HULL QUEBEC ONTARIO AND QUEBEC AGREED TO REMOVE A VARIETY OF TRADE BARRIERS ENDING A RECENT TRADE WAR BETWEEN CANADA'S TWO LARGEST PROVINCES CABINET MINISTERS FROM BOTH PROVINCES SIGNED AN AGREEMENT TO OPEN THEIR MARKETS TO CONTRACTORS AND CONSTRUCTION WORKERS FROM ALL OTHER PROVINCES THEY ALSO AGREED TO OPEN THEIR MARKETS FOR MUNICIPAL BUSES BY THE BEGINNING OF 1998 QUEBEC HAS LONG BEEN CRITICIZED FOR DISCRIMINATING AGAINST OUTSIDE CONTRACTORS AND CONSTRUCTION WORKERS IN ITS PUBLIC WORKS PROGRAMS ONTARIO RETALIATED THIS FALL BY BANNING QUEBEC COMPANIES FROM BIDDING FOR GOVERNMENT CONTRACTS AND BY INTRODUCING LEGISLATION THAT WOULD MIRROR QUEBEC'S RESTRICTIONS ON ONTARIO CONSTRUCTION WORKERS THE TWO GOVERNMENTS AGREED TO DROP THOSE MEASURES AND TO BEGIN TALKS ON REDUCING OTHER BARRIERS SUCH AS POLICIES THAT FAVOR LOCAL SUPPLIERS IN GOVERNMENT CONTRACTS FOR FURNITURE AND ADVERTISING SERVICES 9312270091 931227 HELL RECONSIDERED PERDITION OF TRADITION IS ALL THE RAGE AGAIN COMEUPPANCE IN SEA OF FLAME APPEALS TO SOME AS JUST OTHERS ARE JUST FIRED UP BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL EVER WONDER WHAT HAPPENED TO HELL HERE'S AN UPDATE HELL WENT INTO ECLIPSE IN THE LATE '60S DURING THE IS GOD DEAD PERIOD NOW IT IS POPPING UP AGAIN WE'RE NOT TALKING ABOUT BOSNIA/SOMALIA HELL OR EVEN ABOUT FLYING OUT OF KENNEDY AIRPORT AT CHRISTMASTIME HELL THE HONESTTOGOODNESS HELL THE ABANDON HOPE ALL YE WHO ENTER HERE ONE IS RESURFACING IN CAFE CONVERSATIONS PLAYS HOLLYWOOD MOVIES BOOKS AND COLLEGE CLASSROOMS SOME PEOPLE THINK IT'S HIGH TIME I'VE NEVER HAD MUCH FAITH DECLARES BRITISH NOVELIST DEBORAH MOGGACH BUT MS MOGGACH CONFESSES THAT EVEN SHE FINDS IT CONSOLING TO THINK THERE MIGHT BE DIVINE RETRIBUTION FOR REALLY EVIL ACTS THE KIND SHE SAYS YOU CAN'T EXPLAIN BY DEPRIVED CHILDHOOD UNEMPLOYMENT AND THE OTHER USUAL EXCUSES STANDING BEFORE HIERONYMUS BOSCH'S PAINTING LAST JUDGMENT IN A BRUGGE BELGIUM MUSEUM MS MOGGACH CONTEMPLATES HOW GOOD IT WOULD BE IF MURDERERS RAPISTS AND CORRUPT POLITICIANS GOT THEIR COMEUPPANCE IN A SEA OF FLAMES HEAR THE YELLS SMELL THE FLESH SHE SAYS HOW SATISFYING HELL IS A BURNING QUESTION ON SOME COLLEGE CAMPUSES RUTGERS UNIVERSITY IN NEW BRUNSWICK NJ HAD TO LIMIT ENROLLMENT TO 100 STUDENTS IN A COURSE CALLED DEATH AND THE AFTERLIFE AFTER 400 SIGNED UP ONE SEMESTER WHEN THEOLOGIAN HERMAN TULL OFFERED A SIMILAR COURSE FOR 90 STUDENTS AT PRINCETON LAST YEAR THE CLASS IMMEDIATELY FILLED UP PROF TULL SAYS THE COURSE COVERED THE WAYS VARIOUS CULTURES AND RELIGIONS VIEW HEAVEN AND HELL HIS STUDENTS DIDN'T NECESSARILY ARRIVE WITH A BELIEF IN EITHER HE SAYS BUT SEEMED TO LONG FOR A CLEARER VISION OF WHAT BOTH MIGHT HOLD IN STORE JUST IN CASE AT DUBLIN'S TRINITY COLLEGE A WEEKLONG DRAMASCHOOL PRODUCTION OF SEVEN DOORS A CONTEMPORARY GERMAN PLAY BY BOTHO STRAUSS ABOUT CHARACTERS ADRIFT IN A PERSONAL HELL SOLD OUT EVERY PERFORMANCE LAST SEASON CONOR NOLAN A STUDENT WHO ACTED IN THE PLAY BELIEVES ITS THEME RANG TRUE FOR IRISH YOUTH HELL IS ALL AROUND US ALL THE TIME HELL ON EARTH IN OTHER WORDS JUST A FEW YEARS AGO SPEAKING OF PERDITION SEEMED QUITE OUT OF FAVOR A 1982 GALLUP POLL FOUND 71 OF AMERICANS BELIEVED IN HEAVEN BUT ONLY 53 SAID THEY BELIEVED IN HELL JUST SLIGHTLY MORE THAN THE NUMBER WHO SAID THEY THINK THERE IS INTELLIGENT LIFE ON OTHER PLANETS HELL WENT INTO STEEP DECLINE IN THE 1960S ALONG WITH ORGANIZED RELIGION SAYS TED HONDERICK WHO TEACHES PHILOSOPHY AT THE UNIVERSITY OF LONDON EVEN DEVOUT CHRISTIANS HE SAYS WERE FINDING IT HARD TO BELIEVE THAT GOD MIGHT CONTAIN AN ALLOTMENT OF VICIOUSNESS AS FOR MORAL GUIDANCE PEOPLE SEEMED MORE COMFORTABLE GETTING IT FROM A THERAPIST THAN FROM THEIR CHURCH ADDS TRINITY COLLEGE BIBLICAL SCHOLAR SEAN FREYN THE RESULT ACCORDING TO CHICAGO THEOLOGIAN MARTIN MARTY HELL DISAPPEARED AND NO ONE NOTICED BRITISH EVANGELIST JOHN BLANCHARD THINKS HELL JUST GOT MISLAID LAST MARCH HE PUBLISHED A 300PAGE BOOK WHATEVER HAPPENED TO HELL TO GET MAINLINE CHRISTIAN CHURCHES FIRED UP ABOUT IT AGAIN IN IT HE CITES 700 PASSAGES FROM THE BIBLE THAT HE SAYS SUPPORT THE BELIEF THAT THE WICKED WILL BE DAMNED SOME READERS ARE CLEARLY READY FOR HIS MESSAGE HIS BOOK SOLD OUT ITS FIRST PRINTING OF 5000 COPIES IN A MONTH AND IS NOW IN ITS THIRD PRINTING MR BLANCHARD JUST RETURNED FROM AN 11CITY TOUR IN THE US AT CHRIST COVENANT CHURCH IN MATTHEWS NC FOR INSTANCE 700 PEOPLE HALF THE CONGREGATION TURNED OUT ON A SUNDAY NIGHT TO HEAR ABOUT HIS BOOK MR BLANCHARD DOESN'T BUY THE IDEA THAT HELL MERELY CONSTITUTES SEPARATION FROM GOD A POPULAR CONCEPT AMONG CONTEMPORARY THEOLOGIANS THAT WOULD JUST BE THE STATUS QUO HE SAYS IF A GREATER PUNISHMENT DOESN'T AWAIT EVILDOERS IN THE NEXT LIFE THEN CHRIST'S CRUCIFIXION TO SAVE MANKIND FROM SIN HE REASONS WAS JUST A GRUESOME TRAUMATIC EXPENSIVE WASTE OF TIME IN A NEW EDITION OF THE CATECHISM OF THE CATHOLIC CHURCH THE FIERY FURNACE STUFF IS BACK THE LAST COMPREHENSIVE ANTHOLOGY OF CATHOLIC BELIEFS THE DUTCH CATECHISM CAME OUT IN 1967 IN THE AFTERGLOW OF POPE JOHN XXIII'S ATTEMPTS TO REFORM THE CHURCH THE DUTCH CATECHISM SAID BIBLICAL DESCRIPTIONS OF HELL NEED NOT BE TAKEN AS LITERAL IT LIKENED HELL TO A STATE OF MIND IN WHICH ONE IS ENTIRELY CLOSED IN ON ONESELF WITHOUT CONTACT WITH OTHERS OR WITH GOD IN THE 1992 VERSION HELL REAPPEARS AS THE FIRE THAT NEVER EXTINGUISHES ITSELF A PLACE WHERE MORTAL SINNERS DESCEND IMMEDIATELY AFTER DEATH THE NEW VERSION IS SILENT ON THE DOCTRINE OF LIMBO THAT AMBIGUOUS RESTING PLACE NEITHER HEAVEN NOR HELL THE CHURCH ONCE TAUGHT WAS RESERVED FOR UNBAPTIZED BABIES AND NONCHRISTIANS NO MATTER HOW VIRTUOUS THEY WERE IN LIFE FATHER PAUL BILLINGTON SAYS HE ISN'T SURPRISED THAT A MORE CONSERVATIVE CATHOLICISM IS RESURRECTING OLD NOTIONS OF HELL BUT THE PRIEST WHO WORKS FOR LONDON'S CATHOLIC MISSIONARY SOCIETY STILL DIDN'T EXPECT HELL TO BE RAISED AT HIS LOCAL PUB WHAT'S GOING ON PROF HONDERICK SAYS HELL WAS BOUND TO MAKE A COMEBACK AS THE WORLD GETS TO BE A LOUSIER AND LOUSIER PLACE THE IDEA OF DIVINE PROVIDENCE OF PUNISHMENT IN HELL FOR EVILDOERS STARTS TO LOOK QUITE ATTRACTIVE EVEN HOLLYWOOD HAS PICKED UP THE SCENT A BIG SUMMER HIT WITH THE YOUTH MARKET WAS JASON GOES TO HELL THE FINAL FRIDAY IT GROSSED 153 MILLION IN TICKET SALES SURPRISING EVEN ITS PRODUCERS THOUGH THAT MIGHT SAY MORE FOR JASON THAN FOR HELL AND HELLRAISER 3 HELL ON EARTH A 1992 MONEYMAKER IS NOW OUT ON VIDEO RESEARCH INTO NEARDEATH EXPERIENCES IS SHEDDING SOME LIGHT ON THE DEBATE ABOUT HELL BETWEEN 1991 AND 1992 PETER FENWICK A PSYCHIATRIST AT MAUDSLEY HOSPITAL IN LONDON INTERVIEWED 350 PEOPLE REVIVED AFTER A TRAUMA OR ILLNESS OF THE GROUP 5 FELT THAT THEY HAD EXPERIENCED A FORETASTE OF HELL THE ACCOUNTS OF THOSE FEW SEEM TO REINFORCE TRADITIONAL IMAGES OF HELL ONE MAN REPORTED WALKING ON A PLANK OVER A PIT WHERE HANDS WERE TRYING TO PULL HIM DOWN ANOTHER REPORTED BEING CHASED INTO A TUNNEL BY A HORROR THE MEANING OF IT ALL FOR THE PEOPLE INVOLVED HOWEVER IS MOST UNCERTAIN DR FENWICK SAYS THOSE WHO REPORTED HELLISH NEARDEATH EXPERIENCES WEREN'T BAD PEOPLE THEY WERE PERHAPS PEOPLE WITH A STRONG CONSCIENCE HE SAYS BUT WHO IS TO JUDGE MANY PEOPLE DON'T FEEL THE TUG OF HELL AT ALL COMEDIAN STEVE ALLEN WHO HAS WRITTEN TWO BOOKS ON RELIGION NOTES THAT THE IDEA OF HELL HAS BEEN AROUND SINCE THE ANCIENT HEBREWS WANDERED THE DESERT AS A DETERRENT TO SIN MR ALLEN SAYS HELL HAS BEEN AN UTTER FAILURE 9312270090 931227 NOTICE TO READERS TODAY'S EDITION OF THE WALL STREET JOURNAL APPEARS IN A SINGLE SECTION 9312270089 931206 THE VA'S WAR ON HEALTH BY ROBERT E BAUMAN WHAT WOULD THE CHANCES FOR CONGRESSIONAL APPROVAL OF PRESIDENT CLINTON'S HEALTH CARE PLAN BE IF AMERICANS PEERED INTO THE FUTURE AND DISCOVERED THAT OVER HALF OF THE PATIENTS 55 IN THE PLAN WITH ROUTINE MEDICAL PROBLEMS WAIT THREE HOURS OR LONGER SOMETIMES ALL DAY TO BE SEEN FOR A FEW MINUTES BY AN OVERWORKED DOCTOR STRUGGLING WITH INCREASING NUMBERS OF PATIENTS AND PILES OF GOVERNMENT FORMS REGULATIONS CONTROLS AND POLICY DIRECTIVES ONE OUT OF NINE PATIENTS IDENTIFIED AS SUFFERING URGENT MEDICAL OR PSYCHIATRIC PROBLEMS STILL ARE FORCED TO WAIT UP TO THREE HOURS TO SEE A DOCTOR BECAUSE OF LENGTHY WAITING LISTS PATIENTS IN NEED OF SPECIALIZED CARE SUCH AS A CARDIAC OR ORTHOPEDIC DIAGNOSIS EVEN AT THE SYSTEM'S BEST FACILITIES CAN'T BE SEEN BY A SPECIALIST FOR 60 TO 90 DAYS AND WAIT MONTHS MORE IF SURGERY OR OTHER SPECIAL PROCEDURES ARE REQUIRED THESE ARE NOT SCARE PROJECTIONS BY OPPONENTS TO THE CLINTON PLAN THEY ARE THE FINDINGS OF A JUSTCOMPLETED GENERAL ACCOUNTING OFFICE STUDY OF THE VETERANS HEALTH ADMINISTRATION THE GOVERNMENT'S 63YEAROLD HEALTH CARE SYSTEM VA PROVIDES A CAUTIONARY EXAMPLE OF WHAT HAPPENS WHEN POLITICIANS PUT GOVERNMENT IN THE HEALTH CARE BUSINESS IN A BIG WAY THEN TRY TO MICROMANAGE THE MEDICAL SYSTEM TO PLEASE WELLORGANIZED CONSUMER CONSTITUENTS SACROSANCT BECAUSE OF ITS PATRIOTIC ORIGINS FEW POLITICIANS DARE TO QUESTION THE FUNDAMENTAL ASSUMPTIONS OF A SYSTEM ESTABLISHED TO BIND UP THE WOUNDS OF AMERICAN WARRIORS VA POLICY IS TOO OFTEN A CAPTIVE OF VETERANS' ORGANIZATIONS WHOSE WASHINGTON CLOUT IS LEGENDARY PRESIDENT CLINTON'S NEW SECRETARY OF VETERANS AFFAIRS JESSE BROWN IS A DECORATED COMBAT VETERAN BUT ALSO THE LONGTIME EXECUTIVE DIRECTOR OF THE POWERFUL VETERANS OF FOREIGN WARS ONE OF SEVERAL MAJOR VETERANS GROUPS WITH THOUSANDS OF ACTIVE MEMBERS IN EVERY CONGRESSIONAL DISTRICT THE VA IS THE LARGEST HEALTH CARE SYSTEM PUBLIC OR PRIVATE IN THE US AND ONE OF THE LARGEST IN THE WORLD IT OPERATES 171 MEDICAL CENTERS WITH 80000 BEDS 362 OUTPATIENT AND COMMUNITY CLINICS WITH 23 MILLION PATIENT VISITS ANNUALLY 128 NURSING HOMES WITH 71000 PATIENTS AND 35 DOMICILIARIES CARING FOR 26000 PEOPLE EACH YEAR THERE IS AT LEAST ONE VA MEDICAL CENTER IN EACH OF THE 48 CONTIGUOUS STATES THE DISTRICT OF COLUMBIA AND PUERTO RICO A NEW VA HOSPITAL WILL OPEN SOON IN WEST PALM BEACH FLA A STATE THAT ALREADY HAS THREE HOSPITALS AND ANOTHER IN THE PLANNING STAGE AND PLANS INCLUDE NEW HOSPITALS IN HONOLULU ANCHORAGE AND FAIRFIELD CALIF AS OF JULY 30 243028 EMPLOYEES WORKED IN VA HEALTH SERVICES MANY THOUSANDS OF THEM PAID SALARIES WELL IN EXCESS OF 100000 AND ALL EXEMPTED FROM MOST PERSONAL LIABILITY FOR MEDICAL MALPRACTICE NEARLY 16 BILLION OF THE VA BUDGET FOR FISCAL 1994 WILL GO FOR HEALTH CARE DEFENDERS OF VA POINT TO ITS SIGNIFICANT ACCOMPLISHMENTS INCLUDING ONE OF THE BEST SPINAL CORD INJURY CENTERS IN THE NATION ADVANCED GERIATRIC CARE 6 OF ALL ADULT AIDS CARE AND DEVELOPMENT OF THE CARDIAC PACEMAKER THE CT SCAN PROSTHETICS AND IMPROVED DRUG THERAPY FOR THE MENTALLY ILL MORE THAN HALF OF ALL PRACTICING PHYSICIANS IN THE US RECEIVED PART OF THEIR EDUCATION IN VA FACILITIES SO HOW DO WE EXPLAIN THE GAO REPORT'S FINDINGS WHY DO VA PATIENTS WAIT HOURS OR EVEN MONTHS FOR NEEDED CARE WHY HAVE US TAXPAYERS BEEN HELD RESPONSIBLE FOR HUNDREDS OF MILLIONS OF DOLLARS IN DAMAGES UNDER THE FEDERAL TORT CLAIMS ACT BECAUSE OF THOUSANDS OF MEDICAL MALPRACTICE CLAIMS AGAINST VA PERSONNEL OUT OF AN ESTIMATED 267 MILLION AMERICAN VETERANS ELIGIBLE FOR VA MEDICAL CARE WHY DO FEWER THAN 10 SEEK VA ASSISTANCE VA IS THE QUINTESSENTIAL GOVERNMENT BUREAUCRACY ADMINISTRATIVELY OFFICIOUS AND LADEN WITH RED TAPE AND REGULATORY MINUTIAE DESTRUCTIVE TO BOTH QUALITY PATIENT CARE AND STAFF CONDUCT THREE VOLUMES OF THE US CODE TITLE 38 AND A FULL VOLUME OF THE CODE OF FEDERAL REGULATIONS PLUS SCORES OF VOLUMES OF FEDERAL PERSONNEL AND OTHER POLICY RESTRICTIONS GOVERN EACH VA EMPLOYEE'S EVERY MOVE THOUSANDS OF PAGES PROVIDE DETAILED DESCRIPTIONS OF MEDICAL CONDITIONS DEGREES OF DISABILITY AND POTENTIAL ELIGIBILITY FOR PENSION BENEFITS AND FREE HEALTH CARE MORE THAN 400 VA ATTORNEYS INTERPRET AND REINTERPRET ARCANE PROCEDURAL PROVISIONS ALONG WITH JUSTICE DEPARTMENT LAWYERS THEY ALSO MUST DEFEND THOUSANDS OF MALPRACTICE CLAIMS HERE ARE JUST SOME OF THE FUMBLES OVER A TWOYEAR PERIOD AT ONE VA MEDICAL CENTER I REPRESENTED FOR MORE THAN THREE MONTHS AFTER ABDOMINAL SURGERY AN ELDERLY HOSPITALIZED VETERAN COMPLAINS OF WEAKNESS AND STOMACH PAIN BUT A VA RADIOLOGIST MISREADS THE XRAY SHOWING THE INFECTIONCAUSING LAPROSCOPIC SPONGE OVERLOOKED BY A VA SURGEON SINCE RESIGNED COST TO TAXPAYERS 100000 IN SETTLEMENT DAMAGES A SENIOR VA ORTHOPEDIC SPECIALIST SINCE RETIRED NEARING THE END OF HIS DAILY SHIFT AT 4 PM MISDIAGNOSES A YOUNG VETERAN WITH SEVERE LOWER BACK PAIN WHO IS UNABLE TO STAND AND ORDERS HIM TO BED FOR REST RESULT PERMANENT PARAPLEGIA AND A 2 MILLION SETTLEMENT A PSYCHOTIC AND PROFESSEDLY SUICIDAL PATIENT IS ALLOWED TO SIT FOR MORE THAN FOUR HOURS IN A VA WAITING ROOM WALKS TO HIS CAR AND SHOOTS HIMSELF IN THE MOUTH HIS FATE TO LIVE HIS FEW REMAINING YEARS PARALYZED FROM THE NECK DOWN AND UNABLE TO BREATHE WITHOUT MECHANICAL SUPPORT DOCTORS AT ANOTHER VA MEDICAL CENTER FREELY PROVIDE VALIUM TO A NERVOUSSTOMACHED VETERAN FOR 20 YEARS WHO BECOMES ADDICTED TO BENZODIAZAPINES ON VACATION HE GOES TO THIS VA MEDICAL CENTER IS ABRUPTLY REMOVED FROM VALIUM AND GOES INTO SEIZURES HE SURVIVES BUT IT COSTS THE TAXPAYERS A 50000 SETTLEMENT IT REQUIRES TWO YEARS OF HEARINGS AND PAPERWORK TO FIRE A DEPRESSED VA NURSE DEEMED TO BE A THREAT TO PATIENTS ELSEWHERE AT THE SALEM VA VA MEDICAL CENTER PATIENTS REPEATEDLY HAVE WANDERED INTO THE WOODS ONLY TO BE FOUND DEAD ONE MAN A YEAR AFTER HIS DISAPPEARANCE AT THE MIAMI VA MEDICAL CENTER A TECHNICIAN MISREADS VITAL SIGNS AFTER OPEN HEART SURGERY AND A FATHER OF TWO DIES THE FEDERAL COURT AWARD NEARLY 3 MILLION FOR SURVIVORS AT THE WEST CHICAGO VA MEDICAL CENTER OPERATIONS ARE SUSPENDED AFTER AN ALARMINGLY HIGH DEATH RATE IS ATTRIBUTED TO SURGICAL INCOMPETENCE AS EVIDENCED BY THE 66PAGE GAO REPORT ONE OF THE MAJOR VA SYSTEM PROBLEMS IS A GROWING DEMAND FOR FREE MEDICAL SERVICES VETERANS WITH SERVICECONNECTED DISABILITIES OR CONDITIONS ARE BY LAW ELIGIBLE FOR FREE VA MEDICAL TREATMENT OTHER VETERANS CAN RECEIVE FREE HEALTH CARE ON AN AS AVAILABLE BASIS DEPENDING ON THE CASE LOAD OF THE FACILITY THUS THE LONG WAITING LINES I PACK A LUNCH AND TAKE A BOOK ONE UNIDENTIFIED VETERAN TOLD THE GAO BE PREPARED TO SPEND THE DAY THERE RETIRED 69YEAROLD ARMY MAJ ELMER ERICKSON TOLD A MIAMI HERALD REPORTER AT A FLORIDA VA CLINIC YOU WILL EVENTUALLY SEE A DOCTOR ANOTHER REASON FOR INCREASED PATIENT DEMAND AT VA IS ATTRIBUTABLE TO THE DISTORTION OF THE SERVICE CONNECTION A COMBATWOUNDED SOLDIER OR SAILOR SUFFERS A DEFINABLE MEDICAL INJURY AND THIS ESTABLISHES HIS VA ELIGIBILITY BUT WHAT HAPPENS WHEN THE US GOVERNMENT SPRAYS AGENT ORANGE ALL OVER VIETNAM DURING THAT WAR AND 30 YEARS LATER THOUSANDS OF VETERANS CLAIM THEY ARE SUFFERING VARIOUS MEDICAL PROBLEMS AS A RESULT THE MEDICALLY QUESTIONABLE RESULT VA SECRETARY BROWN RULED ON SEPT 27 AFTER YEARS OF STUDIES COSTING MILLIONS OF DOLLARS THAT VETERANS WITH CERTAIN TYPES OF RESPIRATORY CONDITIONS ARE ELIGIBLE FOR DISABILITY PENSIONS AND FREE HEALTH CARE A SIMILARLY COSTLY SCENARIO IS NOW DEVELOPING WITH GULF WAR SYNDROME A MYSTERIOUS MALADY SAID TO BE AFFLICTING THOUSANDS OF VETERANS UNDER PRESSURE FROM VETERANS GROUPS AND CONGRESS VA ON NOV 3 DESIGNATED A SPECIAL TASK FORCE TO INVESTIGATE SERVICERELATED ELIGIBILITY FOR SUFFERERS FROM THIS NEW DISEASE THE CLINTON PLAN DESPITE ITS PLAN TO MASSIVELY REFORM HEALTH CARE PROPOSES THAT VA CONTINUE AS A FEDERALLY FINANCED SYSTEM INDEPENDENT OF THE NEW SCHEME PROMISING STILL GREATER EXPANSION OF FREE VETERANS MEDICAL BENEFITS THE POLITICALLY UNTOUCHABLE VA WON'T HAVE TO COMPETE ON ITS MERITS IN THE MARKETPLACE A STERN MANDATE THE CLINTON PLAN SEEKS TO IMPOSE ON ALL OTHER AMERICAN HEALTH CARE PROVIDERS THIS BUSINESSASUSUAL APPROACH WILL UNDOUBTEDLY PLEASE CONGRESS AND THE ORGANIZED VETERANS GROUPS MR BAUMAN SERVED IN THE HOUSE FROM MARYLAND 197381 FROM 1990 TO JULY 1993 HE WAS AN ATTORNEY WITH THE US DEPARTMENT OF VETERANS AFFAIRS SEE RELATED LETTER LETTERS TO THE EDITOR MEDICAL REFORM VA'S READY AND ABLE WSJ DEC 27 1993 9312060099 YY93 MM12 9312270088 931227 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN JAPAN'S RECESSION HAS MADE TOKYO BUSINESSMEN MORE FRUGAL AND FREED MORE TIME FOR THEIR FAMILIES A SURVEY FOUND BECAUSE OF THE AILING ECONOMY 21 OF THE RESPONDENTS AGED 30 TO 50 HAVE SMALLER WORKLOADS AND 43 HAVE HAD SALARY REDUCTIONS ACCORDING TO THE SURVEY BY DAIICHI KANGYO BANK WITH LESS PAY 59 CUT PURCHASES OF FURNITURE HOME ELECTRONICS AND CLOTHES AND 40 BOUGHT FEWER BUSINESS SUITS WHILE INCREASINGLY BUYING SUITS AT DISCOUNT STORES AND 20 SAID THEIR WIVES MANY COMMONLY MANAGE HOUSEHOLD BUDGETS REDUCED THEIR ALLOWANCES BUT TWOTHIRDS DIDN'T CUT BACK THEIR SPENDING ON CULTURAL EVENTS PURCHASES OF BOOKS OR THEIR CHILDREN'S EDUCATION HALF THE RESPONDENTS CITED FEWER OPPORTUNITIES TO TREAT CLIENTS TO DINNERS 38 CUT BACK DRINKING WITH COLLEAGUES AND 45 HAD SMALLER ENTERTAINMENT BUDGETS ABOUT 20 SPENT MORE TIME WITH THEIR CHILDREN AND 25 INCREASED OUTSIDE ACTIVITIES AS OVERTIME REQUIREMENTS DECLINED CHINA CONTINUING ITS ANTIGRAFT CAMPAIGN FORBADE BUREAUCRATS FROM SPENDING ON LAVISH BANQUETS AND OVERSEAS JUNKETS AT PUBLIC EXPENSE IN THE RUNUP TO THE LUNAR NEW YEAR ON FEB 10 THE HOLIDAY OBSERVED AS THE SPRING FESTIVAL TRADITIONALLY PROMPTS THE YEAR'S BIGGEST CELEBRATIONS WITH MILLIONS OF CIVIL SERVANTS SHELLING OUT HUGE SUMS ON FEASTS GIFTGIVING AND OTHER INDULGENCES CHINA'S LATEST CRACKDOWN ON WIDESPREAD CORRUPTION HAS RESULTED IN 50000 ECONOMICCRIME CASES SUCH AS BRIBERY AND EMBEZZLEMENT THIS YEAR SUCH PREVIOUS CAMPAIGNS WERE SHORTLIVED AND OFFICIALS GOT BACK TO BUSINESS AS USUAL IF CYPRUS DOESN'T IMPLEMENT A LAW TO FIGHT PIRACY OF INTELLECTUAL PROPERTY THE US WARNED IT WOULD MOVE TO SUSPEND PREFERENTIAL DUTIES FOR IMPORTS FROM THE MEDITERRANEAN ISLAND COUNTRY THE US AFTER A REVIEW OF CYPRIOT PRACTICES UNDER THE GENERALIZED SYSTEM OF PREFERENCES CONCLUDED THAT TRADE BENEFITS SHOULD BE SUSPENDED BUT DEFERRED SUCH ACTION BECAUSE OF AN IMPROVED CYPRIOT COPYRIGHT LAW TO TAKE EFFECT WITH THE NEW YEAR THE US FILM INDUSTRY HAS ESTIMATED IT LOST 151 MILLION IN SALES FROM VIDEO PIRACY IN CYPRUS IN THE PAST TWO YEARS VENEZUELA SAID 39 OF ITS PEOPLE LIVE IN POVERTY CITING STIFF ECONOMIC REFORMS IMPOSED IN 1989 EXTREME POVERTY AFFECTS 16 OF THE POPULATION MORE THAN HALF THE RESIDENTS OF 11 OF THE 23 STATES WERE CLASSIFIED AS POOR IN THE CARACAS METROPOLITAN AREA WITH 21 MILLION PEOPLE AND HILLSIDE SLUMS MAKING THE POOR HIGHLY VISIBLE THE CAPITAL'S POVERTY RATE IS 25 THE LOWEST IN THE COUNTRY LOWER AND MIDDLE CLASSES HAVE BEEN HURT BY FOUR YEARS OF REFORMS THAT ELIMINATED PRICE CONTROLS AND SUBSIDIES THE POVERTY RATE IN 1989 WAS 14 CHINA PLANS TO LIFT PRICE CONTROLS ON COAL EARLY NEXT YEAR IN A BID TO MAKE THE INEFFICIENT AND INDEBTED INDUSTRY PROFITABLE BY 1996 IT ALSO WILL REDUCE OR ELIMINATE IN SOME REGIONS THE CONTROLS ON THE AMOUNT OF COAL SUBJECT TO GOVERNMENT DISTRIBUTION COAL PRICES WERE KEPT ARTIFICIALLY LOW FOR DECADES AND MINES RACKED UP HUGE LOSSES LAST YEAR THE STATE DEREGULATED PRICES FOR 20 OF THE NATION'S COAL CLOSED 19 MINES AND LAID OFF 280000 OR 4 OF THE SECTOR'S EMPLOYEES HUNDREDS OF THOUSANDS MORE LAYOFFS ARE EXPECTED NEXT YEAR UNTIL THE RUMP STATE OF YUGOSLAVIA JUGGLES THE NUMBERS ON ITS CURRENCY AT YEAR END CONSUMERS HAVE A NEW 500 BILLIONDINAR BANKNOTE TO COPE WITH UNCONTROLLABLE INFLATION IN AN ECONOMY REELING FROM CIVIL WAR WHEN THE BILL WAS PRINTED LATE LAST WEEK ITS VALUE OF LESS THAN 10 DWINDLED TO LESS THAN 2 IN A FEW DAYS AS DECEMBER INFLATION ALONE MAY HIT 250000 AT THE WEEKEND NINE ZEROES WILL BE ELIMINATED FROM THE CURRENCY TURNING A BILLION DINARS INTO ONE DINAR ONLY LAST OCTOBER HYPERINFLATION FORCED SERBIA AND MONTENEGRO TO REMOVE SIX ZEROES RUSSIAN PRESIDENT BORIS YELTSIN SET UP A FEDERAL BANKRUPTCY MECHANISM CLEARING THE WAY FOR THE MANDATORY SALE OF INSOLVENT STATERUN ENTERPRISES WHICH THE INTERFAX NEWS AGENCY SAID TOTAL ABOUT 8000 MR YELTSIN'S DECREE ASSIGNED THE STATE PROPERTY COMMITTEE'S INSOLVENCY AFFAIRS DEPARTMENT TO IDENTIFY FAILING ENTERPRISES AND DECIDE THEIR FUTURE UNTIL NOW THE LEGAL INABILITY TO CLOSE UNPROFITABLE STATE ENTERPRISES HAS BEEN AN IMPEDIMENT TO RUSSIA'S WOBBLY ECONOMIC REFORMS BECAUSE THE COMPANIES IMPOSED A CONSTANT DRAIN ON THE GOVERNMENT BUDGET UNDER THE DECREE BUSINESSES THAT ARE DECLARED INSOLVENT MAY BE LIQUIDATED RESTRUCTURED OR TRANSFERRED TO OTHER OWNERS INCLUDING THE PRIVATE SECTOR THE INSOLVENCY AGENCY ALSO WILL REPRESENT THE GOVERNMENT'S INTERESTS IN BANKRUPTCY CASES INVOLVING STATE ENTERPRISES OR BUSINESSES WITH GOVERNMENTOWNED SHARES THE BUSTLING SOUTHERN CHINESE CITY OF GUANGZHOU FORMERLY CANTON IS TO BEGIN CONSTRUCTION THIS WEEK ON ITS FIRST SUBWAY AND ITS BIGGESTEVER PUBLICWORKS PROJECT THE TRAIN SYSTEM EXPECTED TO COST 104 BILLION IS INTENDED TO EASE CHRONIC TRAFFIC CONGESTION ARGENTINA INSTALLED ARMANDO CARO FIGUEROA AS LABOR MINISTER SUCCEEDING ENRIQUE RODRIGUEZ WHO RESIGNED TO PROTEST A RULE THAT SLASHES EMPLOYER CONTRIBUTIONS TO UNIONMANAGED BENEFIT PROGRAMS MR CARO FIGUEROA HAS BEEN A DEPUTY LABOR MINISTER 9312270087 931227 INTERNATIONAL BRIEF ISUZU MOTORS LTD UNCONSOLIDATED PRETAX LOSS SHRANK IN LATEST FISCAL YEAR ISUZU MOTORS LTD JAPAN'S BIGGEST TRUCK MAKER POSTED A NARROWER UNCONSOLIDATED PRETAX LOSS OF 1020 BILLION YEN 924 MILLION FOR THE YEAR ENDED OCT 31 AS CORPORATE RESTRUCTURING PROCEEDED A YEAR EARLIER THE PRETAX LOSS TOTALED 2355 BILLION YEN NET INCOME IN THE MOST RECENT YEAR TOTALED 396 BILLION YEN IN CONTRAST TO A NET LOSS OF 1268 BILLION YEN A YEAR EARLIER SALES FELL 21 TO 1174 TRILLION YEN FROM 1199 TRILLION DESPITE COST REDUCTIONS ISUZU CONTINUED TO SUSTAIN HEAVY PRETAX LOSSES BECAUSE OF WEAK SALES THE BURDEN OF INVESTMENT AND DEPRECIATION COSTS RELATED TO NEW PRODUCT DEVELOPMENT AS WELL AS ENVIRONMENT AND SAFETY MEASURES INTEREST PAYMENTS AND LOSSES FROM THE YEN'S APPRECIATION THAT REDUCED THE JAPANESECURRENCY VALUE OF WHAT THE COMPANY EARNED FROM FOREIGN CURRENCYDENOMINATED EXPORTS 9312270086 931227 BUSINESS BRIEF ST MARY LAND & EXPLORATION CO FOURTHPERIOD WRITEDOWN LIKELY DUE TO OIL PRICE DROP ST MARY LAND & EXPLORATION CO SAID THE RECENT PLUNGE IN OIL PRICES WILL LIKELY RESULT IN A WRITEDOWN OF ITS OIL FIELDS IN THE FOURTH QUARTER TO REFLECT THE DROP THE OIL AND GAS COMPANY SAID THE WRITEDOWN WOULDN'T AFFECT ALL ITS PRODUCTION NOTING THAT MORE THAN TWOTHIRDS OF ITS OUTPUT IS NATURAL GAS MARK HELLERSTEIN PRESIDENT OF DENVERBASED ST MARY SAID HE DIDN'T KNOW HOW LARGE THE WRITEDOWN WOULD BE BECAUSE IT WILL DEPEND ON THE PRICE OF OIL AT THE END OF THE QUARTER BUT HE SAID ST MARY CONTINUES TO HAVE AN UNUSUALLY STRONG BALANCE SHEET WITH AN UNUSED 30 MILLION CREDIT FACILITY IN PLACE THE COMPANY SAID IT ISSUED ITS STATEMENT IN AN ATTEMPT TO EXPLAIN THE RECENT DROP IN ITS STOCK PRICE ADDING THAT THE DROP WAS APPARENTLY CAUSED BY AN ANALYST'S COMMENTS ANTICIPATING WRITEDOWNS ST MARY CLOSED THURSDAY AT 12 UP 75 CENTS IN NASDAQ STOCK MARKET TRADING AS RECENTLY AS DEC 20 IT TRADED ABOVE 14 IN THE 1992 FOURTH QUARTER ST MARY HAD NET INCOME OF 23 MILLION OR 31 CENTS A SHARE ON REVENUE OF 123 MILLION 9312270085 931227 LETTERS TO THE EDITOR MEDICAL REFORM VA'S READY AND ABLE YOU GAVE FORMER MARYLAND CONGRESSMAN ROBERT E BAUMAN A LOT OF SPACE ON YOUR EDITORIAL PAGE TO MAKE A CASE FOR KEEPING THE GOVERNMENT OUT OF HEALTH CARE REFORM BECAUSE OF WHAT HE PURPORTS TO KNOW ABOUT VA THE DEPARTMENT OF VETERANS AFFAIRS THE VA'S WAR ON HEALTH DEC 6 IN AN ERRORRIDDLED DIATRIBE HE LAMBASTED AN ORGANIZATION THAT NOT ONLY PROVIDED HIM A LIVELIHOOD FOR A BRIEF TIME BUT FOR WHICH HE REGULARLY POSTURED SUPPORT WHEN HE SERVED IN THE HOUSE IT IS PAINFULLY CLEAR THAT MR BAUMAN MUST NOT HAVE READ PRESIDENT CLINTON'S HEALTH CARE REFORM PROPOSALS HE BOLDLY ASSERTS THAT VA WON'T HAVE TO COMPETE ON ITS MERITS IN THE MARKETPLACE IN FACT THAT IS WHAT REFORM CALLS FOR TO HAVE VA ORGANIZE ITSELF INTO HEALTH PLANS SUBJECTED TO THE SAME RULES AND MARKET FORCES OF OTHER PROVIDERS A THESIS BASED UPON AN EXACTLY OPPOSITE ASSERTION IS HARDLY WORTH SERIOUS ATTENTION FRANKLY I AM MOST CONCERNED THAT MR BAUMAN'S PORTRAYALS OF THE DELIVERY OF VA HEALTH CARE WILL THEMSELVES BE ACCEPTED HE ARGUES THAT HIS MARGINAL EXPERIENCE WITH A HANDFUL OF MEDICAL TORT CLAIMS AND A GAO REPORT ON OUTPATIENT WAITING TIMES ADD UP TO PROOF THAT WHEN IT COMES TO HEALTH CARE REFORM NEITHER VA NOR THE FEDERAL GOVERNMENT SHOULD BE TRUSTED THESE ALLEGED ENVIRONMENTS HE SAYS MAKE A CASE NOT TO ENLARGE THE GOVERNMENT'S ROLE AS A DIRECT PROVIDER DESPITE THE FACT THAT THE PRESIDENT IS NOT PROPOSING TO DO THAT MR BAUMAN'S DESCRIPTION OF FIVE CIVILSUIT ANECDOTES DO NOT AMOUNT TO CONVINCING EVIDENCE IN ANNUALLY DELIVERING ABOUT 24 MILLION EPISODES OF CARE THERE ARE ERRORS AND SUBSEQUENT LEGAL CLAIMS NOT THE THOUSANDS MR BAUMAN ASSERTS BUT JUST ABOUT 800 CLAIMS LAST YEAR A RATE BY THE WAY THAT IS ONLY AROUND ONETHIRD THE FREQUENCY OF MALPRACTICE CLAIMS IN THE PRIVATE SECTOR VA'S REAL MEDICAL QUALITY IS ASSESSED BY THE SAME IMPARTIAL BODY THAT REVIEWS MOST HOSPITALS PUBLIC AND PRIVATE THE JOINT COMMISSION ON ACCREDITATION OF HEALTHCARE ORGANIZATIONS VA'S AVERAGE SCORES ARE ABOUT 10 POINTS HIGHER THAN OTHER PROVIDERS ON THE GAO MATTER I REGISTERED MY RESERVATION ABOUT THEIR FINDINGS OF PROTRACTED WAITING TIMES AT ONLY 16 OF MORE THAN 350 VA CLINICS IN THE CONTEXT OF OUR OWN SYSTEMWIDE DATA THAT SHOW WE HANDLE EMERGENCY CASES WITHIN 30 MINUTES 99 OF THE TIME WE ALSO HAVE RECENT PATIENT SURVEYS ON WAITING TIMES WITH AN 89 SATISFACTION RATE BUT WE ARE THE FIRST TO ADMIT THAT OUR ENVIRONMENT IS HOBBLED BY A VERY COMPLEX SET OF ELIGIBILITY CRITERIA AND THAT GIVEN THE SAME FREEDOMS AS OTHER PROVIDERS WE CAN IMPROVE THAT IS WHERE HEALTH CARE REFORM WILL TAKE US IT WILL ALLOW VA TO DO WHAT IT DOES BEST MANAGE CARE WITH A GLOBAL BUDGET AND COMPETE FOR THE ENROLLMENT OF ALL VETERANS WHO UNDER REFORM WILL HAVE THE OPTION TO CHOOSE OTHER PLANS WE BELIEVE WE CAN DO WELL IN THE MARKETPLACE AND OUR ADMINISTRATORS AND CAREGIVERS ARE EXCITED ABOUT THOSE PROSPECTS 9312270084 931227 BLACK MAJORITY DISTRICTS A ROTTEN LITMUS TEST BY CAROL M SWAIN STRONG OPPOSITION FROM A FEW SELFINTERESTED BLACK MEMBERS OF CONGRESS LED TO THIS MONTH'S WITHDRAWAL OF JOHN PAYTON PRESIDENT CLINTON'S LATEST CHOICE TO BE ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS THE CONGRESSMEN REPORTEDLY WITHHELD SUPPORT FOR MR PAYTON A BLACK ATTORNEY BECAUSE HE HAD FAILED TO BACK STRONGLY THE CREATION OF SPECIAL BLACKMAJORITY CONGRESSIONAL DISTRICTS MR PAYTON APPARENTLY HELD VIEWS THAT DIFFERED AT LEAST SLIGHTLY FROM THOSE OF THE PREVIOUS CANDIDATE FOR THE JOB LANI GUINIER BUT HE FOLLOWS HER FATEFUL PATH THE RESULT IS THAT A YEAR INTO THE ADMINISTRATION THIS IMPORTANT JUSTICE DEPARTMENT POST REMAINS UNFILLED THERE IS NO VIABLE CANDIDATE ON THE HORIZON WHO CAN PASS THE VARIOUS LITMUS TESTS ON MINORITY REPRESENTATION IT IS CRUCIAL THAT WE EXAMINE THE ISSUES SURROUNDING BLACK LEADERSHIP WHEN THE 103RD CONGRESS WAS SWORN INTO OFFICE IN JANUARY 1993 THE NUMBER OF BLACK HOUSE MEMBERS SOARED TO 38 FROM 25 AMERICANS WATCHED AS THE NATION'S FIRST BLACK DEMOCRATIC SENATOR CAROL MOSELEYBRAUN TOOK THE OATH OF OFFICE AFRICANAMERICANS NOW MAKE UP 9 OF THE HOUSE AND 1 OF THE SENATE TWELVE PERCENT OF THE NATION'S POPULATION IS BLACK IF BLACKS CONTINUE TO INCREASE THEIR NUMBERS ON CAPITOL HILL CONGRESS MAY SOON BE RACIALLY REPRESENTATIVE BUT CAN THAT OCCUR PARADOXICALLY THE VERY ELECTORAL AND POLITICAL GEOGRAPHY THAT HAS GIVEN BLACKS A VOICE ON THE HILL COULD SPELL AN END TO FURTHER ADVANCES BLACKS' RECENT PROGRESS IN CONGRESSIONAL ELECTIONS IS IN PART A RESULT OF SEGREGATING AFRICANAMERICAN VOTERS INTO BLACKMAJORITY DISTRICTS THIS STRATEGY MAY NOT ONLY CAP THE NUMBER OF BLACKS IN THE HOUSE BUT ALSO CUT BLACK LEADERS OFF FROM WHITE VOTERS WHOSE SUPPORT BLACK POLITICIANS NEED TO WIN GOVERNORSHIPS AND SEATS IN THE US SENATE THE ZEAL TO DRAW BLACKMAJORITY DISTRICTS HAS LED TO THE CREATION OF BIZARRE DISTRICTS SUCH AS NORTH CAROLINA'S 12TH DISTRICT A SERPENTINE MONSTROSITY THAT RUNS 160 MILES ALONG INTERSTATE 85 IN JUNE 1993 A SHARPLY DIVIDED SUPREME COURT CHALLENGED BY WHITE VOTERS QUESTIONED ALL RACECONSCIOUS DISTRICTING PLANS IN SHAW V RENO JUSTICE SANDRA DAY O'CONNOR WRITING FOR THE MAJORITY SAID RACIAL CLASSIFICATIONS OF ANY SORT POSE THE RISK OF LASTING HARM TO OUR SOCIETY THEY REINFORCE THE BELIEF HELD BY TOO MANY FOR TOO MUCH OF OUR HISTORY THAT INDIVIDUALS SHOULD BE JUDGED BY THE COLOR OF THEIR SKIN RACIAL CLASSIFICATIONS WITH RESPECT TO VOTING CARRY PARTICULAR DANGERS RACIAL GERRYMANDERING EVEN FOR REMEDIAL PURPOSES MAY BALKANIZE US INTO COMPETING FACTIONS AND IT THREATENS TO CARRY US FURTHER FROM THE GOAL OF A POLITICAL SYSTEM IN WHICH RACE NO LONGER MATTERS WHILE THE COURT SAID THAT SHARED RACE CANNOT BE THE SOLE CRITERION FOR DRAWING DISTRICT LINES IT LEFT OBSERVERS WITH NO REAL STANDARDS WITH WHICH TO EVALUATE DISTRICTING PLANS IT ALSO FAILED TO NOTE THE COMPLEXITY OF REPRESENTATION BLACKS' GOAL OF ADEQUATE REPRESENTATION IN STATE AND FEDERAL LEGISLATURES HAD ALREADY BEEN COMPLICATED BY AN EARLIER RULING IN VOINOVICH V QUILTER 1993 IN THAT CASE A UNANIMOUS COURT UPHELD AN OHIO REDISTRICTING PLAN THAT CONCENTRATED BLACK VOTERS INTO STATE LEGISLATIVE DISTRICTS EVEN THOUGH THERE WAS NO EVIDENCE OF DISCRIMINATION OR OBSTACLES TO THE VOTERS' ABILITY TO ELECT CANDIDATES OF THEIR CHOICE WRITING FOR THE COURT IN THAT CASE JUSTICE O'CONNOR SAID THE STATE MAY CREATE ANY DISTRICT IT MIGHT DESIRE SO LONG AS MINORITY VOTING STRENGTH IS NOT DILUTED AS A RESULT IN THE SAME DECISION THE COURT IGNORED THE PLEAS OF FOUR BLACK DEMOCRATIC CONGRESSMEN MIKE ESPY OF MISSISSIPPI NOW AGRICULTURE SECRETARY LOUIS STOKES D OHIO CRAIG WASHINGTON D TEXAS AND ALAN WHEAT D MO THEY OPPOSED THE STATE'S PLAN TO CONCENTRATE BLACK VOTERS INSTEAD OF A FEW DISTRICTS WITH BLACK MAJORITIES THESE REPRESENTATIVES PREFERRED MORE DISTRICTS WHERE SIZABLE BLACK POPULATIONS COULD INFLUENCE VOTING OUTCOMES THE SEGREGATION OF BLACK VOTERS INTO BLACKMAJORITY DISTRICTS MAY PRODUCE EASY ELECTORAL VICTORIES FOR BLACK CANDIDATES AND MAY INSULATE INCUMBENTS FROM OPPONENTS BUT IT VIRTUALLY PRECLUDES FURTHER POLITICAL GAINS AS OTHER MINORITIES SUCH AS ASIANS AND ESPECIALLY LATINOS GAIN POLITICAL AND DEMOGRAPHIC GROUND BLACKS AND WHITES MAKE UP DECLINING PERCENTAGES OF THE NATIONAL POPULATION SINCE THE TURNOUT OF BLACK VOTERS IS SMALLER THAN THAT OF WHITE VOTERS AND SINCE THE BLACK POPULATION IS BECOMING LESS GEOGRAPHICALLY CONCENTRATED BLACKMAJORITY DISTRICTS DO NOT SEEM A PROMISING WAY TO SIGNIFICANTLY INCREASE BLACKS' REPRESENTATION IF BLACK CANDIDATES MOSTLY RUN FOR OFFICE IN BLACK DISTRICTS THOSE WHO CHOOSE TO SEEK STATEWIDE OFFICE SUCH AS GOVERNOR OR US SENATOR FACE AN ADDED DISADVANTAGE THEY LACK CONNECTIONS TO INFLUENTIAL WHITE VOTERS WHOSE SUPPORT THEY NEED THEY ALSO ACCUMULATE LITTLE EXPERIENCE IN DEVELOPING AND MAINTAINING BIRACIAL COALITIONS AN INCREASING NUMBER OF BLACKS HAVE BEEN ELECTED IN MAINLY WHITE JURISDICTIONS AT ALL LEVELS OF GOVERNMENT VIRGINIA ELECTED DOUGLAS L WILDER AS GOVERNOR ALAN WHEAT DEMOCRAT OF MISSOURI WAS FIRST ELECTED TO THE HOUSE IN 1982 FROM AN 80 WHITE DISTRICT AND GARY FRANKS REPUBLICAN OF CONNECTICUT WAS FIRST ELECTED IN 1990 IN A DISTRICT THAT IS 4 BLACK MORE RECENTLY CAROL MOSELEYBRAUN OF ILLINOIS DEFEATED A TWOTERM WHITE INCUMBENT AND WAS ELECTED TO THE SENATE FROM A STATE THAT IS ONLY 16 BLACK THERE IS NO REASON WHY BLACKS ELECTED IN WHITEMAJORITY DISTRICTS CANNOT REPRESENT THE PREFERENCES OF BLACK VOTERS AND STILL FIND FAVOR WITH WHITES MR WHEAT WHO CONSISTENTLY HOLDS POSITIONS FAVORED BY NATIONAL DEMOCRATIC LEADERS WHITE AND BLACK HAS BEEN REELECTED WITH HIGH MARGINS MR FRANKS' SUPPORT OF GOP INITIATIVES SERVES TO REMIND PEOPLE THAT NOT ALL BLACKS ARE LIBERAL DEMOCRATS WHEN CANDIDATES SHARE THE CONCERNS OF VOTERS RACIAL DIFFERENCES SHRINK INTO INSIGNIFICANCE BUT BECAUSE OF THE UNFORTUNATE EMPHASIS ON RACE IT IS OFTEN ASSUMED THAT BLACKS MUST BE REPRESENTED BY BLACKS LATINOS BY LATINOS ASIANS BY ASIANS IT HAS THEREFORE BECOME POLITICALLY INCORRECT FOR A WHITE POLITICIAN TO COMPETE FOR ELECTION IN A MINORITYDOMINATED DISTRICT ROBERT TALLON JR OF SOUTH CAROLINA AND STEPHEN SOLARZ OF NEW YORK BECAME POLITICAL CASUALTIES OF RECENT REDISTRICTING UNDER PRESSURE FROM BLACK POLITICIANS MR TALLON DECLINED TO RUN FOR REELECTION AND MR SOLARZ WAS DEFEATED IN THE DEMOCRATIC PRIMARY AFTER PARTY LEADERS FROWNED ON HIS DECISION TO RUN IN A DISTRICT CREATED TO ELECT A LATINO WASTED WERE HIS ALMOST 20 YEARS IN THE HOUSE IN ANOTHER CASE THOMAS FOGLIETTA FROM PENNSYLVANIA NOW HAS A MAJORITY BLACK DISTRICT IN OVERALL POPULATION DUE TO REDISTRICTING UNLESS VIEWS OF REPRESENTATION CHANGE MR FOGLIETTA MUST GIVE UP 13 YEARS OF SENIORITY TO MAKE ROOM FOR BLACK REPRESENTATION THOSE OF US IN THE BLACK COMMUNITY WHO HAVE LOOKED AT THE VOTINGRIGHTS ISSUE ARE DIVIDED ON HOW BEST TO INCREASE MINORITY REPRESENTATION FOR BLACK POLITICIANS TO INCREASE THEIR NUMBERS IN CONGRESS AS WELL AS THEIR INFLUENCE THEY MUST WIN THE SUPPORT OF WHITE VOTERS IN DISTRICTS WITH WHITE MAJORITIES THEY MUST ALSO EMBRACE A POLITICS IN WHICH EFFECTIVE REPRESENTATION DEPENDS ON COMMONALITIES OF PRINCIPLES AND VALUES NOT JUST ON SHARED PIGMENTATION MS SWAIN ASSOCIATE PROFESSOR AT PRINCETON'S WOODROW WILSON SCHOOL AND VISITING FELLOW AT NEW YORK'S RUSSELL SAGE FOUNDATION IS THE AUTHOR OF BLACK FACES BLACK INTERESTS THE REPRESENTATION OF AFRICANAMERICANS IN CONGRESS HARVARD UNIVERSITY PRESS 1993 9312270083 931227 LETTERS TO THE EDITOR RISKY BUSINESS REGARDING YOUR DEC 6 ARTICLE WALKING WOUNDED SURVIVORS OF LAYOFFS AS A FORMER JOSTENS EMPLOYEE WHOSE DIVISION WAS RECENTLY ELIMINATED I RAIL SILENTLY AT MINDS WHO BELIEVE CERTAIN BUSINESSES FUNCTION IN A VACUUM THE EMPTINESS OF COURSE REFLECTS AN EMPLOYEE FAILURE TO RECOGNIZE THE OBJECTIVE REALITY OF THEIR PLACE IN AN OPERATING UNIT THAT A DIVISION IS A PROFIT CENTER AND SUBJECT TO MARKET FORCES AND MANAGEMENT DECISIONS WHETHER THEY ARE GOOD OR BAD AS BEINGS OF VOLITIONAL CONSCIOUSNESS EMPLOYEES BY VIRTUE OF THEIR DECISION TO BE EMPLOYED ALSO ASSUME A RISK TO BE UNEMPLOYED THEREFORE THEY HAVE A PERSONAL OBLIGATION GOING IN TO RECOGNIZE THAT THE WELFARE STATE DOES NOT APPLY TO THE MARKET PLACE AND THAT A IS STILL A NO AMOUNT OF FEAR APPREHENSION OR ANXIETY WILL CHANGE THAT REALITY 9312270081 931227 BUSINESS BRIEF VIDEO LOTTERY TECHNOLOGIES INC STOCK FALLS 107 AS QUEBEC REJECTS SUPPLIER LICENSE BID VIDEO LOTTERY TECHNOLOGIES INC SHARES SLID 107 ON NEWS THAT THE COMPANY HAS ENCOUNTERED ANOTHER LICENSING SETBACK THIS TIME IN CANADA THE BOZEMAN MONT MAKER OF GAMBLING EQUIPMENT SAID AUTHORITIES IN QUEBEC DENIED ITS REQUEST TO BE LICENSED AS A SUPPLIER OF SUCH EQUIPMENT TO THE PROVINCE IN HEAVY TRADING ON THE NASDAQ STOCK MARKET THURSDAY VIDEO LOTTERY SHARES TUMBLED 2 TO 1675 A VIDEO LOTTERY SPOKESMAN SAID THE DENIAL WAS APPARENTLY BASED MAINLY ON THE COMPANY'S FORMER TIES TO FOUNDER LARRY LIPPON MR LIPPON RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN OCTOBER 1992 SHORTLY AFTER OFFICIALS IN VICTORIA AUSTRALIA REMOVED THE COMPANY FROM A LIST OF APPROVED SUPPLIERS CITING MR LIPPON'S ONETIME ASSOCIATION WITH TWO CRIMINALS AND OTHER RESERVATIONS ABOUT HIS PAST THE VICTORIA AUTHORITIES RETURNED THE COMPANY TO THE LIST EARLIER THIS MONTH VIDEO LOTTERY SAID IT WAS DISAPPOINTED BY QUEBEC'S DECISION AND WILL PURSUE REMEDIES IN CANADIAN COURTS 9312270079 931227 MARKETING BRIEF NEWS CORP STAR TV UNIT TO PURCHASE STAKE IN INDIAN BROADCASTER NEWS CORP SAID ITS STAR TELEVISION LTD UNIT AGREED TO PURCHASE 499 OF ASIA TODAY LTD BROADCASTER OF THE POPULAR HINDI LANGUAGE CHANNEL ZEE TV ZEE TV WILL CONTINUE TO BE OPERATED BY ITS CURRENT MANAGEMENT TEAM IN BOMBAY INCLUDING ALL PROGRAMMING AND ADVERTISING SALES TERMS OF THE SALE WEREN'T DISCLOSED ZEE TV IS TRANSMITTED VIA SATELLITE AND IS SEEN IN MORE THAN SEVEN MILLION HOMES OR 25 OF THE TOTAL TELEVISION HOUSEHOLDS IN INDIA NEWS CORP SAID NEWS CORP WHICH OWNS 636 OF STAR REPORTED REVENUE FOR THE YEAR ENDED JUNE 30 OF 75 BILLION ITS PROPERTIES INCLUDE NEWSPAPERS TELEVISION STATIONS THE FOX TELEVISION NETWORK AND THE TWENTIETH CENTURY FOX MOVIE STUDIO SINCE BUYING A CONTROLLING INTEREST IN STAR IN JULY NEWS CORP HAS EXPRESSED AN INTEREST IN EXPANDING ITS PROGRAMING THROUGHOUT ASIA 9312270078 931227 MANAGER'S JOURNAL GLOBAL EMPLOYEE OWNERSHIP MADE EASY BY BRIAN CAREY STOCK OPTIONS HAVE LONG BEEN REGARDED AS A COSTEFFECTIVE AND EASY WAY TO MAKE SHAREHOLDERS OUT OF EMPLOYEES WHILE THIS MAY CURRENTLY BE TRUE IN THE US STOCK OPTIONS HAVE NOT BEEN EFFECTIVE FOR CREATING EMPLOYEE OWNERSHIP IN US SUBSIDIARIES ABROAD THERE IS HOWEVER A RELATIVELY NEW GLOBAL STOCK PLAN DESIGN THAT PROVIDES BROADBASED EMPLOYEE OWNERSHIP THE LARGEST CAUSE FOR THE FAILURE OF STOCK OPTIONS ABROAD IS THE WIDESPREAD TENDENCY OF EMPLOYEES TO SELL THEIR SHARES DIRECTLY UPON EXERCISING THE OPTIONS AND WALK AWAY WITH THE PROFIT GAINED FROM AN INCREASE IN THE SHARE PRICE SINCE THE OPTION WAS GRANTED IN OTHER WORDS EMPLOYEES REGARD STOCK OPTIONS AS ANOTHER FORM OF CASH COMPENSATION NOT AS A WAY TO BECOME SHAREHOLDERS MOREOVER MANY OVERSEAS EMPLOYEES JUST CONSIDER THE EXERCISE PROCESS TOO COMPLICATED CONSIDER FOR EXAMPLE WHAT A MALAYSIAN OR ARGENTINIAN EMPLOYEE OF A US COMPANY MUST DO TO EXERCISE AN OPTION GRANT THE EMPLOYEE MUST GENERATE SUFFICIENT FUNDS TO EXERCISE PART OR ALL OF THE OPTIONS THE FUNDS MUST THEN BE CONVERTED INTO US DOLLARS OFTEN REQUIRING A COMMISSION FINALLY THE FUNDS MUST BE REMITTED TO THE US SINCE THAT IS WHERE THE OPTIONS WERE GRANTED AND THE SHARES ARE PURCHASED IN US DOLLARS FORWARDTHINKING MULTINATIONALS LIKE PROCTER & GAMBLE AND COLGATEPALMOLIVE HAVE DEVELOPED AN INNOVATIVE APPROACH TO ACHIEVING WIDESPREAD EMPLOYEE SHARE OWNERSHIP OUTSIDE THE US OFFER A MATCHED STOCK SAVINGS PLAN TO GLOBAL WORK FORCES THIS PLAN IS SIMILAR IN CONCEPT TO A 401K PLAN OFFERED IN THE US IN WHICH EMPLOYEES MAKE REGULAR EG SEMIMONTHLY CONTRIBUTIONS THROUGH PAYROLL DEDUCTIONS TO PURCHASE COMPANY STOCK AND A PORTION OF THEIR CONTRIBUTION IS MATCHED BY THE COMPANY IN A TYPICAL MATCHED STOCK SAVINGS PLAN EMPLOYEES CAN CONTRIBUTE UP TO 16 OF PAY THE FIRST 6 OF THEIR PAY IS OFTEN MATCHED AT 50 BY THE EMPLOYER WITH THE REMAINDER BEING UNMATCHED OF COURSE COMPANY MATCHES OF SMALLER OR LARGER PERCENTAGES ARE ALSO POSSIBLE THE SHARES ARE HELD IN A TRUST LOCATED IN A COUNTRY LIKE LUXEMBOURG THAT HAS FAVORABLE TAX LEGISLATION FOR INCOME GENERATED FROM THE TRUST THE GLOBAL MATCHED STOCK SAVINGS PLAN ACHIEVES MANAGEMENT'S GOAL OF MAKING EMPLOYEES SHAREHOLDERS AND BYPASSES THE PROBLEMS ASSOCIATED WITH STOCK OPTIONS EMPLOYEES IMMEDIATELY BECOME SHAREHOLDERS WITH THEIR FIRST CONTRIBUTION AND THE COMPANY MATCH THEY ALSO HAVE VOTING RIGHTS AND RECEIVE DIVIDENDS VIEWED AS A SAVINGS PLAN NOT ANOTHER FORM OF COMPENSATION EMPLOYEES SEE THEIR EFFORTS GO TOWARD BUYING SOMETHING IN THIS CASE OWNERSHIP IN THEIR COMPANY MOREOVER EMPLOYEES SEE THE INCREASE IN VALUE OF THEIR SAVINGS THROUGH PERIODIC STATEMENTS OF THEIR ACCOUNTS ESPECIALLY WITH THE REGULAR COMPANY MATCH UNLIKE STOCK OPTION PLANS WHICH OFTEN REQUIRE YEARS TO PRODUCE SHARE PRICE GROWTH SUFFICIENT ENOUGH TO BE WORTH EXERCISING IN FACT MANY EMPLOYEES MAY LEAVE A COMPANY BEFORE THE OPTION BECOMES SUFFICIENTLY ATTRACTIVE TO EXERCISE THE PLAN IS ALSO EASY TO UNDERSTAND THERE IS NOTHING FOREIGN ABOUT A SAVINGS PLAN REGARDLESS OF WHAT LANGUAGE AN EMPLOYEE SPEAKS EMPLOYEES AROUND THE WORLD ARE USED TO HAVING DEDUCTIONS MADE FROM THEIR PAY ON A REGULAR BASIS BE IT FOR SOCIAL SECURITY OR LIFE INSURANCE BY CONTRAST IN A STOCK OPTION PLAN UNTIL STOCK OPTIONS ARE EXERCISED EMPLOYEES RECEIVE NONE OF THE ADVANTAGES OF BEING SHAREHOLDERS DIVIDENDS AND VOTING RIGHTS AND SHOULD THE SHARE PRICE FALL BELOW THE GRANT PRICE AND REMAIN DEPRESSED MANAGEMENT COULD FACE A MOTIVATIONAL AND COMMUNICATIONS NIGHTMARE IN A MATCHED STOCK SAVINGS PLAN THE COMPANY REMOVES THE ADMINISTRATIVE BURDEN AND EXPENSE OF BUYING THE SHARES FOR THE EMPLOYEE LOCAL CURRENCIES ARE CONVERTED TO US DOLLARS AND THE SHARES ARE PURCHASED IN BULK BY THE TRUST ON BEHALF OF ALL THE EMPLOYEES AROUND THE WORLD ONCE A MONTH DIVIDENDS ARE ALSO AUTOMATICALLY REINVESTED ON THE EMPLOYEES' BEHALF MOST IMPORTANT FOR THE SPONSORING COMPANY THE MATCHED STOCK SAVINGS PLAN AS A WORLDWIDE PROGRAM TIES EMPLOYEES TOGETHER IN ONE PLAN REGARDLESS OF COUNTRY OR EMPLOYEE LEVEL THIS IS ESPECIALLY CRUCIAL TO ORGANIZATIONS WHERE OVERSEAS REVENUES ACCOUNT FOR AN INCREASING SHARE OF TOTAL EARNINGS OR WHERE THE PERCEPTION IS THAT THE US EMPLOYEES HAVE THE BEST BENEFITS MR CAREY IS AN INTERNATIONAL CONSULTANT BASED IN NEW YORK 9312270077 931227 CLOSED END FUNDS CLOSEDEND FUNDS SELL A LIMITED NUMBER OF SHARES AND INVEST THE PROCEEDS IN SECURITIES UNLIKE OPENENDED FUNDS CLOSEDENDS GENERALLY DO NOT BUY THEIR SHARES BACK FROM INVESTORS WHO WISH TO CASH IN THEIR HOLDINGS INSTEAD FUND SHARES TRADE ON A STOCK EXCHANGE THE FOLLOWING LIST PROVIDED BY LIPPER ANALYTICAL SERVICES SHOWS THE EXCHANGE WHERE EACH FUND TRADES A AMERICAN C CHICAGO NNYSE O NASDAQ T TORONTO Z DOES NOT TRADE ON AN EXCHANGE THE DATA ALSO INCLUDE THE FUND'S MOST RECENT NET ASSET VALUE ITS CLOSING SHARE PRICE ON THE DAY NAV WAS CALCULATED AND THE PERCENTAGE DIFFERENCE BETWEEN THE MARKET PRICE AND THE NAV OFTEN CALLED THE PREMIUM OR DISCOUNT FOR EQUITY FUNDS THE FINAL COLUMN PROVIDES 52WEEK RETURNS BASED ON MARKET PRICES PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS THE PAST 12 MONTHS' INCOME DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET PRICE FOOTNOTES APPEAR AFTER A FUND'S NAME A THE NAV AND MARKET PRICE ARE EX DIVIDEND B THE NAV IS FULLY DILUTED C NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF THURSDAY'S CLOSE D NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF WEDNESDAY'S CLOSE E NAV ASSUMES RIGHTS OFFERING IS FULLY SUBSCRIBED V NAV IS CONVERTED AT THE COMMERCIAL RAND RATE Y NAV AND MARKET PRICE ARE IN CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO UNUSUAL CIRCUMSTANCES EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT THE BOTTOM OF THIS LIST N/A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE OR NOT APPLICABLE 9312270076 931227 REVIEW & OUTLOOK EDITORIAL SECURITY CHECK WITH XEROX AND RJR NABISCO RECENTLY ANNOUNCING PLANS TO SHRINK BY 16000 WORKERS IT MAY SEEM BAD TASTE TO QUESTION WHETHER THIS IS REALLY THE AGE OF THE TERMINALLY SHRINKING CORPORATION WE THOUGHT WE'D ASK THOUGH BECAUSE THERE'S A TEMPTATION IN SOME QUARTERS TO USE THESE STORIES TO JUSTIFY A VAST EXPANSION OF WASHINGTON'S MANDATE REMEMBER THAT UNEMPLOYMENT HOVERS AROUND 64 HARDLY APOCALYPTIC THOUGH ANGST IS PALPABLE AMONG THE MIDDLE CLASS BILL CLINTON HAS PICKED UP ON THIS AND LASHED THE VARIED IMPULSES OF CLINTONOMICS TO THE THEME OF PERSONAL SECURITY HE ARGUES THAT THE DAYS OF A RELIABLE PRIVATESECTOR JOB ARE GONE FOREVER ERGO WASHINGTON MUST STEP INTO THE BREACH FELIX ROHATYN TAKES AN EVEN DIMMER VIEW WARNING IN A TALK LAST MONTH AT HARVARD THAT THE RELENTLESS DOWNSIZING OF AMERICAN BUSINESS COULD THREATEN THE POLITICAL ORDER THE INFLUENTIAL WALL STREET BANKER RECOMMENDS SPENDING 250 BILLION TO CREATE FIVE MILLION PUBLIC JOBS TO SOP UP THE ARMIES OF UNEMPLOYED DOWNSIZING HAS INDISPUTABLY BECOME THE VOGUE AMONG COMPANIES SUCH AS IBM AND SEARS THAT ARE HIGHLY VISIBLE BUT WE SUSPECT THE FEAR TALK IS OVERDONE IT WON'T PLEASE EVERYONE TO HEAR IT BUT THE UPHEAVALS FLOATING ACROSS OUR TV SCREENS TESTIFY MAINLY TO THE UNPRECEDENTED LENGTH OF THE 1980S RECOVERY IF THERE REALLY IS SOME EPOCHAL IRREVERSIBLE DOWNSIZING GOING ON THE MOST LIKELY PLACE TO SEEK EVIDENCE IS MANUFACTURING WHERE PRODUCTIVITY GROWTH HAS BEEN STRONGEST TO DATE THE MOST SYSTEMATIC WORK ON THIS SUBJECT HAS BEEN DONE BY JOHN HALTIWANGER AND STEPHEN DAVIS OF THE NATIONAL BUREAU OF ECONOMIC RESEARCH AND THEIR COLLEAGUE SCOTT SCHUH OF THE FEDERAL RESERVE USING THE LATEST COMPUTING THEY CRUNCH THROUGH 20 YEARS OF CENSUS BUREAU RECORDS DETAILING HIRING AND PRODUCTIVITY AT THOUSANDS OF PLANTS THE NOTION OF A RELENTLESS DOWNSIZING' IS JUST WRONG MR HALTIWANGER TELLS US ON THE CONTRARY JOB ROLLS AT A GREAT MANY WORKPLACES HAVE ACTUALLY BEEN GROWING SLIGHTLY SINCE THE MID1970S INTUITION MIGHT HAVE SUGGESTED AS MUCH IF THE PRODUCTIVITY OF YOUR WORKERS IS GOING UP IT MIGHT SEEM LIKE A GOOD IDEA TO HIRE MORE OF THEM AND WHERE 35 OF FACTORY WORKERS PUNCH IN RISING PRODUCTIVITY HAS INDEED MOVED EMPLOYERS TO EXPAND THEIR JOB ROSTERS ANOTHER 43 WORKED IN DOWNSIZERS WHERE JOBS SHRANK AS PRODUCTIVITY GREW THE REMAINING 22 WERE A MIXED BAG OF UPSIZING AND DOWNSIZING LOSERS FIRMS THAT FUMBLED THE BALL ON RAISING PRODUCTIVITY WHATEVER ELSE THEY MAY HAVE DONE RIGHT OR WRONG NORMAL STATISTICAL PRACTICE ATTEMPTS TO RELATE SUCH PATTERNS TO SOMETHING BIGGER LIKE TECHNOLOGICAL CHANGE AND GLOBAL COMPETITION IN WORDS OF REFRESHING MODESTY MR HALTIWANGER TELLS US AT THE END OF THE DAY THE OVERWHELMING EXPLANATORY VARIABLE IS THE IDIOSYNCRATIC COMPONENT THAT IS THERE'S NO SOUND BITE HERE FOR PONTIFICATING POLITICIANS WHAT THIS MEANS IS THAT WHETHER A PARTICULAR COMPANY GROWS OR SHRINKS DEPENDS ON WHETHER THE CEO IS A GENIUS OR A DOLT WHETHER THE CUSTOMER LOVES OR HATES THE PRODUCT AND OTHER FACTORS THAT WASHINGTON CAN'T PREDICT SO RATHER THAN RUNNING AROUND TRYING TO SPOT THE NEXT MEGATREND TO SUBSIDIZE OUR POLITICIANS WOULD DO BEST TO MAINTAIN A CLIMATE THAT ENCOURAGES JOBCREATING ENTREPRENEURS TO COME FORWARD AND TRY THEIR LUCK AND ALONG THE WAY CREATE JOBS MR HALTIWANGER AND HIS COLLEAGUES WERE ASTONISHED TO DISCOVER THAT FOR TWO DECADES THE JOB DESTRUCTION RATE IN MANUFACTURING HAS BEEN 10 AND EVEN HIGHER IN SERVICES SOMEHOW THOUGH ENOUGH NEW JOBS COME ALONG AND TOTAL EMPLOYMENT KEEPS RISING THAT PUTS SOME PERSPECTIVE AROUND THE LAYOFFS AT THE FORTUNE 500 TODAY MR HALTIWANGER ATTRIBUTES THE HIGHLY VISIBLE TURMOIL AT THE BIGGEST MOST GLAMOROUS COMPANIES TO PENTUP RESTRUCTURING AFTER AN UNUSUALLY LONG PERIOD OF GROWTH IN BOOM TIMES MANAGERS CONCENTRATE ON GROWING THE BUSINESS THEY OFTEN SAVE UP THE DISRUPTIVE REENGINEERING EXERCISES FOR SLACKER MOMENTS WHEN THE COST OF TAKING A TIMEOUT IS CHEAPER THIS ACTIVITY GETS ALL THE NEWS ON THE OTHER HAND COMPANIES THAT ARE DESTINED TO CREATE THOUSANDS OF JOBS ARE LESSER NEWS SHAGGY UNKNOWNS LIKE STEVE JOBS OR BILL GATES DIDN'T GET AIR TIME TO PROCLAIM THAT SOMEDAY APPLE AND MICROSOFT WOULD EMPLOY ARMIES OF WORKERS IN TRUTH THE FOLKS RAISING THE ALARM ABOUT DOWNSIZING SOUND A BIT LIKE THE 19TH CENTURY LUDDITES WHO HELD THAT TECHNOLOGY WOULD REPEAL THE LAW OF SCARCITY AND LEAVE PEOPLE WITH NOTHING TO DO HISTORY INSTRUCTS THAT HUMAN WANTS ALWAYS PROVE LIMITLESS MOST IF NOT ALL DISPLACED WORKERS EVENTUALLY FIND THEMSELVES BUSY AGAIN THERE'S NO NEED TO SUPPOSE THAT PEOPLE TEMPORARILY ADRIFT IN TODAY'S RESTRUCTURINGS ARE SOMETHING PERMANENT THAT REQUIRES A PERMANENT EXPANSION OF GOVERNMENT TO ENSURE SECURITY FOR ALL THEIR SECURITY RHETORIC THE MOST USEFUL THING THE CLINTONITES COULD DO IS TO STOP THREATENING EMPLOYERS WITH AN AVALANCHE OF NEW PAYROLL TAXES SO THAT THE GOVERNMENT CAN CALL THE SHOTS ON HEALTH CARE AND JOB TRAINING BUT THE ADMINISTRATION'S ECONOMIC MODEL REQUIRES THAT NEW AND HIGHER TAX CLOUDS HANG PERMANENTLY OVER THE WORKPLACE HOW THIS IS SUPPOSED TO MAKE WORKERS FEEL MORE SECURE WE'LL NEVER KNOW 9312270075 931227 RETAILING SHOPPERS SPREAD CHRISTMAS CHEER BUT NOT EVERYWHERE A WALL STREET JOURNAL NEWS ROUNDUP A FLURRY OF LASTMINUTE SHOPPING CAPPED AN UNREMARKABLE HOLIDAY SEASON THAT MET EXPECTATIONS FOR RETAILERS OVERALL BUT DISTRIBUTED ITS GIFTS UNEVENLY CONSUMERS ZEROED IN ON PRACTICAL HOMEORIENTED GIFTS AND MARKEDDOWN ITEMS GIVING MANY ELECTRONICS STORES A BLOCKBUSTER SEASON AND LEAVING MANY SELLERS OF FASHIONABLE CLOTHING WITH THE FEELING THAT SANTA FORGOT THEM THIS YEAR SALES PICKED UP LAST WEEK AFTER A POSTTHANKSGIVING LULL BUT ONLY WITH THE HELP OF HEAVIERTHANUSUAL DISCOUNTING AND PROMOTIONS WHICH PUT PRESSURE ON SOME STORE PROFIT MARGINS FOR MOST RETAILERS SALES GAINS THIS HOLIDAY SEASON LAGGED BEHIND A ROBUST 1992 WHEN OPTIMISM IN THE WAKE OF PRESIDENT CLINTON'S ELECTION GAVE A SHOT OF ADRENALINE TO SALES ANALYSTS ESTIMATE THAT IN STORES OPEN AT LEAST A YEAR SALES FOR THE 1993 THANKSGIVINGTOCHRISTMAS PERIOD ENDED UP BETWEEN 4 AND 55 HIGHER THAN LAST YEAR COMPARED WITH 1992'S INCREASE OF AT LEAST 8 OVER 1991 THIS YEAR'S NUMBERS WERE HELPED SLIGHTLY BY AN EXTRA SHOPPING DAY LAST WEEK COMPARED WITH THE WEEK BEFORE CHRISTMAS 1992 WHICH FELL ON A FRIDAY MERCHANTS AND ANALYSTS PROCLAIM THAT A NEW SHOPPER UNAFRAID OF BUYING BUT INSISTING ON VALUE IS DOMINATING SPENDING PRACTICAL IS IN FRIVOLOUS IS OUT THE EMPHASIS THIS TIME AROUND WAS ON WHAT WE CALL INVESTMENT' PURCHASES SAID KURT BARNARD A RETAILING CONSULTANT AND PUBLISHER OF RETAIL MARKETING REPORT IN ADDITION RECENT INCREASES IN HOME SALES AND CONSTRUCTION HELPED RAISE THE PROFILE OF HOMEORIENTED GOODS INSTEAD OF CLOTHING THAT COULD WEAR OUT IN A YEAR OR TWO OR GO OUT OF FASHION EVEN FASTER PEOPLE BOUGHT APPLIANCES HOME FURNISHINGS POWER TOOLS ELECTRONICS AND PERSONAL COMPUTERS WE SAW A CLEAR FOCUS WITH CONSUMERS ON PRACTICALITY AND HOME SAID JOHN H COSTELLO SENIOR EXECUTIVE VICE PRESIDENT AT SEARS ROEBUCK & CO SERIOUSMINDED SHOPPING APPEARED TO HAVE HELPED CAR SALES AS CHRISTMAS APPROACHED WHICH MAY HAVE HURT HOLIDAY RETAIL SALES SAID SANDRA SHABER AN ECONOMIST AT WEFA GROUP IN BALA CYNWYD PA WHILE MANY CONSUMERS BURNED IN CHRISTMASES PAST BY HIGHINTEREST DEBT SAID THEY WERE BEING CAREFUL WITH THEIR CREDIT CARDS THE PROPORTION OF SALES ON CREDIT INCREASED A SIGN OF GREATER CONSUMER CONFIDENCE RETAIL SPENDING ON VISA CARDS BETWEEN THANKSGIVING AND CHRISTMAS SURGED NEARLY 32 FROM A YEAR EARLIER BUT THE VALUE OF THE AVERAGE TRANSACTION FELL 23 TO 72 ACCORDING TO VISA'S HOLIDAY SPENDTRAK RETAIL SALES CLEARED THROUGH THE MASTERCARD NETWORK IN THE SAME PERIOD WERE UP 24 ACCORDING TO MASTERCARD'S SMART MONEY WATCH LOOKING AHEAD TO NEXT YEAR THE OUTLOOK IS MIXED MANY OF THOSE SELLING BIGTICKET GOODS FOR THE HOME EXPECT THE POSITIVE HOLIDAY SALES TREND TO CONTINUE ESPECIALLY IF INTEREST RATES REMAIN LOW BUT SAKS FIFTH AVENUE'S CHAIRMAN PHIL MILLER WHILE PREDICTING SALES INCREASES AT SAKS NEXT YEAR WORRIES THAT A TAX INCREASE FOR THE WEALTHY COULD SUPPRESS SALES IN THE FIRST QUARTER THERE IS AN IMPROVED ATMOSPHERE HE SAID BUT IT'S STILL FRAGILE ALTHOUGH CUTTING PRICES AS CHRISTMAS NEARS HAS BECOME BUSINESS AS USUAL MANY RETAILERS THIS YEAR DISCOUNTED MORE THAN EXPECTED ACCORDING TO ANALYSTS AND STORE EXECUTIVES IN THE PAST 10 DAYS THE SALE SIGNS REALLY WENT UP IN FULL FORCE SAID MR BARNARD THE RETAIL MARKETING REPORT PUBLISHER ADDED KENNETH MACKE CHAIRMAN OF DAYTON HUDSON CORP THIS CHRISTMAS WAS THE HIGHEST PERCENTAGE OF PROMOTIONAL BUSINESS THAT I'VE SEEN IN MY CAREER THE PRICECUTTING DIDN'T ALWAYS SUCCEED IN MOVING INVENTORY ESPECIALLY FOR CLOTHING STORES THIS MEANS THERE WILL BE GREAT AFTERCHRISTMAS SALES FOR APPAREL SAID CARL STEIDTMANN ECONOMIST AT THE MANAGEMENT HORIZONS CONSULTING UNIT OF PRICE WATERHOUSE GOODY'S FAMILY CLOTHING INC A KNOXVILLE TENN CASUALWEAR CHAIN THAT POSTED FLAT CHRISTMAS SALES GAVE AWAY NEARLY 100000 IN PRIZES INCLUDING A SATURN CAR TO LURE SHOPPERS GOODY'S ALSO HELD A CHRISTMASWEEK SALE USING 25OFF COUPONS WE'VE HAD TO BE MORE CREATIVE AND MORE PROMOTIONAL THAN LAST YEAR SAID ROGER JENKINS GOODY'S PRESIDENT ELECTRONICS RETAILER TWEETER ETC A NEW ENGLAND ELECTRONICS RETAILER PROMISED TO AUTOMATICALLY MAIL CUSTOMERS A REFUND CHECK ANYTIME A COMPETITOR ADVERTISED A LOWER PRICE WITHIN 30 DAYS OF A PURCHASE BUT NOT EVERYONE FELT COMPELLED TO DISCOUNT REX STORES CORP A DAYTON OHIO ELECTRONICS CHAIN WITH 133 STORES IN 23 STATES HAD A 5 SAMESTORE SALES GAIN AND ITS BEST OPERATING PROFIT MARGIN IN YEARS SAID CHAIRMAN STUART ROSE WITH STORE TRAFFIC HIGH REX CUT BACK ON ADVERTISING I'D RATHER CUT ADVERTISING COSTS THAN CUT PRICES MR ROSE SAID SHARPER IMAGE CORP A SAN FRANCISCOBASED SELLER OF UPSCALE GIFTS AND GADGETS VIA MAIL AND IN 75 STORES SAID IT INCREASED SAMESTORE SALES WITHOUT DISCOUNTING AND BRENDLE'S STORES INC A DISCOUNT CHAIN BASED IN ELKIN NC LIMITED ITS MARKDOWNS TO SINGLE ITEMS RATHER THAN SLASHING PRICES ON ENTIRE CATEGORIES SHOPPERS BOUGHT HEAVILY AT ELECTRONICS STORES MS SHABER AT WEFA GROUP ESTIMATES SAMESTORE SALES GAINS AT APPLIANCE AND ELECTRONICS STORES WERE IN THE DOUBLE DIGITS LAST YEAR WE SOLD A LOT OF 179 CD PLAYERS THIS YEAR WE SOLD MORE 249 TO 400 SYSTEMS SAID JEFFREY STONE TWEETER'S PRESIDENT GREATER FRUGALITY MEANWHILE BENEFITED DISCOUNT CHAINS SALES THIS MONTH HAVE BEEN GREAT SAID BILL ELOVITZ PRESIDENT OF BUILDING 19 INC A 12STORE CUTPRICE CHAIN IN NEW ENGLAND AT MANY DEPARTMENT STORES SALES OF HOMERELATED GOODS MORE THAN OFFSET WEAK CLOTHING SALES SOME STORES WERE HELPED FURTHER BY INEXPENSIVE OR MODERATELY PRICED BASIC CLOTHING WHICH SOLD BETTER THAN HIGHEND APPAREL FOR THE FIRST TIME IN YEARS DAYTON HUDSON'S DEPARTMENT STORES DID ABOUT AS WELL AS ITS DISCOUNT STORES MR COSTELLO OF SEARS SAID ITS SAMESTORE SALES INCREASE WAS IN THE MIDTOHIGH SINGLE DIGITS ABOUT WHAT THE COMPANY EXPECTED JEWELRY STORES REPORTED STRONG BUSINESS HELPED BY A STRONGERTHANEXPECTED FINISH DALLASBASED ZALE CORP THE COUNTRY'S LARGEST JEWELRY CHAIN HAD SAMESTORE SALES GAINS IN THE MIDDLE SINGLE DIGITS SAID ITS INTERIM CHIEF EXECUTIVE OFFICER ANDREAS LUDWIG I WAS QUITE PLEASED REEDS JEWELERS INC A 70STORE CHAIN BASED IN WILMINGTON NC HAD SAMESTORE SALES GAINS OF ROUGHLY 14 SAID ALAN M ZIMMER PRESIDENT AND CHIEF EXECUTIVE MAIER & BERKELE A JEWELER WITH FIVE STORES IN THE ATLANTA AREA ALSO HAD DOUBLEDIGIT GROWTH SOME SPECIALTYAPPAREL RETAILERS SAW THEIR SAMESTORE SALES DECLINE PARTLY BECAUSE OF THE LACK OF A HOT NEW FASHION TREND ANALYSTS SAID HOWEVER DEMAND WAS STRONG FOR ACCESSORIES THAT CAN STRETCH A WARDROBE AT CLAIRE'S STORES INC A WOMEN'SACCESSORIES CHAIN SAMESTORE SALES DURING CHRISTMAS WEEK WERE UP 8 FROM A YEAR EARLIER SAID ROWLAND SCHAEFER CHAIRMAN AND PRESIDENT SAKS FIFTH AVENUE ALSO BEAT THE DOWN TREND FOR SPECIALTY RETAILERS THE CHAIN'S SAMESTORE SALES JUMPED 11 HELPED BY ROBUST SALES OF FRAGRANCES FOR MEN AND WOMEN WOMEN'S EVENING DRESSES AND SPORTSWEAR FARED POORLY TOY STORES DID BETTER THAN AVERAGE AS DID CATALOG COMPANIES ANALYSTS SAID THOUGH CREDITCARD USE WAS UP IN ALL SEGMENTS ONLY DISCOUNT STORES AND MAIL AND PHONE ORDERS SHOWED INCREASES IN THE VALUE OF THE AVERAGE TRANSACTION ACCORDING TO VISA ANALYSTS SAID RETAILERS DID THE BEST IN THE SOUTHEAST FOLLOWED BY THE MIDWEST THE SOUTHWEST AND THE ROCKY MOUNTAIN STATES STRUGGLING WERE CALIFORNIA THE PACIFIC NORTHWEST THE NEW YORKTOWASHINGTON CORRIDOR AND NEW ENGLAND DESPITE CALIFORNIA'S WEAKNESS SEARS SAID SALES LAST WEEK AT ITS STORES THERE WERE STRONGER THAN EXPECTED SHARPER IMAGE SAID ITS HOTTEST STORES WERE IN HOUSTON BEVERLY HILLS AND ATLANTA IN DEMAND WAS THE HOME ALONE 2 TALKBOY A SMALL TAPE RECORDER TERESA NEALEY OF STONE MOUNTAIN GA TRIED IN VAIN TO FIND ONE TOYS R' US SAID THEY'D TRY BUT THEY COULDN'T PROMISE ANYTHING SHE SAID EVERYONE ELSE SAID FORGET IT ALSO HARD TO FIND WAS THE MIGHTY MORPHIN POWER RANGER DAYTON HUDSON'S TARGET DISCOUNT CHAIN SOLD OUT OF THE 8INCHTALL ACTION FIGURES WHICH SELL FOR 999 A MINNEAPOLIS RADIO STATION SUBSEQUENTLY AUCTIONED ONE OFF FOR 100 ZALE REPORTED HEAVY DEMAND FOR DIAMOND BRACELETS EVEN THOUGH IT FELT COMPELLED TO SLASH PRICES IN HALF TO CAPTURE BUYERS THERE WAS BASICALLY A DIAMONDBRACELET WAR GOING ON OUT THERE SAID ZALE'S MR LUDWIG THE RESULT BRACELET SALES GAINS IN THE DOUBLE DIGITS AND TROUBLES KEEPING THEM IN STOCK MAIER & BERKELE SOLD OUT OF ROLEX WATCH MODELS LEATHER BOMBER JACKETS WERE HOT SELLERS AT GOODY'S AT DAYTON HUDSON HOLIDAYMOTIF ITEMS INCLUDING WRISTWATCHES THAT PLAY CHRISTMAS CAROLS HAD THE STRONGEST SALES IN YEARS MONTBLANC'S NEW HIGHLIGHTER PEN SELLING FOR 165 TO 180 WAS A SURPRISE HIT 9312270074 931227 SEC SEEKING DATA ON HALT IN QVC TRADING INVESTORS COULDN'T VALUE ITS BID FOR PARAMOUNT AFTER BOARD'S APPROVAL BY RANDALL SMITH AND CHRISTI HARLAN STAFF REPORTERS OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION HAS ASKED FOR INFORMATION ABOUT LAST WEEK'S TRADING IN QVC NETWORK INC SHARES JUST BEFORE PARAMOUNT COMMUNICATIONS INC ANNOUNCED THAT IT HAD ENDORSED THE HOMESHOPPING CHANNEL'S ONCEHOSTILE BID ACCORDING TO ONE PERSON FAMILIAR WITH THE SEC'S REQUEST QVC SHARES DIDN'T RESUME TRADING LAST WEDNESDAY ON THE NASDAQ STOCK MARKET AFTER TRADING WAS HALTED FOLLOWING THE FIRST REPORTS THAT PARAMOUNT'S BOARD HAD AGREED TO ADVISE SHAREHOLDERS TO ACCEPT QVC'S OFFER FOR PARAMOUNT OVER A RIVAL BID BY VIACOM INC AS A RESULT WHEN PARAMOUNT SHARES REOPENED FOR TRADING LATER THAT DAY INVESTORS DIDN'T HAVE ENOUGH INFORMATION TO VALUE QVC'S CASHANDSTOCK BID FOR PARAMOUNT CURRENTLY VALUED AT ABOUT 98 BILLION OR 8188 A SHARE INFORMATION ABOUT THE PRICE OF EACH BIDDER'S STOCK IS IMPORTANT TO INVESTORS' ABILITY TO VALUE THEIR CASHANDSTOCK BIDS FOR PARAMOUNT AS THE THREEMONTHLONG CONTEST BETWEEN QVC AND VIACOM TWO CABLE TV COMPANIES ENTERS THE HOMESTRETCH WITH ONLY ABOUT 250 MILLION SEPARATING THE VALUE OF THEIR BIDS ALTHOUGH THE QUESTIONS ABOUT THE QVC STOCK TRADING DON'T APPEAR TO HAVE HAD MORE THAN A MOMENTARY IMPACT ON THE CONTEST THEY ARE THE LATEST CONTROVERSY TO ERUPT OVER THE STOCKS OF THE TWO BIDDERS SEC CHAIRMAN ARTHUR LEVITT ASKED NASDAQ FOR INFORMATION ABOUT THE QVC TRADING HALT ACCORDING TO THE PERSON FAMILIAR WITH THE SEC REQUEST A SPOKESMAN FOR NASDAQ SAID WEDNESDAY THE STOCK DIDN'T REOPEN BECAUSE THE MARKET DIDN'T RECEIVE A RESPONSE TO ITS INQUIRIES FROM QVC THE SAME NASDAQ SPOKESMAN SAID YESTERDAY THAT MR LEVITT HADN'T CONTACTED NASDAQ PRESIDENT JOSEPH HARDIMANN ABOUT THE MATTER AS OF THURSDAY BUT THE SPOKESMAN SAID HE DIDN'T KNOW WHETHER OR NOT MR LEVITT OR SOME OTHER SEC OFFICIAL MIGHT HAVE CONTACTED OTHERS AT NASDAQ SOME TRADERS SAID THAT BY NOT RESPONDING TO NASDAQ MORE PROMPTLY QVC MIGHT HAVE BEEN HOPING TO MODERATE THE DECLINE IN ITS SHARES THAT WAS EXPECTED ONCE PARAMOUNT ANNOUNCED THAT IT HAD ENDORSED THE QVC BID A QVC SPOKESMAN SAID QVC HAD BEEN EXPECTING AN ANNOUNCEMENT FROM PARAMOUNT AT ANY MOMENT THROUGHOUT THE COURSE OF THE TRADING HALT BECAUSE BOTH QVC AND VIACOM ARE OFFERING CASH AND STOCK TO ACQUIRE PARAMOUNT THEIR STOCKS RISE AND FALL DAILY BASED ON THEIR CHANCES OF COMPLETING THE ACQUISITION THE MORE LIKELY A COMPANY IS TO WIN THE MORE ITS STOCK TENDS TO FALL AS INVESTORS ANTICIPATE THAT ITS PERSHARE EARNINGS WILL BE DILUTED BY THE MILLIONS OF SHARES IT WILL HAVE TO ISSUE TO BUY PARAMOUNT QVC'S STOCK SLIPPED 175 TO 4025 A SHARE ON WEDNESDAY IN THE FEW MINUTES BETWEEN THE FIRST UNCONFIRMED REPORTS AT ABOUT 1240 PM EST THAT PARAMOUNT'S BOARD HAD ENDORSED THE NEW QVC OFFER AND THE TIME TRADING WAS HALTED IN ALL THREE STOCKS PENDING AN ANNOUNCEMENT BUT PARAMOUNT DIDN'T MAKE AN ANNOUNCEMENT UNTIL AFTER THE MARKET CLOSED BECAUSE THE COMPANY WAS STILL HAGGLING WITH BOTH VIACOM AND QVC OVER BIDDING PROCEDURES THAT WILL GOVERN THE FINAL ROUND OF BIDDING BOTH PARAMOUNT WHICH TRADES ON THE NEW YORK STOCK EXCHANGE AND VIACOM WHICH TRADES ON THE AMERICAN STOCK EXCHANGE EVENTUALLY REOPENED FOR TRADING BETWEEN 3 PM AND 4 PM WEDNESDAY DESPITE THE LACK OF ANY ANNOUNCEMENT VIACOM ITSELF HAS HAD TO COUNTER CRITICISM OF TRADING IN ITS OWN STOCK AT TIMES BEFORE AND DURING THE PARAMOUNT TAKEOVER CONTEST VIACOM'S STOCK HAS BEEN SUBJECT TO WEEKS OF HEAVY BUYING BY ITS CHAIRMAN SUMNER REDSTONE AS WELL AS WMS INDUSTRIES INC A CHICAGO COMPANY 249OWNED BY MR REDSTONE TRADERS DON'T REGARD THE QUESTIONS ABOUT QVC STOCK TRADING AS SERIOUSLY AS THOSE ABOUT VIACOM'S BECAUSE IT ONLY INVOLVED LACK OF TRADING FOR A FEW HOURS AS OPPOSED TO HEAVY BUYING OVER SEVERAL WEEKS INDEED QVC ONLY FELL ANOTHER 25 CENTS WHEN IT RESUMED TRADING ON THURSDAY ON THURSDAY PARAMOUNT STOCK FELL 1 A SHARE TO 78625 BASED PARTLY ON SOME NEWS ACCOUNTS SUGGESTING THE CONTEST MAY BE NEARING AN END BECAUSE VIACOM MAY NOT MAKE A HIGHER BID SOME TAKEOVER STRATEGISTS BELIEVE VIACOM IS HANGING BACK WITHOUT MAKING A NEW BID IMMEDIATELY IN ORDER TO ENCOURAGE THE IDEA THAT QVC IS THE WINNER WHICH REDUCES THE VALUE OF QVC'S BID AS ITS STOCK DECLINES AND BOOSTS THE VALUE OF VIACOM'S BID THE GAP BETWEEN THE TWO BIDS HAS BEEN NARROWING ON THURSDAY VIACOM CLASS B SHARES ROSE 75 CENTS TO 4675 IN AMERICAN STOCK EXCHANGE TRADING WHILE QVC STOCK FELL 25 CENTS TO 40 A SHARE IN NASDAQ STOCK MARKET TRADING VIACOM'S BID IS NOW VALUED AT ABOUT 96 BILLION OR 7973 A SHARE THE DEADLINE FOR A NEW VIACOM BID IS JAN 7 WHEN QVC'S CURRENT OFFER EXPIRES BUT EVEN IF QVC WINS 51 OF PARAMOUNT'S STOCK WITH ITS CURRENT OFFER IT MUST KEEP ITS OFFER OPEN ANOTHER 10 BUSINESS DAYS AFTER JAN 7 SO THAT PARAMOUNT SHAREHOLDERS WHO TENDERED THEIR STOCK TO VIACOM COULD SWITCH TO QVC IF VIACOM MAKES A NEW OFFER TOPPING QVC'S THE CONTEST COULD EASILY STRETCH INTO FEBRUARY JOHNNIE L ROBERTS CONTRIBUTED TO THIS ARTICLE 9312270072 931227 BUSINESS BRIEF UNILEVER NV BID OF 245 A SHARE PLANNED FOR ORTIZMIKO LISTED STOCK ANGLODUTCH CONSUMER PRODUCTS COMPANY UNILEVER NV SAID IT WILL BID AROUND 1420 FRENCH FRANCS 245 A SHARE FOR THE 15 OF THE SHARES OF FROZEN FOODS AND ICE CREAM COMPANY ORTIZMIKO LISTED ON THE FRENCH STOCK EXCHANGE THE PUBLIC BID FOLLOWS LAST MONDAY'S ANNOUNCEMENT THAT UNILEVER HAS AGREED TO TAKE OVER ORTIZMIKO MAKING UNILEVER FRANCE'S LARGEST ICE CREAM COMPANY THE ACQUISITION PRICE INCLUDING THE 15 IN ORTIZMIKO WILL AMOUNT TO APPROXIMATELY 19 BILLION FRANCS UNDER THE DEAL UNILEVER WILL BUY 75 OF FRANCE'S SAFRAL SA WHICH HOLDS 85 OF ORTIZMIKO'S SHARES FROM THE ORTIZ FAMILY HOLDING COMPANY THE REMAINING 25 OF SAFRAL WILL STAY IN HANDS OF THE FAMILY THE MOST RECENT CLOSING PRICE OF THE ORTIZMIKO SHARES ON DEC 17 WAS 1209 FRANCS A SPOKESMAN FOR UNILEVER SAID TRADING IN THE SHARES WAS SUSPENDED AHEAD OF THE ANNOUNCEMENT BY UNILEVER AND IT WON'T RESUME UNTIL TODAY 9312270071 931227 BUSINESS BRIEF AUSTRALIAN MUTUAL PROVIDENT SOCIETY INSURER PLANS AN INVESTMENT IN INDONESIA'S PANIN LIFE AUSTRALIAN MUTUAL PROVIDENT SOCIETY AUSTRALIA'S BIGGEST INSURANCE AND INVESTMENT INSTITUTION PLANS TO TAP THE EMERGING CONSUMER DEMAND FOR INSURANCE IN ASIA BY INVESTING IN AN INDONESIAN LIFE INSURANCE CONCERN AMP SAID IT WILL INVEST MORE THAN 100 MILLION AUSTRALIAN DOLLARS US68 MILLION TO BUY 40 OF PANIN LIFE INSURANCE CO ONE OF THE LARGEST LIFE INSURANCE OPERATIONS IN TERMS OF ASSETS IN INDONESIA AND TO ESTABLISH A JOINT VENTURE WITH PANIN LIFE A UNIT OF PANIN BANK AS PART OF THE AGREEMENT PANIN LIFE AND AMP WILL FORM A JOINT VENTURE KNOWN AS AMP PAN INDONESIA LIFE IN WHICH AMP WILL HAVE A 58 STAKE AND PANIN LIFE 42 THE VENTURE WILL START OPERATING IN EARLY 1994 AND INITIALLY WILL CONCENTRATE ON SELLING LIFE INSURANCE LATER IT MIGHT EXPAND INTO FUND MANAGEMENT IN INDONESIA AN ADVISER TO AMP SAID 9312270070 931227 LAW LEGAL BEAT CALIFORNIA RULING MAKES IT HARDER TO SUE AN OWNER OF A CRIME SCENE BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL IN A SURPRISE RETREAT FROM A LANDMARK 1985 RULING THE CALIFORNIA SUPREME COURT HAS MADE IT TOUGHER FOR A CRIME VICTIM TO SUE A BUSINESS CLAIMING ITS PREMISES ARE UNSAFE WITH THE NUMBER OF SUCH LAWSUITS ON THE RISE COURTS IN ALMOST HALF THE STATES HAVE SET LEGAL STANDARDS THAT ENCOURAGE SUCH SUITS JUST AS CALIFORNIA DID EIGHT YEARS AGO THAT EARLIER CALIFORNIA RULING HAS BEEN CITED FREQUENTLY BY OTHER STATES CALIFORNIA WAS THE GRANDDADDY OF THEM ALL SAID SCOTT JACOBS EDITOR OF THE NEWSLETTER MEALEY'S LITIGATION REPORT PREMISES LIABILITY THUS CALIFORNIA'S CHANGE OF DIRECTION MIGHT BE PARTICULARLY INFLUENTIAL NATIONALLY MR JACOBS SAID DEFENSE LAWYERS FOR PROPERTY OWNERS HAILED THE RULING AND AGREED THAT OTHER STATES MIGHT FOLLOW THE LEAD OF CALIFORNIA'S INFLUENTIAL COURT OWNERS OF APARTMENT CONDOMINIUM AND HOTEL BUILDINGS ARE THE MOST FREQUENT TARGETS OF SUCH CRIMERELATED SUITS WHICH OFTEN RESULT IN MILLIONDOLLAR JURY AWARDS IF RAPE OR MURDER IS INVOLVED AT ISSUE IS THE EVIDENCE THAT COURTS CONSIDER IN SUCH CASES UNDER THE TRADITIONAL STANDARD STILL USED IN MANY STATES MOST STRONGLY IN NORTH CAROLINA AND TENNESSEE COMPANIES ARE LIABLE FOR CRIMES SIMILAR TO PREVIOUS ONES ON THEIR PROPERTY THE IDEA IS THAT IF OWNERS HAVE REASON TO KNOW OF A PARTICULAR DANGER THEY ARE RESPONSIBLE FOR MAKING CONDITIONS SAFER FOR INSTANCE AN APARTMENTBUILDING OWNER COULD BE HELD LIABLE IN A RAPE CASE IF TWO PREVIOUS RAPES TOOK PLACE THERE HOWEVER EVIDENCE OF DISSIMILAR CRIMES WOULDN'T BE ADMISSIBLE IN COURT UNDER THE MORE PROVICTIM STANDARD USED IN CALIFORNIA PRIOR TO THE RECENT RULING EVIDENCE OF ALL PREVIOUS CRIMES WHETHER SIMILAR OR DISSIMILAR COULD BE CONSIDERED BY A JURY AS IT DECIDED WHETHER A PROPERTY OWNER SHOULD HAVE KNOWN OF THE DANGER ADDITIONAL FACTORS SUCH AS LIGHTING AND OTHER SAFETY FEATURES ALSO COULD BE CONSIDERED COURTS APPLYING THIS STANDARD REASON THAT THE FIRST VICTIM OF A PARTICULAR KIND OF CRIME SHOULDN'T BE DENIED RECOURSE MERELY BECAUSE NO ANALOGOUS CRIME OCCURRED PREVIOUSLY BUT WITH THE RECENT RULING CALIFORNIA'S HIGH COURT IS SUGGESTING SUCH AN APPROACH IS NO LONGER PRACTICAL FOR ONE THING THE COURT SAID THESE DAYS ALMOST EVERY PROPERTY HAS BEEN THE SITE OF ALL SORTS OF CRIMES UNFORTUNATELY RANDOM VIOLENT CRIME IS ENDEMIC IN TODAY'S SOCIETY IT SAID IN A 61 RULING ON DEC 16 IT IS DIFFICULT IF NOT IMPOSSIBLE TO ENVISION ANY LOCALE OPEN TO THE PUBLIC WHERE THE OCCURRENCE OF VIOLENT CRIME SEEMS IMPROBABLE THE COURT STOPPED SHORT OF EXPLICITLY REVERSING ITS PREVIOUS DECISION COMMONLY KNOWN AS THE ISAACS CASE BUT THE COURT WHICH SINCE ISAACS HAS BECOME DOMINATED BY MORE CONSERVATIVE JURISTS SUGGESTED THE EARLIER RULING WAS MISUNDERSTOOD BY LOWER COURTS AND BY ATTORNEYS IN THE RECENT CASE INVOLVING A RAPE AT A SAN DIEGO SHOPPING CENTER THE VICTIM ARGUED THAT THE CENTER SHOULD HAVE HIRED SECURITY GUARDS THE HIGH COURT SAID IN ITS RULING THAT UNDER MOST CIRCUMSTANCES BUSINESS OWNERS HAVE NO DUTY TO HIRE SECURITY GUARDS BECAUSE GUARDS ARE A SIGNIFICANT FINANCIAL BURDEN COURTS IN OTHER STATES HAVE RULED SIMILARLY I REALLY THINK IT'S A COMMONSENSE RESULT THEY'RE REACHING SAID DONALD A VAUGHN A SAN DIEGO ATTORNEY FOR THE DEFENDANT IN THE HIGHCOURT CASE PACIFIC PLAZA SHOPPING CENTER I THINK IT'S IMPORTANT TO LOOK AT WHO'S REALLY TO BLAME HERE IS IT THE CRIMINALS OR IS IT THE PERSON WHO HAPPENS TO OWN THE PROPERTY ON WHICH THE CRIME IS COMMITTED HOWEVER COREY L GORDON A MINNEAPOLIS ATTORNEY WHO COHEADS THE PREMISESLIABILITY GROUP OF THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA DISAGREED WITH LAWYERS WHO SAY THE RULING EFFECTIVELY NULLIFIES ISAACS MR GORDON SAID THE RULING COVERS ONLY LIABILITY IN CONNECTION WITH SECURITY GUARDS ISAACS IS STILL GOOD LAW JUST SLIGHTLY MODIFIED HE SAID THE RESOLUTION TRUST CORP HAD THE AUTHORITY TO REPUDIATE 29 BILLION OF ZEROCOUPON BONDS OF THE DEFUNCT FRANKLIN SAVINGS ASSOCIATION A FEDERAL JUDGE RULED JUDGE PIERRE N LEVAL IN NEW YORK ALSO SAID THE REGULATORY BODY MUST PAY BONDHOLDERS THE FAIR MARKET VALUE OF BONDS IT REPUDIATED LAST YEAR JUDGE LEVAL RULED THAT A PARTICULAR RTC OFFICIAL LACKED THE AUTHORITY TO REPUDIATE THE BONDS OF THE THRIFT INSTITUTION WHICH FAILED IN FEBRUARY 1990 THE CURRENT ACTION WAS BROUGHT AFTER RTC OFFICIALS WHO DID HAVE THE AUTHORITY REPUDIATED THE BONDS A SECOND TIME IN SEPTEMBER 1992 THE RTC CONTENDED IT HAD THE RIGHT TO BACK OUT OF THE BONDS BECAUSE THEY WOULD BE BURDENSOME TO THE FAILED THRIFT AND JUDGE LEVAL AGREED HE ALSO RULED THAT THE BONDS' MARKET VALUE AS DETERMINED BY EXPERTS IS THE PROPER MEASURE OF DAMAGES THESE BONDS ARE MARKETABLE SECURITIES THEY HAVE AN EASILY ASCERTAINED MARKET VALUE A VALUE AT WHICH THEY COULD BE BOUGHT OR SOLD AT A GIVEN TIME THE JUDGE WROTE EMPLOYEES RETIREMENT SYSTEM OF ALABAMA ET AL VS RTC 92CIV A GROUP OF VIRGINIA VOTERS FILED A LAWSUIT CHALLENGING THE CONSTITUTIONALITY OF SENATE CANDIDATES' ACCEPTING CAMPAIGN CONTRIBUTIONS FROM OUTOFSTATE SOURCES THE SUIT FILED LAST WEEK IN ALEXANDRIA VA FEDERAL COURT ALLEGES THAT OUTOFSTATE MONEY INFLUENCES CAMPAIGNS TO THE POINT THAT SUCH DONATIONS RUN AFOUL OF CONSTITUTIONAL REQUIREMENTS THAT SENATORS BE ELECTED BY THE PEOPLE OF THE STATE THEY REPRESENT THE SUIT ALSO CONTENDS THAT THE FACT THAT VOTERS OF SOME STATES SHIP HUGE AMOUNTS OF CONTRIBUTIONS TO OTHER STATES IN EFFECT GIVES THEM MORE REPRESENTATION IN CONGRESS THAN THE CONSTITUTION INTENDS WE NO LONGER HAVE SENATORS WHO REPRESENT DISTINCT STATES WE HAVE SENATORS WHO REPRESENT DISTINCT GROUPS SAID FRANCIS FROELICH A LAWYER AT THE WASHINGTON DC FIRM OF SHAW PITTMAN POTTS & TROWBRIDGE AND ONE OF FOUR PLAINTIFFS IN THE SUIT THEY ARE FREE AGENTS TO GO OUT AND MARKET THEIR REPRESENTATION TO ANYBODY THEY WANT TO MR FROELICH SAID EVERY MEMBER OF THE SENATE DURING THE 19901992 CONGRESSIONAL TERM ACCEPTED MONEY FROM OUTOFSTATE SOURCES INCLUDING 50 SENATORS FOR WHOM OUTOFSTATE CONTRIBUTIONS ACCOUNTED FOR MORE THAN HALF THE AMOUNT THEY SPENT TO GET ELECTED THE SUIT NAMES AS DEFENDANTS THE FEDERAL ELECTION COMMISSION AND THE ANNOUNCED CANDIDATES FOR THE 1994 US SENATE RACE IN VIRGINIA A SPOKESWOMAN FOR SEN CHARLES S ROBB ONE OF THE DEFENDANTS SAID MR ROBB BELIEVES THAT LIMITING OUTOFSTATE CAMPAIGN CONTRIBUTIONS IS A REASONABLE RESPONSIBLE GOAL BUT ADDED THAT UNTIL A WORKABLE SYSTEM CAN BE DEVELOPED TO LIMIT OUTOFSTATE CONTRIBUTIONS WE WILL FOLLOW THE CURRENT ELECTION REGULATIONS AN FEC SPOKESMAN DECLINED COMMENT A FORMER BROKER AT SMITH BARNEY HARRIS UPHAM & CO WHO LEFT THE PRIMERICA CORP UNIT IN 1987 TO SET UP HIS OWN MONEYMANAGEMENT COMPANY WAS SENTENCED TO 27 MONTHS IN PRISON AND ORDERED TO PAY 167017 IN RESTITUTION IN JUNE HE PLEADED GUILTY IN FEDERAL COURT IN NEW YORK TO MISAPPROPRIATING FUNDS FROM THREE OF HIS FIRM'S CLIENTS AND TO COMMITTING PERJURY BEFORE THE SECURITIES AND EXCHANGE COMMISSION PROSECUTORS SAID ALISANDRO APONTE WHO LEFT SMITH BARNEY TO FOUND ASHLAND CAPITAL MANAGEMENT INC SPENT CLIENT MONEY ON PERSONAL AND BUSINESS EXPENSES INSTEAD OF INVESTING IT LAST YEAR MR APONTE SETTLED A CIVIL LAWSUIT BROUGHT BY THE SEC WITHOUT ADMITTING OR DENYING THE CHARGES THAT SUIT INVOLVED ONE OF THE THREE ALLEGED VICTIMS IN THE CRIMINAL INDICTMENT MARGARET A JACOBS AND RICHARD B SCHMITT CONTRIBUTED TO THIS ARTICLE 9312270069 931227 INTERNATIONAL WASHINGTON INSIGHT GATT AGREEMENT'S BIGGEST WINNERS MAY TURN OUT TO BE DEVELOPING NATIONS BY TIM CARRINGTON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE LAST ACT OF THE MARATHON GLOBAL TRADEAGREEMENT DRAMA WAS DOMINATED BY THE WHEEDLING AND HORSETRADING OF AMERICANS EUROPEANS AND JAPANESE BUT THE BIGGEST WINNERS MAY BE DEVELOPING COUNTRIES ON THE SURFACE THE POORER NATIONS UNDERSTANDABLY FELT SIDELINED AND SOME COMPLAINED THAT THEY WERE FORCED TO ACCEPT WHAT THE RICH COUNTRIES DISHED UP THE MOREDEVELOPED COUNTRIES CARRY MORE WEIGHT AND THEY GOT MORE SAYS RICHARD BERNAL JAMAICA'S AMBASSADOR TO THE US BUT DESPITE SUCH EARLY REACTIONS THE DEVELOPING COUNTRIES GAINED MUCH FROM THE SEVENYEAR SAGA THAT PRODUCED THE PACT NEGOTIATED UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE FOR ONE THING NO SINGLE GROUP STOOD TO LOSE AS BADLY IF THE TRADE ROUND FAILED THE AMERICANS AND EUROPEANS COULD HAVE NESTLED INTO THEIR ALREADY FORMED REGIONAL TRADE BLOCS AND THE JAPANESE COULD HAVE CONCENTRATED ON DEEPENING PACIFIC TRADE ARRANGEMENTS COUNTRIES SUCH AS INDIA MAURITIUS OR JAMAICA WHICH DON'T BELONG TO THE WORLD'S POWERFUL ECONOMIC CLUBS WOULD HAVE BEEN SQUEEZED OUT SECONDLY THE DEVELOPING WORLD COULD BENEFIT MOST FROM THE GATT ROUND'S LEAST PUBLICIZED ACCOMPLISHMENT THE REDUCTION IN TARIFFS ON A SWATH OF MANUFACTURED ITEMS SUCH AS STEEL PAPER AND FURNITURE DEVELOPING COUNTRIES AREN'T WHAT THEY USED TO BE MANY PARTICULARLY IN EAST ASIA HAVE BUILT LARGE MANUFACTURING SECTORS THEIR STAKE IN WORLDTRADE TALKS GOES FAR BEYOND CONCERNS ABOUT TRADITIONAL DEVELOPINGWORLD ITEMS LIKE BAUXITE OR BANANAS IN AN ENORMOUS STRUCTURAL SHIFT AN INCREASING SHARE OF INDUSTRIAL PRODUCTION IS MOVING FROM THE RICH COUNTRIES TO THE DEVELOPING COUNTRIES ACCORDING TO A STUDY BY ECONOMISTS DEANNE JULIUS AND RICHARD BROWN TODAY'S 24 LARGE INDUSTRIAL ECONOMIES WILL SEE MANUFACTURING EMPLOYMENT DROP TO LESS THAN 10 OF THEIR WORK FORCES IN THE NEXT THREE DECADES TODAY DEVELOPEDCOUNTRY MANUFACTURING EMPLOYMENT RANGES FROM ABOUT 15 IN THE US TO 32 IN GERMANY MEANWHILE THE DEVELOPING COUNTRIES WILL CONTINUE TO INCREASE LIVING STANDARDS ACHIEVING THE GAINS LARGELY BY DOMINATING LABORINTENSIVE MANUFACTURING MS JULIUS THE CHIEF ECONOMIST AT BRITISH AIRWAYS AND MR BROWN A FORMER ECONOMIST FOR THE INTERNATIONAL MONETARY FUND AND THE BANK OF ENGLAND ARGUE THAT TRADE IN MANUFACTURED GOODS WILL TAKE ON COMMODITYSTYLE CHARACTERISTICS WITH PRODUCTION COSTS OFTEN DICTATING MARKET SHARE THEY SAY INDUSTRIALIZED NATIONS WHICH WILL HAVE HIGHER COSTS INCREASINGLY WILL CONCENTRATE ON CUSTOMIZED VALUEADDED PRODUCTION AND SERVICES THEIR PREDICTIONS CONTAINED IN THE WINNING ESSAY IN A COMPETITION SPONSORED BY AMERICAN EXPRESS BANK SUGGEST THAT THE DEVELOPING COUNTRIES WILL BE THE BIG BENEFICIARIES OF THE MANUFACTURING TARIFF REDUCTIONS THAT WERE NEGOTIATED IN GENEVA EVEN THOUGH CERTAIN TARIFFS ON DEVELOPINGCOUNTRY GOODS WON'T COME DOWN AS MUCH AS ONES MADE IN EUROPE OR THE US MEANWHILE THE DEVELOPING COUNTRIES FACE IMPROVED CONDITIONS IN TWO MORE TRADITIONAL EXPORT AREAS TEXTILES AND AGRICULTURE IT CAME OUT PRETTY WELL FOR THEM SAYS JAGDISH BHAGWATI A COLUMBIA UNIVERSITY ECONOMIST AND ADVISER TO THE INDIAN GOVERNMENT THOUGH THEY DIDN'T GET AS MUCH ACCESS TO FOREIGN MARKETS AS THEY INITIALLY SOUGHT HE ADDS IT'S STILL A GIGANTIC STEP FORWARD THE EVENTUAL SHRINKING OF EXPORT SUBSIDIES WILL MEAN THAT EUROPEAN FARMERS WILL UNLEASH LESS PRODUCE ON THE WORLD MARKET A SHIFT THAT COULD HELP FARMERS IN AFRICA LATIN AMERICA AND ASIA AS FOR TEXTILES US COMPANIES WORRIED ABOUT THE COMPETITION FROM ABROAD HAD PUSHED THE CLINTON ADMINISTRATION TO NEGOTIATE A 15YEAR PHASEOUT OF THE CURRENT SYSTEM OF TEXTILE AND APPAREL QUOTAS BUT THE DEVELOPING COUNTRIES SUCCEEDED IN GETTING A 10YEAR PHASEOUT ECONOMISTS AGREE THAT THE GATT DEAL ULTIMATELY WILL MEAN MOST TO DEVELOPING COUNTRIES THAT HAVE BUILT A VARIED MANUFACTURING BASE AND ARE LESS DEPENDENT ON NATURAL RESOURCES VINOD THOMAS A SENIOR WORLD BANK ECONOMIST PREDICTS THAT THE TRADE DEAL WILL BE A PARTICULAR BENEFIT TO THE ALREADY BOOMING EXPORTORIENTED ECONOMIES OF EAST ASIA FROM THE EAST ASIAN POINT OF VIEW THE GATT ROUND WAS VERY IMPORTANT HE SAYS IT WILL SLOW PRESSURES TO FORM INWARDLOOKING BLOCS ONE TROUBLE SPOT FOR THE DEVELOPING ECONOMIES IS THAT THE TRADE PACT GIVES NATIONS A FAIRLY FREE HAND TO LAUNCH ANTIDUMPING ACTIONS AGAINST EXPORTERS SUSPECTED OF UNLOADING GOODS AT UNFAIRLY LOW PRICES DEVELOPING COUNTRIES WORRY THAT THE US AND EUROPE WILL USE THE ANTIDUMPING WEAPON TO LIMIT INCURSIONS BY LOWCOST COMPETITORS TAKING THIS WORRY INTO ACCOUNT MR BHAGWATI THE ADVISER TO INDIA CONCLUDES THE GATT DEAL IS GOOD BUT NOT GREAT 9312270061 931227 FOREIGN EXCHANGE YEN IS EXPECTED TO WEAKEN FURTHER IN FACE OF JAPAN'S POLITICAL STAGNATION BY ALEKSANDRS ROZENS AND JOHN P HUGHES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE YEN IS EXPECTED TO WEAKEN FURTHER IN COMING WEEKS AS CONCERN MOUNTS THAT POLITICAL STAGNATION IN JAPAN IS PREVENTING ANY MEANINGFUL REFORM OF THE NATION'S AILING ECONOMY THE UNCERTAINTY IN JAPANESE POLITICS ALREADY HAS SAPPED THE YEN'S STRENGTH AND CONTINUED DECLINES ARE EXPECTED WE MAY SEE THE YEN DECLINE TO 115120 LEVELS AGAINST THE DOLLAR SAYS MICHAEL O'HANLON CHIEF INTERNATIONAL ECONOMIST AT KIDDER PEABODY SECURITIES LONDON THE LACK OF CONFIDENCE IN POLITICIANS HAS CAUSED THE YEN TO COME UNDER PRESSURE IN TOKYO FRIDAY THE DOLLAR STOOD AT 11085 YEN UP FROM 11063 YEN IN LATE NEW YORK TRADING THURSDAY AND AT 16969 MARKS UP FROM 16932 MARKS IN NEW YORK THURSDAY THE DOLLAR WASN'T TRADED IN NEW YORK ON FRIDAY THE DAY BEFORE CHRISTMAS ABOUT MIDDAY ON MONDAY IN TOKYO THE DOLLAR WAS TRADING 11060 YEN AND AT 16945 MARKS SOME TRADERS SAY THAT JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA WILL BE UNABLE TO MAKE ECONOMIC PROGRESS WHILE HE IS BOGGED DOWN IN A DISPUTE OVER POLITICAL REFORM WITH THE LIBERAL DEMOCRATIC PARTY WHICH WAS VOTED OUT OF POWER IN THE SUMMER AFTER HAVING RULED JAPAN FOR 38 YEARS ON FRIDAY PREMIER HOSOKAWA PROPOSED MEASURES THAT INCLUDED DEREGULATION TO PROMOTE PRIVATE INVESTMENT AND IMPROVE THE QUALITY OF LIFE IN JAPAN QUALITYOFLIFE ISSUES HE SAID INCLUDE HOUSING LAND INVESTMENT DISTRIBUTION AND DATA COMMUNICATIONS MR HOSOKAWA ALSO PROPOSED AID PACKAGES FOR AGRICULTURE AND SMALL AND MEDIUMSIZE INDUSTRIES HELP FOR LABOR AND COMPANIES UNDERGOING RESTRUCTURING AND EFFORTS TO REACTIVATE THE REALESTATE MARKET HE SUGGESTED TAX REFORMS INCLUDING A REDUCTION IN INCOME TAXES AND AN INCREASE IN CONSUMPTION LEVIES THE JAPANESE PARLIAMENT WHICH WAS SUPPOSED TO HAVE ENDED ITS SESSION LAST WEEK BUT HAS EXTENDED ITS SESSION TO JAN 29 WILL MEET TODAY MR HOSOKAWA'S POLITICALREFORM PROPOSAL CALLS FOR THE INTRODUCTION OF SINGLESEAT CONSTITUENCIES AND THE CURTAILMENT OF CORPORATE DONATIONS TO INDIVIDUAL LEGISLATORS IT HAS BEEN APPROVED BY THE JAPANESE PARLIAMENT'S LOWER HOUSE BUT HAS BEEN BOGGED DOWN IN THE UPPER HOUSE BY THE LDP'S DELAYING TACTICS IF THE DELIBERATIONS IN PARLIAMENT APPEAR INCONCLUSIVE MARKET WATCHERS SAY THEY WOULDN'T BE SURPRISED IF THE JAPANESE PRIME MINISTER CALLED FOR A GENERAL ELECTION IT IS UNLIKELY THAT YOU WILL GET AN ECONOMICSTIMULUS PACKAGE WHICH WILL SHIFT THE BURDEN FROM FISCAL POLICY TO MONETARY POLICY SAYS KIDDER'S MR O'HANLON HE SAYS THAT THE FOREIGNEXCHANGE MARKET HAS BEGUN TO ASSUME THAT A RATE CUT BY THE BANK OF JAPAN IS IN THE PIPELINE MR O'HANLON EXPECTS THE DISCOUNT RATE THE CENTRAL BANK'S RATE ON LOANS TO OTHER BANKS TO BE REDUCED AS SOON AS THIS WEEK A CUT IN THE RATE WHICH CURRENTLY STANDS AT 175 COULD TOTAL HALF A PERCENTAGE POINT WITH THE LACK OF CONFIDENCE IN MONETARY AND FISCAL POLICY THE YEN COULD TRADE THE LOW END OF THE 115120 RANGE MR O'HANLON SAYS WE'RE LOOKING FOR THE YEN TO CONTINUE TO WEAKEN AGAINST THE DOLLAR SAYS MICHAEL CASEY INTERNATIONAL ECONOMIST WITH MARIA FIORINI RAMIREZ INC ONE POSSIBLE WAY FOR HOSOKAWA TO SLOW THE YEN'S SLIDE WOULD BE IF HE ANNOUNCED THE KIND OF FISCALSTIMULUS PACKAGE BENTSEN TALKED ABOUT US TREASURY SECRETARY LLOYD BENTSEN RECENTLY EXPRESSED ANNOYANCE AT THE SLOW PACE OF JAPANESE ECONOMIC REFORMS WE THINK BENTSEN WAS TRYING TO GIVE THE PRIME MINISTER SOME SUPPORT IN HIS COMMENTS MR CASEY SAID ANTHONY VIGNOLA DIRECTOR OF ECONOMIC RESEARCH AT KIDDER PEABODY & CO IN NEW YORK SAID PEOPLE WILL SOON REALIZE THAT THE US ECONOMY IS IN A LOT BETTER SHAPE THAN MANY SUSPECT AND THAT THERE ISN'T GOING TO BE THE FIRSTHALF FALLOFF MANY SEE THE REALIZATION THAT THE US ECONOMY IS RELATIVELY STRONG WILL SET OFF THE PERCEPTION THAT US INTEREST RATES ARE GOING TO MOVE HIGHER AND GIVE FIRM SUPPORT TO THE DOLLAR AGAINST BOTH THE YEN AND THE MARK MR VIGNOLA ADDED 9312270060 931227 WHAT'S NEWS BUSINESS AND FINANCE RETAILERS HAD AN UNREMARKABLE HOLIDAY SEASON THAT MET EXPECTATIONS OVERALL BUT DISTRIBUTED ITS GIFTS TO SHOP OWNERS UNEVENLY SALES PICKED UP LAST WEEK AFTER A POSTTHANKSGIVING LULL BUT ONLY WITH THE HELP OF HEAVIERTHANUSUAL DISCOUNTING WHICH PUT PRESSURE ON PROFIT MARGINS MERCHANTS SAY A NEW TYPE OF SHOPPER UNAFRAID OF BUYING BUT INSISTING ON VALUE IS DOMINATING SPENDING THE SEC HAS REQUESTED DETAILS ABOUT A TRADING HALT IN QVC STOCK LAST WEEK JUST BEFORE PARAMOUNT ANNOUNCED THAT IT HAD ENDORSED THE HOMESHOPPING CHANNEL'S BID QVC SHARES DIDN'T RESUME TRADING LAST WEDNESDAY SO WHEN PARAMOUNT RESUMED TRADING LATER THAT DAY INVESTORS DIDN'T HAVE ENOUGH INFORMATION TO VALUE THE CASHANDSTOCK BID STRENGTH IN THE ECONOMY CONTINUES TO BUILD A STRING OF DATA SHOWS TOPPING THE GOOD NEWS IS A 2 INCREASE IN DURABLEGOODS ORDERS IN NOVEMBER ALSO PERSONAL INCOME ROSE 05 WHILE CONSUMER SPENDING FELL 03 SUGGESTING THAT CONSUMERS ARE SAVING MORE MACHINETOOL ORDERS FELL 4 IN NOVEMBER FROM OCTOBER A SIGN THAT THE INDUSTRY THOUGH IMPROVING STILL ISN'T RECEIVING ENOUGH ORDERS TO SUSTAIN STEADY GROWTH IN BACKLOG COMPARED WITH NOVEMBER 1992 ORDERS ROSE 50 MEDICAL CARE AMERICA IS BEING STUDIED BY AT LEAST SEVEN PROSPECTIVE SUITORS OPENING THE POSSIBILITY OF A BIDDING WAR FOR ALL OR PART OF THE FIRM AMONG THE POSSIBLE SUITORS ARE WR GRACE AND CAREMARK INTERNATIONAL UAL BEGAN EDUCATING INSTITUTIONAL SHAREHOLDERS ON ITS COMPLEX EMPLOYEEBUYOUT AGREEMENT AND SOME LIKED WHAT THEY HEARD OTHER SHAREHOLDERS STRESSED THAT THEY HAVEN'T RECEIVED ENOUGH DETAILS TO SAY HOW THEY WILL VOTE ON THE PROPOSAL WHEN PROXY MATERIALS ARE ISSUED AFTER MARCH 15 AMERICA WEST AIRLINES SAID IT RECEIVED A BID FROM A NEW YORK MONEY MANAGER TO PUMP 250 MILLION INTO THE FIRM MORE THAN ENOUGH TO HELP IT EMERGE FROM CHAPTER 11 BANKRUPTCY THE OFFER SEEMS TO FAVOR THE FIRM'S CHAIRMAN IN A DISPUTE WITH ITS CEO WHO HAD RECRUITED OTHER INVESTORS VEHICLE SALES' STEADY RECOVERY CONTINUED IN MIDDECEMBER BUILDING HOPE THAT THE REBOUND IN THE US AUTO INDUSTRY WILL BE SUSTAINED AND ROBUST SALES ROSE 273 FROM A YEAR AGO THE WHITE HOUSE NARROWED ITS LIST OF NOMINEES FOR A FEDERAL RESERVE BOARD SEAT TO ECONOMISTS PETER KENEN OF PRINCETON UNIVERSITY AND VAN DOORN OOMS A WASHINGTON VETERAN ALICE RIVLIN DEPUTY DIRECTOR OF THE BUDGET OFFICE DECLINED CONSIDERATION FEDERAL RESERVE POLICY MAKERS UNANIMOUSLY DECIDED AT THEIR NOV 16 MEETING TO HOLD INTEREST RATES STEADY AND TO LEAN NEITHER TOWARD HIGHER NOR LOWER RATES IN THE ENSUING WEEKS THE FCC WILL GRANT LUCRATIVE SLOTS TO LAUNCH WIRELESS PERSONAL COMMUNICATIONS SYSTEMS TO THREE COMPANIES THAT HELPED DEVELOP THE TECHNOLOGY ZOLL MEDICAL BELATEDLY CONCEDED THAT THE FDA ISSUED A WARNING LETTER CRITICIZING OPERATIONS IN THE COMPANY'S DEFIBRILLATOR MANUFACTURING WALT DISNEY'S PLANNED 3 BILLION EXPANSION OF ITS CALIFORNIA THEME PARK APPEARS LESS CERTAIN AS IT FACES LENGTHY GOVERNMENT NEGOTIATIONS OVER INFRASTRUCTURE COSTS AND COMMUNITY ISSUES AS WELL AS FISCAL WOES AT EURO DISNEY BONDS LEHMAN BROTHERS TREASURY INDEX 557663 UP 1224 COMMODITIES OIL 1448 A BARREL OFF 29 CENTS DOW JONES FUTURES INDEX 14143 UP 034 SPOT INDEX 12730 UP 082 DOLLAR 11063 YEN UP 028 16932 MARKS OFF 00083 9312270059 931227 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR A SLIGHT RISE IN MORTGAGE RATES HAS PUT A CRIMP IN NEWHOME SALES BUT ANALYSTS SAY THE SETBACK WILL BE ONLY TEMPORARY SALES OF NEW SINGLEFAMILY HOMES FELL 65 IN OCTOBER AFTER INTEREST RATES BEGAN EDGING BACK UP FROM HISTORIC LOWS THE MONTH BEFORE NEWHOME SALES HAD SOARED 149 IN SEPTEMBER WHEN THE AVERAGE RATE ON 30YEAR FIXEDRATE MORTGAGES FELL TO 682 THE LOWEST LEVEL IN A QUARTER OF A CENTURY BUT THE MARKET FOR NEW HOMES REMAINS STRONG AND PROBABLY REGAINED IN NOVEMBER MOST OF WHAT WAS LOST IN OCTOBER SAID FRANK NOTHAFT DEPUTY CHIEF ECONOMIST AT THE FEDERAL HOME LOAN MORTGAGE CORP ALTHOUGH MORTGAGE RATES ROSE ABOVE 7 IN NOVEMBER AND DECEMBER THEY STILL ARE MORE THAN A FULL PERCENTAGE POINT LOWER THAN THEY WERE A YEAR AGO MR NOTHAFT SAID MORTGAGE RATES ON THE WHOLE ARE STILL AT EXTREMELY LOW LEVELS AND CONSUMER CONFIDENCE IS UP BECAUSE OF THE STRONG ECONOMIC GROWTH IN THE FOURTH QUARTER HE SAID MR NOTHAFT SAID HE EXPECTS GENTLE UPWARD PRESSURE ON MORTGAGE RATES DURING THE NEXT 12 MONTHS BUT ANY INCREASES SHOULD BE MODEST AND 30YEAR RATES WILL LIKELY REMAIN BELOW 8 HE ADDED 9312270054 931227 TECHNOLOGY BRIEF CENTOCOR INC TOCOR II UNITHOLDER FILES LAWSUIT TO HALT ACQUISITION A UNITHOLDER OF TOCOR II INC TORTOLA BRITISH VIRGIN ISLANDS FILED A LAWSUIT SEEKING TO BLOCK ITS PROPOSED ACQUISITION BY CENTOCOR INC MALVERN PA THE BIOTECHNOLOGY COMPANY THAT LAUNCHED TOCOR II TWO YEARS AGO THE COMPLAINT FILED IN THE COURT OF COMMON PLEAS OF CHESTER COUNTY PA ALLEGED THAT TOCOR II'S DIRECTORS BREACHED THEIR FIDUCIARY DUTIES BY FAILING TO MAXIMIZE UNITHOLDER VALUE AMONG OTHER THINGS CENTOCOR SAID IN A STATEMENT CENTOCOR ANNOUNCED DEC 10 THAT IT PLANNED TO ACQUIRE ALL UNITS OUTSTANDING OF TOCOR II FOR 40 A UNIT IN NEW CENTOCOR STOCK IN A DEAL VALUED AT ABOUT 90 MILLION CENTOCOR SAID THAT REGARDLESS OF THE SUIT ITS OFFER TO ACQUIRE TOCOR II CAN'T BEGIN UNTIL IT REGISTERS ITS PROPOSED NEW SHARES WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY DIDN'T SAY WHEN IT PLANS TO FILE THE REGISTRATION STATEMENT 9312270051 931227 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS FEDERAL FUNDS 3 1/16 HIGH 2 1/2 LOW 2 1/2 NEAR CLOSING BID 2 3/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 318 30 TO 119 DAYS 323 120 TO 149 DAYS 326 150 TO 179 DAYS 328 180 TO 239 DAYS 340 240 TO 270 DAYS LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 5/16 ONE MONTH 3 5/16 THREE MONTHS 3 1/2 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 3/4 LOW 2 3/4 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 318 30 TO 119 DAYS 323 120 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 331 30 DAYS 331 60 DAYS 331 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 262 TWO MONTHS 264 THREE MONTHS 279 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 317 30 DAYS 317 60 DAYS 317 90 DAYS 320 120 DAYS 322 150 DAYS 327 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 5/16 THREE MONTHS 3 1/2 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 614 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 20 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 306 13 WEEKS 325 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 700 60 DAYS 708 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 700 60 DAYS 710 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 9312270045 931227 INTERNATIONAL JAPAN'S VEHICLEEXPORTS FALL TOKYO JAPAN'S EXPORTS OF CARS TRUCKS AND BUSES PLUMMETED 23 IN NOVEMBER FROM THE YEAREARLIER MONTH TO 330633 UNITS THE DECLINE MARKS THE EIGHTH CONSECUTIVE MONTH OF YEARONYEAR CONTRACTION THE JAPAN AUTOMOBILE MANUFACTURERS' ASSOCIATION SAID 9312270044 931227 SOME UAL INSTITUTIONAL INVESTORS LIKE BUYOUT PLAN OTHERS WANT MORE DETAILS BY ROBERT L ROSE AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET JOURNAL UAL CORP BEGAN THE LONG PROCESS OF EDUCATING INSTITUTIONAL SHAREHOLDERS ON ITS COMPLEX EMPLOYEEBUYOUT AGREEMENT AND SOME LIKED WHAT THEY HEARD AT THE SAME TIME OTHER SHAREHOLDERS IN THE CHICAGOBASED PARENT OF UNITED AIRLINES STRESSED THAT THEY HAVEN'T LEARNED ENOUGH DETAILS TO SAY HOW THEY WILL VOTE ON THE PROPOSED TRANSACTION WHEN PROXY MATERIALS ARE ISSUED AFTER MARCH 15 THIS STOCK IS GROSSLY UNDERVALUED CONTENDED SHARON FEY SENIOR ANALYST AT SANFORD C BERNSTEIN & CO WHO WAS ENTHUSIASTIC ABOUT THE DEAL AFTER PARTICIPATING IN A TELEPHONE CONFERENCE CALL THURSDAY WITH UAL EXECUTIVES INSTITUTIONAL INVESTORS AND ANALYSTS SANFORD C BERNSTEIN OWNS ABOUT 17 MILLION SHARES OR 7 OF UAL'S STOCK IF THE STOCK WAS UNDERVALUED IT BECAME EVEN MORE SO THURSDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING UAL SHARES DROPPED 1875 TO 146625 AFTER A GAIN OF 425 WEDNESDAY UNDER THE AGREEMENT WHICH WOULD CREATE THE LARGEST COMPANY MAJORITYOWNED BY EMPLOYEES SHAREHOLDERS WOULD GET A PACKAGE OF CASH AND SECURITIES VALUED BY THE AIR LINE PILOTS ASSOCIATION AND INTERNATIONAL ASSOCIATION OF MACHINISTS AT 173 A SHARE EMPLOYEES WOULD GET AT LEAST 53 OF THE COMPANY IN RETURN FOR WAGE AND WORKRULE CONCESSIONS ESTIMATED BY THE COMPANY AT 45 BILLION AND BY THE UNIONS AT 5 BILLION MS FEY SAID THE DISCUSSION WITH UNITED'S EXECUTIVES INDICATED THAT THE BENEFIT OF THE DEAL COMES FROM HARD CASH SAVINGS NOT PRODUCTIVITY GAINS THE EXECUTIVES WERE PAUL GEORGE SENIOR VICE PRESIDENT FOR HUMAN RESOURCES AND DOUGLAS HACKER SENIOR VICE PRESIDENT FOR FINANCE ALTHOUGH AT LEAST ONE INSTITUTIONAL HOLDER EXPRESSED DISMAY THAT CHAIRMAN STEPHEN WOLF DIDN'T PARTICIPATE A UNITED OFFICIAL SAID MR WOLF WILL GET PERSONALLY INVOLVED IN EXPLAINING THE DEAL KEVIN MURPHY AIRLINE ANALYST AT MORGAN STANLEY & CO SAID IT APPEARED THAT THE TRANSACTION WOULDN'T HAVE MUCH EFFECT ON UAL'S EARNINGS INITIALLY BUT THAT IT GAINS MOMENTUM IN YEARS FOUR FIVE AND SIX INSTITUTIONAL INVESTORS SUCH AS JIM HOLMES OF DREMAN VALUE MANAGEMENT LP ARE TAKING A WAITANDSEE APPROACH IT'S A NEUTRAL MR HOLMES SAID WHEN ASKED ABOUT THE PROSPECT OF MAJORITY EMPLOYEE OWNERSHIP IT DEPENDS ON HOW THEY WORK OUT THE DETAILS THE QUALITY OF THE COOPERATIVE ATTITUDES AND HOW YOU GET THE EFFICIENCIES MEANWHILE THE PILOTS AND MACHINISTS UNIONS WHICH NEGOTIATED THE BUYOUT WITH UAL MANAGEMENT DESCRIBED THE TRANSACTION IN GLOWING TERMS IN A LETTER TO UAL'S BOARD FILED THURSDAY WITH THE SECURITIES AND EXCHANGE COMMISSION WE BELIEVE THAT OUR PLAN WILL CATAPULT THE COMPANY LIGHTYEARS AHEAD OF ITS COMPETITORS BY ENABLING IT TO SERVE THE GLOBAL COMMUNITY MORE FLEXIBLY AND EFFICIENTLY THAN ANY OTHER MAJOR AMERICAN CARRIER AND TO COMPETE HEAD TO HEAD WITH LOWCOST CARRIERS' IN THE SHORTHAUL DOMESTIC MARKETPLACE THE LETTER STATES AMONG OTHER THINGS THE UNIONS' AGREEMENT WITH UAL CONTAINS A NOSTRIKE CLAUSE FOR THE FIVE TO SIXYEAR CONCESSION PERIOD PLUS A 12YEAR COMMITMENT TO COOPERATE IN CREATING U2 THE PLANNED SHORTHAUL CARRIER TO COMPETE WITH LOWCOST RIVALS LEADERS OF BOTH THE PILOTS AND MACHINISTS UNIONS PLAN TO MEET WITH MEMBERS IN JANUARY TO DISCUSS SPECIFICS OF THE PACT THE 22500 GROUNDCREW WORKERS WILL VOTE BY JAN 31 AND FOR THE 8000 UNITED PILOTS REPRESENTATIVES ELECTED TO THEIR UNION'S MASTER EXECUTIVE COUNCIL WILL VOTE ON THE BUYOUT ALSO BEFORE THE END OF JANUARY UNDER THE PROPOSED BUYOUT PILOTS' WAGE RATES WILL BE REDUCED 157 AND THE COMPANY'S PENSION CONTRIBUTION TO THE PILOTS ALSO WILL BE REDUCED EMPLOYEES REPRESENTED BY THE MACHINISTS UNION WILL HAVE THEIR HOURLY WAGE RATES REDUCED BY 97 UNITED'S 19000 FLIGHT ATTENDANTS WHO DROPPED OUT OF THE BUYOUT TALKS AREN'T INCLUDED IN THE EMPLOYEE STOCKOWNERSHIP PLAN BUT THEY ARE EXPECTED TO CONSIDER JOINING IT WHEN THE ASSOCIATION OF FLIGHT ATTENDANTS' MASTER EXECUTIVE COUNCIL MEETS IN CHICAGO JAN 11 TO 13 THE ATTENDANTS ALREADY HAVE RECEIVED INPUT FROM MACHINISTS AND PILOTS BUT ARE AWAITING COMPANY INPUT THE COUNCIL MUST DECIDE WHETHER TO VOTE TO JOIN THE BUYOUT AND WHETHER TO DECIDE BY CONSENSUS OF THE COUNCIL OR BY MEMBER RATIFICATION UAL HAS TARGETED 416 MILLION IN GIVEBACKS IT WOULD LIKE FROM THE FLIGHT ATTENDANTS IF THEY JOIN THE BUYOUT IN EXCHANGE THE FLIGHT ATTENDANTS WOULD GET A 126 STAKE IN THE STOCKOWNERSHIP PLAN AND ONE OF THE 13 BOARD SEATS 9312270043 931227 WORLD MARKETS NIKKEI IS AT RISK OF POSTING A LOSS FOR THE YEAR LONDON MARKET LEADS A RALLY ACROSS EUROPE A WALL STREET JOURNAL NEWS ROUNDUP THE 17 PLUNGE IN THE NIKKEI STOCK AVERAGE ON FRIDAY BROUGHT THE TOKYO MARKET DANGEROUSLY CLOSE TO FINISHING 1993 LOWER THAN IT STARTED THE YEAR IN CONTRAST EUROPEAN MARKETS WERE MOVING HIGHER LONDON STOCKS FINISHED FRIDAY'S HALFDAY TRADING SESSION AT THEIR SECOND CONSECUTIVE RECORD CLOSE WITH THE BENCHMARK FINANCIAL TIMES STOCK EXCHANGE 100 INDEX FINISHING ABOVE 3400 FOR THE FIRST TIME FRANKFURT STOCKS ALSO WRAPPED UP PRECHRISTMAS TRADING AT A RECORD HIGH WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11101 DOWN 043 REFLECTING DECLINES IN ASIA/PACIFIC MARKETS AND A DROP IN EUROPEAN MARKETS MARKETS IN THE AMERICAS FINISHED UNCHANGED PLANTATION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 26702 UP 550 OR 210 WITH HIGH & LOW OF MALAYSIA POSTING A 1013 GAIN IN ITS LOCAL CURRENCY OVERSEAS TRADING STOCKS TRAILED AT 10025 DOWN 218 OR 213 WITH HANWA OF JAPAN SLIDING 1571 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 13031 POINTS WEDNESDAY SANK 30463 POINTS ON FRIDAY TO 1714111 VOLUME TOTALED 210 MILLION SHARES WITH DECLINING ISSUES LEADING GAINERS 820205 THE TOKYO STOCK PRICE INDEX OR TOPIX OF FIRSTSECTION ISSUES WHICH GAINED 464 POINTS WEDNESDAY FELL 2167 OR 15 TO 142870 THE MARKET WAS CLOSED ON THURSDAY FOR JAPANESE EMPEROR AKIHITO'S BIRTHDAY THE NIKKEI'S FINISH ON FRIDAY WAS BARELY 200 POINTS ABOVE ITS 1992 CLOSE OF 1692495 THE EROSION IN STOCK PRICES IS ATTRIBUTED TO THE GOVERNMENT'S PREOCCUPATION WITH POLITICAL REFORM PRIME MINISTER MORIHIRO HOSOKAWA'S CONTROVERSIAL EFFORTS TO CLEAN UP CORRUPT POLITICS ARE LEAVING LITTLE ROOM FOR MEASURES TO LIFT THE ECONOMY OUT OF A SLUMP AND PICK UP STOCK PRICES SEVERAL HOURS AFTER THE CLOSE OF TRADING ON FRIDAY MR HOSOKAWA SAID IN A NATIONALLY TELEVISED NEWS CONFERENCE THAT HIS GOVERNMENT IS DELIBERATING DEREGULATORY MEASURES TO STIMULATE THE ECONOMY INCLUDING A REFORM IN THE TAX SYSTEM BUT THE PRIME MINISTER FELL SHORT OF DISCUSSING SPECIFIC STEPS SUCH AS A REDUCTION IN INCOME TAXES WHICH INVESTORS HAVE BEEN ANTICIPATING FOR MONTHS INDEED BY MIDDAY ON MONDAY INVESTORS DISAPPOINTED THAT MR HOSOKAWA'S SPEECH CARRIED LITTLE SUBSTANCE HAD DRIVEN THE NIKKEI DOWN WELL BELOW THE 1992 CLOSE IN THE MONDAY MORNING SESSION THE AVERAGE FELL 43154 POINTS OR 25 TO 1670957 THE NIKKEI IS NOW AT LESS THAN HALF ITS PEAK OF 3891586 AT THE CLOSE OF 1989 THE RELENTLESS DECLINE EACH YEAR SINCE THEN REFLECTS A STEADY DETERIORATION OF THE ECONOMY AND THERE MAY BE MORE DECLINES TO COME FACED WITH FAR MORE CAPACITY THAN A SLUMPING ECONOMY CAN SUSTAIN JAPANESE BUSINESSES HAVE SLOWLY BEGUN TO RESPOND TO CALLS FROM JAPAN'S BUREAUCRACY TO STREAMLINE AND MERGE OPERATIONS INDEED ANALYSTS SAY MERGERS ARE LIKELY TO BE A MAJOR THEME IN THE JAPANESE STOCK MARKET FOR THE COMING YEAR BUT SUCH MOVES DON'T GUARANTEE A STOCK MARKET RECOVERY MITSUBISHI KASEI AND MITSUBISHI PETROCHEMICAL TWO LEADING JAPANESE CHEMICAL COMPANIES ANNOUNCED THEY PLAN TO MERGE AS OF NEXT OCTOBER RUMORS OF A POSSIBLE MERGER HAVE BEEN FLYING SINCE LAST WEEK WHEN THE COMPANIES SAID THEY ARE CONSIDERING COMBINING SOME OPERATIONS THE COMPANIES' SHARES HOWEVER HAVE BEEN WEAK PERFORMERS BECAUSE INVESTORS SEE THE MOVE AS A SIGN THAT THE CHEMICAL INDUSTRY IS SUFFERING FROM OVERCAPACITY IN LONDON THE FTSE 100 CLIMBED 158 POINTS TO 34123 ON FRIDAY JUST SHY OF ITS HIGH FOR THE DAY THE FT 30 INDEX GAINED 83 TO 25577 VOLUME IN THE HALFDAY SESSION TOTALED 2421 MILLION SHARES COMPARED WITH 8854 MILLION ON THURSDAY FRIDAY'S GAINS CAME ON TOP OF A RECORD FINISH ON THURSDAY WHEN THE FTSE 100 SOARED 408 POINTS MOSTLY BECAUSE OF SHORTCOVERING IN WHICH TRADERS BUY SHARES TO REPLACED SHARES THEY HAD BORROWED IN A BET THAT THEIR PRICE WOULD DECLINE LONDON TRADING REOPENS WEDNESDAY AFTER AN EXTENDED CHRISTMAS HOLIDAY THE MARKET OPENED FRIDAY'S SESSION UNCHANGED THOUGH CASH PRICES WERE SOON DRIVEN HIGHER BY A BUOYANT FUTURES MARKET AND CONTINUED BUYING IN A BID TO COVER SHORT POSITIONS THE MARKET IS EXPECTED TO EXTEND ITS GAINS WHEN TRADING RESUMES THOUGH ADVANCES ARE EXPECTED TO BE MODEST MANY DEALERS ARE TAKING A LONG CHRISTMAS AND NEW YEAR BREAK AND AREN'T EXPECTED BACK AT THEIR DESKS UNTIL JAN 4 THE PROSPECTS FOR ANOTHER BULL MARKET IN 1994 ARE HIGH SOME FORECASTS CALL FOR THE FTSE 100 TO CLIMB AS HIGH AS 4000 BY THE END OF 1994 AND A TARGET OF 3600 WITHIN THE NEXT FEW MONTHS IS THOUGHT BY MANY TO BE WITHIN EASY REACH HOPES THAT UK INTEREST RATES WILL BE CUT IN THE NEW YEAR AND EVIDENCE THAT THE ECONOMY IS IN A PERIOD OF LOWINFLATION GROWTH HAVE UNDERPINNED MARKET SENTIMENT FOR SOME TWO MONTHS THE FRANKFURT MARKET WAS CLOSED FRIDAY FOR CHRISTMAS ON THURSDAY A POWERFUL SURGE IN THE BIGGEST BLUECHIP SHARES PROPELLED THE DAX 30STOCK INDEX TO THE LATEST IN A RECENT STRING OF RECORD FINISHES THE DAX SURGED 2533 POINTS OR 11 TO 222284 OFF ITS INTRADAY PEAK OF 222788 ELSEWHERE IN EUROPE STOCKS ENDED FRIDAY'S HALFDAY PREHOLIDAY SESSIONS UNCHANGED OR SLIGHTLY HIGHER IN THIN TRADING FOLLOWING STRONGER GAINS ON THURSDAY THE FRANKFURT MILAN MADRID AND STOCKHOLM BOURSES WERE CLOSED FRIDAY ASIAN AND PACIFIC MARKETS GENERALLY FINISHED HIGHER WITH SOME ASIAN MARKETS CLIMBING TO RECORD HIGHS IN HONG KONG THE BENCHMARK HANG SENG INDEX SMASHED THROUGH 11000 POINTS TO ANOTHER RECORD PEAK DURING THE HALFDAY CHRISTMAS EVE SESSION AS INVESTORS CONTINUED TO BUY AHEAD OF A TRADITIONAL NEWYEAR RALLY IN SINGAPORE SHARES HIT A SECOND CONSECUTIVE HIGH AMID EXPECTATIONS OF A NEWYEAR RALLY RIGHT UP TO CHINESE NEW YEAR ON FEB 10 AND POSSIBLY BEYOND THAT DATE IN SYDNEY PRICES STRENGTHENED AHEAD OF THE HOLIDAY BREAK SOME ENDOFYEAR BUYING IN LARGER STOCKS PUSHED PRICES UP IN MOST SECTORS IN AN OTHERWISE THIN MARKET IN KUALA LUMPUR STOCKS CLOSED BROADLY HIGHER IN ACTIVE DEALINGS AS THE MARKET LED BY BLUECHIPS ADDED ON TO A VIGOROUS TWODAY RALLY STRONG SUPPORT FROM INSTITUTIONAL INVESTORS LAUNCHED THE MARKET TO A ROBUST START AND CONTINUED TO DRIVE GAINS THROUGH THE DAY 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 9312270042 931227 LETTERS TO THE EDITOR A WARNING TO DOCTORS ABOUT BALANCE BILLING NORMAN LEVIN CORRECTLY STATES THAT THE PROHIBITION AGAINST PHYSICIANS COLLECTING PATIENT FEES ABOVE CONTRACTUALLY AGREED LIMITS BALANCE BILLING HAS NOTHING TO DO WITH CONSUMERS NOT BEING ALLOWED TO PAY MORE TO SOMEONE ELSE EVEN IF THEY THINK IT'S WORTH IT LETTERS TO THE EDITOR NOV 26 BUT THE ISSUE IS IRRELEVANT BECAUSE ALL BALANCE BILLING IS ELIMINATED IN THE ADMINISTRATION'S HEALTH SECURITY ACT INCLUDING FEEFORSERVICE PLANS THE ISSUE IS NOT WITH BALANCE BILLING BUT WITH THE COMMITMENT OF THE ADMINISTRATION TO SUPPORT HEALTH CARE IN THIS COUNTRY FOR EXAMPLE SINGLEPAYER STATES ARE EMPOWERED TO IMPOSE AUTOMATIC AND MANDATORY CUTS IN ALL PHYSICIAN FEES IF EXPENDITURES EXCEED A TARGETED PER CAPITA CEILING THE CALCULATION OF THE PER CAPITA EXPENDITURE IS BASED ON ALL ITEMS AND SERVICES PROVIDED UNDER THE AUSPICES OF THE REGIONAL HEALTH ALLIANCE YET ONLY HEALTHCARE PROVIDERS ARE REQUIRED TO MAKE UP ANY DEFICITS IN PROJECTED REVENUES THE CUTS IN PHYSICIAN FEES APPARENTLY WILL BE TAKEN EQUALLY FROM ALL PHYSICIANS WITH NO REGARD TO THE QUALITY OF MEDICAL CARE THEY DELIVER PHYSICIANS PARTICIPATING IN FEEFORSERVICE PLANS WILL FALL UNDER NEARLY IDENTICAL REGULATIONS AND REGIONAL HEALTH ALLIANCES CAN BE EXPECTED TO IMPOSE SIMILAR PRICE CONTROLS IN ALL STATES THE EFFECT OF THESE CONSTRAINTS UPON THE DELIVERY OF MEDICAL CARE ARE IMPOSSIBLE TO PREDICT BUT IF PATIENTS ARE UNHAPPY WITH THEIR REGIONAL HEALTH ALLIANCE FOR WHATEVER REASON AND SEEK TO GO OUTSIDE THE SYSTEM THEY WILL FIND THIS ALL BUT IMPOSSIBLE THE PHYSICIAN OR INSTITUTION CARING FOR SUCH A PATIENT COULD CONCEIVABLY FACE SERIOUS CRIMINAL PENALTIES 9312270041 931227 ECONOMY TWO ECONOMISTS REMAIN AS CANDIDATES FOR A SEAT ON FEDERAL RESERVE BOARD BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION HAS NARROWED ITS LIST FOR A SEAT ON THE FEDERAL RESERVE BOARD TO ECONOMIST PETER KENEN OF PRINCETON UNIVERSITY AND VETERAN WASHINGTON ECONOMIST VAN DOORN OOMS ADMINISTRATION OFFICIALS SAID THE WHITE HOUSE IS SEARCHING FOR A SUCCESSOR FOR WAYNE ANGELL WHOSE TERM EXPIRES ON JAN 31 THE NOMINATION MR CLINTON'S FIRST TO THE FED COMES AS FED OFFICIALS ARE CONTEMPLATING WHEN TO INCREASE SHORTTERM INTEREST RATES MR KENEN 61 YEARS OLD IS A PROFESSOR OF ECONOMICS AND INTERNATIONAL FINANCE AT PRINCETON WHERE HE HAS BEEN ON THE FACULTY SINCE 1971 HE PREVIOUSLY TAUGHT AT COLUMBIA UNIVERSITY AND SERVED AS PROVOST FROM 1969 TO 1971 HE EARNED HIS DOCTORATE AT HARVARD