REMEMBER 1992 JOBLESS AID AND CASUALTY LOSSES SOARED DIVIDENDS SLUMPED INITIAL IRS ESTIMATES BASED ON 1992 RETURNS FILED BY LAST APRIL 30 RECALL A LISTLESS ECONOMY ADJUSTED GROSS INCOME GREW ONLY 12 FROM 1991 TO 33 TRILLION TAXABLE INCOME SLIPPED 02 TO 21 TRILLION NUDGING INCOME TAXES DOWN 12 TO 4082 BILLION TAX AS A PERCENTAGE OF GROSS INCOME GENERALLY DECLINED THE 22 RISE IN WAGE INCOME FAILED TO MATCH THE 3 INFLATION DIVIDEND INCOME DROPPED 66 FALLING RATES JAMMED INTEREST INCOME DOWN 252 BUT UNEMPLOYMENT COMPENSATION CLIMBED BY 335 TOTAL ITEMIZED DEDUCTIONS ROSE ONLY 16 TO 416 BILLION AFTER A 4 DECLINE IN MORTGAGE INTEREST PAID MOST OF THE GROWTH IN TOTAL DEDUCTIONS AND IN PERSONAL EXEMPTIONS WAS CAUSED BY ADJUSTMENTS FOR INFLATION BUT THE DEPREDATIONS OF HURRICANE ANDREW IN FLORIDA AND LOUISIANA HELPED PUSH CASUALTY AND THEFTLOSS CLAIMS TO 42 BILLION OVER SIX TIMES THE 1991 FIGURE OF 660 MILLION EARNEDINCOME CREDITS CLAIMED BY 134 MILLION LOWPAID WORKERS ROSE 174 TO 124 BILLION YOU DON'T WANT TO SHOP ON THE OTHER SIDE OF THE TAX IN ARAB ALA A RETAILER IN THE NICHE OF ARAB THAT LIES IN CULLMAN COUNTY WOULD HAVE TO COLLECT A 12 SALES TAX 4 EACH FOR THE CITY COUNTY AND STATE THAT IS THE HIGHEST RATE IN ANY US JURISDICTION SAYS JACK SCHAFFER OF VERTEX INC BERWYN PA THE RATE IS JUST 8 IN THE ARAB QUARTERS IN MARSHALL COUNTY WHICH DOESN'T LEVY ITS SALES TAX WITHIN THE CITY THE GOOD NEWS NO ARAB RETAILERS AND FEWER THAN 50 OF ARAB'S 7500 RESIDENTS ARE SITUATED IN CULLMAN COUNTY THUS THE HIGHEST SALES TAX BEING COLLECTED IN THE US IS 1075 AT NEW ORLEANS INTERNATIONAL AIRPORT NEW ORLEANS'S TAX IS 9 JUST FOUR JURISDICTIONS HAVE RATES OF 10 OR MORE SCHAFFER SAYS STARTING SATURDAY THE RATE IN PICHER OKLA CLIMBS TO 105 FROM 85 THE RATE IN THE LEE COUNTY AREA OF PHENIX CITY ALA ROSE TO 10 LAST AUG 1 THE RATE ELSEWHERE THERE IS 8 HOW DO I CON THEE LET ME COUNT THE WHEYS TERRENCE JAMES TAYLOR OF KANSAS CITY KAN OWNED CULTURE FARMS IT HELPED MARKET A POWDER TO FORM CURDS IN MILK CULTURES FOR 100 GLASSES OF MILK WERE PRICED AT 3500 TO 4000 CULTURE FARMS WAS SUPPOSED TO BUY BACK CURDS FOR RESALE TO A COSMETICS COMPANY AND MORE THAN DOUBLE INVESTORS' MONEY IN 15 WEEKS IN SIX MONTHS OF 1985 THE SCAM MILKED OVER 28000 GROWERS OF 80 MILLION IN FACT CULTURE FARMS RETURNED LITTLE TO INVESTORS THE HOUSE OF CURDS TUMBLED WHEN STATE SECURITIES REGULATORS ACCUSED TAYLOR AND OTHERS OF FRAUD IN 1987 TAYLOR ATE HIS WORDS ON WHEY AND PLEADED GUILTY OF SPREADING FALSE ADVERTISING IN THE MAILS HE WAS SENTENCED TO A YEAR IN PRISON AND FINED 10000 THEN THE IRS TRACED A COMPLEX WEB OF TRANSFERS OF CULTURE FARMS FUNDS IN THE US AND ABROAD BY WHICH TAYLOR HAD HIDDEN 1 MILLION OF HIS 1985 INCOME UNLIKE MISS MUFFIT HE DECIDED TO TOUGH IT OUT AND APPEALED TO THE TAX COURT BUT JUDGE COLVIN UPHELD THE IRS'S TRACING AND TALLY OF THE DIVERTED FUNDS THE JUDGE SAID TAYLOR OWED TAX ON THE MILKBILK MONEY PLUS A FRAUD PENALTY UP IN SMOKE WOULD GO 4 BILLION IN LOST STATE CIGARETTETAX REVENUE IN 199599 IF A FEDERAL TAX OF 75 CENTS A PACK WERE USED TO FINANCE HEALTHCARE REFORM THE FEDERATION OF TAX ADMINISTRATORS ESTIMATES IT SAYS THAT STATES ALSO COULD LOSE 28 BILLION IN INCOME TAXES BUT THAT OTHER CLINTON PROPOSALS WOULD BROADEN STATETAX BASES AND YOU THINK THE IRS IS ROUGH IT EXPECTED TO GET ABOUT 115 MILLION RETURNS THIS YEAR AND TO AUDIT ABOUT 1 WHEN 357598 TAXPAYERS FILED THE FIRST MODERN INCOMETAX RETURNS IN 1914 THEY HAD TO SIGN THEM UNDER OATH BEFORE OFFICIALS AND THE BUREAU OF INTERNAL REVENUE AUDITED EVERY ONE HAPPY TRAILS THE OPTIONAL STANDARD DEDUCTION FOR BUSINESS USE OF A CAR RISES TO 29 CENTS A MILE IN 1994 FROM 28 CENTS IN 1992 AND 1993 BUT IRS REVENUE PROCEDURE 9351 SAYS THE DEDUCTION FOR USING A CAR IN CHARITABLE ACTIVITIES REMAINS 12 CENTS DON'T SHAKE HANDS ON A PARTNERSHIP BEFORE CHECKING THESE NEW IRS RULES THE IRS HAS JUST ISSUED FINAL RULES INTERPRETING 1984 LAW ON AN ARCANE BUT COMMON TAX QUESTION WHAT RESULTS WHEN SOME PEOPLE OR COMPANIES PUT CASH INTO A PARTNERSHIP AND OTHERS CONTRIBUTE PROPERTY THAT HAS GROWN IN VALUE ONE TRICKY PART IS ALLOCATING GAIN OR LOSS AMONG PARTNERS WHEN THE APPRECIATED PROPERTY IS SOLD TAX EXPERTS SAY THE NEW RULES PROVIDE SIMPLIFIED AND REASONABLE OPTIONS FOR REACHING AN ANSWER ONE RULE TARGETS TAXAVOIDANCE SCHEMES NOTES PETER CANELLOS OF THE NEW YORK LAW FIRM WACHTELL LIPTON ROSEN & KATZ SUPPOSE ONE PARTNER PUTS IN PROPERTY WITH A 1 MILLION GAIN ON WHICH IT SEEKS TO AVOID TAX THE OTHER PARTNER WHICH PUTS UP CASH FOR A 50 INTEREST ISN'T TAXABLE BECAUSE IT HAS A BIG LOSS CARRYFORWARD IS A CHARITY OR IS FOREIGN WITHOUT AN ANTIABUSE RULE CANELLOS SAYS THE PARTNERS COULD SELL THE PROPERTY AND SPLIT THE GAIN EQUALLY THUS THE ORIGINAL OWNER COULD HALVE ITS TAX WHILE THE OTHER PARTNER PAID NO TAX AT ALL THE NEW ANTIABUSE RULE OUTLAWS SUCH DELIBERATE TAXAVOIDANCE MANEUVERS BRIEFS MASSACHUSETTS'S AMNESTY FOR OUTOFSTATE NONFILERS BROUGHT IN NEARLY 12 MILLION OF TAXES ON INCOME EARNED THERE RETIRED MARINE COL ROBERT B ENGESSER OF VIRGINIA BEACH VA INSISTED ON PRINCIPLE THAT HE WAS SINGLE NOT MARRIED AS THE IRS HAD FIGURED EVEN THOUGH THE FILINGSTATUS CHANGE WOULD INCREASE HIS TAX SO ON THAT ISSUE THE TAX COURT GAVE HIM THE LAST WORD 9312290091 931229 LETTERS TO THE EDITOR HE WAS REALLY GEORGE WEARING A HARRY MASK WHOA ALBERT HUNT THE SIMPLE FACT IS THAT BILL CLINTON LAST YEAR WAS ELECTED AS A CHANGE DEMOCRAT NOT A CONSERVATIVE DEMOCRAT IT WON'T BE ANY EASIER FOR CLINTON IN '94 POLITICS & PEOPLE DEC 2 MR HUNT OFFERS THIS SIMPLE FACT IN SUPPORT OF HIS THESIS THAT MR CLINTON SHOULD NOT TAKE FOR GRANTED HIS DEMOCRATIC PARTY'S BASE WHICH MR HUNT ADMITS IS SOMEWHAT TO THE LEFT OF THE CENTER OF THE COUNTRY MR CLINTON WAS ELECTED BY 43 AND BY A MAJORITY OF VOTERS IN ONE STATE ARKANSAS THE DOOR TO THE CLINTONISTA WIN WAS OPENED BY THE 19 PEROTISTAS THE PEROTISTAS WERE BENT ON FIRING A FECKLESS BUSH BUT MANY OF THEM AND MANY OF THE CLINTON VOTERS WERE SEDUCED BY BILL CLINTON THE NEW DEMOCRAT ALUMNUS OF THE DEMOCRATIC LEADERSHIP COUNCIL PROPONENT OF DEFICIT REDUCTION MIDDLECLASS TAX CUTS AND SKEPTIC OF TRADITIONAL TAXANDSPEND NOSTRUMS MR CLINTON RAN AS HARRY TRUMAN SOME BOUGHT IT THEY GOT GEORGE MCGOVERN THE CLINTON CHANGE IS NOT WHAT THE REAGAN DEMOCRATS AND MANY PEROTISTAS VOTED FOR ASK PEROT 9312290090 931229 PEPPER AND SALT TO MEET WITH SURE SUCCESS TO GIVE IN TO WHAT THEY WANTED AND YET MY PALMS ARE SOAKING 9312290089 931229 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REP ORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED OPTION EXERCISE EQUAL TO 90 OR MORE OF SHARES SOLD SHOLDS OTHER CLASS OF STOCK XREFLECTS SHARES HELD INDIRECTLY LATE FILING BASE PERIOD IS LESS THAN 3 YEARS OOFFICER ZOTHER BOUGHT OR SOLD DURING THE LAST 12 WEEKS EXPRESSED AS A PERCENTAGE CHANGE OF ONLY THEIR HOLDINGS AT THE START OF THE PERIOD REFLECTS COMPANIES FOR WHICH FILINGS MADE LAST WEEK SHOWED SOME INSIDER ACTIVITY DURING THE LATEST 12 WEEKS EXCLUDED COMPANIES WITH TOTAL TRADES VALUED UNDER 75000 OPTIONRELATED SALES UNEXERCISED OPTIONS COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD 9312290087 931229 BUSINESS BRIEFS LATEX RESOURCES INC COMPLETED ITS ACQUISITION OF A 50 STAKE IN WASTE CONVERSION CORP IN EXCHANGE FOR 100000 SHARES OF RESTRICTED LATEX COMMON STOCK CANADIAN PIONEER ENERGY INC HAS CLOSED ITS ACQUISITION OF ITS PARTNER'S APPROXIMATELY 30 INTEREST IN A BEACON HILL SASKATCHEWAN PROPERTY THE ACQUISITION RAISES THE COMPANY'S INTEREST TO 100 IN TWO GAS PLANTS 19 PRODUCING WELLS AND 18 SHUTIN WELLS AT BEACON HILL PERCEPTRON INC RECEIVED THREE NEW ORDERS TOTALING 82 MILLION FOR EQUIPMENT TO BE USED IN ASSEMBLY PLANTS OPERATED BY GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP EVERGREEN MEDIA CORP COMPLETED ITS PURCHASE OF WWBZFM IN CHICAGO FROM MAJOR BROADCASTING INC FOR 296 MILLION 9312290086 931229 TECHNOLOGY BRIEF CYGNUS THERAPUTIC SYSTEMS CONCERN TO WORK WITH UNIT OF AMERICAN HOME PRODUCTS CYGNUS THERAPEUTIC SYSTEMS AND WYETHAYERST SAID THEY WILL COLLABORATE TO DEVELOP AND MARKET FIVE PRODUCTS THAT USE TRANSDERMAL PATCHES CHIEFLY FOR THE 17 BILLION HORMONEREPLACEMENT MARKET UNDER TERMS WHICH WERE NOT SPECIFIED WYETHAYERST PHARMACEUTICAL RESEARCH UNIT OF NEW YORKBASED AMERICAN HOME PRODUCTS CORP HAS EXCLUSIVE WORLDWIDE MARKETING RIGHTS WHILE CYGNUS A REDWOOD CITY CALIF DRUGDELIVERY COMPANY WILL RECEIVE UPFRONT AND MILESTONE PAYMENTS AS WELL AS A PERCENTAGE OF NET SALES ON ALL PRODUCTS THE MAJORITY OF THE PRODUCTS WILL USE CYGNUS' DRUGDELIVERY TECHNOLOGY 9312290085 931229 TECHNOLOGY BRIEF INFONET SERVICES CORP MCI SELLS ITS 25 HOLDING IN COMPANY TO SHAREHOLDERS INFONET SERVICES CORP SAID ITS SHAREHOLDERS WIDENED THEIR STAKE IN THE COMPANY BY PURCHASING MCI COMMUNICATIONS CORP'S 25 OWNERSHIP STAKE ON A PRORATA BASIS AN MCI SPOKESWOMAN WOULD NOT DISCLOSE THE VALUE OF THE PURCHASE BUT SAID IT REPRESENTS ABOUT 2500 INFONET SHARES MCI A TELECOMMUNICATIONS SERVICES COMPANY ORIGINALLY AGREED TO ACQUIRE A 25 STAKE IN INFONET EL SEGUNDO CALIF AN INTERNATIONAL DATASWITCHING NETWORK AND COMPUTINGSERVICES CONCERN FOR 275 MILLION IN 1990 THE SALE PRICE WASN'T DISCLOSED MCI SAID IT AGREED TO SELL ITS OWNERSHIP INTEREST TO INFONET SHAREHOLDERS BECAUSE OF MCI'S PROPOSED JOINT VENTURE WITH BRITISH TELECOMMUNICATIONS PLC ANNOUNCED EARLIER THIS YEAR 9312290083 931229 EPA GADFLY STINGS HIS AGENCY AS SINNER AGAINST ENVIRONMENT BUT AS FORMER WHISTLEBLOWER HE NEEDN'T FEAR BEING DISCIPLINED BY HIS BOSSES BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL GREGG TOWNSHIP PA HUGH KAUFMAN ISN'T YOUR TYPICAL CIVIL SERVANT DURING HIS 22YEAR CAREER AS AN OFFICIAL WITH THE ENVIRONMENTAL PROTECTION AGENCY HE HAS HOBNOBBED WITH MOVIE STARS AND HOPSCOTCHED THE COUNTRY TO COLLECT 3000 LECTURE FEES FOR SPEECHES ADMIRING RESIDENTS OF ONE COMMUNITY HAVE ELECTED HIM TO THEIR VILLAGE BOARD AND HE HAS TIRELESSLY EXHORTED CITIZENS NOT TO TRUST THE FEDERAL AGENCY THAT PAYS HIS 75000 ANNUAL SALARY MR KAUFMAN MET RECENTLY WITH SOME SUSQUEHANNA VALLEY ACTIVISTS IN THEIR TRAILERHEADQUARTERS NEAR LEWISBURG PA TO DISCUSS WAYS TO PROTEST PLANS BY UNION PACIFIC CORP BASED IN BETHLEHEM TO BUILD A HAZARDOUSWASTE INCINERATOR OVER COFFEE AND SANDWICHES THE 50YEAROLD BUREAUCRAT SUGGESTED THAT LOCAL CITIZENS MAIL DOZENS OF GIFTWRAPPED PACKAGES TO UNION PACIFIC CHAIRMAN DREW LEWIS THE PRESENTS INSIDE THEIR HOUSEHOLD GARBAGE I HAVEN'T FOUND ANYBODY YET TO SAY IT'S ILLEGAL MR KAUFMAN SAYS WITH A CHUCKLE I JUST HAVEN'T FOUND ANYBODY YET TO SAY IT'S LEGAL SUCH GUERRILLATHEATER TACTICS AREN'T EXACTLY STANDARD PROCEDURE FOR THE FEDERAL GOVERNMENT AND WHILE MOST CAREER OFFICIALS ARE SKITTISH ABOUT SAYING ANYTHING NASTY ABOUT THEIR BOSSES NOT MR KAUFMAN HE CHEERFULLY CALLS PRESIDENT CLINTON A SMALLTIME GANEF WHICH IS YIDDISH FOR THIEF OR SOMETIMES RASCAL HE HAS CALLED EPA ADMINISTRATOR CAROL BROWNER AN AMATEUR OF VICE PRESIDENT AL GORE HE SAYS WHEN HE WAS A CONGRESSMAN HE WOULD PULL ME INTO HIS OFFICE AND ASK ME WHAT THE A S WERE DOING NOW HE'S ONE OF THE A S MR KAUFMAN'S SHARP TONGUE HAS OFFENDED SOME OF HIS ENVIRONMENTAL ALLIES BUT HE CAN SPEAK BLUNTLY EVEN IRRESPONSIBLY SOME MIGHT SAY LARGELY THANKS TO HARASSMENT HE RECEIVED AFTER BLOWING THE WHISTLE ON EPA MISMANAGEMENT OF HAZARDOUSWASTE PROGRAMS DURING THE TENURE OF REAGANERA EPA ADMINISTRATOR ANNE BURFORD CONGRESSIONAL AIDES SAY MR KAUFMAN HAS EXAGGERATED HIS ROLE IN MS BURFORD'S ULTIMATE DEPARTURE FROM THE AGENCY THOUGH THEY CREDIT HIM WITH PROVIDING IMPORTANT INFORMATION MR KAUFMAN SO ANNOYED HIGHERUPS THAT WHEN THEY LEARNED HE HAD FILED FOR SICK LEAVE ON A DAY WHEN HE PLANNED AN OFFDUTY MEETING WITH A PENNSYLVANIA CITIZENS' GROUP THEY PUT A TAIL ON HIM ACCORDING TO A 1982 AFFIDAVIT BY A FORMER EPA ASSISTANT INSPECTOR GENERAL IT WAS FORMER ASSISTANT ADMINISTRATOR RITA LAVELLE LATER JAILED FOR LYING TO CONGRESS WHO INITIATED THE PROBE MR KAUFMAN LEARNED OF THE SURVEILLANCE AND FILED A COMPLAINT WITH THE LABOR DEPARTMENT HE NEGOTIATED A LEGAL SETTLEMENT WITH THE EPA AFTER TELLING INVESTIGATORS THAT HE HAD ACCIDENTALLY CHECKED THE WRONG BOX ON HIS LEAVE FORM THE AGENCY PLEDGED TO DEVELOP A MUTUALLY AGREEABLE WORK ASSIGNMENT FOR MR KAUFMAN IN HIS PRESENT POSITION THE INCIDENT VIRTUALLY CEMENTED MR KAUFMAN IN HIS JOB IT ISN'T EASY TO FIRE A WHISTLEBLOWER WHO HAS EVIDENCE IN WRITING THAT HIS AGENCY HAS HARASSED HIM FOR HIS BELIEFS HIS POSITION IS REINFORCED BY HIS HABIT OF TELLING THE PRESS ABOUT EPA BLUNDERS ON MATTERS RANGING FROM TOXIC WASTE AT LOVE CANAL IN NEW YORK TO IRREGULARITIES REGARDING PERMITS FOR A CONTROVERSIAL NEW HAZARDOUSWASTE INCINERATOR IN EAST LIVERPOOL OHIO THESE DAYS HE WORKS OUT OF AN EPA SATELLITE OFFICE IN CRYSTAL CITY VA INSTEAD OF A NAMEPLATE HIS 5BY6 CUBBYHOLE IS SIMPLY MARKED WITH THE NUMBER 14621 THE ROOM IS EQUIPPED WITH A COMPUTER A PHONE AN EPA DIRECTORY AND A HEFTY BLUE VOLUME TITLED FEDERAL CRIMINAL CODE AND RULES YET MR KAUFMAN HAS NO OFFICIAL DUTIES THOUGH NOMINALLY ASSISTANT TO THE DIRECTOR OF HAZARDOUSSITE CONTROL DAVID BENNETT MR KAUFMAN SAYS THAT I NEVER SEE THE GUY HE SPENDS HIS DAYS CHEWING TOBACCO RINGING UP LOCAL ACTIVISTS AND TYPING MEMOS TO THE EPA ADMINISTRATOR A RECENT ONE BREEZILY ASKED MS BROWNER TO LAUNCH A CRIMINAL INVESTIGATION OF HER DEPUTY ROBERT SUSSMAN FOR ALLOWING THE EAST LIVERPOOL INCINERATOR TO OPERATE MS BROWNER WHO LIKE OTHER EPA CHIEFS HAS FOUND IT WISEST TO AVOID CONTACT WITH MR KAUFMAN DECLINES TO COMMENT ABOUT HIM SHE BELIEVES THAT WHISTLEBLOWER PROTECTIONS ARE IMPORTANT SAYS HER SPOKESWOMAN WHO ADDS THAT MS BROWNER DOESN'T BELIEVE MR SUSSMAN IS A SUITABLE TARGET FOR PROSECUTION FOR THE EPA ONE COST OF TOLERATING ITS INHOUSE GADFLY IS AN ENDLESS STREAM OF COMPLAINTS FROM BUSINESS AND GOVERNMENT OFFICIALS I USED TO GET THESE CALLS SAYS WILLIAM REILLY EPA ADMINISTRATOR DURING THE BUSH ADMINISTRATION GOVERNORS SENATORS AND CONGRESSMEN WOULD JUST BE APOPLEPTIC ABOUT MR KAUFMAN'S CRITICISMS EPA OFFICIALS MAINTAIN THAT MR KAUFMAN'S TRIPS ARE TAKEN DURING HIS VACATION AND PERSONALLEAVE TIME AND THAT HE SPEAKS NOT AS AN EPA REPRESENTATIVE BUT AS A PRIVATE CITIZEN TO MANY OF HIS ALLIES MR KAUFMAN IS A HERO I ADMIRE HIM SAYS ED BEGLEY JR AN ACTOR AND ENVIRONMENTAL ACTIVIST WHO HELPED MR KAUFMAN FEND OFF A NUCLEARWASTE DUMP NEAR NORA NEB THE 28 CITIZENS OF THE HAMLET GAVE THANKS BY PUTTING MR KAUFMAN ON THEIR VILLAGE BOARD IN 1990 A MOVE THAT ENABLED HIM TO SERVE ON A LOCAL ENVIRONMENTAL COMMISSION BUT OTHER ENVIRONMENTAL ACTIVISTS HAVE BECOME DISENCHANTED WITH HIS ABRASIVE STYLE HE QUESTIONED THE AGENDAS OF PEOPLE WORKING ON HIS SIDE OF THE ISSUE SAYS LAURA LAKE A FOUNDER OF AMERICANS FOR A SAFE FUTURE A LOS ANGELES GROUP THAT MR KAUFMAN ASSISTED IN BATTLING A NUCLEARWASTE DUMP IN WARD VALLEY CALIF MS LAKE WAS PARTICULARLY UPSET WHEN MR KAUFMAN HARSHLY CRITICIZED REP GEORGE MILLER THE CALIFORNIA DEMOCRAT IS CONSIDERED STRONGLY PROENVIRONMENTAL AND WAS VIEWED AS A POTENTIAL ALLY MR KAUFMAN'S REMARKS AT A 1991 MEETING ABOUT THE WARD VALLEY CONTROVERSY HELD AT SONY CORP'S STUDIOS IN HOLLYWOOD AND ATTENDED BY MANY ACTORS AND OTHER ENTERTAINMENTINDUSTRY FIGURES PROMPTED A TESTY DEFENSE OF MR MILLER FROM ACTOR MIKE FARRELL AMERICANS FOR A SAFE FUTURE EVENTUALLY ASKED MR KAUFMAN TO STOP WORKING WITH THE GROUP HE CONTENDS THAT THE PARTING WAS MUTUAL BASED ON A DISAGREEMENT OVER TACTICS MR KAUFMAN'S LECTURING CAREER WHICH INCLUDED GETTING PAID TO DEBATE FORMER INTERIOR SECRETARY JAMES WATT ALSO HAS BEEN CRIMPED SOMEWHAT SINCE THE MID1980S WHEN HE RODE THE CREST OF ANTIREAGAN ENVIRONMENTALISM UNDER A BAN ON HONORARIA FOR GOVERNMENT EMPLOYEES THAT TOOK EFFECT IN 1991 MR KAUFMAN MAY NO LONGER ACCEPT LECTURE FEES HE ALSO CAN'T BE REIMBURSED FOR TRAVEL AND OTHER EXPENSES THOUGH HE IS FIGHTING A LEGAL BATTLE TO REGAIN THAT PRIVILEGE BUT MR KAUFMAN MAKES CLEAR THAT HE HAS NO INTENTION OF QUITTING AND IF THE EPA BRASS PINS ITS HOPES ON MR KAUFMAN'S RETIREMENT THEY SHOULD CONSIDER THIS HIS FATHER MILTON A CIVIL SERVANT IN THE CENSUS BUREAU'S FOREIGNTRADE DIVISION STILL GOES TO WORK EVERY DAY HE IS 82 9312290081 931229 BUSINESS BRIEF EMULEX CORP CHARGES TO BRING NET LOSS FOR FISCAL SECOND QUARTER EMULEX CORP SAID SIGNIFICANT NONRECURRING CHARGES AND EXPENSES WILL CONTRIBUTE TO A NET LOSS OF BETWEEN 14 MILLION AND 16 MILLION FOR ITS FISCAL SECOND QUARTER ENDED DEC 26 FOR THE YEAREARLIER QUARTER THE COMPANY POSTED NET INCOME OF 22 MILLION OR 20 CENTS A SHARE ON REVENUE OF 268 MILLION THE CHARGES AND EXPENSES WHICH THE COMPUTERPRODUCTS COMPANY HAD PUBLICLY ANTICIPATED IN OCTOBER RELATE PARTLY TO THE COST OF THE PLANNED SPINOFF OF ITS QLOGIC CORP UNIT IN EARLY 1994 THE CHARGES ALSO RELATE TO A LARGER RESTRUCTURING OF ALL OPERATING UNITS OF EMULEX WHICH IS BASED IN COSTA MESA CALIF CHUCK MCBRIDE CHIEF FINANCIAL OFFICER OF EMULEX SAID THE COMPANY IS CLOSING ITALIAN OPERATIONS AND SCALING BACK OPERATIONS IN PUERTO RICO AND CALIFORNIA HE SAID ABOUT 10 OF THE COMPANY'S 500 JOBS ARE BEING CUT 9312290080 931229 BUSINESS BRIEF MAJESTIC MILLS INC PURCHASE OF CORDUROY LINES IS MADE FROM CONE MILLS MAJESTIC MILLS INC SAID IT ACQUIRED CONE MILLS CORP'S CORDUROY BUSINESS THE CLOSELY HELD NEW YORKBASED CONVERTER OF CORDUROY VELVET AND OTHER FABRICS AGREED TO PURCHASE ALL OF CONE'S FINISHED CORDUROY FORWARD COMMITMENTS AND ORDER BOOK CONE IS A LARGE GREENSBORO NC PRODUCER OF DENIM FABRICS THE TERMS OF THE SALE WERE NOT DISCLOSED BUT MAJESTIC PRESIDENT FREDERIC H BAUMGARTEN DESCRIBED THE PURCHASE AS A MULTIMILLIONDOLLAR TRANSACTION HE ALSO SAID CONE WILL CUT DYE AND FINISH APPAREL CORDUROY EXCLUSIVELY FOR MAJESTIC A LINE OF MAJESTICPRINTED CORDUROY WILL ALSO BE PRODUCED AT A CONE PRINTING FACILITY MAJESTIC SALES ARE ESTIMATED AT 50 MILLION THIS YEAR CONE REPORTED SALES OF 590 MILLION FOR THE NINE MONTHS ENDED OCT 3 9312290079 931229 BUSINESS BRIEF RAINBOW TECHNOLOGIES INC SHAREHOLDER LAWSUIT ALLEGES STATEMENTS WERE MISLEADING RAINBOW TECHNOLOGIES INC SAID A SHAREHOLDER HAS FILED A LAWSUIT AGAINST THE COMPANY AND CERTAIN DIRECTORS AND OFFICERS FOR ALLEGEDLY MAKING MISLEADING PUBLIC ANNOUNCEMENTS THE COMPLAINT WHICH SEEKS CLASSACTION STATUS FOR ANY SHAREHOLDERS WHO BOUGHT STOCK BETWEEN MARCH 23 AND OCT 4 ALSO NAMES A PAST DIRECTOR AND OFFICER ACCORDING TO A COMPANY STATEMENT DISCLOSING THE LEGAL ACTION THE STATEMENT SAID RAINBOW MANAGERS THINK THE CLAIMS ARE UNFOUNDED AND THEY INTEND TO DENY ALL THE ALLEGED WRONGDOING AND VIGOROUSLY DEFEND THEIR POSITION SPOKESMEN LAWYERS AND OFFICERS FOR THE IRVINE CALIF COMPUTERPRODUCTS CONCERN WEREN'T AVAILABLE FOR COMMENT OR TO PROVIDE FURTHER DETAIL 9312290078 931229 HEARD ON THE STREET BORDEN WEIGHS SALE OF COMPANY BUT ANALYSTS ARE SCRATCHING THEIR HEADS AT THE PRICE TAG BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL HOW MUCH IS BELEAGUERED BORDEN REALLY WORTH THE QUESTION IS NAGGING AT INVESTORS MANY OF WHOM SUSPECT THEY AREN'T LIKELY TO GET A BIG PAYOFF IN THE STOCK UNTIL THE COWS COME HOME AND WE'RE NOT TALKING ABOUT BORDEN'S SPOKESANIMAL ELSIE OR HER OFFSPRING WE'RE TALKING ABOUT BORDEN'S STATEMENT LAST WEEK THAT ITS BOARD AND MANAGEMENT WOULD ANNOUNCE A COMPREHENSIVE RESTRUCTURING AND REFOCUSING OF BORDEN'S BUSINESS PORTFOLIO BY EARLY JANUARY BORDEN SAID IT HAD EXPLORED THE POSSIBILITY OF SELLING THE ENTIRE COMPANY BUT WAS NOT CURRENTLY ENGAGED IN ANY MERGER TALKS AND WAS NOT AWARE OF ANYONE SEEKING TO ENGAGE IN SUCH DISCUSSIONS PEOPLE CLOSE TO THE SITUATION DISCLOSED THAT HANSON PLC HAD BEEN INTERESTED IN BIDDING FOR BORDEN BUT NOT AT A PRICE DEEMED ADEQUATE BY BORDEN AND INVESTMENT BANKERS REPRESENTING ITS BOARD THE BOARD IS AIMING A LOT HIGHER THAN THE CURRENT STOCK PRICE THE INVESTMENT BANKERS REPRESENTING THE BOARD FROM THE FIRM OF LAZARD FRERES ARE UNDERSTOOD TO HAVE ADVISED DIRECTORS LAST WEDNESDAY THAT BORDEN MIGHT BE ABLE TO FETCH AS MUCH AS 27 A SHARE BY RESTRUCTURING OR SELLING OFF ASSETS PIECEMEAL YESTERDAY BORDEN'S SHARES CLOSED AT 16 7/8 UP 1/8 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WALL STREET ANALYSTS ARE HAVING TROUBLE CRUNCHING BORDEN'S NUMBERS SO THAT THEY YIELD ANYTHING APPROACHING 27 A SHARE BORDEN'S SINGLE MOST VALUABLE ASSET AND THE ONE THAT INDIVIDUALS FAMILIAR WITH BORDEN'S PLANS SAY IS MOST LIKELY TO BE SOLD OFF FIRST IS ITS SPECIALTYCHEMICAL AND INDUSTRIALPRODUCTS DIVISION JOHN MCMILLIN AN ANALYST AT PRUDENTIAL SECURITIES EXPECTS THAT THIS YEAR THE DIVISION WILL HAVE OPERATING PROFIT OF 150 MILLION ON REVENUE OF ABOUT 19 BILLION SPECIALTY CHEMICALS ACCOUNT FOR NEARLY A THIRD OF BORDEN'S TOTAL SALES MR MCMILLIN SAYS THAT THE VALUE OF THE DIVISION IS PROBABLY ABOUT 1325 A SHARE BUT TAKING INTO ACCOUNT THE COMPANY'S LONGTERM DEBT AND BORDEN'S FOOD BUSINESSES MR MCMILLIN SAYS HE HAS TO STRETCH TO GET TO EVEN 22 A SHARE LITTLE MORE THAN A YEAR AGO MR MCMILLIN PUT BORDEN'S BREAKUP VALUE AT 40 A SHARE MY FEELING IS THAT IT'S WORTH MAXIMUM LOW 20S SAYS WILLIAM MAGUIRE AN ANALYST AT MERRILL LYNCH AND THAT'S ONLY IF THERE'S ONE BUYER WHO WANTS TO COME IN AND BUY IT HE ADDS IF THERE IS NONE OR MORE THAN ONE THEN IT'S WORTH LOWER THAN THAT BUYERS WHO HAVE LOOKED AT THE COMPANY WALKED AWAY ACCORDING TO INDIVIDUALS FAMILIAR WITH KOHLBERG KRAVIS ROBERTS & CO THAT NEW YORKBASED LEVERAGED BUYOUT FIRM VALUED BORDEN AT ABOUT 12 A SHARE THE REASONING WHILE NONFOOD CONSUMER PRODUCTS ARE MAKING MONEY THE COMPANY'S DAIRY BUSINESS COULD HAVE A LOSS OF AS MUCH AS 40 MILLION THIS YEAR WHAT'S MORE BORDEN HAS EVEN SUSTAINED BIG MARKETSHARE LOSSES RECENTLY IN ITS PASTA BUSINESS WHERE IT HAD BEEN THE TOPRANKED COMPANY THROUGHOUT MUCH OF THE 1980S MOODY'S INVESTORS SERVICE PUT BORDEN'S 124 BILLION OF LONGTERM DEBT UNDER REVIEW FOR A POSSIBLE DOWNGRADE IN LATE OCTOBER AFTER THE COMPANY POSTED A MEAGER 200000 PROFIT FOR THE THIRD QUARTER NOR IS WALL STREET ENAMORED OF BORDEN'S RECENTLY APPOINTED PRESIDENT AND CHIEF OPERATING OFFICER ERVIN SHAMES MR SHAMES RECENTLY SUCCEEDED ANTHONY D'AMATO IN THAT POST MR D'AMATO RESIGNED UNDER BOARD PRESSURE AMID CRITICISM OF HIS EFFORTS TO TURN BORDEN AROUND BUT WALL STREETERS POINT OUT THAT ALTHOUGH MR SHAMES IS AN EXPERIENCED FOOD MARKETER WHO CAME TO BORDEN THIS YEAR FROM STRIDE RITE WHERE HE WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER HE HAS NO TRACK RECORD AS A TURNAROUND ARTIST SOME MONEY MANAGERS SAY THAT DESPITE BORDEN'S PROMISE TO RESTRUCTURE FOR THE FOURTH TIME SINCE 1989 THEY STILL CHOSE TO BAIL OUT THIS TIME OF YEAR YOU REALLY WANT TO RIDE YOUR STRONGER HORSES SAYS JOHN W LIANG DIRECTOR OF RESEARCH AT FOX ASSET MANAGEMENT IN LITTLE SILVER NJ WE SOLD OUT BORDEN TWO WEEKS AGO BECAUSE IT LOOKED LIKE IT WAS GOING TO BE A MUCH LONGER WORKOUT TIME THAN WE FIRST EXPECTED WE SOLD MOST OF THE BORDEN WE HAD SAYS MALCOLM CLARKE JR COCHIEF EXECUTIVE OF BRUNDAGE STORY & ROSE IN NEW YORK MR CLARKE SAYS THAT PERHAPS IN A YEAR OR TWO WHEN ALL THE SELLING PRESSURE IS OFF OF BORDEN THE STOCK WILL BE UP 30 GUY WYSERPRATTE A NEW YORK TAKEOVERSTOCK TRADER IS ONE OF THE LONE BORDEN BULLS OUT THERE BORDEN HAS A TREMENDOUS MANUFACTURING BASE AND TERRIBLE MARKETING HE SAYS THE PERSON THAT CAN MAXIMIZE THAT MARKETING STRATEGY CAN TURN AROUND THE COMPANY FAST 9312290074 931229 BUSINESS BRIEF FIRST MIDWEST BANCORP ILLINOIS CONCERN IS CLEARED TO START UP MORTGAGE UNIT FIRST MIDWEST BANCORP NAPERVILLE ILL SAID IT RECEIVED REGULATORY CLEARANCE TO BEGIN OPERATION OF ITS NEW MORTGAGE AFFILIATE FIRST MIDWEST MORTGAGE CORP CLAY S GREEN FORMERLY EXECUTIVE VICE PRESIDENTCHIEF FINANCIAL OFFICER AND TREASURER OF SEARS MORTGAGE BANKING GROUP WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE MORTGAGE AFFILIATE IN 1993 FIRST MIDWEST SERVICED ABOUT 630 MILLION IN MORTGAGES AND DURING THE YEAR ORIGINATED RESIDENTIAL MORTGAGES TOTALING ABOUT 270 MILLION THE MORTGAGE AFFILIATE WILL ORIGINATE MORTGAGE LOANS WITHIN FIRST MIDWEST'S CURRENT MARKETS AND THROUGHOUT NORTHERN ILLINOIS THE COMPANY SAID 9312290071 931229 BUSINESS BRIEF GENERAL ELECTRIC CO LIGHTING UNIT SETS VENTURE WITH CHINESE MANUFACTURER GENERAL ELECTRIC CO'S LIGHTING UNIT SAID IT ESTABLISHED A JOINT VENTURE IN CHINA TO MAKE LIGHT BULBS AND RELATED EQUIPMENT THE VENTURE WHICH IS SUBJECT TO THE APPROVAL OF THE SHANGHAI GOVERNMENT WILL BE CALLED GE JIABAO LIGHTING CO AND WILL BE BASED IN SHANGHAI GE LIGHTING WILL HAVE A 65 INTEREST IN THE VENTURE AND SHANGHAI JIABAO INDUSTRY & COMMERCE CO WILL HAVE A 35 INTEREST TERMS WEREN'T DISCLOSED THE DEAL IS THE MOST RECENT IN AN AGGRESSIVE INTERNATIONAL EXPANSION BY CLEVELANDBASED GE LIGHTING ANALYSTS SAY THE PUSH COMES AS GE'S HISTORICALLY STRONG DOMESTIC LIGHTING FRANCHISE FACES INCREASED COMPETITION FROM FOREIGN MANUFACTURERS GE IS BASED IN FAIRFIELD CONN GE LIGHTING MADE SEVERAL MAJOR ACQUISITIONS IN EUROPE IN 1990 AND 1991 AND IT RECENTLY ESTABLISHED JOINT VENTURES IN INDIA INDONESIA AND JAPAN 9312290070 931229 HOST MARRIOTT MULLS FAIRFIELD SALE TAKES NEW YORK HOTEL STAKE BETHESDA MD HOST MARRIOTT CORP SAID IT IS IN TALKS TO SELL MOST OF ITS 30 FAIRFIELD INN HOTELS AND IS FORECLOSING ON TWO OWNERS OF A 39 EQUITY INTEREST IN THE NEW YORK MARRIOTT MARQUIS THE MOVES WERE DISCLOSED IN A SECURITIES AND EXCHANGE COMMISSION FILING LAST WEEK IN CONNECTION WITH A PROPOSED OFFERING OF 175 MILLION COMMON SHARES HOST MARRIOTT SAID IT WOULD RECORD A FOURTHQUARTER CHARGE AGAINST EARNINGS OF ABOUT 11 MILLION TO WRITE DOWN 15 OF THE FAIRFIELD INN PROPERTIES TO THEIR INDIVIDUAL ESTIMATED NET REALIZABLE VALUE A SPOKESMAN SAID ACCOUNTING RULES REQUIRE THE WRITEDOWN EVEN THOUGH THE COMPANY EXPECTS A GAIN ON THE AGGREGATE SALE IF THE SALE IS COMPLETED THE HOTELS WOULD CONTINUE TO OPERATE AS FAIRFIELD INNS UNDER MANAGEMENT BY MARRIOTT INTERNATIONAL INC MARRIOTT CORP SPLIT IN OCTOBER INTO MARRIOTT INTERNATIONAL A MANAGEMENT COMPANY AND HOST MARRIOTT A REALESTATE AND TRAVELCONCESSIONS CONCERN ATLANTA ARCHITECT AND DEVELOPER JOHN C PORTMAN JR SAID HE IS GIVING BACK A 29 INTEREST IN THE NEW YORK MARRIOTT MARQUIS BUT THAT HE AND SOME ASSOCIATES WILL CONTINUE TO OWN 11 OF THE PROPERTY HOST MARRIOTT WHICH OWNS 50 OF THE HOTEL SAID IT ALSO IS ASSUMING CONTROL OF THE 10 INTEREST OWNED BY A LIMITED PARTNERSHIP WHOSE PARTNERS INCLUDE JW MARRIOTT JR AND RICHARD E MARRIOTT JW MARRIOTT IS CHAIRMAN AND PRESIDENT OF MARRIOTT INTERNATIONAL HIS YOUNGER BROTHER RICHARD IS CHAIRMAN OF HOST MARRIOTT A SPOKESMAN CALLED THE FORECLOSURES VERY AMICABLE HOST MARRIOTT SAID IT IS CONSOLIDATING THE TIMES SQUARE HOTEL CO THE PARENT COMPANY OF THE NEW YORK MARRIOTT MARQUIS IN THE 1993 FOURTH QUARTER THE COMPANY SAID THE ACTIONS WILL RESULT IN AN INCREASE IN DEBT AND OTHER LIABILITIES OF APPROXIMATELY 445 MILLION MR PORTMAN'S DEVELOPMENT COMPANY RAN INTO TROUBLE IN 1990 AFTER TAKING ON DEBT RAPIDLY DURING A 1980S EXPANSION HE REACHED A DEBTRESTRUCTURING AGREEMENT WITH ABOUT 50 BANKS AND INVESTORS IN 1991 THAT GAVE HIM FIVE YEARS TO SHORE UP HIS REALESTATE EMPIRE 9312290069 931229 LTV SETS TERMS FOR WARRANTS CLEVELAND LTV CORP SAID IT SET EXERCISE TERMS FOR ITS EXISTING CLASS OF SERIES A WARRANTS HOLDERS OF EACH SERIES A WARRANT ARE ENTITLED TO PURCHASE 05582 LTV COMMON SHARE AT AN EXERCISE PRICE OF 1628 FOR EACH FULL SHARE OF LTV COMMON PURCHASED THE WARRANTS ARE TRADED ON THE NEW YORK STOCK EXCHANGE AND EXPIRE ON JUNE 28 1998 9312290068 931221 BUSINESS BRIEF UHAUL INTERNATIONAL INC GENERAL PARTNERS FILE SUIT OVER ACQUISITION PROPOSAL THE GENERAL PARTNERS OF 17 REALESTATE LIMITED PARTNERSHIPS SUED TO BLOCK UHAUL INTERNATIONAL INC'S OFFER TO ACQUIRE THE PARTNERSHIPS FOR 3095 MILLION THE PARTNERSHIPS WHICH OWN 139 SELFSERVICE STORAGE FACILITIES ARE MANAGED BY SHURGARD INC OF SEATTLE WHOSE CONTROLLING SHAREHOLDER IS A GENERAL PARTNER OF ALL THE PARTNERSHIPS THE TRUCK AND TRAILER RENTAL COMPANY'S BID IS COMPETING WITH A PROPOSAL BY THE GENERAL PARTNERS TO CONSOLIDATE THE PARTNERSHIPS INTO A PUBLICLY TRADED REALESTATE INVESTMENT TRUST THE SUIT FILED IN FEDERAL COURT IN SEATTLE ACCUSES PHOENIXBASED UHAUL OF FAILING TO DISCLOSE THAT ITS BID IS ABOUT 18 LESS THAN THE NET ASSET VALUE OF THE PARTNERSHIPS THE SUIT ALSO ACCUSES UHAUL OF TRYING TO MISLEAD THE LIMITED PARTNERS UHAUL ISSUED A STATEMENT CALLING THE LAWSUIT WITHOUT MERIT UHAUL AND A GROUP OF LIMITED PARTNERS HAVE SUED THE GENERAL PARTNERS IN DELAWARE STATE COURT ACCUSING THEM OF TRYING TO IMPROPERLY BLOCK UHAUL'S BID 9312290067 931229 BIG BOARD CLAIMS A WIN IN ITS BATTLE WITH NASDAQ NEW YORK THE NEW YORK STOCK EXCHANGE IS CLAIMING A VICTORY OF SORTS IN ITS BATTLE WITH ITS ARCHRIVAL THE NASDAQ STOCK MARKET THE BIG BOARD SAID 45 COMPANIES DEFECTED TO THE NEW YORK STOCK EXCHANGE FROM NASDAQ THIS YEAR MARKING THE HIGHEST NUMBER OF DEFECTIONS SINCE 1988 THE BIGGEST TURNCOAT WILL BE CORESTATES FINANCIAL THE LARGEST BANK HOLDING COMPANY ON NASDAQ WHICH TODAY IS SLATED TO JUMP SHIP TO THE BIG BOARD WILLIAM DONALDSON BIG BOARD CHAIRMAN SAID THAT 1993 HAS BEEN THE GREATEST YEAR THE NEW YORK STOCK EXCHANGE HAS EVER HAD DESPITE THE HOOPLA OVER THE DEFECTIONS NASDAQ STILL HAS AN IMPORTANT EDGE OVER THE BIG BOARD THE AUTOMATED ELECTRONIC QUOTATION SYSTEM ATTRACTED A NET 400 NEW COMPANIES THIS YEAR COMPARED WITH THE BIG BOARD'S 274 MR DONALDSON ALSO CLAIMED A NUMBER OF OTHER RECORDS THAT THE EXCHANGE SET THIS YEAR A RECORD 306 COMPANIES WERE LISTED ON THE BIG BOARD UP FROM A PREVIOUS HIGH OF 251 LAST YEAR OF THE 306 A RECORD 191 WERE INITIAL PUBLIC OFFERINGS THAT RAISED 452 BILLION IN CAPITAL LAST YEAR THE BIG BOARD LISTED 165 IPOS THAT YIELDED 345 BILLION IN FRESH CAPITAL 9312290066 931229 LEISURE & ARTS BOOKSHELF TWO DEFENDERS OF THE VICTORIAN UNDERCLASS BY MERLE RUBIN THE WIFE OF A HIGHLY RESPECTED UNITARIAN MINISTER IN THE VICTORIAN MANUFACTURING TOWN OF MANCHESTER ELIZABETH GASKELL 18101865 RAISED FOUR DAUGHTERS LED A BUSY SOCIAL LIFE TOOK PART IN CHARITABLE WORKS AND PROGRESSIVE CAUSES AND WROTE SIX LONG BOLD NOVELS THAT ARE STILL VERY MUCH WORTH READING IN ADDITION TO DOZENS OF STORIES AND A POIGNANT IF FLAWED BIOGRAPHY OF CHARLOTTE BRONTE MARY BARTON 1848 HER FIRST BOOK CAUSED A STIR FOR ITS COMPASSIONATE PORTRAYAL OF A WORKINGCLASS MAN ROUSED TO AN ACT OF VIOLENCE AGAINST A CALLOUS EMPLOYER BUT IT WAS HER SECOND BOOK RUTH 1853 THAT PATRIARCHS FLUNG INTO FIREPLACES TO PRESERVE THEIR WIVES AND DAUGHTERS FROM THIS SYMPATHETIC ACCOUNT OF AN UNWED MOTHER AS JENNY UGLOW POINTS OUT IN HER READABLE AND INTELLIGENT BIOGRAPHY OF THIS NEARLY FORGOTTEN VICTORIAN ELIZABETH GASKELL A HABIT OF STORIES FARRAR STRAUSS GIROUX 690 PAGES 35 MRS GASKELL WAS BY ALL ACCOUNTS AN IMPRESSIVE AND DELIGHTFUL WOMAN WHEN YOU WERE WITH HER A FRIEND REMARKED YOU FELT AS IF YOU HAD TWICE THE LIFE IN YOU SHE WAS ALSO A BORN STORYTELLER CRANFORD HER BESTKNOWN NOVEL WAS HER OWN FAVORITE WHENEVER I AM AILING OR ILL SHE CONFIDED TO JOHN RUSKIN I TAKE CRANFORD' AND I WAS GOING TO SAY ENJOY IT BUT THAT WOULD NOT BE PRETTY LAUGH OVER IT AFRESH HUMOROUSLY DESCRIBED BY ITS AUTHOR AS A TOWN IN POSSESSION OF AMAZONS SINGLE AND WIDOWED LADIES CRANFORD WAS MODELED ON THE VILLAGE OF KNUTSFORD WHERE ELIZABETH GREW UP IN A HOUSEHOLD OF WOMEN RELATIVES TOOK HER IN WHEN HER MOTHER DIED ONLY 13 MONTHS AFTER HER BIRTH THE COUNTRYBRED STORYTELLER NEVER REALLY TOOK TO SMOKY MANCHESTER ALTHOUGH SHE COULDN'T GET ENOUGH OF MORE GLITTERING URBAN CENTERS LIKE LONDON PARIS AND ROME THE CONTRAST BETWEEN THE OLDFASHIONED CHARMS AND MILD TEDIUM OF VILLAGE LIFE AND THE HARSHNESS AND EXCITEMENT OF THE MODERN CITY IS THE THEME OF HER THOUGHTFUL NOVEL NORTH AND SOUTH AS MS UGLOW SHOWS FINDING THE RIGHT BALANCE BETWEEN CONFLICTING CLAIMS WAS ONE OF MRS GASKELL'S CENTRAL CONCERNS WHILE HER FICTION PROBED THE CLASH BETWEEN CITY AND COUNTRY EMPLOYER AND EMPLOYEE DUTY AND PASSION WOMAN AND MAN IN HER OWN LIFE MRS GASKELL WORRIED ABOUT HER DUAL RESPONSIBILITIES AS WOMAN AND ARTIST PRONOUNCING THEM WITH TRUE VICTORIAN JUDICIOUSNESS NOT IMPOSSIBLE BUT DIFFICULT TO BE RECONCILED AUTHOR OF A WOMEN'S BIOGRAPHICAL DICTIONARY AND A STUDY OF GEORGE ELIOT MS UGLOW VIVIDLY EVOKES THE CONTOURS SHADES AND DEPTH OF MRS GASKELL'S RICH CHARACTER THE SINCERE SOCIAL REFORMER AND THE SOCIABLE LADY WHO LOVED GOOD FOOD WITTY COMPANY AND PARIS FASHIONS THE DEPENDABLE MINISTER'S WIFE AND THE STILLROMANTIC SPIRIT WHO LONGED FOR GREATER FREEDOM AND SELFEXPRESSION THAN WAS DEEMED QUITE PROPER WHILE HER BOOKS ALWAYS APPEARED UNDER THE COSILY DOMESTIC NAME MRS GASKELL THE LADY ALWAYS SIGNED HERSELF ELIZABETH GASKELL AND DEPLORED THE VERY IDEA OF SUBSUMING HER IDENTITY IN HER HUSBAND'S THAT WAS IMPLIED IN SIGNING MRS WILLIAM GASKELL WHICH SHE NEVER DID IN AN ERA WHEN FIRST NAMES WERE USED ONLY BY ONE'S NEAREST AND DEAREST JUST ABOUT EVERYONE CALLED WILKIE COLLINS WILKIE THIS AND MORE INTERESTING FACTS CAN BE LEARNED FROM HIS LATEST BIOGRAPHER CATHERINE PETERS IN THE KING OF INVENTORS A LIFE OF WILKIE COLLINS PRINCETON UNIVERSITY PRESS 502 PAGES 2995 THE AUTHOR OF SUCH VICTORIAN THRILLERS AS THE MOONSTONE AND THE WOMAN IN WHITE WAS BY MOST ACCOUNTS THE MOST AFFABLE OF MEN OR AS MS PETERS AMUSINGLY PUTS IT THE ORIGINAL FLEXIBLE FRIEND THE GOLD CARD GOOD FOR ENDLESS CREDIT IN THE BUSINESS OF PERSONAL RELATIONS IRRELIGIOUS AND DISTRUSTFUL OF VICTORIAN CANT THE FRENCH LOVED HIM FOR DEFYING ENGLISH PRUDERY COLLINS WAS ONE OF THE FEW PEOPLE WHO STAYED FRIENDS WITH BOTH CHARLES AND CATHERINE DICKENS AFTER THEIR BITTER SEPARATION WHILE NOT QUITE A FEMINIST COLLINS VIVIDLY PORTRAYED THE PLIGHT OF POWERLESS WOMEN AT THE MERCY OF VILLAINOUS HUSBANDS AND CREATED IN WOMAN IN WHITE THE STRONGMINDED UNMARRIED MARIAN HALCOMBE A SURPRISING HIT WITH MALE READERS A NUMBER OF WHOM WROTE TO THE AUTHOR REQUESTING HER ADDRESS COLLINS HIMSELF LED A DOUBLE LIFE SUPPORTING TWO COMMONLAW WIVES AND FAMILIES EASYGOING KINDLY WILKIE WHO OPPOSED MARRIAGE ON PRINCIPLE PRETTY MUCH STUMBLED INTO THIS TICKLISH SITUATION BY TAKING ON FIRST ONE DESERVING DEPENDENT WOMAN THEN THE OTHER BOTH WIVES WERE OF A LOWER SOCIAL CLASS AS MS PETERS EMPHASIZES WITHOUT MUCH IRONY HE HAD A STRONGERTHANAVERAGE SYMPATHY FOR WOMEN AND SERVANTS IN GENERAL AND WOMEN SERVANTS IN PARTICULAR BETWEEN HIS WILDLY MELODRAMATIC FICTION ON THE ONE HAND AND HIS IRREGULAR PRIVATE LIFE ON THE OTHER COLLINS WHO ALSO CONSUMED LAUDANUM IN DOSES THAT WOULD HAVE KILLED A HORSE OFFERS A BIOGRAPHER AN OPEN INVITATION TO EXPLOITATION IT IS TO HER CREDIT THAT MS PETERS RESISTS SENSATIONALIZING BUT IN TRANSFORMING THIS FAINTLY SINISTER OPIUMEATING BIGAMIST INTO A MILDMANNERED RATHER DULLISH TWO FAMILY MAN WITH AN UNROMANTIC ADDICTION TO A PERFECTLY LEGAL VICTORIAN PRESCRIPTION DRUG SHE ALSO MANAGES SOMEHOW TO LOSE SIGHT OF THE INNER MAN WHOEVER THAT MIGHT HAVE BEEN 9312290065 931229 BUSINESS BRIEF JASON INC COMPANY TO ACQUIRE DELTAK IN 30 MILLION TRANSACTION JASON INC SAID IT AGREED TO ACQUIRE CLOSELY HELD DELTAK CORP FOR 30 MILLION DELTAK A MINNEAPOLIS MAKER OF WASTEHEAT RECOVERY BOILERS FOR THE POWERGENERATION INDUSTRY AS WELL AS SPECIALTY BOILERS FOR INDUSTRIAL APPLICATIONS WILL ADD ABOUT 75 MILLION TO JASON'S ANNUAL REVENUE JASON SAID ADDING THAT IT WILL FINANCE THE PURCHASE OF THE 350EMPLOYEE CONCERN WITH BANK BORROWINGS JASON BASED IN MILWAUKEE MAKES AUTOMOTIVETRIM PRODUCTS INDUSTRIAL FINISHING PRODUCTS PRECISION COMPONENTS AND PRODUCTS FOR THE POWERGENERATION INDUSTRY DELTAK WHICH WENT PRIVATE IN 1989 IS OWNED BY AN INVESTOR GROUP THAT INCLUDES GOLDNER HAWN JOHNSON & MORRISON MINNEAPOLIS CHEMICAL VENTURE PARTNERS NEW YORK AND MEMBERS OF DELTAK MANAGEMENT JASON SAID IT EXPECTS TO CLOSE THE PURCHASE ABOUT FEB 1 9312290064 931229 TEXAS JOURNAL TRACKING TEXAS THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR REMAINED FLAT AT 11116 IN THE MOST RECENT WEEK AS TEXAS REFINERY OUTPUT FELL AND INITIAL UNEMPLOYMENT CLAIMS ROSE FROM A WEEK EARLIER THE AVERAGE MANUFACTURING WORKWEEK ALSO REMAINED FLAT ACCORDING TO THE LATEST AVAILABLE DATA THE ANNUAL GROWTH RATE OF THE TEXAS INDEX FELL TO 303 FROM A REVISED 308 A WEEK EARLIER 9312290062 931229 INCOMETAX FORMS ARRIVE BY MAIL STARTING MONDAY WASHINGTON JUST IN CASE YOU'VE FORGOTTEN THE INTERNAL REVENUE SERVICE WANTS YOU TO KNOW THAT INCOMETAX FORMS WILL BEGIN TO SHOW UP IN YOUR MAILBOX MONDAY FOR THE TYPICAL TAXPAYERS THE IRS SAID THE GOOD NEWS IS THAT THE TAXRATE INCREASES ENACTED LAST YEAR BY CONGRESS WILL HIT ONLY THE TOP 2 OF TAXPAYERS AND THE BESTOFF SOCIAL SECURITY RECIPIENTS THE BAD NEWS HOWEVER IS THAT THE IRS SAYS DOING YOUR TAXES WILL TAKE A BIT LONGER THIS YEAR THE AGENCY ESTIMATED THAT IT WILL TAKE 16 MINUTES MORE TO FILE THE STANDARD FORM 1040 FOR 1993 THAN IT TOOK THE YEAR BEFORE IN ALL THE AGENCY ESTIMATES THAT THE TYPICAL 1040 FILER WILL SPEND 10 HOURS AND 32 MINUTES KEEPING RECORDS STUDYING THE 1993 FORMS FILLING THEM OUT AND SENDING THEM TO THE IRS BUT THE IRS NOTED THAT ABOUT 25 MILLION MARRIED COUPLES WITHOUT DEPENDENTS AND WITH INCOME UNDER 50000 WILL BE ABLE TO USE THE SIMPLEST FORM THIS YEAR THE FORM 1040EZ IN THE PAST ONLY SINGLE TAXPAYERS COULD USE IT THE IRS FIGURES TAXPAYERS WHO USE THIS FORM WILL SPEND ONLY TWO HOURS AND 22 MINUTES ON THEIR TAXES THAT'S UP FROM ONE HOUR AND 51 MINUTES THE YEAR BEFORE IN ALL THE IRS IS MAILING 86 MILLION PACKAGES THIS YEAR TO SAVE MONEY IT SENT POSTCARDS TO 22 MILLION TAXPAYERS WHO USED PAID TAX PREPARERS LAST YEAR THE POSTCARDS MAY BE USED TO ORDER FORMS FROM THE IRS OR TO PROVIDE LABELS FOR TAXPAYERS TO GIVE THE TAX PREPARERS 9312290061 931229 VIACOM PARTNERS SEEK MORE CLOUT FOR ADDED CASH BLOCKBUSTER NYNEX WANT BETTER TERMS FOR AIDING IN BID FOR PARAMOUNT BY LAURA LANDRO AND GAUTAM NAIK STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BLOCKBUSTER ENTERTAINMENT CORP AND NYNEX CORP ARE SEEKING TOUGH NEW TERMS FROM VIACOM INC IN RETURN FOR A BIGGER CASH INVESTMENT TO ENABLE VIACOM TO SWEETEN ITS BID FOR PARAMOUNT COMMUNICATIONS INC ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS BUT NYNEX WHICH HAS ALREADY AGREED TO INVEST 12 BILLION IN VIACOM'S BID FOR PARAMOUNT IS COMING UNDER INCREASED PRESSURE FROM NEW YORK LEGISLATORS AND CONSUMER GROUPS WHO FEAR THAT NYNEX'S TELEPHONE CUSTOMERS WILL BE SUBSIDIZING THE INVESTMENT IN THE ENTERTAINMENT AND PUBLISHING GIANT BLOCKBUSTER WHICH HAS ALREADY AGREED TO INVEST 600 MILLION IN THE VIACOM BID IS UNDER NO SUCH PRESSURE AND IS SAID TO BE EAGER TO INVEST MORE IN THE PARAMOUNT BID ACCORDING TO A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION BLOCKBUSTER HAS JUST AMENDED ITS CREDIT AGREEMENT WITH A GROUP OF BANKS TRIPLING ITS CREDIT LINE UNDER THE AGREEMENT TO 1 BILLION BUT PEOPLE FAMILIAR WITH THE SITUATION SAY BOTH BLOCKBUSTER AND NYNEX ARE SEEKING CONSIDERABLY ENHANCED ECONOMIC AND MANAGERIAL CLOUT THAN THE TWO INVESTORS WERE GIVEN UNDER THEIR EXISTING DEAL WITH VIACOM VIACOM NYNEX AND BLOCKBUSTER DECLINED TO COMMENT IN A LETTER TO THE NEW YORK PUBLIC SERVICE COMMISSION NEW YORK STATE SEN FRANZ S LEICHTER SAID HE IS CONCERNED THAT A POSSIBLE FURTHER INVESTMENT BY NYNEX IN VIACOM'S BID FOR PARAMOUNT WOULD BE SUBSIDIZED BY THE USERS OF NYNEX TELEPHONE SERVICE MR LEICHTER NOTED THAT SINCE THE RATES OF NEW YORK TELEPHONE ARE SUBSTANTIALLY ABOVE THE DIVIDEND ON THE VIACOM PREFERRED STOCK NYNEX IS GETTING FOR ITS INVESTMENT I CAN ONLY ASSUME THAT THE TELEPHONE USERS OF NEW YORK WILL BE SUBSIDIZING NYNEX'S INVESTMENT IN HOLLYWOOD HE ADDED IT IS LOGICAL TO CONCLUDE THAT THE TELEPHONE RATES IN NEW YORK ARE TOO HIGH IF NYNEX HAS ENOUGH EXCESS CASH TO INVEST IN BUSINESS VENTURES WHICH WILL NOT IMMEDIATELY SUBTRACT COSTS FROM THE CONSUMER'S BILL WALL STREET TRADERS SAY VIACOM NEEDS AT LEAST 600 MILLION MORE IN CASH TO TOP QVC NETWORK INC'S 97 BILLION OFFER FOR PARAMOUNT WHICH IN A MAJOR TURNAROUND LAST WEEK DROPPED ITS AGREEMENT TO BE ACQUIRED BY VIACOM IN FAVOR OF A NEW AGREEMENT WITH QVC BUT UNDER THE AUCTION RULES PARAMOUNT ESTABLISHED TO SELL ITSELF TO THE HIGHEST BIDDER VIACOM CAN STILL COME BACK WITH A HIGHER OFFER BECAUSE OF VOLATILITY IN THE PRICES OF QVC AND VIACOM SHARES THE CASH AND STOCK OFFERS FOR PARAMOUNT HAVE FLUCTUATED WIDELY IN RECENT DAYS AS OF YESTERDAY QVC'S OFFER OF 97 BILLION OR 8056 A SHARE WAS BARELY MORE THAN VIACOM'S OFFER OF 95 BILLION OR 7940 A SHARE AT THIS POINT THE DIFFERENCE BETWEEN THE TWO OFFERS HAS VIRTUALLY COLLAPSED SAYS GUY WYSERPRATTE HEAD OF A FIRM THAT TRADES TAKEOVER STOCKS SUCH COMPARISONS CAN BE MISLEADING BECAUSE TRADERS ARE VALUING QVC STOCK BASED ON THE LIKELIHOOD THAT IT WILL WIN THE CONTEST AND ACQUIRE PARAMOUNT VIACOM STOCK IS TRADING ON THE ASSUMPTION THAT ITS CHAIRMAN SUMNER REDSTONE MAY NOT TOP QVC'S BID THE GREATER A COMPANY'S CHANCES OF WINNING THE TAKEOVER BATTLE THE MORE TRADERS SELL ITS STOCK THE WINNING OFFER IS LIKELY TO BE THE ONE WITH THE MOST CASH BECAUSE OF THE VOLATILITY OF THE TWO BIDDERS' STOCK PRICES VIACOM IS CURRENTLY OFFERING 85 A SHARE IN CASH FOR 51 OF PARAMOUNT SHARES 7 LESS THAN QVC'S OFFER OF 92 A SHARE IN CASH FOR 51 OF THE SHARES IF VIACOM WERE TO INCREASE THE CASH PORTION OF ITS OFFER TO 95 A SHARE FOR 51 OF PARAMOUNT'S 120 MILLION SHARES OUTSTANDING IT WOULD NEED AN ADDITIONAL 600 MILLION THOUGH VIACOM HAS REPORTEDLY TALKED TO A NUMBER OF OTHER POTENTIAL INVESTORS ITS BEST BET FOR GETTING MORE CASH MAY LIE WITH BLOCKBUSTER AND NYNEX BUT THOSE COMPANIES REPORTEDLY HAVE BEEN DISSATISFIED WITH THE TERMS OF THEIR ORIGINAL AGREEMENT WITH VIACOM WHICH GAVE THEM NO VOTING CONTROL AND LITTLE MANAGERIAL SAY EACH GOT ONE SEAT ON THE BOARD OF VIACOM AND SHARES OF PREFERRED STOCK WITH A 5 DIVIDEND CONVERTIBLE INTO VIACOM NONVOTING CLASS B SHARES AT 70 A SHARE SOME OBSERVERS ON WALL STREET SPECULATE THAT BLOCKBUSTER AND NYNEX MAY BOTH SEEK TO LOWER THAT CONVERSION PRICE WHICH REPRESENTS A 50 PREMIUM OVER THE CURRENT PRICE OF VIACOM'S CLASS B SHARES WHICH FELL 125 CENTS TO 4650 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE YESTERDAY MOST CONVERTIBLE PREFERREDS ARE DONE AT A PRICE THAT IS 20 ABOVE THE LEVEL AT WHICH YOU BUY IT NOTES LISBETH BARRON MEDIA ANALYST WITH SG WARBURG SECURITIES BOTH BLOCKBUSTER AND NYNEX COULD ALSO DEMAND THAT THEIR PREFERRED SHARES BE CONVERTIBLE INTO VIACOM CLASS A COMMON RATHER THAN NONVOTING CLASS B COMMON STOCK VIACOM'S MR REDSTONE CONTROLS VIACOM THROUGH HIS OWNERSHIP OF MORE THAN 80 OF THE CLASS A ACCORDING TO MS BARRON VIACOM COULD ISSUE 23 MILLION NEW CLASS A SHARES AND MR REDSTONE WOULD STILL HAVE 51 CONTROL OF THE COMPANY BLOCKBUSTER AND NYNEX HOWEVER ARE SAID TO WANT ADDITIONAL BOARD SEATS SOME ON WALL STREET BELIEVE THAT BECAUSE OF THE PRESSURES ON NYNEX BLOCKBUSTER MAY BE THE ONE THAT ULTIMATELY SUPPLIES MOST OR ALL OF ANY ADDITIONAL CASH FOR VIACOM TO RAISE ITS BID THOSE PRESSURES REFLECT A GENERAL CONCERN AMONG CONSUMER GROUPS AND REGULATORS THAT THE REGIONAL TELEPHONE GIANTS WILL USE THE REVENUE FROM THEIR REGULATED PHONE BUSINESS TO DIVERSIFY INTO RISKY NEW VENTURES NYNEX USED BORROWINGS AND OTHER FUNDS TO FINANCE ITS ORIGINAL INVESTMENT IN VIACOM AND HAS SAID IT WON'T USE RATEPAYER REVENUE FOR SUCH OUTSIDE INVESTMENTS WHICH WOULD REQUIRE STATE REGULATORY APPROVAL IN ANY EVENT EVEN IF NYNEX DOESN'T DIP INTO ITS TELEPHONE UNITS' COFFERS TO PUMP UP ITS 12 BILLION INVESTMENT IN VIACOM BORROWING FUNDS FOR SUCH AN INVESTMENT IS ALREADY A MORE EXPENSIVE PROPOSITION LAST WEEK MOODY'S INVESTORS SERVICE INC DOWNGRADED ABOUT 25 BILLION OF NYNEX'S LONGTERM DEBT ON THE EXPECTATION THAT THE COMPANY WILL CONTINUE TO EXPAND INTO NONTELEPHONE SERVICES THAT ARE HIGHRISK RICHARD KESSEL EXECUTIVE DIRECTOR OF NEW YORK STATE'S CONSUMER PROTECTION BOARD IN NEW YORK CITY EXPRESSED ANGER THAT NYNEX'S INITIAL INVESTMENT IN VIACOM COULD HAVE ALREADY MADE IT MORE EXPENSIVE FOR NYNEX TO BORROW FUNDS WHO PAYS FOR THAT IN THE LONG RUN RATEPAYERS HE SAYS MR KESSEL ALSO NOTES THAT NYNEX IS CONSIDERING MAJOR CUTS IN ITS WORK FORCE THE COMPANY IS SAID TO BE WEIGHING CUTS OF ABOUT 22000 JOBS OVER THREE YEARS BUT THERE'S A DEAD WALL OF SILENCE ABOUT WHETHER SAVINGS FROM SUCH CUTS WOULD BENEFIT RATEPAYERS MEANWHILE QVC'S STOCK GOT HIT BY MORE SELLING YESTERDAY PARTLY IN RESPONSE TO AN ARTICLE IN THE WALL STREET JOURNAL SAYING THE WINNING BIDDER'S EARNINGS COULD BE REDUCED BY ANNUAL CHARGES OF 145 MILLION TO 290 MILLION THOSE CHARGES WOULD REPRESENT GOODWILL THE PREMIUM BEING PAID OVER PARAMOUNT'S BOOK VALUE QVC FELL 1625 A SHARE TO 37875 ON THE NASDAQ STOCK MARKET ON HEAVY VOLUME OF 17 MILLION SHARES JOHNNIE L ROBERTS AND RANDALL SMITH CONTRIBUTED TO THIS ARTICLE 9312290060 931229 INTERNATIONAL MARKET WATCHDOG TO STUDY EURO DISNEY'S ACCOUNTING SPECIAL TO THE WALL STREET JOURNAL PARIS THE COMMISSION DES OPERATIONS DE BOURSE THE FRENCH MARKET WATCHDOG CONFIRMED REPORTS YESTERDAY THAT IT HAS BEEN ASKED TO LOOK INTO EURO DISNEY SCA'S DECISION TO CHANGE ACCOUNTING METHODS IN THE GROUP'S 199293 FISCAL YEAR THE REQUEST CAME IN A LETTER FROM A GROUP REPRESENTING MINORITY SHAREHOLDERS OF EURO DISNEY AS REPORTED THE FRENCH THEME PARK AND HOTELS OPERATOR POSTED A WIDERTHANEXPECTED LOSS OF 53 BILLION FRANCS 9145 MILLION FOR THE YEAR ENDED SEPT 30 MUCH OF THAT LOSS WAS ATTRIBUTABLE TO A 32 BILLIONFRANC CHARGE RESULTING FROM A CHANGE IN ACCOUNTING FOR PREOPENING AND STARTUP COSTS AS OF OCT 1 1992 THE SHAREHOLDERS GROUP IS ASKING THE COB TO EXAMINE WHETHER EURO DISNEY SHAREHOLDERS AND HOLDERS OF EURO DISNEY'S CONVERTIBLE BONDS SHOULD HAVE BEEN NOTIFIED OF THE CHANGE IN ACCOUNTING PROCEDURE AS SOON AS THE DECISION WAS MADE THE LETTER ARGUED THAT FAILURE TO PUBLICIZE THE CHANGE RAN COUNTER TO THE RIGHTS AND INTEREST OF HOLDERS OF EURO DISNEY CONVERTIBLE BONDS WHICH HAVE PLUNGED RECENTLY ALONG WITH EURO DISNEY'S SHARE PRICE AS THE GROUP'S CREDITOR BANKS AND WALT DISNEY CO WHICH OWNS 49 OF THE COMPANY TRY TO HAMMER OUT A RESTRUCTURING PLAN EURO DISNEY SHARES FELL 135 FRANCS OR 44 TO CLOSE AT 2905 FRANCS ON THE PARIS STOCK EXCHANGE YESTERDAY 9312290059 931229 TECHNOLOGY BRIEF ABBOTT LABORATORIES INC BIAXIN LISTED AS TREATMENT FOR AIDSRELATED INFECTION ABBOTT LABORATORIES INC ABBOTT PARK ILL SAID IT RECEIVED PERMISSION FROM THE FOOD AND DRUG ADMINISTRATION TO LIST ITS ANTIBIOTIC BIAXIN AS A TREATMENT FOR AN AIDSRELATED INFECTION KNOWN AS DISSEMINATED MYCOBACTERIUM AVIUM COMPLEX DISSEMINATED MAC IS THE MOST COMMON SYSTEMIC BACTERIAL INFECTION IN PATIENTS WITH ACQUIRED IMMUNE DEFICIENCY SYNDROME ABBOTT SAID BIAXIN ITS BRAND NAME FOR CLARITHROMYCIN IS THE FIRST DRUG TO GET SUCH FDA PERMISSION FOR THE TREATMENT OF THE INFECTION ABBOTT SAID STUDIES SHOWED BIAXIN DECREASES THE MAC ORGANISM IN THE BLOOD THE COMPANY IN A NEWS RELEASE QUOTED RICHARD E CHAISSON OF JOHNS HOPKINS UNIVERSITY SCHOOL OF MEDICINE AS SAYING THAT CLARITHROMYCIN IS AN EFFECTIVE TREATMENT FOR MAC INFECTION DR CHAISSON HAS STUDIED CLARITHROMYCIN IN AIDS PATIENTS WITH DISSEMINATED MAC THE PRESCRIPTION DRUG BIAXIN ALSO TREATS UPPERRESPIRATORY INFECTIONS AND IS EXPECTED TO HAVE 1993 SALES OF 400 MILLION AN ABBOTT SPOKESMAN SAID 9312290058 931229 MARKETING BRIEF PARK COMMUNICATIONS INC SUBSIDIARY OF HOLLINGER PURCHASES 33 PUBLICATIONS A HOLLINGER INC SUBSIDIARY SAID IT ACQUIRED 33 PUBLICATIONS FROM PARK COMMUNICATIONS INC AS PART OF HOLLINGER'S CONTINUING DRIVE TO EXPAND ITS OPERATIONS IN THE US TERMS WEREN'T DISCLOSED AMERICAN PUBLISHING CO THE UNIT OF TORONTOBASED HOLLINGER SAID THE PURCHASE INCLUDES 11 DAILY NEWSPAPERS SEVEN WEEKLIES 13 FREE SHOPPING GUIDES AND TWO MONTHLY NEWSPAPERS THE DAILIES HAVE A COMBINED PAID CIRCULATION OF 37675 HOLLINGER WHICH UNSUCCESSFULLY BID LAST YEAR TO ACQUIRE NEW YORK'S DAILY NEWS HAS ACTIVELY ADDED TO ITS STRING OF US NEWSPAPERS IN RECENT YEARS THE LATEST ACQUISITIONS BRING THE COMPANY'S US HOLDINGS TO 265 PUBLICATIONS IN 30 STATES INCLUDING 98 DAILIES WITH A COMBINED PAID CIRCULATION OF 2145790 PARK COMMUNICATIONS ITHACA NY SAID THE SALE OF THE PUBLICATIONS WHICH ARE IN VARIOUS STATES WILL ALLOW IT TO CONTINUE TO FOCUS RESOURCES ON LARGER PUBLICATIONS 9312290057 931229 PURCHASE OF NUTRI/SYSTEM IS COMPLETED BY HEICO INC NEW YORK HEICO INC SAID IT COMPLETED ITS ACQUISITION OF WEIGHTLOSS COMPANY NUTRI/SYSTEM INC WHICH EMERGED FROM BANKRUPTCYCOURT PROCEEDINGS YESTERDAY MICHAEL HEISLEY CHAIRMAN SAID HEICO HAS ACQUIRED THE NUTRI/SYSTEM NAME AND OTHER ASSETS IN AN INTERVIEW MR HEISLEY SAID HE PLANS TO INJECT 15 MILLION INTO THE COMPANY AND EXPAND ITS FOCUS BEYOND WEIGHT LOSS INTO AREAS SUCH AS WELLNESS HE PLANS TO INSTALL A COMPUTERIZED GOODHEALTH PROGRAM DEVELOPED FOR MAJOR CORPORATIONS IN MANY NUTRI/SYSTEM CENTERS MR HEISLEY HAS BEEN NEGOTIATING FOR MONTHS TO TAKE CONTROL OF THE CHAIN EARLIER IN A DEAL WITH THE COMPANY'S BANK GROUP HE ACQUIRED MOST OF NUTRI/SYSTEM'S DEBT HEICO HAS BEEN OPERATING THE WEIGHTLOSS CHAIN WHILE IT HAS BEEN IN BANKRUPTCY MR HEISLEY'S INITIAL EFFORTS TO TAKE CONTROL OF THE COMPANY MET RESISTANCE FROM SOME OF THE COMPANY'S FRANCHISEES WHO FAVORED RIVAL BIDDERS MR HEISLEY SAID HE NOW HAS THE SUPPORT OF MOST FRANCHISEES NUTRI/SYSTEM RAN INTO TROUBLE IN APRIL WHEN ITS BANK GROUP SEIZED ITS CASH AND BANK ACCOUNTS THE COMPANY WAS FORCED TO CLOSE ITS 283 COMPANYOWNED STORES MR HEISLEY SAID 80 COMPANYOWNED STORES HAVE REOPENED AND THAT HE PLANS TO REOPEN MOST OF THE OTHER COMPANY STORES NUTRI/SYSTEM BASED IN HORSHAM PA HAS 875 WEIGHTMANAGEMENT CENTERS INCLUDING THE FRANCHISEES 9312290056 931229 BUSINESS BRIEF NTN COMMUNICATIONS INC INTERACTIVETV FIRM TO BUY NEW WORLD COMPUTING INC NTN COMMUNICATIONS INC CARLSBAD CALIF AGREED IN PRINCIPLE TO BUY NEW WORLD COMPUTING INC A PRIVATELY HELD DEVELOPER OF COMPUTER AND VIDEOGAME SOFTWARE FOR 10 MILLION A SPOKESMAN FOR NTN SAID THE PROPOSED TRANSACTION CALLS FOR NTN TO ACQUIRE ALL OF NEW WORLD'S STOCK OUTSTANDING FOR ONE MILLION SHARES OF NTN'S COMMON A DEFINITIVE AGREEMENT IS EXPECTED TO BE REACHED BY FRIDAY NEW WORLD BASED IN AGOURA HILLS CALIF HAS ABOUT 7 MILLION IN ANNUAL SALES AND AN ESTIMATED PRETAX PROFIT OF 1 MILLION FOR 1993 IT HAS PRODUCED 18 COMPUTER SOFTWARE TITLES AND HAS DEVELOPED A NUMBER OF SEGA GENESIS AND NINTENDO CARTRIDGE TITLES PAT DOWNS PRESIDENT OF NTN SAID THE CREATIVE STAFF OF NEW WORLD WILL CONTRIBUTE GREATLY TO THE NEW PRODUCT DEVELOPMENT FOR ALL OF THE FUTURE NTN GAMES AND SHOWS NTN A PRODUCER AND BROADCASTER OF INTERACTIVE TELEVISION GAME SHOWS AND EDUCATIONAL PROGRAMS CURRENTLY FEATURES 14 HOURS OF DAILY INTERACTIVE PROGRAMMING 9312290055 931229 REVIEW & OUTLOOK EDITORIAL EUROPE CONFRONTS WELFARE FOR LIBERALS AND SOCIALISTS THE ERECTION OF THE WELFARE STATE IS ONE OF THE 20TH CENTURY'S GRAND ACHIEVEMENTS WELL NOTHING LASTS FOREVER IN EUROPE IT IS UNIVERSALLY ACKNOWLEDGED NOW THAT THE CURRENT WELFARE SYSTEMS ARE UNSUSTAINABLE IT'S JUST THAT WHOLESALE REFORM IS POLITICALLY UNACCEPTABLE SO THE CHANGES COME BY STEALTH OVER THE SUMMER THE BRITISH SOCIAL SECURITY MINISTER PETER LILLEY PRINTED A PAMPHLET THAT CHARTED THE INEXORABLE RISE OF WELFARE COSTS IN BRITAIN EVEN DURING THE THATCHER YEARS THE REPORT NOTED SOCIAL SECURITY COSTS GREW IN REAL TERMS BY 37 A YEAR SINCE THEN THE AIR HAS BEEN THICK WITH DRAMATIC HEADLINES SUCH AS TORIES TO CRACK DOWN ON WELFARE BY CUTTING DOLE OTHER GOVERNMENT MINISTERS HAVE AIRED AMBITIOUS IDEAS ON HOW TO RESTRUCTURE THE WELFARE STATE THE DEBATE BOILED WITH RADICAL THINKING FROM ALL SIDES BUT WHEN THE ACTUAL REFORMS CAME IN THEY WERE MODEST ACROSS EUROPE WE ARE SEEING SIMILAR CAUTION THE PROBLEM IS THAT THOUGH VOTERS SENSE THAT THE WELFARE STATE HAS BECOME OUTMODED THEY SEEM UNWILLING TO ACCEPT CHANGE MORE PRECISELY CHANGE IS UNACCEPTABLE TO VOCAL SECTIONS OF THE ELECTORATE THE POSTWAR WELFARE SYSTEMS WERE DESIGNED FOR AN AGE WHEN MANY OF THE POOR HELD JOBS NOW JOB HOLDERS TEND NOT TO BE POOR THE SYSTEM WAS DESIGNED FOR AN AGE IN WHICH A PERSON'S EARNING PATTERNS OVER A LIFETIME WERE RELATIVELY PREDICTABLE NOW BECAUSE FAMILIES ARE MORE PRONE TO SOCIAL BREAKDOWN AND PEOPLE ARE MORE LIKELY TO CHANGE JOBS AND CAREERS A PERSON'S EARNING PATTERN IS UNPREDICTABLE BUT THESE AND OTHER SOCIAL CHANGES NOTABLY INCREASING LONGEVITY HAVEN'T YET SHAKEN PEOPLE'S BASIC CONCEPTION OF THE WELFARE STATES WHICH TURN OUT TO BE EXTREMELY CONSERVATIVE INTERESTINGLY NO EUROPEAN NATION EVEN CONTEMPLATES ALTERING ITS WELFARE MODEL THE SOCIAL INSURANCE MODEL THAT PREVAILS IN GERMANY ITALY AND FRANCE CHANNELS FUNDS TO MIDDLECLASS FAMILIES WHICH IS WHAT THE CLINTON ADMINISTRATION WOULD LIKE TO COMMENCE DOING IN THE US IT IS STILL UNTHINKABLE IN THESE COUNTRIES TO SHIFT TO A SAFETY NET MODEL IN WHICH GOVERNMENT MAINLY INTERVENES ON BEHALF OF THOSE WHO FALL BELOW A CERTAIN STANDARD OF LIVING IN GERMANY SOCIAL WELFARE SPENDING CONSUMED 26 OF GDP IN 1970 BUT NOW CONSUMES 36 SINCE WELFARE COSTS ARE PAID FOR BY EMPLOYER AND EMPLOYEE CONTRIBUTIONS THESE COSTS ARE DIRECTLY REFLECTED IN LABOR COSTS BUSINESS HAS REACTED QUICKLY THROUGH LAYOFFS MOSTLY YET GOVERNMENT REFORM HAS BEEN MODEST IN GERMANY AS IN BRITAIN THERE HAS BEEN SOME RADICAL TALK THE GOVERNMENT IS SEARCHING FOR WAYS TO INDUCE ITS COMFY UNIVERSITY STUDENTS TO FINISH THEIR EDUCATIONS SOONER THE AVERAGE GRADUATING AGE IS YAWN 29 OUTSIDE OF GERMANY MOST GOVERNMENTS HAVE BEEN CONTENT TO PUSH THROUGH REFORMS THAT DON'T AFFECT CURRENT RECIPIENTS OR WHICH WON'T TAKE EFFECT FOR SEVERAL YEARS THE BRITISH GOVERNMENT PROPOSES RAISING THE FEMALE RETIREMENT AGE TO 65 BUT THE REFORM WON'T TAKE EFFECT UNTIL 2010 PENSION REFORM IN FRANCE WHICH PASSED RELATIVELY QUIETLY IS BEING IMPLEMENTED OVER THE NEXT 15 YEARS ALL OF THIS AMOUNTS TO GREENEYESHADE WELFARE REFORM WE FEAR THAT THE CURRENT COVERT REFORMS WILL NOT STEM THE FLOW OF GOVERNMENT RED INK OR RESTORE WORK INCENTIVES COUNTRIES MAY FIND THAT UNEMPLOYMENT WON'T BUDGE WITHOUT SHARP CHANGES IN THE WAY BENEFITS ARE STRUCTURED AND PAID FOR AT THAT POINT THE SOFTLY SOFTLY APPROACH WILL BE INSUFFICIENT IT WILL BE HELPFUL TO HAVE A LARGER VISION 9312290054 931229 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB HEADING WEST OUT OF WASHINGTON IT'S EASY TO SPOT SOMETHING THAT'S VIRTUALLY LOST IN THE CAPITAL'S HAZE POLITICALLY BRUCE BABBITT IS ONE OF THE MOST IMPORTANT FIGURES IN THE CLINTON ADMINISTRATION AS SECRETARY OF THE INTERIOR MR BABBITT HAS PRACTICALLY NO VISIBILITY IN WASHINGTON BUT VAST INFLUENCE OVER HUGE SWATHS OF THE COUNTRY OUT THERE HE IS OVERSEEING WHAT HE CALLS THE EVOLUTION OF A NEW WEST A PLACE WITH A FAR DIFFERENT ECONOMIC BASE AND A POTENTIALLY DIFFERENT POLITICAL OUTLOOK THAN THE OLD WEST THE WHITE HOUSE THINKS THIS NEW WEST HAS THE POTENTIAL TO BECOME A SOLID BASE OF SUPPORT AND IT IS COUNTING ON MR BABBITT A FORMER GOVERNOR OF ARIZONA AND ONETIME PRESIDENTIAL CANDIDATE TO HANDLE THE EVOLUTION AS A DEMOCRAT WHO WAS ELECTED THREE TIMES IN ONE OF THE MOST CONSERVATIVE STATES IN THE NATION HE HAS A SENSE OF HOW TO DO IT STILL THE RIDE INTO THE NEW WEST IS SHAPING UP AS A LONGER AND BUMPIER ONE THAN THE CLINTON TEAM ONCE ENVISIONED IT ISN'T GENERALLY UNDERSTOOD HOW IMPORTANT THE WEST WAS TO BILL CLINTON'S PRESIDENTIAL CAMPAIGN LAST YEAR HE SWEPT THE PACIFIC COAST STATES WHERE HE OUTPOLLED GEORGE BUSH BY 12 PERCENTAGE POINTS HE WON FIVE WESTERN STATES CALIFORNIA COLORADO MONTANA NEVADA AND NEW MEXICO THAT NO DEMOCRAT HAD CARRIED IN 28 YEARS IT'S POSSIBLE TO READ TOO MUCH INTO THESE INROADS MR CLINTON UNDOUBTEDLY WON SOME OF THOSE FIVE STATES BECAUSE OF ROSS PEROT WHO POLLED ABOVE HIS NATIONAL AVERAGE IN FOUR OF THEM AND DIVERTED MANY VOTERS WHO OTHERWISE WOULD HAVE BACKED MR BUSH STILL THE 1992 ELECTION HINTED THAT SOMETHING IS AFOOT IN THE WEST MR BABBITT ARGUES THAT A WHOLESALE CHANGE IN THE REGION'S ECONOMY IS STARTING TO FUNDAMENTALLY CHANGE ITS POLITICS AS WELL UNTIL THE LAST TWO DECADES HE SAYS THE WEST HAD WHAT AMOUNTED TO A RESOURCE ECONOMY ONE BASED ON PRODUCING MINERALS TIMBER AND BEEF TO BE SHIPPED SOMEPLACE ELSE IT WAS A SORT OF A COLONIAL OUTPOST MR BABBITT SAYS NOW WESTERN ECONOMIES INCREASINGLY ARE BASED ON HIGHTECHNOLOGY COMPANIES SERVICE INDUSTRIES AND TOURISM THAT HAS PRODUCED A STRIKINGLY DIFFERENT PROFILE IN NEVADA MR BABBITT NOTES NEARLY 90 OF RESIDENTS LIVE IN URBAN AREAS MAKING THE STATE VASTLY MORE URBANIZED THAN NEW YORK OR VIRGINIA OR PENNSYLVANIA AND 85 OF ARIZONANS LIVE IN TWO METROPOLITAN AREAS THESE URBANIZED AREAS MR BABBITT SAYS ARE POPULATED BY PEOPLE WHO CAME WEST LOOKING FOR IN SOME MEASURE OUTDOOR VALUES CLEAN AIR PLACES TO TAKE THEIR KIDS HUNTING AND FISHING WIDE OPEN SPACES WHO NOW ARE REALLY INCREASINGLY VIGOROUS ABOUT LOBBYING FOR THE QUALITY OF THE LANDSCAPE AND MANAGEMENT OF THE ECOSYSTEM THAT POLITICAL BACKDROP EXPLAINS TWO OF THE CLINTON ADMINISTRATION'S RISKY EARLY INITIATIVES ITS PROPOSALS TO RAISE THE GRAZING FEES PAID BY RANCHERS USING FEDERAL LANDS AND TO CHARGE ROYALTIES TO MINING COMPANIES DIGGING ON FEDERAL LANDS THOSE PROPOSALS GENERATED PROTESTS FROM POLITICALLY WELLCONNECTED RANCHERS AND MINERS AS A RESULT WORRIED WESTERN DEMOCRATS IN CONGRESS PERSUADED THE ADMINISTRATION TO DROP THE PROPOSALS FROM ITS ORIGINAL BUDGET PACKAGE AND REPUBLICANS HAVE SLOWED SEPARATE LEGISLATION TO PUT THE CHANGES INTO EFFECT BUT THE CLINTON ADMINISTRATION IS GAMBLING THAT THOSE INITIATIVES ARE POPULAR WITH THE MAJORITY OF NEW WESTERNERS WHO ARE NEITHER RANCHERS NOR MINERS THOSE WESTERNERS THE ADMINISTRATION FIGURES AGREE WITH ENVIRONMENTALISTS THAT THE CURRENT SYSTEM ENCOURAGES DESTRUCTIVE OVERGRAZING AND PERMITS MINING COMPANIES TO PROFIT FROM FEDERAL LANDS WITHOUT ADEQUATELY PAYING FOR LATER ENVIRONMENTAL CLEANUP TEN YEARS AGO IT WOULD HAVE BEEN SUICIDAL TO DO THESE THINGS IN THE WEST MR BABBITT SAYS IT'S POSSIBLE NOW BECAUSE THE WEST HAS CHANGED IF YOU TOOK OPINION POLLS IN THE WEST LARGE MAJORITIES OF WESTERNERS NOW FAVOR THESE REFORMS OF COURSE IF IT WERE SO OBVIOUS THAT SUCH MEASURES WERE GOOD POLITICS WESTERN LAWMAKERS WOULD LINE UP TO SUPPORT THEM CLEARLY THE WEST HASN'T CHANGED THAT MUCH YET SO MR BABBITT'S TASK IS TO SHOW THAT DEMOCRATS HAVE FIGURED OUT HOW TO BALANCE ECONOMIC GROWTH WITH PROTECTION OF THE WEST'S NATURAL RESOURCES HE IS SEEKING CASES TO PROVE THE POINT AND THINKS THEY MAY COME IN THE NORTHWEST'S SPOTTEDOWL CONTROVERSY OR IN NEW INITIATIVES TO PROTECT THE SAN FRANCISCO BAY AND THE CALIFORNIA GNATCATCHER WE'VE GOT TO PERSUADE PEOPLE THAT WE ARE PROBLEMSOLVERS HE SAYS POLITICALLY THE NEW WEST MAY BE WON OR LOST ON HOW WELL BRUCE BABBITT DOES THAT 9312290052 931229 INTERNATIONAL BANESTO'S CHAIRMAN BOARD ARE OUSTED BY BANK OF SPAIN TO EASE FEAR OF A RUN BY NICHOLAS BRAY AND CARLTA VITZTHUM STAFF REPORTERS OF THE WALL STREET JOURNAL MADRID SPAIN'S CENTRAL BANK FIRED THE CHAIRMAN AND THE ENTIRE BOARD OF BANCO ESPANOL DE CREDITO SPAIN'S FOURTHLARGEST COMMERCIAL BANK IN AN ATTEMPT TO STAVE OFF A THREATENED RUN ON DEPOSITS THE BANK OF SPAIN SAID IT WAS TAKING ACTION UNDER PROVISIONS OF SPANISH BANKING LAW IN LIGHT OF JITTERS STEMMING FROM SEVERE FINANCIAL PRESSURES ON BANESTO AS THE BANK IS KNOWN THE CENTRAL BANK GAVE NO DETAILS OF THE SIZE OF A RUMORED DEFICIT FACING BANESTO FOR 1993 BUT SAID THAT THE DEMANDS ON BANESTO'S BALANCE SHEET NECESSITATED THE ASSISTANCE OF THE ENTIRE SPANISH BANKING SYSTEM THE CENTRAL BANK'S MOVE THOUGH TALKED ABOUT FOR MONTHS AS A POSSIBILITY WAS A BOMBSHELL IN MADRID'S FINANCIAL MARKETS THIS IS BAD NEWS NOT JUST FOR BANESTO BUT FOR THE ENTIRE SPANISH BANKING SECTOR SAID A SENIOR OFFICIAL AT ANOTHER SPANISH BANK WHO ASKED NOT TO BE IDENTIFIED THE BANESTO DEBACLE IS ALSO A SEVERE EMBARRASSMENT FOR JP MORGAN & CO THE US INVESTMENT BANK THAT EARLIER THIS YEAR LED A MASSIVE CAPITAL INCREASE FOR BANESTO JP MORGAN HAS BEEN ACTING AS AN ADVISER TO THE BANK EARNING LUCRATIVE FEES THE THIRD AND FINAL TRANCHE OF THE CAPITAL INCREASE WAS RECENTLY POSTPONED TRADING IN BANESTO SHARES WAS SUSPENDED YESTERDAY MORNING AT 1995 PESETAS A SHARE US1428 DOWN 140 PESETAS FROM THE PREVIOUS CLOSE OTHER BANK SHARES FELL DRAGGING MADRID'S IBEX35 INDEX OF THE 35 LARGEST STOCKS DOWN 5718 POINTS TO 357427 PARTLY ON SPECULATION THAT OTHER BANKS WILL BE ASKED TO INCREASE THEIR CONTRIBUTION TO THE DEPOSIT GUARANTEE FUND TO HELP COVER BANESTO'S LIABILITIES ANALYSTS SAY THE BANK HAS BEEN FORCED TO MAKE HEAVY PROVISIONS FOR BAD LOANS IN ADDITION ITS BALANCE SHEET HAS BEEN HIT BY A MARKDOWN IN THE VALUE OF ITS NONBANKING INDUSTRIAL AND FINANCIAL HOLDINGS AS A RESULT BANESTO IS EXPECTED TO REPORT A SIZABLE LOSS FOR 1993 CAUSING IT TO SUSPEND DIVIDEND PAYMENTS AND POSSIBLY ALSO INTEREST PAYMENTS ON SUBORDINATED DEBT OUTSTANDING THE LOSSES IN TURN ARE LIKELY TO OBLIGE THE BANK TO WRITE OFF POTENTIALLY AS MUCH AS HALF OF ITS CAPITAL AND RESERVES BEFORE EMBARKING ON A NEW CAPITAL INCREASE WHOSE MAIN SUBSCRIBERS WILL PROBABLY BE OTHER SPANISH BANKS THE BANK OF SPAIN APPOINTED A NEW EXECUTIVE TEAM TO RUN BANESTO LED BY ALFREDO SAENZ ABAD CURRENTLY FIRST VICE CHAIRMAN AT BANCO BILBAO VIZCAYA AS CHAIRMAN HE SUCCEEDS BANESTO CHAIRMAN MARIO CONDE A FLAMBOYANT 45YEAROLD LAWYERTURNEDBUSINESSMAN WHO AT ONE TIME APPEARED TO BE HEADING INTO POLITICS THE NEW BOARD WHICH WILL INCLUDE SENIOR OFFICIALS FROM OTHER MAJOR SPANISH BANKS WILL OPERATE UNDER THE DIRECT SUPERVISION OF THE CENTRAL BANK MR SAENZ ABAD IS EXPECTED TO RETAIN HIS POST AT BBV SPAIN'S LARGEST BANK PENDING A DECISION ON BANESTO'S FUTURE SPANISH BANKERS SPECULATED THAT BANESTO WITH MORE THAN 2300 BRANCHES AND NEARLY 16000 EMPLOYEES WILL EVENTUALLY BE TAKEN OVER BY ANOTHER SPANISH BANK MR SAENZ ABAD'S APPOINTMENT SPARKED SPECULATION THAT BBV MAY EVENTUALLY SEEK TO ACQUIRE BANESTO IN ORDER TO CONSOLIDATE ITS POSITION AS SPAIN'S MARKET LEADER ANOTHER POSSIBLE CONTENDER HOWEVER MAY BE BANCO SANTANDER A HIGHLY PROFITABLE BANK RUNNING NECK AND NECK WITH BANESTO IN TERMS OF ASSET SIZE OFFICIALS AT BOTH BANKS DECLINED TO COMMENT AS PART OF BANESTO'S RECENT CAPITAL INCREASE JP MORGAN LED AN INVESTMENT FUND KNOWN AS CORSAIR THAT PAID 162 MILLION FOR A 79 STAKE IN THE SPANISH BANK WHILE MOST OF CORSAIR'S APPROXIMATELY 50 SHAREHOLDERS ARE US INSTITUTIONAL INVESTORS JP MORGAN HAD AN APPROXIMATELY 10 STAKE IN THE FUND GIVING IT AN INDIRECT 079 IN BANESTO JP MORGAN'S VICE CHAIRMAN ROBERTO G MENDOZA WAS ONE OF THE BANESTO BOARD MEMBERS OUSTED YESTERDAY LAST WEEK IN ONE OF THE MANY RECENT TREMORS AFFECTING THE RELATIONSHIP BETWEEN MORGAN AND BANESTO A SENIOR JP MORGAN INVESTMENT BANKER WHO WAS ADVISING THE SPANISH BANK VIOLY DE HARPER QUIT TO JOIN A RIVAL NEW YORK FIRM JAMES D WOLFENSOHN INC WHAT HAPPENS NEXT IN THE RELATIONSHIP WILL DEPEND ON BANESTO'S NEW BOARD A SPOKESWOMAN FOR JP MORGAN IN NEW YORK SAID THE BANK IS MONITORING THE SITUATION FOR THE MOMENT WE HAVE NO COMMENT BANESTO'S TROUBLES SEEM LIKELY TO MEAN A SIGNIFICANT LOSS FOR CORSAIR THOUGH CORSAIR BOUGHT ITS STAKE IN BANESTO AT AN AVERAGE PRICE OF LESS THAN 1900 PESETAS OR SLIGHTLY BELOW THE PRICE AT WHICH BANESTO SHARES WERE SUSPENDED SECURITIES ANALYSTS SAID THEY EXPECT THE SHARES TO PLUMMET WHEN TRADING RESUMES EXTERNAL OBSERVERS SAID YESTERDAY'S MOVE BORE ALL THE HALLMARKS OF AN EMERGENCY ACTION TO STAVE OFF A RUN ON THE BANK SOME OTHER SPANISH BANKS WORRIED ABOUT BANESTO'S STABILITY WERE REPORTED TO HAVE BEGUN WITHHOLDING FUNDS ON INTERBANK MARKETS WHILE INDIVIDUALS WERE KNOWN TO BE BEGINNING TO WITHDRAW DEPOSITS IN RESPONSE TO THE BOARD OUSTER STANDARD & POOR'S CORP PUT ON CREDITWATCH WITH NEGATIVE IMPLICATIONS THE A2 SHORTTERM RATING OF THE BANK'S COMMERCIAL PAPER AND CERTIFICATES OF DEPOSIT 9312290051 931229 YOUR MONEY MATTERS FOR THOSE SEEKING MEDIGAP INSURANCE PITFALLS IN PICKING POLICY CAN BE COSTLY BY DEBORAH LOHSE STAFF REPORTER OF THE WALL STREET JOURNAL MANY OLDER AMERICANS WASTE HUNDREDS OF DOLLARS A YEAR BY PICKING THE WRONG MEDIGAP INSURANCE POLICIES ALTHOUGH MEDIGAP COVERAGE WHICH HELPS PAY MEDICAL COSTS FOR MILLIONS OF SENIORS IS A LOT MORE STRAIGHTFORWARD THAN IT USED TO BE FINANCIAL ADVISERS SAY A NUMBER OF COSTLY PITFALLS REMAIN FOR THE UNWARY TAKING TIME TO DECIDE EXACTLY WHAT BENEFITS AND SERVICES YOU ARE LIKELY TO NEED AND CAREFULLY COMPARING CURRENT AND PROJECTED PRICES AT VARIOUS COMPANIES CAN HELP SENIORS AVOID WASTING MONEY INFORMED CONSUMERS CAN SAVE A LOT SAYS JAMES FIRMAN PRESIDENT OF UNITED SENIORS HEALTH COOPERATIVE A NONPROFIT CONSUMER ORGANIZATION IN WASHINGTON MEDIGAP INSURANCE HELPS PAY FOR EXPENSES THAT AREN'T COVERED BY MEDICARE THE FEDERAL HEALTH PROGRAM FOR SENIORS FOR YEARS THE POLICIES COVERED A HODGEPODGE OF BENEFITS AND WERE SO CONFUSING THAT MANY PEOPLE BOUGHT SEVERAL POLICIES JUST TO FEEL SAFE CONGRESS TRIED TO FIX THE PROBLEM WITH A LAW WHICH TOOK EFFECT IN 1992 THAT RESTRICTS INSURERS IN MOST STATES TO SELLING 10 STANDARDIZED POLICIES THE POLICIES LABELED A THROUGH J PROVIDE VARYING LEVELS OF BENEFITS EACH OF THE 10 POLICIES PAYS THE PATIENT'S PORTION OF THE BASIC HOSPITAL AND DOCTOR COSTS COVERED BY MEDICARE INCLUDING DAILY CHARGES FOR LONG HOSPITAL STAYS AND 20 OF DOCTOR BILLS THEY ALL ALSO PAY FOR THE COST OF 365 DAYS OF HOSPITALIZATION OVER A POLICYHOLDER'S LIFETIME SOME POLICIES PROVIDE BENEFITS THAT MEDICARE DOESN'T OFFER THESE MAY INCLUDE PAYMENTS FOR HOSPITALVISIT DEDUCTIBLES OF NEARLY 700 50 OF PRESCRIPTION DRUG COSTS TO A 3000 ANNUAL MAXIMUM EMERGENCY COVERAGE FOR OUTOFCOUNTRY TRAVEL AND AS MUCH AS 1600 OF PERSONAL HOME CARE FOLLOWING AN ILLNESS OR SURGERY THE CADILLAC OF MEDIGAP THE J PLAN ALSO REIMBURSES POLICYHOLDERS FOR THEIR 100 DEDUCTIBLE FOR DOCTOR VISITS AND AS MUCH AS 120 OF NEEDED HEALTH SCREENINGS OR PREVENTIVE SERVICES BUT ALTHOUGH MEDIGAP POLICIES ARE NOW STANDARDIZED PREMIUMS CAN VARY WIDELY ADVISERS NOTE FOR EXAMPLE A HEALTHY 75YEAROLD IN OHIO COULD PAY 1500 FOR PLAN J FROM PRUDENTIALAARP OR 3247 FOR THE SAME PLAN FROM NATIONAL STATES INSURANCE CO ACCORDING TO THE COMPANIES' 1993 RATES FILED WITH THE STATE MOREOVER PEOPLE WHO MAKE A POOR CHOICE WHEN THEY BUY MEDIGAP COVERAGE MIGHT NOT BE ABLE TO GET A LESSEXPENSIVE OR MORECOMPREHENSIVE POLICY LATER IF THEY'VE DEVELOPED HEALTH PROBLEMS A NEW INSURER DOESN'T WANT TO COVER ADVISERS SAY THAT IS BECAUSE INSURERS CAN REJECT PRACTICALLY ANY APPLICANT THEY PREDICT WILL USE A LOT OF BENEFITS THE EXCEPTION IS ANYONE APPLYING WITHIN THE FIRST SIX MONTHS AFTER JOINING MEDICARE PART B WHICH COVERS PHYSICIAN AND OUTPATIENT COSTS NATIONAL HEALTHCARE OVERHAUL MIGHT MAKE SOME BENEFITS MORE AVAILABLE TO SENIORS THROUGH MEDICARE BUT MOST ADVISERS PREDICT THAT SENIORS WILL STILL NEED TO BUY MEDIGAP POLICIES TO FILL IN WHAT MEDICARE LEAVES OUT WHEN BUYING MEDIGAP COVERAGE IT IS IMPORTANT FOR SENIORS TO TAKE TIME TO CONSIDER WHICH BENEFITS THEY ARE LIKELY TO NEED YOU REALLY HAVE TO SIT DOWN AND ASSESS YOUR OWN HEALTH PROFILE SAYS CHARLES RATNER NATIONAL DIRECTOR OF PERSONAL INSURANCE COUNSELING FOR ERNST & YOUNG IN CLEVELAND SOMEONE WHO ALWAYS VISITS DOCTORS WHO CHARGE NO MORE THAN MEDICARESET FEES MIGHT FIND THAT PAYING EXTRA FOR PLANS F OR G WHICH REIMBURSE POLICYHOLDERS FOR DOCTOR CHARGES ABOVE MEDICARE'S LIMITS COULD BE WASTEFUL FOR THEM A CHEAPER C OR D POLICY MIGHT PROVIDE ALL THEY REALLY NEED SIMILARLY SOMEONE BUYING PLAN C F OR J BECAUSE THEY COVER THE FIRST 100 OF DOCTOR COSTS PER YEAR MAY BE PAYING MORE THAN 100 IN PREMIUMS TO GET THAT BENEFIT SAYS MR FIRMAN BUYERS HAVE TO ASK THEMSELVES WHAT ARE THE PREMIUMS FOR EACH LAYER OF COVERAGE THEY ARE ADDING ADDS MR RATNER HOW PRICES ARE SET CAN BE VERY IMPORTANT PREMIUMS THAT ARE PRICED BASED ON A PERSON'S ATTAINED AGE FOR INSTANCE USUALLY RISE EVERY YEAR SO THAT WHILE THEY MIGHT LOOK CHEAP FOR A 65YEAROLD NOW YEARS LATER THE POLICY MAY BE UNAFFORDABLE A MOREEXPENSIVE POLICY WITH PREMIUMS THAT REMAIN RELATIVELY STABLE OVER THE LONG RUN COULD BE THE BETTER DEAL WHEN COMPARING PRICES DON'T JUST LOOK AT THE COST OF THE POLICY FOR YOUR CURRENT AGE BUT ALSO THE COST FOR FUTURE AGES MR FIRMAN SAYS TO FIND OUT THE INSURANCE COMPANY'S ESTIMATE OF WHAT PREMIUMS WILL COST DOWN THE ROAD MICHAEL SHUCHTER TECHNICAL ANALYST FOR THE HEALTH INSURANCE COUNSELING AND ADVOCACY PROGRAM IN SACRAMENTO CALIF ADVISES PEOPLE TO LOOK AT THE OUTLINE OF COVERAGE OR THE PREMIUM SCHEDULE FROM THE INSURANCE COMPANY BUYING MEDIGAP COVERAGE FROM AN INSURER THAT OFFERS ELECTRONIC BILLING CAN ALSO SAVE MONEY ADVISERS SAY MANY INSURERS WITH COMPETITIVE POLICIES ALSO OFFER AUTOMATIC CLAIMS HANDLING CALLED CROSSOVER BILLING WHICH MEANS MEDICARE AUTOMATICALLY SENDS BILLS TO THE MEDIGAP CARRIER THIS ASSURES THAT SENIORS DON'T PAY BILLS AND LATER FORGET TO FILE FOR REIMBURSEMENT MANY CONSUMERS LOSE HUNDREDS OF DOLLARS EACH YEAR BECAUSE THEY GET LOST IN THE PAPERWORK MR FIRMAN SAYS IT IS USUALLY POSSIBLE TO SAVE ON PREMIUMS BY TAKING ADVANTAGE OF LOW GROUP RATES OFFERED BY SOCIAL OR PROFESSIONAL ORGANIZATIONS CATERING TO SENIORS GROUP POLICIES CAN BE CONSIDERABLY LESS EXPENSIVE THAN INSURANCE YOU MIGHT GET BY JUST CALLING YOUR LOCAL INSURANCE AGENT SAYS MR SHUCHTER ONE GROUP THE AMERICAN ASSOCIATION OF RETIRED PERSONS OFFERS POLICIES IN MOST STATES THAT ARE OFTEN PARTICULAR BARGAINS FOR OLDER PEOPLE SOME ADVISERS SAY SENIORS NAVIGATING THE MEDIGAP MARKET SHOULDN'T FEEL ALONE FREQUENTLY THEY CAN GET FREE COUNSELING PAMPHLETS OR ACTUAL RATE COMPARISONS FOR THEIR AREA BY CONTACTING A SENIOR HEALTHINSURANCE COUNSELING PROGRAM AVAILABLE IN ALMOST EVERY STATE SENIORS SHOULD CALL THEIR LOCAL AGENCY ON AGING OR THEIR STATE INSURANCE DEPARTMENT TO FIND THE NEAREST SENIOR HEALTH INSURANCE COUNSELING SERVICE SOURCES UNITED SENIORS HEALTH COOPERATIVE PRUDENTIAL AARP OPERATIONS SOME CHOICES MAY BE UNAVAILABLE IN MASS MINN WIS NY VT DEL AND PA 9312290049 931229 WHAT'S NEWS BUSINESS AND FINANCE BLOCKBUSTER AND NYNEX ARE SEEKING TOUGH NEW TERMS FROM VIACOM IN RETURN FOR INVESTING MORE CASH TO ENABLE VIACOM TO SWEETEN ITS BID FOR PARAMOUNT WALL STREET TRADERS SAY VIACOM NEEDS AT LEAST 600 MILLION MORE TO TOP QVC'S 97 BILLION OFFER BUT BOTH FIRMS ARE DISSATISFIED WITH THEIR ORIGINAL AGREEMENT WHICH GAVE THEM NO VOTING CONTROL AND LITTLE MANAGERIAL SAY AND THEY NOW WANT BETTER ECONOMIC TERMS AND MORE CLOUT NYNEX AND OTHER TELECOMMUNICATIONS COMPANIES ON A NEW YORK STATE PANEL RECOMMENDED THAT THE STATE DEREGULATE LOCAL TELEPHONE SERVICE TO BOOST COMPETITION AND ASSIST THE MERGING OF PHONE CABLE AND INFORMATION SERVICES MANY OF THE PANEL'S PROPOSALS COULD BE ADOPTED NEXT YEAR CONSUMER CONFIDENCE POSTED A HEALTHY INCREASE OF MORE THAN EIGHT POINTS IN DECEMBER AT 802 THE INDEX IS AT ITS HIGHEST SINCE SEPTEMBER 1990 CONSUMERS GREW SLIGHTLY MORE POSITIVE ABOUT THE CURRENT STATE OF THE ECONOMY AND MARKEDLY MORE OPTIMISTIC ABOUT THE NEXT SIX MONTHS US MANUFACTURING SHIPMENTS WILL INCREASE BY THE BIGGEST AMOUNT SINCE 1988 THE COMMERCE DEPARTMENT'S INDUSTRIAL OUTLOOK FOR 1994 PREDICTS THE RISE WILL BE HELPED BY INCREASED INVESTMENT IN CAPITAL EQUIPMENT AND CONSUMER PURCHASES OF DURABLE GOODS AT&T FILED FOR AN INCREASE IN RESIDENTIAL LONGDISTANCE RATES FOR THE SECOND TIME IN FIVE MONTHS BUT IT SAID A NEW DISCOUNT PLAN WILL OFFSET PROJECTED REVENUE GAINS OF 750 MILLION THE COMPANY ALSO FILED FOR A 375 RISE IN RATES FOR INTERNATIONAL CALLS SPAIN'S CENTRAL BANK FIRED THE CHAIRMAN AND THE BOARD OF BANCO ESPANOL DE CREDITO SPAIN'S FOURTHLARGEST COMMERCIAL BANK IN AN ATTEMPT TO THWART A RUN ON DEPOSITS AMERICAN HOME'S ANTIDEPRESSANT DRUG WON FDA APPROVAL CLEARING THE WAY FOR IT TO CHALLENGE LEADER ELI LILLY'S PROZAC IN THE 8 BILLION MARKET THE DRUG EFFEXOR EMERGES AS PRESCRIPTIONS FOR RIVAL ANTIDEPRESSANTS ARE INCREASING BY ABOUT 45 A YEAR INTEL'S COPYRIGHT INFRINGEMENT SUIT AGAINST ADVANCED MICRO WAS ACCELERATED BY A COURT ORDER THE CHIP MAKER IS SEEKING AS MUCH AS 600 MILLION NEW YORK LIFE AND POSSIBLY PRUDENTIAL INSURANCE ARE INCLUDED IN A BROADENED INVESTIGATION OF LIFEINSURANCE SALES TACTICS BY FLORIDA OFFICIALS THE INQUIRY HAS CENTERED ON MET LIFE AND INVOLVED CLAIMS THAT AGENTS MISLED CLIENTS INTO BUYING LIFE INSURANCE DETROIT EDISON SAID A FIRE AT ITS FERMI 2 NUCLEAR PLANT WILL FORCE THE PLANT TO SHUT DOWN FOR SEVERAL MONTHS AND COULD HURT EARNINGS NEXT YEAR IT IS NOW UNLIKELY THE UTILITY WILL MEET POWER CAPACITY GOALS THAT WOULD HAVE ENTITLED IT TO CHARGE HIGHER RATES US INVESTORS HOLDING FOREIGN LONGTERM SECURITIES WILL BE REQUIRED TO REPORT ON THEIR PORTFOLIO INVESTMENTS FOR A TREASURY DEPARTMENT SURVEY STOCKS VOLUME 200957400 SHARES DOW JONES INDUSTRIALS 379377 UP 084 TRANSPORTATION 177561 UP 514 UTILITIES 23148 UP 106 BONDS LEHMAN BROTHERS TREASURY INDEX 558276 UP 446 COMMODITIES OIL 1411 A BARREL OFF 2 CENTS DOW JONES FUTURES INDEX 14179 OFF 048 SPOT INDEX 12746 OFF 005 DOLLAR 11136 YEN OFF 009 16990 MARKS OFF 00023 9312290046 931229 BUSINESS BRIEF TIFFANY & CO STOCK PRICE DECLINES BY 12 AFTER REPORTS BY ANALYSTS TIFFANY & CO COMMON SHARES FELL 12 AFTER ANALYSTS AT MERRILL LYNCH & CO AND GOLDMAN SACHS & CO DOWNGRADED THE STOCK THE ANALYSTS' REPORTS FOLLOWED A NEWS RELEASE BY TIFFANY LATE MONDAY IN WHICH THE COMPANY SAID SALES FROM NOV 1 TO DEC 25 INCREASED 31 FROM THE YEAREARLIER PERIOD THE COMPANY SAID US RETAIL SALES ROSE 16 AND DIRECT MARKETING SALES DECLINED 7 INTERNATIONAL RETAIL SALES DOUBLED WITH THE INCREASE PRIMARILY REFLECTING THE COMPANY'S BUSINESS REALIGNMENT IN JAPAN IN MID1993 THE COMPANY NOW RECORDS RETAIL SALES TO CONSUMERS INSTEAD OF WHOLESALE SALES TO MITSUKOSHI DEPARTMENT STORES 9312290043 931229 WHO'S NEWS DIED HENRY HARNISCHFEGER 70 RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF HARNISCHFEGER CORP AND A GRANDSON OF THE COMPANY'S FOUNDER SUNDAY IN MILWAUKEE AFTER A LONG ILLNESS 9312290040 931229 INTERNATIONAL BRIEF KAWASAKI HEAVY INDUSTRIES LTD COMPANY PARTNER TO TOP APPROVED BID FOR SHIPYARD JAPAN'S KAWASAKI HEAVY INDUSTRIES LTD AND PHILIPPINE CONCERN MAGSAYSAY SHIPPING CORP SAID THEY EXERCISED THEIR RIGHT TO TOP THE APPROVED BID PRICE OF 203 BILLION PESOS 7519 MILLION BY 5 TO 213 BILLION PESOS TO ACQUIRE THE PHILIPPINE SHIPYARD AND ENGINEERING CORP THIS AUTOMATICALLY DISQUALIFIES THE 203BILLIONPESO BID PRICE SUBMITTED BY A CONSORTIUM LED BY JG SUMMIT HOLDINGS CORP IN A BIDDING CONDUCTED BY THE GOVERNMENT'S ASSET PRIVATIZATION TRUST ON DEC 2 JG SUMMIT IS THE HOLDING COMPANY OF BUSINESS TYCOON JOHN GOKONGWEI JR THE ACQUISITION OF PHILSECO THE COUNTRY'S LARGEST SHIPYARD WILL BE MADE THROUGH PHILYARDS HOLDINGS INC A 6040 VENTURE BETWEEN MAGSAYSAY AND KAWASAKI FOLLOWING THE TRANSFER OF OWNERSHIP OF PHILSECO THE CONCERNED PARTIES SAID THEY WILL BE FORMING A BROADBASED CONSORTIUM INCLUDING MAJOR INTERNATIONAL SHIPYARDS 9312290039 931229 THE FED CAN'T CONTROL INTEREST RATES BY MARTIN MAYER SPEAKING FROM EUROPE THE ECONOMISTS OF THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT HAVE SUGGESTED THAT THE FEDERAL RESERVE SHOULD START RAISING INTEREST RATES IN THE US SPEAKING FROM THEIR SANCTUARIES IN CONGRESS AND THE WHITE HOUSE POLITICAL LEADERS HAVE WARNED THE FED NOT TO RAISE INTEREST RATES HIGHER RATES MAKING IT MORE EXPENSIVE FOR PEOPLE TO BUY HOMES AND CARS AND FOR BUSINESSES TO FINANCE THEIR INVENTORIES MIGHT TRAMPLE THE EMERGING FLOWERS OF ECONOMIC REVIVAL BUT IF THAT REVIVAL SHOULD SPARK AN INCREASE IN BANK LENDING TO BUSINESS INTEREST RATES WILL INDEED RISE WHETHER OR NOT THE FED WANTS THEM TO RISE THE FED WILL NOT HAVE THE POWER TO DETERMINE WHETHER RATES WILL RISE OR EVEN WHEN THEY WILL RISE IF THE BANKS RESUME LENDING THE ONLY DECISION THAT WILL BE AVAILABLE TO THE OPEN MARKET COMMITTEE WILL BE A DECISION AS TO WHICH RATES SHOULD RISE WHAT HOBBLES THE FED IS THE CONSEQUENCE OF ITS OWN GENEROSITY IN BAILING THE BIG BANKS OUT OF THEIR BIG TROUBLES FROM LATE 1990 UNTIL WELL INTO THIS YEAR THE FED WORKED TO MAKE INTEREST RATES VERY LOW FOR SHORTTERM BORROWINGS AND RATHER HIGH FOR LONGERTERM BORROWINGS THE PURPOSE OF THE PATTERN WAS TO GENERATE PROFITS FOR THE BANKS WHICH TYPICALLY BORROW MOST OF THE FUNDS THEY NEED THROUGH VERY SHORTTERM INSTRUMENTS AND LEND OR INVEST ON SOMEWHAT LONGER TERMS WHAT THE POLICY MEANT IN PRACTICE WAS THAT BANKS COULD MAKE MONEY ABSOLUTELY SAFELY BY INVESTING IN TREASURY AND GOVERNMENTGUARANTEED PAPER AND DIDN'T HAVE TO MAKE LOANS AT ALL BY 1992 FOR THE FIRST TIME SINCE THE YEARS RIGHT AFTER WORLD WAR II THE BANKING SYSTEM'S PORTFOLIO OF TREASURY PAPER WAS LARGER THAN ITS PORTFOLIO OF COMMERCIAL AND INDUSTRIAL LOANS THE NEAT THING ABOUT TREASURY PAPER IS THAT YOU CAN ALWAYS SELL IT REGULATORS DON'T MAKE BANKS ALLOCATE CAPITAL AGAINST THEIR HOLDINGS OF GOVERNMENT SECURITIES BECAUSE THESE SECURITIES ARE IN EFFECT THE LIQUIDITY RESERVE OF THE SYSTEM IF A BANK HAS TREASURY PAPER AND WANTS TO FUND A LOAN IT DOESN'T HAVE TO TAKE THE TIME AND TROUBLE TO LURE MONEY FROM DEPOSITORS IT CAN AND WILL SELL ITS EXCESS TREASURY PAPER TODAY HOWEVER THERE'S SO MUCH OF THE STUFF AROUND THAT ONE MUST ASK THE CLASSIC WALL STREET QUESTION TO WHOM DO YOU SELL THE BIGGEST AND BEST CUSTOMER FOR GOVERNMENT BILLS AND NOTES HAS BEEN THE BANKING SYSTEM ITSELF NOW PRESUMABLY OUT THERE AS A SELLER RATHER THAN AS A BUYER IN THE MARKET FOR GOVERNMENT PAPER AS IN ANY OTHER MARKET PRICES GO DOWN WHEN THERE ARE MORE SELLERS THAN BUYERS A DECLINING PRICE FOR GOVERNMENT BILLS AND NOTES MEANS A RISING INTEREST RATE ON GOVERNMENT PAPER AND INTEREST RATES FOR PRIVATE BORROWERS ARE INEVITABLY AT LEAST A LITTLE HIGHER THAN THEY ARE FOR THE GOVERNMENT THE ONLY WAY FOR THE FED TO KEEP INTEREST RATES DOWN ON THE SHORTTOMEDIUM PAPER THE BANKS WOULD SELL TO FINANCE LENDING IS TO BUY THE PAPER FOR ITS OWN ACCOUNT BUT THIS SORT OF OPEN MARKET ACTIVITY CREATES NEW BANK RESERVES MILTON FRIEDMAN'S HIGHPOWERED MONEY WHICH GUNS THE MONEY SUPPLY WHEN THE BANKS ARE MAKING LOANS INFLATION IS A MONETARY PHENOMENON AND DESPITE ALL THE GOOD NEWS ABOUT OIL AND ALUMINUM PRICES AND LABOR DOCILITY LARGE INCREASES IN THE AMOUNT OF MONEY OUTSTANDING WILL SOONER OR LATER DO NASTY THINGS TO THE PRICE INDEXES BOTH WHOLESALE AND RETAIL RAPIDLY RISING MONEYSUPPLY FIGURES THEREFORE SPOOK THE BOND MARKET AND PUSH UP LONGTERM INTEREST RATES REACHING FOR BETTER YIELD THAN THEY CAN GET FROM BANK CERTIFICATES OF DEPOSIT AND MONEYMARKET FUNDS PEOPLE HAVE POURED HUNDREDS OF BILLIONS OF DOLLARS INTO BOND FUNDS RISING RATES HOWEVER MEAN DECLINING BOND PRICES IN THE PAST THREE MONTHS AS THE ECONOMY HAS BEGUN TO IMPROVE RATES HAVE EDGED UP AND THE TOTAL RETURN FROM BOND FUNDS HAS DECLINED TO SOMETHING LIKE ZERO THE EVOLUTION OF THE MUTUAL FUND INDUSTRY HAS MADE IT A CINCH FOR CUSTOMERS TO SWITCH OUT OF BOND FUNDS FOR THE PRICE OF A TELEPHONE CALL WHEN THE CUSTOMER WANTS OUT THE BOND FUND MUST SELL BONDS INDEED IF THERE IS REASON TO BELIEVE THE CUSTOMER MAY BE ABOUT TO RUN THE MANAGER OF A BOND FUND WILL SHIFT SOME FRACTION OF ITS ASSETS TO CASH EQUIVALENTS TO MAKE SURE THE TIDAL WAVE DOESN'T ENGULF HIM WHAT THE TRADE CALLS DYNAMIC HEDGING PORTFOLIO INSURANCE HAVING ACQUIRED A BAD NAME IN THE 1987 CRASH WILL THEN EXACERBATE A DOWNTREND SHOULD BOND PRICES REALLY TANK SHOULD THE YIELD RISE OVER SAY 7 INVESTORS IN BOND FUNDS COULD FLEE IN THE WORST CASE SCENARIO CASCADING BOND PRICES COULD DRAG DOWN STOCK PRICES CREATING A PANIC MORE DANGEROUS THAN THAT OF 1987 WHEN BONDS ROSE AS STOCKS FELL THUS THE FED KEEPS JAWBONING ABOUT THE NEED TO FIGHT INFLATION IN A TIME WHEN THERE'S VIRTUALLY NO INFLATION IF PEOPLE BELIEVE THE CENTRAL BANK IS VIGILANT THEY'RE MORE LIKELY TO HOLD THEIR BONDS AND IF THE BANKS BECOME MORE CONFIDENT LENDERS THE FED DESPITE ITS CURRENT POLITICAL TROUBLES WILL PROBABLY LET SHORTER TERM RATES RISE AS EVIDENCE TO THE NATION'S BONDHOLDERS THAT IT'S SERIOUS ABOUT KEEPING THE MONEY SUPPLY IN CHECK BUT IN TODAY'S CIRCUMSTANCES THE FED CAN'T SIMPLY HOLD DOWN RATES THE DECISION THAT THE GOVERNMENT SHOULD MAKE WHAT IS STILL A SICK BANKING SYSTEM LOOK HEALTHY MAY OR MAY NOT HAVE BEEN WISE BUT IN EITHER CASE IT WASN'T A FREE LUNCH PART OF THE PRICE TO BE PAID WHETHER THE PRESIDENT CONGRESS AND THE FED'S OWN BOARD OF GOVERNORS LIKE IT OR NOT IS A REDUCTION IN THE CENTRAL BANK'S POWER TO CONTROL THE PRICE OF MONEY SECULAR TRENDS IN BANKING MAY YET RESCUE THE FED FROM ITS DILEMMA THE STEADY REDUCTION OF THE BANKS' DEPENDENCE ON COMMERCIAL AND INDUSTRIAL LENDING AS A SOURCE OF INCOME MAY MEAN THAT BANKING HAS BECOME DISCONNECTED FROM THE REAL ECONOMY BUT THE FIRST SIGN THAT THIS RECOVERY LIKE ALL ITS PREDECESSORS HAS RESTORED THE ANIMAL HIGH SPIRITS OF BANKERS WILL PUT THE FED IN A BOX WITH NO EXIT EXCEPT A DIM HOPE THAT CONGRESS AND THE PRESIDENT UNDERSTAND THE DILEMMA MR MAYER A GUEST SCHOLAR AT THE BROOKINGS INSTITUTION IS AT WORK ON THE 20TH ANNIVERSARY REVISION OF HIS BOOK THE BANKERS VIKING PENGUIN 9312290037 931229 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 9312290035 931229 BUSINESS BRIEF DAIMLERBENZ AG MERCEDES PLANS TO EXPAND TRUCK PRODUCTION ABROAD MERCEDESBENZ AG WHICH BUILT HALF ITS TRUCKS THIS YEAR AT PLANTS OUTSIDE GERMANY PLANS TO FURTHER EXTEND ITS FOREIGNBASED PRODUCTION OF COMMERCIAL VEHICLES IN AN INTERVIEW WITH THE FRANKFURTER ALLGEMEINE ZEITUNG BERND GOTTSCHALK THE MERCEDES MANAGEMENT BOARD MEMBER WHO OVERSEES THE COMMERCIALTRUCK DIVISION CATALOGED A LIST OF TRUCK ASSEMBLY PROJECTS IN ARGENTINA CHINA AND INDONESIA A COMPANY SPOKESMAN CONFIRMED THE CONTENTS OF THE ARTICLE THE STRATEGY REPRESENTS ANOTHER STEP IN THE LUXURYCAR AND TRUCK MAKER'S PUSH INTO NEW MARKETS AND ITS CREEPING ESCAPE FROM HIGH GERMAN LABOR AND PRODUCTION COSTS EARLIER THIS YEAR MERCEDES A UNIT OF DAIMLERBENZ AG ANNOUNCED IT WOULD BUILD A FACTORY IN ALABAMA ITS FIRST PASSENGERCAR PLANT OUTSIDE GERMANY 9312290028 931229 CREDIT MARKETS LONG BOND'S PRICE EASES BUT SHORTERTERM ISSUES RALLY SLIGHTLY AS TRADING ACTIVITY REMAINS THIN BY LESLIE SCISM AND JOHN P HUGHES STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND EDGED DOWNWARD AGAIN YESTERDAY BUT SHORTERTERM ISSUES RALLIED SLIGHTLY IN THIN HOLIDAYSEASON TRADING IT'S A QUIET DAY REALLY THERE'S NOT A LOT GOING ON MICHAEL NIEMIRA AN ECONOMIST WITH MITSUBISHI BANK SAID THE MARKET'S NOT GOING TO DO A LOT FOR THE REST OF THE YEAR WITH MANY MONEY MANAGERS AND PROFESSIONAL TRADERS ON VACATION THOSE STILL AT WORK LARGELY IGNORED TWO MIXED ECONOMIC REPORTS A RELATIVELY STRONG REPORT FROM THE CONFERENCE BOARD AND WEAKERTHANEXPECTED RETAIL SALES FIGURES THE BENCHMARK 30YEAR TREASURY CLOSED DOWN 1/16 POINT AT 100 4/32 A LOSS OF 625 CENTS FOR EACH 1000 FACE AMOUNT ITS YIELD WAS 623 UNCHANGED FROM MONDAY BUT OTHER TREASURY ISSUES EDGED UP SLIGHTLY IN PRICE WITH YIELDS WHICH MOVE IN THE OPPOSITE DIRECTION FALLING SLIGHTLY MANY MONEY MANAGERS AND PROFESSIONAL TRADERS HAVE WRAPPED UP THEIR 1993 BOOKS ON THE BELIEF THAT THE NEXT SIGNIFICANT MOVEMENT IN TREASURY PRICES WILL DEPEND ON ECONOMIC DATA FOR THE FIRST QUARTER OF 1994 ESPECIALLY IMPORTANT WILL BE REPORTS DETERMINING WHETHER THE STRONGERTHANEXPECTED FOURTHQUARTER ECONOMIC PERFORMANCE TRANSLATES INTO INCREASED INFLATION AND BEFORE TOO LONG INVESTORS MAY HAVE TO GET USED TO A NEW WAY OF MEASURING THAT INFLATION THE LABOR DEPARTMENT'S BUREAU OF LABOR STATISTICS CONFIRMED YESTERDAY THAT IT IS STUDYING POSSIBLE CHANGES TO ITS CONSUMER PRICE INDEX BECAUSE THE REPORT HAS A TENDENCY TO OVERSTATE INFLATION AFTER LONG TALKING ABOUT REVAMPING THE INDEX THE BUREAU ANTICIPATES USING ALTERNATIVE CALCULATION METHODS IN EXPERIMENTAL VERSIONS OF THE INDEX STARTING IN 1995 A BUREAU SPOKESMAN SAID BUT ANY PERMANENT CHANGE IN THE INDEX WOULDN'T BE IMPLEMENTED FOR AT LEAST FIVE YEARS THE SPOKESMAN SAID WITH SO FEW PLAYERS IN THE MARKET YESTERDAY ICF KAISER INTERNATIONAL INC AN ENVIRONMENTALCONSULTING FIRM POSTPONED A PLANNED 125 MILLION JUNKBOND ISSUE UNTIL AFTER JAN 1 THE PLANNED OFFERING IS A MIX OF SENIOR SUBORDINATED NOTES AND WARRANTS FOR 25 OF THE COMPANY'S EQUITY TRADING VOLUME ON GOVPX A TREASURY PRICING SERVICE WAS ABOUT 314 BILLION LATE YESTERDAY TOPPING MONDAY'S 23 BILLION BUT STILL SIGNIFICANTLY BELOW THE DAILY AVERAGE OF MORE THAN 62 BILLION GOVPX SAYS ITS FIGURES CAPTURE MORE THAN 60 OF THE DAILY VOLUME OF THE TREASURY MARKET WILLIAM SULLIVAN SENIOR VICE PRESIDENT AND DIRECTOR OF MONEYMARKET RESEARCH FOR DEAN WITTER DISCOVER & CO SAID INTERMEDIATE TREASURYS GOT A LIFT AFTER THE LATEST RETAIL SALES FIGURES WERE RELEASED BY JOHNSON REDBOOK SERVICE A DIVISION OF LYNCH JONES & RYAN INC THE FIGURES SHOWED SALES AT THE NATION'S RETAILERS IN DECEMBER WERE DOWN A SEASONALLY ADJUSTED 08 FROM NOVEMBER ALTHOUGH THEY WERE UP 81 FROM A YEAR EARLIER EARLIER YESTERDAY TREASURYS WEAKENED WHEN THE CONFERENCE BOARD REPORTED THAT ITS CONSUMER CONFIDENCE INDEX JUMPED TO 802 IN DECEMBER FROM A REVISED 719 IN NOVEMBER BUT TRADERS NOTED THAT THE BULK OF THE GAIN IN THE INDEX WAS IN CONSUMER EXPECTATIONS A COMPONENT THAT'S EXTREMELY VOLATILE BECAUSE TRADING WAS SO LIGHT MR SULLIVAN SAID YESTERDAY'S PRICE TRENDS REPRESENT NEITHER FUNDAMENTAL STRENGTH NOR WEAKNESS TODAY WILL SEE THE RELEASE OF NOVEMBER'S DATA ON EXISTINGHOME SALES AND LEADING ECONOMIC INDICATORS TOMORROW REPORTS ARE DUE OUT ON INITIAL JOBLESS CLAIMS AND NEWHOME SALES THE POSSIBLE REVAMPING OF THE CONSUMER PRICE INDEX WAS FIRST HIGHLIGHTED IN A RECENT EDITION OF THE LABOR DEPARTMENT'S MONTHLY LABOR REVIEW KEN DALTON ASSISTANT LABOR DEPARTMENT COMMISSIONER SAID RESEARCHERS ARE CONSIDERING MOREFREQUENT CHANGES IN THE WEIGHTINGS OF INDEX COMPONENTS TO BETTER CAPTURE CHANGES IN CONSUMER BEHAVIOR THAT RESULT FROM CHANGING PRICES THE WEIGHTING SYSTEM CURRENTLY IS UPDATED ONCE EVERY 10 YEARS AND MAY NOT ACCURATELY ACCOUNT FOR SUBSTITUTIONS PEOPLE MAKE WHEN ONE COMPONENT OF THE SOCALLED BASKET OF GOODS BECOMES MORE OR LESS EXPENSIVE MR DALTON SAID MR DALTON SAID RESEARCH INDICATES THAT UPDATING THE WEIGHTING SYSTEM MORE FREQUENTLY TRIMS ABOUT 02 PERCENTAGE POINT FROM EACH YEAR'S INDEX INCREASE RESEARCH ALSO INDICATES THAT THE CURRENT MATHEMATICAL FORMULA USED TO CALCULATE THE CONSUMER PRICE INDEX MAY BE FLAWED RESEARCHERS BELIEVE THE FORMULA PROVIDES AN UPWARD BIAS FOR GOODS WHOSE PRICES FLUCTUATE SUBSTANTIALLY SUCH AS FRESH FRUITS AND VEGETABLES GASOLINE AND APPAREL USING ANOTHER METHOD WOULD LOWER THE REPORTED RISE IN THE INDEX BY 03 TO 04 PERCENTAGE POINT ANNUALLY ALSO YESTERDAY THE TREASURY DEPARTMENT ANNOUNCED IT IS CONDUCTING A SURVEY TO DETERMINE THE SIZE AGGREGATE MARKET VALUE AND CHARACTER OF FOREIGN LONGTERM SECURITIES OWNED BY US INDIVIDUALS AND INSTITUTIONS THE TREASURY SAID THE SURVEY REPRESENTS THE FIRST COMPREHENSIVE ATTEMPT TO EVALUATE US LONGTERM PORTFOLIO INVESTMENT ABROAD SINCE 1943 THE DATA COLLECTED WILL BE USED TO IMPROVE THE MEASUREMENT OF OFFICIAL BALANCE OF PAYMENTS AND NATIONAL INCOME ACCOUNTS AND THE INTERNATIONAL INVESTMENT POSITION OF THE US THE TREASURY SAID DEBT SECURITIES TO BE SURVEYED INCLUDE THOSE ISSUED BY INTERNATIONAL ORGANIZATIONS SUCH AS THE WORLD BANK AND INTERAMERICAN DEVELOPMENT BANK DETAILS OF THE SURVEY WERE ANNOUNCED BY THE TREASURY IN THE YESTERDAY'S FEDERAL REGISTER THE TREASURY SAID THE NOTICE CONSTITUTES LEGAL NOTIFICATION OF ALL US INDIVIDUALS AND INSTITUTIONS MEETING THE REPORTING REQUIREMENTS SPELLED OUT IN THE FILING IN TREASURY BILL TRADING YESTERDAY RATES FINISHED MIXED THE TREASURY ANNOUNCED YESTERDAY AFTERNOON THAT IT WOULD AUCTION 252 BILLION OF NEW THREEMONTH AND SIXMONTH BILLS AT ITS WEEKLY SALE NEXT MONDAY DOWN FROM 26 BILLION THIS WEEK TAXABLE MUNICIPAL BONDS BACKED BY THE GUARANTEED INVESTMENT CONTRACTS OF THE FAILED EXECUTIVE LIFE INSURANCE CO TRADED UP ABOUT 2 POINTS OR ABOUT 20 FOR A BOND WITH A 1000 FACE VALUE THE CHANGE WAS IN REACTION TO AN ANNOUNCEMENT THAT PARTIES TO THE LITIGATION FOR THE CALIFORNIA INSURER'S RESTRUCTURING ARE NEAR AGREEMENT ON A FRAMEWORK FOR THE RESOLUTION OF REMAINING LEGAL DISPUTES THE BONDS TRADED UP BECAUSE UNDER THE EXPECTED SETTLEMENT BONDHOLDERS WOULD RECEIVE INTEREST THAT HAS BEEN WITHHELD SINCE THE INSURER WAS SEIZED BY REGULATORS AND HOLDERS WOULD RECEIVE PAYMENT OF MOST LEGAL FEES INVESTMENTGRADE AND JUNKBOND PRICES WERE UNCHANGED AND SPREADS TO TREASURYS WERE ALSO UNCHANGED IN EXTREMELY LIGHT TRADING THE MUNICIPALBOND MARKET'S TONE REMAINED STRONG AHEAD OF THE NEW YEAR'S HOLIDAY EVEN THOUGH ACTIVITY WAS LIMITED PRICES WERE GENERALLY UNCHANGED TO SLIGHTLY STRONGER IN SECONDARY TRADING VALDEZ ALASKA'S 565 BONDS OF 2028 CLOSED UNCHANGED AT 100 1/8 TO YIELD 563 THE FLORIDA BOARD OF EDUCATION'S 520 BONDS OF 2023 CLOSED 1/8 HIGHER AT 97 5/8 TO YIELD 535 ALTHOUGH BUYING HASN'T BEEN VERY HEAVY THIS WEEK THERE IS STILL SOLID UNDERLYING DEMAND FOR MUNIS DUE TO THE BELIEF THAT A SUPPLY SHORTAGE WILL OCCUR NEXT MONTH BECAUSE OF BOND CALLS REDEMPTIONS AND LIGHT ISSUANCE TRADERS SAY IN THE PRIMARY MARKET ISSUANCE HAS BEEN VERY LIGHT SO FAR THIS WEEK AND IS EXPECTED TO REMAIN SCANT AS THE NEW YEAR BEGINS AMONG THE FEW COMPETITIVE ISSUES TOTALING MORE THAN 100 MILLION THAT WILL BE SOLD NEXT WEEK ARE THE SUFFOLK COUNTY NEW YORK WATER AUTHORITY'S 102 MILLION OF WATER SYSTEM REVENUE BONDS AND THE NEW JERSEY BUILDING AUTHORITY'S 310 MILLION OF REVENUE BONDS PRICES OF MORTGAGE SECURITIES ENDED FLAT IN THIN TRADING IN SECONDARY ACTIVITY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 COUPONS ENDED 1/32 LOWER AT 99 16/32 OTHER 65 COUPONS WERE ALSO DOWN 1/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES TRADED AT 99 19/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED AT 99 15/32 TRADER SAY IT'S UNLIKELY PRICES WILL IMPROVE RELATIVE TO TREASURYS OVER THE NEXT SEVERAL SESSIONS BUT RISING MORTGAGE YIELDS HAVE ELICITED COMMENT FROM MANY INSTITUTIONAL INVESTORS THAT THEY'LL BE READY TO JUMP INTO THE MARKET COME JANUARY MOST OF THESE INVESTORS AGREE THAT THE 1994 PREPAYMENT OUTLOOK IS FAR MORE BULLISH THAN THE KIND OF REFINANCING ACTIVITY SEEN THIS YEAR 9312290023 931229 BUSINESS BRIEF ARTRA GROUP INC BAGCRAFT PACKAGING UNIT GETS FINANCING FOR EXPANSION ARTRA GROUP INC NORTHFIELD ILL SAID ITS BAGCRAFT PACKAGING UNIT RECEIVED A 38 MILLION SENIOR CREDIT FACILITY FROM GENERAL ELECTRIC CAPITAL CORP A UNIT OF GENERAL ELECTRIC CO BAGCRAFT ALSO SAID IT WILL BEGIN BUILDING A 260000SQUAREFOOT MANUFACTURING PLANT IN BAXTER SPRINGS KAN IN PART USING ABOUT 12 MILLION OF FINANCING FROM THE STATE OF KANSAS AND THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT THE COMPANY SAID IT THINKS THE TWO DEVELOPMENTS WILL ACCELERATE AND ENHANCE ARTRA'S AND BAGCRAFT'S GROWTH PROSPECTS THE COMBINED 50 MILLION FINANCING PACKAGE WILL ALLOW THE UNIT TO REPLACE SENIOR BANK DEBT PAY DOWN SUBORDINATED DEBT AND BUILD AND STAFF THE KANSAS FACILITY THE COMPANY SAID TERMS OF THE AGREEMENTS WEREN'T DISCLOSED THE NEW KANSAS PLANT WILL FOCUS ON BAGCRAFT'S FOODSERVICE PRODUCTS BUSINESS WHOSE CUSTOMERS INCLUDE SEVERAL NATIONWIDE FASTFOOD CHAINS SAID ARTRA WHICH ALSO HAS INTERESTS IN FASHION JEWELRY 9312290019 931229 REVCO ACQUIRES STORE IN OHIO TWINSBURG OHIO REVCO DS INC SAID IT IT ACQUIRED THE YMART STORE IN AKRON OHIO TERMS WEREN'T DISCLOSED REVCO SAID THE ACQUISITION IS PART OF A STRATEGY FOR GROWTH IN AKRON REVCO SAID IT OPERATES MORE THAN 1200 DRUGSTORES IN NINE STATES 9312290017 931229 TEXAS JOURNAL ECONOMIC FOCUS SO YOU THINK YOU KNOW THE ECONOMY WE'LL SEE BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL YOU PRIDE YOURSELF ON KNOWING A LOT ABOUT THE TEXAS ECONOMY WELL HERE'S YOUR CHANCE TO FIND OUT HOW MUCH YOU REALLY KNOW IT'S TEXAS JOURNAL'S FIRST ANNUAL TEXAS ECONOMY QUIZ AND WE HAVE TO ADMIT IT ISN'T EASY 9312290016 931229 SMALL STOCK FOCUS TECHNOLOGY SHARES HELP SPUR ADVANCE THAT OUTPACES THAT OF LARGER ISSUES BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALL STOCKS OUTPACED LARGER ISSUES LED IN PART BY TECHNOLOGY SHARES TRADERS SAID GAINS IN MAJOR SEMICONDUCTOR ISSUES SPILLED OVER INTO SMALL CHIP SHARES AND THE TECHNOLOGIES IN GENERAL SOME BIG TECHNOLOGY STOCKS WERE AIDED BY NEWS THAT THE CLINTON ADMINISTRATION WILL SEEK EMERGENCY TALKS WITH JAPAN REGARDING SEMICONDUCTOR TRADE OBSERVERS SAID THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALL STOCKS ON THE NASDAQ STOCK MARKET AND MAJOR EXCHANGES ADDED 131 OR 052 TO 25374 THE NASDAQ COMPOSITE INDEX INCREASED 350 OR 046 TO 76456 IN CONTRAST THE DOW JONES INDUSTRIAL AVERAGE INCHED UP 084 OR 002 TO 379377 AND THE STANDARD & POOR'S 500 STOCK INDEX ROSE 040 OR 009 TO 47094 THE SLIM GAINS THOUGH WERE ENOUGH TO LEAVE BOTH BAROMETERS AT A RECORD FOR A SECOND STRAIGHT DAY TIFFANY & CO TUMBLED 4 1/4 TO 31 7/8 ON THE BIG BOARD ANALYSTS AT MERRILL LYNCH AND GOLDMAN SACHS CUT RATINGS ON THE JEWELRY PRODUCER AND MARKETER LATE MONDAY THE COMPANY SAID ITS WORLDWIDE SALES WERE UP 31 BETWEEN NOV 1 AND CHRISTMAS COMPARED WITH THE YEARAGO PERIOD DIRECT MARKETING SALES THOUGH WERE OFF 7 IMMULOGIC PHARMACEUTICAL JUMPED 2 3/4 TO 12 3/4 AFTER CNBC CABLE TELEVISION REPORTED A NEWSLETTER WRITER'S POSITIVE COMMENTS ABOUT THE COMPANY EVAN STURZA SAID HE EXPECTS IMMULOGIC TO REPORT ENCOURAGING RESULTS EARLY NEXT YEAR ON TESTING OF ITS CATVAX TREATMENT FOR ALLERGIES TO CATS ANOTHER CNBC REPORT LIFTED OLYMPIC FINANCIAL SHARES 3/4 TO 5 1/2 JIM CRABBE OF CRABBE HUSON FUND ADVISORS IN PORTLAND ORE WAS SAID TO HAVE MADE POSITIVE REMARKS ABOUT THE MINNEAPOLIS COMPANY ON CNBC LATE MONDAY OLYMPIC BUYS AND SECURITIZES AUTO LOANS MERRYGOROUND CONTINUED TO RISE ADDING 1/2 TO 3 3/4 ON THE NEW YORK STOCK EXCHANGE A SPOKESMAN FOR THE APPAREL RETAILER ON MONDAY SAID THE COMPANY WASN'T AWARE OF ANY REASON FOR THE STRENGTH IN ITS SHARES WHICH GAINED 5/8 MONDAY THE STOCK PLUNGED EARLIER THIS MONTH AFTER THE COMPANY SAID IT HAD MISSED PAYMENTS TO SUPPLIERS AND COULD SEEK BANKRUPTCY LAW PROTECTION HONDO OIL & GAS ADDED 3/8 TO 6 1/2 AFTER THE COMPANY SAID IT AGREED TO RESTRUCTURE DEBT OWNED TO LONRHO IN A MOVE THAT WILL SUBSTANTIALLY CUT ITS INTEREST COSTS SEPARATELY THE COMPANY REPORTED A LOSS FROM CONTINUING OPERATIONS OF 67 CENTS A SHARE FOR THE YEAR ENDED SEPT 30 COMPARED WITH PROFIT FROM CONTINUING OPERATIONS OF 57 CENTS A SHARE A YEAR AGO MICRO HEALTHSYSTEMS ADDED 1/4 TO 5 1/8 THE COMPANY RECEIVED A CONTRACT TO PROVIDE OUTPATIENT BILLING SERVICES TO THE UNIVERSITY OF MEDICINE AND DENTISTRY OF NEW JERSEY HOSPITAL IN NEWARK THE PACT WHICH RUNS THROUGH JUNE 1995 WILL HAVE A MINIMUM VALUE OF 3 MILLION IT SAID PERCEPTRON ADDED 3/4 TO 12 1/4 THE COMPANY RECEIVED 82 MILLION IN NEW ORDERS FROM THREE CUSTOMERS FOR MACHINERY TO BE USED IN AUTO MANUFACTURING PLANTS IT HAD SALES LAST YEAR OF 145 MILLION CELEBRITY LOST 7/8 TO 4 3/8 AFTER THE MAKER OF ARTIFICIAL FLOWERS SAID IT EXPECTS TO REPORT A LOSS FOR THE SECOND QUARTER WHICH ENDS THIS MONTH COMPARED WITH NET INCOME OF 27 CENTS A SHARE LAST YEAR IT BLAMED NARROWED PROFIT MARGINS AT ITS MAGICSILK UNIT SUN TELEVISION JUMPED 2 1/8 TO 21 1/4 IT REPORTED THIRDQUARTER EARNINGS OF 23 CENTS A SHARE UP FROM 18 CENTS A YEAR AGO DESPITE AN INCREASE IN ITS SHARES OUTSTANDING THE ELECTRONICS RETAILER'S RESULTS TOPPED ANALYSTS' EXPECTATIONS SIMPSON INDUSTRIES ADDED 1 1/2 TO 19 3/4 KIDDER PEABODY INCREASED AN INVESTMENT RATING ON THE COMPANY'S STOCK TO STRONG BUY FROM NEUTRAL THE COMPANY MAKES CAR PARTS CLINICOM ADDED 1 1/4 TO 19 1/4 AND HBO GAINED 3/4 TO 44 1/8 CLINICOM AND HBO WILL JOINTLY MARKET A CLINICAL INFORMATION SYSTEM THAT COMBINES PRODUCTS MADE BY EACH COMPANY TERMS WEREN'T DISCLOSED THE RUSSELL 2000 REMAINS 643 OR 25 BELOW ITS RECORD WHICH HAS STOOD SINCE NOV 2 THE NASDAQ COMPOSITE INDEX IS 2286 OR 29 BELOW THE RECORD HIGH THAT WAS SET ON OCT 15 BUT THOSE RECORDS COULD FALL NEXT MONTH IF THE MARKET FOLLOWS ITS HISTORIC PATTERN OF STRENGTH IN JANUARY SAID JOEL TILLINGHAST MANAGER OF FIDELITY INVESTMENTS' LOW PRICE STOCK FUND IF PEOPLE STAY AS CHEERY AS THEY HAVE BEEN OF LATE IT WOULDN'T BE SURPRISING TO SEE A 10 OR 15 RISE IN THE RUSSELL OR NASDAQ NEXT MONTH ALONE MR TILLINGHAST SAID INVESTORS ARE ENCOURAGED ABOUT THE ECONOMY'S PROSPECTS AND ARE HOPEFUL THAT INFLATION WILL STAY IN CHECK HE SAID MEANWHILE MUTUAL FUNDS PROBABLY WILL RECEIVE A HEAVY INFLOW OF NEW MONEY NEXT MONTH THAT WILL BE PLOWED INTO STOCKS MR TILLINGHAST SAID MANY INVESTORS SHARE THE OPTIMISTIC VIEW OF THE PROSPECTS FOR SMALL STOCKS NEXT MONTH TRADERS SAID THOSE INVESTORS WERE PLACING BETS WITH BUY ORDERS YESTERDAY THEY ADDED IT'S THE JANUARY EFFECT IN LATE DECEMBER SAID LESLIE SEFF HEAD OF NASDAQ TRADING AT WAGNER STOTT & CO REFERRING TO BUYING THAT SMALL STOCKS TRADITIONALLY HAVE ATTRACTED IN JANUARY AFTER BEING DEPRESSED BY TAXRELATED SELLING LATE IN THE PRIOR YEAR ADVANCING NASDAQ ISSUES OUTPACED DECLINERS 1534 TO 1428 NASDAQ NATIONAL MARKET VOLUME REACHED 196906300 SHARES UP FROM 150236200 MONDAY TOTAL VOLUME ON THE MARKET ROSE TO 247610000 SHARES FROM 182553500 9312290015 931229 LAW LEGAL BEAT HIGH COURT'S RULING BROADENING SCIENTIFIC EVIDENCE SPLITS STATES BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL AN IMPORTANT JUNK SCIENCE RULING BY THE US SUPREME COURT LAST SUMMER IS BEING SPURNED BY SOME STATE COURTS A DEVELOPMENT WITH POTENTIAL IMPLICATIONS FOR PRODUCTLIABILITY LAWSUITS STATE COURTS AREN'T OBLIGED TO FOLLOW FEDERALCOURT STANDARDS FOR ALLOWING EVIDENCE AT TRIAL IN THIS CASE EVIDENCE CONCERNING SCIENTIFIC THEORIES THAT LINK TOXIC SUBSTANCES WITH VARIOUS DISEASES AND BECAUSE SOME STATE COURTS ARE STICKING TO THEIR OWN APPROACHES LAWYERS HAVE A NEW FACTOR TO CONSIDER WHEN DECIDING WHETHER THEIR CASES SHOULD BE HEARD IN STATE OR FEDERAL COURT GENERALLY PLAINTIFFS PREFER TO HAVE RELAXED STANDARDS FOR INTRODUCING EXPERT TESTIMONY SINCE THEY MAY WANT TO USE NEW SCIENTIFIC THEORIES TO BOLSTER CLAIMS THAT A DEFENDANT'S PRODUCT CAUSED A PARTICULAR INJURY OR DISEASE CONVERSELY BUSINESS DEFENDANTS USUALLY ASK THE JUDGE TO EXCLUDE NOVEL SCIENTIFIC EVIDENCE JUMPING INTO THE DEBATE IN LATE JUNE THE US SUPREME COURT SEEMED TO SIDE MORE WITH THE PLAINTIFFS RULING THAT QUALIFIED EXPERTS CAN TESTIFY IN FEDERAL COURTS ABOUT THEIR OPINIONS AND SUMMARIZE RESEARCH IF THE TRIAL JUDGE THINKS THEIR CONTRIBUTIONS WOULD HELP A JURY UNDERSTAND A CASE PREVIOUSLY MOST STATE AND FEDERAL COURTS HAD REQUIRED THAT SCIENTIFIC EVIDENCE BE BASED ON GENERALLY ACCEPTED EXPERIMENTAL METHODS IN APPEARING TO ALLOW LESS DEVELOPED THEORIES TO BE PRESENTED THE SUPREME COURT NOTED THAT LEGITIMATE NEW DISCOVERIES OFTEN AREN'T IMMEDIATELY ACCEPTED BY THE SCIENTIFIC COMMUNITY THE RULING FAVORED TWO FAMILIES THAT CLAIMED THAT BENDECTIN AN ANTINAUSEA DRUG FOR PREGNANT WOMEN CAUSED DEFORMITIES IN THEIR CHILDREN EXPERTS TESTIFYING FOR THE FAMILIES WANTED TO PRESENT A REANALYSIS OF PREVIOUS BENDECTIN STUDIES THE REANALYSIS HADN'T BEEN SUBJECTED TO PEER REVIEW OR BEEN PUBLISHED IN A PROFESSIONAL JOURNAL AND WAS IN FACT GENERATED SOLELY FOR THE LITIGATION FEDERAL COURTS WHICH ARE BOUND BY US SUPREME COURT DECISIONS IMMEDIATELY STARTED FOLLOWING GUIDELINES IN THE RULING KNOWN AS DAUBERT BUT ARIZONA'S SUPREME COURT WAS AMONG THOSE STATE COURTS THAT SAID THEY WOULD STICK TO THE STATE'S PREVIOUS AND MORE STRINGENT RULES ABOUT ADMITTING EVIDENCE IN APPLICATION DAUBERT LEAVES MANY QUESTIONS UNANSWERED THE ARIZONA COURT SAID IN AUGUST FOR THE PRESENT AT LEAST WE RESOLVE THIS CASE WITHOUT SIGNIFICANT CHANGE IN EXISTING EVIDENTIARY LAW A CALIFORNIA APPELLATE COURT HAS RULED SIMILARLY ACCORDING TO ANDRE V TOLPEGIN A SAN FRANCISCO CORPORATE DEFENSE LAWYER WHO HAS WRITTEN ON THE ISSUE MEANWHILE APPEALS COURTS IN FLORIDA ILLINOIS MARYLAND MINNESOTA AND MISSOURI HAVE SAID THEY WILL HEW TO THE OLDER STANDARDS UNTIL THEIR STATE SUPREME COURTS TAKE UP THE ISSUE NEW MEXICO'S SUPREME COURT ON THE OTHER HAND EMBRACED THE DAUBERT APPROACH PAUL C GIANNELLI A LAW PROFESSOR AT CASE WESTERN RESERVE UNIVERSITY WHO SPECIALIZES IN EVIDENCE SAID IT'S TOO EARLY TO TELL WHICH APPROACH WILL PREVAIL MEANWHILE HOWEVER MR TOLPEGIN IS ADVISING CORPORATE DEFENSE LAWYERS TO DO A LITTLE FORUM SHOPPING AND CONSIDER USING STATE COURTS INSTEAD OF FEDERAL COURTS LAWYERS OFTEN CAN CHOOSE ONE COURT OR THE OTHER IF FOR INSTANCE ISSUES OF BOTH STATE AND FEDERAL LAW COME UP IN A CASE IF DEFENSE LAWYERS DECIDE THAT LOCAL COURTS IN SOME STATES ARE NOW MORE HOSPITABLE THAN FEDERAL COURTS IT WILL BE A SWITCH FROM THE NORM GENERALLY DEFENDANTS HAVE PREFERRED FEDERAL COURTS WHERE THEY HAVE PERCEIVED THE RULES TO BE LESS PROPLAINTIFF DON KEENAN AN ATLANTA PLAINTIFFS' ATTORNEY AND IMMEDIATE PAST PRESIDENT OF THE AMERICAN BOARD OF TRIAL ADVOCATES LOS ANGELES WARNED THAT A SWITCH IN DEFENDANTS' PREFERENCE TO STATE COURTS WOULD BE PREMATURE BECAUSE IT'S UNCLEAR WHETHER DAUBERT A COMPLEX RULING ULTIMATELY IS BETTER FOR PLAINTIFFS OR DEFENDANTS IF YOU PUT THREE LAWYERS IN A ROOM YOU'RE GOING TO GET THREE DIFFERENT INTERPRETATIONS OF DAUBERT MR KEENAN SAID I THINK IT'S GOING TO BE A WHILE UNTIL THE FEDERAL COURTS START PUTTING TEETH IN DAUBERT AND I HAVE NOT NOTICED ANY MASSIVE EXODUS IN FEDERAL COURT OR ANY INCREASE IN STATE COURTS 9312290013 931229 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CONCORD HOLDING CORP AN INITIAL OFFERING OF 21 MILLION COMMON SHARES VIA BEAR STEARNS & CO AND MONTGOMERY SECURITIES EQUITY INNS INC AN INITIAL OFFERING OF 4460000 COMMON SHARES VIA MORGAN KEEGAN & CO FOCAL SURGERY INC A RIGHTS OFFERING OF UP TO 14 MILLION COMMON SHARES AT 1 EACH ROCKTENN CO AN INITIAL OFFERING FOR 45 MILLION CLASS A COMMON SHARES VIA MORGAN STANLEY & CO JP MORGAN SECURITIES INC AND ROBINSONHUMPHREY CO 9312290012 931229 ECONOMY CONSUMERS GAIN CONFIDENCE IN THE ECONOMY CONFERENCE BOARD INDEX FOR DECEMBER CLIMBED TO 802 A 3YEAR HIGH BY RACHEL ENGLEHART STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMERS AREN'T QUITE DANCING IN THE STREETS BUT THEY'RE FEELING BETTER THE CONFERENCE BOARD SAID ITS INDEX OF CONSUMER CONFIDENCE POSTED A HEALTHY INCREASE OF MORE THAN EIGHT POINTS IN DECEMBER REGISTERING 802 THE HIGHEST LEVEL SINCE SEPTEMBER 1990 A READING OF 80 HAS HISTORICALLY BEEN ASSOCIATED WITH A FAIRLY GOOD ECONOMY SAID FABIAN LINDEN DIRECTOR OF THE BUSINESS RESEARCH ORGANIZATION'S CONSUMER CENTER PEOPLE SEEM TO BE IN BETTER SPIRITS THAN THEY HAVE BEEN IN A LONG TIME CONSUMERS IN DECEMBER GREW SLIGHTLY MORE POSITIVE ABOUT THE CURRENT STATE OF THE ECONOMY AND MARKEDLY MORE OPTIMISTIC ABOUT THE NEXT SIX MONTHS THE CONFERENCE BOARD NOTED A SLIGHT INCREASE IN THE FRACTION OF RESPONDENTS WHO SAY JOBS ARE PLENTIFUL ALTHOUGH PESSIMISTS STILL OUTNUMBER OPTIMISTS ON THAT ISSUE THE INCREASE IN CONSUMER CONFIDENCE BRINGS IT MORE IN LINE WITH AN UPWARD TREND IN CONSUMER SPENDING THERE HAS BEEN A CONFLICT IN THE PAST MONTHS SAID CHARLES LIEBERMAN AN ECONOMIST AT CHEMICAL SECURITIES CONSUMER SPENDING WAS UP BUT CONFIDENCE WAS DOWN BUT WITH CONFIDENCE RISING THE NUMBERS ARE MORE IN LINE WITH THE GENERAL ATMOSPHERE OF THE ECONOMY ECONOMISTS ARE ESPECIALLY UPBEAT BECAUSE OF INCREASED SPENDING ON AUTOS FURNITURE AND OTHER BIGTICKET GOODS THE REPORT SUGGESTS THAT THE RECENT IMPROVEMENT IN CONSUMER SPENDING WILL CONTINUE FOR SOME TIME SAID MARILYN SCHAJA AN ECONOMIST AT DONALDSON LUFKIN & JENRETTE IT LOOKS LIKE 1994 WILL START OFF WELL SAID JAMES SMITH PROFESSOR OF FINANCE AT KENNANFLAGER BUSINESS SCHOOL AT THE UNIVERSITY OF NORTH CAROLINA INDEED ECONOMISTS CURRENTLY DON'T SEE ANYTHING TO BREAK THE ECONOMY'S MOMENTUM I DON'T SEE ANY SEVERE PROBLEMS SAID MR SMITH BECAUSE EVERYTHING IN THE ECONOMY IS GROWING RETAILERS ARE HAPPY CONSUMERS ARE BUYING AMERICAN AND THAT'S PUTTING PEOPLE BACK TO WORK OTHER CONSUMERCONFIDENCE POLLS TELL A SIMILAR STORY THE LATEST UNIVERSITY OF MICHIGAN MEASURE WAS ALSO UP STRONGLY IN DECEMBER BUT SINCE THERE HAVE BEEN ONLY TWO MONTHS OF GOOD NEWS SOME ECONOMISTS ARE STILL WARY THE NEWS IS VERY GOOD AND IT'S HIGHLY LIKELY THAT IT WILL CARRY THROUGH SAID MR LINDEN BUT IT'S NOT INEVITABLE CONSUMER CONFIDENCE FELL SHARPLY IN THE FALL OF 1990 AND HAS REBOUNDED SEVERAL TIMES SINCE ONLY TO FALL BACK AGAIN THE CONFERENCE BOARD SURVEY BASED ON A MAIL SURVEY OF 5000 HOUSEHOLDS FOUND THAT CONFIDENCE WAS UP IN THE EAST BUT DOWN OR STAGNANT IN MUCH OF THE WEST ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9312290008 931229 TECHNOLOGY & HEALTH NEW YORK PANEL PROPOSES DEREGULATION OF PHONE SERVICE TO SPUR DATA NETWORK BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A HIGHLEVEL NEW YORK STATE PANEL PROPOSED THAT THE STATE SHARPLY AND QUICKLY DEREGULATE TELEPHONE SERVICE TO BOOST COMPETITION AND ASSIST THE MERGING OF PHONE CABLE AND INFORMATION SERVICES THE 37MEMBER NEW YORK TELECOMMUNICATIONS EXCHANGE APPOINTED BY GOV MARIO CUOMO CALLED ON STATE AUTHORITIES TO ALLOW LOCAL PHONE COMPANIES SUCH AS NEW YORK TELEPHONE CO TO HELP BUILD A STATEWIDE NETWORK OF NETWORKS THE NETWORK APPARENTLY THE FIRST SUCH PROPOSED FOR ANY STATE WOULD EVENTUALLY CONNECT PHONE CABLE AND OTHER SERVICES AND WOULD BE RENTED BY THE PHONE COMPANIES TO OTHER SERVICE PROVIDERS IN RETURN FOR THEIR INVESTMENT NEW YORK TELEPHONE AND OTHERS WOULD BE GRANTED GREATER INDEPENDENCE FROM STATE REGULATORS IN SETTING PRICES FOR THEIR