT OF DENVER'S CENTENNIAL AIRPORT ONE OF THE THREE OTHER PASSENGERS SERIOUSLY INJURED JULIE SIMPSON WIFE OF THE COMPANY'S HUMAN RESOURCES DIRECTOR RECENTLY TOLD THE COMPANY SHE PLANS TO FILE A CLAIM FOR AN UNDISCLOSED AMOUNT THE COMPANY HAS SAID THAT IT MAY HAVE TO DEFER ITS EXPANSION PLANS FOR NEXT YEAR UNLESS IT RESOLVES THE CLAIM PROMPTLY THE NTSB REPORT SAYS THE YOUNGER MR FIORI HAD ONLY THREE HOURS OF PREVIOUS EXPERIENCE IN FLYING A BEECH A36 AND THAT HE MAY HAVE OVERESTIMATED HOW MUCH FLYING TIME HE HAD FOR THE AMOUNT OF FUEL ON BOARD IN HIS FLIGHT PLAN THE YOUNGER MR FIORI SAID HE HAD 5 1/2 HOURS OF FUEL ON BOARD FOR A PLANNED FLIGHT OF 4 1/2 HOURS BUT THE REPORT NOTES THAT MR FIORI WHO TOOK A WRITTEN TEST BEFORE RENTING THE AIRCRAFT INCORRECTLY ANSWERED A QUESTION DEALING WITH THE AIRPLANE'S RANGE AND IT NOTES THAT THE PLANE'S WEIGHT AT TAKEOFF EXCEEDED BY 107 POUNDS THE MAXIMUM CERTIFICATED GROSS WEIGHT OF 3600 POUNDS WHICH WOULD FURTHER SHORTEN THE RANGE IN FACT ACCORDING TO PERFORMANCE CHARTS AT THE ALTITUDE AND SPEED IN MR FIORI'S FLIGHT PLAN HE HAD ABOUT FOUR HOURS AND 38 MINUTES WORTH OF FUEL ON BOARD THE PLANE CRASHED AFTER FLYING FOUR HOURS AND 49 MINUTES THE REPORT NOTES THAT SHORTLY AFTER ENTERING COLORADO AIRSPACE MR FIORI APPARENTLY BECAME DISORIENTED AND WANDERED OFF HIS ROUTE THE PLANE WAS TWO MILES SHORT OF THE RUNWAY WHEN MR FIORI RADIOED IN THAT HE WAS HAVING ENGINE PROBLEMS THE PLANE CRASHED LESS THAN A MILE FROM THE RUNWAY 9312300008 931117 TEXAS JOURNAL ECONOMIC FOCUS MORE BRIDGES TO MEXICO MAYBE THERE ARE PLENTY BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL ONE LOOK AT THE ENDLESS LINES OF TRUCKS WAITING TO CROSS THE RIO GRANDE AT LAREDO AND IT'S EASY TO SEE WHY EVERYBODY IS SCREAMING FOR MORE BRIDGES TRUCKERS OFTEN WAIT AS LONG AS 12 HOURS TO CROSS THE TWO STEELANDCONCRETE BRIDGES DOWNTOWN WHICH HANDLE ROUGHLY ONETHIRD OF ALL US EXPORTS TO MEXICO IF THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT PASSES IN THE US HOUSE OF REPRESENTATIVES TODAY THE LOGJAM WILL JUST GET WORSE GOES THE CONVENTIONAL WISDOM AND SO ALL ALONG THE TEXASMEXICO BORDER LOCAL COMMUNITIES ARE PETITIONING FOR MORE CROSSING POINTS BUT DO WE REALLY NEED THEM MAYBE NOT IN A SOONTOBERELEASED BOOK THE LINKING OR THE ISOLATION OF TWO ECONOMIES A LOOK AT TRUCKING ALONG THE TEXASMEXICO BORDER AUTHORS DAVID J MOLINA AND JAMES GIERMANSKI ARGUE PERSUASIVELY THAT THERE ARE PLENTY OF STEPS THAT THE GOVERNMENTS ON BOTH SIDES OF THE BORDER CAN TAKE TO EASE CONGESTION SHORT OF UNDERTAKING MASSIVE NEW INFRASTRUCTURE PROJECTS WHAT'S MORE THEY NOTE NAFTA MAY ACTUALLY EASE THE PROBLEM NOT EXACERBATE IT NAFTA BY ITS VERY NATURE IMPROVES THE PROCESS OF MOVING GOODS AND WHEN YOU IMPROVE THE PROCESS YOU CAN HANDLE MORE WITH LESS SAYS DR GIERMANSKI A PROFESSOR OF INTERNATIONAL TRADE AT TEXAS A&M INTERNATIONAL UNIVERSITY IN LAREDO IT'S NOT JUST HOW MANY BRIDGES OR ROADS WE HAVE IT'S HOW WE USE WHAT WE HAVE WE HAVE A LOT ALREADY TWENTYONE BRIDGES TWO DAMS AND A FERRY NOW LINK TEXAS AND MEXICO AND TWO MORE BRIDGES HAVE BEEN APPROVED ONE AT PHARR WILL COST MORE THAN 90 MILLION TO COMPLETE INCLUDING HIGHWAY IMPROVEMENTS AND CUSTOMS FACILITIES MEANWHILE THE US STATE DEPARTMENT SAYS TEXAS TOWNS ARE PETITIONING FOR ABOUT 10 MORE RIGHT NOW YOU HAVE KIND OF A FREEFORALL WITH EVERYBODY BELIEVING THEIR BRIDGE IS THE MOST IMPORTANT THING SAYS HENRY MUNOZ A MEMBER OF THE TEXAS TRANSPORTATION COMMISSION WE NEED TO MANAGE THE ONES WE HAVE BETTER AMONG THE SUGGESTIONS MADE BY MESSRS GIERMANSKI AND MOLINA IN THEIR NEW BOOK SCHEDULED TO BE PUBLISHED EARLY NEXT YEAR BY THE USMEXICAN POLICY STUDIES PROGRAM AT THE UNIVERSITY OF TEXAS' LBJ SCHOOL OF PUBLIC AFFAIRS KEEP CUSTOMS STATIONS OPEN DURING OFFPEAK HOURS SO TRUCKS DON'T HAVE TO COMPETE WITH DAYTIME COMMUTER TRAFFIC ALLOW COMPANIES TO FILE CUSTOMS DOCUMENTS ELECTRONICALLY IN SOME CASES ELIMINATING THE NEED TO GO THROUGH A CUSTOMS BROKER AT THE BORDER THIS PROPOSAL IS NOW BEFORE THE US CONGRESS ALLOW US TRUCKING COMPANIES TO OPERATE IN MEXICO AND VICE VERSA AS NAFTA WOULD DO CURRENTLY A US TRUCKER TOWING WIDGETS DESTINED FOR MEXICO HAS TO DROP HIS TRAILER IN A SPECIAL COMMERCIAL ZONE ON THE US SIDE WHERE A CUSTOMS BROKER CLEARS IT FOR ENTRY INTO MEXICO A SEPARATE US TRANSFER TRUCK THEN PULLS THE LOAD ACROSS THE RIVER WHERE YET ANOTHER TRUCK THIS ONE OWNED AND DRIVEN BY A MEXICAN HOOKS UP AND TOWS IT TO ITS MEXICAN DESTINATION THE TRANSFER TRUCK RETURNS EMPTY TO THE US THUS TWO CROSSINGS MUST TAKE PLACE FOR EACH SINGLE LOAD REPEAT THE PROCESS FOR GOODS TRAVELING NORTH AND PRETTY SOON YOU HAVE A CLOGGED BRIDGE NAFTA WOULD EVENTUALLY PERMIT TRUCKERS FROM BOTH SIDES TO HAUL RIGHT THROUGH THE BORDER AND INTO THE INTERIOR THE AUTHORS ARGUE THAT NAFTA WILL EVENTUALLY FREE UP THE BORDERS BECAUSE UNDER TRUE FREE TRADE THERE ISN'T REALLY MUCH REASON FOR BORDERS AT ALL THEY POINT OUT THAT SOME EUROPEAN BORDER TOWNS HAVE WITHERED SINCE THE EUROPEAN COMMUNITY ELIMINATED MOST CUSTOMS AND IMMIGRATION CHECKS A MUCH MORE RADICAL CHANGE THAN NAFTA ENVISIONS BECAUSE TRUCKERS DON'T HANG AROUND ALL DAY WAITING TO CROSS THINK SMALL NAFTA ISN'T JUST FOR THE BIG BOYS ACCORDING TO A NEW STUDY BY TEXAS PERSPECTIVES INC THE AUSTIN ECONOMICCONSULTING FIRM PREDICTS THAT ROUGHLY A THIRD OF THE NEW TEXAS JOBS CREATED BY NAFTA WOULD BE IN BUSINESSES WITH LESS THAN 100 EMPLOYEES I THINK ONE OF THE BIG POINTS ABOUT NAFTA IS THAT IT FACILITATES SMALL BUSINESS GETTING INVOLVED IN EXPORTING SAYS JON HOCKENYOS THE FIRM'S MANAGING DIRECTOR AS IT IS HE NOTES ONLY BIG COMPANIES TYPICALLY HAVE THE RESOURCES TO OVERCOME MEXICO'S BARRIERS TO IMPORTS NAFTA LEVELS THE PLAYING FIELD HE SAYS ACCORDING TO THE STUDY 57728 NEW SMALLBUSINESS JOBS WOULD BE CREATED IN TEXAS BY THE YEAR 2003 IF NAFTA PASSES AND MEXICO CONTINUES ITS CURRENT POLICIES OF ECONOMIC LIBERALIZATION OVERALL ABOUT 182000 TEXAS JOBS ARE EXPECTED ACCORDING TO AN EARLIER STUDY DONE BY TEXAS PERSPECTIVES AND THE UNIVERSITY OF TEXAS' LBJ SCHOOL OF PUBLIC AFFAIRS A REGIONAL BREAKDOWN SUGGESTS THAT CLOSE TO 35 OF THE TOTAL NEW SMALLBUSINESS JOBS WILL BE CREATED IN THE GREATER DALLASFORT WORTH METROPLEX THE GAINS IN WEST TEXAS THE HIGH PLAINS AND NORTHWEST TEXAS WOULD BE MINIMAL THE BIGGEST SINGLE WINNER MISCELLANEOUS FURNITURE MANUFACTURERS IN THE METROPLEX WHICH STAND TO GAIN 2138 NEW JOBS SOME MAY OCCUR AT DALLAS'S SAN MIGUEL ALLENDE INC WHICH IMPORTS MOST OF ITS GOODS FROM MEXICO BUT IS NOW CONSIDERING MANUFACTURING A LINE FOR SALE SOUTH OF THE BORDER YOU HAVE NO IDEA HOW MUCH MEXICANS SPEND ON AMERICAN ITEMS SAYS VICE PRESIDENT ABRAHAM COHEN HIMSELF A NATIVE OF MEXICO 9312300166 931006 TEXAS JOURNAL NONPROFIT HOSPITALS FAIL THE CHARITY TEST BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL WHEN IT COMES TO CHARITY CARE TEXAS' NONPROFIT HOSPITALS ARE CHEAPSKATES FOR THE FIRST TIME THE TEXAS DEPARTMENT OF HEALTH HAS RELEASED RECORDS SHOWING JUST HOW MUCH MEDICAL CARE THE STATE'S NONPROFIT HOSPITALS ARE PROVIDING TO THE POOR AND THE PICTURE IT PAINTS IS A BLEAK ONE IN 1991 FIVE OF THE STATE'S MORE THAN 120 NONPROFIT HOSPITALS PROVIDED NEARLY 25 OF ALL CHARITY CARE IN THE STATE MORE THAN 60 OF THE STATE'S HOSPITALS FELL SHORT OF PROVIDING EVEN THE MINIMUM AMOUNT OF CHARITY CARE NOW RECOMMENDED BY STATE LAWMAKERS MANY OF THE STATE'S CASHSTARVED BORDER AND RURAL HOSPITALS PROVIDED A SIGNIFICANTLY HIGHER PERCENTAGE OF FREE CARE TO THE POOR THAN THEIR RICHER COUNTERPARTS IN THE STATE'S LARGER CITIES THE STATE'S CHILDREN'S HOSPITALS ALL RANKED IN THE TOP ONETHIRD IN TERMS OF PROVIDING CHARITY CARE THE ISSUE OF CHARITY CARE FOR THE POOR GAINED NATIONWIDE ATTENTION THREE YEARS AGO WHEN THENTEXAS ATTORNEY GENERAL JIM MATTOX SUED HOUSTON'S METHODIST HOSPITAL FOR SHIRKING ITS DUTIES TO THE POOR ALTHOUGH METHODIST EVENTUALLY WON THE SUIT THE STATE LEGISLATURE THIS YEAR ENACTED SWEEPING REFORMS FORCING NONPROFIT HOSPITALS WHICH BENEFIT FROM HEFTY TAX BREAKS TO PROVIDE MORE CHARITY CARE THE FACT THAT THE DATA SHOWS MANY MORE HOSPITALS THAN JUST METHODIST WERE NOT ACHIEVING WHERE THEY NEEDED TO BE DOESN'T SURPRISE ME SAYS REP GLEN MAXEY WHO SPONSORED THE LEGISLATION THIS GIVES US SOME BENCHMARK TO COMPARE AS WE GO FORWARD THE NEW LEGISLATION REQUIRES HOSPITALS TO PROVIDE CHARITY CARE EQUAL TO ABOUT 3 OF NET PATIENT REVENUE BEGINNING LAST MONTH THE FIGURE EVENTUALLY RISES TO ABOUT 4 FAILURE TO MEET THE NEW GUIDELINES COULD RESULT IN A LOSS OF THEIR NONPROFIT STATUS BECAUSE THE LATEST FIGURES ARE FOR 1991 THEY INDICATE ONLY HOW FAR HOSPITALS HAVE TO GO TO MEET THE NEW REQUIREMENTS MOREOVER STATE OFFICIALS WARN AGAINST PUTTING TOO MUCH EMPHASIS ON THE 1991 NUMBERS FOR ONE THING THE INFORMATION SUFFERS FROM REPORTING INCONSISTENCIES BY THE HOSPITALS AND THE LACK OF A STANDARD DEFINITION OF CHARITY CARE STILL THE FIGURES MOST LIKELY OVERSTATE THE LEVEL OF CHARITY CARE SINCE THEY REFLECT THE HOSPITALS' OWN DEFINITIONS RATHER THAN THE NEW PRESUMABLY MORE STRICT STATE GUIDELINES STATE HOSPITAL OFFICIALS ALSO CAUTION AGAINST READING TOO MUCH INTO THE NUMBERS THEY SAY THE AMOUNT OF CHARITY CARE CAN SIMPLY REFLECT THE NEEDS OF THE COMMUNITY OR THE NUMBER OF OTHER HOSPITALS IN THE AREA THAT ALREADY PROVIDE CHARITY I THINK JUST BECAUSE SOMEONE DOESN'T FALL A CERTAIN PLACE ON THE LIST DOESN'T MEAN THEY WEREN'T MEETING THE NEEDS OF THE COMMUNITY OR THAT THEY WEREN'T PROVIDING ADEQUATE CHARITY SAYS ANN WARD VICE PRESIDENT FOR ADVOCACY COMMUNICATIONS FOR THE TEXAS HOSPITAL ASSOCIATION OTHER HOSPITALS SAY THAT JUST BECAUSE THE NUMBERS DON'T SHOW MUCH CHARITY IT DOESN'T MEAN HOSPITALS AREN'T PROVIDING IT A SPOKESWOMAN FOR DALLASFORT WORTH MEDICAL CENTER IN GRAND PRAIRIE WHICH FALLS NEAR THE BOTTOM OF THE LIST SAYS THE WAY HER HOSPITAL HAS REPORTED CHARITY CARE IN THE PAST DOESN'T REFLECT HIGH MEDICAID LOSSES OR THE AMOUNT OF BAD DEBT THAT WOULD NOW QUALIFY AS CHARITY CARE THE NUMBERS JUST AREN'T A TRUE REFLECTION SAYS THE SPOKESWOMAN MARY GUGLIUZZA UNDER THE NEW TEXAS LAW OUR HOSPITAL WILL EASILY EXCEED THE THRESHOLD BUT FOR THOSE HOSPITALS THAT HAVE BEEN SHOULDERING A DISPROPORTIONATE SHARE OF THE STATE'S CHARITY CARE THE NEW LAW IS A BLESSING IF EVERYONE CAN TAKE A LITTLE BIT OF THE BURDEN MAYBE IT WILL HELP EVERYONE OUT SAYS KATHY WELSH DIRECTOR OF PUBLIC RELATIONS FOR DRISCOLL CHILDREN'S HOSPITAL IN CORPUS CHRISTI TEXAS' BEST AND WORST HOSPITALS FOR PROVIDING CHARITY CARE NOTE INCLUDES ONLY HOSPITALS WITH MORE THAN 10 MILLION IN GROSS PATIENT REVENUE SEE RELATED LETTER LETTER TO THE EDITOR WSJ OCT 13 1993 9310060135 YY93 MM10 9310140012 YY93 MM12 9312300163 931006 TEXAS JOURNAL NEW COUNCIL TELLS AGENCIES TO SHAPE UP STATE MUST CUT COSTS OR ALLOW FIRMS TO BID ON SERVICE CONTRACTS BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL FOR TEXAS GOVERNMENT AGENCIES IT MAY BE TIME TO JOIN THE REAL WORLD ONE OF THE FIRST SIGNS CAME FRIDAY WHEN COMPTROLLER JOHN SHARP SENT NOTICES TO 500 PRIVATE PRINTING CONCERNS SEEKING THEIR PROPOSALS FOR TAKING OVER THE AGENCY'S PRINTING OPERATION WHERE STATE EMPLOYEES WORK AROUND THE CLOCK CHURNING OUT ABOUT SIX MILLION PRINTINGS A MONTH THE NOTICE IS A PRELUDE TO A MORE FORMAL REQUEST FOR BIDS BUT MORE IMPORTANT IT IS AN INDICATION OF THE CHANGES PROMISED BY THE STATE'S COUNCIL ON COMPETITIVE GOVERNMENT THE MONTHOLD INITIATIVE IS AIMED AT SPURRING AGENCIES TO IMPROVE THEIR SERVICES AND LOWER THEIR COSTS BY FORCING THEM TO COMPETE WITH PRIVATE BUSINESS SOUND FAMILIAR IT SHOULD PRIVATIZATION PLANS HAVE COME AND GONE BEFORE RARELY MAKING A DENT A 1987 LAW FOR INSTANCE REQUIRED SOME AGENCIES TO CONSIDER PRIVATE VENDORS FOR THEIR GOODS AND SERVICES NOT A SINGLE EXISTING SERVICE HAS BEEN CONTRACTED OUT SINCE THE PROGRAM BEGAN BUT STATE OFFICIALS SAY THIS LATEST EFFORT IS DIFFERENT IT HAS THE CLOUT AND THE LEGAL AUTHORITY TO ACTUALLY GET THINGS DONE AND AS ANYBODY WHO HAS DEALT WITH THE GOVERNMENT KNOWS THERE IS PLENTY TO DO DOZENS OF AGENCIES HAVE THEIR OWN PRINT SHOPS MAIL ROOMS AND VEHICLEMAINTENANCE DEPARTMENTS INCOMPATIBLE COMPUTER SYSTEMS AT VARIOUS HEALTH AND HUMAN SERVICE AGENCIES DUPLICATE TASKS AND CAN'T SHARE INFORMATION DIFFERENT DEPARTMENTS RUN SEPARATE BUILDING AND MAINTENANCE OPERATIONS COMPLETE WITH SEPARATE WORK CREWS SUPERVISORS AND MANAGERS OUR EXPERIENCE IS THAT THERE ARE A NUMBER OF AREAS WHERE THE STATE IS RIPE FOR COMPETITION SAYS RAY BONILLA GENERAL COUNSEL FOR THE COMPTROLLER'S OFFICE FOR MANY BUSINESSES AROUND THE STATE THE PRIVATIZATION PUSH IS A POTENTIAL SOURCE OF A LOT OF NEW REVENUE NOBODY IS SURE PRECISELY HOW MUCH BUT AN INFORMAL ESTIMATE FROM JOHN POULAND EXECUTIVE DIRECTOR OF THE GENERAL SERVICES COMMISSION SUGGESTS THAT AS MUCH AS 1 BILLION OF THE STATE'S 70 BILLION BIENNIAL BUDGET COULD BE TURNED OVER TO PRIVATE HANDS WE CAN MAKE A PROFIT AND THE STATE CAN PROVIDE ITS SERVICES AT LESS COST SAYS JIM WEATHERBY PRESIDENT OF HART FORMS AND SERVICES A UNIT OF HART GRAPHICS INC AN AUSTIN PRINTING FIRM ADDS ROBERT HOWDEN TEXAS DIRECTOR OF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS WHICH REPRESENTS SMALL BUSINESS IT'S A CHANCE FOR BUSINESS TO GET A PIECE OF THE PIE WHEN IT COMES TO GOVERNMENT SPENDING TO BE SURE THE COUNCIL'S PLAN HAS ITS SHARE OF DETRACTORS SOME STATE OFFICIALS WORRY THAT OUTSIDE FIRMS WON'T BE AS RESPONSIVE AS INHOUSE DEPARTMENTS PUBLICEMPLOYEE UNIONS FEAR THE LOSS OF JOBS EVEN BUSINESS GROUPS HAVE GROUSED ABOUT THE COUNCIL'S EFFORTS TO ENCOURAGE BIDDING COMPANIES TO PROVIDE SALARIES AND BENEFITS COMPARABLE TO THOSE OFFERED BY THE STATEEVEN IF THOSE BENEFITS EXCEED THE COMPANY'S TYPICAL OFFERINGS NO EMPLOYER IS GOING TO GO IN AND CHANGE ITS HEALTHCARE PROGRAM OR ADD WORKERS' COMP ON THE CHANCE THEY'RE GOING TO GET SOME STATE BUSINESS SAYS DANE HARRIS PRESIDENT OF THE TEXAS ASSOCIATION OF BUSINESS THE COUNCIL HE ADDS IS GOING TO HAVE TO GET OUT OF THE IVORY TOWER AND INTO THE REAL WORLD WHAT'S THE DIFFERENCE THE BIGGEST QUESTION ABOUT THE COUNCIL HOWEVER IS A SIMPLE ONE WHY WILL IT BE ABLE TO SUCCEED WHERE OTHERS HAVE FAILED THE COUNCIL A PRODUCT OF THE COMPTROLLER'S 1993 PERFORMANCE REVIEW OF STATE GOVERNMENT CITES A NUMBER OF REASONS AMONG THEM IT HAS CLOUT THE COUNCIL'S MEMBERS INCLUDE THE GOVERNOR LIEUTENANT GOVERNOR SPEAKER OF THE HOUSE AND COMPTROLLER THE COUNCIL HAS THE AUTHORITY TO BYPASS USUAL PURCHASING RULES CUTTING RED TAPE AND GIVING IT GREATER FLEXIBILITY IN RESPONDING TO VENDORS' OFFERS FOR INSTANCE IT CAN IGNORE THE REQUIREMENT THAT BID REQUESTS BE WIDELY PUBLISHED AS WELL AS THE RULE THAT FORCES THE STATE TO WAIT 30 DAYS BEFORE ACTING ON BIDS THE COUNCIL CAN ORDER RELUCTANT AGENCIES TO PUT INEFFICIENT OPERATIONS UP FOR BID UNDER PREVIOUS PROGRAMS AGENCIES ONLY HAD TO CONSIDER PUTTING SERVICES UP FOR OUTSIDE BID AGENCIES WISHING TO KEEP PERFORMING THE SERVICE HAVE TO INCLUDE INDIRECT COSTS IN THEIR COMPETING BIDS GIVING OFFICIALS MORE ACCURATE COMPARISONS THAN UNDER PREVIOUS PRIVATIZATION EFFORTS FOR INSTANCE AN AGENCY WOULD HAVE TO INCLUDE IN ANY BID THE COST OF BUDGETING LEGAL OR OTHER SERVICES IT NOW RECEIVES FROM STATE AGENCIES IN ANOTHER BREAK WITH PAST CRUSADES BUSINESSES THAT WANT TO TAKE OVER GOVERNMENT OPERATIONS ARE GOING TO FACE SOME UNLIKELY COMPETITION OTHER STATE AGENCIES AN EFFICIENT MAIL ROOM CAN VIE FOR OTHER STATE POSTAL OPERATIONS OR A VEHICLEMAINTENANCE SHOP CAN TAKE IN WORK FOR ANOTHER AGENCY'S FLEET OFFICIALS AT THE DEPARTMENT OF INFORMATION RESOURCES WHICH PROVIDES PAYROLL ACCOUNTING AND OTHER COMPUTER SERVICES FOR ABOUT 100 STATE AGENCIES SAY THEY WANT TO BID FOR MORE THE AGENCY ALREADY GETS ABOUT 70 OF ITS 10 MILLION BUDGET FROM CHARGES TO OTHER AGENCIES AND OFFICIALS BELIEVE THEY COULD INCREASE THAT PERCENTAGE WITH MORE INTERAGENCY WORK WE OPERATE MORE LIKE A BUSINESS THAN ANY OTHER AGENCY IN STATE GOVERNMENT SAYS EXECUTIVE DIRECTOR ANN FUELBERG INFORMATION SERVICES IS RIPE FOR COMPETITION MS FUELBERG ESTIMATES THAT EACH OF THE APPROXIMATELY 250 STATE AGENCIES COLLEGES AND UNIVERSITIES HAVE SOME KIND OF COMPUTER SYSTEM MORE THAN 15 HAVE FULLSCALE DATAPROCESSING CENTERS WITH BUDGETS OF 5 MILLION OR MORE IT IS ONE OF THE FIRST AREAS UP FOR REVIEW BY THE COUNCIL AND LARGE COMPUTER COMPANIES SUCH AS ELECTRONIC DATA SYSTEMS AND IBM HAVE SAID THEY COULD HANDLE SOME OF THE STATE'S PROCESSING NEEDS WE WERE PUSHING PRIVATIZATION BEFORE THE AGENCIES WERE EVEN INTERESTED SAYS SANO BLOCKER REGIONAL DIRECTOR OF GOVERNMENT AFFAIRS FOR EDS IN DALLAS ONE POSSIBLE TARGET MIGHT BE THE LARGE OFTENINCOMPATIBLE COMPUTER SYSTEMS OPERATED BY THE DOZEN AGENCIES UNDER THE NEW HEALTH AND HUMAN SERVICES COMMISSION THE AGENCIES SHARE THREE COMPUTER NETWORKS STORING DATA ABOUT HEALTHCARE PROVIDERS AND ABOUT TEXANS SEEKING WELFARE FOOD STAMPS OR REHABILITATION PROGRAMS THE SYSTEMS USE DIFFERENT HARDWARE AND SOFTWARE AND BECAUSE THEY CAN'T SHARE DATA PEOPLE APPLYING FOR STATE ASSISTANCE OFTEN ARE FORCED TO FILL OUT MULTIPLE FORMS SOME DEPARTMENT OF PROTECTIVE AND REGULATORY SERVICES DATA AREN'T ON COMPUTERS AT ALL COMPLAINTS OF CHILD ABUSE ARE STORED ON INDEX CARDS A TOWER OF BABEL IS WHAT IT IS SAYS ANDY ROBINSON ASSOCIATE DIRECTOR FOR AGENCY ASSISTANCE AT THE DEPARTMENT OF INFORMATION RESOURCES WHICH RECENTLY COMPLETED A YEARLONG STUDY OF THE HEALTH AND HUMAN SERVICES' COMPUTER SYSTEMS ANOTHER FAVORITE PRIVATIZATION QUARRY THE STATE'S SCATTERED PRINTING OPERATIONS ACCORDING TO A GENERAL SERVICES COMMISSION SURVEY 23 AGENCIES HAVE LARGE WELLEQUIPPED PRINT SHOPS AND AN ADDITIONAL 22 HAVE SMALLER SHOPS IF THE COMPTROLLER'S PRINT SHOP IS ANY INDICATION THERE'S PLENTY OF ROOM FOR IMPROVING EFFICIENCY WIDELY REGARDED AS ONE OF THE BEST IN STATE GOVERNMENT THE PRINTING OPERATIONS FOR THE TAXCOLLECTION AND AUDIT AGENCY EMPLOY 25 WORKERS ON THREE SHIFTS AT THE EAST AUSTIN SHOP TWO AND FOURCOLOR PRESSES CAN TURN OUT THICK BOUND BOOKS CONTAINING MR SHARP'S MULTIVOLUME AUDITS OF STATE OPERATIONS TO THREEBYEIGHT CARDS FOR FIGURING SALES TAX IT EVEN TAKES PIECEWORK FROM OTHER AGENCIES PRINTING ANTIDRUG POSTERS FOR THE TEXAS COMMISSION ON ALCOHOL AND DRUG ABUSE BUT TIGHT STATE BUDGETS PREVENT INVESTMENTS IN NEW TECHNOLOGY WHILE MANY MACHINES SIT IDLE MUCH OF THE TIME AS MUCH AS 40 MORE PRODUCTION COULD BE WRUNG OUT OF THE SHOP IF OPERATED MORE EFFICIENTLY ACCORDING TO THE COMPTROLLER'S REQUEST FOR INFORMATION IF WE HAD THE JOBS AND THE MANPOWER WE COULD DO 150 MILLION PRINTINGS A YEAR ABOUT TWICE WHAT IT NOW HANDLES SAYS RON THOMPSON THE SHOP'S PRODUCTION MANAGER PERHAPS BUT THERE ARE PLENTY OF PEOPLE WHO THINK THAT NO MATTER HOW MANY RESOURCES THE GOVERNMENT IS GIVEN IT STILL CAN'T MEASURE UP TO THE PRIVATE SECTOR STATE SERVICES ARE GOING TO BE FORCED TO BE MORE COMPETITIVE SAYS MR POULAND OF THE GENERAL SERVICES COMMISSION IF WE CAN'T COMPETE WE'LL SUFFER THE FATE OF EVERYONE ELSE IN THE WORLD WE'LL GO OUT OF BUSINESS 9312300134 931006 TEXAS JOURNAL ECONOMIC FOCUS THE BIGGEST EMPLOYERS HINT YOU'LL BE SURPRISED BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL WHICH PUBLICLY TRADED COMPANY PROVIDES THE MOST JOBS IN TEXAS EXXON CORP SORRY GUESS AGAIN AMR CORP ANOTHER WRONG ANSWER IN FACT IF YOU GUESSED ANY COMPANY BASED IN TEXAS YOU WOULD BE WAY OFF BASE GIVE UP IT'S GENERAL MOTORS CORP OF DETROIT ACCORDING TO A NEW STUDY SCHEDULED FOR RELEASE THIS WEEK BY THE TEXAS COMPTROLLER OF PUBLIC ACCOUNTS THE BIG AUTO MAKER PROVIDES 47466 JOBS IN TEXAS OR NEARLY 1 OF ALL PRIVATESECTOR EMPLOYEES COMING IN SECOND IN THE COMPTROLLER'S LIST OF THE 100 BIGGEST EMPLOYERS IS OILFIELDSERVICES GIANT HALLIBURTON INC DALLAS WITH 41708 ROUNDING OUT THE TOP FIVE TEXAS INSTRUMENTS INC A DALLAS ELECTRONICS CONGLOMERATE AMR THE FORT WORTH PARENT OF AMERICAN AIRLINES AND RETAILER WALMART STORES INC BENTONVILLE ARK SEE ACCOMPANYING TABLE WSJ SEPT 6 1993 COMPTROLLER ECONOMISTS BEGAN THE STUDY EARLIER THIS YEAR USING DATA PROVIDED BY DUN & BRADSTREET CORP NEW YORK IN AN EFFORT TO IMPROVE THEIR ABILITY TO FORECAST TEXAS ECONOMIC TRENDS FOR YEARS THE AGENCY HAS BEEN COMPILING A TEXAS STOCKMARKET INDEX THAT TRACKS THE PERFORMANCE OF SEVERAL DOZEN TEXASBASED PUBLIC COMPANIES BY COMBINING THAT INDEX WITH OTHER BELLWETHERS OF ECONOMIC HEALTH SUCH AS UNEMPLOYMENT CLAIMS THE OFFICE CREATES AN INDEX OF LEADING ECONOMIC INDICATORS BUT FOR A VARIETY OF REASONS AGENCY ECONOMISTS HAVE GROWN LESS SATISFIED WITH THE PRESCIENCE OF THEIR TRADITIONAL STOCK INDEX FOR ONE THING THE TEXAS COMPANIES ON THE INDEX NOW NUMBERING 61 HAVE SHOWN PHENOMENAL STOCKMARKET GAINS OVER THE PAST THREE YEARS NEARLY DOUBLING SINCE AUGUST 1990 YET FOR SOME REASON JOB GAINS HAVEN'T FOLLOWED SUIT ANNUAL TEXAS EMPLOYMENT GROWTH PEAKED IN LATE 1990 AT AROUND 4 AND HAS SINCE TUMBLED TO AROUND 2 ONE POSSIBLE EXPLANATION FOR THIS DISSONANCE IS THAT TEXASBASED COMPANIES WHICH TEND TO BE SMALLER AND MORE ENTREPRENEURIAL THAN THE NATIONAL AVERAGE HAVE BECOME STOCKMARKET DARLINGS BENEFITING FROM A BULL MARKET BUT A MORE OBVIOUS EXPLANATION IS THAT COMPANIES HEADQUARTERED IN TEXAS SIMPLY DON'T REPRESENT AS MUCH OF THE JOB BASE HERE AS THEY USED TO THANKS TO TAKEOVERS FROM OUTOFSTATE FIRMS BANK FAILURES AND THE FACT THAT THE TEXAS ECONOMY IS MORE LINKED TO THE NATION'S THUS THE COMPTROLLER'S OFFICE PLANS TO SWITCH TO A NEW INDEX TRACKING THE STOCK PERFORMANCE OF THE 100 BIGGEST TEXAS EMPLOYERS NO MATTER WHERE THEY ARE BASED A TRULY LEADING INDICATOR SAYS COMPTROLLER ECONOMIST DON HOYTE HAS TO BEAR SOME RESEMBLANCE TO THE UNDERLYING ECONOMY A QUICK GLANCE AT THE LIST UNCOVERS SOME INTERESTING FACTS ABOUT THE UNDERLYING ECONOMY FOR STARTERS ONLY 32 OF THE TOP 100 COMPANIES ARE EVEN BASED IN TEXAS CALIFORNIA CLAIMS THE NO 2 SPOT WITH 11 COMPANIES THE BIGGEST BEING CALABASASBASED LOCKHEED CORP WHICH EARLIER THIS YEAR BOUGHT GENERAL DYNAMICS CORP'S FIGHTERPLANE BUSINESS IN FORT WORTH NEW YORK IS NO 3 WITH 10 LED BY CHEMICAL BANKING CORP WHICH HAS BEEN EXPANDING IN THE STATE SINCE BUYING TEXAS COMMERCE BANCSHARES IN 1987 MICHIGAN MEANWHILE BOASTS JUST FIVE COMPANIES YET IT ACCOUNTS FOR THE SECOND HIGHEST NUMBER OF JOBS THANKS TO THE DOMINANCE OF GENERAL MOTORS SPEAKING OF WHICH GM'S OPERATIONS HERE UNDERSCORE ANOTHER FUNDAMENTAL SHIFT IN THE ECONOMY FULLY TWOTHIRDS OF THE GM EMPLOYEES IN TEXAS AREN'T AUTO WORKERS AT ALL BUT COMPUTER OPERATORS AND THE LIKE AT ELECTRONIC DATA SYSTEMS THE PLANO COMPUTERSERVICES UNIT A LARGE PERCENTAGE OF THE TEXAS 100 COMPANIES ARE IN THE TELECOMMUNICATIONS OR ELECTRONICS BUSINESSES AND TRACKING WITH NATIONAL TRENDS FOUR OF THE TOP 10 COMPANIES ARE RETAILERS WHICH OFFER LOTS OF JOBS BUT PAY RELATIVELY LOW WAGES SLICED ANOTHER WAY THE TEXAS 100 LIST SHOWS THAT BIG COMPANIES ACCOUNT FOR ABOUT A THIRD OF TOTAL EMPLOYMENT IN THESE SECTORS OIL AND GAS TRANSPORTATION PUBLIC UTILITIES AND MANUFACTURING ALTHOUGH THE COMPTROLLER'S OFFICE HASN'T YET FIGURED THE PERFORMANCE OF THE NEW INDEX A QUICK CALCULATION FOR THIS NEWSPAPER BY WILSHIRE ASSOCIATES SANTA MONICA CALIF SUGGESTS IT'S UP JUST 67 SINCE THE BEGINNING OF THE YEAR COMPARED WITH 198 FOR THE OLD INDEX I THINK THAT'S MORE REALISTIC SAYS COMPTROLLER ECONOMIST TODD MORGAN WHAT'S GOING ON IS THAT THE TEXAS ECONOMY IS STILL GROWING BUT IT'S SLOWED AND IT'S SLOWED VERY NOTICEABLY THE ENGINE'S RUNNING THE BOND REVIEW BOARD PREDICTS ABOUT A MILLION NEW CARS AND TRUCKS WILL BE SOLD IN TEXAS THIS YEAR JUST OFF THE RECORD PACE OF 11 MILLION IN 1985 SALES ARE STRONGEST IN SAN ANTONIO AND DALLAS WHILE HOUSTON AND FORT WORTH SHOW RELATIVELY WEAK SALES GROWTH SAYS THE BOARD WHICH IS A PANEL OF HIGHLEVEL STATE OFFICIALS THAT MONITORS THE STATE'S DEBT SITUATION ACCORDING TO THE BOARD'S LATEST ECONOMIC REPORT EACH DOLLAR SPENT ON NEW VEHICLES INJECTS AN ADDITIONAL 170 INTO THE ECONOMY VIA RELATED SALES BUT NEW HOME SALES OFFER MORE BANG FOR THE BUCK GENERATING 275 IN EXTRA SPENDING PER DOLLAR SOURCES TEXAS COMPTROLLER OF PUBLIC ACCOUNTS DUN & BRADSTREET DATA SERVICES THE 100 BIGGEST EMPLOYERS IN THE STATE ACCOUNT FOR 176 OF ALL TEXAS PRIVATESECTOR JOBS HERE'S A BREAKDOWN BY INDUSTRY SOURCES TEXAS COMPTROLLER OF PUBLIC ACCOUNTS DUN & BRADSTREET DATA SERVICES MOST EMPLOYEES IN TEXAS THE STATES IN WHICH THE COMPANIES ARE BASED AND THE NUMBER OF TEXAS WORKERS AS OF MARCH 1 1993 DATA SERVICES TEXAS UTILITIES CO SAID IT HAD 10832 TEXAS EMPLOYEES AS OF MARCH 1 A TABLE IN LAST WEDNESDAY'S TEXAS JOURNAL USING DATA PROVIDED BY DUN & BRADSTREET CORP PLACED THE NUMBER AT 21525 SOUTHWESTERN BELL CORP SAID IT HAD 29898 TEXAS EMPLOYEES ON MARCH 1 NOT 16675 AS INDICATED IN THE TABLE 9312300131 931027 TEXAS JOURNAL THE BUSINESS OF BONDS BY TARA PARKERPOPE THE MUNICIPALBOND BUSINESS IS BIG BUSINESS IN TEXAS WHO GOT THE BIGGEST PIECE OF THE 165 BILLION IN STATE AND LOCAL BONDS ISSUED IN THE FIRST 10 MONTHS OF THIS YEAR IT DEPENDS WHERE YOU LOOK IN EL PASO COUNTY TOP HONORS WENT TO MERRILL LYNCH & CO WHICH MANAGED 33 OF THE VOLUME ACCORDING TO SECURITIES DATA CO OF NEWARK NJ IN TRAVIS COUNTY MORGAN STANLEY & CO WITH 38 CAME IN FIRST NO CLEAR WINNER EMERGED IN HARRIS COUNTY WITH GOLDMAN SACHS & CO MERRILL LYNCH AND JP MORGAN SECURITIES INC GRABBING A TOTAL OF 47 OF THE BUSINESS AND IN DALLAS COUNTY SMITH BARNEY SHEARSON INC WON WITH 23 PERCENTAGES ARE BASED ON DOLLAR VOLUME NOW THE HARDER QUESTION WHY DID VARIOUS UNDERWRITERS GET THE DEALS FOURTEEN OF THE TOP 25 SECURITIES FIRMS THAT DO BUSINESS IN TEXAS HAVE SIGNED AN AGREEMENT TO STOP MAKING POLITICAL CONTRIBUTIONS IN RESPONSE TO INDUSTRY ALLEGATIONS LINKING POLITICAL DONATIONS TO BONDUNDERWRITING BUSINESS BUT THE LINKS BETWEEN UNDERWRITERS AND POLITICIANS WEREN'T THAT SIMPLE CONSIDER GOLDMAN SACHS TOPPED THE LIST FOR THE MOST TEXAS BOND BUSINESS SO FAR THIS YEAR GOLDMAN SACHS LIMITED PARTNER DANIEL COOK III OF DALLAS SERVED AS STATE FINANCE