UNIVERSITY AND IS A SPECIALIST IN INTERNATIONAL ECONOMICS AND EXCHANGE RATES MR OOMS 59 IS RESEARCH DIRECTOR OF THE COMMITTEE FOR ECONOMIC DEVELOPMENT A NONPROFIT PUBLICPOLICY THINKTANK IN WASHINGTON BACKED BY BUSINESS ACADEMIA AND LABOR HE WAS CHIEF ECONOMIST AT THE HOUSE BUDGET COMMITTEE FROM 1981 TO 1991 AND BEFORE THAT WAS CHIEF ECONOMIST AT THE WHITE HOUSE BUDGET OFFICE IN THE CARTER ADMINISTRATION MR OOMS'S DOCTORATE IS FROM YALE UNIVERSITY MUCH OF HIS EXPERTISE IS IN FISCAL POLICY ALTHOUGH THERE IS STILL A CHANCE THAT THE WHITE HOUSE WILL WIDEN THE SEARCH PERHAPS TO LOOK FOR A WOMAN OR MINORITY CANDIDATE ADMINISTRATION ECONOMIC OFFICIALS CURRENTLY EXPECT THE PRESIDENT TO NOMINATE ONE OF THE TWO MEN MR KENEN HAS COMPLETED A ROUND OF INTERVIEWS WITH THE ADMINISTRATION'S TOP ECONOMIC OFFICIALS AND MR OOMS HAS NEARLY COMPLETED HIS THE TWO OTHER CANDIDATES ON A LIST ASSEMBLED BY MR CLINTON'S ECONOMIC ADVISERS DECLINED TO BE CONSIDERED THEY ARE ALICE RIVLIN DEPUTY DIRECTOR OF THE WHITE HOUSE BUDGET OFFICE AND GEORGE PERRY A FELLOW AT THE BROOKINGS INSTITUTION DESPITE THE EFFORTS OF SOME OF MR CLINTON'S ECONOMIC ADVISERS TO SPEED THE SELECTION PROCESS THE FED GOVERNOR ISN'T LIKELY TO BE CONFIRMED BY THE SENATE IN TIME FOR FED OFFICIALS' IMPORTANT EARLY FEBRUARY MEETING AT THAT MEETING THEY ARE TO SET THEIR GOALS FOR THE NEXT SIX MONTHS MR CLINTON ISN'T GUARANTEED ANOTHER CHANCE TO APPOINT A FED GOVERNOR UNTIL VICE CHAIRMAN DAVID MULLINS'S TERM AS A BOARD MEMBER EXPIRES IN JANUARY 1996 BUT MR CLINTON MAY DESIGNATE ANY SITTING GOVERNOR AS VICE CHAIRMAN IN JULY 1995 9312270040 931227 BUSINESS BRIEF ZOLL MEDICAL CONCEDES FDA ORDERED CHANGES IN ITS DEFIBRILLATOR PRODUCTION BURLINGTON MASS ZOLL MEDICAL CORP BELATEDLY CONCEDED THAT THE FOOD AND DRUG ADMINISTRATION HAS ISSUED A WARNING LETTER CRITICIZING OPERATIONS IN THE COMPANY'S DEFIBRILLATOR MANUFACTURING THE LETTER ORDERS CHANGES IN ZOLL'S PRACTICES OF KEEPING RECORDS REGARDING PARTS MANUFACTURING PROCESSES ENGINEERING CHANGES AND COMPLAINTS THE FDA LETTER WHICH WAS WRITTEN DEC 10 BUT DISCLOSED ON THURSDAY BY ZOLL SAYS THE FDA IS EVALUATING OTHER ISSUES INCLUDING RADIOFREQUENCY INTERFERENCE AND BATTERY PROBLEMS WITH ZOLL'S DEFIBRILLATORS WHICH ARE ELECTRICAL DEVICES USED IN EMERGENCIES TO RESTORE HEART RHYTHMS THE FDA ALSO SAID IT WILL ADVISE FEDERAL AGENCIES THAT IT RECOMMENDS AGAINST AWARDING CONTRACTS FOR ZOLL DEFIBRILLATORS AND THAT EXPORTAPPROVAL REQUESTS WILL BE DENIED UNTIL THE PROBLEMS ARE STRAIGHTENED OUT ZOLL SAID IT DOESN'T BELIEVE FIXING THE PROBLEMS WILL HAVE A MATERIAL EFFECT ON ITS FINANCIAL CONDITION ROLF STUTZ PRESIDENT OF ZOLL SAID THE COMPANY EXPECTS TO HAVE THE PROBLEMS STRAIGHTENED OUT BY THE MIDDLE OF FEBRUARY HE NOTED THAT ZOLL IS STILL ALLOWED TO SELL THE PRODUCTS AND SAID IT ISN'T CURRENTLY BIDDING FOR ANY GOVERNMENT CONTRACTS THAT WOULD BE AFFECTED BY THE FDA ACTION HE ALSO SAID THAT ZOLL DOESN'T BELIEVE ITS DEFIBRILLATORS HAVE ANY UNUSUAL BATTERY PROBLEMS OR RADIOINTERFERENCE PROBLEMS ALTHOUGH ONE MILITARY CUSTOMER ASKED IT TO DEVELOP A RADIOSHIELDED MODEL IN TRADING ON THE NASDAQ STOCK MARKET ZOLL CLOSED AT 2825 A SHARE DOWN 175 ZOLL HAS BEEN A HIGH FLYER THIS YEAR IN PART BECAUSE A BIG RIVAL DEFIBRILLATOR MAKER ELI LILLY CORP'S PHYSIOCONTROL UNIT WAS FORCED TO HALT SHIPMENTS BECAUSE OF MANUFACTURING PROBLEMS ON THURSDAY LILLY ANNOUNCED THAT IT HAD RECEIVED PERMISSION FROM THE FDA TO RETURN ITS EXTERNAL DEFIBRILLATORS TO THE MARKETPLACE EARLIER THIS MONTH A HEARD ON THE STREET COLUMN IN THIS NEWSPAPER SAID THAT THE FDA WAS INVESTIGATING ZOLL'S MANUFACTURING MR STUTZ SAID THE COMPANY DIDN'T DISCLOSE THE FACT THAT THE FDA HAD SENT A WARNING LETTER UNTIL LAST WEEK BECAUSE IT TOOK US A WHILE TO MAKE SURE WE UNDERSTOOD IT 9312270038 931227 GLOBAL VIEW GEORGE MELLOAN IS ON VACATION 9312270037 931227 CREDIT MARKETS POLITICIANS ARE MOBILIZING TO DERAIL BAN ON MUNI UNDERWRITERS' CAMPAIGN GIFTS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AT FIRST IT LOOKED AS IF WASHINGTON REGULATORS WOULD HAVE NO PROBLEM PUSHING THROUGH A NEW RULE THAT WOULD BAR WALL STREET FROM SHOWERING STATE AND LOCAL POLITICIANS WITH CAMPAIGN GIFTS WHO COULD ARGUE WITH A RULE THAT WOULD PURIFY THE MUNICIPALBOND BUSINESS MAKING SURE THAT ANY FIRM SELECTED TO MANAGE A BOND OFFERING HADN'T BEEN HANDING OUT WADS OF MONEY AND CLOUDING THE JUDGMENT OF ELECTED OFFICIALS LOTS OF POLITICIANS THAT'S WHO EVEN AS THE BIG WALL STEET FIRMS PROFESS TO HAVE STOPPED GIVING MANY STATE AND LOCAL OFFICIALS SAY THEY HAVEN'T STOPPED TAKING SUCH CAMPAIGN CONTRIBUTIONS AND THEY STILL WANT THEM SUCH RESISTANCE COULD UNDERMINE THE REGULATORY PUSH ONE OF THESE ANGRY POLITICIANS IS NORTH CAROLINA'S FIVETERM TREASURER HARLAN E BOYLES THE REGULATORS' EFFORTS ARE LAUGHABLE HE DECLARED IN A RECENT LETTER TO SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT THE RULE IS BEING RAMMED DOWN OUR THROATS HE ADDED IN AN INTERVIEW IN FLORIDA PALM BEACH COUNTY COMMISSIONER CAROL ROBERTS IS RALLYING COUNTY OFFICIALS ACROSS THE STATE TO SUPPORT A BOYCOTT OF BIG BOND FIRMS THAT HAVE VOWED TO HALT MUNICIPAL CAMPAIGN GIVING IT'S NOT A BLACK OR WHITE ISSUE IT'S A GREEN ISSUE SAYS MICHAEL HIGHTOWER VICE CHAIRMAN OF THE BOARD OF COMMISSIONERS OF FULTON COUNTY GA POPULATION 800000 HE'S ALSO THIRD VICE PRESIDENT OF THE NATIONAL ASSOCIATION OF COUNTIES WHICH THIS MONTH URGED THE SEC TO DELAY REGULATORY ACTION ON CONTRIBUTIONS THE REGULATORS ARE TRYING TO KILL A GNAT WITH A SLEDGEHAMMER SAYS NORTH CAROLINA'S ASSISTANT TREASURER TOM CAMPBELL HE SAYS THE PROPOSED RULE WOULD PUT A SERIOUS DENT IN CAMPAIGN FINANCES FOR OFFICIALS SUCH AS MR BOYLES SINCE A CAMPAIGN FOR STATE TREASURER IN NORTH CAROLINA COSTS AT LEAST 500000 WHY ALL THE FUSS UNTIL RECENTLY MANY LOCAL AND STATE OFFICIALS DIDN'T REALIZE HOW DEEPLY THE PROPOSED RULE WOULD CUT INTO CAMPAIGNFUNDING SOURCES SAYS MARK D SCHWARTZ A MUNIBOND LAWYER AND FORMER BANKER AT PRUDENTIAL SECURITIES INC GIVING BY UNDERWRITERS IS WHAT FINANCES STATE AND LOCAL CAMPAIGNS CAMPAIGN GIVING BY MUNI UNDERWRITERS BECAME AN ISSUE EARLIER THIS YEAR AS CONFLICTOFINTEREST SCANDALS ERUPTED IN VARIOUS STATES WALL STREET FELT PRESSURE TO DO SOMETHING THE MUNICIPAL SECURITIES RULEMAKING BOARD A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT IS PREPARING A PROPOSAL THAT WOULD COMPEL SECURITIES FIRMS IF THEY THEIR POLITICAL ACTION COMMITTEES OR THEIR MUNI PROFESSIONALS MAKE A POLITICAL CONTRIBUTION TO WAIT TWO YEARS BEFORE UNDERWRITING ANY MUNIBOND SALES IN THAT JURISDICTION THE PLAN WOULD EXEMPT 250 EACH FOR EMPLOYEES' DONATIONS IN ELECTIONS IN WHICH THEY ARE ELIGIBLE TO VOTE THE MSRB IS SUPPOSED TO PASS THE PROPOSAL ALONG NEXT MONTH TO THE SEC WHICH AIMS TO MAKE IT A RULE BY THE END OF APRIL MEANWHILE THE CROSSFIRE IS ESCALATING ONE MUNIMARKET LAWYER SUGGESTS THAT IF A SECURITIES FIRM'S MUNICIPALDEPARTMENT EMPLOYEES ARE BARRED FROM GIVING AS THE PLAN ENVISIONS POLITICIANS MIGHT SIMPLY ASK FOR CONTRIBUTIONS FROM ANOTHER DEPARTMENT OF THE SAME FIRM MS ROBERTS SHRUGS OFF THE CRITICISM AND SAYS SHE WILL STILL ACCEPT DONATIONS FROM UNDERWRITERS WHETHER OR NOT THE RULE IS PASSED SHE SAYS CAMPAIGN COSTS ARE PROHIBITIVE DURING HER 1990 CAMPAIGN SHE ESTIMATES SHE GOT ABOUT 14000 FROM UNDERWRITERS A CAMPAIGN COSTS ABOUT 100000 AND SHE FACES ANOTHER ONE NEXT YEAR ABOUT HALF THE TOTAL WILL GO FOR NEWSPAPER AND BROADCAST ADVERTISING LIKE MESSRS HIGHTOWER AND BOYLES MS ROBERTS SAYS SHE ISN'T AGAINST CAMPAIGNFINANCE REFORM BUT ASKS WHY REGULATORS SHOULD LIMIT THE NEW RULE TO LOCAL OFFICIALS AND SAY THEY ARE UNTRUSTWORTHY THE RULE WOULDN'T COVER FEDERAL OFFICIALS SHE POINTS OUT AND THE LARGEST ISSUER OF BONDS IS THE FEDERAL GOVERNMENT CLARENCE ANTHONY COMPLAINS THAT THE RULE COULD FORCE HIM FROM HIS POSITION AS MAYOR OF SOUTHBAY FLA POPULATION 4500 A HAMLET IN THE EVERGLADES EVEN THOUGH THERE IS NO APPARENT CONFLICT OF INTEREST HE HAS BEEN MAYOR FOR MORE THAN A DECADE AND EARNS LESS THAN 4000 A YEAR FOR THE POST HE ALSO WORKS AT WILLIAM R HOUGH & CO IN ST PETERSBURG A MUNI UNDERWRITER EVEN THOUGH THE CITY HASN'T SOLD A SINGLE BOND IN ALL THE TIME HE'S BEEN MAYOR MR ANTHONY SAYS HE WOULD BE COMPELLED TO QUIT AS MAYOR UNDER THE PROPOSED RULE SOME UNDERWRITERS ALSO OPPOSE THE RULE RAYMOND MCCLENDON PRESIDENT OF PRYOR MCCLENDON COUNTS & CO PHILADELPHIA SAYS HE HAS SIGNIFICANT CONCERNS ABOUT THE CONSTITUTIONALITY OF THE RULE IF IT PASSES IN THE PRESENT FORM HE SAYS THEN I WILL HAVE TO GET OUT OF THIS BUSINESS OF MUNI UNDERWRITING AND NOT BECAUSE IT WOULD BE HARDER TO GET BUSINESS MR MCCLENDON FELT SO STRONGLY THAT HE TALKED WITH CAROLIE SMITH PRESIDENT OF SMITH MITCHELL INVESTMENT GROUP INC OF SEATTLE ABOUT STARTING AN INFORMAL LOBBYING GROUP TO BE NAMED COALITION TO ENACT FAIR MUNICIPAL SECURITIES PRACTICES MS SMITH CALLS THE PROPOSED RULE UNACCEPTABLE BUT PLANS FOR THE NEW GROUP WERE SHELVED BECAUSE THERE WAS ALREADY SO MUCH OF AN OUTCRY BY GROUPS REPRESENTING STATE OFFICIALS AS TIME PASSES RESISTANCE IS BECOMING MORE ORGANIZED LAST WEEK A GROUP OF NATIONAL ORGANIZATIONS REPRESENTING LOCAL AND STATE OFFICIALS WROTE TO MR LEVITT ASKING HIM TO DELAY REGULATORY ACTION FOR NOW SIGNERS OF THE LETTER INCLUDED THE NATIONAL LEAGUE OF CITIES THE NATIONAL GOVERNORS' ASSOCIATION THE NATIONAL ASSOCIATION OF COUNTIES THE GOVERNMENT FINANCE OFFICERS ASSOCIATION THE AMERICAN ASSOCIATION OF PORT AUTHORITIES AND THE NATIONAL ASSOCIATION OF STATE TREASURERS AMONG OTHERS THE NATIONAL LEAGUE OF CITIES TOLD THE SEC THE PROPOSED RULE WOULD IMPOSE SEVERE AND DISCRIMINATORY HARDSHIPS ON ANY STATE OR LOCAL OFFICIAL WHO SOUGHT TO RUN FOR FEDERAL OFFICE AGAINST AN INCUMBENT THE SEC SHOWS NO SIGN OF BACKING DOWN ON THURSDAY MR LEVITT COMMENTED THAT THE SEC HAS AMPLE REASON TO BELIEVE THAT THERE ARE SIGNIFICANT PROBLEMS WITH THE USE OF POLITICAL CONTRIBUTIONS TO OBTAIN BUSINESS IN THE MUNICIPALSECURITIES MARKET HE SAID EFFORTS TO THWART THE PUSH TO REDUCE CAMPAIGN GIVING BY UNDERWRITERS ARE COUNTER TO OUR COMMON GOAL OF PRESERVING THE INTEGRITY AND PUBLIC CONFIDENCE IN THE MARKET BUT EVEN IF THE SEC ADOPTS A NEW RULE THE BATTLE MAY BE FAR FROM OVER SOMEBODY IS GOING TO SUE THE SEC SAYS MSRB CHAIRMAN DAVID CLAPP A PARTNER AT GOLDMAN SACHS & CO SUCH LITIGATION MIGHT CHALLENGE THE RULE'S CONSTITUTIONALITY THE MSRB EXPECTS THAT ANY SUCH LEGAL CHALLENGE WILL FAIL BUT MUNICIPAL OFFICIALS HAVE SOME POWERFUL AMMUNITION IN THE TOWER AMENDMENT TO FEDERAL SECURITIES LAW BORN AFTER A SIMILAR SCANDALINDUCED REGULATORY PUSH IN THE MUNI BUSINESS IN THE 1970S IT SHARPLY LIMITS WHAT THE MSRB AND SEC CAN DO TO REGULATE THE MUNI MARKET IN DEFERENCE TO STATES' RIGHTS THE MESSAGE MR BOYLE WROTE IN HIS LETTER TO MR LEVITT IS HANDS OFF THE ISSUERS OF MUNICIPAL BONDS PRICES OF US TREASURY NOTES AND BONDS ENDED A QUIET PREHOLIDAY SESSION STEADY TO SLIGHTLY HIGHER TRADING ENDED EARLY AT 2 PM EST ON THURSDAY AHEAD OF THE CHRISTMAS HOLIDAY THE US BOND MARKETS WERE CLOSED ON FRIDAY THE BENCHMARK 30YEAR TREASURY BOND ROSE LESS THAN 1/8 POINT TO 100 14/32 TO YIELD 621 VIRTUALLY UNCHANGED FROM THE YIELD ON WEDNESDAY A FLOOD OF ECONOMIC DATA WAS RELEASED THURSDAY BUT IT WAS LARGELY IGNORED BY TRADERS AND INVESTORS EARLY IN THE SESSION THE COMMERCE DEPARTMENT REPORTED THAT DURABLEGOODS ORDERS GAINED 20 DURING NOVEMBER IN LINE WITH MOST FORECASTS PERSONAL INCOME MEANWHILE ROSE 06 AND SPENDING GAINED 04 WHILE THE DATA ALL DEPICTED AN ECONOMY THAT HAS PICKED UP STEAM WHAT THE MARKET IS NOW WAITING FOR IS EVIDENCE OF WHAT MAY HAPPEN IN THE FIRSTQUARTER SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC SEPARATELY STANDARD & POOR'S CORP RAISED ITS RATING ON PHILADELPHIA'S GENERALOBLIGATION BONDS AND VARIOUS RELATED CITY DEBT TO DOUBLEB FROM SINGLEB THAT UPGRADE AFFECTS ABOUT 105 BILLION OF UNINSURED DEBT OUTSTANDING THE RATINGS REVISION REFLECTED THE CITY'S ABILITY TO BALANCE ITS 1993 BUDGET WITHOUT OUTSIDE AID AND PROSPECTS FOR A BALANCED BUDGET IN 1994 S&P SAID THE OUTLOOK REMAINS POSITIVE INDICATING THE POTENTIAL FOR AN INVESTMENTGRADE RATING IN THE INTERMEDIATE TERM S&P ADDED FURTHER RATINGS IMPROVEMENT HINGES ON THE CITY'S ABILITY TO INSTITUTIONALIZE FISCAL REFORMS THAT CAN PROVIDE ONGOING STRUCTURAL BUDGET BALANCE 9312270036 931227 SMALL CURRENCIES ARE EXPECTED TO RISE IN '94 UNITS OF FRANCE SWEDEN AND SOME ASIAN NATIONS ARE SEEN AS BIG GAINERS BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALL CURRENCIES COULD GAIN STRONGLY IN 1994 AS DEEPENING RECESSIONS IN GERMANY AND JAPAN PULL MONEY OUT OF THE MARK AND YEN MANAGERS OF MAJOR US CURRENCY FUNDS SAY THE DOLLAR RIDING ON AN UNCERTAIN US RECOVERY IS EXPECTED TO STRENGTHEN SLIGHTLY OVER THE YEAR BUT MORE REMARKABLE GAINS ARE EXPECTED FOR EUROPEAN CURRENCIES SUCH AS THE SWEDISH KRONA AND FRENCH FRANC WHICH WERE STOMPED ON BY THE MARK IN 1993 AND ARE SEEN AS READY FOR A COMEBACK AND SOUTHEAST ASIAN CURRENCIES MANY OF WHICH ARE LINKED TO THE DOLLAR ARE EXPECTED TO RISE WITHIN THEIR DOLLAR BANDS AND FOLLOW THE DOLLAR HIGHER SOME OF THE SMALL CURRENCIES' 1994 GAINS WILL BE SIMPLE MARKET CORRECTIONS FOLLOWING A YEAR DURING WHICH THE YEN JUMPED ON TRADE CONSIDERATIONS AND HIGH GERMAN INTEREST RATES SUCKED MONEY INTO THE MARK FROM ALL OVER EUROPE BUT THE FUND MANAGERS SAY THEY'RE ALSO ATTRACTED BY SOUND ECONOMIC POLICIES IN SOME SMALLER INDUSTRIALIZED NATIONS AS WELL AS A GATT TREATY THAT WILL OPEN WORLD MARKETS TO SMALLER NATIONS' PRODUCTS AGRICULTURAL EXPORTER NEW ZEALAND IS A NOTABLE BENEFICIARY OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND THE COUNTRY ALSO BOASTS LOW INFLATION A SOLID FISCAL POSITION AND ADVANTAGEOUS INTEREST RATES THE NEW ZEALAND DOLLAR POPULARLY KNOWN AS THE KIWI IS A FUNDMANAGER FAVORITE THE KIWI IS A LITTLE GEM SAYS EZRA ZASK OF EZRA ZASK ASSOCIATES IN NORFOLK CONN A FUND WITH 120 MILLION UNDER MANAGEMENT NEW ZEALAND IS ONE OF THE STRONGEST ECONOMIES IN THE WORLD NOW THE PACIFIC RIM IN GENERAL IS EXPECTED TO CONTINUE BOOMING IN 1994 AND THAT SHOULD MEAN GAINS FOR ALMOST EVERY ASIAN CURRENCY EXCEPT THE YEN WITH THE MALAYSIAN AND SINGAPORE DOLLARS LEADING FUND MANAGERS' LISTS BOTH GAINED IN 1993 THE US DOLLAR IS NOW AROUND M25510 COMPARED WITH M26150 AT THE START OF THE YEAR AND AT S15930 COMPARED WITH S16400 ASIAN CURRENCIES HAVE TRADED HIGHER UNNOTICED OVER THE PAST YEAR AND THAT WILL CONTINUE SAYS MARTHA EDEN VICE PRESIDENT OF HANSEATIC CORP IN ALBUQUERQUE NM THIS IS A VERY HIGH GROWTH AREA THEY DON'T HAVE THE STRUCTURAL PROBLEMS THAT WE DO BUT BASE RATES IN JAPAN ARE AT A POSTWAR LOW OF ABOUT 175 AND ECONOMIC DISARRAY THERE ALONG WITH A GOVERNING COALITION THAT MAY BE TOO FRAGILE TO IMPLEMENT STIMULUS MEASURES MAKE THE YEN A POOR BET FOR 1994 THE FUND MANAGERS SAY MUCH OF THE YEN'S STRENGTH IN 1993 WAS LINKED TO CLINTON ADMINISTRATION COMMENTS EARLY IN THE YEAR WELCOMING A STRONG YEN AS A TONIC FOR THE US TRADE DEFICIT THAT WAS TAKEN BY THE MARKET AS A GREEN LIGHT TO SELL DOLLARS FOR YEN WITHOUT FEAR OF FEDERAL RESERVE INTERVENTION BUT THE STRONG YEN HAS PUT HEAVY PRESSURE ON JAPANESE CORPORATE PROFITS AND THE US IS SENSITIVE ENOUGH TO JAPAN'S DELICATE ECONOMIC AND POLITICAL SITUATION TO LEAVE THE YEN ALONE IN 1994 THE FUND MANAGERS PREDICT ECONOMIC PROBLEMS IN GERMANY ARE ALSO EXPECTED TO WEIGH ON THE MARK IN 1994 AS THE COSTS OF REUNIFICATION MOUNT WIDENING GOVERNMENT DEFICITS AND MAJOR COMPANIES RESTRUCTURE AND SEND JOBS ELSEWHERE LOCAL REGIONAL AND NATIONAL ELECTIONS SET FOR 1994 ALSO THREATEN POLITICAL INSTABILITY ESPECIALLY IN LIGHT OF GROWING UNEMPLOYMENT THAT DISMAL OUTLOOK IS EXPECTED TO DRAG DOWN THE MARK EVEN IF THE DEUTSCHE BUNDESBANK CUTS RATES MORE SLOWLY THAN EXPECTED BUT MARK WEAKNESS WILL BENEFIT THE SMALLER CURRENCIES IN EUROPE PARTICULARLY THOSE THAT LOST GROUND DURING LAST SUMMER'S CRISIS IN THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM SOME OF THE EUROPEAN CURRENCIES THAT WERE GIVEN SHORT SHRIFT THIS YEAR CORE CURRENCIES LIKE FRANCE DENMARK SPAIN AND PORTUGAL SHOULD DO WELL AS LONG AS THEY'RE WILLING TO FOLLOW MORE AGGRESSIVE RATE CUTS THAN THE BUNDESBANK SAID MR ZASK IF THEY DO THEIR STOCK AND BOND MARKETS SHOULD DO EXTREMELY WELL AND CURRENCIES SHOULD FOLLOW 9312270035 931227 CREDIT RATINGS AMERICAN HEALTH PROPERTIES INC DENVER STANDARD & POOR'S CORP SAID IT RAISED ITS IMPLIED SENIOR RATING ON THIS REAL ESTATE INVESTMENT TRUST TO TRIPLEBMINUS FROM DOUBLEBPLUS CITING IMPROVED FINANCIAL CONDITION THE UPGRADE IS BASED ON THE TRUST'S STABLETOIMPROVING PORTFOLIO PERFORMANCE THE RATING AGENCY SAID S&P SAID AMERICAN HEALTH'S HEALTHCAREFACILITY OPERATOR BASE HAS IMPROVED AND THAT ITS MANAGEMENT IS FOCUSING ON ACQUISITIONS S&P SAID THE TRUST HAS RESTORED ITS DIVIDEND GROWTH AND HAS GAINED FINANCIAL FLEXIBILITY FROM A JULY EQUITY OFFERING WHICH RAISED 80 MILLION S&P ALSO NOTED THE COMPLETION EARLIER THIS MONTH OF A NEW 80 MILLION THREEYEAR CREDIT LINE 9312270034 931227 BUSINESS BRIEF CHEVRON CORP STAKE IN OFFSHORE FIELDS SOLD TO INDONESIA PETROLEUM UNIT CHEVRON CORP SAN FRANCISCO SOLD ITS 175 STAKE IN CERTAIN INDONESIAN OIL AND GAS FIELDS IN THE SOUTH NATUNA SEA TO A UNIT OF JAPAN'S INDONESIA PETROLEUM LTD WHICH ALREADY HELD AN EQUAL STAKE IN THE OFFSHORE PROPERTIES THE TRANSFER WILL TAKE PLACE AT THE END OF THE YEAR BUT CHEVRON DIDN'T DISCLOSE THE TERMS CONOCO INDONESIA INC AND TEXACO INC HOLD THE REMAINING 65 OF THE PROPERTIES CHEVRON SAID THE SALE WAS APPROVED BY INDONESIA'S STATEOWNED OIL COMPANY PERTAMINA 9312270033 931227 ENTERPRISE SOME ENTREPRENEURS WILL BE GLAD TO SEE THE END OF 1993 A WALL STREET JOURNAL NEWS ROUNDUP AN AUTOPARTS MAKER RAN AFOUL OF FEDERAL SAFETY REGULATORS A FORMER LAW FIRM PARTNER STRUGGLED TO RUN A RESTAURANT A HIGHTECH PIONEER FACED A SHAREHOLDERS' REVOLT OVER LOSSES WALL STREET JOURNAL STORIES ABOUT THOSE PEOPLE AND OTHERS ILLUMINATED THE DREAMS AND DISASTERS OF ENTREPRENEURS THIS YEAR WITH 1994 AT HAND REPORTERS CHECKED UP ON HOW WELL SOME STORY SUBJECTS HAVE FARED HERE ARE BRIEF UPDATES HANGING ON BY HIS FINGERNAILS IS A FINGERPRINTTECHNOLOGY INVENTOR DISSIDENT SHAREHOLDERS IN FINANCIALLY TROUBLED FINGERMATRIX INC ARE STILL TRYING TO OUST FOUNDER MICHAEL SCHILLER BUT FOR NOW HE REMAINS CHAIRMAN OF THE PIONEER IN FINGERPRINTRECOGNITION DEVICES THE DISSIDENTS CONCERNED ABOUT THE COMPANY'S 52 MILLIONPLUS IN LOSSES SINCE 1976 WERE THREATENING A PROXY FIGHT LAST MAY THEY ALREADY HAD SUED THE COMPANY OVER ITS STOCK SALES TO MR SCHILLER ALLEGEDLY AT BELOWMARKET PRICES MR SCHILLER SUBSEQUENTLY RESCINDED HIS STOCK PURCHASES AND THE COMPANY NOW BASED IN DOBBS FERRY NY HAS FILED FOR PROTECTION FROM ITS CREDITORS UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE DISSIDENTS WHO NOW CLAIM TO CONTROL A MAJORITY OF THE SHARES SAY THEY STILL WANT A NEW CHAIRMAN IF MR SCHILLER HASN'T STEPPED DOWN BY NEXT MONTH ACTIVISTS WILL ATTEMPT TO GET THE BANKRUPTCY COURT IN WHITE PLAINS NY TO REMOVE HIM SAYS GORDON MOLESWORTH A GREEN VALLEY ARIZ SHAREHOLDER WHO LEADS THE DISSIDENTS LAST MAY MR SCHILLER TURNED DOWN REQUESTS FOR AN INTERVIEW LAST WEEK HE DIDN'T RETURN CALLS SEEKING COMMENT A LAW FIRM DROPOUT STRUGGLES HARDER AT HER CHICAGO CAFE VIRGINIA LEWEY A FIRSTTIME ENTREPRENEUR OPENED THE CAFE LOGAN BEACH LAST JULY IN THE LOGAN SQUARE SECTION OF NORTHWEST CHICAGO SHE HAD GIVEN UP A SIXFIGURE INCOME AS A LAW PARTNER IN HOPES THAT SHE COULD ENJOY A FREER LIFESTYLE INCLUDING AFTERNOON NAPS BUT SHE SOON WAS CAUGHT UP IN A NEW DAILY GRIND AND SEEMINGLY ENDLESS HOURS BEHIND THE COUNTER NOW MS LEWEY IS MORE BELEAGUERED THAN BEFORE HER BEST EMPLOYEE MARY LOU RAIZ LEFT THIS FALL FOR A BETTERPAYING JOB MS LEWEY SAYS THE CAFE'S AVERAGE DAILY SALES HAVE ONLY REACHED 293 STILL SHY OF HER PROJECTED BREAKEVEN LEVEL OF 300 SO ON TOP OF HER INITIAL 28000 INVESTMENT SHE HAS HAD TO PUMP A FURTHER 3300 INTO THE BUSINESS MS LEWEY STILL HOPES THAT SHE EVENTUALLY WILL TAKE HOME 36000 A YEAR FROM THE BUSINESS MEANWHILE SHE IS PRACTICING LAW ON THE SIDE EARNING ABOUT 1000 A MONTH AND CATCHING FEW AFTERNOON NAPS TYTRONICS'S TROUBLES HAVEN'T ENDED AFTER ALL TYTRONICS INC A WALTHAM MASS MAKER OF ANALYTICAL INSTRUMENTS SEEMED ON THE BRINK OF RECOVERY IN MAY AFTER LAYING OFF TWO OF ITS 13 EMPLOYEES IN 1990 AND SLASHING REMAINING WORKERS' SALARIES BY 20 THE COMPANY WAS ENJOYING A SALES SURGE JACK WOLFE PRESIDENT THOUGHT THE SURGE WAS SUSTAINABLE HE THOUGHT WRONG IN THE FIRST HALF OF FISCAL 1994 ENDED OCT 31 SALES DECLINED SLIGHTLY AND PROFITS SHRANK SIGNIFICANTLY FROM YEAREARLIER LEVELS MR WOLFE SAYS SO THE COMPANY AFTER RESTORING THE SALARY CUTS RECENTLY SLASHED THEM ANEW BY 20 MR WOLFE BLAMES A SOFT MARKET ESPECIALLY IN EUROPE AND JAPAN THIS COMPANY GOT INTO HOT WATER OVER HOT OIL IN FEBRUARY PHILATRON INTERNATIONAL INC IN SANTA FE SPRINGS CALIF SEEMED ON THE VERGE OF BREAKING INTO A NEW MARKET PHILATRON CLAIMED SAFETY AND PERFORMANCE ADVANTAGES FOR A NEW KIND OF COILED AIRBRAKE HOSE FOR HEAVYDUTY TRUCKS THE NEW HOSE WAS SELLING BRISKLY TO TRUCK DRIVERS WHEN THE PRODUCT FAILED TO MEET A FEDERAL SAFETY STANDARD CONCERNING RESISTANCE TO HOT OIL THAT MIGHT SPLATTER ON THE HOSE COMPANY OFFICIALS BELIEVED THAT IT MIGHT WIN AN EXEMPTION BUT PHILATRON RAN INTO HEAVY OPPOSITION FROM COMPETING HOSE MAKERS AND TRUCK MANUFACTURERS THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION AFTER RULING THAT THE 45000 HOSES ALREADY SOLD BY PHILATRON COULD REMAIN ON THE ROAD PERMANENTLY BLOCKED FURTHER SALES IN JULY PHIL RAMOS JR PHILATRON'S FOUNDER SAYS HE WAS APPALLED AND EXTREMELY DISAPPOINTED BY THE RULING HE SAYS HE WANTS THE MATTER REVIEWED BY THE US TRANSPORTATION SECRETARY MEANWHILE THE COMPANY PLANS NEW PRODUCTS ALBEIT AT HIGHER PRICES THAT MEET THE HOTOIL STANDARD FLEXIWATT'S SALES FALL SHORT PARTLY BECAUSE OF THE BIG BOYS THREEYEAROLD FLEXIWATT CORP IN ARLINGTON VA ONE OF MANY FIRMS TRYING TO TAP THE ENERGYCONSERVATION MOVEMENT HAWKS ELECTRONIC DEVICES THAT MAKE FLUORESCENT LIGHTING MORE EFFICIENT WE'RE SELLING ALL WE CAN MAKE FLEXIWATT PRESIDENT JOHN CLARK DECLARED LAST MAY AT THAT TIME HE PROJECTED SALES OF 10 MILLION TO 15 MILLION FOR 1993 THE FIRM'S FIRST FULL YEAR OF PRODUCTION BUT NOW MR CLARK SAYS SALES WON'T MEET THAT PROJECTION AN AUGUST ELECTRICAL FIRE AT THE COMPANY'S GAITHERSBURG MD FACTORY DESTROYED IMPORTANT TESTING EQUIPMENT FLEXIWATT ALSO HAD TROUBLE WITH A TAIWAN SUPPLIER OF TRANSFORMERS MOST IMPORTANT LARGER RIVALS SUCH AS MOTOROLA INC HAVE CAPTURED SOME MARKET SHARE THE BIG BOYS CRANKED UP THEIR VOLUME FASTER THAN WE ANTICIPATED MR CLARK SAYS BUT WITH THE BULK OF FLEXIWATT'S MANUFACTURING NOW UNDER WAY IN THE PHILIPPINES MR CLARK SAYS THE OUTLOOK FOR 1994 IS VERY POSITIVE UNDER A NEW BOSS THE SMALL BUSINESS ADMINISTRATION ENJOYS NEW CLOUT INVESTMENT BANKER ERSKINE BOWLES BECAME CHIEF OF THE FEDERAL AGENCY LAST MARCH AMID UNCERTAINTY THAT HE WOULD HAVE MUCH INFLUENCE AFTER ALL THE WHITE HOUSE ALL BUT IGNORED MOST PRIOR SBA CHIEFS YET DURING HIS FIRST NINE MONTHS MR BOWLES ENCOURAGED BY PRESIDENT CLINTON HAS HELPED PLACE SMALLBUSINESS ISSUES HIGH ON THE ADMINISTRATION'S AGENDA DURING THE DEBATE ON HEALTHCARE OVERHAUL FOR EXAMPLE MR BOWLES OFTEN HAS BEEN AT THE PRESIDENT'S SIDE MEETING WITH SMALLBUSINESS OWNERS MR BOWLES ALSO CONDUCTED HIS OWN SERIES OF TOWN MEETINGS THROUGHOUT THE US ON SMALLBUSINESS ISSUES ADMIRERS SAY HE HAS FURTHER BOLSTERED HIS EFFECTIVENESS BY PAYING CAREFUL HEED TO CONGRESSIONAL COMMITTEES AND TO SMALLBUSINESS LOBBYING GROUPS 9312270032 931227 YOUNG US AGENCY INCREASES EFFORTS IN DEVELOPING NONFOOD USES OF CROPS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A YOUNG FEDERAL AGENCY IS BOOSTING EFFORTS TO DEVELOP PRIVATE MARKETS FOR SUCH PRODUCTS AS LIPSTICK MADE FROM A SOUTHWESTERN DESERT SHRUB AND FURNITURE BUILT PARTLY OUT OF PEANUT HULLS THE SEMIINDEPENDENT AGENCY LOCATED IN THE AGRICULTURE DEPARTMENT BEARS THE TYPICALLY BUREAUCRATIC NAME OF THE ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION CENTER BUT ITS WORK IS FAR FROM TRADITIONAL IN THE COMING MONTHS IT WILL CONSIDER APPROVING MARKETPROMOTION SEED MONEY FOR SUCH CANDIDATES AS COTTON WASTE MATERIAL THAT IS DESIGNED TO ABSORB OIL SPILLS AND THEN DEGRADE ALONG WITH THE OIL AS BACTERIA EAT IT UP PROMOTING THE MARKET FOR SOPPING UP OIL SPILLS WITH WASTE WOOL IS ALREADY GETTING THE FEDERAL AID OTHER PROSPECTS INCLUDE THE USE OF DISSECTED HORSERADISH OR POTATOES TO REPLACE COSTLY BURNING OR CHEMICAL TREATMENT OF SOME WASTE WATER AND OILCONTAMINATING PHENOLS AND OTHER CHEMICALS OR CONSIDER ANIMAL BLOOD FROM MEAT PLANTS AS UNAPPEALING AS IT MAY SEEM IT MAY BE AN ENVIRONMENTALLY SOUND WAY TO ADD STRENGTH TO PAPER SUBSTITUTING FOR PETROLEUMBASED RESINS ANOTHER PROPOSAL WOULD CONVERT PEANUT SHELLS INTO PALLETS OR PARTICLE BOARD OR PERHAPS THE ANNUAL 300000 TONS OF PEANUT HULLS THAT GO TO SUCH PLACES AS LANDFILLS OR INCINERATORS WOULD INSTEAD BE USED WITH RECYCLED PLASTIC TO MAKE FURNITURE AND OTHER MOLDED PRODUCTS WHICH CAN BE RECYCLED LATER THIS IS ALL PART OF AN ATTEMPT TO FIND NEW MOSTLY INDUSTRIAL METHODS FOR EATING INTO THE PERSISTENT SURPLUSES OF OLD CROPS WHILE USUAL FARM POLICY HAS ENCOURAGED EXCESS CROP PRODUCTION DEVELOPMENT OF PROFITABLE NEW NONFOOD CROPS IS A BETTER APPROACH GARY JOLLIFF PROFESSOR OF CROP SCIENCE AT OREGON STATE UNIVERSITY SAID AT A FARM SUSTAINABILITY WORKSHOP IN CHICAGO THIS MONTH THE AGENCY HAS FINANCED 23 SUCH INNOVATIVE COMMERCIALIZATION APPROACHES SO FAR BUT THE DEMAND IS MUCH GREATER IN FISCAL 1993 WHICH ENDED ON SEPT 30 THE AARC RECEIVED 400 REQUESTS FOR FUNDING HELP ITS FISCAL 1994 BUDGET IS 93 MILLION MORE THAN TWICE THE 42 MILLION FOR FISCAL 1992 ITS FIRST YEAR THE CLINTON ADMINISTRATION ASKED FOR 20 MILLION FOR FISCAL 1994 AND IS EXPECTED TO SEEK 20 MILLION AGAIN FOR FISCAL 1995 ABOUT 9 MILLION HAS BEEN COMMITTED IN PROJECT APPROVALS LEVERAGING 25 MILLION IN PRIVATE MONEY COMPANIES GETTING THE FUNDS MUST REPAY THEM GIVING THE AGENCY A SHARE OF SALES REVENUES OR SOME STOCK OPTIONS SUCH PROJECTS USUALLY TAKE THREE TO SIX YEARS TO BECOME COMMERCIALLY VIABLE BUT PRIVATE LENDERS WITHOUT FEDERAL HELP TYPICALLY WANT A PAYOFF TO START IN TWO YEARS OR LESS OFFICIALS SAY IF WE HAD SOME HALFWAY DECENT RESOURCES WE COULD MAKE A SIGNIFICANT DENT IN THE POTENTIAL FOR DEVELOPING NEW MARKETS FOR CROPS SAID PAUL O'CONNELL THE COMMERCIALIZATION AGENCY'S DIRECTOR MAYBE EVEN GREATER POTENTIAL EXISTS TO CREATE MARKETS FOR RELATIVELY NEW US CROPS SUCH AS KENAF A PLANT THAT TRACES ITS ORIGINS OVER 4000 YEARS TO AFRICA IT CAN BE CHEAPLY CONVERTED TO PULP FOR PAPER MAKING AND MIGHT FIND USES FOR ANIMAL FEED CHICKEN LITTER MOLDED PACKAGING AND THE CONSTRUCTION OF SEWAGE SLUDGECOLLECTION FILTERS THE AARC SAYS MEANWHILE THE YOUNG AGENCY IS LOOKING AT MANY NEW MARKETS FOR ESTABLISHED CROPS SEEKING TO EMULATE THE SIZABLE ESTABLISHED MARKET FOR ETHYL ALCOHOL AND OTHER NONFOOD USES FOR CORN SOME FARM PRODUCTS SUCH AS WHEAT STRAW AND GRASSES ARE WORKING THEIR WAY INTO THE MARKET FOR FIBERBOARD AND CAN EVEN BE USED FOR WALLS OF HOMES MR O'CONNELL SAID WHEAT STRAW COULD PUT THE FIRST OF THE THREE LITTLE PIGS TO SHAME NOT ONLY WILL THE STRONG WALLS MADE FROM THE STRAW PANELS RESIST HUFFING AND PUFFING THEY DEADEN SOUND BETTER THAN WOOD GIVE OFF LESSDEADLY SMOKE FUMES IN A FIRE AND CONTAIN HEAT BETTER THE AGENCY SAYS UNDER ANOTHER FRESH APPROACH WOMEN MAY BE USING COSMETICS THAT OWE THEIR EXISTENCE TO DESERT SHRUBBERY THE AARC HAS ALREADY FUNDED THE TRANSFORMATION OF LESQUERELLA A SHRUB NATIVE TO THE SOUTHWEST INTO LIPSTICK AND POSSIBLY OTHER COSMETICS INDUSTRIAL NYLONS LUBRICANTS AND SPECIALTY PLASTICS 9312270029 931227 BUSINESS BRIEF DREYFUS CORP INVESTOR GROUP QUESTIONS ACQUISITION BY MELLON BANK A GROUP OF INVESTORS SAID IT ACQUIRED A 52 STAKE IN DREYFUS CORP AND IS QUESTIONING THE MUTUALFUND COMPANY'S AGREEMENT TO BE ACQUIRED BY MELLON BANK CORP THE INVESTORS INCLUDING MICHAEL F PRICE AND HEINE SECURITIES CORP SHORT HILLS NJ SAID THE 18 BILLION ACQUISITION AGREEMENT MAY NOT REFLECT THE FULL VALUE OF DREYFUS WHICH IS BASED IN NEW YORK THE GROUP SAID IT MAY TALK TO DREYFUS MANAGEMENT DIRECTORS AND SHAREHOLDERS ABOUT THE TRANSACTION THOMAS BUTCH A SPOKESMAN FOR PITTSBURGHBASED MELLON SAID THE BANK HASN'T BEEN APPROACHED BY THE INVESTOR GROUP BUT FREQUENTLY MEETS WITH MEMBERS OF THE INVESTMENT COMMUNITY AND WOULD BE OPEN TO A MEETING IF REQUESTED HE ADDED WE HAVE A MERGER AGREEMENT THAT HAS BEEN APPROVED BY THE BOARDS OF BOTH COMPANIES AND WE EXPECT TO COMPLETE IT 9312270028 931227 BUSINESS BRIEF EXXON CORP OIL GIANT AND OTHERS WIN RIGHTS OFF SAKHALIN ISLAND MAJOR US OIL COMPANIES INCLUDING EXXON CORP MOBIL CORP AND TEXACO INC SAID THEY WERE AWARDED RIGHTS THAT COULD LEAD TO OIL DEVELOPMENT OFF THE COAST OF RUSSIA'S SAKHALIN ISLAND THE AWARDS ARE AN EARLY BUT IMPORTANT STEP FOR THE COMPANIES AS THEY TRY TO ASSESS THE COMMERCIAL POTENTIAL OF THE AREA EXXON BASED IN IRVING TEXAS SAID IT WAS AWARDED THE RIGHTS TO EXPLORE AND DEVELOP TWO BLOCKS OF WATER BY A COMMITTEE MADE UP OF GOVERNMENT OFFICIALS FROM RUSSIA AND THE ISLAND EXXON SAID IT STILL MUST NEGOTIATE AN AGREEMENT ON HOW TO SHARE ANY POTENTIAL OIL AND GAS PRODUCTION IF IT CAN THEN EXPLORATORY OPERATIONS WILL BEGIN NEXT YEAR EXXON SAID A 5050 JOINT VENTURE OF MOBIL FAIRFAX VA AND TEXACO OF WHITE PLAINS NY WON RIGHTS FOR ONE BLOCK MOBIL SAID IT HAS A SIXYEAR PLAN TO EVALUATE THE POTENTIAL OF THE AREA 9312270027 931227 LEISURE & ARTS A PYONGYANG MODEL HOME BY NAMJU CHO TAEJON SOUTH KOREA TAEJON INTERNATIONAL EXPOSITION '93 WAS KNOWN AMONG KOREANS AS THE OLYMPICS OF SCIENCE AND TECHNOLOGY THE 93 PAVILIONS ASSEMBLED HERE ABOUT 93 MILES SOUTH OF SEOUL FROM AUGUST TO NOVEMBER WERE MOSTLY MONUMENTS TO THE WONDROUS INDUSTRIAL ACHIEVEMENTS OF KOREAN CONGLOMERATES SUCH AS SAMSUNG AND GOLDSTAR AND THEIR WESTERN BENEFACTORS IN THE EXPO'S EASTERNMOST CORNER HOWEVER STOOD A PAVILION APART THE NORTH KOREAN PAVILION RUN BY THE SEOULBASED KOREA TRADING CO IN MOST OF THE PAVILIONS MARKETING SQUADS PUT GUESTS ON HIGHTECH RIDES THROUGH SIMULATED UNIVERSES WITH ALL THE SUBTLETY OF A STAR WARS MOVIE A BETTER WORLD THROUGH BORROWED TECHNOLOGY COULD EASILY HAVE BEEN THE EXPO'S SLOGAN THE 30SQUAREYARD NORTHOFTHEBORDER DOMAIN MEANWHILE WAS PIECED TOGETHER WITH THE HELP OF A FEW DEFECTORS FROM THE NORTH FOR A PALTRY FOUR BILLION WON 5 MILLION ABOUT 13 OF WHAT GOLDSTAR SPENT ON ITS PALACE KOREA TRADING INHERITED THE SPACE DIRECT FROM THE NORTH KOREAN GOVERNMENT WHICH IN 1991 ACCEPTED THE EXPO ORGANIZERS' INVITATION TO MOUNT AN EXHIBIT PYONGYANG OFFICIALS DIDN'T RESPOND FURTHER HOWEVER AND SEVERAL DEADLINES PASSED ORGANIZERS THEN CHOSE KOREA TRADING WHICH HAD BEEN TRADING WITH THE NORTH AND CHINA THROUGH THIRD COUNTRIES TO TAKE THE SPACE THE SOUTH'S REUNIFICATION BOARD PITCHED IN WITH SOME GUIDANCE AND THE ARTIFACTS ON DISPLAY THE ARMIES OF SOUTHERN CONSUMERS WHO VISITED KOREA TRADING'S EXHIBITION FIRST SAW AN EXHIBIT OF ITEMS LABELED THE NECESSARIES OF LIFE IN NORTH KOREA EVERYTHING FROM SOAP AND POTS AND PANS TO TOYS CIGARETTES AND BEER THE MORE UPTODATE ITEMS WERE ON SALE INCLUDING HEALTH GUM MADE OF UNLISTED INGREDIENTS NORTH KOREAN COLA AND A REDCHECKED FLANNEL SHIRT OF THE TYPE APPARENTLY FAVORED BY LUMBERJACKS THE WORLD OVER THEY'RE SO BACKWARD THEY REMIND ME OF WHAT WE USED 20 YEARS AGO SAID ONE 57YEAROLD WOMAN CAREFULLY EXAMINING THE ITEMS WITH HER HUSBAND THE PAVILION'S AVERAGE DAILY INFLUX OF 20000 SEEMED MORE INTERESTED HOWEVER IN THE SILVER JEWELRY TOURIST BOOKS PHOTOS OF THE NORTH'S LEGENDARY MOUNT KUMKANG POSTCARDS STAMPS CERAMIC CUPS WALNUTS AND THE HEALTHY WINES FORTIFIED WITH GINSENG AND BLUEBERRIES ALCOHOL CONTENT 40 ON SALE IN ONE CORNER ALL IMPORTED FROM THE NORTH THROUGH CHINA OR HONG KONG DURING KOREA'S FIVEDAY THANKSGIVING HOLIDAY IN LATE SEPTEMBER THE PAVILION'S STOCK OF WINE AT 20 A BOTTLE WAS WIPED OUT AT THE OTHER CORNER OF THE PAVILION STOOD THREE BOOTHS SIMULATING THE INTERIOR OF AN UPPERMIDDLE CLASS PYONGYANG APARTMENT TO NO ONE'S SURPRISE A PORTRAIT OF NORTH KOREA'S GREAT LEADER KIM ILSUNG HUNG ON THE WALL OF THE MODEL HOME ALONGSIDE ONE OF HIS SON AND HEIRAPPARENT DEAR LEADER KIM JONGIL UNDERNEATH HOWEVER SAT SOMETHING PERHAPS UNKNOWN OUTSIDE THE KIMS' FIEFDOM A LOYALTY BOX CONTAINING A DUSTER CLOTH PERFUME AND OTHER CLEANING UTENSILS TO HELP DEVOTEES ALWAYS KEEP THE PORTRAITS CLEAN A LABEL EXPLAINS THE BEDROOM OF THE MODEL HOUSEHOLD FEATURED A WARDROBE WHERE KOREANS TYPICALLY KEEP THEIR FOLDAWAY MATTRESSES AND SHEETS STANDING FOUR INCHES OFF THE GROUND TO PROVIDE MORE LEG SPACE WHEN SLEEPING ACCORDING TO THE LABEL IN THE OTHER CORNER OF THE SMALL ROOM WAS A BLACK MANUAL SEWING MACHINE AND WORN ELECTRIC FAN THE TV ROOM WAS THE MOST INTIMIDATING OF THE THREE ROOMS WITH THE TWO LEADER PORTRAITS PLUS A SPEAKER ATTACHED TO THE WALL IT IS THROUGH SPEAKERS LIKE THESE THAT THE CENTRAL RADIO STATION SPREADS ITS VERSION OF REALITY TO EVERY HOUSEHOLD WITHOUT EXCEPTION BESIDE THE 20INCH COLOR TV MADE WITH JAPANESE PARTS BY A NORTH KOREAN COMPANY CALLED JINDALLAE AZALEA WAS A VINTAGE JAPANESEMADE PORTABLE CASSETTE PLAYER AND A MAKEUP TABLE WITH A FEW NORTHERNMADE CREAMS THE FINAL ROOM WAS A TRADITIONAL KOREAN KITCHEN WITHOUT ANY OF THE HOME APPLIANCES SOUTHERNERS TAKE FOR GRANTED ALONGSIDE A WASHSTAND OF UNPOLISHED CONCRETE AND A COALBURNING COOKING DEVICE STRAIGHT FROM THE 19TH CENTURY THE ELECTRIC PRESSURE COOKER FOR RICE ALMOST LOOKED OUT OF PLACE THE ANTICOMMUNIST TENOR OF THE EXHIBIT TRIGGERED AN ANTIPROPAGANDA BACKLASH FROM THE SOUTHERN PRESS AFTER THE FIRST WEEK NORTH KOREAN DEFECTORS ON HAND TO ANSWER QUESTIONS VANISHED FROM THE PAVILION THE HALL ALSO FEATURED VIDEOS OF VARIOUS NORTH KOREAN PROGRAMS INCLUDING PROPAGANDA SHOWS AND DOCUMENTARIES ON NATURAL TREASURES THESE TOO WERE REMOVED THE EXHIBIT ALSO ATTRACTED NORTH KOREAN NATIVES WHO MOVED SOUTH DURING THE WAR USUALLY WITH FAMILY MEMBERS LEFT BEHIND IN THE NORTH WHEN A SOUTH KOREAN GUIDE WAS EXPLAINING TO A CROWD OF VISITORS ABOUT MOUNT KUMKANG AN OLD MAN CORRECTED HER I KNOW I USED TO LIVE NEARBY HE TOLD HER IN THE GIFT SECTION AN OLD MAN EXCLAIMED AS HE SURVEYED THE MADE IN THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA TAGS IS IT SAFE TO SELL THESE THINGS THEN HALF TO HIMSELF HE MUSED I GUESS TIMES HAVE CHANGED MS CHO IS A JOURNALIST IN SEOUL 9312270025 931227 TECHNOLOGY AMDAHL'S 4THPERIOD LOSS TO EXCEED EXPECTATIONS SUNNYVALE CALIF AMDAHL CORP THREW COLD WATER ON RUMORS OF A REBOUND SAYING ITS FOURTHQUARTER LOSS WOULD BE MUCH WIDER THAN ANALYSTS EXPECTED THE COMPUTER MAKER REELING FROM DWINDLING DEMAND AND STIFF PRICE COMPETITION FOR ITS LARGE MAINFRAME SYSTEMS SAID IT EXPECTS TO LOSE MORE THAN 35 CENTS A SHARE IN THE PERIOD IT ADDED THAT ANALYSTS' ESTIMATES HAD BECOME OVERLY OPTIMISTIC BASED ON SPECULATION THAT COMPUTER SALES WERE SIGNIFICANTLY BEATING EXPECTATIONS THE AVERAGE ESTIMATE FOR THE QUARTER WAS ABOUT 15 CENTS A SPOKESMAN SAID UNIT COMPUTERS SALES HAVE INCREASED FROM THE THIRD QUARTER HE SAID BUT MOST CUSTOMERS ARE BUYING SMALLER SYSTEMS THAT HAVE LOWER AVERAGE SELLING PRICES AND ARE MOST SUBJECT TO PRICE COMPETITION AS A RESULT PROFIT MARGINS HAVE CONTINUED TO ERODE IN ADDITION THE COMPANY SAID RESULTS FROM LAYOFFS AND OTHER COSTCUTTING MOVES WON'T BE FELT UNTIL THE FIRST QUARTER RATHER THAN THE CURRENT QUARTER AS SOME ANALYSTS EXPECTED AMDAHL ANNOUNCED PLANS IN NOVEMBER TO LAY OFF 1800 EMPLOYEES AND EXPECTS TO END 1993 WITH ABOUT 5600 WORKERS ON THURSDAY AMDAHL FELL 93 IN AMERICAN STOCK EXCHANGE TRADING CLOSING AT 6125 OFF 625 CENTS 9312270024 931227 HERE A BLIZZARD CAN BE A JACKPOT AND A DROUGHT CAN BE A CRASH BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL IF YOU HEARD A COMMODITIES DEALER HUMMING WHITE CHRISTMAS LAST WEEK IT WASN'T NECESSARILY IN THE SPIRIT OF THE SEASON HE MIGHT HAVE BEEN CONTEMPLATING HIS PROFITS ON DECEMBER SNOW FUTURES EACH YEAR A FEW BORED COMMODITIES DEALERS PUT THEIR ANALYTICAL TALENTS TO USE SPECULATING ON SEASONAL SNOWFALL ALTHOUGH SNOW ISN'T A TYPICAL COMMODITY SNOW FUTURES TRADING CAN GIVE A TRADER SHIVERS OF JOY THERE ARE LONGTERM FORECASTS AND FREAK STORMS YEARS OF WEATHER DATA CAN BE CHARTED AND ANALYZED FOR PRECIPITATION TRENDS AND TRADING PATTERNS AND THERE'S MORE THAN ONE MARKET PHILADELPHIA DEALERS CAN BET ON HOW MANY INCHES WILL FALL IN NEW YORK CHICAGO SNOW IS SAID TO BE POPULAR AMONG NEW YORK DEALERS TODAY'S SNOW MARKET ISN'T WHAT IT WAS 10 YEARS AGO WHEN SERIOUS SUMS OF MONEY CHANGED HANDS IN THE EARLY 1980S A DEALER IN THE THENTHRIVING NEW YORK INTERBANK SNOW MARKET RACKED UP TENS OF THOUSANDS OF DOLLARS OF LOSSES SELLING SNOW FUTURES DURING A STORMY WINTER OR SO THE STORY GOES DEPENDING ON THE VERSION OF THE STORY THE DEALER EITHER FELL INTO ARREARS ON HIS MORTGAGE OR HANDED OVER HIS NEW JAGUAR TO COVER HIS SNOW OBLIGATIONS EITHER WAY THE MARKET MELTED UNDER THE HEAT OF THE SCANDAL TODAY'S BETS ARE MODEST IF YOU EXPECT A MILD DECEMBER FOR INSTANCE YOU MIGHT BUY A DECEMBER TWOINCH SNOW CONTRACT FOR 2 FOR EVERY INCH ABOVE TWO YOU'LL MAKE ONE DOLLAR PER SNOW CONTRACT IF LESS SNOW FALLS YOU PAY OF COURSE YOUR CONTRACT WON'T TRADE AT 2 ALL MONTH STORM FORECASTS WILL SEND THE PRICE SHARPLY HIGHER CLEAR SKIES WILL DRIVE IT DOWN LIKE ANY COMMODITY SNOW GENERATES SPECIAL TRADING STRATEGIES ONLY THE BRAVE SHORT SNOW OR SELL A SNOW CONTRACT INTERBANK CURRENCY DEALER CHESTER RUBEN OF CONTINENTAL BANK IN CHICAGO WHO HAS OBSERVED BUT NOT TRADED THE SNOW MARKET EXPLAINS THE HAZARD THE PROFIT POTENTIAL ON BEING SHORT IS LIMITED THE BEST CASE SCENARIO IS THAT THERE'S NO SNOW THE RISK IS UNLIMITED IN EARLY AUTUMN ONE CHICAGO BOND DEALER SOLD AN INCH OF OCTOBER SNOW FOR 2 THE PRICE SANK AS TRADERS GAVE UP ON THE PROSPECT OF EARLY SNOWFALL AND HE BOUGHT THE CONTRACT BACK A WEEK LATER FOR 50 CENTS BUT HE EMPHASIZES THAT HE'D NEVER TRY THAT STRATEGY IN MIDWINTER I WOULD NOT SELL SNOW IN JANUARY HE SAYS 9312270023 931227 POSSIBLE SUITORS STUDYING BOOKS OF MEDICAL CARE AT LEAST SEVEN COMPANIES SAID TO BE CONSIDERING A FULL OR PARTIAL OFFER BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS AT LEAST SEVEN PROSPECTIVE SUITORS ARE COMBING THROUGH THE BOOKS OF MEDICAL CARE AMERICA INC OPENING THE POSSIBILITY OF A BIDDING WAR FOR PART OR ALL OF THE COMPANY A MAJOR OPERATOR OF OUTPATIENTSURGERY CENTERS AND PROVIDER OF HOMEINFUSION THERAPY IN OCTOBER SURGICAL CARE AFFILIATES INC MADE AN UNSOLICITED BID TO ACQUIRE MEDICAL CARE FOR NEARLY 1 BILLION IN STOCK BUT IT FAILED TO STIR UP A COMPETING OFFER AND WAS FLATLY REJECTED SINCE THEN HOWEVER MEDICAL CARE HAS FACED MOUNTING PRESSURE FROM DISGRUNTLED SHAREHOLDERS AND AT A TIME WHEN HEALTHCARE PROVIDERS OF ALL STRIPES ARE SEEKING TO EXPAND AND BROADEN THEIR OWN SERVICE NETWORKS THAT HAS SPARKED WIDESPREAD SPECULATION THAT THE COMPANY MAY BE FORCED TO SELL SOME OF ITS ASSETS PERHAPS AT BARGAINBASEMENT PRICES THAT HAS LED SEVERAL INTERESTED PARTIES MOSTLY DIRECT COMPETITORS TO SIGN CONFIDENTIALITY AGREEMENTS PERMITTING THEM AN INSIDER'S VIEW OF THE COMPANY'S FINANCES AND OPERATIONS ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION THE IDENTITIES OF ALL THE POTENTIAL BIDDERS COULDN'T BE CONFIRMED BUT THE LIST IS SAID TO INCLUDE WR GRACE & CO THE BOCA RATON FLA SPECIALTY CHEMICAL AND HEALTHCARE SERVICES CONCERN ALTHOUGH A WR GRACE SPOKESMAN DECLINED TO COMMENT PEOPLE FAMILIAR WITH THE SITUATION SAID THAT GRACE LIKE MOST OF THE POTENTIAL SUITORS IS PRIMARILY INTERESTED IN MEDICAL CARE'S CHAIN OF 47 INFUSIONTHERAPY SERVICE CENTERS WHICH HELP PATIENTS GIVE THEMSELVES INTRAVENOUS MEDICATIONS AT HOME IN ADDITION TO GRACE OTHER COMPETITORS SAID TO BE HAVING A LOOK INCLUDE CAREMARK INTERNATIONAL INC NORTHBROOK ILL ONE OF THE NATION'S LARGEST PROVIDERS OF INFUSION THERAPY ALTHOUGH IT HAS LATELY BEEN CONCENTRATING ON EXPANDING INTO OTHER BUSINESSES AND DEALING WITH A FEDERAL INVESTIGATION INTO POSSIBLE KICKBACKS TO DOCTORS A COMPANY SPOKESMAN DECLINED TO COMMENT I THINK THOSE GRACE AND CAREMARK ARE THE MOST SERIOUS PEOPLE SAID ONE PERSON FAMILIAR WITH THE RECENT DELIBERATIONS OF MEDICAL CARE'S BOARD BUT THERE HAS BEEN A LOT OF ACTIVITY OTHERS SAID TO BE STUDYING THE COMPANY INCLUDE INVESTMENT CONCERNS AND HOSPITAL OPERATORS INTERESTED IN THE ENTIRE COMPANY INCLUDING AMERICAN MEDICAL HOLDINGS INC A DALLASBASED HOSPITAL CONCERN WHERE A SPOKESWOMAN DECLINED TO COMMENT STILL INDUSTRY ANALYSTS SAID THAT SUCH A BID IS UNLIKELY GIVEN MEDICAL CARE'S RECENT OPERATIONAL PROBLEMS WITH ITS HOMEINFUSION BUSINESS BUT TARPLEY B JONES SURGICAL CARE'S CHIEF FINANCIAL OFFICER SAID HIS COMPANY PLANS TO BEGIN REVIEWING MEDICAL CARE'S BOOKS THIS WEEK WITH AN EYE TOWARD MAKING A SECOND BID HE ADDED THAT MEDICAL CARE HAS SET A DEADLINE OF JAN 7 FOR OFFERS SO WE'LL HAVE TO RESPOND BY THEN MEANWHILE SOME OBSERVERS THINK COLUMBIA HEALTHCARE CORP COULD JOIN THE BIDDING ESPECIALLY IF ONE OF ITS COMPETITORS MAKES A MOVE SINCE MANY OF MEDICAL CARE'S 93 SURGERY CENTERS ARE IN THE SAME MARKETS AS COLUMBIA HOSPITALS THE BURGEONING LOUISVILLE KY HOSPITAL GIANT IS CURRENTLY PREOCCUPIED WITH COMPLETING ITS PROPOSED MERGER WITH HCAHOSPITAL CORP OF AMERICA BUT HAS FORGED CLOSE TIES WITH MEDICAL CARE MANAGEMENT AND ENTERED INTO SEVERAL JOINT VENTURES WITH THE COMPANY IN SEVERAL CITIES OUR INTERESTS ARE MARKETSPECIFIC AND NOT IN THE COMPANY AS A WHOLE SAID DAVID VANDEWATER COLUMBIA'S CHIEF OPERATING OFFICER HE ADDED HOWEVER THAT COLUMBIA WOULD WANT TO DO WHATEVER IS NECESSARY TO PROTECT OUR INTERESTS IN OUR VARIOUS MARKETS FOR ITS PART MEDICAL CARE DECLINED TO IDENTIFY THE PARTIES INVOLVED OR DISCLOSE WHAT SORT OF TIMETABLE THEY ARE WORKING UNDER THE 4 BILLION HOMEINFUSION INDUSTRY HAS LATELY BEEN BATTERED BY PRESSURE TO REDUCE THE PRICE OF ITS SERVICES BUT INDUSTRY ANALYSTS SAY A COMPETITOR COULD FOLD THE MEDICAL CARE CENTERS INTO ITS OWN SYSTEM CUT OVERHEAD AND IMPROVE ITS OWN MARGINS WR GRACE FOR EXAMPLE ALREADY OPERATES THE NATION'S LARGEST CHAIN OF OUTPATIENTDIALYSIS CENTERS AND ITS NATIONAL MEDICAL CARE UNIT HAS BEEN SEEKING TO EXPAND A NETWORK OF HOMEINFUSION AND RESPIRATORYTREATMENT CENTERS THAT ALREADY HAS 62 LOCATIONS NATIONWIDE IN JULY GRACE COMPLETED A 122 MILLION ACQUISITION OF HOME INTENSIVE CARE INC A MIAMIBASED PROVIDER OF HOME INFUSION THERAPY AND EARLIER THIS MONTH IT ACQUIRED A VIVRA INC UNIT THAT PROVIDES HOME NURSING SERVICES FROM 10 CALIFORNIA LOCATIONS INDUSTRY OBSERVERS SAID AN ACQUISITION OF MEDICAL CARE'S INFUSION CENTERS WOULD STRENGTHEN GRACE'S PRESENCE IN THE NORTHEAST AND FLORIDA THE INTENSIFIED INTEREST IN MEDICAL CARE STEMS FROM THE DEC 8 DECISION BY MEDICAL CARE'S BOARD TO OPEN ITS BOOKS TO POTENTIAL BIDDERS THAT FOLLOWED A SHAREHOLDER REVOLT LED BY MEMBERS OF FORT WORTH'S BASS FAMILY OVER THE COMPANY'S REJECTION OF THE BUYOUT OFFER FROM SURGICAL CARE THE NASHVILLE TENN CONCERN THAT IS MEDICAL CARE'S BIGGEST COMPETITOR IN THE OUTPATIENTSURGERY BUSINESS THE FACT THAT MEDICAL CARE HAS THROWN ITS DOORS OPEN SO WIDELY IS INDICATIVE OF THE INTENSE PRESSURE ITS MANAGEMENT AND BOARD FACE TO TAKE CONCRETE ACTION TO INCREASE SHAREHOLDER VALUE SINCE SEPTEMBER 1992 WHEN THE COMPANY WAS FORMED SHAREHOLDERS HAVE SEEN THE VALUE OF THEIR STOCK PLUMMET TO THE LOW 20S FROM 58 A SHARE AMID CONTINUING PROBLEMS IN ITS HOMEINFUSION BUSINESS FOR THE 1993 NINE MONTHS MEDICAL CARE REPORTED A NET LOSS OF 1122 MILLION OR 307 A SHARE COMPARED WITH NET INCOME OF 314 MILLION OR 84 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE ROSE 55 TO 4688 MILLION FROM 4443 MILLION THE QUESTION IS CAN THEY DO NOTHING AT THIS POINT SAID LORI PRICE AN INDUSTRY ANALYST WITH OPPENHEIMER & CO I DON'T THINK THEY HAVE ANY CHOICE BUT TO ACT GLENN RUFFENACH IN ATLANTA CONTRIBUTED TO THIS ARTICLE 9312270022 931227 CORRECTIONS & AMPLIFICATIONS OWENS & MINOR INC AGREED TO ACQUIRE STUART MEDICAL INC FOR 1552 MILLION OF CASH AND STOCK THE TRANSACTION WHICH IS SUBJECT TO SHAREHOLDER AND REGULATORY APPROVAL IS EXPECTED TO CLOSE IN APRIL AN ARTICLE THURSDAY INCORRECTLY SAID THE TRANSACTION HAD BEEN COMPLETED CHEVRON CORP IS BEING AUDITED BY THE INTERNAL REVENUE SERVICE IN A TAX DISPUTE INVOLVING 19791981 CRUDE OIL PURCHASES FROM SAUDI ARABIA AN ARTICLE THURSDAY INCORRECTLY SAID CHEVRON WAS NEGOTIATING WITH THE IRS TO SETTLE THE MATTER 9312270021 931227 JWP TO PROCEED WITH REORGANIZATION DESPITE INVOLUNTARYBANKRUPTCY FILING BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL RYE BROOK NY JWP INC SAID SEVERAL SUBORDINATED DEBTHOLDERS FILED A CHAPTER 11 INVOLUNTARY BANKRUPTCYLAW PETITION AGAINST IT ALTHOUGH THE COMPANY PLANS TO PROCEED WITH ITS PREVIOUSLY ANNOUNCED REORGANIZATION PLAN THE MECHANICAL AND ELECTRICAL CONSTRUCTION CONTRACTING COMPANY ANNOUNCED A PLAN IN OCTOBER TO REFINANCE ITS 484 MILLION OF SENIOR NOTES AND BANK DEBT IN A PREPACKAGED BANKRUPTCYLAW FILING THAT EFFECTIVELY WOULD PAY NOTHING TO SHAREHOLDERS AND SUBORDINATED NOTE HOLDERS THE THREE HOLDERS WHO FILED THE INVOLUNTARY PETITION WERE AMONG HOLDERS OF JWP'S 7 CONVERTIBLE SUBORDINATED DEBENTURES WHICH TOTAL ABOUT 7 MILLION HOLDERS OF ABOUT 75 OF JWP'S SENIOR NOTES AND BANK DEBT HAD AGREED TO SUPPORT THE MAIN TERMS OF THE OCTOBER PLAN WE WILL STILL MOVE FORWARD WITH THE PLAN ANNOUNCED IN OCTOBER SAID SHELDON CAMMAKER JWP GENERAL COUNSEL HE SAID THE COMPANY WOULD ASK THE BANKRUPTCY COURT TO CONVERT THE INVOLUNTARY PETITION INTO A VOLUNTARY PREARRANGED PROCEEDING AT THE SAME TIME THAT JWP PRESENTS ITS REORGANIZATION PLAN THE INVOLUNTARY PETITION COMES NEAR THE FINAL STAGES OF JWP'S RESTRUCTURING AND IT IS LIKELY THAT ITS IMPACT WILL BE TO ACCELERATE THE RESTRUCTURING SAID EDWARD F KOSNIK CHAIRMAN AND CHIEF EXECUTIVE JWP ANTICIPATES COMPLETING THE PROCEEDING AND CONSUMMATING THE PLAN BY THE END OF THE FIRST QUARTER IT SAID ITS SUBSIDIARIES WON'T BE AFFECTED BY THE FILING UNDER TERMS OF THE PLAN ANNOUNCED IN OCTOBER HOLDERS OF THE 484 MILLION OF SENIOR NOTES AND BANK DEBT WOULD EXCHANGE THE DEBT FOR ABOUT 100 MILLION OF RECOURSE DEBT TO BE SUPPORTED BY LIKELY SALES OF SOME BUSINESSES 80 MILLION IN NONRECOURSE OR UNGUARANTEED DEBT AND 100 OF THE COMPANY'S EQUITY JWP MADE MAJOR ACQUISITIONS IN THE 1980S BOOSTING ANNUAL REVENUE TO ABOUT 4 BILLION BY MID1992 BY EXPANDING INTO INFORMATION SERVICES ENERGY AND ENVIRONMENTAL SERVICES AND ELECTRONIC SYSTEMS BUT THE STRATEGY BACKFIRED WHEN COMPUTER PRICE WARS AND A SLUMP IN COMMERCIAL CONSTRUCTION LEFT JWP HEAVILY IN DEBT THE COMPANY HAS BEEN STEADILY SELLING OFF THE ACQUISITIONS AND PLANS TO RETURN TO ITS CORE ELECTRICAL AND MECHANICAL BUSINESS WITH EXPECTED ANNUAL REVENUE OF ABOUT 14 BILLION IT HAD A SECONDQUARTER NET LOSS OF 159 MILLION OR 40 CENTS A SHARE ON REVENUE OF 6008 MILLION JWP ALSO SAID IT SIGNED A LETTER OF INTENT TO SELL ITS DYNALECTRIC GROUP OF SUBSIDIARIES AND ITS TWO TEXASBASED UNITS JWP BRANDT ENGINEERING AND JWP GOWAN ELECTRIC TO AN INVESTMENT GROUP INCLUDING DYNALECTRIC MANAGEMENT AND AN AFFILIATE OF RAPPAHANNOCK INVESTMENT CO OF WASHINGTON DC TERMS WEREN'T DISCLOSED BUT THE ENTITIES BEING SOLD GENERATED COMBINED REVENUE OF ABOUT 467 MILLION IN 1992 THE SALE IS PART OF THE RESTRUCTURING PLAN AND IS EXPECTED TO CLOSE IN EARLY 1994 ALTHOUGH DYNALECTRIC IS ONE OF JWP'S LARGER ELECTRICAL/MECHANICAL UNITS A SPOKESWOMAN SAID THE COMPANY DECIDED TO SELL IT BECAUSE IT'S IMPORTANT FOR US TO RAISE CAPITAL AND WE COULDN'T JUST SELL HINDERED COMPANIES WE HAD TO SELL STRONGER ONES AS WELL SHE SAID DYNALECTRIC IS A HEALTHY COMPANY WITH A STRONG PRESENCE IN THE MARKETS IT IS IN AND IT MADE A NICE PACKAGE TO SELL SEPARATELY JWP SAID ITS JAMAICA WATER SUPPLY CO UNIT SIGNED AN AGREEMENT WITH REPRESENTATIVES OF STATE AND LOCAL GOVERNMENTS AND A CONSUMER ADVOCATE GROUP TO END REGULATORY AND LEGAL PROCEEDINGS AGAINST JAMAICA WATER JWP SAID THE WATER COMPANY WOULD PAY 117 MILLION OVER THE NEXT THREE YEARS TO CUSTOMERS IN NASSAU AND QUEENS COUNTIES WHICH WILL RESULT IN A FOURTHQUARTER CHARGE TO THE PARENT OF ABOUT 5 MILLION THE AGREEMENT ALSO PROVIDES FOR A THREEYEAR GENERAL RATE CASE MORATORIUM RESOLUTION OF THE ECONOMIC ISSUES RAISED BY THE PUBLIC SERVICE COMMISSION FROM ITS 1992 AUDIT OF JAMAICA WATER SETTLEMENT OF RELATED LITIGATION AND THE DISMISSAL OF A NASSAU COUNTY LAWSUIT AGAINST JAMAICA WATER THE JWP SPOKESWOMAN SAID SHE DIDN'T KNOW IF THE WATER COMPANY NOW WOULD BE SOLD BUT THAT SOME IMPEDIMENTS TO A SALE HAD BEEN REMOVED THE AGREEMENT MUST BE APPROVED BY JAMAICA WATER'S BOARD AND THE STATE PUBLIC SERVICE COMMISSION 9312270019 931227 BUSINESS BRIEF ALLIANCE ENTERTAINMENT CORP MUSIC WHOLESALER TO ACQUIRE ABBEY ROAD FOR 35 MILLION ALLIANCE ENTERTAINMENT CORP NEW YORK SAID IT INTENDS TO ACQUIRE CLOSELY HELD ABBEY ROAD DISTRIBUTORS FOR ABOUT 35 MILLION IN CASH STOCK AND NOTES ABBEY ROAD BASED IN SANTA ANA CALIF IS A WEST COAST WHOLESALE DISTRIBUTOR OF RECORDED MUSIC WITH 1993 SALES OF 807 MILLION THE TRANSACTION IS EXPECTED TO BE COMPLETED IN FEBRUARY ANALYSTS ESTIMATE ALLIANCE A MAJOR WHOLESALE DISTRIBUTOR OF RECORDED MUSIC WILL REPORT REVENUE OF ABOUT 285 MILLION FOR 1993 9312270017 931227 BUSINESS BRIEF DELVAL FINANCIAL CORP HOLDERS PASS PROPOSAL TO END REIT STATUS CHANGE NAME DELVAL FINANCIAL CORP BOGOTA NJ SAID SHAREHOLDERS APPROVED A PROPOSAL TO AUTHORIZE THE COMPANY TO QUALIFY NO LONGER AS A REALESTATE INVESTMENT TRUST FOR FISCAL 1994 AND THEREAFTER SHAREHOLDERS ALSO VOTED EFFECTIVE JAN 1 TO CHANGE THE NAME OF THE COMPANY TO DVL INC BEN S READ JR PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE CHANGES WILL ENABLE THE COMPANY TO PURSUE NEW BUSINESS OPPORTUNITIES IN REAL ESTATE AND LOAN SERVICING WHICH SHOULD HAVE A POSITIVE IMPACT ON FUTURE EARNINGS 9312270016 931227 WHAT'S NEWS WORLDWIDE CLINTON WILL GIVE FILES TO THE JUSTICE DEPARTMENT BUT WON'T MAKE THEM PUBLIC THE PRESIDENT TRIED TO DEFUSE A CONTROVERSY OVER HIS FAILED INVESTMENT IN AN ARKANSAS REALESTATE VENTURE BY GIVING DOCUMENTS TO THE JUSTICE DEPARTMENT BUT AIDES INDICATED THE CLINTONS DON'T INTEND TO MAKE THE DOCUMENTS PUBLIC OR SEND THEM TO LAWMAKERS GIVING OPPONENTS A REASON TO PRESS THEIR CRITICISM OF THE PRESIDENT INTEREST IN THE PAPERS WAS FUELED BY THE DISCLOSURE THAT SOME FILES WERE REMOVED FROM THE OFFICE OF THE WHITE HOUSE DEPUTY COUNSEL AFTER HIS SUICIDE FOR AMERICANS WHO ARE LOOKING FOR POLITICAL AND PERSONAL STABILITY IN A PRESIDENT THERE STILL IS A DEGREE OF UNCERTAINTY CONCERNING CLINTON ACCORDING TO A PANEL OF POLITICAL EXPERTS PLO LEADER ARAFAT SAID HE HOPED FOR POSITIVE ANSWERS WHEN TALKS RESUME TODAY IN CAIRO ON DISPUTES DELAYING ISRAEL'S PULLOUT FROM GAZA AND JERICHO IN JERUSALEM RABIN REPORTEDLY TOLD HIS CABINET ISRAEL WAS READY TO DOUBLE THE AMOUNT OF LAND IT WOULD CEDE TO PALESTINIAN CONTROL AROUND JERICHO CHINA TOLD THE UN'S BOUTROSGHALI IT OPPOSES USING SANCTIONS TO FORCE NORTH KOREA TO ACCEPT NUCLEAR INSPECTIONS PREMIER LI SAID CHINA HOPES KOREAN DENUCLEARIZATION CAN BE ACHIEVED THROUGH NEGOTIATION THE CIA INFORMED CLINTON THAT PYONGYANG LIKELY HAS DEVELOPED ONE OR TWO NUCLEAR BOMBS CHINA'S LEADERS GATHERED IN BEIJING ON THE CENTENARY OF MAO TSETUNG'S BIRTH TO PRAISE HIM AS A GREAT PATRIOT WHILE HAILING THE MAN WHO SCRAPPED HIS POLICIES DENG XIAOPING AS HIS NATURAL SUCCESSOR ABOUT 10000 PEOPLE INCLUDING TOP OFFICIALS AND MAO'S RELATIVES ASSEMBLED IN THE GREAT HALL OF THE PEOPLE FOR THE TELEVISED RALLY A BOMB EXPLODED IN A VILLAGE 55 MILES WEST OF BELFAST NORTHERN IRELAND MINUTES AFTER THE EXPIRATION OF A THREEDAY CHRISTMAS CEASEFIRE CALLED BY THE IRA THERE WERE NO REPORTS OF CASUALTIES AND NO GROUP CLAIMED RESPONSIBILITY BRITAIN AND IRELAND HAVE AGREED TO INCLUDE THE IRA IN PEACE TALKS IF IT RENOUNCES VIOLENCE A SAUDI FINANCIER PAID 225 MILLION TO SETTLE A CASE INVOLVING CHARGES HE CONSPIRED TO STEAL OVER 300 MILLION FROM THE DEPOSITORS OF BCCI UNDER THE TERMS OF THE SETTLEMENT THE FEDERAL RESERVE BOARD AND THE MANHATTAN DISTRICT ATTORNEY'S OFFICE AGREED TO DROP CHARGES AGAINST SHEIK KHALID BIN MAHFOUZ AND HIS ASSISTANT ABOUT 25 BILLION IS BEING ADDED TO CLINTON'S DEFENSE BUDGET REQUEST FOR NEXT YEAR DESPITE PLEAS FROM THE MILITARY FOR MORE MONEY OFFICIALS SAID TO KEEP WITHIN THE BUDGET THE PENTAGON IS CONSIDERING A PAUSE IN CONSTRUCTION WITH SOME ENVIRONMENTAL CLEANUP ACTIVITIES AND BASECLOSING WORK CONTINUING STATES WILL BE REQUIRED BY THE CLINTON ADMINISTRATION TO FINANCE MEDICAID ABORTIONS IN CASES OF RAPE OR INCEST OR IF A WOMAN'S LIFE IS ENDANGERED THE NEW RULES WILL COVER ABORTIONS RETROACTIVE TO OCT 1 AND WILL MAKE IT EASIER FOR STATES TO OBTAIN FEDERAL REIMBURSEMENTS MEDICAID ADMINISTRATOR BRUCE VLADECK SAID TWO KIDNAPPERS WERE CAPTURED IN RUSSIA'S SOUTHERN DAGESTAN PROVINCE AND A LARGE PART OF THE 10 MILLION THEY HAD RECEIVED IN RANSOM WAS RECOVERED MOSCOW RADIO SAID THE MEN AND TWO OTHERS HAD TAKEN MORE THAN A DOZEN SCHOOLCHILDREN HOSTAGE FOUR DAYS AGO SEIZED A MILITARY HELICOPTER AND DEMANDED PASSAGE TO IRAN RUSSIAN NATIONALIST ZHIRINOVSKY ANGERED BULGARIA'S PRESIDENT BY SAYING HE SHOULD QUIT ZHIRINOVSKY WHOSE PARTY DID UNEXPECTEDLY WELL IN RECENT ELECTIONS ALSO SAID DURING HIS VISIT TO SOFIA THAT BULGARIA SHOULD PLAY A LARGER ROLE IN THE BALKANS AND SUGGESTED THAT BULGARIAN TERRITORY COULD INCLUDE THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA TWO SOMALI GUARDS WERE INJURED WHEN GRENADES WERE THROWN INTO CATHOLIC RELIEF SERVICES BUILDINGS IN SOMALIA'S SOUTHERN CITY OF BAIDOA ON FRIDAY THERE WAS A SIMILAR ATTACK THE SAME DAY AT THE BAIDOA OFFICES OF AN IRISH AID ORGANIZATION WITH NO INJURIES A MUSLIM GROUP HAD THREATENED TO SHOOT ANYONE SPREADING CHRISTIANITY DIED THE REV NORMAN VINCENT PEALE 95 AMERICAN RELIGIOUS LEADER WHO INSPIRED MILLIONS OF PEOPLE THROUGH HIS SERMONS AND BESTSELLING BOOK THE POWER OF POSITIVE THINKING FRIDAY IN PAWLING NY AFTER A RECENT STROKE 9312270015 931227 RIVERWOOD SETS PACT WITH DANAPAK HOLDING IN BEVERAGE PACKAGING ATLANTA RIVERWOOD INTERNATIONAL CORP SAID IT FORMED A JOINT VENTURE WITH DENMARK'S DANAPAK HOLDING AS TO SUPPLY PACKAGING SERVICES TO THE SCANDINAVIAN BEVERAGE INDUSTRY TERMS WEREN'T DISCLOSED THE VENTURE WILL BE BASED IN HERNING DENMARK AND WILL SERVE TERRITORY THAT INCLUDES DENMARK NORWAY SWEDEN ICELAND GREENLAND AND THE FAROE ISLANDS RIVERWOOD A PAPERBOARD PACKAGING AND PACKAGINGMACHINERY COMPANY IS A PUBLICLY TRADED UNIT OF MANVILLE CORP 9312270014 931227 INTERNATIONAL UN CHIEF'S FOCUS ON MILITARY ROLE BOTHERS STAFFERS BY GERALDINE BROOKS STAFF REPORTER OF THE WALL STREET JOURNAL UNITED NATIONS JUST BEFORE SUNSET ON A CHILLY NOVEMBER AFTERNOON BOUTROS BOUTROSGHALI STOOD ON THE PLAIN AT THE US MILITARY ACADEMY AND TOOK THE SALUTE FROM THE LONG GRAY LINE OF THE CADET CORPS LATER THAT EVENING AFTER DELIVERING A SPEECH ON PEACEKEEPING THE UN SECRETARYGENERAL RECEIVED A STANDING OVATION FROM THE US ARMY'S FUTURE OFFICERS A FEW DAYS EARLIER A SIMILAR SPEECH AT THE NATIONAL DEFENSE UNIVERSITY HAD BEEN PUNCTUATED BY THREE OVATIONS FROM THE PREDOMINANTLY MILITARY AUDIENCE AIDES TRAVELING WITH MR BOUTROSGHALI SAID THEY'D RARELY SEEN HIM IN SUCH GOOD FORM AS HE DEFTLY FIELDED QUESTIONS ON THE UN'S INCREASINGLY IMPORTANT GLOBAL MILITARY ROLE BUT BACK AT UN HEADQUARTERS NOT ALL STAFFERS ARE SANGUINE ABOUT THE SECRETARYGENERAL'S EAGERNESS TO DON A BLUE HELMET AND REVIEW TROOPS OF MEMBER NATIONS SOME STAFFERS SAY THEY FEEL THAT MR BOUTROSGHALI'S EMPHASIS ON THE UN'S MILITARY ROLE EVEN AS A PEACEMAKER IS TAINTING AN ORGANIZATION THAT USED TO BE IDENTIFIED WITH THE PACIFIST CONVICTIONS OF U THANT AND THE DEFT DIPLOMACY OF DAG HAMMARSKJOLD IN 1991 THE UN SPENT 15 BILLION ON DEVELOPMENT AND 500 MILLION ON PEACEKEEPING THIS YEAR WHILE THE DEVELOPMENT BUDGET SHRANK SLIGHTLY PEACEKEEPING'S BALLOONED TO 36 BILLION JAMES GUSTAVE SPETH THE NEWLY APPOINTED ADMINISTRATOR OF THE UN DEVELOPMENT PROGRAM HAS USED ALMOST EVERY PUBLIC PLATFORM TO CALL ON THE UN TO RECLAIM WHAT HE CALLS ITS ECONOMIC AND SOCIAL MANDATE THE GREATEST STRENGTH OF THE UN MR SPETH SAID IN A SPEECH ISN'T IN ITS MILITARY AUTHORITY BUT IN ITS MORAL AUTHORITY WHICH COMES LARGELY FROM ITS DEVELOPMENT PROGRAMS HE SEES THE UN'S ABILITY TO OFFER SUCH SERVICES THREATENED BY A GROWING IMBALANCE BETWEEN THE RESOURCES DEVOTED TO CRISES AS OPPOSED TO REAL DEVELOPMENT INDEED DURING THE PAST FEW DAYS MR BOUTROSGHALI WAS IN CHINA AND NORTH AND SOUTH KOREA TRYING TO DEFUSE THE CRISES OVER NORTH KOREA'S SUSPECTED NUCLEAR WEAPONS PROGRAM SOME DIPLOMATS FIND THE ARGUMENT OVER THE BALLOONING PEACEKEEPING BUDGET SPECIOUS WHAT IS THE UN SUPPOSED TO DO ASKS SIR DAVID HANNAY BRITAIN'S UN AMBASSADOR LET A FEW MORE WARS RAGE UNTENDED BRITAIN HE SAYS CALCULATES THE COST OF PEACEKEEPING SEPARATELY FROM ITS AID BUDGET WHERE THE FALL IN CONTRIBUTIONS TO DEVELOPING COUNTRIES REFLECTS NEW COMMITMENTS TO EASTERN EUROPE BUT MR SPETH ARGUES THAT DEVELOPMENT ISSUES HAVE ALSO RECEIVED INTELLECTUAL SHORT SHRIFT HE HAS CALLED ON THE SECRETARYGENERAL TO WRITE AN AGENDA FOR DEVELOPMENT AS A FOLLOWUP TO HIS PEACEKEEPING DISCUSSION PAPER AGENDA FOR PEACE WHICH APPEARED MORE THAN A YEAR AGO THAT PAPER CALLED FOR A BOOSTING OF THE UN'S MILITARY CLOUT THROUGH EARMARKED STANDBY FORCES WITHIN NATIONAL ARMIES IT BROUGHT CRITICISM FROM SOME QUARTERS THAT THE SECRETARYGENERAL WAS TRYING TO TAKE OVER POWERS TRADITIONALLY VESTED IN THE SECURITY COUNCIL THE ARGUMENT IS TAKING A TOLL BOTH AT THE GRASSROOTS AND IN THE EXECUTIVE OFFICES OF THE UN EARLIER THIS YEAR AS UN CIVILIAN STAFFERS WAITED FOR EVACUATION AT MOGADISHU'S MUCHSHELLED AIRPORT WORKERS FROM ORGANIZATIONS SUCH AS THE UN CHILDREN'S FUND AND THE UN DEVELOPMENT PROGRAM MUTTERED ANGRILY ABOUT THE WAY THEIR HUMANITARIAN MISSION HAD BEEN OVERWHELMED THE UN IS KILLING THE PEOPLE I'M SUPPOSED TO BE SAVING SAID ONE DEVELOPMENTPROGRAM STAFFER NEAR TEARS FROM THE STRESS OF WEEKS UNDER FIRE THE LATEST SYMPTOM OF INTERNAL CONFLICT WAS THE NOVEMBER RESIGNATION OF THE UN'S SENIOR HUMANITARIAN OFFICIAL JAN ELIASSON AFTER TWO YEARS ON THE JOB OFFICIALLY HE ASKED TO LEAVE FOR FAMILY REASONS BUT HIS TENURE AS UNDERSECRETARY GENERAL HAD BEEN MARKED BY PLEAS AND WARNINGS ABOUT THE DECLINING SIGNIFICANCE OF THE UN'S TRADITIONAL HUMANITARIAN ROLE RELATIVE TO ITS NEW MILITARY ONE ASSOCIATES SAY HE WAS INCREASINGLY FRUSTRATED BY HIS INABILITY TO GET MR BOUTROSGHALI'S ATTENTION AND THAT LEAVES THE SECRETARYGENERAL GETTING A WARMER WELCOME FROM MILITARY AUDIENCES THAN HE OFTEN DOES FROM DIPLOMATIC OR POLITICAL ONES DEFINITELY THE US MILITARY IS MORE PREPARED TO CHANGE AND GET INVOLVED WITH THE UN THAN CIVILIAN POLITICIANS SAYS MAURICE BARIL A CANADIAN GENERAL SERVING TEMPORARILY AS MILITARY ADVISER TO THE SECRETARYGENERAL IN THE POST COLD WAR ENVIRONMENT ARMIES EVERYWHERE ARE PONDERING THEIR ROLE WHAT DO YOU DO ASKS GEN BARIL CUT EVERYTHING UP INTO RAZOR BLADES AND GO HOME OR DO WHAT'S DOABLE IN PEACETIME MOP UP TORNADOES IN FLORIDA FIGHT FOREST FIRES IN CALIFORNIA AND GET INVOLVED IN UN PEACEKEEPING AT WEST POINT THE YOUNG CADETS AGREED I'M PROUD WE'RE PART OF UN PEACEKEEPING SAID 19YEAROLD AARON DIRKS WHO FOUND MR BOUTROSGHALI'S SPEECH IMPRESSIVE KYLER COLE A 20YEAROLD CADET SAID THAT CIVILIANS AND MILITARY PERSONNEL TENDED TO FORM VERY DIFFERENT VIEWS OF EVENTS SUCH AS THE DESECRATION OF A SOLDIER'S CORPSE IN SOMALIA FOR US IT'S ALMOST A CATALYST IT MAKES YOU WANT TO CONTRIBUTE TO THAT MISSION NOT WITHDRAW 9312270013 931227 INTERNATIONAL NAFTA IS DIVIDING LABORERS IN MEXICO INTO TWO CAMPS THE ELITE OR LEFT OUT BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY JUAN ANTONIO PORTUGAL A 19YEAROLD STOCKBOY AT A NEW WALMART HERE IS SO CHIRPY ABOUT HIS PROSPECTS UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT THAT HE CHANTS QUIETLY AS HE WORKS WHO'S NUMERO UNO THE CLIENT SINGS MR PORTUGAL WHOSE PAY IS DOUBLE THAT OF HIS OLD JOB BUT ON NEARBY RESINA STREET A 38YEAROLD TAMALE VENDOR SNEERS AT THE MENTION OF FREE TRADE THE VENDOR WHO GIVES HER NAME ONLY AS MARIA LETICIA SAYS THAT BECAUSE OF FREE TRADE HER GARMENTFACTORY BOSSES THREW IN THE TOWEL AND BEGAN IMPORTING CLOTHES FROM KOREA THEN WORKERS WERE SIMPLY ASKED TO SWITCH SHIRT LABELS EXCHANGING MADE IN KOREA TICKETS FOR MADE IN MEXICO WITH HER JOB SECURITY IN QUESTION SHE CHUCKED HER 45AWEEK JOB TO SELL TAMALES THE ECONOMIC CHANGES THAT COME WITH NAFTA HAVE ALREADY BEGUN POLARIZING THE MEXICAN LABOR FORCE SOME SEE PAYOFFS OTHERS SEE LAYOFFS WHAT'S EMERGING HERE IS A LABOR POOR AND LABOR ELITE THROUGHOUT THIS NATION OF 85 MILLION PEOPLE INEFFICIENT UNCOMPETITIVE INDUSTRIES ARE SHEDDING HUNDREDS OF THOUSANDS OF WORKERS THE TEXTILE AND GARMENT INDUSTRY HERE FOR EXAMPLE HAS SHRUNK IN HALF BECAUSE OF OPENTRADE BORDERS EQUALLY HARD HIT TOY FACTORIES AND WINERIES MEANWHILE MANUFACTURERS ARE FINDING WAYS TO BOOST PRODUCTIVITY IN THE PAST THREE YEARS PRODUCTIVITY HAS JUMPED ABOUT 20 IN THE GENERAL MANUFACTURING SECTOR INDUSTRIES ON THIS WINNING SIDE ARE AUTO MAKERS LARGESCALE FARM OPERATIONS AND SUCH SERVICE INDUSTRIES AS TELECOMMUNICATIONS FOR HIS PART PRESIDENT CARLOS SALINAS DE GORTARI IS URGING BUSINESSES TO GET COMPETITIVE BY INSTITUTING PRODUCTIVITY PLANS AND THEN LINKING THOSE GAINS TO HIGHER WAGES BUT THAT'S EASIER SAID THAN DONE AS THE SUN RISES AND FALLS ABOVE THE FACTORIES OF RESINA STREET IN THE GRITTY IZTACALCO AREA OF THE METROPOLIS THE GRIND OF THE RESTRUCTURING CAN BE SEEN WHEN THEY TALK ABOUT PRODUCTIVITY WE DON'T KNOW WHAT THAT MEANS SAYS GLORIA MARTINEZ A 47YEAROLD GARMENT WORKER WHO FACES SUNDAY MORNINGS WITH VIRTUALLY ALL OF HER 40AWEEK CHECK SPENT WE PRODUCE MORE BUT WE'RE STILL POORLY PAID WE NEED BETTER BOSSES MARTA DEGANTE DRESSED IN A TATTERED SMOCK CHIMES IN THE WORK HERE IS HARD SHE SAYS BUT WE DON'T WORK WITH SPIRIT AND ENTHUSIASM OUR SALARIES ARE LOW LOW LOW TWO MINUTES AFTER THEIR LUNCH BREAK AT 232 PM THE TWO WORKERS FIDGET AND LOOK AT THEIR WATCHES THEN THEY DASH BACK INTO THEIR FACTORY FOR THE WOMEN OF THE FACTORIES THE WORK IS DECIDEDLY DIFFICULT SIMPLE INDIGNITIES ARE COMMONPLACE AS YOUNG WOMEN POUR OUT OF AN UNDERGARMENT FACTORY A GUARD SEARCHES THEIR PURSES STEALING A BRASSIERE THAT RETAILS FOR 15 AFTER ALL IS WORTH A THIRD OF A WEEK'S PAY WOMEN IN THE AREA GOT FED UP AND TRIED TO ORGANIZE A STRIKE TO FORM AN INDEPENDENT UNION AT A LOCAL DRESS FACTORY EARLIER THIS YEAR BUT THE WORK STOPPAGE LASTED ONLY A DAY WHEN THE RINGLEADERS REALIZED THEY LACKED ENOUGH FOLLOWERS SAY SEVERAL WORKERS SOON THE WOMEN WERE ALL BACK TO THEIR 48HOUR WORKWEEKS THE PAY THEY MAKE GENERALLY DOUBLE THE MEXICAN MINIMUM WAGE OF ROUGHLY 490 A DAY ISN'T ENOUGH TO BUY THE SHINY POLYESTER FROCKS THEY PRODUCE AT THE FACTORY ALL AROUND THEM THE MEN OUT ON RESINA STREET EARN MORE PAY A FEW DO SO AT GREAT RISK OUTSIDE THE 11TH FLOOR WINDOWS OF A FINANCE MINISTRY BRANCH ALONSO MORALES A 26YEAROLD WINDOWWASHER PERCHES PRECARIOUSLY ON A PULLEY WITH A BENCH THAT MEASURES ABOUT 18BY10 INCHES HIS PLASTIC BUCKET OF SOAPY WATER HANGS FROM THE SIDE OF THE BENCH HE HAS NO SAFETY HARNESS IN THE EVENT OF A FALL THERE ARE NO COWORKERS TO ASSIST HIM ONCE DOWN ON THE GROUND THE SLIGHT MAN SIMPLY SHRUGS ABOUT HIS WORKING CONDITIONS WHAT WILL NAFTA DO FOR HIM THE RICH SAY THAT THE TREATY WILL HELP US SAYS MR MORALES BUT THEY'RE RICH WHO KNOWS ABOUT THE POOR IN CONTRAST 39YEAROLD AUTO WORKER RAMON ALVA SAYS I HAVE A LOT OF PRIDE TO BE A WORKER OF GENERAL MOTORS MR ALVA MAKES TOP PESO 275 AN HOUR AS A WORKER IN THE BLUECOLLAR UPPERCRUST OF MANUFACTURING AS FOR NAFTA IN THE LONG TERM WE HOPE THE TREATY HELPS US BUT FACTORIES ARE DISAPPEARING EVERYWHERE THAT'S THE CONSEQUENCE SO FAR BY NIGHTFALL A SMALL FLOTILLA OF TORTILLA TRUCKS LINES THE WELLLIGHTED STREET AND MEN IN WHITE SHIRTS WITH SCARLET TIES SCURRY ABOUT LIKE THE NEARLY 900 NEW WORKERS AT THE WALMART STORES INC NEW STORE THE TORTILLA WORKERS ARE CLIMBING INTO MEXICO'S LABOR ELITE THEY WORK FOR A COMPANY THAT IS MODERNIZING THE DRIVERS WORK FOR GRUPO INDUSTRIAL MASECA SA A CORNFLOUR PRODUCER THAT CONTROLS TWOTHIRDS OF THE 3 BILLION TORTILLA INDUSTRY ROBERT RUIZ A 26YEAROLD MASECA WORKER SURVEYS THE GROWING CROWD OF MEN NAFTA WILL BE GOOD FOR THE COUNTRY HE SAYS WE HAVE TO COMPETE WITH THE US AND CANADA HE SAYS AS HE PREPARES TO DRIVE HIS DELIVERY ROUTE AND IF JAPAN GETS NEW MACHINERY WE'LL GET BETTER MACHINERY HE ADDS AS HIS WORKDAY BEGINS IT ENDS FOR MARIA LETICIA THE TAMALE VENDOR SHE PACKS UP HER STEAMY WARES TO MEET HER HUSBAND A TAXICAB DRIVER TO BREAK EVEN WITH HER OLD FACTORY SALARY SHE NEEDS ONLY TO SELL 12 TAMALES A DAY SHE'D LIKE MORE OF COURSE AND SO SHE ASKS DO YOU THINK THE AMERICANS WILL COME DO YOU THINK THEY'LL PAY US BETTER 9312270012 931227 LEISURE & ARTS BOOKSHELF ART MEETS COMMERCE IN OLD FLORENCE BY DAVID BROOKS IT IS AMAZING THAT A CULTURE THAT DEVOTED SO MUCH ENERGY TO PAINTING ON WALLS AND CEILINGS COULD ALSO CREATE SOMETHING THAT TOUCHES THE HIGHEST OF MAN'S MORAL ASPIRATIONS NAMELY DOUBLEENTRY ACCOUNTING PROCEDURES YET THE ITALIAN RENAISSANCE DID BOTH DOUBLEENTRY ACCOUNTING WAS INVENTED IN A SMALL TOWN SOUTHEAST OF FLORENCE IN THE LATE 15TH CENTURY AT ABOUT THE SAME TIME MICHELANGELO AND LEONARDO DA VINCI WERE REACHING FOR THEIR BRUSHES THERE HAVE BEEN TIMES IN HUMAN HISTORY WHEN IT WAS THOUGHT PERFECTLY NATURAL THAT ACCOUNTING AND ART WOULD THRIVE TOGETHER DURING THE AMERICAN REVOLUTION FOR EXAMPLE IT WOULD NOT HAVE OCCURRED TO PHILOSOPHES ON EITHER SIDE OF THE ATLANTIC TO SEPARATE ART AND COMMERCE INTO AUTONOMOUS SPHERES THE FREEDOM THAT LED TO GREATNESS IN ONE WOULD NATURALLY PRODUCE GREATNESS IN THE OTHER THEY ASSUMED SINCE THEN IT HAS BEEN MORE COMMON TO ASSUME THAT THE QUALITIES THAT LEAD TO GREAT ACCOUNTING ARE NOT THE SAME AS THOSE THAT PRODUCE GREAT ART PEOPLE TODAY ARE MORE INCLINED TO BELIEVE THAT ART COMES FROM THE EXPLORATION OF PERSONAL CONSCIOUSNESS AND THAT THE HUSTLE AND BUSTLE OF THE MARKETPLACE TEND TO DEBASE COMPROMISE OR DISTRACT THE CREATIVE PERSON RICHARD GOLDTHWAITE METICULOUS ACADEMIC THOUGH HE IS HAS DONE AN INTERESTING THING IN WEALTH AND THE DEMAND FOR ART IN ITALY 13001600 JOHNS HOPKINS UNIVERSITY PRESS 268 PAGES 2995 HE HAS THROWN ART AND COMMERCE BACK TOGETHER AND TREATED THEM AS RELATED PARTS OF THE SAME THING CONSUMERISM THE KEY WORD IN HIS STUDY IS NOT FREEDOM BUT COMPETITION SUCCESSFUL MERCHANT FAMILIES IN FLORENCE COMPETED FOR GLORY BY ERECTING LAVISH PALACES CITYSTATES COMPETED WITH ONE ANOTHER TO BUILD THE MOST BEAUTIFUL MONUMENTS THERE WERE RIVALRIES BETWEEN THE FOLLOWERS OF DIFFERENT SAINTS IF THE SPONSOR OF ONE OF THE SIDE CHAPELS IN THE LOCAL CATHEDRAL INSTALLED AN ESPECIALLY BEAUTIFUL ALTAR PAINTING THE SPONSORS OF ALL THE OTHER CHAPELS FELT PRESSURE TO UPGRADE AND OF COURSE ARTISTS COMPETED FOR WORK MR GOLDTHWAITE IS NOT JUMPING INTO THE 500YEAROLD DEBATE OVER WHY FLORENCE PRODUCED SO MUCH GREAT ART HE'S FOCUSING ON QUANTITY NOT QUALITY AND TRYING TO EXPLAIN WHY THE ITALIAN CITYSTATES PRODUCED SO MUCH OF THE STUFF HE SPENDS MUCH OF HIS BOOK LOOKING FOR FACTORS THAT DISTINGUISH THE ITALIAN CITYSTATES FROM OTHER SOCIETIES WHERE DEMAND FOR ART WAS MUCH LOWER ITALIAN SOCIETY WAS MORE FLUID THAN OTHER MORE TIGHTLY CONTROLLED NATIONS FOR EXAMPLE WEALTH WAS LESS CONCENTRATED IN MOST NATIONS OF THE TIME ONLY THE TOP 1 OF THE POPULATION WAS MAKING REAL MONEY BUT IN FLORENCE A THIRD OF ALL HOUSEHOLDS HAD THEIR HEADS ABOVE WATER MOREOVER WHEN FAMILIES MADE GREAT FORTUNES THEY DID NOT SETTLE INTO SEMIFEUDAL TORPOR IN THE COUNTRYSIDE THEY REMAINED IN THE CITY AND CONTINUED AS MERCHANTS KEEPING THEIR WEALTH LIQUID FOR SEVERAL GENERATIONS THE MEDICI CLUNG TO THEIR MERCHANT STATUS AND REJECTED ARISTOCRATIC TRAPPINGS URBANITES AND ARRIVISTES TEND TO SHELL OUT MORE IN ORDER TO BE AT THE CUTTING EDGE THAN COUNTRY SQUIRES WHO LOUNGE ABOUT ON INHERITED FURNITURE THE VOLATILITY OF ECONOMIC LIFE ACCOMPANIED A RELIGIOUS RESTLESSNESS MR GOLDTHWAITE NOTES THE DEMAND FOR RELIGIOUS SERVICES BOOMED AS THE LAITY BECAME MORE INVOLVED IN THE OPERATION OF CHURCHES WITH SOME CHURCHES PERFORMING AS MANY AS 100 MASSES A DAY THERE WAS GREAT DEMAND AMONG THE WEALTHY TO SPONSOR CHAPELS MONASTERIES COULD DEFRAY COSTS FOR A CHURCH BY SELLING OFF CHAPEL SPACE AND THE EVENTUAL SIZE OF THE CHURCH COULD HAVE MORE TO DO WITH THE DEMAND FOR CHAPELS THAN THE NUMBER OF CONGREGANTS THERE WAS AN EXPLOSION OF NEW ORDERS CONFRATERNITIES MONASTERIES AND OTHER RELIGIOUS ORGANIZATIONS WITH MANY OF THE FLEDGLING INSTITUTIONS FOLDING AFTER A SHORT TIME ONE CONVENT IN FLORENCE IN 1478 ABSORBED NUNS FROM NO FEWER THAN SIX CONVENTS THAT HAD CLOSED THEIR DOORS IN THAT YEAR AND STILL THE NUMBER OF NEW ORGANIZATIONS IN THOSE YEARS EXCEEDED THE NUMBER THAT FOLDED EACH NEW CHAPEL EACH NEW ORDER EACH NEW REFORM BROUGHT MORE DEMAND FOR RELIGIOUS ART THESE RICH FLORENTINES SURROUNDED THEMSELVES WITH IMAGES AND THEY BELIEVED THAT WEALTH WAS A MORAL CHALLENGE AND THAT MONEY SHOULD BE USED TO MANIFEST A PERSON'S INNATE DIGNITY AIMING AT AN ACADEMIC AUDIENCE MR GOLDTHWAITE'S WRITING IS CLEAR BUT RARELY PLEASURABLE ATONAL HE NEVER CAPTURES THE MIXTURE OF HIGH ASPIRATION AND LOW CUNNING THAT WAS PART OF THE FLORENTINE HUNGER FOR ART AND GRANDEUR MOREOVER HIS WAY OF LOOKING AT HIS WHOLE SUBJECT IS QUITE DIFFERENT FROM THE GENERAL READER'S HE IS USING THE CONSUMPTION OF ART IN ORDER TO PUSH BACK THE ORIGIN OF CONSUMERISM BUT TO MOST NONACADEMICS THE DEBATE ABOUT WHEN CONSUMERISM BEGAN IS ARBITRARY SINCE NOBODY AGREES ON WHAT CONSUMERISM IS YOU CAN PICK ANY DATE AND THEN ADAPT A DEFINITION TO FIT YOUR NUMBER BUT WHAT MR GOLDTHWAITE HAS DONE IS TO DOCUMENT SUPERBLY HOW FLORENTINE ART WAS PRODUCED IN THE CONTEXT OF A RAMBUNCTIOUS MARKETPLACE MR BROOKS IS DEPUTY EDITORIAL PAGE EDITOR OF THE WALL STREET JOURNAL EUROPE 9312270010 931227 AUTOS ADDING OPTIONS HELPS CAR FIRMS INCREASE PRICES BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL A YEAR AGO CHRYSLER CORP INTRODUCED THE CONCORDE SEDAN AND SURPRISED CRITICS BY EQUIPPING IT WITH A 24VALVE ENGINE AND DUAL AIR BAGS FOR ONLY 18341 TWELVE MONTHS AND FOUR PRICE INCREASES LATER THE SAME CAR COSTS 19457 1116 MORE THAT'S A 6 INCREASE MORE THAN DOUBLE THE RATE OF INFLATION BUT DESPITE THE HIGHER PRICE THE CAR IS SELLING SO WELL THAT NEXT YEAR CHRYSLER WILL EXPAND CONCORDE PRODUCTION TO A SECOND PLANT ADDING CAPACITY FOR 90000 SEDANS A YEAR BY THE TIME JANUARY ROLLS AROUND THE AVERAGE CAR PRICE IN THE US WILL HAVE JUMPED 1000 OR 56 TO 18800 FROM A YEAR AGO SAYS BERNARD G CAMPBELL AN AUTO ANALYST WITH DRI/MCGRAW HILL MEANWHILE THE US CAR AND TRUCK MARKET IS UP 8 SO FAR THIS YEAR AND IT IS EXPECTED TO CONTINUE CLIMBING AND JUST LAST WEEK GENERAL MOTORS CORP ANNOUNCED ITS SECOND PRICE INCREASE FOR THE 1994 MODEL YEAR THE TWO INCREASES MEAN 1994 GM CARS WILL BE AN AVERAGE OF 450 MORE EXPENSIVE THAN 1993 CARS WERE JUST A FEW MONTHS AGO WHY ARE CAR PRICES CLIMBING SO STEADILY THE YEN'S CLIMB OVER THE PAST YEAR HAS DRIVEN UP PRICES ON JAPANESE CARS AND GIVEN THE BIG THREE AN OPPORTUNITY TO INCREASE PRICES TOO ANOTHER FACTOR LOW INTEREST RATES AND THE GROWING POPULARITY OF LEASING HAVE CUT MONTHLY FINANCE PAYMENTS AND ALL THAT HAS HELPED KEEP DEMAND STRONG FOR CARS LOADED WITH THE KINDS OF EXTRAS FOUND IN A CONCORDE INDEED DAVID MCCAMMON VICE PRESIDENT OF FINANCE AT FORD MOTOR CO SAYS CAR PRICES ARE CLIMBING BECAUSE BUYERS ARE CHOOSING MORE EXPENSIVE VEHICLES FORD EXPLORERS OVER FESTIVAS AND THEN WANT THEM LOADED WITH AIR CONDITIONING LEATHER AND POWER EVERYTHING AIR BAGS ALONE WHICH BARELY EXISTED FIVE YEARS AGO AND NOW ARE FOUND ON ALMOST ALL NEW MODELS HAVE HELPED DRIVE UP PRICES BY MORE THAN 500 A VEHICLE CONSIDER DIANE YANAWAY A FORT WORTH TEXAS ACCOUNT MANAGER FOR A UTILITY COMPANY WHO IS DRIVING A 1979 NISSAN SHE'S SHOPPING FOR A NEW CAR AND CAN'T SEEM TO STEER HERSELF AWAY FROM OPTIONS THAT COULD DRIVE THE PRICE OF A CAMRY OR AN ACURA FROM ABOUT 17000 TO ABOUT 25000 WHEN WE STARTED LOOKING I FOR SURE WANTED A CLOTH INTERIOR MS YANAWAY SAYS IT'S SO HOT IN TEXAS IN THE SUMMER TIME THAT I THOUGHT LEATHER WOULD BE UNCOMFORTABLE BUT THEN I STARTED LOOKING AT LEATHER SEATS AND THEY'RE SO PRETTY LEATHER ISN'T ALL MS YANAWAY WANTS A CAR WITH WOOD GRAIN IN THE DASHBOARD POWER MIRRORS WINDOWS AND LOCKS AND A CD PLAYER RONALD L BALDWIN A PEDIATRICIAN IN MAGNOLIA ARK WHO'S BUYING AN ACCORD FOR HIS SON CHRISTIAN SAYS THAT FOR HIMSELF HE WOULD HAVE BOUGHT A STRIPPED DOWN MODEL FOR LESS THAN 15000 BUT FOR HIS SON HE WANTED AN ACCORD WITH ANTILOCK BRAKES IN ADDITION TO ANTILOCK BRAKES THE 17300 CAR THEY'VE DECIDED ON HAS POWER WINDOWS AND LOCKS DELUXE FLOOR MATS AND A CD PLAYER IN ADDITION WHAT USED TO BE CONSIDERED EXTRAS ARE BEING BUILT INTO CARS AT THE FACTORY WE USED TO INSTALL ALL THE AIR CONDITIONERS IN OUR ACURA STORE SAYS STEPHEN P CUSHMAN THE OWNER OF EIGHT JAPANESE DEALERSHIPS IN SAN DIEGO BUT NOW THEY ALL COME WITH FACTORY AIR SIX YEARS AGO 85 OF USASSEMBLED CARS WERE BUILT WITH AIR CONDITIONING IN 1992 THAT WAS UP TO 94 ACCORDING TO WARD'S AUTOMOTIVE REPORTS AN INDUSTRY NEWSLETTER SIMILARLY SIX YEARS AGO 48 HAD POWER DOOR LOCKS IN 1993 77 DO THE DEMAND FOR SAFETY EQUIPMENT IS INCREASING EVEN MORE RAPIDLY ANTILOCK BRAKES ARE NOW ON MORE THAN 40 OF USMADE CARS UP FROM 4 SIX YEARS AGO CAR MAKERS TRY TO KEEP THE COST DOWN ON PACKAGES OF OPTIONS FOR ONE THING FIXED OPTION PACKAGES SIMPLIFY MANUFACTURING CAR MAKERS ALSO USE DISCOUNTS ON GROUPS OF OPTIONS TO WALK UP CAR BUYERS OR TRY TO PERSUADE THEM TO SPEND MORE ON A CAR THAT'S BECAUSE PROFITS ARE BIGGER ON A DISCOUNTED CAR THAT'S LOADED THAN ON A STRIPPEDDOWN MODEL OLDSMOBILE IS SELLING A SPECIALLY PACKAGED CUTLASS SUPREME WITH POWER LOCKS WINDOWS AND MIRRORS ANTILOCK BRAKES AND CRUISE CONTROL FOR 17195 THE SAME CAR WOULD COST WELL OVER 18000 IF THE OPTIONS WERE ADDED SEPARATELY TO A BASE CAR SOME OF THE NEW FEATURES INCREASING THE PRICE OF CARS ARE NOT OPTIONS BY 1998 FEDERALLY MANDATED SAFETY AND POLLUTIONCONTROL EQUIPMENT ALREADY ON THE BOOKS INCLUDING SIDEIMPACT BEAMS AND CATALYTIC CONVERTERS THAT WORK WHEN THE ENGINE IS COLD WILL ADD 1400 TO THE COST OF NEW CARS AND 2000 TO PICKUPS MINIVANS AND OTHER LIGHT TRUCKS SAYS CHRISTOPHER CEDERGREN AN AUTOMOTIVE CONSULTANT WITH THE CALIFORNIABASED AUTOPACIFIC GROUP INC SOME ECONOMISTS WORRY THAT STEADILY INCREASING CAR PRICES WILL EVENTUALLY MEAN A DROP IN AUTO SALES BUT AUTO MAKERS AND THEIR DEALERS ARE OPTIMISTIC THAT LEASING WILL CONTINUE TO GROW MAKING CARS MORE AFFORDABLE AT GERALD J SEINER'S 10 SALT LAKE CITY CAR DEALERSHIPS LEASING UNTIL RECENTLY ACCOUNTED FOR ONLY ABOUT 10 OF HIS BUSINESS HE SAYS BUT HE'S TEACHING HIS SALES STAFF ABOUT LEASING AND AS A RESULT EXPECTS LEASING TO ACCOUNT FOR 30 OF HIS BUSINESS SOON MR SEINER HAS ALSO INVESTED IN A KIA MOTORS CO DEALERSHIP THE KOREAN CAR MAKER THAT IS PLANNING TO BEAT ITS JAPANESE AND US COMPETITION ON PRICE 9312270009 931227 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED EIGHT NEW LISTINGS INCLUDING FIVE INITIAL PUBLIC OFFERINGS AND THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 15 NEW LISTINGS INCLUDING 14 INITIAL OFFERINGS THE BIG BOARD BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS COLUMBUS REALTY TRUST DALLAS UNDER CLB A REAL ESTATE INVESTMENT TRUST CORPORATE HIGH YIELD FUND II INC PLAINSBORO NJ KYT A CLOSEDEND FUND EMERGING MARKETS INFRASTRUCTURE FUND INC NEW YORK EMG A CLOSEDEND FUND SCHRODER ASIAN GROWTH FUND INC NEW YORK SHF A CLOSEDEND FUND AND SALOMON BROTHERS WORLDWIDE INCOME FUND INC NEW YORK SBW A CLOSEDEND FUND THE BIG BOARD ALSO ADDED THE FOLLOWING CYTEC INDUSTRIES INC WEST PATERSON NJ CYT A MAKER OF CHEMICAL PRODUCTS AND TECHNOLOGIES A SPINOFF FROM AMERICAN CYANAMID CO MAXXIM MEDICAL INC SUGAR LAND TEXAS MAM A MAKER OF SPECIALTY MEDICAL PRODUCTS PREVIOUSLY TRADED ON THE AMERICAN STOCK EXCHANGE AND OILDRI CORP OF AMERICA CHICAGO ODC A MAKER OF ABSORBENT PRODUCTS AND TECHNOLOGIES PREVIOUSLY TRADED OVERTHECOUNTER THE NASDAQ NATIONAL MARKET ADDED THE FOLLOWING INITIAL OFFERINGS PACIFIC CREST CAPITAL INC AGOURA HILLS CALIF PCCI A HOLDING COMPANY GRYPHON HOLDINGS INC NEW YORK GRYP AN INSURER NATIONAL DENTEX CORP FRAMINGHAM MASS NADX A DENTAL LABORATORY OPERATOR NORTH BANCSHARES INC CHICAGO NBSI A ONEBANK HOLDING COMPANY PERSEPTIVE TECHNOLOGIES II CORP CAMBRIDGE MASS UNITS CONSISTING OF ONE COMMON SHARE AND ONE WARRANT PTCCZ A RESEARCH COMPANY DEVELOPING RESEARCH OF PERSEPTIVE BIOSYSTEMS INC CARELINE INC IRVINE CALIF CRLN A PROVIDER OF EMERGENCY CARE INTERPORE INTERNATIONAL IRVINE CALIF BONZ A BIOMATERIALS COMPANY PSB HOLDINGS CORP XENIA OHIO PSBX A ONEBANK HOLDING COMPANY WHITE RIVER CORP WHITE PLAINS NY WHRC A SPINOFF OF FUND AMERICAN HOLDINGS INC AMERICAN RECREATION CO COMMACK NY AMRE A DISTRIBUTOR OF BICYCLES AND RELATED PARTS AND ACCESSORIES FIRST BANCSHARES INC MOUNTAIN GROVE MO FBSI A HOLDING COMPANY LAKEVIEW SAVINGS BANK PATERSON NJ LVSB A MUTUAL SAVINGS BANK SOUTHWEST BANCORP INC STILLWATER OKLA OKSB A ONEBANK THE NASDAQ MARKET ALSO ADDED CALLNET ENTERPRISE INC WILLOWDALE ONTARIO CNEBF A TELECOMMUNICATIONS SERVICE COMPANY CALLNET PREVIOUSLY TRADED ON THE TORONTO STOCK EXCHANGE THE AMEX BEGAN TRADING LEHMAN BROTHERS YIELD ENHANCED EQUITYLINKED DEBT SECURITIES TIED TO AMGEN COMMON STOCK UNDER AYN THE CHICAGO BOARD OPTIONS EXCHANGE SAID IT WILL BEGIN TRADING OPTIONS ON BOTH GLENAYRE TECHNOLOGIES INC AND PANAMERICAN BEVERAGES INC ON THURSDAY 9312270008 931227 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ICF KAISER INTERNATIONAL INC 125 MILLION OF UNITS CONSISTING OF DEBT AND EQUITY WARRENTS VIA DILLON READ & CO ESMOR CORRECTIONAL SERVICES INC INITIAL 833333 SHARES VIA JANNEY MONTGOMERY SCOTT INC SAN BERNARDINO COUNTY CALIF 289 MILLION CERTIFICATES OF PARTICIPATION VIA A MERRILL LYNCH & CO GROUP REEDY CREEK IMPROVEMENT DISTRICT FLA 241 MILLION OF MBIAINSURED REVENUE REFUNDING BONDS VIA A MERRILL LYNCH GROUP 9312270007 931227 TECHNOLOGY MEDTRONIC TO BUY ELECTROMEDICS INC FOR 973 MILLION MINNEAPOLIS MEDTRONIC INC ENDING A BIDDING BATTLE SAID IT AGREED TO ACQUIRE ELECTROMEDICS INC FOR STOCK AND CASH VALUED AT ABOUT 973 MILLION MEDTRONIC WHICH IS THE WORLD'S LEADING MAKER OF CARDIAC PACEMAKERS AGREED TO BUY THE PARKER COLO MANUFACTURER OF BLOODRECYCLING DEVICES FOR 6875 A SHARE UNDER THE AGREEMENT ELECTROMEDICS SHAREHOLDERS WOULD RECEIVE MEDTRONIC STOCK CASH OR A COMBINATION IN NEW YORK STOCK EXCHANGE TRADING THURSDAY MEDTRONIC CLOSED AT 8275 UNCHANGED ELECTROMEDICS SHARES CLOSED AT 6375 DOWN 625 CENTS IN OVERTHECOUNTER TRADING THE PURCHASE PRICE IS ABOVE AN OFFER OF SLIGHTLY LESS THAN 96 MILLION THAT MEDTRONIC MADE ON DEC 12 THAT EARLIER BID RAISED THE ANTE IN A BIDDING WAR FOR ELECTROMEDICS WITH ST JUDE MEDICAL INC ST JUDE ST PAUL MINN THE WORLD'S BIGGEST MANUFACTURER OF MECHANICAL HEART VALVES OFFERED ABOUT 90 MILLION ST JUDE'S PRESIDENT AND CHIEF EXECUTIVE OFFICER RONALD A MATRICARIA SAID OF THE MEDTRONICELECTROMEDICS AGREEMENT WE DON'T BELIEVE IT IS IN THE BEST INTEREST OF ST JUDE MEDICAL'S SHAREHOLDERS TO INCREASE OUR OFFER FOR ELECTROMEDICS ST JUDE INDICATED HOWEVER THAT IT STILL PLANS TO DIVERSIFY BEYOND HEART VALVES SAYING THAT IT WILL IDENTIFY OPPORTUNITIES IN THE MEDICALDEVICE INDUSTRY MINNEAPOLISBASED MEDTRONIC PRIMARILY A MAKER OF DEVICES THAT CORRECT HEARTRHYTHM PROBLEMS ALSO MANUFACTURES BLOOD PUMPS OXYGENATORS AND BLOODMONITORING DEVICES USED IN CARDIAC SURGERY ELECTROMEDICS MAKES MACHINES THAT EXTRACT PURIFY AND THEN PUMP A PATIENT'S OWN BLOOD BACK INTO THE BODY DURING SURGERY 9312270006 931227 HEARD ON THE STREET CONVERTIBLE BONDS MIGHT BE WORTH A RIDE BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL WITH THE STOCK MARKET HOVERING HIGH THE CAUTIOUS CONTINGENT IS TAKING A CLOSE LOOK AT CONVERTIBLE BONDS THESE BONDS WHICH CAN BE CONVERTED INTO A PRESET NUMBER OF SHARES OF THE ISSUING COMPANY'S COMMON STOCK GIVE NERVOUS INVESTORS A WAY TO TAKE A FEW CHIPS OFF THE STOCK MARKET TABLE AND STILL ENJOY SOME GAINS IF THE BULL MARKET IN STOCKS CONTINUES ANDREW HANSON DIRECTOR OF EQUITY RESEARCH IN NEW YORK FOR THE FRENCH MERCHANT BANK LEPERCQ DE NEUFLIZE SAYS HE NORMALLY STICKS STRICTLY TO STOCKS BUT LATELY HE'S SPRINKLING HIS PORTFOLIO WITH CONVERTIBLES GIVEN WHERE THE MARKET IS IT GIVES ME SOME LEVEL OF DOWNSIDE PROTECTION HE SAYS MR HANSON HAS COMPANY MONEY MANAGERS ARE PAYING INCREASED ATTENTION TO CONVERTIBLES AND SALES OF CONVERTIBLEBOND MUTUAL FUNDS ARE PICKING UP THE SELLING POINT IS THAT THESE STOCKBOND HYBRIDS PROVIDE MORE THAN HALF THE POTENTIAL GAIN OF STOCKS WITH LESS THAN HALF THE RISK AND MONEY MANAGERS SAY THERE ARE SOME ATTRACTIVE CONVERTIBLE BONDS OUT THERE AMONG THOSE NAMED BY VARIOUS MANAGERS ARE CONVERTIBLES ISSUED BY EASTMAN KODAK FOREST OIL GENERAL INSTRUMENT AND LAIDLAW CONVERTIBLES DON'T PROTECT AGAINST EVERY DOWNTURN THEY WERE A FLIMSY FALLOUT SHELTER DURING THE CRASH OF 1987 EARLY THAT YEAR RECALLS DON PHILLIPS OF MORNINGSTAR MUTUAL FUNDS PEOPLE PILED INTO CONVERTIBLEBOND MUTUAL FUNDS BECAUSE THEY WERE WORRIED ABOUT THE LOFTY VALUATIONS ON STOCKS RIGHT WORRY WRONG CURE IN OCTOBER 1987 BOTH STOCKS AND CONVERTIBLES FELL MORE THAN 21 MARKET VETERANS AGREE THAT INVESTORS SHOULDN'T EXPECT A CONTINUATION OF THE REDHOT PERFORMANCE THAT CONVERTIBLES HAVE SHOWN IN 1992 AND FOR THE FIRST NINE MONTHS OF 1993 DURING THIS TIME THEY HAVE OUTPERFORMED BOTH STOCKS AND BONDS IT HAS BEEN THE BEST OF ALL POSSIBLE WORLDS FOR CONVERTIBLES WITH DECLINING INTEREST RATES A RISING STOCK MARKET AND SMALL STOCKS OUTPERFORMING BIG ONES MOST CONVERTIBLES ARE ISSUED BY SMALLER COMPANIES UNFORTUNATELY AFTER TWO TERRIFIC YEARS FOR CONVERTIBLES FINDING MARKETS IN THE SEGMENT HAS BECOME VERY DIFFICULT SAYS LANNY SACHNOWITZ COMANAGER OF AIM CHARTER FUND IN HOUSTON THE MOST ATTRACTIVE MERCHANDISE HAS BEEN CALLED OUT OF THE MARKET BECAUSE STOCK PRICES ROSE ENOUGH TO MAKE IT WORTHWHILE TO CONVERT THE BONDS INTO STOCK HE SAYS STILL HE THINKS THERE ARE A FEW BARGAINS LEFT ONE IS A GENERAL INSTRUMENT CONVERTIBLE THAT MATURES IN JUNE 2000 ITS COUPON RATE THE INTEREST RATE WHEN THE BOND WAS ORIGINALLY ISSUED IS 5 AND IT IS TRADING NOW TO YIELD ABOUT 39 THE COMPANY MAKES HARDWARE FOR THE CABLE AND TELEVISION INDUSTRIES EVEN THOUGH MR SACHNOWITZ BELIEVES IT WILL BE MANY YEARS BEFORE THE INFORMATION HIGHWAY IS FULLY PAVED HE THINKS GENERAL INSTRUMENT HAS GOOD PROSPECTS MR SACHNOWITZ ALSO LIKES A CONVERTIBLE ISSUED BY BANCO NACIONAL DE MEXICO WHICH IS BOTH A MAJOR BANK AND A MAJOR BROKERAGE HOUSE IN MEXICO IT IS TRADING AT ONLY A 13 PREMIUM MEANING THAT THE STOCK NEEDS TO RISE ONLY 13 TO MAKE THE BONDS WORTH CONVERTING THE CURRENT YIELD IS ABOUT 57 OTHER CONVERTIBLES IN MR SACHNOWITZ'S SATCHEL ARE THOSE OF STERLING SOFTWARE OMNICARE AND QUANTUM HEALTH RESOURCES MICHAEL ROSEN MANAGER OF BOND FUND FOR GROWTH IN ROCHESTER NY ESTIMATES THAT EASTMAN KODAK CONVERTIBLES HAVE A 90 UPSIDE AND 40 DOWNSIDE AS A ROCHESTER RESIDENT HE SAYS HE HAS OBSERVED A LOT OF BUREAUCRACY AT KODAK THEY HOLD A LOT OF MEETINGS BUT HE THINKS THE COMPANY IS GETTING MORE COMPETITIVE FOR THE FIRST TIME IN 10 YEARS I HAVE HIGH HOPES FOR KODAK HE SAYS MR ROSEN SAYS HE MAY WELL BUY A SECURITY RECENTLY ISSUED BY LEHMAN BROTHERS WHICH AMOUNTS TO A SYNTHETIC CONVERTIBLE ON AMGEN THE BIOTECHNOLOGY COMPANY LEHMAN CALLS THESE SECURITIES YEELDS STANDING FOR YIELDENHANCED EQUITYLINKED DEBT SECURITIES AMGEN YEELDS PROVIDE AN INTEREST PAYMENT OF ABOUT 65 A YEAR QUITE A CONTRAST TO AMGEN COMMON STOCK WHICH PAYS NO DIVIDEND CAPITAL APPRECIATION IS LIMITED TO ABOUT 40 OVER A THREEYEAR PERIOD IF AMGEN STOCK CLOSING AT 46 1/2 THURSDAY RISES TO 63 OR MORE WITHIN THREE YEARS AN INVESTOR IN AMGEN YEELDS WOULD MAKE ABOUT 18 A YEAR MR ROSEN FIGURES IT OPENS UP AMGEN AS AN INVESTMENT TO A FAR MORE CONSERVATIVE CLIENTELE HE SAYS AN ODDBALL CONVERTIBLE THAT MR ROSEN LIKES IS ONE JUST ISSUED BY LAIDLAW WHOSE MAIN BUSINESSES ARE BUS TRANSPORTATION AND WASTE DISPOSAL LAIDLAW ALSO OWNS A STAKE IN ADT A MAKER OF ALARM SYSTEMS THE BONDS ARE CONVERTIBLE INTO ADT SHARES MR ROSEN CONSIDERS LAIDLAW A SOLID COMPANY AND ADT A DECENT TURNAROUND SPECULATION MR HANSON OF LEPERCQ DE NEUFLIZE IS PARTIAL TO THE CONVERTIBLES OF FOREST OIL WHICH DESPITE ITS NAME IS MAINLY A NATURALGAS PRODUCER WALL STREET HE SAYS SHIES AWAY FROM THE COMPANY BECAUSE IT IS WARY OF THE DORN FAMILY WHICH PURSUED A HIGHRISK STRATEGY OF WILDCAT DRILLING IN THE GULF OF MEXICO WHEN IT HAD TIGHT CONTROL OVER THE COMPANY THROUGH SUPERVOTING STOCK THE FAMILY NOW CONTROLS ABOUT 10 OF THE STOCK FOREST IS A WELLRUN COMPANY WITH LOW PRODUCTION COSTS MR HANSON SAYS THOUGH IT HAS HEAVY DEBT THE DEBT BURDEN HAS BEEN REDUCED AND HE CONSIDERS THE UNDERLYING COMMON STOCK SEVERELY UNDERPRICED BASED ON THE COMPANY'S CASH FLOW FOR PEOPLE WHO PREFER TO INVEST THROUGH MUTUAL FUNDS THERE ARE CURRENTLY SOME 25 CONVERTIBLEBOND FUNDS ACCORDING TO MORNINGSTAR MUTUAL FUNDS THE FUND WITH THE BEST RECORD SINCE JAN 1 1987 IS BOND FUND FOR GROWTH WITH A CUMULATIVE RETURN OF 1044 CLOSE BEHIND ARE PHOENIX CONVERTIBLE 1016 MAINSTAY CONVERTIBLE 1013 PUTNAM CONVERTIBLE INCOMEGROWTH 1003 AND AMERICAN CAPITAL HARBOR 1003 9312270005 931227 RULES ARE ISSUED FOR BIDS ON PROJECTS IN VIETNAM WASHINGTON THE TREASURY ISSUED REGULATIONS SPELLING OUT WHEN COMPANIES AND INDIVIDUALS CAN BID ON CERTAIN DEVELOPMENT PROJECTS IN VIETNAM THE RULES PUT INTO EFFECT A DECISION BY PRESIDENT CLINTON IN SEPTEMBER TO EASE THE LONGSTANDING EMBARGO ON US PARTICIPATION IN SUCH PROJECTS MR CLINTON SAID US CITIZENS COULD PARTICIPATE IN PROJECTS PROPOSED OR APPROVED BY THE WORLD BANK OR 23 OTHER INTERNATIONAL DEVELOPMENT INSTITUTIONS UNDER THE TREASURY RULES PROJECTS ARE OPEN TO US PARTICIPANTS REGARDLESS OF THE LEVEL OF PARTICIPATION BY THE INTERNATIONAL INSTITUTIONS THE TREASURY ALSO SAID US BUSINESSES CAN INVEST IN JOINT VENTURES SET UP EXCLUSIVELY TO WORK ON APPROVED PROJECTS WITH VIETNAM DESPITE THE NEW RULES THE GENERAL RESTRICTIONS ON US FINANCIAL TRANSACTIONS WITH VIETNAM WHICH HAVE BEEN IN PLACE FOR MORE THAN 30 YEARS REMAIN IN EFFECT 9312270003 931227 ECONOMY FED POLICY MAKERS KEPT STEADY STANCE ON INTEREST RATES BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL RESERVE POLICY MAKERS UNANIMOUSLY DECIDED AT THEIR NOV 16 MEETING TO HOLD INTEREST RATES STEADY AND TO LEAN NEITHER TOWARD HIGHER NOR LOWER RATES IN THE ENSUING WEEKS THE FED DISCLOSED THE FED'S POLICYMAKING OPEN MARKET COMMITTEE MET TUESDAY BEHIND CLOSED DOORS AND HASN'T SIGNALED ANY IMMEDIATE CHANGE IN INTEREST RATES SINCE THEN THE SUMMARY OF THE NOVEMBER MEETING RELEASED LAST WEEK AFTER THE CUSTOMARY LAG SAID FED OFFICIALS AGREED THAT DESPITE VARIOUS INDICATIONS OF A PICKUP IN ECONOMIC GROWTH THE UNDERLYING ECONOMIC SITUATION AND THE OUTLOOK FOR INFLATION HADN'T CHANGED SUFFICIENTLY TO WARRANT AN ADJUSTMENT IN MONETARY POLICY THE FED HAS BEEN HOLDING SHORTTERM INTEREST RATES AT HISTORICALLY LOW LEVELS SINCE SEPTEMBER 1992 THE RECENT STRENGTH OF THE ECONOMY HAS SPARKED SPECULATION ABOUT WHEN THE FED WILL BEGIN TO MOVE RATES UP AT THEIR NOVEMBER MEETING ACCORDING TO THE 22PAGE SUMMARY FED OFFICIALS REITERATED THEIR INTENTION OF TAKING EARLY ACTION TO ARREST INCIPIENT INFLATIONARY PRESSURES BEFORE THEY GATHERED STRENGTH THEY SAID THAT IN APPROPRIATE CIRCUMSTANCES A PROMPT POLICY MOVE THAT IS AN INCREASE IN SHORTTERM INTEREST RATES MIGHT ALLAY FINANCIAL MARKET CONCERNS ABOUT INFLATION AND KEEP THE BOND MARKET FROM PUSHING UP LONGTERM RATES BUT THE OFFICIALS ADDED THAT NEITHER STATISTICAL NOR ANECDOTAL EVIDENCE SUGGESTED ANY INTENSIFICATION OF INFLATION AT THIS POINT THE VOTING MEMBERS OF THE OPEN MARKET COMMITTEE ARE THE SEVEN MEMBERS OF THE FEDERAL RESERVE BOARD AND PRESIDENTS OF FIVE OF THE 12 REGIONAL FED BANKS WHO SERVE IN ROTATION 9312270002 931227 INTERNATIONAL TWO CHEMICAL FIRMS IN MITSUBISHI GROUP REACH PACT ON MERGER SPECIAL TO THE WALL STREET JOURNAL TOKYO TWO MAJOR JAPANESE CHEMICAL COMPANIES MITSUBISHI KASEI CORP AND MITSUBISHI PETROCHEMICAL CO AGREED TO MERGE IN A MOVE WIDELY SEEN AS A WAY OF STRENGTHENING THE COMPANIES' PETROCHEMICAL OPERATIONS AMID THE WEAK JAPANESE ECONOMY FRIDAY THE TWO COMPANIES WHICH BELONG TO THE MITSUBISHI GROUP SAID THEY WILL EXCHANGE 13 SHARES OF MITSUBISHI KASEI FOR EACH SHARE OF MITSUBISHI PETROCHEMICAL JAPAN'S LARGEST PETROCHEMICAL MAKER THE MOVE WAS PRECIPITATED BY THE ECONOMIC DOWNTURN AND FALLING REVENUE AT THE COMPANIES THE COMPANIES HAVE A LONG HISTORY OF COOPERATION INCLUDING A 5050 JOINT VENTURE RESINS SALES COMPANY THE CREATION TENTATIVELY NAMED MITSUBISHI KAGAKU KK WILL BE A CLEAR INDUSTRY LEADER IN JAPAN TOPPING OTHER MAJOR PLAYERS SUCH AS SUMITOMO CHEMICAL CO AND ASAHI CHEMICAL INDUSTRY CO AKIRA MIURA PRESIDENT OF MITSUBISHI PETROCHEMICAL SAID THE NEW COMPANY WILL COMMAND A MARKET SHARE OF ROUGHLY 22 IN ETHYLENE IT WILL BE ESTABLISHED OCT 1 AND CAPITALIZED AT 1404 BILLION YEN 127 BILLION SALES ARE EXPECTED TO BE 118 TRILLION YEN FOR THE FISCAL YEAR ENDING MARCH 31 1996 AND 124 TRILLION YEN THE YEAR AFTER THAT HIROYUKI HORII CHEMICAL INDUSTRY ANALYST FOR YAMAICHI RESEARCH INSTITUTE AN AFFILIATE OF YAMAICHI SECURITIES CO SAID THE MERGER IS LIKELY TO HAVE POSITIVE RESULTS FOR BOTH PARTIES WHEN THE TOKYO STOCK EXCHANGE SUSPENDED THE SHARES OF THE TWO COMPANIES FRIDAY AMID INITIAL REPORTS OF THE ACCORD MITSUBISHI KASEI'S SHARES WERE DOWN 10 YEN NINE CENTS AT 433 YEN AND MITSUBISHI PETROCHEMICAL'S DOWN 19 YEN AT 611 9312270001 931227 CANADA'S GDP IN OCTOBER OTTAWA CANADA'S GROSS DOMESTIC PRODUCT ROSE 01 IN OCTOBER FROM SEPTEMBER SAID STATISTICS CANADA A GOVERNMENT AGENCY THE OCTOBER RISE FOLLOWED GDP INCREASES OF 05 IN SEPTEMBER AND 01 IN AUGUST GDP IS THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED BY A NATION STATISTICS CANADA SAID OCTOBER GDP GROWTH WAS SLOWED BY A 12 DROP IN MINING OUTPUT AND A 06 DECLINE IN CONSTRUCTION ACTIVITY THE DROP IN MINING OUTPUT RESULTED FROM A 105 DECLINE IN DRILLING OPERATIONS BY THE OIL AND GAS INDUSTRY IN OCTOBER 9312270178 931117 FAN APATHY SENDS US SOCCER PLAYERS OVERSEAS FOR KICKS EXPATRIATES HOPE WORLD CUP WILL BRING SPORT HOME AND OUTDRAW LOGROLLING BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL SAARBRUECKEN GERMANY ERIC WYNALDA ONE OF AN ELITE BAND OF WORKERS FROM THE US STARES AT THE INDUSTRIAL LANDSCAPE STRETCHING FOR MILES OUTSIDE HIS LIVINGROOM WINDOW IT'S NOT THE PACIFIC OCEAN THAT'S FOR SURE THE 24YEAROLD SOUTHERN CALIFORNIAN MUTTERS BUT IT'S ALL RIGHT AT LEAST THERE'S A JOB HERE AND A WELLPAYING ONE AT THAT MR WYNALDA WHOM ONE GERMAN NEWSPAPER DUBBED THE BEST IMPORT FROM THE USA SINCE COCACOLA EARNS ABOUT 160000 A YEAR HERE PLAYING SOCCER AS MR WYNALDA STROLLS THROUGH DOWNTOWN SAARBRUECKEN A WORKINGCLASS CITY OF 450000 ON THE FRENCH BORDER A GROUP OF SCHOOLCHILDREN QUICKLY GATHERS TO ASK FOR HIS AUTOGRAPH YOUNG MEN MAKE A DETOUR TO SHAKE AREEK VEENALDA'S HAND IT'S LIKE ALL OF A SUDDEN I'VE BEEN TRANSFORMED INTO SOME KIND OF PROPHET HE WHISPERS TO A COMPANION BUT YOU KNOW WHAT THEY SAY ABOUT PROPHETS IN THEIR OWN COUNTRY MR WYNALDA'S PROWESS GOES UNSUNG IN THE US WHERE SOCCER MERITS ONLY A LOOSELY ORGANIZED SEMIPROFESSIONAL LEAGUE THE SPORT IS HIGHLY POPULAR AT THE YOUTH LEVEL AND ENJOYED A BLIP OF EXCITEMENT IN THE EARLY 1980S WITH THE NORTH AMERICAN SOCCER LEAGUE BUT INTEREST DRIED UP AND A POLL TAKEN LAST YEAR BY THE DALLASBASED SPORTS MARKETING GROUP SHOWED AMERICANS RANK PROFESSIONAL SOCCER 95TH JUST BEHIND DOG SLEDDING AND LOGROLLING IN A LIST OF 124 SPORTS THEY LIKE TO WATCH THINGS COULD CHANGE BY NEXT SUMMER WHEN THE US HOSTS SOCCER'S WORLD CUP FINALS A TOURNAMENT MANY CONSIDER THE MOST PRESTIGIOUS OF ALL INTERNATIONAL SPORTING EVENTS THE 1990 WORLD CUP MATCHES IN ITALY DREW BILLIONS OF TELEVISION VIEWERS WORLDWIDE INTEREST IN THE TOURNAMENT IS TREMENDOUS THE 1990 WORLD CUP MATCHES IN ITALY HOLD THE GLOBAL TELEVISION AUDIENCE RECORD WITH AN ESTIMATED 265 BILLION VIEWERS TUNING IN TO THE FOURWEEK GAMES BY CONTRAST SOME 25 BILLION TV VIEWERS WATCHED THE 2 1/2 WEEK 23RD OLYMPIAD HELD IN LOS ANGELES AS THE 1994 HOST COUNTRY THE US AUTOMATICALLY QUALIFIES FOR A PLACE IN THE WORLD CUP FINALS AND ORGANIZERS SAY TICKET SALES ARE GOING WELL FOR THE 52 MATCHES SCHEDULED TO BE PLAYED IN CITIES ACROSS THE COUNTRY MR WYNALDA ALMOST CERTAIN OF A SPOT ON TEAM AMERICA HOPES THAT PUBLICITY GENERATED BY THE WORLD CUP WILL ENSURE SUCCESS FOR A US PROFESSIONAL LEAGUE PLANNED TO BEGIN IN 1995 HE WOULD LIKE TO COME HOME MR WYNALDA'S FAME IN GERMANY DERIVES IN PART FROM BEING THE FIRST NATIVEBORN AMERICAN EVER TO STAR IN THE NOTORIOUSLY TOUGH BUNDESLIGA THE COUNTRY'S HIGHEST DIVISION HE ALSO GAINED ADMIRERS BY SCORING EIGHT GOALS IN HIS TEAM'S FIRST NINE GAMES LAST YEAR EARNING HIM THE COVETED ABSOLUTE BULL'SEYE STRIKER TITLE FROM A TOP GERMAN SPORTS MAGAZINE MR WYNALDA'S LIGHTHAIRED BLUEEYED GOOD LOOKS AND GENERALLY BRIGHT DISPOSITION INSPIRED DOZENS OF SPORTSWRITERS TO REFER TO HIM AS DER BADEMEISTER THE LIFE GUARD AND SUNNYBOY THAT IN TURN SPAWNED BARECHESTED LAYOUTS OF HIM IN THE NATIONAL PRESS AND OF COURSE AN AVALANCHE OF FAN MAIL PARTICULARLY FROM 12 TO 16YEAROLD GIRLS HE AVERAGES ABOUT 50 LETTERS A WEEK I FIND YOU TOTALLY SWEET AND WILL LOVE YOU ALWAYS READS ONE LETTER WRITTEN IN GERMAN BY NADINE A 15YEAROLD FROM A SAARBRUECKEN SUBURB ADDING TO MR WYNALDA'S LOCAL RECOGNITION FACTOR ARE HIS PICTURES STARING DOWN FROM GIANT BILLBOARDS AT NEARLY EVERY MAJOR SAARBRUECKEN INTERSECTION THIS ENDORSEMENT FOR SCHROEDER THE LOCAL SAUSAGEMAKER EARNS HIM ABOUT 1000 BUT HE ALSO GETS 20 POUNDS OF FREE SAUSAGE A WEEK MOST OF WHICH HE GIVES AWAY TO TEAMMATES ONE OF A HALFDOZEN AMERICANS CURRENTLY PLAYING PROFESSIONAL SOCCER IN EUROPE MR WYNALDA CAUGHT THE EYE OF SAARBRUECKEN COACH PETER NEURURER WHILE PLAYING FOR THE US NATIONAL TEAM WHICH WAS ELIMINATED IN THE FIRST ROUND DURING THE 1990 WORLD CUP IN ITALY HE INITIALLY WAS GIVEN A ONEYEAR CONTRACT IT HAS BEEN EXTENDED BY A YEAR EVER SINCE I WAS ABOUT FIVE YEARS OLD I DREAMED ABOUT PLAYING IN EUROPE MR WYNALDA SAYS THIS IS THE PEAK THE SUMMIT OF SOCCER BUT IT'S LONELY HE ARRIVED IN THIS CITY SPEAKING NO GERMAN AND HIS LONGDISTANCE PHONE BILL THE FIRST MONTH TOTALED 1350 ALTHOUGH IT HAS SINCE BEEN SCALED BACK TO ABOUT 500 YOU START TO LOSE TOUCH WITH YOUR FRIENDS HE SAYS AND HERE THERE'S NOT MUCH TO REPLACE THAT BECAUSE MOST OF THE PLAYERS ARE SETTLED WITH FAMILIES WHILE ON THE FIELD HE FOUND HE FIT IN QUICKLY THE RULES IN GERMANY OFF THE FIELD HAVE OFTEN BEEN BAFFLING THE COACH HAS FORBIDDEN ME TO EAT AT MCDONALD'S BECAUSE HE THINKS THE FOOD IS UNHEALTHY MR WYNALDA SAYS BUT IF A PLAYER WANTS TO HE CAN DRINK BEER AND SMOKE CIGARETTES EXCEPT RIGHT BEFORE GAMES I CAN'T FIGURE THAT OUT ALTHOUGH HE HAS EARNED HIGH MARKS FOR SOCCER SKILLS HE HAS FOUND THE CULTURAL DIVIDE FRUSTRATING AND HIS TEAM'S FINANCIAL DIFFICULTIES DISTRESSING MR WYNALDA CURRENTLY IS NEGOTIATING A TRANSFER TO PLAY FOR A TOP ENGLISH TEAM IN A DEAL THAT COULD NET HIS GERMAN TEAM ABOUT 13 MILLION IN TRANSFER FEES AND MR WYNALDA A BONUS WORTH PERHAPS 15 OF THAT ALONG WITH A YEARLY CONTRACT CLOSE TO 400000 SUCH A PACKAGE WOULD PUT HIM ROUGHLY IN THE TOP QUARTER OF PROFESSIONALSOCCER PLAYERS IN EUROPE CERTAINLY OTHER AMERICANS HAVE HAD IT WORSE IN EUROPE MIDFIELDER PAUL CALIGIURI 29 ALSO A SOUTHERN CALIFORNIA NATIVE PLAYED FOR A PROFESSIONAL TEAM IN THE GRIMY NORTH SEA PORT OF ROHSTOCK FORMERLY IN EAST GERMANY FROM 1989 TO 1991 IT WASN'T A VERY HAPPY TIME IN MY LIFE RECALLS MR CALIGIURI NOW A MEMBER OF THE US NATIONAL TEAM HEADQUARTERED IN CALIFORNIA AND ASSURED OF A PLACE ON TEAM AMERICA HE LIVED IN A TINY BLEAK APARTMENT WITH HIS WIFE WHO STOPPED GOING TO WATCH HER HUSBAND PLAY BECAUSE SHE COULDN'T STAND TO HEAR THE NUMEROUS BANDS OF NEONAZI SKINHEADS CHANTING FOREIGNERS OUT JOHN HARKES A 26YEAROLD MIDFIELDER FROM KEARNY NJ AND A LEADING CANDIDATE FOR TEAM AMERICA CAPTAIN HAD TO WITHSTAND A BARRAGE OF SEEMINGLY GRATUITOUS BLINDSIDE TACKLES AND KICKS IN THE GROIN IN 1991 HIS FIRST YEAR IN ENGLISH PROFESSIONAL SOCCER THE ROUGH PLAY USUALLY WAS FOLLOWED BY TAUNTS OF GO HOME YANK A BIT IRONIC BECAUSE BOTH OF HARKES'S PARENTS WERE BORN IN BRITAIN NEVERTHELESS HE REMAINED AND SAYS HIS TIME IN ENGLAND LARGELY HAS BEEN PLEASANT I'VE MADE A REAL EFFORT TO FIT IN HE SAYS AND HAVING RELATIVES LIVING IN BRITAIN HAS HELPED THE STRAPPING MR HARKES'S HARDNOSED PLAY AND DEFT TOUCH IN SETTING UP GOALS HAS WON HIM A SIZABLE FOLLOWING AT HOME GAMES HE IS GREETED BY RHYTHMIC CHANTS OF OOOH AAAH JOHNNY HARKES AND FANS WAVING AMERICAN FLAGS MR HARKES ALSO HAS GARNERED WHAT MIGHT BE CONSIDERED THE ULTIMATE EXPATRIATE'S COMPLIMENT QUITE OFTEN HARKSIE IS THE BEST PLAYER ON THE PITCH SAYS SIMON CLARK A SPORTS PRODUCER AT BBC RADIO IN CENTRAL ENGLAND AND AFTER TWO FULL SEASONS NOBODY EVEN THINKS OF HIM AS AMERICAN ANY MORE NEVERTHELESS AMERICA'S SOCCER STARS ABROAD AREN'T KEEN TO ASSIMILATE PERMANENTLY INTO THEIR EUROPEAN ASSIGNMENTS OFTEN PEEVED BY THE CONSTANT CLOUD COVER OF THE ENGLISH MIDLANDS MR HARKES IS IN THE PROCESS OF BUYING A HOUSE NEAR CHARLOTTESVILLE VA WHERE HE MET HIS WIFE WHILE AT THE UNIVERSITY OF VIRGINIA MY REAL HOME WILL ALWAYS BE IN THE STATES HE SAYS MR WYNALDA EXPLAINS HIS LONGING THIS WAY I WANT TO LIVE NEAR MY FRIENDS AND FAMILY I WANT TO EAT SCRAMBLED EGGS AND BACON AND BLUEBERRY PANCAKES FOR BREAKFAST AND TO EARN A LIVING IN MY COUNTRY BY DOING WHAT I DO BEST IS THAT A LOT TO ASK SEE RELATED LETTER LETTERS TO THE EDITOR SOCCER IN AMERICA WSJ DEC 27 1993 9311170068 YY93 MM12 9312270046 931119 COMPUTERS FONT WAR THAT'S MY TYPE BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL TYPEFACE FONTS CAN'T BE COPYRIGHTED BUT SOFTWARE CAN SO CAN THE SOFTWARE PROGRAMS THAT NOW CREATE FONTS BE COPYRIGHTED MAYBE NOT EFFECTIVELY IN A CASE CLOSELY WATCHED BY DESKTOP PUBLISHERS AND THE PRINTING INDUSTRY SWFTE INTERNATIONAL LTD A CLOSELY HELD FIRM IN HOCKESSIN DEL HAS RETAINED THE LEGAL RIGHT TO SELL SOFTWARE THAT ESSENTIALLY CLONES MOREEXPENSIVE SOFTWARE USED TO RENDER TYPEFACES ON PERSONAL COMPUTERS THE SUIT IS AN OFFSHOOT OF THE WAY TYPOGRAPHY HAS CHANGED UNTIL 30 YEARS AGO DEVELOPING A TYPEFACE REQUIRED A DESIGNER TO DRAW ON PAPER EVERY LETTER AND NUMERAL IN EVERY POSSIBLE SIZE THEN AN ARTISAN PAINSTAKINGLY CARVED THE LETTERS INTO METAL TYPE IN THE 1960S WHEN PHOTOTYPESETTING APPEARED THE ARTISAN WAS ELIMINATED DURING THE 1980'S PROGRAMMERS DEVELOPED FONTDESIGN PROGRAMS TO COMPUTERIZE THE DESIGN PROCESS TOO THE PROGRAMS AUTOMATICALLY SCALE LETTERS TO ANY POINT SIZE THEY CAN TURN A TYPEFACE INTO BOLDFACE OR ITALIC SO A DESIGNER NEED ONLY POLISH ITS APPEARANCE THEY CAN REUSE PARTS OF OTHER DESIGNS SO ONCE A P' IS DONE MAKING AN R' IS A SNAP THEY CAN ALSO READ A SCANNED VERSION OF SOMEONE ELSE'S FONT AND PRODUCE THE SOFTWARE CODE IT'S BASED ON OR DIRECTLY COPY THE CODE THAT DEFINES LETTERS IN A TYPEFONT PROGRAM THE LETTERS ARE PRODUCED IN A PROCESS LIKE A CHILD'S CONNECTTHEDOTS PICTURE FONT SOFTWARE TELLS A LASER PRINTER TO FIND ON A GRID THE POINTS THAT OUTLINE A LETTER THE SOFTWARE THEN TELLS IT TO DRAW EITHER A STRAIGHT LINE BETWEEN TWO POINTS OR A CURVE THROUGH A SET OF FOUR POINTS TO CREATE AN OUTLINE OF THE LETTER ONCE THE LETTER IS OUTLINED THE SOFTWARE TELLS THE PRINTER TO FILL IN THE SPACE BETWEEN THE LINES WHAT SWFTE PRONOUNCED SWIFTY DID CLAIMED THE FIVE PLAINTIFFS ADOBE SYSTEMS INC BITSTREAM INC FONTSHOP CANADA LTD QED PUBLISHING CO AND EMIGRE GRAPHICS WAS COPY THIS CODE AVOIDING THE COST OF