SERVICES AND IN MAKING FUTURE INVESTMENTS IN NONTRADITIONAL BUSINESSES SUCH AS CABLE TV NEW YORK TELEPHONE IS A UNIT OF NYNEX CORP WHAT WE ARE CALLING FOR IS AN ALTERNATIVE PLAN OF REGULATION FOR LOCAL PHONE COMPANIES SAID STAN LUNDINE THE STATE'S LIEUTENANT GOVERNOR TELECOMMUNICATIONS COMPANIES WOULD BE FREE TO MAKE MANY DECISIONS WITHOUT HAVING TO GO THROUGH THE CURRENT BURDENSOME RATEOFRETURN PROCESS IN WHICH A UTILITY'S PERMITTED REVENUE IS DETERMINED BY ITS COSTS THE RECOMMENDATIONS OF THE PANEL WHICH INCLUDES REPRESENTATIVES FROM MAJOR TELECOMMUNICATIONS COMPANIES INCLUDING NYNEX AMERICAN TELEPHONE & TELEGRAPH CO PRODIGY SERVICES CO TIME WARNER INC AND NORTHERN TELECOM LTD ARE EXPECTED TO BE ADOPTED SPEEDILY MR LUNDINE SAID MANY REQUIRE ADMINISTRATIVE CHANGES AND SO COULD BE IMPLEMENTED IN 1994 THOUGH SOME REQUIRE LEGISLATIVE ACTION SO COULD TAKE LONGER THE MOST CONTROVERSIAL RECOMMENDATION CALLS FOR A MERGING OF THE STATE'S PUBLIC SERVICE COMMISSION AND THE COMMISSION ON CABLE TELEVISION WHICH SEPARATELY REGULATE TELEPHONE AND CABLE SERVICES ALTHOUGH IT MIGHT TAKE MORE THAN A YEAR TO BE ADOPTED SUCH A RECOMMENDATION COULD HASTEN THE ENTRY OF PHONE COMPANIES INTO THE CABLETV BUSINESS AND VICE VERSA THE PANEL'S RECOMMENDATIONS WERE WELCOMED BY NEW YORK TELEPHONE WHICH IS THE STATE'S DOMINANT PROVIDER OF PHONE SERVICES AND HAS BEEN SEEKING REDUCTIONS IN REGULATORY OVERSIGHT IT IS A DIFFERENT PHILOSOPHY OF REGULATION A SPOKESMAN SAID THE REPORT GIVES A SENSE OF URGENCY TO THOSE RESPONSIBLE FOR SETTING POLICY MR LUNDINE SAID HE EXPECTED NYNEX WOULD BE THE MAJOR PLAYER AND MAJOR PROVIDER OF RESOURCES IN THE CONSTRUCTION OF THE PROPOSED NETWORK IT ALREADY DOMINATES THE STATE'S HOMETELEPHONE SERVICE AND IT PLANS EVENTUALLY TO UPGRADE ITS CURRENT NETWORK AND INSTALL ADDITIONAL FIBEROPTIC LINES THAT COULD CONCEIVABLY CARRY PHONE DATA AND VIDEO SERVICES WE'RE READY TO PROVIDE THE NECESSARY FINANCIAL RESOURCES TO DO THAT THE NEW YORK TELEPHONE SPOKESMAN SAID NEW YORK TELEPHONE HAS SOUGHT GREATER INDEPENDENCE FROM REGULATORS SAYING IT IS NEEDED TO OVERCOME INTENSE PRESSURE FROM NEW COMPETITORS ON ITS TURF IN NEW YORK CITY FOR INSTANCE IT FACES INCREASING COMPETITION FROM PROVIDERS OF PHONE SERVICE ON FIBEROPTIC LINES INCLUDING METROPOLITAN FIBER SYSTEMS INC AND TELEPORT TELECOMMUNICATIONS GROUP INC NEW YORK TELEPHONE WAS ALSO DEALT A BLOW RECENTLY WHEN THE STATE'S PUBLIC SERVICE COMMISSION ORDERED A 170 MILLION RATE CUT FOR PHONE CUSTOMERS IN 1994 THE COMMISSION ALSO INSTRUCTED THE COMPANY TO SET ASIDE 156 MILLION TO IMPROVE SERVICE IN CERTAIN AREAS UNDER ITS RECOMMENDATIONS THE PANEL SAID NEW YORK HAS A HIGH TAX RATE RELATIVE TO OTHER STATES AND CALLED FOR NO NEW TAXES ON COMPANIES THAT OWN COMMUNICATIONS NETWORKS OR PROVIDE INFORMATION SERVICES MR LUNDINE ALSO SUGGESTED THAT THE PANEL'S PROPOSED REGULATORY FRAMEWORK COULD BE A BLUEPRINT FOR OTHER STATES SEEKING INNOVATIVE APPROACHES TO REGULATING PHONE COMPANIES 9312290007 931229 BUSINESS BRIEF GREAT AMERICAN COMMUNICATIONS OVERHAUL TO REDUCE DEBT STOCK OBLIGATION COMPLETED GREAT AMERICAN COMMUNICATIONS CO CINCINNATI SAID IT COMPLETED ITS FINANCIAL RESTRUCTURING PLAN TO REDUCE ITS DEBT AND PREFERREDSTOCK OBLIGATIONS TO 433 MILLION FROM 910 MILLION AND ITS ANNUAL FIXED CHARGES TO 41 MILLION FROM MORE THAN 94 MILLION THE COMPANY SAID IT CLOSED A JOINT PREPACKAGED REORGANIZATION PLAN FOR GACC AND TWO OF ITS HOLDINGCOMPANY UNITS GACC ALSO SAID GREAT AMERICAN TELEVISION & RADIO COMPANY INC'S BANK CREDIT FACILITY AND GREAT AMERICAN BROADCASTING CO'S 13 SENIOR SUBORDINATED NOTES WERE REFINANCED GACC SAID THAT AS PART OF THE REORGANIZATION AND IN EXCHANGE FOR DEBT OUTSTANDING AND PREFERRED STOCK IT ISSUED ABOUT 725 MILLION OF 14 SENIOR EXTENDIBLE PAYINGKIND NOTES INITIALLY DUE 2001 AND ABOUT 113 MILLION COMMON SHARES AFTER A 1FOR300 REVERSE STOCK SPLIT 9312290006 931229 BUSINESS BRIEF TIMKEN CO TO TAKE 4THQUARTER CHARGE ELIMINATE 2200 JOBS CANTON OHIO TIMKEN CO FACING INCREASING COMPETITION FROM LOWCOST RIVALS SAID IT WILL TAKE A 48 MILLION CHARGE RESULTING IN A FOURTHQUARTER LOSS AND WILL ELIMINATE 2200 POSITIONS WORLDWIDE THE COMPANY SAID THE PRETAX CHARGE IS EXPECTED TO REDUCE FOURTHQUARTER PROFIT BY 113 A SHARE THE MAKER OF BEARINGS AND ALLOY STEELS SAID IT STILL EXPECTS TO REPORT OPERATING PROFIT FOR THE QUARTER AND YEAR IN THE YEARAGO QUARTER THE COMPANY EARNED 112000 OR ZERO CENTS A SHARE ON SALES OF 398 MILLION FOR 1992 TIMKEN EARNED 45 MILLION OR 15 CENTS A SHARE ON SALES OF 16 BILLION THE COMPANY SAID THE BULK OF THE CHARGE RELATES TO THE COST OF LAYING OFF 900 WORKERS WORLDWIDE WITH THE REST OF THE JOB CUTS EXPECTED THROUGH ATTRITION AND EARLY RETIREMENT TIMKEN HAS 16000 WORKERS WORLDWIDE THE CHARGE WILL ALSO COVER THE COST OF WRITING DOWN INVENTORY AND OLD EQUIPMENT THE GOAL IS TO IMPROVE PROFITABILITY AND INCREASE THE COMPANY'S RETURN ON INVESTED CAPITAL SAID JOSEPH F TOOT JR TIMKEN'S CHIEF EXECUTIVE OFFICER WORLD WIDE COMPETITIVE CONDITIONS DEMAND THAT WE GO FORWARD WITH VIGOROUS ACTIONS JOHN JACOBSON AN INDUSTRY CONSULTANT SAID TIMKEN'S COSTCUTTING MOVES FOLLOW SIMILAR EFFORTS BY COMPETITORS HE ADDED THAT BIG JOB CUTS IN THE INDUSTRY HAVE RESULTED IN HIGHER PRODUCTIVITY AND SUBSEQUENT COST REDUCTIONS OF 20 TO 30 IN RECENT YEARS TIMKEN HAS BEEN HURT BY THE RECESSION IN EUROPE AND A SLOW JAPANESE MARKET THOUGH IN THE US IT HAS BEEN HELPED BY THE IMPROVING HEALTH OF THE DOMESTIC AUTOMOBILE INDUSTRY THE COMPANY REPORTEDLY HAS BEEN THE TARGET OF RECENT SHAREHOLDER INITIATIVES OVER EXECUTIVE COMPENSATION A SPOKESMAN DECLINED TO CONFIRM WHETHER ANY SHAREHOLDER RESOLUTIONS HAVE BEEN FILED BUT SAID THE COMPANY COULD BE TARGETED BUT THAT DOESN'T MEAN PAY IS EXCESSIVE 9312290005 931229 ECONOMY COMPANIES WORRY THAT BORROWING COSTS COULD CLIMB BECAUSE OF NEW FED RULE BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL CORPORATE TREASURERS HAVE SOMETHING NEW TO WORRY ABOUT A FEDERAL RESERVE BOARD RULE THAT COULD MAKE IT COSTLIER FOR COMPANIES TO BORROW MONEY TO COVER THE CHECKS THEY WRITE THE NEW RULE WHICH TAKES EFFECT MONDAY WILL ENCOURAGE BANKS TO CLEAR MORE CORPORATE CHECKS WITH EACH OTHER RATHER THAN THROUGH THE FED THE PROBLEM IS THAT MOST BANKS AREN'T EQUIPPED YET TO HANDLE SUCH CHECKS QUICKLY SO COMPANY TREASURERS ARE LIKELY TO FACE DELAYS IN FINDING OUT FROM BANKS HOW MUCH MONEY THEY'LL NEED TO RAISE EACH DAY TO COVER THE COMPANY'S CHECKS ACCOUNTS THAT OFFER COMPANIES SUCH NOTIFICATION ARE CALLED CONTROLLED DISBURSEMENT ACCOUNTS WE NEED TO KNOW BY 930 IN THE MORNING SAYS ROGER HEINS DIRECTOR OF TREASURY SERVICES FOR PITTSBURGH PHARMACEUTICAL CONCERN MILES INC A UNIT OF GERMANY'S BAYER AG THE TIMING IS CRUCIAL BECAUSE FUNDS ARE USUALLY CHEAPER AND MORE PLENTIFUL EARLY IN THE MORNING WHEN INVESTORS SUCH AS MONEYMARKET FUNDS ARE READY TO COMMIT MONEY FOR A BIG COMPANY BORROWING SEVERAL MILLION DOLLARS A DAY PAYING EVEN A FRACTION OF A PERCENTAGE POINT MORE THAN NEEDED IS CONSIDERED AN ANATHEMA MOREOVER SAYS MR HEINS WITHOUT PRECISE DATA EARLY WE RUN THE RISK OF RAISING MORE MONEY THAN WE NEED OR HAVING TO KEEP AN AVERAGE OVERNIGHT BALANCE OVER THE PAST DECADE COMPANIES HAVE BECOME EXPERT AT TIMING THEIR INVESTMENTS AND BORROWING TO KEEP THEIR CASH FROM SITTING IDLE IN NONINTERESTBEARING CHECKING ACCOUNTS ON ANY GIVEN DAY MILES'S CHECKING ACCOUNTS GO FROM ZERO TO 10 MILLION AND THEN BACK TO ZERO AGAIN UNTIL NOW BANKS SEEKING PAYMENT SIMPLY PRESENTED BUNDLES OF CHECKS TO A FED DISTRICT BANK WHICH CHARGED THEM A PERCHECK FEE THE BANKS ON WHICH THE CHECKS WERE DRAWN DISCOURAGED DIRECT PRESENTMENT BY CHARGING EVEN HIGHER FEES THE SYSTEM WORKED WELL BECAUSE THE FED WOULD SORT THE CHECKS AND THEN SHORTLY AFTER DAWN TELL THE PAYING BANKS HOW MUCH HAD TO BE DRAWN OUT OF EACH ACCOUNT THOSE BANKS IN TURN WOULD QUICKLY TELL CORPORATE CUSTOMERS SO THEY COULD FUND THOSE ACCOUNTS THE NEW FED RULE HOWEVER FORBIDS BANKS FROM CHARGING EACH OTHER FOR DIRECT PRESENTMENT WHILE STILL REQUIRING SAMEDAY PAYMENT IF CHECKS ARE PRESENTED BY 8 AM MANY BANKS ARE EXPECTED TO BYPASS THE FED TO AVOID ITS EXISTING FEES NOW THAT THEY CAN GO DIRECTLY TO PAYING BANKS FREE OF CHARGE AS A RESULT EVEN MORE CORPORATE CHECKS THAN BEFORE ARE LIKELY TO BE PRESENTED FOR SAMEDAY PAYMENT WHICH HELPS THE FED MEET ITS OBJECTIVE OF PROMOTING MOREEFFICIENT WAYS OF TRANSFERRING MONEY BANKERS OFFERING THE DISBURSEMENT ACCOUNTS ARE WORRIED HOWEVER ANY BANK FROM TIMBUKTU CAN DROP A MIXED BAG OF CHECKS ON OUR DOORSTEP AT 8 AM SAYS BRUCE BRETT A VICE PRESIDENT AT SIGNET BANKING CORP'S SIGNET BANK UNIT IN RICHMOND VA TO BE READY HE AND OTHER BANKERS LIKE HIM ARE CALLING ALL OVER THE PLACE TO SEE WHICH BANKS ARE GOING TO DELIVER CHECKS FOR PAYMENT MR BRETT EXPECTS EVEN THE BIGGEST BANKS WILL HAVE TROUBLE MEETING THE CURRENT SCHEDULE OF GIVING TREASURERS BETWEEN 70 AND 80 OF THEIR DEBIT DATA BY 9 AM WITH THE REST BY 945 AM TO 10 AM IT WILL BE FLIPFLOPPED HE SAYS WITH MANY BANKS NOT EVEN ABLE TO REPORT FULLY BY 10 AM THE STAKES ARE LARGE BECAUSE UPWARD OF 5000 COMPANIES NOW HAVE DISBURSEMENT ACCOUNTS AT ABOUT 300 BIG BANKS TENS OF THOUSANDS OF CHECKS TOTALING SOME 15 BILLION ARE DRAWN ON THOSE ACCOUNTS EACH DAY THE LARGEST COMPANIES ARE MOST AFFECTED BECAUSE THEY USUALLY TAP THE MONEY MARKETS TO COVER THE CHECKS THEY WRITE SMALLER COMPANIES GENERALLY USE BANK CREDIT LINES WHICH ARE MORE EXPENSIVE CORPORATIONS SAY BANKS RISK LOSING THEIR BUSINESS IF THEY CAN'T UPDATE THE WAY CHECKS ARE CLEARED THERE'S A CHANCE FOR MOREEFFICIENT BANKS TO GAIN BUSINESS SAYS JAN DEUR ASSISTANT TREASURER AT TELECOMMUNICATIONS CONCERN GTE CORP OTHER TREASURERS SAY A BREAKDOWN IN THE CURRENT SYSTEM WOULD SPUR THEM TOWARD CUTTING BANKS AND CHECKS OUT OF THE PROCESS THEY WOULD ROUTE PAYMENT INFORMATION ELECTRONICALLY THROUGH THE AUTOMATED CLEARING HOUSE THE WAY PAYROLL IS DEBITED AND CREDITED BIG BANKS INSIST THEY ARE UP TO THE TASK JAY SIMMONS A VICE PRESIDENT OF CITICORP'S CITIBANK DELAWARE UNIT SAYS HIS BANK AND SOME OTHER EAST COAST BANKS WILL PAY THE FED TO PROCESS THEIR CHECKS JUST AS PRESENTING BANKS HAD DONE BEFORE CITIBANK ALSO HAS LINED UP CORESTATES FINANCIAL CORP A MAJOR CHECKPRESENTING BANK TO RECEIVE ELECTRONIC TRANSMISSION OF INFORMATION WELL BEFORE 8 AM AND IT IS ONE OF ABOUT 50 MAJOR BANKS SPEEDING UP ELECTRONIC CHECK PRESENTMENT THROUGH THE ELECTRONIC CHECK CLEARING HOUSE ORGANIZATION A JOINT PROGRAM LINKING SENDERS AND RECEIVERS OF CHECK DATA AS THE LINKAGES GROW THROUGHOUT NEXT YEAR PROPONENTS SAY TREASURERS COULD RECEIVE EVEN SPEEDIER REPORTS CITIBANK'S MR SIMMONS ALSO HOPES BIG BANKS WILL REFRAIN FROM SENDING EACH OTHER TOO MANY CHECKS IF THEY ARE NOT REASONABLE WE CAN DO TO THEM WHAT THEY ARE DOING TO US HE SAYS DON'T COUNT ON IT SAYS THOMAS LOGAN AN OFFICIAL WITH THE TREASURY MANAGEMENT ASSOCIATION THERE ARE SOME FIERCE RIVALRIES OUT THERE WITH EAST COAST BANKS SEEN AS OVERLY AGGRESSIVE DESPITE THE JAN 3 EFFECTIVE DATE MOST BANKS PROBABLY WON'T BE GEARED UP TO SWITCH FROM THE FED UNTIL THE SECOND OR THIRD WEEK IN JANUARY BUT THEN EVEN THE FED SAYS IT ISN'T SURE WHAT WILL HAPPEN ASKED FOR AN ESTIMATE FLORENCE YOUNG ASSOCIATE DIRECTOR OF RESERVE BANK OPERATIONS SAYS I DON'T THINK WE HAVE A GOOD SENSE OF THAT AND I'M NOT SURE THE BANKS DO AT THIS POINT 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 9312290004 931229 ENTERPRISE ARK RESTAURANTS DIFFER IN LOOKS EARN BIG PROFITS BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL THROW AWAY THE COOKIE CUTTER THAT HAS BEEN THE SIMPLE STRATEGY OF ENTREPRENEUR MICHAEL WEINSTEIN IN BUILDING A SUCCESSFUL CHAIN OF RESTAURANTS IN NEW YORK AND OTHER CITIES WHILE MOST CHAINS STRING LOOKALIKE EATERIES ACROSS THE CULINARY LANDSCAPE EACH OF MR WEINSTEIN'S ARK RESTAURANTS CORP ESTABLISHMENTS HAS AN AMBIANCE ALL ITS OWN AND THE COMBINATION OF CENTRALIZED MANAGEMENT AND DINING DIVERSITY HAS MADE ARK HUGELY PROFITABLE UP 25 FROM THE LAST FISCAL YEAR TO 19 MILLION IN AN INDUSTRY WHERE FAILURE IS COMMON MANY NEW YORKERS FOR EXAMPLE HAVE NO IDEA THAT AN AMERICAN PLACE ON PARK AVENUE OFFERING ROAST BREAST OF GRIGGSTOWN PHEASANT WRAPPED IN AUTUMN GREENS IS MANAGED BY THE SAME COMPANY THAT RUNS THE FRENCH BISTRO POIRET AND THE ITALIAN EATERY ERNIE'S BOTH ON THE UPPER WEST SIDE AND THAT IS EXACTLY THE POINT ALL OF ARK'S 26 RESTAURANTS INCLUDING LOCATIONS IN WASHINGTON DC BOSTON CALIFORNIA AND SOON ONE IN MIAMI ARE TO THE UNTRAINED EYE UNRECOGNIZABLE AS UNITS OF AN EMPIRE WE DON'T WANT TO DILUTE WITH A BRAND NAME SAYS MR WEINSTEIN HE ADDS THAT ARK WHICH HE FOUNDED AND LATER TOOK PUBLIC WILL NEVER CONSIDER SELLING FRANCHISES MILFORD PREWITT A SENIOR EDITOR AT NATION'S RESTAURANT NEWS A TRADE PAPER SAYS MR WEINSTEIN'S ZEAL IN ESCHEWING UNIFORMITY IS A SMART MOVE WHILE A CHAIN HAS LIMITED MARKET APPEAL THERE IS NO LIMIT TO WHAT MR WEINSTEIN CAN DO TO SATISFY THE MARKET HE SAYS ARK'S RESTAURANTS DO HAVE A FEW THINGS IN COMMON MANY ARE BIG AND OPEN AND NOISY THEY TEND TO HAVE A HOMEY FEELING WITH BRICK WALLS THICK WOODEN TABLES OR LOTS OF ARTWORK THEIR MENUS OFFER A WIDE RANGE OF FOOD FROM BASIC TO GOURMET AND THEY ARE LOCATED ON MAJOR URBAN THOROUGHFARES BUT IT IS THEIR DIFFERENCES THAT STAND OUT THE NONCHAIN FORMAT GIVES ARK THE FLEXIBILITY TO BUY INDEPENDENT ESTABLISHMENTS AND AVOIDS TYING THE COMPANY TO A SINGLE TRENDY CONCEPT IT ALSO PREVENTS TROUBLE AT ANY ONE LOCATION FROM SPILLING OVER TO OTHERS IF THERE'S A DISASTER A SHOOTING WHATEVER IT'S CONFINED TO ONE RESTAURANT MR WEINSTEIN SAYS AT THE SAME TIME THE CENTRALIZED CONTROL ARK OWNS 20 OF ITS RESTAURANTS AND MANAGES THE OTHERS GIVES THE COMPANY NEGOTIATING CLOUT ARK USES A COMPUTERIZED SYSTEM TO BUY QUANTITIES OF 3000 DIFFERENT FOOD AND BEVERAGE ITEMS A WEEK PURVEYORS CAN REACH AS MANY AS 140000 CUSTOMERS IF YOU ARE A BEER COMPANY AND YOU'RE COMING TO NEW YORK YOU HAVE TO SEE US SAYS MR WEINSTEIN HE BARGAINS HARD WITH LANDLORDS TOO ARK DOESN'T GUARANTEE ANY OF ITS RESTAURANTS' LEASES AND IT OFTEN GETS LANDLORDS TO PUT UP A SIGNIFICANT PART OF THE IMPROVEMENT CAPITAL FOR A RESTAURANT MR WEINSTEIN ISN'T NEARLY SO HARDNOSED WITH HIS EMPLOYEES THOUGH MANAGERS ARE HOMEGROWN AND HE SAYS WELLPAID MR WEINSTEIN KNOWS MANY WAITRESSES AND CHEFS BY NAME AND IN AN INDUSTRY OF HIGH TURNOVER SAYS THAT MANY EMPLOYEES HAVE STAYED ON FOR YEARS LONGTIME EMPLOYEES HAVE NO COMPUNCTION ABOUT APPROACHING HIM WITH IDEAS OR SUGGESTIONS ABOUT THE RESTAURANTS ARK OFFERS MEDICAL BENEFITS TO ANYONE WHO WORKS AT LEAST THREE SHIFTS A WEEK AND WILL GIVE ITS STAFFERS MANY OF WHOM ARE ARTISTS OR ACTORS TIME OFF FOR A THEATER ROLE WITH A GUARANTEED JOB BACK HE SAYS IN RETURN HE SAYS HE GETS A PRECIOUS COMMODITY EMPLOYEE LOYALTY AND WITH IT IN AN INDUSTRY PLAGUED BY PETTY THIEVERY EMPLOYEE HONESTY BIGNESS IS INCREASINGLY PART OF MR WEINSTEIN'S FORMULA FOR SUCCESS THE ENTREPRENEUR SAYS ARK RECENTLY HAS MOVED TOWARD MEGARESTAURANTS LOCATED IN HIGHTRAFFIC AREAS WHERE WE MUST DO BUSINESS BY VIRTUE OF THE LOCATION IN WASHINGTON DC SEQUOIA ALONG THE POTOMAC RIVER SEATS 1100 CUSTOMERS AND IN UNION STATION AMERICA AND ITS SATELLITE CENTER CAFE TOGETHER CAN HANDLE 700 A RESTAURANT THAT ARK IS BUILDING IN NEW YORK'S BRYANT PARK BEHIND THE MAIN LIBRARY WILL SEAT 850 INCLUDING TABLES OUTDOORS I'M NOT BUILDING RESTAURANTS THAT EARN 300000 A YEAR I'M LOOKING TO BUILD RESTAURANTS MAKING 1 OR 2 MILLION A YEAR MR WEINSTEIN SAYS ARK SAYS THAT WITHOUT RAISING PRICES ON MOST MENU ITEMS FOR THE PAST SIX YEARS IT HAS ENJOYED MORE THAN 20 GROWTH IN PROFIT IN ALL BUT ONE OF THE PAST FIVE IT RECENTLY REPORTED PROFIT FOR THE FISCAL YEAR ENDED OCT 2 ROSE 25 TO 19 MILLION OR 61 CENTS A SHARE WITH SALES INCREASING 12 TO 669 MILLION MR WEINSTEIN A ONETIME INVESTMENT BANKER WHOSE INITIAL 40000 INVESTMENT IN THE MUSEUM CAFE 18 YEARS AGO LAUNCHED THE ARK EMPIRE OWNS ABOUT 30 OF THE COMPANY HIS STAKE HAS A MARKET VALUE OF ABOUT 11 MILLION IT HASN'T ALL BEEN SMOOTH SAILING OF COURSE SOME RESTAURANTS HAVE GONE BELLY UP INCLUDING FOUR IN AN ILLFATED VENTURE INTO NEW JERSEY WE COMPLETELY MISREAD THE MARKET MR WEINSTEIN CONFESSES AND ARK ISN'T WITHOUT ITS DETRACTORS SOME CRITICS SAY IT PUTS TOO MUCH EMPHASIS ON DECOR AND NOT ENOUGH ON FOOD WITH THE EXCEPTION OF AN AMERICAN PLACE ARK'S RESTAURANTS TEND TO BE PLACES WHERE FOOD IS THE PROP YOU WANT TO BE THERE AND THEREFORE YOU EAT SOMETHING SAYS MIMI SHERATON A FORMER FOOD CRITIC FOR THE NEW YORK TIMES AND TIME MAGAZINE ADDS SCOTT ALLMENDINGER EDITOR OF RESTAURANT BUSINESS MAGAZINE MR WEINSTEIN IS KNOWN MORE FOR HIS SUCCESS WITH THEMES AND CONCEPTS DECOR AND AMBIANCE THAN HE IS FOR STUNNING FOOD AND WHILE HUGE RESTAURANTS CAN BE CASH COWS SOME OBSERVERS WARN THAT THEY CAN BE RISKY VENTURES MEGARESTAURANTS SCARE ME I HATE TO BE IN A RESTAURANT THAT'S GOT 500 DINERS AND IS HALFEMPTY SAYS CHUCK FRANK A RESTAURANT CONSULTANT WHO RAN A MULTICONCEPT RESTAURANT GROUP CALLED SPECTRUM FOODS IN THE 1970S OTHERS WONDER ABOUT THE LOGISTICS OF GETTING HOT FOOD TO SO MANY PEOPLE AT ONCE BUT MR WEINSTEIN BRUSHES ASIDE SUCH DOUBTS AND CONCENTRATES ON GETTING EVEN BIGGER HE HAS PLANS FOR OPENING SEVERAL NEW RESTAURANTS AND IS EVEN MOVING INTO THE DISCOUNT TOUR AND TRAVEL BUSINESS WHICH SHOULD HELP STEER SOME TRAFFIC TO HIS RESTAURANTS ONE THING ABOUT THE ARK GROUP IS THEY'VE DONE A VERY PROFESSIONAL JOB SAYS TIM ZAGAT PUBLISHER OF ZAGAT'S RESTAURANT SURVEY THEY'VE HAD THEIR FAILURES BUT BY AND LARGE THEY DO THE JOB THAT SELLS 9312290003 931229 TUESDAY'S MARKETS STOCK INDEXES HIT NEW HIGHS BONDS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS EDGED UP TO THEIR SECONDCONSECUTIVE RECORD IN LACKLUSTER TRADING BOND PRICES WERE MIXED AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE INCHED UP 084 POINT TO A RECORD 379377 STANDARD & POOR'S 500STOCK INDEX ADDED 040 TO A RECORD 47094 AND THE NASDAQ COMPOSITE INDEX ROSE 350 TO 76456 ANTHONY O'BRYAN MARKET TECHNICIAN AT AG EDWARDS & SONS IN ST LOUIS SAID HE WAS PLEASANTLY SURPRISED BY THE MARKET'S PERFORMANCE IN THE WAKE OF MONDAY'S SHARP ADVANCE WE EXPECTED A MORE CORRECTIVE SESSION HE SAID BUT THIS IS A VERY POSITIVE PERFORMANCE COMING AFTER THAT BIG JUMP MONDAY MR O'BRYAN NOTED THAT ACCORDING TO DOW THEORY THE MARKET SIGNALED YESTERDAY THAT STOCK PRICES ARE HEADED HIGHER THE SIGNAL WAS A NEW HIGH IN THE DOW JONES TRANSPORTATION AVERAGE WHICH CLIMBED 514 POINTS TO 177561 THAT RECORD IN TANDEM WITH NEW HIGHS IN THE INDUSTRIAL AVERAGE IS A RECONFIRMATION OF THE BULL MARKET HE SAID STOCK PRICES ALSO WERE AIDED BY A RELATIVELY STEADY BOND MARKET DESPITE NEWS OF A SHARP JUMP IN CONSUMER CONFIDENCE IN DECEMBER MR O'BRYAN SAID WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 072 TO 11153 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 201 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1217 ISSUES ROSE AND 825 FELL BOND PRICES WERE MIXED THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST ABOUT 1/16 POINT TO YIELD 623 SHORTERTERM ISSUES ROSE MODESTLY THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16990 MARKS AND 11136 YEN COMPARED WITH 17013 MARKS AND 11145 YEN MONDAY 9312290001 931229 MARKETING SCOTCH MAKERS TELL YOUTH IT'S HIP TO BE OLDFASHIONED BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL SCOTCH WHISKY MAKERS ARE DESPERATELY SEEKING JAMES UPTON AND SEVERAL MILLION FOLKS LIKE HIM MR UPTON IS A 30YEAROLD MERRILL LYNCH ECONOMIST IN NEW YORK WITH LOTS OF BUYING POWER AND A THIRST FOR SOMETHING MORE SOPHISTICATED THAN A DRAFT BEER AT DAY'S END SCOTCH SEEMED THE NATURAL CHOICE I LIKE THE IDEA OF SCOTCH IT LOOKS GOOD IN A GLASS OVER ICE HE SAYS BUT MR UPTON COULD NOT ACQUIRE THE TASTE I MEAN THE STUFF JUST TASTES TERRIBLE HE SAYS FOR NOW HE'S STICKING TO PREMIUM BEER AND VINTAGE WINES JAMES UPTON REPRESENTS THE KIND OF YOUNG DRINKER SCOTCH DISTILLERS MUST ATTRACT IF THEY ARE TO SURVIVE THE US IS SCOTCH'S LARGEST MARKET BUT SCOTCH CONSUMPTION HAS DROPPED TO 10 MILLION CASES A YEAR FROM A HIGH OF 24 MILLION IN 1974 ACCORDING TO IMPACT INTERNATIONAL IN NEW YORK A TRADE GROUP ONLY 5 OF THE 25YEAROLDS TO 35YEAROLDS IN THE US WHO CONSUME ALCOHOL DRINK SCOTCH THE MAJORITY OF SCOTCH DRINKERS ARE OVER 50 WE HAVE TO BROADEN OUR HORIZONS AS TO WHO IS A POTENTIAL CUSTOMER SAYS IAN JESNICK A DIRECTOR OF RICHMOND TOWERS LTD THE LONDON PUBLICIST FOR BALLANTINE'S A POPULAR EUROPEAN SCOTCH TO WIN THE YOUTH MARKET DISTILLERS MUST CONVINCE YOUNGER DRINKERS SCOTCH IS NOT JUST THEIR FATHER'S WHISKEY AND THEY MUST SELL THEM ON THE DRINK'S DISTINCT TASTE SCOTCH MAKERS EARN 60 OF THEIR PROFITS BETWEEN THANKSGIVING AND NEW YEAR'S EVE BIGLABEL DISTILLERS ARE DISCOUNTING EXPLORING NEW MARKETING AVENUES AND SPENDING UNPRECEDENTED SUMS TO INCREASE SALES DURING THIS CRITICAL PERIOD SCOTCH MAKERS SAY IT IS STILL TOO EARLY TO SEE THE EFFECTS OF SOME OF THEIR INITIATIVES IN THE US HARDLIQUOR CONSUMPTION IN GENERAL IS DOWN ACCORDING TO AN ANALYSIS BY LEHMAN BROTHERS SECURITIES IN LONDON GIN RUM AND VODKA SALES HAVE DECLINED SINCE THE LATE 1970S THOUGH AT A SLOWER PACE THAN SCOTCH BOURBON IS SELLING LESS THAN HALF THE VOLUME IT DID 25 YEARS AGO THOUGH ITS 1992 SALES OUTPACED SCOTCH'S IN BRITAIN SCOTCH'S HOMELAND SCOTCH SALES PLUMMETED IN THE LATE 1970S JUST AS WINE SALES BEGAN TO SHOOT UP THE SAME STUDY SAYS AN ILLUSTRATION INSIDE THE STUDY SHOWS A DOUR MAN IN A KILT ANGRILY ASKING WILL THE LAST PERSON IN BRITAIN TO DRINK SCOTCH PLEASE WASH THE GLASS FOR GROWTH SPIRITS MAKERS AND SCOTCH DISTILLERS IN PARTICULAR ARE COUNTING ON EMERGING MARKETS SUCH AS LATIN AMERICA PARTS OF ASIA AND EASTERN EUROPEAN COUNTRIES BUT IN MATURE MARKETS GROWTH DEPENDS ON THE YOUNG IN OCTOBER DEWAR'S SCOTCH PART OF UNITED DISTILLERS A UNIT OF GUINNESS PLC THREW A PARTY FOR 2000 25YEAROLDS TO 40YEAROLDS IN NEW YORK'S CENTRAL PARK WITH THE HELP OF HIP SOCIALITE SUSANNE BARTSCH OVER THE PAST FEW MONTHS DEWAR'S HAS BEEN PASSING OUT FREE DRINKS IN 300 URBAN EAST COAST BARS THAT CATER TO YOUNG PROFESSIONALS BALLANTINE'S A LEADING BRAND IN EUROPE AGREED TO SPONSOR THE WORLD SNOWBOARDING CHAMPIONSHIP TO THE TUNE OF 25 MILLION ABOUT 37 MILLION AFTER MARKET RESEARCH SHOWED THE SPORT ATTRACTS MAINLY 18YEAROLDS TO 25YEAROLDS WE WANT YOUNG ADULTS TO BEGIN TO IDENTIFY WITH THE BRAND SAYS A SPOKESWOMAN FOR BALLANTINE'S WHICH IS MADE BY HIRAM WALKER A UNIT OF UKBASED ALLIEDLYONS PLC BALLANTINE'S ADS IN BRITAIN SHOW SOPHISTICATED YOUNG MEN AND WOMEN DRINKING SCOTCH AT OUTDOOR CAFES AROUND THE WORLD DEWAR'S AIMS EVEN MORE DIRECTLY AT WHAT USED TO BE CALLED YUPPIES IN ITS NEW AD CAMPAIGN A YOUNG MAN WRAPPED IN A TOWEL SHARES A BATHROOM WITH HIS WOMAN FRIEND THE CAPTION YOU FINALLY HAVE A REAL JOB A REAL PLACE AND A REAL GIRLFRIEND HOW ABOUT A REAL DRINK ANOTHER SHOWS A WHOLESOME YOUNG WOMAN ALSO WRAPPED IN A TOWEL ITS CAPTION YOU THOUGHT GIRLS WERE YUCKY ONCE TOO BUT NOT EVERY SCOTCH LABEL IS LIFTING A GLASS TO THE YOUNG JOHNNY WALKER A GUINNESS BRAND AND J&B A PRODUCT OF INTERNATIONAL DISTILLERS AND VINTNERS A UNIT OF UKBASED GRAND METROPOLITAN PLC BOTH RECENTLY DITCHED LIFESTYLE ADS AIMED AT THE YOUNG TO REFOCUS ON THE EXISTING LOYAL SCOTCH DRINKER J&B SAYS IT DOESN'T ENCOURAGE USING SCOTCH AS A COCKTAIL MIXER AS SOME BRANDS ARE DOING TO ATTRACT YOUNGER DRINKERS TO MAKE THEIR PRODUCT MORE PALATABLE CERTAIN SCOTCH MAKERS ARE ENCOURAGING BARTENDERS TO SUGGEST SCOTCH MIXED WITH A FLAVORED SODA IN SCOTLAND THEY DRINK IT THAT WAY IT'S NOT EXACTLY A NEW THING SAYS ANTHONY GREENER GUINNESS'S CHAIRMAN INDEED SCOTCH WITH GINGER ALE OR SEVENUP WHICH THE BRITISH CALL LEMONADE IS COMMON IN THE UK IN SPAIN GREECE AND VENEZUELA THE POPULARITY OF SCOTCH AND COCACOLA AMONG YOUNG PEOPLE IS BOOSTING OVERALL SCOTCH SALES BALLANTINE'S COMMISSIONED BUCHANAN BUCKY AITKEN OWNER OF THE WAYFARERS PUB IN LOCH LOMOND SCOTLAND TO DEVISE A DOZEN GOODTASTING SCOTCH COCKTAILS BALLANTINE'S PRINTED AND DISTRIBUTED THE DRINK RECIPES EACH OF WHICH IS DEDICATED TO A PARTICULAR COUNTRY THROUGHOUT BRITAIN AMERICA'S COCKTAIL IS THE GREEN PEACH SCOTCH PEACH LIQUEUR CURACAO ORANGE JUICE ICE AND A DASH OF EGG WHITE DISTILLERS ARE TOYING WITH OTHER MARKETING AVENUES CHRISTOPHER WICKHAM WHO ANALYZES THE BEVERAGE INDUSTRY FOR LEHMAN BROTHERS SAYS SPIRITS MANUFACTURERS IGNORE WOMEN A VAST UNTAPPED MARKET WITH INCREASING BUYING POWER GUINNESS'S MR GREENER CONTEMPLATES A CAMPAIGN THAT WOULD HIGHLIGHT THE HEALTH BENEFITS OF SPIRITS TAKEN IN MODERATION FOR YEARS GUINNESS MARKETED ITS FLAGSHIP DARK BEER TO NURSING MOTHERS THE ELDERLY AND INFIRM WITH THE SLOGAN GUINNESS IS GOOD FOR YOU THOUGH SUCH A CAMPAIGN LIKELY WOULD DRAW CONTROVERSY MR AITKEN THE SCOTTISH BARTENDER THINKS IT WOULD APPEAL TO TODAY'S MORE HEALTHCONSCIOUS CONSUMERS I KNOW OCTOGENARIANS WHO'VE TAKEN A DRINK OF WHISKEY AS LONG AS I'VE KNOWN THEM IT'S KEPT THEM GOING HE SAYS 9312290161 931119 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS PETER FISHBEIN THE LAWYER WHO TOOK THE MOST HEAT FOR THE SAVINGSANDLOAN CRISIS HAS BEEN VINDICATED BY AN ATTORNEYDISCIPLINE BOARD AFTER A LENGTHY INVESTIGATION IN A CONFIDENTIAL LETTER NEW YORK'S DISCIPLINE BOARD HAS INFORMED MR FISHBEIN THAT IT FINDS NO BASIS FOR CLAIMING HE VIOLATED ETHICAL RULES THE 59YEAROLD PARTNER AT KAYE SCHOLER FIERMAN HAYS & HANDLER AGREED LAST YEAR TO LIFELONG LIMITS ON HIS PRACTICE AND HIS FIRM PAID 41 MILLION RATHER THAN DEFEND FEDERAL REGULATORS' CHARGES OF WRONGDOING REGULATORS HAD TEMPORARILY FROZEN THE FIRM'S ASSETS AND THE FIRM SAID IT WAS FORCED TO SETTLE THE LETTER FROM NEW YORK'S DEPARTMENTAL DISCIPLINARY COMMITTEE TO MR FISHBEIN OBTAINED BY THE WALL STREET JOURNAL RAISES NEW QUESTIONS ABOUT WHETHER THE OFFICE OF THRIFT SUPERVISION ACTED UNFAIRLY IN ITS FAMOUS CASE AGAINST KAYE SCHOLER THE FOURPAGE LETTER DATED AUG 9 1993 TERMINATES A 16MONTH INVESTIGATION INTO MR FISHBEIN'S PROFESSIONAL CONDUCT WHILE HE REPRESENTED LINCOLN SAVINGS & LOAN ASSOCIATION FROM 1984 TO 1989 TYPICALLY THE COMMITTEE ACTS IN RESPONSE TO COMPLAINTS BY MEMBERS OF THE PUBLIC BUT IN THIS CASE MEMBERS SAY THE COMMITTEE TOOK THE UNUSUAL STEP OF INITIATING ITS OWN INQUIRY BECAUSE THE SIZE OF THE SETTLEMENT SUGGESTED MR FISHBEIN AND KAYE SCHOLER HAD SOMETHING TERRIBLE TO HIDE AFTER THE SETTLEMENT A FEW LAWYERS LEFT THE FIRM AND INDIVIDUAL PARTNERS WERE HIT WITH BILLS FOR THE FIRST INSTALLMENT OF THE 16 MILLION PAYMENT NOT COVERED BY THE FIRM'S INSURANCE MR FISHBEIN WHO CONTINUED TO PROTEST HIS INNOCENCE DIDN'T LOSE ANY LONGTIME LITIGATION CLIENTS COLLEAGUES SAY BUT THE ORDEAL TOOK ITS TOLL IT'S THE KIND OF STAIN THAT ONE WEARS ON ONE'S FOREHEAD FOREVER AND IT'S A TERRIBLE BURDEN FOR HIM ONE CLOSE ASSOCIATE SAYS HAL R LIEBERMAN THE COMMITTEE'S CHIEF COUNSEL SAYS HE READ NEWS ARTICLES ABOUT THE SETTLEMENT AND DECIDED TO HANDLE THE INVESTIGATION PERSONALLY AIDED BY AN EXPERT IN SECURITIES LAW I WAS PREPARED TO FOLLOW MY NOSE WHEREVER IT LED EVEN TO THE POINT OF BRINGING FORMAL CHARGES THAT COULD RESULT IN DISBARMENT MR LIEBERMAN SAYS COMMITTEE PROCEEDINGS THAT DON'T RESULT IN PUBLIC DISCIPLINE ARE PRIVILEGED BUT MR LIEBERMAN SAYS HE WAS ABLE TO SPEAK ABOUT THIS CASE BECAUSE MR FISHBEIN WAIVED HIS RIGHT TO CONFIDENTIALITY THE COMMITTEE LIMITED ITS INVESTIGATION TO THREE MATTERS THAT APPEARED TO BE THE MOST SERIOUS ALLEGATIONS AND ALSO AMONG THE MOST PROVABLE MR LIEBERMAN SAYS IT FOCUSED ON ALLEGATIONS THAT KAYE SCHOLER INTENTIONALLY MISLED REGULATORS AS TO THE REASONS FOR THE RESIGNATION OF LINCOLN'S AUDITORS IN 1986 THAT THE FIRM KNOWINGLY MISREPRESENTED THE STATUS OF CERTAIN LINCOLN INVESTMENTS BY USING DOCUMENTS ALLEGEDLY BACKDATED BY LINCOLN AND THAT MR FISHBEIN HAD KNOWINGLY PERMITTED A CLIENT TO COMMIT PERJURY IN A DEPOSITION AS SUGGESTED IN ONE MAGAZINE ARTICLE THE COMMITTEE WHICH HAS SUBPOENA POWER IN NEW YORK TOOK DEPOSITIONS OF CURRENT AND FORMER KAYE SCHOLER ATTORNEYS AND SPOKE WITH OFFICIALS AT THE OTS THE SECURITIES AND EXCHANGE COMMISSION AND FEDERAL PROSECUTORS ADDITIONALLY IT REVIEWED THOUSANDS OF PAGES OF DOCUMENTS PROVIDED BY THE OTS THE OTS TOLD ME THEY GAVE ME ACCESS TO EVERYTHING THEY HAD MR LIEBERMAN SAYS LAWYERDISCIPLINE OFFICIALS HAVE BEEN CRITICIZED FOR BEING SYMPATHETIC TO THE PRIVATE BAR AND THEY HAVE TAKEN STEPS TO BECOME MORE INDEPENDENT THE 45MEMBER DISCIPLINE COMMITTEE WITH AUTHORITY OVER THE MANHATTAN AREA IS APPOINTED BY THE INTERMEDIATE STATE APPELLATE COURT IN ADDITION TO PRIVATE LAWYERS IT CURRENTLY INCLUDES A FORMER STATE APPELLATE JUDGE A SURGEON A TEACHER A FORMER COMMISSIONER OF NEW YORK'S CONSUMER AFFAIRS DEPARTMENT AND A FORMER MANAGING EDITOR OF THE NEW YORKER MAGAZINE THE POPULAR THING FOR ME TO HAVE DONE WOULD HAVE BEEN TO BRING CHARGES MR LIEBERMAN SAYS IT PROBABLY WOULD HAVE BEEN EASIER AND BETTER FOR OUR PUBLIC IMAGE TO FILE CHARGES AND MAKE A BIG SPLASH BUT AT THE END OF THE DAY MY CONCLUSION WAS THAT THERE'S NOTHING HERE MR FISHBEIN DECLINED TO COMMENT ABOUT HIS EXONERATION BY THE COMMITTEE KAREN KATZMAN ANOTHER KAYE SCHOLER PARTNER CLEARED WITH AN IDENTICAL COMMITTEE LETTER IN CONNECTION WITH LINCOLN'S FAILURE ALSO DECLINED TO COMMENT WARREN STERN A LAWYER FOR MR FISHBEIN AT WACHTELL LIPTON ROSEN & KATZ SAID FROM THE START OF THIS MATTER PETER FISHBEIN WANTED TO FIGHT THE OTS'S CHARGES WHICH HE VIEWED AS WHOLLY UNJUSTIFIED IT IS GRATIFYING THAT AN INDEPENDENT BODY EXPERT IN PROFESSIONAL RESPONSIBILITY HAS FOUND THERE WAS NO BASIS TO CHARGES MADE BY THE OTS AN OTS SPOKESMAN SAYS THE AGENCY HASN'T SEEN THE COMMITTEE'S LETTER WE DON'T KNOW WHAT THEY BASED IT ON OR WHAT THEY CONSIDERED IN REACHING THEIR CONCLUSIONS HE SAYS THE KAYE SCHOLER CASE IS CLOSED THEY SETTLED AND WE'RE SATISIFIED WITH THE RESULT WE FOCUSED ON BANKING LAW AND THE COURT'S COMMITTEE APPARENTLY CONCENTRATED ON ETHICAL MATTERS AND THEY'RE NOT NECESSARILY ONE AND THE SAME HE SAYS BUT MR LIEBERMAN SAYS THE AGENCY'S CHARGES EVEN THOUGH THEY WERE BROUGHT UNDER BANKING STATUTES CLEARLY IMPLICATED ETHICAL CONDUCT THE ALLEGATIONS INVESTIGATED BY THE COMMITTEE IF TRUE WOULD HAVE AMOUNTED TO SERIOUS VIOLATIONS OF THE DISCIPLINARY RULES HE ADDS ANY CREDIBLE EVIDENCE THAT MR FISHBEIN HAD LIED AT ANY POINT WOULD HAVE SUFFICED TO BRING A CASE MR FISHBEIN'S OPPORTUNITIES FOR REDRESS APPEAR LIMITED WINNING A LAWSUIT AGAINST GOVERNMENT OFFICIALS FOR ALLEGED DEFAMATION IS NEXTTOIMPOSSIBLE GIVEN THEIR IMMUNITY AND SINCE MR FISHBEIN AND HIS FIRM CONSENTED TO THE PENALTIES IT WOULD BE VERY DIFFICULT FOR THE FIRM TO UNWIND THE SETTLEMENT LAWYERS SAY SEE RELATED LETTER LETTERS TO THE EDITOR KAYE SCHOLER BULLIED BY A POWERFUL OTS WSJ DEC 29 1993 9311190117 YY93 MM12 9312290163 931027 TEXAS JOURNAL VICTORIA'S SECRET MOVE AHEAD BY KEEPING CLOSE TO ITS ROOTS BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL VICTORIA IN MANY WAYS VICTORIA BANKSHARES INC EXEMPLIFIES THE MINDSET OF THE STATE'S FEW REMAINING PUBLICLY TRADED BANKS WHERE CHIEF EXECUTIVES KNOW THEIR INSTITUTIONS ARE THE FINAL LINK TO TEXAS' BANKING PAST DOING ITS BEST TO PRESERVE ITS INDEPENDENCE AS OUTOFSTATE GIANTS CONTINUE THEIR MARCH ACROSS TEXAS VICTORIA IS FORTIFYING ITS POSITION IN TINY BURGS SUCH AS RUNGE PORT LAVACA EDNA AND HALLETSVILLE WHERE VICTORIA IS CONTENT TO BE BANKER TO THE PLAIN FOLK THEY KNOW THEIR NICHE AND THEY PURSUE IT WELL SAYS STEPHEN Y SCURLOCK SENIOR VICE PRESIDENT AT THE TEXAS BANKERS ASSOCIATION INDEED VICTORIA WHICH STARTED UP 119 YEARS AGO IS PURSUING ITS NICHE WITH A VENGEANCE BULKING UP ON SMALLER BANKS IN SOUTH TEXAS SINCE 1989 VICTORIA HAS GOBBLED UP 11 INSTITUTIONS IN PLACES SUCH AS KARNES CITY ROCKPORT AND NEW BRAUNFELS INCREASING ITS ASSET BASE 50 TO ABOUT 18 BILLION JUST THIS YEAR VICTORIA SWALLOWED THE BRYAN/COLLEGE STATION BANKS OF FAILED FIRST CITY BANCORP OF TEXAS ADDING 281 MILLION IN CORE DEPOSITS AND VICTORIA STILL IS ON THE PROWL IN JUNE THE COMPANY RAISED ROUGHLY 18 MILLION IN A SECONDARY STOCK OFFERING THAT WILL BUILD A WAR CHEST TO NAB FAILED BANKS AS CONSOLIDATION CONTINUES IN TEXAS SAYS CHARLES R HRDLICKA CHAIRMAN AND CHIEF EXECUTIVE HE WON'T COMMENT ON POSSIBLE PURCHASES BUT NOTES THE BANK SEEKS MARKETS WHERE IT CAN BE THE DOMINANT PLAYER WHERE WE FEEL WE CAN CONTINUE OUR MISSION AS A COMMUNITY BANKER WHERE CUSTOMERS KNOW THEIR BRANCH MANAGER BECAUSE HE'S AT THE FOOTBALL GAMES ON FRIDAY NIGHT AND AT CHURCH WITH THEM ON SUNDAY OF THE 28 COMMUNITIES IN WHICH VICTORIA CURRENTLY OPERATES IT RANKS FIRST IN MARKET SHARE IN 15 AND SECOND IN NINE ON AVERAGE VICTORIA BANKS SERVE ABOUT 40 OF A TOWN'S CUSTOMERS BUT SEVERAL OF ITS 34 BRANCHES COMMAND 100 OF THE MARKET THEY ARE THE ONLY GAME IN TOWN IN THE PAST THIS BANKING COMPANY HAS BEEN OVERLOOKED AS IT WENT ABOUT ITS BUSINESS IN VICTORIA POPULATION 56000 BUT THAT IS CHANGING VICTORIA HAS STEPPED INTO THE EDGES OF THE LIMELIGHT A FEW YEARS AGO ITS STOCK TRADED FOR AS LOW AS 550 A SHARE THIS WEEK IT SOLD FOR 2850 THE RECENT SECONDARY OFFERING'S ROADSHOW SPURRED SO MUCH INTEREST THAT THE UNDERWRITERS PROFFERED 60000 SHARES MORE AND STILL THE OFFERING WAS OVERSUBSCRIBED MOREOVER THE REGION VICTORIA CALLS HOME BOASTS SOME OF THE STATE'S LOWEST UNEMPLOYMENT RATES AND IS ATTRACTING RAPID GROWTH IN RETAILING AND HEALTH CARE OF COURSE LIKE THE REST OF TEXAS BANKING VICTORIA'S PAST IS POCKMARKED BY THE TROUBLES IN THE OIL PATCH DURING THE WORST OF THE DOLDRUMS 1986 VICTORIA RECORDED PRETAX LOSSES EXCEEDING 17 MILLION AND SUSPENDED DIVIDENDS BY 1988 NONPERFORMING ASSETS AND NET CHARGEOFFS FOR LOANS EXPECTED TO SOUR LED TO A PRETAX LOSS JUST SHY OF 10 MILLION MY WORRIES BACK THEN LET ME GET OUT THE LAUNDRY LIST SAYS MR HRDLICKA WHO CAME TO VICTORIA AS BANK CHAIRMAN IN 1986 AFTER A STINT AS BANK PRESIDENT IN THE SAN ANTONIO OFFICE OF DALLAS' DEFUNCT INTERFIRST CORP BUT EVEN DURING BANKING'S DARKEST MOMENTS VICTORIA'S CAPITAL NEVER DROPPED BELOW 682 OF ITS TOTAL ASSETS CONSIDERED VERY HEALTHY LAST YEAR THE COMPANY REINSTATED DIVIDENDS VICTORIA CURRENTLY POSSESSES MORE THAN 820 MILLION IN INVESTMENTS 85 OF WHICH ARE IN GOVERNMENT OR GOVERNMENT AGENCY BONDS 11 IN CORPORATE NOTES RATED AA OR BETTER MR HRDLICKA SAYS HE WOULD LIKE TO RAISE VICTORIA'S LOANTODEPOSIT RATIO WHICH IS LESS THAN 30 COMPARED WITH AN INDUSTRY AVERAGE OF OVER 60 BUT IT ISN'T EASY IT'S ALL A REFLECTION OF THE COMMUNITIES WE DO BUSINESS IN HE SAYS PEOPLE IN THIS AREA TEND TO BE ACCUMULATORS AND SAVERS AS OPPOSED TO BORROWERS AND SPENDERS 9312290137 931013 TEXAS JOURNAL TAXBREAK MEASURE LINKS DIVERSE GROUPS INTENT ON CLEANING UP AT THE VOTING BOOTH BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL TEXAS VOTERS ARE ABOUT TO GET BLITZED IN A SLEEPY OFFYEAR ELECTION SEASON AN UNLIKELY COALITION OF BUSINESS ORGANIZED LABOR AND ENVIRONMENTAL GROUPS IS LOUDLY DRUMMING UP SUPPORT FOR PASSAGE OF PROPOSITION 2 A CONSTITUTIONAL AMENDMENT THAT WOULD GIVE TAX BREAKS FOR POLLUTIONCONTROL EQUIPMENT INDUSTRY GROUPS HAVE FORMED A GRASSROOTS ORGANIZATION TO WOO VOTERS AND A POLITICAL ACTION COMMITTEE TO RAISE MONEY FOR TELEVISION AND RADIO SPOTS THE TEXAS AFLCIO IS GETTING OUT THE WORD TO ITS 400000 MEMBERS AND TOP STATE ENVIRONMENTAL AND ECONOMICDEVELOPMENT OFFICIALS HAVE APPEARED IN A 15MINUTE PROMOTIONAL VIDEO ON THE MEASURE IRONICALLY ALL OF THIS HUSTLING TAKES PLACE AGAINST A BACKDROP OF ABSOLUTELY NO ORGANIZED OPPOSITION BUT BACKERS ARE STILL TERRIFIED THE PROPOSED AMENDMENT MIGHT GO DOWN IN DEFEAT THE OLD AXIOM IS TO VOTE NO' ON SOMETHING YOU DON'T KNOW ABOUT SAYS MONTE JANSSEN SPOKESMAN FOR THE TEXAS CHEMICAL COUNCIL WHICH IS ENDORSING THE MEASURE ADDS BILL ALLAWAY OF THE TEXAS ASSOCIATION OF TAXPAYERS A BUSINESS GROUP PEOPLE ARE RELUCTANT TO GIVE TAX BREAKS TO BUSINESS PROPOSITION 2 ONE OF 16 ON THE NOV 2 BALLOT WOULD GUARANTEE THAT A COMPANY THAT INSTALLS POLLUTIONCONTROL EQUIPMENT TO REDUCE A PLANT'S AIR AND WATER EMISSIONS WON'T HAVE TO PAY PROPERTY TAX ON THE VALUE OF THE EQUIPMENT THE EXEMPTION WOULD APPLY ONLY TO LAND AND EQUIPMENT PURCHASED AFTER JAN 1 1994 THE MEASURE SIMILAR TO ONES IN 33 OTHER STATES IS ESPECIALLY VITAL FOR MANUFACTURERS REFINERS AND PETROCHEMICAL COMPANIES WHICH COMPLAIN THEY ALREADY BEAR THE BRUNT OF A TAX SYSTEM THAT RELIES FAR TOO HEAVILY ON LOCAL PROPERTY TAXES COMPANIES ARE PULLING NO PUNCHES IN THEIR PREDICTIONS ABOUT WHAT WOULD HAPPEN IF THE PROPOSITION IS REJECTED WITHOUT THE RELIEF MANY COMPANIES SAY THEY WON'T BE ABLE TO AFFORD TO MAKE THE INVESTMENT IN THEIR TEXAS FACILITIES NEEDED TO COMPLY WITH INCREASINGLY STRINGENT FEDERAL AND STATE ENVIRONMENTAL REGULATIONS THEY WARN THEY MAY BE FORCED TO PULL UP STAKES AND MOVE TO STATES WITH FRIENDLIER TAX SYSTEMS OR TO COUNTRIES WITH FRIENDLIER ENVIRONMENTAL RULES SMALLER BUSINESSES ALSO ARE PUSHING THE BENEFITS OF THE PROPOSITION BOB DAVIS OWNER OF HOME STEAM LAUNDRY & CLEANERS INC IN AUSTIN FIGURES HE WILL HAVE TO SPEND UP TO 150000 TO REPLACE HIS EXISTING ABSORBERS AND RECLAIMERS USED TO RECYCLE PERCHLORETHYLENE A SOLVENT USED IN DRY CLEANING WITH A SINGLE UNIT THAT CLEANS AND RECYCLES IN ONE OPERATION IF THE AMENDMENT PASSES THE TAX BREAK WILL ENABLE HIM TO PURCHASE THE MACHINE AND REDUCE THE SHOP'S EMISSIONS EVEN BEFORE HE IS FORCED TO COMPLY WITH FEDERAL REGULATIONS OTHERWISE MR DAVIS SAYS I WOULD ABSOLUTELY HAVE TO DELAY IT FOR AS LONG AS LEGALLY POSSIBLE EVEN THOUGH NO GROUP IS ACTIVELY FIGHTING THE PROPOSAL THERE IS PLENTY OF GRUMBLING BY SCHOOL BOARDS AND COUNTIES THAT FEAR IT WOULD MEAN THE LOSS OF MILLIONS OF DOLLARS IN FUTURE TAX REVENUE HARRIS COUNTY APPRAISERS ESTIMATE THAT PROPOSITION 2 WOULD REMOVE ABOUT 28 BILLION FROM ITS PROPERTYTAX BASE OR ROUGHLY A QUARTER OF THE ADDITIONS TO THE TAX BASE OVER THE NEXT FIVE YEARS FROM NEW INDUSTRIAL CONSTRUCTION JEFFERSON COUNTY HOME TO SOME OF THE BIGGEST REFINERIES IN THE NATION FIGURES IT WOULD LOSE ABOUT 24 MILLION A YEAR IN TAX REVENUE SUPPORTERS OF THE AMENDMENT CALL THE TAXLOSS NUMBERS GROSSLY INFLATED THEY SAY THAT IF THE HARRIS COUNTY ESTIMATES WERE CORRECT POLLUTIONCONTROL EQUIPMENT WOULD HAVE ACCOUNTED FOR NEARLY 5 OF THE 60 BILLION IN COMMERCIAL PROPERTY SHOPPING MALLS INDUSTRIAL PROPERTY AND UTILITY LINES IN THE COUNTY IN 1991 THE NUMBER IS PURE FABRICATION ACCORDING TO A FACT SHEET PREPARED BY THE CLEAN TEXAS COALITION THE INDUSTRY GROUP THAT IS PUSHING PASSAGE OF PROPOSITION 2 TEXAS ALREADY OFFERS PLENTY OF PROPERTYTAX EXEMPTIONS 13 TO BE EXACT BUT ONLY THREE ARE AVAILABLE TO BUSINESS VOTERS HAVE APPROVED TAX BREAKS FOR HOMESTEAD OWNERS THE ELDERLY DISABLED VETERANS AND CHARITABLE ORGANIZATIONS BUT IN 1987 VOTERS REJECTED AN AMENDMENT TO GRANT BUSINESS AN EXEMPTION FOR GOODS IN TRANSIT THROUGH THE STATE IT ONLY PASSED AFTER AN AGGRESSIVE CAMPAIGN BY BUSINESS GROUPS TWO YEARS LATER THIS TIME INDUSTRY GROUPS ARE PLAYING IT SAFE THEY HAVE FORMED THE CLEAN TEXAS COALITION TO GENERATE SUPPORT ITS POLITICAL ACTION COMMITTEE EXPECTS TO RAISE ABOUT 400000 THE COALITION IS PLANNING TELEVISION AND RADIO SPOTS IN DALLASFORT WORTH AND HOUSTON WHILE HITTING SMALLER CITIES WITH DIRECT MAIL AND MEMBERPURCHASED NEWSPAPER ADS THE CHEMICAL COUNCIL IS MAILING MORE THAN 100000 BROCHURES VIDEOS AND VOTERINFORMATION CARDS THE CAMPAIGN CLEARLY IS DESIGNED TO WIN SUPPORT IT STRESSES THE AMENDMENT'S ENVIRONMENTAL AND ECONOMIC DEVELOPMENT BENEFITS DOWNPLAYING THE FINANCIAL BENEFITS TO THE AFFECTED COMPANIES AND IT PLAYS UP THE ADVANTAGES TO SMALL BUSINESSES EVEN THE PROPOSITION WAS DRAFTED TO CONVINCE UNCERTAIN VOTERS THE CONSTITUTIONAL AMENDMENT TO PROMOTE THE REDUCTION OF POLLUTION AND TO ENCOURAGE THE PRESERVATION OF JOBS LABOR AND ENVIRONMENTAL ORGANIZATIONS MEANWHILE SUPPORT THE MEASURE ALTHOUGH WITH A BIT LESS ENTHUSIASM AS EMMETT SHEPPARD THE SECRETARYTREASURER OF THE TEXAS CHAPTER OF THE AFLCIO SAYS I DON'T KNOW IF THIS COSTS ANY JOBS IF IT DOESN'T PASS IT JUST PUTS US ON A LEVEL PLAYING FIELD WITH OTHER STATES CONSTITUTIONAL AMENDMENTS OF INTEREST TO BUSINESS ON NOV 2 BALLOT PROP 1 AUTHORIZES THE STATE TO ISSUE 50 MILLION IN GENERALOBLIGATION BONDS TO FINANCE STARTUP COSTS FOR MINORITY AND WOMENOWNED BUSINESSES PROP 2 EXEMPTS POLLUTIONCONTROL EQUIPMENT FROM LOCAL PROPERTY TAXES PROP 4 PROHIBITS A STATE INCOME TAX WITHOUT THE APPROVAL OF VOTERS AND REQUIRES THAT IF AN INCOME TAX IS ENACTED THE REVENUE MUST BE DEDICATED TO EDUCATION AND BE USED TO LIMIT SCHOOL DISTRICT PROPERTY TAXES PROP 7 REPEALS THE CONSTITUTIONAL RESTRICTION ON A CORPORATION'S ABILITY TO ISSUE STOCKS OR BONDS EXCEPT FOR MONEY PAID WORK PERFORMED OR PROPERTY RECEIVED THE BAN ORIGINALLY WAS AIMED AT STOCK WATERING OR THE ISSUANCE OF STOCK FOR LESS THAN FULL PAYMENT PROP 9 REDUCES THE TIME BEFORE COMMERCIAL PROPERTY PURCHASED THROUGH A TAXFORECLOSURE SALE CAN BE RECLAIMED BY THE ORIGINAL OWNER TO SIX MONTHS FROM TWO YEARS PROP 14 AUTHORIZES THE ISSUANCE OF UP TO 1 BILLION IN GENERALOBLIGATION BONDS TO BUILD STATE JAILS FOR LESSVIOLENT OFFENDERS PROP 16 AUTHORIZES UP TO 100 MILLION IN BONDS FOR A STATE AGRICULTURAL FUND THAT PROVIDES LOAN GUARANTEES FOR THE PROCESSING MARKETING OR EXPORTING OF STATE FARM PRODUCTS 9312290134 931020 TEXAS JOURNAL ASK NOT WHERE HE'S GOING BUT WHERE HE NEVER WENT BY CALEB SOLOMON SO GOES ONE OF THE FAVORITE GUESSING GAMES ON WALL STREET WHAT HAPPENS TO THE COMPANY IF AND WHEN GEORGE MITCHELL ITS 74YEAROLD CHAIRMAN PRESIDENT AND 60 OWNER RELINQUISHES CONTROL MR MITCHELL WON'T SAY MUCH ABOUT THE FUTURE BUT HE WILL TALK A BIT ABOUT THE PAST ONE NUGGET HE TURNED DOWN A CHANCE TO SELL THE COMPANY OR AT LEAST A MAJOR STAKE IN IT TO FORMER CORPORATE RAIDER BOONE PICKENS IT WAS SEVERAL YEARS AGO WHEN HE WAS DOING MUCH BETTER SAYS MR MITCHELL WHO REMEMBERS THE PHONE CALL FROM MR PICKENS IN THE LATE 1980S HE SAYS THE INQUIRY WAS CORDIAL AS WAS HIS REJECTION MR PICKENS RECALLS THE TALKS AND SAYS THAT THEY NEVER GOT BEYOND A PHONE CALL OR TWO MR MITCHELL SAYS HE IS GLAD THAT HE DIDN'T GET INVOLVED WITH MR PICKENS WHO'S TRYING TO GET HIS OWN COMPANY MESA INC OUT OF A FINANCIAL DITCH AND THE FUTURE SPECULATION HAS FOCUSED ON KENT MITCHELL 40 YEARS OLD ONE OF THE SENIOR MITCHELL'S 12 CHILDREN ALTHOUGH THE YOUNGER MR MITCHELL IS ON MITCHELL ENERGY'S BOARD OF DIRECTORS HIS PRIMARY JOB IS DEVELOPING THE FAMILY'S BALD HEAD ISLAND NC RESORT NEAR MYRTLE BEACH THE YOUNGER MR MITCHELL TURNS AWAY A QUESTION ON SUCCESSION AT MITCHELL ENERGY THE FAMILY HAS BEEN TALKING ABOUT IT HE SAYS I'M THE MOST LIKELY ONE TO BE INVOLVED BUT NOT AS CHIEF EXECUTIVE OFFICER AS FOR RUMORS THAT MITCHELL ENERGY MIGHT EVENTUALLY BE BROKEN UP INTO SEPARATE ENERGY AND REALESTATE COMPANIES KENT MITCHELL SAYS YOU HAVE TO LOOK AT IT FROM AN INVESTOR POINT OF VIEW CONGLOMERATES ARE BEING BROKEN UP WHEN LIKE OURS THERE IS A NATURAL BREAK BETWEEN BUSINESSES 9312290130 931013 TEXAS JOURNAL ECONOMIC FOCUS HOUSTON AND OIL A TIE THAT CONTINUES TO BIND BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON YOU KNOW A CITY'S HAVING PROBLEMS WHEN EVEN THE CHAMBER OF COMMERCE NO LONGER WAXES POETIC ABOUT ITS ECONOMY WE'RE HAVING TROUBLE COMING UP WITH SYNONYMS FOR THE WORD FLAT' SAYS CA SKIP KASDORF III RESEARCH CHIEF OF THE GREATER HOUSTON PARTNERSHIP THE EQUIVALENT OF A CHAMBER HERE INDEED AFTER A HEROIC COMEBACK FROM THE 19821986 OILPATCH RECESSION HOUSTON NOT ONLY REPLACED ALL 212000 JOBS IT LOST BUT ADDED 50000 MORE BY 1991 THE BAYOU CITY HAS DONE LITTLE BETTER THAN TREAD WATER FOR THE PAST TWO YEARS TOTAL EMPLOYMENT HAS BARELY BUDGED CONSTRUCTION IS BECALMED AND THE DOWNTOWN OFFICEVACANCY RATE HAS HIT AN ALLTIME HIGH ECONOMISTS MEANWHILE ARE LOWERING THEIR 1993 PROJECTIONS FOR THE CITY COMING INTO THIS YEAR I THOUGHT HOUSTON WAS GOING TO BE DOING A LOT BETTER THAN IT IS SAYS BILL GILMER A SENIOR ECONOMIST AT THE FEDERAL RESERVE BANK OF DALLAS IT SEEMS LIKE HOUSTON CAN'T GET ITS DUCKS LINED UP OF COURSE HOUSTON'S WOES ARE RELATIVE AND ITS ECONOMY IS STILL DOING BETTER THAN MANY OTHER CITIES IN THE COUNTRY THE NATION'S FOURTHLARGEST CITY HOUSTON IS A FAVORED BUSINESSRELOCATION SITE THANKS TO ITS LOW COST OF LIVING AND ENTREPRENEURIAL CLIMATE IT STANDS AT A CROSSROADS OF WORLD TRADE AND ITS BUSINESSES ARE LEAN AND MEAN HAVING BEEN TOUGHENED BY THE MID'80S MELTDOWN NONETHELESS HOUSTON'S CURRENT TROUBLES ARE WORRISOME PARTICULARLY WHEN CONTRASTED WITH OTHER PARTS OF THE STATE YEAROVERYEAR NONFARM EMPLOYMENT GROWTH IS RUNNING AT ABOUT 05 COMPARED WITH 2 IN THE DALLAS AREA AND MORE THAN 3 IN SAN ANTONIO AND AUSTIN WHILE STATEWIDE HOUSING PERMITS ARE UP 15 IN THE FIRST SIX MONTHS OF 1993 COMPARED WITH THE SAME PERIOD LAST YEAR HOUSTON'S ARE DOWN 15 BECAUSE THE CITY REPRESENTS A FIFTH OF THE ENTIRE TEXAS ECONOMY ITS SLUGGISHNESS IS MAKING A WEAK STATE RECOVERY WEAKER BEYOND THAT HOUSTON'S PROBLEMS ARE RAISING SOME NEW QUESTIONS ABOUT JUST HOW SUCCESSFUL ITS DIVERSIFICATION EFFORT HAS BEEN IS IT JUST A COINCIDENCE THAT THE CITY'S ECONOMY APPEARS TO HAVE PLATEAUED JUST AS WORLD OIL PRICES TANKED MANY ECONOMISTS THINK NOT ALTHOUGH THE LINK IS A COMPLICATED ONE FOR ONE THING HOUSTON IS CLEARLY LESS DEPENDENT ON OIL AND GAS THAN IT USED TO BE FIGURES COMPILED BY THE UNIVERSITY OF HOUSTON'S CENTER FOR PUBLIC POLICY SHOW THAT UPSTREAM ENERGY JOBS THOSE INVOLVING OIL AND GAS EXPLORATION AND PRODUCTION OILFIELDEQUIPMENT MANUFACTURING AND PIPELINE TRANSPORTATION HAVE FALLEN TO ABOUT 41 OF THE CITY'S ECONOMIC BASE FROM ABOUT 68 IN 1981 THE ECONOMIC BASE IS THE PORTION OF A REGION'S ECONOMY THAT PRODUCES GOODS OR SERVICES SOLD TO OTHER REGIONS NONENERGY BUSINESSES INCLUDING ENGINEERING ACCOUNTING AND HEALTH CARE HAVE AVERAGED ABOUT 77 ANNUAL EMPLOYMENT GROWTH DURING THE PAST DECADE REPRESENTING THREEFOURTHS OF NET JOB GROWTH IN THE ECONOMIC BASE BETWEEN 1989 AND 1992 BUT HOUSTON'S FATE IS STILL LINKED TO PETROLEUM AND MORE SO THAN ANY OTHER MAJOR CITY HOUSTON IS WAY OFF IN A LEAGUE OF ITS OWN IN TERMS OF ITS CONCENTRATION IN THE ENERGY BUSINESS SAYS THE FED'S MR GILMER TO MAKE THINGS WORSE SOME OF HOUSTON'S BESTLAID PLANS TO ESCAPE THE GRIP OF OIL AND GAS HAVE RUN INTO DIFFICULTIES LATELY FOR EXAMPLE MULTIBILLIONDOLLAR INVESTMENTS IN NEW REFINERIES AND PETROCHEMICAL PLANTS HELPED RESCUE THE GULF COAST REGION IN THE LATE 1980S AS MAJOR OIL COMPANIES MOVED TO TAKE ADVANTAGE OF CHEAP OIL AND NATURALGAS LIQUIDS THE MAIN RAW MATERIALS AND BOOMING DEMAND FROM A HEALTHY WORLD ECONOMY BUT THE WORLDWIDE RECESSION HAS SINCE SOURED DEMAND FOR PLASTICS AND OTHER PRODUCTS LEADING TO PLUNGING PRICES AND HIRING SLOWDOWNS AT THE SAME TIME SOME OTHER DIVERSIFICATION EFFORTS MA WINDS IN WASHINGTON THE JOHNSON SPACE CENTER HAS BEEN UNDER THE BUDGET GUN THE RESULT OF THREATENED CUTBACKS IN THE SPACE STATION PROJECT EVEN WORSE SOME ECONOMISTS FEAR THAT PRESIDENT CLINTON'S HEALTHCARE REFORM WILL UNDERMINE HOUSTON'S THRIVING MEDICAL BUSINESS IN PARTICULAR THEY WORRY ABOUT THE TEXAS MEDICAL CENTER A GROUPING OF ABOUT A DOZEN ELITE HOSPITALS WITH A COMBINED OPERATING BUDGET OF 43 BILLION THE MEDICAL CENTER HAS CREATED BETWEEN 200 AND 300 NEW JOBS A MONTH OVER THE PAST 12 YEARS GROWING TO 54774 AT LAST COUNT RICHARD WAINERDI PRESIDENT THINKS THE MEDICAL CENTER WILL CONTINUE TO PROSPER PARTLY BECAUSE OF ITS STRONG BASE OF PATIENTS FROM LATIN AMERICA BUT HE CONCEDES THAT YOU CAN'T SUSTAIN THE GROWTH RATE OF THE PAST 9312290125 931020 TEXAS JOURNAL DEVICES ADD A DIMENSION TO OIL SEARCH BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL MIDLAND FOR COMPANIES THAT HELP OIL PRODUCERS PEER BENEATH THE EARTH'S SURFACE A LONG SLUMP IS ENDING THE REASON SOCALLED 3D SEISMIC TECHNOLOGY A NEWER MORE ACCURATE METHOD OF PRODUCING PICTURES OF THE EARTH'S SUBSURFACE BY SENDING SOUND WAVES INTO THE GROUND AND RECORDING HOW LONG THEY TAKE TO BOUNCE OFF ROCK FORMATIONS AND RETURN TO THE SURFACE UNTIL RECENTLY IT WAS USED MAINLY BY MAJOR OIL COMPANIES TO AVOID THE HIGH COST OF DRY HOLES OFFSHORE IN THE PAST FEW YEARS HOWEVER ADVANCES IN COMPUTERS THAT PROCESS THE REAMS OF DATA FROM 3D SURVEYS HAVE MADE THE TECHNOLOGY AFFORDABLE FOR INDEPENDENT PRODUCERS AND FEASIBLE FOR USE ON LAND AS WELL AS AT SEA YOU COULD DESCRIBE IT AS BOOM CONDITIONS RIGHT NOW PARTICULARLY IN WEST TEXAS FOR PROVIDERS OF 3D SEISMIC DATA SAYS MICHAEL HARRIS AN ANALYST WITH THE BROKERAGE FIRM MORGAN KEEGAN & CO IN MEMPHIS TENN AND WE EXPECT IT WILL SPREAD TO OTHER AREAS IN THE US MR HARRIS SAYS THE SEISMIC INDUSTRY'S REVENUE NEARLY DOUBLED TO ABOUT 3 BILLION LAST YEAR FROM 18 BILLION IN 1989 WITH 3D BUSINESS ACCOUNTING FOR MOST OF THE GAIN WEST TEXAS IS WELL SUITED TO 3D SURVEYS PARTLY BECAUSE SOME GEOLOGICAL FEATURES THERE ESPECIALLY ANCIENT REEFS THAT SOMETIMES TRAP OIL SHOW UP MUCH MORE CLEARLY IN 3D THAN IN A CRUDER CHEAPER FORM OF THE TECHNOLOGY CALLED 2D SEISMIC THE NUMBER OF 3D SEISMIC CREWS WORKING IN THE PERMIAN BASIN WHICH INCLUDES PARTS OF TEXAS AND NEW MEXICO HAS JUMPED TO ABOUT 20 FROM NO MORE THAN FIVE EARLY LAST YEAR ACCORDING TO L DECKER DAWSON PRESIDENT OF DAWSON GEOPHYSICAL CO A MIDLAND PROVIDER OF SEISMIC DATA AFTER LOSSES IN SIX STRAIGHT FISCAL YEARS THROUGH SEPTEMBER 1990 DAWSON EARNED 11 MILLION IN FISCAL 1992 AND 22 MILLION IN THE NINE MONTHS ENDED IN JUNE INCLUDING A ONETIME 669000 GAIN IN FARFLUNG SEARCHES FOR OIL PRODUCERS LONG RELIED ON 2D SEISMIC SURVEYS THEY TURNED TO 3D SURVEYS IF AT ALL ONLY AFTER DRILLING A DISCOVERY WELL TO PLOT FURTHER DEVELOPMENT IN THE VICINITY NOW AS 3D TECHNOLOGY GROWS MORE AFFORDABLE WE'RE STARTING TO SEE IT USED AS AN EXPLORATION TOOL SAYS CHARLIE YANEZ WHO SUPERVISES SOUTH TEXAS OPERATIONS FOR WESTERN ATLAS INTERNATIONAL A HOUSTONBASED GEOPHYSICAL UNIT OF LITTON INDUSTRIES INC BEVERLY HILLS CALIF OIL PRODUCERS ARE REALIZING IT'S CHEAPER TO DO A 3D THAN SHOOT LOTS OF DRY HOLES AFTER A 2D SURVEY PRODUCERS ALSO ARE RESHOOTING AREAS PREVIOUSLY DONE WITH 2D IN THE HOPES OF FINDING THINGS THEY MISSED THE FIRST TIME LITTON SAYS IT IS BENEFITING FROM THE TREND BUT WON'T BE SPECIFIC THE 3D TECHNOLOGY ISN'T CLEARLY BETTER IN EVERY CASE SURVEYS IN 2D CAN BE NEARLY AS GOOD FOR SOME SIMPLE ROCK FORMATIONS SAYS MANIK TALWANI A GEOPHYSICIST WHO HEADS THE GEOTECHNOLOGY RESEARCH INSTITUTE AT THE HOUSTON ADVANCED RESEARCH CENTER A NONPROFIT GROUP IN THE WOODLANDS AND THE HIGHER COST OF 3D SURVEYS UP TO SEVERAL HUNDRED TIMES MORE THAN 2D CAN STILL BE A DETERRENT A YEAR AGO TIM PARKER EXPLORATION MANAGER AT SANTA FE ENERGY RESOURCES INC'S CENTRAL DIVISION WASN'T SURE THE TECHNOLOGY WAS WORTH THE EXPENSE BUT OTHER PRODUCERS' SUCCESS IN DRILLING LONGLASTING WELLS BASED ON 3D DATA SOON ERASED HIS DOUBTS THIS SUMMER SANTA FE BASED IN HOUSTON HELPED TO COMMISSION A 425 MILLION SHOOT ON 250 SQUARE MILES OUTSIDE OF MIDLAND ONE OF THE LARGEST ONSHORE 3D SEISMIC SURVEYS EVER DONE IN THE US 9312290075 931020 TEXAS JOURNAL ECONOMIC FOCUS NAFTA WOULD HELP TEXAS BUT DON'T TELL ANYONE BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL EVEN AS THEY CHARGE INTO BATTLE TO RESCUE THE BELEAGUERED NORTH AMERICAN FREE TRADE AGREEMENT TEXAS BUSINESS LEADERS ARE TRYING TO DEFLECT ATTENTION FROM THEMSELVES AND THEIR STATE THE REASON THEY'RE WORRIED OPPONENTS WILL FOCUS ON THE DISPROPORTIONATE BENEFITS TEXAS WOULD RECEIVE MAKING THE PACT LOOK TOO MUCH LIKE A LONE STAR WINDFALL WE HAVE TO BE CAREFUL BECAUSE THE NUMBERS ARE SO OVERWHELMINGLY IN FAVOR OF TEXAS SAYS ALFONSO MARTINEZFONTS JR CHAIRMAN OF THE GREATER SAN ANTONIO CHAMBER OF COMMERCE WHO HAS PARTICIPATED IN TWO LOBBYING TRIPS TO WASHINGTON SO FAR THIS YEAR AND MAY SQUEEZE IN ANOTHER BEFORE THE PLANNED NOV 17 VOTE IN THE HOUSE OF REPRESENTATIVES INDEED THERE ARE PLENTY OF REASONS TO BELIEVE THAT TEXAS WOULD GAIN MORE THAN ANY OTHER STATE IF CANADA THE US AND MEXICO MERGE INTO A GIANT FREETRADE ZONE US COMMERCE DEPARTMENT FIGURES SHOW THAT TEXAS EXPORTED 1739 BILLION OF GOODS TO MEXICO LAST YEAR 43 OF THE US TOTAL AND NEARLY THREE TIMES THE EXPORTS OF THE NO 2 STATE CALIFORNIA BY FORCING MEXICO TO LOWER ITS TARIFFS NAFTA WOULD LIKELY INCREASE EXPORTS AND WIDEN THIS GAP AT THE SAME TIME THE NAFTA DEBATE HAS RAISED NATIONAL AWARENESS ABOUT THE DEPLORABLE SOCIOECONOMIC AND ENVIRONMENTAL CONDITIONS ALONG THE USMEXICO BORDER PROMPTING BOTH GOVERNMENTS TO PLEDGE BILLIONS OF DOLLARS TOWARD A CLEANUP AND WHO WITH THE LONGEST BORDER WITH MEXICO STANDS TO GAIN THE MOST FROM THIS CLEANUP ONE GUESS BUT IN THEIR LOBBYING EFFORT TEXAS BUSINESS GROUPS ARE GOING OUT OF THEIR WAY TO TALK ABOUT ANYTHING BUT TEXAS THE GREATER HOUSTON PARTNERSHIP FOR EXAMPLE IS ORGANIZING A CAMPAIGN BY LOCALLY BASED FORTUNE 500 COMPANIES TO RALLY THEIR NONTEXAS SUBSIDIARIES AND VENDORS TO THE NAFTA CAUSE THE PLAN IS TO GET SAY A PLANT MANAGER IN MICHIGAN TO BEND THE EAR OF HIS OR HER REPRESENTATIVE WHILE ENCOURAGING EMPLOYEES TO WRITE LETTERS WE'RE NOT NECESSARILY LOOKING TO HAVE A HOUSTON MAILING ADDRESS SAYS AL HAINES A PARTNERSHIP EXECUTIVE WHO NOTES THAT THE NEW STRATEGY ENCOMPASSES 41 STATES IN SAN ANTONIO MR MARTINEZFONTS SAYS THAT WHEN HE TALKS TO OUTOFSTATE REPRESENTATIVES HE IS CAREFUL TO FOCUS ON THE RATE OF INCREASE OF NONTEXAS EXPORTS RATHER THAN ON ABSOLUTE LEVELS FOR INSTANCE HE NOTES THAT ILLINOIS EXPORTS TO MEXICO GREW NEARLY 25 BETWEEN 1991 AND 1992 TO 125 BILLION WHEN YOU LOOK AT THE PERCENTAGE GAINS IN THESE OTHER STATES OBVIOUSLY FROM A MUCH SMALLER BASE THE GAINS ARE TREMENDOUS MR MARTINEZFONTS SAYS SAN ANTONIO IS ALSO TRYING TO TREAD SOFTLY IN ITS LETTERWRITING CAMPAIGN LOCAL BUSINESSES HAVE GENERATED SOME 3000 MISSIVES TO CONGRESS IN RECENT DAYS BUT A HIGH PERCENTAGE ARE GOING TO REPRESENTATIVES OF SUNBELT STATES WHICH HAVE MORE IN COMMON WITH TEXAS THAN DO STATES IN THE NORTH BECAUSE SEVERAL OF DALLAS'S CONGRESSIONAL REPRESENTATIVES ARE UNDECIDED ABOUT NAFTA THE GREATER DALLAS CHAMBER IS LOBBYING CLOSER TO HOME PARTICULARLY BY ENCOURAGING ITS MEMBER COMPANIES TO PERSUADE EMPLOYEES TO CONTACT THEIR LOCAL REPRESENTATIVES BUT DALLAS IS BEING UNCHARACTERISTICALLY LOWKEY IN ITS EFFORTS TO BECOME THE HOST OF A PROPOSED NAFTA SECRETARIAT WHICH WOULD HOUSE THE BUREAUCRACY NEEDED TO IMPLEMENT THE PACT ALTHOUGH DALLAS IS TRYING TO GET SOMEBODY TO DONATE A BUILDING FOR THE NAFTA OFFICES THE CITY HASN'T YET FORMALLY APPLIED TO BE THE NAFTA CAPITAL WE DON'T WANT AN UNSOLICITED PROPOSAL TO BE USED AS A CLARION CALL FOR THE OPPOSITION SAYS DAVID DEAN A DALLAS ATTORNEY WHO HEADS THE CHAMBER'S NAFTA EFFORTS WE DON'T WANT A POLITICAL DISPUTE OVER WHERE THE SECRETARIAT IS LOCATED IN ANY WAY TO CLOUD THE ISSUE OF WHY NAFTA IS GOOD FOR THE WHOLE UNITED STATES WHO'S AT THE CROSSROADS WITHIN TEXAS BORDERS JUST ABOUT EVERY MAJOR CITY IS CLAMORING TO BE KNOWN AS THE CROSSROADS TO MEXICO HOUSTON TOUTS ITS PORT AND ABUNDANCE OF INTERNATIONAL CONSULATES SAN ANTONIO HIGHLIGHTS ITS CULTURAL AFFINITY AND POSITION ASTRIDE THE MAIN LAND ROUTE TO MEXICO DALLAS AND FORT WORTH HAVE THE BIGGEST AIRPORT AS WELL AS A GIANT TELECOMMUNICATIONS AND ELECTRONICS MANUFACTURING BASE THAT STANDS TO BENEFIT FROM GREATER TRADE AND AUSTIN I GUESS WE'D LIKE TO BE KNOWN AS THE QUIET PLAYER IN THIS ARENA SAYS ANGELOS ANGELOU HEAD OF ECONOMIC DEVELOPMENT FOR THE GREATER AUSTIN CHAMBER OF COMMERCE SO FAR THE STRATEGY SEEMS TO BE PAYING OFF AT LEAST IN PUBLIC RELATIONS NEXT MONDAY AUSTIN WILL HOST A MEETING OF THE MEXICAN CHAMBER OF COMMERCE AND THE EIGHT BIGGEST CHAMBERS IN TEXAS TO SIGN A MANIFESTO SUPPORTING NAFTA HOW DID AUSTIN WIN SUCH A PRIZE DALLAS WANTED TO HAVE IT AND SAN ANTONIO WANTED TO HAVE IT SAYS MR ANGELOU THEY FINALLY DECIDED TO HAVE IT IN AUSTIN ON NEUTRAL GROUND DON'T BANK ON BENEFITS TEXAS BANKS ALONG THE USMEXICO BORDER SEEM LIKELY BENEFICIARIES OF NAFTA WHICH WOULD ALLOW US FIRMS TO ESTABLISH BANKS IN MEXICO AFTER ALL BORDER BANKS KNOW MORE ABOUT THE MEXICAN RETAILBANKING MARKET THAN DO MONEYCENTER BANKS THEY ALREADY SERVE LOTS OF MEXICAN CUSTOMERS WHO IN TIMES OF CRISIS STASH THEIR MONEY IN THE US FOR SAFEKEEPING BUT A STUDY BY THE FEDERAL RESERVE BANK OF DALLAS SUGGESTS THAT MEXICAN CAPITAL REQUIREMENTS WILL MAKE IT TOUGH FOR BORDER BANKS TO ESTABLISH OPERATIONS IN THE INTERIOR OF MEXICO THE COUNTRY REQUIRES THAT ITS BANKS HAVE AT LEAST 20 MILLION IN CAPITAL THE FED SAYS AND IT'S LIKELY THAT MEXICO WOULD ENCOURAGE EVEN HIGHER CAPITAL LEVELS BUT ONLY 14 OF THE 48 BANKING ORGANIZATIONS OPERATING AT LEAST ONE BANK IN TEXAS COUNTIES ALONG THE MEXICAN BORDER HAD 20 MILLION IN CAPITAL AT THE END OF 1992 THE FED REPORTS THUS TO OPEN SHOP IN MEXICO MOST BANKS WOULD HAVE TO RAISE A LOT OF EXTERNAL CAPITAL A TALL ORDER THESE DAYS THE PRIMARY BENEFIT OF NAFTA FOR MOST OF THE BORDER BANKS WILL BE AN INDIRECT ONE RESULTING FROM AN INCREASE IN TRADE AND ECONOMIC ACTIVITY IN THE BORDER REGION THE FED CONCLUDES 9312290053 931020 TEXAS JOURNAL HEARD IN TEXAS MANY BELIEVE US LONG DISTANCE RINGS TRUE AMID INDUSTRY LINKUPS BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL WHAT'S THE BUZZ ON TELECOMMUNICATIONS STOCKS MANY ANALYSTS BELIEVE US LONG DISTANCE GIVES A STRONG SIGNAL IN THE PAST FEW YEARS THIS TELECOMMUNICATIONS AND INFORMATIONSERVICES CONCERN HAS RACKED UP EARNINGS AND SALES GAINS SOMEWHERE NEAR PHENOMENAL SAYS STEPHEN J SHOOK TELECOM ANALYST AT INTERSTATE/JOHNSON LANE AND IT'S POISED FOR CONTINUED EXCEPTIONAL GROWTH ON TOP OF ITS OWN GROWTH PROSPECTS USLD MAY BENEFIT FROM THE MERGER MANIA IN THE TELECOMMUNICATIONS AND CABLE INDUSTRIES THE SAN ANTONIO COMPANY HAS SPENT THE PAST FEW YEARS BUILDING UP AN INFRASTRUCTURE THAT MANY ANALYSTS SAY MIGHT PROVE APPEALING TO CABLE COMPANIES TRYING TO LINK DISPARATE NETWORKS EVEN DISCOUNTING MERGER POSSIBILITIES THE COMPANY HAS HEALTHY NUMBERS FOR ALL OF 1987 THE COMPANY MUSTERED JUST 32000 IN REVENUE FOR FISCAL 1993 ENDED SEPT 30 ANALYSTS EXPECT USLD WILL REPORT REVENUE OF MORE THAN 135 MILLION SOME PREDICT 300 MILLION IN REVENUE BY 1995 ANALYSTS EXPECT EARNINGS THIS YEAR TO REACH 5 MILLION OR 42 CENTS A SHARE A FIVEFOLD INCREASE IN JUST TWO YEARS THE COMPANY'S STOCK PRICE HAS EXPLODED FROM ABOUT 75 CENTS A SHARE IN LATE 1990 TO ABOUT 21 ADJUSTED FOR A 2FOR3 REVERSE SPLIT EARLY IN 1991 YET DESPITE THIS EXPANSION FEW PEOPLE OUTSIDE THE MARKETS USLD SERVES MOSTLY THE SOUTHWEST AND WEST COAST SEEM TO HAVE HEARD OF THE COMPANY ONLY A HANDFUL OF ANALYSTS AND ONLY THOSE SPECIALIZING IN SMALLCAP ISSUES TRACK USLD AND MEDIA COVERAGE HAS BEEN SCARCE THAT SOON COULD CHANGE HAVING SPENT THE PAST FEW YEARS EXPANDING ITS BUSINESS INTERNALLY USLD NOW IS IN THE MOOD TO MAKE SOME CONNECTIONS IN RECENT WEEKS USLD ANNOUNCED PLANS TO PURCHASE TWO PRIVATELY HELD LONGDISTANCE CARRIERS ONE IN ABILENE THE OTHER IN PORTLAND ORE USLD IS STILL ON THE HUNT THE COMPANY HAS A MERGERS AND ACQUISITION TEAM THAT MEETS WEEKLY TO DISCUSS STRATEGY AND POTENTIAL ACQUISITION CANDIDATES AND SAYS PARRIS BUTCH HOLMES JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER I'D BE VERY SURPRISED IF WE STOPPED WITH THE TWO WE'VE ALREADY DONE WE HAVE THE APPETITE RIGHT NOW TO DO DEALS THE CUMULATIVE EFFECT OF A FEW MORE SIMILAR ACQUISITIONS MR SHOOK CALCULATES WOULD AMOUNT TO ADDING ABOUT 15 TO 20 CENTS A SHARE TO USLD'S EARNINGS SAYS MICHAEL EILING ANALYST AT OPPENHEIMER IN NEW YORK ACQUISITIONS COULD CARRY THE STOCK PRICE UP TO 30 USLD HAS A WIDE ASSORTMENT OF ACQUISITION PROSPECTS TO STUDY THERE ARE ROUGHLY 600 LONGDISTANCE CARRIERS IN THE COUNTRY 150 ALONE IN TEXAS ASIDE FROM AMERICAN TELEPHONE & TELEGRAPH MCI COMMUNICATIONS AND SPRINT THERE EXIST A DOZEN OR SO SECONDTIER COMPANIES SUCH AS USLD WITH ANNUAL REVENUE OF 100 MILLION TO 1 BILLION THE REST ARE LOCAL MOSTLY PRIVATELY HELD CARRIERS WITH REVENUE OF LESS THAN 100 MILLION USLD IS PICKING COMPANIES WITH REVENUE OF 5 MILLION TO 25 MILLION THAT WILL BOOST USLD'S LONGDISTANCE CLIENT BASE TYPICALLY ANALYSTS NOTE USLD IS PAYING 50 TO 75 OF THE ACQUIRED COMPANIES' ANNUAL REVENUE AND BECAUSE INVESTORS CURRENTLY VALUE USLD AT ABOUT TWO TIMES ITS OWN REVENUE USLD IS BUYING GROWTH VERY CHEAPLY SAYS GERARD MCMAHON RESEARCH DIRECTOR AT THOMAS JAMES ASSOCIATION IN ROCHESTER NY BUT WHILE USLD BUSIES ITSELF IN THE SHORT TERM AS AN ACQUIRER LONGTERM IT IS A TAKEOVER CANDIDATE IN ITS OWN RIGHT SAYS RAY HIRSCH PORTFOLIO MANAGER FOR IDS DISCOVERY FUND WHICH OWNS 225000 SHARES OF THE COMPANY THE THEORY HOLDS THAT THE CURRENT TELEPHONE/CABLETV COMBINATIONS WILL ULTIMATELY RESULT IN A VARIETY OF TELEVISIONBASED PHONE SERVICES AND THERE'S NO BETTER WAY FOR A CABLE COMPANY TO BUILD A SUBSCRIBER BASE THAN TO BUY LOCAL PHONE COMPANIES AND LINK THEM WITH A LONGDISTANCE CARRIER USLD IS IN A PRIME SPOT ON THE FOOD CHAIN SAYS ONE ANALYST USLD COMPETES IN THREE NICHES OF THE TELECOM INDUSTRY NONE OF WHICH ARE IN HOT MARKETS SUCH AS VIDEOTOHOME OR INTERACTIVE TECHNOLOGY INSTEAD USLD FOCUSES ON THE RATHER STODGY BUSINESS OF DIRECTDIAL LONG DISTANCE OPERATOR SERVICES TYPICALLY ASSOCIATED WITH CREDITCARD AND COLLECT CALLS AND BILLING AND COLLECTION SERVICES BUT THESE ARE LUCRATIVE NICHES ALTHOUGH ONE ANALYST POINTS OUT THAT USLD'S EARLY EFFORTS AT DIRECTDIAL WERE HAMPERED BY WHAT HE CALLS AN ATTEMPT TO BE ALL THINGS TO ALL PEOPLE GOING AFTER EVERYONE FROM HIGHEND CORPORATE CUSTOMERS TO RESIDENTIAL CUSTOMERS THE COMPANY HAS SINCE REFOCUSED ITS EFFORTS IT CONCENTRATES ON SMALL AND MIDSIZE BUSINESSES A LESSCOMPETITIVE HIGHERMARGIN MARKET VOID OF COMPETITION FROM GIANTS SUCH AS AT&T REVENUE FOR THE BUSINESS THIS YEAR IS ESTIMATED AT NEARLY 29 MILLION A 51 JUMP FROM A YEAR EARLIER THE OPERATORSERVICES SEGMENT WHICH PROVIDES SERVICES TO MULTITELEPHONE FACILITIES SUCH AS HOTELS HOSPITALS AND PRIVATE OWNERS OF PUBLIC PAY PHONES IS EXPECTED TO CONTRIBUTE 634 MILLION THIS YEAR UP 82 USLD ALSO IS THE COUNTRY'S LEADING BILLING CLEARINGHOUSE WITH 45 OF THE MARKET MAINTAINING AGREEMENTS WITH MORE THAN 900 LOCAL TELEPHONE COMPANIES REVENUE GROWTH HERE IS EXPECTED TO REACH 414 MILLION IN 1993 UP 34 AFTER MOUNTING AN IMPRESSIVE PRICE RUNUP IN RECENT YEARS SOME MIGHT QUESTION WHETHER USLD'S STOCK HAS ANY ROOM TO GROW BUT IT'S HARD TO FIND AN ANALYST WITH ANY WORDS TO TEMPER THE ENTHUSIASM MUTUAL FUNDS THAT RECENTLY HAVE SOLD USLD SHARES REPORT DOING SO ONLY BECAUSE THEY FOUND THEMSELVES OVERWEIGHTED IN TELECOMMUNICATIONS ISSUES NO NEWS WAS GOOD NEWS FOR TEXAS TOP STOCK GAINERS LAST WEEK OF THE TOP EIGHT PRICE GAINERS SEVEN MOVED UP WITHOUT ANY WORD OF THEIR COMPANIES POPPING UP IN THE PRESS KINETIC CONCEPTS SAN ANTONIO ROCKETED NEARLY 45 TO 525 THE COMPANY COULDN'T BE REACHED TO COMMENT THE LATEST NEWS ON THIS MANUFACTURER OF BEDS FOR ACUTELY ILL PATIENTS CAME OUT IN LATE SEPTEMBER WHEN THE COMPANY ANNOUNCED BIANCA A RHODES HAD SUCCEEDED HOWARD W DEICHEN AS CHIEF FINANCIAL OFFICER LIKEWISE THERE WAS NO NEWS TO SPUR THE DOUBLEDIGIT PRICE DROPS FOR COMPANIES SUCH AS DALLASBASED INTERVOICE STECKVAUGHN PUBLISHING OF AUSTIN OR INPUT/OUTPUT OF STAFFORD TWO STOCKS THAT DID MOVE ON NEWS DSC COMMUNICATIONS DALLAS AND TCA CABLE TYLER DSC CLIMBED 175 TO 70375 AFTER ANNOUNCING A RENEWED CONTRACT TO PROVIDE A BELL ATLANTIC UNIT WITH FIBEROPTIC EQUIPMENT TCA JUMPED 145 TO 29625 AFTER A STANDARD & POOR'S ANALYST SAID THE COMPANY WAS A LIKELY TAKEOVER TARGET IN THE WAKE OF THE BELL ATLANTIC/TELECOMMUNICATIONS DEAL HOUSTON'S CONTINENTAL AIRLINES TRADED AT 26 TIMES ITS AVERAGE DAILY VOLUME LAST WEEK CLOSING UNCHANGED AT 15625 AGAIN NO NEWS TO SPEAK OF EARLIER THIS MONTH THE CARRIER BEGAN CUTRATE SERVICE OUT OF NORTH CAROLINA DAYS LATER CONTINENTAL REDUCED ROUNDTRIP FARES TO EUROPE 9312290050 931020 TEXAS JOURNAL MORTGAGE LENDING IN TEXAS WHO HAS MADE THE MOST HOME LOANS IN TEXAS THIS YEAR IT WASN'T A TEXAS COMPANY BUT ONE FROM CALIFORNIA NORTH AMERICAN MORTGAGE HOW ABOUT THE BIGGEST LOANS THAT'S CHASE MANHATTAN PERSONAL FINANCIAL SERVICES ALTHOUGH IT MADE ONLY 186 LOANS ITS AVERAGE LOAN WAS 325791 ON THE OTHER END OF THE SCALE IS THE DEPARTMENT OF VETERANS AFFAIRS WITH AN AVERAGE LOAN OF 62371 THE FOLLOWING LISTS APPLY TO TEXAS MORTGAGE LENDING FOR THE FIRST SIX MONTHS OF 1993 NAMES AND LOCATIONS OF CORPORATE PARENTS ARE IN PARENTHESES TEXAS MORTGAGE LENDING IS EXPECTED TO INCREASE BY 9 THIS YEAR DOWN FROM A 127 JUMP IN 1992 BUT THE COUNTYBYCOUNTY VARIATIONS ARE SIGNIFICANT 9312290047 931020 TEXAS JOURNAL WINNERS & LOSERS JERRY JONES THE DALLAS COWBOYS OWNER TOOK JUST 72 HOURS TO REBUILD 12 LUXURY SUITES DESTROYED BY A FIRE IN TEXAS STADIUM OPENING IN TIME FOR HIS TEAM TO CRUSH THE 49ERS DELL COMPUTER AN AUSTIN GROUP NAMED THE PC MAKER THE 1993 LARGE PRIVATE EMPLOYER OF THE YEAR FOR ITS EFFORTS TO RECRUIT HIRE AND TRAIN PEOPLE WITH DISABILITIES LUBBOCK A HUGE DEHYDRATION PLANT TO OPEN HERE WILL EVENTUALLY PRODUCE 28 MILLION POUNDS OF FOOD FOR THE POOR EACH YEAR FROM SURPLUS VEGETABLES SERGIO BOSCO THE CHIEF EXECUTIVE OF FUTURE COMMUNICATIONS TEMPORARILY STEPPED DOWN AMID ALLEGATIONS WHICH HE DENIES THAT HE PARTICIPATED IN A SCHEME TO FRAUDULENTLY INFLATE THE STOCK PRICE AMERICAN AIRLINES MEMBERS OF THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS VOTED OVERWHELMINGLY TO AUTHORIZE A STRIKE AGAINST THE AIRLINE IF CONTRACT NEGOTIATIONS AREN'T SUCCESSFUL HOUSTON THIS CITY IS EXPECTED TO BEAR THE BRUNT OF THE LATEST ROUND OF SHELL OIL LAYOFFS 9312290044 931020 TEXAS JOURNAL NEW COMMISSION PULLS NO PUNCHES AGAINST POLLUTERS BY LAURA JOHANNES LAST WEEK'S INDICTMENT AGAINST A WAXAHACHIE WASTEHAULING COMPANY IS A SIGN THAT GOV ANN RICHARDS'S ENVIRONMENTALCRIME TASK FORCE IS DELIVERING ON ITS PROMISE TO GET TOUGH WITH POLLUTERS BUT THAT'S ONLY PART OF THE STORY ONE OF THE TASK FORCE'S MEMBERS THE NATURAL RESOURCE CONSERVATION COMMISSION IS A GROWING ENFORCEMENT POWER IN ITS OWN RIGHT THE NEW ENVIRONMENTALREGULATORY AGENCY FORMED SEPT 1 THROUGH THE MERGER OF THE TEXAS AIR CONTROL BOARD AND THE TEXAS WATER COMMISSION PACKS A PUNCH THAT MAKES THE TWO IT REPLACED PALE IN COMPARISON THE TNRCC HAS NEARLY TWICE AS MANY CRIMINAL INVESTIGATORS AND MORE ROUTINE INSPECTORS THAN ITS PREDECESSORS AND THE ENFORCEMENT BUDGET NOT INCLUDING THREE NEW CRIMINAL INVESTIGATORS AND THE NEW INSPECTORS HAS INCREASED 683000 TO 63 MILLION THE ADDITIONAL RESOURCES WILL BE DEPLOYED TO FINE SHUT DOWN OR PROSECUTE REPEAT DELIBERATE OFFENDERS PARTICULARLY THOSE WHO FALSIFY RECORDS OR DUMP HAZARDOUS WASTE ILLEGALLY THOSE ARE THE PEOPLE WE'LL THROTTLE SAYS TNRCC DEPUTY EXECUTIVE DIRECTOR KENNETH RAMIREZ ON SEPT 22 IN A NONCRIMINAL ACTION TNRCC SHUT DOWN GIBRALTAR CHEMICAL RESOURCES INC A WINONA SUBSIDIARY OF MOBLEY ENVIRONMENTAL SERVICES INC KILGORE IT WAS THE FIRST TIME A TEXAS ENVIRONMENTAL AGENCY HAD SHUT DOWN A BUSINESS TNRCC OFFICIALS SAY GIBRALTAR A COMMERCIAL HAZARDOUSWASTE FACILITY WAS ALLOWED TO REOPEN AFTER CONVINCING THE TNRCC THAT IT HAD BEGUN ADDRESSING ITS ALLEGED VIOLATIONS WHICH INCLUDED RELEASING HAZARDOUS WASTE INTO THE SOIL GROUND WATER AND AIR BEFORE THE AGENCIES MERGED SAYS TNRCC COMMISSIONER JOHN HALL A COMPANY COULD HAVE NUMEROUS WATER VIOLATIONS AND THEN TURN AROUND AND GET A LUCRATIVE AIR PERMIT ENVIRONMENTAL GROUPS MEANWHILE ARE WATCHING ALL THIS CLOSELY SAYS SIERRA CLUB STATE DIRECTOR KEN KRAMER THEY SOUND AS IF THEY'RE GOING TO GET TOUGHER BUT ONLY TIME WILL TELL 9312290042 931020 TEXAS JOURNAL WYNDHAM HOTELS REACHES FOR UPPER TIER BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS WYNDHAM HOTELS & RESORTS WANTS A ROOM AT THE TOP AFTER 12 YEARS AS A MOSTLY REGIONAL UPSCALE CHAIN THE COMPANY FOUNDED BY DALLAS DEVELOPER TRAMMELL CROW IS SHOPPING FOR ANOTHER UPSCALE CHAIN OR A PORTFOLIO OF HOTELS WYNDHAM SAYS IT HOPES TO JOIN THE BIG PLAYERS BY DOUBLING ITS HOLDINGS AND MOVING INTO MORE NATIONAL MARKETS BUT THE PRIVATELY HELD COMPANY LEARNED THIS MONTH IT ISN'T GOING TO BE EASY THE CHAIN'S FIRST BIG EFFORT TO EXPAND A MOVE TO ACQUIRE SEATTLEBASED WESTIN HOTELS & RESORTS FROM AOKI CORP OF TOKYO APPEARS TO HAVE FIZZLED WYNDHAM OFFICIALS SAY THE DALLAS CHAIN LIKELY HAS BEEN OUTBID BY TWO OTHER GROUPS FOR WESTIN'S 56 NORTH AMERICAN HOTELS AND THE COMPANY NOW CONSIDERS ITSELF A LONGSHOT FOR THE DEAL DESPITE THE APPARENT LOSS OF THE WESTIN DEAL WYNDHAM SAYS IT IS INVOLVED IN AT LEAST TWO OTHER SERIOUS DISCUSSIONS THAT WOULD ALSO DOUBLE THE SIZE OF ITS HOLDINGS AND PUT IT IN MORE MAJOR MARKETS WYNDHAM SAYS IT IS WORKING WITH EQUITY FUNDS AND OTHER NONTRADITIONAL SOURCES TO FINANCE ITS EXPANSION WE'RE CONSIDERING PURSUING PORTFOLIO PURCHASES AND ARE LOOKING AT OTHER OPPORTUNITIES BUT THOSE ARE IN THE MORE FORMATIVE STAGES SAYS RICHARD CARRINGTON CHIEF FINANCIAL OFFICER INDUSTRY ANALYSTS SAY WYNDHAM'S WESTIN EFFORT DOES PROVE THE COMPANY SERIOUS ABOUT GROWING AND COMPETING WITH NAMES SUCH AS MARRIOTT SHERATON AND HYATT FOR THE NATION'S BUSINESS TRAVELERS IT'S A REGIONAL CHAIN THAT'S REALLY BEGINNING TO SHOW SOME SIGNS OF WANTING TO BECOME A MAJOR PLAYER SAYS BILL GILLETTE EXECUTIVE EDITOR OF HOTEL & MOTEL MANAGEMENT A TRADE PUBLICATION WYNDHAM'S EFFORTS TO EXPAND COME AT A TIME WHEN MUCH OF THE REST OF THE HOTEL INDUSTRY IS STRUGGLING NATIONWIDE HOTEL OCCUPANCY HIT A 20YEAR LOW IN 1991 SINCE THEN DEMAND HAS BEEN INCREASING ABOUT 35 A YEAR ACCORDING TO SMITH TRAVEL RESEARCH A GALLATIN TENN FIRM AND BIG NAMES SUCH AS STOUFFER HOTELS & RESORTS HAVE BEEN SOLD WHILE COMPANIES SUCH AS PHOENIXBASED DOUBLETREE HOTELS CORP AND BOSTONBASED GUEST QUARTERS PARTNERSHIP ARE IN MERGER TALKS THE LODGING INDUSTRY IS IN A TREMENDOUS STATE OF TRANSITION SAYS DANIEL H LESSER SENIOR VICE PRESIDENT AND DIRECTOR OF HOSPITALITY VALUATION SERVICES MINEOLA NY NOW IS A GREAT TIME TO BE BUYING A HOTEL IT'S NOT A GREAT TIME TO BE SELLING WYNDHAM SAYS IT IS DEFINITELY A BUYER WE FEEL LIKE WE'RE ON A THRESHOLD HERE THAT WILL ALLOW US TO SPRING FORWARD TO THE NEXT TIER SAYS MR CARRINGTON THE OPPORTUNITY IS RIGHT BECAUSE THERE IS SO MUCH INSTABILITY IN THE MARKET SO WHY DOES WYNDHAM THINK IT CAN CASH IN WHILE EVERYONE ELSE IS SUFFERING THE CHAIN WHICH OPERATES 49 PROPERTIES INCLUDING 31 OWNED BY WYNDHAM OR WYNDHAM PARTNERSHIPS CLAIMS OPERATING PROFIT THAT IS 25 HIGHER THAN THE AVERAGE FOR UPSCALE HOTELS IT FORECASTS 1993 REVENUE OF 367 MILLION FOR ALL OF ITS HOTELS A 61 INCREASE FROM 1990 AND WYNDHAM SAYS IT KEEPS A CLOSE EYE ON COSTS AND ISN'T RELUCTANT TO CUT SMALL AMENITIES THAT MANY OTHER LUXURY HOTELS ARE LOATH TO ELIMINATE FOR INSTANCE WYNDHAM DECIDED TO STOP PUTTING MINTS ON PATRONS' PILLOWS AFTER A SURVEY SHOWED THAT MOST OF WYNDHAM'S CUSTOMERS DON'T CARE ABOUT THE MINTS BUT THAT THEY DO WANT THINGS SUCH AS COFFEE MAKERS IN THEIR ROOMS I THINK THERE'S A LOT OF FROUFROU STUFF IN HOTELS THAT TRY TO GIVE OFF THE IMPRESSION OF ELEGANCE BUT PEOPLE IN THIS DAY IN TIME ARE MORE VALUE CONSCIOUS MR CARRINGTON SAYS YOU'VE GOT TO HIRE A WHOLE GROUP OF ROOM ATTENDANTS FOR TURNDOWN SERVICE MOST CUSTOMERS SAY THAT'S NOT WORTH ANOTHER FIVE DOLLARS ON THEIR BILL BUT ANALYSTS WARN THERE'S A FINE LINE BETWEEN CUTTING A FEW DOLLARS OFF A CUSTOMER'S BILL AND CUTTING OUT TOO MANY OF THE AMENITIES BUSINESS TRAVELERS HAVE COME TO EXPECT BUSINESS TRAVELERS ARE NOT LOOKING FOR 10 AMENITIES IN THE BATHROOM SAYS ED WATKINS EDITOR OF THE TRADE PUBLICATION LODGING HOSPITALITY MAGAZINE BUT THEY ARE LOOKING FOR THE FIVE AMENITIES THEY REALLY WANT ALSO EXPANDING BY ACQUIRING ANOTHER HOTEL CHAIN DOESN'T COME WITHOUT A COST IT'S POSSIBLE THAT THE RELATIVELY NEW WYNDHAM NAME COULD BE SACRIFICED IF THE ACQUIRED HOTEL HAS MORE BRANDNAME RECOGNITION WYNDHAM HASN'T COMPLETELY ESCAPED THE HARD TIMES THAT HAVE BEFALLEN THE INDUSTRY THE CHAIN'S FINANCIALLY STRAPPED PHILADELPHIA HOTEL EARLIER THIS YEAR WAS FORCED TO RESTRUCTURE ITS DEBT AND DEFER LEASE PAYMENTS TO A CITY AUTHORITY AND AN ATLANTA HOTEL IN SEPTEMBER EMERGED FROM A BANKRUPTCYLAW REORGANIZATION WHERE IT REFINANCED A 95 MILLION LOAN MEANTIME THE COMPANY IS TOYING WITH THE IDEA OF GOING PUBLIC EITHER ON ITS OWN OR THROUGH A REALESTATE INVESTMENT TRUST A PUBLICLY TRADED ENTITY WHICH OWNS AND OPERATES REAL ESTATE ASSETS I THINK IT'S SOMETHING WE'RE LOOKING AT VERY CAREFULLY SAYS MR CARRINGTON I WOULDN'T BE SURPRISED IF THERE IS A HOTEL REIT IN THE NEXT YEAR AND I WOULDN'T BE SURPRISED IF WYNDHAM WAS PART OF IT 9312290041 931020 TEXAS JOURNAL THE MORAL NEVER TAKE FALL RITUALS TOO LITERALLY BY MICHAEL TOTTY AH AUTUMN IN AUSTIN ALL THOSE MEETINGS ALL THOSE GREETINGS YES IT'S FUNDRAISING SEASON FOR STATE POLITICIANS A TIME FOR THE SAVVY LOBBYIST TO SHOW SUPPORT NOW FOR ACCESS LATER FOR MOST OF AUSTIN'S LOBBYISTS THAT TYPICALLY MEANS WRITING CHECKS AND WORKING THE CROWDS MAYBE RUBBING ELBOWS WITH THE LIKES OF WILLIE NELSON LYLE LOVETT AND JULIA ROBERTS AT THE GOVERNOR'S BIRTHDAY BASH OR SHAKING HANDS WITH A STATE SENATOR AT A FIRE DEPARTMENT FISH FRY BUT THE ANNUAL TWODAY AFFAIR FOR REP ROBERT JUNELL CHAIRMAN OF THE HOUSE APPROPRIATIONS COMMITTEE PUTS A NEW SPIN ON THE CONCEPT OF POLITICAL ACTION BILLED AS A MORERELAXED GATHERING LAST MONTH'S FUNDRAISER AT REP JUNELL'S SPREAD NEAR SAN ANGELO FEATURED CALFROPING A SATURDAY MORNING DOVE HUNT AND HORSEBACK RIDING SOME RELAXATION THIS YEAR'S HIGHLIGHTS INCLUDED AUSTIN LOBBYIST JACK ROBERTS' VOLUNTARY FALL FROM A BUCKING HORSE AND GILBERT TURRIETA'S FACEOFF WITH HIS OWN STEED MR TURRIETA A LOBBYIST WHOSE CLIENTS HAVE INCLUDED BLUE CROSS AND BLUE SHIELD OF TEXAS LOST HE BUMPED HEADS WITH HIS HORSE REQUIRING EIGHT STITCHES IN HIS LIP IT'S A WAY TO HUMBLE THE LOBBY MR TURRIETA SAYS WE CAN WORK MIRACLES IN THE LEGISLATURE BUT WE CAN'T SIT ON A HORSE 9312290036 931020 TEXAS JOURNAL IPO FEVER SHOWS NO SIGN OF BREAKING HARD TIMES CREATED POOL OF ENTREPRENEURS WAITING TO GO PUBLIC BY JEFF D OPDYKE HOUSTON AT THE CHARLES P YOUNG COMPANY A LEADING FINANCIAL PRINTER HERE PRESSES HAVE BEEN HUMMING AROUND THE CLOCK SEVEN DAYS A WEEK SINCE THE BEGINNING OF 1993 IT'S THE SOUND OF TEXAS' HOT MARKET FOR INITIAL PUBLIC OFFERINGS SCOTT FORDHAM PRESIDENT OF THE COMPANY HAS INCREASED HIS WORK FORCE BY 30 TO HANDLE THE FLOOD OF PROSPECTUSES THAT CUSTOMERS WANT PRINTED AND THERE'S NO SIGN OF A SLOWDOWN THE PIPELINE IS FULL MR FORDHAM SAYS ALL THE STARS ARE STILL LINED UP THE IPO MARKET IN TEXAS IS HOT SO IT IS AMID A NATIONWIDE IPO EXPLOSION TEXAS STANDS OUT AS ONE OF THE TOP PRODUCERS OF NEW PUBLIC COMPANIES IN THE FIRST NINE MONTHS OF THIS YEAR TEXAS ACCOUNTED FOR 12 OF ALL MONEY RAISED IN IPOS NATIONWIDE EXCLUDING MUTUAL FUNDS REALESTATE INVESTMENT TRUSTS AND OTHER SUCH FINANCIAL OFFERINGS ACCORDING TO SOMMERS & ASSOCIATES IN HOUSTON WHICH TRACKS THE STATE'S IPO ACTIVITY THE FEVER HAS YET TO BREAK SECURITIES DATA CO A NEWARK NJ FINANCIALINFORMATION FIRM REPORTS ABOUT A DOZEN IPOS CURRENTLY IN THE WORKS IN TEXAS AND THAT'S JUST FOR OCTOBER OTHERS ARE ON THE WAY AMONG THOSE EXPECTED OUT THIS MONTH ARE AQUILA GAS PIPELINE CORP OF SAN ANTONIO AND HOUSTON'S PETROCORP INC A GLANCE AT TODAY'S PALLID PASSBOOK AND CD RATES SHOWS WHY THE IPO MARKET IS SO POPULAR WITH INDIVIDUAL AND INSTITUTIONAL INVESTORS ACROSS THE COUNTRY BUT TEXAS' BOOM IS LINKED TO REASONS EXCLUSIVE TO THE STATE IN PARTICULAR ENTREPRENEURIAL ACTIVITY THAT GREW OUT OF CRASHES IN THE OIL BANKING AND REALESTATE SECTORS HARD TIMES BASICALLY FORCED TEXANS TO GO OUT AND CREATE THEIR OWN OPPORTUNITIES SAYS BILL DEDMON SENIOR VICE PRESIDENT AT SOUTHWEST SECURITIES INC A DALLAS INVESTMENTBANKING FIRM ADDS ROSWELL SANDY VAUGHAN AN INVESTMENTBANKING CONSULTANT IN HOUSTON WHOSE CALENDAR IS BACKLOGGED WITH COMPANIES LOOKING TO GO PUBLIC ENTREPRENEURS HAD TO DO SOMETHING TO SURVIVE SO THEY STARTED THEIR OWN COMPANIES UNITED MERIDIAN CORP A GASEXPLORATION COMPANY IN HOUSTON IS A CASE IN POINT UNITED MERIDIAN GREW OUT OF THE VISION OF RALPH BAILEY WHO AFTER SPENDING 21 YEARS AT CONOCO INC RETIRED EARLY AS CHAIRMAN AT THE AGE OF 62 IN 1987 AMID THE SLUMP IN ENERGY PRICES NOT READY TO PURGE OIL AND GAS FROM HIS VEINS MR BAILEY SET UP UNITED MERIDIAN HIS GOAL TO ACQUIRE NATURALGAS EXPLORATION AND PRODUCTION CONCERNS AT ROCKBOTTOM PRICES HOPING TO TAKE THE COMPANY PUBLIC IN FIVE TO SEVEN YEARS AND THAT'S JUST WHAT HE DID UNITED MERIDIAN JOINED THE NEW YORK STOCK EXCHANGE IN JULY THE WOES OF THE PAST ALSO HAVE CONTRIBUTED TO THE TEXAS IPO BOOM FOR ANOTHER REASON MEMORIES PERSIST OF BANKS CALLING IN LOANS NOT ONLY OF AILING COMPANIES BUT OF NUMEROUS HEALTHY ONES TOO ADD TO THAT THE CORPORATE PERCEPTION OF TIGHTFISTED LENDING PRACTICES AND STARTUP BUSINESSES IN TEXAS ARE SAYING PHOOEY ON BANKS I'LL BUILD A BALANCE SHEET THROUGH STOCK INSTEAD OF DEBT SAYS WILLIAM R THOMAS PRESIDENT OF CAPITAL SOUTHWEST CORP A VENTURECAPITAL COMPANY IN DALLAS BESIDES MR THOMAS AND OTHERS SAY IT MAKES FINANCIAL SENSE FOR COMPANIES TO RAISE MONEY IN THE STOCK MARKET THESE DAYS RATHER THAN VIA DEBT THE AVERAGE STOCK NOW TRADES AT MORE THAN 20 TIMES ITS ANNUAL EARNINGS A PRICEY FIGURE AND ONE THAT'S VERY APPEALING TO ENTREPRENEURS LOOKING TO TAKE THEIR DREAM PUBLIC MR VAUGHAN THE HOUSTON INVESTMENTBANKING CONSULTANT NOTES THAT HIGH PRICEEARNINGS MULTIPLES ARE ATTRACTIVE BECAUSE THEY MEAN A COMPANY DOESN'T HAVE TO HAVE THE SAME LEVEL OF EARNINGS TO GENERATE THE AMOUNT OF CASH THEY WANT TO RAISE TAKE LANDRY'S SEAFOOD RESTAURANTS THIS HOUSTONBASED CHAIN RAISED 27 MILLION IN AN AUGUST OFFERING PRICED AT 12 ITS MULTIPLE 22 TIMES 1992 EARNINGS IF THE MULTIPLE HAD BEEN CLOSER TO THE MARKET'S HISTORIC AVERAGE OF 15 LANDRY'S WOULD HAVE HAD TO INCREASE THE NUMBER OF SHARES OFFERED BY MORE THAN ONETHIRD TO RAISE THE SAME AMOUNT OF CASH OR WAIT UNTIL EARNINGS HAD INCREASED BY A SIMILAR MARGIN LANDRY'S HAS PROSPERED AS A PUBLIC CONCERN AT ITS CURRENT PRICE OF ABOUT 20 THE STOCK HAS NEARLY DOUBLED IN TWO MONTHS OTHERS THAT HAVE FLOURISHED WHOLE FOODS MARKETS INC IN AUSTIN HOUSTON'S NCI BUILDING SYSTEMS INC AND HCC INSURANCE HOLDINGS INC OF HOUSTON EACH IS TRADING AT MORE THAN 150 ABOVE THEIR OFFERING PRICE DALLAS'S FIRST USA INC HAS ROCKETED MORE THAN 700 MANY IPOS HOWEVER HAVE NOT FARED SO WELL TYLERBASED CELEBRITY INC AN ARTIFICIALFLOWER WHOLESALER HAS SLUMPED NEARLY 60 SINCE ITS OFFERING LAST DECEMBER HOUSTON'S COMMUNITY HEALTH COMPUTING CORP IS OFF MORE THAN 40 AS IS INTEGRATED SECURITY SYSTEMS OF IRVING ANOTHER THEME OF THE TEXAS IPO BAZAAR THE DIVERSITY OF COMPANIES COMING TO MARKET THE ENERGY SECTOR OF COURSE IS WELL REPRESENTED BUT ALSO IN THE ECLECTIC MIXTURE ARE EATERY OUTFITS SUCH AS BILLY BLUES FOOD CORP DF&R RESTAURANTS INC AND TACO CABANA INC FINANCIALSERVICES FIRMS THE LIKES OF ACE CASH EXPRESS INC AND FIRST USA AND HIGHTECH ENTERPRISES SUCH AS NETWORTH INC AND DATA RACE INC AN S&L EVEN NOSED IN ON THE ACT COASTAL BANK SAVINGS ASSOCIATION ALL TOLD MORE THAN A DOZEN INDUSTRIES ARE REPRESENTED THE IPO BOOM TOUCHES ALL PARTS OF THE STATE WITH MIDLAND SAN ANTONIO AND EVEN TINY SEGUIN OFFERING UP A PUBLIC COMPANY OR TWO RECENTLY DALLAS IS DOING WELL WITH 24 OFFERINGS THROUGH MIDSEPTEMBER BUT HOUSTON STANDS OUT NOT ONLY DOES THIS CITY LEAD WITH THE MOST OFFERINGS 29 THROUGH MIDSEPTEMBER BUT EIGHT OF THE LAST NINE MEDICALRELATED STOCKS SIRED IN TEXAS COME FROM THE HOUSTON AREA REFLECTING THE MANY TEACHING HOSPITALS HERE WHERE RESEARCH HAS CULMINATED IN STATEOFTHEART TECHNOLOGIES OR ADVANCED MEDICAL TREATMENTS ARGUS PHARMACEUTICALS INC AND CYBERONICS INC ARE TWO SUCH COMPANIES ARGUS A WOODLANDSBASED DRUG MAKER TRACES ITS ORIGINS TO THE LABORATORIES OF THE MD ANDERSON CANCER CENTER WHERE IN THE LATE1980S THE COMPANY SIGNED RESEARCH CONTRACTS WITH SCIENTISTS THE PLAN TO COMMERCIALIZE PROMISING DRUGS AND TREATMENTS DISCOVERED AT THE CENTER AFTER RECEIVING A TOTAL OF 92 MILLION IN VENTURECAPITAL FUNDS THROUGH THE LATE1980S ARGUS TURNED TO THE STOCK MARKET IN JUNE 1992 RAISING NEARLY 12 MILLION FOR CONTINUED RESEARCH AND DEVELOPMENT THE COMPANY TODAY HAS TWO DRUGS IN HUMAN CLINICAL TRIALS SIMILARLY WEBSTERBASED CYBERONICS SPRUNG UP IN 1987 WHEN FOUNDER REESE TERRY SET OUT TO PROVE VIABLE A DEVICE DESIGNED TO HELP CONTROL PREVIOUSLY UNTREATABLE CASES OF EPILEPSY AND OTHER NEUROLOGICAL DISORDERS WHEN ANOTHER COMPANY BACKED OFF THE TECHNOLOGY EARLY IN THE DECADE REMANDING THE RIGHTS TO THE INVENTOR MR TERRY LATCHED ONTO IT AWARE OF A POTENTIAL MARKET OF MORE THAN 500000 SUFFERERS IN NORTH AMERICA JAPAN AND WESTERN EUROPE THE PRODUCT HAS SINCE BEEN APPROVED IN SEVERAL EUROPEAN NATIONS AND IS IN CLINICAL TRIALS IN THE US CYBERONICS WENT PUBLIC IN FEBRUARY TO RAISE 24 MILLION FOR CONTINUED RESEARCH AND DEVELOPMENT AND TO BEGIN BUILDING A MARKETING AND SALES FORCE AFTER SUCH A LONG RUN SOME NOW SUGGEST THE IPO MARKET IS PRIME FOR A COMEDOWN EARNINGS MULTIPLES ARE LOFTY MARKET WATCHERS NOTE AND EAGER INVESTORS ARE SNATCHING UP SOME OFFERINGS THAT ANALYSTS CONTEND ARE OVERPRICED TO BEGIN WITH INTEREST RATES SNEAKING BACK UP CERTAINLY WOULD PROVIDE THE RATIONALE TO EXIT AN OVERHEATED MARKET SAYS MR THOMAS MR DEDMON AGREES BUT HE NOTES THE MARKET HAS SHOWN AN ABILITY TO SELFCORRECT SUCH PROPOSED OFFERINGS AS THOSE PLANNED BY BLACKEYED PEA RESTAURANT LUTHERS BARBQ AND WEEKLY HOMES HAVE BEEN SHELVED IN RECENT MONTHS THAT'S A HEALTHY SIGN MR DEDMON CONCLUDES NEVERTHELESS SAYS MR THOMAS THERE'S STILL TIME TO JUMP IN WHILE THE SUN'S STILL SHINING ON TEXAS IPOS 9312290033 931020 TEXAS JOURNAL AMERICAN STOCK EXCHANGE MAKES TEXAS A FOCAL POINT IN ITS RECRUITING EFFORT BY JEFF D OPDYKE THE AMERICAN STOCK EXCHANGE IS BULLISH ON TEXAS IN A SHOW OF INTEREST NOT SEEN IN THESE PARTS SINCE THE GOGO YEARS OF THE OIL BOOM THE AMEX HAS LAUNCHED A CONCERTED EFFORT TO PERSUADE TEXAS COMPANIES TO LIST THEIR STOCKS ON THE EXCHANGE INDEED TRYING TO CAPITALIZE ON THE FEVERISH PACE OF INITIAL PUBLIC OFFERINGS HERE AND THE RESURGENCE OF THE TEXAS ECONOMY THE EXCHANGE HAS CHOSEN TEXAS AS A FOCAL POINT OF ITS NATIONWIDE RECRUITING EFFORTS TEXAS IS CRITICAL TO US SAYS PATRICIA MOSCHELLA A SENIOR REGIONAL DIRECTOR FOR MARKET DEVELOPMENT AT THE EXCHANGE AT THE RECENT BIOINTERNATIONAL CONFERENCE AND EXHIBITION HERE FOR EXAMPLE THE AMEX WAS THE ONLY EXCHANGE TO SET UP A BOOTH TO EDUCATE SMALL AND GROWING BIOMEDICAL FIRMS ABOUT AN EXCHANGE LISTING MS MOSCHELLA SAYS THE AMEX HOPES TO BRING SOME OF THESE SMALL COMPANIES ONTO THE AMEX THAT MIGHT OTHERWISE BE LURED TO NASDAQ LONG HOME TO STARTUP HIGHTECH BIOMEDICAL AND PHARMACEUTICAL COMPANIES MS MOSCHELLA TYPICALLY TRAVELS MONTHLY TO TEXAS TO PROSPECT FOR PRIVATE AND PUBLIC COMPANIES EACH WEEK SHE ALSO FIELDS AT LEAST 10 CALLS FROM TEXAS CHIEF EXECUTIVES INTERESTED IN HEARING THE AMEX PITCH HER POTENTIAL LISTINGS IN TEXAS 147 IT'S OBVIOUS THAT TEXAS OFFERS US A GREAT DEAL OF POTENTIAL SAYS JOSEPH STEFANELLI AN AMEX EXECUTIVE VICE PRESIDENT WE SEE THE STATE A LITTLE LIKE WE SAW CALIFORNIA IN THE 1980S AND WE WANT TO BE HERE TO FOCUS ON TEXAS AS IT IS MATURING INDICATIVE OF THE FIGHT AMEX FACES IN SECURING TEXAS LISTINGS HOWEVER IS THIS FACT OF 37 IPOS OCCURRING BETWEEN THE THIRD QUARTER OF 1992 AND THE SECOND QUARTER OF 1993 30 CHOSE NASDAQ SIX WENT TO THE NEW YORK STOCK EXCHANGE AND ONLY ONE HOUSTON BIOTECHNOLOGY INC LISTED WITH THE AMEX NEVERTHELESS THE AMEX'S EFFORTS AT WOOING TEXAS COMPANIES HAVEN'T GONE UNNOTICED ONE HOUSTON BROKER SAYS THE AMEX IS SO VISIBLE IN THE STATE THAT I HAVE PUBLICLY TRADED COMPANIES CALLING ME WANTING TO KNOW WHO TO GET IN TOUCH WITH AT AMEX FOR SURE THIS LATEST FORAY INTO TEXAS ISN'T THE FIRST TIME THE AMEX HAS GROWN SMITTEN WITH THE STATE IN THE HEADY DAYS OF OIL THE EXCHANGE TARGETED TEXAS' BURGEONING PETROLEUM INDUSTRY ADDING TO ITS LISTINGS COMPANIES SUCH AS KELLEY OIL & GAS PARTNERS LTD AND PLAINS RESOURCES INC BUT AS THE ENERGY SECTOR CRUMBLED AND THE ECONOMY STUMBLED INTEREST IN TEXAS WITHERED FOR MS MOSCHELLA AMEX'S INTEREST IN TEXAS TRANSLATES INTO FREQUENT FLIGHTS TO HOUSTON DALLAS AUSTIN SAN ANTONIO AND ANYWHERE IN BETWEEN WHERE A COMPANY HAS EXPRESSED INTEREST IN AN AMEX LISTING HER EFFORTS HAVE BEEN REWARDED LAST MONTH THE LEATHER FACTORY OF FORT WORTH LISTED ON THE AMEX'S EMERGING COMPANY MARKETPLACE HOUSTON'S SUNDOWNER OFFSHORE SERVICES INC TRADED ITS NASDAQ SYMBOL FOR AN AMEX ONE IN APRIL IN FACT SINCE 1987 15 TEXAS COMPANIES HAVE GONE TO AMEX FROM NASDAQ SEVERAL MORE LISTINGS ARE IN THE WORKS TIM HALTER PRESIDENT OF HALTER CAPITAL IN DALLAS WHICH HELPS TAKE COMPANIES PUBLIC SAYS A DALLAS OIL AND GAS CONCERN HE CAN'T YET MENTION SOON WILL LIST FROM MY VANTAGE POINT THE AMEX IS JUST MORE AGGRESSIVE IN TEXAS MR HALTER SAYS 9312290022 931027 TEXAS JOURNAL COLLIDER ECON 101 DON'T BUY NOW STILL PAY LATER BY TARA PARKERPOPE SAD ABOUT THE DEMISE OF THE SUPERCONDUCTING SUPERCOLLIDER HERE'S MORE BAD NEWS TEXANS ARE GOING TO BE PAYING FOR THE THING UNTIL THE YEAR 2022 THE STATE IN 1990 AND 1991 ISSUED 500 MILLION IN BONDS TO HELP PAY FOR THE PROJECT EVEN THOUGH THE PROJECT IS GOING AWAY THE DEBT PAYMENTS AREN'T THE ANNUAL BILL WILL BE BETWEEN 37 MILLION TO 41 MILLION AND THE FINAL PRICE TAG WHEN THEY'RE ALL PAID OFF 12 BILLION ACCORDING TO THE TEXAS BOND REVIEW BOARD ONLY 250 MILLION OF THE BONDS WERE ACTUALLY APPROVED BY VOTERS THE REST WERE ISSUED AS LEASE REVENUE BONDS A FINANCING MECHANISM THAT ALLOWED THE STATE TO DO AN END RUN AROUND VOTERS EVEN THOUGH TAX DOLLARS STILL WILL BE USED TO PAY FOR THEM STATE OFFICIALS SAY THE FATE OF THE BONDS IS UNCLEAR ABOUT 130 MILLION OF THE ISSUED BONDS HASN'T BEEN SPENT THE FUNDS MAY BE USED TO PAY FOR SHUTTING DOWN THE PROJECT OR TO PAY DOWN SOME OF THE DEBT THE BONDS WHICH HAVE INTEREST RATES OF 646 TO 708 ALSO COULD BE REFINANCED WHATEVER THE OUTCOME OFFICIALS AREN'T HAPPY ABOUT OWING MILLIONS ON A PROJECT THAT NEVER HAPPENED AND ARE SEEKING FEDERAL REIMBURSEMENT FOR BOND MONEY ALREADY SPENT I WOULD THINK THIS EXPERIENCE DOES NOT BODE WELL FOR FUTURE STATE AND FEDERAL PARTNERSHIPS SAYS THOMAS D WILLIAMS VICE CHAIRMAN OF THE TEXAS NATIONAL RESEARCH LABORATORY COMMISSION I THINK ANY STATE WOULD RIGHTLY THINK LONG AND HARD ABOUT A PARTNERSHIP WITH THE FEDERAL GOVERNMENT AT THIS POINT 9312290021 931027 TEXAS JOURNAL FOR FDIC OFFICE IN HOUSTON TIME FOR FINAL GAVEL BY SCOTT MCCARTNEY IS IT THE END OF AN ERROR NEXT WEDNESDAY THE FEDERAL DEPOSIT INSURANCE CORP'S HOUSTON OFFICE WILL CONDUCT ITS FINAL REALESTATE AUCTION IN PREPARATION FOR CLOSING ITS DOORS FOR GOOD NEXT MARCH MORE THAN SYMBOLIC THE CLOSING IS A SIGN THAT THE SPOILS OF THE 1980S FAILEDBANK BOOM HAVE BEEN JUST ABOUT SOLD OFF IN JUNE 1991 THE HOUSTON OFFICE HAD MORE THAN 2000 PROPERTIES WITH A BOOK VALUE OVER 100 MILLION TO DISPOSE OF NOW THERE ARE 350 PARCELS MOSTLY RAW LAND WITH A VALUE OF 50 MILLION WE SEE IT AS A MILESTONE SAYS DON ALLEN THE FDIC'S ASSISTANT MANAGING LIQUIDATOR OF CREDIT IN HOUSTON IT'S A JOB WELLDONE THE FDIC IS CONSOLIDATING ITS TEXAS OFFICES INTO ONE CENTER NEAR DALLAS SAN ANTONIO WILL CLOSE NEXT YEAR LUBBOCK AND MIDLAND ALREADY HAVE CLOSED AT THE HOUSTON OFFICE'S FINAL AUCTION 40 PIECES OF LAND ARE SCHEDULED FOR SALE MOST ARE IN HARRIS COUNTY NOT FAR FROM HOUSTON'S BUSINESS DISTRICT THE FDIC WHICH IS REQUIRED TO SELL PROPERTY FOR AT LEAST APPRAISED VALUE HAS HAD AN EASIER TIME OF LATE BECAUSE APPRAISALS IN TEXAS HAVE CONTINUED TO FALL IN 1985 TO 1988 OR SO MANY OF APPRAISALS STILL REFLECTED MOREINFLATED TIMES MR ALLEN SAYS THE DOWNSIDE TO THE FDIC SUCCESS WITH THE CLOSING OF THE OFFICE MOST OF THE 336 EMPLOYEES WILL BE LAID OFF 9312290020 931027 TEXAS JOURNAL TEACHERS FUND SHIFTS FOCUS OF PROBE TO OUTSIDE ADVISERS BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL THE TEACHER RETIREMENT SYSTEM OF TEXAS IN ITS INVESTIGATION OF ALLEGED CONFLICTS OF INTEREST IN ITS REALESTATE OPERATIONS IS SHIFTING ITS FOCUS TO ITS OUTSIDE ADVISERS THE PROBE HAD EARLIER FOCUSED ON FORMER FUND OFFICIALS BUT AN AUDIT OF THE REALESTATE OPERATIONS HAS PROMPTED THE FUND TO ZERO IN ON A 1989 LOAN RESTRUCTURING BY DEVELOPERS OF THE 28STORY DUPONT CENTRE IN ORLANDO FLA ACCORDING TO PEOPLE FAMILIAR WITH THE AUDIT THAT RESTRUCTURING RECOMMENDED BY FUND ADVISER BOSTON CO HAS BEEN CALLED INTO QUESTION IN PART BECAUSE OF A 230000 FEE PAID TO THE ADVISERS BUT NOT AUTHORIZED BY TEACHER RETIREMENT SYSTEM OFFICIALS THE AUDIT BY COOPERS & LYBRAND WAS ORDERED EARLIER THIS YEAR AFTER A STATE ATTORNEY GENERAL'S REPORT OUTLINED ALLEGATIONS OF CONFLICTS OF INTEREST IN THE HANDLING OF THE REALESTATE INVESTMENTS OF THE RETIREMENT SYSTEM WHICH MANAGES 367 BILLION FOR 660000 PEOPLE LAST MONTH COOPERS TURNED OVER THE AUDIT RESULTS TO THE BOARD OF THE RETIREMENT SYSTEM WHICH REFERRED THE REPORT TO THE ATTORNEY GENERAL'S OFFICE THE BOARD HASN'T DISCLOSED THE REPORT'S FINDINGS PETER HASKEL AN ASSISTANT ATTORNEY GENERAL IN CHARGE OF THE CASE ALSO WON'T DISCUSS THE AUDIT CITING ATTORNEYCLIENT PRIVILEGE HE CONFIRMS ONLY THAT LAWSUITS ARE POSSIBLE BUT HE ADDS AT THIS TIME THERE ARE NO PLANS TO COMMENCE LITIGATION AGAINST CURRENT OR FORMER TRS EMPLOYEES A BOSTON CO SPOKESMAN SAYS THE COMPANY COOPERATED FULLY AND VOLUNTARILY WITH THE COOPERS AUDIT HE REFERS FURTHER QUESTIONS TO OFFICIALS OF THE FUND BOSTON CO WAS ACQUIRED THIS YEAR BY MELLON BANK CORP PITTSBURGH AND THE REALESTATE ADVISORY GROUP WAS MERGED INTO MELLON/MCMAHAN REAL ESTATE ADVISERS INC A MELLON UNIT THAT REMAINS AN ADVISER TO THE TEACHER RETIREMENT SYSTEM ACCORDING TO THE STATE ATTORNEY GENERAL'S REPORT IN 1988 THE TEACHERS' FUND PROVIDED 545 MILLION IN PERMANENT FINANCING FOR THE FIRST FA BUILDING THE BUILDING WAS THE CORNERSTONE OF THE DUPONT CENTRE DEVELOPMENT PLANNED BY WILLIAM DUPONT III AN HEIR TO THE DUPONT FORTUNE AND FORMER OWNER OF THE NATIONAL BASKETBALL ASSOCIATION'S ORLANDO MAGIC A YEAR LATER THE PROPERTY WAS IN TROUBLE AND ON THE ADVICE OF BOSTON CO THE RETIREMENT SYSTEM AGREED TO RESTRUCTURE THE ORIGINAL LOAN INCLUDED IN THE NEW FINANCING WAS 16 MILLION IN ADDITIONAL FUNDS THAT THE ATTORNEY GENERAL'S REPORT COULDN'T ACCOUNT FOR OWEN A REISCHMAN WHO AT THE TIME WAS THE TEACHER RETIREMENT SYSTEM'S DIRECTOR OF REAL ESTATE LATER SAID THE ADDITIONAL FUNDS WERE USED BY THE BORROWER TO REPAY SECONDARY BANK LIENS ON THE PROPERTY EVEN THOUGH THERE WAS NO EQUITY IN THE PROPERTY AND TEACHERS' FIRST MORTGAGE WOULD HAVE PREEMPTED THE OTHER LIENS IN ANY FORECLOSURE PROCEEDINGS IN FACT THE RETIREMENT SYSTEM FORECLOSED ON THE BUILDING IN NOVEMBER 1990 ITS 76 MILLION INVESTMENT IN THE PROPERTY SINCE RENAMED THE BARNETT BANK CENTER IS NOW VALUED AT 416 MILLION MR REISCHMAN WHO WAS FIRED BY THE TEACHERS' FUND SHORTLY AFTER THE ATTORNEY GENERAL'S REPORT WAS RELEASED SAYS HE RELIED ON ADVICE FROM BOSTON CO IN APPROVING THE RESTRUCTURING IN HINDSIGHT YOU MIGHT SAY WE SHOULDN'T HAVE DONE THIS PARTICULAR TRANSACTION BUT HINDSIGHT IS ALWAYS 2020 MR REISCHMAN SAYS 9312290011 931013 TEXAS JOURNAL TEXAS WINERIES RED WHITE AND BLUE HIGH HOPES DASHED BY LAWS SQUABBLING AND POOR DISTRIBUTION BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL IT WAS A HEADY TIME FOR TEXAS WINES THE YEAR WAS 1986 AND BOBBY COX'S PHEASANT RIDGE WINERY STRUCK GOLD AT A NATIONAL WINE COMPETITION PROOF IT WAS SAID THAT TEXAS COULD BECOME THE NEXT NAPA VALLEY IT DIDN'T HAPPEN SEVEN YEARS LATER PHEASANT RIDGE IS STRUGGLING HAMSTRUNG BY DISTRIBUTION AND FINANCIAL PROBLEMS AND EMBARRASSED BY TWO BAD LOTS OF WINE IN 1990 AND 1991 MR COX A DIEHARD BELIEVER IN THE TEXAS WINE INDUSTRY IS NOW WORKING WITH A MINORITY SHAREHOLDER TO SAVE THE COMPANY AT BEST HE HOPES TO HANG ON TO A SMALL OWNERSHIP STAKE IN THE WINERY HIS FAMILY STARTED 15 YEARS AGO WE HAVE BEEN UNDER EXTREME FINANCIAL DISTRESS SINCE THE DAY WE STUCK A GRAPE IN THE GROUND MR COX SAYS WE NEVER NEVER NEVER EVEN APPROACHED ANY SORT OF FINANCIAL SUCCESS THE SAME CAN BE SAID OF THE TEXAS WINE INDUSTRY ITSELF STATE OFFICIALS AND INDUSTRY BOOSTERS ARE HERALDING OCTOBER AS TEXAS WINE MONTH BUT WHILE THEY PAINT A ROSY PICTURE OF THE STATE'S WINE BUSINESS OTHERS NOTE THAT THE INDUSTRY HAMPERED BY DISTRIBUTION PROBLEMS REGULATORY HEADACHES AND SQUABBLING AMONG WINERIES HAS YET TO LIVE UP TO ITS ONCEBRIGHT EXPECTATIONS AFTER 15 YEARS MANY WINERIES HAVE YET TO BREAK EVEN LET ALONE TURN A PROFIT A HANDFUL OF WINERIES HAVE GONE OUT OF BUSINESS AND FRUSTRATED VINEYARD GROWERS HAVE PULLED UP THEIR GRAPES THE RESULT ALTHOUGH STATE WINE PRODUCTION HAS INCREASED TEXAS WINE IS BARELY A BIT PLAYER ON THE NATIONAL SCENE TEXAS PRODUCED ABOUT 12 MILLION GALLONS OF WINE LAST YEAR RANKING FIFTH IN THE NATION ACCORDING TO TEXAS TECH UNIVERSITY'S TEXAS WINE MARKETING RESEARCH INSTITUTE TEXAS BRANDS HAVE CAPTURED JUST 25 OF THE TEXAS WINE MARKET AND DON'T EVEN REGISTER IN NATIONAL NUMBERS TEXAS CERTAINLY HAD MOVED INTO THE REALM WHERE PEOPLE WERE THINKING ABOUT IT AND TAKING IT MORE SERIOUSLY SAYS JAMES LAUBE SENIOR EDITOR OF THE WINE SPECTATOR BUT RECENTLY MUCH OF THE AIR HAS GONE OUT OF THAT OPTIMISM THERE WAS MORE ANTICIPATION AND LESS DELIVERY IN THEIR WINES FOR THE WINE INDUSTRY AS A WHOLE THESE ARE TOUGH TIMES NATIONWIDE CONSUMPTION IS EXPECTED TO DECLINE 4 IN 1993 ACCORDING TO IMPACT AN INDUSTRY NEWSLETTER THE DECLINE HAS TRIGGERED A CONSOLIDATION AMONG MANY WINE DISTRIBUTORS MAKING IT DIFFICULT FOR SMALLER WINERIES TO GET THEIR PRODUCTS INTO STORES OR RESTAURANTS BUT IN TEXAS THESE PROBLEMS ARE COMPOUNDED BY A REGULATORY CLIMATE THAT HAS BEEN LESS THAN SUPPORTIVE OF THE STATE'S FLEDGLING INDUSTRY ONEFOURTH OF THE STATE'S WINERIES ARE IN DRY AREAS WHICH MEANS THEY MISS OUT ON THE LUCRATIVE PRACTICE OF SELLING THEIR PRODUCTS RIGHT AT THE WINERIES EVEN THOSE WINERIES THAT ARE IN WET AREAS SUFFER BECAUSE MOST OF THE GRAPE SUPPLY IS IN THE HIGH PLAINS AREA NEAR LUBBOCK A DRY AREA SO A WINERY THAT WANTS TO SET UP SHOP IN A WET AREA HAS TO PAY THE EXTRA COSTS OF SHIPPING THE GRAPES STILL THE TEXAS LEGISLATURE THIS YEAR INCREASED THE NUMBER OF SIGNATURES NEEDED TO CALL AN ELECTION ON THE ALCOHOL ISSUE MAKING IT NEARLY IMPOSSIBLE TO CHANGE A COUNTY'S WET/DRY STATUS COMPETITION IS ANOTHER PROBLEM TEXAS AGRICULTURE COMMISSIONER RICK PERRY LIKES TO BOAST THAT THE STATE HAS 25 WINERIES WHAT MR PERRY FAILS TO MENTION IS THAT JUST ONE OF THOSE WINERIES CORDIER ESTATES WHICH SELLS UNDER THE LABEL OF ST GENEVIEVE VINEYARDS ACCOUNTS FOR ABOUT 70 OF ALL WINE PRODUCED IN THE STATE AN AFFILIATED COMPANY OF CORDIER'S DOMAIN CORDIER USA ALSO HAS THE LUXURY OF LEASING A 1000ACRE VINEYARD IN PECOS COUNTY THE LARGEST IN THE STATE WHICH IS OWNED BY THE UNIVERSITY OF TEXAS SYSTEM THE COMPANY ACCORDING TO A UNIVERSITY OF TEXAS OFFICIAL PAYS THE STATE A ROYALTY OF 6 OF GROSS REVENUE FOR USE OF THE LAND AN ARRANGEMENT THAT HAS SOME WINERIES CRYING FOUL IT MAKES FOR VERY DIFFICULT COMPETITION SAYS WALTER HAIMANN PRESIDENT OF LLANO ESTACADO THEY ARE SELLING THEIR WINE AT PRICES SO LOW I THINK MILK COSTS MORE THEY DO NOT HAVE THE COSTS THAT THE REST OF US DO BUT WHAT ABOUT THE OTHER WINERIES IN ADDITION TO THE TROUBLES AT PHEASANT RIDGE AT LEAST TWO OTHER WINERIES ST LAWRENCE WINERY IN GARDEN CITY TEXAS AND LA ESCARBADA XIT VINEYARD & WINERY IN AMARILLO HAVE CLOSED THEIR DOORS ST LAWRENCE OWNER JEROME HOELSCHER INVESTED 250000 IN HIS 20000 GALLONCAPACITY WINERY AND 27 ACRES OF VINEYARDS THIS YEAR HE DUG UP HIS VINES PLANTED GRAIN INSTEAD AND BEGAN SELLING HIS WINEMAKING EQUIPMENT FOR 50 CENTS ON THE DOLLAR I'VE GOT IT UP TO MY EYEBROWS ABOUT THE WINERY BUSINESS SAYS MR HOELSCHER TO BE REAL CANDID I DON'T REALLY CARE THEY CAN STUFF IT THAT'S WHAT THE TEXAS WINE BUSINESS MEANS TO ME MR HOELSCHER AND OTHER WINEMAKERS SAY THEIR BIGGEST PROBLEMS ARE WITH THE STATE'S DISTRIBUTORS WHOM WINEMAKERS RELY ON TO PUT THEIR PRODUCT ON GROCERY AND LIQUORSTORE SHELVES WE HAVE TO DISCOUNT OUR WINE BY 50 TO GO THROUGH A DISTRIBUTOR SAYS TOM GREAVES ONE OF THREE OWNERS OF THE PRESTON TRAIL WINERY IN GUNTER A DRY AREA WHEN YOU SELL ALL YOUR WINE THAT WAY YOU'RE LUCKY IF YOU CAN BREAK EVEN AND MANY WINEMAKERS ARE LUCKY TO EVEN SELL THROUGH A DISTRIBUTOR ONE OF THE LARGEST DISTRIBUTORS AMERICAN WINE & IMPORTING SHUT ITS DOORS LAST YEAR AND THERE ARE RUMORS THAT ANOTHER LARGE TEXAS DISTRIBUTOR IS IN FINANCIAL TROUBLE THERE ARE CERTAINLY MANY MORE TEXAS WINERIES OPERATING THAT NEED DISTRIBUTORS THAN THERE ARE DISTRIBUTORS AVAILABLE IN TEXAS SAYS JOHN RECTOR SENIOR VICE PRESIDENT OF SIGEL'S LIQUORS AND FINE WINES IN DALLAS MR RECTOR SAYS HE CARRIES ABOUT FIVE TEXAS WINES HALF AS MANY AS HE DID FIVE YEARS AGO I HAD A PHONE CALL THIS MORNING FROM A GUY WITH AN OPERATION IN CENTRAL TEXAS TRYING TO FIGURE HOW TO GET ME TO HANDLE HIS WINES MR RECTOR SIGHS I TOLD HIM THERE ARE LITERALLY THOUSANDS OF WINES FOR ME TO SELL IN MY STORE MANY MORE THAN WHAT I HAVE ROOM FOR ADDS JOHN RYDMAN PRESIDENT OF SPEC'S LIQUORS IN HOUSTON WHICH CARRIES 15 TO 18 TEXAS LABELS AND DEDICATES AN ENTIRE AISLE TO TEXAS WINES AT THIS POINT I'M DEVOTING MORE SPACE TO THE SECTION THAN ITS SALES ARE JUSTIFYING INSTEAD OF MARSHALING THEIR FORCES AGAINST THESE OBSTACLES THE WINE INDUSTRY ITSELF IS SPLIT THE TEXAS WINE & GRAPE GROWERS ASSOCIATION WITH 18 MEMBER WINERIES HAS REPRESENTED THE INDUSTRY SINCE 1976 BUT A GROUP OF WINERIES LED BY LLANO ESTACADO AND FALL CREEK BROKE AWAY TWO YEARS AGO AND FORMED THE TEXAS WINE ALLIANCE THEY FELT THAT A WINERY TRADE GROUP SHOULDN'T ALSO HAVE TO DEAL WITH THE ISSUES OF GROWERS STILL THERE HAVE BEEN BRIGHT SPOTS IN TEXAS WINE IN TERMS OF QUALITY EXPERTS SAY LLANO ESTACADO MESSINA HOF AND FALL CREEK HAVE PRODUCED SOME OF THE STATE'S BEST WINE OTHERS SPEAK GLOWINGLY OF CAPROCK THE RETOOLED VERSION OF THE ONCEBANKRUPT TEYSHA WINE CELLARS I THINK MAYBE THE EXPECTATIONS EARLY ON WERE JUST TOO HIGH SAYS PAUL BONARRIGO OWNER OF MESSINA HOF WINE CELLARS IN BRYAN AND PRESIDENT OF THE TEXAS WINE & GRAPE GROWERS ASSOCIATION THERE WAS JUST TOO MUCH HYPE NOW THE INDUSTRY IS MATURING AT A PACE THAT IT SHOULD IF THAT IS THERE ARE ENOUGH GRAPES ALTHOUGH MANY WINERIES MAINTAIN THEIR OWN VINEYARDS MOST MUST STILL CONTRACT WITH OUTSIDE GROWERS TO MAINTAIN THEIR PRODUCTION BUT THE NUMBER OF GROWERS HAS DROPPED PARTICULARLY SINCE A 1991 HALLOWEEN FREEZE FIVE YEARS AGO THE CONCERN IN TEXAS WAS THERE WERE TOO MANY GRAPES FOR THE WINERIES SAYS CHARLES MCKINNEY DIRECTOR OF RESEARCH FOR UNIVERSITY LANDSSURFACE INTERESTS AT THE UNIVERSITY OF TEXAS SYSTEM TODAY THE CONCERN BY THE WINERIES IS WILL THERE BE ENOUGH LUBBOCK FARMER CLEO LOWE PULLED UP HIS 45ACRE VINEYARD THIS YEAR FIRST IT FROZE OUT COMPLAINS MR LOWE THEN THEY GOT TO WHERE NOBODY WANTED THEM NOW I'M RAISING JALAPENO PEPPERS AS IF ON CUE STATE OFFICIALS APPEAR TO HAVE FINALLY NOTICED THE PLIGHT OF ITS STRUGGLING WINE INDUSTRY MR PERRY AND THE TEXAS DEPARTMENT OF AGRICULTURE ARE URGING RESTAURANTS AND HOTELS TO SERVE MORE TEXAS WINE THE OMNI HOTELIN AUSTIN RECENTLY SAID THAT IT WILL NOW SERVE TEXAS WINES EXCLUSIVELY IN ADDITION THE TEXAS DEPARTMENT OF TRANSPORTATION HAS BEGUN PLACING SIGNS ON THE HIGHWAY NEAR WINERIES AND VINEYARDS TO PROMOTE TOURISM AND THE FOLKS AT PHEASANT RIDGE HAVEN'T GIVEN UP EITHER HOUSTON OILMAN WILLIAM GIPSON NOW CHAIRMAN OF THE BOARD CONTINUES TO PUMP MONEY INTO THE WINERY AND IS EXPECTED TO EMERGE AS A MAJORITY SHAREHOLDER PHEASANT RIDGE WHICH DIDN'T PRODUCE ANY WINE IN 1992 EXPECTS TO PUT OUT ABOUT 5000 CASES THIS YEAR STILL A FAR CRY FROM THE 14000 IT PRODUCED IN 1989 I'M CONVINCED THE BETTER WINE IS TEXAS WINE SAYS MR GIPSON NOW WE'RE TRYING TO CONVINCE EVERYONE ELSE SO HOW DO TEXAS WINES REALLY RATE WITH THE HELP OF DALLAS'S BEAU NASH RESTAURANT IN THE HOTEL CRESCENT COURT TEXAS JOURNAL DECIDED TO FIND OUT TEXAS AGRICULTURE COMMISSIONER RICK PERRY BEAU NASH SOMMELIER VICTOR OROZCO AND TEXAS JOURNAL EDITOR MIKE ALLEN WERE THE JUDGES IN A BLIND TASTING THAT PITTED FOUR OF THE BEST TEXAS WINES AGAINST SIMILAR OR LOWERPRICED COUNTERPARTS FROM CALIFORNIA AND OREGON THIRTEEN GLASSES OF WINE LATER A JUBILANT AND RELIEVED MR PERRY SHOWED HE REALLY HAS BEEN PAYING ATTENTION DURING NEARLY THREE YEARS OF PROMOTING THE STATE'S WINE INDUSTRY HE PICKED TEXAS WINES EVERY TIME I CAME HERE TO PICK WHAT I LIKED SAYS MR PERRY WHO CONCEDES HE HAS PROBABLY DEVELOPED A PALATE FOR THE STATE'S WINE I DRINK TEXAS WINE BECAUSE IT'S MY JOB BUT ALSO BECAUSE I LIKE IT HERE'S HOW THE TEXAS WINES STACKED UP IN OUR LESSTHANSCIENTIFIC TEST THE NUMBERS SHOW HOW EACH TESTER RANKED THE TEXAS WINE IN COMPARISON WITH THE COMPETITION FOLLOWED BY SOME OF THEIR SPECIFIC COMMENTS I DIDN'T PICK IT JUST BECAUSE I THOUGHT IT WAS A TEXAS WINE 9312290010 931013 TEXAS JOURNAL HEARD IN TEXAS MEDICAL CARE AMERICA'S VITAL SIGNS OFFER REASON FOR ENCOURAGEMENT BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS MEDICAL CARE AMERICA IS IN THE INTENSIVECARE UNIT REVENUE GROWTH AT THE HEALTHCARE CONCERN'S OUTPATIENT SURGICAL CENTERS HAS SLOWED IT IS EXPECTED TO ANNOUNCE A WRITEOFF OF NO LESS THAN 100 MILLION TO RECONSTRUCT ITS AILING HOMEINFUSION BUSINESS WHICH PROVIDES SERVICES FOR PEOPLE USING INTRAVENOUS PREPARATIONS AT HOME MANY ANALYSTS HAVE TAGGED A HOLD UNDERPERFORM OR EVEN AVOID RATING ON THE COMPANY'S STOCK WHICH IN THE PAST YEAR STRAIGHTLINED TO 20 FROM LESS THAN 64 ALL IN ALL IT COULD BE A GOOD TIME TO ACQUIRE SOME SHARES SOME ANALYSTS ARE BEGINNING TO SAY MEDICAL CARE HAS SUNK ABOUT AS LOW AS IT WILL GO THE COMPANY'S EFFORTS TO CUT COSTS AND REDIRECT THE HOMEINFUSION BUSINESS AS WELL AS ITS EFFORTS TO TEAM ITS OUTPATIENTSURGERYCENTER SERVICES WITH LARGE HOSPITALS MEAN MEDICAL CARE AMERICA IS AT A TURNING POINT SAYS JOHN R RUNNINGEN HEALTHCARE ANALYST AT ATLANTA'S ROBINSONHUMPHREY BROKERAGE FIRM MEDICAL CARE'S STOCK IS STILL A VENTURESOME PLAY MANY HOSPITALS ARE ACTIVELY PURSUING THEIR OWN VERSIONS OF OUTPATIENTSURGERY CENTERS THERE ALSO ARE NO GUARANTEES THAT MEDICAL CARE CAN FULLY RECOVER FROM A DAMAGING INDUSTRY PRICE WAR BY CUTTING COSTS AND CHANGING THE FOCUS OF ITS HOMEINFUSION BUSINESS FROM THE CHRONICALLY AND CRITICALLY ILL TO LOWERRISK PATIENTS WHICH IS LESS COSTLY ON TOP OF THAT NO ONE IS QUITE SURE HOW THE CLINTON HEALTHCARE PLAN WILL PAN OUT BUT MEDICAL CARE IS SHOWING ENCOURAGING SIGNS OF RECOVERY JUST LAST WEEK THE COMPANY ANNOUNCED A VENTURE WITH HOSPITAL GIANT COLUMBIA HEALTHCARE IN WHICH THE TWO WILL JOINTLY PROVIDE HOSPITAL OUTPATIENT SURGERY AND HOMEINFUSION SERVICES BEGINNING IN NINE OVERLAPPING MARKETS IN THE MIDWEST SOUTHEAST AND SOUTHWEST THE TWO COMPANIES HAVE A SIMILAR AGREEMENT IN CORPUS CHRISTI WITH A GROUP OF LOCAL DOCTORS MEANING THAT NO MATTER WHERE A PATIENT RECEIVES SERVICES IN THE HOSPITAL AN OUTPATIENT CENTER WE ALL BENEFIT SAYS JONATHAN BOND A MEDICAL CARE SENIOR VICE PRESIDENT THOSE SORTS OF ALLIANCES ARE THE FUTURE OF HEALTH CARE ANALYSTS CONTEND SUCH AFFILIATIONS WORK TO NEGOTIATE DEALS WITH HMOS AND INSURERS AND SLASH COSTS AND THEY MIGHT WELL HELP MEDICAL CARE REGAIN ITS VIGOR THEY'RE DOING ALL THE RIGHT THINGS TO SURVIVE SAYS NEAL C BRADSHER SENIOR HEALTHCARE ANALYST AT ALEX BROWN IN NEW YORK SAYS ANALYST KENNETH ABRAMOWITZ AT SANFORD C BERNSTEIN IN NEW YORK FROM HERE ON OUT THE COMPANY SHOULD GROW BY 12 TO 15 A YEAR IN EARNINGS BEFORE LAST FALL MEDICAL CARE HAD FEW AILMENTS BUT IN SEPTEMBER 1992 THE COMPANY THEN KNOWN AS MEDICAL CARE INTERNATIONAL GOT INTO THE HOMEINFUSION BUSINESS WHEN IT ACQUIRED CRITICAL CARE AMERICA OF WESTBOROUGH MASS AT ABOUT THE SAME TIME THE COUNTRY'S OTHER HOMEINFUSION PROVIDERS BEGAN STEEPLY DISCOUNTING THEIR SERVICES TO GAIN MARKET SHARE FORCING CRITICAL CARE INTO A PRICE WAR AS A RESULT MR BOND SAYS CRITICAL CARE SLASHED PRICES AS MUCH AS 30 AND PROFIT MARGINS DROPPED FROM 20 TO BARELY BREAKEVEN BECAUSE ITS HOMEINFUSION BUSINESS CENTERED ON HIGHCOST PATIENTS WHEN THE COMPANY ANNOUNCED ITS THIRDQUARTER 1992 EARNINGS WOULD BE FLAT ANALYSTS AND THE MARKET POUNCED ON MEDICAL CARE SHARES DUMPING THE STOCK SLASHING EARNINGS ESTIMATES AND DOWNGRADING RATINGS ON ONE DAY SEPT 25 1992 MEDICAL CARE SHARES LOST 33 OR 57 OF THEIR VALUE MEDICAL CARE'S PRESIDENT AND CHIEF EXECUTIVE OFFICER DONALD STEEN HAS UNDERSCORED COST CUTTING IN THE HOMEINFUSION SUBSIDIARY ASIDE FROM TRIMMING CRITICAL CARE'S STAFF BY 20 MR STEEN SAYS THE COMPANY HAS TAKEN MEASURES SUCH AS REPLACING ONE OF CRITICAL CARE'S STATEOFTHEART ANTIBIOTIC PUMPS WITH A SIMPLER MODEL REQUIRING LESS MAINTENANCE THAT MOVE SHAVED 3 A DAY FROM THE COST PER PATIENT WITHOUT AFFECTING CARE HE SAYS ALSO THE CHIEF EXECUTIVE EXPECTS TO SAVE 20 MILLION TO 25 MILLION OVER THE NEXT 18 MONTHS THANKS TO A NEW CENTRALIZED DISTRIBUTION SYSTEM FOR CRITICAL CARE'S 50 PHARMACIES NATIONWIDE MR STEEN HAS BEGUN AGGRESSIVELY MARKETING CRITICAL CARE'S SERVICES TO HEALTH MAINTENANCE AND PREFERRED PROVIDER ORGANIZATIONS GROUPS PRIOR MANAGEMENT OPTED NOT TO PURSUE THE RESULT OVER THE PAST YEAR HOMEINFUSION BUSINESS FROM MANAGEDCARE GROUPS HAS NEARLY DOUBLED TO 15 THE COMPANY HAS ALSO HIRED A SALES FORCE TO PROMOTE THE COMPANY'S 91 OUTPATIENT SURGERY CENTERS TO INSURERS AND MANAGEDCARE GROUPS BUT DON'T EXPECT A RAPID ASCENT IN MEDICAL CARE'S STOCK PRICE ALTHOUGH SHARES HAVE JUMPED ABOUT 14 IN THE PAST FEW DAYS TO 20 THAT'S MOSTLY ON TAKEOVER SPECULATION STEMMING FROM COLUMBIA HEALTHCARE'S RECENT ANNOUNCEMENT THAT IT PLANS TO ACQUIRE HCA AMERICA