CHAIRMAN FOR US SEN KAY BAILEY HUTCHISON A FORMER STATE TREASURER BEAR STEARNS WHICH MANAGED 11 OF THE BOND DEALS ISSUED IN DALLAS COUNTY THIS YEAR JUST HIRED FORMER DALLAS CITY MANAGER JAN HART AS ASSOCIATED DIRECTOR OF PUBLIC FINANCE TED STRAUSS HUSBAND OF FORMER DALLAS MAYOR ANNETTE STRAUSS IS ALSO AN EXECUTIVE OF THE FIRM LEHMAN BROS WHICH TOOK PART IN 17 OF THE DEALS 42 AS LEAD MANAGER EMPLOYS INVESTMENT BANKER ALISON BRISCO A TEXAS A&M UNIVERSITY REGENT AND WIDOW OF THE LATE US REP MICKEY LELAND APEX SECURITIES INC OF HOUSTON IS COOWNED BY A POLITICIAN STATE SEN RODNEY ELLIS A DEMOCRAT FROM HOUSTON ALTHOUGH MR ELLIS'S FIRM HAS NOT ACTED AS LEAD UNDERWRITER ON MANY DEALS APEX HAD A PIECE OF 25 OF ALL MUNICIPALBOND DEALS IN THE STATE IN THE FIRST 10 MONTHS THE FOLLOWING LIST SHOWS THE TOP SECURITIES FIRMS IN TEXAS BASED ON THE VOLUME OF BOND BUSINESS THEY WON AS LEAD MANAGER DURING THE FIRST 10 MONTHS OF THIS YEAR THE DOLLAR FIGURES CREDIT ONLY THE LEAD UNDERWRITER 9312300130 931006 TEXAS JOURNAL WINNERS & LOSERS SUPERCONDUCTING SUPERCOLLIDER THE US SENATE VOTED 5742 TO CONTINUE FUNDING CONSTRUCTION OF THE ATOM SMASHER NEAR WAXAHACHIE SETTING THE STAGE FOR A COMPROMISE WITH THE HOUSE WHICH EARLIER VOTED TO KILL THE PROJECT LAS COLINAS TRANSAMERICA INSURANCE GROUP IS MOVING ITS NATIONAL SUPPORT CENTER AND UP TO 1500 JOBS FROM WOODLAND HILLS CALIF TO THIS IRVING DEVELOPMENT PINEY POINT VILLAGE ENDING A 10YEAR STANDOFF WITH THIS HOUSTON SUBURB THE JAPANESE GOVERNMENT AGREED TO PAY A FEW THOUSAND DOLLARS TO HELP COVER A GARBAGECOLLECTION BILL OWED BY ITS CONSULATE ROBERT TILTON THE DALLAS TELEVANGELIST'S MULTIMILLIONDOLLAR EMPIRE SUFFERED ANOTHER SETBACK WHEN FINANCIAL DIFFICULTIES FORCED THE PREACHER TO TAKE HIS SUCCESSNLIFE PROGRAM OFF THE AIR DALLAS STARS THE HOCKEY TEAM IS BATTLING WITH ITS NEW HOME TOWN THE STARS WANT TO PUT MILLER BEER ADS IN REUNION ARENA BUT DALLAS SAYS ANHEUSERBUSCH HAS EXCLUSIVE RIGHTS TO THE PLACE MARFA COMPLAINING THAT NOISE FROM A LOCAL ICE COMPANY IS STIFLING HIS CREATIVITY SCULPTOR DONALD JUDD CANCELED AN ANNUAL PARTY THAT DRAWS AN INTERNATIONAL CROWD TO THIS TINY WEST TEXAS TOWN 9312300129 931006 TEXAS JOURNAL TRACKING TEXAS THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR ROSE TO 11029 IN THE LATEST WEEK A 310 INCREASE FROM THE YEAREARLIER PERIOD THE ANNUAL CHANGE FELL SLIGHTLY FROM A REVISED 314 IN THE PRIOR WEEK AS INITIAL UNEMPLOYMENT CLAIMS JUMPED AND REFINERY OUTPUT FELL CONSUMER CONFIDENCE ROSE TO THE HIGHEST LEVEL SINCE APRIL BUT REMAINS BELOW THE FEBRUARY PEAK 9312300123 931027 TEXAS JOURNAL ECONOMIC FOCUS WHERE'S THE JOB GROWTH THE MONEY THE CHURN BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL THE TEXAS ECONOMY A MONOLITH HARDLY THE DALLAS/FORT WORTH AREA IS CLEARLY THE ENTREPRENEURIAL LEADER OF THE STATE WITH MORE THAN A THIRD OF TEXAS' 1992 NET INCREASE IN NEW BUSINESSES COMING FROM THE METROPLEX AREA CENTRAL TEXAS GETS HIGH MARKS FOR INNOVATION GENERATING MORE PATENTS PER CAPITA THAN ANY OTHER TEXAS REGION OVER THE PAST 10 YEARS THE FOUR REGIONS THAT STARTED OFF WITH THE LEAST DEPENDENCE ON OIL AND GAS EXPLORATION CENTRAL TEXAS UPPER RIO GRANDE METROPLEX AND SOUTH TEXAS REGISTERED ANNUAL EMPLOYMENT GROWTH GREATER THAN THE STATE AVERAGE OF 15 THE SIX WITH THE GREATEST DEPENDENCE LAGGED IN NINE OUT OF 10 REGIONS THE AVERAGE ANNUAL EMPLOYMENT GROWTH RATES IN SERVICES EXCEEDED THE STATEWIDE AVERAGE FOR ALL INDUSTRIES THE ONE EXCEPTION WEST TEXAS WITH SERVICESECTOR EMPLOYMENT GROWTH OF 14 THESE ARE SOME OF THE FACTS CONTAINED IN A NEW REPORT FROM THE TEXAS COMPTROLLER'S OFFICE THE REPORT APTLY TITLED TEXAS REGIONAL OUTLOOK CONFIRMS STATISTICALLY WHAT IS INTUITIVELY OBVIOUS SOME REGIONS OF TEXAS ARE MORE EQUAL THAN OTHERS SOME OF THE REPORT'S MOST PROVOCATIVE COMMENTARY FOCUSES ON WHAT ECONOMISTS CALL CHURN OR THE ABILITY OF AN ECONOMY TO CREATE NEW HIGHERVALUE INDUSTRIES TO REPLACE OUTDATED OR FAILED ONES BY THIS STANDARD THE METROPLEX AND CENTRAL TEXAS HAVE CHURN TO BURN WHILE WEST TEXAS THE HIGH PLAINS AND THE BORDER REGIONS APPEAR LOCKED INTO A MORE OSSIFIED INDUSTRIAL STRUCTURE THE DIFFERENCES BECOME PARTICULARLY GLARING WHEN COMPARING NET NEW BUSINESS CREATION ACROSS THE STATE LAST YEAR 180327 NEW BUSINESSES OPENED THEIR DOORS IN TEXAS WHILE 116681 CLOSED LEAVING A NET GAIN OF 63646 ACCORDING TO THE COMPTROLLER'S OFFICE MORE THAN A THIRD OF THESE NET NEW BUSINESSES 22895 CAME FROM THE METROPLEX REGION ALONE MORE STRIKINGLY THE FIGURE TRANSLATES INTO 51 NET NEW BUSINESSES PER 1000 RESIDENTS MAKING THE METROPLEX THE ONLY REGION THAT BEATS THE STATE AVERAGE OF 36 PER THOUSAND COMING IN SECOND WAS THE GULF COAST WHICH CREATED 14003 NET BUSINESSES OR 35 PER 1000 NEXT SOUTH TEXAS WITH 8586 BUSINESSES OR 26 PER 1000 AND CENTRAL TEXAS WITH 6356 BUSINESSES OR 36 PER 1000 SO WHAT MAKES THE METROPLEX SO FERTILE ONE EXPLANATION OFFERED BY THE COMPTROLLER'S OFFICE IS THE APPARENTLY GREATER AVAILABILITY OF CAPITAL TO FINANCE STARTUPS ALTHOUGH AN EXACT LINK ISN'T ESTABLISHED AND THE DATA ARE FUZZY DUE TO STATEWIDE BRANCHING THE REPORT SHOWS METROPLEX BANKS HAVE MORE THAN 84 BILLION IN ASSETS DWARFING THE GULF COAST'S 30 BILLION AND THE 22 BILLION IN SOUTH TEXAS BANKS IN ADDITION THE METROPLEX EMERGES AS BY FAR THE BIGGEST CENTER OF TECHNOLOGY JOBS SOMETHING THAT MAY TAKE AUSTIN BOOSTERS BY SURPRISE WITH EMPLOYMENT OF 167322 THE METROPLEX SUPPORTS NEARLY 54 OF THE STATE'S TOTAL IN THAT SECTOR FOLLOWED BY CENTRAL TEXAS WITH 51728 JOBS OR 17 OF THE TOTAL THE GULF COAST COMES IN WITH 45108 JOBS OR A 14 SHARE CENTRAL TEXAS ALSO COMES OUT ON TOP IN PERCAPITA GOVERNMENT EXPENDITURES REAPING 7748 PER PERSON IN STATE AND FEDERAL SPENDING LAST YEAR THANKS TO TWO MAJOR AIR FORCE BASES NORTHWEST TEXAS RANKS SECOND WITH 6268 PER PERSON WHILE THE GULF COAST COMES IN LAST AT 4346 WELL UNDER THE TEXAS AVERAGE OF 5404 9312300120 931006 TEXAS JOURNAL LETTER TO THE EDITOR THE DIFFICULTIES OF FORECASTING NAFTA'S IMPACT ON TEXAS NAFTA'S EFFECT ON TEXAS IT DEPENDS WHOM YOU ASK SEPT 29 GO FAR BEYOND DECIDING WHETHER TO INCLUDE SERVICES AND DETERMINING THE MAGNITUDE OF THE JOBS MULTIPLIER HOW DO YOU MODEL THE IMPACT OF MEXICO ADOPTING A UNIFORM COMMERCIAL CODE WHAT IS THE EFFECT ON TRADE WHEN THE ATTITUDE OF BORDER OFFICIALS CHANGES FROM INDIFFERENCE AND IN SOME CASES OUTRIGHT HOSTILITY TO ACTIVELY PROMOTING COMMERCE WHAT WILL BE THE IMPACT ON TRADE OF BILLIONS OF DOLLARS IN NEW INFRASTRUCTURE INVESTMENT IN TODAY'S WORLD TRADE INCREASINGLY FOLLOWS INVESTMENT UNDER NAFTA EXPANDED INVESTMENT BY TEXANS IN MEXICO WILL DO MORE TO GENERATE NEW TRADING OPPORTUNITIES THAN SIMPLY REDUCING ALREADY LOW TARIFF BARRIERS IF I HAD TO CHOOSE BETWEEN THE CAUTIOUS CONVENTIONAL METHODOLOGY OF THE STOLPWEINTRAUBHOCKENYOS/TEXAS COMPTROLLER MODELS AND THE RATHER MORE BOISTEROUS APPROACH OF DR PERRYMAN BLACK BOX AND ALL I'D OPT FOR THE LATTER NAFTA REPRESENTS THE KIND OF SEA CHANGE IN PUBLIC POLICY THAT SHIFTS THE PARAMETERS OF THE MODELS AND LEAVES ECONOMETRICIANS WITH EGG ON THEIR FACES 9312300118 931027 TEXAS JOURNAL WINNERS & LOSERS CALL SCREENERS SOUTHWESTERN BELL REACHED A PRELIMINARY AGREEMENT WITH STATE REGULATORS AND CONSUMER REPRESENTATIVES TO LAUNCH A CALLER ID SERVICE LONE STAR JOCKEY CLUB THE INVESTMENT GROUP SETTLED A DISPUTE WITH BACKERS OF A HORSERACING TRACK IMPROVING ITS OWN CHANCES OF FINALLY BUILDING A 105 MILLION TRACK IN GRAND PRAIRIE CADDO LAKE THE EAST TEXAS LAKE WAS DESIGNATED A WETLANDS OF INTERNATIONAL IMPORTANCE LIKELY QUASHING A FEDERAL PLAN TO TURN IT INTO A BARGE CANAL DALLAS ATLANTIC RICHFIELD WILL ELIMINATE ITS ARCO OIL & GAS HEADQUARTERS HERE CUTTING HUNDREDS OF LOCAL JOBS AND LEAVING ANOTHER GAPING HOLE IN DOWNTOWN OFFICE SPACE WILLIAMSON COUNTY TWO COUNTY COMMISSIONERS WILL OPPOSE PROPERTYTAX ABATEMENTS TO COMPANIES THAT GIVE HEALTHCARE BENEFITS TO EMPLOYEES' SAMESEX DOMESTIC PARTNERS ROSS PEROT INTERCERAMIC A MEXICAN CONGLOMERATE DECIDED AGAINST LOCATING A NEW TILE FACTORY AT MR PEROT'S ALLIANCE AIRPORT PROJECT THE REASON HIS OPPOSITION TO NAFTA SEE RELATED LETTERS TEXAS JOURNAL LETTERS TO THE EDITOR TALES OF RELOCATION VOLUME TWO WSJ NOV 17 1993 9311170060 YY93 MM12 9312300117 931027 TEXAS JOURNAL TRACKING TEXAS THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR FELL SLIGHTLY TO 11037 IN THE LATEST WEEK FROM 11042 THE WEEK BEFORE AMONG THE COMPONENTS INITIAL UNEMPLOYMENT CLAIMS ROSE AND TEXAS REFINERY OUTPUT STAYED VIRTUALLY FLAT COMPARED TO THE SAME WEEK A YEAR AGO THE INDEX ROSE 291 THAT'S DOWN FROM 298 THE PRIOR WEEK AND FAR OFF THE NEARLY 4 GROWTH RATE IN THE SPRING 9312300116 931006 TEXAS JOURNAL IN THE PINE INDUSTRY THE BANE OF NORTHWEST IS A BOON FOR TEXAS BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL THE SPOTTED OWL BLAMED FOR WRECKING THE PACIFIC NORTHWEST'S TIMBER INDUSTRY IS PROVING TO BE A BLESSING FOR TEXAS EAST TEXAS TIMBER PRODUCERS AND LUMBER COMPANIES SAY INDUSTRY LIMITATIONS THAT ARE INTENDED TO PRESERVE LANDS IN THE NORTHWEST FOR THE SPOTTED OWL HAVE BEGUN SHIFTING SALES AWAY FROM THAT REGION THIS IS CREATING A WINDFALL FOR PRODUCERS OF SOUTHERN PINE IN TEXAS NOT ONLY HAVE CALIFORNIA AND OREGON COMPANIES BEGUN ORDERING LUMBER FROM TEXAS SOME OF THEM HAVE SHUT DOWN THEIR STRUGGLING WEST COAST MILLS TO DO BUSINESS FULL TIME HERE BUT WHILE THE OWL CONTROVERSY HAS HELPED TEXAS TIMBER AND LUMBER COMPANIES BOOST EARNINGS AND GAIN MARKET SHARE THE BOON ALSO HAS PROMPTED A WHOLE NEW SET OF CONCERNS TEXAS FORESTS ARE FALLING AT A FASTER RATE THAN THEY ARE BEING PLANTED AND ANOTHER ENDANGERED BIRD THE REDCOCKADED WOODPECKER HAS BEEN MAKING NOISES OF ITS OWN WE'RE IN A SITUATION WITH OUR TIMBER RESOURCES WHERE WE'RE ALREADY CUTTING ABOUT AS MUCH AS WE'RE GROWING AND IN SOME CASES WE'RE CUTTING MORE THAN WE'RE GROWING SAYS ROGER LORD STAFF FORESTER FOR THE TEXAS FOREST SERVICE IT'S NOT VERY LIKELY THE SOUTH CAN MAKE UP FOR THE DROP IN THE PACIFIC NORTHWEST NEVERTHELESS TEXAS TIMBER AND LUMBER COMPANIES ARE ENJOYING THE WINDFALL WHILE THEY CAN TEMPLEINLAND FOREST PRODUCTS CORP A UNIT OF TEMPLEINLAND INC DIBOLL SAW SECONDQUARTER EARNINGS FOR ITS BUILDING PRODUCTS GROUP SOAR 90 TO 227 MILLION TEMPLEINLAND SAYS LOW INTEREST RATES AND A GENERAL INCREASE IN BUILDING ACTIVITY ALSO PLAYED A ROLE IN THE SURGE CALTEX LUMBER CO NACOGDOCHES WHICH IS OWNED BY A CALIFORNIA FAMILY SAID IT IS SHUTTING DOWN TWO SAWMILLS IN NORTHERN CALIFORNIA BECAUSE OF A LACK OF TIMBER WHILE ITS NACOGDOCHES OPERATION IS SEEING RECORD SALES WE ARE ALL IN THE INDUSTRY STILL SCRATCHING OUR HEADS ON HOW FAST OUR DEMAND WILL INCREASE SAYS TONY BENNETT A TEMPLEINLAND SPOKESMAN WE'RE NOT SURE WHAT EFFECT IT WILL HAVE ON LONGTERM TIMBER SUPPLIES ACROSS THE SOUTH ALTHOUGH A STATEBYSTATE BREAKDOWN ISN'T AVAILABLE THE LOUISIANABASED SOUTHERN FOREST PRODUCTS ASSOCIATION REPORTS PRODUCTION OF SOUTHERN PINE HAS JUMPED 41 IN THE LAST FIVE YEARS SOUTHERN PINE HAS GAINED 31 MARKET SHARE UP FROM 27 A FEW YEARS AGO EVEN MORE SIGNIFICANT TO THE INDUSTRY IS THE RISE IN LUMBER PRICES IN SEPTEMBER FOR EXAMPLE PRICES WERE AT 379 PER 1000 BOARD FEET 44 HIGHER THAN THE SAME PERIOD LAST YEAR BUT SOME INDUSTRY WATCHERS ARE WORRIED THAT HARD TIMES IN THE NORTHWEST WILL CREATE A FLOOD OF NEW TIMBER AND LUMBER COMPANIES IN TEXAS THE LURE IS OBVIOUS 118 MILLION ACRES OF TIMBERLAND AND ONLY 6 IS PUBLICLY OWNEDCOMPARED WITH MORE THAN 50 IN THE NORTHWEST AND TEXAS TIMBER ALREADY IS BEING CUT FASTER THAN IT IS PLANTED A 1992 TEXAS FOREST SERVICE SURVEY FOUND THE STATE IS CUTTING 3 MORE PINE THAN IT IS GROWING IT'S NOT ENOUGH TO CREATE A LARGE AMOUNT OF CONCERN BUT IT INDICATES THAT WE ARE IN A SITUATION WHERE ADDITIONAL MILL CAPACITY WILL START TO BECOME A PROBLEM SAYS THE FOREST SERVICE'S MR LORD IN ADDITION A LAWSUIT RELATING TO TEXAS FOREST SERVICE HARVESTING METHODS NEAR THE HABITAT OF THE REDCOCKADED WOODPECKER IS SCHEDULED FOR A HEARING THIS MONTH ALTHOUGH THE SUIT NOW AFFECTS ONLY PUBLIC LANDS PRIVATE INDUSTRY IS WATCHING CLOSELY BECAUSE ANY RULING COULD EVENTUALLY AFFECT PRIVATE LANDS ENVIRONMENTALISTS DISMISS THE CONCERN AS A POLITICAL PLOY BUT TEMPLEINLAND ALREADY HAS HALTED PRODUCTION ON 7000 ACRES OF TIMBER BECAUSE OF THE ENDANGERED BIRD THERE WILL LIKELY BE MORE SAYS TEMPLEINLAND'S MR BENNETT 9312300115 931013 TEXAS JOURNAL A 1950S FOSSIL ANYONE STARTING TO FEEL OLD YET BY JEFF D OPDYKE WHAT DO YOU GET WHEN YOU CROSS TIMEX WITH THE NICK AT NITE CABLE CHANNEL A WATCH THAT CAN TAKE A LICKING AND KEEP ON SMIRKING WHICH IS TO SAY YOU GET FOSSIL INC THE DALLAS MAKER OF RETRO1950S WATCHES THRIVING IN PART ON AMERICANS' APPETITE FOR COLLECTIBLES FOSSIL EXPECTS SALES TO RISE 22 THIS YEAR TO 90 MILLION NOW THE COMPANY HAS BIG NEWS FOR ITS FANS IT SOON WILL START THE OFFICIAL FOSSIL COLLECTORS CLUB MEMBERSHIP WILL INCLUDE QUARTERLY NEWSLETTERS AND A SPECIALEDITION FOSSIL WATCH FOR MEMBERS ONLY ALL OF WHICH SHOULD PLEASE THE GROWING NUMBERS OF FOSSIL FANS WHO SQUIRREL AWAY NOT ONLY THE WATCHES BUT ALSO THE TINS THEY COME IN CREATIONS INCLUDE THE SUPERMAN/CLARK KENT/LOIS LANE WATCH ENCASED IN A REPLICA OF THE GLOBE ATOP THE DAILY PLANET BUILDING COMING SOON A BORIS AND NATASHA WATCH PACKAGED IN A BOMB COLLECTORS HAVE A BUNDLE OF BUYING TO DO TO KEEP PACE WITH THEIR PASTIME FOSSIL NOW OFFERS ABOUT 500 WATCH STYLES AND IT INTRODUCES AND DISCONTINUES ROUGHLY 100 STYLES A YEAR YOU KNOW WHAT'S REALLY SCARY SAYS PETER BENANTI THE COMPANY'S VICE PRESIDENT MARKETING IS THE NUMBER OF ROY ROGERS COLLECTORS OUT THERE 9312300112 931013 TEXAS JOURNAL WINNERS & LOSERS BILL HAYDEN COMPUADD COMPUTER'S FOUNDER STRUCK A DEAL WITH CREDITORS THAT WILL ALLOW HIM TO REMAIN AS CEO AND TO RETAIN A 20 STAKE WHEN THE AUSTIN PC MAKER EMERGES FROM BANKRUPTCY DALLASFORT WORTH COUCH POTATOES INDEPENDENT KTXA/CHANNEL 21 WILL BEGIN AIRING THE CONTROVERSIAL NYPD BLUE AFTER ABC AFFILIATE WFAA/CHANNEL 8 NIXED THE SHOW ENVIRONMENTALISTS OWNERS OF THE GIANT KING RANCH JOINED THOSE WHO OPPOSE DREDGING OF THE INTRACOASTAL WATERWAY SOUTH OF CORPUS CHRISTI TEXAS INSURERS GOV RICHARDS NAMED ROBERT HUNTER A VOCAL CRITIC OF BIG INSURANCE COMPANIES AS THE STATE'S NEW 150000AYEAR INSURANCE COMMISSIONER HOUSTON SHIP CHANNEL SHIP TRAFFIC WAS SLOWED BY THE FATAL EXPLOSION OF A BIG CHEMICAL TANKER OFF THE GALVESTON COAST SALVAGE CREWS ARE STILL CLEANING UP THE WRECKAGE MENTALLY HANDICAPPED TEXANS A REPORT BY THE ASSOCIATION FOR RETARDED CITIZENS RANKS TEXAS LAST IN PROVIDING JOBS FOR MENTALLY RETARDED RESIDENTS 9312300110 931006 TEXAS JOURNAL LESSON 1 HOW DO YOU SAY NAFTA' IN SPANISH BY ROBERT TOMSHO TEXANS AREN'T WAITING FOR PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT TO LEARN THE LANGUAGE OF BUSINESS SOUTH OF THE BORDER BERLITZ INTERNATIONAL INC PRINCETON NJ SAYS IT SAW A 71 INCREASE IN ENROLLMENT FOR SPANISH CLASSES IN ITS TEXAS DIVISION BETWEEN 1989 AND 1992 COMPARED WITH A 53 INCREASE NATIONWIDE MEANWHILE ALTHOUGH THE LANGUAGESERVICES CONCERN WON'T DISCLOSE ACTUAL NUMBERS IT ESTIMATES THAT 58 OF ITS TEXAS STUDENTS STUDIED SPANISH IN 1992 COMPARED WITH 35 NATIONWIDE OUR CLIENTS TELL US ANTICIPATION OF NAFTA RATIFICATION IS WHAT'S GETTING THEM TO SIGN UP SAYS PATRICA SZE BERLITZ'S MARKETING DIRECTOR THE COMPANY ALSO HAS BEEFED UP TEXAS MARKETING EFFORTS FOR ITS TRANSLATION DIVISION WHICH AMONG OTHER THINGS TRANSLATES CLIENTS' TRAINING MANUALS AND ADVERTISING FROM ENGLISH TO SPANISH BUT TO KEEP UP WITH SUBTLE CHANGES IN THE LANGUAGE AND AVOID EMBARRASSING MISTRANSLATIONS OF REGIONAL IDIOMS MOST OF THAT WORK ISN'T BEING DONE IN TEXAS WE HAVE A LARGE OFFICE IN MEXICO CITY THAT IS DOING GREAT SAYS LYLE BEASLEY A TRANSLATIONDIVISION EXECUTIVE 9312300109 931006 TEXAS JOURNAL HEARD IN TEXAS NATURAL GAS TAKES ON A NEW AIR FOR TRANSPORTERS AND MARKETERS BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL NATURAL GAS MAY STINK BUT IN THE PAST YEAR THE FUEL HAS BEEN SWEETER THAN PERFUME FOR THOSE COMPANIES THAT GATHER TRANSPORT AND MARKET NATURAL GAS STOCK PRICES FOR A NUMBER OF TEXAS COMPANIES IN THIS INDUSTRY HAVE SCORCHED THEIR WAY UP 50 OR MORE IN THE PAST YEAR BUT SOME ANALYSTS THINK THERE IS PLENTY OF FIRE LEFT WITH THE ENVIRONMENTALLY CORRECT CLINTON ADMINISTRATION HAWKING THE CLEANERBURNING FUEL AS THE ANTIDOTE TO OIL'S PENCHANT FOR POLLUTION THE COMPANIES THESE ANALYSTS SAY BEST STAND TO PROSPER INCLUDE DALLASBASED USXDELHI GROUP TEJAS GAS AND AMERICAN OIL & GAS IN HOUSTON AND WESTERN GAS RESOURCES A DENVER COMPANY WITH STRONG LINKS TO TEXAS THERE ARE LONGTERM VALUES IN A NUMBER OF THESE STOCKS SAYS JOHN E OLSON A MERRILL LYNCH ANALYST IN HOUSTON AND DESPITE SIZABLE INCREASES IN THEIR SHARE PRICES RECENTLOUBLE IN THE NEXT TWO YEARS SAYS STUART J WAGNER A PETRIE PARKMAN & CO ANALYST IN DENVER THE REASON DEMAND FOR NATURAL GAS IS EXPECTED TO GROW STEADILY THROUGH THE LATTER HALF OF THE DECADE WHICH SHOULD BOLSTER PRICES THE SINGLE BIGGEST BENEFIT OF GRADUALLY INCREASING GAS PRICES IS THAT IT GENERATES MORE DRILLING WHICH INCREASES DEMAND FOR OUR GATHERING SERVICES SAYS DAVID M KIHNEMAN DELHI'S PRESIDENT FOR THE MOST PART THESE COMPANIES OWN A SERIES OF INTRASTATE PIPELINES THAT COLLECT NATURAL GAS AT THE WELLHEAD FOR DELIVERY TO SUCH CUSTOMERS AS ELECTRIC UTILITIES AND LARGE INDUSTRIAL USERS MOST ALSO OPERATE PROCESSING PLANTS THAT STRIP FROM THE GAS STREAM HIGHVALUE NATURALGAS LIQUIDS SUCH AS ETHANE BUTANE AND PROPANE BECAUSE COMPANIES SUCH AS DELHI AREN'T ENGAGED IN EXPLORATION AND DRILLING AND THUS AREN'T EXPOSED TO THE INHERENT RISKS THIS IS THE LOWRISK WAY TO PLAY THE NATURALGAS STORY MR WAGNER SAYS INDUSTRY OBSERVERS POINT OUT THAT DESPITE THE TORRID YEAR THESE SHARES RECENTLY HAD THERE IS STILL VALUE TO BE FOUND TRUE THE RUNUP HAS EXHAUSTED EARNINGS MULTIPLE EXPANSION WESTERN AND TEJAS GAS FOR EXAMPLE ARE TRADING AT A PRICEY 29 AND 42 TIMES RESPECTIVE EARNINGS BUT THERE IS FUNDAMENTAL VALUE BECAUSE NOW YOU'RE DEALING WITH GROWTH RATES THAT WILL DRIVE PRICE EXPANSION SAYS RICHARD GROSS A SHEARSON LEHMAN BROTHERS ANALYST IN NEW YORK AND THE GROWTH RATE FOR THIS INDUSTRY IS EASILY NORTH OF 20 A YEAR FUELING THAT PROJECTED GROWTH IS THE ACQUISITION ACTIVITY THESE COMPANIES HAVE UNDERTAKEN WHICH IS MANY YEARS FROM OVER SAYS M CAROL COALE AN ANALYST WITH HOWARD WEIL LABOUISSE FRIEDRICHS IN HOUSTON BECAUSE OF REGULATORY CHANGES MS COALE SAYS PIPELINE COMPANIES AND THE MAJOR OIL PRODUCERS NOW HAVE AN INCENTIVE TO GET OUT OF THE MERCHANT SIDE OF THE BUSINESS AND THEIR ASSETS ARE BEING SNAPPED UP BY THE COMPANIES SPECIALIZING IN GATHERING TRANSPORTING AND MARKETING AND THESE COMPANIES ARE PAYING FAR LESS THAN IT WOULD COST TO BUILD THOSE ASSETS TEJAS GAS FOR EXAMPLE WHICH HAS EXPANDED ITS PIPELINE MILEAGE NEARLY 50 SINCE 1988 RECENTLY COMPLETED A PURCHASE OF EXXON'S TEXAS AND LOUISIANA INTRASTATE PIPELINES A SHEARSON LEHMAN REPORT ESTIMATES TEJAS' PURCHASE WILL VAULT EARNINGS POWER TO A NEW PLATEAU AND CREATE A FOUNDATION FOR FIVEYEAR EARNINGS GROWTH OF 25 A YEAR WESTERN GAS AND DELHI LIKEWISE HAVE BEEN ACTIVELY ADDING PIPELINES RESERVES AND PROCESSING PLANTS TO THEIR STABLES EARNINGS FOR BOTH COMPANIES ANALYSTS SUGGEST SHOULD GROW MORE THAN 20 ANNUALLY BUT BECAUSE THIS INDUSTRY IS GROWING BY ACQUISITION THE EARNINGS ALTHOUGH STRONG HAVE BEEN SUPPRESSED AS THE COMPANIES REINVEST IN THEIR BUSINESS DELHI FOR INSTANCE HAS BUDGETED 45 MILLION IN 1993 FOR CAPITAL EXPENDITURES NEARLY DOUBLE LAST YEAR'S LEVEL ONCE THE ACQUISITIONS SLOW HOWEVER YOU COULD SEE A REAL EARNINGS BOOM MR WAGNER CONTENDS TO BE SURE THESE COMPANIES HAVEN'T BEEN OVERLOOKED BY WALL STREET WITH TALK OF NATURALGASPOWERED CARS AND THE PUSH AWAY FROM RELIANCE ON HEAVYAND DIRTYFUEL OILS BUYERS HAVE BID THESE STOCKS UP SUBSTANTIALLY ALTHOUGH CINCINNATI'S PENN CENTRAL CORP HAS SAID IT SOON WILL SELL 198 MILLION TEJAS SHARES YOU'VE ALMOST GOT TO MAKE AN APPOINTMENT TO BUY TEJAS GAS THE SHARES OF WHICH HAVE MORE THAN DOUBLED IN PRICE FROM A YEAR AGO ADJUSTED FOR A THREEFORTWO SPLIT IN MARCH SAYS MS COALE WESTERN HAS ROCKETED MORE THAN 50 AND DELHI HAS CLIMBED BY MORE THAN 40 SINCE GOING PUBLIC AT 16 A SHARE IN SEPTEMBER 1992 AMERICAN OIL & GAS IS DOWN 30 ON EARNINGS WEAKENED BY IRREGULAR WEATHER AND A MARGIN SQUEEZE THAT RESULTS WHEN THE PRICES OF NATURALGAS LIQUIDS SLIP WHILE GAS PRICES STRENGTHEN AS IS THE CASE NOW AT CURRENT PRICES IT'S PREFERABLE FOR GATHERERS AND MARKETERS TO TAKE GAS AT THE WELLHEAD AND SHARE WITH THE PRODUCERS THE PROFITS FROM BOTH THE GAS AND THE LIQUIDS PROCESSED OUT AMERICAN HOWEVER KEEPS 100 OF THE LIQUIDS PROFITS AND MUST REPLACE THE GAS LOST TO PROCESSING AS SUCH AMERICAN CAN BE CAUGHT HAVING TO BUY REPLACEMENT GAS AT HIGHER PRICES THUS CRIMPING EARNINGS STILL MR OLSON NOTES IN A REPORT THIS IS AN UNDERVALUED COMPANY WITH A VERY PROFITABLE AND VERY LIQUID BALANCE SHEET HE SEES AMERICAN NOW TRADING NEAR 1150 FETCHING 16 TO 17 WITHIN THE YEAR ULTIMATELY THE PROFITABILITY OF THESE GAS GATHERERS AND MARKETERS RESTS ON DEMAND FOR NATURAL GAS AND CURRENT INDICATIONS ARE DEMAND SHOULD BE STRONG FOR SOME TIME THE AMERICAN GAS ASSOCIATION PROJECTS GAS NEEDS WILL GROW AS MUCH AS 25 ANNUALLY OVER THE NEXT TWO DECADES A HEFTY VOLUME GIVEN THAT LAST YEAR'S GAS CONSUMPTION TOPPED 20 TRILLION CUBIC FEET ABOUT 10 SHY OF THE COUNTRY'S RECORD DEMAND OF 22 TRILLION CUBIC FEET IN 1972 THERE ARE TWO OTHER INDICATORS OF FUTURE DEMAND HOUSTONBASED BAKER HUGHES INC WHICH TRACKS DRILLING ACTIVITY REPORTS 421 GAS RIGS OPERATIONAL IN MIDSEPTEMBER UP 21 FROM A YEAR AGO AND ON THE NEW YORK MERCANTILE EXCHANGE NOWHERE DO NATURALGAS SPOT PRICES SLIP BELOW 2 PER THOUSAND CUBIC FEET OVER THE NEXT 18 MONTHS A STRONG INDICATION THE MARKET THINKS THAT DEMAND WILL REMAIN STRONG DELHI'S MR KIHNEMAN SAYS ADDS MR WAGNER NATURAL GAS DOESN'T STINK WHEN YOU LOOK AT IT THAT WAY DOES IT SPEAKING OF GAS OIL AND GAS STOCKS SHOWED SOME REAL ENERGY LAST WEEK SEVEN OF THE 15 BIGGEST GAINERS CAME FROM THE PETROLEUM PATCH ROWAN COS LED THE CHARGE JUMPING MORE THAN 33 TO 1050 A SHARE AFTER HANCOCK INSTITUTIONAL EQUITY SERVICES ON FRIDAY RAISED ITS RATING FOR THIS HOUSTONBASED DRILLING COMPANY TO A BUY HANCOCK PINNED THE SAME RATING ON NOBLE DRILLING HOUSTON WHICH PICKED UP 21 TO CLOSE AT 10625 HANCOCK CITED OPEC'S MEETING THAT ENDED LAST WEEK WITH A STRONGER AGREEMENT THAN ANTICIPATED AND AN ANNOUNCEMENT BY PHILLIPS PETROLEUM AND ANADARKO PETROLEUM OF THE SECONDBIGGEST OIL FIND IN SOME TIME OTHER ENERGY STOCKS ON THE MOVE INCLUDED HOUSTONBASED READING & BATES AND ENERGY VENTURES WHOSE BARGEDRILLING CAPABILITIES ARE USED IN SWAMPY MARSHY AREAS SUCH AS LOUISIANA READING & BATES VAULTED 25 TO 10 WHILE ENERGY VENTURES CLIMBED 24 TO 17625 IT HAS BEEN ROUGH RUNNING FOR DATA RACE LATELY THIS MAKER OF COMPUTERCOMMUNICATIONS EQUIPMENT LOST 28 LAST WEEK TO 750 AFTER RAYMOND JAMES & ASSOCIATION ON FRIDAY LOWERED TO HOLD ITS INVESTMENT RATING FOR THIS SAN ANTONIO COMPANY RAYMOND JAMES SERVED AS THE COMPANY'S LEAD UNDERWRITER THE CHANGE CAME AFTER THE COMPANY SAID IT EXPECTS A MODEST OPERATING LOSS FOR THE FIRST FISCAL QUARTER ENDED SEPT 30 THE COMPANY EARNED 107 MILLION OR 31 CENTS PER SHARE IN LAST YEAR'S FIRST QUARTER DATA RACE WENT PUBLIC A YEAR AGO AT 13 AND MOVED AS HIGH 3075 BEFORE BEGINNING A NINEMONTH SLIDE INTO THE SINGLE DIGITS 9312300106 931006 TEXAS JOURNAL AROUND THE STATE MAKERS OF TOFU SEE AN OPENING BY TARA PARKERPOPE TEXAS AGRICULTURAL COMMISSIONER RICK PERRY HAS BEEN PUSHING RESTAURANTS TO SERVE TOTALLY TEXAS MENUS BUT THE TOPSELLING DISH AT ONE EATERY IS ENOUGH TO MAKE THE STATE'S CATTLE RAISERS HIDE THEIR HEADS IN THE SAND HUNTINGTON'S RESTAURANT IN DALLAS'S WESTIN GALLERIA HAS A THRIVING TOTALLY TEXAS MENU IN FACT THE STATE FARE ACCOUNTS FOR THREEQUARTERS OF ITS BUSINESS THERE'S JUST ONE LITTLE DETAIL THE MOST POPULAR TOTALLY TEXAS ITEM PANSEARED AND SERVED WITH SUNDRIED BLUEBERRY VINAIGRETTE IS OSTRICH NATIVE TO AFRICA AND PARTS OF ASIA OSTRICH DOESN'T HAVE A STRONG TEXAS CONNECTION GRANTED THE BIRDS THAT END UP ON HUNTINGTON'S PLATES WERE RAISED IN THE STATE BUT THEY DON'T STIR QUITE AS MUCH LOCAL PRIDE AS THE RESTAURANT'S NO 2 TEXAS OFFERING GRILLED MEDALLIONS OF LONGHORN BEEF WHY DID HUNTINGTON'S INCLUDE OSTRICH WE GET ASKED THAT A LOT SAYS CHEF MICHAEL COLLIER WE JUST SAY THE BIRDS ARE RAISED IN TEXAS IT WAS A SHOT IN THE DARK AND IT'S TURNED OUT WELL THE STATE'S BEEF PRODUCERS SAY THE OSTRICH POSES LITTLE THREAT TO THEIR BREAD AND BUTTER I THINK PROBABLY SOME OF THE HEALTHFOOD NUTS MAY THINK THEY'RE MAKING THEIR LIVES LONGER BY EATING OSTRICH SAYS JOE HATHOOT PRESIDENT OF CANADIAN FEED YARD INC IN THE PANHANDLE TOWN OF CANADIAN BUT MY GRANDDADDY LIVED TO BE 90SOMETHING AND HE ATE BEEF THREE TIMES A DAY 9312300104 931013 TEXAS JOURNAL LETTER TO THE EDITOR REGARDING YOUR OCT 6 ARTICLE ON CHARITY CARE NONPROFIT HOSPITALS FAIL THE CHARITY TEST THE STATISTICS FOR DOCTORS HOSPITAL ARE NOT REPRESENTATIVE OF ACTUAL CHARITABLE CONTRIBUTIONS TO OUR COMMUNITY DOCTORS HOSPITAL WAS GRANTED NOTFORPROFIT STATUS ON APRIL 23 1991 AND DID NOT BEGIN TO RECORD ALL CHARITY DOLLARS AS AN IDENTIFIABLE DEDUCTION UNTIL JAN 1 1992 EVEN THEN AND AS IS THE CASE WITH MOST HOSPITALS SIGNIFICANT AMOUNTS OF CHARITY DOLLARS ARE PLACED IN THE CATEGORY OF BAD DEBT AS THERE HAVE BEEN LIMITED GUIDELINES TO DEFINE CHARITY WE EXPECT THAT THERE WILL CONTINUE TO BE CHARITY CARE CLASSIFIED AS BAD DEBT UNDER THE NEW TEXAS LAW THAT WENT INTO EFFECT SEPT 1 1993 MANY RECIPIENTS OF HEALTH CARE ARE NOT FINANCIALLY ABLE TO PAY YET CANNOT MEET STRINGENT GUIDELINES TO RECEIVE CHARITY CARE AS NOW SET FORTH 9312300014 931006 TEXAS JOURNAL OK BUT WHICH TASTES THE BEST AFTER A CHEWING BY ROBERT JOHNSON HOUSTON FIRST IT WAS ROLEX WATCHES THEN LOUIS VUITTON TRAVEL BAGS NOW MONTBLANC PENS YES