ROYALTIES TO FONT DESIGNERS THE COMPANIES FILED SUIT IN US DISTRICT COURT IN BOSTON ALLEGING COPYRIGHT INFRINGEMENT AND SOFTWARE PIRACY THE PLAINTIFFS' ATTORNEY JAMES J FOSTER OF THE BOSTON FIRM OF WOLF GREENFIELD & SACKS SAID SWFTE'S 4995 TYPECASE III FONT PROGRAM WAS A COPY OF THEIR PROGRAMS THAT COST 100 TO 200 APIECE SWFTE'S ATTORNEY JOEL GOLDHAMMER OF THE PHILADELPHIA FIRM OF PANITCH SCHWARZE JACOBS & NADEL ARGUED THAT SWFTE HAD COPIED ONLY THE POSITIONS OF THE POINTS THAT DEFINE THE FONTS NOT THE FULL FONT PROGRAMS IT USED WIDELY AVAILABLE FONTDESIGN SOFTWARE TO ANALYZE THE PLAINTIFFS' FONTS AND DETERMINE THE DEFINING POINTS AND THE CURVES OR LINES THAT CONNECTED THEM IT SAID THOSE POINTS AND CURVES WERE THE EQUIVALENT OF THE FONTS THEMSELVES AND THEREFORE WEREN'T COPYRIGHTABLE WITHOUT EXPLANATION JUDGE MICHAEL HARRINGTON DENIED A REQUEST FOR A TEMPORARY RESTRAINING ORDER THE PLAINTIFFS FIRST APPEALED THE DENIAL BUT RECENTLY ANNOUNCED THEY WERE DROPPING THE APPEAL BECAUSE SWFTE HAS AGREED TO CHANGE ITS SOFTWARE PRODUCTION METHODS BUT DAVID GOODMAN PRESIDENT AND OWNER OF SWFTE SAYS SWFTE DIDN'T AGREE TO ANYTHING INSTEAD HE SAID SWFTE USED A FONT DESIGN PROGRAM TO SLIGHTLY SHRINK THE FONTS PRODUCED BY THE PLAINTIFFS AND THEN REANALYZE THEM AS A RESULT SWFTE'S FONT LIBRARIES NOW USE DIFFERENT POINTS TO DEFINE THE SHAPE OF THE LETTERS WITHOUT CHANGING THE SHAPE CREATED BY THE ORIGINAL PRODUCERS SEE RELATED LETTER LETTERS TO THE EDITOR ARTISAN'S SKILL NEEDED TO CREATE A TYPEFACE WSJ DEC 27 1993 9311190022 YY93 MM12 9312270039 931126 LETTERS TO THE EDITOR MEDICAL ALLIANCES' FEE SCHEDULE SIMPLIFIED YOU OBVIOUSLY MISUNDERSTAND THE REASON FOR THE PARTICULAR PROVISION OF THE ADMINISTRATION'S HEALTH PROPOSAL THAT WAS EXCERPTED FROM THE TIMES BOOKS VERSION OF THE PLAN MEDICAL REFORM SIMPLIFIED REVIEW & OUTLOOK OCT 18 THE PROPOSAL WOULD PRECLUDE PROVIDERS FROM CHARGING OR COLLECTING FROM PATIENTS FEES THAT ARE IN EXCESS OF THE FEE SCHEDULE ADOPTED BY AN ALLIANCE THIS PROHIBITION HAS NOTHING TO DO WITH CONSUMERS NOT BEING ALLOWED TO PAY MORE TO SOMEONE ELSE EVEN IF THEY THINK IT'S WORTH IT AS YOU SUGGEST THE PROVISION ON PAGE 68 OF THE TIMES BOOKS VERSION IS INCLUDED IN VIRTUALLY EVERY MANAGED CARE PLAN THE PURPOSE OF WHICH IS TO PROTECT THE PATIENT FROM HAVING TO ABSORB THE DISCOUNT OBTAINED FROM THE PROVIDER AS A CONDITION OF PARTICIPATING IN A PROVIDER NETWORK THE PRACTICE OF COLLECTING THE DISCOUNT AMOUNT FROM THE PATIENT IS CALLED BALANCE BILLING AND DEFEATS THE WHOLE PURPOSE OF MANAGED COMPETITION FOR EXAMPLE IF A PROVIDER'S USUAL AND CUSTOMARY FEE FOR A PARTICULAR PROCEDURE IS 75 AND THE PROVIDER RECEIVES 50 FOR THAT PROCEDURE PURSUANT TO THE FEE SCHEDULE THE PROVIDER MAY NOT BILL THE PATIENT FOR THE 25 SHORTFALL WITHOUT THIS PROVISION THE DISCOUNT WOULD BE EFFECTIVELY ELIMINATED AND RESULT IN NO NET COST SAVINGS IT IS SERIOUS OBFUSCATION TO SUGGEST THAT THIS SIMPLE PROVISION WILL LIMIT THE RIGHT OF THE PATIENT TO CHOOSE A PRIVATE PHYSICIAN COMMON SENSE TELLS US THAT THE ABILITY OF PROVIDERS TO BALANCE BILL WOULD DESTROY ANY COST EFFECTIVE HEALTH CARE PLAN SEE RELATED LETTER LETTERS TO THE EDITOR A WARNING TO DOCTORS ABOUT BALANCE BILLING WSJ DEC 27 1993 9311260050 YY93 MM12 9312270109 931013 TEXAS JOURNAL HAVE THEY TRIED WRITING A SEQUEL TO LA TRAVIATA' BY BRIDGET O'BRIAN HOUSTON PERFORMINGARTS ORGANIZATIONS ARE SINGING A FAMILIAR TUNE AND IT'S PAYING OFF AFTER SEVERAL YEARS OF DECLINING ATTENDANCE TICKET SALES ARE RISING HERE THANKS TO NEW MARKETING TACTICS AND A RETURN TO BETTERKNOWN SHOWS HOUSTON GRAND OPERA FOR INSTANCE IS LURING NEWCOMERS BY MAKING OPERA MORE FINANCIALLY AND ARTISTICALLY ACCESSIBLE AFTER CONDUCTING FOCUSGROUP INTERVIEWS AND SURVEYS THE ORGANIZATION NOW LETS OPERA LOVERS BUY A THREETICKET SUBSCRIPTION TO ANY THREE PERFORMANCES OR EVEN THREE DIFFERENT PERFORMANCES OF THE SAME SHOW RATHER THAN FORCING THEM TO BUY A SUBSCRIPTION TO ALL SEVEN SHOWS IN THIS YEAR'S SEASON THE OPERA ALSO SELLS A LIMITED NUMBER OF COUPONS AT 28 OFF THE REGULAR TICKET PRICE REDEEMABLE FOR CERTAIN SEATS TO ANY SHOW AT ANY TIME BEFORE THE CURTAIN GOES UP IF SEATS ARE AVAILABLE MOREOVER SEVERAL OF THE OPERA'S SEVEN OFFERINGS THIS YEAR ARE AMONG THE MOST BASIC IN OPERATIC REPERTORY MADAME BUTTERFLY LUCIA DI LAMMERMOOR LA TRAVIATA AND TURANDOT WE HAVE KEPT A COMMITMENT TO THE CUTTING EDGE BUT WE'RE DOING VERY POPULAR OPERAS AS WELL SAYS RODY KUCHAR THE OPERA'S MARKETING DIRECTOR THE RESULT MORE HOUSEHOLDS ATTENDING OPERA AND HIGHER SINGLETICKET SALES THEATRE UNDER THE STARS WHICH PRODUCES MUSICALS HERE IS WITHIN 50 SEASON TICKETS OF LAST YEAR'S 28000 TOTAL ALTHOUGH SINGLETICKET SALES ARE DOWN AFTER FINDING THAT ATTENDEES ARE MORE TITLESENSITIVE THAN PRICESENSITIVE WE'VE RETREATED FROM LESSADVANCED SHOWS TO SAFE ONES SAYS FRANK YOUNG THE GROUP'S EXECUTIVE DIRECTOR THIS YEAR THE GROUP IS OFFERING THEATRICAL STAPLES SUCH AS FIDDLER ON THE ROOF AND SOUTH PACIFIC THE ALLEY THEATRE HAS SOLD 14000 SEASON TICKETS THIS YEAR ABOUT 1000 MORE THAN LAST YEAR AT THIS TIME THE THEATER IS STRESSING THE EASE OF HAVING A SUBSCRIPTION FOR THE FIRST TIME SEASON TICKET HOLDERS CAN NOW SWITCH THEIR TICKETS OR PERFORMANCES BY PHONE 9312270057 931013 TEXAS JOURNAL NEXT FINANCIERS GATHER IN DALLAS TO ROPE CALVES BY KYLE POPE NEVER HAS THERE BEEN A BETTER FORUM FOR DALLAS TO PITCH ITSELF AS THE URBANE HIGHTECH MECCA IT SO BADLY WANTS TO BE THE SETTING LAST WEEK'S NETWORLD COMPUTER TRADE SHOW AT THE DALLAS CONVENTION CENTER HOST TO 40000 TECHNOLOGY JOCKEYS IN TOWN TO LEARN ABOUT COMPUTER NETWORKING THE EVENT IS THE LARGEST HIGHTECHNOLOGY SHOW OF THE YEAR FOR DALLAS AND IT DRAWS A FLOCK OF TRADE JOURNALISTS WALL STREET ANALYSTS AND INDUSTRY HEAVYWEIGHTS ONE OF THE TOP DRAWS WAS DALLASBASED NETWORTH INC WHICH BUILT ITS BOOTH AROUND A LESSTHANURBANE MOTIF NETWORTH ATTRACTED THRONGS BY DRESSING UP CONVENTIONEERS IN A COWBOY HAT AND BANDANNA AND SNAPPING THEIR PICTURE ATOP A STUFFED STEER NAMED STIFFY SURROUNDED BY CACTUS CUTOUTS A SPOKESMAN FOR THE COMPANY ESTIMATES 3600 PEOPLE STOPPED BY THE EXHIBIT WHICH PLAYED UP A TECHNOLOGY SHOOTOUT BETWEEN NETWORTH AND NETWORKING COMPETITOR SYNOPTICS COMMUNICATIONS EVERYTHING CLICKED WITH THIS SHOW THE SPOKESMAN SAYS SO MUCH FOR THE CITY OF THE FUTURE 9312270056 931013 TEXAS JOURNAL AN ENTREPRENEUR CEDES CONTROL PART III BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS RICHARD W SNYDER IS TALKING ABOUT GIVING UP CONTROL OF HIS COMPANY AGAIN THE FIRST TIME WAS IN FEBRUARY 1992 WHEN MR SNYDER CHAIRMAN AND OWNER OF DALLASBASED SNYDERGENERAL CORP SAID HE WAS TAKING THE COMPANY PUBLIC FIVE MONTHS LATER HE ABORTED THE PLAN JUST TWO DAYS BEFORE THE FILING DATE MR SNYDER BLAMED THE WEAK EUROPEAN ECONOMY WHICH WOULD HAVE MEANT A LOWERTHANEXPECTED STOCK PRICE THE SECOND ANNOUNCEMENT CAME THIS PAST JANUARY BUT THAT PLAN TOO WAS ABANDONED THIS TIME TWO WEEKS BEFORE THE APRIL FILING DATE AGAIN THE EUROPEAN ECONOMY TOOK THE HEAT MAYBE THREE'S THE CHARM LAST MONTH SNYDERGENERAL A MAKER OF COMMERCIAL AIRCONDITIONING AND AIRFILTRATION EQUIPMENT ONCE AGAIN SAID IT WAS CONSIDERING A PUBLIC OFFERING OR MORE LIKELY SELLING THE COMPANY OUTRIGHT IF THAT IS MR SNYDER CAN BRING HIMSELF TO DO IT HE NOW CONCEDES THAT PERSONAL DOUBTS PLAYED A ROLE IN THE FIRST TWO CANCELLATIONS AND THEY CONTINUE TO DO SO IT'S AN EMOTIONAL THING AFTER 11 YEARS OF DOING IT DICK SNYDER'S WAY SAYS THE 55YEAROLD EXECUTIVE WHO FOUNDED THE COMPANY IN 1982 WHEN HE DID A 27 MILLION LEVERAGED BUYOUT OF SINGER CO'S AIRCONDITIONING DIVISION BUT MR SYNDER MAY NOT HAVE MUCH CHOICE SINCE THE COMPANY'S EARNINGS PEAKED IN 1991 SNYDERGENERAL HAS BEEN STRUGGLING IT IS CARRYING 300 MILLION OF DEBT PROFITS ARE DOWN BY MORE THAN 50 IN EUROPE WHICH ACCOUNTS FOR NEARLY 30 OF THE COMPANY'S 700 MILLION IN ANNUAL REVENUE AND OVERALL EARNINGS HAVE DROPPED BY ABOUT 8 SINCE 1991 OFFICIALS SAY ALTHOUGH THEY WON'T GIVE DOLLAR FIGURES THE COMPANY IS CONVINCED THAT IT IS POISED TO TAKE ADVANTAGE OF NEW ENVIRONMENTAL REGULATIONS AND INTERNATIONAL AGREEMENTS THAT WILL FORCE COMPANIES WORLDWIDE TO CLEAN UP THE AIR IN THEIR BUILDINGS AND TO CONVERT AIR CONDITIONERS THAT USE OZONEDEPLETING REFRIGERANTS POISED BUT CASHPOOR THE OPPORTUNITIES ARE MINDBOGGLING THE CHAINSMOKING MR SNYDER SAYS BUT WE DON'T HAVE THE CAPITAL STRENGTH TO TAKE ADVANTAGE OF IT AND SO THE CONFLICT IS FRAMED FOR MR SNYDER SIT STILL AND WATCH THE COMPANY HE FOUNDED STRUGGLE AND POSSIBLY WITHER WHILE HIS COMPETITORS DO THE DEALS OR LET THE COMPANY GROW BY GIVING UP PART OR ALL OF IT THIS IS NOT DISSIMILAR FROM MANY SITUATIONS WHERE YOU HAVE A VERY SUCCESSFUL ENTREPRENEUR WHO'S REALLY CREATED SOMETHING PERHAPS BIGGER THAN HE EVER IMAGINED SAYS BOB LEVITT A MANAGING DIRECTOR OF CS FIRST BOSTON IN LOS ANGELES MR SYNDER'S INVESTMENT BANKER I THINK IT HAS BEEN A DIFFICULT DECISION FOR DICK TO REACH HE HAS CROSSED A THRESHOLD AND IS AT THE POINT WHERE HE IS GOING TO TAKE AFFIRMATIVE STEPS TO ASSURE THE COMPANY'S LONGTERM COMPETITIVENESS IF THAT MEANS IT'S OWNED BY SOMEONE ELSE SO BE IT I KNOW HE'S PREPARED TO DO IT PERHAPS BUT MR LEVITT SEEMS A BIT MORE PREPARED THAN MR SNYDER IF I COULD SIT AND RUN DICK SNYDER'S FIEFDOM FOR THE REST OF MY LIFE THAT WOULD BE IDEAL SAYS MR SNYDER WHOSE NET WORTH HAS BEEN ESTIMATED BY TEXAS MONTHLY MAGAZINE AT 180 MILLION I DON'T KNOW HOW WELL I'D LIKE OUTSIDE SHAREHOLDERS I DON'T KNOW HOW I WOULD LIKE A PARTNER STILL HE ADDS I'M A GUY ORIENTED TOWARD GROWTH FOR THIS COMPANY TO GROW I'M GOING TO HAVE TO SHARE IT WITH SOMEBODY I RECOGNIZE THAT THIS TIME THOUGH A PUBLIC OFFERING SEEMS UNLIKELY INSTEAD MUCH OF THE FOCUS IS ON SELLING THE COMPANY CS FIRST BOSTON SAYS POTENTIAL BUYERS INCLUDE FORTUNE 100 COMPANIES AND LEVERAGED BUYOUT FIRMS OTHER POSSIBILITIES INCLUDE SELLING OFF PARTS OF THE COMPANY OR BRINGING IN A MINORITY EQUITY INVESTOR SNYDERGENERAL ALSO HAS WORKED OUT A LESSJARRING REFINANCING PLAN WHICH COULD INCLUDE A CASH INFUSION BY MR SNYDER WHO WOULD RETAIN CONTROL OF THE COMPANY BUT THE PLAN APPEARS TO BE A LAST RESORT JUST IN CASE NO BUYER CAN BE FOUND OR MR SNYDER GETS COLD FEET AGAIN MR SNYDER'S SON ROB BELIEVES THE LATTER WON'T HAPPEN THE YOUNGER MR SNYDER A FORMER MERGERS AND ACQUISITIONS SPECIALIST AT A NEW YORK LAW FIRM JOINED SNYDERGENERAL AS A VICE PRESIDENT OF CORPORATE DEVELOPMENT IN 1992 HIS FATHER SAYS IT WAS HIS SON WHO CONVINCED HIM THAT HE HAD TO GET AN OUTSIDE PARTNER OR BUYER MY FATHER LOOKED ME IN THE EYES AND SAID WE'RE DOING IT' SAYS THE YOUNGER MR SNYDER THAT'S THE FIRST TIME HE'S EVER DONE THAT MY FATHER'S JUST NOT HAVING ANY FUN RIGHT NOW HE LOVES DOING DEALS THE LOVE OF DEALS IN FACT MIGHT POINT THE WAY TOWARD MR SNYDER'S FUTURE MR SNYDER SAYS HE WOULD ENJOY SITTING ON A NICE CHUNK OF CASH TRYING TO EMULATE ON A SMALLER SCALE INVESTMENT FUNDS LIKE DALLASBASED HICKS MUSE & CO OR KOHLBERG KRAVIS ROBERTS & CO IN NEW YORK ALREADY HE HOLDS A 75 OWNERSHIP IN ENERGYLINE SYSTEMS INC A CALIFORNIABASED MANUFACTURER OF CONTROLS FOR HIGHTECH DEVICES AND PERHAPS HE SAYS THERE IS ANOTHER SNYDERGENERAL OUT THERE WAITING TO BE DISCOVERED I ENJOY THE HUNT HE SAYS SMILING AT THE THOUGHT IF I SOLD THE COMPANY AND HAD AN INVESTMENT FUND THAT WOULD BE A FULLTIME JOB BESIDES HE SAYS MAYBE IT'S TIME TO GET OUT ANYWAY EVEN IF THE COMPANY DIDN'T NEED HIM TO NOW THAT I'VE HIT THE DOUBLE NICKEL I REALIZE 99 OF MY NET WORTH IS TIED UP IN ILLIQUID STOCK MR SNYDER SAYS I'M PREPARED EMOTIONALLY TO GO ANYWAY IT'S JUST A QUESTION OF SORTING THROUGH THE BEST FINANCIAL ALTERNATIVE 9312270163 930908 TEXAS JOURNAL EXXON CONSIDERS FRIENDSWOOD SALE TO RAINWATER BY TARA PARKERPOPE HOUSTON EXXON CORP IS MULLING A PLAN TO SELL ITS HUGE FRIENDSWOOD DEVELOPMENT CO REALESTATE HOLDINGS TO THE PUBLIC ACCORDING TO PEOPLE CLOSE TO THE DELIBERATIONS THESE PEOPLE SAY EXXON WHOSE FRIENDSWOOD UNIT IS THE LARGEST LANDHOLDER IN HARRIS COUNTY HERE IS IN PRELIMINARY TALKS TO SELL ALL OR PART OF ITS HOLDINGS TO A REALESTATE INVESTMENT TRUST BEING ASSEMBLED BY FORT WORTH INVESTOR RICHARD RAINWATER THE REIT WHICH WOULD CONTAIN OTHER REALESTATE HOLDINGS IN ADDITION TO THOSE OF EXXON WOULD IN TURN SELL SHARES IN ITSELF IN A PUBLIC STOCK OFFERING UNDER THE PLAN BEING CONSIDERED EXXON WOULD RECEIVE SHARES IN THE REIT IN EXCHANGE FOR THE REAL ESTATE LEAVING IT WITH AN INDIRECT OWNERSHIP IN THE PROPERTIES FRIENDSWOOD ALSO WOULD CONTINUE TO MANAGE ITS FORMER PROPERTIES AN EXXON SPOKESMAN REFERRED CALLS TO FRIENDSWOOD PRESIDENT JOHN WALSH WHO SAYS EXXON HASN'T MADE ANY DECISION TO SELL ITS FRIENDSWOOD PROPERTY OBVIOUSLY IF SOMEONE INCLUDING MR RAINWATER APPROACHED EXXON AND MADE A SERIOUS PROPOSAL AT A VERY ATTRACTIVE PRICE THEY'D CERTAINLY LOOK AT THAT HE SAYS THERE'S NO ACTIVE EFFORT RIGHT NOW TO SELL FRIENDSWOOD MR RAINWATER DECLINED TO COMMENT MERRILL LYNCH & CO WHICH IS SAID TO BE ADVISING MR RAINWATER ALSO DECLINED TO COMMENT FRIENDSWOOD WHICH HAS BEEN DEVELOPING LAND IN HARRIS COUNTY FOR THREE DECADES OWNS AND MANAGES AMONG OTHER THINGS KINGWOOD A 13000ACRE RESIDENTIAL COMMUNITY NORTH OF HOUSTON AND MUCH OF THE GREENSPOINT OFFICE DISTRICT FRIENDSWOOD HAS ACKNOWLEGED IT IS TRYING TO SELL TWO OFFICE BUILDINGS IN GREENSPOINT PLAZA OR AT LEAST TO BRING OUTSIDE INVESTORS IN AS PARTNERS TWO OTHER BUILDINGS IN GREENSPOINT PLAZA OWNED BY THE EXXON PENSION FUND ARE ALSO BEING MARKETED 9312270100 930929 TEXAS JOURNAL ECONOMIC FOCUS NAFTA'S EFFECT ON TEXAS IT DEPENDS WHOM YOU ASK BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL CONFUSED ABOUT HOW THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT WILL AFFECT THE TEXAS ECONOMY DON'T WORRY SO ARE TEXAS ECONOMISTS DESPITE A FLURRY OF AUTHORITATIVESOUNDING STUDIES PREDICTING BIG GAINS IN EXPORTS JOBS AND PRODUCTION IN TEXAS IF CONGRESS RATIFIES NAFTA THE EXPERTS CONCEDE THEY'RE ESSENTIALLY FLYING BLIND THAT'S PARTLY BECAUSE THERE IS NO PRECEDENT FOR THE PROPOSAL TO CREATE ONE GIANT FREETRADE ZONE OUT OF THE US MEXICO AND CANADA BUT THE UNCERTAINTY IS PARTICULARLY PRONOUNCED IN TEXAS THANKS TO ITS LONG SHARED BORDER WITH MEXICO AND THE FACT THAT THE TWO ECONOMIES ARE ALREADY INTERTWINED ADD TO THAT THE GUESSWORK THAT GOES INTO CREATING ANY ECONOMETRIC MODEL ESPECIALLY AT THE STATE LEVEL AND IT'S EASY TO SEE WHY EVEN THE EXPERTS AREN'T TOO SURE OF THEMSELVES I THINK THE FACT IS NOBODY KNOWS WHAT THE HELL IS GOING TO HAPPEN SAYS KELLY FERO A SPOKESMAN FOR THE TEXAS COMPTROLLER OF PUBLIC ACCOUNTS FIRST THE CONSENSUS MOST ACADEMICS HERE AGREE THAT NAFTA'S PASSAGE WOULD BENEFIT TEXAS PROBABLY MORE THAN ANY OTHER STATE THAT'S BECAUSE TEXAS' EXPORTS TO MEXICO ARE GREATER THAN ANY OTHER STATE'S ABOUT 45 OF THE USTOMEXICO TOTAL THAT SAID ACADEMICS ALSO TEND TO AGREE THAT NAFTA ALONE WON'T HAVE MUCH IMPACT HERE THAT'S BECAUSE MEXICO ALREADY HAS HALVED ITS AVERAGE TARIFFS ON US GOODS SINCE 1986 TO ABOUT 10 HELPING FUEL A BOOM IN TRADE BUT THAT'S ONLY PART OF THE STORY EXPERTS ALSO WORRY THAT IF NAFTA DOESN'T PASS IT COULD DAMAGE THE POLITICAL CREDIBILITY OF MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI INCREASING THE CHANCE THAT FUTURE ADMINISTRATIONS WOULD RETURN TO A MORE INWARDLOOKING CENTRALIZED ECONOMY THAT IN TURN WOULD CHOKE THE GROWTH IN TRADE AND INVESTMENT TIES BETWEEN MEXICO AND TEXAS THUS ANALYSTS SAY A MORE USEFUL WAY TO LOOK AT NAFTA IS TO CALCULATE WHAT HAPPENS IF CURRENT TRADE AND POLITICAL TRENDS CONTINUE AND NAFTA PASSES AND THAT'S WHERE THE FIGHT BEGINS ACCORDING TO A STUDY BY UNIVERSITY OF TEXAS ECONOMISTS CHANDLER STOLP AND SIDNEY WEINTRAUB AND TEXAS PERSPECTIVES INC ECONOMIST JON HOCKENYOS NAFTA PASSAGE AND A CONTINUATION OF CURRENT MEXICAN ECONOMIC TRENDS WOULD LEAD TO THE CREATION OF 182000 NEW JOBS IN THE STATE BY 2003 THE STATE COMPTROLLER'S OFFICE PREDICTS 262000 NEW JOBS BETWEEN 1990 AND 2000 MEANWHILE M RAY PERRYMAN PRESIDENT OF PERRYMAN CONSULTANTS INC IN WACO FORECASTS THE CREATION OF 887935 PERMANENT TEXAS JOBS FROM 1993 TO 2000 THAT'S SHEER NONSENSE EXPLODES BERNARD WEINSTEIN DIRECTOR OF THE UNIVERSITY OF NORTH TEXAS CENTER FOR ECONOMIC DEVELOPMENT AND RESEARCH WHO SAYS HE BELIEVES THE UNIVERSITY OF TEXAS STUDY IS THE MOST REALISTIC PERHAPS BUT EVEN DR STOLP OF THE UNIVERSITY OF TEXAS CAUTIONS THAT HIS FIGURES AREN'T TO BE TAKEN TOO SERIOUSLY I WOULDN'T PUT MONEY ON THESE NUMBERS PER SE OR EVEN THESE NUMBERS PLUS OR MINUS 10 OR 50 HE SAYS IN A SENSE I THINK WE'RE TAKING A MICROSCOPE TO LOOK AT A FOOTBALL FIELD HERE SO IT'S KIND OF FUZZY AT THE MARGIN SOME REASONS FOR THE FUZZINESS IN DR STOLP'S MIND INCLUDE THE FOLLOWING IT'S ALL BUT IMPOSSIBLE TO FIGURE OUT HOW THE SERVICE AND DISTRIBUTION SECTORS WHICH REPRESENT ABOUT 75 OF TEXAS' ECONOMIC ACTIVITY WOULD REACT TO NAFTA THE EFFECT ON THE BORDER REGION ALSO REMAINS A MYSTERY SINCE FREER TRADE MIGHT LEAD TO A DECLINE IN MEXICANS CROSSING OVER TO BUY US GOODS AND NOBODY HAS ANY REAL FIX ON WHAT NAFTA MIGHT DO TO MEXICAN EXPORTS TO TEXAS THUS THE UNIVERSITY OF TEXAS STUDY FOCUSES JUST ON THE GOODSPRODUCING SECTORS IN TEXAS INCLUDING AGRICULTURE MINING AND MANUFACTURING BY EXTRAPOLATING FROM RECENT EXPORT TRENDS THE REPORT CONCLUDES THAT THE TEXAS SECTORS WITH THE MOST TO GAIN FROM LIBERALIZED TRADE WITH MEXICO INCLUDE AIRCRAFT AND PARTS MANUFACTURING ELECTRICAL COMPONENTS COMMUNICATIONS EQUIPMENT AND AUTO PARTS BREAKING THOSE SECTORS REGIONALLY THE STUDY PREDICTS THAT THE GREATER DALLASFORT WORTH AREA WILL BE THE BIGGEST BENEFICIARY WITH 414 OF THE NEW JOBS GREATER HOUSTON FOLLOWS WITH 213 WHILE SOUTH TEXAS AND CENTRAL TEXAS WOULD RECEIVE 77 AND 68 OF THE GAINS RESPECTIVELY BOTH THE PERRYMAN REPORT AND THE COMPTROLLER'S STUDY DIFFER FROM THE UNIVERSITY OF TEXAS EFFORT IN TWO BASIC WAYS THEY ATTEMPT TO ACCOUNT FOR SERVICES GROWTH FOR INSTANCE LAW FIRMS THAT HIRE NEW ASSOCIATES TO WORK ON TRADERELATED DEALS AND THEY USE A MULTIPLIER TO TRY TO GET AT JOBS THAT ARE CREATED BY THE RIPPLE EFFECT AS TRADERELATED WORKERS SPEND THEIR WAGES ON GROCERIES GASOLINE AND THE LIKE THAT BEING THE CASE WHY DO THE TWO STUDIES COME TO SUCH DIVERENT CONCLUSIONS FOR ONE THING DR PERRYMAN EXPECTS MUCH FASTER EXPT A BAD ASSUMPTION SINCE TRADE HAS ACCELERATED SINCE THE COMPTROLLER'S 1991 REPORT BUT HE ALSO OPTIMISTICALLY FIGURES EACH 1 BILLION IN NEW EXPORTS YIELDS 30938 PERMANENT TEXAS JOBS VERSUS 21129 UNDER THE COMPTROLLER'S CALCULATIONS A HUNTING WE WILL GO SOME BUYERS FOR TEXAS HUNTING LAND ARE FINALLY STARTING TO EMERGE FROM THE WOODS BUT IT'S STILL A BUYER'S MARKET BEFORE OIL AND NATURALGAS PRICES CRASHED IN THE MID1980S TEXAS HUNTING LAND TYPICALLY SOLD FOR 800 TO 1500 AN ACRE WITH THE HIGHER END RESERVED FOR PROPERTY INHABITED BY DEER BUT IN RECENT YEARS SUCH LAND HAS SOLD FOR 300 TO 900 AN ACRE AND THERE WERE NO BUYERS FOR A LONG TIME UNTIL THE LAST YEAR SAYS JERRY WATERS PRESIDENT OF HAWKEYE HUNTING CLUB A 2500ACRE RESORT IN CENTER TEXAS MR WATERS WHO ALSO OWNS CONSIDERABLE OTHER TEXAS HUNTING ACREAGE SAYS HE HAS SOLD THREE TRACTS IN THE PAST YEAR THOSE PARCELS HAD BEEN ON THE MARKET FOR MORE THAN THREE YEARS MORE PEOPLE ARE HUNTING AGAIN MR WATERS SAYS AND MORE OF THEM HAVE MONEY FOR THEIR OWN LAND TO DO IT ON MEXICAN GOVERNMENT CONTINUES ITS CURRENT POLICIES OF ECONOMIC LIBERALIZATION THE MULTIPLIER EFFECT ON OTHER SECTORS SEE RELATED LETTER LETTER TO THE EDITOR WSJ OCT 6 1993 9310070122 YY93 MM12 9312270080 930915 TEXAS JOURNAL THEIR MANTRA WE HATE BELL WE HATE BELL WE BY MICHAEL TOTTY THERE'S NOTHING LIKE HAVING A COMMON ENEMY DURING THE LAST LEGISLATIVE SESSION AN UNLIKELY COALITION OF INDUSTRY AND CONSUMER GROUPS FOUGHT SOUTHWESTERN BELL TELEPHONE CO TO A STANDSTILL OVER DEREGULATION NOW THE COALITION WANTS TO MAKE ITS MARRIAGE PERMANENT CALLING ITSELF THE COMMUNICATIONS COALITION OF TEXAS THE GROUP EXPECTED TO ANNOUNCE ITS FORMATION THIS WEEK UNITES STRANGE BEDFELLOWS FOR INSTANCE CABLETV INTERESTS AND CONSUMER GROUPS AND LONGDISTANCE GIANT MCI COMMUNICATIONS CORP AND SMALL INDEPENDENT LONGDISTANCE CARRIERS WHAT UNITES SUCH DISPARATE PARTIES IS OPPOSITION TO SOUTHWESTERN BELL'S PUSH FOR LESS STATE REGULATION THE COMPANIES FEAR THE TELECOMMUNICATIONS GIANT IF UNSHACKLED WOULD WREAK HAVOC IN THEIR INDUSTRIES CONSUMER GROUPS WANT TO LIMIT LOCAL PHONE COSTS NOTABLY ABSENT ARE THE STATE'S NEWSPAPER PUBLISHERS WHO LED THE CHARGE AGAINST DEREGULATION DURING THE LEGISLATIVE SESSION WHICH ENDED IN MAY THE PUBLISHERS ARE MAINLY INTERESTED IN KEEPING THE PHONE COMPANIES OUT OF ELECTRONIC PUBLISHING WE THOUGHT IT WOULD BE BETTER IF WE FOCUSED OUR MONEY OUR EFFORTS AND OUR ATTENTION ON OUR GOALS SAYS ROGER KINTZEL PUBLISHER OF THE AUSTIN AMERICANSTATESMAN AND VICE PRESIDENT OF THE TEXAS DAILY NEWSPAPER ASSOCIATION EVERYONE KNOWS THAT IN THE 1995 SESSION THERE ARE GOING TO BE SIGNIFICANT CHANGES IN THE COMMUNICATIONS REGULATORY ENVIRONMENT SAYS BILL MAGNESS A FORMER OFFICE OF PUBLIC UTILITY COUNSEL LAWYER HIRED TO BE THE GROUP'S EXECUTIVE DIRECTOR WE WANT TO BE INVOLVED IN THAT 9312270073 930908 TEXAS JOURNAL HEARD IN TEXAS INVESTORS IN TEXAS FIND TREASURES AT HOME AS LOCAL STOCKS GLITTER BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS INVESTORS IN TEXAS STOCKS HAVE HIT A GUSHER THIS YEAR SINCE THE BEGINNING OF 1993 THE AVERAGE MARKET VALUE OF 287 PUBLICLY TRADED TEXAS COMPANIES BEING TRACKED BY THE WALL STREET JOURNAL HAS SPURTED 19 IF TEXAS WERE A COUNTRY HEY WHY NOT ITS STOCK MARKET WOULD HAVE RANKED 11TH IN THE WORLD FOR GROWTH THIS YEAR IN US DOLLARS TRAILING SPAIN BUT AHEAD OF FRANCE TO PUT IT IN PERSPECTIVE ON THE HOME FRONT THE STANDARD & POOR'S 500STOCK INDEX HAS RISEN JUST 59 SO FAR THIS YEAR LITTLE WONDER THAT PEOPLE LIKE FREDERICK ROWE A DALLAS MONEY MANAGER AND SOMETIMES MARKET SCRIBE PAY EXTRA CLOSE ATTENTION TO THE HOMEGROWN STOCKS TEXAS HE NOTES IS DOING AS WELL AS ANYBODY IN THE WORLD RIGHT NOW STARTING TODAY THE WALL STREET JOURNAL TOO WILL BE PAYING SPECIAL HEED TO TEXAS STOCKS WITH THE HELP OF WILSHIRE ASSOCIATES A SANTA MONICA CALIF FINANCIAL CONSULTING FIRM THIS NEWSPAPER EACH WEDNESDAY WILL PUBLISH THE TEXAS STOCK INDEX A COMPILATION OF PUBLICLY TRADED TEXASBASED ENTERPRISES WITH MARKET VALUES EXCEEDING 50 MILLION CORRALING LEVIATHANS AND LILLIPUTIANS ALIKE WE'LL PRESENT THE BEST AND THE WORST INVESTMENTS THE STATE HAS TO OFFER ALONG WITH OTHER CRUCIAL INFORMATION SUCH AS INSIDER BUYING AND SELLING AND REVENUE GROWTH AND EACH WEEK IN THIS COLUMN WE'LL PEER INTO PARTICULARLY NOTEWORTHY COMPANIES AND INDUSTRIES AROUND THE STATE WE MUST ADMIT WE'VE STRUCTURED OUR INDEX OF TEXAS COMPANIES TO LIMIT TO 5 THE INFLUENCE ANY ONE CORPORATION EXERTS OTHERWISE EXXON WOULD ACCOUNT FOR 24 OF THE INDEX SOUTHWESTERN BELL 7 THE 5 CAP WILL PROVIDE A TRUER PICTURE OF THE MARKET ACTIVITY OF TEXAS COMPANIES OF COURSE TO SOME FOCUSING ON A SINGLE STATE MAY SEEM PAROCHIAL NOT TO MENTION RISKY BUT THAT'S A MISGUIDED VIEW SAY INVESTMENT SAVANTS WHO TAIL TEXAS EQUITIES NOT ONLY ARE TEXAS COMPANIES MUCH MORE DIVERSIFIED AND PLUGGED INTO MAINSTREAM AMERICA THAN THEY USED TO BE BUT IT CAN BE MUCH EASIER FOR TEXANS TO GAUGE THEIR PROSPECTS THAN OUTOFSTATERS BEING A LOCAL INVESTOR MEANS YOU HAVE THE OPPORTUNITY TO DEVELOP AN EDGE TO GET TO KNOW THE MANAGEMENT AND THE COMPANIES BETTER THAN THE REST OF THE COUNTRY SAYS HOUSTON HALL A PARTNER AT GHS MANAGEMENT IN DALLAS A MONEY MANAGEMENT FIRM WHO CONCENTRATES ON THE STOCK ACTIVITY OF TEXASBASED BUSINESSES HIS POTENTIAL UNIVERSE IS CONSIDERABLE PONDER THESE NUMBERS OF THE 2252 COMPANIES TRADED ON THE NEW YORK STOCK EXCHANGE NEARLY 200 HAVE TEXAS ROOTS 85 OF THE MORE THAN 860 AMERICAN STOCK EXCHANGE COMPANIES RESIDE WITHIN THESE BORDERS AND OF THE 4100 NASDAQ COMPANIES 264 LIST TEXAS AS THEIR ADDRESS THIS PROLIFERATION OF COMPANIES IS SPREAD ACROSS AN ABUNDANCE OF INDUSTRIES AND SECTORS FINANCIAL AND INFORMATION SERVICES MEDICAL AND HEALTH CARE COMMERCIAL AVIATION RESTAURANTS TRANSPORTATION AND ENERGY IN SHORT WHY GO OUT OF YOUR OWN BACKYARD TO FIND A NUGGET WONDERS DOW CROCKER A BROKER AT PRINCIPAL/EPPLER GUERIN & TURNER IN DALLAS SO WHAT MIGHT A WORTHY NUGGET BE QUITE A FEW HAVE ALREADY POPPED TO THE SURFACE TAKE HOUSTON'S CHILES OFFSHORE WHICH AT 6125 IS UP 345 IN EIGHT MONTHS LEADING OUR INDEX LIKEWISE INVESTORS IN FIRST USA AN ISSUER AND PROCESSOR OF CREDIT CARDS MIGHT BE TEMPTED TO CHARGE UP A HUGE VISA BILL TO CELEBRATE THAT COMPANY'S 164 RETURN SINCE JAN 1 OTHERS TAKE MORE DIGGING ONE THAT BEARS A CLOSER LOOK IS BUSINESS RECORDS CORP A DALLAS INFORMATIONSERVICES CONCERN UP A RESPECTABLE 29 THIS YEAR ITS LINE OF BUSINESS THE HUMDRUM ENDEAVOR OF MANAGING LAND RECORDS AND SUCH FOR COUNTY GOVERNMENTS BUSINESS RECORDS IS THIS SECTOR'S MAJOR PLAYER CONTROLLING ABOUT 35 OF ALL COUNTIES IN THE US IT TOO IS THE LARGEST PROVIDER OF ELECTION SYSTEMS AND SERVICES COMMANDING ROUGHLY 60 OF THE POLLING BOOTH AND VOTE TABULATION MARKET AND JUST RECENTLY THE COMPANY PURCHASED CMSI A PORTLAND ORE COMPANY SUPPLYING DATA PROCESSING AND MANAGEMENT TO CITY GOVERNMENTS HOSPITALS AND OTHERS IN THE HEALTHCARE FIELD BUSINESS RECORDS IS DEBTFREE AND WITH THE ACQUISITION IT BECOMES A GROWTH PLAY CONTENDS MR CROCKER WHO BEGAN BUYING THE STOCK WHEN THE PRICE WAS 15 TODAY THE STOCK FETCHES ABOUT 2650 BUT MIGHT YET STILL PROVE A BARGAIN OR HOW ABOUT INTERTRANS AN INTERNATIONAL FREIGHT FORWARDER IN IRVING THAT STANDS TO REAP REWARDS IN A WORLD OF UNBORDERED NORTH AMERICAN TRADE MORE SIGNIFICANT TO THE PRESENT INTERTRANS RECENTLY SIGNED A TWOYEAR AGREEMENT WITH CHEVRON TO EXPORT TO KAZAKHSTAN ALL PRODUCTS THE PETROLEUM GIANT WILL NEED IN DEVELOPING OIL FIELDS IN THE FORMER SOVIET REPUBLIC INTERTRANS STOCK ADJUSTED FOR A 2FOR1 SPLIT THIS SUMMER TRADES AT 12 OR ABOUT 171 TIMES EXPECTED EARNINGS SALES HAVE GROWN ABOUT 25 A YEAR FOR THE PAST DECADE WHILE EARNINGS HAVE GROWN 10 TO 15 AND THE COMPANY HAS NO DEBT CONSIDER TOO TINY CRAFTMADE INTERNATIONAL CHANCES ARE YOU'VE NEVER HEARD OF THIS GRAND PRAIRIE ENTERPRISE BUT IF YOU'VE EVER BOUGHT A LAMP AT BOMBAY CO OR IF THE CEILING FANS IN YOUR HOME CAME FROM A LIGHTING SHOWROOM THEN YOU'RE LIKELY A CRAFTMADE CUSTOMER AS THE HOUSING MARKET STRENGTHENED IN RECENT YEARS THIS COMPANY WITH A MARKET CAP OF LESS THAN 30 MILLION HAS GROWN LIKE GANGBUSTERS SAYS SAM WILSON PRESIDENT OF STONEWALL SECURITIES A BOUTIQUE INVESTMENT HOUSE IN DALLAS WHO HAS PURCHASED ABOUT 400000 SHARES IN THE PAST MONTH OF COURSE INVESTING IN TEXAS FOR TEXAS SAKE DOESN'T GUARANTEE PROFIT JUST LOOK AT THE LOSERS 50OFF STORES HAS TAKEN ITS NAME TO HEART ITS STOCK IS OFF MORE THAN 50 AND THE JOKE ABOUT DELL COMPUTER WHOSE STOCK HAS SLUMPED 62 IS THAT FOUNDER MICHAEL DELL OUGHT TO GO BACK TO RUNNING THE COMPANY FROM HIS GARAGE ONLY ON WALL STREET CAN A COMPANY LOSE 11 MILLION IN A QUARTER AND BE REWARDED FOR IT BUT THAT'S THE CASE WITH SPI HOLDING THE RICHARDSON ENTERPRISE THAT PROVIDES PAYPERVIEW CLOSEDCIRCUIT MOVIE SYSTEMS AND OTHER SATELLITEBASED TELEVISION ENTERTAINMENT TO HOTELS LAST WEEK SPI LED THE LIST OF TEXAS COMPANIES WITH THE GREATEST PRICE APPRECIATION JUMPING NEARLY 31 TO 14375 A SHARE BY FRIDAY'S CLOSE THE PREVIOUS WEEK SPI SHARES GAINED NEARLY 24 THE ONLY RECENT NEWS ON SEPT 3 THE COMPANY REPORTED SIGNING A REVOLVING 50 MILLION CREDIT LINE WITH WELLS FARGO BANK AND ON AUG 16 THE COMPANY REPORTED A LOSS OF 11 MILLION FOR THE SECOND QUARTER ENDED JUNE 30 INCLUDING A 49 MILLION CHARGE FOR THE ANTICIPATED COSTS ASSOCIATED WITH A TECHNOLOGY CHANGE OF COURSE THE RECENT RESULTS ARE FAR BETTER THAN 1992'S SECOND QUARTER THEN SPI HAD A LOSS OF 2324 MILLION INCLUDING A 2185 MILLION CHARGE TO WRITE OFF GOODWILL TAKEN AS PART OF A CONTINUING REORGANIZATION EFFORT A SPOKESWOMAN COULDN'T EXPLAIN THE WEEK'S GAIN BUT NOTED THAT THE COMPANY SIGNED AN AGREEMENT THIS SUMMER WITH GENERAL MOTORS' ELECTRONIC DATA SYSTEMS THAT SPI CLAIMS WILL RADICALLY CHANGE THE DISTRIBUTION OF MOVIES INSTEAD OF COPYING 45000 MOVIES EACH WEEK AND HANDDELIVERING THEM TO HOTELS SPI NOW WILL BEAM MOVIES DIGITALLY TO A SATELLITE THEN BACK DOWN TO CLIENT HOTELS TEXASBASED STOCKS THAT HAVE ACHIEVED THE BIGGEST PRICE GAINS YEARTODATE PRICE CHANGE ONLY DIVIDENDS NOT INCLUDED TEXASBASED STOCKS THAT HAVE ACHIEVED THE BIGGEST PRICE DECLINES YEARTODATE PRICE CHANGE ONLY DIVIDENDS NOT INCLUDED NOTE ALL TABLES INCLUDE STOCKS WITH MARKET VALUES OF 50 MILLION OR MORE AT THE END OF ANY MONTH STOCKS PRICED AT LESS THAN 2 ARE EXCLUDED 9312270068 930908 TEXAS JOURNAL ECONOMIC FOCUS IS THE RECOVERY STALLING FIGURES HINT OF TROUBLE BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL JUST WHEN IT SEEMED SAFE TO USE THE WORD BOOM AGAIN THE TEXAS ECONOMY MAY BE HEADING FOR TROUBLE SURE WE'VE ALL HEARD ABOUT HOW TEXAS EMERGED FROM THE OIL PATCH RECESSION TO SMOKE THE US IN JOB CREATION DURING THE PAST THREE YEARS AND HOW TEXAS HAS BECOME ONE OF THE HOTTEST NEW HOUSING MARKETS IN THE COUNTRY AND ABOUT THE SURGE IN TEXAS STOCK PRICES BUT CONSIDER THIS IN THE FIRST SIX MONTHS OF 1993 3856 COMPANIES FAILED IN TEXAS ACCORDING TO DUN & BRADSTREET CORP THAT'S A 17 INCREASE OVER THE SAME PERIOD LAST YEAR AND THE HIGHEST NUMBER FOR ANY STATE EXCEPT RECESSIONWRACKED CALIFORNIA AFTER RACING AHEAD 81 IN 1992 TEXAS RETAILSALES GROWTH SLOWED TO AN ANNUAL RATE OF JUST 53 IN THE FIRST SIX MONTHS TRAILING EVEN THE ANEMIC US GAIN OF 6 IN ALL CANDOR THE LAST SEVERAL MONTHS OF TEXAS EMPLOYMENT DATA HAVE GIVEN ME SOME CONCERN SAYS NIC SANTANGELO WHO JUST RETIRED AS CHIEF OF ECONOMIC ANALYSIS FOR THE SOUTHWEST OFFICE OF THE BUREAU OF LABOR STATISTICS WHAT WE SEE HERE IS A VERY WEAK RECOVERY GETTING WEAKER THAT ISN'T TO SAY THAT TEXAS IS MOVING TOWARD A RECESSION OR THAT ALL PARTS OF THE STATE ARE IN THE DOLDRUMS THE STATE'S ECONOMY IS STILL EXPANDING ACCORDING TO THE LATEST AVAILABLE STATISTICS AND WITHIN THE STATE THERE ARE SOME POCKETS OF FRENZIED ACTIVITY THAT COULD ONLY BE DESCRIBED AS BOOMS MOREOVER AS LONG AS THE NATIONAL ECONOMY CONTINUES TO GROW HOWEVER SLOWLY TEXAS HAVING CLEARED OUT ITS MOST VULNERABLE ELEMENTS IN THE FINANCIAL AND OIL CRUNCHES OF THE 1980S IS LIKELY TO AT LEAST KEEP PACE STILL TOTE UP ALL THE NUMBERS AND TEXAS LOOKS MORE LIKE A CAR THAT'S IN THE SLOW LANE OF THE FREEWAY THAN ONE THAT'S PULLING OUT TO PASS IT MIGHT NOT BE TIME TO CALL FOR A TOW TRUCK BUT A NUMBER OF NEGATIVE TRENDS ARE EMERGING THAT BEAR CLOSE SCRUTINY IN THE WEEKS AHEAD TEXAS JOURNAL'S WEEKLY INDEX OF LEADING INDICATORS IS A GOOD PLACE TO START THE INDEX WHICH WILL APPEAR AT THE TOP OF THIS COLUMN EVERY WEDNESDAY WAS DEVELOPED FOR TEXAS JOURNAL BY TEXAS PERSPECTIVES INC AN AUSTIN ECONOMICCONSULTING FIRM IT IS INTENDED TO PROVIDE A GLIMPSE INTO TEXAS' NEARTERM ECONOMIC FUTURE THE NUMBERS SUGGEST A DISTURBING TREND THE YEARTOYEAR GROWTH RATE IN THE INDEX AFTER PEAKING AT NEARLY 4 IN MARCH HAS FALLEN TO 282 IN THE LATEST WEEK THAT'S AN INDICATION THAT THE ECONOMY WILL CONTINUE TO GROW BUT NOT BY MUCH BASED ON WHAT I'M SEEING RIGHT NOW WE'RE LOOKING AT RELATIVELY LITTLE ECONOMIC GROWTH IN THE STATE OF TEXAS FOR THE REST OF 1993 SAYS JON HOCKENYOS MANAGING DIRECTOR OF TEXAS PERSPECTIVES WHO EXPECTS THE ANNUALIZED JOBGROWTH RATE TO FALL BELOW 1 FOR THE REST OF THE YEAR THE COMPONENTS OF THE TEXAS ECONOMIC INDEX DISPLAYED IN THE TABLE ABOVE SEE ACCOMPANYING ILLUSTRATION WSJ SEPT 8 1993 GIVE FURTHER INSIGHTS INTO THE STATE'S WOBBLINESS THREE OF THE INDICATORS TRACK JOBS AND ALL HAVE BEEN JARRED BY DEFENSERELATED LAYOFFS THE RESTRUCTURING OF CORPORATE AMERICA AND THE LONG DEATH MARCH OF THE DOMESTIC OILANDGAS BUSINESS FOR INSTANCE HELPWANTED ADVERTISING IS GROWING AT JUST OVER 10 USING A FOURWEEK MOVING AVERAGE OF YEARTOYEAR GROWTH AFTER A 20 SPURT IN EARLY SPRING THE AVERAGE MANUFACTURING WORKWEEK CONSIDERED A KEY LEADING INDICATOR BECAUSE OF ITS ABILITY TO PREDICT FUTURE HIRING HAS BEEN STUCK IN THE 42HOUR RANGE FOR MORE THAN A YEAR TEXAS REFINERY OUTPUT MEANWHILE IS FLIRTING WITH ZERO GROWTH WHILE THE CENTER FOR INTERNATIONAL BUSINESS CYCLE RESEARCH'S SHORTTERM US LEADING INDEX CHOSEN TO REFLECT THE TEXAS ECONOMY'S DEPENDENCE ON THE REST OF THE COUNTRY IS EDGING UP ONLY SLOWLY FINALLY THERE'S FLAGGING CONSUMER CONFIDENCE WHICH THE TEXAS COMPTROLLER'S OFFICE CALLS A POTENTIAL SPOILER OF ITS SPRING FORECAST OF 2 TO 3 ANNUALIZED EMPLOYMENT GROWTH FOR THE YEAR INDEED THE COMPTROLLER'S OFFICE NOW SAYS IT EXPECTS TO REVISE ITS EMPLOYMENTGROWTH FORECAST TO CLOSER TO 2 WITH MILITARY DOWNSIZINGS LIKE THIS WHO NEEDS A BUILDUP IN THE LAST SEVERAL MONTHS WHILE OTHER US BASES HAVE BEEN SLASHING THEIR TROOP LEVELS FORT HOOD ONE OF THE LARGEST US ARMY INSTALLATIONS IN THE WORLD JUST CONTINUES TO GET LARGER OVER THE LAST YEAR THE POST HAS GROWN BY 8000 TROOPS TO ABOUT 40000 MOSTLY BECAUSE THE 12000STRONG SECOND ARMORED DIVISION WAS ORDERED MOVED TO FORT HOOD FROM FORT POLK LA THIS HAS MEANT AN ECONOMIC WINDFALL TO NEARBY KILLEEN WHERE HOUSING STARTS ARE UP SHARPLY TO ACCOMMODATE SOLDIERS WHO WANT TO LIVE OFFBASE WITH THEIR FAMILIES ONE OTHER SIGN OF THE KILLEEN BOOM THE TOTAL NUMBER OF KILLEEN CUSTOMERS OF TEXAS UTILITIES CO'S TU ELECTRIC UNIT ROSE 81 TO 29473 IN THE TWELVE MONTHS ENDED JULY 31 COMPARED WITH A 17 INCREASE FOR THE UTILITY'S SERVICE AREA AS A WHOLE 9312270067 930908 TEXAS JOURNAL REFINERS LOOK TO SOUTH AND CENTRAL AMERICA FOR JOINTVENTURE PARTNERS WITH STATE OIL FIRMS BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL DON'T LOOK NOW BUT OIL REFINERS ARE ACTING AS IF THE NORTH AMERICAN FREE TRADE AGREEMENT HAS ALREADY BEEN SIGNED AND TEXAS REFINERS ARE DISCOVERING THAT EXPLOITING PROXIMITY TO SOUTH AND CENTRAL AMERICA CAN GIVE THEM AN EDGE MEXICO AND VENEZUELA ARE EMERGING AS PARTICULARLY IMPORTANT BUSINESS PARTNERS AS TEXAS REFINERS SEEK COMPLEX JOINT VENTURES WITH STATEOWNED OIL COMPANIES LIKE ONE RECENTLY COMPLETED BETWEEN ROYAL DUTCH/SHELL GROUP'S SHELL OIL CO UNIT AND PETROLEOS MEXICANOS OR PEMEX THE STATEOWNED MEXICAN OIL COMPANY OTHER REFINERS THOUGH PERHAPS NOT CANDIDATES FOR MULTIMILLIONDOLLAR JOINT VENTURES ARE STEADILY BOOSTING SALES OF REFINED GASOLINE SOUTH OF THE BORDER EVERYBODY IS LOOKING AT SOUTH AND CENTRAL AMERICAN MARKETS IN A VERY SERIOUS WAY LOOKING FOR PROJECTS THAT ARE THE RIGHT FIT SAYS CALVIN COBB PRESIDENT OF CONSULTING FIRM WRIGHT KILLEN & CO IT'S EASY TO SEE WHY MEXICO'S GROWING APPETITE FOR REFINED PRODUCTS HAS FUELED A JUMP IN US GASOLINE EXPORTS TO ABOUT 100000 BARRELS A DAY THIS YEAR FROM ABOUT 20000 IN 1988 SAYS KEVIN LINDEMER DIRECTOR OF PETROLEUM MARKETS FOR CAMBRIDGE ENERGY RESEARCH ASSOCIATES THE GROWING MEXICAN DEMAND HAS BENEFITED TEXAS AND LOUISIANA GULF COAST REFINERS ALREADY RESPONSIBLE FOR THREEQUARTERS OF US GASOLINE EXPORTS MR LINDEMER SAYS ONLY TWO YEARS AGO DIAMOND SHAMROCK INC DIDN'T SELL ANY GASOLINE TO MEXICO TODAY THROUGH ITS YEAROLD PIPELINE TO LAREDO THE COMPANY'S THREE RIVERS REFINERY SELLS PEMEX ABOUT 4000 BARRELS OF GASOLINE A DAY SAYS ROGER HEMMINGHAUS CHIEF EXECUTIVE OFFICER TAKING THE MARKETING IDEA ONE STEP FURTHER ARE GIANT JOINT VENTURES APART FROM SHELL'S ARRANGEMENT WITH PEMEX LYONDELL PETROCHEMICAL CO JUST SIGNED A DEAL WITH CITGO PETROLEUM CORP A US SUBSIDIARY OF THE VENEZUELAN NATIONAL OIL COMPANY PETROLEOS DE VENEZUELA IN EACH DEAL THE REFINER SOLD ITS NEW PARTNER AN INTEREST IN ITS REFINING OPERATIONS IN RETURN SHELL AND LYONDELL GOT MILLIONS OF DOLLARS IN CAPITAL TO UPGRADE THEIR PLANTS TO HANDLE HARDTOREFINE MEXICAN OR VENEZUELAN CRUDE AND SALES AND SUPPLY AGREEMENTS TO BOOT SHELL WILL SELL AS MANY AS 45000 GALLONS A DAY OF UNLEADED GASOLINE TO PEMEX FOR DISTRIBUTION IN MEXICO AND LYONDELL WILL SELL ITS GASOLINE TO CITGO FOR US MARKETS NOT ONLY DO THE PACTS PROVIDE GUARANTEED MARKETS FOR REFINED PRODUCTS BUT THE JOINT VENTURES ALSO ENSURE THE REFINERS OF A STABLE SUPPLY OF LOWCOST CRUDE OIL WE NOTICED WE HAD BEEN RUNNING RATHER HIGHQUALITY DOMESTIC CRUDE SAYS BOB G GOWER LYONDELL CHIEF EXECUTIVE THAT MEANT THE COMPANY'S PROFIT MARGINS WERE TOO LOW HE ADDS WE NEEDED TO TREND TOWARD LOWERQUALITY CRUDE LYONDELL LACKING A SERVICESTATION NETWORK ALSO NEEDED THE STEADY MARKET FOR REFINED PRODUCTS THAT CITGO COULD PROVIDE OTHER TEXAS REFINERS ARE LOOKING TO SEE WHETHER THEY TOO CAN GET IN ON THE ACTION AT A SHELL GROUNDBREAKING THIS SUMMER PEMEX ADDED TO SPECULATION BY SAYING IT IS LOOKING FOR MORE PARTNERS WRIGHT KILLEN SAYS THERE IS ROOM FOR THREE OR FOUR MORE DEALS ON THE SCALE OF SHELL AND LYONDELL GULF COAST REFINERIES ARE WELLPOSITIONED TO BE PART OF THEM EXPERTS SAY BESIDES THEIR LOCATION THEY TEND TO HAVE MORE COMPLEX EQUIPMENT AND CAN BE MORE EFFICIENTLY UPGRADED TO HANDLE HEAVY CRUDE SAYS LYONDELL'S MR GOWER TEXAS' PROBUSINESS CLIMATE ALSO HELPS CALIFORNIA AND THE EAST COAST ARE UNLIKELY CANDIDATES BECAUSE IT IS VIRTUALLY IMPOSSIBLE TO OBTAIN ENVIRONMENTAL PERMITS FOR MAJOR UPGRADES SAYS PETER J KILLEN EXECUTIVE VICE PRESIDENT OF WRIGHT KILLEN LOUISIANA AND TEXAS HAVE MUCH MORE ACCESSIBLE ENVIRONMENTAL PERMITTING PROCESSES DOING THE DEALS WON'T BE EASY AS LYONDELL FOUND ITS TALKS WITH CITGO AND VENEZUELA BEGAN FIVE YEARS AGO BUT BROKE DOWN FOR YEARS AT A TIME AS BOTH PARTIES SHOPPED AROUND TO MAKE SURE THEY HAD THE BEST DEAL MR GOWER SAYS MR COBB ADDS THESE ARE COMPLEX DEALS THERE IS A VERY HIGH LEVEL OF SOPHISTICATION AND A LOT OF POLITICS BETWEEN TWO DIFFERENT GOVERNMENTS AND TWO DIFFERENT ECONOMIES THE DEALS MAY BE FEW BUT THEIR IMPACT WILL BE SIGNIFICANT SAYS MR COBB AND NOT JUST ON REFINERY PROFITS AT ITS PEAK THE 1 BILLION SHELL UPGRADE WILL MEAN 3000 TEXAS CONSTRUCTION JOBS AND LYONDELL'S 800 MILLION UPGRADE NEARLY AS MANY AMONG TEXAS' 30 OR SO REFINERIES THE BEST CANDIDATES FOR THE NEXT DEAL IN LATIN AMERICA ARE THOUGHT TO BE THE BIG COASTAL REFINERIES THAT ALREADY REFINE SOME HEAVY CRUDE BUT AREN'T SO SOPHISTICATED THAT THEY NO LONGER NEED CAPITAL TO UPGRADE ONE HOT CANDIDATE SOME SAY IS CHEVRON CORP'S PORT ARTHUR REFINERY THE COMPANY WHICH SAID SEVERAL MONTHS AGO IT WANTS TO SELL THE PLANT SAYS ONLY THAT IT IS TALKING WITH SEVERAL PROSPECTIVE BUYERS ANOTHER PROSPECT IDENTIFIED BY ANALYSTS IS COASTAL CORP'S CORPUS CHRISTI PLANT WOULD COASTAL DO A DEAL WITH PEMEX OR PETROLEOS VENEZUELA WE'RE ALWAYS INTERESTED AT A PRICE A SPOKESMAN SAYS NAFTA CLEARLY HASN'T BEEN ESSENTIAL TO SPUR ACTIVITY THOUGH IT HASN'T HURT OUR DEAL HAS NEVER DEPENDED ON NAFTA BECOMING A REALITY BUT IT WAS AN IMPORTANT FACTOR IN SETTING THE TONE OF OUR RELATIONSHIP WITH PEMEX A SHELL SPOKESMAN SAYS WHILE OIL ALREADY FLOWS FREELY ACROSS THE BORDER A NAFTA FAILURE COULD SOUR THE TRUST NOW BUILDING BETWEEN PEMEX AND US REFINERS ALL SIDES MUST HAVE A COMMITMENT TO KEEP FREE TRADE GOING SAYS STEPHEN PA BROWN A SENIOR ECONOMIST AT THE FEDERAL RESERVE BANK OF DALLAS STILL THE GROWING OPPORTUNITIES IN MEXICO HAVE A FLIP SIDE FOR TEXAS REFINERS MR KILLEN SAYS PLANTS THAT DON'T GET A PIECE OF THE ACTION MAY FIND THEMSELVES FROZEN OUT OF THE LOWCOST CRUDE SUPPLIES RATHER THAN USE LOWPRICED HEAVY CRUDE THAT THEY CAN BUY CHEAPLY HE SAYS THEY MAY HAVE TO SETTLE FOR HIGHERQUALITY CRUDE THAT IS NOT AS PROFITABLE TO REFINE 9312270066 930908 TEXAS JOURNAL TEXAS FIRMS TO COLLIDER WHO CARES COMPANIES COMPLAIN MANY CONTRACTS HAVE GONE OUT OF STATE BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL WHEN THE MUCHHAILED SUPERCONDUCTING SUPERCOLLIDER LANDED IN TEXAS FIVE YEARS AGO FORT WORTH BUSINESSMAN MIKE CORNWALL SAW DOLLAR SIGNS FOR HIS METALFABRICATING COMPANY NOW AFTER NETTING ONLY A 1750 CONTRACT FOLLOWING MONTHS OF HANDSHAKES MEETINGS AND RED TAPE MR CORNWALL FEELS BETRAYED BY THE BOOSTERISH PROMISES OF JOBS CONTRACTS AND ECONOMIC IMPACT WE'VE JUST ABANDONED ANY HOPES OF GETTING WORK OUT OF THE COLLIDER SAYS MR CORNWALL I THINK THE PROJECT SHOULD BE SHUT DOWN DIRT FILLED IN AND JUST EVERYBODY LEAVE MR CORNWALL'S FRUSTRATION ECHOES THROUGHOUT THE STATE SCORES OF TEXAS CONTRACTORS AND SUPPLIERS THAT HOPED TO BENEFIT FROM THE 11 BILLION GOVERNMENTBACKED PROJECT HAVE WATCHED AS MUCH OF THE WORK HAS GONE TO LARGE OUTOFSTATE FIRMS IN FACT TO WIN FAVOR IN CONGRESS SUPERCOLLIDER SUPPORTERS EMPHASIZE THAT THE CONTRACTS HAVE BEEN SPREAD ACROSS 48 STATES BUSINESSES HERE ALSO DESCRIBE AN INFLEXIBLE BUREAUCRACY THAT MAKES IT IMPOSSIBLE EVEN TO BID FOR COLLIDER CONTRACTS AND THOSE THAT HAVE BEEN SUCCESSFUL COMPLAIN IT TAKES MONTHS TO GET PAID NOW AS TEXAS OFFICIALS SCRAMBLE TO SAVE THE ATOM SMASHER FROM THE CONGRESSIONAL AXE MANY LOCAL BUSINESSES ARE WONDERING WHETHER IT'S WORTH THE TROUBLE I'VE GOT A LIST OF 15 MAYBE 20 CONTRACTORS THAT I'VE TALKED TO THAT HAVE WORKED ON THE JOB AND HAVE INDICATED THEY DON'T INTEND TO PARTICIPATE IN THE FUTURE IF THE PROJECT CONTINUES SAYS BILL YOUNG PRESIDENT OF SEDALCO INC A FORT WORTH CONTRACTOR WHOSE 178 MILLION IN CONTRACTS INCLUDE THE COLLIDER'S LINEAR ACCELERATOR WE DON'T INTEND TO GO BACK DOWN THERE SUPERCOLLIDER OFFICIALS CONCEDE SOME PROBLEMS WITH PARCELING OUT INFORMATION TO LOCAL FIRMS AS WELL AS DELAYS IN PAYING SOME CONTRACTORS BUT THEY ARGUE THE PROBLEMS STEM MORE FROM THE COMPANIES' OWN INEXPERIENCE WITH LARGE GOVERNMENT PROJECTS AND THAT HUNDREDS OF ENTERPRISES HAVE BENEFITED FROM COLLIDER CONTRACTS IT'S BEEN A HUGE VOLUME OF BUSINESS SAYS SUPERCOLLIDER SPOKESMAN RUSSELL WYLIE JUST TRYING TO KEEP UP WITH IT AND MAKE SURE NOBODY GETS LOST IS A BIG JOB BUT WE DO OUR DEADLEVEL BEST TO MAKE SURE PEOPLE ARE PROPERLY TAKEN CARE OF EARLIER THIS SUMMER THE US HOUSE OF REPRESENTATIVES VOTED TO KILL FUNDING FOR THE SUPERCOLLIDER TO STAY ALIVE THE PROJECT MUST WIN THE SUPPORT OF THE SENATE BUT WHILE MUCH OF THE NATIONAL DEBATE AROUND THE SUPERCOLLIDER HAS FOCUSED ON ITS SCIENTIFIC VALUE OR NATIONAL BUDGET CONSTRAINTS IN TEXAS THE PROJECT IS CLEARLY VIEWED AS A BOON TO TEXAS BUSINESSES AND THERE'S NO QUESTION THAT FOR SOME COMPANIES AND WORKERS THE LOSS OF THE COLLIDER WOULD BE DEVASTATING THE PROJECT ALREADY HAS REACHED ITS ULTIMATE EMPLOYMENT LEVEL PROVIDING ABOUT 2100 PERMANENT JOBS RANGING FROM SECRETARIES EARNING 18000 TO SCIENTISTS WITH SALARIES OF AS MUCH AS 100000 SUPERCOLLIDER OFFICIALS ESTIMATE THAT ABOUT 1050 CONSTRUCTION WORKERS WERE ON THE JOB AT THE TIME OF THE HOUSE VOTE THAT HAS BEEN CUT TO ABOUT 200 BECAUSE SOME PROJECTS WERE HALTED IMMEDIATELY BUT WHILE THESE WORKERS AND COMPANIES WOULD BE HURT BY THE DEMISE OF THE SUPERCOLLIDER IT'S ALSO CLEAR THAT THE IMMEDIATE IMPACT ON THE TEXAS ECONOMY WOULD BE MINIMAL BERNARD WEINSTEIN DIRECTOR OF THE UNIVERSITY OF NORTH TEXAS CENTER FOR ECONOMIC DEVELOPMENT IS A SUPERCOLLIDER SUPPORTER HE BELIEVES THAT IN THE LONG RUN IT WILL MAKE THE DALLAS AREA A MAJOR CENTER FOR SCIENTIFIC RESEARCH BUT HE CONCEDES OVER A MAJOR METROPOLITAN AREA YOU COULD ARGUE THE NUMBER OF JOBS IS NOT THAT IMPORTANT IN ECONOMIC TERMS IF THE SUPERCONDUCTING SUPERCOLLIDER SHUTS DOWN WHAT WILL HAPPEN TO THE UNEMPLOYEMENT RATE IN THE DALLAS AREA I DON'T KNOW IT MIGHT MOVE A TENTH OF A PERCENTAGE POINT THAT KIND OF NUMBER CERTAINLY DOESN'T MATCH THE IMPRESSION GIVEN BY STATE OFFICIALS PREDICTING DIRE STRAITS IF THE PROJECT IS KILLED BUT IT POINTS TO PERHAPS THE MOST TROUBLING QUESTION FOR MANY TEXAS COMPANIES HOW MANY OF THE SUPERCOLLIDER DOLLARS ARE ACTUALLY GOING TO TEXAS FIRMS EFFORTS TO TRACK LOCAL CONTRACTS ARE OFTEN SKEWED BECAUSE THEY INCLUDE BIG CONTRACTS TO OUTOFSTATE FIRMS THAT HAVE SET UP A LOCAL BILLING ADDRESS IN ONE SUMMARY PROVIDED BY SUPERCOLLIDER OFFICIALS ALL OF A 300 MILLION CONTRACT TO PARSONS BRINCKERHOFF INC A NEW YORK CONSTRUCTION COMPANY AND MORRISON KNUDSEN CORP A BOISE IDAHO ENGINEERING FIRM WAS CREDITED TO TEXAS A STUDY BY THE NORTH TEXAS COMMISSION A DALLASFORT WORTH AREA BUSINESS GROUP SHOWS THAT ABOUT 72 OF THE MONEY SPENT ON SUPERCOLLIDER CONTRACTS IS GOING TO OUTOFSTATE COMPANIES ACCORDING TO THE COMMISSION ONLY ABOUT 293 MILLION OF CONTRACTS HAVE GONE TO TEXAS FIRMS BUT THAT UNDERSTATES THE TRUE VALUE TO TEXAS SUPPORTERS SAY MUCH OF THE MONEY GOING TO OUTOFSTATE FIRMS IS STILL BEING SPENT IN TEXAS MOREOVER AT THIS POINT OBVIOUSLY THE PROJECT IS IN THE CONSTRUCTION STAGE SAYS THOMAS D WILLIAMS VICE CHAIRMAN OF THE TEXAS NATIONAL RESEARCH LABORTORY COMMISSION WHICH OVERSEES 1 BILLION IN PROMISED STATE SPENDING ON THE PROJECT WE'VE ONLY JUST BEGUN TO FEEL THE EFFECTS OF THE LABORATORY THAT ARGUMENT DOESN'T MEAN MUCH TO SCOTT MAHAFFEY PRESIDENT OF COHN & GREGORY INC A FORT WORTH INDUSTRIALSUPPLY COMPANY HE ATTENDED SEVERAL ALLDAY MEETINGS DETAILING HOW TO DO BUSINESS WITH THE SUPERCOLLIDER FILLED OUT ALL THE PROPER PAPERWORK AND EVEN SET UP AN ACCOUNT FOR DIRECT DEPOSIT OF PAYMENTS FOR SUPERCOLLIDER WORK MR MAHAFFEY SAYS REPEATED ATTEMPTS TO BE PLACED ON A MAILING LIST FOR BID PROPOSALS FAILED AND A SIMPLE ATTEMPT TO FIND OUT ABOUT A PIPING CONTRACT PROVED FRUITLESS WHEN HE COULDN'T FIND ANYBODY WHO KNEW THE ANSWER TO HIS QUESTION COHN & GREGORY MANAGED TO WIN A 9200 ORDER FOR CRYOGENIC VALVES BUT THE COMPANY SAYS IT ACTUALLY LOST MONEY BY TRYING TO DO BUSINESS WITH THE COLLIDER I'VE NOT RECOUPED MY INVESTMENT IN MANPOWER AND EFFORT THROUGH ONE ORDER MR MAHAFFEY SAYS I THINK THE SUPERCOLLIDER IS SOMETHING THAT AS A NATION WE PROBABLY SHOULD PURSUE BUT AS FAR AS A WINDFALL FOR LOCAL SMALL BUSINESSES AND THE TEXAS AREA I'M NOT SURE IT'S EVERYTHING WE WERE LED TO BELIEVE IT WOULD BE THE PROBLEM TEXAS BUSINESSES SAY IS A MASSIVE BUREAUCRACY THAT TENDS TO FAVOR LARGE OUTOFSTATE FIRMS OVER HOMEGROWN BUSINESSES THE INITIAL CONSTRUCTION CONTRACT WAS AWARDED TO A JOINT VENTURE OF PARSONS BRINCKERHOFF AND MORRISON KNUDSEN WHICH IN TURN SELECT SUBCONTRACTORS TO PERFORM THE WORK CONTRACTORS SAY THE SUPERCOLLIDER LACKS A CENTRAL CLEARINGHOUSE FOR INFORMATION ABOUT BIDDING OPPORTUNITIES SUPPLIERS MUST MUDDLE THROUGH DOZENS OF BUYERS TO FIND THE RIGHT PERSON IT WAS REAL TOUGH TRYING TO FIND OUT WHO WE NEEDED TO TALK TO SAYS ROY TULEY A PARTNER IN LASERTECH A CLEBURNE COMPANY THAT REMANUFACTURES CARTRIDGES FOR LASER PRINTERS MR TULEY SAYS THAT FOR ABOUT SIX MONTHS IN 1989 HIS COMPANY PROVIDED CARTRIDGES FOR ABOUT 50 LASER PRINTERS IN SUPERCOLLIDER OFFICES BUT ONE DAY THE ORDERS SIMPLY STOPPED DESPITE REPEATED ATTEMPTS HE HAS NEVER FOUND OUT WHY WE GOT TO THE POINT WHERE WE COULDN'T EVEN GET TO THE PEOPLE WE HAD DEALT WITH SAYS MR TULEY THE COMPLAINTS AREN'T LIMITED TO COMPANIES WHO WON MINOR CONTRACTS SEVERAL FIRMS WITH MULTIMILLIONDOLLAR CONTRACTS SAY A TIGHT CONSTRUCTION SCHEDULE REQUIRED THEM TO BEGIN WORK BEFORE DESIGNS WERE COMPLETE AS DESIGN CHANGES WERE MADE COSTS INCREASED BUT COLLIDER OFFICIALS BALKED AT PAYING FOR THE CHANGES FOR INSTANCE MR YOUNG OF SEDALCO SAYS HE IS STILL ARGUING WITH THE PARSONS BRINCKERHOFFMORRISON KNUDSEN JOINT VENTURE OVER 1 MILLION TO 3 MILLION WORTH OF PAYMENTS STEMMING FROM DESIGN CHANGES THEY'VE JUST KILLED US SAYS ANOTHER CONTRACTOR WHOSE COMPANY IS NEGOTIATING FOR SEVERAL PAYMENTS THE SUPERCOLLIDER HAS DEFINITELY PROVIDED JOBS BUT WHETHER PEOPLE HAVE MADE MONEY OR LOST MONEY IS A DIFFERENT QUESTION CHARLES ROBINSON OWNER OF OPEN SYSTEMS RESOURCES A DALLAS PROVIDER OF COMPUTER SERVICES SAYS HE HAS LOST MONEY ON HIS 36 MILLION COLLIDER CONTRACT HE BLAMES SOME OF THE PROBLEMS ON THE FUNDING UNCERTAINTY CREATED BY CONGRESS BUT LATE PAYMENTS AND DIFFICULTIES GETTING BID INFORMATION COMPOUNDED THE PROBLEMS ALL THROUGH 1992 60 OF MY PAYMENTS WERE RUNNING LATE MR ROBINSON SAYS FOR A SMALL BUSINESS LATE IS LATE THE SUPERCOLLIDER HAS REPRESENTED A TREMENDOUS ASSET AND A LIABILITY TO US AT THE SAME TIME PAUL GILBERT PROJECT DIRECTOR FOR THE JOINTVENTURE TEAM BLAMES PAYMENT DELAYS ON THE SUBCONTRACTORS SAYING THEY FAILED TO PROVIDE COST INFORMATION SO THAT PRICE ISSUES COULD BE RESOLVED BEFORE BEGINNING THE WORK HE ALSO SAYS THAT SMALL FIRMS ACCOUNT FOR SOME 40 OF COLLIDERCONSTRUCTION BUSINESS I THINK THERE IS A LIMITED POPULATION OF PEOPLE EXPRESSING THIS CONCERN SAYS MR GILBERT I THINK THEY'RE QUITE VOCAL AND I'M SORRY THEY'RE SO UPSET AND FEEL IT IS IMPORTANT TO PASS THIS ON TO OTHERS I DON'T THINK IT HELPS THEM AND I DON'T THINK IT HELPS THE PROJECT 9312270065 930908 TEXAS JOURNAL AT LEAST IT ISN'T THE AGENCY IN CHARGE OF TRAVEL SAFETY KIRK WATSON CHAIRMAN OF THE TEXAS AIR CONTROL BOARD SAYS HE STRONGLY AGREES WITH THE LEGISLATURE'S DECISION TO CONSOLIDATE HIS AGENCY UNDER THE UMBRELLA OF A NEW ENVIRONMENTAL SUPERAGENCY THE TEXAS NATURAL RESOURCES CONSERVATION COMMISSION ELIMINATING HIS VOLUNTEER POSITION MR WATSON ADDED THAT JUST GOES TO SHOW YOU SHOULDN'T CREATE LEGISLATIVE COMPROMISES AT THE 11TH HOUR MR WATSON ALSO EXPRESSED RELIEF THAT HE WILL BE ABLE TO RETURN FULL TIME TO HIS PRACTICE AS A PERSONALINJURY ATTORNEY IN AUSTIN A PAYING JOB UNLIKE HIS DEMANDING PROBONO SERVICE AT THE AIR CONTROL BOARD 9312270064 930908 TEXAS JOURNAL DALLAS FREEZE TRY TO AVOID COLD SHOULDER BY ROBERT TOMSHO THE FLEDGLING CENTRAL HOCKEY LEAGUE KNEW THAT FINDING A NICHE IN A SUNPARCHED SPORTS MECCA LIKE DALLAS WOULD BE A MARKETING CHALLENGE BUT IT GOT A BONERATTLING BODY CHECK IN MARCH WHEN THE NATIONAL HOCKEY LEAGUE'S MINNESOTA NORTH STARS ANNOUNCED THEIR MOVE TO DALLAS PLAYING IN A DRAFTY OLD COLISEUM DUBBED THE COOLER THE FREEZE DREW ONLY 4427 FANS PER GAME LAST SEASON THE CHL'S FIRST COMPARED WITH 7827 FOR LEAGUELEADING OKLAHOMA CITY AND NOW WITH A 600000 ANNUAL BUDGET IT MUST FACE OFF AGAINST AN NHL CLUB WITH THREE PLAYERS MAKING MORE THAN 1 MILLION A SEASON HOPING TO POSITION THEMSELVES AS AN OFFBEAT LOWBUDGET ALTERNATIVE TO THE STARS THE FREEZE HAVE HIT UPON A SLOGAN SOME CALL US CHEAPSKATES TO EMPHASIZE THAT ITS TOP TICKET PRICES ARE 12 A SEAT COMPARED WITH 150 FOR THE STARS BUT THE FREEZE CLEARLY DON'T THINK IT CAN WIN THIS BATTLE HEADTOHEAD SO THE TEAM HAS TENTATIVE PLANS FOR AN ELVISIMPERSONATOR NIGHT APPEARANCES BY PROFESSIONAL WRESTLERS AND LIVE DOT RACES WITH SKATERS DRESSED AS PUCKS FREEZE FANS ARE ALSO LIKELY TO ENCOUNTER A CAPED CRUSADER CAPTAIN FREEZO AND A GIANT BIRD NAMED SLAPSHOT IF THIS DOESN'T WORK SAYS TOM KOCH GENERAL MANAGER THEN AT LEAST WE'VE DONE OUR BEST TO MAKE IT FUN 9312270063 930908 TEXAS JOURNAL NEW PLAYER HEATS UP THE PICKUP GAME BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL THE COUNTRY'S HOTTEST MARKET FOR PICKUP TRUCKS IS GETTING HOTTER THE 1994 RAM THE FIRST ALLNEW FULLSIZE PICKUP FROM DODGE IN MORE THAN TWO DECADES IS COMING OUT THIS MONTH BEARING A HEAVY BURDEN TO ESTABLISH THE CHRYSLER CORP UNIT AS ONE OF THE BIG BOYS IN LIGHT TRUCKS ALONGSIDE FORD MOTOR CO AND GENERAL MOTORS CORP'S CHEVROLET DIVISION AND THE FIRST AND BIGGEST STEP TOWARD THAT GOAL IS FOR THE RAM TO SHAKE THINGS UP IN TEXAS THE NATION'S MOST COMPETITIVE AND IMPORTANT TRUCK MARKET A PICKUP TRUCK IN DALLAS OR HOUSTON IS NOT JUST A WORK VEHICLE IT'S AN ALTERNATIVE TO A PASSENGER CAR SAYS MARTY LEVINE DODGE'S MARKETING MANAGER FOR TRUCKS YOU TALK ABOUT TEXAS AND IT'S THE KEY TO THE SUCCESS OF ANY TRUCK MANUFACTURER WHILE TEXANS LAST YEAR ACCOUNTED FOR 9 OF ALL LIGHTTRUCK SALES AND 11 OF ALL PICKUP SALES THE STATE'S IMPACT GOES BEYOND THE NUMBERS IN TERMS OF TRADITIONAL CAR BUYERS SWITCHING TO TRUCKS TEXAS IS THE BELLWETHER AND IT'S SPREADING TO OTHER MAJOR MARKETS SAYS CHRISTOPHER CEDERGREN SENIOR VICE PRESIDENT OF AUTOPACIFIC GROUP INC A CONSULTING FIRM IN SANTA ANA CALIF THAT IS WHY YOU SEE GM FORD AND CHRYSLER THROWING RECORD DOLLARS INTO FULLSIZE PICKUPS THE NEW RAM MAY BE IN FOR A TOUGH HAUL BECAUSE OF MANY TEXAS TRUCK OWNERS' LONGTIME LOYALTY TO OTHER LINES OFTEN HANDED DOWN BETWEEN GENERATIONS THAT'S SOMETHING TRUCK MAKERS ESPECIALLY UNDERSTAND WHEN THEY ARE TEXANS THEMSELVES LIKE CHEVROLET'S GENERAL MANAGER JC JIM PERKINS WHO WORKS IN DETROIT BUT STILL RETURNS FREQUENTLY TO HIS RANCH IN CANTON YOU SEE ENTIRE FAMILIES IN TEXAS THAT HAVE NEVER OWNED ANYTHING OTHER THAN ONE BRAND OF PRODUCT SAYS MR PERKINS AND IF YOU BUY ANYTHING OUT OF THAT CIRCLE WELL YOU'RE CONSIDERED A BIT OF AN OUTCAST DODGE HOWEVER IS STARTING TO MAKE INROADS LARRY L FOWLER JR AN ARLINGTON LAWYER COMES FROM A FAMILY THAT HAS OWNED ONLY CHEVY AND FORD PICKUPS BUT THE NEW RAM WITH A BEEFY INDUSTRIAL DESIGN AND POWERFUL DIESEL ENGINE HAS HIM THINKING ABOUT STRAYING BEFORE NO ONE WOULD HAVE EVER CONSIDERED A DODGE THEY USED TO BE UGLY TRUCKS SAYS MR FOWLER WHO HAS LOGGED 210000 MILES ON HIS CURRENT FORD PICKUP AND PLANS TO START SHOPPING THIS FALL FOR A REPLACEMENT THIS TIME HE SAYS HIS DECISION MAY COME DOWN TO WHO HAS THE BEST INCENTIVES THERE SHOULD BE NO SHORTAGE OF DEALS FOR MR FOWLER AND OTHER TEXANS AS DODGE TRIES TO ESTABLISH THE RAM WHILE FORD AND CHEVROLET AIM TO PROTECT THEIR HEALTHY MARKET SHARES IN THE STATE THOUGH FORD AND CHEVY EXECUTIVES WON'T SAY WHETHER THEY PLAN ANY COUNTERMOVES THEIR DEALERS HERE SAY THEY ALREADY MATCH MOST OFFERS BESTOWED BY THEIR RIVALS ANYTHING FORD DEALERS DO WE DO ANYTHING WE DO THEY DO SAYS PAT DORAN GENERAL SALES MANAGER OF DORAN CHEVROLET IN NORTH DALLAS MOREOVER DEALERS SOMETIMES SELL TRUCKS AT COST TO KEEP THEIR SALES FROM GOING TO RIVALS THE DEALER IS GOING TO DO ANYTHING HE CAN TO EFFECT THE SALE WITHIN REASON SAYS SAM PACK OWNER OF LEE JARMAN FORD IN CARROLLTON TYPICALLY HE IS NOT GOING TO GO BELOW COST THE COMPANIES ALSO SEEK COMPETITIVE EDGES THROUGH EXCLUSIVE DEALS FORD FOR EXAMPLE OFFERS 500 CASH REBATES ON FSERIES TRUCKS TO MEMBERS OF THE TEXAS FARM BUREAU AND TEXAS AND SOUTHWESTERN CATTLE RAISERS ASSOCIATION DODGE'S ROLLOUT OF THE RAM IS SURE TO INTENSIFY SELLING PRESSURE THE COMPANY HAS TOLD ITS DEALERS IT WILL SEND THE LION'S SHARE OF EARLY PRODUCTION TO TEXAS TO MOVE THE TRUCKS OUT DODGE IS SPENDING MORE ON MARKETING IN TEXAS THAN EVER BEFORE THOUGH IT WON'T GIVE DETAILS AND MORE IN TEXAS THAN IN ANY OTHER STATE DODGE HAS PUT THE NEW TRUCK'S BRAND ON THE MESQUITE RODEO HELD IN THE TOWN OF MESQUITE AND TELECAST ON CABLE'S NASHVILLE NETWORK THE AUTO MAKER HAS BEEN A SPONSOR OF THE RODEO FOR YEARS THIS YEAR ITS DEAL INCLUDES A BULL USED IN RIDING CONTESTS NAMED THE RAM LARAMIE SLT AFTER THE TOPOFTHELINE NEW MODEL BEFORE THE BULL STARTED WORKING FOR DODGE HE WAS KNOWN AS THE EXORCIST SO FAR NOBODY HAS BEEN ABLE TO STAY ON HIM LONG ENOUGH TO WIN AT NEXT MONTH'S STATE FAIR DODGE WILL SPONSOR A DIVING EXHIBITION BY FORMER OLYMPIANS AND IT PLANS TO DISPLAY AS MANY AS 10 OF ITS NEW RAM PICKUPS THROUGHOUT THE FAIRGROUNDS IT WILL HAVE PLENTY OF COMPANY AND NOT JUST FROM THE EXPECTED THREE MILLION SPECTATORS THAT'S BECAUSE THE FAIR HAS COME TO LOOK MORE LIKE AN AUTO SHOW THAN A SHOWCASE FOR COWS QUILTS AND PRESERVES GM'S GMC DIVISION WILL BE THE FAIR'S OFFICIAL TRUCK MAKER AND FORD WILL SHOW A LIMITED EDITION DALLAS COWBOYS FSERIES PICKUP IN BLUE AND SILVER IN DESIGNING THE NEW RAM DODGE RELIED HEAVILY ON MARKET RESEARCH DONE IN TEXAS MR LEVINE SAYS THE COMPANY FOUND IT WOULD HAVE TO OVERCOME A POOR FOLK IMAGE IN THE MINDS OF MANY TEXANS PARTLY BECAUSE OF THE OLD RAM'S DATED DESIGN TO STAND OUT THE COMPANY DECIDED TO GO WITH A BOLD LOOK REMINISCENT OF 18WHEELERS FOR THE NEW RAM'S EXTERIOR THE PICKUP HAS A WIDE GRILLE AND A HOOD THAT FLARES OUT OVER THE TRUCK'S HEADLIGHTS FOR A SCULPTURED APPEARANCE THAT DODGE COMPARES TO A FREIGHTLINER SEMI THE TRUCK'S INTERIOR IS MORE CARLIKE THAN EARLIER RAMS IT HAS A FOLDDOWN COMPARTMENT FOR BRIEFCASES LAPTOP COMPUTERS OR TOOLBOXES AND THE COMPANY ADDED SAFETY FEATURES USUALLY ASSOCIATED WITH CARS INCLUDING ANTILOCK BRAKES DODGE ALSO FOCUSED ON PROVIDING THE TOWING AND HAULING CAPACITY MANY TEXANS CRAVE THE RAM'S OPTIONAL V6 DIESEL ENGINE CAN TOW 12300 POUNDS THAT COMPARES WITH 10000 POUNDS FOR BOTH CHEVROLET'S FULLSIZE C/K PICKUP WITH A V8 TURBO DIESEL ENGINE AND FORD'S F250 PICKUP WITH A TURBO DIESEL V8 ENGINE IN TEXAS WE WILL HAVE TRAILERTOWING DEMONSTRATIONS SO THE SALESMEN CAN EXPERIENCE WHAT THEIR CUSTOMERS ARE EXPERIENCING MR LEVINE SAYS DODGE WILL MISS OUT FOR A TIME ON A HOT TEXAS TRUCK TREND EXTENDEDCAB PICKUPS THE ROOMIER CABS HAVE BEEN A HIT WITH TEXANS WHO LIKE THEIR ADDED PASSENGERCARRYING CAPABILITY THE STATE ACCOUNTS FOR 185 OF ALL EXTENDEDCAB SALES BUT DODGE WON'T HAVE AN EXTENDEDCAB VERSION OF THE RAM UNTIL THE 1995 MODEL YEAR 9312270062 930908 TEXAS JOURNAL DOME ENVY STRIKES HOUSTON AS SOME MULL NEW STADIUM THEY HAVE TWO GOALS SHAME SAN ANTONIO'S ALAMODOME AND CAPTURE A SUPER BOWL BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON OFFICIALS AND PRIVATE INVESTORS ARE QUIETLY COOKING UP PLANS FOR A NEW COVERED FOOTBALL STADIUM THAT WOULD SEAT AT LEAST 70000 FANS ACCORDING TO PEOPLE CLOSE TO THE SITUATION THE GOAL SO TO SPEAK IS TO LAND THE CITY'S FIRST SUPER BOWL AND THE ESTIMATED 100 MILLION ONEWEEK ECONOMIC BOOST THAT GOES WITH IT BY 1999 THE NATIONAL FOOTBALL LEAGUE HAS NEVER GRANTED HOUSTON'S REPEATED BIDS FOR THE BIG FEBRUARY GAME PARTLY OVER CONCERNS THAT THE ASTRODOME THE NATION'S FIRST DOMED STADIUM BUILT IN 1965 IS TOO SMALL THE ASTRODOME SEATS 62000 AND THE NFL HAS SET 70000 AS THE MINIMUM CAPACITY FOR A STADIUM TO HOST THE SUPER BOWL A NEW STADIUM THOUGH WOULD DO MORE THAN LAND THE SUPER BOWL IT'S ALSO A QUESTION OF PRIDE HOUSTON OFFICIALS ARE MIFFED ABOUT SAN ANTONIO'S NEW ALAMODOME A 65000SEAT STADIUM THAT OPENED IN MAY PARTICULARLY AFTER HOUSTON OILERS' MANAGEMENT CHOSE TO HAVE THE TEAM PLAY TWO EXHIBITION GAMES IN THE ALAMODOME THIS SUMMER I'D LIKE TO HAVE A STADIUM WITH EVEN ONE MORE SEAT THAN SAN ANTONIO HAS SAYS MIKE MCCONN SPORTS DEVELOPMENT DIRECTOR OF THE GREATER HOUSTON CONVENTION AND VISITORS BUREAU THE PLANNING FOR A NEW DOME IN HOUSTON HASN'T REACHED THE PUBLIC COMMITTEE OR HEARING STAGE MR MCCONN SAYS I THINK THERE ARE REASONS FOR THE PEOPLE BEHIND IT TO KEEP A LOW PROFILE HE SAYS IT MAY NOT BE POLITICALLY CORRECT TO TALK THIS UP MUCH YET A LOT OF MONEY WAS SPENT TO RENOVATE THE ASTRODOME JUST THREE YEARS AGO SO IT MAY BE TOO SOON TO TURN AROUND AND START TALKING ABOUT POSSIBLE PUBLIC MONEY FOR A BRAND NEW STADIUM ALREADY WHAT'S MORE HE WONDERS WHAT DO WE DO WITH THE ASTRODOME GOOD QUESTION THERE'S A STUDY UNDER WAY TO ADD 10000 SEATS BY EITHER RAISING THE ROOF OR DIGGING OUT EXTRA SPACE BUT MR MCCONN SAYS THAT'S GOING TO PUT SOME SEATS FAR FROM THE ACTION HE SAYS SOMEBODY'S GOING TO END UP SITTING IN THE NEXT COUNTY SEE RELATED LETTER LETTER TO THE EDITOR WSJ SEPT 15 1993 9309080145 9309160075 YY93 MM09 YY93 MM12 9312270058 930915 TEXAS JOURNAL LETTER TO THE EDITOR BOB GRIESE FRAN TARKENTON AND THEIR TEAMMATES MIGHT BE VERY INTERESTED TO KNOW THAT THERE HAVE BEEN NO SUPER BOWLS PLAYED IN HOUSTON AS WOULD THE THOUSANDS OF FANS WHO ATTENDED A GAME IN RICE STADIUM I'LL LET YOU DETERMINE WHAT YEAR IT WAS YOUR REPORTER WAS CORRECT IN ONE ASPECT OF HIS ARTICLE HOUSTON HAS NEVER HOSTED A SUPER BOWL IN FEBRUARY BUT NEITHER HAS ANY OTHER CITY ED SUPER BOWL VIII 1974 RICE STADIUM MIAMI 24 MINNESOTA 7 ATTENDANCE 71882 TEMPERATURE 56 DEGREES 9312270055 930922 TEXAS JOURNAL WINNERS & LOSERS EMMITT SMITH ENDING A BITTER HOLDOUT THE DALLAS COWBOYS FOOTBALL STAR SIGNED A 136 MILLION FOURYEAR CONTRACT THAT MAKES HIM THE HIGHESTPAID RUNNING BACK IN THE NFL TEXAS S&LS THE STATE'S 63 REMAINING THRIFTS LED THE NATION IN PROFITS IN THE SECOND QUARTER WITH EARNINGS OF 160 MILLION IN SECOND PLACE OHIO THRIFTS AT 126 MILLION SOUTHWESTERN BELL CUSTOMERS THE THIRD COURT OF APPEALS REJECTED A SOUTHWESTERN BELL EFFORT TO PASS THROUGH A 228 MILLION TAX INCREASE TO ITS CUSTOMERS BARNEY THE DINOSAUR FOUR BOYS PUMMELED A MAN IN A PURPLE AND GREEN DINOSAUR SUIT APPEARING AT A KMART OPENING IN GALVESTON LYONS GROUP OF ALLEN LATER CRITICIZED KMART FOR USING A BARNEY IMPERSONATOR WITHOUT LYONS' PERMISSION AMERICAN AIRLINES EMPLOYEES THE AMR CORP UNIT PLANS TO LAY OFF MORE THAN 5000 WORKERS BEFORE THE END OF 1994 PRICE CO THE SAN DIEGO RETAILER WILL CLOSE ITS PRICE CLUB WAREHOUSE OUTLETS IN HOUSTON AND DALLAS ESSENTIALLY CEDING THE TEXAS MARKET TO WALMART STORES' SAM'S CLUBS 9312270053 930915 TEXAS JOURNAL RETAILERS' HOT SALES GROWTH TURNS TEPID AMID WEAKNESS IN CONSUMER CONFIDENCE BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL TEXAS CONSUMERS WHO HAD BEEN OUTPACING THE REST OF THE COUNTRY IN RETAIL SPENDING HAVE BEGUN WATCHING THEIR WALLETS MORE CLOSELY TEXAS RETAIL SALES GREW 53 IN THIS YEAR'S FIRST SIX MONTHS TRAILING THE NATIONAL RISE OF 6 IN THE SAME PERIOD AND ENDING TWO YEARS OF INCREASES SEVERAL POINTS ABOVE THE US AVERAGE THOUGH TEXAS SALES GAINS REMAIN SUBSTANTIAL THE SLOWDOWN IN GROWTH AND PARTICULAR WEAKNESS IN HOUSTON WEST TEXAS AND MANY BORDER COMMUNITIES HAS SOME ANALYSTS WARNING OF A POSSIBLE SHAKEOUT AMONG THE STATE'S MORE VULNERABLE STORES ALL OF A SUDDEN RETAILERS AREN'T EVEN TALKING ABOUT RAISING PRICES SAYS FIONA SIGALLA AN ASSOCIATE ECONOMIST WITH THE FEDERAL RESERVE BANK OF DALLAS THEY ARE SAYING IF THEY DON'T KEEP THEIR PRICES LOW IF THEY DON'T INCREASE THEIR DISCOUNTS THEN THEIR INVENTORIES WILL BUILD UP THE SLOWER GROWTH SURELY STEMS IN PART FROM THE SAME WEAK CONSUMER CONFIDENCE THAT IS DAMPING ECONOMIC ACTIVITY NATIONWIDE BUT ECONOMISTS AND ANALYSTS SAY IT ALSO HAS SOME DISTINCTIVE TEXAS UNDERPINNINGS INCLUDING TIGHTER RESTRICTIONS ON BORDER TRADE AND CONCERNS ABOUT THE FUTURE OF FEDERAL FUNDING IN SEVERAL KEY AREAS MS SIGALLA SAYS SALES MAY HAVE BEEN HURT BY UNCERTAINTY OVER THE SPACE STATION AND SUPERCONDUCTING SUPERCOLLIDER EARLIER THIS YEAR THE US HOUSE NARROWLY APPROVED CONTINUED SUPPORT FOR A REVISED 30 BILLION SPACE STATION BUT DEFEATED FUNDING FOR A 10 BILLION SUPERCOLLIDER LEAVING THE FATE OF THE NORTH TEXAS PROJECT UP TO THE SENATE THIS FALL CONSUMERS MAY BE SIMILARLY WARY BECAUSE OF DEFENSEINDUSTRY LAYOFFS AND BASE CLOSINGS SAYS DENNIS VAN ZELFDEN A RETAIL ANALYST AT THE BROKERAGE FIRM RAUSCHER PIERCE REFSNES INC IN DALLAS THOUGH TEXAS HASN'T BEEN HIT NEARLY AS HARD AS CALIFORNIA LOCKHEED CORP'S PLANS TO LAY OFF AT LEAST 6000 EMPLOYEES FROM ITS FORT WORTH OPERATIONS BY THE END OF 1994 AND PENTAGON PLANS TO SHUT THE DALLAS NAVAL AIR STATION IN THE CURRENT ROUND OF BASE CLOSINGS MAY BE FACTORS SALES ALONG THE BORDER HAVE BEEN HURT SINCE MEXICO LAST YEAR BEGAN ENFORCING A POLICY THAT REQUIRES ITS RESIDENTS TO PAY A STIFF TARIFF WHEN BRINGING BACK MORE THAN 50 IN US GOODS PEOPLE GET USED TO IT BUT IT HAS HAD AN IMPACT ON OUR BUSINESS SAYS A WALMART EMPLOYEE IN LAREDO IN WEST TEXAS SALES ARE SLUGGISH BECAUSE OF THE REGION'S DEPENDENCE ON OIL JAY HOWELL STORE MANAGER FOR ANTHONY'S A DEPARTMENTSTORE CHAIN OWNED BY CR ANTHONY CO OF OKLAHOMA CITY SAYS SALES AT HIS MIDLAND STORE ARE AT ABOUT THE SAME LEVEL AS IN 1992 LET'S SAY IT'S NOT EXTRA HOT MR HOWELL SAYS SOME RETAILERS AND ANALYSTS CAUTION AGAINST UNDUE PESSIMISM AND IN FACT SOME OF THE CONCERN MAY STEM FROM THE FACT THAT THE PAST TWO YEARS WERE SO STRONG TEXAS RETAIL SALES GREW 44 IN 1991 FAR OUTPACING THE 09 RISE THAT YEAR FOR THE US ACCORDING TO THE COMMERCE DEPARTMENT AN 81 JUMP LAST YEAR WAS NEARLY DOUBLE THE 49 RISE FOR THE COUNTRY THOUGH FIGURES ON TEXAS RETAIL SALES FOR THE PAST TWO MONTHS AREN'T YET AVAILABLE THE LATEST US REPORT RELEASED YESTERDAY SHOWED THE NATION'S SALES STAYED STRONG RISING 63 IN AUGUST FROM A YEAR EARLIER YOU'D CERTAINLY LIKE TO BE BETTER THAN THE REST OF THE COUNTRY BUT IT'S NOT LIKE THE SKY IS FALLING FOR RETAILERS DOWN HERE SAYS PHIL SMITH A PARTNER IN RETAIL SERVICES WITH ARTHUR ANDERSEN & CO IN DALLAS AND IN FACT FOR SOME CHAINS AND SOME PARTS OF THE STATE SALES ARE RISING BRISKLY PIER 1 IMPORTS INC BASED IN FORT WORTH SAYS SAMESTORE SALES IN NORTH TEXAS INCLUDING DALLASFORT WORTH ROSE 74 IN THE FIRST SIX MONTHS OF ITS FISCAL YEAR WHICH BEGAN FEB 28 COMPARED WITH ITS 35 NATIONAL AVERAGE THE COMPANY'S SOUTH TEXAS SALES INCLUDING HOUSTON ARE ABOUT EVEN WITH THE NATIONAL RATE MERCHANTS AT THE HIGHLAND MALL IN AUSTIN ARE REPORTING STRONG INCREASES IN SALES THIS YEAR SAYS STEVE BALAZS THE MALL'S VICE PRESIDENT AND GENERAL MANAGER WE'RE HAVING A GREAT YEAR THUS FAR MR BALAZS SAYS I THINK AUSTIN IN GENERAL IS HAVING AN EXCEPTIONAL YEAR HE MAY BE RIGHT THAT AUSTIN IS THE EXCEPTION RATHER THAN THE RULE DAYTON HUDSON CORP WHICH OPERATES 99 TARGET AND MERVYN'S DISCOUNT STORES IN TEXAS AND MICHAELS STORES INC AN IRVINGBASED CRAFTS RETAILER BOTH SAY THEY HAVE NOTICED WEAKER SALES AT THEIR TEXAS STORES TEXAS IS DOING A LITTLE WORSE THAN OUR NATIONAL AVERAGE THIS YEAR A DAYTON HUDSON SPOKESMAN SAYS THERE'S NOT A BIG GAP THERE BUT IT'S SOMETHING TO LOOK AT THE STATE'S SALES SURGE LAST YEAR HAD MADE TEXAS A HOT AREA FOR RETAIL EXPANSION BUT WITH SALES GROWTH ALREADY FLAGGING RETAILERS MAY HAVE UNDERTAKEN BRISKER EXPANSION THAN THE MARKET COULD SUSTAIN ALVIN LUBETKIN CHIEF EXECUTIVE OF OSHMAN'S SPORTING GOODS INC SAYS HIS HOUSTONBASED CHAIN'S SALES ARE STRONGEST IN TEXAS BUT A LOT OF STORES ARE OPENING IN THE STATE HE ADDS AND SOME PEOPLE MIGHT BE FEELING THE HEAT WE'RE IN A VERY COMPETITIVE ENVIRONMENT IN THE DALLAS MARKET LAST YEAR SPACE OCCUPIED BY RETAILERS GREW 25 MILLION SQUARE FEET ACCORDING TO THE REALESTATE CONSULTING FIRM M/PF RESEARCH INC DALLAS BUT THIS YEAR WITH DALLASAREA RETAIL SALES GROWING 45 DEMAND FOR SPACE HAS DROPPED TO ITS LOWEST LEVEL IN MORE THAN TWO YEARS THE DALLASFORT WORTH AREA THIS YEAR HAS LOST NEARLY 500000 SQUARE FEET OF RETAIL OCCUPANCY BECAUSE OF STORE CLOSINGS BY SEARS ROEBUCK & CO THE BUD'S WAREHOUSE OUTLET SUBSIDIARY OF WALMART STORES INC AND KMART CORP'S PACE WAREHOUSE UNIT TIMES ARE EVEN HARDER IN HOUSTON WHERE RETAIL SALES HAVE EDGED UP JUST 15 THIS YEAR AFTER FALLING 37 LAST YEAR I THINK RIGHT NOW THE MARKET IS JUST KIND OF BALANCING ITSELF OUT SAYS WILLIAM FORREST PRESIDENT OF REVAC INC A REALESTATE CONSULTANT IN HOUSTON AMONG THE DISCOUNT STORES IN GENERAL YOU'RE GOING TO HAVE SOME SHAKEOUTS SOME ANALYSTS VIEW THE TEXAS RETAIL SLOWDOWN AS A POSITIVE REFLECTION ON THE STATE'S SHOPPERS KURT BARNARD PRESIDENT OF BARNARD'S RETAIL MARKETING REPORT IN NEW YORK SAYS THE SLOWDOWN IS THE PRODUCT NOT OF DIMINISHING CONSUMER CONFIDENCE BUT SIMPLY OF BARGAIN HUNTING IT'S OUR OBSERVATION MR BARNARD SAYS THAT TEXANS HAVE BECOME RATHER SAVVY CONSUMERS 9312270050 930915 TEXAS JOURNAL TRACKING TEXAS THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR ROSE TO 10984 IN THE LATEST WEEK A 287 INCREASE FROM THE YEAREARLIER PERIOD THE YEARTOYEAR GAIN HAS RISEN EVERY WEEK FOR THE PAST SIX WEEKS BUT IT REMAINS WELL BELOW THE MOSTRECENT PEAK OF NEARLY 4 IN EARLY SPRING SUGGESTING ECONOMIC GROWTH WILL REMAIN SLOW IN THE NEAR TERM ONE GOOD SIGN IN THE WEEK ENDED AUG 28 INITIAL CLAIMS FOR UNEMPLOYMENT INSURANCE FELL SLIGHTLY FROM THE PREVIOUS WEEK 9312270049 930915 TEXAS JOURNAL WINNERS & LOSERS ROSS PEROT THE US COMMERCE DEPARTMENT APPROVED A FOREIGNTRADE ZONE THAT INCLUDES LAND SURROUNDING THE NAFTA FOE'S ALLIANCE AIRPORT PROJECT ALAMODOME SAN ANTONIO'S STADIUM HOSTED 59959 PAYING FANS FOR THE JULIO CESAR CHAVEZPERNELL WHITAKER FIGHT THE SECONDLARGEST INDOORBOXING DRAW AFTER THE 1978 MUHAMMAD ALILEON SPINKS FIGHT IN NEW ORLEANS DRESSER INDUSTRIES THE DALLAS OIL AND GASSERVICES AND EQUIPMENT FIRM DREW RAVES FROM ANALYSTS FOR ITS PLANNED 850 MILLION PURCHASE OF BAROID CORP HOUSTON MOHAIR MAKERS VICE PRESIDENT GORE'S COMMISSION ON STREAMLINING GOVERNMENT RECOMMENDED CUTTING SUBSIDIES TO ANGORA GOAT RAISERS TEXAS IS THE BIGGEST US PRODUCER OF MOHAIR SOUTHWESTERN PUBLIC SERVICE CO A FEDERAL BANKRUPTCY JUDGE DENIED THE AMARILLO UTILITY'S REQUEST TO FILE ITS OWN REORGANIZATION PLAN TO BUY EL PASO ELECTRIC CO THE JUDGE HAS APPROVED A COMPETING PLAN FOR CENTRAL & SOUTH WEST CORP TO BUY EL PASO FOR ABOUT 22 BILLION OIL PRODUCERS OIL PRICES CLOSED FRIDAY AT 1676 FOR OCTOBER DELIVERY THE LOWEST LEVEL SINCE JULY 1990 9312270048 930908 TEXAS JOURNAL HAS ANYBODY BOTHERED TO COUNT THE SILVERWARE DALLAS AFTER WATCHING A 15 STOCK CRASH BELOW 2 SHAREHOLDERS IN TRAMMELL CROW REAL ESTATE INVESTORS MIGHT HAVE FELT THEY HAD EVERY REASON TO GET ALL THEY COULD FROM THE REALESTATE INVESTMENT TRUST BUT A GUEST REGISTER TOWARD THE END OF THE COMPANY'S AUG 31 ANNUAL MEETING PRESIDENT AND CHIEF EXECUTIVE OFFICER CHARLES WOLCOTT ANNOUNCED THAT SOMEONE HAD WALKED OFF WITH THE FIRM'S GUEST REGISTER LEAVING EXECUTIVES WITH NO RECORD OF ATTENDANCE PUZZLED COMPANY OFFICIALS STOOD AT THE DOOR WHEN THE MEETING ENDED COLLECTING NAME TAGS AND BUSINESS CARDS IT WAS A CURIOUS FINALE TO A TENSE MEETING SHAREHOLDERS FORMALLY APPROVED CHANGING THE FIRM'S NAME TO AMERICAN INDUSTRIAL PROPERTIES REIT AND COMPLETING A SPLIT FROM THE TRAMMELL CROW CO THE GIANT DALLAS DEVELOPER THAT LAUNCHED THE REIT IN 1985 BUT A MOVE TO ELIMINATE A REQUIREMENT TO LIQUIDATE THE REIT IN 1997 FAILED TO WIN THE NECESSARY 80 APPROVAL MR WOLCOTT DID WIN ENOUGH VOTES TO SIMPLY ADJOURN THE MEETING UNTIL OCT 1 AND AN EVEN BIGGER VICTORY WAS AHEAD THE REGISTER WAS SUBSEQUENTLY MAILED IN ANONYMOUSLY WITH A NOTE SAYING IT HAD BEEN PICKED UP BY MISTAKE 9312270047 930922 TEXAS JOURNAL VENTURE CAPITAL WHERE THE MONEY WENT COMPILED BY MICHAEL TOTTY TOTAL FUNDING OF EARLYSTAGE TEXAS VENTURES MORE THAN DOUBLED LAST YEAR TO 693 MILLION FROM 285 MILLION IN 1991 ENDING THREE YEARS OF STEEP DECLINES BUT THE TURNAROUND MAY HAVE BEEN SHORTLIVED FUNDING IN THIS YEAR'S FIRST HALF TOTALED JUST 138 MILLION HERE ARE THE 10 LARGEST VENTURECAPITAL FINANCINGS OF EARLYSTAGE TEXAS BUSINESSES FROM JAN 1 1992 TO MAY 1 1993 SOURCES EQUUS INVESTMENTS HOUSTON SPROUT GROUP NEW YORK OLYMPUS PRIVATE PLACEMENT FUND STAMFORD CONN WILLIAM BLAIR VENTURE PARTNERS CHICAGO WEISS PECK & GREER NEW YORK REGIONAL FINANCIAL SERVICES NEW CANAAN CONN JOHN HANCOCK VENTURE CAPITAL BOSTON AND VIRGINIA RETIREMENT SYSTEM RICHMOND VA SOURCES GRYPHON VENTURES II BOSTON AND TRAVELERS COS HARTFORD CONN 9312270031 930908 TEXAS JOURNAL WINNERS & LOSERS ARLINGTON THE MICHIGAN SUPREME COURT WON'T HEAR AN APPEAL BY YPSILANTI TOWNSHIP MICH PROTESTING GENERAL MOTORS' DECISION TO CONSOLIDATE PRODUCTION OF LARGE REARWHEEL DRIVE AUTOMOBILES IN GM'S ARLINGTON PLANT BRYAN COLLEGE STATION AND WACO TEXAS TGV CORP CHANGED ITS PLANS AND SAID THE TOWNS WILL BE INCLUDED ON A NEW ROUTE FOR THE PROPOSED BULLET TRAIN UNMARRIED AUSTINITES THE CITY COUNCIL APPROVED A PLAN TO EXTEND HEALTHINSURANCE COVERAGE TO LIVEIN LOVERS OF AUSTIN'S CITY EMPLOYEES WHETHER THEY ARE OF THE SAME OR OPPOSITE GENDER FORT WORTH PAKISTAN CANCELED MOST OF ITS ORDER OF 71 F16 FIGHTER JETS MAKING MORE LAYOFFS LIKELY AT LOCKHEED'S FORT WORTH FACILITY FUTURE COMMUNICATIONS INC NASDAQ SUSPENDED THE HIGHFLIER'S STOCK FROM TRADING WHILE IT DETERMINES WHETHER THE DALLAS CABLETELEVISION CONCERN COMPLIES WITH LISTING STANDARDS KAY BAILEY HUTCHISON THE US SENATOR WAS SUBPOENAED TO APPEAR BEFORE A TRAVIS COUNTY GRAND JURY LOOKING INTO ALLEGATIONS THAT SHE USED STATE WORKERS AND EQUIPMENT FOR PERSONAL AND POLITICAL PURPOSES WHEN SHE WAS STATE TREASURER SHE DENIES THE ALLEGATIONS 9312270026 930915 TEXAS JOURNAL SOUND OF HARMONY REPLACES DISCORD IN CITIES' CHAMBERS MIDLAND ODESSA BURY RIVALRY AS HARD ECONOMIC TIMES BRING NEIGHBORS TOGETHER BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL THE BERLIN WALL HAS FALLEN THE SOVIET UNION HAS WARMED TO CAPITALISM AND THE MIDLAND AND ODESSA CHAMBERS OF COMMERCE ARE WORKING TOGETHER IT USED TO BE THAT THE RIVAL CITY CHAMBERS DIDN'T TALK UNLESS A LOCAL UTILITY BROKERED A MEETING AND EVEN THEN THEY MET ON NEUTRAL GROUND BETWEEN THE TWO CITIES LONGTIME HIGHSCHOOL FOOTBALL RIVALS THE TWO NEIGHBORING CITIES ALSO HAD A COMPETITION GOING FOR NEW BUSINESSES CONVENTIONS AND STATUS SO INTENSE WAS THE RIVALRY THAT SOME PEOPLE IN OILRICH MIDLAND ARE STILL SMARTING FROM THE UNIVERSITY OF TEXAS' TWODECADEOLD DECISION TO LOCATE ITS PERMIAN BASIN BRANCH IN LESSPROSPEROUS ODESSA NOW FINALLY YOUNGER BUSINESS LEADERS ARE SPEARHEADING A NEW ERA OF COOPERATION IN THE PAST YEAR THE TWO CITIES HAVE WORKED TOGETHER ON A BUYLOCAL CAMPAIGN AS WELL AS A TRADEBOOSTING TRIP TO MEXICO AS IN MANY ODD ALLIANCES TOUGH TIMES HELPED BRING THE RIVALS TOGETHER A DRIVING FORCE WAS THE DOWNTURN IN THE ECONOMY SAYS MIKE GEORGE THE ODESSA CHAMBER'S CHIEF EXECUTIVE THE CITIES SIMPLY DECIDED THEY COULD NO LONGER SQUANDER PRECIOUS RESOURCES BY BUILDING A WALL BETWEEN THEIR ECONOMICDEVELOPMENT AGENCIES IT WASN'T EASY AT FIRST I FELT LIKE THE ARABS AND THE ISRAELIS NEGOTIATING THE SHAPE OF THE TABLE SAYS JANNA KING WHO RECENTLY LEFT HER POST AS MIDLAND CHAMBER PRESIDENT MS KING SOON BEGAN TALKING NEARLY EVERY DAY WITH MR GEORGE THEY ALSO MET REGULARLY WITHOUT BENEFIT OF A MEDIATOR THE TWO CITIES HAVE EVEN TAKEN THE ULTIMATE STEP OF AGREEING TO BE LISTED TOGETHER IN THE 1990 CENSUS AS A STANDARD METROPOLITAN STATISTICAL AREA A MOVE BOTH CITIES BELIEVE WILL INCREASE THEIR CLOUT WITH RETAILERS CONSIDERING NEW MARKETS SINGLY WE'D EACH BE SMALLER THAN 130000 PEOPLE SAYS CHUCK COWELL CHAIRMAN OF MIDLAND'S CHAMBER OF COMMERCE TOGETHER WE'RE LARGER THAN LUBBOCK AMARILLO AND ABILENE THE THAW HAS COME SO FAR THAT MIDLAND'S FOREMOST BUSINESS REPRESENTATIVE MS KING IS ENGAGED TO MARRY AN EXECUTIVE OF AN ODESSA COMPANY THOUGH THE HAPPY COUPLE IS MOVING TO TULSA OKLA MS KING WILL STAY ON AS AN OUTOFSTATE CONSULTANT FOR THE CHAMBERS' JOINT EFFORT TO ESTABLISH A TRADE CORRIDOR TO MEXICO 9312230188 931223 INTERNATIONAL CHINA AND VIETNAM SAID TO REACH AGREEMENT ON DISPUTED ISLANDS BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING CHINA AND VIETNAM HAVE AGREED TO SHELVE THEIR DISPUTE OVER OWNERSHIP OF THE SPRATLY ISLANDS IN AN IMPORTANT STEP TOWARD ELIMINATING A SOURCE OF CONFLICT BETWEEN THEM BEIJINGBASED DIPLOMATS AND CHINESE OFFICIALS SAID CHINESE COMMUNIST PARTY GENERAL SECRETARY JIANG ZEMIN AND VIETNAMESE PRESIDENT GENERAL LE DUC ANH REACHED A VERBAL AGREEMENT ON THE ISSUE DURING GENERAL ANH'S VISIT TO BEIJING EARLY LAST MONTH A CHINESE OFFICIAL SAID SINCE 1990 CHINA HAS SOUGHT SIMILAR ARRANGEMENTS WITH OTHER COUNTRIES WHICH LAY CLAIM TO THE STRATEGIC AND POTENTIALLY OILRICH ARCHIPELAGO IN THE SOUTH CHINA SEA THE AGREEMENT IS SIGNIFICANT BECAUSE AMONG THE SIX NATIONS INVOLVED CHINA AND VIETNAM HAVE THE MOST EXTENSIVE CLAIMS AND HAVE TENDED TO TAKE THE MOST AGGRESSIVE STANCES WITH THIS AGREEMENT CHINA IS TRYING HARD TO PROJECT A MORE POSITIVE IMAGE TOWARD SOUTHEAST ASIA SAYS ONE REGIONAL DEFENSE ANALYST STILL SOME ANALYSTS SAY SUCH AN ORAL AGREEMENT MIGHT NOT AMOUNT TO MUCH GIVEN THE HISTORY OF CLASHES BETWEEN THE TWO COUNTRIES CHINA'S ACTIONS HAVEN'T ALWAYS MATCHED ITS WORDS IN OTHER DEALINGS INVOLVING THE SPRATLYS EVEN AS IT CALLED FOR SHELVING THE SOVEREIGNTY ISSUE AND JOINTLY DEVELOPING THE REGION BEIJING HAS TAKEN ACTIONS CONSIDERED AGGRESSIVE BY OTHER NATIONS LAST YEAR IT PASSED A LAW CLAIMING MOST OF THE SOUTH CHINA SEA AND LANDED TROOPS ON A REEF CLAIMED BY VIETNAM SOME CHINESE AND VIETNAMESE OFFICIALS DENY KNOWLEDGE OF ANY AGREEMENT BEING REACHED OVER THE SPRATLYS DURING THE RECENT VISIT BUT THE CHINESE OFFICIAL SAID THE AGREEMENT WAS MADE BETWEEN TWO SOCIALIST PARTIES AND THERE'S NO BENEFIT IN ANNOUNCING IT DIPLOMATS IN BEIJING CONFIRMED THAT MR JIANG AND GENERAL ANH HAD REACHED SUCH AN ORAL UNDERSTANDING A WESTERN DIPLOMAT SAID THIS TOOK PLACE DURING A PRIVATE MEETING FOLLOWING THE TWO LEADERS' FORMAL ONE HE ADDED THAT THE TWO SIDES AGREED TO SHELVE THE SOVEREIGNTY DISPUTE FOR 50 YEARS AND JOINTLY INVEST IN THE SPRATLYS AND DIVIDE ANY PROFITS ON A 5050 BASIS BUT OTHERS SAID SUCH A DETAILED AGREEMENT WAS UNLIKELY THE SPRATLYS A GROUP OF BARREN ISLANDS AND CORAL REEFS HAVE BEEN A SOURCE OF FRICTION IN THE REGION SINCE EARLY THIS CENTURY BESIDES CHINA AND VIETNAM COUNTRIES CLAIMING SOVEREIGNTY OVER PART OR ALL OF THE ISLANDS OR THE SEA AROUND THEM INCLUDE MALAYSIA THE PHILIPPINES BRUNEI AND TAIWAN TWO MAIN CLASHES HAVE TAKEN PLACE IN THE AREA BOTH INVOLVING CHINA AND VIETNAM IN 1974 A CHINESE AIR AND NAVAL OPERATION OUSTED A SOUTH VIETNAMESE GARRISON ON PARACEL ISLAND IN 1988 THE CHINESE SANK THREE VIETNAMESE TRANSPORT SHIPS AND KILLED 72 SEAMEN IN A BRIEF NAVAL SKIRMISH FOR CHINA AND VIETNAM THESE CLASHES CONSTITUTED PART OF A BROADER HISTORY OF CONFLICT INCLUDING A 1979 BORDER CLASH AND A MORE RECENT DISAGREEMENT OVER CHINA'S PLAN TO EXPLORE FOR OIL IN AN AREA CLAIMED BY VIETNAM FOLLOWING THE RESTORATION OF FORMAL TIES IN NOVEMBER 1991 CHINA AND VIETNAM HAVE SLOWLY BEGUN TO IMPROVE RELATIONS THEY SIGNED A FORMAL AGREEMENT IN OCTOBER TO RESOLVE THEIR TERRITORIAL DISPUTES THROUGH NEGOTIATIONS THE LATEST AGREEMENT COULD ALSO IMPROVE CHINA'S RELATIONS WITH THE REST OF SOUTHEAST ASIA CHINA HAS ALREADY REACHED SIMILAR UNDERSTANDINGS WITH MALAYSIA AND THE PHILIPPINES TO SHELVE THE SPRATLYS SOVEREIGNTY DISPUTE ONE CHINESE FOREIGN POLICY ANALYST SAID THE AGREEMENT WITH VIETNAM CONSTITUTES PART OF CHINA'S EFFORTS TO IMPROVE RELATIONS FURTHER WITH ITS NEIGHBORS MANY OF THEM FEAR THAT BEIJING HARBORS EXPANSIONIST AMBITIONS AS ITS ECONOMY BOOMS AND AS THE US PRESENCE IN THE REGION WANES THE CHINESE LEADERS FEEL THEY MUST BE CAREFUL HE SAID THEY CAN'T STIR UP DOUBT IN ANYONE 9312230187 931223 WHO'S NEWS HAROLD'S STORES INC HAROLD'S STORES INC NORMAN OKLA ROBERT BROOKS CULLUM JR 45YEAROLD PRESIDENT OF FAIRWAY CAPITAL CO OF DALLAS WAS NAMED TO THE BOARD OF THIS SPECIALTY APPAREL STORE INCREASING THE BOARD'S SIZE TO 11 9312230185 931223 WHO'S NEWS SAFECARD SERVICES INC SAFECARD SERVICES INC CHEYENNE WYO EUGENE MILLER 68YEAROLD RETIRED VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF USG CORP WAS NAMED TO THE NEW POSITION OF VICE CHAIRMAN OF THIS CREDIT CARD SERVICES ORGANIZATION MR MILLER WAS NAMED TO THE BOARD IN FEBRUARY 9312230184 931223 WHO'S NEWS QUAKER STATE CORP QUAKER STATE CORP OIL CITY PA LAUREL CUTLER WAS NAMED A DIRECTOR EXPANDING THE BOARD TO 11 MEMBERS MS CUTLER 67 YEARS OLD IS A DIRECTOR AND WORLDWIDE DIRECTOR OF MARKETING PLANNING AT FOOTE CONE & BELDING COMMUNICATIONS INC QUAKER STATE MAKES MOTOR OIL AND LUBRICANTS AMONG OTHER PRODUCTS 9312230183 931223 INTERNATIONAL SOUTH AFRICAN PRICE INDEX RISES JOHANNESBURG SOUTH AFRICA'S CONSUMER PRICE INDEX ROSE 92 IN NOVEMBER FROM A YEAR EARLIER THE GOVERNMENT'S CENTRAL STATISTICAL SERVICES SAID THE INDEX ROSE TO 1483 POINTS IN NOVEMBER FROM 1357 POINTS A YEAR EARLIER NOVEMBER'S FIGURE WAS UP 02 FROM OCTOBER'S READING OF 1479 OCTOBER'S YEARONYEAR INCREASE WAS 94 THE FOOD INDEX WAS UP 39 TO 1634 IN NOVEMBER FROM 1572 A YEAR EARLIER AND UP 1 FROM OCTOBER'S FIGURE OF 1622 9312230182 931223 SEC CLEARS LIMITS ON NASDAQ'S SOES MAY FACE LAWSUIT BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION APPROVED LIMITS ON THE USE OF THE NASDAQ STOCK MARKET'S SMALL ORDER EXECUTION SYSTEM AND DREW AN IMMEDIATE THREAT OF A CHALLENGE THE SYSTEM KNOWN AS SOES WAS INTENDED TO GIVE RETAIL INVESTORS AUTOMATIC EXECUTION OF THEIR ORDERS IN ORDER TO SIDESTEP THE TELEPHONIC LOGJAMS THAT COULD CURTAIL THEIR ACCESS TO MARKETS DURING VOLATILE PERIODS BUT THE SYSTEM PROVIDED AN EASY ROUTE FOR ACTIVE PLAYERS IN THE MARKET TO PROFIT FROM SMALL PRICE CHANGES THESE PLAYERS INCLUDE SHORTSELLERS INVESTORS WHO SELL BORROWED SECURITIES IN HOPES OF REPLACING THEM AT LOWER PRICES AND POCKETING THE DIFFERENCE AND DAY TRADERS INVESTORS WHO OPEN AND CLOSE MARKET POSITIONS IN THE SAME TRADING DAY THE HEAVY USAGE OF SOES BY SUCH ACTIVISTS PROMPTED THE SEC TO APPROVE A CUT IN THE MAXIMUM ORDER SIZE TO 500 SHARES FROM 1000 THE COMMISSION AT THE REQUEST OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ALSO BARRED THE USE OF SOES FOR SHORT SALES THE COMMISSION WHICH COULD HAVE MADE THE CHANGES TAKE EFFECT IMMEDIATELY DELAYED THE EFFECTIVE DATE TO JAN 7 TO GIVE CRITICS OF THE CHANGES TIME TO FILE CHALLENGES A POTENTIAL CHALLENGER STEPPED FORWARD SHORTLY AFTER THE SEC MEETING THE COMMISSION'S LAST OF THE YEAR ADJOURNED YESTERDAY ALLTECH INVESTMENT GROUP A DEEPDISCOUNT RETAIL BROKER BASED IN SUFFERN NY SAID IT WILL ASK THE FEDERAL APPEALS COURT IN WASHINGTON TO SET ASIDE THE SEC DECISION ALLTECH HAS BEEN AT WAR WITH THE SEC AND THE NASD OVER THE SOES SYSTEM FOR SEVERAL YEARS EARLIER THIS YEAR THE FIRM WENT TO FEDERAL COURT AND SUCCESSFULLY CHALLENGED THE RULES BARRING PROFESSIONAL TRADERS FROM USING SOES FOR THEIR OWN ACCOUNTS IN 1989 THE FIRM PAID A 40000 FINE TO SETTLE NASD ALLEGATIONS OF SOES ABUSES WE USE SOES TO EXECUTE TRADES FOR OUR CUSTOMERS BECAUSE THAT GIVES THEM THE BEST CHANCE OF GETTING THEIR TRADES EXECUTED AT THE PRICE ADVERTISED BY THE MARKET MAKER ALLTECH CHAIRMAN HARVEY HOUTKIN SAID IN A STATEMENT ALLTECH BELIEVES THAT THE SEC HAS NEVER ADEQUATELY DEMONSTRATED THE NEED FOR ANY RESTRICTIONS ON THE USE OF SOES THE LIMITATIONS APPROVED BY THE SEC ARE TO BE IN PLACE FOR ONE YEAR IN THE INTERIM THE NASD SAID IT EXPECTS TO ASK THE SEC TO APPROVE A NEW SYSTEM FOR SMALLORDER EXECUTION 9312230181 931223 ECONOMY EFFECT OF NEW FASB RULE ON BENEFITS FOR RETIREES IS LESS THAN EXPECTED BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BUSINESSES HAVE BEEN HURT LESS THAN EXPECTED BY A NEW ACCOUNTING RULE ON RETIREES' MEDICAL BENEFITS BUT MOST STILL PLAN TO CUT THOSE BENEFITS FURTHER A SURVEY OF 322 MAJOR CONCERNS FOUND THE RULE ISSUED BY THE FINANCIAL ACCOUNTING STANDARDS BOARD IN 1990 REQUIRES COMPANIES TO SET UP A RESERVE FOR SUCH BENEFITS NO LATER THAN THIS YEAR RETIREES' MEDICAL BENEFITS PREVIOUSLY WERE ACCOUNTED FOR AS PAID EACH YEAR THE SURVEY CONDUCTED BY BENEFIT CONSULTANTS TOWERS PERRIN SHOWED THAT THE REQUIRED RESERVES ONLY HAVE REDUCED ANNUAL PRETAX PROFITS AN AVERAGE OF 46 AND INCREASED PAYROLL COSTS BY A YEARLY AVERAGE OF 3 COMPANIES RESPONDING TO A 1992 TOWERS PERRIN SURVEY SAID THEY EXPECTED THE ACCOUNTING RULE TO SLASH PRETAX PROFITS 10 AND BOOST PAYROLL COSTS 6 THE BENEFITS FIRM NOTED RICHARD OSTUW TOWERS PERRIN'S CHIEF ACTUARY FOR HEALTH BENEFITS SAID THAT RECENT MEDICALBENEFIT REDUCTIONS INCLUDING INCREASED COSTSHARING BY RETIREES HAVE EASED THE NEW RULE'S PAIN SLOWER GROWTH IN OVERALL MEDICAL COSTS AND MORE OPTIMISTIC ASSUMPTIONS ABOUT LONGTERM HEALTH COSTS HAVE ALSO HELPED HE ADDED ABOUT 88 OF COMPANIES PARTICIPATING IN THE LATEST TOWERS PERRIN SURVEY SAID THEY RECENTLY REDUCED RETIREES' MEDICAL BENEFITS PRIMERICA CORP UNISYS CORP GILLETTE CO PROCTER & GAMBLE CO AND CATERPILLAR INC ARE AMONG THE MAJOR CORPORATIONS THAT HAVE DONE THAT LATELY YET DESPITE THE UNEXPECTEDLY SMALL FINANCIAL IMPACT OF THE ACCOUNTING RULE MOST COMPANIES QUERIED BY TOWERS PERRIN SAID THEY PLAN TO CONTINUE CUTTING MEDICAL BENEFITS FOR RETIREES AMONG 249 RESPONDENTS PLANNING FURTHER MEDICALBENEFIT REDUCTIONS FOR CURRENT EMPLOYEES 92 SAID THEY WILL MAKE CHANGES IN BENEFITS FOR FUTURE RETIREES MR OSTUW REPORTED BALL CORP FOR EXAMPLE IS KEEPING A CLOSE EYE ON RETIREES' MEDICAL BENEFITS R DAVID HOOVER SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FOR THE MUNCIE IND GLASS CONTAINER MAKER ESTIMATED THAT THE ACCOUNTING RULE WILL REDUCE 1993 PROFITS BY 3 MILLION THAT'S ABOUT 1 MILLION LESS THAN THE COMPANY HAD EXPECTED WE'VE ALREADY TAKEN STEPS TO KEEP OUR MEDICAL COSTS DOWN FOR UNION AND NONUNION RETIREES MR HOOVER SAID BALL NEVERTHELESS PLANS TO CONTINUE TO KEEP AN EYE ON SUCH EXPENSES BEYOND ITS CURRENT PROGRAMS HE ADDED IT'S A WISE THING EVEN THOUGH COSTS MAY NOT BE INCREASING AS QUICKLY AS EXPECTED TO KEEP A REIN ON RETIREES' MEDICAL COSTS OR IT CAN QUICKLY ESCALATE TO A BIG NUMBER A YEAR AGO BALL BEGAN TO OFFER NONUNION RETIREES UNDER 65 AN INSURANCE PLAN WITH IMPROVED MEDICAL BENEFITS UNDER THE PLAN RETIREES PAY 80 OF THE INSURANCE PREMIUM AND THE COMPANY 20 THE PREVIOUS PLAN PROVIDED MINIMAL BENEFITS PAID FOR BY BALL SO FAR ABOUT 100 EARLY RETIREES HAVE OPTED FOR THE NEW PLAN MR HOOVER SAID IT HELPS US REDUCE COSTS BY ENCOURAGING MORE EMPLOYEES TO RETIRE EARLY OVER THE YEARS WE HOPE TO SAVE MILLIONS OF DOLLARS IN PERSONNEL COSTS DESPITE THE LOWER AVERAGE COSTS RESULTING FROM THE FASB ACCOUNTING RULE SOME SURVEYED COMPANIES REPORTED EXPENSE LEVELS FAR HIGHER THAN AVERAGE MR OSTUW SAID FOR A FEW LARGELY INVOLVED IN HEAVY MANUFACTURING ANNUAL ACCOUNTING EXPENSES FOR RETIREES' MEDICAL BENEFITS ACCOUNTED FOR 70 TO 100 OF PRETAX PROFITS AND PAYROLL COSTS ABOUT 25 OF RESPONDENTS SAID ANNUAL ACCOUNTINGEXPENSE LEVELS TOPPED 12 OF PRETAX PROFITS AND AMOUNTED TO MORE THAN 5 OF PAYROLL COSTS 9312230180 931223 ENHANCED ELECTRONICS CORP DALLAS ENHANCED ELECTRONICS CORP SAID IT HAS ACQUIRED ADVANCED PC PRODUCTS INC A PRIVATELABEL ASSEMBLER OF COMPUTERS AND ACCESSORIES TERMS WEREN'T DISCLOSED 9312230179 931223 BETTER TO RECEIVE HOW CHILDREN DECIDE ON GIFTS THEY WANT AND PLOT TO GET THEM AFTER ALL THE TV WATCHING PLAYGROUND TALK CROWNS THE COOL AND THE DORKY' ART OF MANIPULATING A PARENT BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS THIS TIME OF YEAR EVERYTHING THAT SEEMS IMPORTANT TO 10YEAROLD DAN CHENOWETH CAN BE FOUND ROW AFTER COLORFUL ROW IN A SUBURBAN TOY STORE THAT'S IT HE SAYS SPOTTING A BOX OF ROLLERBLADES HIGH IN A DISPLAY TWICE HIS HEIGHT THAT'S THE ONE I WANT THE AIRMAX 5000 WITH THE DUALBLADE SYSTEM THEN HE DARTS PAST A DISPLAY OF TALKING BARNEY DOLLS HE'S A DORK HE HUFFS AND XMEN FIGURES AND GLIDES TO A STOP AT THE SEGA GAME DISPLAY THERE HE JOINS A DOZEN OF HIS PEERS IN SILENT TRIBUTE NOSES PRESSED TO THE GLASS CASE IT'S TOTALLY BAD HE SAYS EXPRESSING HIGH PRAISE FOR THE AMERICAN TOY BUSINESS WHICH GENERATES TWOTHIRDS OF ITS SALES IN THE LAST THREE MONTHS OF THE YEAR THE YOUNG EXPERT'S OPINIONS ARE CRITICAL HIS DECISIONS CRYSTALLIZING MONTHS OF TV WATCHING WINDOWSHOPPING AND STORYSWAPPING WITH FRIENDS HAVE STRONGLY INFLUENCED HOW HIS FATHER JEFF CHENOWETH SPENT THE 250 HE BUDGETED FOR HIS SON'S CHRISTMAS COLLECTIVELY THE 28 MILLION AMERICANS AGED SIX TO 13 WILL GET MORE THAN 10 BILLION IN TOYS THIS CHRISTMAS SETTING ANOTHER RECORD FOR AN INDUSTRY THAT HASN'T SUFFERED A SLUMP IN 30 YEARS THEY WILL GET SEGA GAMES TO SOME NINTENDO SEEMS TO HAVE LOST ITS COOL AND ROLLERBLADES AND GAK AN OOZING BIT OF SLIME THAT CHILDREN LOVE FOR THE RUDE NOISES IT MAKES ALSO HOT WILL BE CLOTHES PARTICULARLY GIRBAUD JEANS OR ANYTHING WORN ON THE TV SHOW 90210 MICHAEL JORDAN THOUGH HE HAS LEFT BASKETBALL STILL COMMANDS RESPECT FOR HIS ATHLETIC SHOES IT IS THE CHRISTMAS OF THE SONY CD PLAYER TIMBERLAND BOOT AND MAGIC MARVIN WHICH SEVENYEAROLD BONNIE PROCACCINI CONFIDES YOU CAN SHAKE AND FIND OUT WHETHER YOU WILL HAVE A BOYFRIEND WHILE ADULTS HAVE BECOME MORE VALUECONSCIOUS IN THE 1990S CHILDREN HAVEN'T LEFT THE 1980S ONE RECENT STUDY SHOWS THAT ALTHOUGH 70 OF ADULTS ARE NOW BIG BUYERS OF PRIVATELABEL STORE BRANDS ONLY 7 OF THE CHILDREN WOULD EVEN CONSIDER THE STUFF THEY WANT BRANDNAME GIFTS AND DESIGNER CLOTHES BRANDS OFFER CHILDREN A COMMON COMMERCIAL LANGUAGE SOMETHING IDENTIFYING THEM AS PART OF THE GROUP NONBRAND ITEMS OR THOSE AT DISCOUNT STORES ARE SUSPECT THINGS THAT AREN'T ON SALE ARE BETTER NINEYEAROLD SARA CAMPBELL BELIEVES SALE ITEMS ARE ON SALE BECAUSE PEOPLE WANT TO GET RID OF THEM SELINA GUBER PRESIDENT OF CHILDREN'S MARKET RESEARCH INC IN NEW YORK SAYS CHILDREN TELL HER THAT GENERICGOODS AISLES IN SUPERMARKETS SMELL BAD RESEARCH AT THE UNIVERSITY OF TEXAS CHILD AND FAMILY LAB IN AUSTIN SHOWS THAT CHILDREN BEGIN SHOWING BRAND PREFERENCES AT ABOUT 23 MONTHS A TWOYEAROLD MAY NOT BE ABLE TO FORM A SENTENCE BUT CAN SPOT MCDONALD'S SAYS CHERI STERMAN A CHILDDEVELOPMENT EXPERT AT BINNEY & SMITH INC THE MAKER OF CRAYOLA CRAYONS AND WHY SHOULDN'T THEY BE BRANDCONSCIOUS THEY ARE JUST AS RICH AS THEIR PARENTS WERE IN THE HEADIEST YUPPIE DAYS SPENDING ON KIDS HAS GROWN ABOUT 20 A YEAR OVER THE PAST DECADE EVEN AS HOUSEHOLD INCOME HAS STAGNATED PARENTS HAVE TURNED OVER MORE OF THEIR INCOME TO THEIR KIDS IN PART BECAUSE OF GUILT OVER DWINDLING FAMILY TIME AND PERHAPS GROWING PESSIMISM ABOUT THE KIDS' FUTURES PEOPLE WANT THEIR CHILDREN TO HAVE A BETTER LIFE AND BE EXPOSED TO GOOD THINGS SAYS GAIL RIBALTA A MARKETING MANAGER IN THE TOY DIVISION OF TEXAS INSTRUMENTS INC IT GETS BACK TO MAKING IT AS GOOD AS YOU CAN WHILE YOU STILL HAVE THINGS IN YOUR CONTROL INSIDE ROSEMONT ELEMENTARY DAN CHENOWETH'S SCHOOL IN DALLAS'S OAK CLIFF NEIGHBORHOOD TALKING ABOUT CHRISTMAS PRESENTS HAS BEEN THE MAIN GAME FOR WEEKS IT'S ALSO HOW DECISIONS ABOUT THOSE PRESENTS ARE SHAPED WHAT HAPPENED HERE REPEATED ALL ACROSS THE COUNTRY TRANSLATES INTO SUCCESS OR FAILURE FOR SCORES OF MANUFACTURERS AND RETAILERS AND TO UNDERSTAND THESE KIDS AND THEIR DECISIONMAKING PROCESS IS TO UNDERSTAND WHY ON A RECENT CRISP DAY HERE THE PLAYGROUND CONVERSATION QUICKLY DETERIORATED INTO SOMETHING APPROACHING PERFORMANCE ART WITH RECITATIONS OF THE LATEST ADVERTISING JINGLES AND CHILDREN WAILING ABOUT IN MOCK BATTLES AGAINST SEGA MONSTERS TELEVISION'S INFLUENCE IS OF COURSE ENORMOUS MOST OF THE CHILDREN SAID THEY SIMPLY WOULDN'T CONSIDER CHRISTMAS TOYS THAT AREN'T ADVERTISED THEY ASSUME THAT IF SOMETHING ISN'T GOOD ENOUGH TO GET ON TV IT'S NO GOOD AT ALL IF I SEE IT ON TV I KNOW I WANT IT COMMENTED WILLIE MARSHALL A NINEYEAROLD WHOSE GIFT LIST INCLUDES GIRBAUD JEANS A SEGA MACHINE AND JORDAN SHOES THE POWER OF TV IS ESPECIALLY CLEAR IN THE MARKETING OF VIDEO GAMES THIS CHRISTMAS'S MOST POPULAR GIFT MANY CHILDREN SAY SEGA FROM JAPAN'S SEGA ENTERPRISES LTD HAS WON THE BATTLE WITH COMMERCIALS THAT CLAIM TECHNICAL SUPERIORITY OVER ITS RIVAL MADE BY NINTENDO CO AND THEY HAVE HOMED IN ON THE MESSAGE DRILLED IN WITH ALL THE SUBTLETY OF A MORTAL KOMBAT MATCH THAT OWNING A SEGA SYSTEM MAKES CHILDREN POPULAR CHILDREN CAN RECITE NEARLY FRAME BY FRAME A SEGA COMMERCIAL FEATURING A CHILD WHO SUDDENLY BECOMES POPULAR AFTER HIS PARENTS BUY A SEGA GAME BY THE END OF THE COMMERCIAL DOZENS OF KIDS ARE JAMMED OUTSIDE THE FAMILY'S FRONT DOOR HOPING TO MEET THEIR NEW SEGA FRIEND RIGHT NOW NINTENDO'S NOT SO THRILLING SAYS DAN CHENOWETH WHO PRESSED HIS FATHER FOR A SEGA FOR CHRISTMAS PEOPLE HAVE GOTTEN TIRED OF IT THEY HAVE ALL THESE COMMERCIALS THAT SAY YOU'RE REAL COOL IF YOU USE SEGA AND TWO WEEKS BEFORE CHRISTMAS MR CHENOWETH A SINGLE PARENT WHO DESIGNS STAINEDGLASS FIXTURES WAS WAVERING ON THE SEGA AFTER SEEING A STORE DISPLAY IT WAS UNBELIEVABLY DISGUSTING HE SAID DESCRIBING A SEGA BATTLE THAT LEFT ONE COMBATANT HEADLESS AND SPEWING BLOOD IT BLEW ME AWAY YET EXPERTS SAY CHILDREN HAVE GROWN INCREASINGLY SOPHISTICATED ABOUT TV COMMERCIALS AND THEIR CLAIMS I LIKE TOYS WHEN I SEE THEM ON TV BUT WHEN I GET THEM HOME THEY DON'T WORK SARA CAMPBELL OBSERVES JAMES U MCNEAL A TEXAS A&M UNIVERSITY PROFESSOR AND CHILDMARKETING EXPERT SAYS THE INFLUENCE OF TV HAS SLIPPED A NOTCH IN RECENT YEARS AS OTHER MARKETING TECHNIQUES HAVE FLOURISHED TV WOULD HAVE BEEN STRONGER FIVE YEARS AGO THAN IT IS TODAY HE SAYS CHILDREN'S MEMBERSHIP CLUBS AND CATALOGMARKETING PROGRAMS HAVE STOLEN SOME OF THEIR ATTENTION BUT FOR CHILDREN THE MOST POWERFUL MARKETING TACTIC IS WORD OF MOUTH PARTICULARLY AMID CHRISTMASTIME PRESSURE TO COLLECT THE COOLEST THINGS AT THIS LEVEL PEER PRESSURE IS SO INTENSE IT'S STRONGER THAN FAMILY STRONGER EVEN THAN THEIR OWN INTERNAL SMARTS BINNEY & SMITH'S MS STERMAN SAYS AT ROSEMONT WORD OF MOUTH COMES IN THE FORM OF BRAGGING AS CHILDREN SWAP STORIES ABOUT WHAT THEY HAVE AND HOW WELL IT WORKS AND THEY ALL ADMIT WHAT ADULTS WOULD SURELY DENY WHAT IS MOST IMPORTANT IS FITTING IN WHEN I GO TO BIRTHDAY PARTIES I WATCH WHAT THE OTHER KIDS ARE WEARING AND I TAKE NOTES WILLIE MARSHALL SAYS AT CHRISTMASTIME NOBODY TAKES A STAND ON A TOY UNTIL IT IS CLEAR WHERE IT SITS WITH THE OTHER KIDS AT ONE POINT DAN CHENOWETH TALKED ABOUT WANTING GRAPE ESCAPE A BOARD GAME BUT AFTER HIS FRIENDS RIDICULED IT AS BEING FOR YOUNG KIDS HE DROPPED IT FROM HIS LIST NOBODY WANTS SOMETHING THAT'S REALLY DORKY HE SAYS ON THE POSITIVE SIDE SARA CAMPBELL GOT A THUMBSUP FROM A FRIEND IN THE LUNCHROOM ON A TOY LAMP FROM WALT DISNEY CO'S ALADDIN MOVIE IT'S COOL SHE REPORTS ALL YOU HAVE TO DO IS SHAKE IT THE LAMP CLEARLY BENEFITS FROM THE POWER OF DISNEY AS A BRAND NAME THE TIME FOR MAKING DECISIONS PASSED ROSEMONT KIDS HAD DRAWN UP THEIR LISTS AND GIVEN THEM TO THEIR PARENTS ONE PUPIL LATOSHA WATKINS GINNED UP AN ELABORATE LIST WITH CODE LETTERS RANKING TOYS ACCORDING TO DESIRABILITY THEN THE CHRISTMAS SEASON REALLY GOT SERIOUS THE TIME FOR LOBBYING HAD COME WILLIE MARSHALL FOR INSTANCE MADE SURE THAT HIS MOTHER KNEW WHICH TOYS HE WANTED BY POINTING THEM OUT TO HER WHEN THEY SHOWED UP ON TV AND HE HAS LEARNED TO INTERPRET HER RESPONSES IF SHE SAYS KEEP LIKING' I KNOW I'M GOING TO GET IT IF SHE JUST SAYS OH' THAT MEANS I'M NOT BONNIE PROCACCINI SAYS THAT WHEN IT GOT DOWN TO THE WIRE SHE KNEW TO BRING OUT THE PUPPYDOG EYES DAN CHENOWETH TRIED TO APPEAL TO PARENTAL GUILT I'LL SAY I SAW SOMETHING AT A FRIEND'S AND IT WAS REALLY COOL HE SAYS MY DAD UNDERSTANDS INDEED HE DOES IT'S LIKE A CHESS GAME MR CHENOWETH SAYS HE WATCHES EVERYTHING I DO HE'LL MANEUVER FOR POSITION WHILE HE MANEUVERS AROUND I'VE GOT TO ANSWER IN WAYS THAT WILL THROW HIM OFF KIM CAMPBELL SARA'S FATHER SAYS HE TOO HAS HAD TO BE ON GUARD RESPONDING TO COMMENTS SUCH AS IT SURE WOULD BE NICE IF I HAD CREATES HIGH HOPES AND CAN BOX YOU INTO GETTING THINGS YOU DIDN'T INTEND TO BUY WE'LL ACT LIKE WE'RE IGNORING THEM HE SAYS WE'LL GIVE THEM THE IMPRESSION THEY DON'T HAVE A SNOWBALL'S SHOT SARA IN RESPONSE MAINTAINS SHE IS NEVER FOOLED I KNOW MY PARENTS REALLY GOOD I'VE KNOWN THEM FOR NINE YEARS PARENTS UNDOUBTEDLY EXPERIENCE COMPLEX EMOTIONS AT THIS TIME OF YEAR THEY OFTEN ADMIT TO BUSTING THEIR BUDGETS AND BUYING THEIR CHILDREN THINGS THEY DON'T REALLY NEED THEY ALL REMEMBER YEARS LATER THE TOY THAT GOT AWAY FROM THEM IN MANY FAMILIES GUILT OVER WHAT THE CHILDREN DON'T HAVE OR CAN'T DO SEEMS AMPLIFIED DURING THE HOLIDAYS IN THE MIDDLECLASS CAMPBELL HOME HE IS A FAMILY COUNSELOR HIS WIFE NORA AN ADMINISTRATIVE ASSISTANT FOR THE RESOLUTION TRUST CORP MRS CAMPBELL WORRIES ABOUT THE KIDS BEING ISOLATED THEIR NEIGHBORHOOD HAS FEW OTHER CHILDREN AND THE CAMPBELL KIDS AREN'T FREE TO ROAM THE BLOCK BECAUSE OF HEAVY TRAFFIC ON A NEARBY STREET UNLESS THEY'RE AT CHURCH OR AT SCHOOL THEY'RE STUCK HERE MRS CAMPBELL SAYS AND ALTHOUGH SOME TOY PURCHASES CAN BE CHALKED UP TO WORRIES ABOUT THE CHILDREN GETTING BORED THE CAMPBELLS SAY THAT DOESN'T NECESSARILY MEAN THAT SARA OR HER BROTHER AND SISTER ARE CALLING THE FINANCIAL SHOTS CLEARLY WE'VE GOT THE PURSESTRINGS MR CAMPBELL SAYS BUT ON THE OTHER HAND EVERY PARENT WANTS TO GIVE THEIR CHILD WHAT THEY WANT WILLIE'S MOTHER DANUA A SINGLE PARENT WORKING PARTTIME AS A MAILROOM CLERK AND BEAUTICIAN VIEWS CHRISTMAS AS A WAY TO REWARD HER SON FOR SHUNNING THE DRUGS AND CRIME OF A ROUGH NEIGHBORHOOD WHEN PLANNING HER SPLURGE MS MARSHALL COMMENTED I'M DETERMINED TO GET WILLIE WHAT HE WANTS AND SHE IS PROUD THAT HER NINEYEAROLD WILL GET ALL HE ASKED FOR AND MORE ATHLETIC SHOES JEANS A BASKETBALL AND A VIDEOGAME MACHINE EVEN THOUGH SHE ACKNOWLEDGES THAT BUYING ALL OF THIS STRAINED HER BUDGET SPEAKING IN THE LIVING ROOM OF HER ONEBEDROOM APARTMENT SHE ADDED HIS FATHER HAS NEVER BEEN AROUND AND WILLIE DOESN'T LET PEOPLE GET CLOSE TO HIM HE DESERVES IT ALL HE'S A GOOD BOY JEFF CHENOWETH ALMOST RESENTS THE PARENTAL BAGGAGE THAT OFTEN ACCOMPANIES THE HOLIDAYS HE HAS BECOME LEERY OF TELEVISION'S INFLUENCE ON HIS SON HE BELIEVES THAT COMMERCIALS HAVE TAKEN AWAY CHILDREN'S DISCOVERY PROCESS BY TELLING THEM WHAT THEY NEED TO HAVE TO STAY COOL THE WAY CHRISTMAS HAS TURNED OUT IS REALLY SAD HE SAYS AT THE CHENOWETH HOME THE SHOWDOWN OVER SEGA EVOLVED INTO A LIFE AND DEATH STRUGGLE AS JEFF DESCRIBED IT FINALLY AFTER MUCH DEBATE MR CHENOWETH MADE HIS DECISION ON A SHOPPING TRIP LATE LAST WEEK HE CHOSE A CASSETTE AND COMPACTDISK PLAYER INSTEAD OF A SEGA FOR DAN AND HID THE STEREO INSIDE THEIR HOUSE I THINK HE'S GOING TO BE SURPRISED HE SAID THE NEXT DAY AT ROSEMONT DAN SHIMMIED UP A TREE IN A PLANTER NEAR THE SCHOOL'S FRONT DOOR ASKED FOR ONE LAST GUESS ABOUT WHAT CHRISTMAS WILL BRING THE 10YEAROLD SHRUGGED AND SMILED I THINK I'M GETTING A STEREO HE SAID 9312230178 931223 AAMES FINANCIAL'S UNIT OFFERING LOS ANGELES AAMES FINANCIAL CORP SAID ITS AAMES CAPITAL CORP UNIT COMPLETED A PUBLIC OFFERING OF 267 MILLION OF MORTGAGE PASSTHROUGH CERTIFICATES BACKED BY A POOL OF HOME MORTGAGES THE OFFERING IS THE FIRST COMPLETED UNDER A SHELF REGISTRATION COVERING 300 MILLION OF MORTGAGE PASSTHROUGH CERTIFICATES ISSUABLE IN SERIES 9312230177 931223 INTERNATIONAL DENMARK'S CONSUMER PRICE INDEX COPENHAGEN DENMARK'S CONSUMER PRICE INDEX ROSE 02 IN NOVEMBER FROM OCTOBER BRINGING THE YEARONYEAR INFLATION RATE TO 15 IN THE MONTH ACCORDING TO FIGURES RELEASED BY DANMARK STATISTIK THE DANISH NATIONAL STATISTICS AGENCY ACCORDING TO THE AGENCY THE SMALL INCREASE IN NOVEMBER'S CONSUMER PRICE INDEX COMPARED WITH OCTOBER WAS DUE TO AN INCREASE OF ABOUT 1 IN THE HOUSING RENTAL INDEX HOWEVER THE RISE IN HOUSING RENTALS WAS BALANCED OUT IN PART BY A DROP IN FOOD AND CLOTHING PRICES A SMALL DECLINE ALSO WAS RECORDED FOR OIL AND PETROL PRICES THE AGENCY SAID 9312230176 931223 RAMTRON ISSUES CONVERTS STOCK COLORADO SPRINGS COLO RAMTRON INTERNATIONAL CORP SAID IT RAISED 30 MILLION THROUGH A PRIVATE PLACEMENT OF PREFERRED STOCK AND THE CONVERSION OF DEBT THE SEMICONDUCTOR MAKER SAID IT COMPLETED A PRIVATE PLACEMENT WITH INSTITUTIONAL AND INDIVIDUAL INVESTORS OF 16 MILLION SHARES OF SERIES B CONVERTIBLE PREFERRED STOCK AT 9 A SHARE RAMTRON ALSO SAID IT CONVERTED 148 MILLION OF DEBT HELD BY ITS TWO LARGEST SHAREHOLDERS OREN L BENTON AND THE NATIONAL ELECTRICAL BENEFIT FUND INTO 16 MILLION ADDITIONAL SHARES OF SERIES B PREFERRED STOCK THE PROCEEDS WILL BE USED TO FINANCE GROWTH AND TO PURCHASE EQUIPMENT RAMTRON SAID 9312230175 931223 INTERNATIONAL FRENCH HOUSEHOLD CONSUMPTION PARIS FRENCH HOUSEHOLD CONSUMPTION FELL 16 IN NOVEMBER FROM THE PREVIOUS MONTH THE NATIONAL STATISTICS INSTITUTE REPORTED WITH THE EXCEPTION OF AUTOMOBILE PURCHASES THE AGENCY SAID ALL MAJOR AREAS OF THE MARKET SHOWED A CONTINUED DOWNWARD TREND PURCHASES OF TEXTILES AND LEATHER PRODUCTS WERE PARTICULARLY WEAK DURING THE MONTH FALLING 5 TO BRING THEM TO THEIR LOWEST LEVELS OF THE YEAR DURABLEGOODS PURCHASES WERE DOWN 1 WITH GAINS IN AUTOMOTIVE SALES FOREIGNVEHICLE PENETRATION OF THE FRENCH MARKET FELL TO 417 OF THE MARKET FROM 425 IN OCTOBER THE INSTITUTE SAID PURCHASES OF OTHER MANUFACTURED PRODUCTS WERE DOWN 05 ON THE MONTH 9312230174 931223 FOREIGN EXCHANGE YEN REBOUNDS AS BENTSEN HINTS CLINTON DOESN'T WANT CURRENCY TO FALL TOO FAR BY PETER HALESWORTH AND TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK US TREASURY SECRETARY LLOYD BENTSEN CAME TO THE AID OF THE STRUGGLING YEN BOOSTING THE CURRENCY AGAINST THE DOLLAR BY HINTING THAT THE CLINTON ADMINISTRATION DOESN'T WANT THE YEN TO FALL TOO FAR WHILE JAPAN CONTINUES TO RUN A HUGE TRADE SURPLUS THE SWISS FRANC MEANWHILE RACKED UP SOME HEALTHY GAINS RISING ACROSSTHEBOARD AS DEALERS STAKED OUT LONGTERM POSITIONS IN EXPECTATION OF A GOOD SHOWING BY THE SWISS ECONOMY IN 1994 AND JITTERS ABOUT THE DEPARTURE OF THE BANK OF CANADA GOVERNOR JOHN CROW WEAKENED THE CANADIAN DOLLAR EARLY IN THE DAY BUT THE CURRENCY SNAPPED BACK AFTER TRADERS DECIDED THAT MR CROW'S SUCCESSOR WOULD STEER A STEADY COURSE ON POLICY MATTERS LEAVING THE CURRENCY HIGHER AFTER A HECTIC DAY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17015 MARKS DOWN FROM 17103 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11035 YEN DOWN FROM 11118 YEN STERLING WAS TRADING AT 14965 UP FROM 14880 IN TOKYO ON THURSDAY CURRENCY MARKETS WERE CLOSED FOR A HOLIDAY AFTER THE YEN FELL TO A SEVENMONTH LOW EARLIER IN THE DAY ON JAPAN'S INABILITY TO COMPOSE AN ECONOMIC STIMULUS PACKAGE MR BENTSEN