MOST ANALYSTS HOWEVER DON'T CONSIDER MEDICAL CARE AMERICA A BUYOUT TARGET INSTEAD SAYS MR BRADSHER THIS ONE IS A GOOD LONGTERM INVESTMENT IF THEY SUCCESSFULLY TURN THINGS AROUND MEANWHILE MR RUNNINGEN EXPECTS MEDICAL CARE'S EARNINGS TO STABILIZE OVER THE NEXT YEAR AFTER MONTHS OF FREEFALLING ALSO THE COMPANY IS SHOWING CONFIDENCE IN ITSELF IN MAY MEDICAL CARE'S BOARD AUTHORIZED THE REPURCHASE OF AS MANY AS 18 MILLION SHARES AND OVER THE PAST FEW MONTHS INSIDERS HAVE SNAPPED UP MORE THAN 26000 SHARES YEAR ENDED DEC 31 1992 SECOND QUARTER JUNE 30 1993 SEPTEMBER SAMESTORE SALES WEIGHED IN ON THE MARKET LAST WEEK HOWEBASED OLD AMERICA STORES TOPPED THE ACTIVE LIST TRADING 26 TIMES ITS AVERAGE THREEMONTH VOLUME ON NEWS THAT SEPTEMBER SAMESTORE SALES OR SALES IN STORES OPEN AT LEAST A YEAR INCREASED 18 IN THE FIRST 35 WEEKS OF THE YEAR SAMESTORE SALES WERE UP 17 THE RETAILER REPORTED OLD AMERICA TRADED AN AVERAGE OF 180000 SHARES A DAY LAST WEEK ITS USUAL VOLUME IS 6900 SHARES THE COMPANY'S STOCK DROPPED MORE THAN 16 TO 12875 RANKING IT AS ONE THE TOP PRICE LOSERS TUESDAY MORNING THE DALLAS DEEPDISCOUNT SPECIALTY RETAILER REPORTED THURSDAY THAT THIRDQUARTER COMPARABLESTORE SALES SLUMPED 2 ALTHOUGH SALES FOR THE PERIOD INCREASED 14 TO 324 MILLION FROM 284 MILLION A YEAR AGO LAST YEAR'S NUMBERS INCLUDE 3 MILLION FROM THE CATALOG OPERATION WHICH HAS SINCE BEEN CLOSED TUESDAY MORNING'S SHARES SHED 3 OR 22 TO CLOSE AT 1050 PANCHO'S MEXICAN BUFFET REPORTED SEPTEMBER SAMESTORE SALES JUMPED 11 LARGELY IN RESPONSE TO A CONVERSION PROGRAM THAT HAS ADDED SOUP SALAD AND DESSERT BARS TO THE COMPANY'S CHAIN OF RESTAURANTS THIS MARKS THE THIRD CONSECUTIVE MONTH OF NEARLY DOUBLEDIGIT SAMESTORE SALES GAINS FOR THE FORT WORTH COMPANY PANCHO'S STOCK ENDED THE WEEK UP 125 CENTS AT 1025 SEPTEMBER SAMESTORE SALES AT SAN ANTONIO'S 50OFF STORES WERE OFF 87 FROM A YEAR AGO THE DISCOUNT RETAILER ALSO REPORTED SAMESTORE SALES DROPS IN JUNE JULY AND AUGUST OF 14 15 AND 18 RESPECTIVELY 50OFF'S STOCK FINISHED THE WEEK OFF 143 AT 6 YEARTODATE 50OFF IS DOWN NEARLY 535 STECKVAUGHN PUBLISHING LOST NEARLY 26 OF ITS VALUE ON THE WEEK THANKS TO LOWERED EARNINGS ESTIMATES FOR THE AUSTIN COMPANY STECKVAUGHN WHICH WENT PUBLIC IN JULY AT 12 CLOSED FRIDAY AT 11875 OFF 4125 ROBERTSON STEPHENS OF SAN FRANCISCO LAST WEEK REDUCED THIRDQUARTER 1993 PERSHARE EARNINGS ESTIMATES BY TWO CENTS TO 21 CENTS AND REDUCED 1993 PROJECTIONS TO 60 CENTS FROM 62 CENTS LIKEWISE HAMBRECHT & QUIST OF SAN FRANCISCO LOWERED THIRDQUARTER ESTIMATES TO 22 CENTS FROM 24 CENTS AND CUT FULLYEAR EARNINGS TO 61 CENTS FROM 63 CENTS 9312290009 931027 TEXAS JOURNAL HEARD IN TEXAS AFTER GOBBLING UP SICK BANKS HEALTHY ONES ARE NEXT ON MENU BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS TEXAS BANKING STOCKS ARE STARTING TO LOOK LIKE MONEY IN THE BANK WHEN TWO MIDWESTERN BANK HOLDING COMPANIES RECENTLY AGREED TO PAY STEEP PREMIUMS FOR TEXAS BANKING FRANCHISES THE VALUE OF THE FEW REMAINING PUBLICLY TRADED BANKING CONCERNS HERE JUMPED AS WELL NOW THE PRESSURE IS INTENSIFYING FOR TEXAS BANKS TO SELL AFTER YEARS OF DEFENDING THEIR INDEPENDENCE AND THE SPECULATION IS MOUNTING ABOUT WHICH WILL GO NEXT THERE ARE A LOT OF BANKS INTERESTED IN GETTING INTO TEXAS OR INCREASING THEIR MARKET SHARE SAYS SANDRA FLANNIGAN A NATIVE TEXAN AND BANKING ANALYST AT MERRILL LYNCH IN NEW YORK THE BUYING IS CERTAIN TO CONTINUE IN FACT BANK PRICES HAVE SPIRALED EVER HIGHER AS TEXAS BECAME ATTRACTIVE AS A BATTLEGROUND FOR INTERSTATE BANKING AND AS BUYERS FOUND FEWER BELEAGUERED BANKS TO GRAB ON THE CHEAP NOW THEY'RE FOCUSING ON HEALTHY INSTITUTIONS IN THE PAST FEW MONTHS ALONE BOATMEN'S BANCSHARES OF ST LOUIS SNAPPED UP FIRST AMARILLO AND MINNEAPOLIS'S NORWEST SNATCHED FIRST UNITED BANK GROUP OF ALBUQUERQUE NM WITH ITS LARGE WEST TEXAS FRANCHISE BOTH COMPANIES AGREED TO PAY MORE THAN TWO TIMES BOOK VALUE OR THE NET EQUITY THE ACQUIRED BANKS SHOW ON THEIR BALANCE SHEETS AS RECENTLY AS 1991 TEXAS BANKS WERE LUCKY TO FETCH BOOK VALUE AFTER YEARS OF BANK FAILURES MERGERS AND BUYOUTS THE LIST OF CANDIDATES IS A SHORT ONE IN FACT THERE ARE ONLY SIX OF NOTE WITH TRUE TEXAS ROOTS SAN ANTONIO'S CULLEN/FROST BANKERS VICTORIA BANKSHARES IN VICTORIA INDEPENDENT BANKSHARES OUT OF ABILENE SURETY CAPITAL IN FORT WORTH AND THE HOUSTON DUO OF CHARTER BANCSHARES AND STERLING BANCSHARES NOT ALL OF THESE REMNANTS OF TEXAS BANKING HOWEVER ARE POTENTIAL TARGETS YET NOTES MS FLANNIGAN SOME MARKETS JUST DON'T HOLD APPEAL SHE SAYS OF THE SURVIVORS WHO APPEAR MOST TASTY THE TOP CHOICE AMONG ANALYSTS IS CULLEN/FROST WITH 35 BILLION IN ASSETS IN THE WAKE OF FIRST AMARILLO'S SALE SPECULATORS IMMEDIATELY JUMPED ON CULLEN'S SHARES BIDDING THE STOCK UP 15 IN A WEEK FIRST BOSTON LABELS CULLEN/FROST A ONEYEAR TAKEOUT CANDIDATE DON'T TELL THAT TO TC FROST CULLEN'S CHAIRMAN AND CHIEF EXECUTIVE THOUGH MANY HAVE COME COURTING EVERYBODY UNDERSTANDS A MERGER IS NOT PART OF OUR PLANS RIGHT NOW HE INSISTS LAST WEEK DONALDSON LUFKIN & JENRETTE DOWNGRADED CULLEN SHARES TO UNATTRACTIVE ARGUING THE STOCK IS OVERVALUED BASED ON TAKEOVER SPECULATION STILL CULLEN IS THE BELLE OF THE BALL AND WHEN IT SELLS IT WILL GO FOR MORE THAN TWO TIMES BOOK MAYBE BETTER THAN 25 SAYS FRANK ANDERSON AN ANALYST AT STEPHENS INC IN LITTLE ROCK ARK BASED ON CULLEN'S BOOK VALUE AT THE END OF THE THIRD QUARTER AN OFFER OF 25 TIMES BOOK WOULD MEAN A SHARE VALUE IN THE HIGH 50S NEARLY 75 ABOVE TODAY'S PRICE JUST BEHIND CULLEN IN TERMS OF DESIRABILITY IS VICTORIA BANKSHARES A BANK WITH 18 BILLION IN ASSETS THAT HAS CARVED OUT THE STATE'S MOST EXTENSIVE COMMUNITYBANKING NETWORK FOCUSING ON THE SMALL TOWNS POPULATING SOUTHCENTRAL TEXAS ANALYSTS SAY THE BANK'S PROXIMITY TO MEXICO PARTICULARLY UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT AND ITS MARKET SHARE AVERAGE OF 40 OR BETTER IN THE COMMUNITIES IT SERVES MAKES IT ATTRACTIVE TO SUITORS LOOKING TO EXPAND WITHIN THE DIAMOND OF LAND BORDERED BY HOUSTON AUSTIN SAN ANTONIO AND CORPUS CHRISTI THE ABSENCE OF METROPOLITAN EXPOSURE THOUGH MEANS VICTORIA WON'T SELL FOR THE PREMIUM CULLEN COULD COMMAND ANALYSTS CONTEND IF RECENT BANK SALES ARE ANY INDICATION THEN VICTORIA'S BOOK VALUE AT THE END OF THE SECOND QUARTER SUGGESTS A PERSHARE PURCHASE PRICE IN THE LOW 40S FIRST BOSTON WHICH ALSO PROJECTS A SALE OF VICTORIA WITHIN THE YEAR ANTICIPATES A PRICE OF ABOUT 37 A SHARE VICTORIA SHARES CURRENTLY TRADE IN THE HIGH 20S OF THE OTHER BANKS ANALYSTS ARGUE THEY'RE TOO SMALL TO COMMAND SERIOUS ATTENTION JUST YET CHARTER WHICH IS 27OWNED BY NATIONSBANK OF CHARLOTTE NC AND STERLING FOCUS MAINLY ON HOUSTON WHERE MANY OUTOFSTATE PLAYERS HAVE WELLESTABLISHED MOORINGS THEY MIGHT BE ATTRACTIVE LATER ON AS THE BIG BANKS LOOK TO FILL IN BETWEEN THEIR MARKETS OR LOOK TO INCREASE MARKETS SHARE WHERE THEY ARE MS FLANNIGAN SAYS ARGUABLY THERE COULD BE MANY BUYERS FOR TEXAS BANKS NEARLY 40 DOMESTIC AND FOREIGN BANKS BID ON NEW FIRST CITY AFTER THE FDIC SEIZED AND THEN SOLD THE HOUSTON BANK'S ASSETS BUT ANALYSTS SAY MAJOR BIDDERS LIKELY WILL BE THOSE ALREADY IN STATE OR JUST ACROSS THE BORDER IN THE QUEST FOR CULLEN/FROST MR ANDERSON AND THOMAS H HANLEY AT FIRST BOSTON CALL BANC ONE IN COLUMBUS OHIO THE FRONTRUNNER THE COMPANY'S PHILOSOPHY OF RETAINING PRESENT MANAGEMENT IS A PLUS WITH CULLEN MR ANDERSON SAYS BOATMEN'S ISN'T OUT OF THE QUESTION EITHER IT HAS DISPLAYED A KEEN INTEREST IN TEXAS WITNESSED BY ITS AMARILLO ACQUISITION ITS BID ON NEW FIRST CITY AND A SUBSEQUENT PURCHASE OF A NEW FIRST CITY BRANCH IN EL PASO FROM TEXAS COMMERCE BOATMEN'S IS DEFINITELY NOT THROUGH WITH TEXAS PREDICTS DAVID SLOAN ASSISTANT PORTFOLIO MANAGER FOR SIFE TRUST FUND A WALNUT CREEK CALIF BANK SECTOR FUND AS FOR VICTORIA MR HANLEY SUGGESTS INTEREST FROM DETROIT'S COMERICA OR NATIONSBANK OR POSSIBLY FROM GF BANAMEX ACCIVAL OR GF BANCOMER MEXICO'S TWO LARGEST BANKS JUST LOOK AT THE MAP OF VICTORIA'S BRANCH LOCATIONS AND YOU SEE THE INTEREST A MEXICAN BANK WOULD HAVE HE SAYS NOTING VICTORIA'S STRONG PRESENCE NEAR THE BORDER VICTORIA'S LOAN GROWTH COULD DOUBLE WITH MEXICAN TRADE TO BE SURE THE ACQUIRERS ARE OFFERING THESE RICH PRICES BECAUSE FOR THE MOST PART THEY ARE PAYING IN STOCK NOT CASH MEANING THE STRENGTH OF THEIR STOCK ALLOWS THEM TO PITCH HIGHER BIDS WITHOUT SIGNIFICANTLY DILUTING SHARES OUTSTANDING 9312290159 930929 TEXAS JOURNAL LETTER TO THE EDITOR REGARDING THE SEPT 22 ARTICLE ON TEXAS CONSUMERS WHAT IS A TEXAS CONSUMER ANYWAY OF COURSE TEXANS USE PLASTIC MILK JUGS WE FILL THEM WITH WATER AND FREEZE THEM TO CARRY IN OUR ICE CHESTS AND EVERYONE KNOWS THAT ALL TEXANS CARRY ICE CHESTS THE EXTRA ADVANTAGE IS THAT WHEN IT MELTS YOU HAVE DRINKING WATER WITH YOU WHAT'S HARD TO FATHOM ABOUT THAT NATURALLY IN THE FALL I SWITCH TO PAPER CARTONS BECAUSE THEY CAN BE USED TO FREEZE DOVE AND QUAIL AND THEY STACK BETTER THAN THE PLASTIC I'M ENJOYING THE TEXAS SECTION 9312290150 930922 TEXAS JOURNAL OIL EXECUTIVE STEERS COURSE FOR PORT MERGERS BY ROBERT JOHNSON ONE OF TEXAS' MOST POWERFUL OIL AND GAS BARONS IS WORKING BEHIND THE SCENES TO GET TWO OF THE STATE'S BUSIEST AND MOST COMPETITIVE PORTS HOUSTON AND GALVESTON TO MERGE GEORGE P MITCHELL CHAIRMAN PRESIDENT AND 60OWNER OF MITCHELL ENERGY & DEVELOPMENT CORP IS URGING OFFICIALS IN BOTH PORTS TO COMBINE CERTAIN OPERATIONS INCLUDING MARKETING CARGO HANDLING AND POSSIBLY SHIP REPAIR THE TWO PORTS HAVE BEEN BATTLING OVER CUSTOMERS FOR YEARS MR MITCHELL SAYS HIS PROGRESS IN PRIVATE MEETINGS WITH VARIOUS PORT OFFICIALS HAS BEEN SLOW MAYBE IN FIVE YEARS HE LAMENTS BUT THERE ARE INDICATIONS THAT THINGS MAY MOVE FASTER THAN THAT THE FACT THAT MR MITCHELL IS IN TOUCH WITH THE BUSINESS WORKINGS OF BOTH COMMUNITIES IS SOMETHING WE CONSIDER VERY POSITIVE SAYS A PORT OF HOUSTON OFFICIAL WHAT'S MORE THE GALVESTON WHARVES BOARD WHICH RUNS THAT CITY'S PORT VOTED IN JULY TO SEEK A JOINT MARKETING ARRANGEMENT WITH THE PORT OF HOUSTON IN WHICH THE TWO HARBORS WOULD COOPERATE IN ATTRACTING IMPORTS HOUSTON PORT OFFICIALS SAY THEY RECENTLY RECEIVED A LETTER FROM THEIR GALVESTON COUNTERPARTS TO DISCUSS A WORKING RELATIONSHIP AND HAVE RESPONDED THAT THEY ARE WILLING TO MEET THE TWO PORTS NEED EACH OTHER SAYS MR MITCHELL ALTHOUGH HOUSTON IS THE NATION'S THIRDLARGEST PORT IN TOTAL TONNAGE BEHIND NEW YORK AND NEW ORLEANS IT NEEDS AN ESTIMATED 500 MILLION IN DEEPENING AND WIDENING WORK GALVESTON WHICH LAGS BEHIND HOUSTON IN FACILITIES AND EQUIPMENT FOR CERTAIN REPAIR AND CARGO HANDLING HAS AMPLE DEEPWATER ANCHORING SPACE SOME GALVESTON OFFICIALS CLOSE TO THE SITUATION SAY THAT ONE OF MR MITCHELL'S MOTIVATIONS IS TO REDUCE THE NUMBER OF CARGO SHIPS DOCKING IN GALVESTON NEAR HIS NEW HARBOR HOUSE HOTEL WHERE HE WOULD LIKE TO SEE A CASINO GAMBLING BOAT MR MITCHELL'S RESPONSE A PORT MERGER WOULD BE GOOD FOR EVERYONE 9312290098 930929 TEXAS JOURNAL PUBLIC HOSPITALS TRY TO GET IN SHAPE FOR HEALTH REFORM BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL TEXAS' PUBLIC HOSPITALS TRADITIONALLY THE HEALTHCARE PROVIDERS TO THE POOR ARE GEARING UP TO COMPETE IN THE NEW ENVIRONMENT OF A NATIONAL HEALTHCARE PLAN PRESIDENT CLINTON'S PROPOSAL WOULD GIVE ALL CITIZENS HEALTHINSURANCE CARDS THAT WOULD ALLOW THEM IN EFFECT TO CHOOSE AMONG PUBLIC AND PRIVATE HOSPITALS THAT WOULD AFFECT PUBLIC HOSPITALS NATIONWIDE BUT THE STAKES ARE HIGHER IN TEXAS THE STATE HAS THE HIGHEST PERCENTAGE OF UNINSURED RESIDENTS SO PUBLIC INSTITUTIONS HERE HAVE MORE PATIENTS THAT COULD BE LOST TO PRIVATE HOSPITALS AS A RESULT PUBLIC HOSPITALS ARE CUTTING COSTS TEACHING STAFF TO TREAT PATIENTS WITH MORE RESPECT AND HIRING CONSULTANTS TO MAKE CARE MORE CONVENIENT AND SEVERAL PUBLIC HOSPITALS SUCH AS PARKLAND MEMORIAL HOSPITAL IN DALLAS ARE SPENDING MILLIONS ON NEW CLINICS TO OFFER BASIC CARE IN NEIGHBORHOODS WHERE CUSTOMERS LIVE PUBLIC HOSPITALS ARE SEEKING TO BECOME MORE PATIENTCENTERED THOSE THAT DON'T WILL BE BIG LOSERS SAYS RON ANDERSON HEAD OF PARKLAND MEMORIAL WE WANT TO BE THE HOSPITAL OF CHOICE WHEN PATIENTS HAVE A CHOICE OF COURSE HEALTHCARE REFORM COULD BENEFIT PUBLIC HOSPITALS BY GIVING THEIR TRADITIONAL PATIENT BASE MONEY TO SPEND BUT IN AN EARLYWARNING SIGN OF WHAT COULD HAPPEN A GROWING NUMBER OF TEXAS' POOR HAVE CHOSEN TO GIVE BIRTH AT PRIVATE HOSPITALS SINCE MEDICAID REQUIREMENTS WERE LOOSENED SEVERAL YEARS AGO BECAUSE UNIVERSAL COVERAGE MAY CALL INTO QUESTION THE ROLE OF PUBLIC HOSPITALS ADMINISTRATORS ARE ALREADY LOBBYING TO PRESERVE STATE AND LOCAL FUNDING WHICH INCLUDES MILLIONS IN PROPERTY TAXES THEY SAY THE PUBLICHOSPITAL SYSTEM WILL REMAIN AN IMPORTANT SAFETY NET IF COMPENSATION RATES FOR THE NATIONAL HEALTH PLAN AREN'T HIGH ENOUGH TO LET THE POOR AFFORD PRIVATE HOSPITALS AND TEXAS' PUBLIC HOSPITALS OFFER TOPNOTCH SPECIALTY SERVICES SUCH AS TRAUMA CARE AND DOCTORTRAINING PROGRAMS FOR AREA MEDICAL SCHOOLS SAYS DAVID SMITH A PHYSICIAN WHO HEADS THE STATE DEPARTMENT OF HEALTH WE CAN'T THROW THE BABY OUT WITH THE BATH WATER AND SAY WE DON'T NEED THESE HOSPITALS MOREOVER THE CLINTON PLAN MAKES ONLY PASSING REFERENCE TO ILLEGAL ALIENS WHO SEEK MEDICAL CARE RESPONSIBILITY FOR THEM ALREADY FALLS HEAVILY ON TEXAS' PUBLIC HOSPITALS AND WILL PROBABLY CONTINUE TO DO SO UNDER HEALTHCARE REFORM SAYS PAT COLE GOV ANN RICHARDS'S HEALTHCARE ADVISER MOSTLY THOUGH PUBLIC HOSPITALS WHICH FOR YEARS HAVE BEEN BRACING FOR SOME KIND OF BROADBASED HEALTHCARE REFORM ARE FOLLOWING A STRATEGY MUCH LIKE THEIR PRIVATE COUNTERPARTS THEY ARE STRIVING TO PROVIDE A BETTER PRODUCT CONTAIN COSTS AND INCREASE REVENUE THEY ARE DEVELOPING MANAGEDCARE PLANS BOTH TO PROVIDE NEW REVENUE AND TO SAVE ON EMERGENCYROOM TREATMENT MANY ARE NEGOTIATING REFERRAL AGREEMENTS WITH PRIVATE HOSPITALS DALLAS'S PARKLAND HOSPITAL NOT ONLY HAS SOUGHT TO IMPROVE ITS CUSTOMER SERVICE BUT ALSO IS RENOVATING ITS MAIN FACILITY AND HONING ITS SPECIALIZED SKILLS IN TRAUMA CARE AND TREATMENT FOR BURNS AND EPILEPSY BEXAR COUNTY'S MEDICAL CENTER HOSPITAL IN SAN ANTONIO HAS RECRUITED MORE PRIVATELY INSURED AND SELFPAYING PATIENTS NOW AT AN UNUSUALLY HIGH 20 THE HARRIS COUNTY HOSPITAL DISTRICT HAS HIRED A CONSULTANT TO INCREASE EFFICIENCY AND SUGGEST WAYS TO MAKE THE HOSPITAL EXPERIENCE MORE PLEASANT FOR PATIENTS THE HOSPITAL IS CROSSTRAINING STAFF MEMBERS TO DO MULTIPLE TASKS SO PATIENTS ARE CONFRONTED BY A LIMITED NUMBER OF STRANGERS EMPLOYEES ARE BEING TAUGHT TO BE COURTEOUS AND MAKE THE PATIENT THE CENTER OF THE ACTIVITY SAYS LOIS MOORE PRESIDENT OF THE DISTRICT OTHER HOSPITALS STRAPPED FOR FUNDS ARE DOING LITTLE MORE THAN HOPING THEIR PATIENTS REMAIN LOYAL WE HAVE A TRACK RECORD OF TREATING PEOPLE WITH DIGNITY AND RESPECT THAT FORPROFIT HOSPITALS DO NOT SAYS PETE DUARTE CHIEF EXECUTIVE OF THOMASON GENERAL HOSPITAL IN EL PASO WHO'S BEEN TAKING CARE OF THE POOR ALL THESE YEARS THEY HAVEN'T BEEN WE HAVE 9312290088 930922 TEXAS JOURNAL HEARD IN TEXAS INVESTORS SEEKING THE BIG ENCHILADA COULD TURN TO MEXICAN FOOD CHAINS BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS TASTE BUDS NEVER LIE AND RIGHT NOW THOSE LITTLE FLAVOR SAVORERS ARE EXCLAIMING EVERYBODY SALSA THAT'S BECAUSE MEXICAN FOOD IT SEEMS HAS COMMANDEERED THE AMERICAN PALATE IT IS REPORTS THE NATIONAL RESTAURANT ASSOCIATION THE FASTESTGROWING SEGMENT OF THE QUICKSERVICE FOOD INDUSTRY A TREND WITNESSED BEST IN TEXAS BY THE NUMBER OF CANTINAS CATERING TO SOUTHOFTHEBORDER TASTES IN FACT THE STATE IS HOME TO MORE THAN HALF OF THE COUNTRY'S PUBLICLY TRADED MEXICAN FOOD CHAINS BUT FOR INVESTORS LOOKING TO SEASON THEIR PORTFOLIO WITH MEXICAN EATERY STOCKS TAKE HEED THAT JUST AS GREEN CHILES DIFFER MARKEDLY FROM THEIR RED COUSINS NOT ALL THESE CHAINS ARE EQUALLY SPICED SO WHERE TO INVEST LIKE TASTES IN FOOD IT ALL DEPENDS ON WHAT YOU'RE LOOKING FOR LET'S START WITH TACO CABANA MANY ANALYSTS' PICK FOR THE MOST POTENTIAL THE COMPANY RENOWNED FOR ITS PEPTOBISMOLPINK STUCCO WALLS AND AD CAMPAIGNS SUCH AS TOOT IF YOU LIKE OUR BORRACHO BEANS CURRENTLY OPERATES 104 STORES MAINLY IN TEXAS IT ALSO HAS A PRESENCE IN CALIFORNIA AND NEVADA AND THROUGH ITS ACQUISITION OF COMPETITOR TWO PESOS THIS YEAR HAS STORES IN LOUISIANA MINNESOTA GEORGIA AND OKLAHOMA IN JULY THE COMPANY COMPLETED AN OFFERING OF ONE MILLION SHARES PRICED AT 2425 EACH THE PROCEEDS OF WHICH WLL FINANCE EXPANSION PRIMARILY IN TEXAS WHERE TACO CABANA HAS TREMENDOUS OPPORTUNITIES SAYS MICHAEL G MUELLER WHO TRACKS THE RESTAURANT CHAIN FOR MONTGOMERY SECURITIES IN A RESEARCH REPORT HE ESTIMATES THE MARKET POTENTIAL AT WELL OVER 1000 UNITS NATIONALLY AND INTERNATIONALLY MEXICAN FAST FOOD OF COURSE IS NOTHING NOVEL PEPSICO'S TACO BELL UNIT HAS BEEN RUNNING TO THE BORDER FOR MANY YEARS WHAT SETS TACO CABANA APART HOWEVER IS FOOD QUALITY WHAT STEPHENS INC DIRECTOR OF RESEARCH ALISON BISNO CALLS THAT DIFFERENCE BETWEEN XEROXED TEXMEX AND AUTHENTIC DELICIOUS FRESH TEXMEX ALTHOUGH TACO CABANA IS OSTENSIBLY A FASTFOOD JOINT INDEED 40 OF ITS BUSINESS IS CONDUCTED THROUGH A DRIVETHROUGH WINDOW IT OFFERS A QUAINT MEXICAN OUTDOOR PATIO FOR DINEIN EATERS AND SERVES LIQUOR BEER AND FROZEN MARGARITAS A RARITY IN THE FASTFOOD SECTOR AS A RESULT TACO CABANA NOT ONLY CAPTURES THE ONTHEGO CROWD BUT ALSO THE FOLKS WHO WANT SITDOWN QUALITY FAJITAS WITH A MARGARITA WITHOUT THE WAIT AND PRICE OF A TRADITIONAL RESTAURANT AS SUCH MR MUELLER NOTES IN HIS REPORT TACO CABANA'S SALES PER SQUARE FOOT TOP 600 INDUSTRY LEADER MCDONALD'S HE REPORTS MANAGES ONLY 400 A SQUARE FOOT PANCHO'S AND EL CHICO OFFER SIMILAR EXCITEMENT BUT FROM A DIFFERENT PERSPECTIVE BOTH ARE ATTEMPTING TO REVITALIZE AND REMAKE THEMSELVES AFTER YEARS OF WEAKNESS AND MISDIRECTION FORT WORTH'S PANCHO'S PIONEERED THE ALLYOUCANEAT MEXICAN BUFFET IN THE LATE 1950S WHEN RECENTLY DECEASED FOUNDER JESSE ARRAMBIDE OPENED AN EATERY IN EL PASO EL CHICO DATES TO 1940 WHEN THE CUELLAR BROTHERS CHRISTENED THEIR FIRST FAMILY MEXICAN FOOD RESTAURANT IN DALLAS'S OAK LAWN AREA TODAY EL CHICO OPERATES 86 RESTAURANTS ACROSS THE SOUTH WHILE PANCHO'S RUNS 66 RESTAURANTS IN THE SIX STATES FROM ARIZONA TO LOUISIANA THROUGH THE YEARS BOTH RESTAURANTS SAW A DECLINE IN THEIR FRANCHISE PANCHO'S CONCEPT GREW STALE AS VALUEPRICED COMPETITORS CROPPED UP AND AS FASTFOOD OUTLETS AND MIDPRICED RESTAURANTS SUCH AS BRINKER INTERNATIONAL'S CHILI'S ADDED TEXMEX SPECIALTIES TO THEIR MENUS EL CHICO RAN INTO PROBLEMS IN THE MID1980S WHEN MANAGEMENT BEGAN EXPERIMENTING WITH ILLPERFORMING CONCEPT RESTAURANTS SUCH AS CUELLAR'S CAFE AND LUPITA'S IN THE PAST YEAR HOWEVER BOTH CHAINS UNDERWENT A MAKEOVER OF SORTS EL CHICO HIRED A NEW MANAGEMENT TEAM THAT REFOCUSED ON ITS NAMESAKE RESTAURANTS AND BEGAN AN EXPANSION THAT WILL ADD 18 UNITS IN THE NEXT TWO YEARS AS A RESULT SAYS DENNIS TELZROW AT PRINCIPAL/EPPLER GUERIN & TURNER WE'VE BEGUN SEEING A DRAMATIC IMPROVEMENT IN OPERATING MARGINS AND SAMESTORE SALES HAVE SEEN INCREASES OF 3 AND 4 IN THE PAST FEW MONTHS FOR THAT REASON AND BECAUSE OF THE 25 EARNINGS GROWTH HE EXPECTS MR TELZROW ANTICIPATES EL CHICO SHARES COULD DOUBLE IN THE NEXT YEAR ANALYSTS LIKEWISE HAVE HIGH HOPES FOR PANCHO'S WHICH BEGAN SEEING SAMESTORE SALES EROSION IN THE LATE 1980S IN FISCAL 1991 AND 1992 SAMESTORE SALES DROPPED 46 AND 37 RESPECTIVELY BUT IN AUGUST THE COMPANY'S SAMESTORE SALES ROSE 9 AFTER JULY'S SAMESTORE SALES GAINED 10 THIS IS IN LARGE PART BECAUSE OF NEW SOUP SALAD AND DESSERT BARS AS WELL AS A NEW AD CAMPAIGN AND BRIGHTER STORES THE ONLY WAY YOU'LL GET BURNED WITH PANCHO'S IS IF YOU EAT TOO MANY ENCHILADAS SAYS ROBERT STOVALL PRESIDENT OF STOVALL/TWENTY FIRST ADVISERS AND WHO HAS SNATCHED UP SEVERAL THOUSAND PANCHO'S SHARES ON THE BORDER CAFES ON THE OTHER HAND IS IN WHAT ANALYSTS CALL A WAITANDSEE MODE THE DALLAS CHAIN OF TEXMEX CANTINAS OPENED IN THE LATE 1980S AND IS JUST NOW BEGINNING TO EXPORT ITS FARE OF FAJITAS AND CHICKEN FRIED STEAK BEYOND DALLAS AND HOUSTON RECENTLY OPENING COMPANYOWNED STORES IN DENVER AND FRANCHISED STORES IN FLORIDA AND TENNESSEE THE COMPANY HAS PLANS TO OPEN FIVE MORE THIS YEAR AND AS MANY AS EIGHT NEXT YEAR INSTATE AS WELL AS IN COLORADO TENNESSEE AND MISSOURI EQUITABLE SECURITIES ANALYST ROBIN DELMER NOTES ON THE BORDER HAD SOME RECENT BAD LUCK NOTABLY DOWNTOWN ROAD CONSTRUCTION AND RENOVATION OF THE DALLAS CONVENTION CENTER THAT HAS HURT SAMESTORE SALES FOR TWO DALLAS UNITS AND WHILE ITS THREE NEW STORES ONE IN PLANO AND TWO IN DENVER RECORDED IN SUCCESSION THE COMPANY'S HIGHEST OPENINGWEEK SALES THERE'S WEAKNESS IN THE HOUSTON MARKET WHERE COMPETITION HAS DEPRESSED CUSTOMER TRAFFIC IN THE FISCAL SECOND QUARTER SAMESTORE SALES FELL 6 IN THE YEARTODATE SAMESTORE SALES DROPPED 8 IT'S A GOOD COMPANY BUT THEY'RE JUST TOO YOUNG RIGHT NOW SAYS MR DELMER WHO RATES THE STOCK A HOLD HE HAS SUSPENDED 1994 EARNINGS ESTIMATES UNTIL ON THE BORDER'S NONTEXAS RESTAURANTS PROVE THEIR STAYING POWER ON THE BORDER DOESN'T ARGUE IF I WERE AN ANALYST I'D THINK THE SAME WAY SAYS RAY YOAKUM THE COMPANY'S CHIEF FINANCIAL OFFICER SIX MONTHS OF SALES FIGURES FOR THE NEW RESTAURANTS DOES NOT A LIFETIME MAKE IT'S AN OPENANDSHUT CASE FOR SUN COAST PLASTICS THE DALLAS MAKER OF CAPS AND CLOSURES THAT SEAL CONSUMER PRODUCTS SHUT OVER THE MOSTRECENT THREE YEARS SUN COAST HAS COOKED UP EARNINGS GROWTH IN EXCESS OF 480 BEHIND THE EARNINGS MOMENTUM IS WHAT THE COMPANY CALLS PHENOMENAL GROWTH IN ITS CLOSURES BUSINESS WHERE SALES JUMPED 28 TO ABOUT 19 MILLION OVER THE PAST TWO YEARS THE BACKLOG OF ORDERS FOR CLOSURES HAS DOUBLED TO 40 MILLION TOO SUN COAST SPENT THE PAST FEW YEARS PARING DEBT AND IN APRIL NAMED AS PRESIDENT AND CHIEF EXECUTIVE R CARTER PATE WHO EARLIER SERVED AS TRUSTEE LIQUIDATING THE NELSON BUNKER HUNT ESTATE IN THE PAST YEAR SUN COAST'S STOCK HAS CLIMBED 70 TO 975 9312290084 930922 TEXAS JOURNAL WHAT IS A TEXAS CONSUMER ANYWAY A UNIQUE BREED THEY HATE ENGLISH MUFFINS BUT LOVE HAIR SPRAY BY KATHLEEN DEVENY STAFF REPORTER OF THE WALL STREET JOURNAL THE TEXAS CONSUMER IS A BREED APART WHILE COLA WARS RAGE IN OTHER REGIONS NATIONAL ALSORAN DR PEPPER EASILY OUTSELLS PEPSI IN DALLAS AND HOUSTON FEW PEOPLE ELSEWHERE IN THE COUNTRY SEEM TO CARE MUCH ABOUT QUAKER OATS CO'S WOLF BRAND CHILI HERE IT FLIES OFF GROCERS' SHELVES AND LET THE REST OF AMERICA INDULGE ITS SWEET TOOTH WITH HAAGENDAZS OR BEN & JERRY'S TEXANS FAVOR BLUE BELL ICE CREAM AMERICANS' GROCERY LISTS ARE GROWING EVER MORE HOMOGENEOUS BUT TEXANS STILL DISPLAY A FIERCE INDEPENDENCE WHEN THEY GET BEHIND A SHOPPING CART THAT SPIRIT IS PARTLY DUE TO THE STATE'S UNIQUE DEMOGRAPHICS BUT EXPERTS SAY THE ATTITUDE ALSO REFLECTS TEXANS' HEALTHY RESPECT FOR INDEPENDENCE IN GENERAL TEXANS THEY SAY HAVE DEVELOPED A CULTURE AND A PASSEL OF SHOPPING HABITS THAT REMAIN DISTINCT FROM THE REST OF THE NATION TEXANS TEND TO SEE THE STATE BOUNDARY AS MORE THAN AN ADMINISTRATIVE ONE SAYS TR FEHRENBACH A TEXAS HISTORIAN IN SAN ANTONIO THIS IS AN AMERICAN SUBCULTURE NOT THAT TEXAS IS COMPLETELY IMMUNE FROM NATIONAL FADS ALTHOUGH TEXANS FOR INSTANCE STILL CONSUME FAR LESS PREPARED ICED TEA THAN CONSUMERS ELSEWHERE THE PRODUCT NOW RANKS AS ONE OF THE FASTESTGROWING CATEGORIES IN TEXAS SUPERMARKETS ACCORDING TO SCANNER DATA GATHERED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE FRESH BAGELS ALSO ARE RAPIDLY GAINING FANS IN TEXAS MARKETS YET TEXANS RETAIN PLENTY OF DISTINCTIVE PREFERENCES SOME ARE PERHAPS PREDICTABLE SUCH AS A PENCHANT FOR PICANTE SAUCE OR A BENT FOR BRISKET OTHERS THOUGH ARE HARDER TO FATHOM TEXANS LEAN MORE THAN OTHER AMERICANS TO MILK IN PLASTIC JUGS FOR EXAMPLE RATHER THAN PAPER CARTONS THEY PURCHASE AN INORDINATE AMOUNT OF SAUSAGE AND CHARCOAL BUT THEY DON'T PARTICULARLY CARE FOR PASTA AND ENGLISH MUFFINS FORGET IT IN FACT EVEN WHEN TEXANS DO JUMP ON A NATIONWIDE BANDWAGON THEY OFTEN DO IT IN THEIR OWN WAY CONSIDER BAGELS WHILE THEY'RE GAINING POPULARITY HERE THE REASON ISN'T SO MUCH THAT TEXANS HAVE CHANGED RATHER IT'S THE BAGELS THAT HAVE CHANGED TRISH DEBERRY A 28YEAROLD PUBLICRELATIONS EXECUTIVE IN SAN ANTONIO IS A CASE IN POINT SHE SAYS SHE HAS DISCOVERED FRESH BAGELS WITHIN THE PAST FIVE YEARS AS MORE VARIETIES HAVE BECOME AVAILABLE AMONG HER FAVORITES BLUEBERRY AN ACCURATE PORTRAIT OF THE TEXAS CONSUMER HOWEVER MUST START AT THE TOP HAIR TEXANS SPEND FAR MORE ON HAIRCARE PRODUCTS THAN CONSUMERS NATIONALLY SUPERMARKET SHOPPERS IN DALLAS FOR INSTANCE BUY 55 MORE HAIR COLORING THAN THE NATIONAL AVERAGE WHILE CONSUMERS IN SAN ANTONIO SNAP UP 161 MORE INFORMATION RESOURCES REPORTS SHAMPOO SELLS WELL AND HAIR SPRAYS AND STYLING GELS ARE VERY BIG IN TEXAS EVEN DALLAS COWBOYS COACH JIMMY JOHNSON RECENTLY CONCEDED ON NATIONAL TELEVISION THAT HE USES A LITTLE HAIR SPRAY ON OCCASION HAIRDOS AREN'T THE ONLY GROOMING FOCUS TEXANS ALSO BUY A DISPROPORTIONATE AMOUNT OF COSMETICS DALLAS WOMEN BUY 143 MORE MAKEUP THAN THE TYPICAL US CONSUMER WHILE RESIDENTS OF WEST TEXAS BUY 144 MORE FACIAL MOISTURIZERS BODY LOTIONS AND EVEN DIET PILLS ARE STRONG SELLERS HERE WOMEN IN DALLAS BUY 63 MORE HOSIERY THAN THE NATIONAL AVERAGE WHILE HOUSTONIANS BUY 26 MORE EVERYBODY HERE IS REALLY INTO FASHION AND MAKEUP GOES RIGHT ALONG WITH IT SAYS 23YEAROLD PRISCILLA ORTIZ WHO SELLS LANCOME COSMETICS IN A DILLARD'S DEPARTMENT STORE IN SAN ANTONIO MATCHING SHOES AND HANDBAGS SHE ADDS ARE DE RIGUEUR I'VE STARTED DOING IT EVEN THOUGH IT'S EXPENSIVE MS ORTIZ SAYS YOU STAND OUT IF YOU DON'T COMPLY MARKET RESEARCHERS ATTRIBUTE SOME TEXAS QUIRKS TO THE STATE'S DEMOGRAPHICS WHICH DIFFER SIGNIFICANTLY FROM THE NATION AS A WHOLE HISPANIC HOUSEHOLDS ARE NEARLY THREE TIMES AS PREVALENT IN TEXAS TEXANS ARE ALSO YOUNGER THAN THE POPULATION IN GENERAL ACCORDING TO A STUDY BY MARKET METRICS INC A LANCASTER PA MARKETINGRESEARCH FIRM AND TEXANS ARE MORE LIKELY TO HAVE LARGE FAMILIES WITH MORE THAN SIX HOUSEHOLD MEMBERS AND YOUNG CHILDREN AT HOME THE COUNTY MOST REPRESENTATIVE OF THAT STATE PROFILE LUBBOCK ONE RESULT OF COURSE IS THAT TEXANS EAT MORE MEXICAN FOODS THAN CONSUMERS NATIONALLY EVEN IN NEIGHBORHOODS WITHOUT MANY HISPANIC RESIDENTS KROGER SUPERMARKETS IN TEXAS SELL PICANTE SAUCE AND PINTO BEANS BY THE GALLON HEB GROCERY CO'S CAVERNOUS MARKETPLACE STORE NEAR SAN ANTONIO STOCKS PLENTY OF MEXICAN FOODS EVEN THOUGH ITS CLIENTELE IS QUITE DIVERSE ITS PRODUCE SECTION FEATURES A SEA OF DRIED PEPPERS AND THE STORE BOASTS A GLASSENCLOSED MACHINE THAT CHURNS OUT FRESHLY BAKED TORTILLAS AND WHILE TEXAS CONSUMERS ARE INCREASINGLY HEALTHCONSCIOUS OLD HABITS ARE APPARENTLY DYING HARD FOLKS HERE STILL LOAD UP ON WHOLE BEEF BRISKETS THE FATLADEN 10TO15 POUND SLABS OF MEAT THAT ARE TYPICALLY COOKED FOR HOURS ON THE BARBECUE TEXANS BUY CLOSE TO 75 MILLION POUNDS OF BRISKET ANNUALLY NEARLY THREE TIMES AS MUCH AS CONSUMERS IN THE WHOLE NORTHEASTERN REGION THE ONLY OTHER PLACE WHERE PEOPLE BUY BRISKET IN ANY QUANTITY WE SELL TONS OF IT SAYS JERRY BLAZEK WHO MANAGES A BIG KROGER STORE IN KELLER MR BLAZEK ISN'T EXAGGERATING DESPITE A GENERAL TREND TOWARD POULTRY AND FRESH SEAFOOD HIS CUSTOMERS ROUTINELY CART OFF 8000 TO 10000 POUNDS OF BRISKET DURING EACH OF THE SIX WEEKLONG SPECIALS HE RUNS ANNUALLY TEXAS CONSUMERS EAT MORE MEAT HE SAYS WITH A SHRUG OTHER STEREOTYPES DON'T HOLD AS TRUE WHILE TEXANS LIKE SPICY DISHES THEY DON'T NECESSARILY WANT THE HOTTEST PACE FOODS CO THE SAN ANTONIO MAKER OF PICANTE SAUCES AND SALSAS SELLS MORE OF ITS HOTTEST SAUCES IN MINNEAPOLIS THAN IN TEXAS PACE IS EVEN ROLLING OUT AN EXTRAMILD VERSION IN WESTERN STATES ONLY AS PART OF A LARGER EFFORT TO ENCOURAGE NEW USES OF THE CONDIMENT AMONG THE CULINARY CREATIONS PACE FORESEES SPAGHETTI TOPPED WITH PICANTE SAUCE AND SALADS DRESSED WITH SALSA THAT MAY SOUND LIKE A STRETCH BUT PACE CLAIMS A SIGNIFICANT ADVANTAGE WITH TEXAS CONSUMERS TEXANS HAVE A SOFT SPOT FOR LOCAL PRODUCTS TO TAP THAT SENTIMENT CURRENT TELEVISION ADS FOR PACE TOUT THE BRAND'S TEXAS HERITAGE WHILE POKING FUN AT AN EASY TARGET NEW YORKERS IN ONE TYPICAL SPOT COWBOYS THREATEN TO STRING UP A CAMP COOK WHO SLIPPED THEM PICANTE SAUCE MADE IN NEW YORK CITY RATHER THAN IN SAN ANTONIO WHERE PEOPLE KNOW WHAT PICANTE SAUCE IS SUPPOSED TO TASTE LIKE PRODUCTS MADE IN TEXAS ARE VERY POPULAR HERE SAYS MATTHEW J MOHR MANAGER OF CONSUMER MARKETING FOR PACE WE CALL THAT NATIONAL PRIDE HERE THAT SENTIMENT MAY HELP EXPLAIN TEXANS' AFFECTION FOR WOLF BRAND CHILI WITHOUT BEANS OF COURSE THE 97YEAROLD BRAND WAS ACQUIRED BY CHICAGOBASED QUAKER OATS IN 1956 BUT EVEN THOUGH IT IS SOLD IN 14 STATES TEXAS STILL ACCOUNTS FOR 80 OF SALES THE BRAND IS NOW MANUFACTURED IN DALLAS ALONG WITH QUAKER'S VAN CAMP'S BEANS AND GATORADE SPORTS DRINKS BUT THE COMPANY PLAYS UP THE BRAND'S ORIGINS IN CORSICANA WHERE IT WAS ORIGINALLY SOLD FOR FIVE CENTS A BOWL FEW NATIONAL MARKETERS HAVE BEEN AS SUCCESSFUL IN INFUSING THEIR BRANDS WITH TEXAS MYSTIQUE AS THE WRANGLER CO UNIT OF VF CORP OF WYOMISSING PA WRANGLER BASED IN GREENSBORO NC ESTIMATES ITS SHARE OF THE TEXAS JEANS MARKET AT ABOUT 33 COMPARED WITH 20 NATIONALLY THE COMPANY TOUTS ITS BESTSELLING JEAN THE 13MWZ PRORODEO COWBOY CUT AS A BRAND CRAFTED BY COWBOYS FOR COWBOYS IT BOASTS OF SUCH TOUCHES AS RIVETS DESIGNED NOT TO SCRATCH SADDLE LEATHER AND WIDER LEGS MEANT TO FIT OVER BOOTS IT REALLY HAS NOTHING TO DO WITH RIDING HORSES CONCEDES CASEY JONES A DALLASBASED VICE PRESIDENT OF RETAIL SALES FOR WRANGLER PEOPLE OUT HERE EMBRACE THE WESTERN LIFESTYLE CONSUMERS NATIONALLY IT SEEMS ALSO EMBRACE THE TEXAS LIFESTYLE MARKETERS FREQUENTLY SEARCH TEXAS FOR LOCAL SUCCESSES THAT MIGHT BECOME NATIONAL HITS BECAUSE OF THE REGIONAL DIFFERENCE WE LOOK AT THIS MARKET AS A LAB FOR POTENTIALLY NATIONAL IDEAS SAYS BROCK LEACH VICE PRESIDENT OF MARKETING FOR THE FRITOLAY DIVISION OF PEPSICO INC INDEED FRITO HAS BUILT ITS BUSINESS BY SELLING MASSMARKET VERSIONS OF TEXAS SNACKS TO MIDDLE AMERICA IN 1989 FRITO EXECUTIVES SPOTTED A FEW LOCAL BRANDS OF WHITE CORN TORTILLA CHIPS IN SAN ANTONIO THAT WERE SELLING WELL FRITO SET OUT TO DEVELOP ITS OWN VERSION AS A REGIONAL BRAND EARLY TESTS PROVED SO SUCCESSFUL THE COMPANY ROLLED OUT THE PRODUCT TOSTITOS RESTAURANT STYLE THE FOLLOWING YEAR NOW FRITO EXECUTIVES SAY THE PRODUCT SELLS AS WELL IN NEW YORK AS IN TEXAS 9312290073 930929 TEXAS JOURNAL CASE NOT CLOSED A HIGH COURT PREVIEW AMONG THE BIG ISSUES PUNITIVE DAMAGES AND WORKERS' COMP BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL FOR TEXAS BUSINESS THE STATE SUPREME COURT IS NO LONGER SUCH A SCARY PLACE IN RECENT DECISIONS JUSTICES HAVE REDUCED LARGE PUNITIVEDAMAGE AWARDS AND OVERTURNED LOWER COURT DECISIONS AND THOSE OF THEIR PREDECESSORS TO MAKE IT HARDER TO FILE LAWSUITS A PREVIOUSLY SOLID PROPLAINTIFF BLOC NOW IS FREQUENTLY OUTVOTED BY A NEW CONSERVATIVE MAJORITY WITH THE FALL TERM WHICH OPENED EARLIER THIS MONTH BUSINESS GROUPS ARE HOPING THE SUPREME COURT WILL DO EVEN MORE TORT REFORMERS WANT FURTHER RESTRICTIONS ON PUNITIVE DAMAGES INSURANCE COMPANIES HOPE THE COURT SLAPS DOWN ATTEMPTS TO EXPAND CONSUMER LAWSUITS AND BUSINESS GROUPS ARE COUNTING ON THE COURT TO OVERTURN AN APPEALS COURT RULING THAT DECLARED THE STATE'S REVAMPED WORKERS' COMPENSATION SYSTEM UNCONSTITUTIONAL I THINK IT IS A MORE BALANCED COURT THAN IT WAS SAYS RALPH WAYNE PRESIDENT OF THE TEXAS CIVIL JUSTICE LEAGUE A BUSINESS GROUP THAT LOBBIES ON TORT REFORM AND OTHER LEGAL ISSUES I HAVE CAUTIOUS OPTIMISM THAT THEY WILL RULE FAVORABLY ON THE BUSINESS ISSUES BEFORE THEM CAUTION IS THE KEY WORD CLEARLY TODAY'S COURT HAS A MORE DECIDEDLY PROBUSINESS BENT THAN THE COURT OF THE 1980SMANY OF WHOSE MEMBERS WERE VOTED OUT AMID ALLEGATIONS OF UNDUE INFLUENCE OF CAMPAIGN CONTRIBUTIONS FROM LAWYERS PRACTICING BEFORE THE COURT BUT THE BALANCE OF POWER IS A DELICATE ONE JUSTICES NATHAN HECHT JOHN CORNYN AND CRAIG ENOCH FORM A CONSERVATIVE BLOC AND THEY ARE OFTEN JOINED BY A FELLOW REPUBLICAN CHIEF JUSTICE THOMAS PHILLIPS JUSTICES LLOYD DOGGETT BOB GAMMAGE AND ROSE SPECTOR ALL DEMOCRATS COMPRISE THE LIBERAL CAMP ON TORT AND DECEPTIVETRADEPRACTICE ISSUES FOR EITHER SIDE TO PREVAIL THEY HAVE TO WIN THE VOTES OF JUSTICES RAUL GONZALEZ AND JACK HIGHTOWER BOTH INDEPENDENT DEMOCRATS HERE'S A LOOK AT SOME OF THE IMPORTANT BUSINESS CASES EXPECTED TO BE DECIDED BY THE COURT THIS TERM PUNITIVE DAMAGES CURBING PUNITIVEDAMAGE AWARDS IS HIGH ON THE BUSINESS AGENDA AND REFORMERS HAVE THEIR SIGHTS SET ON A CASE OUT OF EL PASO JUAN CARLOS MORIEL A WORKER IN A BUILDINGPRODUCTS STORE WAS INJURED IN 1986 WHEN A STACK OF COUNTER TOPS FELL ON HIM BREAKING HIS PELVIS HIS WORKERS' COMPENSATION INSURER TRANSPORTATION INSURANCE CO A DALLAS SUBSIDIARY OF CNA INSURANCE COS PAID MOST OF HIS MEDICAL BILLS BUT THE COMPANY INITIALLY BALKED AT PAYING FOR DIAGNOSIS AND TREATMENT OF IMPOTENCE WHICH MR MORIEL SAID HE SUFFERED AS A RESULT OF THE ACCIDENT ALTHOUGH MR MORIEL AND TRANSPORTATION EVENTUALLY SETTLED THE WORKERS' COMP CLAIM MR MORIEL SUED TRANSPORTATION FOR FAILING TO ACT IN GOOD FAITH A JURY IN A DISTRICT COURT IN EL PASO AGREED AWARDING HIM 1000 IN ACTUAL DAMAGES 100000 FOR MENTAL ANGUISH AND 1 MILLION IN PUNITIVE DAMAGES IN APPEALING THE CASE TO THE SUPREME COURT TRANSPORTATION ARGUED THAT SUCH A LARGE AWARD VIOLATES ITS DUEPROCESS RIGHTS UNDER THE US AND TEXAS CONSTITUTIONS AND IS EXCESSIVE UNDER TEXAS LAW WHICH CAPS PUNITIVE DAMAGES AT FOUR TIMES ACTUAL DAMAGES IN PRODUCTLIABILITY AND PERSONALINJURY CASES ALTHOUGH NOT IN WORKERS' COMP DISPUTES THE TEXAS CIVIL JUSTICE LEAGUE AND OTHERS FILED FRIENDOFTHECOURT BRIEFS URGING THE COURT TO REVISIT A 1981 RULE THAT LIMITS AN APPEALS COURT'S ABILITY TO REVIEW PUNITIVEDAMAGE AWARDS THE CASE HAS BEEN ON ITS DOCKET SINCE DECEMBER 1991 A MEASURE SOME SAY OF THE DIVISIONS OVER THE ISSUE AND THE DIFFICULTY IT PRESENTS TO THE JUSTICES ESPECIALLY IN LIGHT OF RECENT US SUPREME COURT DECISIONS LETTING LARGE PUNITIVEDAMAGE AWARDS STAND YOU PROBABLY HAVE A MAJORITY OF THE JUSTICES THAT WANT TO SEE A LIMIT IMPOSED ON PUNITIVE DAMAGES SAYS REAGAN BROWN A PARTNER SPECIALIZING IN TRIAL AND APPELLATE WORK IN THE HOUSTON LAW FIRM OF FULBRIGHT & JAWORSKI BUT THEY DON'T KNOW WHAT VEHICLE TO USE TO GET THERE INSURANCE THE LAST THING INSURANCE COMPANIES WANT IS MORE WAYS TO BE SUED BUT THAT'S WHAT THEY FACE IN A DISPUTE BETWEEN ALLSTATE CORP'S ALLSTATE INSURANCE UNIT AND A NORTH TEXAS WOMAN THE CASE BEGAN WITH A COLLISION IN NORTH RICHLAND HILLS A FORT WORTH SUBURB KATHLEEN WATSON WAS STOPPED IN TRAFFIC WHEN HER CAR WAS STRUCK FROM BEHIND SHE SUFFERED NECK AND BACK INJURIES AND PAID ABOUT 2000 IN MEDICAL BILLS WHEN ALLSTATE THE OTHER DRIVER'S INSURER FAILED TO SETTLE TO HER SATISFACTION MS WATSON SUED THE COMPANY FOR BAD FAITH UNDER TEXAS INSURANCE LAW BEFORE HER CLAIM AGAINST THE DRIVER WAS RESOLVED A JURY RULED IN HER FAVOR AND THE SECOND COURT OF APPEALS IN FORT WORTH UPHELD THE VERDICT ALLSTATE AND OTHER INSURANCE COMPANIES THAT FILED BRIEFS WITH THE COURT ARGUED THAT IF AN INJURED PERSON CAN BYPASS THE INSURED AND SUE AN INSURER DIRECTLY FOR BAD FAITH IT WOULD PUT THE COMPANY AT ODDS WITH ITS OWN POLICYHOLDER ADDITIONAL LAWSUITS WOULD CLOG THE LEGAL SYSTEMS AND THE COST TO INSURANCE COMPANIES AND THEIR CUSTOMERS WOULD BE IN THE BILLIONS SAYS ALLSTATE'S ATTORNEY PAUL GLAD OF SONNENSCHEIN NATH & ROSENTHAL IN SAN FRANCISCO THE TEXAS DEPARTMENT OF INSURANCE AND THE CONSUMER DIVISION OF THE ATTORNEY GENERAL'S OFFICE DISAGREE ARGUING THAT MS WATSON'S CLAIM FALLS WELL WITHIN PROTECTIONS INTENDED BY THE LEGISLATURE TO TAKE THE MORE RESTRICTIVE VIEW WOULD BE GOING AGAINST THE CLEAR LANGUAGE OF THE STATUTE SAYS JOE K LONGLEY AN AUSTIN ATTORNEY FOR MS WATSON ASIS CONTRACTS HERE'S A DECEPTIVETRADEPRACTICES LAWSUIT WITH A TWIST CAN A PRESUMABLY SOPHISTICATED INVESTOR WHO BUYS COMMERCIAL REAL ESTATE UNDER AN ASIS CONTRACT SUE THE SELLER FOR DECEPTIVE TRADE PRACTICES WHEN THE BUILDING TURNS OUT TO CONTAIN ASBESTOS IN 1984 JEFFERSON ASSOCIATES A REALESTATEINVESTMENT PARTNERSHIP IN DALLAS PURCHASED AN AUSTIN OFFICE BUILDING FROM PRUDENTIAL INSURANCE CO OF AMERICA OF NEWARK NJ THE PROPERTY WAS SOLD AS IS WITH NO GUARANTEES ABOUT THE PRESENCE OR LACK OF POTENTIAL DEFECTS WHEN THE BUYERS FOUND THE BUILDING CONTAINED ASBESTOS CUTTING ITS VALUE FROM ABOUT 7 MILLION TO 1 MILLION THEY ACCUSED PRUDENTIAL OF CONCEALING THE HAZARD AND SUED FOR FRAUD AND VIOLATIONS OF THE DECEPTIVE TRADE PRACTICES ACT A TRAVIS COUNTY JURY AWARDED THE INVESTORS 20 MILLION IN ACTUAL AND PUNITIVE DAMAGES PRUDENTIAL DENIES THAT IT KNEW ABOUT THE ASBESTOS BUT EVEN IF IT DID KNOW IT SAYS ASIS CONTRACTS DO NOT ALLOW AN EXPERIENCED INVESTOR WITH THE RESOURCES TO CHECK OUT A PROPERTY TO COME BACK AND SUE FOR MULTIPLE DAMAGES WHEN THE DEAL GOES SOUR THIS WAS AN INVESTMENT SAYS MARK YUDOF UNIVERSITY OF TEXAS SCHOOL OF LAW DEAN AND AN ATTORNEY FOR PRUDENTIAL SOME REALESTATE INVESTMENTS MIGHT BE GOOD AND SOME MIGHT BE BAD JEFFERSON'S ATTORNEYS COUNTER THAT SUCH CONTRACTS CAN'T BE USED TO SHIELD MISREPRESENTATIONS AS IS' IS NOT A CONTRACT AGAINST FRAUD SAYS ROBERT HEARON AN AUSTIN ATTORNEY REPRESENTING THE INVESTORS WORKERS' COMP FOR TEXAS BUSINESS THE BIGGEST ISSUE THAT THE SUPREME COURT COULD DECIDE THIS TERM ISN'T EVEN ON THE DOCKET YET THE FOURTH COURT OF APPEALS EARLIER THIS SUMMER RULED THAT THE HARDFOUGHT 1989 REFORM OF THE STATE WORKERS' COMPENSATION SYSTEM IS UNCONSTITUTIONAL THE ATTORNEY GENERAL'S OFFICE WITH RESPONSIBILITY FOR DEFENDING THE LAW IN COURT HAS ALREADY SAID IT WILL APPEAL TO THE SUPREME COURT POSSIBLY BEFORE THE END OF THE YEAR IF YOU LOOK AT THE SWEEP AND THE BREADTH OF HOW THAT SYSTEM AFFECTS ALL ASPECTS OF BUSINESS IN THE STATE IT CERTAINLY HAS TO BE THE PREMIER ISSUE THE COURT WILL BE LOOKING AT SAYS TED ROBERTS VICE PRESIDENT AND GENERAL COUNSEL OF THE TEXAS ASSOCIATION OF BUSINESS THE APPEALS COURT RESPONDING TO A CHALLENGE BY ORGANIZED LABOR FOUND THAT THE LAW DENIES INJURED WORKERS THEIR DUEPROCESS RIGHTS AND VIOLATES THE STATE'S OPENCOURT GUARANTEES BY PLACING LIMITS ON JURY TRIALS THE LIMITS WERE ONE OF THE ELEMENTS OF THE NEW LAW MOST SOUGHT AFTER BY BUSINESS AND INSURANCE COMPANIES A DISSENTING OPINION BY JUSTICE DAVID PEEPLES CRITICIZED THE APPEALS COURT FOR AN UNWARRANTED EXERCISE OF JUDICIAL POWER BY DENYING THE LEGISLATURE THE ABILITY TO MAKE SWEEPING CHANGES IN THE LAW BUSINESS GROUPS HAVE ADOPTED JUSTICE PEEPLES'S ARGUMENT BUT HOW THE SUPREME COURT WILL RESPOND IS ANYBODY'S GUESS JUSTICES HAVE SHOWN THEY WON'T HESITATE TO THROW OUT LEGISLATIVE ACTIONS THAT DON'T PASS CONSTITUTIONAL MUSTERWITNESS THEIR TREATMENT OF THE 1991 SCHOOLFINANCE BILL WHICH WAS RULED UNCONSTITUTIONAL LAST YEAR AND THEY CONSISTENTLY HAVE DEFENDED THE OPENCOURT GUARANTEE HOWEVER IN A LAWSUIT BY THE TEXAS ASSOCIATION OF BUSINESS OVER FINES LEVIED BY THE TEXAS AIR CONTROL BOARD THE COURT THIS SPRING RULED THAT CERTAIN JUDICIAL FUNCTIONS COULD BE TRANSFERRED TO ADMINISTRATIVE AGENCIES WITHOUT VIOLATING THE RIGHT TO A JURY TRIAL A KEY PIECE IN THE APPEALS COURT ARGUMENT NATHAN L HECHT 44 REPUBLICAN ELECTED IN 1988 CAREER ATTORNEY WITH LOCKE PURNELL BOREN LANEY & NEELY DALLAS STATE DISTRICT JUDGE IN DALLAS COUNTY JUSTICE FIFTH COURT OF APPEALS DALLAS CRAIG ENOCH 43 REPUBLICAN ELECTED IN 1992 CAREER STATE DISTRICT JUDGE IN DALLAS CHIEF JUSTICE FIFTH COURT OF APPEALS IN DALLAS RAUL A GONZALEZ 53 DEMOCRAT APPOINTED IN 1984 CAREER ATTORNEY FOR THE CATHOLIC DIOCESE OF BROWNSVILLE ASSISTANT US ATTORNEY FOR THE SOUTHERN DISTRICT OF TEXAS ASSISTANT HOUSTON CITY ATTORNEY STATE DISTRICT JUDGE BROWNSVILLE JUSTICE 13TH COURT OF APPEALS CORPUS CHRISTI JOHN CORNYN 41 REPUBLICAN ELECTED IN 1990 CAREER TRIAL LAWYER GROCE LOCKE & HEBDON SAN ANTONIO STATE DISTRICT JUDGE BEXAR COUNTY CHIEF JUSTICE THOMAS R PHILLIPS 43 REPUBLICAN APPOINTED TO THE COURT IN JANUARY 1988 CAREER TRIAL ATTORNEY BAKER & BOTTS HOUSTON STATE DISTRICT JUDGE HOUSTON JACK HIGHTOWER 67 DEMOCRAT ELECTED IN 1988 CAREER MEMBER OF THE TEXAS HOUSE OF REPRESENTATIVES TEXAS SENATE AND US CONGRESS FIRST ASSISTANT ATTORNEY GENERAL OF TEXAS BOB GAMMAGE 55 DEMOCRAT ELECTED IN 1990 CAREER MEMBER OF THE TEXAS HOUSE OF REPRESENTATIVES TEXAS SENATE AND US HOUSE OF REPRESENTATIVES ASSISTANT ATTORNEY GENERAL OF TEXAS JUSTICE THIRD COURT OF APPEALS IN AUSTIN ROSE SPECTOR 60 DEMOCRAT ELECTED IN 1992 CAREER COURT AT LAW JUDGE BEXAR COUNTY STATE DISTRICT JUDGE BEXAR COUNTY LLOYD DOGGETT 46 DEMOCRAT ELECTED IN 1988 CAREER PRIVATE LAW PRACTICE MEMBER OF THE TEXAS SENATE 9312290045 930922 TEXAS JOURNAL APPARENTLY CHUCK NORRIS WAS TOO BUSY TO MAKE IT BY BOB ORTEGA MR T MIGHT NOT STRIKE SOME PEOPLE AS THE MOST PLAUSIBLE SPOKESMAN FOR NONVIOLENCE BUT THAT WAS HIS PITCH RECENTLY AT A GUEST APPEARANCE AT THE ARLINGTON STORE OF LONE STAR COMICS INC WHERE HE WAS HAWKING COPIES OF HIS NEW MR T AND THE T FORCE COMIC BOOKS BUDDY SAUNDERS OWNER OF THE EIGHTSTORE COMICBOOK CHAIN IN THE DALLAS/FORT WORTH AREA BROUGHT IN MR T AS PART OF HIS NEWEST MARKETING STRATEGY SPECIAL EVENTS FOR CHILDREN SIX TO 17 YEARS OLD WHO JOIN THE CHAIN'S GOOD GUYS CLUB THE FREE CLUB MODELED AFTER THE CHILDREN'S RADIOSHOW FAN CLUBS OF THE '40S AND '50S OFFERS MEMBERS DISCOUNTS PROMOTIONAL FREEBIES A SECRET CODE CLUB MEETINGS AND SPECIAL EVENTS SUCH AS MEETINGS WITH COMICS' CREATORS MR SAUNDERS SAYS ABOUT 500 CHILDREN SIGNED UP IN THE FIRST FEW MONTHS BOOSTING TRAFFIC AND SALES AT ALL OF HIS STORES AND PROMPTING CALLS FROM REGIONAL CHAINS IN OTHER PARTS OF THE COUNTRY INTERESTED IN TRYING THE SAME IDEA MR SAUNDERS A VOCAL CRITIC OF GRAPHIC VIOLENCE IN COMIC BOOKS SAYS THE CLUB IS A MARKETING TOOL THAT ALSO LETS HIM STEER HIS TARGET CUSTOMERS 90 OF THEM BOYS BETWEEN SIX AND 13 YEAR OLD TOWARD SUITABLE MATERIAL THE MR T BOOK IS A GOOD ONE HE SAYS HE DOESN'T CARRY A GUN AND NO ONE GETS KILLED 9312290038 930922 TEXAS JOURNAL ECONOMIC FOCUS WHAT A CHANGE OIL PRICES FALL TEXAS BARELY NOTICES BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL THE WORLD OIL MARKET HAS VERGED ON PANIC THIS MONTH AS FLAGGING DEMAND AND SPECULATION THAT IRAQ MIGHT RESUME EXPORTS SENT CRUDE PRICES SKIDDING TO A THREEYEAR LOW BUT IN TINY SEMINOLE SEAT OF THE MOST PROLIFIC OILPRODUCING COUNTY IN THE STATE THE NEWS HAS DRAWN MOSTLY YAWNS I DON'T THINK IT'S ANYTHING DRASTIC AT THE MOMENT SAYS CURTIS BROWN OWNER OF COAST TO COAST HOME & AUTO A HARDWARE AND AUTOMOTIVESUPPLY STORE THAT SITS JUST 150 YARDS FROM THE NEAREST PUMP JACK CUSTOMERS HE ADDS RARELY TALK ABOUT OIL PRICES AND WITH GOOD REASON EVEN THOUGH THIS GAINES COUNTY TOWN OF 7000 STILL BASES ABOUT HALF ITS ECONOMY ON OIL THE OTHER HALF IS PEANUTS AND COTTON PRICE GYRATIONS JUST DON'T HAVE THE IMPACT THEY ONCE DID UNLIKE THE BOOM DAYS OF A DECADE AGO WHEN HIGH PRICES SPURRED LOTS OF NEW DRILLING THERE HAVEN'T BEEN MANY RIGS IN ACTION IN RECENT YEARS SO FURTHER DECLINES IN OIL PRICES DON'T MAKE MUCH OF A DIFFERENCE COMPANIES WILL CONTINUE TO PUMP THE EXISTING WELLS DRY A JOB REQUIRING A STABLE NUMBER OF EMPLOYEES THAT WOULD CONTINUE UNLESS THE MARKET TOTALLY COLLAPSED ALL OVER TEXAS THE REACTION HAS BEEN SIMILARLY MUTED AND FOR THE SAME REASON OILPRICE SWINGS DON'T TEND TO AFFECT THE TEXAS ECONOMY MUCH ANYMORE I BASICALLY THINK IT'S A WASH UNLESS YOU GET A REAL DRAMATIC MOVE DOWN OR UP AND WE HAVEN'T HAD ONE SAYS JARED HAZLETON DIRECTOR OF THE CENTER FOR BUSINESS AND ECONOMIC ANALYSIS AT TEXAS A&M UNIVERSITY ADDS TAMARA PLAUT SENIOR ECONOMIST AT THE STATE COMPTROLLER'S OFFICE NOT ONLY IS THE RELATIONSHIP BETWEEN OIL PRICES AND THE OIL INDUSTRY REAL LOOSE BUT THE RELATIONSHIP BETWEEN OIL AND THE REST OF THE ECONOMY IS REAL LOOSE WHY THE CHANGE GIVE PART OF THE CREDIT TO EFFORTS TO DIVERSIFY THE ECONOMY MOST LARGE CITIES AS WELL AS A FEW SMALLER OIL PATCH TOWNS NOW BOAST ECONOMIES THAT ARE MORE CLOSELY ENTWINED WITH THE NATION'S AS A WHOLE EVEN HOUSTON THE ONLY TEXAS METROPOLIS WITH A MAJOR STAKE IN OIL IS SOMEWHAT INSULATED FROM PRICE SHIFTS BECAUSE OF ITS REFINERIES AND PETROCHEMICAL PLANTS WHICH BENEFIT WHEN PETROLEUM THEIR PRINCIPAL INPUT IS CHEAP RECENTLY NATURAL GAS PRICES HAVE BEEN MOVING UP STRONGLY EVEN WHILE OIL PRICES FALL THAT'S LED TO A SURGE IN DRILLING FOR GAS WHICN REQUIRES MORE EMPLOYEES PER WELL THE FITTEST SURVIVED THE WEAKEST OIL COMPANIES HAVE GONE OUT OF BUSINESS LEAVING THE FIRMS THAT CAN WITHSTAND PRICE SWINGS MORE EASILY MOSTLY THOUGH TEXAS HAS COME BY OIL INDEPENDENCE THE HARD WAY OIL PRICES HAVE FALLEN SO FAR AND SO MUCH PETROLEUM EXPLORATION ACTIVITY HAS MOVED OVERSEAS THAT THE PROPORTIONAL WEIGHT OF OIL TO THE ECONOMY HAS SHRUNK AS HAS THE EFFECT OF PRICE CHANGES THE NUMBERS TELL THE STORY IN 1981 AS OPEC'S GRIP ON THE OIL MARKET AND MIDDLE EAST INSTABILITY SENT PRICES TO 40 A BARREL THE ENERGY SECTOR INCLUDING EXTRACTION AND REFINING ACCOUNTED FOR 25 OF THE STATE'S ECONOMIC OUTPUT BUT PRICES HAVE TUMBLED IN THE 12 YEARS SINCE THEN LEAVING WEST TEXAS INTERMEDIATE CRUDE THE MAIN US BENCHMARK CHEAPER THAN 10 A BARREL AT TIMES AND THE ENERGY SECTOR'S CONTRIBUTION TO THE TEXAS ECONOMY HAS BEEN HALVED TO 12 WITH PRODUCTION AND EXPLORATION JOBS CUT TO 159900 FROM 313500 IN 1982 ONE PERSON WHO DOES STILL SEE A LINK IF A WEAKENED ONE IS STEPHEN PA BROWN A SENIOR ECONOMIST AT THE FEDERAL RESERVE BANK OF DALLAS ACCORDING TO THE FED'S MODEL EXPECTATIONS OF A PROLONGED DROP OF 1 A BARREL IN PRICE TRANSLATES INTO 15000 LOST JOBS OVER THE COURSE OF ABOUT TWO YEARS INCLUDING THE RIPPLE EFFECT IN SECONDARY SECTORS SUCH AS RETAILERS THAT SERVE OIL TOWNS THAT'S DOWN FROM 22000 JOBSPERDOLLAR IN THE EARLY 1980S BUT THE FED MODEL MAY UNDERSTATE HOW MUCH THINGS HAVE CHANGED BACK IN THE EARLY 1980S HIRING DECISIONS WERE OFTEN DRIVEN BY THE EXPECTATIONS OF 80ABARREL OIL SO WHEN OIL DROPPED TO 10 THE NET EFFECT WAS MORE LIKE A 70 DECLINE NOW WITH SPOT OIL PRICES AROUND 17 EXPECTATIONS ARE A LOT LOWER TO BEGIN WITH ALONG THE LINES OF 19 JUDGING FROM FUTURES MARKETS SO IT'S IMPOSSIBLE FOR EXPECTATIONS TO DROP NEARLY AS MUCH AS THEY DID BACK IN THE EARLY '80S POLITICAL PLAY OIL PRICES MIGHTN'T BE AS IMPORTANT TO THE TEXAS ECONOMY ANYMORE BUT THEY STILL PLAY A BIG ROLE IN TEXAS POLITICS TEXAS RAILROAD COMMISSIONER MARY SCOTT NABERS PLANS TO LAUNCH A CAMPAIGN TO GET THE CLINTON ADMINISTRATION TO STEM THE FALL IN OIL PRICES THE VENUE A SEPT 28 FUNDRAISING DINNER IN AUSTIN IN ANTICIPATION OF THE NOVEMBER ELECTIONS HERE I'M GOING TO BE TAKING A HIGHPROFILE ADVOCACY POSITION TELLING WASHINGTON WE NEED TO SOMEHOW ESTABLISH A PRICE FLOOR SHE SAYS ADDING THAT ONE METHOD MIGHT BE TO SET A TAX ON IMPORTED PETROLEUM TO ENSURE THAT DOMESTIC PRODUCERS GET AT LEAST SAY 15 A BARREL THE US DEPARTMENT OF ENERGY IS FINISHING UP ITS OWN PROPOSAL TO STIMULATE DOMESTIC OIL AND GAS PRODUCTION A SPOKESMAN DECLINES TO PROVIDE DETAILS BUT NOTES THAT DEPUTY ENERGY SECRETARY BILL WHITE HIMSELF A TEXAN HAS ALREADY SAID THAT AN OILIMPORT FEE IS PRETTY MUCH OFF THE TABLE BECAUSE OF CONCERNS ABOUT POLITICAL FALLOUT 9312290034 930922 TEXAS JOURNAL SO MR FORD HOW MUCH AND NOW WHAT BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS BANKER GERALD J FORD IS COMING INTO A CHUNK OF CHANGE HIS NAME DOESN'T YET SHOW UP ON ANY LIST OF THE STATE'S 100 WEALTHIEST PEOPLE BUT TWO DEALS IN WHICH MR FORD IS SELLING MOST OF HIS BANK HOLDINGS WILL EARN HIM ENOUGH TO RANK AMONG THAT MONEYED GROUP THEY ALSO HAVE ESTABLISHED HIM AS A QUINTESSENTIAL ENTREPRENEURIAL BANKER IN JULY THE 49YEAROLD PAMPA NATIVE LINED UP A WINDFALL OF 75 MILLION IN STOCK FOR THE PLANNED SALE OF ALBUQUERQUEBASED FIRST UNITED BANK GROUP INC TO NORWEST CORP OF MINNEAPOLIS FOR 495 MILLION IN FEBRUARY BANKAMERICA CORP OF SAN FRANCISCO BOUGHT THE DEPOSITS BRANCHES AND SOME OTHER ASSETS OF IRVINGBASED FIRST GIBRALTAR BANK THE OFFSPRING OF FIVE FAILED TEXAS SAVINGS AND LOANS WHICH MR FORD HAD HELPED TO CREATE WITH THE FINANCIAL BACKING OF A GROUP LED BY NEW YORK INVESTOR RONALD O PERELMAN ASSOCIATES AND FORMER EMPLOYEES SAY MR FORD MADE 41 MILLION TO 75 MILLION FROM THAT AND OTHER FIRST GIBRALTAR ASSET SALES WHOSE TOTAL VALUE HASN'T BEEN DISCLOSED HE SAYS ONLY I DID QUITE WELL IT'S A HOBBY TO SPECULATE HOW MUCH MONEY JERRY'S MADE THIS YEAR SAYS A FORMER FIRST GIBRALTAR OFFICIAL NOW FOR THE OTHER BIG QUESTION WHAT DOES MR FORD DO FOR AN ENCORE AFTER 17 YEARS BUILDING A BANKING EMPIRE FROM A STRING OF SMALL UNDERPERFORMING COUNTRY BANKS THE REAL TEST FOR JERRY NOW WOULD BE TO SEE IF HIS ENTREPRENEURIAL SKILLS ARE AS EFFECTIVE OUTSIDE THE FINANCIAL ARENA SAYS ROBERT RIEKE A VICE PRESIDENT AT THE DALLAS BROKERAGE FIRM PRINCIPAL/EPPLER GUERIN & TURNER WHO WAS MR FORD'S COLLEGE ROOMMATE AT SOUTHERN METHODIST UNIVERSITY MR FORD MAY NOT TRY TO FIND OUT ANYTIME SOON HE SAYS HE IS CONSIDERING A DEAL WITH AN UNNAMED BANK THAT HAS ASSETS OF MORE THAN 1 BILLION HE SAYS HE IS ALSO PURSUING SOMETHING IN THE FINANCIALSERVICES SECTOR THAT ISN'T A BANK OR THRIFT AND ISN'T IN TEXAS SOMETHING LIKE A MORTGAGE BANK SOMETHING LIKE THAT JERRY ISN'T GOING TO STRAY TOO FAR FROM BANKING HE'S DONE TOO WELL THERE SAYS TED STRAUSS SENIOR MANAGING DIRECTOR AT BEAR STEARNS & CO IN DALLAS WHILE CHAIRMAN OF UNITED NATIONAL BANK IN DALLAS MR STRAUSS HELPED MR FORD THEN A 31YEAROLD RECENT LAWSCHOOL GRADUATE WITH LITTLE BANKING EXPERIENCE BUY HIS FIRST THREE BANKS THROUGH THE YEARS WITH FINANCING FROM BIG DALLAS BANKS MR FORD PURCHASED A STRING OF SMALL COUNTRY BANKS IN CANYON CRANE DENVER CITY AND OTHER OUTPOSTS HE BUILT THEM INTO CLOSELY HELD FORD BANK GROUP BASED IN LUBBOCK WHICH HE CONTROLLED IN THE MID'80S HE BOUGHT AN EQUITY STAKE IN UNITED NEW MEXICO FINANCIAL CORP OF ALBUQUERQUE WHERE HE BECAME CHAIRMAN AND CHIEF EXECUTIVE MR FORD ENGINEERED A MERGER OF THE TWO COMPANIES IN MARCH TO FORM FIRST UNITED WHERE HE BECAME CHAIRMAN AND CEO AND HOLDER OF A 15 STAKE TODAY AS NORWEST PREPARES TO COMPLETE ITS ACQUISITION HIS TEXAS AND NEW MEXICO BANKING DOMAIN INCLUDES MORE THAN 20 BANKS AND NEARLY 4 BILLION IN ASSETS THE FIRST UNITED SALE WILL MAKE MR FORD ONE OF NORWEST'S LARGEST SHAREHOLDERS HE ALSO WILL JOIN THE BANK'S BOARD WHERE HE MIGHT WELL PLAY A ROLE HELPING NORWEST ACQUIRE OTHER COMMUNITY BANKS HE SAYS STILL I HAVE A DEEP DESIRE TO LOOK FOR BIGGER PLAYS THAN THAT FOR HIS OWN ACCOUNT HE'S NOW LOOKING NATIONWIDE TO BUY COMMUNITY BANKS WITH SOLID FRANCHISES OUTSIDE METROPOLITAN AREAS AS CHAIRMAN OF FIRST MADISON BANK A FIRST GIBRALTAR REMNANT THROUGH WHICH HE AND MR PERELMAN OPERATE FOUR BANK BRANCHES IN PLANO HE HAS EXPLORED DEALS WITH THE RESOLUTION TRUST CORP IN AND OUT OF TEXAS COMMUNITY BANKERS CALL TO PITCH THE MERITS OF BUYING THEIR INSTITUTIONS BARGAINS HOWEVER HAVE BECOME HARD TO FIND SICKLY BANKS ARE RARE AND PRICES FOR HEALTHY BANKS ESCALATE WITH EACH NEWLY ANNOUNCED MERGER OPPORTUNITIES AREN'T READILY AVAILABLE TODAY HE SAYS MR FORD'S BIGGEST ACQUISITION OF FIRST GIBRALTAR CAME ALMOST BY ACCIDENT BOB UTLEY CHAIRMAN OF THE DALLAS INVESTMENT BANK FIRST SOUTHWEST CO AND MR FORD'S STRATEGIST IN WHAT WOULD BECOME THE FIRST GIBRALTAR DEAL SAYS THEY WERE TALKING WITH REGULATORS IN 1988 ABOUT BUYING A FAILED BANK WHEN THE REGULATORS ASKED US IF WE'D BE INTERESTED IN A GROUP OF BIG THRIFTS THAT WAS GOING TO BE BID WE DECIDED TO TAKE A LOOK THROUGH FRIENDS IN THE DALLAS OFFICE OF BEAR STEARNS MR FORD MET MR PERELMAN WHO ULTIMATELY AGREED TO FUND A MAJORITY OF THE ACQUISITION THROUGH HIS MACANDREWS & FORBES HOLDINGS INC MR FORD'S COMPENSATION A 1 MILLION FINDER'S FEE A 1 MILLIONAYEAR JOB AS CHAIRMAN AND CHIEF EXECUTIVE AND AN EQUITY STAKE OF ROUGHLY 3 HE ALSO BOUGHT ABOUT 3 MORE GIVING HIM A TOTAL STAKE OF 625 BUT HE AND MR PERELMAN WERE ATTACKED IN CONGRESS FOR THE TERMS OF THEIR AGREEMENT WITH REGULATORS WHICH INCLUDED 51 BILLION IN FEDERAL ASSISTANCE AND NEARLY 900 MILLION IN TAX BREAKS THE VITRIOL UPSET MR FORD PEOPLE NEVER REALIZED WE WERE ASKED TO PARTICIPATE THAT WE PLAYED BY THE RULES THAT WERE GIVEN TO US AND THAT WE WON IN A BIDDING PROCESS HE SAYS WE DID NOTHING WRONG TODAY I FEEL OK ABOUT IT AND I'M PROUD FIRST GIBRALTAR WAS A SUCCESS EARLIER THIS YEAR MR FORD SUFFERED A MILD HEART ATTACK WHICH FRIENDS SAY MIGHT FORCE HIM TO SLOW HIS HECTIC PACE BUT MR FORD SAYS THAT WON'T HAPPEN THOUGH HE DOES ADMIT THE HEART ATTACK HAS PROMPTED ONE CHANGE NOW WHEN I GET BORED IN MEETINGS I WALK OUT 9312290032 930929 TEXAS JOURNAL GOP VISIT PROVES NO WHITE ELEPHANT TO TOURIST INDUSTRY BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON HOSTING THE REPUBLICAN NATIONAL CONVENTION LAST YEAR IS PAYING OFF FOR HOUSTON'S BUSINESSTRAVEL INDUSTRY HOTEL AND MOTEL OFFICIALS EXPECT TO REGISTER 500000 GUESTS BY THE END OF 1993 UP 52 FROM 1992 ALTHOUGH OFFICIALS AREN'T SURE WHAT PERCENTAGE OF THOSE VISITORS ARE BUSINESS TRAVELERS THEY FIGURE THAT QUITE A FEW ARE AFTER ALL THEY CONCEDE HOUSTON ISN'T EXACTLY A TOURIST MECCA DURING ITS SWELTERING SUMMERS ONE REASON FOR THE BUSINESSTRAVELER INCREASE IS PROBABLY THAT INCOME FROM THE REPUBLICANS' VISIT HAS ALLOWED THE HOUSTON CONVENTION AND VISITORS BUREAU TO INCREASE ITS STAFF TO 60 FROM 48 A YEAR AGO AS WELL AS TO INTENSIFY ITS MARKETING EFFORTS MOREOVER THE CONVENTION BUREAU IS FOCUSING MORE OF ITS RECRUITMENT EFFORTS ON TEXAS COMPANIES THAN IN THE PAST FIGURING IT WAS MISSING OUT ON A HUGE MARKET CLOSE TO HOME THE ADDED BUSINESS IS LARGELY FROM MEDICAL GROUPS AND OIL AND NATURALGAS ORGANIZATIONS SAYS DONALD WARD DIRECTOR OF SPECIAL PROJECTS FOR THE BUREAU 9312290031 930929 TEXAS JOURNAL STATE'S EFFORTS TO PUSH ALTERNATIVE FUELS ARE HAMPERED BY TOO MANY ALTERNATIVES BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL TEXAS' CAMPAIGN TO ENCOURAGE DRIVERS TO SWITCH FROM GASOLINE TO CLEANERBURNING FUELS APPEARS TO BE STUCK IN FIRST GEAR FOUR YEARS AFTER LEGISLATORS PASSED A LAW ORDERING SCHOOL DISTRICTS STATE AGENCIES AND TRANSIT AUTHORITIES TO CONVERT 30 OF THEIR FLEETS TO ALTERNATIVE FUELS BY SEPTEMBER 1994 FEW ARE CLOSE TO THE GOALS EVEN FEWER PRIVATE DRIVERS FACED WITH A DEARTH OF REFUELING STATIONS HAVE CHANGED OVER AND CRITICS CHARGE THAT HAGGLING AMONG STATE AGENCIES OVER WHICH ALTERNATIVE FUEL TO PROMOTE HAS LEFT THE EFFORT RUDDERLESS JUST WHEN STRONG LEADERSHIP IS MOST NEEDED TO PROMOTE THE ECONOMIES OF SCALE THAT WILL MAKE CHANGE ATTRACTIVE EVER SINCE THE INCEPTION OF SENATE BILL 740 IN 1989 VEHICLE FLEETS HAVE BEEN PLAGUED BY A BEWILDERING ARRAY OF WELL ALTERNATIVES ELECTRICPOWER ADVOCATES AS WELL AS THOSE BACKING ETHANOL AND METHANOL HAVE BEEN PITCHING THEIR FUELS BUT THE BIGGEST TUGOFWAR IS BETWEEN NATURAL GAS AND PROPANE A BYPRODUCT OF NATURALGAS PROCESSING AND CRUDEOIL REFINING THE GENERAL LAND OFFICE WHICH OVERSEES GASRICH STATE LANDS IS PUSHING NATURAL GAS AS THE BEST FUEL WHILE THE RAILROAD COMMISSION EVER SINCE THE PROPANE INDUSTRY COMPLAINED IT WAS UNFAIRLY NEGLECTED HAS GOTTEN 2 MILLION IN ANNUAL TAXES ON PROPANE DISTRIBUTION TO PLUG THAT FUEL WITH BUMPER STICKERS AND RADIO JINGLES SUPPORTERS OF THE CONVERSION CAMPAIGN WHICH HAS WON TEXAS FAVORABLE PUBLICITY AND VAULTED LAND COMMISSIONER GARRY MAURO TO NATIONAL PROMINENCE SAY THE CRITICS ARE NITPICKING ABOUT THE DELAYS I THINK WE'VE MADE REMARKABLE HEADWAY MR MAURO SAYS OUR RATHER AMBITIOUS GOALS AREN'T GOING TO BE MET BUT WE'LL COME CLOSE ANYWAY HE SAYS THE SCHEDULE OF DEADLINES WHICH WOULD REQUIRE NEARLY 50 OF SOME 40000 PUBLIC VEHICLES TO SWITCH TO CLEANER FUELS BY 1996 AND 90 BY 1998 WAS A MEANS TO AN END THE WHOLE IDEA WAS TO PUSH TECHNOLOGY TO PUSH MARKETS HE SAYS THE DEADLINES WERE ESTABLISHED TO CREATE MARKETS IF THE MARKETS ARE SLOW TO REACT WE'LL PUSH BACK THE DEADLINES THERE HAVE BEEN SOME SUCCESS STORIES SOUTHERN UNION CO AN AUSTIN UTILITY HAS INVESTED MORE THAN 5 MILLION IN A PLANT THERE THAT CONVERTS GASOLINEPOWERED VEHICLES TO BIFUEL VEHICLES THAT RUN ON EITHER GASOLINE OR NATURAL GAS AND DEMAND FROM THE HARRIS COUNTY METROPOLITAN TRANSIT AUTHORITY HAS ALREADY SPURRED SEVERAL ENGINE MANUFACTURERS TO LOWER THEIR PRICES ON NEW BUSES DESIGNED TO RUN ON LIQUID NATURAL GAS STILL DESPITE MILLIONS OF TAX DOLLARS SPENT TO PROMOTE ALTERNATIVE FUELS AND CONVERT FLEETS ONLY ABOUT 03 OF TEXAS' ESTIMATED TOTAL OF 14 MILLION VEHICLES ARE NOW USING ALTERNATIVE FUELS MANY FLEETS THAT MUST CONVERT UNDER THE LAW ARE BEHIND SCHEDULE AS OF SEPT 1 FOUR OF THE LARGEST STATE FLEETS THOSE OF THE DEPARTMENTS OF MENTAL HEALTH PARKS AND WILDLIFE CRIMINAL JUSTICE AND TRANSPORTATION HAD A COMBINED 1872 ALTERNATIVELY FUELED VEHICLES OR 13 OF THE VEHICLES THAT THEY ARE LEGALLY REQUIRED TO CONVERT ONE MAJOR STUMBLING BLOCK THE LACK OF ALTERNATIVEFUELS TECHNOLOGY FOR TRANSIT BUSES AND OTHER DIESELPOWERED VEHICLES MR MAURO'S OFFICE SAYS THAT CONVERSION KITS AND DEDICATED BUSES ARE BEGINNING TO BECOME AVAILABLE POLITICAL INFIGHTING IS ANOTHER PROBLEM SIPHONING MONEY THAT COULD OTHERWISE BE SPENT ON CONVERSIONS FOR INSTANCE THE PARKS DEPARTMENT HAD BEEN CONVERTING ITS FLEET TO PROPANE WHICH IS READILY AVAILABLE IN RURAL AREAS FEELING PRESSURED BY MR MAURO'S OFFICE TO BUY 20 NATURALGASPOWERED TRUCKS AT A PREMIUM OF 4500 OVER REGULAR GASOLINEPOWERED TRUCKS PARKS AND WILDLIFE COMMISSIONER DONALD NOONER COMPROMISED BY BUYING THREE BUT THE TRUCKS ONLY HAD A RANGE OF ABOUT 125 MILES AND HE NEEDED TWO IN JUNCTION 175 MILES AWAY FROM AUSTIN SO JUST TO GET THEM TO THEIR NEW HOME MR NOONER ADDED SECOND TANKS ADDITIONAL COST 3000 SAYS MR NOONER THERE'S A LOT OF WASTE IN GOVERNMENT TRANSIT AND SCHOOL BUSES THE BIGGEST DELAYS HAVE BEEN IN CONVERTING SCHOOL AND TRANSIT BUSES ALL SCHOOL DISTRICTS HAVE ALREADY BEEN GRANTED AN EXTENSION BY AN ACT OF THE STATE LEGISLATURE THE DISTRICTS NOW MUST CONVERT 50 OF THEIR FLEETS BY 1997 MEANWHILE THE EIGHT BIGGEST SALESTAXFUNDED TRANSIT AUTHORITIES IN THE STATE COLLECTIVELY HAD SWITCHED ONLY ABOUT 11 OF THEIR FLEETS TO ALTERNATIVE FUELS BY SEPT 1 ONLY FOUR OF THE EIGHT IN FORT WORTH CORPUS CHRISTI AUSTIN AND EL PASO ARE CONFIDENT THEY WILL HIT 30 TO MEET NEXT SEPTEMBER'S DEADLINE THE TWO BIGGEST PUBLICTRANSIT FLEETS DALLAS AREA RAPID TRANSIT AND METROPOLITAN TRANSIT OF HARRIS COUNTY PROBABLY WILL FALL SHORT AND VIA METROPOLITAN TRANSIT AUTHORITY OF SAN ANTONIO AND THE LAREDO MUNICIPAL TRANSIT SYSTEM HAD NO VEHICLES RUNNING ON ALTERNATIVE FUELS AS OF SEPT 1 ALTHOUGH SOME HAVE BEEN ORDERED MOREOVER THE NUMBERS PROBABLY OVERSTATE THE PROGRESS BECAUSE MOST OF THE TRANSIT AUTHORITIES ARE BOOSTING THEIR PERCENTAGES BY CONVERTING VANS AND ADMINISTRATIVE CARS WHICH ARE SIMPLER AND CHEAPER THAN BUSES TO CONVERT SO WHAT HAPPENS IF THE STATE AGENCIES AND TRANSIT AUTHORITIES COME UP SHORT AT THE DEADLINE NOT MUCH FOR ONE THING MANY OF THE CONVERSIONS ARE MONEYLOSERS ALLOWING A POSSIBLE OUT UNDER THE LANGUAGE OF THE LAW WHICH SAYS WAIVERS CAN BE GRANTED IF CONVERSIONS CAN'T PAY FOR THEMSELVES THROUGH REDUCED FUEL COSTS FOR SCHOOLS THAT DON'T GET SUBSIDIZED CONVERSIONS FROM A UTILITY IN RETURN FOR A LONGTERM SUPPLY CONTRACT THE COST CAN BE ASTRONOMICAL AUSTIN WHICH JUST CUT ITS SCHOOL BOOK BUDGET BY 10 SPENT 400000 FOR A NATURALGAS FILLING STATION THE SCHOOL DISTRICT IS ALSO LOSING MONEY ON EACH CONVERSION SAYS DIRECTOR OF TRANSPORTATION DAN ROBERTS IT COSTS 5000 TO CONVERT A GASOLINE SCHOOL BUS BUT ANNUAL FUEL SAVINGS ARE ONLY 540 SAYS MR ROBERTS EVEN FOR THOSE WHO DON'T SEEK WAIVERS BASED ON ECONOMICS THE LAW LACKS PUNCH IT SPECIFIES NO PENALTY FOR LAGGARDS THERE IS NO ENFORCER SAYS GENERAL SERVICES COMMISSIONER JOHN POULAND IN A TACIT ADMISSION THAT THE CURRENT EFFORT IS WANTING THE LEGISLATURE THIS PAST SESSION PASSED A LAW TO FORM A NEW SIXMEMBER BOARD TO AID CONVERSION EFFORTS WITH 5 MILLION IN FEDERAL GRANT MONEY AND 50 MILLION IN STATE BOND MONEY AND PUT A STOP TO HAGGLING AMONG AGENCIES THE ALTERNATIVE FUELS COUNCIL WHICH BEGAN MEETING THIS MONTH INCLUDES THE LAND COMMISSIONER THE THREEMEMBER RAILROAD COMMISSION AND THE HEADS OF THE GENERAL SERVICES COMMISSION AND THE TEXAS NATURAL RESOURCES CONSERVATION COMMISSION STILL MANY FEAR THE BOARD WILL FAIL PRECISELY BECAUSE IT WON'T TAKE A POSITION ON WHICH FUEL IS BEST MR MAURO THE COUNCIL'S CHAIRMAN PROMISES TO BE FUELNEUTRAL EVEN THOUGH HE MADE HIS POLITICAL CAREER AS AN OUTSPOKEN CHAMPION OF NATURAL GAS I DON'T THINK THE GOVERNMENT SHOULD DECIDE HE SAYS DON'T YOU THINK WE'D SCREW IT UP 9312290030 930929 TEXAS JOURNAL TODAY'S LESSON DON'T LET THE RTC SELL YOUR HOUSE BY TARA PARKERPOPE THE RESOLUTION TRUST CORP HAS BUILT A REPUTATION FOR BARGAINS BUT IN TEXAS IT LOOKS LIKE THERE HAS BEEN A FIRE SALE ACCORDING TO LIQUIDATION ALERT A NEWARK NJ NEWSLETTER THE RTC'S RECORD FOR THE SALE OF FAILEDTHRIFT ASSETS IN TEXAS LAGS FAR BEHIND THE REST OF THE COUNTRY NATIONWIDE THE RTC HAS RECOVERED AN AVERAGE OF 912 OF BOOK VALUE FROM ITS LIQUIDATION OF FAILED SAVINGS AND LOAN ASSETS THE NEWSLETTER REPORTS BUT IN TEXAS THE RTC HAS RECOVERED JUST 802 CENTS ON THE DOLLAR THE VALLEY FORGE PA AND NEWPORT BEACH CALIF OFFICES OF THE RTC SHARE THE TOP HONORS FOR THE BEST RECOVERY RATE AT 945 WHY DOES TEXAS FARE SO POORLY RTC OFFICIALS SAY TEXAS HAD MORE RAW LAND TROUBLED REAL ESTATE AND NONPERFORMING LOANS IN THE MIX WHICH DRAGS DOWN ITS RECOVERY AVERAGE IN ADDITION SAYS AN RTC SPOKESMAN TEXAS IS FARTHER INTO ITS LIQUIDATION THAN THE REST OF THE COUNTRY THAT MEANS THE DALLAS OFFICE ALREADY HAS SOLD RELATIVELY MORE OF ITS WORST ASSETS WHICH HAVE THE WEAKEST RETURNS BUT WHILE OTHER STATES MAY BEGIN TO CATCH UP WITH TEXAS DON'T EXPECT TEXAS' STATS TO IMPROVE WE'RE DOWN TO THE HARDSELL CATEGORY NOW SAYS A SPOKESMAN AT THE DALLAS RTC OUR RETURNS ARE GOING TO BE PROGRESSIVELY LESS AS TIME GOES ON 9312290029 930929 TEXAS JOURNAL IS THAT 300000 WITH OR WITHOUT THE CASE BY BOB ORTEGA DALLAS ZALE CORP THINKS IT MAY HAVE JUST THE THING FOR HOLIDAY SHOPPERS A 300000 DIAMOND AND PLATINUM NECKLACE AT LEAST THE JEWELRY RETAILING CHAIN HOPES IT'S JUST THE THING THE BAUBLE IS THE PIECE DE RESISTANCE OF THE COMPANY'S FIRST CHRISTMAS CATALOG IN FOUR YEARS THE BOOK IS SORT OF A COMINGOUT PARTY FOR ZALE WHICH EMERGED FROM BANKRUPTCYLAW PROCEEDINGS LAST MONTH INDEED WHILE THE COMPANY STILL FACES SOME TOUGH TIMES THE CATALOG REPRESENTS A RETURN TO MORENORMAL MARKETING EFFORTS AFTER SEVERAL YEARS OF TRIMMING THE ADVERTISING BUDGET TO SCROOGELIKE LEVELS THE BOOK DUE OUT NOV 1 WILL BE THE KEYSTONE OF A 35 MILLION FALL ADVERTISING CAMPAIGN THAT WILL INCLUDE PRINT ADS IN DAILY NEWSPAPERS AND HIGHPROFILE NATIONAL MAGAZINES ZALE IS SPENDING 750000 ON THE GLOSSY 48PAGE CATALOG ALONE HOPING TO SPUR CHRISTMAS SALES AT ITS 133STORE FINE JEWELRY GUILD DIVISION THE DIVISION OPERATES SUCH TRADE NAMES AS CORRIGAN LINZ AND SWEENEY'S IN TEXAS MALLS 9312290027 930929 TEXAS JOURNAL THIS BANK OFFERS FREE CALENDARS A MONTH AT A TIME BY JEFF D OPDYKE NAME CHANGES HAVE BECOME A FACT OF LIFE IN TEXAS BANKING WITH ALL THE MERGERS CLOSURES BUYOUTS AND FAILURES OF THE RECENT PAST BANKS HAVE BEEN COLLECTING NEW NAMES LIKE KIDS COLLECT BASEBALL CARDS BUT EVEN IN THIS ERA MIDLAND NATIONAL BANK STANDS OUT FOR 80 YEARS MIDLAND NATIONAL BANK WAS JUST THAT MIDLAND NATIONAL THEN IN 1983 HOUSTON'S FIRST CITY BANCORP OF TEXAS AFTER OWNING MIDLAND NATIONAL FOR ABOUT A DECADE RENAMED IT FIRST CITY MIDLAND NATIONAL BANK SO FAR SO GOOD BUT THAT MARRIAGE FELL APART LAST OCTOBER WHEN THE FEDERAL DEPOSIT INSURANCE CORP SEIZED FIRST CITY BANCORP IN THE ENSUING ASSET SALE MIDLAND NATIONAL ER FIRST CITY MIDLAND PICKED UP A NEW MONICKER TEXAS COMMERCE BANK PART OF TEXAS COMMERCE BANCSHARES INC THEN CAME ANOTHER TWIST THE US JUSTICE DEPARTMENT IT TURNS OUT HAD A SMALL PROBLEM WITH ANTITRUST CONSIDERATIONS TEXAS COMMERCE COULDN'T OWN THE BANK THE JUSTICE DEPARTMENT DECREED IT HAD TOO MUCH MARKET SHARE SO AFTER JUST TWO MONTHS OF OWNERSHIP TEXAS COMMERCE SIGNED A DEAL IN APRIL TO SELL THE ONEBRANCH BANK TO LUBBOCKBASED FORD BANK GROUP THE TEXAS COMMERCE SIGN WOULD BE COMING DOWN AND MIDLAND NATIONAL/FIRST CITY MIDLAND/TEXAS COMMERCE BANK WAS SET TO RENAME ITSELF ONE LAST TIME ON OCT 1 BACK TO MIDLAND NATIONAL BANK WHAT'S OLD HAD BECOME WHAT'S NEW AGAIN UNTIL MIDLAND OFFICIALS SAY IT WILL BE UP TO THEM TO DETERMINE IF AND WHEN THE BANK PICKS UP THE NORWEST NAME IN THE MEANTIME SAYS CHUCK COWELL MIDLAND NATIONAL'S EXECUTIVE VICE PRESIDENT WE STILL PLAN TO ERECT A MIDLAND NATIONAL BANK SIGN ON FRIDAY OUR CUSTOMERS WERE COMING IN WONDERING WHO WE WERE SOMETIMES 9312290026 930929 TEXAS JOURNAL WINNERS & LOSERS LIVING WATERS ARTESIAN SPRINGS THE BEXAR COUNTY CATFISH FARM GOT PERMISSION TO REOPEN FROM THE TEXAS NATURAL RESOURCE CONSERVATION COMMISSION BUT LIVING WATERS STILL FACES OPPOSITION FOR ITS USAGE OF EDWARDS AQUIFER WATER BELL HELICOPTER TEXTRON A FEDERAL JUDGE THREW OUT A JURY'S FINDING THAT THE FORT WORTH DEFENSE CONTRACTOR IMPROPERLY FIRED AN EXECUTIVE FOR RAISING QUESTIONS ABOUT BELL'S BILLS TO THE PENTAGON HOUSTON INTERCONTINENTAL AIRPORT FEDERAL EXPRESS PLANS TO OPEN A 4 MILLION CARGO CENTER IN JUNE DOUBLING THE SIZE OF ITS HOUSTON OPERATION THOMAS M GAUBERT THE FORMER THRIFT OWNER AND DEMOCRATIC FUNDRAISER WAS SENTENCED TO FIVE YEARS IN FEDERAL PRISON FOR BANKRUPTCY FRAUD AND MONEY LAUNDERING PRUDENTIAL INSURANCE CO OF AMERICA THE TEXAS ATTORNEY GENERAL'S OFFICE ACCUSED THE INSURER OF WRONGFULLY REFUSING TO COVER A BREASTCANCER TREATMENT PRUDENTIAL SAYS IT PAYS FOR THE TREATMENT WHEN IT MEETS NATIONAL CANCER INSTITUTE GUIDELINES DALLAS ANHEUSERBUSCH COS WILL MOVE THE HEADQUARTERS OF ITS CAMPBELL TAGGART AND EAGLE SNACKS FOOD BUSINESSES FROM DALLAS TO ST LOUIS AS PART OF CORPORATE CUTBACKS 9312290025 930929 TEXAS JOURNAL TRACKING TEXAS THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR ROSE TO 10997 IN THE LATEST WEEK A 292 INCREASE FROM THE YEAREARLIER PERIOD THE ANNUAL CHANGE FELL SLIGHTLY FROM A REVISED 294 IN THE PRIOR WEEK THE FIRST SUCH DECLINE IN SEVEN WEEKS THE SLOWDOWN WAS MAINLY DUE TO A SLIGHT JUMP IN INITIAL UNEMPLOYMENT CLAIMS OVER THE YEAREARLIER WEEK 9312290024 930929 TEXAS JOURNAL HEARD IN TEXAS UNITED INSURANCE WINS FOLLOWING FOR OFFBEAT PROSE STRONG RESULTS BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS PERUSING UNITED INSURANCE COS' ANNUAL REPORT YOU QUICKLY REALIZE TWO THINGS THIS SPECIALTY INSURER HAS STRONG FINANCES AS WELL AS ONE OF THE WORLD'S QUIRKIEST ANNUALREPORT WRITERS FIRST THE FINANCES BY CONCENTRATING IN ACCIDENT HEALTH AND LIFE INSURANCE IN NICHE MARKETS SUCH AS COLLEGE STUDENTS AND THE SELFEMPLOYED UNITED HAS RACKED UP SOME IMPRESSIVE NUMBERS PERSHARE EARNINGS ZOOMED 99 47 AND 57 RESPECTIVELY IN THE PAST THREE YEARS WHILE ITS STOCK PRICE HAS NEARLY DOUBLED IN THE PAST 18 MONTHS NOW THE FUN STUFF IT TURNS OUT THE BLAND GRAY REPORT WHICH ESCHEWS THE USUAL GLITZY PHOTOGRAPHS AND CHARTS IS PENNED BY NONE OTHER THAN THE CHAIRMAN AND PRESIDENT RONALD L JENSEN AND THE CONTENTS SPICED WITH HOMESPUN PHILOSOPHICAL OBSERVATIONS AND EVEN A CARTOON ARE ANYTHING BUT BLAND HERE FOR EXAMPLE IS MR JENSEN ON LOTTERIES IT'S A STATE'S DEPLORABLE WAY OF TAXING THE POOR UNDER THE GUISE OF PROVIDING FUNDS FOR A WORTHY PURPOSE HE SAYS ADDING IN A FOOTNOTE THAT GJ HIS WIFE TELLS ME LOTTERY TICKETS ARE NOT SOLD AT NEIMAN MARCUS BUT HAVE YOU NOTICED HOW EASY IT IS TO BUY A LOTTERY TICKET WHERE FOOD STAMPS ARE ACCEPTED EXACTLY WHAT THESE MUSINGS HAVE TO DO WITH THE INSURANCE BUSINESS ISN'T ALWAYS APPARENT BUT THAT DOESN'T MATTER TO THE SMALL BUT ENTHUSIASTIC CLUB OF MONEY MANAGERS AND INVESTORS WHO HAVE PLACED A BET ON MR JENSEN BECAUSE HIS REPORT IS ALSO PACKED WITH THE STUFF THEY LIKE TO HEAR FOR INSTANCE WHILE UNITED INSURANCE EARNINGS HAVE SURGED IN RECENT YEARS INVESTORS NOTE ALSO THAT THE COMPANY HAS JUST 15 MILLION IN DEBT AND THAT EMPLOYEES OWN 32 OF THE SHARES WHILE MR JENSEN AND HIS FAMILY OWN ANOTHER THIRD AND IN AN INDUSTRY THAT SOMETIMES SEEMS TO SKIRT THE EDGES OF ACCEPTABLE ACCOUNTING STANDARDS MR JENSEN WRITES WE SUBSCRIBE TO THE THEORY THAT ACCOUNTANTS SHOULD NOT PRODUCE EARNINGS WHEN MANAGEMENT'S ACTIONS HAVE NOT HE'S A FANATIC ABOUT DISCLOSURE SO MUCH SO THAT HE DETAILS BY NAME EACH DIVISION MANAGER'S CONTRIBUTION TO OPERATING RESULTS THUS DO WE LEARN THAT BILLY E MCKENZIE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THE STUDENTINSURANCE ARM CONTRIBUTED 7 TO PRETAX EARNINGS IN 1992 A BIT OFF HIS PRIOR YEAR'S PACE MANY COGNOSCENTI LIKE WHAT THEY SEE CHARLES ALLMON EDITOR OF GROWTH STOCK OUTLOOK NEWSLETTER EXPECTS STRONG EARNINGS GAINS TO CONTINUE I'D BE HAPPY WITH 12 TO 17 ANNUAL GROWTH HE SAYS BUT I THINK THEY WILL EXCEED EVEN THAT INDEED IN THE FIRST SIX MONTHS OF THIS YEAR UNITED INSURANCE'S NET INCOME GREW 205 TO 153 MILLION OR 163 A SHARE FROM 127 MILLION OR 148 A SHARE A YEAR EARLIER THROUGH ACQUISITIONS AND MARKETING THE COMPANY HAS ADDED 58 NEW COLLEGES AND UNIVERSITIES IN ITS STUDENTINSURANCE DIVISION REINFORCING ITS POSITION AS THE LARGEST VENDOR IN THAT LUCRATIVE MARKET LIFEINSURANCE PREMIUMS DOUBLED TO 111 MILLION IN THE FIRST HALF BUT DOES THE STOCK STILL HAVE LEGS SOME INVESTORS THINK SO THOUGH IT HAS RECENTLY SOLD FOR ABOUT 24 A SHARE UP FROM AS LOW AS 850 IN 1991 ADJUSTED FOR A 2FOR1 SPLIT IT STILL TRADES AT A LOW MULTIPLE OF JUST 65 TIMES THE PREVIOUS 12 MONTHS' EARNINGS IT IS AN UNDERVALUED COMPANY SELLING AT A REASONABLE P/E AND GROWING RAPIDLY CARVING OUT A NICHE SAY MR ALLMON MR JENSEN SAYS HE TAKES HIS UNUSUAL APPROACH TO FINANCIAL REPORTING BECAUSE I'M WRITING FOR THE PEOPLE WHO OWN THIS COMPANY THE EMPLOYEES IN FACT HE SAYS UNITED INSURANCE WENT PUBLIC SO EMPLOYEES AND MANAGERS COULD PARTICIPATE IN THE COMPANY'S PROSPERITY IT SHOULD BE NOTED THAT MR JENSEN EARNED A SALARY LAST YEAR OF 1 OF COURSE HE ISN'T RUNNING THE COMPANY OUT OF THE GOODNESS OF HIS HEART IN ITS MORE CONVENTIONAL PROXY STATEMENT UNITED INSURANCE REPORTS HE IS SOLE OWNER OF UNITED GROUP ASSOCIATION WHICH SELLS HEALTH INSURANCE FOR AEGON USA A UNIT OF THE DUTCH AEGON NV UNITED GROUP RECEIVED 366 MILLION IN COMMISSIONS FROM AEGON LAST YEAR FINALLY WHILE IT'S UNLIKELY THAT MR JENSEN COULD SUPPORT HIMSELF IN HIGH STYLE AS A WRITER HE HAS EARNED SOME PRAISE THIS YEAR'S ANNUAL REPORT WON TOP HONORS FOR SMALLCAPITALIZATION INSURANCE COMPANIES FROM FIREMARK GROUP A PARSIPPANY NJ INSURANCE RESEARCH FIRM I HEARD ABOUT THAT MR JENSEN SAYS I'LL HAVE TO SEE WHAT THAT WAS ALL ABOUT IMCO RECYCLING INVESTORS MIGHT BE TEMPTED TO DUMP THEIR SHARES AFTER GLANCING AT THE NEARBY INSIDER ACTIVITY CHART WHICH NOTES THE SALE OF 17 MILLION SHARES FOR MORE THAN 20 MILLION SEE ACCOMPANYING CHART WSJ SEPT 29 1993 BUT THAT SALE WASN'T BY A COMPANY INSIDER IT CAME FROM MERRILL LYNCH INTERFUNDING A LITTLEKNOWN LENDING OPERATION THAT SPECIALIZED IN LOANS FOR LEVERAGED BUYOUTS MERRILL BEGAN LIQUIDATING THE UNIT RECENTLY BECAUSE OF WRITEDOWNS FOR UNDERPERFORMING LOANS IMCO HOWEVER WAS REGARDED AS ONE OF INTERFUNDING'S MORE PROFITABLE INVESTMENTS AT ONE POINT IMCO OFFICERS SAY INTERFUNDING OWNED 25 OF THE IRVING RECYCLER THAT'S WHY IT WAS CONSIDERED AN INSIDER THIS IS IN NO WAY A BAD REFLECTION ON US THE COMPANY SAYS FIRST CITY BANCORP OF TEXAS FILED SUIT FRIDAY AGAINST THE FEDERAL DEPOSIT INSURANCE CORP AS EXPECTED FIRST CITY IS SEEKING 3 BILLION FROM THE AGENCY FOR ARBITRARILY WIPING OUT MORE THAN 480 MILLION OF SHAREHOLDER AND CREDITOR EQUITY AND FOR DISRUPTING THE BUSINESS OF A VIABLE FRANCHISE THE FDIC SEIZED THE HOUSTON BANK HOLDING COMPANY LAST OCTOBER THE FDIC HAS SAID IT OWES FIRST CITY AS MUCH AS A 60 MILLION SURPLUS RESULTING FROM AN UNEXPECTED 434 MILLION PREMIUM THE AGENCY RECEIVED FROM SELLING FIRST CITY'S ASSETS FIRST CITY PEGS THE SURPLUS AT NEARLY NINES TIMES THAT AMOUNT FIRST CITY'S PREFERRED B SHARES WERE RECENTLY TRADING BETWEEN 21 AND 22 SHARES OF DALLASBASED GREYHOUND LINES FELL 30 LAST WEEK AFTER MORGAN STANLEY DOWNGRADED THE STOCK TO NEUTRAL FROM BUY ON THURSDAY CITING DISAPPOINTING EARNINGS PROSPECTS GREYHOUND WHICH CLOSED THE WEEK AT 11625 REPORTED THAT AUGUST RIDERSHIP AS MEASURED IN REVENUE PASSENGER MILES FELL MORE THAN 12 THE COMPANY SAID IT EXPECTS 1993 EARNINGS TO BE FLAT TO SLIGHTLY IMPROVED FROM LAST YEAR'S 110 A SHARE BANCTEC SHARES GAINED 17 TO 2225 LAST WEEK AFTER THE DALLAS COMPANY ANNOUNCED IT HAD PURCHASED A 33 EQUITY STAKE IN SERVIBANCA SA SANTIAGO CHILE WHICH PROCESSES EIGHT MILLION CHECKS A MONTH FOR CHILEAN BANKS THE PURCHASE GIVES BANCTEC AN ENTRY INTO THE BURGEONING SOUTH AMERICAN MARKET WHERE SERVIBANCA WILL DISTRIBUTE BANCTEC'S IMAGE AND DOCUMENTPROCESSING SYSTEMS PERSHARE NET INCOME 9312290014 930922 TEXAS JOURNAL IT WAS FLEETING BUT FOR BUSINESS IT WAS A NICE LITTLE TAX BREAK BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL THE LATEST CHANGE IN TEXAS' PUBLICSCHOOL FINANCE SYSTEM IS PROVING COSTLY TO THE STATE'S BUSINESSES MORE THAN 34 BILLION OF PREVIOUSLY EXEMPT INVENTORY FROM COMPUTERS TO AIR CONDITIONERS TO PILLOWS WAS ASSESSED FOR BUSINESS PROPERTY TAXES THIS YEAR BY TEXAS SCHOOL DISTRICTS THE REASON A FREEPORT TAX BREAK TIED TO THE OLD SYSTEM OF COUNTY EDUCATION DISTRICTS DIED IN MOST AREAS WHEN THE STATE'S VOTERS SCUTTLED THE SYSTEM THIS SUMMER TEXAS IS ONE OF ONLY 11 STATES THAT INCLUDE BUSINESS INVENTORIES IN PROPERTYTAX ASSESSMENTS ACCORDING TO COMMERCE CLEARING HOUSE INC A RIVERWOODS ILL LEGAL PUBLISHER THE FREEPORT TAX BREAK EXEMPTS FROM SCHOOL TAXES CERTAIN INVENTORIES THAT ARE MANUFACTURED OR STORED IN TEXAS BUT REMAIN IN THE STATE FOR FEWER THAN 175 DAYS IT IS OFFERED HOWEVER BY ONLY ONEFIFTH OF THE STATE'S LOCAL SCHOOL DISTRICTS WHICH HAVE TAKEN OVER THE COUNTY EDUCATION DISTRICTS' TAXATION DUTIES THIS YEAR THAT MEANS HUNDREDS OF TEXAS BUSINESSES WILL OWE A TOTAL OF AT LEAST 316 MILLION MORE IN SCHOOL TAXES WHEN THEY GET THEIR TAX BILLS STARTING NEXT MONTH ACCORDING TO THE STATE COMPTROLLER BUSINESSES ARE GETTING SLAMMED THIS YEAR SAYS MIKE DONNELL DIRECTOR OF PROPERTY TAXES FOR THE DALLAS OFFICE OF ACCOUNTANTS ARTHUR ANDERSEN & CO I'M SURE IT'S GOING TO MESS UP A LOT OF TAX ESTIMATES WHEN THEY START GETTING THEIR TAX BILLS BUT IT ISN'T EXACTLY A WELLESTABLISHED TAX BREAK THAT IS BEING LOST LOCAL SCHOOL DISTRICTS COULD FIRST GRANT THE FREEPORT EXEMPTION IN 1990 FEW DID SO IT BECAME AVAILABLE STATEWIDE ONLY TWO YEARS AGO WHEN TEXAS SET UP THE COUNTY EDUCATION DISTRICTS THE VOTE TO KILL THE DISTRICTS HAS MADE THE TAX BREAK A RARITY AGAIN AMONG THE HARDEST HIT ARE SOME OF THE STATE'S HIGHTECH COMPANIES LIKE COMPAQ COMPUTER CORP IN HOUSTON AND DELL COMPUTER CORP IN AUSTIN WHICH USUALLY HAVE HIGH INVENTORIES OF TEXASMADE GOODS HEADED QUICKLY OUT OF STATE THIS YEAR THE TAX BREAK WOULD HAVE SAVED COMPAQ ABOUT 34 MILLION IN TAXES ON 377 MILLION IN PREVIOUSLY EXEMPT INVENTORY ACCORDING TO LOCAL APPRAISAL RECORDS THE COMPANY SAYS IT WILL NOW TRY TO REDUCE INVENTORY BEFORE EACH JAN 1 ASSESSMENT PILLOWTEX CORP IN DALLAS ACTED ALREADY ONCE IT BECAME CLEAR THAT THE SYSTEM OF COUNTY EDUCATION DISTRICTS WAS IN TROUBLE TO BEAT THIS YEAR'S ASSESSMENT THE COMPANY LATE LAST YEAR SHIPPED SOME OF ITS PILLOWS AND OTHER GOODS TO STORAGE FACILITIES IN CALIFORNIA AND PENNSYLVANIA WHICH DON'T TAX INVENTORY WE DIDN'T GET RID OF ALL OF IT BUT WE MADE A DENT SAYS ASSISTANT CONTROLLER GARY MCVETY IT ENCOURAGES US NOT TO STORE SO MUCH INVENTORY IN TEXAS IN GENERAL THE TAX BREAK WILL BE AVAILABLE IN SOME SCHOOL DISTRICTS MAINLY IN THE EL PASO FORT WORTH WICHITA FALLS DENTON AND SAN ANTONIO AREAS BUSINESSES ELSEWHERE SAY THAT'S UNFAIR YOU DON'T WANT YOUR COMPETITORS PAYING LESS TAX SAYS A SPOKESMAN FOR ALCATEL NETWORK SYSTEMS INC A TELECOMMUNICATIONS MANUFACTURER IN RICHARDSON THE TAX BREAK SAVED ALCATEL MORE THAN 477000 LAST YEAR ACCORDING TO LOCAL RECORDS BECAUSE THE FREEPORT EXEMPTION WAS WIDELY AVAILABLE FOR SUCH A SHORT TIME ITS LOSS WON'T HAVE GREAT IMPACT SOME BUSINESS LEADERS SAY IN ADDITION MANY COMPANIES DIDN'T APPLY FOR IT BECAUSE IT INVOLVED ADDITIONAL DISCLOSURE IT WAS A WINDFALL FOR BUSINESSES WHEN THEY HAD IT SAYS PATRICK JANKOWSKI SENIOR RESEARCH ANALYST WITH THE GREATER HOUSTON PARTNERSHIP A LOCAL BUSINESS GROUP NOW IT'S BACK TO BUSINESS AS USUAL 9312280127 931228 US NORTH KOREA ARE SAID TO BE NEAR ACCORD LEADING TO NUCLEAR INSPECTIONS BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL US AND NORTH KOREAN NEGOTIATORS ARE CLOSE TO AN AGREEMENT THAT WOULD LEAD TO AN INTERNATIONAL INSPECTION OF NORTH KOREA'S NUCLEAR FACILITIES AND A ROUND OF MOREGENERAL TALKS BETWEEN THE TWO NATIONS AS EARLY AS FEBRUARY IN GENEVA ACCORDING TO DIPLOMATS AND OFFICIALS CLOSE TO THE TALKS NORTH KOREA WOULD ALSO AGREE TO CONTINUE WORKINGLEVEL DIPLOMATIC CONTACTS WITH SOUTH KOREA WHICH HAVE BEEN UNDER WAY FOR SEVERAL WEEKS NORTH KOREA HASN'T YET RESPONDED TO AN OFFER PRESENTED TO IT LAST WEEK IN NEW YORK BY THE US HOWEVER THE GAP BETWEEN THE TWO SIDES IS DESCRIBED AS RAPIDLY NARROWING ON THE MAJOR ISSUES THE TECHNICAL DETAILS OF THE INSPECTION WHICH WOULD BE CARRIED OUT BY THE VIENNABASED INTERNATIONAL ATOMIC ENERGY AGENCY ARE BEING WORKED OUT ACCORDING TO DIPLOMATS INVOLVED A KEY PLAYER IN THE FINAL OUTCOME IS HANS BLIX THE HEAD OF THE IAEA WHO HAS INSISTED THAT HIS AGENCY BE ALLOWED TO CARRY OUT A SOCALLED REGULAR INSPECTION OF NORTH KOREA'S NUCLEAR FACILITIES SIMILAR TO ONE CARRIED OUT LAST FEBRUARY THE NORTH KOREANS HAVE BEEN BALKING OVER PARTS OF SUCH AN INSPECTION A REGULAR INSPECTION WOULDN'T TOUCH TWO FACILITIES THAT THE IAEA SUSPECTS TO BE WASTE DUMPS FROM PREVIOUS CLANDESTINE NUCLEARWEAPONS WORK AT YONGBYON NORTH KOREA'S NUCLEARRESEARCH CENTER BUT THE INSPECTION WOULD SHED LIGHT ON RECENT ACTIVITIES AT THE CENTER THE OUTCOME OF THE TALKS WILL RAISE DIFFICULT ISSUES FOR BOTH SIDES THE WORST THING THAT COULD HAPPEN WOULD BE TO HAVE SOME WHITEWASH INSPECTION THAT ALLEGES NOTHING COULD BE FOUND BECAUSE WE LOOKED WHERE THE LIGHT WAS AND NOT WHERE THE KEY WAS HIDDEN ASSERTS FRED IKLE AN UNDERSECRETARY OF DEFENSE IN THE REAGAN ADMINISTRATION NOT ONLY WOULD SUCH A MOVE CREATE A BAD PRECEDENT FOR IAEA DEALINGS WITH OTHER ROGUE NATIONS IT WOULD BUY TIME FOR NORTH KOREA TO CONTINUE WHAT US INTELLIGENCE OFFICIALS HAVE IDENTIFIED AS A NUCLEARWEAPONS PROGRAM SAYS DR IKLE YOU HAVE TO THINK OF WAYS TO ACCELERATE THE DEMISE OF THAT REGIME THE NORTH KOREANS WANT TO MAKE A DEAL BELIEVES JOSEPH BERMUDEZ A FORMER US GOVERNMENT ANALYST OF NORTH KOREA DIRE ECONOMIC CONDITIONS HE THINKS ARE MAKING NORTH KOREAN LEADERS MORE OPEN TO SUGGESTIONS OF OUTSIDE AID FROM THE WEST ANY FORM OF WESTERN AID THAT OPENS UP NORTH KOREA TO THE INFLUENCE OF OUTSIDERS HOWEVER COULD ENDANGER THE EFFORTS OF KIM ILSUNG NORTH KOREA'S DICTATOR TO PAVE THE WAY FOR THE SUCCESSION OF HIS SON KIM JONGIL MR BERMUDEZ NOTES BY KEEPING RIGID CONTROL OVER OUTSIDERS AND BANNING OUTSIDE MEDIA NORTH KOREA HAS KEPT A POLITICAL OPPOSITION FROM FORMING WHILE THE CENTRAL INTELLIGENCE AGENCY HAS SAID NORTH KOREA MAY HAVE ENOUGH PLUTONIUM FOR ONE OR TWO BOMBS THERE IS WIDESPREAD DISAGREEMENT AMONG EXPERTS OVER WHETHER NORTH KOREA HAS ACTUALLY MADE A DELIVERABLE NUCLEAR WEAPON A WEAPON WOULD REQUIRE A RELATIVELY LIGHTWEIGHT DURABLE DEVICE THAT MAY BE BEYOND NORTH KOREA'S CURRENT LEVEL OF EXPERTISE AT THIS POINT A NUCLEAR WEAPON IN NORTH KOREAN HANDS MAY BE JUST AS DANGEROUS TO THEM AS ANYBODY ELSE MR BERMUDEZ SAYS UNDER THE TERMS OF THE NEGOTIATIONS THE US WOULD AGREE TO FORGO TEAM SPIRIT AN ANNUAL MILITARY EXERCISE CARRIED OUT WITH SOUTH KOREAN FORCES SINCE THE PENTAGON HASN'T FUNDED TEAM SPIRIT FOR THE CURRENT FISCAL YEAR MOST ANALYSTS BELIEVE THE EXERCISE SCHEDULED IN MARCH ALREADY HAS BEEN WRITTEN OFF BY BOTH SIDES NORTH KOREA USED LAST YEAR'S TEAM SPIRIT AS A PRETEXT FOR WITHDRAWING FROM THE NUCLEAR NONPROLIFERATION TREATY UNDER WHICH IT HAD AGREED TO INSPECTIONS OF ITS NUCLEAR FACILITIES AFTER US PRODDING NORTH KOREA SUSPENDED ITS WITHDRAWAL CREATING A LEGAL STATUS THAT NORTH KOREA INSISTS LEAVES IT WITH NO OBLIGATIONS UNDER THE TREATY 9312280126 931228 GEORGIAPACIFIC UNIT BUYS PLANT ATLANTA GEORGIAPACIFIC RESINS INC A UNIT OF GEORGIAPACIFIC CORP SAID IT HAS PURCHASED A FORMALDEHYDE MANUFACTURING PLANT AT HEALING SPRINGS NC FROM DUPONT CO TERMS WEREN'T DISCLOSED IN A NEWS RELEASE GEORGIAPACIFIC SAID THE FACILITY HAS A MANUFACTURING CAPACITY OF 175 MILLION POUNDS A YEAR OF FORMALDEHYDE 9312280125 931228 TRAVEL EARTHLINGS WELCOME' IN TINY NEVADA TOWN WHERE MYSTERIOUS AIRCRAFT OFTEN FLY OVERHEAD BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL RACHEL NEV LOTS OF TOWNS GET A TOURISM BOOST FROM SPECIAL ATTRACTIONS LOS ANGELES HAS HOLLYWOOD WASHINGTON THE WHITE HOUSE AND CAPITOL HILL AND JUST BEYOND THE JAGGED BROWN GROOM MOUNTAINS THIS TINY DESERT HAMLET HAS ITS TOPSECRET AIRSTRIP AVIATION BUFFS STUDY THE ALMOSTNIGHTLY LIGHT SHOW ALONG RACHEL'S SOUTHWEST HORIZON FOR TRACES OF THE ELUSIVE AURORA A FUTURISTIC SPY PLANE SUPPOSEDLY FLYING FROM AREA 51 OF THE VAST NELLIS AIR FORCE BASE BOMBING RANGE UFO SEEKERS HOPE TO CATCH A GLIMPSE OF EVEN MORE EXOTIC CRAFT THE CAPTURED ALIEN SAUCERS THEY BELIEVE THE US IS TESTING OUT THERE NEAR WHAT APPEARS ON MAPS ONLY AS GROOM DRY LAKE SO WHEN THE AIR FORCE RECENTLY INITIATED ACTION TO BAR THE PUBLIC FROM HILLTOPS NEAR THE HUSHHUSH FACILITY IT DREW SPECIAL ATTENTION FROM GLENN CAMPBELL AND PAT AND JOE TRAVIS IN THIS CLUSTER OF SEVERAL DOZEN MOBILE HOMES WITH NO MAYOR OR CHAMBER OF COMMERCE THE THREE ENTREPRENEURS CONSTITUTE THE TOWN'S TOURISM INDUSTRY THE TRAVISES OWNERS OF THE LITTLE A'LE'INN PRONOUNCED ALEEINN FIGURE THAT SEVERAL THOUSAND EXTRA VISITORS ANNUALLY STOP AT THEIR MOTEL RESTAURANT AND BAR BECAUSE OF THE AERIAL PHENOMENA THE INN REWARDS THEM WITH A MINIMONUMENT TO BOTH US AND EXTRATERRESTRIAL AVIATION ITS WALLS ARE ADORNED WITH UFO SNAPSHOTS ALONGSIDE GOVERNMENTISSUE PHOTOS OF F117 STEALTH FIGHTERS SR71S U2S AND OTHER JETS THOUGHT TO HAVE FLOWN HERE IN THEIR SECRET DAYS AND MR CAMPBELL'S VIEWER'S GUIDE TO AREA 51 SAYS THE RECENT NEW ENGLAND TRANSPLANT IS A BESTSELLER AT LEAST IN LINCOLN COUNTY THE 1000 GUIDEBOOKS SOLD AT 15 APIECE TELL HOW TO CLIMB WHITE SIDES HILL AND FREEDOM RIDGE FOR VIEWS OF THE GROOM LAKE RUNWAY AND HANGAR COMPLEX A WARNING IS INCLUDED TO AVOID THE CURRENT RESTRICTED ZONE PROTECTED BY CAMERAS SENSORS AND ARMED GUARDS TO PUT IT BLUNTLY THEY CAN KILL YOU THE BOOK SAYS THE TRAVISES AND MR CAMPBELL HAVE ACTUALLY EXPERIENCED MORE BUSINESS SINCE THE AIR FORCE ASKED THE INTERIOR DEPARTMENT TO RESTRICT 3900 ACRES OUTSIDE THE NELLIS BOUNDARY A MOVE THE MILITARY SIMPLY SAYS IS NECESSARY FOR THE SAFE AND SECURE OPERATION OF THE ACTIVITIES ON THE NELLIS RANGE SOME VISITORS COME BECAUSE OF PUBLICITY NOTING THAT FOR NOW IT'S STILL POSSIBLE TO TAKE A LEGAL PEEK AT A BASE THE GOVERNMENT WON'T CONFIRM EXISTS BUT WHATEVER THE LONGERTERM THREAT TO THIS LITTLE SLICE OF NEVADA TOURISM THE ISSUE HIGHLIGHTS THE SOMEWHAT DELICATE SYMBIOSIS THAT EXISTS BETWEEN THE TWO ENTERPRISES THE GUIDEBOOK WRITER A UFO SKEPTIC WHO IS CURRENTLY ENGAGED IN A SPAT WITH THE NONSKEPTICAL TRAVISES FIRST CAME HERE LAST YEAR TO INVESTIGATE FLYINGSAUCER STORIES HAVING JUST QUIT HIS JOB AS A SOFTWARE DESIGNER FOR BOSTON TREASURY SYSTEMS INC MR CAMPBELL TRADED HIS STOCK IN THE CLOSELY HELD COMPANY FOR THE MUTUAL FUNDS THAT NOW SUPPORT HIS DESKTOPPUBLISHING BUSINESS A WALKING GUIDEBOOK HIMSELF MR CAMPBELL SOMETIMES TAKES VISITORS ON HIKES TO THE GROOM LAKE VIEWPOINTS AS DO SEVERAL CALIFORNIANS WHO MAKE THE WHITE SIDES HILLTOP AND LITTLE A'LE'INN PART OF UFOORIENTED TOURS TO THIS AREA WITH DARKNESS DESCENDING DURING ONE RECENT HIKE TO FREEDOM RIDGE MR CAMPBELL SEES A SERIES OF BRIGHT ORANGE GLOBES BRIEFLY GLOWING OVERHEAD FADING LIKE FIREWORKS THEN REAPPEARING THESE HE EXPLAINS ARE SPECIAL FLARES THAT AIRCRAFT USE DURING EVASIVE MANEUVERS IN STANDARD NELLIS EXERCISES EERIE WHITE LIGHTS THAT SEEM TO HOVER ABOVE THE MOUNTAINS STARTING JUST AFTER 4 AM ARE FROM A JANET THAT'S AIRTRAFFICCONTROL LINGO THE GUIDEBOOK SAYS FOR THE BOEING 737S OF A MYSTERIOUS AIRLINE THAT OPERATES BETWEEN LAS VEGAS AND GROOM LAKE EACH WEEKDAY MOST OF MR CAMPBELL'S ENERGY GOES INTO THE GUIDEBOOK WHICH IS UPDATED REGULARLY A LAS VEGAS GUIDE IS ALSO DUE OUT SOON FOR NOW PROFIT IS NOT OUR GOAL A POSTSCRIPT EXPLAINS OUR PRICES ARE INTENDED ONLY TO REIMBURSE OUR COSTS AND SUPPORT OUR CONTINUED RESEARCH AS FOR THE TRAVISES THEY PRIDE THEMSELVES ON BEING THE FIRST OF MANY RESTAURANT OPERATORS ON THIS SITE TO OPERATE IN THE BLACK THE COUPLE CAME THE 150 MILES NORTH FROM LAS VEGAS IN 1988 TO BUY WHAT WAS THEN THE PROSAICALLY NAMED RACHEL BAR & GRILL THEIR 11 MOTEL ROOMS SOON TO BE 14 RENT FOR 25 A NIGHT SOUVENIRS BEARING THE INN'S EARTHLINGS WELCOME SLOGAN ARE PLENTIFUL AND THEIR PROMOTIONAL SAVVY HAS LED TO OCCASIONAL NATIONAL PUBLICITY THE TRAVISES EVEN HOST AN ANNUAL UFO CONVENTION IN APRIL AT LEAST ONE VISITING SKYWATCHER STOPS BY EVERY DAY SAYS MR TRAVIS WHO RECOMMENDS THE 275 ALIEN BURGER AS OUT OF THIS WORLD NO THEORY ABOUT AREA 51 IS CONSIDERED STRANGE HERE IF GUESTS TELL OF BEING ABDUCTED BY A CRAFT THE INNKEEPERS OFTEN SPIN THEIR OWN TALE OF ONCE BEING STARTLED BY A BEAM OF LIGHT PENETRATING THE SOLID BACK DOOR WE'VE HAD THREE PSYCHICS TELL ME THE ENTITY IS STILL HERE MRS TRAVIS SAYS AND THE PRESENCE IS NOW SO FAMILIAR THAT WE CALL HIM ARCHIBALD A LESSFAMILIAR PRESENCE THESE DAYS IS MR CAMPBELL WHILE THE LITTLE A'LE'INN SELLS HIS BOOK MR CAMPBELL FOR A TIME BECAME PERSONA NON GRATA AT THE MOTEL BECAUSE OF AN ARGUMENT OVER A MATTER THAT NEITHER HE NOR THE TRAVISES WILL DISCUSS BUT THE COUPLE IS KNOWN TO BE LESS THAN THRILLED WITH MR CAMPBELL'S IRREVERENCE ABOUT THE INN AND THE TOWN AN AMUSING PASTIME SUGGESTS ONE FOOTNOTE IN THE CAMPBELL GUIDEBOOK IS TO COUNT HOW MANY GUNS YOU SEE HIDDEN IN NOOKS AND CRANNIES BEHIND THE BAR THE BOOK'S VIEW OF RACHEL A DIVERSE PLACE WELCOMING PEOPLE OF ALL POLITICAL PERSUASIONS AS LONG AS THEY ARE NOT LIBERAL AND IT SAYS LOCALS THINK ENVIRONMENTALISTS TASTE AS GOOD COOKED AS ROAST SPOTTED OWL THE TRAVISES AND MR CAMPBELL ALL HOPE HOWEVER THAT CUTTING OFF PUBLIC ACCESS TO THE GROOM LAKE VIEWPOINTS WON'T HURT BUSINESS WHATEVER IS BEING HIDDEN BEYOND THE MOUNTAINS DURING THE DAYTIME MRS TRAVIS NOTES IS BEING FLOWN RIGHT OVER OUR HEADS AT NIGHT 9312280124 931214 THE WRONG FIX BY ROBERT L WOODSON SR SURGEON GENERAL JOYCELYN ELDERS'S RECENT COMMENTS THAT AMERICA'S CRIME RATE COULD DROP MARKEDLY IF ILLICIT DRUGS WERE LEGALIZED EPITOMIZES THE TRAGIC FAILURE OF ACCOMMODATIONISTS TO TAKE A MORAL STAND AGAINST AN IMMORAL ACTIVITY TRAGICALLY THE PERSON WHO SHOULD BE AT THE HELM OF A MASSIVE EFFORT TO DISSUADE A NEW GENERATION FROM INVOLVEMENT WITH DRUGS CANNOT SEEM TO BRING HERSELF TO DECLARE THAT ACTIONS DETRIMENTAL TO ONE'S PERSONAL HEALTH AND TO THE WELLBEING OF SOCIETY ARE WRONG AND DESERVE NO TOLERANCE DR ELDERS ASSUMES DRUG USE TO BE AN UNAVOIDABLE GIVEN FOR WHICH THE BEST GOAL IS SIMPLE DAMAGE CONTROL IN ADDITION DR ELDERS'S ARGUMENT IN FAVOR OF DRUG LEGALIZATION IS RIDDLED WITH FACTUAL ERRORS FOR EXAMPLE EXPERIMENTS WITH LEGALIZATION ABROAD HAVE NOT BEEN THE SUCCESSES SHE ASSUMES THEM TO BE THE MAJORITY HAVE NOW BEEN REVERSED AS WAS THE FAILED NEEDLE PARK EXPERIMENT IN ZURICH A FREEDRUGS ZONE DESIGNED TO CONTROL DRUG USE AND STEM THE SPREAD OF AIDS PREDICTABLY THIS PARK QUICKLY BECAME A NEST OF CHAOS AND LICENTIOUSNESS THAT SPILLED INTO THE SURROUNDING COMMUNITY NEEDLES WERE PASSED AROUND DESPITE THE AVAILABILITY OF A CLEANNEEDLE PROGRAM AND THE USED BLOODY NEEDLES WERE CAST ON CURBSIDES AND SURROUNDING SIDEWALKS JEOPARDIZING INNOCENT PEDESTRIANS DR ELDERS SAYS THAT LEGALIZING DRUGS ABROAD HAS NOT INCREASED DRUG USE BUT HUBERT WILLIAMS PRESIDENT OF THE WASHINGTONBASED POLICE FOUNDATION SAYS THAT A MORE RELEVANT EXAMPLE IS OUR NATION'S OWN PAST AND TRAJECTORY SINCE THE REPEAL OF PROHIBITION THE AMOUNT OF PEOPLE USING ALCOHOL HAS INCREASED SIGNIFICANTLY AND THERE'S NO REASON TO THINK THE NUMBER OF PEOPLE USING DRUGS WILL NOT INCREASE SIGNIFICANTLY IF DRUGS ARE LEGALIZED IN A TWIST OF LOGIC DR ELDERS REASONS THAT BECAUSE MANY TIMES THEY'RE ROBBING STEALING AND ALL OF THESE THINGS TO GET MONEY TO BUY DRUGS LEGALIZATION WOULD HELP BY MAKING DRUGS A LITTLE LESS EXPENSIVE BUT EVEN IF DRUGS WERE LEGALIZED REGULATIONS REGARDING THEIR USE WOULD BE ENOUGH TO ENGENDER A BLACK MARKET AND RELATED CRIMINAL ACTIVITY RATHER THAN CONDUCT A STUDY ON THE POSSIBLE EFFECTS OF LEGALIZING DRUGS DR ELDERS SHOULD DIRECT HER RESOURCES TO ANOTHER TYPE OF RESEARCH IN THE SAME AFFLICTED NEIGHBORHOODS WHERE MEN WOMEN AND CHILDREN HUDDLE ON STREET CORNERS AND IN DILAPIDATED BUILDINGS TO DEAL AND USE DRUGS THERE ARE OTHERS WHO HAVE NOT SUCCUMBED TO THEIR LURE THESE MODELS OF SUCCESS SHOULD BE THE FOCUS OF DR ELDERS'S SCRUTINY AND THEIR BEHAVIOR VISION AND VALUES THE CORNERSTONE FOR DRUGPREVENTION PROGRAMS IN NUMEROUS CASES THROUGHOUT THE NATION LOWINCOME PEOPLE WHO HAVE OPENED THEIR HOMES AS SAFE HAVENS FOR NEIGHBORHOOD CHILDREN HAVE PROVED THAT PERSONAL INVESTMENT AND THE CONSISTENT EXAMPLE SET BY JUST ONE ADULT CAN CHANGE THE FUTURES OF INNERCITY CHILDREN EVEN THOSE WITH UNSTABLE HOME LIVES THE COMMUNITY ACTIVISTS WITH FIRSTHAND KNOWLEDGE OF WHAT SUCCEEDS IN REACHING YOUNG PEOPLE SHOULD BE AT THE FOREFRONT IN DESIGNING DRUGPREVENTION POLICIES THE PROBLEM AT ITS ROOT IS A MATTER OF VALUES AND MORALS AND THOSE WHO HAVE CLAIMED SUCCESS ARE THOSE WHO HAVE ADDRESSED THE ISSUE ON THIS LEVEL THE SURGEON GENERAL SHOULD ALSO TAKE HER NOTEPAD TO SAN ANTONIO TO STUDY THE ACTIVITIES OF REHABILITATED ADDICT FREDDIE GARCIA WHOSE OUTREACH PROGRAM HAS CHANGED THE LIVES OF MORE THAN 13000 ADDICTS IN ITS 25 YEARS OF OPERATION SHE SHOULD THEN TRAVEL TO HARTFORD CONN TO LEARN FROM RAUL GONZALES ALSO A RECOVERED ADDICT WHO HAS REACHED OUT TO THOUSANDS OF SUBSTANCE ABUSERS THROUGH A MEN'S RESIDENTIAL CENTER A WOMEN'S MISSION AND A CENTER THAT INCLUDES ACADEMIC VOCATIONAL AND SOCIAL DEVELOPMENT TRAINING DR ELDERS SHOULD TAKE THE TIME TO SPEAK WITH A FEW OF MR GARCIA'S FORMER HARDCORE ADDICTS WHO ARE NOW LEADING PRODUCTIVE LIVES AND TO SOME OF THE HUNDREDS OF FAMILIES REUNIFIED AND HEALED THROUGH MR GONZALES'S EFFORTS SHE SHOULD ASK THEM IF THEIR LIVES AND THE LIVES OF THEIR CHILDREN WOULD HAVE BEEN ANY BETTER HAD SOMEONE LEGALIZED THE DRUGS THAT HAD ONCE CONTROLLED THEIR DESTINIES MR WOODSON IS PRESIDENT OF THE NATIONAL CENTER FOR NEIGHBORHOOD ENTERPRISE IN WASHINGTON SEE RELATED LETTERS LETTERS TO THE EDITOR LEGALIZED DRUGS IDEA DESERVES FAIR HEARING WSJ DEC 28 1993 9312140085 YY93 MM12 9312280123 931228 TIFFANY WORLDWIDE SALES RISE NEW YORK TIFFANY & CO SAID WORLDWIDE SALES FOR THE NOV 1 TO DEC 25 PERIOD ROSE 31 FROM THE COMPARABLE PERIOD A YEAR EARLIER IN A NEWS RELEASE THE COMPANY SAID ITS US RETAIL SALES ROSE 16 DIRECT MARKETING SALES FELL 7 AND INTERNATIONAL RETAIL SALES ROSE 102 COMPARED WITH THE 1992 PERIOD THE COMPANY DID NOT RELEASE DOLLAR FIGURES FOR DECEMBER SALES 9312280122 931201 RULE OF LAW DON'T RICO PROLIFERS BY JAY ALAN SEKULOW WHEN THE SUPREME COURT SITS TO HEAR ARGUMENTS NEXT WEDNESDAY THE FIRST CASE ON ITS AGENDA WILL AGAIN PUT THE COURT AT THE CENTER OF TWO CONTENTIOUS ISSUES LEGALIZED ABORTION AND THE SCOPE AND MEANING OF RICO THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT IN NATIONAL ORGANIZATION OF WOMEN V JOSEPH SCHEIDLER THE COURT CONFRONTS THE DECISIONS OF TWO LOWER FEDERAL COURTS WHICH RULED THAT RICO DID NOT APPLY TO THE ANTIABORTION PROTEST ACTIVITIES OF GROUPS SUCH AS OPERATION RESCUE AND PROLIFE LEADERS SUCH AS CHICAGO'S JOSEPH SCHEIDLER AUTHOR OF A MANUAL DETAILING 99 METHODS FOR CLOSING ABORTION FACILITIES THE LOWER COURTS IN THIS CASE CONSTRUED RICO TO REQUIRE THAT THERE BE SOME ECONOMIC MOTIVATION ON THE PART OF THOSE WHO COULD BE HELD CIVILLY LIABLE UNDER THE STATUTE BECAUSE PROLIFE ACTIVISTS ARE MOTIVATED BY THEIR OPPOSITION TO ABORTION NOT BY THE DESIRE TO CASH IN ON THAT OPPOSITION THE RICO LAWSUIT FILED BY NOW WAS DISMISSED THE SUPREME COURT WILL EXAMINE NOW'S CLAIM THAT IT SHOULD BE PERMITTED TO PROCEED WITH ITS LITIGATION OF RICO CLAIMS AGAINST ANTIABORTION PROTESTERS THE ALLIANCE AGAINST RICO IS MOST UNUSUAL CONSERVATIVE PROLIFE ORGANIZATIONS WHICH I REPRESENT HAVE JOINED FORCES WITH ORGANIZATIONS SUCH AS PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS COMMUNITY FOR CREATIVE NONVIOLENCE AND FEMINISTS FOR ANIMAL RIGHTS THERE IS COMMON GROUND BETWEEN TWO FACTIONS THAT USUALLY ARE ON OPPOSITE SIDES OF AN ISSUE FOR ONE SIMPLE REASON RICO IS BAD LAW WHEN APPLIED TO A SOCIAL PROTEST MOVEMENT THE SUPREME COURT IS BEING ASKED TO UPHOLD A 1992 RULING FROM THE SEVENTH CIRCUIT WHICH THREW OUT A LAWSUIT AIMED AT PROLIFE GROUPS WHO ATTEMPT TO STOP ABORTION THROUGH AGGRESSIVE METHODS OF PROTEST IN THAT SEVENTH CIRCUIT CASE THE COURT RULED THAT RICO APPLIES ONLY TO ACTS HAVING A FINANCIAL RATHER THAN A POLITICAL OR SOCIAL MOTIVE THE REASONING BEHIND THE SEVENTH CIRCUIT'S DECISION IS THE SAME ARGUMENT THAT WILL BE PRESENTED TO THE SUPREME COURT NEXT WEDNESDAY THE LAW IS CLEAR RICO WAS CREATED TO BATTLE ORGANIZED CRIME AND TO TAKE THE PROFIT OUT OF CRIME IN RUSSELLO V US 1983 THE SUPREME COURT ACKNOWLEDGED THE PRIMARY PURPOSE OF RICO WAS TO STRIKE AT THE SOURCE OF ECONOMIC POWER OF ORGANIZED CRIME AND RACKETEERS IN RUSSELLO THE COURT SAID CONGRESS COULD NOT HAVE HOPED SUCCESSFULLY TO ATTACK ORGANIZED CRIME'S ECONOMIC ROOTS WITHOUT REACHING RACKETEERING PROFITS DURING THE CONGRESSIONAL DEBATES THE SOURCES AND MAGNITUDE OF ORGANIZED CRIME'S INCOME WERE EMPHASIZED REPEATEDLY THE BROADER GOAL WAS TO REMOVE THE PROFIT FROM ORGANIZED CRIME BY SEPARATING THE RACKETEER FROM HIS DISHONEST GAINS IN OTHER WORDS RICO IS A STATUTORY WEAPON CRAFTED TO REMEDY THE ACQUISITION OF ECONOMIC POWER BY MEANS OF SERIOUS CRIMINAL BEHAVIOR TO USE RICO IN THE ENTIRELY DIFFERENT CONTEXT OF SOCIAL PROTEST WOULD BE LIKE USING A FRONTLOADER TO WEED A GARDEN THE USE OF RICO IN THIS CONTEXT FAILS ANOTHER CRITICAL TEST AS WELL PROLIFE ORGANIZATIONS DO NOT USE EXTORTION SOMETHING THAT MUST BE PRESENT FOR RICO TO BE APPLIED THE FEDERAL GOVERNMENT AND NOW ARE MISREADING A VIOLATION OF THE 1951 HOBBS ACT A NECESSARY INGREDIENT FOR A RICO CLAIM TO MAKE THEIR CASE THE HOBBS ACT PROHIBITS INTERFERENCE WITH COMMERCE BY EXTORTION AND DEFINES EXTORTION AS THE OBTAINING OF PROPERTY FROM ANOTHER WITH HIS CONSENT INDUCED BY WRONGFUL USE OF ACTUAL OR THREATENED FORCE VIOLENCE OR FEAR THAT SIMPLY DOES NOT APPLY TO THE ACTIONS OF THE PROLIFE GROUPS IN THE CASE BEFORE THE COURT THERE IS NO ALLEGATION OF OBTAINING NO ALLEGATION OF PROPERTY AND NO ALLEGATION OF ACTUAL OR THREATENED FORCE VIOLENCE OR FEAR IT IS CLEAR WHAT THE FEDERAL GOVERNMENT AND NOW ARE REALLY ATTEMPTING TO DO TURN THE FEDERAL RACKETEERING STATUTE INTO A WEAPON FOR USE AGAINST SOCIAL PROTEST ACTIVITIES IF RICO IS WRONGLY APPLIED OTHERS WOULD BE ENCOURAGED TO USE THE STATUTE AGAINST OTHER FORMS OF SOCIAL PROTEST THIS WOULD CHILL LEGITIMATE PROTEST AND FURTHER BURDEN THE JUDICIARY IT IS FOR THIS REASON THAT THE AMICUS BRIEF FILED ON BEHALF OF THE PROLIFE GROUPS INCLUDES ALONG WITH PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS ORGANIZATIONS SUCH AS THE GAY AND LESBIAN TASK FORCE LOS ANGELES EARTH FIRST AND THE FUND FOR ANIMALS THEY TOO REALIZE THE DANGER OF MISAPPLYING RICO IN THEIR BRIEF THE ARGUMENT IS COMPELLING AND RIGHT ON THE MARK A JUDICIAL EXPANSION OF RICO WOULD CAST A PALL ON THE SOCIAL AND POLITICAL ADVOCACY THAT HAS HISTORICALLY BEEN PERHAPS THE MOST IMPORTANT CATALYST FOR PROGRESS IN AMERICA ACTIVISTS WOULD NEVER KNOW IF RELATIVELY MINOR INFRACTIONS COMMITTED AS A PART OF A CAMPAIGN TO STIMULATE PUBLIC AWARENESS COULD RESULT IN THE HEAVY SANCTIONS OF RICO PROSECUTORS AND CIVIL PLAINTIFFS OPPOSED TO SOCIAL CHANGE WOULD HAVE AN AWESOME NEW WEAPON TO STIFLE UNPOPULAR CAUSES AND WOULD LIKELY USE THAT WEAPON THE COURT SHOULD BE WARY OF UNLEASHING SUCH A POTENT FORCE WITHOUT A CLEAR MANDATE FROM CONGRESS IMAGINE WHAT WOULD HAVE HAPPENED IF RICO HAD BEEN APPLIED TO SOCIAL PROTEST MOVEMENTS OF THE PAST RICO SHOULD NOT HAVE BEEN USED AGAINST MARTIN LUTHER KING JR OR FATHER DANIEL BERRIGAN AND IT CERTAINLY SHOULD NOT BE USED NOW AGAINST JOSEPH SCHEIDLER RANDALL TERRY OR OPERATION RESCUE AT THE TIME OF THE CIVILRIGHTS MARCHES OR THE ANTIWAR PROTESTS VERY FEW FOUND THE BEHAVIOR OF THE DISSIDENTS COMFORTABLE PALATABLE OR EVEN TOLERABLE DISSIDENTS HAVE ACCORDINGLY SUFFERED THE IMPOSITION OF FINES AND OTHER CRIMINAL SANCTIONS FOR THE COURAGE OF THEIR CONVICTIONS THE USE OF RICO WOULD HAVE HAD A DEVASTATING IMPACT ON THE SOCIAL PROTEST MOVEMENTS OF THE PAST AND NOW THREATENS THE SOCIAL PROTEST MOVEMENTS OF THE PRESENT IN A FREE SOCIETY THERE MUST BE GIVE AND TAKE IN THE MARKETPLACE OF IDEAS AS PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS SAYS IN ITS BRIEF IT IS HARD ENOUGH FOR CIVIL LIBERTARIANS TO SUSTAIN A COHERENT AND VIGOROUS DEFENSE OF THE VOICE OF PROTEST IN THIS SOCIETY WITHOUT ADDING THE DEVASTATING EFFECT OF RICO TO DIMINISH OR STILL THAT VOICE IF CONGRESS REALLY MEANS TO DO THAT TO THE STRUGGLE FOR THE SOUL OF AMERICA LET CONGRESS DO IT AND NOT THIS COURT PETA AND OPERATION RESCUE BOTH REALIZE WHAT'S AT STAKE HERE FREEDOM OF EXPRESSION WITHOUT THE HEAVY HAND OF THE FEDERAL GOVERNMENT USING THE SLEDGEHAMMER OF RICO AGAINST SOCIAL PROTESTERS MR SEKULOW IS CHIEF COUNSEL OF PAT ROBERTSON'S AMERICAN CENTER FOR LAW AND JUSTICE A PUBLIC INTEREST LAW FIRM HE IS COUNSEL FOR PROJECT LIFE OPERATION RESCUE AND ITS FOUNDER RANDALL TERRY SEE RELATED LETTER LETTERS TO THE EDITOR GAY AND LESBIAN GROUP DIDN'T BACK PROLIFERS WSJ DEC 28 1993 9312010102 YY93 MM12 9312280121 931228 SHARED TECHNOLOGIES' PURCHASE WETHERSFIELD CONN SHARED TECHNOLOGIES INC SAID IT COMPLETED THE ACQUISITION OF ROAD & SHOW CELLULAR A CELLULARPHONE RENTAL COMPANY TERMS WEREN'T DISCLOSED THE COMPANY SAID IT WILL INTEGRATE ROAD & SHOW'S OPERATIONS INTO ITS SHARED TECHNOLOGIES CELLULAR INC UNIT ROAD & SHOW HAS CORPORATE OFFICES IN LOS ANGELES HOUSTON AND NEW YORK SHARED TECHNOLOGIES SAID THE COMPANY AND ITS LICENSEES CURRENTLY OPERATE IN 35 CITIES AND WILL BE EXPANDING TO ALL 50 STATES AND CANADA WITH NEW FRANCHISE AND COMPANY OPERATIONS IN 1994 9312280120 931228 INTERNATIONAL CHINA SET TO AX LEGISLATURE IN HONG KONG BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING GOING BEYOND ITS USUAL POLITICAL POSTURING CHINA SAID IT WOULD DISBAND HONG KONG'S LEGISLATURE AND OTHER ELECTED BODIES AFTER IT TAKES OVER THE BRITISH COLONY IN 1997 IN ADDITION CHINA SAID IT WOULD EXAMINE ALL EXISTING HONG KONG LAWS TO DECIDE WHICH WILL REMAIN IN FORCE AFTER 1997 SAID ZHANG JUNSHENG DEPUTY DIRECTOR OF THE XINHUA NEWS AGENCY'S HONG KONG OFFICE CHINA'S MAIN REPRESENTATIVE OFFICE THERE THE FORMAL STATEMENT FROM XINHUA SAID THE LEGISLATIVE COUNCIL DISTRICT BOARDS AND TWO MUNICIPAL COUNCILS SHOULD BE DISBANDED ON JUNE 30 1997 AND THEN REORGANIZED DESCRIBING THEM AS COMPONENT PARTS OF THE POLITICAL STRUCTURE OF THE BRITISH HONG KONG AUTHORITIES HONG KONG NOW UNDER BRITISH RULE OCCUPIES LAND LEASED FROM CHINA IN 1997 THE LEASE EXPIRES AND THE LAND REVERTS TO CHINESE CONTROL CHINA'S ANNOUNCEMENT FOLLOWS THE BREAKDOWN OF SINOBRITISH TALKS ON HONG KONG'S FUTURE AND ON ELEMENTS OF A CONTROVERSIAL POLITICALREFORM PACKAGE PRESENTED EARLIER THIS MONTH TO THE COLONY'S LEGISLATURE BY ITS GOVERNOR CHRIS PATTEN IN SOME WAYS THE STATEMENT'S SPECIFICITY AND DIRECT LANGUAGE TAKE CHINA'S PREVIOUS THREATS A STEP FURTHER BUT TO MANY HONG KONG RESIDENTS WHO MAY BE GROWING WEARY OF A YEARLONG WAR OF WORDS BETWEEN CHINA AND BRITAIN THE TOUGH TALK MIGHT BE PERCEIVED AS JUST THAT PEOPLE ARE JUST A LITTLE NUMBED TO IT ALL NOW SAID JIN ZHONG EDITOR IN CHIEF OF OPEN MAGAZINE A CHINAWATCHING PUBLICATION BASED IN HONG KONG THEY DON'T SEE IT AS A BIG DEAL ESPECIALLY FOR SOMETHING HAPPENING SEVERAL YEARS LATER THAT ATTITUDE HAS PREVAILED IN THE PAST FEW MONTHS EVEN THOUGH TENSION HAS ESCALATED AS BRITAIN AND CHINA FAILED TO END A DEADLOCK OVER MR PATTEN'S REFORM PACKAGE THE COLONY'S STOCK MARKET HAS SURGED THE HONG KONG STOCK EXCHANGE WAS CLOSED MONDAY FOR A HOLIDAY HONG KONG'S MARKET USUALLY SHRUGS OFF RHETORIC BECAUSE ECONOMIC LINKS WITH CHINA HAVE STRENGTHENED EVEN AS POLITICAL TIES HAVE STAGNATED CHINA'S BOOMING ECONOMY ALSO HAS STIRRED HOPE THAT ITS POLITICAL SYSTEM MIGHT CHANGE BEFORE IT GETS ITS HANDS ON HONG KONG IN ADDITION CHINA AND HONG KONG COOPERATE ON SOME FRONTS FOR INSTANCE THEY RECENTLY REACHED AN AGREEMENT TO INCREASE THE NUMBER OF MAINLAND CHINESE WHO MAY EMIGRATE TO THE COLONY EACH YEAR WHAT THEY DON'T AGREE ON IS A PROPOSAL BY MR PATTEN TO BRING MORE DEMOCRACY TO HONG KONG BY OPENING LEGISLATIVE ELECTIONS TO WIDER PARTICIPATION CHINA OBJECTS TO THE REFORMS AS A PLOY TO UNDERMINE ITS EVENTUAL CONTROL OVER THE COLONY ALTHOUGH MR PATTEN PRESENTED TO THE LEGISLATURE ONLY A SPINOFF BILL THAT INCLUDES LESS CONTROVERSIAL ASPECTS OF HIS PACKAGE BEIJING HAS DECRIED HIS ACTION AS A BREAK IN FAITH BESIDES SAYING THAT BRITAIN IN EFFECT UNILATERALLY SHUT THE GATES ON TALKS IT ALSO SUGGESTED THAT SINOBRITISH ECONOMIC AND TRADE RELATIONS WOULD SUFFER BECAUSE OF MR PATTEN'S MOVE STILL THERE IS GROWING ACCEPTANCE IN THE COLONY THAT IT MIGHT BE GOING ITS OWN WAY ON SOME ISSUES AT LEAST FOR THE TIME BEING AS THE LEGISLATURE CONSIDERS MR PATTEN'S BILL BEIJING HAS SET UP A COMMITTEE TO BEGIN SETTING DETAILS OF ITS PLAN FOR RUNNING HONG KONG AFTER THE JULY 1 1997 TAKEOVER THE COMMITTEE INCLUDES PROMINENT HONG KONG BUSINESS LEADERS AND POLITICIANS BUT HAS REMAINED RELATIVELY DORMANT SINCE ITS ESTABLISHMENT THIS YEAR HOWEVER SOME ANALYSTS EXPECT IT TO BECOME MORE ACTIVE FOLLOWING THE DOWNTURN IN RELATIONS MOVING AHEAD WITHOUT CHINA'S BLESSING ISN'T NECESSARILY ALL BAD FOR HONG KONG IF THE COLONY PUSHES THROUGH MR PATTEN'S REFORMS CHINA WOULD HAVE TO DO A LOT TO ROLL BACK THE ELECTORAL PROCESS AND GOVERNMENT THAT WOULD BY THEN BE IN PLACE SAYS POLITICAL COMMENTATOR TL TSIM 9312280119 931209 REVIEW & OUTLOOK EDITORIAL BITE OF THE APPLE THE INDUSTRIAL SUBSIDY GAME PLAYED BY STATE AND LOCAL GOVERNMENTS COMPETING FOR JOBS WAS GETTING MORE EXPENSIVE ALL THE TIME BUT THIS MONTH IT GOT IMMERSED IN THE CULTURE WARS AFTER A WRENCHING WEEK A COUNTY COMMISSION OUTSIDE OF AUSTIN CHANGED ITS STAND AND OPTED TO ENTICE APPLE COMPUTER TO LOCATE A FACILITY THERE NOTWITHSTANDING A COMPANY POLICY EXTENDING BENEFITS TO HOMOSEXUALS OR OTHERS KNOWN TO BE LIVING AS IT USED TO BE CALLED IN SIN BUT NOW MORE COMMONLY AS TOGETHER THE INITIAL 3 TO 2 REFUSAL TO IMPORT THE STANDARDS OF CAMBRIDGE MASS AND THE SAN FRANCISCO PENINSULA TO THE MOSTLY CONSERVATIVE TEXAS HILL COUNTRY DREW WIDESPREAD NOTICE AND CONTROVERSY BEYOND THE PROSPECTIVE LOSS OF 700 TO 1700 CUSTOMERSERVICE JOBS AT APPLE THERE WAS THE SPECTRE OF WILLIAMSON COUNTY BEING BRANDED A HICK PLACE BY A PROGRESSIVE OUTSIDE WORLD CERTAINLY TEXAS GOVERNOR ANN RICHARDS A WORLDLY WOMAN DIDN'T WANT THAT BUT LET'S NOT LOSE SIGHT OF THE FAMILIAR GAME THAT GOT THIS TIFF ROLLING TAX SUBSIDIES FOR NEW CORPORATE RESIDENTS THE CLEANEST LINE WE CAN DRAW IN THIS TYPE OF ROW IS BETWEEN ENTERPRISE THAT IS SUBSIDIZED AND THAT WHICH ISN'T ON THAT SCORE APPLE COMPUTER'S TAX BREAK IS STILL A PROBLEM EVEN AFTER IT WAS REJIGGERED TO PROVIDE COVER FOR THE COMMISSIONER WHO SWITCHED HIS VOTE AS LONG AS CONTENTIOUS LANDUSE MATTERS ARE DECIDED AD HOC AND LOCALITIES GO BIDDING FOR BUSINESS WITH FUNDS THAT MUST BE RAISED FROM OTHER TAXPAYERS THEN THE OBJECTIONS OF OTHER CITIZENS MUST BE WEIGHED SO NOTWITHSTANDING ALL THE SECULAR FIRE AND BRIMSTONE THAT WAS RAINED DOWN ON WILLIAMSON COUNTY IT IS INDEED POSSIBLE TO SEE ITS FLEETING STAND AGAINST APPLE'S POLICIES AS ONE COMMUNITY'S RESISTANCE TO A LARGER WIDELY FELT VOID IN VALUES TO SMALL TOWNS ACROSS AMERICA THIS GENERALIZED EMPTINESS OF SPIRIT OFTEN MUST SEEM A RELENTLESS VACUUM SIPHONING THEIR TRADITIONAL STRENGTHS AND LEAVING THEM IN THE GRIP OF THE SAME NIHILISM THAT HAS THE LARGER SOCIETY DRIFTING FITFULLY AND NO DOUBT TO SOME PEOPLE OPEN AGGRESSIVE HOMOSEXUALITY OF THE SORT VIEWERS SAW THROUGH THE EYE OF CSPAN'S CAMERAS DURING APRIL'S GAY MARCH IN WASHINGTON IS REPRESENTATIVE OF THIS THREAT THIS ISSUE CAN CUT IN THE OTHER DIRECTION TOO IN TEXAS THE CULTURAL APPREHENSIONS ARE ATTACHED TO AN INDUSTRIAL DEVELOPMENT IN OTHER RECENT CASES THE ENCROACHMENT HAS BEEN COMMERCIAL WITNESS THE RESISTANCE TO WALMART STORES IN SOME CRANNIES OF THE COUNTRY THE DISCOUNTER'S WAYS HAVE BEEN SEEN FOR RATHER DIFFERENT REASONS AS LIKELY TO WRECK A WAY OF LIFE BUT SEEKING REFUGE IN PROVINCIALISM DOESN'T PROMISE A BETTER FUTURE BASED ON INNOVATION IT IS THE SORT OF STRAIN THAT RESISTS IMMIGRANTS AND OTHER NEWCOMERS THAT GAVE US EVEN IN COSMOPOLITAN NEW YORK CITY THE CURIOSITY OF COOP APARTMENTS A MECHANISM DESIGNED TO EXCLUDE SHOW PEOPLE JEWS AND OTHERS IN ITS MOST EXTREME FORM IT UNDERLIES THE ISLAMIC FUNDAMENTALISM THAT REJECTS MODERNITY AROUND THE WORLD GEORGETOWN TEXAS IS NOT TEHRAN DON'T GET US WRONG THE HALF OF THE FOLKS THERE