ANOTHER DESIGNER SYMBOL OF EXCESS IS BEING THREATENED BY A CHEAP KNOCKOFF THE MAKER OF MONTBLANC PENS THOUGHT IT HAD INTERCEPTED ALL THE SHIPMENTS OF THE FAKE PENS WHICH ARE MADE IN TAIWAN IN NEW YORK AND LOS ANGELES BUT THE COPIES WHICH THE COMPANY SAYS ARE ILLEGAL HAVE NOW SHOWN UP IN HOUSTON AND DALLAS IT'S A HUGE PROBLEM HUNDREDS OF THOUSANDS OF THESE FAKES HAVE BEEN SEIZED SAYS JEFF LEVICK A SPOKESMAN FOR MONTBLANC USA THE BLOOMSBURY NJ SUBSIDIARY OF THE GERMAN COMPANY THAT MAKES MONTBLANCS REAL MONTBLANCS DISTINGUISHED BY THEIR HEAVY BLACK BUMBLEBEE STYLE INCLUDING 18CARAT GOLD TRIM RANGE IN PRICE FROM 135 FOR THE PLAINEST BALLPOINT TO 100000 FOR A DIAMONDENCRUSTED PERSONALIZED MODEL THAT TAKES A YEAR TO MAKE IF ONE REALLY NEEDS A HUNDREDTHOUSAND DOLLAR PEN SAYS MR LEVICK AND ONE MIGHT PLENTY OF PEOPLE APPARENTLY NEED THE 895 COPIES SELLING AT SUCH STORES AS THE RIBBON COMPANY IN DOWNTOWN HOUSTON THEY'RE GOOD SAYS OWNER SUE PARK THEY'RE SELLING REALLY WELL SHE SAYS THE FAKE MONTBLANCS LOOK JUST LIKE THE REAL ONES EXCEPT FOR THE LACK OF A SMALL WHITE STAR NEAR THE POCKET CLIP SO IT'S DIFFERENT FROM THE ORIGINALS SHE INSISTS AS FOR MONTBLANC OFFICIALS SHE DOUBTS THEY CARE ABOUT A FEW CHEAP PENS OH MONTBLANC CARES MR LEVICK SAYS THEY DEFINITELY CARE HE VOWS THE COMPANY WILL COMPLAIN TO US CUSTOMS SERVICE OFFICIALS IN TEXAS THE REAL MONTBLANCS HANDMADE IN HAMBURG GERMANY ARE MORE ENDURING THAN THE PLASTIC IMITATIONS SAYS MR LEVICK FOR PEOPLE WHO CAN'T TELL THE DIFFERENCE IT'S TOO BAD HE SAYS BECAUSE THEY'LL BE LEFT WITH A BAD TASTE IN THEIR MOUTH BUT FOR FAKES THE 895 PENS IN TEXAS AREN'T SUCH A BAD DEAL HE CONCEDES WE HAVE FOUND SOME SELLING FOR 80 TO 90 IN NEW YORK HE SAYS 9312300011 931027 TEXAS JOURNAL BUILDERS TRY TO RAZE WAGES AFTER EL PASO RAISES THEM BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL THE CITY OF EL PASO IS REQUIRING THAT CONSTRUCTION WORKERS BE PAID MORE AND LOCAL BUILDING CONTRACTORS ARE GOING THROUGH THE ROOF EARLIER THIS YEAR CITY AND COUNTY OFFICIALS IN EL PASO VOTED TO INCREASE THE MINIMUM WAGES THAT CAN BE PAID TO WORKERS ON MUNICIPAL BUILDING AND ROAD PROJECTS UNDER THE NEW LAW THESE SOCALLED PREVAILING WAGES ARE ON AVERAGE 75 ABOVE THE AREA'S PREVAILING WAGE RATES ON FEDERAL PROJECTS THE CITY'S ACTION WHICH WAS INSTIGATED BY LOCAL CONSTRUCTION UNIONS HAS CONTRACTORS HOWLING THEY ARE INSISTING ON A RETURN TO THE LOWER MINIMUM FEDERAL RATES SET BY THE DEPRESSIONERA DAVISBACON ACT THAT ACT REQUIRES THAT WORKERS ON FEDERAL PROJECTS BE PAID WAGES SIMILAR TO THOSE PAID TO WORKERS ON NONFEDERAL PROJECTS IN THE SAME AREA CONTRACTORS CONTEND THEIR HIGHER LABOR COSTS WHICH ACCOUNT FOR ABOUT ONETHIRD OF A CONTRACT'S COST WILL RAISE THE EXPENSE OF MUNICIPAL PROJECTS AT LEAST 20 THIS THEY SAY WILL MEAN EITHER HIGHER CITY COSTS AND HIGHER TAXES TO PAY FOR THEM OR LESS WORK DONE FOR THE SAME MONEY THIS IS A VERY COMPETITIVE INDUSTRY SAYS RICHARD BARTH VICE PRESIDENT OF JD ABRAMS INC AN AUSTIN GENERAL CONTRACTOR MARGINS ARE VERY TIGHT AND THERE'S NO PLACE TO ABSORB THESE INCREASES CONTRACTORS ALSO WORRY THAT THE HIGHER WAGE SCALE WILL ELIMINATE THE ADVANTAGE A NONUNION CONTRACTOR HAS HAD OVER A UNION SHOP IN BIDDING FOR CITY WORK EL PASO OFFICIALS INSIST THE HIGHER SCALE NEED NOT MAKE CITY PROJECTS MORE EXPENSIVE BECAUSE BETTER WAGES WILL ATTRACT BETTERSKILLED AND MOREPRODUCTIVE WORKERS THEY ALSO DEFEND THE MOVE AS A WAY TO BOOST THE AREA'S ECONOMY BY PUTTING MORE MONEY INTO WORKERS' POCKETS IN THE BORDER CITY WHERE LEGIONS OF WORKERS CROSS DAILY FROM MEXICO CONSTRUCTION JOBS PAY ABOUT ONETHIRD OF THE NATIONAL AVERAGE UNION OFFICIALS SAY THE NEW SCALE LIFTS THAT TO LITTLE MORE THAN HALF OF THE NATIONAL FIGURE ONE OF EL PASO'S PROBLEMS HISTORICALLY HAS BEEN ITS ABYSMALLY LOW WAGE RATES SAYS GENE FINKE THE MAYOR PRO TEM THIS IS ALL PART OF ECONOMIC IMPROVEMENT FOR OUR CITY THE CITY HAS MORE THAN 80 MILLION IN BUILDING PROJECTS PLANNED FOR FISCAL 1994 OFFICIALS ARE ALSO PREPARING FOR A 45 MILLION EXPANSIONANDREHABILITATION PROGRAM AT EL PASO INTERNATIONAL AIRPORT THE NEW RATE SETS THE MINIMUM WAGE FOR A BULLDOZER OPERATOR ON A CITY PROJECT AT 1322 AN HOUR THE FEDERAL RATE IN EL PASO COUNTY IS ABOUT 765 AN HOUR A CARPENTER NOW GETS 1031 AN HOUR COMPARED WITH 874 UNDER THE FEDERAL RATE THE NEW RATES HAVE RUN AFOUL OF THE FEDERAL AVIATION AGENCY WHICH PARTIALLY FINANCES SOME AIRPORT PROJECTS FAA OFFICIALS HAVE REFUSED TO PROVIDE GRANTS TO BE USED FOR FUTURE CONSTRUCTION PROJECTS UNLESS THE CITY CALCULATES THE EXTRA COST DUE TO THE NEW WAGE RATES THE FAA THEN EXPECTS THE CITY TO PAY THOSE EXTRA COSTS BUT THE CITY COUNCIL HASN'T CHANGED ITS MIND AND SO THE CONTRACTORS BATTLE ON THEY UNSUCCESSFULLY TRIED TO OVERTURN THE NEW RATES IN A LAWSUIT FILED IN STATE DISTRICT COURT IN EL PASO AND ATTORNEYS FOR THE ASSOCIATION OF GENERAL CONTRACTORS ARE WARNING THAT LABOR UNIONS EMBOLDENED BY THEIR SUCCESS IN EL PASO COULD TAKE THEIR CAMPAIGN TO OTHER CITIES SO FAR THE GROUP'S WARNINGS ABOUT COSTS HAVE PROVED UNFOUNDED CITY OFFICIALS SAY FOR INSTANCE ALTHOUGH THE ARCHITECTS' 45 MILLION ESTIMATE FOR THE AIRPORT EXPANSION INCLUDES A 4 MILLION INCREASE DUE TO THE HIGHER WAGES THE CITY CONTINUES TO BELIEVE THAT THE ACTUAL BIDS WILL BRING THE COST OF THE PROJECT BELOW 45 MILLION AS EVIDENCE CITY OFFICIALS SAY CONSIDER A CONTRACT ISSUED RECENTLY FOR AN AIRPORT TAXIWAY REPAVING JOB UNRELATED TO THE EXPANSION CONTRACTORS IN THEIR SUIT PREDICTED THE NEW RATES WOULD INCREASE THE REPAVING COST ESTIMATED AT ABOUT 9 MILLION BY 1 MILLION BUT THE APPARENT LOW BIDDER CAME IN WITH A BID OF 67 MILLION AS LONG AS PROJECTS COME IN UNDER BUDGET SAYS MR FINKE IT'S HARD TO HAVE A SERIOUS CONCERN 9312290165 931229 TEXAS JOURNAL AT LAST A PC WAY TO DO SOMETHING FOR A HEADACHE BY LAURA JOHANNES A DALLAS CHEMICAL COMPANY IS MAKING HEADWAY WITH A NEW GREEN PROCESS FOR MAKING IBUPROFEN THAT WON'T GIVE ENVIRONMENTALISTS A HEADACHE BHC CO OPENED A PLANT IN BISHOP TEXAS LAST YEAR TO COOK UP TEST BATCHES OF A NEW ENVIRONMENTALLY FRIENDLY VERSION OF THE POPULAR PAINKILLER NOW THE COMPANY SAYS SEVERAL CUSTOMERS INCLUDING THE MAKERS OF ADVIL BRAND IBUPROFEN HAVE OBTAINED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO USE BHCMADE IBUPROFEN IN TABLETS BHC A JOINT VENTURE OF BOOTS PLC OF BRITAIN AND HOECHSTCELANESE CORP OF SOMERVILLE NJ SAYS THE STANDARD PROCESS FOR MAKING IBUPROFEN PRODUCES NINE MAJOR BYPRODUCTS INCLUDING METHANOL AND SALT MANY OF WHICH MUST BE TREATED BEFORE THEY ARE RELEASED BHC'S PROCESS YIELDS ONLY ONE SIGNIFICANT BYPRODUCT THE COMPANY SAYS ACETIC ACID WHICH BHC BOTTLES AND SELLS TO CHEMICAL COMPANIES AND OTHERS BHC MAY ALREADY BE CREATING AT LEAST ONE HEADACHE FOR OTHER US SUPPLIERS OF IBUPROFEN THE COMPANY SAYS ITS BISHOP PLANT HAS THE CAPACITY TO MAKE ENOUGH IBUPROFEN FOR 15 BILLION TABLETS A YEAR OR MORE THAN THREEQUARTERS OF THE US MARKET IN ITS FIRST FEW MONTHS OF OPERATION THE COMPANY HAS CAPTURED ABOUT HALF OF THE BULK MARKET FOR IBUPROFEN SAYS JIM ALDER BHC'S PRESIDENT THE BULK MARKET WHICH TOTALS ABOUT 90 MILLION A YEAR CONSISTS OF SALES TO OVERTHECOUNTER MEDICINE COMPANIES SUCH AS ADVIL'S MAKER THE WHITEHALL LABORATORIES UNIT OF AMERICAN HOME PRODUCTS CORP OF NEW YORK THE BISHOP PLANT'S SALES HAVE GROWN SO FAST PRIMARILY BECAUSE BOOTS REFERRED ITS US CUSTOMERS TO THE NEW VENTURE BUT MR ALDER SAYS THE COMPANY HAS BEGUN TRYING TO ATTRACT CUSTOMERS FROM ETHYL CORP OF BATON ROUGE LA THE OTHER BIG PLAYER IN THE US BULK IBUPROFEN MARKET AN ETHYL SPOKESMAN DECLINES TO GIVE DETAILS ABOUT HIS COMPANY'S PROCESS FOR MAKING IBUPROFEN BUT SAYS IT IS ENVIRONMENTALLY SOUND AND VERY COMPETITIVE THE COMPANY ALSO WON'T DISCUSS ITS MARKET SHARE 9312290164 931229 TECHNOLOGY & HEALTH INTEL'S SUIT AGAINST ADVANCED MICRO OVER CHIP COPYING ACCELERATED BY COURT BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL APPEALS COURT ISSUED AN ORDER ACCELERATING AN INTEL CORP LAWSUIT AGAINST ADVANCED MICRO DEVICES INC THAT SEEKS AS MUCH AS 600 MILLION IN DAMAGES FOR ALLEGED ILLEGAL COPYING OF A COMPUTER CHIP INTEL WHICH OWNS A NEAR MONOPOLY ON THE MARKET FOR CHIPS THAT ACT AS THE BRAINS IN PERSONAL COMPUTERS HAD SUED ADVANCED MICRO DEVICES IN 1991 FOR ALLEGED FEDERAL COPYRIGHT INFRINGEMENT AFTER THE SMALLER COMPANY BEGAN PRODUCING CLONES OF INTEL'S 386 MICROPROCESSOR ADVANCED MICRO ARGUES THAT IT HAS THE RIGHTS UNDER A 1982 TECHNOLOGYSHARING AGREEMENT TO SELL ITS VERSION OF INTEL'S 386 CHIP BUT A JUDGE PRESIDING OVER THAT CASE IN US DISTRICT COURT IN SAN JOSE LAST YEAR ORDERED PROCEEDINGS SUSPENDED UNTIL AFTER CALIFORNIA COURTS COULD WEIGH IN ON A SEPARATE AWARD BY A STATE ARBITRATOR IN 1992 THAT GAVE ADVANCED MICRO THE RIGHT TO MANUFACTURE INTEL'S 386 CHIP AFTER THE CALIFORNIA COURT OF APPEALS GUTTED THE AWARD EARLIER THIS YEAR SAYING THE ARBITRATOR EXCEEDED HIS AUTHORITY THE STATE'S SUPREME COURT AGREED TO REVIEW THE CASE THE REVIEW IS EXPECTED TO BE COMPLETED LATE NEXT YEAR ANALYSTS HAVE SAID ADVANCED MICRO'S CHANCES OF GETTING THE STATE APPELLATE COURT DECISION REVERSED ARE VERY SLIM SINCE STATE LAW ON THE SCOPE OF ARBITRATION AWARDS APPEARS WELLSETTLED INDICATING THERE WAS NO LEGAL REASON WHY THE FEDERAL SUIT SHOULD AWAIT AN OUTCOME IN THE STATE COURTS THE NINTH CIRCUIT COURT OF APPEALS IN SAN FRANCISCO YESTERDAY LIFTED THE STAY ON THE CASE IMPOSED BY THE SAN JOSE MAGISTRATE PATRICIA TRUMBULL AND ORDERED HER TO RESUME PROCEEDINGS WITH TWO RELATED FEDERAL CHIP INFRINGEMENT CASES BY INTEL AGAINST ADVANCED MICRO MOVING TO TRIAL IN COMING MONTHS IN THE SAME SAN JOSE COURT THE RULING BY THE FEDERAL APPEALS COURT MEANS THAT SUNNYVALE CALIFBASED ADVANCED MICRO MAY SOON HAVE ITS DAY IN COURT ADVANCED MICRO HAS PINNED MUCH OF ITS MARKET SUCCESS ON CLONING BOTH THE INTEL 386 AND 486 CHIPS THIS ESSENTIALLY PUTS IT THE LITIGATION ON THE SHOT CLOCK SAID TOM DUNLAP GENERAL COUNSEL FOR INTEL WHICH IS BASED IN SANTA CLARA CALIF ADVANCED MICRO OFFICIALS SAYING THEY BELIEVED THE NINTH CIRCUIT'S RULING WAS WRONG INDICATED THEY WOULD PETITION FOR A REHEARING BEFORE THE PANEL WE DO THINK THEY MADE ERRORS WHICH I WILL NOT ELABORATE ON AT THIS TIME SAID JOHN GREENAGEL A COMPANY SPOKESMAN MR GREENAGEL ADDED THAT THE RULING HAS NO IMMEDIATE IMPACT ON ADVANCED MICRO'S ABILITY TO SHIP PRODUCT AND HE NOTED THAT THE FEDERAL APPEALS COURT DID NOT ADDRESS THE FINDINGS BY THE ARBITRATOR ALL THEY HAVE DONE IS SAY THE FEDERAL PROCEEDINGS NEED NOT WAIT WHAT HAPPENS IN THE STATE HE SAID NEXT WEEK JURY SELECTION IS SCHEDULED TO BEGIN IN A SEPARATE SUIT BY INTEL THAT ALLEGES ADVANCED MICRO HAS HAD NO RIGHT TO COPY ANY INTEL CHIP INTEL ALLEGES THAT ADVANCED MICRO HAS ILLEGALLY COPIED NOT ONLY THE 386 CHIP BUT ALSO INTEL'S OLD 287 CHIP AND ITS CURRENT 486 CHIP THAT NOW COMPRISES THE BULK OF THE PC MARKET AND IN MARCH TRIAL IS EXPECTED TO COMMENCE ON PART OF THE INTEL SUIT AGAINST ADVANCED MICRO OVER ALLEGED INFRINGEMENT ON INTEL'S 486 CHIP JUDGE TRUMBULL YESTERDAY BOLSTERED INTEL'S CASE IN THAT MATTER WHEN SHE DENIED A REQUEST BY ADVANCED MICRO THAT INTEL BE MADE TO SHOW WHICH OF ITS 486 VERSIONS WERE ALLEGEDLY INFRINGED THAT'S IMPORTANT BECAUSE WITH ALL THE DIFFERENT VERSIONS AMD IS TRYING TO HIDE THE BALL MR DUNLAP SAID MR GREENAGEL SAID HE COULD NOT COMMENT ON THAT DECISION AS HE WAS NOT YET MADE AWARE OF IT MR DUNLAP SAID THE 386 COPYRIGHT SUIT WOULD PROBABLY GO TO TRIAL AFTER THE OTHER TWO CASES ARE SETTLED IN FEDERAL COURT THE 386 CASE IS MOST POTENTIALLY DAMAGING TO ADVANCED MICRO BECAUSE INTEL WANTS COMPENSATION FOR LOST PROFITS MR DUNLAP SAID INTEL LOST ABOUT 600 MILLION IN 386 PROFITS TO ADVANCED MICRO DURING 1991 ALONE AND HE HAS ESTIMATED TOTAL DAMAGES COULD BE TWO TO THREE TIMES THAT AMOUNT INTEL HAS NOT SPECIFIED EXACT DAMAGES SOUGHT EVEN IF ADVANCED MICRO LOSES THESE CASES ANY DAMAGE AWARDS MIGHT BE SETTLED FOR LESSER AMOUNTS MAINLY TO END LITIGATION THAT COULD DRAG ON FOR YEARS BUT ADVANCED MICRO CAN ILL AFFORD TO PAY ANY SIGNIFICANT DAMAGES SINCE IT NEEDS TO INVEST HEAVILY IN CHIP FABRICATION PLANTS TO COMPETE WITH INTEL 9312290162 931229 HE MIGHT BE A BISHOP BUT THAT DOESN'T MEAN THAT HE'S A BELIEVER BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE CHURCH OF ENGLAND HAS ALWAYS WRESTLED WITH NONBELIEVERS BUT NEVER ONE QUITE LIKE ITS CURRENT SKEPTIC A BISHOP OF THE CHURCH OF ENGLAND BEFORE CHRISTMAS WHILE MOST CLERGYMEN WERE WRITING HOMILIES AND PUTTING UP MANGERS THE BISHOP OF DURHAM THE RIGHT REV DAVID JENKINS DELIVERED A DIFFERENT MESSAGE ON BBC TELEVISION HE DISMISSED AS MYTHICAL THE STAR OF BETHLEHEM CALLING IT SPLENDIDLY SYMBOLIC HE SAID HE DIDN'T BELIEVE THERE WERE THREE WISE MEN WHO DELIVERED GOLD FRANKINCENSE AND MYRRH TO THE BABY JESUS BISHOP SENDS THE THREE WISE MEN PACKING REPORTED ONE NEWSPAPER AND THE BISHOP HAD BEGUN TO WONDER WHETHER JESUS WAS REALLY BORN IN A MANGER AFTER MARY WAS TURNED AWAY FROM THE INN PRETTY HEAVY STUFF FOR A BISHOP BUT FOR DR JENKINS IT'S ALL IN A DAY'S WORK ONLY A WEEK BEFORE HE HAD REJECTED THE EXISTENCE OF ETERNAL DAMNATION IN HELL AND SAID HE DIDN'T BELIEVE THERE WOULD BE A SECOND COMING OF CHRIST THE ARCHBISHOP OF CANTERBURY HEAD OF THE CHURCH OF ENGLAND ISSUED A STATEMENT SAYING THAT WHILE HE WELCOMES LIBERTY OF THOUGHT HE REGRETS THAT DR JENKINS SHOULD HAVE REOPENED THESE DIVISIVE ISSUES IN THE RUNUP TO CHRISTMAS OTHER CHURCHMEN ARE LESS CHARITABLE THE REV TONY HIGTON RECTOR AT HAWKWELL PARISH IN ESSEX SAID DR JENKINS IS PERCEIVED AS A BUFFOON HE ADDS HE HAS NO RIGHT TO BE A BISHOP AND I THINK THE ENGLISH HOUSE OF BISHOPS HAS FAILED VERY SERIOUSLY IN NOT DISCIPLINING HIM OR AT LEAST REFERRING TO HIS VIEWS FOR WHAT THEY ARE HERESY THE BISHOP SAYS HE'S NO HERETIC HE'S ONLY TRYING TO MAKE THE CHURCH MORE REALISTIC THE OBJECT IS TO OPEN UP PEOPLE WHO MAY HAVE BEEN TURNED OFF BY THE CHRISTIAN RELIGION AS OLDFASHIONED SAYS THE BISHOP WHO WILL RETIRE AFTER 10 YEARS OF SERVICE IN JULY THE BISHOP OF DURHAM IS NO STRANGER TO ECCLESIASTICAL TUMULT IN 1984 BEFORE HIS CONSECRATION HE WENT ON TV AS AN ORTHODOX ANGLICAN THEOLOGIAN AT EASTER AND SAID HE DIDN'T BELIEVE IN THE VIRGIN BIRTH HE WAS ALSO QUOTED INCORRECTLY HE SAYS AS CALLING THE RESURRECTION A CONJURING TRICK WITH BONES A SPOKESMAN FOR THE CHURCH PUT A POSITIVE SPIN ON THE LATEST SACRILEGE HE'S GOT RELIGION INTO THE PAPERS AGAIN THE SPOKESMAN SAYS HE GETS PEOPLE TALKING ABOUT IT THAT'S HOW PEOPLE COME TO GOD 9312290160 931229 TEXAS JOURNAL HEARD IN TEXAS BABBAGE'S STOCK LANGUISHES AS IT WAITS FOR VIDEO GAMES TO MOVE TO NEW LEVEL BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS IN RECENT WEEKS INVESTORS HAVE STOMPED ON BABBAGE'S STOCK LIKE A SUPER MARIO BROTHER SQUASHING VIDEOWORLD VILLAINS SINCE MIDNOVEMBER THE CONSUMER SOFTWARE RETAILER'S STOCK HAS GIVEN UP NEARLY 52 OF ITS VALUE TUMBLING TO 14 FROM 29 PRICES THAT BASICALLY FRAME THE STOCK'S YEARLY HIGH AND LOW THE NOSEDIVE WAS SPURRED BY A COMPANY REPORT INDICATING THAT VIDEOGAME SALES WHICH MAKE UP ABOUT TWOTHIRDS OF BABBAGE'S ANNUAL REVENUE WERE SLUGGISH AT BEST DURING THE CRUCIAL THANKSGIVING WEEKEND AND CONTRIBUTED TO A 10 DECLINE IN NOVEMBER SALES AT STORES OPEN AT LEAST A YEAR THAT COULD PROVE TROUBLING TO A COMPANY THAT HISTORICALLY AMASSES ALL OF ITS EARNINGS FOR THE YEAR DURING THE CHRISTMAS QUARTER TAKE FOR EXAMPLE ITS FOURTH QUARTER LAST YEAR BABBAGE'S REPORTED NET INCOME OF 136 A SHARE COMPARED WITH THE 129 A SHARE THE COMPANY POSTED FOR THE ENTIRE YEAR AND ALL OF THIS AMID RECORD SALES FOR VIDEOGAME SYSTEMS AND SOFTWARE PARTICULARLY AT MASS MERCHANDISERS THAT HAS MANY INVESTORS WONDERING WHETHER LIKE PONG BABBAGE'S TIME HAS COME AND GONE BUT ANALYSTS AND MONEY MANAGERS ARGUE THAT THE COMPANY'S FUTURE IS SECURE AND THAT FOR INVESTORS WITH A TIME HORIZON OF A YEAR OR MORE NOW MIGHT PROVE AN OPPORTUNE TIME TO BUY FROM A VALUATION PERSPECTIVE BABBAGE'S IS A BARGAIN IF YOU'VE GOT THE PATIENCE TO SIT WITH IT SAYS PAUL ROKOSZ AN ANALYST WITH KEMPER FINANCIAL SERVICES WHICH OWNS ALMOST 450000 SHARES SPREAD AMONG SEVERAL GROWTH FUNDS TO BE SURE THE WAIT PROBABLY WILL BE CHARACTERIZED BY TORPID SALES AND A STAGNANT STOCK PRICE IN THE WEEKS FOLLOWING THANKSGIVING THE COMPANY REPORTED NO SUBSTANTIAL PICKUP IN CONSUMER SPENDING AT THEIR STORES AND MANY ANALYSTS ARE ASSUMING SALES COMPARISONS FOR STORES OPEN A YEAR OR MORE WILL REMAIN NEGATIVE FOR THE NEXT FEW MONTHS ESTIMATES THAT BABBAGE'S WILL EARN 152 TO 170 A SHARE IN ITS FISCAL FOURTH QUARTER ENDING JAN 30 ARE PROBABLY TOO HIGH BASED ON THANKSGIVING'S DISAPPOINTING NUMBERS SAYS LYNN DETRICK AN ANALYST AT WILLIAMS MCKAY JORDAN IN HOUSTON BABBAGE'S MOST IMMEDIATE PROBLEMS ARE THE VIDEOGAME INDUSTRY'S LACK OF A NEW BLOCKBUSTER TECHNOLOGY A DEARTH OF HOT NEW GAME TITLES THIS YEAR AND MASS MERCHANDISERS THAT HAVE BEGUN TO INVADE BABBAGE'S TURF HAWKING NINTENDO OF AMERICA AND SEGA OF AMERICA VIDEOGAME SYSTEMS AND SOFTWARE AT PRICES SOMETIMES BELOW COST INDEED WHILE ANALYSTS EXPECT US VIDEOGAME SALES TO HIT AN ALLTIME HIGH OF 572 BILLION FOR 1993 FULLY HALF COMING DURING THE CHRISTMAS SEASON BABBAGE'S HASN'T BEEN A BENEFICIARY INSTEAD MASS MERCHANTS SUCH AS WALMART AND KMART HAVE RACKED UP THE SALES PARTICULARLY OF THE ULTRAPOPULAR SEGA GENESIS MACHINE MADE BY THE UNIT OF JAPAN'S SEGA ENTERPRISES IN FACT NPD GROUP A PORT WASHINGTON NY MARKETRESEARCH FIRM NOTES THAT MASS MERCHANDISERS' SHARE OF THE VIDEOGAME MARKET WAS 32 LAST YEAR AND SHOULD RISE SIGNIFICANTLY THIS YEAR THAT WASN'T THE CASE A YEAR AGO WHEN THE SEGA GENESIS AND SUPER NINTENDO MACHINES BASED ON WHAT IS KNOWN AS 16BIT TECHNOLOGY WERE HOT SELLERS AT BABBAGE'S AND HELPED THE COMPANY ACCUMULATE 1007 MILLION IN SALES FOR ITS FOURTH QUARTER 30 MORE THAN THE YEAREARLIER PERIOD FROM OCTOBER 1992 TO FEBRUARY 1993 BABBAGE'S SHARES DOUBLED TO 29 AIDING THE CAUSE WAS THE THE FACT THAT THE SEGA SYSTEM WHICH MOST ANALYSTS AGREE HAS BECOME MORE POPULAR THAN MACHINES MADE BY THE US UNIT OF JAPAN'S NINTENDO WASN'T AVAILABLE THROUGH MASS MERCHANTS AS SUCH ELECTRONICS BOUTIQUES SUCH AS BABBAGE'S WHICH THRIVES AS A PURVEYOR OF THE HOTTEST IN VIDEOGAME TECHNOLOGY HAD SOMETHING OF A CAPTIVE MARKET ALL OF THAT HAS CHANGED THIS YEAR SEGA GENESIS CAN BE HAD AT MASS MERCHANDISERS WHICH IN AN EFFORT TO INCREASE THEIR PRESENCE IN THE VIDEOGAME MARKET HAVE PRICED THE SYSTEMS AS WELL AS THE SUPER NINTENDO MACHINES AS MUCH AS 10 TO 15 BELOW COST IN MANY CASES ALSO BABBAGE'S TRADITIONAL CUSTOMER A MORE UPSCALE CONSUMER WHO DEMANDS THE LATEST AND GREATEST IN GAME TECHNOLOGY AND WHO IS WILLING TO PAY A PREMIUM TO GET IN EARLY NOW CONSIDERS 16BIT VIDEO SYSTEMS TO BE A BIT ANTIQUATED INSTEAD THESE JOYSTICK JOCKEYS ARE WAITING FOR THE NEXT GENERATION OF VIDEOGAME MACHINES BASED ON 32BIT CDROM OR 64BIT TECHNOLOGY WHICH HAVE FAR SUPERIOR GRAPHICS AND SOUND YET NEITHER NINTENDO NOR SEGA HAS GIVEN BABBAGE'S CLIENTELE A GOOD ENOUGH REASON TO REPLACE THEIR 16BIT SYSTEMS A PANASONIC3DO PARTNERSHIP RECENTLY RELEASED ITS INTERACTIVE CDROMBASED SYSTEM AND SEGA OFFERS A CDROM UNIT THAT ATTACHES TO ITS CURRENT 16BIT GENESIS MACHINE BUT ANALYSTS SAY THE GRAPHICS QUALITY ISN'T A BIG IMPROVEMENT AND PRICES AREN'T VERY ENTICING THERE IS HOPE THOUGH THE NEXT GENERATION OF VIDEOGAME HARDWARE IS SCHEDULED TO HIT THE SHELVES IN TIME FOR NEXT CHRISTMAS AND THAT SHOULD JUMPSTART BABBAGE'S STOCK ONE ANALYST NOTES THAT HISTORICALLY THE WAY TO MAKE MONEY IN BABBAGE'S SHARES HAS BEEN TO INVEST WHEN THE VIDEOGAME INDUSTRY IS MOVING INTO A NEW TECHNOLOGICAL ARENA STILL MOST ANALYSTS CURRENTLY RATE BABBAGE'S STOCK NEUTRAL BECAUSE VIDEOGAME MAKERS ARE NOTORIOUSLY LATE DELIVERING LONGANTICIPATED PRODUCTS BE IT NEW SYSTEMS OR GAME CARTRIDGES IF SEGA OR NINTENDO FAIL TO RELEASE THEIR NEW GAME TECHNOLOGIES BEFORE NEXT CHRISTMAS BABBAGE'S STOCK PROBABLY WON'T SEE AN UPSWING UNTIL 1995 SAYS KEMPER'S MR ROKOSZ NINE MONTHS ENDED OCT 30 1993 THIRD QUARTER ENDED OCT 30 1993 AMTECH THE DALLASBASED MAKER OF ELECTRONIC IDENTIFICATION SYSTEMS PULLED IN AS THE TOP LOSER OF THE WEEK DROPPING 17 TO 2325 AMTECH RECEIVED PRELIMINARY NOTICE THAT THE CALIFORNIA DEPARTMENT OF TRANSPORTATION INTENDS TO AWARD A 40 MILLION CONTRACT FOR AN ADVANCED TOLLCOLLECTION AND ACCOUNTING SYSTEM TO A COMPETING BIDDER GREYHOUND LINES' SHARES LOST 115 ON NEWS THAT EVEN THOUGH THE INTERCITY BUS COMPANY SAID NOVEMBER TRAFFIC ROSE 81 TO 4457 MILLION REVENUE PASSENGER MILES FROM A YEAR AGO IT EXPECTS EARNINGS FOR THE YEAR TO BE BELOW LAST YEAR'S 96 CENTS A SHARE CONTINENTAL AIRLINES' CLASS B SHARES DROPPED 125 ON SIX TIMES ITS AVERAGE VOLUME THE FEDERAL AVIATION ADMINISTRATION GRANTED THE HOUSTON AIRLINES' CONTINENTAL EXPRESS UNIT THE FIRST AUTHORIZED USE OF THE SATELLITEBASED GLOBAL POSITIONING SYSTEM FOR NONPRECISION APPROACHES AT ASPEN AND STEAMBOAT SPRINGS COLO 9312290158 931229 MAIN STREET COMMUNITY BANCORP WALTHAM MASS MAIN STREET COMMUNITY BANCORP INC SAID IT COMPLETED ITS INITIAL PUBLIC OFFERING OF 2907200 COMMON SHARES AT 10 A SHARE THE PROCEEDS OF THE OFFERING WERE ABOUT 291 MILLION THE COMPANY SAID MAIN STREET SAID IT CONTRIBUTED 50 OF THE PROCEEDS TO FEDERAL SAVINGS BANK WHICH BECAME A WHOLLY OWNED MAIN STREET UNIT UPON COMPLETION OF THE OFFERING MAIN STREET COMMON SHARES WERE SOLD IN A SUBSCRIPTION OFFERING TO CERTAIN ELIGIBLE ACCOUNT HOLDERS OF FEDERAL SAVINGS BANK AS WELL AS TO THE BANK'S EMPLOYEE STOCK OWNERSHIP PLAN THE IPO COMPLETED THE CONVERSION OF THE BANK TO A STOCK FORM FROM A MUTUAL FORM AT SEPT 30 THE BANK HAD TOTAL ASSETS OF ABOUT 338 MILLION THE COMPANY SAID 9312290157 931229 INTERNATIONAL TAIWAN'S PRODUCTION OUTLOOK TAIPEI TAIWAN THE CENTRAL BANK OF CHINA SAID IT EXPECTS TAIWAN'S GROSS NATIONAL PRODUCT TO GROW 61 IN 1994 UP SLIGHTLY FROM THE ESTIMATED 6 GNP GROWTH THIS YEAR BANK OFFICIALS SAID AT A NEWS CONFERENCE THAT TAIWAN'S TRADE SURPLUS WILL TOTAL 46 BILLION US NEXT YEAR COMPARED WITH 41 BILLION FOR 1993 THE CENTRAL BANK PREDICTS TAIWAN'S CONSUMER PRICE INDEX WILL GROW AT 36 IN 1994 UP FROM 29 THIS YEAR 9312290156 931203 PLAN TO BAR NONLAWYER ADVISERS IN INVESTOR DISPUTES IS DEBATED BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL BOCA RATON FLA A PROPOSAL TO BAR NONLAWYERS FROM REPRESENTING INVESTORS IN CASES BROUGHT AGAINST BROKERAGE FIRMS HAS TRIGGERED A FIRESTORM OF CONTROVERSY OVER THE ARBITRATION PROCESS THE PLAN BY THE SECURITIES INDUSTRY CONFERENCE ON ARBITRATION WHICH DRAFTS AND MONITORS ARBITRATION CODES IS AMONG THE BURNING ISSUES DEBATED AT THE ANNUAL CONVENTION OF THE SECURITIES INDUSTRY ASSOCIATION HERE THE DEBATE IS SIGNIFICANT FOR INVESTORS WHEN OPENING A BROKERAGE ACCOUNT MANY INVESTORS SIGN A STANDARD AGREEMENT THAT BINDS THEM TO ARBITRATION RATHER THAN COURT IN THE EVENT OF A DISPUTE WITH THEIR BROKER SINCE 1987 THE NUMBER OF ARBITRATION ACTIONS HAS SURGED 84 AT THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WHICH HANDLES ABOUT 80 OF ALL SECURITIESARBITRATION CASES SICA SAYS IT PROPOSED THE RULE BECAUSE IT BELIEVES NONATTORNEY ADVISERS MAY NOT BE COMPETENT TO DEAL WITH AN INCREASINGLY COMPLEX ARBITRATION PROCESS SOME INVESTORS HAVE GROUSED THAT SUCH ADVISERS HAVE MADE PROCEDURAL ERRORS THAT HAVE COST THEM CASES OTHERS SAY ADVISERS SETTLE CASES FOR FAR TOO LITTLE A PRINCIPAL OFFICER IN ONE ADVISORY FIRM WAS BANNED FROM THE SECURITIES INDUSTRY BY REGULATORS FOR TRADING ABUSES AMONG OTHER SICA CONCERNS THERE IS NO SUPERVISORY BODY NO MALPRACTICE INSURANCE NO ATTORNEYCLIENT PRIVILEGE AND NO ETHICS OR ADVERTISING CODE SUCH AS THOSE GOVERNING ATTORNEYS THEY JUST MUCK UP THE SYSTEM SAYS WILLIAM FITZPATRICK THE SECURITIES INDUSTRY ASSOCIATION'S GENERAL COUNSEL THEY DON'T KNOW ENOUGH ABOUT WHAT THEY'RE DOING HE SAYS ADDING YOU NEED SOMEBODY WHO UNDERSTANDS THE LEGAL SYSTEM AND THEY JUST DON'T QUALIFY HOGWASH COUNTER NONATTORNEY ADVISERS THEY SAY THEIR FIRMS ARE A RELATIVELY CHEAP ALTERNATIVE FOR INVESTORS WITH SMALL CLAIMS WHO CAN'T AFFORD A LAWYER SEVERAL ADVISORY FIRMS ARE RUN BY FORMER BROKERS THEY SAY THEY KNOW THE BUSINESS THE FIRMS ADD THAT WHEN NECESSARY THEY WILL BRING IN LAWYERS ON COMPLEX CASES BUT ARBITRATION IS NOT SUPPOSED TO BE A LEGALDRIVEN PROCESS CONTENDS WILLIAM LEVINE CHAIRMAN OF INVESTORS ARBITRATION SERVICES INC OF WOODLAND HILLS CALIF THE NATION'S LARGEST NONATTORNEY ADVISER THE PLAN IS AN ABSOLUTE OUTRAGE THE PROPOSAL WHICH SICA COULD VOTE ON IN JANUARY UNDERSCORES THE RAPID CHANGES IN SECURITIES ARBITRATION ARBITRATION WAS INTENDED AS A CHEAP QUICK WAY TO RESOLVE DISPUTES BETWEEN INVESTORS AND BROKERS ALMOST ANYONE CAN REPRESENT AN INVESTOR IN AN ARBITRATION MATTER BUT DURING THE PAST FEW YEARS ARBITRATION HAS COME TO RESEMBLE A COURT WITH THE EMERGENCE OF PREHEARING MOTIONS PROTRACTED DISCOVERY OR THE FACTFINDING PROCESS AND DEBATES OVER FORUM AND APPEALS SOME INVESTOR GROUPS ARE WEIGHING IN AGAINST THE SICA PROPOSAL OUR MEMBERS HAVE HAD DIFFICULTY FINDING ATTORNEYS WHO HANDLE SECURITIES ARBITRATION FOR CLAIMS OF MODERATE SIZE JAMES CLOONAN CHAIRMAN OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS RECENTLY WROTE SICA NONATTORNEY ADVISERS HAVE MORE SPECIALIZED EXPERIENCE THAN ALL BUT A FEW ATTORNEYS AND APPEAR TO HAVE LOWER AVERAGE FEES MR CLOONAN SAID AAII A CHICAGO GROUP WITH 160000 MEMBERS HAS HELPED FUND INVESTORS ARBITRATION SERVICES AND HAS OPTIONS TO BUY AN EQUITY STAKE IN IT BUT THE HANDFUL OF NONATTORNEY SPECIALIST FIRMS DON'T ALWAYS COME CHEAPLY INVESTORS ARBITRATION SERVICES CHARGES INVESTORS A MINIMUM UPFRONT RETAINER OF 2000 PLUS FEES REPRESENTING 25 OF THE MONEY RECOVERED IF THE CASE IS SETTLED BEFORE A HEARING OR 30 OF AN ARBITRATION AWARD SOME INVESTORS SAY NONATTORNEY ADVISERS ARE MORE TROUBLE THAN THEY'RE WORTH IN A LAWSUIT FILED IN A LOS ANGELES SUPERIOR COURT TWO INVESTORS ALLEGED THAT INVESTORS ARBITRATION SERVICES FAILED