APPEARED TO DRAW THE LINE ON THE YEN'S DESCENT IN LIGHT OF RECENT CYCLICAL AND EXCHANGERATE DEVELOPMENTS WE ARE CONCERNED THAT JAPAN IS NOT MEETING ITS COMMITMENT TO ACHIEVE DOMESTICDEMANDLED GROWTH AND A SIGNIFICANT REDUCTION IN ITS EXTERNAL TRADE SURPLUS MR BENTSEN SAID IN A STATEMENT THE REMARK REMINDED TRADERS OF COMMENTS BY CLINTON ADMINISTRATION OFFICIALS EARLIER IN THE YEAR CALLING FOR A STRONGER YEN AS A WEAPON TO HELP CORRECT JAPAN'S TRADE SURPLUS WITH THE US THOSE REMARKS SENT THE DOLLAR TUMBLING AGAINST THE YEN AT THE TIME EVENTUALLY TO RECORD LOWS THOSE KINDS OF COMMENTS HAVEN'T SURFACED RECENTLY HOWEVER APPARENTLY BECAUSE OF JAPANESE ASSURANCES THAT THE GOVERNMENT WILL TAKE STEPS TO OPEN SOME MARKETS AND REVIVE THE DOMESTIC ECONOMY BOTH MOVES WOULD BENEFIT THE US BY INCREASING JAPANESE DEMAND FOR US GOODS BUT WITH TRADE NEGOTIATORS REPORTING LITTLE PROGRESS IN THE USJAPAN TRADE TALKS AND WITH STIMULUS MEASURES APPARENTLY DELAYED BY JAPANESE POLITICAL WRANGLINGS TRADERS INTERPRETED MR BENTSEN'S REMARK YESTERDAY AS A WARNING THAT THE US EXPECTS THOSE COMMITMENTS TO BE HONORED IT LOOKS LIKE THEY THREW DOWN THE SABER SAID KEVIN LAWRIE FOREIGN EXCHANGE MANAGER AT MELLON BANK NA IF THEY ARE GOING TO USE CURRENCY AS LEVERAGE TO GET CONCESSIONS ON TRADE MAYBE THE BULLISH SENTIMENT FOR THE DOLLAR WILL DISSIPATE HE SAID THE SURPRISINGLY PUGNACIOUS COMMENT KNOCKED THE DOLLAR BACK A FULL YEN IN JUST A FEW MINUTES BUT TRADERS SAID SUPPORT FOR THE DOLLAR RETURNED AT 11020 YEN PROPPING IT UP FOR THE REST OF THE DAY TRADERS SAID EVEN IF US OFFICIALS CONTINUE TO TALK UP THE YEN AGAINST THE DOLLAR THE UPSIDE POTENTIAL FOR THE YEN WILL BE LIMITED BY JAPAN'S WEAK ECONOMY AND POLITICAL UNCERTAINTY PLUS THE POSSIBILITY OF A RATE CUT BY THE BANK OF JAPAN THEY CAN'T TALK THE YEN UP A HECK OF A LOT ESPECIALLY WITH THE LACK OF LIQUIDITY IN THE MARKET DUE TO THIN YEAREND TRADING MR LAWRIE SAID MEANWHILE THE SWISS FRANC GAINED STRONGLY IN EUROPE IT APPEARS THE SWISS FRANC WILL DO WELL PEOPLE WANT TO HAVE IT IN THEIR PORTFOLIO AND THAT WILL BE AT THE MARK'S EXPENSE SAID THOMAS BENFER FOREIGN EXCHANGE MANAGER AT BANK OF MONTREAL IN NEW YORK RATHER THAN A REACTION TO ANY NEW DEVELOPMENT TRADERS SAID THE MOVE SEEMED TO BE A CONTINUATION OF A PROSWISS FRANC TREND BASED ON THE VIEW THAT THE SWISS ECONOMY WILL OUTPERFORM GERMANY'S DURING THE NEXT YEAR AT THE SAME TIME SWISS INTEREST RATES AREN'T EXPECTED TO FALL AS FAR OR AS FAST AS THOSE IN GERMANY ALSO HELPING THE FRANC TRADERS NOTED WERE CONTINUING PURCHASES OF FRANCS FOR YEN BY JAPANESE CORPORATIONS WHO WILL USE THE FRANCS TO PAY OFF SOME BONDS DUE TO MATURE IN 1994 LATE IN NEW YORK THE DOLLAR TRADED AT 14380 SWISS FRANCS DOWN FROM 14503 FRANCS TUESDAY THE MARK TRADED AT 08446 FRANCS DOWN FROM 08480 FRANCS TUESDAY 9312230173 931223 WHO'S NEWS DEL MONTE FOODS DEL MONTE FOODS SAN FRANCISCO ROBERT D'ORNELLAS 43 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS CLOSELY HELD FOOD PROCESSING COMPANY EFFECTIVE JAN 1 HE SUCCEEDS A EWAN MACDONALD 51 WHO IS RETIRING MR MACDONALD WAS ALSO CHAIRMAN THAT POSITION WILL REMAIN VACANT 9312230172 931223 WHO'S NEWS BANC ONE CORP BANC ONE CORP COLUMBUS OHIO I RICHARD HOREN 47 YEARS OLD CURRENTLY EXECUTIVE VICE PRESIDENT CHIEF FINANCIAL OFFICER AND TREASURER OF THIS BANK HOLDING COMPANY'S BANC ONE INDIANA CORP UNIT WAS NAMED PRESIDENT OF THE UNIT EFFECTIVE JAN 3 HE SUCCEEDS BRUCE S BAILEY 57 WHO WILL BECOME PRESIDENT OF THE BANC ONE WEST VIRGINIA CORP UNIT JAN 3 9312230171 931223 WHO'S NEWS BSD MEDICAL CORP BSD MEDICAL CORP SALT LAKE CITY STEVE CARWELL 38 YEARS OLD DIRECTOR OF SALES AND MARKETING WAS NAMED PRESIDENT OF THE SUPPLIER OF MEDICAL DEVICES HE SUCCEEDS ALAN HIMBER 41 WHO RESIGNED THE POSITION OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALSO PREVIOUSLY HELD BY MR HIMBER WILL REMAIN VACANT 9312230170 931223 UNITED DOMINION 9YEAR DEBT CHARLOTTE NC UNITED DOMINION INDUSTRIES LTD SAID ITS SUBSIDIARY UNITED DOMINION INDUSTRIES INC ISSUED 117 MILLION OF 68 NINEYEAR DEBT IN A PRIVATE PLACEMENT TO A GROUP OF US INSURANCE COMPANIES THE COMPANY SAID PROCEEDS WILL BE USED TO PAY SHORTERTERM BANK BORROWINGS INCURRED IN CONNECTION WITH AN ACQUISITION EARLIER THIS YEAR 9312230169 931223 GM RECALLS GEO METROS DETROIT GENERAL MOTORS CORP SAID IT'S RECALLING 460000 OF ITS 1989 TO 1993 MODEL CHEVROLET GEO METROS TO CORRECT A DEFECTIVE HOOD LATCH THAT MAY CAUSE THE HOOD TO FLY OPEN WHEN THE CAR IS IN MOTION GM SAID IT HAS RECEIVED ONE REPORT OF A HOOD OPENING WHILE THE VEHICLE WAS BEING DRIVEN BUT THERE HAVE BEEN NO REPORTED INJURIES RELATED TO THE DEFECTIVE LATCH GM SAID REPAIRS WILL BE MADE AT NO CHARGE TO THE CUSTOMER 9312230168 931223 WHO'S NEWS HUNTINGTON BANCSHARES INC HUNTINGTON BANCSHARES INC COLUMBUS OHIO ROBERT W RAHAL 40 YEARS OLD PRESIDENT OF BOBBY RAHAL INC AND GEORGE A SKESTOS 65 FOUNDER AND FORMER CHAIRMAN AND PRESIDENT OF HOMEWOOD BUILDERS WERE ELECTED TO THE BOARD OF THIS BANK HOLDING COMPANY FILLING VACANCIES 9312230167 931223 WHO'S NEWS FARRAGUT MORTGAGE CO FARRAGUT MORTGAGE CO MANSFIELD MASS STEPHEN H DICKMANN EXECUTIVE VICE PRESIDENT WAS NAMED TO THE VACANT POSTS OF PRESIDENT AND CHIEF EXECUTIVE OFFICER MR DICKMANN 51 YEARS OLD JOINED THE MORTGAGEORIGINATION AND SERVICING COMPANY IN MAY THOMAS W GERE INTERIM PRESIDENT WILL RESUME HIS REPONSIBILITIES AS SENIOR VICE PRESIDENT IN THE SECONDARY MARKETING DIVISION EDWARD D LAGARDE WHO HAD RESIGNED THE TOP POSTS LAST MARCH CITING ILL HEALTH ALSO RESIGNED AS A DIRECTOR FARRAGUT WHICH HAS BEEN REPORTING LOSSES IN RECENT QUARTERS CANCELED A PLAN TO BE ACQUIRED BY JI KISLAK INC EARLIER THIS WEEK 9312230166 931208 POLITICS & POLICY BUSH APPOINTEE TO FED IS CHAMPIONING THE FIGHT AGAINST LENDING BIAS AND SURPRISING EVERYONE BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LAWRENCE LINDSEY USED TO BE KNOWN AS A CARDCARRYING SUPPLYSIDER A CONSERVATIVE ECONOMIST WHOSE MAJOR WORK WAS A SPIRITED AND STATISTICAL DEFENSE OF THE 1981 REAGAN TAX CUT AND ALL THE GOOD IT DID FOR THE US ECONOMY TODAY TO THE BEWILDERMENT OF BOTH OLD FRIENDS ON THE RIGHT AND COMMUNITY ACTIVISTS ON THE LEFT MR LINDSEY HAS EMERGED AS THE FEDERAL RESERVE'S LEADING CHAMPION OF THE INTERESTS OF BLACKS AND HISPANICS WHO COMPLAIN THAT BANKS ARE DISCRIMINATING AGAINST THEM I'VE HAD PEOPLE ASK ME IF I'VE LOST MY BEARINGS ACKNOWLEDGES MR LINDSEY WHO WAS APPOINTED TO THE FED BY PRESIDENT BUSH AND CONFIRMED OVER OBJECTIONS FROM SOME LIBERAL DEMOCRATS IN THE SENATE A COLUMNIST FOR THE AMERICAN BANKER NEWSPAPER HAS EVEN ACCUSED HIM OF POLITICALLY CORRECT THEATRICS WHICH IS SOMETHING LIKE ACCUSING RICHARD NIXON OF BEING A COMMIE SYMPATHIZER MR LINDSEY LAST MONTH WAS AMONG THREE FED GOVERNORS CHAIRMAN ALAN GREENSPAN AND VICE CHAIRMAN DAVID MULLINS WERE THE OTHERS WHO BLOCKED AN ACQUISITION BY BOSTON'S SHAWMUT CORP BECAUSE OF BLEMISHES IN ITS RECORD IN LENDING TO BLACKS MORE INTRIGUING ARE THE CASES IN WHICH MR LINDSEY HAS STOOD ALONE AMONG THE SEVEN FED GOVERNORS AND OBJECTED TO BANK MERGERS CITING THE FED'S DUTY UNDER THE COMMUNITY REINVESTMENT ACT CRA TO WEIGH A BANK'S RECORD IN LENDING TO THE POOR AND MINORITY GROUPS WHEN IT CONSIDERS MERGER APPLICATIONS MR LINDSEY CAST THE SOLE VOTE IN NOVEMBER TO DENY FIRST INTERSTATE BANCORP'S APPLICATION TO ACQUIRE CALIFORNIA REPUBLIC BANK IN BAKERSFIELD CALIF HE POINTED OUT THAT FIRST INTERSTATE'S BAKERSFIELD BRANCHES HAD MADE ONLY FOUR MORTGAGE LOANS TO BLACKS IN 1992 LAST DECEMBER HE ALONE OBJECTED TO UNITED MISSOURI BANCSHARES INC'S APPLICATION TO BUY FOUR KANSAS BANKS THE FED HE SAID IN THAT CASE SHOULDN'T RELY SO HEAVILY ON UNITED MISSOURI'S PROMISES TO IMPROVE ITS DISAPPOINTING LENDING PERFORMANCE CRA MAY WEIGH MORE HEAVILY ON MY MIND THAN ON MY COLLEAGUES' SAYS MR LINDSEY WHO HEADS THE FED'S COMMITTEE ON CRA ISSUES I'M THE GUY WHO HAS TO TESTIFY I HAVE TO GIVE THE SPEECHES AND THAT HE DOES WITH GUSTO WARNING BANKERS THAT THEY MUST CHANGE THEIR WAYS OR POLITICIANS WILL FORCE THEM TO AS LONG AS BEHAVIOR EXISTS WHICH APPEARS OUTRAGEOUS TO REASONABLE INDIVIDUALS THE THREAT OF LEGISLATIVE AND/OR REGULATORY ACTION WITH ALL OF ITS ATTENDANT BURDENS REMAINS LIKELY HE TOLD A BANKERS CONVENTION IN JUNE BANKS HAVE A RESPONSIBILITY NOT ONLY TO END THE PRACTICE OF DISCRIMINATION BUT TO END THE APPEARANCE THAT DISCRIMINATION IS OCCURRING AS WELL MANY BANKERS ARE HARSHLY CRITICAL OF MR LINDSEY BUT ONLY IN PRIVATE THEY AREN'T YET ANGRY ENOUGH TO PUBLICLY CRITICIZE A REGULATOR WITH THE POWER TO MAKE OR BREAK A MERGER MR LINDSEY NOTES THAT HE DOESN'T FAVOR GOVERNMENT ALLOCATION OF CREDIT OR EVEN PROPOSALS THAT THE GOVERNMENT SHOULD HIRE BLACKS TO POSE AS LOAN APPLICANTS TO TEST BANKS BUT AS ONE FED COLLEAGUE WRYLY NOTES IF SOMEONE THOUGHT THEY WERE GETTING THE REAGAN JUSTICE DEPARTMENT THEY WERE WRONG IN PARTICULAR SAYS HAL SCOTT A BANKING LAW PROFESSOR AT THE HARVARD UNIVERSITY LAW SCHOOL THE STANCE HE TOOK ON SHAWMUT AND THE FACT THAT HE SEEMS TO BE PROMOTING CRA BOTH STRIKE ME AS A LITTLE OUT OF CHARACTER WITH HIS BACKGROUND IF CONSERVATIVE REPUBLICANS LIKE MR SCOTT ARE ASTONISHED BY MR LINDSEY COMMUNITY ACTIVISTS LONG SUSPICIOUS OF THE FED ARE DOUBLY SO SURPRISED YEAH OF COURSE I'M SURPRISED I'M PARTICULARLY SURPRISED WHAT HE IS WILLING TO SAY TO BANKERS SAYS BOB GNAIZDA COUNSEL TO A CALIFORNIA ANTIDISCRIMINATION GROUP CALLED THE GREENLINING COALITION MR LINDSEY SAYS LIBERALS MISUNDERSTAND WHAT CONSERVATIVES BELIEVE I NEVER THOUGHT THAT CONSERVATISM STOOD FOR RACISM HE SAYS SOME CONSERVATIVES ON THE OTHER HAND DON'T APPRECIATE THE LIMITS OF HIS JOB IF I WERE KING OR CONGRESS I MIGHT NOT WRITE ALL THE LAWS THAT WERE ON THE BOOKS HE SAYS BUT I'M CHARGED WITH ENFORCING THEM ALTHOUGH HIS VIEWS ARE SOMETIMES CARICATURED MR LINDSEY ACTUALLY MAKES SOME FINE DISTINCTIONS WHILE HE DISMISSES THE VIEW OF SOME CONSERVATIVE ECONOMISTS AND BANKERS THAT AS HE PUTS IT THERE IS NO RACIALLY BASED PROBLEM IN MORTGAGE LENDING HE ALSO ARGUES THAT IN FACT THERE ISN'T VERY MUCH DISCRIMINATION AND WHAT DOES OCCUR IS OVERWHELMINGLY INADVERTENT EVEN THOUGH HE CITES HOME MORTGAGE DISCLOSURE ACT DATA TO PROVE THAT BANKS TREAT BLACKS DIFFERENTLY THAN WHITES HE ALSO SAYS THE DATA EXAGGERATE THE EXTENT TO WHICH APPROVAL RATES DIFFER FOR RACIAL REASONS AND IF SOME CONSERVATIVES ARE APPALLED BY HIS DEFENSE OF THE REGULATIONS THAT REGULATORS USE TO ENFORCE THE COMMUNITY REINVESTMENT ACT PERHAPS THEY DON'T APPRECIATE HOW MUCH MR LINDSEY PREFERS THE EXISTING RULES TO NEW ONES THAT THE CLINTON ADMINISTRATION IS SCHEDULED TO PROPOSE TODAY HE SUGGESTS AS THE FED'S NEGOTIATOR ON THESE RULES HE SEES HIMSELF AS A BRAKE ON MR CLINTON'S EAGERNESS TO FORCE BANKS TO BE AGENTS OF SOCIAL CHANGE HIS LEVERAGE IS LIMITED THOUGH MR LINDSEY FAILED TO PERSUADE THE ADMINISTRATION TO ALLOW BANKS TO CONSIDER THE SAFETY OF THEIR EMPLOYEES IN DECIDING WHERE TO OPEN BRANCHES HE HAS SPENT SO MUCH TIME WORKING ON THE NEW RULES WITH MR CLINTON'S COMPTROLLER OF THE CURRENCY EUGENE LUDWIG THAT MR LUDWIG'S WIFE RECENTLY APPROACHED MR LINDSEY'S WIFE AT A PARTY AND SUGGESTED THEY COPY THE TACTICS OF COMMUNITY ACTIVISTS AND ORGANIZE A PROTEST TO GET THEIR HUSBANDS TO COME HOME AT NIGHT MR LINDSEY A 39YEAROLD HARVARDTRAINED PROTEGE OF REAGAN ECONOMIC ADVISER MARTIN FELDSTEIN HADN'T ANY INTEREST IN SPECIALIZING IN DISCRIMINATION WHEN HE ARRIVED AT THE FED IN 1991 WHEN MR GREENSPAN ASKED HIM TO TAKE OVER THE FED'S CONSUMER AND COMMUNITY AFFAIRS COMMITTEE MR LINDSEY SAYS HE REPLIED HOW CAN I BEG OFF MR GREENSPAN'S RESPONSE YOU CAN'T HE TOOK THE ASSIGNMENT AND RAN WITH IT SAYS J ALFRED BROADDUS PRESIDENT OF THE FEDERAL RESERVE BANK OF RICHMOND VA BEFORE JOINING THE FED MR LINDSEY SAYS HE HADN'T SPENT ANY TIME IN AMERICA'S INNER CITIES IN THE PAST TWO YEARS HE HAS TOURED 30 OF THEM FROM THE BRONX TO SOUTH CENTRAL LOS ANGELES THIS MAY BE STANDARD FOR POLITICIANS BUT IT ISN'T FOR FED GOVERNORS WHEN MR LINDSEY'S SECRETARY ASKED THE HEAD OF THE FED'S NEW ORLEANS OFFICE TO ARRANGE A COMMUNITY TOUR HE THOUGHT MR LINDSEY WANTED TO SEE THE FRENCH QUARTER IN DENVER MR LINDSEY IMPRESSED LOCAL ACTIVISTS BY SPENDING TWO HOURS LISTENING AND OFFERING ADVICE TO A COALITION OF COMMUNITY GROUPS THAT ARE FRUSTRATED BY THE ATTITUDE OF LOCAL BANKS AND THE FED'S DENVER OFFICE SAYS VERONICA BARELA EXECUTIVE DIRECTOR OF NEWSED COMMUNITY DEVELOPMENT CORP WHO ARRANGED THE SESSION SHE ALLOWS THAT MR LINDSEY'S WARMTH HAS SOFTENED HER HOSTILITY TO THE FED A LITTLE THE TRIPS CLEARLY HAVE HAD AN IMPACT ON MR LINDSEY HE IS HAUNTED BY THE WOMAN WHO APPROACHED HIM IN DALLAS TO COMPLAIN THAT A BANK TURNED DOWN HER MORTGAGE APPLICATION BECAUSE HER 10000 DOWN PAYMENT WAS ALL IN CASH YOU PEOPLE IN WASHINGTON THINK WE'RE ALL DRUG DEALERS DON'T YOU SHE SAID I DIDN'T HAVE AN ANSWER FOR HER HE SAYS AND HE ALSO IS INCREASINGLY AWARE OF THE LIMITS OF MONETARY POLICY TO SOLVE THE PROBLEMS OF POOR COMMUNITIES WHEN WE CUT INTEREST RATES HE SAYS IT'S GOING TO BE FELT A LOT MORE BY THE MIDDLE CLASS AND BUSINESSES THAN IN NEIGHBORHOODS WHERE THERE ARE NO BANKS AND NO CREDIT MR LINDSEY WHO SPENT THREE YEARS ON THE STAFF OF PRESIDENT REAGAN'S COUNSEL OF ECONOMIC ADVISERS AND ANOTHER THREE AS AN ECONOMIC ASSISTANT TO PRESIDENT BUSH HASN'T MUCH IN COMMON IDEOLOGICALLY WITH THE CLINTON TEAM ALICIA MUNNELL NOW AN ASSISTANT TREASURY SECRETARY WROTE PERHAPS THE MOST SCATHING REVIEW OF MR LINDSEY'S 1990 BOOK ON REAGAN'S TAX CUTS CALLING IT SIMPLISTIC AND POLEMICAL BUT MR LINDSEY EVEN HAS WON OVER SOME ADMINISTRATION OFFICIALS WE DON'T ALWAYS AGREE ON EVERYTHING SAYS MR LUDWIG THE COMPTROLLER BUT HE HAS BEEN STRAIGHT I THINK HE HAS A HEART SEE RELATED LETTER LETTERS TO THE EDITOR MISSOURI BANCSHARES DEFENDS ITS RECORD WSJ DEC 23 1993 9312080013 YY93 MM12 9312230165 931223 WASHINGTON STATE SAYS GM TO PAY 100000 IN 'LEMON' CAR CASE OLYMPIA WASH THE STATE OF WASHINGTON ATTORNEY GENERAL'S OFFICE SAID GENERAL MOTORS CORP HAS AGREED TO PAY THE STATE NEARLY 100000 RELATING TO AN INVESTIGATION INTO REPURCHASED LEMON VEHICLES THE AGREEMENT IS IN RESPONSE TO QUESTIONS RAISED WHEN GM SOLD THROUGH AUCTION 11 VEHICLES TO WASHINGTON DEALERS THAT HAD BEEN REPURCHASED THROUGH LEMON LAW ARBITRATION THE CARS WERE EVENTUALLY SOLD BY THE DEALERS TO CONSUMERS WHO WERE NOT INFORMED THE VEHICLES WERE LEMON BUYBACKS AND THAT GM HAD PROVIDED A 12MONTH OR 12000MILE ADDITIONAL WARRANTY WITH THE VEHICLES THE ATTORNEY GENERAL'S OFFICE SAID IN A STATEMENT EACH OF THE 11 BUYERS WILL RECEIVE UP TO 2000 IN RESTITUTION THE ATTORNEY GENERAL'S OFFICE SAID GM DENIED VIOLATING THE LAW BUT SAID IT WILL MEET DISCLOSURE REQUIREMENTS IN ALL FUTURE TRANSACTIONS 9312230164 931223 WHAT'S NEWS WORLDWIDE SOUTH AFRICA APPROVED A HISTORIC CONSTITUTION ENDING APARTHEID THE WHITERUN PARLIAMENT VOTED 23745 TO APPROVE THE CONSTITUTION GIVING WHITES AND BLACKS EQUAL STATUS THE SESSION WAS LIKELY TO BE THE LAST FOR THIS PARLIAMENT WHICH EXCLUDES THE BLACK MAJORITY AND GIVES ASIAN AND MIXEDRACE LAWMAKERS LITTLE POWER THE CONSTITUTION WILL RESULT IN SELFGOVERNMENT FOR BLACKS FOR THE FIRST TIME IN SOUTH AFRICAN HISTORY AND PROMISES PROTECTION OF INDIVIDUAL AND MINORITY RIGHTS THE COUNTRY'S FIRST ELECTION OPEN TO ALL RACES IS SET FOR APRIL MERRILL LYNCH AND LEHMAN BROTHERS WILL REESTABLISH THEIR BUSINESS TIES WITH SOUTH AFRICA AND PROCTER & GAMBLE AND IBM ARE BOTH RETURNING THERE JUSTICE DEPARTMENT OFFICIALS MAY SEEK A SUBPOENA TO FORCE DISCLOSURE OF FINANCIAL RECORDS PERTAINING TO AN INVESTMENT THE CLINTONS MADE IN A REALESTATE VENTURE THE PRESIDENT YESTERDAY TOLD REPORTERS THAT OF COURSE WE'LL DO WHAT WE CAN TO COOPERATE WITH INVESTIGATORS REGARDING THE FILES CLINTON DENOUNCED ALLEGATIONS BY ARKANSAS STATE TROOPERS OF MARITAL INFIDELITY WHILE HE WAS GOVERNOR AND OF SUBSEQUENT ATTEMPTS TO COVER IT UP SAYING WE HAVE NOT DONE ANYTHING WRONG HE ADDED I JUST THINK IT IS NOT APPROPRIATE IN A SITUATION LIKE THIS FOR ME TO DO MORE THAN I'M DOING IN RESPONSE TO THE ACCUSATIONS AN ANTITRUST CASE WAS DROPPED AGAINST MIT IN A SETTLEMENT THAT ALLOWS COLLEGES TO EXCHANGE LIMITED DATA IN THE AWARDING OF STUDENT FINANCIAL AID BOTH SIDES CLAIMED VICTORY CASTRO'S DAUGHTER ESCAPED FROM CUBA AND WAS GRANTED POLITICAL ASYLUM IN THE US ALINA FERNANDEZ REVUELTA 37 WHO HAS DENOUNCED HER FATHER AS A TYRANT WENT TO MADRID THIS WEEK AND REQUESTED ASYLUM AT THE US EMBASSY SHE ARRIVED IN ATLANTA ON TUESDAY YELTSIN TOLD A NEWS CONFERENCE THAT RUSSIA WOULD STICK TO ITS BASIC ECONOMIC POLICIES AND THAT THE ARCHITECT OF THE REFORMS GAIDAR WOULD REMAIN IN THE GOVERNMENT THE PRESIDENT ALSO SAID RUSSIA WILL PAY MORE ATTENTION TO PROVIDING SOCIAL GUARANTEES FOR THE POOR BUT NOT AT THE EXPENSE OF RUNAWAY INFLATION THE US GOVERNMENT WARNED HAITI'S MILITARY LEADERS THAT THEY WOULD HAVE TO COMPLY WITH A PEACE PLAN BY JAN 15 OR ELSE RISK A FURTHER TIGHTENING OF INTERNATIONAL ECONOMIC SANCTIONS CLINTON SETTLED A DISPUTE BETWEEN THE WHITE HOUSE BUDGET OFFICE AND THE PENTAGON GIVING THE MILITARY MORE FUNDING THAN HE HAD PROPOSED AS LONG AS THE MONEY ISN'T SPENT NEXT YEAR THE PENTAGON OUTLINED SPECIFIC REGULATIONS TO ENFORCE A NEW LAW ON HOMOSEXUALS SERVING IN THE US MILITARY NOTING THAT WHILE HOMOSEXUALITY ISN'T A BAR TO SERVICE GAY CONDUCT IS FORBIDDEN EXAMPLES OF OUTLAWED ACTIONS ARE HANDHOLDING KISSING OR OTHER PHYSICAL CONTACT BETWEEN PEOPLE WHO ARE OF THE SAME SEX HAROLD ICKES WAS NAMED BY CLINTON TO COORDINATE THE ADMINISTRATION'S EFFORTS TO WIN PASSAGE OF ITS HEALTHCARE BILL THE NEW YORK LABOR LAWYER AND FRIEND OF THE PRESIDENT WILL BECOME DEPUTY CHIEF OF STAFF A FEW WEEKS AGO CLINTON HAD BEEN SET TO ANNOUNCE THE APPOINTMENT OF ICKES WHO SAID AT THAT TIME HE DIDN'T WANT THE JOB THE EUROPEAN COMMUNITY FAILED TO BREAK A DEADLOCK IN BOSNIA TALKS DESPITE A WARNING TO SERBS OF TIGHTER SANCTIONS IF THEY DON'T CEDE LAND TO PROVIDE A VIABLE STATE FOR MUSLIMS THE SERBS MUSLIMS AND CROATS AGREED TO A CHRISTMAS TRUCE HOWEVER BRITAIN AND IRELAND RULED OUT DEMANDS BY SINN FEIN THE POLITICAL WING OF THE IRISH REPUBLICAN ARMY FOR DIRECT TALKS TO CLARIFY PARTS OF A NORTHERN IRELAND PEACE PROPOSAL BRITAIN'S MAJOR STRESSED THAT THE PLAN IS NONNEGOTIABLE CHINA AND VIETNAM HAVE AGREED TO SHELVE THEIR DISPUTE OVER OWNERSHIP OF THE SPRATLY ISLANDS CHINESE OFFICIALS SAID THE ORAL AGREEMENT CONCERNING THE OILRICH ARCHIPELAGO IN THE SOUTH CHINA SEA WAS REACHED LAST MONTH PALESTINIAN GUNMEN ATTACKED A CAR IN THE OCCUPIED WEST BANK KILLING TWO ISRAELI MEN IN AN INCIDENT THAT INTENSIFIED THE CALLS BY RIGHTWING ISRAELIS FOR AN END TO ANY NEGOTIATIONS WITH THE PLO 9312230163 931223 LEVI STRAUSS TO MOVE TWO OF ITS OPERATIONS OUT OF SAN FRANCISCO SAN FRANCISCO LEVI STRAUSS & CO PLANS TO MOVE TWO OPERATIONS HERE OUT OF CALIFORNIA NEXT SUMMER THE COMPANY'S COMPUTER DATA CENTER WILL BE MOVED TO DALLAS TO AVOID POTENTIAL EARTHQUAKE DAMAGE HERE A SPOKESMAN SAID THE COMPANY'S BRITTANIA SPORTSWEAR DIVISION WILL MOVE TO THE SEATTLE AREA TO SAVE ON REAL ESTATE COSTS HE SAID THE COMPUTER DATA CENTER EMPLOYS 70 PEOPLE THE BRITTANIA DIVISION HAS 85 EMPLOYEES AN UNDETERMINED NUMBER OF WORKERS AT THE TWO OPERATIONS WILL BE RELOCATED THE REMAINDER WILL BE LAID OFF THE SPOKESMAN SAID LEVI STRAUSS WHICH WILL KEEP ITS CORPORATE HEADQUARTERS HERE EMPLOYS ABOUT 34200 PEOPLE WORLDWIDE 9312230162 931223 MARKETING TENACITY SELLS HIGH FASHION TO PITTSBURGH BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH NOON MONDAY A FEW DAYS BEFORE CHRISTMAS RETAIL'S PULSE IS QUICKENING BUSTLING BETWEEN HER ADJACENT APPAREL STORES IS A SMALL WOMAN IN A BIG HURRY KATHERINE BARCHETTI HAS GOOD REASON TO RUSH WHILE MOST INDEPENDENT RETAILERS ARE SIMPLY SURVIVING SHE IS THRIVING AND IN A CITY WHERE ARMANI AND ZEGNA SUITS AREN'T THE NORM BUT DECEMBER SALES AT THE K BARCHETTI SHOPS ARE UP ALMOST 50 FROM LAST YEAR KATHERINE BARCHETTI IS PERHAPS THE BEST INDEPENDENT RETAILER I'VE EVER SEEN SAYS ROBERT SPRAGUE A RETAIL CONSULTANT IN NEW HAMPSHIRE SHE'S IN THE NEW YORK MARKET MORE THAN ANYONE I KNOW 27 TIMES IN ONE YEAR AND DRAGGING BACK THINGS UNAVAILABLE ANYWHERE ELSE IN PITTSBURGH THIS YEAR K BARCHETTI SHOPS A 3500SQUAREFOOT MEN'S STORE AND A NEW 1500SQUAREFOOT WOMEN'S STORE WILL POST SALES OF ABOUT 25 MILLION UP NEARLY 15 FROM LAST YEAR MS BARCHETTI SAYS OVER THE PAST YEAR SALES HAVE HOVERED AROUND 800 PER SQUARE FOOT AN EXTRAORDINARILY HIGH NUMBER SAYS NEIL STERN A CHICAGO CONSULTANT BY COMPARISON BARNEYS NEW YORK A CHAIN OF UPSCALE DEPARTMENT STORES IN NEW YORK AND CHICAGO TYPICALLY DOES ABOUT 500 PER SQUARE FOOT IN CHICAGO MR STERN SAYS AND DESPITE EXPENSIVE PRICES AS MUCH AS 1395 FOR AN ITALIAN SUIT AND 180 FOR A DRESS SHIRT SHE SELLS HER GOODS QUICKLY THE MARKET FOR HER UPSCALE CLOTHING IS TINY HERE BUT SHE'S CORNERED IT CONVINCING MANY WHO ONCE SHOPPED OUT OF TOWN THAT SHE CAN DO BETTER SHE TAILORS EACH PIECE OF MERCHANDISE TO HANDPICKED CUSTOMERS WHOSE TASTES SHE KNOWS INTIMATELY ON HER FREQUENT TRIPS TO SEVENTH AVENUE SHE'S LIKELY TO CALL AT LEAST ONE OF THEM SAYING I'VE GOT A GREAT SUIT THAT LOOKS LIKE YOU INTERESTED EVEN HER BIGGEST LOCAL COMPETITOR CHARLES SPIEGEL SAYS HE TAKES HIS HAT OFF TO MS BARCHETTI IN HIS 2500SQUAREFOOT UPSCALE MEN'S STORE CHARLES SPIEGEL FOR MEN HE MAKES 500 PER SQUARE FOOT MS BARCHETTI HAS CONQUERED THE HORRORS OF SHOPPING FOR HER LARGELY MALE CLIENTELE THE SECOND TIME I WAS IN THERE THEY REMEMBERED WHO I WAS SAYS JEFFREY MARTIN AN ACCOUNT EXECUTIVE WITH A LOCAL ROCK RADIO STATION I TRAVEL ALL THE TIME AND CAN BUY OUT OF TOWN BUT KATHERINE WILL CALL FROM NEW YORK AND FIND INCREDIBLE THINGS FOR ME IF THERE'S ONE RESOUNDING CRITICISM OF K BARCHETTI SHOPS IT'S THE PERCEPTION THAT HER MERCHANDISE IS TRENDY LOOK YOU'RE SPENDING A LOT OF MONEY ON SOMETHING THAT'S GOING TO BE OUT OF STYLE SOON SAYS LARRY SLATER A POLO AND BROOKS BROTHERS MAN WHO WAS SHOPPING AT THE POLO STORE NEARBY SHE ADMITS SHE'LL FETCH THE BOLDEST GENE MEYER TIES OR SPECIALORDER A 7000 CROCODILE BRIEFCASE FOR A CHOOSY CUSTOMER SHE WILL STOCK SILK BOXERS WITH GIANT POLKA DOTS AND GOLF SWEATERS WITH CARTOON CHARACTERS BUT INSISTS SHE KEEPS HER CONSERVATIVE CUSTOMERS WELLFED WITH PIN STRIPES AND SUSPENDERS BILLBOARDS ACROSS THE CITY SPOTLIGHT THE WELLDRESSED MOVERSANDSHAKERS WHO ARE K BARCHETTI CUSTOMERS IN THE BILLBOARDS MS BARCHETTI STANDS SMILING AMONG THE LAWYERS DOCTORS AND EVEN ATHLETES MEN THINK YOU HAVE TO BE THIN TO WEAR EUROPEAN SUITS I SELL TO STEELERS PIRATES AND PENGUINS SHE SAYS OUTSIDE HER STORES HER CUSTOMERS ARE HER BEST FRIENDS SHE FISHES GOLFS AND PLAYS SQUASH WITH THEM INSIDE THE PERSONAL TOUCH REMAINS WHEN A VENDOR SHIPPED A PAIR OF 350 DRESS SHOES TOO LATE FOR THE CUSTOMER WHO ORDERED THEM MS BARCHETTI GIFTWRAPPED THEM TORE UP THE BILL AND DELIVERED THEM WITH A HANDWRITTEN APOLOGY ANOTHER TIME A PANICKY GOLFER CALLED AFTER FORGETTING HIS SHIRT FOR A POSTGAME PARTY MS BARCHETTI QUICKLY DELIVERED A REPLACEMENT MS BARCHETTI KNOWS ABOUT 500 OF HER CUSTOMERS ON A FIRSTNAME BASIS SINCE SHE WAS A HIGHSCHOOL GRADUATE OPENING HER FIRST STORE WITH 1000 MS BARCHETTI HAS METICULOUSLY RECORDED CUSTOMERS' SIZES STYLES AND BUYING HABITS DO THEY LIKE FERRAGAMO OR HUGO BOSS HOW MUCH DID THEY SPEND IN OCTOBER WHAT FRAGRANCE DO THEY WEAR THEN SHE KEPT HER RECORDS ON INDEX CARDS TODAY SHE KEEPS THEM IN A DATABASE OF ABOUT 28000 CLIENTS ROSLYN LITMAN A TRIAL LAWYER AND K BARCHETTI CUSTOMER RECALLS STROLLING PAST THE WOMEN'S STORE WHEN MS BARCHETTI SUDDENLY FLEW TO HER SIDE INSISTING I HAVE THE PERFECT SHOES FOR YOU MS LITMAN BOUGHT THREE PAIRS THERE IS A CERTAIN TYPE OF SHOE I NEED FOR COURT KATHERINE KNOWS THAT AND REMEMBERS SHE REWARDS ALLEGIANCE WHERE IT CAN COUNT MOST THE WALLET ABOUT A DECADE AGO IN NEED OF A CASHFLOW BOOST MS BARCHETTI DEVISED HER FREQUENT FLYER PROGRAM WHERE FOR A GIVEN NUMBER OF DOLLARS SPENT TOP CUSTOMERS RECEIVE A STORE CREDIT A DIVIDEND IN TWO YEARS SALES DOUBLED FROM 913000 TO 21 MILLION MS BARCHETTI PUTS A THREEMONTH EXPIRATION ON VOUCHERS AND FORBIDS THEIR USE TOWARD CREDITCARD BILLS I SIT UP NIGHTS CONTEMPLATING WHO TO GIVE THESE DIVIDENDS TO SHE SAYS IF A CUSTOMER IS RUDE TO AN EMPLOYEE IN MY STORE I WILL NOT HESITATE TO REMOVE HIM FROM THE LIST OUTSPOKEN AND AT TIMES AUDACIOUS MS BARCHETTI HAS GONE TOO FAR IN 1984 FUELED BY SOARING PROFITS MS BARCHETTI OPENED A SHOP FOR CLOTHES MADE BY ITALIAN DESIGNER SALVATORE FERRAGAMO THE STORE FAILED IN A YEAR I THOUGHT I WAS INVINCIBLE MS BARCHETTI CONCEDES I THOUGHT I COULD SELL ANYTHING THE SHOES SOLD SO WELL HERE BUT THE CLOTHES JUST DIDN'T EITHER NOBODY WANTED THEM OR I COULDN'T SELL THEM WHILE PAYING HER DEBTS HER CREDIT PLUMMETED AND VENDORS BEGAN DROPPING HER SHE KEPT SELLING THE FERRAGAMO MEN'S SHOES ALWAYS A MONEYMAKER BUT WHEN SHE FINISHED PAYING THE COMPANY FOR THE FAILED STORE EVEN FERRAGAMO QUIT SHIPPING EVERYONE INCLUDING FERRAGAMO THOUGHT I WOULD GO BANKRUPT MS BARCHETTI ADMITS WORKING 80 HOURS A WEEK SHE BUILT HER BUSINESS UP AGAIN SIX YEARS AGO THE ONLY DAY I EVER GOT DRUNK MS BARCHETTI'S CREDIT SOARED BACK TO TRIPLE A AND SIX MONTHS AGO THE FERRAGAMO COMPANY WHICH ACKNOWLEDGES THE MANY MISUNDERSTANDINGS BEGAN SHIPPING SHOES AGAIN THEY ARE NOW HER NO 1 SELLING MEN'S SHOE NOW MS BARCHETTI IS SEARCHING FOR A NEW MANAGER FOR HER WOMEN'S STORE AND THE PROCESS IS INTENSE SERIOUS CONTENDERS ARE SUBJECTED TO THREE INTERVIEWS PLUS AN IQ AND PERSONALITY TEST HER STAFF WHICH EARNS SALARY PLUS BONUSES MUST UNDERSTAND CUSTOMERS AS WELL AS SHE DOES AND NEVER FORGET TO CALL HER AT 9 PM TO REPORT THE DAY'S SALES I CAN'T SLEEP AT NIGHT UNTIL I KNOW SHE SAYS 9312230161 931223 BUSH INDUSTRIES' PLANT EXPANSION JAMESTOWN NY BUSH INDUSTRIES INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE A 450000 SQUAREFOOT FACILITY NEAR ITS MAIN PLANT AND ADDED 200000 SQUARE FEET OF LEASED SPACE AT ITS SAYBROOK OHIO DISTRIBUTION CENTER AS A RESULT BUSH'S MANUFACTURING FLOOR SPACE HAS BEEN INCREASED TO ABOUT TWO MILLION SQUARE FEET FROM 13 MILLION SQUARE FEET BUSH MAKES READYTOASSEMBLE FURNITURE FOR THE HOMEENTERTAINMENT HOMEOFFICE COMMERCIALOFFICE AND HOMEFURNISHINGS MARKETS 9312230160 931223 S&P INDEX TO CUT TRAVELERS NEW YORK STANDARD & POOR'S CORP SAID INSURER TRAVELERS CORP WILL BE REMOVED FROM ITS S&P 500STOCK INDEX AFTER THE CLOSE OF TRADING THURSDAY DEC 30 UPON COMPLETION OF ITS MERGER WITH PRIMERICA CORP CISCO SYSTEMS INC MENLO PARK CALIF WILL REPLACE TRAVELERS IN THE INDEX CURRENTLY CISCO IS IN THE S&P MIDCAP 400 INDEX ALUMAX INC RECENTLY SPUN OFF FROM CYPRUS AMAX MINERALS CO NORCROSS GA WILL REPLACE CISCO IN THE S&P MIDCAP 400 INDEX 9312230159 931223 WHO'S NEWS RYDER SYSTEM INC RYDER SYSTEM INC MIAMI THREE EXECUTIVES WERE NAMED TO NEWLY CREATED POSITIONS AT THE COMPANY'S RYDER INTERNATIONAL DIVISION KENNETH V ECKHART 45 YEARS OLD WAS NAMED VICE PRESIDENT HUMAN RESOURCES MR ECKHART WAS FORMERLY GROUP DIRECTOR CORPORATE HUMAN RESOURCES AT RYDER SCOTT R FRANCIS 36 FORMER FINANCE DIRECTOR OF RYDER AIRLINES SERVICES CALEDONIAN WAS NAMED VICE PRESIDENT FINANCE GLENN A SCHNEIDER 52 PREVIOUSLY VICE PRESIDENT OF RYDER'S VEHICLE LEASING & SERVICES DIVISION WAS NAMED VICE PRESIDENT OPERATIONS 9312230158 931223 BOMBARDIER CONTRACT IN INDONESIA MONTREAL BOMBARDIER INC SAID ITS EUROPEAN RAIL UNIT AND NETHERLANDSBASED HOLEC JOINTLY SIGNED A COLLABORATION CONTRACT WITH PT INKA INDONESIA TO SUPPLY 25 ELECTRIC COMMUTER TRAINS TO THE CITY OF JAKARTA INDONESIA BOMBARDIER A CANADIAN TRANSPORTATIONEQUIPMENT MAKER SAID ITS SHARE OF THE CONTRACT IS VALUED AT 31 BILLION BELGIAN FRANCS US874 MILLION HOLEC MAKES ELECTRICAL SYSTEMS FOR MASSTRANSIT EQUIPMENT PT INKA IS A MAKER OF TRAIN EQUIPMENT 9312230157 931223 AIRLINEWORKER OWNERSHIP MAY MAKE A SLOW ASCENT BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL EMPLOYEE CONTROL OF UNITED AIRLINES COULD TRIGGER MORE WORKER OWNERSHIP IN THE US AIRLINE INDUSTRY BUT PROBABLY NOT IMMEDIATELY THE UNITED PLAN CLEARED BY DIRECTORS YESTERDAY UNDER WHICH EMPLOYEES WOULD OWN AT LEAST 53 OF ITS UAL CORP PARENT MOST CERTAINLY WOULD PUT TREMENDOUS PRESSURE ON COMPETITORS TO TRY TO EMULATE SAYS ALBERT DELAURO DIRECTOR OF THE TRANSPORTATION PRACTICE OF BENEFITSCONSULTANT TOWERS PERRIN THAT WOULD ESPECIALLY BE THE CASE IF THE UNITED BUYOUT AS EXPECTED BRINGS SHARPLY LOWER LABOR COSTS AND WORKRULE CHANGES THAT WOULD GIVE THE NATION'S LARGEST AIRLINE A COMPETITIVE EDGE AGAINST ITS BIG RIVALS THE MAJOR CARRIERS ALL ARE FIGHTING AGAINST LOWCOST AIRLINES THAT HAVE BEEN TAKING A LARGER SHARE OF THE DOMESTIC MARKET PEOPLE ARE GOING TO COPY WHAT WORKS SAYS MR DELAURO IF OTHER AIRLINES COPY UNITED THEY MAY STOP SHORT OF GIVING EMPLOYEES A MAJORITY STAKE EMPLOYEE OWNERSHIP OF 10 TO 30 CAN BE A GREAT THING SAID JON ASH MANAGING DIRECTOR OF CONSULTANT GLOBAL AVIATION ASSOCIATES LTD I DON'T THINK THERE WILL BE A GREAT RUSH TO THIS TROUGH OF MAJORITY OWNERSHIP FOR NOW MOST OF THE LARGER US CARRIERS SAID THEY WILL CLOSELY MONITOR UNITED'S EXPERIENCE I THINK EVERY AIRLINE IS GOING TO BE WATCHING CLOSELY SAID A SPOKESMAN FOR USAIR GROUP INC WHICH HAS BEEN STRUGGLING TO PARE ITS COSTS USAIR BASED IN ARLINGTON VA HASN'T ANY PLANS FOR A SIMILAR BUYOUT AND IT HASN'T BEEN APPROACHED BY ITS UNIONS THE SPOKESMAN SAID AT DELTA AIR LINES WE'LL NEVER SAY NEVER TO EMPLOYEE OWNERSHIP A SPOKESMAN SAID WE'LL DO WHAT WE HAVE TO DO TO SURVIVE ATLANTABASED DELTA WHICH IS MOSTLY NONUNION MAINTAINS THAT IT IS REDUCING ITS COSTS BY TAKING MANY MODEST STEPS AMR CORP PARENT OF AMERICAN AIRLINES HAS SAID FOR SEVERAL MONTHS THAT IT WOULD ENTERTAIN OVERTURES FROM ITS WORKERS FOR A STAKE IN THE NATION'S NO 2 CARRIER AFTER UNITED INDEED ROBERT CRANDALL ITS CHAIRMAN SAID IN A SPEECH LAST WEEK THAT PARTIAL EMPLOYEE OWNERSHIP REGARDLESS OF THE LEVEL IS ONE OF THE OPTIONS AVAILABLE TO HELP LABOR AND MANAGEMENT RESTRUCTURE OTHER OPTIONS MAY EMERGE ELSEWHERE MR CRANDALL ALSO SAID THAT AMERICAN COULD SLASH ITS EXPENSES BY 15 BILLION A YEAR IF IT COULD OPERATE AT THE LABOR RATE ENJOYED BY LOWCOST CONTINENTAL AIRLINES AND IT COULD SAVE 11 BILLION ANNUALLY IF IT HAD THE LABOR COSTS OF SOUTHWEST AIRLINES IN DUE COURSE THE INDUSTRY WILL RESTRUCTURE ITSELF AROUND LABOR COSTS WHICH APPROXIMATE THOSE OF TODAY'S LOWEST LABORCOST CARRIERS HE SAID LEADERS OF THE ALLIED PILOTS ASSOCIATION A GROUP THAT REPRESENTS AMERICAN'S PILOTS HAVE HAD A SERIES OF DINNERS WITH MR CRANDALL AND HIS TOP OFFICERS IN THE PAST MONTH TO LOOK AT WAYS TO GET OUR RELATIONSHIP ON A MORE CONGENIAL FOOTING SAID AN APA SPOKESMAN THE NEXT MEETING IS SLATED FOR JAN 3 AND WE'RE PREPARING TO GET A LITTLE MORE SUBSTANTIVE HE SAID IT'S REASONABLE TO EXPECT WE'RE GOING TO TALK ABOUT EMPLOYEE OWNERSHIP AT SOME POINT EMPLOYEE OWNERSHIP IN THIS COMPETITIVE INDUSTRY WHICH IS SO LABORINTENSIVE PROBABLY IS THE BEST SOLUTION SAID KEVIN MURPHY AN AIRLINE ANALYST FOR MORGAN STANLEY & CO THERE ARE ALREADY SOME EXAMPLES WORKERS OWN 45 OF TRANS WORLD AIRLINES AND NEARLY 38 OF THE PARENT OF NORTHWEST AIRLINES BUT TWA'S EMPLOYEES WOUND UP AS SHAREHOLDERS AFTER THAT COMPANY EMERGED FROM BANKRUPTCY COURT AND NORTHWEST WORKERS AGREED TO HEFTY CONCESSIONS IN RETURN FOR PARTIAL OWNERSHIP ONLY TO AVERT A BANKRUPTCYCOURT FILING UNITED'S CASE IS DIFFERENT FROM NORTHWEST'S AND TWA'S IN THAT FINANCIAL DESPERATION DIDN'T PLAY A ROLE IN THE AGREEMENT TO LET WORKERS TRADE CONCESSIONS FOR AN OWNERSHIP STAKE THE NATION'S LARGEST AIRLINE SEES THE TRANSACTION AS A WAY OF ACHIEVING HARMONIOUS LABOR RELATIONS SHARPLY LOWER COSTS AND A SEPARATE LOWERCOST AIRLINE FOR SHORT DOMESTIC ROUTES THE UNIONS SEE THE BUYOUT AS AN OPPORTUNITY TO RUN THE AIRLINE AND TO PROFIT FROM ITS SUCCESSES 9312230156 931223 COMPUTER DATA GETS CONTRACT ROCKVILLE MD COMPUTER DATA SYSTEMS INC SAID IT WAS AWARDED A DEPARTMENT OF EDUCATION CONTRACT TO PROVIDE DATA PROCESSING SERVICES FOR THE FEDERAL DIRECT STUDENT LOAN PROGRAM COMPUTER DATA IS THE PRIME CONTRACTOR IN THE CONTRACT WHICH HAS A BASE PERIOD OF 21 MONTHS WITH FIVE ONEYEAR OPTIONS THE BASE PERIOD HAS AN ESTIMATED VALUE OF ABOUT 91 MILLION SUBSEQUENT OPTIONS COULD RAISE THE ESTIMATED TOTAL TO 376 MILLION 9312230155 931223 WHO'S NEWS DRECO ENERGY SERVICES LTD DRECO ENERGY SERVICES LTD EDMONTON ALBERTA THIS OILFIELD SERVICES COMPANY NAMED ROBERT L PHILLIPS 42 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER MR PHILLIPS A PARTNER OF CALGARY ALBERTA LAW FIRM BLAKE CASSELS & GRAYDON HAS BEEN A DRECO DIRECTOR FOR 12 YEARS HE SUCCEEDS FRANK KOBIE 60 WHO PLANS TO RETIRE IN APRIL DRECO SAID MR KOBIE WILL CONTINUE TO SERVE ON ITS BOARD 9312230154 931223 MARKETING BRIEF NOTED FOX BROADCASTING CO NAMED DAVID HILL PRESIDENT OF FOX SPORTS WITH RESPONSIBILITY FOR CREATING FOX'S SPORTS DIVISION INCLUDING ITS NEWLY WON COVERAGE OF NATIONAL FOOTBALL CONFERENCE BROADCASTS MR HILL 47 HAS BEEN HEAD OF ANOTHER NEWS CORP DIVISION SKY SPORTS THE UK'S ONLY DEDICATED SPORTS CHANNEL IN 1988 HE HELPED LAUNCH NEWS CORP'S SKY TELEVISION BRITAIN'S FIRST SATELLITE TV STATION HE WILL REPORT TO LUCIE SALHANY CHAIRMAN OF FOX BROADCASTING 9312230153 931223 MARKETING & MEDIA ADVERTISING CONFLICT OF OLYMPIC SPONSORSHIPS CLAIMS SEARS AS ITS FIRST VICTIM BY KEVIN GOLDMAN THE 1994 WINTER OLYMPIC GAMES DON'T BEGIN UNTIL FEBRUARY BUT THEY HAVE ALREADY CLAIMED THEIR FIRST LOSER SEARS ROEBUCK & CO HAD HOPED TO SPONSOR TWO US TEAMS FIGURE SKATING AND SKIING IN THE WINTER OLYMPICS IN LILLEHAMMER NORWAY AND TWO US TEAMS GYMNASTICS AND SWIMMING IN THE SUMMER OLYMPICS IN ATLANTA IN 1996 BUT UNDER COMPLEX NEW RULES ESTABLISHED BY OLYMPIC OFFICIALS COMPANIES CANNOT SPONSOR INDIVIDUAL TEAMS IF THAT SPONSORSHIP IS CONSIDERED A CONFLICT WITH A MAJOR SPONSOR OF THE ENTIRE OLYMPIC GAMES ALTHOUGH THE RULES WERE ESTABLISHED BY ATLANTA'S OLYMPIC COMMITTEE SOME OF THE SPONSORSHIP POLICIES COVER THE 1994 WINTER GAMES AS WELL IN THE CASE OF SEARS RIVAL HOME DEPOT INC HEADQUARTERED IN ATLANTA BRISTLED LAST WEEK WHEN IT CAUGHT WIND OF SEARS'S PLAN TO SPONSOR INDIVIDUAL TEAMS HOME DEPOT FELT THERE WAS A POTENTIAL FOR THE HOMEIMPROVEMENT RETAILER TO BE AMBUSHED BY SEARS HOME DEPOT PAID THE ASKING PRICE OF 40 MILLION TO BE A FULLBLOWN OLYMPIC SPONSOR BUT IT FELT THAT SEARS WOULD RECEIVE THE SAME AMOUNT OF PUBLICITY AT A FRACTION OF THE COST BECAUSE OF ITS CONNECTION TO INDIVIDUAL TEAMS WE HEARD THERE WAS A POTENTIAL SITUATION WITH SEARS AND THE OLYMPICS AND WE DID THE NORMAL BUSINESS PRACTICE OF CONTACTING THE OLYMPIC COMMITTEE SAYS DICK HAMMILL SENIOR VICE PRESIDENT OF MARKETING AND ADVERTISING FOR HOME DEPOT IT IS IN THE HANDS OF THE OLYMPIC COMMITTEE TO RESOLVE AS A CONSEQUENCE SEARS WAS TOLD NO THANKS LAST WEEK BY ATLANTA CENTENNIAL OLYMPIC PROPERTIES A JOINT VENTURE BETWEEN THE US OLYMPIC COMMITTEE AND THE ATLANTA COMMITTEE FOR THE OLYMPIC GAMES ACCORDING TO A SPOKESMAN FOR ACOG SO SEARS'S PLANS FOR INSTORE PROMOTIONS AND THOUSANDS OF SPECIAL OLYMPICS PINS HAVE BEEN HALTED ASKED TO COMMENT A SPOKESMAN FOR SEARS REPLIED WE HAVEN'T ANNOUNCED ANY PROGRAM RELATED TO THE OLYMPICS SEARS DOESN'T COMMENT ON RUMORS AND SPECULATION JERRY LACE EXECUTIVE DIRECTOR OF THE US FIGURE SKATING ASSOCIATION SAYS HE IS EXTREMELY DISAPPOINTED NOT TO HAVE THE SEARS SPONSORSHIP WE THOUGHT THERE WAS A NICHE IN THE RETAIL PRODUCT CATEGORY THAT WOULD ENABLE US TO HAVE AN AGREEMENT WITH SEARS HE ADDS WE DEALT WITH SEARS IN GOOD FAITH FOR QUITE A WHILE THINKING WE HAD THAT RIGHT CRITICS OF THE NEW OLYMPIC POLICY SAY THAT INDIVIDUAL TEAMS USE THE MONEY FROM SPONSORS NOT ONLY FOR THE OLYMPICS BUT IN OTHER COMPETITIONS AS WELL IN THE YEARS BETWEEN OLYMPIC GAMES CORPORATIONS SHOULD HAVE THE RIGHT TO SPONSOR AMATEUR FEDERATIONS OF THEIR CHOICE IF IT MAKES GOOD BUSINESS SENSE AND THEY ARE SUPPORTING A WORTHY CAUSE SAYS STEPHEN DISSON PRESIDENT OF D&F CONSULTING OF WASHINGTON A CORPORATE SPONSORSHIP CONSULTANT IT ISN'T RIGHT THAT THEY ARE PREVENTED FROM DOING SO THE OLYMPIC COMMITTEE SAYS ITS ROSTER OF WORLDWIDE SPONSORSHIPS INCLUDES COCACOLA EASTMAN KODAK VISA INTERNATIONAL TIME WARNER SPECIFICALLY SPORTS ILLUSTRATED AND SOUTHERN LIVING MAGAZINES XEROX PANASONIC AND BAUSCH & LOMB US OLYMPIC SPONSORS INCLUDE HOME DEPOT NATIONSBANK SARA LEE INTERNATIONAL BUSINESS MACHINES ANHEUSERBUSCH MCDONALD'S AND SWATCH THE OLYMPIC COMMITTE ALSO MAY ELIMINATE SOCALLED SECONDTIER SPONSORS IN THE PAST COMPANIES COULD SIGN UP AS LESS EXPENSIVE SPONSORS SAY IN THE RANGE OF 5 MILLION TO 20 MILLION BUT GET FEWER MARKETING OPPORTUNITIES THIS TIME AROUND THOUGH THE OLYMPIC COMMITTEE IS CLEARLY TRYING TO GET AS MANY SPONSORS AS POSSIBLE FOR THE 40 MILLION PACKAGES THE AMBUSH OF FULL OLYMPIC SPONSORS HAS BEEN A PROBLEM FOR YEARS IN 1988 FOR EXAMPLE MCDONALD'S FORKED OVER MILLIONS TO BE THE EXCLUSIVE FASTFOOD SPONSOR OF THE US OLYMPIC COMMITTEE FOR THE 1988 WINTER AND SUMMER GAMES YET THE RESTAURANTS OF RIVAL WENDY'S INTERNATIONAL WERE PLASTERED WITH OLYMPICLIKE SYMBOLS ITS STOREFRONTS WERE FILLED WITH SKIRACING POSTERS THAT PROCLAIMED WE'LL BE THERE ITS TRAY LINERS WERE PRINTED WITH STORIES ABOUT THE OLYMPICS AND ITS NAPKINS WERE EMBELLISHED WITH WHAT LOOKED LIKE THE OLYMPIC RINGS WENDY'S WAS ABLE TO ELBOW ITS WAY INTO THE OLYMPICS BY BECOMING A PROUD SPONSOR OF ABC'S TELEVISION COVERAGE OF THE 1988 WINTER OLYMPICS AS THE COMPANY'S NAPKINS DECLARED AND ALTHOUGH WENDY'S WAS BARRED FROM DISPLAYING THE FIVERINGED OLYMPIC SYMBOL THE COMPANY USED A NEARLY IDENTICAL ABC SYMBOL INSTEAD AT THE TIME WENDY'S SAID WE FOUND ANOTHER WAY OF GETTING THE JOB DONE AT CONSIDERABLY LESS EXPENSE THAT IS PRECISELY THE KIND OF ENTERPRISE THAT OLYMPIC OFFICIALS HOPE TO STOP WE HOPE THESE CONTRACTS WILL KEEP THE FIELD CLEAR SO THAT ALL SPONSORS SUPPORTING THE OLYMPICS OVER AN EXTENDED PERIOD OF TIME WILL STAND ON THEIR OWN AND WE WILL NOT HAVE SOMEONE APPEAR AT THE FINISH LINE LOOKING LIKE A FULL SPONSOR AN OLYMPIC SPOKESMAN SAYS IT ISN'T FAIR IT NEVER WAS FAIR NOW WE'RE DOING SOMETHING ABOUT IT SEAGRAM CO MOVED ITS MARTELL COGNAC ACCOUNT WITH ESTIMATED WORLDWIDE BILLINGS OF 35 MILLION FROM OMNICOM GROUP'S DDB NEEDHAM TO WPP GROUP'S OGILVY & MATHER THE SHIFT IS A CRACK IN SEAGRAM'S DECADESLONG RELATIONSHIP WITH DDB WHICH MADISON AVENUE HAS LONG CONSIDERED UNBREACHABLE BECAUSE OF THE LONGSTANDING FRIENDSHIP BETWEEN SEAGRAM'S PRESIDENT AND CHIEF OPERATING OFFICER EDGAR BRONFMAN JR AND DDB NEEDHAM'S VICE CHAIRMAN JOHN BERNBACH DDB CONTINUES TO HANDLE SEVERAL OTHER SEAGRAM BRANDS WORLDWIDE INCLUDING CHIVAS REGAL SCOTCH MUMM CHAMPAGNE AND CROWN ROYAL WHISKEY DDB EXECUTIVES COULDN'T BE REACHED FOR COMMENT OGILVY PREVAILED FOLLOWING A WORLDWIDE PITCH BETWEEN THE TWO SHOPS THAT TOOK PLACE IN NEW YORK AND HONG KONG IN A STATEMENT SEAGRAM ATTRIBUTED THE MOVE TO SIGNIFICANT GROWTH POTENTIAL IN CHINA AND SOUTHEAST ASIA WHERE OGILVY & MATHER IS PARTICULARLY STRONG WHEN SEAGRAM ACQUIRED THE MARTELL BRAND IN 1988 IT HAD PITTED THE TWO AGENCIES AGAINST EACH OTHER THAT TIME OGILVY LOST OGILVY ALSO HANDLES SUCH SEAGRAM BRANDS AS GLENLIVET SCOTCH 7 CROWN AND SEAGRAM'S VO WHISKEYS AND SEAGRAM'S GIN OMNICOM GROUP'S TBWA ADVERTISING CREATES THE ADS FOR ABSOLUT VODKA WHICH SEAGRAM HAS WON THE RIGHT TO DISTRIBUTE STARTING NEXT YEAR HELENE CURTIS INDUSTRIES INC THE BIG CHICAGO HAIRPRODUCTS COMPANY AWARDED AN ESTIMATED 80 MILLION IN WORLDWIDE ADVERTISING BILLINGS TO THE CHICAGO OFFICE OF OMNICOM GROUP'S DDB NEEDHAM THE ACCOUNT WAS PUT UP FOR GRABS LAST MONTH IN THE MIDST OF A BATTLE FOR SHAMPOO MARKET SHARE BETWEEN CURTIS AND PROCTER & GAMBLE CO AN AD AGENCY THAT HAD WORKED FOR BOTH RIVALS SAATCHI & SAATCHI CO'S SAATCHI & SAATCHI ADVERTISING HAD TO CHOOSE SIDES INDUSTRY EXECUTIVES SAID AND SO RESIGNED FROM THE CURTIS BRANDS INCLUDING FINESSE SALON SELECTIVES AND VIBRANCE SHAMPOOS AND DEGREE ANTIPERSPIRANT CURTIS HAS BEEN HASTILY LOOKING FOR A REPLACEMENT EVER SINCE MANY LARGE INTERNATIONAL AGENCIES WERE BLOCKED FROM PURSUING THE ACCOUNT BECAUSE THEY WORK FOR COMPETITORS INDEED DDB NEEDHAM HAS TWO CLIENTS THAT MAKE SHAMPOO DIAL CORP AND JOHNSON & JOHNSON BUT SPOKESMEN FOR THOSE COMPANIES SAID THAT BECAUSE THE AGENCY DOESN'T WORK DIRECTLY ON THEIR SHAMPOOS THE HELENE CURTIS BUSINESS WOULDN'T POSE A CONFLICT ACQUISITION AGENCY HOLDING COMPANY OMNICOM GROUP ACQUIRED INTERBRAND GROUP PLC THE BRITISHBASED BRANDNAMING AND BRANDVALUATION COMPANY TERMS WEREN'T DISCLOSED JOHN WREN CHAIRMAN OF OMNICOM'S DIVERSIFIED AGENCY SERVICES GROUP SAID INTERBRAND WOULD BE MERGED JAN 1 1995 WITH OMNICOM'S SCHECHTER GROUP WHICH SPECIALIZES IN PACKAGE DESIGN AND CORPORATE IDENTITY ALVIN SCHECHTER SCHECHTER GROUP CHAIRMAN WILL HEAD THE NEW COMPANY'S US OPERATIONS JOHN MURPHY INTERBRAND CHAIRMAN WILL OVERSEE ITS OVERSEAS OPERATIONS 9312230152 931223 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ALLIED WASTE INDUSTRIES INC AN OFFERING OF 75 MILLION IN SENIOR SUBORDINATED NOTES VIA JEFFERIES & CO AND CS FIRST BOSTON EMMIS BROADCASTING CORP AN INITIAL OFFERING OF 3340000 CLASS A COMMON SHARES VIA MORGAN STANLEY & CO DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND LEHMAN BROTHERS WASHINGTON WATER POWER CO A SHELF OFFERING OF UP TO 250 MILLION OF FIRST MORTGAGE BONDS 9312230151 931223 HOLIDAY NOTICE THE WALL STREET JOURNAL WILL NOT BE PUBLISHED TOMORROW CHRISTMAS EVE 9312230150 931223 BUSINESS BRIEF GE LEADS GROUP IN ACCORD TO ACQUIRE ITALY'S NUOVO PIGNONE FOR 420 MILLION FAIRFIELD CONN A US GROUP LED BY GENERAL ELECTRIC CO AGREED TO ACQUIRE 69 OF ITALY'S STATEOWNED ELECTRICALEQUIPMENT COMPANY NUOVO PIGNONE IN A TRANSACTION VALUED AT 420 MILLION THE SALE BY THE ENERGY CONGLOMERATE ENTE NAZIONALE IDROCARBURI OR ENI IS PART OF ITALY'S PRIVATIZATION EFFORTS THE TRANSACTION WILL EXPAND THE AMERICAN COMPANIES' PRESENCE IN EUROPE RUSSIA NORTH AFRICA AND THE MIDDLE EAST THE COUNTRIES WHERE THE ITALIAN COMPANY EITHER MAKES OR SELLS ITS PRODUCTS GENERAL ELECTRIC IN FAIRFIELD CONN WILL OWN A 25 STAKE VALUED AT 150 MILLION THE OTHER TWO COMPANIES IN THE GROUP ARE INGERSOLLRAND CO IN WOODCLIFF LAKE NJ AND DRESSER INDUSTRIES INC IN DALLAS THEY WILL EACH OWN A 12 INTEREST WITH EACH PAYING ABOUT 73 MILLION FOR THEIR SHARE SEVERAL ITALIAN BANKS TOGETHER WILL TAKE A 20 STAKE ANOTHER 20 WILL BE OWNED BY ENI AND THE REMAINING 11 BY THE PUBLIC THE TRANSACTION WHICH IS SUBJECT TO ANTITRUST REVIEW IS SCHEDULED TO BE COMPLETED IN THE FIRST HALF OF NEXT YEAR GENERAL ELECTRIC HAS HAD A LONG BUSINESS ASSOCIATION WITH NUOVO PIGNONE FOR NEARLY 30 YEARS GE HAS LICENSED ITS POWERGENERATION TECHNOLOGY TO IT AND HAS ALSO MANUFACTURED VARIOUS EQUIPMENT IN PARTNERSHIP WITH THE ITALIAN COMPANY GE SAID THE ACQUISITION WILL GIVE IT A GLOBAL PLAY ITS POWERGENERATION SYSTEMS DIVISION WHICH LAST YEAR HAD SALES OF 637 BILLION DESIGNS AND MAKES STEAM AND GASTURBINE GENERATORS AND POWERDELIVERY EQUIPMENT AMONG OTHER PRODUCTS THE ACQUISITION FOLLOWS CLOSELY THE ITALIAN CONCERN'S RECEIPT OF A 16 BILLION CONTRACT TO SUPPLY PIPELINE EQUIPMENT TO RUSSIA WHERE IT HAS A STRONG PRESENCE ITS STRONG RESEARCH AND DEVELOPMENT PROGRAMS ALSO MAKE THE COMPANY AN ATTRACTIVE ACQUISITION GE SAID NUOVO PIGNONE'S SALES THIS YEAR ARE ESTIMATED TO BE 13 BILLION GE SAID IT DECIDED TO FORM A GROUP FOR THE ACQUISITION IN ORDER TAKE ADVANTAGE OF EACH OTHER'S STRENGTHS IN THE MARKET THE PARTNERS COMPLEMENT EACH OTHER WITH DIFFERENT PRODUCT LINES SAID A GE SPOKESMAN IT'S A VERY STRONG TEAM NUOVO PIGNONE WILL CONTINUE TO OPERATE INDEPENDENTLY AND WILL MAINTAIN AN INDEPENDENT SALES AND SERVICE NETWORK GE SAID JOHN J MURPHY CHAIRMAN OF DRESSER SAID HIS COMPANY'S MOVE IS PART OF A STRATEGY TO POSITION DRESSER IN THE INTERNATIONAL MARKETPLACE AND BROADEN ITS PRODUCT LINES AND MARKET REACH THE COMPANY MAKES ENGINEERED PRODUCTS FOR OIL AND GAS EXPLORATION GAS DISTRIBUTION AND POWER GENERATION JAMES PERRELLA CHAIRMAN OF INGERSOLLRAND DESCRIBED HIS COMPANY'S PARTICIPATION AS A LONGTERM INVESTMENT AIMED AT BROADENING ITS MARKETS THE COMPANY MAKES INDUSTRIAL MACHINERY AND CONSTRUCTION EQUIPMENT 9312230149 931223 SHERWINWILLIAMS'S PROFIT PICTURE IS ROSY BY RALPH E WINTER SPECIAL TO THE WALL STREET JOURNAL CLEVELAND SHERWINWILLIAMS CO IS WINDING UP 1993 WITH STRONG FOURTHQUARTER SALES AND EXPECTS A 15TH CONSECUTIVE YEAR OF HIGHER PROFITS JOHN G BREEN CHAIRMAN AND CHIEF EXECUTIVE SAID AIDED BY FAVORABLE WEATHER LOW INTEREST RATES AND AN IMPROVING ECONOMY THE PAINT MANUFACTURER EXPECTS SALES TO RISE ABOUT 9 IN THE CURRENT QUARTER MR BREEN SAID IN AN INTERVIEW AS A RESULT NET INCOME FOR THE YEAR IS LIKELY TO CLIMB TO ABOUT 185 A SHARE NEAR THE HIGH END OF MOST ANALYSTS' ESTIMATES MR BREEN SAID IN 1992 SHERWINWILLIAMS EARNED 1446 MILLION OR 163 A SHARE EXCLUDING UNUSAL ITEMS MR BREEN'S COMMENTS INDICATE FOURTHQUARTER NET OF ABOUT 30 CENTS A SHARE UP FROM 26 CENTS A YEAR EARLIER NET INCOME FOR ALL OF 1992 AFTER CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING FOR INCOME TAXES AND POSTRETIREMENT BENEFITS WAS 629 MILLION OR 71 CENTS A SHARE THE COMPANY DOESN'T ANTICIPATE ANY SIGNIFICANT UNUSUAL ITEMS FOR 1993 SALES FOR 1993 WILL BE VERY CLOSE TO 3 BILLION MR BREEN SAID UP FROM 275 BILLION LAST YEAR SHERWINWILLIAMS INCREASED ITS SHARE OF THE US PAINT AND COATINGS BUSINESS THIS YEAR THE EXECUTIVE SAID ITS SALES GAIN WAS AT LEAST DOUBLE THE GROWTH RATE FOR THE PAINT INDUSTRY AS A WHOLE HE SAID BASED ON GOVERNMENT FIGURES FOR THE FIRST NINE MONTHS MR BREEN SAID THE GAIN WAS ACHIEVED THROUGH A COMBINATION OF NEW PRODUCTS AND IMPROVEMENTS IN EXISTING COATINGS HIGHER PRODUCTIVITY BY SALES REPRESENTATIVES AND INCREASED MARKET PENETRATION BY THE COMPANY'S PAINT BRANDS HIGHER SPENDING FOR TELEVISION ADVERTISING HELPED STRENGTHEN THE COMPANY'S MARKET POSITION HE ADDED ALSO NEARLY A THIRD OF THE COMPANY'S 2040 STORES WERE REMODELED OR REMERCHANDISED TO MAKE THEM EASIER FOR THE CUSTOMER TO SHOP AND MORE EFFICIENT FOR STORE EMPLOYEES HE SAID MR BREEN EXPECTS FURTHER SALES AND EARNINGS GAINS IN 1994 UNLESS THERE'S A SHARP RISE IN INTEREST RATES OR OTHER EVENT THAT HURTS THE NATION'S ECONOMIC EXPANSION HE SAID HE DOESN'T EXPECT A MAJOR CHANGE IN INTEREST RATES NEXT YEAR WHILE IT'S TOO EARLY TO MAKE A PRECISE 1994 EARNINGS ESTIMATE MR BREEN SAID HE'S COMFORTABLE WITH ANALYSTS' ESTIMATES IN THE RANGE OF 2 TO 205 A SHARE HE SAID MANAGEMENT WILL RECOMMEND A DIVIDEND INCREASE AT THE FEBRUARY BOARD MEETING IN KEEPING WITH THE LONGTERM POLICY OF PAYING OUT 30 OF THE PRIOR YEAR'S EARNINGS THAT WOULD INDICATE AN INCREASE OF ONE CENT OR 15 CENTS IN THE QUARTERLY RATE CURRENTLY 125 CENTS A SHARE SHERWINWILLIAMS LOST SOME OF ITS BUSINESS WITH HOME DEPOT INC WHEN THE RETAIL CHAIN BEGAN USING A REGIONAL BRAND PAINT IN ITS SOUTHERN CALIFORNIA STORES MR BREEN SAID BUT HE SAID HE'S CONFIDENT THAT HOME DEPOT WILL REMAIN A MAJOR CUSTOMER IN OTHER REGIONS AND HE'S HOPEFUL THAT SHERWINWILLIAMS EVENTUALLY CAN REGAIN THE SOUTHERN CALIFORNIA BUSINESS ALSO WALMART STORES INC IS DROPPING THE SHERWINWILLIAMS KEMTONE BRAND FROM THE APPROXIMATELY 40 OF THE WALMART STORES THAT WERE OFFERING IT HE SAID THE WALMART CHANGE ISN'T A BIG SALES LOSS FOR SHERWINWILLIAMS HOWEVER HE SAID BECAUSE MOST OF THE BIG RETAILER'S PAINT SALES ARE IN PRIVATELABEL PRODUCTS SHERWINWILLIAMS PICKED UP ADDITIONAL BUSINESS FROM OTHER RETAILERS INCLUDING SEARS ROEBUCK & CO KMART CORP AND KMART'S BUILDERS SQUARE STORES MR BREEN SAID HE SAID HE EXPECTS A CONTINUED RISE IN MARKET SHARE NEXT YEAR SHERWINWILLIAMS CONTINUES TO BENEFIT FROM LOWER MORTGAGE RATES HE SAID FOR ONE THING LOWER RATES HAVE BOOSTED HOME CONSTRUCTION TO THE HIGHEST LEVEL IN ALMOST FOUR YEARS WHICH INCREASED SALES OF PAINT VARNISH AND OTHER COATINGS THE INCREASE IN SALES OF EXISTING HOMES STEMMING FROM THE DROP IN INTEREST RATES ALSO STIMULATED PAINT SALES MR BREEN SAID THE SELLER OFTEN DOES SOME PAINTING TO MAKE THE HOME MORE ATTRACTIVE AND THE BUYER FREQUENTLY REDECORATES AT LEAST A FEW ROOMS TO REFLECT THE FAMILY'S TASTES EVEN FAMILIES WHO REFINANCE THEIR EXISTING HOMES BUY PAINT MR BREEN SAID REFINANCING USUALLY REDUCES MONTHLY MORTGAGE PAYMENTS AND SOME OF THE FREE CASH IS INVESTED IN HOME REDECORATING SHERWINWILLIAMS PAINT STORES WHICH ACCOUNT FOR NEARLY TWOTHIRDS OF THE COMPANY'S VOLUME WILL SHOW A FOURTHQUARTER SALES GAIN IN THE 9 AREA MR BREEN SAID WHICH WOULD BE IN LINE WITH OR SLIGHTLY STRONGER THAN THE 85 GAIN FOR THE FIRST NINE MONTHS PRICE INCREASES ACCOUNTED FOR ONLY A SMALL PART OF THAT HE SAID WITH AVERAGE PRICES AT THE PAINT STORES UP LESS THAN 1 FROM A YEAR AGO SALES TO PAINTING CONTRACTOR THROUGH THE STORES HAVE BEEN STRONG ALL YEAR HE SAID AND SALES TO DOITYOURSELF CUSTOMERS PICKED UP IN THE LAST FEW MONTHS THE COMPANY WILL OPEN 30 STORES IN 1993 CLOSE 16 RELOCATE 54 AND REMODEL 78 STORES MR BREEN SAID ANOTHER NEARLY 500 STORES HAVE BEEN REMERCHANDISED WHICH INCLUDES A CHANGE IN THE STORE LAYOUT A NEW COLOR SCHEME AND IMPROVED STAFFING AND EQUIPMENT THE COATINGS SEGMENT WHICH MANUFACTURES THE PAINT AND OTHER COATINGS AND SELLS TO OTHER RETAILERS INDUSTRIAL USERS AND OTHER MARKETS ALSO IS HAVING A STRONG FOURTH QUARTER MR BREEN SAID WITH SALES GAINS IN THE HIGH SINGLEDIGITS THE UNIT INCREASED MARKET PENETRATION IN AUTOMOTIVE PAINTS AND AEROSOL PRODUCTS AS WELL AS IN CONSUMER BRAND PAINTS HE SAID WHILE IT'S DIFFICULT TO GET PRICE INCREASES FOR COATINGS MATERIALS PRICES ALSO HAVE BEEN VERY STABLE FOR ABOUT TWO YEARS MR BREEN SAID HE ADDED THAT HE EXPECTS 1994 MATERIALS PRICES TO RANGE FROM FLAT TO 1 OR 2 HIGHER THE COMPANY'S CAPITAL SPENDING FOR 1993 WILL BE A LITTLE MORE THAN 70 MILLION UP SLIGHTLY FROM 69 MILLION IN 1992 MR BREEN SAID NEXT YEAR'S OUTLAYS ARE EXPECTED TO BE ABOUT THE SAME AS THIS YEAR'S HE SAID SHERWINWILLIAMS IS WORKING ON SEVERAL ACQUISITIONS MR BREEN SAID BUT THERE'S NOTHING IMMINENT HE SAID THE COMPANY IS INTERESTED IN BUYING BUSINESSES THAT WOULD EXPAND ITS COATINGS BUSINESS 9312230148 931223 CHEMTRAK 4THPERIOD REVENUE SUNNYVALE CALIF CHEMTRAK INC SAID REVENUE IN THE FOURTH QUARTER WILL BE ABOUT 350000 LESS THAN IN PREVIOUS QUARTERS THIS YEAR THE COMPANY WHICH MAKES DIAGNOSTICTESTING PRODUCTS ATTRIBUTED THE SHORTFALL TO DELAYS IN LAUNCHING PRODUCTS IN FOREIGN MARKETS COMBINED WITH A SLOWDOWN IN ORDERS FROM CERTAIN UNSPECIFIED CUSTOMERS IN THE YEAREARLIER FOURTH QUARTER CHEMTRAK REPORTED REVENUE OF 17 MILLION AND A NET LOSS OF 13 MILLION OR 15 CENTS A SHARE CHEMTRAK ALSO ANNOUNCED THAT IT COMPLETED AGREEMENTS WITH MONSANTO CO'S SEARLE UNIT FOR CERTAIN INTERNATIONAL MARKETING RIGHTS TO ITS ACCUMETER HOMECHOLESTEROL TEST 9312230147 931223 INTERNATIONAL FRENCH BUSINESSMAN WITH ROLES IN POLITICS SPORTS FACES CHARGES SPECIAL TO THE WALL STREET JOURNAL PARIS BERNARD TAPIE THE FLAMBOYANT BUSINESSMAN SPORTS MAGNATE AND MEMBER OF FRENCH PARLIAMENT WAS CHARGED WITH MISUSE OF CORPORATE FUNDS IN A CASE THAT THREATENS HIS POLITICAL CAREER MR TAPIE OWNER OF THE SUCCESSFUL BUT SCANDALPLAGUED OLYMPIQUE MARSEILLE SOCCER TEAM WAS CHARGED IN CONNECTION WITH AN INVESTIGATION INTO A SCALESMANUFACTURING COMPANY OWNED BY HIS INVESTMENT GROUP JUDGE BENOIT PERSYN CHARGED MR TAPIE WITH COMPLICITY IN THE ALLEGED USE OF CORPORATE FUNDS FOR A COLLEAGUE'S POLITICAL CAMPAIGN AND FOR THE PURCHASE OF ENGLISH FORWARD CHRIS WADDLE BY OLYMPIQUE MARSEILLE EARLIER THIS MONTH THE CONSERVATIVEDOMINATED NATIONAL ASSEMBLY VOTED OVERWHELMINGLY TO STRIP MR TAPIE WHO IS HEAD OF THE RADICAL MOVEMENT OF THE LEFT A SMALL PARTY ASSOCIATED WITH THE SOCIALISTS OF HIS PARLIAMENTARY IMMUNITY IN PLACE WHEN PARLIAMENT IS IN SESSION MR TAPIE IS UNDER SCRUTINY FOR HIS MANAGEMENT OF TESTUT A MONEYLOSING SCALE MAKER OWNED BY TAPIE'S INVESTMENT GROUP BERNARD TAPIE FINANCE TESTUT'S EXDIRECTOR GENERAL BRUNO FLOCCO CLAIMS A LOAN MADE TO BUY ANOTHER COMPANY ACTUALLY WENT TOWARD MR TAPIE'S POLITICAL EXPENSES AND TO PURCHASE WADDLE FOR 25 MILLION FRANCS 43 MILLION ELIE FELLOUS TESTUT'S NEW BOSS AND A TOP MAN AT BERNARD TAPIE FINANCE COUNTERCHARGES THAT MR FLOCCO EMBEZZLED THREE MILLION FRANCS MR TAPIE HAS MAINTAINED THE CHARGES AGAINST HIM ARE PART OF A CAMPAIGN AGAINST HIM BY POLITICAL ENEMIES 9312230146 931223 BUSINESS BRIEF MOODY'S CUTS RATINGS ON NYNEX DEBT CITES EXPECTED BORROWING NEW YORK MOODY'S INVESTORS SERVICE INC DOWNGRADED RATINGS ON ABOUT 25 BILLION OF NYNEX CORP'S DEBT ON THE EXPECTATION THAT THE COMPANY WILL CONTINUE TO BORROW TO FINANCE NEW INVESTMENTS THE DOWNGRADE COMPLETES A REVIEW BEGUN IN OCTOBER WHEN NYNEX SAID IT PLANNED TO INVEST AS MUCH AS 12 BILLION IN VIACOM INC THAT IS EXPECTED TO BE FUNDED TO A GREAT EXTENT BY DEBT THE LONGTERM DEBT OF NYNEX AND ITS AFFILIATES WAS LOWERED TO SINGLEA3 FROM SINGLEA2 MOODY'S SAID THE RATINGS AGENCY HAD EARLIER SAID THAT MAJOR TELEPHONE COMPANIES WHICH HAVE LONG ENJOYED THE ABILITY TO BORROW LARGE AMOUNTS OF MONEY AT LOW COST RISK LOWER DEBT RATINGS AS THEY MAKE BIG INVESTMENTS IN NEW NETWORK TECHNOLOGIES LOWER RATINGS COULD MAKE RAISING CAPITAL MORE EXPENSIVE AT A TIME WHEN BORROWING DEMANDS TO FUND NEW INVESTMENTS ARE SHARPLY INCREASING THE AVERAGE RATING BY MOODY'S FOR TELEPHONE OPERATING COMPANIES IS DOUBLEA2 MOODY'S DOWNGRADED NYNEX'S DEBENTURES AND MEDIUMTERM NOTES TO SINGLEA3 FROM SINGLEA2 AND SHORTTERM RATINGS FOR COMMERCIAL PAPER TO PRIME2 FROM PRIME1 DEBT RATINGS OF NYNEX'S TELEPHONE UNITS HADN'T BEEN PLACED UNDER REVIEW EARLIER THIS WEEK STATE REGULATORS AGREED ON A 146 MILLION RATE REDUCTION FOR NEW YORK TELEPHONE CO A NYNEX UNIT THE RATINGS AGENCY SAID NYNEX'S BORROWING NEEDS ARE LIKELY TO GROW IN COMING YEARS THE TELECOMMUNICATIONS COMPANY IS EXPECTED TO BID FOR LICENSES FOR PERSONAL COMMUNICATIONS SYSTEMS SOMETIME NEXT YEAR AND WOULD HAVE TO MAKE LARGE OUTLAYS TO BUILD AN INFRASTRUCTURE TO SELL WIRELESS SERVICES ON POCKET PHONES AND NYNEX'S PROJECTS IN SOUTHEAST ASIA AND THE CONSTRUCTION OF A CABLETELEVISION AND TELEPHONE NETWORK IN THE UNITED KINGDOM CONTINUE TO EXPAND THE RATINGS AGENCY NOTED 9312230145 931223 LETTERS TO THE EDITOR TOTAL WAR' IN THE STONE AGE IN REGARD TO JOHN LEHMAN'S REVIEW OF A HISTORY OF WARFARE BY JOHN KEEGAN FROM THE SPARTANS TO MAD LEISURE & ARTS DEC 1 ACCORDING TO THE REVIEW MR KEEGAN CLAIMS THAT PRIMITIVE WARFARE HAS BEEN RITUALISTIC AND ALWAYS LIMITED IN SCOPE THE DEVASTATION OF TOTAL WAR ACCORDING TO MR LEMAN'S SUMMARY IS A RELATIVELY MODERN PHENOMENON THIS IS A COMMON MISCONCEPTION A LENGTHY TRANSCRIPT OF AN INTERVIEW WITH A MEMBER OF THE SOUTH AMERICAN TAULAPANG TRIBE DESCRIBED HOW HE AND HIS FELLOW WARRIORS SET OFF FOR AN ENEMY VILLAGE WITH TOTAL WARFARE IE GENOCIDAL EXTERMINATION IN MIND THE TAULAPANG BURNED EVERY FAMILY IN ITS HUT KILLING ALL THE CHILDREN ALL THE WOMEN SAVE TWO USED BY THE ATTACKERS FOR SEXUAL PURPOSES AND EVERY MAN THEN MARCHED HOME SHOUTING A JOYOUS HEIHEIHEIHEIHEI NUMEROUS OTHER ACCOUNTS ATTEST TO SIMILAR PRELITERATE ATROCITIES THAT WOULD HAVE DONE CLAUSEWITZ PROUD ANTHROPOLOGISTS WILLIAM DIVALE AND MARVIN HARRIS SCRUTINIZED DATA FROM 561 PRIMITIVE TRIBES AND DISCOVERED THAT WITHIN THIS SAMPLE 21 OF THE MALES WERE KILLED VIOLENTLY BEFORE THEY ENDED ADOLESCENCE THE PERCENTAGE OF THE SLAUGHTERED SKYROCKETS IF YOU INCLUDE THE WOMEN AND CHILDREN WIPED OUT BY INDIGENOUS PEOPLES IN TAULAPANGSTYLE EPISODES IF OUR POSTCLAUSEWITZIAN CIVILIZATION RACKED UP A SIMILAR RATE OF FATALITIES ROUGHLY 720 MILLION MODERN HUMANS WOULD DIE OF WAR OR HOMICIDE EVERY GENERATION COMPARE THIS WITH THE 55 MILLION WHO PERISHED IN WORLD WAR II AND THE BLOODLETTINGS OF THE CURRENT CENTURY APPALLING AS THEY'VE BEEN ARE LESS THAN A TENTH WHAT THEY'D AMOUNT TO UNDER PRIMITIVE CONDITIONS MESSRS LEHMAN AND KEEGAN'S SECOND ERROR WAS THEIR SEEMINGLY JOINT STATEMENT THAT KARL MARX IS THE IDEOLOGICAL FATHER OF THE RUSSIAN REVOLUTION AS HARRISON SALISBURY DEMONSTRATED IN HIS BLACK NIGHT WHITE SNOW RUSSIA'S REVOLUTIONS 19051917 THE 1917 REVOLUTION WAS UNDER WAY FOR SOME TIME BEFORE THE MARXISTS LED BY LENIN RECOGNIZED THE SIGNIFICANCE OF THE UPHEAVAL LENIN FINALLY MADE HIS WAY FROM SWITZERLAND TO MOSCOW TWO MONTHS AFTER THE REVOLUTION BEGAN A FULLY FUNCTIONAL DEMOCRATIC NONMARXIST REVOLUTIONARY GOVERNMENT HAD ALREADY BEEN INSTALLED IT TOOK MORE THAN SIX MONTHS AND THE USE OF CONSIDERABLE FORCE FOR LENIN AND HIS COHORTS TO OVERTURN DEMOCRACY AND SEIZE THE REINS OF POWER 9312230144 931223 TECHNOLOGY & MEDICINE DELL WILL RESELL NOTEBOOK PCS MADE BY AST BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP PLANS TO ANNOUNCE EARLY NEXT YEAR THAT IT WILL RESELL NOTEBOOK COMPUTERS MADE BY RIVAL AST RESEARCH INC AS PART OF ITS STRATEGY TO REGAIN ITS FOOTING IN COMPUTING'S HOTTEST SEGMENT DELL A MAINLY MAILORDER COMPUTER VENDOR BASED IN AUSTIN TEXAS HAS BEEN WITHOUT A NOTEBOOK PRODUCT SINCE MAY WHEN IT SCRAPPED A NEW LINE OF NOTEBOOKS AND CANCELED DEVELOPMENT WORK ON OTHER PRODUCTS THE DECISION HELPED PRODUCE DELL'S FIRST QUARTERLY LOSS AND MADE THE COMPANY A NONENTITY IN A CRITICAL NICHE OF THE PERSONALCOMPUTER MARKET UNDER AN AGREEMENT THAT COULD BE ANNOUNCED AS EARLY AS NEXT MONTH DELL WILL RESELL A SLIGHTLY MODIFIED VERSION OF AST'S BRAVO LINE UNDER ITS OWN NAME ACCORDING TO PEOPLE CLOSE TO THE SITUATION NEITHER DELL NOR AST WOULD COMMENT ON THE AGREEMENT BY CHOOSING AST BASED IN IRVINE CALIF DELL IS PLACING A SAFE BET ANALYSTS SAY WHILE AST HASN'T HAD A NOTEBOOK HOME RUN LIKE APPLE COMPUTER INC'S POWERBOOK OR INTERNATIONAL BUSINESS MACHINES CORP'S THINKPAD ITS MACHINES HAVE RECEIVED FAVORABLE REVIEWS IN COMPUTER TRADE PUBLICATIONS AND RANK AMONG THE NATION'S FIVE TOPSELLING NOTEBOOK BRANDS WITH ABOUT 137000 MACHINES SOLD IN THE FIRST NINE MONTHS OF THIS YEAR DELL HOPES TO ATTRACT NOVICE COMPUTER USERS WITH THE ENTRYLEVEL MACHINES FROM AST THE COMPANY ALSO HOPES TO WIN BACK RETAIL SHELF SPACE IT LOST DURING ITS ABSENCE FROM THE MARKET WHAT THEY'RE TRYING TO DO IS REESTABLISH THEIR PRESENCE SAID JOHN DUNKLE PRESIDENT OF WORKGROUP TECHNOLOGIES INC A TECHNOLOGY CONSULTING FIRM IN HAMPTON NH WHAT THEY NEED IS A PLACEHOLDER IN NOTEBOOKS BEYOND THAT HOWEVER DELL IS ALSO DESIGNING A SEPARATE LINE OF NOTEBOOK COMPUTERS THAT WILL BE INTRODUCED IN THE SECOND QUARTER THOSE MACHINES WILL BE PITCHED AS TOPOFTHELINE PERFORMANCE COMPUTERS EQUIPPED WITH WIRELESS COMMUNICATIONS CAPABILITIES ADVANCED COLOR SCREENS AND ULTRASLIM DESIGNS SONY CORP CONFIRMED YESTERDAY THAT IT IS NEGOTIATING WITH DELL TO BUILD THOSE MACHINES ALTHOUGH THE JAPANESE ELECTRONICS GIANT HAS STUMBLED IN PREVIOUS ATTEMPTS TO BREAK INTO THE PC BUSINESS IT HAS LONG BEEN A SUPPLIER OF DELL COMPONENTS SUCH AS DISK DRIVES AND MONITORS GERRY PURDY A PARTNER AT PACIFIC GROUP A CUPERTINO CALIF CONSULTING FIRM SAID THAT IN NOTEBOOKS UNLIKE COMMODITY DESKTOP COMPUTERS IT'S STILL POSSIBLE FOR A COMPANY SUCH AS DELL TO QUICKLY RECOVER FROM ITS STUMBLES THERE'S AN AWFUL LOT OF ROOM LEFT MR PURDY SAID EVERYBODY STILL HAS A WAY TO GO TO OFFER PEOPLE WHAT THEY WANT IN NOTEBOOKS 9312230143 931223 UNIMARTS EXPECTS EARNINGS INCREASE IN ITS FIRST QUARTER BY RANDY MYER SPECIAL TO THE WALL STREET JOURNAL STATE COLLEGE PA UNIMARTS INC EXPECTS PERSHARE EARNINGS FOR THE FIRST QUARTER ENDING DEC 30 OF ABOUT 16 CENTS OR 17 CENTS UP FROM 15 CENTS A YEAR EARLIER ACCORDING TO HENRY D SAHAKIAN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER THE COMPANY POSTED RECORD QUARTERLY EARNINGS OF 17 CENTS A SHARE IN THE FOURTH QUARTER ENDED SEPT 30 MR SAHAKIAN SAID IN AN INTERVIEW THE EARNINGS GAIN IN THE FISCAL 1994 FIRST QUARTER WILL REFLECT CONTINUED STRONG GASOLINE AND GENERAL MERCHANDISE SALES AT THE COMPANY'S CHAIN OF 437 CONVENIENCE STORES AS A RESULT OF PRICECUTTING BY CIGARETTE MANUFACTURERS HE SAID GENERAL MERCHANDISE SALES AT STORES OPEN A YEAR OR MORE WILL BE DOWN ABOUT 1 IN THE CURRENT QUARTER FROM A YEAR EARLIER WITHOUT THE DECLINE IN CIGARETTE PRICES HE SAID GENERAL MERCHANDISE SALES ON A SAMESTORE BASIS WOULD BE UP ABOUT 3 CIGARETTES ACCOUNT FOR ABOUT 27 OF UNIMARTS' GENERAL MERCHANDISE SALES MR SAHAKIAN SAID MR SAHAKIAN SAID UNIMARTS PLANS TO REPORT ITS FIRSTQUARTER RESULTS DURING THE THIRD WEEK OF JANUARY MR SAHAKIAN SAID THAT UNIMARTS WILL PROBABLY CLOSE ABOUT A HALF DOZEN OF ITS WEAKEST CONVENIENCE STORES IN FISCAL 1994 BUT THAT THE COMPANY CONTINUES TO KEEP ITS EYES PEELED FOR OTHER STORES THAT WOULD MAKE ATTRACTIVE ACQUISITION TARGETS IN 1991 THE COMPANY BOUGHT 140 CONVENIENCE STORES FROM GETTY PETROLEUM CORP MR SAHAKIAN DECLINED TO ELABORATE ON THE COMPANY'S ACQUISITION PLANS MEANTIME HE SAID UNIMARTS PLANS TO CONTINUE REDUCING ITS DEBT AND EXPANDING ITS CONVENIENCE STORE FASTFOOD OFFERINGS MR SAHAKIAN SAID THE COMPANY HOPES TO PARE ITS SENIOR DEBT BY ABOUT 7 MILLION DURING FISCAL 1994 AND HAS PAID DOWN 25 MILLION OF THAT IN THE FIRST QUARTER THE COMPANY REDUCED ITS SENIOR DEBT BY ABOUT 6 MILLION DURING FISCAL 1993 TO THE 40 MILLION LEVEL IN THE COMPANY'S CONVENIENCE STORES FAST FOOD IS BECOMING AN INCREASINGLY IMPORTANT PART OF THE SALES PICTURE ACCOUNTING FOR ABOUT 17 OF GENERAL MERCHANDISE SALES AND MR SAHAKIAN SAID THE COMPANY BELIEVES IT CAN BOOST THAT TO 25 WITHIN TWO YEARS TO HELP IT REACH THAT GOAL THE COMPANY HAS BEGUN TO OFFER AN EXPANDED LINE OF CHICKEN ITEMS AND IT RECENTLY AGREED TO TEST THE SALE OF BLIMPIE INTERNATIONAL INC'S BLIMPIE'S FRESHMADE SANDWICHES IN FIVE STORES DURING FISCAL 1994 WE WILL OPERATE AS BLIMPIE'S FRANCHISEE IN THOSE STORES MR SAHAKIAN SAID WE HAVE SOME ADVANTAGES IN THAT WE DON'T NEED A SEPARATE PLANT OR ADDITIONAL PEOPLE TO DO IT THIS WILL GIVE US A BRANDNAME FRESH SANDWICH THAT WILL BE MADE TO OUR CUSTOMER'S ORDER 9312230142 931201 LEISURE & ARTS BOOKSHELF FROM THE SPARTANS TO MAD BY JOHN LEHMAN JOHN KEEGAN IS A THOUGHTFUL HISTORIAN AND A FINE STORYTELLER WHO HAS SPENT MOST OF HIS PROFESSIONAL LIFE AMONG WARRIORS AT ROYAL MILITARY ACADEMY SANDHURST THE COMBINATION HAS PRODUCED SOME EXCELLENT AND CONTROVERSIAL BOOKS LIKE THE FACE OF BATTLE AND THE MASK OF COMMAND THEY ARE FULL OF PROVOCATION AND INSIGHT AND AN AMBROSE BIERCELIKE DELIGHT IN SHOCKING THE SQUEAMISH BY CASUALLY INFORMING THEM FOR INSTANCE THAT A MAJOR CHALLENGE IN COMBAT MEDICINE IS DIGGING OUT FROM THE WOUNDS THE TEETH AND BONE FRAGMENTS OF BLASTED COMRADES MR KEEGAN'S NEW BOOK IS MODESTLY TITLED A HISTORY OF WARFARE KNOPF 432 PAGES 2750 AND PRETENDS TO NO EXHAUSTIVENESS OR GRAND ENCOMPASSING THEORY IT IS NEVERTHELESS AMBITIOUS ENOUGH AND SUCCEEDS IN EXPLAINING MANY USEFUL THINGS WITH MORE THAN A FEW GLITTERING INSIGHTS HE BEGINS WITH DESCRIPTIONS OF VIOLENCE AND WARMAKING IN EARLIER TIMES AND IN MODERN PRIMITIVES HE FINDS IT SAVAGE ENOUGH BUT OFTEN RITUALISTIC AND ALWAYS LIMITED IN SCOPE EXAMINING THE WAR PRACTICES OF THE OTTOMAN JANISSARIES THE POLYNESIANS OF EASTER ISLAND THE ZULU AND THE SAMURAI HE FINDS THEM REMOTE FROM THE WEST'S RELIANCE ON THE TOTAL WAR CONCEPTS SO STIFFLY EMBODIED BY THE 19TH CENTURY PRUSSIAN GENERAL KARL VON CLAUSEWITZ MR KEEGAN THINKS THAT CLAUSEWITZ'S IDEA OF WAR AS THE CONTINUATION OF POLITICS BY OTHER MEANS IS INCOMPLETE PAROCHIAL AND ULTIMATELY MISLEADING HIS INDICTMENT OF THE 19THCENTURY PRUSSIAN IS DEVASTATING AND CONVINCING AND IS THE MAIN THEME OF THE BOOK HE TRACES HOW THE MODERN IDEOLOGY OF CLAUSEWITZ AND TOTAL WAR EVOLVED FROM ANTIQUITY FROM THE ASSYRIANS CAME MILITARY HIERARCHY AND ORGANIZATION WHICH PASSED TO THE GREEKS WHO PERFECTED FACETOFACE BATTLE IN THE PHALANX ROME CREATED THE FIRST PERMANENT CAREER ARMY AND THE CONCEPT OF ORGANIZED LOGISTICS AND ENGINEERING 10000 MILES OF ROADS IN NORTH AFRICA ALONE THE MEDIEVAL KNIGHTLY ORDERS BECAME THE PROTOTYPE FOR THE ELITE PRUSSIAN REGIMENTS OF FREDERICK THE GREAT EMULATED BY ALL SUBSEQUENT EUROPEAN ARMIES TO THIS SYSTEM NAPOLEON ADDED UNIVERSAL CONSCRIPTION AND TRULY MASS WARFARE ON THE BASIS OF HIS OWN SERVICE IN THE NAPOLEONIC WARS CLAUSEWITZ FASHIONED HIS THEORIES WHEN GENERAL VON MOLTKE GAVE CREDIT TO CLAUSEWITZ FOR HIS BRILLIANT VICTORY OVER THE AUSTRIAN AND FRENCH EMPIRES IN 1871 THE COURSE OF HISTORY WAS CHANGED CLAUSEWITZ'S BOOK ON WAR BECAME THE BIBLE OF ARMY COLLEGES AND ACADEMIES THROUGHOUT EUROPE AND THE US MR KEEGAN CONVINCINGLY PROPOSES CLAUSEWITZ AS THE IDEOLOGICAL FATHER OF WORLD WAR I IN THE WAY KARL MARX IS THE IDEOLOGICAL FATHER OF THE RUSSIAN REVOLUTION NOT SURPRISINGLY HITLER WHO DEFINITELY DID NOT DISTINGUISH BETWEEN WAR AND POLITICS AS SEPARATE ACTIVITIES FONDLY INVOKED THE GREAT CLAUSEWITZ WHEN HE WROTE HIS FINAL TESTAMENT IN THE BUNKER LARGELY SEPARATE FROM THIS MARCH TO TOTAL WAR WAS THE COMBAT TRADITION OF THE HORSE PEOPLES OF THE STEPPES FROM THE FOURTH CENTURY TO THE FALL OF THE OTTOMAN EMPIRE IN 1918 THEY BATTERED EUROPE IN SUCCESSIVE WAVES THEIR MINDS AS WELL AS THEIR WEAPONS WERE AGENTS OF TERROR AND THE TERROR THEY SPREAD REMAINS A MEMORY TO THIS DAY MR KEEGAN WRITES AS GENGHIS KHAN CHEERFULLY PUT IT MAN'S GREATEST GOOD FORTUNE IS TO CHASE AND DEFEAT HIS ENEMY SEIZE HIS TOTAL POSSESSIONS LEAVE HIS MARRIED WOMEN WEEPING AND WAILING RIDE HIS GELDING AND USE THE BODIES OF HIS WOMEN AS A NIGHTSHIRT AND SUPPORT THE HORSE PEOPLE'S WAY OF WAR WAS USED BY THE MUSLIMS TO DEFEAT THE CRUSADERS AND WAS PARTIALLY ADOPTED IN WESTERN CAVALRY REGIMENTS BUT MODERN ADVOCATES OF HIT AND RUN TACTICS HAVE ALWAYS REPRESENTED A DISSENTING TRADITION WITHIN THE ORTHODOX ARMY ESTABLISHMENT AS AMERICANS SPECIAL FORCES KNOW SO WELL REMARKABLY DESPITE THE HORRIFIC LESSONS OF BOTH WORLD WARS CLAUSEWITZ REMAINS ENTRENCHED IN THE ARMY ESTABLISHMENTS OF EASTERN AND WESTERN EUROPE ALL WERE REFASHIONED IN THE IMAGE OF CLAUSEWITZ'S PRUSSIAN MODEL WITH ITS ELITE AND POWERFUL GENERAL STAFF HEADED BY AN ALL POWERFUL SINGLE CHIEF OF STAFF ALL HUED TO THE CLAUSEWITZ ORTHODOXY OF DIRECT CONCENTRATION OF FORCE IN ATTRITION WARFARE WITH MASS CONSCRIPT ARMIES ALL SUCCUMBED TO THE PERNICIOUS DOGMA THAT WAR WAS A CONTINUUM OF POLITICS AND ALL LOST MUCH CIVILIAN CONTROL OF THEIR MILITARY THE US WAS NOT INITIALLY FERTILE SOIL FOR THE TOTALITARIAN ORTHODOXIES OF EITHER MARX OR CLAUSEWITZ AND DEVOTION TO THE LATTER WAS CONFINED TO WEST POINT UNTIL THE RISE OF THE ACADEMIC STRATEGISTS OF THE COLD WAR THE WHIZ KIDS OF THE MCNAMARA PENTAGON AND RAND CORP RESURRECTED CLAUSEWITZ AND APPLIED HIM TO THE NUCLEAR AGE COMING UP WITH THE DOCTRINE OF MUTUAL ASSURED DESTRUCTIONWARFARE CARRIED ON THROUGH THE POLITICS OF DETERRENCE THEORY WHICH MR KEEGAN'S RIGHTLY CALLS A POISONOUS INTOXICATION I FIND IT A FINE IRONY THAT THIS MILITARY EQUIVALENT OF MARXISM BECAME ENTRENCHED IN LAW THROUGH THE EFFORTS OF NONE OTHER THAN THAT MOST VOCIFEROUS ANTICOMMUNIST OF THE COLD WAR BARRY GOLDWATER THE GOLDWATERNICHOLS LEGISLATION FINALLY ENSHRINED CLAUSEWITZ WITH ITS GENERAL STAFF AND ALL POWERFUL CHAIRMAN AND ITS DOCTRINE OF LAND WARFARE ABOVE ALL AS THE LEGISLATED ORTHODOXY OF THE PENTAGON IN ADDITION TO PLOTTING THE GHASTLY LEGACY OF CLAUSEWITZ MR KEEGAN IS FULL OF ENGAGING TRIVIA MENTIONING FOR INSTANCE THAT UNTIL THIS CENTURY VIRTUALLY ALL NAVAL BATTLES WERE FOUGHT IN COASTAL WATERS SIMPLY BECAUSE LARGE FLEETS COULDN'T FIND EACH OTHER IN OPEN OCEAN UNTIL THE APPEARANCE OF 20TH CENTURY TECHNOLOGIES HE FINDS IT ALMOST UNCANNY HOW FREQUENTLY GREAT BATTLES HAVE BEEN FOUGHT NOT ONLY IN THE SAME AREAS LIKE NORTHERN BELGIUM BUT IN THE SAME EXACT SPOT OVER A LONG PERIOD OF HISTORY THE MOST ARRESTING EXAMPLE IS ADRIANOPLE TURKEY WHERE 15 BATTLES AND SIEGES HAVE BEEN RECORDED THE FIRST IN 323 BC AND THE LATEST IN JULY 1913 ABOUT THE HEAVIEST GOING IN THIS LIVELY BOOK IS AN ABERRANT SECTION ON BEHAVIORAL THEORIES QUOTING THE LIKES OF SIGMUND FREUD AND MARGARET MEAD IN THE MANNER OF A PHD DISSERTATION IT IS MERCIFULLY BRIEF AND IS FOLLOWED BY A PASSAGE OF SHOCKING POLITICAL INCORRECTNESS DESCRIBING A VARIETY OF QUITE BEASTLY PRACTICES AMONG THE NATIVE AMERICANS INCLUDING HE WAS FINISHED OFF BY THE RITUAL OPENING OF HIS CHEST AND THE TEARING OF HIS STILLBEATING HEART FROM ITS SEAT MR KEEGAN ENDS THIS EXCELLENT BOOK WITH AN UNCHARACTERISTIC EXHORTATION UNLESS WE DENOUNCE THE IDEOLOGY OF CLAUSEWITZ OUR FUTURE LIKE THAT OF THE LAST EASTER ISLANDERS MAY BELONG TO THE MEN WITH BLOODIEST HANDS MR LEHMAN WAS SECRETARY OF THE NAVY IN THE REAGAN ADMINISTRATION SEE RELATED LETTER LETTERS TO THE EDITOR TOTAL WAR' IN THE STONE AGE WSJ DEC 23 1993 9312010014 YY93 MM12 9312230141 931223 US TAX COURT RULES FOR EXXON TEXACO IN DISPUTE WITH IRS WASHINGTON THE US TAX COURT RULED IN FAVOR OF EXXON CORP AND TEXACO INC IN A DISPUTE WITH THE INTERNAL REVENUE SERVICE IN WHICH THE FEDERAL AGENCY CLAIMED THAT THE COMPANIES OWED BILLIONS OF DOLLARS IN ADDITIONAL FEDERAL INCOME TAXES FOR 1979 TO 1981 THE IRS HAD ALLEGED THAT THE OIL GIANTS CHARGED AFFILIATES MORE FOR OIL THAN THEY CLAIMED TO HAVE CHARGED IN ITS DECISION THE COURT AGREED WITH THE COMPANIES THAT THEY DID NOT SELL THE OIL AT A HIGHER PRICE EXXON AND TEXACO ALONG WITH MOBIL CORP AND CHEVRON CORP MADE UP A CONSORTIUM CALLED ARABIAN AMERICAN OIL CO OR ARAMCO WHICH BOUGHT CRUDE OIL FROM SAUDI ARABIA AT BELOWMARKET PRICES DURING AND JUST AFTER THE IRANIAN REVOLUTION AND PASSED THE LOWER PRICES THROUGH TO AFFILIATES THIS BECAME KNOWN AS THE ARAMCO ADVANTAGE THE IRS MAINTAINED THAT THE FOUR COMPANIES SHOULD HAVE CHARGED THEIR AFFILIATES HIGHER PRICES FOR THIS OIL RESULTING IN TAXES ON HIGHER PROFITS THE AGENCY SAID EXXON OWED 2 BILLION TEXACO OWED 863 MILLION AND MOBIL 300 MILLION INTEREST ON THE BACK TAXES WOULD HAVE ADDED HUNDREDS OF MILLIONS MORE THE TAX COURT'S DECISION APPLIED ONLY TO EXXON AND TEXACO BOTH OF WHICH HAD INITIATED LITIGATION AGAINST THE IRS MOBIL HAS SAID IT WILL FIGHT ITS TAX BILL IN COURT WHILE CHEVRON HAS SAID IT WAS NEGOTIATING WITH THE IRS THE TAX COURT'S DECISION WHICH AN EXXON LAWYER CALLED FINAL MEANS THAT CHEVRON AND MOBIL WILL ALSO LIKELY BE CLEARED AN IRS SPOKESMAN COULD NOT BE REACHED TO COMMENT THE COURT HAS NOT YET ENTERED ITS FORMAL OPINION ON THE ARAMCO MATTER AS IT TOOK UP A NUMBER OF OTHER CLAIMS FOR ADDITIONAL TAXES AT THE SAME TIME EXXON SAID IT EXPECTS VIRTUALLY ALL OF THESE OTHER ISSUES WILL BE RESOLVED TO ITS SATISFACTION THE DECISION WAS DISCLOSED AFTER THE STOCK MARKET CLOSED CHEVRON CORP IS BEING AUDITED BY THE INTERNAL REVENUE SERVICE IN A TAX DISPUTE INVOLVING 19791981 CRUDE OIL PURCHASES FROM SAUDI ARABIA AN ARTICLE THURSDAY INCORRECTLY SAID CHEVRON WAS NEGOTIATING WITH THE IRS TO SETTLE THE MATTER 9312230140 931223 INTERNATIONAL QUEBEC ONTARIO APPEAR TO BE CLOSE TO SETTLING DISPUTE BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL AS TRADE BARRIERS GET SET TO FALL AROUND THE GLOBE CANADA'S BIGGEST PROVINCES APPEAR CLOSE TO SETTLING ANOTHER TRADE WAR BETWEEN THE TWO OF THEM A SIMMERING FEUD BETWEEN QUEBEC AND ONTARIO BOILED OVER THIS FALL AFTER ONTARIO'S GOVERNMENT ISSUED A DIRECTIVE BARRING QUEBEC COMPANIES FROM RECEIVING CONTRACTS ON PUBLIC PROJECTS ONTARIO WAS HOPING TO PRESSURE ITS NEIGHBOR TO DROP LONGSTANDING MEASURES THAT FAVOR QUEBEC COMPANIES IN PUBLIC CONTRACTS MORE THAN 660 MILLION CANADIAN DOLLARS US495 MILLION IN CONTRACT TENDERS HAVE BEEN AFFECTED BY ONTARIO'S POLICY COVERING EVERYTHING FROM WATERTREATMENT SYSTEMS TO OFFICE CARPETING THE PRESSURE SEEMS TO HAVE WORKED QUEBEC'S MINISTER OF INDUSTRY GERALD TREMBLAY ANNOUNCED LAST WEEK THAT HIS PROVINCE IS READY TO DROP ALL MEASURES PERCEIVED AS PROTECTIONIST QUEBEC ALSO ADOPTED A LAW ALLOWING NONUNIONIZED WORKERS ON SOME CONSTRUCTION SITES DESPITE FIERCE UNION OPPOSITION THAT CHANGE WILL ENABLE MORE ONTARIO WORKERS TO CROSS INTO QUEBEC ALLEVIATING ONE OF ONTARIO'S MAJOR COMPLAINTS QUEBEC'S OLIVE BRANCH FOLLOWED HOWLS OF PROTEST FROM COMPANIES HURT BY THE TRADE SKIRMISH BRAM GARBER CHAIRMAN OF PEERLESS CARPET CORP SAID HIS MONTREALBASED COMPANY UNABLE TO BID ON SEVERAL CONTRACTS IN ONTARIO MIGHT HAVE TO CUT PRODUCTION UNLESS THE RULES CHANGE THE IRONY OF THIS IS THAT 90 OF OUR RAW MATERIALS ARE SOURCED IN ONTARIO MR GARBER SAYS SO THIS IS ALSO HURTING ONTARIO MANUFACTURERS THE CANADIAN MANUFACTURERS' ASSOCIATION ESTIMATES NONTARIFF BARRIERS TO INTERPROVINCIAL TRADE COST CANADA'S ECONOMY C65 BILLION A YEAR MOSTLY BECAUSE OF INEFFICIENT PROCUREMENT PRACTICES EXAMPLE CONTRACTORS FOR TORONTO'S DOMED STADIUM SUGGESTED USING TWO 1000HORSEPOWER BOILERS FROM A SASKATCHEWAN COMPANY BUT THE STADIUM BOUGHT FOUR SMALLER BOILERS AT FAR HIGHER COST BECAUSE THE PROVINCIAL GOVERNMENT WANTED TO USE AN ONTARIO SUPPLIER WHICH DIDN'T MAKE THE BIGGER UNITS THE MANUFACTURERS' ASSOCIATION SAYS PROVINCIAL AND FEDERAL OFFICIALS LAUNCHED TALKS IN 1987 AIMED AT ELIMINATING CANADA'S INTERNAL TRADE BARRIERS SIX YEARS LATER THEY'RE AIMING FOR A COMPREHENSIVE ACCORD BY NEXT JUNE THE HAGGLING HAS DRAGGED ON PARTLY BECAUSE UNDER CANADA'S DECENTRALIZED POLITICAL SYSTEM JURISDICTION OVER TRADE ISSUES IS SPREAD AMONG PROVINCIAL AND FEDERAL GOVERNMENTS QUEBEC OFFICIALS NOW SAY THEY HOPE A TRADE PACT WITH ONTARIO WILL BECOME A MODEL FOR THE REST OF THE COUNTRY THE TWO PROVINCES CONDUCT ABOUT C34 BILLION A YEAR IN BILATERAL TRADE ONTARIO PREMIER BOB RAE AND QUEBEC'S INCOMING PREMIER DANIEL JOHNSON MET EARLIER THIS WEEK AND SAID AFTERWARD A DEAL COULD BE REACHED SOON 9312230139 931210 CHINA A SPECIAL REPORT FROM THE OUTSIDE MUTUAL INTEREST INVESTMENT FUNDS LET INDIVIDUALS WITH THE CAPITAL AND THE COURAGE GET IN ON THE ACTION BY ROBERT STEINER AND ROBERT MCGOUGH HONG KONG NOT EVERYONE CAN SWING A JOINT VENTURE BUT STOUTOFHEART SMALL INVESTORS CAN STILL FIND WAYS TO PUT THEIR MONEY INTO CHINA THERE ARE THREE CHIEF WAYS FOR INDIVIDUALS TO DO SO MUTUAL AND CLOSEDEND FUNDS THAT OWN SHARES OF COMPANIES WITH FACTORIES OR OTHER INTERESTS IN CHINA RED CHIPS OR SHARES OF COMPANIES THAT HAVE INVESTMENTS IN CHINA BUT ARE LISTED ON EXCHANGES OUTSIDE THE COUNTRY AND CLASS B SHARES WHICH ARE STOCKS IN CHINESE COMPANIES LISTED ON CHINA'S OWN SECURITIES EXCHANGES WHATEVER ROUTE YOU TAKE BE PREPARED FOR A ROLLERCOASTER RIDE CHINA'S IS A CLASSIC EMERGING MARKET GIVEN TO ALL SORTS OF SURPRISES SEVERAL OF THOSE B SHARES FOR EXAMPLE ARE DOWN NEARLY 50 THIS YEAR AND SOME ANALYSTS SAY THAT BECAUSE THE PRICES OF MANY OTHER CHINARELATED STOCKS PARTICULARLY IN HONG KONG HAVE KEPT CLIMBING DESPITE SOME UNCERTAINTY ABOUT CHINA'S NEARTERM ECONOMIC PROSPECTS THEY MAY ALSO BE IN FOR A FALL FOR THOSE WITH THE STOMACH FOR IT HERE'S HOW TO MAKE YOUR LEAP OF FAITH FOR SMALL INVESTORS THE BEST BET IS TO BUY CHINA FUNDS SAYS EUGENE YANG MANAGING DIRECTOR OF STANDARD CHARTERED SECURITIES ASIA LTD A HONG KONGBASED BROKERAGE FIRM MICROPAL EMERGING MARKET FUND MONITOR BASED IN BOSTON AND LONDON LISTS 34 CHINA FUNDS WORLDWIDE AVAILABLE TO SMALL INVESTORS WITH A TOTAL OF MORE THAN 15 BILLION OF ASSETS UNDER MANAGEMENT THE FUNDS WITH ALL THE USUAL ADVANTAGES OF THEIR KIND INCLUDING PROFESSIONAL MANAGEMENT AND INSTANT DIVERSIFICATION COME IN TWO TYPES CLOSEDEND AND OPENEND CLOSEDEND FUNDS WHICH INVESTORS BUY THE WAY THEY BUY ANY LISTED STOCKS ARE PUBLICLY TRADED ON STOCK EXCHANGES AROUND THE WORLD AS A RESULT THEIR SHARE PRICES CAN SWING WIDELY ABOVE OR BELOW THE PERSHARE VALUE OF THEIR INVESTMENT PORTFOLIOS CLOSEDEND FUNDS LISTED OUTSIDE THE US TEND TO TRADE AT PRICES ABOUT EQUAL TO OR JUST BELOW THE UNDERLYING VALUE OF THE STOCKS EACH FUND HOLDS MOST CHINA FUNDS LISTED IN THE US HOWEVER HAVE TRADED AT A PREMIUM TO THEIR UNDERLYING VALUE FOR MUCH OF THIS YEAR ANALYSTS ATTRIBUTE THAT TO US INVESTORS' ENTHUSIASM ABOUT CHINA STILL I WOULD NOT PAY A PREMIUM FOR ONE OF THESE CHINA FUNDS SAYS JOHN HICKLING WHO RUNS SEVERAL FOREIGNSTOCK FUNDS AT FIDELITY INVESTMENTS IN BOSTON PAYING MORE FOR A PIECE OF A FUND THAN THE VALUE OF THE STOCK IT REPRESENTS HE ARGUES IS RIDICULOUS OPENEND FUNDS AVOID THAT PROBLEM BECAUSE INVESTORS BUY SHARES FROM THE FUNDMANAGEMENT COMPANY AT A PRICE SET TO REFLECT THE MARKET VALUE OF THE FUND'S ASSETS PLUS ANY SALES CHARGE WHEN YOU SELL YOUR SHARES THE FUND COMPANY BUYS THEM BACK AT THE MARKET VALUE OF THE FUND'S ASSETS OPENEND FUNDS HOWEVER HAVE A DISADVANTAGE THAT CAN BE ESPECIALLY PRONOUNCED IN A VOLATILE MARKET THE VALUE OF THEIR SHARES CAN FALL MORE SUDDENLY AND STEEPLY THAN THE VALUE OF A CLOSEDEND FUND THE REASON IS THAT IF TUMBLING STOCK PRICES SPARK MASS REDEMPTIONS A FUND MUST QUICKLY SELL BIG PARTS OF ITS HOLDINGS TO RAISE THE CASH NEEDED TO BUY SHARES BACK FROM ITS SHAREHOLDERS IF THIS HAPPENED ON THE CHINESE EXCHANGES A CHINA FUND WOULD BE FORCED TO SELL ITS STOCKS IN A FALLING MARKET AND WOULD PROBABLY ACCELERATE THE MARKET'S DECLINE IN DOING SO CHINAFUND MANAGERS INVEST IN COMPANIES LISTED ON CHINA'S TWO STOCK EXCHANGES IN SHANGHAI AND SHENZHEN SOME ALSO INVEST IN UNLISTED CHINESE COMPANIES IN ANTICIPATION OF THEIR GOING PUBLIC AND MANY MANAGERS INVEST HEAVILY IN THE HONG KONG STOCK MARKET VIEWING HONG KONG COMPANIES THAT HAVE ASSETS IN CHINA AS LEGITIMATE CHINA PLAYS FUND MANAGERS CAN PUT LARGE AMOUNTS OF MONEY TO WORK FASTER IN HONG KONG THAN IN CHINA SAYS DOUGLAS EU A FUND MANAGER AT JARDINE FLEMING INTERNATIONAL MANAGEMENT IN HONG KONG BECAUSE CHINA'S OWN STOCK MARKETS LIST ONLY 32 COMPANIES WITH SHARES OPEN TO FOREIGN INVESTORS THERE'S NOT A LOT YOU CAN BUY IN A HURRY MR EU SAYS THAT CAN BE A PROBLEM THE TEMPLETON CHINA WORLD FUND RECENTLY RAISED 260 MILLION FOR INVESTMENT MORE THAN 2 1/2 TIMES WHAT IT EXPECTED SAYS J MARK MOBIUS ITS HONG KONGBASED MANAGER THE FUND STILL HASN'T INVESTED ALL OF THE MONEY WHICH MAKES MANY FUND MANAGERS WONDER HAS CHINA ALREADY BECOME TOO MUCH OF AN INVESTMENT FAD SOME FUND MANAGERS ARE NOW HUNTING FOR CHINA PLAYS ELSEWHERE IN ASIA THAT WAY IF SOMETHING GOES WRONG IN THE CHINA AND HONG KONG MARKETS THE INVESTOR HAS AT LEAST SPREAD THE RISK AROUND IN A SURVEY OF CHINA FUNDS MICROPAL FOUND AN EXTREME EXAMPLE OF THIS APPROACH YELLOW SEA INVESTMENT CO WHICH HAD 724 OF ITS ASSETS INVESTED IN SOUTH KOREA AS OF AUGUST BY COMPARISON JARDINE FLEMING CHINA REGION FUND HAD 15 OF ITS ASSETS INVESTED IN KOREA ANOTHER ALTERNATIVE FOR CONSERVATIVE INDIVIDUALS IS TO INVEST IN A PACIFICREGION FUND ESPECIALLY ONE THAT DOESN'T INVEST IN JAPAN SAYS KENNETH GREGORY EDITOR OF NOLOAD FUND ANALYST A SAN FRANCISCOBASED NEWSLETTER ONE NOLOAD FUND HE RECOMMENDS IS T ROWE PRICE NEW ASIA HE ALSO LIKES NEWPORT TIGER WHICH IS HEAVILY INVESTED IN HONG KONG ALTHOUGH NEWPORT CHARGES A LOAD OF 5 THAT ENTRY COST ISN'T AS HIGH AS THE PREMIUMS ON SUCH CLOSEDEND ASIA REGIONAL FUNDS AS BARING INTERNATIONAL INVESTMENT MANAGEMENT'S ASIA PACIFIC FUND WHICH IN MIDNOVEMBER SOLD AT A PREMIUM OF 179 ABOVE ITS UNDERLYING VALUE IF YOU WANT TO SHAPE YOUR OWN PLAY ON CHINA THE BEST BET IS BUYING REDCHIP STOCKS HOWEVER ONCE YOU VENTURE BEYOND THE FEW RED CHIPS TRADED IN THE US FINDING A BROKER TO HANDLE THE TRANSACTIONS CAN BE HARD MERRILL LYNCH INTERNATIONAL CO AND SMITH BARNEY SHEARSON INC ARE AMONG THE FIRMS THAT EXECUTE INTERNATIONAL TRADES FOR INDIVIDUALS IT PAYS TO SORT THROUGH HONG KONG STOCKS CAREFULLY MOST COMPANIES IN THE COLONY CLAIM TO HAVE CHINA PROJECTS IN THE WORKS BUT IF YOU SIT DOWN AND GO THROUGH EACH INDIVIDUAL COMPANY PROBABLY LESS THAN 5 OF THE MARKET'S EARNINGS CURRENTLY COME FROM CHINA SAYS PETER CHURCHOUSE A PRINCIPAL AT MORGAN STANLEY ASIA LTD ONE DIRECT WAY TO INVEST IN CHINA THROUGH HONG KONG IS TO BUY SOCALLED H SHARES STOCKS IN FIVE INDUSTRIAL COMPANIES THAT CHINA HAS LISTED ON HONG KONG'S EXCHANGE THEY INCLUDE TSINGTAO BREWERY CO CHINA'S LEADING BEER MAKER AND SHANGHAI PETROCHEMICAL CO THE COUNTRY'S LARGEST PETROCHEMICAL CONCERN SHANGHAI PETROCHEMICAL ALSO TRADES ON THE NEW YORK STOCK EXCHANGE THROUGH AMERICAN DEPOSITARY RECEIPTS SPECIAL CERTIFICATES THAT IN THIS CASE REPRESENT THE HONG KONGLISTED SHARES ALL HSHARE COMPANIES USE INTERNATIONAL ACCOUNTING STANDARDS SO INVESTORS CAN EXAMINE THEIR FINANCIAL STATEMENTS MOREOVER THEY ARE MONITORED BY HONG KONG SECURITIES REGULATORS HONG KONG DOESN'T TAX CAPITAL GAINS OR DIVIDENDS AND US INVESTORS DON'T HAVE TO WORRY THAT A SUDDEN DROP IN THE VALUE OF HONG KONG'S CURRENCY WILL HURT THEIR INVESTMENT THE HONG KONG DOLLAR WHICH CURRENTLY BUYS ABOUT 13 US CENTS IS PEGGED TO THE GREENBACK RED CHIPS CAN ALSO BE FOUND ON THE NEW YORK STOCK EXCHANGE WHERE SHARES OF THREE CHINESE COMPANIES NOW HAVE THEIR PRIMARY LISTINGS ONE IS BRILLIANCE CHINA AUTOMOTIVE HOLDINGS LTD A BERMUDA HOLDING COMPANY WHOSE ONLY ASSET IS A STAKE IN A MANCHURIAN ASSEMBLER OF TRUCKS AND CARS THE TWO OTHERS ARE CHINESE SUBSIDIARIES OF NONCHINESE COMPANIES THE RISKIEST BUT MOST DIRECT WAY TO INVEST IN CHINA IS TO BUY CLASS B SHARES OF COMPANIES LISTED ON THE SHANGHAI AND SHENZHEN EXCHANGES THESE ARE THE SHARES RESERVED FOR FOREIGNERS COMPANIES ALSO LIST CLASS A SHARES WHICH ONLY CHINESE CAN HOLD AN INVESTOR WILL HAVE TO HUNT THOUGH TO FIND A FOREIGN BROKER SET UP TO CARRY OUT AN ORDER THROUGH THE CHINESE SYSTEM THIS IS THE FRONTIER OF INVESTING IN MORE WAYS THAN ONE SHANGHAI STUCK ITS EXCHANGE ACROSS THE STREET FROM THE DILAPIDATED RUSSIAN CONSULATE AND A BIG SEWAGE CANAL THE SHENZHEN STOCK EXCHANGE IS LOCATED UNDER A NEON SIGN THAT PERHAPS APPROPRIATELY READS SHENZHEN GRAND THEATER HOLDERS OF B SHARES CAN VOTE AT ANNUAL AND SPECIAL MEETINGS AND THEY CAN RECEIVE DIVIDENDS AND COPIES OF A COMPANY'S FINANCIAL REPORTS IN ENGLISH TWICE A YEAR CHINA DOESN'T TAX DIVIDENDS BUT IT DOES HAVE A 10 CAPITALGAINS TAX INVESTORS ARE ALSO LIABLE FOR ANY TAXES IN THEIR HOME COUNTRIES SHAREHOLDERS MUST BE MINDFUL OF THE FACT THAT CHINESE COMPANIES AND REGULATORS ARE NEW TO THE DEMANDS OF STOCK INVESTORS ANALYSTS WHO VISITED SOME SOUTHERN CHINESE COMPANIES LAST YEAR FOUND MANAGERS BOASTING THAT THEY HAD USED THEIR PROCEEDS FROM BSHARE OFFERINGS NOT FOR THEIR BUSINESSES BUT TO SPECULATE ON PROPERTY AND IN THE SHARES OF OTHER COMPANIES BUSINESSES IN CHINA ALSO DON'T ALWAYS RESPOND TO FREEMARKET PRESSURES SHANGHAI VACUUM ELECTRON DEVICE CO APPEARS HAPPY TO REMAIN ONE OF THE COUNTRY'S LARGEST PRODUCERS OF BLACKANDWHITE TV TUBES EVEN THOUGH CHINA IS QUICKLY SWITCHING TO COLOR ITS B SHARES LISTED IN JANUARY 1992 HAVE SINCE TUMBLED ABOUT 70 IN FACT IN A REGION OF BULL MARKETS THE BSHARE COMPANIES HAVE BEEN LAGGARDS THE CREDIT LYONNAIS SECURITIES ASIA INDEX OF SHENZHEN B SHARES FELL 63 IN THE YEAR ENDED OCT 29 THE FIRM'S SHANGHAI BSHARE INDEX ROSE 176 IN THAT PERIOD THOSE RESULTS COMPARE WITH A 51 INCREASE IN THE HANG SENG INDEX OF HONG KONG BLUE CHIPS DURING THAT TIME SHENZHEN B SHARES ARE TRADED AND QUOTED IN HONG KONG DOLLARS AND SHANGHAI SHARES ARE QUOTED IN US DOLLARS SO REPATRIATING CASH AFTER SELLING STOCK IS NO PROBLEM DIVIDENDS THOUGH ARE PAID IN CHINESE CURRENCY SO BEWARE A BIG SHIFT IN EXCHANGE RATES COULD REDUCE THE BENEFITS OF YOUR STOUTHEARTED GAMBLE ON CHINESE STOCKS MR STEINER BASED IN HONG KONG AND MR MCGOUGH BASED IN NEW YORK ARE STAFF REPORTERS FOR THE WALL STREET JOURNAL 9312230138 931223 POLITICS & PEOPLE THE DLC'S PHONY LIBERAL SCARE BY ALBERT R HUNT DAVE MCCURDY CHAIRMAN OF THE DEMOCRATIC LEADERSHIP COUNCIL SOUNDED LIKE THE HEAD OF THE LOYAL OPPOSITION AT THE DLC SESSION EARLIER THIS MONTH MODERATE DEMOCRATS NEED TO ALERT THE ADMINISTRATION WHEN IT DEPARTS FROM THEIR VALUES THE OKLAHOMAN COMPLAINED THE PRESIDENT HELPED TO SET OUR NATIONAL COMPASS IN THE LAST ELECTION BUT THOSE ENACTING HIS VISION HAVE NOT TAKEN THE READING OF THAT COMPASS IT IS OUR JOB TO FIGHT THOSE WHO WOULD WATER DOWN OUR AGENDA MR MCCURDY IS TALKING ABOUT AN ADMINISTRATION THAT NOT ONLY IS HEADED BY A FOUNDER OF THE DLC SET UP ALMOST NINE YEARS AGO BY MODERATE ELECTED OFFICIALS TO COUNTER THE PARTY'S LIBERAL BENT BUT ALSO HAS EMBRACED ABOUT 90 OF ITS NEW DEMOCRAT AGENDA IT SUGGESTS THIS SORT OF SNIPING FROM THE DEMOCRATS' RIGHT REFLECTS LESS AN HONEST CRITIQUE OF THE ADMINISTRATION AND MORE THE NEED TO RETAIN A LIBERAL BOGEYMAN OR FURTHER PERSONAL AMBITIONS THERE ARE A FEW DIFFERENCES BETWEEN THE DLC AND THE ADMINISTRATION OVER HOW MUCH TO CUT ENTITLEMENTS AND THE GOVERNMENT ROLE IN A NEW HEALTH CARE SYSTEM BUT AS THE ACCOMPANYING TABLE SHOWS THEY ARE OVERWHELMED BY THE SIMILARITIES EQUALLY UNTRUE IS THE OFTSTATED ASSERTION THAT THIS PRESIDENT IS SURROUNDED BY OLDLINE LIBERALS ON ECONOMICS THE TOP POLICY MAKERS ARE TREASURY SECRETARY LLOYD BENTSEN AND DEPUTY SECRETARY ROGER ALTMAN BUDGET DIRECTOR LEON PANETTA NATIONAL ECONOMIC POLICY CHIEF BOB RUBIN AND LAURA TYSON CHAIRWOMAN OF THE COUNCIL OF ECONOMIC ADVISERS MESSRS BENTSEN AND PANETTA WERE MEMBERS OF THE DLC MESSRS RUBIN AND ALTMAN WERE TOP WALL STREET INVESTMENT BANKERS AND MS TYSON WAS A MIDDLEOFTHEROAD ACADEMIC ECONOMIST NOT A LEFTIE IN THE GROUP THE ADMINISTRATION'S FOREIGN POLICY WOES ARE MATTERS OF COMPETENCE OR FOCUS NOT IDEOLOGY THE DLC IS WELL REPRESENTED HERE TOO AS SHOULD BE THE CASE THERE ARE SOME LIBERALS ATTORNEY GENERAL JANET RENO HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA AND LABOR SECRETARY ROBERT REICH THOUGH NONE ARE WILDEYED BUT THERE ARE SIX FORMER DLCERS IN THE CABINET ANOTHER CHARTER MEMBER IS AL GORE YEAH CONSERVATIVES GRIPE BUT ALL THE KEY SECONDLEVEL OFFICIALS ARE LIBERALS NOT SO THE DLC'S BRUCE REED IS THE CHIEF STAFFER FASHIONING A NEW WELFARE PROPOSAL AND ELAINE KAMARCK RUNS VICE PRESIDENT GORE'S REINVENTING GOVERNMENT INITIATIVE TO NAME JUST TWO ONE DLC TYPE WHO ISN'T IN THE ADMINISTRATION HOWEVER IS DAVE MCCURDY THE OKLAHOMA DEMOCRAT DESPERATELY LOBBIED TO BECOME DEFENSE SECRETARY AFTER THE 1992 ELECTION ONE TOP TRANSITION OFFICIAL RECALLS ONE TACTIC HE USED ACCORDING TO BOTH ADMINISTRATION AND CAPITOL HILL DEMOCRATS WAS TO COMPLAIN PRIVATELY ABOUT HOW DANGEROUS IT WOULD BE IF LES ASPIN BECAME DEFENSE SECRETARY BECAUSE LEFTWING REP RON DELLUMS WOULD SUCCEED MR ASPIN AS CHAIRMAN OF THE HOUSE ARMED SERVICES COMMITTEE THAT IS A MCCURDY HABIT HE CALLED IN COLUMNISTS AND BUREAU CHIEFS WHEN HE CONSIDERED A PRESIDENTIAL RUN IN 1992 BOOSTING HIMSELF BY TEARING DOWN OTHERS IN THE CLINTON COMPARISON HE NOTED PAM HIS WIFE AND I HAVE BEEN HAPPILY MARRIED FOR 20 YEARS NOT LONG AFTER SPEAKER THOMAS FOLEY NAMED HIM INTELLIGENCE COMMITTEE CHAIRMAN IN 1991 HE BEGAN TALKING ABOUT A CHALLENGE TO THE SPEAKER MR MCCURDY SAYS THIS IS ALL A BUM RAP IT WAS MILITARY LEADERS WHO RAISED THE DELLUMS PROBLEM TO HIM HE CLAIMS BUT HE WON'T NAME THEM JUST AS HE WON'T IDENTIFY THE ADMINISTRATION OFFICIALS TRYING TO WATER DOWN THE PRESIDENT'S AGENDA DAVID MCCURDY IS A VERY SMART MAN BUT WHEN IT COMES TO SLICKNESS HE MAKES BILL CLINTON LOOK LIKE GEORGE C MARSHALL YET NOT ALL THE GRUMBLING OF CONSERVATIVE DEMOCRATS CAN BE ATTRIBUTED TO EGO AND AMBITIONS IN PART IT'S THEIR ROLE IN WHAT BASICALLY IS A PROGRESSIVE PARTY THE SAME PROBLEM THAT AFFLICTS MODERATE/LIBERALS IN THE GOP IT'S THE OLD SAW THAT WHEN A MAN IS DROWNING 20 FEET OFFSHORE THEY THROW HIM A 15FOOT ROPE AND THEN BRAG THEY WENT MORE THAN HALFWAY IT'S UNREALISTIC TO EXPECT ANY DEMOCRATIC ADMINISTRATION TO ABANDON LABOR THE HANDICAPPED BLACKS AND OTHER MORE TRADITIONAL DEMOCRATIC CONSTITUENCIES THAT WOULD WIN PRAISE FROM CONSERVATIVE PUNDITS AND LOSE ELECTIONS AND WHETHER NEW DEMOCRATIC IDEAS REALLY ARE THE FOUNDATION OF A STRONGER PARTY OR MERELY A VARIATION OF MODERATE REPUBLICANISM REMAINS AN OPEN QUESTION ON ISSUES RANGING FROM CRIME TO WELFARE TO TRADE THE DLC HAS CONTRIBUTED TO THE POLITICAL DIALOGUE SINCE 1985 BUT IF IT ADOPTS ITS OWN BRAND OF POLITICAL CORRECTNESS IN WHICH ANY SLIGHT DEVIANCY IS TANTAMOUNT TO CAPITULATION IT RISKS BECOMING WHAT IT SET OUT TO COUNTER A NARROWLY BASED GROUP INTENT ON PURSUING PAROCHIAL SELFINTERESTS AND SELFISH ADVANCEMENT DLC CUT THE DEFICIT AND GIVE THE PRESIDENT A LINEITEM VETO CLINTON WON APPROVAL OF A MEASURE TO REDUCE THE BUDGET DEFICIT BY CLOSE TO 500 BILLION OVER FIVE YEARS REQUESTED A LINEITEM VETO DLC MAKE THE TAXES MORE PROGRESSIVE BY INCREASING TAXES ON THE WEALTHY AND EXPAND THE EARNED INCOME TAX CREDIT CREATE PROGROWTH INCENTIVES AND GIVE TAX RELIEF TO FAMILIES CLINTON TAX CODE WAS MADE MORE PROGRESSIVE BY BOOSTING TAXES ON THE AFFLUENT AND EXPANDING THE EARNED INCOME TAX CREDIT FOR THE WORKING POOR THE PROGROWTH INCENTIVES WERE MODEST DLC STRONGLY SUPPORTED NAFTA AND GATT CLINTON WON CONGRESSIONAL APPROVAL FOR NAFTA LAST MONTH AND REACHED A GATT ACCORD LAST WEEK DLC REPLACE WITH A WORKBASED SOCIAL POLICY LIMIT ELIGIBILITY TO TWO YEARS CLINTON EXPECTED TO PROPOSE WORKBASED SYSTEM THAT LIMITS MOST ELIGIBILITY TO TWO YEARS DLC CALLED FOR A LARGE FEDERAL RULE ON COMBATTING CRIME INCLUDING MORE POLICE AND A NATIONAL POLICE CORPS AND TOUGHER GUN LAWS CLINTON SUPPORTS THE SENATEPASSED BILL THAT WOULD CREATE 100000 MORE COPS A NATIONAL POLICE CORPS A WAITING PERIOD TO PURCHASE HANDGUNS AND A BAN ON CERTAIN ASSAULT WEAPONS DLC ENACT A NEW CIVILIAN GI BILL TO ENSURE EQUAL ACCESS TO HIGHER EDUCATION AND JOB TRAINING CLINTON WON APPROVAL OF A NATIONAL SERVICE MEASURE ALTHOUGH IT WAS WATERED DOWN BY CONGRESS DLC CUT THE FEDERAL BUREAUCRACY THROUGH ATTRITION BY 200000 JOBS CLINTON THE ADMINISTRATION LED BY VICE PRESIDENT GORE PROPOSES TO REDUCE 252000 FEDERAL JOBS DLC OVERHAUL THE SYSTEM BY ADOPTING A PLAN THAT RELIES ON MANAGED COMPETITION UTILIZES MARKET FORCES AND PROVIDES UNIVERSAL COVERAGE CLINTON PROPOSES UNIVERSAL COVERAGE AND A FORM OF MANAGED COMPETITION BUT ONE THAT RELIES SOMEWHAT LESS ON MARKET FORCES AND MORE ON GOVERNMENT PRICE CONTROLS 9312230137 931223 ESOP FABLES UAL WORKEROWNERS MAY FACE BUMPY RIDE IF THE PAST IS A GUIDE PAY AND MANAGEMENT SNAGS CAN HAMPER SUCH FIRMS AS WEIRTON STEEL FOUND BUT AVIS'S SWITCH PAYS OFF BY ROBERT L ROSE AND ERLE NORTON STAFF REPORTERS OF THE WALL STREET JOURNAL CHICAGO THE SALE OF 53 OF UAL CORP TO ITS EMPLOYEES ISN'T LIKELY TO GET FINAL CLEARANCE UNTIL SPRING BUT IF THE PARENT OF UNITED AIRLINES IS TO SUCCEED AS A HUGE EMPLOYEEOWNED COMPANY EMPLOYEES AND MANAGERS MUST BEGIN WORKING TOGETHER MUCH SOONER THAN THAT AND AS A STARTER THEY MIGHT STUDY THE TROUBLES OF WEIRTON STEEL CORP A ONCEPRAISED MODEL FOR EMPLOYEE OWNERSHIP THAT HAS GONE FROM COOPERATION TO CONFRONTATION IN 10 YEARS THEY MIGHT FOR EXAMPLE TALK TO FRANK SLANCHIK A MAINTENANCE WORKER AT THE WEIRTON WVA COMPANY FOR ABOUT FIVE YEARS BEGINNING IN 1983 WEIRTON STEEL SEEMED TO BE AN EMPLOYEEOWNED SUCCESS MR SLANCHIK AND OTHERS IN HIS MAINTENANCE GROUP ROUTINELY BROKE WORK RULES ALL IN THE NAME OF RUNNING THE PLANT EFFICIENTLY INSTEAD OF WAITING HOURS OR EVEN MINUTES FOR WELDERS FOR EXAMPLE THE WORKERS WOULD GRAB TORCHES AND WELD LADDERS AND LIFTING EQUIPMENT WE KEPT THE JOB MOVING SAYS MR SLANCHIK WHO ACCEPTED THE PAY CUTS AND LAYOFFS AS PART OF AN EMPLOYEE STOCK OWNERSHIP PLAN TO KEEP THE PLANT OPEN WE FELT WHAT WE WERE DOING WAS BEST FOR THE COMPANY I WON'T DO THAT TODAY THEY'VE TAKEN MY DRIVE RIGHT OUT OF MY HEART THEY IN MR SLANCHIK'S EYES IS MANAGEMENT AND THE WORD UNDERLINES THE SHARP CONTRAST FROM THE DAYS WHEN THERE WAS ONLY US AT WEIRTON THE MANAGEMENTWORKER TEAMWORK HAS DISINTEGRATED INTO A WAR THAT INCLUDES A FIGHT OVER A PUBLIC STOCK OFFERING THAT WOULD SHRINK THE EMPLOYEES' STAKE AND A WORKERBACKED LAWSUIT CHARGING THE BOARD AND EXECUTIVES WITH GROSS MISMANAGEMENT NOW MR SLANCHIK SAYS THE TRUST FACTOR HERE IS ZERO OF ALL THE THINGS THAT WENT WRONG AT WEIRTON FUNDAMENTALLY IT BOILED DOWN TO MONEY AND MANAGEMENT CONTROL THESE TWO ISSUES ARE ESPECIALLY LIKELY TO CROP UP IN CAPITALINTENSIVE INDUSTRIES SUCH AS STEEL AND AIRLINES WHICH CONSTANTLY REQUIRE HUGE CAPITAL EXPENDITURES THAT CAN BE VIEWED AS DRAINING MONEY AWAY FROM POTENTIAL WAGE INCREASES MOREOVER EMPLOYEES OFTEN FEEL THAT THEIR ROLE AS AN OWNER CONFLICTS WITH THEIR ROLE AS A WORKER IT'S HARD FOR A UNION AND IT'S EVEN HARDER FOR THE EMPLOYEES WHO ARE OWNERS TO ACCEPT JOB CUTBACKS SAYS MICHAEL LOCKER A CONSULTANT WHO HAS HELPED WORKERS SET UP SEVERAL EMPLOYEE STOCK OWNERSHIP PLANS OR ESOPS AT UNITED ONE REASON THE MACHINISTS AND FLIGHT ATTENDANTS ARE INTERESTED IN EMPLOYEE OWNERSHIP IS TO TRY TO SAVE JOBS SUCH TENSION MAKES SUCCESSFUL EMPLOYEE OWNERSHIP SOMETHING OF A LONG SHOT IN THE CUTTHROAT MONEYLOSING AIRLINE BUSINESS LAST SUMMER EMPLOYEE OWNERSHIP OF UP TO 375 OF NORTHWEST AIRLINES STARTED WITH A BLAST OF MISTRUST WHEN NORTHWEST APPOINTED A CHIEF FINANCIAL OFFICER WHO ONCE WORKED AT CONTINENTAL AIRLINES THE HEAD OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS AT NORTHWEST QUESTIONED THE APPOINTMENT OF AN EXECUTIVE FROM A COMPANY WITH A HISTORY OF CONTENTIOUS LABOR RELATIONS I'M ANXIOUS TO SEE WHETHER THIS LEOPARD WILL CHANGE HIS SPOTS SAID TOM PEDERSEN THE UNION OFFICIAL UNITED'S RECENT HISTORY IS FULL OF SIMILAR ACRIMONY AND OF ALLIANCES FORGED AND BROKEN BETWEEN MANAGEMENT AND THREE STRONGWILLED UNIONS THE MACHINISTS THE AIR LINE PILOTS ASSOCIATION AND THE ASSOCIATION OF FLIGHT ATTENDANTS EVEN TODAY THE 17000 FLIGHT ATTENDANTS HAVE YET TO SIGN ONTO THE DEAL APPROVED YESTERDAY BY UAL'S BOARD AND MANY OF THE COMPANY'S 76000 EMPLOYEES ARE ALREADY GRIPING ABOUT AN INDICATED 45 MILLION PACKAGE THAT UAL'S TOP TWO OFFICERS WOULD GET AS THEY LEAVE YET EMPLOYEE COOPERATION WILL BE CRUCIAL AT UNITED UNLIKE THE SITUATION IN MANY OTHER BUSINESSES CUSTOMERS HAVE A FIRSTHAND LOOK AT HOW WELL EMPLOYEES PERFORM SO SOME 182000 DAILY PASSENGERS WILL BE INSTANT CRITICS OF THE COMPANY THEIR PERCEPTIONS BECOME EVEN MORE IMPORTANT AS UNITED TRIES TO SET UP ITS SOCALLED U2 AIRLINE A NIMBLE SHORTHOP CARRIER DESIGNED TO TAKE ON LOWCOST COMPETITORS JUST SPREADING STOCK CERTIFICATES AROUND A RESTRUCTURED COMPANY IS NOT GOING TO DO IT SAYS JOSEPH BLASI A RUTGERS UNIVERSITY PROFESSOR WHO HAS WRITTEN ABOUT EMPLOYEE OWNERSHIP NOW THEY HAVE TO FOCUS ON THE GRASSROOTS STUFF THE DIRTY DETAILS OUT OF WHICH LONGTERM IMPROVEMENTS ARE MADE BUT EMPLOYEE OWNERSHIP CAN WORK EVEN IN A FARFLUNG SERVICE BUSINESS SUCH AS UNITED AT AVIS INC IT MEANS ONE PHILADELPHIA WORKER COMING UP WITH A NEW WAY TO KEEP CARS LOCKED AND SAFE OVERNIGHT AND A PALM BEACH FLA WORKER FIXING A FLAT FOR A CUSTOMER WITH A COMPETITOR'S CAR THESE PEOPLE FEEL THAT THEY HAVE A STORY TO TELL AND THEY DO IT IN A WAY THAT WILL ASTOUND YOU SAYS AVIS CHAIRMAN JOSEPH VITTORIA WHO POSTPONED HIS OWN EARLY RETIREMENT BECAUSE HE SAYS HE'S HAVING SO MUCH FUN MEASURES OF SERVICE QUALITY ARE UP AND 1992 PROFIT SET A RECORD THE 58YEAROLD MR VITTORIA SAYS AVIS PAID OFF MOST OF ITS 785 MILLION ACQUISITION DEBT FOUR YEARS AHEAD OF PLAN ONE KEY TO SUCCESS LIES IN THE DIFFICULT EFFORT TO MAKE ALL EMPLOYEES THINK AND ACT LIKE OWNERS AND TO MAKE MANAGERS LISTEN TO THEM ON THE FIRST THURSDAY OF EVERY MONTH SOME 150 EMPLOYEEPARTICIPATION GROUPS EPG'S IN AVIS LINGO MEET AROUND THE COUNTRY TO DISCUSS WAYS TO MAKE THE COMPANY MORE PRODUCTIVE THOSE WHO ATTEND ARE ELECTED BY FELLOW EMPLOYEES AND OTHER MEETINGS ARE CONDUCTED AT THE REGIONAL AND NATIONAL LEVEL EVEN IF THE UNITED EXPERIMENT WORKS IT ISN'T LIKELY TO LEAD TO A STAMPEDE OF WORKEROWNERS THE NUMBER OF EMPLOYEE STOCK OWNERSHIP PLANS HAS REMAINED STEADY AT JUST UNDER 10000 FOR THE PAST FOUR YEARS MANY ARE PRIVATE COMPANIES FAR SMALLER THAN WEIRTON STEEL OR UNITED AIRLINES MR BLASI ESTIMATES THAT JUST 1500 COMPANIES ARE MAJORITYOWNED BY EMPLOYEES AND ONLY A HANDFUL ARE PUBLICLY TRADED NONETHELESS THE UNITED TRANSACTION SHOWS THAT SIZE DOESN'T HAVE TO BE A BARRIER TO EMPLOYEE OWNERSHIP IF EMPLOYEES CAN OWN A COMPANY THIS SIZE THEY CAN OWN ANY COMPANY ANYWHERE CONTENDS COREY ROSEN EXECUTIVE DIRECTOR OF THE NATIONAL CENTER FOR EMPLOYEE OWNERSHIP EMPLOYEEOWNED COMPANIES HAVE BEEN AROUND FOR YEARS AND ARE OF ALL SIZES IN A RANGE OF INDUSTRIES IN 1956 PENINSULA NEWSPAPERS INC IN CALIFORNIA SOLD 72 OF THE COMPANY TO EMPLOYEE PROFITSHARING PLANS THEY GAINED WIDER ACCEPTANCE IN THE 1970S AND 1980S WHEN VARIOUS TAX BREAKS DESIGNED TO ENCOURAGE ESOPS WERE WRITTEN INTO LAW TYPICALLY ESOP COMPANIES CONTRIBUTE STOCK TO A TRUST FUND FOR EMPLOYEES THEY OR A UNION GROUP BUYING THE COMPANY CAN ALSO ARRANGE A LOAN TO BUY SHARES PAYING IT OFF OVER TIME AS THE TAXDEDUCTIBLE CONTRIBUTIONS ARE MADE INDIVIDUAL WORKERS ARE CREDITED WITH MORE SHARES IN THEORY EMPLOYEES WHO ARE OWNERS WILL WANT THE COMPANY TO MAKE MONEY MANAGERS WILL WANT TO TAP ALL THE IDEAS AND RESOURCES OF EVERY EMPLOYEE THE REALITY OFTEN FALLS SHORT BECAUSE OF THE BIG CHANGE IN ROLES EMPLOYEES WHO OWN 45 OF TRANS WORLD AIRLINES HAVE DONATED ADS AND VISITED TRAVEL AGENTS TO PROMOTE THE NEW TWA BUT THEY COMPLAIN THAT MANY MANAGERS HAVE DRAGGED THEIR FEET ON EMPLOYEE INVOLVEMENT YOU CAN'T JUST SPRINKLE ESOP PIXIE DUST OR A MAGIC POTION AND ALL THE WORKERS START DOING THE COMPANY EXERCISE SAYS RON BLOOM OF KEILIN & BLOOM AN INVESTMENT FIRM THAT ADVISED THE AIR LINE PILOTS ASSOCIATION AT UNITED AND AT NORTHWEST WHICH IS A UNIT OF WINGS HOLDINGS MR BLOOM SAYS THAT FREQUENTLY EMPLOYEE OWNERSHIP IS EITHER UNDERSOLD AND NOT DONE RIGHT OR OVERSOLD WITH UNREALISTIC EXPECTATIONS FOR THE FIRST FEW YEARS OF THE WEIRTON ESOP THE COMPANY WAS A STANDOUT POSTING PROFITS WHILE COMPETITORS LANGUISHED WORKERS PITCHED IN WITH IDEAS AND PRODUCTIVITY SOARED IN ITS MACHINE SHOP THE COMPANY HAD BEEN CONTRACTING OUT SOME WORK BECAUSE OF PAST INEFFICIENCIES AND HIGH COSTS BUT THAT SHOP EARNED SUCH A QUALITY REPUTATION THAT IT BEGAN DOING CONTRACT WORK FOR OTHER BUSINESSES BUT THE ESPRIT DE CORPS BEGAN DISSOLVING IN JANUARY 1987 WHEN ROBERT L LOUGHHEAD UNDER PRESSURE FROM THE BOARD STEPPED DOWN AS CHIEF EXECUTIVE MR LOUGHHEAD A FAVORITE AMONG WORKERS WAS SUCCEEDED BY HERBERT ELISH A BOARD MEMBER AND EXECUTIVE AT DREYFUS CORP THE MUTUALFUND CONCERN WORKERS GREW NERVOUS OVER MR ELISH'S LACK OF EXPERIENCE ESPECIALLY BECAUSE WEIRTON WAS BEGINNING A 550 MILLION CAPITALSPENDING PROGRAM PROFITS MELTED INTO LOSSES FOR ABOUT A DOZEN CONSECUTIVE QUARTERS INCLUDING THE LATEST PROJECT COST OVERRUNS SEEMED FREQUENT SPENDING FOR A MAJOR RENOVATION OF THE HOT MILL SOARED TO 320 MILLION FROM A PROJECTED 155 MILLION IN AUGUST 1992 A WORKER GROUP FILED A SHAREHOLDER SUIT ACCUSING OFFICERS AND DIRECTORS OF MISMANAGEMENT RELATING TO THE OVERRUNS DIRECTORS RESPONDED BY ASKING HOLDERS AT THE NEXT ANNUAL MEETING TO APPROVE A BYLAW CHANGE PROTECTING THE BOARD FROM SUCH CHARGES IT PASSED BY 51 AS THE COMPANY MODERNIZED EQUIPMENT TO STAY COMPETITIVE IT PILED ON DEBT MORE THAN 90 OF CAPITAL NOW IT WANTS TO RAISE CASH BY SELLING MILLIONS OF SHARES DILUTING WORKERS' VOTING POWER THE INDEPENDENT STEELWORKERS ASKED FOR TIME TO DEVISE A PLAN TO ALLOW THEM TO MAINTAIN THEIR MAJORITY VOTING POSITION ACCORDING TO ONE PERSON FAMILIAR WITH THE SITUATION BUT DIRECTORS PUSHED AHEAD WEIRTON SAYS THAT IT HAS NO CHOICE BUT TO OFFER STOCK AND THAT OTHER STEELMAKERS HAVE DONE THE SAME THING TAKING ADVANTAGE OF THE INDUSTRY'S RECOVERY IT ADDS THAT THE ESOP HAS SUCCEEDED IN KEEPING THE PLANT OPEN AND THAT WITHOUT THE PLAN WORKERS WOULD HAVE LOST THEIR JOBS A DECADE AGO THE COMPANY DECLINED TO TALK ABOUT WORKERS' SPECIFIC COMPLAINTS AND THE CONTINUING LITIGATION NOTING THAT IT WAS INVOLVED IN LABOR NEGOTIATIONS MR LOCKER THE CONSULTANT CONSIDERS WEIRTON A SUCCESS HE SAYS WEIRTON IS MAKING THE CAPITAL EXPENDITURES IT NEEDS AND HAS A MARKET STRATEGY LABOR RELATIONS WHILE TESTY ARE MUCH BETTER THAN THEY WOULD BE WITHOUT THE ESOP HE SAYS THEY HAVE GOOD PRODUCTIVITY GOOD CUSTOMER SERVICE THEY'VE ONLY HAD A CASH CRUNCH RECENTLY ESOPS REMAIN POPULAR IN THE STEEL INDUSTRY ESPECIALLY WHEN PRODUCERS ARE HAVING TOUGH TIMES JUST THIS WEEK WORKERS IN SHARPSVILLE PA BOUGHT A MAJORITY STAKE IN SHARPSVILLE QUALITY PRODUCTS A FOUNDRY FORMERLY CALLED SHENANGO INC CREDITORS WERE THREATENING TO LIQUIDATE THE COMPANY WHICH FILED FOR PROTECTION FROM CREDITORS IN DECEMBER 1992 THE COMPANY WHICH MAKES INGOT MOLDS USED BY FEWER AND FEWER STEELMAKERS IS BASING ITS HOPES PARTLY ON A NEW