WHO APPARENTLY DIDN'T WANT APPLE ARE ENTITLED TO THEIR WORRIES THE QUESTION IS THEIR INSTINCT TO SIMPLY ERECT WALLS BUT AMERICA IS FOR SOME TIME GOING TO BE WRESTLING WITH SOCIAL CONVENTIONS AS IT TRIES TO REGAIN A MORAL ANCHOR AND BUSINESS INEVITABLY WILL BE DRAGGED INTO THE FRAY THERE IS HOWEVER A PARADOXICAL SIDE TO THE APPLE FLAP FOR ALL THE CRITICISM LEVELED AT OUTOFIT WILLIAMSON COUNTY PEOPLE WHO FOLLOW CORPORATE RELOCATION AND SITING STORIES BY BOTH AMERICAN AND FOREIGN FIRMS ARE AWARE OF HOW MANY DECISIONS PLACE THESE FIRMS IN PLACES REMOVED FROM THE URBAN CENTERS OF COSMOPOLITANISM THEY'RE LANDING IN SOUTH DAKOTA SOUTH CAROLINA APPLETON WIS AND SIMILAR UNFANCY PLACES FINANCIAL AND COMMERCIAL CONSIDERATIONS ASIDE RELOCATORS CITE SEVERAL VALUED ATTRIBUTES SHARED BY THESE AREAS THEIR PEOPLE DON'T MISS MANY WORK DAYS AND THEY WORK HARD THEY CAN SPELL AND DO ARITHMETIC ACCURATELY FINALLY ESPECIALLY FOR SERVICE COMPANIES THE PEOPLE SEEM TO HAVE RETAINED FUNDAMENTAL SOCIAL SKILLS ALSO KNOWN AS COURTESY YOU CAN CALL THIS VALUES OR CULTURE OR WHATEVER YOU WANT BUT IT ADDS UP TO A HIGHQUALITY WORK FORCE THOSE ATTRIBUTES ARE GETTING HARDER TO COMBINE IN MORE SOPHISTICATED PLACES THE PROBLEM IS NOT THAT EMPLOYEES ARE GOING TO BE HOMOSEXUAL OR WEIRDLY ICONOCLASTIC BUT THAT THEIR LIVES ARE DISORGANIZED IN WAYS THAT MAKE THE WORKPLACE HARD TO MANAGE PUT IT THIS WAY INCREASINGLY THE WORLDLY SOPHISTICATES SEEM TO SPEND A LOT OF TIME ON THE JOB WORRYING AND TALKING ABOUT THEMSELVES THE UNHIP WORKERS OF A WILLIAMSON COUNTY SPEND MOST OF THEIR TIME WORKING IT'S SOMETHING TO PONDER AS THE CULTURE WARS INTRUDE INTO THE BOARDROOMS SEE RELATED LETTER LETTERS TO THE EDITOR WHAT DO THE SIMPLE FOLK DO IN THE MARKETPLACE WSJ DEC 28 1993 9312090091 YY93 MM12 9312280118 931202 RACISM NO GOOD BUSINESS SENSE BY STEVE SALERNO RACIAL BIAS FOUND IN BANK OF AMERICA LOANS BLARED THE HEADLINE FROM A NEWSPAPER STORY WAVED IN FRONT OF CONGRESS BY AN AGITATED HENRY CISNEROS THE HOUSING SECRETARY I SAT SPELLBOUND IN FRONT OF MY TELEVISION SET WATCHING MR CISNEROS ARGUE THAT RECENT EXPOSES ON THE MORTGAGE APPROVAL RATES AT BANK OF AMERICA AND OTHER LENDING INSTITUTIONS CONFIRMED THE PERVASIVENESS OF RACISM IN THE AMERICAN BANKING SYSTEM I HAPPENED TO HAVE READ THE SAME STORY MYSELF NOT JUST THE HEADLINE BUT THE ACCOMPANYING TEXT WHICH INCLUDED REMARKS FROM A SENIOR BANK OF AMERICA OFFICIAL EXPLAINING WHY BLACKS AND HISPANICS ARE INDEED TURNED DOWN FOR MORTGAGE LOANS ROUGHLY 40 MORE OFTEN THAN WHITES TO WIT MANY MORE MINORITY APPLICANTS THAN WHITE APPLICANTS HAVE POOR CREDIT HISTORIES UNSTABLE JOBS OR OTHER RED FLAGS IN TERMS OF CREDITWORTHINESS A LOAN DENIAL MADE ON SUCH BASES WOULD NOT SEEM TO CONSTITUTE RACIAL BIAS NEVERTHELESS IN THE END WE WERE LEFT WITH THE BLARING HEADLINE RACIAL BIAS FOUND BANKS ARE AGAIN UNDER FIRE FOR THEIR POLICIES ON BUSINESS LENDING AND ONCE AGAIN THE CULPRIT IS A STATISTICAL ANALYSIS THAT APPEARS TO FAVOR WHITE APPLICANTS A RECENT STUDY BY NEW YORK'S NEW SCHOOL FOR SOCIAL RESEARCH SHOWED THAT 32 OF WHITES IN URBAN AREAS RECEIVED SMALLBUSINESS LOANS AVERAGING 62098 APIECE THE RESPECTIVE FIGURES FOR MINORITY APPLICANTS WERE 25 AND 28234 CIVILRIGHTS WATCHDOGS DEMANDED AN INVESTIGATION THERE IS TALK OF A NEW ROUND OF POLICY GUIDELINES AND MANDATED DISCLOSURES THUS POTENTIALLY SWELLING A REGULATORY BURDEN THAT REPORTEDLY COST AMERICAN BANKERS 107 BILLION IN 1991 THE LAST YEAR FOR WHICH FIGURES ARE AVAILABLE JUST WHAT THE DOCTOR ORDERED FOR AN INDUSTRY TRYING TO DIG ITS WAY OUT OF FINANCIAL MALAISE MORE OVERHEAD THE ABOVE ITEMS EPITOMIZE A MALADY THAT IS TURNING OTHERWISE AGILE BRAINS TO POLITICALLY CORRECT MUSH IN RECENT MONTHS WE HAVE SEEN A RESURGENCE OF COMPLAINTS ABOUT REDLINING WHEREIN BANKS AND INSURANCE COMPANIES AVOID DOING BUSINESS WITH HIGHRISK CLIENTELES ALMOST ALWAYS THE ACCUSERS BASE THEIR ARGUMENTS ON STATISTICS THAT SHOW THAT MINORITIES AREN'T GETTING THEIR FAIR SHARE OF LOANS OR ARE PAYING EXCESSIVE INTEREST RATES OR PREMIUMS NO OTHER FACTORS VARIABLES OR EXPLANATIONS ARE TAKEN INTO ACCOUNT TO SEE RACISM LURKING BEHIND EVERY SET OF DIFFERING FIGURES IS FAULTY REASONING OF THE WORST SORT AKIN TO ARGUING THAT BECAUSE IT RAINS 10 TIMES AS MUCH IN NEW YORK AS IT DOES IN CALIFORNIA THE COSMOS MUST BE PREJUDICED AGAINST NEW YORK IN MATTERS OF OSTENSIBLE RACIAL IMBALANCE STATISTICS DO NOT ALWAYS TELL THE FULL STORY IF THEY DID WE'D NEED A MAJOR INVESTIGATION OF THE NATIONAL BASKETBALL ASSOCIATION WHICH IS ONLY 23 WHITE TODAY'S OVERRELIANCE ON STATISTICS IN ASSESSING THE WAY THE MINORITIES STACK UP IS NOT CONFINED TO BUSINESS MATTERS OF COURSE FOR DECADES PILLARS OF SAN DIEGO'S BLIGHTED INNERCITY PETITIONED GOVERNMENT FOR TOUGHER LAWS AGAINST THOSE WHO DISTRIBUTE ILLEGAL DRUGS A FEW YEARS BACK THE LAWS WERE ENACTED AND YET NOW THOSE SAME COMMUNITY LEADERS ARE ONCE AGAIN UP IN ARMS THEIR GRIEVANCE THAT MOST OF THE PEOPLE CONVICTED ARE NONWHITE WHO DID THEY THINK WAS GOING TO BE ARRESTED IN URBAN NEIGHBORHOODS THAT ARE MAYBE 95 BLACK AND HISPANIC TO BEGIN WITH OF COURSE IT CAN BE ARGUED WITH SOME VALIDITY THAT THERE ARE MYRIAD UNDERLYING HISTORICAL REASONS WHY BLACKS AND HISPANICS LIVE IN LOUSY NEIGHBORHOODS AND HAVE DISMAL CREDIT HISTORIES BUT JUST AS POLICE OFFICERS DO NOT NEED TO CONCERN THEMSELVES WITH SOMEONE'S PAST OR PRESENT CIRCUMSTANCES IN DECIDING WHETHER TO MAKE A NARCOTICS ARREST LOAN OFFICERS AND UNDERWRITERS AT BANK OF AMERICA AND ELSEWHERE DO NOT EXIST TO RIGHT HISTORICAL WRONGS THEIR JOB IS TO EVALUATE APPLICATIONS AND MAKE PRUDENT BANKING DECISIONS LORD KNOWS THERE HAVE BEEN ENOUGH IMPRUDENT ONES IN RECENT YEARS BANKS WE SHOULD REMEMBER ARE PUBLIC INSTITUTIONS MANY OF THEM PUBLICLY TRADED INSTITUTIONS WITH A FIDUCIARY RESPONSIBILITY TO AVOID HANDING OVER DEPOSITORS' MONEY TO DEADBEATS THEY ARE NOT CHARTERED TO ACT AS AMERICA'S SOCIAL CONSCIENCE NOR WOULD THE PUBLICLY HELD ONES EVEN BE PERMITTED TO FUNCTION AS SUCH BY THE SECURITIES AND EXCHANGE COMMISSION ANTIREDLINING STATUTES IN SHORT DEPRIVE BANKS AND INSURANCE COMPANIES OF THE RIGHT TO MAKE ACTUARIAL DECISIONS BASED ON THEIR LOSS EXPERIENCE CURIOUSLY THIS IS A PROHIBITION WE DO NOT APPLY ACROSS THE BOARD WHY FOR EXAMPLE ARE LIFE INSURANCE COMPANIES PERMITTED TO CHARGE A MAN A HIGHER PREMIUM THAN A WOMAN OR TO SPECIALRATE ENTIRE PROFESSIONS OR AVOCATIONS WHEN BANKS AND INSURERS ATTEMPT TO PREDICT CREDITWORTHINESS THEY ARE GUIDED BY THE ONLY BASIS THEY HAVE PAST EXPERIENCE WITH SIMILAR CUSTOMERS IN OUR PASSION FOR MICROMANAGING SOCIAL JUSTICE WE TEND TO FORGET THAT EQUALITY OF ACCESS AND EQUALITY OF OUTCOME ARE TWO VERY DIFFERENT THINGS CERTAINLY AS MINORITIES CONTINUE TO ASCEND THE SOCIOECONOMIC LADDER THEY WILL BE BETTER EQUIPPED TO COMPETE IN THE ECONOMY AND THE PERCEIVED STATISTICAL INEQUITIES WILL REMEDY THEMSELVES IN THE INTERIM HOWEVER WE CANNOT GET SO CAUGHT UP IN THIS OBSESSIVE QUEST TO MANDATE EQUALITY THAT WE FORCE BANKS AND INSURANCE COMPANIES AND THE REST OF THE BUSINESS WORLD TO SUSPEND TIMEHONORED STANDARDS AND CRITERIA MR SALERNO IS A FREELANCE WRITER LIVING IN SAN DIEGO SEE RELATED LETTER LETTERS TO THE EDITOR WHEN BANK LOANS ARE MORALLY CORRECT WSJ DEC 28 1993 9312020055 YY93 MM12 9312280116 931228 INTERNATIONAL JAPAN NOVEMBER RETAIL SALES SLID TOKYO SALES AT JAPAN'S MAJOR DEPARTMENT STORES AND SUPERMARKETS IN NOVEMBER WERE DOWN 69 TO 1704 TRILLION YEN 154 BILLION FROM A YEAR EARLIER THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID THE DROP STRETCHED THE LENGTH OF YEARONYEAR DECLINE IN RETAIL SALES TO 18 MONTHS THE NOVEMBER PACE OF DECLINE ACCELERATED AFTER THE THREEMONTH STREAK OF SLOWING THROUGH OCTOBER THE DECLINES WERE 35 IN OCTOBER 37 IN SEPTEMBER 42 IN AUGUST AND 51 IN JULY 9312280115 931228 UNITED FINANCIAL STOCK BUYBACK VINCENNES IND UNITED FINANCIAL BANCORP INC COMPLETED ITS STOCK REPURCHASE PROGRAM INITIATED DEC 1 IN A NEWS RELEASE THE COMPANY SAID IT REPURCHASED IN THE OPEN MARKET 5 OF ITS SHARES OUTSTANDING AT COMPLETION OF THE PROGRAM 487000 SHARES OUTSTANDING REMAINED 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 9312280114 931228 LSB COMPLETES ACQUISITION OKLAHOMA CITY LSB INDUSTRIES INC SAID IT COMPLETED ITS 29 MILLION ACQUISITION OF THE ASSETS OF INTERNATIONAL BEARINGS CORP A MEMPHIS TENN DISTRIBUTOR OF AGRICULTURAL AND POWERTRANSMISSION BEARINGS AND ROLLER CHAINS 9312280113 931228 TIDE WEST OIL BUYING ITS STOCK TULSA OKLA TIDE WEST OIL CO SAID ITS BOARD APPROVED THE PURCHASE OF AS MUCH AS 3 MILLION OF THE COMPANY'S STOCK IN OPEN MARKET PURCHASES OVER THE NEXT SIX MONTHS THE COMPANY WHICH ACQUIRES PRODUCING NATURALGAS PROPERTIES SAID IT BELIEVES THE PURCHASE IS AN EXCELLENT NATURAL GAS RESERVEBASED INVESTMENT 9312280112 931228 IN THE LAB MODEST BENEFITS OF FUZZY LOGIC BECOME CLEARER BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO TO ITS SUPPORTERS IT'S THE LATEST EXAMPLE OF A US BREAKTHROUGH GRABBED BY THE JAPANESE AND TURNED INTO AN AVALANCHE OF NEW PRODUCTS TO ITS DETRACTORS IT'S A SHAM AND AN EXCUSE FOR FUZZY THINKING BUT NEITHER VIEW HAS DONE MUCH JUSTICE TO FUZZY LOGIC WHICH IN THE US IS EMERGING FROM HYPE AND SKEPTICISM AS A USEFUL TOOL WITH IMPORTANT IF STILL MODEST APPLICATIONS IN AREAS SUCH AS INDUSTRIAL AND AUTOMOTIVE CONTROL SYSTEMS WE BECAME VERY ACTIVE IN FUZZY LOGIC ABOUT THREE YEARS AGO SAYS STEVE MARSH A STRATEGIST IN MOTOROLA INC'S MICROCONTROLLER DIVISION WHICH MAKES FUZZYBASED CHIPS THAT DIRECT THE ACTIONS OF A WIDE VARIETY OF ELECTRONIC DEVICES NOW ALL THE LARGE SEMICONDUCTOR COMPANIES HAVE MOUNTED EFFORTS IN FUZZY LOGIC MR MARSH SAYS THERE'S ALMOST A UNIVERSAL RESPONSE IN THE SEMICONDUCTOR AREA IT'S QUITE A TURNAROUND FOR A MILDLY ARCANE BRANCH OF LOGIC WITH A FUNNY NAME ESPECIALLY ONE THAT'S SPARKED SUCH POLARIZED OPINIONS IN THE SCIENTIFIC AND ENGINEERING COMMUNITIES FUZZY LOGIC'S PROMOTERS ON ONE HAND HAILED IT AS JAPAN'S LATEST ADVANCE IN COMPUTER TECHNOLOGY ONE THAT WOULD LET COMPUTERS THINK IN SHADES OF GRAY LIKE PEOPLE INSTEAD OF IN THE BINARY 1S AND 0S OF COMPUTER CODE FUZZY'S MOSTLY USBASED CRITICS BY CONTRAST INSISTED THERE WAS NOTHING FUZZY COULD DO THAT TRADITIONAL TECHNIQUES COULDN'T DO BETTER NEITHER VIEW IT TURNS OUT IS QUITE RIGHT FIRST OUTLINED IN 1965 BY A UNIVERSITY OF CALIFORNIA AT BERKELEY PROFESSOR LOTFI ZADEH FUZZY LOGIC WAS AN ATTEMPT TO SIDESTEP THE RIGIDITY OF TRADITIONAL LOGIC IN WHICH ANY STATEMENT IS EITHER TRUE OR FALSE BY CONTRAST FUZZY LOGIC ALLOWS DEGREES OF TRUTHFULNESS THAT MEASURE TO WHAT EXTENT A GIVEN NUMERICAL VALUE IS INCLUDED IN A FUZZY SET IN CONVENTIONAL LOGIC FOR INSTANCE IT'S DIFFICULT TO SAY WHETHER A 6FOOT MAN IS TALL OR NOT TALL SINCE TALL IS AN INHERENTLY FUZZY CONCEPT IF A 6FOOT MAN IS TALL WHAT ABOUT ONE WHO IS 5 FEET 11 INCHES FIVE FEET 10 INCHES A FUZZY LOGICIAN HOWEVER MIGHT SAY IT IS 15 TRUE THE 6FOOT MAN BELONGS TO THE VERY TALL FUZZY SET 60 TRUE THE MAN BELONGS TO THE TALL SET AND 30 TRUE HE BELONGS TO THE MEDIUM HEIGHT SET SINCE THESE TRUTH VALUES REFER TO DIFFERENT SETS THEY DON'T HAVE TO ADD UP TO 100 USING THESE TRUTH VALUES IT BECOMES POSSIBLE TO DESCRIBE NUMERICAL QUANTITIES SUCH AS A MEASURED HEIGHT IN A QUALITATIVE WAY USING ORDINARY ENGLISH WORDS IF WE LOOK AT NUMERICAL INFORMATION THROUGH FUZZY SETS WE CAN GET LINGUISTIC INFORMATION SAYS MICHIO SUGENO A TOKYO INSTITUTE OF TECHNOLOGY PROFESSOR WHO HELPED PIONEER FUZZYLOGIC RESEARCH IN JAPAN REVERSING THE PROCESS IT'S ALSO POSSIBLE TO PROCESS ORDINARY ENGLISH IN A COMPUTER IN ORDER TO RETURN TO NUMERICAL VALUES DR SUGENO SAYS THAT MEANS FUZZY LOGIC CAN BE APPLIED TO A CONTROL SYSTEM THE PROGRAM THAT CONTROLS A SUBWAY TRAIN OR A FACTORY PROCESS FOR EXAMPLE BY CALCULATING ITS REACTION TO CURRENT CONDITIONS ORDINARILY FOR INSTANCE A SUBWAY CONTROL SYSTEM WILL BEGIN TO APPLY THE TRAIN'S BRAKES IF ITS SPEED IS HIGH AND THE NEXT STATION IS NEAR THOSE ACTIONS WHICH IN TRADITIONAL SYSTEMS ARE REPRESENTED USING COMPLICATED MATHEMATICAL TECHNIQUES CAN BE DESCRIBED USING A HANDFUL OF FUZZY RULES SUCH AS IF SPEED IS HIGH AND THE NEXT STATION IS NEAR APPLY BRAKES AT MEDIUM PRESSURE A CONTROLLER BUILT FROM SUCH RULES IS OFTEN EASIER TO MAINTAIN AND SOMETIMES CHEAPER THAN A CONVENTIONAL CONTROLLER FUZZYLOGIC PROPONENTS CLAIM DERIVING THOSE RULES HOWEVER MEANS TAPPING THE KNOWLEDGE OF THE PEOPLE WHO ARE USED TO RUNNING THOSE PROCESSES IN ESSENCE TURNING THE CONTROL SYSTEM INTO AN EXPERT SYSTEM THAT REFLECTS THE ACTUAL EXPERIENCE OF REAL SUBWAY ENGINEERS THAT'S JUST WHAT DR SUGENO WHO WORKS ON THE 11TH FLOOR OF A WATERSTAINED CONCRETE BUILDING ON THE INSTITUTE'S YOKOHAMA CAMPUS HAS DONE HIS RESEARCH TEAM DESIGNED AND BUILT A CONTROLLER FOR A MODEL HELICOPTER THAT SUMS UP THE COMPLEX MATHEMATICAL EQUATIONS THAT GOVERN A HELICOPTER'S MOTION TO A SET OF 384 FUZZY RULES THOSE RULES HOWEVER COME NOT ONLY FROM THE TEAM'S UNDERSTANDING OF THOSE EQUATIONS BUT FROM INTERVIEWS WITH ACTUAL PILOTS THE TURN COMMAND WAS VERY DIFFICULT DR SUGENO SAYS WE HAD TO RELY ON EXPERT KNOWLEDGE FROM PILOTS TO GET IT RIGHT SUCH CONTROL SYSTEMS HAVE STARTED TO CROP UP ACROSS THE WORLD MOST FAMOUSLY IN THE JAPANESE CITY OF SENDAI'S SUBWAY SYSTEM AS FAR AS DR SUGENO IS CONCERNED HOWEVER THE EXPERT KNOWLEDGE EMBEDDED IN FUZZYCONTROL SYSTEMS CAN BE PUT TO MUCH WIDER USES SINCE FUZZY SYSTEMS CAN ALLOW COMPUTERS TO CALCULATE USING FUZZY CONCEPTS FROM NATURAL LANGUAGE HE SAYS THEY CAN ALSO MODEL AND PREDICT SOCIAL TRENDS SUCH AS CURRENCYEXCHANGE RATES HE INSISTS NEXT DOOR TO DR SUGENO GRADUATE STUDENT ICHIRO KOBAYASHI PLUGS AWAY AT THAT TASK HIS COMPUTER WORKSTATION'S SCREEN IS LINED WITH SMALLER RECTANGULAR WINDOWS EACH FILLED WITH A HANDFUL OF ECONOMIC INDICATORS MR KOBAYASHI'S GOAL TO PREDICT THE YENDOLLAR EXCHANGE RATE BY MODELING NOT JUST ECONOMIC INDICATORS BUT ALSO PUBLIC STATEMENTS BY GOVERNMENT OFFICIALS IN A POSITION TO AFFECT CURRENCY MARKETS HIS PROGRAM GRINDS AWAY AS IT TRIES TO INTERPRET THE REMARK FROM A US TREASURY UNDERSECRETARY BEFORE CONGRESS WE PAY ATTENTION TO AN EXTREMELY LOW YEN RATE A SEPARATE NONFUZZY LINGUISTIC ANALYSIS PACKAGE DECIDES THE OFFICIAL IS EXPRESSING HARD FEAR THAT SHOULD HAVE THE EFFECT OF DRIVING THE YEN'S VALUE UP AND FEEDS THAT INFORMATION INTO THE FUZZY PROCESSING UNIT WHICH COMBINES IT WITH EXPERT KNOWLEDGE DERIVED FROM THE CURRENT ECONOMIC INDICATORS WHETHER OR NOT SUCH THEORETICAL WORK EVER REACHES A PRACTICAL STAGE FUZZY LOGIC IS STARTING TO OVERCOME THE INITIAL SKEPTICISM WITH WHICH MANY US ENGINEERS MET IT I'VE MET A LOT OF PEOPLE WHO HAVE THEIR HEADS SCREWED ON RIGHT AND ARE DOING USEFUL THINGS WITH FUZZY LOGIC SAYS ROBERT PEASE A STAFF SCIENTIST WITH NATIONAL SEMICONDUCTOR CORP WHO HAS PUBLICLY CHALLENGED FUZZY PROPONENTS TO PROVE THE SUPERIORITY OF THEIR SYSTEMS TO CONVENTIONAL TECHNIQUES BUT THE FIELD IS SO CLUTTERED UP WITH HYPE IT'S DISGUSTING 9312280111 931228 EATON CORP CALLS DEBENTURES CLEVELAND EATON CORP SAID IT CALLED FOR REDEMPTION OF ALL ITS OUTSTANDING 8 1/2 DEBENTURES DUE JAN 15 2017 IN THE AMOUNT OF 893 MILLION THE REDEMPTION DATE IS JAN 24 1994 AT 104646 OF THE PRINCIPAL AMOUNT FOR A TOTAL OF 94449000 PLUS ACCRUED AND UNPAID INTEREST TO THE REDEMPTION DATE THE COMPANY SAID EATON WHICH WILL TAKE A FOURTHQUARTER CHARGE OF FIVE CENTS A SHARE FOR THE REDEMPTION REPORTED 1992 FOURTHQUARTER NET INCOME OF 39 MILLION OR 114 A SHARE EATON MAKES VEHICLE POWER TRAIN COMPONENTS AND A VARIETY OF CONTROLS SERVING THE TRANSPORTATION INDUSTRIAL COMMERCIAL AND MILITARY MARKETS 9312280110 931228 INTERNATIONAL FAG KUGELFISCHER SELLS UNIT SCHWEINFURT GERMANY BALLBEARING MANUFACTURER FAG KUGELFISCHER KGAA ANNOUNCED THE SALE OF ITS TEXTILE MACHINERY EQUIPMENT UNIT AND SAID ITS DIVESTITURE PROGRAM IS NEARLY FINISHED THE EQUIPMENT DIVISION WITH ANNUAL SALES OF AROUND 70 MILLION MARKS 413 MILLION AND 300 EMPLOYEES HAS BEEN SOLD TO HOLDING COMPANY EUROPA CAPITAL PARTNER SA ECA OF LUXEMBOURG 9312280109 931228 WESTERN CO TO BUY NOTES HOUSTON WESTERN CO OF NORTH AMERICA SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO PURCHASE ON THE OPEN MARKET 100 MILLION OF 12 7/8 SENIOR NOTES DUE 2002 THE PURCHASE MUST BE APPROVED BY 51 OF THE NOTEHOLDERS A SPOKESMAN FOR THE OILFIELD SERVICE COMPANY SAID HE ALSO SAID THE HIGHYIELD NOTES WERE BEING REDEEMED TO LOWER THE COSTS OF THE COMPANY'S FINANCIAL STRUCTURE 9312280108 931228 JAMESWAY TO CLOSE 14 STORES SECAUCUS NJ DISCOUNT RETAILER JAMESWAY CORP PLANS TO CLOSE 14 OF ITS 108 STORES JAMESWAY HAS BEEN OPERATING UNDER THE PROTECTION OF CHAPTER 11 OF THE US BANKRUPTCY CODE SINCE JULY THE STORE CLOSINGS WILL BE COMPLETED DURING THE FIRST QUARTER OF 1994 JAMESWAY SAID IT PLANS TO REMODEL 11 OF ITS STORES AS PART OF ITS STRATEGY TO CONCENTRATE ON ITS MOST PROFITABLE LOCATIONS 9312280107 931228 INTERNATIONAL WESTERN GERMANY'S OUTLOOK NUREMBERG GERMANY WESTERN GERMAN CONSUMER CONFIDENCE SANK IN NOVEMBER SLIDING 06 POINT FROM THE PREVIOUS MONTH FOLLOWING A 09 FALL IN OCTOBER THE GFK INSTITUTE REPORTED IN NOVEMBER THE INDEX STOOD AT 749 POINTS A HISTORIC LOW FOR THE GAUGE WHICH USES 1980 AS ITS 100POINT BASE LINE THE INSTITUTE SAID IN THE FIRST 11 MONTHS OF 1993 THE INDEX FELL 58 POINTS THE TREND PARTICULARLY REFLECTS THE MISTRUST WESTERN GERMANS HOLD FOR THE POSSIBILITY OF AN IMMINENT ECONOMIC RECOVERY THE REPORT SAID THE TREND SHOWS NO HOPE THAT AN INCREASE IN PRIVATE DEMAND CAN BE EXPECTED SOON IT ADDED 9312280106 931228 CRESTAR FINANCIAL ACQUISITION RICHMOND VA CRESTAR FINANCIAL CORP SAID ITS MORTGAGE BANKING UNIT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE MORTGAGE CAPITAL CORP A CLOSELY HELD MORTGAGE COMPANY IN ST PAUL MINN CRESTAR SAID IT WILL PAY 52 MILLION PLUS AS MUCH AS AN ADDITIONAL 24 MILLION OVER THE NEXT FIVE YEARS DEPENDING ON THE PERFORMANCE OF THE ACQUIRED COMPANY MORTGAGE CAPITAL LAST YEAR ORIGINATED ABOUT 500 MILLION IN RESIDENTIAL MORTGAGES CRESTAR FINANCIAL WITH ASSETS OF 132 BILLION IS A BANK HOLDING COMPANY AFFILIATES PROVIDE INSURANCE AND BROKERAGE AND INVESTMENT ADVISORY SERVICES 9312280105 931228 INTERNATIONAL INDIAN MINISTER'S RESIGNATION RAISES CONCERN FOR REFORM BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI INDIAN FINANCE MINISTER MANMOHAN SINGH'S DECISION TO RESIGN HAS PROMPTED FEARS THAT THE ECONOMICREFORM PROGRAM HE HAS STEERED SINCE JULY 1991 WILL FOUNDER IF HE LEAVES MR SINGH'S EXIT WOULD BE A CATASTROPHE A WESTERN AMBASSADOR HERE SAID THE CREDIBILITY OF THE REFORM IS MANMOHAN SINGH MR SINGH HANDED IN HIS RESIGNATION ON THURSDAY IN RESPONSE TO CRITICAL REFERENCES TO HIM IN A REPORT ISSUED EARLIER LAST WEEK BY A PARLIAMENTARY COMMITTEE LOOKING INTO LAST YEAR'S 14 BILLION SECURITIES SCANDAL WHICH WREAKED HAVOC ON THE COUNTRY'S FINANCIAL MARKETS PRIME MINISTER PV NARASIMHA RAO HAS YET TO ACT ON THE RESIGNATION BUT A PERSON CLOSE TO THE PRIME MINISTER SAID HE IS UNLIKELY TO ACCEPT IT NO FORMAL DECISION IS EXPECTED BEFORE A TWODAY PARLIAMENTARY DEBATE ON THE COMMITTEE'S REPORT TOMORROW AND THURSDAY SEVERAL BUSINESS EXECUTIVES AND ASSOCIATIONS HAVE ISSUED STATEMENTS EXPRESSING DISMAY ABOUT MR SINGH'S DECISION SAYING HIS DEPARTURE WOULD BE A SETBACK TO THE AMBITIOUS REFORM PROGRAM WHICH IN THE PAST TWO YEARS OR SO HAS STRIVED TO OPEN UP THE ECONOMY TO FOREIGN INVESTMENT AND CUT TARIFFS AMONG OTHER THINGS PEOPLE CLOSE TO MR SINGH SAID HE DOESN'T WISH TO CONTINUE AS FINANCE MINISTER IF HE CAN'T COUNT ON THE PRIME MINISTER'S SUPPORT IN THE FACE OF THE PARLIAMENTARY COMMITTEE'S CRITICISMS HE'S A MAN OF INTEGRITY WHO DOESN'T LIKE TO HAVE MUD THROWN AT HIM ONE PERSON SAID IN ITS REPORT THE COMMITTEE SUGGESTS MR SINGH EXHIBITED NEGLIGENCE IN REMARKS HE MADE IN APRIL 1992 SHORTLY AFTER THE SECURITIES SCANDAL SURFACED SPEAKING IN PARLIAMENT MR SINGH HAD SAID HE DIDN'T SEE WHY HE SHOULD LOSE SLEEP SIMPLY BECAUSE THE STOCK MARKET GOES UP ONE DAY AND FALLS THE NEXT DAY ON THIS THE COMMITTEE SAYS ONE WOULD WISH THAT WHEN SUCH CATACLYSMIC CHANGES TAKE PLACE ALL AROUND SOME ALARM WOULD RING TO DISTURB HIS SLUMBER MEMBERS OF THE RULING CONGRESS PARTY WHO ARE ON THE COMMITTEE ARGUE THAT THE REPORT CONTAINS NOTHING THAT WARRANTS HIS RESIGNATION WE CANNOT AND MUST NOT LET HIM GO WROTE MANI SHANKAR AIYAR A CONGRESS PARTY LAWMAKER ON THE COMMITTEE IN A FRONTPAGE ANALYSIS SUNDAY IN THE ECONOMIC TIMES NEWSPAPER 9312280104 931228 POLITICS & POLICY WHITE HOUSE RESEARCH OFFICE WAGES POLICY COMBAT' WITH QUICK RESPONSE BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DURING ONE OF THIS YEAR'S BUDGET SKIRMISHES PRESIDENTIAL COUNSELOR DAVID GERGEN CALLED ANN WALKER THE HEAD OF THE WHITE HOUSE RESEARCH OFFICE WITH AN URGENT IF OBSCURE REQUEST DID PREVIOUS REPUBLICAN ADMINISTRATIONS EVER COUNT REDUCED INTEREST COSTS AS SPENDING CUTS MR GERGEN'S INTEREST WASN'T ACADEMIC SENATE GOP LEADER ROBERT DOLE WAS AT THE MOMENT PILLORYING THE CLINTON ADMINISTRATION FOR USING THE PLOY TO COOK THE NUMBERS OF ITS BUDGET WITHIN HOURS THE WORD CAME BACK SEN DOLE HIMSELF SUPPORTED THE 1990 BUDGET DEAL THAT USED INTEREST SAVINGS TO HELP MEET ITS PROMISE OF REDUCING THE DEFICIT BY NEARLY 500 BILLION THE NEXT MORNING A WASHINGTON POST EDITORIAL CHASTISED THE SENATOR UNDER THE HEADLINE MR DOLE KNOWS BETTER A COPY OF THE EDITORIAL HUNG FOR WEEKS ON THE WALL OF THE RESEARCH OFFICE A CONSTANT REMINDER OF THE FACT THAT IN WASHINGTON PERHAPS MORE THAN ANYWHERE ELSE KNOWLEDGE IS INDEED POWER IT IS A LESSON THE CLINTON WHITE HOUSE HAS TAKEN TO HEART AS IT HAS TRANSFORMED THE RESEARCH OFFICE FROM A SLEEPY OUTPOST INTO A TOOL OF POLICY COMBAT THE TERM CLINTON AIDES USE TO DESCRIBE THEIR APPROACH TO GOVERNING THEIR VIEW OF RESEARCH IS AN EXTENSION OF THE STRATEGY THEY PERFECTED IN THE PRESIDENTIAL CAMPAIGN QUICKLY RESPOND TO ACCUSATIONS AND TAKE THE OFFENSIVE WITH FRESH DATA THERE ARE TWO KINDS OF PEOPLE IN POLITICS THE QUICK AND THE DEAD SAYS PRESIDENTIAL POLITICAL ADVISER PAUL BEGALA WE HAD BETTER BE THE QUICK AT A TIME WHEN OUTLETS LIKE CABLE NEWS NETWORK AND ALLNEWS RADIO STATIONS HAVE CREATED AN INSATIABLE APPETITE FOR INFORMATION HE SAYS YOU HAVE TO FEED THE BEAST OR IT WILL EAT YOU NOT ALL THE RESEARCH IS FOR PUBLIC CONSUMPTION THOUGH DURING THE DEBATE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT THE PRESIDENT HEAVILY UTILIZED INFORMATION IN HIS ARMTWISTING WITH LAWMAKERS OFTEN CITING STATISTICS ON HOW MANY JOBS WOULD BE CREATED IN INDIVIDUAL INDUSTRIES RESEARCHERS ALSO KEPT A USEFUL BOOK ON LAWMAKERS' PUBLIC STATEMENTS ON NAFTA NOW HEALTH CARE IS SHAPING UP AS THE NEXT GREAT BATTLEGROUND IN THE RESEARCH WARS THE WHITE HOUSE ALREADY HAS PURCHASED COMPUTER ACCESS TO NEWS AND PUBLICRELATIONS WIRE SERVICES TO TRACK BREAKING DEVELOPMENTS AND HAS DETAILED ONE RESEARCHER MEEGHAN PRUNTY TO WORK ON NOTHING ELSE MEANWHILE ERIC BERMAN WHO RECENTLY LEFT THE WHITE HOUSE RESEARCH OFFICE TO RUN A SIMILAR OPERATION AT THE DEMOCRATIC NATIONAL COMMITTEE KEEPS TABS ON OPPONENTS OF THE HEATHCARE PLAN PRESIDENT CLINTON'S RELIANCE ON RESEARCH ACCENTS DIFFERENCES BETWEEN THIS PRESIDENT AND HIS PREDECESSOR UNDER PRESIDENT BUSH A SEVENPERSON RESEARCH OFFICE HAD A SINGLE TASK TO METICULOUSLY FACTCHECK HIS SPEECHES THERE WAS A POINT OF PRIDE THAT ONLY TWO OR THREE MINOR MISTAKES EVER CREPT INTO BUSH SPEECHES SAYS TONY SNOW WHO DIRECTED SPEECHWRITING FOR MR BUSH REVIEWING MR CLINTON'S SPEECHES IS MOSTLY A WASTE OF TIME BECAUSE HE RARELY READS THE TEXT NOW THE REPUBLICANS MARVEL AT WHAT THEIR SUCCESSORS HAVE WROUGHT MARLIN FITZWATER WHO WAS PRESS SECRETARY FOR BOTH MR BUSH AND PRESIDENT REAGAN SAYS THAT IF HE NEEDED INFORMATION HE HAD TO SCOUT AROUND TO FIND IT IF YOU DIDN'T HAVE YOUR OWN RESEARCH OFFICE YOU DIDN'T HAVE ANYTHING BECAUSE OTHER ADMINISTRATION OFFICES WOULDN'T HELP HE SAYS ADDING THAT IT ALWAYS SEEMED A WEAKNESS THE NEW APPROACH IS LARGELY THE HANDIWORK OF MS WALKER 33 YEARS OLD WHO FORMERLY WORKED IN PUBLIC RELATIONS IN NEW YORK AND IS A VETERAN OF THE CLINTON CAMPAIGN PRESS OFFICE WHEN SHE MOVED INTO HER NEW OFFICE AFTER THE CLINTON INAUGURATION LAST JANUARY SHE SAYS SHE FOUND THAT THE DEPARTED BUSH AIDES HAD LEFT NOTHING BEHIND NO REFERENCE BOOKS CONGRESSIONAL GUIDES OR EVEN PAST BUDGETS THE CLINTON TEAM HASTILY PURCHASED NEW BOOKS AND BOUGHT EQUIPMENT AND SOFTWARE SO THAT NEWSPAPER AND MAGAZINE ARTICLES COULD BE RETRIEVED BY COMPUTERS NOW MS WALKER HAS A STAFF OF SIX FULLTIME EMPLOYEES AND SEVEN GRADUATESTUDENT INTERNS WHO OFTEN WORK JOINTLY ON PROJECTS WITH OTHER WHITE HOUSE OFFICES SUCH AS THE NATIONAL ECONOMIC COUNCIL SHE ALSO HAS THE ABILITY TO MOBILIZE EVEN LARGER RESOURCES AS NEEDED FOR EXAMPLE THE NIGHT THAT ROSS PEROT DEBATED VICE PRESIDENT AL GORE OVER NAFTA MS WALKER HAD DIRECT TELEPHONE TIES TO REPRESENTATIVES OF EACH MAJOR GOVERNMENT AGENCY SO THEY COULD FEED DATA REBUTTING MR PEROT JUST LIKE A CAMPAIGN STAFF AFTER A PRESIDENTIALELECTION DEBATE THE RESEARCH OFFICE QUICKLY PREPARED A RHETORIC VS REALITY DOCUMENT THAT SOUGHT TO KNOCK DOWN MR PEROT'S ARGUMENTS POINT BY POINT BUT MS WALKER SAYS THE WHITE HOUSE NEVER RELEASED THE DOCUMENT FIGURING THAT MR PEROT HADN'T MADE ENOUGH POINTS THAT DEMANDED RESPONSES SOMETIMES A REQUEST SENDS THE RESEARCHERS SCURRYING FOR THE HISTORY BOOKS AT THE REQUEST OF WHITE HOUSE NAFTA STRATEGIST RAHM EMANUEL MS WALKER AND OTHERS COMPILED A LIST OF EXAMPLES OF DEALS CUT BY PAST PRESIDENTS TO WIN MAJOR CONGRESSIONAL VICTORIES THE REPORT WHICH DETAILED THE DEALS THAT PRESIDENT KENNEDY MADE TO GET A TRADE ACCORD APPROVED PASSAGES FROM A BOOK ON THE MARSHALL PLAN DOCUMENTING THE CAJOLING THAT PRESIDENT TRUMAN USED AND PRESIDENT JOHNSON'S MANEUVERING FOR CIVIL RIGHTS LAWS WAS USED BY WHITE HOUSE AIDES TO DEFEND MR CLINTON AGAINST CHARGES HE WAS BUYING LAWMAKERS' SUPPORT ON NAFTA 9312280103 931228 POLITICS & POLICY CLINTON AIDES DEBATE WHETHER WELFARE REFORM WILL INTERFERE WITH LEGISLATION ON HEALTH CARE BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON PASSIONATELY CALLS FOR AN OVERHAUL OF THE HEALTHCARE SYSTEM HE ALSO PASSIONATELY CALLS FOR AN OVERHAUL OF THE WELFARE SYSTEM BUT THOSE TWO DESIRES ARE IN DANGER OF COLLIDING AND MR CLINTON'S ABILITY TO HEAD OFF A CRASH WILL GO A LONG WAY IN DETERMINING THE NATURE OF HIS SECOND YEAR IN OFFICE THE PROBLEM FOR THE WHITE HOUSE IS UNCERTAINTY OVER WHETHER THE POLITICAL AND LEGISLATIVE CIRCUITS IN BOTH THE WHITE HOUSE AND CONGRESS CAN HANDLE TWO TASKS AS MONUMENTAL AS HEALTHCARE REFORM AND WELFARE REFORM IN 1994 AN ELECTION YEAR THERE IS ALREADY AN INTERNAL ADMINISTRATION DEBATE ABOUT WHETHER PUSHING AHEAD QUICKLY WITH A WELFAREREFORM PLAN WILL INTERFERE WITH HEALTHCARE LEGISLATION BOTH WOULD ESSENTIALLY MOVE THROUGH THE SAME CONGRESSIONAL COMMITTEES AND AS NEXT YEAR UNFOLDS MR CLINTON IS GOING TO BE FURTHER BUFFETED BY CONFLICTING POLITICAL PRESSURES THE TWO ISSUES TEND TO SPLINTER HIS FELLOW DEMOCRATS THE PARTY'S LIBERAL WING CONSIDERS HEALTHCARE REFORM THE PARAMOUNT PRIORITY WHILE MORE CONSERVATIVE DEMOCRATS THINK MAKING GOOD ON THE CLINTON CAMPAIGN PLEDGE TO END WELFARE AS WE KNOW IT IS AN EQUALLY VITAL POLITICAL MISSION AND AMONG REPUBLICANS THERE'S A GROWING MOVEMENT TO PUT THE BRAKE ON HEALTHCARE REFORM AND HIT THE ACCELERATOR ON WELFARE REFORM THE SITUATION ECHOES THE DEBATE EARLIER THIS YEAR OVER HOW AND WHETHER TO PUSH BOTH HEALTHCARE AND THE NORTH AMERICAN FREE TRADE AGREEMENT ULTIMATELY THE PRESIDENT WAS ABLE TO GET NAFTA PASSED BUT AT THE PRICE OF BLUNTING SOME OF THE HEALTHCARE EFFORT NOW THE WHITE HOUSE INSISTS IT WILL BE ABLE TO PUSH BOTH HEALTH AND WELFARE OVERHAULS SIMULTANEOUSLY NEXT YEAR I THINK WE PROVED IN THE PAST YEAR THAT WE'RE CAPABLE OF DOING MORE THAN ONE THING AT ONCE SAYS BRUCE REED A WHITE HOUSE DOMESTIC POLICY AIDE WHO IS HELPING CRAFT THE CLINTON WELFAREREFORM PACKAGE BUT EVEN MR REED ACKNOWLEDGES THAT WE CAN'T DO ANYTHING TO OVERSHADOW HEALTH CARE AND THERE IS NO DOUBT THAT HEALTH IS THE TOP WHITE HOUSE PRIORITY HILLARY RODHAM CLINTON THE DRIVING FORCE BEHIND THE ADMINISTRATION'S HEALTHCARE REFORM PACKAGE MADE THAT PERFECTLY CLEAR AT A PUBLIC FORUM IN BOSTON RECENTLY SHE LISTENED TO THE STORY OF A WOMAN WHO RUNS A CHILDCARE CENTER BUT ONCE WAS ADVISED TO QUIT WORKING AND GO ON WELFARE IN ORDER TO GET MEDICAL COVERAGE THROUGH MEDICAID THE HEALTH PROGRAM FOR THE POOR MRS CLINTON DECLARED IN RESPONSE ANYONE WHO BELIEVES IN WELFARE REFORM BETTER BELIEVE IN HEALTHCARE REFORM FIRST BECAUSE WE'RE NOT GOING TO MOVE PEOPLE OFF OF WELFARE INTO WORK WHEN THEY HAVE HEALTH BENEFITS ON WELFARE BUT NOT ON WORK THAT INTIMATE RELATIONSHIP BETWEEN HEALTH AND WELFARE LEADS SOME TO ARGUE THAT THERE'S AN OPENING TO MARRY THE TWO INITIATIVES AND MOVE THEM AHEAD IN TANDEM I THINK IT'S AN OPPORTUNITY FOR A JOINT LEGISLATIVE VENTURE BECAUSE OF THE COMMONALITY OF THE TWO ARGUES SEN JOHN BREAUX OF LOUISIANA A MEMBER OF THE SENATE FINANCE COMMITTEE WHO JUST COMPLETED A TERM AS CHAIRMAN OF THE CENTRIST DEMOCRATIC LEADERSHIP COUNCIL A CHAMPION OF WELFARE REFORM BUT A FAR LIKELIER SCENARIO IS THAT THE TIMETABLE FOR WELFARE REFORM COULD SLIP BUDGET DIRECTOR LEON PANETTA SAYS FINANCING ARRANGEMENTS FOR WELFARE REFORM WON'T BE SPELLED OUT IN THE BUDGET MR CLINTON PLANS TO PRESENT IN JANUARY AND CLINTON AIDES SAY THE FULL WELFAREREFORM PROPOSAL MAY NOT BE READY UNTIL THE SPRING THE PROPOSAL IS EXPECTED TO CALL FOR MORE EXTENSIVE JOB TRAINING FOR WELFARE RECIPIENTS AND INCLUDE A REQUIREMENT THAT THEY MOVE INTO JOBS AFTER TWO YEARS ON THE ROLLS WHITE HOUSE AIDES ESTIMATE THE PROGRAM MAY REQUIRE SOMETHING IN THE NEIGHBORHOOD OF 1 BILLION IN FINANCING IN ITS FIRST YEAR AND PERHAPS 10 BILLION OR MORE OVER FIVE YEARS TO PUT INTO EFFECT THE MONEY IS ALL TO COME FROM SHIFTING FUNDS OUT OF EXISTING PROGRAMS IF WELFARE REFORM EFFORTS ARE PUSHED BACK TOO FAR THAT COULD CREATE PROBLEMS ON THE IMPORTANT SENATE FINANCE COMMITTEE THE PANEL'S CHAIRMAN DEMOCRATIC SEN PATRICK MOYNIHAN OF NEW YORK IS A LONGTIME STUDENT OF THE WELFARE SYSTEM AND A CHAMPION OF THE IDEA OF OVERHAULING IT HE APPEARS EAGER TO MOVE AHEAD IN DRAWING UP A NEW BLUEPRINT BY COMPARISON SEN MOYNIHAN HAS RELATIVELY LESS PERSONAL INVESTMENT IN THE ISSUE OF HEALTH CARE AND SOME COLLEAGUES THINK HE HAS DECIDEDLY LESS INTEREST IN IT WHAT'S MORE LETTING WELFARE REFORM SLIDE WOULD WORRY MODERATE AND CONSERVATIVE DEMOCRATS WHO CONSIDER IT AN IMPORTANT ISSUE TO MIDDLECLASS VOTERS AND ONE THAT NEEDS TO BE ADDRESSED BEFORE CONGRESSIONAL ELECTIONS NEXT YEAR THEY ALSO SEE WELFARE REFORM AS A KEY TO THEIR SEARCH FOR A NEW DEMOCRAT AGENDA THAT STRESSES THE NEED FOR AMERICANS TO ACCEPT MORE PERSONAL RESPONSIBILITY RATHER THAN DEPEND ON GOVERNMENT PROGRAMS I THINK WELFARE REFORM IS ONE OF THE MOST DEFINING ISSUES FOR CLINTON AND NEW DEMOCRATS SAYS AL FROM PRESIDENT OF THE DLC THE REALITY IS THAT A LOT OF PEOPLE IN CONGRESS ARE GOING TO WANT TO SEE IT COME UP NEXT YEAR JUST FOR THAT REASON FOR SIMILAR REASONS SOME REPUBLICANS ARE BEGINNING TO ARGUE THAT THEIR PARTY SHOULD TRY TO STEER THE FOCUS AWAY FROM HEALTH CARE WHERE THEY THINK THE GOP COULD BE PULLED INTO A DEBATE HELD ON MR CLINTON'S TERMS AND ONTO WELFARE REFORM WHICH THEY SEE AS A BETTER ISSUE FOR THEM OUR STANCE ON WELFARE SHOULD BE DIFFERENT FROM OUR STANCE ON HEALTH CARE SAYS WILLIAM KRISTOL A FORMER TOP AIDE TO DAN QUAYLE WHO HEADS A NEW REPUBLICAN POLICY INSTITUTE OUR HEALTHCARE SYSTEM IS NOT FUNDAMENTALLY BROKEN IT ISN'T DESTROYING PEOPLE'S LIVES NOBODY IS WILLING TO MAKE AN ANALOGOUS STATEMENT ABOUT OUR WELFARE SYSTEM IT IS A DISASTER FOR THOSE WHO ARE SUPPOSED TO BE THE BENEFICIARIES OF IT IN THE END SOME WHITE HOUSE ALLIES ARGUE THAT THE TWO ISSUES CAN BE ADEQUATELY ADDRESSED IF THE ADMINISTRATION PUSHES THROUGH HEALTH CARE AND AT LEAST BEGINS THE PROCESS OF CHANGING THE WELFARE SYSTEM NEXT YEAR I BELIEVE IT IS GOING TO TAKE A WHILE TO GET A GOOD WELFAREREFORM BILL IN SHAPE SAYS MR FROM IT'S GOING TO TAKE A LONG TIME IT'S NOT GOING TO BE EASY I'M NOT GOING TO LIVE OR DIE WITH WHETHER IT GETS DONE NEXT YEAR I THINK IT'S IMPORTANT THAT IT GET STARTED 9312280101 931228 PRUDENTIAL TRIES TO SHACKLE EXBROKERS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC IS TAKING LEGAL STEPS TO SHACKLE ITS FORMER BROKERS WHO ARE GETTING INVOLVED IN LIMITEDPARTNERSHIP DISPUTES WITH THE BIG BROKERAGE FIRM A MICHIGAN STATECOURT JUDGE GRANTED PRUDENTIAL'S REQUEST FOR A PRELIMINARY INJUNCTION THIS MONTH THAT TEMPORARILY PREVENTS TWO OF ITS FORMER BROKERS FROM REPRESENTING INVESTORS IN ARBITRATION CASES AGAINST THE FIRM THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT ARGUED THAT THE BROKERS AND THEIR FLINT MICH FIRM PARTNERSHIP ARBITRATION WERE ILLEGALLY PRACTICING LAW BUT THE BROKERS WHO AREN'T LICENSED LAWYERS COMPLAIN THAT PRUDENTIAL IS GOING AFTER THEM BECAUSE THEY ARE FORMER EMPLOYEES WHO HAVE TURNED AGAINST THE FIRM IT'S REVENGE ON PRU'S PART BECAUSE WE'RE WHISTLEBLOWERS SAYS J STEPHEN STOUT IN AN INTERVIEW THIS IS NOT ATYPICAL OF PRU'S TACTICS WITH ANYBODY WHO TRIES TO GET MONEY FROM THEM FOR WHAT THEY DID IN THE '80S CONTENDS MR STOUT WHO LEFT PRU IN 1989 THE CASE AGAINST PARTNERSHIP ARBITRATION COMES AS PRUDENTIAL SECURITIES IS ALREADY FIGHTING THE PERCEPTION THAT IT IS USING A HARDBALL LEGAL STRATEGY IN CASES INVOLVING INVESTORS AND FORMER EMPLOYEES STATE REGULATORS HAVE TOLD PRUDENTIAL THEY WON'T TOLERATE ATTEMPTS BY THE BROKERAGE FIRM TO STRONGARM LIMITEDPARTNERSHIP INVESTORS OUT OF ARBITRATION OR LITIGATION AND INTO A 330 MILLION REPARATIONS FUND THE FUND WAS SET UP IN OCTOBER AS PART OF A SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION AND 49 STATE REGULATORS INVOLVING INVESTORS WHO WERE ALLEGEDLY MISLED INTO BUYING HIGHRISK PARTNERSHIPS IN THE 1980S MORE BROADLY THE PARTNERSHIP ARBITRATION CASE REFLECTS GROWING PRESSURE BY THE BROKERAGE INDUSTRY TO QUASH NONLAWYERS FROM REPRESENTING INVESTORS IN CASES BROUGHT AGAINST SECURITIES FIRMS SEVERAL MONTHS AGO A CONTROVERSIAL PLAN BY THE SECURITIES INDUSTRY CONFERENCE ON ARBITRATION WHICH DRAFTS AND MONITORS ARBITRATION CODES PROPOSED BARRING NONLAWYERS IN SUCH ARBITRATION CASES IN THE MICHIGAN CASE PRUDENTIAL ARGUED THAT THE RETAINER AGREEMENT BETWEEN PARTNERSHIP ARBITRATION AND ITS CLIENTS DIDN'T DISCLOSE THAT ITS PRINCIPALS AREN'T LICENSED LAWYERS IN ITS SUIT FILED IN A GENESEE MICH COURT PRUDENTIAL SAID THE FORMER BROKERS OPENLY SOLICITED AND INITIATED THE FILING OF CLAIMS AGAINST PRUDENTIAL WITHOUT THE LEGAL TRAINING NECESSARY TO DISTINGUISH MERITORIOUS AND NONMERITORIOUS CLAIMS RESULTING IN UNNECESSARY AND UNJUSTIFIED LITIGATION AND LEGAL EXPENSES JUDGE DUNCAN M BEAGLE AGREED IN AN EIGHTPAGE OPINION HE WROTE THAT THE FORMER BROKERS ARE INDISPUTABLY PROVIDING LEGAL ADVICE ON SPECIFIC PROBLEMS TO CLIENTS PROVISION OF PERSONAL ADVICE PECULIAR TO A SPECIFIC LEGAL PROBLEM IS THE UNAUTHORIZED PRACTICE OF LAW A TRIAL DATE IN THE CASE HAS BEEN SET FOR MAY 27 MR STOUT COUNTERS THAT WHAT COUNTS IS THAT HE AND HIS ASSOCIATES ARE EXPERTS ON PARTNERSHIPS HE SAYS THE INJUNCTION WON'T HURT HIS FIRM MUCH BECAUSE FEARING AN INJUNCTION PARTNERSHIP ARBITRATION HAD STOPPED DIRECTLY HANDLING ARBITRATION CLAIMS INSTEAD THE FIRM HAS TURNED OVER ITS CASES CURRENTLY MORE THAN 100 INVESTORS SEEKING A TOTAL OF ABOUT 20 MILLION TO AN OUTSIDE LAWYER TO HANDLE THE LAWYER WALTER BAUMGARDNER IS A FORMER PRUDENTIAL SECURITIES BRANCH MANAGER HE HAS THE EXPERIENCE AND THE KNOWHOW MR STOUT SAYS OF MR BAUMGARDNER MEANTIME PARTNERSHIP ARBITRATION RECEIVES AN HOURLY RATE OF 150 FOR ASSISTING IN THE DISPUTES IT DOESN'T TAKE A WHOLE LOT OF TIME TO GO THROUGH THESE CASES HE SAYS IN THE MICHIGAN CASE PRUDENTIAL AND ITS LAWYERS HAVE INSISTED THAT PARTNERSHIP ARBITRATION ADHERE TO LAWYERS' PRINCIPLES AND NOT DIRECTLY CONTACT PRUDENTIAL EMPLOYEES ABOUT TESTIFYING AT ARBITRATION HEARINGS MR STOUT SAYS BUT HE SAYS PRUDENTIAL HAS CONTACTED HIS FIRM'S CLIENTS DIRECTLY TO SETTLE THEIR CLAIMS AND MR STOUT HAS PRESENTED EVIDENCE IN THE MICHIGAN CASE THAT PRUDENTIAL HAS TOLD SOME OF THESE CLIENTS THAT IF THEY CHOOSE NOT TO PAY PARTNERSHIP ARBITRATION FOR ITS SERVICES AND THE ARBITRATION FIRM INSISTS ON PAYMENT PRUDENTIAL WILL DEFEND THEM AGAINST THOSE COLLECTION EFFORTS WE FEEL WE'RE RIGHT AND WE WON'T BACK DOWN NO MATTER WHAT THEY DO MR STOUT SAYS ALTHOUGH HIS FIRM NO LONGER DIRECTLY HANDLES THE ARBITRATION CASES HE SAYS PRU STILL DOESN'T LIKE US A WHOLE LOT FOR ITS PART PRUDENTIAL SAYS IT ISN'T BENT ON REVENGE THE FIRM CONTENDS THAT IT SIMPLY DOESN'T WANT TO BE VULNERABLE TO INVESTORS FILING CLAIMS A SECOND TIME IF THEY LOSE THE ORIGINAL CASE MAKING THE ARGUMENT THAT THEY WEREN'T PROPERLY REPRESENTED IF PEOPLE WANT TO BRING CASES FINE SAYS PRUDENTIAL SPOKESMAN WILLIAM AHEARN BUT IN SIMILAR CASES IN THE PAST WE HAVE ARGUED THAT WE SHOULDN'T LEAVE OURSELVES OPEN TO SOME KIND OF DOUBLE INDEMNITY HE SAYS 9312280100 931228 OFFICIALS FIRED AT METROPOLITAN LIFE INSURANCE DISMISSALS TIED TO TACTICS USED IN POLICY SALES REFUND OFFER EXTENDED BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK METROPOLITAN LIFE INSURANCE CO FIRED SEVERAL OFFICIALS LINKED TO QUESTIONABLE SALES TACTICS IN ITS TAMPA OFFICE AND ACKNOWLEDGING THAT THE PRACTICES EXTENDED BEYOND FLORIDA OFFERED REFUNDS TO AN ADDITIONAL 45000 CUSTOMERS WHO MAY HAVE BEEN MISLED INTO BUYING LIFE INSURANCE THE ACTIONS FOLLOW A RECENTLY COMPLETED INVESTIGATION COMMISSIONED BY MET THAT FOUND RESPONSIBILITY FOR THE QUESTIONABLE SALES PRACTICES STOPPED AT RICHARD MAURER A MET SENIOR VICE PRESIDENT IN CHARGE OF THE LIFE INSURANCE SALES FORCE IN AN INTERVIEW MET CHAIRMAN HARRY KAMEN SAID MR MAURER KNEW ABOUT THE SALES PROBLEMS BUT FAILED TO STOP THEM IN ADDITION TO FIRING MR MAURER THE COMPANY DISMISSED SIX OTHER OFFICIALS INCLUDING RICK URSO THE TAMPA BRANCH MANAGER MR URSO CREATED A PROGRAM TO MARKET LIFE INSURANCE POLICIES WHICH CARRY HIGH COMMISSIONS AS RETIREMENT ACCOUNTS ACCORDING TO MET AND AN ADMINSTRATIVE ORDER BY THE FLORIDA INSURANCE DEPARTMENT MET ALSO ANNOUNCED A REORGANIZATION OF ITS REGULATORYCOMPLIANCE DEPARTMENT INTENDED TO ASSURE CONSUMERS THAT THEY WON'T BE MISLED BY SALES AGENTS WE KNOW WHAT WENT WRONG MR KAMEN SAID IN AN INTERVIEW WE'RE TAKING ACTION SO IT DOESN'T HAPPEN AGAIN HOWEVER THE CHANGES WON'T DETER THE FLORIDA INSURANCE DEPARTMENT WHICH ANNOUNCED ITS OWN PROBE OF MET IN AUGUST ALTHOUGH FLORIDA HAS YET TO COMPLETE ITS INVESTIGATION IT ALREADY HAS ORDERED THE COMPANY TO WITHHOLD EXECUTIVE BONUSES UNTIL IT SETS ASIDE MONEY TO PAY AN UNDETERMINED FINE SEVERAL OTHER STATES HAVE JOINED FLORIDA IN ITS INVESTIGATION I AM ENCOURAGED BY THIS STEP FLORIDA INSURANCE COMMISSIONER TOM GALLAGHER SAID HOWEVER THE DEPARTMENT IS IN THE MIDDLE OF A BROADBASED INVESTIGATION OF THE EXTENT OF WRONGDOING BY MET LIFE AND THE INVESTIGATION WILL PROCEED TO ITS CONCLUSION MET'S INVESTIGATION CONDUCTED BY THE NEW YORK LAW FIRM OF DEBEVOISE & PLIMPTON FOUND THAT THE SALES TACTICS IN TAMPA ALSO WERE PRACTICED BY OTHER MET OFFICES INCLUDING ONE IN DALLAS SPECIFICALLY THOSE OFFICES SENT INSURANCE SALES LITERATURE THAT DOESN'T MENTION INSURANCE MR KAMEN SAID BETWEEN 30000 AND 45000 CUSTOMERS RECEIVED THE MATERIAL AND EACH WILL BE OFFERED A REFUND HE SAID THAT MET EXPECTS AS MANY AS 18000 POLICYHOLDERS WILL REQUEST REFUNDS AND THAT THE COMPANY WILL PAY THEM AS MUCH AS 30 MILLION DETAILS OF HOW MET WILL DETERMINE WHO IS ELIGIBLE HOWEVER HAVE YET TO BE DETERMINED MET ALREADY HAS OFFERED TO REFUND INSURANCE PREMIUMS PAID BY 15000 CUSTOMERS WHO BOUGHT INSURANCE FROM THE TAMPA OFFICE SO FAR 6000 POLICYHOLDERS HAVE REQUESTED REFUNDS AND MET EXPECTS TO PAY THEM 11 MILLION MR KAMEN SAID MUCH OF THE PROBLEM CAN BE TRACED TO POOR FOLLOWUP ON THE PART OF MET'S COMPLIANCE OPERATION WHICH TURNED UP EVIDENCE OF QUESTIONABLE SALES PRACTICES BUT FAILED TO PUT A HALT TO THEM UNDER A SHAKEUP ANNOUNCED YESTERDAY THE CHIEF COMPLIANCE OFFICER WILL REPORT DIRECTLY TO MR KAMEN INSTEAD OF HAVING SEPARATE COMPLIANCE OFFICERS REPORTING TO THE DEPARTMENT HEADS RESPONSIBLE FOR PARTICULAR PRODUCTS SUCH AS LIFE INSURANCE MET SAID IT ALSO WILL MAKE A GREATER EFFORT TO EDUCATE ITS 13000 INSURANCE AGENTS ABOUT ETHICS AND WHAT THEY CAN REPRESENT TO POLICYHOLDERS OTHER OFFICIALS FIRED BY MET WERE VICE PRESIDENTS ARTHUR SPECTOR WILLIAM LATTA JAMES HIGGINS AND GARY VOITH AS WELL AS THE REGIONAL SALES MANAGER FOR THE TAMPA OFFICE DENNIS SCHNEIDER THEIR DISMISSALS FOLLOW AN EARLIER HOUSECLEANING OF OFFICIALS RESPONSIBLE FOR A MET SALES OFFICE IN PITTSBURGH WHICH PENNSYLVANIA OFFICIALS ARE INVESTIGATING FOR CHURNING INSURANCE CUSTOMERS TO GENERATE COMMISSIONS CHURNING INVOLVES GETTING A CUSTOMER TO BUY A NEW AND UNNECESSARY LIFE INSURANCE POLICY WITH MONEY RAISED BY CASHING IN AN OLD POLICY 9312280099 931228 WHO'S NEWS VIACOM INC VIACOM INC NEW YORK JERRY OFFSAY 40 YEARS OLD WAS NAMED PRESIDENT OF PROGRAMMING AT THE SHOWTIME NETWORKS INC UNIT OF THIS ENTERTAINMENT AND COMMUNICATIONS CONCERN A NEW POSITION MR OFFSAY WAS MOST RECENTLY EXECUTIVE VICE PRESIDENT ABC PRODUCTIONS AT CAPITAL CITIES/ABC INC 9312280098 931228 PARAMOUNT DEAL TO CUT BUYER'S FUTURE PROFITS GOODWILL CHARGES TO TOTAL SEVERAL BILLION DOLLARS SOME ACCOUNTANTS SAY BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHICHEVER COMPANY ENDS UP WINNING THE THREEMONTH BATTLE FOR PARAMOUNT COMMUNICATIONS INC THERE IS AT LEAST ONE UNWANTED SIDEEFFECT BILLIONS OF DOLLARS OF GOODWILL CHARGES THAT WILL LOWER PROFITS FOR THE NEXT 20 TO 40 YEARS ACCOUNTANTS SAY GOODWILL OR THE EXCESS OVER BOOK VALUE PAID FOR A COMPANY'S ASSETS MUST BE DEDUCTED FROM THE ACQUIRING COMPANY'S FUTURE PROFITS PARAMOUNT'S BOOK VALUE WAS A BIT OVER 4 BILLION IN 1992 ACCORDING TO THE COMPANY'S ANNUAL REPORT AS A RESULT THE CURRENT OFFERS FOR PARAMOUNT COULD GENERATE CLOSE TO 58 BILLION IN GOODWILL SAYS ROBERT WILLENS AN ACCOUNTING ANALYST FOR AMERICAN EXPRESS CO'S LEHMAN BROTHERS UNIT RIGHT NOW OF COURSE RIVAL BIDDERS QVC NETWORK INC AND VIACOM INC ARE MORE CONCERNED ABOUT WHOSE OFFER WILL PREVAIL QVC'S BID WHICH PARAMOUNT'S BOARD ENDORSED LAST WEEK IS CURRENTLY VALUED AT 98 BILLION OR 8146 A SHARE VIACOM'S OFFER IS CURRENTLY VALUED AT ABOUT 96 BILLION OR 7962 A SHARE BUT THE COMPANY HAS UNTIL JAN 7 TO MAKE A NEW PROPOSAL THE ACQUISITION BY EITHER OF THE CABLE TELEVISION COMPANIES WOULD CREATE A HUGE MEDIA AND ENTERTAINMENT CONGLOMERATE TO HELP EASE THE DRAG ON PROFITS ACCOUNTING RULES PERMIT GOODWILL DEDUCTIONS TO BE SPREAD OVER AS MUCH AS 40 YEARS ACCOUNTANTS DIFFER ON HOW LONG GOODWILL FROM PARAMOUNT WOULD HAVE TO BE SPREAD THE DETERMINATION WILL DEPEND ON HOW MUCH GOODWILL THE COMPANY REGULATORS AND OUTSIDE AUDITORS AGREE TO ASSIGN TO CERTAIN PARAMOUNT ASSETS SUCH AS CONTRACTS WITH MOVIE STARS AND RIGHTS TO MOVIES AND BOOKS JANET PEGG AN ACCOUNTING ANALYST FOR BEAR STEARNS & CO NOTES THAT PARAMOUNT IS IN THE MOVIEMAKING AND SPORTS BUSINESS WITH LONGERLIFE ASSETS THAN QVC AND VIACOM WHOSE ASSETS BECOME QUICKLY OBSOLETE WITH CHANGING TECHNOLOGY UNDER ACCOUNTING RULES THE LONGER AN ASSET'S LIFE THE LONGER AN ACQUIRER CAN STRETCH OUT CHARGING ITS GOODWILL AGAINST PROFITS IF THE ACQUIRER IS FORCED TO RESTRICT THE GOODWILL WRITEOFF TO ONLY 20 YEARS AS MR WILLENS BELIEVES THE ANNUAL CHARGE AGAINST THE NEWLY FORMED COMPANY'S PROFITS COULD BE AS MUCH AS 290 MILLION FOR EACH OF THOSE YEARS IF THE COMPANY GETS TO SPREAD THE WRITEOFF OVER 40 YEARS WHICH MS PEGG BELIEVES IS POSSIBLE THE PROFIT HIT WOULD BE ONLY 145 MILLION ANNUALLY NO MATTER HOW LONG THIS SOCALLED AMORTIZATION PERIOD LASTS IT WOULD BE A HUGE BURDEN FOR THE NEW COMPANY TO LIVE WITH SAYS MR WILLENS FOR SOME COMPANIES SUCH AS RJR NABISCO INC IT HAS PROVED TO BE A BIG PROBLEM FINANCIAL ANALYSTS WILL HAVE TO VIEW THE NEW ENTITY ON THE BASIS OF CASH FLOW PROFIT PLUS DEPRECIATION RATHER THAN PROFITS ALONE OR THE STOCK WILL BECOME GREATLY DEPRESSED MS PEGG SAYS THAT THE NEW PARAMOUNT BUSINESS ENTITY WITH A HUGE OVERHANG OF GOODWILL WILL HAVE TO PROVE THAT THE SYNERGIES OF THE MERGER CAN OVERCOME THIS SIZABLE REDUCTION OF PROFITS IN YEARS TO COME INSTEAD WILLIAM F COSTELLO QVC'S EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAYS THAT IF QVC ACQUIRES PARAMOUNT WE EXPECT THAT ANALYSTS WOULD EVALUATE THE NEWLY FORMED COMPANY BASED ON ITS CASH FLOW RATHER THAN EARNINGS AN OUTSIDE SPOKESMAN FOR VIACOM SAYS THE COMPANY DECLINES TO COMMENT ON THE GOODWILL ISSUE ACCOUNTANTS SAY THE PENDING PARAMOUNT ACQUISITION ALSO COULD HAVE VARYING TAX CONSEQUENCES FOR PARAMOUNT SHAREHOLDERS THE EXPECTED USE OF MORE THAN 50 CASH IN THE TRANSACTION WOULD BOOST THE TAXES PAID BY A SELLER OF PARAMOUNT STOCK TAX RULES LOWER THE TAX BITE CONSIDERABLY FOR DEALS MADE WITH MORE THAN 50 STOCK DEPENDING ON WHAT PARAMOUNT STOCKHOLDERS PAID FOR THE STOCK ORIGINALLY AND WHEN THEY PURCHASED IT MR WILLENS SAYS ABRAHAM BRILOFF A PROFESSOR EMERITUS OF ACCOUNTING AT CITY UNIVERSITY OF NEW YORK'S BARUCH COLLEGE SAYS THAT BECAUSE OF THE LARGE AMOUNTS OF FUNDS BEING LOANED TO QVC AND VIACOM BY OUTSIDE PARTIES THE ACQUISITION OF PARAMOUNT AT CURRENT HIGH BIDS IS A QUASILEVERAGED BUYOUT IN A TRUE LEVERAGED BUYOUT INDIVIDUALS BORROW MONEY AT HIGH INTEREST RATES TO BUY A COMPANY AND CAN PAY SUCH DEBT BY SELLING OFF CERTAIN COMPANY ASSETS WHOEVER ACQUIRES PARAMOUNT AT THESE STRATOSPHERIC PRICES WILL HAVE TO DISPOSE OF SOME UNITS OR ASSETS TO PAY OFF DEBT MR BRILOFF SAYS THERE WILL BE A LOT OF UPROOTING OF PERSONNEL AND TURMOIL AT THE NEW COMPANY 9312280097 931228 WHO'S NEWS TSL INC TSL INC DENVER FORMER COLORADO GOV RICHARD D LAMM 58 YEARS OLD AND MARTIN HART A DENVERAREA ENTREPRENEUR WERE NAMED DIRECTORS OF THIS DEVELOPER OF ANTITAMPERING TECHNOLOGIES EXPANDING THE BOARD'S SIZE TO SEVEN MEMBERS 9312280096 931228 ECONOMIC GROWTH OF 4TH QUARTER SEEN HELPING NEXT PERIOD WASHINGTON FOURTHQUARTER ECONOMIC GROWTH SHOULD BE STRONG ENOUGH TO CARRY SOME MOMENTUM INTO THE FIRST PART OF THE YEAR BUT INFLATION IS EXPECTED TO STAY UNDER CONTROL ALAN BLINDER A MEMBER OF PRESIDENT CLINTON'S COUNCIL OF ECONOMIC ADVISERS SAID IN AN INTERVIEW MR BLINDER SAID THE COUNCIL NOW BELIEVES THAT FOURTHQUARTER GROWTH HAS RUN AT A 4 TO 5 ANNUAL RATE THAT'S IN LINE WITH MANY PRIVATE ECONOMIC FORECASTS THE ECONOMY GREW AT A 29 PACE IN THE THIRD QUARTER SINCE AUGUST WHEN THE COUNCIL PREDICTED THAT THE ECONOMY WOULD GROW AT ROUGHLY A 3 ANNUAL RATE IN THE SECOND HALF OF 1993 THINGS HAVE DEFINITELY BRIGHTENED MR BLINDER SAID I'D SAY THE BIGGEST CHANGE IS THAT THE RISKS WHICH LOOKED LOADED ON THE DOWNSIDE LOOK MUCH MORE SYMMETRICAL TODAY MR BLINDER SAID WHEN THE CEA ISSUES ITS NEXT OFFICIAL FORECAST IN FEBRUARY MR BLINDER SAID HE ANTICIPATES IT WILL PUT ECONOMIC GROWTH IN 1994 AT ABOUT 3 ESSENTIALLY THE SAME OUTLOOK THAT THE CEA PROVIDED OVER THE SUMMER WHILE WE LOOKED A TAD OPTIMISTIC IN AUGUST WE NOW LOOK MIDDLEOFTHEROAD OR EVEN A TAD PESSIMISTIC MR BLINDER SAID BLINDER SAID GROWTH SHOULD BE FAIRLY CONSISTENT FROM QUARTER TO QUARTER IN 1994 BUT HE CAUTIONED THAT THERE ARE OFTEN SPECIAL FACTORS THAT CAN'T BE FORESEEN A YEAR AGO NOBODY PREDICTED THE MIDWEST FLOODS WHICH HAVE CAUSED THINGS TO BOUNCE AROUND A BIT MR BLINDER SAID MR BLINDER SAID CURRENT ECONOMIC STRENGTH IS EMANATING FROM SEVERAL AREAS INCLUDING CONSUMER SPENDING BUSINESS INVESTMENT AND HOUSING OFFSETTING THE ROBUSTNESS IN THESE SECTORS TO SOME DEGREE IS WEAK GOVERNMENT SPENDING AND LACKLUSTER EXPORTS DESPITE THE OVERALL STRENGTH OF THE ECONOMY MR BLINDER SAID THAT NONE OF THE INDICATORS OF UNDERLYING INFLATION SHOW CAUSE FOR CONCERN IN PARTICULAR HE SAID LABOR COSTS REMAIN EXTREMELY WELL BEHAVED AND OIL PRICES HAVE FALLEN QUITE SUBSTANTIALLY OVER THE LAST SIX MONTHS MR BLINDER SAID THE PERIOD AHEAD WILL BE A BUSY ONE FOR THE COUNCIL HE NOTED THAT THE COUNCIL HAS A ROLE IN BOTH THE CLINTON ADMINISTRATION'S HEALTHCARE AND WELFARE REFORM EFFORTS IN ADDITION THE COUNCIL IS RESPONSIBLE FOR WRITING THE PRESIDENT'S ANNUAL ECONOMIC REPORT WHICH USUALLY KEEPS US PRETTY BUSY IN THE MONTH OF JANUARY 9312280095 931228 MARKETING & MEDIA NOTED WHO'S NEWS ZIFF COMMUNICATIONS CO'S ZIFFDAVIS PUBLISHING CO UNIT SAID JOHN DICKINSON WAS NAMED EDITOR IN CHIEF OF A NEW PERSONALCOMPUTER MAGAZINE TO BE LAUNCHED LATE NEXT YEAR THE MAGAZINE AS YET UNNAMED WILL BE AIMED AT CONSUMERS OF PERSONAL COMPUTERS AND DIGITAL ELECTRONICS MR DICKINSON 49 YEARS OLD IS A VICE PRESIDENT AND EDITOR IN CHIEF OF ZIFF DESKTOP INFORMATION HE JOINED ZIFFDAVIS IN 1984 AS A CONTRIBUTING EDITOR OF PC MAGAZINE WHERE HE BECAME SPECIALPROJECTS EDITOR IN 1985 ZIFFDAVIS PUBLISHES INFORMATION ABOUT COMPUTER PRODUCTS THROUGH MAGAZINES NEWSPAPERS TRADE SHOWS BOOKS AND OTHER CHANNELS 9312280094 931228 MONEYFUND ASSETS FELL BY 327 BILLION IN THE LATEST WEEK WASHINGTON MONEYMARKET MUTUALFUND ASSETS FELL 327 BILLION IN THE WEEK ENDED LAST WEDNESDAY TO 59205 BILLION FROM A REVISED 59532 BILLION THE PREVIOUS WEEK THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 654 RETAIL MONEYMARKET MUTUAL FUNDS FELL BY 259 BILLION TO 39573 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 407 TAXABLE MONEYMARKET FUNDS FELL BY 263 BILLION TO 30740 BILLION ASSETS OF 247 RETAIL TAXEXEMPT FUNDS ROSE BY 422 MILLION TO 8833 BILLION ASSETS OF 275 INSTITUTIONAL MONEYMARKET FUNDS FELL BY 6845 MILLION TO 19632 BILLION AMONG INSTITUTIONAL FUNDS THE 221 TAXABLE MONEYMARKET FUNDS' ASSETS FELL BY 5792 MILLION TO 17391 BILLION ASSETS OF 54 TAXEXEMPT FUNDS DECREASED BY 1053 MILLION TO 2241 BILLION 9312280093 931228 WHO'S NEWS ALZA CORP ALZA CORP PALO ALTO CALIF BRUCE C COZADD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS BIOTECHNOLOGY COMPANY MR COZADD 30 YEARS OLD IS CURRENTLY VICE PRESIDENT OF CORPORATE PLANNING AND ASSUMES RESPONSIBILITIES NOW HELD BY ALZA'S CHIEF EXECUTIVE OFFICER ERNEST MARIO 9312280092 931228 INTERNATIONAL BRITISH STEEL'S GREAT PAIN TURNS TO PROFIT DESPITE WOES OTHER EC STEELMAKERS RESIST CUTBACKS BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL MIDDLESBROUGH ENGLAND IN THE LATE 1970S WHEN EUROPE'S STEEL INDUSTRY WAS IN A CRISIS BRITISH STEEL PLC MADE THE GUINNESS BOOK OF WORLD RECORDS FOR THE GREATEST LOSS EVER SUFFERED BY A UK COMPANY NOW THE INDUSTRY IS IN A CRISIS AGAIN AND BRITISH STEEL IS SETTING A DIFFERENT KIND OF RECORD IT'S THE ONLY PROFITABLE MAJOR STEELMAKER IN EUROPE WHILE BRITISH STEEL'S TURNAROUND IS A RARE SUCCESS IN THIS TROUBLED INDUSTRY THE REVERSAL CAME AT A HIGH COST IT MEANT THE LOSS OF SOME 220000 JOBS OR 85 OF THE COMPANY'S UK WORKFORCE OVER 25 YEARS AS WELL AS THE CLOSURE OF 33 OF THE STEELMAKER'S 37 FACILITIES THE JOB LOSS CONTRIBUTED TO HIGH UNEMPLOYMENT THROUGHOUT THE UK DESTROYING MANY INDUSTRIAL COMMUNITIES THAT'S A PRICE MANY EUROPEAN STEELMAKERS AREN'T WILLING TO PAY ON THE CONTINENT WHERE STATEOWNED STEELMAKERS VIEW THE INDUSTRY AS A SOURCE OF EMPLOYMENT AND NATIONAL PRIDE MOST WOULD RATHER SUBSIDIZE THAN CUT BACK DEFYING EUROPEAN COMMUNITY EFFORTS TO REFORM THE INDUSTRY THEY HOBBLE FROM CALAMITY TO CALAMITY THIS MONTH'S EUROPEAN STEEL BAILOUT DOES LITTLE TO CHANGE THE SITUATION IT ALLOWS STEELMAKERS 76 BILLION IN SUBSIDIES BUT REQUIRES ONLY SOME FIVE MILLION METRIC TONS OF CUTBACKS THOUGH THE INDUSTRY NEEDS TO CUT 30 MILLION OF ITS 160 MILLION TONS OF CAPACITY TO REGAIN HEALTH THE EC HOPES PRODUCERS WILL VOLUNTARILY ELIMINATE ANOTHER 25 MILLION TONS BUT THAT DOESN'T SEEM LIKELY WITH AT LEAST EIGHT EUROPEAN COUNTRIES THAT STILL MAINTAIN SOME GOVERNMENT CONTROL OVER THEIR STEEL INDUSTRIES POLITICIANS BALK AT THE NECESSARY CUTBACKS AS THEY HAVE IN THE PAST THE INDUSTRY MAY HAVE TO SHED SOME 50000 OF ITS 352000 JOBS AND GOVERNMENTS CAN'T FACE THE POLITICAL IMPLICATIONS YOU JUST GET INTO A VICIOUS CIRCLE SAYS PETER DUPONT UBS SECURITIES' EUROPEAN STEEL ANALYST IT'S A GAME OF CHICKEN SOMEBODY NEEDS TO CLOSE ONE BIG PLANT BUT NOBODY WILL DO IT THE RESULT HE SAYS IS A CRISIS IN THIS BUSINESS EVERY FEW YEARS THIS SENSE OF DEJA VU IS PARTICULARLY MADDENING FOR BRITISH STEEL WHICH WAS PRIVATIZED IN 1988 THE COMPANY HAS CUT ITS CAPACITY OVER 15 YEARS TO 135 MILLION TONS FROM 24 MILLION THOUGH MOST STEELMAKERS HAVE BEEN SHRINKING THE SACRIFICES AT BRITISH STEEL THE SECONDLARGEST EUROPEAN PRODUCER AFTER FRANCE'S USINOR SACILOR AND THE WORLD'S FOURTHLARGEST IN TERMS OF OUTPUT HAVE TOPPED OTHERS ACCORDING TO INTERNATIONAL IRON & STEEL INSTITUTE FIGURES THE UK INDUSTRY CUT EMPLOYMENT 79 SINCE 1974 COMPARED WITH 55 FOR THE REST OF EUROPE BETWEEN 1990 AND 1992 THE UK INDUSTRY CUT PRODUCTION 10 VS 2 FOR THE REST OF EUROPE WE FIND IT VERY VERY FRUSTRATING SAYS BRIAN MOFFAT THE STEELMAKER'S CHAIRMAN MR MOFFAT RECENTLY READ THROUGH A 1932 SCRAPBOOK ABOUT THE STEEL BUSINESS FINDING EERIE SIMILARITIES IT WAS ALL ABOUT SUBSIDIES IN EUROPE AND UNFAIR TRADE DISPUTES HE SAYS IT COULD HAVE BEEN TODAY THE CHRONIC STEEL WOES ALSO PORTEND DIFFICULTY IN SORTING OUT OTHER PROBLEMS IN THE EUROPEAN UNION WHEN IT COMES TO THE CRUNCH THE GERMANS LOOK AFTER GERMANY THE ITALIANS LOOK AFTER ITALY AND NOTHING HAPPENS SAYS PHILIP HAMPTON BRITISH STEEL'S FINANCE DIRECTOR IF WE DON'T GET STEEL SORTED OUT WHAT HOPE IS THERE FOR THE REST OF INDUSTRY THE SYMBOLS OF BRITISH STEEL'S RADICAL EFFICIENCY DRIVE AND ITS SIDE EFFECTS ARE VISIBLE ALL OVER THE COMPANY'S TEESSIDE WORKS HERE IN MIDDLESBROUGH IN NORTHERN ENGLAND WHERE THE INDUSTRIAL REVOLUTION BEGAN IN 1966 WHEN LAWRENCE CARMAN STARTED WORKING IN THE SOAKING PIT WHERE SLABS OF STEEL ARE REHEATED THERE WERE 15 PEOPLE ON A SHIFT HE DROVE A NOISY CRANE BRAVING HEAT AND FUMES TO STEER THE GIANT SLABS NOW THERE ARE JUST FIVE ON A SHIFT MR CARMAN THE ONLY PERSON VISIBLE IN THE WHOLE CAVERNOUS SHED SITS IN A QUIET AIRCONDITIONED CONTROL ROOM IN SWEATER AND JEANS SMOKING A CIGARETTE HE WATCHES SLABS ROLL BY WHEN THE COMPUTER TELLS HIM TO PRESS A BUTTON HE PRESSES IT I CAN GO THREE HOURS WITHOUT SEEING A PERSON SAYS THE 48YEAROLD MR CARMAN ALL HIS FORMER COWORKERS RETIRED OR WERE LET GO HE STILL SEES THEM AROUND TOWN IT'S A SAD FACT OF LIFE THESE REDUNDANCIES BUT THAT'S PROGRESS HE SAYS A DOZEN YEARS AGO TEESSIDE HAD 25000 WORKERS AND REQUIRED NEARLY 16 LABOR HOURS TO MAKE A TON OF STEEL NOW AFTER SPENDING 580 MILLION US 8726 MILLION ON NEW TECHNOLOGY FOR THE MILL IT HAS 4200 WORKERS AND CAN MAKE A TON OF CRUDE STEEL WITH 23 LABOR HOURS ANALYSTS SAY IT'S PROBABLY THE MOST EFFICIENT MILL IN EUROPE INSTEAD OF 15 WORKERS ON THE BLAST FURNACE THERE ARE FOUR THE BASICOXYGEN FURNACES WHICH TURN IRON INTO STEEL HAVE FIVE PRODUCTION PLANNERS INSTEAD OF 25 THE BEAM MILL CUT ITS EMPLOYMENT BY 60 AND DOUBLED ITS TONNAGE BACK IN THE LATE 1970S THE COMPANY WITH NO BONUS SYSTEM WAS SADDLED WITH UNION SQUABBLES AND DISMAL PRODUCTIVITY THEY WANTED TO MAKE A PROFIT BUT THERE WAS NO REAL INCENTIVE SAYS JW CAMPBELL THE PLANT MANAGER THE STEEL INDUSTRY WAS A POLITICAL FOOTBALL IT WAS BASICALLY TO PRESERVE JOBS THAT ENDED WITH MARGARET THATCHER MRS THATCHER DIDN'T GIVE A DAMN IF WE SHUT THE WHOLE INDUSTRY DOWN IF IT WASN'T COMPETITIVE MR MOFFAT SAYS THE GOVERNMENT CALLED IN SIR IAN MAC THE KNIFE MACGREGOR WHO WANTED TO BE ABLE TO FIRE A BULLET THROUGH A PLANT'S MELTING SHOP WITHOUT HITTING ANYONE THE COMPANY WEAKENED THE UNION BY ABSORBING A 13WEEK STRIKE BRITISH STEEL'S 10 INTEGRATED MILLS BECAME FOUR AS BRITISH STEEL CUT BACK THE GOVERNMENT REVISED ITS BALANCE SHEET VARIOUS TIMES AND IN 1989 WROTE OFF ALL DEBT AND PRIVATIZED THE COMPANY BRITISH STEEL DID ESSENTIALLY WHAT OTHER STEELMAKERS MUST NOW DO TO BE PROFITABLE IN EXCHANGE FOR GOVERNMENT AID IT SLASHED ITS CAPACITY AND COSTS NOW SAYS LEHMAN BROTHERS STEEL ANALYST DAVID MORGAN IN LONDON THEY'RE DEFINITELY OUT AHEAD WITH COSTS 20 LOWER THAN EUROPEAN RIVALS PARTLY BECAUSE OF THE DEVALUED POUND THE STEELMAKER HAS TRIPLED EXPORTS FURTHERMORE THE COMPANY MAY EVEN CONSIDER BUYING ONE OF ITS BIG EUROPEAN RIVALS BUT BECAUSE FEW OTHERS HAVE FOLLOWED BRITISH STEEL'S LEAD THE EUROPEAN INDUSTRY REMAINS BURDENED WITH EXCESS CAPACITY THIS AND THE ONGOING SUBSIDIES FUEL A CONSTANT PRICE WAR THAT PILES UP LOSSES FOR STEELMAKERS EVEN BRITISH STEEL THOUGH PROFITABLE IS JUST BARELY SO IT HAD PRETAX PROFIT OF ONLY 27 MILLION FOR THE SIX MONTHS ENDED OCT 2 ON SALES OF 197 BILLION WHILE BRITISH STEEL SUCCEEDED IN MAKING ITS STEEL BUSINESS COMPETITIVE THE REWARDS HAVE BEEN FEW IN TEESSIDE THE CUTBACKS DEVASTATED THE AREA MR CAMPBELL SAYS THE AREA STILL HAS 13 UNEMPLOYMENT AND 25 APPLICANTS FOR EVERY JOB THOSE STILL WORKING AT BRITISH STEEL EARN ABOUT 19 AN HOUR IN WAGES AND BENEFITS COMPARED WITH 35 FOR THE GERMANS AND 33 FOR THE AMERICANS ACCORDING TO PAINEWEBBER ANALYST PETER MARCUS LOOKING AT THAT RECORD IT'S NO SURPRISE THAT COUNTRIES SUCH AS ITALY AND SPAIN HAVE RESISTED BRITISH STEEL'S COURSE EVEN THE STEELMEN AT TEESSIDE THOUGH THEY BELIEVE THEY'VE DONE THE RIGHT THING SOMETIMES WONDER WHETHER IT'S WORTH THE PAIN I DON'T THINK THERE'S BEEN A TIME IN THE STEEL BUSINESS WHEN THERE HASN'T BEEN THE SAME BLOODY AGENDA OVERCAPACITY SUBSIDIES RECAPITALIZATION BANKRUPTCIES GALORE SAYS BARRY CHEETHAM THE MILL'S COMMERCIAL MANAGER NOTHING CHANGES THE ONLY THING THAT HAPPENS IS STEEL BECOMES A SMALLER AND SMALLER PART OF THE ECONOMY 9312280091 931228 BUSINESS BRIEFS DEAN FOODS CO COMPLETED THE ACQUISITION OF THE BIRDS EYE FROZENVEGETABLE BUSINESS FROM KRAFT GENERAL FOODS A UNIT OF PHILIP MORRIS COS LEXINGTON SAVINGS BANK COMPLETED THE ACQUISITION OF SUBURBAN NATIONAL CORP ARLINGTON MASS FIFTH THIRD BANCORP'S MIDWEST PAYMENT SYSTEMS WILL DELIVER CREDITCARD PROCESSING FOR ALL DRUG EMPORIUM INC CORPORATEOWNED STORES AND 17 OF ITS 25 FRANCHISES TANDY CORP'S RADIO SHACK DIVISION SIGNED A FRANCHISE AGREEMENT WITH TRIDENT GROUP INC ORLANDO FLA TO DISTRIBUTE AND MARKET RADIO SHACK PRODUCTS IN RUSSIA WELLSTEAD INDUSTRIES INC'S CONTROL RESOURCE SYSTEMS UNIT PURCHASED FSG INDUSTRIES INC BUFFALO NY FOR ABOUT 8 MILLION 9312280090 931228 TECHNOLOGY VARIAN ASSOCIATES INC TESTS WAYS TO MAKE MEMORYCHIP MATERIAL PALO ALTO CALIF VARIAN ASSOCIATES INC SAID IT BEGAN TESTING A NEW WAY OF MAKING THE MATERIAL USED IN ADVANCED COMPUTER MEMORY CHIPS AT FOUR MANUFACTURING SITES THE TECHNIQUE AIDS IN THE CHEMICAL AND PHYSICAL VAPOR DEPOSITION REQUIRED TO PRODUCE WAFERS FOR 16 MEGABIT AND 64 MEGABIT DYNAMIC RANDOMACCESSMEMORIES WAFERS ARE THE BASIC SILICON SUBSTRATE UPON WHICH THE CHIP'S CIRCUITRY IS ETCHED VARIAN DESCRIBED CUSTOMER FEEDBACK TO THE TECHNIQUE WHICH IT INTRODUCED LAST JULY AS VERY POSITIVE VARIAN A MAKER OF EQUIPMENT USED IN THE MANUFACTURE OF SEMICONDUCTORS DEVELOPED THE TECHNIQUE WITH TOKYO ELECTRON LTD OF JAPAN 9312280089 931228 WHO'S NEWS CADENCE DESIGN SYSTEMS INC CADENCE DESIGN SYSTEMS INC SAN JOSE CALIF RAYMOND J LANE 47 YEARS OLD WAS NAMED TO THE BOARD OF THIS MAKER OF DESIGN SOFTWARE HE SUCCEEDS BJ CASSIN 59 AN INVESTOR 9312280088 931228 WHO'S NEWS SUPERVALU INC SUPERVALU INC MINNEAPOLIS TED C WETTERAU WILL RETIRE FRIDAY AS VICE CHAIRMAN OF THIS INDEPENDENT FOOD WHOLESALER AND AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE WETTERAU INC UNIT OF SUPERVALU THE VICE CHAIRMAN POST WON'T BE FILLED AND LARRY ANDERSON VICE CHAIRMAN OF WETTERAU WILL HEAD THAT UNIT A SPOKESWOMAN SAID 9312280087 931228 BUSINESS BRIEF BRANFORD SAVINGS BANK STOCKRIGHTS ISSUE PLANNED TO INCREASE CAPITAL RATIO BRANFORD SAVINGS BANK BRANFORD CONN SAID IT PLANS TO RAISE BETWEEN 10 MILLION AND 11 MILLION IN CAPITAL AS PART OF AN EFFORT TO MEET A FEDERAL ORDER THE PLAN INCLUDES A RIGHTS OFFERING OF COMMON STOCK TO EXISTING SHAREHOLDERS AND IS CONDITIONED UPON A 1FOR10 REVERSE STOCK SPLIT THE BANK SAID IT RECEIVED LETTERS OF INTENT FROM CERTAIN SHAREHOLDERS TO INVEST AT LEAST 7 MILLION OF NEW CAPITAL SUBJECT TO CERTAIN CONDITIONS IT EXPECTS TO BEGIN THE OFFERING WITHIN 90 DAYS THE PLAN MUST BE APPROVED BY THE FEDERAL DEPOSIT INSURANCE CORP WHICH ORDERED THE BANK TO INCREASE ITS LEVERAGE CAPITAL RATIO TO AT LEAST 6 FROM ITS SEPT 30 LEVEL OF 25 THE BANK FACES STRICTER REGULATORY ACTION POSSIBLY APPOINTMENT OF A RECEIVER OR CONSERVATOR IF IT DOESN'T COMPLY WITH THE ORDER 9312280086 931228 WHO'S NEWS HPSC INC HPSC INC BOSTON THREE NEW DIRECTORS WERE NAMED AT THIS DENTAL EQUIPMENT CONCERN INCREASING THE BOARD TO EIGHT MEMBERS THE NEW DIRECTORS ARE SAMUEL P COOLEY SENIOR VICE PRESIDENT OF SHAWMUT NATIONAL CORP JOSEPH A BIERNAT RETIRED SENIOR VICE PRESIDENT AND TREASURER OF UNITED TECHNOLOGIES CORP AND J KERMIT BIRCHFIELD JR GENERAL COUNSEL OF M/ACOM INC 9312280085 931228 BUSINESS BRIEF ENVIRONMENTAL TECHNOLOGIES USA RECYCLING COMPANY ISSUES NEW SHARES TO RAISE CAPITAL ENVIRONMENTAL TECHNOLOGIES USA INC MINNEAPOLIS SAID IT RECEIVED 371125 OF ADDITIONAL EQUITY INVESTMENTS AND ISSUED 792250 COMMON SHARES THE FRESH CAPITAL WILL BE USED TO EXPAND PRODUCTION AND FUND WORKING CAPITAL FOR THE COMPANY'S CARPETRECYCLING UNIT UNITED RECYCLING INC ENVIRONMENTAL TECHNOLOGIES WHICH MAKES BIODEGRADABLE AND RECYCLED SUBSTITUTES FOR PLASTIC RESIN PRODUCTS PREVIOUSLY HAD ABOUT 49 MILLION COMMON SHARES OUTSTANDING THE COMPANY ALSO SAID IT HAS RETAINED ONE CAPITAL CORP A NEW YORK INVESTMENT BANKING FIRM TO HELP THE COMPANY IDENTIFY AND DEVELOP NEW BUSINESS POSSIBILITIES AND TO SEEK MERGER AND ACQUISITION OPPORTUNITIES 9312280084 931228 WHO'S NEWS GENERAL ELECTRIC CO GENERAL ELECTRIC CO FAIRFIELD CONN GE'S INDUSTRIAL AND POWER SYSTEMS UNIT NAMED TWO CORPORATE VICE PRESIDENTS RICHARD L PEASE 46 YEARS OLD FORMERLY VICE PRESIDENT OF BG AUTOMOTIVE MOTORS INC A GE MOTORS JOINT VENTURE WAS NAMED VICE PRESIDENT GE POWER DELIVERY ALSO RONALD R PRESSMAN 35 PREVIOUSLY REGIONAL EXECUTIVE FOR THE UNIT BECOMES VICE PRESIDENT FOR EUROPE AFRICA MIDDLE EAST SOUTHWEST ASIA AND THE COMMONWEALTH OF INDEPENDENT STATES FOR THE UNIT GE'S BUSINESSES INCLUDE CONSUMER AND INDUSTRIAL PRODUCTS BROADCASTING AIRCRAFT ENGINES AND FINANCIAL SERVICES 9312280083 931228 CHARITIES MUST GIVE RECEIPTS TO DONORS UNDER IRS RULES REGULATIONS SEEK TO ENFORCE LAWS ON TAX DEDUCTIONS SOME TO GET PARTIAL CREDIT BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NEW INTERNAL REVENUE SERVICE REGULATIONS SHOULD HELP ENSURE THAT TAXPAYERS WHO TAKE DEDUCTIONS FOR CHARITABLE DONATIONS PLAY BY THE RULES SAID MARC OWENS DIRECTOR OF THE IRS'S EXEMPT ORGANIZATIONS TECHNICAL DIVISION THE RULES AFFECT CHARITABLE CONTRIBUTIONS BEGINNING JAN 1 UNDER ONE OF THE NEW RULES CHARITIES MUST PROVIDE RECEIPTS FOR DONATIONS IN EXCESS OF 75 WHEN THE CHARITIES GIVE SOMETHING OF VALUE IN RETURN THE RECEIPT MUST SPELL OUT THE FAIR MARKET VALUE OF THE ITEM GIVEN BY THE CHARITY AND EXPLAIN TO TAXPAYERS THAT THEY CAN DEDUCT FROM THEIR TAXES AN AMOUNT EQUAL TO ONLY THE EXCESS CONTRIBUTION IF YOU GIVE A CHARITY 150 AND GET TO GO TO A DINNERDANCE WORTH 100 YOU ONLY GET CREDIT FOR 50 MR OWENS EXPLAINED HE NOTED THAT THIS HAS BEEN THE LAW FOR YEARS AND THE IRS EVEN ISSUED A NOTICE ABOUT THE LAW TO CHARITIES IN 1988 THE NEW REGULATION WHICH REQUIRES CHARITIES TO PROVIDE RECEIPTS SHOULD HELP ENSURE THAT THE LAW IS BEING MET MR OWENS SAID THE ONUS OF PROVIDING RECEIPTS FALLS SQUARELY ON CHARITIES NOT INDIVIDUAL TAXPAYERS CHARITIES THAT DON'T GIVE RECEIPTS WHERE REQUIRED CAN BE PENALIZED 10 A CONTRIBUTION UP TO 5000 PER FUNDRAISING EVENT CHARITIES MUST BE ABLE TO SUBSTANTIATE TO THE IRS THAT THEY HAVE A SYSTEM FOR PROVIDING THE RECEIPTS MR OWENS SAID THE RULE HAS A FEW EXCEPTIONS MR OWENS SAID NO RECEIPT IS REQUIRED FOR EXAMPLE WHEN A CHARITY GIVES A TOKEN ARTICLE LIKE A COFFEE MUG OR A PEN ANYTHING THAT COSTS 640 OR LESS IN 1994 THE RULE DOESN'T AFFECT RELIGIOUS ITEMS SUCH AS YOM KIPPUR TICKETS FROM A SYNAGOGUE THE OTHER NEW IRS RULE AFFECTS CONTRIBUTIONS OF 250 OR MORE IT ALSO REQUIRES CHARITIES TO PROVIDE RECEIPTS TO DONORS BUT IN THIS CASE INDIVIDUAL TAXPAYERS WILL BE REQUIRED TO PRODUCE THE RECEIPTS TO PROVE THAT DONATIONS HAVE BEEN MADE IF SOMEONE AUDITED BY THE IRS CAN'T SHOW A VALID RECEIPT THE DEDUCTION CAN BE DENIED MR OWENS SAID A CANCELED CHECK IS NO LONGER SUFFICIENT HE SAID IF SOMEONE PRODUCES A CANCELED CHECK MADE OUT TO A SCHOOL OR SOME OTHER INSTITUTION THAT'S SET UP AS A TAXEXEMPT ORGANIZATION THERE IS NO WAY TO TELL WHETHER IT WAS A CHARITABLE DONATION OR A PAYMENT FOR SERVICES RENDERED MR OWENS EXPLAINED THE IRS INTENDS TO MAIL A PUBLICATION EXPLAINING THE NEW RULES TO MORE THAN 5000 CHARITIES BY THE END OF THE MONTH 9312280082 931228 FOR STOCK MARKET ADVICE JUST CALL THE METEOROLOGIST FOR MANHATTAN BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON FORGET THE JANUARY EFFECT A PROFESSOR AT THE UNIVERSITY OF MASSACHUSETTS HAS COME UP WITH WHAT HE BELIEVES IS A BETTER INDICATOR OF WHEN THE STOCK MARKET WILL RISE OR FALL CHECK THE WEATHER ON WALL STREET SUSPECTING THAT THE MOOD OF TRADERS MAY BE INFLUENCED BY THE WEATHER IN MANHATTAN EDWARD M SAUNDERS JR A FINANCE PROFESSOR AND FORMER STOCKBROKER ANALYZED 63 YEARS OF WEATHER DATA AND COMPARED THE DATA WITH THE DAILY DOW JONES INDUSTRIAL AVERAGE ON SUNNY DAYS HE FOUND THE DOW WAS UP MORE THAN 54 OF THE TIME WHEN THE WEATHER OUTSIDE WAS OVERCAST OR RAINING THE DOW WAS DOWN 505 OF THE TIME THAT MAY NOT SOUND LIKE MUCH PROF SAUNDERS SAYS BUT EVEN SMALL INCREMENTS CAN BE STATISTICALLY SIGNIFICANT OVER SO MANY DAYS AND REGARDLESS OF WEATHER THE DOW JONES AVERAGE HAS FALLEN ONLY 485 OF THE TRADING SESSIONS IN THOSE 63 YEARS THE PROFESSOR ALSO CONTRASTED WEATHER REPORTS WITH DAILY INDEXES OF THE NEW YORK AND AMERICAN STOCK EXCHANGES BETWEEN 1962 AND 1989 AND FOUND AN EVEN STRONGER PATTERN ON SUNNY DAYS THE INDEXES WERE UP MORE THAN 57 OF THE TIME WHILE UNDER CLOUDY SKIES THE INDEXES WERE UP LESS THAN 50 OF THE TIME IT'S KIND OF CRAZY BUT IT'S REALLY PATHBREAKING WORK SAYS PROF SAUNDERS JOHN CAMPBELL AN ECONOMICS PROFESSOR AT PRINCETON UNIVERSITY AND AN EDITOR OF THE AMERICAN ECONOMIC REVIEW SAYS WHEN HE FIRST SAW PROF SAUNDERS'S ARTICLE HE WAS INCREDULOUS THAT THESE RESULTS COULD ACTUALLY BE RIGHT BUT PROF CAMPBELL BECAME CONVINCED AND THE STUDY WAS PUBLISHED IN THE REVIEW'S DECEMBER ISSUE PROF CAMPBELL SAID HE BELIEVES THE RESULTS FLY IN THE FACE OF ADVOCATES OF THE EFFICIENT MARKET THEORY WHO BELIEVE THAT ECONOMICS NOT PSYCHOLOGY MOVES THE STOCK MARKET HE CAUTIONED HOWEVER THAT THE MAGNITUDE OF THE EFFECT IS QUITE SMALL MOREOVER THE STUDY FOUND THAT SINCE 1982 THE WEATHER EFFECT HAS BEEN DIMINISHING PROF SAUNDERS ATTRIBUTES THE CHANGE TO THE INCREASING GLOBALIZATION OF MARKET TRADING AND THE ADVENT OF FUTURES TRADING IN CHICAGO THE MANHATTAN WEATHER EFFECT DOESN'T HAVE A PERFECT TRACK RECORD OF COURSE ON THE DAYS OF BOTH THE 1929 AND 1987 STOCKMARKET CRASHES THE WEATHER ON WALL STREET WAS PLEASANT 9312280081 931228 UKRAINE FUND EXCEEDS ITS GOAL FOR FUNDING CLOSES TO NEW INVESTORS BOSTON THE UKRAINE FUND A VENTURECAPITAL FUND THAT INVESTS IN EMERGING PRIVATE COMPANIES IN UKRAINE SAID IT CLOSED TO INVESTORS WITH 117 MILLION IN FUNDS SURPASSING ITS GOAL OF 10 MILLION INVESTORS INCLUDE THE EUROPEAN BANK FOR RECONSTRUCTION & DEVELOPMENT 35 MILLION INTERNATIONAL FINANCE CORP A MEMBER OF THE WORLD BANK GROUP 2 MILLION AND BANK OF BOSTON 1 MILLION THE FUND IS MANAGED BY CLAFLIN CAPITAL MANAGEMENT INC A VENTURECAPITAL FIRM IN BOSTON THE FUND SAID IT HAS INVESTED IN A KIOSK COMPANY A SAILMAKING COMPANY A FURNITURE COMPANY AND A TEADISTRIBUTION COMPANY 9312280080 931228 WHO'S NEWS CHUBB CORP CHUBB CORP WARREN NJ ROBERT P CRAWFORD JR 52 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF THIS INSURANCE HOLDING COMPANY EFFECTIVE SATURDAY MR CRAWFORD MOST RECENTLY WAS SENIOR VICE PRESIDENT AND MANAGING DIRECTOR OF THE CHUBB & SON INC UNIT WHERE HE WILL BE PRESIDENT SUCCEEDING RICHARD SMITH WHO WILL CONTINUE AS PRESIDENT OF THE PARENT COMPANY 9312280079 931228 BUSINESS BRIEF DRIVERHARRIS CO ACCORD ON PENSION BENEFITS SIGNED WITH FEDERAL AGENCY DRIVERHARRIS CO SAID IT SIGNED A FINAL AGREEMENT WITH THE PENSION BENEFIT GUARANTY CORP THAT SETTLES THE AGENCY'S CLAIM FOR EMPLOYER LIABILITY UNDER THREE DEFINED PENSIONBENEFIT PLANS THAT THE COMPANY TERMINATED IN 1985 DRIVERHARRIS EXPECTS TO RECORD A GAIN FROM THE SETTLEMENT OF ABOUT 300000 OR 20 CENTS A SHARE IN THE FOURTH QUARTER THE HARRISON NJ SPECIALTYALLOY WIRE AND CABLE PRODUCER HAD TAKEN A RESERVE IN 1985 THAT EXCEEDED THE FINAL SETTLEMENT THE SETTLEMENT IS IN THE FORM OF A 781000 NOTE DUE SEPT 30 2000 INTEREST ACCRUES AT 7 PER YEAR COMPOUNDED QUARTERLY PAYABLE AT MATURITY THE NOTE AND ACCRUED INTEREST MAY BE PREPAID AT THE COMPANY'S OPTION THE PBGC A FEDERAL AGENCY THAT KEEPS TRACK OF THE SOLVENCY OF PENSION FUNDS HAS THE RIGHT TO CONVERT ANY UNPAID PRINCIPAL AND ACCRUED INTEREST INTO COMMON STOCK OF DRIVERHARRIS AT A PRICE OF 7875 A SHARE AFTER SEPT 30 1996 9312280078 931228 TOYOTA MOTOR CORP AGAIN RAISES PRICES ON MODELS IN US TORRANCE CALIF TOYOTA MOTOR CORP RAISED PRICES ON MOST OF ITS MODELS IN THE US FOR THE THIRD TIME IN 1993 GIVING DETROIT'S BIG THREE EVEN MORE ROOM TO RAISE THEIR OWN PRICES TOYOTA BLAMED ITS LATEST PRICE INCREASES ON THE STRONG YEN WHICH DRIVES UP THE COST OF PRODUCTS MADE IN JAPAN AND SOLD IN THE US TOYOTA LIKE OTHER JAPANESE MANUFACTURERS IS STRUGGLING TO BOOST OVERSEAS EARNINGS TO OFFSET SEVERELY DEPRESSED PROFITS IN JAPAN TOYOTA'S LATEST ACTION ADDS ANOTHER 180 TO 670 TO THE BASE PRICES OF ITS BESTSELLING 1994 TOYOTA MODELS AND AS MUCH AS 1300 TO THE PRICE OF ITS LEXUS LUXURY CARS FOR DETROIT'S BIG THREE AUTO MAKERS TOYOTA'S MOVE IS A NEW YEAR'S GIFT THAT SHOULD ALLOW THEM TO CONTINUE TO INCREASE MARKET SHARE AND RAISE THEIR OWN PRICES EARLIER THIS MONTH GENERAL MOTORS CORP RAISED PRICES ON MOST OF ITS 1994 MODELS FORD MOTOR CO AND CHRYSLER CORP ALSO HAVE BOOSTED STICKER PRICES AND SCALED BACK DISCOUNTS IN RECENT MONTHS A 1994 TOYOTA CAMRY SEDAN FOR EXAMPLE NOW WILL START AT 16718 UP 280 FROM THE INTRODUCTORY 1994 PRICE ANNOUNCED IN SEPTEMBER THE NEW BASE CAMRY PRICE IS 1410 MORE THAN THE 15308 STARTING PRICE FOR A CAMRY AT THE END OF THE 1993 MODEL YEAR MOST CAMRYS SOLD IN THE US ARE MADE AT A FACTORY IN GEORGETOWN KY TOYOTA ADDED EVEN MORE TO THE PRICES OF VEHICLES MADE IN JAPAN A 1994 LEXUS LS400 SEDAN NOW WILL START AT 51200 UP 26 OR 1300 FROM ITS INTRODUCTORY 1994 PRICE LEXUS LS400 PRICES COULD RISE EVEN MORE WHEN A REDESIGNED VERSION OF THE CAR IS LAUNCHED IN MARCH 1994 A TOYOTA PREVIA MINIVAN MADE IN JAPAN NOW WILL START AT 22818 UP 670 FROM THE STARTING 1994 MODEL PRICE AND 3120 MORE THAN THE SAME VEHICLE AT THE END OF THE 1993 MODEL YEAR 9312280077 931228 WHO'S NEWS GRAND METROPOLITAN PLC GRAND METROPOLITAN PLC LONDON ANTHONY P FOGLIO WAS APPOINTED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE BRITISH FOOD AND DRINK COMPANY'S PADDINGTON CORP UNIT MR FOGLIO 47 YEARS OLD SUCCEEDS G WILLIAM SEAWRIGHT WHO LEFT THE COMPANY TO BECOME PRESIDENT AND CEO OF STANHOME INC A DIRECT SELLER OF HOUSEHOLD PRODUCTS MR FOGLIO WAS PREVIOUSLY SENIOR VICE PRESIDENT SALES FOR THE UNIT PADDINGTON CORP A DIVISION OF INTERNATIONAL DISTILLERS & VINTNERS NORTH AMERICA IMPORTS AND MARKETS DISTILLED SPIRITS INCLUDING J&B SCOTCH BAILEY'S ORIGINAL IRISH CREAM AND DI SARONNO AMARETTO 9312280076 931228 INTERNATIONAL JAPAN'S FACTORY PRODUCTION TOKYO PRODUCTION AT JAPAN'S FACTORIES AND MINES AFTER ADJUSTMENT FOR SEASONAL FACTORS ROSE 18 IN NOVEMBER FROM OCTOBER THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID THAT REBOUND WAS WEAKER THAN THE 26 RISE THAT MITI PREDICTED WOULD FOLLOW THE RECORD PLUNGE IN ADJUSTED PRODUCTION OF 55 FOR OCTOBER FROM THE PREVIOUS MONTH MITI SAID PRODUCTION IS LIKELY TO TAKE A SHARP DIVE IN DECEMBER FOLLOWED BY A STEADY INCREASE BEGINNING IN JANUARY 9312280075 931228 WHITE HOUSE RELEASES BOOK' COMPILED BY FORMER NOMINEE TO HEAD THE RTC BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION RELEASED WITHOUT FANFARE A LONG BOOK ON THE RESOLUTION TRUST CORP'S SHORTCOMINGS THAT WAS COMPILED BY A FORMER NOMINEE TO HEAD THE AGENCY THE MATERIALS WERE ASSEMBLED BY STANLEY TATE A FLORIDA REALESTATE DEVELOPER WHO WITHDREW AS A CANDIDATE TO HEAD THE RTC AT THE END OF LAST MONTH MR TATE SAID AT THE TIME THAT SENATE BANKING COMMITTEE CHAIRMAN DONALD RIEGLE D MICH HAD REFUSED TO ACT ON THE NOMINATION DENYING MR TATE THE CHANCE TO DEAL WITH SERIOUS RTC MISMANAGEMENT IN A CONFIRMATION HEARING OR AS RTC CHIEF WHEN MR TATE ANNOUNCED HIS WITHDRAWAL HE SAID THAT HE HAD PLANNED TO RELEASE A BOOK ON THE RTC BUT THAT THE TREASURY DEPARTMENT WANTED IT KEPT CONFIDENTIAL THE DEPARTMENT HAS SAID IT WANTED TO RESOLVE ANY PRIVACY QUESTIONS BEFORE MAKING THE MATERIALS PUBLIC THE TATE MATERIALS RAISED SOME ISSUES OF POOR MANAGEMENT OF THE RTC THE GOVERNMENT'S THRIFT CLEANUP AGENCY BUT THE SPECIFICS OF SOME OF THOSE ISSUES OR THE KINDS OF LAX RTC MANAGEMENT SUGGESTED BY THE MATERIALS AREN'T NEW AND THE MATERIALS HAVEN'T GENERATED MUCH MEDIA COVERAGE THEY WERE RELEASED THURSDAY JUST BEFORE THE LONG CHRISTMAS WEEKEND AMONG THE ALLEGATIONS IN THE TATE MATERIALS WERE THESE MANY OF THE RTC MANAGEMENT REPLIES TO REPORTS BY THE RTC INSPECTOR GENERAL OR THE CONGRESSIONAL GENERAL ACCOUNTING OFFICE REPORTS HAVE BEEN NONRESPONSIVE RTC TEAMS THAT SELL FAILEDTHRIFT ASSETS HAVE AUTHORITY TO DISPOSE OF 100 MILLION IN ASSETS AT A TIME WITHOUT APPROVAL OF THE AGENCY'S SENIOR MANAGEMENT MR TATE IMPLIED THAT AMOUNT IS TOO HIGH HE SAID THE RTC SOLD ONE LOAN BACK TO THE ORIGINAL BORROWER AND HE SAID THE BORROWER IN THAT CASE RAISED MONEY FOR THE PURCHASE FROM A GROUP THAT ALSO OWNED THE COMPANY THAT SERVED AS THE RTC'S FINANCIAL ADVISER FOR THE DEAL HE SAID THE MATTER RAISED SERIOUS QUESTIONS ABOUT WHETHER THE DEAL WAS OPEN AND ARM'SLENGTH THE RTC JOINED WITH A COMPANY TO SELL NONPERFORMING MORTGAGES UNDER A NEW SMALLINVESTOR PROGRAM EVEN THOUGH THE AGENCY'S INSPECTOR GENERAL HAD QUESTIONED THE FIRM'S ABILITY TO MANAGE CASH AND TWO RTC FIELD OFFICERS HAD GIVEN THE FIRM UNSATISFACTORY RATINGS THE RTC DIDN'T HAVE A SYSTEM TO ENSURE THAT SOURCES OF PERFORMANCE AND AUDIT INFORMATION ON POTENTIAL PARTNERS ARE PROPERLY CHECKED OUT MR TATE SAID THE TREASURY DEPARTMENT AND THE RTC HAD NO COMMENT ON THE TATE PAPERS 9312280074 931228 TII FILES FOR SECONDARY OFFERING COPIAGUE NEW YORK TII INDUSTRIES INC SAID HOLDERS OF SEVEN MILLION OF ITS COMMON SHARES INTEND TO SELL THEIR SHARES IN A SECONDARY OFFERING THROUGH UNDERWRITER LADENBERG THALMANN & CO THE MAKER OF SURGEPROTECTION AND OTHER ELECTRONIC DEVICES SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION OFFICERS AND DIRECTORS PLAN TO SELL ABOUT 535000 SHARES THE COMPANY SAID THE OFFERING WILL INCREASE SHARES OUTSTANDING TO 145 MILLION FROM 10 MILLION AND TII SAID IT WOULD REALIZE 9 MILLION FROM THE EXERCISE OF CERTAIN WARRANTS ASSOCIATED WITH THE SALE IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE TII CLOSED AT 350 A SHARE DOWN 375 CENTS 9312280073 931228 ORANGE & ROCKLAND ESTIMATES COST OF PROBE AT 6 MILLION FOR YEAR PEARL RIVER NY ORANGE & ROCKLAND UTILITIES INC ESTIMATED COSTS OF ABOUT 6 MILLION THIS YEAR IN CONNECTION WITH INVESTIGATIONS BEGUN IN AUGUST WHEN A FORMER OFFICIAL WAS ARRESTED IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE UTILITY SAID THAT 11 MILLION OF THOSE COSTS WAS REFLECTED IN THE COMPANY'S THIRDQUARTER RESULTS ORANGE & ROCKLAND SAID THE COSTS MAY BE OFFSET PARTLY BY EFFORTS TO ACHIEVE SAVINGS IN ITS OPERATIONS IT SAID NONE OF THE INVESTIGATIVE COSTS WILL BE PASSED ON TO RATEPAYERS THE ELECTRIC UTILITY SINCE AUGUST HAS BEEN CONDUCTING AN INVESTIGATION INTO BRIBERY AND ILLEGAL CAMPAIGN CONTRIBUTIONS INVOLVING A FORMER EXECUTIVE WHO LATER PLEADED GUILTY TO GRAND LARCENY BRIBE RECEIVING AND ILLEGAL CAMPAIGN CONTRIBUTIONS THIS MONTH THE NEW YORK PUBLIC SERVICE COMMISSION ISSUED AN ORDER CONTINUING ORANGE & ROCKLAND'S EXISTING ELECTRIC RATEMAKING MECHANISMS THROUGH JUNE 30 IN CONNECTION WITH THE COMPANY'S CONTINUING RATE CASE THE COMPANY HAS SAID THE ANALYSIS OF ITS INTERNAL INVESTIGATION WILL BE AVAILABLE BY MAY 31 AND PROPOSED AN ADDED SIXMONTH EXTENSION OF CURRENT RATEMAKING MECHANISMS UNTIL THE END OF NEXT YEAR 9312280072 931228 CORRECTIONS & AMPLIFICATIONS ALLIED WASTE INDUSTRIES INC HAD REVENUE OF 95 MILLION FOR THE FOURTH QUARTER OF 1992 AND EARNINGS OF 355000 OR THREE CENTS A SHARE BASED ON INFORMATION SUPPLIED BY THE COMPANY AN ARTICLE THURSDAY INCORRECTLY SAID ALLIED WASTE HAD 1992 FOURTHQUARTER EARNINGS OF 95 MILLION 9312280071 931228 LETTERS TO THE EDITOR FEED AND RUN IS NOT US POLICY YOUR DEC 6 EDITORIAL SOMALIA IN RETROSPECT NOTES THAT WHEN THE NAVY SEALS ARRIVED IN SOMALIA A YEAR AGO THE US STARTED WITH AN ORIGINAL GOAL TO FEED STARVING SOMALIS YOU THEN PROCEED WITH WHAT NOW HAS BECOME AN OFTENHEARD COMPLAINT THAT OUR POLICY SUBSEQUENTLY LOST FOCUS IT IS AN UNJUSTIFIED COMPLAINT BASED AS IT IS ON A FAILURE TO DISTINGUISH BETWEEN SYMPTOMS AND UNDERLYING CAUSES IN LATE 1991 WHILE SERVING AS ASSISTANT SECRETARY OF STATE FOR HUMAN RIGHTS AND HUMANITARIAN AFFAIRS I BECAME ONE OF THE EARLY SUPPORTERS OF THE PROPOSAL THAT THE UNITED NATIONS SECURITY COUNCIL BE ASKED TO ENGAGE IN HUMANITARIAN INTERVENTION IN SOMALIA BY PROVIDING MILITARY PROTECTION FOR FOOD DELIVERY SO AS TO PREVENT MASS STARVATION SUCH PROTECTION IS OF COURSE NEEDED ONLY WHERE ARMED FORCE HAS BEEN USED TO INTERFERE WITH THE DELIVERY OF FOOD ONE YEAR AND MORE THAN 300000 DEATHS LATER US TROOPS ARRIVED IN SOMALIA SOME OF SOMALIA'S FOOD PROBLEMS WERE CAUSED BY DROUGHT BUT THAT WAS NOT WHY PRESIDENT BUSH SENT 28000 COMBATREADY TROOPS THE VERY REASON FOR OUR MILITARY EFFORT TO FEED STARVING SOMALIA WAS THAT LAW AND ORDER IN THAT COUNTRY HAD BROKEN DOWN TOTALLY ARMED THUGS HAD DRIVEN THE FARMERS OFF THEIR LAND AS A RESULT OF SUCH LAWLESSNESS THE PRODUCTION AND DISTRIBUTION OF FOOD HAD BEEN BADLY DISRUPTED WE MUST ASSUME THAT THE US DID NOT SEND TROOPS TO SOMALIA MERELY TO FEED THE SOMALIS A FEW MONTHS AND THEN LET THEM STARVE TO DEATH LATER FROM THE VERY BEGINNING THE ONLY SENSIBLE FOCUS OF THE EXPEDITION WAS THE LONGTERM REMOVAL OF THE ARMED THREAT TO SOMALI FOOD PRODUCTION AND DISTRIBUTION THAT THREAT HAS BEEN REMOVED FOR THE TIME BEING BUT THE PRESIDENT HAS MADE IT CLEAR THAT WE CANNOT REMAIN IN SOMALIA INDEFINITELY THAT WE ARE PULLING OUT BY NEXT MARCH 31 IT WOULD BE HIGHLY IRRESPONSIBLE FOR US TO LEAVE WITHOUT HAVING ENGAGED IN A SERIOUS EFFORT TO PREVENT A RETURN TO MASS STARVATION THAT IS PRECISELY WHAT IS BEING UNDERTAKEN NOW GIVING THE SOMALIS TIME AND A CHANCE TO PUT THEIR HOUSE IN ORDER THE FOCUS TODAY IS WHAT IT SHOULD LOGICALLY HAVE BEEN ON DEC 9 1992 TO HELP REDUCE THE LAWLESSNESS THAT BROUGHT ABOUT MASS STARVATION 9312280070 931228 INTERNATIONAL WORLD WIRE COMPILED BY JEFF SUTHERLAND THOUSANDS OF PEOPLE IN NORTHWEST EUROPE DISPLACED DURING CHRISTMAS BECAUSE OF THE WORST FLOODS IN DECADES RETURNED YESTERDAY TO HOMES AWASH IN MUD AS OFFICIALS BEGAN TO TALLY THE DAMAGE RIVERS SWOLLEN BY TORRENTIAL RAIN OVER THE PAST WEEK WERE REPORTED RETREATING IN THE WORSTAFFECTED AREAS OF SOUTHEASTERN NETHERLANDS EASTERN FRANCE AND LOWLYING PARTS OF GERMANY AND BELGIUM AT LEAST SEVEN PEOPLE WERE KILLED IN THE REGION BECAUSE OF THE HEAVY RAIN AND FLOODING FRENCH INSURERS ARE LIKELY TO BE ESPECIALLY BURDENED WITH PROPERTY CLAIMS THIS YEAR BECAUSE OF THE FLOODS COMPOUNDING HEAVY COSTS ALREADY INCURRED BY STORMS IN SEPTEMBER AND OCTOBER THE FEDERATION FRANCAISE DES SOCIETES D'ASSURANCE SAID THE FALL FLOODING IS SEEN COSTING INSURERS BETWEEN 260 MILLION AND 347 MILLION IN PAYOUTS THE GROUP SAID IT IS TOO EARLY TO GAUGE THE COST OF DECEMBER'S DAMAGE THE DUTCH GOVERNMENT DECLARED THE FLOODS A NATIONAL DISASTER GERMAN OFFICIALS MEANWHILE ESTIMATED FLOOD DAMAGE IN FOUR WESTERN GERMAN STATES AT MORE THAN 590 MILLION INTERNATIONAL AIRLINES PROTESTED FEES TO BE CHARGED FOR USING JAPAN'S 10 BILLION KANSAI INTERNATIONAL AIRPORT THE AIRPORT UNDER CONSTRUCTION NEAR OSAKA IS SCHEDULED TO OPEN IN SEPTEMBER THE CHAIRMAN OF THE BOARD OF AIRLINE REPRESENTATIVES IN JAPAN SAID THE AIRPORT PLANS TO CHARGE AIRLINES 2220 PER CHECKIN COUNTER COMPARED WITH 517 AT TOKYO'S NARITA THE WORLD'S MOST EXPENSIVE AIRPORT PROPOSED LANDING CHARGES FOR A BOEING 747400 WOULD BE 9404 COMPARED WITH 8572 AT NARITA ACCORDING TO ESTIMATES BY JAPAN AIRLINES A MEMBER OF THE GROUP THE VENEZUELAN GOVERNMENT PLANS TO MOVE AHEAD WITH THE SECOND STAGE IN THE IMPLEMENTATION OF A VALUEADDED TAX ON JAN 1 BUT IN A MODIFIED FORM A GOVERNMENT OFFICIAL SAID LUXURY ITEMS SUCH AS CAVIAR SALMON AND LUXURY PLANES WILL NOW BE TAXED AT 15 WHILE CERTAIN BASIC ITEMS SUCH AS SUGAR AND SALT WILL BE EXEMPT THE BULK OF ITEMS WILL BE TAXED AT 10 AS ORIGINALLY PLANNED THE CHANGES WERE SUGGESTED BY ADVISERS TO PRESIDENTELECT RAFAEL CALDERA WHO HAD EXPRESSED OPPOSITION TO VAT IN THE ELECTION CAMPAIGN JAPAN'S FINANCE MINISTRY LET SEVERAL REGIONAL BANKS INTO THE TRUST BUSINESS EXTENDING A TREND OF LIBERALIZATION OF THE COUNTRY'S FINANCIAL BUSINESSES EARLIER THIS YEAR THE MINISTRY ALLOWED LEADING BROKERAGE HOUSES AND THE BANK OF TOKYO INTO TRUST BANKING SEVERAL LONGTERM CREDIT AND TRUST BANKS TO EXTEND THEIR SECURITIES DEALINGS AND SEVERAL COMMERCIAL BANKS INTO THE INVESTMENT TRUST BUSINESS PASSAGE NEARLY TWO YEARS AGO OF LEGISLATION ERODING BARRIERS AMONG THE SECURITIES AND BANKING BUSINESSES HAS OPENED UP THE FINANCIAL BUSINESS ALTHOUGH REGULATORS ONLY RECENTLY STARTED AWARDING LICENSES THE CHINESE GOVERNMENT PLANS TO SPEND ABOUT 35 MILLION NEXT YEAR ON AIRPORT SAFETY IMPROVEMENTS AS PART OF A CAMPAIGN TO REDUCE THE CRASHES AND HIJACKINGS PLAGUING CHINA'S CIVIL AVIATION STATERUN XINHUA NEWS AGENCY SAID AN OFFICIAL OF THE CIVIL AVIATION ADMINISTRATION OF CHINA ATTRIBUTED A RECENT SPATE OF AIR DISASTERS TO POOR PERFORMANCE BY FLIGHT CREWS AND A LACK OF ADEQUATE SAFETY AND MAINTENANCE ADMINISTRATION AT MANY AIRLINES IN 1992 THERE WERE FIVE CRASHES IN CHINA THAT KILLED 310 PEOPLE THIS YEAR'S DEATH TOLL IS AT 76 IN FIVE CRASHES MERGERS AND ACQUISITIONS INVOLVING JAPANESE COMPANIES WERE DOWN ACROSS THE BOARD IN 1993 COMPARED WITH A YEAR EARLIER ACCORDING TO DAIWA SECURITIES CO MERGERS AND ACQUISITIONS BETWEEN JAPANESE COMPANIES FELL 84 TO 237 THOSE IN WHICH JAPANESE COMPANIES ACQUIRED FOREIGN COMPANIES PLUNGED 34 TO 131 AND THOSE IN WHICH FOREIGN COMPANIES ACQUIRED JAPANESE COMPANIES SKIDDED 14 TO 31 THE SECTORS IN WHICH THE MOST JAPANESEJAPANESE MERGERS OCCURRED WERE SOFTWARE BANKING AND FINANCING DISTRIBUTION AND PHARMACEUTICALS DAIWA SAID AS FOR ACQUISITIONS OF FOREIGN COMPANIES BY JAPANESE COMPANIES 40 WERE OF NORTH AMERICAN COMPANIES 25 WERE OF ASIAN COMPANIES AND 23 WERE OF EUROPEAN COMPANIES ON ACQUISITIONS OF JAPANESE COMPANIES BY FOREIGN COMPANIES 62 OF THE BUYERS WERE NORTH AMERICAN 19 WERE EUROPEAN AND 16 WERE ASIAN A POLL COMMISSIONED BY BRITAIN'S OBSERVER NEWSPAPER FOUND 56 OF RESPONDENTS WANT TO KEEP QUEEN ELIZABETH II AS HEAD OF STATE WHILE 28 FAVOR AN ELECTED PRESIDENT AND 13 WANT THE PRIME MINISTER TO DOUBLE AS HEAD OF STATE BUT 73 SAY THE PUBLIC SHOULDN'T PAY FOR THE MONARCHY 9312280069 931228 WORLD MARKETS TOKYO SHARE PRICES PLUNGE 19 ON PESSIMISM OVER PLAN FOR ECONOMY FRANKFURT STOCKS SOAR A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS DROPPED 19 IN LIGHT TRADING AMID DISAPPOINTMENT OVER GOVERNMENT EFFORTS TO LIFT JAPAN'S ECONOMY OUT OF A GRINDING DOWNTURN FRANKFURT STOCK PRICES CONTINUED TO RISE SETTING A HIGH FOR THE FIFTH CONSECUTIVE TRADING DAY THE LONDON MARKET WAS CLOSED FOR A HOLIDAY WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11081 DOWN 022 REFLECTING LOWER ASIA/PACIFIC MARKETS AND HIGHER AMERICAN AND EUROPEAN MARKETS BIOTECHNOLOGY STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 7935 UP 177 OR 228 WITH AMGEN OF THE US POSTING A 38 GAIN IN ITS LOCAL CURRENCY TOYS STOCKS TRAILED AT 9071 DOWN 197 OR 21 WITH ELECTRONIC ARTS OF THE US SLIDING 48 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH PLUNGED 30463 POINTS OR 17 ON FRIDAY FELL 32123 TO 1681988 ON TUESDAY THE NIKKEI CLIMBED 25433 TO END THE MORNING SESSION AT 1707421 MONDAY'S FIRSTSECTION VOLUME WAS LOW AHEAD OF THE NEW YEAR HOLIDAY AN ESTIMATED 190 MILLION SHARES CHANGED HANDS DOWN FROM 20664 MILLION FRIDAY RETREATING ISSUES TROUNCED ADVANCING ISSUES 842149 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH LOST 2167 POINTS FRIDAY SHED 2132 OR 15 TO 140738 STOCK BROKERS BLAMED THE DECLINE ON INVESTOR DISAPPOINTMENT OVER A SPEECH BY PRIME MINISTER MORIHIRO HOSOKAWA AFTER THE CLOSE OF TRADING FRIDAY IN THE NATIONALLY TELEVISED ADDRESS MR HOSOKAWA ACKNOWLEDGED JAPAN'S ECONOMIC TROUBLES BUT HIS SOCALLED SIXPOINT PLAN TO BOOST THE ECONOMY WAS VIEWED IN THE MARKET AS LITTLE MORE THAN A REPACKAGING OF PROMISES SUCH AS TAX REFORM AND DEREGULATION THAT INVESTORS HEARD MONTHS AGO TRADERS SAID THE SELL ORDERS HITTING THE MARKET WEREN'T HEAVY STILL THEY CAUSED DRAMATIC DECLINES BECAUSE BUYERS JUST DON'T EXIST IN THE MARKET RIGHT NOW ACCORDING TO HIDEO SUGAI AN ANALYST AT YAMAICHI SECURITIES SHARE PRICES DID MANAGE TO END ABOVE THEIR INTRADAY LOWS THANKS TO AFTERNOON BARGAINHUNTING ADDING TO THE GLOOM IN TOKYO YESTERDAY WAS THE RELEASE OF STATISTICS SHOWING JAPAN'S ECONOMIC SLUMP IS FAR FROM OVER THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID THAT DURING NOVEMBER SALES AT JAPAN'S TOP RETAILERS DECLINED 69 FROM A YEAR EARLIER MARKING THE 18TH CONSECUTIVE MONTH OF DECLINES THE MINISTRY ALSO SAID JAPANESE INDUSTRIAL OUTPUT FOR 1993 WOULD LIKELY FALL 63 THE THIRD CONSECUTIVE YEAR OF DECLINES IN FRANKFURT THE DAX 30STOCK INDEX ROSE 3114 POINTS OR 14 TO 225398 PART OF THE BOOST WAS ATTRIBUTED TO INVESTORS' COVERING SHORT POSITIONS IN STOCK OPTIONS BY BUYING THE UNDERLYING SHARES WHILE MANY MARKET PARTICIPANTS WERE ABSENT BECAUSE OF THE HOLIDAYS GERMAN FUND MANAGERS WERE SEEN DRIVING THE CURRENT RALLY BY WINDOWDRESSING THEIR YEAREND BALANCE SHEETS OTHER MARKET WATCHERS SAID PRICES WERE DRIVEN HIGHER BY A LACK OF WILLING SELLERS PARIS STOCKS SOARED 11 TO ANOTHER RECORD CLOSE YESTERDAY MARKED THE BEGINNING OF A NEW MONTH FOR THE TRADING ACCOUNT AND PLAYERS RUSHED IN TO TAKE UP FRESH POSITIONS ALSO PARTICIPANTS REMAIN BULLISH FOR FURTHER INTEREST RATE CUTS IN FRANCE AND GERMANY EARLY IN 1994 STRONG SHOWINGS BY FRENCH BONDS THE FRANC AND THE FRANKFURT STOCK MARKET ALSO HELPED THE PARIS BOURSE OTHER EUROPEAN MARKETS WERE MIXED OR MARGINALLY HIGHER IN THIN HOLIDAY TRADING MARKETS IN BELGIUM AND IRELAND WERE CLOSED MANY ASIAN MARKETS SURGED SINGAPORE STOCKS JUMPED 22 TO A THIRD CONSECUTIVE HIGH WITH BUYING LED BY INDIVIDUAL INVESTORS THE TAIPEI MARKET LEAPED 32 TO A TWOYEAR HIGH IN BRISK TRADING BOOSTED BY BUYING OF LOCAL INSTITUTIONS AND OPTIMISTIC FORECASTS BY THE CHAIRMAN OF TAIWAN'S SECURITIES AND EXCHANGE COMMISSION STOCKS IN MANILA SHOT UP 58 TO POST THEIR LARGEST SINGLEDAY GAIN EVER IN BRISK TRADING THE BOURSE BROKE ITS PREVIOUS RECORD FOR THE SEVENTH STRAIGHT DAY AS IT CONTINUED TO BE BUOYED BY FOREIGN AND LOCAL BUYING IN ANTICIPATION OF A PICKUP IN THE PHILIPPINE ECONOMY IN 1994 SEOUL SHARE PRICES SURGED 14 IN A DAY OF WILD TRADING SWINGS STOCKS SURGED INITIALLY ON OPTIMISM ABOUT THE MARKET'S PROSPECTS FOR THE NEW YEAR BUT SOME OF THOSE GAINS WERE TAKEN AWAY IN THE AFTERNOON ON A STORM OF SELLING AFTER AN ANNOUNCEMENT BY DIRECTORS OF A MARKETSTABILIZATION FUND THAT IT WOULD SELL ITS STOCK BY THE END OF JANUARY HONG KONG SYDNEY AND WELLINGTON MARKETS WERE CLOSED FOR THE HOLIDAY 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 9312280068 931228 LONG HAUL TRUCKING FIRMS FIND IT IS A STRUGGLE TO HIRE AND RETAIN DRIVERS WEEKS AWAY FROM HOME HEAVY WORK LOW PAY MAKE THE JOB UNPOPULAR DELAYS HIT SOME SHIPPERS BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL LOUISVILLE KY A COUPLE OF HOURS BEFORE DAWN BRIAN ETCHISON APPROACHES THE FRONTDESK CLERK IN THE RAMADA INN LOBBY DO YOU LIKE WHAT YOU DO HERE HE ASKS WOULD YOU LIKE DRIVING A TRUCK MR ETCHISON'S JOB IS TO RECRUIT LONGHAUL DRIVERS FOR A TRUCKING COMPANY AFTER THE HOTEL CLERK AGREES TO CONSIDER THE OFFER MR ETCHISON AND HIS ASSISTANT KEITH BAILEY DRIVE A RENTAL CAR THROUGH THE DARK DESERTED STREETS OF NEARBY NEW ALBANY IND STOPPING AT GRANNY'S RESTAURANT THEY TRY TO RECRUIT THE WAITRESS WHO DECLINES TO WORK FAR FROM HER CHILD AT HOME THE ATTENDANT AT AN AMOCO GAS STATION IS INTERESTED BUT UNDER AGE UNDETERRED MR ETCHISON LEAVES BROCHURES FOR HIS EMPLOYER CRST INC AT A SUPERMARKET CONVENIENCE STORE EMPLOYMENT OFFICE AND SALVATION ARMY THRIFT SHOP YOU GET UP EARLY AND WORK HARD THE DRIVERDEVELOPMENT MANAGER SAYS IF YOU DON'T DO THESE THINGS YOU WON'T HAVE A GOOD CATCH THE BACK STREETS OF TOWNS LARGE AND SMALL HAVE BECOME THE LATEST RECRUITING GROUND FOR DRIVERS TO OPERATE THE NATION'S GROWING FLEET OF OVERTHEROAD TRUCKS WITH THE DEMAND FOR TRUCK DRIVERS EXCEEDING THE SUPPLY TRUCKING COMPANIES ARE STRUGGLING WITH HIGHER COSTS LOST REVENUE SERVICE DISRUPTIONS AND ANNUAL DRIVER TURNOVER RATES OF 100 OR MORE IT IS THE FIRST MAJOR WIDESPREAD LABOR SHORTAGE SINCE THE 1980S SAYS ALLEN SINAI CHIEF ECONOMIST AT LEHMAN BROTHERS INC IN NEW YORK AND IT BODES BIG CHANGES IN FREIGHT TRANSPORTATION BY CUTTING COSTS AND IMPROVING SERVICE LONGHAUL NONUNION TRUCKING COMPANIES SUCH AS CRST HAVE WON A GROWING SHARE OF THE NATION'S HIGHVALUE FREIGHT AND HELPED CUT ITS TOTAL TRANSPORT BILL DURING THE PAST DECADE BUT THE DRIVER SHORTAGE HAS LEFT FREIGHT PILING UP AT LOADING DOCKS IT ALSO IS FORCING TRUCKING COMPANIES TO THROTTLE DOWN EXPANSION PLANS RAISE FREIGHT RATES AND TURN MORE OF THEIR LONGHAUL FREIGHT OVER TO THEIR ARCHRIVALS THE RAILROADS OVER THE NEXT 10 YEARS MY BIGGEST CONCERN ISN'T THE MARKETPLACE BUT HOW ARE WE GOING TO RECRUIT TRAIN AND RETAIN DRIVERS SAYS JOHN SMITH CHIEF EXECUTIVE OF CRST'S PARENT COMPANY CRST INTERNATIONAL INC OF CEDAR RAPIDS IOWA HE CALLS THE SUPPLY OF DRIVERS THE ACHILLES' HEEL OF THE TRUCKING INDUSTRY CRST HAS HAD TO IDLE 30 RIGS AND CANCEL AN ORDER FOR 100 NEW TRUCKS BECAUSE IT COULDN'T FIND DRIVERS EVEN THOUGH ITS RECRUITING DEPARTMENT HAS GROWN LARGER THAN ITS FREIGHT SALES FORCE OTHERS CALL THE SCRAMBLE FOR DRIVERS UNSURPRISING DRIVERS ARE OVERWORKED UNDERPAID AND REQUIRED TO LOAD AND UNLOAD TREMENDOUS AMOUNTS OF FREIGHT SAYS GERALD DONALDSON WASHINGTON COCHAIRMAN OF CITIZENS FOR RELIABLE AND SAFE HIGHWAYS PEOPLE WHO WOULD HAVE AT ONE TIME CONSIDERED TRUCK DRIVING AS A CAREER ARE LOOKING ELSEWHERE FOR OCCUPATIONS THAT ARE LESS DEMANDING HAVE A REASONABLE WORKWEEK EVENINGS WITH THEIR FAMILIES AND THE ABILITY TO MAKE A PREDICTABLE PAYCHECK TRUCKING COMPANIES ARE BEING HIT WITH A WAVE OF DEFECTIONS AND RESIGNATIONS JOHN ROSE RECENTLY QUIT HIS JOB AT ROLAND TRANSPORT INC OF ROLAND IOWA TO DRIVE A DUMP TRUCK AT A LOCAL QUARRY ALTHOUGH HE MADE 32000 AT ROLAND IN 1992 HE CALCULATES THAT IF HE ADDED UP ALL THE HOURS HE WAS IN THE TRUCK EITHER DRIVING SLEEPING OR WAITING AT LOADING DOCKS I WAS MAKING LESS THAN MINIMUM WAGE HE SAYS IT JUST WASN'T WORTH THE STRESS AND ABUSE AT ONE WAREHOUSE HE RECALLS TRUCK DRIVERS WEREN'T ALLOWED TO USE THE TELEPHONE OR RESTROOMS THEY TREAT TRUCK DRIVERS LIKE WE'RE SOME KIND OF DISEASED ANIMAL HE SAYS IT'S NOT RIGHT FEWER PEOPLE TOO SEEM WILLING TO SPEND WEEKS IN A TRUCK WARD WRIGHT QUIT DRIVING FOR CRST LAST OCTOBER AFTER SIX WEEKS ON THE ROAD MY WIFE WAS SHEDDING TEARS ON THE PHONE AND MY DAUGHTERS SAID COME HOME DAD' IT WEIGHS ON YOU SAYS MR WRIGHT WHO IS LOOKING FOR A LOCAL JOB THE ERRATIC LIFESTYLE ALSO FRUSTRATES DRIVERS I HAD NO CONTROL OVER ANYTHING SAYS JAMES ODELL WHO RECENTLY QUIT HIS LONGHAUL JOB AT USA TRUCK INC BASED IN VAN BUREN ARK AFTER HIS DISPATCHER FAILED TO ROUTE HIM HOME TO HOUSTON IN TIME FOR A VACATION TRIP WITH HIS DAUGHTERS IT WAS MURDERING MY PERSONAL LIFE I DIDN'T HAVE A CHANCE TO BE A FATHER MR ODELL SAYS WHAT CAUSED TRUCK DRIVERS' WORK LIVES TO DETERIORATE TRUCKING EXECUTIVES SAY IS COSTCUTTING FORCED BY INTENSE COMPETITION AFTER DEREGULATION OPENED TRUCK ROUTES TO NEW ENTRANTS IN 1980 CARRIERS TURNED TO CHEAPER NONUNION DRIVERS AND EMPLOYED NOFRILLS TRUCKS EXCESS CAPACITY AND CONSTANT PRESSURE ON RATES ALSO SPURRED THE COMPANIES TO SQUEEZE MORE OUT OF THEIR EQUIPMENT AND EMPLOYEES BY KEEPING THEM OUT LONGER PREDEREGULATION COMPANIES HAD VERY PRECISE DEFINED LANES AND DRIVERS GOT INTO A PATTERN THAT WAS REGULAR AND REDUNDANT SAYS STEPHEN HROBUCHAK JR PRESIDENT OF TRANSCONTINENTAL REFRIGERATED LINES INC OF PITTSTON PA AFTER DEREGULATION THE COMPANIES GOT BETTER TRUCK UTILIZATION BUT DRIVERS FOUND THEMSELVES GOING ANYWHERE AND ON ANY DAY OF THE WEEK THE PROBLEMS ARE LIKELY TO GET WORSE THE SUPPLY OF 21 TO 29YEAROLDS THE PRIME AGE GROUP FOR TRUCK DRIVERS IS DWINDLING NEW FEDERAL LICENSING AND DRUGTESTING REQUIREMENTS REDUCED THE SUPPLY OF DRIVERS BY ABOUT 5 ACCORDING TO THE AMERICAN TRUCKING ASSOCIATIONS AND SINCE THE GOVERNMENT RESTRICTED FEDERALLY GUARANTEED LOANS TO POTENTIAL DRIVERS A FEW YEARS AGO THE INFLOW OF STUDENTS FROM COMMERCIAL DRIVING SCHOOLS HAS BEEN HALVED THE DRIVER SHORTAGE BECAME ACUTE WHEN THE FREIGHT MARKET BEGAN HEATING UP LAST SUMMER THE ECONOMY IS STRONGER AND THE INITIAL POINT OF IMPACT IS IN TRADE AND DISTRIBUTION WHERE TRUCKING IS VERY IMPORTANT SAYS LEHMAN'S MR SINAI ANOTHER TEST MAY COME THIS SPRING WHEN DRIVERS CAN GET CONSTRUCTION JOBS CLOSER TO HOME TYPICALLY COMPANIES THAT HAUL LESSTHANTRUCKLOAD SHIPMENTS HAVE FEW PROBLEMS HIRING DRIVERS PARTLY BECAUSE THEIR EMPLOYEES CAN GET HOME EVERY NIGHT SHIPPERS HAVE BEGUN TO FEEL THE SHORTAGE OF LONGHAUL DRIVERS QUAKER OATS CO IN CHICAGO HAS HAD CEREAL SHIPMENTS SIT AN EXTRA TWO OR THREE DAYS AND HAS PAID A 10 PREMIUM TO MOVE SOME LOADS GEORGIAPACIFIC CORP BASED IN ATLANTA HAS HAD DELAYS OF UP TO SEVERAL WEEKS FOR PLYWOOD AND PARTICLEBOARD LOADS SOME TRUCKING COMPANIES RECENTLY RAISED FREIGHT RATES ABOUT 4 REFLECTING HIGHER LABOR AND FUEL COSTS AND THEY PLAN FURTHER INCREASES IN RATES AND DRIVER WAGES IN 1994 DISMAYING SHIPPERS ACCUSTOMED TO RATE REDUCTIONS CARRIERS ARE FEELING THE PINCH FROM HAVING TO PAY DRIVERS TO BRING THEM INTO THE SYSTEM SAYS RICHARD HANSON DIRECTOR OF TRANSPORTATION OPERATIONS AT PHILIP MORRIS COS' KRAFT GENERAL FOODS DIVISION IN NORTHFIELD ILL AT THE SAME TIME WE HAVE TREMENDOUS PRESSURE TO REDUCE COSTS IN OUR SYSTEM CARRIERS ARE ALSO RESTRUCTURING THEIR TRUCKING OPERATIONS TO IMPROVE DRIVERS' LIVES AND REDUCE TURNOVER MS CARRIERS INC OF MEMPHIS TENN RECENTLY ESTABLISHED FOUR REGIONAL HUBS AND SHORTER RUNS TO ENABLE ABOUT 25 OF ITS DRIVERS TO GET HOME MORE OFTEN JB HUNT TRANSPORT SERVICES INC A BIG LOWELL ARK COMPANY IS PUTTING MORE OF ITS LONGHAUL FREIGHT SHIPMENTS ON RAILROADS THE COMPANY SAYS ANNUAL TURNOVER AMONG ITS DRIVERS WHO PICK UP AND DELIVER AT RAIL YARDS AND GET HOME EVENINGS HAS DROPPED TO 20 COMPARED WITH 90 FOR ITS OVERTHEROAD DRIVERS NEVERTHELESS A DRIVER SHORTAGE DURING THE FALL SHIPPING SURGE IDLED ABOUT 300 OF HUNT'S TRUCKS AND REDUCED ITS THIRDQUARTER REVENUE SOME 6 WHEN TRYING TO GET THE DRIVER LIST FROM A DEFUNCT MIDWEST CARRIER LAST FALL DON LACY A CRST VICE PRESIDENT WAS TOLD THAT HE WAS THE FIFTH TRUCKINGCOMPANY EXECUTIVE TO CALL SO MANY TRUCKING RECRUITERS ATTENDED A JOB FAIR IN OKLAHOMA LAST SUMMER THAT MARK DEERE CRST'S DIRECTOR OF DRIVER DEVELOPMENT SAYS WE SPENT ALL OUR TIME TALKING TO EACH OTHER INCREASINGLY TRUCK COMPANIES ARE COMPETING FOR DRIVERS BY OFFERING 1000 SIGNON BONUSES LIBERAL VACATION POLICIES AND FANCIER MORE COMFORTABLE TRUCKS CRST HAS EXPANDED ITS RECRUITING EFFORTS TO TEXAS OKLAHOMA AND WEST VIRGINIA WHILE TARGETING AREAS SUCH AS MICHIGAN AND CALIFORNIA HIT BY FACTORY CLOSINGS BUT NOT EVERYONE WHO HAS BEEN LAID OFF IS A GOOD CANDIDATE THE GUY IN HIS MID TO LATE40S WHO SPENT 20 YEARS IN AN AUTO PLANT WENT TO WORK EVERY DAY AT THE SAME TIME AND BOWLED EVERY TUESDAY NIGHT DOESN'T NECESSARILY ADAPT WELL TO THIS INDUSTRY MR LACY SAYS AND CRST IS RELYING MORE ON RECRUITERS SUCH AS MESSRS ETCHISON AND BAILEY WHO COMB PLACES SUCH AS NEW ALBANY IND FOR POTENTIAL DRIVERS THE MORE MODEST THE HOUSES THE MORE HOPEFUL MR ETCHISON IS OUR SALARY CAN BE VERY ATTRACTIVE IN THIS TYPE OF NEIGHBORHOOD HE SAYS INEXPERIENCED DRIVERS WHO GO TO WORK FOR CRST CAN EARN 20000 TO 25000 IN THEIR FIRST YEAR AND 32000 TO 39000 IN THEIR SECOND AS THE SUN COMES UP OVER THE OHIO VALLEY THE TWO MEN DRIVE BACK TO THE RAMADA INN IN LOUISVILLE THERE THEY CONDUCT A CAREER MEETING FOR 17 MEN AND WOMEN WHO RESPONDED TO A NEWSPAPER AD PROMISING FREE TRAINING AND A GUARANTEED JOB MEANWHILE TRUCKING COMPANIES ARE TRYING TO EXPAND THE DRIVER POOL WHICH HAS LARGELY CONSISTED OF YOUNG WHITE MALES TO INCLUDE RETIREES MINORITIES AND WOMEN SCHNEIDER NATIONAL INC OF GREEN BAY WIS IS SENDING RECRUITERS TO US MILITARY BASES IN EUROPE AND CRST RECENTLY BEGAN TO PAY FOR TRUCK DRIVERS' TRAINING SOME CARRIERS HAVE LOBBIED THE FEDERAL GOVERNMENT UNSUCCESSFULLY SO FAR FOR PERMISSION TO HIRE FOREIGN NATIONALS AND 18YEAROLDS WE CAN'T HIRE ANYONE UNDER 21 SAYS ROBERT HANSEN PRESIDENT OF A DARIEN WIS TRUCKING COMPANY UNDER HIS NAME THE GOOD STEADY FELLOWS GRADUATE FROM HIGH SCHOOL AND GET A JOB BY THE TIME THEY ARE ELIGIBLE TO DRIVE TRUCKS THEY HAVE FOUND A CAREER THE GUYS WE GET ARE THE GUYS WHO DON'T MAKE IT IN THEIR CAREERS OTHERS WORRY THAT THE DRIVER SHORTAGE WILL WORSEN ALONG WITH THE WORKING CONDITIONS TRUCK DRIVING INCREASINGLY INVOLVES A LOT MORE THAN JUST DRIVING MANY BIG GROCERY WAREHOUSES EXPECT DRIVERS TO DO MANUAL LABOR WITHOUT GETTING PAID FOR IT THEY TREAT THE DRIVERS LIKE INDENTURED SERVANTS SAYS TOM DONOHUE WHO HEADS THE AMERICAN TRUCKING ASSOCIATIONS IN ALEXANDRIA VA ON A RECENT DELIVERY TO A WAREHOUSE IN ELIZABETH NJ JOHN JOHNSON JR A 38YEAROLD DRIVER FOR ROBERT HANSEN TRUCKING INC ARRIVED AT 1230 AM CAUGHT FOUR HOURS OF SLEEP IN THE REAR OF HIS TRUCK AND THEN BACKED HIS TRAILER UP TO THE DOCK FOR A 6 AM APPOINTMENT MR JOHNSON WAS EXPECTED TO UNLOAD THE TRUCK CRAMMED WITH BOXES FROM SC JOHNSON & SON INC SORT THE VARIOUS PRODUCTS ONTO PALLETS AND WAIT FOR A WAREHOUSE CHECKER TO COUNT THE DELIVERY BUT HIS WORK WENT SLOWLY BECAUSE STACKS OF PALLETS CLOGGED THE UNLOADING AREA AND THE CHECKER SPENT TIME CHATTING WITH A FRIEND TO SPEED THE PROCESS MR JOHNSON HIRED FOR 50 ONE OF THE DAY LABORERS WHO WAIT OUTSIDE THE SPRAWLING WAREHOUSE BUT AFTER A COUPLE OF HOURS OF WORK THE LABORER COMPLAINED ABOUT HIS PAY GRABBED HIS JACKET AND WALKED OFF WITH THE 50 WHICH THE TRUCKING COMPANY HAD ALLOTTED TO MR JOHNSON AND WHICH HE COULD HAVE KEPT IF HE HAD DONE ALL THE UNLOADING HIMSELF MR JOHNSON MINUS THE 50 FINISHED UNLOADING THE TRAILER ALL IN ALL IT WAS A BAD DAY FOR MR JOHNSON WHO IS PAID ONLY FOR THE MILES HE DRIVES AND DIDN'T LEAVE THE WAREHOUSE UNTIL 425 PM TEN HOURS AND 25 MINUTES AT THE WAREHOUSE AND I HAVEN'T MADE A DIME HE SAID AND THEN COMPANIES WONDER WHY DRIVERS QUIT SUCH COMPLAINTS ARE DISMISSED BY JOHN CHETCUTI GENERAL MANAGER OF THE WAREHOUSE WHICH BELONGS TO THE WHITE ROSE FOODS SUBSIDIARY OF DI GIORGIO FOOD CORP MR CHETCUTI SAYS HE WOULD HAVE TO HIRE AT LEAST 25 DOCKWORKERS IF DRIVERS DIDN'T UNLOAD THEIR TRAILERS I CAN'T ABSORB THAT COST HE SAYS MR CHETCUTI ADDS THAT DRIVERS COME IN TIRED AND WANT TO REST THAT'S NOT OUR RESPONSIBILITY BUT SUCH ARGUMENTS DON'T HELP MR JOHNSON CLEARLY FATIGUED AFTER FINALLY GETTING UNLOADED AND HEADING HOME HE MADE A WRONG TURN ON THE NEW JERSEY TURNPIKE A MISTAKE THAT RESULTED IN A 14MILE DETOUR 9312280067 931228 ABREAST OF THE MARKET INDUSTRIALS CLIMB 3521 TO HIGH LATE BUY PROGRAMS SPUR AVERAGE BY ANITA RAGHAVAN AND CAITLIN MOLLISON STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCK MARKET AVERAGES CRUISED TO NEW HIGHS AS INVESTORS LOADED THEIR PORTFOLIOS WITH ECONOMICALLY SENSITIVE STOCKS HELPED BY A LATE BLAST OF COMPUTERGUIDED BUY PROGRAMS THE DOW JONES INDUSTRIAL AVERAGE RALLIED 3521 POINTS TO 379293 SMASHING THROUGH ITS RECORD OF 376443 SET ON DEC 13 GAINS IN CYCLICAL STOCKS ACCOUNTED FOR MUCH OF THE AVERAGE'S STRENGTH GENERAL ELECTRIC ROSE 1 3/8 TO 106 3/4 CATERPILLAR 2 1/8 TO 90 AND INTERNATIONAL PAPER 1 1/2 TO 68 1/4 STANDARD & POOR'S 500STOCK INDEX CLIMBED 316 POINTS TO 47054 BREAKING THROUGH ITS OLD HIGH OF 46950 SET ON OCT 15 AND THE NASDAQ COMPOSITE INDEX EDGED UP 236 TO 76106 BUT VOLUME ON THE NEW YORK STOCK EXCHANGE WAS EXTREMELY THIN WITH MANY INSTITUTIONAL INVESTORS AWAY FROM THEIR TRADING DESKS FOR THE EXTENDED CHRISTMAS WEEKEND SOME 1707 MILLION SHARES CHANGED HANDS ON THE BIG BOARD DOWN FROM THURSDAY'S ALREADYMODEST 2272 MILLION SHARES ADVANCING ISSUES OUTNUMBERED DECLINERS 1305 TO 787 STEVEN EINHORN STOCK STRATEGIST AT GOLDMAN SACHS SAID THE FINANCIAL MARKETS ARE BETTING THAT THE FEDERAL RESERVE BOARD DECIDED TO KEEP MONETARY POLICY UNCHANGED AT ITS OPEN MARKET COMMITTEE MEETING LAST WEEK THOUGH RESULTS OF THE MEETING WON'T BE MADE PUBLIC UNTIL NEXT MONTH THERE HAD BEEN RAMPANT SPECULATION IN THE STOCK AND BOND MARKETS THAT THE FED WOULD LEAN TOWARD HIGHER INTEREST RATES AT LAST TUESDAY'S MEETING I THINK THAT THE MARKET IS RECOGNIZING THAT THE ECONOMY WILL NOT GO OUT OF CONTROL AND THAT THEREFORE THE FED WILL NOT TIGHTEN SAID MR EINHORN MR EINHORN SAID HE WAS ENCOURAGED YESTERDAY THAT FINANCIAL STOCKS WHICH HAVE BEEN IN THE DOLDRUMS IN RECENT MONTHS WERE SHOWING SOME SIGNS OF LEADERSHIP OBVIOUSLY AN ENVIRONMENT OF STABLE INTEREST RATES IS BENEFICIAL TO FINANCIAL STOCKS BANK STOCKS FOR INSTANCE WERE MODESTLY HIGHER WITH CITICORP RISING 3/4 TO 37 5/8 CHEMICAL BANKING 3/4 TO 41 3/8 AND WELLS FARGO 7/8 TO 133 UTILITY STOCKS WHICH SOME ANALYSTS CONSIDER A LEADING INDICATOR OF INTEREST RATES WERE ALSO STRONG WITH THE DOW JONES UTILITY AVERAGE SURGING 118 POINTS TO 23042 THE FINANCIAL STOCKS HAVE TO DO WELL IF THE MARKET IS TO DO WELL SAID MR EINHORN NOTING THAT FOR THE PAST FEW MONTHS AS FINANCIAL STOCKS HAVE WAFFLED SO HAVE THE S&P AND THE INDUSTRIAL AVERAGE OIL STOCKS WERE PUMPED UP YESTERDAY AFTER OPPENHEIMER BOOSTED RECOMMENDATIONS OF SEVERAL ISSUES IN THE GROUP AMONG THOSE WITH STRONGER RECOMMENDATIONS MOBIL ROSE 1 1/8 TO 78 3/8 ATLANTIC RICHFIELD 1 1/2 TO 105 1/4 AND AMERADA HESS 1 TO 45 5/8 AMONG OTHER CYCLICALS DEERE ROSE 2 TO 73 5/8 GEORGIAPACIFIC ADDED 1 3/4 TO 69 3/4 AND GENERAL MOTORS GAINED 1 TO 56 1/4 TRANSPORTATION ISSUES SOARED WITH THE DOW JONES TRANSPORTATION AVERAGE TACKING ON 901 POINTS UAL ADDED 7/8 TO 147 1/2 DELTA AIR LINES EDGED UP 5/8 TO 55 7/8 AND ROADWAY SERVICES MOVED UP 1 TO 62 1/2 ON THE NASDAQ STOCK MARKET IN THE HEALTHCARE GROUP AMGEN MOVED UP 1 3/4 TO 48 1/4 ON NASDAQ THIS WEEK'S ISSUE OF BARRON'S REPORTED THAT THE RECENT DISENCHANTMENT WITH THE BIOTECHNOLOGY CONCERN COULD BE MISGUIDED ALSO HIGHER WAS MEDICAL CARE AMERICA WHICH ROSE 2 TO 23 THE WALL STREET JOURNAL REPORTED THAT AT LEAST SEVEN PROSPECTIVE SUITORS ARE COMBING THROUGH THE COMPANY'S BOOKS OPENING UP THE POSSIBILITY OF A BIDDING WAR FOR PART OR ALL OF MEDICAL CARE MERCK WHICH ROSE 1 TO 35 1/4 LED THE BIG BOARD'S MOSTACTIVES LIST THE COMPANY'S VOLUME WAS AT ABOUT 37 MILLION SHARES COMPARED WITH AVERAGE DAILY TURNOVER OF ABOUT 32 MILLION SHARES BUT HEALTH MAINTENANCE ORGANIZATION STOCKS TOOK A HIT ON REPORTS THAT THE CLINTON ADMINISTRATION WON'T PUSH MEDICARE PATIENTS TO JOIN HMOS US HEALTHCARE FELL 1 1/2 TO 56 3/4 MID ATLANTIC MEDICAL SERVICES PULLED BACK 1 1/4 TO 26 1/8 AND FHP INTERNATIONAL SLID 1 TO 25 1/2 ALL THREE ARE TRADED ON NASDAQ LEADING THE NASDAQ'S MOSTACTIVE LIST WAS ORACLE CORP WHICH EASED 7/8 TO 29 7/8 VOLUME WAS AT ABOUT 26 MILLION SHARES BUT LOWER THAN AVERAGE DAILY VOLUME ON THE STOCK OF 31 MILLION SHARES THE REST OF THE TECHNOLOGY GROUP WAS MOSTLY HIGHER NASDAQTRADED APPLE COMPUTER ADDED 1 1/4 TO 28 1/2 AND MOTOROLA ADVANCED 1 1/8 TO 91 3/8 ON THE BIG BOARD 9312280066 931228 BUSINESS BRIEF OSHMAN'S SPORTING GOODS INC STORE CUTS TO CAUSE CHARGE LOSS FOR FISCAL 4TH QUARTER OSHMAN'S SPORTING GOODS INC HOUSTON DECIDED TO CLOSE AN ADDITIONAL 33 UNDERPERFORMING STORES OVER THE NEXT TWO YEARS AND SAID THE MOVE WILL RESULT IN A 15 MILLION CHARGE IN ITS FISCAL FOURTH QUARTER AND A LOSS FOR THE PERIOD THE CLOSINGS WHICH ARE IN ADDITION TO SEVEN OTHER SMALL STORES THE COMPANY DECIDED TO CLOSE IN THE NEXT SIX MONTHS ARE PART OF A STRATEGY TO FOCUS ON MORE PROFITABLE MEGASTORES THE RETAILER CLOSED 33 SMALL STORES IN THE PAST 2 1/2 YEARS OSHMAN'S WOULDN'T SPECIFY THE SIZE OF ITS EXPECTED LOSS FOR THE QUARTER WHICH ENDS JAN 30 A YEAR EARLIER THE COMPANY EARNED 32 MILLION OR 54 CENTS A SHARE ON SALES OF 1011 MILLION SEPARATELY OSHMAN'S SAID A LENDER AGREED TO INCREASE ITS REVOLVING CREDIT FACILITY TO 40 MILLION FROM 325 MILLION TO ACCOMMODATE THE EXPANSION IN THE MEGASTORE SEGMENT IN NASDAQ STOCK MARKET TRADING OSHMAN'S SHARES CLOSED AT 7 UP 50 CENTS OR 77 9312280065 931228 LEISURE & ARTS A SAFARI FOR ECOTOURISTS DEEP IN THE HEART OF TEXAS BY AMY GAMERMAN GLEN ROSE TEXAS JUST TRY GETTING A GOOD NIGHT'S SLEEP DURING THE RUTTING SEASON NOT FAR FROM YOUR TENT A PAIR OF MALE FALLOW DEER ARE SNUFFLING AT EACH OTHER