TO FILE A NECESSARY DOCUMENT IN A CLASSACTION SUIT INVOLVING SOURED VMS MORTGAGE INVESTMENT FUND PARTNERSHIPS MARKETED BY PRUDENTIAL SECURITIES INC THE SUIT ALLEGES THE ADVISER'S ACTION FORCED THE INVESTORS TO ACCEPT A VMS CLASSACTION SETTLEMENT AND PREVENTED THEM FROM CONTINUING A RELATED ARBITRATION CLAIM DESPITE ASSURANCES THAT THEY COULD PROCEED ON BOTH MATTERS THAT'S NOT A GRAY AREA THAT'S NOT A JUDGMENT CALL THAT'S JUST WRONG SAYS H THOMAS FEHN A LOS ANGELES LAWYER REPRESENTING THE INVESTORS THE ALLEGATIONS ARE COMPLETELY BASELESS SAYS MICHAEL PAULE PRESIDENT AND CHIEF OPERATING OFFICER OF INVESTORS ARBITRATION SERVICES THE INVESTORS WERE FULLY AWARE OF THE SITUATION INVOLVING THE VMS CLASSACTION SETTLEMENT MR PAULE SAYS MEANWHILE AN OFFICER OF AT LEAST ONE ARBITRATIONADVISORY SERVICE HAS A CHECKERED DISCIPLINARY HISTORY ACCORDING TO PAPERS FILED WITH REGULATORS IN THE MOST NOTABLE CASE RICHARD SACKS VICE PRESIDENT OF INVESTORS RECOVERY SERVICE A NOVATO CALIF ARBITRATIONADVISORY FIRM WAS FINED 219000 BY THE NASD IN 1990 AND BANNED FROM THE SECURITIES BUSINESS FOLLOWING ALLEGATIONS THAT HE AND HIS FIRM CHARGED EXCESSIVE MARKUPS ON TRADES I'M ASHAMED OF IT I SHOULD HAVE BEEN SMARTER TO PREVENT THIS MR SACKS SAYS THOUGH HE INSISTS THAT THE ALLEGATIONS WERE GROUNDLESS I DISCLOSE IT TO CLIENTS IN MOST INSTANCES HE SAYS ADDING I DON'T THINK IT IN ANY WAY AFFECTS OUR ABILITY TO REPRESENT CLIENTS SEE RELATED LETTER LETTERS TO THE EDITOR BROKERS USE INVESTORS AS CASH COWS WSJ DEC 29 1993 9312030101 YY93 MM12 9312290155 931229 KMART TO CLOSE A STORE TROY MICH KMART CORP SAID IT WILL CLOSE ONE OF ITS THREE STORES IN BATON ROUGE LA EFFECTIVE MARCH 31 KMART CITED FOR THE CLOSURE OF THE 15YEAROLD STORE THE COMPANY'S STRATEGY OF EVALUATING ALL ITS STORES FOR EXPANSION REFURBISHING RELOCATION OR CLOSING 9312290154 931202 POLITICS & PEOPLE IT WON'T BE ANY EASIER FOR CLINTON IN '94 BY ALBERT R HUNT THE WHITE HOUSE WAS THE SETTING MONDAY FOR A SHORT 15 MINUTES BUT INTENSE DEBATE THAT HAD NONE OF THE TRAPPINGS OF A PRESIDENCY RIDING AS HIGH AS BILL CLINTON SUPPOSEDLY IS NOW THE ISSUE WAS MEANSTESTING OF ENTITLEMENTS PROPONENTS INCLUDED VICE PRESIDENT ALBERT GORE PRESIDENTIAL COUNSELOR DAVID GERGEN AND TREASURY SECRETARY LLOYD BENTSEN IN 1995 ON THE OTHER SIDE WERE SENIOR PRESIDENTIAL ADVISER GEORGE STEPHANOPOULOS CONGRESSIONAL LOBBYIST HOWARD PASTER AND POLITICAL ADVISERS ADVOCATING POSTPONING CONSIDERATION OF ANY MEASURE TRADITIONALLY ANATHEMA TO DEMOCRATS UNTIL AFTER 1996 RATHER THAN PASS OR RUN QUARTERBACK BILL CLINTON DECIDED TO PUNT ANY DECISION WOULD AWAIT THE COMMISSION ON ENTITLEMENTS HEADED BY SEN BOB KERREY BUT THE ISSUE WAS JOINED IN THE FIRST PLACE BECAUSE OF THE PAINFUL POLITICAL AND BUDGETARY REALITIES CONFRONTING THE ADMINISTRATION AS IT HEADS INTO ITS SECOND YEAR HIGH ON THE AGENDA ARE HEALTH CARE WELFARE REFORM AND SOME JOB RETRAINING PROGRAMS ALL COST MONEY IN THE SHORT RUN THE POLITICAL CROSSCURRENT IS A FISCAL SITUATION SO TIGHT THAT BUDGET DIRECTOR LEON PANETTA CURRENTLY IS SENDING THE AGENCIES BACK TO PARE AN ADDITIONAL 16 BILLION IN OUTLAYS AND 23 BILLION IN SPENDING AUTHORITY FROM THE FIRST DRAFT FISCAL 1995 BUDGET PROPOSALS AROUND THE CORNER IS POLITICAL CLAMOR ON CAPITOL HILL FOR MORE SPENDING CUTS AND A ILLCONCEIVED CONSTITUTIONAL AMENDMENT FOR A BALANCED BUDGET IT DOESN'T GET ANY EASIER ON FOREIGN POLICY ESPECIALLY GIVEN THE CLINTON TEAM'S PROBLEMS THIS YEAR NONE OF THIS DETRACTS FROM THE VERY IMPRESSIVE PRESIDENTIAL PERFORMANCE OVER THE PAST MONTH THE COME FROM BEHIND VICTORY ON NAFTA THE SUCCESSFUL STRUGGLE TO ENACT THE BRADY BILL RESTRICTIONS ON HANDGUN PURCHASES AND THE TIMELY INTERVENTION TO RESOLVE THE THANKSGIVING EVE AMERICAN AIRLINES STRIKE ALL GAVE BILL CLINTON AN AURA OF LEADERSHIP THAT SEEMED CONSPICUOUSLY ABSENT ONLY A FEW MONTHS EARLIER ON TOP OF THIS THE ECONOMY SEEMS ALMOST BUOYANT BUT WHILE THE WHITE HOUSE BASKS IN THIS RECENT GLORY AS ONE VERY HIGH ADMINISTRATION OFFICIAL PUTS IT IT'S LIKE THE BOSTON COLLEGE FOOTBALL TEAM AFTER ITS STUNNING LASTMINUTE VICTORY OVER NOTRE DAME LAST MONTH WHEN THE CHEERING SUBSIDED THERE WAS AN EVEN TOUGHER FOE WEST VIRGINIA AWAITING THEM MOREOVER DESPITE HIS OWN PERSONAL SUCCESSES THE PRESIDENT TACKLES THIS SECOND YEAR WITH A SHAKY FOUNDATION HIS PUBLIC STANDING IS ONLY FAIR ABOUT WHERE IT WAS IN MARCH THE CLINTON CABINET COLLECTIVELY HAS LOST STATURE THIS YEAR AND THE WHITE HOUSE TAKING ITS CUE FROM ITS LEADER IS A MANAGERIAL NIGHTMARE THE NEW CONVENTIONAL WISDOM IS THAT THE WAY TO HANDLE ALL THESE PROBLEMS IS TO VEER TO THE RIGHT ESPECIALLY ON THE CRITICAL HEALTH CARE MEASURE THIS WAS BEST ARTICULATED BY FORMER REPUBLICAN REP VIN WEBER IN THIS PAPER LAST MONTH WHEN HE ARGUED THAT CLINTON SHOULD GOVERN WITH A NAFTATYPE COALITION OF REPUBLICANS AND MODERATE AND CONSERVATIVE DEMOCRATS VIN WEBER IS ONE OF THE BRIGHTEST PEOPLE IN AMERICAN POLITICS HE'S ALSO A COMMITTED CONSERVATIVE REPUBLICAN WHAT HE'S REALLY SAYING TO BILL CLINTON IS DON'T JUMP IN THAT OLD DEMOCRATIC BRIAR PATCH COME OVER HERE TO SAFER GROUND BUT THE DEMOCRATIC PARTY'S BASE IS SOMEWHAT TO THE LEFT OF CENTER OF THE COUNTRY AND AS THE LATE ALAN BARON WAS FOND OF SAYING A SUCCESSFUL POLITICIAN ALWAYS SHOULD A KEEP HIS BASE A LITTLE ON EDGE AND B NEVER TAKE IT FOR GRANTED FOR BILL CLINTON TO FOLLOW VIN WEBER'S ADVICE WOULD BE TO EMULATE GEORGE BUSH IN 1990 AND 1991 AND PRODUCE THE SAME RESULT ON HEALTH CARE THE VEERTOTHERIGHT CROWD SAYS IT'S SIMPLE EMBRACE THE FAR MORE MODEST AND CONSERVATIVE PROPOSAL OF REP JIM COOPER D TENN THIS HAS BECOME THE RESPONSIBLE ALTERNATIVE TO THE CLINTON PROPOSAL WHICH IN ITS CURRENT FORM CLEARLY IS A NONSTARTER THE COOPER PROPOSAL HAS GOTTEN A FREE RIDE FROM THE MEDIA SO FAR WHEN THE PUBLIC DISCOVERS HOWEVER THAT IT'S THE DARLING OF THE INSURANCE INDUSTRY AND MUCH OF THE CURRENT HEALTH CARE INDUSTRY IT'S NOT GOING TO SEEM MUCH LIKE THE CHANGE THAT IS BEING DEMANDED MOREOVER THE PLAN STILL WOULD LEAVE 25 MILLION AMERICANS UNCOVERED WHICH AS SENATE MAJORITY LEADER GEORGE MITCHELL SAYS WOULD NOT BE SERIOUS AND COMPREHENSIVE HEALTH CARE REFORM THE SIMPLE FACT IS THAT BILL CLINTON LAST YEAR WAS ELECTED AS A CHANGE DEMOCRAT NOT A CONSERVATIVE DEMOCRAT NEXT YEAR THE PRESIDENT SURELY WILL MOVE TO THE RIGHT OF THE DEMOCRATIC BASE ON WELFARE REFORM HE SHOULD ACTIVELY PUSH FOR A LINEITEM VETO AND ADVOCATE SOME SERIOUS ENTITLEMENT CUTBACKS BUT ON OTHER ISSUES BOOSTING THE MINIMUM WAGE AND A JOB RETAINING PACKAGE A TASK FORCE LED BY LABOR SECRETARY ROBERT REICH AND HOUSE MAJORITY LEADER DICK GEPHARDT IS TRYING TO ASSEMBLE AN INITIATIVE HEREHE'LL END UP MORE TO THE LEFT ONE AREA WHERE THIS ADMINISTRATION SHOULD MAKE CHANGES BUT PROBABLY WON'T IS PERSONNEL ALMOST NOBODY IN WASHINGTON THINKS THE CLINTON FOREIGN POLICY TEAM HAS PERFORMED ADEQUATELY THE DOMESTIC CABINET SAVE FOR HENRY CISNEROS AND BRUCE BABBITTHAS BEEN CHEWED UP ALSO THIS YEAR THE WHITE HOUSE OPERATION IS MARKED BY CHAOS AND INDECISION TURNING 12HOUR DAYS INTO 18HOUR MARATHONS AS INTERMINABLE DELAYS BECOME STANDARD OPERATING PROCEDURE THE RESIGNATION LAST WEEK OF LOBBYIST HOWARD PASTER A MAN WHO HAD THE RESPECT OF CONGRESSIONAL FIGURES AS DIVERSE AS NEWT GINGRICH AND GEORGE MITCHELLIS A SERIOUS SETBACK THE MOST CONVENIENT VILLAIN IS CHIEF OF STAFF MACK MCLARTY BUT IT'S WRONG BILL CLINTON'S BOYHOOD FRIEND NOT ONLY IS A THOROUGHLY DECENT MAN BUT ACTUALLY HAS BEEN A BETTER AND MORE POLITICALLY ASTUTE CHIEF OF STAFF THAN MANY OF US INITIALLY ENVISIONED RATHER THIS IS A WHITE HOUSE THAT MORE THAN ANY SINCE LYNDON JOHNSON MIRRORS THE COMMANDER IN CHIEF ONE OF THE SMARTEST DEMOCRATIC HANDS IN THIS CITY IS APPALLED BY THIS PRESIDENT'S STYLE HE LACKS ANY DISCIPLINE HE HATES PLANNING OR STRATEGIC THINKING AND HE DOESN'T WANT TO BE SURROUNDED BY BRIGHT INDEPENDENTTHINKING PEOPLE YET IN THE NEXT BREATH HE ACKNOWLEDGES THAT PERHAPS WE ARE IGNORING THE EXTENT TO WHICH THE PRESIDENCY NOW IS PERSONAL PERFORMANCE AS OPPOSED TO GOVERNMENTAL OR STRATEGIC LEADERSHIP ALSO IT MAY BE CONSIDERING THE MIDEAST PEACE PROSPECTS AND THE AIRLINE STRIKE SETTLEMENT THAT BILL CLINTON IS A POLITICIAN BLESSED WITH LUCK HE'LL NEED IT IN 1994 IN MY NOV 18 COLUMN THROUGH A TRANSMISSION ERROR IT WAS MISTAKENLY REPORTED THAT SEN JOHN CHAFEE PROPOSES TO BAN OWNERSHIP OF ALL GUNS HE ONLY PROPOSES TO PROHIBIT OWNERSHIP OF MOST HANDGUNS BILL CLINTON'S RATINGS OVER THE PAST NINE MONTHS SEE RELATED LETTER LETTERS TO THE EDITOR HE WAS REALLY GEORGE WEARING A HARRY MASK WSJ DEC 29 1993 9312020065 YY93 MM12 9312290153 931229 PARALLEL PETROLEUM CORP MIDLAND TEXAS PARALLEL PETROLEUM CORP SAID ITS THIRD CANYON REEF DISCOVERY WELL THE SCHUELKE 281 FLOWED AT A CALCULATED RATE OF 765 BARRELS OF OIL AND 1750000 CUBIC FEET OF NATURAL GAS A DAY ON A 20/64INCH OPENING THE WELL IS NOW PRODUCING ABOUT 170 BARRELS OF OIL A DAY PLUS ASSOCIATED NATURAL GAS ESTIMATED AT 500000 CUBIC FEET A DAY A COMPANY SPOKESMAN SAID THE OIL AND NATURAL GAS COMPANY OWNS A 60 WORKING INTEREST IN THE WELL WHICH IS IN THE HORSESHOE ATOLL AREA OF HOWARD COUNTY TEXAS FIVE CLOSELY HELD COMPANIES SHARE A 40 WORKING INTEREST 9312290152 931213 LETTERS TO THE EDITOR WARNING TO BIG FISH EXAMINE BAIT CLOSELY YOUR READERS SHOULD NOT BE MISLED INTO THINKING THE PICTURE OF THE NEW LEGAL PROFESSION YOU PRINTED NOV 12 THE BUSINESS OF LAW IS ALL POSITIVE IT MAY BE TRUE THAT SOME FIRMS USE SMALLNESS AS THEIR BAIT TO REEL IN BIG FISH BUT BEFORE EAGER CLIENTS END UP ON THE DINNER PLATES OF THESE UPSTART SMALL FIRMS LURED IN BY THE USE OF LEGAL TEMPS THEY MIGHT WONDER WHETHER THEY AREN'T SUCCUMBING TO THE TEMPTATION TO EXALT ECONOMY OVER MORE IMPORTANT CONSIDERATIONS WHILE THERE CERTAINLY ARE APPROPRIATE SITUATIONS FOR THE USE OF CADRES OF TEMPORARY LAWYERS THE FACT THAT THESE LAWYERS ARE NOT PART OF AN EXISTING TEAM HAVE RECEIVED TRAINING OF A UNKNOWN QUALITY AND HAVE NO FIRM LOYALTY ALL DIMINISH THE FINAL WORK PRODUCT TO AN UNKNOWN EXTENT IF THE CELEBRATED FIRM OF FOUR PARTNERS AND 20 OR 30 TEMPORARY ASSOCIATES BECOMES A MAJOR TREND IT WILL AFFECT THE PROFESSION AS WELL AS OUR CLIENTS ONE HAS A HARD TIME IMAGINING THIS NEW LEAN APPROACH TO STAFFING WILL PROVIDE ANYTHING MEANINGFUL IN TERMS OF FREE LEGAL SERVICES TO THE INDIGENT UNPOPULAR CAUSES OR THE COMMUNITY ONE OF THE GREAT BENEFITS TO AMERICAN SOCIETY IS THE EXTRAORDINARY COMMITMENT TRADITIONAL FIRMS HAVE BEEN ABLE TO MAKE TO PRO BONO PUBLICO WORK WE WILL WAIT A LONG TIME TO READ ABOUT THE UPSTART FIRM THAT HIRED TEMPS TO WORK ON PRO BONO MATTERS SEE RELATED LETTER LETTERS TO THE EDITOR TEMPORARY LAWYERS A STRATEGIC ASSET WSJ DEC 29 1993 9312130079 YY93 MM12 9312290151 931229 TRAVEL PRICECUTTING AIRLINE DOES NOFRILLS HULA BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL HONOLULU SOON AFTER VICTOR WEEKS HEARD THAT A NEW LOCAL AIRLINE HERE WAS OFFERING TICKETS TO OTHER ISLANDS AT ALMOST HALF THE REGULAR COST HE CALLED TO RESERVE A 25 SEAT BY THEN MAHALO AIR INC HAD CUT ITS INAUGURAL PRICE TO 10 WHILE ONE OF MAHALO'S COMPETITORS ALSO DUPLICATED THE 10 FARE MR WEEKS WALKED AWAY WITH A HANDFUL OF MAHALO TICKETS I WANTED TO SUPPORT THEM HE SAYS A SAVAGE FARE WAR SET OFF BY MAHALO ECHOES PRICECUTTING ACROSS THE COUNTRY AS TINY AIRLINES TAKE ON GOLIATHS BUT HAWAII OFFERS A PARTICULARLY TOUGH TEST OF THE FRUGALFLIER APPROACH PERFECTED BY SOUTHWEST AIRLINES AND UTAHBASED MORRIS AIR WHICH SOUTHWEST RECENTLY AGREED TO ACQUIRE EVEN ALOHA AIRLINES LONG THE ISLANDS' HEALTHIEST CARRIER POSTED A LOSS LAST YEAR BECAUSE OF HURRICANE INIKI TO DO WHAT SOUTHWEST DID IS VERY DIFFICULT THE GRAVEYARD IS REPLETE WITH CARRIERS WHO TRIED AND FAILED SAYS KEVIN C MURPHY AN AIRLINE ANALYST AT MORGAN STANLEY THE ODDS DO NOT FAVOR A NEW ENTRANT TENDOLLAR FARES ARE NOT THE STUFF OF A GOOD BOTTOM LINE OR SOUND MANAGEMENT THE FARE WARS CONTINUE TWO MONTHS AFTER MAHALO'S FIRST FLIGHT IN OCTOBER WITH ALOHA RECENTLY MATCHING MAHALO'S 30 HOLIDAYSEASON PRICE CONSUMERS HAVE CHEERED THE CHEAP SEATS BUT THE STATE'S AIRLINES AND GOVERNMENT OFFICIALS SAY THE LOCAL MARKET IS TURBULENT ENOUGH WITHOUT A PRICE WAR MAHALO FLIES INTO A MARKET DEPRESSED BY A STEEP DROP IN TOURISM THAT HAS DRIVEN HAL INC OWNER OF HAWAIIAN AIRLINES INTO BANKRUPTCY COURT FORCED ALOHA AND HAWAIIAN TO TRIM SEATS AND INSPIRED THE STATE TO ASK CONGRESS TO LET IT REREGULATE AIR TRAVEL MAHALO'S FOUNDERS HAVE SPENT TOO MUCH TIME IN THE SUN SAYS A MAURICE MYERS ALOHA'S PRESIDENT AND CHIEF EXECUTIVE OFFICER IT'S QUESTIONABLE WHETHER TWO CARRIERS CAN MAKE IT HERE A THIRD IS LUDICROUS BUT MAHALO SAYS IT CAN STRETCH THE SHRINKING LOCAL MARKET LONG DOMINATED BY HAWAIIAN AND ALOHA BY EMULATING THE MAINLAND SUCCESS OF SOUTHWEST MAHALO'S FRILLS HAVE BEEN FEW INDEED ITS FIRST PASSENGERS FACED DELAYS SPOTTY AIR CONDITIONING AND CRAMPED TURBOPROP PLANES NONETHELESS ITS FIRST MONTH OF FLIGHTS SOLD OUT IN FOUR DAYS MAHALO TAKES 40 MINUTES TO FLY FROM HONOLULU TO MAUI OR ABOUT 10 MINUTES LONGER THAN ITS JET RIVALS HAWAII'S NEWEST AIRLINE IS THE BRAINCHILD OF ROBERT N IWAMOTO JR PRESIDENT OF ROBERTS HAWAII A BIG HAWAIIAN TRAVEL OPERATOR THAT TAKES TOURISTS AROUND THE ISLANDS IN BUSES VANS AND BOATS IT ALSO BOOKS 400000 INTERISLAND AIRLINE SEATS A YEAR MAKING IT ONE OF ALOHA'S LARGEST CLIENTS MR IWAMOTO WAS PREVIOUSLY INVOLVED IN A CARGO VENTURE CALLED HAWAII PACIFIC AIR CARGO INC WHICH FLEW TWO WORLD WAR IIERA DC4S BUT FOLDED IN 1992 AFTER SIX MONTHS IN THE AIR MAHALO'S FOUNDERS FIGURE THAT HAWAIIANS WHO LACK FERRIES OR OTHER ALTERNATIVES TO AIR TRANSPORTATION WILL GO ISLANDHOPPING MORE OFTEN TO VISIT FRIENDS AND RELATIVES IF AIR FARES COME DOWN MICHAEL NEKOBA MAHALO'S CHIEF EXECUTIVE CALCULATES THAT MAHALO CAN BITE INTO 10 OF THE LOCAL MARKET AND TURN A PROFIT ON A 30 ONEWAY FARE A THIRD OFF ITS RIVALS' DISCOUNTED PRICES MR NEKOBA A FORMER PRINCIPAL AT A LOCAL ACCOUNTING FIRM OWNS A 10 STAKE IN MAHALO THANK YOU IN THE HAWAIIAN TONGUE MAHALO INDEED MANY LOCALS SAY IT'S KIND OF ADVENTUROUS SAYS MR WEEKS OF THE AIRLINE'S SCRAPPYBUTFRIENDLY AMBIANCE COMPARED WITH WHAT HE CALLS THE CORPORATE FEEL OF HAWAIIAN AND ALOHA THE TWO LONGESTABLISHED CARRIERS ARE CONSIDERABLY LESS KIND WE ARE ALL SUBJECT TO OUR DUMBEST COMPETITOR SAYS BRUCE NOBLES PRESIDENT AND CHIEF EXECUTIVE OF HAL WHO MAKES IT A POINT TO SAY THAT HIS COMPANY NEVER MATCHES MAHALO'S FARES BUT DOES SOMETIMES MATCH ALOHA'S FARES WHEN ALOHA MATCHES MAHALO'S IT WAS A QUESTION OF US LOSING SOME MONEY OR MORE MONEY I CHOSE TO LOSE THE LEAST ALOHA WHICH VOWS TO STAY COMPETITIVE WITH MAHALO HAS FILED FORMAL OBJECTIONS TO THE NEW CARRIER'S APPLICATION WITH THE FEDERAL AVIATION ADMINISTRATION QUESTIONING WHETHER MAHALO'S PLANES 23YEAROLD 50PASSENGER FOKKER F27 TURBOPROPS COULD SURVIVE DITCHING AT SEA IN THE FILING ALOHA ALSO QUESTIONS WHETHER THE COMPANY MIGHT SOON FAIL LEAVING ONLY A TRAIL OF WORTHLESS TICKETS BUT EVEN IF MAHALO SURMOUNTS THESE CHALLENGES AS IT SAYS IT WILL INDUSTRYWATCHERS SAY TURBOPROPS HAVE A HARD TIME COMPETING AGAINST JETS FOR CUSTOMERS EVEN WITH LOWER FARES MAHALO IS CERTAINLY A SHOESTRING COMPANY TODAY ITS AIRPLANES ARE LEASED FROM AND OPERATED BY EMPIRE AIRLINES AN IDAHOBASED CARGO AND CHARTER COMPANY AND MAHALO'S SMALL OFFICES ARE IN A SECONDSTORY WALKUP BEHIND THE AIRPORT HERE IT TRAINS ITS PILOTS TO HANDLE LUGGAGE AND REMOVES ITS FOKKERS' SEATS AFTER THE LAST DAILY RUN TO ALLOW FOR CARGO FLIGHTS BUT MR NEKOBA SAYS THE CARRIER WHICH HAS 55 MILLION IN CAPITAL EXPECTS TO WIN FAA CERTIFICATION TO OPERATE ON ITS OWN IN THE FIRST QUARTER OF 1994 AND WILL ADD ADDITIONAL CRAFT TO ITS FLEET MAHALO HAS ALREADY PUT ITS STAMP ON ITS FOKKERS LIKENESSES OF LOCAL ENDANGERED ANIMAL SPECIES BEDECK THE TAILS OF EACH GREENANDYELLOW PLANE IN HAWAII AIRLINES THEMSELVES PARTICULARLY THIRD CARRIERS OFTEN RESEMBLE ENDANGERED SPECIES MID PACIFIC AIR WENT TO BANKRUPTCY COURT IN 1988 AFTER SEVEN YEARS AS A LOWBUDGET CARRIER TWO YEARS LATER ANOTHER AIRLINE DISCOVERY AIR FAILED AFTER A FEW MONTHS OF FINANCING PROBLEMS AND PROBLEMS WITH ITS FOREIGN OWNERS NOW WITH HAL TEETERING THE STATE WANTS TO REREGULATE THE LOCAL MARKET BY SETTING RATES AND ROUTES AND CONGRESS IS CONSIDERING A BILL THAT WOULD GRANT HAWAII AN EXEMPTION TO FEDERAL DEREGULATION BUT WASHINGTON'S POLITICAL WINDS SEEM TO BE BLOWING MAHALO'S WAY SECRETARY OF TRANSPORTATION FEDERICO PENA OPPOSES THE PROPOSAL MR PENA HAS SAID THAT GIVING HAWAII AN EXEMPTION WOULD BE BAD PRECEDENT THAT COULD TURN THE COUNTRY INTO A PATCHWORK OF LOCAL REREGULATION DRIVING FARES UP AND CREATING BARRIERS TO NEW ENTRANTS AND A TRANSPORTATION DEPARTMENT STUDY FOUND THAT THE TOP FIVE AIRPORTS IN THE STATE CAN EASILY SUSTAIN TWO THREE OR MORE CERTIFICATED COMPETITORS STILL MR IWAMOTO WHO OWNS A 65 STAKE IN MAHALO SAYS HE UNDERSTANDS HIS RIVALS' IRE THE EXECUTIVE WHOSE BUSINESS CARD FEATURES A WINKING WAVING RABBIT WEARING A LEI SAYS YOU CAN'T BLAME THEM FOR COMPLAINING ABOUT US 9312290149 931229 DELTA BEGINS PHONE INSTALLATION ATLANTA GTE CORP SAID ATLANTABASED DELTA AIR LINES HAS BEGUN INSTALLATION OF THE GENSTAR SYSTEM GTE AIRFONE'S DIGITALTELECOMMUNICATIONS SYSTEM FOR AIRLINE PASSENGERS THE COMPANIES SAID THE SYSTEM WILL PROVIDE CLEAR STATICFREE TELEPHONE CALLS FROM PASSENGER SEATS AND THAT IT WILL SOON FEATURE GROUNDTOAIR CALLS DATA AND FAX TRANSMISSION AND SEATTOSEAT CALLS INSTALLATION BEGAN THIS MONTH ON THE DELTA SHUTTLE WHICH FLIES TO BOSTON NEW YORK AND WASHINGTON DC DELTA SAID IT WILL EQUIP ITS ENTIRE DOMESTIC FLEET WITH THE SYSTEM DURING 1994 GTE AIRFONE IS BASED IN OAKBROOK ILL 9312290148 931229 MARKETING & MEDIA QUAKER OATS GENERAL MILLS CHICAGO QUAKER OATS CO AND GENERAL MILLS INC SETTLED A DISPUTE OVER ADVERTISING CLAIMS FOR THEIR RIVAL CHEWY GRANOLA BARS UNDER THE COURTAPPROVED AGREEMENT MINNEAPOLISBASED GENERAL MILLS WILL BE ALLOWED TO CONTINUE TO SHIP A LIMITED NUMBER OF CASES OF ITS NEW NATURE VALLEY LOW FAT CHEWY BAR AND THEREAFTER WILL CONSIDER NEW PACKAGING FOR THE PRODUCT SPOKESMEN FOR BOTH COMPANIES SAID THE AGREEMENT PREVENTED THEM FROM ELABORATING ON IT CHICAGOBASED QUAKER HAD OBTAINED A TEMPORARY RESTRAINING ORDER FROM AN ILLINOIS COUNTY CIRCUIT COURT HALTING DISTRIBUTION OF GENERAL MILLS'S BARS WHICH QUAKER SAID CAME IN PACKAGING THAT OVERSTATED THE AMOUNT OF FAT IN SOME OF ITS GRANOLA BARS 9312290147 931229 TRANS FINANCIAL TO BUY PEOPLES BOWLING GREEN KY TRANS FINANCIAL BANCORP INC SAID IT ENTERED A DEFINITIVE AGREEMENT TO ACQUIRE PEOPLES FINANCIAL SERVICES INC IN A STOCK SWAP VALUED AT 21 MILLION UNDER TERMS OF THE AGREEMENT PEOPLES FINANCIAL SHAREHOLDERS WILL RECEIVE 550 SHARES OF TRANS FINANCIAL STOCK FOR EACH SHARE OF PEOPLES FINANCIAL STOCK TRANS FINANCIAL SAID THE 21 MILLION VALUE IS BASED ON THURSDAY'S CLOSING PRICE OF 16 AND APPROXIMATELY 1315770 ISSUED TRANS FINANCIAL SHARES TRANS FINANCIAL BANCORP SERVES KENTUCKY AND TENNESSEE AND WILL HAVE ABOUT 15 BILLION IN ASSETS AFTER THE ACQUISITION PEOPLES FINANCIAL SERVICES BASED IN COOKEVILLE TENN IS THE 120 MILLION ASSET TWOBANK HOLDING COMPANY FOR PEOPLES BANK & TRUST OF THE CUMBERLANDS AND CITIZENS FEDERAL SAVINGS BANK 9312290146 931229 WHAT'S NEWS WORLDWIDE THE US SHOULD COMPENSATE RADIATION TEST VICTIMS A TOP OFFICIAL SAID ENERGY SECRETARY O'LEARY SAID PEOPLE WHO WRONGFULLY WERE EXPOSED TO RADIATION THROUGH FEDERALLY FUNDED EXPERIMENTS MORE THAN 40 YEARS AGO DESERVE TO BE COMPENSATED SHE PROMISED TO COLLECT AS MANY GOVERNMENT DOCUMENTS AS POSSIBLE ON SUCH EXPERIMENTS AND LET CONGRESS AND THE PUBLIC DETERMINE WHAT WOULD BE APPROPRIATE COMPENSATION O'LEARY EARLIER THIS MONTH SAID AS MANY AS 800 PEOPLE MIGHT HAVE BEEN SUBJECTED TO EXPERIMENTS INVOLVING RADIATION MANY IN THE 1940S AND '50S SOME OF THE EXPERIMENTS WERE BELIEVED TO BE WITHIN MEDICAL GUIDELINES AND WITH CONSENT BUT OTHERS CLEARLY WEREN'T OFFICIALS HAVE SAID LOUISIANA MUST REDRAW ITS CONGRESSIONAL DISTRICTS BECAUSE THEY WERE MADE TO GUARANTEE THE ELECTION OF TWO BLACK REPRESENTATIVES A THREEJUDGE FEDERAL PANEL RULED THE PANEL DIDN'T INVALIDATE THE 1992 ELECTION WHICH GAVE THE STATE TWO BLACK CONGRESSMEN BUT THE RULING SAID THE DISTRICTS MUST BE REDRAWN BEFORE THE 1994 ELECTIONS EGYPT TOOK PART IN A LENGTHY MEETING BETWEEN ISRAELI AND PLO NEGOTIATORS TRYING TO SOLVE DISPUTES DELAYING A PROMISED ISRAELI PULLOUT FROM THE GAZA AND JERICHO A SOURCE CLOSE TO THE CAIRO TALKS SAID THE EGYPTIAN AND ISRAELI FOREIGN MINISTERS WERE CLOSETED IN A HOTEL ROOM WITH THEIR DELEGATIONS PORING OVER MAPS OF THE WEST BANK AND GAZA SECRETARY OF STATE CHRISTOPHER SELECTED STROBE TALBOTT A FRIEND OF THE PRESIDENT AND ARCHITECT OF THE ADMINISTRATION'S RUSSIAN POLICY FOR THE NO 2 POST AT THE STATE DEPARTMENT TALBOTT WILL CONTINUE AS CHIEF US POLICYMAKER ON RUSSIA WHILE TAKING ON OTHER BROADER ASSIGNMENTS A TEXAS JUDGE REJECTED MOST OF THE ETHICS CHARGES AGAINST REPUBLICAN US SEN KAY BAILEY HUTCHISON AND GAVE PROSECUTORS 10 DAYS TO MAKE THE INDICTMENTS MORE SPECIFIC BUT THE JUDGE LET STAND THE MOST SERIOUS CHARGE WHICH ALLEGED HUTCHISON USED STATE EMPLOYEES AND EQUIPMENT FOR POLITICAL PURPOSES WHILE SHE WAS STATE TREASURER CALIFORNIA'S GROWTH WAS SLOWER THAN THE NATION'S AS A WHOLE FOR THE FIRST TIME IN TWO DECADES THE CENSUS BUREAU SAID THE STATE'S POPULATION GREW BY 1 IN THE YEAR ENDED JULY 1 TO 312 MILLION WITH IMMIGRANTS ACCOUNTING FOR 95 OF THE GROWTH THE OVERALL US POPULATION INCREASED BY 11 IN THE SAME PERIOD HUNDREDS OF BOSNIANS WERE EVACUATED BY BUS FROM SERBBESIEGED SARAJEVO AND REACHED THE NEARBY SERBHELD DISTRICT OF LUKAVICA ON THEIR WAY TO SAFETY IN CROATIA OR SERBIA THE EVACUEES INCLUDED ELDERLY OR WOUNDED RESIDENTS AND WOMEN WITH CHILDREN SEVERAL PREVIOUS PLANNED DEPARTURES WERE BLOCKED BY FIGHTING AND BUREAUCRACY BULGARIA ORDERED RUSSIAN ULTRANATIONALIST LEADER ZHIRINOVSKY TO LEAVE WITHIN 24 HOURS FOR INSULTING PRESIDENT ZHELEV OVER THE WEEKEND ZHIRINOVSKY OFFENDED MANY BULGARIANS BY CALLING FOR THE RESIGNATION OF THEIR FIRST DEMOCRATICALLY ELECTED PRESIDENT AND INTRODUCING A BULGARIAN BUSINESSMAN AS THE NATION'S FUTURE LEADER SUSPECTED CHRISTIAN MILITANTS FIRED GRENADES AT TWO MOSQUES AND GUNMEN KIDNAPPED AN AMERICAN AS VIOLENCE AGAIN ROCKED THE PHILIPPINE CITY OF DAVAO THE MOSQUE ATTACKS APPARENTLY WERE IN REPRISAL FOR A BOMBING THAT KILLED SEVEN AT A CATHEDRAL SUNDAY A SENATOR WARNED OF REIGNITION OF MUSLIMCHRISTIAN CLASHES OF THE 1970S AN ASSASSINATION ATTEMPT FAILED AGAINST SADDAM HUSSEIN BUT THE SEPT 24 BOMBING ATTACK HAS SHAKEN HIS REGIME BECAUSE OF SUSPICIONS THAT SOME OF THE IRAQI LEADER'S CLOSEST ASSOCIATES WERE INVOLVED ACCORDING TO DIPLOMATS AND ARAB BUSINESSMEN SOUTH KOREA HAS SPENT ONLY 15 OF THE 4 BILLION BUDGETED FOR MILITARY PROCUREMENT THIS YEAR AS OFFICIALS RECOIL FROM A PROBE THAT FOUND WIDESPREAD CORRUPTION IN ARMS PURCHASES CONTRACTS FOR NEW PROJECTS HAVE BEEN PUT ON HOLD SUSPECTED MAOIST GUERRILLAS DROVE CAR BOMBS INTO THE LIMA HEADQUARTERS OF THE ANTITERRORIST POLICE AND DETONATED A BOMB IN FRONT OF A MILITARY FUNERAL HOME KILLING TWO AND INJURING 27 IN PERU'S CAPITAL SIXTY SAUDI MEN WERE SWORN IN AS MEMBERS OF THE NATION'S FIRST REPRESENTATIVE ASSEMBLY SINCE THE SAUDI STATE WAS FORMED AND KING FAHD TOLD THE GROUP THEY WOULD HAVE HIS FULL SUPPORT 9312290145 931229 WHO'S NEWS WABASH NATIONAL CORP WABASH NATIONAL CORP LAFAYETTE IND LUDVIK F KOCI PRESIDENT AND CHIEF EXECUTIVE OFFICER OF DETROIT DIESEL CORP WAS ELECTED A DIRECTOR OF THIS MAKER OF TRUCK TRAILERS BOOSTING BOARD MEMBERSHIP TO SIX 9312290144 931229 WHO'S NEWS FEDERAL HOME LOAN BANK OF NEW YORK FEDERAL HOME LOAN BANK OF NEW YORK NEW YORK THIS REGIONAL WHOLESALE BANKING CONCERN NAMED TWO ASSISTANT VICE PRESIDENTS AS VICE PRESIDENTS KEVIN BERGER 35 YEARS OLD TREASURY OPERATIONS AND ANTHONY GRIMMER 49 FINANCIAL OPERATIONS 9312290143 931229 WHO'S NEWS QVC NETWORK INC QVC NETWORK INC WEST CHESTER PA WILLIAM SCHERECK 47 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT INTERNATIONAL A NEW POSITION AT THE ELECTRONIC RETAILING CONCERN MR SCHERECK WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT OF BROADCAST OPERATIONS AND ENGINEERING 9312290141 931229 UNION PACIFIC RAILROAD SPENDING OMAHA NEB UNION PACIFIC RAILROAD SAID IT WILL SPEND 743 MILLION ON CAPITAL IMPROVEMENTS IN 1994 TO EXPAND ITS CARRYING CAPACITY AND IMPROVE ITS TRACKS AND FACILITIES THE RAILROAD UNIT OF UNION PACIFIC CORP SAID THE 1994 BUDGET INCLUDES 369 MILLION FOR TRACK WORK 75 MILLION FOR LOCOMOTIVES AND FUNDS FOR EXPANDING FACILITIES IN MEMPHIS TENN STOCKTON CALIF AND SEATTLE UNION PACIFIC SPENT 805 MILLION ON CAPITAL IMPROVEMENTS IN 1993 9312290140 931229 TREASURY SURVEY SEEKS TO MEASURE INVESTMENT ABROAD BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE TREASURY DEPARTMENT IS CONDUCTING A SURVEY ON FOREIGN LONGTERM SECURITIES OWNED BY US PERSONS FOR PORTFOLIO INVESTMENT PURPOSES THE TREASURY SAID THE MANDATORY SURVEY IS THE FIRST COMPREHENSIVE ATTEMPT SINCE MAY 1943 TO EVALUATE US LONGTERM PORTFOLIO INVESTMENT ABROAD THE SURVEY WHICH IS EXPECTED TO AFFECT MAINLY LARGE INVESTORS WILL TRY TO DETERMINE THE SIZE AGGREGATE MARKET VALUE AND CHARACTER OF THESE SECURITIES THE DATA COLLECTED IN THE SURVEY WILL BE USED TO IMPROVE THE MEASUREMENT OF OFFICIAL BALANCE OF PAYMENTS AND NATIONAL INCOME ACCOUNTS AND THE INTERNATIONAL INVESTMENT POSITION OF THE UNITED STATES THE DEPARTMENT SAID DETAILS ON THE SURVEY WERE ANNOUNCED IN THE FEDERAL REGISTER YESTERDAY THE TREASURY SAID THAT PERSONS WHO MEET THE REPORTING REQUIREMENTS SPELLED OUT IN THE FILING AND WHO FAIL TO COMPLY WITH THE SURVEY MAY BE SUBJECT TO CIVIL AND/OR CRIMINAL PENALTIES FOR THE PURPOSES OF THIS SURVEY FOREIGN LONGTERM SECURITIES INCLUDE ALL FOREIGN EQUITIES INCLUDING SUBSCRIPTION RIGHTS AND WARRANTS AND ALL FOREIGN DEBT SECURITIES WHOSE TERMTOMATURITY