PRODUCT NUCLEARWASTE CONTAINERS REPUBLIC ENGINEERED STEELS INC IN MASSILLON OHIO IS HAVING DIFFERENT PROBLEMS NEARLY TWO YEARS AGO ITS WORKERS REJECTED A PROPOSAL TO CUT THE WORK FORCE AND CHANGE WORK RULES IN A BID TO IMPROVE THE BAR MAKER'S COMPETITIVENESS THE PROPOSAL AN AMENDMENT TO THE LABOR CONTRACT EVEN HAD THE BACKING OF THE UNITED STEELWORKERS AND THE LEADERSHIP OF THE LOCAL UNION BUT MEMBERS BALKED THEY ULTIMATELY CHANGED THEIR MINDS AFTER EXHAUSTIVE EXPLANATIONS AND PROMISES TO INVOLVE WORKERS IN PRODUCTION DECISIONS NOW AFTER NEARLY TWO YEARS OF EXPLAINING HOW A NEW CASTER WOULD MAKE THE COMPANY MORE PRODUCTIVE THOUGH AT SOME WORKERS' EXPENSE A NEW SIXYEAR CONTRACT HAS BEEN RATIFIED AND THE WORKERS ARE INVOLVED IN ENGINEERING THE CASTER EMPLOYEEOWNERSHIP ADVOCATES SAY ESOPS CAN HELP MAKE THE COUNTRY MORE COMPETITIVE THE NATIONAL CENTER FOR EMPLOYEE OWNERSHIP SAYS STUDIES CONDUCTED IN THE MID1980S FIND THAT COMPANIES THAT COMBINE EMPLOYEE OWNERSHIP WITH EMPLOYEEINVOLVEMENT PROGRAMS SHOW SUBSTANTIAL GAINS IN PERFORMANCE RUTGERS'S PROF BLASI SAYS THE PROPOSED UAL TRANSACTION WILL OFFER BILLIONS OF DOLLARS IN WAGE AND WORKRULE CONCESSIONS AND MAKE THE HIGHCOST AIRLINE A BETTER COMPETITOR HE SAYS WALL STREET'S FEARS THAT WORKERS WILL RUN IT ARE UNFOUNDED BECAUSE JUST THREE BOARD SEATS OUT OF 12 WOULD BE CONTROLLED BY EMPLOYEE GROUPS UAL WOULD BE LED BY GERALD GREENWALD A FORMER CHRYSLER CORP VICE CHAIRMAN AND EUGENE KEILIN AN INVESTMENT BANKER WHO HELPED CRAFT BOTH THE UNITED AND WEIRTON STEEL TRANSACTIONS SAYS MANAGEMENT WILL CLEARLY CALL THE SHOTS AT UNITED AS MANAGEMENT DOES AT OTHER ESOPS THE COMPANY IS RUN LIKE ANY OTHER COMPANY BY A CEO AND A MANAGEMENT SELECTED BY HIM WHO IS RESPONSIBLE TO THE BOARD OF DIRECTORS HE SAYS COLLECTIVE BARGAINING HE ADDS WOULD BE VIGOROUS AND TWOSIDED AS AT OTHER ESOPS HE SAYS CAPITALSPENDING PLANS AREN'T CHANGING WITH THE PROPOSED TRANSACTION THERE ARE PROVISIONS IN THIS DEAL TO ISSUE ADDITIONAL EQUITY IF MANAGEMENT BELIEVES IT'S THE RIGHT COURSE 9312230136 931223 AMERICAN EXPRESS WINS DISMISSAL OF HOLDERS SUIT BY MARGARET A JACOBS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A SHAREHOLDER LAWSUIT AGAINST AMERICAN EXPRESS CO STEMMING FROM ITS 1988 SMEAR CAMPAIGN AGAINST BANKER EDMOND SAFRA WAS DISMISSED BY A FEDERAL JUDGE IN A 25PAGE OPINION US DISTRICT COURT JUDGE PETER K LEISURE FOUND THAT THE SHAREHOLDERS FAILED TO ESTABLISH LEGAL CLAIMS UNDER EITHER FEDERAL RACKETEERING LAW OR FEDERAL SECURITIES LAW THE DECISION DOESN'T ADDRESS THE UNDERLYING FACTS OF THE PLAINTIFFS' ALLEGATIONS BUT DOES PRECLUDE THEM FROM PROCEEDING FURTHER IN FEDERAL COURT A SEPARATE ACTION UNDER STATE LAW STILL IN THE PRETRIAL FACTFINDING PHASE ISN'T EXPECTED TO BE AFFECTED BY THE DECISION THE FEDERAL CASE INVOLVED EFFORTS IN 1988 AND 1989 TO SPREAD FALSE RUMORS LINKING MR SAFRA A RIVAL INTERNATIONAL BANKER TO DRUG TRAFFICKING MONEY LAUNDERING AND THE IRANCONTRA AFFAIR COMPANY EXECUTIVES WERE ALLEGEDLY CONCERNED THAT MR SAFRA A FORMER VICE CHAIRMAN AND DIRECTOR OF AMERICAN EXPRESS WAS PLANNING TO OPEN A BANK IN SWITZERLAND AMERICAN EXPRESS BASED IN NEW YORK HAS OPERATIONS IN CREDIT CARDS TRAVEL SERVICES AND FINANCIAL SERVICES THE CAMPAIGN CAME TO LIGHT IN JULY 1989 WHEN AMERICAN EXPRESS ISSUED AN APOLOGY FOR WHAT IT CALLED AN UNAUTHORIZED AND SHAMEFUL EFFORT AND AGREED TO PAY 8 MILLION TO MR SAFRA AND TO CHARITIES HE SELECTED THE SETTLEMENT WAS REACHED AFTER MR SAFRA PERSONALLY CONFRONTED FORMER COMPANY CHAIRMAN JAMES D ROBINSON III IN MARCH 1989 AND MR SAFRA'S ATTORNEY SUBSEQUENTLY THREATENED LEGAL ACTION FOLLOWING THE PAYMENT TO MR SAFRA SEVERAL PROMINENT PLAINTIFFS' LAW FIRMS FILED FEDERAL SHAREHOLDER SUITS AGAINST SEVERAL FORMER AND CURRENT DIRECTORS AND OFFICERS OF AMERICAN EXPRESS THE SUITS WHICH WERE CONSOLIDATED INTO ONE ACTION BEFORE JUDGE LEISURE CLAIM THAT THE 8 MILLION PAYMENT WAS A WASTE OF CORPORATE ASSETS AND THAT THE EMPLOYEES RESPONSIBLE FOR THE CAMPAIGN SHOULD HAVE MADE THE PAYMENT PERSONALLY IN ADDITION THE SUITS CHARGE THAT MR ROBINSON AND OTHERS DIDN'T PROPERLY SUPERVISE THE LOWERLEVEL EMPLOYEES INVOLVED IN PLANTING FALSE NEWSPAPER STORIES ABOUT MR SAFRA IN A BRIEF STATEMENT THE COMPANY SAID IT WAS DELIGHTED WITH THE DECISION PLAINTIFFS' ATTORNEY EDWARD LABATON SAID HE WAS DISAPPOINTED BUT COULDN'T COMMENT FURTHER BECAUSE HE HADN'T SEEN THE FULL OPINION 9312230135 931223 LEISURE & ARTS BEST SELLERS COMPILED BY PUBLISHERS WEEKLY FROM DATA FROM LARGECITY BOOKSTORES BOOKSTORE CHAINS AND LOCAL BESTSELLER LISTS ACROSS THE US COPYRIGHT 1993 REED PUBLISHING USA 9312230134 931223 REVIEW & OUTLOOK EDITORIAL ASIDES PERSONAL AFFAIRS SENATOR KAY BAILEY HUTCHISON A FORMER TEXAS TREASURER HAS BEEN INDICTED FOR USING STATE EMPLOYEES AND STATE EQUIPMENT FOR PERSONAL BENEFIT AND REMOVING RECORDS YESTERDAY A TEXAS JUDGE REFUSED TO DISMISS THE INDICTMENT AND INDICATED HER TRIAL MAY GET UNDER WAY NEXT MONTH AMONG THE ACCUSATIONS ARE THAT SHE HAD STATE WORKERS SHOP FOR HER AND MAKE HER DOCTOR'S APPOINTMENTS NOW ALL THIS MAY WELL BE POLITICAL AND REMAINS TO BE PROVEN IN COURT BUT JUSTICE OF SOME SORT IS GRINDING FORWARD WITH THE CASE IF CONVICTED OF USING STATE EMPLOYEES FOR PERSONAL MATTERS THE REPUBLICAN SENATOR FACES A MAXIMUM SENTENCE OF 51 YEARS IN PRISON 9312230133 931223 BUSINESS BRIEF BED BATH & BEYOND INC FISCAL 3RDQUARTER EARNINGS ROSE 35 ON IMPROVED SALES BED BATH & BEYOND INC SPRINGFIELD NJ REPORTED IMPROVED EARNINGS AND SALES FOR THE THIRD QUARTER ENDED NOV 28 THE HOME ACCESSORIES AND FURNISHINGS CHAIN SAID NET INCOME WAS 56 MILLION OR 16 CENTS A SHARE UP 35 FROM THE YEAREARLIER 41 MILLION OR 12 CENTS A SHARE THE YEAREARLIER PERSHARE AMOUNT WAS ADJUSTED TO REFLECT A 2FOR1 STOCK SPLIT IN JULY SALES FOR THE QUARTER TOTALED 811 MILLION UP 44 FROM 565 MILLION COMPARABLESTORE SALES OR SALES AT STORES OPEN AT LEAST A YEAR FOR THE THIRD QUARTER INCREASED ABOUT 13 THE COMPANY SAID 9312230132 931223 WALMART ALLOWED TO BUILD FIRST STORE IN VERMONT ST ALBANS VT WALMART STORES INC GOT PERMISSION TO BUILD A STORE IN THIS TOWN MARKING ITS ENTRY IN VERMONT THE LAST STATE IN THE CONTIGUOUS US WITHOUT A WALMART VERMONT RESIDENTS AND RIVAL MERCHANTS HAVE ERECTED MANY REGULATORY ROADBLOCKS IN THE FACE OF WALMART'S EXPANSION EFFORTS WALMART SAID THE APPROVAL CAME AFTER HEARINGS UNDER A VERMONT ENVIRONMENTAL LAW THAT LETS REGULATORS EVALUATE IMPACTS ON AESTHETICS AND THE ECONOMY OF A REGION AS WELL AS AIR WATER AND TRAFFIC WALMART SAID IT ALSO AGREED TO SELL A RANGE OF VERMONTMADE PRODUCTS AT ALL ITS STORES FOLLOWING A PRESENTATION AT WALMART HEADQUARTERS IN BENTONVILLE ARK BY VERMONT GOV HOWARD DEAN 9312230130 931223 MUTUAL FUNDS MUTUAL FUNDS SET UP FIRE DRILLS TO DEAL WITH HEATED CRISIS SELLING BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL WHAT HAPPENS IF ARMAGEDDON STRIKES THE STOCK OR BOND MARKET MUTUALFUND COMPANIES AREN'T WAITING TO FIND OUT THEY ARE REFINING CONTINGENCY PLANS WALKING THROUGH FIRE DRILLS WITH THEIR FUND MANAGERS AND BEEFING UP THEIR PHONEANSWERING CAPACITIES TO HANDLE POTENTIAL CALLS FROM INVESTORS WANTING TO DUMP THEIR FUNDS FOR INSTANCE FIDELITY INVESTMENTS THE GIANT BOSTONBASED FUND GROUP HAS BEEN MODELING PHONE VOLUME AND REDEMPTIONS BASED ON VARIOUS MARKET SCENARIOS IT IS COY ABOUT DISCLOSING EXACTLY WHAT SCENARIOS IT IS CONSIDERING BUT A SPOKESWOMAN DOES CONFIRM THAT FIDELITY HAS LINED UP MORE THAN 1000 RESERVISTS TO HELP ANSWER TELEPHONES IN A PINCH AND THAT IT HAS BRIEFED FUND MANAGERS ON WHAT STEPS TO TAKE IN CASE OF BIG REDEMPTION ACTIVITY IN DENVER INVESCO FUNDS GROUP RECENTLY FINISHED CONSTRUCTION OF AN OFFSITE BUILDING COMPLETE WITH 100 COMPUTER TERMINALS TO HANDLE SHAREHOLDER CALLS SHOULD THE MAIN SITE LOSE POWER OR PHONE VOLUME SUDDENLY SWAMP ITS MAIN FACILITY MEANWHILE IN KALAMAZOO MICH THE PARKSTONE FUNDS UNIT OF FIRST OF AMERICA BANK CORP HAS INSTALLED EXTRA PHONE LINES AND TRAINED NONPHONE STAFFERS INCLUDING THE SENIOR VICE PRESIDENT IN CHARGE OF MUTUAL FUNDS TO TAKE CALLS IF NECESSARY AS PART OF ITS CRISISMANAGEMENT STRATEGY PARKSTONE CAN EVEN WHIP UP VIDEOS OR ELECTRONIC SEMINARS OF FUND MANAGERS' COMMENTARY ON THE MARKETS AND ELECTRONICALLY ZAP THEM TO THE BANK'S BRANCHES ON SHORT NOTICE FUND EXECUTIVES ARE QUICK TO SAY THEY AREN'T REALLY EXPECTING THE MARKETS TO CRASH BUT THEY DO WANT TO BE PREPARED FOR POTENTIAL REVERSALS OF FORTUNE ESPECIALLY WHEN PHONE VOLUME IS ALREADY AT RECORD LEVELS THEY ADD WE'VE SPENT A LOT MORE TIME IN RECENT YEARS ON CONTINGENCY PLANNING SAYS JANE JAMIESON A SENIOR VICE PRESIDENT AT FIDELITY WE RECOGNIZE THAT THERE'S A LOT OF UNPREDICTABILITY IN THE BUSINESS BEEFING UP THE PHONE LINES HELPED THE FUNDS SMOOTHLY HANDLE THE UNPRECEDENTED 100 BILLIONPLUS INFLOW FROM INVESTORS CLAMORING TO BUY FUNDS THIS YEAR FIDELITY ALONE EXPECTS TO GET MORE THAN 70 MILLION PHONE CALLS BY THE END OF THE YEAR MORE THAN 30 ABOVE LAST YEAR'S RECORD VOLUME EVEN BEFORE THIS YEAR'S ONSLAUGHT OF NEW MONEY MUTUALFUND COMPANIES HAD A TASTE OF WHAT CAN HAPPEN WHEN INVESTORS MOVE IN A PACK ON SEVERAL OCCASIONS IN RECENT YEARS FUNDS' PHONE LINES AND BACK OFFICES HAVE COME UNDER HEAVY STRAIN FOLLOWING THE 1987 STOCKMARKET CRASH FOR INSTANCE WHEN INVESTORS RACED TO EXIT FUNDS THEN AGAIN IN 1991 WHEN INVESTORS STAMPEDED BACK IN WE ARE COMMITTED TO NEVER LETTING THE TELEPHONE TIEUPS OF OCT 19 1987 HAPPEN TO US AGAIN SAYS JOHN MCGONIGLE VICE PRESIDENT AT SAN FRANCISCOBASED DISCOUNT BROKER CHARLES SCHWAB & CO WHICH SELLS ITS OWN AND OTHER GROUPS' MUTUAL FUNDS TO DEAL WITH SUCH SURGES IN PHONE VOLUME MANY FIRMS INCLUDING T ROWE PRICE ASSOCIATES BALTIMORE AND VANGUARD GROUP VALLEY FORGE PA HAVE TRAINED RESERVISTS AT ALL LEVELS OF THE COMPANY TO STEP IN AND HANDLE CUSTOMER CALLS FIDELITY PARKSTONE T ROWE PRICE AND OTHERS HAVE BEEN BEEFING UP THOSE FORCES RECENTLY INVESTORS WHO WANT ADVICE DURING A MARKET PANIC WON'T GET ANY BY CALLING A FUND REPRESENTATIVE HOWEVER MUTUALFUND PHONE REPS UNLIKE STOCK BROKERS CAN'T GIVE DIRECT ANSWERS TO THE FREQUENTLY ASKED QUESTION WHAT SHOULD I DO INSTEAD NEAL LITVACK EXECUTIVE VICE PRESIDENT OF MARKETING AT FIDELITY AND A TELEPHONE RESERVIST SAYS HE WOULD TELL CALLERS THAT REDEEMING OR MOVING INTO A MONEYMARKET FUND WOULD BE YOUR PREROGATIVE BUT BEFORE HE EXECUTED AN ORDER TO SELL MR LITVACK SAYS HE WOULD ASK SHAREHOLDERS WHY THEY GOT INTO THE FUND IN THE FIRST PLACE IF IT WERE TO INVEST FOR A LONGTERM GOAL LIKE RETIREMENT HE WOULD ASK THEM TO CONSIDER STICKING WITH THE FUND IN VIEW OF THE HISTORY OF STRONG PERFORMANCE BY STOCKS OVER LONG PERIODS AND THE DIFFICULTY OF ACCURATELY TIMING THE STOCK MARKET DEALING WITH INVESTORS ISN'T ALWAYS SO EASY VANGUARD RESERVIST GEORGE U SAUTER WHO RUNS VANGUARD'S LARGE STOCKINDEXFUND GROUP REMEMBERS TRYING TO KEEP HIS COOL WHEN A CROSS INVESTOR NOT KNOWING TO WHOM HE WAS SPEAKING INSISTED A MONKEY CAN RUN AN INDEX FUND MR SAUTER SAYS THE CALLER WAS APOLOGETIC AND INCREDIBLY EMBARRASSED AFTER MR SAUTER TOLD HIM HE RAN SUCH A FUND INDEX FUNDS ARE DESIGNED TO TRACK A BROAD MARKET INDEX SUCH AS THE STANDARD & POOR'S 500 INVESTORS WHO DON'T WANT TO BOTHER WITH TALK COULD CALL AUTOMATED PHONE LINES NOW INSTALLED BY MANY FUND GROUPS THERE THEY CAN SWITCH OR REDEEM THEIR ACCOUNTS BY PUNCHING CODES INTO TOUCHTONE PHONES FUND GROUPS HOPE SUCH AUTOMATED LINES WILL ALSO HELP THEM HANDLE HUGE SURGES IN VOLUME IN FACT AT TIMES OF CRISIS SUCH AUTOMATED LINES ARE GOING TO BE CRITICAL TO ALLOW CONSUMERS TO GET THROUGH TO THEIR FUND COMPANIES SAYS LAURA PARSONS A SPOKESWOMAN AT INVESCO DESPITE ALL THE CONTINGENCY PLANS NOBODY KNOWS FOR SURE HOW INDIVIDUALS WILL REACT TO THE NEXT BEAR MARKET OPTIMISTS ARGUE THAT INVESTORS WOULD SEE A MARKET DOWNDRAFT AS A CHANCE NOT TO SELL BUT TO ADD TO HOLDINGS AT BARGAIN PRICES AFTER THE RUSSIAN COUP WE HAD NET BUYERS SAYS MS PARSONS PEOPLE ARE LOOKING HERE FOR OPPORTUNITIES TO BUY SHE ADDS I DON'T KNOW THAT YOU'RE GOING TO GET THAT KIND OF NET PANIC ANYMORE THE OFFICIAL POSITION OF THE FUND INDUSTRY AS ENUNCIATED BY THE INVESTMENT COMPANY INSTITUTE TRADE GROUP SUPPORTS THAT VIEW EARLIER THIS YEAR THE ICI SAID THERE WERE NO MASSIVE LIQUIDATIONS OF HOLDINGS BY STOCK MUTUALFUND MANAGERS ON OCT 19 1987 THE DAY THE STOCK MARKET CRASHED BUT WHILE FEW INDIVIDUALS PULLED THE RIPCORD ON THE ACTUAL DAY OF THE CRASH MANY DID BAIL OUT LATER ON STOCK FUNDS SUFFERED NET OUTFLOWS OF 10 BILLION IN THE THIRD QUARTER OF 1987 WHILE AN ADDITIONAL NET 16 BILLION EXITED THOSE FUNDS IN 1988 UNDER THE CIRCUMSTANCES MANY FUND EXECUTIVES DON'T SHARE ICI'S CONFIDENCE THAT SHAREHOLDERS WON'T PANIC THERE COULD BE A HUGE AND RAPID FLOW OUT OF MUTUAL FUNDS IN RESPONSE TO DROPS IN THE STOCK OR BOND MARKET A KEITH BRODKIN CHAIRMAN OF BOSTONBASED MASSACHUSETTS FINANCIAL SERVICES SAID AT A RECENT NEWS CONFERENCE IT'S SOMETHING THAT HAS ME TERRIBLY TROUBLED 9312230129 931223 WEDNESDAY'S MARKETS BOND SURGE LIFTS STOCKS DOLLAR SINKS LONG TREASURY GAINS OVER 1 POINT AS FEARS OF FED MOVE SUBSIDE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL SURGING BOND PRICES DROVE STOCK PRICES HIGHER THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1704 POINTS TO 376219 STANDARD & POOR'S 500STOCK INDEX ROSE 202 TO 46732 AND THE NASDAQ COMPOSITE INDEX EDGED UP 044 TO 75607 ANALYSTS SAID THE BOND RALLY RESULTED LARGELY FROM TRADERS' BUYING BONDS TO COVER SHORT POSITIONS THEY HAD ACQUIRED IN ANTICIPATION OF A POSSIBLE INTEREST RATE INCREASE BY THE FEDERAL RESERVE WAYNE F WONG SENIOR FIXEDINCOME STRATEGIST AT MARINVEST A UNIT OF HONGKONG & SHANGHAI BANK SAID THE FEAR OF A FED TIGHTENING DISSIPATED SOMEWHAT OUR VIEW IS THE FED WILL DRAG IT OUT UNTIL THEY SEE SOME REAL STRONG ECONOMIC NUMBERS MR WONG SAID WE DON'T SEE A TIGHTENING UNTIL AT LEAST THE FEBRUARY REFUNDING BONDS WERE FURTHER AIDED BY A BETTERTHANEXPECTED TREASURY AUCTION OF 11 BILLION IN FIVEYEAR NOTES YESTERDAY'S STRONG BIDDING FOLLOWED TUESDAY'S SUCCESSFUL SALE OF TWOYEAR NOTES MICKEY D LEVY CHIEF FINANCIAL ECONOMIST AT NATIONSBANK VIEWED THE BOND MARKET'S ADVANCE AS LARGELY A REBOUND FROM RECENT DECLINES THE CONSENSUS HAS BEEN THAT THE STRONG ECONOMY WILL CONTINUE INTO 1994 AND WILL GENERATE HIGHER INFLATION MR LEVY SAID BUT WHAT I THINK WILL EVENTUALLY UNFOLD IS THAT WE'LL GET ECONOMIC MOMENTUM WITHOUT INFLATIONARY PRESSURES STOCK PRICES FOLLOWED THE LEAD OF BONDS AND BENEFITED FROM SEVERAL COMPUTERGUIDED BUY PROGRAMS THE DOW JONES TRANSPORTATION AVERAGE JUMPED 1458 TO 176553 AMID STRONG GAINS FOR UAL PARENT OF UNITED AIRLINES WHICH CLIMBED 4 1/4 TO 148 1/2 AND SOUTHWEST AIRLINES WHICH WAS UP 1 1/8 TO 36 5/8 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 087 TO 11102 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 267068460 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1151 ISSUES ROSE AND 953 FELL BOND PRICES RALLIED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED NEARLY 1 1/4 POINT OR NEARLY 1250 FOR EACH 1000 FACE AMOUNT TO YIELD 621 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17015 MARKS AND 11035 YEN COMPARED WITH 17103 MARKS AND 11118 YEN TUESDAY 9312230128 931223 CURRAGH TRADING SUSPENDED TORONTO THE ONTARIO SECURITIES COMMISSION SUSPENDED TRADING OF SHARES OF CURRAGH INC BECAUSE THE COMPANY FAILED TO FILE FINANCIAL STATEMENTS FOR THE PERIOD ENDING SEPT 30 THE ASSETS OF CURRAGH A MINING CONCERN WERE PLACED UNDER RECEIVERSHIP EARLIER THIS YEAR WHEN THE COMPANY WAS UNABLE TO FILE A RESTRUCTURING PLAN IN AN ONTARIO COURT SOME OF THE ASSETS HAVE SINCE BEEN SOLD BY THE RECEIVERS TRADING OF CURRAGH'S SHARES IS SUSPENDED ON BOTH THE TORONTO STOCK EXCHANGE AND THE NEW YORK STOCK EXCHANGE THE COMMISSION WILL HOLD A HEARING JAN 4 TO DECIDE WHETHER TO REINSTATE TRADING SHARES LAST TRADED AT 11 CANADIAN CENTS 8 US CENTS ON THE TORONTO STOCK EXCHANGE TUESDAY 9312230127 931223 ACORN VENTURE MAKES PURCHASE POMPANO BEACH FLA ACORN VENTURE CAPITAL CORP SAID IT ACQUIRED ALL THE STOCK OUTSTANDING OF AUTOMOTIVE INDUSTRIES INC OF JACKSONVILLE FLA FROM GENERAL TIRE INC AND OTHER MINORITY STOCKHOLDERS TERMS WEREN'T DISCLOSED THE COMPANY SAID AUTOMOTIVE INDUSTRIES OPERATES 27 AUTOMOTIVESUPPLY RETAIL CENTERS MOSTLY IN FLORIDA AND GEORGIA THE COMPANY SAID THE ACQUISITION STRENGTHENS ITS POSITION IN THE AUTOMOTIVE RETAIL MARKET IN LIGHT OF THE OPERATIONS OF ITS SERVICEMAX TIRE & AUTO CENTERS UNIT 9312230126 931223 PREMIUM SALES CORP RECEIVER FILES SUIT NAMING OTHER FIRMS MIAMI THE COURTAPPOINTED RECEIVER FOR PREMIUM SALES CORP A FOODTRADING CONCERN ACCUSED OF DEFRAUDING INVESTORS OF MORE THAN 300 MILLION FILED A LAWSUIT CLAIMING THAT EMPLOYEES OF THREE SEPARATE COMPANIES WERE PAID UP TO 600000 EACH FOR AIDING THE SCHEME THE LAWSUIT FILED IN US DISTRICT COURT HERE IMPLICATES THE EMPLOYEES THEIR COMPANIES PREMIUM SALES EXECUTIVES AND OTHERS IN THE ALLEGED FRAUD SEPARATELY A GROUP OF INVESTORS FILED A LAWSUIT AGAINST THE SCHEME'S ALLEGED PERPETRATORS ALSO IN FEDERAL COURT IN MIAMI BOTH ACTIONS SEEK THE RETURN OF INVESTORS' MONEY FEDERAL REGULATORS WHO PLACED PREMIUM SALES IN RECEIVERSHIP IN JULY HAVE SAID THAT MANY OF THE COMPANY'S REPORTED DEALINGS WERE SHAM OR OVERSTATED TRANSACTIONS PREMIUM SALES RAISED HUNDREDS OF MILLIONS OF DOLLARS FROM INVESTORS BY PROMISING RETURNS IT COULDN'T PRODUCE ACCORDING TO THE LAWSUITS ATTORNEYS REPRESENTING THE COMPANY'S FORMER EXECUTIVES COULDN'T BE REACHED FOR COMMENT THE COMPANY WAS ENGAGED IN THE DIVERSION OF GROCERYSTORE PRODUCTS A BUSINESS IN WHICH COMPANIES BUY HUGE QUANTITIES OF FOOD AND OTHER ITEMS AT A DISCOUNT IN VARIOUS PARTS OF THE COUNTRY AND SELL THEM AT A HIGHER PRICE IN OTHER REGIONS ACCORDING TO THE LAWSUITS EMPLOYEES OF LONGS DRUG STORES WALNUT CREEK CALIF FLEMING COS OKLAHOMA CITY AND PUEBLO INTERNATIONAL INC CAROLINA PUERTO RICO HELPED PERPETUATE THE FRAUD AT PREMIUM SALES BY CONFIRMING FOR INVESTORS TRANSACTIONS THAT DIDN'T ACTUALLY TAKE PLACE EXECUTIVES AT LONGS DRUG STORES SAID THEY HADN'T YET SEEN THE LAWSUIT AND THUS COULDN'T RESPOND ROBERT STAUTH PRESIDENT AND CHIEF EXECUTIVE OF FLEMING SAID THE COMPANY WASN'T INVOLVED IN THE ALLEGED FRAUD AND WOULD FIGHT THE LEGAL ACTION EXECUTIVES AT PUEBLO INTERNATIONAL COULDN'T BE REACHED FOR COMMENT 9312230125 931223 WHO'S NEWS TIMES MIRROR CO TIMES MIRROR CO LOS ANGELES DEBRA A GASTLER DIRECTOR OF TAXES WAS ELECTED VICE PRESIDENT TAXES FOR THIS MEDIA AND INFORMATION CONCERN MS GASTLER 40 YEARS OLD SUCCEEDS JACK L PLANK 63 WHO AS PART OF A PLANNED MANAGEMENT CHANGE IS UNDERTAKING SPECIAL PROJECTS IN THE TAXPLANNING AREA 9312230124 931223 CANADIAN HOLIDAY SCHEDULES BANKS AND GOVERNMENT OFFICES WILL CLOSE MONDAY AND TUESDAY IN CANADA FOR THE CHRISTMAS AND BOXING DAY HOLIDAYS STOCK EXCHANGES WILL CLOSE TOMORROW AND MONDAY AND BE OPEN TUESDAY THERE WON'T BE ANY MAIL DELIVERY ON MONDAY AND TUESDAY 9312230122 931223 INTERNATIONAL HIGH JAPANESE TRADE AIDE RESIGNS AFTER PUBLIC FEUD TOKYO A TOP BUREAUCRAT AT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY RESIGNED AFTER AN UNUSUAL PUBLIC FEUD WITH A CABINET MINISTER THE WEEKLONG BATTLE BETWEEN MASAHISA NAITO A 32YEAR MITI VETERAN AND HIROSHI KUMAGAI A POLITICIAN WHO HAS BEEN MITI MINISTER SINCE AUGUST FLARED UP INTO A BROADER DEBATE ABOUT THE BALANCE OF POWER BETWEEN POLITICIANS AND THE BUREAUCRACY WHILE JAPANESE MINISTERS ARE NOMINALLY IN CHARGE OF THEIR AGENCIES THEY RARELY EXERT THEMSELVES OVER POLICY OR PERSONNEL MATTERS AND BUREAUCRATS HAVE LONG HAD DISCRETION PERHAPS UNMATCHED IN OTHER DEMOCRACIES LEADERS OF JAPAN'S NEW RULING COALITION GOVERNMENT HAVE VOWED TO CURB THE POWER OF THE BUREAUCRACY AND MR NAITO BECAME AN EARLY TEST CASE MR KUMAGAI LAST WEEK ASKED MR NAITO DIRECTORGENERAL OF THE INDUSTRIAL POLICY BUREAU TO RESIGN ALLEGING THAT HE HAD IMPROPERLY TRIED TO HELP A JUNIOR OFFICIAL WHO WAS LEAVING MITI TO RUN FOR PARLIAMENT MR NAITO HAD REPORTEDLY GIVEN THE OFFICIAL AN UNUSUALLY RAPID PROMOTION TO IMPROVE HIS RESUME MR NAITO HAD ORIGINALLY REFUSED MR KUMAGAI'S REQUEST TO STEP DOWN 9312230121 931223 POLITICS & POLICY ICKES IS NAMED TO HEAD EFFORTS ON HEALTH PLAN WASHINGTON PRESIDENT CLINTON NAMED HAROLD ICKES A NEW YORK LABOR LAWYER AND LONGTIME FRIEND TO COORDINATE THE ADMINISTRATION'S EFFORTS TO WIN PASSAGE OF THE HEALTHCARE BILL WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY TOLD REPORTERS YESTERDAY THAT MR ICKES WILL BECOME DEPUTY CHIEF OF STAFF RESPONSIBLE FOR PUBLIC AND POLITICAL OUTREACH HIS MAJOR ASSIGNMENT WILL BE PUSHING THE HEALTHCARE PLAN THE PRESIDENT WAS SET TO NAME MR ICKES TO THE POSITION A FEW WEEKS AGO BUT MR ICKES TOLD THE WHITE HOUSE HE DIDN'T WANT THE JOB AT THE TIME ADMINISTRATION OFFICIALS INDICATED THERE WAS A POSSIBILITY THAT MR ICKES WOULD RECONSIDER IRA MAGAZINER THE WHITE HOUSE AIDE WHO OVERSAW THE PROCESS OF DRAFTING THE CLINTON HEALTHCARE PROPOSAL WILL CONTINUE AS THE TOP POLICY ADVISER ON HEALTH CARE MR MCLARTY SAID GEORGE STEPHANOPOULOS ONE OF MR CLINTON'S CLOSEST AIDES ALSO WILL BE A MAJOR PLAYER IN THE ADMINISTRATION'S HEALTHCARE EFFORTS HE ADDED MR ICKES WILL BEGIN HIS NEW JOB JAN 3 9312230120 931223 TECHNOLOGY & MEDICINE SEXUAL HARASSMENT OF WOMEN DOCTORS BY PATIENTS IS COMMON STUDY SUGGESTS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL IN THE EARLY 1980S PHYSICIAN CLARITA HERRERA AGREED TO SEE A NEW PATIENT COMPLAINING OF STOMACH PROBLEMS WEARING A SUIT HE APPEARED UNREMARKABLE BUT TO HER SHOCK HE EMERGED FROM THE DRESSING ROOM STARK NAKED AND OBVIOUSLY DISPLAYING HIMSELF SAYS THE NEW YORK INTERNIST DR HERRERA FEARED FOR HER SAFETY BUT SAYS OTHER PEOPLE WERE IN THE OFFICE AND THE PATIENT COMPLIED WITH HER REQUEST TO LEAVE THE INCIDENT WAS JUST ONE EXAMPLE ALBEIT EXTREME OF SEXUAL HARASSMENT BY PATIENTS THAT DR HERRERA SAYS SHE'S EXPERIENCED IN 12 YEARS OF PRIVATE PRACTICE OTHER MALE PATIENTS HAVE MADE INAPPROPRIATE COMMENTS ABOUT HER APPEARANCE WHILE SHE WAS EXAMINING THEM SHE SAYS DR HERRERA'S EXPERIENCE ISN'T UNUSUAL SEXUAL HARASSMENT OF FEMALE PHYSICIANS BY THEIR PATIENTS IS A COMMON BUT HIDDEN PROBLEM SAYS SUSAN P PHILLIPS A FAMILY PHYSICIAN AND ASSISTANT PROFESSOR OF MEDICINE AT QUEEN'S UNIVERSITY IN KINGSTON ONTARIO IN A STUDY PUBLISHED IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE DR PHILLIPS SURVEYED MORE THAN HALF OF THE 1064 FEMALE FAMILY PHYSICIANS IN ONTARIO AND FOUND THAT AMONG THE 422 PHYSICIANS WHO RESPONDED MORE THAN 75 SAID THEY HAD EXPERIENCED SUCH HARASSMENT UNLIKE SEXUAL HARASSMENT THAT OCCURS IN OTHER PROFESSIONAL AND SOCIAL SITUATIONS FEMALE DOCTORS ARE PARTICULARLY VULNERABLE BECAUSE THEY MUST PHYSICALLY EXAMINE MEN BUT LIKE OTHER FORMS OF SEXUAL HARASSMENT IT'S THE DESIRE FOR POWER RATHER THAN SEX THAT PROMPTS THE PATIENT'S BEHAVIOR PHYSICIANS SAY IF A MAN HAS A PROBLEM ACCEPTING A WOMAN IN A POSITION OF POWER IT CAN BE A THREATENING SITUATION FOR HIM AND HE MAY EXPRESS THAT SENSE OF THREAT BY MAKING SEXUAL ADVANCES SAYS DR HERRERA WHO IS PRESIDENT OF A LOCAL ASSOCIATION OF WOMEN PHYSICIANS CHERYL E WEINSTEIN A GENERAL INTERNIST WITH THE CLEVELAND CLINIC FOUNDATION IN OHIO SAYS PATIENTS ARE VERY FRIGHTENED AND FEEL POWERLESS AGAINST ILLNESS SOME OF THEM DEAL WITH THEIR OWN FEARS BY MACHO TALK IN THE SURVEY CONDUCTED WITH MARGARET S SCHNEIDER OF THE ONTARIO INSTITUTE FOR STUDIES IN EDUCATION IN TORONTO MORE THAN HALF OF THE FEMALE PHYSICIANS RESPONDING DESCRIBED INSTANCES OF HARASSMENT SUCH AS SUGGESTIVE LOOKS AND SEXUAL REMARKS THIRTYONE PERCENT REPORTED SUGGESTIVE EXPOSURE OF BODY PARTS ABOUT 19 REPORTED BRUSHING TOUCHING OR GRABBING AND ONE RESPONDENT EVEN REPORTED RAPE ATTEMPTED RAPE PHYSICIANS ALSO SAID PATIENTS HAD REQUESTED GENITAL EXAMINATIONS WITHOUT CAUSE AND OFFERED GIFTS SUCH AS TAPED LOVE SONGS MOST OF THE INCIDENTS OCCURRED IN THE PRIVACY OF AN OFFICE THE RESEARCHERS SAID WHILE THE INCIDENTS LEFT THE DOCTORS ANGRY OR FEARFUL ONLY A MINORITY CONSIDERED SEXUAL HARASSMENT BY PATIENTS TO BE A SERIOUS PROBLEM THAT RESULT WAS PUZZLING SAYS DR PHILLIPS WHO SAYS MANY RESPONDENTS SEEMED TO BLAME THEMSELVES OR A PATIENT'S INTOXICATION OR MENTAL ILLNESS BUT SOME PHYSICIANS SAY SEXUAL HARASSMENT BY PATIENTS IS MANAGEABLE AND FAR LESS INTIMIDATING THAN HARASSMENT BY COLLEAGUES OR SUPERVISORS CATHERINE HENRY AN INTERNIST IN STERLING HEIGHTS MICH SAYS AN EXPERIENCE OF SEXUAL HARASSMENT BY A COLLEAGUE LED HER TO BLAME HERSELF BUT SHE COULD EASILY DISMISS ADVANCES BY PATIENTS I ACCEPT THINGS FROM MY PATIENTS THAT I WOULDN'T ACCEPT FROM MY COLLEAGUES OR COWORKERS SAYS DR WEINSTEIN I DON'T THINK SEXUAL HARASSMENT IS APPROPRIATE FROM PATIENTS BUT I JUST IGNORE IT PALMA FORMICA A MEMBER OF THE AMERICAN MEDICAL ASSOCIATION'S BOARD OF TRUSTEES AND PROFESSOR OF CLINICAL FAMILY MEDICINE AT ROBERT WOOD JOHNSON MEDICAL SCHOOL IN NEW BRUNSWICK NJ SAYS THE AMA HAS OPPOSED SEXUAL HARASSMENT IN ALL FIELDS THE STUDY'S RESULTS POINT TO A NEED FOR MORE PHYSICIAN TRAINING ON HANDLING PROBLEM PATIENTS TO LEARN HOW TO ASSERT YOUR AUTHORITY SHE SAYS ADDING THAT MALE PHYSICIANS SOMETIMES ENCOUNTER SIMILAR PROBLEMS WITH FEMALE PATIENTS TECHNIQUES SHE'S DEVELOPED OVER THE YEARS INCLUDE LOWERING HER VOICE AND BECOMING MORE AUTHORITATIVE WEARING THE TRADITIONAL WHITE COAT AND LIMITING SOCIAL CHITCHAT WITH PATIENTS YOU LEARN TO BE ON GUARD AND TRY TO BE IN CONTROL OF THE SITUATION SHE SAYS 9312230119 931223 PENTAGON'S POLICY ON GAYS WILL ALLOW ORIENTATION' WASHINGTON UNVEILING REGULATIONS THAT WILL GOVERN ITS NEW DON'T ASK DON'T TELL DON'T PURSUE POLICY ON GAYS IN THE MILITARY THE PENTAGON DREW A FINE LINE BETWEEN HOMOSEXUAL ORIENTATION AND ACTION UNDER THE NEW REGULATIONS SCHEDULED TO TAKE EFFECT IN EARLY FEBRUARY THE FIRST WILL BE ALLOWED BUT THE SECOND WON'T SEXUAL ORIENTATION IS CONSIDERED A PERSONAL AND PRIVATE MATTER THE PENTAGON SAID THAT MEANS A SOLDIER CAN GO TO A GAY BAR SUBSCRIBE TO A GAY MAGAZINE AND MARCH IN A GAYRIGHTS RALLY IN CIVILIAN CLOTHES AND STILL REMAIN A MEMBER IN THE SERVICE IN GOOD STANDING A PENTAGON STATEMENT SAID BUT HE OR SHE MAY NOT PUBLICLY HOLD HANDS OR KISS A MEMBER OF THE SAME SEX DEFENSE SECRETARY LES ASPIN SAID HE JUDGED THE NEW POLICY TO BE A SUCCESS ALREADY BECAUSE IT HAS DEFUSED CONTROVERSY WITHIN THE MILITARY AND IN CONGRESS AFTER THE POLICY WAS ANNOUNCED IT BASICALLY DROPPED OFF AS AN ISSUE AFTER BEING THE NO 1 BARRACKS TOPIC HE SAID WE HAVE PROCEEDED TO CAPTURE THE BROAD MIDDLE WITH THIS POLICY MR ASPIN WHOM PRESIDENT CLINTON FORCED TO RESIGN LAST WEEK IS EXPECTED TO REMAIN IN OFFICE FOR ABOUT ONE MORE MONTH 9312230118 931223 HEARD ON THE STREET FUND MANAGER HAS BEEN TAKING HIS MEDICINE ON HEALTHCARE STOCKS BUT HE SEES RECOVERY BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HEALTHCARE STOCKS ARE IN THE RECOVERY ROOM SO SAYS ROBERT DOLL JR MANAGER OF NEW YORK'S 750 MILLIONASSETS OPPENHEIMER SPECIAL FUND HE HAS DOUBLED HIS POSITION IN HEALTHCARE STOCKS OVER THE PAST 12 MONTHS TO 20 OF THE FUND'S ASSETS THUS FAR MR DOLL HAS PAID A STEEP PRICE FOR HIS ENTHUSIASM FOR COMPANIES LIKE ABBOTT LABORATORIES MEDTRONIC AND PFIZER ALL OF WHICH ARE TRADING BELOW THEIR YEAREND 1992 CLOSING PRICES HIS FUND IS UP JUST 03 IN 1993 THROUGH DEC 16 COMPARED WITH AN AVERAGE 82 GAIN FOR ALL GROWTH FUNDS TRACKED BY LIPPER ANALYTICAL SERVICES I STARTED ADDING HEALTHCARE STOCKS IN LATE 1992 AND EARLY 1993 SAYS THE 39YEAROLD MR DOLL IF YOU LOOK AT THE SPECIAL FUND'S PERFORMANCE THIS YEAR THAT CLEARLY DIDN'T HELP MR DOLL'S PERFORMANCE HASN'T ALWAYS BEEN SO POOR SINCE TAKING OVER THE OPPENHEIMER SPECIAL FUND IN LATE 1987 HE HAS RETURNED 941 COMPARED WITH AN AVERAGE 759 FOR ALL GROWTH FUNDS MR DOLL CITES FOUR REASONS FOR HIS ENTHUSIASM FOR HEALTHCARE STOCKS FIRST THE AGING OF AMERICANS SECOND THE SUCCESS OF TECHNOLOGY IN PROLONGING LIFE THIRD THE RISING STANDARD OF LIVING WHICH MEANS MORE SPENDING ON HEALTH CARE AND FOURTH HEALTHCARE LEGISLATION TO GET A BILL PASSED WE'LL SEE A BILL THAT'S A LOT LESS ONEROUS THAN THE ONE THE PRESIDENT PROPOSED IN PICKING HEALTHCARE STOCKS THE KEY IS TO FIND COMPANIES THAT CAN GROW RAPIDLY IN A PERIOD WHEN THERE WILL BE ONLY MODEST INCREASES IN THE PRICES CHARGED FOR HEALTH CARE MR DOLL SAYS EVEN WITHOUT THE PENDING HEALTHCARE LEGISLATION HEALTHCARE INFLATION HAS COME DOWN BIG TIME FROM HIGH SINGLE DIGITS TO LOW SINGLE DIGITS HE SAYS MY CONCLUSION IS THAT IS GOING TO BE A WAY OF LIFE YOU HAVE TO FIND COMPANIES EITHER WITH GOOD PRODUCTS OR WITH GOOD UNIT GROWTH HEALTHCARE INFLATION ALONE ISN'T GOING TO DO IT FOR YOU THOUGH MANY HEALTHCARE STOCKS ARE DOWN FOR THE YEAR MR DOLL'S GREATEST ENTHUSIASM IS SAVED FOR US HEALTHCARE AND UNITED HEALTHCARE CORP OF MINNESOTA BOTH OF WHICH HAVE POSTED DECENT GAINS IN 1993 THE TWO HEALTH MAINTENANCE ORGANIZATIONS RANK AMONG MR DOLL'S TOP 10 HOLDINGS THE AVERAGE HMO CAN GROW ITS EARNINGS AT A RATE OF 15 A YEAR OVER THE NEXT FIVE YEARS FIGURES MR DOLL THERE'S GOING TO BE ENROLLMENT GROWTH AS THESE COMPANIES GET BIGGER THEY GET BUYING POWER AND ECONOMIES OF SCALE AND ANY LEGISLATION IS LIKELY TO BENEFIT HMOS MORE THAN OTHER HEALTHCARE COMPANIES MR DOLL LIKES US HEALTHCARE AND UNITED HEALTHCARE BECAUSE THEY HAVE POSTED BETTERTHANEXPECTED EARNINGS THIS YEAR AND HE EXPECTS THAT TO CONTINUE HE ALSO NOTES THAT BOTH COMPANIES ARE RELATIVELY LARGE WHICH GIVES THEM ADDED PURCHASING POWER WHEN DEALING WITH SUPPLIERS MR DOLL BELIEVES MEDICALDEVICE COMPANIES WILL BE AMONG THE FIRMS THAT FEEL THE SQUEEZE FROM THE HMOS NONETHELESS HE THINKS THE FUTURE IS BRIGHT FOR DEVICE COMPANIES THAT HAVE PRODUCTS THAT HELP TO CUT HEALTHCARE COSTS AMONG HIS FAVORITE DEVICE COMPANIES ARE CORDIS AND MEDTRONIC MR DOLL EXPECTS CORDIS WHICH IS TRADING AT 20 TIMES FORECASTED EARNINGS FOR THE YEAR ENDING JUNE 1994 TO HAVE 15 ANNUAL EARNINGS GROWTH OVER THE NEXT FIVE YEARS HE THINKS MEDTRONIC WILL HAVE SLIGHTLY SLOWER ANNUAL GROWTH OF 13 TO 14 OVER THE NEXT FIVE YEARS THE STOCK TRADES AT 21 TIMES ANALYSTS' EXPECTED EARNINGS FOR THE 12 MONTHS ENDING APRIL 1994 IN ADDITION TO HMOS AND DEVICE COMPANIES MR DOLL HAS A HEALTHY POSITION IN PHARMACEUTICAL STOCKS LIKE ABBOTT MERCK PFIZER AND SCHERINGPLOUGH DRUGS THROUGH THICK AND THIN REMAIN A COSTEFFECTIVE SOLUTION TO LOTS OF MEDICAL PROBLEMS HE SAYS THIS INDUSTRY CONTINUES TO INNOVATE AND COME OUT WITH NEW PRODUCTS FASTER THAN MOST OTHER INDUSTRIES IN THE US MR DOLL ESPECIALLY LIKES ABBOTT AND PFIZER WHICH ARE TRADING AT UNDER 16 TIMES NEXT YEAR'S EXPECTED EARNINGS HE NOTES THAT BOTH COMPANIES GET 30 OF THEIR PROFITS FROM FOREIGN SALES HE EXPECTS THAT TO INCREASE AS FOREIGN MARKETS COME OUT OF RECESSION PFIZER HAS GOT A HALF DOZEN NEW DRUGS ACROSS A VARIETY OF TREATMENTS THAT ARE PROPELLING EARNINGS AT A DOUBLEDIGIT RATE SAYS MR DOLL IT'S NOT LIKE THEY'RE A ONEPRODUCT BUSINESS MR DOLL THINKS PFIZER'S EARNINGS WILL GROW AT 14 A YEAR OVER THE NEXT FIVE YEARS WHILE ABBOTT'S GROWTH WILL BE A MORE MODEST 12 BUT ABBOTT'S GROWTH RATE IS VERY CONSISTENT ONE OF THE MOST CONSISTENT ON THE NEW YORK STOCK EXCHANGE HE SAYS MR DOLL ISN'T JUST MANAGER OF THE OPPENHEIMER SPECIAL FUND HE'S ALSO OPPENHEIMER MANAGEMENT'S DIRECTOR OF EQUITY INVESTMENTS ONE OF HIS JOBS IS TO ENCOURAGE MANAGERS TO BUY INTO SECTORS OF THE MARKET THAT SEEM ATTRACTIVE HAS HE PERSUADED HIS COLLEAGUES OF THE MERITS OF HEALTHCARE STOCKS NOT COMPLETELY THAT'S FOR SURE SAYS MR DOLL 9312230117 931223 MONEYFUND YIELDS SUBJECT TO TAX ENDED FLAT IN LATEST WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS WERE GENERALLY FLAT WHILE ASSETS DECREASED IN THE WEEK ENDED TUESDAY IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS ROSE A BIT TO 275 FROM 272 ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS INCHED UP TO 271 FROM 269 WHILE THE 30DAY SIMPLE YIELD REMAINED AT 269 THE 30DAY COMPOUND YIELD CREPT UP TO 273 FROM 272 ASSETS OF 635 TAXABLE FUNDS DECREASED BY 428 BILLION TO 48840 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR 199 BILLION OF THE OUTFLOW WHILE INDIVIDUAL INVESTORS TOOK OUT 229 BILLION WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE CHANGES IN TAXABLE YIELDS AND ASSETS TO NORMAL SEASONAL FACTORS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS LENGTHENED BY ONE DAY TO 60 DAYS THE AVERAGE TAXEXEMPT SEVENDAY COMPOUND YIELD ROSE TO 187 FROM 169 IN THE LATEST WEEK THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 292 FOR SOMEONE PAYING 36 IN TAXES AND TO 310 FOR THOSE WHO PAY 396 ASSETS OF 338 TAXEXEMPT FUNDS DECREASED BY 7632 MILLION TO 10891 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY SHORTENED BY ONE DAY TO 63 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9312230116 931223 INTERNATIONAL CASTRO'S DAUGHTER RECEIVES US ASYLUM IN ESPECIALLY EMBARRASSING DEFECTION BY JOSE DE CORDOBA STAFF REPORTER OF THE WALL STREET JOURNAL FIDEL CASTRO'S REBEL DAUGHTER ESCAPED FROM CUBA AND WAS GRANTED POLITICAL ASYLUM IN THE US IN AN ESPECIALLY EMBARRASSING DEFECTION ALINA FERNANDEZ REVUELTA MR CASTRO'S 37YEAROLD DAUGHTER WAS ABLE TO ESCAPE FROM THE ISLAND TO SPAIN MONDAY THROUGH AN OPERATION CLOAKED IN SECRECY SHE REQUESTED POLITICAL ASYLUM THE SAME DAY AT THE US EMBASSY IN MADRID ASYLUM WAS GRANTED AND SHE FLEW TO ATLANTA TUESDAY THE EVENT PROVIDES ONE MORE SAD ILLUSTRATION OF THE LACK OF FREEDOM AND LACK OF HOPE THAT PERVADES CUBA TODAY A STATE DEPARTMENT SPOKESWOMAN SAID IN HAVANA FOREIGN MINISTER ROBERTO ROBAINA SAID HE DIDN'T SEE MS FERNANDEZ REVUELTA'S FLIGHT AS AN EXCEPTIONAL ONE I THINK THAT AT TIMES LIKE THIS MANY PEOPLE HAVE DEFECTED BECAUSE THE SITUATION OF THE COUNTRY IS DIFFICULT AND THESE ARE TIMES IN WHICH PEOPLE PROVE THEMSELVES HE SAID WHEN ASKED WHAT HE THOUGHT MR CASTRO'S REACTION WOULD BE MR ROBAINA SAID THAT CUBAN OFFICIALS HAD BECOME USED TO DIFFICULT MOMENTS IN THESE TIMES WE HAVE BECOME USED TO HARDER DECISIONS THAN THIS ONE HE SAID MS FERNANDEZ REVUELTA IS MR CASTRO'S DAUGHTER BY NATI REVUELTA WHO WAS THEN THE SOCIALLY PROMINENT WIFE OF A DOCTOR IN PREREVOLUTIONARY CUBA MS REVUELTA REMAINS IN CUBA IN PREVIOUS INTERVIEWS WITH FOREIGN REPORTERS MS FERNANDEZ REVUELTA A FORMER MODEL WHO LEFT A TEENAGE DAUGHTER IN CUBA HAD BEEN OUTSPOKEN IN HER CRITICISM OF MR CASTRO'S REGIME IN A 1991 INTERVIEW PUBLISHED IN ANDRES OPPENHEIMER'S BOOK CASTRO'S FINAL HOUR MS FERNANDEZ REVUELTA CALLED HER FATHER A TYRANT WHEN PEOPLE TELL ME HE'S A DICTATOR I TELL THEM THAT'S NOT THE RIGHT WORD STRICTLY SPEAKING FIDEL IS A TYRANT SHE IS QUOTED AS SAYING I HAVE LOOKED UP THE TWO WORDS IN THE DICTIONARY A DICTATOR IS A PERSON WHO IS GRANTED ABSOLUTE POWERS TO FACE A NATIONAL EMERGENCY ON A TEMPORARY BASIS A TYRANT IS AN ABSOLUTE RULER UNRESTRAINED BY LAW WHO USURPS PEOPLE'S RIGHTS IN ANOTHER INTERVIEW MS FERNANDEZ REVUELTA SAID MR CASTRO SHOULD BE GIVEN A MEDAL FOR DESTROYING THE COUNTRY IN 32 YEARS SPEAKING ABOUT THE COUNTRY'S SOCIALIST SYSTEM MS FERNANDEZ REVUELTA TOLD MR OPPENHEIMER THAT I USED TO BELIEVE IN IT WHEN I WAS VERY LITTLE BUT NOW CUBAN SOCIALISM IS A DEADEND STREET IN MY MIND I ASSOCIATE IT WITH ECONOMIC COLLAPSE AND FOOD SHORTAGES MS FERNANDEZ REVUELTA HAS SAID SHE HAS WANTED TO LEAVE CUBA FOR YEARS BUT THAT MR CASTRO HAS PERSONALLY PREVENTED HER FROM DOING SO HER INABILITY TO LEAVE CUBA DESTROYED HER THIRD MARRIAGE TO A MEXICAN BUSINESSMAN WHO LEFT THE ISLAND IN 1986 AND WAITED IN VAIN FOR HER TO FOLLOW HIM FOR A YEAR SHE TOLD ESQUIRE MAGAZINE IN 1992 MR CASTRO'S OLDEST SON BY HIS FIRST MARRIAGE FIDELITO FELL INTO DISFAVOR TWO YEARS AGO AND WAS REMOVED AS HEAD OF THE COUNTRY'S ATOMIC ENERGY AGENCY HE AND THE REST OF MR CASTRO'S OFFSPRING REMAIN IN CUBA THOUGH MR CASTRO IS SAID TO HAVE FIVE OTHER SONS BY DALIA SOTO DEL VALLE HIS LONGTIME WIFE OR MISTRESS NO ONE IS SURE WHICH THE THREE OLDEST SONS BEAR VARIATIONS OF THE NAME ALEJANDRO SPANISH FOR ALEXANDER MR CASTRO'S NOM DE GUERRE DURING THE INSURRECTION AGAINST THE LATE DICTATOR FULGENCIO BATISTA 9312230115 931223 LETTERS TO THE EDITOR IS IT A WONDERFUL LIFE' FOR POOR OLD POTTER IN YOUR DEC 17 EDITORIAL WHY WE HATE IT'S A WONDERFUL LIFE' YOU ASKED FOR A MORATORIUM ON TV SHOWING OF THE MOVIE DURING THE CHRISTMAS SEASON I'M REALLY NOT SURE WHY YOU DISLIKE THE MOVIE SO MUCH THOUGH I AGREE THAT WHERE BATHOS IS CONCERNED DIRECTOR FRANK CAPRA PILED IT ON PRETTY THICK CAPRACORN IS A GOOD DESCRIPTION OF WONDERFUL LIFE AND IT'S HARD TO TAKE YEAR AFTER YEAR BUT I SUSPECT YOUR OPINION IS REALLY BASED ON THE HARSH PORTRAYAL OF THE MORTGAGE BANKER POTTER PLAYED BY LIONEL BARRYMORE AS A GRASPING OLD SCROOGE HERE'S A MAN WHO'S JUST TRYING TO RUN A LEGITIMATE BUSINESS BORROWING AT 1 AND LENDING AT 2 MAKING MONEY THE GOOD OLDFASHIONED WAY AND HE'S MADE TO SEEM EVIL MEANWHILE THAT FOOL GEORGE BAILEY PLAYED BY JIMMY STEWART IS BARELY MAKING IT INTO THE BLACK GIVING PEOPLE A CHANCE THEY AREN'T QUALIFIED FOR AND PROBABLY DON'T DESERVE WHY IT MAKES THE BLOOD BOIL I'M SURE THAT IF THE CORPORATE HEADS OF THE TV STATIONS THAT BROADCAST WONDERFUL LIFE REALIZED THE FILM'S TRUE ANTIBUSINESS BIAS IT WOULD NEVER BE SHOWN AGAIN SHOULDN'T THEY INSTEAD BE URGED TO MAKE WALL STREET OR LLOYDS OF LONDON THE ANNUAL HOLIDAY MOVIE COME ON GUYS AS ONE WHO CHEERS FOR SCROOGE THROUGHOUT A CHRISTMAS CAROL AND WHO THINKS THE ENDING IS A TRAGEDY I STILL CAN'T GO ALONG WITH PUTTING GEORGE BAILEY ON THE SHELF I NEED MY WONDERFUL LIFE FIX SEVERAL TIMES PER HOLIDAY SEASON JUST TO REMEMBER THAT A LITTLE SAPPY SENTIMENT STILL STIRS WITHIN MY JADED HEART AND AS FOR BRINGING CASABLANCA INTO THE DISCUSSIONTALK ABOUT COMPARING APPLES AND ORANGES IN AN ERA WHEN WAYNE'S WORLD II IS CONSIDERED DE RIGUEUR I THINK WE BETTER KEEP ROLLING CAPRA AND BOGART FILMS FULL TILT MERRY CHRISTMAS ANYWAY YOU'RE STILL CURMUDGEONS AFTER MY OWN HEART 9312230114 931223 BUSINESS BRIEFS ENSERCH CORP SOLD THE PRINCIPAL OPERATING ASSETS OF EBASCO SERVICES INC TO RAYTHEON CO LEXINGTON MASS FOR 210 MILLION UNDER THE AGREEMENT ENSERCH RETAINS THE BULK OF EBASCO'S ACCOUNTS RECEIVABLE VALUED AT 135 MILLION ENSERCH ALSO SOLD ITS 49 INTEREST IN DORSCH CONSULT GMBH IN GERMANY FOR 95 MILLION THE BUYER WASN'T DISCLOSED CITIZENS UTILITIES CO COMPLETED THE ACQUISITION OF NATURAL GAS CO OF LOUISIANA FOR ABOUT 105 MILLION IN STOCK BOK FINANCIAL CORP'S BANK OF OKLAHOMA UNIT AGREED TO ACQUIRE PLAZA NATIONAL BANK OF BARTLESVILLE WHOSE THREE BRANCHES WOULD GIVE BANK OF OKLAHOMA A TOTAL OF 51 LOCATIONS TERMS WEREN'T DISCLOSED FIRST BRANDS CORP ACQUIRED FABRICANTE DE PRODUCTOS PLASTICOS SA A DISTRIBUTOR OF CONSUMER PRODUCTS IN MEXICO TERMS WEREN'T DISCLOSED 9312230113 931223 TECHNOLOGY COMPUSERVE PLANS FORUM TO FIND MISSING CHILDREN KANSAS CITY MO COMPUSERVE INC A COMPUTERBASED INFORMATION PROVIDER SAID IT WILL SET UP A PUBLIC ONLINE FORUM TO HELP FIND MISSING CHILDREN THE UNIT OF H&R BLOCK INC BASED HERE SAID THE INTERACTIVE DISCUSSION GROUP CALLED THE MISSING CHILDREN FORUM WILL BE FREELY AVAILABLE TO BOTH CUSTOMERS AND COMPETING ONLINE SERVICES USERS EQUIPPED WITH A COMPUTER AND MODEM CAN GET ACCESS TO DESCRIPTIONS AND PHOTOGRAPHS OF MISSING CHILDREN AND SHARE INFORMATION WITH LAW ENFORCEMENT OFFICIALS SINCE 1990 COMPUSERVE HAS PROVIDED THE NATIONAL CENTER FOR MISSING AND EXPLOITED CHILDREN A NONPROFIT ORGANIZATION THAT ASSISTS AGENCIES NATIONWIDE IN FINDING MISSING CHILDREN WITH A FORUM ON ITS NETWORK TO DISTRIBUTE INFORMATION TO PROFESSIONALS NOW COMPUSERVE WILL OPEN THAT FORUM TO REGULAR SUBSCRIBERS THAT WAY SAYS BEN ERMINI THE CENTER'S DIRECTOR OF CASE MANAGEMENT WE CAN EXPAND OUR DISTRIBUTION CHANNELS WHAT REALLY GOT THIS ROLLING ADDED MR ERMINI WAS THE POLLY KLAAS INCIDENT THE 12YEAROLD FROM PETALUMA CALIF WAS ABDUCTED OCT 1 THE CASE DREW NATIONAL ATTENTION AND HER PICTURE WAS WIDELY DISTRIBUTED SHE WAS FOUND DEAD TWO MONTHS LATER 9312230112 931223 CORPORATE FOCUS GE MAY BE PULLING AHEAD OF GM IN LOCOMOTIVE RACE COMPANY IS SAID TO GET BIG CSX ORDER FOR MOREPOWERFUL AC MODELS BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE RACE BETWEEN TWO US INDUSTRIAL BEHEMOTHS TO EQUIP THE WORLD'S RAILROADS WITH SUPER POWERFUL HIGHTECH LOCOMOTIVES IS TIGHTENING INDUSTRY EXECUTIVES SAY CSX CORP THE NATION'S MOST EXTENSIVE RAILROAD IS CLOSE TO ANNOUNCING AN ORDER FOR NEARLY 300 RAILROAD LOCOMOTIVES USING NEW AC OR ALTERNATING CURRENT DIESELELECTRIC TECHNOLOGY FROM GENERAL ELECTRIC CO THE CSX PURCHASE WOULD HELP GE CATCH UP WITH SOME INDUSTRY EXECUTIVES SAY OVERTAKE ITS RIVAL GENERAL MOTORS CORP IN THE RACE TO SERVE A MULTIBILLION DOLLAR GLOBAL MARKET THE 300 CSX LOCOMOTIVES COST NEARLY 2 MILLION EACH INDICATING THE VALUE OF THE ORDER WOULD APPROACH 600 MILLION A MAJOR PORTION OF THE LOCOMOTIVES WILL TAKE ADVANTAGE OF THE AC TECHNOLOGY BY USING 6000HORSEPOWER ENGINES BURLINGTON NORTHERN INC IS BUYING 350 GM LOCOMOTIVES BUT THEY HAVE ONLY 4000HORSEPOWER ENGINES SPOKESMEN FOR THE CSX'S RAILROAD UNIT BASED IN JACKSONVILLE FLA AND FOR GE'S LOCOMOTIVE UNIT IN ERIE PA DECLINED TO COMMENT INDUSTRY OFFICIALS EXPECT HOWEVER THAT THE ORDER MAY BE ANNOUNCED AS EARLY AS NEXT WEEK RAILROADS IN A RACE TO OBTAIN LOCOMOTIVES THAT CAN HAUL HEAVIER LOADS AT HIGHER SPEEDS HAVE BEEN SEEKING AC LOCOMOTIVES THESE UNITS CAN BE MORE POWERFUL THAN THE LOCOMOTIVES NOW IN SERVICE WHICH USE DC OR DIRECT CURRENT THE CSX ORDER WOULD REPRESENT A BREAKTHROUGH IN SEVERAL RESPECTS GM'S LOCOMOTIVE GROUP HAS THE LEAD IN AC TECHNOLOGY AND IN MARCH IT WON THE FIRST US ORDER FOR AC LOCOMOTIVES FROM BURLINGTON NORTHERN RAILROAD THE 350UNIT ORDER WAS THE BIGGEST LOCOMOTIVE ORDER IN HISTORY ALTHOUGH GE MAY SURGE AHEAD ON THE CSX ORDER THE OUTCOME OF THE TECHNOLOGY RACE IS FAR FROM CERTAIN IN AN INTERVIEW JOHN JERRELL HEAD OF GM'S LOCOMOTIVE GROUP SAID THAT GE IS A TOUGH COMPETITOR BUT THEY STILL HAVEN'T PULLED MANY TRAINS WITH AN AC LOCOMOTIVE MR JERRELL NOTED THAT TEST MODELS OF GM'S AC LOCOMOTIVES WERE TRIED OUT ON BURLINGTON NORTHERN TRAINS MORE THAN A YEAR AGO AND THE FIRST PRODUCTION UNITS OF THE GM AC LOCOMOTIVE ARE BEING DELIVERED TO BURLINGTON NORTHERN THIS MONTH IN JANUARY THE RAILROAD PLANS A GALA UNVEILING OF THE AC UNITS AT THE RAILROAD'S CORPORATE HEADQUARTERS IN FORTH WORTH TEXAS THERE'S NO DOUBT GE WAS SLOW IN DEVELOPING AC LOCOMOTIVES A REPORTER VISITING GE'S LOCOMOTIVE PLANT IN ERIE LAST SUMMER WAS SHOWN A TEST UNIT OF AN AC LOCOMOTIVE BUT THE ELECTRONIC BOARDS CRITICAL TO THE LOCOMOTIVE'S AC OPERATION STILL WEREN'T READY THE TEST UNIT WAS USING BOARDS BORROWED FROM URBAN TRANSIT CARS WHICH GE ALSO MAKES BUT WHICH AREN'T SUITABLE FOR A RAILROAD LOCOMOTIVE ASKED LAST SUMMER WHY GE HAD BEEN SLOW ON AC TECHNOLOGY GE CHAIRMAN JOHN WELCH REPLIED WE DIDN'T THINK THE RAILROADS WOULD WANT TO PAY THE PREMIUM INVOLVED IN ACQUIRING AC UNITS A TOPOFTHELINE DC LOCOMOTIVE COSTS ABOUT 15 MILLION COMPARED WITH THE NEARLY 2 MILLION FOR AN AC UNIT FINAL AGREEMENT FOR THE CSX PURCHASE OF GE LOCOMOTIVES WAS HAMMERED OUT BY TOP EXECUTIVES OF THE TWO COMPANIES INDUSTRY EXECUTIVES SAID THIS WAS A JACK WELCHJOHN SNOW DEAL ONE EXECUTIVE SAID MR SNOW IS CHAIRMAN OF CSX PARENT OF THE RAILROAD WHICH IS AN AMALGAM OF THE CHESAPEAKE & OHIO THE SOUTHERN AND SEVERAL OTHER ROADS IN DIESELELECTRIC LOCOMOTIVES A DIESEL ENGINE DRIVES A GENERATOR WHICH PROVIDES ELECTRICITY TO TRACTION MOTORS ON THE WHEELS ONE OF THE DISADVANTAGES OF DC TRACTION MOTORS IS THAT THEY REQUIRE BIG ROTATING BRUSHES TO MAKE ELECTRICAL CONTACTS THE BRUSHES CAUSE ELECTRIC FLASHOVERS WHICH ARE A LEADING CAUSE OF MOTOR FAILURES THE BRUSHES ALSO HAVE TO BE REPLACED SO OFTEN THAT ONE RAILROAD SPENDS 600000 A YEAR TO DO THIS JOB ON ITS FLEET SWITCHING TO AC LOCOMOTIVES WHICH USE ELECTRONIC COMPONENTS TO REGULATE THE MOTORS ELIMINATES THE BRUSHES PROVIDING MAJOR MAINTENANCE SAVINGS ELIMINATING THE BRUSHES ALSO LEAVES MORE ROOM FOR BIGGER TRACTION MOTORS WHICH CAN THEN EMPLOY MORE POWER FROM THE DIESEL ENGINE THAT'S WHERE GE'S MOVE TO A 6000HORSEPOWER DIESEL ENGINE COMES IN THE RAILROADS STILL HAVE LOTS OF OLD 3000HORSEPOWER UNITS AND MUST OFTEN USE AS MANY AS SIX OF THEM TO PULL HEAVY TRAINS HAULING COAL OR OTHER COMMODITIES WITH THE 6000HORSEPOWER GE LOCOMOTIVES THE RAILROADS IN SOME APPLICATIONS CAN USE THREE OF THE NEW UNITS TO REPLACE SIX OF THE 3000HORSEPOWER LOCOMOTIVES THAT PROVIDES EVEN MORE SAVINGS THE MORE POWERFUL LOCOMOTIVES ALSO CAN PULL TRAINS FASTER IN SOME APPLICATIONS CONRAIL FOR EXAMPLE HAS ORDERED FOUR AC LOCOMOTIVES FROM GM AND FOUR FROM GE FOR TEST PURPOSES BUT ONE CONRAIL EXECUTIVE SAYS THE RAILROAD HAS BEEN WAITING FOR 6000HORSEPOWER ENGINES TO BECOME AVAILABLE BEFORE PLACING A BIG ORDER FOR AC LOCOMOTIVES WE WILL NEED THE HIGHER HORSEPOWER TO MAKE OUR FASTER SCHEDULES THE EXECUTIVE EXPLAINED HOW GE IS OBTAINING THE HIGHER HORSEPOWER IN ITS ENGINES ISN'T CLEAR INDUSTRY EXECUTIVES SAY GE MAY BE LICENSING THE TECHNOLOGY FROM A EUROPEAN COMPANY SOME SCANDINAVIAN COMPANIES FOR EXAMPLE HAVE BEEN PRODUCING VERY HIGH HORSEPOWER DIESEL ENGINES FOR SHIPS GE DECLINED TO COMMENT GOING OVERSEAS FOR LOCOMOTIVE TECHNOLOGY WOULDN'T BE NEW GM HAS GONE TO SIEMENS AG THE BIG GERMAN ELECTRONICS COMPANY TO OBTAIN ITS AC TECHNOLOGY WHILE GM IS OFFERING ENGINES WITH UP TO 5000 HORSEPOWER INDUSTRY EXECUTIVES BELIEVE THE COMPANY WOULD HAVE TO DEVELOP A BRANDNEW ENGINE TO REACH 6000 HORSEPOWER THE EXECUTIVES DOUBT GM'S LOCOMOTIVE UNIT HAS THE FUNDS TO DO THAT THE NEXT BIG POTENTIAL CUSTOMER FOR AC LOCOMOTIVES INDUSTRY EXECUTIVES SAY IS THE UNION PACIFIC CORP WHICH HAS ALREADY ORDERED TWO GE PROTOTYPES FOR TESTS YESTERDAY A SPOKESMAN FOR THE RAILROAD AT ITS OMAHA NEB HEADQUARTERS SAID THE RAILROAD IS VERY CLOSE TO PLACING A MAJOR ORDER HE ADDED WE ARE TALKING VERY INTENSELY TO BOTH GE AND GM AND WHO WILL GET THE ORDER IS UNCERTAIN 9312230111 931223 TECHNOLOGY ELI LILLY UNIT CLEARED BY FDA TO RESUME SHIPPING DEFIBRILLATOR INDIANAPOLIS ELI LILLY & CO SAID THE FOOD AND DRUG ADMINISTRATION GRANTED ITS PHYSIOCONTROL CORP UNIT PERMISSION TO RESUME SHIPPING THE COMPANY'S LIFEPAK 9 BRAND OF DEFIBRILLATORS IN MAY 1992 AFTER DISCOVERING MANUFACTURING DEFICIENCIES AND INADEQUATE PROCEDURES FOR REPORTING TO THE GOVERNMENT FDA INSPECTORS ORDERED PHYSIOCONTROLS' REDMOND WASH PLANT CLOSED THE SITE IS THE UNIT'S SOLE PRODUCTION FACILITY PHYSIOCONTROL IS THE NATION'S BIGGEST MAKER OF DEFIBRILLATORS USED BY EMERGENCY MEDICAL PERSONNEL ITS PRODUCTS AREN'T RELATED TO THE IMPLANTABLE DEFIBRILLATORS MADE BY ANOTHER LILLY UNIT LAST MAY PHYSIOCONTROL GOT FDA CLEARANCE TO BEGIN SHIPPING ITS LIFEPAK 10 MODEL LILLY SAID AT THE TIME THAT IT EXPECTED IT WOULD RECEIVE PERMISSION TO BEGIN SELLING THE LIFEPAK 9 AND LIFEPAK 300 MODELS THIS YEAR PRODUCTION OF THOSE MODELS BEGAN IN OCTOBER ALLOWING THE COMPANY TO BUILD UP INVENTORY TO HELP CLEAR WHAT A SPOKESMAN CHARACTERIZED AS A SIZABLE BACKLOG OF ORDERS PHYSIOCONTROL HAS BEEN ABLE TO EXPORT ALL THREE PRODUCTS SINCE EARLY THIS YEAR THE LIFEPAK 10 AND 9 ARE THE COMPANY'S BIGGESTSELLING MODELS WITH THE ASYETUNCLEARED 300 MODEL A MUCH LESS SIGNIFICANT PRODUCT THE COMPANY DOESN'T PROVIDE SALES FIGURES BUT PHYSIOCONTROL'S ANNUAL REVENUES PRIOR TO THE SHUTDOWN WERE ABOUT 150 MILLION THE COMPANY SPOKESMAN SAID THAT THE APPROVAL OF THE MODEL 9 WILL GET US BACK VERY CLOSE TO NORMAL LEVELS ONCE AGAIN 9312230110 931223 CLINTON ENTERS DEBATE OVER HOW COMPANIES RECKON STOCK OPTIONS WASHINGTON PRESIDENT CLINTON HAS WADED INTO THE DEBATE OVER THE VALUE OF STOCK OPTIONS AND WHETHER COMPANIES SHOULD DEDUCT THE VALUE FROM THEIR EARNINGS IN A NOV 18 LETTER MR CLINTON APPEARS TO JOIN THE LARGE CAMP THAT IS OPPOSED TO REQUIRING A CHARGE TO EARNINGS FOR STOCK OPTIONS SUCH A CHARGE IS BEING CONSIDERED BY THE FINANCIAL ACCOUNTING STANDARDS BOARD AND WAS PROPOSED IN LEGISLATION SPONSORED BY SEN CARL LEVIN D MICH WRITING TO MR LEVIN THE PRESIDENT SAID IT WILL BE PARTICULARLY IMPORTANT TO UNDERSTAND THE IMPACT OF THE PROPOSAL ON GROWTH COMPANIES WHICH TEND TO HAVE HIGHLY VOLATILE STOCK PRICES IT WOULD BE UNFORTUNATE MR CLINTON CONTINUED IF FASB'S PROPOSAL INADVERTENTLY UNDERMINED THE COMPETITIVENESS OF SOME OF AMERICA'S MOST PROMISING HIGHTECH COMPANIES IN ADDITION TO HIGHTECH COMPANIES THE PROPOSED CHARGE FOR STOCK OPTIONS IS OPPOSED BY SUCH GROUPS AS THE COUNCIL OF INSTITUTIONAL INVESTORS AND THE BUSINESS ROUNDTABLE THE FASB WHOSE ACTION MUST BE APPROVED BY THE SECURITIES AND EXCHANGE COMMISSION IS TO HOLD PUBLIC HEARINGS ON THE PROPOSED CHARGE EARLY NEXT YEAR 9312230109 931223 JOB ADVERTISING HELD STEADY IN NOVEMBER HIRING IS SEEN RISING NEW YORK HELPWANTED ADVERTISING REMAINED FLAT IN NOVEMBER ALTHOUGH HIRING IS EXPECTED TO PICK UP SPEED IN 1994 ACCORDING TO THE CONFERENCE BOARD THE BOARD'S HELP WANTED INDEX AN INDICATOR OF HIRING PLANS REGISTERED 106 IN NOVEMBER UNCHANGED FROM OCTOBER DESPITE THE LULL WE MOVE INTO 1994 WITH MUCH MORE ECONOMIC MOMENTUM THAN A YEAR AGO SAID KEN GOLDSTEIN AN ECONOMIST AT THE CONFERENCE BOARD ALTHOUGH CORPORATE LAYOFFS CONTINUE THE PERCEPTION IS NO LONGER ONE OF A JOBLESS RECOVERY HE ADDED IN THE PAST THREE MONTHS HELPWANTED ADVERTISING IMPROVED IN SIX OF THE COUNTRY'S NINE REGIONS THE MOUNTAIN REGION WHICH INCLUDES DENVER PHOENIX AND SALT LAKE CITY SHOWED THE SHARPEST GAIN RISING 17 WHILE THE WEST NORTH CENTRAL REGION WHICH INCLUDES KANSAS CITY MO MINNEAPOLIS OMAHA NEB AND ST LOUIS ROSE 45 THE WEST SOUTH CENTRAL INCLUDING DALLAS HOUSTON AND NEW ORLEANS WAS UP 4 REGIONALLY THE MOST PROMISING DEVELOPMENT IS THE RISE OF ADVERTISING OVER THE LAST THREE MONTHS IN THE PACIFIC REGION THE BOARD SAID UNTIL RECENTLY THIS REGION WAS MIRED IN DECLINING LABOR MARKET ACTIVITY THE INDEX FOR THE PACIFIC REGION WHICH INCLUDES LOS ANGELES SACRAMENTO SAN DIEGO SAN FRANCISCO AND SEATTLE ROSE SIX POINTS TO 138 THE CONFERENCE BOARD A NONPROFIT BUSINESS RESEARCH GROUP SURVEYS HELPWANTED ADVERTISING VOLUME IN 51 MAJOR NEWSPAPERS EVERY MONTH THE MEASURE IS CONSIDERED A BAROMETER OF CHANGE IN THE SUPPLY OF JOBS BECAUSE ADVERTISING VOLUME IS SENSITIVE TO LABOR MARKET CONDITIONS 9312230108 931223 INTERNATIONAL GAIDAR PRESCRIBES TOUGH MEDICINE FOR RUSSIA EVEN AS US WAVERS IN WAKE OF UPSET ELECTIONS VICE PREMIER MAINTAINS FAITH IN ECONOMIC PLAN BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIAN VICE PREMIER YEGOR GAIDAR JUST HOURS AFTER WINNING A VOTE OF CONFIDENCE FROM PRESIDENT BORIS YELTSIN CONTEMPLATES THE NEW CONVENTIONAL WISDOM EMANATING FROM WASHINGTON'S FOREIGN POLICY CIRCLES THE NEW INSIDETHEBELTWAY WISDOM GOES SOMETHING LIKE THIS RUSSIA CAN'T BEAR RAPID ECONOMIC REFORM THE WEST HAS BEEN PUSHING RUSSIA TOO HARD ALONG THAT COURSE THIS HELPS EXPLAIN WHY RUSSIA'S REFORMERS FARED SO BADLY IN THE ELECTIONS DEC 12 I THINK THE WEST OVERESTIMATES ITS ROLE IN RUSSIAN POLITICS MR GAIDAR SAYS WITH A DISMISSIVE SHAKE OF THE HEAD WHAT HAPPENED WAS A PURELY RUSSIAN PHENOMENON THERE'S NO CONNECTION BETWEEN RUSSIA'S ELECTION AND US POLICY AND HE IS TROUBLED BY THE NEW WASHINGTON POLICY OF GOING SLOWER ON REFORM THE RUSSIAN VOTE WHICH SAW HUGE GAINS BY FORCES HOSTILE TO REFORM PROVOKED DEEP SOULSEARCHING AMONG WESTERN POLICYMAKERS ESPECIALLY IN THE US THE CLINTON ADMINISTRATION HAS BEEN CRITICIZED FOR ADVOCATING RAPID ECONOMIC REFORM AND FOR ALLYING ITSELF TOO CLOSELY WITH PRESIDENT BORIS YELTSIN FOR EXAMPLE DMITRI SIMES A RUSSIA EXPERT AT THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE CALLS THE ELECTION A TREMENDOUS SETBACK FOR THE CLINTON ADMINISTRATION AND SAYS WASHINGTON'S INFLUENCE ON EVENTS WAS DESTRUCTIVE BUT THE NEW THINKING IN WASHINGTON HAS OVERTONES OF CAUTION THAT WORRY SOME OF RUSSIA'S LEADING ECONOMIC REFORMERS AND ADVISERS LIKE ANY CONVENTIONAL WISDOM THE NEW ONE IS SUSPECT ESPECIALLY BECAUSE IT HAS TAKEN ROOT ALMOST OVERNIGHT THE ELECTION SUCCESS OF THE COMMUNISTS AND OF VLADIMIR ZHIRINOVSKY'S ULTRANATIONALIST PARTY CERTAINLY HAS CHANGED RUSSIA'S POLITICAL LANDSCAPE BUT REFORMS WERE ABLE TO STUMBLE FORWARD DESPITE THE PREVIOUS HOSTILE PARLIAMENT AND CAN BE EXPECTED TO CONTINUE TO DO SO CALLS FOR A SLOWER APPROACH TO REFORM ARE COMPLETELY MISCONCEIVED SAYS ANDERS ASLUND A SWEDISH ECONOMIST WHO ADVISES RUSSIA'S ECONOMIC REFORMERS I CAN UNDERSTAND A VIEW LIKE THAT COMING FROM RUSSIANS WHO DON'T FULLY UNDERSTAND ECONOMICS BUT COMING FROM THE WEST IT'S ATROCIOUS INDEED SOME WORRY THAT THE CLINTON ADMINISTRATION'S APPARENT DECISION TO ADVOCATE A SLOWER COURSE OF REFORM RISKS PLAYING INTO THE HANDS OF ENEMIES OF RUSSIAN LIBERALIZATION IF THE US BACKS A MORE CENTRIST POSITION IT UNDERCUTS THE REFORMERS IN RUSSIA THAT WE SHOULD BE SUPPORTING CAUTIONS RICHARD ERICSON HEAD OF COLUMBIA UNIVERSITY'S HARRIMAN INSTITUTE THIS KIND OF PANICKY OVERREACTION CAN BECOME A SELFFULFILLING PROPHECY BY GIVING AMMUNITION TO OPPONENTS OF REFORM PRESIDENT YELTSIN TOLD A NEWS CONFERENCE IN MOSCOW YESTERDAY THAT RUSSIA WOULD STICK TO ITS BASIC POLICIES AND THAT MR GAIDAR THE ARCHITECT OF RUSSIA'S REFORMS WOULD REMAIN IN THE GOVERNMENT HE ALSO SAID RUSSIA WILL PAY MORE ATTENTION TO PROVIDING SOCIAL GUARANTEES FOR RUSSIA'S POOR BUT NOT AT THE EXPENSE OF LETTING INFLATION GET OUT OF CONTROL MR GAIDAR IN AN INTERVIEW REITERATED THAT RUSSIA WILL STAY THE COURSE ANY FLUCTUATIONS IN ECONOMIC POLICY NOW WOULD BE EXTREMELY DANGEROUS HE SAID WE HAVE NO CHOICE BUT TO FOLLOW A TOUGH ANTIINFLATIONARY POLICY THE DEBATE OVER THE PACE OF REFORM ISN'T NEW OF COURSE BUT IT IS A DEBATE THAT HAS TAKEN ON NEW URGENCY SINCE THE ELECTION AND IT IS A DEBATE THAT SEEMS FULL OF HALFBAKED IDEAS THE FIRST MISCONCEPTION SHARED BY MANY RUSSIAN AND WESTERN PUNDITS IS THAT SHOCK THERAPY FARREACHING AND RAPID LIBERALIZATION WITH STRICT MONETARY CONTROL WAS TRIED IN RUSSIA BUT FAILED IN FACT THE POLICY WAS JETTISONED WITHIN THE FIRST FEW WEEKS OF THE INTRODUCTION OF MR GAIDAR'S REFORMS IN EARLY 1992 IN RUSSIA THERE HAS NEVER BEEN SHOCK THERAPY IN THE TRUE SENSE OF THE WORD MR GAIDAR SAYS INDEED WITH INFLATION STILL AT 15 A MONTH IT'S DIFFICULT TO ARGUE THAT RUSSIA'S MONETARY POLICY HAS BEEN OVERLY STRICT WE SUFFER NOT FROM EXCESSIVELY TOUGH FISCAL POLICY BUT FROM COMPROMISES AND INCONSISTENCY THE MISPERCEPTION REPRESENTS A POTENTIAL HANDICAP FOR RUSSIA'S REFORMERS HOWEVER SINCE MUCH OF THE PUBLIC ALREADY BELIEVES THAT RUSSIA HAS PURSUED SHOCK THERAPY FOR THE PAST TWO YEARS IT IS UNLIKELY THAT THE GOVERNMENT CAN NOW ACCELERATE REFORM RATHER THE HOPE IS TO KEEP REFORMS MOVING AT THEIR CURRENT UNEVEN PACE ANOTHER SOURCE OF CONFUSION IS THE FACILE ARGUMENT THAT A SLOWER PACE OF REFORM MEANS LESS PAIN IT'S IMPOSSIBLE TO PROVE THE POINT BUT ANECDOTAL EVIDENCE EXISTS TO SUGGEST THAT SLOW REFORM MERELY PROLONGS THE DISCOMFORT OF THE TRANSITION PERIOD FROM SOCIALISM TO A MARKET ECONOMY ANOTHER OFTENCITED EXAMPLE AMONG RUSSIAN REFORMERS IS UKRAINE WHICH HAS PURSUED A FAR MORE GRADUAL APPROACH TO REFORM THAN RUSSIA UKRAINE HAS BECOME A DANGEROUSLY UNSTABLE ECONOMIC BASKETCASE RAVAGED BY HYPERINFLATION AND A NEARLY WORTHLESS LOCAL CURRENCY THERE IS SIMPLY NO CONNECTION BETWEEN THE PACE OF REFORM AND THE DEGREE OF PAIN SAYS CHARLES BLITZER THE WORLD BANK'S CHIEF ECONOMIST IN MOSCOW THE ARGUMENT IS BASICALLY NONSENSE MR BLITZER IS SENSITIVE TO CRITICISM FROM MR GORE AND OTHERS THAT THE WORLD BANK HAS IMPOSED INTOLERABLY HARSH CONDITIONS ON RUSSIA THERE'S NO WAY TO STABILIZE AN ECONOMY WITHOUT CONTROLLING THE BUDGET DEFICIT HE SAYS OTHERWISE YOU GET HIGH INFLATION AND THAT'S THE REAL POISON LIKE MR GAIDAR MR ASLUND ARGUES THAT RUSSIA'S REFORMS MUSTN'T BE DERAILED IN MIDSTREAM MOST OF THE SOCIAL SUFFERING ALREADY HAS OCCURRED HE ARGUES AND REAL BENEFITS INCLUDING A RISE IN PRODUCTION SOON WILL FOLLOW IF RUSSIA BACKS AWAY FROM FISCAL REFORM NOW HE SAYS HYPERINFLATION AGAIN WILL LOOM STILL EVERYONE AGREES THAT RUSSIA NEEDS TO CREATE AN ADEQUATE SOCIAL SAFETY NET THE CHALLENGE WILL BE PROVIDING ONE WITHOUT COMPROMISING MONETARY DISCIPLINE THAT WILL BECOME ESPECIALLY CRITICAL WHEN RUSSIA CARRIES OUT PLANS TO CLOSE UNPROFITABLE ENTERPRISES AND PUT LARGE NUMBERS OF LABORERS OUT OF WORK IN THE MEANTIME MR GAIDAR IS DRAWING UP SOME INITIAL WELFARE PROGRAMS RUSSIA FOR EXAMPLE PLANS TO PROVIDE UNIVERSAL SUBSIDIES TO THOSE LIVING UNDER THE POVERTY LINE IT ALSO PLANS TO RAISE PENSIONS PROVIDE A NEW ALLOWANCE TO NEEDY FAMILIES WITH CHILDREN AND GRANT CUTRATE LOANS FOR BUYING APARTMENTS 9312230107 931223 WHO'S NEWS NEW GOVERNMENT NAMES GOVERNOR OF BANK OF CANADA BY JOHN URQUHART AND ANDREW WILLIS STAFF REPORTERS OF THE WALL STREET JOURNAL OTTAWA CANADA'S NEW LIBERAL PARTY GOVERNMENT NAMED A VETERAN CENTRAL BANKER GORDON THIESSEN GOVERNOR OF THE BANK OF CANADA TO SUCCEED JOHN CROW A HIGHLY REGARDED INFLATION FIGHTER THE APPOINTMENT WHICH WAS ANNOUNCED BY FINANCE MINISTER PAUL MARTIN WAS WELL RECEIVED IN FINANCIAL MARKETS BANKERS PREDICTED THAT MR THIESSEN 55 YEARS OLD WHO HAS BEEN SENIOR DEPUTY GOVERNOR SINCE OCTOBER 1987 WILL LIKE MR CROW BE A VIGOROUS ADVOCATE OF STABLE PRICES YOU WILL NEED A VERY LARGE MAGNIFYING GLASS TO SEE ANY CHANGE IN POLICY FROM MR CROW SAID BANK OF MONTREAL CHIEF ECONOMIST LLOYD ATKINSON WITH MR CROW AT THE HELM THE BANK OF CANADA THROUGH ITS MONETARY RESTRAINTS SUCCEEDED IN GIVING CANADA ONE OF THE WORLD'S LOWEST INFLATION RATES SO FAR THIS YEAR THE CONSUMER PRICE INDEX HAS BEEN SHOWING AN AVERAGE RISE OF 19 FROM A YEAR EARLIER PROMINENT BANKERS IN CANADA AND ABROAD RECOMMENDED THAT MR CROW WHOSE SEVENYEAR TERM AS GOVERNOR EXPIRES NEXT MONTH BE REAPPOINTED FOR A SECOND TERM BUT THE GOVERNMENT SAID MR CROW DECIDED NOT TO BE A CANDIDATE FOR A SECOND TERM FOR PERSONAL REASONS SOME INFLUENTIAL MEMBERS OF THE LIBERAL PARTY GOVERNMENT WHICH TOOK OFFICE NOV 4 WERE OPPOSED TO MR CROW'S REAPPOINTMENT THEY CLAIMED HE HAD SACRIFICED TOO MANY JOBS IN HIS PURSUIT OF LOWER INFLATION FINANCE MINISTER MARTIN HOWEVER PRAISED MR CROW AND PLEDGED HIS SUPPORT FOR THE GOAL OF PRICE STABILITY MR MARTIN NEEDS TO MAINTAIN THE CONFIDENCE OF FOREIGN INVESTORS IN CANADA'S MONETARY POLICY THE GOVERNMENT IS RELYING ON THESE INVESTORS TO HELP FINANCE THE FEDERAL GOVERNMENT'S BIG BUDGET DEFICIT THROUGH FURTHER BUYING OF CANADIAN GOVERNMENT BONDS THE DEFICIT THIS YEAR IS EXPECTED TO TOTAL ABOUT 45 BILLION CANADIAN DOLLARS US3367 BILLION AN ANNUAL RECORD FOREIGNERS HOLD MORE THAN 42 OF THE CANADIAN GOVERNMENT'S BONDS THE GOVERNMENT AND THE CENTRAL BANK HAVE ALSO AGREED TO MAINTAIN THE OBJECTIVE OF HOLDING INFLATION INSIDE THE RANGE OF 1 TO 3 DURING THE 19951998 PERIOD LEO DE BEVER CHIEF ECONOMIST AT NOMURA CANADA INC SAID THAT EXTENDING THE INFLATION REDUCTION TARGETS TO 1998 WAS IMPORTANT FOR FINANCIAL MARKETS HE SAID THAT WITHOUT SUCH A COMMITMENT THE LIBERAL GOVERNMENT MIGHT BE TEMPTED TO PUT PRESSURE ON THE CENTRAL BANK TO EASE MONETARY POLICY TO HELP THEM GET REELECTED THE LIBERAL GOVERNMENT'S MANDATE EXPIRES IN 1998 BOB WHITE PRESIDENT OF THE CANADIAN LABOUR CONGRESS AND A LONGSTANDING CRITIC OF BANK OF CANADA GOVERNOR CROW SAID HE BELIEVES MR CROW'S DEPARTURE SIGNALS A LESS RIGOROUS MONETARY POLICY CROW'S POLICY DID ENORMOUS DAMAGE TO THE COUNTRY AND TO JOBS HE SAID THE FINANCIAL MARKETS HOWEVER VIEWED MR THIESSEN'S APPOINTMENT AS AN INDICATION THAT NO SIGNIFICANT CHANGE WILL OCCUR IN THE ANTIINFLATION EFFORT OF THE BANK OF CANADA THE CANADIAN DOLLAR ROSE TO 7482 US CENTS YESTERDAY FROM 7439 CENTS TUESDAY CANADIAN BOND PRICES ALSO ROSE SHARPLY 9312230106 931223 YOUR MONEY MATTERS TAPPING YOUR RETIREMENT ASSETS HOW TO PROTECT YOURSELF FROM BAD ADVICE BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL A RETIREE WITH A FAT CHECK FROM A PENSION OR RETIREMENT PLAN CAN LOOK A LOT LIKE A WINNING LOTTERY TICKET TO SOME BROKERS AND INSURANCE AGENTS AFTER ALL RETIREES WITH RETIREMENTPLAN DISTRIBUTIONS TYPICALLY HAVE A PILE OF MONEY TO INVEST THEY'RE OFTEN DAZED AND CONFUSED AND THEY NEED HELP A GOOD SALESPERSON WITH A REASSURING PITCH MAY BE ABLE TO GENERATE SOME HANDSOME COMMISSIONS ONE EXECUTIVE IN NEW JERSEY WHO IS RETIRING SOON SAYS HE GETS AN AVERAGE OF 10 TO 15 CALLS A WEEK FROM EAGER STOCKBROKERS I'VE TRIED TO TELL THEM I'VE RETIRED AND MOVED TO INDONESIA SAYS THE 60YEAROLD EXECUTIVE WHO BEGGED THAT HIS NAME NOT BE USED BUT THEY KEEP CALLING BACK MOST BROKERAGE FIRMS MUTUALFUND COMPANIES AND INSURERS HAVE CREATED RETIREMENT PLANNING UNITS THAT ARE DESIGNED TO HELP BROKERS AND OTHER ADVISERS CAPTURE AND MANAGE MONEY THAT RETIREES HAVE ROLLED OVER INTO INDIVIDUAL RETIREMENT ACCOUNTS FROM PENSIONS AND OTHER EMPLOYERSPONSORED RETIREMENT PLANS THE QUALITY OF THE ADVICE THAT REACHES RETIREES CAN VARY ENORMOUSLY VIRTUALLY ANY PERSON WHO HAS SOLD INSURANCE OR MUTUAL FUNDS OR STOCKS HAS ASSUMED THE MANTLE OF RETIREMENT ADVISER SAYS MARK SKINNER PRESIDENT OF COPELAND COS AN EAST BRUNSWICK NJ RETIREMENTSERVICES COMPANY THAT IS A SUBSIDIARY OF TRAVELERS CORP MANY OF THE PEOPLE OFFERING TO PROVIDE POSTRETIREMENT ADVICE PRIMARILY WANT TO SELL LIFE INSURANCE OR INVESTMENTS THAT CAN BE A PROBLEM FOR RETIREES WHEN SUCH ADVISERS IN THEIR EAGERNESS TO SELL A PARTICULAR PRODUCT DON'T EXPLAIN ALL OF THE AVAILABLE OPTIONS FOR EXAMPLE INSURANCE AGENTS OFTEN PERSUADE RETIREES TO FORSAKE TAKING AN ANNUITY WITH PAYMENTS BASED ON THE JOINT LIFE EXPECTANCY OF THE RETIREE AND THE RETIREE'S SPOUSE INSTEAD RETIREES ARE ENCOURAGED TO TAKE AN ANNUITY OVER THEIR OWN LIFETIME WHICH PRODUCES A LARGER MONTHLY PAYMENT AND BUY A LIFE INSURANCE POLICY TO PROTECT THEIR SPOUSE SAYS LYNN HOPEWELL PRESIDENT OF MONITOR GROUP A FALLS CHURCH VA COMPANY THAT SPECIALIZES IN RETIREMENT PLANNING FOR INDIVIDUALS MANY RETIREES WOULD BE MUCH BETTER OFF WITH THE JOINT ANNUITY HE SAYS THAT'S ESPECIALLY TRUE FOR MILITARY RETIREES AS GOVERNMENT PENSIONS ARE DESIGNED TO KEEP PACE WITH INFLATION THERE'S NO WAY TO ACHIEVE THE SAME RESULTS WITH LIFE INSURANCE YET MANY MILITARY GUYS GET TALKED INTO IT SAYS MR HOPEWELL WHO IS ALSO EDITOR OF THE JOURNAL OF FINANCIAL PLANNING ANOTHER DRAWBACK IS THAT THE COST OF THE LIFE INSURANCE IS SO HIGH AT RETIREMENT AGE A COUPLE MIGHT NOT BE ABLE TO AFFORD ENOUGH COVERAGE TO REALLY PROVIDE INCOME PROTECTION FOR THE SPOUSE THE BOTTOM LINE MR HOPEWELL SAYS IS THAT LIFE INSURANCE SHOULD BE USED AS LIFE INSURANCE NOT AS A PENSIONREPLACEMENT STRATEGY INSURANCE AGENTS AREN'T THE ONLY ONES WITH POTENTIAL CONFLICTS OF INTEREST BROKERS AND FINANCIAL PLANNERS EAGER TO GET RETIREES' MONEY INTO ROLLOVER IRAS AND SELL THE INVESTMENTS TO PUT IN THOSE IRAS MAY ENCOURAGE RETIREES TO WITHDRAW THEIR RETIREMENT MONEY FROM A COMPANY PLAN IN ONE BIG LUMP SUM IN MANY CASES THOUGH RETIREES MIGHT BE BETTER OFF IF THEY OPTED FOR LIFETIME ANNUITY PAYMENTS THE BIG RISK IS BEING SOLD INAPPROPRIATE INVESTMENTS JIM REILLY 65 WHO RETIRED FROM DUPONT CO IN MAY SAYS HE GOT SEVERAL CALLS A WEEK FROM BROKERS TRYING TO SELL HIM COMMODITIES GOLD OVERSEAS INVESTMENTS AND STOCKS WHOSE NAMES THE BROKERS WOULDN'T DISCLOSE OVER THE PHONE MR REILLY DIDN'T BUY THEM THE NICE THING ABOUT TELEPHONES IS YOU CAN ALWAYS HANG UP HE SAYS ALMOST AS BAD AS BIASED ADVICE IS INCOMPETENT ADVICE BARTON FRANCIS A MANAGING PARTNER AT SHELLENHAMER & CO IN PALMYRA PA AN ACCOUNTING FIRM THAT SPECIALIZES IN FINANCIAL PLANNING SAYS A CLIENT SHOWED HIM A RETIREMENT AND ESTATE PLAN DRAFTED BY HIS FINANCIAL ADVISER THE PLAN LOOKED GREAT EXCEPT IT OVERLOOKED THE FACT THAT THE RETIREE'S SCANDINAVIAN WIFE ISN'T A US CITIZEN HAD THE CLIENT DIED HIS WIDOW WOULD HAVE FACED HUGE TAXES STEEP LEGAL FEES AND A LONG WAIT FOR THE MONEY SHE WOULD NEED TO LIVE ON HE SAYS EVEN COMPANYSPONSORED SEMINARS CAN BE A SOURCE OF BAD ADVICE BECAUSE EMPLOYERS DON'T WANT THE RESPONSIBILITY OF PROVIDING ADVICE THEY TYPICALLY ALLOW SECURITIES BROKERS INSURANCE AGENTS AND FINANCIAL PLANNERS TO MAKE PRESENTATIONS TO EMPLOYEES NOT SURPRISINGLY EMPLOYEE SEMINARS HAVE BECOME ONE OF THE HOTTEST WAYS FOR BROKERS AGENTS AND PLANNERS TO PROSPECT FOR NEW CLIENTS THIS ISN'T TO SAY THAT ALL WORKPLACE SEMINARS ARE SUSPECT OR THAT EVERYONE WHO EARNS COMMISSIONS IS BIASED BUT IT IS IMPORTANT TO FIND OUT HOW ANY FINANCIAL ADVISER IS COMPENSATED AND WHAT HIS OR HER CONFLICTS OF INTEREST MIGHT BE ASK QUESTIONS IF THE ADVISER WON'T ANSWER OR YOU DON'T LIKE WHAT YOU HEAR GO TO SOMEBODY ELSE HERE ARE SOME STEPS TO TAKE TO HELP YOU NAVIGATE TOWARD ETHICAL COMPETENT ADVISERS FIRST TAKE ADVANTAGE OF THE FREE SOURCES OF HELP THAT ARE AVAILABLE IF YOU WORK IN A CORPORATION CONTACT YOUR HUMAN RESOURCES DEPARTMENT AT LEAST SIX MONTHS BEFORE RETIRING TO FIND OUT WHAT YOUR PENSION AND RETIREMENT PLAN PAYOUTS WILL BE ESPECIALLY IF YOU'RE AN EXECUTIVE WITH SPECIAL NON QUALIFIED RETIREMENT PLANS THERE ARE ALSO A NUMBER OF SOURCES OF EXCELLENT FREE INFORMATION THAT CAN HELP MAP OUT THE TECHNICAL BASICS OF WHETHER OR NOT TO TAKE A LUMP SUM OR ANNUITY WHETHER TO ACCEPT EARLY RETIREMENT HOW TO TIME DISTRIBUTIONS FROM IRAS AND OTHER PLANS AND BASICS ON INVESTING STRATEGIES AND SOCIAL SECURITY PAYOUTS RETIREES WHO READ THROUGH A COUPLE OF THE AVAILABLE BOOKLETS CAN SAVE THEMSELVES HUNDREDS OR THOUSANDS OF DOLLARS IN COMMISSIONS FEES AND BAD CHOICES AND THEY WILL BE BETTER ABLE TO INTERVIEW PROSPECTIVE ADVISERS AND INSTANTLY ELIMINATE OTHERS HERE ARE SOME RED FLAGS AN ADVISER WHO WANTS TO PUT ALL YOUR MONEY INTO ONE INVESTMENT WHO SPENDS A MINIMAL AMOUNT OF TIME ON ANALYSIS OF YOUR SITUATION AND OPTIONS AND SPENDS MOST OF THE TIME LOOKING AT INVESTMENT CHOICES WHO WON'T DISCUSS HOW HE IS PAID WHO DISCOURAGES YOU FROM GETTING ANOTHER OPINION ONCE YOU HAVE A PROPOSAL GO SOMEPLACE ELSE AND GET ANOTHER SAYS STEPHEN B SAWTELLE DIVISION MANAGER OF WADDELL & REED FINANCIAL SERVICES IN HAMDEN CONN GOING BACK AND FORTH AMONG POTENTIAL ADVISERS CAN HELP RETIREES LEARN WHAT THEIR OPTIONS ARE AND MAKE MORE INFORMED DECISIONS MR SAWTELLE ALSO STRONGLY SUGGESTS THAT RETIREES HAVE PROPOSALS REVIEWED BY THEIR ATTORNEYS AND ACCOUNTANTS BEFORE MAKING A COMMITMENT THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS CAN REFER CALLERS TO MEMBERS IN THEIR REGION WHO HAVE SPECIAL FINANCIALPLANNING AND RETIREMENTPLAN EXPERTISE 8008624272 9312230105 931223 WHO'S NEWS NORTHERN TELECOM CONSOLIDATES BUSINESS AND NAMES ROTH TO KEY OPERATIONS POST BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NORTHERN TELECOM LTD STRUGGLING TO REVERSE A PRECIPITOUS SLIDE IN ITS US BUSINESS CONSOLIDATED INTO TWO GROUPS AND ELEVATED ONE EXECUTIVE TO HEAD UP MOST OPERATIONS AND PRODUCT PLANNING THE CHANGES WHICH TAKE EFFECT JAN 1 ARE THE BIGGEST LAUNCHED SO FAR BY THE COMPANY'S NEW CHIEF EXECUTIVE OFFICER JEAN MONTY WHO TOOK THE REINS AT THE TROUBLED COMPANY FOLLOWING THE RESIGNATION OF NORTHERN'S EMBATTLED FORMER CHAIRMAN PAUL STERN EARLIER THIS YEAR PROMOTED IN THE REORGANIZATION WAS JOHN A ROTH 51 YEARS OLD CURRENTLY PRESIDENT OF WIRELESS SYSTEMS AT THE TORONTOBASED TELECOMMUNICATIONSEQUIPMENT SUPPLIER HE WILL SUPERVISE MOST OF NORTHERN'S OPERATIONS AS PRESIDENT OF A NEW NORTEL NORTH AMERICA GROUP AND HIS RESPONSIBILITIES WILL COVER SWITCHING EQUIPMENT MULTIMEDIACOMMUNICATION SYSTEMS TRANSMISSION GEAR AND PARTS AND WIRELESS SYSTEMS MR ROTH HAS MADE A STUNNING CLIMB THROUGH NORTHERN'S RANKS IN THE LAST FEW YEARS A FORMER PRESIDENT OF BELL NORTHERN RESEARCH NORTHERN'S RESEARCHANDDEVELOPMENT LABS HE WILL ALSO BECOME AN EXECUTIVE VICE PRESIDENT OF NORTHERN THIS WILL MAKE HIM THE NO 3 EXECUTIVE AT NORTHERN AFTER MR MONTY AND NORTHERN'S CHAIRMAN O BRADFORD BUTLER AT THE SAME TIME ONE OF NORTHERN'S HIGHESTRANKING EXECUTIVES ROY A MERRILLS 59 WILL RETIRE A 36YEAR VETERAN MR MERRILLS FOR THE PAST YEAR HAS BEEN NORTHERN'S EXECUTIVE VICE PRESIDENT RUNNING ITS BUSINESS FROM THE US AND CANADA THROUGH SOUTH AMERICA ALSO NAMED YESTERDAY TO HEAD UP A NEW NORTEL WORLD TRADE GROUP WAS JAMES R LONG 51 CURRENTLY NORTHERN'S EXECUTIVE VICE PRESIDENT INTERNATIONAL HE WILL OVERSEE NORTHERN'S BUSINESSES IN THE ASIAPACIFIC AREA EUROPE AND CENTRAL AND LATIN AMERICA NORTHERN HAS LOST THE MOST GROUND IN THE US FROM HUGE SOFTWARE PROBLEMS IN ITS MAIN SWITCHING LINE AND LATE DELIVERIES OF CRUCIAL TRANSMISSION PRODUCTS THAT WOULD HAVE KEPT THE COMPANY COMPETITIVE WITH AMERICAN TELEPHONE & TELEGRAPH CO IN THE BELL MARKET WHILE AT&T'S SHARE OF THE HOTLY COMPETITIVE 6 BILLION US MARKET FOR DIGITAL SWITCHING HAS GROWN TO ABOUT 50 FROM 47 LAST YEAR NORTHERN'S SHARE SANK BY TWO PERCENTAGE POINTS TO 33 ACCORDING TO NORTHERN BUSINESS INFORMATION INC A NEW YORK RESEARCH FIRM THE DECLINE HAS LED NORTHERN TO CUT BACK MANUFACTURING AND CLOSE OR CONSOLIDATE NUMEROUS PLANTS AND THE COMPANY TOOK A US1 BILLION SECONDQUARTER RESTRUCTURING CHARGE THAT CAUSED ITS PARENT CANADIAN GIANT BCE INC TO POST A LOSS OF 147 MILLION CANADIAN DOLLARS US1093 MILLION FOR THE 1993 NINE MONTHS MR MONTY SAID IT WOULD BE TOTALLY UNFAIR TO BLAME ANY OF NORTHERN'S PROBLEMS ON MR MERRILLS A YEAR AGO MR MONTY SAID MR MERRILLS WANTED TO RETIRE BUT AGREED TO STAY ON FOR AN EXTRA YEAR AT NORTHERN'S REQUEST MR MERRILLS SAID HE HAD ALWAYS PLANNED TO RETIRE BY AGE 60 AND NOTED THAT HE HADN'T SUPERVISED SWITCH DEVELOPMENT SINCE 1991 A YEAR BEFORE NORTHERN'S SOFTWARE PROBLEMS STARTED HE WAS REASSIGNED IN 1991 TO HEAD UP SALES SERVICE AND MARKETING IN JULY MR MONTY ANNOUNCED A 158 MILLION SOFTWARE OVERHAUL AIMED AT IMPROVING THE RELIABILITY OF NORTHERN'S SWITCHING SOFTWARE AND COMING UP WITH NEW SERVICE FEATURES WE STILL HAVE A LOT OF WORK TO DO MR MONTY SAID WE'RE ABOUT 30 TO 40 DONE 9312230104 931223 ADMINISTRATION LOOKS FAVORABLY ON IDEA OF EMPLOYEE OWNERSHIP BY MICHAEL J MCCARTHY WHEN DID WASHINGTON GET SO REDHOT ON EMPLOYEE OWNERSHIP ONE CATALYST WAS A GATHERING IN CHICAGO LAST JULY WHERE PRESIDENT CLINTON QUESTIONED A PANEL OF ACADEMICS BUSINESS EXECUTIVES AND UNION LEADERS ON THE FUTURE OF THE WORKPLACE WHILE THE IDEA OF EMPLOYEE OWNERSHIP HAS BEEN AROUND FOR A WHILE IT TOOK A NEW ADMINISTRATION TO PUT IT ON THE FRONT BURNER AT THE SESSION THE PRESIDENT WAS ESPECIALLY CAPTIVATED BY A SHORT PRESENTATION BY ROB ZICARO A 40YEAROLD FACTORY MACHINE OPERATOR FOR WEB INDUSTRIES INC A WESTBOROUGH MASS MAKER OF PRINTING PAPER THAT IS 30OWNED BY ITS EMPLOYEES MR ZICARO SAID WEB GIVES ALL ITS WORKERS THREEPAGE MONTHLY FINANCIAL STATEMENTS THAT DETAIL EVERYTHING FROM THE COST OF GOODS SOLD TO TELEPHONE BILLS WEARING A DARKBLUE WEB TSHIRT EMBLAZONED WITH EMPLOYEE OWNERS AND CONSPICUOUS IN A ROOM FULL OF SUITS AND TIES MR ZICARO EXPLAINED HOW WEB'S 225 EMPLOYEES USE LUNCH BREAKS TO READ AND DISCUSS SELFHELP AND BUSINESSMANAGEMENT BOOKS SUCH AS SEVEN HABITS OF HIGHLY EFFECTIVE PEOPLE IN THE MIDDLE OF MR ZICARO'S TALK MR CLINTON SAID I THINK THE GOVERNMENT OUGHT TO BE SUPPORTIVE OF EMPLOYEE OWNERSHIP AND AFTER ASKING MR ZICARO AND OTHER PARTICIPANTS TO SEND HIM MORE INFORMATION MR CLINTON LATER COMMENTED I DO THINK EMPLOYEEOWNED FIRMS OFTEN DO WORK AND THEY'VE OBVIOUSLY GOT A BETTER CHANCE TO WORK IF EMPLOYEES AREN'T ASKED TO COME IN AND TAKE THEM OVER WHEN THEY'RE ALMOST TOO FAR GONE THERE HAVE BEEN SOME REMARKABLE SUCCESS STORIES AND THE FACT THAT THEY HAVEN'T ALL SUCCEEDED ISN'T AN ARGUMENT AGAINST THEM ABOUT THE SAME TIME THE LABOR DEPARTMENT CREATED AN OFFICE OF THE AMERICAN WORKPLACE PARTLY TO PROMOTE LABORMANAGEMENT COOPERATION THE DEPARTMENT IS CONSIDERING FORMING PILOT PROGRAMS IN A FEW STATES HOPING THAT FEDERAL FUNDING WILL PROMOTE DEVELOPMENT OF EMPLOYEE OWNERSHIP AT THE HEART OF THE DEPARTMENT'S EFFORT IS A BELIEF THAT IF COMPANIES ACT MORE LIKE DEMOCRACIES WITH EMPLOYEES HAVING A SAY IN THE DIRECTION OF THEIR WORKPLACE THEY WILL BE MORE PRODUCTIVE AND MORE COMPETITIVE GLOBALLY IN EMPLOYEEOWNED COMPANIES THE VALUE OF EMPLOYEE PARTICIPATION IS UNDERSTOOD FROM DAY ONE SAYS MARTIN MANLEY AN ASSISTANT SECRETARY OF LABOR WHO HEADS THE DEPARTMENT'S NEW WORKPLACE DIVISION MR MANLEY AND OTHER DEPARTMENTAL OFFICIALS INCLUDING LABOR SECRETARY ROBERT REICH HELPED BROKER THE BUYOUT NEGOTIATIONS BETWEEN UAL CORP'S UNITED AIRLINES AND ITS UNIONS OVER THE PAST SEVERAL WEEKS THE PRESIDENT'S NATIONAL AIRLINE COMMISSION FORMED AT THE SUGGESTION OF UAL CHAIRMAN STEPHEN M WOLF GAVE EMPLOYEE OWNERSHIP A BOOST LAST SUMMER THE COMMISSION'S REPORT RECOMMENDED COOPERATIVE PARTNERSHIPS BETWEEN LABOR AND MANAGEMENT AS A WAY TO PRESERVE THE JOBS OF AVIATION WORKERS WHO ARE AMONG THE NATION'S MOSTLY HIGHLY SKILLED AND HIGHLY PAID WORKERS MANAGEMENT SHOULD SEEK REAL WORKER INPUT NOT JUST CONCESSIONS IN TIMES OF DIRE FINANCIAL NEED THE REPORT SAID THE COMMISSION RECOMMENDED THAT INTERNAL REVENUE SERVICE REGULATIONS BE CHANGED TO ENCOURAGE BROADER USE OF EMPLOYEE STOCK OWNERSHIP PLANS THE LABOR DEPARTMENT'S MR MANLEY SAYS THE ADMINISTRATION VIEWS THE UNITED AIRLINES TRANSACTION AS SETTING A HIGHLY VISIBLE AND IMPORTANT MODEL OF A COOPERATIVE WORKPLACE IT IS AN IMPORTANT NEW ROLE OF UNIONS IN THIS ECONOMY TO REPRESENT EMPLOYEES IN RESTRUCTURING NOT JUST FOR COLLECTIVE BARGAINING MR MANLEY ADDS 9312230103 931223 BUSINESS BRIEF TELEDYNE INC DEFENSE AGENCY LIFTS BAN OF US CONTRACTS FOR UNIT TELEDYNE INC LOS ANGELES SAID A DEFENSE DEPARTMENT AGENCY LIFTED A BAN FROM GOVERNMENT CONTRACTING IMPOSED ON A TELEDYNE SUBSIDIARY IN APRIL THE DEFENSE LOGISTICS AGENCY ENDED ITS DEBARMENT OF TELEDYNE RELAYS WHICH PLEADED GUILTY LAST YEAR TO MAKING FALSE STATEMENTS ABOUT THE TESTING OF ELECTRONIC SWITCHES USED IN MISSILES AND SPACE LAUNCH VEHICLES TELEDYNE ALSO PAID A FINE OF 175 MILLION AMONG THE LARGEST CRIMINAL FINES EVER AGAINST A DEFENSE CONTRACTOR THE DEBARMENT WHICH WAS ORIGINALLY SCHEDULED TO LAST ONE YEAR WAS LIFTED FOUR MONTHS EARLY AS THE COMPANY WORKED TO RESOLVE ISSUES RAISED BY THE AGENCY TELEDYNE'S STOCK ROSE 125 CENTS TO 2575 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9312230102 931223 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 BEVERLY ENTERPRISES INC 25 MILLION OF 875 NOTES DUE 2003 THROUGH UNDERWRITERS DAIN BOSWORTH INC AND JC BRADFORD & CO NORTHERN TRUST CORP 250 MILLION OF BANK NOTES DUE DEC 30 1994 PRICED INITIALLY AT PAR TO YIELD 3625 ACCORDING TO MCM CORPORATEWATCH RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PREMIERE PAGE INC INITIAL OFFERING OF THREE MILLION COMMON SHARES PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY NOMURA SECURITIES INTERNATIONAL SALOMON BROTHERS WORLDWIDE INCOME FUND INITIAL OFFERING OF 115 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC SCHRODER ASIA GROWTH FUND INITIAL OFFERING OF 172 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO COLUMBUS REALTY TRUST INITIAL OFFERING OF 69 MILLION COMMON SHARES PRICED AT 1725 EACH THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC NASSAU COUNTY NY 120 MILLION OF TAXANTICIPATION NOTES PRICED BY A CHEMICAL SECURITIES INC GROUP THE 50 MILLION OF SERIES A TANS DUE MARCH 15 1994 ARE 25S PRICED TO YIELD 21 THE 70 MILLION OF SERIES B TANS ARE 3S PRICED TO YIELD 268 ON DEC 29 1994 S&P RATED THE NOTES SP1 VIRGINIA HOUSING DEVELOPMENT AUTHORITY 127 MILLION OF MORTGAGE REVENUE BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP INCLUDED ARE 635 MILLION OF SERIES K SUBSERIES KSTEM BONDS THEY ARE 265S PRICED AT PAR TO YIELD 265 ON DEC 15 1994 THESE BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX THE 635 MILLION OF SERIES L SUBSERIES LSTEM BONDS ARE 25S PRICED AT PAR TO YIELD 25 ON DEC 15 1994 MOODY'S RATED THE BONDS DOUBLEA/VMIG1 AND S&P ASSIGNED A DOUBLEA RATING FEDERAL HOME LOAN MORTGAGE CORP 214 MILLION STRIPPED MORTGAGEBACKED SECURITIES TRUST OFFERED BY GOLDMAN SACHS & CO THE OFFERING STRIPS TRUST 159 USES COLLATERAL FROM FREDDIE MAC'S GOLD REMIC 1663 WHICH IS A 1 BILLION DEAL BACKED BY THE AGENCY'S GOLD 30YEAR 7 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 175 MILLION OF REALESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 19945 IS BACKED BY FANNIE MAE 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CS FIRST BOSTON INC THE OFFERING SERIES 19949 IS BACKED BY THE AGENCY'S PRINCIPALONLY STRIPS TRUST 251 WHICH IN TURN IS BACKED BY 30YEAR 8 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 84812 AND WEIGHTED AVERAGE MATURITY OF 342 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 19946 IS BACKED BY VARIOUS FANNIE MAE REMICS OUTSTANDING EUROPEAN COMPANY FOR THE FINANCING OF RAILROAD ROLLING STOCK EUROFIMA SUPRANATIONAL 25 BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 19 2001 AT ISSUE AND FIXED REOFFER PRICE 107902 VIA NIKKO EUROPE PLC INTEREST PAID SEMIANNUALLY AT 75 BASIS POINTS OVER SIXMONTH LONDON INTERBANK OFFERED RATE FEES UNDISCLOSED EUROPEAN COAL AND STEEL COMMUNITY SUPRANATIONAL 112 BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 26 2001 AT ISSUE AND FIXED REOFFER PRICE 1086 VIA MITSUBISHI FINANCE INTERNATIONAL PLC AND NIKKO EUROPE PLC INTEREST PAID SEMIANNUALLY AT 80 BASIS POINTS OVER LIBOR FEES UNDISCLOSED HANKYU DEPARTMENT STORES INC JAPAN 10 BILLION YEN OF 3 EUROBONDS DUE APRIL 20 1999 AT ISSUE PRICE 101875 VIA SANWA INTERNATIONAL PLC REOFFERED AT 10035 TO YIELD 293 FEES 1875 JAPAN AIRLINES JAPAN 30 BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 14 1998 AT ISSUE PRICE 104305 VIA NIKKO EUROPE PLC INTEREST PAID ANNUALLY AT 60 BASIS POINTS OVER 12MONTH LIBOR FEES UNDISCLOSED KOMMUNEKREDIT DANISH AGENCY 150 BILLION LIRE OF 8 EUROBONDS DUE JAN 19 2004 AT ISSUE PRICE 10175 VIA BANCA DI ROMA BONDS PRICED TO YIELD 804 FEES TWO MITSUBISHI ELECTRIC CORP JAPAN 20 BILLION YEN OF 32 EUROBONDS DUE APRIL 20 2000 ISSUED AT 101775 VIA MITSUBISHI FINANCE INTERNATIONAL PLC AT COMANAGERS' BREAKEVEN PRICE 999 BONDS YIELD 322 FEES 1875 MITSUI TOATSU CHEMICALS INC JAPAN 10 BILLION YEN OF 35 EUROBONDS DUE JAN 26 2001 AT ISSUE PRICE 101865 VIA SAKURA FINANCE INTERNATIONAL LTD BONDS REOFFERED AT 10025 TO YIELD 346 FEES 1875 SWEDISH EXPORT CREDIT CORP SWEDISH AGENCY 10 BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 14 1999 AT ISSUE AND FIXED REOFFER PRICE 10809 VIA IBJ INTERNATIONAL LTD INTEREST PAID QUARTERLY AT 15 TIMES THREEMONTH LIBOR FEES 03 SWEDISH NATIONAL HOUSING FINANCE CORP SWEDEN 30 BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 11 1999 AT ISSUE PRICE 10716 VIA MERRILL LYNCH INTERNATIONAL LTD INTEREST PAID SEMIANNUALLY AND FLOATS AT 150 BASIS POINTS OVER SIXMONTH LIBOR FEES 025 URBAN MORTGAGE BANK OF SWEDEN SWEDEN 60 MILLION OF FLOATINGRATE EURONOTES DUE SEPT 15 1995 AT ISSUE AND FIXED REOFFER PRICE 99975 VIA SALOMON BROTHERS INTERNATIONAL LTD INTEREST PAID QUARTERLY AND FLOATS AT 20 BASIS POINTS OVER LIBOR FEES 0125 9312230101 931223 BENTSEN URGES JAPAN TO STIMULATE ECONOMY WASHINGTON TREASURY SECRETARY LLOYD BENTSEN ONCE AGAIN URGED THE JAPANESE TO STIMULATE THEIR SAGGING ECONOMY IN LIGHT OF RECENT CYCLICAL AND EXCHANGERATE DEVELOPMENTS WE AT THE TREASURY ARE CONCERNED THAT JAPAN ISN'T MEETING ITS COMMITMENT TO ACHIEVE DOMESTIC DEMANDLED GROWTH HE SAID IN A STATEMENT HE REITERATED THE US VIEW THAT JAPAN NEEDS TO REDUCE ITS TRADE SURPLUS SIGNIFICANTLY MR BENTSEN'S STATEMENT ARRESTED THE RISE OF THE DOLLAR AGAINST THE YEN IN FINANCIAL MARKETS YESTERDAY THE YEN HAS BEEN SINKING LATELY BECAUSE OF THE WEAKNESS OF THE JAPANESE ECONOMY IT HAS TRADED ABOVE 111 YEN TO THE DOLLAR LATELY BUT SANK AFTER MR BENTSEN'S STATEMENT IT WAS QUOTED AT 11035 YEN TO THE DOLLAR IN LATE TRADING IN NEW YORK YESTERDAY UNTIL RECENTLY THE YEN HAD BEEN RELATIVELY STRONG A STRONG YEN TENDS TO REDUCE THE JAPANESE TRADE SURPLUS BY MAKING JAPANESE GOODS RELATIVELY MORE EXPENSIVE TO FOREIGNERS A DEVELOPMENT THAT IS CAUSING SUBSTANTIAL PAIN AMONG JAPANESE MANUFACTURERS THE US HAS BEEN URGING THE JAPANESE TO CUT INCOME TAXES TO SPUR DOMESTIC DEMAND BOTH FOR JAPANESE AND FOREIGNMADE GOODS AND SHRINK ITS LARGE TRADE SURPLUS US AND JAPANESE OFFICIALS ALSO ARE IN THE MIDST OF NEGOTIATIONS AIMED AT IMPLEMENTING A JULY ACCORD BETWEEN THE TWO COUNTRIES THAT WOULD SET UP BENCHMARKS TO MEASURE JAPAN'S PROGRESS TOWARD OPENING ITS MARKETS TO FOREIGNERS 9312230100 931223 PROVIDENCE HEALTH AGREES TO BE SOLD TO SPLIT ITS BOARD BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PROVIDENCE HEALTH CARE INC SAID IT HAS AGREED TO PUT ITSELF UP FOR SALE AS PART OF AN AGREEMENT WITH AN INVESTOR GROUP THAT HAD SOLICITED PROXIES IN AN EFFORT TO REPLACE THE BOARD PROVIDENCE WHICH OPERATES NURSING HOMES SAID IT REACHED AN AGREEMENT WITH COMMONWEALTH ASSOCIATES A NEW YORK INVESTMENT BANK AN INVESTOR GROUP INCLUDING COMMONWEALTH OWNS ABOUT 9 OF PROVIDENCE'S SHARES OUTSTANDING COMMONWEALTH SERVED AS MANAGING UNDERWRITER FOR PROVIDENCE'S 1992 INITIAL PUBLIC OFFERING BOTH PARTIES AGREED TO DROP LAWSUITS AGAINST EACH OTHER AS PART OF THE AGREEMENT PROVIDENCE IN BEREA OHIO SAID IT ALSO HAS AGREED TO SPLIT ITS FOURMEMBER BOARD WITH COMMONWEALTH REPRESENTATIVES NAMED TO THE BOARD WERE KERRY J DUKES 31 YEARS OLD CHIEF OPERATING OFFICER OF COMMONWEALTH AND KAMAL MUSTAFA 45 CHIEF EXECUTIVE OFFICER OF HAMILTON CAPITAL PARTNERS INC A FINANCIAL ADVISER TO COMMONWEALTH THEY SUCCEED HARVEY WERSHBLE AND THOMAS W JANES REMAINING ON THE BOARD ARE LAWRENCE B CUMMINGS 38 WHO WILL ALSO STAY ON AS PROVIDENCE'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER AND BRIAN A LINGARD 35 PRESIDENT OF BA LINGARD & CO AN INVESTMENT BANK THAT HAS BEEN ADVISING PROVIDENCE UNDER THE AGREEMENT THE COMPANY WILL SOLICIT ACQUISITION BIDS ASSISTED BY HAMILTON CAPITAL PARTNERS ACCORDING TO MR DUKES PROVIDENCE HAS RECEIVED EXPRESSIONS OF INTEREST FROM A NUMBER OF COMPANIES SOME POTENTIAL BUYERS ARE ACTUALLY DOING DUE DILIGENCE HE SAID MR CUMMINGS SAID THE AGREEMENT SHOULD BENEFIT ALL SHAREHOLDERS BY PROVIDING THEM WITH MAXIMUM VALUE IN THE NEAR TERM PEOPLE CLOSE TO THE COMPANY WHICH HAS A MARKET CAPITALIZATION OF ABOUT 25 MILLION BASED ON YESTERDAY'S CLOSING PRICE BELIEVE THE SALE COULD FETCH 27 MILLION TO 30 MILLION PROVIDENCE STOCK CLOSED AT 5375 A SHARE DOWN 125 CENTS YESTERDAY IN TRADING ON THE NASDAQ STOCK MARKET COMMONWEALTH LAUNCHED ITS EFFORT TO TAKE CONTROL OF THE COMPANY LAST AUGUST THE INVESTORS WERE DISSATISFIED WITH MANAGEMENT PARTICULARLY THE LEVEL OF OVERHEAD INCLUDING EXECUTIVE COMPENSATION AND WANTED TO CONSIDER A MERGER OR SALE MY CONCERN WAS CUMMINGS WOULD NOT SELL THE COMPANY AND KEEP CONTROL HIMSELF MR DUKES SAID MR CUMMINGS ACKNOWLEDGED THAT HE HAD HOPED TO GROW THE COMPANY THROUGH ACQUISITIONS BUT SAID THIS IS A VERY FAVORABLE OUTCOME THE AGREEMENT ENDS A VERY COSTLY FIGHT FOR CONTROL HE SAID ADDING THAT THIS IS A VERY GOOD TIME TO SELL A NURSING HOME COMPANY ACCORDING TO MR DUKES COMMONWEALTH ULTIMATELY SOLICITED ABOUT 55 OF VOTING STOCK IN FAVOR OF REPLACING THE BOARD BUT COMMONWEALTH AGREED TO MAKE SOME CONCESSIONS NAMELY SHARING THE BOARD WITH CURRENT MANAGEMENT IN EXCHANGE FOR OBTAINING A COMMITMENT TO TRY TO SELL THE COMPANY IT'S IN THE BEST INTEREST OF EVERYBODY MR DUKES SAID WE WANT TO GO OUT THERE AND SELL THE COMPANY AND MAXIMIZE SHAREHOLDER VALUE NOTHING GOOD COULD HAVE COME OF PROLONGED LITIGATION 9312230099 931223 PHILANTHROPY FOR CHARITY GROUPS 'TIS A PRIME SEASON FOR SENDING LOTS OF DIRECTMAIL APPEALS BY PAMELA SEBASTIAN STAFF REPORTER OF THE WALL STREET JOURNAL THE GIVING TIME OF YEAR UNFOLDS TO SILVER BELLS MISTLETOE AND CHARITY JUNK MAIL ROASTING ON AN OPEN FIRE HUNDREDS OF NONPROFIT ORGANIZATIONS ARE RINGING OUT 1993 WITH MASSIVE DIRECTMAIL CAMPAIGNS TAILORED TO KNOWN AND PROSPECTIVE DONORS EMOTIONAL GIVERS AND TAXBREAKSEEKERS AND THE CHOICEST GROUP OF ALL DONORS WHO ARE POTENTIAL UPGRADES THESE ARE WEALTHIER DONORS TARGETED FOR BIGGER GIFTS THERE'S A FREEFORALL AT THE END OF THE YEAR SAYS JEROME PICKHOLZ CHIEF EXECUTIVE OF OGILVY & MATHER DIRECT A NEW YORK DIRECTMARKETING UNIT OF WPP GROUP'S OGILVY & MATHER THERE'S NO QUESTION THERE'S COMPETITION FOR THE MAILBOX COMPETITION FOR THE MIND AND COMPETITION FOR THE WALLET BUT THE LAST THING YOU WANT TO DO IS STEP AWAY FROM THE FRAY IF YOU'RE NOT OUT THERE YOU GET NOTHING ADDS MR PICKHOLZ WHO IS ALSO GENERAL CAMPAIGN CHAIRMAN FOR THE AMERICAN RED CROSS IN GREATER NEW YORK LIKE RETAILERS CHARITIES COUNT ON YEAREND BUSINESS FOR A BIG PROPORTION OF THEIR ANNUAL FUNDS THE NEW YORK RED CROSS FOR INSTANCE MAY GET 40 OF ITS DONATIONS DURING THE LAST SIX WEEKS OF THE YEAR AND THE SALVATION ARMY COUNTS ON CHRISTMAS APPEALS FOR ABOUT ONETHIRD OF ITS GIFTS FROM INDIVIDUALS LAST YEAR OVERALL DONATIONS TO THE SALVATION ARMY REACHED 7263 MILLION THIS YEAR'S CHRISTMAS DRIVE IS RUNNING SOME 4 BEHIND LAST YEAR SO SALVATION ARMY POSTS IN SEVERAL CITIES ARE PLANNING A SPECIAL YEAREND MAILING NEXT WEEK SAYS A NATIONAL SPOKESMAN POSTAL RATES ON THIRDCLASS MAIL FOR NONPROFITS CAN BE AS LOW AS HALF THE RATE ON COMMERCIAL MAIL SAYS VAN H SEAGRAVES PUBLISHER OF BUSINESS MAILERS REVIEW A NEWSLETTER ON POSTAL ISSUES BUT THE OLD RULE IN DIRECT MAIL IS IT ISN'T THE COST IT'S THE RESPONSE RATE HE SAYS HE NOTES THAT FOR THE YEAR ENDED IN SEPTEMBER NONPROFIT MAIL WAS FLAT AT 119 BILLION PIECES ALTHOUGH THE PERSISTENT CHARITY APPEALS ANNOY SOME PEOPLE THEY WORK AND THE STAKES ARE HIGH IN 1992 INDIVIDUALS ACCOUNTED FOR 88 OF OVERALL GIVING WHICH ROSE 64 TO 12431 BILLION ACCORDING TO THE AMERICAN ASSOCIATION OF FUNDRAISING COUNSEL'S AAFRC TRUST FOR PHILANTHROPY IN NEW YORK AND THIS YEAR GIVING SEEMS LIKELY TO RISE AT LEAST AS MUCH AS INFLATION SAYS THE TRUST THE TRADE GROUP'S RESEARCH ARM THERE ARE MANY DIFFERENT STRATEGIES FOR ELICITING THOSE GIFTS THE NATURE CONSERVANCY AN ARLINGTON VA CONSERVATION GROUP RECENTLY MAILED LETTERS TO DONORS WHO ALREADY HAD GIVEN IT AT LEAST 1000 THE BUSINESSLIKE PITCH FOCUSED ON GIFT STRATEGIES SUCH AS OFFSETTING A HIGHER MARGINAL TAX RATE THE CONSERVANCY ALSO TROTTED OUT ITS PROSPECTING LETTER FEATURING ITS STAR FUNDRAISER THE NATIVE AMERICAN SANDHILL CRANE THE TRIEDANDTRUE PITCH ASKS FOR ONLY 10 AN AMOUNT SMALL ENOUGH TO WIN A GIFTAND A POTENTIAL LONGTERM DONOR TO EXPAND THEIR GIVING BASES AND COAX DONORS INTO BIGGER GIFTS DOWN THE ROAD MANY CHARITIES USE RENTED OR LOANED DONOR LISTS SUCH DONOR ACQUISITION PROGRAMS ARE COSTLY ESPECIALLY THOSE INVOLVING STARTING A DIRECTMAIL CAMPAIGN FROM SCRATCH COSTS CAN INCLUDE CREATING RENTING OR BUYING LISTS OF DONORS AND TAILORING THEM TO THE NONPROFIT DONOR PROSPECTING CAN BE SO COSTLY THAT SOMETIMES IN THE FIRST YEAR OF A STARTUP GROUP'S DONORBUILDING CAMPAIGN YOU MAY SPEND MORE THAN YOU TAKE IN SAYS KENNETH ALBRECHT PRESIDENT OF THE NATIONAL CHARITIES INFORMATION BUREAU NEW YORK BECAUSE OF COMPUTERSERVICE COSTS PRINTING AND OTHER EXPENSES RECENTLY THE US MARINE CORPS RESERVE TOYS FOR TOTS FOUNDATION AMHERST NY FOUND ITSELF UNABLE TO BUY TOYS THIS CHRISTMAS EVEN THOUGH IT RAISED SOME 93 MILLION SINCE JULY 1992 WHEN IT LAUNCHED A NATIONAL MAIL CAMPAIGN BY A PROFESSIONAL FUNDRAISING FIRM THE FUNDRAISING ATE UP WHAT WAS RAISED IN DONATIONS WE KNOW IT DOESN'T LOOK GOOD ON THE FIRST YEAR WE'RE GOING TO STAND UP AND TAKE OUR LUMPS SAYS BILL GREIN A RETIRED MARINE MAJOR AND HEAD OF OPERATIONS LOCAL NEW JERSEY POSTAL AUTHORITIES HAVE BEGUN AN INFORMAL INQUIRY INTO THE CAMPAIGN THE FOUNDATION WHICH IS SEPARATE FROM THE TOYS FOR TOTS PROGRAM WAS FORMED IN 1989 TO PROVIDE A YEARROUND SOURCE OF FUNDS FOR THE TOY CAMPAIGN IT'S SCALING BACK THE DRIVE BUT EXPECTS TO GET 1 MILLION OR SO SOON FROM THE CAMPAIGN TO USE FOR NEXT YEAR AND MANY NONPROFITS ARE TAKING ADVANTANGE OF THE TAXYEAR'S END ONE CONSERVANCY APPEAL FOR EXAMPLE NOTES THAT DONORS CAN DEDUCT AT REALMARKET VALUE GIFTS OF HARD ASSETS WITHOUT TRIGGERING THE ALTERNATIVE MINIMUM TAX THE CONSERVANCY RECEIVED SOME 505 MILLION OF DONATED LAND IN ITS YEAR ENDED LAST JUNE NORTHWESTERN UNIVERSITY RECENTLY SENT A ONEPAGE BULLETIN TO ITS CHOICEST 15000 ALUMNI ALERTING THEM TO A SLIGHT JAN 1 ROLLBACK OF THE INTEREST RATES PAID BY THE UNIVERSITY AND OTHER CHARITABLE ORGANIZATIONS ON CHARITABLEGIFT ANNUITIES THESE ARE DEFERRED GIFTS THAT COMBINE GIVING AND INVESTING THE NATIONAL ASSOCIATION THAT SETS THE RATES SUGGESTED IN LATE OCTOBER TO SHAVE THE RATE AND JONATHAN HEINTZELMAN DIRECTOR OF PLANNED GIVING AND MAJOR GIFTS FOR THE UNIVERSITY IN EVANSTON ILL SAW A TWOMONTH MARKETING OPPORTUNITY A QUICK MAILING THAT COST ABOUT 10000 WAS ON ITS WAY SHORTLY AFTER THE ASSOCIATION'S DECISION WAS THE STRATEGY WORTH THE EFFORT WHEN ALL THE DUST SETTLES BY THE END OF DECEMBER WE'LL PROBABLY HAVE OVER 1 MILLION IN NEW GIFT ANNUITIES SAYS MR HEINTZELMAN 9312230098 931223 HARMON INDUSTRIES EXPECTS '93 PROFIT CLOSE TO FORECASTS BY LAURA KNICKERBOCKER LLOYD SPECIAL TO THE WALL STREET JOURNAL BLUE SPRINGS MO HARMON INDUSTRIES INC EXPECTS TO REPORT 1993 EARNINGS CLOSE TO ANALYSTS' FORECASTS OF 109 A SHARE CHARLES M FOUDREE CHIEF FINANCIAL OFFICER SAID HARMON PLANS TO RELEASE FOURTHQUARTER AND FULLYEAR RESULTS IN EARLY FEBRUARY IN 1992 HARMON WHICH SUPPLIES SPECIALIZED EQUIPMENT TO RAILROADS AND TRANSIT SYSTEMS REPORTED EARNINGS FROM CONTINUING OPERATIONS OF 87 CENTS A SHARE INCLUDING GAINS FROM DISCONTINUED OPERATIONS AND EXTRAORDINARY ITEMS THE COMPANY REPORTED NET INCOME OF 95 CENTS A SHARE FOR 1992 MR FOUDREE NOTED THAT IN APRIL HARMON ISSUED STOCK INCREASING SHARES OUTSTANDING 20 LAST YEAR'S PERSHARE EARNINGS REFLECT SHARES OUTSTANDING BEFORE THE OFFERING AND AREN'T COMPARABLE TO 1993 FIGURES HE SAID IN NASDAQ STOCK MARKET TRADING HARMON'S SHARES CLOSED UNCHANGED AT 2175 MR FOUDREE SAID HARMON'S 1993 REVENUE WILL BE CLOSE TO 95 MILLION TO 100 MILLION UP FROM 819 MILLION LAST YEAR IN THE FIRST NINE MONTHS EARNINGS WERE 80 CENTS A SHARE ON 61 MILLION SHARES OUTSTANDING SALES WERE 706 MILLION A YEAR EARLIER THE COMPANY EARNED 69 CENTS A SHARE ON 53 MILLION SHARES OUTSTANDING SALES WERE 58 MILLION MR FOUDREE SAID HARMON IS PLACING A HIGH PRIORITY ON ACQUISITIONS TO INCREASE ITS SIZE WE INTEND TO ACQUIRE IN '94 HE SAID ANY ACQUISITION WOULD BE IN HARMON'S NICHE OF SAFETY TRAINCONTROL AND TRAINIMPROVEMENT PRODUCTS FOR MAJOR RAILROAD CARRIERS AND SHORTLINE RAILROADS HE SAID HE EXPECTS HARMON TO HAVE CONSIDERABLE CASH IN THE BANK TO FINANCE ACQUISITIONS MR FOUDREE ALSO SAID THE COMPANY'S BACKLOG IS NEAR A RECORD 43 MILLION COMPARED WITH 1992 FOURTHQUARTER BACKLOG OF ABOUT 22 MILLION HARMON'S INCREASED SALES TO METROPOLITAN TRANSIT SYSTEMS MEAN BACKLOG SHOULD CONTINUE TO RISE SINCE MANY TRANSIT PROJECTS HAVE LONG COMPLETION TIMES MR FOUDREE SAID HARMON'S TRANSIT BUSINESS HAS ABOUT 7 MARKET SHARE IN NORTH AMERICA UP FROM 2 A YEAR AGO WE EXPECT TO BUILD OUR MARKET SHARE HE SAID HE BELIEVES HARMON WILL INCREASE ITS SALES TO TRANSIT SYSTEMS BECAUSE OF A CHANGES IN TECHNOLOGY TRANSIT DISTRICTS USED TO USE ELECTROMECHANICAL TECHNOLOGY HE SAID BUT HARMON HAS BEEN USING MICROPROCESSORBASED TECHNOLOGY WHICH IS BECOMING MORE WIDELY USED ANOTHER AREA FOR POTENTIAL GROWTH FOR HARMON MR FOUDREE SAID IS IN INTERNATIONAL SALES WHICH HE BELIEVES SOON WILL ACCOUNT FOR GREATER THAN 5 OF SALES HE SAID HARMON IS PURSUING PARTNERSHIPS WITH OVERSEAS COMPANIES OPERATING IN AREAS THAT MEET AMERICAN ASSOCIATION OF RAILROADS STANDARDS ON FUEL TRAIN AND TRACK WEIGHTS INCLUDING ALL OF THE WESTERN HEMISPHERE CHINA INDIA AND AUSTRALIA AMONG SUCH PLACES HE MENTIONED AS A FAVORABLE DEVELOPMENT THE INCREASING PRIVATIZATION OF RAILROADS IN SUCH COUNTRIES AS VENEZUELA PERU AND ARGENTINA WHEREVER RAILROADS ARE INTERESTED IN INCREASING SAFETY AND PRODUCTIVITY HARMON HAS PRODUCTS TO MEET THOSE NEEDS HE SAID 9312230097 931223 REGULATORY CHOKEHOLD NEW YEAR'S PAY RULE IS MILLIONDOLLAR MISTAKE BY ERIC SCOONES SOME TIME IN THE NEW YEAR ACCOUNTANTS AT TRIBUNE CO OWNER OF MEDIA PROPERTIES AROUND THE COUNTRY AND OF THE CHICAGO CUBS BASEBALL TEAM WILL BE CONFRONTED WITH A REMARKABLE SITUATION AS A RESULT OF THE ILLCONCEIVED LAW KNOWN AS THE 1 MILLION CAP TRIBUNE CO WILL NOT BE ABLE TO DEDUCT THE FULL PAY OF ITS CEO IF IT EXCEEDS 1 MILLION BUT IT CAN DEDUCT THE ALMOST 7 MILLION THAT THE CUBS WILL PAY SECOND BASEMAN RYNE SANDBERG THIS EXAMPLE IS ONLY ONE OF MANY THAT POINT OUT THE FUNDAMENTAL FOLLY OF THE MILLIONDOLLAR CAP ON THE DEDUCTIBILITY OF EXECUTIVE PAY THE CAP IS A BYPRODUCT OF THAT GREATER FOLLY CHARACTERIZED BY SOME AS CLASS WARFARE THROUGH TAXATION LAST SUMMER'S BUDGET ACT JUST THIS MONTH THE INTERNAL REVENUE SERVICE ISSUED A SET OF COMPLIANCE GUIDELINES FOR THE CAP THEY REPRESENT A REMARKABLE EFFORT TO RATIONALIZE AN IRRATIONAL LAW BUT THEY CANNOT UNDO MANY OF THE MOST INEQUITABLE AND EXPENSIVE ASPECTS OF THE LIMIT AND EVEN THE IRS REGULATIONS NOW MUST PASS THROUGH A 60DAY COMMENT PERIOD AND PERHAPS PUBLIC HEARINGS THAT MAY AGAIN GIVE THE LAW'S SUPPORTERS A CHANCE TO LAUNCH A NEW ROUND OF COMPENSATION POPULISM UNDER THE LAW CONGRESS MADE IT MORE EXPENSIVE FOR COMPANIES TO COMPETE FOR THE NATION'S BEST EXECUTIVES WHEN COMPANIES CHOOSE TO PAY EXECUTIVES MORE THAN 1 MILLION THEY FACE A HEAVIER TAX BURDEN ON THE PORTION OF EXECUTIVES' PAY THAT EXCEEDS THE MILLION FIGURE THE LAW IS PARTICULARLY UNJUST BECAUSE IT DOES NOT APPLY TO EVERYONE CONGRESS SET UP THE CAP RULE SO THAT IT AFFECTS ONLY THE TOP FIVE EXECUTIVE OFFICERS AT A COMPANY AND ONLY AT COMPANIES PUBLICLY TRADED IN THE US THE RESULT IS A TAX RULE THAT MAKES ILLOGICAL DISTINCTIONS AMONG COMPANIES CONSIDER FOR EXAMPLE THE UNFAIR ADVANTAGE GIVEN FOREIGN COMPANIES LIKE HUNDREDS OF OTHER FOREIGN ENTITIES WHOSE STOCK DOES NOT TRADE HERE SONY IS ENTITLED TO DEDUCT THE FULL PAY OF THE HEAD OF ITS USBASED SONY PICTURES ENTERTAINMENT UNIT PETER GUBER AT THE SAME TIME WALT DISNEY CO IS SUBJECT TO A LIMIT ON THE DEDUCTIBILITY OF CEO MICHAEL EISNER'S COMPENSATION THE INCONSISTENCY OF THE TRIBUNE EXAMPLE OF EXECUTIVE AND ATHLETE IS REPLICATED IN EVERY COMPANY THAT HAS EMPLOYEES MAKING MORE THAN ITS TOP FIVE EXECUTIVES FOR EXAMPLE MULTIMILLIONDOLLAR PAY PACKAGES FOR TOP INVESTMENT BANKERS AT MERRILL LYNCH LIKE THOSE AT EVERY WALL STREET HOUSE WILL BE FULLY DEDUCTIBLE TO THE COMPANY BECAUSE THOSE BANKERS ARE NOT AMONG THE TOP FIVE OFFICERS BUT CEO DANIEL TULLY'S COMPENSATION WILL BE SUBJECT TO THE MILLIONDOLLAR CEILING EVEN THOUGH HE IS RESPONSIBLE FOR GUIDING THE FINANCIAL SERVICE GIANT POLITICIANS SUPPORTED THE NEW LIMITATION ON THE GROUND THAT TAXPAYERS SHOULD NOT SUBSIDIZE HIGH EXECUTIVE PAY PACKAGES USING THIS LOGIC WHY DOES IT NOW MAKE SENSE FOR TAXPAYERS TO SUBSIDIZE THE PAY OF FOREIGN COMPANY EMPLOYEES SPORTS FIGURES OR WALL STREET TRADERS BROKERS AND BANKERS OF COURSE THE SUBSIDY ARGUMENT IS WRONG IN ANY EVENT TAKING A TAX DEDUCTION FOR EXECUTIVE COMPENSATION IS NO MORE A SUBSIDY THAN IS DEDUCTING ANY OTHER COSTS OF DOING BUSINESS WHAT'S MORE THE GOVERNMENT ACTUALLY MAKES MONEY ON EXECUTIVE PAY IT POCKETS THE DIFFERENCE BETWEEN THE DEDUCTIONS TAKEN BY COMPANIES VALUED AT THEIR CORPORATE TAX RATE AND THE TAXES PAID BY EXECUTIVES ON THEIR PAY AT THE HIGHER RATE IN FACT THE SUBJECT OF EXECUTIVE PAY IS SIMPLY TOO COMPLEX TO BE RESOLVED BY GOVERNMENT REGULATION UNDERSTANDING THE ISSUE REQUIRES TAKING INTO CONSIDERATION COMPANY SIZE DEVELOPMENT STAGE INDUSTRY AND PERFORMANCE IN THE PAST WHEN THE GOVERNMENT HAS USED TAX REGULATIONS TO ENFORCE SOCIAL POLICY IN THE COMPENSATION AND BENEFITS AREA THE ATTEMPT HAS BACKFIRED FOR EXAMPLE AN EXCISE TAX ON GOLDEN PARACHUTE PAYMENTS TURNED WHAT CONGRESS INTENDED TO BE THE MAXIMUM LEVEL OF BENEFITS INTO THE STANDARD LEVEL OF PAYMENT TODAY AND THE GOVERNMENT'S HYPERDETAILED AND CONTINUALLY CHANGING REGULATION OF PENSION BENEFITS IS OFTEN CITED AS A REASON FOR THE DECLINE IN COMPANYSPONSORED PENSION PLANS AS IRRATIONAL AS THE NEW LIMITATION IS PUBLIC COMPANIES MUST NOW LIVE WITH IT THUS THE MULTIMILLIONDOLLAR SALARY OF A PRIVATELY HELD SILICON VALLEY SOFTWARE COMPANY CEO IS FULLY DEDUCTIBLE ONE DAY BUT LIMITED THE NEXT DAY WHEN THE COMPANY GOES PUBLIC AND BECAUSE THE NEW LIMIT POTENTIALLY APPLIES TO ALL TAXABLE INCOME DURING A YEAR INCLUDING SALARIES BONUSES AND STOCK OPTION EXERCISES EVEN COMPANIES PAYING TOP EXECUTIVES CONSIDERABLY BELOW 1 MILLION IN CASH COMPENSATION ANNUALLY MUST BE CONCERNED NO ONE EXCEPT THOSE COMPLETELY OUT OF TOUCH WITH THE MARKETPLACE CAN ARGUE THAT THE WORLD'S PROBLEMS ARE SOLVED BY SIMPLY CAPPING EXECUTIVE PAY AT 1 MILLION A YEAR ALL THIS TARGETING OF OFFICERS OF PUBLIC COMPANIES DOES IS REINFORCE FALSE AND OUTDATED NOTIONS NOTIONS FROM THE ERA OF THE ROBBER BARONS THAT AMERICA IS MADE UP OF EVIL PLUTOCRATS AND THEIR VICTIMS THE BILL'S EARLY SUPPORTERS DID REALIZE THAT A FLAT 1 MILLION CAP ON THE DEDUCTIBILITY OF PAY IN ALL CASES WAS BAD POLICY AS A RESULT THE CAP DOES NOT ALWAYS APPLY TO PERFORMANCEBASED COMPENSATION SUCH AS BONUSES OR AWARDS OF STOCK OPTIONS WHILE A MILLION DOLLARS STILL LOOKS LIKE A LOT OF MONEY EVEN POLITICIANS COULD AGREE THAT EFFECTIVE EXECUTIVES ARE WORTH THAT MUCH AND MORE THE IRS HAS DONE WHAT IT CAN TO REMOVE OBSTACLES FROM THIS ROUTE ON BONUS PLANS FOR EXAMPLE IT HAS GIVEN COMPANY COMPENSATION COMMITTEES AND BOARDS SOME LEEWAY ON HOW AN ANNUAL BONUS PLAN WILL WORK UNFORTUNATELY THOUGH THERE ARE STILL FAR TOO MANY STONES IN THE ROAD THUS TO AVOID LOSING THE DEDUCTION ON AN EXECUTIVE'S PAY WHEN A BONUS BRINGS HIS SALARY TO A FIGURE EXCEEDING A MILLION DOLLARS A COMPANY MUST UNDERTAKE THE EXPENSE OF GETTING SHAREHOLDER APPROVAL THROUGH THE SOMETIMES DIFFICULT PROXY SOLICITATION PROCESS IT MUST ALSO DEVELOP A FORMULAIC PLAN FOR COMPENSATION WHERE IN MANY CASES NO FORMULA CAN WORK THE RESULT IS THAT A COMPANY LIKE TRIBUNE CO STILL FACES CONSIDERABLE TROUBLE IF IT CHOOSES TO PAY ITS TOP EXECUTIVES COMPETITIVELY SONY BMW AND BURGER KING OWNED BY A BRITISH PARENT STILL RETAIN THEIR ADVANTAGE AS FOREIGNERS SO DO COMPANIES THAT CHOOSE TO REMAIN PRIVATE BECAUSE IT DISCOURAGES COMPANIES TO GO PUBLIC THE LAW DISCOURAGES GROWTH IN THE VERY KINDS OF COMPANIES WE WANT TO SEE GROW THE MOST INNOVATORS WE MUST HOPE THAT CONGRESS DOES NOT SEE THE NEW LIMITS AS MERELY AN INITIAL STEP INTO GOVERNMENTAL REGULATION OF PAY LEVELS IN PRIVATE ENTERPRISE AT A TIME WHEN THE REST OF THE WORLD HAS RUSHED TO EMBRACE FREE ENTERPRISE THE IMAGE OF BIG BROTHER DICTATING US PAY IS IRONIC AS WELL AS MISGUIDED MR SCOONES IS AN EXPERT IN EXECUTIVE COMPENSATION AT WILLIAM M MERCER INC A NEW YORKBASED HUMAN RESOURCES CONSULTING FIRM 9312230096 931223 LETTERS TO THE EDITOR BULGARIA IS LOOKING FOR NEW SUGAR DADDY I AGREE WITH JONATHAN EYAL'S PLEA FOR INCREASED WESTERN ASSISTANCE TO BULGARIA IS THE EC A FREE TRADER JUST ASK BULGARIA EDITORIAL PAGE NOV 30 HOWEVER HAVING JUST RETURNED FROM SERVING AS AN ADVISER TO ONE OF THE MANY BULGARIAN GOVERNMENTAL AUTHORITIES TRYING TO PRIVATIZE THE STATE SECTOR I CANNOT AGREE WITH THE SENTIMENTS OR ANALYSIS BEHIND HIS CONCLUSION BULGARIA HAS BEEN TOO WILLING TO BLAME OTHERS FOR ITS PROBLEMS RATHER THAN FOCUS ON THE MANY INTERNAL STEPS IT MIGHT TAKE TO ADVANCE ITS ECONOMY PRIVATIZATION EFFORTS HAVE BEEN HAPHAZARD REFORM OF THE BANKING SYSTEM HAS MOVED GLACIALLY AND THE ABSENCE OF A BANKRUPTCY LAW COMPLICATES THE PROSPECTS FOR THIS CRITICAL SECTOR THE BUDGET DEFICIT AND INFLATION REMAIN FAR TOO HIGH ALL OF THESE ARE PRODUCTS OF THE GRADUAL APPROACH TO REFORM TAKEN BY SUCCESSIVE BULGAR GOVERNMENTS MR EYAL IS ACCURATE IN POINTING OUT THE PROWESTERN STANCE TAKEN BY PRESIDENT ZHELEV HOWEVER IT SHOULD NOT BE SURPRISING THAT THE MOTIVES FOR THIS POSITION ARE SELFISH MANY BULGARIANS ARE SEARCHING FOR A BENEFACTOR TO REPLACE THE SOVIET UNION AND HAVE IDENTIFIED THE US AS THE MOST LIKELY CANDIDATE WHILE CONSISTENT WITH THE COUNTRY'S LONG HISTORY OF PASSIVITY TOWARD INVADERS THIS APPROACH IS NOT A FIRM FOUNDATION ON WHICH THE WEST CAN OR SHOULD BUILD A CLOSER RELATIONSHIP WITH BULGARIA BULGARIA NEEDS TO HAVE ITS FEET HELD CLOSER TO THE FIRE MANY BULGARIANS WITH WHOM I HAVE SPOKEN RECOGNIZE THAT THEIR COUNTRY DOES NOT HAVE THE POLITICAL WILL AT PRESENT TO MAKE THE NECESSARY PAINFUL CHOICES ANY FURTHER WESTERN