MOMENTS LATER THERE'S A RESOUNDING CLASH AS THEY LOCK HORNS IN A LOUD DUEL THAT GOES ON FOR ABOUT 40 MINUTES THEN JUST AS YOU NOD OFF THE WOLVES START HOWLING WELCOME TO FOSSIL RIM WILDLIFE CENTER A LITTLE BIT OF WILDERNESS DEEP IN THE HEART OF TEXAS THIS 2900ACRE WILDLIFE PARK 85 MILES SOUTHWEST OF DALLAS IS HOME TO 35 MAJOR SPECIES MANY OF THEM ENDANGERED OR EXTINCT IN THE WILD THERE ARE SCIMITARHORNED ORYX BLACK RHINOS AND MEXICAN GREY WOLVES AND THEN THERE'S THAT 36TH SPECIES THE ECOTOURIST MANY ZOOS RUN PROGRAMS TO BREED ENDANGERED SPECIES FAR FROM THE PUBLIC EYE ON PRIVATELY OWNED ISLANDS OR TRACTS OF LAND BUT FOSSIL RIM HAS TAUGHT AN OLD DOG A NEW MONEYMAKING TRICK IT'S INVITED PEOPLE IN TO HELP FOOT THE BILL THE WILDLIFE CENTER WHICH IS FULLY ACCREDITED BY THE AMERICAN ASSOCIATION OF ZOOLOGICAL PARKS AND AQUARIUMS IS LURING VACATIONERS WITH A DELUXE SAFARI CAMP COMPLETE WITH CLIMATE CONTROLLED TENTS LAVISH MEALS AND OBLIGINGLY PHOTOGENIC WILDLIFE THEY'RE COMING HERE FOR A VACATION SAYS JIM JACKSON WHO WITH HIS WIFE CHRISTINE JURZYKOWSKI HAS OWNED AND OPERATED FOSSIL RIM SINCE 1987 BY THE TIME THEY LEAVE WE HOPE THEY'VE GOT AN EDUCATION FOSSIL RIM HAS A GOOD REPUTATION AMONG MEMBERS OF THE ZOOLOGICAL COMMUNITY WHO WORK WITH THE CENTER ON INTERNATIONAL EFFORTS TO CONSERVE AND BREED CHEETAHS GREVY'S ZEBRA AND BLACK AND WHITE RHINOS AMONG OTHER SPECIES I'M IMPRESSED AS THE DEVIL SAID WILLIAM CONWAY GENERAL DIRECTOR OF THE WILDLIFE CONSERVATION SOCIETY THEY'VE RESEARCHED THIS CAREFULLY AND HIRED PROFESSIONAL STAFF AS COMMITTED AS THEY ARE MORE THAN THAT THEY LET SAFARIGOERS FEED ORANGES TO THE WHITE RHINOS ON HEARING THAT I GRABBED MY PITH HELMET AND HEADED WEST FOSSIL RIM IS IN THE NORTHERN END OF THE TEXAS HILL COUNTRY A LANDSCAPE OF LOW WOODED HILLS AND GRASSLAND NEARLY TWO HOURS FROM DALLAS A NINEANDAHALF MILE ROAD OPEN TO DAY VISITORS LOOPS THROUGH A LARGE SWATH OF THE WILDLIFE PARK OVER WHICH ZEBRA SIKA DEER WILDEBEESTS RETICULATED GIRAFFES OSTRICHES AND MANY OTHER SPECIES ROAM IN RELATIVE FREEDOM ALTHOUGH FOSSIL RIM ALSO FEATURES A FIVEROOM LODGE I HAD OPTED FOR THE TENT CAMP EXPERIENCE A 675 THREENIGHT WEEKEND PACKAGE THAT INCLUDES EVERYTHING BUT ALCOHOLIC BEVERAGES PRICES ARE LOWER DURING THE WEEK THE TENT CAMP IS IN THE HEART OF THE PRESERVE JUST BEYOND AN ELECTRIC FENCE ORYX FALLOW DEER AND INDIAN BLACKBUCK WITH BAROQUE CURLING HORNS GAMBOL UNDER THE OAK AND JUNIPER TREES OR DRINK AT A WATERING HOLE THE SIX TENTS ARE ACTUALLY SMALL WOODFRAME BUILDINGS COVERED IN SANDCOLORED CANVAS EACH HAS TWO TWIN BEDS A THERMOSTAT THAT CONTROLS HEAT AND AIR CONDITIONING AND A PRIVATE BATHROOM MY FELLOW SAFARIGOERS A MOSTLY OLDER BUNCH WHO HAIL FROM MICHIGAN WISCONSIN CALIFORNIA AND CANADA GATHER IN THE GLASSWALLED DINING ROOM NICK DAVIS THE CUTE BRITISH NATURALIST WHO WILL BE OVERSEEING OUR SAFARI LAYS DOWN THE RULES HERE IT'S THE TOURISTS WHO MUST KEEP TO THEIR PENS IF WE WANDER TOO CLOSE TO THE CAMP'S FENCE AN ALARM WILL SOUND WE CAN'T WALK OUTSIDE THE CAMP AND DURING OUR FORAYS INTO THE LARGE PASTURES WHERE THE ANIMALS ROAM WE'LL BE CONFINED TO AN OPEN JEEP THEN MR DAVIS POPS IN A VIDEO IN WHICH MS JURZYKOWSKI AND MR JACKSON TELL THE STORY OF FOSSIL RIM THE COUPLE WEREN'T CONSERVATIONISTS TO START SHE PRODUCED AND DEVELOPED FILMS HE RAN A SAILBOAT BUSINESS BUT THEY WERE INSPIRED BY THE STORY OF JOHN ASPINALL A BRITISH BUSINESSMAN TURNED CONSERVATIONIST THEY DECIDED TO DO THE SAME IMMERSING THEMSELVES IN THE FIELD WHEN THEY FIRST HEARD OF FOSSIL RIM IT WAS A BANKRUPT ANIMAL PARK HALF ITS CURRENT SIZE THEY SAW IT AS A CHANCE TO PUT THEIR IDEALS BACKED BY MS JURZYKOWSKI'S SIZABLE INHERITANCE INTO PRACTICE WE GET OUR REAL LOOK AT THEIR HANDIWORK THE NEXT DAY WITH A JEEP TOUR OF THE CENTER A BUNCH OF ADDAX A HIGHLY ENDANGERED ANTELOPE FROM NORTHERN AFRICA FLOCK TO THE JEEP FOR SNACKS OF ALFALFA PELLETS WHICH WE FEED THEM FROM PLASTIC CUPS TO GET UP CLOSE AND PERSONAL WITH WILD ANIMALS HOWEVER IS TO LEARN WHY THEY'RE USUALLY KEPT IN CAGES IF THEY AREN'T DANGEROUS CHANCES ARE THEY HAVE DISGUSTING HABITS THOSE WATERBUCK BY THE SIDE OF THE ROAD SECRETE AN OILY SUBSTANCE THAT MAKES THEIR SHAGGY COATS SMELL LIKE TURPENTINE GIRAFFES I LEARN LUBRICATE THEIR LONG NECKS WITH COPIOUS AMOUNTS OF SALIVA AS ONE LOWERS HIS NARROW SNOUT DOWN INTO MY PLASTIC FEED CUP I EXPERIENCE MY FIRST BRUSH WITH GIRAFFE DROOL THE JEEP STOPS BY A GROUP OF EUROPEAN RED DEER A MALE SURROUNDED BY A HAREM OF FEMALES BELLOWS A DISPLAY OF MACHO CALLED BUGLING A LONE MALE THE LOSER IN YESTERDAY'S MATING JOUST SULKS UNDER A TREE ACROSS THE ROAD HE TRIES TO SNEAK HIS WAY BACK INTO THE PACK WHILE HIS RIVAL IS DISTRACTED BY THE FEEDING FRENZY OVER AT THE JEEP ONLY TO BE BUGLED AWAY NOT ALL THE ANIMALS HAVE AS MUCH ROOM TO ACT OUT THE CHEETAHS ARE KEPT IN A NUMBER OF SMALLER PADDOCKS CONTAINED BY CHAIN LINK FENCES AND LOOK RATHER BORED THEY CAN'T CHASE DOWN WILDEBEESTS OR OTHER PREY APART FROM THE ODD WILD TURKEY THAT MAKES THE MISTAKE OF FLYING INTO THEIR PEN SO THEY SPEND THEIR TIME DOING THE ONLY OTHER THING THAT COMES NATURALLY BREEDING NEARLY 20 OF ALL CHEETAHS IN THIS COUNTRY TRACE THEIR ANCESTRY HERE AFTER LUNCH IT'S ON TO SEE THE WHITE RHINOS WHO ARE HUDDLED INSIDE THEIR WATERHEATED HOUSE THE SAFARIGOERS AIM THEIR CAMERAS AT THE 10MONTHOLD RHINO WHO WAS BORN HERE THEN LINE UP FOR ONE OF THE SAFARI'S STARRED ATTRACTIONS FEEDING WHOLE ORANGES TO DUDLEY A 30YEAROLD RHINO AS VIDEO CAMERAS WHIR DUDLEY OBLIGINGLY SNUFFLES UP ORANGE AFTER ORANGE SUCKING IN THE FEEDER'S HAND ALONG WITH IT AND EJECTING A STREAM OF ORANGE JUICE LATER ON I ASK MS JURZYKOWSKI AND MR JACKSON IF THE ANIMALS AREN'T BEING EXPLOITED BY THIS SETUP WHAT IF THEY FIND US TOURISTS REPULSIVE TOO IT'S PURELY THEIR CHOICE SAID MR JACKSON THEY DON'T RUN AWAY HOW DO WE KNOW THEY DON'T CONSIDER THEMSELVES AMBASSADORS MS JURZYKOWSKI CHIMES IN IT'S BEGUN TO RAIN BACK AT THE CAMP THE SAFARIGOERS SEEK AMUSEMENT IN THE DINING ROOM ONLY TO FIND MORE WILDLIFE IN THE FIGURATIVE SENSE THE BOOKSHELVES ARE STOCKED WITH SUCH PAGE TURNERS AS GAZELLES AND THEIR RELATIVES AND DIET FOR A POISONED PLANET MUSICAL SELECTIONS BY THE STEREO INCLUDE RAIN SOUNDS IN CASE THOSE OUTSIDE AREN'T ENOUGH ALONG WITH THE SOUNDTRACK OF OUT OF AFRICA AND SOMETHING CALLED WOLF TALK I'M ABOUT TO START HOWLING MYSELF ISN'T THERE A GAME OF SCRABBLE ANYWHERE HERE'S A GOOD GAME SAYS MR DAVIS WHIPPING OUT A SET OF SOMETHING CALLED ENDANGERED SPECIES IN FACT THE EXPERIENCE OF SAFARI CAMP SEEMS DESIGNED TO GIVE US NEW SYMPATHY FOR ZOO BEASTS LIKE THEM WE CAN'T WANDER FAR FOR THEIR MORNING JOG THE TWO GUYS FROM MICHIGAN ARE REDUCED TO RUNNING BACK AND FORTH ON THE CAMP'S DRIVEWAY 36 TIMES AND WE START TO LIVE FOR FEEDING TIME THREE HEAVY MEALS FEATURING NONEXOTIC NONENDANGERED MEATS SERVED BUFFETSTYLE THE NEXT DAY THE GROUP GETS TO GO BEHIND THE SCENES OF FOSSIL RIM IN THE CENTER'S ONEROOM CLINIC VETERINARIAN TOM DEMAAR DEMONSTRATES THE BLOWGUN HE USES TO SHOOT SEDATIVES AT AILING ANIMALS AND SHOWS OFF THE RECOVERY PEN WHERE A BALEFUL CHEETAH IS RECUPERATING FROM A SKINGRAFT OPERATION THE AFTERNOON WRAPS UP WITH A VISIT TO THE NORMALLY OFFLIMITS INTENSIVE MANAGEMENT AREA WHERE HARDTOBREED ANIMALS ARE KEPT INCLUDING SEVERAL NORTH AMERICAN SPECIES OF WOLVES TWO BLACK RHINOS AIRLIFTED FROM ZIMBABWE WHERE THEY ARE BEING POACHED TO THE POINT OF EXTINCTION STARE OUT AT THE LIMESTONE HILLS FROM THEIR PADDOCKS OF THEIR ORIGINAL GROUP TWO DIED OF A BLOOD DISORDER ARE THESE CREATURES TRULY BORN TO BE WILD THERE'S NO PLAN TO REINTRODUCE ANY OF THEM INTO THEIR NATIVE HABITATS IN THE NEAR FUTURE SOME MAY HAVE BEEN TOO SPOILED BY THE ACCOMODATIONS TO MAKE THE SWITCH THE ADDAX FOR EXAMPLE HAVE PLENTY OF WATER TO DRINK HERE BUT IN THEIR NATIVE DESERT ADDAX RARELY SEE THE STUFF THEY RECYCLE THEIR OWN URINE AND FOLLOW RAIN WILL IT COME AS A SHOCK TO THEM TO PUT THEM BACK INTO THE DESERT MR DAVIS MUSES SUNDAY MORNING AS I PREPARE FOR MY REINTRODUCTION INTO THE WILDS OF BROOKLYN I'M WONDERING THE SAME OH WELL FOR MY CULTURE SHOCK THERE'S ALWAYS WOLF TALK 9312280064 931228 TECHNOLOGY JURY FINDS ORTHO PILL DOESN'T VIOLATE PATENT OF AMERICAN HOME RARITAN NJ A FEDERAL JURY FOUND THAT ORTHO PHARMACEUTICAL CORP'S BIRTH CONTROL PILLS ORTHOCYCLEN AND ORTHO TRICYCLEN DON'T INFRINGE ON AN AMERICAN HOME PRODUCTS CORP PATENT AMERICAN HOME OFFICIALS COULD NOT BE REACHED FOR COMMENT BUT SOME ANALYSTS EXPECT THE DRUG COMPANY TO APPEAL I DON'T THINK THIS IS OVER SAID HEMANT K SHAH A DRUG COMPANY ANALYST AMERICAN HOME IS ALMOST CERTAIN TO APPEAL A US DISTRICT COURT JURY IN PHILADELPHIA FOUND THAT ORTHO PHARMACEUTICAL'S PILLS DO NOT INFRINGE ON AMERICAN HOME'S PATENT FOR THE USE OF NORGESTREL ACETATE A CHEMICAL COMPOUND AS AN ORAL CONTRACEPTIVE WE ARE PLEASED WITH THE OUTCOME OF THIS TRIAL SAID A SPOKESWOMAN FOR ORTHO PHARMACEUTICAL ORTHO MAY NOW SEEK DAMAGES FROM AMERICAN HOME FOR DELAYING THE MARKETING OF THE DRUG THE SPOKESWOMAN ADDED WE ARE REVIEWING A NUMBER OF OPTIONS SHE SAID THE TWO DRUG GIANTS WHICH DOMINATE THE 1 BILLION US BIRTH CONTROL PILL MARKET HAVE BEEN BATTLING OVER THE PILLS SINCE 1989 ORTHO PHARMACEUTICAL A UNIT OF JOHNSON & JOHNSON RECEIVED APPROVAL TO MARKET THE PILLS IN 1989 BUT THE PRODUCT LAUNCH WAS DELAYED WHEN AMERICAN HOME SOUGHT AND WAS GRANTED A PRELIMINARY INJUNCTION THE INJUNCTION WAS OVERTURNED AND ORTHO BEGAN MARKETING THE PILLS LAST YEAR JOHNSON & JOHNSON'S ORTHO UNIT HAS 36 OF THE ORAL CONTRACEPTIVE MARKET COMPARED WITH AMERICAN HOME'S 27 ACCORDING TO MR SHAH 9312280063 931228 COMMODITIES CORN AND SOYBEAN FUTURES SET CONTRACT HIGHS AS TRADERS FACE UP TO EXTENT OF WEAK HARVEST BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL GRAIN FUTURES PRICES SET CONTRACT HIGHS AS TRADERS CONTINUED TO COME TO TERMS WITH THE WEAKNESS OF THIS YEAR'S US HARVEST AT THE CHICAGO BOARD OF TRADE CORN FOR MARCH DELIVERY LEAPED 275 CENTS TO 30175 CENTS A BUSHEL AT ONE POINT DURING YESTERDAY'S TRADING SESSION THE MARCH CONTRACT REACHED 3025 A BUSHEL THE HIGHEST PRICE AT WHICH ANY CORN FUTURES CONTRACT HAS TRADED IN THE 1990S SOYBEANS MEANWHILE CLIMBED ABOVE THE KEY 7ABUSHEL LEVEL FOR THE FIRST TIME SINCE AUGUST WITH THE JANUARY CONTRACT SETTLING AT 70175 A BUSHEL UP 575 CENTS THE KEY NEWS EVENT OF THE DAY WAS A REPORT THAT THREE TO FIVE INCHES OF RAIN HAD FALLEN ON THE ALREADYDRENCHED SOYBEANGROWING FIELDS OF ARGENTINA WHICH IS SECOND ONLY TO BRAZIL AMONG SOUTH AMERICAN SOYBEAN PRODUCERS AND IS EXPECTED TO PRODUCE ABOUT 12 MILLION METRIC TONS OF SOYBEANS THIS YEAR ABOUT 20 OF THE ARGENTINE SOYBEAN CROP HAS YET TO BE PLANTED IF FARMERS ARE FORCED TO WAIT UNTIL JANUARY TO SEED THEIR CROPS THE PLANTS WILL HAVE LESS TIME TO DEVELOP AND YIELDS ARE EXPECTED TO BE REDUCED MOREOVER SEEDS PLANTED IN SOGGY GROUND OFTEN HAVE TROUBLE GERMINATING OR ARE BESET BY DISEASE THE PROBLEMS IN ARGENTINA ARE ESPECIALLY IMPORTANT WHEN CONSIDERED IN THE CONTEXT OF THE EXTREMELY WEAK US HARVEST THIS YEAR SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO WE HAD A LOUSY CROP AND UNLIKE IN OTHER SUCH YEARS THE MARKET DIDN'T RESPOND TO THE NEWS UNTIL NOVEMBER MR BASSE SAID IN ITS MOST RECENT CROP REPORT THE US AGRICULTURE DEPARTMENT PEGGED THE CORN CROP AT ONLY 65 BILLION BUSHELS DOWN 31 FROM LAST YEAR'S RECORD CORN PRODUCTION OF ABOUT 947 BILLION BUSHELS FARMERS FARED LITTLE BETTER IN PRODUCTION OF SOYBEANS WITH THIS YEAR'S CROP ESTIMATED AT 183 BILLION BUSHELS DOWN 17 FROM LAST YEAR'S 22 BILLION BUSHELS TO MAKE MATTERS WORSE THE USDA IS EXPECTED TO REDUCE ITS ESTIMATE OF THIS YEAR'S CORN CROP BY AS MUCH AS 50 MILLION TO 100 MILLION BUSHELS AND TO SCALE BACK THE SOYBEAN CROPPRODUCTION FIGURE BY 15 MILLION TO 40 MILLION BUSHELS THE NEXT USDA CROPPRODUCTION REPORT WILL BE RELEASED JAN 12 IN THAT REPORT THE DEPARTMENT ALSO WILL ESTIMATE FEED USAGE OF US GRAIN A FORECAST THAT IS PARTICULARLY IMPORTANT TO GRAIN PRICES IN THE WAKE OF LAST SUMMER'S DISASTROUS HARVEST PRICES ANALYSTS SAY MUST RISE TO LEVELS AT WHICH GRAIN BECOMES TOO EXPENSIVE FOR FARMERS TO FEED TO THEIR LIVESTOCK IN ORDER TO ENSURE THAT ENOUGH GRAIN IS LEFT FOR HUMAN CONSUMPTION BECAUSE GRAIN PRICES DIDN'T REACT TO THE WEAK HARVEST UNTIL NOVEMBER THE JANUARY USDA REPORT IS LIKELY TO SHOW VERY HIGH USAGE OF GRAIN AS FEED MR BASSE SAID TRADERS THIS WEEK WILL BE CLOSELY WATCHING PRIVATE ADVANCE FORECASTS OF THE CONTENTS OF THE USDA REPORT FOR EXAMPLE A WIDELY WATCHED REPORT BY SPARKS COS A GRAIN FORECASTING CONCERN IS DUE OUT SOMETIME THIS WEEK AN INDICATION OF UNEXPECTEDLY HIGH FEED USAGE OR LARGERTHANEXPECTED REDUCTIONS IN THE USDA'S CROPPRODUCTION ESTIMATES WOULD BE LIKELY TO PUSH GRAIN FUTURES PRICES HIGHER AT THE CBOT IN OTHER COMMODITY MARKETS YESTERDAY COFFEE COFFEE FUTURES PRICES ROSE AS BRAZIL CONTINUED TO TAKE CONCRETE STEPS TOWARD FULFILLING ITS OBLIGATIONS UNDER AN EXPORTLIMITING AGREEMENT AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE COFFEE FOR MARCH DELIVERY WAS UP 075 CENT TO 7720 CENTS A POUND BRAZIL AND OTHER LATIN AMERICAN COFFEEPRODUCING NATIONS HAVE ALLIED THEMSELVES WITH AFRICAN PRODUCERS TO WITHHOLD EXPORTS AT TIMES WHEN AVERAGE MONTHLY COFFEE PRICES ARE BELOW 80 CENTS A POUND BRAZIL'S ADHERENCE TO THE PROGRAM IS SEEN AS CRITICAL TO THE PLAN'S PROSPECTS FOR SUCCESS BECAUSE BRAZIL IS THE WORLD'S LARGEST COFFEE PRODUCER JUDITH GANES SENIOR COFFEE ANALYST FOR MERRILL LYNCH SAID BRAZIL HELD AN AUCTION YESTERDAY TO BUY COFFEE TO COMPLY WITH THE PLAN SCHEDULED ANOTHER AUCTION FOR TOMORROW AND SAID IT WILL SOON ANNOUNCE A REGULAR SCHEDULE OF SUCH AUCTIONS FOR FUTURE MONTHS WHEN COFFEE PRICES ARE BELOW 80 CENTS A POUND ENERGY NATURALGAS FUTURES PRICES SURGED IN THE WAKE OF THE CHRISTMAS COLD WAVE WITH NEARPANIC BUYING ON THE NEW YORK MERCANTILE EXCHANGE NATURAL GAS FOR FEBRUARY DELIVERY JUMPED 124 CENTS TO SETTLE AT 2088 A MILLION BRITISH THERMAL UNITS THE ARCTIC WEATHER ALSO HELPED HEATINGOIL FUTURES ALTHOUGH PRICES WERE MIXED AT THE CLOSE BUT THE CRUDEOIL MARKET REMAINED BEARISH FAILING TO DRAW ANY SUPPORT FROM THE WEATHER CRUDE FUTURES PLUNGED INSTEAD TO LIFEOFCONTRACT LOWS FEBRUARY CRUDE SETTLED 35 CENTS LOWER AT 1413 A BARREL WHILE THE MARCH CONTRACT WAS DOWN 29 CENTS TO 1450 9312280062 931228 TECHNOLOGY BRIEF MEDTRONIC INC CONCERN'S NEW HEART VALVE IS APPROVED FOR MARKETING MEDTRONIC INC SAID THE FOOD AND DRUG ADMINISTRATION GRANTED IT MARKETING APPROVAL FOR A BIOPROSTHETIC HEART VALVE DESIGNED FOR EASIER IMPLANTATION IN OLDER PATIENTS BIOPROSTHESES ARE MADE OF ANIMAL TISSUE UNLIKE METALANDPLASTIC MECHANICAL VALVES WHILE TISSUE VALVES TYPICALLY DON'T LAST AS LONG AS MECHANICAL DEVICES THEY ARE CONSIDERED ADVANTAGEOUS FOR ELDERLY PATIENTS BECAUSE RECIPIENTS TYPICALLY DON'T NEED TO TAKE DAILY DOSES OF ANTICOAGULANT DRUGS AS ARTIFICIALVALVE WEARERS DO THE MINNEAPOLIS CONCERN MAKES A DIVERSE LINE OF MEDICAL DEVICES IT SAID THE HANCOCK MO II VALVE CLEARED BY THE FDA MAKES USE OF A SCALLOPED FLEXIBLE SUTURE RING THE SYNTHETIC FIBER USED TO ATTACH THE VALVE TO THE HEART AND SURGEONS CAN ADAPT IT TO APPROXIMATE THE CONTOURS OF A SMALL IRREGULAR OR CALCIFIED OPENING BETWEEN THE HEART'S CHAMBERS CALCIFICATION IN WHICH THE HEART'S TISSUE BECOMES ROUGH AND GRAINY THE COMPANY NOTED IS A MAJOR COMPONENT OF DISEASE DETERIORATION IN PERSONS OVER 65 AND OFTEN COMPLICATES THE IMPLANTATION OF PROSTHETIC VALVES 9312280061 931228 TECHNOLOGY LIPOSOME TO DELAY UK AMPHOCIL SALES STOCK DECLINES 18 MENLO PARK CALIF LIPOSOME TECHNOLOGY INC DECIDED TO DELAY THE SALE IN THE UNITED KINGDOM OF ITS FIRST APPROVED PHARMACEUTICAL SENDING ITS SHARES SHARPLY LOWER ON THE NASDAQ STOCK MARKET LIPOSOME'S SHARES FELL 175 OR 18 TO 825 THE PLUNGE CAME AFTER THE COMPANY SAID IT WOULD DELAY FOR AS LONG AS 90 DAYS THE SALE IN THE UK OF AMPHOCIL WHICH FIGHTS SERIOUS FUNGAL INFECTIONS THAT SOMETIMES ACCOMPANY CHEMOTHERAPY AND ORGAN TRANSPLANTS LIPOSOME HAD PLANNED TO BEGIN SELLING THE DRUG IN MIDJANUARY THROUGH ITS PARTNERSHIP WITH ZENECA PHARMACEUTICALS OF THE UK EARLIER THIS YEAR REGULATORS IN THE UK APPROVED THE SALE OF AMPHOCIL WHICH TREATS FUNGAL INFECTIONS WITHOUT PLACING UNDUE STRESS ON THE KIDNEY A SIDE EFFECT OF PRESENT ANTIFUNGAL METHODS BUT IN PREPARING ITS APPLICATION TO SELL AMPHOCIL THROUGHOUT EUROPE LIPOSOME SAID IT REEXAMINED ITS DATA FROM CLINICAL TRIALS AND REDUCED SLIGHTLY THE PERCENTAGE OF THOSE WHO RESPONDED POSITIVELY TO TREATMENT THE CHANGE IN INTERPRETATION OF LIPOSOME'S CLINICAL RESULTS IS NOT A BIG DEAL SAID MARY ANN GRAY AN ANALYST AT KIDDER PEABODY & CO THE COMPANY IS BEING VERY CAREFUL WITH HOW THEY DEAL WITH REGULATORY AGENCIES IN EUROPE A SPOKESMAN FOR LIPOSOME SAID ITS INTENT WAS TO OFFER OFFICIALS IN THE UK THE CHANCE TO REVIEW THE AMENDED FINDINGS AND ENSURE THAT ITS REGULATORY FILINGS IN THE REST OF EUROPE WERE CONSISTENT WITH ITS BRITISH FILING THE COMPANY PLANS TO MAKE THESE FILINGS NEXT YEAR THE EUROPEAN MARKET COULD PRODUCE 50 MILLION IN ANNUAL SALES OF AMPHOCIL ESTIMATES MICHAEL WALSH AN ANALYST AT ROBERTSON STEPHENS & CO LARGER SALES ARE EXPECTED IN THE US BUT STRICTER RULES ON CLINICAL TRIALS MAKE IT LIKELY THAT LIPOSOME WON'T EVEN BEGIN THE PROCESS OF GAINING APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION UNTIL LATE 1994 OR EVEN 1995 MR WALSH SAID 9312280060 931228 BUSINESS BRIEF ALPINE GAMING INC FIRM TO BUY CENTURY CASINOS IN 36 MILLION TRANSACTION ALPINE GAMING INC AGREED TO ACQUIRE CLOSELY HELD CENTURY CASINOS MANAGEMENT INC FOR 36 MILLION IN STOCK UNDER THE ACCORD CENTURY CASINOS SHAREHOLDERS WILL END UP OWNING 71 OF ALPINE'S FULLY DILUTED SHARES OUTSTANDING BOTH CASINO COMPANIES ARE BASED IN DENVER IN NASDAQ STOCK MARKET TRADING ALPINE'S STOCK CLOSED UP 625 CENTS OR 11 AT 6375 9312280059 931228 BUSINESS BRIEF CONVERGENT SOLUTIONS INC SOFTWARE FIRM PLANS MERGER WITH KTI ENVIRONMENTAL SOFTWARE DEVELOPER AND MARKETER CONVERGENT SOLUTIONS INC LAURENCE HARBOR NJ SAID IT SIGNED A LETTER OF INTENT TO MERGE WITH PRIVATELY HELD KTI ENVIRONMENTAL GROUP INC IN A STOCK TRANSACTION KTI BASED IN GUTTENBERG NJ IS A HOLDING COMPANY WITH INTERESTS IN WASTETOENERGY PROCESSING PLANTS THE MERGER SUBJECT TO A DEFINITIVE AGREEMENT APPROVAL OF BOTH COMPANIES' BOARDS AND REGULATORY APPROVALS WILL LEAVE STOCKHOLDERS OF KTI WITH A 60 COMMONSTOCK INTEREST IN CONVERGENT SOLUTIONS CONVERGENT SOLUTIONS' PREVIOUS STOCKHOLDERS WILL OWN THE REMAINING 40 CONVERGENT SOLUTIONS WILL BE THE SURVIVING CORPORATION IN NASDAQ STOCK MARKET TRADING CONVERGENT SOLUTIONS' SHARES CLOSED AT 2 UP 1875 CENTS OR 10 CONVERGENT SOLUTIONS SAID KTI STOCKHOLDERS' INTEREST COULD INCREASE TO 67 IF THE ANNUAL PRETAX PROFIT OF THE KTI SEGMENT REACHES 3 MILLION IN 1994 AND 1995 AND AT LEAST 8 MILLION FOR THE TWOYEAR PERIOD ENDING DEC 31 1995 9312280058 931228 SEC FILES COMPLAINT ALLEGING FALSE REPORTS FROM SPECTRA SERVICES BOSTON THE SECURITIES AND EXCHANGE COMMISSION SAID IT FILED A COMPLAINT IN FEDERAL COURT HERE AGAINST THE FORMER PRESIDENT OF SPECTRA PHARMACEUTICAL SERVICES INC AND A MAJOR SHAREHOLDER ALLEGING THE DEFENDANTS USED FALSE RESEARCH REPORTS IN 1988 TO PROMOTE THE PURCHASE OF SPECTRA SHARES SPECTRA AN OPHTHALMIC DRUG CONCERN FORMERLY BASED IN HANOVER MASS FILED FOR CHAPTER 7 OF THE US BANKRUPTCY CODE IN JULY 1990 THE COMPLAINT ALLEGES THAT ROBERT E BAKER A SPECTRA CONSULTANT AND BYRON L SANDERS A BROKER WROTE FALSE AND MISLEADING RESEARCH REPORTS ABOUT SPECTRA WHICH VICTOR L KASHNER PRESIDENT OF A FLORIDA BROKERAGE FIRM UTILIZED TO SELL SPECTRA SHARES TO THE PUBLIC JAMES A HANNAN SPECTRA'S FORMER PRESIDENT ALLEGEDLY REVIEWED AND APPROVED THE MATERIAL AND USED SPECTRA FUNDS TO PAY FOR ONE REPORT JONNIE R WILLIAMS A FORMER SPECTRA SHAREHOLDER WITH AN 8 TO 9 STAKE IN THE COMPANY ALLEGEDLY CONTRACTED AND PAID FOR THE SECOND REPORT THE COMPLAINT SAID ACCORDING TO THE COMPLAINT THE MISLEADING REPORTS FALSELY SUGGESTED THAT A NEW SPECTRA DRUG UNDER DEVELOPMENT LACRAMORE COULD MAKE SKIN LOOK YOUNGER WHILE THE STOCK WAS BEING PROMOTED IN THE REPORTS MR WILLIAMS ALLEGEDLY SOLD 355000 SPECTRA SHARES OR ABOUT A 5 STAKE WITHOUT DISCLOSING THE SALE TO THE SEC THE COMPLAINT SAID THE SUIT IS STILL PENDING AGAINST MESSRS SANDERS AND KASHNER MICHAEL J MISSAL THEIR ATTORNEY SAID THEY DENY ALL ALLEGATIONS AGAINST THEM THEY DON'T BELIEVE THEY'VE ENGAGED IN ANY WRONGDOING THEY LOOK FORWARD TO THE OPPORTUNITY TO RESOLVE THIS MATTER IN A SATISFACTORY MANNER HE SAID PAUL L PERITO AN ATTORNEY FOR MR WILLIAMS SAID HIS CLIENT HAS CHOSEN TO INVEST TIME AND FINANCIAL RESOURCES IN OTHER ACTIVITIES MORE PRODUCTIVE THAN A PROTRACTED AND COSTLY CIVIL LAWSUIT ATTORNEYS FOR THE OTHER DEFENDANTS COULDN'T BE REACHED FOR COMMENT 9312280057 931228 MONDAY'S MARKETS STOCKS SOAR TO RECORDS DOLLAR RISES INDUSTRIALS GAIN 3521 IN LIGHT TRADING AS BONDS END MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES VAULTED TO RECORDS IN LIGHT POSTHOLIDAY TRADING BOND PRICES WERE MIXED AND THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE SOARED 3521 POINTS TO A RECORD 379293 STANDARD & POOR'S 500STOCK INDEX GAINED 316 TO A RECORD 47054 AND THE NASDAQ COMPOSITE INDEX ROSE 236 TO 76106 STRONG MARKETS OVERSEAS A BETTER TONE TO THE ECONOMIC EXPANSION AND IMPROVED CONSUMER CONFIDENCE HELPED LIFT THE MARKET TO NEW HIGHS SAID ALAN R ACKERMAN MARKET STRATEGIST AT REICH & CO THE DOW INDUSTRIALS SMASHED THROUGH ITS PREVIOUS RECORD OF 376443 SET ON DEC 13 EARLY IN THE SESSION AND CATAPULTED HIGHER ON A LATE WAVE OF COMPUTERGUIDED PROGRAM BUYING TO FINISH AT ITS HIGH FOR THE DAY VOLUME ON THE BIG BOARD SLOWED TO ITS LOWEST LEVEL FOR A FULL DAY OF TRADING SINCE OCT 11 AS MANY INVESTORS ALREADY HAVE CLOSED THEIR BOOKS FOR 1993 BUYING IS SELECTIVE AND SELLERS SEEM TO BE OUT OF TOWN MR ACKERMAN SAID THE OILS ROSE AFTER OPPENHEIMER & CO UPGRADED ITS INVESTMENT RATING ON SEVERAL STOCKS IN THE GROUP WE HAD A BIG BOOST IN OIL STOCKS DESPITE A DROP IN OIL PRICES TODAY COLD WEATHER AND ANALYST UPGRADES HAVE HELPED MR ACKERMAN SAID THERE'S ALSO BEEN SOME BOTTOMFISHING IN THE OILS SINCE THIS YEAR THEY HAVE BEEN LAGGARDS IN THE MARKET ANALYSTS SAID THAT EVEN THOUGH LONGTERM BOND PRICES SLUMPED STOCK INVESTORS WEREN'T DISHEARTENED BECAUSE TRADING VOLUME WAS SO THIN MOREOVER THERE WAS LITTLE NEGATIVE NEWS TO ACCOUNT FOR THE DOWNTURN IN BOND PRICES OVERSEAS GERMAN STOCK PRICES SURGED 14 TO A FIFTHSTRAIGHT RECORD AND FRENCH STOCKS JUMPED 15 TO A RECORD BUT TOKYO STOCKS PLUMMETED 19 AS INVESTORS STILL AWAITED DETAILS OF THE GOVERNMENT'S ECONOMICSTIMULUS PLAN WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 022 TO 11081 IN MAJOR MARKET ACTION STOCK PRICES RALLIED VOLUME TOTALED 170724310 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1305 ISSUES ROSE AND 787 FELL BOND PRICES WERE MIXED THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST NEARLY A QUARTER OF A POINT OR NEARLY 250 FOR EACH 1000 FACE AMOUNT TO YIELD 623 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS TRADING AT 17013 MARKS AND 11145 YEN COMPARED WITH 16969 MARKS AND 11085 YEN LATE THURSDAY 9312280056 931228 INTERNATIONAL BRIEF RHONEPOULENC SA CHEMICALS GROUP MAY SHED ABOUT 10 NONCORE HOLDINGS RECENTLY PRIVATIZED FRENCH CHEMICALS AND DRUG GROUP RHONEPOULENC SA PARIS CONFIRMED REPORTS MONDAY THAT THE GROUP IS CONSIDERING SHEDDING ABOUT 10 NONCORE ACTIVITIES OVER THE NEXT YEAR OR TWO RHONEPOULENC CHAIRMAN JEANRENE FOURTOU TOLD SHAREHOLDERS AT A MEETING FRIDAY WHICH GAVE SOME OUTLOOK FOR THE GROUP IN 1994 THAT RHONEPOULENC WAS LOOKING TO TRIM DOWN HOLDINGS THAT DIDN'T FIT WITH THE GROUP'S STRATEGIC ACTIVITIES A SPOKESWOMAN HOWEVER WOULDN'T DISCLOSE WHAT AREAS THESE HOLDINGS INVOLVED NOR WOULD SHE REVEAL THE AMOUNTS OF CASH THE PROPOSED SALE WOULD BRING IN SHE NOTED THAT THESE ACTIVITIES WERE MEDIUMSIZE AND THAT COMPANY OFFICIALS DECIDED TO SHED THEM AFTER DETERMINING THAT SUCH ACTIVITIES HAD AN UNCERTAIN FUTURE AT RHONEPOULENC IN TRADING AT THE PARIS BOURSE RHONEPOULENC SHARES ROSE 23 TO 1482 FRANCS 2569 FROM 1448 FRANCS 9312280055 931228 BUSINESS BRIEF RH MACY & CO RETAILER'S SAMESTORE SALES FELL BY 08 IN NOVEMBER RH MACY & CO NEW YORK SAID SAMESTORE SALES OR SALES IN STORES OPEN AT LEAST A YEAR FELL 08 IN NOVEMBER FROM A YEAR EARLIER THE COMPANY WHICH IS UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION SAID SALES FELL TO 5704 MILLION FROM 5827 MILLION THE LOWER SALES REFLECT CONTINUING ECONOMIC WEAKNESS IN THE COMPANY'S MAJOR MARKETS INCLUDING CALIFORNIA AND THE NORTHEAST A SPOKESMAN SAID AFTER ADJUSTING FOR A RESTRUCTURING OF ITS ELECTRONICS BUSINESS SAMESTORE SALES ROSE 09 THE COMPANY SAID EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION FOR NOVEMBER WERE 316 MILLION UP FROM THE EQUIVALENT FIGURE OF 163 MILLION A YEAR EARLIER OPERATING PROFIT WAS 85 MILLION COMPARED WITH AN OPERATING LOSS OF 61 MILLION A YEAR EARLIER THE COMPANY SAID ITS CASH FLOW CONTINUES TO BENEFIT FROM STRICT INVENTORY MANAGEMENT AND EXPENSE CONTROLS 9312280054 931228 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN YEAREND BONUSES SHOW SIGNS OF LIFE FOR SOME BUT ARE BLEAKER FOR OTHERS BONUS PAY INCREASINGLY LINKED TO COMPANY PERFORMANCE IS SELECTIVELY GOOD SAYS RICHARD PINOLA PRESIDENT OF CONSULTANT RIGHT ASSOCIATES IN PHILADELPHIA AS A RESULT FIRMS THAT SQUEEZED WEAK REVENUES INTO A BIGGER BOTTOM LINE PAY WELL ATMEL CORP A SAN JOSE CALIF SEMICONDUCTOR FIRM WILL BOOST BONUSES 20 TO 25 BASED ON PRETAX PERFORMANCE BUT THE LINK TO PROFITS CAN MEAN LOW BONUSES TOO MANAGEMENT AT CALGON CARBON CORP IN PITTSBURGH HAS RECOMMENDED TO THE BOARD THAT NO BONUSES BE PAID A CUT FROM LAST YEAR IMCO RECYCLING INC IN IRVING TEXAS PROBABLY WILL CUT OFFICERS' BONUSES AS WILL DALLASBASED AMBER'S STORES INC AN ARTS AND CRAFTS RETAILER THEN THERE IS WALL STREET WHERE THE NUMBER OF MILLIONAIRES WILL GROW AS FIRMS POST THEIR THIRD STRAIGHT YEAR OF SOARING PROFITS SAYS RECRUITER GZ STEPHENS CRIME PAYS AT LEAST FOR THE YOUNG AND SHORTSIGHTED DANIEL NAGIN OF CARNEGIE MELLON UNIVERSITY AND JOEL WALDFOGEL OF YALE FOUND THAT YOUNGER MEN'S INCOMES WERE 24 HIGHER AFTER FIRSTTIME FRAUD CONVICTIONS THAN THEIR CONVICTIONFREE PEER GROUP MR WALDFOGEL EXPLAINS THAT YOUNG MEN WITH CRIMINAL CONVICTIONS TAKE SPOTMARKET JOBS WHICH OFTEN PAY MORE AT FIRST BUT HAVE A LIMITED FUTURE THOSE WITHOUT CRIMINAL RECORDS GET MORE EARLY JOB TRAINING AND CAREERDEVELOPMENT HELP THOUGH OFTEN WITH LOWER PAY RESULTS ARE WORSE FOR THOSE WHO COMMIT FIRST CRIMES LATER IN LIFE THE PAY OF THE CONVICTED AND THE CLEAN ARE ABOUT EVEN FOR PEOPLE AGED 25 TO 39 BUT PAY LOSSES STEEPEN WITH AGE FOR THOSE WHO COMMIT FIRST CRIMES AFTER 40 MR WALDFOGEL SUGGESTS THE STATISTICS MAY POINT TO A NEED FOR STIFFER PENALTIES ON YOUNG OFFENDERS WHO MAY SEE THE PAY PATTERN AS ANOTHER REASON NOT TO TOE THE LINE THE SLOPES ARE FILLING UPJOBWISE THAT IS IN UTAH ALTA SKI LIFT HIRED 325 OR SO WORKERS IN THE FALL COLORADO'S STEAMBOAT SKI & RESORT FILLED ITS 1200 SEASONAL SLOTS WHILE WAITING FOR RUNS TO OPEN IN DECEMBER IN NEW HAMPSHIRE ATTITASH SKI AREA ALSO NO LONGER IS LOOKING FOR ANYONE BUT KILLINGTON SKI RESORT IN VERMONT SAYS IT IS INTERVIEWING A STEADY FLOW OF APPLICANTS INCLUDING LIFT ATTENDANTS MANY RESORTS SCRAMBLE FOR HOUSEKEEPERS CRESTED BUTTE WHERE HIRING IS UP 25 DANGLES FREE TRANSPORTATION TO GUNNISON COLO TO ENTICE CLEANING PEOPLE SUNDAY RIVER IN MAINE ALSO NEEDS HOUSEKEEPERS AS PART OF ITS 14 JUMP IN HIRING FROM LAST YEAR SNOWBIRD RESORT IN UTAH WHICH EMPLOYS 700 IN THE WINTER IS STILL HUNTING FOR ABOUT 10 OF ITS WORKERS WE ARE NEVER FULLY STAFFED SAYS A SPOKESWOMAN OVER THERE ENGLAND BELGIUM AND AUSTRALIA ARE THE MOST POPULAR SPOTS FOR US COMPANIES TO SHIP EXECUTIVES SAYS A REVIEW OF 40000 RELOCATIONS BY PHH HOMEQUITY A WILTON CONN FIRM ALSO POPULAR FRANCE MEXICO SINGAPORE CANADA GERMANY THE NETHERLANDS AND HUNGARY NEARLY 15 OF RELOCATIONS WILL BE INTERNATIONAL BY THE YEAR 2000 PREDICTS DEBORAH CONLAN PHH VICE PRESIDENT FUTURE HOT SPOTS INCLUDE RUSSIA BRAZIL ARGENTINA AND KOREA A NEW WAY TO PAY BROADBANDING IN WHICH EMPLOYERS MELD A HOST OF SALARY GRADES INTO A FEW WIDE BANDS IS BEING USED OR CONSIDERED BY NEARLY A THIRD OF THE 3400 COMPANIES ASKED BY WILLIAM M MERCER INC A NEW YORK CONSULTING FIRM THE MOVE IS A COMPLEMENT TO A FLATTER ORGANIZATIONAL STRUCTURE SAYS DARRELL CIRA A MERCER PAY EXPERT TWO OF FIVE OF THE NEW PROGRAMS WERE INSTITUTED IN 1993 AUTOMATIC JOB LOSS JAPANESE COMPANIES BUILDING CARS IN THE US HAVE CAUSED A NET LOSS OF 158000 JOBS ARGUES CANDACE HOWES IN A NEW REPORT FOR THE ECONOMIC POLICY INSTITUTE A UNIONBACKED RESEARCH GROUP TRANSPLANT PRODUCTION WHILE SLIGHTLY PREFERABLE TO IMPORTING DESTROYS MORE JOBS THAN IT CREATES SHE SAYS PARTLY BECAUSE THE TRANSPLANTS USE MORE IMPORTED PARTS THAN US CAR MAKERS COMPANIES SEEK FEEDBACK FROM WORKERS IN A VARIETY OF WAYS EMPLOYEE SURVEYS ARE STILL POPULAR BANKING COMPANY FIRST UNION IN CHARLOTTE NC CALLS ITS SURVEY A REPORT CARD FROM EMPLOYEES MANAGERS JUST RECEIVED A 39 GRADE OUT OF A POSSIBLE FIVE FROM WORKERS ON SUCH ISSUES AS LISTENING AND BALANCING WORK AND FAMILY AT GEORGIAPACIFIC IN ATLANTA WORKERS RATED THE COMPANY AN 80 OUT OF 100 ON WHETHER THEY WERE PROUD TO WORK THERE TENNECO IN HOUSTON HAS DONE THREE SURVEYS SINCE 1992 BUT SURVEYS DON'T WORK FOR MANY ARGONAUT GROUP A LOS ANGELESBASED INSURER DITCHED ITS EMPLOYEESATISFACTION POLL SEVERAL YEARS AGO BECAUSE MANAGERS SAID IT WASN'T WORKING INSTEAD PRESIDENT CHARLES RINSCH RUNS OPEN FORUMS WITH EMPLOYEES AMERICAN AIRLINES CHAIRMAN ROBERT CRANDALL HOLDS SIMILAR MEETINGS ABBEY HEALTHCARE A COSTA MESA CALIF HEALTHCARE COMPANY GROUPS LOWERLEVEL WORKERS INTO A PRESIDENT'S ADVISORY COUNCIL THE CHECKOFF NOW THAT'S JOB EXPERIENCE BARBERS LEAD ALL PROFESSIONS IN TENURE WITH A MEDIAN 27 YEARS ON THE JOB FIREFIGHTING SUPERVISORS HAVE THE LONGEST MEDIAN TIME 20 YEARS WITH THE SAME EMPLOYER SAYS THE BUREAU OF LABOR STATISTICS AMONG THE ODDEST REASONS OFFERED BY EMPLOYEES SEEKING A RAISE ACCORDING TO ACCOUNTEMPS MY SPOUSE SAYS I OUGHT TO MAKE MORE AND IF YOU DON'T GIVE ME A RAISE I'M GOING ON VACATION 9312280053 931228 LETTERS TO THE EDITOR LEGALIZED DRUGS IDEA DESERVES FAIR HEARING IN RESPONSE TO ROBERT L WOODSON'S DEC 14 EDITORIALPAGE PIECE THE WRONG FIX CONCERNING SURGEON GENERAL JOYCELYN ELDERS'S SUGGESTION THAT DRUGS SHOULD BE LEGALIZED MR WOODSON MISSES THE SURGEON GENERAL'S POINT THE MORALITY OF DRUG USE IN WHATEVER FORM WHETHER IT BE NICOTINE ALCOHOL OR CRACK COCAINE IS NOT THE ISSUE THE QUESTION IS WHETHER WE ARE BETTER OFF DECRIMINALIZING THE ILLICIT DRUG TRADE REGULATING ITS CONTINUED USE AND IT WILL CONTINUE WHETHER WE LIKE IT OR NOT AND DEVOTING OUR EFFORTS TO EDUCATING MODELING AND REHABILITATING RATHER THAN TRACKING DOWN TRYING AND IMPRISONING DR ELDERS WANTS TO LOOK AT THIS QUESTION AND SHE DESERVES A FAIR HEARING MR WOODSON RIGHTLY STATES THAT THE DRUG ABUSE PROBLEM IS A MATTER OF VALUES AND MORALS HE THEN SAYS THAT SUCCESS AGAINST DRUG ABUSE HAS BEEN ACHIEVED THROUGH PRIVATE PROGRAMS DEDICATED INDIVIDUALS AND PERSONAL INVESTMENT I AGREE BUT WHAT DOES THE MONSTROUS DRUG PROHIBITION HAVE TO DO WITH MORALS OR INDIVIDUAL INITIATIVE WHICH ARE ABOUT PRIVATE BEHAVIOR NOT GOVERNMENT COERCION MR WOODSON WAS JUST RIGHT IN HIS ANALYSIS OF DR ELDER'S ADVOCATION OF DRUG LEGALIZATION BUT HE PASSED OVER ONE FURTHER POINT HER RECOMMENDATION TURNS ON ITS HEAD THE ROLE OF SURGEON GENERAL AS THE NATION'S HIGHEST PUBLIC HEALTH OFFICIAL DR ELDERS IS CHARGED WITH PROMOTING AND MAINTAINING HEALTH STANDARDS NOT DEFERRING CRIME NO MATTER HOW HIGHLY ONE VALUES THE SAVED LIVES THROUGH LOWER CRIME RATES THAT MIGHT RESULT FROM DRUG LEGALIZATION A HEALTHBASED CASE FOR DRUG LEGALIZATION CANNOT BE MADE DOING DRUGS IS UNHEALTHY AND THE SURGEON GENERAL HAS NO BUSINESS PROMOTING IT IN ANY FORM OR TOWARD ANY END NEEDLESS TO SAY THIS IS TYPICAL OF A PERMISSIVE CLINTON ADMINISTRATION THAT GUTS ITS DRUG CZAR OFFICE WHILE SLASHING COVERAGE FOR DRUG TREATMENT IN ITS HEALTH CARE PLAN 9312280052 931228 LETTERS TO THE EDITOR GAY AND LESBIAN GROUP DIDN'T BACK PROLIFERS A DEC 1 RULE OF LAW COLUMN DON'T RICO PROLIFERS BY ALAN SEKULOW OF PAT ROBERTSON'S AMERICAN CENTER FOR LAW AND JUSTICE STATES THAT THE AMICUS BRIEF FILED ON BEHALF OF THE PROLIFE GROUPS INCLUDES ALONG WITH PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS ORGANIZATIONS SUCH AS THE GAY AND LESBIAN TASK FORCE THIS IS IN REFERENCE TO THE CASE NATIONAL ORGANIZATION FOR WOMEN V SCHEIDLER DUE TO AN EDITING ERROR THIS STATEMENT IS FALSE AND HAS LED SOME PEOPLE TO BELIEVE INCORRECTLY THAT THE NATIONAL GAY & LESBIAN TASK FORCE SIGNED ONTO THE AMICUS BRIEF ON BEHALF OF THE ANTIABORTION ACTIVISTS AND OPERATION RESCUE IT DID NOT A COMMITTEE CALLED THE GAY AND LESBIAN TASK FORCE WITHIN PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS SIGNED ONTO THE BRIEF THE BRIEF DOCUMENT LISTS THE GROUP AS THE PETA GAY AND LESBIAN TASK FORCE 9312280051 931228 BUSINESS BRIEF MCDONNELL'S TROUBLES WITH C17 PLANE MAY BRING RELIEF FROM A12 CLAIMS ST LOUIS MCDONNELL DOUGLAS CORP'S FINANCIAL WOES WITH THE C17 TRANSPORT PLANE MAY HELP THE COMPANY AVOID PAYING AT LEAST TEMPORARILY HUNDREDS OF MILLIONS OF DOLLARS FOR THE ILLFATED A12 ATTACK JET CANCELED BY THE NAVY NEARLY THREE YEARS AGO DEFENSE DEPARTMENT OFFICIALS ARE CONSIDERING WHETHER TO EXTEND AN AGREEMENT DEFERRING PAYMENT OF MORE THAN 14 BILLION IN TOTAL CLAIMS THE NAVY IS SEEKING FROM MCDONNELL DOUGLAS AND GENERAL DYNAMICS CORP STEMMING FROM THE COLLAPSE OF THE A12 PROGRAM THE DEFERMENT HAS BEEN IN PLACE SINCE EARLY 1991 AND THE CONTRACTORS WANT TO KEEP IT INTACT UNTIL A FEDERAL COURT RULES ON THEIR COUNTERCLAIM THAT THE GOVERNMENT OWES THEM ABOUT 15 BILLION FOR ALLEGEDLY IMPROPERLY HALTING WORK ON WHAT WAS SUPPOSED TO BE THE NAVY'S NEXT GENERATION CARRIERBASED ATTACK JET BUT FOR THE FIRST TIME SINCE THE CONTROVERSY ERUPTED NAVY OFFICIALS EXPLICITLY ARE LINKING THEIR DEFERMENT DECISION WITH THE POTENTIAL IMPACT OF A PROPOSED C17 SETTLEMENT REQUIRING MCDONNELL DOUGLAS TO SPEND MORE THAN 450 MILLION ON FLIGHT TESTING AND IMPROVING THE MANAGEMENT OF THE C17 PROGRAM THE GOVERNMENT'S LATEST APPROACH ACCORDING TO COMPANY AND INDUSTRY OFFICIALS FURTHER INCREASES THE LIKELIHOOD THAT THE A12 DEFERMENT WILL BE EXTENDED ONCE AGAIN MCDONNELL DOUGLAS SAID IT EXPECTS A DECISION BY EARLY FEBRUARY 9312280050 931228 POLITICS & POLICY CLINTON CHOOSES TALBOTT TO FILL NO 2 STATE POST BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON STROBE TALBOTT PRESIDENT CLINTON'S TOP ADVISER ON RUSSIA AND HIS FORMER OXFORD UNIVERSITY ROOMMATE WILL BE NOMINATED TODAY TO THE NO 2 POSITION AT THE STATE DEPARTMENT IF APPROVED BY THE SENATE MR TALBOTT WILL SUCCEED CLIFTON R WHARTON WHO WAS FORCED OUT OF THE JOB IN EARLY NOVEMBER AMIDST A FIRESTORM OF CRITICISM FROM SECRETARY OF STATE WARREN CHRISTOPHER AND THE REST OF THE CLINTON FOREIGNPOLICY TEAM THE APPOINTMENT IS INTENDED BOTH TO POLISH THE DEPARTMENT'S PUBLIC IMAGE MR TALBOTT IS A SKILLED PRESS BRIEFER AND HAS GOTTEN GOOD REVIEWS FOR HIS CONGRESSIONAL PRESENTATIONS AND TO CEMENT MR CHRISTOPHER'S PERSONAL TIES TO THE PRESIDENT MR TALBOTT HAS WON KUDOS FOR HIS MANAGEMENT OF US POLICY TOWARD RUSSIA BUT SOME CRITICS HAVE SUGGESTED THAT HE HAS BEEN TOO EAGER AND TOO GENEROUS IN HIS SUPPORT FOR THE RUSSIANS A CRITICISM THAT HAS INTENSIFIED IN RECENT WEEKS SINCE THE STRONG SHOWING OF ULTRANATIONALISTS AND COMMUNISTS IN RUSSIAN PARLIAMENTARY ELECTIONS AS DEPUTY SECRETARY OF STATE MR TALBOTT WILL PLAY THE ROLE OF MR CHRISTOPHER'S ALTER EGO SAID ONE SENIOR US OFFICIAL HE'LL DO EVERYTHING FROM MANAGING THE DEPARTMENT WHEN THE SECRETARY TRAVELS TO CONCEPTUALIZING AND ARTICULATING LARGER POLICY ISSUES THE OFFICIAL SAID A FORMER TIME MAGAZINE COLUMNIST WITH NO PREVIOUS GOVERNMENT EXPERIENCE MR TALBOTT HAS PROVED TO BE A DEFT OPERATOR HIS CLOSE PERSONAL FRIENDSHIP WITH THE PRESIDENT HAS GIVEN HIM INFLUENCE AND ACCESS THAT FAR OUTSTRIP HIS FORMAL POSITION AT THE SAME TIME HE HAS BEEN CAREFUL NOT TO UPSTAGE OR THREATEN EITHER MR CHRISTOPHER OR NATIONAL SECURITY ADVISER ANTHONY LAKE MR TALBOTT FLEW TO CALIFORNIA LAST NIGHT TO BE WITH MR CHRISTOPHER FOR THE ANNOUNCEMENT OF HIS NOMINATION HIS APPOINTMENT OFFICIALS SAID IS TESTIMONY TO THE IMPORTANCE THAT MR CLINTON PLACES ON US RELATIONS WITH RUSSIA MR TALBOTT ACCORDING TO OFFICIALS WILL CONTINUE TO HEAD AN INTERAGENCY GROUP THAT MANAGES RUSSIA POLICY WHILE HIS CURRENT DEPUTY JAMES COLLINS WILL BE NOMINATED TO SUCCEED HIM AS AMBASSADORATLARGE FOR THE FORMER SOVIET UNION IN HIS YEAR AS RUSSIAPOLICY CZAR MR TALBOTT HAD SOME REMARKABLE SUCCESSES AT HIS URGING MR CLINTON BACKED RUSSIAN PRESIDENT BORIS YELTSIN AT EVERY TURN AND PRIED AN UNPRECEDENTED 2 BILLION IN AID FOR RUSSIA FROM A WARY CONGRESS UNDER MR TALBOTT'S STEWARDSHIP THE ADMINISTRATION ALSO BEGAN TO BUILD AN AMBITIOUS AND RISKY STRATEGIC PARTNERSHIP WITH RUSSIA THAT INCLUDES CLOSE COLLABORATION ON A VARIETY OF SENSITIVE MILITARY AND SCIENTIFIC PROJECTS MR TALBOTT'S ENTHUSIASM FOR MR YELTSIN AND RUSSIA WASN'T BLUNTED AFTER THE STRONG SHOWING OF ANTIREFORM FORCES IN RECENT PARLIAMENTARY ELECTIONS THERE AND HIS NEW ROLE SAY OFFICIALS IS A FURTHER INDICATION THAT THE US WILL STICK BY THE RUSSIAN LEADER IN THE MONTHS TO COME MR CHRISTOPHER ACCORDING TO OFFICIALS HAD BROUGHT FOUR NAMES TO THE PRESIDENT AS POSSIBLE DEPUTIES MR TALBOTT VETERAN DIPLOMAT MORTON ABRAMOWITZ US AMBASSADOR TO RUSSIA THOMAS PICKERING AND ASSISTANT SECRETARY OF STATE FOR EAST ASIA WINSTON LORD INSTEAD OF SINGLING OUT HIS OLD FRIEND MR CLINTON APPROVED THEM ALL SAYS ONE AIDE HE TOLD CHRIS THAT THE CHOICE WAS HIS TO MAKE MR CHRISTOPHER CHOSE THE PRESIDENT'S OLD FRIEND 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 9312280049 931228 CREDIT RATINGS SONY CORP TOKYO MOODY'S INVESTORS SERVICE INC SAID IT CONFIRMED ITS RATINGS ON ABOUT 42 BILLION OF THIS CONSUMER ELECTRONICS AND ENTERTAINMENT COMPANY'S LONGTERM DEBT TO REFLECT ITS EXPECTATION THAT SONY WILL CUT COSTS AND INCREASE CASH FLOW MOODY'S CONFIRMED THE DOUBLEA3 SENIOR UNSECURED DEBT RATINGS OF SONY CORP AND ITS SONY CAPITAL CORP AND SONY EUROFINANCE BV UNITS THE RATINGS AGENCY'S ACTION ALSO AFFECTS 200 BILLION YEN 181 BILLION OF JAPANESE SHELF REGISTRATION AND 45 BILLION IN AUTHORIZED AMOUNT OF MEDIUMTERM NOTES THE RATINGS HAD BEEN PLACED UNDER REVIEW IN AUGUST IN THE NEAR TERM THE RATINGS AGENCY EXPECTS SONY'S OPERATING PERFORMANCE TO REMAIN WEAK DUE TO SLACK DEMAND IN KEY GEOGRAPHIC MARKETS SONY WILL CONTINUE TO BE HURT BY STAGNANT DOMESTIC AND WORLD ECONOMIES INTENSIFYING PRICE COMPETITION A STRONG YEN AND THE LACK OF NEW HIT CONSUMER PRODUCTS MOODY'S SAID DESPITE DIFFICULT MARKET CONDITIONS MOODY'S NOTED THAT SONY IS STRENGTHENING ITS POSITION IN THE AUDIO/VISUAL MARKET AND IS POISED TO BE A STRONG COMPETITOR IN THE EMERGING MULTIMEDIA INDUSTRY THE COMPANY IS ALSO EXPECTED TO IMPROVE ITS DEBTPROTECTION MEASUREMENTS BY STREAMLINING ITS OPERATIONS REDUCING COSTS AND MOVING MORE OF ITS PRODUCTION FACILITIES OFFSHORE TO REDUCE THE EFFECT OF CURRENCY FLUCTUATIONS THE RATINGS AGENCY SAID 9312280048 931228 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ELECTRIC FUEL CORP AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA CJ LAWRENCE/DEUTSCHE BANK SECURITIES CORP AND OSCAR GRUSS & SON INC JOHN Q HAMMONS HOTELS LP AN OFFERING OF 285 MILLION OF FIRST MORTGAGE NOTES VIA KIDDER PEABODY & CO SARA LEE CORP A SHELF OFFERING OF UP TO 400 MILLION OF DEBT SECURITIES OR COMMON SHARES OR WARRANTS TO PURCHASE DEBT OR EQUITY TII INDUSTRIES INC AN OFFERING OF SEVEN MILLION COMMON SHARES VIA LADENBURG THALMANN & CO WISCONSIN PHARMACAL CO AN OFFERING OF UP TO 14 MILLION COMMON SHARES XPEDITE SYSTEMS INC AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INC AND FURMAN SELZ INC 9312280047 931228 MARKETING BY JENNIFER CODY NOTHING PUTS CONSUMERS ON GUARD QUITE AS MUCH AS CLAIMING A PRODUCT IS IMPROVED MARKET RESEARCHERS SAY DISCOUNT AND THOSE ELUSIVE QUALITIES LITE AND ULTRA ALSO AROUSE SKEPTICISM MARKETING HYPE IS SOMETHING CONSUMERS REALLY LIKE TO TALK ABOUT SAYS MONA DOYLE CONSUMER EXPERT AND EDITOR OF THE SHOPPER REPORT NEWSLETTER THE NEWSLETTER RECENTLY POLLED 363 SHOPPERS ABOUT PROMOTIONAL TERMS RANGING FROM CARING TO PATRIOTIC THE TOP OFFENDER IMPROVED WAS SELECTED BY 76 OF THOSE SURVEYED AS BEING MOST FREQUENTLY MISUSED MOST CONSUMERS PERCEIVE IMPROVEMENTS TO BE MINOR AND LARGELY IMPERCEPTIBLE IMPROVED NOW MEANS THE SAME OLD THING IN NEW PACKAGES SNIFFED ONE SHOPPER ANOTHER OFFERED THIS TRANSLATION IMPROVED NOW MEANS DOWNSIZED THE RUNNERUP FRESH WHICH CONSUMERS SAID IS OFTEN IMPROPERLY USED FRESH FRUIT FOR EXAMPLE SOUNDS FISHY TO SOME HOW CAN FRUIT BE FRESH IF IT'S SHIPPED ACROSS THE COUNTRY ONE SHOPPER WONDERED CONSUMERS ALSO ARE DUBIOUS ABOUT THE USE OF PATRIOTIC IN PROMOTING PRODUCTS IT'S NO LONGER ASSUMED THAT MADE IN THE US' IS PATRIOTIC SAYS MS DOYLE BECAUSE HALF THE PARTS ARE MADE IN HONG KONG AND JAPAN FOR MANY YOUNG ADULTS MELVILLE CORP'S SHOE RETAILING UNIT THOM MCAN EVOKES MEMORIES OF SHOESHOPPING TRIPS WITH THEIR MOTHERS BUT THE CHAIN RECENTLY DESIGNED MORE UPSCALE STORES IN THE HOPES OF ATTRACTING YOUNGER MORE FASHIONCONSCIOUS SHOPPERS AND IT IS USING WHAT IT CONSIDERS SHOCKING ADVERTISING ON NEW YORK CITY SUBWAY TRAINS THE POSTERS FEATURE TWENTYSOMETHINGS AGAINST BRIGHT MTVLIKE BACKGROUNDS AND CAPTIONS THAT POKE FUN AT THE PURVEYOR OF FAMILY FOOTWEAR BEFORE YOU JUDGE OUR NEW STORES REMEMBER WE KNEW YOU WHEN YOU WERE STILL A VIRGIN SAYS ONE AD FEATURING THE SMIRKING FACE OF A FASHIONABLY GRUNGY YOUNG MAN IN ANOTHER A PHOTO OF A GANGLY EIGHTYEAROLD APPEARS IN A THOUGHTBUBBLE ABOVE A WELLDRESSED YOUNG WOMAN YOU CAME TO NEW YORK TO HIDE YOUR UNGLAMOUROUS PAST IT SAYS WHY CAN'T WE THE COMPANY'S EAST COAST TELEVISION SPOTS ARE MORE GENERAL BUT EQUALLY AVANTGARDE THEY FEATURE MUSINGS BY WELLHEELED YOUNG MEN AND WOMEN I NEVER THOUGHT I'D CONSIDER PIERCING SOMETHING OTHER THAN MY EAR I NEVER THOUGHT THE DOLLS WE GREW UP WITH WOULD GIVE WOMEN AN INFERIORITY COMPLEX I NEVER THOUGHT THERE WOULD BE OVER 80 CHANNELS AND STILL NOTHING ON AND THE ENDLINE I NEVER THOUGHT I'D FIND SUCH COOLLOOKING SHOES AT THOM MCAN WE THOUGHT YOU CAN TALK TO NEW YORKERS IN A WAY YOU CAN'T TALK TO EVERYONE ELSE WE CERTAINLY WOULDN'T PUT THOSE POSTERS ON LONG ISLAND SAYS MARJORIE SPITZ ACCOUNT SUPERVISOR FOR THOM MCAN'S AD AGENCY KIRSHENBAUM & BOND THE APPROACH SHE SAYS IS KIND OF LIKE A NEW YORK THING SALES IN NEW YORK ARE RISING SHE SAYS PEOPLE REALLY DO WANT TO GO BACK IN THOM MCAN STORES BUT THERE IS A STIGMA ATTACHED TO IT MARKETING THROUGH TOLLFREE NUMBERS CONTINUES TO GROW CALLS TO 800 NUMBERS ROSE TO NEARLY 13 BILLION IN 1993 FROM ABOUT 11 BILLION CALLS LAST YEAR ACCORDING TO AMERICAN TELEPHONE & TELEGRAPH CO THERE ARE MORE THAN 500000 COMPANIES USING 800 NUMBERS ACCORDING TO AT&T AND THE FIGURE HAS BEEN GROWING ANNUALLY AT&T SAYS THIS YEAR'S TOLLFREE BUSINESS DIRECTORY LISTS 160000 FIRMS USING AT&T 800 NUMBERS UP 10000 FROM LAST YEAR STAN RAPP A DIRECTMARKETING EXPERT ATTRIBUTES MUCH OF THAT GROWTH TO CATALOG SALES AND HOMESHOPPING INFOMERCIALS THE GROWING POPULARITY OF SERVICE LINES ALSO PLAYS A PART FOR EXAMPLE BURGER KING HAS AN 800 LINE FOR CUSTOMER COMMENTS DISCOUNT RETAILER KMART BASED IN TROY MICH IS TESTING A TOLLFREE HEALTHISSUES INQUIRY LINE THROUGH ITS PHARMACY DIVISION ANOTHER SELLING TECHNIQUE THAT'S BOOSTING 800NUMBER USAGE AFTERMARKETING TO CALLERS TO GENERATE MORE AND BIGGER SALES ONCE CONSUMERS CALL THEY BECOME A PROSPECT' SAYS JODI MERYL WALLACE VICE PRESIDENT OF MARKETING AT ELECTRONIC INFORMATION SYSTEMS EITHER FOR THAT PARTICULAR PRODUCT OR ANOTHER ONE THE COMPANY WILL MARKET TO THEM DOWN THE ROAD THE LETTER Z AND VOWELS EARN A+ REVIEWS FROM BRANDNAMING SPECIALISTS THE TREND IN THE LAST YEAR HAS BEEN MOVING TO NAMES THAT CONVEY A SENSE OF EXCITEMENT ABOUT PRODUCTS SAYS FRANK DELANO CHAIRMAN OF THE NEW YORK CONSULTING CONCERN DELANO GOLDMAN & YOUNG THAT GOAL HE SUGGESTS IS BEST ACHIEVED BY MORE INTERNATIONALSOUNDING NAMES ENDING IN VOWELS SUCH AS HIS FIRM'S CAPTIVA BRAND NAME FOR POLAROID CORP'S INSTANT CAMERA THE NAME HE SAYS SUGGESTS CAPTIVATING AND THE CAPTURE OF AN IMAGE AND TWO VOWELS ARE BETTER THAN ONE SAYS MR DELANO CITING OLDSMOBILE'S AURORA AND ACHIEVA AND NISSAN'S ALTIMA GM DROPPED ITS CALAIS LINE IN PART MR DELANO CLAIMS BECAUSE OF THE NAME HE SAYS IT MEANT NOTHING IT MAY SOUND FRENCH BUT IT'S NOT A PERSON IT'S NOT A PLACE IT'S NOT EVEN A FRENCH WORD IT WAS JUST A WORD THAT DIDN'T SAY ANYTHING ABOUT THE PRODUCT CALAIS IN FACT IS THE NAME OF A FRENCH PORT 9312280046 931228 YOUR MONEY MATTERS NOT EVERY INVESTOR IN PRU PARTNERSHIPS SHOULD RUSH TO PUT IN A CLAIMS FORM BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL ABOUT 340000 INVESTORS IN PRUDENTIALBACHE LIMITED PARTNERSHIPS WILL SOON BE RECEIVING CLAIMS FORMS THEY CAN USE TO SNATCH A SHARE OF THE BROKERAGE FIRM'S RECENT SETTLEMENT WITH REGULATORS BUT NOT EVERYBODY WHO RECEIVES A CLAIMS FORM SHOULD TAKE ADVANTAGE OF THE SETTLEMENT LEGAL ADVISERS SAY IT DEPENDS ON THE FACTS OF THE INDIVIDUAL CASE SOME INVESTORS SHOULD IMMEDIATELY TRY TO TAP INTO THE RESTITUTION FUND PARTICULARLY IF THEY NEED THE MONEY RIGHT AWAY LAWYERS SAY SO SHOULD INVESTORS WITH SMALL CLAIMS OF SAY UNDER 10000 AND IF THEY BOUGHT PARTNERSHIPS MORE THAN SIX YEARS AGO THE ONLY SHOT AT RECOVERING MONEY IS FILING THE CLAIMS FORM THAT'S BECAUSE THE SETTLEMENT IN WHICH PRUDENTIAL WILL PAY AT LEAST 330 MILLION IN A RESTITUTION FUND FOR CLIENTS WAIVES THE STATUTE OF LIMITATIONS THAT NOW BARS INVESTORS FROM PURSUING OLDER LEGAL CLAIMS FOR MANY INVESTORS HOWEVER IT COULD PAY TO SIT TIGHT AND NOT RUSH TO FILE A CLAIM ADVISERS SAY THAT'S PARTICULARLY TRUE FOR THOSE WITH MONEY ON HAND AND STRONG CASES WITH PALPABLE PROOF OF BEING MISLED INTO BUYING PARTNERSHIPS INVESTORS HAVE 12 MONTHS TO GRAB A CHUNK OF THE RESTITUTION FUND SOME LAWYERS ARE ADVISING THEIR CLIENTS TO WAIT AND SEE HOW EARLY SETTLEMENT OFFERS BY PRUDENTIAL PAN OUT BEFORE DECIDING IF THEY WANT TO PROCEED WITH A PRIVATE ARBITRATION OR LAWSUIT INSTEAD YOU HAVE A YEAR TO FILE CLAIMS AND THE FUND WON'T BE DEPLETED UNLESS PRU GOES OUT OF BUSINESS SAYS FARRELL C GLASSER A NEW YORK LAWYER HIS ADVICE TO INVESTORS WITH PARTNERSHIP CLAIMS WAIT AND GET THE BENEFIT OF THE VALUATIONS PRU IS PLACING ON THEM EITHER WAY THE MESSAGE TO INVESTORS IS CLEAR DON'T FILL OUT THE FORMS CAVALIERLY THE CLAIMS FORM MAY BE THE MOST IMPORTANT DOCUMENT PRUDENTIAL PARTNERSHIP INVESTORS WILL FILL OUT SINCE THEY OPENED THEIR BROKERAGE ACCOUNT AT THE FIRM NOW KNOWN AS PRUDENTIAL SECURITIES MANY INVESTORS HAVE LOST THE BULK OF THEIR ORIGINAL PARTNERSHIP INVESTMENT AND THEY WON'T GET MUCH BACK IF THEY MAKE ANY SIGNIFICANT MISTAKES IN THE CLAIMS PROCESS THIS FORM IS GOING TO PROVIDE THE ENTIRE ESSENCE OF THE CUSTOMERS' CLAIM AGAINST PRUDENTIAL SAYS J BOYD PAGE AN ATLANTA LAWYER REPRESENTING CUSTOMERS WITH PARTNERSHIP CLAIMS AGAINST THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT IT IS GOING TO BE THE BASIS FOR ANY SETTLEMENT OFFER THAT IS FORTHCOMING AND WILL BE A CRITICAL DOCUMENT THAT IS CAREFULLY SCRUTINIZED IF A CLIENT DECIDES TO PROCEED TO EXPEDITED ARBITRATION IN OCTOBER THE SECURITIES AND EXCHANGE COMMISSION AND 49 STATE SECURITIES REGULATORS ACCUSED THE BIG BROKERAGE FIRM OF WIDESPREAD FRAUD IN SELLING ABOUT 700 PARTNERSHIPS TOTALING ABOUT 8 BILLION UNDER THE SETTLEMENT ACCORD INVESTORS WHO BOUGHT PRUDENTIAL PARTNERSHIPS WILL RECEIVE THE CLAIMS FORM BY MIDJANUARY PRUDENTIAL WILL THEN OFFER EITHER A SETTLEMENT OR REJECT THE CLAIM IF INVESTORS ARE DISSATISFIED THEY CAN SUBMIT THE CLAIM TO EXPEDITED ARBITRATION IN WHICH AN ARBITRATOR SELECTED BY AN INDEPENDENT CLAIMS ADMINISTRATOR WILL MAKE A BINDING RULING ON THE MATTER INVESTORS WHO ALREADY HAVE SETTLED PRIVATE LAWSUITS OR ARBITRATIONS AGAINST PRUDENTIAL ARE BARRED FROM TAPPING INTO THE REPARATIONS FUND FOR THE SAME PARTNERSHIPS SO ARE INVESTORS WHO HAVE LOST PARTNERSHIP CASES AGAINST PRUDENTIAL UNLESS THE DECISIONS WERE BASED SOLELY ON STATUTEOFLIMITATIONS GROUNDS INVESTORS CAN RECOVER COMPENSATORY DAMAGES THAT COVER LOSSES BUT NOT PUNITIVE DAMAGES OR ATTORNEYS' FEES INVESTORS ALSO CAN RECOVER INTEREST CALCULATED AT THE ANNUALIZED TREASURYBILL RATE DURING THE TIME OF THE INVESTMENT PRUDENTIAL PLANS TO REJECT CLAIMS MADE BY MANY SAVVY INVESTORS WHO BOUGHT PARTNERSHIPS AS TAX SHELTERS ON THE GROUNDS THAT THE INVESTORS WERE SOPHISTICATED ENOUGH TO KNOW THE PARTNERSHIPS' RISKS BUT REGULATORS SAY THAT PRUDENTIAL CONTRARY TO SUGGESTIONS IN SOME NEWS ACCOUNTS WON'T BE ABLE TO FLATLY REJECT CLAIMS FILED BY ESTATES OF DECEASED INVESTORS INVESTORS DON'T NECESSARILY NEED A LAWYER TO FILL OUT THE CLAIMS FORM WITH CLAIMS OF UNDER 10000 A LAWYER STARTS EATING UP PART OF THAT AND YOU DON'T GET ATTORNEYS' FEES UNDER THE REGULATORY SETTLEMENT ACCORD SAYS IRVING M POLLACK THE CLAIMS ADMINISTRATOR WHO IS A FORMER SEC COMMISSIONER AND ENFORCEMENT CHIEF BUT FOR PEOPLE WITH BIGGER OR MORE COMPLICATED CLAIMS THERE ARE SIGNIFICANT ADVANTAGES IN HIRING AN ATTORNEY SOME LAWYERS SUCH AS MR PAGE HAVE POOLED DAMAGING SALES DOCUMENTS AND AFFIDAVITS CULLED FROM EARLIER PARTNERSHIP CASES FOR USE IN THE CLAIMS FORM FILLING OUT THE FORM MR PAGE SAYS IS LIKE PREPARING FOR A COURT CASE BECAUSE THAT'S WHAT IT ULTIMATELY COULD TURN INTO HERE'S A RUNDOWN OF SOME OF THE CLAIMSFORM QUESTIONS AND WHAT INVESTORS OUGHT TO CONSIDER INVESTMENT OBJECTIVES WHEN ASKED TO DESCRIBE YOUR INVESTMENT OBJECTIVES IN BUYING THE PARTNERSHIPS DON'T JUST SAY TO MAKE MONEY DOING SO LEGAL ADVISERS SAY WOULD ALLOW PRUDENTIAL TO ARGUE THAT YOU IMPLICITLY WERE TAKING THE RISKS ASSUMED IN SEEKING A SIZABLE RETURN IN A FOLLOWUP MULTIPLECHOICE QUESTION THERE'S NO BOX TO CHECK OFF IF YOU WERE SEEKING SAFETY IF THAT WAS YOUR OBJECTIVE CHECK THE BOX THAT SAYS INCOME AND CAPITAL PRESERVATION LAWYERS SAY TAX SHELTERS THE CLAIMS FORM ASKS WHETHER THE PARTNERSHIPS WERE REPRESENTED TO AN INVESTOR AS A TAX SHELTER LAWYERS CAUTION THAT CASUALLY CHECKING THE YES BOX COULD LEAD PRUDENTIAL TO REJECT YOUR CLAIM THEY SAY THAT IF INVESTORS WERE TOLD BY THEIR PRUDENTIAL BROKER THAT SOME OF THEIR PARTNERSHIP INCOME WOULD BE TAXFREE THAT DOESN'T NECESSARILY MEAN THEY BOUGHT THE INVESTMENTS AS TAX SHELTERS NET WORTH MAKE SURE YOU DON'T OVERSTATE YOUR NET WORTH DON'T INCLUDE CARS HOMES FURNISHINGS AND OTHER VALUABLES WHEN CALCULATING THIS NUMBER LAWYERS SAY USE YOUR ADJUSTED GROSS INCOME INCLUDING OTHER FACTORS THAT INFLATE YOUR NET WORTH WILL MAKE IT MUCH MORE DIFFICULT TO SAY THE PARTNERSHIPS WERE UNSUITABLE BUSINESSES ADVANTAGES AND RISKS THE MOST LOADED QUESTIONS ARE NOS 17 18 AND 19 LAWYERS SAY THESE ASK WHAT INVESTORS WERE TOLD ABOUT THE BUSINESSES ADVANTAGES AND RISKS OF THE PARTNERSHIPS THEY BOUGHT THESE QUESTIONS ARE GOING TO BE ONES THAT PRIMARILY FORM THE BASIS FOR EVALUATING CLAIMS LAWYERS SAY BE SURE TO PROVIDE COMPLETE AND CLEAR DETAILS INCLUDING ANY LETTERS FROM YOUR BROKER PROMISING SNAZZY RETURNS OR SALES LITERATURE THAT DEEMPHASIZED RISKS AS IMPORTANT INCLUDE DETAILS ABOUT MATTERS YOU WEREN'T TOLD ABOUT THIS IS THE PLACE WHERE YOU SHOULD DETAIL OMISSIONS SUCH AS NOT RECEIVING THE TELLALL DOCUMENT KNOWN AS THE PROSPECTUS OR NOT BEING TOLD THE PARTNERSHIPS WERE ILLIQUID NOT EASILY RESOLD IN THE SECONDARY MARKETPLACE ANYTHING THAT YOU WEREN'T TOLD THAT WOULD HAVE LED YOU TO BACK AWAY FROM BUYING THE PARTNERSHIPS SHOULD BE INCLUDED HERE LAWYERS SAY INVESTMENT HISTORY ONE QUESTION ASKS WHETHER CLIENTS HAVE EVER INVESTED IN A WIDE RANGE OF INVESTMENTS SINCE 1975 THIS COULD BE TRICKY IF YOU WERE A 55YEAROLD DOCTOR IN 1976 AND YOU BOUGHT RISKY STOCKS BUT WANTED SAFETY FOR RETIREMENT IN BUYING PARTNERSHIPS IN 1986 YOU SHOULD INCLUDE A NOTE TO THAT EFFECT OTHERWISE IT COULD LOOK LIKE YOU WERE USED TO BUYING RISKY INVESTMENTS AND SHOULD HAVE KNOWN ABOUT THE INHERENT PITFALLS IN PARTNERSHIPS LAWYERS SAY LAWYERS SAY THERE ARE OPTIONAL QUESTIONS INVESTORS SHOULD BE WARY OF THESE INCLUDE QUESTIONS ON YOUR OCCUPATION WHEN YOU BOUGHT YOUR EARLIEST PARTNERSHIP AND YOUR CURRENT OCCUPATION ONLY RESPOND TO THE QUESTIONS IF IT BUTTRESSES YOUR CASE TO DO SO IF YOU WERE SAY A FARMER WHEN YOU BOUGHT THE PARTNERSHIPS AND NOW ARE A MICROBIOLOGIST DON'T COMPLETE THE QUESTION LAWYERS SAY BUT YOU SHOULD ANSWER IF YOU WERE A DOCTOR AND NOW ARE RETIRED AND LIVING ON A FIXED INCOME SOME INVESTORS ALREADY HAVE RECEIVED AND RETURNED THE CLAIMS FORMS WHICH ARE PROCESSED AT A BAREBONES PRUDENTIAL BUILDING IN LOWER MANHATTAN MORE THAN 100 EMPLOYEES INCLUDING 50 ANALYSTS STAFF A WAR ROOM ON THE FOURTH FLOOR THAT HANDLES THE CLAIMS AS THE FORMS COME IN PRUDENTIAL EMPLOYEES ENTER THE INFORMATION INTO COMPUTERS THEY THEN CALL THE FORMS UP ON A SCREEN AND MATCH THEM UP WITH CLAIMS DATA HELD BY THE FIRM THIS MEANS IT WILL BE DIFFICULT FOR INVESTORS TO GET AWAY WITH OVERSTATING CLAIMS ANYONE WHO MISSTATES ANY OF THIS INFORMATION AND LIES ABOUT IT HAS A GREAT CHANCE OF GETTING CAUGHT AND JUSTIFIES PRU OFFERING THEM VIRTUALLY NOTHING SAYS MR PAGE PRIVATELY PRUDENTIAL EXPECTS THAT SOME INVESTORS WILL INDEED FUDGE THEIR CLAIMS WHICH COULD BE GROUNDS FOR REJECTION THERE WILL BE PEOPLE TRYING TO DEFRAUD US BUT I DOUBT THAT MOST WILL SAYS GARRY LISCHIN A PRUDENTIAL SENIOR VICE PRESIDENT AND SENIOR COUNSEL WHO IS SPEARHEADING THE CLAIMS PROCESS DON'T WORRY IF YOU'RE UNSURE OF SOME ANSWERS HOWEVER IN A RECENT LETTER TO INVESTORS MR POLLACK SAID IF THE INFORMATION AVAILABLE TO YOU IS INCOMPLETE OR IF YOU CANNOT REMEMBER SOME THINGS PLEASE DO YOUR BEST YOU MAY USE APPROXIMATIONS AND ESTIMATES IF YOU CANNOT ANSWER A QUESTION YOU MAY OMIT IT 9312280045 931228 SHORT INTEREST HIGHLIGHTS NASDAQ ISSUES THE SHORT INTEREST RATIO IS THE NUMBER OF DAYS IT WOULD TAKE TO COVER THE SHORT INTEREST IF TRADING CONTINUED AT THE AVERAGE DAILY VOLUME FOR THE MONTH 9312280044 931228 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED OCTOBER 1 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER GULF POWER CO WILL REDEEM ON JAN 24 1994 THE FOLLOWING FIRST MORTGAGE BONDS 4 DUE 1994 AND 6 DUE 1996 CHASE MANHATTAN BANK NEW YORK IS TRUSTEE MISSISSIPPI POWER CO WILL REDEEM ON JAN 24 1994 THE FOLLOWING FIRST MORTGAGE BONDS 4 3/4 DUE JULY 1 1995 AND 6 DUE AUG 1 1996 MORGAN GUARANTY TRUST CO NEW YORK IS TRUSTEE 9312280043 931228 INTERNATIONAL BRIEF TOSHIBA CORP PACT IS SET WITH SAMSUNG TO JOINTLY DEVELOP CIRCUITRY JAPAN'S TOSHIBA CORP AND KOREA'S SAMSUNG ELECTRONICS CO HAVE AGREED TO JOINTLY DEVELOP INTEGRATED CIRCUITS THAT DRIVE LIQUID CRYSTAL DISPLAYS A SPOKESMAN FOR THE JAPANESE ELECTRICALMACHINERY MAKER SAID BOTH COMPANIES WILL ADOPT COMMON SPECIFICATIONS AND ACT AS ORIGINALEQUIPMENT SUPPLIERS FOR ONE ANOTHER THE TOSHIBA SPOKESMAN SAID HE SAID TOSHIBA AND SAMSUNG AGREED TO THE VENTURE TO MEET DEMAND FOR LESSEXPENSIVE STANDARDIZED DRIVER ICS GIVEN THE RAPID GROWTH OF THE MARKET FOR LCDS THE COMPANIES SAID THEY PLAN TO COMPLETE JOINT DEVELOPMENT BY THE SUMMER THEN INTRODUCE THE PRODUCT UNDER THEIR INDIVIDUAL BRAND NAMES 9312280042 931228 MARKETING & MEDIA MARKETSCAN ARM & HAMMER IS LOSING LEAD IN BAKINGSODA TOOTHPASTE SALES BY GABRIELLA STERN ARM & HAMMER THE BRAND MANY CONSUMERS EQUATE WITH BAKING SODA ISN'T KEEPING PACE WITH THE BAKINGSODA TOOTHPASTE CATEGORY'S RAPID GROWTH ALTHOUGH DOLLAR SALES IN THE BAKINGSODA CATEGORY GREW 66 IN SUPERMARKETS DRUGSTORES AND MASS MERCHANDISERS IN THE THREEMONTH PERIOD ENDED OCT 31 ARM & HAMMER'S SALES INCHED UP ONLY 2 ACCORDING TO INFORMATION RESOURCES INC'S TOWNEOLLER & ASSOCIATES SUBSIDIARY SALES OF ALL TOOTHPASTE WITH AND WITHOUT BAKING SODA GREW 3 DURING THE PERIOD THREATENING ARM & HAMMER'S NO 1 SPOT IN THE NEARLY 300 MILLION MARKET ARE PROCTER & GAMBLE CO'S CREST COLGATEPALMOLIVE CO'S COLGATE AND UNILEVER NV'S MENTADENT ALL OF WHICH ARE SPENDING HEAVILY TO ADVERTISE AND PROMOTE BAKINGSODA TOOTHPASTES P&G IS DOING ESPECIALLY WELL AFTER A LATE ENTRY INTO THE MARKET IT SHIPPED CREST WITH BAKING SODA LAST JANUARY MORE THAN A YEAR AFTER COLGATE LAUNCHED ITS BAKINGSODA TOOTHPASTE IN OCTOBER P&G ROLLED OUT A TARTARCONTROL VERSION OF CREST WITH BAKING SODA THE RACE TO GET INTO BAKINGSODA TOOTHPASTE IS PROVING TO BE A MIXED BLESSING FOR BIG BRANDS HOWEVER BECAUSE THE COMPANIES ARE TO SOME EXTENT CANNIBALIZING THEIR BRANDS OF TOOTHPASTE THAT DON'T HAVE BAKING SODA FOR EXAMPLE WHILE SALES OF CREST BAKINGSODA TOOTHPASTES ACCELERATED IN THE RECENT THREEMONTH PERIOD SALES OF SEVERAL OTHER CREST VARIETIES HAVE FALLEN ACCORDING TO TOWNEOLLER WHAT'S HAPPENED TO COLGATE AND CREST IS THAT AS THE BAKINGSODA SEGMENT HAS GROWN THEIR BASE BUSINESS IS SLIGHTLY DOWN SAYS A TOOTHPASTE INDUSTRY EXECUTIVE OVERALL TOWNEOLLER SAYS SALES OF ALL CREST TOOTHPASTES WERE UP 8 IN THE THREEMONTH PERIOD WHILE SALES OF ALL COLGATE TOOTHPASTES WERE DOWN 9 COLGATE BAKING SODA IS STILL GROWING BUT HAS LOST MARKET SHARE IN RECENT MONTHS PRIMARILY TO CREST WITH BAKING SODA BUT NIGEL BURTON GENERAL MANAGER OF COLGATEPALMOLIVE'S US ORALCARE BUSINESS THINKS COLGATE WILL BE HELPED BY THE INTRODUCTION THIS MONTH OF COLGATE BAKING SODA WITH TARTAR CONTROL COLGATE PLANS TO SPEND 10 MILLION TO MARKET THE NEW PRODUCT IN THE FIRST QUARTER OF 1994 THE COMPANY ALSO IS INTRODUCING ULTRA BRITE BAKING SODA WHICH WILL BE POSITIONED AS A LOWPRICED BRAND WE'RE GOING TO SEE SOME MOMENTUM COMING BACK MR BURTON SAYS MENTADENT WHICH CONTAINS BAKING SODA AND PEROXIDE HAS SHOWN RAPID GROWTH SINCE ITS NATIONAL ROLLOUT IN SEPTEMBER THANKS TO A FAT MARKETING BUDGET THE BRAND WHICH WAS AVAILABLE ONLY IN THE NORTHEAST FOR TWO YEARS HAS POSITIONED ITSELF AS A PREMIUMPRICED PRODUCT WITH SUPERIOR CLEANING ABILITIES IT COMES IN A DISPENSER WITH TWO CHAMBERS ONE OF WHICH PUMPS BAKING SODA THE OTHER PEROXIDE WE'RE GOING TO SPEND VERY SIGNIFICANTLY BEHIND IT SAYS GARY FRASER CATEGORY MANAGER FOR ORAL CARE AT UNILEVER'S CHESEBOROUGHPOND'S USA ALTHOUGH AVAILABLE FOR ONLY THREE MONTHS MENTADENT HAS BEEN TARGETED BY CREST TELEVISION ADS WHICH SAY BAKING SODA AND PEROXIDE HAVEN'T BEEN PROVEN TO DO ANYTHING SPECIAL FOR TEETH MR FRASER SAYS I'M NOT SURE I UNDERSTAND WHY CREST IS CRITICIZING THE EFFECTIVENESS OF BAKING SODA WHILE MARKETING ITS OWN BAKINGSODA TOOTHPASTE P&G HAD NO COMMENT WILLIAM EGAN PRESIDENT OF THE ARM & HAMMER UNIT OF CHURCH & DWIGHT CO ACKNOWLEDGES THAT BIG BRANDS ARE GIVING ARM & HAMMER DENTAL CARE WHICH ALSO COMES IN A TARTARCONTROL VERSION A HARD TIME BUT HE NOTES THAT THE BRAND STILL IS FAR AHEAD OF THE OTHERS IN TOTAL SALES WHAT THE COMPETITION'S DOING IS BUILDING BAKINGSODA SALES AND THAT'S NOT ALL BAD BECAUSE WE'RE SEEN AS THE BAKINGSODA COMPANY MR EGAN SAYS MORE IMPORTANT WE'VE CONTINUED TO HOLD ON TO A PREMIUM PRICE WHICH IS 30 TO 35 HIGHER THAN CREST WITH BAKING SODA INDEED SAYS COLGATE'S MR BURTON THE PRICING IN THIS SEGMENT IS INCREDIBLY INTERESTING THE CATEGORY HAS APPROXIMATELY FOUR TIERS HE NOTES WITH LOWPRICE BRANDS LIKE ULTRA BRITE AT THE BOTTOM CREST IN THE MIDDLE COLGATE AND ARM & HAMMER SLIGHTLY HIGHER AND MENTADENT AT THE TOP ALL OF WHICH SUGGESTS THERE'S MORE TO THE MARKETING THAN JUST PRICE MR BURTON SAYS DENTISTS ARE AT A LOSS TO EXPLAIN THE POPULARITY OF THE STUFF THERE ARE NO SCIENTIFIC TESTS PROVING THAT BAKING SODA IS BETTER FOR THE TEETH THAN REGULAR TOOTHPASTE SAYS KENNETH BURRELL ACTING SCIENTIFIC AFFAIRS DIRECTOR AT THE AMERICAN DENTAL ASSOCIATION NONETHELESS HE SAYS MANY DENTISTS RECOMMEND BAKINGSODA TOOTHPASTE POSSIBLY HOPING PATIENTS WILL BRUSH MORE OFTEN BECAUSE THEY PREFER THE TASTE AND TEXTURE THOSE KINDS OF THINGS MAKE BRUSHING A NOTUNPLEASANT EXPERIENCE DR BURRELL SAYS THE BAKINGSODA MYSTIQUE IS SO STRONG IN FACT THAT JOHNSON & JOHNSON HAS ROLLED OUT A BAKINGSODA DENTAL FLOSS 9312280040 931228 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 3/16 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 3 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 333 30 DAYS 331 60 DAYS 330 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 263 TWO MONTHS 263 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 323 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 TREASURY BILLS RESULTS OF THE MONDAY DECEMBER 27 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A 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 271 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9312280039 931228 EXCOP HUNTS DOWN PETTY INSURANCE CHEATS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL AS AN EXCOP LOUIS PARISI KNOWS THAT MOST PROSECUTORS HAVE BETTER THINGS TO DO THAN CHASE NICKELANDDIME INSURANCE FRAUD THERE'S NO ROOM IN THE GRAYBAR HOTEL FOR SMALL TIMERS SAYS MR PARISI WHO HEADS THE FRAUD UNIT OF THE NEW JERSEY DEPARTMENT OF INSURANCE USING SLANG FOR JAIL WHO WOULD YOU RATHER HAVE IN THERE SOMEONE WHO COMMITTED INSURANCE FRAUD OR THE GUY WHO WOULD CHOP OFF YOUR HEAD BUT WHEN SOMEONE INFLATES A CLAIM ON A FENDER BENDER YOU PAY THE BILL SO TOO WHEN A DOCTOR INFLATES A BILL SO A PATIENT DOESN'T HAVE TO PAY THE DEDUCTIBLE OR WHEN A POLICEMAN TWISTS HIS KNEE PLAYING BASKETBALL AND CLAIMS AN ONTHEJOB INJURY TO GET WORKERS' COMPENSATION AFTER HURRICANE ANDREW INSURANCE COMPANIES GOT CALLS FROM HOMEOWNERS WHO CLAIMED TO HAVE FREEZERS FULL OF OMAHA STEAKS THAT WOULD QUALIFY THEM FOR A LARGER SETTLEMENT UNDER THE CONTENT LOSS PROVISION OF THEIR POLICY ACCORDING TO COMMONLY CITED ESTIMATES INSURANCE COMPANIES PAY 100 BILLION A YEAR IN FRAUDULENT CLAIMS AND WHILE MANY INSURANCE COMPANIES LET SMALLTIME FRAUD FALL THROUGH THE CRACKS SO DO MOST PROSECUTERS INSURANCE COMPANIES TYPICALLY PASS THE COSTS TO POLICYHOLDERS RAISING THE COST OF INSURANCE TO CONSUMERS BY 10 OR MORE THEY SAY SINCE 1983 NEW JERSEY HAS GIVEN ITS INSURANCE DEPARTMENT AUTHORITY TO INVESTIGATE AND LEVY FINES AGAINST SMALLTIME INSURANCE CHEATS WITHOUT HAVING TO CALL IN PROSECUTORS THE RESULT IN 1993 THE DEPARTMENT INVESTIGATED 24300 INCIDENTS COLLECTED 78 MILLION IN PENALTIES AND RECOVERED 20 MILLION IN CLAIMS FOR INSURANCE COMPANIES THE NEW JERSEY PROGRAM RUN BY MR PARISI SINCE 1988 HAS BEGUN TO ATTRACT IMITATORS NEW YORK STATE'S INSURANCE DEPARTMENT RECENTLY WON AUTHORITY TO ASSESS CIVIL PENALTIES FOR CLAIMS FRAUD AND EXPECTS TO START COLLECTING FINES IN 1994 DENNIS JAY EXECUTIVE DIRECTOR OF THE WASHINGTONBASED COALITION AGAINST INSURANCE FRAUD SAYS AS MANY AS FIVE MORE STATES COULD SET UP PROGRAMS IN THE COMING YEAR FOR MR PARISI 49 YEARS OLD NO OFFENSE IS TOO SMALL WHEN A 60YEAROLD WOMAN IN MERCER COUNTY NJ GOT CAUGHT PADDING HER DOCTOR BILL BY 30 LAST YEAR SHE HAD TO PAY BACK THE INSURANCE COMPANY SHE ALSO HAD TO PAY A 1000 FINE WITH THE THREAT OF A LAWSUIT HANGING OVER HER HEAD SHE PAID SHE WON'T BE TRYING THAT AGAIN SAYS MR PARISI MR PARISI HAS ALSO TARGETED RATE EVADERS MOTORISTS WHO LIVE OUT OF STATE BUT INSURE THEIR CARS IN NEW JERSEY TO SAVE ON PREMIUMS IN 1993 MR PARISI'S DEPARTMENT CAUGHT 7092 EVADERS BY SCOURING THE STREETS OF NEW YORK PHILADELPHIA AND CONNECTICUT AND VIDEOTAPING PARKED CARS WITH NEW JERSEY LICENSE PLATES RECENTLY MR PARISI FINED 107 PEOPLE CAUGHT IN A STING OPERATION AIMED AT PEOPLE WHO FALSELY CLAIM TO HAVE BEEN INJURED IN BUS ACCIDENTS A GROWING FORM OF INSURANCE FRAUD THE PERPETRATORS SEE OR HEAR ABOUT A BUS ACCIDENT JUMP ABOARD THE BUS AND FILE A POLICE REPORT THEN THEY TAKE THEIR CASE TO AN ACCOMMODATING ATTORNEY AND DOCTOR WHO WILL DIAGNOSE SAY A BACK INJURY IN BUILDING A CASE THE STATE STAGED SEVERAL BUS ACCIDENTS OVER THREE YEARS AND VIDEOTAPED THE JUMPERS GETTING ON BOARD FOR THOSE WHO ARE CAUGHT THE PENALTIES CAN BE STEEP THE FIRST OFFENSE CARRIES A MAXIMUM FINE OF 5000 WITH THE AMOUNTS RISING FOR SUBSEQUENT VIOLATIONS IN THE CASE OF THE RATE EVADERS DRIVERS WERE FINED FOR AS MANY AS SIX OFFENSES RANGING FROM LYING TO THE INSURANCE COMPANY TO ILLEGALLY REGISTERING THEIR CARS TO A FALSE ADDRESS THE 9 MILLION ANNUAL COST OF THE EFFORT INCLUDING SALARIES FOR 132 INVESTIGATORS IS BORNE BY ALL INSURANCE COMPANIES WHO DO BUSINESS IN NEW JERSEY THEY PAY A SMALL TAX BASED ON THEIR PREMIUMS THE COLLECTED FINES GO TOWARD DEFRAYING LOSSES IN A STATE PROGRAM THAT SELLS CAR INSURANCE TO DRIVERS UNABLE TO FIND INSURANCE FROM COMMERCIAL CARRIERS CRITICS OF THE NEW JERSEY PROGRAM SAY THE USE OF FINES AS A REVENUE RAISER INSTEAD OF JUST AS A DETERRENT CAN LEAD TO ABUSIVE ENFORCEMENT THAT CRITICISM IS AT THE HEART OF A LAWSUIT FILED EARLIER THIS YEAR AGAINST THE STATE BY A GROUP OF NEW JERSEY CHIROPRACTORS ACCORDING TO THE LAWSUIT FILED IN FEDERAL COURT IN CAMDEN THE STATE RECEIVED INFORMATION ABOUT CHIROPRACTORS SUBMITTING BOGUS CLAIMS AND WITHOUT VERIFYING THE ALLEGATIONS SENT LETTERS TO THE CHIROPRACTORS ORDERING THEM TO PAY FINES OR RISK PROSECUTION THE CHIROPRACTORS WHO CLAIM INNOCENCE ARGUE THE STATE IS TRYING TO EXTORT MONEY IN THEORY EVERYBODY HAS A RIGHT TO FIGHT THESE THINGS SAYS HOUSTON ATTORNEY RICHARD JAFFE WHO REPRESENTS THE CHIROPRACTORS BUT USUALLY IT'S CHEAPER TO SETTLE THE NEW JERSEY INSURANCE DEPARTMENT DENIES THE EXTORTION ALLEGATIONS AND IS FIGHTING THE LAWSUIT PROSECUTORS ALSO HAVE DOUBTS ABOUT THE EFFORT THIS DOESN'T PROMOTE REAL DETERRENCE SAYS SEAN O'SHEA ASSISTANT US ATTORNEY FOR THE EASTERN DISTRICT OF NEW YORK SOME OF THESE CASES SEEM TO BE DIRECTED AT GRABBING HEADLINES HE BELIEVES ONLY THE THREAT OF JAIL CAN DETER FRAUD FRANK DOOLITTLE WHO HEADS THE ANTIFRAUD DIVISION FOR THE FLORIDA INSURANCE DEPARTMENT BELIEVES CONSUMERS ARE BETTER SERVED WHEN THE STATE ATTACKS MAJOR KINDS OF INSURANCE FRAUD SUCH AS SHELL COMPANIES THAT COLLECT PREMIUMS BUT DISAPPEAR WHEN CLAIMS COME IN HE SAID CLAIMS FRAUD WOULD FALL SHARPLY IF INSURANCE COMPANIES WERE LESS WILLING TO PASS THE COST TO POLICYHOLDERS I THINK THE INDUSTRY HAS AN OBLIGATION TO POLICE ITS OWN CLAIMS HE SAYS THE INSURANCE COMPANIES AREN'T UNIFORMLY PLEASED WITH THE PROGRAM MAINLY BECAUSE THEY'RE TAXED TO PAY FOR IT BUT SOME COMPANIES ENCOURAGED BY THE MONEY THEY HAVE RECOVERED HAVE BEGUN TO COME AROUND THERE ARE A LOT OF STATES THAT COULD BENEFIT FROM THIS SAYS ADRIAN TOCKLIN EXECUTIVE VICE PRESIDENT OF CONTINENTAL CORP DESPITE THE CRITICISM THE EFFORT HAS ADDED LUSTER TO MR PARISI'S ALREADY INTERESTING CAREER THE SON OF A US CUSTOMS AGENT MR PARISI SERVED 22 YEARS WITH THE NEW JERSEY STATE POLICE HIS ASSIGNMENTS HAVE INCLUDED INVESTIGATING THE CIRCUMSTANCES OF KAREN ANNE QUINLAN'S COMA AND REINVESTIGATING THE LINDBERGH KIDNAPPING THE LATTER CASE WON THE ATTENTION OF CONGRESS AND LED HIM TO HELP INVESTIGATE THE ASSASSINATIONS OF JOHN F KENNEDY AND MARTIN LUTHER KING JR LATELY HE HAS BEEN TRYING TO PERSUADE INSURANCE AND LAW ENFORCEMENT GROUPS THAT INSURANCE DEPARTMENT FRAUD UNITS SHOULD FOLLOW THE NEW JERSEY APPROACH WITHOUT THE ABILITY TO BRING FINES THEY ARE DOOMED TO FAILURE HE SAYS 9312280038 931228 FLEAS START TO YIELD THEIR BLOODY SECRETS TO DOGGED RESEARCH THEY CAN LEAP HIGH TO SCALE A VICTIM BUT CAN'T ABIDE INSECT GROWTH REGULATOR BY ELLEN GRAHAM STAFF REPORTER OF THE WALL STREET JOURNAL CONSIDER THE FLEA A TRIFLE PERHAPS BARELY A CONTENDER IN THE EVERLENGTHENING LIST OF VEXING DAILY NUISANCES BUT DON'T TELL THAT TO RUTH FELDMAN OF WESTPORT CONN AS SHE DESCRIBES THE WAR SHE WAGES AGAINST THE PARASITES RAVAGING HER HIMALAYAN CAT ALLEGRA YOU HAVE TO HAVE THE CAT OUT WHEN YOU BOMB THE HOUSE SHE GOES TO THE VET FOR THE DAY TO BE DIPPED WHILE I'M AT WORK I SET THE BOMB OFF JUST BEFORE I WALK OUT THE DOOR AND TAKE THE CAT WITH ME IN ONE OF LIFE'S LITTLE INJUSTICES ALLEGRA MUST ENDURE HER DIPPINGS EVEN THOUGH MS FELDMAN KNOWS THE FLEAS COME FROM CLYDE A GOLDEN RETRIEVER WHO UNLIKE HER CAT ROAMS OUTDOORS AS LONG AS I LIVE IN A HOUSE WITH A DOG I REALLY FEEL MY EFFORTS ARE WASTED MS FELDMAN LAMENTS BY CONTRAST DOG BREEDER JOANNE ALSTEDE MAINTAINS THAT WHENEVER HER HOUSE HAS BEEN INVADED THE CAUSE WAS A CAT SHE KEEPS FLEAS AT BAY IN HER OUTDOOR DOG KENNELS BY PERIODICALLY SPENDING 150 TO SPRAY HER CALIFON NJ PROPERTY A PROCEDURE REQUIRING HER TO BRING HER NINE ST BERNARDS INDOORS FOR SEVERAL HOURS TO PROTECT THEM FROM THE PESTICIDE FLEAS ARE BIG TROUBLE AND BIG BUSINESS THESE DAYS THERE IS EXCITEMENT IN FLEACONTROL CIRCLES AS FLEAS REVEAL THEIR SECRETS TO RESEARCHERS AND BREAKTHROUGHS EMERGE FROM THE LABORATORY IN SIMPLER TIMES WHEN DOGS SCRATCHED UNOBTRUSIVELY IN DOGHOUSES AND CATS MORE OR LESS FENDED FOR THEMSELVES RIDDING THEM OF FLEAS MEANT DUSTING THEM WITH A 50CENT BOX OF FLEA POWDER NOWADAYS FLEAS EAT THAT STUFF FOR BREAKFAST SAYS JIM HUMPHRIES A DALLAS VETERINARIAN WHO HAS A SYNDICATED RADIO SHOW DR JIM'S ANIMAL CLINIC MOREOVER FLEAS' ANIMAL HOSTS OFTEN COZY UP TO PEOPLE IN A WAY THEY DIDN'T IN GENERATIONS PAST PETS ARE NO LONGER AN ANCILLARY PIECE OF CONSUMERS' LIVES SAYS KAY SCHWICHTENBERG A CHICAGO EXECUTIVE AT A SANDOZ CORP UNIT THAT MAKES FLEACONTROL PRODUCTS SO PEOPLE ARE MORE APT TO NOTICE FLEAS THAT IS AN UNDERSTATEMENT AMERICANS NOW SPEND 1 BILLION A YEAR ON COLLARS DIPS SPRAYS FOGGERS SHAMPOOS PILLS TRAPS AND EVEN TINY PESTICIDEIMPREGNATED BANDANAS TO KILL THE CAT FLEA CTENOCEPHALIDES FELIS FELIS THE SPECIES THAT PREYS ON BOTH DOGS AND CATS DOG FLEAS EXIST BUT ARE RARELY FOUND ON DOGS IN NORTH AMERICA AT THE LATESUMMER ZENITH OF FLEA SEASON SANDOZ GETS 7000 DISTRESS CALLS A WEEK ON ITS FLEA HOT LINE AMONG THE MORE MEMORABLE A STUBBORN INFESTATION AT A FACILITY THAT TRAINS CAPUCHIN MONKEYS TO ASSIST DISABLED PEOPLE AND A WOMAN WHO WAS SPENDING 1000 A YEAR TO FIGHT FLEAS ON HER BEAGLE FLEAS ARE ALSO THE BREADANDBUTTER OF VETERINARY MEDICINE FLEA SALIVA CONTAINS AN ANTICOAGULANT THAT CAUSES FLEABITE DERMATITIS THE MOST COMMON ILL VETS TREAT I SPEND A TON OF TIME ON FLEAS SAYS HELEN POWER A VETERINARY DERMATOLOGIST IN LOS GATOS CALIF I MAKE MY CAR PAYMENT MY HOUSE PAYMENT AND EVERY OTHER KIND OF PAYMENT ON FLEAS PATIENTS GET AN INITIAL CONSULTATION AFTER WHICH SHE OFTEN RECOMMENDS A STRATEGY THAT STARTS WITH THE COMPULSIVE PHASE AND TAPERS OFF TO THE MAINTENANCE PHASE SHE ESTIMATES THAT 80 OF HER ANIMAL PATIENTS SUFFER FROM FLEA ALLERGIES AND THERE IS EVEN A RISK OF FLEA ANEMIA WHICH SO DEPLETES A PET'S BLOOD SUPPLY THAT IT CAN BE FATAL THE NATION'S FOREMOST SPECIALIST IN FLEA BIOLOGY AND CONTROL IS PROBABLY MICHAEL DRYDEN A VETERINARY PARASITOLOGIST AT KANSAS STATE UNIVERSITY WHO IN THE MID1980S SET FLEA EPIDEMIOLOGY ON ITS EAR TILL THEN NOTIONS OF CATFLEA BEHAVIOR WERE EXTRAPOLATED FROM RESEARCH ON THE ORIENTAL RAT FLEA AS DR DRYDEN BEGAN STUDYING THE CAT FLEA HE REALIZED THAT EVERYTHING I'D BEEN TAUGHT ABOUT FLEAS WAS WRONG IT HAD BEEN BELIEVED FOR EXAMPLE THAT FLEAS HITCHHIKE ON DOGS BRIEFLY JUMPING OFF TO LAY THEIR EGGS IN FACT THE CAT FLEA RARELY LEAVES THE HOST ANIMAL VOLUNTARILY FEMALES DEPOSIT EGGS ON THE PET AND THE EGGS ROLL OFF AND HATCH INTO LARVAE WHICH SPIN COCOONS AND LODGE IN CARPETING THE BEST THING WE EVER DID FOR FLEAS WAS PRODUCE NYLON DEEPPILE CARPET DR DRYDEN SAYS FLEAS LOVE IT FEMALE CAT FLEAS ARE RAVENOUS BLOOD FEEDERS HE SAYS CONSUMING MANY TIMES THEIR BODY WEIGHT IN BLOOD DAILY DR DRYDEN RAISES OVER 10000 FLEAS A WEEK IN HIS LAB NURSING EGGS ON A BLEND OF CAT CHOW DRIED BEEF BLOOD BREWER'S YEAST AND SAND AT SANDOZ RESEARCHERS USE A TESTTUBE DEVICE KNOWN AS AN ARTIFICIAL DOG NEW UNDERSTANDING LED TO THE REALIZATION THAT IT ISN'T ENOUGH TO SPRITZ ROVER WITH A PESTICIDE THAT MERELY KILLS MATURE FLEAS NOW VETS RECOMMEND A BLITZKRIEG THE NEUTRON BOMBS OF MODERN FLEA CONTROL ARE INSECT GROWTH REGULATORS HORMONES THAT DECIMATE THE LARVAE BEFORE THEY MATURE YET AREN'T AS TOXIC AS PESTICIDES SANDOZ SELLS SPRAYS COLLARS AND HOUSE FOGGERS CONTAINING IGRS THROUGH VETS AND PET STORES HARTZ MOUNTAIN CORP IS BRINGING OUT A SUPERMARKET LINE THERE'S ALSO A PLUGIN FLEA TRAP THAT LOOKS LIKE A LARGE PLASTIC MUSHROOM FLEAS GRAVITATE TO A LIGHT BULB UNDER ITS DOME THAT MIMICS A DOG'S BODY HEAT WE GOT 3118 FLEAS IN ONE WEEK ON ONE CAPTURE PAD SAYS PETER DIFFENDERFER MARKETING DIRECTOR AT THE MAKER AGROBIOTECH CORP IN WOODINVILLE WASH EXTERMINATORS ARE ANOTHER APPROACH FLEABUSTERS FROM RX FOR FLEAS INC OF FORT LAUDERDALE FLA PUTS DOWN A LAYER OF SODIUM POLYBORATE IN CARPETS AND CRACKS BUT NO CONTROL REGIMEN SHOULD NEGLECT THE FLEAS LURKING OUTSIDE BIOSYS INC IN PALO ALTO CALIF OFFERS A PRODUCT CONTAINING NEMATODES TINY WORMS THAT SEEK OUT AND KILL FLEA LARVAE WHEN SPRAYED ON LAWNS DR HUMPHRIES THE RADIO VET SAYS MODERN FLEA CONTROL CAN BE A YEARROUND CHORE AND SETTLING FOR HALFMEASURES IS FLIRTING WITH DISASTER HE SKETCHES THE THREAT THIS WAY AN UNTREATED PET SUPPORTS A COLONY OF 100 FLEAS A FEMALE LAYS 25 EGGS A DAY OR ROUGHLY 2000 IN HER SIX TO EIGHTWEEK LIFE AND HERE'S THE BIG ONE HE SAYS SIXTY FEMALE FLEAS COULD YIELD 120000 EGGS DURING THAT LIFESPAN MOST OF THESE DRY UP UNHATCHED BUT DR HUMPHRIES TELLS OF INFESTATIONS SO BAD PEOPLE HAD TO RIP UP THE INTERIORS OF THEIR HOMES FUMIGATE AND START ANEW WITH PREVENTIVE MAINTENANCE JANET FIRMERY OF DARIEN CONN ONCE RETURNED FROM VACATION TO FIND HER HOUSE OVERRUN WE HAD TO TAKE UP EVERY PIECE OF CARPETING THAT NIGHT OR WE WOULDN'T HAVE BEEN ABLE TO STAY IN THE HOUSE SHE SAYS SUCH HORRORS DON'T SURPRISE FLEA EXPERTS FLEAS LIE DORMANT AND RAVENOUS IN A VACANT HOUSE AND WILL POUNCE UP TO 10 INCHES IN RESPONSE TO THREE STIMULI LIGHT VIBRATION AND EXHALATION OF CARBON DIOXIDE WHEN YOU WALK INTO A HOUSE THAT'S BEEN CLOSED UP BOOM THERE THEY ARE SAYS DR HUMPHRIES ELIZABETH MARSHALL THOMAS AUTHOR OF THE HIDDEN LIFE OF DOGS ONCE FACED THIS IN NAMIBIA WHEN SHE VENTURED INTO AN ABANDONED HYENA DEN I WAS SWARMED SHE RECALLS HYENAS SHE SAYS HAVE EVOLVED A NONONSENSE APPROACH TO FLEA CONTROL THAT BESIEGED PET OWNERS MIGHT ENVY WHEN THEIR DENS BECOME OVERRUN HYENAS SIMPLY PICK UP AND MOVE 9312280037 931228 LETTERS TO THE EDITOR WHEN BANK LOANS ARE MORALLY CORRECT IN HIS DEC 2 EDITORIAL PAGE OPINION PIECE RACISM NO GOOD BUSINESS SENSE STEVEN SALERNO SAID THAT ANTIREDLINING STATUTES DEPRIVE BANKS AND INSURANCE COMPANIES OF THE RIGHT TO MAKE ACTUARIAL DECISIONS BASED ON THEIR LOSS EXPERIENCE THIS STATEMENT IS FLATLY UNTRUE I WOULD LIKE TO KNOW EXACTLY WHICH PARAGRAPH OF THE COMMUNITY REINVESTMENT ACT HE THINKS IMPOSES SUCH A BURDEN ON LENDING INSTITUTIONS I KNOW OF NO BANKS THAT HAVE FAILED A CRA EXAM FOR NOT MAKING BAD OR RISKY LOANS THEY WILL RECEIVE LESS THAN SATISFACTORY REVIEWS HOWEVER WHERE THERE IS A CONSISTENT FAILURE OR DEFICIENCY IN LENDING TO THE SAME COMMUNITIES FROM WHICH THEY SO EAGERLY COLLECT DEPOSITS IN HIS CASUAL DISMISSAL OF THE HISTORICAL BASIS FOR THE ENTIRE ANTIREDLINING INITIATIVE MR SALERNO SHOWS AN IGNORANCE OF THE FACTS AS THEY HAVE BEEN PROVEN OVER AND OVER AGAIN THAT MINORITIES HAVE FREQUENTLY BEEN DENIED ON LOAN APPLICATIONS AS WELL AS MANY OTHER BUSINESS APPLICATIONS WHERE WHITES WITH THE SAME OR EVEN LESSER QUALIFICATIONS ARE ACCEPTED OR APPROVED CONTRARY TO HIS QUITE OFFENSIVE PORTRAYAL NO ONE HAS ASKED BANKS TO START HANDING OVER DEPOSITORS' MONEY TO DEADBEATS THEY ARE AND SHOULD BE REQUIRED TO LEND THE MONEY DEPOSITED IN THEIR INSTITUTIONS BACK TO THE PEOPLE WHO PUT IT THERE THIS IS NOT ONLY POLITICALLY CORRECT IT IS MORALLY CORRECT AMERICANS HAVE EVERY RIGHT TO EXPECT THEIR PUBLIC INSTITUTIONS TO PERFORM IN SUCH A MANNER 9312280036 931228 BUSINESS WORLD PAYROLL WAS PROBLEMATICAL AGAIN THIS YEAR BY TIM W FERGUSON FOR MOST AMERICANS 1993 WAS A RICHER YEAR THAN THE PREVIOUS FEW BUT STILL GRIM NEWS ON THE JOB FRONT HAUNTED MILLIONS THE US ECONOMY CONTINUES IN TRANSFORMATION REVISITING SOME OF THE STOPS THIS COLUMN MADE IN THE PAST 12 MONTHS IS A REMINDER OF THAT LAST AUGUST WE NOTED HOW HOSPITALS AROUND THE COUNTRY WERE FULL OF EMPTY BEDS AS THE COSTCONSCIOUSNESS TAKING HOLD IN MEDICINE WAS HASTENED BY HILLARYTALK AND MORE TANGIBLY BY CUTBACKS TO MEDICARE AND MEDICAID PROVIDERS SLACK DEMAND PLUS THE NEED TO BE POSITIONED JUST RIGHT FOR WHATEVER NATIONAL SYSTEM AWAITS HAS QUICKENED THE INDUSTRY'S CONSOLIDATION WITH THE JOINING OF MASSACHUSETTS GENERAL AND BRIGHAM AND WOMEN'S IN BOSTON BEING THE BIGGEST NEWS HOW MANY OF THE 42 MILLION FULLTIME HOSPITAL POSITIONS NATIONWIDE IN 1992 WILL BE GONE WHEN THE SHAKEOUT SUBSIDES UNLESS THOSE LOSING JOBS FIND NEW ONES IN THE MASSIVE BUREAUCRACY THE CLINTONS WISH TO CREATE THEY WILL HAVE TROUBLE MATCHING THEIR CURRENT WAGES ALREADY THE RUNUP IN NURSING SALARIES WHICH CONTRIBUTED TO LEAPING HEALTHCARE COSTS HAS STOPPED SOME SPECIALTIES ARE SEEKING LICENSURE SO AS TO QUALIFY FOR DIRECT REIMBURSEMENT UNDER ADMINISTERED MEDICINE NOTES BARBARA KREML OF THE AMERICAN HOSPITAL ASSOCIATION TRADITIONAL TEAM CARE ARRANGEMENTS BY CONTRAST MEAN SHARING IN A PRECARIOUS POT ALSO THERE'S FEAR OF LOWERRUNG STAFFERS BEING REASSIGNED TO TASKS NOW DONE BY SKILLED PERSONNEL YOU AREN'T SMILING NURSE RATCHED DENTAL HYGIENISTS SIMILARLY ARE LOOKING TO LICENSE THEMSELVES BUT A BILL TO MOVE IN THAT DIRECTION IN CALIFORNIA DISCUSSED HERE LAST JULY WAS DAMMED IN THE STATE SENATE BY DENTISTS IT HAD THE REDEEMING FEATURE OF ALLOWING THE TEETH CLEANERS TO GO TO SCHOOLS AND NURSING HOMES TO PRACTICE WITHOUT THE DRILLANDFILLERS WATCHING OVER THEM THE SPONSORING DEMOCRAT WILL TRY AGAIN IN '94 THE UNITED FOOD AND COMMERCIAL WORKERS SUBJECT OF GRUDGING RESPECT HERE IN FEBRUARY BECAME THE BIGGEST PRIVATESECTOR UNION IN THE US THIS FALL BY ABSORBING SOME DEPARTMENTSTORE BRETHREN AT A REPORTED 14 MILLION MEMBERS THE UFCW WOULD EXCEED THE TEAMSTERS A SPOKESMAN PREDICTS CONTINUED BATTLES WITH WALMART THE NATION'S SECOND LARGEST PRIVATE EMPLOYER AND KMART NEXT YEAR WHILE TESTING FOR OPPORTUNITIES TO ORGANIZE THOSE NONUNION GIANTS THE UFCW PLANS TO SPOTLIGHT THEIR GAPS IN MEDICALINSURANCE COVERAGE TO SUPPORT CLINTONCARE'S EMPLOYER MANDATES AND FINALLY IT SEEKS TO SPREAD SEXBIAS SUITS LIKE THOSE THAT HAVE STUNG SOME UNIONIZED WEST COAST GROCERS TO FLORIDA'S BIG NONUNION PUBLIX CHAIN THEY USED TO DISMISS SOUTHWEST AIRLINES AS A REGIONAL SPECIALTY CARRIER BUT WITH ITS RAPID GROWTH AND ACQUISITION OF A SALT LAKE CITY BASE WITH MORRIS AIR THIS MOLDBREAKER WILL TAKE ITS ACT TO ANOTHER BIG CHUNK OF THE COUNTRY SINCE WE LOOKED AT SOUTHWEST IN MARCH IT'S ADDED ABOUT 1000 WORKERS AND SHOULD PICK UP AT LEAST THAT MANY WITH MORRIS MEANWHILE THE AMERICAN AIRLINES LABORCOST STRATEGY MISFIRED WHEN CEO ROBERT CRANDALL INVITED A STRIKE FOR WHICH HE TURNED OUT TO BE UNPREPARED AND THEN HAD TO ACCEPT A TRUCE WITH HIS NOWRADICALIZED FLIGHT ATTENDANTS SOLIDARITY WON'T SECURE THEIR JOBS HOWEVER NOT IF THE CONCESSIONS OF ABOUT 1 BILLION A YEAR IN EXCESS BAGGAGE BY UNIONS AT COMPETITOR UAL UNITED ARE INDICATIVE OF THE UNDERLYING PROBLEM WITH CRIME IN A GROWTH MODE POLICE HAD LITTLE WORRY ABOUT HAVING THEIR BEAT STOLEN EVEN THOUGH COSTS OF LAW ENFORCEMENT SOARED SIXFOLD FROM 1970 TO 1990 PRIVATIZATION WAS AN OPTION EXPLORED IN A JUNE COLUMN ALREADY 65 BILLION IS BEING SPENT ANNUALLY ON NONGOVERNMENTAL SECURITY MEASURES ACCORDING TO BUSINESS WEEK BUT THE POLITICAL PULL OF THE BLUE BRIGADES IS UNDIMINISHED AN INCREASE IN CALIFORNIA SALES TAX PROPOSITION 172 WON EASILY IN NOVEMBER AFTER JUSTICE SYSTEM PERSONNEL FINANCED A TV AD BARRAGE FEATURING CLINT EASTWOOD'S VOICEOVER OUR ASKANCE GLANCE IN JUNE AT THE PUSH FOR BIGGER PUBLIC CONVENTION HALLS BY CITIES MIGHTY AND MIDDLING DID LITTLE TO DISCOURAGE THIS BINGE ECONOMIC DEVELOPMENT IS THE ELUSIVE QUEST MEANWHILE THE CRAVING FOR PROFESSIONAL SPORTS FRANCHISES IS WHETTING AMBITIONS FOR NEW STADIUMS SALES OR HOTEL TAXES ARE USUALLY RAISED WITH SCANT OBJECTIONS BUT OCCASIONALLY A TOWN REBELS IN PHOENIX AN UPROAR MAY FORCE THE CIVIC ESTABLISHMENT BACKING A DOMED BASEBALL PALACE TO BACK OFF THERE WAS NO RETREAT FOR ERROL SMITH THE BLACK LOS ANGELES RADIO TALKSHOW HOST WHO DISCOUNTED RIGHTLY THE TALK OF NEW RIOTS DURING SOME STORMY JUDICIAL PROCEEDINGS EARLIER THIS YEAR MR SMITH A CRITIC OF THE BLACK POLITICAL ESTABLISHMENT AND ADVOCATE OF SELFHELP FOR THE URBAN POOR ON HIS DAILY PROGRAM SENSES AMONG THE LEADERSHIP A LEVEL OF RESPECT THAT THIS MOVEMENT OR WAY OF THINKING IS GROWING SUCH AN ENTENTE IS NOT EVIDENT IN DENVER HOWEVER WHERE CONVENTIONEERING BLACK STATE LEGISLATORS FROM AROUND THE NATION DEMANDED THAT THE FEDERAL COMMUNICATIONS COMMISSION AND OTHERS REIN IN KEN HAMBLIN A BLACK RADIOCASTER AND NEWSPAPER COLUMNIST THERE HE IN TURN TELLS OFF ANYONE WHO MAKES EXCUSES FOR STREET CRIME AND THE WELFARE CULTURE THE LANGUAGE ISN'T ALWAYS POLITE BUT THE BLUNTNESS IS REFRESHING ANOTHER STRAIGHT TALKER IS MITCH DANIELS PRESIDENT OF NORTH AMERICAN DRUG OPERATIONS FOR ELI LILLY & CO HE FOLLOWED UP A SEPTEMBER ACCOUNT OF HIS SYMPATHETIC VIEWS ON MANAGED CARE WITH A NOTE STRESSING THAT HE PERSONALLY HAS PUSHED INDIVIDUALLY DIRECTED MEDISAVE ACCOUNTS AS AN ALTERNATIVE BUT THAT THIS FREERMARKET APPROACH HAS BEEN MARGINALIZED IN THE POLITICAL DEBATE ABOUT THAT HE IS UNFORTUNATELY ALL TOO CORRECT TO DATE WE REPORTED ON A MAY DAY INAUGURAL MEETING OF A GROUP OF DIRECTORS AND OFFICERS OF BANKS AND THRIFTS THAT HAVE BEEN ZEALOUSLY SUED AND PROSECUTED BY THE US GOVERNMENT BECAUSE THEIR LOANS WENT BAD THE GROUP GOT TOGETHER IN DALLAS IN THE FALL AND PLANS ANOTHER MAY DAY CONFERENCE THIS YEAR IN WASHINGTON MEANWHILE FOUNDER ED MORRIS WAS CONVICTED OF MAIL AND WIRE FRAUD IN THE FAILURE OF GERMANIA BANK IN ST LOUIS BUT AS HE AWAITS SENTENCING HE CONTINUES TO PUBLISH THE NEWSLETTER REGULATORY WATCHDOG FOR A COUPLE HUNDRED SUBSCRIBERS AND SAYS THE CAUSE HAS SHOWN UNEXPECTED STRENGTH NO LEGISLATIVE RELIEF IN SIGHT YET HOWEVER GORDON GETTY'S INTEREST IN A MUTUALFUNDBASED ALTERNATIVE MONEY ATTRACTED CONSIDERABLE INTEREST AFTER AN INTERVIEW WITH HIM APPEARED HERE IN MARCH A SPOKESWOMAN FOR THE BILLIONAIRE SAYS HE STILL IS TOYING WITH THE IDEA BUT HAS BEEN PREOCCUPIED BY ANOTHER OF HIS HOBBIES HIS MUSIC IS TO BE PERFORMED BY THE RUSSIAN NATIONAL ORCHESTRA EARLY NEXT YEAR AND FINALLY FROM THE SUBLIME TO THE RIDICULOUS RECALL THAT SUBSIDIZED RISK WAS RESPONSIBLE FOR MUCH OF THE DAMAGE DURING THE RECENT SOUTHERN CALIFORNIA FIRES IN THAT A STATEINSTIGATED INSURANCE POOL ENSURED PROPERTY COVERAGE FOR HOMEOWNERS BUYING OR BUILDING WHERE NATURE FORBIDS SUBSEQUENTLY WE LEARNED THAT FARMERS INSURANCE A UNIT OF BAT GROUP HAS BEEN ASSESSED THE HIGHEST AMOUNT OF ANY CARRIER BY THE SOCIALIZED CALIFORNIA FAIR PLAN BECAUSE IT WOULDN'T WRITE POLICIES OF ITS OWN IN THE DANGER ZONE THAT'S A FLAMINGLY PERVERSE INCENTIVE ONE OF MANY POLICIES ALONG WITH PEOPLE NEEDING WORK IN 1994 9312280035 931228 ADVERTISING THE LEAD BALLOON CAMPAIGNS OF 1993 BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL PETER S SEALEY FORMER MARKETING EXECUTIVE FOR COCACOLA TOLD AN ADVERTISING CONVENTION IN OCTOBER THAT MADISON AVENUE HAS BEEN CRANKING OUT DULL ROUTINE OVERTESTED COMMERCIALS AND PRINT EXECUTIONS LET'S HEAR IT FOR MR SEALEY WHILE NOT ALL ADVERTISING IN 1993 FELL FLAT MUCH OF IT WAS FORGETTABLE GENERAL UNHAPPINESS WITH THE FRUITS OF MADISON AVENUE'S LABOR CAN BE SEEN IN THE NUMBER OF TIMES CLIENTS HAVE FIRED AD AGENCIES IN THE PAST YEAR CHIAT/DAY WAS BOOTED FROM REEBOK INTERNATIONAL'S 80 MILLION US ACCOUNT INTERNATIONAL BUSINESS MACHINES FIRED LINTASWORLDWIDE FROM ITS 100 MILLION PERSONAL COMPUTER ACCOUNT SUBARU OF AMERICA PUT THE BRAKES ON WIEDEN & KENNEDY AFTER A SERIES OF BLUNDERS INCLUDING A MERCIFULLY SHORTLIVED CAMPAIGN IN WHICH A WOMAN CHATTED AIMLESSLY WHILE FILLING HER SUBARU WITH GAS OTHER CLIENTS THAT DUMPED THEIR AGENCIES IN 1993 INCLUDE SMIRNOFF VODKA CHUCK E CHEESE PIZZERIAS THE BUILDERS SQUARE RETAIL CHAIN AND MOLSON BEER IF MOST 1993 ADS ARE BEST FORGOTTEN THERE WERE A FEW EXCEPTIONS MILLER LITE AND ITS AGENCY LEO BURNETT USED HUMOR TO RECOVER FROM THEIR DISASTROUS IT'S IT AND THAT'S THAT CAMPAIGN THE NEW SPOTS FEATURE A GROUP OF TV VIEWERS ARGUING OVER WHETHER TO WATCH A HOCKEY GAME OR A BEAUTY PAGEANT THEY COMPROMISE BY SLAMMING THE TV WITH A BOTTLE OF MILLER LITE SO THE TWO EVENTS MERGE INTO A GAME AMONG EVENINGGOWNED HOCKEY PLAYERS BURNETT ALSO PRODUCED A WINNER FOR MCDONALD'S IN WHICH TWO FOOTBALL PLAYERS WHO CHALLENGE EACH OTHER TO A KICKING CONTEST EVENTUALLY WIND UP ATOP A FLYING BLIMP AND TIMEX WITH ITS AGENCY FALLONMCELLIGOTT PRODUCED A FINE AD IN WHICH THE FRANK SINATRA HIT STRANGERS IN THE NIGHT PLAYS WHILE A FIREFLY TRIES TO GET AMOROUS WITH THE BRIGHTLY ILLUMINATED FACE OF A TIMEX WATCH AS FOR THE REST HERE IS A SAMPLING OF ADS THAT FAILED TO DO THE INDUSTRY PROUD THE FASTFOOD CHAIN RANKED NO 2 IN SALES WAS TRYING TO AFFECT HIPNESS BUT ITS CAMPAIGN FROM D'ARCY MASIUS BENTON & BOWLES WAS JUST ANNOYING THE COMMERCIALS FEATURED MTV PERSONALITY DAN CORTESE AND OPENED WITH A GRATING VOICE SHRIEKING I LOVE THIS PLACE APPARENTLY MANY PEOPLE DIDN'T LOVE THE ADS IN OCTOBER BURGER KING PLACED ITS 100 MILLION ACCOUNT IN REVIEW FIRING ITS FOURTH AGENCY IN FIVE YEARS THE LESSON IT ISN'T EASY TO BE HIP SINCE ITS INTRODUCTION IN 1980 DIET COKE KEPT THE WINNING SLOGAN JUST FOR THE TASTE OF IT BUT AFTER 13 YEARS COCACOLA AND LINTASNEW YORK A UNIT OF INTERPUBLIC GROUP WANTED A CHANGE TASTE IT ALL ONE AWESOME CALORIE WAS INTRODUCED AND THE NATION YAWNED THE PREVIOUS CAMPAIGN RETIRED AT THE END OF 1992 FEATURED EYECATCHING IMAGES OF 1940S MOVIE IDOLS INTERCUT WITH ELTON JOHN AND PAULA ABDUL THE NEW ADS SHOWED MIDDLEAGED LAWYERS CLIMBING MOUNTAINS IN OCTOBER LINTAS LOST THE US PORTION OF THE ACCOUNT TO INTERPUBLIC'S LOWE & PARTNERS THE LESSON IF IT AIN'T BROKE DON'T FIX IT THE YEAR STARTED WITH AN ODD MIX OF ADS THAT FAILED TO COMMUNICATE AT&T'S CONSUMER DISCOUNT PLANNO SMALL FEAT FOR A COMPANY IN THE COMMUNICATIONS BUSINESS THIS MONTH AT&T SCRAPPED THE CAMPAIGN WHICH DEPENDED ON HIGHTECH GIMMICKS AS WELL AS THE AGENCY THAT CREATED IT INTERPUBLIC'S MCCANNERICKSON MCCANN WAS SUPPLANTED BY FCB/LEBER KATZ PARTNERS AND RELEGATED TO A SECONDARY ROLE THE NEW ADS ARE BLATANTLY SENTIMENTAL IN ONE A PREGNANT WOMAN HOLDS A PHONE RECEIVER TO HER BELLY WHILE HAVING A SONOGRAM SO HER HUSBAND WHO IS STUCK AT AN AIRPORT CAN SPEAK TO THEIR UNBORN CHILD EACH AT&T AD ENDS WITH THE COMPANY'S NEW MANTRA THE REAL YOU COMING THROUGH LESSON WHEN HIGHTECH FAILS GET SENTIMENTAL THE TONY AND SHARON CAMPAIGN FROM INTERPUBLIC'S MCCANNERICKSON IS STALE THEIR COFFEEAD COURTSHIP IS PAINFULLY SLOW TO PERCOLATE IN THIS YEAR'S INSTALLMENT HE INVITES HER TO PARIS WHERE HE IS ON A BUSINESS TRIP AND THEY FINALLY KISS WHY DON'T THEY JUST SIGN A PRENUPTIAL AND GET ON WITH IT LESSON EVEN GOOD GIMMICKS GET OLD THE ELDERLY ARE PORTRAYED AS DODDERING FOOLS IN AN UNFUNNY COMMERCIAL FOR ITS TORTILLA CHIP BRAND IN THE SPOTS BY OMNICOM GROUP'S BBDO A GRAYHAIRED WOMAN MUNCHING ON CHIPS IS OBLIVIOUS AS SHE IS ABOUT TO BE FLATTENED BY A RUNAWAY STEAMROLLER SHE LANDS FACE DOWN IN WET CEMENT WHILE HER SNACK IS RESCUED BY NONE OTHER THAN CHEVY CHASE THE FIRED LATENIGHT TALKSHOW HOST LESSON OFFENSIVE ISN'T FUNNY THIS COMPANY MANAGES TO PRODUCE EITHER SLICK EYECATCHING CAMPAIGNS SUCH AS PHOTOGRAPHER ANNIE LEIBOVITZ'S SOCALLED MEMBERSHIP PORTRAIT ADS A FEW YEARS BACK OR DUDS SUCH AS THIS YEAR'S CONDESCENDING CAMPAIGN FROM WPP GROUP'S OGILVY & MATHER FEATURING COMEDIAN JERRY SEINFELD MR SEINFELD TICKS OFF THE ADVANTAGES OF AN AMERICAN EXPRESS CARD BUT THE MESSAGE IS LOST IN LAME ATTEMPTS AT HUMOR LESSON A COMEDIAN DOES NOT NECESSARILY A SPOKESMAN MAKE THE FASTFOOD CHAIN SPOILED SOME APPETITES WITH A COMMERCIAL DESIGNED TO DO JUST THE OPPOSITE IN THE ADS BY EARLE PALMER BROWN TWO HUNTERS ARE SITTING BY A CAMPFIRE ANTICIPATING THE NEXT DAY'S BEAR HUNT BEAR ONE SAYS TASTES JUST LIKE CHICKEN NATURALLY THE PARTY IS BROKEN UP BY BEARS THE NEXT SHOT SHOWS TWO BEARS SITTING AROUND THE CAMPFIRE ONE SAYS TO THE OTHER THAT THEIR MEAL TASTED JUST LIKE CHICKEN LESSON EVEN IN ADVERTISING BAD TASTE HAS LIMITS EVEN MR LETTERMAN ADMITTED THAT CBS WENT OVERBOARD LAST SUMMER WHEN IT BALLYHOOED HIS ARRIVAL FROM RIVAL GENERAL ELECTRIC'S NBC NETWORK WORSE THE PROMOS WEREN'T FUNNY IN ONE MR LETTERMAN SNIFFED AT THE CAMERA AND ASKED YOU GOT A CAT HE ALSO POPPED UP SHRUGGING IN FRONT OF THE CBS LOGO SAYING THIS IS CBS LESSON WHEN YOU SPEND 14 MILLION A YEAR ON A COMIC MAKE SURE THE PROMOS ARE FUNNY A LATE ENTRY TO BE SURE BUT NIKE MANAGES TO MAKE THE CUT FOR ITS ADS BY WIEDEN & KENNEDY STARRING ACTOR DENNIS HOPPER THE SPOTS FOR ITS AIR VEER CROSSTRAINING SHOES SHOW MR HOPPER AS AN OBSESSED FOOTBALL FAN HIS PERFORMANCE INCLUDES TICS UNCONTROLLABLE LAUGHTER AND TWITCHES ADVOCATES FOR THE MENTALLY ILL SAY NIKE IS REINFORCING NEGATIVE STEREOTYPES IN ONE COMMERCIAL MR HOPPER SNEAKS INTO THE LOCKER ROOM OF HIS IDOL FOOTBALL PRO BRUCE SMITH APPEARS TO SNIFF ONE OF MR SMITH'S SHOES LESSON ATTEMPTS TO CUT THROUGH COMMERCIAL CLUTTER CAN BACKFIRE KATHLEEN SULLIVAN WHO WAS REPLACED AS ANCHOR ON CBS THIS MORNING IN 1990 HAS A NEW JOB A SPOKESWOMAN FOR WEIGHT WATCHERS INTERNATIONAL IN A NEW SERIES OF ADS FROM EARLE PALMER BROWN SCHEDULED TO BEGIN JAN 2 MS SULLIVAN APPEARS AND SAYS ONE MOMENT I AM A NETWORK ANCHOR AND THE NEXT WELL LOOK AT ME PATTING HER STOMACH THE ADS ARE PROMOTING A NEW WEIGHT WATCHERS PROGRAM IN WHICH AN INDIVIDUAL TAKES IN A TAD OVER 1000 CALORIES A DAY FOR TWO WEEKS WEIGHT WATCHERS A UNIT OF HJ HEINZ CO SAYS THE THREE ADS WILL SHOW MS SULLIVAN'S GRADUAL WEIGHT LOSS NEITHER A SPOKESWOMAN FOR WEIGHT WATCHERS NOR AN EXECUTIVE AT ITS AD AGENCY WOULD SAY HOW MUCH WEIGHT WAS LOST BY MS SULLIVAN WHO NOW HOSTS A SYNDICATED CABLE SHOW TITLED LIFE CHOICES ONE OF THE FIRST ADS NOTES MS SULLIVAN SHED FIVE POUNDS THE FIRST WEEK WEIGHT WATCHERS SPENDS 35 MILLION TO 45 MILLION ANNUALLY ON ADVERTISING 9312280034 931228 FOREIGN EXCHANGE DOLLAR GAINS AGAINST YEN ON CONCERN OVER JAPAN'S RESPONSE TO ECONOMIC ILLS BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK INCREASING CONCERN OVER JAPAN'S SLUGGISH RESPONSE TO ITS ECONOMIC DOWNTURN PUSHED THE DOLLAR HIGHER AGAINST THE YEN THE DOLLAR ALSO GAINED SOME GROUND AGAINST THE MARK AS TECHNICAL CONSIDERATIONS DOMINATED A VERY QUIET TRADING SESSION LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17013 MARKS UP FROM 16969 MARKS LATE THURSDAY IN NEW YORK THE US CURRENCY WAS CHANGING HANDS AT 11145 YEN UP FROM 11085 YEN STERLING WAS TRADING AT 15045 DOWN FROM 15035 THE MARKET WAS CLOSED FRIDAY FOR THE CHRISTMAS HOLIDAY WEEKEND AT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11148 YEN AND 17015 MARKS IN A RELATIVELY NEWSLESS MARKET TRADERS NOTED THAT THE MOST ACTION WAS TO BE FOUND ON THE YEN WHICH WAS HURT BY SOME LINGERING DISAPPOINTMENT WITH PRIME MINISTER MORIHIRO HOSOKAWA'S PLAN TO PULL THE ECONOMY OUT OF THE DOLDRUMS IN A NATIONALLY TELEVISED NEWS CONFERENCE FRIDAY EVENING MR HOSOKAWA ANNOUNCED A SIXPOINT PLAN FOR STIMULATING THE ECONOMY WHICH WOULD INCLUDE A THIRD SUPPLEMENTARY BUDGET FOR THE CURRENT FISCAL YEAR SOME NEW DEREGULATORY STEPS AND AN EARLY INCOME TAX CUT BUT THE PRIME MINISTER FAILED TO PROVIDE ANY INDICATION OF THE SCALE OR THE TIMING OF THE MOVES FRUSTRATING OBSERVERS WHO HAVE BEEN CALLING FOR PROMPT APPLICATION OF SUCH MEASURES FOR MONTHS SKEPTICAL STOCK TRADERS DUMPED JAPANESE EQUITIES WHEN THE MARKET REOPENED ON MONDAY DROPPING THE NIKKEI 225 INDEX BY 32123 POINTS TO 1681988 AND CURRENCY TRADERS FOLLOWED THEIR LEAD RAPIDLY BOOSTING THE DOLLAR FROM 11080 YEN TO 11120 YEN IN ASIAN TRADING AND THEN PUSHING IT SLOWLY HIGHER FOR THE REST OF THE DAY PEOPLE ARE BECOMING A LITTLE DISENCHANTED WITH JAPAN IN GENERAL SAID LARRY CUBAS ASSISTANT VICE PRESIDENT AT NIPPON CREDIT BANK IN NEW YORK THEY'RE NOT REALLY DOING ANYTHING TO STIMULATE THE ECONOMY OVER THERE TRADERS SAID THE YEN'S WEAKNESS SHOULD CONTINUE UNTIL THE JAPANESE GOVERNMENT COMES OUT WITH MORE SPECIFIC INFORMATION ON WHEN AND BY HOW MUCH IT PLANS TO STIMULATE THE ECONOMY THAT WEAKNESS SHOULD HELP TO PUSH THE DOLLAR THROUGH RESISTANCE AT THE 112YEN LEVEL PAVING THE WAY FOR A CLIMB UP TO ABOUT 11350 YEN IN THE NEXT FEW DAYS MEANWHILE THE DOLLAR ALSO GAINED A BIT AGAINST THE MARK IN WHAT TRADERS GENERALLY DESCRIBED AS A TECHNICAL CORRECTION AFTER THE MARKET WAS UNABLE TO PUSH IT BELOW 16925 MARKS LAST WEEK WITH THE BULK OF EUROPEAN TRADING STILLED BY A HOLIDAY IN LONDON DEALERS NOTED THAT INVESTORS HAD LITTLE INTEREST IN BREAKING INTO NEW TERRITORY IN EITHER DIRECTION LEAVING THE DOLLAR TRAPPED BETWEEN THE TECHNICAL LEVELS THAT HAVE GUIDED THE MARKET OVER THE PAST SEVERAL DAYS IN GENERAL TRADERS BELIEVE THAT THE ECONOMIC FUNDAMENTALS SUCH AS RECENT STRONG ECONOMIC FIGURES IN THE US AND THE MARKET'S VIEW THAT GERMAN INTEREST RATES WILL COME DOWN RAPIDLY IN 1994 WHILE US RATES SHOULD RISE ALL POINT TO A HIGHER DOLLAR AGAINST THE MARK BUT SO FAR THE THIN YEAREND TRADING HASN'T YIELDED ENOUGH DOLLAR BUYERS TO FUEL ANY SUSTAINED MOVE TO THE UPSIDE PINNING THE DOLLAR DOWN TO A WIDE RANGE OF 16925 MARKS TO 17250 MARKS WITH LITTLE NEWS EXPECTED TO EMERGE FOR THE REST OF THE YEAR THAT COULD SPARK THE MARKET INTO ACTION TRADERS EXPECT THOSE LEVELS TO CONTAIN THE DOLLAR UNTIL THE MAJOR INVESTMENT FUNDS STEP BACK INTO THE MARKET TO PLACE THEIR BETS FOR 1994 9312280033 931228 SHORT INTEREST IN NASDAQ STOCKS HITS NEW HIGH INCREASE IS 11TH IN A ROW TELECOMMUNICATIONS SHARES SHOW BIG TOTALS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS CONTINUE TO PLACE LARGE BETS THAT NASDAQLISTED STOCKS ARE RIPE FOR A CORRECTION DATA FROM THE NATIONAL ASSOCIATION OF SECURITIES DEALERS SHOW SHORT INTEREST ON THE NASDAQ STOCK MARKET SET A RECORD FOR THE 11TH CONSECUTIVE MONTH IN MIDDECEMBER RISING MARGINALLY TO 672 MILLION SHARES FROM MIDNOVEMBER'S 6713 MILLION SHORT SALES ARE BETS THAT A STOCK'S PRICE WILL FALL AN INVESTOR SELLS BORROWED SHARES KNOWING THAT THEY MUST EVENTUALLY BE REPLACED FOR RETURN TO THE LENDER IF THE REPLACEMENT SHARES COST LESS THAN THOSE SOLD EARLIER THE SHORT SELLER MAKES A PROFIT SHORT INTEREST IS THE TOTAL OF SHARES SOLD SHORT AT ANY POINT IN TIME AND NOT YET COVERED THIS MONTH'S FIGURES REPRESENT SALES REPORTED AS OF DEC 8 AND SETTLED AS OF DEC 15 SHORT SELLERS HAVE AS MUCH SHORT EXPOSURE NOW AS THEY'VE HAD ALL YEAR SAID HARRY STRUNK AN INVESTMENT CONSULTANT IN PALM BEACH FLA THE STEPPEDUP BEARISHNESS IN THE NASDAQ MARKET FROM MIDNOVEMBER THROUGH MIDDECEMBER MAY HAVE BEEN SPURRED HE SAID BY MARKET ANTICIPATION OF AN INCREASE IN SHORTTERM INTEREST RATES BY THE FEDERAL RESERVE BOARD A CONCERN THAT DIDN'T MATERIALIZE OTHER FACTORS HE SAID PROBABLY INCLUDE YEAREND TAX STRATEGIES WHERE SHORT POSITIONS ARE TAKEN TO ASSIST IN DELAYING THE PAYMENT OF CAPITAL GAINS SHORT INTEREST ON THE NASDAQ NATIONAL MARKET COMPRISING THE LARGERCAPITALIZATION ISSUES CLIMBED LESS THAN 1 TO 6304 MILLION SHARES FROM 629 MILLION SHARES A MONTH EARLIER TELECOMMUNICATIONS AND TECHNOLOGY COMPANIES WERE AGAIN AMONG THOSE WITH THE LARGEST SHORT POSITIONS SHORT SELLING AMONG THE SMALLERCAPITALIZATION STOCKS WHICH MAKE UP ABOUT A THIRD OF THE NASDAQ MARKET DECLINED 18 TO 416 MILLION SHARES FROM 424 MILLION A YEAR EARLIER THE NATIONAL MARKET'S SHORT INTEREST RATIO AS OF MIDDECEMBER ROSE TO 257 FROM 224 THE SHORT INTEREST RATIO FOR THE SMALLEST NASDAQ STOCKS FELL TO 087 FROM 092 THE RATIO THE NUMBER OF TRADING DAYS AT THE MARKET'S AVERAGE VOLUME THAT WOULD BE REQUIRED TO CLOSE OUT THE TOTAL SHORT POSITION THROUGH SHARE PURCHASES IS VIEWED AS A MEASURE OF TRADER SENTIMENT AMONG THE COMPANIES WITH THE LARGEST SHORT INTEREST POSITIONS AMERICAN POWER CONVERSION CORP'S FELL 6 TO 129 MILLION SHARES COMCAST CORP'S CLASS A SPECIAL SHARES JUMPED 14 TO 104 MILLION SHARES AND SNAPPLE BEVERAGE CORP'S POSITION DECLINED 4 TO 98 MILLION SHARES FROM NOV 15 LEVELS THE NASDAQ STOCK WITH THE LARGEST VOLUME INCREASE IN SHORT INTEREST WAS ORACLE CORP WHICH PROVIDES SOFTWARE PRODUCTS FOR DATABASE MANAGEMENT THE SHORT POSITION IN THE HIGHFLYING STOCK WHICH WAS RECENTLY DOWNGRADED ON DISAPPOINTING FISCAL SECONDQUARTER REVENUE GROWTH MORE THAN DOUBLED TO 52 MILLION SHARES FROM 23 MILLION SHARES ON NOV 15 THE FOLLOWING TABLE SHOWS THE NASDAQ ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 100000 SHARES EXISTED AT MIDDECEMBER OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDNOVEMBER SEE ACCOMPANYING TABLE WSJ DEC 28 1993 9312280032 931228 GLOBOCOP PEACEKEEPING MISSIONS OF UN ARE PURSUED ON A WING AND A PRAYER UNSUNG STAFFERS SCRAMBLE AS MANY NATIONS SEEK HELP FEW WANT TO PAY BACKS TURNED ON BURUNDI BY GERALDINE BROOKS STAFF REPORTER OF THE WALL STREET JOURNAL UNITED NATIONS IN THE DEPARTMENT OF PEACEKEEPING OPERATIONS THE DAILY 10 AM STAFF MEETING IS KNOWN AS MORNING PRAYERS LATELY THAT FACETIOUS TAG HAS BEGUN TO SEEM GLOOMILY ACCURATE AS THE PEACEKEEPERS GATHER EACH DAY TO SHARE THE BAD NEWS ON AN ALPHABET OF CRISES FROM ANGOLA TO THE FORMER YUGOSLAVIA THEY INCREASINGLY FIND THEMSELVES WITH LITTLE TO OFFER BEYOND HOPEFUL WORDS ONE RECENT MORNING THE MEETING STARTS WITH A DISCUSSION OF THE SITUATION IN ANGOLA WHERE THE NEWS FOR ONCE IS NOT ALL BAD WARRING FACTIONS HAVE BEGUN TO NEGOTIATE A CEASEFIRE BUT FOR MAURICE BARIL THE DEPARTMENT'S CHIEF MILITARY ADVISER THE PROSPECT OF A PEACE AGREEMENT MEANS A POTENTIAL PROBLEM THEY'LL SAY THEY WANT 25000 PEACEKEEPERS IN 30 DAYS SAYS THE CANADIAN GENERAL WE'LL ROLL ON THE GROUND AND START LAUGHING AT THE BEST OF TIMES IT TAKES THE UN 60 TO 90 DAYS TO GET A FORCE IN PLACE AND RIGHT NOW IS NOT THE BEST OF TIMES ANGOLA WILL LINE UP WITH 17 OTHER UN PEACEKEEPING OPERATIONS MOST CLAMORING FOR PERSONNEL THAT MEMBER STATES ARE INCREASINGLY RELUCTANT TO PROVIDE THE MISSION ON THE KUWAITIRAQ BORDER HAS BEEN WAITING SIX MONTHS FOR 4000 MORE SOLDIERS BOSNIA HAS WAITED FOR 8000 MORE SINCE LAST MAY IF THE TROOPS ALSO NEED EQUIPMENT A FLAK JACKET EVEN A BLUE HELMET THE AVERAGE TIME TO PROCURE IT IS FOUR MONTHS TO SHORTEN DELAYS THE PEACEKEEPING DEPARTMENT PROPOSED SETTING UP A STOCK OF BASIC GEAR BUT MEMBER STATES REFUSED TO PAY 15 MILLION TO FUND IT WHEN PEACEKEEPING MISSIONS GO AWRY THE WORLD PEERS SCORNFULLY AT THE UN AND WONDERS WHY IT DOES NOT WORK BETTER A LOOK INSIDE THE PEACEKEEPING DEPARTMENT UNDERSTAFFED STARVED FOR FUNDS BESET BY BLIZZARDS OF CHANGING INSTRUCTIONS FROM THE SECURITY COUNCIL RAISES A DIFFERENT QUESTION HOW THE SYSTEM WORKS AT ALL THE PEACEKEEPERS DO A JOB THAT HAS CHANGED DRAMATICALLY IN THE PAST FOUR YEARS AS THE UN HAS MOUNTED AS MANY PEACEKEEPING MISSIONS AS IT DID IN THE FIRST 43 OF ITS EXISTENCE AND OLDSTYLE PEACEKEEPING WAS MUCH SIMPLER USUALLY JUST MONITORING CEASEFIRES PEACEKEEPERS IN THE LONGSTANDING MISSION ON THE GOLAN HEIGHTS BETWEEN ISRAEL AND SYRIA REFER TO THEIR JOB AS COOKING AND LOOKING BECAUSE THE CHANCE OF ANY MILITARY ACTION IS ALMOST NIL BUT NEWSTYLE MISSIONS HAVE ASKED PEACEKEEPERS TO DO MUCH MORE RUN ELECTIONS IN NAMIBIA AND CAMBODIA DISARM FIGHTERS IN EL SALVADOR FEED WAR VICTIMS UNDER FIRE IN BOSNIA AND KEEP THE PEACE IN COUNTRIES SUCH AS SOMALIA WHERE THERE IS NO PEACE TO KEEP YESTERDAY A PEACEKEEPER FROM NORWAY WAS KILLED IN SOUTHERN LEBANON BY ISRAELI SOLDIERS WHO MISTOOK HIS PATROL FOR A GROUP OF ARAB GUERILLAS THIS YEAR WITH 75000 TROOPS DEPLOYED THE DEPARTMENT'S BUDGET MORE THAN DOUBLED TO 36 BILLION BUT COLLECTING THAT AMOUNT FROM MEMBER STATES IS DIFFICULT AS ARREARS MOUNT THE UN LAGS ON PAYMENTS TO TROOP CONTRIBUTORS MANY OF THEM DEVELOPING NATIONS WHOSE TREASURIES RELY ON THIS HARDCURRENCY INFUSION THEY IN TURN BECOME RELUCTANT TO SUPPLY MORE TROOPS THE PEACEKEEPING DEPARTMENT'S BUREAUCRATS WHOSE JOB IS TO TURN SECURITY COUNCIL WORDS INTO ACTIONS INCLUDE A FORMER SOVIET COLD WARRIOR A ONETIME TRANSLATOR FOR THE CUBAN THEATER A FORMER JAPANESE ACADEMIC AND AN ACCLAIMED INDIAN NOVELIST KOFI ANNAN A 55YEAROLD UN VETERAN FROM GHANA WITH A MASTER'S DEGREE IN MANAGEMENT FROM MIT BECAME HEAD OF THE DEPARTMENT LAST MARCH THE TROUBLES CONFRONTING THIS TEAM ARE APPARENT IN ONE MORNING'S PROBLEMS THAT LAND ON THE DESK OF GEN BARIL WHO HAS BEEN ON LOAN TO THE UN FROM THE CANADIAN GOVERNMENT SINCE JULY 1992 A PLANELOAD OF EGYPTIAN PEACEKEEPING TROOPS IS SITTING ON THE RUNWAY IN CAIRO BECAUSE SOMEONE HAS NEGLECTED TO GIVE IT LANDING CLEARANCE IN MOGADISHU SOMALIA A MEMBER OF THE UN'S DEVELOPMENT PROGRAM WANTS GEN BARIL TO SETTLE A DISPUTE OVER WHETHER CANADIAN MINEDISPOSAL EXPERTS CAN WEAR THEIR MILITARY UNIFORMS WHILE IN CAMBODIA A TROOPCONTRIBUTING COUNTRY HAS SENT AN UNEXPECTED MESSAGE THAT ITS FORCE IN RWANDA WILL BE PULLING OUT SOONER THAN EXPECTED WE HAD THEIR AMBASSADOR IN HERE AT 4 PM YESTERDAY AND HE DIDN'T SAY ZIP ABOUT THIS THE GENERAL SIGHS THE DESK OFFICER FOR THE MISSION TO LIBERIA WANTS TO KNOW WHETHER 20 MORE MILITARY OBSERVERS CAN BE DISPATCHED SEND THEM IF THEY CAN BE USED IF THEY'RE GOING TO BE SITTING ON THEIR REAR ENDS IN MONROVIA I DON'T WANT THEM SENT HE RESPONDS SOME STAFFERS WANT TO SEE IF THE UN CAN GET ANY OF THE EQUIPMENT SLATED FOR DESTRUCTION UNDER EUROPE'S LATEST ARMSREDUCTION PACT BUT GEN BARIL IS LUKEWARM WE SAY WE NEED GENERATORS AND SOMEONE SAYS OK WE'VE GOT 125' THEN WE FIND THAT THEY'RE VINTAGE 1954 AND HAVEN'T BEEN TURNED ON IN TWO DECADES GEN BARIL'S BIGGEST HEADACHE OF THE MORNING HAS BEEN PROVIDED BY THE AMERICANS THE US ARMY HAS JUST INFORMED HIM IT WILL TAKE ALL ITS EQUIPMENT WHEN ITS TROOPS LEAVE SOMALIA ON MARCH 31 THE MESSAGE HAS TAKEN THE GENERAL BY SURPRISE UNTIL NOW THE US HAD SAID IT WOULD LEASE THE UN ITS TRUCKS WATER PURIFIERS AND OTHER GEAR ESSENTIAL TO KEEP THE MISSION RUNNING THEY SAY YOU HAVE OUR SUPPORT' AND THEN THEY DO THIS HE SAYS NOW HE WILL HAVE TO SCROUNGE THE HARDTOFIND EQUIPMENT FROM OTHER NATIONS OR TALK THE US INTO CHANGING ITS MIND GEN BARIL FINALLY GETS TO THE UN CAFETERIA FOR LUNCH A DRIEDOUT SALAMI SANDWICH AND A BRUISED APPLE AT 315 PM HIS CURRENT JOB HE SAYS REMINDS HIM OF HIS STINT AT MILITARY SCHOOL EVERY FEW MINUTES YOU'RE PRESENTED WITH A NEW PROBLEM THE DIFFERENCE IS THAT HERE YOUR SOLUTIONS AREN'T GRADED AND SHOVED IN A FILETHEY'RE APPLIED WHEN HE JOINED THE DEPARTMENT A YEAR AND A HALF AGO THE MILITARY ADVISER HAD A STAFF OF EIGHT OFFICERS IT HAS BALLOONED SINCE THEN TO 62 DOING WHAT IN MY ARMY WOULD REQUIRE A STAFF OF 1000 HE SAYS THERE IS ALSO A NEW 24HOUR SITUATION CENTER HOUSED IN A RUNDOWN UN PROPERTY THAT ONE STAFFER DESCRIBES AS A DUMP BUCHAREST TOWN HALL CIRCA 1950 IT IS STAFFED MAINLY BY MILITARY OFFICERS LENT AND PAID FOR BY THEIR GOVERNMENTS BECAUSE OF ITS CONDITION VISITORS AREN'T USUALLY ADMITTED BUT WHEN THE NEW US CHAIRMAN OF THE JOINT CHIEFS OF STAFF GEN JOHN SHALIKASHVILI ASKED TO SEE IT ON A VISIT EARLIER THIS MONTH HIS REQUEST COULDN'T BE DENIED THE STAFF FOUND A FEW UN POSTERS TO DRESS THE PLACE UP BUT FRAMING THE POSTERS POSED A PROBLEM BECAUSE TECHNICALLY EVEN SMALL EXPENDITURES HAVE TO BE PUT TO COMPETITIVE BIDS THE STAFFERS HAD THE CHOICE OF BREAKING UN RULES OR PAYING OUT OF THEIR OWN POCKETS AND EVEN WITH THE POSTERS UP THERE WAS STILL THE CENTER'S MICE INFESTATION TO WORRY ABOUT ONE STAFF MEMBER SUGGESTED PAINTING THEM PEACEKEEPER BLUE AND RECRUITING THEM TO SOLVE THE STAFF SHORTAGE MORNINGS ARE ALWAYS THE BUSIEST TIME IN THE PEACEKEEPING DEPARTMENT WHERE THE RHYTHMIC THUMP OF HELICOPTERS LIFTING OFF FROM A NEARBY HELIPAD SETS THE WORKDAY TO A WARLIKE TATTOO BY 830 AM IN NEW YORK IT IS ALREADY LATE AFTERNOON IN MOST OF THE PEACEKEEPERS' FARFLUNG MISSIONS ELISABETH LINDENMAYER THE SOMALIA DESK OFFICER STARTS HER DAY AS SHE ALWAYS DOES WITH SATELLITE PHONE CALLS TO MOGADISHU BY SOMALIA'S SKEWED STANDARDS IT HAS BEEN A QUIET DAY A UN WORKER KIDNAPPED A BOMB FOUND IN A UN COMPOUND A FISHING BOAT RAIDED BY PIRATES THE BOMB ANYTHING TO DO WITH THE SALARIES OF THE POLICE MS LINDENMAYER ASKS HER COLLEAGUE WHEN THEIR PAY IS LATE SOME LAWENFORCERS TURN OUTLAW IN PROTEST PART OF THE UN'S MANDATE IN SOMALIA IS REBUILDING THE POLICE FORCE BUT THE FUNDS TO DO IT ARE AS USUAL SCARCE MS LINDENMAYER PROMISES TO FIND THE MONEY IT IS IMPORTANT TO GET THE POLICE REESTABLISHED BECAUSE IT IS NOT CLEAR HOW MANY PEACEKEEPING TROOPS WILL BE LEFT IN SOMALIA ONCE THE AMERICANS GO MS LINDENMAYER THINKS THE GERMANS WHO HAVE A HARDTOREPLACE LOGISTICS UNIT MIGHT BE PERSUADED TO STAY IF THEY ARE MOVED NORTH WHERE THE LOCAL SOMALIS WELCOME THE UN AND HAVE BEEN ASKING FOR MONTHS FOR A TROOP PRESENCE TO PEACEKEEPERS IN NEW YORK IT SEEMS OBVIOUS THAT TROOPS SHOULD MOVE OUT OF MOGADISHU WHERE CLAN HOSTILITIES KEEP THEM HOLED UP IN BARRACKS DOING NOTHING WE HAVE TO PUT OUR EGGS WHERE THE GROUND IS SOFT SAYS A PAKISTANI COLONEL WHO HAS DROPPED IN TO CONFER WITH MS LINDENMAYER SHE AGREES BUT THE FORCE COMMANDER IN MOGADISHU DOES NOT HE FEARS NEW ATTACKS ON THE UN COMPOUND IF TROOP STRENGTH THERE FALLS AS WELL AS DEALING WITH THE NEEDS OF THE FIELD STAFF MS LINDENMAYER MUST WRITE REAMS OF REPORTS FOR THE SECURITY COUNCIL AND HELP IN THE DRAWNOUT BUSINESS OF DRAFTING RESOLUTIONS THERE HAVE BEEN 12 RESOLUTIONS