FROM DATE OF ISSUE IS MORE THAN ONE YEAR THE TREASURY SAID IT INCLUDES SECURITIES ISSUED BY INTERNATIONAL ORGANIZATIONS SUCH AS THE WORLD BANK AND INTERAMERICAN DEVELOPMENT BANK US PERSONS COVERED BY THE REPORTING REQUIREMENT INCLUDE INDIVIDUALS PARTNERSHIPS ESTATES TRUSTS CORPORATIONS FINANCIAL INSTITUTIONS AND STATE AND LOCAL GOVERNMENTS THE TREASURY'S ANNOUNCEMENT IDENTIFIED THOSE WHO MUST REPORT AS ALL US PERSONS WHO MANAGE THE CUSTODY OR SAFEKEEPING OF FOREIGN LONGTERM SECURITIES FOR THEMSELVES AND/OR ON BEHALF OF OTHER US PERSONS IF THE TOTAL MARKET VALUE OF THESE SECURITIES AGGREGATED OVER ALL ACCOUNTS IS AT LEAST 20 MILLION ON AN ACTUAL SETTLEMENTDATE BASIS AS OF MARCH 31 1994 ALL US PERSONS WHO OWN FOREIGN LONGTERM SECURITIES AND/OR WHO HAVE THE AUTHORITY TO PURCHASE OR SELL THESE TYPES OF SECURITIES ON BEHALF OF OTHER US PERSONS IF THE TOTAL MARKET VALUE OF OWNED SECURITIES AGGREGATED OVER ALL US FUNDS UNDER THEIR MANAGEMENT IS AT LEAST 5 MILLION ON AN ACTUAL SETTLEMENTDATE BASIS AS OF MARCH 31 1994 ANY OTHER US PERSONS WHO RECEIVED A SET OF SURVEY FORMS AND INSTRUCTIONS MILTON PAPPAS THE TREASURY OFFICIAL IN CHARGE OF THE SURVEY SAID THE DEPARTMENT IS SENDING ABOUT 2500 SURVEY FORMS TO SELECTED RECIPIENTS INCLUDING FINANCIAL INSTITUTIONS AND BROKERDEALERS HE SAID A REPORT ON THE SURVEY'S FINDINGS IS EXPECTED IN 1995 HE SAID THE DOLLAR THRESHOLDS IN THE NOTICE REFLECT THE EXPECTATION THAT US HOLDERS OF FOREIGN SECURITIES ARE MOSTLY BIG PLAYERS IN FINANCIAL MARKETS BUT HE ADDED THAT SOME PERSONS BELOW THOSE THRESHOLDS WILL BE SURVEYED TREASURY SAID US PERSONS WHO MEET THE REPORTING REQUIREMENTS BUT WHO DON'T RECEIVE A SET OF SURVEY FORMS AND INSTRUCTIONS SHOULD CONTACT THE TREASURY AT 202 6222240 TO OBTAIN A COPY THE DEPARTMENT SAID ALL REPORTS INCLUDING APPLICATIONS TO FILE FOR AN EXEMPTION TO THE REPORTING REQUIREMENT MUST BE MAILED BY JUNE 30 9312290139 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 9312290136 931229 WHO'S NEWS DATA TRANSMISSION NETWORK CORP DATA TRANSMISSION NETWORK CORP OMAHA NEB GREG T SLOMA 42 YEARS OLD AND FORMERLY EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS INFORMATION AND COMMUNICATIONS SERVICES CONCERN WAS NAMED TO THE NEW POST OF CHIEF OPERATING OFFICER STEVE C BALL THE COMPANY'S 35YEAROLD SECRETARY TREASURER AND CONTROLLER WAS NAMED TO SUCCEED MR SLOMA IN THE CHIEF FINANCIAL OFFICER POST HE RETAINS HIS OTHER TITLES ROGER BRODERSON 48 REMAINS PRESIDENT AND CHIEF EXECUTIVE OFFICER 9312290135 931229 TEXAS JOURNAL OIL PATCH QUANDARY WHAT'S LEFT TO CUT BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL THE TEXAS OIL PATCH IS TIGHTENING ITS BELT AGAIN AND IT HURTS DURING THE 1980S OIL BUST OIL PRODUCERS AND DRILLING CONTRACTORS CUT OVERHEAD TO THE BONE OR THEY WENT OUT OF BUSINESS BUT NOW THAT OIL PRICES HAVE PLUMMETED AGAIN THE SURVIVORS OF THE BUST ARE HAVING A HARD TIME FINDING ANY MORE FAT TO CUT YOU CAN'T JUST TELL THE BANK YOU'LL SELL THE COMPANY PLANE THE CONDO IN HAWAII THE RACEHORSES AND THE ARTWORK LAMENTS STEVE LAYTON CHIEF OPERATING OFFICER OF EQUINOX OIL CO IN THE WOODLANDS WE DON'T HAVE THOSE THINGS ANYMORE WE DO HAVE AN ORIENTAL RUG IN OUR LOBBY BUT IT CAME FROM SAM'S HERE'S A SNAPSHOT OF HOW OILRELATED BUSINESSES ACROSS THE STATE ARE COPING WITH THE LATEST DOWNTURN PARING PAY ONE WEDNESDAY EARLIER THIS MONTH DUB HALE CALLED HIS FOURPERSON STAFF TOGETHER FOR A GRIM MESSAGE EFFECTIVE IMMEDIATELY EVERYONE WOULD HAVE HIS OR HER SALARY CUT BY ABOUT 25 TWO OF THE WOMEN CRIED I'M AFRAID MY NEXT DECISION WILL HAVE TO BE TO BEGIN CUTTING PEOPLE SAYS MR HALE OWNER OF HALE OIL & GAS PROPERTIES INC A TINY COMPANY IN GRAHAM CONSIDERING HIS EMPLOYEES HADN'T HAD ANY RAISES SINCE THE LAST OIL BUST THE PAY CUTS WERE SEVERE BUT IT'S HARD TO BLAME THE BOSS I TOOK MYSELF OFF THE PAYROLL AND AM LIVING OFF MY PERSONAL INCOME FROM INVESTMENTS SAYS MR HALE THE DECISION TO SNIP THOUSANDS OFF THE PAYROLL WAS PART OF AN OVERALL REDUCTION IN OFFICE OVERHEAD AT HALE OIL TO 16000 A MONTH FROM 24000 A CUTBACK THAT INCLUDED CANCELING MAGAZINE SUBSCRIPTIONS AND WATCHING EVERY PHONE CALL HALE OIL'S STRATEGY TO KEEP ITS SIX OIL WELLS OPERATING AS LONG AS POSSIBLE AND PRAY THE PRICE OF ITS STAPLE COMMODITY WILL RECOVER IF IT'S BROKE DON'T FIX IT IF DEAS H WARLEY LEARNED ONE THING DURING THE 1986 BUST IT WAS THAT PLUGGING UP UNPROFITABLE WELLS OFTEN REPRESENTS A SHORTTERM GAIN AND A LONGTERM LOSS IF YOU SHUT A WELL FOR SIX MONTHS WHILE PRICES RECOVER YOU MIGHT SAVE 600 BUT BRINGING BACK PRODUCTION COSTS YOU 1500 TO 1600 SAYS MR WARLEY CHAIRMAN OF MIDLAND RESOURCES INC IN MIDLAND IT'S LIKE A CAR IF YOU LEAVE IT IN THE GARAGE FOR MONTHS IT DOES MORE DAMAGE THAN IF YOU DRIVE IT EVERY DAY SOUNDS GREAT IN THEORY BUT WHEN LOOKING FOR WAYS TO CUT COSTS MR WARLEY SOMETIMES DOESN'T SEE AN ALTERNATIVE TO SHUTTING PRODUCTION ONE WELL FOR EXAMPLE REQUIRED A 1500 REPAIR BUT WASN'T MAKING ANY MONEY AT THE CURRENT PRICE OF ABOUT 12 A BARREL OIL FUTURES ARE SELLING FOR ABOUT 14 A BARREL BUT PRODUCERS TYPICALLY GET ABOUT 2 LESS THAT WELL ALONG WITH A DOZEN OTHER UNPROFITABLE ONES HAS BEEN SHUT ALTHOUGH THE COMPANY WILL PUMP SOME OF THEM ONE OR TWO DAYS A MONTH TO TRY TO PREVENT DAMAGE OR EXPIRATION OF LEASES IT'S ALL PART OF AN OVERALL STRATEGY TO CUT OUTSIDE LABOR FOR REPAIRS AND MAINTENANCE SOME REPAIRS HAVE BEEN POSTPONED INDEFINITELY OTHERS ARE BEING DONE BY MIDLAND ITSELF SO IT CAN AVOID PAYING SOMEONE ELSE IF NECESSARY MR WARLEY WILL TAKE A TOOL BOX AND DO IT HIMSELF THERE'S NOTHING SACRED ABOUT MY FINGERNAILS HE SAYS NO NEW DRILLING THIS IS THE TIME WHEN EVEN FASTGROWING COMPANIES SUCH AS EQUINOX START LOOKING HARD AT DRILLING THE SAME PROSPECT THAT LOOKED GREAT A COUPLE MONTHS AGO AT 18 OIL NOW LOOKS PRETTY LOUSY EQUINOX HAS SLASHED ABOUT THREEQUARTERS OF A MILLION DOLLARS FROM ITS FOURTHQUARTER BUDGET BY POSTPONING DEVELOPMENT OF EXISTING FIELDS ALONG THE GULF COAST WE'RE ONLY DRILLING THE ONES WE HAVE TO IN CASES WHERE SOMEONE ELSE NEARBY WILL DRAIN THE RESERVOIR IF WE DON'T SAYS MR LAYTON THE CHIEF OPERATING OFFICER IF OIL PRICES STAY LOW THE COMPANY MAY ALSO NIX 2 MILLION TO 4 MILLION IN DEVELOPMENT DRILLING PLANNED FOR 1994 HE SAYS EVEN THE GIANT INDEPENDENTS SUCH AS ORYX ENERGY CO ARE SCALING BACK DEVELOPMENT DALLASBASED ORYX IS CUTTING BACK ITS WORLDWIDE EXPLORATION AND DEVELOPMENT SPENDING FROM ABOUT 35 MILLION TO 40 MILLION A MONTH TO ABOUT 15 MILLION TO 25 MILLION SAYS COMPANY PRESIDENT ROBERT L KEISER STOCKPILING WHILE SOME PRODUCERS ARE DECIDING IT ISN'T WORTH IT TO SPEND MONEY TO FIND NEW OIL JOHN BARBEE OF ABILENE HAS TAKEN THE CONCEPT ONE STEP FURTHER HE DOESN'T EVEN WANT TO SELL WHAT HE'S ALREADY PUMPED OUT OF THE GROUND I'M JUST SELLING ENOUGH TO KEEP THE LIGHTS ON SAYS MR BARBEE OWNER OF BARBEE INC WHICH OPERATES ABOUT 60 WELLS HE FIGURES AT CURRENT PRICES OF ABOUT 12 A BARREL HE'S GIVING IT AWAY FOR FREE SO HE'S RUNNING HIS OWN MINIFUTURES MARKET STORING THOUSANDS OF BARRELS OF OIL IN HIS 60 TANKS HE'S NOT PLANNING TO SELL UNTIL THE PRICES INCH UP AT LEAST A BIT HIS STORAGE CAPACITY IS NOW ABOUT 80 FULL THE LAST TIME THE TANKS WERE FILLED SO HIGH THE OIL BUST OF '86 SELLING PROPERTIES TO DRUM UP EXTRA CASH MR HALE OF HALE OIL & GAS RECENTLY SOLD ONE OF HIS BEST WELLS I GOT A GOOD PRICE FOR IT HE SAYS THAT HAS BEEN ONE SAVING GRACE SO FAR TO THE SURPRISE OF SOME PRODUCERS OIL WELLS HAVE BEEN SELLING FOR ONLY SLIGHTLY LESS THAN THEY WERE SIX MONTHS AGO IF OIL PRICES HAVE DROPPED 30 PRICES ON PROPERTIES HAVE DROPPED ONLY 15 TO 20 SAYS MR WARLEY WHO IS MULLING A GOOD OFFER HE GOT FOR SOME PROPERTIES IN OKLAHOMA WHEN OIL PRICES DROP LIKE THIS MANY PEOPLE DON'T BELIEVE IT IS GOING TO LAST LONG TELL IT TO THE BANK FOR CASHPOOR COMPANIES A SALE CAN BE TAKEN A STEP FURTHER AS A CLEVER WAY TO RAISE COLLATERAL FOR A NEW LOAN IF LOW PRICES CONTINUE INTO NEXT YEAR EQUINOX WILL CONSIDER SELLING A PORTION OF ONE OF ITS FIELDS TO RAISE CASH TO DRILL THERE SAYS MR LAYTON THEN ONCE THE FIELD IS DEVELOPED THE RESERVES OF OIL UNDERNEATH THE GROUND CAN BE USED AS COLLATERAL FOR A NEW LOAN MONEY THAT WOULD HELP TIDE IT OVER UNTIL BETTER TIMES 9312290133 931229 WHO'S NEWS VERIDIEN CORP VERIDIEN CORP ST PETERSBURG FLA FOUR DIRECTORS WERE ELECTED TO FILL VACANT SEATS ON THE BOARD OF THIS MANUFACTURER OF CHEMICAL DISINFECTANTS INCLUDING RONALD DOBBINS 58 YEARS OLD AND PRESIDENT AND CHIEF EXECUTIVE OF OMNICARE HEALTH PLAN STEVEN FELDMAN 48 A PERIODONTIST ALFRED RITTER 50 OPERATOR OF A EUROPEAN INVESTMENTMANAGEMENT COMPANY AND LOUIS SOSCIA 56 A PHYSICIAN SPECIALIZING IN OBSTETRIC AND GYNECOLOGIC CARE 9312290132 931229 UNITED DOMINION GETS FUNDS CHARLOTTE NC UNITED DOMINION INDUSTRIES LTD SAID IT RECEIVED 181 MILLION AS ITS SHARE OF THE SURPLUS FUNDS IN THE RETIREMENT PLAN OF A CANADIAN UNIT THE DEFINEDBENEFIT PENSION PLAN WAS REPLACED LAST YEAR WITH A DEFINEDCONTRIBUTION PLAN THE COMPANY SAID THE TRANSACTION WON'T AFFECT ITS REPORTED EARNINGS A SPOKESMAN SAID THE FUNDS WILL BE ADDED TO THE CASH PART OF ITS BALANCE SHEET THE COMPANY HAD 269 MILLION OF CASH ON SEPT UNITED DOMINION IS A MANUFACTURING ENGINEERING AND CONSTRUCTION COMPANY 45OWNED BY CANADIAN PACIFIC LTD MONTREAL 9312290131 931229 CORRECTIONS & AMPLIFICATIONS CLIFTON R WHARTON WAS FORCED OUT OF THE NO 2 POSITION AT THE STATE DEPARTMENT IN EARLY NOVEMBER AMID A FIRESTORM OF CRITICISM OF SECRETARY OF STATE WARREN CHRISTOPHER AND THE REST OF THE CLINTON FOREIGNPOLICY TEAM AN ARTICLE YESTERDAY INCORRECTLY SUGGESTED THAT MR WHARTON HAD BEEN THE PRIMARY TARGET OF CRITICISM UNITED FINANCIAL BANCORP INC HAS 437000 COMMON SHARES OUTSTANDING AFTER COMPLETING THE REPURCHASE OF 5 OF ITS COMMON STOCK AN ITEM YESTERDAY INCORRECTLY SAID UNITED FINANCIAL HAD 487000 SHARES OUTSTANDING 9312290129 931229 CORPORATE FOCUS CREDIT LYONNAIS'S NEW CHAIRMAN BANKS ON A REVIVAL STEPS ARE LAUNCHED TO COMBAT RISKY CREDIT VENTURES AND LOAN LOSSES BY NICHOLAS BRAY AND CHARLES FLEMING STAFF REPORTERS OF THE WALL STREET JOURNAL PARIS HERE'S AN IMAGE THAT JEAN PEYRELEVADE THE NEW CHAIRMAN OF CREDIT LYONNAIS SA WOULD LIKE TO HAVE ON HIS OFFICE WALL A LION TRAPPED IN A NET IS BEING SET FREE BY A MOUSE THAT IS GNAWING A HOLE IN THE MESHES THE SCENE IS SHOWN ON A 17THCENTURY TAPESTRY THAT MR PEYRELEVADE BOUGHT A FEW YEARS AGO FOR THE INSURANCE COMPANY WHERE HE WAS CHAIRMAN MR PEYRELEVADE NOW IS SEEKING TO BUY THE TAPESTRY FOR CREDIT LYONNAIS FRANCE'S BIGGEST COMMERCIAL BANK AND IT WOULD BE AN APPROPRIATE PURCHASE CREDIT LYONNAIS USES A LION AS ITS SYMBOL AND IF MR PEYRELEVADE SUCCEEDS IN RETURNING THE BANK TO PROFITABILITY AND RESTORING ITS COMMERCIAL DRIVE HE MIGHT JUSTIFIABLY CLAIM THE ROLE OF THE MOUSE FOR HIMSELF ONE MONTH AFTER TAKING OVER AT THE MONEYLOSING STATEOWNED FRENCH BANKING GIANT THE 55YEAROLD FORMER SOCIALIST IDEOLOGUE HAS ALREADY SET THE TONE FOR A NEW REGIME TO REPLACE THE BANK'S VICIOUS CIRCLE OF RISKY CREDIT VENTURES AND LOAN LOSSES HIS AIM HE SAYS IS TO RETURN CREDIT LYONNAIS TO PROFIT NEXT YEAR WITH A VIEW TO FLOATING ITS SHARES IN A PRIVATIZATION POSSIBLY AS EARLY AS 1996 MR PEYRELEVADE APPEARS TO HAVE WON THE BACKING OF STAFF WITH A BACKTOBASICS APPROACH HIS STYLE IS IN SHARP CONTRAST WITH THE MORE CEREBRAL STYLE OF HIS PREDECESSOR FORMER DIRECTOR OF THE FRENCH TREASURY JEANYVES HABERER TO GET THIS BANK BACK ON THE RAILS WE NEED TO ROLL UP OUR SHIRT SLEEVES AND GET DOWN TO WORK MR PEYRELEVADE SAYS AFTER THE TURMOIL OF THE LAST FEW YEARS HE PREDICTS THIS BANK WILL STABILIZE VERY QUICKLY PROVIDING THAT IT CONCENTRATES ON ITS PROFESSIONAL TASK OF BANKING ALREADY HE HAS MADE A NUMBER OF SIGNIFICANT CHANGES ABOLISHING THE BANK'S ANTIQUATED STRUCTURE OF HIERARCHICAL JOB GRADES CENTRALIZING ITS LENDING CONTROLS AND TIGHTENING THE LEASH ON ITS BANKING SUBSIDIARIES HE HAS TRIMMED THE BANK'S EXECUTIVE COMMITTEE FROM 12 TO FOUR PEOPLE MR PEYRELEVADE THE BANK'S TWO GENERAL MANAGERS MICHEL RENAULT AND FRANCOIS GILLE AND DOMINIQUE BAZY AN EXECUTIVE FROM UNION DES ASSURANCES DE PARIS SA THE STATEOWNED INSURANCE COMPANY THAT MR PEYRELEVADE USED TO HEAD WHO HAS SPECIFIC RESPONSIBILITY FOR SLIMMING THE BANK'S INDUSTRIAL PORTFOLIO GETTING CREDIT LYONNAIS BACK TO SATISFACTORY PROFIT LEVELS WILL STILL REQUIRE TWO OR THREE YEARS OF PROGRESSIVE RECOVERY MR PEYRELEVADE ADMITS MEANTIME THE BANK IS LIKELY TO NEED EXTRA CASH TO SHORE UP ITS CAPITAL ADEQUACY RATIOS BUT HE EXPRESSES CONFIDENCE THAT ASSISTANCE FROM THE GOVERNMENT WILL BE FORTHCOMING ADDING THAT EVENTUALLY CREDIT LYONNAIS SHOULD BE ABLE TO AIM FOR A RETURN ON EQUITY OF MORE THAN 10 THAT WOULD BE A SIGNIFICANT ADVANCE ON THE CURRENT PERFORMANCES NOT ONLY OF MOST FRENCH BANKS BUT OF BANKS IN MANY OTHER EUROPEAN COUNTRIES LOWKEY TO THE POINT OF AUSTERITY THE SELFCONFESSED LEFTWINGER OWES HIS LATEST JOB TO THE RECOGNITION BY PRIME MINISTER EDOUARD BALLADUR'S CONSERVATIVE GOVERNMENT OF HIS SKILLS AS A BUSINESS LEADER THERE'S A CERTAIN IRONY IN THAT DURING THE 1970S AS AN AVIATION ENGINEERTURNEDBANKER MR PEYRELEVADE EARNED A REPUTATION FOR HIS SKILL IN FINANCING SALES OF PLANES FROM AIRBUS INDUSTRIE DURING A SPELL AT CREDIT LYONNAIS BUT BY THE EARLY 1980S AS AN AIDE TO PRESIDENT FRANCOIS MITTERRAND'S FIRST PRIME MINISTER PIERRE MAUROY HE HAD BECOME ONE OF THE MEN FRANCE'S BUSINESS ESTABLISHMENT LOVED TO HATE FOR HIS ROLE IN NATIONALIZING LARGE CHUNKS OF FRENCH INDUSTRY AND FINANCE AT CREDIT LYONNAIS ONE OF HIS PRINCIPAL TASKS WILL BE TO UNWIND LARGE CHUNKS OF AN EXPANSION DRIVE SIMILAR IN SOME RESPECTS TO THAT WHICH HE HIMSELF UNDERTOOK IN HIS OLD JOB UNDER MR HABERER A SOCIALIST APPOINTEE THE BANK HAD EMBARKED ON AN AGGRESSIVE STRATEGY OF TAKING EQUITY STAKES IN FIRMS WITH WHICH IT WANTED TO CEMENT CLOSER COMMERCIAL LINKS IT ALSO ENDED UP WITH THE OWNERSHIP OF A NUMBER OF COMPANIES AS A RESULT OF POORLY SUPERVISED LENDING POLICIES INCLUDING IN ONE OF ITS MOST EMBARRASSING FIASCOS THE HOLLYWOOD FILM STUDIO METRO GOLDWYN MAYER THE RESULT WAS A FLOOD OF RED INK FROM WHICH CREDIT LYONNAIS IS STILL STRUGGLING TO EMERGE AFTER A 1992 LOSS OF 185 BILLION FRANCS 319 MILLION LARGELY DUE TO WRITEOFFS OF LOANS TO MGM AND OTHER BORROWERS THE BANK REPORTED ANOTHER BIG DEFICIT FOR THE FIRST HALF OF 1993 TOTALING JUST OVER ONE BILLION FRANCS A LARGE PART OF THAT LOSS REFLECTED THE BANK'S SHARE OF LOSSES AT USINOR SACILOR THE AILING FRENCH STEEL GROUP AND AEROSPATIALE SA THE AERONAUTICAL GIANT CREDIT LYONNAIS HAD TAKEN HOLDINGS AS PART OF A RESHUFFLING OF FRENCH GOVERNMENT INTERESTS NOT DWELLING ON THE PAST MR PEYRELEVADE REFUSES TO RAKE OVER PAST CONTROVERSIES PAST HISTORY IS PAST HISTORY HE SAYS WHAT WE HAVE TO DO NOW IS MANAGE ITS CONSEQUENCES A BANKER'S ROLE HE CONCEDES MAY INCLUDE PROVIDING HIS BEST CLIENTS WITH A MINORITY SUPPLEMENT TO THEIR SHARE CAPITAL AND RESERVES WHATEVER THEIR BUSINESS AT TIMES OF CASHFLOW NECESSITY BUT HE MAKES NO BONES ABOUT HIS VIEW THAT COMMERCIAL BANKS HAVE NO BUSINESS OWNING COMPANIES IN OTHER SECTORS WITH THAT IN MIND HE HAS GIVEN ORDERS FOR WITHDRAWAL OVER THE NEXT TWO YEARS FROM AS MANY OF THESE COMPANIES AS MARKET CONDITIONS PERMIT MGM FOR EXAMPLE IS NOW BEING MANAGED BY CREDIT LYONNAIS WITH A VIEW TO ITS EVENTUAL SALE TO AN OUTSIDE BUYER IF WE ARE SMART WORK HARD AND STRIKE LUCKY HE SAYS WE MAY WELL FIND THAT PEOPLE ARE EXTREMELY INTERESTED IN BUYING MGM MANAGING THE HERITAGE OF THE HABERER YEARS WON'T JUST MEAN RETRENCHMENT HOWEVER ALONG WITH A PATCHWORK OF INDUSTRIAL PARTICIPATIONS MR PEYRELEVADE ALSO INHERITED FROM HIS PREDECESSOR A CROSSBORDER BANKING NETWORK OF A SCOPE UNRIVALED IN EUROPE THANKS TO ACQUISITIONS OVER THE PAST SIX YEARS IN GERMANY SPAIN ITALY AND OTHER WESTERN EUROPEAN COUNTRIES COMBINED WITH RECENT STARTUPS IN HUNGARY RUSSIA AND ELSEWHERE IN EASTERN EUROPE CREDIT LYONNAIS IS PRESENT IN ALMOST EVERY EUROPEAN MARKET FROM PORTUGAL TO UKRAINE THOUGH MANY BANKERS ARE SKEPTICAL ABOUT PANEUROPEAN BANKING PARTICULARLY IN THE RETAIL SECTOR BECAUSE OF WHAT THEY SEE AS DIFFERENCES BETWEEN NATIONAL MARKETS MR PEYRELEVADE IS READY TO TRY TO MAKE IT WORK EVEN IF SOME PEOPLE CRITICIZE CREDIT LYONNAIS'S PAST STRATEGY HE SAYS I CAN'T MYSELF CRITICIZE A BANK THAT INVESTS IN BANKING ONE OF HIS OBJECTIVES WILL BE TO WELD THE BANK'S OPERATIONS ACROSS EUROPE INTO A UNIFIED OPERATIONAL WHOLE A SINGLE EUROPEAN CURRENCY MAY NOT BE FOR TOMORROW HE ADMITS BUT I VERY MUCH HOPE IT WILL COME SOME DAY BECAUSE OF THE BOOST THAT WOULD MEAN FOR THE EUROPEAN SINGLE MARKET MEANTIME WHILE REMAINING PRUDENT HE SAYS I WANT TO ADAPT THE BANK TO THE PROSPECT OF EUROPEAN INTEGRATION WITH THAT IN MIND SENIOR STAFF WILL BE MOVED AROUND FROM ONE COUNTRY TO ANOTHER IN ORDER TO GET TO KNOW THE GROUP'S ACTIVITIES ACROSS EUROPE COMMUNICATIONS SYSTEMS WILL BE PROGRESSIVELY LINKED TO IMPROVE SERVICE TO CUSTOMERS 9312290128 931229 TEXAS JOURNAL ANOTHER TIP DON'T SPILL PUNCH ON A CONTACT'S SUIT BY ROBERT JOHNSON ALTHOUGH TEXAS IS A STRONG LINK IN THE GOOD OL' BOYS NETWORK THE ART OF BACKSLAPPING DOESN'T COME NATURALLY HERE AT LEAST THAT'S WHAT DONNA FISHER A FORMER HOUSTON OIL INDUSTRY WORKER IS COUNTING ON TO HELP SELL HER BOOK POWER NETWORKING 55 SECRETS FOR PERSONAL AND PROFESSIONAL SUCCESS MS FISHER SAYS THE BOOK ISN'T AIMED PRIMARILY AT OILPATCH DEALMAKERS BUT AT THE UNCOACHED CLIMBERS OF THE CORPORATE LADDER THOSE PEOPLE DIDN'T NEED TO KNOW THE FINE POINTS OF NETWORKING WHEN JOBS WERE EASIER TO FIND SHE SAYS BUT THEN PETROLEUM PRICES COLLAPSED IN 1985 AND MANY OF THE NETWORKING SKILLS WERE NEVER LEARNED ALSO MANY PEOPLE WHO HAVE ACQUIRED SOME NETWORKING SKILLS SEEM TO THINK THERE'S SUPPOSED TO BE A MORATORIUM ON THEIR EFFORTS OVER THE HOLIDAYS NOT SO ARGUES MS FISHER WHOSE BOOK INCLUDES THE FOLLOWING GUIDANCE DON'T BE TOO FAST TO PULL OUT YOUR BUSINESS CARD MAKE IT SEEM CASUAL WHEN SOMEONE ASKS WHAT DO YOU DO NEVER GIVE YOUR TITLE DESCRIBE YOUR JOB AS SIMPLY AND INTERESTINGLY AS POSSIBLE PREFERABLY WITH A HUMOROUS ANECDOTE CONGRATULATE PROSPECTIVE BOSSES AND CLIENTS ON A GREAT YEAR THERE MUST HAVE BEEN SOMETHING GOOD ABOUT IT IF YOU TALK SHOP DON'T GET TOO SERIOUS DON'T TEACH PREACH OR TRY TO IMPRESS AT THE OFFICE PARTY TRY TO BE REMEMBERED FOR HOW MUCH FUN YOU WERE 9312290127 931229 TREASURY PLANS TO SELL 252 BILLION OF BILLS WASHINGTON THE TREASURY PLANS TO RAISE 325 MILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 252 BILLION IN SHORTTERM BILLS TO REDEEM 2487 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON APRIL 7 AND JULY 7 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794J88 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794M35 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9312290126 931229 HONDO RESTRUCTURES DEBT ROSWELL NM HONDO OIL & GAS CO SAID IT RESTRUCTURED 745 MILLION OF DEBT HELD BY LONRHO PLC ITS PRIMARY LENDER UNDER THE TERMS THE INTEREST RATE ON THE DEBT FALLS TO ABOUT 6 PREVIOUSLY 305 MILLION OF THE DEBT WAS CARRIED AT A RATE OF 135 AND THE REMAINDER AT THE PRIME RATE PLUS 175 POINTS IN DECEMBER 1992 HONDO AGREED WITH LONRHO TO DEFER PRINCIPAL AND INTEREST PAYMENTS UNDER THE NEW RESTRUCTURING INTEREST PAYMENTS MAY BE MADE WITH HONDO COMMON STOCK OR ADDED TO THE PRINCIPAL OF THE DEBT AT LONRHO'S OPTION HONDO SAID 9312290124 931229 YIELDS HOLD STEADY ON BANK BROKER CDS NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE GENERALLY FLAT IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS REMAINED AT 273 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS EASED TO 445 FROM 446 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS STAYED AT 323 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD FELL TO 431 FROM 456 THE SURVEY SAID ON LARGEDENOMINATION OR JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE REMAINED AT 280 ON FIVEYEAR JUMBOS THE AVERAGE SLIPPED TO 465 FROM 466 ACCORDING TO BANXQUOTE 9312290123 931229 ECONOMY HOLIDAY RETAIL SALES FELL FROM NOVEMBER BUT JUMPED FROM '92 NEW YORK HOLIDAY SEASON SALES AT THE NATION'S RETAILERS SHOWED A HEALTHY INCREASE FROM LAST YEAR BUT FELL SLIGHTLY FROM NOVEMBER JOHNSON REDBOOK SERVICE WHICH FOLLOWS SALES AT DEPARTMENT STORES DISCOUNT OUTLETS AND CHAIN RETAILERS SAID SEASONALLY ADJUSTED SALES FOR DECEMBER ROSE 81 THROUGH CHRISTMAS DAY COMPARED WITH A YEAR EARLIER BUT SALES FOR THE MONTH WERE OFF 08 FROM NOVEMBER ACCORDING TO JOHNSON CHAIN STORES HAD SALES GAINS OF 98 FOR THE PERIOD BETTER THAN THE EXPECTED 8 GAIN WHILE DEPARTMENTSTORE GAINS OF 35 WERE AS EXPECTED DISCOUNTERS SHOWED GAINS OF 97 FOR THE PERIOD BUT THAT WAS SHORT OF JOHNSON'S ESTIMATE OF A 13 OR 14 GAIN FOR THE SEASON HOLIDAY SALES WERE ALSO RELATIVELY STRONG AT THE NATION'S MALLS ACCORDING TO THE INTERNATIONAL COUNCIL OF SHOPPING CENTERS TOTAL SALES IN MALL STORES EXCLUDING ANCHOR STORES WERE UP 68 FOR THE HOLIDAY SHOPPING SEASON FROM THE DAY AFTER THANKSGIVING THROUGH DEC 24 SHOPPERS SEEMED TO WAIT EVEN LATER THIS YEAR TO MAKE PURCHASES DRIVING UP SALES IN THE FINAL WEEK BY 99 COMPARED WITH A YEAR EARLIER MAKING IT ONE OF THE STRONGEST WEEKS OF THE SEASON ACCORDING TO THE COUNCIL WHICH SURVEYS 23 REGIONAL MALLS THE TOP MERCHANDISE CATEGORIES WERE HOME FURNISHINGS UP 24 JEWELRY UP 22 AND FOOD UP 11 CATEGORIES THAT DECLINED INCLUDED MEN'S APPAREL DOWN 44 AND WOMEN'S APPAREL DOWN 43 THE COUNCIL SAID IT BELIEVES THAT THE LARGE NUMBER OF NEW HOMEOWNERS WILL CONTINUE TO DRIVE SALES OF HOME FURNISHINGS AND BIGTICKET ITEMS IN THE COMING MONTHS 9312290122 931229 TRAVELERS TO REDEEM DEBENTURES HARTFORD CONN TRAVELERS CORP SAID IT WILL REDEEM ON MARCH 10 THE 194 MILLION OUTSTANDING PRINCIPAL AMOUNT OF ITS 832 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2015 THE COMPANY SAID IT WILL PAY 100830 PER 1000 PRINCIPAL AMOUNT AS WELL AS AN INTEREST PAYMENT DUE MARCH 10 TO HOLDERS OF RECORD AS OF JAN 31 TRAVELERS SAID 1000 PRINCIPAL AMOUNT OF EACH DEBENTURE MAY BE CONVERTED INTO 195 COMMON SHARES IN TRAVELERS ASSUMING THE PREVIOUSLY ANNOUNCED MERGER WITH PRIMERICA CORP IS COMPLETED EACH 1000 PRINCIPAL AMOUNT OF THE DEBENTURES WOULD CONVERT TO 157 SHARES OF THE SURVIVING COMPANY IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING TRAVELERS FELL 75 CENTS TO 31375 AND PRIMERICA FELL 50 CENTS TO 3950 9312290121 931229 AT&T SEEKS RESIDENTIAL RATE BOOST SAYS NEW DISCOUNT PLAN TO OFFSET GAINS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO FILED FOR AN INCREASE IN RESIDENTIAL LONGDISTANCE RATES FOR THE SECOND TIME IN FIVE MONTHS BUT THE COMPANY SAID A NEW DISCOUNT PLAN WILL OFFSET PROJECTED REVENUE GAINS OF 750 MILLION THE NEW DISCOUNT PLAN TRUE USA SAVINGS IS AIMED AT ANSWERING MCI COMMUNICATIONS CORP'S SUCCESSFUL FRIENDS AND FAMILY PLAN AS WELL AS SPRINT CORP'S MOST DISCOUNT PLAN BOTH OF WHICH ARE AIMED AT THE HIGHUSE RESIDENTIAL MARKET AT&T'S PLAN WILL GIVE A 20 DISCOUNT TO CALLERS WHO SPEND MORE THAN 25 A MONTH AND A 10 DISCOUNT TO CALLERS WHO SPEND BETWEEN 10 AND 15 A MONTH CALLERS SPENDING LESS THAN 10 A MONTH WILL SEE A 63 BASE RATE INCREASE AT&T ALSO FILED FOR A 375 RATE INCREASE FOR INTERNATIONAL CALLS TO 123 COUNTRIES AND INCREASES OF ABOUT 335 FOR CERTAIN DOMESTIC OPERATORASSISTED COLLECT AND CALLINGCARD CALLS ANALYSTS EXPRESSED SOME FRUSTRATION WITH AT&T'S LATEST EFFORT TO TAKE THE LEAD IN RESIDENTIAL DISCOUNT PLANS I'M DISAPPOINTED BECAUSE THIS PLAN IS NOT REALLY AN ANSWER TO FRIENDS AND FAMILY SAID JOHN E MONEY AN ANALYST WITH ARGUS RESEARCH RAISING RATES AND LOWERING THEM IS NOT ANY BENEFIT TO CONSUMERS THIS PLAN JUST DOESN'T SHOW MUCH IMAGINATION MR MONEY ALSO SAID THAT THE PROJECTED SAVINGS ASSUMES THAT CUSTOMERS WILL EXTENSIVELY SIGN UP FOR THE DISCOUNT PLANS CONSUMERS MUST ENROLL FOR AT&T TRUE USA SAVINGS THE COMPANY SAID BUT THERE ARE NO SIGNUP OR MONTHLY FEES MR MONEY SAID THE PROMOTION STRIKES ME AS A BIT OF A SHELL GAME IT'S A NET WASH IF THE CONSUMERS CATCH ON STILL OTHER ANALYSTS LAUDED AT&T FOR FOCUSING ITS COMPETITIVE ENERGIES ON HIGHUSE CUSTOMERS RATHER THAN ACROSS THE BOARD WHAT THEY'RE DOING IS BEING INTELLIGENT ABOUT COMPETING SAID JACK GRUBMAN AN ANALYST WITH PAINEWEBBER INC ON ONE HAND THEY ARE BEING AS AGGRESSIVE AS EVER FOR PROMOTIONS FOR HIGHERVOLUME USERS BUT ON THE OTHER HAND THEY ARE PAYING FOR THAT BY INCREASING RATES ON THE LOWEREND CUSTOMERS MOST ANALYSTS THINK MCI AND SPRINT WILL QUICKLY FOLLOW SUIT AND FILE FOR RATE INCREASES TO MATCH AT&T'S PRICE BOOSTS AT&T'S TRUE USA SAVINGS PLAN IS THE COMPANY'S SECOND ATTEMPT TO RESPOND TO MCI'S FRIENDS AND FAMILY DISCOUNT PLAN WHICH HAS PROVEN EXTREMELY EFFECTIVE AT DRAWING NEW RESIDENTIAL CUSTOMERS LAST MONTH AT&T SAID IT WOULD ABANDON ITS ENIGMATIC I PLAN AND LAUNCH MOREAGGRESSIVE MARKETING EFFORTS TO MAINTAIN ITS CUSTOMER BASE WHICH CONTINUES TO ERODE AT&T'S SENSE OF URGENCY IN THE RESIDENTIAL MARKET STEMS FROM MCI'S SUCCESS WITH 19 OF THE RESIDENTIAL MARKET MCI HAS ADDED MORE THAN 10 MILLION NEW CALLERS THROUGH ITS FRIENDS AND FAMILY PROMOTION AT&T HAS ABOUT 60 OF THE DOMESTIC RESIDENTIAL MARKET THE TELECOMMUNICATIONS AND COMPUTER COMPANY SAID ITS NEW SAVINGS PLAN IMPROVES ON COMPETING PROMOTIONS BECAUSE IT ISN'T RESTRICTED TO CALLING LISTS SUCH AS THOSE IN THE FRIENDS AND FAMILY CALLING CIRCLE AT&T TRUE USA SAVINGS SUBSCRIBERS DON'T HAVE TO WORRY ABOUT WHO THEY'RE CALLING OR ANY OTHER LIMITATIONS SAID JOSEPH P NACCHIO PRESIDENT OF AT&T'S CONSUMER LONGDISTANCE BUSINESS AS LONG AS THEY SPEND 10 A MONTH THEY'LL SAVE ON ALL THEIR DOMESTIC LONGDISTANCE CALLS IT'S THAT SIMPLE MEANWHILE WASHINGTONBASED MCI DOWNPLAYED AT&T'S NEW DISCOUNT PROGRAM IT WON'T CHANGE MUCH SAID ANGELA DUNLAP PRESIDENT OF CONSUMER MARKETS AT MCI BUT CUSTOMERS NEED TO UNDERSTAND THE EXTENT OF REAL SAVINGS MS DUNLAP SAID AT&T'S DISCOUNT PLAN FOLLOWS A RATEBASE INCREASE SHE SAID MCI CUSTOMERS WITHOUT A PREMIUM PLAN STILL SAVE MONEY COMPARED WITH AT&T CUSTOMERS SPRINT KANSAS CITY MO NOTED THAT ALL OF ITS CUSTOMERS QUALIFY FOR ITS MOST SAVINGS PLAN WITH NO REQUIRED MINIMUM BILL WE FEEL WE HAVE SOMETHING EXTREMELY COMPETITIVE AND AT&T IS SIMPLY TRYING TO CATCH UP SAID JERRY RHODES VICE PRESIDENT OF MARKETING CONSUMER SERVICES GROUP AT SPRINT STILL ANALYSTS EXPECT SPRINT AND MCI TO MATCH AT&T'S BASERATE INCREASE SHORTLY NEITHER SPRINT NOR MCI WOULD COMMENT ON PENDING RATE FILINGS 9312290120 931229 WORLD MARKETS TOKYO SHARES JUMP 19 REGAINING GROUND LOST A DAY EARLIER HONG KONG STOCKS HIT RECORD A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS SNAPPED BACK FROM MONDAY'S SHARP DROP IN THIN HOLIDAY TRADING WITH BUYING BY NEWLY FORMED INVESTMENT TRUST FUNDS BOOSTING THE MARKET FRANKFURT SHARES SLIPPED WHILE THE HONG KONG MARKET SURGED TO ANOTHER RECORD LONDON WAS CLOSED FOR A HOLIDAY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11153 UP 072 REFLECTING HIGHER ASIA/PACIFIC AND AMERICAN MARKETS AND LOWER EUROPEAN MARKETS HOME CONSTRUCTION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 15121 UP 716 OR 5 WITH HENDERSON LAND DEVELOPMENT OF HONG KONG POSTING A 17 GAIN IN ITS LOCAL CURRENCY RETAILERS STOCKS TRAILED AT 8890 DOWN 096 OR 11 WITH AOYAMA TRADING OF JAPAN SLIDING 5 IN LOCAL CURRENCY THE NIKKEI ENDED THE DAY NEAR ITS INTRADAY HIGH EXPORTORIENTED SHARES WERE AMONG THE SESSION'S STRONGEST GAINERS AS THE YEN CONTINUED TO WEAKEN AGAINST THE DOLLAR A WEAKER YEN RESULTS IN MORE FAVORABLE RETURNS FROM ABROAD FOR EXPORTERS BULLISH SENTIMENT WAS ONLY LUKEWARM HOWEVER AS THE POLITICAL AND ECONOMIC OUTLOOKS REMAINED HAZY THE MOOD WAS KEPT FROM DETERIORATING THOUGH BY THE CONTINUING RALLY IN HONG KONG AND STRONG PERFORMANCES MONDAY ON WALL STREET AND IN FRANKFURT AND PARIS THE BULK OF THE SESSION'S BUYING CAME FROM NEWLY FORMED INVESTMENT TRUSTS SOME 19 NEW INVESTMENT TRUSTS ARE SLATED TO BEGIN OPERATIONS THIS WEEK AND THEIR BUYING ESTIMATED AT MORE THAN 250 BILLION YEN 224 BILLION SHOULD KEEP THE NIKKEI ABOVE 17000 THROUGH THE REMAINDER OF 1993 THAT WOULD BRING THE INDEX ITS FIRST ANNUAL GAIN IN FOUR YEARS IN FRANKFURT THE DAX 30STOCK INDEX SLIPPED 1116 POINTS TO 224282 AFTER JUMPING 3114 OR 14 MONDAY THE MARKET DROP IN THIN TRADING WAS ATTRIBUTED TO THE EXPIRATION OF OVERTHECOUNTER STOCK OPTIONS IN ADDITION MANY TRADERS HAD TAKEN LONG POSITIONS EXPECTING SHARE PRICES TO CONTINUE RALLYING AND MAY HAVE SOLD QUICKLY WHEN THE INDEX DROPPED ELSEWHERE IN EUROPE PARIS SHARE PRICES FELL AFTER THREE CONSECUTIVE RECORDSETTING SESSIONS ON A BOUT OF PROFITTAKING AMSTERDAM SHARES CLOSED LOWER ON PROFITTAKING AFTER MONDAY'S STEEP GAINS BUT TURNOVER WAS LOW A ROUND OF PROFITTAKING ALSO LED ZURICH STOCKS LOWER BUT THE BRUSSELS MARKET PUSHED HIGHER TO ITS FOURTH CONSECUTIVE RECORD THE RISE WAS ATTRIBUTED TO INVESTMENT FUNDS BUYING SHARES IN BELGIUM'S LEADING STOCKS IN ASIA HONG KONG SHARES SURGED 48 TO A RECORD ON A BUYING WAVE OF BANKING AND PROPERTY ISSUES DEFYING BEIJING'S LATEST THREAT OF DISBANDING THE COLONY'S LEGISLATURE AND ELECTED BODIES AFTER CHINA'S TAKEOVER OF SOVEREIGNTY IN 1997 THE KEY STOCK INDEX JUMPED FROM THE OPENING AFTER A RECESS MONDAY THE RISE WAS THE BIGGEST ONEDAY POINT GAIN THIS YEAR WITH LESS THAN A WEEK OF TRADING LEFT FOR 1993 THE KEY STOCK INDEX HAS MORE THAN DOUBLED IN THE YEARLARGELY BECAUSE FOREIGN INVESTORS HAVE POURED MONEY INTO THE MARKET IN THE PAST SIX MONTHS SINGAPORE STOCKS ALSO HIT A HIGH THEIR FOURTH IN A ROW ON A MIXTURE OF BUYING BY INSTITUTIONAL AND INDIVIDUAL INVESTORS VOLUME WAS HEAVY BUT BROKERS SAID NO FUNDAMENTAL NEWS WAS BEHIND THE JUMP MANILA SHARES EASED IN HECTIC TRADING BREAKING A SEVENDAY STRING OF RECORD HIGHS SEOUL STOCKS FINISHED SHARPLY LOWER ON THE MARKET'S LAST TRADING DAY OF THE YEAR BUFFETED BY SELLING BY A STOCK MARKET STABILIZATION FUND THE SELLING FOLLOWED A DECISION MONDAY BY DIRECTORS TO SELL PART OF THE FUND'S SHAREHOLDINGS TO CURB WHAT THEY SEE AS AN OVERHEATED MARKET MARKETS IN SYDNEY AND WELLINGTON WERE CLOSED FOR HOLIDAY IN CORPORATE DEVELOPMENTS BANESTO FELL 140 PESETAS OR 66 TO 1995 PESETAS 1428 BEFORE TRADING IN THE SHARES WAS SUSPENDED THE SPANISH BANK'S CHAIRMAN AND ENTIRE BOARD WERE FIRED BY SPAIN'S CENTRAL BANK AND REPLACED BY A NEW EXECUTIVE TEAM IN AN ATTEMPT TO STAVE OFF A THREATENED RUN ON DEPOSITS THE BANK OF SPAIN SAID IT WAS TAKING ACTION IN THE LIGHT OF APPARENT SEVERE FINANCIAL PRESSURES ON BANESTO IT GAVE NO DETAILS OF THE SIZE OF A RUMORED DEFICIT FACING THE BANK FOR 1993 BUT SAID DEMANDS ON BANESTO'S BALANCE SHEET NECESSITATED THE ASSISTANCE OF THE ENTIRE SPANISH BANKING SYSTEM HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9312290119 931229 BUSINESS BRIEF HOLDERS REACH TENTATIVE PACT TO SETTLE SUITS RELATED TO EXECUTIVE LIFE BAILOUT LOS ANGELES SEVERAL PARTIES HAVE TENTATIVELY AGREED TO A SETTLEMENT THAT WOULD RESOLVE NEARLY ALL REMAINING LITIGATION SURROUNDING THE BAILOUT OF FAILED EXECUTIVE LIFE INSURANCE CO CALIFORNIA'S INSURANCE COMMISSIONER SAID THE PROPOSED PACT WOULD END LITIGATION BY HOLDERS OF ABOUT 165 BILLION OF MUNICIPAL BONDS BACKED BY EXECUTIVE LIFE OR MUNIGICS A FORM OF GUARANTEED INVESTMENT CONTRACT THE BONDHOLDERS' SUIT TO OVERTURN THE BAILOUT WHICH WENT INTO EFFECT IN SEPTEMBER IS PENDING IN THE STATE APPEALS COURT DETAILS OF THE PACT WERE SKETCHY THE BONDHOLDERS APPARENTLY WOULD RECEIVE ESSENTIALLY THE SAME DEAL THEY REJECTED LAST SUMMER SWEETENED WITH MORE THAN 20 MILLION IN ADDITIONAL VALUE TO BE PAID BY INSTITUTIONAL POLICYHOLDERS WHO WEREN'T IDENTIFIED THE PACT ALSO WOULD COVER A SUBSTANTIAL PORTION OF LEGAL FEES AND EXPENSES INCURRED BY THE BONDHOLDERS NUMEROUS EFFORTS TO RESOLVE THE DISPUTE HAVE FAILED IN THE PAST AND COMMISSIONER JOHN GARAMENDI'S STATEMENT YESTERDAY WAS CAUTIOUS THE PARTIES ARE NEAR AGREEMENT ON A FRAMEWORK FOR A RESOLUTION SUBJECT TO APPROPRIATE APPROVALS AND SATISFACTION OF VARIOUS CONDITIONS A SPOKESMAN SAID THE COMMISSIONER ISSUED THE STATEMENT BECAUSE THERE IS A FEELING THAT THERE'S MOMENTUM TOWARD A SETTLEMENT FRAMEWORK THERE ISN'T ANY TIMETABLE FOR FINAL AGREEMENTS TO BE SIGNED THE SPOKESMAN SAID WE HAVEN'T HAD SUFFICIENT TIME OR INFORMATION TO DETERMINE WHETHER WE WILL SUPPORT THE PROPOSAL SAID JOHN WILLAFORD AN ATTORNEY FOR A BONDHOLDER TRUSTEE TEXAS COMMERCE BANK EL PASO TEXAS THE BANK IS A SUBSIDIARY OF TEXAS COMMERCE BANCSHARES WHICH IN TURN IS OWNED BY CHEMICAL BANKING CORP NEW YORK COMMISSIONER GARAMENDI SAID THE SETTLEMENT FRAMEWORK IS SUBJECT TO REVIEW AND APPROVAL BY THE NATIONAL ASSOCIATION OF LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATIONS VARIOUS MUNIGIC TRUSTEES INCLUDING TEXAS COMMERCE BANK EL PASO AND GROUP ANNUITY PARTICIPATION PROTECTION ASSOCIATION MEMBERS WHOSE PARTICIPANTS HAVE INVESTED IN PENSION GROUPANNUITY CONTRACTS THE PROPOSAL ALSO REQUIRES VARIOUS COURT APPROVALS 9312290118 931229 REVIEW & OUTLOOK EDITORIAL ASIDES MOVABLE MENACE THE MIDWEST AND EAST HAVE BEEN SHIVERING FROM RECORD COLD WITH MINNEAPOLIS HITTING 50 BELOW AND DOUBLEDIGIT LOWS STRETCHING ACROSS INTO MAINE BUT WE THOUGHT YOU'D LIKE TO KNOW THERE'S BEEN A HEAT WAVE IN NOME ON MONDAY THE TEMPERATURE THERE HIT 40 ABOVE A RECORD HIGH FOR THE DATE OUR POLAR BEARS ARE WEARING BIKINIS VICKIE HORTON JOKED TO THE ASSOCIATED PRESS WITH A RIDGE OF WARM AIR REACHING NEARLY TO THE NORTH POLE ANCHORAGE HAD RAIN WE GUESS GLOBAL WARMING HAS NOT ENDED ONLY MIGRATED NORTH 9312290117 931229 ABREAST OF THE MARKET INDUSTRIAL INDEX INCHES UP 084 TO RECORD ON LASTMINUTE RALLY BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK AFTER WAVERING IN LATE TRADING BUYERS OF BLUECHIP STOCKS JUMPED IN MOMENTS BEFORE THE CLOSE TO SEND THE DOW JONES INDUSTRIAL AVERAGE TO ITS SECOND STRAIGHT RECORD THE INDUSTRIALS ROARED BACK FROM AN EARLY 12POINT DEFICIT TO INCH UP 084 TO 379377 AMONG BLUECHIP ISSUES ALUMINUM CO OF AMERICA ROSE 1 1/8 TO 69 3/4 CATERPILLAR GAINED 3/8 TO 90 3/8 AND CHRYSLER ADDED 5/8 TO 53 7/8 BIG BOARD ADVANCERS TOPPED DECLINERS 1217 TO 825 VOLUME ROSE SLIGHTLY TO 201 MILLION SHARES FROM THE 171 MILLION THAT CHANGED HANDS MONDAY CHIP MAKERS GOT A BOOST FOLLOWING A REPORT IN YESTERDAY'S WALL STREET JOURNAL THAT THE CLINTON ADMINISTRATION CALLED FOR EMERGENCY TALKS ON SEMICONDUCTOR TRADE WITH JAPAN NEW FIGURES SHOW THE FOREIGN SHARE OF THE JAPANESE SEMICONDUCTOR MARKET FELL TO 181 IN THE THIRD QUARTER FROM 202 AT THE END OF LAST YEAR MOTOROLA ROSE 1/2 TO 91 7/8 TEXAS INSTRUMENTS ADDED 1/2 TO 63 1/8 MICRON TECHNOLOGY GAINED 1/4 TO 46 3/8 AND NASDAQTRADED APPLIED MATERIALS ROSE 1 TO 37 3/4 INTEL JUMPED 1 1/4 TO 64 IN NASDAQ TRADING ASIDE FROM THE WHITE HOUSE NEWS GOLDMAN SACHS ANALYST RAJIV CHAUDRI RAISED HIS RATING ON THE STOCK TO RECOMMENDED FOR PURCHASE FROM TRADING BUY SOME OTHER LARGE TECH STOCKS DREW BUYING MICROSOFT JUMPED 2 1/4 TO 82 3/4 AND CISCO SYSTEMS MOVED UP 1 TO 63 BOTH ARE TRADED ON NASDAQ BIG BOARDLISTED COMPAQ COMPUTER JUMPED 1 3/4 TO 75 1/4 ELSEWHERE AETNA LIFE & CASUALTY CLIMBED 1 3/8 TO 60 1/4 THE COMPANY'S AETNA GOVERNMENT HEALTH PLANS INC SUBSIDIARY SAID THE DEFENSE DEPARTMENT DIRECTED IT TO PROCEED WITH IMPLEMENTATION OF THE MANAGED CARE SUPPORT PROGRAM AND TO BEGIN HEALTHCARE DELIVERY FEB QVC NETWORK FELL 1 5/8 TO 37 7/8 ON NASDAQ THIS NEWSPAPER REPORTED THAT ACCOUNTANTS SAY THAT WHICHEVER COMPANY ENDS UP WINNING THE THREEMONTH BATTLE FOR PARAMOUNT COMMUNICATIONS WILL INHERIT BILLIONS OF DOLLARS OF GOODWILL CHARGES THAT WILL LOWER PROFITS FOR THE NEXT 20 TO 40 YEARS VIACOM IS THE OTHER SUITOR AS REPORTED QVC'S BID FOR PARAMOUNT WHICH WAS ENDORSED BY PARAMOUNT'S BOARD LAST WEEK CURRENTLY IS VALUED AT 98 BILLION OR 8146 A SHARE PARAMOUNT INCHED 1/4 LOWER TO 77 7/8 IN SEPARATE NEWS NASDAQ CONFIRMED THAT THE SECURITIES AND EXCHANGE COMMISSION RAISED QUESTIONS ABOUT LAST WEEK'S TRADING HALT IN QVC SHARES AMID THE HEAT OF THE TAKEOVER BATTLE FOR PARAMOUNT MERCK WHICH FINISHED UNCHANGED AT 35 1/4 LED THE BIG BOARD MOSTACTIVE LIST FOR THE SECOND STRAIGHT DAY VOLUME ON THE STOCK ROSE TO ABOUT 36 MILLION SHARES FROM AVERAGE DAILY TURNOVER OF 32 MILLION THE DOW JONES TRANSPORTATION AVERAGE ALSO BROKE THROUGH ITS PREVIOUS RECORD OF 177195 THE BAROMETER GAINED 514 POINTS TO 177561 AMONG ITS COMPONENTS AMERICAN PRESIDENT GAINED 1 1/4 TO 56 5/8 AND SOUTHWEST AIRLINES ADDED 1 TO 36 7/8 TRADERS SAID STOCK PRICES TRACKED BOND PRICES TO SOME EXTENT THE TREASURY'S LONG BOND BEGAN THE DAY ABOUT 1/2 POINT LOWER FOLLOWING NEWS THAT THE CONFERENCE BOARD'S CONSUMER CONFIDENCE INDEX ROSE AN UNEXPECTED EIGHT POINTS TO 802 FOR DECEMBER BY THE SESSION'S END LONGTERM GOVERNMENT SECURITIES WERE ONLY 1/16 POINT LOWER WITH THE YIELD AT 623 SHORTERTERM MATURITIES POSTED SMALL GAINS NASDAQ STOCK MARKET TECHNOLOGY AND BIOTECHNOLOGY ISSUES ATTRACTED MOST OF YESTERDAY'S INTEREST NASDAQ NATIONAL MARKET VOLUME WAS 196906300 SHARES WHILE TOTAL NASDAQ VOLUME REGISTERED 247610000 SHARES THE NASDAQ COMPOSITE INDEX CLIMBED 350 POINTS OR 046 TO END AT 76456 OUTPACING BIG BOARD INDEXES ALTHOUGH IT REMAINS FAR FROM ITS HIGH OF 78742 SET ON OCT 15 THE BROADER MARKET PLAYED A LITTLE BIT OF CATCHUP TODAY SAID TODD CLARK A SENIOR BLOCK TRADER AT MABON SECURITIES CORP HE EXPECTS ENDOFYEAR MARKUPS TO CONTINUE THIS WEEK AND TO LIFT VOLUME BY FRIDAY THERE ARE A LOT OF BUYERS AROUND AT THE END OF THE YEAR AGREED BILL ALLYN MANAGING DIRECTOR AND HEAD OF LISTED TRADING AT JEFFRIES & CO HE ALSO EXPECTS THE BUYING TO PERSIST THROUGH YEAR END BUT HE SAID LARGER STOCKS PROBABLY WILL GIVE BACK GROUND NEXT WEEK AS THE NEW YEAR GETS UNDER WAY 9312290116 931229 WHO'S NEWS COLTEC INDUSTRIES COLTEC INDUSTRIES NEW YORK THIS AEROSPACE AUTOMOTIVE AND INDUSTRIAL PRODUCTS AND MANUFACTURING CONCERN NAMED THREE CORPORATE OFFICERS FORMERLY SENIOR VICE PRESIDENTS AS EXECUTIVE VICE PRESIDENTS PAUL G SCHOEN 49 YEARS OLD ANTHONY J DIBUONO 63 AND LAURENCE H POLSKY 50 ALSO RICHARD L DASHNAW 56 WAS NAMED A CORPORATE OFFICER AND SENIOR VICE PRESIDENT GROUP OPERATIONS WHILE HERBERT L HERMAN 64 JOSEPH L PETESCIA 60 AND KENNETH W MANNE 50 WERE NAMED STAFF VICE PRESIDENTS 9312290115 931229 CREDIT RATINGS LITTON INDUSTRIES BEVERLY HILLS CALIF MOODY'S INVESTORS SERVICE INC LOWERED THE RATINGS OF THE COMPANY'S LONG AND SHORTTERM DEBT CITING THE RECENT SPINOFF OF ITS COMMERCIAL OPERATIONS THE RATINGS AGENCY SAID LITTON'S FUTURE REVENUE GROWTH IS NOW TIED PRINCIPALLY TO THE GLOBAL DEFENSE INDUSTRY WHICH IS EXPECTED TO FACE FURTHER CONSOLIDATION AND PRESSURE FROM DWINDLING ORDERS LITTON'S ELECTRONICSORIENTED DEFENSE OPERATIONS FACE FEW GROWTH OPPORTUNITIES AND ITS MARINE ENGINEERING SECTOR FACES A MORE UNCERTAIN FUTURE MOODY'S SAID BY SPINNING OFF ITS COMMERCIAL BUSINESS THE AGENCY SAID THE COMPANY IS SACRIFICING REVENUE GROWTH AND GOOD DIVERSIFICATION OF EARNINGS MOODY'S DOWNGRADED LITTON'S SENIOR UNSECURED DEBT TO BAA3 FROM BAA2 RATINGS ON THE COMPANY'S 415 SHELF FILING WAS DOWNGRADED TO PBAA3 FROM PBAA2 AND ITS SHORTTERM RATING FOR COMMERCIAL PAPER WAS DOWNGRADED TO PRIME3 FROM PRIME2 LITTON OFFICIALS WERE UNAVAILABLE TO COMMENT LORAL CORP NEW YORK STANDARD & POORS CORP LOWERED ITS RATING OF LORAL'S SENIOR DEBT TO TRIPLEB FROM TRIPLEBPLUS AND LOWERED THE DEFENSE ELECTRONICS AND SPACE COMMUNICATIONS CONCERN'S RULE 415 SENIOR DEBT TO PRELIMINARY TRIPLEB FROM PRELIMINARY TRIPLEBPLUS S&P SAID THE DOWNGRADE PRIMARILY REFLECTS THE INCREASED FINANCIAL RISK ASSOCIATED WITH LORAL'S AGGRESSIVE GROWTH STRATEGY THE MOVE COMES TWO WEEKS AFTER LORAL'S ANNOUNCEMENT THAT IT PLANNED TO ACQUIRE INTERNATIONAL BUSINESS MACHINES CORP'S FEDERAL SYSTEMS UNIT FOR 158 BILLION WHILE THE EARLIER RATINGS HAD INCORPORATED ROOM FOR DEBTFINANCED ACQUISITIONS ACCORDING TO S&P THE SIZE OF THIS TRANSACTION AND ITS ADVERSE IMPACT ON DEBT QUALITY ARE GREATER THAN ANTICIPATED S&P SAID THAT LORAL'S ANTICIPATED INTERNAL CASH FLOW OF ABOUT 200 MILLION ANNUALLY SHOULD REDUCE FINANCIAL RISK FROM HIGH LEVELS BUT STILL WILL PRECLUDE MATERIAL IMPROVEMENT IN CREDIT QUALITY 9312290114 931229 AFLCIO PREDICTS ECONOMY WILL GROW VERY SLOWLY' IN '94 WASHINGTON THE AFLCIO IN A RELATIVELY DOWNBEAT ASSESSMENT EXPECTS THE ECONOMY TO GROW VERY SLOWLY WITH PROGRESS VERY MODEST NEXT YEAR ACCORDING TO AFLCIO ECONOMIST JOHN ZALUSKY WE'RE NOT TERRIBLY ENCOURAGED MR ZALUSKY SAID IN AN INTERVIEW WE DON'T SEE UNEMPLOYMENT IMPROVING A WHOLE LOT WE DON'T SEE A WHOLE LOT OF NEW JOBS BEING CREATED AS IN RECENT YEARS MOST OF THE JOB GROWTH WILL BE IN THE SERVICE SECTOR THE AFLCIO EXPECTS THOSE JOBS TEND TO PAY LESS THAN MANUFACTURING POSITIONS AND ON AVERAGE PAY SMALLER BENEFITS AND RETIREMENT PENSIONS WHERE JOBS ARE BEING CREATED THEY DON'T SEEM TO BE THE HIGHPAYING JOBS THAT WE'RE LOSING MR ZALUSKY SAID WE DON'T SEE MUCH OF A REBOUND IN MANUFACTURING THE ECONOMY AS MEASURED BY GROSS DOMESTIC PRODUCT GREW ABOUT 28 IN 1993 MOST ECONOMISTS ARE PROJECTING A SIMILAR INCREASE FOR NEXT YEAR IN FAIRNESS MR ZALUSKY SAID THE OUTLOOK IS A WHOLE LOT BETTER THAN IT WAS TWO OR THREE YEARS AGO BUT IT'S NOT A PROSPEROUS RECOVERY COMING OUT OF A RECESSION THE AFLCIO IS THE 86UNION UMBRELLA ORGANIZATION THAT SPEAKS FOR MORE THAN 13 MILLION MEMBERS OF ORGANIZED LABOR MR ZALUSKY SAID THE CLINTON ADMINISTRATION TRIED TO DO THE RIGHT THING WITH THE ECONOMIC STIMULUS PACKAGE IT PROPOSED EARLY IN THE TERM THE PLAN SUCCUMBED TO A REPUBLICAN FILIBUSTER IN THE SENATE NOW MR ZALUSKY SAYS THE ADMINISTRATION COULD GO BACK TO A GREAT MANY ELEMENTS OF THE STIMULUS PACKAGE THE AFLCIO IS URGING THE WHITE HOUSE TO PUSH FOR AN INCREASE IN THE MINIMUM WAGE BEYOND THE CURRENT 425 AN HOUR 9312290112 931229 A NEW ANTIDEPRESSANT WILL CHALLENGE PROZAC BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL A MAJOR NEW ANTIDEPRESSANT ALREADY BEING TOUTED AS PROZAC WITH AN EXTRA PUNCH IS ABOUT TO STIR UP THE 8 BILLION MARKET FOR DEPRESSION DRUGS THE DRUG EFFEXOR COMES FROM ONE OF THE DRUG INDUSTRY'S SLEEPIEST LABS AMERICAN HOME PRODUCTS CORP'S WYETHAYERST UNIT BUT AMERICAN HOME IS PUSHING IT AS A BREAKTHROUGH THAT OFFERS PROZAC'S GREATEST ADVANTAGE REDUCED SIDEEFFECTS WITH ADDED STRENGTH SERIOUS QUESTIONS STILL REMAIN ABOUT AMERICAN HOME'S LOFTY CLAIMS BUT ITS TIMING IS SUPERB YESTERDAY IT WON APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION THAT CLEARS THE WAY FOR EFFEXOR TO COME ONTO THE MARKET AMID UNPRECEDENTED SALES AND CELEBRITY FOR ANTIDEPRESSANTS ELI LILLY & CO'S PROZAC THE BIGGEST CELEBRITY OF THEM ALL IS SET TO BREAK 1 BILLION IN SALES FOR THE SECOND YEAR IN A ROW PRESCRIPTIONS OF PROZAC AND TWO SIMILAR RIVALS PFIZER INC'S ZOLOFT AND SMITHKLINE BEECHAM PLC'S PAXIL ARE LEAPING BY SOME 45 A YEAR ALL THREE USE A POWERFUL PINPOINT TECHNIQUE THAT RAISES LEVELS OF A CRUCIAL BRAIN CHEMICAL CALLED SEROTONIN WITH ONLY LIMITED EFFECTS ON OTHER BRAIN CHEMICALS THAT LETS THEM MATCH THE POWERS OF LESSPRECISE EARLIER DRUGS WHILE AVOIDING THEIR MOST SERIOUS SIDEEFFECTS DIZZINESS CONSTIPATION WEIGHT GAIN HEART TROUBLES AND FATAL POISONING FROM OVERDOSES AMONG OTHERS THE SEROTONIN DRUGS HAVE THEIR OWN SIDE EFFECTS ON A MINORITY OF PATIENTS INCLUDING HEADACHES NAUSEA INSOMNIA AND SEXUAL DYSFUNCTION THE THREE ARE DRUMMING UP HUGE SALES WITH AGGRESSIVE CAMPAIGNS TO REACH THE LEGIONS OF PEOPLE WITH DEPRESSION WHO DON'T SEEK TREATMENT ANOTHER LARGE UNMEASURED CHUNK OF SALES CONTINUES TO COME FROM PATIENTS SEEKING SUBTLER PERSONALITY CHANGES THE PHENOMENON PSYCHIATRIST PETER KRAMER BROUGHT TO POPULAR ATTENTION IN HIS BESTSELLER LISTENING TO PROZAC EFFEXOR THE FIRST MAJOR NEW DEPRESSION DRUG IN NEARLY A YEAR ARRIVES WITH SOME AUDACIOUS PROMISES IT CLAIMS TO ONEUP PROZAC BY RAISING THE LEVELS OF TWO BRAIN CHEMICALS THE CLAIM IS SURE TO STIR INTEREST BECAUSE LOW LEVELS OF EFFEXOR'S SECOND TARGET NOREPINEPHRINE CAN ALSO CONTRIBUTE TO SERIOUS DEPRESSION INDEED MOST OLDER ANTIDEPRESSANTS TRICYCLICS SUCH AS PAMELOR AND MAO INHIBITORS SUCH AS NARDIL WORK ON BOTH SEROTONIN AND NOREPINEPHRINE THEY ALSO ROIL UP NUMEROUS OTHER BRAIN CHEMICALS THAT CAUSE ALL THE TROUBLESOME SIDE EFFECTS A DRUG SUCH AS EFFEXOR WHICH AFFECTS TWO BRAIN CHEMICALS SHOULD HAVE A BROADER SPECTRUM OF ACTIVITY THAN A DRUG THAT AFFECTS ONLY ONE SAYS RICHARD RUDOLPH AN AMERICAN HOME SENIOR DIRECTOR OF CLINICAL RESEARCH THE COMPANY SAID IT HAS INVESTED MORE THAN 300 MILLION OVER A DECADE ON EFFEXOR'S DEVELOPMENT HOUSTON PSYCHIATRIST JAMES CLAGHORN WHO WAS RETAINED BY AMERICAN HOME TO TEST EFFEXOR DESCRIBES THE COMPANY'S EARLY BUZZ ABOUT THE DRUG IN THE LANGUAGE OF A PILOT TAKING EXTREME ACTION TO RESCUE A PLUMMETING PLANE THEY'LL SAY IT'S LIKE PUMPING AND JAMMING BOTH THROTTLES ON HIS AIRLINER HITTING BOTH SYSTEMS INSTEAD OF JUST ONE HE SAYS ADDING THAT HE'S NOT YET CONVINCED BY THE COMPANY'S CLAIMS AMERICAN HOME HAS MUSTERED SOME EARLY RESEARCH TO PROMOTE EFFEXOR AS A HIGHOCTANE PROZAC ALTERNATIVE ONE STUDY FOUND EFFEXOR HELPED 62 OF HOSPITAL PATIENTS WITH MELANCHOLIC DEPRESSION A PARTICULARLY SERIOUS VARIETY WHEREAS PROZAC HELPED 39 AN ANIMAL STUDY SUGGESTED THAT EFFEXOR KICKS IN MORE QUICKLY THAN ANY OTHER ANTIDEPRESSANT JOHN FEIGHNER A SAN DIEGO PSYCHIATRIST ALSO RETAINED TO TEST EFFEXOR FOUND IT PARTICULARLY EFFECTIVE WITH HARDCORE CASES WHO HADN'T RESPONDED TO NUMEROUS OTHER DRUGS IN GENERAL SOME 510 OF DEPRESSION PATIENTS DON'T RESPOND TO ANY TREATMENT BETWEEN 35 AND 40 OF PREVIOUSLY UNTREATABLE PATIENTS RESPONDED TO EFFEXOR DR FEIGHNER SAYS IT CERTAINLY SHOULD BE CONSIDERED IN PATIENTS WHO HAVE NOT RESPONDED WELL TO OTHER ANTIDEPRESSANTS AND PATIENTS WHO ARE HOSPITALIZED OR INCAPACITATED HE SAYS ONE PATIENT IN DR FEIGHNER'S STUDY WAS A 41YEAROLD SOUTHERN CALIFORNIA WOMAN NAMED CHRIS WHO DOESN'T WANT TO REVEAL HER LAST NAME EIGHT YEARS AGO SHE BEGAN SUFFERING SERIOUS EPISODES OF DEPRESSION OFTEN CRIPPLING HER WITH ANXIETY CHRIS SAYS SHE HAD TRIED PROZAC AND SEVERAL OTHER ANTIDEPRESSANTS NOTHING WORKED WHEN SHE BECAME SUICIDAL FIVE YEARS AGO HER DOCTORS TRIED SHOCK THERAPY BUT HER DEPRESSION STUBBORNLY ENDURED SHE CALLS EFFEXOR A MIRACLE AND SAYS SHE HASN'T HAD A SERIOUS DEPRESSION SINCE SHE STARTED THE DRUG THREE YEARS AGO OF COURSE IT WILL TAKE MUCH MORE THAN COMPELLING ANECDOTES TO MAKE A SUCCESS OUT OF EFFEXOR ALSO KNOWN AS VENLAFAXINE OVER THE LAST 40 YEARS EVERY THREE TO FOUR YEARS THERE'S BEEN A DRUG THAT SUPPOSEDLY WORKS FASTER BUT IT'S VERY RARELY BORNE OUT SAYS DR KRAMER THE AUTHOR AND PSYCHIATRIST THE DATA I'VE SEEN SUGGESTS IT'S GOING TO BE COMPARABLE TO DRUGS WE ALREADY HAVE IN TERMS OF EFFICACY SAYS DR CLAGHORN THE HOUSTON PSYCHIATRIST IT'S NOT GOING TO BE BETTER OR WORSE STILL SOME ANALYSTS THINK EFFEXOR WILL MAKE A SERIOUS DENT IN THE DEPRESSION MARKET THE GENESIS REPORT A NEWSLETTER THAT TRACKS THE PHARMACEUTICAL INDUSTRY PREDICTS IT WILL GRAB A 7 SHARE FROM PROZAC ZOLOFT AND PAXIL IN 1994 AND AN 11 SHARE IN 1995 THE INCUMBENT TRIO IS BUSILY DEFENDING ITS TURF IN PART BY RINGING UP BUSINESS FROM NEW DEPRESSION PATIENTS ONLY A THIRD OF ALL PEOPLE WITH SERIOUS DEPRESSION EVER SEEK TREATMENT AND EVEN FEWER ARE PROPERLY DIAGNOSED ACCORDING TO US GOVERNMENT DATA THE DRUG MAKERS ARE DOING EVERYTHING THEY CAN TO BRING UP THOSE NUMBERS AND THEIR SALES PFIZER RECENTLY BEGAN FLOODING PRIMARYCARE DOCTORS WITH QUESTIONNAIRES ASKING PATIENTS IF THEY HAVE THE NINE TELLTALE SIGNS OF DEPRESSION LILLY BORROWING A TACTIC FROM PUBLIC BLOODPRESSURE DRIVES IS SPONSORING CAMPAIGNS TO SCREEN FOR DEPRESSION IN MALLS SCHOOLS AND OTHER PUBLIC PLACES LILLY IS TRYING TO STAY AHEAD BY PUSHING INTO ENTIRELY NEW MARKETS IT WON PRELIMINARY FDA APPROVAL IN JULY TO MARKET PROZAC FOR OBSESSIVECOMPULSIVE DISORDER OR OCD FEW DRUGS HAVE FORMAL APPROVAL FOR THE DISORDER ALTHOUGH DRUG COMPANIES BELIEVE THE DISORDER MAY AFFECT AS MANY AS FIVE MILLION AMERICANS LILLY ALSO HAS A LONGSTALLED APPLICATION TO MARKET PROZAC UNDER ANOTHER NAME TO TREAT OBESITY PFIZER IS SEEKING APPROVAL TO MARKET ZOLOFT FOR OCD AND IS STUDYING THE DRUG'S USE FOR OBESITY PANIC ATTACKS AND PREMENSTRUAL SYNDROME DEPRESSION IS STILL GOING TO BE OUR KEY AND OUR EMPHASIS SAYS JAMES LEE JUNG THE PFIZER PRODUCT MANAGER OVERSEEING ZOLOFT YOU CAN MORE THAN DOUBLE THE NUMBER OF PATIENTS IF EVERYONE WHO NEEDS TO BE TREATED GETS TREATED 9312290111 931229 FLORIDA WIDENS INSURANCESALES PROBE TO NEW YORK LIFE POSSIBLY PRUDENTIAL BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL FLORIDA OFFICIALS HAVE BROADENED THEIR INVESTIGATION OF LIFEINSURANCE SALES PRACTICES TO INCLUDE NEW YORK LIFE INSURANCE CO AND POSSIBLY PRUDENTIAL INSURANCE CO OF AMERICA BUT THE OFFICIALS SAID THEY HAVE NO EVIDENCE THAT THE QUESTIONABLE PRACTICES ARE AS WIDESPREAD AS THOSE BY METROPOLITAN LIFE INSURANCE CO SINCE AUGUST THE FLORIDA INSURANCE DEPARTMENT HAS BEEN INVESTIGATING MET LIFE REGARDING ALLEGATIONS THAT AGENTS IN ITS TAMPA SALES OFFICE MISLED CUSTOMERS INTO BUYING LIFE INSURANCE THE DEPARTMENT IS NOW LOOKING INTO NEW YORK LIFE AFTER THE COMPANY SAID ONE OF ITS AGENTS APPEARED TO BE ENGAGING IN THE SAME TACTICS USED BY MET LIFE AS WITH THE MET LIFE AGENTS A NEW YORK LIFE AGENT IN TARPON SPRINGS SENT A LETTER TO PROSPECTIVE CUSTOMERS THAT PROMOTED LIFE INSURANCE AS A RETIREMENT ACCOUNT WITHOUT EVER MENTIONING INSURANCE A PITCH THAT VIOLATES INSURANCEDISCLOSURE RULES ALTHOUGH LIFE INSURANCE CARRIES AN INVESTMENT FEATURE FINANCIAL PLANNERS SAY IT IS AN INAPPROPRIATE AND EXTREMELY EXPENSIVE FORM OF SAVINGS IT WAS ESSENTIALLY VERBATIM TO THE MET LIFE LETTER SAID DAN SUMNER ASSISTANT GENERAL COUNSEL OF THE FLORIDA INSURANCE DEPARTMENT AND AGAIN AS WITH MET LIFE THE LETTER WAS AIMED AT REGISTERED NURSES NEW YORK LIFE SAID IT ALERTED REGULATORS TO THE LETTER AS SOON AS IT CAME TO ITS ATTENTION THE COMPANY SAID THE AGENT WHOM IT REFUSED TO IDENTIFY SENT 4000 COPIES OF THE LETTER TO PROSPECTS IN FLORIDA BUT MADE NO SALES NEW YORK LIFE SAID THE AGENT CONTINUES TO WORK FOR THE COMPANY IT ALSO SAID IT IS COOPERATING WITH THE STATE'S INVESTIGATION IN ADDITION NEW YORK LIFE HAS HIRED A MIAMI LAW FIRM STEEL HECTOR & DAVIS TO INVESTIGATE THE COMPANY'S MARKETING PRACTICES THROUGHOUT FLORIDA AND TO DETERMINE WHETHER THE MATTER IS BROADER THAN A SINGLE AGENT NEVERTHELESS THE COMPANY BELIEVES THE SITUATION IS ISOLATED AS FAR AS I KNOW THIS WAS JUST A SINGLE AGENT SAID NEW YORK LIFE SPOKESMAN JIM TOLVE MEANWHILE THE STATE'S OFFICE OF ATTORNEY GENERAL HAS RECEIVED A QUESTIONABLE PROMOTIONAL LETTER THAT APPEARED TO HAVE BEEN SENT BY A PRUDENTIAL AGENT THE ATTORNEY GENERAL'S OFFICE DIDN'T IDENTIFY THE SOURCE OF THE LETTER I GOT A SIMILAR LETTER SAID STEVE PARTON ASSISTANT ATTORNEY GENERAL WE MAY VERY WELL LOOK INTO PRUDENTIAL HE ADDED HOWEVER THAT ANY QUESTIONS ABOUT PRUDENTIAL WILL HAVE TO WAIT UNTIL AFTER HIS OFFICE FINISHES ITS INVESTIGATION OF MET LIFE THE ATTORNEY GENERAL IS CONDUCTING A JOINT INVESTIGATION INTO MET LIFE WITH THE INSURANCE DEPARTMENT AN INSURANCEDEPARTMENT SPOKESMAN SAID HE DIDN'T HAVE ANY INFORMATION ON PRUDENTIAL BUT THAT DOESN'T MEAN WE WILL NOT LOOK INTO IT IN THE FUTURE THE SPOKESMAN SAID A PRUDENTIAL SPOKESMAN SAID THE COMPANY IS NOT AWARE OF ANY PROBLEMS IN FLORIDA OUR PRACTICE IS TO MAKE SURE THAT WHEN PEOPLE BUY SOMETHING THEY KNOW WHAT THEY'RE BUYING SAID THE SPOKESMAN RICK MATTHEWS PRUDENTIAL METROPOLITAN AND NEW YORK LIFE ARE THREE OF THE BIGGEST LIFE INSURERS IN THE COUNTRY LAST YEAR PRUDENTIAL COLLECTED 546 BILLION OF LIFEINSURANCE PREMIUMS COMPARED WITH 401 BILLION FOR METROPOLITAN AND 37 BILLION FOR NEW YORK LIFE ACCORDING TO COMPANY REPORTS EARLIER THIS WEEK MET LIFE DISMISSED SEVEN OFFICIALS TIED TO THE FLORIDA MATTER AND WIDENED A REFUND PROGRAM TO ANOTHER 45000 CUSTOMERS WHO MAY HAVE BOUGHT INSURANCE BASED ON THE QUESTIONABLE SALES METHODS THE COMPANY HAS ALREADY REFUNDED 11 MILLION TO 6000 CUSTOMERS WHO BOUGHT INSURANCE FROM THE TAMPA OFFICE FLORIDA OFFICIALS SAID THEY HAVE NO INFORMATION INDICATING THAT OTHER COMPANIES HAVE BEEN AS DEEPLY INVOLVED IN QUESTIONABLE PROMOTIONS AS MET THE COMMISSION HAS NOT SEEN ANY EVIDENCE YET THAT THIS SORT OF DECEPTIVE PRACTICE IS AS WIDESPREAD IN THE INDUSTRY SAID THE INSURANCEDEPARTMENT SPOKESMAN IN ADDITION TO FLORIDA 12 STATES ARE INVESTIGATING MET LIFE'S SALES PRACTICES INVESTIGATORS BELIEVE THE NEW YORK LIFE AGENT MAY HAVE BEEN DELIBERATELY COPYING THE EXTREMELY LUCRATIVE METHODS OF MET LIFE'S TAMPA OFFICE WHERE OFFICE MANAGER RICK URSO EARNED 946000 LAST YEAR SELLING LIFE INSURANCE TO NURSES AS A RETIREMENT ACCOUNT RON PARRY A KENTUCKY ATTORNEY WHO REPRESENTS MET POLICYHOLDERS IN A LAWSUIT AGAINST THE COMPANY SAID MR URSO'S SUCCESS LED TO COPYCATTING HIS LAWSUIT FILED IN FEDERAL COURT IN TAMPA IS BROUGHT ON BEHALF OF BEAUTICIANS XRAY TECHNICIANS SMALLBUSINESS OWNERS AS WELL AS NURSES WHO BOUGHT INSURANCE FROM MET LIFE 9312290110 931229 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 5/8 LOW 2 3/4 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 322 30 TO 119 DAYS 324 120 TO 149 DAYS 326 150 TO 179 DAYS 328 180 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 335 30 DAYS 332 60 DAYS 332 90 DAYS CERTIFICATES OF DEPOSIT 261 ONE MONTH 264 TWO MONTHS 266 THREE MONTHS 280 SIX MONTHS 304 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 325 ONE MONTH 325 THREE MONTHS 335 SIX MONTHS BANKERS ACCEPTANCES 330 30 DAYS 320 60 DAYS 320 90 DAYS 323 120 DAYS 326 150 DAYS 330 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS CLOSED DUE TO HOLIDAY LONDON INTERBANK OFFERED RATES LIBOR CLOSED DUE TO HOLIDAY FOREIGN PRIME RATES CANADA 550 GERMANY 613 JAPAN 3 SWITZERLAND 750 BRITAIN 550 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY DECEMBER 27 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 306 13 WEEKS 321 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 701 60 DAYS 710 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 697 60 DAYS 707 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 272 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9312290109 931229 INTERNATIONAL WORLD WIRE COMPILED BY JEFF SUTHERLAND CHINA SAID THE INFLATION RATE FOR MAJOR CITIES WAS NEARLY 20 THIS YEAR AND THE GOVERNMENT AGAIN ORDERED URGENT ACTION TO BRING DOWN SOARING GRAIN PRICES THAT THREATEN ECONOMIC REFORMS VICE PREMIER ZHU RONGJI THE NATION'S ECONOMIC CZAR SAID RISING PRICES FOR GRAIN AND EDIBLE OILS MUST BE IMMEDIATELY LOWERED ACCORDING TO THE STATERUN CHINA DAILY HE REITERATED A CALL TO LOWER PRICES AT STATEOWNED STORES GRAIN PRICES HAVE SOARED MORE THAN 30 SINCE NOVEMBER IN SOUTHERN GUANGDONG PROVINCE AND OTHER COASTAL REGIONS THE RISING PRICES HAVE BEEN BLAMED ON SPECULATION WITH PEASANTS WITHHOLDING GRAIN FROM THE MARKET UNTIL NEXT YEAR IN EXPECTATION OF MAKING MORE MONEY MEANWHILE THE GOVERNMENT SAID THE COST OF LIVING IN 1993 ROSE 145 FOR THE ENTIRE NATION BUT NEARLY 20 FOR 35 MEDIUM AND LARGE CITIES OFFICIALS FEAR THAT WORSENING INFLATION COULD CRIPPLE NEW MARKET REFORMS PLANNED NEXT YEAR INCLUDING THE REORGANIZATION OF THE BANKING TAX AND CURRENCYEXCHANGE SYSTEMS RUSSIA'S HEAD OF PRIVATIZATION CALLING THE MOVEMENT TO PRIVATE OWNERSHIP A SUCCESS SAID MORE THAN 55 MILLION RUSSIANS NOW OWN SHARES IN SOME SORT OF BUSINESS DEPUTY PRIME MINISTER ANATOLY CHUBAIS SAID ALMOST 70 OF THE NATION'S SMALL AND MEDIUMSIZE BUSINESSES ARE IN PRIVATE HANDS AND THE PRIVATIZATION PROCESS HAS BEEN LAUNCHED AT 11000 LARGE STATEOWNED ENTERPRISES DESPITE POLITICAL AND BUREAUCRATIC OPPOSITION PRIVATIZATION HAS MOVED FORWARD BECAUSE IT HAS BEEN UNDERSTOOD ACCEPTED AND SUPPORTED BY THE PEOPLE HE SAID THE VALUE OF FOREIGN INVESTMENT IN INDONESIA DROPPED 22 IN 1993 FROM A YEAR EARLIER WHILE THE VALUE OF DOMESTIC APPLICATIONS INCREASED 34 THE GOVERNMENT HAS APPROVED 313 FOREIGNINVESTMENT PROJECTS THIS YEAR TOTALING 804 BILLION COMPARED WITH 305 PROJECTS TOTALING 103 BILLION IN 1992 INTEREST IN DOMESTIC INVESTMENT WHICH DECLINED SHARPLY IN 1991 AND 1992 ROSE THIS YEAR IN RESPONSE TO BUOYANT ECONOMIC CONDITIONS BUT FOREIGN INTEREST HAS STAGNATED AT A TIME WHEN INDONESIA MUST KEEP DRAWING OVERSEAS INVESTMENT TO CREATE JOBS FOR A LABOR FORCE THAT IS GROWING BY ABOUT 23 MILLION PEOPLE A YEAR THAILAND IS READY TO RELAX CONTROLS ON FOREIGNEXCHANGE TRANSFERS AND EASE OFFSHORE BANKING LAWS THAILAND'S FINANCE MINISTER SAID THE CHANGES ARE PART OF A FOURPOINT FINANCIAL LIBERALIZATION PACKAGE TO BE PROPOSED IN EARLY JANUARY THE PACKAGE INCLUDES A MEASURE THAT WOULD ALLOW FOREIGN BANKS WITH THAI OFFSHORE BANKING LICENSES TO SET UP BRANCH OFFICES IN CITIES OUTSIDE BANGKOK THE BRANCHES WOULD BE ALLOWED TO BORROW AND LEND BAHT BUT WITH SOME RESTRICTIONS GERMANY'S ECONOMICS MINISTER GUENTHER REXRODT SAID IT IS BECOMING EVER CLEARER THAT THE GERMAN ECONOMY HAS STARTED TO RECOVER AND HE EXPECTS THE RECOVERY PROCESS TO STRENGTHEN IN 1994 SOME GERMAN INSTITUTIONS HOWEVER WERE MORE SUBDUED THE GERMAN SAVINGS BANK ASSOCIATION FOR ONE SAID CHANCES FOR A RECOVERY HAVE IMPROVED BUT WARNED THAT A FULL RECOVERY ISN'T TO BE EXPECTED BEFORE THE MIDDLE OF NEXT YEAR AND EVEN THEN WILL BE RELATIVELY WEAK AND A SURVEY FOUND THAT OF 41 CORPORATE ASSOCIATIONS WHICH EACH REPRESENT A DIFFERENT SECTOR OF THE ECONOMY ONLY A QUARTER EXPECT PRODUCTION TO INCREASE NEXT YEAR IN 35 OF THE 41 SECTORS EMPLOYMENT IS EXPECTED TO FALL FURTHER AS COMPANIES ATTEMPT TO CUT COSTS WHILE INVESTMENT IS ALSO EXPECTED TO DROP MR REXRODT SAID THE MAIN THREAT TO A WESTERN GERMAN RECOVERY WAS THE ECONOMY'S STRUCTURAL DISTORTIONS A BLANKET TERM REFERRING TO OVERTAXATION OVERREGULATION AND TOOHIGH WAGES VIOLENT CRIMES ARE UP SHARPLY IN CHINA THE OFFICIAL CHINA DAILY REPORTED THE NEWSPAPER QUOTED A CHINESE OFFICIAL WHO SAID SUCH CRIMES ROSE 175 IN THE FIRST 10 MONTHS OF 1993 FROM A YEAR EARLIER WHILE THE OVERALL CRIME RATE WAS VIRTUALLY UNCHANGED THE AVERAGE JAPANESE COUPLE TALKS ONE HOUR AND FIFTYONE MINUTES A DAY FAR HIGHER THAN EXPECTED A SURVEY BY TOKYO MUTUAL LIFE INSURANCE SHOWED BUT WIVES SURVEYED COMPLAINED THAT THEY DID MOST OF THE TALKING AND THAT THEIR HUSBANDS MERELY GRUNTED IN AGREEMENT 9312290108 931229 FOREIGN EXCHANGE DOLLAR SLIPS AGAINST THE MARK AND YEN DESPITE CLIMB IN CONSUMER CONFIDENCE BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK A RISING TIDE OF US CONSUMER CONFIDENCE FAILED TO IMPRESS THE MARKET YESTERDAY LEAVING THE DOLLAR SLIGHTLY LOWER AGAINST THE MARK AND THE YEN AFTER ANOTHER VERY QUIET SESSION BUT THE POUND SHOWED SOME SURPRISING STRENGTH GAINING GROUND AGAINST THE DOLLAR AND THE MARK EVEN WHILE BRITISH MARKETS TOOK THE DAY OFF LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16990 MARKS DOWN FROM 17013 MARKS LATE MONDAY THE US CURRENCY ALSO WAS CHANGING HANDS AT 11136 YEN OFF FROM 11145 YEN STERLING WAS TRADING AT 15080 DOLLARS UP FROM 15045 DOLLARS AT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11165 YEN AND 17040 MARKS WITH MANY CURRENCY TRADING DESKS RUNNING WITH SKELETON STAFFS TRADERS NOTED THAT MOST PLAYERS WERE RELUCTANT TO PLACE ANY LARGE BETS LEAVING THE DOLLAR TO DRIFT AIMLESSLY THROUGH VERY THIN TECHNICAL RANGES FOR MOST OF THE DAY EVEN NEWS OF A SURPRISINGLY LARGE INCREASE IN US CONSUMER CONFIDENCE FAILED TO SPUR THE MARKET INTO DECISIVE ACTION TRADERS NOTED AS A FEEBLE DOLLAR RALLY FELL VICTIM TO PROFITTAKING FROM THE START THE CONFERENCE BOARD A NEW YORK ECONOMIC RESEARCH GROUP SAID THAT ITS INDEX OF CONSUMER CONFIDENCE ROSE TO 802 IN DECEMBER FROM A REVISED 712 IN NOVEMBER THE BOARD NOTED THAT THE INDEX HAS RISEN 20 POINTS SINCE OCTOBER AND NOW STANDS AT A LEVEL HISTORICALLY ASSOCIATED WITH A REASONABLY COMFORTABLE PACE OF ECONOMIC GROWTH BUT TRADERS WERE LESS IMPRESSED WITH THE RESULT USING IT AS AN EXCUSE TO SELL SOME OF THE DOLLARS THEY HAD ACCUMULATED IN EXPECTATIONS OF A MORE LENGTHY RALLY THAT MANY HAD HOPED WOULD LEAVE IT AROUND 180 MARKS BY THE END OF THIS YEAR THE PEOPLE IN THE MARKET RIGHT NOW HAVE MORE OF AN INTEREST TO SELL DOLLARS ON RALLIES THAN BUY DOLLARS ON DIPS SAID JIM BLACKWELDER A VICE PRESIDENT AT FIRST UNION BANK OF NORTH CAROLINA CHARLOTTE PEOPLE ARE A LITTLE DISAPPOINTED THAT WE'RE NOT AT 175180 MARKS ADDED GARY SAKAMOTO A VICE PRESIDENT AT NATIONAL WESTMINSTER BANK PLC IN NEW YORK TRADERS ALSO WERE SOMEWHAT DISAPPOINTED THAT THE DOLLAR COULDN'T MUSTER MORE STRENGTH AGAINST THE YEN DESPITE NEW SIGNS OF JAPANESE ECONOMIC WEAKNESS AND MORE BICKERING IN THE JAPANESE GOVERNMENT OVER HOW TO CORRECT THE SITUATION JAPANESE FINANCE MINISTER HIROHISA FUJII SAID THERE'S NO CONSENSUS WITHIN THE JAPANESE CABINET OVER THE NEED FOR AN EARLY INCOME TAX CUT A MEASURE JAPANESE BUSINESS LEADERS HAVE BEEN PROMOTING FOR SEVERAL MONTHS AS A WAY TO AID THE STRUGGLING ECONOMY THE COMMENT CONTRADICTED AN EARLIER STATEMENT FROM THE CHIEF CABINET SECRETARY INDICATING THAT CONSENSUS HAD BEEN REACHED AND FOLLOWED A REPORT SHOWING THAT JAPAN'S UNEMPLOYMENT RATE ROSE TO 28 IN NOVEMBER ITS HIGHEST LEVEL IN MORE THAN FIVE YEARS BUT DESPITE JAPAN'S INTERNAL PROBLEMS TRADERS NOTED THAT GROWING SIGNS OF PROBLEMS WITH THE USJAPAN TRADE TALKS ARE LIMITING THE DOLLAR'S RISE AS SOME TRADERS FEAR THAT THE US COULD RETURN TO ISSUING CALLS FOR A HIGHER YEN AS A WAY TO FORCE JAPAN INTO TRADE CONCESSIONS A US TRADE OFFICIAL SAID THE US AND JAPAN ARE STILL FAR APART OVER TERMS OF OPENING JAPAN'S AUTO AND AUTOPARTS MARKETS THAT COMMENT FOLLOWED AN ACCUSATION MONDAY FROM US TRADE REPRESENTATIVE MICKEY KANTOR WHO SAID JAPAN IS RENEGING ON ITS COMMITMENTS TO INCREASE JAPAN'S USE OF IMPORTED COMPUTER CHIPS PEOPLE ARE WONDERING IS THE US GOING TO START WAVING THE BIG STICK' BY CALLING FOR A HIGHER YEN SAID MR BLACKWELDER THAT'S GOT THE MARKET A LITTLE CONCERNED HERE 9312290107 931229 DETROIT EDISON FIRE SHUTS DOWN PLANT MAY HURT '94 NET BY OSCAR SURIS AND ANDREA PUCHALSKY STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT DETROIT EDISON CO SAID A CHRISTMAS DAY FIRE AT ITS FERMI 2 NUCLEAR PLANT WILL FORCE THE PLANT TO SHUT DOWN FOR SEVERAL MONTHS AND COULD HURT EARNINGS NEXT YEAR THE FIRE CAUSED NO RELEASE OF RADIOACTIVITY FROM THE PLANT'S REACTOR BUT IT DID TRIGGER AN EMERGENCYREACTOR SHUTDOWN THAT RESULTED IN DAMAGE TO THE PLANT'S TURBINE GENERATOR THE COMPANY SAID YESTERDAY THE DAMAGE IS EXPECTED TO LEAVE THE UTILITY'S CHEAPEST SOURCE OF POWER OUT OF COMMISSION FOR SEVERAL MONTHS THE COMPANY DIDN'T SAY HOW LONG THE REPAIRS WILL TAKE THE NUCLEAR REGULATORY COMMISSION IS INVESTIGATING THE INCIDENT BUT CALLED THE ACTION ROUTINE AND SAID THERE WAS NO DANGER TO THE PUBLIC THE COMPANY SAID THE SHUTDOWN MAKES IT UNLIKELY THAT THE UTILITY WILL MEET POWERCAPACITY TARGETS FOR NEXT YEAR THAT WOULD HAVE ENTITLED IT TO CHARGE HIGHER RATES UNDER THE TERMS OF A RATE PLAN APPROVED BY MICHIGAN'S PUBLIC SERVICES COMMISSION IF THE DROP IN REVENUE IS STEEP ENOUGH THE SHORTFALL COULD ALSO DEPRESS THE UTILITY'S EARNINGS AND CASH FLOW NEXT YEAR THE SPOKESMAN ADDED THE LONGER IT TAKES TO FIX THE FERMI 2 PLANT THE MORE DETROIT EDISON WILL HAVE TO RELY ON MORE EXPENSIVE COALBURNING PLANTS AND ON FUELS PURCHASED FROM OUTSIDE SOURCES UNDER MICHIGAN REGULATORY RULES IT WILL BE MORE THAN A YEAR BEFORE DETROIT EDISON CAN RECOVER THESE HIGHER FUEL COSTS BY PASSING RATE INCREASES ON TO CONSUMERS WE WOULD HAVE TO EAT THE COSTS ON A SHORTTERM BASIS THE UTILITY'S SPOKESMAN SAID BUT WE DON'T KNOW AT THIS POINT FOR HOW LONG OR FOR HOW MUCH THAT IS GOING TO BE THIS YEAR ANALYSTS HAD ESTIMATED DETROIT EDISON WOULD REPORT EARNINGS OF 320 A SHARE FOR THE YEAR NEARLY 16 LESS THAN THE UTILITY'S 1992 EARNINGS OF 379 A SHARE TRADING ON DETROIT EDISON STOCK WAS BRIEFLY HALTED YESTERDAY IN ADVANCE OF A COMPANY STATEMENT THE STOCK CLOSED AT 30375 A SHARE UNCHANGED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE FERMI 2 PLANT HAS HAD A HISTORY OF ACCIDENTS AND MANAGEMENT PROBLEMS THAT IN 1988 CAUSED THE NRC TO THREATEN TO SHUT THE PLANT DOWN BUT DETROIT EDISON SEEMED TO PUT THE WORST OF THE PROBLEMS AT FERMI 2 BEHIND IT IN 1989 AND THE NRC REMOVED THE FACILITY FROM ITS LIST OF TROUBLED PLANTS IN THAT YEAR THE RESULTS OF THE NRC'S INVESTIGATION INTO THE LATEST INCIDENT WILL PLAY A ROLE IN DETROIT EDISON'S EFFORTS TO OFFSET THE COSTS OF THE SHUTDOWN WITH HIGHER RATES IN 1995 WHEN STATE REGULATORS EVALUATE DETROIT EDISON'S CLAIMS FOR 1994 FUELREPLACEMENT COSTS INCLUDING THOSE COSTS ASSOCIATED WITH THE FERMI 2 SHUTDOWN REGULATORS WILL WEIGH WHETHER DETROIT EDISON HANDLED THE INCIDENT PRUDENTLY AND PROPERLY IF THE NRC AND MICHIGAN OFFICIALS CONCLUDE THAT DETROIT EDISON HAS MISHANDLED THE CHRISTMAS EMERGENCY SHAREHOLDERS COULD GET STUCK WITH ALL OR SOME OF THE COSTS UNDER MICHIGAN RULES 9312290106 931229 TEXAS JOURNAL LETTERS TO THE EDITOR HIGHSPEED LESSONS WITH THE DEMISE OF THE TEXAS TGV PROJECT AT HAND ONE MUST WONDER WHAT WENT WRONG IT IS TOO EASY TO SAY THAT CITIZENS AND POTENTIAL INVESTORS DESERTED HIGHSPEED RAIL IN TEXAS FROM THE BEGINNING TEXAS TGV COULD NOT OR WOULD NOT RECOGNIZE THAT ONE COULD BE A PROPONENT OF HIGHSPEED RAIL AND AT THE SAME TIME OPPOSE THE TGV PROJECT THE PROPOSED TEXAS TGV PROJECT HAS ALWAYS BEEN ONLY ONE OF MANY HIGHSPEED RAIL OPTIONS WHEN THE STATE AWARDED AN EXCLUSIVE 50YEAR MONOPOLY TO TEXAS TGV ALL OTHER HIGHSPEED RAIL OPTIONS WERE LEGALLY FORECLOSED HOWEVER TIME AND CONTINUED SCRUTINY ULTIMATELY DEFINED THE TEXAS TGV OPTION AS A POOR ONE THERE ARE LESSONS TO BE LEARNED FROM THE TGV EXPERIENCE BY BOTH THE PUBLIC AND PRIVATE SECTOR DEVELOP A RAIL MASTER PLAN THAT ADDRESSES NEED AND THAT IMPLEMENTS AN INCREMENTAL APPROACH THAT WILL SERVE ALL TEXANS INDUCE RIDERSHIP AND MINIMIZE PUBLIC SUBSIDY BE OPEN AND HONEST WITH ALL CITIZENS AVOID CONFLICTS OF INTEREST NEVER SIDESTEP PUBLIC SAFEGUARDS DEADLINES OR MILESTONES DON'T PROMISE MORE THAN CAN BE DELIVERED MAXIMIZE USE OF EXISTING RAIL AND HIGHWAY RIGHTS OF WAY RESCIND OR DRASTICALLY REVISE THE TEXAS HIGH SPEED RAIL ACT IN THE END THE LEADERSHIP OF TGV PARTNER MORRISON KNUDSEN CORP ACTED SWIFTLY AND DECISIVELY TO PROTECT ITS STOCKHOLDERS THE CITIZENS OF TEXAS SHOULD EXPECT NO LESS FROM THEIR STATE LEADERS TO LINGER AT THIS STAGE WILL LESSEN THE CHANCE OF SUCCESS WHEN AND IF A WORTHY RAIL PROJECT DOES COME OUR WAY ENOUGH IS ENOUGH LET'S MOVE FORWARD PHONE CALLS BY GOV ANN RICHARDS TO THE AUTHORITY APPOINTEES AND THE ATTORNEY GENERAL ARE ALL THAT IS REQUIRED 9312290104 931229 COMMODITIES GOLD SILVER FUTURES REFLECT EFFECTS OF SELLING BY BANKS DEALERS SHORT' POSITIONS INCREASE BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL GOLD AND SILVER FUTURES PRICES DRIFTED LOWER AS TRADERS BECAME UNEASY ABOUT SELLING BY BANKS AND GOLD DEALERS IN THIN POSTHOLIDAY TRADING AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS DOWN 60 CENTS TO 38850 AN OUNCE WHILE THE PRICE OF THE MARCH SILVER FUTURES CONTRACT FELL 15 CENTS TO 5112 CENTS AN OUNCE A COMMITMENTOFTRADERS REPORT RELEASED BY THE COMMODITY FUTURES TRADING COMMISSION SHOWED GROWING LIQUIDATION OF LONG POSITIONS OR WAGERS THAT GOLD PRICES WILL RISE BY COMMERCIAL INVESTORS SUCH AS BANKS AND DEALERS AT THE SAME TIME THESE COMMERCIAL TRADERS INCREASED THEIR HOLDINGS OF SHORT POSITIONS OR WAGERS THAT PRICES WILL FALL THE REPORT SHOWED BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER INC SAID MUCH OF THIS SELLING ACTIVITY WAS PERFORMED ON BEHALF OF PRECIOUSMETALS MINING COMPANIES WHICH ARE SEEKING TO LOCK IN SALES OF THE GOLD THEY PRODUCE AT TODAY'S LEVELS IT'S NOT A PARTICULARLY GOOD SIGN FOR GOLD MR SAVAIKO SAID THESE SEGMENTS OF THE MARKET ARE CONCERNED THE MARKET HAS GONE UP TOO FAR TOO FAST IN ADDITION TO THE TRADING OF THESE COMMERCIAL INTERESTS THERE HAS BEEN SOME PROFITTAKING LATELY BY SOCALLED PHYSICAL INVESTORS WHO BUY AND SELL ACTUAL GOLD OR SILVER BULLION AS OPPOSED TO FUTURES CONTRACTS THESE INVESTORS ESPECIALLY MIDDLE EASTERN INVESTOR SYNDICATES PLAYED A BIG PART IN THE RECENT RALLY OF PRECIOUSMETALS PRICES BY PROVIDING UNDERLYING SUPPORT AS FUTURES PRICES ROSE ANALYSTS SAID BUT NOW THESE INVESTORS WHO BOUGHT AS GOLD PRICES ROSE THROUGH THE 360 AND 370ANOUNCE LEVELS ARE SELLING TO LOCK IN PROFITS THE OVERALL TONE OF THE PRECIOUSMETALS MARKET NEVERTHELESS REMAINS BULLISH WITH MANY ANALYSTS PREDICTING THAT GOLD WILL RISE TO AT LEAST 400 AN OUNCE BY EARLY NEXT YEAR INDICATIONS OF IMPROVING ECONOMIC ACTIVITY IN THE US WHICH HAVE BEEN ABUNDANT IN THE PAST SIX MONTHS TEND TO HELP PRECIOUSMETALS MARKETS BUT THE LACK OF INFLATION IN THE ECONOMY TROUBLES MANY GOLD AND SILVER SPECULATORS GENERALLY INVESTORS BEGIN BUYING GOLD WHEN THEY ARE WORRIED THAT INFLATION MAY DEVALUE OTHER ASSETS AND HURT SUCH PAPER INVESTMENTS AS STOCKS THE LONE BRIGHT SPOT IN PRECIOUSMETALS MARKETS YESTERDAY WAS THE PRICE OF PLATINUM THE ACTIVELY TRADED APRIL PLATINUM CONTRACT ROSE 30 CENTS TO 38930 AN OUNCE ANALYSTS SAID PLATINUM'S MOVE OCCURRED LARGELY BECAUSE TRADERS ARE SEEKING TO BID THE COMMODITY BACK INTO ITS HISTORIC ALIGNMENT WITH GOLD THROUGH THE YEARS THE PRICE OF PLATINUM TYPICALLY HAS REMAINED HIGHER THAN THAT OF GOLD BUT THIS YEAR PLATINUM'S PRICE FELL BELOW GOLD'S PRICE IN PART BECAUSE OF THE RECESSION IN ASIA THE BIGGEST INDUSTRIAL CONSUMER OF PLATINUM IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS CORN FUTURES PRICES CONTINUED THEIR TREND OF SETTING NEW CONTRACT HIGHS BECAUSE OF THE SHORT SUPPLY OF HIGHQUALITY US CORN AT THE CHICAGO BOARD OF TRADE CORN FOR MARCH DELIVERY REACHED ANOTHER HIGH OF 30275 A BUSHEL RISING ONE CENT ON THE DAY LAST SUMMER'S WEAK HARVEST HAS FORCED TRADERS TO BID GRAIN FUTURES PRICES HIGHER ANALYSTS SAY THE MARKET MUST REACH A LEVEL AT WHICH CORN BECOMES TOO EXPENSIVE TO USE AS FEED FOR LIVESTOCK TO ENSURE THAT ENOUGH OF THE GRAIN WILL BE LEFT FOR HUMAN CONSUMPTION NEXT YEAR ENERGY CRUDEOIL PRICES SLID WHILE PETROLEUMPRODUCT FUTURES ENDED MIXED IN TECHNICALLY INSPIRED TRADING MARKET PARTICIPANTS SAID THERE WAS LITTLE NEWS TO DRIVE PRICES IN EITHER DIRECTION TRADERS GENERALLY IGNORED COMMENTS FROM YEMEN AND EGYPT TWO RELATIVELY SMALL OILPRODUCING NATIONS THAT THEY SUPPORTED OMAN'S EFFORTS TO LINE UP PETROLEUM PRODUCERS OUTSIDE OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IN A PRODUCTIONCUTTING PLAN NORWAY FOR ONE SAID IT WOULDN'T PARTICIPATE ON THE NEW YORK MERCANTILE EXCHANGE LIGHT SWEET CRUDE OIL FOR FEBRUARY DELIVERY FELL TWO CENTS A BARREL TO SETTLE AT 1411 THE CONTRACT TRADED AS LOW AS 1396 GASOLINE FUTURES ROSE SHARPLY AFTER A SELLOFF ON MONDAY HEATINGOIL FUTURES FELL DESPITE THE CONTINUED FREEZE IN MUCH OF THE US TRADERS SAID MANY PLAYERS SOLD JANUARY HEATING OIL AND BOUGHT GASOLINE BECAUSE OF THE WIDE DISPARITY BETWEEN THE TWO CONTRACTS MEANWHILE THE COLD WEATHER IN MUCH OF THE COUNTRY WASN'T ENOUGH TO KEEP NATURALGAS PRICES RALLYING TRADERS SAID ONE REASON WAS THAT TEMPERATURES WARMED ON THE GULF COAST CURBING DEMAND NATIONALLY 9312290103 931229 EASTMAN CHEMICAL JOINS INDEX NEW YORK STANDARD & POOR'S CORP SAID CHEMICALS MANUFACTURER EASTMAN CHEMICAL CO WILL BE ADDED TO THE S&P 500STOCK INDEX AFTER THE CLOSE OF TRADING MONDAY EASTMAN CHEMICAL IS BEING SPUN OFF FROM EASTMAN KODAK CO A ROCHESTER NY MAKER OF PHOTOGRAPHIC SUPPLIES AND CHEMICALS EASTMAN CHEMICAL WILL BE ADDED TO THE S&P 500 CHEMICALS INDUSTRY GROUP THE COMPANY IS BASED IN KINGSPORT TENN S&P WILL REMOVE NL INDUSTRIES INC FROM ITS 500SHARE INDEX THE HOUSTON CHEMICALS MAKER ONE OF THE SMALLER COMPANIES IN THE CHEMICALS INDUSTRY GROUP ACCOUNTS FOR LESS THAN 1 OF THE GROUP'S MARKET VALUE S&P SAID 9312290101 931229 MARKETING & MEDIA ADVERTISING ADVERTISERS ARE AT LAST TREATING BABY BOOMERS LIKE GROWNUPS BY KEVIN GOLDMAN PETER PAN WOULD HATE THIS STORY SLOWLY MADISON AVENUE IS ACKNOWLEDGING THAT THE SOCALLED BABYBOOM GENERATION IS COMING OF AGE AND GROWING UP WHAT'S MORE SOME ADVERTISING IS IRREVERENTLY TAUNTING BABY BOOMERS WITH THE NOTION THAT THEIR BEHAVIOR HAS BEGUN TO MIRROR THAT OF THEIR PARENTS EXAMPLES INCLUDE TONGUEINCHEEK ADS FROM DRAMBUIE MANUFACTURED BY HIRAM WALKER & SONS OXYDOL BLEACH FROM PROCTER & GAMBLE LEE JEANS AND CHRYSLER'S LEBARON AUTOMOBILE THE DRAMBUIE ADS SHOW SITUATIONS THAT COULD MAKE AN AVERAGE BABY BOOMER CRINGE A COMMUTER STANDS AT A SUBURBAN TRAIN STATION THE WALL STREET JOURNAL IN ONE HAND AN ATTACHE CASE IN THE OTHER SPLASHED ACROSS THE PHOTO IS THE MESSAGE OH NO WE'RE BECOMING OUR FATHERS INSTEAD OF FRETTING ABOUT SLIPPING INTO MIDDLE AGE THE AD ADVISES BOOMERS TO CELEBRATE YOUR PASSAGE TO ADULTHOOD BY IMBIBING THE AFTERDINNER DRINK AFTER ALL THE AD CONCLUDES IT'S NOT THAT BAD BEING A GROWN UP OXYDOL AND ITS AGENCY SAATCHI & SAATCHI TAKE A SIMILAR TACK IN ADS SHOWING A CHERUBIC YOUNGSTER IN A HIGH CHAIR THE COPY LINE I SWORE I WOULDN'T BE ONE OF THOSE MOMS THAT FREAKED OUT EVERY TIME HER KID GOT A STAIN SO I LIED IN ADDRESSING MIDDLEAGE HEADON OXYDOL AND DRAMBUIE ARE TAKING A 180DEGREE TURN AWAY FROM A STRATEGY TRIED BY OLDSMOBILE IN A CAMPAIGN THAT WAS CRITICALLY WELLRECEIVED YET UNSUCCESSFUL IN 1988 THE GENERAL MOTORS UNIT AND ITS AGENCY LEO BURNETT SOUGHT A LESS STODGY IMAGE WITH THE AD CAMPAIGN THIS IS NOT YOUR FATHER'S OLDSMOBILE EACH AD FEATURED AN ICON FROM THE 1960S RANGING FROM MONTY HALL THE MONEYTHROWING HANDWAVING HOST OF LET'S MAKE A DEAL TO THE BEATLES' RINGO STARR WHO WERE EACH PAIRED IN THE ADS WITH ONE OF THEIR CHILDREN THE SPOTS SHOWED THE CELEBRITY PARENT BEING DRIVEN AWAY IN AN OLDSMOBILE BY THE CHILD OLDS TRIED TO REDEFINE WHAT DRIVING AN OLDS IS LIKE SAYS LILLIAN MARESCH FOUNDER AND PRESIDENT OF GENERATION INSIGHTS A COMMUNICATIONS AND MARKETING CONSULTING FIRM IN MINNEAPOLIS OLDS TRIED TO TAP INTO A BABY BOOMER'S SENSE OF BEING UNIQUE IT DIDN'T WORK SALES ACTUALLY DIPPED SHORTLY AFTER THE CAMPAIGN WAS INTRODUCED OLDS PUT ITS 125MILLION ACCOUNT IN REVIEW AND AFTER A LENGTHY PROCESS BURNETT MANAGED TO RETAIN THE BUSINESS TO BE SURE THE ADS WEREN'T TOTALLY TO BLAME THE AUTOS WERE CONSIDERED TOO HIGHPRICED FOR YOUNGER BUYERS AND DOMESTIC AUTO SALES IN GENERAL WERE SOFT IN THE LATE 1980S NEVERTHELESS THE LESSON WASN'T LOST ON OTHER MARKETERS TRYING TO PITCH PRODUCTS TO BABY BOOMERS IN THEIR 30S AND EARLY 40S OLDSMOBILE'S TACTIC OF OUTRIGHT REBELLION HAD BOMBED A LOT OF WELLESTABLISHED BRANDS IN THE LIQUOR CATEGORY HAVE THE SAME PROBLEMTHEY ARE ASSOCIATED WITH AN OLDER AUDIENCE SAYS RON BERGER A PARTNER WITH MESSNER VETERE BERGER MCNAMEE SCHMETTERER WHICH PRODUCED THE DRAMBUIE PRINT ADS INSTEAD OF SCARING PEOPLE ABOUT MIDDLEAGE WE THOUGHT WE SHOULD POINT OUT IN A GOODNATURED FASHION ALL THE THINGS ASSOCIATED WITH THEIR PARENTS' GENERATION SO THERE ARE ADS SHOWING AN EXHAUSTED DAD DRESSED AS SANTA CLAUS PARENTS COOING AT THEIR CHILD IN A BABY CARRIAGE AND A MOM BAKING COOKIES THE MESSAGE IS HERE ARE SITUATIONS THAT YOU NEVER PICTURED YOURSELF IN SAYS MR BERGER WELL NOW THAT YOU'RE IN THESE SITUATIONS DON'T FREAK OUT WE OFFER YOU ONE MORE THING YOUR PARENTS DID DRINKING DRAMBUIE THAT YOU SHOULD CONSIDER DOING AS FOR THE TRUE DOWNSIDE OF MIDDLEAGE ADVERTISERS ARE FACING UP TO THAT TOO THERE IS CREEPING ACCEPTANCE OF NOT ONLY GROWING OLDER BUT ROUNDER AS WELL LEE JEANS A UNIT OF VF CORP HAS CHOSEN TO TURN A HEALTH MESSAGE ON ITS EAR FORGET ABOUT CHOLESTEROL IT'S YOUR JEANS THAT HAVE BEEN CUTTING INTO YOUR CIRCULATION SAYS AN AD PROMOTING THE COMPANY'S LOOSELY CUT EASY RIDERS LINE LEE REALIZES THAT PEOPLE IN THEIR 40S NOWADAYS DRESS DIFFERENTLY THAN THEIR PARENTS DID WHEN THEY WERE IN THEIR 40S SAYS MS MARESCH LEE IS REDEFINING THE PROBLEMS OF A 40YEAROLD CHRYSLER SAYS MS MARESCH TRIES TO GIVE POSITIVE TOP SPIN TO APPROACHING MIDDLE AGE WITH A PRINT CAMPAIGN THAT INCLUDES THE HEADLINE MIDLIFE CHRYSLER WHILE APPLAUDING SUCH CAMPAIGNS MS MARESCH SAYS THEY AREN'T WITHOUT RISK IN SOME WAYS EACH AD TWEAKS A BABY BOOMER'S SENSITIVITIES AND VULNERABILITIES THE APPROACH IN ADS LIKE DRAMBUIE FLIES AGAINST THE BOOMER'S INDIVIDUALISTIC AND IDEALISTIC UPBRINGING SHE SAYS THE ADS ENCOURAGE THE BOOMER TO IDENTIFY WITH HIS PARENTS' VALUES ATTITUDES AND BEHAVIOR IN THE END TAILORING ADS TO AGING BABY BOOMERS WOULDN'T BE A TRUE TREND WITHOUT ALLUDING TO THOSE 50MINUTE HOURS THAT HELP EASE MIDLIFE CRISES AN AD FOR A DP AIR STRIDER STATIONARY BICYCLE SUMS IT UP ITS HEADLINE HOW TO RELIVE YOUR CHILDHOOD WITHOUT GOING THROUGH THERAPY WHO'S NEWS JOHN C JACK KRAFT FORMER VICE CHAIRMAN AND CHIEF OPERATING OFFICER WORLDWIDE AT LEO BURNETT WAS NAMED EXECUTIVE VICE PRESIDENT CHIEF ADMINISTRATIVE OFFICER OF YOUNG & RUBICAM EFFECTIVE TUESDAY 9312290100 931229 MANAGING YOUR CAREER BY TIMOTHY D SCHELLHARDT NOW IS THE PERFECT TIME TO PUT CAREERRELATED RESOLUTIONS ON YOUR LIST OF THINGS TO ACCOMPLISH DURING 1994 BUT UNLIKE THOSE EASILY BROKEN PROMISES TO EXERCISE OR LOSE WEIGHT YOU SHOULD KEEP YOUR CAREER AGENDA SHORT SPECIFIC AND DOABLE BE FOCUSED DON'T SIMPLY RESOLVE TO IMPROVE YOUR PERFORMANCE OR MAKE MORE MONEY LADEDA WE ALL DO THAT SAYS MARILYN MOATS KENNEDY A CAREER COUNSELOR IN WILMETTE ILL INDEED IN THIS SHAKY BUSINESS ENVIRONMENT SUCH RESOLUTIONS MAY NOT MERELY ENHANCE YOUR CAREER THEY MAY SAVE YOUR JOB IMAGINE THAT FRIDAY YOUR BOSS SAYS YOU SHOULD START LOOKING AROUND' ARE YOU PREPARED WHAT WOULD YOU DO MS KENNEDY ASKS AND IF THERE IS A STRONG HIRING UPTURN DURING 1994 ANY CAREER ACTIONS TAKEN EARLY IN THE YEAR COULD IMPROVE YOUR CHANCES OF LANDING AN ATTRACTIVE JOB ELSEWHERE HERE ARE SEVERAL CAREERRELATED RESOLUTIONS THAT CAREER EXPERTS SUGGEST ADDING TO YOUR NEW YEAR'S LIST FIND AN EXCUSE TO CALL EVERYONE ON YOUR NETWORKING LIST THAT'S A LOT OF PHONE CALLING ADMITS SAN FRANCISCO CAREER COUNSELOR DONALD ASHER MOST MANAGERS HAVE 300 OR MORE NAMES ON THEIR LISTS BUT IT'S ESSENTIAL IN KEEPING YOU FRESH IN THEIR MINDS HE ADDS BY STAYING IN TOUCH WITH YOUR CONTACTS A TENNIS GAME LUNCH OR OTHER INFORMAL OUTING YOU'LL BE REMEMBERED WHEN YOU WANT TO SWITCH JOBS OR FIND YOURSELF UNEMPLOYED MANY CAREER ADVISERS CONSIDER STAYING IN TOUCH WITH YOUR NETWORK MORE VALUABLE THAN UPDATING YOUR RESUME ONE PHILADELPHIA LAWYER MAKES TWO PHONE CALLS AND SENDS ONE LETTER DURING THE YEAR TO EVERY ONE OF THE SEVERAL HUNDRED NAMES ON HER ROLODEX SHE ACKNOWLEDGES THAT THE EFFORT IS MECHANICAL SAYS DOUGLAS B RICHARDSON A BALA CYNWYD PA CAREER CONSULTANT BUT PEOPLE APPRECIATE THE CONTACT AND THE OPPORTUNITY TO EXCHANGE INFORMATION HE ADDS ALTHOUGH HE DIDN'T HAVE A JOB TO FILL MR ASHER HIRED A NEWLY JOBLESS FORMER ASSOCIATE LAST WEEK AS A CAREER COUNSELOR SIMPLY BECAUSE SHE HAD MAINTAINED CONTACT WITH HIM IF I HADN'T HEARD FROM HER IN TWO YEARS I'D HAVE SAID I DON'T HAVE A SPOT FOR YOU' HE SAYS A RELATED TIP PROMISE TO ADD AT LEAST FIVE PEOPLE A MONTH TO YOUR NETWORK ADD THE BUSINESS CARDS THAT CLUTTER YOUR TOP DESK DRAWER TO YOUR ROLODEX AND IDENTIFY AT LEAST 10 PEOPLE FROM YOUR INDUSTRY YOU'D LIKE TO MEET OVER THE NEXT YEAR OR SO MS KENNEDY SUGGESTS WITH COMPANIES THROWING AWAY TALENT RIGHT AND LEFT MAKE SURE PEOPLE KNOW HOW VALUABLE YOU ARE MR ASHER ADVISES THIS ISN'T ABOUT COMPETENCE THIS IS ABOUT SURVIVAL DON'T LET ANY POSITIVE EVENT THAT YOU'RE RESPONSIBLE FOR GO UNNOTICED DO IT THROUGH MEMOS IF YOU WRITE A NOTE ABOUT AN ACCOMPLISHMENT TO YOUR BOSS SEND A COPY TO HIS OR HER SUPERIOR IN TODAY'S ENVIRONMENT PEOPLE ARE FOOLS WHO DON'T PROTECT AND PROMOTE THEIR REPUTATION WITHIN THEIR OWN COMPANY MR ASHER ASSERTS CREATE A SPECIAL EXTRA ASSIGNMENT FOR YOURSELF MS KENNEDY SUGGESTS YOU CHOOSE A TASK THAT BRINGS YOU INTO CLOSER CONTACT WITH TOP MANAGEMENT ONE MANAGER VOLUNTEERED TO COORDINATE HER DEPARTMENT'S PARTICIPATION IN A FIVEKILOMETER RUN FOR A NATIONAL CHARITY IT TURNED OUT THE CEO WAS ON THE BOARD OF THE NONPROFIT AND WAS VERY APPRECIATIVE OF HER EFFORTS MS KENNEDY SAYS AND THE EFFORT HASN'T HARMED THE MANAGER'S CAREER SOME OBJECTIVE SELFASSESSMENT WARTS AND ALL IS INVALUABLE IN DETERMINING HOW WELL YOUR CAREER IS GOING BUT MOST PEOPLE AREN'T VERY GOOD AT DOING THEIR OWN REALITY CHECKS MR RICHARDSON THE CAREER CONSULTANT SAYS INDIVIDUALS USUALLY ARE EITHER UNDULY HARD ON THEMSELVES OR THEY LOOK HOPEFULLY FOR OUTSTANDING TRAITS AND CHARACTERISTICS THAT MIGHT EXIST BETSY JAFFE A NEW YORK CAREER COUNSELOR SAYS YOU SHOULD SOLICIT FRANK FEEDBACK FROM A MENTOR OR A PEER YOU CAN TRUST MEET WITH THAT PERSON AT LEAST ONCE A MONTH YOUR CONTACTS SHOULD BE FREQUENT ENOUGH TO ALLOW YOU TO CHANGE YOUR BEHAVIOR AS NEEDED YOU MIGHT EVEN CONSIDER FORMING A PERSONAL BOARD OF ADVISERS A HANDFUL OF PEOPLE PREFERABLY OUTSIDE THE COMPANY WHO CAN OFFER IDEAS OR SERVE AS YOUR SOUNDING BOARD PICK PEOPLE WHO SEE THINGS DIFFERENTLY THAN YOU DR JAFFE SAYS IF YOU'RE NOT GOOD AT OFFICE POLITICS PICK SOMEONE WITH ORGANIZATIONALBEHAVIOR EXPERTISE IF YOU'RE NOT ANALYTICAL PICK SOMEONE WHO CAN PROVIDE THAT SORT OF PERSPECTIVE OR UPDATE YOUR CURRENT ONES EMPLOYERS INCREASINGLY FAVOR PEOPLE WHO CAN WEAR TWO OR MORE HATS SUE AIKEN A CAREER COUNSELOR IN WALNUT CREEK CALIF SAYS SHE HAS RESOLVED TO LEARN ABOUT BUDGETING DURING 1994 I'LL HATE EVERY MOMENT BUT IT WILL ENHANCE MY SKILLS IF SAY I WANT TO BE A DIRECTOR OF A NONPROFIT ORGANIZATION SHE SAYS SHARPENING COMPUTER SKILLS ALSO IS CONSIDERED ESSENTIAL SIMPLY NOTICE HOW MANY EMPLOYMENT ADVERTISEMENTS REQUIRE COMPUTER KNOWLEDGE EVEN FOR NONTECHNICAL POSITIONS SAYING THANKS FOR ALL THE GOOD THINGS THAT HE OR SHE HAS DONE IS THE PERFECT CLOSE FOR THE YEAR AND AN EXCELLENT WAY TO ENSURE A GOOD REFERENCE IN THE FUTURE MS KENNEDY SAYS HOW MANY PEOPLE DO YOU THINK EVER THINK OF DOING THIS 9312290099 931229 ECONOMY US SAYS '94 MANUFACTURING SHIPMENTS WILL GROW BY BIGGEST AMOUNT SINCE '88 BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A LARGELY UPBEAT REPORT COMMERCE DEPARTMENT OFFICIALS SAID US MANUFACTURING SHIPMENTS WOULD INCREASE NEXT YEAR BY THE BIGGEST AMOUNT SINCE 1988 SPURRED BY INCREASED BUSINESS INVESTMENT IN CAPITAL EQUIPMENT AND CONSUMER PURCHASES OF DURABLE GOODS IN ITS US INDUSTRIAL OUTLOOK 1994 THE COMMERCE DEPARTMENT FORECAST INDUSTRY WINNERS THAT WOULD LEAD NEXT YEAR'S ADVANCE THEY INCLUDE AUTOS COMPUTERS APPLIANCES HOME FURNISHINGS MEDICAL EQUIPMENT ENVIRONMENTAL TECHNOLOGY AND THE SPACE INDUSTRY THE CLINTON ADMINISTRATION RELEASED THE DENSE 650PAGE REPORT ON THE HEELS OF MAJOR VICTORIES WITH CONGRESSIONAL PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT AND THE NEGOTIATION OF A WORLD TRADE AGREEMENT UNDER THE AUSPICES OF THE GENEVABASED GENERAL AGREEMENT ON TARIFFS AND TRADE AND ADMINISTRATION OFFICIALS MADE A POINT YESTERDAY OF UNDERSCORING THE IMPORTANCE OF TRADE TO THE US ECONOMY VIRTUALLY ALL OF OUR PROSPECTS MUST BE ASSESSED IN THE CONTEXT OF A GLOBAL ECONOMY SAID JEFF GARTEN COMMERCE UNDERSECRETARY FOR INTERNATIONAL TRADE WHO JUST RETURNED TO THE US FROM TOKYO WHERE US AND JAPANESE OFFICIALS HAVE BEEN TRYING TO SETTLE ON A SOCALLED TRADE FRAMEWORK BETWEEN THE TWO COUNTRIES IN 1994 THE CONDITIONS ABROAD ARE GOING TO DEMAND A REDOUBLED FOCUS ON AMERICAN COMPETITIVENESS AND ON AN AGGRESSIVE TRADE STRATEGY HE SAID AT A BRIEFING RELEASING THE REPORT IF 1993 WAS THE YEAR OF TRADE LIBERALIZATION AND I THINK IT WAS THEN 1994 WILL HAVE TO BE THAT AND MUCH MORE MR GARTEN SAID MEXICO BRAZIL ARGENTINA INDIA INDONESIA AND CHINA WERE BIG EMERGING MARKETS OF THE FUTURE WITH LARGE MARKETS LARGE POPULATION AND PENTUP DEMAND FOR VIRTUALLY EVERYTHING HE SAID THE COMMERCE DEPARTMENT HAS PEGGED ENVIRONMENTAL TECHNOLOGY INFORMATION TECHNOLOGY AND HEALTHCARE TECHNOLOGY AS THE BIG EMERGING SECTORS THE REPORT PREDICTED 121 MANUFACTURING INDUSTRIES OF 136 SURVEYED WOULD SHOW INCREASED SALES IN THE COMING YEAR BUT THIS ISN'T NECESSARILY GOOD NEWS FOR US WORKERS AN ESTIMATED 60 OF THOSE 121 MANUFACTURING SECTORS WITH PROJECTED GROWTH ARE EXPECTED TO CUT JOBS THE EXPLANATION IS INCREASED AUTOMATION AND COMPUTERIZATION THE COMMERCE DEPARTMENT REPORT IS BASED ON DATA COLLECTED FROM 50 BLUECHIP ECONOMISTS AND MR GARTEN NOTED THAT IT ISN'T A MACROECONOMIC FORECAST THE DEPARTMENT PREDICTED AN INFLATIONADJUSTED MEDIAN GROWTH RATE IN MANUFACTURERS' SHIPMENTS OF 28 IN 1994 HALF OF US MANUFACTURERS WOULD HAVE FASTER GROWTH AND HALF WOULD HAVE SLOWER THE MEDIAN GROWTH RATE WAS 2 IN 1993 AND 17 IN 1992 WHILE SHIPMENTS SHOWED A MEDIAN DECLINE OF 37 IN 1991 WHEN THE RECESSION ENDED IF THE GROWTH RATE IS AS HIGH AS COMMERCE DEPARTMENT OFFICIALS PREDICT IT WOULD BE THE LARGEST GAIN SINCE A 34 RISE IN 1988 LOW INTEREST RATES ARE EXPECTED TO BOOST BUSINESS PURCHASES OF COMPUTERS AND MACHINERY AND CONSUMER SPENDING FOR AUTOS AND HOMES THE US AUTO INDUSTRY IS EXPECTED TO BE ONE OF THE FASTESTGROWING SECTORS WITH A 6 RISE IN TOTAL UNIT SALES OF USPRODUCED CARS AND LIGHT TRUCKS THERE IS SUPPOSED TO BE A 4 INCREASE IN HOUSING STARTS HELPING INDUSTRIAL OUTPUT IN OTHER SECTORS SUCH AS FURNITURE AND APPLIANCE SALES INCREASED DEMAND FOR AUTOS COMPUTER EQUIPMENT AND TELECOMMUNICATIONS ARE SUPPOSED TO HELP MAKE METALCUTTING MACHINE TOOLS AND ELECTRONIC COMPONENTS THE TWO FASTESTGROWING INDUSTRIES NEXT YEAR INSTRUMENTS AND MEDICAL EQUIPMENT ALSO ARE EXPECTED TO BE BIG CONTRIBUTORS TO THE INCREASED SHIPMENTS IN A CLOSELY WATCHED AREA CONSIDERING THE CLINTON ADMINISTRATION'S HEALTHCARE OVERHAUL PLANS THE COMMERCE DEPARTMENT PREDICTED NATIONAL HEALTHCARE EXPENDITURES WILL INCREASE 125 NEXT YEAR TO 106 TRILLION TOPPING 1 TRILLION FOR THE FIRST TIME HOME HEALTH COSTS WILL INCREASE A HUGE 345 NEXT YEAR BOOSTED PARTLY BY DEMOGRAPHICS TECHNOLOGY COSTEFFECTIVENESS AND CONSUMER CHOICE THE REPORT SAID THE INCREASE MAY ALSO BE SPURRED BY PROPOSALS PUSHED BY THE CLINTON ADMINISTRATION TO BOOST HOME AND COMMUNITY CARE FOR ELDERLY AND DISABLED PEOPLE AEROSPACE AND DEFENSERELATED ELECTRONICS ARE SUPPOSED TO BE TWO OF THE WEAKEST PERFORMING INDUSTRIES IN 1994 WITH THE VALUE OF AEROSPACE SHIPMENTS FOR EXAMPLE EXPECTED TO DECLINE 11 AND AIRCRAFT PARTS AND ENGINES DECREASING 24 MR GARTEN SAID THAT SEVEN OF 10 INDUSTRIES FACING CONTINUED PRESSURE IN 1994 ARE DEFENSERELATED THE COMMERCE DEPARTMENT SAID SERVICE INDUSTRIES ALSO WILL EXPAND AT A SLIGHTLY FASTER RATE THAN IN 1993 ONE OF THE FASTESTGROWING SERVICE AREAS WOULD BE SPACE COMMERCE INCLUDING COMMERCIAL SPACE LAUNCHES AND SATELLITE COMMUNICATIONS THE DEPARTMENT PREDICTED THIS AREA WOULD SEE A 226 BOOST IN REVENUES DATA PROCESSING ELECTRONIC INFORMATION AND GENERAL MERCHANDISE RETAILERS ARE OTHER BIGGIES THE FINANCIAL SECTORS INCLUDED TWO OF THE SLOWESTGROWING SERVICE AREAS ACTIVITY AT VENTURE CAPITAL FIRMS AND MORTGAGE LENDING BY SAVINGS INSTITUTIONS 9312290097 931229 INSIDE TRACK US SHOE INSIDERS BUY UP AFTER COSTCUTTING MOVES BY WARREN GETLER AND LESLIE SCISM STAFF REPORTERS OF THE WALL STREET JOURNAL INSIDERS AT RECOVERING US SHOE CORP FOLLOWING RECENT MOVES TO SLASH COSTS AND SHIFT MANAGEMENT HAVE BEEN LOADING UP ON SHARES OF THE DIVERSIFIED RETAILER WITH ITS FLAGSHIP CASUAL CORNER WOMEN'S APPAREL CHAIN LAST MONTH US SHOE POSTED EARNINGS OF 18 CENTS A SHARE FOR ITS FISCALTHIRD QUARTER AFTER TWO PREVIOUS QUARTERS OF LOSSES WHILE ANALYSTS EXPECT THE COMPANY TO POST A SMALL LOSS OR BREAK EVEN FOR THE FISCAL YEAR ENDING JAN 30 MANY EXPECT THE COMPANY'S COSTCUTTING AND RESTRUCTURING EFFORTS TO PAY OFF WITH A SOLID RETURN TO PROFITABILITY IN 1994 INSIDER BUYING AT US SHOE INCLUDING A 5000SHARE PURCHASE IN LATE NOVEMBER BY CHAIRMAN CHARLES S MECHEM JR AND A 20000SHARE PURCHASE BY DIRECTOR THOMAS LACO EARLY THIS MONTH COMES AMID A STRONG 98 JUMP IN NOVEMBER SAMESTORE SALES AT THE GROUP WHICH ALSO OWNS THE LENSCRAFTERS INC EYEWEAR RETAILER AS WELL AS SHOERETAILING UNITS MR MECHEM PAID 1475 EACH FOR HIS SHARES AND MR LACO 15 A SHARE RECENT SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW YESTERDAY SHARES OF CINCINNATIBASED US SHOE CLOSED AT 15 UP 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SHY OF ITS RECENT 52WEEK HIGH OF 15625 THE STOCK HAD DROPPED TO A LOW OF 8625 IN JULY FOLLOWING A DIVIDEND CUT IN MAY THOSE RECENT PURCHASES IN THE OPEN MARKET FOLLOW AN EARLIER ROUND OF INSIDERBUYING ACTIVITY BETWEEN LATE SEPTEMBER AND LATE OCTOBER WHEN FOUR SENIOR EXECUTIVES INCLUDING MR MECHEM AND PRESIDENT BANNUS HUDSON SNAPPED UP A COMBINED 13000 SHARES AT AN AVERAGE PRICE OF 1060 EACH SEC DATA SHOW MR MECHEM A COMPANY DIRECTOR SINCE 1990 WHO WAS ELECTED CHAIRMAN IN MARCH SAID HE BOUGHT A TOTAL OF 10000 SHARES FOR TWO REASONS IT WASN'T ONLY AS A SHOW OF CONFIDENCE IN THE COMPANY'S FUTURE HE SAID BUT ALSO BECAUSE AS CHAIRMAN I FELT IT WAS APPROPRIATE TO INCREASE MY STOCKHOLDINGS I WOULD EXPECT TO INCREASE THEM AT LEAST MODESTLY OVER THE COURSE OF NEXT YEAR MR MECHEM HELD 2500 SHARES BEFORE THE PURCHASES THIS FALL COMPANY SPOKESMAN ROBERT BURTON SAID THE INSIDER PURCHASES AS A WHOLE REPRESENTED SOME OPTIMISM ABOUT THE COMPANY'S PROSPECTS FOR A SOLID RECOVERY FOLLOWING A VERY STRONG SALES PERFORMANCE IN OCTOBER AND NOVEMBER HE NOTED THAT THE COMPANY BEFORE A NONRECURRING CHARGE OF 8 CENTS A SHARE FOR DIVESTITURE OF RETAIL OPERATIONS IN BRITAIN POSTED ITS STRONGEST THIRDQUARTER OPERATING EARNINGS 26 CENTS A SHARE IN FOUR YEARS INDEED ANALYSTS HAVE BEEN REVISING THEIR EARNINGS PROJECTIONS UPWARD FOR THE YEAR ENDING IN JANUARY 1995 TO AROUND 1 A SHARE FROM EARLIER FORECASTS OF 80 CENTS A SHARE FOR THE CURRENT FISCAL YEAR MOST FORECASTS ARE FOR A LOSS OF 5 CENTS TO 15 CENTS A SHARE COMPARED WITH A SMALL PROFIT OF 10 CENTS A SHARE A YEAR EARLIER THEY ARE IN A QUICKER RECOVERY THAN WE EXPECTED SAID EDWARD JOHNSON AN ANALYST WITH JOHNSON REDBOOK SERVICE IN NEW YORK WE'VE RAISED OUR ESTIMATE TO 30 CENTS A SHARE FOR THE FOURTH QUARTER A YEAR AGO WE HAD IT AT 10 CENTS A SHARE OTHER ANALYSTS AND MONEY MANAGERS CAUTION HOWEVER THAT IN THE WAKE OF A GENERALLY TEPID CHRISTMAS SEASON THE OVERALL MARKET FOR APPAREL RETAILERS IN THE FIRST HALF OF 1994 APPEARS LESS FAVORABLE THAN IT DID A FEW WEEKS AGO THE INDUSTRY US SHOE FINDS ITSELF IN IS TOO COMPETITIVE FOR THE KIND OF SUSTAINED EARNINGS GROWTH THAT I LOOK FOR SAID DAVID KLASKIN PRESIDENT OF OAK RIDGE INVESTMENTS IN CHICAGO IT'S INTRIGUING AS A POTENTIAL TAKEOVER PLAY GIVEN ITS FRANCHISE EXPOSURE WITH CASUAL CORNER AND LENSCRAFTERS SUCH UNCERTAINTY ASIDE THE RECENT SPATE OF INSIDERBUYING ACTIVITY WILL CERTAINLY CATCH THE EYE OF POWERFUL INVESTOR ACTIVISTS US SHOE IS ONE OF A DOZEN OR SO MAJOR US CORPORATIONS TARGETED BY SUCH ACTIVISTS IN PARTICULAR THE COMPANY IS UNDER THE MICROSCOPE OF THE INFLUENTIAL CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM WHICH HAS BEEN DISAPPOINTED BY US SHOE'S POOR FINANCIAL PERFORMANCE CALPERS HAS BEEN NEGOTIATING BEHIND CLOSED DOORS TO OBTAIN VARIOUS CORPORATEGOVERNANCE CHANGES NONETHELESS TO MEET US SHOE'S DEADLINE FOR GETTING SHAREHOLDER PROPOSALS ON THE COMPANY'S ANNUAL SPRING PROXY CALPERS RECENTLY FILED AT LEAST ONE RESOLUTION DEWITT BOWMAN CALPERS'S CHIEF INVESTMENT OFFICER SAID YESTERDAY THAT THE PENSION PLAN WOULDN'T DISCLOSE ANY SPECIFIC US SHOE PROPOSALS PENDING A SCHEDULED MIDJANUARY MEETING CALPERS WILL HAVE WITH THE RETAILER TO TRY TO WORK OUT DIFFERENCES IF THE DIFFERENCES ARE RESOLVED CALPERS WOULD WITHDRAW ITS PROPOSAL IN GENERAL ONE OF CALPERS'S BIGGEST PUSHES IS FOR COMPANIES TO PAY MANAGEMENT PARTLY IN COMPANY STOCK THE REASON IT ALIGNS THEIR INTERESTS WITH THOSE OF SHAREHOLDERS SUCH AS CALPERS IDEALLY WE'D LIKE THE DIRECTORS AS WELL AS TOP MANAGERS TO HAVE AN ALIGNMENT OF INTERESTS BECAUSE THE PRIMARY NEED IS THAT THE PEOPLE WHO ARE DIRECTLY RESPONSIBLE FOR MANAGING THE CORPORATION HAVE A DIRECT STAKE IN THE SUCCESS OF THEIR MANAGEMENT MR BOWMAN SAID WILLIAM CRIST PRESIDENT OF CALPERS' BOARD OF ADMINISTRATION SAID THAT THE RECENT INSIDER BUYING COULD BE A POSITIVE SIGN THAT US SHOE'S PROMISED TURNAROUND IS ON TRACK HE ADDED IT IS ONE OF OUR GENERAL GUIDING PRINCIPLES THAT EXECUTIVE OFFICERS AND DIRECTORS WOULD SERVE THE COMPANY BEST IF THEY HAVE SOME FINANCIAL STAKE IN IT US SHOE'S MR MECHEM SAID HE AGREES WITH THAT VIEWPOINT BUT ADDED THAT HIS SHARE PURCHASES WERE NOT MADE AT THE PROMPTING OF ANY OUTSIDE ACTIVIST GROUP THERE'S A BODY OF OPINION THAT BELIEVES THAT OFFICERS SHOULD HAVE IMPORTANT STOCK POSITIONS THAT OFFICER COMPENSATION SHOULD BEAR SOME RELATIONSHIP TO STOCK VALUE AND STOCK OWNERSHIP AND I CERTAINLY DON'T DISAGREE WITH THAT HE SAID BUT I DID NOT BUY THESE SHARES IN RESPONSE TO ANY SPECIFIC SHAREHOLDER'S SUGGESTIONS OR THOUGHTS 9312290095 931229 LETTERS TO THE EDITOR TEMPORARY LAWYERS A STRATEGIC ASSET IN REGARD TO THE DEC 13 LETTER WARNING TO BIG FISH EXAMINE BAIT CLOSELY I HAVE THE HIGHEST REGARD FOR YOUR NAYSAYING CORRESPONDENT LAWRENCE J FOX AND HIS LAW FIRM DRINKER BIDDLE & REATH MR FOX AND I ARE FELLOW ARBITRATORS IN A CASE BEFORE THE AMERICAN ARBITRATION ASSOCIATION AND HIS FIRM IS PRINCIPAL OUTSIDE COUNSEL TO A CORPORATION I SERVE AS GENERAL COUNSEL HOWEVER MR FOX MAY NOT REALIZE THAT OVER THE PAST SEVERAL YEARS LAW FIRM DOWNSIZINGS A STAGNANT ECONOMY AND THE PHASED RETURN OF MOSTLY WOMEN LAWYERS FROM CAREER INTERRUPTIONS TO RAISE CHILDREN AND OTHER FACTORS HAVE SWELLED THE RANKS OF TEMPORARY LAWYERS A LARGE NUMBER OF THESE HAVE EDUCATION AND EXPERIENCE CREDENTIALS MR FOX WOULD APPROVE MANY HAVE WORKED ON TEAMS TOGETHER AND THEY ARE PAID NOT FOR LOYALTY BUT FOR PERFORMANCE IN FEBRUARY 1994 ALTMAN WEIL PENSA OF NEWTOWN SQUARE PA WHOM MANY BELIEVE TO BE THE WORLD'S LEADING LEGAL MANAGEMENT CONSULTANTS WILL PUBLISH A DETAILED REPORT ON LAW FIRM AND CORPORATE USE OF TEMPORARY LAWYERS AS A STRATEGIC ASSET I RECOMMEND IT TO MR FOX AND OTHERS INTERESTED IN THE SUBJECT 9312290094 931229 LETTERS TO THE EDITOR KAYE SCHOLER BULLIED BY A POWERFUL OTS THE NOV 19 BUSINESS OF LAW ARTICLE REPORTING THAT THE DISCIPLINARY COMMITTEE OF THE APPELLATE DIVISION FIRST DEPARTMENT HAD EXONERATED KAYE SCHOLER PARTNERS PETER FISHBEIN AND KAREN KATZMAN FROM ANY ETHICAL VIOLATIONS IN CONNECTION WITH THEIR REPRESENTATION OF LINCOLN SAVINGS & LOAN ASSOCIATION RAISES ANEW THE ISSUE OF PROSECUTORIAL CONDUCT IN POLITICALLY CHARGED CASES THE DISCIPLINARY COMMITTEE INCLUDES BOTH LAWYERS AND NONLAWYERS AND HAS A NATIONAL REPUTATION FOR FAIRNESS AND INDEPENDENCE AND FOR IMPOSING HIGH PROFESSIONAL STANDARDS ON LAWYERS AS YOUR ARTICLE RELATES THE COMMITTEE'S CHIEF COUNSEL PERSONALLY UNDERTOOK THIS PARTICULAR INVESTIGATION DESPITE POSSIBLE PUBLIC PRESSURE TO BRING CHARGES BECAUSE OF THE NOTORIETY OF THE LINCOLN COLLAPSE THE COMMITTEE FOUND NO BASIS FOR ANY VIOLATION OF ETHICAL OBLIGATIONS THAT FINDING ALONE MAKES CLEAR THAT THE OFFICE OF THRIFT SUPERVISION WHICH BROUGHT CHARGES AGAINST KAYE SCHOLER AND UNILATERALLY IMPOSED AN ASSET FREEZE TO COERCE THE FIRM TO SETTLE IMPROPERLY USED ITS ENORMOUS POWER TO OBTAIN RELIEF THAT WAS NOT JUSTIFIED ON THE MERITS BUT THERE IS EVEN MORE TO THE STORY THE AMERICAN BAR ASSOCIATION RECENTLY APPOINTED A SELECT WORKING GROUP ON LAWYERS' REPRESENTATION OF REGULATED CLIENTS WHICH STUDIED THE KAYE SCHOLER MATTER THAT GROUP THE REPORT OF WHICH WAS UNANIMOUSLY APPROVED BY THE ABA HOUSE OF DELEGATES FOUND THAT THE OTS CHARGES WERE BASED ON STANDARDS OF LAWYER CONDUCT THAT APPEARED TO GO BEYOND OR TO CONFLICT WITH TRADITIONAL PRINCIPLES OF PROFESSIONAL RESPONSIBILITY AND THE MODEL RULES OF PROFESSIONAL CONDUCT IN A DETAILED AND CAREFUL ANALYSIS THE GROUP EMPHATICALLY CONCLUDED THAT THE ABA'S CODE OF PROFESSIONAL CONDUCT SHOULD NOT BE CHANGED THE OTS'S NOVEL POSITIONS ON ETHICAL STANDARDS WERE AN ABORTIVE ATTEMPT TO MAKE LAWYERS REPRESENTING BANKS INTO AGENTS OF THE GOVERNMENT CONTRARY TO THEIR TRADITIONAL ETHICAL OBLIGATIONS OF LOYALTY TO THE CLIENT THE OTS ATTEMPTED TO JUSTIFY ITS UNPRECEDENTED CASE AGAINST KAYE SCHOLER BY ARGUING THAT THE FIRM SHOULD BE HELD TO DIFFERENT ETHICAL STANDARDS BECAUSE IT INTERPOSITIONED ITSELF BETWEEN THE REGULATOR AND ITS CLIENT AND BECAME THE SOLE SOURCE OF FACTS MADE AVAILABLE BY THE CLIENT TO THE REGULATOR THE ABA WORKING GROUP REPORT HOWEVER DEMONSTRATES THAT THIS ASSERTION CRUCIAL TO THE OTS THEORY OF LIABILITY ON THE PART OF KAYE SCHOLER IS INACCURATE DISCOVERY IN THE NUMEROUS LITIGATIONS INVOLVING LINCOLN DISCLOSED HUNDREDS OF MEETINGS AND OTHER DIRECT COMMUNICATIONS BETWEEN LINCOLN EXECUTIVES AND THE REGULATORS DURING THE RELEVANT PERIOD THE ABA GROUP'S REPORT CONCLUDES THAT A MEMORANDUM ANALYZING THIS EVIDENCE APPEARS TO DOCUMENT NUMEROUS DIRECT CONTACTS BETWEEN THE AGENCY AND KAYE SCHOLER'S CLIENT LINCOLN SAVINGS & LOAN ASSOCIATION DURING THE PERIOD TO WHICH THE CHARGES RELATE WITH HINDSIGHT IT IS APPARENT THAT THE OTS STUCK FOR BILLIONS IN A SAVINGS AND LOAN CRISIS THAT THE GOVERNMENT HELPED CREATE BROUGHT CHARGES BASED ON NOVEL AND CONTRIVED ETHICAL STANDARDS AND WITHOUT NOTICE OR HEARING IMPOSED AN ASSET FREEZE TO FORCE THE FIRM TO SETTLE WE MUST BE VIGILANT ABOUT SUCH GOVERNMENTAL ACTIONS IF LAWYERS ARE TO CONTINUE TO ACT ZEALOUSLY ON BEHALF OF THEIR CLIENTS A GOVERNMENT LAWYER'S ABIDING OBLIGATION IS TO SEEK JUSTICE AND NOT MERELY TO WIN CASES OR BRING ABOUT UNJUST SETTLEMENTS BY RESORTING TO AN EX PARTE ASSET SEIZURE WITHOUT NOTICE OR HEARING WHEN GOVERNMENT LAWYERS BREACH THIS OBLIGATION JUSTICE AND THE PUBLIC INTEREST ARE NOT WELL SERVED 9312290093 931229 WALL STREET PLANS TO CRACK DOWN ON IPO FLIPPERS' BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU BELIEVE WALL STREET'S TOUGH TALK FLIPPERS MAY BE AN ENDANGERED SPECIES THESE HOTHANDED INVESTORS SNAP UP NEW SHARES IN INITIAL PUBLIC OFFERINGS THEN QUICKLY SELL OR FLIP THEM TO CAPTURE THEIR FIRSTDAY SPURT IN PRICE LUCKY INVESTORS WITH QUICK TRIGGER FINGERS CAN MAKE MILLIONS FROM FLIPPING BUT THE PRACTICE HAS GOTTEN SO OUT OF HAND LATELY THAT IT'S ANGERED SOME OTHER CHERISHED CLIENTS OF WALL STREET NAMELY THE COMPANIES WHOSE SHARES ARE FLIPPED AND THE LEGIONS OF SMALL INVESTORS WHO ARE BARRED FROM THE PARTY EAGER TO SMOOTH THOSE FEATHERS BROKERAGE FIRMS FINALLY ARE MOVING TO CRACK DOWN ON FLIPPERS BY USING THE CARROT AS WELL AS THE STICK PENALIZING BROKERS WHO ENCOURAGE FLIPPERS WHILE OFFERING SPECIAL DEALS TO INVESTORS WHO PROMISE TO STAY PUT ALTHOUGH FLIPPING IS A TIMEHONORED TACTIC ON WALL STREET THESE DAYS IT'S WORSE SAYS TERRY FITZGERALD SALOMON INC'S MANAGING DIRECTOR OF EQUITY CAPITAL MARKETS THE REASON A LOT OF INVESTORS HAVE DISCOVERED THAT THE EASIEST WAY TO MAKE MONEY IN THIS UNCONVINCING MARKET IS TO PLAY THE HOT IPO GAME SAYS MR FITZGERALD IT'S ONE OF THE FEW INVESTMENT STRATEGIES THAT'S WORKED HOWEVER THE CRACKDOWN PUTS THE BROKERAGE FIRMS IN AN AWKWARD POSITION OF TRYING TO KILL OFF A PRACTICE THAT IS ESSENTIALLY OF THEIR OWN MAKING BECAUSE WHILE THERE'S NO GUARANTEE THAT A GIVEN IPO WILL TURN A FAST BUCK FOR FLIPPERS SECURITIES FIRMS HELP FAVOR THAT OUTCOME BY PRICING NEW ISSUES AT ROUGHLY 10 BELOW THEIR PERCEIVED FAIR MARKET VALUE THE FIRMS' INTENT IS TO HELP ENSURE A SUCCESSFUL IPO LAUNCH NOT NECESSARILY TO BENEFIT FLIPPERS BUT IT'S NO COINCIDENCE THAT BROKERS TEND TO GIVE FIRST SHOT AT NEW STOCK ISSUES TO CERTAIN FAVORITE CUSTOMERS NAMELY THE HEDGE FUNDS MUTUAL FUNDS AND PENSION FUNDS WHO GENERATE THE BIGGEST COMMISSIONS WHO'S KIDDING WHOM SAYS SCOTT BLACK PRESIDENT OF BOSTONBASED DELPHI MANAGEMENT OF WALL STREET'S TOUGH STANCE ON FLIPPING IT'S LIP SERVICE HE SAYS THE HEDGE FUNDS AND MUTUAL FUNDS THAT ROUTINELY FLIP IPOS GET THE LION'S SHARE OF GOOD IPO OFFERINGS BECAUSE THEY'LL ALSO TAKE THE TOUGH DEALS THE LOUSY DEALS SAYS MR BLACK BY CONTRAST INVESTORS SUCH AS DELPHI MANAGEMENT WHO BUY AND HOLD IPOS FOR THE LONG TERM JUST GET 10 TO 15 OF THE NEW ISSUE ALLOCATIONS THAT THEY WANT HE ADDS IT'S QUID PRO QUO AND THAT'S THE NATURE OF THE BUSINESS INSTITUTIONS ARE FLIPPING MORE FEROCIOUSLY THAN EVER IN PART BECAUSE THERE ARE MORE IPOS TO FLIP A RECORD 819 NEW ISSUES HIT THE STOCK MARKET SO FAR THIS YEAR ACCORDING TO SECURITIES DATA CO A NEWARK NJ RESEARCH FIRM GROUPS OF WEALTHY INVESTORS ARE BANDING TOGETHER THROWING IN A MILLION EACH AND CALLING THEMSELVES A HEDGE FUND JUST TO PLAY THE NEW ISSUES GAME SAYS JOSEPH PLUMERI PRESIDENT OF SMITH BARNEY SHEARSON INC THE BROKERAGE UNIT OF PRIMERICA CORP SINCE BIG INVESTORS ARE SWAMPED WITH SALES PITCHES ON NEW STOCKS THE ONLY WAY WALL STREET INVESTMENT BANKERS CAN GET THEIR FOOT IN THE DOOR IS WITH THE TACIT UNDERSTANDING THAT THE SHARES SOLD WILL BE HELD FOR LITTLE MORE THAN A NANOSECOND SOME BANKERS SAY A SALOMON STUDY BASED ON DATA FROM 15 MAJOR UNDERWRITERS SHOWS THAT 27 TO 48 OF A GIVEN IPO'S SHARES GET FLIPPED ON THEIR FIRST TRADING DAY BY THE TIME MOST SMALL INVESTORS GET A SHOT AT BUYING AN IPO THE JUICE IS GONE ALONG WITH MANY POWERHOUSE INVESTORS ALTHOUGH WALL STREET HAS TALKED TOUGH ON FLIPPING BEFORE THE FIRMS INSIST THEY MEAN IT THIS TIME LAST MONTH SMITH BARNEY SENT TO ITS 11000BROKER SALES FORCE RESTRICTIONS ON WHO YOU CAN DO BUSINESS WITH SAYS MR PLUMERI THE NEW SYNDICATE POLICY DOESN'T SINGLE OUT SPECIFIC HEDGE FUNDS OR INSTITUTIONS BY NAME BUT IT WARNS BROKERS THAT IF THEY SELL STOCK TO INVESTORS WHO FAIL TO HOLD IT FOR A MINIMUM PERIOD AFTER THE OFFERING THE BROKERS WILL FORFEIT THEIR OWN PROFIT ON THE SALE WE'VE TAKEN SALES CONCESSIONS BACK FROM BROKERS SAYS MR PLUMERI BUT DECLINES TO ELABORATE EITHER ON THE MINIMUM HOLDING PERIOD OR THE NUMBER OF BROKERS WHO'VE BEEN PENALIZED IN THEORY THE POLICY COULD MEAN SIZABLE FINES FOR BROKERS WHO PANDER TO FLIPPERS FOR EXAMPLE ENFORCING THE POLICY ON JUST ONE 10000SHARE TRADE OF A 10 STOCK COULD COST 3000 IN LOST COMMISSIONS SMITH BARNEY'S NEW POLICY ALSO RANKS THE FIRM'S BRANCH OFFICES EVERY 10 DAYS BASED IN PART ON HOW FREQUENTLY THEIR CLIENTS FLIP IPO SHARES THE POLICY WARNS IF A DISPROPORTIONATE NUMBER OF SHARES HAVE BEEN TRADED OR TRANSFERRED THE BRANCH'S ALLOCATION WILL BE REDUCED FOR SUBSEQUENT DEALS FIRMS SUCH AS MERRILL LYNCH & CO AND LEHMAN BROTHERS INC THE BROKERAGE UNIT OF AMERICAN EXPRESS CO ARE STEPPING UP EFFORTS TO IDENTIFY PERENNIAL FLIPPERS AMONG THEIR CLIENTS INCREASINGLY THESE FIRMS REQUIRE THAT HOT IPO ISSUES THE ONES THEY EXPECT TO BE PRIME TARGETS FOR FLIPPERS GET DELIVERED IN STOCKCERTIFICATE FORM NOT ON COMPUTER THE AIM IS TO ESTABLISH A PAPER TRAIL WHEN STOCK CERTIFICATES REBOUND BACK ONTO THE MARKET A COMPLIANCE OFFICER OR AGENT IN CHARGE OF THE DEAL CAN TRACK WHO FLIPPED THEM AT MERRILL LYNCH A SYNDICATE COMPLIANCE OFFICER WILL CALL SALESMEN ON THE CARPET WHEN TOO MANY CERTIFICATES COME BACK FROM ONE CLIENT AT LEHMAN IF WE GET A CERTIFICATE RETURNED WE TRACE THAT CERTIFICATE BACK TO THE BROKER WHO SOLD THE STOCK AND THE INSTITUTION THAT FLIPPED IT SAYS T ANTHONY BROOKS MANAGING DIRECTOR OF EQUITY SYNDICATION WE PENALIZE BROKERS BY MEANS OF THE SELLING CONCESSION WE TAKE IT AWAY FROM THEM FEW FIRMS SUGGEST BOYCOTTS OF THE MUTUAL FUNDS AND OTHER BIG INSTITUTIONS THAT ARE THE WORST OFFENDERS TO THESE INSTITUTIONS BROKERAGE FIRMS OFFER ENTICEMENTS NOT THREATS FOR INSTANCE INSTITUTIONS THAT AGREE TO HANG ON TO IPOS ARE PROMISED FIRST CRACK AT THE HOTTEST NEW ISSUES GENERALLY THOSE FROM EMERGING MARKETS THE FIRMS ARE HOPING THAT GETTING TOUGH ON FLIPPERS WILL CURRY FAVOR WITH POTENTIAL NEW ISSUERS AND WITH INDIVIDUAL INVESTORS A CURRENT MORGAN STANLEY ADVERTISEMENT SAYS YOUR EQUITY OFFERING IS ONLY 20 MINUTES OLD AND THE BEARS THINK THEY SMELL BREAKFAST THE FIRM GOES ON TO BRAG THAT IT HAS SEARCHED THE WORLD MARKETS FOR THE RIGHT CORE INVESTORS WHO'LL MAKE LONGTERM INVESTMENTS IN A COMPANY'S STOCK IN THE END FLIPPING IS AN UNFORTUNATE REALITY OF OUR BUSINESS SAYS SANDY DAIGNAULT MANAGING DIRECTOR IN CHARGE OF ALEX BROWN & SON'S EQUITY TRADING GROUP INDEED THE BIGGEST THREAT TO FLIPPERS AT THIS POINT PROBABLY ISN'T WALL STREET BUT A BEAR MARKET