ASSISTANCE SHOULD BE CONDITIONED ON CONCRETE PROGRESS TOWARD A QUICK AND SUSTAINABLE TRANSITION TO A MARKET ECONOMY ONLY THEN WILL BULGARIA STAND A CHANCE OF BECOMING A TRUE SUCCESS STORY IN THE BALKANS 9312230095 931223 LEGAL BEAT MORE MINORITIES WOMEN NAMED TO US COURTS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS BEGINNING TO CHANGE THE FACE OF THE FEDERAL JUDICIARY CONSIDER MARTHA CRAIG DAUGHTREY NAMED TO THE FEDERAL APPEALS COURT IN CINCINNATI SHE IS HIS QUINTESSENTIAL JUDICIAL APPOINTEE SHE WAS THE FIRST WOMAN TO BE A FEDERAL PROSECUTOR IN TENNESSEE AS WELL AS THE STATE'S FIRST WOMAN JUDGE AND SHE TAUGHT LAW AT VANDERBILT UNIVERSITY AFTER 12 YEARS IN WHICH HIS REPUBLICAN PREDECESSORS FILLED THE BENCH LARGELY WITH WHITE MALE CONSERVATIVES PRESIDENT CLINTON IS APPOINTING MORE WOMEN AS WELL AS MORE MINORITYGROUP MEMBERS AND MORE SITTING JUDGES TO FEDERAL COURTS AND THE AMERICAN BAR ASSOCIATION AMONG OTHERS SAYS HE IS DOING IT WITHOUT SACRIFICING QUALITY THE PRESIDENT AND HIS WIFE HILLARY RODHAM CLINTON BOTH ATTORNEYS HAVE BEEN PERSONALLY INVOLVED IN THE CULLING PROCESS BECAUSE OF CONTINUING RETIREMENTS THE PRESIDENT WHO INHERITED 100 VACANCIES FROM GEORGE BUSH NOW HAS 113 VACANCIES OUT OF 846 JUDGESHIPS THOUGH SLOW TO START THE JUDICIALAPPOINTMENT MACHINERY THE CLINTON ADMINISTRATION PRODUCED ABOUT A DOZEN NAMES A MONTH FROM AUGUST THROUGH THE THANKSGIVING CONGRESSIONAL RECESS IN ALL THEY HAVE NOMINATED 47 PEOPLE TO THE BENCH 27 OF THEM HAVE BEEN CONFIRMED BY THE SENATE MORE THAN A THIRD OF MR CLINTON'S NOMINEES ARE WOMEN AND 28 ARE BLACK OR HISPANIC BY COMPARISON ABOUT ONEFIFTH OF MR BUSH'S JUDICIAL APPOINTMENTS WERE WOMEN AND 11 WERE MINORITIES RONALD REAGAN'S SELECTIONS WERE EVEN MORE DISTINCTLY WHITE NEARLY 94 AND MALE ONLY ABOUT 8 OF HIS APPOINTEES WERE WOMEN AMONG THOSE PERSONIFYING THE TREND ARE JUDITH ROGERS THE AFRICANAMERICAN CHIEF JUDGE OF WASHINGTON DC'S HIGHEST LOCAL COURT WHO HAS BEEN NOMINATED TO THE FEDERAL APPEALS COURT IN THE CAPITAL AND MARTHA VAZQUEZ A CRIMINALDEFENSE LAWYER IN SANTA FE NM NAMED TO THE FEDERAL DISTRICT COURT IN THAT STATE THERE IS A HIGH DEGREE OF DIVERSITY AMONG THE CLINTON APPOINTEES AND ALSO APPARENTLY VERY HIGH QUALIFICATIONS AN IMPRESSIVE GROUP SAYS WILLIAM SCHWARZER DIRECTOR OF THE FEDERAL JUDICIAL CENTER THE RESEARCH AND EDUCATION ARM OF THE US COURTS MR SCHWARZER A FORMER FEDERAL JUDGE COUNTS AS A BIG PLUS THE ADMINISTRATION'S CHOICE OF SO MANY PEOPLE WITH JUDICIAL EXPERIENCE MORE THAN HALF OF MR CLINTON'S NOMINEES ARE STATE JUDGES OR FEDERAL MAGISTRATES APPOINTED BY THE FEDERAL COURTS TO ASSIST US JUDGES ONLY 34 ARE DIRECTLY FROM LAW FIRMS COMPARED WITH NEARLY 42 IN THE TWO PRIOR ADMINISTRATIONS ALTHOUGH MANY HAVE PRACTICED PRIVATELY ONE REASON FOR FAVORING SITTING JUDGES IS THAT THEY HAVE PUBLIC RECORDS PROVING THEIR LEGAL ACUMEN AND POSSIBLY THEIR VIEWS ON SENSITIVE ISSUES SUCH AS ABORTION CLINTON AIDES SAY THEY AREN'T USING ANY LITMUS TESTS INDEED THEY ARE CONSIDERING AT LEAST THREE POTENTIAL NOMINEES WHO ARE SAID TO OPPOSE ABORTION MR CLINTON'S NOMINEES GENERALLY ARE LIBERAL AND SOME HAVE DRAWN ATTACKS FROM CONSERVATIVES LIKE SEN ORRIN HATCH OF UTAH RANKING REPUBLICAN ON THE SENATE JUDICIARY COMMITTEE WHICH CONSIDERS JUDICIAL NOMINATIONS THE ADMINISTRATION'S FIRST CONFIRMATION FIGHT OVER A JUDGE IS LIKELY TO COME EARLY NEXT YEAR OVER THE NOMINATION OF CHIEF JUSTICE ROSEMARY BARKETT OF THE FLORIDA SUPREME COURT TO THE FEDERAL APPEALS COURT IN ATLANTA MR HATCH CALLS SOME OF JUDGE BARKETT'S OPINIONS AND VOTES REVERSING DEATH SENTENCES PATHETIC BUT HE DOESN'T CHALLENGE HER PROFESSIONAL QUALIFICATIONS LIKE THREEQUARTERS OF THE CLINTON NOMINEES JUDGE BARKETT RECEIVED THE ABA'S HIGHEST RATING OF WELL QUALIFIED FOR THE FEDERAL BENCH MR HATCH PREVIOUSLY OBJECTED ON IDEOLOGICAL GROUNDS TO THE ELEVATION OF JUDGE DAUGHTREY FROM THE TENNESSEE SUPREME COURT TO THE CINCINNATI FEDERAL APPEALS COURT BUT AT AN OCTOBER HEARING JUDGE DAUGHTREY RESPONDED FORCEFULLY TO HIS SUGGESTIONS SHE WAS SOFT ON CRIMINALS AT THE END OF THE HEARING THE UTAH REPUBLICAN ADMITTED I'M VERY IMPRESSED AND THE NOMINATION WAS APPROVED IT DIDN'T HURT THAT JUDGE DAUGHTREY IS ALSO AN OLD FRIEND OF VICE PRESIDENT AL GORE'S AMONG OTHER EARLY JUDICIAL NOMINEES WERE CLINTON FRIENDS RICHARD STEARNS A MASSACHUSETTS JUDGE WHO ALSO WAS CONSIDERED TO HEAD THE FEDERAL BUREAU OF INVESTIGATION AND NANCY GERTNER A PROMINENT BOSTON LITIGATOR WHO TAUGHT AT HARVARD MR REAGAN APPOINTED ONLY 16 LAW PROFESSORS IN EIGHT YEARS BUT IS REMEMBERED FOR PUTTING ON THE BENCH SUCH LEADING CONSERVATIVE THINKERS AS RICHARD POSNER AND FRANK EASTERBROOK BOTH ON THE US APPEALS COURT IN CHICAGO THE ONLY FULLTIME ACADEMIC ON THE CLINTON ROSTER IS DAVID TRAGER THE DEAN OF BROOKLYN LAW SCHOOL WHO IS MOVING TO THE FEDERAL DISTRICT COURT IN THAT NEW YORK CITY BOROUGH CLINTON AIDES HAVE TOYED WITH THE IDEA OF PUTTING LIBERAL THEORISTS LIKE LAURENCE TRIBE HARVARD CONSTITUTIONAL LAW PROFESSOR ON THE BENCH BUT THEY WORRY MR TRIBE'S NOMINATION WOULD PROVOKE A VICIOUS FIGHT IN THE SENATE WHERE REPUBLICANS RECALL HIS ROLE IN HELPING TO DEFEAT ROBERT BORK'S 1987 SUPREME COURT NOMINATION MORE LIKELY WOULD BE THE APPOINTMENT OF GEOFFREY STONE A LESS PARTISAN CONSTITUTIONAL SCHOLAR AT THE UNIVERSITY OF CHICAGO TO JOIN JUDGES POSNER AND EASTERBOOK ON THE COURT IN THAT CITY A FEDERAL JUDGE IN NEW YORK DISMISSED THE BULK OF RACKETEERING CLAIMS FILED BY INVESTORS IN A GROUP OF REALESTATE PARTNERSHIPS SYNDICATED BY INTEGRATED RESOURCES INC US DISTRICT JUDGE ROBERT M SWEET SAID THE INVESTORS IN SEVERAL PARTNERSHIPS COULDN'T PROCEED ON CLAIMS THAT THE GENERAL PARTNERS VIOLATED THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW HE SAID THEIR CLAIMS WERE FILED TOO LATE OR MADE INSUFFICIENT ALLEGATIONS AGAINST THE GENERAL PARTNERS LAWSUITS BROUGHT BY INVESTORS IN 13 OTHER PARTNERSHIPS WERE DISMISSED FOR SIMILAR REASONS IN JANUARY IN GENERAL THE PLAINTIFFS ALLEGE THE INVESTMENTS HAD NO PROSPECTS FOR SUCCESS FROM THEIR INCEPTION AND WERE DESIGNED MERELY TO ENRICH THE DEFENDANTS WITH PROFITS FROM SALES PROCEEDS FEES AND OTHER COMMISSIONS THE JUDGE WHO WAS APPOINTED BY THE FEDERAL JUDICIARY'S MULTIDISTRICT LITIGATION PANEL TO HANDLE ALL LAWSUITS BROUGHT BY INVESTORS IN THE SYNDICATES DID ALLOW CERTAIN PLAINTIFFS WHOSE CLAIMS WERE FILED ON TIME TO PROCEED THE INVESTORS ARE SEEKING MILLIONS OF DOLLARS IN DAMAGES INTEGRATED A NATIONAL SYNDICATOR OF REALESTATE PARTNERSHIPS THAT FILED FOR BANKRUPTCYCOURT PROTECTION IN 1990 WASN'T AMONG THOSE SUED 9312230093 931223 CALIFORNIA HOME SALES RISE LOS ANGELES CALIFORNIA HOME SALES WERE 476770 IN NOVEMBER A 27 GAIN FROM OCTOBER THE CALIFORNIA ASSOCIATION OF REALTORS SAID THE NOVEMBER FIGURE IS THE HIGHEST SINCE DECEMBER 1992 THE ASSOCIATION ATTRIBUTED THE RESULTS WHICH ARE SEASONALLY ADJUSTED AND PRESENTED ON AN ANNUALIZED BASIS TO LOW MORTGAGE INTEREST RATES FAVORABLE PRICES INCREASED CONSUMER CONFIDENCE AND A LOWER UNEMPLOYMENT RATE IN CALIFORNIA 9312230092 931223 LETTERS TO THE EDITOR NUCLEAR PLANT GROUNDS IT'S A JUNGLE OUT THERE YOUR DEC 2 ARTICLE ABOUT FUELING POWER PLANTS WITH WOOD STATED THAT WOOD BURNING IS THE LEADING RENEWABLE ENERGY ALTERNATIVE TO SCARY NUCLEAR PLANTS YES I MUST AGREE THOSE NUCLEAR PLANTS ARE SCARY WHILE WALKING TO THE TRAINING CENTER AT THE NUCLEAR PLANT WHERE I WORK I RECENTLY BECAME VERY SCARED WHEN A DEER ALMOST RAN ME OVER IN THE SPRING IT CAN BECOME SCARY IF YOU GET TOO CLOSE TO THE MANY CANADIAN GEESE THAT FREQUENT THE PLANT SITE THEY TEND TO PROTECT THEIR YOUNGSTERS WITH A VENGEANCE I ALSO GET SCARED THAT A CAR TIRE MIGHT COME IN CONTACT WITH A WOODCHUCK MEANDERING ALONG THE PLANT ACCESS ROAD THE ARTICLE CORRECTLY STATED THAT SOME NUCLEAR PLANTS HAVE BEEN CLOSED BUT THE CLOSURES REPRESENT ONLY A SMALL FRACTION OF THE TOTAL INSTALLED CAPACITY IN FACT THE LARGER PLANTS ARE STARTING TO LOOK AT WAYS TO EXTEND THEIR 40YEAR LIVES BECAUSE THEY PROVIDE SAFE AND ECONOMICAL ELECTRICITY WITH VIRTUALLY NO IMPACT ON THE ENVIRONMENT WHEN COMPARED WITH COMBUSTION 9312230091 931223 RETAILING WALMART STOPS HANDGUN SALES INSIDE ITS STORES BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL WALMART STORES INC SAID IT DECIDED TO STOP SELLING HANDGUNS IN ITS STORES THOUGH IT WILL CONTINUE SELLING SHOTGUNS AND RIFLES IN STORES AND HANDGUNS BY CATALOG THE BENTONVILLE ARK DISCOUNT RETAILER SAID THAT IT MADE THE DECISION IN AUGUST AND THAT THE MOVE STEMS FROM CUSTOMER OBJECTIONS TO SHOPPING IN PLACES THAT SELL HANDGUNS BUT THE DECISION BY THE NATION'S LARGEST RETAILER CAME TO LIGHT JUST FIVE DAYS AFTER A MAN KILLED TWO PEOPLE AND WOUNDED THREE OTHERS IN A WALMART PARKING LOT IN HUGO OKLA USING AN ASSAULT RIFLE HE BOUGHT AT A PAWN SHOP ALSO LAST WEEK THE RETAILER WAS SUED IN HOUSTON FEDERAL COURT BY THE FAMILY OF A COUPLE SLAIN BY THEIR SCHIZOPHRENIC SON WHO ALLEGEDLY USED A 38 CALIBER HANDGUN BOUGHT AT A WALMART STORE IN OCTOBER KMART CORP WAS ORDERED TO PAY MORE THAN 11 MILLION TO A WOMAN WHO WAS LEFT A QUADRIPLEGIC AFTER HER FORMER BOYFRIEND SHOT HER WITH A RIFLE THAT HE BOUGHT AT A KMART STORE WALMART'S MOVE COINCIDES WITH THE RECENT HEIGHTENING OF THE NATION'S LONGRUNNING DEBATE OVER GUNS AND VIOLENCE THE CONTROVERSY HAS BEEN FUELED BY A SPATE OF MULTIPLE SHOOTINGS AND THE PASSAGE OF THE BRADY BILL WHICH MANDATES A FIVEDAY WAITING PERIOD FOR HANDGUN PURCHASES I SUSPECT THAT THE POLITICAL PRESSURE OUTWEIGHED WHATEVER MONEY THEY MADE SELLING HANDGUNS SAID JOSEPH MURRAY PRESIDENT OF ELLETT BROTHERS INC A GUN DISTRIBUTOR BASED IN CHAPIN SC WALMART HOWEVER SAID ITS CHANGE OF HEART ABOUT HANDGUNS DIDN'T STEM FROM POLITICS OR FROM CONCERNS ABOUT LEGAL LIABILITY FOR SHOOTINGS RATHER A SPOKESMAN SAID IT ORIGINATED WITH THE REGULAR WEEKLY DISCUSSIONS THAT BENTONVILLEBASED MANAGERS FROM EVERY DEPARTMENT CONDUCT ON AN INFORMAL BASIS WITH CUSTOMERS AT STORES THEY VISIT AROUND THE COUNTRY WITHOUT BEING SPECIFICALLY ASKED ABOUT HANDGUNS CUSTOMERS INCREASINGLY RAISED THE ISSUE A MAJORITY OF OUR CUSTOMERS TELL US THEY WOULD PREFER NOT TO SHOP IN A RETAIL STORE THAT SELLS HANDGUNS SAID DON SHINKLE THE SPOKESMAN DISCOUNT RETAILERS SUCH AS WALMART WHICH GREW LARGELY FROM RURAL ROOTS HAVE LONG BEEN MAJOR PURVEYORS OF GUNS TO THE HUNTING CROWD MR SHINKLE WOULDN'T PROVIDE GUN SALES FIGURES BUT A NATIONAL SPORTING GOODS ASSOCIATION CONSUMER SURVEY LAST YEAR CONCLUDED THAT DISCOUNTERS ACCOUNTED FOR 4 OR 26 MILLION OF THE 651 MILLION ANNUAL HANDGUN MARKET AND 17 OR 1566 MILLION OF THE 921 MILLION OF SHOTGUNS AND RIFLES PURCHASED WALMART WOULD HAVE A HEALTHY SHARE OF THOSE SALES BECAUSE IT SELLS GUNS AT NEARLY 700 OF ITS 1994 STORES AND AT AN UNSPECIFIED NUMBER OF ITS 350 SAM'S CLUB DISCOUNT WAREHOUSE OUTLETS WALMART'S DECISION WHICH GOES INTO EFFECT FEB 1 MAKES IT ONE OF THE LAST BIG RETAILERS TO STOP SELLING HANDGUNS KMART WHICH CONTINUES TO CARRY RIFLES AND SHOTGUNS IN ITS SPORTINGGOODS DEPARTMENTS STOPPED SELLING HANDGUNS IN 1974 HANDGUNS DO NOT FIT IN OUR MERCHANDISE MIX A KMART SPOKESWOMAN SAID MONTGOMERY WARD & CO HALTED HANDGUN SALES IN 1981 BECAUSE OF LIABILITY CONCERNS WE JUST LOOKED AT IT AND SAID WE DON'T REALLY WANT TO BE IN THIS BUSINESS BECAUSE THE POTENTIAL FOR PROBLEMS WAS SIGNIFICANT A SPOKESWOMAN SAID THE CHICAGOBASED RETAILER PHASED OUT ALL GUN SALES IN 1986 WHEN IT ELIMINATED ITS SPORTINGGOODS DEPARTMENTS SEARS ROEBUCK & CO STOPPED SELLING HANDGUNS IN 1963 AND ALL OTHER FIREARMS IN THE EARLY 1980S THE RETAILER SAID IT GOT OUT OF THE GUN BUSINESS BECAUSE OF THE INCREASING AMOUNT OF PAPERWORK REQUIRED BY VARIOUS REGULATIONS MANY OF WHICH VARIED FROM COMMUNITY TO COMMUNITY IT BECAME AN ADMINISTRATIVE BURDEN A SEARS SPOKESMAN SAID WALMART'S WITHDRAWAL FROM THE HANDGUN MARKET WILL PLEASE INDEPENDENT GUN SHOPS WHICH DOMINATE THE GUNRETAILING INDUSTRY BUT HAVE SEEN THEIR PROFIT MARGINS SQUEEZED BY WALMART'S DISCOUNT PRICES THE GUNSHOP RETAILERS HATE THE DISCOUNT MARTS SAID CAMERON HOPKINS EDITOR OF SHOOTING INDUSTRY MAGAZINE WHILE WALMART DENIED THAT THE LIABILITY ISSUES AFFECTED ITS DECISIONS RETAILERS ARE INCREASINGLY BEING DRAGGED INTO COURT OVER SHOOTINGS IN THE KMART VERDICT A FLORIDA JURY RULED IN FAVOR OF A MICHIGAN WOMAN WHO WAS SHOT BY HER FORMER BOYFRIEND WITH A 22 CALIBER RIFLE THAT HE BOUGHT AT A KMART STORE DESPITE BEING VISIBLY DRUNK KMART HAS APPEALED THE RULING ARGUING THAT THE WOMAN WAS SHOT WITH A DIFFERENT GUN IN THE SUIT FILED LAST WEEK IN HOUSTON PLAINTIFFS ALLEGED THAT THE MAN WHO SHOT HIS PARENTS WITH A GUN PURCHASED AT A WALMART STORE IN ALVIN TEXAS INITIALLY INDICATED ON A FEDERAL REPORTING FORM THAT HE HAD BEEN TREATED FOR MENTAL ILLNESS BUT WHEN HE ASKED THE CLERK WHAT WOULD HAPPEN IF HE GAVE A YES ANSWER TO THE QUESTION THE CLERK ALLEGEDLY TOLD HIM THE HANDGUN COULDN'T BE SOLD TO HIM HE CHANGED THE ANSWER AND BOUGHT THE GUN EVERYTHING WE DID WAS CORRECT RIGHT AND WITHIN THE LAW AND WE'LL DEMONSTRATE THAT WHEN THIS REACHES THE COURT SAID WALMART'S MR SHINKLE GUNCONTROL ADVOCATES PRAISED WALMART'S DECISION RICHARD ABORN PRESIDENT OF HANDGUN CONTROL INC A NONPROFIT LOBBYING GROUP BASED IN WASHINGTON SAID WE THINK IT'S A VERY POSITIVE STEP WALMART IS RECOGNIZING THAT THERE IS A CERTAIN LEVEL OF DISGUST IN THE COUNTRY ABOUT HANDGUNS MR SHINKLE ACKNOWLEDGED THAT THE MOOD OF THE COUNTRY HAS CHANGED AND IS CHANGING 9312230090 931223 PEPPERAND SALT TO READ THEM TO WEED THEM ONE MORE CROSSWORD PUZZLE UNCERTAINTY BLAME AMPLY DEMONSTRATED UNTIL NOMINATED 9312230089 931223 COGNOS REPORTS PROFIT FOR QUARTER SEES FUTURE GROWTH BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA COGNOS INC REPORTED NET INCOME OF 674000 CANADIAN DOLLARS US501186 FOR ITS FISCAL THIRD QUARTER AND ITS CHIEF EXECUTIVE SEES STRONG FUTURE EARNINGS AS THE SOFTWARE MAKER TRIMS COSTS AND SHIFTS ITS PRODUCT LINE THE RESULTS REVERSED A YEAREARLIER LOSS OF C69 MILLION FOR THE QUARTER ENDED NOV 30 REVENUE WAS UP SLIGHTLY TO C378 MILLION FROM A YEAREARLIER C376 MILLION FOR THE NINE MONTHS COGNOS HAD EARNINGS OF C17 MILLION OR 13 CANADIAN CENTS 97 US CENTS A SHARE AFTER RESTRUCTURING CHARGES OF C15 MILLION FOR THE YEAREARLIER NINE MONTHS THE SOFTWARE COMPANY HAD A LOSS OF C8 MILLION OR 63 CANADIAN CENTS A SHARE AFTER RESTRUCTURING CHARGES OF C31 MILLION COGNOS A MAJOR CANADIAN INDEPENDENT SOFTWARE DEVELOPER HAS RECORDED BIG LOSSES FOR TWO OF THE PAST FIVE YEARS BUT FOR FOUR CONSECUTIVE QUARTERS THE COMPANY HAS BEEN IN THE BLACK AND ITS CHAIRMAN AND CHIEF EXECUTIVE MICHAEL POTTER SAID THE TREND LINE THAT WE HAVE ESTABLISHED IS GOING TO CONTINUE WE AREN'T GOING TO SWING WILDLY AROUND ON TUESDAY AFTER RESULTS WERE POSTED COGNOS CLOSED AT A 52WEEK HIGH OF US1075 IN TRADING ON THE NASDAQ STOCK MARKET UP 375 CENTS THE STOCK CLOSED YESTERDAY UNCHANGED ACCORDING TO MR POTTER COGNOS'S PRODUCT MIX IS GRADUALLY SHIFTING TO SOFTWARE FOR THE FASTGROWING DESKTOPCOMPUTER MARKET THE MATURE PART OF THE BUSINESS WHICH NOW HAS LIMITED GROWTH PROSPECTS IS SOFTWARE FOR LARGER MIDRANGE COMPUTERS GRADUALLY AS THE PRODUCT MIX CHANGES YOU'LL SEE US MOVE INTO SINGLE THEN DOUBLEDIGIT GROWTH OVER THE NEXT FEW QUARTERS MR POTTER SAID HE SAID COGNOS'S NEW AXIANT SOFTWARE USED TO DESIGN CUSTOM DATABASES HAS BEEN WELL RECEIVED BUT WON'T GENERATE REVENUE UNTIL LATE NEXT SUMMER OR FALL MR POTTER SAID THE COMPANY'S MANAGEMENT HEADED BY RON ZAMBONINI WHO BECAME PRESIDENT AND CHIEF OPERATING OFFICER ALMOST A YEAR AGO HAS ACHIEVED OVERALL OPERATINGCOST REDUCTIONS OF 14 FROM A YEAR AGO A KEY DRIVER OF WHICH HAS BEEN TO SHIFT OUR SALESCHANNEL MIX TOWARD THIRDPARTY DISTRIBUTORS AND TELESALES IN ITS THIRD QUARTER 40 OF THE COMPANY'S LICENSE SALES CAME FROM SUCH INDIRECT CHANNELS UP FROM A YEAREARLIER 35 FOR THE COMPANY'S NEXT FISCAL YEAR STARTING MARCH 1 1994 MR POTTER SAID ANALYSTS COULD RAISE A LITTLE BIT THEIR PERSHARE EARNINGS ESTIMATES ANALYSTS HAVE FORECAST PERSHARE EARNINGS FOR THAT PERIOD IN THE RANGE OF 45 CANADIAN CENTS TO 50 CANADIAN CENTS MR POTTER DIDN'T ESTIMATE FISCAL1994 RESULTS MEANWHILE MR POTTER DESCRIBED AS A CORPORATE HOUSEKEEPING MEASURE A SHAREHOLDERS' RIGHTS PLAN THAT HE SAID IS DESIGNED TO ENSURE FAIR TREATMENT IN THE CASE OF A BID FOR COGNOS HE ADDED THAT THE MOVE WASN'T PROMPTED BY INQUIRIES FROM PROSPECTIVE BIDDERS 9312230088 931223 US AUDIOPHILES SAY RUSSIAN STEREO UNIT SOUNDS PRETTY GOOD BUT ITS MAKER A DEFENSE FIRM HAS TROUBLE CAPITALIZING ON THE EXPORT MARKET BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL ST PETERSBURG RUSSIA OCEANPRIBOR IS THE RAREST OF RUSSIAN MANUFACTURERS IT MAKES A CONSUMER PRODUCT A STEREO AMPLIFIER THAT SOMEONE IN THE US WANTS TO BUY IT ISN'T MUCH TO LOOK AT JUST A PLAIN METAL BOX WITH SEVEN DIALS THAT'S ABOUT WHAT ONE WOULD EXPECT FROM A PIECE OF THE OLD SOVIET MILITARYINDUSTRIAL COMPLEX LIKE OCEANPRIBOR WHAT IS IMPORTANT THOUGH IS THAT THE AMPLIFIER SOUNDS GOOD AND IS RELATIVELY INEXPENSIVE IT'S A BRUTE SAYS WALTER SCHOFIELD A PRODUCT MANAGER FOR CAMBRIDGE SOUNDWORKS AN AUDIO CATALOG PARTOWNED BY HIFI GURU HENRY KLOSS IT BRINGS OUT THE BEST IN BASS HE SAYS BECAUSE IT HAS A LOT OF WHAT AUDIOPHILES CALL RESERVE POWER THE OOMPH NEEDED TO REPRODUCE BASS SO OCEANPRIBOR OHKEYONPREEBORE SHOULD BE A SUCCESS STORY BUT THE COMPANY HAS YET TO EXPORT ITS FIRST AMPLIFIER TO THE US TWO YEARS AGO KEITH JOHNSON A MASSACHUSETTS INSTITUTE OF TECHNOLOGY PROFESSOR WHO KNOWS A GOOD AMPLIFIER WHEN HE HEARS ONE BROUGHT CAMBRIDGE SOUNDWORKS AN OCEANPRIBOR STEREO SYSTEM AND MR SCHOFIELD AGREED TO LIST IT IN HIS CATALOG THAT SHOULD HAVE BEEN THE BEGINNING OF THE DEFENSE FACTORY'S SWITCH TO PEACEFUL PRODUCTION AND WESTERN CONSUMERS BUT IT DIDN'T TURN OUT THAT WAY FOR HOURS GALINA SOLGAN A TECHNICAL EXPERT IN OCEANPRIBOR'S FOREIGNSALES DEPARTMENT HAS LISTENED AS HER BOSS DIRECTOR GENERAL OLEG BELIAVSKY DRYLY RECITES IN RUSSIAN THE ENTERPRISE'S 60YEAR HISTORY SUDDENLY SHE ERUPTS IN RAPID FLUENT AND EMOTIONAL ENGLISH WE LOVE OUR MUSIC WE LOVE THE MUSICIANS OF OUR COUNTRY WE KNOW OUR CAPABILITIES SHE SAYS SOUNDING BROKENHEARTED WE ARE READY TO WORK HARD WE ARE READY TO CHANGE EVERYTHING WE HAVE HERE BUT WE HAVE NO RELIABLE FRIENDS NO RELIABLE CONTACTS TO HELP SELL AUDIO EQUIPMENT IN THE WEST SEVERAL FIRMS HAVE COME CALLING BUT THE OVERTURES SHE SAYS BITTERLY ARE ON THE LEVEL OF CONVERSATION ONLY OCEANPRIBOR ISN'T ONE OF THOSE ENTREPRENEURIAL ENTERPRISES THAT HAS SPRUNG UP IN THE POSTCOMMUNIST ERA ITS 10000 WORKERS WHO EARLIER THIS YEAR VOTED AGAINST PRIVATIZING THE BUSINESS MAINLY MAKE UNDERWATER LISTENING GEAR FOR RUSSIA'S NAVY AND OIL EXPLORATION INDUSTRY A TECHNOLOGY THAT US EXPERTS SAY RUSSIA HAS MASTERED OCEANPRIBOR BEGAN DABBLING IN RECORD PLAYERS BEFORE WORLD WAR II AN OBVIOUS SIDELINE FOR A COMPANY IN THE SOUND BUSINESS IT GOT SERIOUS ABOUT AUDIO GEAR ABOUT 20 YEARS AGO AND CLAIMS TO BE THE DOMESTIC SUPPLIER OF CHOICE TO RUSSIA'S ELITE BUT LIKE MUCH OF THE MILITARYINDUSTRIAL COMPLEX HERE OCEANPRIBOR LACKS MARKETING SAVVY A CLUTTERED CONFERENCE ROOM NOW SERVES AS A NOAH'S ARK OF SORTS FOR ITS KORVET BRAND AUDIO LINE WITH A COUPLE OF EACH OF ITS PRODUCTS INCLUDING A SPACESAVING VERTICAL TURNTABLE A NOVEL IDEA THAT NEVER TOOK THE ONLY VERTICAL MODEL IN RUSSIA NEVER BEFORE NEVER AFTER MR BELIAVSKY SAYS COMING AS CLOSE TO HUMOR AS HE EVER DOES BUT THEN IT'S HARD TO HAVE A SENSE OF HUMOR IF YOU RUN A RUSSIAN FACTORY THESE DAYS SUPPLIERS THAT ONCE WERE IN ANOTHER REGION OF THE SOVIET UNION ARE NOW IN FOREIGN AND NOT ALTOGETHER FRIENDLY COUNTRIES SUCH AS UKRAINE INFLATION HAS ROBBED MANAGEMENT OF ANY ABILITY TO ACCURATELY PROJECT COSTS ENGINEERS ARE QUITTING FOR THE MUCH MORE LUCRATIVE PROFESSION OF STREET PEDDLER AND OCEANPRIBOR'S 37ACRE RESORT ON THE GULF OF FINLAND HAS BEEN SEIZED BY THE GOVERNMENT OF NOWINDEPENDENT ESTONIA WITHOUT COMPENSATION COMPLAINS ALEXANDER SOLYAV DIRECTOR OF INTERNATIONAL SALES OCEANPRIBOR FIRST TRIED EXPORTING IN THE EARLY 1970S MANAGING TO SELL SOME STEREOS IN FRANCE BUT THE SHIPMENTS ABRUPTLY ENDED WHEN ITS FRENCH DISTRIBUTOR ASKED FOR A 3 PRICE CUT TO ASSUME RESPONSIBILITY FOR SERVICING ALL OF OUR PRODUCTS ARE MADE OF HOMEPRODUCED COMPONENTS AND THIS CAUSES DISTRUST IN THE WEST ABOUT DURABILITY MR BELIAVSKY SAYS OCEANPRIBOR WAS WILLING TO CUT THE PRICE BUT THE RUSSIAN MINISTRY THROUGH WHICH IT WAS FORCED TO DEAL WITH THE WEST REFUSED AND THE EXPORT WINDOW CLOSED OCEANPRIBOR KEPT MAKING THE EQUIPMENT FOR THE DOMESTIC MARKET AIMING FOR LOW VOLUME AND HIGH QUALITY JUST AS IT HAD DONE FOR YEARS WITH ITS HYDROACOUSTIC GEAR THEN MR JOHNSON THE MIT PROFESSOR ARRIVED IN 1991 AS A CONSULTANT FOR BATTERYMARCH FINANCIAL A BOSTON MONEY MANAGER THAT WAS CONSIDERING INVESTING IN A NEW OPTICALDISK PRODUCTION LINE AT OCEANPRIBOR BATTERYMARCH'S EFFORTS TO PERSUADE US PENSION FUNDS TO INVEST IN RUSSIAN DEFENSECONVERSION PROJECTS EVAPORATED BUT MR JOHNSON REMAINED ENTHUSIASTIC ABOUT THE STEREO SYSTEM THE AMPLIFIER IN PARTICULAR THE UNIT WITH 125 WATTS PER CHANNEL WAS COMPARABLE TO PRODUCTS THAT SELL FOR 600 TO 1000 IN THE US BUT COST CONSIDERABLY LESS HE SAYS WITH MR JOHNSON AS A MIDDLEMAN CAMBRIDGE SOUNDWORKS HAGGLED WITH OCEANPRIBOR BY FAX FINALLY IT AGREED TO BUY BOTH THE AMPLIFIER AND THE PREAMPLIFIER FOR BETWEEN 150 TO 200 A PIECE THEN PROBLEMS AROSE I TRIED TO GO THROUGH A BUNCH OF SHIPPING PEOPLE IN THE BOSTON AREA TO FIND OUT HOW MUCH IT'D COST TO GET THE STEREO GEAR OVER HERE RECALLS MR SCHOFIELD THE CAMBRIDGE SOUNDWORKS PRODUCT MANAGER BUT THE COST ESTIMATES WERE PROHIBITIVELY HIGH DUE TO TARIFFS IMPOSED AT THE SOURCE HE SAYS MR SCHOFIELD SAYS HE WAS TOLD THAT RUSSIA BASED ON OLD EXPORT RULES WOULD IMPOSE A FEE BASED ON THE AMPLIFIER'S WEIGHT THAT WOULD ADD BETWEEN 150 TO 200 TO HIS COST AT 200 THE AMPLIFIER IS A BARGAIN AT 400 IT PRICES ITSELF OUT OF THE MARKET HE SAYS SPEAKING IN WHOLESALE PRICE TERMS I GOT IN TOUCH WITH OCEANPRIBOR AND SAID I AM HAVING DIFFICULTY TRYING TO WORK THIS OUT' I NEVER HEARD FROM THEM AGAIN HE SAYS IN ST PETERSBURG MR BELIAVSKY SAYS HE KNOWS NOTHING ABOUT THE TARIFF THAT MR SCHOFIELD SAYS SPOILED THE DEAL OCEANPRIBOR AT FIRST BAFFLED WHEN CAMBRIDGE SOUNDWORKS LOST INTEREST IN THE AMPLIFIER HAS NOW CONCLUDED THAT THIS SUITOR WAS JUST LIKE ALL THE OTHERS HE SAYS I'M SADDENED BY THE FACT THAT I COULDN'T GET THAT AMPLIFIER IN BUT I'M OPTIMISTIC THAT SOMEBODY WILL SAYS MR JOHNSON ALTHOUGH COSMETICALLY IT COULD BE IMPROVED THE SONIC QUALITY OF THAT AMPLIFIER INDICATES THAT THEY ARE CAPABLE OF DOING SOMETHING REALLY GOOD BUT OCEANPRIBOR HAS GIVEN UP ON EXPORTING STEREO EQUIPMENT WE HAD CONTACT WITH SEVERAL EUROPEAN COMPANIES BUT COULD NOT ACHIEVE ANY SUCCESS MR BELIAVSKY SAID RECENTLY IN A PLAINTIVE LETTER TO THIS REPORTER THE REASON IS THAT THE SITUATION IN RUSSIAN INDUSTRY BECAME STILL MORE COMPLICATED SO CURRENTLY IT IS UNPROFITABLE FOR US TO MAINTAIN THE QUALITY OF OUR PRODUCTS AT THE PRICES DEMANDED BY FOREIGN CUSTOMERS NEVERTHELESS HE WRITES WE WANT TO SURVIVE SO WE BEGAN THE ADVERTISING OF TECHNOLOGIES IN THE AREA OF HYDROACOUSTIC SYSTEMS FOR COMMERCIAL PURPOSES MIGHT IT BE WORTHWHILE TO WORK IN THIS DIRECTION 9312230087 931223 SOUTH AFRICA IS DRAWING ENTHUSIASM FROM WALL STREET BY CONSTANCE MITCHELL FORD STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS WILL SOON BE HEARING A LOT MORE FROM STOCKBROKERS AND MUTUALFUND COMPANIES ABOUT SOUTH AFRICA WHERE STOCK PRICES KEEP HITTING RECORDS MERRILL LYNCH & CO AND LEHMAN BROTHERS INC A UNIT OF AMERICAN EXPRESS CO YESTERDAY SAID THEY WILL REESTABLISH THEIR BUSINESS TIES WITH SOUTH AFRICA EFFECTIVE IMMEDIATELY BOTH FIRMS SAID THEY WILL MAKE MARKETS IN SOUTH AFRICAN STOCKS AND BONDS PREPARE RESEARCH REPORTS ON SOUTH AFRICAN COMPANIES AND UNDERWRITE SOUTH AFRICAN SECURITIES AND THAT IS JUST ONE SIGN OF THE STREET'S ENTHUSIASM FOR SOUTH AFRICA WHOSE 240 BILLION STOCK MARKET IS AMONG THE WORLD'S 10 LARGEST ELSEWHERE A HALFDOZEN COMPANIES ARE SCRAMBLING TO DEVELOP MUTUAL FUNDS THAT WILL INVEST PRIMARILY IN SOUTH AFRICAN STOCKS US INVESTMENT BANKERS ARE ON THE HUNT FOR SOUTH AFRICAN CORPORATE RESTRUCTURING DEALS AS THAT COUNTRY'S BIG CONGLOMERATES FACE PRESSURE TO UNBUNDLE THEIR WEB OF HOLDINGS WALL STREET IS EXPLORING WAYS TO HELP RAISE MONEY TO EXPAND THE COUNTRY'S INFRASTRUCTURE US COIN DEALERS ARE PREPARING A MARKETING BLITZ FOR THE KRUGERRAND A SOUTH AFRICAN COIN THAT WAS ONCE THE WORLD'S NO 1 GOLD COIN INVESTORS ARE DRAWN TO SOUTH AFRICA BECAUSE IT HAS SO MANY POSITIVE CHARACTERISTICS THE SOPHISTICATION OF AN ESTABLISHED MARKET AND THE GROWTH POTENTIAL OF AN EMERGING MARKET SAID JUSTIN F BECKETT PRESIDENT OF NEW AFRICA ADVISORS A BLACKOWNED MONEY MANAGEMENT FIRM IN DURHAM NC THE FIRM IS TALKING WITH DREYFUS CORP'S DREYFUS TRUST CO ABOUT DEVELOPING A SOUTH AFRICA FUND TARGETED TO INSTITUTIONAL INVESTORS TWO ACQUISITION DEALS ARE ALREADY IN THE WORKS BOTH BY US COMPANIES RETURNING TO SOUTH AFRICA YESTERDAY PROCTER & GAMBLE CO SAID IT WILL REACQUIRE ITS FORMER PERMARK INTERNATIONAL LTD UNIT IN JOHANNESBURG WHICH IS LICENSED TO SELL SUCH BRANDS AS OIL OF OLAY CLEARASIL AND VICKS COLD REMEDIES THERE ALSO INTERNATIONAL BUSINESS MACHINES CORP SAID IT BOUGHT 24 OF ITS FORMER BUSINESS IN SOUTH AFRICA INFORMATION SERVICES GROUP LTD FOR 1105 MILLION RAND 327 MILLION AND HOPES TO DEEPEN OUR WORKING RELATIONSHIP MORE THAN A FEW INVESTMENT FUNDS ARE ABOUT TO BE BORN MORGAN STANLEY GROUP INC IS PREPARING AN INITIAL PUBLIC OFFERING OF THE CLOSEDEND MORGAN STANLEY AFRICA INVESTMENT FUND WHICH IS EXPECTED TO OFFER FOUR MILLION SHARES AT 15 EACH CLOSEDFUNDS OFFER SHARES AND THEN TRADE PUBLICLY ON AN EXCHANGE ALSO IN THE WORKS ACCORDING FEDERAL FILINGS ARE ADVANTAGE ADVISERS' SOUTH AFRICA FUND CARTWRIGHT & GOODWIN'S FIRST SOUTH AFRICA FUND JAMES CAPEL & CO'S AFRICA FUND AND ALLIANCE CAPITAL MANAGEMENT'S SOUTHERN AFRICA FUND WALL STREET'S RENEWED INTEREST IN SOUTH AFRICA COMES AS THE JOHANNESBURG STOCK EXCHANGE IS SURGING SO FAR THIS YEAR THE JSE ALLSHARES INDEX IS UP 415 THE INDEX OF GOLDCOMPANY STOCKS HAS SOARED 1593 AN INDUSTRIALS INDEX HAS RISEN ABOUT 15 TRADERS SAY US INVESTORS ARE FUELING THE RALLY THE SOUTH AFRICAN STOCK MARKET IS SMALL COMPARED WITH THE GIANT US AND TOKYO MARKETS BUT IT IS LARGER THAN MOST SOCALLED EMERGING MARKETS AND THE COUNTRY'S ECONOMY IS BOUNCING BACK STRONGLY FROM A SEVERE RECESSION THANKS PARTLY TO THE LIFTING OF SANCTIONS MOST US BROKERAGE FIRMS STOPPED TRADING SOUTH AFRICAN SECURITIES IN THE 1980S WHEN MANY MUNICIPAL GOVERNMENTS IN PROTEST OF SOUTH AFRICA'S APARTHEID SYSTEM OF RACIAL SEPARATION MADE IT CLEAR THEY WOULDN'T DO BUSINESS WITH FIRMS THAT HAD RELATIONSHIPS IN THE COUNTRY WHEN FACED WITH THE CHOICE OF EITHER LOSING LARGE PUBLICFINANCE CUSTOMERS OR SEVERING TIES WITH SOUTH AFRICA MOST FIRMS CHOSE TO LEAVE THE COUNTRY BUT THE BARRIERS BEGAN TO COME DOWN IN SEPTEMBER AFTER AFRICAN NATIONAL CONGRESS LEADER NELSON MANDELA CALLED FOR THE LIFTING OF SANCTIONS AGAINST SOUTH AFRICA CITING THE COUNTRY'S PROGRESS TOWARD A MULTIRACIAL GOVERNMENT YESTERDAY SOUTH AFRICA'S WHITELED PARLIAMENT OVERWHELMINGLY APPROVED A NEW CONSTITUTION GIVING BLACKS AND WHITES EQUAL RIGHTS FOR THE FIRST TIME THE DOCUMENT VEHEMENTLY OPPOSED BY PROAPARTHEID GROUPS REPLACES A CONSTITUTION THAT FOR GENERATIONS DENIED THE BLACK MAJORITY THE RIGHT TO VOTE HOLD POLITICAL OFFICE OR HAVE ANY VOICE IN NATIONAL AFFAIRS THE CONSTITUTION WILL GO INTO EFFECT AS SOON AS IT IS SIGNED BY PRESIDENT FW DE KLERK NO TIME WAS SET BUT NO DELAY WAS EXPECTED NEVERTHELESS SOUTH AFRICA'S POLITICAL SITUATION REMAINS UNCERTAIN AND POLITICAL VIOLENCE IS STILL A PROBLEM STILL MANY INVESTMENT ANALYSTS BELIEVE THAT THE POTENTIAL REWARDS OUTWEIGH THE RISK MR BECKETT LIKE MANY OTHER MONEY MANAGERS LOOKING AT SOUTH AFRICA BELIEVE THAT THE COUNTRY'S ECONOMY WILL GROW SUBSTANTIALLY AS THE DISPOSABLE INCOME OF THE COUNTRY'S BLACK POPULATION RISES FOR YEARS 80 OF SOUTH AFRICA'S POPULATION HAS BEEN EXCLUDED FROM THE MAINSTREAM ECONOMY ANY LONGTERM INVESTOR CAN FIGURE OUT THAT AS THAT POPULATION JOINS THE ECONOMY COMPANIES DOING BUSINESS IN SOUTH AFRICA WILL PROSPER THE GREATEST WEALTH IN THE 20TH CENTURY HAS BEEN MADE BY PEOPLE WHO SELL PRODUCTS TO A GROWING MIDDLE CLASS HE SAID THE SOUTH AFRICAN STOCK MARKET HAS MORE THAN 700 COMPANIES LISTED ON THE JOHANNESBURG STOCK EXCHANGE MORE THAN 30 OF THEM HAVE MARKET VALUES EXCEEDING 1 BILLION WITH SUCH ATTRIBUTES THEY SAY SOUTH AFRICA IS AN ATTRACTIVE ALTERNATIVE TO MARKETS IN LESSDEVELOPED COUNTRIES WHERE THE INVESTMENT CHOICES ARE MORE LIMITED EARLIER THIS MONTH ONE OF SOUTH AFRICA'S LARGEST BROKERAGE FIRMS FRANKEL POLLAK VINDERINE INC SAID IT WILL OPEN AN INVESTMENT BANKING OPERATION IN NEW YORK THAT WILL FOCUS ON RAISING CAPITAL FOR SOUTH AFRICAN CORPORATIONS AND OFFICIALS AT THE JOHANNESBURG STOCK EXCHANGE SAID THAT FIVE OTHER SOUTH AFRICAN SECURITIES FIRMS HAVE EXPRESSED AN INTEREST IN EXPANDING THEIR OPERATIONS TO NEW YORK 9312230086 931223 MERRILL IS CENSURED BY SEC ON DEALINGS WITH TWO INSURERS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON MERRILL LYNCH & CO SETTLED SECURITIES AND EXCHANGE COMMISSION CHARGES THAT IT VIOLATED RECORDKEEPING REQUIREMENTS IN ITS SECURITIES DEALINGS WITH TWO INSURANCE COMPANIES DURING THE 1980S IN AN ADMINISTRATIVE ACTION FILED AND SETTLED YESTERDAY THE SEC CENSURED MERRILL LYNCH AND ORDERED IT TO ADOPT INTERNAL CONTROLS TO ENSURE RECORDKEEPING COMPLIANCE UNDER THE SETTLEMENT THE SECURITIES FIRM WHICH NEITHER ADMITTED NOR DENIED THE ALLEGATIONS IS BARRED FROM FUTURE VIOLATIONS THE SEC ALLEGED THAT THE BOOKS AND RECORDS VIOLATIONS OCCURRED IN CONNECTION WITH MERRILL'S SECURITIES DEALINGS WITH TWO INSURANCE COMPANIES GUARANTEE SECURITY LIFE INSURANCE CO OF JACKSONVILLE FLA A UNIT OF TRANSMARK USA INC AND RELIANCE INSURANCE CO OF PHILADELPHIA A UNIT OF RELIANCE GROUP HOLDINGS INC IN ADDITION TWO INDIVIDUALS WHO WORKED FOR MERRILL LYNCH AND WERE INVOLVED IN THE RELIANCE MATTER AGREED TO A SETTLEMENT THEY ARE ROBERT PLUNKETT A BOND TRADER WHO LEFT THE FIRM IN 1988 AND FREDERICK ROEMER A CORPORATE BOND SALESMAN WITH MERRILL WHO WAS AN ACCOUNT EXECUTIVE DURING THAT PERIOD UNDER THEIR AGREEMENT MR PLUNKETT AND MR ROEMER WERE CENSURED AND BARRED FROM FUTURE VIOLATIONS NEITHER MEN ADMITTED NOR DENIED WRONGDOING THE SEC SAID THE SECURITIES DEALS INVOLVING RELIANCE WERE INITIATED BY RELIANCE A RELIANCE SPOKESMAN DECLINED COMMENT PAUL HUEYBURNS AN ASSISTANT SEC ENFORCEMENT DIRECTOR SAID THE INVESTIGATION IS CONTINUING THE AGENCY IS EXPECTED TO TAKE FURTHER ENFORCEMENT ACTION NEXT YEAR AGAINST OTHER PARTIES INVOLVED IN THE GUARANTEE SECURITY MATTER AND SEC OFFICIALS INDICATED THAT THE RELIANCE PROBE ISN'T CLOSED MERRILL LYNCH SAID IT DECIDED TO SETTLE BECAUSE THE SEC'S ORDER IS LIMITED SOLELY TO TECHNICAL RECORDKEEPING MATTERS IT CALLED THE ACCORD A SUBSTANTIAL VINDICATION OF ITS LONGSTANDING POSITION THAT ITS BOND TRANSACTIONS WITH THE FLORIDA INSURANCE COMPANY WERE LEGITIMATE AND THAT ITS CONDUCT WAS ETHICAL AND PROPER MR HUEYBURNS SAID THE SEC CONSIDERS THE BOOKS AND RECORDS CHARGES AS SERIOUS ASSERTING THESE ARE NOT TECHNICAL VIOLATIONS AT ISSUE IN THE GUARANTEE SECURITY MATTER WAS A SERIES OF YEAREND JUNK AND TREASURY BOND TRADES BETWEEN MERRILL AND THE INSURANCE COMPANY OVER SEVERAL YEARS IN THE 1980S THE INSURER SOLD HUNDREDS OF MILLIONS OF DOLLARS OF JUNK BONDS TO MERRILL AT YEAR END AND REPURCHASED THEM EARLY THE NEXT YEAR AT THE SAME TIME MERRILL SOLD THE INSURER TREASURY BONDS AT YEAR END AND REPURCHASED THEM EARLY THE NEXT YEAR NO SECURITIES ACTUALLY CHANGED HANDS IN A NUMBER OF THESE TRANSACTIONS THE SEC SAID THE RELIANCE PORTION OF THE CASE INVOLVED A SERIES OF SECURITIES SALES AND REPURCHASES IN 1986 BETWEEN MERRILL LYNCH AND RELIANCE AND A SECOND CUSTOMER WHO WASN'T IDENTIFIED THE SEC ALLEGED THAT MERRILL'S BOOKS AND RECORDS FAILED TO REFLECT THE TRANSACTIONS PROPERLY 9312230085 931223 CREDIT RATINGS MOODY'S UPGRADES RATINGS OF PRIMERICA AND TRAVELERS DEBT NEW YORK MOODY'S INVESTORS SERVICE INC UPGRADED DEBT RATINGS OF PRIMERICA CORP TRAVELERS CORP AND ITS MAIN UNITS ANTICIPATING THE MERGER OF THE TWO COMPANIES BY YEAR END THE RATINGS AGENCY SAID THE UPGRADES PRIMARILY REFLECT THE COMBINED ORGANIZATION'S EARNINGS POWER DIVERSIFIED SOURCES OF INCOME GOOD CAPITALIZATION AND A STRONG MARKET POSITION IN EACH OF ITS CORE BUSINESSES IN SEPTEMBER TRAVELERS DIRECTORS APPROVED AN OFFER BY FINANCIAL SERVICES CONCERN PRIMERICA TO TAKE OVER THE COMPANY IN A 42 BILLION TRANSACTION TRAVELERS ALSO SAID THAT IT AND PRIMERICA RECEIVED ALL INSURANCE REGULATORY APPROVALS NEEDED TO COMPLETE THEIR MERGER MOODY'S SAID THE FAVORABLE CONSIDERATIONS ARE TEMPERED BY THE SIZE OF TRAVELERS UNDERPERFORMING REALESTATE PORTFOLIO AND BY THE POSSIBILITY OF ADDITIONAL LOSSES IN THE NEAR TERM THE RATING AGENCY ALSO NOTED THAT TRAVELERS' GROUP HEALTH INSURANCE OPERATIONS WHILE PROFITABLE AND WELLPOSITIONED FACE UNCERTAINTIES BECAUSE OF PROPOSED FEDERAL LEGISLATION ON HEALTHCARE REFORM AT THE SAME TIME MOODY'S RAISED THE RATING ON LONGTERM DEBT OF COMMERCIAL CREDIT CO A CONSUMER FINANCE AND INSURANCE SERVICES UNIT OF PRIMERICA MOODY'S RAISED THE RATING ON COMMERCIAL CREDIT'S LONGTERM DEBT TO SINGLEA1 FROM SINGLEA2 AND CONFIRMED THE COMPANY'S SHORTTERM RATING FOR COMMERCIAL PAPER AT PRIME1 AFFECTING ABOUT 54 BILLION IN SECURITIES THE UPGRADE MOODY'S SAID WAS PROMPTED BY THE COMPANY'S ABOVEAVERAGE PROFITABILITY CONSERVATIVE LEVERAGE AND THE EXPECTATION OF IMPROVED ASSET QUALITY THE RATING AGENCY SAID IT RAISED THE RATINGS OF PRIMERICA SENIOR DEBT TO SINGLEA2 FROM SINGLEA3 WHILE THE RATING ON ITS PREFERRED STOCK WAS RAISED TO A2 FROM A3 AND THAT ON ITS COMMERCIAL PAPER WAS RAISED TO PRIME1 FROM PRIME2 ABOUT 14 BILLION OF PRIMERICA SECURITIES WAS AFFECTED MOODY'S ALSO RAISED THE DEBT RATINGS OF TRAVELERS AND THE CREDIT RATINGS OF ITS PRINCIPAL OPERATING UNITS TRAVELERS INSURANCE CO AND TRAVELERS INDEMNITY GROUP AFFECTING ABOUT 700 MILLION OF SECURITIES 9312230084 931223 ECONOMY OVER NEXT 5 YEARS PENTAGON TO GET MORE MONEY THAN CLINTON EARLIER SET BY DAVID WESSEL AND THOMAS E RICKS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON SETTLED A DISPUTE BETWEEN THE WHITE HOUSE BUDGET OFFICE AND THE PENTAGON GIVING THE MILITARY SOMEWHAT MORE MONEY TO SPEND THAN HE PREVIOUSLY PROPOSED SO LONG AS IT DOESN'T ACTUALLY SPEND THE MONEY NEXT YEAR OVER THE NEXT FIVE YEARS BUDGET DIRECTOR LEON PANETTA INDICATED YESTERDAY MR CLINTON AGREED TO GIVE THE PENTAGON SLIGHTLY MORE THAN 10 BILLION ABOVE THE 122 TRILLION HE HAD PROPOSED THE PENTAGON WAS HOPING FOR AN INCREASE THREE TIMES AS LARGE AND TOP OFFICIALS SAID THEY NOW HAVE TO COME UP WITH PROGRAM CUTS BEYOND THOSE ALREADY CONTEMPLATED THE MOST LIKELY TARGET WILL BE PENTAGON PROCUREMENT SPENDING WHICH GOES TO DEFENSE CONTRACTORS TO BUILD WEAPONS PLANES AND SHIPS MR CLINTON PREVIOUSLY PROPOSED 2481 BILLION IN FISCAL 1995 SPENDING AUTHORITY THE MONEY THAT GOES INTO THE PENTAGON CHECKBOOK MR PANETTA SAID THE PRESIDENT WILL ASK CONGRESS TO GRANT THE PENTAGON MORE BUT WOULDN'T BE SPECIFIC OTHER OFFICIALS SAID THE REQUEST IS LIKELY TO BE ONLY A FEW BILLION DOLLARS MORE FISCAL 1995 BEGINS OCT 1 THE PRESIDENT'S BUDGET WILL SHOW DEFENSE OUTLAYS THE MONEY ACTUALLY TO BE SPENT IN 1995 AT THE SAME 258 BILLION OUTLINED BY MR CLINTON IN A FIVEYEAR DEFENSE PLAN THIS SPRING OUTLAYS COME FROM SPENDING AUTHORITY GRANTED IN CURRENT AND PAST YEARS THE BUDGET LAW SETS CEILINGS ON BOTH SPENDING AUTHORITY AND OUTLAYS BUT THE OUTLAY LIMIT FOR 1995 WAS THE ONE GIVING MR CLINTON TROUBLE AS HE PREPARED HIS BUDGET EVERY EXTRA DOLLAR FOR THE PENTAGON IS A DOLLAR LESS FOR MR CLINTON'S DOMESTIC AGENDA THE PRESIDENT NOW HAS MADE THE FINAL BUDGET DECISIONS MR PANETTA SAID DETAILS HOWEVER WON'T BE RELEASED UNTIL FEBRUARY MR PANETTA SAID THE BUDGET DUE FEB 7 WILL PROJECT A 190 BILLION DEFICIT FOR FISCAL 1995 THAT'S ABOUT 10 BILLION LESS THAN THE ADMINISTRATION'S FALL FORECAST THE REDUCTION REFLECTS ALTERED ECONOMIC FORECASTS AND TECHNICAL ESTIMATES MR CLINTON ISN'T PROPOSING ANY FURTHER DEFICITREDUCTION MEASURES THE FISCAL 1993 DEFICIT WAS 2549 BILLION MR PANETTA DIDN'T GIVE AN UPDATED FORECAST FOR 1994 THE CURRENT FISCAL YEAR BUT IT IS EXPECTED TO BE SOMEWHERE BETWEEN THE 1993 AND 1995 LEVELS IN ITS QUEST FOR MORE MONEY THE PENTAGON HAS FOCUSED ON THE FIVEYEAR SPENDING HORIZON IT WARNED THAT EVEN IF IT MAKES ALL THE PROGRAM CUTS ALREADY IN THE WORKS IT WOULD NEED 30 BILLION MORE SPENDING AUTHORITY OVER THE NEXT FIVE YEARS THAN MR CLINTON PROVIDED PRIMARILY BECAUSE OF CHANGED INFLATION PROJECTIONS AND CONGRESSIONALLY MANDATED PAY INCREASES THE PRESIDENT DECIDED TO GIVE THE PENTAGON SLIGHTLY MORE THAN ONETHIRD OF WHAT IT SOUGHT MR PANETTA INDICATED THE PENTAGON HASN'T DECIDED WHAT CHANGES IT WILL HAVE TO MAKE TO LIVE WITH THE NEW BUDGET ONE PERSON FAMILIAR WITH A DISCUSSION THAT TOOK PLACE LAST WEEK WITH THE JOINT CHIEFS OF STAFF SAID THAT THE SERVICES HAVE PROPOSED A LONG LIST OF NASTY PROCUREMENT HITS AMONG THE ITEMS DISCUSSED YESTERDAY AT THE PENTAGON BY TOP OFFICIALS WAS DELAYING THE NAVY'S PLANNED NEW AIRCRAFT CARRIER THE CVN76 MADE BY TENNECO INC'S NEWPORT NEWS SHIPBUILDING & DRY DOCK CO SUBSIDIARY OFFICIALS ALSO UNHAPPILY CONTEMPLATED REOPENING A DECISION TO PRESERVE THE NATION'S SUBMARINEBUILDING CAPACITY THE PENTAGON DECIDED IN SEPTEMBER THAT IT WANTED GENERAL DYNAMICS CORP'S ELECTRIC BOAT UNIT TO BUILD ANOTHER SEAWOLF ATTACK SUBMARINE EVEN THOUGH THE SUB ISN'T NEEDED ALTHOUGH THE PRESIDENT MUST OUTLINE A FIVEYEAR SPENDING PLAN CONGRESS MAKES DECISIONS ONE YEAR AT A TIME AND TRADITIONALLY ALLOCATES LESS FOR DEFENSE THAN THE WHITE HOUSE DOES WHILE BRIEFING REPORTERS AT THE WHITE HOUSE MR PANETTA WAS EAGER TO LIST AREAS WHERE MR CLINTON HAS DECIDED TO SPEND MORE MONEY NEXT YEAR THAN CONGRESS APPROPRIATED FOR THIS YEAR MR PANETTA WAS LESS WILLING TO SAY WHERE MR CLINTON WILL SEEK TO SPEND LESS ALTHOUGH HE SAID MR CLINTON WILL PROPOSE SPENDING LESS IN NINE OF THE 14 MAJOR FEDERAL DEPARTMENTS MR PANETTA WOULDN'T IDENTIFY THEM THE BUDGET DIRECTOR WASN'T USING A CONSISTENT STANDARD A SPOKESMAN LATER ACKNOWLEDGED IN SOME AGENCIES SPENDING AUTHORITY IS DOWN IN OTHERS OUTLAYS ARE DOWN AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES A HIRING FREEZE FOR FISCAL 1995 WAS IMPOSED AT THE PUBLIC HEALTH SERVICE AND THE FOOD AND DRUG ADMINISTRATION THE FREEZE EFFECTIVE DEC 8 DISAPPOINTED THE PHARMACEUTICAL INDUSTRY A 1992 LAW REQUIRED THE INDUSTRY TO PAY AN ADDITIONAL 381 MILLION IN FEES OVER FIVE YEARS SO THE FDA COULD HIRE MORE EMPLOYEES AND SPEED REVIEW OF NEW DRUGS APPROVALS NOW AVERAGE 30 MONTHS IF THE FDA IS SUBJECT TO A HIRING FREEZE IT WON'T BE ABLE TO LIVE UP TO ITS PART OF THE BARGAIN SAID A SPOKESMAN FOR THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION AMONG THE PROGRAMS MR CLINTON WANTS TO SPEND MORE ON NEXT YEAR MR PANETTA SAID ARE NATIONAL INSTITUTES OF HEALTH RESEARCH AIDS RESEARCH CHILDHOOD IMMUNIZATION LOCAL POLICE THE JOB CORPS AID FOR DISLOCATED WORKERS SMALLBUSINESS DEVELOPMENT COMMUNITYDEVELOPMENT BANKS THE NATIONAL INSTITUTE FOR STANDARDS AND TECHNOLOGY THE NATIONAL SCIENCE FOUNDATION AND THE CHAPTER I PROGRAM FOR SCHOOLS WITH DISADVANTAGED CHILDREN MR PANETTA WOULDN'T QUANTIFY THE INCREASES OR SAY WHETHER THEY EXCEED WHAT WOULD BE REQUIRED TO COPE WITH INFLATION THE BUDGET DIRECTOR SAID THE PRESIDENT'S WELFAREREFORM INITIATIVE WON'T BE INCLUDED IN THE BUDGET IT WILL FOLLOW LATER NEXT YEAR 9312230083 931223 MARKETING & MEDIA MARKETSCAN RAYOVAC SETS 20 MILLION PUSH TO POWER RECHARGEABLE BATTERY BY JACQUELINE SIMMONS BETWEEN 35 AND 40 OF ALL BATTERY SALES ARE WRAPPED UP BETWEEN OCTOBER AND DECEMBER ESTIMATES DEEPAK D RAJ A SECURITIES ANALYST AT MERRILL LYNCH & CO AND THIS YEAR THE COMPETITION IS EVEN FIERCER THAN USUAL AS RAYOVAC CORP SPENDS 20 MILLION TO INTRODUCE A NEW RECHARGEABLE BATTERY IN THE COMPANY'S BIGGEST AD CAMPAIGN EVER MEANWHILE INDUSTRY LEADER DURACELL INTERNATIONAL INC IS SPENDING 48 MILLION ON ITS NEW COPPER TOP QUEST CAMPAIGN A SERIES OF COMMERCIALS FEATURING CUSTOMER INTERVIEWS SHOT ON VIDEOTAPE AND RALSTON PURINA CO'S EVEREADY BATTERY CO UNIT HAS FRESHENED UP ITS ENERGIZER BUNNY CAMPAIGN WITH ADS FEATURING A MYTHICAL BATTERY COMPANY ATTEMPTING TO KILL THE BUNNY THE RAYOVAC ADS WHICH RESEMBLE VIDEO GAMES USE COMPUTERGENERATED GRAPHICS GOING INTO THE CHRISTMAS SEASON DURACELL CONTINUED ITS DOMINANCE OF THE BATTERY CATEGORY DURACELL'S SALES IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS ROSE 87 TO 4687 MILLION IN THE 40 WEEKS ENDED OCT 10 WHILE EVEREADY'S SALES FELL 05 TO 3867 MILLION ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE RAYOVAC'S SALES ROSE 92 TO 1398 MILLION WHILE PRIVATELABEL BATTERIES HAD A SALES GAIN OF 87 IT IS CRUCIAL FOR BATTERY COMPANIES TO COMMAND SHELF SPACE ESPECIALLY NEAR THE CHECKOUT COUNTER WHERE MANY LASTMINUTE IMPULSE PURCHASES ARE MADE INDEED DURACELL ATTRIBUTES THE COMPANY'S GROWTH IN LARGE PART TO ITS INCREASED DISTRIBUTION IN MASS MERCHANDISERS AND WAREHOUSE CLUBS EVEREADY DISPUTES THE SALES NUMBERS AND DECLINED TO COMMENT ON ITS RECENT SALES PERFORMANCE AND THIS YEAR'S AD SPENDING BUT THE NEWS IN THE BATTERY MARKET THIS SEASON IS RAYOVAC'S RENEWAL BRAND ALKALINE REUSABLE BATTERIES INTRODUCED IN SEPTEMBER THE COMPANY CLAIMS THE BATTERY NOW SOLD IN ABOUT 25000 STORES OUTPERFORMS TRADITIONAL RECHARGEABLE BATTERIES GENERALLY MADE WITH NICKEL CADMIUM THE BATTERIES RETAIL FOR BETWEEN 5 AND 6 A PACK BUT REQUIRE A RAYOVAC POWER STATION TO RECHARGE THEM THE POWER STATIONS COME IN TWO SIZES AND SELL FOR 15 AND 30 THE PRIMARY CHALLENGE IS EDUCATING SHOPPERS ABOUT THE NEW PRODUCT SAYS RAYOVAC MARKETING DIRECTOR JERRY ALBRIGHT THE WHOLE THING WITH RENEWAL IS A COMMUNICATIONS ISSUE THERE'S ALSO STILL THE FACT THAT CONSUMERS HAVE TO GO THROUGH THE RECHARGEABLE PROCESS AND THERE ARE SOME WHO JUST AREN'T GOING TO DO THAT MR ALBRIGHT DESCRIBES RENEWAL AS THE NEXT LOGICAL PHASE OF POWER NOTING ITS ENVIRONMENTAL FRIENDLINESS A LOT OF PEOPLE ARE ALSO TIRED OF HOW MUCH THEY ARE SPENDING ON BATTERIES HE SAYS PEOPLE ARE STARTING TO GET MORE INTO THAT MINDSET SO THE ACCEPTANCE OF RECHARGEABLES IS AT A HIGHER PLATEAU THAN IT'S EVER BEEN SALES OF RECHARGEABLE BATTERIES TOTAL AN ESTIMATED 83 MILLION DURACELL WHICH SELLS A NICKELMETAL HYDRIDE RECHARGEABLE BATTERY PACK OVERSEAS FOR LAPTOP NOTEBOOK AND OTHER PORTABLE COMPUTERS PLANS TO ENTER THE US MARKET NEXT YEAR AND IN AUGUST OF THIS YEAR EVEREADY ACQUIRED GATES ENERGY PRODUCTS INC A MAKER OF NICKELBASED RECHARGEABLE BATTERIES TO MOVE FURTHER INTO THE AREA THE ACQUISITION POSITIONS US TO CAPITALIZE ON THE HIGHTECH COMPUTERIZED MARKETS SAYS AN EVEREADY SPOKESMAN BUT NEITHER DURACELL NOR EVEREADY SEEM CONCERNED ABOUT RAYOVAC'S RECHARGEABLE ALKALINE BATTERY THEORA WEBB DIRECTOR OF PUBLIC AFFAIRS FOR DURACELL SAYS THE COMPANY ISN'T INTERESTED IN A RECHARGEABLE ALKALINE BATTERY EVEREADY DECLINED TO COMMENT ON RAYOVAC'S PRODUCT MANY CONSUMERS ALSO AREN'T CONVINCED OF THE VALUE OF RECHARGEABLE BATTERIES I'M PUTTING OFF BUYING RECHARGEABLES BECAUSE I'M WAITING TO HEAR MORE ABOUT IT SAYS DAVID GORCZYNSKI A NEW YORKER WHO LOADS HIS WALKMAN WITH AN EIGHTPACK OF AA BATTERIES ONCE EVERY THREE WEEKS AND PARTTIME PHOTOGRAPHER ALAIN ROTHSTEIN IS STILL WARY OF THE PRODUCT IF I'M IN THE PROCESS OF TAKING PICTURES I'D BE MORE AGGRAVATED BY THE FACT A RECHARGEABLE BATTERY DIED 9312230082 931223 LETTERS TO THE EDITOR MISSOURI BANCSHARES DEFENDS ITS RECORD I AM VERY UPSET ABOUT YOUR DEC 8 ARTICLE ON LAWRENCE LINDSEY A GOVERNOR OF THE FEDERAL RESERVE YOU STATE HE OBJECTED TO UNITED MISSOURI BANCSHARES INC'S APPLICATION TO BUY FOUR KANSAS BANKS THE FED HE SAID IN THAT CASE SHOULDN'T RELY SO HEAVILY ON UNITED MISSOURI'S PROMISES TO IMPROVE ITS DISAPPOINTING LENDING PERFORMANCE MR LINDSEY WAS RELYING ON INFORMATION GIVEN TO HIM BY MILITANT GROUPS THE INFORMATION WAS WRONG THE MILITANT GROUP OPPOSED OUR APPLICATION BECAUSE WE DID NOT PAY THEIR ORGANIZATION EXTORTION MONEY THE FEDERAL RESERVE DELAYED OUR APPLICATION FOR 18 MONTHS DUE TO THIS COMPLAINT AND FINALLY APPROVED IT LATE IN THE DAY WHICH WAS VERY EXPENSIVE TO OUR COMPANY IN MANY DIFFERENT WAYS RIGHT ALONG WE HAVE MADE MORE LOANS IN THE MINORITY AREAS THAN ANY OTHER FINANCIAL INSTITUTION IN THE REGION WE HAVE ALSO MADE 68 OF ALL LOWERINCOME HOME IMPROVEMENT LOANS IN MISSOURI UNDER A STATE GOVERNMENT PLAN OUR RECORD IS VERY GOOD AND MR LINDSEY SHOULD LOOK INTO WHO IS REALLY MAKING THE LOANS RATHER THAN CONDEMNING US BECAUSE WE WON'T PAY OFF MILITANT GROUPS IT IS TIME THE GOVERNMENT ITS REGULATORS AND THE MEDIA STOPPED POLITICIZING THE LENDING PROCESS 9312230081 931223 TECHNOLOGY & MEDICINE A SUITE OF PROGRAMS FOR COMPUTERS TOPS A LIST OF BESTSELLERS SAN JOSE CALIF A SUITE OF COMPUTER PROGRAMS HAS FOR THE FIRST TIME MADE IT TO THE TOP OF AN INDUSTRY BESTSELLER LIST OUTSELLING INDIVIDUAL APPLICATION PROGRAMS DATAQUEST INC A MARKETRESEARCH FIRM ESTIMATED THAT 16 MILLION UNITS OF MICROSOFT CORP'S MICROSOFT OFFICE FOR WINDOWS WILL BE SHIPPED BY THE END OF 1993 VALUED AT ABOUT 493 MILLION IN REVENUE THE SUITE TOOK THE TOP SPOT FROM MICROSOFT'S WORD WORDPROCESSING PROGRAM WHICH IS EXPECTED TO SELL 27 MILLION UNITS VALUED AT 407 MILLION MICROSOFT OFFICE INCLUDES WORD THE EXCEL SPREADSHEET AND THE COMPANY'S POWERPOINT PRESENTATIONGRAPHICS PROGRAM SUITES COMBINE MULTIPLE PROGRAMS IN ONE PACKAGE AND INCREASINGLY ARE TAILORED TO MAKE IT EASIER TO SHARE INFORMATION AMONG THE PROGRAMS THEY HAVE BECOME MORE POPULAR IN THE PAST YEAR AND HAVE DRIVEN DOWN INDUSTRY PROFIT MARGINS BY OFFERING TWO OR THREE PRODUCTS FOR NOT MUCH MORE THAN THE PRICE OF ONE DATAQUEST ESTIMATED THAT THE MARKET FOR SUITES WILL TRIPLE TO 844 MILLION THIS YEAR AND SHOULD SURPASS THE 1 BILLION MARK IN 1994 IT SAID THE NO 3 APPLICATION PROGRAM FOR THE YEAR IS WORDPERFECT CORP'S WORDPERFECT FOR WINDOWS WHICH IS EXPECTED TO SELL 29 MILLION UNITS VALUED AT 390 MILLION 9312230080 931223 ECONOMY ECONOMY GREW AT RATE OF 29 IN 3RD QUARTER FINAL ESTIMATE IS HIGHER THAN PREVIOUS FORECAST STRONG 4TH PERIOD SEEN BY RACHEL ENGLEHART STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMY GREW AT AN INFLATIONADJUSTED 29 ANNUAL RATE IN THE THIRD QUARTER ACCORDING TO REVISED FIGURES RELEASED BY THE COMMERCE DEPARTMENT THE FINAL ESTIMATE OF THE THIRDQUARTER INCREASE IN REAL GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US IS HIGHER THAN THE PREVIOUS ESTIMATE OF 27 ISSUED A MONTH AGO THE GROWTH RATE FOLLOWS A MORE MEAGER 19 EXPANSION IN THE SECOND QUARTER THE LARGEST UPWARD REVISION IN THE THIRDQUARTER FIGURE WAS IN NONFARM INVENTORIES WHILE FARM INVENTORIES HAD THE LARGEST DOWNWARD REVISION MUCH OF THE ECONOMIC GROWTH IN THE QUARTER CAME FROM SECTORS SENSITIVE TO LOW INTEREST RATES INCLUDING CONSUMER DURABLE GOODS SUCH AS CARS SALES OF NEW HOMES AND BUSINESS INVESTMENT IN CAPITAL EQUIPMENT FINAL SALES GREW 34 REVISED UPWARD FROM AN ESTIMATED 33 THE FOREIGN COMPONENT OF PROFITS AND DOMESTIC PROFITS OF NONFINANCIAL CORPORATIONS WERE REVISED UPWARD ANALYSTS WERE ENCOURAGED BY THE THIRDQUARTER PERFORMANCE THE KEY THING IS THE ECONOMY SHOOK OFF ITS FIRSTHALF LETHARGY AND BEGAN A NEW RESURGENCE SAID ROBERT DEDERICK CHIEF ECONOMIST AT NORTHERN TRUST CO IN CHICAGO SO IT WILL BE ENDING THE YEAR ON A MUCH FIRMER NOTE THAN IT BEGAN THE PATTERN OF ECONOMIC STRENGTH APPEARS TO BE CONTINUING IN THE FOURTH QUARTER STUART HOFFMAN CHIEF ECONOMIST AT PNC BANK CORP SAID GDP HOUSING AND MANUFACTURING ALL ARE STRONGER IN THE YEAR'S FINAL THREE MONTHS BUT SOME ANALYSTS EXPECT GROWTH IN THE FIRST HALF OF NEXT YEAR TO BE SLOWER THAN IN RECENT MONTHS THE IMPORTANT THING IS THAT CONSUMERSPENDING GAINS THAT WE HAVE SEEN IN THE THIRD QUARTER WILL BEGIN TO TAPER OFF IN THE NEW YEAR BECAUSE INCOMES AREN'T THERE TO SUPPORT THE KIND OF INCREASES WE'VE SEEN SAID SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP ANOTHER REASON FOR THE EXPECTED SLOWDOWN NEXT YEAR IS THAT MANY WEALTHY PEOPLE WILL START PAYING HIGHER INCOME TAXES INFLATION APPEARED TO SLOW IN THE THIRD QUARTER THE FIXEDWEIGHT PRICE INDEX ROSE AT A 18 ANNUAL RATE COMPARED WITH A 26 RATE IN THE SECOND QUARTER INFLATION REMAINED THE NONPROBLEM OF THE DAY SAID MR DEDERICK ADDED MR HOFFMAN THERE'S NOTHING NEW FROM THE INFLATION SIDE ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE SOME OF THE MAJOR COMPONENTS OF THE GROSS DOMESTIC PRODUCT EXPRESSED IN SEASONALLY ADJUSTED ANNUAL RATES IN BILLIONS OF CONSTANT 1987 DOLLARS FROM 1240 IN THE PREVIOUS QUARTER 9312230079 931223 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG ONE OF THE PROMISES OF THE INFORMATION HIGHWAY SCHEMES UNFOLDING NOW IS TO BRING INTERACTIVE ELECTRONIC SHOPPING TO MILLIONS OF HOMES THE IDEA IS TO COMBINE TELEVISION SHOPPING CHANNELS WHICH DO A GOOD JOB OF VISUALLY DESCRIBING AND PEDDLING PRODUCTS WITH MAILORDER CATALOGS WHICH LET CONSUMERS BROWSE ON THEIR OWN SCHEDULES THROUGH VAST QUANTITIES OF BRANDNAME ITEMS IN A FEW YEARS A CONSUMER SUPPOSEDLY WILL BE ABLE TO CALL UP ON A SCREEN AT ANY TIME WHOLE ELECTRONIC CATALOGS SHOWING EVERYTHING SOLD BY A PARTICULAR MERCHANT OR HUNDREDS OF ITEMS IN A PARTICULAR CATEGORY FROM MANY MERCHANTS BUT THE FIRST EXPERIMENTS IN SUCH ELECTRONIC SHOPPING AREN'T WAITING FOR THE INFORMATION HIGHWAY TO BE LAID DOWN AS 1993 DRAWS TO A CLOSE A FEW COMPANIES ARE STARTING TO OFFER INTERACTIVE SHOPPING SYSTEMS THAT CAN BE USED ON PCS EQUIPPED TO READ CDROM DISKS THOSE SHINY LITTLE PLATTERS THAT HOLD VAST QUANTITIES OF MULTIMEDIA MATERIAL TEXT VIDEO GRAPHICS AND SOUND THIS WEEK I'LL REVIEW AN INTERACTIVE NAMEBRAND CDROM CATALOG SERVICE FOR GENERAL GOODS FROM CLOTHING TO JEWELRY TO COOKING SUPPLIES NEXT WEEK I'LL COVER CDROMS DESIGNED TO LET YOU SHOP FOR COMPUTER SOFTWARE FROM COMPETING PUBLISHERS APPLE COMPUTER CASTING ABOUT FOR NEW BUSINESSES TO AUGMENT ITS SHRINKING MARGINS ON MACINTOSH COMPUTERS HAS JUST LAUNCHED A PILOT PROJECT FOR A CDROM SHOPPING SERVICE CALLED EN PASSANT DESPITE THE INCREDIBLY GOOFY NAME APPLE'S EFFORT IS A SURPRISINGLY ATTRACTIVE WELLDESIGNED FIRST CUT THE 30000 HOUSEHOLDS IN APPLE'S PILOT PROJECT RECEIVE A FREE SINGLE DISK WITH NEARLY TWO DOZEN CATALOGS ON IT INCLUDING SELECTIONS FROM LANDS' END AND LL BEAN CLOTHING TIFFANY & CO JEWELRY KITCHEN ITEMS AND HOUSEWARES FROM POTTERY BARN AND WILLIAMSSONOMA AND ELECTRONICS FROM THE GOOD GUYS AND APPLE THERE'S EVEN A FLORIST AS WELL AS OFFERS TO SUBSCRIBE TO THIS NEWSPAPER AND OTHER PRODUCTS FROM ITS PUBLISHER DOW JONES & CO EN PASSANT ISN'T DESIGNED FOR OR AIMED AT COMPUTER TECHIES ALMOST NONE OF ITS CONTENT RELATES TO COMPUTERS AND IT'S INCREDIBLY EASY TO OPERATE EVERY SCREEN HAS A RICH STYLISH LOOK THAT COULDN'T BE MISTAKEN FOR A WORD PROCESSOR THE PILOT PROJECT IS FOR MAC USERS BUT IF IT SUCCEEDS APPLE PLANS AN IDENTICAL VERSION FOR IBMCOMPATIBLE MACHINES STILL NOBODY'S GOING TO WANT TO USE AN INTERACTIVE SHOPPING SERVICE UNLESS IT OFFERS REAL ADVANTAGES OVER CURRENT FORMS OF HOME SHOPPING ADVANTAGES THAT OUTWEIGH ITS INHERENT DISADVANTAGES IE YOU NEED A PERSONAL COMPUTER TO USE IT YOU CAN'T BROWSE THROUGH IT IN THE BATHROOM OR THE CAR ETC UNLIKE PAPER CATALOGS EN PASSANT DOESN'T TAKE UP HALF THE SPACE IN YOUR HOUSE DOZENS OF THICK CATALOGS CAN FIT ON A DISK THE SIZE OF A LARGE COASTER YOU CAN COMPARE COMPETING PRODUCTS SIDE BY SIDE AND YOU CAN ORDER FROM ALL VENDORS THROUGH A SINGLE TOLLFREE PHONE NUMBER APPLE HAS SET UP IN THE FUTURE THE COMPANY HOPES TO OFFER ORDERING DIRECTLY FROM THE PC SCREEN VIA A MODEM UNLIKE HOMESHOPPING TV CHANNELS THE CDROM DISPLAYS ANY CATEGORY OF GOODS AT ANY TIME EN PASSANT LETS YOU VIEW THE GOODS IN SEVERAL WAYS YOU CAN EITHER BROWSE BY CATALOG OR ENTER DEPARTMENTS THAT GROUP RELATED GOODS THROUGHOUT THE CATALOGS THERE'S ALSO AN ELECTRONIC VALET THAT WILL LET YOU DESIGN AND SAVE FOR REPEATED USE PERSONAL MULTIVENDOR CATALOGS WITH ONLY THE TYPES OF GOODS YOU CARE ABOUT SUCH AS CHILDREN'S CLOTHING OR THE FEATURE WILL LET YOU FIND A SPECIFIC TYPE OF ITEM BELOW ANY MAXIMUM PRICE YOU SET YOU ALSO CAN SET UP REMINDERS THAT WILL NAG YOU TO BUY GIFTS FOR SPECIFIC PEOPLE AT SPECIFIC TIMES WITHIN THE CATALOGS CLEVER USE ALSO IS MADE OF THE POWER OF THE COMPUTER YOU CAN SEE HOW A LANDS' END SWEATER LOOKS IN VARIOUS COLORS BY CLICKING ON LITTLE COLOR SWATCHES TO MAKE THE WHOLE SWEATER CHANGE HUES ANOTHER SECTION LETS YOU FIND THE RIGHT TIEANDSHIRT COMBINATION WITH A FEW MOUSE CLICKS YOU CAN SAMPLE THE SIGHTS AND SOUNDS OF VIDEO AND AUDIO TAPES FROM THE NATURE COMPANY BUT THIS PILOT VERSION OF EN PASSANT WHICH APPLE ISN'T OFFERING TO THE GENERAL PUBLIC HAS SOME FLAWS THE MECHANISM FOR SEARCHING THE CATALOGS WORKED POORLY I WENT LOOKING FOR A WINTER COAT OR PARKA BUT THE WORDS COAT AND PARKA FAILED TO FIND A LANDS' END PARKA I'D SPOTTED EARLIER THE CATEGORY CALLED OUTDOORS MISC ALSO MISSED THE PARKA THOUGH IT SHOWED ME A VERY NICE BREAST PUMP FOR USE ON CAMPING TRIPS THERE'S ALSO A RAGGED COLLECTION OF EDITORIAL MATERIAL CALLED EP MAGAZINE WHICH I THINK NEEDS A LOT OF WORK IT PROMISES BUSINESS ADVICE FROM AUTHOR TOM PETERS AND ELSEWHERE BUT THE SELECTIONS ARE TOO BRIEF TO BE REALLY USEFUL IT HAS A FEATURE ON THE 20 BEST SCENIC DRIVES IN AMERICA WITHOUT DETAILED ROAD MAPS I ALSO FOUND IT MADDENING THAT YOU COULDN'T PRINT OUT ANYTHING EXCEPT THE ORDER FORM LISTING GOODS YOU SELECTED AND EN PASSANT OFFERS NO OBVIOUS WAY TO SWITCH TO ANOTHER PROGRAM ON YOUR COMPUTER FOR A MINUTE AND THEN RETURN TO THE CATALOG IT'D BE NICE TO BE ABLE TO CHECK YOUR BANK BALANCE IN A PERSONAL FINANCE PROGRAM WHILE WEIGHING A LARGE CATALOG PURCHASE ALL IN ALL HOWEVER EN PASSANT IS AN IMPRESSIVE START TOWARD INTERACTIVE SHOPPING AT HOME IT RAISES THE HOPE I'LL NEVER HAVE TO GO TO THE MALL AGAIN 9312230078 931223 12 DAYS OF CHRISTMAS SANTA IS MAD AS HECK AND HE'S NOT GOING TO TAKE IT ANYMORE BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL IT'S NOT EVEN CHRISTMAS YET AND SANTA IS ALREADY VERY VERY TIRED AT SANTA'S LAND USA IN PUTNEY VT 78YEAROLD ARTHUR RUGGLES OF GREENFIELD MASS TOOK THIS WEEK OFF AFTER PLAYING SANTA SINCE MAY THE KIDS CAN GET TO YOU NOTES JANIE DONZELL WHO RUNS THE PARK'S GIFT SHOP A SUBSTITUTE IS FILLING IN FOR MR RUGGLES WHO HAS PLAYED SANTA FOR 30 YEARS AMID THE NINE REAL REINDEER AT SANTA'S WORKSHOP IN LAKE PLACID NY LUKE PATNODE IS FRANKLY EXHAUSTED FROM BEING SANTA FOR THE LAST SEVEN MONTHS I'VE HAD MORE THAN 10000 KIDS IN MY LAP SINCE MAY AND IT'S BEEN AN EMOTIONALLY AND PHYSICALLY DRAINING EXPERIENCE SAYS THE 66YEAROLD MR PATNODE MANY KIDS WANT THEIR PRESENTS INSTANTLY ONE LITTLE BOY HAD SUCH A TEMPER TANTRUM YOU COULD HAVE TRIPPED OVER HIS LOWER LIP WHEN HE DIDN'T GET HIS WAY MR PATNODE SAYS AND WHAT DO THE KIDS WANT THIS YEAR PYTHONS RATTLESNAKES ALLIGATORS PORSCHES JAGUARS AND DIAMONDS AMONG OTHER THINGS HE SAYS PLAYING SANTA IS A TRYING JOB AGREES NATHAN DOAN 75 WHO HAS PLAYED THE ROLE AT A COMMUNITY CHRISTMAS HOUSE IN BAY CITY MICH FOR 45 YEARS SINCE SEPTEMBER MR DOAN HAS BEEN KICKED IN THE SHINS AND HAD HIS FALSE BEARD OF SILVER YAK HAIR PULLED MANY TIMES IN PAST YEARS MR PATNODE AND MR DOAN HAVE SOMETIMES ACCEPTED OTHER SANTA JOBS DURING THE PRECHRISTMAS WEEK NOT THIS YEAR MR PATNODE SAYS HE'S GOING TO SLEEP LATE AND DRINK SEVERAL HOT TODDIES MR DOAN SAYS HE'S RELAXING IN A BIG CHAIR AND BOOB TUBING NEED THE REST HE ADDS IF SANTA KNEW THEN WHAT THEY DO NOW ABOUT THEIR DUTIES WOULD THEY DO IT AGAIN NOT ME SAYS MR PATNODE WHO WEIGHS 250 POUNDS AND SPORTS AN 11INCH CURLY WHITE BEARD WHEN I GOT THE JOB TWO YEARS AGO I DIDN'T REALIZE I'D HAVE TO DANCE EVERY DAY ON STAGE WITH THE ELVES I HATE DANCING WE'RE GLAD HE STAYED AFTER THE FIRST YEAR SAYS PUTZI JOST MARKETING DIRECTOR FOR SANTA'S WORKSHOP IT'S HARD TO GET A SANTA WHO'S PORTLY AND HAS A REAL BEARD 9312230077 931223 BUSINESS BRIEF COR THERAPEUTICS INC FIRM HAS RESEARCH ALLIANCE WITH ORTHO PHARMACEUTICAL COR THERAPEUTICS INC SOUTH SAN FRANCISCO CALIF ANNOUNCED A RESEARCH ALLIANCE WITH ORTHO PHARMACEUTICAL CORP THAT INCLUDES AN EQUITY INVESTMENT IN COR OF 8 MILLION TO 12 MILLION THE TWO COMPANIES WILL CONDUCT JOINT RESEARCH ON THE THROMBIN RECEPTOR A NATURALLY OCCURRING PROTEIN THE TWO COMPANIES EXPECT TO USE THE PROTEIN TO MAKE DRUGS TO TREAT CARDIOVASCULAR DISEASE INCLUDING STROKES AS WELL AS OSTEOPOROSIS AND NERVOUSSYSTEM DISORDERS THE DRUGS WILL ALSO BE USED IN WOUND HEALING ORTHO IS A SUBSIDIARY OF JOHNSON & JOHNSON NEW BRUNSWICK NJ COR ALSO AGREED TO SELL 8 MILLION OF ITS STOCK AT MARKET PRICE OVER THE NEXT 12 MONTHS TO AN AFFILIATED COMPANY JOHNSON & JOHNSON DEVELOPMENT CORP THE AFFILIATE WOULD BUY 4 MILLION MORE OF STOCK IF ORTHO EXTENDS THE RESEARCH AGREEMENT FOR AN ADDITIONAL THREE YEARS ON THE NASDAQ STOCK MARKET COR'S STOCK CLOSED AT 13 UP 50 CENTS 9312230076 931223 PARAMOUNT AND QVC SIGN TAKEOVER PACT BY JOHNNIE L ROBERTS AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK IN ANOTHER TWIST TO A THREEMONTH TAKEOVER BATTLE PARAMOUNT COMMUNICATIONS INC AGREED TO BE ACQUIRED BY QVC NETWORK INC UNTIL NOW A HOSTILE BIDDER AND TO ADVISE SHAREHOLDERS TO EMBRACE QVC'S 10 BILLION OFFER OVER VIACOM INC'S 95 BILLION BID BUT PARAMOUNT'S ACTION COULD PROVE TO BE ONLY A FLEETING AND SYMBOLIC VICTORY FOR QVC WHICH FIRST MOUNTED ITS HOSTILE BID FOR THE ENTERTAINMENT AND PUBLISHING GIANT IN SEPTEMBER IN AN EFFORT TO BREAK UP PARAMOUNT'S FRIENDLY AGREEMENT TO BE ACQUIRED BY VIACOM UNDER AUCTION RULES SET UP BY PARAMOUNT AFTER QVC WON A COURT CHALLENGE TO THE VIACOM AGREEMENT PARAMOUNT SHAREHOLDERS WILL BE PERMITTED TO DECIDE THEMSELVES WHETHER TO TENDER THEIR SHARES TO QVC OR VIACOM AND ONCE THE TENDER OFFERS BEGIN EACH BIDDER MAY REVISE ITS OFFER WITHIN 10 DAYS INDEED IN ANNOUNCING THE PACT WITH QVC PARAMOUNT SAID VIACOM INDICATED THAT IT WAS CONSIDERING RAISING ITS OFFER THE PACT MOREOVER CONTAINS NO BREAKUP FEES OR OTHER PROVISIONS TO BLOCK OTHER BIDDERS FROM JOINING THE AUCTION WHILE PARAMOUNT AND HOMESHOPPING COMPANY QVC WERE COMPLETING THEIR ACQUISITION PACT VIACOM WAS UNDERSTOOD TO STILL BE ENGAGED IN TENSE NEGOTIATIONS TO LINE UP A HEFTY CASH INFUSION TO SWEETEN ITS OFFER IN RECENT DAYS THE CABLETELEVISION COMPANY HAS BEEN SAID TO BE IN TALKS WITH TWO OF ITS PARTNERS NYNEX CORP AND BLOCKBUSTER ENTERTAINMENT CORP TO INCREASE THEIR COMBINED 18 BILLION INVESTMENT IN VIACOM BUT VIACOM HAS MAINTAINED A VIRTUAL NEWS BLACKOUT IN RECENT DAYS AND THE TWO PARTNERS HAVE DECLINED TO COMMENT PEOPLE INVOLVED IN THE TAKEOVER BATTLE SAY THEY WERE LEFT WITH THE IMPRESSION THAT VIACOM CHAIRMAN SUMNER REDSTONE IS ATTEMPTING TO RAISE AS MUCH AS 14 BILLION OF ADDITIONAL CASH FOR QVC TO HAVE WON TODAY DOESN'T MEAN ANYTHING IF MR REDSTONE ANYTIME IN THE NEXT 10 DAYS UPS THE BID SAID ONE PERSON INVOLVED IN THE BATTLE BUT QVC'S VICTORY NO MATTER HOW PERMANENT REPRESENTS A REMARKABLE TURN IN THE COURSE OF THE CONTEST FOR THE MOMENT IN SIGNING THE AGREEMENT WITH QVC THE PARAMOUNT BOARD TERMINATED THE SEPT 12 ACQUISITION PACT WITH ERSTWHILE FRIENDLY PARTNER VIACOM SUNDERING AT LEAST FOR NOW THE MARRIAGE MR REDSTONE ONCE VOWED WOULD NEVER BE TORN ASUNDER BY SOME ACCOUNTS IT WAS THE LOOMING THREAT OF A HOSTILE BID FOR PARAMOUNT BY QVC CHAIRMAN BARRY DILLER THAT SPARKED PARAMOUNT CHAIRMAN MARTIN S DAVIS TO FINALLY REACH A FRIENDLY DEAL WITH VIACOM AFTER YEARS OF ABORTED ATTEMPTS MOREOVER THE TWO MEN WERE SAID TO HAVE BEEN ON TENSE TERMS SINCE MR DILLER RESIGNED AS PARAMOUNT'S STUDIO CHIEF YEARS AGO AFTER CLASHING WITH MR DAVIS YET MR DAVIS JOINED THE BOARD IN A UNANIMOUS VOTE FOR THE ACQUISITION BY QVC AND ON MONDAY NIGHT MESSRS DAVIS AND DILLER MET AT THE OFFICES OF PARAMOUNT'S LAW FIRM SIMPSON THACHER & BARTLETT WHERE THEY PLEDGED TO PUT THE HEAT OF THE BATTLE BEHIND THEM ACCORDING TO MR DILLER MR DAVIS SAID THAT IF WE DID GET THE COMPANY HE WANTED TO BE SURE THERE WAS A SMOOTH TRANSITION MR DILLER SAID IN AN INTERVIEW WE BOTH ASSURED EACH OTHER THAT THE PROCESS WOULD GO BETTER THAN SMOOTH MR DILLER ADDED THAT HE TOLD MR DAVIS THAT MY BEHAVIOR TOWARD HIM WOULD BE IMPECCABLE QVC PLANS TO START ITS REVISED TENDER OFFER TODAY UNDER THE AUCTION RULES THE OFFER MUST BE KEPT OPEN UNTIL JAN 7 MR REDSTONE VIACOM'S CONTROLLING SHAREHOLDER HAS UNTIL THEN TO COME BACK WITH A HIGHER OFFER IF HE DOESN'T QVC WOULD BE FREE TO BUY PARAMOUNT SHARES TENDERED TO IT AND ACQUIRE THE COMPANY STOCK TRADERS REACTED ERRATICALLY TO THE FIRST WIRE SERVICE REPORTS OF THE PARAMOUNT BOARD'S ACTION WHICH WASN'T FORMALLY ANNOUNCED UNTIL AFTER THE MARKET'S CLOSE THINKING THAT THE TAKEOVER CONTEST MIGHT BE OVER SOME TRADERS QUICKLY BID UP THE PRICE OF VIACOM CLASS B SHARES BY 4 A SHARE BUT WHEN THEY REALIZED THE BATTLE WASN'T OVER VIACOM B SHARES SETTLED BACK TO CLOSE AT 46 A SHARE UP 875 CENTS ON THE AMERICAN STOCK EXCHANGE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PARAMOUNT STOCK FELL 625 CENTS TO 79625 FOLLOWING A 175ASHARE DROP TUESDAY ON FURTHER DISAPPOINTMENT THAT VIACOM DIDN'T EMERGE WITH A HIGHER BID QVC STOCK FELL 175 TO 4025 ON THE NASDAQ STOCK MARKET BEFORE TRADING WAS HALTED ON NEWS OF THE PARAMOUNT ENDORSEMENT A NASDAQ SPOKESMAN SAID QVC DIDN'T REOPEN BECAUSE THE MARKET DIDN'T GET A RESPONSE FROM QVC TO ITS INQUIRIES AS A RESULT OF THE STOCKPRICE MOVES QVC'S CASHANDSTOCK BID WAS VALUED YESTERDAY AT 10 BILLION OR 8303 THE VIACOM BID ASSUMING A PREFERREDSTOCK DISCOUNT SIMILAR TO THE ONE APPLIED TO QVC'S BID OF PREFERRED STOCK AND WARRANTS WAS WORTH 95 BILLION OR 7930 A SHARE PEOPLE FAMILIAR WITH VIACOM'S STRATEGY SAID THEY DOUBTED THAT VIACOM WOULD COME BACK WITH A NEW BID BEFORE CHRISTMAS INDEED SOME SUGGESTED THAT MR REDSTONE WAS DISGUSTED WITH THE PROTRACTED TAKEOVER BATTLE AND MIGHT NOT MAKE A NEW BID AT ALL HOWEVER TRADERS SAID THAT SUGGESTION MAY HAVE BEEN AN EFFORT TO DRIVE DOWN QVC STOCK EVEN FURTHER BY REINFORCING THE NOTION THAT QVC IS GOING TO WIN MEANWHILE VIACOM ISSUED A STATEMENT YESTERDAY IN RESPONSE TO YESTERDAY'S WALL STREET JOURNAL ARTICLE THAT SAID MR REDSTONE'S WIFE SUED HIM FOR DIVORCE LAST MONTH BUT WITHDREW THE SUIT THREE WEEKS LATER THE ARTICLE WHICH WAS BASED ON MASSACHUSETTS COURT RECORDS SAID THE ACTION RAISED QUESTIONS ABOUT WHETHER MR REDSTONE WHO CONTROLS 84 OF VIACOM'S VOTING STOCK AND A 76 ECONOMIC STAKE COULD ULTIMATELY LOSE CONTROL OF THE COMPANY IN A DIVORCE PROCEEDING IN THE STATEMENT GEORGE S ABRAMS PERSONAL ATTORNEY FOR THE REDSTONES REITERATED THAT THERE IS NO DIVORCE ACTION AT PRESENT BUT SAID THAT IN A HYPOTHETICAL DIVORCE ACTION THE LEGAL ARRANGEMENTS INVOLVING THE VIACOM STOCKHOLDINGS INCLUDING FAMILY TRUSTS WOULD MAKE SUCH A RESULT IMPOSSIBLE ACCORDING TO ONE PERSON FAMILIAR WITH MR REDSTONE'S ESTATE AND PERSONAL FINANCIAL ARRANGEMENTS THERE ARE VARIOUS TRUSTS AND A WILL SPECIFICALLY DESIGNED TO PREVENT ANY POSSIBILITY OF VIACOM'S CONTROL PASSING TO ANYONE OTHER THAN MR REDSTONE DURING HIS LIFETIME CONTROL CANNOT PASS FROM SUMNER IN A DIVORCE ACTION THE PERSON SAID AFTER HIS DEATH CONTROL WOULD PASS TO HIS FAMILY HE ADDED IT ISN'T CLEAR HOWEVER WHETHER SUCH A TRUST WOULD BE INVIOLATE IN A DIVORCE PROCEEDING THE REDSTONE DIVORCE ACTION WAS FILED AND WITHDRAWN WHILE VIACOM'S TENDER OFFER FOR PARAMOUNT WAS OPEN WHEN ASKED WHETHER PARAMOUNT HAD BEEN AWARE OF THE ACTION A PARAMOUNT SPOKESMAN DECLINED TO RESPOND EXCEPT TO SAY THE QUESTION WAS OFFENSIVE 9312230075 931223 BANKS MAY NEED TO CARRY CMOS AT MARKET VALUE BY LEE BERTON AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK ACCOUNTING REGULATORS SAY CERTAIN MORTGAGE SECURITIES AND SOCALLED BRADY BONDS HELD BY BANKS MAY HAVE TO BE CARRIED AT MARKET VALUE IF THEY PROVE TO BE HIGHRISK INVESTMENTS ROBERT WILKINS A PROJECT MANAGER OF THE FINANCIAL ACCOUNTING STANDARDS BOARD SAID THE COLLATERALIZED MORTGAGE OBLIGATIONS MUST BE CARRIED AT MARKET VALUE IF A REASONABLY POSSIBLE CHANGE IN INTEREST RATES COULD CAUSE THEM TO BECOME A HIGHRISK INVESTMENT CMOS ARE BONDS WITH DIFFERENT MATURITIES THAT ARE CARVED UP FROM A POOL OF MORTGAGEBACKED SECURITIES CERTAIN CMOS ARE CONSIDERED HIGH RISK INVESTMENTS IF CHANGES IN INTEREST RATES CAUSE SEVERE SWINGS IN THEIR PRICES BRADY BONDS ARE ISSUED BY DEVELOPING COUNTRIES IN LIEU OF LOANS OWED TO COMMERCIAL BANKS MR WILKINS NOTED THAT AN FASB RULE EFFECTIVE FOR 1994 FINANCIAL STATEMENTS MAKES IT DIFFICULT FOR BANKS TO HOLD SUCH INVESTMENTS AT ORIGINAL COST IF FUTURE INTERESTRATE CHANGES WOULD MAKE THEM HIGHRISK HOLDINGS THE FASB RULE WAS ISSUED LAST MAY AND IS PART OF A BROADER MOVE BY THE ACCOUNTING RULEMAKING BODY TO REQUIRE BANKS TO HOLD SECURITIES AT THEIR MARKET VALUE RATHER THAN THE PRICES AT WHICH THEY WERE PURCHASED THAT'S TO PREVENT THE PRACTICE OF CHERRYPICKING KEEPING CERTAIN BONDS AT ORIGINAL COST WHILE TRADING CERTAIN BONDS THAT RISE IN MARKET PRICE TO BOOK PROFITS THE NEW RULES GO INTO EFFECT AT YEAR END AND BANKS ARE NOW PORING THROUGH THEIR PORTFOLIOS TO DETERMINE WHICH SECURITIES SHOULD BE CARRIED AT MARKET VALUE BANKS ARE BIG BUYERS OF CMOS BECAUSE THEY YIELD MORE THAN US TREASURY SECURITIES ACCORDING TO FERGUSON & CO 6387 BANKS OWN CMOS OR MORE THAN HALF THE INDUSTRY HOLDING 168 BILLION AS OF JUNE 30 IT'S UNCLEAR THOUGH HOW BANKS WOULD BE AFFECTED CHEMICAL BANKING CORP FOR INSTANCE DOESN'T EXPECT THE RULE TO GET IN THE WAY OF PUTTING THE BULK OF ITS CMOS IN THE HELDTOMATURITY ACCOUNT SAYS PETER TOBIN CHIEF FINANCIAL OFFICER HE SAYS THE NET EFFECT OF FASB'S NEW RULES WILL BE POSITIVE FOR SHAREHOLDERS A SPOKESWOMAN FOR THE OFFICE OF THE COMPTROLLER OF THE CURRENCY SAID THE AGENCY IS LOOKING AT THE ISSUE BUT BANKS SHOULD STILL BE ABLE TO HOLD CERTAIN CMOS UNTIL MATURITY BANKS HAVE ASKED THAT BRADY BONDS BE CONSIDERED AS LOANS WHICH AREN'T SUBJECT TO THE FASB RULE MR WILKINS SAID THAT THE FASB BELIEVES THESE BONDS SHOULD BE VALUED UNDER THE RULE'S CRITERIA A HANDFUL OF BIG BANKS COULD BE AFFECTED BY THE BRADYBOND RULING BUT BANKS SAY IT'S TOO SOON TO SAY WHAT THE IMPACT WILL BE 9312230074 931223 BUSINESS BRIEF OLSTEN CORP LIFETIME DEAL DEBT IS CUT THROUGH NEW CREDIT FACILITY OLSTEN CORP SAID IT NEGOTIATED A 200 MILLION REVOLVING CREDIT FACILITY ALLOWING IT TO REDUCE DEBT ASSOCIATED WITH ITS ACQUISITION THIS YEAR OF LIFETIME CORP OLSTEN A WESTBURY NY TEMPORARY HELP AND HEALTHSERVICES CONCERN SAID THAT IT USED 40 MILLION OF THE CREDIT FACILITY ALONG WITH PROCEEDS OF CONVERTIBLE DEBENTURES IT ISSUED IN MARCH TO REDUCE THE DOUBLEDIGIT COUPON DEBT ACQUIRED WHEN OLSTEN BOUGHT THE BOSTONBASED LIFETIME THE MOVE COMPLETED PAYMENT OF 137 MILLION OF MERGERRELATED DEBT OLSTEN SAID LEAVING 13 MILLION STILL TO BE PAID OLSTEN ASSUMED A TOTAL OF 150 MILLION IN DEBT WHEN IT BOUGHT LIFETIME FOR ABOUT 450 MILLION IN STOCK THIS YEAR OLSTEN ALSO SAID IT SOLD TWO FORMER LIFETIME UNITS NATIONAL MENTOR INC WITH ANNUAL SALES OF 39 MILLION WAS SOLD TO A PRIVATE INVESTMENT GROUP INCLUDING MEMBERS OF THE UNIT'S MANAGEMENT FOR NET PROCEEDS TO OLSTEN OF ABOUT 16 MILLION IN CASH AND NOTES LIFETIME HEALTH CARE LTD WITH NET SALES OF ABOUT 13 MILLION WAS SOLD SEPARATELY WITH PROCEEDS TO OLSTEN OF ABOUT 1 MILLION 9312230073 931223 BUSINESS BRIEF MB COMMUNICATIONS INC CONCERN SAYS IT REFINANCED DEBT AND REVOLVING CREDIT MB COMMUNICATIONS INC SAID IT HAS REFINANCED ITS SENIORTERM DEBT AND REVOLVINGCREDIT FACILITY THE LAWRENCE PABASED COMPUTER PRODUCTS CONCERN SAID IT SIGNED A NEW AGREEMENT WITH MELLON BANK NA A UNIT OF MELLON BANK CORP PITTSBURGH WHICH PROVIDES A 40 MILLION CREDIT FACILITY THE COMPANY SAID THE NEW PACT PROVIDES MORE FLEXIBILITY IN THE USE OF PROCEEDS AND A REDUCTION IN INTEREST RATES AND FEES FROM ITS PREVIOUS CREDIT AGREEMENT MB COMMUNICATIONS IS THE PARENT OF BLACK BOX CORP A DIRECT MARKETER OF DATA COMMUNICATIONS NETWORKING AND RELATED COMPUTER PRODUCTS AND MICOM COMMUNICATIONS CORP WHICH DESIGNS MAKES AND MARKETS WIDEAREA NETWORKING PRODUCTS FOR SMALL AND MEDIUMSIZE NETWORK USERS PRIMARILY UNDER THE MARATHON AND NETRUNNER BRAND NAMES 9312230072 931223 POLITICS & POLICY CLINTON INVESTMENT FILES ARE SPARKING TENSIONS AMONG WHITE HOUSE JUSTICE OFFICIALS CONGRESS BY BRUCE INGERSOLL AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON BY ALL ACCOUNTS THEY AREN'T MUCH TO LOOK AT JUST A FEW FILE FOLDERS LOCKED AWAY IN THE OFFICES OF A POWERHOUSE LAW FIRM HERE BUT THOSE FILES WHICH CONTAIN INFORMATION ABOUT BILL CLINTON'S BUSINESS DEALINGS WHEN HE WAS GOVERNOR OF ARKANSAS ARE SPARKING AN INCREASINGLY BITTER CONFRONTATION AMONG THE WHITE HOUSE THE JUSTICE DEPARTMENT AND CONGRESS THE DOCUMENTS PERTAIN TO THE INVESTMENT THAT MR CLINTON AND HILLARY RODHAM CLINTON MADE IN A REALESTATE VENTURE CALLED WHITEWATER DEVELOPMENT CORP THE WHITE HOUSE THIS WEEK ACKNOWLEDGED THAT THE DOCUMENTS WERE FOUND IN AND REMOVED FROM THE OFFICE OF WHITE HOUSE DEPUTY COUNSEL AND CLINTON FAMILY LAWYER VINCENT FOSTER ON JULY 22 JUST TWO DAYS AFTER MR FOSTER KILLED HIMSELF UNLIKE MR FOSTER'S PERSONAL PAPERS WHICH THE WHITE HOUSE SENT TO THE FOSTER FAMILY'S LAWYER THE FILES RELATING TO THE CLINTONS AND WHITEWATER WERE FORWARDED TO WILLIAMS & CONNOLLY THE FIRST FAMILY'S LAWYERS AND THERE THE CLINTONS HAD HOPED THEY WOULD REMAIN AND BE FORGOTTEN BUT OFFICIAL INTEREST IN THE FILES IS INTENSIFYING AN ADMINISTRATION LAWENFORCEMENT OFFICIAL SAYS JUSTICE DEPARTMENT OFFICIALS MAY SEEK A SUBPOENA TO FORCE DISCLOSURE OF THE FINANCIAL RECORDS THE JUSTICE DEPARTMENT IS LOOKING AT WHITEWATER AS PART OF A BROADER CRIMINAL AND CIVIL PROBE INTO MADISON GUARANTY SAVINGS & LOAN A FAILED LITTLE ROCK THRIFT OWNED BY JAMES MCDOUGAL WHO WAS THE CLINTONS' BUSINESS PARTNER IN WHITEWATER AND A POLITICAL SUPPORTER OF MR CLINTON'S WHEN HE WAS GOVERNOR MEANWHILE REPUBLICANS ON THE SENATE AND HOUSE BANKING COMMITTEES ARE EXPRESSING INTEREST IN WHAT THE FILES MAY CONTAIN YESTERDAY REPUBLICAN REP JIM LEACH OF IOWA CALLED ON ATTORNEY GENERAL JANET RENO TO APPOINT A SPECIAL COUNSEL TO INVESTIGATE THE MCDOUGAL AND FOSTER MATTERS MR LEACH AND GOP REP TOBY ROTH OF WISCONSIN ALSO HAVE CALLED ON HENRY GONZALEZ THE IRASCIBLE TEXAS DEMOCRAT WHO CHAIRS THE HOUSE BANKING COMMITTEE TO HOLD HEARINGS INTO MR MCDOUGAL'S USE OF HIS FAILED SAVINGSANDLOAN IN AN INTERVIEW WITH WIRESERVICE REPORTERS YESTERDAY THE PRESIDENT SAID THAT OF COURSE WE'LL DO WHAT WE CAN TO COOPERATE WITH INVESTIGATORS AND THE WHITE HOUSE'S CHIEF OF STAFF THOMAS MCLARTY ALSO TOLD REPORTERS WE WILL COOPERATE WITH ANY OFFICIAL REVIEW OR INVESTIGATION IN ANY WAY WE CAN BUT BOTH MEN STOPPED SHORT OF PROMISING TO RELEASE THE FILES TO INVESTIGATORS AND THEIR COMMENTS CAME ONLY A DAY AFTER MRS CLINTON WHO REPRESENTED MR MCDOUGAL WHEN SHE WAS A PARTNER AT ROSE LAW FIRM IN LITTLE ROCK SAID SHE SEES NO REASON WHY THE FILES SHOULD BE MADE PUBLIC SOME OF THE US PARK POLICE DETECTIVES WHO WERE CHARGED WITH INVESTIGATING MR FOSTER'S DEATH HE SHOT HIMSELF ON FEDERAL PARKLAND IN VIRGINIA ARE NOW COMPLAINING THAT THE WHITE HOUSE IMPEDED THEIR PROBE WE DIDN'T HAVE ACCESS TO ANYTHING THAT THE CHIEF COUNSEL DEEMED WASN'T PERTINENT SAYS ONE PARK POLICE OFFICER REFERRING TO WHITE HOUSE COUNSEL BERNARD NUSSBAUM HE REVIEWED EVERYTHING NOT ONE REPRESENTATIVE OF GOVERNMENT INCLUDING THE FBI WAS ALLOWED TO SEE THOSE THINGS MR NUSSBAUM CONDUCTED AN INVENTORY OF PAPERS DOCUMENTS AND OTHER ITEMS IN MR FOSTER'S OFFICE ON JULY 22 AMONG THE ITEMS WERE THE WHITEWATER FILES BUT THE PARK POLICE AND FEDERAL BUREAU OF INVESTIGATION WEREN'T PERMITTED TO INSPECT THEM THE ONLY DOCUMENTS EVER REVIEWED BY THE INVESTIGATORS WERE CERTAIN PERSONAL PAPERS THAT JAMES HAMILTON THE FOSTER FAMILY ATTORNEY ALLOWED THEM TO PERUSE IN HIS LAW OFFICE THE PARK POLICE DETECTIVE CALLS THIS LACK OF ACCESS TO DOCUMENTS A JOKE THE WHITE HOUSE CONTENDS THAT MR NUSSBAUM DID NOTHING IMPROPER AND THAT HE WAS MERELY PROTECTING DOCUMENTS THAT WERE SUBJECT TO THE LAWYERCLIENT PRIVILEGE OR THE EXECUTIVE PRIVILEGE OF THE PRESIDENT QUESTIONS ALSO SURROUND THE ACTIONS OF SEVERAL OTHER WHITE HOUSE AIDES IT HAS BEEN REPORTED THAT MAGGIE WILLIAMS MRS CLINTON'S CHIEF OF STAFF AND PATSY THOMASSON AN ADMINISTRATIVE AIDE ENTERED MR FOSTER'S OFFICE AS DID MR NUSSBAUM ONLY HOURS AFTER MR FOSTER KILLED HIMSELF YESTERDAY A SPOKESWOMAN FOR MS WILLIAMS SAID SHE WANDERED BRIEFLY INTO MR FOSTER'S OFFICE AFTER BEING ALERTED TO THE DEATH BY WHITE HOUSE AIDE MARK GEARAN THE SPOKESWOMAN LISA CAPUTO SAID MS WILLIAMS WAS ATTRACTED BY A LIGHT STILL ON IN MR FOSTER'S OFFICE THAT SHE ENTERED THE OFFICE ONLY BRIEFLY WAS LOOKING FOR NOTHING AND TOOK NOTHING WITH HER PARK POLICE DETECTIVES CONTEND THAT THE WHITE HOUSE SHOULDN'T HAVE WAITED UNTIL ABOUT 10 AM THE NEXT MORNING TO POST A SECRET SERVICE AGENT AT THE DOOR TO MR FOSTER'S OFFICE THEY ALSO CONTEND THAT MR NUSSBAUM'S SECRETARY SHOULDN'T HAVE BEEN ALLOWED TO ENTER THE OFFICE EARLY THAT MORNING SUPPOSEDLY TO STRAIGHTEN PAPERS IT WAS MR NUSSBAUM WHO LATER SENT THE WHITEWATER DOCUMENTS FOUND IN THE OFFICE TO WILLIAMS & CONNOLLY THE CLINTONS' LAWYER AT WILLIAMS & CONNOLLY DAVID KENDALL REFUSED TO COMMENT ON THE BATTLE OVER THE WHITEWATER DOCUMENTS SO FAR IT'S UNCLEAR HOW THE WHITE HOUSE PLANS TO RESPOND IF AND WHEN THERE IS ANY FORMAL PROCEEDING TO GET HOLD OF THE DOCUMENTS WE KNOW OF NO JUSTICE DEPARTMENT REQUEST FOR ANY DOCUMENTS SAID WHITE HOUSE AIDE BRUCE LINDSEY WHO INTENDS TO BEGIN REVIEWING VARIOUS BUSINESS DOCUMENTS OF THE CLINTONS AND HAS BEEN FIELDING QUESTIONS ON THE WHITEWATER CONTROVERSY DEPUTY WHITE HOUSE COUNSEL JOEL KLEIN AND MR KENDALL HAVE ALSO BEEN WORKING ON THE MATTER MR LINDSEY SAID THAT THE CLINTONS LOST APPROXIMATELY 70000 ON THE WHITEWATER INVESTMENT AND THAT THEY GOT NO BENEFIT FROM THIS CORPORATION HE ADDED THE CLINTONS HAVE ADMITTED FROM THE BEGINNING THAT THEY HAVE LIMITED DOCUMENTATION WE CAN'T ANSWER ALL QUESTIONS ABOUT WHITEWATER BECAUSE WE DON'T KNOW THE ANSWERS THE CLINTONS DID NOT KEEP THE CORPORATE RECORDS AND WEREN'T CORPORATE OFFICERS TO TRY TO ANSWER QUESTIONS WE DON'T HAVE ANSWERS TO WOULD BE FOOLHARDY REP GONZALEZ IN AN INTERVIEW SAID HE SO FAR SEES NO REASON FOR HIS COMMITTEE TO HOLD HEARINGS INTO THE MATTER HEARINGS HAVE BEEN SOUGHT NOT ONLY BY HOUSE REPUBLICANS BUT ALSO BY SENATE REPUBLICANS SUCH AS MINORITY LEADER ROBERT DOLE OF KANSAS MR GONZALEZ WHO SPEARHEADED THE INVESTIGATION INTO REPUBLICAN ADMINISTRATIONS' PREGULF WAR DEALINGS WITH IRAQ SAID HEARINGS AREN'T NEEDED BECAUSE THE MCDOUGAL CASE RAISES NO NEW LEGISLATIVE ISSUES HE ALSO DISMISSED GOP REP ROTH'S SUGGESTION THAT HE'S BENDING TO PRESSURE FROM HIS PARTY TO NOT LOOK INTO THE MATTER IT'S SO RIDICULOUS MR GONZALEZ SAID FROM HIS HOME IN SAN ANTONIO I HAVE PROBABLY LESS RELATIONSHIP WITH THIS ADMINISTRATION THAN I HAD WITH PRESIDENT BUSH I HAVEN'T HEARD FROM THIS ADMINISTRATION HE CHARGED THAT THE DAVID DUKE WING OF THE REPUBLICAN PARTY IS TRYING TO MAKE A BIG DO TO EMBARRASS THE CLINTONS AND TRYING TO EXCULPATE THE PAST PRESIDENT AND THAT REP LEACH A MODERATE IS BEING PUSHED TO ACT BY EXTREMISTS MR LEACH INSISTS THAT SERIOUS ISSUES ARE AT STAKE AND THAT THE CLINTONS' BUSINESS AND POLITICAL DEALINGS WITH MR MCDOUGAL'S THRIFT DESERVE FULL INVESTIGATION AS THE CONTROVERSY OVER THE AFTERMATH OF MR FOSTER'S DEATH AND THE DOCUMENTS DEEPENS PRESIDENT CLINTON IS FACED WITH A SET OF CONFOUNDING POLITICAL AND LEGAL QUESTIONS IF HE DETERMINES HE WANTS TO KEEP THE DOCUMENTS SECRET THE WHITE HOUSE COULD ATTEMPT TO ASSERT THAT THEY ARE COVERED BY EXECUTIVE PRIVILEGE BUT SUCH A MOVE WOULD BE LEGALLY QUESTIONABLE AND POLITICALLY RISKY ALREADY THE WHITE HOUSE IS CONFRONTING ALLEGATIONS OF STONEWALLING THERE'S SOMEBODY WHO IS GOING THROUGH A LOT OF CHANGES TO KEEP THIS FROM UNDER THE MICROSCOPE A FEDERAL LAWENFORCEMENT OFFICIAL SAID YESTERDAY IN TERMS OF LEGAL PRECEDENT THE MOST GERMANE CASE IS WATERGATE WHEN PRESIDENT NIXON PLEADED EXECUTIVE PRIVILEGE ON THE WHITE HOUSE TAPES AND THE SUPREME COURT IN THE SUMMER OF 1974 RULED AGAINST HIM HOWEVER THE COURT DIDN'T RULE OUT ANY SUCCESSFUL PRESIDENTIAL CLAIM OF EXECUTIVE PRIVILEGE BUT THE ISSUE FACING PRESIDENT CLINTON REACHES FAR BEYOND LEGALITIES REFUSING TO TURN OVER THE DOCUMENTS ONLY FUELS AN IMPRESSION OF OBFUSCATING AND STONEWALLING EXTENDING HIS POLITICAL TROUBLES THAT IS THE LESSON OF WATERGATE SAYS THE UNIVERSITY OF WISCONSIN'S STANLEY KUTLER A LEGAL HISTORIAN DON'T LIE DON'T STONEWALL MR KUTLER SAID POINTING OUT THAT BOTH MR NUSSBAUM AND MRS CLINTON SHOULD KNOW THIS LESSON THEY WERE THERE WORKING AS LAWYERS ON THE HOUSE JUDICIARY COMMITTEE'S WATERGATE INVESTIGATION OTHER PRESIDENTS OF COURSE HAVE FACED CONTROVERSIES INVOLVING PAST BUSINESS DEALINGS AND PERSONAL PAPERS AND IN BOTH CASES CANDOR WON OUT JIMMY CARTER FACED QUESTIONS ABOUT THE FINANCING OF HIS FAMILY'S PEANUT WAREHOUSE IN GEORGIA A SPECIAL COUNSEL WAS APPOINTED AND PRESIDENT CARTER AGREED TO GIVE A DEPOSITION LATER THE INDEPENDENT COUNSEL PROBING THE IRANCONTRA SCANDAL ASKED TO SEE PRESIDENT BUSH'S DIARIES AFTER MR BUSH SOUGHT OUTSIDE COUNSEL THE DIARIES WERE MADE AVAILABLE 9312230071 931223 COMMODITIES SOYBEAN PRICES JUMP BECAUSE OF HARVEST REPORT INDICATING US CROP IS YIELDING LESS EDIBLE OIL BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SOYBEAN PRICES JUMPED AMID A REPORT THAT THE RECENTLY HARVESTED US CROP IS SUCH POOR QUALITY IT IS YIELDING LESS EDIBLE OIL THAN NORMAL THE LOW QUALITY OF THE MIDWEST SOYBEAN CROP WHICH WAS SWAMPED BY RECORD SUMMER RAINFALL IS FORCING US PROCESSORS TO CRUSH A RECORD AMOUNT OF SOYBEANS IN ORDER TO PRODUCE AN ADEQUATE SUPPLY OF OIL MUCH OF WHICH IS USED FOR COOKING SOYBEANS ARE ALSO CRUSHED TO MAKE MEAL ACCORDING TO A MONTHLY GOVERNMENT SURVEY US PROCESSORS CRUSHED A RECORD 1143 MILLION BUSHELS OF SOYBEANS IN NOVEMBER UP SLIGHTLY FROM THE SAME 1992 MONTH DEMAND WAS STRONG PRIMARILY BECAUSE THE AVERAGE BUSHEL OF SOYBEANS GENERATED ONLY 1074 POUNDS OF OIL NORMALLY A BUSHEL OF SOYBEANS PRODUCES MORE THAN 11 POUNDS OF OIL THE LARGE NUMBER OF US CATTLE BEING FATTENED ON FEEDLOTS IS ALSO FUELING DEMAND FOR SOYBEAN MEAL WHICH IS A BIG PART OF LIVESTOCK RATIONS THE FEEDLOT POPULATION IN THE SEVEN MAJOR RANCH STATES IS THE BIGGEST SINCE 1973 THE REPORT TRIGGERED A SCRAMBLE FOR GOOD QUALITY SOYBEANS AND DROVE UP FUTURES PRICES AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR MARCH DELIVERY ROSE 10 CENTS A BUSHEL TO SETTLE AT 70475 A BUSHEL EXCESSIVE SUMMER RAIN SHRANK THE US SOYBEAN CROP BY 16 TO 183 BILLION BUSHELS COMPARED WITH THE 1992 HARVEST THE PROSPECTS FOR LARGE SOUTH AMERICAN SOYBEAN HARVESTS IN APRIL HAVE HELPED TO MUTE THE RISE IN SOYBEAN PRICES SINCE THE US HARVEST NOW THE GOVERNMENT REPORT SIGNALS THAT QUALITY PROBLEMS WILL LIFT US SOYBEAN PRICES EVEN HIGHER DANIEL W BASSE DIRECTOR OF RESEARCH AT AGRESOURCE CO CHICAGO SAID THE SURVEY INDICATES THAT THE PRICE OF THE MARCH SOYBEAN CONTRACT COULD RISE TO ABOUT 720 A BUSHEL DURING THE NEXT FEW WEEKS IN ORDER TO RATION SUPPLIES CORN AND WHEAT PRICES SETTLED MIXED JOE VICTOR DIRECTOR OF MARKETING AT ALLENDALE INC CRYSTAL LAKE ILL SAID TRADERS ARE BEGINNING TO FOCUS ON SIGNS THAT CHINA IS READY TO TAKE DELIVERY OF SEVERAL HUNDREDS OF THOUSANDS OF METRIC TONS OF US WHEAT THAT IT HAD ALREADY ORDERED ACCORDING TO TRADERS THE DELIVERY HAS BEEN SLOWED BY TIGHT CASH AS WELL AS CHINESE CONCERNS THAT A MOLD MIGHT BE IN THE US WHEAT THE SLOW PACE OF US WHEAT EXPORTS TO CHINA HAS BEEN A DRAG ON WHEAT PRICES AMONG OTHER THINGS THE US GOVERNMENT IS DEBATING WHETHER CHINA'S HUMANRIGHTS RECORD DISQUALIFIES IT FROM PREFERENTIAL TRADE TREATMENT MR VICTOR SAID CHINA IS BUYING FOREIGN WHEAT AT A RATE OF ROUGHLY SIX MILLION METRIC TONS ANNUALLY TRADERS GENERALLY EXPECT THE US TO GET ABOUT ONETHIRD OF THAT BUSINESS IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD FUTURES PRICES EASED AS INVESTORS TOOK PROFITS AHEAD OF THE HOLIDAY WEEKEND AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS DOWN 210 AN OUNCE TO 38720 AN OUNCE MIDDLE EASTERN DEMAND WHICH HAS BEEN SO INSTRUMENTAL IN SUPPORTING PRECIOUSMETALS PRICES DURING THEIR RECENT RALLY ERODED AS THE INVESTOR SYNDICATES THAT HAVE BEEN BUYING SILVER AND GOLD SOLD IT INSTEAD BERNARD SAVAIKO METALS ANALYST FOR PAINEWEBBER INC SAID THE SELLING WAS PROBABLY TIED TO THE FACT THAT THE LONDON METALS EXCHANGE WHERE THESE INVESTORS DO MOST OF THEIR TRADING WILL BE CLOSED MONDAY AND TUESDAY AT THE MOMENT THERE SEEMS TO BE A 390TO392 LID THAT THE GOLD MARKET IS HAVING TROUBLE BREAKING THROUGH MR SAVAIKO SAID ENERGY CRUDE OIL AND HEATING OIL FUTURES PRICES SETTLED SHARPLY HIGHER YESTERDAY REACTING TO BULLISH US OIL INVENTORY DATA AND HOPES OF OUTPUT CUTS BY MAJOR OILPRODUCING NATIONS TRADERS SAID A REPORT BY THE AMERICAN PETROLEUM INSTITUTE LATE TUESDAY SHOWED SHARP DROPS IN CRUDE OIL AND DISTILLATE INVENTORIES LAST WEEK ALSO PROPPING UP PRICES WAS A PLEDGE BY GULF COOPERATION COUNCIL MEMBERS MANY OF WHOM ARE ALSO MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO CUT OIL OUTPUT TO BOOST PRICES IF ALL PRODUCING STATES INSIDE AND OUTSIDE OPEC AGREE TO LOWER OUTPUT TRADERS SAID THE VAGUENESS AND CONDITIONALITY OF THE COUNCIL'S STATEMENT CAST STRONG DOUBTS ON WHETHER ANY CUTS WILL BE MADE BUT THEY SAID THE NEWS ADDED FUEL TO A MARKET ALREADY POISED FOR A RALLY 9312230070 931223 BUSINESS BRIEF PENTAIR INC COMPANY AGREES TO ACQUIRE FRIED KRUPP'S SCHROFF UNIT PENTAIR INC SAID IT DEFINITIVELY AGREED TO PAY ABOUT 150 MILLION TO ACQUIRE THE SCHROFF GROUP FROM FRIED KRUPP AG HOESCHKRUPP OF GERMANY SCHROFF A MAKER OF CABINETS CASES AND THE LIKE FOR THE ELECTRONICS INDUSTRY WILL HAVE SALES IN 1993 OF ABOUT 160 MILLION PENTAIR SAID BASED IN STRAUBENHARDT GERMANY IT HAS APPROXIMATELY 1400 EMPLOYEES AT OPERATIONS IN EUROPE THE UK THE US JAPAN AND TAIWAN A SPOKESMAN SAID THE ACQUISITION IS PROFITABLE BUT DECLINED TO ELABORATE PENTAIR BASED IN ST PAUL MINN MANUFACTURES A VARIETY OF INDUSTRIAL PRODUCTS POWER TOOLS AND PAPER PRODUCTS IT CALLED SCHROFF EUROPE'S BIGGEST MAKER OF THE SOCALLED ELECTRONIC ENCLOSURES WHICH ARE USED BY INDUSTRIES THAT NEED TO HOUSE ELECTRONICS SUCH AS MEDICAL EQUIPMENT AND COMPUTER MAKERS PENTAIR SAID IT EXPECTS TO CLOSE THE TRANSACTION IN THE 1994 FIRST QUARTER 9312230069 931223 BUSINESS BRIEF SHARPER IMAGE CORP STOCK PRICE JUMPS BY 37 ON REPORT OF STRONG SALES SHARPER IMAGE CORP SAID DECEMBER SALES ARE RUNNING AHEAD OF EXPECTATIONS CAUSING ITS STOCK TO SURGE 37 CRAIG WOMACK PRESIDENT OF THE SAN FRANCISCOBASED RETAILER SAID CATALOG SALES ARE EXPECTED TO INCREASE 15 FROM YEAREARLIER FIGURES WHILE SAMESTORE SALES ARE LIKELY TO RISE 4 IF JANUARY SALES PERFORM AT THE CURRENT RATE EARNINGS FOR THE YEAR ENDING JAN 31 ARE EXPECTED TO INCREASE 200 TO 300 MR WOMACK SAID IN A NEWS RELEASE IN THE PRIOR YEAR SHARPER IMAGE REPORTED NET INCOME OF 359000 OR FOUR CENTS A SHARE ON SALES OF 1495 MILLION THE COMPANY'S STOCK ROSE 1375 A SHARE YESTERDAY IN HEAVY TRADING ON THE NASDAQ STOCK MARKET CLOSING AT 5125 MR WOMACK SAID THE BIGGEST SELLERS THIS SEASON INCLUDE A MOTORIZED TIE RACK A SOPHISTICATED TOOTHCARE PRODUCT AND AN ANTISNORING DEVICE 9312230068 931223 INTERNATIONAL BRIEF SHARP CORP JAPANESE COMPANY INCREASES FUNDS TO MAKE LCDS BY 20 LOOKING TO KEEP UP WITH GROWING DEMAND FOR LIQUID CRYSTAL DISPLAYS SHARP CORP DECIDED TO STEP UP INVESTMENT IN TURNING OUT THE DEVICES A SPOKESMAN FOR THE JAPANESE ELECTRONICS MAKER SAID OVER THE NEXT TWO TO THREE YEARS SHARP WILL INVEST 100 BILLION YEN 8993 MILLION UP 20 FROM THE PRIOR PLAN HE SAID IN OCTOBER THE COMPANY WHICH HAS 40 OF THE GLOBAL MARKET FOR LCDS DECIDED TO INVEST 80 BILLION YEN THROUGH MARCH 1996 IN MAKING THE DEVICES WHILE JAPAN'S LONG RECESSION HAS LED COMPANIES TO CUT BACK CAPITAL INVESTMENT FOR TWO TO THREE YEARS INVESTMENT IN LCDS AND SEMICONDUCTORMAKING EQUIPMENT HAS INCREASED AS OF THE START OF FALL SHARP HAD A BUDGET FOR CAPITAL INVESTMENT FOR THE YEAR ENDING MARCH 31 OF 85 BILLION YEN UP 53 FROM A YEAR EARLIER THE BUDGET INCLUDED 25 BILLION YEN FOR LCD FACILITIES AND 30 BILLION YEN FOR FACILITIES INVOLVED WITH SEMICONDUCTORS 9312230067 931223 INTERNATIONAL BRIEF FERRANTI INTERNATIONAL LTD MANAGERS ARE COMPILING BID FOR UK ELECTRONICS FIRM FERRANTI INTERNATIONAL LTD A BRITISH ELECTRONICS CONCERN THAT WENT INTO VOLUNTARY RECEIVERSHIP EARLY THIS MONTH MIGHT BE BOUGHT BY A GROUP OF ITS SENIOR MANAGERS JOINT RECEIVERS JOHN TALBOT AND MURDOCH MCKILLOP OF ACCOUNTING FIRM ARTHUR ANDERSEN & CO WELCOMED A STATEMENT FROM MANAGERS OF FERRANTI THAT THEY ARE IN THE PROCESS OF PUTTING TOGETHER A BID PHIL BURTON MARKETING DIRECTOR OF FERRANTI IS LEADING OTHER MANAGERS IN COMPILING A CONSORTIUM BID HE SAID IN A STATEMENT THAT INITIAL DISCUSSIONS WITH THE RECEIVERS AND POTENTIAL PARTNERS FROM THE UNITED KINGDOM AND ELSEWHERE HAVE BEEN ENCOURAGING MR BURTON EXPECTS THAT A FORMAL OFFER WILL BE MADE IN FEBRUARY THE RECEIVERS SAID IN A SEPARATE STATEMENT THAT THEY HAVE BEEN APPROACHED BY A LARGE NUMBER OF UK AND OVERSEAS GROUPS THAT HAVE EXPRESSED AN INTEREST IN ACQUIRING FERRANTI BUSINESSES THEY WILL CONSIDER OFFERS OVER THE NEXT FEW WEEKS 9312230066 931223 LAW JUDGE STALLS LORENZO'S ATTEMPT TO LAUNCH AIRLINE BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FORMER TEXAS AIR CORP CHAIRMAN FRANK LORENZO LOST ANOTHER BATTLE IN HIS EFFORT TO START A NEW AIRLINE AS AN ADMINISTRATIVE LAW JUDGE RECOMMENDED FOR A SECOND TIME THAT MR LORENZO STAY GROUNDED THE DECISION BY ADMINISTRATIVE LAW JUDGE ROBERT BARTON WAS MORE SWEEPING THAN HIS RECOMMENDATION LAST SEPTEMBER WHEN HE SAID MR LORENZO'S NEW COMPANY ATX INC SHOULD BE DENIED A CERTIFICATE TO FLY BECAUSE COMPANY OFFICIALS HAD DISOBEYED THE LAW JUDGE DURING THE COURT PROCEEDINGS THIS TIME THE TRANSPORTATION DEPARTMENT OFFICIAL FOUND ATX DIDN'T HAVE THE REQUIRED AMOUNT OF MANAGERIAL COMPETENCE HE CITED A PATTERN OF SAFETY VIOLATIONS AND CONSUMER COMPLAINTS AT EASTERN AIR LINES AND CONTINENTAL AIRLINES UNDER MR LORENZO'S CONTROL MR BARTON ALSO CITED MR LORENZO'S MANAGEMENT PRACTICES SUCH AS PUTTING PRESSURE ON MAINTENANCE CREWS TO GET PLANES OUT OF THE HANGAR QUICKLY THE FAILURE PARTICULARLY AT EASTERN TO OPERATE A CARRIER WITHOUT REPEATEDLY COMPROMISING STANDARDS DESIGNED TO ASSURE THE SAFETY OF THE CARRIER AND THE TRAVELING PUBLIC MUST BE LAID SQUARELY AT THE DOOR OF MR LORENZO MR BARTON WROTE HE ALSO MENTIONED MR LORENZO'S HISTORY OF RANCOR WITH LABOR GROUPS AND HIS REMOVAL FROM THE HELM OF EASTERN BY A BANKRUPTCY COURT IN 1990 ATX SOUGHT PERMISSION LAST SPRING TO SET UP A LOWCOST SERVICE BETWEEN BALTIMORE AND OTHER LOCATIONS STOPPING THE AIRLINE BECAME A TOP PRIORITY FOR UNIONS THAT HAD INITIATED STRIKES AGAINST MR LORENZO'S AIRLINES IN THE 1980S AND BLAMED HIM FOR THE DEMISE OF EASTERN TRANSPORTATION SECRETARY FEDERICO PENA WHO HAD SENT THE CASE BACK TO MR BARTON IN OCTOBER NOW HAS THREE MONTHS TO MAKE A FINAL DECISION IT'S UNLIKELY MR PENA WILL BUCK THE RECOMMENDATION ALTHOUGH HE MIGHT SEEK A COMPROMISE THAT WOULD LET ATX FLY IF MR LORENZO HAD A MORE LIMITED ROLE A SPOKESMAN FOR MR PENA DECLINED TO COMMENT YESTERDAY ATX SAID THE LAW JUDGE'S RECOMMENDATION IS WRONG BUT WAS EXPECTED STEPHEN KOLSKI THE AIRLINE'S PRESIDENT SAID IN A STATEMENT THE PUBLIC PERSON OF LORENZOTHEVILLAIN HAS BEEN CAREFULLY CRAFTED BY TWO BOISTEROUS AND BELLIGERENT AIRLINE UNIONS TO MANIPULATE THE MEDIA FOSTER PUBLIC MISTRUST ALIENATE LORENZO'S CONSTITUENCIES AND PRESSURE WASHINGTON DECISIONMAKERS INTO STOPPING THE MAN MOST RESPONSIBLE FOR BRINGING THE BENEFITS OF DEREGULATION TO THE AMERICAN PEOPLE ATX ALSO SAID IT WILL INFORM MR PENA OF A CLEAR CONFLICT OF INTEREST BY A MEMBER OF THE PUBLIC COUNSEL'S OFFICE A GROUP OF TRANSPORTATION DEPARTMENT LAWYERS THAT RECOMMENDED AGAINST ATX EARLIER THIS MONTH ATX SAID THE LAWYER IN QUESTION WILLIAM WAGNER HAS A BROTHER WHO IS A MEMBER OF THE AIR LINE PILOTS ASSOCIATION AND WAS AN EASTERN PILOT UNTIL SHORTLY AFTER TEXAS AIR ACQUIRED THE AIRLINE IN 1986 MR WAGNER COULDN'T BE REACHED FOR COMMENT SAMUEL PODBERESKY OF THE PUBLIC COUNSEL'S OFFICE SAID HE KNEW MR WAGNER'S BROTHER WORKED AT EASTERN BUT SAW NO CONFLICT THE CHARGES ARE RIDICULOUS AND OUTLANDISH MR PODBERESKY SAID AN ALPA SPOKESMAN ECHOED THAT SAYING MR BARTON'S 89PAGE DECISION SPEAKS FOR ITSELF IN THE DECISION MR BARTON ACKNOWLEDGED THAT NONE OF MR LORENZO'S AIRLINES HAD BEEN FOUND UNSAFE BUT HE SAID THEIR MARGIN OF SAFETY WAS COMPROMISED AND THAT THE FEDERAL AVIATION ADMINISTRATION HAD TO DEVOTE EXTRAORDINARY RESOURCES TO MAKING SURE EASTERN WAS FIT TO FLY AND THAT IT IS SUFFICIENTLY LIKELY THAT THIS SITUATION OR ONE LIKE IT COULD SURFACE AGAIN HE SAID 9312230065 931223 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN MEXICO'S RULING INSTITUTIONAL REVOLUTIONARY PARTY KNOWN AS THE PRI HANDED THE MAYORALTY OF MERIDA TO THE CANDIDATE OF THE NATIONAL ACTION PARTY OR PAN FOLLOWING A DISPUTE ABOUT THE VOTE COUNT THE CONTROVERSY IN THE CAPITAL OF YUCATAN HAS CREATED A RIFT IN THE PRI AND CAST DOUBT ON ITS PROMISES OF A CLEAN PRESIDENTIAL ELECTION IN AUGUST 1994 THE FIRST AFTER MEXICO JOINS THE US AND CANADA IN A FREETRADE AREA THE PRI STILL INSISTS IT WON THE ELECTION BUT GAVE CITY HALL TO THE PAN TO END THE DISPUTE THE PAN HAD RELEASED A LIST OF POLLING STATIONS WHERE IT SAID VOTES OUTNUMBERED AND IN SOME PLACES DOUBLED THE NUMBER OF REGISTERED VOTERS THE PRI APPARENTLY REACHED ITS DECISION TO YIELD ONLY AFTER LOCAL PARTY OFFICIALS CONFERRED WITH NATIONAL GOVERNMENT LEADERS CLOSE TO PRESIDENT CARLOS SALINAS DE GORTARI THE ENTIRE PROCESS IN YUCATAN DOES NOTHING BUT UNDERLINE THE DOUBTS OF THE MEXICAN POPULATION ABOUT THE WHOLE MEXICAN ELECTORAL SYSTEM ANALYST SERGIO SARMIENTO WROTE IN THE BUSINESS DAILY EL FINANCIERO JAPAN'S NATIONAL FOOD AGENCY DOUBLED TO 22 MILLION TONS ITS MARCH RICEIMPORT TARGET TO MAKE UP FOR THIS YEAR'S POOR HARVEST AND SATISFY NEEDS UNTIL AUTUMN THE AGENCY ESTIMATED JAPAN WILL HARVEST 79 MILLION TONS OF RICE OR 75 OF THE AVERAGE ANNUAL CROP THE FOREIGN GRAIN WOULD AMOUNT TO 80 OF THE RICE SOLD THROUGH GOVERNMENT CHANNELS AT LOWER PRICES FARMERS INCREASINGLY PREFER TO GROW GOURMET RICE FOR PRIVATE SALE JAPAN INSISTS THE IMPORTS ARE A ONETIME EMERGENCY MEASURE UNRELATED TO ITS RECENT DECISION TO LIFT ITS RICEIMPORT BAN IN 1995 THE NORWEGIAN GOVERNMENT UNVEILED LEGISLATION TO TIGHTEN REGULATION OF COMPANY ACQUISITIONS BY DOMESTIC AND FOREIGN BUYERS THE PROPOSAL EXPECTED TO WIN PARLIAMENTARY PASSAGE IN THE FIRST HALF WOULD REQUIRE ALL PURCHASERS TO GET GOVERNMENT APPROVAL WHEN STAKES REACHED 33 45 AND 66 NOW A FOREIGN COMPANY THAT WANTS TO TAKE OVER A NORWEGIAN FIRM MUST GET APPROVAL WHEN A HOLDING REACHES 20 WHILE ACQUISITIONS BY DOMESTIC COMPANIES DON'T REQUIRE STATE ASSENT THE BILL WOULD AFFECT COMPANIES WITH MORE THAN 50 EMPLOYEES OR 68 MILLION IN ANNUAL SALES PATENT APPLICATIONS IN CHINA COULD EXCEED 75000 THIS YEAR UP 16 FROM 1992 WHEN THE PATENT AGENCY TIGHTENED PROTECTIVE MEASURES APPLICATIONS FROM ABROAD ARE EXPECTED TO TOTAL 10500 OR 14 OF THE TOTAL THE CHINA PATENT OFFICE SAID CITING IMPROVEMENTS IN PROTECTING INTELLECTUAL PROPERTY IT ALSO NOTED INCREASES IN LEGAL DISPUTES ABOUT COPYRIGHTS INTELLECTUAL PROPERTY RIGHTS AND PATENT VIOLATIONS HANDLED THROUGH AGENCY MEDIATION AND COURT RULINGS CHINA'S FIRST COPYRIGHT LAW TOOK EFFECT IN 1991 AND THE GOVERNMENT JOINED GLOBAL COPYRIGHT CONVENTIONS IN 1992 AUSTRALIA WILL REDUCE SHIPMENTS OF MEAT TO THE US NEXT YEAR IN ANTICIPATION OF IMPORT RESTRICTIONS IMPOSED BY WASHINGTON AUSTRALIA'S MEAT EXPORTING CONTRACTOR EXTENDED AN EXPORTCONTROL SYSTEM THAT LIMITS SHIPMENTS OF MEAT MAINLY BEEF TO THE US THIS YEAR THE US IMPORTED 315000 METRIC TONS OF AUSTRALIAN MEAT A METRIC TON EQUALS 220462 POUNDS THE 1995 TOTAL WOULD INCREASE TO 380000 TONS UNDER THE NEW GLOBAL TRADELIBERALIZATION PACT A EUROPEAN COMMUNITY STEEL INDUSTRY RESTRUCTURING RECEIVED FINAL APPROVAL BY EC RESEARCH MINISTERS THE OFFICIALS ALSO CLEARED PROPOSALS TO PHASE OUT SUBSIDIES TO THE UNCOMPETITIVE EC COAL INDUSTRY AND SET COMMON RULES ON OIL AND NATURAL GAS EXPLORATION THIS HAD BEEN LINKED TO THE STEEL OVERHAUL WHICH AIMS TO CLOSE PLANTS AND SLASH SURPLUS PRODUCTION CAPACITY THE EC ALSO GRANTED 68 MILLION TO 24000 STEELWORKERS WHO LOST THEIR JOBS THIS YEAR THE OUTLAY IS PART OF A 272 MILLION PROGRAM TO CUSHION EFFECTS OF REVAMPING THE SECTOR DIFFERENCES OVER SOVEREIGNTY BLOCKED AGREEMENT BETWEEN CHINA AND TAIWAN AFTER FIVE DAYS OF NEGOTIATIONS ON IMPROVING THEIR TRADE AND CULTURAL LINKS THE TALKS THE FIRST IN TAIWAN INVOLVING AN OFFICIAL BEIJING DELEGATION BROKE OFF AFTER CHINA REFUSED ANY ACCORD IMPLYING BEIJING'S RECOGNITION OF TAIWAN CHINA REGARDS TAIWAN AS A RENEGADE PROVINCE TAIWAN RULED BY THE NATIONALIST PARTY THAT FLED THE COMMUNIST TAKEOVER OF CHINA IN 1949 SEEKS TREATMENT AS AN EQUAL BOTH FAVOR REUNIFICATION BUT DIFFER ON TERMS TAIWAN SAID THE TALKS HADN'T COLLAPSED BUT ARE PART OF THE LONG ROAD TOWARDS A FINAL END ISSUES SOME OF WHICH CHINA REFUSED TO DISCUSS INCLUDED AIRPLANE HIJACKINGS FISHING AND IMMIGRATION BOTH SIDES AGREED HIJACKERS SHOULD BE REPATRIATED BUT TAIWAN WANTS COURT PROCEEDINGS JURISDICTION BEIJING SNUBS AND WILL OFFER POLITICAL OR RELIGIOUS ASYLUM CHINA WHICH HAD SOUGHT IMMEDIATE REPATRIATIONS OFFERED A 15DAY WINDOW KUWAIT ESTIMATED ITS LOSSES FROM THE SEVENMONTH IRAQI OCCUPATION AT MORE THAN 170 BILLION AND WILL MAKE ITS FIRST FINANCIAL CLAIM AGAINST BAGHDAD THROUGH THE UNITED NATIONS THIS MONTH GOVERNMENT SERVICES AND THE OIL SECTOR SUSTAINED MOST OF THE LOSSES THE UN HAS ORDERED IRAQ TO PAY WAR REPARATIONS TOURISTS VISITING INDONESIA THIS YEAR TOTALED AN ESTIMATED 33 MILLION UP 78 FROM LAST YEAR BUT SHORT OF THE GOVERNMENT'S TARGET OF 35 MILLION 9312230064 931223 TECHNOLOGY & MEDICINE BAXTER PRESIDENT TO QUIT US LIFTS SUSPENSION BY THOMAS M BURTON AND ROBIN GOLDWYN BLUMENTHAL STAFF REPORTERS OF THE WALL STREET JOURNAL HOSPITALSUPPLY CONCERN BAXTER INTERNATIONAL INC REGAINED ITS ELIGIBILITY FOR FEDERAL CONTRACTS BUT ITS NO 2 EXECUTIVE HAS SEPARATELY TOLD COLLEAGUES HE WILL RESIGN IN A DISAGREEMENT WITH THE CHAIRMAN OVER THE COMPANY'S DIRECTION ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION JAMES R TOBIN PRESIDENT AND CHIEF OPERATING OFFICER HAS NOTIFIED CHAIRMAN AND CEO VERNON R LOUCKS JR THAT HE PLANS TO LEAVE IN THE NEXT FEW DAYS PEOPLE FAMILIAR WITH THE DISCUSSIONS SAID A CENTRAL ISSUE IN THE DISAGREEMENT HAS BEEN WHETHER BAXTER'S RECENTLY ANNOUNCED 925 MILLION RESTRUCTURING GOES FAR ENOUGH IN DEALING WITH THE COMPANY'S FUNDAMENTAL BUSINESS PROBLEMS THE PEOPLE SAID MR TOBIN IS SAID TO HAVE ARGUED FOR ESSENTIALLY SPLITTING BAXTER INTO TWO COMPANIES ONE EMPHASIZING THE MANUFACTURE OF HOSPITAL SUPPLIES THE OTHER EMPHASIZING THE LOWERMARGIN BUSINESS OF DISTRIBUTING OTHER MANUFACTURERS' SUPPLIES PEOPLE WHO HAVE BEEN INFORMED ABOUT RECENT EXECUTIVE DISCUSSIONS SAY MR LOUCKS INITIALLY AGREED WITH THIS VIEW THEN CHANGED HIS MIND AND SUPPORTED THE MORE MODERATE RESTRUCTURING MR TOBIN IS ALSO SAID TO HAVE CONCLUDED THAT HE WON'T GET THE TOP JOB EVEN IF MR LOUCKS LEAVES MR TOBIN COULDN'T BE REACHED TO COMMENT MR LOUCKS IN AN INTERVIEW LAST NIGHT SAID JIM HAS SOME VIEWS ON THINGS THAT ARE NOT THE SAME AS MINE BUT THERE'S NOTHING DEFINITE ON ANYTHING THE EXECUTIVE TURMOIL COMES AT A TIME WHEN BAXTER FOR THE FIRST TIME IN A YEAR IS BEGINNING TO EXPERIENCE SOME GOOD NEWS THE COMPANY'S ELIGIBILITY FOR FEDERAL CONTRACTS WAS RESTORED YESTERDAY WHEN THE DEPARTMENT OF VETERANS AFFAIRS LIFTED A FOURMONTH SUSPENSION BUT BAXTER IMMEDIATELY FACED A NEW CHALLENGE COMPETITOR OWENS & MINOR INC YESTERDAY ACQUIRED STUART MEDICAL INC A MOVE THAT NEARLY DOUBLES THE SIZE OF OWENS & MINOR AND CREATES AN ENTITY WITH 22 BILLION IN ANNUAL SALES BAXTER'S US HOSPITAL BUSINESS IS ABOUT 42 BILLION OWENS & MINOR SAID IT PAID 402 MILLION IN CASH AND 115 MILLION IN CONVERTIBLE PREFERRED SHARES FOR STUART MEDICAL A CLOSELY HELD COMPANY BASED IN GREENSBURG PA OWENS & MINOR BASED IN RICHMOND VA ALSO SAID IT WOULD REFINANCE STUART MEDICAL'S 140 MILLION DEBT BAXTER ALREADY HAS SEEN ITS MARGINS SQUEEZED IN THE US THE ALIGNMENT OF STUART MEDICAL WITH OWENS & MINOR THE NATION'S NO 2 HOSPITAL SUPPLIER WILL COMPOUND BAXTER'S PROBLEMS INDUSTRY EXECUTIVES SAID THE VETERANS AGENCY DECISION WILL ENABLE BAXTER BASED IN DEERFIELD ILL TO AGAIN COMPETE FOR MORE THAN 130 MILLION IN ANNUAL HOSPITAL BUSINESS WITH US GOVERNMENT AGENCIES THE VETERANS AGENCY ALSO SAID IT WON'T BAR CERTAIN TOP BAXTER EXECUTIVES INCLUDING MR LOUCKS FROM DOING FURTHER BUSINESS WITH THE FEDERAL GOVERNMENT BAXTER WAS SUSPENDED LAST AUG 12 AFTER PLEADING GUILTY IN AN ARABBOYCOTTRELATED CRIMINAL CASE AND AFTER THE VETERANS AGENCY CONCLUDED THAT BAXTER SALES EXECUTIVES HAD IMPROPERLY SOLD PRODUCTS TO THE AGENCY THAT WERE NOT ON THE LIST OF ITEMS THE AGENCY HAD AGREED TO PURCHASE THE COMPANY AGREED TO PAY 285 MILLION IN CASH AND PRODUCT CREDITS OVER THREE YEARS TO SETTLE THE CHARGES THE ANNOUNCEMENT SENT OWENS & MINOR'S SHARES UP 1375 OR 72 TO 2050 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BAXTER CLOSED AT 2350 UP 25 CENTS ON THE BIG BOARD OWENS & MINOR INC AGREED TO ACQUIRE STUART MEDICAL INC FOR 1552 MILLION OF CASH AND STOCK THE TRANSACTION WHICH IS SUBJECT TO SHAREHOLDER AND REGULATORY APPROVAL IS EXPECTED TO CLOSE IN APRIL AN ARTICLE THURSDAY INCORRECTLY SAID THE TRANSACTION HAD BEEN COMPLETED 9312230063 931223 UAL BOARD ACCEPTS PLAN FOR BUYOUT BY EMPLOYEES UNIONS TO GIVE CONCESSIONS ON LABOR IN EXCHANGE FOR A MAJORITY STAKE BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UAL CORP DIRECTORS AGREED TO SELL A MAJORITY STAKE IN THE AIRLINE TO ITS TWO MAIN UNIONS IN EXCHANGE FOR HUGE LABOR CONCESSIONS IN WHAT WOULD BECOME THE NATION'S LARGEST COMPANY MAJORITYOWNED BY EMPLOYEES THE 5 BILLION TRANSACTION PUTS PRESSURE ON MAJOR RIVALS OF UAL'S UNITED AIRLINES TO REDUCE THEIR COSTS IN SIMILAR EQUITYFORCONCESSION TRANSACTIONS AND IT PORTENDS LOWER FARES FOR MANY CONSUMERS FULFILLING ONE OF THE MAIN GOALS OF DEREGULATION BEGUN 15 YEARS AGO UNDER THE INNOVATIVE PLAN WHICH STILL REQUIRES APPROVAL BY UAL SHAREHOLDERS AND MEMBERS OF THE MACHINISTS AND PILOTS UNIONS THE NATION'S LARGEST AIRLINE WOULD CREATE A SEPARATE LOWFARE CARRIER AND UNITED EMPLOYEES WOULD MAKE SUBSTANTIAL WAGE AND WORKRULE CONCESSIONS BOTH OF THOSE ACTIONS WOULD AMOUNT TO LABOR SAVINGS FOR UNITED OF MORE THAN 5 BILLION OVER SIX YEARS THE UNIONS SAID THE COMPANY HOWEVER ESTIMATED THE SAVINGS AT 45 BILLION IN EXCHANGE THE EMPLOYEES WOULD RECEIVE 53 OF UAL'S SHARES IF THE COMPANY'S STOCK RISES AT LEAST 333 IN THE YEAR AFTER THE TRANSACTION CLOSES THE EMPLOYEES' STAKE MAY INCREASE TO AS MUCH AS 63 UAL SAID THE COMPANY NOW FACES THE TASK OF SELLING THE PLAN TO CURRENT SHAREHOLDERS WHO WOULD RECEIVE A PACKAGE OF CASH AND SECURITIES VALUED BY THE UNIONS AT 173 A SHARE UAL SAID THAT ITS FINANCIAL ADVISERS FOUND THE PROPOSAL FAIR AND IN A SIGN THAT SHAREHOLDERS ARE BEGINNING TO LOOK MORE FAVORABLY ON THE PROPOSAL WHICH WAS FIRST ANNOUNCED LAST WEEK UAL SHARES ROSE 425 TO CLOSE AT 14850 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY BEFORE ANNOUNCING THAT THEY HAD APPROVED THE TRANSACTION LAST NIGHT UAL DIRECTORS DELIBERATED AT A DAYLONG MEETING IN NEW YORK THE DIRECTORS WERE UNDERSTOOD TO HAVE INTERVIEWED GERALD GREENWALD THE FORMER CHRYSLER CORP VICE CHAIRMAN WHOM THE UNIONS HAVE SELECTED TO RUN THE COMPANY AFTER THE TRANSACTION ASKING HIM HOW HE WOULD MANAGE UNITED THE INTERVIEW WAS INTENDED TO DETERMINE HOW MR GREENWALD WOULD PROTECT THE INTERESTS OF