ON SOMALIA ALONE THE LATEST OF WHICH COMPLETELY OVERTURNED ITS PREDECESSORS IT'S LIKE KAFKA MS LINDENMAYER SAYS OF THE MYRIAD REVERSES YOU RUN FOR A YEAR AND FIND YOURSELF IN EXACTLY THE SAME PLACE THE DAUGHTER OF A FRENCH GENERAL MS LINDENMAYER WAS RAISED AMID THE WARS OF INDOCHINA AND AFRICA I GREW UP WITH THE BOMBS FALLING AND EVEN AS A CHILD I FELT I WOULD WORK FOR PEACE SHE SAYS SHE EVEN MARRIED A SWISS MAN THINKING HIS NEUTRAL NATIONALITY WOULD PROVIDE A SURE BUFFER FROM WAR INSTEAD THE PAST YEAR HAS OFTEN FOUND HER ADMINISTERING A BLOODBATH WE WERE KILLING WOMEN AND CHILDREN SHE SAYS OF THE SHOOTOUTS IN WHICH SOMALI SNIPERS USED CIVILIAN CROWDS FOR COVER IN ATTACKS ON THE UN I WAS THINKING THIS CAN'T BE THE SOMALIA DEBACLE SENT SHOCK WAVES THROUGH THE UN BUREAUCRACY AND ITS MEMBER STATES ALIKE IN SOMALIA WITH VIRTUALLY NO PUBLIC DEBATE THE SECURITY COUNCIL HAD SHIFTED THE MISSION FROM TRADITIONAL PEACEKEEPING WHERE TROOPS SHOOT ONLY IN SELFDEFENSE TO PEACE ENFORCEMENT WHERE WEAPONS CAN BE USED TO PACIFY BELLIGERENTS WE WERE GOING TO GRAB THESE THUGS BY THE THROAT AND SAY WE'RE NOT GOING TO LET YOU LET YOUR PEOPLE STARVE AND AS A SOLDIER I WAS FEELING PRETTY GOOD ABOUT THAT SAYS GEN BARIL IN THE SECURITY COUNCIL HE SAYS THE MOOD WAS MUCH THE SAME THERE WAS A LOT OF WAR PAINT IN THE COUNCIL A FEELING THAT ENOUGH IS ENOUGH NOBODY EVER STOOD UP AND SAID THIS PEACE ENFORCEMENT IS BULL IT WON'T FLY' BUT AFTER THE 18 US COMBAT DEATHS OF EARLY OCTOBER COUNTRIES SUDDENLY QUESTIONED THE SWITCH TO AN OFFENSIVE MISSION AND WANTED THEIR FORCES OUT ALTHOUGH WE LOST SOME LIVES WE WERE SOMEWHAT LUCKY TO BE STOPPED IN OUR TRACKS AND FORCED TO THINK ABOUT WHAT WE WERE DOING SAYS GEN BARIL TO ME THE MESSAGE IS THAT COUNTRIES WON'T SEND THEIR SONS AND DAUGHTERS TO DIE UNLESS A VITAL NATIONAL INTEREST IS AT STAKE AND IT'S HARD TO SHOW THAT HUMANITARIAN RELIEF IS A VITAL NATIONAL INTEREST CERTAINLY THAT SEEMS TO BE THE MESSAGE THAT UN MEMBERS HAVE DRAWN WHEN THE SECURITY COUNCIL RECENTLY RECEIVED AN APPEAL FOR HELP AFTER TRIBAL MASSACRES IN BURUNDI THE RESPONSE FROM THE 15 MEMBERS WAS STONY SILENCE ACCORDING TO A WITNESS AT THE CLOSEDDOOR MEETING LATER THE PEACEKEEPING DEPARTMENT RECEIVED THREE SEPARATE PHONE CALLS FROM THE US MISSION ALL UNDERSCORING THE POINT THAT THE US FOR ONE WAS MOST DEFINITELY NOT PREPARED TO DO ANYTHING WITH REGARD TO BURUNDI MEANWHILE AS THE SOMALIA OPERATION HAS COME UNDER CRITICISM FOR USING TOO MUCH FORCE PEACEKEEPERS IN THE FORMER YUGOSLAVIA CONTINUE TO BE DENOUNCED FOR USING TOO LITTLE SHASHI THAROOR THE DESK OFFICER FOR THE FORMER YUGOSLAVIA USED TO WRITE NOVELS IN HIS SPARE TIME BUT NOW THE CRISIS IN BOSNIA AND CROATIA KEEPS HIM AT HIS DESK MOST NIGHTS UNTIL 10 OR 11 PM ON A RECENT EVENING HE LEFT WORK EARLY TO ATTEND A BENEFIT ARRANGED BY NEW YORK WRITERS TO RAISE MONEY FOR THEIR COUNTERPARTS IN SARAJEVO AS AUTHORS SUCH AS SUSAN SONTAG AND DON DELILLO READ ESSAYS AND SPOKE OF A UN BETRAYAL OF THE BOSNIANS MR THAROOR SLUMPED WANLY IN HIS SEAT WHAT THEY SAY IS TRUE FOR THEM FROM THEIR PERSPECTIVE AND IT'S VERY MOVING HE WHISPERS BUT THE MORE INVOLVED YOU ARE THE MORE YOU KNOW THE LESS CLEAR IT SEEMS THEY TALK AS IF THEY HAD ALL THE MORAL RIGHT BUT THE UN IS ALSO THE HUMANITARIAN WORKER UNLOADING FOOD UNDER FIRE AT THE SARAJEVO AIRPORT OR THE 66 SOLDIERS WHO'VE BEEN KILLED AND THEY ARE THE ONES WHO HAVE SAVED LIVES THERE ESPECIALLY LAST WINTER AT INTERMISSION THE ORGANIZER OF THE EVENT DESCENDS ON MR THAROOR WHO BRACES HIMSELF FOR A POLITICAL DIATRIBE BUT IT DOESN'T COME INSTEAD THE ORGANIZER ASKS IF THE UN HAS ANY IDEAS ABOUT HOW TO GET THE EVENING'S PROCEEDS INTO SARAJEVO 9312280031 931228 WHAT'S NEWS BUSINESS AND FINANCE THE WHITE HOUSE CALLED FOR EMERGENCY TALKS ON SEMICONDUCTOR TRADE WITH JAPAN AS NEW FIGURES SHOWED THE FOREIGN SHARE OF THE JAPANESE SEMICONDUCTOR MARKET FELL TO 181 IN THE THIRD QUARTER BELOW THE 20 GOAL SET UNDER A 1986 AGREEMENT ALTHOUGH DISAPPOINTED WITH THE FIGURES US INDUSTRY OFFICIALS REINED IN THEIR CRITICISM OF JAPAN PREFERRING TO WAIT TO SEE WHAT THE TALKS PRODUCE FORD WILL SEND THREE SENIOR EXECUTIVES TO JAPAN TO HELP RESCUE MAZDA IN WHICH IT OWNS A 25 STAKE THE MOVE WHICH SYMBOLIZES THE CHANGING FORTUNES OF US AND JAPANESE AUTO MAKERS POINTS TO A FUTURE IN WHICH MAZDA WILL ACT MORE AS FORD'S ASIAN ARM THAN AS AN INDEPENDENT ENTITY STOCK PRICES VAULTED TO RECORDS IN LIGHT POSTHOLIDAY TRADING THE DOW INDUSTRIALS ROSE 3521 TO 379293 THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL NEARLY 1/4 ITS YIELD ROSE TO 623 METROPOLITAN LIFE FIRED SEVERAL OFFICIALS TIED TO QUESTIONABLE SALES TACTICS IN ITS TAMPA OFFICE AND ACKNOWLEDGING THAT THE PRACTICES EXTENDED BEYOND FLORIDA WIDENED ITS REFUND OFFER TO 45000 MORE CLIENTS WHO MAY HAVE BEEN MISLED INTO BUYING INSURANCE PRUDENTIAL SECURITIES IS TAKING LEGAL STEPS TO BLOCK ITS FORMER BROKERS FROM GETTING INVOLVED IN LIMITEDPARTNERSHIP DISPUTES WITH THE COMPANY A JURY AWARDED MORE THAN 12 MILLION TO THE ESTATE OF A WOMAN WHOSE HMO REFUSED TO PAY FOR A BONEMARROW TRANSPLANT TO TREAT HER BREAST CANCER THE VERDICT COMES AS MANY HMOS AND INSURERS ARE GRAPPLING WITH WHETHER TO COVER THIS AND OTHER EXPENSIVE AND CONTROVERSIAL TREATMENTS FLORIDA'S 31 BILLION TOURISM INDUSTRY IS BEGINNING TO FEEL THE TOLL OF A SERIES OF HIGHLY PUBLICIZED ATTACKS ON VISITORS AS ITS BUSIEST SEASON STARTS SOME TRAVEL FIRMS REPORT A DRAMATIC FALLOFF IN INTERNATIONAL BOOKINGS THE VICTOR OF THE PARAMOUNT BATTLE WILL FACE BILLIONS OF DOLLARS OF GOODWILL CHARGES THAT WILL LOWER PROFITS FOR 20 TO 40 YEARS THE CURRENT QVC AND VIACOM BIDS COULD GENERATE CLOSE TO 58 BILLION IN GOODWILL AND THE BUYER COULD FACE ANNUAL CHARGES OF 290 MILLION AGAINST PROFITS FOR 20 YEARS THE NASDAQ STOCK MARKET CONFIRMED THAT THE SEC INQUIRED ABOUT LAST WEEK'S TRADING HALT IN QVC JUST BEFORE PARAMOUNT ENDORSED QVC'S BID TRADING IN QVC LAST WEDNESDAY DIDN'T RESUME IN TIME TO ALLOW INVESTORS TO VALUE ITS BID WHEN PARAMOUNT RESUMED TRADING LATER THAT DAY THE WHITE HOUSE RELEASED A LENGTHY DOCUMENT ON THE RESOLUTION TRUST CORP'S SHORTCOMINGS THAT WAS COMPILED BY STANLEY TATE A FORMER NOMINEE TO HEAD THE AGENCY SHORT INTEREST ON THE NASDAQ STOCK MARKET SET A RECORD FOR THE 11TH MONTH IN A ROW RISING TO 672 MILLION SHARES FROM MIDNOVEMBER'S 6713 MILLION TOKYO STOCKS DROPPED 19 AMID DISAPPOINTMENT OVER GOVERNMENT EFFORTS TO LIFT JAPAN'S ECONOMY OUT OF A GRINDING DOWNTURN THE NIKKEI INDEX FELL 32123 TO 1681988 FRANKFURT STOCK PRICES INCREASED SETTING A RECORD FOR THE FIFTH CONSECUTIVE TRADING DAY GRAIN FUTURES PRICES SOARED TO CONTRACT HIGHS AS MANY TRADERS CONTINUED TO COME TO TERMS WITH THE WEAKNESS OF THIS YEAR'S US HARVEST BONDS LEHMAN BROTHERS TREASURY INDEX 557830 UP 167 COMMODITIES OIL 1413 A BARREL OFF 35 CENTS DOW JONES FUTURES INDEX 14227 UP 084 SPOT INDEX 12751 UP 021 DOLLAR 11145 YEN UP 060 17013 MARKS UP 00044 9312280029 931228 MARKETING & MEDIA NASDAQ CONFIRMS SEC QUESTIONED QVC TRADING HALT BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL THE NASDAQ STOCK MARKET CONFIRMED THAT THE SECURITIES AND EXCHANGE COMMISSION RAISED QUESTIONS ABOUT LAST WEEK'S TRADING HALT IN QVC NETWORK INC IN THE HEAT OF THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC NASDAQ WAS RESPONDING TO A REPORT IN THE WALL STREET JOURNAL THAT THE SEC STAFF HAD ASKED FOR INFORMATION ABOUT THE TRADING HALT THE EXTENDED HALT OCCURRED LAST WEDNESDAY FOLLOWING UNCONFIRMED MARKET REPORTS THAT PARAMOUNT'S BOARD HAD ENDORSED A NEW QVC BID CURRENTLY VALUED AT ABOUT 98 BILLION OVER A RIVAL VIACOM INC BID VALUED AT ABOUT 96 BILLION ALTHOUGH PARAMOUNT SHARES REOPENED FOR TRADING LATER THAT AFTERNOON QVC SHARES DIDN'T REOPEN WHICH HURT INVESTORS' ABILITY TO VALUE THE QVC OFFER AND PARAMOUNT STOCK AS WELL BUT THE TRADING DELAY AVERTED THE RISK OF A PRECIPITOUS DECLINE IN THE PRICE OF QVC STOCK BECAUSE BOTH BIDDERS WOULD ISSUE NEW STOCK TO PURCHASE PARAMOUNT INVESTORS USUALLY SELL THE STOCK OF WHICHEVER BIDDER IS GAINING IN THE CONTEST TO ACQUIRE THE GIANT ENTERTAINMENT COMPANY ROBERT FERRI NASDAQ PRESS SECRETARY IN WASHINGTON DC SAID THE EXCHANGE AND THE SEC INDEED CONSULTED ON THIS MATTER THIS CAME UP IN THE COURSE OF FAIRLY REGULAR COMMUNICATIONS ONE PERSON WITH KNOWLEDGE OF THE SEC'S QUESTIONS SAID ARTHUR LEVITT CHAIRMAN OF THE COMMISSION HAD ASKED FOR INFORMATION ON THE SUBJECT BUT MR FERRI SAID THAT MR LEVITT HADN'T CALLED NASDAQ DIRECTLY IN A STATEMENT QVC SAID THAT IT HAD BEEN IN CONSTANT COMMUNICATION WITH OFFICIALS AT NASDAQ AND ADVISED NASDAQ THAT QVC EXPECTED TO ISSUE A PRESS RELEASE AT ANY MOMENT UPON EXECUTION OF A SIGNED MERGER AGREEMENT QVC PROMPTLY ISSUED A PRESS RELEASE BUT QVC DISPUTED NASDAQ'S EARLIER ASSERTION THAT WHEN IT ASKED QVC FOR INFORMATION IT DIDN'T RECEIVE A RESPONSE UNTIL AFTER THE END OF THE TRADING DAY MR FERRI SAID NASDAQ WAS REFERRING TO THE DELAY IN THE ISSUANCE OF THE PRESS RELEASE WHICH WAS HELD UP UNTIL AFTER 6 PM THAT DAY AS PARAMOUNT QVC AND VIACOM COMPLETED NEGOTIATIONS OVER RULES FOR THE CURRENT ROUND OF BIDDING WHICH BOTH COMPANIES HAD TO ACCEPT THE GAP BETWEEN THE TWO COMPANIES' OFFERS NARROWED FURTHER YESTERDAY WITH QVC STOCK FALLING 50 CENTS A SHARE TO 3950 IN NASDAQ STOCK MARKET TRADING AND VIACOM CLASS B STOCK FALLING 125 CENTS A SHARE TO 46625 IN AMERICAN STOCK EXCHANGE TRADING QVC IS OFFERING 92 IN CASH FOR 51 OF PARAMOUNT SHARES FAR MORE THAN VIACOM'S OFFER OF 85 IN CASH FOR 51 BUT THE VALUE OF SECURITIES VIACOM IS OFFERING FOR THE REMAINING 49 OF PARAMOUNT SHARES EXCEEDS THE VALUE OF QVC'S SECURITIES ACCORDING TO MANY TRADERS ALTHOUGH VALUATIONS OF THE TWO BIDS VARY SLIGHTLY SOME TRADERS VALUE THE QVC BID AT 8146 A SHARE COMPARED WITH 7962 A SHARE FOR THE VIACOM OFFER THE DIFFERENCE AMOUNTS TO ROUGHLY 221 MILLION BASED ON YESTERDAY'S STOCK PRICES FOR QVC AND VIACOM VIACOM HAS UNTIL JAN 7 TO TOP THE QVC OFFER WHICH COULD EXTEND THE BIDDING WAR INTO FEBRUARY UNDER THE AUCTION RULES 9312280028 931228 ENTERPRISE NEW YORK BUSINESSES CITE HEALTHCARE COSTS AS BIGGEST PROBLEM NEW YORK SMALL BUSINESSES IN THE NEW YORK AREA CONSIDER THE COST OF EMPLOYEE HEALTH CARE TO BE THEIR MOST SERIOUS BUSINESS PROBLEM SUPERSEDING CONCERNS OVER TAXES AND GOVERNMENTAL REGULATION A SURVEY CONDUCTED BY CHEMICAL BANK FOUND THAT 82 CONSIDER HEALTHCARE COSTS SERIOUS OR SOMEWHAT OF A PROBLEM WHILE 72 SAID TAXES WERE A PROBLEM AND 54 CITED GOVERNMENTAL REGULATION MORE THAN HALF OF THE SMALL COMPANIES SURVEYED IN THE NEW YORK AREA EXPECT THE GOVERNMENT'S PROPOSED HEALTHCARE PROGRAM TO HAVE A POSITIVE EFFECT WHILE 28 SAID THE EFFECT WILL BE NEGATIVE THE BANK SAID OF THE BUSINESSES SURVEYED 47 OPPOSE AN ENERGY TAX TO REDUCE THE FEDERAL DEFICIT WHILE 35 WOULD SUPPORT ONE THE SURVEY FOUND THAT 32 FEEL THE FAMILYLEAVE LAW WILL HAVE A POSITIVE IMPACT ON THEIR BUSINESS WHILE 34 EXPECT A NEGATIVE IMPACT AND 24 SAID NO EFFECT THE TELEPHONE SURVEY WAS CONDUCTED BY ROPER STARCH WORLDWIDE INC A MARKET RESEARCH FIRM AND INCLUDED 932 COMPANIES IN THE NEW YORK AREA WITH REVENUES RANGING FROM 1 MILLION TO 10 MILLION 9312280026 931228 SPEAKING OF BUSINESS A SLUMP PREDICTOR CLINTON SHOULD LOVE BY LINDLEY H CLARK JR PRESIDENT CLINTON HAS BEEN WORRYING A LOT LATELY ABOUT WHAT THE FEDERAL RESERVE SYSTEM WILL OR WILL NOT DO TO INTEREST RATES WELL MAYBE HE CAN RELAX AT LEAST FOR A WHILE IF A NEW METHOD FOR FORECASTING SLUMPS CONTINUES TO PERFORM THE WAY IT HAS IN THE PAST THE NEXT RECESSION ISN'T LIKELY TO BE APPARENT UNTIL MR CLINTON IS SAFELY REELECTED IN 1996 THE FED HAS HAD A HAND IN THIS DEVELOPMENT TOO A FACT THAT FED CHAIRMAN ALAN GREENSPAN MIGHT CHOOSE TO POINT OUT TO THE PRESIDENT BY KEEPING MONEY PLENTIFUL IN RECENT YEARS THE CENTRAL BANK HAS ENSURED THAT INTEREST RATES WOULD DECLINE AND STAY LOW LOW INTEREST RATES TEND TO STIMULATE BUSINESS WHICH OF COURSE IS EXACTLY THE RESULT THAT MR CLINTON DESIRES GEOFFREY MOORE DIRECTOR OF COLUMBIA UNIVERSITY'S CENTER FOR INTERNATIONAL BUSINESS CYCLE RESEARCH BELIEVES THAT THE KEY RATE IS THE PRIME RATE WHICH THIS NEWSPAPER DEFINES AS THE BASE RATE THAT BANKS CHARGE ON LOANS TO CORPORATIONS RESEARCH HAS CONVINCED HIM THAT A BUSINESS EXPANSION WILL LAST ABOUT 15 MONTHS PLUS 157 TIMES THE LAG IN THE PRIME RATE THE LAG IN THE PRIME RATE IS THE LENGTH OF TIME THAT ELAPSES BETWEEN THE START OF A RECOVERY AND THE TIME WHEN THE PRIME RATE BEGINS TO MOVE UP THE CURRENT BUSINESS CYCLE EXPANSION HAS BEEN A VERY SLOW ONE BUT IT HAS BEEN MEANDERING UPWARD SINCE MARCH 1991 SO AS OF DECEMBER 1993 IT HAS BEEN UNDER WAY FOR 33 MONTHS USING MR MOORE'S FORMULA THE EXPANSION WILL LAST AT LEAST INTO OCTOBER 1996 THAT FORECAST YOU MUST REMEMBER DEPENDS ON THE PRIME RATE BEGINNING TO MOVE UP NEXT MONTH SO FAR THERE HAS BEEN NO SIGN OF A PRIME RATE UPTURN IN FACT A FEW ISOLATED BANKS HAVE REDUCED THEIR PRIME RATES FROM THE CURRENT 6 LEVEL IN AN EFFORT TO ATTRACT MORE BUSINESS BORROWERS BY THIS NEWSPAPER'S RULES CHANGES IN THE PRIME DON'T COUNT UNTIL THEY'RE ADOPTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS EVERY MONTH THAT THE PRIME STAYS AT 6 OR FALLS ADDS TO THE LENGTH OF THE PREDICTED EXPANSION IF THE EXPANSION DOES INDEED LAST UNTIL OCTOBER 1996 MR CLINTON WILL BE ABLE TO GO TO THE POLLS CLAIMING CREDIT FOR A VERY LONG EXPANSION AS THE ACCOMPANYING CHART INDICATES IT WILL BE THE THIRD LONGEST IN THE PAST FOUR DECADES THE CHART ALSO SHOWS QUITE GRAPHICALLY THAT MR MOORE'S FORMULA HAS COME QUITE CLOSE TO PREDICTING ALL THOSE EXPANSIONS BE THEY LONG OR SHORT IF THE CURRENT EXPANSION DOES END IN OCTOBER 1996 IT WON'T BECOME OFFICIAL UNTIL IT IS DEEMED OVER BY THE NATIONAL BUREAU OF ECONOMIC RESEARCH AND THE DECISION MAY NOT COME UNTIL AFTER THE PRESIDENTIAL ELECTION IF THE ECONOMY CONTINUES TO MOVE AT ITS CURRENT LEISURELY PACE THE NATION MAY BE WELL INTO 1997 BEFORE MANY PEOPLE REALIZE THAT A FRESH DOWNTURN IS UNDER WAY SOME QUITE SENSIBLE FOLKS IN FACT ARE CONVINCED THE ECONOMY STILL IS IN A RECESSION FEW PEOPLE ARE AS AWARE OF THE VAGARIES OF GOVERNMENT STATISTICS AS MR MOORE WHO SERVED AS COMMISSIONER OF LABOR STATISTICS IN THE BUREAU OF LABOR STATISTICS FROM 1969 TO 1973 SO HE WAS IMPRESSED BY THE FACT THAT HIS RELATIONSHIP EXISTED AT LEAST AS FAR BACK AS 1919 THE RELATIONSHIP ISN'T EXACTLY THE SAME BUT IT'S CLOSE APPLYING THE 191953 RELATIONSHIP TO THE NUMBERS FOR THE CURRENT UPTURN WOULD FORECAST AN EXPANSION LASTING A COUPLE OF MONTHS LONGER THE FACT THAT THE RELATIONSHIP HAS PERSISTED FOR AT LEAST THREEQUARTERS OF A CENTURY IS ESPECIALLY REMARKABLE WHEN YOU CONSIDER THAT THE PRIME RATE ISN'T WHAT IT USED TO BE THE PRIME RATE USED TO CHANGE WITH CONSIDERABLE FREQUENCY MOVEMENTS IN THE RATE EITHER UP OR DOWN OR EVEN SPECULATION ABOUT POSSIBLE CHANGES WERE FRONTPAGE NEWS IN THIS NEWSPAPER AND OTHERS SMALL BANKS HIGHLY UNLIKELY TO INFLUENCE THE NATIONAL ECONOMY GRABBED NATIONAL PUBLICITY IN SOME CASES BY BEING THE FIRST TO MOVE THE RATE EITHER UP OR DOWN IN SOME CASES SUCH BANKS WHICH REALLY HAD NO PRIME CUSTOMERS WOULD BACK DOWN WHEN NO ONE FOLLOWED THEM PRIME BORROWERS WERE THE LARGEST CUSTOMERS WITH THE BEST CREDIT RATINGS A CLASS OF BORROWERS THAT PRIMARILY PATRONIZED ONLY THE NATION'S LARGEST BANKS COMPETITION AMONG THE BANKS FOR SUCH BUSINESS WAS STIFF LEADING TO THE FREQUENT CHANGES IN RATES LATE IN THE 198290 EXPANSION IN FEBRUARY 1989 THE PRIME HIT 115 THEN IT BEGAN A STEADY DECLINE FALLING 10 TIMES UNTIL IT REACHED ITS CURRENT 6 LEVEL IN JULY 1992 THE OFFICIALLY REPORTED NUMBER HASN'T CHANGED SINCE THEN THAT DOESN'T MEAN THAT ALL THE BEST AND BIGGEST BORROWERS ARE PAYING A FLAT 6 SOME ARE PAYING LESS MANY ARE PAYING MORE MUCH DEPENDS ON THE BANKS' NEED FOR BUSINESS AND THE BORROWERS' NEED FOR FUNDS AS THIS NEWSPAPER'S MONEY RATE TABLE SAYS THE PRIME IS A BASE RATE AGAINST WHICH OTHER RATES ARE JUDGED ANY MOVEMENTS IN THE RATE AS WELL AS THE RATE'S CURRENT STABILITY CARRY A MESSAGE WHICH SEEMS TO BE QUITE AS SIGNIFICANT AS THE MESSAGES TRANSMITTED IN PREVIOUS YEARS BY THE RATE'S FREQUENT WILD SWINGS SO AS WE SAY MR CLINTON MAY BE ABLE TO RELAX THROUGH THE 1996 ELECTION IF HE PUTS ANY CREDENCE IN ECONOMIC FORMULAS PERHAPS HE CAN THINK OF IT AS A BELATED CHRISTMAS GIFT FROM THOSE FRIENDLY FELLOWS AT THE FEDERAL RESERVE 9312280025 931228 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY DECEMBER 15 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9312280024 931228 LEISURE & ARTS BOOKSHELF FAT BOY'S FATHER BY DICK TERESI THE EDITORS OF JAMES B CONANT'S HIGH SCHOOL YEARBOOK SENT HIM OFF TO COLLEGE WITH THIS INSCRIPTION WE SINCERELY HOPE HE WILL NOT BLOW UP THE LABORATORY AT HARVARD IN 1916 THE YOUNG HARVARDEDUCATED CHEMIST SET UP A PILOT PLANT IN QUEENS NY TO PRODUCE BENZOIC ACID AND IMMEDIATELY BURNED THE BUILDING TO THE GROUND A YEAR LATER CONANT AND TWO OTHER HARVARD GRADUATES OPENED A SECOND CHEMICAL PLANT IN NEW JERSEY WHICH THANKS TO CONANT'S SLOPPY TESTING PROCEDURES WAS PULVERIZED IN AN EXPLOSION KILLING THREE MEN INCLUDING ONE OF HIS PARTNERS WHILE CONANT HIMSELF WAS SAFELY ENSCONCED AT HARVARD TEACHING CHEMISTRY GIVEN SUCH EXPERIENCE IN BLOWING PEOPLE AND LARGE OBJECTS TO SMITHEREENS WHILE KEEPING A SAFE DISTANCE HIMSELF IT WAS ONLY FITTING THAT JAMES BRYANT CONANT WOULD EVENTUALLY BECOME ONE OF THE PRIME MOVERS OF THE MANHATTAN PROJECT WHICH BROUGHT THE WORLD INTO THE NUCLEAR AGE JAMES B CONANT HARVARD TO HIROSHIMA AND THE MAKING OF THE NUCLEAR AGE KNOPF 948 PAGES 35 IS A STUPENDOUSLY LONG BIOGRAPHY THAT TRACES THE CAREER OF A VERY ODD MAN WHO WENT FROM BEING A CHEMIST WHO MADE POISONOUS GAS TO A DISTINGUISHED PROFESSOR OF CHEMISTRY TO A LIBERALIZING PRESIDENT OF HARVARD TO THE RISKTAKING CHAIRMAN OF THE NATIONAL RESEARCH DEFENSE COMMITTEE WHICH RECOMMENDED THE CONSTRUCTION OF THE NUCLEAR BOMB TO HIGH COMMISSIONER IN GERMANY AFTER WORLD WAR II HE ENDED UP A NATIONAL EDUCATION GURU STUDYING AMERICA'S COMPREHENSIVE HIGH SCHOOLS DYING IN 1978 AUTHOR JAMES G HERSHBERG FORMERLY A REPORTER FOR UPI AND CURRENTLY THE COORDINATOR OF THE COLD WAR INTERNATIONAL HISTORY PROJECT AT THE WOODROW WILSON INTERNATIONAL CENTER FOR SCHOLARS HAS WRITTEN A HEAVILY RESEARCHED IF NOT ENTIRELY COMPREHENSIVE AND OFTEN ENTERTAINING ACCOUNT OF THE STRANGE AND TORTUROUS JOURNEYS OF THIS CHEMIST THIS HARVARD MAN THIS BUREAUCRAT WITH A BOMB MR HERSHBERG DESCRIBES CONANT AS SOME KIND OF WORKINGCLASS HERO GROWING UP IN MASSACHUSETTS WITH A PHOTOENGRAVER FOR A FATHER THOUGH HIS FATHER'S LINE TRAILED BACK TO ROGER CONANT WHO FOUNDED SALEM IN 1626 AND HIS MOTHER'S FAMILY WAS ON THE SHIP THAT FOLLOWED THE MAYFLOWER WAITING TO SEE HOW THE FIRST VESSEL FARED WAS A TYPICALLY PRUDENT GESTURE FOR A CONANT THE AUTHOR NOTES IT IS THE LONG SECTION ON HARVARD THAT IS THE JEWEL OF THIS BOOK MR HERSHBERG ALSO A HARVARD MAN IS REALLY IN HIS ELEMENT DETAILING THE PECULIAR CHARM OF PREWORLDWARI HARVARD OLD HANDS WERE APPALLED WHEN CONANT WAS NAMED PRESIDENT IN 1933 POSSESSING A SPECIFIC SKILL AND BODY OF KNOWLEDGE WAS CONSIDERED INAPPROPRIATE IN A COLLEGE ADMINISTRATOR AT THE TIME A FEELING THAT IS QUICKLY RETURNING IN OUR OWN ERA BUT HE DID MORE TO LIBERALIZE HARVARD THAN HIS LIBERALARTS PREDECESSORS CONANT MADE THE SCHOOL MORE OPEN TO THE UNWEALTHY HE MADE HARD WORK ACCEPTABLE IF NOT CHIC AND FACULTY PROMOTIONS WERE NO LONGER AUTOMATIC HE DIDN'T HAVE A HARD ACT TO FOLLOW HIS PREDECESSOR ONCE REFUSED MARIE CURIE AN HONORARY DEGREE BECAUSE SHE WAS A WOMAN CONANT'S RISE TO POWER AND INFLUENCE CORRESPONDED WITH THE RISE OF SCIENCE IN AMERICA FOLLOWING WORLD WAR I HIS POSITION AT HARVARD PUT HIM WITHIN FDR'S CIRCLE OF INFLUENCE AND HE BECAME THE LOGICAL CHOICE TO ASSIST VANNEVAR BUSH IN OVERSEEING THE MANHATTAN PROJECT THE PROJECT'S DIRECTOR J ROBERT OPPENHEIMER WRITES MR HERSHBERG WAS PLEASED TO FIND IN CONANT A GOVERNMENT BUREAUCRAT WHO COULD SPEAK HIS OWN LANGUAGE WHO COULD BOTH GRASP TECHNICAL INTRICACIES AND EMPATHIZE WITH SCIENTISTS' PHILOSOPHICAL CONCERNS IMAGINE FINDING SUCH A PERSON IN TODAY'S BUREAUCRACY BUT IF CONANT EVER RETAINED ANY VESTIGES OF HIS WORKINGCLASS HERITAGE THEY SOON WENT UP IN SMOKE DETERMINED TO DROP THE BIG ONE ON LIVE PEOPLE HE SUGGESTED TARGETING HIROSHIMA HARDLY THE MILITARY BASE MENTIONED IN THE PRESS RELEASE THIS DECISION ULTIMATELY PROVED TO BE A PUBLIC RELATIONS NIGHTMARE WHEN THE JOURNALIST JOHN HERSEY WROTE A POWERFUL REPORT IN THE AUG 31 1946 THE NEW YORKER DESCRIBING THE SHATTERED LIVES IN THE JAPANESE CITY THERE IS NO EVIDENCE THAT CONANT EVER EXPRESSED ANY MISGIVINGS OVER THE BOMBING AND HE EXPRESSED ONLY CONTEMPT FOR THOSE SCIENTISTS WHO HAVE PARADED THEIR SENSE OF GUILT WAS HE ONLY PRETENDING TO BE SO COLD THIS IS A THOUGHTPROVOKING BOOK BUT THERE ARE SOME PROBLEMS MR HERSHBERG DEALS CONANT A LOW BLOW BY MOCKING HIS OWN MEMOIR MY SEVERAL LIVES 1970 BECAUSE IT WEIGHS IN AT 701 PAGES IT LANDED WITH A THUD HE SAYS HAS MR HERSHBERG MEASURED HIS OWN BOOK WORSE HE CALLS CONANT ENIGMATIC ENIGMATIC AFTER A 35 COVER PRICE AND 948 PAGES I DO NOT WANT TO BE DEALING WITH AN ENIGMA BUT THE AUTHOR IS RIGHT CONANT REMAINS A MYSTERY AND YOU KNOW WHY BECAUSE BY HIS OWN ACCOUNT JAMES BRYANT CONANT WAS FIRST AND FOREMOST A CHEMIST AND GUESS WHAT THIS BIOGRAPHY DOESN'T COVER IT DOESN'T COVER CHEMISTRY SPECIFICALLY THE CHEMISTRY OF ONE JAMES BRYANT CONANT MR HERSHBERG ASSURES US THAT HE HAD AT LEAST A REASONABLE SHOT AT A NOBEL PRIZE BUT HE VIRTUALLY IGNORES CONANT'S ORIGINAL WORK HIDING A SUMMATION OF HIS LIFE AS A CHEMIST ON ONE HALF PAGE SCIENTISTS ARE PASSIONATE ABOUT THEIR WORK I WISH MR HERSHBERG HAD FOLLOWED CONANT'S PASSION IT MIGHT HAVE BEEN THE KEY HE WAS LOOKING FOR MR TERESI IS COAUTHOR OF THE GOD PARTICLE 9312280023 931228 ENTERPRISE GOVERNMENT WATCH STATE LAWS HELP FIRMS CUT INJURIES AND INSURANCE COSTS BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL STATE PRODDING HELPS BUSINESSES IMPROVE WORKER SAFETY A TEXAS LAW THAT TOOK EFFECT LAST YEAR REQUIRES CERTAIN EMPLOYERS WITH A HIGH LEVEL OF WORKPLACE INJURIES TO HIRE CONSULTANTS TO SHOW THEM HOW TO REDUCE WORKPLACE HAZARDS THEY THEN MUST IMPLEMENT SAFETYIMPROVEMENT PLANS IF THESE ARE APPROVED BY THE STATE THE COMPANIES MAY BE ABLE TO LEAVE THE STATE'S HIGHRISK INSURANCE FUND FOR LESSEXPENSIVE PRIVATE COVERAGE SO FAR ABOUT 1400 MOSTLY SMALL AND MEDIUMSIZE COMPANIES HAVE TAKEN PART IN THE PROGRAM ONE BENEFICIARY IS GLENN GRAHAM A SAN ANTONIO PLUMBING CONTRACTOR WHO SAYS HE HAS GOTTEN SOCKED IN RECENT YEARS WITH ROUGHLY 450000 IN CLAIMS FOR WORKERS' BACK INJURIES THE CLAIMS FORCED HIS SMALL COMPANY INTO THE STATE INSURANCE FUND AND DOUBLED HIS ANNUAL INSURANCE COSTS TO 47000 BUT AFTER PAYING 500 FOR A CONSULTANT TO HELP HIM SET UP A SAFETY PLAN HE EXPECTS THAT PREMIUM TO DROP BY 20 PARTLY AS A RESULT OF THE LAW TEXAS OFFICIALS SAY THE STATE'S ILLNESS AND INJURY RATES DECLINED TO 73 PER 100 EMPLOYEES LAST YEAR FROM 80 IN 1990 ELSEWHERE OREGON OFFICIALS ATTRIBUTE DOUBLEDIGIT DECLINES IN WORKERS'COMPENSATION COSTS IN PART TO A 1990 LAW REQUIRING WORKPLACESAFETY COMMITTEES MADE UP OF MANAGEMENT AND EMPLOYEE REPRESENTATIVES TO IDENTIFY AND MINIMIZE WORKPLACE HAZARDS MANY PARTICIPATING BUSINESSES ARE SMALL OR MEDIUMSIZE THOUGH THE LEGISLATION EXEMPTS EMPLOYERS IN LOWRISK CATEGORIES OR WITH 10 OR FEWER WORKERS ARKANSAS THIS YEAR PASSED A LAW MODELED IN PART AFTER TEXAS' THAT HAS ALREADY WON APPLAUSE FROM INSURERS CITING THE REFORMS THE NATIONAL COUNCIL ON COMPENSATION INSURANCE AN INDUSTRY GROUP THAT FILES RATE REQUESTS IN MORE THAN 30 STATES RECOMMENDS NO RATE INCREASE FOR ARKANSAS THIS YEAR AFTER A STUMBLE A FEDERAL BUSINESSWOMEN'S ADVOCATE SPRINTS AHEAD THE NATIONAL WOMEN'S BUSINESS COUNCIL SET UP BY CONGRESS FIVE YEARS AGO TO HELP WOMANOWNED BUSINESSES GOT OFF TO A SLOW START SAYS PATTY DEDOMINIC THE INCOMING PRESIDENT OF THE NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS MARY ANN CAMPBELL APPOINTED CHAIRMAN OF THE AGENCY IN THE SPRING BY PRESIDENT CLINTON AIMS TO CHANGE THAT BUT AN EARLY INITIATIVE INTERVENING IN A DISPUTE BETWEEN WOMAN BUSINESS OWNERS AND THE NATIONAL MINORITY SUPPLIER DEVELOPMENT COUNCIL FELL FLAT THE COUNCIL FORMED IN 1971 TO ENCOURAGE BIG CORPORATIONS TO GIVE MORE BUSINESS TO MINORITY SUPPLIERS HAD ORDERED SOME LOCAL CHAPTERS TO EXPEL BUSINESSES OWNED BY WHITE WOMEN AND OTHER NONMINORITY ENTREPRENEURS MS CAMPBELL A FINANCIAL PLANNER FROM LITTLE ROCK ARK WROTE IN A LETTER TO HARRIET MICHEL THE DEVELOPMENT COUNCIL'S PRESIDENT THAT THE EXCLUSIONARY ACTIONS RECOMMENDED BY YOUR ORGANIZATIONS WOULD APPEAR TO BE DIVISIVE AND SELFDEFEATING MS MICHEL RESPONDS THAT THE COUNCIL WAS MERELY ADHERING TO ITS MISSION BACKING DOWN MS CAMPBELL NOW SAYS SHE HAS BEEN PERSUADED THAT WOMANOWNED BUSINESSES SHOULD PURSUE THEIR OWN EFFORTS TO LINK UP WITH CORPORATIONS AT THE SAME TIME SHE PLANS SEVERAL UNDERTAKINGS TO HELP WOMAN BUSINESS OWNERS THE BUSINESS COUNCIL NOW AIMS TO DOUBLE THE PERCENTAGE OF FEDERAL PROCUREMENT DOLLARS GOING TO WOMANOWNED BUSINESSES TO 3 BY FISCAL 1996 SHE SAYS AND IT WILL CONTACT 50 MAJOR CORPORATIONS NEXT YEAR TO ASK THEM TO DO MORE SHE ADDS THE AGENCY WHICH HAS AN ANNUAL BUDGET OF ONLY 500000 WILL ALSO CONTINUE HOLDING MEETINGS BETWEEN LENDERS AND WOMEN BUSINESS OWNERS REGARDING WOMEN'S PROBLEMS IN OBTAINING CAPITAL AND CREDIT MS DEDOMINIC THE WOMEN'S ASSOCIATION PRESIDENT PRAISES MS CAMPBELL'S EFFORTS AS AN EXCELLENT START FIRE SAFETY FLARES AS A DAYCARE ISSUE IN ILLINOIS HOME PROVIDERS OF DAY CARE ARGUE THAT THE STATE'S DEPARTMENT OF CHILDREN AND FAMILY SERVICES WHICH LICENSES THEM SHOULD HANDLE FIRE INSPECTIONS TOO THOUGH THE DEPARTMENT CHECKS FIRESAFETY FEATURES IN SMALLER HOMES IT DELEGATED THE DUTY TO STATE AND LOCAL FIRE OFFICIALS FOR HOMES SERVING MORE THAN EIGHT CHILDREN KAREN BOYDEN PRESIDENT OF THE ILLINOIS STATE HOME DAY CARE ASSOCIATION A TRADE GROUP SAYS HUNDREDS OF SMALL FACILITIES HAVE GONE OUT OF BUSINESS BECAUSE THEY HAVE BEEN UNABLE TO PAY FOR STRICT STANDARDS THAT FIRE OFFICIALS OFTEN REQUIRE SHE ALSO COMPLAINS THAT INSPECTORS' INTERPRETATIONS OF THE LAW CAN VARY WIDELY LEADING TO UNPREDICTABLE DECISIONS SHE CITES ONE ILLINOIS PROVIDER WHOSE HOME GOT FIRE CLEARANCE IN 1992 THIS YEAR HOWEVER AN INSPECTOR FLUNKED HER CLAIMING THAT HER BASEMENT WINDOWS WEREN'T THE PROPER HEIGHT AND THAT HER HOME HAD NO FIRE DOOR BETWEEN THE BASEMENT AND FIRST FLOOR A STATE TASK FORCE OF GOVERNMENT OFFICIALS AND CHILDCARE PROVIDERS CREATED BY THE LEGISLATURE TO DECIDE WHO SHOULD DO THE INSPECTIONS FAILED TO RESOLVE THE ISSUE THOUGH STATISTICS ON FIRES IN HOMES THAT PROVIDE DAY CARE AREN'T AVAILABLE THE NATIONAL FIRE PROTECTION ASSOCIATION A NONPROFIT BOSTON ORGANIZATION THAT SETS FIRESAFETY STANDARDS SAYS HUNDREDS OF FIRES OCCUR AT DAYCARE CENTERS NATIONALLY EACH YEAR THESE PRESUMABLY INCLUDE HOME FACILITIES MANY STATES ARE STRICTER THAN ILLINOIS IN ENFORCING FIRE SAFETY ARKANSAS REQUIRES BOTH STATE FIRE AND STATE HEALTH INSPECTIONS FOR HOMES LICENSED FOR MORE THAN 10 CHILDREN MEANWHILE THE ILLINOIS TOWN OF HAZEL CREST HAS MOVED TO TIGHTEN ITS SCRUTINY OF LOCAL HOMES LAST WEEK IT PASSED A LAW REQUIRING ITS FIRE DEPARTMENT TO DOUBLE THE FREQUENCY OF INSPECTIONS OF DAYCARE HOMES TO FOUR A YEAR CONDITIONS CAN CHANGE RAPIDLY IN A DWELLING SAYS FIRE CHIEF DOUGLAS CHAPPELL HE NOTES THAT FURNITURE GETS MOVED AND SMOKEDETECTOR BATTERIES KONK OUT SMALL TALK ONLY 35 OF BLACK WORKERS WERE SELFEMPLOYED IN UNINCORPORATED NONAGRICULTURAL BUSINESSES IN 1992 COMPARED WITH 8 OF WHITES THE BUREAU OF LABOR STATISTICS REPORTS THE US SMALL BUSINESS ADMINISTRATION CITING LOSSES FROM MIDWEST FLOODING AND HURRICANES INIKI AND ANDREW APPROVED A RECORD 8113 MILLION IN DISASTER LOANS TO BUSINESSES FOR THE FISCAL YEAR ENDED SEPT 30 THE TOTAL TOPPED THE PREVIOUS HIGH OF 6582 MILLION IN 1973 MOSTLY RESULTING FROM HURRICANE AGNES 9312280022 931228 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 85 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SMITH BARNEY SHEARSON INC THE OFFERING SERIES 1664 IS BACKED BY THE AGENCY'S 30YEAR 9 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 965 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 310 MONTHS 9312280021 931228 LETTERS TO THE EDITOR WHAT DO THE SIMPLE FOLK DO IN THE MARKETPLACE JUDGING FROM YOUR EDITORIAL ON THE APPLE/WILLIAMSON COUNTY FLAPDOODLE BITE OF THE APPLE DEC 9 IT SEEMS ABOUT THE WORST THING ONE CAN BE CALLED IS WORLDY AFTER A SNEERING REFERENCE TO TEXAS GOV ANN RICHARDS WHO WORKED TO LIFT WILLIAMSON'S FATWA AGAINST APPLE'S GAY EMPLOYEES AS A WORLDLY WOMAN YOU UNFAVORABLY COMPARE CORPORATE AMERICA'S WORLDLY SOPHISTICATES WHICH WE ASSUME INCLUDES APPLE'S HOMOSEXUAL BENEFICIARIES WITH THE SALTOFTHEEARTH TYPES THAT INHABIT HAMLETS LIKE GEORGETOWN TEXAS THEY DON'T MISS MANY WORK DAYS AND THEY WORK HARD YOU RHAPSODIZE ABOUT THESE SIMPLE FOLK THEY CAN SPELL AND DO ARITHMETIC ACCURATELY WELL GOOD FOR THEM BUT I ASSUME APPLE'S HOMOSEXUAL EMPLOYEES ARE ALSO CAPABLE OF THESE BASIC FUNCTIONS IN FACT THEY MUST BE CAPABLE OF A GREAT DEAL MORE THAN THAT OTHERWISE THE MAJOR CORPORATION FOR WHOM THEY WORK WOULD PROBABLY CONSIDER REPLACING THEM WITH MEMBERS OF THE GODFEARING INDIGENOUS WORK FORCE INSTEAD OF OFFERING THEM SUCH A SWEET DEAL TO RELOCATE TO GEORGETOWN TEXAS IT MAY JUST BE THAT WHEN RUNNING A HUGE COMPUTER CORPORATION THAT LIVES OR DIES BY THE INTELLIGENCE AND SKILL OF ITS EMPLOYEES WORLDLINESS IS NOT SUCH A BAD THING AS FOR WORLDLINESS'S OPPOSITE QUALITY PROVINCIALISM IN THE BUSINESS WORLD IT IS GOING THE WAY OF THE UNIVAC NOT TO MENTION THE HORSE AND BUGGY AS CORPORATE POLICY BEGINS TO REFLECT THE ETHICS OF THE BOOMERS AND POSTBOOMERS WHO ARE TAKING CORPORATIONS OVER AND AS IN APPLE'S CASE CREATING THEM THE REAGANBUSH ERA ALLIANCE OF FREEMARKETERS AND EVANGELICAL CHRISTIANS IS SHREDDING LEAVING ON THE ONE HAND THOSE WHO CLAMOR FOR BIBLICAL STANDARDS IN AMERICAN LIFE AT ANY COST AND THOSE WHO BELIEVE IN THE JUSTICE OF THE MARKETPLACE ON THE OTHER IT AMAZES ME THAT THE JOURNAL OUR PREEMINENT CHRONICLER OF AMERICAN BUSINESS LIFE SHOULD CHOOSE TO SIDE WITH THE FORMER RATHER THAN THE LATTER 9312280020 931228 HEARD ON THE STREET SHORTSELLERS SET TO CATCH TUMBLING OVERVALUED STOCKS BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THIS TIME THEY REALLY MEAN IT AS A NEW YEAR BECKONS THE BEARISH INVESTORS KNOWN AS SHORTSELLERS ARE ONCE AGAIN PLACING THEIR BETS AGAINST STOCKS THEY CLAIM ARE ABOUT TO PLUMMET HAVING ENDURED THREE PUNISHING YEARS OF RISING STOCK PRICES THE SHORTS MAINTAIN THAT 1994 WILL FINALLY BE THE YEAR WHEN MANY OVERVALUED OVERHYPED STOCKS TAKE A TUMBLE SOME OF THE SHORTS ARE BETTING AGAINST MERRILL LYNCH AND OTHER BROKERAGECOMPANY STOCKS HOPING FOR A BEAR MARKET SOME THINK THEY SEE PROBLEMS AHEAD FOR HIGHFLYING EDUCATION ALTERNATIVES WHICH RUNS ONLY A HANDFUL OF PUBLIC SCHOOLS BUT HAS A MARKET VALUE OF 200 MILLION THE LIST GOES ON IF ONLY THE STOCK MARKET WOULD COOPERATE YOU USUALLY GET A DOWN MARKET IN ONE OF THE FIRST TWO YEARS OF A PRESIDENTIAL TERM AND IF YOU DON'T GET IT THE FIRST YEAR USUALLY THE SECOND YEAR IS A BIG DOWNER CONTENDS MICHAEL MURPHY EDITOR OF OVERPRICED STOCK SERVICE NEWSLETTER IN HALF MOON BAY CALIF HE EXPECTS COMPANIES TO REPORT HEALTHY EARNINGS FOR THE 1993 FOURTH QUARTERBUT IN HIS VIEW IT'LL BE MERELY ONE LAST HURRAH BEFORE A DOWNTURN NO ONE HOPES SO MORE THAN JAMES CHANOS OF KYNIKOS ASSOCIATES PROBABLY THE BIGGEST SHORTSELLER LEFT ON WALL STREET WITH ABOUT 200 MILLION UNDER MANAGEMENT MR CHANOS IS A SHARP INVESTOR AND GOOD WRITER THE PETER LYNCH OF THE SHORT SIDE ACCORDING TO HIS FANS BUT HE HAS HAD A LOUSY 1993 AS HIS BEARISH BETS AGAINST EVERYTHING FROM TRENDY RESTAURANT STOCKS TO MCDONNELL DOUGLAS HAVE GONE WRONG TRADERS FAMILIAR WITH HIS FLAGSHIP URSUS PARTNERS SAY THE PARTNERSHIP WILL PROBABLY END '93 WITH LOSSES OF 35 TO 40 COMPARED WITH THE AVERAGE 3 GAIN THAT SHORTSELLERS ARE EXPECTED TO POST FOR THE YEAR ONE REASON FOR THE CHANOS LOSSES IS THAT UNLIKE HIS PEERS INCLUDING THE WELLKNOWN FESHBACH BROTHERS MR CHANOS HAS STAYED 100 ON THE SHORT SIDE OF THE MARKET IN AN ESSAY SENT TO HIS INVESTORS HEADLINED WHY WE STAY SHORT MR CHANOS CONCEDES THAT HIS 100BEARISH STRATEGY HAS BEEN TOTALLY WRONG TO PUT IT MILDLY PARTICULARLY THIS YEAR BUT HE DOESN'T WANT TO CASH IN HIS BEARISH CHIPS JUST YET HE WRITES IN SHORT NO PUN INTENDED OUR VIEW REMAINS THAT WELLRESEARCHED SITUATIONS ON THE SHORT SIDE NOW REPRESENT ONCEINAGENERATION IF NOT ONCEINALIFETIME OPPORTUNITIES WE DON'T KNOW WHEN WE WILL PROFIT BY THEM ONLY THAT THE ODDS ARE INCREASING THAT WE WILL MR CHANOS DECLINED TO BE INTERVIEWED THE SHORTS BLAME TRENDCHASING MUTUAL FUNDS AND OTHER MOMENTUM INVESTORS FOR PROPPING UP SHARE PRICES TO THIS POINT THE TORRENT OF CASH THAT HAS WASHED INTO MUTUAL FUNDS HAS MADE IT EASY FOR RISING STOCKS TO RISE SOME MORE THE SHORTS COMPLAIN THAT IT USUALLY TAKES A SCANDAL OR A STARTLING DISAPPOINTMENT IN EARNINGS BEFORE THE MARKET'S TRENDY STOCKS FINALLY START GOING THE OTHER WAY SOME SHORTS ARE BETTING AGAINST CALIFORNIA REALESTATE STOCKS DESPITE THE VIEW IN VARIOUS QUARTERS OF WALL STREET THAT THE STATE'S HARDHIT PROPERTY MARKET IS RECOVERING AMONG THE BEARISH BETS HF AHMANSON BANKAMERICA CITY NATIONAL BANK FIRST INTERSTATE GREAT WESTERN FINANCIAL AND WELLS FARGO THE FEDERAL SCRUTINY OF THE INDIANTRIBE CASINO INDUSTRY AMID ALLEGATIONS THAT THE TRIBES ARE GETTING A RAW DEAL FROM OUTSIDE CONSULTANTS HAS SHORTS SCRAMBLING TO BET AGAINST CASINO COMPANIES WITH EXPOSURE IN THE AREA SOME ARE SHORTING GRAND CASINOS GAMING CORP OF AMERICA AND SODAK GAMING EVEN IF SUCH COMPANIES HAVEN'T DONE ANYTHING WRONG THE TRIBES WILL INCREASINGLY WANT TO RUN THINGS THEMSELVES SAYS ONE BIG NEW YORK SHORTSELLER WHAT NOBODY ON WALL STREET SEEMS TO UNDERSTAND IS THAT THE EARNINGS OF CERTAIN COMPANIES ARE GOING TO BE HIT THIS BEAR CONTENDS MR HOLMES WHO IS SAID TO BE UP ABOUT 20 FOR THIS YEAR WOULD PREFER TALKING ABOUT HIS SHORT BETS THAT PAID OFF INCLUDING STORAGE TECHNOLOGY US SURGICAL POLICY MANAGEMENT SYSTEMS AND COUNTRYWIDE CREDIT INDUSTRIES I'M STILL SHORT ALL OF THEM HE SAYS ADDING ABOUT SHORTSELLING IN GENERAL OUR DAY'S ACOMIN' THE FACT IS IT'S BEEN A TERRIBLE MARKET FOR SHORTS THE PAST THREE YEARS BECAUSE YOU'VE HAD A VARIETY OF PARTS OF THE MARKET RALLY ONE BY ONE SAYS PETER DAPUZZO HEAD OF THE NEW YORK OFFICE AND OVERTHECOUNTER INTERNATIONAL TRADING AT CANTOR FITZGERALD SO THE SHORTS HAVEN'T HAD A PLACE TO HIDE MR DAPUZZO SAYS IT'S FINE TO CONTINUE TO POINT TO STOCKS' SEEMINGLY HIGH VALUATIONS BUT ALL I KNOW IS THE BETTING IS STILL WITH THE PEOPLE WHO HAVE CAPITAL AND THE CAPITAL IS STILL WHERE THE LONG' NAMELY BULLISH INVESTORS ARE SHORTSELLERS BET AGAINST STOCKS BY BORROWING SHARES AND THEN IMMEDIATELY SELLING THEM HOPING THEY'LL BE ABLE TO REPLACE THE BORROWED STOCK LATER AT LOWER PRICES WILL LYONS WHO EDITS SHORT ON VALUE NEWSLETTER IN ATLANTA MAINTAINS BEARISH BETS AGAINST SNAPPLE BEVERAGE AND SOME OTHER STOCKS THAT HAVE BEEN DRAWING FIRE FROM THE BEARS FOR A WHILE BUT THERE ARE PLENTY OF OTHER NASDAQTRADED HIGHFLIERS THAT HE SAYS WILL FALL IN '94 INCLUDING PLAYERS INTERNATIONAL AND BED BATH & BEYOND THE LATTER STOCK IS TRADING AT A HEADY 55 TIMES REPORTED EARNINGS WHEN GROWTH SLOWS EVEN SLIGHTLY MR LYONS WRITES ABOUT BED BATH & BEYOND MOMENTUM PLAYERS WILL WISH THEY'D HAD MO' SENSE THAN TO BUY THIS STOCK THE PROBLEM IS IT'S EASIER TO MOCK AN OVERVALUED STOCK THAN TO KNOW WHEN IT WILL ACTUALLY GO DOWN JIM GRANT WHOSE GRANT'S INTEREST RATE OBSERVER NEWSLETTER HAS SKEWERED SUCH HIGHFLIERS AS DISCOVERY ZONE BOSTON CHICKEN AND ALLPRO PRODUCTS SAYS THERE'S NO QUESTION THIS IS FAMINE TIME FOR DOUBT FOR SKEPTICISM IN THE MARKET INSTEAD OF EVEN TRYING TO GUESS WHEN THE MARKET'S BULL RUN WILL END HE HAS GIVEN UP AND CONCENTRATED ON THE COMMODITY MARKETS HE'S BULLISH ON SOYBEANS NICKEL SILVER GOLD AND COTTON SIMILARLY SOME ONCEMIGHTY SHORTS HAVE EFFECTIVELY THROWN IN THE TOWEL THE FESHBACHS ONCE THE BIGGEST BEARS WITH A WAR CHEST OF NEARLY 1 BILLION ARE SAID TO BE DOWN TO 120 MILLION MOST OF WHICH IS ON THE LONG SIDE ANYWAY THEY DIDN'T RETURN A PHONE MESSAGE MR MURPHY HAD 40 MILLION UNDER MANAGEMENT IN 1992 BUT IS DOWN TO ABOUT 1 MILLION AFTER A BIG INVESTOR THE STATE OF VIRGINIA PULLED OUT MR MURPHY STILL IS WIDELY FOLLOWED THROUGH HIS NEWSLETTER HE SAYS HE IS INCREASINGLY SHORTING HIGH MO STOCKS OR STOCKS THAT ARE RISING ALMOST PURELY ON MOMENTUM ON HIS LIST LONE STAR STEAKHOUSE OUTBACK STEAKHOUSE PARAMETRIC TECHNOLOGY SNAPPLE AND STARBUCKS STILL UNLIKE THE FULLY COMMITTED MR CHANOS MR MURPHY IS ONLY 35 SHORT THE MARKET AT THIS POINT YOU CAN'T FIGHT THE TAPE MR MURPHY SAYS MR CHANOS HAD 400 MILLION A LITTLE OVER A YEAR AGO BUT HAS HALF THAT NOW HE IS TELLING TRADERS HOWEVER THAT HE'S HAPPY THAT INVESTORS HAVEN'T ACTUALLY PULLED THEIR CAPITAL THIS YEAR THE DECLINE IN ASSETS IS BECAUSE OF THE '93 INVESTMENT LOSSES WHY STAY SHORT MR CHANOS ASKS IN HIS LETTER TO INVESTORS BECAUSE IT'S IMPOSSIBLE HE SAYS TO SIMPLY WAIT FOR SOME SIGNAL OR BELL AND REENTER THE MARKET ON THE SHORT SIDE MANY INVESTORS KEEP PLAYING WHAT WE FEEL IS A BADODDS GAME OPERATING UNDER THE DUAL ASSUMPTION THAT THE OTHER GUY IS A PESSIMIST AND THAT WHEN THE TIME COMES SOME SIGNAL WILL EMERGE TO GET THEM TO THE SIDELINES OF SAFETY BUT BELLS WHISTLES AND TRIGGERS ARE ONLY USUALLY CLEAR WITH HINDSIGHT 9312280019 931228 SMALL STOCK FOCUS STOCKS END HIGHER IN THIN TRADING ANALYSTS SEE PICKUP AFTER NEW YEAR BY LARRY BAUMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS ENDED A THINLY TRADED SESSION GENERALLY HIGHER BUT LAGGED WELL BEHIND THE BIG BOARD'S BLUECHIP ISSUES ANALYSTS WERE QUICK TO NOTE HOWEVER THAT THE DOW JONES INDUSTRIAL AVERAGE'S MOVE INTO RECORD TERRITORY CAME ON UNUSUALLY LIGHT VOLUME THEY SUGGESTED THAT ONCE PAST THE NEW YEAR SMALLCOMPANY STOCKS WILL SHOW A SIGNIFICANT PICKUP IN PERFORMANCE THE RUSSELL 2000 INDEX WHICH TRACKS SMALLCAPITALIZATION STOCKS TRADED ON THE MAJOR EXCHANGES AND OVER THE COUNTER WAS UP 111 OR 04 ENDING YESTERDAY AT ITS SESSION HIGH OF 25243 THE NASDAQ COMPOSITE INDEX ROSE 236 OR 03 TO 76106 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX AT 26007 WAS UP 158 OR 06 THE DOW JONES INDUSTRIAL AVERAGE ROSE 3521 OR 09 TO CLOSE AT A RECORD 379293 ON NASDAQ GAINERS OUTPACED DECLINERS 1523 TO 1344 ON LIGHT VOLUME OF 180 MILLION SHARES COMPARED WITH LAST THURSDAY'S VOLUME OF 246 MILLION NASDAQ STOCK MARKET VOLUME WAS 148 MILLION DOWN FROM THURSDAY'S LIGHT VOLUME OF 200 MILLION SHARES SINGAPORE FUND WAS UP 3 7/8 OR 195 TO 23 3/4 STOCK PRICES SURGED AGAIN YESTERDAY IN SINGAPORE ALSO THE CLOSEDEND SINGAPORE FUND ANNOUNCED YESTERDAY THAT ITS NET ASSETS AS OF OCT 31 WERE 1723 A SHARE UP FROM 1038 A YEAR EARLIER OSHMAN'S SPORTING GOODS ROSE 1/2 OR 77 TO 7 AFTER THE COMPANY SAID IT WILL RECORD A PRETAX RESTRUCTURING CHARGE OF 15 MILLION FOR THE FOURTH QUARTER THE CHARGE IS A RESULT OF PLANS TO CLOSE 33 UNDERPERFORMING STORES OVER THE NEXT TWO YEARS PART OF A STRATEGY TO FOCUS ON ITS MORE PROFITABLE MEGASTORES ALTHOUGH THE COMPANY EXPECTS ITS FOURTHQUARTER OPERATIONS TO BE PROFITABLE IT SAID THE CHARGE WILL RESULT IN A LOSS FOR THE QUARTER AMGEN GAINED 1 3/4 OR 38 TO 48 1/4 AFTER A BARRON'S ARTICLE CONTENDING INVESTOR DISENCHANTMENT WITH THE BIOTECH COMPANY MAY BE MISGUIDED DIAL PAGE ROSE 1 3/8 OR 36 TO 39 1/4 AFTER THE WALL STREET JOURNAL REPORTED THAT THE COMPANY IS A LEADINGEDGE FIRM FOR INVESTORS LOOKING AT INTEGRATED TELECOMMUNICATIONS STOCKS LIPOSOME TECHNOLOGY WAS DOWN 1 3/4 OR 175 AT 8 1/4 AFTER THE COMPANY SAID IT DECIDED TO DELAY COMMERCIALIZATION ACTIVITIES IN THE UNITED KINGDOM FOR AMPHOCIL ITS PRODUCT FOR TREATING SYSTEMIC FUNGAL INFECTIONS THE COMPANY SAID THE DELAY WILL ALLOW THE APPLICATION OF MORE APPROPRIATE EVALUATION STANDARDS TO A PORTION OF THE PREVIOUSLY SUBMITTED DATA TO ENSURE THE CONSISTENCY OF ALL DATA PRIOR TO FILING A EUROPEAN MULTISTATE APPLICATION ONCOR FELL 1/4 OR 24 TO 10 THE COMPANY LATE LAST THURSDAY SAID IT FILED FOR A THREE MILLION SHARE OFFERING IN THE THIRD QUARTER THE COMPANY HAD AN AVERAGE OF 157 MILLION SHARES OUTSTANDING IN YESTERDAY'S MARKET CLEARLY THE FOCUS WAS ON THE BIG ISSUES MAINLY CYCLICALS AND OIL AND GAS COMPANIES SAID ALAN ACKERMAN MARKET STRATEGIST AT REICH & CO WHILE THE BLUE CHIPS ARE MOVING HIGHER SMALL STOCKS ARE LANGUISHING MR ACKERMAN SAID WITH NO CLEAR LEADERSHIP TO LEAD PRICES HIGHER HE SAID ENDOFYEAR SELLING PRESSURE COULD TAKE SMALL STOCKS LOWER INTO THE NEW YEAR DON HAYS INVESTMENT STRATEGIST AT WHEAT FIRST BUTCHER & SINGER SAID THAT WHILE SMALLCAPITALIZATION STOCKS LAGGED BEHIND THE BLUECHIP ISSUES YESTERDAY HE SEES SMALLCOMPANY STOCKS PICKING UP GROUND SOON REICH & CO'S MR ACKERMAN ALSO EXPECTS TO SEE SMALLCOMPANY STOCKS GAINING MOMENTUM THE SMALLER STOCKS STILL HAVE A WAYS TO GO THE GAME IS NOT OVER FOR SMALL STOCKS MR HAYS SAID MANY OF THE SMALLER TECHNOLOGY AND TELECOMMUNICATIONS ISSUES THAT FADED LATE IN THE YEAR HAVE BOTTOMED OUT AND ARE STARTING TO ACT A LITTLE BETTER MR HAYS ALSO EXPECTS TO SEE SMALL INDUSTRIALPRODUCT COMPANIES TAKING A LEADERSHIP ROLE IN THE SMALLCAPITALIZATION MARKET HE NOTES THAT THE 288 OR 037 INCREASE POSTED YESTERDAY BY THE NASDAQ INDUSTRIAL INDEX WAS SOMEWHAT STRONGER THAN THE NASDAQ COMPOSITE'S GAIN INDUSTRIALS ARE STARTING TO PICK UP THE BALL AND RUN SAID MR HAYS WHO ADDED THAT THE MARKET TRENDS WILL BECOME MORE APPARENT AFTER THE NEW YEAR WHEN TRADING GETS BACK TO MORE NORMAL LEVELS 9312280017 931228 CREDIT MARKETS BOND PRICES EASE IN LIGHT TRADING AS PLAYERS GIVE LITTLE WEIGHT TO PENDING ECONOMIC DATA BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE PRICE OF THE 30YEAR TREASURY BOND EDGED LOWER YESTERDAY IN LIGHT TRADING WITH MOST INVESTORS CONVINCED THAT THIS WEEK'S ECONOMIC REPORTS AREN'T IMPORTANT ENOUGH TO DISTURB THEIR HOLIDAYS MANY MONEY MANAGERS AND PROFESSIONAL TRADERS ARE ON VACATION HAVING WRAPPED UP 1993'S BOOKS IN THE BELIEF THAT THE NEXT SIGNIFICANT MOVEMENT IN TREASURY PRICES WILL DEPEND ON ECONOMIC DATA FOR THE FIRSTQUARTER OF 1994 WITH SO FEW PLAYERS IN THE MARKET YESTERDAY EXPERTS LARGELY SHRUGGED OFF A DECLINE OF NEARLY 1/4 POINT IN THE BENCHMARK LONG BOND THE 30YEAR BOND CLOSED AT 100 6/32 TO YIELD 623 UP FROM 621 THURSDAY THE MARKET WAS CLOSED FRIDAY FOR CHRISTMAS IT'S NOT TAKING MUCH IN THE WAY OF ACTIVITY TO MOVE IT ONE WAY OR ANOTHER SAID JACK UTTER SENIOR PORTFOLIO MANAGER WITH IDS FIXED INCOME ADVISERS OF MINNEAPOLIS THE KEY NOW IS THE FIRSTQUARTER AND WHETHER IT SLACKENS FROM THE FOURTHQUARTER PACE HE SAID THE FOLKS STILL BULLISH IN THE BOND MARKET ARE BASING THEIR BULLISHNESS ON THE EXPECTATION THAT FIRSTQUARTER GROWTH IN REAL GROSS NATIONAL PRODUCT WILL SLOW DOWN FROM THE PACE EXPERIENCED IN THE FOURTHQUARTER WHILE THE LONG BOND'S PRICE FELL THE PRICES OF THE ONEYEAR AND SEVENYEAR ISSUES ROSE SLIGHTLY THE FIVEYEAR AND 10YEAR TREASURYS FELL SLIGHTLY IN PRICE THE TWOYEAR AND THREEYEAR ISSUES ENDED UNCHANGED IT'S SO QUIETTHERE IS NOBODY AROUND ZANE BROWN DIRECTOR OF FIXED INCOME FOR LORD ABBETT & CO SAID YESTERDAY AFTERNOON SCANNING A PHONE CONSOLE THAT UNCHARACTERISTICALLY SHOWED NO BUTTONS LIT EXCEPT THE ONE ON WHICH HE SPOKE WITH SO MANY PEOPLE ON VACATION MANY INVESTORS WHO REPORTED TO WORK WERE UNWILLING TO TAKE NEW POSITIONS UNTIL THERE'S LIQUIDITY MR BROWN SAID TRADING VOLUME ON GOVPX A TREASURY PRICING SERVICE WAS JUST OVER 23 BILLION YESTERDAY THAT WAS THE LOWEST LEVEL FOR ANY FULL TRADING SESSION THIS YEAR AND COMPARES WITH A DAILY AVERAGE OF MORE THAN 60 BILLION GOVPX CLAIMS TO CAPTURE MORE THAN 60 OF THE DAILY VOLUME OF THE TREASURY MARKET THE MARKET SHRUGGED OFF A REPORT ON MACHINETOOL ORDERS THOSE ORDERS FELL 4 IN NOVEMBER FROM OCTOBER ALTHOUGH THEY WERE UP 50 FROM NOVEMBER 1992 TODAY THE MARKET WILL SEE A REPORT ON CONSUMER CONFIDENCE FOR THIS MONTH AND TOMORROW WILL COME NOVEMBER'S DATA ON EXISTINGHOME SALES AND LEADING ECONOMIC INDICATORS ON FRIDAY THERE ARE REPORTS ON INITIAL JOBLESS CLAIMS AND NEWHOME SALES EVEN IF THOSE REPORTS COME IN MUCH STRONGER THAN EXPECTED MOST INVESTORS ARE EXPECTED TO IGNORE THEM ONE OF THE KEY ISSUES FOR BOND INVESTORS IS WHETHER THE FEDERAL RESERVE BOARD WILL MOVE TO RAISE SHORTTERM INTEREST RATES IN AN INFLATIONFIGHTING EFFORT AND MANY INVESTORS BELIEVE THE FED WON'T ACT UNLESS THERE ARE SIGNS OF INFLATION RATHER THAN SIGNS OF ECONOMIC STRENGTH ALONE SAID MR BROWN OF LORD ABBETT THESE INVESTORS BELIEVE THE FED WILL MONITOR THE CONSUMER AND PRODUCER PRICE INDEXES NEXT QUARTER FOR SUCH SIGNS STILL OTHER INVESTORS BELIEVE THE FED ANTICIPATING INFLATION ALREADY MAY HAVE AGREED ON INFLATIONFIGHTING ACTION IN WHICH CASE THIS WEEK'S NEWS WOULD ALSO BECOME IRRELEVANT DAVID ADER SENIOR MARKET STRATEGIST FOR TECHNICAL DATA OF BOSTON SAID THAT IT IS UNREASONABLE TO EXPECT DRAMATIC ACTIVITY IN THE NEXT FEW DAYS NONETHELESS HE ANTICIPATES SOME ACTIVITY FROM PEOPLE WHO WANT TO START THEIR 1994 BUYING EARLY WITH THE AMOUNT OF CASH ON THE SIDELINES WE SEE SOME OF THAT HAPPENING AND IT WON'T TAKE MUCH TO PUSH THE MARKET HIGHER HERE ARE THE RESULTS OF THE SALE RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED DEC 30 THE 13WEEK BILLS MATURE MARCH 31 1994 AND THE 26WEEK BILLS MATURE JUNE 30 1994 THE CORPORATEBOND MARKET WAS AT A NEAR STANDSTILL AS MOST INVESTMENTBANKING FIRMS OPERATE WITH MINIMUM STAFF UNTIL THE NEW YEAR BEGINS THE ONLY NEW ISSUANCE YESTERDAY WAS 25 MILLION OF FEDERAL HOME LOAN BANK SYSTEM PAPER THROUGH PRUDENTIAL SECURITIES INC IN SOME OF THE LIMITED NEWISSUE ACTION ANTICIPATED THIS WEEK ICF KAISER INTERNATIONAL INC AN ENVIRONMENTALCONSULTING FIRM IS SLATED TO PRICE 125 MILLION OF JUNK BONDS TODAY THE DEBT WILL BE IN UNITS INCLUDING SENIOR SUBORDINATED NOTES AND WARRANTS FOR 25 OF THE COMPANY'S EQUITY DILLON READ & CO WILL BE THE LEAD MANAGER FOR THE OFFERING SYNDICATE OFFICIALS ARE STARTING TO LOOK TO 1994 EXPECTED IN JANUARY IS A DEBT OFFERING OF AT LEAST 600 MILLION FROM EASTMAN CHEMICAL CO WHICH IS TO BE SPUN OFF FROM EASTMAN KODAK CO ON JAN 1 THE OFFERING WILL FUND THE INITIAL CAPITALIZATION OF THE CHEMICAL COMPANY GOLDMAN SACHS & CO WILL BE THE LEAD MANAGER FOR THE OFFERING WHICH IS EXPECTED TO HAVE AT LEAST TWO CLASSES ONE WITH AN INTERMEDIATE MATURITY AND ONE WITH A LONGTERM MATURITY THERE WILL BE A LIMITED ROAD SHOW FOR THE OFFERING BEGINNING LATE NEXT WEEK THE DEBT IS RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP IN THE INVESTMENTGRADE AND JUNKBOND MARKETS SPREADS REMAINED UNCHANGED RELATIVE TO TREASURYS IN EXTREMELY THIN TRADING PRICES OF MUNICIPAL BONDS ENDED UNCHANGED TO SLIGHTLY HIGHER IN VERY THIN TRADING ALTHOUGH THE MARKET IS SLUMBERING UNTIL THE END OF THE YEAR MUNIS HAVE A STRONG TONE DUE TO LINGERING BUYING INTEREST AHEAD OF THE HEAVY BOND CALLS AND REDEMPTIONS EARLY NEXT MONTH THAT WILL PARE SUPPLY A GRADUAL SLOWDOWN IN ISSUANCE IN THE LAST FEW WEEKS HAS FANNED CONCERNS ABOUT A SUPPLY SHORTAGE AND HELPED PROP UP PRICES IN THE SECONDARY MARKET MUNI SPECIALISTS SAY IN SECONDARY ACTIVITY THE FLORIDA BOARD OF EDUCATION'S 520 BONDS OF 2023 FINISHED AT 97 1/2 UP 1/8 POINT FROM THURSDAY'S CLOSING LEVEL TO YIELD 535 IN THE PRIMARY MARKET FEW OFFERINGS ARE EXPECTED TO BE PRICED THIS WEEK IN THE NEXT FEW DAYS MERRILL LYNCH & CO GROUPS MAY PRICE SAN BERNARDINO COUNTY CALIF'S 289 MILLION OF CERTIFICATES OF PARTICIPATION AND THE REEDY CREEK FLORIDA IMPROVEMENT DISTRICT'S 241 MILLION OF REVENUE REFUNDING BONDS PRICES OF CURRENTCOUPON MORTGAGES DRIFTED MODESTLY LOWER IN A LISTLESS SESSION AGAIN UNDERPERFORMING TREASURYS MORTGAGES HAVE UNDERPERFORMED TREASURYS FOR NEARLY A WEEK AS BUYERS HAVE CLOSED THEIR BOOKS FOR ALL BUT MINOR PORTFOLIO ADJUSTMENTS THE LACK OF BUYERS COUPLED WITH THE SALE OF FRESH SUPPLY INTO THE MARKET BY MORTGAGE BANKERS HAS HELPED TO STEADILY WIDEN YIELD SPREADS BETWEEN MORTGAGES AND TREASURYS SINCE THE MONDAY BEFORE CHRISTMAS WHILE SOME DEALERS BELIEVE THIS WIDENING RESULTS FROM THE MARKET'S CONTINUED QUEASINESS OVER PREPAYMENTS OTHERS BELIEVE MORTGAGES WILL QUICKLY SNAP BACK INTO SHAPE IN THE NEW YEAR 9312280016 931228 INDUSTRY FOCUS ATTACKS ON VISITORS SPUR DOWNTURN IN FLORIDA TOURISM BUSY SEASON IS QUIET AS FOREIGN TRAVELERS TURN TO OTHER DESTINATIONS BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL A YEARLONG SERIES OF HIGHLY PUBLICIZED ATTACKS ON VISITORS TO FLORIDA IS BEGINNING TO TAKE ITS TOLL ON THE STATE'S 31 BILLION TOURISM INDUSTRY AS FLORIDA'S BUSIEST SEASON BEGINS SOME TRAVEL COMPANIES ARE REPORTING A DRAMATIC FALLOFF IN INTERNATIONAL BOOKINGS HOTELS THAT ARE NORMALLY FULL HAVE ROOMS FOR THE ASKING AND ECONOMISTS RECENTLY CUT THEIR 1993 ESTIMATES FOR GROWTH IN TOURISM TO 19 FROM 41 THE PICTURE ACCORDING TO STATE OFFICIALS IS BRIGHTENED SOMEWHAT BY THE NUMBER OF DOMESTIC TRAVELERS WHICH REMAINS STRONG AS DOES THE NUMBER OF TOURISTS FROM SOUTH AMERICA BUT THE MURDERS AND SUBSEQUENT HEADLINES WORLDWIDE OF NINE FOREIGN TOURISTS AND ONE AMERICAN SINCE OCTOBER 1992 ARE CLEARLY PROMPTING SOME VACATIONERS TO BYPASS FLORIDA WE'D BE FOOLISH TO SAY THAT CRIME ISN'T AFFECTING US SAID GARY STOGNER A SPOKESMAN FOR THE STATE DIVISION OF TOURISM COMPANIES CATERING TO FOREIGNERS PARTICULARLY BRITISH AND GERMAN TOURISTS SAY BOOKINGS HAVE FALLEN BY AS MUCH AS 80 THIS SEASON WINTER TRAVEL TO FLORIDA FROM EUROPE COULD DECREASE BY AS MUCH AS 20 ACCORDING TO JIM CAMMISA PUBLISHER OF TRAVEL INDUSTRY INDICATORS A TRADE PUBLICATION THE MEDIA HYPE HAS RUINED FLORIDA AS A DESTINATION SAID ANGELA SOTO GUEST SERVICE COORDINATOR FOR MIAMIBASED SUNBEACH TRAVEL INC WHICH SELLS TOUR PACKAGES TO EUROPEANS AT SUNBEACH DECEMBER BOOKINGS FOR FLORIDA HAVE PLUMMETED TO ABOUT 300 THIS YEAR FROM 2579 IN 1992 AS A RESULT SUNBEACH HAS CUT ITS EMPLOYEE ROLLS TO SEVEN FROM 16 A YEAR AGO SIMILAR STORIES ABOUND AT THE BEACH HARBOR HOTEL ON MIAMI BEACH MOST OF THE 235 ROOMS WILL BE EMPTY BETWEEN CHRISTMAS AND NEW YEAR'S DAY LAST YEAR AT THAT TIME EVERY ROOM WAS OCCUPIED ACCORDING TO THE HOTEL'S GENERAL MANAGER AT FLORIDA NETWORK TOURS A FIRM SERVING PRIMARILY EUROPEANS GERMAN BUSINESS IS DOWN 80 SWISS BUSINESS IS DOWN 50 AND DUTCH BUSINESS HAS FALLEN NEARLY 40 SAID SUELY AUERBACH PRESIDENT SOME TOUR OPERATORS ARE ADJUSTING TO THE DOWNTURN BY OFFERING TRAVEL PACKAGES TO OTHER DESTINATIONS SUCH AS THE CARIBBEAN AND CALIFORNIA FLORIDA NETWORK TOURS FOR INSTANCE HAS PROMOTED NEW TRIPS TO THE CARIBBEAN AND SEEN GERMAN BOOKINGS TO THE ISLANDS GROW THIS YEAR BY 60 STATE TOURISM OFFICIALS ARE QUICK TO POINT OUT THAT FOREIGN TRAVELERS MADE UP ONLY 16 OF FLORIDA'S 40 MILLION VISITORS LAST YEAR BUT THEY ACKNOWLEDGE THAT INTERNATIONAL VISITORS REPRESENT THE FASTESTGROWING AND BIGGESTSPENDING SEGMENT OF THE STATE'S TOURISTS IN 1987 ONLY 292000 BRITISH TOURISTS VACATIONED IN FLORIDA ACCORDING TO THE US DEPARTMENT OF COMMERCE LAST YEAR THAT NUMBER HAD JUMPED TO MORE THAN ONE MILLION IN MIAMI FOREIGN VISITORS ACCOUNT FOR ABOUT 60 OF ALL TOURISTS UP FROM 35 IN 1989 TOURISM OFFICIALS FEAR THE GROWTH IN INTERNATIONAL VISITATION MAY BE STYMIED FOR NOW BUT THEY THINK DOMESTIC TRAVEL IS HOLDING ITS OWN FOR INSTANCE AT THE FONTAINEBLEAU HILTON RESORT & SPA IN MIAMI BEACH WHICH SERVES PRIMARILY AMERICANS ADVANCE BOOKINGS FOR THE FIRST QUARTER OF 1994 ARE ROUGHLY MATCHING THOSE OF 1993 ACCORDING TO A HOTEL SPOKESWOMAN THE BIG DROP THAT PEOPLE FEARED DUE TO THE NEGATIVE PUBLICITY OVER CRIME HASN'T MATERIALIZED SAID JOHN E EVANS PRESIDENT OF THE FLORIDA TOURISM ASSOCIATION NOBODY IS DANCING IN THE AISLES BUT THERE'S NOT A LOT OF CRYING EITHER DOMESTIC TOURISM HASN'T COLLAPSED STATE OFFICIALS SAY BECAUSE AMERICANS SEE CRIME AS A NATIONAL PROBLEM MOREOVER FLORIDA'S STATE AND LOCAL GOVERNMENTS HAVE MOUNTED A MUCHPUBLICIZED ANTICRIME CAMPAIGN HIGHWAY REST STOPS ARE NOW UNDER 24HOUR SURVEILLANCE FOR INSTANCE AND THE IDENTIFYING MARKS ON RENTAL CARS HAVE BEEN REMOVED TO MAKE THE VEHICLES LESS CONSPICUOUS OFFICIAL FLORIDA TOURISM STATISTICS WHICH ARE AVAILABLE ONLY THROUGH SEPTEMBER SHOW MIXED RESULTS FOR 1993 FOR THE NINE MONTHS ENDED SEPT 30 THE NUMBER OF FLORIDA TOURISTS ACTUALLY CLIMBED 25 TO 317 MILLION FROM 309 MILLION IN 1992 ACCORDING TO THE FLORIDA DEPARTMENT OF COMMERCE IN THE US DURING 1993 DOMESTIC TOURISM GREW BY 3 AND INTERNATIONAL TOURISM ROSE BY 6 ACCORDING TO MR CAMMISA IN THE THIRDQUARTER HOWEVER FLORIDA VISITATION FELL 32 THE NUMBER OF PASSENGERS TAKING CRUISES OUT OF MIAMI DROPPED DURING EACH MONTH OF THE THIRDQUARTER INCLUDING A DECREASE OF 87 IN SEPTEMBER AIR TRAFFIC TO THE STATE DROPPED 13 DURING THE QUARTER THE CARRENTAL BUSINESS FELL 15 IN SEPTEMBER STATE TOURISM OFFICIALS CAUTION THAT A NUMBER OF SPECIAL CIRCUMSTANCES DROVE 1992 TRAVEL FIGURES UNUSUALLY HIGH SETTING A TOUGH STANDARD FOR COMPARISON AIRLINE FARE WARS ENTICED THOUSANDS OF TRAVELERS WITH LOW RATES AND HURRICANE ANDREW BROUGHT A SLEW OF CLEANUP OFFICIALS SUCH AS INSURANCE ADJUSTERS AND CONSTRUCTION WORKERS TO THE STATE THAT YEAR MOREOVER A SLUGGISH ECONOMY THIS YEAR IN THE US CANADA EUROPE AND ELSEWHERE HAS KEPT TOURISM FROM BOOMING OFFICIALS SAID STATE OFFICIALS AND INDUSTRY OBSERVERS THINK THE FULL EFFECT OF THE PUBLICITY OVER THE TOURIST MURDERS ISN'T CONTAINED IN THE SEPTEMBER NUMBERS IT WAS IN SEPTEMBER THAT TWO KILLINGS OCCURRED IN A SINGLE WEEK SPARKING THE YEAR'S MOST INTENSE MEDIA COVERAGE OF FLORIDA'S CRIME PROBLEM OFFICIALS FEAR THAT WHEN TOURISTS THIS FALL PLANNED VACATIONS FOR THE WINTER THE NEGATIVE MEDIA COVERAGE MAY HAVE STEERED SOME OF THEM AWAY FROM FLORIDA FOR THAT REASON FLORIDA TOURISM OFFICIALS AREN'T MAKING ANY PROJECTIONS FOR THE COMING MONTHS EVERYBODY'S GOT THEIR FINGERS CROSSED THAT THE WORST IS BEHIND US SAID CHARLES DUSSEAU THE STATE SECRETARY OF COMMERCE BUT NO ONE WANTS TO MAKE THE PREDICTION THAT THAT'S THE CASE BETWEEN 1983 AND 1992 THE NUMBER OF INTERNATIONAL VISITORS TO FLORIDA INCREASED ALMOST 11 A YEAR THE ANNUAL RATE OF GROWTH FOR SOME SPECIFIC REGIONS AND COUNTRIES 9312280015 931228 LAW LEGAL BEAT HMO IS HELD LIABLE FOR REFUSING TO COVER BREAST CANCER TREATMENT BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL A JURY HAS AWARDED MORE THAN 12 MILLION TO THE ESTATE OF A WOMAN WHOSE HEALTHMAINTENANCE ORGANIZATION REFUSED TO PAY FOR A BONEMARROW TRANSPLANT TO TREAT HER BREAST CANCER THE VERDICT AGAINST THE HEALTH NET HMO IS LIKELY 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 ONE LAWYER SUGGESTED THAT THE CASE BELIEVED TO BE THE FIRST INVOLVING THE ISSUE TO BE TRIED BY A JURY MAY BE A HARBINGER OF POTENTIAL LEGAL PROBLEMS WITH MANAGEDCARE EFFORTS TO LIMIT TREATMENTS BONEMARROW TRANSPLANTS ROUTINELY USED TO TREAT DISEASES SUCH AS LEUKEMIA INCREASINGLY HAVE BEEN USED FOR BREAST CANCER AS WELL MANY INSURERS AND HMOS ARGUE THAT THE TREATMENT IS EXPERIMENTAL AND REFUSE TO COVER IT BUT WOMEN'S ADVOCACY GROUPS COUNTER THAT INSURERS SIMPLY DON'T WANT TO PAY FOR THE TREATMENTS A GROWING NUMBER OF WOMEN HAVE GONE TO COURT TO ASK JUDGES TO INTERVENE IN THEIR COVERAGE DISPUTES ON AN EMERGENCY BASIS BUT MANY OF THESE MOTIONS HAVE BEEN SETTLED OUT OF COURT THE CASE DECIDED LAST WEEK IN RIVERSIDE CALIF IS SIGNIFICANT BECAUSE IT WAS TRIED BEFORE A JURY THE SUPERIOR COURT JURY FOUND THAT HEALTH NET A WOODLAND HILLS CALIF UNIT OF HN MANAGEMENT HOLDINGS HAD ACTED IN BAD FAITH BREACHED ITS CONTRACT AND RECKLESSLY INFLICTED EMOTIONAL DISTRESS THE PLAINTIFF NELENE FOX DIED IN APRIL AND THE CASE WAS CONTINUED BY HER HUSBAND AND ESTATE MARK HIEPER THE OXNARD CALIF ATTORNEY FOR THE FOX FAMILY AND NELENE FOX'S BROTHER SAYS THE DECISION IS A REAL INDICTMENT ON MANAGING CARE DURING THE ALMOST MONTHLONG TRIAL HE SAYS HE PRESENTED EVIDENCE THAT THE HEALTH NET EXECUTIVE WHO MADE THE DECISION NOT TO COVER MS FOX'S TREATMENT WAS COMPENSATED PARTLY ON THE BASIS OF HOW MUCH MONEY HE SAVED THE COMPANY YOU PUT DOCTORS IN POSITIONS OF CONFLICTS AND YOU REWARD THEM FOR NOT TREATING PATIENTS MR HIEPER CLAIMED AFTER HEALTH NET DENIED HER COVERAGE MS FOX AND HER FAMILY RAISED MONEY FOR THE TREATMENT THROUGH BAKE SALES AND OTHER MEANS THE JURY ALSO ORDERED HEALTH NET TO REIMBURSE MS FOX'S HUSBAND 212000 FOR THE COST OF HER TREATMENT RITA DUARTE AN EXECUTIVE VICE PRESIDENT OF HEALTH NET SAID SHE COULD NOT COMMENT ON THE CASE BECAUSE IT IS STILL IN LITIGATION THE JURY TODAY IS EXPECTED TO CONSIDER HOW MUCH IF ANYTHING IT WILL AWARD IN PUNITIVE DAMAGES WHICH ARE DESIGNED TO PUNISH AND DETER EGREGIOUS WRONGDOING L SUSAN SLAVIN A HEMPSTEAD NY ATTORNEY WHO FOUNDED THE BREAST CANCER LEGAL ADVOCACY PROJECT WHICH IS AFFILIATED WITH THE AMERICAN BAR ASSOCIATION HERALDED THE JURY VERDICT HOPEFULLY IT WILL SEND A CLEAR SIGNAL TO THE INSURANCE INDUSTRY NATIONWIDE TO REEVALUATE THEIR POSITION SHE SAID 9312280014 931228 US SEEKS TALKS WITH TOKYO ON CHIP ACCORD FOREIGN SEMICONDUCTORS ARE 181 OF MARKET LESS THAN AGREED LEVEL BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION CALLED FOR EMERGENCY TALKS ON SEMICONDUCTOR TRADE WITH JAPAN TURNING UP THE HEAT AS NEW FIGURES SHOWED THE FOREIGN SHARE OF THE JAPANESE SEMICONDUCTOR MARKET FELL TO 181 IN THE THIRD QUARTER ALTHOUGH EXPRESSING DISAPPOINTMENT ABOUT THE RESULTS US INDUSTRY OFFICIALS REINED IN THEIR CRITICISM SAYING THEY WILL WAIT TO SEE WHAT THE TALKS PRODUCE STILL A US OFFICIAL CHARACTERIZED THE SITUATION AS GETTING WORSE A 1986 AGREEMENT SETS A 20 BENCHMARK FOR FOREIGN SEMICONDUCTORS' SHARE OF THE JAPANESE MARKET US TRADE REPRESENTATIVE MICKEY KANTOR SAID THE LATEST RESULTS RAISED SERIOUS CONCERNS AND SAID THE EMERGENCY TALKS IN MIDJANUARY WILL TRY TO FIGURE OUT WAYS TO BOOST DRAMATICALLY FOREIGN ACCESS TO JAPAN'S SEMICONDUCTOR MARKET JAPANESE INDUSTRY OFFICIALS REJECTED THE US CRITICISM ALTHOUGH THEY ADMITTED THE DROP IN FOREIGN MARKET SHARE WAS SOMETHING OF A PUZZLE THE MARKET SHARE FIGURES DO NOT FULLY REFLECT THE EFFORTS OF JAPANESE USERS SAID HIDEHIKO YOSHIDA SENIOR EXECUTIVE VICE PRESIDENT OF TOSHIBA CORP AND CHAIRMAN OF A JAPANESE INDUSTRY GROUP THAT PROMOTES PURCHASES OF FOREIGN CHIPS FOR INSTANCE HE NOTED SALES OF FOREIGN SEMICONDUCTORS IN JAPAN HAVE CONTINUED TO GROW IN ABSOLUTE TERMS RISING 25 IN THE APRILTOSEPTEMBER PERIOD THIS YEAR OVER THE SAME PERIOD A YEAR EARLIER MR YOSHIDA ALSO ARGUED THAT THE NUMBER OF DESIGNINS CASES WHERE FOREIGN FIRMS HAVE DESIGNED CHIPS ESPECIALLY FOR JAPANESE PRODUCTS ALSO HAVE CONTINUED TO RISE ENSURING THAT FOREIGN ACCESS TO THE JAPANESE MARKET WILL CONTINUE TO GROW THIS IS THE FIRST TIME THE US HAS CALLED FOR THE SOCALLED EMERGENCY TALKS UNDER A 1991 ARRANGEMENT THE TWO SIDES AGREED TO USE IF TERMS OF THE SEMICONDUCTOR ACCORD WEREN'T BEING REACHED BUT BY OPTING FOR THE EMERGENCY TALKS CLINTON ADMINISTRATION OFFICIALS HELD OFF ON A MORE AGGRESSIVE CHOICE THEY COULD HAVE PICKED SANCTIONS SUCH A MOVE WOULD HAVE COME AT A DIFFICULT MOMENT POLITICALLY FOR ONE THING JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA IS UNDER PRESSURE TRYING TO KEEP A DISPARATE POLITICAL COALITION TOGETHER US OFFICIALS ACKNOWLEDGE THAT THIS FACTORED INTO THEIR DECISION MAKING WHAT'S MORE THE US AND JAPAN ARE IN THE MIDST OF SOCALLED FRAMEWORK NEGOTIATIONS AIMED AT EASING TRADE TENSIONS IN A NUMBER OF INDUSTRIES INCLUDING SEMICONDUCTORS US OFFICIALS KNOW THAT BY PUSHING HARD ON SEMICONDUCTORS THEY COULD LOSE GROUND IN OTHER AREAS WHEN US AND JAPANESE NEGOTIATIORS RESUME THOSE FRAMEWORK TALKS SOMETIME IN MIDJANUARY THE THIRDQUARTER RESULTS RELEASED BY THE US AND JAPANESE GOVERNMENTS REPRESENT THE THIRD CONSECUTIVE QUARTER IN WHICH JAPANESE PURCHASES HAVE FALLEN BELOW THE 20 BENCHMARK US OFFICIALS ALSO SAID THAT JAPAN HASN'T STEADILY AND GRADUALLY INCREASED ITS PURCHASES OF FOREIGN SEMICONDUCTORS ANOTHER STIPULATION OF THE AGREEMENT JAPANESE OFFICIALS ARE ARGUING THE SEMICONDUCTOR ACCORD DOESN'T STIPULATE THAT IMPROVED ACCESS BE MEASURED ONLY BY MARKET SHARE AND THAT INCREASED SALES FIGURES OVER RECENT QUARTERS ALSO CONSTITUTE BETTER ACCESS THEY ALSO CONTENDED THE 20 TARGET APPLIED ONLY UNTIL 1992 WHAT'S MORE THEY SAID AN EARLY JAPANESE GOVERNMENT ANALYSIS OF THE THIRD QUARTER SHOWS THAT IMPORTS OF US SEMICONDUCTORS HAVEN'T KEPT PACE WITH INCREASED JAPANESE DEMAND STAN ANDERSON WASHINGTON COUNSEL FOR THE ELECTRONICS INDUSTRY ASSOCIATION OF JAPAN SAID FOREIGN SALES FIGURES FOR THE THIRD QUARTER TOPPED 1 BILLION THE HIGHEST RESULT EVER AND AN INCREASE OVER THE SECOND QUARTER'S 970 MILLION THE BENCHMARK HAS BEEN REACHED IN ONE QUARTER AFTER A DISMAL THIRD QUARTER 1992 RESULT OF 159 FOREIGNERS' MARKET SHARE SHOT UP TO 202 IN THE FOURTH QUARTER BUT IT FELL TO 196 IN THE FIRST QUARTER OF 1993 AND TO 192 IN THE SECOND QUARTER THE LATEST 181 RESULT CONTINUED THE TREND JAPANESE GOVERNMENT OFFICIALS HOWEVER SAY SUCH US PRESSURE MAY BACKFIRE OFFICIALS AT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY FOR INSTANCE SAY THEY FEEL BADLY BURNED BY THE WAY THE SEMICONDUCTOR AGREEMENT HAS WORKED OUT ALTHOUGH THE AGREEMENT'S TEXT EXPLICITLY STATES THAT THE 20 TARGET WAS AN EXPECTATION OF US INDUSTRY AND NOT A FLOOR OR CEILING US OFFICIALS HAVE TERMED ANY FAILURE TO MAINTAIN FOREIGN MARKET SHARE AT THAT LEVEL A COMMITMENT NOT KEPT BY THE JAPANESE THE MORE THE US SIDE OVEREMPHASIZES THIS DECLINE IN THE MARKET SHARE THE MORE WE ARE CONVINCED THAT WE WILL NEVER AGAIN NEGOTIATE A SEMICONDUCTORTYPE ARRANGEMENT A MITI OFFICIAL SAID IN THE CURRENT FRAMEWORK TRADE TALKS THE US IS SEEKING OBJECTIVE CRITERIA TO MEASURE PROGRESS IN MARKET ACCESS BUT THE JAPANESE HAVE RESISTED ANY NUMBERS THAT MIGHT BE USED TO SET FUTURE TARGETS THE MORE THEY TALK ABOUT THE SEMICONDUCTOR AGREEMENT THE MORE WE THINK THERE'S A RISK THAT FUTURE NUMBERS WILL TAKE ON A LIFE OF THEIR OWN THE MITI OFFICIAL SAID US SEMICONDUCTOR EXECUTIVES EXPRESSED SUPPORT FOR MR KANTOR'S DECISION TO CALL FOR EMERGENCY TALKS WITH THE JAPANESE BUT CAUTIONED THAT THE INDUSTRY ISN'T LIKELY TO MAKE ANY SPECIFIC DEMANDS BEFORE MIDJANUARY UNTIL THEN OUR INDUSTRY WILL WORK VERY CLOSELY WITH THE ADMINISTRATION TO PROVIDE ALL THE FACTS AND ARGUMENTS NEEDED TO MAKE THE CASE FOR LARGER CHIP IMPORTS BY JAPAN SAID MICHAEL MAIBACH DIRECTOR OF GOVERNMENT AFFAIRS FOR INTEL CORP THE LARGEST USBASED CHIP MAKER INTEL AND MOTOROLA INC HAVE BEEN LEADING THE FIGHT FOR GREATER ACCESS TO JAPAN'S SEMICONDUCTOR MARKET MR MAIBACH BLAMED THE DECLINE IN FOREIGN CHIP SALES TO JAPAN ON THE CONTINUED RECESSION BUT ADDED THAT IT APPEARS OUR JAPANESE CUSTOMERS HAVE DECIDED TO SHARE THE PAIN BY HANDING FOREIGN SUPPLIERS AN INORDINATE CUT IN SALES G PASCAL ZACHARY IN SAN FRANCISCO CONTRIBUTED TO THIS ARTICLE 9312280013 931228 FORD IN A BID TO HELP RESCUE MAZDA TO SEND 3 EXECUTIVES TO JAPAN IN 1994 BY WALL STREET JOURNAL STAFF REPORTERS MICHAEL WILLIAMS IN TOKYO AND JOSEPH B WHITE IN DETROIT IN A MOVE SYMBOLIZING THE CHANGING FORTUNES OF AMERICAN AND JAPANESE AUTO MAKERS FORD MOTOR CO WILL SEND THREE SENIOR EXECUTIVES TO JAPAN NEXT YEAR TO HELP RESCUE MAZDA MOTOR CORP FORD'S MOVE TO TIGHTEN CONTROL OVER MAZDA MANAGEMENT AND PRODUCT STRATEGY COMES AS MAZDA BRACES FOR A PROJECTED PARENTCOMPANY PRETAX LOSS OF 32 BILLION YEN 290 MILLION FOR THE YEAR THAT ENDS MARCH 31 1994 AND IT POINTS TO A FUTURE IN WHICH MAZDA WILL FUNCTION MORE AS FORD'S ASIAN ARM THAN AS A FULLY INDEPENDENT ACTOR IN THE WORLD AUTO INDUSTRY I'M HOPEFUL IT DOES PERMIT US TO MOVE OUR STRATEGIC DIRECTIONS CLOSER TOGETHER SAID W WAYNE BOOKER FORD'S EXECUTIVE VICE PRESIDENT FOR INTERNATIONAL OPERATIONS MAZDA ALREADY 25 OWNED BY FORD THUS BECOMES THE BIGGEST AMONG JAPAN'S AUTO MAKERS THAT HAVE BEEN FORCED TO RELINQUISH SOME MEASURE OF INDEPENDENCE AMID JAPAN'S WORST POSTWORLD WAR II RECESSION AND A CONCURRENT REBOUND BY DETROIT'S BIG THREE THE ANNOUNCEMENT PACKS AN EXTRA SYMBOLIC PUNCH COMING ALMOST EXACTLY TWO YEARS AFTER THE HEADS OF DETROIT'S BIG THREE AUTO MAKERS ENDURED THE HUMILIATION OF GOING HATS IN HAND TO TOKYO TO PLEAD FOR RELIEF FROM JAPANESE COMPETITION THAT HAD SUNK THEIR COMPANIES DEEP IN THE RED ANALYSTS CALLED THE MOVE A WELCOME SYMBOL OF FORD'S SUPPORT FOR MAZDA BUT ADDED THAT IT DOES NOTHING TO SOLVE MAZDA'S UNDERLYING PROBLEMS SUCH AS EXCESS CAPACITY AND EMPLOYEES THE ANNOUNCEMENT SIGNALS THAT THEIR RELATIONSHIP IS TIGHT SAID CHIKAO MASUZAWA AUTO ANALYST AT SALOMON BROTHERS IN TOKYO BUT IT WILL TAKE A LONG TIME FOR MAZDA TO SEE A RECOVERY IN PROFIT INVESTORS IN TOKYO HAD DRIVEN UP MAZDA SHARES 14 YEN TO 398 YEN 360 MONDAY ON EXPECTATIONS THAT THE COMPANY WOULD OUTLINE A CONCRETE PLAN OF ASSISTANCE FROM FORD BUT AT A NEWS CONFERENCE AFTER TRADING CLOSED MAZDA PRESIDENT YOSHIHIRO WADA DASHED THOSE HOPES SAYING FORD WON'T HELP MAZDA BY TAKING A BIGGER EQUITY STAKE OR BUYING MAZDA PRODUCTION FACILITIES MOVES THAT HAVE BEEN FREQUENTLY RUMORED IN JAPAN IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FORD SHARES CLOSED YESTERDAY AT 6450 OFF 375 CENTS FORD AND MAZDA'S EXPANDED TIES GROW FROM ONE OF THE CLOSEST ALLIANCES IN THE AUTO INDUSTRY THE TWO COMPANIES HAVE JOINTLY DESIGNED SEVERAL VEHICLES MAZDA SELLS FORD TRUCKS IN THE US AND THE COMPANIES JOINTLY OWN AN AUTOASSEMBLY FACTORY IN FLAT ROCK MICH ORIGINALLY BUILT BY MAZDA BUT THE PLAN APPROVED BY MAZDA'S DIRECTORS ON CHRISTMAS DAY GOES MUCH FURTHER FOR THE FIRST TIME FORD WILL HAVE ONE OF ITS EXECUTIVES INSTALLED AS ONE OF THREE MAZDA EXECUTIVE VICE PRESIDENTS SERVING DIRECTLY UNDER MR WADA TWO OTHER FORD EXECUTIVES WILL TAKE MANAGING DIRECTOR POSITIONS WITH INFLUENCE OVER MAZDA'S CORPORATE BUSINESS PLANNING AND PRODUCT PLANNING THE NUMBER OF FORDAPPOINTED REPRESENTATIVES ON MAZDA'S 42MEMBER BOARD WILL GROW TO SEVEN FROM FOUR MAZDA'S MR WADA TOLD A NEWS CONFERENCE MONDAY THAT MAZDA AND FORD WILL RETAIN THEIR RESPECTIVE IDENTITIES FORD'S MR BOOKER SEPARATELY STRESSED THAT MAZDA WILL RETAIN SEPARATE SALES AND MARKETING OPERATIONS IN THE US BUT MR BOOKER SAID FORD WILL USE ITS EXPANDED MANAGEMENT PRESENCE TO STEER MAZDA'S FUTURE PRODUCT PLANS AND MANUFACTURING STRATEGY INTO MUCH CLOSER HARMONY WITH ITS OWN AS THE COMPETITIVE SITUATION HAS HEATED UP THE TYPE OF STRUCTURE WE HAD IN PLACE WASN'T WORKING AS WELL AS WE WANTED HE SAID THINGS WERE MOVING MORE RAPIDLY THAN A QUARTERLY MEETING WOULD PERMIT US TO CONTROL IN ADDITION TO EXPANDED COOPERATION ON PRODUCT DEVELOPMENT HE SAID FORD ALSO WANTS TO DISCUSS WITH MAZDA JOINT EFFORTS THAT WOULD HELP FORD BREAK INTO FASTGROWING ASIAN ECONOMIES WHOEVER FORD SENDS WILL HAVE AS A FIRST PRIORITY HELPING MAZDA TO MANAGE A FINANCIAL TURNAROUND UNDER HARSH MARKET CONDITIONS MAZDA LIKE OTHER JAPANESE AUTO MAKERS ENJOYED ALMOST UNINTERRUPTED SALES GROWTH FOR MORE THAN A DECADE AND POURED MONEY INTO HEADY EXPANSION PLANS NOW THE JAPANESE MARKET IS STUCK IN LOW GEAR AND THE RISING YEN AND A RESURGENCE BY DETROIT'S BIG THREE HAVE CHOKED OFF SALES GROWTH IN THE US MAZDA LAST YEAR CANCELED PLANS TO LAUNCH A NEW LUXURY DIVISION IN THE US BUT NOT BEFORE BUILDING A JAPANESE FACTORY THAT NOW STANDS HALF EMPTY IN JULY 1992 FORD PAID MAZDA 380 MILLION TO TAKE 50 CONTROL OF THE FLAT ROCK FACTORY THE FACT THAT FORD DOESN'T PLAN TO INCREASE ITS STAKE IN MAZDA OR INJECT MORE CAPITAL INTO THE COMPANY BY PURCHASING A STAKE IN ANOTHER MAZDA PLANT LEAVES OPEN THE POSSIBILITY THAT FORD COULD HIRE MAZDA TO ENGINEER A SUCCESSOR TO THE CURRENT FORD ESCORT SUBCOMPACT A JOB THAT WOULD PRODUCE REVENUE NEAR TERM AND A HIGHVOLUME PRODUCT FORD AND MAZDA COULD SHARE THE ANNOUNCEMENT CAME AFTER MONTHS IN WHICH MAZDA RECEIVED NO HIGHPROFILE DISPLAYS OF SUPPORT FROM EITHER FORD OR ITS MAIN BANKER SUMITOMO BANK LTD THE TWO COMPANIES THAT RESCUED THE JAPANESE AUTO MAKER FROM A FINANCIAL CRISIS IN THE 1970S IN MARCH FORD AND MAZDA SCRAPPED PLANS TO MAKE CARS TOGETHER IN EUROPE EFFECTIVELY SHUTTING MAZDA OUT OF MEANINGFUL PARTICIPATION IN THE EUROPEAN MARKET FORD YESTERDAY DIDN'T NAME THE EXECUTIVES TO BE ASSIGNED TO MAZDA MR WADA SAID THE EXECUTIVES WILL BE FORMALLY APPOINTED AT MAZDA'S SHAREHOLDERS' MEETING IN JUNE IN THE MEANTIME MR WADA SAID HE WILL TAKE CONTROL OF DOMESTIC MARKETING AND SALES AND FIVE BOARD MEMBERS WILL RETIRE INCLUDING MAZDA'S HEAD PRODUCT PLANNER AND ITS OVERSEAS MARKETING CHIEF MAZDA SAID THE RETIREMENTS WERE UNRELATED TO THE FORD APPOINTMENTS 9312280012 931228 WHO'S NEWS DIED J ROBERT KILLPACK 71 DIRECTOR AND FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NATIONAL CITY CORP SUNDAY IN VERO BEACH FLA OF CANCER 9312280009 931228 WHAT'S NEWS WORLDWIDE NORTH KOREA IS NEARING AN ACCORD WITH THE US ON NUCLEAR INSPECTIONS NEGOTIATORS ARE CLOSE TO AN AGREEMENT THAT WOULD LEAD TO AN INTERNATIONAL INSPECTION OF PYONGYANG'S NUCLEAR SITES AND A ROUND OF MOREGENERAL TALKS BETWEEN THE TWO NATIONS AS EARLY AS FEBRUARY THE GAP BETWEEN THE TWO SIDES IS RAPIDLY NARROWING ON THE MAJOR ISSUES IN THE DISPUTE WITH TECHNICAL DETAILS OF THE INSPECTION BEING WORKED OUT WHILE THE CIA HAS SAID NORTH KOREA MAY HAVE ENOUGH PLUTONIUM FOR ONE OR TWO BOMBS EXPERTS DISAGREE OVER WHETHER THAT NATION HAS ACTUALLY MADE A DELIVERABLE NUCLEAR WEAPON ISRAEL AND THE PLO REOPENED TALKS IN CAIRO AND EXPRESSED HOPE THEY WOULD REACH AN ACCORD ENABLING ISRAEL TO BEGIN WITHDRAWING TROOPS FROM GAZA AND JERICHO SEPARATELY ISRAELI SOLDIERS IN SOUTHERN LEBANON FIRED ON TWO NORWEGIAN UN PEACEKEEPERS AFTER MISTAKING THEM FOR ARAB GUERRILLAS KILLING ONE AND WOUNDING THE OTHER STROBE TALBOTT WILL BE NOMINATED TODAY TO THE NO 2 POSITION AT THE STATE DEPARTMENT IF APPROVED BY THE SENATE TALBOTT WILL SUCCEED CLIFTON WHARTON WHO WAS FORCED OUT OF THE JOB LAST MONTH TALBOTT IS CLINTON'S TOP ADVISER ON RUSSIA AND A FORMER OXFORD UNIVERSITY ROOMMATE OF THE PRESIDENT RUSSIAN POLICE INTERROGATED FOUR KIDNAPPERS AFTER THEIR CAPTURE IN THE MOUNTAINS OF SOUTHERN RUSSIA THE FOUR WERE PICKED UP ON FOOT AFTER ABANDONING THEIR COMMANDEERED HELICOPTER THEIR ARREST ENDED A FOURDAY DRAMA THAT BEGAN WHEN THEY SEIZED A DOZEN SCHOOLCHILDREN AND FLED WITH A 10 MILLION RANSOM MOST OF WHICH WAS RECOVERED ABOUT 200 SLUM DWELLINGS WERE SET AFIRE IN HAITI BY SUPPORTERS OF THE COUNTRY'S MILITARY REGIME WHO WERE RETALIATING FOR SUNDAY'S SLAYING OF A PROMILITARY OFFICIAL HAITIAN RADIO STATIONS REPORTED AT LEAST FOUR CIVILIANS DIED IN THE FIRES IN PORTAUPRINCE'S CITE SOLEIL A SPRAWLING SLUM WHERE MANY BACKERS OF OUSTED PRESIDENT ARISTIDE LIVE BOSNIAN SERB GUNNERS AGAIN DISREGARDED A UN APPEAL FOR A HOLIDAY TRUCE AND INTENSIFIED THEIR SHELLING OF SARAJEVO KILLING AT LEAST SEVEN PEOPLE AND WOUNDING 58 IN THE CAPITAL THE LATEST BOSNIAN CEASEFIRE WAS TO HAVE RUN FROM DEC 23 UNTIL THE RESUMPTION OF PEACE TALKS ON JAN 15 BUT IT WAS IGNORED FROM THE START CHINA DECLARED THAT IT WOULD DISBAND HONG KONG'S LEGISLATURE AND OTHER ELECTED BODIES AFTER IT TAKES OVER THE BRITISH COLONY IN 1997 IN A NEW DISPLAY OF TOUGH RHETORIC CHINA ALSO SAID IT WOULD EXAMINE EXISTING HONG KONG LAWS TO DECIDE WHICH WOULD STAY IN FORCE AFTER 1997 ACCORDING TO THE XINHUA NEWS AGENCY CASTRO WILL LET HIS TEENAGE GRANDDAUGHTER LEAVE CUBA TO JOIN HER DISSIDENT MOTHER IN THE US THE REV JESSE JACKSON SAID IN HAVANA JACKSON SAID THE CUBAN LEADER TOLD HIM THAT HE WOULDN'T BAR THE GIRL FROM LEAVING IF OTHER FAMILY MEMBERS APPROVE THE GIRL'S MOTHER A DAUGHTER OF CASTRO DEFECTED TO THE US LAST WEEK SUSPECTED MUSLIM MILITANTS RENEWED THEIR CAMPAIGN AGAINST TOURISTS IN EGYPT BY HURLING TWO BOMBS AT A TOUR BUS IN CAIRO AND WOUNDING 16 PEOPLE EIGHT OF THOSE INJURED WERE AUSTRIAN TOURISTS AND THE OTHERS WERE EGYPTIAN BYSTANDERS HOURS LATER MILITANTS WERE BLAMED FOR THE SHOOTING DEATHS OF THREE PEOPLE IN A CAIRO JEWELRY SHOP FRENCH AUTHORITIES ADDED A 150MILE STRETCH OF COASTLINE IN NORTHERN BRITTANY TO A SWEEPING SHUTDOWN OF BEACHES THAT ALREADY INCLUDED FRANCE'S ENTIRE ATLANTIC COAST THE EXPANDED PREVENTIVE ACTION WAS TAKEN AS THOUSANDS OF EXPLOSIVE DETONATORS USED IN CONSTRUCTION WORK CONTINUED TO WASH ASHORE AFTER FALLING OFF A FREIGHTER THIS MONTH AN OVERLOADED BUS COLLIDED WITH A CAR IN SOUTHERN BRAZIL AND BOTH VEHICLES PLUNGED DOWN A 300FOOT EMBANKMENT KILLING 41 PEOPLE AND INJURING 84 OFFICIALS SAID THE CRASH OCCURRED OUTSIDE CURITIBA CAPITAL OF THE STATE OF PARANA ON A POORLY PAVED ROAD DUBBED THE HIGHWAY OF DEATH BECAUSE OF ITS HIGH NUMBER OF FATAL CRASHES AN EXPLOSION DAMAGED PART OF A UNHELD PORT AREA IN MOGADISHU AND UN OFFICERS SAID THEY SUSPECTED THE BLAST WAS IN REVENGE FOR THE SHOOTING OF TWO SOMALI MILITIAMEN BY US TROOPS ON SUNDAY A GROUP LED BY CLAN LEADER AIDID BLAMED THE UN FOR THE EXPLOSION CLAIMING A US SHIP FIRED A MISSILE AT THE PORT TO PROVOKE A WAR 9312280008 931228 TOKYO'S TIES TO PYONGYANG'S THREAT BY RICHARD P LAWLESS SEOUL WITH THE RECENT NEWS THAT NORTH KOREA DOES INDEED POSSESS A NUCLEAR BOMB ACCORDING TO THE CIA AND OTHER US INTELLIGENCE SERVICES THE NEED TO DO SOMETHING ABOUT THAT COUNTRY'S NUCLEAR PROGRAM IS MORE PRESSING THAN EVER THE CLINTON ADMINISTRATION HAS RELUCTANTLY CONCLUDED THAT ITS CONCESSIONARY APPROACH IS NOT WORKING IT IS THUS FORCED TO CONSIDER ADOPTING A GET TOUGH STRATEGY THAT WOULD INCLUDE ECONOMIC SANCTIONS UNFORTUNATELY THE PROSPECTS OF SUCCESS ARE NOT GOOD AS FAR AS SANCTIONS ARE CONCERNED THE CLINTON TEAM APPARENTLY BELIEVES THAT CHINA HOLDS THE KEY TO EFFECTIVE SANCTIONS HENCE THE RECENT CONCILIATORY APPROACH TOWARD BEIJING BUT THE ADMINISTRATION IS MISREADING CHINESE ECONOMIC INFLUENCE OVER PYONGYANG IN RECENT YEARS NORTH KOREA'S TRADITIONAL LOAN OR BARTER RELATIONSHIP WITH COMMUNIST REGIMES HAS ALL BUT COLLAPSED THE ECONOMIC RELATIONSHIP BETWEEN CHINA AND NORTH KOREA HAS BEEN PLACED ON A HARDCURRENCY BASIS WITHOUT ITS LIMITED CURRENCY RESERVES NORTH KOREA'S ECONOMY WOULD COLLAPSE NORTH KOREA IS THUS MORE DEPENDENT THAN EVER ON FOREIGN EXCHANGE THESE FUNDS ARE DERIVED ALMOST ENTIRELY FROM ITS WEAPONS SALES TO REGIMES SUCH AS IRAN AND SYRIA AND FROM ITS DEALINGS WITH THE KOREAN COMMUNITY IN JAPAN EVEN IF SANCTIONS COULD SOMEHOW STOP WEAPONS SALES THE ROAD TO INFLUENCE OVER PYONGYANG RUNS NOT THROUGH BEIJING BUT TOKYO IT IS NO SECRET THAT JAPAN'S 750000STRONG KOREAN COMMUNITY PROVIDES A FOREIGNEXCHANGE LIFELINE TO NORTH KOREA LESS APPARENT THOUGH IS THAT THERE IS LITTLE INTEREST IN TOKYO IN CUTTING THAT LIFELINE OR EVEN IN DISCUSSING IT MOREOVER THE VOLUME OF CASH FLOW HAS BEEN SUBSTANTIALLY UNDERESTIMATED DUE TO BLACK MARKETS IN CURRENCY AND THE ILLICIT CHANNELS BY WHICH NORTH KOREA RECEIVES THESE FUNDS ARE FIRMLY GUARDED EVEN IF TOKYO WERE INCLINED TO INTERDICT ITS EFFECTIVENESS WOULD BE LIMITED NORTH KOREA HAS LONG PORTRAYED ITSELF AS THE CHAMPION OF ALL KOREANS IN JAPAN WITH SOME REASON CULTURALLY DISPARAGED AND OPENLY DISCRIMINATED AGAINST KOREANJAPANESE HAVE BEEN RECEPTIVE TO NORTH KOREA'S EFFORTS ON THEIR BEHALF THE KOREAN RESIDENTS' ASSOCIATION IN JAPAN THE CHOSEN SOREN IS WIDELY BELIEVED TO BE CONTROLLED BY THE NORTH KOREAN GOVERNMENT THAT CONTROL HAS ITS ORIGINS IN THE TIES OF SEVERAL GENERATIONS OF KOREANJAPANESE TO THEIR ANCESTRAL HOMELAND THESE TIES WERE EXPLOITED BY KIM IL SUNG IN THE 1960S WHEN HE ENTICED TENS OF THOUSANDS OF KOREANJAPANESE TO RETURN HOME AND BECOME PART OF THE DREAM SOCIETY HE WAS BUILDING MANY OF THOSE RETURNEES NOW LIVE A HANDTOMOUTH EXISTENCE IN THE NORTH KOREAN COUNTRYSIDE AND HAVE BECOME A HOSTAGE BASE FOR THE EXTORTION OF HARD CURRENCY AND HIGHVALUE GOODS FROM THE KOREAN COMMUNITY IN JAPAN THAT COMMUNITY DRAWS ITS WEALTH FROM A VARIETY OF ACTIVITIES ON THE LOWER RUNGS OF THE JAPANESE ECONOMIC LADDER IN MANY LARGE URBAN AREAS FOR EXAMPLE KOREANJAPANESE CONTROL ENTERTAINMENT AND AFFILIATED REALESTATE INDUSTRIES THE KOREANCONTROLLED PACHINKO GAME INDUSTRY ALONE HAS ANNUAL REVENUES APPROACHING 300 BILLION ABOUT 1 BILLION OF WHICH FINDS ITS WAY INTO THE NORTH KOREAN TREASURY AFTER ILLICITLY AVOIDING JAPANESE TAXES IN RECENT MONTHS PYONGYANG HAS TAKEN STEPS TO HARDEN THIS FUNDING SOURCE AGAINST THE SANCTIONS WEAPON BY ESTABLISHING CONTACTS OUTSIDE CHOSEN SOREN CHANNELS THESE CONTACTS INCLUDE NORTH KOREANS DISPATCHED TO JAPAN UNDER REAL OR ASSUMED IDENTITIES WHO INTERACT WITH YAKUZA JAPANESE MAFIA ORGANIZATIONS ENTRENCHED IN THE ECONOMY THE SITUATION IS ACUTE IN THE GREATER OSAKA OR KANSAI REGION OF JAPAN INDEED GOVERNMENT OFFICIALS PRIVATELY ALLUDE TO THE NORTH KOREAN FUNDING ISSUE AS THE KANSAI PROBLEM THE ABILITY OF THE JAPANESE GOVERNMENT TO DO ANYTHING ABOUT THE KANSAI PROBLEM IS LIMITED A DIRTY LITTLE SECRET IN JAPANESE POLITICS IS THAT A SUBSTANTIAL PORTION OF KOREANGENERATED CAPITAL HAS BEEN USED TO SUPPORT THE ESTABLISHED NATIONAL POLITICAL STRUCTURE INCLUDING THE ACTIVITIES OF THE LEADING PARTIES THE JAPAN SOCIALIST PARTY NOW THE LARGEST PARTY IN PRIME MINISTER MORIHIRO HOSOKAWA'S GOVERNING COALITION HAS LONG CHAMPIONED A POLITICAL DIALOGUE WITH NORTH KOREA AND SERVED AS A SEMIOFFICIAL BROKER BETWEEN THE PREVIOUS LIBERAL DEMOCRATIC PARTY GOVERNMENTS AND PYONGYANG PRIME MINISTER HOSOKAWA IS THUS CAUGHT IN A DILEMMA WHILE HIS ELECTION WAS A REFERENDUM FOR REFORM OF JAPANESE POLITICS HIS FRAGILE COALITION IS BUILT AROUND A PARTY THAT DRAWS ITS TRADITIONAL STRENGTH IN PART FROM CLOSE ECONOMIC AND POLITICAL IDENTIFICATION WITH THE KOREANJAPANESE COMMUNITY THERE IS ANOTHER FACTOR THAT ARGUES AGAINST OVERT JAPANESE PRESSURE ON NORTH KOREA MANY SEE THE HARDCURRENCY CHANNEL TO PYONGYANG AS AN INSURANCE POLICY AGAINST NORTH KOREAN HOSTILITY THE REALPOLITIK LOGIC IS THAT NORTH KOREA WOULD BE UNWILLING TO KILL THE GOOSE THAT LAYS ITS GOLDEN EGGS NOT SURPRISINGLY THERE IS CONSIDERABLE PRESSURE WITHIN JAPAN TO PLAY DOWN THE SERIOUSNESS OF THE NORTH KOREAN THREAT DISCUSSION OF THE TOPIC WITH MOST JAPANESE EVOKES OBVIOUS DISCOMFORT AND A DESIRE TO AVOID THE ISSUE ALTOGETHER THE GOVERNMENT IS THUS UNLIKELY TO SUPPORT ANY INTERNATIONAL POLICY THAT WOULD FORCE IT TO ACKNOWLEDGE THE HARDCURRENCY FLOWS AGAINST WHICH SANCTIONS WOULD BE TARGETED THE CLINTON ADMINISTRATION MUST RECOGNIZE THE POSITION IN WHICH SUCH A POLICY WOULD PLACE ITS MOST IMPORTANT ASIAN ALLY THE HARD REALITY IS THAT THE SANCTIONS WILL BE INEFFECTIVE WITHOUT AGGRESSIVE JAPANESE SUPPORT BUT SUCH SUPPORT WOULD THREATEN THE GOVERNMENT IN TOKYO AT LEAST AS MUCH AS THAT IN PYONGYANG MR LAWLESS IS PRESIDENT OF USASIA COMMERCIAL DEVELOPMENT CORP BASED IN WASHINGTON 9312280006 931228 LEISURE & ARTS TOP 10 SINGLES / ALBUMS DATA SYSTEMS AND SOUNDSCAN INC AND BASED ON A NATIONAL SAMPLE OF RETAIL REPORTS AND RADIO PLAY LISTS 9312280004 931228 REVIEW & OUTLOOK EDITORIAL ON ETHICS WHITEWATER A PRIMER AT HOLIDAY GATHERINGS ACROSS THE LAND HEADS ARE SHAKING WITH WORRY OVER OUR PRESIDENT AMID THE LIKES OF VINCENT FOSTER'S DEATH AND ARKANSAS STATE TROOPERS' ALLEGATIONS OF WHAT AMOUNTS TO SATYRIASIS THE PRESIDENT WON A MOMENT OF RELATIVE SERENITY BY PROMISING TO GIVE JUSTICE DEPARTMENT INVESTIGATORS HIS FILES ON WHITEWATER DEVELOPMENT CORP SO IT'S TIME FOR A WHITEWATER PRIMER LAYING ASIDE SEX AND SUICIDE TO FOLLOW THE MONEY THE ESSENTIAL SUSPICION TO BE INVESTIGATED IS THIS THAT IN RETURN FOR CAMPAIGN CONTRIBUTIONS AND OTHER FINANCIAL FAVORS GOVERNOR CLINTON USED POLITICAL INFLUENCE TO KEEP A SHAKY SAVINGS AND LOAN AFLOAT WHILE IT WAS MILKED OF MONEY STICKING TAXPAYERS WITH THE TAB THROUGH FEDERAL DEPOSIT INSURANCE THE MADISON GUARANTY S&L WAS OWNED BY JAMES MCDOUGAL WHILE THE MCDOUGAL AND CLINTON FAMILIES WERE PARTNERS IN WHITEWATER IN ESSENCE THE ISSUE IS WHETHER GOVERNOR CLINTON DID FOR MADISON AND MCDOUGAL WHAT FIVE SENATORS DID FOR LINCOLN SAVINGS AND CHARLIE KEATING A GREAT DEAL HAS ALREADY BEEN PUBLISHED ON WHITEWATER THOUGH IT WASN'T MAKING HEADLINES WHEN WE OFFERED OUR DECEMBER 15 EDITORIAL ARKANSAS ANXIETIES THE ISSUE WAS RAISED DURING THE 1992 PRESIDENTIAL CAMPAIGN BY JEFF GERTH OF THE NEW YORK TIMES BUT WAS PUT TO REST WHEN THE CAMPAIGN PRODUCED A REPORT BY DENVER ATTORNEY JAMES LYONS IT WAS BOOSTED BACK IN THE NEWS THIS YEAR BY REPORTS THAT THE RESOLUTION TRUST CORP HAD REFERRED MADISON GUARANTY FOR CRIMINAL INVESTIGATION AND ESPECIALLY BY THE INDICTMENT OF FORMER JUDGE DAVID HALE WHO CHARGED THAT GOVERNOR CLINTON HAD URGED HIM TO MAKE A LOAN PARTLY RESPONSIBLE FOR THE RELATED FAILURE OF CAPITALMANAGEMENT SERVICES INC A SMALLBUSINESS INVESTMENT COMPANY THE FOLLOWING ITEMS HAVE BEEN REPORTED BY RESPONSIBLE PAPERS AND ARE DRAWN TOGETHER HERE IN WHAT WE HOPE WILL BE A COMPREHENSIBLE WHOLE MR CLINTON AND MR MCDOUGAL MET WHILE BOTH WORKED FOR SENATOR WILLIAM FULBRIGHT IN 1978 WHEN MR CLINTON WAS ARKANSAS ATTORNEY GENERAL THEY AND THEIR WIVES JOINED IN WHITEWATER A LANDDEVELOPMENT VENTURE ALONG THE WHITE RIVER IN THE OZARKS LIKE A LOT OF OTHER VENTURES OF THE TIME THE IDEA RAN AFOUL OF THE END OF EASY MONEY AND THE 19801982 RECESSIONS THE LYONS REPORT SAID THE CLINTONS LOST 69000 MR LYONS DESCRIBED THE CLINTONS AS PASSIVE SHAREHOLDERS THE WASHINGTON TIMES HOWEVER HAS UNCOVERED A LETTER IN WHICH HILLARY CLINTON ASKS MR MCDOUGAL FOR FULL POWER OF ATTORNEY OVER WHITEWATER WITH AUTHORITY TO EXECUTE CHECKS NOTES DEEDS AGREEMENTS CERTIFICATES RECEIPTS OR ANY OTHER INSTRUMENTS IT IS NOT KNOWN WHETHER THIS REQUEST WAS IMPLEMENTED WHITEWATER'S FINANCES WERE INTERMINGLED WITH ITS PRINCIPALS' FOR EXAMPLE IN WHAT THE CLINTONS' ATTORNEYS SAID WAS A PURE ERROR BOTH WHITEWATER AND THE CLINTONS TOOK TAX DEDUCTIONS FOR PAYMENTS BY WHITEWATER ON A LOAN MRS CLINTON TOOK OUT ON THE CORPORATION'S BEHALF MANY IMPORTANT WHITEWATER RECORDS ARE MISSING WHICH FRUSTRATED MR GERTH'S 1992 INVESTIGATION AND A RECENT PROBE BY FEDERAL PROSECUTORS MR MCDOUGAL CLAIMS AND THE CLINTONS DENY THAT THE RECORDS WERE DELIVERED TO THE ARKANSAS GOVERNOR'S MANSION AT THE BEHEST OF MRS CLINTON REPORTERS WHO HAVE EXAMINED THE CLINTONS' TAX RETURNS SAY NO WHITEWATER LOSS WAS CLAIMED FOR TAX PURPOSES INDEED THEY REPORTED A 1000 CAPITAL GAIN WHEN THEY DISPOSED OF THEIR INTEREST IN THE VENTURE BY RESELLING IT TO MR MCDOUGAL CHRIS WADE AN ARKANSAS REAL ESTATE AGENT WHO MANAGED WHITEWATER RECENTLY TOLD THE WASHINGTON POST THAT HE DOES NOT BELIEVE THE VENTURE LOST MONEY THE POST ALSO REPORTED THAT IN THE MID1980S TENS OF THOUSANDS OF DOLLARS WERE PASSING THROUGH WHITEWATER'S ACCOUNT AND THAT THE TRANSACTIONS SEEMED TO BEAR NO DIRECT CONNECTION TO WHITEWATER'S LOT SALES OR HOME DEVELOPMENT ACTIVITY MR MCDOUGAL DROVE A BENTLEY AROUND LITTLE ROCK WHILE HIS WIFE SUSAN ADVERTISED REAL ESTATE PROJECTS BY APPEARING ON TELEVISION IN HOT PANTS WHILE RIDING A WHITE HORSE A POST PROFILE REPORTED THAT IN THEIR HEYDAY IN LITTLE ROCK IT SEEMED THE CLINTONS AND MCDOUGALS COULDN'T GET ENOUGH OF EACH OTHER MCDOUGAL WAS SAID TO HAVE EASY ACCESS TO THE GOVERNOR'S OFFICE HE HAS SINCE UNDERGONE THE COLLAPSE OF MADISON AT A COST TO TAXPAYERS REPORTED AS 47 MILLION TO 60 MILLION HOSPITALIZATION IN A MANIC EPISODE ACQUITTAL IN A 1990 FRAUD TRIAL DIVORCE AND PERSONAL BANKRUPTCY IN 1985 MR MCDOUGAL HELD A FUNDRAISER IN THE MADISON GUARANTY LOBBY TO RETIRE GOVERNOR CLINTON'S 1984 CAMPAIGN DEBTS THE TIMES' MR GERTH HAS REPORTED THAT THE DEBT CONSISTED OF 50000 THE CAMPAIGN OWED TO MR CLINTON PERSONALLY WHICH HE IN TURNED OWED TO ANOTHER SMALL ARKANSAS BANK OWNED BY ONE OF HIS SENIOR AIDES SEVERAL OF THE 3000 DONATIONS WERE CASHIER'S CHECKS DRAWN ON MADISON ONE OF THEM WAS ISSUED IN THE NAME OF KEN PEACOCK AN ARKANSAS BUSINESSMAN WHO WAS THEN A 24YEAROLD SON OF A MADISON DIRECTOR HE TOLD THE POST HE WAS BAFFLED BY THE CHECK I DON'T KNOW ANYTHING ABOUT IT SHORTLY AFTER THE FUNDRAISER MADISON RECEIVED APPROVAL FROM BEVERLY BASSETT SCHAFFER MR CLINTON'S NEWLY APPOINTED FINANCIAL REGULATOR FOR A PLAN TO MEET ITS CAPITAL REQUIREMENTS BY SELLING PREFERRED STOCK MRS SCHAFFER HAD EARLIER BRIEFLY SERVED AS A LAWYER FOR MADISON AND MR MCDOUGAL SAID HE HAD URGED HER APPOINTMENT THE ARKANSAS DEMOCRAT GAZETTE RECENTLY REPORTED THAT SHE SAID SHE'D NEVER MET MR MCDOUGAL AND THAT IT WAS HER RELATIONSHIP WITH MR CLINTON NOT JAMES MCDOUGAL THAT HELPED HER LAND THE JOB AS SECURITIES COMMISSIONER MRS SCHAFFER DENIES ANY FAVORITISM TO MADISON AND THERE IS NO EVIDENCE THAT GOVERNOR CLINTON URGED HER TO GO EASY HOWEVER THE ATTORNEY REPRESENTING MADISON WAS HILLARY CLINTON ONE OF MRS SCHAFFER'S LETTERS ON THE ISSUE IS ADDRESSED TO THE ROSE LAW FIRM AND OPENS DEAR HILLARY MRS CLINTON RECEIVED A 2000AMONTH RETAINER FROM MADISON IN AN ACCOUNT DENIED BY THE WHITE HOUSE PRESS OFFICE MR MCDOUGAL TOLD THE LOS ANGELES TIMES I HIRED HILLARY BECAUSE BILL CAME IN WHIMPERING THEY NEEDED HELP DAVID HALE WAS ANOTHER PROMINENT ARKANSAS DEMOCRAT AND CLINTON SUPPORTER WHEN GOVERNOR CLINTON FORMED THE STATE'S FIRST MUNICIPAL CLAIMS COURT HE APPOINTED MR HALE AS ITS FIRST JUDGE BY EARLY 1986 THE LOS ANGELES TIMES REPORTED HE WAS RUNNING THE LARGEST COURT IN THE STATE HE WAS ALSO THE HEAD OF CAPITALMANAGEMENT SERVICES INC AN INVESTMENT COMPANY CHARTERED BY THE SMALL BUSINESS ADMINISTRATION LAST SEPTEMBER A FEDERAL GRAND JURY INDICTED MR HALE ON CHARGES OF DEFRAUDING THE SBA WHICH TOOK OVER THE FAILING COMPANY AS JOURNAL NEWS STORIES HAVE REPORTED THE SBIC WAS LEGALLY PERMITTED TO LOAN ONLY TO SOCIALLY OR ECONOMICALLY DISADVANTAGED PROPRIETORS PRIOR TO HIS INDICTMENT MR HALE MADE OFFERS TO IMPLICATE GOVERNOR CLINTON IN CONNECTION WITH A 300000 LOAN FROM CAPITAL MANAGEMENT TO A REAL ESTATE FIRM OWNED BY SUSAN MCDOUGAL INVESTIGATORS ARE TRYING TO DETERMINE IF PART OF THIS MONEY MADE ITS WAY INTO WHITEWATER IN INTERVIEWS WITH VARIOUS NEWSPAPERS MR HALE SAID MR MCDOUGAL URGED THE LOAN TO HELP CLEAN UP PROBLEMS INVOLVING THE POLITICAL FAMILY WHEN GOVERNOR CLINTON PERSONALLY URGED THE LOAN HE SAID I KNEW I HAD TO HELP THERE NEVER WAS ANY QUESTION THE WHITE HOUSE PRESS OFFICE HAS SAID PRESIDENT CLINTON HAS NO RECOLLECTION OF SUCH A CONVERSATION AND MR MCDOUGAL ALSO DENIES THE ACCOUNT MR HALE'S PLEABARGAIN ATTEMPTS WERE MADE WHEN THE CASE WAS BEING SUPERVISED BY PAULA CASEY A FORMER ASSOCIATE OF BOTH BILL AND HILLARY CLINTON WHO WAS APPOINTED TO THE LITTLE ROCK VACANCY WHEN THE CLINTON ADMINISTRATION DISMISSED ALL INCUMBENT US ATTORNEYS SHE RECUSED HERSELF FROM THE MADISONWHITEWATER CASE IN EARLY NOVEMBER BUT ALSO SAID SHE CONCURRED IN A DECISION BY EARLIER PROSECUTORS NOT TO FOLLOW IT WHEN IT WAS FIRST REFERRED IT HAS BEEN REFERRED A SECOND TIME AND IS NOW BEING HANDLED BY CAREER JUSTICE DEPARTMENT LAWYERS FROM WASHINGTON THE FACTS RECOUNTED ABOVE CONTAIN NO SMOKING GUN BUT THEY SURELY AROUSE SUSPICION SURELY HILLARY CLINTON WAS DISINGENUOUS IN SAYING DURING HER YEAREND INTERVIEW THAT SHE IS BEWILDERED THAT WHITEWATER REMAINS A TOPIC OF INQUIRY THE CLINTON ADMINISTRATION HAS JUST PROPOSED A SWEEPING CHANGE TO GIVE THE PRESIDENT MUCH MORE DIRECT CONTROL OVER REGULATION OF BANKS THROUGHOUT THE LAND BEFORE THAT HAPPENS AT THE VERY LEAST SOME OF THOSE INVOLVED IN WHITEWATER SHOULD GO UP ON OATH SOMEWHERE TO TESTIFY ON WHAT REALLY HAPPENED WHEN BILL CLINTON PRESIDED OVER BANKING REGULATION IN ARKANSAS 9312280003 931206 REVIEW & OUTLOOK EDITORIAL SOMALIA IN RETROSPECT IF THERE WAS ANY DOUBT MOHAMMED FARAH AIDID'S TRIP TO SOMALI PEACE TALKS IN ETHIOPIA ON A US PLANE WITH A US SECURITY ESCORT IS PROOF THAT THE US FORAY INTO SOMALIA HAS MOVED FAR WIDE OF ITS ORIGINAL GOAL TO FEED STARVING SOMALIS THAT EFFORT BEGAN WITH THE MUCHPUBLICIZED ARRIVAL OF NAVY SEALS ON DEC 9 OF LAST YEAR WHAT FOLLOWED IS A NICE CASE HISTORY IN THE WAY US FOREIGN POLICY LOSES FOCUS TO RECAP IN LATE SUMMER AND EARLY FALL OF 1992 WESTERN NEWS OUTLETS BEGAN HEAVY COVERAGE OF BOTH THE INTERNECINE WARFARE AND FAMINE PROMINENTLY FEATURING TV IMAGES OF STARVING CHILDREN THE MESSAGE WAS DO SOMETHING FOR AFRICA IN LATE NOVEMBER PRESIDENT BUSH COMMITTED US TROOPS TO A MULTINATIONAL FORCE IN EARLY DECEMBER THE UN APPROVED A USLED FORCE TO GUARANTEE THE DISTRIBUTION OF FOOD UNDER THE COMMAND OF MARINE LT GEN ROBERT JOHNSTON DURING THE ENTIRE BUSH PORTION OF THE MISSION US TROOPS WERE IN SOMALIA UNDER US COMMAND AND WERE THERE SOLELY TO ENSURE THE DELIVERY OF UN RELIEF SUPPLIES WHICH HAD BEEN BOTTLED UP IN THE PORT OF MOGADISHU BY INTERCLAN FIGHTING PRESIDENT BUSH ACCOMPLISHED THAT MISSION THOUGH IT SHOULD BE NOTED THAT BY NOT GOING THROUGH WITH EARLY EFFORTS TO DISARM THE WARRING FACTIONS HE MAY HAVE SOWN THE SEEDS OF TROUBLES TO COME WITH FOOD FLOWING AGAIN AND FIGHTING REDUCED TO A MINIMUM IN THE COUNTRY PRESIDENT CLINTON ON MAY 5 DECLARED THE MISSION IN SOMALIA A SUCCESS TURNING THE MISSION OVER TO UN COMMANDER GEN CEVIK BIR OF TURKEY MR CLINTON DECLARED ON THE SOUTH LAWN OF THE WHITE HOUSE BEFORE 100 VETERANS OF THE SOMALI OPERATION TODAY FOOD IS FLOWING CROPS ARE GROWING SCHOOLS AND HOSPITALS ARE REOPENING THOUGH THERE IS STILL MUCH TO BE DONE IF ENDURING PEACE IS TO PREVAIL ONE CAN NOW ENVISION A DAY WHEN SOMALIA WILL BE RECONSTRUCTED AS A FUNCTIONING CIVIL SOCIETY THIS OBVIOUSLY WAS THE TIME TO GET OUT OR THOROUGHLY RETHINK GOALS WE MUDDLED FORWARD APPROXIMATELY ONE MONTH LATER GENERAL AIDID'S FORCES AMBUSHED A UNIT OF PAKISTANI PEACEKEEPERS KILLING 24 AND WOUNDING 54 THE UN PUT A PRICE ON AIDID'S HEAD WHILE UNSUCCESSFUL AT CAPTURING AIDID UN FORCES WERE ENGAGING ALMOST DAILY IN HITANDRUN BATTLES WITH AIDID'S FORCES IN EARLY AUGUST MR CLINTON DISPATCHED ARMY RANGERS TO TRACK DOWN AND CAPTURE THE ROGUE GENERAL THE US GOAL WAS NOW THE UN'S GOAL IN LATE SEPTEMBER AIDID'S FORCES BEGAN SPECIFICALLY PROBING US DEFENSES GETTING IN ALMOST DAILY FIREFIGHTS THAT WENT LARGELY UNREPORTED IN THE US THEN ON OCT 3 THE RANGERS GOT PINNED DOWN BY AIDID'S FORCES AND LACKING ARMOR AND AC130 GUNSHIP SUPPORT DENIED TO THEM IN A POLICY DECISION BY DEFENSE SECRETARY ASPIN RETREATED WITH 12 DEAD AND 78 WOUNDED AFTER THE FIREFIGHT MR CLINTON COMMITTED MORE TROOPS TO SOMALIA AT THE SAME TIME HE SAID THE UN WARRANT FOR AIDID WOULDN'T BE CARRIED OUT IF HOSTILITIES CEASED AS THE UN WITHDREW THE BOUNTY FOR AIDID AND US TROOPS CEASED TO PATROL THE STREETS OF MOGADISHU MR CLINTON SET MARCH 31 AS THE FINAL UNCONDITIONAL WITHDRAWAL DATE FOR US TROOPS ABOUT THIS TIME AIDID EMERGED TO CAMERAS IN MOGADISHU AND WAS WELCOMED BY A CHEERING CROWD IN EARLY NOVEMBER CLAN FIGHTING INCREASED WITH THE DISCONTINUATION OF DAILY US PATROLS THE US ACKNOWLEDGED THAT THE STREETS OF MOGADISHU WERE AGAIN BLOCKADED MUCH AS THEY WERE WHEN US FORCES FIRST ARRIVED NEARLY A YEAR AGO THROUGH NOVEMBER AIDID'S ANTIUN RHETORIC GOT STRONGER BY THE DAY ACKNOWLEDGING THAT HE WOULD BOYCOTT THE UNBROKERED TALKS AND HOST HIS OWN IN JANUARY AIDID ON NOV 29 CALLED FOR A COMPLETE UN WITHDRAWAL FROM SOMALIA LAST THURSDAY HE WAS FLOWN BY US TROOPS TO ADDIS ABABA FOR PEACE NEGOTIATIONS THERE IS ALWAYS A DEGREE OF IMPROVISATION IN MAKING FOREIGN POLICY BUT THE RECORD SUGGESTS THAT THE FORMATION OF US POLICY IN SOMALIA HAS INVOLVED MORE IMPROVISATION AND LESS CLARITY ABOUT GOALS THAN IS PRUDENT FOR AMERICAN INTERESTS SEE RELATED LETTER LETTERS TO THE EDITOR FEED AND RUN IS NOT US POLICY WSJ DEC 28 1993 9312060044 YY93 MM12 9312280002 931228 PEPPERAND SALT THAN THE ENTIRE ITEM I'VE SENT FOR IT'S NO WONDER SO MANY MARRIAGES FAIL AND THE GROOM IS RARELY THE BEST MAN 9312280001 931228 BUSINESS BRIEF OCCIDENTAL PETROLEUM WINS REVERSAL IN CASE ON OILPRICE CONTROLS LOS ANGELES THE FEDERAL ENERGY REGULATORY COMMISSION REVERSED A 1988 ORDER THAT FOUND AN OCCIDENTAL PETROLEUM CORP SUBSIDIARY VIOLATED FEDERAL OILPRICE CONTROLS FROM LATE 1979 TO EARLY 1981 THE OIL AND CHEMICAL COMPANY SAID THAT ORDER REQUIRED OCCIDENTAL TO PAY ABOUT 264 MILLION PLUS INTEREST TO A SPECIAL GOVERNMENTADMINISTERED ACCOUNT THE AMOUNT OF THE POTENTIAL LIABILITY HAD GROWN TO ROUGHLY 1 BILLION AS INTEREST COMPOUNDED THE ORDER HAD FOUND THAT CITIES SERVICE OIL & GAS CORP OVERCHARGED FOR PRICECONTROLLED OIL IN CERTAIN CRUDEOIL TRANSACTIONS CITIES SERVICE WAS ACQUIRED BY OCCIDENTAL FOR 4 BILLION IN 1982 AND THE UNIT WAS LATER RENAMED OXY USA INC OCCIDENTAL BASED IN LOS ANGELES HAILED THE REVERSAL AS A VERY IMPORTANT STEP IN RESOLVING A LONGRUNNING DISPUTE THE ORDER HAD UNDERGONE NUMEROUS REVIEWS AND APPEALS OVER THE YEARS HOWEVER THE DEPARTMENT OF ENERGY'S ENFORCEMENT STAFF LAST YEAR FILED A SEPARATE PROCEEDING ALLEGING THAT THE TRANSACTIONS VIOLATED OTHER REGULATIONS THAT CASE WHICH SEEKS 254 MILLION PLUS INTEREST IS STILL PENDING BEFORE THE DOE'S OFFICE OF HEARINGS AND APPEALS WE ARE CONTINUING TO DEFEND OUR POSITION ON THE REMAINING ISSUES RAY R IRANI OCCIDENTAL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT DOE OFFICIALS COULDN'T BE REACHED LATE YESTERDAY IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE OCCIDENTAL SHARES CLOSED AT 1725 UP 125 CENTS 9312280102 930922 TEXAS JOURNAL TRACKING TEXAS THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR ROSE TO 10989 IN THE LATEST WEEK A 289 INCREASE FROM THE YEAREARLIER PERIOD A SLIGHT RISE IN TEXAS REFINERY OUTPUT IN THE MOST RECENT WEEK COMPENSATED FOR AN INCREASE IN INITIAL UNEMPLOYMENT CLAIMS MEANWHILE THE US SHORT LEADING INDEX DIDN'T CHANGE FROM JULY TO AUGUST SUGGESTING THE NATIONAL RECOVERY WILL REMAIN WEAK THE TEXAS ECONOMIC INDEX WAS DEVELOPED BY TEXAS PERSPECTIVES INC AUSTIN 9312280030 930915 TEXAS JOURNAL ECONOMIC FOCUS EXPLAIN THIS ECONOMY GROWS BUT LOANS SHRINK BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL WHY ARE TEXAS BANKERS SO STINGY FOR THE PAST SEVERAL YEARS THAT QUESTION HAS PLAGUED THE BUSINESS COMMUNITY HERE AFTER ALL IT'S EASY TO UNDERSTAND WHY BANK LOANS OUTSTANDING FELL BETWEEN 1985 AND 1987 THE ECONOMY COLLAPSED AND THE BANKING SYSTEM IMPLODED BUT SINCE THEN BANK FAILURES HAVE FALLEN DRAMATICALLY CAPITAL HAS IMPROVED AND NINE OF THE 10 BIGGEST BANKING COMPANIES HAVE BEEN RESCUED BY FEDERAL AUTHORITIES OR STRONG OUTOFSTATE BANKS OR BOTH YET YOU STILL NEED A CROWBAR TO SEPARATE BANKERS FROM THEIR MONEY BANKERS THEMSELVES OFTEN PUT THE BLAME ON DEMAND IF THERE WERE MORE HEALTHY COMPANIES WITH STRONG CASH FLOWS AND SMART BUSINESS PLANS ASKING FOR LOANS THEY SAY BANKS WOULD BE HAPPY TO PROVIDE THEM OTHERS SAY THAT THE LENDING WEAKNESS IS SIMPLY AN AFTERSHOCK OF THE FINANCIAL CRISIS DISENGAGING FROM BAD LOANS ESPECIALLY IN REAL ESTATE CAN TAKE A LONG TIME BUT TWO NEW STUDIES BY THE FEDERAL RESERVE BANK OF DALLAS SHOW THAT IT ISN'T THAT SIMPLE IN THE LATEST ISSUE OF THE SOUTHWEST ECONOMY FED ECONOMIST KEVIN J YEATS POINTS OUT THAT EMPLOYMENT HAS GROWN BY MORE THAN 12 SINCE THE END OF THE TEXAS RECESSION IN 1987 WHILE NOMINAL PERSONAL INCOME HAS POSTED CONSISTENT HEALTHY INCREASES THAT AVERAGED 65 ANNUALLY EVEN THROUGH THE RECENT NATIONAL RECESSION YET DESPITE THE RELATIVE VIBRANCE OF THE ECONOMY AND PRESUMABLY THE EXISTENCE OF VIBRANT POTENTIAL BORROWERS TOTAL BANK LOANS IN TEXAS DECLINED EVERY YEAR FROM 1985 THROUGH 1991 AND ONLY STARTED TO PICK UP AT THE END OF 1992 AND THE AFTERSHOCK THEORY ROBERT T CLAIR A DALLAS FED SENIOR ECONOMIST DEBUNKS THAT EXPLANATION IN HIS SIX CAUSES OF THE CREDIT CRUNCH OR WHY IS IT SO HARD TO GET A LOAN WRITTEN WITH PAULA TUCKER A FORMER DALLAS FED ANALYST IN THE LATEST EDITION OF THE FED'S QUARTERLY ECONOMIC REVIEW THE AUTHORS NOTE THAT THE PERCENTAGE OF TOTAL BANK ASSETS THAT WERE IN HEALTHY TEXAS BANKS SHOT UP TO NEARLY 82 IN 1992 FROM 19 IN 1987 BRINGING TEXAS NEARLY EVEN WITH THE BANKS IN THE FIVE HEALTHIEST FED DISTRICTS BUT A RELATIVELY SMALL PERCENTAGE OF THESE HEALTHY BANKS INCREASED THEIR LENDING ACTIVITIES COMMENSURATELY IN A SIMILAR STUDY LAST YEAR MR CLAIR FOUND THAT SOUTHWEST BANKS COULD INCREASE THEIR LENDING BY NEARLY 33 BILLION A 27 INCREASE BY REDUCING THEIR LIQUIDITY TO THE LEVEL OF MIDWEST BANKS SO WHAT EXACTLY IS WRONG WITH THE TEXAS BANKS MR CLAIR AND MS TUCKER RUN THROUGH A NUMBER OF EXPLANATIONS FOR STARTERS THERE ARE THE HIGHER CAPITAL STANDARDS ENACTED BY CONGRESS WHICH FORCE BANKS TO KEEP A HIGHER RATIO OF EQUITY TO LOANS SINCE FEW INVESTORS UNTIL RECENTLY HAVE BEEN WILLING TO RISK THEIR CAPITAL IN TEXAS BANKS THE BANKS OFTEN HAVE BEEN FORCED TO RESTRICT LOAN GROWTH TO IMPROVE THEIR RATIOS THERE'S ALSO THE FEAR OF LAWSUITSFROM BOTH BORROWERS AND REGULATORS PERHAPS MORE TO THE POINT IN TEXAS MR CLAIR AND MS TUCKER NOTE THE RELATIONSHIP BETWEEN BORROWERS AND THEIR BANKERS HAS BEEN DISRUPTED WITH THE WHOLESALE PURCHASE OF TEXAS BANKS WITHOUT PAST PERSONAL CONTACTS WITH DEBTORS THE NEW OWNERS HAVE BEEN MORE WILLING TO CALL LOANS AND LESS WILLING TO EXTEND NEW CREDIT TO BORROWERS WITH ANY BLEMISHES ON THEIR BALANCE SHEETS MR CLAIR FINDS NO EVIDENCE THAT BANK EXAMINERS OVERREACTED BY REQUIRING GOOD LOANS TO BE CHARGED OFF ALTHOUGH TEXAS BANKERS MIGHT ARGUE THAT POINT HE ALSO DISMISSES THE COMMONLY HEARD CRITICISM THAT OUTOFSTATE COMPANIES THAT BOUGHT TEXAS BANKS HAVE SHOWN LITTLE INTEREST IN LENDING TO TEXANS IN FACT JUST THE OPPOSITE IS TRUE SAYS ROBERT HUNTER VICE CHAIRMAN OF TEXAS COMMERCE BANCSHARES INC A HOUSTON UNIT OF CHEMICAL BANKING CORP THERE IS A LOT OF LENDING GOING ON HE SAYS WE'RE OUT HUSTLING BUSINESS IT'S JUST THAT NO MATTER HOW MANY LOANS BANKERS MAKE NOW HE ADDS IT'S HARD TO COUNTERACT THE GIANT DECLINE IN REALESTATE AND ENERGYRELATED LOANS HANGING OVER FROM THE LAST TWO DECADES AS FOR THE FUTURE MR YEATS'S ARTICLE ENDS ON AN UPBEAT NOTE HE EXPECTS TEXAS BANKS SOON SHOULD BE FUELING REAL ECONOMIC GAINS IN TEXAS WITH ADDITIONAL CREDIT THE REASON FOR THE CHANGE THERE'S A LIMITED AMOUNT OF INCREASED PROFITS THEY CAN GARNER IN SECURITIES MR YEATS SAYS THEY'RE GOING TO HAVE TO TURN TO OTHER SOURCES SUCH AS LENDING THE BIGGEST MYSTERY LEFT UNEXPLORED IN THE TWO FED STUDIES WAS PERHAPS THE GREATEST MYSTERY OF ALL HOW WAS IT POSSIBLE FOR THE TEXAS ECONOMY TO EXPAND IN THE FACE OF PLUMMETING BANK LOANS IT'S AN INTERESTING STORY BECAUSE IT FLIES IN THE FACE OF CONVENTIONAL WISDOM SAYS JAMES F SMITH A FINANCE PROFESSOR AT THE UNIVERSITY OF NORTH CAROLINA'S KENANFLAGLER BUSINESS SCHOOL AND FORMER HEAD OF THE UNIVERSITY OF TEXAS' BUREAU OF BUSINESS RESEARCH MR SMITH SAYS THE MORAL OF THE STORY IS THAT IF YOU HAVE ENOUGH ENTREPRENEURS THEY'LL FIND A SOURCE OTHER THAN BANKS WHEN THE BANKS ARE UNABLE OR UNWILLING TO LEND THE FED'S MR CLAIR ACKNOWLEDGES THERE'S SOMETHING TO THAT ANECDOTAL INFORMATION SUGGESTS THAT TEXAS BUSINESSES BEGAN TO RELY MORE HEAVILY ON TRADE CREDIT FOR INSTANCE WAITING LONGER TO SETTLE ACCOUNTS PAYABLE A LOT OF TEXAS BUSINESSES LEARNED TO GET BY WITH LESS FUNDS HE SAYS THEY LEARNED TO MANAGE THEIR MONEY MORE TIGHTLY 9312280027 930915 TEXAS JOURNAL HERE'S A BETTER IDEA SELL SLIMFAST THE MAILING LIST BY JEFF D OPDYKE I FAX YOU FAX WE ALL FAX FOR ICE CREAM SO IT DOESN'T RHYME IT'S STILL THE LATEST ER SCOOP IN TEXANS' FONDNESS FOR HOMEGROWN BLUE BELL ICE CREAM OUT OF TINY ALLEN COMES THIS TREAT THE ICE CREAM FAX LINE A WEEKLY HALFPAGE NEWSLETTER DEVOTED TO UNCOVERING THE LOWEST PRICES ON BRENHAM'S MOST FAMOUS CONTRIBUTION TO HAUTE CUISINE THE ICE CREAM FAX LINE IS THE BRAINCHILD OF MARK STEWART A COMPUTERSOFTWARE ENGINEER BY TRADE AND A BLUE BELL FAN SINCE HE MOVED TO TEXAS SIX YEARS AGO SITTING AROUND WITH HIS ROOMMATE ONE EVENING EATING BLUE BELL THEY FIGURED SOMEONE SHOULD COMPILE A LIST OF WHICH STORES OFFER THE LOWEST PRICES ON HALFGALLONS SO MR STEWART FILLED THAT VOID HIMSELF COMPARISON SHOPPING AT EIGHT TO 10 STORES AROUND PLANO SUBSCRIPTIONS RUN 1 A MONTH AND FOR THOSE WITHOUT A FAX THERE'S MAIL SERVICE AS WELL AS AN ICE CREAM HOT LINE 2148888890 FOR 24 HOURS A DAY UPTOTHEMINUTE PRICE BREAKS BY THE WAY THIS MONTH'S LOWPRICE LEADER SACK N' SAVE WHERE A HALFGALLON OF BLUE BELL RETAILS FOR 238 AND MR STEWART'S FAVORITE FLAVOR CHOCOLATE CHIP COOKIE DOUGH 9312280018 930915 TEXAS JOURNAL BUILDERS HURT BY OUTOFSTATE INVASION BUT HOME BUYERS GAIN AS COMPETITION KEEPS PRICES DOWN BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL FOREIGN HOME BUILDERS ARE INVADING TEXAS LURED BY SKYROCKETING HOME SALES OUTOFSTATE BUILDERS ARE DESCENDING ON THE STATE GOBBLING UP LOTS DEVELOPING NEW AREAS AND IN SOME CASES SLASHING PRICES IN AN AGGRESSIVE PUSH TO GAIN MARKET SHARE FOR PROSPECTIVE HOME BUYERS THE INVASION IS A BLESSING KEEPING NEW HOMES AFFORDABLE AND GIVING THEM A GREATER VARIETY OF HOMES TO CONSIDER BUT EXISTING HOMEOWNERS ARE DISTRESSED AT THE SLUGGISH PRICES IN THE FACE OF BOOMING DEMAND AND FOR MOST LOCAL BUILDERS MANY OF WHOM BARELY SURVIVED THE DRY SPELL OF THE LATE 80S THE INTERLOPERS ARE STEALING BUSINESS THEY HAVE LONG BEEN COUNTING ON WE'RE JUST GETTING TOO MANY BUILDINGS IN THIS MARKETPLACE FROM THE OUTSIDE SAYS MARTIN PERLMAN A CONSULTANT WITH A JAY HOMES INC A HOUSTON CUSTOMHOME BUILDER AND FORMER PRESIDENT OF THE NATIONAL ASSOCIATION OF HOME BUILDERS THERE'S JUST A FINITE PIECE OF THE PIE IT'S EASY TO SEE WHY TEXAS HAS CAPTURED THE ATTENTION OF OUTSIDERS ACCORDING TO THE NATIONAL ASSOCIATION OF HOME BUILDERS PERMITS FOR SINGLEFAMILY HOMES IN TEXAS INCREASED 10 FOR THE FIRST SIX MONTHS OF THE YEAR COMPARED WITH A NATIONWIDE INCREASE OF JUST 4 THE STATE IS ESPECIALLY ALLURING FOR COMPANIES IN CALIFORNIA WHERE SINGLEFAMILY PERMITS DROPPED 9 IN THE FIRST HALF OF THE YEAR ADD THE STATE'S CHEAP LAND AND LABOR GOOD WEATHER AND FRIENDLY REGULATORY CLIMATE AND IT'S CLEAR WHY SUCH BUILDERS AS LENNAR CORP OF MIAMI CONTINENTAL HOMES HOLDING CORP OF SCOTTSDALE ARIZ AND STANDARD PACIFIC CORP OF COSTA MESA CALIF ARE FLOCKING TO TEXAS STANDARD PACIFIC FOR INSTANCE JUST EXPANDED INTO AUSTIN AND IN THE LAST TWO YEARS HAS INCREASED ITS LOT OWNERSHIP IN HOUSTON AND DALLAS BY MORE THAN 300 TO 2300 THE RUSH ISN'T LIMITED TO BIG PLAYERS ELLIOTT HOMES INC A FAMILYOWNED BUILDER FROM FOLSOM CALIF ENTERED THE HOUSTON MARKET IN THE EARLY 1980S AND QUICKLY PULLED BACK WHEN THE DOWNTURN HIT BUT IT HELD ONTO ABOUT 600 ACRES IN THE HOUSTON SUBURB OF KATY NOW WE'RE DRAGGING IT OUT OF MOTHBALLS AND BUILDING HOMES AGAIN SAYS RUSS DAVIS ELLIOTT'S VICE PRESIDENT FOR PROJECT DEVELOPMENT NOT ALL LOCAL BUILDERS ARE DISTRESSED BY THE NEWCOMERS EARLIER THIS YEAR FOR INSTANCE AUSTIN BUILDER SCOTT FELDER ENTERED INTO A LIMITED PARTNERSHIP WITH RYLAND GROUP INC A COLUMBIA MD HOME BUILDER THAT HAS BEEN IN THE DALLAS AND HOUSTON MARKETS SINCE THE 1970S USING RYLAND'S ACCESS TO CAPITAL ON THE PUBLIC MARKETS MR FELDER EXPECTS TO BUILD 650 HOMES WORTH MORE THAN 100 MILLION THIS YEAR UP 35 IN DOLLAR VOLUME FROM THE YEAR EARLIER THE HOMES WILL BEAR THE SCOTT FELDER NAME BUT THE DEAL CALLED FOR MR FELDER TO GIVE UP AN UNDISCLOSED SHARE OF THE BUSINESS HE FOUNDED IN 1982 ONE OF THE REASONS WE DECIDED IT WAS IN OUR INTEREST TO JOIN FORCES WITH A PUBLICLY HELD COMPANY WAS TO GIVE US THE FINANCIAL STRENGTH TO TAKE ADVANTAGE OF THIS TYPE OF MARKETPLACE MR FELDER SAYS WELLKNOWN AUSTIN BUILDER BILL MILBURN OF MILBURN INVESTMENTS WENT A STEP FURTHER HE SOLD HIS COMPANY TO ARIZONA'S CONTINENTAL FOR 26 MILLION IN CASH AND STOCK AND JM PETERS CO OF NEWPORT BEACH CALIF WHICH IS LOOKING TO BUY A TEXAS BUILDER GETS ABOUT TWO CALLS A MONTH FROM PROSPECTIVE SELLERS IF WE CAN'T FIND A COMPANY THAT FITS OUR PROGRAM WE WOULD START FROM SCRATCH SAYS DALE DOWERS PRESIDENT OF PETERS BUT MOST TEXAS BUILDERS SEE ONLY TROUBLE FROM THE OUTOFSTATERS THE PROBLEM THEY SAY IS SIMPLE THE INCREASED COMPETITION IS SQUEEZING THEM ON BOTH COSTS AND REVENUE ON THE COST SIDE THE NEWCOMERS ARE CONTRIBUTING TO A SHORTAGE OF HOUSING LOTS IN THE MOST POPULAR MARKETS SUCH AS NORTH PLANO AND FLOWER MOUND IN THE DALLAS AREA OR ROUND ROCK IN THE AUSTIN AREA TWO YEARS AGO AN AUSTIN BUILDER COULD FIND DEVELOPED LAND FOR AN ENTRYLEVEL OR MIDRANGE HOME FOR 1500 TO 3000 AN ACRE SAYS TERRY MITCHELL GENERAL COUNSEL FOR MILBURN INVESTMENTS NOW THE PRICE IS 8000 TO 12000 AN ACRE HE SAYS AT THE SAME TIME LOT PRICES ARE CLIMBING HOUSING PRICES ARE STAYING FAIRLY STEADY ACCORDING TO THE NATIONAL ASSOCIATION OF HOME BUILDERS DEMAND FOR NEW SINGLEFAMILY HOMES IN DALLAS HOUSTON AND SAN ANTONIO ROSE AN AVERAGE 15 IN 1992 FROM THE YEAR EARLIER YET THE AVERAGE COST PER SQUARE FOOT FOR A NEW HOME DURING THAT SAME PERIOD ROSE ONLY 3 TO ABOUT 4650 TRANSLATING INTO 116200 FOR A 2500SQUAREFOOT HOME INDUSTRY EXPERTS SAY THAT WITH THE EXCEPTION OF AUSTIN TEXAS HOUSING MARKETS HAVE CONTINUED TO SHOW ONLY MODEST PRICE INCREASES THIS YEAR WHOM DO TEXAS BUILDERS BLAME FOR THE DISPARITY BETWEEN PRICE AND DEMAND ONE GUESS BUILDERS SAY FOR INSTANCE THAT WHEN LENNAR FLORIDA'S LARGEST HOME BUILDER CAME TO DALLAS LAST YEAR THE COMPANY SLASHED PRICES TO WIN A QUICK TOEHOLD BILL ASH SALES MANAGER FOR AVERYEDWARDS CUSTOM HOMES IN PLANO SAYS LENNAR MATCHED THE PRICES OF LOCAL BUILDERS AND THEN THREW IN SOME 7000 TO 8000 WORTH OF BELLS AND WHISTLES INCLUDING REFRIGERATORS INTERCOMS AND SECURITY SYSTEMS MR ASH SAYS THAT HIS COMPANY WAS FORCED TO PROVIDE SIMILAR INCENTIVES SQUEEZING PROFITS IN HINDSIGHT MR ASH SAYS IF I HAD KNOWN THAT AND I BEEN IN THE POSITION TO DECIDE TO GO INTO A SUBDIVISION NEXT TO THEM I WOULD NOT HAVE GONE NEAR THEM LENNAR CHAIRMAN LEONARD MILLER SAYS HE EXPECTS LENNAR'S TEXAS SALES THIS YEAR TO BE MORE THAN DOUBLE LAST YEAR'S 19 MILLION HE SAYS HOWEVER THE COMPANY DIDN'T UNDERCUT LOCAL HOME PRICES TO GET THERE WE GAVE WHAT WE CONSIDERED TO BE VERY STRONG VALUE MR MILLER SAYS FOR HOME BUYERS MODEST PRICE RISES AREN'T THE ONLY BENEFIT OF INCREASED COMPETITION IN ADDITION THEY SAY THE OUTOFSTATE BUILDERS ARE BRINGING NEW ARCHITECTURAL STYLES CALIFORNIA BUILDERS FOR ONE ARE OFFERING HOUSES WITH STUCCO MORE OPEN SPACES AND BIGGER WINDOWS IT'S AN ALTERNATIVE TO THE BRICK BOX SAYS KENNETH H KLOPP SENIOR VICE PRESIDENT OF MARKETING AND SALES FOR MARKBOROUGH TEXAS INC A HOUSTON DEVELOPER LYNN NUNEZ A MORTGAGE BANKER IN HOUSTON SAYS THAT WHEN HE AND HIS FAMILY BEGAN LOOKING FOR A NEW HOME EARLIER THIS YEAR EVERY HOUSE LOOKED THE SAME BUT AFTER TOURING A HOME IN MARKBOROUGH'S NEW TERRITORY DEVELOPMENT NEAR SUGARLAND WITH ITS HIGH CEILINGS CUSTOM TOUCHES AND LOTS OF GLASS HE WAS SOLD IT WAS ONLY LATER DURING CONTRACT NEGOTIATIONS THAT MR NUNEZ DISCOVERED THE HOUSE WAS OFFERED BY DAVID MOORE OWNER OF WESTPORT HOMES INC APTOS CALIF THE HOUSE JUST REALLY STOOD OUT AMONG ALL THE OTHER HOMES MR NUNEZ SAYS I THINK MAYBE THE CURRENT GENERATION OF TEXAS HOME BUYER IS READY FOR SOMETHING DIFFERENT THAN THE HOUSE THEY GREW UP IN CALIFORNIA BUILDERS SAY THAT WHILE THEIR NONTRADITIONAL STYLES CAN HELP MAKE A SALE THE TEXAS MARKET HOLDS PLENTY OF CHALLENGES TEXAS HOME BUYERS WANT BIGGER BATHROOMS WITH DOUBLE CLOSETS DOUBLE VANITIES AND SEPARATE TUB JACUZZI AND SHOWER SAYS MR MOORE WHO ENTERED THE HOUSTON MARKET LAST YEAR PEOPLE ARE REALLY REALLY INTO THEIR HOMES MR MOORE ADDS THAT CALIFORNIA CONSUMERS ACCUSTOMED TO EXORBITANT HOME PRICES EXPECT ONLY THE BASICS WHEN THEY BUY A 250000 HOME IN TEXAS HE SAYS THE BUYER OF A 250000 HOME WANTS FEATURES LIKE WOOD FLOORS MARBLE ENTRIES OR GRANITE COUNTER TOPS SO WHAT'S NEXT FOR TEXAS HOUSING THE BIG FEAR AMONG BUILDERS IS THAT THE RUSH TO THE STATE WILL CAUSE THE HOUSING BOOM TO FIZZLE OUT PREMATURELY A VICTIM OF OVERBUILDING IT MAKES ME A LITTLE NERVOUS THAT THERE ARE SO MANY FIRMS THAT ARE MOVING THERE SAYS LARRY HORAN A REALESTATE ANALYST AT PRUDENTIAL SECURITIES IN NEW YORK IF YOU GET A LOT OF PEOPLE DOING THAT AT ONCE YOU HAVE A SITUATION WHERE WHAT WAS A GOOD MARKET MIGHT DETERIORATE TO A SOFT MARKET STILL MANY BUILDERS ARE RESIGNED TO THE INTRUDERS' SUDDEN INTEREST AFTER ALL THEY REMEMBER WHEN THE TABLES WERE TURNED WE'VE KIND OF GOT IT COMING I GUESS SAYS LARRY SKELTON PRESIDENT OF LARRY SKELTON HOMES IN HOUSTON WHEN THINGS DRIED UP IN HOUSTON TEXAS BUILDERS WERE GOING TO ATLANTA NORTH CAROLINA AND TENNESSEE NOW MAYBE IT'S OUR TURN TO HAVE SOME FOLKS COME VISIT US 9312280011 930915 TEXAS JOURNAL HEARD IN TEXAS FIRST CITY'S PREFERRED STOCK MAY HOLD KEY TO MONEY IN THE BANK BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON CHASING INVESTMENT RICHES IN THE STOCK OF FAILED COMPANIES IS FOR THE MOST PART LIKE SHOWING UP THREE HOURS LATE FOR A COMPANY PICNIC TYPICALLY YOU'RE LEFT WITH THE CRUMBS BUT THAT MIGHT NOT BE THE CASE WITH CERTAIN PREFERRED SHARES OF FIRST CITY BANCORP OF TEXAS THE HOUSTON BANK HOLDING COMPANY NOW IN CHAPTER 11 WHICH DESPITE ITS NAME NO LONGER OWNS ANY BANKS LATE LAST YEAR THE FEDERAL DEPOSIT INSURANCE CORP SEIZED FIRST CITY'S BANKS FEARING THE PARENT WAS NEAR RUIN AND SOLD THEM OFF TO A DOZEN BUYERS IN FEBRUARY WITH THE HEFTIEST CHUNK GOING TO HOMETOWN RIVAL TEXAS COMMERCE BANCSHARES A SUBSIDIARY OF CHEMICAL BANKING CORP OF NEW YORK THOUGH MOST OF ITS ONCEBUSTLING OFFICE CORRIDORS ARE DARK AND SILENT THE HOLDING COMPANY STILL HAS A PULSE RUNNING A FEW NONBANKING ENTERPRISES INCLUDING AN INSURANCE CONCERN ORIGINALLY THE FDIC ESTIMATED FIRST CITY'S CLOSURE WOULD COST THE FDIC'S BANK INSURANCE FUND 500 MILLION BUT THE FEDERAL AGENCY NOW REPORTS THAT BECAUSE FIRST CITY'S ASSETS FETCHED AN UNEXPECTED 434 MILLION PREMIUM THE COMPANY HAS COMING TO IT A PROJECTED SURPLUS OF 60 MILLION AFTER THE PAYMENT OF CERTAIN COSTS ASSOCIATED WITH THE SEIZURE MORE THAN ENOUGH TO COVER FIRST CITY'S 519 MILLION IN BONDS OUTSTANDING NEWS OF THE SURPLUS BOOSTED FIRST CITY'S NOTES TO ABOUT 80 CENTS ON THE DOLLAR CURRENTLY FROM A LOW OF 19 CENTS ON THE DOLLAR AFTER THE BANKRUPTCY FILING BUT FIRST CITY OFFICIALS SAY THERE IS MORE TO THIS STORY MUCH MORE IF THEIR ARITHMETIC IS ACCURATE THEY CONTEND THAT BASED ON FIRST CITY'S EQUITY AT THE TIME OF SEIZURE AND THE VALUE OF ITS LOANLOSS AND LEASE RESERVES THE FDIC SHOULD RETURN TO THE COMPANY NOT 60 MILLION BUT AS MUCH AS 549 MILLION AND IF THAT PROVES TRUE THEN NOT ONLY DO BONDHOLDERS STAND TO RECOUP THEIR ENTIRE INVESTMENT BUT PREFERRED STOCKHOLDERS COULD COLLECT ABOUT 55 MILLION IN UNPAID DIVIDENDS THERE'S DEFINITELY VALUE IN CERTAIN PREFERRED SHARES SAYS WILLIAM L EDDLEMAN JR A DISTRESSEDSECURITIES ANALYST WHO TRACKS FIRST CITY FOR HARRIS SECURITIES IN DALLAS OF COURSE THE QUESTION IS WHETHER FIRST CITY CAN SQUEEZE MORE THAN 500 MILLION FROM THE FDIC WHICH ISN'T COMMENTING ON THE COMPANY'S CLAIM BUT STANDS BY ITS 60 MILLION ESTIMATE FIRST CITY IS CONSIDERING A LAWSUIT AGAINST THE FDIC TO RECOVER THE MONEY THE COMPANY HAS UNTIL SEPT 24 TO DO SO AND WHILE FIRST CITY MIGHT NOT REGAIN THE ENTIRE SUM I THINK THEY'LL EVENTUALLY SEE AT LEAST 200 MILLION TO 400 MILLION SAYS MR EDDLEMAN A HEFTY PAYOFF SOME ANALYSTS SAY WOULD MEAN THAT FIRST CITY'S PREFERRED STOCK OFFERS A POTENTIALLY BOUNTEOUS RETURN PARTICULARLY THE SERIES B SHARES THOSE SHARES WHICH RECENTLY TRADED BETWEEN 1350 AND 1450 EACH ON THE PINK SHEETS CARRY A 50 LIQUIDATION VALUE AND HAVE ACCUMULATED 1375 A SHARE IN UNPAID DIVIDENDS EACH SERIES B SHAREHOLDER THEREFORE COULD RECEIVE MORE THAN 60 FOR EVERY SHARE OWNED FIRST CITY COULD BE THE HOME RUN OF THE 1990S SAYS BRUCE MATES PARAGON CAPITAL VICE PRESIDENT OF OTC TRADING MR MATES WAS A SELLER OF THE PREFERRED B SHARES IN JANUARY DUMPING 64000 SHARES AT SEVEN CENTS EACH I THOUGHT I WAS THE SMARTEST MAN IN THE COUNTRY HE SAYS CONSIDERING TODAY'S PRICE AND THE POTENTIAL FOR FURTHER GAINS NOBODY'S SICKER THAN ME FIRST CITY HAS TWO OTHER CLASSES OF PREFERRED STOCK IN CIRCULATION BUT SERIES B WITH MORE THAN 23 MILLION SHARES OUTSTANDING IS THE CLASS MOST ACCESSIBLE BY INVESTORS BE ADVISED THOUGH THE B SHARES ARE A SPECULATIVE INVESTMENT IN BANKRUPTCYLAW PROCEEDINGS STOCKHOLDERS FREQUENTLY GET WIPED OUT IN A LIQUIDATION OR RECEIVE A TINY PORTION OF NEW EQUITY IN A RESTRUCTURING IN FIRST CITY'S CASE IT WOULD SEEM THAT FOR THE PREFERRED HOLDERS TO GET ANYTHING WOULD REQUIRE A HIGH DOLLAR SETTLEMENT SAYS BANKING ANALYST FRANK ANDERSON AT STEPHENS INC OF LITTLE ROCK ARK AND TRYING TO GUESS WHAT THE COURTS WILL DECIDE IS LIKE TRYING TO PUT TOOTHPASTE BACK IN THE TUBE IT'S MOST DIFFICULT EVERYTHING OF COURSE HINGES ON FIRST CITY'S ASSESSMENT OF WHAT IT'S DUE AND WHAT THE COURTS EVENTUALLY DECIDE IN PAPERS FILED IN AN ADMINISTRATIVE HEARING IN WASHINGTON DC EARLIER THIS YEAR FIRST CITY ARGUES THAT THE FDIC ULTIMATELY WILL TAKE IN 938 MILLION FROM THE CLOSURE OF FIRST CITY THE 434 MILLION PREMIUM ON THE SALE OF THE ASSETS AND A PROJECTED 504 MILLION FROM THE LIQUIDATION OF BANK PREMISES OTHER REAL ESTATE AND THE ASSETS OF THE COLLECTING BANK WHICH WAS ESTABLISHED TO HOUSE FIRST CITY'S SOURED LOANS IN A 1988 RECAPITALIZATION FROM THAT AMOUNT BANK OFFICIALS ALLOW FOR 165 MILLION IN LOAN LOSSES FOR A POOL OF LOANS PURCHASED BY THE BANKS THAT BOUGHT FIRST CITY'S ASSETS AND GUARANTEED BY THE FDIC AS WELL AS 224 MILLION FOR UNINSURED DEPOSITORS THE RESULT A 549 MILLION SURPLUS FIRST CITY THEN ESTIMATES IT CURRENTLY OWES ROUGHLY 10 MILLION IN BILLS WHICH MUST BE PAID THE FDIC HAS FILED 118 MILLION IN CLAIMS AGAINST THE HOLDING COMPANY BUT PEOPLE CLOSE TO FIRST CITY SAY THOSE CLAIMS PROBABLY WILL BE SETTLED FOR BETWEEN ZERO AND 50 MILLION AND DALLASBASED ELECTRONIC DATA SYSTEMS CORP HAS A 55 MILLION CLAIM AGAINST FIRST CITY FOR A CONTRACT THE FDIC RUPTURED WHEN IT SEIZED THE BANK ESTIMATES ARE THAT CLAIM WILL BE SETTLED FOR SUBSTANTIALLY LESS THAN THAT ALL TOLD FIRST CITY MUST APPORTION 82 MILLION TO 132 MILLION BEFORE PREFERRED SHAREHOLDERS GET A SWIPE AT ANY MONEY BUT IF FIRST CITY IS RIGHT AND THE FDIC INDEED SHOULD RETURN TO THE COMPANY AS MUCH AS 549 MILLION THEN AFTER PAYING OFF BONDHOLDERS AND CREDITORS THERE COULD REMAIN 417 MILLION TO 467 MILLION TO SPREAD AMONG PREFERRED AND COMMON STOCKHOLDERS BUT EVEN IF THAT NUMBER IS TOO HIGH AND THE FDIC ULTIMATELY REMITS SOMETHING NEAR THE MIDPOINT OF MR EDDLEMAN'S ESTIMATE THEN THERE STILL COULD BE AS MUCH AS 218 MILLION REMAINING ADD THAT TO THE 40 MILLION IN HOLDINGCOMPANY ASSETS AND THERE IS ENOUGH MONEY TO COVER THE PAR VALUE AND UNPAID DIVIDENDS FOR ALL THREE CLASSES OF PREFERRED STOCK I HAVE NO DOUBT ABOUT THE SURPLUS WE'RE DUE SAYS ROBERT W BROWN FIRST CITY PRESIDENT BUT GETTING THE FDIC TO COME TO TERMS WITH US IS LIKE TRYING TO GET AN ELEPHANT INTO A HALF NELSON INVESTORS BLINDSIDED OPTICAL DATA SYSTEMS LAST WEEK DRIVING DOWN THE STOCK PRICE OF THIS MAKER OF COMPUTERNETWORKING GEAR BY NEARLY 42 TO 1050 THE DROP CAME IN RESPONSE TO COMPANY REPORTS THAT THIRDQUARTER EARNINGS COULD BE OFF AS MUCH AS 30 FROM THE SECOND QUARTER WHILE SALES COULD TUMBLE AS MUCH AS 10 FOR THE SECOND QUARTER RICHARDSONBASED OPTICAL DATA REPORTED NET INCOME OF 15 MILLION OR 19 CENTS PER SHARE ON SALES OF 148 MILLION G WARD PAXTON PRESIDENT AND CHIEF EXECUTIVE NOTED THAT SALES TO NEW MAJOR CUSTOMERS HAVE BEEN LESS THAN EXPECTED IN THE THIRD QUARTER AND THAT EUROPEAN SALES HAVE BEEN VERY SLOW EARLIER THIS SUMMER LADENBURG THALMANN & CO DOWNGRADED OPTICAL DATA TO SELL REASONING THAT THE COMPUTERNETWORKING INDUSTRY IS ABOUT TO UNDERGO A MAJOR CONSOLIDATION AND THAT THE COMPANY'S KEY COMPETITOR AND PRICE LEADER SYNOPTICS COMMUNICATIONS SANTA CLARA CALIF IS BETTER POSITIONED ALSO SYNOPTICS RECENTLY CUT PRICES UP TO 23 WHICH IS EXPECTED TO HAMPER EARNINGS AT COMPUTERNETWORK MAKERS SEPT 9 1987 THE FDIC AGREES TO A 15 BILLION FEDERALLY ASSISTED BAILOUT OF FIRST CITY BANCORP FORMER CHICAGO BANKER A ROBERT ABBOUD GAINS MANAGEMENT CONTROL MARCH 1991 MR ABBOUD IS OUSTED AFTER SEVERAL RISKY OUTOFSTATE LOANS SOUR MARCH 1992 WITH FIRST CITY POSTING LOSSES OF MORE THAN 383 MILLION IN TWO YEARS THE FDIC SEEKS A RESCUER THAT DOESN'T REQUIRE FEDERAL ASSISTANCE THERE AREN'T ANY TAKERS AUGUST 1992 FIRST CITY ANNOUNCES ITS OWN RECAPITALIZATION PLAN NOV 1 1992 THE FDIC SEIZES FIRST CITY FOR A SECOND TIME SAYING THE RECAPITALIZATION PLAN WOULDN'T STANCH LOSSES BONDHOLDERS THEN FORCE THE COMPANY INTO FILING FOR BANKRUPTCY JAN 27 1993 THE FDIC SELLS FIRST CITY'S ASSETS FOR A 434 MILLION PREMIUM 9312280010 930915 TEXAS JOURNAL TEACHER FUND LEARNS REALESTATE LESSON BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN SIX MONTHS AFTER A BLISTERING REBUKE BY THE STATE ATTORNEY GENERAL'S OFFICE THE TEACHER RETIREMENT SYSTEM OF TEXAS IS STARTING TO GET A GRIP ON ITS TROUBLED REALESTATE OPERATIONS THE 367 BILLION FUND WHICH MANAGES RETIREMENT MONEY FOR 660000 PEOPLE HAS HIRED A NEW REALESTATE CHIEF AND FOR THE FIRST TIME IS MOVING TO SELL PROPERTIES ON WHICH IT HAS FORECLOSED AND AT THE BEHEST OF THE SYSTEM'S TRUSTEES COOPERS & LYBRAND IS CONDUCTING A DETAILED INVESTIGATION OF POSSIBLE ETHICS VIOLATIONS BY FORMER FUND REALESTATE OFFICIALS THESE EFFORTS ARE MEANT TO GET THE FUND OUT AND PREVENT A REPEAT OF ITS CURRENT MESS IT HAS ALREADY FORECLOSED ON 17 PROPERTIES IN ITS 2 BILLION REALESTATE PORTFOLIO AND FEWER THAN HALF OF THE 36 REMAINING MORTGAGES IT HOLDS ARE IN GOOD STANDING WITH THE BORROWER UPTODATE ON PAYMENTS AND THE PROPERTY'S APPRAISED VALUE GREATER THAN THE LOAN BALANCE THE PROBLEMS HAVE BECOME SO BIG THAT 70 OF OUR TIME IS SPENT ON REAL ESTATE THOUGH IT ACCOUNTS FOR LESS THAN 6 OF ASSETS SAYS WAYNE BLEVINS EXECUTIVE DIRECTOR OF THE SYSTEM TO LEAD THE TURNAROUND EFFORT THE TEACHER RETIREMENT SYSTEM LAST MONTH HIRED LAURIE L DOTTER A 32YEAROLD FORMER CONSULTANT IN COOPERS & LYBRAND'S DALLAS OFFICE WHILE AT COOPERS MS DOTTER LED AN EARLIER REVIEW OF THE SYSTEM'S REALESTATE OPERATIONS FOR ITS TRUSTEES AT ABOUT THE SAME TIME AS THE ATTORNEY GENERAL'S STUDY SHE HARSHLY CRITICIZED THE SYSTEM FOR LACKING CONTROLS AND GUIDELINES I THINK HER HIRING REPRESENTS A REAL COMMITMENT TO STRAIGHTENING THINGS OUT SAYS PETER WINN A SPECIAL ASSISTANT ATTORNEY GENERAL WHO LED THE STATE PROBE EVEN BEFORE JOINING THE FUND MS DOTTER WAS GETTING THINGS DONE THERE WHILE STILL WITH COOPERS SHE RECOMMENDED PROCEDURES TO ENCOURAGE THE SALE OF FORECLOSED PROPERTIES THE BOARD APPROVED THE CHANGES EARLIER THIS YEAR AFTER JOINING THE FUND SHE DRAFTED OTHER CHANGES THAT THE TRUSTEES APPROVED LAST WEEK ONE NEW RULE REQUIRES LOAN RESTRUCTURINGS TO BE HANDLED BY A SPECIAL TEAM NOT BY THE ORIGINAL LOAN MANAGER TO GUARD AGAINST REPEATED RESTRUCTURINGS AS HAPPENED IN AT LEAST ONE DEAL INVOLVING THE SYSTEM LIKE MANY OTHER FINANCIAL INSTITUTIONS THE TEXAS TEACHERS' FUND INVESTED HEAVILY IN REAL ESTATE IN THE EARLY 1980S A TOTAL OF 24 BILLION OR ABOUT 7 OF ITS ENTIRE PORTFOLIO BEFORE IT STOPPED IN 1990 OVERALL THE INVESTMENTS HAVE PERFORMED BADLY THOUGH THE REALESTATE PORTFOLIO GENERATED INCOME OF 96 IN THE FISCAL YEAR ENDED AUG 31 THE TOTAL RETURN INCLUDING DECLINES IN PROPERTY VALUES WAS ONLY 03 MORE TROUBLESOME ACCORDING TO THE ATTORNEY GENERAL'S REPORT THE SYSTEM'S REALESTATE OPERATIONS FOR YEARS WERE GUIDED BY A HANDFUL OF PEOPLE OPERATING LARGELY WITHOUT BOARD SUPERVISION A SITUATION THE REPORT SAID OPENED THE DOOR TO POSSIBLE CONFLICTS OF INTEREST AMONG ITS REALESTATE MANAGERS BORROWERS AND OUTSIDE ADVISERS THE REPORT FAULTED JOSEPH WAYNE PERRONE THE TEACHER RETIREMENT SYSTEM'S FORMER HEAD OF REAL ESTATE AND CHIEF INVESTMENT OFFICER AND OWEN REISCHMAN WHO SUCCEEDED HIM AS HEAD OF THE REALESTATE DIVISION FOR FAILING TO DISCLOSE BUSINESS RELATIONSHIPS WITH EACH OTHER AND WITH BORROWERS IN THE SYSTEM'S FIRST REALESTATE VENTURE THE REPORT FOUND MR PERRONE ARRANGED A 26 MILLION MORTGAGE LOAN TO A LIMITED PARTNERSHIP THAT INCLUDED MEMBERS OF AN AUSTIN LAW FIRM MCGINNIS LOCHRIDGE & KILGORE FAILING TO DISCLOSE THAT A MEMBER OF THE PARTNERSHIP ALSO WAS A PARTNER WITH MR PERRONE IN A STEEL VENTURE MR PERRONE ALSO HANDLED TALKS ON THREE RESTRUCTURINGS OF THE LOAN WHEN BORROWERS COULDN'T MAKE PAYMENTS THE REPORT ADDS THE SYSTEM EVENTUALLY TOOK OVER THE PROPERTY THE CAPITOL CENTER OFFICE TOWER IN AUSTIN NOW APPRAISED AT 105 MILLION MR PERRONE WAS FIRED IN 1990 MR REISCHMAN WAS DISMISSED AFTER THE REPORT WAS RELEASED BOTH MEN DENY ANY WRONGDOING THEY AND MCGINNIS LOCHRIDGE PREPARED WRITTEN REPLIES ON WHAT THEY SAY ARE INACCURACIES IN THE STUDY MR PERRONE CONCEDES THAT HE AND TWO MCGINNIS LOCHRIDGE PARTNERS HAPPENED TO BE SHAREHOLDERS IN A CORPORATION THAT OWNED A STEEL VENTURE AS THE ATTORNEY GENERAL'S REPORT STATED BUT HE ADDS TO INFER THAT THIS INCONSEQUENTIAL COINCIDENCE HAD ANY BEARING UPON THE LOAN COMMITMENT IS LUDICROUS HE ALSO SAID THE FUND'S ADVISERS HANDLED MOST OF THE NEGOTIATIONS ON RESTRUCTURING THE LOAN MR REISCHMAN IN HIS REPLY CONCLUDES THIS REPORT IS EXTREMELY DANGEROUS IN THAT IT IS REPLETE WITH INACCURACIES MISREPRESENTATIONS AND OUTRIGHT UNTRUTHS CURRENT FUND OFFICIALS NOW AWAITING THE FINDINGS OF THE SECOND MORE EXTENSIVE COOPERS & LYBRAND REVIEW WEREN'T FAULTED IN THE ATTORNEY GENERAL'S STUDY BUT THEY WERE CRITICIZED IN A REPORT LAST YEAR FROM THE STATE AUDITOR'S OFFICE FOR AMONG OTHER THINGS BIG INCREASES IN ADMINISTRATIVE SPENDING INCLUDING A 50 RISE IN PERRETIREE COSTS FROM 1987 TO 1991 THE BOARD TOOK OVER ALL LOAN DECISIONS IN 1991 IT HASN'T SINCE APPROVED A SINGLE NEW MORTGAGE OR DEBT RESTRUCTURING AND HAS REJECTED ONE LOAN PROPOSAL FROM ITS REALESTATE STAFF FOR A REGIONAL SHOPPING MALL OUTSIDE TEXAS THE TRUSTEES ARE MORE INTERESTED IN UNLOADING PROPERTIES TO THAT END THE FUND IS IN THE MIDDLE OF A 20 MILLION FACELIFT OF THE 816 CONGRESS BUILDING IN DOWNTOWN AUSTIN AND MS DOTTER IS COMPILING FILES ON THE SYSTEM'S PROPERTIES TO PREPARE FOR PRICING THEM SHE PLANS TO BEGIN PUTTING PROPERTIES ON THE BLOCK BY YEAR'S END AND SAYS INVESTORS ARE ALREADY CALLING PEOPLE ARE LICKING THEIR LIPS SHE SAYS IF THEY CAN GET A BARGAIN THEY'LL TAKE IT 9312270182 931227 LETTERS TO THE EDITOR SOCCER IN AMERICA I READ WITH GREAT INTEREST YOUR NOV 17 PAGEONE ARTICLE ABOUT AMERICAN SOCCER PLAYERS WHO RETREAT TO THE GREENER SOCCER PASTURES OF EUROPE YOU WROTE THAT IN THE US SOCCER MERITS ONLY A LOOSELY ORGANIZED SEMIPRO LEAGUE APPARENTLY I HAVE BEEN LABORING UNDER THE IMPRESSION THAT THE 10YEAROLD NATIONAL PROFESSIONAL SOCCER LEAGUE WITH ITS 12 TEAMS 192 PAID PLAYERS AND BROADCAST AGREEMENTS WITH ESPN AND ESPN2 WAS A CUT ABOVE SEMIPRO STATUS NEARLY 15 MILLION FANS ATTENDED OUR GAMES DURING THE 199293 SEASON THAT'S ALMOST 15 MILLION PEOPLE WHO RANK OUR BRAND OF PROFESSIONAL INDOOR SOCCER TO BE A TAD AHEAD OF DOG SLEDDING AND LOGROLLING ON THEIR LIST OF SPORTS TO WATCH 9312270181 931227 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG THURSDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT HUDSON BAY DIECASTING LTD 21 MILLION COMMON SHARES PRICED AT FOUR CANADIAN DOLLARS EACH US297 THROUGH UNDERWRITERS INCLUDING RESEARCH CAPITAL CORP AND MARLEAU LEMIRE SECURITIES INC LAMBERT COMMUNICATIONS INC INITIAL OFFERING OF 24 MILLION COMMON SHARES PRICED AT 6 EACH THROUGH UNDERWRITERS LED BY HANIFEN IMHOFF NEW WEST EYEWORKS INC INITIAL OFFERING OF 14 MILLION COMMON SHARES PRICED AT 7 EACH THROUGH UNDERWRITERS LED BY REICH & CO RAND A TECHNOLOGY INITIAL COMMONSHARE PUBLIC OFFERING OF 18 MILLION TREASURY SHARES AND 357709 SHARES OF SELLING SHAREHOLDERS AT C7 EACH THROUGH UNDERWRITERS INCLUDING MIDLAND WALWYN CAPITAL INC GORDON CAPITAL CORP MARLEAU LEMIRE SECURITIES INC AND POLAR SECURITIES INC TFC ENTERPRISES INC INITIAL OFFERING OF 45 MILLION COMMON SHARES PRICED AT 1150 EACH THROUGH UNDERWRITERS LED BY WHEAT FIRST BUTCHER & SINGER FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING SERIES 19948 IS BACKED BY THE AGENCY'S STRIPPED 30YEAR 8 MORTGAGE SECURITIES WITH 50 MILLION FROM STRIPPEDMORTGAGEBACKED TRUST 237 AND 50 MILLION FROM TRUST 251 9312270180 931227 BUSINESS BRIEF PETROLEUM HEAT & POWER CO INVESTMENT IN STAR GAS CORP IS COMPLETED FOR 30 STAKE PETROLEUM HEAT & POWER CO SAID IT COMPLETED ITS INVESTMENT VALUED AT 16 MILLION IN STAR GAS CORP IN EXCHANGE FOR AN INITIAL 30 EQUITY STAKE IN STAR PETROLEUM HEAT'S INVESTMENT IS IN THE FORM OF 8 PREFERRED STOCK CONVERTIBLE INTO 30 OF STAR'S EQUITY AS OF THE CLOSING THE STAMFORD CONN COMPANY'S STAKE IN STAR IS EXPECTED TO INCREASE TO 37 OVER THE NEXT TWO YEARS PETROLEUM HEAT'S INVESTMENT IS PART OF A RESTRUCTURING OF STAR THAT INCLUDES MORE THAN 9 MILLION IN INVESTMENT BY OTHER INVESTORS 9312270179 931227 IN NEVERLAND ELITE LAWYERS BATTLE OVER MICHAEL JACKSON SETTING BACK HIS CAUSE AMID SEXABUSE ALLEGATIONS THEY FIGHT FOR LIMELIGHT AND CONTROL OF SINGER A SQUABBLE A COUP AND LIZ BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD ADVISERS OF EMBATTLED POP SUPERSTAR MICHAEL JACKSON APPEAR TO HAVE ADDED TO THE SINGER'S WOES BY ENGAGING IN FIERCE INFIGHTING TO CONTROL THE HIGHPROFILE LEGAL CASE AS THE BATTLE HAS EBBED AND FLOWED DURING THE PAST SEVERAL MONTHS LAWYERS HAVE BEEN RETAINED OUSTED ELEVATED AND DEMOTED MR JACKSON'S CHIEF COUNSEL BERTRAM FIELDS AND PRIVATE INVESTIGATOR ANTHONY PELLICANO HAVE RESIGNED JOHNNIE L COCHRAN JR WAS ADDED TO THE GROUP AND HAS BECOME ONE OF ITS TOP GUNS IN THE WINGS LURKS MUSIC ATTORNEY JOHN G BRANCA ONCE DISMISSED FROM MR JACKSON'S TEAM BUT NOW INCREASINGLY INFLUENTIAL MR JACKSON'S WORRIES STEM FROM A 13YEAROLD BOY'S WIDELY REPORTED ACCUSATION THAT THE STAR SEXUALLY ABUSED HIM DURING SLEEPOVERS AT THE SINGER'S NEVERLAND VALLEY RANCH A CIVIL TRIAL IS PENDING AND POLICE IN LOS ANGELES AND SANTA BARBARA CALIF ARE CONDUCTING CRIMINAL INVESTIGATIONS THOUGH NO SUCH CHARGES HAVE BEEN FILED OSTENSIBLY THE LATEST SHAKEUP CAME BECAUSE LAWYERS HAD COMMITTED BLUNDERS DETRIMENTAL TO THEIR CLIENT BUT THE SHUFFLE ALSO REFLECTS THE LEGAL TEAM'S OVERALL PROBLEM IT ISN'T A TEAM EACH MEMBER WORKS FOR A SEPARATE LAW FIRM EACH IS A BIGNAME HOLLYWOOD PLAYER UNACCUSTOMED TO SHARING THE LIMELIGHT AND EACH HAS MUCH TO GAIN IN TERMS OF BOTH MONEY AND HOLLYWOOD PRESTIGE FROM THE JACKSON CASE AND MORE BROADLY FROM CONTROL OF HIS MUSICRELATED LEGAL WORK MOREOVER SOME OF MR JACKSON'S FRIENDS SAY HE IS NEITHER A BUSINESSMAN NOR EMOTIONALLY EQUIPPED TO TAKE CONTROL OF HIS LEGAL AFFAIRS HE HAS BEEN OUT OF TOUCH BECAUSE OF HIS RECENT ADDICTION TO PRESCRIPTION PAINKILLERS HIS FRIENDS MAINTAIN SO THERE HAS BEEN NO ONE TO DEMAND AN END TO THE SQUABBLING WHEN MICHAEL WAS AWAY AND UNREACHABLE THERE REALLY WASN'T ANYBODY IN CONTROL SAYS HIS MANAGER SANDY GALLIN SO EVERYBODY JUST DID THE BEST THAT THEY COULD DISSENSION WITHIN THE JACKSON CAMP REALLY SPUN OUT OF CONTROL ON NOV 12 AFTER MR FIELDS TOLD A NEWS CONFERENCE MR JACKSON WAS CANCELING THE REMAINING DATES OF A WORLD TOUR TO GO INTO DRUG REHABILITATION HE'S NOT IN A POSITION TO COOPERATE WITH HIS ATTORNEYS IN PREPARING HIS DEFENSE MR FIELDS TOLD THE 50ODD REPORTERS WHO WERE SHOUTING QUESTIONS AT HIM HE WAS BARELY ABLE TO FUNCTION ADEQUATELY ON AN INTELLECTUAL BASIS MR FIELDS'S COMMENTS SET OFF WORRIES AMONG MR JACKSON'S ADVISERS THAT IT WAS A MISTAKE TO PORTRAY HIM AS INCOMPETENT MR BRANCA WENT SO FAR AS TO CLIP A HOLLYWOOD REPORTER STORY ON THE NEWS CONFERENCE ATTACH A NOTE QUESTIONING MR FIELDS'S APPROACH AND SEND IT TO MR JACKSON'S LEGAL AND MANAGEMENT TEAMS THEN ON NOV 23 MR FIELDS BECAME THE CENTER OF CONTROVERSY AGAIN WHEN HE TOLD A CALIFORNIA JUDGE HENCE THE WORLD THAT A CRIMINAL INDICTMENT AGAINST MR JACKSON WAS IMMINENT ALMOST IMMEDIATELY ANOTHER HIGHPOWERED JACKSON ATTORNEY HOWARD L WEITZMAN TOLD A HORDE OF REPORTERS AT AN IMPROMPTU PRESS CONFERENCE ON THE COURTHOUSE LAWN THAT MR FIELDS MISSPOKE HIMSELF MR FIELDS HAD A TACTICAL REASON FOR HIS STATEMENT HE WAS TRYING TO GET A DELAY IN THE BOY'S CIVIL LAWSUIT AGAINST MR JACKSON SCHEDULED FOR THE SPRING BY CLAIMING THERE WAS AN IMMINENT CRIMINAL CASE THAT SHOULD BE TRIED FIRST BUT AS MR JACKSON'S CRIMINAL LAWYER MR WEITZMAN HAD A DIFFERENT STRATEGY ASSERT MR JACKSON'S INNOCENCE MINIMIZE TALK ABOUT CRIMINAL PROBES THE ENSUING BEHINDTHESCENES SQUABBLE RESULTED IN A COUP ON DEC 3 MR FIELDS RECEIVED A LETTER SIGNED BY MR JACKSON BUT INSPIRED BY MR BRANCA AND OTHERS OUSTING HIM AS CHIEF OF THE CIVIL CASE TEN DAYS LATER UNDER INTENSE PRESSURE FROM THE REST OF THE JACKSON CAMP MR FIELDS RESIGNED AS GENERAL COUNSEL IN MR JACKSON'S LEGAL NEVERLAND HIDDEN WAR HAS BEEN WAGED ON SUCH BATTLEFIELDS AS HOTEL ROOMS IN MEXICO CITY HIDEAWAYS IN SWITZERLAND AND TRANSCONTINENTAL PHONE LINES THE BEST WEAPON USUALLY HAS PROVED TO BE ACCESS TO THE RECLUSIVE STAR HIMSELF AND TO THE CLOSE FRIENDS SUCH AS ACTRESS ELIZABETH TAYLOR WHO INFLUENCE HIS THINKING THE PRIZE OF COURSE IS MR JACKSON THE ABILITY TO CONTROL THE 35YEAROLD ENTERTAINER'S LEGAL WORK TRANSLATES INTO ROUGHLY 3 MILLION A YEAR IN FEES AND THE KIND OF INSTANT PRESTIGE THAT SOMETIMES SEEMS TO MEAN EVERYTHING IN HOLLYWOOD FOR MR JACKSON THE FINANCIAL STAKES RUN MUCH HIGHER THAN THE 20 MILLION DEMANDED IN THE CIVIL SUIT HE IS A ONEMAN ENTERTAINMENT CONGLOMERATE AND THE VALUE OF HIS ASSETS COULD PLUNGE IF HE DOESN'T WEATHER THE CONTROVERSY IT MAY BE TOO LATE TO UNDO THE DAMAGE COMPLETELY EVEN IF HE PREVAILS IN THE LITIGATION MR JACKSON'S BUSINESS DEPENDS ON THE UNWAVERING LOYALTY OF HIS FANS A POLL PUBLISHED BY ENTERTAINMENT WEEKLY MAGAZINE SHOWED THAT 75 OF THE RESPONDENTS THOUGHT THAT MR JACKSON'S REPUTATION AND CAREER WOULD BE DAMAGED EVEN IF THE ALLEGATIONS TURNED OUT TO BE FALSE MR JACKSON'S FORTUNES WEREN'T SUPPOSED TO TAKE THIS KIND OF TURN THE SINGER ONCE CONFIDED TO ENTERTAINMENT MOGUL DAVID GEFFEN THAT HE WAS AFRAID OF ENDING UP LIKE BOXER JOE LOUIS GREETING GAMBLERS AT A LAS VEGAS CASINO TO MAKE ENDS MEET MR GEFFEN IN THE EARLY 1980S SET UP AN INFORMAL BOARD OF DIRECTORS TO OVERSEE MR JACKSON'S BUDDING BUSINESS EMPIRE AMONG THOSE SITTING ON THE BOARD WERE MR GEFFEN JOHN JOHNSON CHAIRMAN OF JOHNSON PUBLISHING WHICH PUTS OUT EBONY MAGAZINE AND MR BRANCA'S ENTERTAINMENT LAW FIRM ZIFFREN BRITTENHAM & BRANCA MR JACKSON'S ADVISORY BOARD MESSRS GEFFEN AND JOHNSON WEREN'T PAID WE DID IT BECAUSE MICHAEL IS VERY TALENTED AND WE FELT A NATIONAL TREASURE AND WE WANTED TO PROTECT HIM MR GEFFEN EXPLAINS THE BOARD APPROVED ALL OF MR JACKSON'S MAJOR DEALS BY 1990 HOWEVER MR GEFFEN WANTED TO MOVE ON MR JOHNSON WAS SET TO LEAVE AS WELL MR GEFFEN'S CHIEF PLAN BEFORE TURNING OVER THE REINS OF THE JACKSON EMPIRE WAS TO FIRE JOHN BRANCA MR JACKSON'S LONGTIME ATTORNEY MR BRANCA HAD REPRESENTED AND HELPED MANAGE MR JACKSON'S CAREER FOR MANY YEARS AND MR JACKSON AT TIMES HAD ACCOUNTED FOR 25 OF HIS WORK THE SHAGGYHAIRED LAWYER'S RELATIONSHIP WITH THE SINGER WAS FAR FROM TRADITIONAL WHEN HE WASN'T MAKING DEALS MR BRANCA ACCOMPANIED HIS CLIENT ON VISITS TO DISNEYLAND AND ON SHOPPING JAUNTS TO AS FAR OFF AS HONG KONG AFTER MR BRANCA NEGOTIATED A HUGE MUSICPUBLISHING DEAL THE ENTERTAINER PRESENTED HIM WITH A ROLLSROYCE BUT ACCORDING TO SEVERAL JACKSON ADVISERS MR GEFFEN DIDN'T TRUST THE LAWYER AS MUCH AS THE SINGER DID INDEED MR GEFFEN PREVAILED UPON THE SINGER TO FIRE MR BRANCA IN 1990 THE LAW FIRM ZIFFREN BRITTENHAM DIDN'T GO QUIETLY WHEN PARTNER KENNETH ZIFFREN BEGGED MR GEFFEN TO RECONSIDER MR JACKSON BEGAN TO WEEP ACCORDING TO PEOPLE FAMILIAR WITH THE MEETING AT THE END OF THE DISCUSSION THE SINGER SURREPTITIOUSLY PRESSED A NOTE INTO THE HAND OF ANOTHER LAWYER FROM THE FIRM TELL JOHN BRANCA AND KAREN A PARALEGAL I'M SORRY AND I LOVE THEM IT READ THAT'S WHEN MR GEFFEN RECOMMENDED MR JACKSON RETAIN BERTRAM FIELDS TO OVERSEE THE LEGAL WORK A WELLKNOWN MOVIEINDUSTRY FIGURE WITH A BUTTONEDDOWN IVY LEAGUE IMAGE MR FIELDS WAS MORE ACCUSTOMED TO REPRESENTING THE LIKES OF WARREN BEATTY AND DUSTIN HOFFMAN THAN MUSICINDUSTRY SUPERSTARS MR JACKSON'S POSTGEFFEN EXECUTIVE TEAM ALSO INCLUDED PERSONAL MANAGER SANDY GALLIN ONE OF MR GEFFEN'S CLOSE FRIENDS MR BRANCA DIDN'T TAKE KINDLY TO DEFEAT EVEN THOUGH HE SPOKE ONLY RARELY WITH HIS FORMER CLIENT HE KEPT CLOSE TABS ON THE JACKSON CAMP HE POUNCED DURING A LUNCH LAST SUMMER WITH MR GALLIN AT LE DOME A CHIC WEST HOLLYWOOD RESTAURANT THEY DISCUSSED A VARIETY OF TOPICS BUT OVER COFFEE TALK TURNED TO MICHAEL JACKSON MR BRANCA LAUNCHED INTO AN ATTACK OF MR JACKSON'S CONTRACT WITH SONY CORP WORTH AT LEAST 60 MILLION THOUGH IT HAD BEEN TRUMPETED IN 1991 AS THE RICHEST DEAL OF ITS KIND FOR AN ENTERTAINER MR BRANCA CONTENDED THAT THE COMPLEX DEAL WASN'T RICH ENOUGH IN AN UNUSUALLY AGGRESSIVE CRITIQUE OF OTHER LAWYERS' WORK MR BRANCA TOLD MR GALLIN THAT HE THOUGHT HE COULD NEGOTIATE A HIGHER SHAREPERRECORD SALE FOR MR JACKSON THAN HAD MR FIELDS AND ANOTHER ATTORNEY MR GALLIN SAYS HE PASSED THIS INFORMATION ON TO MR JACKSON'S OTHER ADVISERS IT EVIDENTLY STRUCK A CHORD WITH MR JACKSON A FEW DAYS LATER WHILE AT HIS GYM MR BRANCA GOT A CALL FROM THE SINGER ASKING HIM TO REJOIN THE TEAM ALTHOUGH IN AN UNSPECIFIED ROLE MR JACKSON SOON BEGAN REFERRING TO MR BRANCA'S RETURN AS THE SECOND COMING ACCORDING TO A PERSON CLOSE TO THE SINGER WHILE ON TOUR LAST FALL MR JACKSON HAD A LOT OF OTHER THINGS TO WORRY ABOUT THE FATHER OF A TEENAGER ACCUSED MR JACKSON OF FONDLING AND ENGAGING IN ORAL SEX WITH THE BOY MR FIELDS WHO WAS IN CHARGE OF ALL OF THE ENTERTAINER'S LEGAL AFFAIRS BROUGHT IN MR PELLICANO TO INVESTIGATE THE PRIVATE INVESTIGATOR ACCUSED THE FATHER A DENTIST AND BUDDING SCREENWRITER OF TRYING TO EXTORT A 20 MILLION MOVIE DEAL FROM MR JACKSON MR JACKSON KEPT PROTESTING HIS INNOCENCE VIA HIS ADVISERS BUT THE ONSLAUGHT OF NEGATIVE PUBLICITY CONTINUED AS THE STRESS ESCALATED MR JACKSON INCREASINGLY RELIED ON PRESCRIPTION PAINKILLERS HIS ASSOCIATES SAY MEANWHILE MR BRANCA LAUNCHED A NEW ASSAULT INTO MR FIELDS'S TERRITORY THE IMMEDIATE EFFECT ERODED MR FIELDS'S POWER OVER THE SINGER'S BUSINESS AFFAIRS BUT ULTIMATELY IT ALSO WEAKENED MR FIELDS'S LEADERSHIP OF THE ENTIRE LEGAL TEAM AND CREATED A POWER VACUUM IN THE JACKSON CAMP JUST AT A TIME WHEN THE SUPERSTAR URGENTLY NEEDED SOMEONE TO TAKE CHARGE THE FIRST DIRECT VICTIM OF THE BRANCA SALVO WAS ATTORNEY L LEE PHILLIPS WHO COUNTS BARBRA STREISAND AMONG HIS CLIENTS MR PHILLIPS HAD BEEN RETAINED BY MR FIELDS TO HANDLE LEGAL WORK IN CONNECTION WITH MR JACKSON'S MUSICPUBLISHING CATALOG IN THE EARLY FALL MR PHILLIPS RECEIVED A ONEPAGE DISMISSAL FROM MR JACKSON THE LAWYER CALLED MR FIELDS WHO KNEW NOTHING ABOUT IT MR BRANCA IT TURNED OUT HAD GIVEN THE THUMBS DOWN ON MR PHILLIPS MR BRANCA FILLED MR PHILLIPS'S ROLE HIMSELF AND NEGOTIATED A NEW DEAL WITH EMI MUSIC A DIVISION OF THORN EMI PLC TO ADMINISTER THE PUBLISHING CATALOG THE AGREEMENT IS WORTH AT LEAST 100 MILLION TO MR JACKSON THE NEXT CASUALTY WAS MR JACKSON'S BUSINESSMANAGEMENT FIRM WHICH ALSO RECEIVED A SHORT LETTER SIGNED BY MR JACKSON AGAIN MR FIELDS HADN'T BEEN CONSULTED I HAD NO PRIOR WARNING MR FIELDS SAYS HAD I KNOWN ABOUT IT I WOULD HAVE TRIED TO AVOID IT NONETHELESS UNTIL LATE OCTOBER MR FIELDS REMAINED IN CONTROL OF SCANDAL LITIGATION HE HAD TAKEN CHARGE OF THE CIVIL SUIT FILED ON BEHALF OF THE DENTIST'S SON AND HAD HIRED LITIGATOR HOWARD WEITZMAN TO OVERSEE THE JACKSON CAMP'S RESPONSE TO THE CRIMINAL INQUIRIES IN CALIFORNIA BUT IN LATE OCTOBER AND EARLY NOVEMBER MR FIELDS WAS FORCED TO FIGHT TO MAINTAIN HIS PREEMINENT ROLE AFTER MR JACKSON HEARD FROM A STREAM OF WORRIED ADVISERS MANY OF THEM HAD QUALMS ABOUT HOW MR FIELDS WAS DOING HIS JOB ESPECIALLY HOW HE WAS HANDLING THE PRESS CHIEF AMONG THEIR CONCERNS WAS MR FIELDS'S ASSIGNMENT OF MR PELLICANO TO BE THE TEAM'S PRINCIPAL LEGAL SPOKESMAN MR PELLICANO HAD SHOCKED SOME JACKSON SUPPORTERS BY OFFERING UP TO THE PRESS TWO BOYS WHO SAID THEY HAD SLEPT WITH MR JACKSON BUT HADN'T BEEN MOLESTED THE BOYS' STORY UNDERSCORED PUBLIC PERCEPTIONS THAT MR JACKSON WAS OVERLY ATTACHED TO CHILDREN MR PELLICANO IS A VERY GOOD PRIVATE INVESTIGATOR MR GALLIN SAYS BUT I THINK THAT EVERYONE INVOLVED ON MICHAEL'S TEAM WAS TALKING TO THE PRESS TOO MUCH AND WAS OUT THERE TOO MUCH MR JACKSON'S MANAGER MR GALLIN AND HIS CLOSE FRIEND MS TAYLOR WERE SO CONCERNED ABOUT MR PELLICANO'S PRESS ROLE THAT THEY FINALLY DECIDED TO CONFRONT MR JACKSON ABOUT IT DURING A DISCUSSION OF THE PROBLEM WITH MR WEITZMAN AT MS TAYLOR'S HOME THEY PUT IN A PHONE CALL TO THE SINGER WHO WAS STILL ABROAD ON TOUR ACCORDING TO A PERSON FAMILIAR WITH THE CONVERSATION THE TWO ADVISERS ON SEPARATE PHONE EXTENSIONS TOLD MR JACKSON THAT THEY WERE UNHAPPY WITH MR PELLICANO'S PRESS STRATEGY MR JACKSON THEN AGREED TO DESIGNATE MR WEITZMAN WHO HAD VAST EXPERIENCE IN HIGHPROFILE CRIMINAL CASES AS THE PRESS SPOKESMAN DIVISIONS OVER MR FIELDS'S ROLE CAME TO A HEAD WHEN THE SUPERSTAR'S TOUR TOOK HIM TO MEXICO CITY ON OCT 24 A STREAM OF ADVISERS FROM LOS ANGELES CAME DOWN TO SEE MR JACKSON AND A SHOUTING MATCH ERUPTED IN HIS HOTEL ROOM BETWEEN MR FIELDS AND BILL BRAY THE PERFORMER'S LONGTIME BODYGUARD MR BRAY ROUNDLY ATTACKED MR FIELDS'S MANAGEMENT OF THE CASE INCLUDING HIS USE OF MR PELLICANO AND THEREBY BECAME A DE FACTO MEMBER OF THE BRANCA FACTION MR BRAY DIDN'T RETURN PHONE CALLS SEEKING COMMENT MR BRAY AND OTHERS INCLUDING MR BRANCA DECIDED THAT THE BEST WAY AROUND MR FIELDS WAS TO ADD JOHNNIE COCHRAN TO THE LEGAL TEAM MR COCHRAN WAS WELL RESPECTED IN LOS ANGELES'S BLACK AND LEGAL COMMUNITIES IN PART FOR HIS HANDLING OF CASES INVOLVING POLICE IMPROPRIETIES THE HIRING INITIALLY WAS STYMIED BY MS TAYLOR WHO HAD FLOWN TO MEXICO CITY TO HELP DEAL WITH HER FRIEND'S DRUG PROBLEM SHE ARGUED THAT MR JACKSON SHOULDN'T BE MAKING DECISIONS WHILE HOOKED ON DRUGS SHE ALSO FELT THAT HER LAWYER SHOULD BE PART OF THE TEAM ACCORDING TO MR GALLIN HER ATTORNEY NEIL PAPIANO BECAME A LIAISON BETWEEN THE LITIGATION TEAM AND MS TAYLOR SAYS MR WEITZMAN AND IT WAS WITH THEIR APPROVAL THAT MR COCHRAN EVENTUALLY WAS RETAINED MS TAYLOR COULDN'T BE REACHED FOR COMMENT BUT MR FIELDS'S COURTHOUSE COMMENTS ON NOV 23 DROVE MS TAYLOR MR BRAY AND MR BRANCA TO BEGIN THEIR ULTIMATELY SUCCESSFUL CAMPAIGN TO REMOVE HIM AS CHIEF OF THE CIVILLITIGATION TEAM WE WERE SAYING THAT WITH SOME OF THESE BLUNDERS WE WERE GETTING CONCERNED AND THAT MAYBE SOMEONE USED TO DEALING WITH THE PRESS OUGHT TO DEAL WITH IT ONE JACKSON ASSOCIATE SAYS MR FIELDS'S ALLIES SAY THAT HE HAD BEEN MISLED BY MR WEITZMAN INTO BELIEVING THAT AN INDICTMENT HAD IN FACT BEEN IMMINENT A CHARGE MR WEITZMAN DENIES BY MIDDECEMBER WITH MR FIELDS FINALLY OUT OF THE PICTURE MESSRS COCHRAN AND WEITZMAN WERE APPEARING TOGETHER IN COURT ON BEHALF OF MR JACKSON BUT NOW MR COCHRAN WAS DOING MOST OF THE TALKING AFTER MR JACKSON'S TELEVISED PLEA LAST WEEK ASKING FANS TO HEAR THE TRUTH BEFORE YOU LABEL OR CONDEMN ME THE DUO MADE THE ROUNDS OF NATIONALTELEVISION SHOWS WHAT HAPPENS NEXT MR GALLIN REPORTS THAT MR JACKSON WHO DIDN'T COMMENT FOR THIS ARTICLE IS NOW FANTASTICALLY CLEARTHINKING AND READY TO MAKE HIS OWN DECISIONS BUT MR GALLIN SAYS HE IS UNSURE WHETHER MR JACKSON'S ULTIMATE LEGAL TEAM HAS FINALLY SUITED UP SAYS MR GALLIN I DON'T HAVE A CRYSTAL BALL 9312270177 931227 POLITICS & POLICY DESPITE VICTORIES CLINTON MUST CONVINCE PUBLIC OF POLITICAL AND PERSONAL STABILITY EXPERTS SAY BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON HAS WON SOME IMPRESSIVE LEGISLATIVE VICTORIES BUT STILL MUST ASSUAGE AMERICANS LOOKING FOR BOTH POLITICAL AND PERSONAL STABILITY IN A PRESIDENT THE WALL STREET JOURNAL'S PANEL OF POLITICAL EXPERTS SAYS THERE'S NO QUESTION THE PANELISTS AGREE THAT THE POLITICAL VICTORIES ARE REAL BUT REPUBLICAN STRATEGIST JOHN SEARS ARGUES THAT MR CLINTON MUST LEARN NOT TO PROMISE SO MUCH WHEN HE IS SEEKING VOTES AND ISN'T SURE MR CLINTON WILL EVER FIND A WAY TO GOVERN EFFECTIVELY AND EFFICIENTLY THIS PRESIDENT ISN'T THERE YET HE SAYS HE MAY NEVER GET THERE BECAUSE THERE ARE CERTAIN VIBRATIONS PEOPLE GET OUT OF HIS PERSONALITY THAT STILL MAKE THEM UNSURE ABOUT HIM THE LATEST WAVE OF STORIES ABOUT THE PRESIDENT'S PERSONAL LIFE AND BUSINESS DEALINGS IN ARKANSAS WHAT FELLOW PANELIST AND GOP THEORETICIAN KEVIN PHILLIPS REFERS TO AS THE DOGPATCH STUFF THAT KEEPS COMING BACK JUST PLAYS OFF THOSE UNCERTAINTIES MR SEARS SAYS THE AMERICAN PEOPLE ARE GENERALLY VERY FORGIVING ABOUT WHAT HAPPENED IN THE PAST AS LONG AS YOU DON'T LIE ABOUT IT HE SAYS MR CLINTON NEEDS TO BE CAREFUL HERE THIS LOOKS FISHY BUT PANELIST CELINDA LAKE A DEMOCRATIC POLLSTER DOUBTS ANY SERIOUS LONGTERM IMPACT I DON'T THINK PEOPLE ARE PAYING THAT MUCH ATTENTION SHE SAYS THERE'S NOTHING IN THIS THEY HAVEN'T PROCESSED EARLIER WHEN THEY DIDN'T KNOW THIS GUY THE PANELISTS CONFESS THEY HAD UNDERESTIMATED THE BENEFITS FOR MR CLINTON OF PASSING THE NORTH AMERICAN FREE TRADE AGREEMENT WHEN WE LAST DISCUSSED THAT HERE SAYS MR SEARS EVERYBODY ASSUMED IT WAS A LOSER WHICHEVER WAY IT WENT INSTEAD IT TURNED OUT TO BE A VICTORY FOR HIM NAFTA PROVED HE HAD THE COURAGE OF HIS CONVICTIONS ON A TOUGH ISSUE SAYS DEMOCRATIC CONSULTANT GREG SCHNEIDERS WHO HAS LONG BEEN SKEPTICAL OF MR CLINTON'S POTENTIAL AS HIS PARTY'S LEADER THAT NOT ONLY HELPED HIM WITH THE PUBLIC IT HELPED HIM WITH WASHINGTON INSIDERS THEY WILL NOW BE LESS INCLINED TO BASH HIM ON THESE POINTS IT MEANS HE CAN BUILD ON THAT THE GOOD NEWS IS THAT VOTERS HAVE NOW CONCLUDED THAT CLINTON IS EFFECTIVE SAYS MS LAKE THAT'S VERY IMPORTANT BUT MR PHILLIPS POINTS TO POSSIBLE PERIL TOO UNDERNEATH THE SUCCESS PATTERN HE SAYS WHAT YOU'VE GOT IS SOMEBODY WHO'S BECOME THE FIRST INTERESTGROUP CENTRIST PRESIDENT IN AMERICAN HISTORY HE'S BASICALLY PUT TOGETHER ANY SUCCESS HE HAS ACHIEVED BY THROWING IN AND DEALING VERY HEAVILY WITH INTEREST GROUPS THAT'S FINE AS LONG AS IT WORKS BUT IF THINGS DON'T WORK THEN YOU'RE VERY VULNERABLE BECAUSE THAT THE CRITICAL ROLE OF THE SPECIALINTEREST GROUPS IS PART OF WHAT PEOPLE ARE AGAINST MS LAKE ISN'T EVEN SURE MR CLINTON FULLY UNDERSTANDS THE LESSON OF HIS NAFTA VICTORY FOCUS IS WHAT PRODUCES WINNING SHE SAYS I HOPE HE'S LEARNED THAT BUT I'M AFRAID HE HASN'T SHE POINTS TO TWO COMPETING INSTINCTS THAT DRIVE MR CLINTON ONE IS HIS ENORMOUS CAPACITY TO UNDERSTAND COMPLICATED POLICY QUESTIONS THE OTHER IS HIS VERY SMART POLITICAL SENSE ABOUT HOW TO MOVE VOTERS I THINK THEY WORK AGAINST EACH OTHER AND THAT'S WHAT PRODUCES THESE UPS AND DOWNS THE PANELISTS SAY MR CLINTON WILL NEED ALL THE HELP HE CAN GET TO PASS HIS HEALTHCARE PACKAGE BUT THEY ALL SAY THEY HAVE NO DOUBT CONGRESS WILL PASS SOMETHING BEFORE VOTERS GO TO THE POLLS NEXT NOVEMBER I GUARANTEE IT SAYS MS LAKE OR WE'LL SEE A WHOLE NEW CONGRESS MR PHILLIPS SEES A CHANCE THAT THE PRESIDENT MAY HAVE TO BUY OFF SO MANY SPECIALINTEREST GROUPS THAT HE WILL END UP WITH SOMETHING THAT LOOKS LIKE ONE OF THOSE CRAZY RUBE GOLDBERG MACHINES THE PANELISTS ALSO BELIEVE THAT AS MR CLINTON MOVES TO CARRY OUT HIS DOMESTIC AGENDA THERE'S A STRONG CHANCE HE WILL BE BLINDSIDED BY INTERNATIONAL CRISES MR PHILLIPS GOES SO FAR AS TO SAY THAT THE LIKELIHOOD OF WAR IN THE NEXT FEW YEARS A SERIOUS REGIONAL WAR IN WHICH THE US MIGHT OR MIGHT NOT BECOME ENGAGED IS UP BY AS MUCH AS 300 TO 400 OVER WHAT IT WAS A FEW YEARS AGO THE PROBLEM HE SAYS IS THAT MR CLINTON'S NATIONALSECURITY TEAM IS NOT EXACTLY LOOKING LIKE THE A TEAM MS LAKE WORRIES ABOUT THE ADMINISTRATION'S FOREIGNPOLICY CREDENTIALS TOO I'M SURPRISED SHE SAYS AT HOW MUCH THEY'RE HANGING THEIR HAT ON BORIS YELTSIN HE'S STRIKINGLY UNPOPULAR IN RUSSIA HE'S IN EXTRAORDINARILY PRECARIOUS SHAPE ANYBODY WHO HAS BEEN TO RUSSIA RECENTLY SAYS MR SEARS WHO HAS JUST RETURNED FROM A BUSINESS TRIP THERE KNOWS THAT YELTSIN IS VERY UNPOPULAR IF I CAN GO TO RUSSIA AND FIGURE OUT THAT THE PEOPLE DON'T LIKE YELTSIN TODAY CERTAINLY OUR STATE DEPARTMENT SHOULDN'T HAVE BEEN SURPRISED AS MUCH AS THEY SEEMED TO BE THAT THERE MIGHT BE AN ODD OUTCOME IN THE ELECTION MS LAKE SAYS SHE FEARS MR CLINTON AND HIS ADMINISTRATION MAY BE OVERLY IMPRESSED BY THE DEGREE TO WHICH BUSINESS PEOPLE AND BABY BOOMERS ARE CONCERNED ABOUT INTERNATIONAL DEVELOPMENTS WHAT THEY'RE NOT PROCESSING IS THE FACT THE AMERICAN PUBLIC HAS NOT GOTTEN ANY MORE GLOBAL IN ITS THINKING IF ANYTHING THEY ARE NOW LESS GLOBAL WE'RE GOING TO STAY HOME THEY SAY THEY DON'T WANT TO SEND TROOPS ANYWHERE THE PANELISTS CONTINUE TO BELIEVE THAT BILLIONAIRE ROSS PEROT REMAINS POTENTIALLY AN IMPORTANT POLITICAL FORCE BUT THEY SAY HIS INVOLVEMENT IN THE ANTINAFTA MOVEMENT AND HIS REPORTED PLANS TO TAKE ON THE ADMINISTRATION OVER HEALTH CARE HAVE TAKEN HIM AWAY FROM THE POLITICALREFORM THEMES THAT PROPELLED HIM TO PROMINENCE IN THE FIRST PLACE HE'S GOT TO GO BACK TO HIS ANTIWASHINGTON STUFF SAYS MR PHILLIPS THAT'S WHERE THE GAME IS HE OUGHT TO JUST STICK WITH THE SPECIAL INTERESTS AND LET THE REST OF IT GO SAYS MR SEARS HE'S MAKING A HUGE MISTAKE SAYS MS LAKE HE HAS MINIMAL CREDIBILITY WITH THE VOTERS ON HEALTH CARE THEY THINK BUSINESS PEOPLE DELIVER BAD HEALTH CARE 9312270176 931227 PEPPERAND SALT AND THEN PROCEED TO DRESS HIM THIS THOUGHT ONE CAN'T IGNORE THAT HE WAS DRESSED BEFORE COMPUTER VIRUS TERMINAL ILLNESS 9312270175 931227 ABREAST OF THE MARKET INVESTMENT TIP FOR '94 FOLLOW THAT TAKEOVER BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FORGET GROWTH FORGET VALUE THE BUZZWORD FOR 1994 WILL BE TAKEOVERS THE STOCK MARKET IS GOING TO BE LED BY TAKEOVER ACTIVITY NEXT YEAR PREDICTS EDWARD KERSCHNER STOCK STRATEGIST AT PAINEWEBBER IF RESTRUCTURINGS GETTING RID OF WORKERS AND PLANTS WAS THE STORY OF 1993 THEN ACQUISITIONS WILL BE THE STORY OF 1994 INSTEAD OF HUNTING FOR STOCKS THAT FIT INTO TRADITIONAL INVESTMENT DISCIPLINES SUCH AS GROWTH AND VALUE MR KERSCHNER SUGGESTS THAT INVESTORS TAKE A MORE ECLECTIC APPROACH NEXT YEAR SELECTING STOCKS WITH SOMETIMESDIFFERING INVESTMENT OBJECTIVES BUT WITH ONE COMMON CHARACTERISTIC STRONG TAKEOVER POTENTIAL WHY TAKEOVERS MR KERSCHNER ARGUES THAT UNTIL NOW CORPORATE AMERICA HAS RESPONDED TO THE PROLONGED PERIOD OF DISINFLATION AND SLUGGISH ECONOMIC GROWTH BY SHUTTERING UNPROFITABLE PLANTS AND LAYING OFF WORKERS SUCH STEPS HAVE YIELDED HANDSOME REWARDS FOR INVESTORS AS INDUSTRIAL COMPANIES HAVE MANAGED TO POST DOUBLEDIGIT PROFIT GAINS IN SPITE OF WEAK SALES GROWTH WHAT'S MORE STOCKS OF MANY RESTRUCTURING STORIES SUCH AS SEARS ROEBUCK EASTMAN KODAK AND GENERAL MOTORS HAVE ROCKETED AS INVESTORS BET THAT THE MOVES WILL FURTHER ENHANCE PROFITABILITY NOW WITH MANY BUSINESSES HAVING CUT COSTS AS FAR AS THEY CAN COMPANIES ARE LOOKING FOR NEW WAYS TO BOOST TOPLINE GROWTH ESPECIALLY IN AN ECONOMY THAT IS EXPANDING ONLY MODESTLY THE ANSWER AS COMPANIES SUCH AS AMERICAN TELEPHONE & TELEGRAPH AND BELL ATLANTIC ARE STARTING TO DISCOVER MAY BE STRATEGIC ACQUISITIONS SUCH ACQUISITIONS BOOST REVENUE AND BOLSTER BOTTOM LINES AS COMPANIES BENEFIT FROM ECONOMIES OF SCALE AND FURTHER COSTCUTTING SAYS MR KERSCHNER ALREADY AFTER A THREEYEAR DROUGHT THE MERGER BUSINESS IS BUBBLING AGAIN 6025 DEALS VALUED AT 2652 BILLION WERE ANNOUNCED OR COMPLETED THIS YEAR AS OF DEC 14 THAT'S UP FROM 5551 DEALS VALUED AT 1527 BILLION FOR ALL OF LAST YEAR ACCORDING TO SECURITIES DATA MOST OF THE ACQUISITIONS THAT TOOK PLACE THIS YEAR WERE OF THE STRATEGIC TYPE THAT MR KERSCHNER ENVISIONS TAKE MERCK THE DRUG INDUSTRY POWERHOUSE EARLIER THIS YEAR THE WHITEHOUSE STATION NJ CONCERN ACQUIRED MEDCO CONTAINMENT IN AN EFFORT TO EXPAND ITS PRODUCT DISTRIBUTION NETWORK INVESTORS WHO SAW THE ACQUISITION COMING REAPED BIG REWARDS WHEN MEDCO'S STOCK JUMPED 34 IN THE MONTHS FOLLOWING THE ANNOUNCEMENT SIMILARLY BELL ATLANTIC WENT AFTER TELECOMMUNICATIONS INC IN A BID TO GET INTO THE CABLETELEVISION BUSINESS WITH WHAT ARGUABLY IS THE MOST POWERFUL FORCE IN TELEVISION ON THE DAY OF THE ANNOUNCEMENT TCI SHOT UP 106 THOUGH IT HAS SINCE SLIPPED IN PRICE AND PARAMOUNT COMMUNICATIONS HAS RALLIED SINCE IT BECAME THE SUBJECT OF A TAKEOVER BATTLE BETWEEN VIACOM AND QVC NETWORK MR KERSCHNER BELIEVES THAT THE PACE OF STRATEGIC ACQUISITIONS WILL ACCELERATE NEXT YEAR AS LOW INTEREST RATES AND AN EXPANDING ECONOMY EMBOLDEN MORE COMPANIES TO HIT THE ACQUISITION TRAIL MOST OF THE CONSOLIDATIONS HE BELIEVES WILL OCCUR IN INDUSTRIES THAT ARE PLAGUED BY OVERCAPACITY BANKS WHICH WANT TO EXPAND THEIR BRANCH SYSTEMS AND THEIR ARRAY OF PRODUCTS WILL ACQUIRE OTHER BANKS FACED WITH THE ENORMOUS COSTS OF BUILDING UP NEW BRAND NAMES CONSUMERPRODUCT COMPANIES WILL WIND UP BUYING BRANDNAME COMPANIES AS A CHEAPER ALTERNATIVE FOR INVESTORS WHO WANT TO PLAY THE TAKEOVER THEME MR KERSCHNER SUGGESTS THEY PURSUE AN ICING ON THE CAKE STRATEGY THAT IS PURCHASING SHARES OF COMPANIES THAT ARE GOOD INVESTMENTS IN THEIR OWN RIGHT AND WHERE TAKEOVER POSSIBILITIES ARE JUST AN ADDED ATTRACTION IN THE BANK GROUP FOR INSTANCE BAYBANKS FIRST AMERICAN AND SHAWMUT NATIONAL ARE EXCELLENT INVESTMENT CANDIDATES BECAUSE THEY HAVE SOLID REGIONAL FRANCHISES BUT ARE ALSO POSSIBLE TAKEOVER TARGETS MR KERSCHNER SAYS IN THE CONSUMERPRODUCT ARENA MR KERSCHNER RECOMMENDS BUYING COMPANIES SUCH AS GERBER PRODUCTS AND PET WHICH ARE RELATIVELY SMALL BUT NONETHELESS LAY CLAIM TO LEADING BRANDS OTHER AREAS THAT COULD BE RIPE FOR TAKEOVERS NEXT YEAR ARE INDUSTRIES THAT ARE TRYING TO REDEFINE THEMSELVES SUCH AS TELECOMMUNICATIONS MR KERSCHNER SAYS HERE HIS FAVORITE STOCKS ARE ALC COMMUNICATIONS AND LDDS COMMUNICATIONS TWO LONGDISTANCE TELEPHONE COMPANIES AND VODAFONE A BRITISH MOBILETELECOMMUNICATIONS CONCERN IN SOME INDUSTRIES SUCH AS HEALTH CARE A COMPELLING CASE CAN BE MADE FOR A PICKUP IN ACQUISITION ACTIVITY MR KERSCHNER SAYS NOT ONLY IS THERE OVERCAPACITY IN THE HEALTHCARE INDUSTRY BUT NOW MORE THAN AT ANY TIME IN HISTORY HEALTHCARE COMPANIES ARE TRYING TO REDEFINE THEMSELVES AND ADAPT TO A WORLD IN WHICH COSTS ARE GOING TO BE AS IMPORTANT AS CARE KEVIN BANNON CHIEF INVESTMENT OFFICER AT BANK OF NEW YORK SUGGESTS THAT INVESTORS SEARCHING FOR TAKEOVER IDEAS LOOK IN INDUSTRIES WHERE SIZE IS AN ADVANTAGE THAT'S WHY DRUG AND HEALTHCARE CONCERNS ARE IDEAL ACQUISITION MATERIAL WITH THESE COMPANIES UNDER GROWING PRESSURE TO CONTROL COSTS IT'S GOING TO BE HARDER AND HARDER FOR SMALL COMPANIES TO SHOULDER THE ENORMOUS EXPENSES FOR RESEARCH AND DEVELOPMENT AND TO SELL DRUGS AT A LOW PRICE SIMILARLY BIG COMPANIES WILL FIND IT'S CHEAPER TO EXPAND THEIR PRODUCT LINES BY BUYING ANOTHER COMPANY INSTEAD OF DEVELOPING A NEW PRODUCT IN HOUSE THOUGH INVESTORS IN THE PAST HAVE FROWNED ON COMPANIES THAT CHOOSE TO BOOST THEIR EARNINGS THROUGH ACQUISITIONS MR BANNON THINKS THEY'LL TAKE A DIFFERENT VIEW IN THE FUTURE I THINK AS INVESTORS REALIZE IT'S GOING TO BECOME A FACT OF LIFE THEY WILL RESPOND FAVORABLY HE SAYS WHILE THE WINDFALLS FROM PICKING THE NEXT TAKEOVER STOCK CAN BE TREMENDOUS SOME ANALYSTS WARN THAT WITH STOCK PRICES SO HIGH STOCK SELECTION IS CRITICAL IN THE '80S IT WAS SO CHEAP TO BUY ANOTHER COMPANY THAT YOU DIDN'T HAVE TO PUSH THE PENCIL HARD SAYS ABBY COHEN STOCK STRATEGIST AT GOLDMAN SACHS BUT NOW WITH STOCKS TRADING AT OR ABOUT REPLACEMENT VALUE YOU'D BETTER HOPE THAT THE DEAL WORKS OUT OTHER ANALYSTS SAY THEY DON'T BELIEVE TAKEOVERS WILL BECOME A DOMINANT FORCE IN THE STOCK MARKET AT LEAST NOT AS MUCH AS IN THE 80S BECAUSE THERE IS LITTLE INCENTIVE FOR COMPANIES TO MAKE ACQUISITIONS WHEN STOCKS ARE TRADING AT SUCH LOFTY LEVELS STOCKS ARE REASONABLY VALUED GIVEN WHERE INTEREST RATES ARE SO YOU DON'T HAVE THE SAME MOTIVATIONS TO BUY COMPANIES AS YOU HAD IN THE '80S SAYS JOHN BALLEN PORTFOLIO MANAGER OF MASSACHUSETTS FINANCIAL SERVICES' 11 BILLION EMERGING GROWTH FUND MR BALLEN SAYS IT'S NO COINCIDENCE THAT MOST OF THE ACQUISITIONS THAT HAVE OCCURRED THIS YEAR HAVE TAKEN PLACE IN THE HEALTHCARE ARENA WHERE STOCKS ARE TRADING AT DEEPLY DEPRESSED LEVELS ACQUISITIONS HAVE TO MAKE SENSE ON A DOLLARANDCENTS BASIS AND IN MOST SECTORS TODAY THEY DON'T HE SAYS THE DOW JONES INDUSTRIAL AVERAGE FELL AFTER TRADING IN RECORD TERRITORY FOR MOST OF THE SESSION THE INDEX OF 30 BLUECHIP STOCKS EASED 447 POINTS TO 375772 STANDARD & POOR'S 500STOCK INDEX EDGED UP 006 TO 46738 COMING WITHIN TARGET RANGE OF A NEW HIGH AND THE NASDAQ COMPOSITE INDEX GAINED 263 TO 75870 FOR THE WEEK THE INDUSTRIALS ROSE 016 AND THE S&P 500 GAINED 021 BUT THE NASDAQ COMPOSITE INDEX LOST 007 FINANCIAL MARKETS WERE CLOSED FRIDAY FOR CHRISTMAS EVE GENERAL DYNAMICS SLID 3 TO 94 THE DEFENSE CONCERN SAID IT ENTERED INTO A DEFINITIVE AGREEMENT TO SELL ITS SPACE SYSTEMS DIVISION TO MARTIN MARIETTA FOR 2085 MILLION IN CASH MARTIN MARIETTA DECLINED 3/8 TO 44 3/8 ESYSTEMS SLUMPED 1 3/4 TO 43 5/8 SOME ANALYSTS POINTED TO THE COMPANY'S RECENT LOSS IN BIDDING FOR A STUDENTLOAN SERVICE CONTRACT COWEN & CO CUT ITS RATING ON THE DALLAS RECONNAISSANCE AND SURVEILLANCE SYSTEMS CONCERN TO BUY FROM STRONG BUY AND LOWERED 1994 AND 1995 EARNINGS ESTIMATES PARAMOUNT COMMUNICATIONS SAGGED 1 TO 78 5/8 AND QVC NETWORK NASDAQ FELL 1/4 TO 40 PARAMOUNT AGREED ON WEDNESDAY TO BE ACQUIRED BY QVC NETWORK UNTIL NOW A HOSTILE BIDDER AND TO ADVISE SHAREHOLDERS TO EMBRACE QVC'S 10 BILLION OFFER OVER VIACOM'S 95 BILLION BID THOUGH THE COMPANY TERMINATED AN ACQUISITION AGREEMENT WITH VIACOM IT LEFT THE DOOR OPEN TO HIGHER OFFERS VIACOM CLASS B SHARES AMEX ROSE 3/4 TO 46 3/4 UAL DIVED 1 7/8 TO 146 5/8 THE COMPANY HAS AGREED TO SELL A MAJORITY STAKE TO ITS MAIN UNIONS IN EXCHANGE FOR BIG LABOR CONCESSIONS FIBREBOARD AMEX ADDED 1 TO 34 5/8 THE PRODUCER OF MOLDED INSULATION SAID IT HAS ENTERED INTO DEFINITIVE AGREEMENTS WITH ITS INSURERS AND WITH ATTORNEYS FOR ASBESTOS PERSONALINJURY CLAIMANTS FOR A COMPREHENSIVE SETTLEMENT OF CLAIMS AGAINST THE COMPANY FORD MOTOR LOST 3/4 TO 64 7/8 AND GENERAL MOTORS 3/8 TO 55 1/4 BOTH COMPANIES INITIATED RECALLS OF CERTAIN 1992 AND 1993 MODEL VEHICLES STOCK PICKS IN THREE INDUSTRIES THAT ARE RIPE FOR TAKEOVERS 9312270174 931227 BUSINESS BRIEF DRESSER INDUSTRIES INC US JUSTICE PACT CLEARS PATH FOR ACQUISITION OF BAROID DRESSER INDUSTRIES INC DALLAS SAID IT REACHED AN AGREEMENT WITH THE JUSTICE DEPARTMENT'S ANTITRUST ENFORCERS THAT WILL ALLOW THE OIL SERVICE COMPANY TO COMPLETE ITS 840 MILLION ACQUISITION OF BAROID CORP UNDER THE AGREEMENT DRESSER MUST DISPOSE OF ITS 64 INTEREST IN MI DRILLING FLUIDS CO OR ITS BAROID DRILLING FLUIDS INC A SUBSIDIARY DRESSER ALSO MUST DISPOSE OF A DOMESTIC DIAMOND DRILLBIT BUSINESS DRESSER AGREED TO ACQUIRE BAROID IN SEPTEMBER IN A STOCK TRANSACTION THE ACQUISITION WILL ALLOW DRESSER A DIVERSIFIED OILSERVICES CONCERN TO OFFER MORE SERVICES PARTICULARLY ABROAD UNDER THE AGREEMENT WITH THE JUSTICE DEPARTMENT DRESSER DOESN'T HAVE TO DIVEST ITSELF OF THE DRILLINGFLUIDS OR DRILLBIT COMPANIES BEFORE IT COMPLETES ITS ACQUISITION OF BAROID BUT DRESSER MUST RELEASE THESE COMPANIES BY SUMMER 1994 9312270173 931227 COMPUSA OPENS 4 STORES DALLAS COMPUSA INC SAID IT OPENED FOUR NEW COMPUTER SUPERSTORES GIVING THE RETAILER 70 SUCH OUTLETS IN THE US THE NEW STORES ARE IN CLEVELAND OXNARD CALIF NEWARK CALIF AND NOVI MICH 9312270172 931227 BANCTEC INC ACQUISITION DALLAS BANCTEC INC SAID IT ACQUIRED ADVANCED COMPUTER SYSTEMS INC FOR ABOUT 25 MILLION THE DAYTON OHIOBASED SOFTWARE PROVIDER HAS ANNUAL REVENUE OF ABOUT 30 MILLION BANCTEC SAID BANCTEC MAKES DOCUMENTPROCESSING SYSTEMS 9312270171 931227 MERIT SOFTWARE PREFERRED IPO DALLAS MERIT SOFTWARE INC SAID IT SOLD ONE MILLION 4 CUMULATIVE CONVERTIBLE PREFERRED SHARES AT 4 A SHARE IN AN INITIAL PUBLIC OFFERING THE SOFTWARE DISTRIBUTOR SAID THE PROCEEDS WILL BE USED FOR EXPANSION TEXAS CAPITAL SECURITIES HERE IS THE LEAD UNDERWRITER 9312270170 931227 GENSIA COMPLETES TRANSACTION SAN DIEGO GENSIA INC SAID IT COMPLETED A 22 MILLION SALE AND LEASEBACK TRANSACTION WITH AN AFFILIATE OF WP CAREY & CO A NEW YORK INVESTMENT BANK INVOLVING THE BIOPHARMACEUTICAL COMPANY'S HEADQUARTERS AND CENTRAL RESEARCH AND DEVELOPMENT FACILITIES 9312270169 931227 SOVEREIGN GETS GREEN LIGHT TO GATHER EVIDENCE IN SUIT AGAINST ITS CHAIRMAN BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL SOVEREIGN BANCORP INC PURSUING THE UNUSUAL LAWSUIT IT FILED AGAINST ITS CHAIRMAN LAST WEEK SECURED A COURT ORDER TO BEGIN COLLECTING EVIDENCE ON AN EXPEDITED SCHEDULE THE RULING THURSDAY BY A FEDERAL JUDGE IN PHILADELPHIA CAME AS THE BANK'S TOP EXECUTIVE DEFENDED THE WYOMISSING PA BANK HOLDING COMPANY'S SUIT SAYING THE LEGAL MOVE WAS NECESSARY TO PROTECT SHAREHOLDER INTERESTS CHIEF EXECUTIVE OFFICER JAY S SIDHU HAD INSTRUCTED ATTORNEYS FOR SOVEREIGN TO BRING THE SUIT LAST MONDAY AGAINST CHAIRMAN FREDERICK J JAINDL AND TWO OTHER DIRECTORS THE SUIT ALLEGED A RANGE OF IMPROPRIETIES INCLUDING FAILURE BY THAT GROUP TO DISCLOSE EFFORTS TO ARRANGE FOR THE COMPANY'S SALE MR JAINDL SOVEREIGN'S LARGEST SHAREHOLDER WITH AN 114 STAKE HAS DISPUTED THE CHARGES ATTRIBUTING THE DISPUTE TO A POWER STRUGGLE ON THE BOARD MR SIDHU ALSO CHALLENGED ASSERTIONS BY MR JAINDL THAT THE COMPANY HAD RECENTLY RECEIVED SPECIFIC OVERTURES FROM TWO OTHER LARGE BANK COMPANIES WHICH MR JAINDL HASN'T PUBLICLY IDENTIFIED THE SUIT BY SOVEREIGN FILED IN FEDERAL COURT IN PHILADELPHIA CITES HIGHLEVEL PROBLEMS AT A COMPANY THAT HAD SEEMED TO BE GROWING STEADILY AND EFFICIENTLY THE COMPLAINT ALLEGES AMONG OTHER THINGS THAT MR JAINDL MET SEVERAL TIMES THIS YEAR WITH BANK OFFICIALS AND FELLOW DIRECTORS TO DISCUSS SELLING THE BANK MR JAINDL IS ALSO ALLEGED TO HAVE MET AND SHARED CONFIDENTIAL FINANCIAL INFORMATION WITH THE HEAD OF MERGERS AND ACQUISITIONS FOR A MAJOR PENNSYLVANIA BANK WHILE MAINTAINING HE HAS DONE NOTHING WRONG MR JAINDL ACKNOWLEDGED IN INTERVIEWS LAST WEEK THAT HE HAS SOUGHT TO PERSUADE SOVEREIGN'S BOARD TO CONSIDER SELLING THE COMPANY TO MAXIMIZE SHAREHOLDER VALUE HE SAID THAT A SPLIT ON THE EIGHTMEMBER BOARD HAS BLOCKED SUCH CONSIDERATION 9312270168 931227 WHO'S NEWS COREL CORP COREL CORP OTTAWA CHUCK NORRIS WAS NAMED CHIEF FINANCIAL OFFICER OF THIS GRAPHICS SOFTWARE PRODUCER MR NORRIS FORMERLY COMPTROLLER SUCCEEDS MICHAEL SLAUNWHITE WHO RESIGNED TO PURSUE OTHER BUSINESS INTERESTS 9312270167 931227 WHO'S NEWS CU BANCORP CU BANCORP ENCINO CALIF KENNETH L BERNSTEIN CHIEF OPERATING OFFICER OF BFC FINANCIAL CORP WAS ELECTED A DIRECTOR OF THIS BANK HOLDING CONCERN MR BERNSTEIN 51 YEARS OLD SUCCEEDS RONALD PARKER 48 WHO RESIGNED 9312270166 931227 US MAKERS TO BUILD 211146 CARS TRUCKS DETROIT THE 10 COMPANIES THAT BUILD CARS AND TRUCKS IN THE US SAID THEY PLANNED TO BUILD A COMBINED TOTAL OF 211146 VEHICLES LAST WEEK IN THE YEAREARLIER WEEK ALL OF THE DOMESTIC AUTO PLANTS WERE SHUT DOWN FOR THE HOLIDAYS ALL US AND CANADIAN ASSEMBLY OPERATIONS WILL BE IDLE THIS WEEK FOR THE TRADITIONAL CHRISTMAS BREAK 9312270165 931227 SWIRE PACIFIC ACQUIRES MAJOR STAKE IN BOTTLER THROUGH SALE TO UNIT SPECIAL TO THE WALL STREET JOURNAL HONG KONG A UNIT OF SWIRE PACIFIC LTD AGREED TO ACQUIRE AN ADDITIONAL 492 STAKE IN TAIWAN COCACOLA BOTTLING CO FOR 22 MILLION BOOSTING ITS EFFECTIVE INTEREST TO 637 SWIRE PACIFIC INDUSTRIES LTD A WHOLLY OWNED SUBSIDIARY OF SWIRE PACIFIC LTD PROCEEDED WITH THE PURCHASE IN ACCORDANCE WITH ITS GENERAL OFFER LAUNCHED IN SEPTEMBER ALTHOUGH CERTAIN TAIWAN SHAREHOLDERS DECLINED TO SELL THEIR 18 INTEREST OF TAIWAN COCACOLA THE SOLE BOTTLER OF COCACOLA SOFTDRINK PRODUCTS ON THE ISLAND SWIRE PACIFIC LTD ALREADY HOLDS 145 OF THE TAIWAN COMPANY THROUGH ITS 50OWNED JOINT VENTURE WITH COCACOLA CO OF THE US THE VENTURE OWNS AN AGGREGATE 29 OF THE SHARES OF THE BOTTLER WHILE COCACOLA DIRECTLY HOLDS ANOTHER 20 SWIRE PACIFIC LTD SAID IT PLANS TO INCREASE THE RANGE OF COCACOLA SOFT DRINK PRODUCTS MADE BY THE TAIWAN COMPANY INCLUDING NONCARBONATED DRINKS AND TO POSITION THE COMPANY TO BECOME A COMPLETE BEVERAGE SUPPLIER FOR TAIWAN MEANWHILE IT SAID AN AGREEMENT HAS BEEN REACHED TO BUY A 25 STAKE IN BC DEVELOPMENT CO A HOLDING COMPANY OF COCACOLA BOTTLING COMPANIES IN NANJING HANGZHOU AND XIAN IN CHINA FROM BEIJING'S CHINA INTERNATIONAL TRUST & INVESTMENT CORP KNOWN AS CITIC SWIRE PACIFIC LTD WILL RAISE ITS INTEREST IN BC DEVELOPMENT TO 55 FROM 30 AFTER THE SALE CITIC'S INTEREST WILL BE REDUCED TO 15 THE REMAINING 30 IS HELD BY COCACOLA THROUGH THE JOINT VENTURE WITH SWIRE PACIFIC LTD CONSIDERATION FOR THE TRANSACTION PARTLY WILL DEPEND ON THE YEAREND RESULTS OF BC DEVELOPMENT THE COMPANY SAID BUT IS EXPECTED TO BE ABOUT 60 MILLION YUAN 104 MILLION 9312270164 931227 CHILE JOBLESS RATE DECLINES SANTIAGO CHILE UNEMPLOYMENT IN CHILE DROPPED TO 48 IN OCTOBER FROM 50 IN SEPTEMBER AND FROM 51 A YEAR EARLIER THE CENTRAL BANK REPORTED THE FIGURE IS STILL HIGHER THAN THE 44 AT THE BEGINNING OF THIS YEAR ACCORDING TO THE BANK UNEMPLOYMENT IN SANTIAGO WHICH ACCOUNTS FOR 40 OF THE NATION'S LABOR FORCE OF FIVE MILLION PEOPLE DROPPED TO 35 IN OCTOBER FROM 39 IN SEPTEMBER AND 55 A YEAR EARLIER 9312270162 931227 TAIWAN'S LATEST MONEY SUPPLY TAIPEI TAIWAN TAIWAN'S DAILY AVERAGE M2 MONEY SUPPLY ROSE 14 IN NOVEMBER TO 987 TRILLION TAIWAN DOLLARS US37316 BILLION FROM THE YEAREARLIER MONTH AND UP 11 FROM OCTOBER THE CENTRAL BANK ANNOUNCED NOVEMBER'S YEARONYEAR M2 GROWTH OF 144 COMPARED WITH OCTOBER'S 147 THE CENTRAL BANK ATTRIBUTED THE EXPANSION IN THE BROAD MEASURE OF MONEY SUPPLY MAINLY TO INCREASES OF T126 TRILLION IN LOANS TO PRIVATE BUSINESSES FOR THE FIRST 11 MONTHS THIS YEAR THE BANK SAID LOANS TO GOVERNMENT AGENCIES FOR THE 11 MONTHS HAVE INCREASED BY T1755 BILLION 9312270161 931227 ITALY'S AVERAGE HOURLY WAGES ROME AVERAGE HOURLY WAGES IN ITALY WERE UNCHANGED IN NOVEMBER FROM OCTOBER AND WERE UP 3 FROM A YEAR EARLIER ACCORDING TO THE STATE STATISTICS BUREAU ISTAT THE NOVEMBER FIGURES COMPARED WITH OCTOBER HOURLY WAGES THAT WERE UP 05 FROM THE MONTH BEFORE AND UP 3 FROM A YEAR EARLIER THE YEARONYEAR INCREASE IN NOVEMBER WAGES COMPARED WITH AN INFLATION RATE OF 42 FOR THE MONTH ISTAT ALSO SAID THAT IN THE FIRST 10 MONTHS OF THE YEAR NONWORKING HOURS DUE TO STRIKES TOTALED 194 MILLION COMPARED WITH A YEAREARLIER 176 MILLION 9312270160 931227 ECONOMY MACHINETOOL ORDERS FELL 4 IN NOVEMBER DATA SIGNAL IMPROVEMENT BUT GROWTH REMAINS TOO LOW TO LIFT BACKLOG BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL MACHINETOOL ORDERS FELL 4 TO 2412 MILLION IN NOVEMBER FROM OCTOBER A SIGN THAT THE INDUSTRY THOUGH IMPROVING STILL ISN'T RECEIVING ENOUGH ORDERS TO SUSTAIN STEADY MONTHLY GROWTH IN BACKLOG WHEN COMPARED WITH NOVEMBER 1992 HOWEVER ORDERS ROSE 50 DRIVEN BY THE IMPROVING HEALTH OF THE US AUTOMOBILE INDUSTRY AND A SLOWLY EXPANDING CUSTOMER BASE ACCORDING TO THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY A MACHINETOOL INDUSTRY GROUP FOR THE FIRST 11 MONTHS OF THE YEAR TOTAL ORDERS WERE UP 31 PROPELLED BY DOMESTIC ORDERS WHICH INCREASED 38 EXPORTS WERE DOWN 17 FOR THE YEARTODATE MACHINETOOL ORDERS ARE CONSIDERED AN INDICATOR OF FUTURE ECONOMIC ACTIVITY BECAUSE THE PRODUCTS ARE ORDERED AS MUCH AS TWO YEARS BEFORE BEING SHIPPED MACHINE TOOLS CUT AND FORM METAL PARTS FOR A WIDE RANGE OF INDUSTRIES WE'RE CLEARLY IN A RECOVERY THAT'S THE REASON FOR THE STRONG YEARTOYEAR GAIN IN ORDERS SAID MITCHELL QUAIN AN ANALYST WITH WERTHEIM SCHRODER & CO BUT UNTIL ORDERS GET TO OVER 300 MILLION MONTHLY ON A SUSTAINABLE BASIS THE INDUSTRY IS UNABLE TO BUILD BACKLOG AND WITH AN INABILITY TO BUILD BACKLOG THE PRICING AND MARGINS CONTINUE TO BE UNDER PRESSURE THE IMPROVEMENT IN ORDERS COMPARED WITH A YEAR EARLIER COMES PRIMARILY FROM THE AUTO INDUSTRY THAT'S WHERE THE ACTION IS MR QUAIN SAID MANY OF THE MACHINETOOL INDUSTRY'S CUSTOMERS HAVE FAR CLEANER BALANCE SHEETS AND ARE FAR MORE COMPETITIVE DUE TO THE WEAKNESS IN THE DOLLAR VS THE YEN MONARCH MACHINE TOOL INC IS SEEING A PICKUP IN ORDERS FROM COMPANIES IN A WIDE RANGE OF INDUSTRIES NOT JUST AUTOMOBILES ACCORDING TO ROBERT J SIEWERT PRESIDENT OF THE SIDNEY OHIO CONCERN WE'RE EXPERIENCING A VERY GOOD DECEMBER AND IT APPEARS WE'LL ALSO HAVE A VERY GOOD JANUARY IN NEW ORDERS HE SAID I'M NOT SAYING THAT'S A TREND BUT IT'S A GOOD SIGN RICHARD A SMITH PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NEWCOR CORP A MACHINETOOL MAKER IN BLOOMFIELD MICH SAID THE INDUSTRY IS FACING AGGRESSIVE COMPETITION FROM EUROPEAN RIVALS WHICH ARE BIDDING LOW AND WINNING BIG ORDERS FROM SUCH US COMPANIES AS GENERAL MOTORS CORP WE'RE SEEING A TREMENDOUS AMOUNT OF COMPETITION BASED PRIMARILY ON PRICE COMING OUT OF EUROPE HE SAID IN NOVEMBER DOMESTIC MACHINETOOL ORDERS FELL 2 TO 227 MILLION FROM OCTOBER ORDERS FOR EXPORT FELL 27 TO 143 MILLION IN THE SAME PERIOD COMPARED WITH NOVEMBER 1992 DOMESTIC ORDERS WERE UP 59 EXPORTS WERE DOWN 22 COMPARED WITH LAST YEAR 9312270159 931227 FIRST BANK SYSTEM ACQUISITION MINNEAPOLIS FIRST BANK SYSTEM INC SAID IT AGREED TO ACQUIRE CLOSELY HELD UNITED BANK OF BISMARCK IN NORTH DAKOTA TERMS WEREN'T DISCLOSED THE COMPANY SAID THE ACQUISITION IS CONTINGENT UPON REGULATORY APPROVALS AND IS EXPECTED TO CLOSE IN THE SECOND QUARTER OF 1994 UNITED BANK WHICH HAS 123 MILLION IN ASSETS WILL BE CONSOLIDATED WITH THE COMPANY'S FIRST BANK OF NORTH DAKOTA NA 9312270158 931227 WHO'S NEWS ROSEVILLE TELEPHONE CO ROSEVILLE TELEPHONE CO ROSEVILLE CALIF BRIAN H STROM 51 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS INDEPENDENT REGIONAL PHONE COMPANY HE HAD BEEN VICE PRESIDENT AND CHIEF FINANCIAL OFFICER HE SUCCEEDS ROBERT L DOYLE 74 WHO HAD BEEN PRESIDENT FOR NEARLY 40 YEARS MR DOYLE REMAINS CHAIRMAN 9312270157 931227 TAIWAN'S UNEMPLOYMENT RATE TAIPEI TAIWAN'S UNEMPLOYMENT RATE STOOD AT 139 IN NOVEMBER UP 003 PERCENTAGE POINT FROM A YEAR EARLIER BUT DOWN 019 PERCENTAGE POINT FROM OCTOBER THE GOVERNMENT REPORTED UNEMPLOYMENT WAS AT 158 IN OCTOBER AND SEPTEMBER AND 190 IN AUGUST THE YEARONYEAR RISE IN THE JOBLESS RATE WAS ATTRIBUTED TO A DECREASED NUMBER OF WORKERS IN INDUSTRIAL AND AGRICULTURAL SECTORS THE NUMBER OF UNEMPLOYED WORKERS DURING THE MONTH STOOD AT 124000 UP 3000 OR 23 FROM A YEAR EARLIER 9312270156 931227 CANADIAN STEEL PRODUCTION OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 266055 METRIC TONS IN THE WEEK ENDED DEC 18 A 76 DECLINE FROM 288062 TONS THE PREVIOUS WEEK AND A 43 DECLINE FROM 277940 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS ABOUT 220462 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 13806881 TONS A 34 INCREASE FROM 13348015 TONS A YEAR EARLIER 9312270155 931227 WHO'S NEWS MOBLEY ENVIRONMENTAL SERVICES INC MOBLEY ENVIRONMENTAL SERVICES INC KILGORE TEXAS W CHRISTOPHER CHISHOLM VICE PRESIDENT AND CONTROLLER OF THE WASTEMANAGEMENT CONCERN WAS NAMED CHIEF FINANCIAL OFFICER MR CHISHOLM 34 YEARS OLD SUCCEEDS CARROLL D PHILLIPS 59 WHO RETIRED THE POSTS OF VICE PRESIDENT AND CONTROLLER WON'T BE FILLED 9312270154 931227 MCDONNELL DOUGLAS TO CALL DEBT ST LOUIS MCDONNELL DOUGLAS CORP SAID IT WILL CALL ITS 7875 NOTES DUE JAN 15 1997 ON JAN 21 1994 AT THE REDEMPTION PRICE OF 100 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST TO THE DATE OF REDEMPTION THE MAKER OF AIRCRAFT AND DEFENSE EQUIPMENT ISSUED 150 MILLION OF THE NOTES ON JAN 15 1987 THE REGULAR INTEREST PAYMENT DUE JAN 15 1994 WILL BE PAID IN THE USUAL MANNER 9312270153 931227 INTERNATIONAL JAPANESE TRADE SURPLUS TOKYO JAPAN POSTED A TRADE SURPLUS FOR THE FIRST 10 DAYS OF DECEMBER OF 211 BILLION ON THE BASIS OF GOODS PASSING CUSTOMS BUT BEFORE ADJUSTMENT FOR SEASONAL FACTORS UP 10 FROM THE 191 BILLION SURPLUS IN THE YEAREARLIER PERIOD THE FINANCE MINISTRY SAID THE MINISTRY PROVIDED AN AVERAGE EXCHANGE RATE OF 10776 YEN TO THE DOLLAR FOR EXPORTS AND IMPORTS IN THE LATEST REPORTING PERIOD REPRESENTING A SUBSTANTIAL APPRECIATION OF THE YEN FROM 12405 YEN TO THE DOLLAR THE YEAR BEFORE 9312270152 931227 WHO'S NEWS MYLEX CORP MYLEX CORP FREMONT CALIF ISMAEL DUDHIA WAS ELECTED CHAIRMAN OF THIS COMPUTERPRODUCTS MAKER HE SUCCEEDS MA CHOWDRY WHO RESIGNED AS CHAIRMAN BUT WILL REMAIN A DIRECTOR THE COMPANY DECLINED TO SAY WHY MR CHOWDRY RESIGNED AL MONTROSS 57 CHIEF OPERATING OFFICER WAS NAMED ACTING PRESIDENT BY AN EXECUTIVE COMMITTEE THAT WAS FORMED IN OCTOBER WHEN MR CHOWDRY STEPPED DOWN AS CHIEF EXECUTIVE OFFICER THE COMPANY SAID IT EXPECTS TO NAME A CHIEF EXECUTIVE AND PRESIDENT WITHIN 60 DAYS 9312270151 931227 GARNET ISSUES DEBENTURES HOUSTON GARNET RESOURCES CORP SAID IT COMPLETED THE SALE OF 15 MILLION OF FIVEYEAR CONVERTIBLE SUBORDINATED DEBENTURES IN A PRIVATE OFFERING TO AN INVESTOR GROUP HEADED BY PECKS MANAGEMENT PARTNERS LTD GARNET AN OIL COMPANY SAID THE DEBENTURES BEAR INTEREST AT 95 A YEAR AND ARE CONVERTIBLE AT THE OPTION OF THE HOLDERS INTO GARNET COMMON STOCK AT 550 A SHARE FINANCING WAS PLACED BY ALLEN & CO GARNET PLANS TO USE A PART OF THE PROCEEDS FOR AN 11WELL DEVELOPMENT AND EXPLORATORY DRILLING PROGRAM IN COLOMBIA 9312270150 931227 INTERNATIONAL ITALY'S JOBLESS RATE INCREASES ROME ITALY'S UNEMPLOYMENT RATE STOOD AT 113 IN THE THIRD QUARTER OF 1993 UP FROM 97 IN THE YEAREARLIER PERIOD AND 103 IN THIS YEAR'S SECOND QUARTER ACCORDING TO FIGURES RELEASED BY STATE STATISTICAL INSTITUTE ISTAT THE TOTAL NUMBER OF PEOPLE LOOKING FOR WORK IS 2567000 OF WHICH 1127000 ARE IN SEARCH OF THEIR FIRST JOB THE UNEMPLOYMENT RATE WAS HIGHEST IN THE SOUTH WHICH REGISTERED A JOBLESS RATE OF 189 IN THE QUARTER UP FROM 164 IN THE YEAREARLIER PERIOD UNEMPLOYMENT IN CENTRAL ITALY ROSE TO 98 FROM 78 WHILE UNEMPLOYMENT IN INDUSTRIAL NORTHERN ITALY ROSE TO 69 FROM 6 9312270149 931227 JAPAN'S LATEST CRUDE OIL IMPORTS TOKYO CRUDE OIL IMPORTS INTO JAPAN DECLINED 05 FROM A YEAR EARLIER TO 44 MILLION BARRELS A DAY IN NOVEMBER ACCORDING TO THE PRELIMINARY STATISTICS RELEASED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY THE IMPORT FIGURE 55 HIGHER THAN THE OCTOBER IMPORTS WAS THE FOURTH CONSECUTIVE YEARONYEAR DECLINE SINCE AUGUST IMPORTS OF PETROLEUM PRODUCTS FELL FOR THE FOURTH CONSECUTIVE MONTH REACHING 341000 BARRELS A DAY IN NOVEMBER OIL INDUSTRY SOURCES SAY THAT JAPANESE OIL COMPANIES HAVE BEEN LOWERING THEIR OIL IMPORTS SINCE THE SUMMER BECAUSE THE UNSEASONABLY COOL SUMMER AND THE ECONOMIC RECESSION HAD RESULTED IN BUILDUPS OF OIL INVENTORIES HELD BY PRIVATE OIL COMPANIES 9312270148 931227 ITALY'S TRADE SURPLUS WITH EC ROME ITALY'S MERCHANDISE TRADE SURPLUS WITH OTHER MEMBER COUNTRIES OF THE EUROPEAN COMMUNITY BASED ON BALANCE OF PAYMENTS ACCOUNTS WAS 13 TRILLION LIRE 7822 MILLION IN OCTOBER A YEAR EARLIER ITALY HAD A MERCHANDISE TRADE DEFICIT OF 300 BILLION LIRE THE ITALIAN STATISTICAL AGENCY ISTAT SAID IN THE FIRST 10 MONTHS OF THE YEAR THE MERCHANDISE TRADE ACCOUNT WITH OTHER EC MEMBERS SWUNG TO A SURPLUS OF 10236 TRILLION LIRE FROM A DEFICIT OF 9025 TRILLION LIRE IN THE YEAREARLIER PERIOD ISTAT SAID IMPORTS FELL 79 TO 11656 TRILLION LIRE IN OCTOBER FROM A YEAR EARLIER WHILE EXPORTS ROSE 49 TO 12965 TRILLION LIRE 9312270147 931227 INTERNATIONAL SIEMENS TO BUILD 118 BILLION PLANT FOR DRAM CHIPS SPECIAL TO THE WALL STREET JOURNAL DRESDEN GERMANY SIEMENS AG SAID IT WILL SPEND MORE THAN TWO BILLION MARKS 118 BILLION TO BUILD A RESEARCHANDDEVELOPMENT AND PRODUCTION CENTER FOR SEMICONDUCTORS IN DRESDEN THE GERMAN COMPANY PLANS TO PRODUCE THE NEWEST GENERATION OF SEMICONDUCTORS AT THE PLANT HOPING TO FILL A VOID IN EUROPE WHICH HAS FOR YEARS LAGGED BEHIND JAPAN AND THE US IN HIGHTECH DEVELOPMENT THE PLANT WILL PRODUCE 64MEGABIT DYNAMIC RANDOM ACCESS MEMORY CHIPS OR DRAMS WHICH SIEMENS BEGAN MARKETING IN THE AUTUMN FOLLOWING JOINT DEVELOPMENT WITH INTERNATIONAL BUSINESS MACHINES CORP OF THE US THE NEXT GENERATION OF CHIPS THE 256MEGABIT DRAM BEING DEVELOPED WITH IBM AND JAPAN'S TOSHIBA CORP WILL ALSO BE MADE AT THE DRESDEN SITE ONCE DEVELOPMENT IS COMPLETE SIEMENS CHAIRMAN HEINRICH VON PIERER SAID THE BONN GOVERNMENT IS EXPECTED TO SUBSIDIZE AT LEAST 300 MILLION MARKS OF THE COST BUT ANALYSTS PREDICTED TOTAL SUBSIDIES FOR THE PROJECT ARE LIKELY TO BE GREATER SIEMENS IS SEEKING PARTNERS IN THE PROJECT BUT MR PIERER EMPHASIZED THE GERMAN ELECTRONICS GROUP WOULD RETAIN MAJORITY OWNERSHIP AND CONTROL OF THE MICROELECTRONICS CENTER THE CHAIRMAN HINTED THAT GERMAN COMPANIES ALREADY ACTIVE IN THE AREA WOULD BE OBVIOUS POTENTIAL PARTNERS HE ALSO DECLINED TO SAY WHETHER SIEMENS'S TWO MAJOR INTERNATIONAL PARTNERS IBM AND TOSHIBA WOULD PARTICIPATE LAST WEEK AMID MARKET SPECULATION ABOUT THE PROJECT AN OFFICIAL AT TOSHIBA'S GERMAN SUBSIDIARY SAID THE JAPANESE COMPANY WOULDN'T TAKE PART IN THE PROJECT AN OFFICIAL AT IBM'S GERMAN UNIT ALSO SAID HIS COMPANY HAS NO PLANS FOR DRESDEN THE INVESTMENT IN THE DRESDEN PROJECT COMES DESPITE CONTINUED LOSSES IN SIEMENS'S SEMICONDUCTOR DIVISION WHICH ANALYSTS ESTIMATED AT ABOUT 500 MILLION MARKS A YEAR BUT SHRINKING MR PIERER SAID THAT WHILE THE SEMICONDUCTOR DIVISION WILL PROBABLY OPERATE AT A LOSS INTO THE NEXT FISCAL YEAR IT COULD REACH A PROFIT IN THE FISCAL YEAR THAT BEGINS OCT 1 1995 THE NEW CENTER WHICH COULD BEGIN PRODUCTION IN LATE 1995 COULD CONTRIBUTE TO THE GROUP PROFITS IN FISCAL 1996 HE SAID LOSSES IN THE SEMICONDUCTOR DIVISION AND SIEMENSNIXDORF INFORMATION SYSTEMS AG COMPUTER UNIT HAVE BEEN OFFSET BY THE GROUP'S OTHER 15 DIVISIONS FOR FISCAL 1993 SIEMENS POSTED ITS SIXTH CONSECUTIVE INCREASE IN ANNUAL NET PROFIT REPORTING A GROUP NET PROFIT OF 198 BILLION MARKS ON SALES OF 817 BILLION MARKS 9312270146 931227 THE OUTLOOK CLINTON'S HEALTH PLAN WHO WINS WHO LOSES BY DAVID WESSEL WASHINGTON DEBATES OVER TAXES AND ECONOMIC POLICY AND SOON HEALTH CARE OFTEN BOIL DOWN TO THIS QUESTION WHO WINS AND WHO LOSES POLICY WONKS POLITICIANS AND THE PRESS ARE TRYING TO COME UP WITH SOME EQUALLY TIDY PICTURE OF THE PRESIDENT'S HEALTHCARE INITIATIVE THEY ARE DISCOVERING THAT IT IS EASIER TO POSE THE QUESTION THAN FIND A MEANINGFUL ANSWER ONE THAT REFLECTS THE BENEFITS FAMILIES WOULD RECEIVE AS WELL AS THE COSTS IDENTIFYING WINNERS AND LOSERS ISN'T THE ONLY QUESTION TO ASK ABOUT MR CLINTON'S AMBITIOUS PLAN TO CONTROL HEALTHCARE COSTS WHILE EXPANDING ACCESS AND MAINTAINING THE CURRENT QUALITY OF CARE IF IT WORKS THE COUNTRY AS A WHOLE WILL BE BETTER OFF BUT THAT IS A BIG IF IF THE COST CONTROLS DON'T WORK IT TURNS INTO ALL PAIN FOR A LOT OF PEOPLE SAYS JOHN SHEILS OF LEWINVHI INC A FAIRFAX VA HEALTHINFORMATION CONSULTING FIRM THAT HAS PUBLISHED A DISSECTION OF THE CLINTON PLAN BUT AS CONGRESS WEIGHS CHANGES TO MR CLINTON'S PROPOSAL CONGRESS AND THE PUBLIC NEED TO KNOW WHO GETS THE BENEFITS AND WHO PAYS THE BILL AND THEY NEED TO BEWARE OVERLY SIMPLE ANSWERS AS PAST TAX DEBATES PROVE IT IS EASY TO MISUSE COMPUTERGENERATED TABLES THAT SHOW HOW MUCH VARIOUS FAMILIES PAY IF THERE WERE A HALL OF FAME FOR IMPLEMENTS OF POLITICAL WARFARE DISTRIBUTION TABLES WOULD BE THERE SAYS FORMER TREASURY TAX OFFICIAL FRED GOLDBERG IF THE CLINTON PLAN IS ENACTED AND WORKS THE NATION WILL SPEND LESS ON HEALTH CARE BY THE END OF THE DECADE THAN IT OTHERWISE WOULD BUT IT ISN'T A FREE LUNCH SOME WILL SPEND MORE EVEN WITHOUT A COMPUTER IT IS EASY TO PICK SOME OF THE WINNERS AND LOSERS EMPLOYERS WHO DON'T NOW PAY FOR THEIR EMPLOYEES' HEALTH INSURANCE WILL BE LOSERS WORKERS AFRAID TO SWITCH JOBS FOR FEAR OF LOSING HEALTH COVERAGE WILL BE WINNERS TO GET MORE PRECISE HOWEVER TURNS OUT TO BE SURPRISINGLY TOUGH EVEN THE WHITE HOUSE CONCEDES THAT SOME FAMILIES WILL PAY MORE FOR HEALTH INSURANCE UNDER THE CLINTON PLAN THAN THEY WOULD IF THE CURRENT SYSTEM REMAINED IN PLACE A WHITE HOUSE ANALYSIS CIRCULATING ON CAPITOL HILL FOR INSTANCE PROJECTS THAT ONE IN EVERY FOUR FAMILIES CURRENTLY COVERED BY EMPLOYERSPONSORED HEALTH INSURANCE WILL SPEND MORE ON PREMIUMS AND OUTOFPOCKET SPENDING IN THE YEAR 2000 THAN THEY WOULD OTHERWISE BUT IT IS TOUGH TO EVALUATE THIS PROJECTION WITHOUT KNOWING WHETHER THESE FAMILIES WOULD GET BETTER HEALTH COVERAGE AFTER SPENDING ABOUT 370 A YEAR MORE GOVERNMENT NUMBERCRUNCHING ECONOMISTS FIND IT EASIER TO PUT A FIGURE ON WHAT FAMILIES WILL PAY IN TAXES OR PREMIUMS THAN ON WHAT THEY WILL RECEIVE IN HEALTHINSURANCE BENEFITS IN DEBATES OVER TAX BILLS THIS ISN'T MUCH OF A FLAW IN THE COMING DEBATE OVER HEALTH CARE IT IS CRUCIAL THE LEWIN REPORT TAKES A CUT AT THE QUESTION UNLIKE THE WHITE HOUSE THE CONSULTING FIRM INCLUDES MR CLINTON'S PROPOSED INCREASE IN TOBACCO AND OTHER TAXES AND HIS BOOST IN MEDICARE PREMIUMS FOR UPPERINCOME ELDERLY BASED ON THAT IT FIGURES ABOUT HALF OF ALL HOUSEHOLDS WILL PAY LESS THAN THEY OTHERWISE WOULD MANY WOULD PAY SIGNIFICANTLY LESS ANOTHER 29 WOULD PAY MORE FOR IMPROVED COVERAGE A SIGNIFICANT 15 OF ALL HOUSEHOLDS WOULD PAY MORE AND GET NOTHING TANGIBLE FOR IT LEWIN ESTIMATES THIS INCLUDES SMOKERS WHO WOULD PAY HIGHER TAXES UPPERINCOME ELDERLY WHO FACE HIGHER MEDICARE PREMIUMS AND YOUNG FAMILIES ONE LITTLEUNDERSTOOD FACET OF THE CLINTON PLAN IS THAT PREMIUMS ARE TO BE BASED ON COMMUNITYWIDE COSTS RATHER THAN ON THE COSTS OF INSURING A PARTICULAR FAMILY OR SET OF EMPLOYEES EVEN LEWIN'S APPROACH MAY NOT BE SOPHISTICATED ENOUGH MANY ECONOMISTS ARGUE THAT AN EMPLOYER WHO IS FORCED BY THE GOVERNMENT TO SPEND MORE ON HEALTH INSURANCE WILL PAY WORKERS LOWER WAGES THE WHITE HOUSE IGNORES THIS AFTER ALL IT ESTIMATES THAT EMPLOYERS' OVERALL HEALTH TAB UNDER THE CLINTON PLAN WILL BE 10 LOWER BY THE YEAR 2000 THAN IT OTHERWISE WOULD BE LEWIN DIFFERS EVEN IF NATIONALHEALTH SPENDING IS AS MR CLINTON FORECASTS THE FIRM PROJECTS EMPLOYERS WILL SPEND 5 MORE IN THAT YEAR MR CLINTON HAS IGNITED A LONGOVERDUE DEBATE OVER THE US HEALTHCARE SYSTEM THE DEBATE ALREADY HAS BEEN FUELED BY A PROLIFERATION OF ANALYSES CHARTS AND EVEN SIMULATION SOFTWARE FOR HOME USE BUT WHEN IT COMES TO THE HEALTH DEBATE SIMPLIFYING ISSUES DOESN'T ALWAYS CLARIFY THEM NOTE INCLUDES PREMIUMS OUTOFPOCKET EXPENSES AND TAXES EARMARKED FOR HEALTH PLAN ASSUMES NO CHANGE IN WAGES ESTIMATES ARE FOR 1998 9312270145 931227 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED DEC 17 ACCOUNTED FOR 205 OR AN AVERAGE 617 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME THIS INCLUDED PROGRAM TRADING RELATED TO THE DEC 17 QUARTERLY EXPIRATION OF STOCKINDEX FUTURES AND OPTIONS BROKERAGE FIRMS EXECUTED AN ADDITIONAL 293 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 462 INVOLVED STOCKINDEX ARBITRAGE UP FROM 225 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 457 OF PROGRAM TRADING WAS EXECUTED BY FIRMS' FOR THEIR CUSTOMERS WHILE 444 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 99 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS SUSQUEHANNA EXECUTED ALL OF ITS PROGRAM TRADING FOR ITS OWN ACCOUNTS WHILE MORGAN STANLEY UBS SECURITIES JP MORGAN AND SALOMON BROTHERS DID MOST OR ALL OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9312270144 931206 WALKING WOUNDED SURVIVORS OF LAYOFFS BATTLE ANGST ANGER HURTING PRODUCTIVITY SOME TAKE DISTRUST AND FEAR WITH THEM TO OFFICE AS A JOSTENS UNIT FOUND PANIC ATTACKS MARITAL STRIFE BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL SAN DIEGO CALLAHAN'S A DARKPANELED PUB HERE FILLED EARLY ONE THURSDAY AFTERNOON LAST JULY PATRONS DROVE OVER FROM NEARBY JOSTENS LEARNING CORP HOURS AFTER THE BIGGEST US MAKER OF EDUCATIONAL SOFTWARE AXED 200 OF ITS 1800 EMPLOYEES ODDLY ENOUGH SOME OF THE LAYOFF VICTIMS SEEMED MORE UPBEAT THAN THE SURVIVORS TIMMOTHY RYAN THE ONLY MEMBER OF A SIXPERSON PROGRAMMING TEAM TO KEEP HIS JOB COULDN'T SHAKE A DARK DEPRESSION HE WAS FRIGHTENED ABOUT THE FUTURE AND ANGUISHED OVER THE LOSS OF THE COMPANY AS HE KNEW IT AS HE GLANCED AROUND THE ROOM HE COULDN'T HELP WONDERING WHO ARE THE LUCKY ONES HERE FIVE MONTHS LATER MR RYAN STILL SUFFERS AFTERSHOCKS FROM THE JULY 1 LAYOFFS THE PONYTAILED 31YEAROLD PROGRAMMER RECENTLY LEARNED THAT HIS PAINRIDDEN JAW WAS THE RESULT OF MONTHS OF GRINDING HIS TEETH DURING HIS SLEEP THE DENTIST'S DIAGNOSIS TOO MUCH STRESS MR RYAN IS ONE OF THE WALKING WOUNDED OF CORPORATE AMERICA'S LAYOFF BINGE SURVIVORS' ANGST IS ONE REASON THAT DOWNSIZING SOMETIMES PRODUCES NOWHERE NEAR THE RESULTS THAT COMPANIES EXPECT WORKERS WHO PULL THROUGH ENDLESS WAVES OF JOB CUTS CAN FEEL SO DISTRUSTFUL OVERWORKED AND INSECURE THAT THE BUSINESSES FAIL TO ACHIEVE THEIR PROJECTED GAINS IN PRODUCTIVITY AND PROFITABILITY SEVERAL RECENT STUDIES HAVE FOUND MORE COMPANIES ARE REACHING OUT TO SURVIVORS WITH COUNSELING OR OTHER SERVICES INCLUDING JOSTENS LEARNING BUT IN MANY CASES THAT JUST ISN'T ENOUGH IN A SURVEY OF 531 MAINLY LARGE COMPANIES FOR INSTANCE 85 HOPED RESTRUCTURING WOULD RAISE PROFITS BUT ONLY 46 SAW EARNINGS CLIMB WITHIN TWO FISCAL YEARS ACCORDING TO A STUDY BY WYATT CO A CONSULTANCY WHILE 58 HAD AIMED FOR HIGHER PRODUCTIVITY ONLY 34 GOT IT DURING THAT TIME PERIOD LAYOFFS INITIALLY LOWER LABOR COSTS OF COURSE YET SAVINGS OFTEN ARE SIGNIFICANTLY REDUCED BY A DECREASE IN SURVIVORS' PRODUCTIVITY AND MORALE SAYS JOEL BROCKNER A MANAGEMENT PROFESSOR AT COLUMBIA UNIVERSITY'S BUSINESS SCHOOL INATTENTION TO SURVIVORS IS ONE OF THE MAIN WAYS THAT THE DOWNSIZING PROCESS HAS BEEN MISMANAGED HE ASSERTS AT AMERICAN TELEPHONE & TELEGRAPH CO FOR EXAMPLE STRESSRELATED ILLNESSES FROM INSOMNIA TO HIGH BLOOD PRESSURE SOARED AMONG MIDDLE MANAGERS AFTER THE COMPANY SLASHED LARGE NUMBERS OF MANAGERIAL JOBS FOR THE FIRST TIME IN 1986 A FORMER OFFICIAL SAYS OF 250 MIDDLE MANAGERS STUDIED BY AT&T NEARLY HALF HAD MORE MARITAL STRAINS AFTER THE CUTBACKS A PENDING LAYOFF IS PROVING PARTICULARLY PAINFUL FOR ALLIANT TECHSYSTEMS INC AN EDINA MINN WEAPONS MAKER THAT HAS SHED NEARLY HALF OF ITS WORK FORCE SINCE 1990 LAST JANUARY IT ANNOUNCED THAT 1700 MORE PEOPLE WILL LOSE THEIR JOBS BY NEXT SPRING SINCE THEN ALLIANT SAYS IT HAS TREATED ABOUT 25 HEADQUARTERS EMPLOYEES FOR DISABLING PANIC ATTACKS ABOUT 75 OF THE PATIENTS WERE PEOPLE WHO WOULD KEEP THEIR JOBS SOME BECAME TOO FEARFUL TO LEAVE HOME AND OTHERS WERE HOSPITALIZED FOR SYMPTOMS THAT MIMICKED HEART ATTACKS WITHOUT ALLIANT'S EXTENSIVE COUNSELING PROGRAM FOR SURVIVORS WE'D BE SEEING GREATER NUMBERS OF PANIC ATTACKS SAYS CLINTON BERG MANAGER OF THE COMPANY'S EMPLOYEEASSISTANCE PROGRAM WITH THE PROGRAM HE ADDS PROUDLY WE HAVEN'T HAD ONE SUICIDE SURVIVING EMPLOYEES' MALAISE CAN PERSIST FOR MONTHS AND SOMETIMES WORSENS OVER TIME ABOUT 75 OF THE FORTUNE 500 CORPORATIONS HAVE BEEN AFFECTED BY LAYOFFSURVIVOR SYNDROME ESTIMATES DAVID NOER A VICE PRESIDENT OF THE CENTER FOR CREATIVE LEADERSHIP IN GREENSBORO NC AND AUTHOR OF A NEW BOOK ABOUT SURVIVORS THAT IS WHY MORE DOWNSIZED CONCERNS FIND EMBITTERED EMPLOYEES DAMAGING OFFICE COMPUTERS STEALING PROPERTY OR FLATTENING TIRES OF COMPANY CARS SAYS ANTHONY BARON A SAN DIEGO CONSULTANT AND SPECIALIST ON WORKPLACE VIOLENCE SOME LAYOFF SURVIVORS NO LONGER FEEL THE SAME SENSE OF LOYALTY TO THE CORPORATION HE SAYS SURVIVOR STRESS IS ALL TOO APPARENT AT JOSTENS LEARNING A UNIT OF JOSTENS INC WHICH MAKES CLASS RINGS YEARBOOKS AND OTHER SCHOOL SUPPLIES COFOUNDED BY A FORMER ENGLISH PROFESSOR JOSTENS LEARNING LONG PRIDED ITSELF ON ITS TIGHTKNIT INFORMAL FAMILY ATMOSPHERE IT WAS THE KIND OF PLACE WHERE PEOPLE PADDED ABOUT IN TSHIRTS AND JEANS WHERE THE FORMER CHIEF EXECUTIVE LIKED TO ZOOM AROUND THE COURTYARD ON A MOTORCYCLE WHERE PEOPLE SOMETIMES WORKED 15HOUR DAYS AND THEN HEADED OVER TO FANATICS A LOCAL BAR TO PLAY POOL WHERE AN ANNUAL HALLOWEEN COMPETITION WAS SO SPIRITED THAT ONE DEPARTMENT CONVERTED AN ENTIRE OFFICE INTO THE LIZARD LOUNGE AND CASINO RUN BY STAFFERS DRESSED AS THE DEAD ROCK STARS JIM MORRISON AND ELVIS PRESLEY BUT AFTER FOUR YEARS OF REVENUE GROWTH AVERAGING 27 A YEAR JOSTENS LEARNING CAREENED INTO AN UNEXPECTED REVENUE NOSEDIVE IN FISCAL 1993 IN PART BECAUSE OF SCHOOL SPENDING CUTS AND DELAYS IN COMPLETING A MERGER THE COMPANY WHICH CREATES SOFTWARE USED BY MORE THAN 9500 SCHOOLS HAD LITTLE CHOICE BUT TO RESORT TO LARGESCALE LAYOFFS AS BEST AS IT COULD JOSTENS LEARNING TRIED TO ASSUAGE AND CODDLE REMAINING EMPLOYEES IT EVEN SET UP A HOT LINE TO LET THEM VENT THEIR FRUSTRATIONS ANONYMOUSLY IF THEY WISHED TO MANAGERS ON THE OTHER END BUT IT DIDN'T ANTICIPATE THE DEPTH OR LENGTH OF THE DISLOCATION THE DISTRUST AND THE ANGER THAT FOLLOWED SAYS ILLUSTRATOR RICK ARAGON THE FAMILY SPIRIT IS PRETTY MUCH DEAD FOR A LOT OF PEOPLE IN THE INITIAL AFTERMATH OF THE LAYOFFS AS WAS EXPECTED WORK GROUND TO A HALT SUZANNE JOHNSON A 28YEAROLD CURRICULUM DESIGNER WHILED AWAY PART OF HER DAYS AT HER DESK COMPILING A MACABRE TALLY OF THE NAMES OF EVERY LAYOFF VICTIM SHE KNEW 72 IN ALL IF IT HAPPENED TO THEM WHY NOT ME SHE WOULD ASK HERSELF OVER AND OVER EVEN AFTER SEVERAL MONTHS THOUGH THE MALAISE PERSISTED EACH DAY MS JOHNSON REPORTED TO A WORK SPACE DESIGNED FOR 10 PEOPLE AND NOW HOME TO JUST THREE ABANDONED FILES AND PHOTOS OF BYGONE OFFICE PARTIES HAUNTED HER THE DETRITUS OF FORMER EMPLOYEES WAS CLEANED UP ONLY IN RECENT WEEKS IT WAS KIND OF BOMBED OUT SHE SAYS MAKING MATTERS WORSE HER OWN WORKLOAD SOARED PARTLY A RESULT OF HER WORK GROUP'S SHRINKING TO THREE FROM 16 HER TEMPER GREW SHORT AT HOME THE LITTLEST NUISANCES LIKE A STUBBORN LAUNDRYBOTTLE CAP WOULD PROMPT A STREAM OF INVECTIVE DURING THE 25MINUTE COMMUTE TO WORK THAT SHE SHARES WITH HER HUSBAND CRAIG SHE WOULD BLOW UP OVER WORK PROBLEMS IT USED TO BE THAT SHE ONLY OCCASIONALLY BECAME ANGRY ABOUT WORK HE SAYS NOW IT IS NEARLY DAILY AT THIS POINT SHE HAS MORE DIFFICULT DAYS THAN SHE USED TO IN RECENT MONTHS THE JOHNSONS HAVE TAKEN TO EATING OUT THREE OR FOUR TIMES A WEEK TWICE AS OFTEN AS SIX MONTHS AGO BECAUSE NOBODY FEELS LIKE COOKING MR JOHNSON SAYS SHE TENDS TO BE TIRED A LOT THEIR PLANTS UNWATERED AND NEGLECTED ARE WILTING MS JOHNSON'S RESPONSE IS SIMILAR TO THAT OF SOME OTHERS IN THE COMPANY'S PRODUCTDEVELOPMENT GROUP WHICH LOST 26 OF ITS 463 STAFF MEMBERS IN THE LAYOFF EDUARD SCHWAN A 33YEAROLD SENIOR SOFTWARE ENGINEER WHO LIKES TO WALK AROUND THE OFFICE IN HIS BARE FEET USED TO THINK NOTHING OF PUTTING IN LONG HOURS HE OCCASIONALLY WOULD EVEN WORK ROUND THE CLOCK TO MAKE SURE A PROJECT WAS FINISHED ON TIME NOT ANY MORE SINCE THE LAYOFF THERE IS MUCH MORE OF A NINETOFIVE ATTITUDE HE SAYS AROUND JOSTENS LEARNING THAT ATTITUDE HAS COME TO BE KNOWN AS MENTALLY CHECKED OUT MR SCHWAN CALLS IT THE GLAZED LOOK THE ATMOSPHERE ISN'T AS COLLEGIAL AS IT ONCE WAS EITHER DEPARTMENTS THAT ONCE ROUTINELY COOPERATED WITH EACH OTHER NO LONGER BOTHER TRYING AS EMPLOYEES EACH WATCH THEIR OWN BACKS SAYS MR SCHWAN PEOPLE HAVE DISTANCED THEMSELVES FROM EACH OTHER AND FROM UPPER MANAGEMENT AND FAR MORE EMPLOYEES THAN USUAL ARE QUITTING MANY SPEND SOME OF THEIR WORK HOURS FURTIVELY LOOKING FOR OTHER JOBS 37 WERE JOBHUNTING IN SEPTEMBER AN INTERNAL SURVEY FOUND SIXTEEN STAFFERS HAVE QUIT THE PRODUCTDEVELOPMENT GROUP SINCE JULY 1 COMPARED WITH NORMAL TURNOVER OF 10 TO 15 A YEAR ALL TOLD THE SURVIVORS' ANGST HAS TAKEN A TOLL ON JOSTENS LEARNING'S BUSINESS PRODUCTIVITY IN THE PRODUCTDEVELOPMENT GROUP DROPPED MARKEDLY DURING THE FIRST TWO MONTHS AFTER THE JOB CUTS AND REMAINS SLIGHTLY BELOW PREVIOUS LEVELS EVEN NOW SAYS RICHARD H KING THE GROUP'S CHIEF NOR HAS JOSTENS LEARNING REBOUNDED FROM ITS 8 REVENUE DECLINE DURING THE YEAR ENDED JUNE 30 REVENUE FOR THE FIRST QUARTER ENDED SEPT 30 WAS FLAT COMPARED WITH A YEAR AGO A SPOKESWOMAN SAYS THERE IS CONTINUED UNCERTAINTY IN PEOPLE'S MINDS MR KING CONCEDES WE MAY HAVE DONE SOME GOOD THINGS FOR SURVIVORS BUT WE HAVEN'T DONE IT ALL RIGHT HE ADDS THIS THING CALLED TRUST HAS BEEN DIMINISHED BECAUSE THE UNWRITTEN EMPLOYMENT RELATIONSHIP HAS BEEN VIOLATED HE SAYS THAT HE IS TRYING TO CUT THE SURVIVORS' WORKLOAD BUT HASN'T BEEN AS SUCCESSFUL AS HE HAD HOPED THE PRODUCTIVITY DECLINES HAVE COME EVEN AS SOME EMPLOYEES SWAMPED WITH EXTRA WORK TRY TO BUCKLE DOWN AND WORK HARDER THAN EVER AND CERTAINLY FOR SOME OF THEM THE CUTBACKS MAY LEAD TO CAREER ADVANCEMENT SINCE THE CORPORATE LADDER IS NOW LESS CLUTTERED RICHARD H SMITH WHO HEADS BASIC RESEARCH FOR THE PRODUCTDEVELOPMENT GROUP SAYS HIS 11 EMPLOYEES USED TO GO OUT TO LUNCH AND TALK ABOUT THEIR KIDS NOW THEY'RE WORKING THROUGH LUNCH CARY ANN CANNING A 31YEAROLD PROJECT MANAGER SAYS SHE IS ROUTINELY WORKING 11HOUR DAYS FOR TWO MONTHS AFTER THE LAYOFFS SHE WALKED AROUND WITH A KNOT IN HER STOMACH SHE BEGAN CHEWING HER NAILS DOWN TO THE QUICK AND BOUGHT A STAIRSTEPPER TO RELIEVE SOME STRESS DETERMINED TO SURVIVE SHE SAYS SHE IS COMMITTED TO PUTTING IN WHATEVER HOURS IT TAKES I WANT TO SEE THE COMPANY SUCCESSFUL AGAIN AND I'M WILLING TO WORK TOWARD THOSE GOALS STILL MANY EMPLOYEES END UP DEVOTING CONSIDERABLE TIME AND ENERGY NOT TO THEIR ASSIGNMENTS BUT TO GOSSIP EVERY MONTH THE OFFICE GRAPEVINE RUMBLES WITH SPECULATION THAT ANOTHER ROUND OF LAYOFFS IS IN THE WORKS AND EMPLOYEES TRY TO FATHOM WHO MIGHT BE HIT NEXT COMPANY OFFICIALS SAY NO ADDITIONAL CUTS ARE PLANNED BUT THEY ADMIT THE OVERHEATED SPECULATION HAS SAPPED PRODUCTIVITY JOSTENS LEARNING HAD TRIED HARD TO ALLEVIATE ITS SURVIVORS' ANGST ON THE DAY OF THE LAYOFFS DUBBED BLACK THURSDAY TEARFUL EMPLOYEES WERE URGED TO COPE WITH THEIR GRIEF BY HELPING THEIR DISMISSED COLLEAGUES PACK AND OFFERING THEM JOB LEADS OUTPLACEMENT COUNSELORS DRAKE BEAM MORIN INC GAVE MANAGERS WRITTEN TIPS FOR DEALING WITH THE SURVIVORS AMONG THE SUGGESTIONS SPEND TIME DAILY WITH EACH SUBORDINATE FOR SEVERAL WEEKS TO LEARN HOW THEY ARE DOING AT HOME AND AT WORK THE HIGHLY DETAILED DESCRIPTION DIDN'T HELP AT LEAST ONE EMPLOYEE WHO AFTER CALLING COLLEAGUES TO TELL THEM ABOUT A TERMINATIONNOTIFICATION MEETING SPENT A SOLID HOUR THROWING UP IMMEDIATELY AFTER THE LAYOFFS JOSTENS LEARNING SET UP ITS VENTING HOT LINE AND LATER CREATED ANOTHER HOT LINE STILL OPERATIONAL THAT GIVES RECORDED UPDATES ON DISCHARGED EMPLOYEES' SUCCESSES AT FINDING NEW JOBS EARLY NEXT YEAR DRAKE BEAM IS EXPECTED TO CONDUCT SEPARATE CHANGEMANAGEMENT WORKSHOPS FOR SOME JOSTENS LEARNING EXECUTIVES SUPERVISORS AND RANKANDFILE STAFF MEMBERS IN A BID TO LEARN HOW BETTER TO HANDLE TRAUMATIC SITUATIONS LIKE LAYOFFS MANY MAJOR BUSINESSES NOW ARE TAKING A SIMILAR ROUTE SCOTT PAPER CO HONEYWELL INC PACIFIC TELESIS GROUP PHILIP MORRIS COS' KRAFT GENERAL FOODS INC PACIFIC GAS & ELECTRIC CO AND OTHERS ALL HAVE HELD SEMINARS RECENTLY TO HELP SURVIVORS COPE WITH CHANGE MORE THAN HALF OF US OUTPLACEMENT CONCERNS OFFER SUCH PROGRAMS UP FROM A HANDFUL FIVE YEARS AGO TOP MANAGEMENT IS WAKING UP TO THE MISCONCEPTION THAT REMAINING PEOPLE ARE HAPPY TO HAVE A JOB SAYS ROBERT LEWIS A DRAKE BEAM EXECUTIVE VICE PRESIDENT BUT ALL THE EFFORTS SO FAR HAVE DONE LITTLE TO HELP THE SURVIVORS AT JOSTENS LEARNING THEIR PAIN AND PUZZLEMENT SEEM ETCHED ON THE LONG LINED FACE OF J BURL HOGINS A 57YEAROLD FORMER ENGLISH PROFESSOR WHO COFOUNDED ONE OF TWO COMPANIES THAT WAS COMBINED TO CREATE JOSTENS LEARNING IN 1989 LANKY AND BEARDED HE BEARS MORE THAN A PASSING RESEMBLANCE TO LINCOLN HE IS STILL CONSIDERED THE COMPANY'S HEART AND SOUL FOR WEEKS AFTER THE LAYOFFS WHICH WEREN'T HIS DECISION MR HOGINS WATCHED MANY EMPLOYEES NERVOUSLY HANGING AROUND THE WATER COOLER ALL OF THE COMPANY'S CAREFULLY PLANNED GUIDELINES AND HOT LINES DIDN'T SEEM TO MAKE A BIT OF DIFFERENCE TO THIS GROUP OF FRIGHTENED PEOPLE DO YOU THINK I'M SECURE SOME KEPT ASKING HIM DO YOU THINK I'LL HAVE ENOUGH WORK TO BE KEPT ON THE ATMOSPHERE WEIGHED HEAVILY ON MR HOGINS FOR ALMOST TWO MONTHS AFTER THE LAYOFFS HE LAY AWAKE NIGHTS HIS STOMACH WAS OFTEN UPSET AND HE HAD TO GUZZLE ANTACIDS I WOULD COME IN HERE WITH A THOUSAND THINGS TO DO BUT NOT BE ABLE TO DO THEM HE SAYS INSTEAD HE TOOK TO WANDERING THE HALLS AIMLESSLY EVEN NOW LEANING BACK IN A ROCKING OFFICE CHAIR A BREATHTAKING MOUNTAIN VIEW SPREADING OUT BEHIND HIM HE FEELS TREMENDOUS GUILT HE SAYS UNCONSCIOUSLY HE STRETCHES OUT ONE HAND AND BEGINS POUNDING RHYTHMICALLY ON HIS CHEST ANY TIME YOU LAY OFF PEOPLE HE SAYS YOU HAVE FAILED SEE RELATED LETTER LETTERS TO THE EDITOR RISKY BUSINESS WSJ DEC 27 1993 9312060049 YY93 MM12 9312270143 931227 GM AND FORD PLAN TO RECALL A TOTAL OF 848800 VEHICLES DETROIT GENERAL MOTORS CORP AND FORD MOTOR CO SAID THEY ARE RECALLING A COMBINED TOTAL OF ABOUT 848800 CARS AND TRUCKS IN FOUR SEPARATE RECALLS GM SAID IT IS RECALLING ABOUT 504000 1992MODEL AND 1993MODEL CHEVROLET CAVALIERS CORSICAS AND BERETTAS BUICK CENTURYS AND OLDSMOBILE CUTLASS CIERAS WITH DEFECTIVE ENGINE GASKETS GM SAID THE TORN GASKET MAY BLOCK THE FUELINJECTION SPRAY RESULTING IN ROUGH ENGINE OPERATION ALL THE CARS INVOLVED HAVE A 22LITER L4 ENGINE MEANWHILE FORD ANNOUNCED RECALLS INVOLVING THREE DIFFERENT MODELS TOTALING 344800 VEHICLES IN THE FIRST ACTION FORD SAID IT IS RECALLING 319000 OF ITS 1988MODEL FORD ESCORTS WITH 19 LITER ENGINES TO REPLACE CATALYST ASSEMBLIES TO MEET EMISSIONS GUIDELINES FORD SAID IT ALSO WILL RECALL 22000 OF ITS 199293MODEL FORD HEAVY TRUCKS AND BUSES EQUIPPED WITH DIESEL ENGINES WITH INLINE FUELINJECTION PUMPS BECAUSE OF DEFECTIVE SPRINGS IN THE THROTTLE LINKAGE THAT COULD BREAK AND CAUSE THE DRIVER TO LOSE THE ABILITY TO CONTROL THE SPEED OF THE VEHICLE THE FINAL RECALL INVOLVES ABOUT 3800 OF ITS 1993MODEL CAPRI VEHICLES WITH AUTOMATIC TRANSMISSIONS THE AUTO MAKER SAID A FAULTY HOSE AND CONNECTION MIGHT CAUSE TRANSMISSION FLUID TO LEAK INCREASING THE RISK OF AN UNDERHOOD FIRE FORD SAID IT IS AWARE OF 19 INCIDENTS RESULTING IN 17 ENGINE COMPARTMENT FIRES FORD SAID THERE HAVE BEEN NO REPORTS OF ACCIDENTS OR INJURIES RELATED TO ANY OF THE RECALLS BOTH GM AND FORD SAID THEY WILL NOTIFY CUSTOMERS BY MAIL TO TAKE THEIR VEHICLES TO A DEALER FOR REPAIRS WHICH WILL BE MADE AT NO CHARGE TO THE CUSTOMER 9312270142 931227 GEMINI APPEALS RULING LETTING CANADIAN AIR OPT OUT OF CONTRACT TORONTO GEMINI GROUP SAID IT ASKED CANADA'S FEDERAL COURT OF APPEAL TO PREVENT CANADIAN AIRLINES INTERNATIONAL FROM OPTING OUT OF A CONTRACT UNDER WHICH GEMINI PROVIDES IT WITH COMPUTER SERVICES CANADA'S COMPETITION TRIBUNAL AN ANTITRUST BODY RULED LAST MONTH THAT CANADIAN AIRLINES COULD PULL OUT OF GEMINI IN ORDER TO STAY FINANCIALLY HEALTHY AMR CORP BASED IN FORT WORTH TEXAS HAS AGREED TO INVEST 246 MILLION CANADIAN DOLLARS US1842 MILLION IN THE AIRLINE IF IT SWITCHES ITS BUSINESS TO AMR'S SABRE SYSTEM GEMINI SAID IT APPEALED THE ANTITRUST RULING ON THE GROUND THAT GEMINI ISN'T THE CAUSE OF CANADIAN AIRLINES' FINANCIAL PROBLEMS AND SHOULDN'T BE REQUIRED TO PAY THE PRICE FOR THOSE PROBLEMS THE TORONTO COMPUTERSEVICES COMPANY IS JOINTLY OWNED BY MONTREALBASED AIR CANADA UAL CORP OF CHICAGO AND PWA CORP CALGARY ALBERTA WHICH OWNS CANADIAN AIRLINES A PWA SPOKESWOMAN SAID GEMINI'S APPEAL WASN'T A SURPRISE SHE SAID AMR RECENTLY POSTPONED BY SIX MONTHS A DEC 31 DEADLINE FOR CLOSING ITS AGREEMENT WITH PWA TO ALLOW TIME FOR SUCH APPEALS TO BE HEARD THE GOVERNMENT OF ALBERTA MATCHED AMR'S DEADLINE EXTENSION YESTERDAY BY EXTENDING THE AVAILABILITY OF A C50 MILLION LOAN GUARANTEE TO PWA UNTIL JUNE 30 THE ALBERTA GUARANTEE IS PART OF A C120 MILLION INTERIM FINANCING PACKAGE FOR PWA FROM THE CANADIAN FEDERAL GOVERNMENT AND TWO PROVINCES INTENDED TO HELP THE COMPANY CLOSE ITS TRANSACTION WITH AMR 9312270141 931227 S&P UPGRADES RATING ON PHILADELPHIA BONDS NEW YORK STANDARD & POOR'S CORP RAISED ITS RATINGS ON PHILADELPHIA'S GENERAL OBLIGATION BONDS PUSHING THE CITY'S RATINGS A STEP CLOSER TOWARD INVESTMENTGRADE LEVEL S&P SAID IT UPGRADED ABOUT 105 BILLION OF OUTSTANDING UNINSURED DEBT TO DOUBLEB FROM SINGLEB REFLECTING THE CITY'S ABILITY TO BALANCE ITS BUDGET WITHOUT OUTSIDE AID THE RATINGS AGENCY SAID RESULTS OF A PRELIMINARY 1993 BUDGET SUGGEST THAT PHILADELPHIA WILL REPORT A SMALL 3 MILLION SURPLUS FOR THE YEAR IN ADDITION S&P DESCRIBED THE OUTLOOK FOR THE CITY'S DEBT AS POSITIVE THERE'S A GOOD CHANCE THAT THE DEBT WILL BE UPGRADED TO INVESTMENTGRADE LEVEL WITHIN THE NEXT YEAR TO THREE YEARS SAID RICHARD LARKIN OF S&P PHILADELPHIA HAS BEEN PLAGUED BY LARGE BUDGET DEFICITS IN THE PAST AND THE CITY'S ECONOMY IS FAR FROM PERKING UP ECONOMICALLY NOTHING HAS CHANGED MR LARKIN SAID HE NOTED THAT PHILADELPHIA'S TAX BURDEN REMAINS EXTREMELY HIGH AND THAT THE CITY NEEDS MAJOR INFRASTRUCTURE IMPROVEMENTS BUT THE CITY HAS SIGNIFICANTLY STRENGTHENED ITS FINANCES AND COULD POST A SMALL BUT MANAGEABLE DEFICIT IN 1994 HE ADDED PHILADELPHIA HAS SUFFERED REPEATED CASH CRISES AND HAS BEEN HURT IN ITS ABILITY TO RAISE MONEY IN THE FINANCIAL MARKETS SINCE 1990 AFTER ITS BOND RATINGS FELL BELOW INVESTMENTGRADE LEVELS FURTHER RATING IMPROVEMENT WILL DEPEND ON THE CITY'S ABILITY TO ENACT FISCAL REFORMS AND CONTINUE TO BALANCE ITS BUDGET S&P SAID 9312270140 931227 ONEX CORP INVESTORS PLAN SECONDARY OFFER OF JOHNSTOWN AMERICA TORONTO ONEX CORP SAID IT AND A GROUP OF PRIVATE INVESTORS PLAN A SECONDARY OFFERING OF STOCK IN JOHNSTOWN AMERICA INDUSTRIES INC THAT WILL RAISE THE PUBLICLY HELD INTEREST IN JOHNSTOWN TO 74 FROM 46 CURRENTLY ONEX SAID THE OFFERING OF 2750000 JOHNSTOWN SHARES REPRESENTS 281 OF THE COMPANY'S SHARES OUTSTANDING INCLUDED IN THE SALE ARE 1370000 JOHNSTOWN SHARES OWNED BY ONEX FOR WHICH THE COMPANY SAID IT EXPECTS TO RECEIVE ABOUT 45 MILLION CANADIAN DOLLARS US337 MILLION BASED ON CURRENT MARKET PRICES AFTER THE OFFERING ONEX SAID IT WILL CONTINUE TO HOLD 7 OF JOHNSTOWN WHICH MAKES RAILROAD FREIGHT CARS AND HIGHWAY TRAILERS IN JOHNSTOWN PA ONEX AN INDUSTRIAL HOLDING COMPANY BASED IN TORONTO PAID C89 MILLION IN 1991 FOR A 54 STAKE IN JOHNSTOWN A FORMER BETHLEHEM STEEL CORP UNIT THE INVESTMENT HAS SINCE APPRECIATED TO C70 MILLION ONEX SAID INCLUDING CASH PROCEEDS FROM VARIOUS SECONDARY SHARE OFFERINGS AND THE MARKET VALUE OF ITS REMAINING HOLDING THE OFFERING EXPECTED TO CLOSE IN FEBRUARY WILL BE COMANAGED BY SALOMON BROTHERS AND DONALDSON LUFKIN & JENRETTE IN NASDAQ STOCK MARKET TRADING THURSDAY JOHNSTOWN CLOSED AT 2525 DOWN 75 CENTS 9312270139 931227 HAWAIIAN AIRLINES TRAFFIC HONOLULU HAWAIIAN AIRLINES A UNIT OF HAL INC SAID IT FLEW 2583 MILLION REVENUE PASSENGER MILES IN NOVEMBER AN INCREASE OF 1 FROM 2559 MILLION IN NOVEMBER 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER CARRIED ONE MILE 9312270138 931227 FIBREBOARD MAKES 3 BILLION SETTLEMENT OVER ASBESTOS CLAIMS WALNUT CREEK CALIF FIBREBOARD CORP SAID IT ENTERED INTO DEFINITIVE AGREEMENTS WITH ITS INSURERS AND WITH ATTORNEYS FOR ASBESTOS PERSONALINJURY CLAIMANTS FOR A 3 BILLION SETTLEMENT OF ASBESTOSRELATED CLAIMS AGAINST THE COMPANY TERMS OF THE SETTLEMENTS WERE ANNOUNCED IN AUGUST THE AGREEMENTS WHICH REQUIRE COURT APPROVAL WOULD RESOLVE FIBREBOARD'S ASBESTOS LIABILITIES WITHIN AVAILABLE INSURANCE AND EXISTING RESERVES FIBREBOARD SAID COURT ACTION IS EXPECTED BY MID1994 ALTHOUGH FINAL APPROVAL COULD BE DELAYED BY AN ADDITIONAL YEAR BESIDES PLAINTIFF ATTORNEYS THE SETTLEMENT AGREEMENTS WERE SIGNED BY CONTINENTAL CASUALTY CO A UNIT OF CHICAGOBASED CNA FINANCIAL CORP AND PACIFIC INDEMNITY CO A UNIT OF CHUBB CORP BASED IN WARREN NJ 9312270137 931227 INTERNATIONAL RABIN HOPES USSYRIAN SUMMIT PROVIDES A SPUR TO MIDEAST TALKS BY ROBERT S GREENBERGER AND AMY DOCKSER MARCUS STAFF REPORTERS OF THE WALL STREET JOURNAL TEL AVIV ISRAELI PRIME MINISTER YITZHAK RABIN IS LOOKING FOR NEXT MONTH'S USSYRIAN SUMMIT MEETING IN GENEVA TO YIELD CHANGES THAT HE SAYS ARE NEEDED TO IMPROVE THE ENVIRONMENT FOR MIDDLE EAST PEACE TALKS IN AN INTERVIEW FRIDAY MR RABIN OUTLINED THREE AREAS WHERE HE WOULD LIKE THE US TO PRESS DAMASCUS FIRST HE WANTS SYRIA TO SPELL OUT THE DETAILS OF THE KIND OF PEACE IT IS READY TO OFFER ISRAEL SECOND HE WANTS SYRIA TO LOOSEN ITS GRIP ON LEBANON SO THAT NATION CAN DEPLOY ITS ARMY TO MAINTAIN ORDER AND CONTROL RADICAL GROUPS THAT ATTACK ISRAEL FINALLY MR RABIN WANTS SYRIAN PRESIDENT HAFEZ AL ASSAD TO PUT A LID ON THE RADICAL PALESTINIAN GROUPS WHOSE LEADERS RESIDE IN DAMASCUS MR RABIN ALSO MAINTAINED A TOUGH STANCE ON CURRENT NEGOTIATIONS WITH PALESTINIANS OVER IMPLEMENTING AN AGREEMENT UNDER WHICH ISRAEL WOULD TURN OVER GOVERNANCE OF THE OCCUPIED GAZA STRIP AND WESTBANK TOWN OF JERICHO BUT HE APPEARED WILLING TO OFFER AN INDUCEMENT TO SPEEDING UP THE PROCESS SAYING THAT IF DIFFERENCES ARE RESOLVED ISRAEL COULD COMPLETE ITS PULLOUT FROM THOSE AREAS IN THREE MONTHS RATHER THAN THE FOUR MONTHS CALLED FOR IN THE SEPT 13 ACCORD WITH THE PALESTINE LIBERATION ORGANIZATION SITTING IN HIS MODEST OFFICE HERE IN THE DEFENSE MINISTRY MR RABIN HELD THE POST OF DEFENSE MINISTER THE ISRAELI LEADER LOOKED TIRED AS HE PUFFED ON KENT CIGARETTES HE HAS BEEN ASSAULTED BY MOUNTING CRITICISM OF THE ACCORD BECAUSE OF A SURGE IN VIOLENCE IN THE TERRITORIES ONLY HOURS BEFORE LAST FRIDAY'S INTERVIEW A SENIOR ISRAELI MILITARY OFFICER WAS KILLED IN AN AMBUSH IN GAZA WHEN MR RABIN VISITED GAZA A WEEK EARLIER HE HAD BEEN BRIEFED BY THE OFFICER IT'S LIKELY THAT MR RABIN ALSO WON'T HAVE ALL HIS EXPECTATIONS REALIZED DURING NEXT MONTH'S SUMMIT MEETING BETWEEN PRESIDENT CLINTON AND MR ASSAD RECENTLY SYRIA'S STATECONTROLLED NEWSPAPERS HAVE SAID THAT THE SESSION BOLSTERS MR ASSAD'S STATUS AS THE ARAB WORLD'S LEADING STATESMAN INDEED THE EXTENSIVE COVERAGE MADE IT SOUND LIKE MR ASSAD ONLY HAD TO SHOW UP FOR THE MEETING TO BE A SUCCESS IN SYRIA MEANWHILE MR RABIN ISN'T BEING ANY MORE FORTHCOMING THAN MR ASSAD FOR MONTHS SYRIA HAS SAID IT WON'T DESCRIBE THE EXTENT OF THE PEACE IT WILL OFFER UNTIL ISRAEL AGREES TO LEAVE THE GOLAN HEIGHTS WHICH IT OCCUPIED IN 1967 ISRAEL IS WAITING FOR SYRIA TO MAKE THE FIRST MOVE BEFORE IT PROVIDES DETAILS ABOUT ITS PROMISED WITHDRAWAL DURING THE INTERVIEW THE CAUTIOUS MR RABIN SAID I WAS THE FIRST PRIME MINISTER OF ISRAEL THAT SAID I'M READY FOR A WITHDRAWAL OF ISRAELI ARMED FORCES ON THE GOLAN HEIGHTS BUT HE ADDED WHAT I WILL NOT NEGOTIATE IS THE GEOGRAPHIC DIMENSIONS BEFORE I KNOW FOR WHAT KIND OF PEACE MR RABIN MADE CLEAR THAT HE BELIEVES THE BEST NEGOTIATING IS DONE IN SECRET I WOULD NOT DENY THAT WE BELIEVE THAT QUIET MEETINGS PAVED THE ROAD FOR ANY BREAKTHROUGH IN THE RELATIONS BETWEEN AN ARAB PARTNER AND ISRAEL HE SAID CITING SECRET TALKS IN 1977 WITH EGYPT AND SECRET MEETINGS THIS YEAR BETWEEN ISRAELIS AND THE PLO MR RABIN SAYS SECRECY ENCOURAGES A FREER EXCHANGE BETWEEN THE TWO SIDES AWAY FROM THE LIMELIGHT OF THE REGULAR TALKS THAT HAVE BEEN HELD FOR TWO YEARS IN WASHINGTON AND AWAY FROM US OFFICIALS WHO ACT AS BROKERS WHATEVER YOU RAISE VIA THE UNITED STATES YOU BECOME COMMITTED TO HE SAYS MR RABIN ALSO PREFERS SECRET DIPLOMACY BECAUSE THERE IS MOUNTING RESISTANCE TO GIVING BACK THE GOLAN IN ISRAEL WHERE THERE ARE PLACARDS AND BANNERS EVERYWHERE SAYING THE NATION IS WITH THE GOLAN MEANWHILE ISRAELIPLO TALKS ARE TO RESUME TODAY IN EGYPT AMID REPORTS OF SOME NARROWING OF DIFFERENCES OVER THE SIZE OF THE SELFRULE AREA AROUND JERICHO AND CONTROL OF CROSSING POINTS FROM EGYPT TO GAZA AND FROM JORDAN TO JERICHO MR RABIN WAS SURPRISED WHEN PLO CHAIRMAN YASSER ARAFAT INSISTED ON CONTROL OF THE BORDER CROSSINGS WHICH THE ACCORD CLEARLY SAYS REMAINS FOR THE TIME BEING IN ISRAEL'S HANDS HE SAID FRIDAY THAT ISRAEL WAS WILLING TO INVOLVE THE PALESTINIANS AS LONG AS ANY COMPROMISE ADHERES TO THE SPIRIT AND THE LETTER OF THE ACCORD AND PROTECTS ISRAEL'S SECURITY NEEDS DESPITE THE HIGH HOPES RAISED BY THE SEPT 13 ACCORD WHICH WAS SIGNED ON THE WHITE HOUSE LAWN MR RABIN MAINTAINS HE HAS HAD NO ILLUSIONS HE RECOUNTED THAT BEFORE THE WHITE HOUSE CEREMONY BEGAN HE TURNED TO MR ARAFAT AND SAID IT'S GOING TO BE A DIFFICULT MISSION AND MR ARAFAT RESPONDED I KNOW THEREFORE AT LEAST I CAN PROVE THAT I DIDN'T HAVE ANY EUPHORIA MR RABIN SAID 9312270136 931227 LEISURE & ARTS TELEVISION DRIVEN YOUNG ADULTS TROUBLED TEENS BY DOROTHY RABINOWITZ EVERY SO OFTEN IT COMES TO PEOPLE IN THE TVWATCHING BUSINESS THAT THEY OUGHT TO LOOK AT SOME DAYTIME SERIALS THESE ARE AFTER ALL PROGRAMS ALL MY CHILDREN AS THE WORLD TURNS WHOSE FANS ARE SO RABID THAT ANY NETWORK PREEMPTION IS SURE TO BRING DOWN AN AVALANCHE OF PROTESTING PHONE CALLS THERE IS SOME DOUBT INDEED THAT EVEN A BULLETIN ANNOUNCING THAT THE NATION WAS AT WAR WOULD SUFFICE TO FORESTALL CALLS FROM IRATE PROGRAM FANS SOME YEARS AGO IN A HOSPITAL FOR THE AGED WHEN A PATIENT'S CONDITION DETERIORATED IN A SUDDEN AND DRAMATIC WAY A GREAT DEAFENING CLAMOR WENT UP ALL OVER THE FLOOR AS PATIENTS CALLED FOR THE NURSES BUT THE NURSES AND AIDES WERE BUSY ELSEWHERE IN THE RECREATION ROOM NAMELY WHERE THEY WERE CLUSTERED AROUND THE TELEVISION IMMERSED IN A DAYTIME SERIAL ABOUT A HOSPITAL STILL THE RESOLVE TO LOOK AT DAYTIME SOAPS DOES COME AND VERY SOON GOES IT'S NO NEWS THAT THE WRITERS OF THE SOAPS ARE IN THE BUSINESS OF PRODUCING DIALOGUE WHOSE SOLE AIM IS TO KEEP VIEWERS ABREAST OF THE SHOW'S LABYRINTHINE PLOT LINE THIS THEY HAVE IN COMMON WITH THE REPORTER STARS OF WASHINGTON WEEK IN REVIEW A PROGRAM IN WHICH JOURNALISTS APPEAR TO CONVERSE AND EXCHANGE IDEAS BUT AS ANY VIEWER RECOGNIZES AN EXTRAORDINARILY LARGE PORTION OF THIS EXPERT EXCHANGE CONSISTS OF A SUMMARY OF EVENTS PUNDIT A WELL THE PRESIDENT WENT INTO THE ROSE GARDEN AND MADE A SPEECH PUNDIT B EXACTLY RIGHT I'D AGREE WITH THAT THEN HE HAD TO CUT THE SPEECH SHORT PUNDIT C NO DOUBT ABOUT IT BUT THEN HIS PRESS SECRETARY SCHEDULED ANOTHER MEETING WITH REPORTERS GIVEN THE CURRENT MARITAL AND LEGAL DRAMA IN WHICH THE FIRST COUPLE NOW STAR IT IS OF COURSE PROBABLY ONLY FITTING THAT A TALK SHOW ABOUT GOINGSON IN WASHINGTON SHOULD BEAR SOME RESEMBLANCE TO THE STRUCTURE OF A DAYTIME SOAP IN ANY EVENT AFTER FIVE MINUTES OF SOAP DIALOGUE DIXIE SAID OPAL ADMITTED THAT BROOKE SAID SHE DIDN'T USE BIRTH CONTROL ABC'S ALL MY CHILDREN THE YEN TO SIT THROUGH ANY MORE OF THESE SHOWS VANISHES IT MAY BE THE LATENESS OF THE HOUR BUT MATTERS ARE VERY DIFFERENT AS REGARDS A CERTAIN NIGHTTIME SERIAL PRODUCED BY FOX THE SHOW MELROSE PLACE WEDNESDAYS 910 PM HAS CAST AN INEXPLICABLE SPELL OVER VIEWERS OF ALL AGES THIS SEASON OR PERHAPS NOT SO INEXPLICABLY MELROSE PLACE IS A WORLD WHERE HEARTS BREAK AND MEND IN A TRICE AND WHERE NOBODY IS EVER UNHAPPY FOR MORE THAN THE 10 MINUTES IT TAKES TO FIND SOMEBODY NEW TO LOVE OR GO BACK TO SOMEBODY OLD BUT NEITHER THIS NOR THE FACT THAT ITS CAST AND STYLE ARE ALTOGETHER SUPERIOR TO THE SIZZLING YOUTH SITCOM PRECEDING IT THE IRREDEEMABLY TORPID BEVERLY HILLS 90210 ALTOGETHER EXPLAINS THE APPEAL OF THE SHOW THE SIMPLICITY OF THE CONCEPT DOESN'T HURT MELROSE PLACE IS WHERE MOST OF THE KEY CHARACTERS THE BRIGHT THE BEAUTIFUL AND THE BRAWNY LIVE CLUSTERED TOGETHER IN AN APARTMENT COMPLEX WHERE THEY SHARE DREAMS SORROWS AND BEDS BUT THEIR LIVES ARE ABOUT MORE THAN ROMANTIC ENTANGLEMENTS THESE MUST FOR CERTAIN BE THE BUSIEST MOST AMBITIOUS TWENTYSOMETHING STRIVERS TO POP UP IN AMERICAN TELEVISION WHAT GIVES THIS DARREN STAR/AARON SPELLING PRODUCTION ITS CHARM BRITTLE THOUGH IT MAY BE IS THE WAY THE PROGRAM CAPTURES THE TONE AMBITION AND CAREERISM OF YOUNG WOMEN IN THE WORKPLACE TODAY THIS IS A SHOW ONE COULD GUESS WHOSE STRENGTH LIES IN THE WAY IT MANAGES TO MESH STANDARD SEX AND ROMANCE WITH A FAR HEFTIER AND MUCH MORE COMPELLING THEME AND CONCEIVABLY IN OUR TIMES A FAR DEEPER PASSION NAMELY JOBS SUCCESS CAREERS SEE ALL THE BEAUTIFUL YOUNG FLY AROUND THE OFFICE AND LOSE SLEEP OVER THEIR PROJECTS THEIR DEADLINES THEIR STATUS IN THE ORGANIZATION AGAIN AND AGAIN THE LUST FOR SUCCESS TAKES PRECEDENCE OVER ROMANCE THIS IS SCARCELY TO SAY THERE IS ANY LACK OF CARRYINGSON BUT ONE WAY OR ANOTHER CAREER IS THE REAL ROMANCE HERE ALISON COURTNEY THORNESMITH DOES SOMETHING WITH ADS AND WHILE WORKING ON A PROJECT MAKES A BIG IMPRESSION ON STEVE A COMPUTER WHIZ PARKER STEVENSON ROLLING IN MONEY WHO PROMPTLY FALLS IN LOVE WITH HER STEVE IS SOMETHING OF A RARITY IN PRIMETIME A LUXURYLOVING MILLIONAIRE WHO HAS SO FAR AT LEAST SHOWN NO SIGNS OF INVOLVEMENT IN MACHINATIONS AGAINST WIDOWS AND ORPHANS PLOTS TO HIDE TOXIC WASTE POISON THE ENVIRONMENT ETC ETC ONE CAN FIND HARDLY A THING WRONG WITH HIM EXCEPT TO BE SURE A PROFOUNDLY EERIE BRUSH CUT WHATEVER THE FLAWS OF THESE YOUNG DYNAMOS NICENESS IS ENDEMIC AROUND MELROSE PLACE EVEN SNIPPY AMANDA PLAYED WITH REGAL POISE BY HEATHER LOCKLEAR HAS HER SUNNY SIDE THERE IS IN ADDITION A CATEGORY OF 100PURE GOODNESS AN HONOR RESERVED FOR THE SHOW'S ONE HOMOSEXUAL CHARACTER NICELY PLAYED BY DOUG SAVANT A SOCIAL WORKER THIS CHARACTER IS A PERSON OF SUCH RADICAL SAINTLINESS ONE WONDERS HOW HE CAN MAKE HIS WAY THROUGH THIS DARK WORLD THE WRITING HAPPILY SHOWS AN OCCASIONAL FLASH OF SNEAKY HUMOR THAT IS THERE ARE TIMES WHEN THE SCRIPT HAS SUCH AN AIR OF UNRESTRAINED LUDICROUSNESS THAT IN THIS SEASON OF MAGNANIMITY AND HOPE IT IS IMPOSSIBLE TO IMAGINE THE LINES COULD HAVE BEEN WRITTEN SERIOUSLY THE SHOW'S ONE REAL ROTTER MICHAEL CRIPPLED IN AN ACCIDENT AT ONE POINT FALLS HELPLESSLY TO THE FLOOR AND ASKS THE TARTLET WHO IS BESOTTED WITH HIM FOR HELP WOULD YOU GET ME OFF THE FLOOR ALREADY MICHAEL BEGS SHE WANTS TO TALK SHE TELLS HIM HE WRITHING ON THE FLOOR I NEED MY MEDICINE SHE I WANTED TO BE THERE IN YOUR TIME OF NEED YOU REALLY HURT ME HE I THINK I'M HAVING A SPASM IN DUE TIME THE DREADFUL MICHAEL GETS LIFTED OFF THE FLOOR EXPECT NO TRAGIC SENSE OF LIFE IN OR AROUND MELROSE PLACE ONLY MISTAKES MISREAD MOTIVES REPENTANCE AND FUN FOR A DOSE OF REAL DISORDER AND EARLY SORROW TRY THE AFTERSCHOOL SPECIAL COMING UP IN A FEW WEEKS JAN 27 ON ABC TITLED JACQUI'S DILEMMA NOW HERE ARE YOUNG WOMEN IN TROUBLE WITH BABIES AT 15 AND 16 OR PREGNANT WHETHER JACQUI DECIDES TO HAVE THE CHILD OR ABORT IT WE NEVER LEARN BUT US SURGEON GENERAL JOYCELYN ELDERS IS HERE IN A CAMEO APPEARANCE TO CHARGE ENERGETICALLY THAT THIS SOCIETY HAS FALLEN IN LOVE WITH FETUSES THE FILM'S LARGER AND USEFUL POINT IS THAT SINGLE PARENTHOOD FOR YOUNG TEENS IS A HARSH AND BITTER TRAP THE YOUNG GIRLS SEEN HERE IN VARIOUS STAGES OF FEAR AND DEPRESSION UNDERSCORE THE POINT TELLINGLY WHO WATCHING THESE CHILDREN TRUNDLING THEIR BABIES AROUND IN GRIM RESIGNATION OR HEARING THEM CHATTER ABOUT THEIR SEX LIVES AND THEIR CONDOMS WOULD NOT PREFER THE GOLDEN SERENITY OF MELROSE PLACE 9312270135 931227 TECHNOLOGY BERKELEY AND DELRINA SETTLE LEGAL BATTLE OVER SOFTWARE PARODY BERKELEY CALIF BERKELEY SYSTEMS INC AND DELRINA CORP SAID THEY SETTLED A CLOSELY WATCHED LEGAL BATTLE OVER DELRINA'S PARODY OF BERKELEY'S POPULAR SCREENSAVER PROGRAM TERMS OF THE SETTLEMENT WEREN'T DISCLOSED BUT TORONTOBASED DELRINA SAID IT HAD RECALLED MORE THAN 20000 COPIES OF ITS OPUS 'N BILL SCREENSAVER PROGRAM AND MODIFIED THE PROGRAM SO THAT IT WOULDN'T VIOLATE BERKELEY'S COPYRIGHTS BERKELEY A CLOSELY HELD COMPANY BASED HERE SUED DELRINA FOR COPYRIGHT INFRINGEMENT BECAUSE ITS OPUS 'N BILL PROGRAM INCLUDED AN ANIMATED CHARACTER THAT SHOT DOWN CARTOONS OF FLYING TOASTERS A HALLMARK IMAGE ASSOCIATED WITH AFTER DARK BERKELEY'S BESTKNOWN PRODUCT DELRINA MAINTAINED THAT ITS PRODUCT WAS A PARODY PROTECTED BY THE FIRST AMENDMENT BUT A FEDERAL JUDGE IN SAN FRANCISCO IN OCTOBER SIDED WITH BERKELEY IN PART BECAUSE SALES OF DELRINA'S PRODUCT COULD TAKE SALES FROM BERKELEY'S DELRINA MODIFIED ITS PROGRAM TO SHOW TOASTERS PROPELLED WITH HELICOPTERTYPE ROTOR BLADES INSTEAD OF WINGS IN ADDITION A DELRINA SPOKESMAN COMPANY SAID IT REMOVED A CARICATURE OF MICROSOFT CORP CHAIRMAN WILLIAM GATES THAT ALSO MIGHT BE DEEMED A COPYRIGHT INFRINGEMENT SCREENSAVER PROGRAMS ARE USED TO PROTECT PERSONALCOMPUTER MONITORS THAT ARE LEFT ON THEY DISPLAY AN IMAGE THAT MOVES CONTINUOUSLY A STATIC IMAGE CAN BE BURNED ONTO COMPUTER SCREENS 9312270134 931227 MAERSK TO BUY BOEING JETS SEATTLE BOEING CO SAID MAERSK AIR THE DANISH INDEPENDENT AIRLINE WILL BUY TWO BOEING 737300 AIRCRAFT FOR 72 MILLION THE PLANES ARE SCHEDULED FOR DELIVERY IN SPRING 1995 BOEING ALSO SAID MAERSK STRUCK A PRELIMINARY AGREEMENT EARLIER THIS MONTH WITH BOEING'S COMMERCIAL AIRPLANE GROUP UNIT FOR AT LEAST SIX 737300XS PLUS TENTATIVE PLANS FOR ANOTHER SIX BOEING SAID IT EXPECTS THE FINAL AGREEMENT WHICH WOULD MAKE MAERSK THE FIRST EUROPEAN AIRLINE TO PUT THE NEW JET INTO SERVICE TO BE SIGNED EARLY NEXT YEAR 9312270133 931227 FAIRCHILD COMPLETES SALE OF REXNORD STOCK CHANTILLY VA FAIRCHILD CORP SAID IT COMPLETED THE SALE OF ITS REXNORD CORP STOCK A 44 INTEREST FOR 1819 MILLION THE SALE HAD BEEN SUBJECT TO FEDERAL TRADE COMMISSION APPROVAL WHICH WAS GRANTED FAIRCHILD SAID CASH FROM THE SALE INCREASES ITS AVAILABLE CASH TO MORE THAN 250 MILLION THE COMPANY SAYS IT INTENDS TO EXPLORE A NUMBER OF FINANCING TRANSACTIONS THAT COULD LEAD TO SUBSTANTIAL DEBT AND RELATED INTEREST EXPENSE REDUCTIONS SIGNIFICANTLY IMPROVING CASH FLOW WELL INTO THE FUTURE THE COMPANY ALSO SAID THAT ITS AEROSPACE FASTENERS BUSINESS WILL BE IN A POSITION TO START MAKING MAJOR OPERATING PROFIT AND CASH FLOW CONTRIBUTIONS AS THE AEROSPACE INDUSTRY RECOVERS OVER THE NEXT SEVERAL YEARS JEFFREY STEINER CHAIRMAN AND CHIEF EXECUTIVE SAID FAIRCHILD IS PURSUING AGGRESSIVE COSTREDUCTION AND OTHER RECOVERY ACTIONS INCLUDING A COMPLETE REENGINEERING OF ITS AEROSPACE FASTENERS BUSINESS AND SIGNIFICANT CUTS IN ITS OVERHEAD ALTHOUGH THE STEPS HAVE TAKEN LONGER THAN ANTICIPATED HE ADDED WE HAVE MADE SUBSTANTIAL PROGRESS IN COMPLETING THESE EFFORTS INCLUDING A 35 REDUCTION IN PERSONNEL THE CLOSING OF SEVERAL PLANTS AND THE RETRAINING OF THE REMAINING WORK FORCE THE COMPANY SUPPLIES AEROSPACE FASTENERS TOOLING AND ELECTRONIC CONTROL SYSTEMS FOR THE PLASTICS INJECTION MOLDING INDUSTRY AND PROVIDES TELECOMMUNICATIONS SERVICES FOR TENANTS IN COMMERCIAL OFFICE BUILDINGS 9312270132 931227 TECHNOLOGY MICRONICS COMPUTERS EXPECTS A SLOWDOWN IN FISCAL 2ND QUARTER FREMONT CALIF MICRONICS COMPUTERS INC SAID IT EXPECTS A BUSINESS SLOWDOWN IN ITS NEXT QUARTER BECAUSE SEMICONDUCTOR MAKER INTEL CORP IS ACCELERATING A SHIFT TO ITS NEW PENTIUM MICROPROCESSOR CHIP MICRONICS WHICH MAKES CIRCUIT BOARDS DID NOT QUANTIFY THE IMPACT ON EARNINGS FOR ITS SECOND QUARTER ENDING MARCH 31 BUT IT SAID RESULTS SHOULD FALL BELOW ANALYSTS' ESTIMATES WHICH RANGED FROM 22 CENTS A SHARE TO 24 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC IN THE YEAREARLIER PERIOD MICRONICS EARNED 31 MILLION OR 28 CENTS A SHARE ON SALES OF 502 MILLION MICRONICS SPECIALIZES IN MOTHER BOARDS THE ESSENTIAL PART OF PERSONAL COMPUTERS THAT PERFORM MOST CALCULATIONS AND CONTROL CONNECTIONS TO DISK DRIVES AND OTHER PARTS IT SELLS THE BOARDS TO MAJOR PERSONAL COMPUTER MAKERS MOST OF THE BOARDS ARE BASED ON INTEL'S 486 CHIP THE MOST WIDELY USED CALCULATING ENGINE FOR PCS BUT INTEL BASED IN SANTA CLARA CALIF LAST WEEK SAID IT WILL SLASH 486 PRICES BY 14 ON ITS NEXTGENERATION PENTIUM CHIP AND BOOST ITS OUTPUT IN A BID TO MOVE THAT PRODUCT INTO MAINSTREAM PERSONAL COMPUTERS A MICRONICS SPOKESMAN SAID IT HAD EXPECTED THE SECONDGENERATION PENTIUM TO ARRIVE IN LATE 1994 INSTEAD INTEL IS NOW SAYING THAT THE CHIP WILL BE SHIPPING IN VOLUME IN THE SECOND QUARTER AS A RESULT MICRONICS CUSTOMERS ARE HOLDING UP THEIR ORDERS FOR THE COMPANY'S 486BASED MOTHER BOARDS THE SPOKESMAN SAID IN TRADING THURSDAY MICRONIC'S SHARES DECLINED 375 TO 550 ON THE NASDAQ STOCK MARKET 9312270131 931227 BUSINESS BRIEF EQUIFAX INC WILL PAY 240000 RESTITUTION OVER CREDIT REPORTS BOSTON MASSACHUSETTS ATTORNEY GENERAL SCOTT HARSHBARGER SAID THAT EQUIFAX INC AGREED TO PAY AT LEAST 240000 IN RESTITUTION TO AS MANY AS 1200 PEOPLE WHO MAY HAVE BEEN HURT BY FALSE CREDIT REPORTS THE ATTORNEY GENERAL SAID THAT EQUIFAX CREDIT INFORMATION SERVICES INC MISLEADINGLY REPORTED THAT SOME CONSUMERS HAD LIENS ON THEIR PROPERTY HE SAID THAT EQUIFAX INCLUDED IN CREDIT REPORTS DOCUMENTS CALLED MUNICIPAL LIEN CERTIFICATES THOSE CERTIFICATES ARE FILED WHENEVER PROPERTY CHANGES HANDS IN MASSACHUSETTS AND OFTEN COVER FUTURE PAYMENTS OF TAXES OR WATER BILLS THE STATE OF MASSACHUSETTS AND EQUIFAX AGREED THAT SOME ORGANIZATIONS RECEIVING THE CREDIT REPORTS MIGHT MISTAKE THOSE MUNICIPAL LIEN CERTIFICATES FOR TAX LIENS WHICH INDICATE OVERDUE OR UNPAID TAXES TAX LIENS FREQUENTLY RESULT IN CREDIT DENIAL EQUIFAX BASED IN ATLANTA SAID THAT NONE OF THE CONSUMERS HAS COMPLAINED OF SPECIFIC DAMAGES ALTHOUGH ALL WERE NOTIFIED BY LETTER AND INVITED TO CALL A TOLLFREE PHONE NUMBER IT SAID IT WILL NOTIFY SOME 1200 PEOPLE WHOSE CREDIT APPLICATIONS MIGHT HAVE BEEN DELAYED OR DENIED THAT THEY ARE ENTITLED TO 250 TO 1000 IN RESTITUTION EQUIFAX SAID THAT THE INFORMATION IN ITS REPORTS WAS TECHNICALLY ACCURATE BUT WAS SUSCEPTIBLE TO BEING MISCONSTRUED BY A POTENTIAL CREDIT GRANTOR IT SAID IT HAS STOPPED INCLUDING MUNICIPAL LIEN INFORMATION IN CREDIT REPORTS ON MASSACHUSETTS CONSUMERS 9312270130 931227 US OFFICIALS EXAMINE NISSAN MAXIMA SEDAN FOR AIRBAG PROBLEMS DETROIT THE FEDERAL GOVERNMENT IS INVESTIGATING NISSAN MOTOR CORP'S MAXIMA SEDAN BECAUSE THE CAR'S AIR BAGS MAY DEPLOY SPONTANEOUSLY THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION SAID THAT AFTER A PRELIMINARY REVIEW IT OPENED AN ENGINEERING ANALYSIS OF 110259 OF NISSAN'S 1992 AND 1993 MODELYEAR MAXIMAS THE SAFETY AGENCY SAID THERE HAVE BEEN 67 CASES IN WHICH THE AIR BAGS IN THOSE VEHICLES MAY HAVE INFLATED WITHOUT CAUSE AGENCY SPOKESMAN TIM HURD SAID THAT IN AT LEAST THREE INSTANCES DRIVERS SUFFERED BROKEN BONES IN ANOTHER CASE MR HURD SAID AN AIR BAG CAUSED A DRIVER TO LOSE CONTROL OF HIS CAR AND CAREEN INTO A DITCH NISSAN SAID IT INVESTIGATED ALL 67 CASES AND FOUND IN MOST INSTANCES THERE WAS SIGNIFICANT DAMAGE TO THE CAR'S UNDERBODY THAT MAY HAVE CAUSED THE AIR BAG TO FIRE THE DRIVER MAY HAVE RUN UP ON A CURB OR INTO A DITCH SAID NISSAN SPOKESMAN MARK ADAMS THE CARS RECEIVED ENOUGH SHOCK TO BELIEVE THERE WAS AN ACCIDENT AND THE AIR BAG INFLATED NISSAN SAID THERE ARE NO LAWSUITS PENDING THAT RELATE TO THE AIRBAG DEPLOYMENT THE AUTO MAKER ADDED THAT IT IS ASSISTING THE AGENCY IN ITS INVESTIGATION 9312270129 931227 U S WEST'S PROJECT IN INDIA IS DELAYED BY DEBATE OF FOREIGNINVESTMENT POLICY BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI U S WEST INC'S PIONEERING PROPOSAL TO OFFER AN ALTERNATIVE TO INDIA'S STATEOWNED PHONE SYSTEM HAS BEEN PUT ON HOLD THE REGIONAL PROJECT WHICH WOULD AMOUNT TO A REVOLUTION IN INDIA'S TIGHTLY CONTROLLED TELECOMMUNICATIONS INDUSTRY HAS RUN INTO OPPOSITION FROM SOME MEMBERS OF INDIA'S PARLIAMENT AND FROM UNIONS REPRESENTING WORKERS IN THE STATEOWNED NETWORK U S WEST PROPOSES OFFERING AN ALTERNATIVE TO THE GOVERNMENTRUN NETWORK IN PARTS OF INDIA'S SOUTHERN STATE OF TAMIL NADU ALSO ON HOLD ARE 17 SIMILAR PROPOSALS LINED UP BEHIND U S WEST'S INITIATIVE WHICH RECEIVED APPROVAL LAST MONTH FROM THE FOREIGN INVESTMENT PROMOTION BOARD TECHNICALLY THE PROJECT HAS BEEN RETURNED TO THE INVESTMENT BOARD FOR CERTAIN EVALUATIONS HOWEVER A SENIOR OFFICIAL HAS SAID THAT NO CLEARANCE WILL BE GIVEN UNTIL THE GOVERNMENT REACHES A CONSENSUS ON THE ROLE OF PRIVATE AND FOREIGN INVESTMENT IN THE TELECOMMUNICATIONS INDUSTRY THE UNIONS SAY BASIC TELECOMMUNICATIONS SERVICES SHOULDN'T BE OPENED TO COMPETITION THEY HAVE THE SUPPORT OF SOME LEFTWING PARLIAMENT MEMBERS AND ARE THREATENING TO STRIKE IF THERE IS A CHANGE OF POLICY HOWEVER A POLICY CHANGE IS JUST WHAT IS NEEDED SAYS NAGARAJAN VITTAL HEAD OF THE DEPARTMENT OF TELECOMMUNICATIONS HE HAS BEEN PUSHING FOR ONE SINCE ASSUMING HIS POST IN OCTOBER NOW HIS PROPOSALS ARE AWAITING CONSIDERATION BY PRIME MINISTER PV NARASIMHA RAO AND HIS CABINET IF THE REVIEW GOES AS EXPECTED A NEW POLICY IS LIKELY TO BE ANNOUNCED BEFORE THE END OF JANUARY MR VITTAL ARGUES THAT THERE IS NO ALTERNATIVE TO OPENING UP BASIC SERVICES TO COMPETITION HE DISMISSES AS INADEQUATE A 400 BILLION RUPEE 1285 BILLION PLAN HE INHERITED WHICH WOULD INCREASE THE COUNTRY'S TOTAL PHONE LINES TO 20 MILLION IN 2000 FROM THE CURRENT SEVEN MILLION THAT PLAN WOULD STILL LEAVE A WAITING LIST OF TWO YEARS COMPARED WITH TODAY'S FIVE OR SIX HE ESTIMATES WE SHOULD TARGET 12 TRILLION RUPEES 3854 BILLION TO BRIDGE THIS PERENNIAL GAP MR VITTAL SAYS INDIA HAS LESS THAN ONE TELEPHONE PER 1000 PEOPLE THE GLOBAL AVERAGE IS 105 MR VITTAL WANTS INDIA TO HAVE 20 MILLION LINES BY THE END OF 1995 BUT BECAUSE INDIA LACKS THE RESOURCES TO FINANCE SUCH EXPANSION ON ITS OWN HE WANTS TO ADMIT FOREIGN INVESTORS I WANT INDIA'S TELEPHONE DENSITY TO BE AT WORLD LEVELS AND TO PROVIDE TELEPHONES ON DEMAND MR VITTAL SAYS THE QUALITY OF SERVICES MUST GO UP AND THAT CAN ONLY HAPPEN WITH COMPETITION ACCORDING TO BOLI MADAPPA U S WEST'S DIRECTOR OF INTERNATIONAL NETWORK PROJECTS THE FIRST STAGE OF U S WEST'S PLAN WOULD CREATE 430000 LINES WITH AN INVESTMENT OF 90 MILLION IN AND AROUND THE TEXTILEEXPORTING TOWN OF TIRUPUR IN TAMIL NADU IN THE SECOND STAGE TO BE COMPLETED BY 2004 THE TOTAL INVESTMENT WOULD RISE TO 176 MILLION AND THE NUMBER OF LINES TO 930000 U S WEST WOULD PROVIDE BASIC TELEPHONE SERVICE AS WELL AS DATA SERVICES PUBLIC CALL OFFICES AND CABLE TELEVISION SEVERAL COMPANIES SEEKING TO ENTER THE MARKET ARE CLOSELY WATCHING THE OUTCOME OF THE U S WEST PROPOSAL ACCORDING TO MR VITTAL AMERICAN TELEPHONE & TELEGRAPH CO HAS OFFERED TO ELIMINATE THE WAITING LIST IN 71 TOWNS BY PROVIDING COMPETITIVE SERVICES AND MOTOROLA INC HAS OFFERED A WAITLISTBUSTER PROPOSAL THAT AMONG OTHER THINGS WOULD BE DESIGNED TO CLEAR THE WAITING LIST IN NEW DELHI INDIA'S CAPITAL IN SIX MONTHS 9312270128 931227 JURY FINDS CONTEMPRI LIABLE FOR DAMAGES RELATED TO PRODUCTS TAYLOR PA CONTEMPRI HOMES INC SAID A JURY IN A NEW JERSEY STATE COURT ISSUED A 14 MILLION VERDICT AGAINST THE COMPANY FOR DAMAGES INVOLVING THE COMPANY'S MODULARHOME PRODUCTS CONTEMPRI SAID ON DEC 15 A JURY FOUND THE COMPANY LIABLE FOR DAMAGES PLAINTIFFS HAD ALLEGED DEFECTS IN THE HOUSING PRODUCTS AND BREACHES OF REPRESENTATION MADE TO SEVERAL PEOPLE WHO PURCHASED MODULAR HOMES FROM ONE OF CONTEMPRI'S BUILDERDEVELOPERS IN 1988 AND 1989 THE COMPANY'S PRESIDENT STEPHEN BASSETT SAID HE WAS OUTRAGED BY THE DECISION AND CALLED IT A MISCARRIAGE OF JUSTICE BECAUSE HE EXPECTED THE BULK OF THE LIABILITY TO BE ASSIGNED TO THE BUILDERDEVELOPER THE BUILDERDEVELOPER HAD CLAIMED SHE WAS A MEMBER OF CONTEMPRI'S BOARD AUTHORIZED TO MAKE REPRESENTATIONS ON BEHALF OF THE COMPANY CONTEMPRI SAID ALTHOUGH THE COMPANY SAID THIS WAS FALSE THE JURY DECIDED THE BUILDERDEVELOPER WAS AN AGENT FOR CONTEMPRI THE COMPANY SAID IT HADN'T EXPECTED TO BE LIABLE FOR MORE THAN 60000 OF THE DAMAGES MR BASSETT SAID THE COMPANY HAS FILED MOTIONS ASKING THE TRIALCOURT JUDGE TO OVERRULE ALL OR PORTIONS OF THE JURY'S VERDICT IF UNSUCCESSFUL THE COMPANY SAID IT WILL PURSUE A VIGOROUS APPEAL OF AN ERRONEOUS JUDGMENT 9312270127 931227 INDIA'S TOURISM BEGINS TO PICK UP AFTER TOUGH YEAR BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI THE LONG NIGHT FOR INDIA'S TOURISM SEEMS TO BE COMING TO AN END WHEN MILITANT HINDUS DESTROYED A MOSQUE IN AYODHYA IN DECEMBER 1992 AND TRIGGERED THREE MONTHS OF VIOLENCE EXPECTATIONS FOR A GREAT TOURISM YEAR WERE SHATTERED CANCELLATIONS EMPTIED HOTELS AND THE NUMBER OF VISITORS PLUMMETED WE WEREN'T LOOKING AT OCCUPANCY PERCENTAGES WE WERE LOOKING AT VISITORS IN ONES AND TWOS SAID ASHOK BHATIA CHAIRMAN OF ITCWELCOMGROUP ONE OF INDIA'S FOUR LEADING HOTEL CHAINS WHOSE BOMBAY HOTEL WAS BOMBED IN MARCH ITCWELCOMGROUP'S RESORT HOTELS AT AGRA AND JAIPUR USUALLY BURSTING WITH VISITORS IN THE WINTER WERE NEARLY DESERTED EARLY THIS YEAR NOW BUSINESS IS FINALLY STARTING TO IMPROVE IN NOVEMBER THE TOTAL NUMBER OF FOREIGN VISITORS EXCLUDING THOSE FROM PAKISTAN AND BANGLADESH WAS UP 48 FROM A YEAR EARLIER IN THE FIRST 12 DAYS OF DECEMBER ARRIVALS IN BOMBAY NEW DELHI CALCUTTA AND MADRAS THE COUNTRY'S MAIN ENTRY POINTS JUMPED ABOUT 20 FOR 1993'S FIRST 11 MONTHS HOWEVER THE TOTAL NUMBER OF VISITORS WAS 155 MILLION DOWN 86 FROM A YEAR EARLIER ACCORDING TO THE MINISTRY OF TOURISM EXCLUDING PAKISTAN AND BANGLADESH THE TOTAL WAS 126 MILLION DOWN 18 THE COUNTRY'S HOTELIERS REMAIN CAUTIOUS I THINK THAT THE INCREASE IN RECENT MONTHS IS LARGELY BECAUSE OF BUSINESS VISITORS SAID GAUTAM KHANNA VICE PRESIDENT OF OBEROI HOTELS PVT LTD THIS WINTER IS BETTER BUT IT'S NOTHING TO GET EXCITED ABOUT MR KHANNA SAID RECOVERY IS SLOW PARTLY BECAUSE OF RECESSION IN EUROPE TOURIST ARRIVALS FROM THE US HAVE STARTED PICKING UP BUT VERY SLOWLY HE ADDED ITCWELCOMGROUP ESTIMATES THAT ITS BUSINESS TRAFFIC IS RUNNING 15 AHEAD OF LAST YEAR OCCUPANCY IN ITS RESORT HOTELS IS AROUND 50 UP FROM 20 A YEAR AGO BUT STILL WELL BELOW THE 80 OF TWO YEARS AGO THERE'S A SHIFT TOWARD BUDGET TOURISM SAID ITCWELCOMGROUP'S MR BHATIA PEOPLE SPENDING LESS THAN 50 A DAY ARE INCREASING FASTER THAN THE 100ADAY VISITORS 9312270126 931227 ECONOMY VEHICLE SALES CONTINUE STEADY GROWTH POINTING TO ROBUST REBOUND BY INDUSTRY BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT VEHICLE SALES CONTINUED THEIR STEADY RECOVERY IN MIDDECEMBER FUELING HOPES THAT THE REBOUND IN THE US AUTO INDUSTRY WILL BE SUSTAINED AND ROBUST THE REBOUND IS VERY SOLIDLY GROUNDED SAID SUSAN G JACOBS AN INDUSTRY CONSULTANT THE IMPROVEMENT IN SALES WILL CONTINUE AND BE EVEN STRONGER IN 1994 NORTH AMERICANBUILT CARS AND TRUCKS SOLD AT AN ANNUAL PACE OF 129 MILLION VEHICLES IN THE DEC 11DEC 20 SELLING PERIOD THAT WAS UP SLIGHTLY FROM A 128 MILLION RATE IN THE PREVIOUS 30 DAYS AND A BIG INCREASE FROM THE YEAREARLIER RATE OF 112 MILLION VEHICLES ALTOGETHER AMERICANS BOUGHT 300572 VEHICLES IN THE SECOND 10 DAYS OF DECEMBER UP 273 FROM A YEAR AGO CAR SALES ROSE 205 FROM YEAREARLIER LEVELS WHILE LIGHT TRUCK SALES JUMPED 372 THIS IS THE US AUTO INDUSTRY'S FINAL MIDMONTH 10DAY SALES REPORT ALTHOUGH LATEDECEMBER SALES WILL BE REPORTED TOGETHER WITH MONTH AND YEAREND RESULTS GENERAL MOTORS CORP SAID THIS MONTH THAT BEGINNING IN JANUARY IT WILL NO LONGER PUBLICLY REPORT 10DAY SALES AND ALL OTHER AUTO MAKERS QUICKLY FOLLOWED SUIT CHRYSLER CORP HAD STOPPED REPORTING 10DAY SALES TWO YEARS AGO BECAUSE OF THE RESOURCES IT REQUIRED THE INDUSTRY WILL CONTINUE MONTHLY SALES REPORTS IN MIDDECEMBER GM POSTED THE BIGGEST SALES GAINS OF DETROIT'S BIG THREE AUTO MAKERS GM'S OVERALL VEHICLE SALES ROSE 383 TO 114806 CARS AND TRUCKS GM'S CAR SALES SURGED 377 LARGELY BECAUSE OF STRONG DEMAND FOR ITS VALUEPRICED CARS SUCH AS THE CHEVROLET CAVALIER AND BUICK CENTURY TRUCK SALES MEANWHILE ROSE 392 TO 45717 VEHICLES FORD MOTOR CO'S TOTAL VEHICLE SALES GREW 245 TO 87017 VEHICLES FORD'S CAR SALES EDGED UP 86 WHILE TRUCK SALES ROSE A HEFTY 442 THE AUTO MAKER'S CAR SALES WERE DRAGGED DOWN IN PART BY SAGGING DEMAND FOR THE TAURUS WHICH WAS HEAVILY DISCOUNTED A YEAR EARLIER MEANWHILE CHRYSLER'S CAR AND TRUCK SALES INCREASED 20 TO 47200 VEHICLES ACCORDING TO AN ESTIMATE BY WARD'S AUTOMOTIVE REPORTS AN INDUSTRY TRADE PUBLICATION IN ITS EFFORT TO LURE BUDGETMINDED CONSUMERS CHRYSLER SAID LAST WEEK IT WILL EXTEND THROUGH JAN 31 THE INCENTIVE PROGRAM ON CERTAIN 1994 MODELS THE AUTO MAKER ALSO ANNOUNCED A NEW LEASE PROGRAM THAT ALLOWS DEALERS TO OFFER LOW MONTHLY PAYMENTS ON ITS MINIVANS VIRTUALLY ALL OF THE JAPANESE AUTO MAKERS WITH US MANUFACTURING OPERATIONS POSTED STRONG SALES IN MIDDECEMBER NISSAN MOTOR CORP REPORTED A 422 SALES SURGE HONDA MOTOR CO'S SALES ROSE 107 AND MITSUBISHI MOTORS CORP'S SALES JUMPED 504 MEANWHILE TOYOTA MOTOR CORP SAW ITS TOTAL CAR AND TRUCK SALES GROW 32 IN MIDDECEMBER 9312270125 931227 SETTLEMENT IN LAWSUIT AGAINST INTERNATIONAL TOTALIZATOR IS CLEARED CARLSBAD CALIF INTERNATIONAL TOTALIZATOR SYSTEMS INC SAID A FEDERAL DISTRICT COURT IN SAN DIEGO GAVE FINAL APPROVAL TO A 725000 SETTLEMENT OF A 1991 CLASSACTION SHAREHOLDER LAWSUIT AGAINST THE COMPANY INTERNATIONAL TOTALIZATOR SAID A CONFIDENTIALITY CLAUSE IN THE SETTLEMENT AGREEMENT PREVENTS IT FROM DISCLOSING WHAT PORTION OF THE SETTLEMENT IT WILL PAY BUT A SPOKESMAN SAID THE COMPANY'S PORTION WILL HAVE NO EFFECT ON CURRENT OR FUTURE OPERATIONS THE SUIT ALLEGED THAT FROM FEB 10 1990 THROUGH OCT 24 1990 THE COMPANY ISSUED FALSE NEWS RELEASES AND REPORTS ABOUT ITS OPERATIONS THAT CAUSED THE MARKET PRICE OF ITS COMMON SHARES TO BE ARTIFICIALLY INFLATED INTERNATIONAL TOTALIZATOR PROVIDES SPECIALIZED TICKETPROCESSING SYSTEMS AND EQUIPMENT AND DATAMANAGEMENT SYSTEMS 9312270124 931227 TECHNOLOGY FCC TO GRANT 3 FIRMS LUCRATIVE SLOTS FOR PERSONAL COMMUNICATIONS SYSTEMS BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION SAID IT WILL GRANT LUCRATIVE SLOTS FOR PERSONAL COMMUNICATIONS SYSTEMS TO THREE COMPANIES THAT HELPED DEVELOP THE TECHNOLOGY UNDER THE PIONEER'S PREFERENCE AWARDS THE COMPANIES AMERICAN PERSONAL COMMUNICATIONS COX ENTERPRISES INC AND OMNIPOINT COMMUNICATIONS INC WOULD GET SPECTRUM FOR FREE TO LAUNCH NEW WIRELESS COMMUNICATIONS SYSTEMS OTHER COMPANIES JUDGED NOT TO BE AMONG THE INNOVATORS MUST VIE FOR SPECTRUM IN AN AUCTION THIS MAY THAT IS EXPECTED TO RAISE AT LEAST 10 BILLION THE FCC TURNED DOWN 47 COMPANIES THAT SOUGHT PIONEER'S PREFERENCES THERE LIKELY WILL BE CHALLENGES OR LAWSUITS SEEKING TO OVERTURN ITS DECISION CERTAINLY SOME OF THE DISAPPOINTED COMPANIES ARE NOT GOING TO LET THIS REST SAID RODNEY SMALL AN FCC ECONOMIST WHO WORKED ON THE MATTER THE THREE COMPANIES THAT DID GET THE PREFERENCES WOULDN'T ESTIMATE HOW MUCH THEY'RE WORTH BUT THE AWARDS REPRESENT LARGE PIECES OF SPECTRUM 30 MEGAHERTZ EACH IN THREE OF THE BIGGEST MARKETS INCLUDED IN THE AUCTION NEW YORK WASHINGTON DC AND LOS ANGELES THE FCC DECIDED IN SEPTEMBER TO AWARD TWO 30MEGAHERTZ BLOCKS IN EACH OF 49 REGIONS AS WELL AS FIVE SMALLER PIECES OF SPECTRUM IN 487 SUBREGIONS AT THE TIME THE FCC POSTPONED A DECISION ON WHETHER THE PIONEER'S PREFERENCES IT TENTATIVELY HAD GRANTED THE THREE COMPANIES IN PAST YEARS SHOULD TURN INTO AUTOMATIC SPECTRUM GRANTS ONE COMMISSIONER ERVIN S DUGGAN EXPRESSED CONCERNS ABOUT PIONEER'S PREFERENCES SAYING THEY COULD POLITICIZE AWARDS OR FORCE THE GOVERNMENT TO MAKE HAIRSPLITTING DECISIONS ABOUT WHAT IS TRUE INNOVATION THE THREE COMPANIES ARGUED THEY ALREADY HAD MADE BIG INVESTMENTS AFTER BEING AWARDED TENTATIVE PREFERENCES AND SHOULDN'T HAVE TO COMPETE WITH THE SCORES OF WELLHEELED COMPANIES EXPECTED TO BID OMNIPOINT A SMALL CLOSELY HELD COMPANY IN COLORADO SPRINGS COLO SAID ITS EXECUTIVES WORKED FOR TWO YEARS WITHOUT PAY DEVELOPING A DIGITAL TECHNOLOGY THAT COULD OFFER DATA VIDEO AND VOICE COMMUNICATIONS ON A HANDHELD DEVICE THE COMPANY WOULD NOW BE ONE OF THE TWO 30MEGAHERTZ SERVICES IN NEW YORK AND NORTHERN NEW JERSEY AMERICAN PERSONAL COMMUNICATIONS A PARTNERSHIP THAT INCLUDES THE WASHINGTON POST CO SAID IT SPENT AT LEAST 15 MILLION TESTING ITS WASHINGTONAREA SYSTEM WHICH USES A COMBINATION OF MICROWAVE DISHES AND TELEPHONE LINES COX A LARGE CLOSELYHELD MEDIA CONGLOMERATE IN ATLANTA HAS DEMONSTRATED IN SOUTHERN CALIFORNIA THE USE OF CABLETELEVISION LINES TO CARRY CONVERSATIONS BETWEEN HANDHELD PHONES THE POLICY ON PIONEER'S PREFERENCE WAS DEVELOPED AT A TIME WHEN THE GOVERNMENT AWARDED SPECTRUM BY LOTTERY INSTEAD OF BY AUCTION THE FCC SAID IT EVENTUALLY MAY SCRAP THE POLICY BUT SAID IT WOULD BE INEQUITABLE TO APPLY A REPEAL TO COMPANIES THAT ALREADY HAVE BEEN WORKING UNDER THE POLICY REED HUNDT THE FCC'S NEW CHAIRMAN DIDN'T PARTICIPATE IN THE CASE BECAUSE HIS FORMER LAW FIRM LATHAM & WATKINS REPRESENTED BELL ATLANTIC CORP ONE OF THE 47 OTHER COMPANIES THAT SOUGHT PIONEER'S PREFERENCES MR SMALL SAID OTHERS INCLUDED QUALCOMM INC WHICH MANUFACTURES AMERICAN PERSONAL COMMUNICATIONS' HANDSETS AND SOUTHWESTERN BELL CORP 9312270123 931227 SAUDI ARABIA SHEIK PAYS 225 MILLION IN SETTLEMENT TO DISMISS BCCI CHARGES BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL SHEIK KHALID BIN MAHFOUZ A SAUDI ARABIAN FINANCIER PAID 225 MILLION IN A SETTLEMENT THAT DISMISSES CHARGES THAT HE CONSPIRED TO STEAL OVER 300 MILLION FROM DEPOSITORS OF BANK OF CREDIT & COMMERCE INTERNATIONAL UNDER TERMS OF THE SETTLEMENT BOTH THE FEDERAL RESERVE BOARD AND THE OFFICE OF MANHATTAN DISTRICT ATTORNEY ROBERT MORGENTHAU AGREED TO DROP ALL PENDING CHARGES AGAINST SHEIK KHALID AND HAROON KAHLON HIS ASSISTANT THE SHEIK IS THE FORMER CHIEF OPERATING OFFICER OF NATIONAL COMMERCIAL BANK THE MAHFOUZ FAMILY BANK THAT SERVES THE SAUDI ROYAL FAMILY THE SETTLEMENT ACCEPTED BY THE NEW YORK STATE SUPREME COURT INCLUDES 37 MILLION IN PAYMENTS IN LIEU OF FINES AND 188 MILLION TO BE USED TO PAY FORMER DEPOSITORS CREDITORS AND OTHERS WHO CAN SHOW THAT THEY SUFFERED LOSSES FOLLOWING THE COLLAPSE OF BCCI THE BANK A UNIT OF BCCI HOLDINGS LUXEMBOURG SA WAS SEIZED BY REGULATORS IN THE US AND ELSEWHERE ON JULY 5 1991 AMID SIGNS THAT BILLIONS OF DOLLARS IN DEPOSITS HAD FRAUDULENTLY DISAPPEARED SOME OF THE 188 MILLION WILL BE USED TO PAY THE COSTS OF MR MORGENTHAU'S CONTINUING INVESTIGATION INTO THE BCCI AFFAIR THE SETTLEMENT REQUIRES THE SHEIK AND MR KAHLON TO COOPERATE WITH MR MORGENTHAU'S OFFICE AND THE FED IN THEIR INVESTIGATIONS AMONG OTHER THINGS THE DISTRICT ATTORNEY IS STUDYING THE INVOLVEMENT OF THE RULING FAMILY OF ABU DHABI IN THE BCCI COLLAPSE WE CONSIDER THIS AN EXCELLENT SETTLEMENT BECAUSE HE COULD HAVE STAYED IN SAUDI ARABIA WHICH HAS NO EXTRADITION TREATY WITH THE US AND THUS AVOIDED PROSECUTION MR MORGENTHAU SAID IN AN INTERVIEW SHEIK KHALID IN A STATEMENT ISSUED BY HIS NEW YORK PUBLIC RELATIONS FIRM SAID I HAVE ACCEPTED THESE AGREEMENTS AND THEIR MONETARY COSTS AS A BUSINESS DECISION AND FOR PEACE OF MIND I HAVE MAINTAINED FROM THE BEGINNING THAT I WAS INNOCENT OF ALL THESE CHARGES AND I AM PLEASED THAT THE COURT HAS DISMISSED THEM LAST YEAR THE FED SOUGHT A 170 MILLION FINE AGAINST SHEIK KHALID AND A 6 MILLION FINE AGAINST MR KAHLON FOR ALLEGEDLY VIOLATING FEDERAL BANKING LAW THE FED CHARGED THAT IN 1986 SHEIK KHALID ACQUIRED CONTROL OF 287 OF CREDIT & COMMERCE AMERICAN HOLDINGS NV PARENT COMPANY OF THE FORMER FIRST AMERICAN BANKSHARES INC WITHOUT THE REQUIRED FED APPROVAL IN ADDITION THE FED CHARGED THAT SHEIK KHALID AND MR KAHLON HELPED BCCI WITH SEVERAL TRANSACTIONS DESIGNED TO CONCEAL THE BANK'S FINANCIAL PROBLEMS A NEW YORK STATE GRAND JURY HAD INDICTED THE SHEIK AND MR KAHLON ON CHARGES THAT THEY SCHEMED TO CONCEAL THE TRUE OWNERSHIP AND FINANCIAL CONDITION OF BCCI MR KAHLON AND EASTBROOK INC A NEW YORK BROKERAGE FIRM PLEADED GUILTY TO A TECHNICAL MISDEMEANOR OF FAILING TO HAVE REGISTERED WITH NEW YORK STATE AS A BROKER BUT THE SETTLEMENT NOTES THAT ALL CHARGES AGAINST SHEIK KHALID ARE DISMISSED AND THAT THE SETTLEMENT CAN'T BE USED AS EVIDENCE OF WRONGDOING OR LIABILITY IN OTHER PENDING PROCEEDINGS SHEIK KHALID'S ATTORNEYS GARY NAFTALIS OF THE NEW YORK FIRM OF KRAMER LEVIN NAFTALIS NESSEN KAMIN & FRANKEL AND LAURENCE TRIBE OF HARVARD LAW SCHOOL ASSERTED THAT THE TERMS OF THE SETTLEMENT WILL STRENGTHEN SHEIK KHALID'S HAND IN DEFENDING HIMSELF AGAINST PENDING CHARGES AND CLAIMS AROUND THE WORLD 9312270122 931227 WESTCOT GROWS LESS CERTAIN AS DISNEY GRAPPLES WITH COSTS EURO DISNEY WOES BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF PROSPECTS FOR WALT DISNEY CO'S PLANNED 3 BILLION EXPANSION OF DISNEYLAND IN ANAHEIM CALIF APPEAR LESS CERTAIN AS THE ENTERTAINMENT COMPANY FACES LENGTHY GOVERNMENT NEGOTIATIONS COST CONCERNS AND FINANCIAL WOES AT ITS 49OWNED EURO DISNEY SCA KERRY HUNNEWELL AN ARCHITECT AND MANAGER OF THE PLANNED EXPANSION SWEEPING WESTCOT THEME PARK AND RESORTHOTEL PROJECT RESIGNED LAST WEEK A HANDFUL OF THE TWO DOZEN STAFF MEMBERS OF THE WESTCOT TEAM WERE REASSIGNED TO OTHER DUTIES AS DISNEY CONTINUES TO BARGAIN WITH STATE AND LOCAL OFFICIALS OVER INFRASTRUCTURE COSTS AND COMMUNITY ISSUES WHILE DISNEY EXECUTIVES SAID THE COMPANY IS STILL HARD AT WORK ON WESTCOT PLANS THEY ACKNOWLEDGE THAT ANY CONSTRUCTION IS LIKELY TO BE SIGNIFICANTLY DELAYED FROM THE PREVIOUS 1994 TARGET DATE THE PROJECT HAS NOT BEEN GREENLIGHTED AND SEVERAL APPROVALS ARE STILL REQUIRED SAID KENNETH P WONG SENIOR VICE PRESIDENT OF DISNEY DEVELOPMENT CO IT HAS TAKEN LONGER TO GET TO THIS POINT THAN WE ORIGINALLY ANTICIPATED MR WONG SAID MR HUNNEWELL'S DEPARTURE WAS A NATURAL STEP AS THE PROJECT MOVES FROM THE BASIC DESIGN STAGE TO ONE OF REACHING DEVELOPMENT AGREEMENTS KERRY MADE OUTSTANDING CONTRIBUTIONS DURING THE EARLY PHASE OF THE PROJECT BUT HIS WORK WAS REALLY DONE MR WONG SAID ADDING THAT MR HUNNEWELL WILL SERVE AS A CONSULTANT ON THE PROJECT DISNEY WON'T DECIDE WHETHER TO PROCEED WITH WESTCOT UNTIL NEGOTIATIONS WITH CITY AND COUNTY OFFICIALS ARE COMPLETED AND THE PLAN CONSIDERED ECONOMICALLY FEASIBLE THAT PROCESS WILL TAKE AT LEAST THREE TO SIX MONTHS MR WONG SAID CONSTRUCTION WOULD THEN TAKE SEVERAL YEARS BRET COLSON A SPOKESMAN FOR THE CITY OF ANAHEIM SAID OFFICIALS REMAIN OPTIMISTIC ABOUT THEIR ABILITY TO REACH AN AGREEMENT HE ADDED HOWEVER WE UNDERSTAND THAT THERE ARE OTHER FACTORS AT WORK HERE AND I DON'T THINK ANYONE FROM THE CITY HAS BEEN ABLE TO ANALYZE HOW THAT MIGHT IMPACT THE WESTCOT PROJECT AMONG THOSE ISSUES ARE ONGOING FINANCIAL TROUBLES AT EURO DISNEY IN FRANCE EURO DISNEY REPORTED A LOSS OF 899 MILLION IN ITS FIRST FULL YEAR OF OPERATION ENDED SEPT 30 LAST WEEK COMPANY AUDITORS SAID THAT EURO DISNEY MIGHT BE UNABLE TO CONTINUE AS A GOING CONCERN IF A FINANCIAL RESTRUCTURING ISN'T COMPLETED EURO DISNEY WHICH HAS BEEN IN NEGOTIATIONS WITH ITS BANKS AND WALT DISNEY CO ON THE RESTRUCTURING SAID IT WOULD FACE LIQUIDITY PROBLEMS IF ITS FINANCES AREN'T REVAMPED WITHIN THE NEXT FEW MONTHS THE PARK HAS BEEN HURT BY A NUMBER OF FACTORS INCLUDING A EUROPEAN RECESSION LOWERTHANEXPECTED OCCUPANCY OF ONSITE HOTELS AND VISITORS WHO ARE SPENDING LESS THAN EXPECTED AT HIGHPRICED CONCESSIONS FURTHERMORE DISNEY IS MOVING AHEAD ON PLANS FOR A THIRD US THEME PARK COMPLEX IN PRINCE WILLIAM COUNTY VA WHICH COULD CARRY A PRICE TAG OF BETWEEN 500 MILLION AND 800 MILLION DISNEY IS ANGLING FOR STATE AND COUNTY ASSISTANCE FOR THE PROJECT WHICH COULD RUN AS HIGH AS 100 MILLION THE COMPANY HAS INDICATED IT WOULD LIKELY DROP ITS PLANS IF IT CAN'T GET PUBLIC FUNDING OF INFRASTRUCTURE IMPROVEMENTS WE ARE NOT SEEKING TO INCREASE TAXES FOR THE PEOPLE OF VIRGINIA SAID A DISNEY SPOKESMAN ADDING THAT THE COMPANY ESTIMATES THE PROJECT COULD GENERATE 186 BILLION IN TAXES OVER THREE DECADES AMONG OTHER THINGS THE COMPANY IS PROPOSING THAT PUBLIC DEBT FINANCING FOR IMPROVEMENTS BE RETIRED BY TAX REVENUE GENERATED BY THE COMPLEX 9312270121 931227 WHO'S NEWS BECKMAN INSTRUMENTS INC BECKMAN INSTRUMENTS INC FULLERTON CALIF THIS SUPPLIER OF PRODUCTS FOR BIOLOGICAL ANALYSIS IN LABORATORIES NAMED THREE NEW DIRECTORS INCREASING THE BOARD TO 11 THEY ARE DENNIS C FILL CHAIRMAN AND CHIEF EXECUTIVE OF ADVANCED TECHNOLOGY LABORATORIES INC WILLIAM N KELLEY EXECUTIVE VICE PRESIDENT AND CHIEF EXECUTIVE AT THE UNIVERSITY OF PENNSYLVANIA MEDICAL CENTER AND DEAN OF THE SCHOOL OF MEDICINE AND THE ROBERT G DUNLOP PROFESSOR OF MEDICINE BIOCHEMISTRY AND BIOPHYSICS AND C RODERICK O'NEIL CHAIRMAN AND FOUNDER OF O'NEIL ASSOCIATES THE COMPANY ALSO SAID JOHN P WAREHAM 52 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER WILL ASSUME THE ADDITIONAL POST OF CHIEF FINANCIAL OFFICER SUCCEEDING GEORGE KILMAIN 60 WHO RETIRED 9312270120 931227 MARKETING & MEDIA CONCERT TICKET SALES HIT SOUR NOTE IN '93 BUT PICKUP IS SEEN DINOSAURS' ARE TOPGROSSERS OPTIMISM IN THE INDUSTRY IS RESULT OF NEW REALISM BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL POPULAR MUSIC CONCERT TICKET SALES FOR 1993 DECLINED ABOUT 10 BUT MUSIC INDUSTRY INSIDERS SAY THE BUSINESS IS HEALTHIER THAN IT LOOKS POLLSTAR A TRADE MAGAZINE FOR THE CONCERT BUSINESS SAID MAJOR MUSIC TOURS IN NORTH AMERICA SOLD NEARLY 900 MILLION IN TICKETS THIS YEAR DOWN FROM ABOUT 1 BILLION IN 1992 BUT THIS YEAR WASN'T NEARLY AS BAD AS THE WORST YEAR IN RECENT MEMORY 1991 WHEN THE TOTAL FELL TO 830 MILLION THE TOPDRAWING ACT THIS YEAR WAS THE GRATEFUL DEAD PULLING IN 456 MILLION A RECORD FOR THE GROUP REPEATING THE PATTERN OF RECENT YEARS THE TOP GROSSERS WERE ALL WHAT THE INDUSTRY CALLS DINOSAUR ACTS GRIZZLED VETERANS LIKE ROD STEWART NEIL DIAMOND AND PAUL MCCARTNEY WHILE EACH ACT SOLD SUBSTANTIAL VOLUMES OF TICKETS THEY WERE WELL BELOW INDUSTRY RECORDS THE ROLLING STONES' STEEL WHEELS TOUR PULLED IN A STAGGERING 98 MILLION IN 1989 AND THE NEW KIDS ON THE BLOCK RACKED UP 74 MILLION FROM A 1991 TOUR ONE REASON FOR OPTIMISM IN THE BUSINESS IS THAT BOTH THOSE BLOCKBUSTER ACTS THE STONES AND THE NEW KIDS WILL HIT THE ROAD AGAIN IN 1994 BUT THERE ARE OTHER REASONS TO CHEER SAID GARY BONGIOVANNI POLLSTAR'S EDITOR IN CHIEF PROMOTERS GOT SO BURNED IN 1991 AND THEY'VE BEGUN TO BECOME MORE REALISTIC SAID MR BONGIOVANNI INDIVIDUAL SHOWS MAY BE GROSSING MORE MODESTLY BUT ARTISTS HAVE STOPPED DEMANDING RIDICULOUS MONEY AND BIGGER BUILDINGS THAN THEY CAN FILL WHERE PREVIOUSLY PERFORMERS WOULD HAVE GONE TO A STADIUM THEY ARE NOW GOING TO ARENAS THAT HOLD 6000 SEATS AND THE FANS ARE GETTING A MORE INTIMATE EXPERIENCE MR BONGIOVANNI ADDED THAT PROMOTERS ARE TALKING ABOUT A NEW GENERATION OF TALENTED ACTS COMING ALONG AND THEY SAY IT HAS BECOME COOL AGAIN FOR YOUNG PEOPLE TO GO TO CONCERTS BANDS LIKE PEARL JAM AND SMASHING PUMPKINS ARE EASILY FILLING 5000SEAT VENUES AND ARE MAKING BETTER MUSIC VIRTUALLY EVERYBODY IN THE MUSIC BUSINESS WILL TELL YOU THAT THE '80S WERE A DECADE OF BAD MUSIC AND THAT IS ONE REASON WHY THE '70S ACTS ARE CARRYING THE WEIGHT FINALLY THAT SEEMS TO BE CHANGING 9312270119 931227 POLITICS & POLICY CLINTON VOLUNTEERS TO GIVE DOCUMENTS ON REALESTATE DEAL TO JUSTICE OFFICIALS BY JEFFREY H BIRNBAUM AND KENNETH H BACON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON TRIED TO ALLAY THE CONTROVERSY OVER HIS FAILED INVESTMENT IN AN ARKANSAS REALESTATE VENTURE BY GIVING HIS FILES TO THE JUSTICE DEPARTMENT BUT HIS REFUSAL TO MAKE THE DOCUMENTS PUBLIC COULD KEEP THE ISSUE ALIVE THE WHITE HOUSE SAID THE PRESIDENT AND HILLARY RODHAM CLINTON WOULD SEND THE JUSTICE DEPARTMENT THEIR FILES INVOLVING THEIR INVESTMENT IN WHITEWATER DEVELOPMENT CORP THE DEPARTMENT HADN'T REQUESTED THE DOCUMENTS INTEREST WAS FUELED BY THE DISCLOSURE LAST WEEK THAT SOME OF THESE FILES WERE REMOVED FROM THE OFFICE OF WHITE HOUSE DEPUTY COUNSEL VINCENT FOSTER TWO DAYS AFTER HIS SUICIDE IN JULY THE JUSTICE DEPARTMENT IS LOOKING AT WHITEWATER AS PART OF A BROADER CRIMINAL AND CIVIL INQUIRY INTO MADISON GUARANTY SAVINGS & LOAN A FAILED LITTLE ROCK ARK THRIFT OWNED BY JAMES MCDOUGAL WHO WAS THE CLINTONS' BUSINESS PARTNER IN WHITEWATER AND A POLITICAL SUPPORTER OF MR CLINTON WHEN HE WAS ARKANSAS GOVERNOR AFTER MUCH INTERNAL DEBATE AND PUBLIC CRITICISM THE WHITE HOUSE DECIDED TO SEND THE DOCUMENTS TO THE JUSTICE DEPARTMENT BEFORE THEY WERE REQUESTED THE PRESIDENT THOUGHT THIS WAS THE APPROPRIATE COURSE OF ACTION AND TIMELY SAID WHITE HOUSE COMMUNICATIONS DIRECTOR MARK GEARAN WHITE HOUSE AIDES INDICATED THAT THE CLINTONS DON'T INTEND TO MAKE THE DOCUMENTS PUBLIC OR SEND THEM TO LAWMAKERS ON CAPITOL HILL THAT IS LIKELY TO GIVE OPPONENTS A REASON TO CONTINUE TO CRITICIZE THE PRESIDENT SOME REPUBLICANS ALREADY HAVE ACCUSED MR CLINTON OF USING THE JUSTICE DEPARTMENT TO HIDE THE DOCUMENTS AND THEY ARE CRYING FOUL THEY ARE ALSO UPSET BY THE DECISION BY SEN DONALD RIEGLE D MICH CHAIRMAN OF THE SENATE BANKING COMMITTEE TO REFUSE A GOP REQUEST TO HOLD HEARINGS ON THE FAILURE OF MADISON GUARANTY WITH THAT DECISION SEN RIEGLE JOINED THE CHAIRMAN OF THE HOUSE BANKING COMMITTEE REP HENRY GONZALEZ D TEXAS IN REFUSING TO EXAMINE THE CASE IT'S MY JUDGMENT THAT THE PRESENT INVESTIGATIVE EFFORTS BY THE JUSTICE DEPARTMENT IN THE MADISON GUARANTY CASE SHOULD RUN THEIR COURSE WITHOUT CONGRESSIONAL INTERFERENCE MR RIEGLE SAID IN A LETTER TO SEN ALFONSE D'AMATO R NY HE SAID THEY WOULD CONSIDER THE POSSIBILITY OF HEARINGS AFTER THE JUSTICE DEPARTMENT COMPLETES ITS INVESTIGATION LAST WEEK MR D'AMATO BACKED BY THE SENATE REPUBLICAN LEADERSHIP ASKED FOR A HEARING TO STUDY CHARGES OF THE POSSIBLE DIVERSION OF FEDERALLY INSURED THRIFT FUNDS TO PAY OFF CAMPAIGN AND PERSONAL DEBTS THE DISAPPEARANCE OF OFFICIAL AND PERSONAL FILES CRITICAL TO COMPLETE EXAMINATION OF THESE ALLEGATIONS AND THE POSSIBLE PARTICIPATION OF FRIENDS OF THE PRESIDENT AS WELL AS MEMBERS OF THE FIRST FAMILY IN THE ALLEGED MISCONDUCT MR D'AMATO SAID I'M DISAPPOINTED BUT NOT SURPRISED BY MR RIEGLE'S DECISION HE VOWED TO PUSH THE BANKING COMMITTEE TO HOLD A HEARING BUT IT'S UNLIKELY THAT THE PANEL'S EIGHT REPUBLICANS WILL BE ABLE TO WIN ENOUGH SUPPORT AMONG THE 11 DEMOCRATS TO ACHIEVE THE MAJORITY NEEDED TO FORCE A HEARING THE CLINTONS' DECISION TO SEND THE DOCUMENTS TO THE JUSTICE DEPARTMENT CAME SOON AFTER IOWA REP JIM LEACH THE SENIOR REPUBLICAN ON THE HOUSE BANKING COMMITTEE ASKED THE CLINTONS' PERSONAL ATTORNEY DAVID KENDALL TO GIVE THE FILES TO HIS STAFF FOR AN INVESTIGATION WHITE HOUSE AIDES SAID THAT REPUBLICAN REQUESTS FOR THE DOCUMENTS WERE MEANT TO DISCREDIT MR CLINTON POLITICALLY RATHER THAN RESOLVE ANY POSSIBLE WRONGDOING BY MR MCDOUGAL OR OTHERS THEY ALSO SAID THAT HANDING THE FILES TO THE PUBLIC OR TO LAWMAKERS WOULD ONLY EXACERBATE THE CONFUSION SURROUNDING THE DOCUMENTS THE AIDES SAID THE DOCUMENTATION IS INCOMPLETE BECAUSE THE CLINTONS WEREN'T OFFICERS OF THE CORPORATION AND WEREN'T MADE AWARE OF ITS OPERATIONS BESIDES THE AIDES SAID MR CLINTON HAS THE RIGHT TO KEEP SOME OF HIS PRIVATE DEALINGS PRIVATE THE JUSTICE DEPARTMENT IS LOOKING INTO WHETHER MR MCDOUGAL USED MADISON GUARANTY TO DIVERT MONEY INTO WHITEWATER IMPROPERLY THERE ALSO HAVE BEEN ALLEGATIONS THAT MADISON PAID CERTAIN CAMPAIGN AND OTHER DEBTS OF THE CLINTONS A QUESTIONABLE PRACTICE THE THRIFT HAS BEEN DECLARED INSOLVENT AND FEDERAL TAXPAYERS HAVE HAD TO PICK UP THE TAB TO PROTECT DEPOSITORS ESTIMATED TO BE ABOUT 60 MILLION BECAUSE SOME OF THE CLINTONS' WHITEWATER DOCUMENTS WERE PREPARED BY MR FOSTER AND KEPT IN HIS OFFICE THEY MIGHT ALSO BE USEFUL TO THE JUSTICE DEPARTMENT'S PROBE INTO SOME OF THE CIRCUMSTANCES OF HIS SUICIDE JULY 20 9312270118 931227 RENO RECOMMENDS SCHIFFER TO HEAD ENVIRONMENT ARM WASHINGTON ATTORNEY GENERAL JANET RENO RECOMMENDED LOIS SCHIFFER A DEPUTY ASSISTANT ATTORNEY GENERAL TO RUN THE JUSTICE DEPARTMENT'S ENVIRONMENT AND NATURALRESOURCES DIVISION PRESIDENT CLINTON IS EXPECTED TO NOMINATE MS SCHIFFER OFFICIALLY AFTER CONGRESS RETURNS FROM RECESS IN JANUARY MS SCHIFFER A 1969 GRADUATE OF HARVARD LAW SCHOOL WORKED IN THE DIVISION FROM 1978 TO 1984 LOIS BRINGS A STRONG BACKGROUND IN ENVIRONMENTAL ISSUES AND A BROAD RANGE OF EXPERIENCE IN GOVERNMENT CORPORATE AND PUBLICINTEREST LAW MS RENO SAID THAT EARLIER GOVERNMENT EXPERIENCE MAKES SOME CRITICS OF THE DIVISION CAUTIOUS ABOUT MS SCHIFFER'S APPOINTMENT INVESTIGATIONS OF THE DIVISION HAVE IDENTIFIED A CULTURE WITHIN THE DEPARTMENT OF JUSTICE TO HAMPER ENVIRONMENTAL CRIMINAL PROSECUTIONS SAID JONATHAN TURLEY AN ENVIRONMENTALLAW PROFESSOR AT GEORGE WASHINGTON UNIVERSITY IN WASHINGTON MS SCHIFFER HE SAID SHOULD DEMONSTRATE A WILLINGNESS TO CLEAN HOUSE IN THE DIVISION 9312270117 931227 METALLGESELLSCHAFT PLANS TO REORGANIZE BUT RUMORS TEMPER MARKET CONFIDENCE BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT ONCE ONE OF GERMANY'S BLUE CHIPS METALLGESELLSCHAFT AG'S BATTERED STOCK COULD BE ONE OF EUROPE'S NEXT BIG GAINERS OR A TICKET TO FRESH DISASTERS THE FUTURE OF THE FINANCIALLY TROUBLED GERMAN METALS AND ENGINEERING GROUP IS CLOUDED BY RUMORS AS NEW MANAGEMENT SETTLES IN ITS SHARES LOST MORE THAN ONE BILLION MARKS 5879 MILLION IN MARKET VALUE FROM A 40 PLUNGE THAT STARTED IN MIDNOVEMBER WHEN REPORTS EMERGED OF POTENTIALLY DEEP TRADING LOSSES IN THE OILFUTURES MARKET WITH THE COMPANY'S ACCOUNTS NOW BEING REAUDITED MANY ANALYSTS FEAR OTHER SKELETONS MIGHT TUMBLE OUT OF THE CLOSET WHERE THE STOCK GOES FROM HERE IS A HOT QUESTION SAID STEFAN ERMISCH AN ANALYST AT MERCK FINCK & CO TOO MANY INVESTORS HAVE LOST CONFIDENCE IN METALLGESELLSCHAFT AND THE STOCK IS BESIEGED BY RUMORS IN A VAGUELY WORDED STATEMENT LAST WEEK METALLGESELLSCHAFT SAID IT PLANS A REORGANIZATION TO REFOCUS ON ITS CORE ACTIVITIES INCLUDING METALS TRADING AND ENGINEERING SERVICES IT WAS THE FIRST OFFICIAL INDICATION THAT MANAGEMENT MIGHT CONSIDER DIVESTITURES TO GENERATE CASH THE COMPANY ALSO SAID OTHER STEPS MIGHT INCLUDE CAPITAL MEASURES WHICH WEREN'T SPECIFIED THE COMPANY'S NEW CHAIRMAN CORPORATERESTRUCTURING EXPERT KAJO NEUKIRCHEN HAS HAD THE JOB ONLY A WEEK OR SO BUT THE STATEMENT LEFT THE MARKET STILL LOOKING FOR ANSWERS ON THE SCOPE OF POTENTIAL LOSSES FROM OILFUTURES CONTRACTS WHICH SOME ANALYSTS SAY COULD REACH ONE BILLION MARKS ADDITIONALLY IT ISN'T YET CLEAR HOW A RESTATEMENT OF ACCOUNTS FOR THE FISCAL YEAR ENDED SEPT 30 MIGHT AFFECT THE PREVIOUSLY REPORTED PRETAX LOSS OF 347 MILLION MARKS BUT PERHAPS WORST OF ALL THE COMPANY'S STATEMENT LEFT THE MARKET TO SPECULATE ON WHAT IS MEANT BY CAPITAL MEASURES WE NEED A THOROUGH ACCOUNTING OF THE COMPANY'S FINANCIAL SITUATION AND CLEAR CONCEPT FOR ITS FUTURE STRATEGY SAID MICHAEL BROEKER AN ANALYST FOR BANK JULIUS BAER IN FRANKFURT UNTIL THEN THE MARKET WILL REACT TO EVERY KERNEL OF GOOD OR BAD NEWS FOR INSTANCE ANALYSTS TRACED TUESDAY'S 11 DROP IN METALLGESELLSCHAFT'S STOCK TO A FIVEYEAR LOW OF 255 MARKS 14991 TO SPECULATION THAT THE COMPANY WAS ABOUT TO APPLY FOR COURTDIRECTED INSOLVENCY PROCEEDINGS AND TO RUMORS THAT IT WAS PLANNING THE SALE OF ITS PROFITABLE METALLBANK GMBH MERCHANTBANKING UNIT AT THE SAME TIME THERE WAS SPECULATION THAT METALLGESELLSCHAFT WAS CONSIDERING TAPPING ITS EQUITY BASE TO GENERATE CASH WHICH WOULD REDUCE STOCK VALUES A COMPANY SPOKESMAN DECLINED TO COMMENT ON THE RUMORS METALLGESELLSCHAFT'S SHARES RALLIED WEDNESDAY TO CLOSE UP 16 AT 259 MARKSTHOUGH IT TRADED AS HIGH AS 267 MARKS IN THE COURSE OF THE DAY ON THURSDAY IT ROSE AGAIN TO 2605 MARKS ANALYSTS SAID THE BOUNCE CAME ON PERCEPTIONS THAT 250 MARKS IS AS LOW AS THE STOCK COULD FALL YET LAST WEEK'S DROP BROKE THROUGH THE 280MARK LEVEL THAT MANY ANALYSTS ONLY A WEEK EARLIER CONSIDERED THE FLOOR SOME BELIEVE THE RISK IS LIMITED BY THE COMPANY'S TWO FINANCIALLY POWERFUL SHAREHOLDERS DEUTSCHE BANK AG AND DRESDNER BANK AG BOTH ALREADY HAVE EXTENDED EMERGENCY CREDIT LINES TO THE COMPANY AND ARE EXPECTED TO PROVIDE FURTHER ASSISTANCE AS METALLGESELLSCHAFT REORGANIZES I CAN'T IMAGINE DEUTSCHE BANK AND DRESDNER BANK LETTING A PROMINENT GERMAN COMPANY LIKE METALLGESELLSCHAFT GO UNDER SAID JULIUS BAER'S MR BROEKER MOREOVER HE ESTIMATED THE COMPANY HAS 17 BILLION MARKS IN RETAINED EARNINGS THAT COULD BE USED TO COVER POTENTIAL OILTRADING LOSSES MAKING A FORAY INTO THE EQUITY BASE UNNECESSARY ANALYSTS ALSO DISCOUNTED SPECULATION THAT THE COMPANY WOULD SELL ITS METALLBANK UNIT INSTEAD MANY TARGETED THE MONEYLOSING KOLBENSCHMIDT AG AUTOPARTS MAKER AS A CHIEF CANDIDATE FOR DISVESTITURE THEY HAVE TO COMPLETELY RESTRUCTURE A GROUP THAT HAS BECOME TOO UNWIELDY SAID MERCK FINCK'S MR ERMISCH BUT METALLGESELLSCHAFT'S TROUBLES GO DEEPER THAN A SHORTTERM LIQUIDITY CRISIS RISING FROM EXPOSURE IN OIL MARKETS HE SAID HE POINTED OUT THAT IT IS SADDLED WITH SHORTTERM DEBT OF 87 BILLION MARKS FOLLOWING A FOURYEAR ACQUISITION SPREE BY ITS FORMER CHAIRMAN HEINZ SCHIMMELBUSCH WHO WAS DISMISSED THIS MONTH BY HIS SUPERVISORY BOARD 9312270116 931227 CORPORATE FOCUS BAXTER PRESIDENT'S DEPARTURE COULD HAVE LASTING EFFECT TOBIN WAS VIEWED ON WALL STREET AS THE KEY TO COMPANY'S TURNAROUND BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL THE ABRUPT DEPARTURE LAST WEEK OF BAXTER INTERNATIONAL INC'S PRESIDENT LEAVES THE HOSPITALSUPPLY COMPANY WITHOUT THE KEY EXECUTIVE WHOM WALL STREET HAD BEEN COUNTING ON TO STEER THE COMPANY BACK TO HEALTH THE DEERFIELD ILL COMPANY SAYS JAMES R TOBIN PRESIDENT AND CHIEF OPERATING OFFICER SINCE MARCH 1992 RESIGNED TO PURSUE A NEW CHALLENGE BUT PEOPLE FAMILIAR WITH THE EVENTS SAY MR TOBIN LEFT PRIMARILY BECAUSE HE VIEWED A RECENTLY ANNOUNCED RESTRUCTURING AS WOEFULLY INADEQUATE THE 49YEAROLD CAREER BAXTER EXECUTIVE HAD BEEN PRESSING HIS BOSS CHAIRMAN AND CHIEF EXECUTIVE OFFICER VERNON R LOUCKS JR TO MAKE A BIGGER MOVE AND SPIN OFF AS MUCH AS HALF THE COMPANY INCLUDING THE BUSINESS OF DISTRIBUTING HEALTHCARE PRODUCTS TO HOSPITALS AND LABORATORIES WHICH HAS ANNUAL SALES OF 25 BILLION MR TOBIN DIDN'T RETURN PHONE CALLS SEEKING COMMENT BUT HAS TOLD COLLEAGUES HIS ACCOUNT OF HOW HIS RELATIONSHIP WITH MR LOUCKS DETERIORATED HIS DEPARTURE COULD HAVE LASTING EFFECTS WALL STREET VIEWED MR TOBIN AS THE ONE EXECUTIVE MOST ABLE TO REVERSE BAXTER'S CURRENT EARNINGS AND SHAREPRICE SLIDE CERTAINLY FROM AN OPERATING PERSPECTIVE PEOPLE THINK TOBIN WAS THE PERSON WHO COULD GET THINGS DONE SAYS ANALYST DANIEL LEMAITRE OF COWEN & CO BAXTER SHAREHOLDERS ARE NOT GOING TO BE A VERY HAPPY GROUP BAXTER'S SHARE PRICE ALREADY HAS SLID IN THE PAST YEAR FROM THE MID30S TO THE LOW 20S IN BIG BOARD TRADING THURSDAY AFTER NEWS OF MR TOBIN'S MOVE BECAME KNOWN BAXTER STOCK CLOSED AT 23 DOWN 50 CENTS BAXTER'S WOES ARE EXTENSIVE AND ITS COMPETITION JUST GOT MUCH MORE FORMIDABLE ITS CHIEF HOSPITALSUPPLY RIVAL OWENS & MINOR INC AGREED TO ACQUIRE ANOTHER BIG COMPETITOR STUART MEDICAL INC IN A TRANSACTION EXPECTED TO CLOSE IN APRIL THAT WOULD NEARLY DOUBLE OWENS & MINOR'S SALES BAXTER'S THIRDQUARTER EARNINGS OF 49 CENTS A SHARE WERE DOWN FROM 61 CENTS A YEAR EARLIER AND THE COMPANY EXPECTS A FULLYEAR LOSS DUE TO A FOURTHQUARTER 925 MILLION CHARGE MOSTLY FOR RESTRUCTURING THIS YEAR HAS BEEN A PAINFUL AND TUMULTUOUS ONE FOR BAXTER IT PLEADED GUILTY TO A FEDERAL FELONY RELATED TO THE ARAB ECONOMIC BOYCOTT OF ISRAEL AND FOR FOUR MONTHS WAS SUSPENDED FROM NEW FEDERAL CONTRACTS UNTIL THE SUSPENSION WAS LIFTED LAST WEEK MOREOVER THE CORE US HOSPITAL BUSINESS WHICH MADE UP ABOUT HALF OF THE COMPANY'S 85 BILLION IN 1992 SALES IS ESPECIALLY BELEAGUERED PEOPLE FAMILIAR WITH BAXTER'S INTERNAL 1993 BUDGET PLAN SAY THAT IT CALLED FOR THE DIVISION TO GARNER SOME 600 MILLION IN PRETAX EARNINGS BUT THAT EARNINGS ARE LIKELY TO HIT ONLY ABOUT 450 MILLION INSTEAD MR LOUCKS DECLINED TO COMMENT ON THESE FIGURES THAT SHORTFALL IS IN PART WHAT MR TOBIN HAD HOPED TO ADDRESS IMMEDIATELY PEOPLE FAMILIAR WITH THE SENIOR EXECUTIVES' TALKS SAY BAXTER'S HOSPITAL DIVISION COMPRISES TWO PARTS PRODUCTS SUCH AS GLOVES AND SURGICAL KITS THAT BAXTER ITSELF MANUFACTURES AND THE LOWMARGIN HIGHVOLUME DISTRIBUTION TO HOSPITALS OF OTHER COMPANIES' PRODUCTS A BUSINESS IT ACQUIRED IN A 1985 MERGER WITH AMERICAN HOSPITAL SUPPLY CORP THERE IS TENSION BETWEEN THE TWO PARTS OF BAXTER'S HOSPITAL BUSINESS MANY HOSPITALPROCUREMENT OFFICIALS ARE SUSPICIOUS THAT BAXTER MAY NOT OFFER THE BEST DEALS ON DISTRIBUTED PRODUCTS BECAUSE IT IS PUSHING ITS OWN SUPPLIES THAT CARRY HIGHER PROFIT MARGINS A CONTENTION BAXTER DISPUTES ALSO THE MARRIAGE OF BAXTER AND AMERICAN HAS ALWAYS BEEN AN UNEASY ONE AS A RESULT OF DIFFERING CORPORATE CULTURES MOST OF THE FORMER AMERICAN EXECUTIVES AND MANY OF ITS BEST SALES REPRESENTATIVES LEFT AFTER THE MERGER MR TOBIN ARGUED FOR SPINNING OFF THE DISTRIBUTION BUSINESS AND OTHER PARTS OF BAXTER A MOVE THAT IN EFFECT WOULD LARGELY TEAR APART THE 1985 MERGER WHICH MR LOUCKS SPEARHEADED PEOPLE FAMILIAR WITH THE DELIBERATIONS OF BAXTER'S BOARD SAY SOME DIRECTORS HAVE BEEN DISSATISFIED TOO WITH THE RECENT DIRECTION OF THE COMPANY BUT MR LOUCKS MAY HAVE JUST IMPROVED HIS DEALINGS WITH THE BOARD ONE DIRECTOR DESCRIBED AS DISSATISFIED WILBUR H GANTZ ANNOUNCED HIS RESIGNATION LAST WEEK MR TOBIN TOO WILL DROP OFF THE BOARD MR GANTZ DIDN'T RETURN PHONE CALLS SEEKING COMMENT MR LOUCKS IN AN INTERVIEW PLAYED DOWN THE DISAGREEMENTS WITH MR TOBIN THOUGH IN A WRITTEN STATEMENT THE CHAIRMAN POINTEDLY SAID WHEN A COMPANY TAKES A STRATEGIC COURSE AS SIGNIFICANT AS OURS IT'S ESSENTIAL THAT ALL THE TOP MANAGERS FULLY SUPPORT IT MR LOUCKS SAYS POSSIBLE EARNINGS IMPROVEMENTS AT BAXTER WILL LARGELY COME FROM INCREASED RESEARCH AND DEVELOPMENT IN ITS POTENTIALLY MOREPROFITABLE OPERATIONS SUCH AS BIOTECHNOLOGY VENTURES KIDNEY DIALYSIS BLOOD RESEARCH AND CARDIOVASCULAR BUSINESSES THE RESTRUCTURING HE SAYS WILL DIRECT MORE MONEY TO SUCH RESEARCH AND DEVELOPMENT IT'S NOT THAT WE'RE UNCONSCIOUS OF THE DIFFICULTIES IN THE HOSPITAL BUSINESS HE SAYS BUT YOU HAVE TO CONSIDER THE ENORMOUS MAGNITUDE OF WHAT WE'RE ALREADY UNDERTAKING WITH THE RESTRUCTURING MANY ON WALL STREET HAD ONCE SEEN MR TOBIN AS THE HEIR APPARENT TO MR LOUCKS 59 YEARS OLD THERE NEVER WAS A DECISIVE BLOWUP BETWEEN THEM BUT IN THE PAST FEW MONTHS A SHARP DIVERGENCE OF VIEWS EMERGED AND THEIR RELATIONSHIP DETERIORATED ACCORDING TO PEOPLE FAMILIAR WITH THE EVENTS ONE ISSUE WAS THE SUGGESTED SPINOFF AND ANOTHER WAS HOW AND WHEN TO STREAMLINE THE COMPANY'S HOSPITAL SALES FORCE MR LOUCKS WANTED TO MOVE ON CREATING MORE EFFICIENCY IN THAT SYSTEM RIGHT AWAY BUT MR TOBIN ARGUED THAT PULLING TOO MANY SALES PEOPLE OUT OF A HOSPITAL TOO SOON WOULD MAKE IT APPEAR THAT BAXTER WAS ENGAGING IN WHAT HE TERMED UNILATERAL DISARMAMENT ACCORDING TO PEOPLE FAMILIAR WITH THE DISCUSSIONS THESE PEOPLE SAY MR LOUCKS MOVED AHEAD ON THIS INITIATIVE ANYWAY ASSIGNING IT TO LESTER B KNIGHT 35 THE EXECUTIVE VICE PRESIDENT WHO HEADS THE HOSPITAL BUSINESS BAXTER OFFICIALS SAY THAT IN RECENT MONTHS MR KNIGHT HAS CLEARLY EMERGED AS MR LOUCKS'S PROTEGE AND EVEN AS A POSSIBLE SUCCESSOR MR KNIGHT IS THE SON OF BAXTER DIRECTOR CHARLES F KNIGHT CHAIRMAN OF EMERSON ELECTRIC CO WHERE ONE OF MR LOUCKS'S SONS WORKS FINALLY AT A SATURDAY MORNING BREAKFAST IN SEPTEMBER AT A RESTAURANT ON CHICAGO'S SUBURBAN NORTH SHORE MR LOUCKS TOLD MR TOBIN HE WAS DISSATISFIED WITH THE WAY THINGS WERE RUNNING PEOPLE INFORMED ABOUT THE CONVERSATION SAY MR LOUCKS NOTIFIED MR TOBIN HE WOULD BE REMOVED FROM DIRECT RESPONSIBILITY FOR THE KEY HOSPITAL DIVISION AND THAT LESTER KNIGHT AND THE DIVISION WOULD REPORT DIRECTLY TO MR LOUCKS IRONICALLY MR LOUCKS NOW HINTS IN AN INTERVIEW HE MAY AT SOME POINT CONSIDER SOME VERSION OF THE SPINOFF MR TOBIN HAD URGED HE HAS NO PLANS TO DO THIS SOON HE SAYS BUT NOTHING IS FOREVER AND EVER MARCH 25 BAXTER PLEADS GUILTY TO A FEDERAL FELONY CHARGE OF VIOLATING THE LAW AGAINST COOPERATING WITH THE ARAB BOYCOTT OF ISRAEL APRIL 20 SENIOR VICE PRESIDENT AND GENERAL COUNSEL G MARSHALL ABBEY QUITS OVER HIS DEALINGS IN THE MIDDLE EAST THAT LED TO THE GUILTY PLEA MAY 12 COMPANY AGREES TO PAY RHONEPOULENC RORER INC 105 MILLION TO SETTLE PATENT LITIGATION OVER A CLOTTING FACTOR FOR HEMOPHILIACS MAY 25 PREMIER HOSPITALS ALLIANCE SAYS IT WILL REDUCE BUSINESS WITH BAXTER OVER ITS ETHICS AND BUSINESS PRACTICES INCLUDING THE BOYCOTT GUILTY PLEA AUGUST 15 US DEPARTMENT OF VETERANS AFFAIRS SUSPENDS BAXTER FROM NEW BUSINESS WITH THE US GOVERNMENT SEPTEMBER 7 BAXTER SAYS LESTER B KNIGHT HEAD OF CORE HOSPITAL BUSINESS WILL NO LONGER REPORT TO PRESIDENT JAMES R TOBIN AND WILL REPORT DIRECTLY TO CHAIRMAN VERNON R LOUCKS JR ALSO MR LOUCKS SAYS OUR OUTLOOK FOR 1993 IS NOT WHAT WE WOULD LIKE IT TO BE NOVEMBER 16 BAXTER SAYS IT WILL TAKE 925 MILLION IN FOURTHQUARTER CHARGES AND PLANS TO CUT 4500 JOBS THE COMPANY SAID IT EXPECTS FOURTHQUARTER AND FULLYEAR LOSSES ALSO AN OFFICE OF THE CHIEF EXECUTIVE IS CREATED MR TOBIN IS ONE OF FOUR MEMBERS DECEMBER 22 VETERANS AGENCY LIFTS SUSPENSION DECEMBER 23 MR TOBIN RESIGNS AND WILBUR H GANTZ SAYS HE WILL LEAVE AS A DIRECTOR 9312270115 931227 BUSINESS BRIEF BENSON EYECARE CORP CONCERN TO BUY NEWELL UNIT IN 125 MILLION TRANSACTION BENSON EYECARE CORP RYE NY SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE EYEGLASS MAKER OPTIRAY INC FROM NEWELL CO FREEPORT ILL FOR ABOUT 125 MILLION OPTIRAY HAS SALES OF MORE THAN 30 MILLION AND DISTRIBUTES READYTOWEAR READING GLASSES AND SUNGLASSES UNDER THE OPTIRAY BARBIE FOR GIRLS COPPERTONE AND REVLON NAMES AMONG OTHERS BENSON SAID THE ACQUISITION WHICH IS SUBJECT TO APPROVALS WOULD ENHANCE ITS POSITION AS A DISTRIBUTOR OF READING GLASSES AND SUNGLASSES TO MASS MERCHANDISERS AND DRUGSTORES 9312270114 931227 LETTERS TO THE EDITOR ARTISAN'S SKILL NEEDED TO CREATE A TYPEFACE AS ONE OF THE PLAINTIFFS IN THE LAWSUIT BROUGHT AGAINST SWFTE I WAS QUITE DISAPPOINTED WITH YOUR NOV 19 ARTICLE FONT WAR THAT'S MY TYPE YOUR ASSUMPTION THAT 30 YEARS AGO TYPEFACES REQUIRED PAINSTAKING ARTISANSHIP WHILE TODAY DUE TO THE COMPUTER IT IS SIMPLY A MATTER OF CONNECTTHEDOTS IS LIKE SAYING THAT 30 YEARS AGO IT TOOK SINCERE INVESTIGATIVE JOURNALISM TO PUT A NEWSPAPER TOGETHER WHEREAS TODAY ALL IT TAKES IS STRINGING TOGETHER A BUNCH OF READYMADE PRESS RELEASES THE TYPE ARTISAN HAS NEVER BEEN ELIMINATED AND THE CRAFT AND DEMAND OF CREATING NEW AND ORIGINAL TYPEFACES HAS NEVER BEEN MORE ALIVE TODAY'S TYPE ARTISAN IS A HIGHLY SKILLED PROFESSIONAL DESIGNER AND COMPUTER PROGRAMMER IT IS AN INSULT TO CONTEMPORARY TYPE DESIGNERS AND BLATANTLY SHOWS HOW LITTLE YOU KNOW ABOUT THIS PROFESSION TO SAY THAT THE PROGRAMS CAN TURN A TYPEFACE INTO BOLDFACE OR ITALIC AND ALL THE DESIGNER DOES IS POLISH THE APPEARANCE THAT'S LIKE SAYING THAT WRITING IS SIMPLY A MATTER OF TYPING OBVIOUSLY SWFTE KNOWS THAT IT TAKES AN INCREDIBLE INVESTMENT OF TIME AND EXPERTISE TO CREATE A SELLABLE TYPEFACE THAT'S WHY THEY COPY FONTS INSTEAD OF CREATING THEM FROM SCRATCH OF THE NEARLY 100 FONTS THAT SWFTE COPIED TO CREATE TYPECASE III 34 WERE HIGHLY IDIOSYNCRATIC AND MUCHSOUGHTAFTER TYPE DESIGNS FIRST RELEASED BY OUR COMPANY EMIGRE GRAPHICS MOST OF THESE FONTS WERE CREATED WITHIN THE PAST TWO YEARS BY TALENTED YOUNG TYPEFACE DESIGNERS MANY WITH MA DEGREES IN DESIGN OF THE THOUSANDS OF COPIES THAT SWFTE WILL SELL THESE DESIGNERS WILL RECEIVE ABSOLUTELY ZERO ROYALTIES AND WE CAN DO NOTHING ABOUT THAT ALTHOUGH WE ARE PAINFULLY AWARE OF THE FACT THAT THE DESIGN OF A TYPEFACE CANNOT BE COPYRIGHTED IT IS A BLOW BELOW THE BELT WHEN IN ADDITION YOU BELITTLE THE EFFORT AND EXPERTISE IT TAKES TO CREATE ORIGINAL TYPEFACE DESIGNS 9312270113 931227 OTTO KERN CAUGHT IN UPROAR OVER ADS LINKED TO THE BIBLE GERMAN CLOTHING FIRM AGREES TO WITHDRAW AD SHOWING TOPLESS WOMEN AND JESUS BY NIKKI HOUSTONWAESCH SPECIAL TO THE WALL STREET JOURNAL IS THE WORLD BIG ENOUGH FOR ANOTHER CLOTHING COMPANY THAT FANCIES SHOCKVALUE ADS GERMAN CLOTHES MAKER OTTO KERN & CO IS CAUGHT IN CONTROVERSY AFTER THE PUBLICATION OF THE FIRST IN A SERIES OF ADVERTISEMENTS BASED ON BIBLICAL MOTIFS NO FOR ONCE IT ISN'T BENETTON UP TO ITS OLD TRICKS THE FASHION DESIGNER'S AD PORTRAYS A GROUP SITTING AROUND A TABLE IN POSES SIMILAR TO THOSE IN THE PAINTING THE LAST SUPPER EXCEPT THAT THE 12 DISCIPLES SURROUNDING THE BEARDED MAN IN A WHITE SHIRT ARE TOPLESS WOMEN IN JEANS THE CAMPAIGN'S VOCAL CRITICS HEADED BY THE GERMAN CENTRAL ADVERTISING BOARD A SELFDISCIPLINARY BODY DESIGNED TO KEEP ADVERTISERS IN CHECK WITHOUT USING LEGAL ACTION SAY MARKETERS SHOULDN'T BE PERMITTED TO CAPITALIZE ON RELIGIOUS FEELINGS TO SELL A PRODUCT THEY ALSO LAMENT THERE'S NO CLEARCUT CONNECTION BETWEEN THE PRODUCT AND THE SCENARIO DEPICTED IN THE AD BUT THE TEXTILES MAKER INSISTS THAT THE AD'S MESSAGE IS POSITIVE AND MODERN IF THERE WERE BIBLICAL SCENES TODAY PEOPLE WOULD BE WEARING JEANS SAYS SABINE SCHMIDT A SPOKESWOMAN FOR MMK THE HAMBURG AGENCY THAT CREATED THE CAMPAIGN YES BUT MANY PEOPLE WONDER IF THEY WOULDN'T BE WEARING SHIRTS TOO THE CENTRAL ORGANIZATION FOR FIGHTING UNFAIR COMPETITION BEGAN LEGAL PROCEEDINGS BUT A SETTLEMENT WAS REACHED OUTSIDE COURT WHEN OTTO KERN VOLUNTARILY AGREED TO WITHDRAW THE AD FROM THE CAMPAIGN IT WASN'T OUR INTENTION TO SHOCK PEOPLE THAT'S WHY IT'S ESPECIALLY IRRITATING TO BE COMPARED TO BENETTON MS SCHMIDT CONTENDS WE WANT TO SHOW BEAUTIFUL PHOTOGRAPHS THAT CREATE POSITIVE IMAGES THE AGENCY ALSO DENIES CRITICISMS THAT THE AD'S TOPLESS WOMEN ENCOURAGE SEXIST VIEWS A CAPTION BELOW THE PHOTOGRAPH READS WE WISH WITH JESUS THAT MEN LEARN TO RESPECT WOMEN THE PHOTOGRAPHER HORST WACHERBARTH SAYS HIS WORK HAS BEEN MISINTERPRETED BY THE PUBLIC I TOOK THIS PICTURE WITH BOTH YOUNG MEN AND YOUNG WOMEN CHANGING THE CAPTION ACCORDINGLY HE SAYS MR WACHERBARTH SAYS THE COMPANY DECIDED TO WITHDRAW THIS PARTICULAR AD FROM THE SERIES BECAUSE MANY PEOPLE TOOK IT THE WRONG WAY THE BONNBASED ADVERTISING BOARD IS ALSO TRYING TO BLOCK THE CAMPAIGN'S OTHER 19 ADVERTISEMENTS TWO OTHER ADS LAUNCHED ALREADY ALSO HAVE RELIGIOUS THEMES BUT ARE BLACKANDWHITE PHOTOGRAPHS FEATURING FULLY DRESSED PEOPLE ONE AD SHOWS JOSEPH AND MARY WHO IS RIDING A DONKEY IN CASUAL CLOTHES A CAPTION SAYS WE WISH ALONG WITH JOSEPH THAT NO ONE NEED FLEE THEIR HOMELAND MR WACHERBARTH STANDS BY HIS WORK WE'VE GOT TO PUT AN END TO THIS HE SAYS THIS TIME WE'LL FIGHT OUR WAY THROUGH IF NEED BE ALL THE WAY TO THE EUROPEAN COURTS AND WE HAVE THE GREEN LIGHT FROM OTTO KERN TO DO SO 9312270112 931227 TECHNOLOGY MEDICAID ABORTION POLICY CALLS FOR STATE FINANCING WASHINGTON AP THE CLINTON ADMINISTRATION WILL REQUIRE STATES TO FINANCE MEDICAID ABORTIONS IN CASES OF RAPE OR INCEST OR IF THE WOMAN'S LIFE IS ENDANGERED THE NEW RULES WHICH COVER ABORTIONS RETROACTIVE TO OCT 1 MAKE IT EASIER FOR STATES TO GET FEDERAL REIMBURSEMENTS SAID MEDICAID ADMINISTRATOR BRUCE VLADECK ADDING THAT THE POLICY WILL BE SENT TO THE STATES BY YEAR'S END THE BUSH AND REAGAN ADMINISTRATIONS ALLOWED STATES TO DECIDE WHETHER TO PAY FOR MEDICAID ABORTIONS FOR LOWINCOME WOMEN STATES WERE PERMITTED TO SEEK FEDERAL MATCHING FUNDS ONLY IF THE LIFE OF THE WOMAN WAS ENDANGERED RESTRICTIONS ON MEDICAID FUNDING FOR ABORTION WERE EASED SLIGHTLY IN THE HEALTH AND HUMAN SERVICES APPROPRIATION BILL PASSED BY CONGRESS THIS YEAR THE NEW POLICY MAKES IT MANDATORY FOR STATES TO PAY FOR THE PROCEDURE WITH FEDERAL MATCHING FUNDS IN CASES OF RAPE INCEST OR IF THE WOMAN'S LIFE WOULD BE ENDANGERED BY CONTINUING THE PREGNANCY MEDICAID COVERAGE FOR MOST ABORTIONS STILL WOULD BE BARRED WILLIAM HAMILTON VICE PRESIDENT OF PUBLIC AFFAIRS FOR THE PLANNED PARENTHOOD FEDERATION OF AMERICA SAID THE CHANGE WOULD AFFECT NO MORE THAN A FEW HUNDRED LOWINCOME WOMEN BECAUSE THE LAW IS STILL SO RESTRICTIVE 9312270111 931227 COMMODITIES ORANGE JUICE PRICES MAY BE VOLATILE AMID EXPECTATION OF FROST IN FLORIDA BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL ORANGEJUICE FUTURES PRICES MAY BE VOLATILE IN A THIN HOLIDAY MARKET THIS WEEK AS TRADERS EXPECT FROST IN FLORIDA AT NEW YORK'S COTTON EXCHANGE THE PRICE OF THE JANUARY ORANGEJUICE FUTURES CONTRACT HAS RISEN NEARLY 13 FROM ITS LEVEL OF 9555 CENTS ON NOV 30 SETTLING AT 1079 LAST WEEK IN PART THE RALLY HAS BEEN A REFLECTION OF FEARS OF A FROST THE STRENGTH OF THE RALLY HAS BEEN EXAGGERATED SOMEWHAT BY THE FACT THAT PRICES RESISTED A SEASONAL INCLINATION TO RALLY IN LATE NOVEMBER ANALYSTS SAID TRADITIONALLY INVESTORS START TO LOOK AT OJ AS A FREEZE PLAY IN NOVEMBER BUT THIS YEAR IT DIDN'T HAPPEN IN NOVEMBER SAID BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER THIS IS THE FIRST TIME I CAN REMEMBER THAT IT SEEMS THE SPECULATORS WERE GOING CONTRASEASONAL AND PULLING PRICES DOWN IN LATE NOVEMBER AMONG THE REASONS FOR THE UNUSUAL PRICE DECLINES IN NOVEMBER WAS FALLOUT FROM AN OCTOBER US AGRICULTURE DEPARTMENT REPORT WHICH FORECAST A RELATIVELY STRONG US ORANGE CROP THIS YEAR CONTRARY TO PRIOR EXPECTATIONS IN DECEMBER HOWEVER FUTURES PRICES SHOT HIGHER AFTER REPORTS THAT THE BRAZILIAN ORANGEJUICE CROP MAY BE DISAPPOINTING THESE REPORTS SAID THE CROP HAD BEEN HURT BY DRY WEATHER IN OCTOBER AND NOVEMBER AND BY THE FACT THAT FARMERS BECAUSE OF LOW PRICES HAVE BEEN PROVIDING LESS CARE TO TREES IN BRAZIL ONE BRAZILIAN GROWER'S FORECAST PLACED THE CROP AT ABOUT 230 MILLION BOXES DOWN SUBSTANTIALLY FROM EARLIER EXPECTATIONS OF A CROP OF ABOUT 285 MILLION BOXES YET SOME ANALYSTS ARE SKEPTICAL OF THIS ESTIMATE I DON'T REALLY SEE JUSTIFICATION TO ANTICIPATE A DROP THAT SEVERE SAID SANDRA KAUL ANALYST FOR SMITH BARNEY SHEARSON THE BUZZ OF THE MOMENT IN THE ORANGEJUICE MARKET IS THE POTENTIAL FOR A FREEZE WEATHER FORECASTS CALLED FOR TEMPERATURES IN THE LOW 30S OVER THE WEEKEND FOR PARTS OF NORTHERN FLORIDA SUCH TEMPERATURES HOWEVER AREN'T COLD ENOUGH TO DAMAGE THE CROP TO SIGNIFICANTLY REDUCE YIELDS TEMPERATURES WOULD HAVE TO FALL INTO THE MID20S OR UPPER 20S FOR FOUR CONSECUTIVE HOURS MS KAUL SAID IF TEMPERATURES DON'T REACH THOSE LEVELS THIS WEEK SOME INVESTORS MAY LIQUIDATE THEIR LONG POSITIONS OR WAGERS THAT PRICES WILL RISE SIMPLY THE FORCE OF THIS LIQUIDATION COULD PUSH PRICES DOWN A BIT THIS WEEK IF A FROST FAILS TO MATERIALIZE MR SAVAIKO SAID THE EFFECT OF ANY SUCH TRADING ACTIVITY IS LIKELY TO BE MAGNIFIED BY THE FACT THAT TRADING VOLUME IS LIKELY TO BE THIN DURING THE WEEK BETWEEN THE CHRISTMAS AND NEW YEAR'S HOLIDAYS ANALYSTS SAID 9312270110 931227 INTERNATIONAL PERNOD RICARD PLANS DIVIDEND PARIS PERNOD RICARD SA THE FRENCH DRINKS GROUP SAID IT WILL PAY AN INTERIM DIVIDEND OF 43 FRANCS 742 CENTS A SHARE ON JAN THE COMPANY WHICH PRODUCES SPIRITS WINES AND NONALCOHOLIC BEVERAGES PAID A DIVIDEND OF 85 FRANCS A SHARE ON MAY 17 IN ADDITION TO PERNOD AND RICARD OTHER BRAND NAMES BELONGING TO THE GROUP INCLUDE ORANGINA WILD TURKEY YOOHOO JAMESON AND BUSHMILLS 9312270108 931227 AMERICA WEST GETS BID FROM STEINHARDT TO PUMP 250 MILLION INTO CARRIER BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL AMERICA WEST AIRLINES SAID IT HAS AN OFFER FROM MICHAEL STEINHARDT A NEW YORK MONEY MANAGER TO PUMP 250 MILLION INTO THE COMPANY MORE THAN ENOUGH TO HELP IT EMERGE FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS THE BID FOR CONTROL OF 80 OF THE PHOENIXBASED AIRLINE SEEMED TO STRENGTHEN THE POSITION OF AMERICA WEST CHAIRMAN WA BILL FRANKE WHO IS INVOLVED IN A DISPUTE WITH MICHAEL J CONWAY ITS CHIEF EXECUTIVE MR CONWAY HAD PREVIOUSLY RECRUITED AS INVESTORS THE PRITZKER FAMILY OF CHICAGO WHO OWN THE HYATT HOTEL CHAIN AND NEW YORK INVESTMENT FIRM WERTHEIM SCHRODER & CO THEY LED AN INVESTOR GROUP THAT HAD PUT FORTH A NOWABANDONED 150 MILLION PROPOSAL THAT GROUP PULLED OUT LAST WEEK AND ONE MEMBER OF THE GROUP SAID IT BACKED OUT BECAUSE OF CONFLICTS WITH MR FRANKE MESSRS CONWAY AND FRANKE HAVE BEEN AT ODDS SINCE MR FRANKE A PHOENIX INVESTOR ARRIVED AT THE COMPANY IN 1992 MR CONWAY RECRUITED THE PRITZKERLED GROUP WHICH WOULD LIKELY HAVE KEPT HIM IN CHARGE AND DISMISSED MR FRANKE MR CONWAY SAID YESTERDAY THAT OTHER BIDS MAY FOLLOW THE STEINHARDT GROUP'S OFFER OTHERS ARE STILL LOOKING AT AMERICA WEST HE SAID IN AN INTERVIEW HE ALSO SAID THAT IT WOULD BE INACCURATE TO INTERPRET THE STEINHARDT GROUP'S BID AS FAVORING MR FRANKE THEY HAVE TALKED TO BOTH OF US HE SAID BUT HE DECLINED TO DISCUSS HOW WELL HE OR MR FRANKE MAY KNOW MEMBERS OF THE STEINHARDT GROUP MR FRANKE SAID THAT MR STEINHARDT'S BID IS A REFLECTION OF THE TURNAROUND OF THE COMPANY AND A SPOKESWOMAN FOR THE AIRLINE ADDED YESTERDAY WE DO NEED SOME INVESTMENT THE US BANKRUPTCY COURT IN PHOENIX HAS SET A FEB 10 DEADLINE FOR THE COMPANY TO ACCEPT BIDS OR PROPOSE A SEPARATE PLAN TO EMERGE FROM CHAPTER 11 ON ITS OWN AMERICA WEST'S CHAPTER 11 REORGANIZATION EFFORT IS TWOANDAHALF YEARS OLD THE AIRLINE APPEARS TO BE IN A TURNAROUND MODE IN THE FIRST THREE QUARTERS OF 1993 IT EARNED 268 MILLION OR 108 A SHARE THE AIRLINE'S MANAGERS HAVE BEEN OFFERING THE COMPANY AS AN ATTRACTIVE INVESTMENT CITING ITS RECENT PROFITS DESPITE A LANGUISHING BANKRUPTCY REORGANIZATION EFFORT THE AMERICA WEST SPOKESWOMAN SAID YESTERDAY THAT THE STEINHARDT GROUP'S OFFER EMERGED FROM A TOTAL OF FIVE POTENTIAL INVESTORS AS REPORTED LAST MONTH TWO OF THOSE WERE OTHER AIRLINES INCLUDING UAL CORP'S UNITED AIRLINES ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION MR STEINHARDT WHO TENDS TO TARGET TROUBLED OR BANKRUPT COMPANIES COULDN'T BE REACHED FOR COMMENT FOLLOWING AMERICA WEST'S DISCLOSURE LATE THURSDAY OF HIS OFFER 9312270106 931227 ECONOMY CLINTON TO BOOST MILITARY BUDGET BY 25 BILLION BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS ADDING ABOUT 25 BILLION TO HIS DEFENSE BUDGET REQUEST FOR NEXT YEAR DESPITE PLEAS FROM THE MILITARY FOR MORE MONEY ADMINISTRATION OFFICIALS INSIDE AND OUTSIDE THE PENTAGON SAID WHITE HOUSE BUDGET DIRECTOR LEON PANETTA SAID LAST WEEK THAT MR CLINTON HAD DECIDED TO ASK CONGRESS TO GIVE THE PENTAGON MORE SPENDING AUTHORITY FOR FISCAL 1995 THAN HIS PREVIOUS FIVEYEAR DEFENSE BUDGET CONTEMPLATED BUT THE BUDGET DIRECTOR REFUSED TO BE SPECIFIC THE PREVIOUS CLINTON PLAN CALLED FOR GIVING THE MILITARY 2481 BILLION IN SPENDING AUTHORITY FOR FISCAL 1995 WHICH BEGINS OCT 1 BUT THE MILITARY SOUGHT MORE MONEY TO COPE WITH INFLATION AND UNANTICIPATED CONGRESSIONALLY MANDATED PAY INCREASES ADDING 25 BILLION WOULD BRING THE TOTAL CLOSE TO WHAT CONGRESS APPROPRIATED FOR THE CURRENT FISCAL YEAR TO LIVE WITHIN THE BUDGET PENTAGON OFFICIALS ARE CONTEMPLATING WHAT THEY CALL A PAUSE IN MILITARY CONSTRUCTION IT WOULDN'T BE A FREEZE THEY SAY BECAUSE CERTAIN ENVIRONMENTAL CLEANUP WORK AND WORK RELATED TO CLOSING BASES WOULD CONTINUE IN A HECTIC ROUND OF MEETINGS LAST WEEK SENIOR PENTAGON CIVILIAN OFFICIALS PROPOSED DELAYING THE NAVY'S PLANNED NEW AIRCRAFT CARRIER THE CVN76 TO BE BUILT BY TENNECO INC'S NEWPORT NEWS SHIPBUILDING & DRY DOCK CO THAT PROSPECT APPALLED THE NAVY WHICH EAGERLY AGREED TO ACCELERATE PERSONNEL CUTS IN ORDER TO KEEP THE CARRIER ON TRACK THE CURRENT PLAN IS FOR THE NAVY ROSTER TO SHRINK TO ABOUT 411000 BY 1997 FROM THE CURRENT LEVEL OF ABOUT 500000 THE AIR FORCE MEANWHILE IS DEBATING WHETHER TO RETIRE ITS FORCE OF F111S AND TO MOTHBALL SOME OLDER B52S SAID RETIRED AIR FORCE COL ROBERT GASKIN WHO IS NOW WITH BUSINESS EXECUTIVES FOR NATIONAL SECURITY A WASHINGTON POLICY ANALYSIS GROUP THEY'RE DOING EVERYTHING THEY CAN TO KEEP TO THE MAGIC NUMBER OF 442 F22S THAT'S THE LONGRANGE GOAL HE SAID REFERRING TO THE AIR FORCE'S NEW FIGHTER MR GASKIN ADDED THAT PERSONNEL CUTS OF THE SORT THE NAVY IS CONTEMPLATING ARE PROBABLY INEVITABLE FOR ALL THE SERVICES BECAUSE THAT IS THE ONE PLACE WHERE SAVINGS ARE BOTH QUICKLY OBTAINABLE AND POLITICALLY VIABLE THE ADMINISTRATION HAS VOWED TO MAINTAIN DEFENSE READINESS HE NOTED PROCUREMENT CUTS OFFER DIMINISHING RETURNS BECAUSE FEW BIG PROGRAMS ARE CURRENTLY UNDER WAY AS EACH PROGRAM IS REDUCED THE UNIT COST OF THE WEAPON OBTAINED BEGINS TO SKYROCKET THAT LEAVES FORCE STRUCTURE AS THE LOGICAL PLACE TO LOOK FOR SAVINGS 9312270105 931227 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AMC ENTERTAINMENT INC FILED TO OFFER 4 MILLION CUMULATIVE CONVERTIBLE PREFERRED SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP BEAR STEARNS & CO AND SMITH BARNEY SHEARSON INC DATAMETRICS CORP AN OFFERING OF 2 MILLION COMMON SHARES DOW CHEMICAL CO A SHELF OFFERING OF UP TO 500 MILLION OF DEBT SECURITIES WARRANTS TO PURCHASED DEBT SECURITIES AND SHELF WARRANTS GROUND ROUND RESTAURANTS INC AN OFFERING OF ABOUT 35 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES VIA ALEX BROWN & SONS INC WITH VAN KASPER & CO HOECHST CELANESE CORP A UNIT OF HOECHST CORP A SHELF OFFERING FOR 266150000 OF DEBT SECURITIES AND MEDIUMTERM NOTES VIA CS FIRST BOSTON MICROFRAME INC AN OFFERING OF 800000 COMMON SHARES ONCOR INC AN OFFERING OF UP TO 3450000 MILLION COMMON SHARES STEWART ENTERPRISES INC AN OFFERING OF 24 MILLION COMMON SHARES VIA BEAR STEARNS & CO WESTERN DIGITAL CORP AN OFFERING OF 6124966 COMMON SHARES VIA KIDDER PEABODY & CO AND SALOMON BROTHERS INC 9312270104 931227 MARVIN DAVIS IS SEEKING NEW JERSEY CASINO LICENSE LOS ANGELES BILLIONAIRE INVESTOR MARVIN DAVIS APPLIED FOR A NEW JERSEY LICENSE THAT WOULD ALLOW HIM TO BUY OR CONTROL AN ATLANTIC CITY CASINO THE MOVE UNDERSCORES THE INVESTOR'S BUDDING INTEREST IN GAMBLINGRELATED INVESTMENTS THIS YEAR MR DAVIS PURCHASED A 57 STAKE IN BALLY GAMING INTERNATIONAL INC A GAMBLINGEQUIPMENT MANUFACTURER A SPOKESMAN FOR MR DAVIS DECLINED TO COMMENT ON THE APPLICATION WHICH WAS FILED LAST WEEK 12/20 IT IS UNCLEAR WHETHER MR DAVIS HAS ANY SPECIFIC INVESTMENT IN MIND AS NEW JERSEY LAW ALLOWS INVESTORS TO UNDERGO REGULATORY SCRUTINY BEFORE ANY SPECIFIC TRANSACTION IS PROPOSED MR DAVIS IS KNOWN AS A SHREWD INVESTOR WHO MADE HIS FORTUNE IN OIL ENTERTAINMENT AND REAL ESTATE 9312270103 931227 INTERNATIONAL ELLIOTT CHARGED WITH THEFT AT ELDERS IXL IN LATE '80S SYDNEY AUSTRALIA JOHN ELLIOTT WAS CHARGED WITH THEFT AND CONSPIRACY DURING HIS TENURE AT ELDERS IXL LTD MR ELLIOTT AND TWO OTHER FORMER EXECUTIVES OF ELDERS NOW CALLED FOSTER'S BREWING GROUP LTD WERE CHARGED WITH MISAPPROPRIATING 665 MILLION AUSTRALIAN DOLLARS US452 MILLION FROM ELDERS THROUGH FICTITIOUS FOREIGNEXCHANGE TRANSACTIONS THE FUNDS ALLEGEDLY WERE PAID TO EQUITICORP HOLDINGS LTD A NEW ZEALAND COMPANY CONTROLLED BY ALLAN HAWKINS IN THE LATE 1980S THE PAYMENTS ARE ALLEGED TO BE RELATED TO A FAILED ATTEMPT IN THE 1980S BY THE LATE FINANCIER ROBERT HOLMES A COURT TO TAKE OVER BROKEN HILL PROPRIETARY CO A STEEL MINING AND RESOURCES CONCERN THAT IS AUSTRALIA'S LARGEST COMPANY TO THWART MR HOLMES A COURT ELDERS ENTERED THE FRAY WITH A STAKE IN BHP AND AT ONE POINT EQUITICORP ALSO ACQUIRED A STRATEGIC HOLDING IN BHP MR HAWKINS IS CURRENTLY SERVING A SIXYEAR JAIL SENTENCE IN NEW ZEALAND FOR A VARIETY OF CORPORATE MISDEEDS MR ELLIOTT DENIES ANY WRONGDOING I LOOK FORWARD TO CLEARING MY NAME AT THE EARLIEST POSSIBLE OPPORTUNITY MR ELLIOTT BUILT ELDERS FROM AN AUSTRALIAN JAM MAKER INTO ONE OF THE WORLD'S BIGGEST BREWERS BUT HE RAN INTO TROUBLE IN 1989 AS HE UNSUCCESSFULLY ATTEMPTED TO TIGHTEN HIS GRIP ON THE CONGLOMERATE THROUGH AN AFFILIATED COMPANY OF HIS HIS COMPANY ENDED UP SADDLED WITH DEBT 9312270102 931227 SMALL STOCK FOCUS NEED HELP WITH PICKS TRY THEMES BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS TRYING TO NAVIGATE THROUGH A UNIVERSE OF SMALLCAPITALIZATION STOCKS MAY FIND A HANDY COMPASS IN THEME INVESTING AT BANKERS TRUST CO FUND MANAGERS HAVE DEVELOPED A SET OF 15 THEMES RANGING FROM PRODUCTIVITY ENHANCEMENT TO RETURN TO HOME OWNERSHIP IN AN EFFORT TO MINIMIZE RISK AND MAXIMIZE RETURN IN THE OFTEN VOLATILE AND BEWILDERING SMALLCAP MARKET THE STRATEGY SEEMS TO BE PAYING OFF FOR THE 12MONTH PERIOD ENDED SEPT 30 THE BANK'S SMALL CAPITALIZATION FUND WAS UP 45 FUND MANAGERS SAY THAT WHILE THE RATE OF APPRECIATION HAS SLOWED CONSIDERABLY OVER THE PAST THREE MONTHS AMID A CORRECTION IN SMALLCAP STOCKS THE RETURN OF THE 200 MILLIONASSET FUND STILL COMFORTABLY EXCEEDS GAINS POSTED BY SUCH LEADING SMALLCAP INDEXES AS THE RUSSELL 2000 WHICH IS UP SOME 13 ON THE YEAR THE AVERAGE MARKET CAPITALIZATION OF COMPANIES IN THE FUND WHICH IS OPEN TO INSTITUTIONAL INVESTORS ONLY IS 300 MILLION WE'VE DEVELOPED A THEME APPROACH TO GIVE US REAL DISCIPLINE AND REAL FOCUS IN MANAGING A PORTFOLIO OF ANYWHERE BETWEEN 80 TO 120 STOCKS SAYS VICE PRESIDENT AND PORTFOLIO MANAGER MARY LISANTI WE'RE FOCUSING ON THOSE STRATEGIC CHANGES OCCURING IN THE TECHNOLOGICAL DEMOGRAPHIC AND SOCIOECONOMIC ARENAS THAT WE THINK WILL BE WITH US FOR THE NEXT FIVE TO 10 YEARS SHE NOTES ADDING THAT SPECIFIC STOCK SELECTION IS GEARED TOWARD COMPANIES THAT ARE EXPLOITING THOSE TRENDS AND THAT COMMAND REASONABLE PRICETOEARNINGS MULTIPLES LOOKING FORWARD TO THE NEW YEAR AND ACCELERATED ECONOMIC GROWTH KEY THEMES BEING GIVEN EXTRA WEIGHT IN THE PORTFOLIO ARE PRODUCTIVITY ENHANCEMENT COMPANIES ENGAGED IN TECHNOLOGY BUSINESSES AIMED AT HELPING OTHERS KEEP COSTS AT A MINIMUM AND PRODUCTION AT HIGH LEVELS SUCH AS APPLICATION SOFTWARE ARE LIKELY TO BE STRONG PERFORMERS MS LISANTI SAYS WE'RE PUTTING A HEAVY EMPHASIS ON TECHNOLOGY BECAUSE WE BELIEVE IN A PRODUCTIVITYLED RECOVERY SHE EXPLAINS AMONG HER FAVORITE PICKS IN THIS AREA ARE BROCK CONTROL SYSTEMS AN APPLICATION SOFTWARE COMPANY THAT SHE EXPECTS WILL ACHIEVE 2530 GROWTH OVER THE NEXT THREE YEARS DANKA BUSINESS SYSTEMS A SMALL BUSINESS OFFICESERVICE AND SUPPLY COMPANY WHOSE STOCK HAS BEEN ONE OF THE BEST SMALLCAP PERFORMERS THIS YEAR UP SOME 240 AND LAM RESEARCH A LEADING MANUFACTURER OF ETCHING EQUIPMENT FOR SEMICONDUCTOR CHIPS THE 16 OF THE FUND ALLOCATED TO THIS THEME IS THE LARGEST WEIGHTING WITHIN THE PORTFOLIO HEALTH CARE/INFORMATION SYSTEMS AT 14 OF PORTFOLIO OR DOUBLE THE LATE SEPTEMBER ALLOCATION THIS THEME FOCUSES ON INFORMATIONPROVIDERS TO THE HEALTHCARE INDUSTRY SUCH AS HBO & CO AS WELL AS CERTAIN HEALTHCARE MAINTENANCE ORGANIZATIONS WITH STRONG REGIONAL PENETRATION AND LOW OPERATING COSTS SUCH AS HEALTHSOURCE THESE ARE COMPANIES THAT COULD DO WELL UNDER ANY HEALTHCARE REFORM PACKAGE PASSED BY CONGRESS SAYS MS LISANTI THE MID90S CONSUMER AT 12 AGAIN DOUBLE ITS SEPTEMBER WEIGHTING THIS CONSTELLATION FOCUSES ON WHAT BANKERS TRUST THINKS WILL BE AN ACCELERATION IN CONSUMER SPENDING NEXT YEAR WE THINK CONSUMERS WILL BE MORE VALUECONSCIOUS MORE ENVIRONMENTALLY AWARE AND MORE FOCUSED ON THEIR HEALTH WITH GREATER EMPHASIS ON THE FAMILY AND HOME SHE SAYS A TOP PICK IN THIS GROUP IS WILLIAMSSONOMA A TABLEWARE AND GLASSWARE COMPANY ANOTHER IS URBAN OUTFITTERS IT'S A PLAY ON POLITICALLY CORRECT APPAREL AND ACCESSORIES FOR YOUNG ADULTS SAYS MS LISANTI YOU MIGHT SAY IT'S FOR THOSE WHO THINK THE GAP IS PASSE NATURE'S BOUNTY THE VITAMIN MANUFACTURER AND DISTRIBUTOR ALSO FIGURES PROMINENTLY IN THIS CATEGORY INTEGRATED TELECOMMUNICATIONS AT 10 DOWN A POINT FROM SEPTEMBER IN ALLOCATION THE SECTOR CONCENTRATES ON THE NOTION THAT THE BACKBONE OF THE NEW INFORMATION AGE IS TELECOMMUNICATION VOICE VIDEO AND DATACOMMUNICATIONS TECHNOLOGIES ARE MERGING AND PROVIDING IMPORTANT NICHES TO COMPANIES LIKE ASPECT TELECOMMUNICATION A PROVIDER OF AUTOMATED VOICEPROCESSING SYSTEMS ALSO IN FAVOR IS SUMMA FOUR A NEW ISSUE WHICH MAKES SOFTWARE AND SYSTEMS THAT ALLOW FOR TRANSMISSIONS OF VOICE DATA AND FAX MESSAGES OVER THE TELEPHONE AS WELL AS NATIONWIDE CELLULAR SOME PROMISING LEADINGEDGE FIRMS SUCH AS WIRELESS PAGING COMPANY DIAL PAGE WERE DROPPED FROM THE GROUP BECAUSE WE THOUGHT THEY GOT TOO EXPENSIVE TOO QUICK AND IT SEEMED PRUDENT TO TAKE PROFITS EXPLAINS MS LISANTI HOME OWNERSHIP THIS THEME AT 1 COULD BE UPGRADED THIS YEAR BECAUSE WE FEEL AMERICANS ARE GOING TO CONTINUE TO INVEST IN HOUSING DESPITE RISING INTEREST RATES SHE SAYS STILL THIS CATEGORY HAS BEEN A LOSER FOR THE PAST FEW MONTHS SHEDDING ABOUT 10 OF ITS VALUE AS IT BECAME CLEAR THAT INTEREST RATES MIGHT GO UP WE CUT BACK ON THE INVESTMENT IT'S NOT THAT WE DON'T MAKE MISTAKES BUT WE TRY HARD TO MINIMIZE OUR LOSSES SAYS MS LISANTI SMALLCOMPANY STOCKS ENDED THE THINLY TRADED PREHOLIDAY SESSION MODESTLY HIGHER WITH SMALLSTOCK INDEXES ENDING THE DAY AT OR NEAR THEIR SESSION HIGHS ZOLL MEDICAL FELL 1 3/4 TO 28 1/4 AFTER SAYING THE FOOD AND DRUG ADMINISTRATION ISSUED A WARNING LETTER CRITICIZING THE COMPANY'S MANUFACTURING OPERATIONS THE FDA'S CONCERNS WERE THE SUBJECT OF A HEARD ON THE STREET COLUMN IN THIS NEWSPAPER DEC 6 ENHANCED IMAGING SURGED 2 1/4 OR 53 TO 6 1/2 AFTER PRUDENTIAL SECURITIES RAISED ITS RATING TO BUY FROM HOLD PRUDENTIAL ALSO RAISED ITS 1994 EARNINGS ESTIMATE TO 60 CENTS A SHARE FROM 30 CENTS PRIOR TO RESTRUCTURING CHARGES WHICH COMPARES WITH 1992 EARNINGS OF 46 CENTS AND EXPECTATIONS OF 1993 EARNINGS OF 11 CENTS BIOSYS WAS UP 1 1/4 OR 26 TO 6 AFTER THE WALL STREET JOURNAL REPORTED ANALYSTS EXPECT THE COMPANY WILL TURN PROFITABLE IN 1995 WELL AHEAD OF SOME OF ITS RIVALS IN THE AGRICULTURAL BIOTECHNOLOGY FIELD AFTER FALLING SHARPLY EARLIER IN THE WEEK MERRYGOROUND CONTINUED TO REBOUND FOLLOWING WEDNESDAY'S SHARP RISE WITH A GAIN OF 1/2 OR 22 TO 2 3/4 ALEX BROWN UPGRADED THE STOCK TO NEUTRAL FROM SOURCE OF FUNDS AND SAID A PRICE OF 5 IS POSSIBLE ASSUMING THE COMPANY CAN REACH AN AGREEMENT WITH ITS CREDITORS ICN PHARMACEUTICALS ROSE 1 OR 13 TO 8 5/8 AFTER THE COMPANY FORECAST PROFITS AT SEVERAL COMPANIES IN WHICH IT HAS SIGNIFICANT EQUITY POSITIONS MOLTEN METAL TECHNOLOGY WAS UP 2 1/4 OR 97 TO 25 1/2 ON NEWS THAT ALEX BROWN RAISED ITS RATING ON THE STOCK TO STRONG BUY FROM BUY VIDEO LOTTERY TECHNOLOGIES FELL 2 OR 11 TO 16 3/4 ON NEWS THAT IT WAS DENIED A LICENSE BY THE PROVINCE OF QUEBEC TELEDATA COMMUNICATIONS FELL 1 5/8 OR 82 TO 18 1/8 ON NEWS THAT LEHMAN BROTHERS CUT ITS RATING ON THE STOCK TO NEUTRAL FROM OUTPERFORM AND THAT OPPENHEIMER & CO LOWERED ITS RATING TO MARKET PERFORMER FROM BUY CHEMTRAK FELL 3/8 OR 79 TO 4 3/8 AFTER SAYING IT EXPECTS FOURTHQUARTER REVENUE OF 350000 COMPARED WITH 16 MILLION IN THE YEAREARLIER PERIOD THE COMPANY SAID DELAYS IN INTERNATIONAL PRODUCT LAUNCHES IN NEW TERRITORIES COMBINED WITH A SLOWDOWN IN ORDERS FROM CERTAIN CUSTOMERS CONTRIBUTED TO THE REVENUE DECLINE 9312270101 931227 TECHNOLOGY BY JOHN J KELLER DIGITAL CELLULAR TECHNOLOGY STILL IN ITS INFANCY IS EXPERIENCING SOME GROWING PAINS CUSTOMERS HOPING FOR CLEAR CONVERSATIONS AND ANTIEAVESDROPPING SECURITY ARE WONDERING WHY THEY HEAR WHAT SOUND LIKE BIRD CALLS INSTEAD THE INDUSTRY CALLS THIS UNWANTED DIN WARBLING IT COMES WHEN A DIGITAL PHONE MISCODES BACKGROUND NOISE IN A CAR OR ON A STREET CORNER DURING TRANSMISSION CONVENTIONAL ANALOG PHONES TRANSMIT THIS AS NORMAL NOISE BUT NEW DIGITAL CIRCUITRY CAN MISTAKENLY TRY TO CONVERT IT TO SPEECH TURNING A CALL INTO SOMETHING LIKE A GRACKLES' CONVENTION ANOTHER BUG IS ECHOES WHEN FAULTY SPEECH COMPRESSION SENDS DELAYED REFLECTIONS OF SPEAKERS' VOICES BACK TO THEM INDUSTRY CONSULTANT HERSCHEL SHOSTECK SURVEYED 400 DEALERS AND FOUND DOZENS OF CUSTOMERS ARE BRINGING THE PHONES BACK THINKING THERE'S SOMETHING WRONG WITH THEM CARRIERS SAY NOT TO WORRY STEADY IMPROVEMENTS SHOULD ELIMINATE THE CHIRPY STATIC AS DIGITAL USE EXPANDS WHILE ONLY 66000 OF THE 57 MILLION CELLULAR PHONES SOLD THIS YEAR WERE DIGITAL THAT WAS A TWENTYFOLD INCREASE FROM 1992 MCCAW CELLULAR COMMUNICATIONS MOTOROLA AND OTHERS ARE PERFECTING NEW ECHOCANCELLATION AND ERRORCORRECTION TECHNIQUES FOR QUIETER PHONE CALLS SOFTWARE FROM COHERENT COMMUNICATIONS SYSTEMS CANCELS ECHOES AND INJECTS ITS OWN SYNTHETIC BACKGROUND HUM TO STOP THE PHONE FROM CONVERTING NOISE INTO SPEECH THAT OF COURSE MIGHT SEEM TO UNDERCUT A KEY SELLING FEATURE OF DIGITAL SERVICE NAMELY ITS PROMISE OF QUIETER CALLS NONETHELESS THE SOFTWARE IS BEING USED IN THE NEW MCCAW NOT MACAW NETWORK THE NEW MATH IS 0 + 1 = 4 MORE OR LESS RESEARCHERS AT THE UNIVERSITY OF SOUTHERN CALIFORNIA HAVE STUMBLED ON A NEW MATHEMATICAL KEY FOR KEEPING DATA MESSAGES FROM GETTING GARBLED DURING TRANSMISSION CURRENTLY DATA FLOWS THROUGH PHONE LINES WITH HELP FROM ERRORCORRECTION CODES THE CODES WHICH ARE SENT IN BINARY FORM USING THE ONES AND ZEROES OF COMPUTER LANGUAGE LET A PHONE OR COMPUTER KNOW A MESSAGE IS ON THE WAY AND ENSURE THAT THE MESSAGE GETS THERE INTACT THE RESEARCHERS P VIJAY KUMAR AND A ROGER HAMMONS HAVE BEEN LOOKING AT WHETHER A FOURCHARACTER CODE RATHER THAN SIMPLY ONES AND ZEROES COULD DO THE JOB BETTER THEY CAME UP WITH ONE SUCH QUATERNARY CODE AND WERE SURPRISED TO FIND THAT WHEN THEY CONVERTED IT INTO ITS BINARY EQUIVALENT IT WAS A WELLKNOWN HIGHLY EFFICIENT ERROR CODE THE BINARY FORM WAS THOUGHT TO BE TOO COMPLEX TO BE USED EASILY IN COMMUNICATIONS BUT IN QUATERNARY FORM IT MAY PROVE TO BE MORE USEFUL SIMILAR WORK AT AT&T BELL LABORATORIES AMERICAN TELEPHONE & TELEGRAPH'S R&D ARM AND FRANCE'S CENTER FOR NATURAL SCIENCE RESEARCH CONFIRMED THEIR FINDINGS AND WAS REPORTED RECENTLY IN SCIENCE AFTER UNRAVELING THE THEORETICAL BASIS FOR THE LINK THE RESEARCHERS NOW PLAN TO DEVISE MORE POWERFUL ERRORCORRECTING CODES IN SIMILAR QUATERNARY FORM AIMING TO HELP TURN TOMORROW'S POCKET PHONES INTO MULTIMEDIA COMMUNICATORS THESE LASERS NEVER NEED GLASSES AT&T BELL LABORATORIES SCIENTISTS HAVE DESIGNED TINY COMMUNICATIONS LASERS THAT UNLIKE CONVENTIONAL LASERS DON'T NEED LENSES TO FOCUS THE LIGHT THEY TRANSMIT BELL LABS SEES TREMENDOUS POTENTIAL FOR THE NEW EXPERIMENTAL ZONE LASERS NILOY DUTTA CHIEF OF BELL LABS' OPTOELECTRONICDEVICE AREA SAYS THE NEW LASERS COULD BE DIRECTLY CONNECTED TO OPTICAL FIBER TO TRANSMIT DATA WITHOUT USING CUMBERSOME COSTLY FOCUSING LENSES EVENTUALLY ZONE LASERS ON A MICROSCOPIC SCALE COULD BE USED ON A SINGLE ELECTRONIC CHIP TO TRANSMIT DATA VIA LIGHT INSIDE THE CHIP INSTEAD OF ALONG A PATH IN SILICON THE DEVICES ALSO COULD SERVE AS AN INEXPENSIVE MECHANISM FOR CONNECTING CHIPS VIA LIGHT BEAMS INSTEAD OF COMPARATIVELY BULKY ELECTRICAL LINES INVENTED BY RESEARCHER DARYOOSH VAKHSHOORI THE NEW LASER IS CONTAINED IN A STRUCTURE OF ULTRATHIN LAYERS OF INDIUMGALLIUMARSENIDE GALLIUM ARSENIDE AND ALUMINUMGALLIUMARSENIDE ONLY A FEW ATOMS DEEP THE LAYERS ARE BONDED BY A TECHNIQUE CALLED MOLECULARBEAM EPITAXY THE LAYERS LET THE LASER DISPENSE WITH LENSES BECAUSE THE LIGHT CONVERGES AS AN ALREADYFOCUSED BEAM WHEN IT LEAVES THE DEVICE YOU TOOK THAT EXIT OFF THE INTERSTATE HOURS AGO IN SEARCH OF A DOWNTOWN JAZZ CLUB BUT NOW YOU SEE SIGNS FOR WOODSTOCK HOPELESSLY LOST MAYBE AUDIONAV AN ELECTRONIC TALKING SCOUT CAN PUT YOU BACK ON TRACK THE FIRST VOICEACTIVATED AUDIONAVIGATION SYSTEM IS SET TO DEBUT AT THE WINTER CONSUMER ELECTRONICS SHOW IN LAS VEGAS IN JANUARY IT USES A DASHBOARD COMPACTDISK PLAYER FROM FUJITSU AND SPECIAL SOFTWARE VOICEPROCESSING ELECTRONICS AND HARDWARE FROM AMERIGON OF BURBANK CALIF YOU TELL THE SYSTEM WHERE YOU ARE SAY FIFTH AVENUE AND THAT YOU WANT TO BE AT THE ZOO SAYS RAY WINDSOR NATIONAL SALES MANAGER AT FUJITSU'S ECLIPSE/FUJITSU UNIT THE MACHINE SPITS BACK DIRECTIONS BY MATCHING THE REQUEST TO THE CD'S MAP HE SAYS COMPUTER USERS HAVE BEEN ABLE TO USE PORTABLE MACHINES AND MAP SOFTWARE TO FIND THEIR WAY FOR A FEW YEARS NOW USERS OF AUDIONAV HOWEVER MAY FIND IT A PAIN TO DEAL WITH THE REQUIREMENT THAT THEY LABORIOUSLY SPELL OUT THEIR REQUESTS FOR DIRECTIONS PARTICULARLY IF THEY ARE ANXIOUS TO BOLT FROM A CREEPY NEIGHBORHOOD AUDIONAV ALSO ISN'T CHEAP IN ADDITION TO 499 FOR THE HARDWARE CUSTOMERS MUST PURCHASE A 29 CD FOR EACH METROPOLITAN AREA THEY PLAN TO EXPLORE BUDGETMINDED DRIVERS MAY FIND IT MORE SOOTHING TO POP AN 1195 SINATRA CD INTO THEIR CAR'S PLAYER WHILE THEY CONSULT A DETAILED GASSTATION MAP 9312270099 931227 BUSINESS BRIEFS REPUBLIC GOLDFIELDS INC TORONTO SAID IT SIGNED TWO JOINTVENTURE CONTRACTS WITH GEOMINERA SA OF CUBA THE JOINT VENTURE WILL EXPLORE FOR GOLD AT THE GASPAR CONCESSION IN CENTRAL CUBA AND FOR GOLD AND COPPER AT THE PURIAL CONCESSION IN EASTERN CUBA FALCON PRODUCTS INC A ST LOUIS OFFICEPRODUCTS CONCERN WILL PURCHASE CERTAIN ASSETS AND DEBT OF SEATINGPRODUCT MAKER CHARLOTTE CO BELDING MICH FOR 325 MILLION THE TRANSACTION IS TO CLOSE JAN 31 MISSION WEST PROPERTIES SAN DIEGO SAID IT HIRED HACKING & CO A LOS ANGELESBASED INVESTMENT BANKING FIRM AND HACKING'S AFFILIATE SLUSSER ASSOCIATES INC OF NEW YORK IN AN EFFORT TO PURSUE FINANCING AND ACQUISITIONS TO EXPAND ITS BUSINESS THE REALESTATE DEVELOPMENT CONCERN ALSO SUSPENDED ITS QUARTERLY DIVIDEND TO CONSERVE CASH MEREDITH CORP DES MOINES IOWA RECENTLY SOLD NBC TELEVISION AFFILIATE KSEE IN FRESNO CALIF AND CBS AFFILIATE WTVH IN SYRACUSE NY TO GRANITE BROADCASTING CORP FOR 30 MILLION IN CASH AND 2 MILLION IN GRANITE PREFERRED STOCK IN ADDITION TO A FEDERAL MINORITY INCOMETAX BENEFIT CERTIFICATE THE SALE BOOSTS GRANITE'S TV HOLDINGS TO SIX STATIONS 9312270098 931227 THREE JAPANESE FIRMS TO BUILD TWO PLANTS FOR STEEL IN MALAYSIA SPECIAL TO THE WALL STREET JOURNAL TOKYO A THREEMEMBER CONSORTIUM OF JAPANESE COMPANIES HAS AGREED TO BUILD TWO STEEL PLANTS FOR MALAYSIA'S STATERUN PERWAJA STEEL PTY SPOKESMEN FOR THE JAPANESE COMPANIES SAID ITOCHU CORP NISSHO IWAI CORP AND TOMEN CORP HAVE AGREED TO BUILD THE TWO FACILITIES FOR A TOTAL OF ABOUT 76 BILLION YEN 6884 MILLION A SPOKESMAN FOR NISSHO IWAI SAID THE COMPANIES WILL TEAM WITH JAPANESE STEELMAKER NKK CORP FOR THE CONSTRUCTION OF ONE FACILITY AND WITH HEAVY0MACHINERY MAKER KAWASAKI HEAVY INDUSTRIES LTD FOR THE OTHER ONE OF THE FACTORIES TO COST ABOUT 40 BILLION YEN WILL PRODUCE STEEL SHEETS HOT ROLL COILS AND OTHER FLAT STEEL PRODUCTS FOR SALE IN MALAYSIA NKK WILL TEAM UP WITH THE THREE COMPANIES FOR CONSTRUCTION OF THE FACILITY AND WILL SERVE AS A TECHNICAL ADVISER TO PERWAJA STEEL AFTER THE PLANT BEGINS OPERATION CONSTRUCTION COULD BEGIN AS SOON AS JANUARY A SPOKESMAN FOR NKK SAID THE PLANT IS EXPECTED TO BE COMPLETED BY MID1997 AT THAT POINT THE FACTORY'S ANNUAL PRODUCTION CAPACITY IS ESTIMATED AT AROUND 15 MILLION TONS OF FLAT STEEL PRODUCTS THE OTHER FACTORY WILL PRODUCE STEEL BARS MOSTLY SLATED FOR USE IN MALAYSIA KAWASAKI HEAVY INDUSTRIES WILL JOIN THE THREE COMPANIES AS A PARTNER IN THE CONSTRUCTION OF THE STEEL BAR FACILITY 9312270097 931227 BARBARA HOLUM IS NAMED CFTC ACTING CHAIRWOMAN WASHINGTON THE WHITE HOUSE NAMED BARBARA P HOLUM ACTING CHAIRWOMAN OF THE COMMODITY FUTURES TRADING COMMISSION MS HOLUM SUCCEEDS REPUBLICAN APPOINTEE SHEILA BAIR WHO HAD BEEN ACTING CHAIRWOMAN SINCE AUGUST THE WHITE HOUSE HASN'T GIVEN ANY INDICATION OF WHEN IT WILL APPOINT A PERMANENT HEAD FOR THE AGENCY THE LAST CHAIRWOMAN WENDY GRAMM LEFT IN JANUARY AS DID COMMISSIONER FOWLER WEST LEAVING THE AGENCY WITH ONLY THREE COMMISSIONERS FOR MUCH OF 1993 COMMISSIONER WILLIAM ALBRECHT LEFT IN AUGUST THE WHITE HOUSE NOMINATED MS HOLUM AND JOHN TULL JR AS COMMISSIONERS IN EARLY NOVEMBER THEY ATTENDED THEIR FIRST CFTC MEETING LAST WEEK MS HOLUM 52 YEARS OLD IS BELIEVED TO HAVE BEEN TAPPED FOR THE POST OF ACTING CHAIRWOMAN BECAUSE OF HER PREVIOUS EXPERIENCE WITH THE AGENCY SHE WAS DIRECTOR OF THE CFTC'S OFFICE OF CONGRESSIONAL LIAISON FROM 1977 TO 1979 FOR THE PAST 12 YEARS SHE HAS SERVED AS PRESIDENT OF THE NATIONAL AGRICULTURAL LAND CENTER A NONPROFIT GROUP THAT ADMINISTERS AGRICULTURALCONSERVATION PROGRAMS FOR THE NATIONAL ENDOWMENT FOR SOIL AND WATER CONSERVATION SHE ALSO HAS BEEN ACTIVE IN DEMOCRATIC POLITICS WORKING ON THE PRESIDENTIAL CAMPAIGNS OF EDWARD KENNEDY JIMMY CARTER AND GEORGE MCGOVERN 9312270096 931227 MARKETING & MEDIA WARNERLAMBERT CO RJR NABISCO AGREE TO ALTER GUM LABELS NEW YORK WARNERLAMBERT CO AND RJR NABISCO HOLDINGS CORP'S NABISCO INC AGREED TO CHANGE THE WAY THEY LABEL SUGARLESS CHEWING GUM SWEETENED WITH SACCHARIN THE COMPANIES AGREED TO PAY 40000 EACH TO THE NEW YORK STATE ATTORNEY GENERAL'S OFFICE FOR THE COSTS OF THE INVESTIGATION ATTORNEY GENERAL ROBERT ABRAMS ASSERTED THE COMPANIES VIOLATED FEDERAL FOOD LABELING LAWS INVOLVING WARNINGS ON THE LABELS OF FOODS THAT CONTAIN SACCHARIN THE REQUIREMENTS CALL FOR THE CONSPICUOUS DISPLAY OF A STATEMENT WARNING USERS OF THE POSSIBLE ILL EFFECTS OF SACCHARIN THE GUM PACKAGES DIDN'T CONSPICUOUSLY DISPLAY THE WARNING MR ABRAMS ASSERTED SACCHARIN HAS BEEN DETERMINED TO CAUSE CANCER IN LABORATORY ANIMALS THE COMPANIES SIGNED THE AGREEMENTS TO CHANGE THE LABELS WITHOUT ADMITTING TO VIOLATIONS OF LAW NABISCO INC PARSIPPANY NJ PRODUCES CAREFREE AND BUBBLE YUM SUGARLESS CHEWING GUMS FLAVORED WITH SACCHARIN IN A STATEMENT THE COMPANY CALLED NEW YORK'S APPLICATIONS OF THE FEDERAL REGULATION INCORRECT IT ADDED THAT NEW YORK'S ACTION ILLUSTRATES THE DIFFICULTY OF AN ENVIRONMENT WHERE MANY OF THE 50 STATES CAN ADOPT A DIFFERENT INTERPRETATION OF A FEDERAL LABELING STATUTE AND HOLD A NATIONAL MANUFACTURER ACCOUNTABLE TO THAT INTERPRETATION WARNERLAMBERT MORRIS PLAINS NJ WHICH MAKES SACCHARINFLAVORED TRIDENT AND SUGARFREE DENTYNE GUM WAS UNAVAILABLE TO COMMENT 9312270095 931227 ECONOMY YEAREND DATA SHOW STRENGTH IN THE RECOVERY ORDERS FOR DURABLE GOODS ROSE 2 IN NOVEMBER CONSUMER OPTIMISM UP BY RACHEL ENGLEHART STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE YEAREND FLURRY OF STATISTICS SHOWS THE ECONOMY IS CONTINUING TO GAIN STRENGTH THERE ARE GREATER SIGNS OF LIFE ALL THROUGH THE ECONOMY AND THAT'S GIVING EVERYTHING A REAL BOOST SAID SANDRA SHABER AN ECONOMIST AT WEFA GROUP THE TREND HAS BEEN UP SAID JEFF THREDGOLD CHIEF ECONOMIST FOR KEYCORP AND THE STRENGTH IS PRETTY BROADLY BASED ANALYSTS EXPECT THE GOOD NEWS TO CONTINUE THE POINT IS IT WILL CONTINUE TO GROW SAID MAUREEN ALLYN CHIEF ECONOMIST FOR SCUDDER STEVENS & CLARK INC IT'S AN INVESTMENTLED RECOVERY WITH ALL SORTS OF GOOD THINGS FOR THE US TO COME THE LATEST ECONOMIC SOUNDINGS INCLUDE A COMMERCE DEPARTMENT REPORT THURSDAY THAT DURABLEGOODS ORDERS ROSE 2 IN NOVEMBER THAT WAS THE FOURTH CONSECUTIVE MONTHLY INCREASE STEADY INCREASES IN ORDERS FOR AUTOMOBILES AND AIRCRAFT UNDERSCORE THE ECONOMY'S MOMENTUM DRIVERS ARE OUT THERE BUYING THEIR CARS SAID MS ALLYN AND THAT VIRTUALLY ASSURES A REALLY STRONG FOURTH QUARTER ORDERS FOR ALMOST ALL MAJOR BIGTICKET FACTORY ITEMS WERE UP FOR THE NINTH CONSECUTIVE MONTH UNFILLED ORDERS WERE DOWN ELECTRICAL MACHINERY ORDERS WERE THE ONLY CATEGORY MARRING AN OTHERWISE SUNNY PICTURE BUT ECONOMISTS CAUTIONED THAT THE DECLINE IN THAT AREA DOESN'T MEAN MUCH SUCH ORDERS SHOWED HEALTHY INCREASES THE PREVIOUS TWO MONTHS SHIPMENTS FOR ALL MAJOR CATEGORIES OF DURABLE GOODS INCLUDING TRANSPORTATION GOODS NONELECTRICAL MACHINERY AND PRIMARY METALS ROSE IN NOVEMBER ADDING TO ECONOMISTS' UPBEAT MOOD ABOUT 1994 THE RECENT IMPROVEMENT IN THE MANUFACTURING SECTOR SHOULD EASILY CONTINUE TO THE FIRST QUARTER OF 1994 SAID STUART HOFFMAN SENIOR ECONOMIST AT PNC BANK CORP MEANWHILE CONSUMERS ARE MAKING MONEY FASTER THAN THEY ARE SPENDING IT THE COMMERCE DEPARTMENT SAID PERSONAL INCOME INCREASED 05 IN NOVEMBER FROM OCTOBER WHILE CONSUMER SPENDING WAS DOWN 03 FROM OCTOBER SUGGESTING THAT CONSUMERS ARE SAVING MORE ECONOMISTS HAVE BEEN ANTICIPATING SUCH AN INCREASE IN SAVINGS SPENDING HAS OUTPACED CONSUMER INCOME IN THE PAST AND THE PERSONAL SAVINGS RATE DIPPED SAID MR THREDGOLD HE SAID THAT PATTERN ISN'T SUSTAINABLE AND PREDICTED THAT SPENDING WILL SLOW IN THE FOURTH QUARTER LACY HUNT CHIEF ECONOMIST AT CARROLL MCENTEE & MCGINLEY IN NEW YORK AGREES WRITING IN THE FIRM'S NEWSLETTER HE SAID THERE HAVE BEEN SEVERAL PREVIOUS SURGES IN DEBTSUPPORTED CONSUMER SPENDING IN THIS RECOVERY AND IN EACH INSTANCE A PERIOD OF SEVERAL MONTHS OF CONSUMER FRUGALITY FOLLOWED ECONOMISTS AREN'T WORRIED ABOUT A SLOWDOWN IN CONSUMER SPENDING THOUGH IN FACT THEY SUGGEST THAT INCREASED SAVINGS COULD LAY THE GROUNDWORK FOR GREATER ECONOMIC STRENGTH LATER NEXT YEAR ALL IN ALL CONSUMERS ARE FEELING PRETTY GOOD ABOUT THE ECONOMY ACCORDING TO THE LATEST UNIVERSITY OF MICHIGAN CONSUMERSENTIMENT INDEX THE INDEX ROSE TO 882 IN DECEMBER FROM 812 IN NOVEMBER ACCORDING TO PEOPLE WHO HAVE SEEN IT THE INDEX IS RELEASED ONLY TO SUBSCRIBERS CONSUMER EXPECTATIONS FOR THE ECONOMY ROSE TO 788 IN DECEMBER AND THE READING ON CURRENT ECONOMIC CONDITIONS INCREASED TO 1029 FROM 982 IN NOVEMBER WHILE THE OVERALL ECONOMIC PICTURE LOOKS GOOD INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE EDGED UP TO 332000 FROM 328000 DURING THE WEEK ENDED DEC 18 THE LABOR DEPARTMENT SAID THE FOURWEEK ROLLING AVERAGE FOR CLAIMS WHICH ECONOMISTS OFTEN CITE AS A MORE MEANINGFUL FIGURE FELL TO 329750 FROM 331500 THE PREVIOUS WEEK ALL FIGURES HAVE BEEN SEASONALLY ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES ON NEW ORDERS FOR DURABLE GOODS SEASONALLY ADJUSTED IN BILLIONS HERE IS THE COMMERCE DEPARTMENT'S LATEST REPORT ON PERSONAL INCOME THE FIGURES ARE AT SEASONALLY ADJUSTED ANNUAL RATES IN TRILLIONS OF DOLLARS CONSUMER SPENDING ROSE AN INFLATIONADJUSTED 03 IN NOVEMBER AN ARTICLE MONDAY INCORRECTLY SAID SPENDING DECLINED 03 9312270094 931227 ADVERTISING MILITARY ADS' PROMISES ARE PUT TO THE TEST BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL THE US ARMED FORCES ARE STILL LOOKING FOR A FEW GOOD MEN AND WOMEN BUT ONLY FOR A FEW GOOD YEARS LONG GONE ARE THE RECRUITING ADS THAT PROMISED IT'S NOT JUST A JOB IT'S AN ADVENTURE WITH THE COLD WAR OVER RECRUITING ADS INVITE PROSPECTS TO VIEW A TOUR OF DUTY AS A ROUTE TO A CIVILIAN CAREER BUT THE JOB MARKET IS FLOODED WITH THOUSANDS OF FORMER MILITARY EMPLOYEES CIVILIANS ENLISTED TROOPS AND OFFICERS PUTTING THE PROMISES MADE IN MILITARY RECRUITING ADS TO THE TEST LANDING A REALWORLD JOB AFTER A MILITARY STINT ISN'T SO EASY SAY HEADHUNTERS AND TRAINERS WHO WORK WITH FORMER MILITARY PERSONNEL THAT COUPLED WITH REDUCED BUDGETS FOR ADVERTISING IS MAKING IT A MUCH HARDER SELL IN THE LATE 1980S COMPANIES IN THE DEFENSE PHARMACEUTICAL AND CONSUMERPRODUCTS INDUSTRIES SNAPPED UP JUNIOR OFFICERS AFTER ONE OR TWO TOURS THEY WERE SEEN AS TOPNOTCH CANDIDATES YOUNG YET DISCIPLINED AND EXPERIENCED IN MANAGING PEOPLE AND BUDGETS BUT THESE INDUSTRIES ARE CUTTING BACK JUST AS THE MILITARY IS AND SUPPLY OF SUCH CANDIDATES IS OUTPACING DEMAND SUDDENLY THE FEW AND THE PROUD ARE LOOKING FOR JOBS EN MASSE IF THEY HOPE FOR A SMOOTH TRANSITION TO A CIVILIAN CAREER RECRUITS MUST ACTIVELY PLAN FOR IT FROM THE FIRST DAY OF THEIR MILITARY STINT SAYS MARK TABERT PLACEMENT MANAGER AT THE BALTIMORE OFFICE OF FOXMORRIS PERSONNEL ASSOCIATES YOU HAVE TO QUESTION SOME OF THE ADS HE SAYS THEY MAKE IT SEEM LIKE A SHOOIN LIKE YOU'LL ROLL RIGHT OVER INTO THE CORPORATE WORLD RECRUITMENT ADS TARGETING MAINLY 17 TO 24YEAROLD MALES PLAINLY APPEAL TO YOUNG PROSPECTS' DESIRE TO SUCCEED SAYS CHARLES WINDSOR A VICE PRESIDENT AT YOUNG & RUBICAM THE ARMY'S AD AGENCY SINCE 1987 OF COURSE THEY'RE NOT UNAWARE OF WHAT IS GOING ON IN SOCIETY BUT OUR JOB IS TO PRESENT THE MILITARY AS AN OPTION THE ADS TRY TO PRESENT THE ADVANTAGES OF ARMY SERVICE INCLUDING MONEY FOR COLLEGE SKILL TRAINING AND RELEVANCE TO A CIVILIAN CAREER THE AGENCY SAYS BUT NOT TO BE UNDERESTIMATED IS THE ROMANTIC APPEAL OF THE ARMY EXPERIENCE WHICH PLAYS TO PROSPECTS' PATRIOTISM AND THIRST FOR ACTION AND ADVENTURE LET'S FACE IT THERE ARE STILL PEOPLE WHO WANT TO JUMP OUT OF HELICOPTERS MR WINDSOR NOTES SO WHAT'S ON YOUR RESUME ASKS ONE COMMERCIAL FOR THE US ARMY WHICH FOR 12 YEARS HAS BEEN CHALLENGING YOUNG PEOPLE TO BE ALL THAT YOU CAN BE AND IS THE LARGEST MILITARY ADVERTISER SCENES OF HIGH ADVENTURE TARGET THE FANTASIES OF THE MTV GENERATION BUT THE AD ALSO GIVES A NOTSOSUBTLE REMINDER THAT IT'S NOT A LIFETIME CAREER ARMY TRAINING DEVELOPS QUALITIES NINE OUT OF 10 EMPLOYERS LOOK FOR OTHER RECENT SPOTS ARE MORE BLATANT ONE INTERCUTS SHOTS OF HIGHTECH GADGETRY WITH SCENES OF A SOLDIER JUMPING FROM A HELICOPTER WHEN HE LANDS HE'S A SUPERVISOR ON A CONSTRUCTION SITE WEARING A SHIRT TIE AND HARD HAT ANOTHER AD DEPICTS THE TRANSFORMATION OF A SOLDIER IN CAMOUFLAGE UNIFORM INTO A BUSINESSMAN YOUNG PEOPLE APPARENTLY AREN'T BUYING THE ADS' MESSAGE THE DEFENSE DEPARTMENT'S ANNUAL YOUTH TRACKING STUDY NOTES THAT THE POSITIVE PROPENSITY TO ENLIST IS CONTINUING A TWOYEAR DECLINE IN 1990 ABOUT 14 OF THOSE SURVEYED SAID THEY WOULD CONSIDER ENLISTING IN A 1992 POLL THE FIGURE HAD SHRUNK TO 11 COL JOHN MYERS THE US ARMY DIRECTOR OF ADVERTISING SAYS THE ARMY IS BEHIND PLAN IN SIGNING UP 70000 RECRUITS IN THIS FISCAL YEAR ENDING SEPT 30 NOW THAT THE ARMY IS DOWNSIZING THE IMPLICATION IS THAT WE DON'T NEED AS MANY PEOPLE HE SAYS NO ONE IS SURPRISED THAT PERCEPTION IS OUT THERE BUT WE STILL HAVE A STIFF MISSION TO ACHIEVE CORPORATE RECRUITERS SAY THE MILITARY DOESN'T OFFER YOUNG PEOPLE THE CAREER SECURITY IT ONCE DID IT USED TO BE IF YOU KEPT YOUR NOSE CLEAN AND DID THE RIGHT NUMBER OF TOURS THERE WAS A REAL OPPORTUNITY SAYS A RECRUITER WHO HELPS FORMER OFFICERS FIND CIVILIAN JOBS BUT OFFICERS ARE BEING LAID OFF AFTER 15 YEARS OR SOONER YOU DEFINITELY HAVE TO GO OUT AND FIND ANOTHER POSITION HE SAYS BUT AFTER 12 OR 15 YEARS INDUSTRY SAYS YOU'RE NOT AS MOLDABLE HEADLINES ABOUT BASE CLOSINGS ONLY INCREASE THE NEED FOR RECRUITMENT ADVERTISING COL MYERS SAYS FOR THAT MATTER ANY CONTROVERSY OR NEWS OF MILITARY ACTION MAKES RECRUITING MORE DIFFICULT PARENTS OF SMART KIDS ARE LIKELY TO BE SMART TOO SAYS A FORMER SENIOR DEFENSE DEPARTMENT OFFICIAL WHO WORKED ON RECRUITING POLICY THEY ARE SAYING MAYBE THIS ISN'T SUCH A GOOD PLACE TO GO ANYMORE' BUT THE REALITY HE SAYS ISN'T THAT PEOPLE WHO WERE RECRUITED FOR CAREERS HAVE BEEN SUDDENLY THROWN OUT IT'S JUST THAT PEOPLE WHO HAVE DONE WELL AREN'T GETTING THE OPPORTUNITY TO STAY IN THAT THEY MIGHT HAVE EXPECTED THE ARMY BY FAR HAS THE BIGGEST ADVERTISING BUDGET AMONG THE ARMED FORCES WITH PROJECTED SPENDING IN 1994 OF 40 MILLION 44 LESS THAN THE 72 MILLION SPENT IN 1990 THE ARMED SERVICES HAVE BUDGETED 108 MILLION IN 1994 ABOUT 45 LESS THAN THE 199 MILLION SPENT ON RECRUITMENT ADS IN 1990 THE PROJECTED FIGURES ARE WOEFULLY INADEQUATE ACCORDING TO THE FORMER DEFENSE DEPARTMENT OFFICIAL HE WARNS THAT IT GUARANTEES THAT THE MILITARY IS GOING TO HAVE SLIM PICKINS IN A FEW YEARS HIS WARNING COMES AS THE GENERAL ACCOUNTING OFFICE CONGRESS' INVESTIGATIVE ARM IS EXAMINING THE PENTAGON'S RECRUITMENT OPERATIONS FOR POSSIBLE CUTBACKS ADS THAT BRING IN MORE RECRUITS THAN NEEDED WILL HELP MAINTAIN HIGH QUALITY IN AN ALLVOLUNTEER FORCE MILITARY ADVERTISERS INSIST WITHOUT AGGRESSIVE RECRUITING SAYS COL MYERS YOU'D HAVE A RATHER DYSFUNCTIONAL CORPS MADE UP OF AN AWFUL LOT OF SENIOR SERGEANTS AND NO PRIVATES AND CORPORALS THE NBC NETWORK IS GOING THE EXTRA MILE TO PROMOTE VIPER THE ONEHOUR ACTION SHOW WHOSE STAR IS A FUTURISTIC VERSION OF CHRYSLER'S DODGE VIPER SPORTS CAR NBC A UNIT OF GENERAL ELECTRIC AND ITS AFFILIATE STATIONS PLAN TO PROMOTE THE SERIES STARTING TODAY WITH LOCAL CONTESTS THAT ALSO INVOLVE RADIO STATIONS AND CHRYSLER DEALERSHIPS IN FEBRUARY NBC WILL SELECT TWO GRANDPRIZE WINNERS WHO GET EITHER A DODGE VIPER OR A TRIP TO THE VIPER SET AT PARAMOUNT COMMUNICATIONS' TELEVISION STUDIOS IN HOLLYWOOD NBC IS SET TO AIR THE FIRST EPISODE OF THE SHOW AS A TELEVISION MOVIE SUNDAY NIGHT IT CONTINUES AS A ONEHOUR SERIES STARTING THE FOLLOWING FRIDAY A CHRYSLER SPOKESMAN SAID CHRYSLER WON'T BE ADVERTISING THE VIPER OR ANY OTHER CHRYSLER VEHICLES DURING THE SHOW WE THINK THE SERIES HAS TO WORK AS ENTERTAINMENT HE SAID WE THINK THE PRODUCT PLACEMENT IS NATURAL NOT FORCED INTERPUBLIC GROUP'S TROUBLED LINTAS AGENCY SAID IT LOST ANOTHER CLIENT VAN HEUSEN THE MEN'S DRESSSHIRT MAKER WHICH HAD BEEN A CLIENT AT THE AGENCY SINCE 1988 BILLINGS COULDN'T BE DETERMINED THE AGENCY SAID IN A STATEMENT THAT THE DECISION TO SPLIT WAS MUTUAL A LINTAS SPOKESWOMAN SAID THE ACCOUNT WASN'T PROFITABLE EXECUTIVES AT VAN HEUSEN A UNIT OF PHILLIPSVAN HEUSEN DIDN'T RETURN PHONE CALLS VAN HEUSEN'S PLANS FOR HIRING A NEW AGENCY COULDN'T BE DETERMINED THE LOSS IS THE LATEST IN A STRING OF CLIENT DEFECTIONS FROM THE AGENCY WHICH WEATHERED THE LOSS OF THE BIG DIET COKE AND INTERNATIONAL BUSINESS MACHINES PERSONALCOMPUTER ACCOUNTS AS WELL AS MOLSON BEER DISTRIBUTED BY PHILIP MORRIS'S MILLER BREWING ACCOUNT CARL KARCHER ENTERPRISES INC TAPPED THE LOS ANGELES OFFICE OF GREY ADVERTISING FOR ITS ESTIMATED 25 MILLION CARL'S JR RESTAURANTCHAIN ACCOUNT IT WAS PREVIOUSLY HANDLED BY OMNICOM GROUP'S GOODBY BERLIN & SILVERSTEIN SAN FRANCISCO 9312270093 931227 PRESSURED LENDERS JAPAN'S BANKS DOGGED BY LOANS GONE BAD LOSE OUT ON NEW ONES GOVERNMENT STEALS BUSINESS BY GIVING CHEAP CREDIT TO STIMULATE ECONOMY FORECAST OF WRITEOFF FEVER' BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO UNTIL RECENTLY MASAHARU SATO LIVED THE FLASHY LIFE OF AN EXPATRIATE JAPANESE BANKER IN NEW YORK MANAGING MUCH OF BANK OF TOKYO'S 25 BILLION NORTH AMERICAN LOAN PORTFOLIO WHAT IS IT LIKE TO BE BACK IN THE TOKYO HEADQUARTERS WITH CLIENTS LIKE MATSUSHITA ELECTRIC AND HONDA MOTOR TERRIBLE HE SAYS OUR SECTION'S LAST NEW LOAN WAS TWO OR THREE YEARS AGO HE LAMENTS STARING AT THE FLOOR SUCH IS THE HARSH NEW REALITY IN JAPANESE COMMERCIAL BANKING THE BIGGEST INSTITUTIONS HAVE RECENTLY ANNOUNCED BILLIONS OF DOLLARS IN BADLOAN PROVISIONS TO BEGIN TO COPE WITH AN ESTIMATED 15 TRILLION YEN 138 BILLION IN UNCOLLECTIBLE DEBTS A TAB ABOUT EQUAL IN SIZE TO THE ECONOMY OF DENMARK SOME THINK IT MAY BE THE START OF A JAPANESE WRITEOFF FEVER AS SPECTACULAR AS THE HEMORRHAGE OF RED INK BY US BANKS OVER LATIN AMERICAN DEBT IN THE 1980S NASTY AS TODAY'S CONSEQUENCES OF PAST ILLADVISED LENDING ARE IN MANY RESPECTS THE FUTURE LOOKS EVEN TOUGHER THAT IS BECAUSE JAPAN'S GIANT BANKS WHICH INCLUDE THE WORLD'S SIX LARGEST ARE WATCHING HELPLESSLY AS SOME OF THEIR CLIENTS HEAD OUT THE DOOR FOR JAPANESE BLUE CHIPS SUCH AS HONDA IT IS CHEAPER TO RAISE FUNDS ON THE WORLD'S FINANCIAL MARKETS THAN TO BORROW FROM A JAPANESE BANK JAPANESE COMPANIES HAVE DOUBLED THE PACE OF SUCH ACTIVITY RAISING 213 BILLION JUST IN THE FISCAL FIRST HALF ENDED SEPT 30 MEANWHILE OTHER CUSTOMERS OMINOUSLY ARE TURNING TO THE JAPANESE GOVERNMENT WHICH IS MAKING UNPRECEDENTED FUNDS AVAILABLE AS PART OF AN INCREASING EFFORT TO STIMULATE THE ECONOMY MORE THAN HALF OF THE GOVERNMENT'S RECENT SIX TRILLIONYEN STIMULUS PACKAGE CONSISTED OF CHEAP LOANS FOR HOUSING AND SMALL BUSINESS THERE'S ALMOST BEEN A NATIONALIZATION OF THE FINANCIAL SYSTEM FRETS MIKIO WAKATSUKI A FORMER DIRECTOR OF THE BANK OF JAPAN WHILE THE BANKS LANGUISH THE GOVERNMENT ALSO IS SNARING THEIR DEPOSITORS AT AN ALARMING RATE DEPOSITS AT JAPAN'S STATERUN POSTAL SAVINGS SYSTEM NOW STAND AT 165 TRILLION AND ARE GROWING ABOUT 7 A YEAR THE REASON THE GOVERNMENT PAYS MORE IN INTEREST THE JAPANESE GOVERNMENT'S TAKEOVER OF THE BANKING SYSTEM FOR THAT IS WHAT IT AMOUNTS TO UNDERSCORES THE PARLOUS STATE OF THE ECONOMY NOW IN ITS THIRD YEAR OF DECLINE BUT THE GOVERNMENT'S RISING PROFILE AS IT SEEKS TO REVIVE THE ECONOMY IS FRAUGHT WITH DANGER THE GOVERNMENT SAYS ITS PROMINENT ROLE IS TEMPORARY YET IT HAS NO CLEAR EXIT PLAN AND OUTSIDE THE GOVERNMENT FEW HAVE A GRASP OF THE SCALE OF WHAT IS GOING ON THERE'S NO DISCLOSURE ABOUT THE COSTS OF GOVERNMENT LENDING NONE SAYS A WORRIED ECONOMIST AT A LEADING BANK THERE ARE SOME SCARY HINTS HOWEVER LENDING BY GOVERNMENT FINANCIAL INSTITUTIONS TOTALED TO 114 TRILLION YEN 105 BILLION IN THE 12 MONTHS ENDED LAST AUGUST 11 HIGHER THAN IN THE PRECEDING 12MONTH PERIOD BANK LENDING WAS UP JUST 13 IN THAT PERIOD AND HAS SLOWED SINCE IN NOVEMBER IT GREW BY JUST A 05 ANNUAL RATE A POSTWAR LOW BANKERS WHO COUNT ON LENDING FOR 85 OF THEIR BUSINESS CALL IT FISCALLY IRRESPONSIBLE FOR THE GOVERNMENT TO PAY MORE FOR DEPOSITS AND CHARGE LESS FOR LOANS THERE IS A HUGE COST TO THIS SUBSIDY THEY SAY AND EVENTUALLY IT WILL HIT JAPAN'S TAXPAYERS THEY AREN'T JUST TAKING OUR BUSINESS AWAY THEY'RE HURTING THE FINANCIAL SYSTEM SAYS MASAMICHI YAMADA MANAGING DIRECTOR AT MITSUBISHI BANK SHORTTERM IT SEEMS LIKE THE GOVERNMENT IS HELPING PEOPLE BUT IN THE LONG RUN IT ISN'T HELPING THE NATIONAL ECONOMY GOVERNMENT OFFICIALS COUNTER THAT THEY ARE TRYING TO HELP THE ECONOMY BY LENDING FREELY AT A TIME WHEN PANICKY PRIVATE BANKS ARE LENDING TOO CAUTIOUSLY THINGS ARE ALREADY TENSE IN OCTOBER JAPANESE BANKS WERE HIT BY THE BIGGEST FAILURE IN POSTWAR HISTORY WHEN CLOSELY HELD CONTRACTOR MURAMOTO CONSTRUCTION WENT BUST WITH 546 BILLION IN DEBT SOME FEAR MORE BANKRUPTCIES MAY LIE AHEAD AND THE BANKS ARE WORRIED THAT WITHOUT A SHARP PICKUP IN BUSINESS THEY WON'T BE ABLE TO CARRY TROUBLED CLIENTS WITH SHAKIER BORROWERS AND FEWER NEW DEPOSITS THE BANKS MAY BE FORCED TO LEND EVEN LESS THAT RAISES THE SPECTER THAT THEY MIGHT NEED TO SHED ASSETS INCLUDING SOME OF THEIR 315 BILLION IN US ASSETS JUST TO MEET CURRENT OBLIGATIONS SUCH A SCENARIO COULD WEAKEN ASSET PRICES ON BOTH SIDES OF THE PACIFIC AND THE LONGER JAPAN'S ECONOMY IS HURTING THE WORSE IT IS FOR US EXPORTERS AMONG JAPAN'S 151 PRIVATESECTOR BANKS THE PAIN IS FELT MOST KEENLY AT JAPAN'S 11 MAJOR COMMERCIAL OR CITY BANKS A GROUP WITH 385 TRILLION IN ASSETS THAT WAS LONG AT THE CENTER OF THE JAPANESE ECONOMY THE CITY BANKS FINANCED JAPAN'S POSTWAR EXPORT MACHINE AND SWELLED WITH THE JAPANESE ECONOMY IN THE 1980S CONSIDER SUMITOMO BANK WHICH ORIGINATED IN THE COPPER MINING DAYS OF 16THCENTURY JAPAN SUMITOMO GREW ENORMOUSLY AFTER WORLD WAR II AS ITS BANKERS CHASED JAPANESE EXPORTERS AROUND THE GLOBE PROVIDING THE FINANCE TO BUILD JAPANESE MANUFACTURING PLANTS FROM EUROPE TO ASIA BY 1986 SUMITOMO HAD ENOUGH MONEY TO SPEND 500 MILLION ON A 125 NONVOTING STAKE IN GOLDMAN SACHS & CO BUT SUMITOMO'S REACH EXCEEDED ITS GRASP THE BANK NOW IS WRITING OFF ITS ESTIMATED ONE TRILLION YEN 91 BILLION IN DEBTS AS FAST AS IT CAN INCLUDING 194 BILLION EARLIER THIS YEAR CONNECTED WITH FAILED REALESTATE SPECULATOR ITOMAN & CO STILL KENSUKE UCHIDA SUMITOMO'S DIRECTOR OF CORPORATE PLANNING IS MORE WORRIED ABOUT THE BORROWER EXODUS THAN THE BAD CREDITS LOANS ARE BEING TAKEN OVER BY DIRECT FINANCING HE SAYS PUFFING ON A CIGARETTE FOR JAPANESE BANKS LOANS ARE LIKE RICE IN OTHER WORDS BANKS' BREAD AND BUTTER SOME BANKS BELIEVE THEY CAN ATTRACT ENOUGH SMALLBUSINESS CUSTOMERS TO OFFSET THE LOSS OF BIGTICKET BUSINESS BUT THEY WOULD BE WRONG TO BE TOO SANGUINE EVEN SOME SMALL COMPANIES ARE DEFECTING TINY OLYMPIC SPORTS CO A VENDOR OF TENNIS RACKETS AND HEALTHCLUB MEMBERSHIPS THAT HAS BEEN BORROWING FROM BANKS FOR 45 YEARS RECENTLY RAISED FIVE BILLION YEN 45 MILLION DIRECTLY IN EUROPEAN FINANCIAL MARKETS OLYMPIC SAVED ABOUT 925000 IN INTEREST CHARGES BY SHUNNING TRADITIONAL LENDER TOKAI BANK SAYS YOSHIKAZU NAKAYAMA A DIRECTOR WHO ONCE WAS A BANK LOAN OFFICER BANKERS STILL BELIEVE COMPANIES HAVE TO COME TO A BANK BOW AND ASK FOR LOANS HE SAYS BANKERS SHOULD STUDY MORE THE PERSON WHO WOOED OLYMPIC AWAY FROM THE BANKS WAS KATSUHIRO BABA A FASTTALKING 29YEAROLD INVESTMENT BANKER AT NOMURA SECURITIES CO HE IS KEEN FOR MORE DEALS AND NOT AFRAID OF THE VENERABLE BANKS LOSERS BORROW FROM BANKS HE CROWS COMPANIES WITH GOOD BUSINESS PERFORMANCE ARE GOING TO THE CAPITAL MARKETS INDEED WHEN IT COMES TO THE CHALLENGE OF THE MARKETS THE BANKS OFTEN SEEM TO BE THEIR WORST ENEMIES LONG CODDLED BY FAVORABLE REGULATIONS AND HIDEBOUND CORPORATE TRADITIONS THEY ARE FINDING IT HARD TO ADAPT TO A FASTERPACED WORLD THERE WAS MUCH TALK OF EFFICIENCY AND SYNERGY FOR INSTANCE WHEN MITSUI BANK AND TAIYO KOBE BANK MERGED INTO SAKURA BANK THREE YEARS AGO TODAY SAKURA STILL HAS THREE PERSONNEL DEPARTMENTS BOTH OF THE PREMERGER UNITS PLUS A NEW ONE FOR THE COMBINED BANK BUT WE EXPECT IT WILL BE A SINGLE DIVISION ONE DAY A SPOKESMAN SAYS KENJI YOSHIZAWA DEPUTY PRESIDENT OF BANK OF TOKYO DESCRIBES THE BANKS' CHALLENGES AS REALLY UNPRECEDENTED RIGHT NOW THE BIGGEST THREAT SEEMS TO BE THE GOVERNMENT WHY SHOULD THE STATE STEAL BUSINESS FROM PRIVATE BANKS IT APPEARS TO BE A STANDARD KEYNESIAN ATTEMPT TO MOVE THE STUCK ECONOMY BY PUMPING MONEY INTO THE SYSTEM IN ESSENCE THE BANK OF JAPAN BELIEVES THAT THE BANKS' BADLOAN MESS HAS MADE THEM GUNSHY ABOUT LENDING DESPITE THE CENTRAL BANK'S CUTTING ITS KEY RATE TO AN ALLTIME LOW OF 175 IF BANKS WERE VERY EAGER TO TAKE RISKS AND LEND AS THEY WERE IN PREVIOUS EASYMONEY PERIODS THINGS MIGHT BE DIFFERENT SAYS AKIRA NAGASHIMA EXECUTIVE DIRECTOR AT THE BANK OF JAPAN THIS REASONING IS REJECTED BY MINORU EDA MANAGING DIRECTOR AT SANWA BANK WE AREN'T STUPID OF COURSE WE'D LEND HE SAYS THE GOVERNMENT IS TRYING TO CHEER UP THE ECONOMY BY SUBSIDIZING LOANS BUT THEY'RE PUSHING THE PRIVATE SECTOR OUT OF THE MARKET HOPES THAT BANKS WILL ELBOW OUT THE GOVERNMENT ARE BASED ON THIS REBOUND SCENARIO THE CITY BANKS CLEAR UP THEIR BAD DEBTS MORE QUICKLY THAN EXPECTED AND RECAPTURE FORMER CLIENTS NEXT YEAR WHEN REGULATORS LET THEM OPEN THEIR OWN SECURITIES COMPANIES THE BIG LOANLOSS RESERVES RECENTLY SET ASIDE BY THE BANKS ARE A SIGNIFICANT STEP IN THAT DIRECTION THERE ARE SIGNS THAT REGULATORS WANT THE BANKS TO SPEED UP THEIR BADLOAN CLEANUP BANK OF JAPAN GOVERNOR YASUSHI MIENO RECENTLY URGED JAPANESE BANKS TO STUDY MEASURES THAT US BANKS TOOK TO CLEAR UP THEIR BADLOAN MESS SUCH AS LOAN SECURITIZATION AND ISSUANCE OF PREFERRED SHARES DAVID ATKINSON A FINANCIAL ANALYST AT GOLDMAN SACHS PREDICTS A WRITEOFF FEVER AMONG BANKS THAT WILL PUT THE CITY BANKS WELL ON THE ROAD TO RECOVERY SECURITIES AFFILIATES WILL CINCH THE RECOVERY HE SAYS COMPARED TO THE REST OF THE JAPANESE ECONOMY MR ATKINSON BELIEVES THE BANKS ARE IN FANTASTIC SHAPE IN THREE YEARS THEY'LL MAKE A RETURN ON EQUITY OF MORE THAN 10 POSSIBLY BUT NOT EVERYBODY THINKS SO FOR ONE THING JAPAN'S ECONOMIC DOWNTURN ENTAILING BANKRUPTCIES AND A STOCKMARKET PLUNGE RAISES THE POSSIBILITY OF NEW LOAN DEFAULTS SUMITOMO BANK'S MR UCHIDA ALSO SEES DAMAGING OVERCOMPETITION WHEN THE BANKS BECOME SECURITIES BROKERS WE PROBABLY WON'T MAKE ANY MONEY AT THIS IN THE EARLY DAYS HE SAYS HE THINKS THE PRESSURE WON'T LET UP FOR A LONG TIME BANKS WITH ENOUGH POWER WILL SURVIVE HE SAYS FROM HIS TOKYO OFFICE HE FACES AN EMPTY BUILDING A SYMBOL OF THE SPECULATIVE FRENZY THAT GRIPPED JAPAN JUST A FEW YEARS AGO OTHERS HE SAYS WILL FAIL