ALL SHAREHOLDERS NOT JUST EMPLOYEES ACCORDING TO ONE INDIVIDUAL FAMILIAR WITH THE DELIBERATIONS SOME INVESTORS HAVE VOICED SUCH CONCERNS IN ADDITION INSTITUTIONAL INVESTORS HAVE BEEN WARY OF THE TRANSACTION HAVING SEEN PREVIOUS EMPLOYEE BUYOUT ATTEMPTS AT UAL COLLAPSE IF THE TRANSACTION OCCURS UNITED CAN SUBSTANTIALLY INCREASE ITS WORKER PRODUCTIVITY STRIPPING AWAY SOME OF THE COSTLY LEGACY OF HIGH EMPLOYEE WAGES AND RESTRICTIVE WORK RULES THAT STEM FROM A MORE BUREAUCRATIC REGULATED PAST UPSTART CARRIERS WITH LOWER COST STRUCTURES HAVE BEEN STEALING AWAY MARKET SHARE BY SUBSTANTIALLY UNDERCUTTING THE MAJOR AIRLINES' TICKET PRICES UNITED FOR EXAMPLE WAS FLOORED THIS YEAR WHEN NEWCOMER MARKAIR OFFERED DALLASTODENVER SERVICE AT A FARE OF 85 BEFORE MARKAIR'S ENTRY UNITED CHARGED 357 FOR THE SAME FLIGHT UNITED WAS FORCED TO MATCH THE LOWER FARE THE FACT THAT WE ARE STILL DEALING WITH LABOR COST DIFFERENTIALS BETWEEN OLDER CARRIERS AND UPSTARTS MEANS WE HAVE SOME UNFINISHED BUSINESS FROM DEREGULATION SAID DAVID A SWIERENGA CHIEF ECONOMIST OF THE AIR TRANSPORT ASSOCIATION OF AMERICA AN AIRLINE TRADE ASSOCIATION UNITED IS EXPECTED TO REPORT ITS FOURTH CONSECUTIVE ANNUAL LOSS THIS YEAR TOGETHER THE MAJOR AIRLINES HAVE HAD LOSSES OF MORE THAN 10 BILLION IN RECENT YEARS PARTLY BECAUSE OF COMPETITION FROM NEWER AND LOWERCOST CARRIERS BUT WITH LOWER COSTS AND MOREFLEXIBLE WORK RULES UNITED CAN NOW LEAPFROG ITS OTHER MAJOR RIVALS NOTABLY AMR CORP'S AMERICAN AIRLINES AND DELTA AIR LINES WITH ITS LOWFARE CARRIER CODENAMED U2 UNITED WILL BE ABLE TO START SLASHING FARES TO DEFEND ITS SHORTHAUL ROUTES WHILE STILL MAINTAINING PROFIT MARGINS BY OFFERING SHORT FLIGHTS FROM ITS MAIN HUBS UNITED ALSO HOPES TO STIMULATE TRAFFIC ON ROUTES THE UPSTARTS HAVE NEGLECTED UNDER THE COMPLEX TRANSACTION THE PILOTS AGREED TO WAGE CUTS OF ABOUT 157 AND THE MACHINISTS AND NONCONTRACT EMPLOYEES AGREED TO WAGE CONCESSIONS OF ABOUT 10 ALL OVER ROUGHLY SIX YEARS THE PILOTS ALSO CONSENTED TO REDUCED PENSION CONTRIBUTIONS THE TERM OF THE CONCESSIONS WOULD BE SHORTENED IF THE UNION REPRESENTING UNITED'S FLIGHT ATTENDANTS REJOINS THE DEAL THE FLIGHT ATTENDANTS BOWED OUT OF THE BUYOUT NEGOTIATIONS LAST SUMMER IN A DISPUTE WITH THE COMPANY OVER ITS PLANS TO OPEN A FLIGHT ATTENDANT BASE IN TAIWAN THE FLIGHT ATTENDANTS UNION HAS SAID IT WILL DECIDE ITS COURSE OF ACTION NEXT MONTH ONE WORKRULE CHANGE WILL AFFECT THE FREE LUNCH UNITED'S MECHANICS HAVE GOTTEN FOR MORE THAN TWO DECADES THEY HAVE BEEN PAID FOR EIGHT HOURS OF WORK A DAY ALTHOUGH THEY REALLY WORKED 75 HOURS AND TOOK A 30MINUTE LUNCH BREAK THE UNION IN THE PAST HAS BITTERLY OPPOSED MANAGEMENT'S REPEATED ATTEMPTS TO ELIMINATE THE PAID LUNCH BUT UNDER THE BUYOUT PROPOSAL THE MACHINISTS UNION FINALLY RELENTED A CONCESSION THAT WILL MAKE UNITED MORE EFFICIENT THE PACKAGE SHAREHOLDERS WOULD RECEIVE UNDER THE PLAN WOULD CONSIST OF 26 IN CASH AND ABOUT 31 IN PREFERRED STOCK AND 31 IN NOTES THEIR COMMON STOCK WHICH THEY WOULD RETAIN WOULD BE VALUED AT ABOUT 85 APIECE FOLLOWING A DISTRIBUTION OF NEW SHARES TO AN EMPLOYEE STOCK OWNERSHIP PLAN THE PARTICIPANTS IN THE EMPLOYEE STOCK PLAN ARE UNITED'S NONCONTRACT WORKERS THE PILOTS AND THE MACHINISTS WITH ABOUT 29 MILLION SHARES CURRENTLY OUTSTANDING ON A FULLY DILUTED BASIS THE TRANSACTION HAS AN INDICATED VALUE OF 502 BILLION AS A COMPANY MAJORITYOWNED BY ITS EMPLOYEES UNITED COULD OFFER A HIGHPROFILE MODEL OF EMPLOYEE OWNERSHIP THAT THE CLINTON ADMINISTRATION HAS BEEN SEEKING LABOR DEPARTMENT OFFICIALS WERE ELATED THAT THE BIG COMPANY WORKED OUT A WAY TO RESTRUCTURE ITSELF TO REDUCE COSTS WITHOUT RESORTING AS MUCH OF US INDUSTRY HAS TO LARGESCALE LAYOFFS 9312230062 931223 A FATHER'S LETTER TO SANTA BY DAVID CHARTRAND MY FIVEYEAROLD BOY SCRIBBLED OUT HIS CHRISTMAS LIST IT'S THERE BY THE FIREPLACE THE COKE AND M&MS ARE FROM HIM IN CASE YOU'RE HUNGRY YOU KNOW FIVEYEAROLDS THESE DAYS THE CHEEZITS ARE FROM ME SANTA IF YOU DON'T MIND I THOUGHT I'D GO AHEAD AND LEAVE MY LIST TOO IT'S LONG BUT DO WHAT YOU CAN IT'S ALL I WANT FOR CHRISTMAS SANTA LET MY LITTLE BOY GROW UP STILL BELIEVING THAT HE HAS THE FUNNIEST DAD IN THE NEIGHBORHOOD GIVE HIM MANY CLOSE FRIENDS BOTH BOYS AND GIRLS MAY THEY FILL HIS DAYS WITH ADVENTURE SECURITY AND DIRTY FINGERNAILS LEAVE HIS MOM AND ME SOME MAGIC DUST THAT WILL KEEP HIM JUST THE SIZE HE IS NOW WE'D JUST AS SOON HE STAYED FIVE YEARS OLD AND THREE FEET FOUR INCHES IF HE MUST GROW UP MAKE SURE HE STILL WANTS TO SIT ON MY LAP AT BEDTIME AND READ THE FROG AND THE TOAD IF YOU CAN HELP IT SANTA NEVER LET HIM BE SENT INTO WAR HIS MOTHER AND I LOVE OUR COUNTRY BUT WE LOVE OUR FIVEYEAROLD BOY MORE WHILE YOU'RE AT IT GIVE OUR WORLD LEADERS A COPY OF THE KILLER ANGELS MICHAEL SHAARA'S RETELLING OF THE BATTLE OF GETTYSBURG MAY IT REMIND THEM THAT TOO MANY MOMS AND DADS HAVE WEPT AT CHRISTMAS FOR SOLDIERS WHO DIED IN BATTLES THAT NEEDN'T HAVE BEEN FOUGHT LET OUR HOUSE ALWAYS BE FILLED WITH SLAMMING DOORS AND TOILET SEATS WHICH ARE THE OFFICIAL SOUNDS OF LITTLE BOYS BREAK IT TO HIM GENTLY SANTA THAT HIS DAD WON'T ALWAYS BE ABLE TO CARRY HIM TO BED AT NIGHT OR BRUSH HIS TEETH FOR HIM TEACH HIM COURAGE IN THE FACE OF SUCH CHANGE LET HIM UNDERSTAND THAT NO MATTER HOW NICE YOU ARE TO EVERYONE THE WORLD WILL SOMETIMES BREAK YOUR HEART AS YOU KNOW SANTA A CHILD'S FEELINGS ARE FRAGILE AS MOTH WINGS LET HIM BECOME A PIANO PLAYER A SOCCER STAR OR A PRIEST OR ALL THREE ANYTHING BUT A TAXANDSPEND DEMOCRAT GIVE HIM A HUNGER FOR BOOKS MUSIC AND GEOGRAPHY MAY HE BE THE FIRST KID IN KINDERGARTEN TO BE ABLE TO FIND MADAGASCAR ON A MAP THE KID'S A BORN ARTIST SANTA SO SEND MORE CRAYONS MAY OUR KITCHEN WINDOW AND REFRIGERATOR DOORS BE EVER PLASTERED WITH HIS SKETCHES OF SURREAL RAINBOWS AND HORSES WITH BIG EARS THROUGH THE YEARS STEER HIM OH SO CAREFULLY TO THAT LITTLE GIRL DESTINED TO BE HIS BRIDE LET HIS MOTHER AND ME STILL BE AROUND WHEN HE WALKS HER DOWN THE AISLE IF THERE'S A JUST GOD LET HER DADDY BE OBSCENELY RICH GRANT HIM A HEART THAT WILL CHERISH WHAT HIS PARENTS DID RIGHT AND FORGIVE US FOR THE MISTAKES WE SURELY WILL HAVE MADE OVER A LIFETIME OF RAISING HIM LET HIM NOT HOLD IT AGAINST US THAT HE WAS BORN WITH MY CHIN AND HIS MOTHER'S EARS TIME WILL TEACH HIM THAT THESE ARE GOD'S WAYS OF GIRDING HIM FOR LIFE'S ADVERSITIES HOLD HIM STEADY ON THE DAY THAT HE LEARNS THE TRUTH ABOUT YOU AND THE EASTER BUNNY MAY HE TAKE THE NEWS BETTER THAN I DID WHILE YOU'RE FLYING AROUND THE HEAVENS SANTA MAKE SURE GOD HAS HEARD OUR PRAYER FOR THIS CHILD LEAD MY LITTLE BOY NOT INTO TEMPTATION DELIVER HIM FROM EVIL BE CAREFUL OUT THERE SANTA AND CLOSE THE FLUE ON YOUR WAY UP MR CHARTRAND IS A COLUMNIST FOR THE OLATHE KAN DAILY NEWS WHERE THIS COLUMN FIRST APPEARED 9312230061 931223 GIVING A SPECIAL REPORT BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN MATCH ME SAY WORKERS WHO WANT MORE SWAY IN DIRECTING CORPORATE LARGESS ONCE LIMITED TO COLLEGE DONATIONS AND UNITED WAY DRIVES MANY FIRMS NOW MATCH WORKERS' GIFTS TO CULTURAL GROUPS HOSPITALS AND HUMANSERVICES AGENCIES DISASTERS SUCH AS THE MIDWEST FLOOD HURRY THE TREND WHERE TO GIVE CAN BE TRICKY IT'S VERY HARD TO SIT AT CORPORATE HEADQUARTERS AND DECIDE WHERE YOUR MONEY WILL BE GIVEN IN A SMALL TOWN IN OHIO SAYS TOM CAMPBELL OF COOPER INDUSTRIES FOUNDATION IN HOUSTON IT MATCHES VIRTUALLY ANY CHARITABLE GIFT IN 1994 AMOCO FOUNDATION WILL MATCH GIFTS TO PRIMARY AND SECONDARY SCHOOLS TOO LAST YEAR GENERAL MILLS' FOUNDATION ADDED ARTS AND CULTURAL GROUPS IN ITS EFFORT TO EXPAND GEOGRAPHICALLY EMPLOYEES AT LOTUS DEVELOPMENT CAMBRIDGE MASS GAVE 33 MORE THIS YEAR DUE TO THE FLOOD AND A QUAKE IN INDIA IN TOUGH TIMES FIRMS LIKE DIGITAL EQUIPMENT IBM AND HONEYWELL KEEP THE PROGRAM BUT TRIM THE AMOUNT OF THE MATCH MERCK EMPLOYEEMATCHING GIFTS ROSE 18 TO 26 MILLION THIS YEAR WHILE ITS TOTAL CASH GIVING SLID 8 TO 12 MILLION GIFTS TO MEXICO BECOME MUCH EASIER TO BESTOW UNDER TERMS OF A NEW TAX TREATY ON THE HEELS OF NAFTA A LITTLEKNOWN ARTICLE IN THE NEW TAX TREATY WITH MEXICO LETS US FIRMS DEDUCT GIFTS TO MEXICAN CHARITIES AS EASILY AS GIFTS MADE AT HOME A KEY CHANGE MEXICAN LAW NOW MIRRORS US LAW IN DEFINING WHAT CONSTITUTES A CHARITY EASING THE PROCESS FOR BOTH DONOR AND IRS AS NAFTA CRANKS UP US FIRMS ARE LIKELY TO WANT TO PUT THEIR PHILANTHROPY WHERE THEIR PLANTS ARE SAYS THOMAS TROYER A WASHINGTON LAWYER WITH CAPLIN & DRYSDALE FOUNDATIONS SAVE MONEY AND TIME TOO SAYS WILLIAM WHITE HEAD OF THE CHARLES STEWART MOTT FOUNDATION THE OLD LAW CALLED FOR SUCH COSTLY LEGAL WORK FROM APPLICANTS THAT MANY SMALL GRANTS COULD GET LOST IN THE SHUFFLE THE TAX TREATY WILL MAKE OUR LIFE A LOT EASIER SAYS MR WHITE ADDING MANY SOCIAL PROBLEMS ARE CROSSBORDER ILLS THIS YEAR THE MOTT FOUNDATION WILL AWARD SOME 375000 IN GRANTS TO MEXICAN GROUPS MORE THAN TRIPLE 1991'S TOTAL OMELET IN THE SKY FUNDRAISERS SEE AGING BOOMERS AS POSSIBLE GOLDEN GEESE SOME WEALTHWATCHERS ESTIMATE THAT AS MUCH AS 10 TRILLION WILL PASS FROM ONE GENERATION TO THE NEXT IN COMING DECADES BUT LESTER SALAMON DIRECTOR OF THE JOHNS HOPKINS INSTITUTE FOR POLICY STUDIES NOTES THAT JUST HOW MUCH OF THE FORTUNES GO TO CHARITIES IS DEBATABLE SOME BABY BOOMERS WILL GET RELIGION' AND GIVE TO CHARITY BUT IT WON'T BE UNIVERSAL HE SAYS STILL FUNDRAISERS AND ESTATE PLANNERS GET SET TO POUNCE WHILE GIVING GUIDEBOOKS BLOOM BUT BENEFACTORS IN THE EARLY 21ST CENTURY MAY DIFFER FROM FORDS AND CARNEGIES OF A CENTURY EARLIER THE LAST TIME A MASS OF FORTUNES CONVERGED THE OLD WEALTH WAS BASED ON PHYSICAL CAPITAL THAT DIDN'T FLUCTUATE AS MUCH AS TODAY'S PAPER WEALTH SAYS DR SALAMON SO NEW PHILANTHROPISTS MAY BE MORE CONCERNED WITH MAINTAINING FAMILY LEGACIES BEFORE THINKING OF CHARITY WHAT'S MORE ENDOWED ADVOCACY LIKE WALTER ANNENBERG'S HUGE GIFTS AIMED AT SCHOOLAGE YOUTHS MAY BE MORE IN VOGUE THAN GIFTS TO BIG GENERAL FOUNDATIONS SAYS DR SALAMON MAYBE THERE IS MORE MONEY OUT THERE BUT IT'S GOING TO BE HARDER TO GET SAYS MARTIN GRENZEBACH HEAD OF A FUNDRAISING CONSULTING FIRM IN CHICAGO THE KETTLES THIS SEASON ARE WATCHED BY ABOUT 60 VOLUNTEERS AND 40 PAID WORKERS A SOMEWHAT HIGHER RATIO OF VOLUNTEERS THAN IN THE '80S SAYS THE SALVATION ARMY GIFTS RUN SOME 4 BELOW '92 LEVELS PRIVATE MESSAGES FOR HOMELESS PEOPLE SEEKING JOBS AND SERVICES ARE ARRANGED BY BELL ATLANTIC MOBILE SO FAR IT PROVIDES ABOUT 100 PHONE NUMBERS IN A DOZEN PLACES NEW CHARITIES SPROUT NEARLY SIX OUT OF 10 NONRELIGIOUS CHARITIES THAT NOW EXIST WERE FOUNDED BETWEEN 1971 AND 1992 SAYS A REPORT FROM INDEPENDENT SECTOR A COALITION OF NONPROFITS IN WASHINGTON REFORM'S ON THE MINDS OF LAWMAKERS BUT ACTION IS SLOW RESOURCES FEW SOME 40 STATES NOW HAVE LAWS TO REGULATE CHARITIES AND FUNDRAISERS AND SEVERAL STATE ATTORNEYS GENERAL FILED SUITS AGAINST FRAUDULENT FUNDRAISING SCHEMES AS COMPLAINTS MOUNT THE BIGGEST GRIPE PAID PHONE SOLICITATIONS FOLLOWED BY SKETCHY REPORTING SAYS CHRISTINE MILLIKEN HEAD OF THE NATIONAL ASSOCIATION OF ATTORNEYS GENERAL THERE'S A WHOLE ISSUE HERE OF NEW TECHNOLOGIES AND MIDDLEMEN IN A TIME OF SHRINKING BUDGETS SHE SAYS MEANWHILE CONGRESS CONSIDERS ADDING WEAPONS TO USE ON CHARITIES THAT ABUSE THEIR TAXEXEMPT STATUS THESE ARE WARNING SHOTS ACROSS THE BOW OF THE GOOD SHIP CHARITY SAYS KENNETH ALBRECHT PRESIDENT OF THE NATIONAL CHARITIES INFORMATION BUREAU IN NEW YORK BUT HE ADDS THAT PAST CRACKDOWNS HAVE AT TIMES LED TO FRUSTRATION WHEN FUNDRAISERS MOVED ON TO DIFFERENT TERRITORIES THE NATIONAL ASSOCIATION OF STATE CHARITY OFFICIALS BACKS A UNIFORM CHARITYREGISTRATION FORM TO AID MONITORING BRIEFS WELCOME HOUSE A SUBSTANCEABUSE CENTER IN KANSAS CITY BENEFITS FROM A HOOKERS AND HELLRAISERS HALLOWEEN FUNDRAISER AT A LOCAL BAR ACKNOWLEDGING WE SEE THE IRONY CHURCHES SHOULD GO FORTH AND MULTIPLY BY ADVERTISING ON TV SAYS A SPEECHCOMMUNICATION INSTRUCTOR AT PENNSYLVANIA STATE UNIVERSITY AT ERIE 9312230058 931223 BUSINESS BRIEF ALLIED WASTE INDUSTRIES INC COMPANY LOWERS FORECAST FOR 4THQUARTER EARNINGS ALLIED WASTE INDUSTRIES INC SAID IT WILL REPORT EARNINGS OF ABOUT ONE CENT A SHARE FOR THE FOURTH QUARTER DOWN FROM ITS PROJECTION OF ABOUT FOUR CENTS A SHARE ALLIED WASTE EARNED 95 MILLION OR THREE CENTS A SHARE A YEAR EARLIER THOMAS H VAN WEELDEN PRESIDENT AND CHIEF OPERATING OFFICER OF THE SCOTTSDALE ARIZ COMPANY SAID THE REVISION WAS DUE TO THE HEAVY SUMMER RAINS IN THE MIDWEST WHICH DIVERTED LANDFILL BUSINESS AWAY FROM THE COMPANY PAYMENT OF A LARGE DIVIDEND ASSOCIATED WITH A SEPTEMBER PRIVATE PLACEMENT OF PREFERRED STOCK ALSO CONTRIBUTED TO THE LOWERED FORECAST HE SAID THE SOLIDWASTE MANAGEMENT COMPANY ALSO SAID IT FILED A REGISTRATION STATEMENT FOR THE SALE OF 75 MILLION IN SENIOR SUBORDINATED NOTES MATURING 2004 IT SAID PROCEEDS WOULD BE USED TO REFINANCE 344 MILLION OF EXISTING LONGTERM DEBT TO FINANCE PENDING ACQUISITIONS AND TO PROVIDE CAPITAL FOR CONTINUED EXPANSION AND GROWTH LEAD UNDERWRITER WILL BE JEFFERIES & CO 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 9312230057 931223 CORRECTIONS & AMPLIFICATIONS A HEADLINE AND ARTICLE OCT 5 1992 INCORRECTLY STATED THAT WILLIAM G PIETERSEN WHO WAS PRESIDENT OF SEAGRAM CO'S TROPICANA UNIT WAS OUSTED AS A RESULT OF THE POOR PERFORMANCE OF THE JUICE COMPANY THE STATEMENT WAS REPEATED IN ARTICLES ON SEAGRAM PUBLISHED MARCH 2 AND JUNE 4 1993 UNDER MR PIETERSEN'S LEADERSHIP TROPICANA'S US OPERATING INCOME GREW 14 IN 1992 MR PIETERSEN RESIGNED FROM TROPICANA WHICH IS BASED IN FLORIDA TO RETURN TO THE NORTHEAST FOR FAMILY REASONS SINCE JANUARY 1993 MR PIETERSEN HAS BEEN PRESIDENT OF THE WORLDWIDE CONSUMER HEALTH GROUP OF STERLING WINTHROP INC NEW YORK A UNIT OF EASTMAN KODAK CO JAPAN'S FINANCE MINISTRY PLANS TO LIFT A RULE THAT PREVENTS SECURITIES DEALERS FROM MARKETING SOME EUROYEN BONDS IN JAPAN FOR 90 DAYS AFTER ISSUANCE THE MINISTRY WILL LIFT THE RULE FOR BONDS SOLD BY SOVEREIGN ISSUERS SUCH AS GOVERNMENTS OR INTERNATIONAL AGENCIES AN ARTICLE YESTERDAY INCORRECTLY REPORTED THAT THE MINISTRY WOULD LIFT THE RULE FOR CORPORATIONS SELLING EUROYEN BONDS THAT CARRY STOCK OPTIONS CHINA'S MOTORCYCLE INDUSTRY COULD PRODUCE THREE MILLION VEHICLES THIS YEAR TRIPLE THAT OF A YEAR EARLIER AND NOT UP A THIRD AS REPORTED IN YESTERDAY'S WORLD WIRE COLUMN THE CALIFORNIA DEPARTMENT OF TRANSPORTATION INTENDS TO AWARD A TOLLCOLLECTION AND ACCOUNTING CONTRACT TO MFS NETWORK TECHNOLOGIES A UNIT OF MFS COMMUNICATIONS CO WHOSE MAJORITY STOCKHOLDER IS PETER KIEWIT SONS' INC IN AN ARTICLE TUESDAY MFS NETWORK TECHNOLOGIES WAS INCORRECTLY IDENTIFIED AS KIEWIT NETWORK TECHNOLOGIES ITS PREVIOUS NAME 9312230056 931223 BUSINESS BRIEF BETHLEHEM STEEL CORP REST OF UNIT'S OPERATIONS TO BE SOLD TO VERITAS CAPITAL BETHLEHEM STEEL CORP SAID IT AGREED TO SELL THE REMAINING STEELMAKING AND ROLLING MILL OPERATIONS OF ITS FORMER BAR ROD AND WIRE UNIT TO VERITAS CAPITAL INC THE PRICE OF THE TRANSACTION EXPECTED TO CLOSE EARLY NEXT YEAR WASN'T DISCLOSED BETHLEHEM HAS SOLD PIECES OF THE UNIT SINCE SHUTTING IT DOWN IN 1992 THIS IS THE BULK OF IT A BETHLEHEM SPOKESMAN SAID OF THE SALE TO VERITAS VERITAS A CLOSELY HELD MERCHANT BANKING CONCERN IN NEW YORK SAID IT WILL CONTROL THE NEW COMPANY TO BE NAMED BRW STEEL CORP WITH OWNERSHIP PARTICIPATION BY THE UNITED STEELWORKERS OF AMERICA THROUGH A NEW EMPLOYEE STOCK OWNERSHIP PLAN AND MEMBERS OF BRW STEEL MANAGEMENT BETHLEHEM SAID THE AGREEMENT COVERS ITS ELECTRIC FURNACE STEELMAKING SHOP THE PRIMARY ROLLING MILLS AND 11INCH BAR MILL IN JOHNSTOWN PA AND THE 13INCH BAR MILL IN LACKAWANNA NY THOMAS J CAMPBELL A VERITAS PARTNER SAID FINANCING IS BEING FINALIZED TO RESTART OPERATIONS BEFORE MID1994 AND LAUNCH A MODERNIZATION PROGRAM VERITAS AND THE UNITED STEELWORKERS UNION REACHED AN AGREEMENT ON A FIVEYEAR COLLECTIVE BARGAINING CONTRACT THE REOPENED PLANTS ARE EXPECTED TO EMPLOY AS MANY AS 1450 WORKERS IN PENNSYLVANIA AND NEW YORK 9312230054 931223 WHAT'S NEWS BUSINESS AND FINANCE UAL AGREED TO SELL A MAJORITY STAKE IN THE AIRLINE TO ITS TWO MAIN UNIONS IN EXCHANGE FOR HUGE LABOR CONCESSIONS IN WHAT WOULD BECOME THE NATION'S LARGEST COMPANY MAJORITYOWNED BY EMPLOYEES THE 5 BILLION TRANSACTION PUTS PRESSURE ON MAJOR RIVALS TO REDUCE COSTS IN SIMILAR EQUITYFORCONCESSION PLANS AND IT PORTENDS LOWER FARES FOR CONSUMERS FULFILLING ONE OF THE MAIN GOALS OF DEREGULATION BEGUN 15 YEARS AGO PARAMOUNT AGREED TO BE ACQUIRED BY QVC NETWORK UNTIL NOW A HOSTILE BIDDER AND TO ADVISE SHAREHOLDERS TO EMBRACE QVC'S 10 BILLION BID OVER VIACOM'S 95 BILLION OFFER BUT VIACOM COULD STILL SWEETEN ITS OFFER AND IS REPORTEDLY IN TENSE NEGOTIATIONS TO LINE UP A HEFTY CASH INFUSION TO DO SO BORDEN'S TALKS WITH HANSON OVER A POSSIBLE ACQUISITION OF THE FOOD AND CHEMICAL CONGLOMERATE BROKE DOWN BORDEN SAID IT IS CLOSE TO COMPLETING ITS LONGPROMISED RESTRUCTURING PLAN AND WILL ANNOUNCE IT BY EARLY JANUARY SURGING BOND PRICES DROVE STOCK PRICES HIGHER THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED NEARLY 1 1/4 POINTS ITS YIELD FELL TO 621 THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1704 POINTS TO CLOSE AT 376219 WALMART DECIDED TO STOP SELLING HANDGUNS IN STORES THOUGH IT WILL CONTINUE SELLING SHOTGUNS AND RIFLES IN STORES AND HANDGUNS BY CATALOG THE ECONOMY GREW AT AN INFLATIONADJUSTED 29 ANNUAL RATE IN THE THIRD QUARTER ACCORDING TO REVISED DATA HIGHER THAN THE ESTIMATE OF 27 THAT OFFICIALS ISSUED A MONTH AGO MARTIN MARIETTA AGREED TO BUY GENERAL DYNAMICS' SPACE SYSTEMS DIVISION FOR 2085 MILLION ANALYSTS SAID THE PRICE WAS AT THE LOWER END OF EXPECTATIONS BUT HAILED THE DEAL AS A POSITIVE STRATEGIC STEP FOR BOTH FIRMS GENERAL ELECTRIC IS CLOSE TO GETTING AN ORDER FROM CSX THE NATION'S MOST EXTENSIVE RAILROAD FOR NEARLY 300 LOCOMOTIVES USING ITS AC DIESEL ELECTRIC TECHNOLOGY INDUSTRY EXECUTIVES SAID A GELED GROUP AGREED TO ACQUIRE 69 OF ITALY'S STATEOWNED ELECTRICALEQUIPMENT COMPANY NUOVO PIGNONE IN A TRANSACTION VALUED AT 420 MILLION FRANK LORENZO'S ATX AIRLINE DOESN'T HAVE THE REQUIRED AMOUNT OF MANAGERIAL COMPETENCE TO OPERATE AN ADMINISTRATIVE LAW JUDGE SAID IN RECOMMENDING FOR A SECOND TIME THAT LORENZO BE DENIED A CERTIFICATE TO FLY MERRILL LYNCH SETTLED SEC CHARGES THAT IT VIOLATED RECORDKEEPING REQUIREMENTS IN ITS SECURITIES DEALINGS WITH TWO INSURERS DURING THE 1980S NORTHERN TELECOM CONSOLIDATED INTO TWO GROUPS AND ELEVATED ONE EXECUTIVE TO HEAD MOST OPERATIONS AND PRODUCT PLANNING AMID AN EFFORT TO REVERSE A SLIDE IN ITS US BUSINESS BUSINESSES HAVE BEEN HURT LESS THAN EXPECTED BY A NEW ACCOUNTING RULE ON RETIREES' MEDICAL BENEFITS BUT MOST STILL PLAN TO CUT THOSE BENEFITS FURTHER A SURVEY OF MAJOR FIRMS FOUND AT&T AGREED TO WORK WITH CONSUMER GROUPS IN CALIFORNIA TO ENSURE THAT ITS LARGE LOWINCOME POPULATION ISN'T LEFT BEHIND IN THE RUSH TOWARD NEW TELECOMMUNICATIONS SERVICES THE PLAN PUTS PRESSURE ON CALIFORNIA TO APPROVE AT&T'S PROPOSED 126 BILLION ACQUISITION OF MCCAW CELLULAR DELL COMPUTER PLANS TO ANNOUNCE EARLY NEXT YEAR THAT IT WILL RESELL NOTEBOOK COMPUTERS MADE BY RIVAL AST RESEARCH AS PART OF ITS STRATEGY TO REGAIN ITS FOOTING IN THE HOT SECTOR BAXTER INTERNATIONAL'S ELIGIBILITY FOR FEDERAL CONTRACTS WAS RESTORED AFTER THE DEPARTMENT OF VETERANS AFFAIRS LIFTED ITS FOURMONTH SUSPENSION OF THE HOSPITALSUPPLY COMPANY BUT BAXTER IMMEDIATELY FACED A NEW CHALLENGE WITH A PURCHASE BY A RIVAL THE SEC APPROVED LIMITS ON THE USE OF NASDAQ'S SMALL ORDER EXECUTION SYSTEM AND DREW A THREAT OF A CHALLENGE FROM A DEEPDISCOUNT BROKER PROVIDENCE HEALTH CARE SAID IT HAS AGREED TO PUT ITSELF UP FOR SALE AS PART OF AN AGREEMENT WITH AN INVESTOR GROUP THAT HAD SOLICITED PROXIES IN AN EFFORT TO REPLACE THE BOARD BONDS LEHMAN BROTHERS TREASURY INDEX 556439 UP 5837 COMMODITIES OIL 1477 A BARREL UP 41 CENTS DOW JONES FUTURES INDEX 14109 UP 050 SPOT INDEX 12648 UP 004 DOLLAR 11035 YEN OFF 083 17015 MARKS OFF 00088 9312230053 931223 LEISURE & ARTS BOOKSHELF ECON 101 WITH FUN AND WIT BY JOE QUEENAN WITTY ECONOMISTS ARE ABOUT AS EASY TO FIND AS ANOREXIC MEZZOSOPRANOS NATTY MUJAHEDEEN AND CHEERFUL PHILADELPHIANS BUT STEVEN E LANDSBURG THE AUTHOR OF THE ENGAGING IRREVERENT THE ARMCHAIR ECONOMIST ECONOMICS AND EVERYDAY LIFE FREE PRESS 241 PAGES 2295 IS ONE ECONOMIST WHO FITS THE BILL IN A WIDERANGING EASILY DIGESTED UNBELIEVABLY CONTRARIAN SURVEY OF EVERYTHING FROM WHY POPCORN AT MOVIE HOUSES COSTS SO MUCH TO WHY RECYCLING MAY ACTUALLY REDUCE THE NUMBER OF TREES ON THE PLANET THE UNIVERSITY OF ROCHESTER PROFESSOR VALIANTLY TURNS THE DISCUSSION OF VEXING ECONOMIC QUESTIONS INTO AN ACTIVITY THAT ORDINARY PEOPLE MIGHT ENJOY ORDINARY FOLKS ARE USUALLY TURNED OFF BY THE DISMAL SCIENCE BECAUSE ECONOMIC DEBATES ARE SO OFTEN FRAMED IN TERMS OF ABSTRACTIONS M1 LONGTERM RATES M2 SHORTTERM RATES CONVINCED THAT HIS CHOSEN FIELD OF STUDY NEEDN'T BE THIS DREARY MR LANDSBURG USES INGENIOUS IF OFTEN DEBATABLE ECONOMIC ARGUMENTS TO ANSWER PRACTICAL QUESTIONS FOR INSTANCE DO SEAT BELTS AFFECT DRIVER SAFETY YES HE CLAIMS THEY INCREASE FATALITIES BECAUSE WHEN DRIVERS FEEL SAFER THEY TAKE MORE RISKS OR WHY DO MANUFACTURERS DISTRIBUTE CENTSOFF COUPONS BECAUSE THEY EFFECTIVELY REACH SHOPPERS WITH NOT MUCH TO DO ALONG THE WAY MR LANDSBURG EXPLAINS HOW BURNING YOUR 1 BILLS COULD BE BENEFICIAL TO SOCIETY IT REDUCES THE MONEY SUPPLY THUS CAUSING PRICES TO FALL AND WHY CONCERT PROMOTERS ONLY CHARGE 35 FOR A ROLLING STONES TICKET WHEN THEY COULD EASILY GET 50 IF THEY CHARGE 35 THEY ATTRACT MORE TEENAGERS AND TEENAGERS BUY MORE OF SUCH HIGHLY PROFITABLE MERCHANDISE AS TSHIRTS SOMETIMES OF COURSE HIS REASONING WILL STRIKE THE READER AS FARFETCHED AND ABSURD FOR EXAMPLE HE TRIES TO EXPLAIN THE LOGIC BEHIND EXORBITANT NONRESULTSBASED EXECUTIVE COMPENSATION BY ARGUING THAT A SALARY STRUCTURE TIED TOO CLOSELY TO PERFORMANCE DISCOURAGES MANAGEMENT FROM TAKING TRULY DARING RISKS THAT WILL ONLY REAP REWARDS MANY YEARS DOWN THE ROAD MR LANDSBURG IS CONVINCED THAT ALL HUMAN ACTIVITY IS RATIONAL AND THAT EVEN THE MOST INEXPLICABLE ACTIONS HAVE A HIDDEN ECONOMIC LOGIC SO EVEN THOUGH THE EXPENDITURE OF A COMPANY'S CAPITAL ON POMPOUS CORPORATE ARCHITECTURE MIGHT SEEM LIKE A WASTE OF PRECIOUS RESOURCES HE ARGUES THAT THOSE ATRIUMS REASSURE INVESTORS THAT THE COMPANY IS SOLID AND CONFIDENT A FLYBYNIGHT OUTFIT WOULDN'T BOTHER WITH THE MARBLE WATER FOUNTAINS BECAUSE IT WOULDN'T EXPECT TO BE AROUND FOR VERY LONG MR LANDSBURG OBVIOUSLY WASN'T ON HAND FOR THE DEDICATION OF THE CHEVY CHASE THEATER IN HOLLYWOOD LAST SEPTEMBER IN WRITING THIS OFTEN WRY VOLUME MR LANDSBURG WEARS THREE HATS PROSELYTIZER FOR HIS MALIGNED PROFESSION CURMUDGEON AND WISEACRE TO ARGUE THAT IF PEOPLE BETTER UNDERSTOOD ECONOMICS THEY WOULD BETTER UNDERSTAND LIFE THEY WOULD ALSO STOP MAKING FOOLS OF THEMSELVES WHEN THEY APPEARED ON LARRY KING TO DISCUSS THE DRAWBACKS OF FREE TRADE MR PEROT SAYS THE AUTHOR HAS PUT THE CART BEFORE THE HORSE IN THIS DEBATE TRADE IS BENEFICIAL NOT BECAUSE OF EXPORTS BUT BECAUSE OF IMPORTS HE WRITES THE EXPORT BUSINESS IS THE DOWNSIDE OF INTERNATIONAL TRADE YOU DON'T ENJOY DOING THE OTHER CLASSES' LAUNDRY BUT YOU DO ENJOY EATING THEIR BROWNIES OVER THE YEARS MR LANDSBURG HAS WORKED UP A SIZABLE SHEAF OF MAGAZINE AND NEWSPAPER ARTICLES ABOUT ANNOYING PEOPLE AND IDEAS LIMO LIBERALS LIKE FELIX ROYATYN WHINING ABOUT THE FEDERAL DEFICIT ARE HIGH ON THE LIST ENVIRONMENTALISTSCOME NEXT WHY HE WONDERS DO PEOPLE WHO WANT TO PRESERVE THE WILDERNESS RATHER THAN BUILD PROFITABLE PARKING LOTS FOR THE SAKE OF OUR GRANDCHILDREN ALWAYS ASSUME THAT OUR GRANDCHILDREN WILL BE ENVIRONMENTALISTS WHO WOULD RATHER HAVE WILDERNESS THAN PROFITABLE PARKING LOTS SURELY MR LANDSBURG SEEMS TO ARGUE SOME OF OUR GRANDCHILDREN WILL BE REPUBLICANS IS IT POSSIBLE TO DISTINGUISH ECONOMISTS FROM LOWER FORMS OF LIFE MR LANDSBURG ATTEMPTS THIS IN A THOUGHTFUL CONSIDERATION OF WONKS WE LIVE IN AN AGE OF POLICY WONKS' WHO JUDGE PROGRAMS BY THEIR EFFECT ON PRODUCTIVITY OR OUTPUT OR WORK EFFORTS HE NOTES WONKIAN ANALYSIS USES THE JARGON OF ECONOMICS WHILE IGNORING ITS CONTENT ECONOMISTS VIEW THE WONKS' FIXATION ON OUTPUT AS A BIZARRE AND UNHEALTHY OBSESSION WONKS WANT AMERICANS TO DIE RICH ECONOMISTS WANT AMERICANS TO DIE HAPPY OFTEN MR LANDSBURG JUMPS THROUGH HOOPS TO PUT A HAPPY FACE ON EVERY ECONOMIC MISFORTUNE THAT HAS RECENTLY BEFALLEN THIS SOCIETY A CASE IN POINT IS THE FAILURE OF DETROIT'S BIG THREE TO KEEP PACE WITH THE JAPANESE CAR INDUSTRY AS HE PUT IT WHEN PUNDITS DECRY THE QUALITY OF AMERICANMADE AUTOMOBILES ECONOMISTS WONDER WHAT ALL THE FUSS IS ABOUT SOMEBODY HAS TO SPECIALIZE IN THE MANUFACTURE OF LOWQUALITY AUTOMOBILES WHY SHOULDN'T IT BE AMERICANS HE THEN EXPLAINS WHY THE MANUFACTURE OF LOWQUALITY CARS MAY REALLY BE A GOOD THING FOR THE COUNTRY WE CAN BUILD CHEAP CARS AND DRIVE EXPENSIVE ONES IF WE BUILD THE CHEAP ONES PROFITABLY THERE IS ONLY ONE GLARING FAULT IN THE ARMCHAIR ECONOMIST THAT'S THE SENTENCE THAT BEGINS THE CHAPTER CURSED WINNERS AND GLUM LOSERS AND READS ECONOMIC THEORY PREDICTS THAT YOU ARE NOT ENJOYING THIS BOOK AS MUCH AS YOU THOUGHT YOU WOULD IN THIS CASE ECONOMIC THEORY IS WRONG 9312230051 931223 BUSINESS BRIEF BANKAMERICA CORP COALITION IN HAWAII OBJECTS TO LIBERTY BANK PURCHASE A COMMUNITY GROUP IN HAWAII IS CHALLENGING BANKAMERICA CORP'S PLAN TO ACQUIRE LIBERTY BANK CHARGING BANKAMERICA HAS DISCRIMINATED AGAINST HAWAIIANS AND FILIPINOS IN ITS LENDING PRACTICES THE HAWAII FAIR LENDING COALITION HAS FILED COMMENTS WITH THE US OFFICE OF THRIFT SUPERVISION IN SAN FRANCISCO ASKING THE AGENCY TO BLOCK THE LIBERTY SALE THE COALITION CITES ITS OWN STUDY OF PUBLICLY AVAILABLE DATA ON BANKAMERICA'S 1992 LENDING ACTIVITY IN HAWAII SUGGESTING THAT THE NUMBER OF LOANS IN CENSUS TRACKS THAT WEREN'T PREDOMINANTLY NATIVE HAWAIIAN OR FILIPINO WERE THREE TO FOUR TIMES HIGHER THAN IN AREAS ASSOCIATED WITH THOSE ETHNIC GROUPS A BANKAMERICA SPOKESWOMAN SAID THE COMPANY BASED IN SAN FRANCISCO STILL WAS EXAMINING THE GROUP'S STUDY SHE SAID THE BANK HAS A STRONG POLICY AGAINST DISCRIMINATION AND HAS RECEIVED SATISFACTORY REVIEWS OF ITS PERFORMANCE UNDER THE FEDERAL COMMUNITY REINVESTMENT ACT 9312230049 931223 TECHNOLOGY BRIEF SYNTEX CORP FRENCH AGENCY SUSPENDS FIRM'S LICENSE FOR KETEROLAC SYNTEX CORP SAID FRENCH HEALTH AGENCIES SUSPENDED THE COMPANY'S LICENSE FOR SELLING KETEROLAC FOLLOWING REPORTS OF ADVERSE SIDE EFFECTS FRANCE'S NATIONAL DRUG AGENCY ORDERED THAT THE SYNTEX PAIN DRUG BE WITHDRAWN FROM HOSPITAL PHARMACIES AND THAT PHYSICIANS CEASE PRESCRIBING IT PENDING FURTHER REVIEW AND ADVICE FROM THE EUROPEAN COMMITTEE FOR PROPRIETARY MEDICINAL PRODUCTS THE ACTION WHICH COVERS THE USE OF THE DRUG ONLY WHEN IT'S INJECTED INTO THE SKIN FOLLOWS A SIMILAR MOVE BY GERMANY LAST SUMMER THE FRENCH AUTHORITIES WERE MOTIVATED BY A SURVEY LINKING THE DRUG TO ABNORMALLY HIGH BLEEDING IN SOME PATIENT'S DIGESTIVE TRACTS OR IN WOUNDS CAUSED BY SURGERY BASED IN PALO ALTO CALIF SYNTEX SAID IT IS DISAPPOINTED IN THE ACTION WHICH THE COMPANY SAID CONTRADICTS CLINICAL RESEARCH DATA INCLUDING A 20000PATIENT US STUDY COMPLETED RECENTLY A COMPANY SPOKESWOMAN SAID THE BLEEDING INCIDENTS MAY HAVE OCCURRED WHEN KETEROLAC WAS USED WITH ANTICOAGULENT DRUGS 9312230048 931223 BUSINESS BRIEF PHONETEL TECHNOLOGIES INC COMPANY TO ACQUIRE ASSETS OF TEXAS PAYPHONE FIRM PHONETEL TECHNOLOGIES INC SAID IT HAS SIGNED AN AGREEMENT TO PURCHASE THE ASSETS OF A PAYTELEPHONE PROVIDER BASED IN TEXAS THE CLEVELAND TELECOMMUNICATIONS COMPANY SAID THE PURCHASE WOULD BE FOR CASH AND THE PARTIAL ASSUMPTION OF DEBT IT DIDN'T DISCLOSE OTHER TERMS OR THE NAME OF THE CONCERN PHONETEL SAID THE ACQUISITION IS EXPECTED TO INCREASE ITS ANNUAL REVENUE BY 65 MILLION TO 7 MILLION THE COMPANY PROJECTS 1993 REVENUE OF 10 MILLION TO 11 MILLION IT EXPECTS TO COMPLETE THE TRANSACTION IN JUNE 1994 PHONETEL'S BUSINESSES INCLUDE INSTALLATION OF PAY TELEPHONES RESELLING OPERATORASSISTED LONGDISTANCE SERVICES AND NATIONAL AND REGIONAL ACCOUNT MANAGEMENT 9312230047 931223 LEISURE & ARTS FILM THE ROAD TO DULL IS PAVED WITH GOOD INTENTIONS BY JULIE SALAMON PHILADELPHIA IS STRUCTURED LIKE THE STANLEY KRAMER MESSAGE PICTURES OF THE 1950S AND 1960S MOVIES LIKE INHERIT THE WIND ON THE BEACH GUESS WHO'S COMING TO DINNER YOU ALWAYS KNEW WITH THE KRAMER MOVIES THAT YOU WOULDN'T ESCAPE WITHOUT A LECTURE ON SOMETHING DARWINISM NUCLEAR WAR INTERRACIAL MARRIAGE THERE WAS ALSO AN UNINTENTIONAL MESSAGE GOOD INTENTIONS DON'T NECESSARILY MAKE GOOD MOVIES LIKE THOSE STANLEY KRAMER PICTURES OF 30 AND 40 YEARS AGO PHILADELPHIA WAS CONCEIVED WITH THE BEST OF INTENTIONS THE FILMMAKERS WANT TO MAKE THE VERY VALID POINT THAT IT IS WRONG TO DISCRIMINATE AGAINST PEOPLE WHO HAVE AIDS THEY APPARENTLY WANTED TO DO THIS HOWEVER WITHOUT ALIENATING THE PEOPLE THEY ARE TRYING TO CONVERT SO THEY HAVE STRIPPED ANYTHING THAT MIGHT BE TAKEN AS ALIENATING TO UNSYMPATHETIC NONGAYS SUCH AS ANY SIGNS OF GAY LIFE OUT OF THIS PICTURE ABOUT A LAWYER WITH AIDS WHO SUES HIS LAW FIRM FOR FIRING HIM IN THE PROCESS THEY HAVE ALSO STRIPPED OUT ALMOST ALL COMPLEXITY REDUCING THE DRAMA TO A FAMILIAR MATCH BETWEEN GOOD AND EVIL YOU'VE HEARD ALL THE SPEECHES BEFORE ONLY THE NOUNS HAVE BEEN CHANGED THE PICTURE GOES THROUGH ITS PACES WITH HUMOR AND THE EARNEST INTELLIGENCE OF A WELLTHOUGHTOUT SERMON THE ONLY SURPRISE COMES IN THE CREDITS THEY CONFIRM THAT THIS SOLIDLY MAINSTREAM FILM WAS INDEED DIRECTED BY JONATHAN DEMME WHOSE ECCENTRIC VISION HAS PRODUCED ECLECTIC FILMS RANGING FROM MELVIN AND HOWARD ABOUT THE GAS STATION ATTENDANTMILKMANFACTORY WORKER CLAIMING TO BE HOWARD HUGHES' RIGHTFUL HEIR TO SILENCE OF THE LAMBS ABOUT A PSYCHOPATHIC SERIAL KILLER WHO SLICED THE SKIN OFF HIS VICTIMS AND SEWED IT INTO CLOTHING IRONICALLY WHEN SILENCE OF THE LAMBS WAS RELEASED MR DEMME WAS ATTACKED AS HOMOPHOBIC BECAUSE THE KILLER IN LAMBS WAS A TRANSSEXUAL THOUGH THE CHARGE WAS SILLY AND THOUGH PHILADELPHIA WAS APPARENTLY ALREADY IN THE WORKS THE MOVIE'S PIOUS TONE MAKES IT FEEL LIKE AN ACT OF PENANCE THE AIDS SUFFERER IN PHILADELPHIA IS A KIND OF SUPERGAYMAN EXCEPT FOR BEING A WORKAHOLIC WHO DOESN'T LET HUMANISM INTERFERE WITH HIS WORK AS A CORPORATE LAWYER HE IS OTHERWISE ACCEPTABLE IN THE EXTREME HE IS YOUNG GOODLOOKING FUNNY SMART HE HAS A SINCERE LOVER AND A WONDERFUL FAMILY WITH JOANNE WOODWARD AS HIS TOUCHINGLY SUPPORTIVE MOTHER AND HE IS PLAYED WITH GREAT EMOTIONAL RESONANCE BY TOM HANKS PERHAPS THE MOST APPEALING ACTOR WORKING IN MOVIES TODAY THE OTHER GOOD GUY THE LAWYER WHO REPRESENTS HIM IS ALSO FAMILIAR THE LEGAL HUSTLER WHO IS FORCED BY A CASE TO OVERCOME HIS OWN BIGOTRY IN THIS CASE HOMOPHOBIA HE IS PLAYED IMPECCABLY BY DENZEL WASHINGTON ANOTHER APPEALING MOVIE STAR THE BAD GUYS ARE THE USUAL SUSPECTS AS WELL OLD WHITE MEN IN POSITIONS OF POWER LED BY AN OMINOUSLY BARRELCHESTED JASON ROBARDS MY FAVORITE MOMENT IN THE PELICAN BRIEF COMES WHEN THE HEROINE A BEAUTIFUL LAW STUDENT JULIA ROBERTS AND THE HERO A HANDSOME NEWSPAPER REPORTER DENZEL WASHINGTON ARE BEING CHASED THROUGH A VAST INDOOR PARKING GARAGE BY ARMED VILLAINS OUR HEROES ARE ELUDING THE PROFESSIONAL KILLERS WITH REMARKABLE DEXTERITY ESPECIALLY GIVEN THE SLIM SKIRT AND HIGH HEELS THAT MS ROBERTS IS WEARING THEY RUN RUN RUN THEN JUST WHEN IT SEEMS THEY ARE TRAPPED THEY LEAP FROM ONE LEVEL OF THE CAR PARK TO THE LEVEL BELOW LAND ONTO THE HOOD OF A CAR HOP OFF AND CONTINUE RUNNING WITHOUT MISSING A BEAT OR EVEN BREAKING A HEEL I CAN'T THINK OF A FUNNIER SCENE IN ANY OF THE CURRENT MOVIE RELEASES NOT EVEN IN WAYNE'S WORLD 2 OF COURSE THE PELICAN BRIEF WHICH FOLLOWS THE LUDICROUS PLOT OF THE JOHN GRISHAM NOVEL ISN'T BILLED AS A COMEDY THOUGH THAT WAS A MISTAKE I KNEW I WAS IN FOR SOME GOOD LAUGHS RIGHT FROM THE START WHEN THE CAMERA SWEPT ACROSS A LAWSCHOOL CLASS OF PALE HARRIED FACES AND UNKEMPT HAIR LOOKING FOR OUR HEROINE THERE SHE IS DARBY SHAW MS ROBERTS THE ONLY PERSON IN THE ROOM WHOSE HAIR IS BEAUTIFULLY ARRANGED WHOSE FACE HAS THE SPECIAL LUMINOUS GLOW OF MOVIESTAR MAKEUP QUICKLY WE LEARN THAT THIS PRINCESS HAS BEEN CHOSEN BY THE HANDSOME CONSTITUTIONAL LAW PROFESSOR SAM SHEPARD TO BE HIS SPECIAL STUDENT THIS SEMESTER THEY ARE SLEEPING TOGETHER DESPITE APPEARANCES DARBY IS NO AIRHEAD BIMBO WHEN TWO SUPREME COURT JUSTICES OF DIVERGENT LEGAL AND POLITICAL VIEWS ARE ASSASSINATED IT IS DARBY AND DARBY ALONE IN ALL THE NATION WHO THINKS TO DISSECT THEIR DECISIONS TO FIND A PRIME SUSPECT HE'S AN OILMAN WHO NEEDS SOME TAX BREAKS SO HE CAN SPOIL THE ENVIRONMENT DARBY'S LEGAL BRIEF ON THE MATTER BECOMES KNOWN AS THE PELICAN BRIEF IN HONOR OF THE BIRDS THIS GREEDY MAN WOULD HAVE DESTROYED THE OILMAN WAS A BIG CONTRIBUTOR TO THE PRESIDENT'S ELECTION CAMPAIGN AND A CLIENT OF A BIG WASHINGTON LAW FIRM SO MANY PEOPLE APPARENTLY HAVE AMPLE REASON TO WANT DARBY KILLED SHE SPENDS MOST OF THE MOVIE RUNNING AWAY FROM PEOPLE TRYING TO KILL HER AND FROM OTHER PEOPLE WHO MAY NOT BE TRYING TO KILL HER ALAN J PAKULAHAS SHOT THE FILM IN THE STYLE OF HIS EARLIER WASHINGTONINTRIGUE FILM ALL THE PRESIDENT'S MEN SO IT ALL LOOKS VERY SOBER AND MENACING EVEN WHEN IT DOESN'T MAKE ANY SENSE AT ALL WRESTLING ERNEST HEMINGWAY IS A SWEET LITTLE PICTURE SOMETIMES TOO SWEET ABOUT THE BRIEF FRIENDSHIP BETWEEN TWO RETIRED MEN LIVING IN FLORIDA RICHARD HARRIS PLAYS A SEAMAN A SAD CRUDE CHARACTER LIVING IN A LITTLE ROOM WHO REALIZES THAT THE EXCITEMENT OF HIS LIFE HASN'T ADDED UP TO MUCH A HALFCENTURY BEFORE HE WRESTLED ERNEST HEMINGWAY AND HE'S LIVED OFF THE TALE EVER SINCE HIS WIVES AND SON DIDN'T MEAN MUCH TO HIM AND NOW THEY'RE RETURNING THE NEGLECT ROBERT DUVALL PLAYS A BARBER A COURTLY LITTLE MAN WHO LOVES TO DANCE BUT NEVER MARRIED THERE'S POIGNANCY TO SPARE IN THESE CHARACTERS ELOQUENTLY PLAYED BY MESSRS HARRIS AND DUVALL AND IN THE FADED GLORY OF SOUTHERN FLORIDA THE FILMMAKERS HAVE STAGED EVERY SCENE LIKE A FINALE KEEPING THE MUSIC AND THE PERFORMERS AT A BIG EMOTIONAL PITCH THROUGHOUT IT'S ENJOYABLY OVERWROUGHT WHAT'S EATING GILBERT GRAPE TELLS THE STORY OF A STRANGE SAD IOWA FARM FAMILY THE FATHER COMMITTED SUICIDE YEARS AGO THE MOTHER WEIGHS 500 POUNDS THE THIRD OF THE FAMILY'S FOUR CHILDREN IS AN 18YEAROLD BOY WHO WASN'T SUPPOSED TO SURVIVE CHILDHOOD BUT WHO HAS INSTEAD SIMPLY REMAINED A CHILD GILBERT JOHNNY DEPP IS IN CHARGE LASSE HALLSTROM WHO DIRECTED MY LIFE AS A DOG HAS ADAPTED PETER HEDGES'S NOVEL WITH A GENTLY WHIMSICAL TOUCH THERE'S TENDER CHARM IN THE ROMANCE BETWEEN JOHNNY DEPP AND JULIETTE LEWIS THE EXOTIC OUTSIDER WHO COMES TO TOWN YOUNG LEONARDO DICAPRIO GIVES A STUNNING PERFORMANCE AS GILBERT'S MENTALLY DISABLED LITTLE BROTHER VIDEO TIP BECAUSE STANLEY KRAMER TOOK ON SUBSTANTIAL SUBJECTS HIS MOVIES ARE OFTEN INTERESTING IN SPITE OF THEMSELVES INHERIT THE WIND FOR EXAMPLE MAY NOT BE GOOD HISTORY BUT IT IS WITHOUT MEANING TO BE A BROADLY ENTERTAINING RECREATION OF THE SCOPES MONKEY TRIAL AT WHICH DARWIN'S THEORY OF EVOLUTION WAS ON TRIAL 9312230046 931223 MARKETING BRIEF NEWS CORP MEDIA CONCERN MULLS BUYING ABOUT 49 OF INDIA'S ZEE TV NEWS CORP SYDNEY AUSTRALIA IS INTERESTED IN BUYING ABOUT 49 OF A HINDILANGUAGE SATELLITETELEVISION CHANNEL KNOWN AS ZEE TV IN NEW YORK A NEWS CORP OFFICIAL INDICATED THAT SUCH A TRANSACTION IS IN THE WORKS IT'S SOMETHING WE'RE INTERESTED IN HE SAID ALTHOUGH HE DECLINED TO SPECIFY HOW MUCH MONEY WOULD BE INVOLVED THE PURCHASE WOULD GIVE NEWS CORP'S HONG KONGBASED STAR TV SATELLITE SERVICE A STRONGER FOOTHOLD IN THE POTENTIALLY LUCRATIVE INDIAN MARKET THE MOVE IS ALL THE MORE IMPORTANT FOR NEWS CORP GIVEN THE COMPANY'S DIFFICULTIES IN EXPANDING INTO CHINA WHICH IS WIDELY REGARDED AS ITS MOST PROMISING MARKET UP UNTIL NOW ZEE TV BOMBAY INDIA WAS PARTLY OWNED BY INDIAN BUSINESSMEN AND FOUR NONINDIAN INSTITUTIONAL INVESTORS THOSE OWNERS EITHER DECLINED TO COMMENT OR COULDN'T BE REACHED FOR COMMENT ON THE REPORTED NEWS CORP DEAL 9312230045 931221 BUSINESS BRIEF ROSS STORES INC DECEMBER SALES FAIL TO MEET CLOTHING RETAILER'S GOALS ROSS STORES INC SAID THAT SALES FOR DECEMBER HAVE BEEN LOWER THAN EXPECTED SO FAR RAISING THE POSSIBILITY OF AN EARNINGS SHORTFALL FOR THE YEAR NORMAN FERBER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE NEWARK CALIF DISCOUNT CLOTHING RETAILER SAID HOLIDAY SALES HAVE BEEN BELOW EXPECTATIONS AND DOWN FROM LAST YEAR ON A COMPARABLE STORE BASIS WE BELIEVE SALES HAVE BEEN IMPACTED BY INTENSE COMPETITION FROM ALL SECTORS OF APPAREL RETAIL HE SAID IN A STATEMENT MR FERBER SAID THAT IF THE TREND CONTINUES FOR THE REST OF THE HOLIDAY SEASON THE COMPANY EXPECTS PERSHARE EARNINGS FOR THE YEAR ENDING JAN 29 COULD BE IN THE RANGE OF 110 TO 115 COMPARED WITH ANALYSTS' ESTIMATES OF 120 TO 125 AND THE YEAREARLIER FIGURE OF 130 9312230044 931223 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/4 HIGH 3 LOW 3 1/8 NEAR CLOSING BID 3 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 318 30 TO 44 DAYS 316 45 TO 119 DAYS 322 120 TO 149 DAYS 326 150 TO 179 DAYS 328 180 TO 239 DAYS 338 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 331 30 DAYS 331 60 DAYS 331 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 262 TWO MONTHS 264 THREE MONTHS 279 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 327 THREE MONTHS 337 SIX MONTHS BANKERS ACCEPTANCES 320 30 DAYS 316 60 DAYS 316 90 DAYS 319 120 DAYS 322 150 DAYS 326 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 5/16 THREE MONTHS 3 1/2 SIX MONTHS 3 3/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 614 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 20 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 306 13 WEEKS 325 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 707 60 DAYS 715 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 699 60 DAYS 709 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 9312230042 931223 LEISURE & ARTS ON DISC A VERY OLD JAZZ TRUMPETER COMES OF AGE BY NAT HENTOFF MANY YEARS AGO I WAS INTERVIEWING A RENOWNED UNINHIBITED JAZZ TROMBONIST ON THE RADIO HE OFTEN ENDED A GIG BY MIXING TOGETHER ALL THE DRINKS LEFT ON THE TABLES INTO A HUGE NIGHTCAP THAT WOULD HAVE DESTROYED MOST LAY DRINKERS ON THE SPOT THE TROMBONIST HAD BROUGHT HIS GIRLFRIEND TO THE STUDIO AND WHILE ONE OF HIS RECORDINGS WAS PLAYING HE ORDERED HER TO KEEP HER EYES ON THE BIG CLOCK ON THE WALL WATCH THAT SECOND HAND HE SAID EVERY TIME IT MOVES YOU'VE LOST A SECOND OF YOUR LIFE SHE WAS STILL STARING WHEN THE PROGRAM WAS OVER SO WAS I THIS WAS A TIME WHEN MANY JAZZ PLAYERS WERE NOT EXPECTED TO LIVE VERY LONG AS THE SECONDS TICKED BY THE TEMPTATIONS OF NIGHT LIFE FOR SOME OF THESE GIVERS AND RECEIVERS OF PLEASURE SEEMED IRRESISTIBLE BIX BEIDERBECKE DIED AT 28 BUNNY BERIGAN AT 34 AND A FRENCH CRITIC SAID WITH SOLEMN FINALITY THAT JAZZ IS A YOUNG MAN'S GAME AS TIME WENT BY HOWEVER THERE WERE MORE AND MORE EXCEPTIONS TO THE ROMANTIC NOTION THAT JAZZ PLAYERS LIKE ICARUS WERE FATED TO FALL EARLY FROM THE SKY LOUIS ARMSTRONG AND DUKE ELLINGTON FOR INSTANCE DIED IN THEIR 70S AND BENNY CARTER A GLOBETROTTING 86YEAROLD IS STILL BOOKED A COUPLE OF YEARS AHEAD TWO YEARS OLDER THAN CARTER TRUMPETERSINGER DOC CHEATHAM MAY BE THE ONLY MUSICIAN STILL ALIVE TO HAVE RECORDED WITH MA RAINEY AND SUCH OTHER MATRIARCHS OF THE BLUES AS CLARA SMITH AND TRIXIE SMITH HE ALSO AT 18 ACCOMPANIED BESSIE SMITH BUT HIS PLAYING CAN'T BE CATEGORIZED BY ANY PERIOD AS HE SAYS HE HAS CONTINUED LEARNING FROM JAZZ TRUMPET PLAYERS ALL HIS LIFE FROM LOUIS ARMSTRONG RED ALLEN TOMMY LADNIER AND BIX BEIDERBECKE TO SUCH MODERN JAZZ IMPROVISERS AS CLIFFORD BROWN AND FATS NAVARRO AS WELL AS NEWER FIGURES OF CONSEQUENCE LIKE ROY HARGROVE AS IS CONSISTENTLY CLEAR IN CHEATHAM'S CURRENT COLUMBIA CD THE EIGHTYSEVEN YEARS OF DOC CHEATHAM HE TURNED 88 AS THE SET WAS RELEASED DOC IS A LYRICAL PERFORMER WITH A SURE AND SUPPLE COMMAND OF DYNAMICS A FLOWING BEAT AND A SENSE OF SELFSURPRISE THAT ALL DURABLE JAZZ PLAYERS HAVE I FIND MYSELF PLAYING DIFFERENT EVERY YEAR CHEATHAM SAYS I CAN'T UNDERSTAND IT BUT THE NEW IDEAS STILL COME TO ME WHAT ALSO MAKES CHEATHAM DISTINCTIVE IS THAT AS A SOLOIST HE IS A LATE BLOOMER A VERY LATE BLOOMER FOR MANY YEARS HE WAS A LEAD TRUMPETER IN SUCH BIG BANDS AS THOSE OF CAB CALLOWAY TEDDY WILSON BENNY CARTER AND CHICK WEBB DURING THOSE YEARS CHEATHAM FELT INCAPABLE OF EVER BECOMING A SOLOIST IN THE SAME LEAGUE WITH THE HORNMEN HE SO MUCH ADMIRED ALSO AS HE POINTED OUT DURING AN INTERVIEW ON NATIONAL PUBLIC RADIO BEING A LEAD TRUMPET PLAYER FOR SO MANY YEARS I WASN'T ALLOWED TO PLAY SOLOS AND IT BOTHERED ME QUITE A LOT NOBODY THOUGHT THAT I COULD PLAY A SOLO I WAS HOLDING MYSELF BACK BEING A SOLOIST WAS LOCKED UP IN MY MIND I COULDN'T GET IT OUT UNTIL IT JUST CAME OUT IT FINALLY CAME OUT WHEN CHEATHAM THEN 60 WAS HIRED BY BENNY GOODMAN WHO WAS LEADING A SMALL COMBO RATHER THAN A BIG BAND CHEATHAM THEREFORE HAD TO TAKE SOLOS ON EVERY NUMBER HE DISCOVERED THAT AT LAST HE COULD BE PART OF ALL THE BEAUTIFUL TRUMPET SOUNDS HE'D BEEN ABSORBING FROM HIS HEROES ALL THROUGH THE YEARS CHEATHAM ALSO OFTEN WORKED WITH SOME OF THE MORE CORYBANTIC LATIN BANDS MACHITO AND RICARDO REY AMONG THEM THEREBY STRENGTHENING HIS CHOPS AS JAZZMEN USED TO SAY AND HIS CONFIDENCE A BRISTLING SWINGING LATIN BAND PROPELLED BY EXULTANT DANCERS IS NO PLACE FOR ANY PLAYER WHO'S HOLDING HIMSELF BACK DOC CHEATHAM'S SINGING WHICH CAN ALSO BE HEARD ON HIS CD IS LAID BACK URBANE AND GENTLY MEMORABLE IT IS AS IF HE WERE SINGING TO HIMSELF LOOKING BACK ON A LIFETIME OF TUNES SOME OF WHICH WERE NEW WHEN HE WAS AMONG THE VOCALS ARE MISS BROWN TO YOU LONG ASSOCIATED WITH BILLIE HOLIDAY WHOM CHEATHAM USED TO ACCOMPANY AND HIS SIGNATURE I GUESS I'LL GET THE PAPERS AND GO HOME ALSO PRESENT ARE A POWERFUL DEEPLY FELT BLUES IN MY HEART A RAMBUNCTIOUS MUSKRAT RAMBLE AND A 'ROUND MIDNIGHT WHICH CONFIRMS THAT CHEATHAM IS A SIGNIFICANT CONTRIBUTOR TO AS WELL AS AN INHERITOR OF THE LEGACY OF JAZZ TRUMPET SOLOISTS WHEN I TURNED 70 HE RECALLS I THINK I WAS ON MY WAY TO BEING A BETTER PLAYER FEELING MORE SATISFACTION WITH HIS WORK HE NONETHELESS REFUSES TO ACCEPT FOR HIMSELF THE OVERALL TITLE OF THE COLUMBIA SERIES IN WHICH HIS CD IS INCLUDED LEGENDARY PIONEERS OF JAZZ CHEATHAM EMPHASIZES THAT LOUIS ARMSTRONG IS INDEED A LEGEND BUT PEOPLE CALL ME A LEGEND JUST BECAUSE OF MY AGE CHEATHAM HAS NOT THOUGHT OF RETIRING MONEY DOESN'T BOTHER ME HE TOLD DOWN BEAT I JUST GO ALONG I THINK EVERYONE SHOULD BE REWARDED FOR WHAT THEY DO BUT PLAYING IS JUST A PART OF ME AND I HAVE ENOUGH OF WHAT I NEED I'M SATISFIED WHEN DOC WAS 85 DIZZY GILLESPIE PAID TRIBUTE TO THE SURVIVOR HE'S PLAYING AS GOOD AS EVER CHEATHAM NEVER DRANK MUCH NEVER USED GRASS HE'S A PERFECT EXAMPLE OF WHAT TO DO FOR LONGEVITY AS A JAZZMAN WHO DIDN'T BECOME A SOLOIST UNTIL HE WAS 60 DOC CHEATHAM NEEDED THOSE BONUS YEARS ON SUNDAY AFTERNOONS A GOOD MANY NEW YORKERS AND VISITORS GO TO HEAR HIM AT SWEET BASIL'S ON SEVENTH AVENUE SOUTH IN GREENWICH VILLAGE THEY DON'T COME BECAUSE OF DOC'S AGE THEY COME BECAUSE HE MAKES THEM FEEL GOOD MR HENTOFF IS A WRITER AND JAZZ CRITIC IN NEW YORK 9312230041 931223 BUSINESS BRIEF HOME OIL CO HOLDER BIDAPPROVAL PLAN IS ADOPTED BY COMPANY HOME OIL CO SAID IT ADOPTED A SHAREHOLDER BIDAPPROVAL PLAN TO GIVE ITS BOARD AND SHAREHOLDERS MORE TIME TO CONSIDER TAKEOVER BIDS AND TO SEEK BETTER OFFERS THE CALGARY ALBERTA OIL AND GAS PRODUCER SAID IT DOESN'T EXPECT ITS POISONPILL PROVISION TO DISCOURAGE TAKEOVER BIDS HOWEVER IT SAID THE PLAN WILL PREVENT BIDDERS FROM ACQUIRING MORE THAN 20 OF HOME UNLESS THE ACQUISITION IS MADE UNDER THE RESTRICTIVE TERMS OF A PERMITTED BID HOME DEFINED A PERMITTED BID AS ONE MADE FOR 100 OF ITS SHARES BY A PERSON HOLDING 10 OR LESS OF THE COMPANY IT SAID SUCH A BID MUST REMAIN OPEN FOR AT LEAST 90 DAYS DURING WHICH TIME NO TENDERED SHARES MAY BE ACQUIRED BY THE BIDDER THE COMPANY SAID THE PLAN TAKES EFFECT IMMEDIATELY BUT MUST RECEIVE SHAREHOLDER RATIFICATION AT HOME'S ANNUAL MEETING NEXT MAY TO STAY IN EFFECT HOME SAID IT ISN'T AWARE OF ANY THIRD PARTIES INTERESTED IN ACQUIRING IT 9312230040 931223 BUSINESS BRIEF STRATUS COMPUTER INC CHARGE IN 1994 4TH PERIOD OF 362 MILLION IS PLANNED STRATUS COMPUTER INC SAID IT PLANS TO TAKE A ONETIME CHARGE OF 362 MILLION FOR WRITEDOWNS OF RESEARCH AND DEVELOPMENT COSTS INCLUDED IN THREE RECENT ACQUISITIONS THE CHARGE WILL BE BOOKED IN THE 1994 FOURTH QUARTER IN LAST YEAR'S FOURTH QUARTER STRATUS BASED IN MARLBORO MASS REPORTED NET INCOME OF 172 MILLION OR 73 CENTS A SHARE ON REVENUE OF 1349 MILLION STRATUS A MAKER OF FAULTTOLERANT COMPUTERS SAID FOURTHQUARTER OPERATING RESULTS EXCLUDING THE CHARGE WILL BE IN LINE WITH SHAREHOLDER EXPECTATIONS ANALYSTS PROJECT THAT STRATUS WILL SHOW OPERATING EARNINGS OF 80 CENTS TO 92 CENTS A SHARE ON REVENUE OF ABOUT 140 MILLION FOR THE QUARTER STRATUS STOCK ROSE 125 CENTS TO 2950 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9312230039 931223 BUSINESS BRIEF GEORGIAPACIFIC CORP DEFICIT OF UP TO 50 MILLION EXPECTED IN FOURTH QUARTER GEORGIAPACIFIC CORP ATLANTA HURT BY WEAK PRICES IN ITS PULP AND PAPER BUSINESS SAID IT EXPECTS TO REPORT A NET LOSS FOR THE FOURTH QUARTER OF BETWEEN 30 MILLION AND 50 MILLION MOST INDUSTRY ANALYSTS HAD BEEN PROJECTING A SMALL PROFIT OF ABOUT EIGHT CENTS A SHARE THE COMPANY'S ESTIMATE WOULD TRANSLATE TO A LOSS OF BETWEEN 33 CENTS AND 56 CENTS A SHARE BASED ON 884 MILLION COMMON SHARES OUTSTANDING IN THE YEAREARLIER QUARTER THE COMPANY HAD NET INCOME OF 104 MILLION OR 121 A SHARE ON REVENUE OF 291 BILLION BEYOND PRICING GEORGIAPACIFIC SAID THE PROJECTED LOSS REFLECTS DOWNTIME AT SEVERAL PLANTS AS WELL AS ESTIMATED AFTERTAX CHARGES OF 21 MILLION FOR COMPENSATION PROGRAMS TIED TO THE COMPANY'S STOCK PRICE IN CONTRAST WITH ITS PULP AND PAPER OPERATIONS GEORGIAPACIFIC SAID ITS BUILDINGPRODUCTS BUSINESS REMAINS STRONG THE COMPANY RELEASED ITS LOSS ESTIMATE AFTER MARKETS CLOSED YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ITS SHARES FELL 125 TO 69 9312230038 931223 BUSINESS BRIEF CLEARLY CANADIAN BEVERAGE CORP EARNINGS IN FOURTH QUARTER TO BE AFFECTED BY CHARGES CLEARLY CANADIAN BEVERAGE CORP SAID IT EXPECTS ONETIME CHARGES IN THE FOURTH QUARTER TO PULL ITS EARNINGS BACK TO ROUGHLY THE YEAREARLIER LEVEL THE VANCOUVER BRITISH COLUMBIA BEVERAGES COMPANY SAID IT EXPECTS 1993 EARNINGS TO BE ABOUT 15 TO 20 CANADIAN CENTS A SHARE 11 TO 15 US CENTS COMPARED WITH 18 CANADIAN CENTS A SHARE LAST YEAR CLEARLY CANADIAN SAID THE FOURTHQUARTER CHARGES RELATE TO LOWERTHANEXPECTED SALES VOLUMES FOR ITS PRODUCTS IT SAID PRODUCTIONRELATED PENALTIES WERE INCURRED AND THAT ADDITIONAL CHARGES WILL STEM FROM AN OVERHAUL OF ITS PRODUCTION LINE THE COMPANY SAID IT PLANS A US10 MILLION ADVERTISING CAMPAIGN TO HELP BUILD BRANDAWARENESS AND TO LAUNCH NEW PRODUCTS IT SAID IT HIRED THREE NEW SENIOR EXECUTIVES TO HELP WITH ITS ADVERTISING AND PRODUCT EXPANSIONS CLEARLY CANADIAN SHARES CLOSED YESTERDAY AT 450 UP 125 CENTS IN NASDAQ STOCK MARKET TRADING 9312230036 931223 BUSINESS BRIEF AT&T CAPITAL CORP FIRM SETS PACT TO ACQUIRE AUSTRALIAN GUARANTEE CORP AT&T CAPITAL CORP MORRISTOWN NJ SAID IT SIGNED AN AGREEMENT TO ACQUIRE AUSTRALIAN GUARANTEE CORP FINANCE LTD HONG KONG A HONG KONG VEHICLE AND EQUIPMENT LEASING AND FINANCE COMPANY TERMS OF THE ACQUISITION WEREN'T DISCLOSED AUSTRALIAN GUARANTEE WHICH HAS ASSETS OF ABOUT 150 MILLION IS A UNIT OF AUSTRALIAN GUARANTEE CORP AND AGC OVERSEAS HOLDINGS LTD THE TRANSACTION IS EXPECTED TO CLOSE IN JANUARY AT&T CAPITAL RECENTLY HAD AN INITIAL PUBLIC OFFERING AND IS MORE THAN 80 OWNED BY AMERICAN TELEPHONE & TELEGRAPH CO AT&T CAPITAL WITH MORE THAN 6 BILLION IN ASSETS IS A MAJOR US EQUIPMENTLEASING AND FINANCE COMPANY INCLUDING BOTH AT&T AND NONAT&T EQUIPMENT IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE AT&T CAPITAL SHARES CLOSED AT 2375 UP 25 CENTS 9312230035 931223 BUSINESS BRIEF EASTEX ENERGY INC NET LOSS FOR FOURTH QUARTER EARNINGS FOR YEAR EXPECTED EASTEX ENERGY INC SAID IT EXPECTS TO REPORT A NET LOSS FOR THE FOURTH QUARTER BUT THE HOUSTON NATURALGAS TRADING COMPANY STILL EXPECTS TO MAKE MONEY FOR THE YEAR IN THE YEAREARLIER FOURTH QUARTER EASTEX EARNED 11 MILLION OR 23 CENTS A SHARE FOR THE FIRST THREE QUARTERS OF THIS YEAR THE COMPANY'S NET WAS 867000 OR 16 CENTS A SHARE EASTEX ATTRIBUTED ITS EXPECTED QUARTERLY LOSS TO SOFT NATURALGAS MARKETS AND EXCESS STORAGE INVENTORY THE COMPANY DECLINED TO SAY HOW BIG THE LOSS WOULD BE SEPARATELY EASTEX ANNOUNCED ITS INTENTION TO BUY CERTAIN NATURALGAS ASSETS FROM NIPSCO ENERGY SERVICES INC A UNIT OF NIPSCO INDUSTRIES INC HAMMOND IND IN A STOCK TRANSACTION VALUED IN EXCESS OF 10 MILLION IF THE TRANSACTION IS COMPLETED NIPSCO ENERGY SERVICES WILL HAVE A 25 EQUITY STAKE IN EASTEX NIPSCO INDUSTRIES IS AN ENERGYBASED HOLDING COMPANY WHOSE SUBSIDIARIES SERVE ELECTRIC AND GAS CUSTOMERS IN NORTHERN INDIANA 9312230034 931223 BUSINESS BRIEF SCIMED LIFE SYSTEMS INC CONCERN'S STOCK SLIDES 84 ON DROP IN 3RDQUARTER NET SCIMED LIFE SYSTEMS INC'S OFTEN VOLATILE STOCK FELL 3125 OR 84 TO 34 IN HEAVY NASDAQ STOCK MARKET TRADING YESTERDAY ON NEWS THAT ITS FISCAL THIRDQUARTER EARNINGS FELL 22 THE MINNEAPOLIS CONCERN WHICH MAKES DISPOSABLE MEDICAL DEVICES SAID IT EARNED 103 MILLION OR 67 CENTS A SHARE FOR THE QUARTER ENDED NOV 30 COMPARED WITH 132 MILLION OR 87 CENTS A SHARE A YEAR EARLIER SALES FOR THE QUARTER ROSE 17 TO 663 MILLION FROM 568 MILLION THE COMPANY CITED SEVERAL REASONS WHY THE EARNINGS FELL SHORT OF EXPECTATIONS SUCH AS THE TERMINATION OF THE SALE OF ITS EXPRESS CATHETER IN THE US STARTUP COSTS FOR ITS TRANSITION TO A DIRECT SALES ORGANIZATION IN WESTERN EUROPE AND JAPAN AND HIGHER LEGAL EXPENSES BECAUSE OF A LONGERTHANEXPECTED PATENT TRIAL SCIMED QUIT SELLING EXPRESS IN THE US ON NOV 30 IN ACCORDANCE WITH AN AGREEMENT WITH A DIVISION OF ELI LILLY & CO FUTURE SALES AND EARNINGS WILL BE HURT BY THE TERMINATION OF EXPRESS SALES IN THE US THE COMPANY SAID 9312230033 931223 CREDIT RATINGS HANWA CO TOKYO MOODY'S INVESTORS SERVICE INC SAID IT LOWERED THE SENIOR DEBT RATING OF THIS TRADING HOUSE TO SINGLEB1 FROM SINGLEBA2 AFFECTING ABOUT 100 BILLION YEN 8993 MILLION OF LONGTERM DEBT THE RATING AGENCY SAID HANWA HAS BEEN BURDENED BY SIGNIFICANT UNREALIZED LOSSES IN ITS SECURITIES INVESTMENTS AS WELL AS BY NONPERFORMING LOANS TO A NONBANK SUBSIDIARY AND RISKS INVOLVED IN THESE INVESTMENTS REMAIN HIGH IN RELATION TO ITS CAPITAL THE COMPANY'S RELIANCE ON FINANCIAL ARBITRAGE ACTIVITIES HAS MADE ITS EARNINGS HIGHLY VULNERABLE TO VOLATILE MARKET CONDITIONS WHILE ITS CORE BUSINESS OF STEELPRODUCT TRADING HAS BEEN HURT BY THE SLUGGISH JAPANESE ECONOMY MOODY'S SAID MOODY'S SAID IT EXPECTS THAT BECAUSE OF THESE FACTORS HANWA'S FINANCIAL FLEXIBILITY WILL CONTINUE TO DETERIORATE HANWA BASED IN OSAKA HAD GROSS TRADING VOLUME OF 281 BILLION YEN FOR THE SIX MONTHS ENDED SEPT 30 SCECORP ROSEMEAD CALIF MOODY'S INVESTORS SERVICE INC CONFIRMED THE DOUBLEA3 SENIOR DEBT RATING AND OTHER LONGTERM DEBT RATINGS OF THE HOLDING COMPANY'S SOUTHERN CALIFORNIA EDISON CO UNIT AND DOWNGRADED THE PREFERRED STOCK RATING TO SINGLEA1 FROM DOUBLEA3 ABOUT 7 BILLION OF SECURITIES ARE AFFECTED THE RATINGS AGENCY SAID THE DOWNGRADE REFLECTS THE UTILITY'S CURRENT RISK PROFILE WHILE THE AFFIRMATION SUPPORTS THE EXPECTATION THAT IT SHOULD MAINTAIN STRONG OPERATING AND FINANCIAL PERFORMANCE CONFIRMED ARE EDISON'S FIRST MORTGAGE BONDS RATED DOUBLEA3 SHELF REGISTRATION OF FIRST MORTGAGE BONDS RATED P DOUBLEA3 NOTES RATED A1 SHELF REGISTRATION OF NOTES RATED P A1 SECURED POLLUTION CONTROL AND INDUSTRIALDEVELOPMENT BONDS RATED DOUBLEA3 UNSECURED POLLUTION CONTROL AND INDUSTRIALDEVELOPMENT BONDS RATED SINGLEA1 RATINGS DOWNGRADED ARE THE PREFERRED STOCK TO SINGLEA1 FROM DOUBLEA3 AND THE SHELF REGISTRATION OF PREFERRED STOCK TO P A1 FROM P DOUBLEA3 9312230032 931223 BUSINESS BRIEF INTERNATIONAL TECHNOLOGY CORP FIRM EXPECTS TO BREAK EVEN IN QUARTER AS REVENUE SLIPS INTERNATIONAL TECHNOLOGY CORP SAID IT SEES EARNINGS AT BREAKEVEN IN THE FISCAL THIRD QUARTER ENDING DEC 31 AS A RESULT OF REVENUE RUNNING ABOUT 10 LOWER THAN IN RECENT QUARTERS ANALYSTS' FORECASTS FOR THE THIRD QUARTER WERE ABOUT SIX CENTS A SHARE PRIOR TO THE ANNOUNCEMENT A SPOKESMAN FOR THE TORRANCE CALIF COMPANY SAID OVER THE LAST SIX QUARTERS REVENUE HAS BEEN IN THE 100 MILLIONTO103 MILLION RANGE HE ADDED IN THE YEAREARLIER THIRD QUARTER THE COMPANY HAD A NET LOSS OF 82 MILLION OR 24 CENTS A SHARE AFTER ONETIME CHARGES AND LOSSES FROM DISCONTINUED OPERATIONS EXCLUDING THE UNUSUAL ITEMS EARNINGS WERE ABOUT SIX CENTS A SHARE SHARES OF THE ENVIRONMENTAL MANAGEMENT CONCERN CLOSED AT 350 DOWN 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING INTERNATIONAL TECHNOLOGY SAID THE REVENUE SHORTFALL WAS DUE TO LOW LEVELS OF COMMERCIAL WORK MORE PRICING PRESSURE AND ADDITIONAL DELAYS IN THE IMPLEMENTATION OF CERTAIN GOVERNMENT PROGRAMS 9312230031 931223 BUSINESS BRIEF RODMAN & RENSHAW CAPITAL GROUP MEXICO'S ABACO GROUP UNIT CLOSES TENDER OFFER FOR STAKE RODMAN & RENSHAW CAPITAL GROUP INC SAID THE BROKERAGE UNIT OF ABACO GRUPO FINANCIERO SA DE CV FORMALLY CLOSED ON ITS EARLIERANNOUNCED 1050ASHARE TENDER OFFER FOR A 51 RODMAN STAKE THE BROKERAGE CONCERN SAID ABOUT 42 MILLION SHARES OR 96 OF ITS OUTSTANDING COMMON WERE TENDERED ABACO CASA DE BOLSA ACCEPTED 2363003 SHARES ON A PRORATA BASIS AND PAID 248 MILLION TO THE DEPOSITARY THE DEPOSITARY WILL DISTRIBUTE THE FUNDS TO TENDERING RODMAN SHARES AS SOON AS PRACTICABLE ABACO SAID IN A RELEASE THAT THE ACQUISITION OF THE MAJORITY INTEREST MEANS THAT WE ARE ENTERING THROUGH A LARGE DOOR TO THE MOST IMPORTANT CAPITAL MARKET OF THE WORLD AND THROUGH RODMAN & RENSHAW CHICAGO WE WILL BE THE FIRST MEXICAN COMPANY WITH SEATS ON THE MAIN MARKETS OF THE FINANCIAL WORLD ABACO MADE ITS OFFER TO RODMAN & RENSHAW IN NOVEMBER AFTER THE US COMPANY PUT ITSELF UP FOR POSSIBLE AUCTION 9312230030 931223 BUSINESS BRIEF BRUSH WELLMAN INC FOURTHPERIOD NET EXPECTED TO TOP LAST YEAR'S RESULTS BRUSH WELLMAN INC REBOUNDING FROM A WEAK FIRST HALF EXPECTS FOURTHQUARTER NET INCOME OF 14 TO 19 CENTS A SHARE SLIGHTLY BEATING LAST YEAR'S 21 MILLION OR 13 CENTS A SHARE SAID CHIEF EXECUTIVE OFFICER GORDON D HARNETT BRUSH WELLMAN WILL HAVE NET OF 32 TO 37 CENTS A SHARE FOR 1993 COMPARED WITH 65 CENTS IN 1992 MR HARNETT SAID IN AN INTERVIEW THE CLEVELAND MAKER OF BERYLLIUM METAL CERAMICS AND OTHER SPECIALTY METALS EXPECTS TO POST ABOUT 290 MILLION IN SALES FOR 1993 UP FROM 668 MILLION IN 1992 ITS FIRST ANNUAL SALES INCREASE SINCE 1988 MR HARNETT SAID CONTINUED GROWTH IN THE COMPANY'S BERYLLIUM COPPERALLOY BUSINESS BOTH DOMESTICALLY AND IN ASIA HELPED BOOST SALES STILL THE COMPANY MADE A SHAKY START THIS YEAR AS EARNINGS PLUNGED 95 IN THE SECOND QUARTER BECAUSE OF WEAK AEROSPACE AND DEFENSE DEMAND FOR BERYLLIUM MR HARNETT SAID 9312230029 931223 BUSINESS BRIEF HYAL PHARMACEUTICAL CORP PACT TO LICENSE 2 PRODUCTS SIGNED WITH FH FAULDING HYAL PHARMACEUTICAL CORP SAID IT SIGNED ITS FIRST COMMERCIAL AGREEMENT FOR PRODUCTS USING ITS HYALURONIC ACID DRUGDELIVERY SYSTEM HYAL SIGNED AN AGREEMENT IN PRINCIPLE WITH FH FAULDING & CO OF AUSTRALIA TO LICENSE TWO HYAL PRODUCTS A TOPICAL TREATMENT FOR BASAL CELL CARCINOMA AND ACTINIC KERATOSIS AND A TOPICAL TREATMENT FOR PAIN CAUSED BY ARTHRITIS AND OTHER DISORDERS THE AGREEMENT COVERS AUSTRALIA NEW ZEALAND MALAYSIA AND SINGAPORE AND INCLUDES UPFRONT FEES AND ROYALTIES BASED ON SALES PAYABLE TO HYAL SUBJECT TO REGULATORY APPROVAL OF THE PRODUCTS IN THOSE COUNTRIES TERMS OF THE AGREEMENT WEREN'T DISCLOSED A FINAL AGREEMENT IS EXPECTED TO BE SIGNED IN FEBRUARY HYAL SAID PROCEEDS FROM THE VENTURE WILL GO TO HYAL PHARMACEUTICAL AUSTRALIA LTD WHICH IS CURRENTLY MAKING AN INITIAL PUBLIC OFFERING THE SUBSIDIARY WILL BE 60OWNED BY HYAL PHARMACEUTICAL CORP BASED IN MISSISSAUGA ONTARIO WHEN THE OFFERING IS COMPLETED 9312230028 931223 BUSINESS BRIEF ENHANCED IMAGING TECHNOLOGIES INC COMPANY AGREES TO ACQUIRE UNIT OF PPG FOR 55 MILLION ENHANCED IMAGING TECHNOLOGIES INC SAID IT SIGNED A LETTER OF INTENT TO BUY MOST OF PPG INDUSTRIES INC'S BIOMEDICAL SYSTEMS DIVISION FOR ABOUT 55 MILLION THE AGREEMENT INCLUDES PPG'S OPERATIONS IN LENEXA KAN AND FREIBURG GERMANY BUT DOES NOT INCLUDE ITS BLOODGAS SENSOR BUSINESS IN LA JOLLA CALIF THE TRANSACTION IS EXPECTED TO BE COMPLETED IN THE FIRST QUARTER OF 1994 PPG BASED IN PITTSBURGH SAID IT EXPECTS TO TAKE A PRETAX CHARGE AGAINST FOURTHQUARTER EARNINGS OF ABOUT 30 MILLION AS A RESULT OF THE SALE THE STOCK OF THE COATING CHEMICAL AND GLASS COMPANY ROSE 175 TO 7550 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ENHANCED IMAGING BASED IN IRVINE CALIF SAID THE BUSINESSES BEING ACQUIRED ARE EXPECTED TO GENERATE MORE THAN 150 MILLION IN REVENUE IN 1993 AND WILL HELP MAKE THE COMPANY A COMPREHENSIVE INTERNATIONAL SUPPLIER OF CARDIOLOGY PRODUCTS SEPARATELY ENHANCED IMAGING SAID IT WOULD TAKE A ONETIME CHARGE AGAINST FOURTHQUARTER EARNINGS OF 17 MILLION AS IT TAKES VARIOUS STEPS TO LOWER COSTS AND IMPROVE OPERATING EFFICIENCIES THOSE STEPS INCLUDED A REDUCTION OF EIGHT EMPLOYEES AT ITS VARIX SUBSIDIARY THE COMPANY'S STOCK ROSE 50 CENTS TO 425 IN NASDAQ STOCK MARKET TRADING 9312230027 931223 HANSON TALKS BUY BORDEN BREAK DOWN FOOD AND CHEMICALS FIRM SAYS IT WILL ANNOUNCE REVAMPING IN JANUARY BY SUEIN L HWANG AND LAURIE P COHEN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TALKS OVER A POSSIBLE ACQUISITION OF BORDEN INC BY HANSON PLC HAVE BROKEN DOWN ACCORDING TO PEOPLE CLOSE TO BORDEN'S BOARD IN A STATEMENT ISSUED AFTER A SPECIAL BOARD MEETING BORDEN SAID IT IS CLOSE TO COMPLETION OF ITS LONGPROMISED RESTRUCTURING PLAN AND WILL ANNOUNCE IT BY EARLY JANUARY WHILE BORDEN SAID IT HAS EXPLORED THE POSSIBILITY OF SELLING THE COMPANY IT SAID IT IS NOT CURRENTLY ENGAGED IN ANY MERGER TALKS AND IS NOT AWARE OF ANYONE SEEKING TO ENGAGE IN SUCH DISCUSSIONS THE STATEMENT FOLLOWS A REPORT IN THE WALL STREET JOURNAL THAT HANSON AN ANGLOAMERICAN CONGLOMERATE WAS CONSIDERING AN OFFER FOR THE FOOD AND CHEMICALS COMPANY WHICH HAD SIGNIFICANT EARNINGS DECLINES IN THE THIRD QUARTER IN ALL OF ITS MAJOR BUSINESS UNITS PEOPLE FAMILIAR WITH THE SITUATION SAY TALKS BETWEEN THE TWO COMPANIES BROKE DOWN IN RECENT DAYS IT WAS AT LEAST AN OPTION UNDER CONSIDERATION SAYS ONE OF THE INDIVIDUALS BUT IT BECAME APPARENT THAT EVEN IF HANSON WAS WILLING TO BID FOR THE ENTIRE COMPANY WHICH IT HADN'T DECIDED TO DO ANY BID WOULD BE NOWHERE NEAR THE PRICE THAT BORDEN OFFICIALS WERE HOPING TO OBTAIN OFFICIALS AT BORDEN AND HANSON DECLINED TO COMMENT BORDEN'S INDICATED MARKET VALUE IS 243 BILLION IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY ITS SHARES FELL TO 1725 DOWN 1875 OR 98 AN EXECUTIVE AT ANOTHER LARGE NEW YORK COMPANY WHO LOOKED AT BORDEN LAST MONTH SAID HE DIDN'T BELIEVE THE COMPANY WAS WORTH MUCH MORE THAN THE 18ASHARE RANGE IN WHICH THE STOCK PRICE HAS LINGERED IT WOULD BE IMPOSSIBLE TO SELL SOME OF BORDEN'S DIVISIONS HE SAID KOHLBERG KRAVIS ROBERTS & CO AND NESTLE SA ARE ALSO UNDERSTOOD TO HAVE LOOKED OVER BORDEN'S PORTFOLIO AND PASSED NEITHER KKR NOR NESTLE COULD BE REACHED TO COMMENT ANALYSTS SAID YESTERDAY'S STATEMENT IS YET ANOTHER DISAPPOINTMENT BORDEN HAS BEEN HOLDING OUT THE PROMISE OF A RESTRUCTURING PLAN FOR MONTHS AND HAD SAID IT WOULD ANNOUNCE A PLAN TO SELL OFF SOME ASSETS BY THE END OF THE YEAR FRANKLY THERE'S NO EASY FIX SAID JOHN MCMILLIN OF PRUDENTIAL SECURITIES INC OBVIOUSLY THEY'RE STRUGGLING WITH A LOT OF THINGS THAT AREN'T EASY TO SELL THE POSTPONEMENT ALSO FUELS SPECULATION THAT BORDEN COULD GO FURTHER THAN THE PLAN PROPOSED BY FORMER CHIEF EXECUTIVE ANTHONY S D'AMATO WHO RESIGNED UNDER PRESSURE THIS MONTH MR D'AMATO'S PLAN WHICH WAS PRESENTED TO THE BOARD NOV 30 AND IS STILL ON THE TABLE CALLED FOR THE SALE OF BORDEN'S SNACK FOODS DIVISION WHICH HAD REVENUE OF 125 BILLION LAST YEAR AND SOME BRANDS IN THE NICHE GROCERY UNIT BUT THE PLAN ADVOCATED RETAINING THE COMPANY'S CHEMICALS PASTA AND DAIRY BUSINESSES THE LATEST TURMOIL CAPS A DIFFICULT YEAR FOR BORDEN WHICH HAS STRUGGLED WITH A FARFLUNG EMPIRE THAT INCLUDES EVERYTHING FROM CRACKER JACK AND CREMORA NONDAIRY CREAMER TO WALLPAPER BORDEN HAS HAD A PARTICULARLY ROUGH TIME WITH ITS SNACK FOOD BUSINESS WHICH MANY BELIEVE WILL EVENTUALLY BE PUT ON THE AUCTION BLOCK MORE RECENTLY THE COMPANY'S PASTA UNIT HAS ALSO SEEN MARKET SHARE LOSSES 9312230026 931223 POLITICS & POLICY ANTITRUST CASE AGAINST MIT IS DROPPED ALLOWING LIMITED EXCHANGE OF AID DATA BY STEVE STECKLOW AND WILLIAM M BULKELEY STAFF REPORTERS OF THE WALL STREET JOURNAL CAMBRIDGE MASS THE JUSTICE DEPARTMENT DROPPED ITS ANTITRUST CASE AGAINST THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY IN A SETTLEMENT THAT ALLOWS COLLEGES TO EXCHANGE LIMITED INFORMATION IN THE AWARDING OF STUDENT FINANCIAL AID BOTH SIDES CLAIMED VICTORY IN THE CASE THE JUSTICE DEPARTMENT MAINTAINED THAT THE SETTLEMENT EFFECTIVELY ENDS THE PRACTICE OF OVERLAP IN WHICH MIT AND IVY LEAGUE COLLEGES MET EACH SPRING AND AGREED TO OFFER ESSENTIALLY THE SAME AMOUNT OF FINANCIAL AID TO STUDENTS WHO WERE ACCEPTED AT MORE THAN ONE OF THE SCHOOLS THAT ACTIVITY WE'VE ALWAYS HELD WAS FLATOUT ILLEGAL SAID ROBERT E LITAN DEPUTY ASSISTANT ATTORNEY GENERAL FOR THE ANTITRUST DIVISION THIS SETTLEMENT AFFIRMS THAT POSITION BUT MIT PRESIDENT CHARLES M VEST SAID THE SETTLEMENT PROVIDES THE INSTITUTION MAYBE 98 PERCENT OF WHAT MIT HAD SOUGHT AND THAT IT AUTHORIZES A MORE MODERN SYSTEM TO REPLACE THE OVERLAP PROCESSES AT HEART I INTERPRET THIS AGREEMENT TO DROP ALL ACTIONS AGAINST MIT AS AN EXPLICIT RECOGNITION OF THE FACT THAT WHAT WE WERE AFTER IS A WORKABLE SYSTEM TO ENSURE THAT OUR LIMITED FINANCIAL AID FUNDS GO TO THOSE STUDENTS WHO NEED THEM UNDER THE SETTLEMENT COLLEGES THAT AGREE TO ADMIT STUDENTS WITHOUT REGARD TO THEIR ECONOMIC CIRCUMSTANCES MAY MEET TO DISCUSS THEIR FINANCIALAID POLICIES BUT THEY MAY NOT DISCUSS INDIVIDUAL GRANTS TO SPECIFIC STUDENTS THEY CAN COMPARE NEED CLAIMS PRESENTED BY APPLICANTS TO DISCOURAGE FRAUD AFTER STUDENTS HAVE BEEN ADMITTED THE COLLEGES MAY EXCHANGE DATA ON CASES IN WHICH ONE COLLEGE OFFERED A PARTICULAR STUDENT SIGNIFICANTLY MORE AID THAN A COMPETING INSTITUTION THE SETTLEMENT ALSO PROHIBITS COLLEGES FROM FIXING EITHER TUITION OR FACULTY SALARIES SHELDON STEINBACH GENERAL COUNSEL OF THE AMERICAN COUNCIL ON EDUCATION IN WASHINGTON WHICH REPRESENTS 1700 UNIVERSITIES SAID OTHER COLLEGES VIEW THE SETTLEMENT AS A VICTORY BECAUSE IT IS A WORKABLE AND REASONABLE WAY TO RESUME COMPARISON OF FINANCIAL AID AND TO PREVENT BIDDING WARS FOR CERTAIN STUDENTS TO THE EXTENT THEY CAN STOP THE BIDDING WAR IT WILL BE IN THE BEST INTERESTS OF THE YOUNG MEN AND WOMEN APPLYING FOR AID HE ADDED HOWEVER NEIL L RUDENSTINE PRESIDENT OF HARVARD UNIVERSITY AND CHAIRMAN OF THE IVY LEAGUE CRITICIZED THE AGREEMENT SAYING IT WILL BE FINANCIALLY IMPOSSIBLE FOR ALL BUT A VERY SMALL HANDFUL OF THE NATION'S COLLEGES AND UNIVERSITIES TO PARTICIPATE IN THE KIND OF COOPERATIVE ARRANGEMENTS THAT THE SETTLEMENT DEFINES AS ACCEPTABLE THE OTHER IVY LEAGUE SCHOOLS HE SAID SHARE THE VIEW THAT THE SETTLEMENT WHILE TO SOME EXTENT ENCOURAGING WILL NOT BY ITSELF BRING ABOUT AN EFFECTIVE INCLUSIVE SYSTEM OF NEEDBASED FINANCIAL AID ALL EIGHT IVY LEAGUE INSTITUTIONS PREVIOUSLY SETTLED WITH THE JUSTICE DEPARTMENT AGREEING IN 1991 NOT TO EXCHANGE FINANCIALAID INFORMATION MIT INSTEAD WENT TO COURT LOSING ITS CASE IN 1992 BUT A THREEJUDGE US COURT OF APPEALS PANEL REVERSED THE LOWER COURT'S RULING IN SEPTEMBER SETTING THE STAGE FOR SETTLEMENT TALKS BETWEEN MIT AND THE JUSTICE DEPARTMENT THE AGREEMENT WITH MIT STIPULATES THAT THE OTHER IVY LEAGUE SCHOOLS AS WELL AS OTHER NONPROFIT COLLEGES MAY FOLLOW THE SAME NEW GUIDELINES THAT REGULATE THE EXCHANGE OF FINANCIALAID INFORMATION STEVEN SALOP A GEORGETOWN UNIVERSITY LAW PROFESSOR WHO HAS WRITTEN ABOUT THE CASE SAID THE AGREEMENT IS GETTING CLOSE TO OVERTURNING ANTITRUST LAW RULINGS BY THE SUPREME COURT THAT HOLD THAT IMPROVING SOCIAL WELFARE CAN'T BE A DEFENSE OF PRICEFIXING HE SAID IT RAISES QUESTIONS WHETHER NONPROFIT HOSPITALS OR INSURERS LIKE BLUE CROSS COULD AGREE TO FIX PRICES IF THEY MADE A COMMITMENT TO SUBSIDIZE THE UNINSURED 9312230025 931223 ALEX BROWN PAYS TO KEEP ITS NAME 105 MILLION BALTIMORE WHAT'S IN A NAME ABOUT 105 MILLION IF YOU ARE INVESTMENT BANKING FIRM ALEX BROWN INC THE FIRM SAID IT HAD AGREED TO PAY THAT SUM TO ACQUIRE OWNERSHIP RIGHTS TO THE NAME ALEX BROWN THE FIRM HAS BEEN USING THE NAME UNDER AN AGREEMENT WITH CERTAIN LINEAL DESCENDANTS OF ALEXANDER BROWN THE FOUNDER OF THE FIRM IN 1800 THE COMPANY WILL AMORTIZE THE COSTS FOR ACCOUNTING PURPOSES OVER 40 YEARS AB KRONGARD CHIEF EXECUTIVE OFFICER SAID THE BUSINESS PRINCIPLES AND SPIRIT OF ALEXANDER BROWN AND HIS LINEAL DESCENDANTS HAVE BEEN THE BASE UPON WHICH WE HAVE BUILT OUR BUSINESS FOR ALMOST 200 YEARS HE SAID OFFICIALS ARE VERY PLEASED THAT PERMANENT IDENTIFICATION OF THE NAME WITH THE FIRM IS ENSURED A SPOKESWOMAN FOR ALEX BROWN CALLED THE AGREEMENT A NATURAL EXTENSION OF BEING A PUBLIC COMPANY THE PREVIOUS AGREEMENT WOULD HAVE EXPIRED AT THE END OF 1995 LINEAL DESCENDANTS OF ALEXANDER BROWN INCLUDE ALEX BROWN INC CHAIRMAN BENJAMIN H GRISWOLD IV 53 AND JACK S GRISWOLD A FORMER MANAGING DIRECTOR 9312230024 931223 TREASURY SUPPORTS GREATER USE OF RULES FOR TRANSFER PRICING' WASHINGTON THE TREASURY WILL PUSH FOR GREATER CORPORATE USE OF NEW TRANSFER PRICING RULES AND SEEK TO SIMPLIFY INTERNATIONAL TAX LAWS SAID LESLIE SAMUELS ASSISTANT SECRETARY FOR TAX POLICY THE TREASURY EXPECTS THAT 150 TO 200 COMPANIES WILL TAKE ADVANTAGE OF THE NEW TRANSFERPRICING RULES NEXT YEAR THE RULES ALLOW DOMESTIC AND FOREIGN CORPORATIONS TO SET PRICES WHICH THE INTERNAL REVENUE SERVICE CAN REVIEW IN ADVANCE FOR TRANSFERS OF GOODS AND SERVICES BETWEEN CORPORATE UNITS THE IDEA IS TO AVOID COSTLY AND TIMECONSUMING LEGAL BATTLES OVER HOW MUCH TAX IS OWED ON TRANSACTIONS BETWEEN CORPORATE UNITS THE TREASURY CONSIDERS PAST EXPERIMENTAL USE OF TRANSFERPRICING RULES A SUCCESS MR SAMUELS SAID IN AN INTERVIEW AND HE HOPES THAT MORE COMPANIES WILL USE THEM IN THE FUTURE WE'RE GOING TO BE PROMOTING THAT PROCESS HE SAID THE DEPARTMENT ISSUED ITS FINAL RULES ON TRANSFER PRICING FRIDAY THE TAX OFFICE ALSO WILL LOOK FOR WAYS TO SIMPLIFY INTERNATIONAL TAX RULES THE RULES HAVE GOTTEN TOO COMPLEX HE SAID THE TAXPAYER AND THE GOVERNMENT HAVE A HARD TIME FIGURING THEM OUT HE EXPECTS THE IRS WILL PROPOSE WAYS OVER THE NEXT COUPLE OF YEARS TO SIMPLIFY INTERNATIONAL TAXES HE ALSO SAID THAT THE TREASURY HAS FILED REGULATIONS TO CLARIFY HOW PARTNERSHIPS SPLIT TAX LIABILITIES THE SOCALLED 704C REGULATIONS ARE INTENDED AMONG OTHER THINGS TO CURB THE PRACTICE BY SOME PARTNERSHIPS OF SHIFTING INCOME TO PARTNERS WITH LOWER TAX RATES OR WHO ARE EXEMPT FROM TAXES WE THINK THERE ARE SOME DEALS OUT THERE THAT YOU WOULD WANT TO STOP IF YOU KNEW ABOUT THEM MR SAMUELS SAID 9312230023 931223 INTERNATIONAL BANCO ESPANOL HIRES WOLFENSOHN TO HELP WITH CAPITAL INCREASE LONDON IN THE LATEST TWIST TO A LONGRUNNING SAGA IN SPANISH BANKING BANCO ESPANOL DE CREDITO ANNOUNCED THAT IT IS HIRING THE US INVESTMENT BANK JAMES D WOLFENSOHN INC AS AN ADVISER ALONGSIDE JP MORGAN & CO THE ANNOUNCEMENT FOLLOWS MONTHS OF SPECULATION ABOUT BANESTO AS THE BANK IS KNOWN AND ITS RELATIONSHIP WITH JP MORGAN EARLIER THIS YEAR JP MORGAN LED THE FIRST TWO STAGES OF A THREESTAGE CAPITAL INCREASE INTENDED TO RAISE 1 BILLION FOR THE SPANISH BANK RECENTLY HOWEVER BANESTO CONFIRMED IT HAD DECIDED TO POSTPONE THE THIRD STAGE AN ISSUE OF CONVERTIBLE BONDS FOR ABOUT 400 MILLION UNTIL NEXT YEAR BANESTO OFFICIALS SAID AT THE TIME THAT THE DELAY WAS TO WAIT FOR BETTER MARKET CONDITIONS BUT NEWS OF THE POSTPONEMENT PROMPTED SPECULATION THAT BANESTO MIGHT HAVE FALLEN OUT WITH JP MORGAN AND MIGHT BE ABOUT TO ANNOUNCE A DEFICIT FOR 1993 BECAUSE OF HEAVY PROVISIONS FOR LOSSES ON BAD LOANS BANK OF SPAIN REGULATIONS REQUIRE MONEYLOSING BANKS TO SUSPEND INTEREST PAYMENTS ON SUBORDINATED DEBT OUTSTANDING BANESTO'S RESULTS FOR 1993 WON'T BE MADE PUBLIC UNTIL FEBRUARY OR MARCH BUT A SPOKESMAN SAID RECENTLY THAT THE BANK EXPECTS TO SHOW NEITHER A PROFIT NOR A LOSS A JP MORGAN SPOKESMAN SAID THAT THE US INVESTMENT BANK EXPECTED TO LEAD THE CONVERTIBLE BOND ISSUE WHEN IT TAKES PLACE AS PART OF THE NEW COADVISER ARRANGEMENT VIOLY MCCAUSLAND DE HARPER THE HIGHPROFILE INVESTMENT BANKER WHO HAD BEEN ADVISING BANESTO ON BEHALF OF JP MORGAN WILL SWITCH TO JAMES D WOLFENSOHN AS A SENIOR PARTNER THE BANK ANNOUNCED 9312230022 931223 FINANCING BUSINESS ADELPHIA COMMUNICATIONS CORP ADELPHIA COMMUNICATIONS CORP COUDERSPORT PA SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF 65 MILLION CLASS A COMMON SHARES THE COMPANY WHICH OWNS OR MANAGES CABLETELEVISIONS SYSTEMS IN 11 STATES SAID IT EXPECTS TO ENTER AN AGREEMENT WITH THE FAMILY OF ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER JOHN J RIGAS SUCH THAT THE FAMILY AT THE TIME OF THE OFFERING WOULD AGREE TO BUY ABOUT 45 MILLION OF THE SHARES ISSUED ADELPHIA SAID IT PLANS TO USE PROCEEDS TO REDEEM ITS 13 SENIOR SUBORDINATED NOTES DUE 1996 AND TO REDUCE BANK DEBT SALOMON BROTHERS INC WILL UNDERWRITE 9312230021 931223 CREDIT RATINGS CENTERIOR ENERGY UNITS RECEIVE DOWNGRADES ON DEBT PREFERRED INDEPENDENCE OHIO CENTERIOR ENERGY CORP'S CLEVELAND ELECTRIC ILLUMINATING CO AND TOLEDO EDISON CO UNITS RECEIVED LOWER CREDIT RATINGS FROM STANDARD & POOR'S CORP AND MOODY'S INVESTORS SERVICE INC THE UNITS HAVE ABOUT 65 BILLION OF DEBT AND PREFERRED STOCK OUTSTANDING MOODY'S CITED THE UTILITIES' HIGH COST OF POWER ONEROUS BALANCESHEET DEFERRALS IN RELATION TO EQUITY SIGNIFICANT RELIANCE ON INDUSTRIAL LOAD AND THE NEGATIVE IMPACT OF THESE FACTORS ON LEVERAGE AND THE COMPANY'S ABILITY TO OPERATE EFFECTIVELY IN AN INCREASINGLY COMPETITIVE ENVIRONMENT MOODY'S NOTED THAT CENTERIOR AN ELECTRICUTILITY HOLDING COMPANY HAS UNDERTAKEN PROGRAMS TO ADDRESS THE PROBLEMS INCLUDING WORKFORCE REDUCTIONS NONETHELESS THE COMPANY HAS A SIGNIFICANT TASK AHEAD TO REDUCE ITS COSTS TO COMPETITIVE LEVELS AND ATTAIN LONG TERM FINANCIAL VIABILITY THE RATING AGENCY SAID A SPOKESMAN FOR CENTERIOR SAID OF THE DOWNGRADES WE'RE NOT VERY HAPPY ABOUT IT CLEARLY THE ELECTRICUTILITY INDUSTRY IS FACING INCREASING SCRUTINY BECAUSE IT'S CHANGING SO DRAMATICALLY ON THE OTHER HAND THIS LOOKS A LITTLE DRASTIC MOODY'S MADE THE FOLLOWING DOWNGRADES FIRSTMORTGAGE BONDS SECURED MEDIUMTERM NOTES AND SECURED POLLUTIONCONTROL REVENUE BONDS TO BA2 FROM BAA3 UNSECURED POLLUTIONCONTROL REVENUE BONDS AND SECURED LEASE OBLIGATION BONDS TO BA3 FROM BA1 PREFERRED STOCK TO 'B1' FROM 'BA1' AND THE SHORTTERM RATING FOR COMMERCIAL PAPER TO NOT PRIME FROM PRIME3 S&P LOWERED SENIOR SECURED DEBT TO DOUBLEB FROM TRIPLEBMINUS SENIOR UNSECURED DEBT TO SINGLEBPLUS FROM DOUBLEBPLUS PREFERRED STOCK TO SINGLEB FROM DOUBLEBPLUS AND COMMERCIAL PAPER TO SINGLEB FROM SINGLEA3 9312230019 931223 CREDIT MARKETS PRICES OF US TREASURYS RISE SHARPLY BOLSTERED BY STRONG DEMAND AT AUCTION OF 5YEAR NOTES BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STRONG DEMAND AT THE GOVERNMENT'S AUCTION OF NEW FIVEYEAR NOTES SPARKED A SHARP RALLY IN THE TREASURY MARKET IN THE BOND MARKET'S VERSION OF LASTMINUTE CHRISTMAS SHOPPING THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY 1 1/4 POINT OR NEARLY 1250 FOR A BOND WITH A 1000 FACE VALUE TO 100 11/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO 621 FROM 631 ON TUESDAY THE PRICES OF OTHER MATURITIES ROSE SHARPLY AS WELL THE 10YEAR NOTE FOR EXAMPLE ROSE NEARLY 3/4 POINT TO 100 7/32 TO YIELD 570 COMPARED WITH 581 ON TUESDAY TRADERS SAID THE MARKET HAD BEEN LULLED INTO COMPLACENCY AHEAD OF THE HOLIDAYS MANY EXPECTED THE TREASURY DEPARTMENT'S 11 BILLION FIVEYEAR NOTE OFFERING TO BE A HUMDRUM AFFAIR DOMINATED BY DEALER BIDDING THROUGH THE MORNING THE MARKET TRADED AS THOUGH THAT WOULD BE THE CASE WITH PRICES DRIFTING ON VERY LIGHT ACTIVITY MOST IN THE MARKET HAD BEEN BETTING ON THE FIVEYEAR NOTES BEING AUCTIONED AT A YIELD OF UP TO 523 MANY INVESTORS HAVE BEEN ON THE SIDELINES FOR WEEKS AND WERE EXPECTED TO REMAIN THERE DURING YESTERDAY'S AUCTION BUT TRADERS PERHAPS DREAMING OF SUGAR PLUMS WERE ABRUPTLY AWAKENED BY LASTMINUTE DEMAND FOR THE FIVEYEAR NOTE THE TREASURY AWARDED THE FIVEYEAR NOTE AT A YIELD OF 519 WELL BELOW EXPECTATIONS THERE WAS SOME LATEDEVELOPING RETAIL INTEREST IN THE AUCTION SAID DANIEL CALLAHAN MANAGER OF GOVERNMENT SECURITIES TRADING AT PAINEWEBBER INC PEOPLE WHO HAD SOME CASH BUILDING UP WANTED TO SHOW SOME HOLDINGS ON THEIR BOOKS AT THE END OF THE YEAR HE EXPLAINED ACCORDING TO JAMES SOMERS A HEDGE FUND MANAGER IN RADNOR PA MUCH OF THE DEMAND FOR THE FIVEYEAR NOTES PROBABLY CAME FROM BANKS DESPITE PREDICTIONS OF A STRONGER ECONOMY IN THE FIRST QUARTER OF 1994 LOAN DEMAND CONTINUES TO BE SO WEAK THAT THE BANKS DIDN'T EVEN WAIT FOR THE TURN OF THE YEAR TO LOAD UP ON GOVERNMENT SECURITIES IN RECENT WEEKS BANKS HAVE BEEN BUYING FEWER GOVERNMENT SECURITIES AS THE ECONOMY APPEARED TO BE PICKING UP AND SPURRING STRONGER LOAN DEMAND BUT ACCORDING TO MR SOMERS THAT DEMAND HASN'T BEEN NEARLY AS STRONG AS PREVIOUSLY BELIEVED WHEN DEMAND FOR BUSINESS AND NONFINANCIAL COMMERCIAL LOANS IS WEAK AND THE GAP BETWEEN LONGTERM AND SHORTTERM INTEREST RATES IS WIDE BANKS FIND TREASURYS AN ATTRACTIVE ALTERNATIVE WE'RE STILL GOING THROUGH A LONGTERM LIQUIDATION OF DEBT BY AMERICA'S BUSINESSES SAYS MR SOMERS COMPANIES AREN'T AS INTERESTED IN TAKING ON NEW DEBT AND BUILDING MARKET SHARE AS THEY ARE IN PROFITS AND COSTCUTTING HE SAYS YESTERDAY BOND TRADERS HAD A DIFFERENT EXPLANATION FOR DEMAND FOR THE FIVEYEAR NOTES THEY SPECULATED THAT THE BIDDING FOR THE NOTES MAY HAVE BEEN CONCENTRATED AMONG TWO OR THREE BIG FIRMS SOME ADDED THAT THE AUCTION RESULTS HAD ELEMENTS OF WHAT IS CALLED A COUP WHERE PLAYERS BID BELOW THE MARKET IN AN ATTEMPT TO CORNER A PORTION OF AN AUCTION AND THEN PROFIT FROM THE ENSUING RALLY THEY STRESSED HOWEVER THAT NOTHING ILLEGAL APPEARED TO HAVE TAKEN PLACE UNDER THE TREASURY DEPARTMENT'S RULES NO FIRM CAN SUBMIT BIDS FOR MORE THAN 35 OF AN OFFERING WITH THE YIELD ON THE FIVEYEAR NOTES LOWER THAN EXPECTED PLAYERS WHO HAD BET ON BEING AWARDED SECURITIES FOUND THEMSELVES OWNING NOTHING THOSE PLAYERS HAD SET SHORT SALES POSITIONS IN WHICH THEY SOLD FIVEYEAR NOTES IN ANTICIPATION OF REPLACING THEM AT THE AUCTION THE MARKET WAS IN A NET SHORT POSITION SAID KEVIN FLANAGAN MONEY MARKET ECONOMIST AT DEAN WITTER REYNOLDS INC AS TRADERS SCRAMBLED TO CLOSE OUT THOSE POSITIONS IN A STILL ILLIQUID MARKET PRICES SURGED UPWARD IT WAS A GOOD OLDFASHIONED SHORTSQUEEZE SAID MR CALLAHAN OF PAINEWEBBER DETAILS OF THE AUCTION REFLECTED THE AGGRESSIVE BIDDING THE BIDTOCOVER RATIO A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS SUBMITTED WITH THOSE ACCEPTED CAME IN AT A VERY STRONG 322TO1 COMPARED WITH AN AVERAGE OF 271TO1 OVER THE LAST 12 FIVEYEAR NOTE AUCTIONS NONCOMPETITIVE BIDS WHICH TYPICALLY ARE PLACED FROM OUTSIDE THE WALL STREET DEALER COMMUNITY HOWEVER WERE SOFT AT 497 MILLION COMPARED WITH AN AVERAGE OF 612 MILLION OVER THE PAST 12 FIVEYEAR NOTE AUCTIONS FOLLOWING THE AUCTION RESULTS THE SHORTCOVERING RALLY TOOK THE YIELD ON THE WHENISSUED FIVEYEAR NOTE DOWN TO 512 FROM 521 IN WHENISSUED TRADING YESTERDAY THE TWOYEAR NOTE YIELDED 419 COMPARED WITH 425 ON TUESDAY THE RUSH TO COVER SHORT POSITIONS WAS EXAGGERATED BY TRADERS SEEKING TO AVOID CARRYING EXPOSURE INTO TODAY'S TRADING SESSION WITH TRADING SET TO END AT 2 PM EST VOLUME IN THE MARKET IS EXPECTED TO BE EVEN LOWER THAN IN RECENT DAYS THOSE WILLING TO BRAVE THE THIN MARKET CONDITIONS TODAY WILL HAVE TO WADE THROUGH A FULL SLATE OF ECONOMIC DATA MUCH OF WHICH IS EXPECTED TO BE BEARISH FOR BONDS MOST ATTENTION WILL BE ON THE NOVEMBER DURABLEGOODS ORDERS REPORT ANALYSTS ARE FORECASTING A GAIN OF ABOUT 20 FOR THE VOLATILE SERIES WHICH WOULD MARK THE FOURTH CONSECUTIVE MONTHLY RISE ALSO EXPECTED TODAY IS MIDDECEMBER AUTO SALES WEEKLY JOBLESS CLAIMS AND CONSUMERCONFIDENCE FIGURES ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED DEC 31 1993 AND MATURE DEC 31 1998 THE PRICES OF MANY CORPORATE BONDS ROSE MORE THAN ONE POINT FOLLOWING A RALLY IN TREASURYS JUST 300 MILLION OF NEW SECURITIES WAS SOLD IN THE CORPORATE MARKET YESTERDAY NORTHERN TRUST CORP SOLD 250 MILLION OF ONEYEAR BANK NOTES WHILE THE FEDERAL HOME LOAN BANK SYSTEM SOLD 50 MILLION OF DEBENTURES INVESTORS CONTINUE TO HAVE A LOT OF CASH TO PUT TO WORK TRADERS SAID NOTING THAT DURING THE WEEK OFFERS TO SELL PAPER HAVE BEEN SNAPPED UP QUICKLY AT THE OFFERED PRICE NYNEX CORP'S BONDS WHICH ARE THINLY TRADED DID NOT REACT NEGATIVELY TO A DOWNGRADE FROM MOODY'S INVESTORS SERVICE THE DEBT WAS DOWNGRADED TO SINGLEA3 FROM SINGLEA2 AS MANY MARKET PLAYERS HAD EXPECTED MOODY'S REACTED TO EXPECTATIONS THAT NYNEX WILL CONTINUE TO EXPAND ITS DIVERSIFIED ACTIVITIES WHICH HAVE A HIGHER RISK PROFILE AND ARE EXPECTED TO BE FUNDED WITH A SIGNFICANT DEBT COMPONENT A MOODY'S NEWS RELEASE SAID NORTHERN TRUST PRICED ITS BANK NOTES INITIALLY AT PAR TO YIELD 3625 RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY STANDARD & POOR'S THE NONCALLABLE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS MUNICIPAL BONDS FOLLOWED TREASURYS HIGHER YESTERDAY AND WERE GENERALLY 1/8 TO 3/8 POINT HIGHER AT THE CLOSE ALTHOUGH MUNIS DIDN'T GAIN AS MUCH AS US GOVERNMENT BONDS TRADERS SAID THE MOOD REMAINS VERY BULLISH WHILE THIS SESSION'S TAXEXEMPT BOND ADVANCE WAS ATTRIBUTED TO THE TREASURY BOND MARKET'S PERFORMANCE MUNIS REMAIN INDEPENDENTLY STRONG BECAUSE OF ONGOING BUYING THAT'S BEING DONE IN ANTICIPATION OF A SUPPLY SHORTAGE NEXT MONTH ON THE WAY IN JANUARY ARE HEAVY BOND CALLS AND REDEMPTIONS AS WELL AS AN EXPECTED ISSUANCE SLOWDOWN AT THE CLOSE THE MARTIN COUNTY NORTH CAROLINA INDUSTRIAL FACILITIES & POLLUTION CONTROL FINANCING AUTHORITY'S 565 BONDS DUE 2023 BONDS WERE 1/8 HIGHER AT 99 3/4 YIELDING 565 DEKALB COUNTY GEORGIA'S 525 BONDS DUE 2023 FINISHED 1/4 FIRMER AT 97 1/2 YIELDING 539 IN SLOW NEWISSUE ACTIVITY NASSAU COUNTY NEW YORK'S 120 MILLION TAX ANTICIPATION NOTES WERE SOLD THROUGH A CHEMICAL SECURITIES INC GROUP THE 50 MILLION SERIES A TANS WHICH ARE DUE MARCH 15 1994 ARE 250S PRICED TO YIELD 210 HOWEVER THE 70 MILLION SERIES B TANS ARE 300S PRICED TO YIELD 268 ON DEC 29 1994 THE YIELD INITIALLY 260 WAS RAISED AT A REPRICING 9312230018 931223 ABREAST OF THE MARKET STOCKS RISE ON SURGING BONDS SEVERAL ROUNDS OF BUY PROGRAMS BY CAITLIN MOLLISON AND TOM GRANAHAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK A WELLBID AUCTION OF FIVEYEAR TREASURY NOTES PUSHED BONDS SHARPLY HIGHER LIFTING STOCK PRICES IN THE PROCESS SEVERAL SMALL ROUNDS OF COMPUTERGUIDED BUY PROGRAMS IN THE AFTERNOON AND YEAREND PORTFOLIO ADJUSTMENTS AIDED THE ADVANCE TRADERS SAID EQUITY PRICES HAD SPENT THE MORNING MIXED AMONG BLUE CHIPS CHEVRON ROSE 1 3/8 TO 87 1/2 MOBIL ADDED 1 3/4 TO 77 5/8 AND UAL GAINED 4 1/4 TO 148 1/2 AS THE DOW JONES TRANSPORTATION AVERAGE SURGED 1458 POINTS BIG BOARD ADVANCERS LED DECLINERS 1151 TO 953 VOLUME REGISTERED 267068000 SHARES UP SLIGHTLY FROM 266580000 SHARES THAT CHANGED HANDS TUESDAY THE NASDAQ STOCK MARKET OVERCAME A MOSTLY WEAKER SESSION TO POST A SMALL GAIN THE NASDAQ COMPOSITE INDEX ROSE 044 POINT TO 75607 AFTER BEING BATTERED BY A PLUNGE IN ORACLE'S STOCK PRICE THE COMPANY WHICH TUMBLED 4 3/8 TO 31 1/4 HAD DISAPPOINTING REVENUE GROWTH THOUGH IT REPORTED IMPROVED FISCAL SECONDQUARTER EARNINGS LATE TUESDAY ORACLE WAS THE NASDAQ'S MOST ACTIVE ISSUE WITH VOLUME OF 159 MILLION SHARES COMPARED WITH AVERAGE DAILY TURNOVER OF JUST 29 MILLION SHARES THE STOCK AND BOND MARKETS WILL BE CLOSED TOMORROW FOR THE CHRISTMAS HOLIDAY BUT OTHER NASDAQ TECHNOLOGY LEADERS BLUNTED THE EFFECT OF ORACLE'S LOSS FOR INSTANCE SHARES OF INTEL SANTA CLARA CALIF GAINED 2 1/4 TO 61 3/4 ON NASDAQ AFTER PRUDENTIAL SECURITIES INC RAISED ITS RATING ON THE STOCK TO BUY FROM HOLD THE BROKERAGE FIRM ALSO RAISED ITS 1994 PERSHARE EARNINGS ESTIMATE TO 585 FROM 555 PRUDENTIAL SAID IT EXPECTS INVESTORS TO FOCUS ON SURGING PENTIUM MICROPROCESSOR SALES AND PAY LESS ATTENTION TO INTEL'S GROSS PROFIT MARGINS ADDING THAT THE SHARES SHOULD BENEFIT FROM AN EXPECTED INDUSTRYWIDE INCREASE IN ORDERS OVER THE NEXT ONE TO TWO QUARTERS AMERICAN DEPOSITARY RECEIPTS OF GRUPO TRIBASA JUMPED 1 7/8 OR 61 TO 32 5/8 THE COMPANY RECEIVED A CONCESSION TO BUILD A TOLL ROAD IN THE MEXICO CITY AREA AND OPERATE IT FOR A 25YEAR PERIOD THE ADRS OF YPF SOCIEDAD ANONIMA SLIPPED 7/8 TO 25 AFTER CS FIRST BOSTON LOWERED ITS 1994 OPERATING PROFIT ESTIMATE TO 160 A SHARE FROM 2 A SHARE THE REDUCTION WAS SAID TO HAVE BEEN MADE BECAUSE OF WEAK CRUDE OIL PRICES AND YPF'S HIGH EXPLORATION EXPENSES YPF WAS AMONG THE BIG BOARD'S MOST ACTIVE LIST WITH VOLUME OF 44 MILLION SHARES UP FROM AVERAGE DAILY VOLUME OF 13 MILLION SHARES AFTER REPORTING DISAPPOINTING THIRDQUARTER RESULTS SHARES OF SCIMED LIFE SYSTEMS DROPPED 3 1/8 TO 34 IN NASDAQ TRADING THE MARKETER AND DEVELOPER OF DISPOSABLE MEDICAL PRODUCTS POSTED NET INCOME OF 67 CENTS A SHARE FOR THE THIRD QUARTER COMPARED WITH 87 CENTS A SHARE A YEAR EARLIER DIRECTORS OF PARAMOUNT COMMUNICATIONS VOTED TO RECOMMEND SHAREHOLDERS ACCEPT QVC NETWORK'S 10 BILLION TENDER OFFER A PARAMOUNT ATTORNEY SAID AND AUTHORIZED THE COMPANY TO ENTER A MERGER AGREEMENT WITH QVC THE APPARENT AGREEMENT SENT RIVAL BIDDER VIACOM'S SHARES UP 1 1/8 TO 51 ON THE AMERICAN STOCK EXCHANGE WHILE SHARES OF NASDAQTRADED QVC SLIPPED 1 3/4 TO 40 1/4 BEFORE TRADING IN THE STOCK WAS HALTED PARAMOUNT'S STOCK FELL 5/8 TO 79 5/8 THE MERGER DEAL IS SAID TO CONTAIN NO INCENTIVES SUCH AS BREAKUP FEES OR LOCKUP OPTIONS BOTH VIACOM AND QVC MAY REVISE THEIR OFFERS ONCE THE TWO BEGIN SIMULTANEOUS TENDER OFFERS WHICH COULD OCCUR AS EARLY AS THIS WEEK SHARES OF BORDEN PLUNGED 1 7/8 OR 98 TO 17 1/4 IN ACTIVE TRADING AFTER THE COMPANY ANNOUNCED IT ISN'T ENGAGED IN ANY DISCUSSIONS CONCERNING THE SALE OR MERGER OF THE COMPANY IN A STATEMENT ISSUED AFTER A SPECIAL MEETING OF BORDEN'S BOARD THE PRODUCER AND DISTRIBUTOR OF CONSUMER FOOD PRODUCTS SAID IT'S NOT AWARE OF ANYONE SEEKING TO ENGAGE IN SUCH DISCUSSIONS SNAPPLE BEVERAGE VALLEY STREAM NY JUMPED 1 3/4 OR 75 TO 25 ON NASDAQ MORGAN STANLEY & CO INITIATED COVERAGE OF THE STOCK WITH A BUY RATING CONAGRA ALSO BENEFITED FROM POSITIVE ANALYST COMMENTS GAINING 1 1/4 TO 26 3/8 GOLDMAN SACHS & CO UPGRADED THE COMPANY TO A MODERATE OUTPERFORMER FROM MARKET PERFORMER LATE TUESDAY CONAGRA REPORTED SECONDQUARTER NET INCOME OF 56 CENTS A SHARE COMPARED WITH 52 CENTS A SHARE A YEAR EARLIER CML GROUP AN ACTON MASS RETAILER AND MAKER OF EXERCISE MACHINES FELL 2 TO 21 ON THE BIG BOARD CHAIRMAN CHARLES LEIGHTON SAID THE COMPANY KNOWS NO REASON FOR THE STOCK ACTIVITY HE SAID CML EXPECTS TO REPORT RECORD SALES AND EARNINGS FOR ITS FISCAL SECOND QUARTER ENDING JAN 30 REPRESENTING THE COMPANY'S 15TH CONSECUTIVE INCREASE IN QUARTERLY EARNINGS THE COMPANY ALSO BEGAN A 15 MILLION SHARE BUYBACK TUESDAY THE TREASURY'S LONG BOND SOARED NEARLY 1 1/4 POINTS FOLLOWING THE SUCCESSFUL AUCTION BUILDING ON WHAT WERE JUST MODERATE GAINS EARLY IN THE SESSION THE 30YEAR BOND'S YIELD FELL TO 621 ENDOFYEAR WINDOW DRESSING GAVE US A GOOD SHOVE HIGHER SAID JAMES ANDREWS FIRST VICE PRESIDENT IN CHARGE OF INSTITUTIONAL TRADING AT JANNEY MONTGOMERY SCOTT TODAY IS THE LAST DAY FOR MANY INSTITUTIONAL INVESTORS TO CONDUCT BUSINESS IN 1993 MR ANDREWS ADDED ANY TRANSACTIONS COMPLETED NEXT WEEK WILL FALL INTO 1994 AFTER ACCOUNTING FOR A FIVEDAY SETTLEMENT PERIOD BECAUSE MANY MARKET PLAYERS WILL BE OUT TODAY SOME FINISHED UP THEIR YEAR LATE YESTERDAY SCOTT MARSH HEAD OF EQUITY TRADING AT DEAN WITTER REYNOLDS SAID AGGRESSIVE BUYING TYPICALLY OCCURS IN THE LAST TWO WEEKS EVERY YEAR BECAUSE VOLUME IS EXPECTED TO BE LIGHT TODAY AND NEXT WEEK ANY BUYING IS LIKELY TO CAUSE STOCK PRICES TO BOUNCE 9312230017 931202 POWER PLANTS ELECTRIC UTILITIES STUDY AN OLD NEW SOURCE OF FUEL FIREWOOD FASTGROWING SUPER TREES' BURN CLEAN MAY OUTSTRIP SOLAR PANELS WINDMILLS FROM SPRIG TO 15 FEET IN A YEAR BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL CORNING NY SHADOWED BY THE HULKING 45YEAROLD COALBURNING POWER PLANT HE RUNS FOR NEW YORK STATE ELECTRIC & GAS CORP WILLIAM BUCKLEY WATCHES A BULLDOZER ARRANGE HIS 800TON HEAP OF AN ENVIRONMENTALLY CORRECT BUT LARGELY FORGOTTEN ALTERNATIVE FUEL IT'S WOOD IN THIS CASE THE REMNANTS OF OLD TELEPHONE POLES AND RAILROAD TIES BY GRINDING THEM INTO CHIPS AND MIXING THEM WITH HIS COAL MR BUCKLEY HAS CUT THE AGING PLANT'S EMISSIONS OF SULFUR WIDELY BLAMED FOR ACID RAIN IN HALF LOOK AT THAT NICE CLEAN SMOKESTACK HE SAYS POINTING UPWARD ELECTRICUTILITY OFFICIALS IN DROVES ARE REDISCOVERING WOOD AS AN IMPORTANT FUEL SOURCE BUT RISING DEMAND IS OUTSTRIPPING SUPPLIES FROM INDUSTRIAL AND SAWMILL WASTE MR BUCKLEY LAMENTS MORE DAYS THAN NOT WE CAN'T GET WOOD THE UTILITIES AREN'T ABOUT TO RISK THEIR OWN VERSION OF THE LUMBER INDUSTRY'S SPOTTEDOWL UPROAR BY CUTTING EXISTING FORESTS INSTEAD MANY ARE PLANNING TO GROW THEIR OWN MORE THAN EVEN THE NATIONAL ARBOR DAY FOUNDATION CAN INSPIRE THE STRATEGY IS TO COVER MILLIONS OF ACRES AROUND THE COUNTRY WITH FASTGROWING HYBRIDS OF VARIOUS SPECIES KNOWN COLLECTIVELY AS SUPER TREES SUCH SPECIALLY DEVELOPED TREES MAY BE DESTINED TO CAPTURE AS MUCH AS 15 OF THE NATION'S 60 BILLION ELECTRICPOWER FUEL MARKET WITHIN 20 YEARS ACCORDING TO JOHN FERRELL MANAGER OF THE DEPARTMENT OF ENERGY'S BURGEONING WOODRESEARCH EFFORT WOOD'S CURRENT MARKET SHARE IS 1 YET IT IS QUIETLY MOVING AHEAD OF COSTLY SOLAR PANELS AND WIND TURBINES AS THE LEADING RENEWABLE ENERGY ALTERNATIVE TO AIRFOULING FOSSIL FUELS AND SCARY NUCLEAR PLANTS WOOD ISN'T SEXY BUT IT'S THE RENEWABLE RESOURCE THAT YOU CAN STOCKPILE IT'S THERE WHEN THE SUN DOESN'T SHINE AND THE WIND ISN'T BLOWING MR FERRELL SAYS IN A VALLEY OF CABBAGES AND CORNFIELDS 30 MILES NORTH OF MR BUCKLEY'S PLANT NEW YORK STATE ELECTRIC IS COFUNDING AN EXPERIMENTAL 100ACRE PLANTATION OF SCRUB WILLOWS NURTURED BY EDWIN WHITE DEAN OF FORESTRY RESEARCH AT THE STATE UNIVERSITY OF NEW YORK AT SYRACUSE THE FIRST OF THESE WILLOWS HAVE GROWN FROM 10INCH SPRIGS TO 15FOOT TREES IN THE LAST YEAR MORE THAN A FOOT A MONTH OR THREE TIMES THE GROWTH RATE OF THEIR WILD KIN SAYS DR WHITE THIS ISN'T ANOTHER FLAKY PIEINTHESKY ENERGY FANTASY IN FACT WOOD POWER IS ALREADY CREDIBLE ENOUGH TO HAVE SPARKED HEAVY INVESTMENT BY UTILITIES INDEPENDENT POWER PRODUCERS AND SELFSUFFICIENT MANUFACTURERS WHO SEE IT AS A WAY TO CUT EMISSIONS OF GREENHOUSE GASES SOONER RATHER THAN LATER THEY HAVE SPENT 10 BILLION ON WOODBURNING PLANTS IN THE US SINCE 1980 ROUGHLY 40 MORE THAN THE COMBINED TOTAL FOR SOLAR AND WIND FACILITIES THE RESULT SOME 1050 WOODBURNING PLANTS ARE UP AND RUNNING ALTHOUGH MOST ARE ONLY LARGE ENOUGH TO POWER A NEARBY FACTORY OR OFFICE BUILDING THEIR COMBINED OUTPUT IS THE EQUIVALENT OF THREE LARGE NUCLEAR REACTORS ACCORDING TO THE ENERGY DEPARTMENT ONE POTENTIAL PROBLEM WITH BURNING WOOD IS ITS IMAGE AS A PRODUCER OF BLACK SMOKE BUT ALL SMOKE ISN'T CREATED EQUAL ENVIRONMENTALISTS SAY AND NEW TECHNOLOGIES ARE CLEANING UP WOOD'S ACT BURNING WOOD GOT A BAD RAP A FEW YEARS AGO WITH THE GROWTH OF RESIDENTIAL WOOD STOVES AND FIREPLACES WHICH LACK THE TECHNOLOGY THAT COMMERCIAL WOOD PLANTS NOW HAVE THESE PLANTS USE A VARIETY OF HIGHTEMPERATURE BURNING TECHNIQUES SPECIAL BOILERS THAT CONCENTRATE THE HEAT BY CONTROLLING OXYGEN AND FUEL ALONG WITH CATALYTIC CONVERTERS TO CLEAN GASES AND ELECTROSTATIC SYSTEMS THAT NAB MOST REMAINING PARTICULATES THERE IS STILL SMOKE BUT IT IS GRAYISHWHITE AND MAINLY WATER VAPOR ACCORDING TO UTILITIES RESEARCHERS WHAT'S MORE THE FASTGROWING TREES ARE RELATIVELY CLEANBURNING TO BEGIN WITH COMPARED WITH WOOD SCRAP THAT MAY CONTAIN PAINT CHEMICALS OR METALS FURTHER SUPERTREE VARIETIES SUCH AS POPLARS WILLOWS AND MAPLES ARE HARDWOODS WHICH BURN CLEANER THAN CONIFERS POWER PLANTS THAT RUN ON WOOD OFTEN BRING RAVES FROM VETERAN OPERATORS WASHINGTON WATER POWER CO'S 46MEGAWATT PLANT IN KETTLE FALLS WASH WHICH MAKES ENOUGH JUICE FOR 50000 HOMES WORKS LIKE A JEWEL SAYS GEORGE PERKS THE UTILITY'S SUPERINTENDENT OF THERMAL OPERATIONS HE SAYS THE PLANT BUILT IN 1983 IS FUN TO OPERATE THERE'S NO SULFURIC ACID IN THE FLUE GAS SO IT'S EASIER ON THE BOILER TUBES THAN COAL THAT REDUCES MAINTENANCE AND IT'S A GOOD CLEAN PLACE TO WORK WOOD IS ON A ROLL JUST AS SOLAR AND WINDPOWER TECHNOLOGIES ARE FACING OBSTACLES THE PROMISE OF SOLAR POWER FROM PHOTOVOLTAIC CELLS IS STALLED BY THE PERSISTENTLY HIGH PURCHASE AND MAINTENANCE COSTS OF SOLAR PANELS ELECTRICITY GENERATED BY BURNING WOOD CURRENTLY COSTS ABOUT A THIRD AS MUCH AS SOLAR POWER ONE OF SOLAR'S BIGGEST BELIEVERS MOBIL CORP IS TRYING TO SELL OFF ITS RESEARCH DATA AND EQUIPMENT AFTER INVESTING SOME 100 MILLION OVER 19 YEARS A SPOKESMAN SAYS MOBIL CAN'T SEE UTILITIES MAKING LARGESCALE USE OF SOLAR ENERGY FOR SOME YEARS MEANWHILE SEEMINGLY BENIGN WIND POWER FACES A SURPRISING ENVIRONMENTAL BACKLASH CRITICS SAY THE NEW 150FOOT WIND TURBINES KILL BIRDS RUIN SCENIC VIEWS AND MAKE TOO MUCH NOISE THEY'RE SO UGLY LIKE SALVADOR DALI'S WORST NIGHTMARE SAYS CLIFFORD GROSS A KENNEWICK WASH CITY COUNCILMAN WHO IS FIGHTING A PROPOSAL TO ERECT WINDMILLS NEAR HIS TOWN WIND ADVOCATES SAY THEY CAN FIX THE PROBLEMS BUT WOOD IS WINNING ACCEPTANCE AND INVESTMENT FROM UNLIKELY SOURCES WESTINGHOUSE ELECTRIC CORP ONCE THE NATION'S LARGEST BUILDER OF NUCLEARPOWER PLANTS IS IN NEGOTIATIONS TO BUILD AN ELECTRIC PLANT THAT WOULD USE NEW TECHNIQUES TO GASIFY WOOD AND WRING MORE POWER FROM IT THAN CURRENT STEAM BOILERS CAN FRANK BEVC A WESTINGHOUSE MANAGER SAYS IN THE FUTURE WE'RE AS LIKELY TO BE A HIGHTECH WOOD COMPANY AS A NUCLEARPLANT BUILDER IN FACT REPLACING MORIBUND US NUCLEARPOWER PLANTS OFFERS THE LIVELIEST POTENTIAL APPLICATION FOR WOODBURNING TECHNOLOGY PLAGUED BY ECONOMIC PROBLEMS STEMMING FROM HIGH MAINTENANCE COSTS 15 NUCLEAR PLANTS WITH SUPPOSED 40YEAR LIFE CYCLES HAVE CLOSED AFTER AN AVERAGE OF A DOZEN YEARS ENERGY DEPARTMENT OFFICIALS SAY PRIVATELY THAT 25 OF REMAINING ONES MAY BE RETIRED IN THE NEXT DECADE WOOD PUMMELED BY THE RISE OF COAL AND LATER OIL WAS SUPPOSEDLY BURIED AS A MAJOR FUEL BY ALARMS ABOUT DENUDED FORESTS IN THE 1960S THE APPARENT EULOGY CAME IN 1980 WHEN RONALD REAGAN ASSERTED THAT TREES EMIT AIR POLLUTION ACTUALLY SCIENTISTS SAY THE NET EFFECT OF TREE GROWTH IS TO REMOVE CARBON DIOXIDE THE NO 1 SUSPECT IN GLOBALWARMING THEORIES FROM THE ATMOSPHERE IN FACT CONCERNS ABOUT THE ATMOSPHERE ARE STOKING THE COMEBACK OF WOOD ENVIRONMENTALISTS SAY THAT WHILE BURNING WOOD EMITS SOME CARBON IT IS LESS THAN COAL GIVES OFF BESIDES THE OXYGENPRODUCING GROWTH VIRTUES OF THE SUPER TREES WILL MORE THAN OFFSET THE POLLUTION CAUSED BY BURNING THEM ACCORDING TO THE ENERGY DEPARTMENT WHOSE ANNUAL SPENDING TO RESEARCH WOOD PLANTING AND HIGHTECH BURNING METHODS HAS MORE THAN TRIPLED TO 50 MILLION SINCE 1990 NOW PRESIDENT CLINTON HAS COME FULL CIRCLE FROM MR REAGAN TO OFFICIALLY HUG TREES AS A COMMERCIAL ENERGY SOURCE IN HIS RECENTLY UNVEILED CLIMATE ACTION ENERGY PLAN IT PROMISES HEFTY INCREASES IN SUPERTREE RESEARCH SPENDING YET THE REEMERGENCE OF WOOD HAS GENERALLY KEPT A LOW PROFILE OFTEN HIDDEN WITHIN THE TRENDY CATCHALL TERM BIOMASS IN UTILITYCOMPANY PRESS RELEASES UNIVERSITY RESEARCH BUDGETS AND GOVERNMENT ENERGY STATISTICS ENERGY DEPARTMENT OFFICIALS SAY 88 OF ALL BIOMASS BEING BURNED TODAY IS SIMPLY WOOD ALTHOUGH MORE ATTENTION HAS FOCUSED ON OTHER BURNABLE MATERIALS INCLUDING LANDFILL GARBAGE AND FARM CROPS SUCH AS CORN SAYS DR WHITE PLAIN OLD WOOD JUST DOESN'T SOUND NOVEL OR SCIENTIFIC ENOUGH TO USE IN A RESEARCH PAPER OR IN A FUNDING REQUEST SOME UTILITIES OFFICIALS WOULD JUST AS SOON THEIR INTEREST IN WOOD POWER BE KEPT QUIET BURNING WOOD HAS CONNOTATIONS OF CLEARCUTTING STATELY OLD FORESTS SAYS JANE TURNBULL A PROJECT MANAGER AT THE ELECTRIC POWER RESEARCH INSTITUTE A NONPROFIT GROUP IN PALO ALTO CALIF FUNDED BY 700 US UTILITIES WHEN WE TALK WOOD IT'S AGRICULTURE NOT FORESTRY A NEW ERA OF WOOD POWER COULD PRODUCE AN ALTERNATIVE CASH CROP FOR FARMERS UTILITIES OFFICIALS FORECAST THAT INCREASED USE OF FUEL WOOD FOR ELECTRICITY AND COGENERATED HEAT WILL QUADRUPLE WOODRELATED JOBS INCLUDING GROWING HARVESTING AND HAULING TO 250000 BY THE YEAR 2010 SOME FARMERS ARE ALREADY BETTING ON WOOD MY WIFE THOUGHT I HAD GONE A LITTLE CRAZY BUT I BELIEVE SOMEONE WILL BUY THEM BESIDES THEY'RE KIND OF PRETTY SAYS HERB GRUNDMAN WHOSE 1800 ACRES OF ALFALFA WHEAT AND SOYBEANS NEAR OSAKIS MINN NOW ADJOINS HIS 80 ACRES OF CLONED POPLARS THE ONEINCH SEEDLINGS HE PLANTED TWO YEARS AGO ARE STURDY 10FOOTERS TWENTYFIVE OTHER MINNESOTA FARMERS HAVE JOINED AN AGRICULTURE DEPARTMENT AND UTILITIESFUNDED PROGRAM TO PLANT A TOTAL OF 1000 ACRES OF HYBRID POPLARS NEXT SPRING ALTHOUGH NEITHER THEY NOR MR GRUNDMAN HAVE BUYERS YET PROSPECTS ARE STRONG SEVERAL UTILITIES IN MINNESOTA ARE HELPING FINANCE RESEARCH TO DESIGN AN ELECTRIC PLANT THEY HOPE WILL EFFICIENTLY BURN LOGS OF UP TO SIX FEET IN LENGTH ELIMINATING THE COSTLY STEP OF GRINDING WOOD INTO CHIPS THIS DECEPTIVELY SIMPLE ADVANCE MAY FURTHER PROMOTE WOOD USE AMONG COALBURNING UTILITIES LONG RESIGNED TO PULVERIZING THEIR FUEL CHUNK BY CHUNK THE MOVE TOWARD SUPERTREE PLANTATIONS HAS AROUSED THE CONCERN OF THE NATIONAL AUDUBON SOCIETY IT ESTIMATES THAT TO REPLACE SAY HALF OF THE NATION'S NUCLEARPOWER CAPACITY WHICH STILL HAS A 217 SHARE OF THE OVERALL ELECTRICITY MARKET WOULD REQUIRE THE PLANTING OF 40 MILLION ACRES OF TREES THAT WOULD EQUAL 12 OF THE TOTAL US LAND NOW BEING FARMED JAN BEYEA THE GROUP'S CHIEF SCIENTIST SAYS THIS CAN BE A BIG ADVANCE TOWARD CLEANING UP AIR POLLUTION BUT IT WILL BE HARD TO TRANSFORM SUCH A BIG PART OF THE AMERICAN LANDSCAPE EVEN WITH TREES AND NOT STEP ON SOME ENVIRONMENTAL TOES HE CAUTIONS THAT CLOSE SUPERVISION BY FORESTERS OF COMMERCIAL TREE PLANTATIONS IS NEEDED TO ENSURE THAT THEY DON'T UPSET NATURAL DIVERSITY BY TAKING OVER GRASSLANDS AND OTHER ECOSYSTEMS DR BEYEA A PHYSICIST SAYS TOO MANY SQUARE PLOTS STRAIGHT ROWS THAT DON'T LOOK NATURAL AND ACRE AFTER ACRE OF THE SAME TYPE OF TREE WILL CAUSE A PUBLIC BACKLASH SUCH CONCERNS ARE LITTLE MORE THAN LANDSCAPING CHALLENGES THE SUPERTREE ADVOCATES CONTEND THEY NOTE THAT FORESTRY RESEARCHERS IN VARIOUS REGIONS HAVE DEVELOPED NATIVE HYBRIDS INCLUDING SPECIAL EUCALYPTUSES IN FLORIDA MESQUITES IN TEXAS SYCAMORES IN TENNESSEE SILVER MAPLES IN ILLINOIS POPLARS IN WASHINGTON AND DR WHITE'S WILLOWS IN NEW YORK THESE AREN'T UNATTRACTIVE ANY MORE THAN A FIR THAT'S PLANTED TO BECOME A CHRISTMAS TREE SAYS REINHARD STETTLER PROFESSOR OF FOREST GENETICS AT THE UNIVERSITY OF WASHINGTON OF COURSE THEY AREN'T MAJESTIC EVEN THAT COULD CHANGE SAYS TOBY BRADSHAW A MOLECULAR GENETICIST WHO WORKS WITH DR STETTLER WE'RE IN A FAIRLY PRIMITIVE STAGE OF RESEARCH SIMILAR TO THE FIRST HUMANS WHO CROSSED TWO KINDS OF FIELD GRASS TO DOMESTICATE WHEAT HE SAYS WE COULD BE ONE DAY AWAY FROM 200FOOT POPLARS AT LEAST AS IMPORTANT AS HEIGHT IS THE CAPACITY TO GROW DENSELY DR WHITE'S WILLOWS THRIVE EVEN THOUGH CRAMMED A FOOT OR SO FROM EACH OTHER WILD WILLOWS USUALLY DON'T GROW CLOSER TOGETHER THAN SIX FEET APART MANY OF THE WOODFUEL HYBRID VARIETIES CAN BE HARVESTED ANNUALLY WITHOUT REPLANTING CUT BACK TO THEIR STUMPS THE TREES REGENERATE ON THEIR OWN SAYS DR WHITE WE'RE ABLE TO GROW NINE TONS AN ACRE NOW TEN YEARS AGO IT WAS FIVE AND MOTHER NATURE CAN ONLY DO ONE THE LIKELIHOOD OF ADDITIONAL WOOD SUPPLIES HAS NEW YORK STATE ELECTRIC OFFICIALS THINKING OF WHAT WOULD HAVE BEEN UNTHINKABLE A FEW YEARS AGO CONVERTING SOME OF THEIR SIX COAL PLANTS ENTIRELY TO WOOD INSTEAD OF WRITING A CHECK TO THE COAL MINES IN PENNSYLVANIA IT WOULD BE NICE TO DO BUSINESS WITH FARMERS RIGHT HERE IN NEW YORK AND GIVE A BOOST TO OUR LOCAL ECONOMY SAYS THOMAS O'MEARA A PLANNING MANAGER HOW DID FUEL WOOD GAIN ITS NEWFOUND CACHET FIRST IT HAD TO GO TO THE BACK OF THE LINE AMONG ENERGY SOURCES ALTHOUGH WOOD FIRES WERE AMONG THE EARLIEST ARTIFACTS OF CIVILIZATION SUPPLIERS OF WOOD REMAINED LOCAL INDEPENDENTS AND NEVER DEVELOPED AS AN ORGANIZED INDUSTRY NO BIG WOOD EMERGED IN THE LATER MODE OF KING COAL AND BIG OIL AS THE SETTLEMENT OF THE US MOVED WEST FORESTS WERE STRIPPED FOR LUMBER COAL AND THE SUBSEQUENT DEVELOPMENTS OF HOUSETOHOUSE GAS PIPELINES RELEGATED WOOD TO A PRIMORDIAL PLACE IN THE US ENERGY SCENE BY 1900 WOOD'S ONCEDOMINANT SHARE OF THE NATION'S FUEL MARKET HAD FALLEN TO 20 POOR OLD WOOD WAS PUSHED BACK TO REMOTE AREAS AND WAS HISTORY BY THE TIME THE BIG ELECTRIC UTILITIES STARTED FORMING SAYS RALPH OVEREND PRINCIPAL SCIENTIST AT THE DOE'S NATIONAL RENEWABLE ENERGY LABORATORY THE ARAB OIL EMBARGO OF 1973 SPURRED NEW RESEARCH INTO RENEWABLE FUEL SOURCES BUT AT FIRST WOOD WAS TREATED WITH CONDESCENSION BY MANY UTILITIES OFFICIALS NEW YORK STATE ELECTRIC'S MR O'MEARA ADMITS HE SCOFFED AT FUELWOOD RESEARCH UNTIL A FERVENT FORESTER GAVE HIM A HYBRID POPLAR TWIG TO PLANT AT HOME HE SAYS THE THING GREW TO THE ROOFTOP IN ONE YEAR AND HERE WE ARE WITH BIG FURNACES TO FIRE I THOUGHT WELL WHY NOT WOOD SEE RELATED LETTER LETTERS TO THE EDITOR NUCLEAR PLANT GROUNDS IT'S A JUNGLE OUT THERE WSJ DEC 23 1993 9312020060 YY93 MM12 9312230016 931223 MARTIN MARIETTA TO BUY GENERAL DYNAMICS UNIT PRICE TAG IS 2085 MILLION SPACE DIVISION BRINGS NEW LAUNCH CAPABILITY BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL MARTIN MARIETTA CORP MAKER OF THE TITAN FAMILY OF SPACE LAUNCH VEHICLES SAID IT AGREED TO BUY GENERAL DYNAMICS CORP'S SPACE SYSTEMS DIVISION FOR 2085 MILLION NEWS OF THE SALE NEGOTIATIONS SURFACED MORE THAN TWO MONTHS AGO SO THE ANNOUNCEMENT WASN'T A SURPRISE ANALYSTS SAID THE SALE PRICE WAS AT THE LOWER END OF EXPECTATIONS BUT THEY SAID THE TRANSACTION WAS A POSITIVE STRATEGIC STEP FOR BOTH COMPANIES THE PURCHASE DOESN'T INCLUDE CERTAIN GENERAL DYNAMICS ASSETS INCLUDING A 40ACRE FACILITY IN SAN DIEGO MARTIN MARIETTA BASED IN BETHESDA MD ESPECIALLY WANTED TO AVOID ANY POTENTIAL ENVIRONMENTAL LIABILITIES AT THE SAN DIEGO SITE HOME OF THE SPACE SYSTEMS DIVISION THE TRANSACTION SHOWS THE RADICALLY DIVERGENT PATHS THE TWO BIG AEROSPACE AND DEFENSE CONCERNS HAVE TAKEN IN COPING WITH THE SHARP DROP IN US AND GLOBAL MILITARY SPENDING IN RECENT YEARS MARTIN MARIETTA HAS BEEN AGGRESSIVELY PURSUING ACQUISITIONS WHILE GENERAL DYNAMICS HAS BEEN SHRINKING THE PURCHASE ADDS A LIGHTERLIFT CAPABILITY TO MARTIN MARIETTA'S TITAN LINE IT OPENS UP A WHOLE NEW SEGMENT OF THE MARKET TO US SAID NORMAN AUGUSTINE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OUR TWO PRODUCTS DON'T COMPETE HEADTOHEAD AFTER THE ACQUISITION MARTIN MARIETTA WILL BE A PLAYER IN 80 OF THE COMPETITIVE WORLDWIDE LAUNCH MARKET HE SAID THE SPACE SYSTEMS DIVISION WHICH BUILDS THE ATLAS AND CENTAUR LAUNCH VEHICLES POSTED 1992 REVENUE OF ABOUT 500 MILLION THE DIVISION HAS A PROUD HISTORY HAVING LAUNCHED JOHN GLENN THE FIRST AMERICAN TO ORBIT THE EARTH INTO SPACE IN 1962 THE DIVISION WAS EMBARRASSED BY FAILED MISSIONS IN 1991 1992 AND AGAIN LAST MARCH A NEW VERSION OF THE ATLAS ROCKET LAST WEEK SUCCESSFULLY LAUNCHED A MARTIN MARIETTABUILT SATELLITE PHILIP FRIEDMAN AN ANALYST AT MORGAN STANLEY CO CALLED THE TRANSACTION A WINWIN DEAL FOR BOTH COMPANIES GENERAL DYNAMICS RETAINED MORE ASSETS THAN HE EXPECTED WHICH HELPED REDUCE THE PRICE FROM THE EXPECTED RANGE OF 275 MILLION TO 300 MILLION GENERAL DYNAMICS SAID THE SAN DIEGO FACILITY HAD A BOOK VALUE OF 50 MILLION MR FRIEDMAN AND OTHER ANALYSTS WERE HEARTENED WHEN GENERAL DYNAMICS CHIEF EXECUTIVE OFFICER JAMES R MELLOR SAID THAT THE SPACE SYSTEMS DIVISION WOULD TURN THE CORNER TO PROFITABILITY IN 1994 MARTIN MARIETTA'S MR AUGUSTINE AGREED SAYING HE EXPECTED THE ACQUISITION TO ADD TO PERSHARE EARNINGS GENERAL DYNAMICS IS BASED IN FALLS CHURCH VA IN ADDITION TO THE USUAL GOVERNMENT REVIEWS MARTIN MARIETTA SAID THE SALE IS CONDITIONED UPON MARTIN MARIETTA RECEIVING CERTAIN ASSURANCES REGARDING FINANCIAL REGULATORY AND POLICY MATTERS THE GOVERNMENT MUST ALLOW THE COMPANY TO REALIZE THE FINANCIAL BENEFITS OF ITS INVESTMENT MR AUGUSTINE SAID THAT WILL INVOLVE CERTAIN ACCOUNTING CONCESSIONS ANALYSTS SAID THE COMPANIES HOPE THE TRANSACTION CAN BE COMPLETED BY APRIL 30 MR AUGUSTINE SAID HE COULDN'T DISCUSS THE IMPACT OF THE TRANSACTION ON EMPLOYMENT OR SPECIFIC FACILITY LOCATIONS JOBS WILL BE CUT ALONG WITH THE DEFENSE BUDGET AND TO BOLSTER EFFICIENCY HE SAID ADDING THAT THE COMBINATION OF THE TWO COMPANIES' SPACE OPERATIONS WILL PRESERVE MORE JOBS IN THE LONG TERM THE GENERAL DYNAMICS DIVISION HAS 3700 EMPLOYEES TRADING IN SHARES OF MARTIN MARIETTA AND GENERAL DYNAMICS WAS HALTED LATE YESTERDAY FOR THE ANNOUNCEMENT BEFORE THE HALT GENERAL DYNAMICS ROSE 4125 TO 97 WHILE MARTIN MARIETTA ROSE 50 CENTS TO 4475 BOTH IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TRADING DIDN'T RESUME AFTER THE ANNOUNCEMENT 9312230015 931223 WORLD MARKETS LONDON GAINS AS RATECUT WISHES SPUR BOURSES IN EUROPE FRANKFURT SCORES THIRD RECORD HIGH A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARES CLIMBED HELPED BY CONTINUED OPTIMISM ABOUT A FURTHER CUT IN INTEREST RATES AN ELEMENT THAT POWERED SEVERAL EUROPEAN BOURSES THE FRANKFURT MARKET SCORED ITS THIRD CONSECUTIVE RECORD HIGH ON UNEXPECTEDLY STRONG TRADE DATA TOKYO STOCKS ROSE MODERATELY WEDNESDAY FOR THEIR FIRST GAIN IN THREE SESSIONS IN ANTICIPATION OF A POSSIBLE JAPANESE GOVERNMENT ANNOUNCEMENT ON THE ECONOMY THOUGH SENTIMENT REMAINED SOUR TAIPEI STOCKS SOARED 44 TO A 2 1/2YEAR HIGH ON POSSIBLE TAIWAN GOVERNMENT MOVES FAVORABLE TO SECURITIES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11102 UP 087 REFLECTING HIGHER MARKETS IN ALL REGIONS HOME CONSTRUCTION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14186 UP 373 OR 27 WITH SUN HUNG KAI PROPERTIES OF HONG KONG POSTING A 7 GAIN IN ITS LOCAL CURRENCY SOFTWARE STOCKS TRAILED AT 11569 DOWN 270 OR 23 WITH ORACLE SYSTEMS OF THE US SLIDING 12 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 133 POINTS TO 33557 THE FT 30STOCK INDEX ROSE 50 POINTS TO 25137 VOLUME WAS 7792 MILLION SHARES COMPARED WITH 7561 MILLION SHARES A DAY EARLIER PRICES INITIALLY FELL EXTENDING THE PREVIOUS DAY'S DECLINE AND HIT A LOW OF 33331 ON THE FT 100 BUT BUYERS QUICKLY LEAPED IN AND PUSHED THE INDEX TO A PEAK OF 33591 PRICES THEN DRIFTED LOWER BEFORE FINALLY GOING BACK UP INVESTORS ONCE AGAIN PINNED THEIR HOPES ON A REDUCTION IN BRITAIN'S BASE LENDING RATE EARLY NEXT MONTH TO OFFSET POTENTIAL DAMAGE TO CONSUMER CONFIDENCE FROM TAX INCREASES WHILE THE ECONOMY IS FEELING SCARCELY ANY INFLATIONARY PRESSURE RATECUT HOPES BOOSTED THE BUILDING MATERIALS AND BANKING SECTORS WHILE BREWERS AND FOOD RETAILERS FELL ON PROFITTAKING FOLLOWING THEIR RECENT GAINS OVERALL STOCK PRICES ALSO WERE HEAVILY INFLUENCED BY MOVEMENTS IN STOCKINDEX FUTURES IN FRANKFURT THE DAX 30STOCK INDEX CLIMBED 1458 POINTS TO A NEW HIGH OF 219751 BOOSTING THIS WEEK'S GAIN TO 4649 POINTS AND THIS YEAR'S RISE TO 42 GERMAN TRADE DATA FOR OCTOBER WHICH SHOWED SURPLUS THAT WAS LARGER THAN EXPECTED GAVE A SHARP BOOST TO CYCLICAL SHARES SUCH AS STEELMAKERS AND INDUSTRIAL CONCERNS IN ADDITION GERMAN INSTITUTIONAL INVESTORS CONTINUED TO BUILD UP EQUITY WEIGHTINGS IN THEIR PORTFOLIOS WITH DEFENSIVE ISSUES SUCH AS UTILITY STOCKS IN PARIS STOCKS LOGGED SOLID GAINS IN ACTIVE TRADING THAT TO SOME EXTENT REFLECTED YEAREND WINDOW DRESSING IN WHICH MONEY MANAGERS BUY STOCKS THAT HAVE PERFORMED WELL TO SPRUCE UP THEIR PORTFOLIOS PARIS PRICES WERE HELPED BY INTERESTRATE CUTS BY THE BELGIAN DANISH AND DUTCH CENTRAL BANKS SPURRING SPECULATION FRANCE WOULD FOLLOW SUIT TODAY THE PARIS MARKET PAID LITTLE ATTENTION TO TWO DISAPPOINTING ECONOMIC REPORTS ON FRENCH HOUSEHOLD CONSUMPTION AND HOUSING STARTS IN AMSTERDAM EQUITIES ROSE TO RECORD TERRITORY MAINLY ON BUYING BY FOREIGN INVESTORS AS MOST DOMESTIC PARTICIPANTS HAVE ALREADY CLOSED THEIR BOOKS FOR THE YEAR IN MILAN STOCKS ROSE BROADLY ON EXPECTATIONS OF IMMINENT PASSAGE OF ITALY'S 1994 BUDGET AND ON GROWING HOPES FOR AN INTERESTRATE REDUCTION WITH BOTH FACTORS CONTRIBUTING TO ALREADY BULLISH MARKET SENTIMENT IN MADRID SHARES CONTINUED TO SURGE AMID STRONG VOLUME BOLSTERED BY TALK OF COMING SPANISH INTERESTRATE CUTS THOUGH SOME PROFITTAKING PULLED PRICES DOWN FROM HIGHS THE MARKET WASN'T IMPRESSED BY SIGNS THAT RECESSION IS SLOWING WITH THIRDQUARTER SHRINKAGE IN GROSS DOMESTIC PRODUCT NARROWING FROM THE TWO PREVIOUS PERIODS IN ZURICH STOCKS ROSE STRONGLY IN ACTIVE DEALINGS AS BUYING WAS ENCOURAGED IN ALL SECTORS BY A STRONG SWISS FRANC WHICH COULD CONTRIBUTE TO LOWER LENDING RATES NEXT MONTH IN MEXICO CITY SHARES CLIMBED 1 TO SET THEIR SECOND RECORD HIGH THIS WEEK ON THE THIRD DAILY DROP IN A ROW IN INTEREST RATES THE RATE ON MEXICO'S BELLWETHER TREASURY BILL FELL TO ITS LOWEST LEVEL IN MORE THAN A YEAR AND EVEN MORE BULLISH THE INTERBANK RATE DROPPED THE ACTIONS WERE VIEWED AS A POSITIVE INDICATOR FOR MEXICO'S 1994 ECONOMIC GROWTH STOCKS HAD PULLED BACK A DAY EARLIER ON PROFITTAKING IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 8881 POINTS TUESDAY FOR A TWODAY DROP OF 4 ROSE 13031 TO 1744574 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 280 MILLION SHARES UP FROM 220 MILLION SHARES A DAY EARLIER ADVANCING ISSUES OUTNUMBERED RETREATING ISSUES 587396 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH EASED 152 POINTS TUESDAY GAINED 464 TO 145037 INVESTORS WERE ENCOURAGED BY A FURTHER RETREAT BY THE JAPANESE YEN IN FOREIGNEXCHANGE DEALINGS AND BY BUYING TO COVER SHORT OR OVERSOLD POSITIONS AHEAD OF A JAPANESE HOLIDAY THURSDAY THAT WILL CLOSE THE STOCK MARKET BUT PERSISTENT WORRIES ABOUT JAPAN'S ECONOMIC PROBLEMS AND POLITICAL REFORM KEPT PARTICIPANTS SHY PRIME MINISTER MORIHIRO HOSOKAWA COULD HOLD A NEWS CONFERENCE FRIDAY TO DISCUSS PROSPECTS FOR POLITICALREFORM BILLS AND GOVERNMENT OFFICIALS SAID HE ALSO IS LIKELY TO OUTLINE PLANS TO STIMULATE THE ECONOMY THE MARKET MOSTLY IGNORED DEREGULATORY STEPS UNVEILED EARLIER BY THE FINANCE MINISTRY THAT AIM TO BOLSTER SENTIMENT IN JAPAN'S STOCK MARKET CORPORATE FINANCING AND INVESTMENT IN HONG KONG SHARES RALLIED 17 IN MODERATE TRADING AFTER CORRECTING THE PREVIOUS DAY AFTER A BULL RUN PRICES FELL INITIALLY BUT LOCAL BUYERS CONTINUED TO POUR INTO THE MARKET THOUGH TURNOVER SHRANK AS MOST OVERSEAS FUND MANAGERS SQUARED THEIR POSITIONS AHEAD OF THE CHRISTMAS HOLIDAY AND JAPANESE INVESTORS CONTINUED TO TAKE PROFITS PROPERTY STOCKS WERE THE BIGGEST GAINERS PROPELLING THE SECTOR UP 25 IN TAIPEI PRICES JUMPED 44 TO THEIR HIGHEST LEVEL SINCE JULY 5 1991 IN HECTIC TRADING INVESTOR CONFIDENCE WAS BOOSTED BY NEWS REPORTS THAT THE TAIWAN GOVERNMENT MAY SCALE DOWN OR DEFER ITS PLAN TO REIMPOSE A CAPITALGAINS TAX ON SECURITIES THE FINANCE MINISTRY SAID IT WOULD CONSIDER SUGGESTIONS BY LEGISLATORS WHO HAVE DEMANDED DEFERMENT OF THE CAPITALGAINS TAX AND FURTHER CUTS IN THE STOCKTRANSACTION TAX IN MANILA STOCKS ADVANCED 22 TO A RECORD HIGH FOR THE FIFTH STRAIGHT DAY IN SEOUL PRICES GAINED MODERATELY FOLLOWING WILD SWINGS ON RENEWED SPECULATION THAT THE SOUTH KOREAN STOCK STABILIZATION FUND MAY SELL PART OF ITS SHAREHOLDINGS TO CURB TOOHEFTY GAINS IN SOME ISSUES IN SYDNEY WORRIES ABOUT CORPORATE PERFORMANCE SENT STOCKS DOWN AND IN SINGAPORE SHARES CLOSED MIXED WITH LATE SELLING KNOCKING PRICES DOWN FROM INTRADAY HIGHS 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 9312230014 931223 INTERNATIONAL BRIEF HEINEKEN NV PURCHASE PLANNED OF 523 OF A SWISS BREWERY CONCERN DUTCH BREWER HEINEKEN NV SAID IT WILL BUY 523 OF BRAUEREI HALDENGUT OF WINTERTHUR SWITZERLAND THE COMPANY THAT CONTROLS THE COUNTRY'S SECOND LARGEST BREWER CALANDA HALDENGUT AG HEINEKEN HAS AGREED TO BUY THE SHARES FROM FAMILY SHAREHOLDERS AND WINTERTHUR SWISS INSURANCE CO THE PLANNED PURCHASE PRICE WASN'T DISCLOSED THE REMAINING 477 OF BRAUEREI HALDENGUT SHARES ARE LISTED ON THE STOCK EXCHANGE IN ZURICH A SPOKESWOMAN FOR HEINEKEN SAID THE TRANSACTION IS EXPECTED TO BE COMPLETED IN THE FIRST QUARTER OF 1994 HEINEKEN ALREADY HAS A STAKE OF 10 IN CALANDA HALDENGUT WHICH HAS A MARKET SHARE OF 125 OF SWITZERLAND'S DOMESTIC BEER MARKET EMPLOYING 690 PEOPLE THE SWISS BREWER HAS ANNUAL SALES OF ABOUT 243 MILLION SWISS FRANCS 1675 MILLION 9312230013 931223 INTERNATIONAL SWEDISH IMPORT PRICES STOCKHOLM SWEDISH IMPORT PRICES FELL 05 IN NOVEMBER FROM OCTOBER REVERSING THE RISING TREND EVIDENT SINCE JULY ACCORDING TO FIGURES RELEASED YESTERDAY BY SCB THE NATIONAL STATISTICS AGENCY THE MONTHLY FIGURES BROUGHT THE 12MONTH INCREASE IN IMPORT PRICES TO 151 SINCE NOVEMBER 1992 MOST OF THE INCREASE REFLECTS THE DEPRECIATION OF THE SWEDISH KRONA SINCE IT WAS FLOATED IN NOVEMBER LAST YEAR 9312230012 931223 SMALL STOCK FOCUS STOCKS POST SLIGHT LOSSES IN QUIET SESSION AS INVESTORS APPEAR READY FOR HOLIDAY BY MICHAEL SANTOLI SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS POSTED SLIGHT LOSSES IN A SUBDUED SESSION UNABLE TO DRAW STRENGTH FROM A BONDMARKET RALLY AND A LATE SURGE IN LARGECAPITALIZATION STOCKS INVESTORS APPEARED TO BE COASTING INTO THE HOLIDAY WEEKEND ACTING ONLY IN RESPONSE TO SPECIFIC CORPORATE NEWS TRADERS SAID THE RUSSELL 2000 INDEX OF SMALLCOMPANY STOCKS TRADED OVER THE COUNTER AND ON MAJOR EXCHANGES SPENT THE DAY ON NEGATIVE GROUND BUT NEVER FELL AS MUCH AS 1 POINT THE INDEX CLOSED AT 25022 DOWN 011 POINTS THE NASDAQ STOCK MARKET COMPOSITE INDEX GAINED 044 OR 01 TO CLOSE AT 75607 A BUYING SPREE IN THE BOND MARKET SPARKED AN AFTERNOON SURGE IN BLUE CHIP STOCKS BUT SMALLCAP ISSUES WERE LEFT BEHIND THE TREASURY'S LONG BOND JUMPED NEARLY 1 1/4 POINTS KNOCKING ITS YIELD DOWN TO ABOUT 621 THE DOW JONES INDUSTRIAL AVERAGE CLOSED 1704 POINTS OR 045 HIGHER THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 101 OR 04 TO FINISH AT 25815 TRADERS EXPECT INTEREST IN THE MARKET TO WANE FURTHER TODAY MARKETS ARE CLOSED TOMORROW SHOE CARNIVAL DROPPED 2 1/4 TO 11 3/4 AFTER THE EVANSVILLE IND RETAILER SAID PROFORMA FOURTHQUARTER EARNINGS WOULD BE LOWER THAN LAST YEAR'S 15 CENTS A SHARE PROTEON PLUNGED 1 1/2 TO 5 ON VERY HEAVY VOLUME THE WESTBOROUGH MASS COMPANY SAID IT EXPECTS A PERSHARE LOSS OF 55 CENTS TO 75 CENTS A SHARE IN THE FOURTH QUARTER COMPARED WITH NET INCOME OF TWO CENTS A SHARE A YEAR AGO SUMITOMO BANK CALIFORNIA FELL 3 1/2 TO 27 1/2 AFTER ANNOUNCING IT EXPECTS A NET LOSS FOR THE FOURTH QUARTER FROM INCREASED LOANLOSS RESERVES THE COMPANY ALSO SAID IT WILL CUT ITS QUARTERLY DIVIDEND IN HALF TO 20 CENTS A SHARE ON THE UPSIDE SHARPER IMAGE SURGED AFTER THE SAN FRANCISCO COMPANY SAID 1993 EARNINGS WOULD BE 200 TO 300 HIGHER THAN LAST YEAR WHEN THE COMPANY EARNED FOUR CENTS A SHARE THE SHARES CLOSED UP 1 3/8 AT 5 1/8 OWENS & MINOR INCREASED 1 3/8 TO FINISH AT 20 1/2 AFTER ANNOUNCING IT WOULD MERGE WITH STUART MEDICAL INC A HOLDING COMPANY OWNED BY OWENS & MINOR OF RICHMOND VA WILL EXCHANGE 402 MILLION IN CASH AND 115 MILLION PAR VALUE IN PREFERRED STOCK FOR STUART MEDICAL ABSOLUTE ENTERTAINMENT SLUMPED 1 5/8 OR 317 TO 3 1/2 CITING PRODUCTDEVELOPMENT DELAYS THE UPPER SADDLE RIVER NJ COMPANY SAID IT EXPECTS TO POST A LOSS IN THE FOURTH QUARTER AND FOR THE FULL YEAR NET INCOME IN THE YEARAGO FOURTH QUARTER WAS 22 CENTS A SHARE WASHINGTON BANCORP OF HOBOKEN NJ SLIPPED 2 1/2 TO CLOSE AT 11 1/4 THE COMPANY SAID UNION CITY NJBASED HUBCO WHICH HAS AGREED TO ACQUIRE THE BANK IS EXAMINING THE POSSIBILITY THAT ONE OF WASHINGTON'S NONPERFORMING LOANS MAY LOSE SOME OF ITS VALUE THE LOAN FINANCED A BUILDING WHOSE TENANT THE INTERNAL REVENUE SERVICE MAY CURTAIL OPERATIONS THERE KOPIN SLID 3 3/4 TO 14 3/4 ON AN ANALYST'S DOWNGRADE HANCOCK INSTITUTIONAL EQUITY SERVICES' HERBERT MAHER LOWERED HIS RECOMMENDATION ON THE COMPANY TO HOLD FROM BUY SAYING HE EXPECTS A FOURTHQUARTER LOSS OF EIGHT CENTS TO 10 CENTS A SHARE JUST TOYS ROSE 1 5/8 TO 6 3/8 ON AN UPGRADE BY A KIDDER PEABODY & CO ANALYST CALIFORNIA MICRO DEVICES INCREASED 1 5/8 TO 12 1/2 THE MILPITAS CALIF COMPANY SAID HITACHI KINZOKU LTD WILL DISTRIBUTE ITS ELECTRICAL COMPONENTS IN JAPAN COMPUTER DATA SYSTEMS JUMPED 2 TO 15 3/4 THE DEPARTMENT OF EDUCATION AWARDED THE ROCKVILLE MD COMPANY A BASE CONTRACT VALUED AT 91 MILLION AND THE COMPANY SAID SUBSEQUENT AGREEMENTS COULD BE WORTH AS MUCH AS 376 MILLION ST PETERSBURG FLABASED JABIL CIRCUIT CLIMBED 1 1/2 TO 7 1/2 THE COMPANY TUESDAY ANNOUNCED FIRSTQUARTER EARNINGS OF SIX CENTS A SHARE COMPARED WITH 18 CENTS A SHARE ON FEWER SHARES A YEAR AGO JABIL SAID GROSS MARGINS IMPROVED SLIGHTLY FROM THE PRECEDING FOURTH QUARTER ST MARY LAND & EXPLORATION LOST 2 3/4 TO CLOSE AT 11 1/4 ON EXTREMELY HEAVY VOLUME ON THE NASDAQ STOCK MARKET DECLINING ISSUES OUTNUMBERED ADVANCERS 1547 TO 1398 TOTAL NASDAQ VOLUME WAS 301664000 SHARES COMPARED WITH TUESDAY'S TOTAL OF 291204000 VOLUME ON THE NASDAQ NATIONAL MARKET WAS 253419400 AGAINST 243504700 TUESDAY 9312230011 931223 INTERNATIONAL SWEDISH RETAIL SALES DROP 28 STOCKHOLM SWEDISH RETAIL SALES DROPPED 28 IN OCTOBER COMPARED WITH THE SAME MONTH A YEAR EARLIER SCB THE NATIONAL STATISTICS AGENCY SAID THE DECLINE WHICH FOLLOWED A 1 DROP THE MONTH EARLIER WAS ATTRIBUTED TO A SHARP DROP IN DURABLE GOODS SALES SAID SCB SALES OF DURABLE GOODS DROPPED 6 IN THE MONTH AFTER A 37 DECLINE THE MONTH EARLIER HARDEST HIT WERE CLOTHING SALES WHICH DECLINED 125 IN THE MONTH 9312230010 931223 INTERNATIONAL BRITISHIRISH PEACE PLAN FORCES IRA TO MAKE TOUGH STRATEGIC DECISIONS BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL THE WORLD'S MOST SOPHISTICATED UNDERGROUND ARMY IS IN A FIX THE PEACE PLAN SIGNED BY THE PRIME MINISTERS OF BRITAIN AND IRELAND LAST WEEK OFFERS NO GUARANTEE OF FULFILLING EITHER GOAL OF THE IRISH REPUBLICAN ARMY BRITISH WITHDRAWAL FROM NORTHERN IRELAND OR UNIFICATION WITH THE IRISH REPUBLIC YET THE DESIRE FOR PEACE IN NORTHERN IRELAND IS SO GREAT THAT OFFICIALS OF THE OUTLAWED GROUP HAVEN'T YET REJECTED THE PLAN AND MAY CONCLUDE THAT THEY CAN'T BECAUSE DOING SO WOULD ALIENATE TOO MUCH OF THEIR THINNING BASE OF SUPPORT INDEED ONE POLL SHOWS THAT 97 OF VOTERS IN THE IRISH REPUBLIC TRADITIONALLY THE IRA'S LARGEST POOL OF SUPPORT BELIEVE IT SHOULD ACCEPT THE PLAN'S CALL FOR A CEASEFIRE OBSERVERS SAY THAT IRA OFFICIALS THEMSELVES ARE DEEPLY DIVIDED ON THE PLAN WHICH OFFERS SOMETHING THEY HAVEN'T HAD SINCE 1972 A SEAT AT THE BARGAINING TABLE IN LONDON AVAILABLE ONCE THEY'VE HALTED ALL VIOLENCE FOR THREE MONTHS LITTLE WONDER THAT THE IRA'S ACTIONS THIS PAST WEEK HAVE SEEMED CONTRADICTORY WHILE ITS OFFICIALS HAVE PUBLICLY TALKED ABOUT DISCUSSING PEACE ITS FOOT SOLDIERS HAVE CONTINUED PLANTING BOMBS THE REPUBLICAN MOVEMENT IS DIVIDED AND FACING A DILEMMA SAYS JOHN ALDERDICE A BELFAST PSYCHIATRIST WHO IS LEADER OF THE NEUTRAL ALLIANCE PARTY WHICH BOASTS A PROPORTIONATE MIX OF CATHOLIC AND PROTESTANT MEMBERS IT FINDS ITSELF CENTER STAGE FOR THE FIRST TIME IN YEARS HAVING TO MAKE A VERY BIG DECISION WITH THE WHOLE OF THE WORLD CALLING ON IT TO MAKE PEACE AND ENTER INTO DEMOCRATIC POLITICS FOR THE MOMENT THE IRA'S STRATEGY APPEARS TO BE TO DELAY REPLYING TO THE BRITISHIRISH PEACE PLAN IT SAYS IT MAY OFFICIALLY RESPOND NEXT MONTH WHILE DEMANDING ADDITIONAL CONCESSIONS IN RECENT DAYS FOR INSTANCE GERRY ADAMS LEADER OF THE IRA'S POLITICAL WING SINN FEIN HAS INSISTED THAT ANY PEACE PLAN INCLUDE THE RELEASE OF THE NEARLY 700 IRA MEMBERS IN JAIL HE ALSO HAS ASKED THAT BRITAIN AGREE TO ACTIVELY COURT VOTER APPROVAL IN NORTHERN IRELAND FOR THE CONCEPT OF A UNITED IRELAND SO FAR BRITAIN HAS MERELY AGREED TO ABIDE BY THE WISHES OF A MAJORITY OF VOTERS IN NORTHERN IRELAND 60 OF WHOM ARE PROTESTANT AND NOT LIKELY TO SUPPORT UNIFICATION WITH THE SOUTH BY STOPPING SHORT OF REJECTING THE PLAN AND IN THE MEANTIME MAKING DEMANDS THE IRA IS TRYING TO PUT THE BRITISH GOVERNMENT IN THE POSITION OF SAYING NO AND APPEARING INTRANSIGENT SO FAR THE STRATEGY DOESN'T SEEM TO BE WORKING IN BELFAST YESTERDAY FOR A SURPRISE VISIT BRITISH PRIME MINISTER JOHN MAJOR REITERATED HIS POSITION THAT THE PEACE PLAN IS NONNEGOTIABLE FAR FROM APPEARING INTRANSIGENT HE IS VIEWED AS APPROPRIATELY TOUGH HIS DUBLIN COUNTERPART ALBERT REYNOLDS HAS TAKEN THE SAME POSITION WITH ONE EXCEPTION HE HAS SAID THAT ONCE AN IRA CEASEFIRE IS WELLESTABLISHED DISCUSSIONS COULD BEGIN ON THE EARLY RELEASE OF PRISONERS ALTHOUGH SINN FEIN OFFICIALS HAVE TRIED USING THE PRISONER ISSUE TO DRIVE A WEDGE BETWEEN DUBLIN AND LONDON THE TWO GOVERNMENTS HAVE SCRAMBLED TO STAND UNITED AND THE IMAGE OF THE IRA IS INCREASINGLY THAT OF AN ISOLATED GROUP FOR IRA OFFICIALS IT DOESN'T HELP THAT THE IRISH GOVERNMENT AGREED IN THE PEACE PLAN TO RESPECT THE WISHES OF A MAJORITY OF VOTERS IN NORTHERN IRELAND THAT AGREEMENT ESSENTIALLY CONTRADICTS THE IRISH CONSTITUTION WHICH CLAIMS A RIGHT TO NORTHERN IRELAND IRRESPECTIVE OF THE WISHES OF A MAJORITY OF VOTERS THERE AND IT REVERSES THE POSITION OF IRISH OFFICIALS WHO LIKE IRA OFFICIALS HAVE ARGUED THAT UNIFICATION SHOULD BE VOTED ON BY RESIDENTS OF THE ISLAND AS A WHOLE WHICH IS MAINLY CATHOLIC RATHER THAN BY NORTHERN IRELAND VOTERS BUT IT ISN'T MERELY THE IRISH GOVERNMENT WHOSE SUPPORT FOR UNIFICATION HOLY GRAIL OF THE IRA IS WANING POLLS IN THE IRISH REPUBLIC SHOW THAT AN OVERWHELMING MAJORITY OF VOTERS THERE SUPPORT UNIFICATIONAS LONG AS IT DOESN'T USHER IN HIGHER TAXES WHICH IT WOULD IN THAT EVENT AN OVERWHELMING MAJORITY OF VOTERS DON'T SUPPORT IT UNIFICATION HAS A CONSIDERABLE FOLLOWING WHEN ONE TALKS ABOUT IT IN ROMANTIC TERMS BUT WHEN YOU GET TO THE HARD REALITIES MOST PEOPLE NORTH AND SOUTH SAY NOT TODAY THANK YOU VERY MUCH' SAYS DR ALDERDICE EVEN IN NORTHERN IRELAND POLLS SHOW THAT AS MANY AS 30 OF CATHOLICS VIEW UNIFICATION AS A LESS ATTRACTIVE OPTION THAN A REGIONAL GOVERNMENT WITHIN THE UNITED KINGDOM THAT WOULD HAVE CONSTITUTIONAL PROTECTIONS FOR MINORITIES AFTER ALL IN A PROVINCE WITH NEARLY 20 UNEMPLOYMENT A SWITCH FROM BRITISH TO IRISH SOVEREIGNTY WOULD BRING IN AN INSTANT AND DRAMATIC REDUCTION IN UNEMPLOYMENT PAY AND OTHER BENEFITS BECAUSE SOCIAL SERVICES IN THE IRISH REPUBLIC ARE CONSIDERABLY LESS GENEROUS THAN IN BRITAIN WITH MODERATE PARTIES ON BOTH SIDES AGREEING THAT NORTHERN IRELAND VOTERS SHOULD CONTROL THEIR OWN DESTINY AND WITH DECADES TO GO BEFORE VOTING CATHOLICS REPRESENT A MAJORITY THERE AND NO GUARANTEE THEY'LL EVER SEEK UNIFICATION AFTER THAT LEADERS ON BOTH SIDES ARE ENDORSING THE PEACE PLAN AS A WAY FOR NORTHERN IRELAND ITSELF TO ATTAIN A SENSE OF UNITY IT'S NOT A QUESTION OF UNIFICATION WITH IRELAND BUT OF TWO COMMUNITIES AGREEING TO LIVE TOGETHER SAYS MEMBER OF PARLIAMENT JOSEPH HENDRON OF BELFAST WHO BELONGS TO THE CATHOLIC ALBEIT ANTIIRA SOCIAL DEMOCRATIC LABOR PARTY NOT SURPRISINGLY THE GENERAL SECRETARY OF THE MAINSTREAM PROTESTANT PARTY AGREES THERE'S NOT GOING TO BE A UNITED IRELAND IN MY LIFETIME OR THE LIFETIME OF MY CHILDREN OR GRANDCHILDREN SAYS JIM WILSON OF THE ULSTER UNIONIST PARTY WHICH SUPPORTS THE PEACE PROPOSAL SO WE'VE GOT TO LEARN TO LIVE TOGETHER THE TWO MEN DISAGREE ON WHICH WAY THE IRA WILL TURN RIGHT NOW THEY'RE EXPLOITING THE ATTENTION LETTING THE WHOLE WORLD WONDER WHETHER THEY'RE GOING TO STOP OR NOT BUT BY NEXT MONTH I EXPECT THEM TO CALL A TOTAL CESSATION OF VIOLENCE SAYS MR HENDRON MR WILSON WHOSE OFFICE WAS DAMAGED BY AN IRA BOMB EARLIER THIS YEAR SAYS THE PROSPECTS FOR AN IRA CEASEFIRE LOOK QUITE BLEAK 9312230009 931223 WINTERTHUR UAP JOINT VENTURE WINTERTHUR SWITZERLAND WINTERTHUR SWISS INSURANCE CO A MAJOR INSURER ANNOUNCED THAT IT AND FRANCE'S UNION DES ASSURANCES DE PARIS UAP WILL ESTABLISH A CREDIT INSURANCE COMPANY IN FRANCE THEY WILL COMBINE THEIR FRENCH CREDIT INSURANCE OPERATIONS IN THE JOINT VENTURE UAP WILL ALSO CONTRIBUTE CAPITAL AND MAKE AVAILABLE ITS DISTRIBUTION CHANNELS THE ANNOUNCEMENT SAID THE VENTURE WILL ENABLE UAP TO GREATLY EXPAND ITS SMALL VOLUME IN THIS SECTOR WHILE WINTERTHUR GAINS ACCESS TO UAP'S DISTRIBUTION NETWORK WINTERTHUR HOLDS A 3 INTEREST IN UAP THE COOPERATION IS PART OF A WHOLE SERIES OF MEASURES BY WINTERTHUR TO INCREASE ITS FOCUS ON SPECIFIC MARKET SEGMENTS IN FRANCE THE ANNOUNCEMENT SAID 9312230008 931223 FINANCING BUSINESS J&L SPECIALTY STEEL INC J&L SPECIALTY STEEL INC PITTSBURGH SAID THE UNDERWRITERS FOR ITS OFFERING OF 156 MILLION COMMON SHARES EXERCISED THEIR OPTION TO PURCHASE AN ADDITIONAL 234 MILLION COMMON SHARES AT 14 A SHARE TO COVER OVERALLOTMENTS THE COMPANY SAID IT WILL SPLIT PROCEEDS FROM THE SALE OF THE SHARES EQUALLY WITH USINOR SACILOR'S UGINE SA UNIT THE FORMER SOLE STOCKHOLDER OF J&L THE COMPANY SAID THE OFFERING IS BEING COMANAGED IN THE US BY MERRILL LYNCH & CO CREDIT LYONNAIS SECURITIES USA INC AND JP MORGAN SECURITIES INC AND INTERNATIONALLY BY CREDIT LYONNAIS SECURITIES MERRILL LYNCH INTERNATIONAL LTD AND UBS LTD 9312230007 931223 TECHNOLOGY & MEDICINE AT&T TO WORK WITH CALIFORNIA GROUPS ON SERVICES FOR LOWINCOME POPULATION BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO AGREED TO WORK WITH CONSUMER GROUPS IN CALIFORNIA TO ENSURE THAT THE STATE'S LARGE LOWINCOME POPULATION ISN'T LEFT BEHIND IN THE CURRENT RUSH TOWARD NEW TELECOMMUNICATIONS SERVICES AT&T'S AGREEMENT TO WORK CLOSELY WITH A DOZEN GROUPS ALSO REMOVES A MAJOR CHALLENGE TO ITS PROPOSED 126 BILLION ACQUISITION OF MCCAW CELLULAR COMMUNICATIONS INC THE NATION'S LARGEST CELLULAR SERVICES OPERATOR SO FAR AT&T HAS RECEIVED REGULATORY APPROVAL FROM EVERY STATE EXCEPT CALIFORNIA THE AGREEMENT WILL PUT PRESSURE ON CALIFORNIA'S PUBLIC UTILITIES COMMISSION TO BLESS THE MERGER SAID JOHN GAMBOA EXECUTIVE DIRECTOR OF LATINO ISSUES FORUM ONE OF THE GROUPS AT&T'S ANNOUNCEMENT FOLLOWS A WIDELY PUBLICIZED SPEECH TUESDAY BY VICE PRESIDENT GORE THAT STRESSED THAT NEW SERVICES INCLUDING PICTURE TELEPHONES AND TWOWAY TELEVISION SHOULD BE AVAILABLE TO VIRTUALLY EVERYONE JUST AS BASIC TELEPHONE SERVICE IS NOW THE TIMING OF THE VICE PRESIDENT'S SPEECH JUST BEFORE AT&T'S ANNOUNCEMENT WAS A HAPPY COINCIDENCE FOR US AND IS A SPRINGBOARD FOR THE PLAN SAID JAMES E BARDEN A VICE PRESIDENT FOR AT&T'S WESTERN REGION THE AGREEMENT BETWEEN AT&T MCCAW AND THE DOZEN CALIFORNIA GROUPS CALLS FOR PLANS TO SHOW HOW NEW SERVICES INCLUDING WIRELESS INTERACTIVE TELEVISION AND MULTIMEDIA SERVICES WOULD BE MADE AVAILABLE TO MINORITY LOWINCOME INNERCITY AND DISABLED GROUPS IN THE STATE ABOUT A THIRD OF CALIFORNIA'S 31 MILLIONSTRONG POPULATION EARNS LESS THAN 30000 A YEAR THE AGREEMENT ESSENTIALLY GIVES THE GROUPS A SEAT AT AT&T'S PLANNING TABLE IN THE COMPANY'S EFFORT TO SELL THE NEW SERVICES IN CALIFORNIA MR BARDEN SAID ONE OF THEIR CONCERNS WAS HOW CAN AT&T EDUCATE THE LOWINCOME POPULATION ABOUT THE NEW SERVICES MR BARDEN SAID THE CONSUMER GROUPS HAD OPPOSED THE AT&TMCCAW DEAL ARGUING THAT LOWINCOME GROUPS WERE TYPICALLY NOT TARGETED AS CUSTOMERS FOR THE NEW SERVICES MR GAMBOA OF THE LATINO ISSUES FORUM SAID AT&T COULD EVENTUALLY INVEST BILLIONS IN BRINGING THE NEW SERVICES TO LOWINCOME COMMUNITIES IN CALIFORNIA HE ALSO EXPECTS FEDERAL REGULATORS TO NOW REQUIRE SIMILAR ARRANGEMENTS IN OTHER PARTS OF THE COUNTRY BEFORE APPROVING LARGE TELECOMMUNICATIONS VENTURES OR ALLIANCES AT&T OFFICIALS SAID THERE'S NO PLAN TO DISCOUNT THE PRICE OF SERVICES TO POOR NEIGHBORHOODS BUT THEY STRESSED THAT THE COMPANY WILL MAKE CERTAIN NEW TECHNOLOGIES ARE AVAILABLE TO ALL CUSTOMERS AND THAT THE SERVICES WILL BE OF VALUE TO RESIDENTS AND SMALL BUSINESSES IN MINORITY AND LOWINCOME COMMUNITIES 9312230006 931223 WHO'S NEWS WHITTAKER CORP WHITTAKER CORP LOS ANGELES JACK L HANCOCK WAS ELECTED A DIRECTOR OF THIS AEROSPACE CONCERN INCREASING THE BOARD'S SIZE TO EIGHT MEMBERS MR HANCOCK 63 YEARS OLD RECENTLY RETIRED AS EXECUTIVE VICE PRESIDENT MARKETING AND SALES OF PACIFIC BELL 9312230005 931223 WHO'S NEWS GUARDSMAN PRODUCTS INC GUARDSMAN PRODUCTS INC GRAND RAPIDS MICH PAUL K GASTON 59 YEARS OLD WAS NAMED CHAIRMAN OF THIS MAKER OF INDUSTRIAL COATINGS EFFECTIVE JAN 1 MR GASTON PREVIOUSLY WAS A PARTNER IN THE GRAND RAPIDS LAW FIRM OF WARNER NORCROSS & JUDD MR GASTON WILL SUCCEED KEITH C VANDER HYDE 65 WHO WILL RETIRE ON DEC 31 BUT REMAIN AS A CONSULTANT TO THE COMPANY UNTIL THE END OF NEXT YEAR MR VANDER HYDE ALSO HAS BEEN NAMED CHAIRMAN EMERITUS AND WILL REMAIN AS A DIRECTOR 9312230004 931223 SOUTHWEST AIR TO MERGE SLOWLY SALT LAKE CITY MORRIS AIR WILL CONTINUE TO OPERATE ITS CURRENT SCHEDULE UNDER ITS OWN NAME FOR AT LEAST A FEW YEARS AFTER SOUTHWEST AIRLINES CO COMPLETES ITS PROPOSED ACQUISITION OF MORRIS AIR MORRIS AIR SAID SOUTHWEST AIR PLANS TO SLOWLY MERGE INTO MORRIS'S SYSTEM FOR TWO TO THREE YEARS AFTER THE TRANSACTION IS COMPLETED WHICH SHOULD BE ON DEC 31 AS REPORTED LAST WEEK SOUTHWEST AIR REACHED AN AGREEMENT TO ACQUIRE ALL THE STOCK OUTSTANDING OF MORRIS AIR IN EXCHANGE FOR 3574658 SOUTHWEST AIR COMMON SHARES MORRIS AIR IS A PRIVATELY HELD CARRIER BASED IN SALT LAKE CITY 9312230003 931223 MAKAHA CHANGES ITS NAME NEW YORK MAKAHA INC SAID IT WILL CHANGE ITS NAME TO TERRACOM INC EFFECTIVE TOMORROW IN A NEWS RELEASE THE COMPANY SAID THE THE NEW NAME MORE ACCURATELY REFLECTS ITS FOCUS ON HIGHTECHNOLOGY COMMUNICATIONS INCLUDING BUSINESS AND ENTERTAINMENT SOFTWARE INTERACTIVE MEDIA AND WIRELESS DATA AND VOICE TRANSMISSION 9312230002 931223 BUSINESS BRIEF BARRY'S JEWELERS INC RETAIL CHAIN RECAPITALIZES SENIOR DEBT OF 87 MILLION BARRY'S JEWELERS INC SAID IT RECAPITALIZED 87 MILLION OF SENIOR DEBT HELD BY WELLS FARGO BANK AND FUNDS MANAGED BY FIDELITY MANAGEMENT & RESEARCH CO IN EXCHANGE FOR COMMON STOCK SECURED NOTES AND CASH WELLS FARGO WHICH HELD ABOUT 76 OF THE COMPANY'S OLD DEBT AND THE FIDELITY FUNDS WHICH HELD ABOUT 24 RECEIVED 9706096 SHARES OF COMMON STOCK IN EXCHANGE FOR 15 MILLION OF DEBT CONVERSION THEY ALSO RECEIVED 70 MILLION IN 11 SENIOR SECURED NOTES DUE 2000 FOR A LIKE AMOUNT OF DEBT CONVERSION THE BALANCE OF THE DEBT WAS PAID IN CASH THE JEWELRY RETAILER BASED IN MONROVIA CALIF ALSO SIGNED A THREEYEAR REVOLVING CREDIT AGREEMENT FOR AS MUCH AS 35 MILLION WITH FIRST NATIONAL BANK OF BOSTON TERRY BURMAN PRESIDENT AND CHIEF EXECUTIVE SAID THE RECAPITALIZATION WILL HELP THE COMPANY IMPROVE ITS EXISTING STORES AND PURSUE A PLANNED EXPANSION THE CHAIN HAS 145 STORES IN 13 STATES 9312230094 931130 IS THE EC A FREE TRADER JUST ASK BULGARIA BY JONATHAN EYAL WHILE THE EUROPEAN COMMUNITY LIKES TO PORTRAY ITSELF AS A CHAMPION OF FREE TRADE IT HAS OFFERED THE FEEBLE ECONOMIES OF EASTERN EUROPE ONLY KIND WORDS AND STIFF TRADE TARIFFS NOTHING ILLUSTRATES THIS BETTER THAN THE CALLOUS DISREGARD WITH WHICH BULGARIA IS NOW TREATED FOR ALMOST A YEAR THE COUNTRY THAT HAS DONE SO MUCH TO SAFEGUARD BALKAN STABILITY IS STILL UNABLE TO CONCLUDE AN ASSOCIATION AGREEMENT WITH THE EUROPEAN COMMUNITY BULGARIA STANDS AS PROOF THAT STABILITY IN THE BALKANS EVEN ON THE EDGES OF A CRUEL WAR IS POSSIBLE BULGARIA STARTED ITS POSTCOMMUNIST LIFE WITH A GOVERNMENT DOMINATED BY COMMUNISTS FEIGNING DEMOCRACY EXACTLY LIKE NEIGHBORING ROMANIA AND ALBANIA AT THE TIME YET JUST AS THE PEOPLE OF YUGOSLAVIA WERE SLIDING INTO WAR BULGARIA'S DEMOCRATIC FORCES UNITED AND MANAGED TO WIN POWER IN LATE 1991 BULGARIAN PRIME MINISTER PHILIP DIMITROV AND PRESIDENT ZHELYU ZHELEV WERE DULY TREATED TO A MYRIAD OF IRRELEVANT PHOTO OPPORTUNITIES WITH WORLD LEADERS AND LITTLE ELSE NO SERIOUS FINANCIAL ASSISTANCE ARRIVED AND THE NEGOTIATIONS ON RESCHEDULING BULGARIA'S FOREIGN DEBT NOW THE HIGHEST PER CAPITA IN EASTERN EUROPE WERE NEVER COMPLETED A YEAR AFTER WINNING POWER MR DIMITROV'S PROFREEMARKET GOVERNMENT COLLAPSED A VICTIM OF ITS OWN INEXPERIENCE AND WESTERN INDIFFERENCE IT WAS SUCCEEDED BY AN INTERIM ADMINISTRATION THAT SEEMS TO HAVE ELEVATED ECONOMIC STAGNATION AND POLITICAL DRIFT TO AN ART YET IT WOULD BE WRONG TO CONCLUDE THAT BULGARIA'S DEMOCRATIC ACHIEVEMENTS HAVE BEEN SHORTLIVED MR ZHELEV REMAINS A SAFEGUARD AGAINST ANY COMMUNIST RESTORATION THE COUNTRY ALSO POSSESSES SOME GIFTED ADMINISTRATORS WHO COULD WORK MIRACLES GIVEN APPROPRIATE POLITICAL BACKING ONE EXAMPLE IS MARIANA TODOROVA WHO UNTIL RECENTLY HANDLED BULGARIA'S FOREIGN DEBT NEGOTIATIONS AND IS NOW RUMORED TO BE A CANDIDATE FOR THE PRIME MINISTER'S POST FURTHERMORE ALTHOUGH FAR FROM SMOOTH THE PROCESS OF MARKET REFORM INCLUDING THE RESTITUTION OF PROPERTY PREVIOUSLY CONFISCATED BY THE COMMUNISTS IS DESTINED TO CREATE A BULGARIAN MIDDLE CLASS AND RECENT BULGARIAN ADMINISTRATIONS HAVE ASSIDUOUSLY FOLLOWED THE WEST'S BIDDING IN BOTH ETHNIC AND FOREIGN RELATIONS THE COMMUNIST PRACTICE OF FORCING ETHNIC MUSLIMS TO CHANGE THEIR NAMES IN ORDER TO ERASE THEIR NATIONAL IDENTITY WAS NOT ONLY STOPPED BUT ACTUALLY REVERSED REAL EMANCIPATION HAS FOLLOWED DESPITE THE CONTINUED EXISTENCE OF A CONSTITUTIONAL BAN AGAINST ETHNICALLY BASED POLITICAL PARTIES THE MOVEMENT FOR RIGHTS AND FREEDOMS A MUSLIMDOMINATED ORGANIZATION HOLDS THE BALANCE OF POWER IN PARLIAMENT AND ITS LEADER AHMED DOGAN IS ONE OF BULGARIA'S MOST IMPORTANT POLITICIANS THE BULGARIANS HAVE ALSO SOUGHT TO PROMOTE A BALKANS HELSINKI PROCESS SIMILAR TO THE ONE THAT PEACEFULLY MANAGED WIDER EASTWEST RELATIONS AND THE GOVERNMENT HAS LED BY EXAMPLE THROUGH MILITARY CONFIDENCE BUILDING MEASURES WITH BOTH GREECE AND TURKEY THE COLLAPSE OF YUGOSLAVIA OVERTURNED MANY OF BULGARIA'S HOPES THE WEST NOT ONLY IGNORED BULGARIA'S INTERESTS BUT PERSISTED IN APPLYING A SET OF POLICIES THAT EVERY CITIZEN IN THE BALKANS KNEW HAD NO CHANCE OF SUCCESS THE RESULT WAS THE WORST OF BOTH WORLDS A WESTERN MILITARY PRESENCE IN THE REGION BUT ONE THAT SOLVES NONE OF THE LOCAL PROBLEMS THE BULGARIANS WISELY KEPT OUT OF THE YUGOSLAV CIVIL WAR BUT THE COUNTRY HAS NEVERTHELESS BORNE THE BURDEN OF THE ECONOMIC SANCTIONS AGAINST YUGOSLAVIA ONE OF ITS MAJOR TRADING PARTNERS THE BULGARIAN LOSSES NOW AMOUNT TO 2 BILLION ACCORDING TO UNITED NATIONS CALCULATIONS AND THE AUTHORITIES IN SOFIA HAVE ASKED THE WEST FOR COMPENSATION PRECEDENTS FOR SUCH REQUESTS DO EXIST INDEED THE UN CHARTER HAS A SPECIFIC CLAUSE TO THAT EFFECT THE US SUPPORTED BULGARIA'S CLAIM BUT EUROPEAN GOVERNMENTS FEARING A FLOOD OF CLAIMS FROM NEIGHBORING STATES PROMISED THAT INSTEAD OF COMPENSATION THE CONCLUSION OF BULGARIA'S ASSOCIATION AGREEMENT WITH THE EUROPEAN COMMUNITY WOULD BE ACCELERATED THEREBY OPENING UP NEW TRADING OPPORTUNITIES NOTHING OF THE KIND HAS HAPPENED AND THE BULGARIAN TREATY LANGUISHES UNSIGNED IN BRUSSELS ONE YEAR AFTER THIS PROMISE WAS GIVEN OSTENSIBLY THE DELAY IS DUE TO A DISPUTE ABOUT THE APPLICATION OF THE COMMUNITY'S ANTIDUMPING PROCEDURES AN ISSUE THAT HARDLY CONCERNS BULGARIA ALONE UNTIL THIS SUMMER ITALY BLOCKED THE BULGARIAN ASSOCIATION AGREEMENT AND THOUGH ITALY RELENTED AT THE LAST COMMUNITY SUMMIT FRANCE SPAIN AND PORTUGAL IMPOSED THEIR VETO ACCORDING TO BULGARIAN ESTIMATES THE DELAY HAS COST THE COUNTRY MORE THAN 200 MILLION IN LOST TRADING OPPORTUNITIES A PRINCELY SUM FOR A SMALL STATE BULGARIA'S TOTAL SHARE OF TRADE WITH THE COMMUNITY A MIGHTY 07 THE ATTITUDE TOWARD BULGARIA IS SYMPTOMATIC OF A MUCH MORE PROFOUND INABILITY WITHIN THE COMMUNITY TO MATCH ITS VISIONS OF A UNITED CONTINENT AND ITS FREE TRADE RHETORIC WITH SERIOUS DEEDS FRANCE WAS ALSO RESPONSIBLE FOR DELAYING THE RATIFICATION OF AN ASSOCIATION AGREEMENT WITH HUNGARY BECAUSE OF A DISPUTE ABOUT 500 TONS OF HUNGARIAN BEEF AND THE PRODUCTS IN WHICH THE EAST EUROPEANS ENJOY COMPETITIVE ADVANTAGES AGRICULTURE STEEL TEXTILES ARE ALSO THOSE THAT THE COMMUNITY HEAVILY SUBSIDIZES AND WISHES TO PROTECT FROM COMPETITION EVEN AFTER RATIFYING ASSOCIATION AGREEMENTS WITH THE CENTRAL EUROPEAN TRIO POLAND HUNGARY AND THE CZECH REPUBLIC THE COMMUNITY HAS USED ITS ANTIDUMPING PROCEDURES AGAINST THEM TWICE THIS YEAR ALONE FIRST AGAINST MEAT PRODUCTS SUPPOSEDLY BECAUSE OF ANIMAL DISEASES LAST RECORDED IN 1972 AND THEN AGAINST EAST EUROPEAN STEEL PRODUCTS WHICH ACCOUNT FOR ONLY 4 OF THE CONTINENT'S STEEL TRADE FAR FROM RELENTING IN THE SPIRIT OF THE NORTH AMERICAN FREE TRADE AGREEMENT AND THE RENEWED PUSH FOR A CONCLUSION TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE TALKS BRUSSELS IS NOW INTENSIFYING ITS OFFENSIVE THE COMMUNITY HAS PROPOSED TO DOUBLE ITS ANTIDUMPING INVESTIGATIVE TEAM THE EAST EUROPEANS ARE EFFECTIVELY ASKED TO REFORM THEIR ECONOMIES IN PREPARATION FOR FULL COMMUNITY MEMBERSHIP BUT ARE DEPRIVED OF THE NECESSARY TRADE OPPORTUNITIES BY WHICH THEY CAN ACHIEVE THIS GOAL TO PARAPHRASE AN OLD BALKAN PROVERB BRUSSELS IS PUSHING THE BOWL OF PROSPERITY NEARER BUT IT IS ALSO GIVING THE EAST EUROPEANS A SHORTER SPOON AT THE LAST WEEK'S MEETING OF COMMUNITY MINISTERS IN BRUSSELS EXAMINATION OF THE BULGARIAN ASSOCIATION AGREEMENT WAS YET AGAIN POSTPONED IF THIS POLICY CONTINUES IT WILL UNDERMINE PRECISELY THOSE DEMOCRATIC FORCES THE WEST HAS SOUGHT TO SUPPORT RECENT OPINION POLLS SUGGEST THAT THE COMMUNISTS AND NATIONALISTS ARE WINNING GROUND IN BULGARIA AND THAT PRESIDENT ZHELEV'S PROWESTERN POLICY IS INCREASINGLY DISCREDITED SERBIAN SYMPATHIES ARE ALSO GROWING IN BULGARIA AS IS OPPOSITION TO THE COSTLY MAINTENANCE OF THE YUGOSLAV ECONOMIC EMBARGO THE WEST STILL HAS TIME TO PREVENT DISASTER RATIFYING AN ASSOCIATION AGREEMENT WITH BULGARIA NOW WOULD ALLOW PRESIDENT ZHELEV TO RELAUNCH HIS COUNTRY'S REFORM PROCESS AND STABILIZE THE FRONTIERS OF THE BALKANS YET THIS REQUIRES VISION AND SACRIFICE VIRTUES THAT EUROPE ASKS FROM THE US WHILE REMAINING SO UNWILLING TO PRACTICE CLOSER TO HOME MR EYAL IS DIRECTOR OF STUDIES AT THE ROYAL UNITED SERVICES INSTITUTE IN LONDON SEE RELATED LETTER LETTERS TO THE EDITOR BULGARIA IS LOOKING FOR NEW SUGAR DADDY WSJ DEC 23 1993 9311300038 YY93 MM12 9312230123 931004 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED SIX NEW LISTINGS INCLUDING FIVE INITIAL PUBLIC OFFERINGS WHILE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 22 NEW LISTINGS FOR ITS NATIONAL MARKET SYSTEM INCLUDING 18 INITIAL OFFERINGS THE AMERICAN STOCK EXCHANGE ANNOUNCED TWO NEW LISTINGS INCLUDING ONE INITIAL OFFERING THE BIG BOARD BEGAN TRADING SHARES IN THE FOLLOWING INITIAL OFFERINGS BARNES & NOBLE INC NEW YORK A BOOKSTORE OPERATOR UNDER BKS BELDEN INC RICHMOND IND A MAKER OF WIRE CABLE AND CORD PRODUCTS FOR THE ELECTRICAL INDUSTRY UNDER BWC CAPITAL GUARANTY CORP SAN FRANCISCO AN INSURANCE HOLDING COMPANY UNDER CGY CORRPRO COS MEDINA OHIO A PROVIDER OF CORROSION CONTROL PRODUCTS UNDER CO AND GLOBAL HIGH INCOME DOLLAR FUND INC NEW YORK A CLOSEDEND COMPANY UNDER GHI THE BIG BOARD ALSO BEGAN TRADING SHARES IN INTEGRATED HEALTH SERVICES INC OWINGS MILLS MD A MEDICAL SERVICES COMPANY UNDER IHS THE COMPANY FORMERLY TRADED OVERTHECOUNTER THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ADDED THE FOLLOWING INITIAL OFFERINGS APS HOLDING CORP HOUSTON AN AUTO PARTS DISTRIBUTOR UNDER APSI FCB FINANCIAL CORP NEENAH WIS A COMPANY ORGANIZED TO ACQUIRE THE STOCK OF FOX CITIES BANK MONACO COACH CORP JUNCTION CITY ORE A MAKER OF MOTOR COACHES UNDER MCCO BROADCASTING PARTNERS INC NEW YORK AN OWNER OF RADIO STATIONS UNDER BPIX CSB FINANCIAL CORP LYNCHBURG VA A COMPANY ORGANIZED TO ACQUIRE THE STOCK OF COOPERATIVE SAVINGS BANK UNDER COSB ALLIED HOLDINGS INC DECATUR GA A TRANSPORTER OF AUTOMOBILES AND LIGHT TRUCKS UNDER HAUL CHECKMATE ELECTRONICS INC ROSWELL GA A MAKER OF MACHINES THAT READ MAGNETIC INK CHARACTERS UNDER CMEL FIRST PALM BEACH BANCORP INC WEST PALM BEACH FLA A COMPANY ORGANIZED TO ACQUIRE ALL STOCK OUTSTANDING OF FIRST FEDERAL SAVINGS & LOAN ASSOCIATION UNDER FFPB KENTUCKY ELECTRIC STEEL INC ASHLAND KENT AN OWNER AND OPERATOR OF A MINISTEEL MILL UNDER KESI LADY LUCK GAMING CORP LAS VEGAS A DEVELOPER OF CASINOS UNDER LUCK LOWENSTEIN FURNITURE GROUP INC POM THE NASDAQ ALSO ADDED THE COMMON STOCK AND WARRANTS OF THE FOLLOWING INITIAL OFFERINGS MICROPROBE CORP BOTHELL WASH A BIOMEDICAL COMPANY THAT DEVELOPS DIAGNOSTIC TESTS UNDER MPRO & MPROW ULTRATECH STEPPER INC SANTA CLARA CALIF A PHOTOLITHOGRAPHY CONCERN UNDER UTEK LEADER FINANCIAL CORP MEMPHIS TENN A COMPANY ORGANIZED TO ACQUIRE THE STOCK OF LEADER FEDERAL SAVINGS & LOAN UNDER LFCT NATIONAL RV HOLDINGS INC PERRIS CALIF A MAKER AND MARKETER OF MOTORHOMES THROUGH A SUBSIDIARY UNDER NRVH NORTH AMERICAN WATCH CORP LYNDHURST NJ A MAKER OF WATCHES UNDER NAWC SFX BROADCASTING INC NEW YORK AN OWNER OF RADIO STATIONS UNDER SFXBA AND SUBURBAN BANCORP INC CINCINNATI A COMPANY ORGANIZED TO ACQUIRE THE STOCK OF SUBURBAN FEDERAL SAVINGS & LOAN UNDER SBCN THE FOLLOWING JOINED THE NASDAQ FROM THE NASDAQ SMALLCAP MARKET GOTHAM APPAREL CORP NEW YORK A WOMEN'S APPAREL CONCERN UNDER TBAY FUTURE HEALTHCARE INC CINCINNATI A CONDUCTOR OF INDEPENDENT TRIALS FOR THE PHARMACEUTICAL INDUSTRY UNDER FHCI AND CLASS A COMMON CLASS B WARRANTS AND CLASS C WARRANTS OF LIDAK PHARMACEUTICALS LA JOLLA CALIF A PHARMACEUTICAL CONCERN UNDER LDAKA LDAKM AND LDAKZ THE NASDAQ ALSO BEGAN TRADING SHARES IN SUDBURY INC CLEVELAND AN INDUSTRIAL PRODUCTS MAKER AND MARKETER UNDER SUDS SUDBURY PREVIOUSLY TRADED ON THE OTC BULLETIN BOARD THE AMEX BEGAN TRADING SHARES IN FORTUNE PETROLEUM CORP AGOURA HILLS CALIF AN OIL AND GAS CONCERN UNDER FPX THE COMPANY FORMERLY TRADED OVERTHECOUNTER THE AMEX ALSO BEGAN TRADING COMMON AND PREFERRED SHARES IN THE INITIAL OFFERING OF SAHARA GAMING CORP LAS VEGAS A CASINO CONCERN UNDER SGM THE AMEX'S EMERGING COMPANY MARKETPLACE BEGAN TRADING SHARES IN A FORMER OVERTHECOUNTER COMPANY LEATHER FACTORY INC FORT WORTH TEXAS A MANUFACTURER AND DISTRIBUTOR OF LEATHER AND LEATHERCRAFT SUPPLIES UNDER TLFEC THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS IN THE FOLLOWING COMPANIES GYMBOREE CORP MEGAHERTZ CORP GEOTEK INDUSTRIES INC AND IIS INTELLIGENT INFORMATION SYSTEMS LTD THE PACIFIC STOCK EXCHANGE BEGAN TRADING OPTIONS IN IIS INTELLIGENT INFORMATION SYSTEMS LTD AND GEOTEK INDUSTRIES INC 9312230001 930930 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 OSI SPECIALTIES INC 125 MILLION OF SENIOR SUBORDINATED NOTES DUE OCT 1 2003 PRICED AT PAR TO YIELD 925 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES INC POTOMAC ELECTRIC POWER CO 175 MILLION OF FIRSTMORTGAGE BONDS PRICED IN THREE TRANCHES ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 50 MILLION OF BONDS DUE OCT 15 2003 WAS PRICED AS 5625S AT 99223 TO YIELD 5728 THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 42 BASIS POINTS ABOVE TREASURYS THE COMPETITIVE BID WAS WON BY GOLDMAN SACHS & CO THE SECOND TRANCHE 50 MILLION OF BONDS DUE OCT 15 2008 WAS PRICED AS 5875S AT 98968 TO YIELD 598 THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 68 BASIS POINTS ABOVE TREASURYS THE COMPETITIVE BID WAS WON BY MORGAN STANLEY & CO THE THIRD TRANCHE 75 MILLION OF BONDS DUE OCT 15 2024 WAS PRICED AS 6875S AT 9932 TO YIELD 6929 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS THE COMPETITIVE BID WAS WON BY LEHMAN BROTHERS INC ALL PARTS ARE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P PROGRESSIVE CORP 150 MILLION OF DEBENTURES DUE OCT 1 2013 PRICED AT PAR TO YIELD 7 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBT WAS PRICED AT A SPREAD OF 86 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE OFFERING WAS WON IN A COMPETITIVE BID BY CS FIRST BOSTON ALBANY INTERNATIONAL CORP FOUR MILLION CLASS A COMMON SHARES PRICED AT 1763 EACH ACCORDING TO THE COMPANY UNDERWRITERS IN THE US ARE LEHMAN BROTHERS INC JP MORGAN SECURITIES INC AND WERTHEIM SCHRODER & CO INC THE INTERNATIONAL OFFERING IS MANAGED BY LEHMAN BROTHERS INTERNATIONAL JP MORGAN SECURITIES LTD AND WERTHEIM SCHRODER INTERNATIONAL LTD ALLIED HOLDINGS INC INITIAL OFFERING OF THREE MILLION COMMON SHARES PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC BELDEN INC INITIAL OFFERING OF 21 MILLION COMMON SHARES PRICED AT 1425 EACH THROUGH UNDERWRITERS LED BY DILLON READ & CO CLEAR CHANNEL COMMUNICATIONS INC 19 MILLION SHARES PRICED AT 35375 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC ACCORDING TO THE COMPANY CMS ENERGY CORP FOUR MILLION COMMON SHARES PRICED AT 26625 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO EQUICREDIT CORP 25 MILLION COMMON SHARES PRICED AT 2050 EACH THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC GENERAL INSTRUMENTS CORP 56 MILLION COMMON SHARES PRICED AT 51 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO ISTAT CORP 22 MILLION COMMON SHARES PRICED AT 16 EACH THROUGH SMITH BARNEY SHEARSON INC AND PAINEWEBBER INC ACCORDING TO THE COMPANY KENTUCKY ELECTRIC STEEL CORP INITIAL OFFERING OF 45 MILLION COMMON SHARES PRICED AT 12 EACH THROUGH UNDERWRITERS LED BY WHEAT FIRST BUTCHER & SINGER MANUFACTURED HOME COMMUNITIES INC 35 MILLION COMMON SHARES PRICED AT 4475 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO SFX BROADCASTING INC INITIAL OFFERING OF 35 MILLION CLASS A COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO SOUTHWEST SECURITIES GROUP INC 15 MILLION COMMON SHARES PRICED AT 1050 EACH THROUGH UNDERWRITERS LED BY RAYMOND JAMES & ASSOCIATES INC ACCORDING TO THE COMPANY DELAWARE RIVER AND BAY AUTHORITY 12099 MILLION OF REVENUE BONDS SERIES 1993 PRICED BY A DONALDSON LUFKIN & JENRETTE SECURITIES CORP GROUP TO YIELD FROM 275 IN 1994 TO 5125 IN 2024 THE BONDS ARE RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P SAN DIEGO PUBLIC FACILITIES FINANCING AUTHORITY 250 MILLION SEWER REVENUE BONDS SERIES 1993 PRICED BY A MORGAN STANLEY & CO GROUP TO YIELD FROM 28 IN 1994 TO 538 IN 2020 THE BONDS ARE RATED SINGLEA1 BY MOODY'S AND SINGLEAMINUS BY S&P EXCEPT FOR AMBACINSURED BONDS DUE 19972013 WHICH ARE RATED TRIPLEA BY BOTH AGENCIES TARRANT COUNTY TEXAS WATER CONTROL AND IMPROVEMENT DISTRICT NO 1 3218 MILLION OF SERIES 1993 WATER REVENUE REFUNDING BONDS THROUGH UNDERWRITERS LED BY PAINEWEBBER INC YIELDS RANGE FROM 265 IN 1994 TO 525 IN 2012 AND 2013 MOST OF THE BONDS ARE RATED SINGLEA1 BY MOODY'S AND DOUBLEA BY S&P BUT BONDS DUE IN 200913 ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 600 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1617 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 725 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY UBS SECURITIES INC THE OFFERING SERIES 1993212 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 665 AND WEIGHTED AVERAGE MATURITY OF 178 MONTHS ALBERTA CANADIAN PROVINCE 500 MILLION CANADIAN DOLLARS OF 725 EUROBONDS DUE OCT 28 2005 ISSUED AT 100608 VIA SCOTIAMCLEOD AS BOOKRUNNER REOFFERED TO INVESTORS AT 99833 TO OFFER A YIELD PICKUP OF 40 BASIS POINTS ABOVE 75 CANADIAN GOVERNMENT NOTE DUE 2003 FEES 2125 AMOY PROPERTIES LTD HONG KONG PARENT 250 MILLION OF 55 OF CONVERTIBLE CUMULATIVE PERPETUAL EURONOTES AT ISSUE PRICE PAR VIA ROBERT FLEMING & CO CONVERTIBLE AT 20 PREMIUM INTO PREFERENCE SHARES COMPULSORY CONVERSION AT ANY TIME AFTER 2003 SUBJECT TO COMPANY'S SHARE PRICE EQUAL OR ABOVE 150 OF CONVERSION PRICE NOTES ARE NONCALLABLE FOR FIRST THREE YEARS AND THEREAFTER AT 105 THEN AT 1 REDUCTION PER ANNUM TO PAR SUBJECT TO 130 TAX RULE COMMISSIONS WEREN'T DISCLOSED BHF FINANCE NETHERLANDS BV GERMAN PARENT 300 MILLION MARKS OF 625 EUROBONDS DUE OCT 28 2003 AT ISSUE PRICE PAR VIA BHFBANK GUARANTOR BHFBANK FEES UNDISCLOSED GENERAL ELECTRIC CAPITAL CORP US PARENT 100 MILLION OF FLOATINGRATE EURONOTES DUE OCT 29 1996 VIA KIDDER PEABODY SECURITIES LTD BONDS TO BE PRICED NO LATER THAN OCT 15 INTEREST PAID QUARTERLY AND FLOATS FLAT AT THE 91DAY MEXICAN CETES RATE INTEREST AND PRINCIPAL INDEX LINKED TO MEXICAN PESO FEES 025 GUANGZHOU INVESTMENT CO CHINA 75 MILLION OF CONVERTIBLE EUROBONDS DUE OCT 8 1998 AT ISSUE PRICE PAR VIA MORGAN STANLEY INTERNATIONAL LTD CONVERTIBLE INTO ORDINARY OF COMPANY AT INDICATED PREMIUM OF 20 TO 25 OVER CLOSING PRICE OF SHARES TERMS TO BE FIXED ON OR BEFORE OCT 4 INDICATED COUPON 45 TO 55 FEES 25 IBM INTERNATIONAL FINANCE NV US PARENT 20 BILLION YEN OF 35 EUROBONDS DUE JAN 24 1997 AT ISSUE AND FIXED REOFFER PRICE 1002 VIA MERRILL LYNCH INTERNATIONAL LTD AT REOFFER PRICE BONDS YIELD 343 SUPPORT AGREEMENT FROM PARENT FEES 02 ITOCHU FINANCE EUROPE PLC JAPANESE PARENT FIVE BILLION YEN OF 31 EUROBONDS DUE FEB 22 1996 AT ISSUE PRICE 1002 VIA SANWA INTERNATIONAL PLC AT COMANAGERS' BREAKEVEN PRICE PAR BONDS YIELD 31 KEEPWELL AGREEMENT WITH ITOCHU CORP FEES 02 JOHNSON & JOHNSON US 150 BILLION LIRE OF 882 EUROBONDS DUE OCT 27 2003 AT ISSUE PRICE 102 VIA BANCA NAZIONALE DEL LAVORO AT COMANAGERS' BREAKEVEN PRICE 100 BONDS YIELD 882 FEES TWO LEEDS BUILDING SOCIETY UK 100 MILLION OF FLOATINGRATE EURONOTES DUE OCT 15 1998 AT ISSUE AND FIXED REOFFER PRICE 999 VIA GOLDMAN SACHS INTERNATIONAL LTD INTEREST PAID SEMIANNUALLY AND FLOATS AT 15 BASIS OVER THE LONDON INTERBAK OFFERED RATE FEES 015 MEGAL FINANCE CO CAYMAN ISLANDS 175 MILLION SWISS FRANCS OF 45 NOTES DUE NOV 12 1998 PRICED AT 10225 VIA BANQUE PARIBAS SUISSE NOTES SECURED THROUGH PUT AGREEMENT WITH GAZ DE FRANCE RUHR GAS AG AND OEMV AG FEES STANDARD MITSUI & CO USA JAPANESE PARENT 10 BILLION YEN OF 39 EUROBONDS DUE JAN 26 1999 AT ISSUE AND FIXED REOFFER PRICE 10067 VIA SAKURA FINANCE INTERNATIONAL LTD AT REOFFER PRICE BONDS YIELD 3754 KEEPWELL AGREEMENT WITH MITSUI & CO FEES 051 THERE IS A SHORT FIRST COUPON NESTLE HOLDINGS INC SWISS PARENT 300 MILLION CANADIAN DOLLARS OF 625 EUROBONDS DUE OCT 20 1998 ISSUED AT 100825 VIA UBS LTD REOFFERED AT 992 TO OFFER A YIELD PICKUP OF FIVE BASIS POINTS OVER COMPARABLE CANADIAN GOVERNMENT NOTE FEES 1875 STRAIT CROSSING INC CANADA 661 MILLION CANADIAN DOLLARS OF INFLATIONINDEXED BONDS DUE APRIL 1 2032 TO YIELD 45 COMPOUNDED SEMIANNUALLY THE BONDS ARE RATED TRIPLEA BY MOODY'S AND S&P UNDERWRITERS ARE GORDON CAPITAL CORP AND WOOD GUNDY INC WORLD BANK SUPRANATIONAL 150 BILLION LIRE OF FLOATINGRATE EURONOTES DUE OCTOBER 1998 AT ISSUE PRICE PAR VIA INSTITUTO BANCARIO SAN PAOLO SPA INTEREST FLOATS AT 35 BASIS POINTS BELOW SIXMONTH LIBOR FEES 025 INTEREST PAID SEMIANNUALLY 9312220183 931222 VIACOM ASKS PARAMOUNT FOR MORE TIME CABLETV CONCERN MAY GET MORE CASH FROM NYNEX TO COUNTER QVC OFFER BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK VIACOM INC ASKED PARAMOUNT COMMUNICATIONS INC FOR MORE TIME TO PUT TOGETHER A NEW OFFER FOR PARAMOUNT TO COMPETE WITH A SWEETENED 10 BILLION BID BY QVC NETWORK INC EVEN AS THE CABLETELEVISION COMPANY MADE THE REQUEST PEOPLE CLOSE TO NYNEX CORP INDICATED THAT THE NEW YORK REGIONAL PHONE COMPANY WAS CLOSE TO AN AGREEMENT TO INCREASE ITS 12 BILLION INVESTMENT IN VIACOM TO HELP BOLSTER VIACOM'S BID FOR PARAMOUNT AN ENTERTAINMENT AND PUBLISHING CONCERN THE THREEMONTHOLD BATTLE FOR PARAMOUNT PROMISES TO DRAG ON THROUGH THE NEW YEAR UNDER AUCTION RULES ANNOUNCED BY PARAMOUNT EACH SIDE MUST KEEP ITS OFFER OPEN FOR 10 DAYS AFTER THE LATEST BID BY EITHER COMPANY AND AS ONE INVESTMENT BANKER NOTED PARAMOUNT DIDN'T PROVIDE ANY STRONG INCENTIVE FOR EITHER SIDE TO MAKE ITS BEST BID IMMEDIATELY QVC'S NEW OFFER FOR PARAMOUNT SUBMITTED MONDAY BOOSTED THE VALUE OF THE HOMESHOPPING CHANNEL'S OFFER ONLY SLIGHTLY VIACOM MEANWHILE LEFT ITS PREVIOUS 96 BILLION BID UNCHANGED PARAMOUNT STOCK FELL 175 A SHARE TO 8025 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY ANALYSTS AND TRADERS SAID IT APPEARED THAT BOTH VIACOM AND QVC WERE KEEPING THEIR POWDER DRY FOR HIGHER BIDS LATER IN THE WEEK EVEN THOUGH PARAMOUNT HAD ASKED BOTH SIDES TO SUBMIT THEIR BEST BIDS BY 4 PM MONDAY VIACOM WAS SAID TO HAVE ASKED FOR ANOTHER DAY OR TWO POSSIBLY UNTIL TOMORROW TO SUBMIT A HIGHER OFFER AND QVC SAID IT RESERVED THE RIGHT TO INCREASE ITS BID FURTHER IN RESPONSE TO ANY HIGHER VIACOM BID PEOPLE CLOSE TO QVC PUT VIACOM ON NOTICE THAT QVC AND ITS PARTNERS LED BY ATLANTA REGIONAL PHONE COMPANY BELLSOUTH CORP WERE PREPARED TO GO HIGHER IF NECESSARY TO COMPETE WITH VIACOM VIACOM WAS ALSO BELIEVED TO BE NEGOTIATING FOR AN ADDITIONAL INVESTMENT FROM VIDEORENTAL CONCERN BLOCKBUSTER ENTERTAINMENT CORP WHICH HAS ALREADY PUT UP 600 MILLION VIACOM WAS ALSO RUMORED TO BE TALKING WITH OTHER COMPANIES SUCH AS JAPANESE VIDEOGAME MAKER NINTENDO CO ABOUT SIMILAR INVESTMENTS IN TOKYO THIS MORNING A NINTENDO SPOKESMAN SAID HE WAS UNAWARE OF ANY PENDING ANNOUNCEMENT OF A VIACOM INVESTMENT BY LEAVING UNCHANGED ITS PREVIOUS BID CURRENTLY VALUED AT 96 BILLION OR 7964 A SHARE VIACOM RAN THE RISK THAT PARAMOUNT'S BOARD WOULD ENDORSE THE QVC OFFER AT ITS MEETING YESTERDAY AFTERNOON PARAMOUNT SAID THE BOARD ADJOURNED WITHOUT TAKING ACTION BUT PLANNED TO RECONVENE TODAY BUT VIACOM ALSO BENEFITED FROM THE STOCK MARKET'S REACTION TO QVC'S SEEMINGLY GREATER CHANCES OF WINNING THE CONTEST QVC STOCK DROPPED 150 A SHARE TO 42 ON THE NASDAQ STOCK MARKET WHICH PARED THE VALUE OF QVC'S NEW BID AS A RESULT OF THE NEW TERMS AND THE QVC STOCKPRICE DROP THE VALUE OF THE NEW QVC BID 10 BILLION OR 8345 A SHARE WAS LITTLE CHANGED FROM THE PREVIOUS BID NEW MIX OF SECURITIES IN ITS NEW BID QVC BOOSTED THE CASH IT IS OFFERING FOR 51 OF PARAMOUNT SHARES TO 92 A SHARE FROM 90 QVC LEFT THE AMOUNT OF ITS OWN COMMON STOCK BEING OFFERED FOR THE REMAINING 49 OF PARAMOUNT SHARES UNCHANGED AT 143 QVC SHARES FOR EACH PARAMOUNT SHARE AND SHIFTED THE MIX OF OTHER SECURITIES IN THE REST OF THE OFFER INSTEAD OF A CONVERTIBLE PREFERRED STOCK WORTH 15 A SHARE QVC CHANGED THE SECURITIES TO REGULAR PREFERRED TOGETHER WITH WARRANTS FOR THE RIGHT TO BUY QVC STOCK AT 7034 A SHARE TRADERS VALUED THE NEW PACKAGE OF PREFERRED AND WARRANTS AT ONLY 14 TO 15 A SHARE WHILE ACKNOWLEDGING THAT THE NEW AUCTION PROCESS MIGHT BE SLOW ONE PARTICIPANT SAID PARAMOUNT'S STRATEGISTS BELIEVED THE PROCESS WOULD PRODUCE BETTER BIDS IF EACH SIDE HAD TIME TO REACT TO THE OTHER'S PROPOSALS MEANWHILE ADDRESSING AN AMBIGUITY LEFT BY DELAWARE'S SUPREME COURT IN A RECENT RULING INVOLVING PARAMOUNT A JUDGE RULED THAT MERGERS INVOLVING STOCK SWAPS AMONG PUBLIC SHAREHOLDERS DON'T TRIGGER A CHANGE OF CORPORATE CONTROL 9312220182 931222 WHO'S NEWS DIED E GIFFORD UPJOHN 89 FORMER CHAIRMAN OF UPJOHN CO MONDAY IN KALAMAZOO MICH OF CANCER 9312220181 931222 RETAILING GET TINY MINIATURE BOOKS ARE SEASONAL BESTSELLERS BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL IN BOOKSTORES THIS CHRISTMAS TINY IS HUGE BARNES & NOBLE INC IN NEW YORK CITY REPORTS THAT IT RECENTLY SOLD MORE THAN 3000 COPIES NATIONWIDE OF CATMAS CAROLS A LITTLE BOOK OF SONGS FOR FELINES IN ONE WEEK WE THREE CATS OF ORIENT ARE TERRIFIED TO GET IN THE CAR THE CAT VOLUME IS SMALL ENOUGH TO FIT INSIDE A CHRISTMAS STOCKING AT ONLY 695 HOW CAN YOU NOT BUY IT FOR YOUR CAT ASKS ELAINE PETROCELLI OWNER OF BOOK PASSAGE IN CORTE MADERA CALIF WHICH IS ALSO DOING A BRISK BUSINESS IN CATMAS CAROLS DOZENS OF MINIBOOKS ARE SELLING WELL THIS CHRISTMAS MOSTLY DISPLAYED NEAR CASH REGISTERS AND AT THE FRONT OF BOOKSTORES THE TINY TITLES COME IN CATEGORIES FROM HUMOR TO RELIGION SOME ARE SO SMALL LIKE A CUP OF CHRISTMAS TEA THAT THEY DANGLE ON STRINGS AND CAN BE HUNG AS TREE ORNAMENTS NOT EVERYBODY LOVES THE LITTLE VOLUMES MARGARET MAUPAN A BUYER FOR THE GIANT TATTERED COVER BOOKSTORE IN DENVER COLO SAYS THEY ARE TINY HARD TO KEEP TRACK OF AND ALL OVER THE PLACE I'VE HAD IT WITH CUTE BUT THE BOOM CONTINUES PUBLISHERS AND BOOKSELLERS ATTRIBUTE IT TO CONSUMERS' DESIRE FOR MEANINGFUL BUT INEXPENSIVE GIFTS REGULAR TRADE BOOKS HAVE BEEN BALLOONING LATELY TO 800 PAGES AND UP WITH PRICES TO MATCH BETWEEN 25 AND 30 AND WHILE SOME OF THEM SELL WELL SOME CONSUMERS HAVE SHORTER ATTENTION SPANS BOOKSELLERS BELIEVE THE TWIN MERITS OF LOWER PRICE AND FEWER PAGES HAVE HELPED MAKE BESTSELLERS OF SUCH PETITE NOVELS AS THE BRIDGES OF MADISON COUNTY AND SUCCESS BEGETS IMITATION ONCE TINY BOOKS STARTED SELLING IN THE MULTIPLE MILLIONS THE BANDWAGON GOT VERY CROWDED WE USED TO THINK THESE WERE A PASSING NOVELTY BUT NOW THERE ARE LITERALLY THOUSANDS OF TITLES SAYS MAUREEN GOLDEN GENERAL MERCHANDISING MANAGER FOR BARNES & NOBLE THE CATEGORY HAS GOTTEN SO HUGE WE DO A SEPARATE BESTSELLER LIST WE SEE SALES OF MINIATURES JUMP ESPECIALLY AT CHRISTMAS THE ALLTIME KING OF THE TINY GENRE IS LIFE'S LITTLE INSTRUCTION BOOK NUGGETS OF WISDOM FROM A FATHER TO HIS SON PUBLISHED IN 1991 IT HAS SOLD MORE THAN FIVE MILLION COPIES IN PAPERBACK AND VOLUME II OUT THIS CHRISTMAS HAS ALREADY SOLD MORE THAN A MILLION COPIES FOR RUTLEDGE HILL PRESS OF NASHVILLE TENN SUZY CARROLL OF MADISON CONN BUYS MINIATURE BOOKS FOR NEARLY EVERYONE ON HER CHRISTMAS LIST HALLMARK CARDS GOT TO BE 150 SO YOU MAY AS WELL SPEND TWO DOLLARS MORE AND GET A DARLING LITTLE BOOK SHE SAYS THIS YEAR MS CARROLL BOUGHT 10 COPIES OF I AM MY OWN BEST CASUAL ACQUAINTANCE THAT'S A SMALL ORDER COMPARED TO THAT OF ALAN PALEY OWNER OF A NEW JERSEY COMPANY THAT PRODUCES CORPORATE VIDEOS AND POLITICAL COMMERCIALS MR PALEY JUST BOUGHT 60 COPIES OF THE LITTLE BOOK OF HAND SHADOWS AT 495 EACH TO GIVE TO FAVORED CLIENTS THESE BOOKS ARE CLEVER AND UNUSUAL SAYS MR PALEY WHEN YOU THINK ABOUT IT HAND SHADOWS WERE THE FIRST MOVING PICTURES SO I'M SENDING OUT A FUNNY NOTE SAYING THAT AND THANKING PEOPLE FOR THEIR BUSINESS PUBLISHERS HAVE LONG MADE MINIBOOKS FOR CHILDREN BUT MINIATURIZATION FOR GROWNUPS IS MORE RECENT ONE OF THE FIRST PUBLISHERS TO DO IT WAS RUNNING PRESS A SMALL FAMILYOWNED COMPANY IN PHILADELPHIA WHICH INTRODUCED ITS FIRST 10 TITLES IN 1989 LAWRENCE TEACHER WHO OWNS RUNNING PRESS WITH HIS BROTHER STUART NICKNAMED BUZ SAYS THEY GOT THE IDEA WHEN A CALIFORNIA BOOKSELLER TOLD THEM HIS CUSTOMERS WERE IRRESISTABLY DRAWN TO THE LILLIPUT LINE OF FOREIGNLANGUAGE DICTIONARIES PRODUCED BY THE GERMAN PUBLISHER LANGENSCHEIDT THE BOOKSELLER PREDICTED THAT A LINE OF TINY GENERALINTEREST BOOKS WOULD FLY OUT OF BOOKSTORES THE TEACHER BROTHERS WHO SENT THE BOOKSELLER 500 FOR HIS SUGGESTION ARE GLAD THEY TOOK HIS ADVICE THE RUNNING PRESS MINIATURE EDITIONS LINE NOW PRINTS MORE THAN 50 TITLES INCLUDING SONNETS BY ELIZABETH BARRETT BROWNING AND DYLAN THOMAS'S A CHILD'S CHRISTMAS IN WALES AND THE COMPANY HAS SOLD MORE THAN EIGHT MILLION VOLUMES EACH OF THE HARDCOVER BOOKS IN THE LINE IS ROUGHLY TWO INCHES SQUARE TO ENCOURAGE COLLECTORS THE COMPANY HAS STARTED SELLING LITTLE WOODEN RACKS THAT DISPLAY 10 BOOKS THEIR SUCCESS HAS ATTRACTED SCORES OF COMPETITORS ABBEVILLE PRESS A NEW YORK PUBLISHER OF ART BOOKS HAS SOLD A MILLION COPIES OF ITS TINY TITLES IN THE PAST SEVERAL YEARS THEIR BOOKS AVERAGE 300 PAGES MEASURE FOUR INCHES BY FOURANDAHALF INCHES AND COST 1095 THE BESTSELLERS SO FAR A COLLECTION OF NORMAN ROCKWELL MAGAZINE COVERS AND A 472PAGE MINIVERSION OF AUDUBON'S BIRD DRAWINGS CHRONICLE BOOKS OF SAN FRANCISCO FIRST WEIGHED IN DURING THE MID1980S WITH A FOURBYSIXINCH IRISH COOKBOOK THE COMPANY HAS SINCE SOLD NEARLY FOUR MILLION COPIES OF 35 DIFFERENT COOKBOOKS WORKMAN PRESS HAD A MILLIONCOPY HIT A FEW YEARS AGO WITH 14000 THINGS TO BE HAPPY ABOUT AND HARPERCOLLINS SAN FRANCISCO HAS SOLD A MILLION COPIES OF MEDITATIONS FOR WOMEN WHO DO TOO MUCH THE PUBLISHER WAS QUICK TO FOLLOW UP WITHMEDITATIONS FOR CHRISTIANS WHO TRY TO BE PERFECT THE TREND HAS GOTTEN SO HOT SOME BOOKSELLERS HAVE STARTED TO GRUMBLE THAT THE MARKET IS SATURATED AND THEIR COUNTERS ARE GETTING TOO CLUTTERED THEY ALSO GRIPE THAT POORLY MADE BOOKS ARE BEGINNING TO JOIN THE RANKS AND MAY TURN CONSUMERS OFF TO THE CATEGORY I WOULD LOVE TO GET A BIG BROOM AND SWEEP THE COUNTER CLEAR SAYS NAN KNECHT DISTRICT MANAGER FOR THE BOOKLAND CHAIN BASED IN MAINE BUT JACK JENSON PUBLISHER OF CHRONICLE BOOKS THINKS TINY BOOKS ARE HERE TO STAY LIKE ANY OTHER SUCCESSFUL PUBLISHING TREND THERE IS A LOT OF METOOISM AND SOME POOR QUALITY BUT I THINK CONSUMERS WILL STILL BE ATTRACTED TO THEM I EXPECT THERE WILL BE A SHAKEOUT BUT THE BEAUTIFULLY MADE WELLWRITTEN ONES WILL ALWAYS BE POPULAR 9312220180 931222 12 DAYS OF CHRISTMAS GOODBYE VISIONS OF SUGARPLUMS HELLO SCALLOPS RIBS AND VENISON BY KATHLEEN DEVENY STAFF REPORTER OF THE WALL STREET JOURNAL WILL KING HAS A SUGGESTION FOR SHOPPERS STILL PUZZLING OVER THE PERFECT PRESENT GIVE THE GIFT OF PORK BARBECUED PORK THAT IS FOR ABOUT 80 MR KING'S BARBECUE JOINT IN KINSTON NC WILL GUARANTEE NEXTDAY DELIVERY OF THE OINK EXPRESS SAMPLER THE FROZEN FEAST INCLUDES BARBECUED CHOPPED PORK AND BABY BACK RIBS AS WELL AS COLLARD GREENS BLACKEYED PEAS AND HUSH PUPPIES IT'S A REALLY NEAT DIFFERENT KIND OF GIFT MR KING SAYS EACH DAY THIS WEEK HE EXPECTS TO SHIP OUT MORE THAN 100 OF HIS SLOPPY SPECIALTIES TO DISPLACED NORTH CAROLINIANS AND A FEW UNSUSPECTING NORTHERNERS 10 TIMES THE NUMBER OF ORDERS HE USUALLY RECEIVES NOT LONG AGO MAILORDER GOURMETS WERE LIMITED TO BASKETS OF FRUIT OR BOXES OF FILET MIGNON FROM THAT VENERABLE PURVEYOR OF MAILORDER MEAT OMAHA STEAKS INTERNATIONAL NOWADAYS THOUGH THANKS TO FAXES HIGHTECH PACKAGING AND OVERNIGHT DELIVERY WELLWISHERS CAN SHOWER FRIENDS WITH SUCH GOURMET ODDITIES AS ORGANIC PHEASANT GOAT'S MILK YOGURT AND FRESH NANTUCKET SCALLOPS TWO POUNDS FOR 70 MOREY FISH CO IN MOTLEY MINN DOES A BRISK HOLIDAY BUSINESS IN SMOKED WALLEYE FILETS THE FRESHWATER FISH ARE POPULAR AMONG FORMER MINNESOTANS SAYS KARLA PETERSON RETAIL MANAGER AT MOREY THE COMPANY ALSO FILLS CORPORATE GIFT ORDERS SUCH AS THE SMOKED KING SALMON COMPLETE WITH HEAD AND SCALES SHIPPED THIS YEAR FOR A MAKER OF FISHING LURES FOR THE GAME HUNTER WHO COMES HOME EMPTYHANDED JOE DELFINO THE PROPRIETOR OF THE OLD MOSES FARM IN VERMONT OFFERS MAILORDER VENISON MR DELFINO SAYS HIS VENISON HAS ONLY 25 FAT AND BEFORE SLAUGHTER THE DEER ROAM FREE AND DINE ONLY ON GRAIN DEMAND HAS BEEN SO STRONG THAT MR DELFINO RECENTLY BEGAN OFFERING RABBIT AND IS CONSIDERING SELLING DUCK AND LAMB VIA MAIL THIS HOLIDAY SEASON ANTHONY RIOTTO PRESIDENT OF RIOTTO JONES INC AN EXECUTIVESEARCH FIRM IN MANHATTAN IS SENDING A RACK OF VENISON TO SELECT CLIENTS AT ONE POINT WE SENT CITRUS FRUIT AND THAT WAS VERY NICE HE SAYS BUT VENISON IS SPECIAL 9312220179 931222 DESTECT TO BUY BACK MORE SHARES HOUSTON DESTEC ENERGY INC SAID IT WILL REPURCHASE 20 MILLION OF ITS COMMON SHARES OVER THE NEXT THREE YEARS THE REPURCHASE WILL BE IN ADDITION TO THE 20 MILLION IN STOCK THE POWER COMPANY'S BOARD AUTHORIZED IT TO BUY BACK IN AUGUST 1992 THAT STOCK REPURCHASE WHICH WAS TO TAKE PLACE OVER THREE YEARS WILL BE COMPLETED THIS YEAR THE COMPANY SAID IT BOUGHT BACK 13 MILLION SHARES THIS YEAR AND EXPECTS TO THE END 1993 WITH APPROXIMATELY 61 MILLION SHARES OUTSTANDING IN A STATEMENT CHAIRMAN ROBERT MCFEDRIES SAID THE COMPANY BELIEVES ITS SHARES ARE UNDERVALUED AND THE PURCHASE REPRESENTS A GOOD INVESTMENT OPPORTUNITY DESTEC'S SHARES HAVE TRADED IN A RANGE OF 1350 TO 1925 OVER THE PAST YEAR AND WERE UP 125 CENTS AT 14 IN LATE NEW YORK STOCK EXCHANGE TRADING 9312220178 931222 FRANKLIN QUEST PLANS ACQUISITION SALT LAKE CITY FRANKLIN QUEST CO SAID IT AGREED TO BUY SHIPLEY ASSOCIATES A CONSULTING AND TRAINING FIRM FOR 23 MILLION SHIPLEY A PRIVATELY HELD BOUNTIFUL UTAH COMPANY HAD SALES OF 13 MILLION IN THE FISCAL YEAR ENDED JULY 31 UP 32 FROM YEAREARLIER FIGURES FRANKLIN OPERATES TIMEMANAGEMENT SEMINARS AND SELLS RELATED DAYPLANNER PRODUCTS THE COMPANY REPORTED A 30 INCREASE IN NET INCOME FOR ITS FISCAL FIRST QUARTER ENDED NOV 30 TO 94 MILLION AND A 28 INCREASE IN SALES TO 564 MILLION THE PURCHASE IS EXPECTED TO BE COMPLETED BY FEB 1 1994 9312220177 931222 NATIONAL CITY STOCK PURCHASE CLEVELAND NATIONAL CITY CORP'S BOARD AUTHORIZED THE PURCHASE OF AS MANY AS FIVE MILLION ADDITIONAL SHARES OF THE COMPANY'S COMMON STOCK OUTSTANDING AND UP TO FOUR MILLION DEPOSITARY SHARES OF ITS 8 CUMULATIVE CONVERTIBLE PREFERRED STOCK WITH A COMBINED PURCHASE LIMIT OF 200 MILLION ALL COMMON SHARES PURCHASED WILL BE HELD AS TREASURY SHARES FOR REISSUE IN CONNECTION WITH THE CORPORATION'S STOCKOPTION PLANS AND FOR GENERAL CORPORATE PURPOSES EARLIER THIS YEAR THE BANK HOLDING COMPANY ANNOUNCED A BUYBACK OF SIX MILLION COMMON SHARES WHICH HAS BEEN COMPLETED 9312220176 931222 TEREX CORP PRIVATE PLACEMENT WESTPORT CONN TEREX CORP SAID IT COMPLETED THE PRIVATE PLACEMENT OF 12 MILLION PREFERRED SHARES AT 25 APIECE EACH PREFERRED SHARE IS CONVERTIBLE INTO 225 COMMON SHARES AND IS MANDATORILY REDEEMABLE IN 1999 IN ADDITION WITH EACH PREFERRED SHARE THE PURCHASER RECEIVED A WARRANT TO BUY TEREX COMMON STOCK TEREX MAKES EQUIPMENT FOR THE MINING CONSTRUCTION LOGGING AND OTHER INDUSTRIES AND MAKES FORK LIFT TRUCKS 9312220175 931222 TEXAS JOURNAL A SCARY THOUGHT NEW ADVISERS FOR THE GOVERNOR BY MICHAEL TOTTY GOV ANN RICHARDS WANTS HER OWN CHAMBER OF COMMERCE LAST MONTH SHE INVITED 35 EXECUTIVES OF SOME OF THE STATE'S MOST PROMINENT COMPANIES TO LUNCH AT THE GOVERNOR'S MANSION THE AGENDA CREATION OF A NEW BUSINESS COUNCIL TO ADVISE HER ON CRITICAL STATE ISSUES BOTH PARTIES HAVE MUCH TO GAIN IN THE ALLIANCE FOR THE GOVERNOR IT'S A WAY TO ROUSE BUSINESS SUPPORT FOR POLITICAL BATTLES SUCH AS THE ONE SHE WAGED OVER THE NORTH AMERICAN FREE TRADE AGREEMENT AND FOR THE EXECUTIVES IT'S A WAY TO GO DIRECTLY TO THE GOVERNOR WITH THEIR CONCERNS ON WORKERS' COMP TORT REFORM AND OTHER PET TOPICS TO THE EXTENT WE CAN GET THE GOVERNOR'S EAR I THINK WE CAN HAVE AN IMPACT ON THE BUSINESS CLIMATE IN THE STATE OF TEXAS SAYS KEN LAY CHAIRMAN OF HOUSTON'S ENRON CORP WHO PRESIDED OVER THE FIRST MEETING PLANNERS HOPE THE COUNCIL WILL GROW TO ABOUT 75 MEMBERS REPRESENTING A CROSS SECTION OF LARGE AND SMALL BUSINESSES CHARTER MEMBERS WHO INCLUDE EDWARD WHITACRE CHAIRMAN OF SOUTHWESTERN BELL CORP CHARLES SITTER PRESIDENT OF EXXON CORP AND HAROLD HOOK CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AMERICAN GENERAL CORP ALSO DISCUSSED INCORPORATING THE GROUP AS A NONPROFIT ORGANIZATION AND HIRING AN EXECUTIVE DIRECTOR BUT WHAT WOULD ANY GOVERNMENT ACTION BE WITHOUT CRITICISM IN THIS CASE IT COMES FROM SOME PROFESSIONAL BUSINESS GROUPS WHO SEE THE NEW COUNCIL TREADING ON THEIR TURF IF SHE'S REALLY INTERESTED IN WORKING WITH THE BUSINESS COMMUNITY THERE ARE PLENTY OF ORGANIZATIONS WITHOUT GOING THROUGH ANOTHER GROUP SAYS DANE HARRIS PRESIDENT OF THE TEXAS ASSOCIATION OF BUSINESS THE FACT THAT NONE OF THE EXISTING ORGANIZATIONS WERE CONSULTED IS A LITTLE INCONSISTENT MR HARRIS ALSO SEES A POLITICAL MOTIVE IN ALL THIS AND PERHAPS FOR GOOD REASON ALTHOUGH MEMBERS INSIST THE COUNCIL WILL REMAIN BIPARTISAN AND NONPOLITICAL THE GOVERNOR DOES SAY SHE WILL VISIT THE MEMBERS SEPARATELY ON BEHALF OF HER CAMPAIGN 9312220174 931222 TEXAS JOURNAL ECONOMIC FOCUS CHARITY PUZZLE ECONOMY IS UP BUT GIVING IS DOWN BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL BAH HUMBUG BY MOST ACCOUNTS THE TEXAS ECONOMY IS ON THE UPSWING BUT YOU WOULDN'T KNOW IT TO LOOK AT CHARITABLE CONTRIBUTIONS TO UNITED WAY CAMPAIGNS AROUND THE STATE ACCORDING TO PRELIMINARY FIGURES COLLECTED BY THE UNITED WAY OF TEXAS IN AUSTIN PLEDGES HAVE DECLINED 65 THIS YEAR TO ABOUT 1929 MILLION THE FINAL NUMBERS WILL BE A BIT BETTER SINCE SOME TEXAS CAMPAIGNS REMAIN OPEN AND NOT ALL ORGANIZATIONS HAVE REPORTED UPTODATE FIGURES BUT THE COMPARISON DOESN'T LOOK GOOD LAST YEAR WAS A DISMAL ONE TO BEGIN WITH THANKS TO ECONOMIC UNCERTAINTY THE PRESIDENTIAL ELECTION AND CHARGES OF MISMANAGEMENT AT THE NATIONAL HEADQUARTERS MOREOVER PRELIMINARY STATISTICS SUGGEST THAT NATIONWIDE UNITED WAY DONATIONS HAVE INCREASED 15 THIS YEAR THE NEWS ISN'T ALL BAD IN TEXAS ECONOMIC HOT SPOTS SUCH AS AUSTIN AND SAN ANTONIO AND A NUMBER OF SMALLER TOWNS ARE REPORTING HEALTHY JUMPS IN DONATIONS AND EVEN IN SOME LAYOFFPLAGUED AREAS UNITED WAY OFFICIALS REPORT THAT PEREMPLOYEE PLEDGES HAVE RISEN BUT A SURVEY OF CITIES AND TOWNS SHOWS THAT MANY IF NOT MOST CAMPAIGNS WILL FAIL TO REACH THEIR GOALS OR EVEN TO HIT LAST YEAR'S NUMBERS AND THE REASONS PROVIDE A REVEALING GLIMPSE AT SOME OF THE MAJOR FACTORS THAT ARE DRIVING THE STATE'S ECONOMY HERE'S A CITYBYCITY LOOK HOUSTON THE BIGGEST UNITED WAY DONOR IN TEXAS IS ALSO ONE OF THE SICKEST DOWNSIZING IS GOING ON IN JUST ABOUT EVERY SECTOR OF THE COMMUNITY NOT JUST IN OIL AND GAS SAYS ANNE NEESON VICE PRESIDENT FOR FUND DEVELOPMENT AT THE LOCAL ORGANIZATION THIS YEAR DONOR COMPANIES SHED 22000 JOBS ON TOP OF 25000 IN 1992 OFFICIALS EXPECT DONATIONS WILL SURPASS LAST YEAR'S TOTAL OF 586 MILLION WHEN THE CURRENT CAMPAIGN ENDS JAN 26 BUT IT WON'T REACH THE 1991 TOTAL OF 64 MILLION DALLAS THE DALLAS UNITED WAY DECIDED TO EXTEND ITS CAMPAIGN BEYOND THE PLANNED NOV 4 CLOSING DATE WHEN IT BECAME CLEAR IT WOULDN'T COME ANYWHERE NEAR THE 40 MILLION GOAL TO DATE JUST 364 MILLION HAS BEEN RAISED THE BIGGEST CULPRITS THE DEMISE OF THE SUPERCONDUCTING SUPERCOLLIDER AND ATLANTIC RICHFIELD CO'S DECISION TO MOVE ITS ARCO OIL & GAS HEADQUARTERS FROM DOWNTOWN SAN ANTONIO EVEN CUTBACKS AT NEARBY MILITARY INSTALLATIONS COULDN'T PUT A DAMPER ON THE ALAMO CITY'S FUNDRAISING FEDERAL EMPLOYEE PLEDGES FELL SLIGHTLY THIS YEAR BUT CIVILIANS MORE THAN MADE UP THE DIFFERENCE RESULTING IN A 55 JUMP TO 239 MILLION THE ATMOSPHERE IN OUR COMMUNITY IS MUCH STRONGER THAN IT WAS A YEAR AGO SAYS HOWARD NOLAN PRESIDENT OF THE SAN ANTONIO UNITED WAY ONE BIG BOOST HAS COME FROM SOUTHWESTERN BELL CORP'S CHOICE OF SAN ANTONIO FOR ITS NEW CORPORATE HEADQUARTERS EXECUTIVES WHO RELOCATED HAVE RELATIVELY BIG PAYCHECKS FORT WORTH THIS AREA'S PRIME DONOR LIST READS LIKE A WHO'S WHO OF WHO'S CUTTING JOBS IN AMERICA CARSWELL AIR FORCE BASE LOCKHEED CORP INTERNATIONAL BUSINESS MACHINES CORP GTE CORP THE TARRANT COUNTY CAMPAIGN MANAGED TO BRING IN JUST 212 MILLION THIS YEAR DOWN 63 FROM LAST YEAR AND OFF 103 FROM 1991 AUSTIN THE TOP THREE SOURCES OF FUNDS IBM TEXAS INSTRUMENTS INC AND FEDERAL EMPLOYEES SAW DONATIONS DECLINE THIS YEAR BUT AUSTIN'S UNITED WAY RECOUPED THE LOSSES BY TAPPING NEW OR RAPIDLYGROWING BUSINESSES SUCH AS PHARMACO LSR MOTOROLA INC AND APPLIED MATERIALS INC PLEDGES TOTALED 68 MILLION THIS YEAR UP 57 FROM A YEAR AGO AND SLIGHTLY HIGHER THAN THE 1991 FIGURE OF JUST UNDER 67 MILLION LUBBOCK ALL OF A SUDDEN LUBBOCK LOOKS PRETTY GOOD EXULTS GLENN COCHRAN LOCAL UNITED WAY PRESIDENT THOUGH THIS WEST TEXAS TOWN MISSED OUT ON PAST BOOMS IT ALSO AVOIDED THE SUBSEQUENT BUSTS THE BIGGEST FACTOR IN LUBBOCK'S 11 INCREASE OVER LAST YEAR IS A RECORD COTTON CROP EL PASO THIS BORDER TOWN'S SCHOOL DISTRICTS ARE RETURNING SUBSTANTIALLY WORSE DONATIONS THIS YEAR BECAUSE OF FUNDING PROBLEMS SAYS RICHARD ALVARADO THE LOCAL UNITED WAY PRESIDENT BUT OTHER SECTORS MOST NOTABLY THE BANKS HAVE IMPROVED EL PASO EXPECTS TO SLIGHTLY SURPASS LAST YEAR'S RESULTS BY 4 BY THE TIME THE CAMPAIGN CLOSES NEXT MONTH ALTHOUGH DONATIONS SO FAR THIS YEAR ARE DOWN ABOUT 172 AMARILLO I CAN'T SAY WE'RE BLOWING THE ROOF OFF BUT WE ARE IN SOLID SHAPE ECONOMICALLY SAYS SUSAN GILMORE LOCAL EXECUTIVE DIRECTOR WHO SAW A 76 RISE IN CONTRIBUTIONS THIS YEAR A LOCAL BEEF PACKER SAW A BIG JUMP IN DONATIONS WHILE OUR THREE HOSPITALS HAD A PHENOMENAL INCREASE SHE SAYS ONE SOUR NOTE DOCTORS DONATED LESS BRAZORIA COUNTY BLAME THIS ONE ON THE RUSSIANS SALES OF MAGNESIUM BY THE FORMER SOVIET REPUBLICS HAVE DRIVEN WORLD PRICES DOWN SAYS TOM FOWLER UNITED WAY EXECUTIVE DIRECTOR LEADING TO LAYOFFS OF WORKERS AND OUTSIDE CONTRACTORS AT A LOCAL DOW CHEMICAL CO PLANT THAT EXTRACTS THE MINERAL FROM SEA WATER THE RESULT FLAT DONATIONS 9312220173 931222 LETTERS TO THE EDITOR DOING THE RIGHT THING CREATES BELTWAY JITTERS IN RESPONSE TO YOUR DEC 10 EDITORIAL MARJORIE'S MISDIRECTED MEETING CRITICIZING MY INVOLVEMENT IN AN ENTITLEMENT SUMMIT IN PHILADELPHIA QUESTION WHO WOULD BE MOST THREATENED BY A HIGHLEVEL PUBLIC POLICY CONFERENCE ON ENTITLEMENTS PULLED TOGETHER BY A FRESHMAN WOMAN MEMBER OF CONGRESS WHO HAPPENS TO BE A DEMOCRAT IF YOU ANSWERED THE REPUBLICAN NATIONAL COMMITTEE YOU WOULD BEGIN TO UNDERSTAND THE REALITY BEHIND CHARGES LEVELED AT THE FUTURE OF ENTITLEMENTS CONFERENCE AT BRYN MAWR COLLEGE WHILE THERE ARE MANY PEOPLE INSIDE THE BELTWAY WHO FEEL THREATENED BY THIS CONFERENCE FEW MATCH THE ZEAL CURRENTLY MUSTERED BY THE REPUBLICAN NATIONAL COMMITTEE TO UNDERMINE THIS CONFERENCE WHY BECAUSE IF A FRESHMAN WOMAN CAN PULL THIS TOGETHER AND BEGIN TO BUILD POLITICAL CONSENSUS ON THESE DIFFICULT ISSUES WHAT NEED IS THERE FOR CAREER POLITICIANS WHO HAVE THRIVED UPON GRIDLOCK ALL THESE YEARS IMAGINE A WORLD IN WHICH REPUBLICANS AND DEMOCRATS STARTED TO WORK TOGETHER AROUND A CONFERENCE TABLE TO SOLVE THE PROBLEMS FACING OUR NATION RATHER THAN REMAINING PREOCCUPIED WITH THEIR POLITICAL CAREERS WHAT AN AWFUL WORLD THIS WOULD BE FOR CAREER POLITICIANS THE GREAT IRONY IS THAT ATTACKS ON THE CONFERENCE WERE BASED UPON THE WILD ASSUMPTION THAT I HAVE SOME UNIQUE ABILITY TO TAKE THE MOST POLITICALLY INCENDIARY OF PUBLIC POLICY TOPICS AND TURN THEM INTO MY POLITICAL ADVANTAGE THAT SOMEHOW MY ADDRESSING SOCIAL SECURITY AND MEDICARE IS AN ATTEMPT TO WIN VOTES TO TAKE THIS TO ABSURDITY THOSE THREATENED BY THIS CONFERENCE SUGGEST THAT I HAVE SOLICITED CORPORATE SPONSORS TO FURTHER THIS POLITICAL SCHEME THIS DEFIES LOGIC SOLICIT MONEY FROM CORPORATIONS TO SPEND ON MY BEHALF SO THAT I CAN TELL EVERY VOTER THAT WE HAVE DRAINED THE SOCIAL SECURITY TRUST FUND AND MEDICARE MUST BE MEANSTESTED SINCE WHEN HAS DELIVERING PAINFUL BUT NECESSARY MESSAGES BEEN THE ROAD TO POLITICAL VICTORY SOMEONE GET JIM FLORIO ON THE PHONE I ONLY HOPE THOSE WHO ARE BUYING THIS NOTION OF POLITICAL REALITY TURNED FROM RERUNS OF FANTASY ISLAND TO CSPAN WHEN SEN JOHN DANFORTH A REPUBLICAN SAID SOME IN MY PARTY MAY FEAR THAT A DEMOCRAT MIGHT GET POLITICAL BENEFITS FROM HOLDING THIS CONFERENCE ON ENTITLEMENTS WELL HALLELUJAH WHAT WE NEED IS THE POLITICAL COURAGE TO DO WHAT WE KNOW IS RIGHT 9312220172 931222 INTERNATIONAL JAPAN INDEX SHOWS CONTRACTION TOKYO JAPAN'S INDEX OF LEADING ECONOMIC INDICATORS IN OCTOBER STOOD AT 300 FALLING SHORT OF THE SOCALLED BOOMORBUST THRESHOLD OF 500 FOR THE SECOND MONTH IN A ROW THE ECONOMIC PLANNING AGENCY SAID THE AGENCY CONSIDERS A READING ABOVE 50 AS AUGURING ECONOMIC EXPANSION OVER THE SHORT TERM BUT A LEVEL BELOW 50 AS HERALDING CONTRACTION THE SEPTEMBER LEADING INDEX WAS REVISED BY THE AGENCY FROM THE INITIALLY REPORTED 364 9312220171 931222 WHO'S NEWS ZENECA GROUP PLC ZENECA GROUP PLC LONDON TOM MCKILLOP 50 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THE ZENECA PHARMACEUTICALS UNIT OF THIS BIOSCIENCE COMPANY EFFECTIVE JULY 1 MR MCKILLOP CURRENTLY DEPUTY CHIEF EXECUTIVE OFFICER AND TECHNICAL DIRECTOR OF THE UNIT SUCCEEDS DAVID FRIEND 59 WHO RETIRES NEXT YEAR 9312220170 931222 WHO'S NEWS FIRST TENNESSEE NATIONAL CORP FIRST TENNESSEE NATIONAL CORP MEMPHIS VICKI G ROMAN CORPORATE VICE PRESIDENT AND TREASURER OF COCACOLA ENTERPRISES WAS NAMED A DIRECTOR FILLING A VACANCY CREATED BY THE RETIREMENT OF THE BANK'S PRESIDENT EARLIER THIS YEAR 9312220169 931222 MARKETING AT CENTURY CITY MALL RETAILERS HAVE TO LURE HOLIDAY SHOPPERS WITH SALES GIFTS GIMMICKS BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES FOR JACKIE HARRIS OWNER OF AN OFFBEAT GIFT AND CLOTHING SHOP IN THE UPSCALE CENTURY CITY MALL CHRISTMAS WAS SAVED BY A DOG NAMED BUCK LIKE OTHER SOUTHERN CALIFORNIA RETAILERS MS HARRIS AND HER SMALL CHAIN OF JUMPING DOG STORES HAVE HAD A TOUGH YEAR TWO OF HER THREE AREA OUTLETS CLOSED AND THE THIRD IN THE CENTURY CITY MALL WAS TEETERING ON THE BRINK THEN BUCK THE SHAGGY MUTT ON THE TV SERIES MARRIED WITH CHILDREN HOSTED A CHARITY EVENT AT THE JUMPING DOG PEOPLE CAME SAW AND SHOPPED IF WE HADN'T DONE THAT EVENT MS HARRIS SAYS I'D BE OUT OF BUSINESS A FOURTH NAGGING YEAR OF RECESSION IS FORCING MANY SOUTHERN CALIFORNIA RETAILERS TO MARKETING EXTREMES SHARP CHRISTMAS MARKDOWNS AS WELL AS MORE OFFBEAT COMEONS LIKE THE BUCK EVENT AND WHILE THE 149 RETAIL OUTLETS AT THE CENTURY CITY SHOPPING CENTER ARE HEALTHIER THAN MOST AREA RETAILERS THE 29YEAROLD BEVERLY HILLS COMPLEX IS SURROUNDED BY OFFICE BUILDINGS AND POSH HOMES THEY ALSO HAVE TO COPE WITH HARD TIMES CENTURY CITY'S RETAILERS HAVE HAD TO CONTEND WITH DEEP CUTS IN AEROSPACE JOBS AT NORTHROP CORP HUGHES AIRCRAFT CO AND MCDONNELL DOUGLAS CORP AS WELL AS THE COSTLY WILDFIRES IN THE AREA LINK K SCHWARTZ A 45YEAROLD DIVORCE LAWYER WHO WAS SHOPPING AT CENTURY CITY'S DONNA GRAY CLOTHING BOUTIQUE RECENTLY SAYS WHEN SHE ENTERS A STORE THESE DAYS SHE ASKS HERSELF DO I REALLY WANT TO BUY SOMETHING NOW OR NOT SO CREATIVE MARKETING AND DISCOUNTING ARE NOW MORE IMPORTANT THAN EVER MILLE PETITES FLEURS A CHILDREN'S DESIGNER CLOTHING STORE TAKES FREE PROFESSIONAL PHOTOS OF CHILDREN WEARING THE OUTFITS THEY TRY ON WE THOUGHT ONCE THE PARENTS SAW THE KIDS IN THEM THEY WOULDN'T BE ABLE TO RESIST SAYS LYNN FINK THE STORE'S OWNER THERE ARE ALSO THE TRADITIONAL SALES THIS YEAR FEATURING SHARPER MARKDOWNS IN ADDITION TO HER USE OF THE HOPPING PUPPY A LITTLE CART SHE HAS SET UP ON THE OPPOSITE SIDE OF THE MALL FROM HER JUMPING DOG QUARTERS MS HARRIS WILL OFFER 30 OFF ANY ITEM TO ANY CUSTOMER WHO HAS MADE 10 VISITS TO THE STORE AT DONNA GRAY MS SCHWARTZ HAD BEEN SHOPPING FOR A BUSINESS SUIT SHE WALKED OUT OF THE STORE WITH TWO WHY THE STORE IS GIVING AWAY GIFT CERTIFICATES THIS SEASON 10 OFF ON OTHER PURCHASES FOR EVERY 100 SPENT CENTURY CITY TENANT CRATE & BARREL IS FINDING BUSINESS SLOWER AT ITS LOS ANGELESAREA STORES COMPARED WITH OTHER OUTLETS OF THE CHAIN NATIONALLY SO ITS CENTURY CITY DISPLAY WINDOW NOW SHOWCASES 895 GLASSES ALONGSIDE A 2495 PLATE RACK AND A 1495 HANDBLOWN TURKISH CANDLEHOLDER THE ITEMS ARE AMONG THE LOWEST PRICED IN STOCK A COUPLE YEARS AGO SAYS KATHERINE HALISKI CRATE & BARREL'S STORE MANAGER YOU NEVER WOULD'VE SEEN THE WORD SALE' IN OUR WINDOW RIGHT NOW YOU CAN SEE IT NINE TIMES GORDON SEGAL PRESIDENT OF THE NORTHBROOK ILLBASED COMPANY SAYS RETAILERS EVERYWHERE HAVE TO COPE WITH A PICKIER CONSUMER IN THE '80S PEOPLE DIDN'T CARE WHAT ANYTHING COST HE SAYS IF THEY LIKED IT THEY BOUGHT IT BUT THESE DAYS THE RETAILERS WHO ARE EXECUTING WELL ARE MAKING SURE THE THINGS THAT HAVE VALUE ARE UP FRONT WHERE THE CONSUMER CAN EASILY SEE THEM IN SOUTHERN CALIFORNIA THAT CHALLENGE IS MAGNIFIED THOUGH MR SEGAL SAYS HE'S PLEASED WITH HIS COMPANY'S RESULTS IN THE REGION HE'S OPENED THREE NEW STORES HERE RECENTLY CRATE & BARREL SALES HERE ARE INCREASING AT ABOUT HALF THE NATIONAL RATE LAST YEAR SAYS MS HALISKI THE CENTURY CITY STORE MANAGER SO MANY PEOPLE WALKED INTO CRATE & BARREL ASKING WHAT DO YOU HAVE FOR 20 THAT SHE CONVENED MEETINGS AT WHICH STORE EMPLOYEES LISTED THEIR FAVORITE PRODUCTS IN VARIOUS COST CATEGORIES SHOPPERS APPRECIATE THE QUICK RESPONSES TO BUDGET REQUESTS SHE SAYS THE GIFT CERTIFICATE GIVEAWAY AT DONNA GRAY BEGAN LAST YEAR AS A CHRISTMAS SEASON PROMOTION SAYS JILL DYCK WHO RUNS THE STORE THIS YEAR MS DYCK DECIDED TO DO IT A MONTH EARLIER WE RECOGNIZE IT'S HARDER TO GET CUSTOMERS IN THE STORE THESE DAYS SHE SAYS IN THE OLD DAYS WE WERE SELLING IMAGE BUT WE'VE DEFINITELY CHANGED THE WAY WE DO BUSINESS MS DYCK HAS LEARNED OTHER RECESSION LESSONS IN 1991 THE STORE ADDED INVENTORY AND OFFERED A WIDER VARIETY OF GARMENTS IN HOPES OF PULLING IN MORE CUSTOMERS WHILE THE DISPLAYS LOOKED FABULOUS SHE SAYS SALES DIDN'T RISE ACCORDINGLY OUR CUSTOMERS SURE DID HAVE A LOT OF CHOICES MS DYCK RECALLS BUT COME JANUARY WE SURE DID TAKE A LOT OF MARKDOWNS THE STORE IS RUNNING LEANER NOW WITH BETTER PROFIT MARGINS SHE SAYS DONNA GRAY'S SALE RACKS ARE AT THE BACK OF THE STORE AND MANY STORES IN WEALTHY AREAS LIKE THIS FEAR THE NEGATIVE IMAGE THAT COMES WITH APPEARING TO BE A CUTRATE MARKETER THE STRATEGY AT CENTURY CITY'S TOYS INTERNATIONAL OUTLET IN FACT IS TO REMAIN STUBBORNLY HIGHEND KEEPING INVENTORY LEVELS ROBUST A LOT OF PEOPLE DURING A RECESSION TEND TO CUT BACK OR GO INTO A DEFENSIVE POSITION SAYS GAYLE HOEPNER PRESIDENT OF THE SOUTHERN CALIFORNIA TOY CHAIN BUT AS THEY SAY YOU CAN'T SELL FROM AN EMPTY CART ONE OF THE STORE'S MOST POPULAR TOYS THIS YEAR THE HANDMADE NUTCRACKER DOLL SELLING FOR UP TO 189 OFFICIALS WHO MANAGE THE MALL ITSELF HAVE RESPONDED TO CONTINUED TOUGH TIMES BY REALLOCATING PORTIONS OF THE MALL'S 1 MILLION MARKETING BUDGET THIS YEAR FOR EXAMPLE MARKETING DIRECTOR LINDA FROST USED MONEY FORMERLY DESIGNATED FOR ORGINAL ART IN PRINT ADVERTISING TO BUY SLIDESHOW TIME BEFORE MOVIES AT THE MALL'S 14SCREEN AMC CINEMA THE SLIDES ADVERTISE 50 CENTURY CITY GIFT CERTIFICATES WHICH ARE BIG CHRISTMAS SELLERS ONE OF MS FROST'S CHALLENGES IS KEEPING RETAILERS IN BUSINESS MS HARRIS THE JUMPING DOG OWNER SAYS MALL OFFICIALS HAVE ASKED HER TO SWITCH LOCATIONS THREE TIMES TO MAKE ROOM FOR OTHER TENANTS SHE ALWAYS SAYS YES AND IN EXCHANGE THE MALL HAS BEEN FLEXIBLE WITH HER RENT IN THESE ECONOMIC TIMES I DON'T MIND BEING MOVED AROUND SHE SAYS 9312220168 931222 MARKETING & MEDIA SMITH CORONA TO SELL FURNITURE NEW CANAAN CONN SMITH CORONA CORP SAID IT WILL BEGIN SELLING WORKROOM A HOMEOFFICE FURNITURE COLLECTION THAT WILL BE AVAILABLE AT SUCH RETAILERS AS OFFICEMAX STAPLES AND NOBODY BEATS THE WIZ THE COLLECTION INCLUDES A DESK WITH A MATCHING MOBILE FILE AND PRINTER PEDESTAL TWO CHAIRS A DESK LAMP AND AN ACOUSTICAL SCREEN THE COMPLETE SET WILL SELL FOR ABOUT 1125 SMITH CORONA MARKETS SMALL OFFICE AND HOMEOFFICE PRODUCTS AND SUPPLIES INCLUDING WORD PROCESSORS AND ELECTRONIC TYPEWRITERS 9312220167 931222 FINANCING BUSINESS GENEVA STEEL CO GENEVA STEEL CO VINEYARD UTAH FILED TO OFFER AS MUCH AS 125 MILLION OF SENIOR NOTES DUE 2004 IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION GENEVA SAID PROCEEDS WILL BE USED TO REPAY DEBT FOR CAPITAL SPENDING AND OTHER GENERAL CORPORATE PURPOSES CITICORP SECURITIES INC AND SALOMON BROTHERS INC WILL UNDERWRITE 9312220166 931222 MARKETING & MEDIA REDSTONE'S WIFE FILED FOR DIVORCE BUT DROPPED SUIT BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL PHYLLIS REDSTONE WIFE OF VIACOM INC'S CHAIRMAN AND CONTROLLING SHAREHOLDER SUMNER REDSTONE SUED HER HUSBAND FOR DIVORCE LAST MONTH IN A MASSACHUSETTS COURT BUT WITHDREW THE SUIT THREE WEEKS LATER COURT RECORDS SHOW MRS REDSTONE'S SUIT WAS FILED IN THE MIDST OF THE BITTER TAKEOVER BATTLE BETWEEN VIACOM AND QVC NETWORK INC FOR CONTROL OF PUBLISHING AND ENTERTAINMENT GIANT PARAMOUNT COMMUNCIATIONS INC ALTHOUGH THE DIVORCE SUIT HAS BEEN WITHDRAWN AND THE COURT DOCUMENTS SEALED HER ACTION RAISES QUESTIONS ABOUT WHETHER MR REDSTONE COULD ULTIMATELY LOSE CONTROL OF HIS CABLETV EMPIRE IN A DIVORCE PROCEEDING UNDER MASSACHUSETTS DIVORCE LAW HIS WIFE WOULD BE ENTITLED TO AN EQUITABLE SHARE OF EVERYTHING ACQUIRED IN THEIR MARRIAGE OF MORE THAN 46 YEARS MRS REDSTONE COULDN'T BE REACHED TO COMMENT AND HER ATTORNEY IN THE CASE IRVING HELLMAN OF BOSTON DECLINED TO COMMENT MR REDSTONE AND HIS ATTORNEY IN THE MATTER GEORGE ABRAMS OF BOSTON DIDN'T RESPOND TO MESSAGES IN A STATEMENT VIACOM SAID THERE IS NO DIVORCE PROCEEDING INVOLVING THE REDSTONES AND THEIR MARRIAGE IS ON SOLID GROUND ANY SUGGESTION TO THE CONTRARY IS IRRESPONSIBLE AND MALICIOUS ON NOV 12 MRS REDSTONE SUED MR REDSTONE FOR DIVORCE IN MIDDLESEX COUNTY COURT IN CAMBRIDGE MASS A FEW MILES FROM THEIR PERMANENT RESIDENCE IN NEWTON ACCORDING TO COURT RECORDS ALMOST THREE WEEKS LATER ON NOV 30 SHE WITHDREW THE LAWSUIT AT THE SAME TIME THE COURT GRANTED A REQUEST TO SEAL THE CASE FILE A COURT CLERK SAID SO NO OTHER DETAILS ARE AVAILABLE THE COURT RECORDS SHOW THAT MRS REDSTONE HAD SUED MR REDSTONE FOR DIVORCE AT LEAST ONCE BEFORE IN 1984 BUT LATER WITHDREW THE SUIT ACCORDING TO A PERSON FAMILIAR WITH THE MATTER MRS REDSTONE WAS UNDER PRESSURE TO WITHDRAW THE LEGAL ACTION AT LEAST FOR THE MOMENT VIACOM IS PROPOSING TO PAY FOR 49 OF ITS BID FOR PARAMOUNT WITH VIACOM COMMON AND PREFERRED SHARES THE BID CURRENTLY IS VALUED AT 96 BILLION MR REDSTONE WHOSE WEALTH WAS ESTIMATED BY FORBES MAGAZINE RECENTLY AT 56 BILLION CONTROLS 84 OF VIACOM'S VOTING STOCK AND A 76 ECONOMIC STAKE THROUGH HIS CLOSELY HELD NATIONAL AMUSEMENT INC THEATER CHAIN EARLIER THIS YEAR ANOTHER PROMINENT MASSACHUSETTS BUSINESS EXECUTIVE UNSUCCESSFULLY CHALLENGED A DIVORCE AWARD TO HIS WIFE OF HALF THE STOCK HE OWNED IN THE COMPANY HE FOUNDED THE CASE INVOLVED DATA GENERAL CORP FOUNDER EDSON DECASTRO AND HIS WIFE JEAN WHO WAS AWARDED HALF HIS DATA GENERAL SHARES VALUED AT ABOUT 15 MILLION IN JULY THE MASSACHUSETTS SUPREME COURT UPHELD A LOWERCOURT AWARD AFTER MR DECASTRO APPEALED ALTHOUGH LEGAL EXPERTS COULDN'T COMMENT ON THE REDSTONE ACTION SPECIFICALLY THEY SAID THAT SUCH CASES COULD PROVE TROUBLESOME IN A TAKEOVER SITUATION IN CASES IN WHICH MARITAL ASSETS COULD BE AFFECTED LEGAL EXPERTS SAID A COURT OVERSEEING A DIVORCE CASE COULD INTERVENE IN A BUSINESS TRANSACTION TO PROTECT THE RIGHTS OF THE SPOUSE A COURT MAY ENJOIN A PARTY FROM RISKING A MARITAL ASSET TO THE DETRIMENT OF THE OTHER PARTY SAID HELEN BREZINSKY WHO PRACTICES FAMILY LAW AT THE NEW YORK FIRM ROSENMAN & COLIN SUCH A STEP BY THE COURT WOULD COME ONLY IF THE SPOUSE IN MOST PAST CASES THE WIFE RAISED A CONCERN ABOUT THE IMPACT OF THE TRANSACTION ON THE MARITAL ASSETS SHE SAID MS BREZINSKY SAID THAT DIVORCE COURTS IN THE PAST HAVE INTERVENED IN TRANSACTIONS THAT HAD AN IMPACT ON MARITAL ASSETS SHE CITED AN UNREPORTED DIVORCE CASE IN NEW YORK INVOLVING A REALESTATE TRANSACTION THAT THE WIFE SOUGHT TO BLOCK IN THAT INSTANCE THE COURT ALLOWED THE TRANSACTION TO PROCEED AFTER THE PARTIES WORKED OUT AN ARRANGEMENT THAT PROTECTED THE ASSETS MS BREZINSKY SAID BUT OTHER EXPERTS IN FAMILY LAW SAID DIVORCE CASES INVOLVING THE SUPERRICH RARELY DETERIORATE TO THAT POINT ULTIMATELY THE LAWYERS GET TOGETHER AND SAY WE HAVE TO SETTLE SAID LYNNE GOLDBIKIN CHAIRWOMANELECT OF THE AMERICAN BAR ASSOCIATION'S FAMILYLAW SECTION NOBODY WANTS TO ROLL THE DICE IN A COURT CASE WILLIAM M BULKELEY CONTRIBUTED TO THIS ARTICLE 9312220165 931222 INTERNATIONAL IN CHINA'S CITIES GROWTH TAKES ITS TOLL RESIDENTS ARE FORCIBLY MOVED TO OUTLYING AREAS BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL MEILONG CHINA ACRES AND ACRES OF HOUSING DEVELOPMENTS IN THIS COUNTY OUTSIDE SHANGHAI ARE STARK EVIDENCE OF CHINA'S LATEST EXPERIMENT WITH WESTERN THINGS THE SUBURB THERE'S NOT MUCH TRAFFIC IN MEILONG KIDS CAN PLAY ON THE STREETS BENEATH CONCRETE FACADES FRESHLY SPRAYED IN PALE SHADES OF ORANGE AND BLUE DESPITE THE DUST SWIRLING ABOVE UNPAVED ROADS THE AIR IS A BIT CLEANER THAN THE CITY'S BUT MANY MEILONG RESIDENTS SEE THEIR NEW BEDROOM COMMUNITY LESS AS A WELCOME RETREAT FROM TIGHTPACKED SHANGHAI THAN AS A FORM OF FORCED EXILE MEILONG AND OTHER SUCH SATELLITE CITIES WERE CREATED BY DIKTAT TO MAKE WAY FOR OFFICE BUILDINGS HOTELS AND LUXURY APARTMENTS IN CITIES IN A COUNTRY WITH NO CAR CULTURE AND LITTLE OF THE UPWARDLY MOBILE URGE TO FLEE URBAN LIFE THESE SUBURBS ARE LIKELY TO GO DOWN AS THE ACHIEVEMENTS OF COERCIVE POPULATION CONTROL RATHER THAN AS THE BENEFITS OF A VIBRANT ECONOMY WE'RE HERE BECAUSE THE GOVERNMENT WANTS SHANGHAI TO BECOME A CITY FOR THE RICH AND THE POWERFUL PEOPLE SAID MR XIAO A MEILONG SHOPKEEPER WHO ASKED THAT HIS FULL NAME BE WITHHELD THAT'S WHY THEY MOVE PEOPLE LIKE ME TO LIVE WITH THE COUNTRY BUMPKINS LIKE CHINA'S HIGH INFLATION RATE WHICH HAS REACHED 25 IN MANY URBAN AREAS FORCED REMOVALS ARE A SIGN THAT RAPID ECONOMIC GROWTH CAN BE A MIXED BLESSING FOR MANY CHINESE IN SHANGHAI A MULTIBILLION DOLLAR PROGRAM OF URBAN RENOVATION WILL USHER IN A NEW SUBWAY ELEVATED HIGHWAYS AND SCORES OF MODERN BUILDINGS BY THE END OF THE DECADE BUT IT WILL USHER OUT HUNDREDS OF THOUSANDS OF THE CITY'S 13 MILLION RESIDENTS THOUGH CITY OFFICIALS DECLINE TO GIVE A MORE PRECISE ESTIMATE RESIDENTS IN THE PATH OF GROWTH HAVE VIRTUALLY NO OPTIONS FOR STAYING IN THE CITY THE VAST MAJORITY OF CHINESE HAVE NO EQUITY IN THEIR HOMES OR CONTROL OVER THEM EVEN IF THEY HAVE LIVED THERE FOR GENERATIONS THE LIMITED MARKET FOR REAL ESTATE CATERS TO WEALTHY OVERSEAS INVESTORS THE IMPACT OF FORCED REMOVALS SHOULD NOT BE UNDERESTIMATED FOR CHINESE RELIGION IDEOLOGY AND RACE DO NOT DEFINE PEOPLE SO MUCH AS GEOGRAPHY FOREIGN EXECUTIVES TELL STORIES OF TALENTED ENGINEERS WHO REFUSE TO LEAVE THEIR HOME CITIES TO WORK FOR DOUBLE THE PAY IN RURAL FACTORIES CONVERSIONS FROM SHANGHAINESE TO MEILONGESE DON'T COME EASILY I USED TO LIVE IN THE OLD FRENCH CONCESSION IN SHANGHAI THAT PART OF THE CITY HAS SO MUCH HISTORY SAID ONE YOUNG MAN IN MEILONG NOW MY FRIENDS SAY WHERE'S MEILONG' THEY JOKE THAT I'VE LEFT THE CITY TO BECOME A PEASANT NOT ALL OBEY ORDERS IN THE WESTERN CITY OF XIAN LAST MONTH DISSIDENTS HELPED ORGANIZE A GROUP OF RESIDENTS WHO RESISTED EXPULSION FROM THEIR HOMES A RARE POLITICAL PROTEST TWO OF THOSE DISSIDENTS WERE LATER ARRESTED IN BEIJING ACCORDING TO HONG KONG PRESS REPORTS IN SHANGHAI CITY AUTHORITIES GIVE DISPLACED TENANTS NEW HOUSING IN SPECIALLY CREATED SUBURBS USUALLY AT LOW RENTS BUT THAT IS NOT OFTEN REGARDED AS FAIR COMPENSATION FOR CITY DWELLERS WHO RESENT THE LOSS OF CONTROL OVER THEIR LIVES RESIDENTS ON A BLOCK OF LAND IN CENTRAL SHANGHAI LATE LAST MONTH DISCOVERED THEIR FATE IN THE LOCAL NEWSPAPER AN ARTICLE DESCRIBED A 120 MILLION DEVELOPMENT PLAN BY CHINESEMALAYSIAN TYCOON ROBERT KUOK WHOSE KERRY GROUP AND LOCAL PARTNERS WILL BUILD A SHANGRILA HOTEL A RESIDENTIAL TOWER AN OFFICE TOWER AND A MALL WHERE THEIR STONE HOMES NOW STAND I SAW THE ARTICLE IN THE NEWSPAPER AND TOLD MY FRIENDS THESE ARE OUR HOMES' SAID RETIREE ZHANG WANGHUA THEY SAID WE'D BE MOVED OUT PAST THE AIRPORT I THINK THAT'S VERY FAR AWAY SHE SAID OTHER RESIDENTS SAID THEY HAD YET TO RECEIVE ANY OFFICIAL NOTICE THOUGH THEY HAD HEARD RUMORS FOR WEEKS THAT A HONG KONG BUSINESSMAN NOW OWNED THEIR PROPERTY WE'LL BE GONE BEFORE CHINESE NEW YEAR IN EARLY FEBRUARY LAMENTED ONE ANOTHER GROUP OF RESIDENTS WHO LIVE IN A WARREN OF NARROW LANES BEHIND SHANGHAI'S MAIN COMMERCIAL DISTRICT CAME HOME FROM WORK ONE DAY IN AUGUST TO FIND A NOTICE STAPLED TO THE COMMUNITY BULLETIN BOARD IT INSTRUCTED THEM THAT NO ONE NEW WAS TO MOVE INTO ANY APARTMENTS LOCALS TOOK IT AS THE FIRST STEP IN THEIR EVICTION WE ALL PANICKED SAID A TEACHER WHOSE RELATIVES HAVE LIVED IN THE AREA SINCE THE TURN OF THE CENTURY WE GOT TOGETHER AND SIGNED A PETITION IT'S THE FIRST TIME ANYONE DARED TO PROTEST ANYTHING AROUND HERE THEY HAVE YET TO RECEIVE ANY REPLY FROM THE GOVERNMENT ONLY AFTER THEY ARRANGE EVERYTHING WILL THEY NOTIFY US THE TEACHER SAID MANY FOREIGN PROJECTS IN CHINESE CITIES RESULT IN THE REMOVAL OF RESIDENTS THE PRACTICE HAS BECOME SO COMMON THAT IN SHANGHAI REMOVAL COSTS ARE FREQUENTLY FACTORED INTO THE OFFERING PRICE OF LAND IN OTHER CASES REMOVAL COSTS ARE NEGOTIATED BETWEEN THE DEVELOPER AND THE CITY GOVERNMENT AFTER THE LAND PACT IS REACHED A REALESTATE EXPERT WITH ARTHUR ANDERSEN BUSINESS CONSULTING CO IN SHANGHAI IVAN CHAN SAID FOREIGN INVESTORS CAN EXPECT THAT RELOCATION COSTS WILL CONSUME ABOUT 30 OF A TOTAL DEVELOPMENT OUTLAY HE SAID THE LAND ITSELF ON AVERAGE COSTS ABOUT 5 OF THE TOTAL THE REST CONSISTS OF CONSTRUCTION EXPENSES FOREIGN DEVELOPERS RARELY ORGANIZE RESETTLEMENT THEMSELVES EXCEPT WHEN INVESTORS BALK AT THE CITY'S HIGH PRICE TAG TO DO THE WORK IT'S A MISTAKE TO TRY TO DO IT YOURSELF SAID SIMON TAM THE SHANGHAI REPRESENTATIVE FOR KERRY GROUP YOU PAY A LUMP SUM AND THE GOVERNMENT DOES IT ALL FOR YOU VERY SMOOTH CITY OFFICIALS FOR THEIR PART SAY DENSE POPULATION AND DEVELOPMENT ARE INCOMPATIBLE WHEN YOU HAVE SO MANY PEOPLE LIVING IN JUST ONE PLACE YOU HAVE NO CHOICE BUT TO MOVE THEM SAID SHEN ZHENGCHAO A REALESTATE BUREAU OFFICIAL HE SAID RESETTLEMENT AREAS SUCH AS MEILONG WILL LATER ATTRACT INVESTMENT OF THEIR OWN THEN PEOPLE WILL BE VERY HAPPY TO BE THERE FOR INSTANCE HE SAID SHANGHAI'S NEW SUBWAY SYSTEM WILL CONNECT MEILONG TO THE CENTER OF THE CITY BY THE END OF 1994 REDUCING A 90MINUTE COMMUTE TO ABOUT 30 MINUTES MR SHEN ACKNOWLEDGED HOWEVER THAT MANY OTHER RESETTLEMENT ZONES ARE MUCH FARTHER AFIELD MR TAM THE DEVELOPER'S REPRESENTATIVE SAID THE PROCESS IS GOOD FOR THE CITY WE MOSTLY ARE TALKING ABOUT SLUM AREAS LIKE SQUATTERS THE PEOPLE ARE VERY HAPPY TO MOVE OUT MRS ZHANG WHOSE HOME WILL SOON BECOME MR KUOK'S SHANGRILA HAS A DIFFERENT PERSPECTIVE ABSOLUTELY NO ONE WANTS TO LEAVE SHE SAID THEY'RE BUILDING THE GUEST HOUSE FOR GOVERNMENT OFFICIALS TO COME TO SING AND DRINK WHEN THEY FINALLY BUILD SOMETHING FOR THE MASSES THEN I'LL SUPPORT THEM 9312220164 931222 WHO'S NEWS RYDER SYSTEM INC RYDER SYSTEM INC MIAMI RANDY E WEST 44 YEARS OLD A VICE PRESIDENT IN THE COMMERCIAL LEASING AND SERVICES UNIT OF THIS TRANSPORTATION SERVICES CONCERN WAS NAMED SENIOR VICE PRESIDENT AND GENERAL MANAGER OF THE INTERNATIONAL DIVISION A NEW POSITION 9312220163 931222 WHO'S NEWS FIRST UNION CORP FIRST UNION CORP CHARLOTTE NC WILLIAM H GOODWIN JR 53 YEARS OLD CHAIRMAN OF CCA INDUSTRIES INC AND RANDOLPH N REYNOLDS 52 EXECUTIVE VICE PRESIDENT INTERNATIONAL REYNOLDS METALS CO WERE ELECTED DIRECTORS OF THIS BANK HOLDING COMPANY EXPANDING THE BOARD TO 27 MEMBERS 9312220162 931222 INTERNATIONAL INDIAN PANEL CITES 4 FOREIGN BANKS IN STOCK SCANDAL BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI A PARLIAMENTARY COMMITTEE INQUIRING INTO LAST YEAR'S 14 BILLION SECURITIES SCANDAL IN INDIA HAS CALLED FOR LEGAL ACTION AGAINST FOUR FOREIGN BANKS AND HAS CRITICIZED THE FINANCE MINISTRY FOR NOT PREVENTING THE FRAUD THE 30MEMBER COMMITTEE IN A 344PAGE REPORT ALSO ASKS THE RESERVE BANK OF INDIA TO CONSIDER WHETHER THE BANKS SHOULD HAVE THEIR LICENSES SUSPENDED AND BE PREVENTED FROM REMITTING PROFITS MADE THROUGH IRREGULAR SECURITIES TRANSACTIONS AND OTHER MALPRACTICES THE REPORT SAYS BANKAMERICA CORP'S BANK OF AMERICA CITICORP'S CITIBANK STANDARD CHARTERED PLC'S STANDARD CHARTERED BANK AND ANZ BANKING GROUP'S ANZ GRINDLAYS WERE DEEPLY INVOLVED IN THE IRREGULARITIES IN SECURITIES TRANSACTIONS AND THAT THEY ALL FAILED TO FOLLOW PROCEDURES OF INTERNAL CONTROL LAST YEAR'S SECURITIES SCANDAL WAS A RESULT OF THE ILLEGAL DIVERSION OF BANK FUNDS INTO THE STOCK MARKET USING FORGED OR FICTITIOUS RECEIPTS FOR SECURITIES THIS INJECTION OF MONEY SET THE MARKET ON AN UNPRECEDENTED BULL RUN THAT PUSHED UP BOMBAY'S SENSITIVE INDEX FROM JUST UNDER 3000 POINTS AT THE END OF FEBRUARY 1992 TO MORE THAN 4500 POINTS BY MIDAPRIL BEFORE IT CRASHED WHEN THE SCANDAL WAS EXPOSED THE BANKS HAVE ARGUED THEIR INNOCENCE SAYING THEY WERE MERELY FOLLOWING MARKET PRACTICE I DON'T KNOW ON WHAT GROUNDS THE COMMITTEE CAN SUGGEST THAT ACTION BE TAKEN SOLELY AGAINST FOREIGN BANKS WHEN THERE IS AMPLE EVIDENCE IN THE TOTALITY OF THE REPORT THAT INDIAN BANKS WERE EQUALLY INVOLVED IN VIOLATIONS OR IRREGULARITIES OF ONE SORT OR OTHER SAID BARRY NORTHROP STANDARD CHARTERED'S SPECIAL REPRESENTATIVE FOR INDIA A GRINDLAYS SPOKESMAN SAID THAT THE BANK WAS STUDYING THE REPORT AND THAT IT WAS TOO EARLY TO COMMENT WITH THEIR CHIEF EXECUTIVES OUT OF THE COUNTRY BANK OF AMERICA AND CITIBANK DECLINED TO COMMENT THE GOVERNMENT IS EXAMINING THE REPORT TO SEE WHAT ACTION SHOULD BE TAKEN 9312220161 931222 NOVA CORP OF ALBERTA AGREES TO BUY 365 STAKE IN HOUSTON GAS MARKETER CALGARY ALBERTA NOVA CORP OF ALBERTA AGREED TO PAY 170 MILLION FOR A STAKE IN A CLOSELY HELD HOUSTON GAS MARKETER THE MOVE IS A BID BY THE CANADIAN GASPIPELINE AND CHEMICALS COMPANY TO GRAB A PIECE OF EMERGING NORTH AMERICAN AND INTERNATIONAL MARKETS FOR GASMARKETING SERVICES NOVA SAID IT AGREED TO BUY THE 365 GENERAL PARTNERSHIP INTEREST IN NATURAL GAS CLEARINGHOUSE HELD BY LG&E ENERGY CORP OF LOUISVILLE KY CLEARINGHOUSE'S OTHER OWNERS ARE BRITISH GAS PLC WITH A 365 INTEREST AND CLEARINGHOUSE'S MANAGEMENT WITH 27 ALREADY ONE OF THE BIGGEST GASMARKETING COMPANIES IN THE US PROVIDING MARKETING INFRASTRUCTURE AND RELATED GASMARKETING SERVICES FOR ROUGHLY 4 BILLION CUBIC FEET OF NATURAL GAS A DAY CLEARINGHOUSE IS SEEKING A BIGGER ROLE IN BOTH THE NORTH AMERICAN NATURALGAS SECTOR AND IN OTHER REGIONAL GAS MARKETS WORLDWIDE CLEARINGHOUSE'S PRESIDENT AND CHIEF EXECUTIVE OFFICER CL CHUCK WATSON SAID HE IS LOOKING TO NOVA AND BRITISH GAS TO BACK CLEARINGHOUSE'S GROWTH PLANS WE NOW HAVE TWO PARTNERS THAT ARE CLEARLY FOCUSED ON OUR GROWTH AND ON THEIRS IN THEIR OWN COUNTRIES AND AROUND THE WORLD THIS GIVES US MORE OPPORTUNITIES FOR GROWTH THAN WE HAVE HAD BEFORE HE SAID MR WATSON SAID CLEARINGHOUSE IS POSITIONING ITSELF TO TAKE ADVANTAGE OF OPPORTUNITIES ARISING FROM A RECENT US REGULATORY ORDER THAT IS CHANGING THE STRUCTURE OF THE GASTRANSPORTATION AND MARKETING INDUSTRY US INTERSTATE PIPELINE COMPANIES ORDERED TO SEPARATE THEIR GASTRANSPORTATION SERVICES FROM THEIR GASMARKETING SERVICES ARE EXPECTED TO SHED 3 BILLION TO 4 BILLION OF ASSETS OVER THE NEXT THREE TO FIVE YEARS CLEARINGHOUSE WILL TRY TO BUY SOME OF THESE ASSETS AND COULD SPEND 500 MILLION TO 750 MILLION ON ACQUISITIONS OVER THE NEXT TWO YEARS MR WATSON SAID BUT CLEARINGHOUSE ALSO IS LOOKING FURTHER AFIELD FOR GROWTH OPPORTUNITIES MR WATSON SAID PARTICULARLY TO CANADA EUROPE AND SOUTH AMERICA WHERE NOVA AND BRITISH GAS HAVE EXTENSIVE OPERATIONS HE SAID THE COMPANY PLANS TO ESTABLISH PARTNERSHIP VENTURES WITH NOVA IN CANADA AND LATER WITH BRITISH GAS IN EUROPE TO DEVELOP NATURALGAS SERVICES MATCHING THOSE THE COMPANY ALREADY PROVIDES IN THE US 9312220160 931222 CD YIELDS SHIFT LITTLE IN WEEKLY BANK SURVEY NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE LITTLE CHANGED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS SLID TO 273 FROM 274 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS REMAINED AT 446 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS EASED TO 323 FROM 328 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD SLIPPED TO 456 FROM 462 THE SURVEY SAID ON LARGEDENOMINATION OR JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE EDGED DOWNWARD TO 280 FROM 282 ON FIVEYEAR JUMBOS THE AVERAGE CREPT UP TO 466 FROM 465 ACCORDING TO BANXQUOTE 9312220159 931222 ECONOMY HIGHER TAXES UNLIKELY TO HURT RECOVERY ECONOMISTS SEE MINOR IMPACT ON CONSUMER SPENDING BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL JUST HOW MUCH WILL THE CLINTON TAX INCREASE ON THE MOST WELLOFF AMERICANS HURT THE ECONOMIC RECOVERY ALTHOUGH THE TAX RISE WILL TAKE SOME ZEST OUT OF CONSUMER SPENDING MAINSTREAM ECONOMISTS SAY IT POSES NO SERIOUS THREAT TO THE RECOVERY THEY SAY THAT UNLIKE FORMER PRESIDENT BUSH'S TAX INCREASES WHICH HIT A SLOWING ECONOMY PRESIDENT CLINTON'S TAX RISE COMES DURING AN EXPANSION THE ADDED TAXES ON THE WEALTHY THEY SAY WILL DAMP THINGS BUT AT A TIME WHEN THE ECONOMY CAN ABSORB THE SETBACK A DISSENTING VIEW COMES FROM SUPPLYSIDE ECONOMISTS WHO ARGUE THE TAX ON THE RICH WILL LEAD TO LOWER INVESTMENT AND PRODUCTIVITY TRENDS THAT OVER TIME WOULD MAKE THE US LESS COMPETITIVE THE TAX RISE DIDN'T PASS CONGRESS UNTIL AUGUST BUT THE INCOMETAX INCREASES ARE RETROACTIVE TO JAN 1 1993 THE INCREASES APPLY TO COUPLES WITH TAXABLE INCOME OVER 140000 AFTER DEDUCTIONS AND INDIVIDUALS WITH INCOME OVER 115000 TAKING ACCOUNT OF ALL THE INCOME AND OTHER TAX INCREASES THE CONGRESSIONAL BUDGET OFFICE ESTIMATES THAT FAMILIES MAKING MORE THAN 200000 ANNUALLY WILL BE SOCKED WITH AN AVERAGE OF 174 MORE IN TAXES OR 24000 THE FEAR IS THAT WHEN WEALTHY PEOPLE SIT DOWN TO DO THEIR TAXES NEXT YEAR THEY WILL BE SHOCKED TO FIND OUT HOW MUCH THEY OWE AND SUDDENLY STOP SPENDING HURTING A RECOVERY THAT'S FINALLY GAINING MOMENTUM THE APRIL TAX PAYMENT DATE MAY HAVE A SHOCK EFFECT WARNS KURT KARL CHIEF ECONOMIST FOR WEFA GROUP IN SUBURBAN PHILADELPHIA MANHATTAN AND BEVERLY HILLS ARE TWO AREAS WHERE A LARGE GROUP OF TAXPAYERS WILL BE HIT BUT ECONOMISTS DON'T THINK THE ECONOMY WILL BE SET BACK FAR FOR ONE THING THE NUMBER OF PEOPLE HIT BY THE TAX INCREASE IS QUITE SMALL ONLY 14 MILLION TAXPAYERS THAT'S ABOUT 12 ARE AFFECTED BY THE INCREASE ON THE WEALTHY SO WHILE THOSE WRITING THE CHECKS MAY FEEL A BURDEN THE NATION AS A WHOLE WILL BE RELATIVELY UNSCATHED FURTHERMORE THE TAX RISE EXPECTED TO RAISE ABOUT 20 BILLION ANNUALLY TO HELP LOWER THE BUDGET DEFICIT IS EQUAL TO ONLY 04 OF ALL PERSONAL INCOME MEANWHILE THE EXPECTED DROP IN THE DEFICIT HAS HELPED LOWER INTEREST RATES A CHANGE THAT LEAVES MANY PEOPLE INCLUDING THE WEALTHY WITH MORE MONEY TO SPEND OR INVEST BESIDES THE WEALTHY TEND TO DIP INTO SAVINGS TO HELP PAY FOR A HIGHER TAX BILL UNLIKE THE LESS AFFLUENT WHO IMMEDIATELY CUT SPENDING AND SLOW THE ECONOMY DONALD RATAJCZAK HEAD OF ECONOMIC FORECASTING AT GEORGIA STATE UNIVERSITY ESTIMATES THAT WELLOFF PEOPLE WILL TAP THEIR SAVINGS TO PAY FOR HALF OF THE ADDED TAXES PAYING FOR THE REST BY CUTTING PURCHASES YOU COULDN'T PICK A BETTER GROUP TO PUT THIS TAX ON MR RATAJCZAK SAYS THEY PROBABLY DIDN'T VOTE FOR CLINTON AND THERE ARE NOT ENOUGH OF THEM TO SEVERELY CRIMP THE EXPANSION AND PRESIDENT CLINTON IN AN EFFORT TO LIMIT THE NEGATIVE EFFECTS OF THE TAX HAS GIVEN AMERICANS THREE YEARS TO PAY FOR THE INCREASE INTERESTFREE MR RATAJCZAK'S FORECAST FOR GROWTH IN THE FIRSTQUARTER IS A 32 ANNUAL RATE AND FOR THE SECONDQUARTER A 21 RATE HE ESTIMATES THAT IF THERE WERE NO NEW TAX ON THE WEALTHY GROWTH WOULD BE AT A 35 RATE IN THE FIRSTQUARTER AND 30 IN THE SECOND FOR THE YEAR HE PREDICTS THAT THE ADDED TAXES WILL BRING GROWTH TO 28 DOWN FROM 32 ASSUMING ALL OTHER FACTORS INCLUDING THE LOWER INTEREST RATES WERE UNCHANGED MOST ECONOMISTS ESTIMATE THAT THE TAX WILL DO THE MOST DAMAGE IN THE FIRST HALF OF NEXT YEAR AS WEALTHY CONSUMERS CUT SPENDING TO HELP CUSHION THE BLOW OF A HIGHER TAX BILL THE ECONOMY WILL ONLY BE AFFECTED IN A NOTICEABLE WAY IN THE FIRST HALF OF THE YEAR SAYS MR KARL WHO ESTIMATES THAT THE ECONOMY WILL GROW AT AN ANNUAL RATE OF 27 FOR THE FIRSTQUARTER RATHER THAN 30 IF THERE WERE NO TAX INCREASE BUT SUPPLYSIDERS SEE THINGS DIFFERENTLY THIS IS GOING TO HAVE A CORROSIVE CORROSIVE EFFECT ON THE ECONOMY SAYS LAWRENCE KUDLOW CHIEF ECONOMIST AT BEAR STEARNS & CO IN NEW YORK RICH PEOPLE HAVE A HIGH PROPENSITY FOR SAVINGS AND INVESTMENT AND MR KUDLOW SAYS THAT WILL BE CRIMPED BY THE NEW TAX THE RESULT HE ARGUES WILL BE LOWER PRODUCTIVITY MR KUDLOW ESTIMATES THAT THE POTENTIAL LONGTERM GROWTH RATE OF THE ECONOMY WILL BE LOWERED TO 225 ANNUALLY FROM 27 THE TAX INCREASE IS ALSO COMING AS ASIA AND LATIN AMERICA ARE LOWERING THEIR TAX RATES AND SO WILL BE BECOMING MORE COMPETITIVE WITH AMERICA MR KUDLOW SAYS THERE HAVE BEEN SOME OBVIOUS BENEFITS FROM THE TAX BOOST LOWER INTEREST RATES HAVE PROMPTED THOUSANDS OF PEOPLE TO REFINANCE THEIR HOMES CUT MORTGAGE PAYMENTS AND USE THE EXTRA MONEY TO BUY CARS FURNITURE AND APPLIANCES IN THAT SENSE THE TAX INCREASE IS A WASH FOR THE NATION AS A WHOLE SAYS ROGER BRINNER DIRECTOR OF US FORECASTING FOR DATA RESOURCES INC IN LEXINGTON MASS 9312220158 931222 WHO'S NEWS BELL ATLANTIC CORP BELL ATLANTIC CORP PHILADELPHIA WILLIAM M FREEMAN 41 YEARS OLD WAS ELECTED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF C&P TELEPHONE CO A WASHINGTONBASED UNIT OF THIS TELECOMMUNICATIONS CONCERN EFFECTIVE JAN 1 HE SUCCEEDS DELANO E LEWIS WHO IS RETIRING MR FREEMAN CURRENTLY IS EXECUTIVE DIRECTOR OF EXTERNAL AFFAIRS AT C&P TELEPHONE 9312220157 931222 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED 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 COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD