CHICAGO NORTHERN TRUST CORP NAMED WILLIAM A OSBORN PRESIDENT AND CHIEF OPERATING OFFICER MR OSBORN WAS PREVIOUSLY SENIOR EXECUTIVE VICE PRESIDENT IN CHARGE OF COMMERCIAL BANKING AND CORPORATE MANAGEMENT SERVICES MR OSBORN 46 YEARS OLD AND A 23YEAR VETERAN WITH THE BANK HOLDING COMPANY SUCCEEDS DAVID W FOX IN BOTH POSTS THE 62YEAROLD MR FOX REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER NORTHERN TRUST ALSO NAMED TWO OFFICERS TO THE NEW POSITION OF VICE CHAIRMEN BARRY G HASTINGS 46 AND PREVIOUSLY SENIOR EXECUTIVE VICE PRESIDENT WILL CONTINUE TO HEAD THE COMPANY'S PERSONAL FINANCIAL SERVICES BUSINESS UNIT JOHN S SUTFIN 54YEAROLD FORMER SENIOR EXECUTIVE VICE PRESIDENT IN CHARGE OF THE COMPANY'S CORPORATE FINANCIAL SERVICES BUSINESS WAS ALSO NAMED A VICE CHAIRMAN HIS DUTIES ALSO WILL REMAIN THE SAME ALL THREE OFFICIALS WERE NAMED DIRECTORS BOOSTING BOARD MEMBERSHIP AT THE 167 BILLIONASSET BANKING CONCERN TO 16 9312220154 931222 INTERNATIONAL JAPAN UNVEILS RULES DESIGNED TO AID MARKETS A WALL STREET JOURNAL ROUNDUP TOKYO JAPAN UNVEILED DEREGULATORY MEASURES AIMED AT RESUSCITATING THE NATION'S AILING SECURITIES MARKETS BUT ANALYSTS SAY THE LIST OF STEPS WON'T PROVIDE A QUICK FIX TO FLOUNDERING JAPANESE STOCK PRICES THE FINANCE MINISTRY ANNOUNCED IT WAS READY TO MOVE AHEAD WITH A SERIES OF EARLIER PROPOSALS INCLUDING A LIFT ON JAPAN'S THREEYEAR BAN ON NEW STOCK OFFERINGS IN JAPAN THE MINISTRY ALSO SAID IT WILL EASE RESTRICTIONS ON CORPORATIONS OFFERING BONDS IN FOREIGN MARKETS THAT CARRY OPTIONS TO BUY THE COMPANY'S STOCK THE MINISTRY FAILED HOWEVER TO ANNOUNCE SPECIFIC DATES BUT OBSERVERS AND ANALYSTS SAID THE MEASURES AREN'T LIKELY TO MOVE JAPAN'S STOCK MARKET UPWARD ANYTIME SOON FIRST OF ALL INVESTORS IN JAPANESE SECURITIES HAVE LONG ANTICIPATED SUCH MOVES SECOND A REAL RECOVERY IN THE NATION'S FLAGGING SHARE PRICES BESET BY PLUNGING CORPORATE EARNINGS IS UNLIKELY TO TAKE PLACE UNTIL CORPORATIONS RESTRUCTURE AND BECOME MORE PROFITABLE SAYS MINEKO SASAKISMITH SENIOR ECONOMIST AT MORGAN STANLEY JAPAN LTD THE NIKKEI 225STOCK INDEX FELL 8881 POINTS TO 1731543 TUESDAY AFTER SKIDDING 64767 POINTS MONDAY IN ITS STEEPEST FALL OF THE YEAR THE LATEST ACTIONS MARK PROGRESS IN THE SLOW PATH OF FINANCIALMARKET LIBERALIZATION ON WHICH JAPAN EMBARKED IN THE EARLY 1980S ANALYSTS SAID EVERY LITTLE BIT HELPS SAYS MARSHALL GITTLER A FIXEDINCOME STRATEGIST AT MERRILL LYNCH JAPAN INC ADDING THAT IT IS IMPORTANT THAT JAPAN CAME OUT WITH THIS WHILE THE GOVERNMENT IS IN TURMOIL REFERRING TO HOW THE SEVENPARTY RULING COALITION IS STRUGGLING TO CHART ECONOMIC POLICY REGARDING NEW SHARE ISSUES THE FINANCE MINISTRY SAID IT WOULD ALLOW THEM FOR PROMISING COMPANIES THAT CAN MEET CERTAIN CONDITIONS COMPANIES WOULD QUALIFY FOR INSTANCE IF THEY HAVE RETURNONEQUITY RATIOS OF ABOUT 10 COMPARED WITH AN AVERAGE FOR JAPANESE COMPANIES AROUND 3 PLEDGE TO INCREASE DIVIDEND PAYMENTS BY 20 FOR A CERTAIN PERIOD PROMISE TO LIMIT TO UNDER 10 THE RATIO OF CONVERTIBLE BONDS AND EQUITYPURCHASE WARRANT BONDS TO SHARES OUTSTANDING TO PREVENT CONVERSION OF SUCH BONDS FROM DILUTING SHARE VALUE A FINANCE MINISTRY OFFICIAL SAID HE THINKS ABOUT 30 JAPANESE COMPANIES CURRENTLY MEET THESE CONDITIONS BUT REFUSED TO SPECULATE WHETHER OR WHEN THEY MIGHT ISSUE NEW SHARES CRAIG CHUDLER ASSISTANT DIRECTOR OF UBS SECURITIES LTD SAYS THE ELIGIBLE COMPANIES PROBABLY INCLUDE CASH COWS SUCH AS SEGA ENTERPRISES LTD AND NINTENDO CO THE VIDEOGAME COMPANIES 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 9312220153 931222 BUSINESS & RACE BY LEON E WYNTER LAWRENCE OTIS GRAHAM A BLACK FORMER WALL STREET LAWYER WHO LAST YEAR POSED AS A BUSBOY TO EXPOSE COUNTRYCLUB RACISM HAS FOLLOWED UP WITH A BOOK THE BEST COMPANIES FOR MINORITIES PUBLISHED BY PENGUIN BOOKS MR GRAHAM WHO LEFT THE LAW FIRM WEIL GOTSHAL & MANGES EARLIER THIS YEAR SET OUT TO RECOGNIZE THE 100 BEST COMPANIES AMONG THE FORTUNE 1000 WITH THE GOAL OF GUIDING MINORITY JOBSEEKERS WHILE ENCOURAGING FIRMS TO DO BETTER BUT HE SAYS HE FOUND ONLY 85 WORTH CITING BASED ON THEIR RECORDS OF HIRING RETAINING AND PROMOTING MINORITIES AMONG OTHER STATISTICS THE BOOK REPORTS THE SHARE OF MINORITIES IN EACH COMPANY'S MANAGEMENT POOL LEVI STRAUSS & CO WITH 36 AND TURNER BROADCASTING SYSTEM INC AT 26 ARE HIGHEST OTHERS EXCEEDING 15 INCLUDE ALLSTATE INSURANCE CO A UNIT OF ALLSTATE CORP AMERICAN TELEPHONE & TELEGRAPH CO AND FEDERAL EXPRESS CORP AT THE OTHER END OF THE SCALE CHAMPION INTERNATIONAL AND BURGER KING CORP A UNIT OF GRAND METROPOLITAN PLC EACH FILL FEWER THAN 5 OF MANAGERS' SLOTS WITH MINORITIES ONLY ONE ACCOUNTING FIRM ERNST & YOUNG IS CITED AS IS ONE ADVERTISING SHOP LEO BURNETT CO MR GRAHAM SAYS HE LISTED THEM TO INCLUDE AT LEAST ONE FIRM FROM INDUSTRIES WHERE NO ONE IS DOING A PHENOMENAL JOB MR GRAHAM ADDED THAT SOME FIRMS INCLUDING ADOLPH COORS CO AND CORNING INC MADE THE LIST DESPITE STATISTICALLY MEDIOCRE MINORITYEMPLOYMENT RECORDS IF THEY SUPPORTED MINORITY CAUSES HAD STRONG DIVERSITY PROGRAMS OR HAD BEEN PRAISED BY MINORITY EXECUTIVES IN RESEARCHING HIS BOOK THE HARVARDTRAINED LAWYER WENT UNDERCOVER AT A GREENWICH CONN COUNTRY CLUB TO FIND OUT THE ATTITUDES THAT KEPT MINORITY EXECUTIVES OUT OF THESE CLUBS HE CHRONICLED HIS EXPERIENCE IN AN ARTICLE IN NEW YORK MAGAZINE IN SEPTEMBER 1992 MR GRAHAM SAYS COMPARED TO THE COUNTRYCLUB WORLD CORPORATIONS ARE AHEAD BY LEAPS AND BOUNDS THE MILTON ACADEMY OUTSIDE BOSTON AN ELITE BOARDING SCHOOL THAT HAS HAD GREAT SUCCESS RECRUITING MINORITY STUDENTS FROM POOR FAMILIES HAS A NEW TARGET THE MINORITY MIDDLE CLASS NATIONALLY MINORITY ENROLLMENT AT BOARDING SCHOOLS ROSE FROM 11 IN 1982 TO 24 IN 1993 OR 9982 MINORITY STUDENTS OF 41593 TOTAL ENROLLMENT ACCORDING TO THE NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS MILTON MIRRORS THESE STATISTICS BUT WHILE 75 OF ITS WHITE STUDENTS ARE FROM MIDDLE TO UPPERINCOME HOMES 95 OF ITS MINORITY STUDENTS ARE WORKING CLASS OR POOR IN AN EFFORT TO BRING IN MANY MORE MIDDLECLASS MINORITY STUDENTS HEADMASTER EDWIN P FREDIE THIS FALL BEGAN A SERIES OF MEETINGS IN MAJOR CITIES TO MARKET MILTON TO BETTERHEELED PARENTS ESPECIALLY PROSPERING ENTREPRENEURS WHOM HE FOUND BY CONTACTING BLACK ENTERPRISE AND HISPANIC BUSINESS MAGAZINES MR FREDIE SAYS AFFLUENT BLACK PARENTS OFTEN WORRY THEIR CHILDREN WILL BE OSTRACIZED OR MARGINALIZED BY BLUEBLOOD WHITES AT A BOARDING SCHOOL PARENTS FROM POOR COMMUNITIES WHOSE CHILDREN HAVE FEWER OPPORTUNITIES SEEM TO BE LESS CONCERNED ABOUT THE ISSUE HE SAYS IN ADDITION THERE'S AN ATTITUDE AMONG SOME BLACKS THAT SAYS YOU DON'T SEND YOUR KIDS AWAY FROM HOME UNLESS THEY'RE IN TROUBLE SAYS MR FREDIE WHO IS BLACK TO REASSURE THEM HE NOTES THAT THE NUMBER OF MINORITY BOARDINGSCHOOL ADMINISTRATORS HAS ALMOST DOUBLED SINCE 1988 TO 214 OR 32 EVERYONE AT THE SCHOOL WILL BENEFIT IF THE EFFORT SUCCEEDS MR FREDIE SAYS BECAUSE WITHOUT THE MINORITY MIDDLE CLASS OUR STUDENTS GET A SKEWED IMPRESSION OF WHO BLACKS AND HISPANICS REALLY ARE COMPANIES SHOULD ACTIVELY RECRUIT MINORITIES FOR TOP EXECUTIVE POSTS EVEN WHEN THERE ARE NO OPENINGS SAYS SEARCH FIRM WESLEY BROWN & BARTLE SOME 85 OF CHIEF EXECUTIVES SURVEYED BY THE NEW YORK FIRM SAY THEY'RE COMMITTED TO HIRING HIGHLEVEL MINORITIES BUT 62 REPORT A TOUGH TIME FINDING SUCH CANDIDATES WHEN SEARCHING TO FILL AN OPENING SAYS RECRUITER WESLEY PORIOTIS DIVERSITY HASN'T GOT A CHANCE ONCE A POSITION IS OPEN MR PORIOTIS SAYS BECAUSE THE EMPLOYER ISN'T LIKELY TO MAKE THE EXTRA EFFORT TO SEEK OUT THE RIGHT MINORITY CANDIDATE UNDER THE STRESS AND ANGST OF A FORMAL SEARCH TO IMPROVE THE ODDS MR PORIOTIS TRACKS MINORITY CANDIDATES FOR CLIENTS BEFORE JOBS OPEN AND BRINGS THE CANDIDATES AND EMPLOYERS TOGETHER IN INFORMAL MEETINGS FOR BOTH SIDES IT'S LIKE SHOP 'TIL YOU DROP WITHOUT THE PRESSURE TO BUY OR SELL MR PORIOTIS SAYS WHENEVER YOU'RE RECRUITING THE MORE IMMEDIATE YOUR NEED THE GREATER PRESSURE YOU'RE UNDER AND THE MORE IT LIMITS THE EXTENT OF YOUR SEARCH SAYS GERALD DEPALMA SENIOR VICE PRESIDENT FOR HUMAN RESOURCES AT SCHIEFFELIN & SOMERSET CO A NEW YORK BEVERAGE MARKETER MR DEPALMA SAYS MR PORIOTIS'S APPROACH HAS HELPED HIM RECRUIT MINORITY MANAGERS BECAUSE WHEN HE HAS AN OPENING I ALREADY HAVE SOMEONE WHO'S BEEN TRACKED THE FEDERAL COMMUNICATIONS COMMISSION IS BEING PETITIONED BY A COALITION OF 800 BLACKOWNED BUSINESSES IN WASHINGTON DC TO BLOCK THE SALE OF A RADIO STATION POPULAR WITH AFRICANAMERICANS THE AFRICANAMERICAN BUSINESS ASSOCIATION WANTS TO STOP THE SALE OF WPGCFM OWNED BY COOK INLET RADIO PARTNERS TO INFINITY BROADCASTING BECAUSE ANOTHER INFINITY STATION CARRIES THE PROVOCATIVE AND NOT PARTICULARLY RACIALLY SENSITIVE HOWARD STERN SHOW THE DETROIT BRANCH OF THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE IS DISTRIBUTING THE NAACP BUYER'S GUIDE A LIST OF SEVERAL HUNDRED SOUTHEASTERN MICHIGAN FIRMS DESERVING PATRONAGE BECAUSE OF EMPLOYMENT AND SOCIAL PRACTICES SAYS THE REV WENDELL ANTHONY PRESIDENT OF THE CHAPTER THE NATION'S LARGEST 9312220152 931222 TREASURY PLANS SALE OF 26 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO RAISE 173 BILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 26 BILLION IN SHORTTERM BILLS TO REDEEM 2427 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON MARCH 31 AND JUNE 30 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794J70 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794L44 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9312220151 931222 WHO'S NEWS SEALED AIR CORP SEALED AIR CORP SADDLE BROOK NJ LAWRENCE R CODEY 49 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF PUBLIC SERVICE ELECTRIC & GAS CO A PUBLIC UTILITY AND DAVID FREEMAN 49 PRESIDENT AND CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF LOCTITE CORP A SPECIALTY CHEMICAL COMPANY WERE ELECTED DIRECTORS OF THIS PACKAGINGMATERIALS PRODUCER INCREASING THE BOARD'S SIZE TO NINE 9312220150 931222 ENTERPRISE MIXING THE RIGHT INGREDIENTS FOR SUCCESS IS A CHALLENGE RECORD NUMBER OF NEW YORK RESTAURANTS OPEN DESPITE HIGH FAILURE RATE BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EATERIES AHNELL AND MAIN STREET HAVE COOKED UP COMPLETELY DIFFERENT RECIPES FOR SUCCESS SINCE OPENING THEIR DOORS TO MANHATTAN DINERS EARLIER THIS YEAR AHNELL IS A LOWLIT 80SEAT RESTAURANT IN THE HIP SOHO NEIGHBORHOOD PATRONS INCLUDING ACTORS AL PACINO AND ROBERT DENIRO PAY 25 FOR A SERVING OF VEAL AND SIP RARE ITALIAN WINE THAT COSTS AS MUCH AS 300 A BOTTLE BY CONTRAST MAIN STREET ATTRACTS BUDGETCONSCIOUS FAMILIES AND YOUNG PROFESSIONALS TO ITS UPPER WEST SIDE LOCATION IN AN AIRY GLASSCOVERED ATRIUM THAT SEATS 220 PEOPLE SHARE HEAPING PLATES OF HOMEY FARE SUCH AS RIBS CHICKEN POT PIE MACARONI AND CHEESE AND MEAT LOAF A RECORD NUMBER OF DINING ESTABLISHMENTS OPENED HERE THIS YEAR ACCORDING TO THE 1994 ZAGAT SURVEY OF NEW YORK CITY RESTAURANTS ZAGAT COUNTED 170 SIGNIFICANT NEWCOMERS THE HIGHEST NUMBER SINCE THE ANNUAL SURVEY BEGAN IN 1982 BUT NEW NEW YORK RESTAURATEURS LIKE THEIR COUNTERPARTS IN OTHER CITIES FACE A GRIM NATIONAL REALITY WITHIN FIVE YEARS THREEFOURTHS WILL FAIL AUTHORITIES SAY SOME WILL FIND THEMSELVES LOCKED INTO LEASES THEY CAN'T AFFORD EVEN WHEN EVERY TABLE IS FULL OTHERS WILL UNDERESTIMATE OPERATING COSTS MISJUDGE MARKET TASTES OR NEVER MASTER THE SUBTLE COMPLEXITY OF FOOD PREPARATION AND SERVICE OTHER NEW OWNERS WILL MISTAKENLY THINK THAT RUNNING A RESTAURANT WILL BE AS FUN AS COOKING FOR FRIENDS AT HOME AND BE WOEFULLY UNPREPARED FOR THE GRIND OF 15HOUR WORKDAYS THIS IS CLEARLY ONE OF THE RISKIER BUSINESSES TO PUT YOUR MONEY INTO WARNS TOM KELLY A RESTAURANTMANAGEMENT EXPERT AT CORNELL UNIVERSITY'S SCHOOL OF HOTEL ADMINISTRATION THE BIG APPLE RESTAURANT MARKET SEEMS ESPECIALLY RISKY AT THE MOMENT ZAGAT IDENTIFIED 68 SIGNIFICANT CLOSINGS IN NEW YORK IN 1993 A HIGHER NUMBER THAN AT ANY TIME DURING THE RECENT RECESSION A THIRD OF THE CASUALTIES HAD BEEN IN BUSINESS FOR LESS THAN TWO YEARS IT'S A TOUGHER ENVIRONMENT BECAUSE THERE ARE MORE GOOD PLACES TO EAT SAYS TIM ZAGAT COPUBLISHER OF THE SURVEY THE FOUNDERS OF BOTH AHNELL AND MAIN STREET ARE BETTING THAT THEY HAVE THE RIGHT INGREDIENTS TO MAKE IT IN ONE OF NEW YORK'S MOST BRUTAL BUSINESSES GIOVANNI SANTANIELLO AND HIS WIFE CATHERINE AHNELL BEGAN PLANNING THEIR FIRST RESTAURANT TWO YEARS AGO MR SANTANIELLO A 33YEAROLD NEW YORK NATIVE HAD COOWNED A BAR AND THREE BENETTON CLOTHING STORES MS AHNELL A 28YEAROLD NATIVE OF SWEDEN PREVIOUSLY HAD MODELED IN THE US AND EUROPE THE COUPLE SAY THEY RELIED MORE ON INTUITION THAN MARKET RESEARCH TO DEVELOP THEIR PLANS AMBIENCE DECISIONS REFLECTED MS AHNELL'S HIGHFASHION AESTHETICS AND MR SANTANIELLO'S RECOLLECTIONS OF YOUTHFUL SUMMERS SPENT AT A RESTAURANT NEAR NAPLES THAT HIS GRANDFATHER BEGAN AS A PASTRY SHOP IN 1919 THE COUPLE LOOKED FOR A LOCATION ON THEIR OWN FOR A YEAR PARTLY BECAUSE THEY WANTED TO AVOID A REALESTATE BROKER'S FEE THEY CHOSE A SPOT CLOSE TO DOWNTOWN FRIENDS WHILE THE PAIR ALWAYS HAD FAVORED SERVING ITALIAN CUISINE THEY SAY THEY DIDN'T FINISH THE MENU UNTIL ABOUT A MONTH BEFORE THEIR OPENING LAST MARCH WHEN THEY HIRED THEIR SICILIAN CHEF ROSARIO PATTI THE COUPLE SAY THEY DECIDED AGAINST TAKING PARTNERS IN ORDER TO MAINTAIN SUCH CREATIVE FREEDOM BUT THAT ALSO MEANT WE HAD TO DO A LOT OF THE WORK OURSELVES MR SANTANIELLO SAYS THEY DID MOST OF THE SITE RENOVATION ENLISTING HELP FROM RELATIVES RATHER THAN PAY A CONSULTANT 44000 TO EQUIP THEIR KITCHEN THE COUPLE SAY THEY SPENT THREE WEEKS SHOPPING ON THEIR OWN AND KEPT THEIR TOTAL EQUIPMENT BILL TO 19000 THAT WAS ONE OF THE FEW TIMES THEY SPENT LESS THAN EXPECTED HOWEVER THEIR INVESTMENT ULTIMATELY GREW TO 275000 100000 MORE THAN THEY HAD PLANNED MS AHNELL SAYS THEY DIPPED DEEPER INTO THEIR SAVINGS AMONG THE UNEXPECTED EXPENSES EXTRA FORKS AND KNIVES ON OPENING NIGHT THEY SERVED 167 DINNERS AND NEARLY RAN OUT OF SILVERWARE IN THIS BUSINESS ABOUT 60 OF THE TIME YOU'RE RUNNING ON TOTAL INSTINCT MR SANTANIELLO SAYS NEVERTHELESS HE PREDICTS FIRSTYEAR SALES OF 25 MILLION STEVEN SCHER 34 AND JEFFREY KADISH 32 WERE MORE METHODICAL ABOUT OPENING MAIN STREET THEIR MANHATTAN RESTAURANT BUT THEIR VENTURE ALSO EXPERIENCED UNFORESEEN TROUBLES THE MEN GREW UP TOGETHER IN SPRING VALLEY A NEW YORK SUBURB AND FOR YEARS HAD CASUALLY DISCUSSED THE IDEA OF OPENING AN EATERY THEY FINALLY ACTED ON THE IDEA IN JANUARY 1992 WHEN MR SCHER AN ATTORNEY TIRED OF WORKING FOR A LARGE NEW YORK LAW FIRM MR KADISH EQUIPPED WITH A RESTAURANTMANAGEMENT DEGREE ALREADY HAD MANAGED EIGHT OTHER RESTAURANTS MR SCHER OCCASIONALLY HAD EATEN AT ITALIAN RESTAURANTS WHERE DINERS SHARED HUGE PLATES OF PASTA HE AND MR KADISH AGREED THAT AN AMERICAN VERSION SEEMED CERTAIN TO APPEAL TO PEOPLE WHO WANTED INEXPENSIVE HEARTY FARE BUT LACKED TIME TO COOK IT THEMSELVES HELPED BY A RESTAURANT CONSULTANT THEY DEVELOPED A BUSINESS PLAN TO RAISE FINANCING THROUGH A LIMITED PARTNERSHIP THE MEN ALSO SOUGHT A SITE ALREADY EQUIPPED AS A RESTAURANT BY JULY 1992 THEY HAD FOUND ONE NEGOTIATED A LEASE AND LINED UP ROUGHLY 500000 IN TENTATIVE COMMITMENTS FROM INVESTORS THEY FIGURED THE RESTAURANT WOULD OPEN IN SIX WEEKS AND QUIT THEIR JOBS THEN THEIR LEASE AGREEMENT COLLAPSED THE WOULDBE RESTAURATEURS SPENT FOUR MORE MONTHS HUNTING FOR ANOTHER SITE BUT THE NEW LOCATION A FORMER FURNITURE STORE WAS BIGGER THAN THEY HAD ORIGINALLY PLANNED AND NEEDED RENOVATION THE COMBINATION INCREASED THEIR PROJECTED STARTUP COSTS BY A THIRD TO 800000 TO COPE THE MEN WRANGLED LEASE CONCESSIONS FROM THEIR NEW LANDLORD THEY ALSO PERSUADED THEIR CONSTRUCTION CONTRACTOR AND KITCHENEQUIPMENT SUPPLIER TO BE PAID PARTLY IN PARTNERSHIP UNITS MESSRS SCHER AND KADISH HIRED PAUL ZWEBEN A GRADUATE OF THE PRESTIGIOUS CULINARY INSTITUTE OF AMERICA AND OPENED MAIN STREET LAST MAY THE FOUNDERS SAY THEY EXPECT TO RETURN UP TO HALF OF THEIR INVESTORS' 750000 BY THE END OF THIS YEAR ROUGHLY SIX MONTHS AHEAD OF PROJECTIONS THE RESTAURATEURS DECLINE TO DISCLOSE REVENUE BUT SAY BUSINESS IS SO GOOD THAT THEY ARE PLANNING A SECOND MAIN STREET FOR BOSTON OR WASHINGTON LATE NEXT YEAR DESPITE THEIR SUCCESS SO FAR MR KADISH REMAINS CAUTIOUS ABOUT THE FUTURE A VIEW CLEARLY WARRANTED BY THE FAILURE RATE AMONG THE RESTAURANT INDUSTRY'S NEWCOMERS HE NOTES OUR SECOND YEAR WILL PROVE WHETHER WE HAVE STAYING POWER 9312220149 931222 FINANCING BUSINESS USX CORP USX CORP PITTSBURGH REGISTERED A SHELF OFFERING OF AS MUCH AS 850 MILLION OF SECURITIES WITH THE SECURITIES AND EXCHANGE COMMISSION THE SECURITIES INCLUDE DEBT AND PREFERRED SHARES AS WELL AS USXMARATHON GROUP COMMON STOCK USXUS STEEL GROUP COMMON STOCK AND USXDELHI GROUP COMMON STOCK USX SAID PROCEEDS WILL BE USED FOR GENERAL PURPOSES REFUNDING LONGTERM DEBT OUTSTANDING AND OTHER FINANCIAL OBLIGATIONS INTEREST RATE MANAGEMENT AND LEVELING OF DEBT MATURITY SCHEDULES 9312220148 931222 WHO'S NEWS SEARS ROEBUCK & CO SEARS ROEBUCK & CO CHICAGO WARREN FLICK 48 YEARS OLD FORMERLY VICE PRESIDENT AND GENERAL MERCHANDISE MANAGER OF MEN'S AND CHILDREN'S APPAREL FAMILY FOOTWEAR AND HOME FURNISHINGS FOR SEARS MERCHANDISE GROUP WAS NAMED TO THE NEW POST OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS RETAILER'S SEARS MEXICO UNIT JACK GUZE 50 FORMERLY DIVISIONAL VICE PRESIDENT OF FAMILY FOOTWEAR AT SEARS MERCHANDISE WAS NAMED GROUP VICE PRESIDENT OF THE MEN'S APPAREL CHILDREN'S APPAREL AND FAMILY FOOTWEAR DEPARTMENTS AT SEARS MERCHANDISE 9312220147 931222 HOME HOLDINGS PLACES NOTES NEW YORK HOME HOLDINGS INC SAID IT PLACED 280 MILLION OF SENIOR NOTES DUE 1998 AND 2003 COMPLETING A MAJOR RECAPITALIZATION LAST WEEK THE PROPERTY AND CASUALTY INSURANCE COMPANY SOLD 75 MILLION SHARES IN AN INITIAL PUBLIC OFFERING DOWN FROM A PREVIOUSLY PLANNED 129 MILLION SHARES AS A RESULT HOME HOLDINGS' PARENT TRYGGHANSA SPP HOLDING AB OF SWEDEN INCREASED THE DEBT ISSUE TO 280 MILLION FROM 100 MILLION THE INITIAL PUBLIC OFFERING RAISED 1275 MILLION TRYGGHANSA ALSO EXCHANGED 163 MILLION OF EXISTING DEBT FOR EQUITY HOME HOLDINGS SAID THE RECAPITALIZATION SHOULD REDUCE INTEREST EXPENSES ELIMINATE PREFERRED STOCK DIVIDENDS EXTEND THE MATURITY OF A PORTION OF THE DEBT AND ENHANCE LIQUIDITY 9312220146 931222 WHO'S NEWS GIBSON GREETINGS INC GIBSON GREETINGS INC CINCINNATI WILLIAM L FLAHERTY 45 YEARS OLD FORMERLY VICE PRESIDENT AND CORPORATE TREASURER OF FMR CORP BOSTON PARENT COMPANY OF FIDELITY INVESTMENTS GROUP WAS NAMED VICE PRESIDENTFINANCE AND CHIEF FINANCIAL OFFICER OF THIS DESIGNER AND MAKER OF GREETING CARDS WRAPPING PAPER AND OTHER RELATED PRODUCTS THE APPOINTMENT IS EFFECTIVE IMMEDIATELY HE SUCCEEDS WARD A CAVANAUGH 64 WHO WILL RETIRE EARLY IN 1994 MR CAVANAUGH WILL HELP WITH THE TRANSITION UNTIL HIS RETIREMENT A SPOKESMAN SAID 9312220145 931222 FINANCING BUSINESS EASTMAN KODAK CO EASTMAN KODAK CO ROCHESTER NY THE PHOTOGRAPHY HEALTHCARE AND CHEMICAL CONCERN SAID IT ADJUSTED THE CONVERSION PRICE OF ITS 6 3/8 CONVERTIBLE DEBENTURES DUE 2001 AND THE RATE FOR ITS LIQUIDYIELD OPTION NOTES A MOVE SPURRED BY THE DISTRIBUTION OF SHARES FROM ITS EASTMAN CHEMICAL CO SPINOFF THE COMPANY SAID THE CONVERSION PRICE OF THE DEBENTURES HAS BEEN ADJUSTED TO 4152 A KODAK COMMON SHARE FROM 5067 A SHARE THE CONVERSION RATE OF KODAK'S LIQUIDYIELD OPTION NOTES HAS BEEN ADJUSTED TO 6944 KODAK COMMON SHARES PER NOTE FROM 5622 SHARES KODAK'S BOARD HAS DECLARED A DISTRIBUTION TO ITS SHAREOWNERS OF ONE EASTMAN CHEMICAL CO SHARE FOR EVERY FOUR KODAK SHARES HELD 9312220144 931222 TECHNOLOGY SMITHKLINE SELECTS ABBOTT LABORATORIES TO MARKET SIX DRUGS ABBOTT PARK ILL SMITHKLINE BEECHAM PHARMACEUTICALS CO HAS AGREED TO MAKE ABBOTT LABORATORIES THE EXCLUSIVE MARKETER OF SEVERAL SMITHKLINE HOSPITAL INJECTABLE ANTIBIOTICS UNDER THE AGREEMENT BEGINNING IN 1994 ABBOTT WILL MARKET SMITHKLINE'S INJECTABLE VIAL FORMULATIONS OF SIX OLDER ANTIBIOTICS IN THE CEPHALOSPORIN AND PENICILLIN CLASSES TERMS OF THE AGREEMENT WEREN'T DISCLOSED SMITHKLINE BEECHAM PHARMACEUTICALS IS A UNIT OF LONDONBASED SMITHKLINE BEECHAM PLC THE ARRANGEMENT IS THE MOST RECENT EXAMPLE OF GROWING COOPERATION AMONG DRUG COMPANIES TO MARKET EACH OTHER'S PRODUCTS A TREND EXPECTED TO ACCELERATE BECAUSE OF THE RAPIDLY CHANGING PHARMACEUTICAL MARKETPLACE IN MOST CASES A DRUG COMPANY SEEKS TO TAKE ADVANTAGE OF ANOTHER'S STRENGTH IN A PARTICULAR MARKET FOR EXAMPLE GLAXO HOLDINGS PLC AND WELLCOME PLC THIS YEAR DECIDED TO SELL OVERTHECOUNTER VERSIONS OF CERTAIN PRODUCTS THROUGH WARNERLAMBERT CO RATHER THAN TRYING TO DO IT THEMSELVES TO TAKE ADVANTAGE OF WARNERLAMBERT'S CONSUMER MARKETING AND DISTRIBUTION EXPERTISE BESIDES TAKING ADVANTAGE OF ABBOTT'S STRENGTH IN THE HOSPITALPHARMACY MARKET SMITHKLINE'S MOVE ALSO FREES UP MARKETING AND SALES RESOURCES FOR NEW PRODUCTS A SMITHKLINE SPOKESWOMAN SAID ABBOTT GAINS A BROADER PRODUCT LINE WHICH BOLSTERS ITS COMPETITIVE POSITION WITH BIG HOSPITAL AND MANAGEDCARE BUYERS 9312220143 931222 WHO'S NEWS JOHNSON & HIGGINS JOHNSON & HIGGINS NEW YORK THIS CLOSELY HELD INSURANCE BROKER ELECTED NINE SENIOR EXECUTIVES AS MANAGING PRINCIPALS WITH OWNERSHIP STAKES IN THE COMPANY FERNAND BARUCH JR 43 YEARS OLD BRANCH MANAGER RICHMOND CRAIG N CLEMENTS 47 MANAGER ACCOUNTMANAGEMENT DEPARTMENT LOS ANGELES DARBY D DURYEA 43 MARINE PRACTICE LEADER NEW YORK GEORGE J KADRI 63 SENIOR VICE PRESIDENT NEW YORK JAMES B MEATHE 36 BRANCH MANAGER CLEVELAND FRED L PACKER 53 MANAGER NATIONAL CASUALTY OFFICE NEW YORK THOMAS N PAPPAS 51 MANAGER NATIONAL SALES & MARKETING PHILADELPHIA HERBERT R SELANDER JR 48 MANAGER ACCOUNTMANAGEMENT DEPARTMENT NEW YORK AND BROOKE N WILLIAMS 49 BRANCH MANAGER PARSIPPANY NJ 9312220142 931222 FINANCING BUSINESS REYNOLDS METALS CO REYNOLDS METALS CO RICHMOND VA SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF NINE MILLION SHARES OF CONVERTIBLE PREFERRED STOCK PROCEEDS EXPECTED TO BE APPROXIMATELY 422 MILLION WILL BE USED FOR REPAYMENT OF SHORTTERM DEBT AND GENERAL CORPORATE PURPOSES WHICH MAY INCLUDE CAPITAL EXPENDITURES AND STRATEGIC EXPANSION OF THE COMPANY'S CORE BUSINESSES IN CANS PACKAGING AND WHEELS MERRILL LYNCH AND CS FIRST BOSTON INC ARE UNDERWRITERS 9312220141 931222 CFTC CLEARS SYSTEM FOR BANKING SETTLING AT CHICAGO EXCHANGES WASHINGTON THE COMMODITY FUTURES TRADING COMMISSION APPROVED A COMMON BANKING AND SETTLEMENTPROCESSING SYSTEM FOR THE CHICAGO MERCANTILE EXCHANGE AND THE CHICAGO BOARD OF TRADE THE SYSTEM WHICH IS SCHEDULED TO BE IN PLACE BY AUGUST WILL ALLOW FIRMS THAT DO BUSINESS AT BOTH EXCHANGES TO SETTLE TRADES WITH A SINGLE TRANSACTION ABOUT 60 CLEARING FIRMS ARE MEMBERS OF BOTH THE MERC AND THE BOARD OF TRADE COMMON BANKING AND SETTLEMENT IS ANOTHER STEP THAT WILL HELP MANAGE SYSTEMIC RISK IN THE MARKETS TO THE BENEFIT OF ALL PARTICIPANTS IN OUR INDUSTRY MERC PRESIDENT WILLIAM BRODSKY SAID IN A STATEMENT SEPARATELY THE CFTC APPROVED FUTURES CONTRACTS AND OPTIONS ON A PLYWOODPRICE INDEX TO BE TRADED AT THE CBOT THE CFTC ALSO VOTED TO ALLOW CLEARING FIRMS KNOWN AS FUTURES COMMISSION MERCHANTS TO GRANT CERTAIN OFFEXCHANGE TRADE OPTIONS THE ACTION CREATED AN ADDITIONAL EXCEPTION TO THE CFTC'S RULE PROHIBITING FCMS FROM ASSUMING ANY FINANCIAL RESPONSIBILITY FOR THE FULFILLMENT OF COMMODITY OPTIONS IN OTHER ACTION RELATED TO FCMS THE CFTC PROPOSED A RULE THAT WOULD EXPAND PROTECTIONS FOR CUSTOMERS OF BANKRUPT FCMS THAT HOLD CROSSMARGIN ACCOUNTS WHICH ARE PORTFOLIOS OF VARIOUS FUTURES AND OPTIONS CONTRACTS PACKAGED TO HEDGE RISKS THE PROPOSAL CALLS FOR BANKRUPTCY TRUSTEES TO USE AN FCM'S ASSETS TO PAY OFF CUSTOMERS WITHOUT CROSSMARGIN ACCOUNTS BEFORE PAYING OFF CUSTOMERS WITH CROSSMARGIN ACCOUNTS 9312220140 931222 FINANCING BUSINESS NEWPARK RESOURCES INC NEWPARK RESOURCES INC NEW ORLEANS SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A SECONDARY OFFERING OF 700000 COMMON SHARES NEWPARK HAS 98 MILLION COMMON SHARES OUTSTANDING INCLUDING THE 700000 TO BE SOLD THE PROVIDER OF EVIRONMENTAL AND CONSTRUCTION SERVICE TO THE OIL AND GAS INDUSTRY SAID THE SHARES WILL BE SOLD BY A HOLDER WHO ACQUIRED THEM LAST MONTH IN EXCHANGE FOR CANCELING 54 MILLION OF DEBT THE COMPANY OWED THE SHAREHOLDER NEWPARK SAID IT WON'T RECEIVE ANY PART OF THE PROCEEDS OF THE SALE ROBINSONHUMPHREY CO WILL BE A BROKER FOR THE SELLING STOCKHOLDER 9312220139 931222 INTERNATIONAL BEIJING SETS NEW CEILINGS ON FOOD PRICES THIS ARTICLE WAS PREPARED BY JULIA LEUNG IN HONG KONG AND JOSEPH KAHN IN SHANGHAI THE CITY OF BEIJING IS SLAPPING CONTROLS BACK ON RETAIL PRICES OF RICE PORK AND OTHER STAPLE FOODS IN A BID TO TAME THE RECENT PRICE SURGE THAT MIGHT DERAIL CHINA'S AMBITIOUS REFORM PLANS THE CAPITAL ANNOUNCED PRICE CEILINGS ON 27 FOOD ITEMS ACCORDING TO TUESDAY'S CHINA DAILY IT'S UNCLEAR WHETHER SUCH CONTROLS WOULD BE IMPOSED NATIONWIDE OFFICIALS IN SHANGHAI AND OTHER CITIES HAVE TOLD SHOPKEEPERS NOT TO RAISE PRICES ALTHOUGH THAT ORDER APPARENTLY IS BEING DEFIED IN RECENT WEEKS URBAN RESIDENTS HAVE SNAPPED UP RICE COOKING OIL AND OTHER FOODS IN ANTICIPATION OF HIGHER PRICES AS A RESULT OF THE NEW TAX REFORMS AND FURTHER PRICE DEREGULATION IN THE NEW YEAR FOOD PRICES JUMPED AS MUCH AS 40 IN BEIJING AND 20 IN SHANGHAI AND GUANGZHOU LAST WEEK ALONE AMID INFLATION FEARS AND PANIC BUYING VICE PREMIER ZHU RONGJI REASSURED THE PUBLIC IN A SPEECH CARRIED PROMINENTLY IN MAJOR CHINESE NEWSPAPERS TUESDAY THAT GRAIN PRICES WOULD BE SWIFTLY STABILIZED AND THE STATE GRAIN RESERVES WOULD BE DEPLETED TO LOWER PRICES TUESDAY'S PRICE CONTROLS MARK CHINA'S FIRST SUCH ATTEMPT SINCE MOST RESTRICTIONS WERE LIFTED ON STAPLE FOODS TWO YEARS AGO THE MOVE IS ALSO A TACIT ADMISSION THAT CHINA'S SHORTLIVED AUSTERITY DRIVE HAS FAILED TO BRING DOWN INFLATION WHICH STANDS AT AN ANNUAL RATE OF OVER 20 MIRON MUSHKAT LEHMAN BROTHERS INC'S CHIEF ECONOMIST FOR ASIA IN HONG KONG SAID THE REIMPOSITION OF PRICE CONTROLS IS A STEP BACK BUT THE MOVE MAY HAVE BEEN INEVITABLE AS CHINA NEGOTIATES ITS WAY TOWARD A MARKET ECONOMY TRYING TO BALANCE THE NEED FOR PRICE STABILITY AND STRUCTURAL ECONOMIC REFORMS IS VERY COMPLEX SOCIAL ENGINEERING HE ADDED FEW ECONOMISTS HOWEVER BELIEVE THAT THE LATEST PRICE CONTROLS WOULD BE EFFECTIVE GIVEN THAT THE BULK OF RETAIL PRICES HAVE BEEN DEREGULATED THE LATEST BUYING SPREE BEGAN ABOUT A MONTH AGO WHEN NEWS THAT THE GOVERNMENT WOULD RAISE THE STATE PURCHASE PRICE OF GRAIN FROM FARMERS REACHED THE HEADLINES THE GOVERNMENT ALSO ENDORSED AN INCREASE IN THE VALUEADDED TAX AND A NEW CONSUMPTION TAX NEXT YEAR ALTHOUGH THE LATTER APPLIES TO ONLY SIX LUXURY ITEMS INCLUDING TOBACCO AND ALCOHOL THE TAX PLAN HAS SPURRED PUBLIC CONCERN OF ANOTHER BOUT OF FOODPRICE INCREASES THE REIMPOSITION OF PRICE CONTROLS SIGNALS THAT PRICE AND SOCIAL STABILITY REMAIN TOP PRIORITIES OF THE PARTY BEIJING LEADERS ARE PAINFULLY AWARE THAT WIDESPREAD PUBLIC DISCONTENT STEMMING FROM INFLATION AND SOCIAL INEQUITIES CULMINATED IN THE PRODEMOCRACY MOVEMENT IN 1989 FOLLOWING THE BLOODY CRACKDOWN OF THOSE PROTESTS BEIJING SUSPENDED ECONOMIC REFORMS AND SLAMMED THE BRAKES ON THE ECONOMY TO COMBAT INFLATION FOR NOW VICE PREMIER ZHU DIDN'T GIVE ANY HINTS OF SLOWING THE PACE OF ECONOMIC REFORMS STABILIZING THE GRAIN PRICE AND INFLATION IS THE KEY TO A SMOOTH IMPLEMENTATION OF NEXT YEAR'S ECONOMIC REFORMS MR ZHU SAID 9312220138 931222 REBECCA IS BRILLIANT TOUGH DECISIVE' AND THREE YEARS OLD TO GET KIDS INTO PRESCHOOL PARENTS COLLAR VIPS TO PEN HIGHSOUNDING REFERENCES BY CLARE ANSBERRY STAFF REPORTER OF THE WALL STREET JOURNAL JUDGING BY A LETTER OF RECOMMENDATION THE APPLICANT IS IMPRESSIVE SHE HAS AN ABILITY TO EXCEL AND INTELLECTUAL CURIOSITY IT STATES SHE QUIETLY ENTERS A NEW SITUATION AND SIZES UP THE TERRITORY AND EXERTS QUIET LEADERSHIP THE LETTER GOES ON TO EXTOL OTHER VIRTUES SHE IS A GIFTED WRITER OF BOOKS WITH ACUTE OBSERVATION SKILLS OF COURSE THE ACUTE OBSERVER HAPPENS TO BE A CUTE FOURYEAROLD THE LETTER WAS WRITTEN BY A COLLEGE ADMINISTRATOR AND FAMILY FRIEND IN AN EFFORT TO GET HER INTO A PRIVATE EASTERN SCHOOL POWERBROKERING HAS REACHED A NEW LOW PRESCHOOL THESE DAYS AMERICA'S PRESTIGIOUS PRIVATE PRESCHOOLS AND KINDERGARTENS OFTEN FIND THEMSELVES DELUGED WITH 150 APPLICATIONS FOR A DOZEN SLOTS TO SORT THROUGH THE CRUSH MANY SUCH SCHOOLS HAVE SET UP AN APPLICATION PROCESS SO RIGOROUS THAT TODDLERS LACKING WHO'SWHOINKINDERGARTEN CREDENTIALS CAN FORGET IT IN THE OLD DAYS A PICTURE BIRTH CERTIFICATE AND BRIEF MEDICAL HISTORY SUFFICED TODAY MANY SCHOOLS REQUIRE YOUNGSTERS TO SIT THROUGH INTERVIEWS SUPPLY A FAMILY PEDIGREE INCLUDING CHARITABLE AFFILIATIONS BACK TO GRANDPARENTS AND SUBMIT A PORTFOLIO OF RECOMMENDATION LETTERS FROM ADULTS WHO OSTENSIBLY KNOW THE CHILD WELL THOUSANDS OF SUCH MISSIVES ARE IN THE MAIL AT THE MOMENT IN FACT SINCE UNBEKNOWNST TO MUCH OF AMERICA IT IS PRESCHOOL APPLICATION TIME PARENTS FEEL THEY HAVE LITTLE CHOICE BUT TO GO ALONG WITH THIS RITUAL THOUGH FOR MANY IT IS ABOUT AS PLEASANT AS THE FLU WHAT CAN YOU SAY ABOUT A TWOYEAROLD HE DOESN'T BITE AND IS ALMOST POTTYTRAINED SAYS SUNNY BATES A NEW YORK MOTHER AND HEAD OF THE RECRUITING FIRM SUNNY BATES ASSOCIATES SHE SUSPECTS THE LETTERS ARE SUBTERFUGES TO SCOUT PARENTS THEY WANT TO KNOW WHETHER THEY'RE GROOVY RICH SMART AND GREAT VOLUNTEERS WHO CAN RAISE HUNDREDS OF THOUSANDS OF DOLLARS IT'S ABSURD ADDS MS BATES WHO NONETHELESS ASKED HER MOST PRESTIGIOUS FRIEND A BARNARD COLLEGE PROFESSOR TO WRITE WONDERFUL THINGS ABOUT HER OWN CHILD HER DAUGHTER DIDN'T MAKE THE PRIVATE PRESCHOOL CUT AND ENDED UP IN A PARENT COOPERATIVE FEARING THIS PRESCHOOL KNIFE WORRIED PARENTS ARE RIFLING THEIR ROLODEXES LOOKING FOR THE HEADIEST LETTERHEADS IN HOPES OF TURNING THE HEADS OF ADMISSIONS OFFICIALS CONSIDER JAYNE CHASE WHO HAVING MOVED FROM PITTSBURGH TO NEW YORK THOUGHT GETTING HER CHILD INTO PRESCHOOL WAS AS EASY AS TWO PLUS TWO WHEN SHE LEARNED THAT NEW YORK SCHOOLS WERE BEING OVERRUN WITH APPLICANTS AND HER OWN CHILD HAD BEEN WAITLISTED SHE DECIDED TO PLAY THE LETTERS GAME IN EARNEST SHE SPENT A DAY AMASSING SIX RECOMMENDATIONS FIVE FROM PARENTS WHOSE CHILDREN WERE SCHOOL ALUMNI AND A SIXTH FROM A HIGHPROFILE FINANCIAL EXECUTIVE WHO HAD NEVER EVEN MET THE CHILD WE WENT FOR POWER SHE SAYS TWO DAYS LATER HER CHILD WAS ACCEPTED MAYBE THEY HAD NOTHING TO DO WITH IT SAYS MS CHASE OF THE WRITTEN RECOMMENDATIONS BUT I FELT I HAD TO HAVE THOSE LETTERS WRITTEN IN CHOOSING SIGNATORIES PARENTS SEEM TO BELIEVE THAT CORPORATE CHIEFTAINS PRESCHOOL TRUSTEES AND SCHOOL ALUMNI CARRY THE MOST CLOUT INTELLECTUAL UNIVERSITY TYPES ARE ALSO WILDLY POPULAR THERE ARE REGIONAL VARIATIONS AS WELL IN LOS ANGELES MOVIE DIRECTORS ARE BIG IN WASHINGTON MEMBERS OF CONGRESS WRITE AN INORDINATE NUMBER OF LETTERS ON BEHALF OF LITTLE CONSTITUENTS IN PITTSBURGH SOPHIE MASLOFF THE CITY'S MAYOR AND A GRANDMOTHER IS A REFERENCE OF CHOICE FOR WELLCONNECTED PARENTS HOPING FOR AN EDGE TRYING TO DISTINGUISH A PARTICULAR PRESCHOOLER IN A PACK OF PRODIGIES REQUIRES CREATIVITY THE LETTER WRITER'S NOT THE CHILD'S ONE LETTER FOR A NEW YORK PRESCHOOLER MARVELED AT HOW THE BOY LOVES THE OPERA IN FACT HIS MOTHER CONFESSES HE SIMPLY SAW OPERA ONCE ON TV AND WAS ATTENTIVE AN ANECDOTE SHE RELAYED IN PASSING TO THE LETTER WRITER ANOTHER NEW YORK MOTHER WHO FOR GOOD REASONS DOESN'T WANT TO BE NAMED EXPLAINS STANDARD LETTEROFRECOMMENDATION NUANCES PLAYING AN INSTRUMENT' MEANS THE CHILD BANGS ON THE PIANO SHE SAYS THAT A CHILD CAN BUILD CITIES WITH MODELS OR BLOCKS MEANS THE PARENT DID IT WITH THE CHILD THERE KNOWING THE CHILD MAY MEAN THE WRITER MET THE CHILD ONCE AT A BIRTHDAY PARTY ALONG WITH 20 OTHER CHILDREN AND BARNEY THE DINOSAUR ONE EXAMPLE EVERY YEAR SOME PARENT INEVITABLY LISTS FRED ROGERS OF MISTER ROGERS' NEIGHBORHOOD AS A REFERENCE FOR ELLIS SCHOOL IN PITTSBURGH YET ON SOME OCCASIONS SAY SCHOOL OFFICIALS MR ROGERS HAS GENTLY CONFIDED WHEN ASKED THAT HE ACTUALLY DOESN'T KNOW THE CHILDREN IN QUESTION ELLIS IN FACT IS AMONG A SMALL NUMBER OF SCHOOLS THAT ARE THINKING OF DOING AWAY WITH LETTERS OF RECOMMENDATION FOR THE KINDERGARTEN SET SAYS LOWERSCHOOL DIRECTOR SUSAN CRANE WHILE THE SCHOOL HASN'T OFFICIALLY DECIDED TO BE HONEST MANY LETTERS ARE RATHER INAPPROPRIATE SHE SAYS VERY FEW PEOPLE KNOW A FOURYEAROLD CHILD AND CAN ATTEST TO CHARACTER AT THE PRESTIGIOUS JOHN THOMAS DYE SCHOOL IN LOS ANGELES ADMINISTRATORS SAY THEY TOO RECOGNIZE THAT LETTERS HAVE GOTTEN A BIT UNREAL A LETTER THAT STARTS OUT I REALLY DON'T KNOW THE CHILD BUT THE FATHER'S A GOOD ATTORNEY' AND IS SIGNED BY THE POPE IS NICE BUT WE REALLY WANT TO KNOW ABOUT THE CHILD SAYS RAY MICHAUD HEADMASTER LIKEWISE THE DALTON SCHOOL IN NEW YORK WOULD MUCH RATHER HEAR FROM SUNDAYSCHOOL OR PRESCHOOL TEACHERS THAN WALL STREET EXECUTIVES AND SENATORS SAYS HEADMASTER GARDNER DUNNAN A FEW SCHOOLS SUCH AS CROSSROADS ELEMENTARY SCHOOL IN SANTA MONICA CALIF HAVE ABOLISHED LETTERS REQUIREMENTS ONLY TO HAVE LETTERS CONTINUE TO ARRIVE BY THE BUNDLE JOAN MARTIN THE SCHOOL'S DIRECTOR SAYS SOME PARENTS JUST CAN'T LET GO THEY SEEM EAGER TO SHOW US WHO THEY ARE FULLY AND SEEING WHO THEY ARE HAS TO DO WITH SEEING CONNECTIONS SHE SAYS STILL FOR SOME PARENTS ARRANGING RECOMMENDATION LETTERS IS THE EASY PART IN LARGE CITIES PARENTS TYPICALLY APPLY TO A HALFDOZEN SCHOOLS PAY APPLICATION FEES OF ABOUT 40 PER SCHOOL AND FRANTICALLY SHUTTLE AMONG THEM FOR TOURS INTERVIEWS ARE A MUST EVEN FOR THOSE APPLYING FROM AFAR THUS MARTHA ZORNOW FOUND HERSELF ONE DAY PACKING HER THREEYEAROLD FOR A 5 AM SHUTTLE FROM WASHINGTON TO NEW YORK WHERE THE FAMILY WAS RELOCATING FOR TWO INTERVIEWS WITH A RETURN FLIGHT THE SAME DAY HER SON WAS THE ONLY MALE ON BOARD WITHOUT A SUIT HE WAS IN A DAZE THE WHOLE TIME SHE SAYS SHE WASN'T MUCH BETTER HAVING HAD A BABY 11 DAYS BEFORE 9312220137 931210 REVIEW & OUTLOOK EDITORIAL MARJORIE'S MISDIRECTED MEETING THIS MONDAY BILL CLINTON WILL ATTEND AN ENTITLEMENT SUMMIT IN THE SUBURBAN PHILADELPHIA DISTRICT OF FRESHMAN REP MARJORIE MARGOLIESMEZVINSKY MS MARGOLIESMEZVINSKY RECALL EARNED 15 MINUTES OF NATIONAL FAME FOR BEING ALMOST DRAGGED DOWN THE AISLE TO CAST THE DECIDING VOTE IN FAVOR OF MR CLINTON'S 250 BILLION TAX INCREASE THE SUMMIT IS ONE OF THE DEALS HE CUT TO WIN HIS BUDGET VOTE AND BOY WHAT A DEAL IT IS THE EARLY EVIDENCE IS THAT THE WHITE HOUSE WILL USE THIS THING TO SELL ITS HEALTHCARE PLAN WHICH OF COURSE IS CHOCKFULL OF NEW ENTITLEMENTS AS FOR REP MARGOLIESMEZVINSKY SHE'S BEEN DEALING A HIGH PROFILE ROLE TO VARIOUS GROUPS IF THEY CONTRIBUTE TO WHAT AMOUNTS TO A 500000 IMAGEBUILDING PROGRAM IN HER DISTRICT ROB MCCORD MRS MARGOLIESMEZVINSKY'S 1992 CAMPAIGN TREASURER SENT OUT LETTERS ALERTING CORPORATIONS AND FOUNDATIONS THAT WE ARE PLANNING TO GIVE SUPPORTERS THE OPPORTUNITY TO PARTICIPATE DIRECTLY IN A PANEL DISCUSSION DURING THE CONFERENCE AMONG THOSE WHO PONIED UP 25000 ARE AT&T MERCK AND GENERAL MOTORS FOUNDATION OTHERS DECLINED NOTING THAT MUCH OF THE MONEY WOULD BE SPENT ON POLLS AND PROMOTING FUTURE MEETINGS IN AN ELECTION YEAR LAWRENCE SMEDLEY OF THE NATIONAL COUNCIL OF SENIOR CITIZENS TOLD THE WASHINGTON POST THAT THE NOTSOSUBTLE MESSAGE OF THE LETTER AND PHONE CALLS WAS THAT IF YOU PAY YOU PLAY EMBARRASSED A LITTLE ANYWAY THE WHITE HOUSE HAS ANNOUNCED THAT PRESIDENT CLINTON WILL STILL ATTEND BUT HE WON'T APPEAR ON ANY PANEL THAT INCLUDES GROUPS THAT BANKROLLED THE SUMMIT BUT THE MEETING'S ENTITLEMENTS COVER HAS BEEN BLOWN MUCH OF IT WILL BE DOMINATED BY CHEERING FOR CLINTON HEALTH AND JOBTRAINING INITIATIVES MOREOVER ATTENDANCE IS LIMITED TO CAREFULLY INVITED GUESTS ANY QUESTIONS WILL BE PRESCREENED MYSTERIOUSLY ADDING LEGITIMACY TO THE PROCEEDINGS WILL BE GOP SENATOR JOHN DANFORTH AND FORMER GOP GOVERNOR TOM KEAN OF NEW JERSEY IT'S WHAT DANIEL BOORSTIN YEARS AGO DESCRIBED AS A PSEUDO EVENT SEE RELATED LETTER LETTERS TO THE EDITOR DOING THE RIGHT THING CREATES BELTWAY JITTERS WSJ DEC 22 1993 9312100033 YY93 MM12 9312220136 931222 BUSINESS BRIEF TCI HOME SHOPPING AGREE TO EXPAND NETWORK ABROAD RAISING ANTE ON QVC TELECOMMUNICATIONS INC AND HOME SHOPPING NETWORK INC HAVE AGREED TO JOINTLY EXPAND HOMESHOPPING ABROAD IN A MOVE THAT SIGNALS AN ESCALATING RIVALRY BETWEEN HOME SHOPPING AND ITS FORMER PARTNER IN A PROPOSED MERGER QVC NETWORK INC THE NEW VENTURE CALLED HOME SHOPPING NETWORK INTERNATIONAL IS LIKELY TO COMPETE WITH QVC OVERSEAS AND WOULD FURTHER PIT THE TWO HOMESHOPPING GOLIATHS AGAINST EACH OTHER SINCE THEY CALLED OFF A MERGER PROPOSAL IN NOVEMBER UNTIL RECENTLY BOTH QVC AND HOME SHOPPING WERE PARTLY CONTROLLED BY TCI'S LIBERTY MEDIA CORP UNIT BUT LAST MONTH FEDERAL REGULATORS FORCED LIBERTY TO SHED ITS QVC STAKE ONCE QVC CHAIRMAN BARRY DILLER BID FOR PARAMOUNT COMMUNICATIONS INC SINCE THEN QVC AND HOME SHOPPING HAVE BEGUN POSITIONING THEMSELVES TO COMPETE MORE VIGOROUSLY IN THE HOMESHOPPING BUSINESS WHICH IS CONSIDERED TO HAVE ENORMOUS GROWTH POTENTIAL FOR CABLE COMPANIES TELEPHONE COMPANIES AND RETAILERS HOME SHOPPING IS GOING TO GO HEADTOHEAD WITH QVC NOT ONLY DOMESTICALLY BUT NOW INTERNATIONALLY AS WELL PREDICTS ALVIN MIRMAN AN ANALYST WITH GRUNTAL & CO HE SAYS THAT WITH IMPROVEMENTS BEING MADE BY NEW MANAGEMENT AT HOME SHOPPING THERE WILL BE A NEW SERVICE EMERGING WITH MERCHANDISING STRENGTHS IT HASN'T HAD BEFORE BUT QVC HAS ALREADY MADE AN END RUN AROUND HOME SHOPPING FOR A DEAL WITH NEWS CORP'S BRITISH SKY BROADCASTING ONE OF THE LARGEST PAYTV SERVICES IN EUROPE ACCORDING TO PEOPLE FAMILIAR WITH THAT TRANSACTION HOME SHOPPING WAS READY TO SIGN A DEAL WITH RUPERT MURDOCH'S NEWS CORP EARLIER THIS YEAR BUT WHEN QVC'S MR DILLER WHO FORMERLY RAN NEWS CORP'S FOX UNIT GOT WIND OF IT HE RACED TO CLOSE A DEAL HIMSELF IN JUNE AT A CABLE TRADE SHOW QVC AND BSKYB ANNOUNCED AN AGREEMENT TO JOINTLY OFFER QVC PROGRAMMING TO VIEWERS IN THE UK IRELAND AND EUROPE THE NEW HOME SHOPPING INTERNATIONAL VENTURE WILL SELL COUNTRYSPECIFIC PRODUCTS AS WELL AS US PRODUCTS TO VARIOUS MARKETS AROUND THE GLOBE WE'LL BE SENSITIVE TO THE NUANCES OF EVERY CULTURE IN EVERY COUNTRY WE SELL TO A SPOKESWOMAN SAID MICHAEL WD MCMULLEN PRESIDENT OF HOME SHOPPING'S INTERNATIONAL DIVISION WILL HEAD THE NEW VENTURE THE COMPANY SAID IT WOULD RELEASE MORE DETAILS SOON IN A SEPARATE BUT RELATED ANNOUNCEMENT MADE EARLIER TCI SAID IT WOULD BUY A 60 STAKE IN FLEXTECH PLC A UK OPERATOR OF SATELLITE AND CABLE PROGRAMMING IN RETURN FLEXTECH WOULD RECEIVE TCI STAKES IN FOUR UK PROGRAMMING SERVICES INCLUDING BRAVO UK GOLD UK LIVING AND A CHILDREN'S NETWORK CALLED CHILDREN'S CHANNEL 9312220135 931222 FINANCING BUSINESS FRANCE GROWTH FUND INC FRANCE GROWTH FUND INC NEW YORK SAID THAT IT FILED A REGISTRATION STATEMENT FOR A RIGHTS OFFERING OF ABOUT 38 MILLION NEW SHARES OF COMMON STOCK DESIGNED TO INCREASE ITS ASSETS THE FUND WITH CURRENT ASSETS OF ABOUT 145 MILLION INVESTED PRIMARILY IN FRENCH EQUITY SECURITIES SAID THAT SHAREHOLDERS WILL RECEIVE ONE RIGHT FOR EACH SHARE OF COMMON STOCK THEY HOLD ENTITLING THEM TO ACQUIRE ONE SHARE OF COMMON STOCK FOR EVERY THREE RIGHTS THE FUND MAY ISSUE UP TO 25 MORE SHARES THAN THE OFFERING AMOUNT TO ACCOMMODATE DEMAND RECORD PRICING AND EXPIRATION DATES FOR THE OFFERING WILL BE FIXED PRIOR TO THE OFFERING WHICH IS EXPECTED TO COMMENCE LATE NEXT MONTH 9312220133 931222 CORPORATE FOCUS INCINERATORS TAKE ON KILNS IN HAZARDOUSWASTE BATTLE BUT EXPLOSIONS FIRES AND FALSIFICATION OF RECORDS AT WMX HAMPER EFFORTS BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL IT'S A BAD TIME FOR WMX TECHNOLOGIES INC TO FACE A NASTY SCRAP WITH REGULATORS OVER EXPLOSIONS FIRES AND FALSIFICATION OF RECORDS AT AN ILLINOIS INCINERATOR THAT'S BECAUSE THE WASTEINDUSTRY GIANT AND OTHER INCINERATION COMPANIES JUST LAUNCHED A LOBBYING EFFORT TO CONVINCE UNCLE SAM THEY'RE THE GOOD GUYS IN THE HAZARDOUS WASTEBURNING BUSINESS THE COMPANIES' EFFORT BEGUN NOV 23 AT A MEETING WITH ENVIRONMENTAL PROTECTION AGENCY CHIEF CAROL BROWNER SEEKS TO PORTRAY RIVAL CEMENT KILNS AS THE VILLAINS NOT AS REGULATED NOT AS CLEAN KILNS WHICH CAN BURN MUCH WASTE MIXED IN WITH THEIR FUEL HAVE GROWN TO HANDLE ROUGHLY TWICE THE VOLUME THAT COMMERCIAL HAZARDOUSWASTE INCINERATORS DO THE INCINERATOR VS KILN CONTEST FLARED UP BECAUSE AN EXCESS OF BURNING CAPACITY HAS DEVELOPED SENDING PRICES FOR INCINERATION PLUMMETING AND THREATENING MORE THAN 1 BILLION OF INVESTMENTS MADE BY WMX FORMERLY WASTE MANAGEMENT INC AND OTHER COMPANIES MS BROWNER FAVORS TOUGH REGULATION OF BURNING OF HAZARDOUS WASTES BUT SHE HASN'T SAID ENOUGH ABOUT HER PLANS FOR COMPANIES TO KNOW WHETHER THEY'LL GAIN OR SUFFER THE INITIAL MEETING WAS ARRANGED BY DEAN L BUNTROCK WMX'S CHAIRMAN WHO INVITED OTHER INDUSTRY EXECUTIVES WITHOUT EPA HELP FINANCIAL DETERIORATION IN THE INCINERATION BUSINESS WOULD CONTINUE BUT HARDLY HELPFUL TO THE INDUSTRY EFFORT IS A LAWSUIT BY ILLINOIS STATE OFFICIALS AGAINST A WMX UNIT THE SUIT CALLS INTO QUESTION PREVIOUS ASSURANCES BY THE COMPANY THAT IT WOULD CLEAN UP OPERATIONS AT ITS BIG SAUGET ILL INCINERATION PLANT JUST ACROSS THE MISSISSIPPI RIVER FROM DOWNTOWN ST LOUIS THE PLANT BURNS TOXIC DIRT AND LIQUIDS AND AN EXOTIC ARRAY OF LEFTOVER CHEMICALS FROM INDUSTRIAL AND ACADEMIC LABS AROUND THE US ABOUT 35000 TONS A YEAR IN ALL AFTER AN EXPLOSION A RUNAWAY CHEMICAL REACTION AND OTHER ALLEGED VIOLATIONS AT SAUGET WMX PAID A 31 MILLION PENALTY IN DECEMBER 1991 AND PROMISED TO DO BETTER WE SPARE NO EXPENSE NO MANPOWER TO MAKE SURE PROBLEMS DON'T REPEAT THEMSELVES THE PLANT'S ENVIRONMENTAL MANAGER RAY SMILEY SAID IN A FEBRUARY 1992 INTERVIEW AND JOAN BERNSTEIN VICE PRESIDENT OF ENVIRONMENTAL POLICY AND ETHICAL STANDARDS AT THE COMPANY'S OAK BROOK ILL HEADQUARTERS SAID AT THE TIME THAT LINES OF REPORTING HAD BEEN CHANGED SO THAT OFFICIALS IN THE FIELD SUCH AS MR SMILEY WOULD HAVE THE EAR OF TOP EXECUTIVES NEITHER MR SMILEY NOR MS BERNSTEIN WILL COMMENT TODAY BUT ACCORDING TO STATE AND COMPANY RECORDS PROBLEMS PERSISTED WHAT'S MORE THE PATTERN VIOLATIONS PAYING A BIG PENALTY AND PROMISING TO IMPROVE THEN FURTHER PROBLEMS ISN'T ISOLATED TO THE SAUGET PLANT WMX PAID PENALTIES OF 375 MILLION 25 MILLION AND 3 MILLION RESPECTIVELY FOR VIOLATIONS AT ITS CHICAGO HAZARDOUS WASTE INCINERATOR THE UNPLUGGING OF EMISSIONMONITORING EQUIPMENT A MAJOR EXPLOSION AND FALSIFYING RECORDS THE PLANT WAS ORDERED SHUT DOWN BY REGULATORS AFTER THE 1991 EXPLOSION AND REMAINS IDLE I'VE NEVER SEEN ANYTHING LIKE THE CHICAGO PLANT IN MY LIFE ASSERTS RICHARD CARNES A FORMER EPA INCINERATION OFFICIAL WHO NOW WORKS FOR A FIRM FOUR NINES INC HIRED TO HELP THE STATE MONITOR FIRST THE CHICAGO THEN SAUGET SITES AND I WAS NOT IMPRESSED WITH WHAT I SAW AT SAUGET IN A LAWSUIT FILED IN STATE COURT IN ST CLAIR COUNTY ILLINOIS OFFICIALS ARE ASKING FOR HEFTY FINES AND TO HAVE THE SAUGET PLANT SHUT DOWN THAT COULD CAUSE FURTHER FINANCIAL PROBLEMS FOR WMX WHICH IN THE THIRD QUARTER WROTE OFF ENTIRELY THE CHICAGO PLANT AND PORTIONS OF ITS INVESTMENTS IN SAUGET AND ANOTHER INCINERATOR IN TEXAS AS PART OF A PRETAX 550 MILLION WRITEDOWN OF ASSETS IN THE HAZARDOUSWASTE BUSINESS WMX OFFICIALS WON'T DISCUSS THE RECENT INCIDENTS AT SAUGET THE STATE'S CASE LACKS MERIT THE COMPANY CLAIMS AND IT'S SEEKING DISMISSAL OF THE SUIT PAT PAYNE PRESIDENT OF WMX'S CHEMICAL WASTE MANAGEMENT INC UNIT COMPLAINS THAT THE COMPANY REPORTED MANY OF THE INCIDENTS ITSELF AND ALL OF A SUDDEN WHAM BANG THESE GUYS COME AFTER US LIKE A TON OF BRICKS COMMERCIAL INCINERATORS AS OPPOSED TO CAPTIVE PLANTS THAT BURN A RELATIVELY UNIFORM WASTE FROM A SINGLE CHEMICAL PLANT FOR INSTANCE ARE DIFFICULT TO MANAGE BECAUSE OF THE SHEER VARIETY OF DANGEROUS CHEMICALS HANDLED EXPLOSIONS FIRES AND TOXIC AIR RELEASES CAN RESULT FROM COMINGLING THE WRONG STUFF OR JUST FAILING TO RECOGNIZE HOW VOLATILE A SUBSTANCE IS LAPSES IN THIS AREA CAUSED THE CHICAGO PLANT EXPLOSION AND THE 2 1/2HOUR RUNAWAY REACTION THAT IN JANUARY 1990 FORCED EVACUATION AT SAUGET OFFICIALS' GREATEST WORRY IS THAT AN EXPLOSION OR FIRE COULD SPREAD TO OTHER WASTE THOUGH WMX HAS TERMED THAT POSSIBILITY REMOTE THE POTENTIAL FOR ACCIDENTS IS LARGE IN HANDLING SOCALLED LAB PACKS DRUMS CONTAINING A VARIETY OF CHEMICALS FROM LABS WMX DISCOVERED IN OCTOBER 1992 THAT AN EMPLOYEE AT SAUGET FALSIFIED RECORDS FILLING OUT INSPECTION REPORTS ON INCOMING LAB PACKS THAT HE HADN'T ACTUALLY INSPECTED THE WORKER JAMES SEPER WAS FIRED AND PROCEDURES TIGHTENED POSSIBILITY OF OVERWORK BUT MR CARNES THE FOUR NINES CONSULTANT SAYS THE FALSIFICATIONS OCCURRED BECAUSE MR SEPER WAS OVERWORKED HE LITERALLY COULDN'T LOOK AT ALL THE DRUMS HE SAID HE DID HIS BOSS SHOULD HAVE KNOWN THAT WHERE WAS HIS SUPERVISOR MR SEPER IN A TELEPHONE INTERVIEW ADMITS FILLING OUT INSPECTION REPORTS ON DRUMS HE DIDN'T CHECK BUT SAYS ONLY ON WASTE FROM CUSTOMERS HE HAD DEALT WITH AND TRUSTED TO PROPERLY ACCOUNT FOR CONTENTS HE AGREES HE WAS AT TIMES OVERWORKED AND SAYS WHEN HE ASKED FOR HELP HE GOT NO RESPONSE HE SAYS HE DECIDED HEY KID YOU'RE ON YOUR OWN THAT'S EXACTLY THE MINDSET WMX CONTENDED IN 1992 THAT IT WAS SEEKING TO ELIMINATE MS BERNSTEIN THE VICE PRESIDENT SAID AT THE TIME WHEN YOU'VE GOT A PROBLEM DON'T SIT ON IT DON'T TRY TO SOLVE IT YOURSELF NO ACCIDENTS RESULTED BUT IN THE MONTHS BEFORE ITS DISCOVERY LAB PACKS WERE A PROBLEM ONE EXPLODING IN JULY 1992 AND A BOTTLE BURSTING INTO FLAMES IN SEPTEMBER THERE WERE NO INJURIES PROBLEMS CONTINUED ON DEC 23 1992 JUST AFTER MIDNIGHT TWO STACKS OF REPACKAGED LAB WASTES BURST INTO FLAME IN A STORAGE ROOM WHERE EMPLOYEES HAD BEEN WORKING MINUTES EARLIER IT TOOK ABOUT 30 MINUTES FOR THE CREW AND THEN THE SAUGET FIRE DEPARTMENT TO EXTINGUISH THE FIRE WHICH EMITTED TOXIC FUMES ACCORDING TO MR CARNES THE PLANT ALSO SUFFERED EXPLOSIONS IN APRIL AND AUGUST 1992 WITH AN ABUNDANCE OF INCINERATION CAPACITY REGULATORS CAN SEEK SAUGET'S CLOSING WITHOUT WORRYING ABOUT HAZARDOUS WASTE STACKING UP ON LOADING DOCKS AROUND THE COUNTRY THAT WASN'T TRUE A FEW YEARS AGO BEFORE MANUFACTURERS SHARPLY REDUCED THE AMOUNTS OF WASTE THEY GENERATE AND KILNS BEGAN TAKING SO MUCH SAYS WILLIAM INGERSOLL AN ILLINOIS EPA OFFICIAL THEY'RE IN A LIFEANDDEATH STRUGGLE FOR THAT FACILITY 9312220130 931222 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 7/8 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 318 30 TO 44 DAYS 315 45 TO 119 DAYS 322 120 TO 149 DAYS 324 150 TO 179 DAYS 328 180 TO 239 DAYS 335 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 331 30 DAYS 330 60 DAYS 330 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 259 TWO MONTHS 265 THREE MONTHS 277 SIX MONTHS 303 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 320 ONE MONTH 320 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 319 30 DAYS 316 60 DAYS 316 90 DAYS 320 120 DAYS 323 150 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 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 7/16 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 615 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 710 60 DAYS 718 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 705 60 DAYS 715 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 9312220129 931222 FINANCING BUSINESS PROGRESSIVE CORP PROGRESSIVE CORP MAYFIELD HEIGHTS OHIO SAID IT FILED A SHELF REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO ISSUE FROM TIME TO TIME ITS DEBT SECURITIES IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED 200 MILLION 9312220128 931222 ECONOMY TREASURY DEPARTMENT SAYS BUDGET DEFICIT WIDENED IN NOVEMBER WASHINGTON THE FEDERAL GOVERNMENT'S BUDGET DEFICIT WIDENED TO 3838 BILLION IN NOVEMBER FROM A YEAREARLIER 3273 BILLION THE TREASURY DEPARTMENT SAID NOVEMBER'S FIGURE COMPARES WITH OCTOBER'S REVISED 4542 BILLION TOTAL FOR THE FIRST TWO MONTHS OF THE GOVERNMENT'S FISCAL YEAR WHICH BEGAN OCT 1 THE DEFICIT TOTALED 838 BILLION COMPARED WITH A YEAREARLIER 8152 BILLION RECEIPTS INCREASED TO 8311 BILLION IN NOVEMBER FROM A YEAREARLIER 7463 BILLION AND FROM OCTOBER'S 7867 BILLION NOVEMBER OUTLAYS TOTALED 12149 BILLION COMPARED WITH A YEAREARLIER 10735 BILLION AND OCTOBER'S 12409 BILLION NET INTEREST LAST MONTH TOTALED 1617 BILLION THE RESOLUTION TRUST CORP GENERATED A NET 117 BILLION IN INCOME LAST MONTH IN OCTOBER IT SPENT 7 MILLION MORE THAN IT COLLECTED 9312220127 931222 CORRECTIONS & AMPLIFICATIONS SEEBURG CORP A JUKEBOX COMPANY OWNED BY THE FAMILY OF LOUIS J NICASTRO SOUGHT BANKRUPCTYLAW PROTECTION FROM CREDITORS IN 1979 AFTER BEING SOLD BY XCOR INTERNATIONAL INC IN AN ARTICLE MONDAY ABOUT MR NICASTRO IT WAS INCORRECTLY SUGGESTED THAT XCOR ITSELF SOUGHT BANKRUPTCYLAW PROTECTION 9312220126 931222 WHO'S NEWS METALL MINING CHAIRMAN QUITS TORONTO METALL MINING CORP SAID HEINZ SCHIMMELBUSCH RESIGNED AS CHAIRMAN AS PART OF HIS DISMISSAL AS CHAIRMAN OF METALLGESELLSCHAFT AG WHICH CONTROLS METALL MINING METALLGESELLSCHAFT OF GERMANY SAID LAST WEEK THAT IT DISMISSED DR SCHIMMELBUSCH AS CHAIRMAN OF THE MANAGEMENT BOARD BECAUSE HE AND ANOTHER OFFICIAL DIDN'T INFORM THE COMPANY'S SUPERVISORY BOARD OF PROBLEMS WITH OIL FUTURES CONTRACTS IN THE US METALL MINING A TORONTO MINING CONCERN SAID KLAUS GOECKMANN WILL SUCCEED DR SCHIMMELBUSCH AS CHAIRMAN DR GOECKMANN 51 YEARS OLD IS ON THE MANAGEMENT BOARD OF METALLGESELLSCHAFT 9312220125 931222 MAPLEWOOD'S WALL' OF MISUNDERSTANDING BY ROBERT GRASMERE MAPLEWOOD NJ HOW IN THE WORLD COULD PEOPLE PROPEL A MINOR LOCAL TRAFFIC ORDINANCE INTO A NATIONALLY DEBATED ISSUE BY TURNING A SIMPLE TRAFFIC SAFETY MATTER INTO ONE OF RACE THAT'S HOW THE CONTROVERSY STEMMED FROM OUR TOWN'S RECENT DECISION TO BUILD FIVE ORNAMENTAL GATES IN OUR HILLCREST ROAD AREA TO ALLEVIATE TRAFFIC CONGESTION IN CRITICAL AND ANGRY STATEMENTS THE MAYOR OF THE NEIGHBORING CITY OF NEWARK PROTESTED THAT HE WAS GREATLY OFFENDED AND EXTREMELY DISTURBED BY THE DECISION TO ERECT THESE GATES SUBURBAN MAPLEWOOD IT WAS INACCURATELY CLAIMED WAS BUILDING A WALL TO KEEP OUT PREDOMINANTLY BLACK NEWARK BUT THE FACTS OF THE CASE SEEM TO HAVE ELUDED NEWARK OFFICIALS AND BEAR LITTLE RESEMBLANCE TO WHAT HAS BEEN REPORTED IN THE MEDIA THE DECISION TO PLACE THE FIVE GATES WAS THE CULMINATION OF A FOURYEAR RESIDENTSPARKED EFFORT TO ALLEVIATE BURGEONING AUTO TRAFFIC IN THE LARGELY RESIDENTIAL HILLCREST NEIGHBORHOOD WHICH HAS A SUBSTANTIAL MINORITY POPULATION THE DECISION WAS REACHED BY A MULTIRACIAL RESIDENT COMMITTEE THAT INCLUDED AN AFRICANAMERICAN COCHAIR THE HILLCREST AREA IS FLANKED BY THREE MAJOR STREETS ONE OF WHICH IRVINGTON AVENUE FORMS OUR BORDER WITH NEWARK IN RECENT YEARS TWO ADDITIONAL TRAFFIC LIGHTS HAD CAUSED THIS ROUGHLY RECTANGULAR EIGHT BLOCK AREA TO BE DEFINED BY A TOTAL OF FOUR TRAFFIC LIGHTS ONE AT EACH EXTREMITY INEVITABLY MOTORISTS HAD DISCOVERED THREE LIGHTAVOIDANCE PATTERNS THAT CAUSED HEAVY TRAFFIC ON THE NARROW INTERIOR STREETS PEDESTRIANS HAD BEEN INJURED AND CHILDREN AT PLAY WERE CONSTANTLY ENDANGERED RESIDENTS FELT THREATENED IN THE BEST TRADITION OF CITIZEN INVOLVEMENT THE NEIGHBORS ORGANIZED AN ASSOCIATION RECRUITED MEMBERS HELD MEETINGS ELECTED OFFICERS PUBLISHED A NEWSLETTER AND EXAMINED POSSIBLE REMEDIES FOR THIS TRAFFIC INVASION THEY ALSO REACHED OUT FOR THE NEWARK COUNCILMAN WHO REPRESENTS THE ADJOINING WEST WARD STATE SEN RONALD RICE AND APPRISED HIM OF THEIR OBJECTIVES SEN RICE HAS BEEN VERY HELPFUL IN THE PAST SEVERAL WEEKS IN QUIETING THE ENSUING FUROR THE REMEDIAL OPTION THE HILLCREST NEIGHBORHOOD ASSOCIATION FINALLY SELECTED AFTER TWO YEARS OF EXPLORATION WAS TO CREATE A SERIES OF DEAD END STREETS BY MEANS OF FIVE GATES BRICK PILLARS AND OPENWORK ORNAMENTAL IRON PLACED INGENIOUSLY WITHIN THE TRACT PEDESTRIAN TRAFFIC IS UNIMPEDED THE GATES CAN BE OPENED FOR MAINTENANCE SNOW REMOVAL AND EMERGENCIES FOUR OF THE FIVE GATES ARE TOTALLY WITHIN MAPLEWOOD ONE GATE HAPPENS TO FACE NEWARK SIMPLY BECAUSE IT IS THE KEY TO BLOCKING ONE OF THE MOST DANGEROUS LIGHT AVOIDANCE PATTERNS FULL CLEARANCE FOR THE GATES AND THEIR RESULTANT DEAD END STREETS WAS OBTAINED FROM THE NEW JERSEY DEPARTMENT OF TRANSPORTATION WHOSE ONLY CONCERN IS VEHICULAR TRAFFIC REGULATION MAPLEWOOD'S GOVERNING BODY WHICH INCLUDES VICE MAYOR J HARRY SMITH AN AFRICANAMERICAN PASSED THE ENABLING ORDINANCE ON FIRST READING AND THOUGHT LITTLE MORE OF IT UNTIL A RELATIVELY SMALL REFERENCE TO THE BARRIERS IN THE NEWARK STARLEDGER ON NOV 23 APPARENTLY ANGERED NEWARK MAYOR SHARPE JAMES WHO PROMPTLY LABELED THE PROJECT ELITIST AND RACIALLY INSPIRED I FOUND THIS CHARACTERIZATION OF THE PROJECT CURIOUS SINCE MINORITY RESIDENTS INCLUDING THE NEIGHBORHOOD COCHAIRMAN WERE PROMINENT IN THE PLAN'S CREATION THE FIRESTORM OF PRESS AND MEDIA COVERAGE ABSOLUTELY STUNNED ME AND MY COLLEAGUES ON THE GOVERNING BODY THE HILLCREST RESIDENTS AS WELL AS MOST OF OUR TOWN'S OTHER RESIDENTS UP TO THAT POINT I HAD ENJOYED AN ADMIRABLE RELATIONSHIP WITH MAYOR JAMES WHOSE RECENT ASCENSION TO THE PRESIDENCY OF THE NATIONAL LEAGUE OF CITIES IS A SOURCE OF AREA PRIDE WHY HAD THIS GRASSROOTS RESIDENTGENERATED EFFORT BEEN SO MISUNDERSTOOD OUR EXPLANATIONS APPEARED TO BE DISBELIEVED OR DISREGARDED A FEEDING FRENZY OF MEDIA COVERAGE ENSUED FROM THANKSGIVING UNTIL DEC 7 WHEN THE ENABLING ORDINANCE WAS PASSED UNANIMOUSLY AFTER A LONG BUT LARGELY FAVORABLE HEARING THERE WERE 33 RADIO AND TV INTERVIEWS CAMERA CREWS STALKED OUR GEORGIAN COLONIAL TOWN HALL ROAMED THE HILLCREST ROAD AREA AND PANNED VIEWS OF OUR TREELINED STREETS AS MAYOR I FOUND MYSELF ON THE TODAY SHOW AT DAWN AND THE PHIL DONAHUE SHOW THAT SAME AFTERNOON NEWSPAPERS NATIONWIDE KEPT QUOTING MAYOR JAMES'S ORIGINAL CHARACTERIZATIONS OF THE PROJECT AS ELITIST AND RACIST ADDING EMBELLISHMENTS SUCH AS APARTHEID AND THE BERLIN WALL EVEN IN TOKYO THE PRESS CARRIED THE STORY BUT LEFT OUT OF NEARLY ALL MEDIA ACCOUNTS OF MAPLEWOOD'S GATES HAS BEEN THE FACT THAT WE HAVEN'T DONE ANYTHING THAT HASN'T BEEN DONE IN NUMEROUS CITIES THROUGHOUT THE COUNTRY AND WE'VE DONE IT FOR PERFECTLY GOOD NONRACIAL REASONS GOVERNING MAGAZINE RECENTLY DESCRIBED DAYTON OHIO'S FIVE OAKS NEIGHBORHOOD IN WHICH 34 STREET BARRIERS WERE PLACED ST LOUIS CHICAGO FORT LAUDERDALE FLA BRIDGEPORT CONN MANHASSET NY AND MANY MANY OTHER PLACES HAVE APPARENTLY USED THIS DEVICE FOR STREET SAFETY AND NEIGHBORHOOD ENHANCEMENT I CAN ONLY CONCLUDE FROM OUR EXPERIENCE THAT THE MEDIA AND MOST INDIVIDUALS EXPECT OR EVEN WANT THE WORST TO BE TRUE BUT THE WHOLE FLAP MIGHT NEVER HAVE OCCURRED IF SUCH A PROMINENT MAYOR AS MR JAMES HAD ENJOYED THE BENEFIT OF A BIT SHARPER STAFF WORK AND A MODICUM OF QUIET RESEARCH HE INSISTS THAT WE SHOULD HAVE CONSULTED HIM BUT IT REALLY WAS A MAPLEWOOD INTERNAL MATTER HAD WE BEEN ASKED FOR SPECIFICS WE'D HAVE BEEN DELIGHTED TO RESPOND ALL THESE DEFICIENCIES POURED INTO THE DEEP WELL OF CYNICISM THAT HAS ENGULFED ALL SOCIETY GIVING NEW MEANING TO TEMPEST IN A TEAPOT AND MAKING OUR NEAT LITTLE PROJECT A NATIONWIDE CONCERN WHEN CHARGES OF RACIAL BIAS ARE USED INDISCRIMINATELY AND INACCURATELY AS THEY WERE IN THIS CASE BY MAYOR JAMES THEY ARE DILUTED AND THEN WHAT HAPPENS IN CASES OF TRUE BLATANT DISCRIMINATION A CAREFUL READING OF THE FABLE ABOUT THE BOY WHO MAKES A HABIT OF CRYING WOLF WOULD BE IN ORDER FOR MR JAMES AND HIS STAFF MR GRASMERE HAS BEEN MAYOR OF MAPLEWOOD NJ FOR 23 YEARS 9312220124 931222 WHO'S NEWS SECOM GENERAL CORP SECOM GENERAL CORP LIVONIA MICH ROBERT CLEMENTE 40 YEARS OLD WAS APPOINTED PRESIDENT AND A DIRECTOR OF THIS PARTS AND TOOLMAKING COMPANY MR CLEMENTE AN ATTORNEY WITH HARDY LEWIS POLLARD & PAGE IN BIRMINGHAM MICH SUCCEEDS ROY A MCKNIGHT WHO WILL REMAIN CHAIRMAN SEPARATELY GREGORY ADAMCZYK ROCCO POLLIFRONE AND RICHARD THOMPSON WERE APPOINTED BOARD MEMBERS MR ADAMCZYK 38 IS MAJORITY OWNER OF FORWARD PLANNING CORP A FIRM THAT SPECIALIZES IN MANUFACTURING PLANT LAYOUT DESIGN AND RELATED SYSTEMS MR POLLIFRONE 36 IS PRESIDENT AND CHIEF EXECUTIVE OF FORWARD PLANNING CORP MR THOMPSON 24 IS VICE PRESIDENT OF MST STEEL CORP 9312220123 931222 RULE OF LAW HOW CRIES OF CENSORSHIP' STIFLE THE SCHOOLS DEBATE BY STEPHEN BATES ACROSS THE COUNTRY THIS MONTH SCHOOL ADMINISTRATORS ARE RESOLUTELY BARRING CLASSROOM CRECHES BIBLE STORIES ANGELS CAROLS AND OTHER TRACES OF CHRISTIAN DOGMA YET SCARCELY ANYBODY IS RAISING A STINK ABOUT CENSORSHIP CONTRAST ANOTHER HOLIDAY IN THE VIEW OF SOME CONSERVATIVE CHRISTIANS HALLOWEEN IS A PAGAN FESTIVAL THAT HAS NO PLACE IN THE PUBLIC SCHOOLS PARENTS WHO ADVANCE THAT ARGUMENT SAYS ARTHUR KROPP OF PEOPLE FOR THE AMERICAN WAY ARE GUILTY OF CENSORING HALLOWEEN THEY SHOULD QUIT TRYING TO SPOIL THE FUN MR KROPP ADDS A REBUKE THAT CONSERVATIVE CHRISTIANS PERIODICALLY UTTER AGAINST OPPONENTS OF OFFICIAL CHRISTMAS OBSERVANCES I MEAN LET'S LIGHTEN UP RELIGIOUSRIGHT ACTIVISTS PERCEIVE THE HALLOWEENCHRISTMAS DISTINCTION AS PART OF A VILE DOUBLE STANDARD PEOPLE WHO COMPLAIN ABOUT CHRISTIAN MATERIALS IN THE CLASSROOM ARE LAUDED AS SAVIORS OF THE CONSTITUTION BUT PEOPLE WHO COMPLAIN ABOUT ANTICHRISTIAN MATERIALS ARE REVILED AS GRINCHLIKE CENSORS PLOTTING TO SUBVERT THE CONSTITUTION AS A MATTER OF LAW THE CHRISTIAN ACTIVISTS ARE OFFBASE A HALLOWEEN CELEBRATION MAY DISTRESS A CHRISTIAN STUDENT IN PRECISELY THE WAY A CHRISTMAS CELEBRATION DISTRESSES A JEWISH STUDENT NEVERTHELESS THE FIRST AMENDMENT'S ESTABLISHMENT CLAUSE TREATS THE TWO DIFFERENTLY CHURCHSTATE SEPARATION INCORPORATES A MAJORITARIAN CONCEPTION OF CHURCH TO THE MAJORITY CHRISTMAS IS CHURCHLY HALLOWEEN ISN'T AS A MATTER OF RHETORIC THOUGH THE CONSERVATIVE CHRISTIANS ARE ON TO SOMETHING WHEN IT COMES TO PUBLIC EDUCATION THE WORD CENSORSHIP IS VIRTUALLY USELESS CENSORSHIP IMPLIES A NORMALLY UNHINDERED MARKETPLACE OF IDEAS WHEREAS THE CLASSROOM MARKETPLACE IS TIGHTLY COSSETED BY DESIGN SCHOOLS EXIST TO PROMOTE CERTAIN IDEAS OVER OTHERS EVOLUTION OVER CREATIONISM INDUSTRIOUSNESS OVER SLOTH TOLERANCE OVER BIGOTRY STATE REGULATIONS ARE CHOCKABLOCK WITH ONESIDED MANDATES IN CALIFORNIA SCHOOLS THE PRACTICE OF THRIFT SHOULD BE ENCOURAGED TENNESSEE SCHOOLS MUST TEACH THE EVILS OF INTEMPERANCE AND THE IMPORTANCE OF PLANTING AND CULTIVATING FLOWERS SOME IDEAS ARE FLATLY UNWELCOME IN THE CLASSROOM AFTER STUDYING THE HOLOCAUST A FEW YEARS AGO A HIGHSCHOOL GOVERNMENT CLASS IN FAIRFAX COUNTY VA WANTED TO INVITE A NAZI TO PROVIDE A DIFFERENT PERSPECTIVE THE SUPERINTENDENT NIXED THE PROPOSAL APPALLING CENSORSHIP OR A RECOGNITION THAT AS THE LATE YALE LAW PROFESSOR ALEXANDER BICKEL ONCE OBSERVED EQUAL TIME MAY CONNOTE EQUAL LEGITIMACY EVEN ANTICENSORSHIP ORGANIZATIONS DON'T CHAMPION ALL IDEAS PEOPLE FOR THE AMERICAN WAY HAS ATTACKED A HISTORY BOOK THAT SAID THE BIBLE INSPIRED THE CONSTITUTION'S FRAMERS THE NATIONAL COALITION AGAINST CENSORSHIP HAS PRAISED THE OPPONENTS OF CREATIONSCIENCE BIOLOGY TEXTBOOKS RELIGIOUSLY TINGED LESSONS WHICH ARE CONSTITUTIONALLY SUSPECT AREN'T THE ONLY IDEAS WHOSE EXCLUSION GOES UNLAMENTED BY OPPONENTS OF CENSORSHIP ANTICENSORSHIP ACTIVISTS HAVE YET TO RAISE A FUSS ABOUT THE NEW YORK SOCIALSTUDIES TEACHER WHO WAS SUSPENDED FROM TEACHING AFTER SHOWING HIS CLASS AN ANTIABORTION FILM THE STATES THAT HAVE BARRED CHANNEL ONE CLASSROOM NEWSCASTS OR REACHING BACK A BIT FURTHER THE SCHOOL LIBRARIES THAT HAVE DISCREETLY PULLED LITTLE BLACK SAMBO OFF THE SHELVES AS CRITIC GEORGE JEAN NATHAN WROTE IN 1927 THERE ISN'T ONE OF US ONCE HIS LOUD TALK HAS DIED DOWN BUT BELIEVES IN CENSORSHIP IN ONE DEGREE OR ANOTHER IN THE PUBLIC SCHOOLS THAT'S AS IT SHOULD BE ONLY A NIHILIST WOULD WANT CHILDREN TAUGHT THAT EVERY HYPOTHESIS IS EQUALLY VALID EVERY QUESTION UNDECIDED THE REST OF US BELIEVE THAT SOME IDEAS DON'T DESERVE OFFICIAL ENDORSEMENT IN THE GOVERNMENT SCHOOLS SO ARE WE ALL POTENTIAL CENSORS IN THEORY YES IN MODERN USAGE NO THIS NEUTRALSOUNDING TERM CONSTANTLY GETS PINNED ON THE MOSTLY CONSERVATIVE CRITICS OF PROFESSIONAL EDUCATORS BUT ALMOST NEVER ON THE EDUCATORS THEMSELVES OR THEIR ALLIES OUTSIDERS WHO OPPOSE HALLOWEEN CELEBRATIONS ARE CENSORS INSIDERS WHO OPPOSE CHRISTMAS CELEBRATIONS ARE NOT INDEED THE INSIDERS SOMETIMES ASSERT THAT THEIR PROFESSIONAL CREDENTIALS ENTITLE THEM TO ABSOLUTE AUTHORITY OVER THE CURRICULUM TEXTBOOK AUTHOR MORRIS FREEMAN DECLARED IN 1983 THAT SCHOOLBOOKS SHOULD BE CHOSEN BY RESPONSIBLE PROFESSIONALS AND NOT BY SUCH POLITICALLY SENSITIVE COMMITTEES AS SCHOOL BOARDS THE NATIONAL EDUCATION ASSOCIATION'S CENSORSHIP EXPERT DOROTHY MASSIE CONTENDED THAT A SCHOOL SHOULD RETAIN AN EDUCATIONALLY APPROPRIATE ASSIGNMENT EVEN IF 99 OF VOTERS WANT IT DROPPED SUCH PRONOUNCEMENTS BRING TO MIND GEORGE BERNARD SHAW'S OBSERVATION ALL PROFESSIONS ARE CONSPIRACIES AGAINST THE LAITY IT'S MEMBERS OF THE LAITY HOWEVER WHO PAY THE TAXES THAT POINT WAS STRESSED THIS FALL BY OPPONENTS OF CALIFORNIA'S SCHOOL VOUCHER REFERENDUM WHO ARGUED THAT ONLY PUBLIC INSTITUTIONS ANSWERABLE TO THE ELECTORATE SHOULD RECEIVE PUBLIC FUNDS VOUCHERS DECLARED AMERICANS UNITED FOR SEPARATION OF CHURCH AND STATE WOULD BRING ABOUT TAXATION WITHOUT REPRESENTATION THE NEA WARNED THAT PRIVATE SCHOOLS ARE ACCOUNTABLE TO NO ONE BUT THEMSELVES BUT WHAT ABOUT ACCOUNTABILITY IN THE PUBLIC SCHOOLS BY WIELDING THE WORD CENSORSHIP TO DEFLECT CRITICISM EDUCATORS TREAT COMPLAINTS AS VIOLATIONS OF THE FIRST AMENDMENT THAT'S AN AUDACIOUS INVERSION OF THE CONSTITUTION SINCE WHEN HAS THE FIRST AMENDMENT PROHIBITED CITIZEN PROTEST IN ADDITION DEMONIZING CRITICS AS CENSORS A WORD THAT CALLS TO MIND FANATICS AND BIGOTS OFTEN DRIVES THEM TO MATCHING RHETORICAL DEPTHS REASONED DISCOURSE GIVES WAY TO BELLOWING RANCOR MY POINT IS NOT THAT RIGHTWINGERS ARE CORRECT ABOUT HALLOWEEN SECULAR HUMANISM OR ANY OF THE OTHER POLLUTANTS THEY DISCERN IN THE PUBLIC SCHOOLS MANY OF THEIR ARGUMENTS STRIKE ME AS MISGUIDED A FEW SEEM ALTOGETHER BALMY TO REACH THOSE CONCLUSIONS HOWEVER WE MUST ASSESS THE COMPLAINTS ON THE MERITS WE'RE OFTEN DISTRACTED FROM THAT TASK BY THE PURPORTEDLY NEUTRAL CHARGE OF CENSORSHIP WHICH SUGGESTS THAT THE PUBLIC SCHOOL CURRICULUM IS SACROSANCT AND THAT PROTESTS AGAINST IT ARE INHERENTLY ILLICIT WHAT SHOULD OUR PUBLIC SCHOOLS TEACH HOW SHOULD WE BALANCE EDUCATORS' PROFESSIONAL STANDARDS AGAINST THEIR ACCOUNTABILITY TO AN UNPROFESSIONAL ELECTORATE WE COULD CONTEMPLATE THESE ISSUES MORE CLEARLY AND DISCUSS THEM MORE CIVILLY IF WE WOULD SET ASIDE THE NOTION OF CENSORSHIP IN THE PUBLIC SCHOOLS FOR TOO LONG OPPORTUNISTIC CHARGES OF CENSORSHIP HAVE LIKE CENSORSHIP ITSELF SQUELCHED DEMOCRATIC DELIBERATION MR BATES A FELLOW AT THE ANNENBERG WASHINGTON PROGRAM IS THE AUTHOR OF BATTLEGROUND POSEIDON 1993 A BOOK ABOUT THE RELIGIOUS RIGHT AND PUBLIC EDUCATION 9312220122 931222 BUSINESS BRIEF HOECHST AG SUBSIDIARY PLANS TO UPGRADE TWO NORTH AMERICAN PLANTS HOECHST CELANESE CORP SAID ITS TECHNICAL FIBERS GROUP PLANS TO SPEND 100 MILLION BY 1995 TO UPGRADE TWO NORTH AMERICAN PLANTS PRODUCING POLYESTER YARNS FOR TIRE AND MECHANICAL RUBBER GOODS APPLICATIONS HOECHST CELANESE A SUBSIDIARY OF HOECHST AG OF GERMANY IS BASED IN SOMERVILLE NJ ABOUT TWOTHIRDS OF THE NEW CAPACITY WILL BE INSTALLED AT HOECHST CELANESE'S HIGHDENIER POLYESTER YARN MANUFACTURING FACILITY AT SALISBURY NC THE REMAINDER WILL BE AT THE COMPANY'S PLANT AT QUERETARO MEXICO 9312220121 931222 REVIEW & OUTLOOK EDITORIAL PASSIONATE NATIONALISM THE NOTION OF ELECTIONS IN BLOODDRENCHED SERBIA IS MORE THAN A LITTLE BOGGLING BUT THERE IT IS THE SERBS JUST HELD ONE AS NEW POLITICAL SYSTEMS EVOLVE IN FORMER COMMUNIST STATES SUCH AS SERBIA OR RUSSIA IT WILL BE IN THE WEST'S INTERESTS TO TRY TO COME TO GRIPS WITH OUTCOMES THAT UNSETTLE NORMAL SENSIBILITIES CONTRARY TO HOPES SLOBODAN MILOSEVIC DIDN'T HAVE HIS WINGS CLIPPED BY THE SERBIAN PEOPLE AFTER ALL RATHER HIS SOCIALIST PARTY GAINED FURTHER SEATS IN PARLIAMENT IN THIS PAST WEEKEND'S ELECTION IN THIS RESULT WE SEE TWO THINGS THE POWER OF NATIONALISM AND THE FAILURE OF ECONOMIC SANCTIONS TO INFLUENCE POLITICAL OUTCOMES NATIONALISM WASN'T EVEN AN EXPLICIT ISSUE IN THE ELECTION NONE OF THE OPPOSITION PARTIES SERIOUSLY CHALLENGED THE MILOSEVIC POLICY OF CREATING A GREATER SERBIA BY ANNEXING THE SERBIAN POPULATIONS OF CROATIA AND BOSNIA THEY ONLY ARGUED LAMELY THAT THEY WOULD HAVE CONDUCTED ETHNIC CLEANSING WITH LESS RESORT TO BLOODSHED THE FACT THAT NO CANDIDATE WAS WILLING TO SAY THAT THE SERBS ARE SUFFERING BECAUSE OF THEIR OWN BLOODTHIRSTY NATIONALISM SAYS A LOT ABOUT THE POWER OF NATIONALISM THE SERBS ARE INDEED HARDPRESSED BY THE HYPERINFLATION AND SHORTAGES THE WAR HAS BROUGHT BUT QUITE POSSIBLY THEY DRAW COMFORT FROM THE FACT THAT THEIR BOSNIAN MUSLIM NEIGHBORS HAVE SUFFERED MORE A WEEK BEFORE THE SERBS VOTED RUSSIAN VOTERS ALSO RESPONDED TO APPEALS TO THEIR SENSE OF NATIONALITY AND PATRIOTISM BY GIVING THEIR HEAVIEST VOTE TO THE PARTY OF THE WILD DEMAGOGUE VLADIMIR ZHIRINOVSKY MUCH OF EUROPE HAS TRIED HARD IN THE POSTWAR ERA TO DAMP DOWN THE FIRES OF VIOLENT NATIONALISM BUT IT HASN'T ENTIRELY SUCCEEDED IF THESE TWO ELECTIONS ARE A GUIDE PERHAPS THAT SHOULDN'T COME AS A GREAT SURPRISE THE NEED FOR A SENSE OF IDENTITY IS COMMON TO ALL THAT IT CAN ASSUME EXAGGERATED PROPORTIONS AND LEAD TO ARMED COMBAT IS MERELY ONE OF THE LESSONS OF HISTORY THE LAW OF THE JUNGLE GAINS SWAY JUDGING FROM THE POLITICAL MAGIC MESSRS MILOSEVIC AND ZHIRINOVSKY ARE ABLE TO WORK IN BACKWARD RURAL AREAS NATIONALISM SEEMS TO FIND PARTICULARLY FERTILE SOIL IN BENIGHTED REGIONS IN EASTERN EUROPE COMMUNISM SUBMERGED THESE YEARNINGS FOR IDENTITY AND SELFAWARENESS BY MEANS OF REGIMENTATION AND POLICE TERROR IN WESTERN EUROPE THEY WERE SUBMERGED BY PROGRESSIVE MOVES TO LOWER NATIONAL TRADE AND CULTURAL BARRIERS CLEARLY FREEDOM HAS PRODUCED A BETTER RESULT THAN OPPRESSION THAT PERHAPS DERIVES FROM THE FACT THAT UNDER CONDITIONS OF FREEDOM IDENTITY PRIMARILY BECOMES THE PROPERTY OF THE INDIVIDUAL TO DEVELOP AND NURTURE AS BEST SEEN FIT IN THE POSTCOMMUNIST STATES WHERE INDIVIDUALITY WAS SUBORDINATED FOR YEARS TO THE DEMANDS OF THE STATE IT IS MUCH EASIER FOR A DEMAGOGIC MILOSEVIC OR ZHIRINOVSKY TO MOBILIZE POPULATIONS IN A JOINT QUEST FOR IDENTITY THE IMPOSITION OF ECONOMIC SANCTIONS ON THE SERBS BY THE UNITED NATIONS CLEARLY HASN'T QUIETED NATIONALISM DESPITE THE HARDSHIP RATHER SANCTIONS SEEM TO HAVE HEIGHTENED THE SENSE OF SERBIAN IDENTITY BY FOCUSING ON SERBS AS A NATION OR ETHNIC GROUP RATHER THAN ON SERBS AS INDIVIDUALS BUT IS THERE ANY SUBSTITUTE FOR ADDRESSING CONFLICTS IN NATIONAL TERMS THERE ARE SUBSTITUTES BUT PERHAPS NO INSTANT SOLUTIONS THE EUROPEAN COMMUNITY HAS ENCOURAGED THE SUBMERSION OF NATIONAL IDENTITIES INTO A SENSE OF BEING EUROPEAN THE MILITARY OFFICERS AND ARMIES OF NATO HAVE HAD SIMILAR ENCOURAGEMENT AS TO PUNISHING THE SERBS FOR THEIR NATIONALISTIC EXCESSES THERE MAY WELL BE NO OTHER ANSWER NATIONAL MISBEHAVIOR CAN BE ALLOWED NO MORE FREEDOM FROM PUNISHMENT THAN INDIVIDUAL BEHAVIOR IF CIVIL ORDER IS TO BE SECURE IT IS SIMPLY HARDER TO PUNISH EFFECTIVELY AS THE SERBIAN EXPERIENCE HAS SHOWN WE SUSPECT THAT THE ONLY TRUE ANTIDOTE FOR NATIONALISTIC EXCESS IS A STRESS ON THE INHERENT DIGNITY AND POTENTIAL OF FREE MEN AND WOMEN GIVEN THE LONG PERIOD IN WHICH COLLECTIVISM WAS PREACHED DAILY TO THE PEOPLES OF COMMUNIST LANDS THAT WILL TAKE SOME DOING BUT WE HAVE NO DOUBT THAT INDIVIDUALISM THE PRIVATE OWNERSHIP OF PROPERTY AND THE THOUGHTS IN ONE'S OWN MIND IS A FAR MORE ATTRACTIVE CONCEPT TO SELL A FUNDAMENTAL DANGER IS THAT THE ELECTION RESULTS IN SERBIA AND RUSSIA WILL BE MISREAD WHEREAS THE ANSWER TO THE PROBLEMS OF SUCH PLACES IS TO FURTHER OPEN THEM TO FREE EXPRESSION AND FREE MOVEMENT THERE WILL BE A TEMPTATION AMONG POLITICAL LEADERS TO EXPLOIT NATIONALISM AS A UNIFYING FORCE AS HISTORY SHOWS THAT IS DANGEROUS BOTH FOR THOSE WHO DO IT AND FOR THEIR NEIGHBORS THE WEST HAVING LEARNED ITS OWN PAINFUL LESSONS ABOUT MILITANT NATIONALISM SHOULD DO EVERYTHING POSSIBLE TO DISCOURAGE IT 9312220119 931222 PENN CENTRAL ODDLOT PURCHASE CINCINNATI PENN CENTRAL CORP SAID IT WILL PURCHASE ALL ODDLOT SHARES OR SHARES OWNED BY HOLDERS OF 99 OR FEWER COMMON SHARES OWNED AS OF DEC 20 THE COMPANY WITH BUSINESS PRIMARILY IN PROPERTY AND CASUALTY INSURANCE SAID IT WILL PAY THE MARKET PRICE PLUS 5 A SHARE SHAREHOLDERS ACCEPTING THE OFFER WILL NOT BE REQUIRED TO PAY BROKERAGE COMMISSIONS TRANSFER TAXES OR ANY OTHER FEES ON THE SALE OF THEIR SHARES THE OFFER WILL EXPIRE ON JAN 31 1994 UNLESS EXTENDED PENN CENTRAL SHARES CLOSED AT 3050 DOWN 25 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9312220118 931222 COMMODITIES COPPER PRICES CONTINUE TO RALLY ON OPTIMISM OVER US ECONOMIC PROSPECTS TECHNICAL FACTORS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COPPER PRICES CONTINUED TO RALLY ON IMPROVING US ECONOMIC PROSPECTS AND ON TECHNICAL FACTORS TRADERS AND ANALYSTS SAID THE ACTIVE MARCH FUTURES CONTRACT GAINED 070 CENT TO CLOSE AT 82 CENTS A POUND ON NEW YORK'S COMMODITY EXCHANGE COPPER FUTURES PRICES HAVE CLIMBED SOME 10 FROM LEVELS AROUND 7450 CENTS A POUND AT THE END OF NOVEMBER WE CONTINUE TO SEE SOME PRETTY GOOD BUYING INTEREST WHICH CONTINUES TO REFLECT OPTIMISM THAT US ECONOMIC ACTIVITY IS FINALLY STARTING TO ABSORB EXCESS COPPER INVENTORY SAID STEPHEN PLATT SENIOR COMMODITY ANALYST WITH DEAN WITTER IN CHICAGO MANY ANALYSTS NOW PREDICT THAT THE INDUSTRIAL BASE METAL CAN HIT A NEARTERM PRICE TARGET OF 84 CENTS A POUND A MOVE TO THAT LEVEL OR HIGHER WILL ALMOST CERTAINLY BE DRIVEN BY BULLISH BETS FROM COMMODITY FUNDS OR MANAGED POOLS OF INVESTOR'S MONEY THEY SAID SUCH FUNDS WERE CHIEFLY RESPONSIBLE FOR YESTERDAY'S GAINS TRADERS SAID ONE MAJOR CONCERN FOR THE COPPER MARKET REMAINS SLUGGISH ECONOMIC PERFORMANCE IN EUROPE AND JAPAN UNLESS ECONOMIC ACTIVITY PICKS UP ABROAD COPPER'S GAINS NEXT YEAR COULD BE LIMITED THIS UPSIDE MOVE IS PROBABLY SOMEWHAT OVERDONE GIVEN THE ECONOMIC WEAKNESS OVERSEAS SAID MR PLATT WE STILL SEE A SURPLUS OF METAL NEXT YEAR TOTAL SUPPLY AVAILABILITY WILL EXCEED DEMAND BY APPROXIMATELY 250000 TO 300000 METRIC TONS COMPARED TO A SURPLUS OF AROUND 260000 METRIC TONS THIS YEAR THE DEAN WITTER VICE PRESIDENT NOTED THAT YEAREND RALLIES IN COPPER FUTURES WERE NOT UNUSUAL AND THAT THEY TYPICALLY ARE MET WITH SIGNIFICANT SELLING PRESSURE IN THE FIRST QUARTER OTHER ANALYSTS WERE ALSO SKEPTICAL OF THE PROSPECTS FOR AN EXTENDED RALLY FROM A STRICTLY FUNDAMENTAL PERSPECTIVE I THINK THE MARKET HAS MOVED UP TOO QUICKLY AND COULD BE SET FOR A MILD CORRECTION SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST AT MERRILL LYNCH IN NEW YORK THE MERRILL LYNCH STRATEGIST NOTED HOWEVER THAT COPPER WILL MOVE HIGHER LONGER TERM COPPER FUTURES MIGHT AVERAGE AS HIGH AS 90 CENTS A POUND IN 1994 WITH YEARLY HIGHS EXCEEDING 1 HE SAID THE ACTIVE COPPER FUTURES CONTRACT HAS AVERAGED 8718 CENTS A POUND IN 1993 BERNARD SAVAIKO SENIOR COMMODITY ANALYST WITH PAINEWEBBER SAID THAT JAPANESE AND CHINESE BUYING OF THE METAL HAS RESUMED AND HAS PROVIDED A FLOOR UNDER THE MARKET IN THE MID TO LOW70 CENTSAPOUND RANGE THEY'RE BUYING NOT JUST ON PULLBACKS IN PRICE BUT ARE WILLING TO FOLLOW THE MARKET HIGHER HE SAID BUT GIVE OR TAKE A PENNY OR TWO WE'VE PRETTY MUCH EXHAUSTED THE UPSIDE POTENTIAL FOR THIS YEAR THE MARKET MAY HAVE TO CATCH ITS BREATH FOR A WHILE AND DIP BACK DOWN TO 78 CENTS IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS PRICES OF MOST GRAIN AND SOYBEAN FUTURES CONTRACTS ROSE SLIGHTLY IN QUIET TRADING FUELED BY CONTINUING FALLOUT FROM THE MIDWEST CROP DISASTER THE CORN CONTRACT FOR MARCH DELIVERY ROSE HALF A CENT A BUSHEL TO SETTLE AT A LIFEOFCONTRACT HIGH OF 29875 A BUSHEL GRAIN TRADERS ARE DIVIDED OVER WHETHER CORN PRICES CAN MOVE MUCH HIGHER IN THE NEAR TERM THERE ARE SIGNS FOR EXAMPLE THAT THE RELATIVELY HIGH PRICE IS ENCOURAGING CORN FARMERS TO SELL MORE OF THEIR RECENTLY HARVESTED CROP THAT WOULD TEND TO DEPRESS PRICES US SOYBEAN PRICES WERE SUPPORTED BY REPORTS THAT EXCESSIVE RAIN IS SLOWING THE PLANTING OF SOYBEANS IN ARGENTINA WHEAT PRICES WERE SUPPORTED BY REPORTS OF CONTINUING INTEREST AMONG NORTH AFRICAN NATIONS IN BUYING SUBSIDIZED US WHEAT ONE ISSUE DEVELOPING ON THE HORIZON IS THE INFLUX OF CANADIAN WHEAT INTO THE US IN RECENT MONTHS RICHARD LOEWY PRESIDENT OF AGRESOURCE CO IN CHICAGO IS ESTIMATING THE US IMPORTED A RECORD 314 MILLION BUSHELS OF WHEAT DURING THE THREE MONTH PERIOD ENDED NOV 30 BUSINESSES RANGING FROM CATTLE FEEDLOTS ON THE SOUTHERN PLAINS AND EAST COAST MILLERS TO US PASTA PRODUCERS ARE REPORTEDLY INTERESTED IN BUYING CANADIAN GRAIN THE MIDWEST CROP DISASTER LAST SUMMER LEFT THE US WITH SUCH TIGHT SUPPLIES THAT COMPANIES ARE LOOKING OUTSIDE THE COUNTRY THE HIGH PRICE OF CORN FOR EXAMPLE IS SPURRING SOME FEEDLOT OPERATIONS TO SUBSTITUTE WHEAT IN CATTLE RATIONS THE SURGE OF CANADIAN WHEAT INTO THE US MIGHT BECOME CONTROVERSIAL BECAUSE THE AGRICULTURE DEPARTMENT SPENDS HEAVILY TO SUBSIDIZE US WHEAT EXPORTS ENERGY NATURAL GAS FUTURES PRICES FELL SHARPLY AS CONTRACTS CAME UNDER HEAVY SELLING PRESSURE YESTERDAY WITH THE PRICE OF NATURAL GAS FOR JANUARY DELIVERY FALLING BY 17 CENTS PER MILLION BRITISH THERMAL UNITS TO 2002 THE DECLINE MORE THAN WIPED OUT THE STEADY GAIN OF 159 CENTS PER MILLION BRITISH THERMAL UNITS REGISTERED OVER THE PRIOR THREE TRADING SESSIONS THE PRICE OF NATURAL GAS FOR FEBRUARY DELIVERY DECLINED BY ITS ALLOWABLE LIMIT OF 10 CENTS PER MILLION BRITISH THERMAL UNITS TO 1842 TRADERS SAY PRICES MAY BE POISED TO FALL EVEN FURTHER BECAUSE GAS IS EXPENSIVE COMPARED WITH RESIDUAL FUEL ITS PRIMARY COMPETITOR IN THE ENERGY SECTOR PRICES HAD BEEN PROPPED UP IN RECENT DAYS BY FORECASTS OF UNUSUALLY COLD TEMPERATURES THROUGH THIS PAST WEEKEND ACROSS MOST OF THE NATION BUT WITH THE COLD ABATING IN SOME OF THOSE REGIONS TRADERS REALIZED THAT THERE IS PLENTY OF GAS IN STORAGE 9312220117 931222 WHO'S NEWS LIZ CLAIBORNE PROMOTIONS NEW YORK WOMEN'S APPAREL MAKER LIZ CLAIBORNE INC ANNOUNCED THREE EXECUTIVE PROMOTIONS INCLUDING A NEW PRESIDENT FOR ITS LARGEST UNIT LIZ CLAIBORNE MISSES AND PETITE SPORTSWEAR LINDA LARSEN GERMAN 42 YEARS OLD WAS NAMED PRESIDENT OF THE UNIT SUCCEEDING HANK SINKEL 48 WHO BECOMES PRESIDENT CORPORATE SALES GROUP OF THE US DIVISION MS GERMAN WAS MOST RECENTLY PRESIDENT OF THE COMPANY'S LARGESIZE BUSINESS ELISABETH ADDITIONALLY THE COMPANY SAID ROBERT BERNARD 43 LEAVES HIS POSITION AS CORPORATE SENIOR VICE PRESIDENT OF DOMESTIC SALES TO EXPAND HIS ROLE AS PRESIDENT OF THE INTERNATIONAL DIVISION 9312220116 931222 DIVIDEND NEWS CITIZENS FIRST BANCORP CITIZENS FIRST BANCORP GLEN ROCK NJ REINSTATED ITS DIVIDEND DECLARING A DIVIDEND OF 425 CENTS A SHARE PAYABLE FEB 1 TO STOCK OF RECORD JAN 14 THE PAYMENT IS THE FIRST ON COMMON STOCK IN 3 1/2 YEARS AN OFFICIAL SAID THE COMPANY INTENDS TO PAY DIVIDENDS ON A QUARTERLY BASIS ASSUMING FUTURE PERFORMANCE SUPPORTS THE POLICY ALLAN D NICHOLS CHAIRMAN AND CHIEF EXECUTIVE SAID THE DIVIDEND WAS POSSIBLE BECAUSE OF A RECENT RIGHTS OFFERING IMPROVED EARNINGS AND A MARKED REDUCTION IN NONPERFORMING ASSETS THE BANK HOLDING COMPANY AT SEPT 30 HAD ASSETS OF 25 BILLION 9312220115 931222 BUSINESS BRIEF VF CORP CENTRAL CORSETERA IS BOUGHT BY PENNSYLVANIA COMPANY APPAREL MAKER VF CORP SAID IT ACQUIRED CENTRAL CORSETERA SA OF BARCELONA SPAIN TERMS WEREN'T DISCLOSED VF BASED IN WYOMISSING PA ACQUIRED THE COMPANY THROUGH ITS SPANISH SUBSIDIARY VIVES VIDAL VF SAID CENTRAL CORSETERA IS A SMALL COMPANY AND DECLINED TO DISCLOSE REVENUE FIGURES THE SPANISH CONCERN IS A MAKER OF WOMEN'S INTIMATE APPAREL SOLD UNDER THE BELCOR BRAND NAME VF CORP IS A MAKER OF JEANSWEAR INTIMATE APPAREL AND CHILDREN'S WEAR UNDER THE BRAND NAMES LEE WRANGLER MARITHE & FRANCOIS GIRBAUD JANTZEN AND VANITY FAIR AMONG OTHERS 9312220114 931222 ECONOMY SURVEY DISCLOSES US COMPANIES PLAN TO BOOST CAPITAL SPENDING 54 IN '94 BY DAVID MULHOLLAND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US BUSINESSES DON'T PLAN TO STOP THEIR SPENDING SPREE ON NEW PLANT AND EQUIPMENT NEXT YEAR THE COMMERCE DEPARTMENT IN A SURVEY CONDUCTED IN OCTOBER AND NOVEMBER FOUND THAT COMPANIES EXPECT TO INCREASE CAPITAL SPENDING 54 IN 1994 AFTER A 7 RISE THIS YEAR BUT ADJUSTED FOR PRICE CHANGES MOST NOTABLY AN ANTICIPATED CONTINUING DECLINE IN COMPUTER PRICES SPENDING IS EXPECTED TO INCREASE 7 IN 1994 AFTER AN 85 RISE THIS YEAR THE SURVEY GIVES THE DEPARTMENT'S FIRST GLIMPSE AT PLANTANDEQUIPMENT SPENDING PLANS FOR NEXT YEAR THE ANTICIPATED 1993 TOTAL IS ESSENTIALLY UNCHANGED FROM THE 71 INCREASE COMPANIES SAID THEY EXPECTED THREE MONTHS EARLIER THE DEPARTMENT'S QUARTERLY SURVEYS DO A BETTER JOB OF REVEALING THE MOOD OF THE BUSINESS COMMUNITY THAN PROPHESYING THE FUTURE MANY ECONOMISTS AGREE THERE IS A TENDENCY FOR REAL CAPITAL SPENDING TO BE HIGHER THAN EXPECTED IN GOOD YEARS AND LOWER IN BAD YEARS BRIAN WESBURY CHIEF ECONOMIST FOR GRIFFIN KUBIK STEPHENS & THOMPSON SAID THE ECONOMY HAS CAUGHT A TAIL WIND AND WE'RE MOVING INTO '94 AT A GOOD CLIP BUT HE WARNED THAT COMPANIES AREN'T INVESTING IN EXPANDED CAPACITY AS QUICKLY AS PRODUCTION IS INCREASING SUGGESTING THERE COULD BE PRODUCTION BOTTLENECKS NEXT YEAR MANUFACTURERS OF DURABLE GOODS PRODUCTS EXPECTED TO LAST THREE YEARS OR MORE GREW SLIGHTLY MORE OPTIMISTIC IN THE LAST THREE MONTHS CONTINUING A STEADY TREND AT THE END OF LAST YEAR DURABLEGOODS MAKERS PLANNED ON A 27 INCREASE IN PLANTANDEQUIPMENT SPENDING FOR 1993 BUT IN THE LATEST SURVEY THEY PUT THAT TOTAL AT 111 THEY EXPECT CAPITAL SPENDING TO SLOW TO 42 IN 1994 AUTO MANUFACTURERS ANTICIPATE A 431 RISE IN SPENDING THIS YEAR ACCORDING TO THE LATEST SURVEY THAT'S UP FROM THE 395 THEY EXPECTED THREE MONTHS AGO OTHER BIG INCREASES ARE EXPECTED BY ELECTRICAL MACHINERY STONE CLAY AND GLASS COMPANIES BUT SPENDING PLANS BY AIRCRAFT MANUFACTURERS ARE DOWN 237 FOR THE YEAR THE TREND IN NONDURABLE GOODS WAS JUST THE OPPOSITE A YEAR AGO COMPANIES IN THAT SECTOR ANTICIPATED A 71 RISE IN CAPITAL SPENDING FOR 1993 BUT THAT HAS DROPPED STEADILY IN THE LATEST SURVEY THEY PROJECTED A 27 DECLINE FOR 1993 FOLLOWED BY A 34 REBOUND IN 1994 RUBBER PETROLEUM AND CHEMICALS COMPANIES' SPENDING PLANS WERE ALL DOWN IN THE LATEST SURVEY NONMANUFACTURING COMPANIES PLAN AN 88 RISE IN CAPITAL SPENDING THIS YEAR THE SAME AS IN THE PREVIOUS SURVEY FOR 1994 THEY ANTICIPATE A 62 INCREASE MOST ECONOMISTS AGREE THAT COMPANIES ARE TAKING ADVANTAGE OF LOW INTEREST RATES AND HIGH STOCK PRICES TO INVEST IN COMPUTERS AND OTHER EQUIPMENT TO INCREASE EFFICIENCY HERE IS THE BREAKDOWN BY MAJOR INDUSTRIES OF CAPITAL SPENDING ESTIMATES FOR CURRENT AND FUTURE PERIODS FOR COMPARABILITY WITH ANNUAL TOTALS THE QUARTERLY FIGURES ARE AT SEASONALLY ADJUSTED ANNUAL RATES IN BILLIONS OF DOLLARS 9312220113 931222 FINANCING BUSINESS GULF CANADA RESOURCES LTD GULF CANADA RESOURCES LTD CALGARY ALBERTA SAID IT FILED A PRELIMINARY SHELF PROSPECTUS WITH THE SECURITIES AND EXCHANGE COMMISSION AND CANADIAN SECURITIES REGULATORS TO OFFER AS MUCH AS 400 MILLION OF SENIOR SUBORDINATED DEBT IN THE US DURING THE NEXT TWO YEARS THE OILANDGAS PRODUCER SAID THE FILING SUPPLEMENTS ITS EXISTING US SHELF REGISTRATION FOR AS MUCH AS 375 MILLION OF SENIOR DEBT IT SAID IT PLANS TO USE PROCEEDS FROM EITHER ISSUE FOR GENERAL CORPORATE PURPOSES INCLUDING REPAYMENT OF SENIOR DEBT 9312220112 931222 US RESERVE ASSETS DECLINED IN NOVEMBER WASHINGTON US OFFICIAL RESERVE ASSETS FELL 508 MILLION IN NOVEMBER TO 7404 BILLION THE TREASURY DEPARTMENT SAID LAST MONTH'S DECREASE COMPARED WITH A 129 BILLION FALL IN RESERVE ASSETS IN OCTOBER TO 7455 BILLION THE DEPARTMENT SAID THE NATION'S HOLDINGS OF FOREIGN CURRENCIES DECREASED 478 MILLION IN NOVEMBER TO 4207 BILLION WHILE ITS GOLD RESERVES FELL 2 MILLION TO 1105 BILLION US HOLDINGS OF IMF SPECIAL DRAWING RIGHTS LAST MONTH ROSE 53 MILLION TO 909 BILLION AND ITS RESERVE POSITION AT THE IMF FELL 81 MILLION TO 1183 BILLION 9312220111 931222 WHO'S NEWS RIGHT MANAGEMENT CONSULTANTS INC RIGHT MANAGEMENT CONSULTANTS INC PHILADELPHIA RICHARD J PINOLA WAS NAMED CHAIRMAN OF THIS CAREER MANAGEMENT AND HUMAN RESOURCES CONSULTING FIRM EFFECTIVE JAN 1 HE SUCCEEDS FRANK P LOUCHHEIM 70 WHO REMAINS A DIRECTOR AND BECOMES FOUNDING CHAIRMAN MR PINOLA 47 CURRENTLY CHIEF EXECUTIVE OFFICER AND PRESIDENT WILL BE SUCCEEDED AS PRESIDENT BY JOSEPH T SMITH 57 WHO CONTINUES AS CHIEF OPERATING OFFICER 9312220110 931222 LETTERS TO THE EDITOR STOP PROTECTING CIGARETTE MAKERS SURGEON GENERAL ELDERS WANTS TO USE EVERY MEANS POSSIBLE WORLDWIDE NOV 24 TO PROTECT PEOPLE FROM THE HEALTH HAZARDS OF CIGARETTES BUT THE PAST HAS PROVEN THAT DISCLAIMERS AND WARNINGS ON PACKAGES AND ADVERTISEMENTS ARE SIMPLY NOT SUFFICIENT CONGRESS NEEDS TO PASS LEGISLATION ALLOWING THE COURT SYSTEM AND CIVIL LITIGATION TO ACT AS A DETERRENT TO THE PROMOTION MARKETING AND SALE OF ONE OF THE MOST DANGEROUS PRODUCTS AVAILABLE PRINTED WARNINGS ARE THE TYPE OF DEVICE THAT HAS BEEN USED FOR YEARS BY TOBACCO COMPANIES TO PROTECT THEMSELVES FROM LAWSUITS BY THE FAMILIES OF PEOPLE KILLED BY CIGARETTES INSTEAD CONGRESS SHOULD ENACT LEGISLATION SAYING THAT THESE DISCLAIMERS SHOULD NOT INSULATE MANUFACTURERS FROM LIABILITY MORE PEOPLE ARE KILLED BY TOBACCO THAN BY ILLEGAL HANDGUNS 9312220108 931222 REVIEW & OUTLOOK EDITORIAL ASIDES KLAN CHRISTMAS III A SECOND FEDERAL JUDGE IN OHIO RULED YESTERDAY THAT THE KU KLUX KLAN CAN ERECT A KLAN CROSS THIS ONE AT THE COLUMBUS STATEHOUSE DISTRICT JUDGE JAMES GRAHAM ADMITTED THE IRONY THAT THE KKK WOULD WANT TO ERECT A SYMBOL OF THE PRINCE OF PEACE BUT HE FELT FREEDOM OF SPEECH WOULD BE MEANINGLESS IF IT DID NOT APPLY EQUALLY TO ALL GROUPS POPULAR AND UNPOPULAR ALIKE MAYBE THE KLAN SHOULD INFUSE THE FIRST AMENDMENT WITH EVEN MORE MEANING BY PETITIONING TO ERECT A TREE BRANCH WITH A HANGMAN'S NOOSE HOW ABOUT A SMALL BURNEDOUT SCHOOLHOUSE OR A DISPLAY OF THE ARYAN NATION'S FAVORITE IMAGES PARADOXICALLY WE SUSPECT THESE DECISIONS WILL CONVINCE MANY THAT THE FIRST AMENDMENT HAS LOST ITS MEANING 9312220107 931222 SEC TO FILE ADMINISTRATIVE COMPLAINT AGAINST MERRILL LYNCH IN FLORIDA CASE BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION IS PREPARING AN ADMINISTRATIVE COMPLAINT AGAINST MERRILL LYNCH & CO IN CONNECTION WITH ITS DEALINGS WITH A NOWDEFUNCT FLORIDA INSURER AND ANOTHER FIRM ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER MERRILL LYNCH WILL SETTLE THE CASE WHEN IT'S FILED PERHAPS BEFORE YEAREND THE SEC IS EXPECTED TO TAKE ENFORCEMENT ACTION LATER AGAINST OTHER PARTIES INVOLVED IN THE MATTER THE SEC NEARING THE END OF A LENGTHY INVESTIGATION AND PROTRACTED NEGOTIATIONS WITH THE SECURITIES FIRM IS EXPECTED TO FILE AN ADMINISTRATIVE ACTION ALLEGING THAT MERRILL LYNCH VIOLATED RECORDKEEPING REQUIREMENTS IN ITS TREASURY BOND AND JUNKBOND DEALING WITH GUARANTEE SECURITY LIFE INSURANCE CO JACKSONVILLE FLA AND IN SIMILAR TRANSACTIONS WITH ANOTHER COMPANY THESE PEOPLE SAID DETAILS ON THE OTHER COMPANY WEREN'T AVAILABLE PAUL HUEYBURNS AN ASSISTANT SEC ENFORCEMENT DIRECTOR DECLINED TO COMMENT ON THE MATTER AS DID A SPOKESMAN FOR MERRILL LYNCH AN ADMINISTRATIVE COMPLAINT ALLEGING BOOKS AND RECORDS VIOLATIONS WOULD BE A RELATIVELY FAVORABLE OUTCOME FOR MERRILL LYNCH WHICH HAS FACED THE POSSIBILITY OF TOUGHER CHARGES THE SEC WAS TOLD ABOUT MERRILL LYNCH'S INVOLVEMENT WITH THE FLORIDA INSURANCE COMPANY BY FORMER JUNK BOND KING MICHAEL MILKEN HE REPORTEDLY REPRESENTED THE FIRM AS HAVING PARKED SECURITIES FOR A CUSTOMER POSSIBLY TO MISREPRESENT THE CUSTOMER'S FINANCIAL PERFORMANCE EARLIER THIS YEAR MERRILL LYNCH WAS SUED BY THE RESOLUTION TRUST CORP AND FLORIDA INSURANCE REGULATORS IN CONNECTION WITH ITS DEALINGS WITH THE FLORIDA INSURER A TRANSMARK USA INC UNIT THAT WAS DECLARED INSOLVENT AND TAKEN OVER BY FLORIDA AUTHORITIES IN 1991 MERRILL LYNCH STEADFASTLY HAS DENIED THE ALLEGATIONS IN THOSE SUITS THAT IT ENGAGED IN PHANTOM TRADES TO HELP MASK THE INSURER'S FINANCIAL PROBLEMS AT ISSUE ARE A SERIES OF YEAREND BOND TRADES IN THE MID1980S INVOLVING HUNDREDS OF MILLIONS OF DOLLARS THE INSURER SOLD JUNK BONDS TO MERRILL LYNCH AT YEAREND AND THEN BOUGHT THEM BACK AT THE START OF THE NEXT YEAR MERRILL LYNCH SIMULTANEOUSLY SOLD TREASURY SECURITIES TO THE INSURER AT YEAREND AND REPURCHASED THEM EARLY THE NEXT YEAR MERRILL LYNCH TOLD THE SENATE PERMANENT INVESTIGATIONS SUBCOMMITTEE WHICH HELD HEARINGS LAST YEAR ON THE MATTER THAT THE YEAREND BOND TRANSACTIONS WERE FULLY REPORTED TO FLORIDA INSURANCE AUTHORITIES IT SAID FULL DISCLOSURE WOULD BE INCONSISTENT WITH ANY PARKING SCHEME MERRILL LYNCH CONFIRMED LAST YEAR IT HAD PROVIDED THE JUSTICE DEPARTMENT WITH INFORMATION ON THE BOND TRADES BUT A SPOKESMAN FOR THE FIRM SAID YESTERDAY THAT WE ARE NOT A TARGET OF ANY CRIMINAL INVESTIGATION 9312220105 931222 POSTAL SERVICE LEANS TO SEEKING 103 RATE GAIN ACROSSTHEBOARD PROPOSAL WOULD RAISE THE COST OF A LETTER TO 32 CENTS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TOP US POSTAL SERVICE EXECUTIVES ARE LEANING TOWARD PROPOSING A 103 ACROSSTHEBOARD INCREASE IN MAILING RATES A MOVE THAT WOULD RAISE THE COST OF SENDING A TYPICAL LETTER FIRST CLASS TO 32 CENTS OFFICIALS FAMILIAR WITH THE PROCESS SAID THAT THE INCREASE WHICH WOULDN'T GO INTO EFFECT UNTIL 1995 COULD BE PROPOSED TO THE POSTAL SERVICE'S BOARD OF GOVERNORS AS EARLY AS JANUARY OFFICIALS INSIDE AND OUTSIDE THE POSTAL SERVICE CAUTIONED THAT IT IS TOO EARLY TO SAY WHETHER POSTMASTER GENERAL MARVIN RUNYON AND HIS SENIOR TEAM HAVE DEFINITIVELY DECIDED TO PUSH THE PROPOSAL THAT JUDGMENT IS EXPECTED TO BE MADE IN THE NEXT WEEK OR SO THAT IS ONE OF THE APPROACHES THAT POSTAL MANAGEMENT HAS BEEN LOOKING AT SAID AGENCY SPOKESMAN FRANK BRENNAN BUT ANY DECISION WILL BE MADE BY THE GOVERNORS THAT DECISION WILL PROBABLY COME IN THE EARLY PART OF NEXT YEAR BUSINESS OFFICIALS IMMEDIATELY EMBRACED THE PROPOSAL PARTICULARLY ITS ACROSSTHEBOARD FEATURE ARTHUR SACKLER MANAGING DIRECTOR OF THE MAILERS COUNCIL A GROUP OF THE NATION'S BIGGEST MAILERS SAID COUNCIL MEMBERS WOULD SUPPORT A 103 ACROSSTHEBOARD INCREASE BUT HE CAUTIONED THAT IF IT GETS BEYOND THAT OUR CONSENSUS BREAKS DOWN BUSINESS GROUPS ARE BACKING THE CONCEPT BECAUSE THEY BELIEVE IT WOULD HELP TEMPER THE SIZE OF ANY PROPOSED BOOST IN THE PAST THE AGENCY HAS SET DIFFERENT RATE INCREASES FOR THE VARIED CLASSES OF MAIL DEPENDING ON THE AGENCY'S NEEDS BUT THOSE VARIED RATE PROPOSALS OFTEN WIND UP AS THE CENTERPIECE OF NASTY AND COSTLY LEGAL BATTLES AMONG CONSUMER GROUPS BUSINESS MAILERS NONPROFIT ORGANIZATIONS AND OTHERS OVER WHO SHOULD BEAR THE HEAVIEST BURDENS THE MOST RECENT POSTAL RATE INCREASE TOOK EFFECT IN FEBRUARY 1991 WHEN THE COST OF MAILING A FIRSTCLASS LETTER ROSE FOUR CENTS TO 29 CENTS ANY PROPOSAL BY POSTAL SERVICE MANAGEMENT WOULD STILL LEAVE IT SEVERAL STEPS FROM REALITY THE PLAN WOULD REQUIRE THE APPROVAL OF THE BOARD OF GOVERNORS WHICH IS MADE UP OF A CROSSSECTION OF CONSUMERS AND BUSINESS PEOPLE THE BOARD HAS BEEN WAITING TO SEE HOW THE AGENCY'S FINANCES HAVE BEEN FARING UNDER THE SEVERE COSTCUTTING MOVES PUSHED BY MR RUNYON OFFICIALS CLOSE TO THE AGENCY SAID FOR THE FIRST TWO MONTHS OF THE FISCAL YEAR THAT BEGAN IN OCTOBER PEOPLE FAMILIAR WITH THE PROCESS SAY THE COSTCUTTING PLANS WERE WORSE THAN EXPECTED THAT PROMPTED MR RUNYON TO VOW TO CUT COSTS FURTHER AT THE AGENCY'S WASHINGTON HEADQUARTERS AND TO PRESS MANAGERS NATIONWIDE TO STICK TO TIGHT BUDGET CONSTRAINTS IF THE BOARD APPROVES THE RATE INCREASE THE INDEPENDENT POSTAL RATE COMMISSION HAS AS LONG AS 10 MONTHS TO DETERMINE WHETHER THE BOOST IS FAIR OR SHOULD BE CHANGED THE COMMISSION'S RECOMMENDATION IS THEN SENT BACK TO THE BOARD OF GOVERNORS WHICH VOTES ON THE PROPOSAL A SECOND TIME IN RECENT YEARS THE POSTAL SERVICE HAS FACED COMPETITION FROM VIRTUALLY EVERY FORM OF MEDIA FACSIMILE MACHINES HAVE BECOME INCREASINGLY POPULAR AS HAVE OVERNIGHT MAIL SERVICES VIDEO SHOPPING AND TELEMARKETING ALL HAVE BEEN CHIPPING AWAY AT TRADITIONAL MAILING SERVICES AND ARE EXPECTED TO CONTINUE TO DO SO AT THE SAME TIME CONGRESS RECENTLY VOTED TO CUT BACK THE AGENCY'S SUBSIDY FOR NONPROFIT MAIL FORCING THE POSTAL SERVICE TO BOOST RATES FOR THOSE MAILERS THE POSTAL SERVICE IS PROJECTING A NET LOSS OF 13 BILLION FOR THE YEAR ENDING SEPT 30 1994 9312220104 931222 HUNTWAY WILL PAY 700000 FINE TO SETTLE CHARGES AGAINST UNIT VALENCIA CALIF HUNTWAY PARTNERS LP SAID IT WILL PAY A PENALTY OF 700000 AS PART OF A GLOBAL SETTLEMENT WITH ARIZONA WHICH HAD CHARGED THE COMPANY'S SUNBELT REFINING CO LP SUBSIDIARY WITH ENVIRONMENTAL VIOLATIONS THE COMPANY SAID IT WILL PAY THE FINE OVER SEVEN YEARS WITHOUT INTEREST AND WILL MAKE CERTAIN ENVIRONMENTAL IMPROVEMENTS AT ITS ARIZONA REFINERY THE FACILITY WHICH PRODUCES ASPHALT DIESEL FUEL AND JET FUEL WAS SHUT DOWN TEMPORARILY IN AUGUST IN THE FACE OF WEAK MARKET CONDITIONS AND COSTS RELATED TO THE STATE INVESTIGATION AND LAWSUIT THE SETTLEMENT WHICH CONSISTS OF A CIVIL CONSENT JUDGMENT AND A PLEA AGREEMENT WAS APPROVED BY THE ARIZONA STATE COURT THE US ATTORNEY'S OFFICE AND THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY HAVE REVIEWED THE SETTLEMENT AND DECLINED TO BRING FEDERAL CHARGES A SPOKESMAN IN THE ARIZONA ATTORNEY GENERAL'S OFFICE SAID HUNTWAY TOOK A 16 MILLION ONETIME CHARGE RELATED TO THE REFINERY IN THE QUARTER ENDED JUNE 30 AND SAID IT MAY SELL THE FACILITY REOPEN IT OR OPERATE IT FOR OTHERS 9312220103 931222 LETTERS TO THE EDITOR JORGEN LEHMANN'S WORK NOT TAINTED BY NAZISM I AM THE AUTHOR OF THE FORGOTTEN PLAGUE WHICH YOU REVIEWED ON YOUR SEPT 7 LEISURE & ARTS PAGE I AM VERY GRATEFUL TO YOU AND TO DR JEROME E GROOPMAN OF HARVARD MEDICAL SCHOOL FOR THE EXCELLENT REVIEW UNFORTUNATELY THERE WAS A SERIOUS ERROR OF FACT IN THE REVIEW AND I HAVE BEEN RECEIVING LETTERS FROM JORGEN LEHMANN'S RELATIVES IN SWEDEN POINTING THIS OUT THE REVIEW STATED THAT LEHMANN WAS A GERMAN RESEARCHER WHOSE WORK WAS CONDUCTED UNDER THE NAZI REGIME YOU ALSO STATE THAT HIS FAILURE TO SHARE THE NOBEL PRIZE MAY HAVE BEEN CAUSED BY HIS RESEARCH BEING TAINTED BY FASCISM IN FACT JORGEN LEHMANN WAS SWEDISH NOT GERMAN INDEED DURING THE WAR BOTH LEHMANN AND HIS WIFE GAVE CONSIDERABLE SUPPORT TO JEWISH REFUGEES IN SWEDEN LEHMANN'S WORK WAS NOT IN ANY WAY TAINTED BY FASCISM NOR DID IT HAVE ANY CONNECTION AT ALL WITH GERMANY THE DIFFICULTY HAS ALMOST CERTAINLY ARISEN BECAUSE EITHER DR GROOPMAN OR WHOEVER EDITED THE ARTICLE CONFUSED JORGEN LEHMANN WITH GERHARD DOMAGK DOMAGK CERTAINLY WORKED IN GERMANY DURING THE NAZI REGIME BUT HE WAS ARRESTED BY THE GESTAPO AND COULDN'T IN ANY WAY BE MISUNDERSTOOD AS BEING TAINTED BY FASCISM DOMAGK HAD ALREADY BEEN AWARDED THE NOBEL PRIZE IN 1939 AND WAS NOT IN THE RUNNING FOR TUBERCULOSIS WORK I AM AFRAID THIS ASPECT OF THE REVIEW IS COMPLETELY MISTAKEN AND HAS GIVEN GREAT OFFENSE TO LEHMANN'S RELATIVES 9312220101 931222 CREDIT MARKETS PRICES OF TREASURYS RECOVER FROM EARLY LOSSES END LITTLE CHANGED AFTER TWOYEAR NOTE AUCTION BY THOMAS D LAURICELLA AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK BOLSTERED BY STRONG DEMAND AT THE GOVERNMENT'S AUCTION OF NEW TWOYEAR NOTES AND HEARTENED BY NEWS SUGGESTING HOLIDAY RETAIL SALES REMAIN SLUGGISH US TREASURY NOTES AND BONDS RECOVERED FROM EARLY LOSSES TO FINISH LITTLE CHANGED YESTERDAY THE BENCHMARK 30YEAR TREASURY BOND DROPPED LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH A 1000 FACE VALUE TO 99 4/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 631 FROM 630 ON MONDAY OTHER MATURITIES POSTED SMALLER LOSSES OR WERE UNCHANGED ON THE DAY AT ONE STAGE THE PRICE OF THE 30YEAR BOND WAS DOWN MORE THAN 3/4 POINT LIFTING ITS YIELD TO 635 ITS HIGHEST SINCE LATE NOVEMBER SPURRING THOSE DECLINES YESTERDAY MORNING WERE FEARS AMONG DEALERS THAT THEY WOULD BE UNABLE TO FIND BUYERS FOR THE TREASURY DEPARTMENT'S AUCTION OF 17 BILLION IN TWOYEAR NOTES MOST INVESTORS HAVE CLOSED THEIR BOOKS FOR YEAR END AND WITH THE TWOYEAR NOTE SETTLING ON DEC 31 ACCOUNTS WERE LARGELY UNINTERESTED IN THE AUCTION AS A RESULT DEALERS PUSHED THE YIELD ON THE TWOYEAR NOTE HIGHER DURING THE MORNING TO A PEAK OF 429 IN AN EFFORT TO MAKE THE ISSUE MORE PALATABLE TO UNDERWRITE IN THE END TRADERS DECIDED THAT THE TWOYEAR NOTE WAS ATTRACTIVELY PRICED THE MARKET ADJUSTED TO THE FACT THAT DUE TO THE TIME OF THE YEAR THERE WASN'T GOING TO BE BIG RETAIL DEMAND SAID MEAD BRIGGS HEAD OF RISK TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES SO WE PUSHED THE YIELD UP TO LEVELS WHICH WERE ACCEPTABLE AND THE AUCTION WENT FAIRLY WELL THE TREASURY SOLD THE TWOYEAR NOTES AT A YIELD OF 428 A BIT LOWER THAN MOST ON WALL STREET HAD EXPECTED IN ADDITION TO THE SLIGHTLY LOWERTHANEXPECTED YIELD THE DETAILS OF THE AUCTION RESULTS SHOWED FAIRLY DECENT BIDDING MARKET WATCHERS SAID THE BIDTOCOVER RATIO A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS SUBMITTED WITH THE NUMBER ACCEPTED WAS ON THE HIGH SIDE AT 278TO1 COMPARED WITH AN AVERAGE OF 263TO1 OVER THE LAST 12 TWOYEAR NOTE AUCTIONS NONCOMPETITIVE BIDS WHICH TYPICALLY ARE PLACED BY INVESTORS OUTSIDE THE WALL STREET DEALER COMMUNITY ALSO WERE STRONG AT 793 MILLION COMPARED WITH 585 MILLION AT THE LAST AUCTION AND AN AVERAGE OVER THE PAST 12 AUCTIONS OF 842 MILLION YOU'D HAVE TO CHARACTERIZE IT AS A RELATIVELY GOOD AUCTION SAID DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS BY THE END OF TRADING FOLLOWTHROUGH DEMAND LEFT THE YIELD ON THE WHENISSUED TWOYEAR NOTE AT 425 COMPARED WITH 426 ON MONDAY EVEN AS THE MARKET WAS BREATHING A SIGH OF RELIEF OVER THE AUCTION BUYERS WERE ENCOURAGED BY NEWS SUGGESTING RETAIL SALES REMAINED WEAK AS THE CRITICAL HOLIDAY SHOPPING PERIOD DRAWS TO A CLOSE ACCORDING TO THE JOHNSON REDBOOK SERVICE AN AFFILIATE OF LYNCH JONES & RYAN CHAIN AND DEPARTMENTSTORE SALES FOR THE THREE WEEKS OF DECEMBER FELL 17 FROM NOVEMBER WHILE THE REPORT SAID SALES COULD STILL PICK UP IN THE FINAL DAYS THE WEAK READING ALLOWED THE MARKET TO RALLY IT GAVE A LITTLE SUPPORT TO THE MARKET SAID MR BRIGGS OF DEUTSCHE BANK AT ABOUT THE SAME TIME THE MARKET RECEIVED SUPPORT FROM BUYING RELATED TO MUNICIPAL DEFEASANCE IN DEFEASANCE STATE AND LOCAL GOVERNMENTS TAKE ADVANTAGE OF LOWER INTEREST RATES BY ISSUING NEW SECURITIES TO REFUND OLDER HIGHER YIELD DEBT UNTIL THE DEBT OUTSTANDING CAN BE CALLED THE PROCEEDS ARE INVESTED IN TREASURYS CAPPED BY A 668 MILLION NEW YORK STATE URBAN DEVELOPMENT CORP REFUNDING ISSUE CASH HEADED INTO INTERMEDIATE TREASURYS GIVING PRICES A FINAL BOOST DESPITE THE MARKET'S IMPRESSIVE RECOVERY YESTERDAY TRADERS WERE RELUCTANT TO READ TOO MUCH INTO THE PRICE ACTION CITING THE ILLIQUID PREHOLIDAY CONDITIONS THEY DESCRIBED THE MARKET'S MOVEMENTS AS RANGETRADING THE REAL STORY IS THAT IT'S A QUIET HOLIDAYSPIRITED MARKET SAID MR JOHNSON OF FIRST CHICAGO AS IS USUALLY THE CASE THIS TIME OF YEAR INVESTORS ARE WIDELY DESCRIBED AS WAITING FOR YEAR END BUT WHAT WILL HAPPEN WHEN ACCOUNTS COME BACK TO WORK ON JAN 3 SOME IN THE MARKET SAY NOT MUCH THE WORLD ISN'T GOING TO BE ANY DIFFERENT ON JAN 3 SAID FRANK RICCARDI A SENIOR VICE PRESIDENT AT SOCIETY ASSET MANAGEMENT INC MOST INVESTORS ARE NO LONGER INTERESTED IN WHAT HAPPENED TO THE ECONOMY DURING THE FOURTHQUARTER MOST ASSUME GROWTH WAS SOLID REGISTERING AT LEAST A 4 GAIN IN GROSS DOMESTIC PRODUCT THE REAL QUESTION IS HOW THE ECONOMY WILL PERFORM NEXT YEAR BUT NO MAJOR FIRSTQUARTER DATA WILL BE AVAILABLE UNTIL LATE JANUARY AS A RESULT MOST INVESTORS WILL JUST STAY PUT MARKET PARTICIPANTS SAID I WOULDN'T EXPECT ANY MAJOR RESTRUCTURING OF PORTFOLIOS IN THE FIRST FEW DAYS SAID MR BRIGGS MOST ACCOUNTS BEFORE THEY MAKE ANY STRATEGIC CHANGES ARE GOING TO NEED A LOT MORE INFORMATION BEFORE THE MARKET CAN WRITE THE REST OF THIS YEAR OFF TRADERS HAVE TO CONTEND WITH TODAY'S 11 BILLION FIVEYEAR NOTE AUCTION IN WHENISSUED TRADING LATE YESTERDAY THE FIVEYEAR NOTE YIELDED 521 UNCHANGED FROM MONDAY TRADING IS SCHEDULED TO END EARLY THURSDAY AT 2 PM EST AHEAD OF THE CHRISTMAS HOLIDAY THE MARKET WILL BE CLOSED FRIDAY BOND TRADING ALSO WILL CONCLUDE EARLY ON DEC 31 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 1995 AFTER YESTERDAY THE CORPORATE BOND MARKET WILL BE CLOSED IN SYNDICATE OFFICIALS' MINDS EVEN THOUGH IT IS TECHNICALLY OPEN FOR BUSINESS TODAY AND TOMORROW THE MARKET SAW A 280 MILLION TWOPART OFFERING FROM HOME HOLDINGS INC AND A 144A PRIVATE PLACEMENT FROM PACIFIC MUTUAL LIFE INSURANCE CO FOR 150 MILLION IN THE JUNKBOND MARKET A 115 MILLION UNIT OFFERING WAS PRICED BY SANTA FE HOTEL INC INVESTORS SEEMED TO SENSE THAT THEY COULD DEMAND EXTRA IN THE YEAREND MARKET AS MOST OF THE DEALS REQUIRED SWEETENERS TO SELL THE HOME HOLDINGS DEBT OFFERING INCLUDES A CLAUSE THAT INCREASES THE COUPON BY 075 PERCENTAGE POINT IF THE DEBT IS DOWNGRADED BELOW INVESTMENT GRADE BY EITHER MOODY'S INVESTORS SERVICE OR STANDARD & POOR'S SANTA FE'S OFFERING INCLUDED WARRANTS TO BUY DEBT AT NO ADDITIONAL COST TO THE INVESTORS UNDERWRITERS STRUGGLED TO COMPLETE HOME HOLDINGS' DEBT OFFERING AS HAPPENED WITH THE COMPANY'S INITIAL PUBLIC STOCK OFFERING LAST WEEK HOME HOLDINGS COMPLETED ITS 1275 MILLION IPO ON THURSDAY AFTER REDUCING THE NUMBER OF SHARES OFFERED TO 75 MILLION AND DECREASING THE PRICE PER SHARE FROM NEARLY 27 TO 17 THE OFFERING SUFFERED BECAUSE STOCK PRICES OF INSURANCE COMPANIES WERE SOFT IN NOVEMBER AND DECEMBER A COMPANY SPOKESWOMAN SAID THE COMPANY SOLD 100 MILLION OF FIVEYEAR SENIOR NOTES AT 99153 TO YIELD 7205 OR TWO PERCENTAGE POINTS ABOVE TREASURYS THE LOW END OF THE ORIGINAL PRICE TALK WAS 15 PERCENTAGE POINTS ONE INVESTOR SAID THE SECOND PART 180 MILLION OF 10YEAR SENIOR NOTES WAS PRICED AT 98784 TO YIELD 8054 OR 225 PERCENTAGE POINTS ABOVE TREASURYS THE LOW END OF PRICE TALK WAS 1875 PERCENTAGE POINTS OVER TREASURYS THE INVESTOR SAID BOTH PARTS ARE NONCALLABLE AND RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P ACCORDING TO AN OFFICIAL AT LEHMAN BROTHERS ON DEC 15 S&P REVISED ITS OUTLOOK ON HOME HOLDINGS TO NEGATIVE FROM STABLE A NUMBER OF INVESTMENTGRADE INVESTORS WANTED COMPENSATION FOR THE RISK THAT THE COMPANY COULD BE DOWNGRADED TO JUNK STATUS ONE INVESTOR SAID MANY INVESTMENTGRADE BUYERS ARE UNABLE UNDER THE GUIDELINES OF THEIR PORTFOLIOS TO HOLD JUNK BONDS AS A RESULT IF THE RATING FROM EITHER MAJOR AGENCY DROPS BELOW INVESTMENT GRADE THE COUPON ON BOTH PARTS OF THE DEBT OFFERING WILL RISE BY 075 PERCENTAGE POINT THE LEHMAN OFFICIAL SAID IF THE RATINGS RETURN TO INVESTMENTGRADE THE COUPON WILL READJUST TO THE LOWER LEVEL HE SAID NEW YORK ISSUERS STOLE THE SHOW IN MUNICIPALBOND DEALINGS YESTERDAY A SMITH BARNEY SHEARSON GROUP WON NEW YORK STATE'S 80 MILLION GENERAL OBLIGATION IMPROVEMENT BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 48579 THE SECURITIES WERE GIVEN YIELDS RANGING FROM 250 IN 1994 TO 525 IN 2012 AND 2013 THERE WAS AN UNSOLD BALANCE OF ABOUT 12 MILLION YESTERDAY AFTERNOON SMITH BARNEY SHEARSON SAID IN NEGOTIATEDFINANCING ACTIVITY A GOLDMAN SACHS GROUP PRICED THE NEW YORK STATE URBAN DEVELOPMENT CORP'S 6684 MILLION 1993A BONDS INCLUDED IN THE ISSUE ARE 2768 MILLION 1993A CORRECTIONAL FACILITIES REFUNDING BONDS THAT ARE PRICED TO YIELD FROM 450 IN 1998 TO 580 IN 2016 THE 3916 MILLION 1993A CORRECTION CAPITAL FACILITIES REFUNDING BONDS ARE PRICED TO YIELD FROM 520 IN 2002 TO 580 IN 2020 SUPPLYHUNGRY INVESTORS HAVE RESPONDED FAVORABLY TO THE ISSUE SOME MUNI SPECIALISTS SAY THE OFFERING IS SCHEDULED TO SETTLE THE FIRST WEEK OF JANUARY AND THE BONDS WILL BE FREED TO TRADE JUST WHEN DEMAND IS EXPECTED TO INCREASE SIGNIFICANTLY BECAUSE OF NUMEROUS BOND REDEMPTIONS SAYS JOSEPH BRANCA CHIEF FINANCIAL OFFICER OF THE URBAN DEVELOPMENT CORP HE NOTES THAT THE BONDS PRICED THIS SESSION WILL THUS BE SOME OF THE FIRST NEW NEW YORK SECURITIES TO HIT THE MARKET IN 1994 SEPARATELY ACTIVELY TRADED MUNIS WERE GENERALLY UNCHANGED TO 1/4 POINT LOWER IN LATE TRADING THE NEW YORK STATE POWER AUTHORITY'S 525 BONDS DUE 2018 FINISHED UNCHANGED AT 99 YIELDING 531 MORTGAGE SECURITIES ENDED WITH SMALL PRICE DECLINES YESTERDAY BUT LIKE TREASURYS WERE UP FROM SESSION LOWS AFTER THE 17 BILLION TWOYEAR NOTE AUCTION THERE WAS LITTLE ELSE TO FOCUS ON IN THE SESSION MAXIMUM MORTGAGE SECURITIES PRICE DECLINES WERE 1/8 POINT WHILE INTERMEDIATE TREASURYS WERE UNCHANGED IN SECONDARY DEALINGS OF 65S FOR JANUARY DELIVERY GINNIE MAES DECLINED 3/32 TO 99 3/32 FREDDIE MAC GOLDS LOST 1/8 POINT TO 99 6/32 AND FANNIE MAES DECREASED 1/8 POINT TO 99 1/32 WITH BOTH THE NEWISSUE AND SECONDARY ARENAS AT A STANDSTILL DEALERS HAD PLENTY OF TIME TO DEBATE THE PREPAYMENT SCENARIO ALTHOUGH THE EVIDENCE AND RATE TRENDS POINT TO A SLOWDOWN IN EARLY PREPAYMENTS THERE'S A CAUTIOUS TONE BECAUSE MARKET PLAYERS HAVE BEEN FOOLED SEVERAL TIMES OVER THE PAST FEW YEARS LATE IN THE SESSION MARKET PLAYERS RECEIVED THE LATEST INDICATOR UPON WHICH TO BASE PREDICTIONS THE DOW JONES/TELERATE TITLE SEARCH INDEX DROPPED TO 1604 IN THE WEEK ENDED DEC 17 FROM 1832 THE PRIOR WEEK THAT'S NEARLY HALF OF THE ALLTIME HIGH OF 3115 REACHED AS RECENTLY AS MIDSEPTEMBER TITLE SEARCHES ARE A LEADING INDICATOR OF MORTGAGE PREPAYMENTS BECAUSE A TITLE SEARCH IS AN EARLY STEP IN THE PROCESS OF SELLING A HOME OR REFINANCING A MORTGAGE LOAN 9312220100 931222 POLITICS & POLICY D'AMATO SEEKS PROBE OF S&L LINKS TO CLINTON BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CONTROVERSY OVER PRESIDENT CLINTON'S LINK TO A FAILED ARKANSAS SAVINGS AND LOAN HEIGHTENED AS SENATE REPUBLICANS CALLED FOR AN INVESTIGATION AND THE WHITE HOUSE SAID IT WON'T RELEASE CERTAIN PERSONAL BUSINESS RECORDS RELATED TO THE MATTER SEN ALFONSE D'AMATO R NY THE RANKING REPUBLICAN ON THE SENATE BANKING COMMITTEE ASKED THE PANEL'S CHAIRMAN TO CONVENE A FULL AND THOROUGH HEARING ON THE FAILURE OF MADISON GUARANTY SAVINGS & LOAN IN 1989 HE SAID HEARINGS ARE NECESSARY TO STUDY CHARGES OF THE POSSIBLE DIVERSION OF FEDERALLY INSURED THRIFT FUNDS TO PAY OFF CAMPAIGN AND PERSONAL DEBTS THE DISAPPEARANCE OF OFFICIAL AND PERSONAL FILES CRITICAL TO COMPLETE EXAMINATION OF THESE ALLEGATIONS AND THE POSSIBLE PARTICIPATION OF FRIENDS OF THE PRESIDENT AS WELL AS MEMBERS OF THE FIRST FAMILY IN THE ALLEGED MISCONDUCT MR D'AMATO'S REQUEST MADE IN A LETTER TO SENATE BANKING CHAIRMAN DONALD RIEGLE D MICH SUGGESTS THAT ALLEGATIONS ABOUT MR CLINTON'S DEALINGS WITH THE DEFUNCT LITTLE ROCK THRIFT AND ITS FORMER OWNER JAMES MCDOUGAL COULD BECOME INCREASINGLY SENSITIVE FOR THE WHITE HOUSE MR MCDOUGAL WAS A PARTNER WITH MR CLINTON AND HILLARY RODHAM CLINTON IN WHITEWATER DEVELOPMENT CORP AN ARKANSAS REAL ESTATE PARTNERSHIP THE JUSTICE DEPARTMENT IS PROBING A NUMBER OF CHARGES INVOLVING MADISON GUARANTY INCLUDING THE POSSIBLE DIVERSION OF THRIFT FUNDS TO SUCH REAL ESTATE VENTURES AND TO POLITICIANS LIKE MR CLINTON THE ALLEGED DIVERSIONS INCLUDE POSSIBLE PAYMENT OF A 1984 REELECTION CAMPAIGN DEBT FOR WHICH THENGOV CLINTON WAS PERSONALLY LIABLE SPOKESMEN FOR MR CLINTON HAVE DENIED ANY WRONGDOING OR IMPROPRIETY PRESIDENT AND MRS CLINTON INDICATED YESTERDAY THEY DON'T INTEND TO RELEASE RECORDS RELATING TO THEIR INVESTMENT IN WHITEWATER THAT WERE REMOVED FROM THE OFFICE OF WHITE HOUSE DEPUTY COUNSEL VINCENT FOSTER JR AFTER HIS SUICIDE LAST SUMMER THE DOCUMENTS WERE TRANSFERRED TO THE CLINTONS' PERSONAL ATTORNEY DAVID KENDALL THEY'RE ALL RELATED TO THE INDEPENDENT ACCOUNTANT'S REPORT WHICH WE HAD DONE DURING THE CAMPAIGN WHICH PROVED THAT WE LOST MONEY IN THIS DEAL AND AS FAR AS WE'RE CONCERNED THAT IS THE STORY MRS CLINTON TOLD THE ASSOCIATED PRESS WE JUST THINK THAT WHAT WE'VE SAID IS ADEQUATE ESPECIALLY WITH THAT INDEPENDENT ACCOUNTANT'S REPORT HOUSE REPUBLICANS ALREADY HAVE LAUNCHED THEIR OWN INVESTIGATION LAST WEEK REP JAMES LEACH R IOWA CRITICIZED FEDERAL BANK REGULATORS FOR DELAYS IN RESPONDING TO HIS REQUEST FOR DOCUMENTS ABOUT MADISON GUARANTY IN AN INTERVIEW SEN D'AMATO SAID HE THINKS THE BANKING PANEL SHOULD INVESTIGATE THE ALLEGATIONS BEFORE THE COMMITTEE TAKES UP OTHER BUSINESS NEXT YEAR INCLUDING THE ADMINISTRATION'S PROPOSAL TO REORGANIZE THE BANK REGULATORY AGENCIES HE SAID THAT SENATE MINORITY LEADER ROBERT DOLE OF KANSAS AND ALL THE SENATE REPUBLICANS AND THE BANKING COMMITTEE STAND BEHIND HIS REQUEST FOR HEARINGS 9312220099 931222 TECHNOLOGY DEFENSE AWARD TO AETNA LIFE RULED IMPROPER BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL THE GENERAL ACCOUNTING OFFICE RULED THAT THE DEPARTMENT OF DEFENSE IMPROPERLY AWARDED AETNA LIFE & CASUALTY CO A 35 BILLION MEDICAL CONTRACT THAT HAS BEEN SEEN AS A MODEL FOR FUTURE HEALTHCARE REFORMS THOUGH NOT BINDING ON THE DEFENSE DEPARTMENT THE SURPRISE GAO RULING IS A VICTORY FOR FOUNDATION HEALTH CORP AND QUALMED INC WHICH WERE AMONG SEVERAL RIVAL BIDDERS FOR THE HUGE JOB AND HAD PROTESTED ITS AWARD TO AETNA IN JULY THE TWO HEALTHCARE SERVICE COMPANIES PLAN TO PRESS THE PENTAGON TO REOPEN THE BIDDING PROCESS THE CONTRACT COVERS HEALTHCARE SERVICES FOR 800000 MILITARY RETIREES AND THEIR DEPENDENTS IN CALIFORNIA AND HAWAII FOUNDATION BASED IN RANCHO CORDOVA CALIF HAS HAD THE CONTRACT SINCE 1988 THE COMPANY DERIVED AN ESTIMATED 60 OF ITS PROFIT FROM THE CONTRACT AND HAD JUST ANNOUNCED PLANS TO LAY OFF 600 TO 700 WORKERS IN ANTICIPATION OF AETNA'S TAKING OVER THE WORK ON FEB 1 WE HAVE MAINTAINED THAT AN IMPROPER DECISION WAS MADE AND THAT WE SHOULD HAVE BEEN AWARDED THIS CONTRACT SAID DANIEL CROWLEY FOUNDATION'S CHIEF EXECUTIVE OFFICER IN A STATEMENT BASED ON THIS GAO DECISION WE WILL ASK THE DEFENSE DEPARTMENT TO STOP THE TRANSITION OF THE CONTRACT TO THE OTHER BIDDER DEFENSE DEPARTMENT OFFICIALS ASSOCIATED WITH THE CONTRACT COULDN'T BE REACHED FOR COMMENT IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE NEWS CAUSED FOUNDATION'S STOCK TO GAIN 1875 OR 6 TO 3150 A SHARE AFTER A HALT IN TRADING TO DISSEMINATE THE NEWS QUALMED'S SHARES ROSE 1875 OR 13 TO 16125 EACH SHARES OF AETNA FELL 1 OR ALMOST 2 TO 5950 ANALYSTS WERE TAKEN ABACK BY THE GAO RULING THOUGH THEY NOTED THAT IT IS ADVISORY ONLY IT'S A BIZARRE CHANGE OF FATE SAID KENNETH ABRAMOWITZ AN ANALYST WITH SANFORD C BERNSTEIN I'M REELING ADDED ELLIE KERNS WHO FOLLOWS FOUNDATION FOR ALEX BROWN & SONS GAO OFFICIALS WEREN'T AVAILABLE TO EXPLAIN THE RULING A SINGLEPAGE CONCLUSION FROM A GAO REPORT RELEASED BY FOUNDATION SUGGESTS THAT THE DEFENSE DEPARTMENT EITHER REVISE ITS SOLICITATION FOR CONTRACTORS OR SIMPLY REQUEST REVISED PROPOSALS FROM THE BIDDERS IF AETNA'S PROPOSAL DOESN'T APPEAR TO REPRESENT THE BEST VALUE AFTER THE EVALUATION ITS CONTRACT SHOULD EITHER BE TERMINATED IMMEDIATELY OR AT THE NEXT POSSIBLE OPTION PERIOD THE GAO REPORT STATES KEVIN MURPHY VICE CHAIRMAN OF QUALMED BASED IN PUEBLO COLO SAID HE BELIEVES THE GAO CONCLUDED THAT THE DEFENSE DEPARTMENT DIDN'T PROPERLY CONSIDER THE HEALTHCARE EFFICIENCIES OF THE BIDDERS IT'S A GREAT VICTORY HE SAID IT'S MY UNDERSTANDING THAT A GAO REVERSAL LIKE THIS HAPPENS IN LIKE 5 OF CASES A LOSS OF THE CONTRACT WOULD BE A BLOW TO AETNA LIFE & CASUALTY WHICH IS BASED IN HARTFORD CONN AND HAD BEEN LOOKING TO THE CONTRACT AS A MEANS TO EXPAND ITS PRESENCE IN CALIFORNIA AND HAWAII BUT STOCK ANALYSTS SAY THE CONTRACT BY ITSELF ISN'T MATERIAL TO AN INSURANCE COMPANY THE SIZE OF AETNA ONE REASON IS THAT THE PROFIT MARGINS ARE BELIEVED TO BE THIN ANOTHER IS THAT THE BUSINESS WOULD ACCOUNT FOR ONLY A SMALL PORTION OF AETNA'S SALES LAST YEAR AETNA REPORTED REVENUE OF 175 BILLION BY COMPARISON THE CONTRACT IS VALUED AT A TOTAL OF 35 BILLION OVER FIVE YEARS AETNA AND ITS SUBCONTRACTORS HAVE SPENT THE PAST SEVERAL MONTHS PREPARING FOR THE CONTRACT ONE OF ITS SUBCONTRACTORS BLUE CROSS AND BLUE SHIELD OF SOUTH CAROLINA BASED IN COLUMBIA SC HAS ALREADY BROKEN GROUND ON A BUILDING TO HANDLE SOME OF THE CLAIMS AETNA IS CONFIDENT ITS BID WILL PREVAIL WE HOPE TO MOVE FORWARD WITH THE IMPLEMENTATION OF THE PROGRAM SAID AN AETNA SPOKESMAN WE FEEL THE CONTRACT WAS AWARDED AFTER A FAIR AND THOROUGH REVIEW WE HAVE NO SENSE THAT THERE IS ANYTHING WRONG WITH OUR PROPOSAL OR WITH AETNA'S PROPOSAL SAID A BLUE CROSS SPOKESMAN THERE'S NO REASON NOT TO GO FORWARD NOBODY HAS TOLD US TO STOP GETTING READY GREG STEINMETZ CONTRIBUTED TO THIS ARTICLE 9312220098 931208 LETTERS TO THE EDITOR SEPARATION OF CHURCH AND HEALTH CARE NO CHURCH SHOULD BE ABLE TO LIMIT ACCESS TO HEALTH CARE THAT A WOMAN AND HER DOCTOR FEEL IS NECESSARY AND APPROPRIATE ALTHOUGH HE CLOAKED HIS AGENDA IN EMPLOYERS' RIGHTS RHETORIC THAT IS EXACTLY WHAT CATHOLIC PUBLISHER GREG ERLANDSON PROPOSES IN HIS NOV 26 EDITORIALPAGE PIECE DEMANDING THAT ABORTION BE CUT OUT OF THE CLINTON HEALTH PLAN ABORTION AND THE HEALTH PLANFATAL COERCION THE CATHOLIC HIERARCHY LONG OPPOSED THE LEGALIZATION OF CONTRACEPTION SHOULD BIRTH CONTROL BE EXCLUDED FROM HEALTH COVERAGE TOO WHAT ABOUT BLOOD TRANSFUSIONS THERE ARE WELLRESPECTED RELIGIOUS GROUPS THAT HAVE DOCTRINAL OPPOSITION TO TRANSFUSIONS STILL OTHERS FEEL THAT ALL HEALING SHOULD BE LEFT NOT TO MEDICINE BUT TO FAITH THE CLINTON PLAN WILL NOT FORCE ANY HOSPITAL OR DOCTOR TO PROVIDE ABORTIONS BUT NO WORKPLACEBASED HEALTH FINANCING SYSTEM CAN ALLOW EMPLOYERS OR EMPLOYEES TO OPT OUT OF PAYING FOR COMPONENTS THEY DON'T LIKE A PACIFIST IS ENTITLED TO CONSCIENTIOUSOBJECTOR STATUS DURING WARTIME BUT NOT TO EXEMPTION FROM THE SHARE OF INCOME TAXES THAT GO TO THE MILITARY LIKEWISE THE MANY EMPLOYERS WHO RAISED IDEOLOGICAL OBJECTIONS TO SOCIAL SECURITY AND UNEMPLOYMENT BENEFITS HAVE NO RIGHT TO OPT OUT OF THOSE FUNDING MECHANISMS ABORTION IS CLEARLY AN IMPORTANT MEDICAL SERVICE AND ONE OF THE MOST COMMON OF ALL SURGERIES EACH YEAR 16 MILLION AMERICAN WOMEN TURN TO DOCTORS TO PROVIDE ABORTION SERVICES AND CATHOLIC WOMEN HAVE ABORTIONS AT ABOUT THE SAME RATE AS NONCATHOLIC WOMEN SO CATHOLIC INSTITUTIONS ARE ALREADY FUNDING THEIR EMPLOYEES' ABORTIONS VIA PAYCHECKS RATHER THAN INSURANCE PREMIUMS WOULD MR ERLANDSON ARGUE THAT A CATHOLIC EMPLOYER IN ORDER TO AVOID HAVING HIS PAYROLL FUND AN ABORTION HAS THE RIGHT TO FIRE A WOMAN WHO HAS ONE OR WOULD HE BE SATISFIED AT HAVING PUNISHED THE WOMAN SUFFICIENTLY BY MAKING HER PAY DIRECTLY OUT OF HER OWN POCKET HEALTH REFORM SHOULD BE A VEHICLE FOR PROVIDING UNIVERSAL COVERAGE NOT FOR IMPOSING ANYONE ELSE'S PERSONAL VIEWS ON PREGNANT WOMEN SEE RELATED LETTERS LETTERS TO THE EDITOR A SLAVERY OF THE MIND AND HEART WSJ DEC 22 1993 9312080083 YY93 MM12 9312220097 931222 ECONOMY CLINTON MULLS MASSTRANSIT SUBSIDY CUTS BY DAVID WESSEL AND DANIEL PEARL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS CONSIDERING A FISCAL 1995 BUDGET THAT WOULD ELIMINATE 800 MILLION IN ANNUAL SUBSIDIES FOR THE OPERATION OF URBAN MASSTRANSIT SYSTEMS FACED WITH A STRICT SPENDING CEILING FOR THE FISCAL YEAR THAT BEGINS IN OCTOBER A PENTAGON THAT INSISTS IT NEEDS MORE MONEY THAN PROVIDED IN MR CLINTON'S FIVEYEAR DEFENSE PLAN AND A LONG LIST OF PROGRAMS FOR WHICH HE WANTS TO INCREASE SPENDING MR CLINTON HAS BEEN SEARCHING FOR PROGRAMS TO CUT PARTICULARLY THOSE THAT WOULD YIELD IMMEDIATE SAVINGS LIKE THE OPERATING SUBSIDIES AFTER MEETING WITH THE HEAD OF EVERY MAJOR AGENCY MR CLINTON HAD THE LAST SESSION WITH HIS BUDGET ECONOMIC AND POLITICAL ADVISERS TO RESOLVE DISPUTES BETWEEN THE WHITE HOUSE BUDGET OFFICE AND INVIDIDUAL AGENCIES THE PRESIDENT PLANS TO SEND HIS BUDGET PROPOSAL TO CONGRESS IN FEBRUARY ALTHOUGH DECISIONS AREN'T FINAL THE IDENTITIES OF THE WINNERS AND LOSERS ARE BEGINNING TO SEEP OUT THE TRANSIT SUBSIDIES LOOK LIKE LOSERS MR CLINTON IS CONSIDERING PHASING THEM OUT OVER THREE YEARS ALTHOUGH HE IS LIKELY TO SUPPORT CONTINUATION OF 16 BILLION A YEAR IN GRANTS TO HELP TRANSIT SYSTEMS BUY NEW EQUIPMENT OFFICIALS SAID THE PROPOSAL COULD RAISE AN OUTCRY FROM SMALL CITIES WHERE BUS SYSTEMS TYPICALLY RELY ON FEDERAL TRANSIT GRANTS FOR 20 OR MORE OF THEIR BUDGETS ADMINISTRATION OFFICIALS ACKNOWLEDGE THE CUTS WOULD PROBABLY FORCE SOME SYSTEMS TO REDUCE SERVICE NEW YORK CITY WHICH AT 132 MILLION A YEAR IS THE LARGEST RECIPIENT OF OPERATING FUNDS WOULD LOSE 2 OF ITS OPERATING BUDGET AND MIGHT HAVE TO RAISE SUBWAY FARES BY A DIME OR MORE LOS ANGELES AND CHICAGO ARE THE NEXTLARGEST RECIPIENTS OF OPERATING GRANTS HIGHER FARES AND REDUCED SERVICE WILL DRAMATICALLY UNDERCUT TRANSIT'S ABILITY TO INCREASE TRANSIT RIDERSHIP WHICH HELPS TO FIGHT URBAN TRAFFIC CONGESTION REDUCE VEHICLE AIR POLLUTION AND CUT FUEL CONSUMPTION JACK GILSTRAP EXECUTIVE VICE PRESIDENT OF THE AMERICAN PUBLIC TRANSIT ASSOCIATION TOLD MR CLINTON IN A LETTER PRESIDENTS REAGAN AND BUSH REPEATEDLY RECOMMENDED THAT CONGRESS ELIMINATE THE OPERATING GRANTS CONGRESS REFUSED EACH TIME BY LAW MR CLINTON MUST SUBMIT A BUDGET THAT PROPOSES 5405 BILLION IN OUTLAYS FOR WHAT IS KNOWN AS DISCRETIONARY SPENDING THE MONEY THAT CONGRESS APPROPRIATES EACH YEAR TO PAY FOR SUCH THINGS AS SALARIES PAPER CLIPS AND GRANTS TO LOCAL STATE AND FOREIGN GOVERNMENTS THAT'S APPROXIMATELY WHAT CONGRESS APPROPRIATED FOR THIS YEAR WITHOUT ALLOWING ANY INCREASE TO COVER INFLATION SLIGHTLY LESS THAN HALF THE TOTAL WILL GO TO THE PENTAGON ADMINISTRATION OFFICIALS SAY THE PRESIDENT MOST LIKELY WILL AGREE TO ALLOCATE TO DEFENSE A FEW BILLION DOLLARS MORE FOR FISCAL 1995 THAN HE DID WHEN HE OUTLINED A FIVEYEAR DEFENSE BUDGET EARLIER THIS YEAR OUTSIDE OF DEFENSE ADMINISTRATION OFFICIALS EXPECT THE BUDGET TO CALL FOR ANOTHER SIGNIFICANT INCREASE IN SPENDING ON HEAD START THE POPULAR PRESCHOOL PROGRAM ON WHICH THE GOVERNMENT WILL SPEND 33 BILLION THIS YEAR BUT MR CLINTON IS EXPECTED TO PROPOSE CUTTING THE LOWINCOME HEATING ASSISTANCE PROGRAM BY ONETHIRD TO ONEHALF THE PROGRAM WILL COST ABOUT 14 BILLION THIS YEAR THE BUDGET ALSO IS EXPECTED TO INCLUDE A MULTIAGENCY INITIATIVE TO IMPROVE THE EVERGLADES ECOSYSTEM IN SOUTH FLORIDA THE PLAN'S COST WOULD BE 20 MILLION NEXT YEAR BUT WOULD RISE TO BETWEEN 300 MILLION AND 500 MILLION OVER THE NEXT SEVERAL YEARS TALKS BETWEEN THE INTERIOR DEPARTMENT AND FLORIDA SUGAR GROWERS ON THIS MATTER REACHED AN IMPASSE LAST WEEK THE ENVIRONMENTAL PROTECTION AGENCY IS EXPECTED TO GET AN INCREASE FROM THIS YEAR'S SPENDING THAT COMPENSATES FOR MUCH OF THE 916 MILLION THAT MR CLINTON INCLUDED IN A STIMULUS SPENDING PACKAGE THAT CONGRESS REJECTED THIS SPRING ADMINISTRATION OFFICIALS SAID IN OTHER BUDGETARY MATTERS THE TREASURY'S TOP TAX OFFICIAL SAID THE PRESIDENT ISN'T LIKELY TO PROPOSE ANY SIGNIFICANT TAX CHANGES IN HIS BUDGET BEYOND THOSE ALREADY ANNOUNCED AS PART OF HIS HEALTHCARE INITIATIVE WE DID A LOT IN '93 AND WE OUGHT TO LET PEOPLE DIGEST THAT LESLIE SAMUELS SAID WHITE HOUSE OFFICIALS SAID THAT IT ISN'T YET CLEAR IF MR CLINTON WILL INCLUDE PROPOSALS FOR WELFARE REFORM OR RESTRUCTURING THE SUPERFUND HAZARDOUSWASTE CLEANUP PROGRAM IN THE BUDGET IF HE DOES HE MAY SUGGEST REVENUE INCREASES TO PAY FOR THEM THE INTERNAL REVENUE SERVICE IS SEEKING AN EXEMPTION FROM THE STRICT SPENDING CAPS ARGUING IN AN INTERNAL MEMORANDUM THAT ITS PROGRAMS ARE UNIQUE IN THAT MOST WILL PRODUCE AT LEAST FIVE DOLLARS FOR EVERY ONE DOLLAR EXPENDED CONGRESS PROVIDED SUCH AN EXEMPTION FROM THE CAPS IN THE 1990 DEFICITREDUCTION LAW FOR INCREASES IN IRS ENFORCEMENT SPENDING BUT DIDN'T DO SO IN THIS YEAR'S VERSION NEW ADMINISTRATION ESTIMATES INDICATE THAT THE WORLD TRADE AGREEMENT STRUCK IN GENEVA THIS MONTH MAY REDUCE INCOME FROM US TARIFFS BY MORE THAN 10 BILLION OVER THE NEXT FIVE YEARS MORE THAN THE WHITE HOUSE BUDGET OFFICE ANTICIPATED BY LAW MR CLINTON AND CONGRESS MUST OFFSET THIS LOST REVENUE WITH SAVINGS OR REVENUE INCREASES SOMEWHERE ELSE BUT ADMINISTRATION OFFICIALS SAY THESE PROPOSALS PROBABLY WON'T BE INCLUDED IN MR CLINTON'S BUDGET INSTEAD THEY WILL BE PRESENTED SEPARATELY AFTER THE WHITE HOUSE CONFERS WITH CONGRESSIONAL REPUBLICANS WHOSE VOTES MR CLINTON MAY NEED TO APPROVE THE TRADE AGREEMENT DAVID ROGERS CONTRIBUTED TO THIS ARTICLE 9312220096 931222 ECONOMY MUNICIPALBOND GROUPS UNVEIL DISCLOSURE PLANS BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A DOZEN GROUPS REPRESENTING STATE AND LOCAL GOVERNMENTS AND OTHER MUNICIPALBOND MARKET PARTICIPANTS ISSUED A SERIES OF PROPOSALS TO IMPROVE DISCLOSURE IN THE MUNI MARKET THE GROUPS RECOMMENDED TO THE SECURITIES AND EXCHANGE COMMISSION THAT DEALERS BE ALLOWED TO UNDERWRITE MUNICIPALBOND ISSUES ONLY IF THE BOND ISSUERS AGREE TO RELEASE ANNUAL FINANCIAL REPORTS AND PROVIDE OTHER SIGNIFICANT INFORMATION INCLUDING FINANCIAL AND OPERATING DATA ON A TIMELY BASIS THE MUNICIPAL SECURITIES RULEMAKING BOARD A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT ALREADY HAS VOLUNTEERED TO SERVE AS A REPOSITORY FOR SUCH DISCLOSURES THE GROUPS ALSO SAID THE SEC AND OTHER REGULATORS SHOULD ENSURE THAT SUITABILITY RULES WHICH REQUIRE DEALERS TO MAKE SURE INVESTMENTS ARE APPROPRIATE FOR THE INDIVIDUALS MAKING THEM ARE VIGOROUSLY ENFORCED IN THE MUNI MARKET AND THEY SAID REGULATORS SHOULD SEE TO IT THAT DEALERS DISCLOSE TO INVESTORS WHETHER BOND ISSUERS HAVE AGREED TO MAKE SECONDARYMARKET DISCLOSURES AND WHETHER SECURITIES BEING OFFERED TO INVESTORS ARE RATED BY RATING SERVICES IF THE SECURITIES ARE RATED THE GROUPS SAID THE RATINGS SHOULD BE DISCLOSED SIGNIFICANTLY THE GROUPS DIDN'T OBJECT TO THE SEC ISSUING A SOCALLED INTERPRETIVE RELEASE SPELLING OUT THE DUTIES OF MUNI ISSUERS UNDER THE ANTIFRAUD PROVISIONS OF FEDERAL SECURITIES LAWS THE COMMISSION IS EXPECTED TO CONSIDER SUCH A RELEASE EARLY NEXT YEAR THE GROUPS' SUBMISSION CAME IN RESPONSE TO A REQUEST BY SEC CHAIRMAN ARTHUR LEVITT FOR HELP IN ENHANCING DISCLOSURE PARTICULARLY IN THE SECONDARY MUNI MARKET MR LEVITT PRAISED THE GROUPS AND APPLAUDED THEIR PROMPT RESPONSE SEC COMMISSIONER RICHARD ROBERTS WHO HAS BEEN IN THE VANGUARD OF EFFORTS TO ADDRESS THE MUNI MARKET'S DISCLOSURE PROBLEMS SAID THE SUBMISSION REPRESENTS GREAT PROGRESS AND IS A VERY POSITIVE DEVELOPMENT WITH WHICH I AM PERSONALLY THRILLED SEPARATELY ANOTHER COALITION OF EIGHT MAJOR STATE AND LOCAL GROUPS INCLUDING SOME OF THE SAME GROUPS THAT MADE THE DISCLOSURE RECOMMENDATIONS URGED THE SEC TO DEFER ACTION ON A REGULATORY INITIATIVE AIMED AT ENDING PAYTOPLAY POLITICAL GIFTS BY MUNI DEALERS TO STATE AND LOCAL OFFICIALS AS EXPECTED THE COALITION SAID A MYRIAD OF LEGAL MARKET PROCESS AND POLITICAL ISSUES NEED TO BE RESOLVED BEFORE ACTION IS TAKEN THE SEC SOON WILL RECEIVE A PROPOSAL FROM THE MUNICIPAL SECURITIES RULEMAKING BOARD TO RESTRICT SUCH GIFTS THE COMMISSION IS EXPECTED TO CONSIDER IT EXPEDITIOUSLY NEXT YEAR THE 12 GROUPS SAID THAT ANY INTERPRETIVE RELEASE SHOULD BE ISSUED ONLY AFTER MARKET PARTICIPANTS HAVE A CHANCE TO COMMENT ON IT AND THEY SAID SUCH A RELEASE SHOULD PROVIDE GENERAL GUIDANCE AND ILLUSTRATIONS WITHOUT SPECIFYING THE ACTUAL FORM AND CONTENT OF DISCLOSURE DOCUMENTS MUNI ISSUERS GENERALLY ARE EXEMPT FROM FEDERAL SECURITIES LAWS BUT ARE SUBJECT TO THE ANTIFRAUD PROVISIONS GROUPS PARTICIPATING IN THE DISCLOSURE EFFORT INCLUDE THE AMERICAN BANKERS ASSOCIATION AMERICAN PUBLIC POWER ASSOCIATION ASSOCIATION OF LOCAL HOUSING FINANCE AGENCIES COUNCIL OF INFRASTRUCTURE FINANCING AUTHORITIES GOVERNMENT FINANCE OFFICERS ASSOCIATION NATIONAL ASSOCIATION OF BOND LAWYERS NATIONAL ASSOCIATION OF COUNTIES NATIONAL ASSOCIATION OF STATE AUDITORS COMPTROLLERS AND TREASURERS NATIONAL ASSOCIATION OF TREASURERS NATIONAL COUNCIL OF STATE HOUSING AGENCIES NATIONAL FEDERATION OF MUNICIPAL ANALYSTS AND PUBLIC SECURITIES ASSOCIATION 9312220095 931222 LETTERS TO THE EDITOR A SLAVERY OF THE MIND AND HEART ALEXANDER SANGER PRESIDENT OF PLANNED PARENTHOOD IN HIS DEC 8 LETTER TO THE EDITOR SEPARATION OF CHURCH AND HEALTH CARE ARGUES FOR CATHOLIC INSTITUTIONS' OBLIGATION AS EMPLOYERS TO FUND ABORTION PROCEDURES FOR THEIR EMPLOYEES UNDER PRESIDENT CLINTON'S HEALTH CARE PLAN AND THUS REVEALS THE TWISTED AND MUDDLED THINKING THAT DISTINGUISHES ABORTION ADVOCATES AND PROVIDERS MR SANGER'S FIRST ADVENTURE IN THOUGHT LEADS TO HIS COMPARISON OF THE ROMAN CATHOLIC CHURCH WITH ABOUT 60 MILLION MEMBERS IN THE US AND A BILLION IN THE WORLD TO OTHER NAMELESS WELLRESPECTED RELIGIOUS GROUPS THAT HAVE DOCTRINAL OPPOSITION TO A HOST OF HEALTH CARE PROCEDURES SUCH AS BLOOD TRANSFUSIONS LEAVING ASIDE THE RIDICULOUS COMPARISON BETWEEN THE FORMIDABLE 2000YEAROLD INTELLECTUAL HERITAGE OF THE CATHOLIC CHURCH AND THE RELIGIOUS GROUPS MR SANGER RESPECTS DOES HE REALLY BELIEVE THAT OPPOSITION TO BLOOD TRANSFUSIONS OR APPENDECTOMIES BY WELLINTENTIONED MISGUIDED PEOPLE AND FAITHHEALER SWAMIS IS COMPARABLE TO THE MASSIVE DEBATE THAT CONTINUES TO OCCUR THROUGHOUT THE COUNTRY ON THE ISSUE OF KILLING AN UNBORN CHILD I HAVE NOT NOTICED LATELY MASSIVE CROWDS OF PROTESTERS HOLDING SIGNS OF MARY BAKER EDDY WITH A LINE THROUGH HER IMAGE OR STOP TONSILLECTOMIES NOW MR SANGER'S EXAMPLE OF BLOOD TRANSFUSIONS IS APPROPRIATE THOUGH IN THE DISCUSSION OF ABORTION THE PROBLEM IS THAT THE UNBORN CHILD EXPERIENCES ABORTION AS A ONEWAY TRANSFUSION MR SANGER NEXT PROPOSES THAT ABORTION IS AN IMPORTANT MEDICAL PROCEDURE BECAUSE IT IS COMMON IN THIS THE ABORTION INDUSTRY IS SIMILAR TO DRUGTRAFFIC SERVICES IT IS COMMON IT IS A MULTIBILLIONDOLLAR INDUSTRY PEOPLE DIE FROM ITS PRODUCT CUSTOMERS LACK SELFCONTROL AND DO NOT CARE ABOUT THE CONSEQUENCES OF THEIR ACTIONS ON THEMSELVES OR OTHER PEOPLE MR SANGER CONCLUDES BY STATING THAT HEALTH REFORM SHOULD BE A VEHICLE FOR PROVIDING UNIVERSAL COVERAGE NOT FOR IMPOSING ANYONE ELSE'S PERSONAL VIEWS ON PREGNANT WOMEN THIS KIND OF THINKING THE PLEA FOR AUTOMATIC UNIVERSAL MEDICAL COVERAGE FOR ABORTIONS PERPETUATES A SLAVERY OF THE MIND AND HEART TO AN INAUTHENTIC HUMAN EXISTENCE WHERE THE PANDORA'S BOX OF SEXUAL SELFEXPRESSION IS ENCOURAGED WITH THE PERVERSE YET PREDICTABLE EFFECT OF FORMING INDIVIDUALS WHO SEE LIFE AS A PROJECT TO SATISFY A SERIES OF GLANDULAR APPETITES AS OPPOSED TO A THEATER OF CHARACTERBUILDING WHERE CHOICES ARE GUIDED BY REASON AND RELIGIOUS FAITH THAT RESIST AND DEFEAT OUR WORST INSTINCTS FOR SELFDESTRUCTION AND PROMOTE HUMAN DIGNITY THE ESPOUSAL OF ABORTION SERVICES BY MR SANGER AND HIS ORGANIZATION IS AN EGREGIOUS DEPARTURE FROM PLANNED PARENTHOOD'S FOUNDING PRINCIPLES FORMULATED WITH THE HELP OF MARGARET SANGER THE LATE MRS SANGER ICON OF WOMEN'S RIGHTS AND CHAMPION OF WOMEN'S ACCESS TO CONTRACEPTION SERVICES WAS IN NO RESPECT THE ABORTION ADVOCATE THAT HER GRANDSON HAS BECOME 9312220094 931222 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM 107 MILLION OF DEBENTURES DUE DEC 29 1998 PRICED AT PAR TO YIELD 547 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 25 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO HOME HOLDINGS INC 280 MILLION OF DEBT PRICED IN TWO PARTS THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC THE FIRST PART 100 MILLION OF SENIOR NOTES DUE DEC 15 1998 WAS PRICED AS 7S AT 99153 TO YIELD 7205 THE DEBT WAS PRICED AT A SPREAD OF 200 BASIS POINTS ABOVE TREASURYS THE SECOND PART 180 MILLION OF SENIOR NOTES DUE DEC 15 2003 WAS PRICED AS 7875S AT 98784 TO YIELD 8054 THE ISSUE WAS PRICED AT A SPREAD OF 225 BASIS POINTS ABOVE TREASURYS BOTH TRANCHES ARE NONCALLABLE AND RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP IF THE RATINGS FROM EITHER AGENCY FALL BELOW INVESTMENT GRADE COUPONS ON BOTH TRANCHES RISE BY 75 BASIS POINTS PACIFIC MUTUAL LIFE INSURANCE CO 150 MILLION OF SURPLUS NOTES DUE DEC 30 2023 SOLD IN THE 144A PRIVATEPLACEMENT MARKET THE NOTES WERE PRICED AS 79S AT 99726 TO YIELD 7924 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 140 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WAS SOLD THROUGH DEALERS LED BY MERRILL LYNCH & CO SANTA FE HOTEL INC 115 MILLION OF UNITS PRICED AT PAR TO YIELD 1246 THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP ACCORDING TO SYNDICATE OFFICIALS THE UNITS EACH CONSIST OF 100000 OF 11 NOTES AND ONE WARRANT TO ACQUIRE 1000 OF NOTES AT NO ADDITIONAL COST THE NOTES WHICH ARE DUE DEC 15 2000 ARE NONCALLABLE FOR FOUR YEARS THE PAPER IS RATED SINGLEB2 BY MOODY'S AND SINGLEBMINUS BY S&P INTERPORE INTERNATIONAL INITIAL OFFERING OF 22 MILLION COMMON SHARES PRICED AT 7 EACH THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC NATIONAL DENTEX CORP INITIAL OFFERING OF ONE MILLION COMMON SHARES PRICED AT 8 EACH THROUGH UNDERWRITERS LED BY ADVEST INC PMC COMMERCIAL TRUST INITIAL PUBLIC OFFERING OF THREE MILLION SHARES AT 15 EACH THE LEAD UNDERWRITER WAS OPPENHEIMER & CO NEW YORK STATE 80 MILLION OF GENERALOBLIGATION IMPROVEMENT BONDS APPARENTLY WON BY A SMITH BARNEY SHEARSON INC GROUP YIELDS RANGE FROM 25 IN 1994 TO 525 IN 2012 AND 2013 MOODY'S RATED THE BONDS SINGLEA AND S&P ASSIGNED A SINGLEAMINUS RATING NEW YORK STATE URBAN DEVELOPMENT CORP 7235 MILLION OF 1993A BONDS PRICED BY A GOLDMAN SACHS & CO GROUP INCLUDED ARE 2738 MILLION OF 1993A CORRECTIONALFACILITIES REFUNDING BONDS PRICED TO YIELD FROM 45 IN 1998 TO 58 IN 2016 AMBAC INDEMNITY CORP IS INSURING BONDS DUE IN 200709 AND 2017 THE INSURED BONDS CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE BALANCE OF THE BONDS WHICH ARE UNINSURED HAVE A BAA1 RATING FROM MOODY'S A TRIPLEB RATING FROM S&P AND A SINGLEA RATING FROM FITCH INVESTORS SERVICE INC ALSO INCLUDED ARE 4497 MILLION OF 1993A CORRECTIONCAPITALFACILITIES REFUNDING BONDS PRICED TO YIELD FROM 52 IN 2002 TO 58 IN 2020 FOR THIS SEGMENT FINANCIAL SECURITY ASSURANCE INC IS INSURING BONDS DUE IN 2010 2011 AND 2014 THE INSURED BONDS HAVE TRIPLEA RATINGS FROM MOODY'S AND S&P UNINSURED BONDS HAVE A BAA1 RATING FROM MOODY'S A TRIPLEB RATING FROM S&P AND A SINGLEA RATING FROM FITCH UNION FEDERAL SAVINGS BANK 142 MILLION OF AUTOLOAN ASSETBACKED CERTIFICATES PRICED AS 4875S AT 9996875 TO YIELD 4827 ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES UFSB 1993C HAVE AN AVERAGE LIFE OF 193 YEARS AND WERE PRICED TO YIELD 55 BASIS POINTS ABOVE THE TREASURY'S WHENISSUED TWOYEAR NOTE PRUDENTIAL SECURITIES INC WAS SOLE MANAGER THE CERTIFICATES ARE RATED TRIPLEA BY FITCH AND STANDARD & POOR'S CORP ON A 12 LETTER OF CREDIT PROVIDED BY STATE STREET BANK THE DEAL ALSO CONTAINED A 37 MILLION INTERESTONLY PLANNEDAMORTIZED CLASS BAYERISCHE LANDESBANK GIROZENTRALE GERMANY 250 MILLION CANADIAN DOLLARS OF 6 EUROBONDS DUE DEC 29 1999 AT ISSUE PRICE 10045 VIA WOOD GUNDY INC REOFFERED AT 9885 TO YIELD 624 A SPREAD OF 25 BASIS POINTS ABOVE THE COMPARABLE CANADIANGOVERNMENT BOND FEES 1875 CANADA 65 2001 CAYMAN LTD CANADIAN SPECIALPURPOSE VEHICLE 150 MILLION CANADIAN DOLLARS OF 65 EUROBONDS DUE MAY 1 2001 AT ISSUE PRICE 100775 VIA LEAD UNDERWRITER WOOD GUNDY INC COLLATERALIZED ON CANADIANGOVERNMENT BONDS REOFFERED AT 992 TO YIELD 664 A MARGIN OF 32 BASIS POINTS ABOVE INTERPOLATED YIELD CURVE OF FIVE AND 10YEAR CANADIANGOVERNMENT BOND FEES 1875 CONFEDERATION UK HOLDINGS PLC UK 50 MILLION OF 85 EUROBONDS DUE DEC 31 2003 AT ISSUE AND FIXED REOFFER PRICE 9925 VIA SG WARBURG SECURITIES LTD AT REOFFER PRICE BONDS YIELD 861 A MARGIN OF 225 BASIS POINTS OVER COMPARABLE UK GILT FEES TWO INTERNATIONAL FINANCE CORP SUPRANATIONAL 10 BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 20 1999 AT ISSUE PRICE 10585 VIA NIKKO EUROPE PLC INTEREST PAID SEMIANNUALLY AT 60 BASIS POINTS OVER THE SIXMONTH LONDON INTERBANK OFFERED RATE FEES UNDISCLOSED PETROLEO BRASILEIRO SA BRAZIL 21 BILLION YEN OF 5875 EUROBONDS DUE JAN 6 1997 AT ISSUE AND FIXED REOFFER PRICE PAR VIA NOMURA INTERNATIONAL PLC BONDS PRICED TO YIELD MARGIN OF 370 BASIS POINTS OVER SIXMONTH LIBOR FEES 0075 TRINKAUS & BURKHARDT FINANCE NV GERMAN PARENT 200 MILLION MARKS OF 55 EUROBONDS DUE JAN 18 2001 AT ISSUE PRICE 10095 VIA TRINKAUS & BURKHARDT KGAA BONDS PRICED TO YIELD 573 AFTER FEES 225 GUARANTOR TRINKAUS & BURKHARDT KGAA 9312220093 931222 SECOND US AIRLINE WILL GET RIGHT TO FLY JAPANAUSTRALIA ROUTE WASHINGTON THE CLINTON ADMINISTRATION SAID IT REACHED AN AIRSERVICES AGREEMENT WITH AUSTRALIA THAT WILL ALLOW A SECOND US AIRLINE TO FLY BETWEEN JAPAN AND AUSTRALIA WINGS HOLDINGS INC'S NORTHWEST AIRLINES ALREADY OFFERS NEW YORKOSAKASYDNEY SERVICE THREE TIMES A WEEK EARLIER THIS YEAR THE AIRLINE WAS EMBROILED IN A DISPUTE WITH AUSTRALIAN AUTHORITIES WHO SAID IT WAS CARRYING TOO MANY PASSENGERS BETWEEN JAPAN AND AUSTRALIA US AND AUSTRALIAN AUTHORITIES HAD EACH THREATENED TO CURTAIL FLIGHTS BY THE OTHER COUNTRY'S AIRLINES BUT THEY REACHED A TEMPORARY TRUCE IN JUNE UNDER THE NEW AGREEMENT THE US CAN PICK TWO AIRLINES TO SERVE THE USJAPANAUSTRALIA ROUTE AND AUSTRALIA GAINED COMPARABLE RIGHTS FURTHER GROWTH WILL BE ALLOWED UNDER AGREEDUPON CONDITIONS THE TRANSPORTATION DEPARTMENT SAID 9312220092 931222 SHORT INTEREST ON BIG BOARD HITS A RECORD INCREASE FOR LATEST MONTH IS SCANT 07 POSITION OF MERCK & CO PLUNGES BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST ON THE NEW YORK STOCK EXCHANGE ROSE A SCANT 07 TO A RECORD LEVEL OF 124 BILLION SHARES IN MIDDECEMBER BIG BOARD SHORT INTEREST TOTALED 1240720928 SHARES UP FROM A REVISED 1232220459 SHARES A MONTH EARLIER SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE INCREASED BY 33 MILLION SHARES TO 102300899 FROM AN ADJUSTED 98983170 SHARES REPORTED IN MIDNOVEMBER THE LATEST FIGURE REPRESENTS ABOUT 1 OF THE NEARLY 10 BILLION SHARES OUTSTANDING ON THE AMEX MERCK & CO'S SHORT INTEREST POSITION PLUNGED BY 219 MILLION SHARES TO A TOTAL OF 122 MILLION SHARES FROM 341 MILLION SHARES THE MEDICAL COMPANY'S SHORT INTEREST POSITION HAS SOARED IN RECENT MONTHS FOLLOWING NEWS OF ITS PLAN TO ACQUIRE MEDCO CONTAINMENT SERVICES INC IN A 6 BILLION STOCK TRANSACTION THAT DEAL WAS RECENTLY COMPLETED HARRY STRUNK AN INVESTMENT CONSULTANT IN PALM BEACH FLA SAYS INVESTORS COULD HAVE PREVIOUSLY SOUGHT TO MAKE A PROFIT BY SELLING MERCK'S SHARES WHILE BUYING MEDCO'S BUT THE RECENT COMPLETION OF THE MERCKMEDCO TRANSACTION COULD HAVE NOW PROMPTED INVESTORS TO COVER THEIR PREVIOUS SHORT INTEREST POSITIONS BY BUYING MERCK'S SHARES WHILE SELLING MEDCO'S HE ALSO NOTED THAT SOME SHORT SELLERS MAY HAVE REPURCHASED MERCK SHARES PRIOR TO THE EXDIVIDEND DATE IN EARLY DECEMBER IN ORDER TO RECEIVE THE DIVIDEND WHICH YIELDS 33 ON THE STOCK WALT DISNEY CO CONTINUED TO TOP THE LIST OF THE HIGHEST SHORT INTEREST POSITIONS REGISTERING A JUMP OF 31 MILLION SHARES TO 228 MILLION FROM 197 MILLION SHARES WHILE RJR NABISCO HOLDINGS DISPLACED CHRYSLER CORP FROM SECOND PLACE AFTER ITS SHORT INTEREST JUMPED 76 MILLION SHARES TO 222 MILLION SHARES POSSIBLY RELATED TO CONTINUING HIGH LEVELS OF ARBITRAGE CHRYSLER'S SHORT POSITION ROSE SLIGHTLY TO 171 MILLION SHARES FROM 169 MILLION SHARES THE SHORT INTEREST LEVEL FOR MATTEL INC WHICH RECENTLY COMPLETED ITS PROPOSED ACQUISITION OF FISHERPRICE INC DROPPED 68 MILLION SHARES TO 85 MILLION SHARES FROM 153 MILLION SHARES TRADERS WHO SELL SECURITIES SHORT BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS RISING SHORT INTEREST IN THE PAST HAS BEEN CONSIDERED BULLISH BY SOME ANALYSTS BECAUSE SHORT INTEREST TRADERS WOULD BE REQUIRED TO BUY BACK LARGE QUANTITIES OF SHARES THEY HAVE BORROWED HOWEVER SHORT PROGRAM TRADING OF LARGE VOLUMES OF SECURITIES BY INSTITUTIONAL INVESTORS THAT INVOLVES HEDGING AGAINST OTHER INVESTMENT RISKS RATHER THAN PURE BETS AGAINST INDIVIDUAL STOCKS MAY HAVE REDUCED THE EFFECTIVENESS OF THIS MEASURE OTHERS SAY THE LEVEL OF NEGATIVE SENTIMENT MEASURED BY THE BIG BOARD SHORT INTEREST RATIO ROSE TO 457 FROM 425 THE RATIO IS THE NUMBER OF TRADING DAYS AT THE EXCHANGE'S AVERAGE DAILY TRADING VOLUME THAT WOULD BE REQUIRED TO CONVERT THE TOTAL SHORT INTEREST POSITION AVERAGE DAILY BIG BOARD VOLUME WAS 2713 MILLION SHARES BIG BOARD AND AMEX SHORT INTEREST POSITIONS WERE CALCULATED FOR THE MONTH INCLUDING THE 21 TRADING DAYS THROUGH DEC 8 WITH DEC 15 AS THE SETTLEMENT DATE THE FOLLOWING TABLES SHOW THE BIG BOARD AND AMEX ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 200000 SHARES EXISTED AT MIDDECEMBER OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDNOVEMBER SEE ACCOMPANYING TABLES WSJ DEC 22 1993 9312220091 931222 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BANKERS TRUST NEW YORK CORP A SHELF OFFERING FOR UP TO 500 MILLION OF DEBT SECURITIES AND WARRANTS FIRST CENTRAL FINANCIAL CORP AN OFFERING OF 307692 COMMON SHARES GENEVA STEEL CO AN OFFERING OF UP TO 125 MILLION OF SENIOR NOTES VIA CITICORP SECURITIES INC AND SALOMON BROTHERS PROGRESSIVE CORP A SHELF OFFERING FOR UP TO 200 MILLION OF DEBT SECURITIES PETROLEUM HELICOPTERS INC A SHELF OFFERING OF UP TO 170000 NONVOTING COMMON SHARES REYNOLDS METALS CO AN OFFERING OF NINE MILLION SHARES OF CONVERTIBLE PREFERRED STOCK VIA MERRILL LYNCH & CO PIERCE FENNER & SMITH INC AND CS FIRST BOSTON CORP ROCHESTER TELEPHONE CORP AN OFFERING OF FIVE MILLION COMMON SHARES VIA SALOMON BROTHERS INC LEHMAN BROTHERS AND SMITH BARNEY SHEARSON SOFTDESK INC AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA HAMBRECT & QUIST INC AND WESSELS ARNOLD & HENDERSON USX CORP A SHELF OFFERING OF UP TO 850 MILLION OF SECURITIES 9312220090 931222 WHO'S NEWS GANNETT CO GANNETT CO ARLINGTON VA THIS NEWS AND INFORMATION COMPANY NAMED SENIOR LEGAL COUNSELS KRISTIN H KENT 43 YEARS OLD AND BARBARA W WALL 39 VICE PRESIDENTS WENDELL J VANLARE 48 FORMERLY DIRECTOR LABOR RELATIONS WAS NAMED VICE PRESIDENT LABOR COUNSEL 9312220089 931222 POLITICS & POLICY US SLOWLY REALIZING VOTE RESULTS MEAN RUSSIA CAN'T BE TREATED LIKE A HIBERNATING BEAR NOW BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SECRETARY OF STATE WARREN CHRISTOPHER CALLED RUSSIA'S PARLIAMENTARY ELECTIONS A WAKEUP CALL FOR MOSCOW'S DIVIDED AND DISORGANIZED REFORMERS BUT THE SURPRISINGLY STRONG SHOWING BY BOTH ULTRANATIONALISTS AND COMMUNISTS COULD PROVE TO BE A RUDE AWAKENING FOR PRESIDENT CLINTON AS WELL BEFORE THE ELECTIONS MR CLINTON'S UNSWERVING SUPPORT FOR PRESIDENT BORIS YELTSIN SEEMED BOTH SAVVY FOREIGN POLICY AND GOOD DOMESTIC POLITICS BUT WHETHER ONE VIEWS THE VOTE AS A PROTEST AGAINST ECONOMIC HARDSHIP OR A REFLECTION OF A DARKER SIDE OF THE RUSSIAN PSYCHE BOTH THE POLITICS AND POLICY OF DEALING WITH RUSSIA HAVE BECOME MORE COMPLICATED THE PROSPECT OF A LESS FRIENDLY LESS MALLEABLE OR LESS STABLE RUSSIA COULD UNDERCUT MR CLINTON'S PLANS TO CUT 100 BILLION FROM THE FIVEYEAR DEFENSE SPENDING PLAN LEFT BY PRESIDENT BUSH THE ELECTION OUTCOME WILL ALSO UP THE PRESSURE ON THE ADMINISTRATION TO EXTEND MEMBERSHIP IN THE NORTH ATLANTIC TREATY ORGANIZATION OR SOME FORM OF SECURITY GUARANTEES TO EASTERN EUROPE'S SKITTISH NEW DEMOCRACIES WHICH NATIONALIST LEADER VLADIMIR ZHIRINOVSKY IN SOME OF HIS MORE DELICATE RAVINGS HAS THREATENED TO RECONQUER MR CLINTON AND HIS TOP ADVISERS HAVE ALREADY SAID THAT THE WEST MUST BE MORE SYMPATHETIC TO THE SUFFERING OF THE RUSSIAN PEOPLE AND MORE LENIENT IN ITS LENDING TERMS OR FACE AN EVEN MORE FRIGHTENING BACKLASH IN PRESIDENTIAL ELECTIONS SCHEDULED FOR 1996 THEIR NEW RALLYING CRY IS LESS SHOCK AND MORE THERAPY THAT PRESCRIPTION HOWEVER MAY NOT SIT WELL WITH EITHER INTERNATIONAL LENDERS OR MR CLINTON'S OWN TREASURY SECRETARY IN AN INTERVIEW THIS WEEK TREASURY SECRETARY LLOYD BENTSEN EMPHASIZED THAT FOR ECONOMIC REFORM TO SUCCEED IN RUSSIA YOU ALSO HAVE TO KEEP PRESSURE ON THE REFORMERS I DON'T KNOW THAT WHEN YOU HAVE 10 TO 20 INFLATION A MONTH IN RUSSIA THAT YOU'RE BEING TOO TOUGH ON REFORM US OFFICIALS SAY THAT ON THE ISSUES THAT COUNT DEMOCRACY FREE MARKETS AND A NONTHREATENING FOREIGN POLICY THEY EXPECT MR YELTSIN TO STAY THE COURSE IN HIS MEETING LAST WEEK WITH VICE PRESIDENT AL GORE PRESIDENT YELTSIN WAS EMPHATIC UNAMBIGUOUS AND VERY REASSURING THAT THE RUSSIAN FEDERATION WOULD CONTINUE TO RESPECT ITS NEIGHBORS SAYS STROBE TALBOTT THE PRESIDENT'S TOP ADVISER ON RUSSIAN POLICY HOWEVER AFTER THE ELECTION AMERICANS MAY WONDER HOW MUCH LONGER MR YELTSIN WILL BE IN CHARGE EARLY SIGNS SUGGEST MR YELTSIN WILL ALMOST CERTAINLY SLOW THE PACE OF ECONOMIC REFORM HOWEVER AND ON FOREIGN POLICY ISSUES FROM SANCTIONS AGAINST OLD ALLIES IRAQ OR SERBIA TO CHARGES OF RUSSIAN MEDDLING ALONG ITS PERIPHERY HE WILL HAVE TO ASSUAGE THE WOUNDED PRIDE OF VOTERS PARTICULARLY MILITARY OFFICERS WHO VOTED OVERWHELMINGLY FOR MR ZHIRINOVSKY FOR ALL THE FRETTING PENTAGON PLANNERS SAY THAT THE RUSSIAN MILITARY WOULD NEED FIVE YEARS OF SERIOUS REBUILDING BEFORE IT AGAIN POSED A CREDIBLE THREAT TO EUROPEAN SECURITY STILL THEY WERE NERVOUS ENOUGH ABOUT THE ELECTION RESULTS THAT AT THEIR MEETING LAST WEEK THE FIRST SINCE THE VOTE OUTGOING DEFENSE SECRETARY LES ASPIN AND THE JOINT CHIEFS OF STAFF DISCUSSED JUST TWO ISSUES RUSSIA AND NEXT YEAR'S DEFENSE BUDGET IT'S NOT SO MUCH A SPECIFIC THREAT THAT RUSSIA'S GOING TO RENEW THE COLD WAR IT'S JUST A SIGN OF THE ENORMOUS TURMOIL AND UNCERTAINTY OUT THERE SAYS FORMER BUSH NATIONAL SECURITY ADVISER AND RETIRED GENERAL BRENT SCOWCROFT ECHOING AN ARGUMENT HEARD THROUGHOUT THE UNIFORMED MILITARY ONE LIKELY BENEFICIARY OF THE RUSSIA SCARE COULD BE THE NAVY'S ATTACK SUBMARINE FORCE WHICH AIDES TO MR ASPIN HAD BEEN THINKING ABOUT HALVING IN A BUDGETSAVING MOVE NOW NAVY OFFICIALS MAKE THE ARGUMENT THAT IN SUCH UNCERTAIN TIMES IT WOULD BE ESPECIALLY FOOLISH TO CUT BACK ON SUBMARINES SINCE THEY ARE PARTICULARLY USEFUL LISTENING POSTS THAT ARGUMENT IS EXPECTED TO FIND A SYMPATHETIC EAR IN MR CLINTON'S NEWLY NOMINATED DEFENSE SECRETARY BOBBY INMAN A RETIRED NAVY ADMIRAL AND A FORMER CHIEF OF NAVAL INTELLIGENCE THE NATO DEBATE COULD ALSO HEAT UP AS MR CLINTON PREPARES FOR HIS FIRST NATO SUMMIT IN MIDJANUARY THE ADMINISTRATION'S CURRENT POLICY INTENDED TO AVOID OFFENDING MOSCOW ESSENTIALLY POSTPONES ANY CONCRETE MOVES TO OPEN THE ALLIANCE TO EASTERN EUROPE'S NEW DEMOCRACIES BEFORE LAST WEEK'S ELECTION THE EASTERN EUROPEANS SEEMED RESIGNED TO THIS APPROACH NO LONGER ON A TRIP TO WASHINGTON LAST WEEK POLAND'S FOREIGN MINISTER ANDRZEJ OLECHOWSKI WARNED THAT THE ELECTIONS PROVED RUSSIAN IMPERIAL INSTINCTS ARE VERY MUCH ALIVE POLAND MUST NOT BE LEFT OUT OF THE WESTERN SECURITY SYSTEM HE WARNED BECAUSE HIS COUNTRY COULD BECOME A NUCLEUS OF INSTABILITY AND CONFLICT SEN RICHARD LUGAR R IND ONE OF THE ADMINISTRATION'S KEY ALLIES ON RUSSIAN AID BUT ALSO A LEADING PROPONENT FOR BRINGING EASTERN EUROPE INTO NATO SAYS HE HOPES TO MAKE ANOTHER RUN AT CHANGING MR CLINTON'S MIND BUT THE PRESIDENT'S AIDES AND PARTICULARLY MR TALBOTT ARE EXPECTED TO RESIST ARGUING THAT THIS WOULD BE THE WORST POSSIBLE TIME TO FEED RUSSIAN PARANOIA AND FEAR OF ENCIRCLEMENT ON ECONOMIC POLICY US OFFICIALS ARE LOOKING FOR WAYS TO EASE THE PAIN OF RUSSIA'S ECONOMIC REFORM THEY CONCEDE THAT THERE'S NEITHER THE CASH NOR THE POLITICAL WILL IN THE WEST TO CREATE A SOCIAL SAFETY NET FOR RUSSIAN WORKERS LAID OFF IN THE ATTEMPT TO SHIFT TO A MARKET ECONOMY BUT THEY SAY THEY ARE HOPING TO GIVE NEW PRIORITY TO SOCIAL CONCERNS WHEN THEY DIVVY UP THE 2 BILLION CONGRESS HAS ALREADY APPROVED FOR RUSSIAN AID IN FISCAL 1994 THEY ARE ALSO HOPING TO REVIVE AN ALREADY PLEDGED 3 BILLION INTERNATIONAL PRIVATIZATION FUND HERALDED BY MR CLINTON AT LAST SUMMER'S SUMMIT OF THE SEVEN LEADING INDUSTRIALIZED NATIONS AS A MODEL FOR TEMPERING ECONOMIC REFORM WITH SOCIAL CONCERNS THE FUND HAS GONE NOWHERE DUE TO BICKERING AMONG THE ALLIES THE RUSSIANS AND THE INTERNATIONAL BANKS THE REAL MONEY AND THE BEST HOPE FOR RUSSIAN AID SAY OFFICIALS STILL LIES WITH THE INTERNATIONAL LENDERS THE INTERNATIONAL MONETARY FUND HAS RELEASED TO RUSSIA ONLY HALF OF A PROMISED 3 BILLION FUND BECAUSE OF MOSCOW'S FAILURES TO MEET BUDGET DEFICIT AND INFLATION TARGETS AND MR GORE CRITICIZED THE FUND FOR NOT BEING SENSITIVE TO THE SUFFERING OF THE RUSSIAN PEOPLE BUT IT'S NOT CLEAR HOW MUCH OF A FIGHT THE ADMINISTRATION IS LOOKING FOR I DON'T THINK YOU GAIN BY HAVING AN OPEN CONFRONTATION WITH THE IMF SAYS TREASURY SECRETARY BENTSEN WHO BELIEVES THAT RUSSIAN REFORM WILL NOT SUCCEED WITHOUT CONTINUED DISCIPLINE WITH HIS SUMMIT WITH MR YELTSIN JUST THREE WEEKS AWAY MR CLINTON WILL ALSO HAVE TO DECIDE EXACTLY HOW MUCH ATTENTION HE WILL PAY TO THE NEW RUSSIAN LEGISLATURE WHICH INCLUDES COMMUNISTS AND FASCISTS AS WELL AS THE LARGE BULK OF INDEPENDENTS WITHOUT TAKING ANY OF THE SPOTLIGHT AWAY FROM MR YELTSIN AND THE PRESIDENT'S POLITICAL HANDLERS WILL HAVE TO DECIDE HOW THEY WILL PLAY THE MOSCOW VISIT AT HOME UNTIL NOW MR CLINTON AND HIS ADVISERS HAVE HAILED THEIR RUSSIA POLICY AS NOT ONLY MR CLINTON'S NO 1 FOREIGN POLICY PRIORITY BUT ALSO HIS NO 1 FOREIGN POLICY SUCCESS IN THE WAKE OF THE ELECTIONS SOME MAY ARGUE FOR TONING THAT LINE DOWN DAVID WESSEL AND THOMAS E RICKS CONTRIBUTED TO THIS ARTICLE 9312220088 931222 TEXAS JOURNAL HEARD IN TEXAS SOME LUSTER IS SEEN IN PAWNSHOPS AS CHAINS SHED THEIR DINGY IMAGE BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN THE PAWNSHOP IS WORKING TO POLISH ITS SQUALID IMAGE THOUGH MANY STILL SEE PAWNSHOPS AS DISAGREEABLE AND DISREPUTABLE SEVERAL CHAINS HAVE GONE PUBLIC AND UPSCALE MANY ANALYSTS AND MONEY MANAGERS SAY PROFIT OPPORTUNITIES EXIST FOR INVESTORS WILLING TO GET TO KNOW THE INDUSTRY TODAY'S PAWNSHOP IS NOT SOME FAT GUY WITH A GUN IN HIS BELT AND ONE EYE MAKING LOANS ON STOLEN GOODS SAYS RAUSCHER PIERCE REFSNES ANALYST DENNIS VAN ZELFDEN THE PUBLICLY TRADED PAWNSHOP CHAINS ARE AMONG THE VERY BEST IN RETAIL AND ARE FILLING A HUGE NEED IN SPECIALTY FINANCE IT'S A GROWTH INDUSTRY AND IT'S LEGITIMATE THREE OF THE COUNTRY'S FOUR PUBLICLY TRADED CHAINS ARE BASED IN TEXAS INDUSTRY LEADER CASH AMERICA INTERNATIONAL FORT WORTH OPERATES 251 PAWNSHOPS IN 10 STATES AND 29 STORES IN THE UK AUSTIN'S EZCORP OVERSEES ABOUT 200 EZPAWN STORES IN NINE STATES BOTH CHAINS ARE EXPANDING RAPIDLY THERE'S ALSO FIRST CASH OF ARLINGTON WHICH WITH A MARKET CAPITALIZATION OF 135 MILLION AND 25 STORES IN TWO STATES HASN'T ATTRACTED MUCH ATTENTION YET OVER THE PAST FEW YEARS CASH AMERICA AND EZCORP HAVE WORKED TO IMPROVE THE IMAGE AND OPERATIONS OF PAWNSHOPS INDEED STORES ARE BRIGHT AND ADVERTISING GLOSSY POINTOFSALE SYSTEMS TRACK LOANS AND INVENTORY AND THE SHOPS CARRY AN ARRAY OF EXPENSIVE MERCHANDISE FROM MOUNTAIN BIKES TO COMPUTERS THIS MODERN IMAGE HAS HELPED THE TWO CHAINS APPEAL TO A BROADER SEGMENT OF THE POPULATION DEMOGRAPHICS SHOW THE AVERAGE PAWNSHOP CUSTOMER HAS AN ANNUAL INCOME OF 24000 TO 50000 TO BE SURE NOT EVERYONE IS SOLD ON PAWNSHOPS FOR THE QUARTER ENDED SEPT 30 CDA/SPECTRUM A ROCKVILLE MD PROVIDER OF SECURITIES INFORMATION SAYS INSTITUTIONAL INVESTORS DUMPED NEARLY 37 MILLION CASH AMERICA SHARES SELLERS OF EZCORP OUTNUMBERED BUYERS BY ABOUT 13000 SHARES OVER THE PAST YEAR USAA INVESTMENT MANAGEMENT'S MUTUAL AGGRESSIVE GROWTH FUND LIQUIDATED ITS POSITION IN BOTH COMPANIES SELLING ONE MILLION SHARES ONE FUND MANAGER QUESTIONS THE COMPANIES' ACCOUNTING METHODS NOTING INTEREST ON ITEMS FORFEITED IS INCLUDED IN REVENUE STREAMS AS INTEREST INCOME THE COMPANIES POINT OUT THAT THIS IS REQUIRED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND THAT THEY BOOK AN EQUAL AMOUNT ON THE RECEIVABLES SIDE OF THE LEDGER EVERYTHING BALANCES ONCE A FORFEITED ITEM IS SOLD AND DESPITE THE IMAGE MAKEOVER THE BUSINESS STILL HAS A WAYS TO GO TO FIGHT THE STEREOTYPICAL VIEW OF PAWNSHOPS AS PURVEYORS OF ILLGOTTEN GOODS IN A LOT OF WAYS THESE CHAINS ARE TREATED LIKE THE FUNERALHOME BUSINESS SAYS DAVID HOCHSTIM ANALYST AT BEAR STEARNS IN NEW YORK TOO BAD SAY THOSE BUYING THE STOCK BECAUSE EZCORP AND CASH AMERICA ARE PROFITING NICELY BY SERVICING THE DEMAND FOR SHORTTERM CREDIT AMONG THE MILLIONS WHO DON'T HAVE ACCESS TO TRADITIONAL FINANCE FOR EXAMPLE RETURNSONINVESTMENT IN A NEW STORE'S FIRST YEAR TYPICALLY TOP 20 WHILE SECONDYEAR RETURNS CAN TOP 50 DOUBLE THAT OF THE TYPICAL RETAILER PAWNSHOPS PROFIT TWO WAYS FOREMOST THEY ARE LENDERS OFFERING SHORTTERM SMALLAMOUNT LOANS SECURED BY MARKETABLE COLLATERAL SUCH AS WEDDING RINGS AND TELEVISIONS LIKE BANKS PAWNSHOPS PROFIT BY CHARGING INTEREST THE AVERAGE PAWN LOAN IN TEXAS FOR EXAMPLE CARRIES A 240 ANNUAL RATE THE IDEAL CUSTOMER IS ONE WHO PAWNS THE SAME ITEM NUMEROUS TIMES WHICH NEARLY 70 OF CUSTOMERS DO IF HOWEVER A CUSTOMER FORFEITS A PAWNED ITEM THE MERCHANDISE IS PUT UP FOR SALE WITH A PRICE TAG THAT COVERS AT LEAST THE AMOUNT OF THE LOAN AND THE UNPAID INTEREST EXPENSE IN THAT ASPECT PAWNSHOPS ACT MUCH LIKE RETAILERS CASH AMERICA FOR EXAMPLE REPORTED MORE THAN 963 MILLION IN MERCHANDISE SALES OR 60 OF TOTAL REVENUE FOR THE FIRST NINE MONTHS OF 1993 AT EZCORP SALES AT STORES OPEN A YEAR OR MORE HAVE INCREASED 30 TO 50 A MONTH FROM YEAREARLIER LEVELS DESPITE THEIR STRONG RETAIL BIAS YOU HAVE TO THINK OF PAWNSHOPS AS LENDING INSTITUTIONS BECAUSE THAT'S THEIR STRENGTH AND THAT'S WHERE THEY MAKE THEIR MONEY SAYS EDWARD ANTOIAN PORTFOLIO MANAGER OF DELAWARE MANAGEMENT'S DELCAP GROWTH FUND WHICH OWNS MORE THAN 11 MILLION CASH AMERICA SHARES AT BOTH COMPANIES PAWN SERVICE CHARGES CONTRIBUTE ABOUT TWOTHIRDS OF NET REVENUE WHICH INCLUDES THE COST OF GOODS SOLD THIS SUMMER EZCORP'S STOCK DROPPED 10 OR NEARLY 50 IN ONE DAY AFTER DISAPPOINTING INVESTORS WITH EARNINGS OF 10 CENTS A SHARE FOR THE THIRD QUARTER ENDED JUNE 30 ALTHOUGH THAT WAS 67 HIGHER THAN A YEAR EARLIER ANALYSTS HAD ANTICIPATED 19 CENTS A SHARE EZCORP BOUNCED BACK WITH RECORD FOURTHQUARTER PROFIT AND WITH CUSTOMER TRAFFIC IN THE CURRENT QUARTER DOUBLE WHAT IT WAS THREE MONTHS AGO EZCORP SAYS IT FEELS VERY COMFORTABLE WITH ANALYSTS' ESTIMATES OF 19 CENTS TO 20 CENTS A SHARE FOR THE CURRENT QUARTER SOUTHCOAST SECURITIES ANALYST ROBIN MURCHISON FORESEES AN 18 TO 20 STOCK PRICE WITHIN A YEAR CASH AMERICA LIKEWISE DISAPPOINTED INVESTORS WHEN IT REPORTED FLAT PROFIT FOR THE FIRST QUARTER ENDED MAR 31 THE COMPANY'S STOCK TUMBLED FROM A HIGH OF 12875 ADJUSTED FOR AN APRIL 2FOR1 SPLIT TO 750 ANALYSTS EXPECT IT TO REACH 12 TO 15 IN THE COMING YEAR THIRD QUARTER ENDED SEPT 30 YEAR ENDED SEPT 30 FOURTH QUARTER ENDED SEPT 30 LONE STAR CASINO SURGED 19 LAST WEEK ON NEWS THAT THE MISSISSIPPI GAMING COMMISSION VOTED TO APPROVE THE HOUSTON COMPANY'S SITE FOR A PROPOSED 250ACRE CASINO COMPLEX AND RESORT AT BAY ST LOUIS MISS LONE STAR ALSO SAID IT AGREED TO PURCHASE 55 ACRES OF LAND IN BILOXI ON WHICH IT PLANS TO BUILD A 60000SQUAREFOOT GAMBLING COMPLEX AND A 300ROOM HOTEL GUNDLE ENVIRONMENTAL SYSTEMS THE WEEK'S BIGGEST LOSER SLIPPED MORE THAN 30 TO 725 A SHARE THE HOUSTON MAKER OF SANITARY LANDFILL LININGS REPORTED THAT IT EXPECTS EARNINGS FOR THE THIRD QUARTER ENDING DEC 31 WILL BE SIGNIFICANTLY LOWER THAN ANALYSTS ESTIMATES OF 21 CENTS TO 23 CENTS A SHARE A YEAR EARLIER GUNDLE HAD PROFIT OF SIX CENTS A SHARE TEXAS INDUSTRIES SHARES TRADED AT MORE THAN 102 TIMES THEIR AVERAGE DAILY VOLUME THE PRODUCER OF STEEL AND CONSTRUCTION MATERIALS SAID CHAPARRAL STEEL MIDLOTHIAN OF WHICH IT OWNS 81 HAD EARNINGS OF 15 CENTS A SHARE FOR THE SECOND QUARTER ENDED NOV 30 ANALYSTS HAD EXPECTED JUST THREE CENTS A SHARE 9312220087 931222 BUSINESS BRIEF REGENCY HEALTH CARE ENTERPRISES TO MERGE IN STOCK TRANSACTION TWO CALIFORNIA NURSING HOME COMPANIES REGENCY HEALTH SERVICES INC AND CARE ENTERPRISES INC AGREED TO MERGE IN A STOCK TRANSACTION WITH AN INDICATED VALUE OF ABOUT 114 MILLION THE SUCCESSOR COMPANY REGENCY HEALTH SERVICES WILL OPERATE 82 NURSING HOMES AND OTHER LONGTERMCARE SPECIALTY FACILITIES ANNUAL REVENUE WILL APPROACH 400 MILLION NEXT YEAR SAID RICK MATROS CARE ENTERPRISES' PRESIDENT AND CHIEF OPERATING OFFICER UNDER TERMS OF THE AGREEMENT EACH SHARE OF CARE ENTERPRISES' STOCK WILL BE CONVERTED INTO 071 SHARE OF REGENCY COMMON STOCK CARE ENTERPRISES BASED IN TUSTIN CALIF HAS ABOUT 134 MILLION SHARES REGENCY BASED IN NEWPORT BEACH CALIF HAS ABOUT 68 MILLION SHARES YESTERDAY REGENCY SHARES FELL 50 CENTS TO CLOSE AT 12 IN AMERICAN STOCK EXCHANGE TRADING GIVING THE TRANSACTION THE INDICATED 114 MILLION VALUE CARE ENTERPRISES' SHARES ROSE 150 TO 7875 ON THE NASDAQ STOCK MARKET THE COMPANY RESULTING FROM THE MERGER WILL BE THE LEADING PROVIDER OF LONGTERM CARE IN CALIFORNIA SAID REGENCY CHAIRMAN AND CHIEF EXECUTIVE CECIL MAYS WHO WILL RETAIN THOSE TITLES AFTER THE TRANSACTION CARE ENTERPRISES' CHAIRMAN AND CHIEF EXECUTIVE JOHN W ADAMS WILL OWN STOCK IN THE NEW REGENCY BUT WON'T BE AN OFFICER SAID MR MATROS WHO WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER REGENCY PLANS TO TO MOVE ITS HEADQUARTERS TO CARE ENTERPRISES' MORE SPACIOUS QUARTERS IN TUSTIN THE TRANSACTION IS EXPECTED TO BE COMPLETED BY APRIL 1 MR MATROS SAID 9312220086 931222 TEXAS JOURNAL YOU MIGHT WANT TO FINISH EATING BEFORE READING ON BY LAURA JOHANNES SPECTRUM DYNAMICS INC IS DESIGNING A VIRTUAL REALITY EXPERIENCE SO TASTELESS THAT IT MIGHT JUST TEACH KIDS A FEW LESSONS THEY WON'T FORGET VIRTUAL REALITY IN WHICH 3D COMPUTERGENERATED GRAPHICS SIMULATE ANY NUMBER OF EXPERIENCES AND ENVIRONMENTS HAS BEEN USED TO TRAIN ASTRONAUTS AND SOLDIERS NOW IN THE HUMAN DIGESTIVE SYSTEM FLY THROUGH WHICH HOUSTONBASED SPECTRUM IS CREATING FOR THE OMNIPLEX SCIENCE MUSEUM IN OKLAHOMA CITY THE VIEWER PUTS ON A HEADSET AND IS SUDDENLY BEING CHEWED UP BY A GIANT SET OF TEETH THEN AFTER SLIDING DOWN THE ESOPHAGUS THE VIEWER LANDS IN THE STOMACH SURROUNDED BY PARTIALLY DECOMPOSED FOOD WE HOPE PEOPLE WON'T FEEL NAUSEATED SAYS FRED GRISSOM A FREELANCE WRITER FOR AVIAN GRAPHICS A LEAGUE CITY COMPANY THAT SPECTRUM HIRED TO WRITE THE SOFTWARE AND SOUNDTRACK FOR THE EXHIBIT WHICH WILL OPEN IN FEBRUARY WE'LL HAVE TO PUT A DISCLAIMER IN THE BEGINNING WE'LL ASK PEOPLE TO CLOSE THEIR EYES IF THEY FEEL FUNNY AFTER LEAVING THE STOMACH THE VIEWER SCREECHES THROUGH THE TWISTS AND TURNS OF THE SMALL INTESTINE WITH THE FULL STEREO EFFECT OF A FAST ROLLER COASTER MR GRISSOM SAYS THEN AFTER A BRIEF RIDE THROUGH THE LARGE INTESTINE THE PROGRAM WILL END LITERALLY WITH A SPLASH SAYS MR GRISSOM WE HAVEN'T DECIDED WHETHER WE'RE GOING TO PUT A FLUSH IN THERE 9312220084 931222 TWO LAWMAKERS START INQUIRY INTO PURCHASE OF DREYFUS BY MELLON WASHINGTON TWO CONGRESSIONAL LEADERS SAID THE PROPOSED PURCHASE OF DREYFUS CORP BY MELLON BANK CORP RAISES SERIOUS ISSUES INVOLVING BANK SAFETY AND PROTECTION OF INVESTORS WHO BUY DREYFUS MUTUAL FUNDS REP HENRY GONZALEZ D TEXAS CHAIRMAN OF THE HOUSE BANKING COMMITTEE AND REP JOHN DINGELL D MICH CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE LAUNCHED AN INVESTIGATION OF THE IMPLICATIONS OF THE 17 BILLION TRANSACTION IN THE PAST BOTH CHAIRMEN HAVE BEEN UNSYMPATHETIC TO BANKS' EFFORTS TO OFFER A BROADER RANGE OF SECURITIES AND INSURANCE PRODUCTS IN A LETTER TO COMPTROLLER OF THE CURRENCY EUGENE LUDWIG WHO MUST DECIDE WHETHER TO APPROVE THE TRANSACTION THEY ASKED A NUMBER OF QUESTIONS THAT REFLECT CONCERNS THAT THE PURCHASE MAY BREAK DOWN LEGAL BARRIERS DESIGNED TO SEPARATE BANKING FROM THE SECURITIES BUSINESS MR LUDWIG HAS SAID HE FAVORS ALLOWING HEALTHY BANKS TO OFFER A BROADER RANGE OF FINANCIAL SERVICES THE LAWMAKERS ASKED MR LUDWIG TO ANSWER A SERIES OF QUESTIONS BY JAN 7 THEY ALSO ASKED FOR INFORMATION FROM THE CHAIRMEN OF THE SECURITIES AND EXCHANGE COMMISSION MELLON AND DREYFUS ALTHOUGH THE CONGRESSIONAL COMMITTEES COULD HOLD HEARINGS ON THE PROPOSED TRANS ACTION THE AUTHORITY TO APPROVE OR DISAPPROVE THE DEAL LIES WITH THE COMPTROLLER 9312220083 931222 LEISURE & ARTS BOOKSHELF PARODIES FOR YULETIDE FROM MX BERBOM BY ROGER KIMBALL A CHRISTMAS GARLAND WOVEN BY MAX BEERBOHM YALE UNIVERSITY PRESS 197 PAGES 25 IS JUST THE THING TO BANISH SCROOGE FIRST PUBLISHED IN 1912 THIS FUNNY COLLECTION OF 17 LITERARY PARODIES ALL ON OR NEAR A CHRISTMAS THEME HAS LOST NONE OF ITS SPARKLE AND THIS NEW FACSIMILE EDITION IS AS HANDSOME AND ELEGANT AS THE HANDSOME AND ELEGANT SIR HENRY MAXIMILIAN BEERBOHM 18721956 COULD HAVE WISHED EDITED WITH AN ENTERTAINING AND INFORMATIVE INTRODUCTION BY THE TROLLOPE BIOGRAPHER N JOHN HALL THE BOOK IS PRINTED ON GOOD PAPER BOASTS A SEWN BINDING AND INCLUDES 24 CARICATURES BY BEERBOHM OF MANY OF THE FRIENDS AND FOES WHO CAUGHT HIS PARODISTIC EYE INCLUDING HENRY JAMES HG WELLS THOMAS HARDY RUDYARD KIPLING GEORGE MEREDITH HILAIRE BELLOC AND GEORGE BERNARD SHAW WHOSE TYPICAL COMBINATION OF FAKE HUMILITY AND BOMBASTIC SELFADORATION IS MOCKED IN A HIGHMINDED INTRODUCTION TO A NONEXISTENT PLAY BEERBOHM A CRITIC ONCE WROTE SEEMED TO HAVE TEMPORARY LOANS OF THEIR VERY MINDS NOT ONLY DID HE MANAGE TO SOUND LIKE HIS VICTIMS BUT HE ALSO SEEMED TO BECOME THEM MOST VIVIDLY IN HIS PERIPHRASTIC PARODY OF HENRY JAMES SPORTING THE FAUXJAMESIAN TITLE THE MOTE IN THE MIDDLE DISTANCE THIS TALE BY HNRY JAMS AS HE APPEARS AMUSINGLY ILLDISGUISED IS ABOUT TWO CHILDREN KEITH AND EVA MODELED ON MERTON AND KATE IN THE WINGS OF THE DOVE WHO AGONIZE OVER WHETHER TO PEEK INTO THEIR CHRISTMAS STOCKINGS BEFORE NURSE COMES TO WAKE THEM UP ON CHRISTMAS MORNING HERE IS THE OPENING IT WAS WITH THE SENSE OF A FOR HIM VERY MEMORABLE SOMETHING THAT HE PEERED NOW INTO THE IMMEDIATE FUTURE AND TRIED NOT WITHOUT COMPUNCTION TO TAKE THAT PERIOD UP WHERE HE HAD PROSPECTIVELY LEFT IT BUT JUST WHERE THE DEUCE HAD HE LEFT IT THE CONSCIOUSNESS OF DUBIETY WAS FOR OUR FRIEND NOT THIS MORNING QUITE YET CLEANCUT ENOUGH TO OUTLINE THE FIGURES ON WHAT SHE HAD CALLED HIS HORIZON' BETWEEN WHICH AND HIMSELF THE TWILIGHT WAS INDEED OF A QUALITY SOMEWHAT INTIMIDATING AH THE COMPLEX UNCERTAINTIES OF LIFE YOUNG KEITH IS AQUIVER WITH THEM BUT HIS SENSE OF THE ONE THING IT DIDN'T BLOCK OUT FROM HIS PURVIEW BEERBOHM ROLLS ON ENABLED HIM TO LAUNCH AT EVA A SPECULATION AS TO JUST HOW FAR SANTA CLAUS HAD FOR THE PARTICULAR OCCASION GONE THAT THIS IS INSPIRED EVEN JAMES RECOGNIZED ACKNOWLEDGING HIS WONDER AND DELIGHT WITH THE BOOK DECLARING IT A LITTLE MASTERPIECE AND THE MOST INTELLIGENT THAT HAS BEEN PRODUCED IN ENGLAND FOR MANY A LONG DAY WHILE MANY OF BEERBOHM'S SPOOFS ARE AS MUCH ACTS OF HOMAGE AS DISPLAYS OF RIDICULE AN ELEMENT OF AGREEABLE MALICE COMES THROUGH IN OTHERS NOTABLY IN THOSE OF RDYRD KPLNG AND HG WLLS CONSIDER PC X 36 THE CHRISTMAS EFFORT BY RDYRD KPLNG IT IS CHRISTMAS EVE AND CONSTABLE JUDLIP IS HAVING A BAD NIGHT AVENT 'AD SO MUCH AS A KICK AT A LORST DORG CHRISTMAS EVE AIN'T WOT IT WAS' BUT LO WHO IS THAT EMERGING FROM A CHIMNEYPOT SANTA CLAUS OF COURSE WHOM JUDLIP PROMPTLY COLLARS BEERBOHM'S PARODY OF KIPLING IS THE OPPOSITE OF AFFECTIONATE YET HIS LAMPOON SAVAGE AS IT IS MANAGES TO COMMUNICATE SOMETHING OF THE RUDE VITALITY THAT MADE KIPLING A FORCEFUL WRITER THIS WAS PART OF BEERBOHM'S GENIUS HE WAS ABLE TO ASSIMILATE AND REPRODUCE WHAT REPELLED HIM AS EFFECTIVELY AS WHAT ATTRACTED HIM SN BEHRMAN RIGHTLY NOTED THAT BEERBOHM SHIED AWAY FROM LUNACY NOT ONLY IN ITS VIOLENT FORMS BUT ALSO IN ITS MILDER FORMS ONE OF THESE BEING UTOPIANISM ACCORDINGLY HIS SEND UP OF HG WELLS PERKINS AND MANKIND PERFECTLY CAPTURES THE QUASISCIENTIFIC UTOPIANISM THAT THE AUTHOR OF THE TIME MACHINE LIKED TO DISPLAY IN HIS TRACTS AND NOVELS CONTAINING A BRILLIANT PARODYWITHINA PARODY PERKINS AND MANKIND TAKES PLACE IN A JINGLEFREE WORLD IN WHICH CHRISTMAS HAS BEEN REPLACED WITH GENERAL CESSATION DAY IN THE FESTIVAL'S BIG EVENT ALL 90YEAROLDS PARADE TO THE MUNICIPAL LETHAL CHAMBER TO MAKE WAY FOR THE BEAUTIFUL YOUNG BREED OF MEN AND WOMEN WHO IN SIMPLE ARTISTIC ANTISEPTIC GARMENTS ARE DISPORTING THEMSELVES SO GIDDILY ON THIS DAY OF DAYS FROM A PURELY LITERARY POINT OF VIEW ONE OF THE MOST REMARKABLE THINGS ABOUT BEERBOHM'S PARODIES IS THEIR PERFECT CONTROL OF TONE AND DICTION WHEN IT CAME TO REPRODUCING THE SOUND THE TEXTURE THE FEEL OF A WRITER HE HAD PERFECT PITCH CONSIDER THE OPENING OF THE FEAST A TALE BY JSPH CNRD THE HUT IN WHICH SLEPT THE WHITE MAN WAS ON A CLEARING BETWEEN THE FOREST AND THE RIVER SILENCE THE SILENCE MURMUROUS AND UNQUIET OF A TROPICAL NIGHT BROODED OVER THE HUT THAT BAKED THROUGH BY THE SUN SWEATED A VAPOUR BENEATH THE CYNICAL LIGHT OF THE STARS BEERBOHM GOT IT ALL THE SETTING THE RACIAL TENSION EVEN CONRAD'S PENCHANT FOR POSTPOSITIVE ADJECTIVES THAT MR WILHIAMS THE PROTAGONIST TURNS OUT TO BE CHRISTMAS DINNER FOR THE NATIVES IS ONLY AN ADDED BONUS 9312220082 931222 WHO'S NEWS ALAMCO INC ALAMCO INC CLARKSBURG WVA JAMES H WEBER 60 YEARS OLD A SELFEMPLOYED BUSINESS AND FINANCIAL CONSULTANT FROM PITTSBURGH WAS NAMED A DIRECTOR OF THIS NATURAL GAS AND OIL CONCERN HIS APPOINTMENT INCREASES BOARD MEMBERSHIP TO SEVEN 9312220081 931222 DIVIDEND NEWS CHEMICAL BANKING CORP CHEMICAL BANKING CORP NEW YORK BOOSTED ITS QUARTERLY DIVIDEND 15 TO 38 CENTS A SHARE FROM 33 CENTS A SHARE PAYABLE JAN 31 1994 TO SHAREHOLDERS OF RECORD JAN 6 1994 THE INCREASE IS THE SECOND THIS YEAR FOR THE BANK HOLDING COMPANY WHICH IN MARCH RAISED ITS DIVIDEND 10 A SPOKESMAN SAID THE MOVE REFLECTS CHEMICAL'S PERFORMANCE AND THE OUTLOOK FOR THE COMPANY 9312220078 931222 BUSINESS BRIEF PWA CORP AIR CANADA'S OFFER TO BUY OVERSEAS ROUTES IS REJECTED THE BOARD OF PWA CORP REJECTED AN OFFER FROM RIVAL AIR CANADA TO BUY THE INTERNATIONAL ROUTES OF PWA'S MAIN OPERATING UNIT CANADIAN AIRLINES INTERNATIONAL LTD THE CALGARY ALBERTA AIRLINE HOLDING COMPANY SAID ITS BOARD TURNED DOWN AIR CANADA'S OFFER OF 250 MILLION CANADIAN DOLLARS US1861 MILLION PLUS ASSUMPTION OF UP TO C800 MILLION OF DEBT BECAUSE IT WOULD ADVERSELY AFFECT THE INTERESTS OF SHAREHOLDERS CREDITORS EMPLOYEES AND CUSTOMERS THE OFFER WAS SIMILAR TO ONE THAT AIR CANADA PRESENTED IN AUGUST WHICH PWA ALSO SPURNED PWA IS ATTEMPTING TO CLOSE A TRANSACTION WITH AMR CORP THAT WOULD INVOLVE A C246 MILLION EQUITY INVESTMENT BY AMR IN CANADIAN AIRLINES AIR CANADA OPPOSES THAT PROPOSED ALLIANCE 9312220077 931222 INTERNATIONAL BRIEF BRITISH GAS PLC CONCERN WILL KEEP BUSINESS BUT FACES EARLY COMPETITION THE UK SAID BRITISH GAS PLC CAN KEEP ITS NATURALGAS TRADING BUSINESS BUT THE GOVERNMENT ACCELERATED THE BREAKUP OF THE COMPANY'S MONOPOLY BY AT LEAST TWO YEARS THE BRITISH DEPARTMENT OF TRADE AND INDUSTRY'S RULING WHICH OVERTURNS PARTS OF AN AUGUST PROPOSAL BY THE MONOPOLIES AND MERGERS COMMISSION IS A PARTIAL VICTORY FOR BRITISH GAS THE COMPANY HAD OPPOSED THE DIVESTITURE OF ITS GASTRADING BUSINESS WHICH SUPPLIES RESIDENTIAL AND COMMERCIAL CUSTOMERS THE DIVESTITURE WOULD HAVE LEFT IT ONLY WITH ITS LARGEST UNIT THE PIPELINE BUSINESS BUT BY USHERING IN EARLY COMPETITION THE UK MADE IT CLEAR THAT BRITISH GAS WILL HAVE TO LOOK OVERSEAS IF IT HOPES TO GROW INVESTORS HAD EXPECTED SOME TINKERING WITH THE COMMISSION REPORT BUT THE ACCELERATED REMOVAL OF BRITISH GAS'S MONOPOLY APPARENTLY SURPRISED THE MARKET YESTERDAY IN LONDON BRITISH GAS SHARES FELL 28 OR 10 PENCE 15 CENTS TO 347 PENCE IN HEAVY TRADING 9312220076 931222 WHO'S NEWS INTERNATIONAL IMAGING MATERIALS INC INTERNATIONAL IMAGING MATERIALS INC AMHERST NY MICHAEL J DOWNEY 49 YEARS OLD WAS NAMED A DIRECTOR OF THIS PRINTER RIBBON MAKER FILLING A VACANCY ON THE EIGHTMEMBER BOARD MR DOWNEY IS PRESIDENT AND A BOARD MEMBER OF THE ASIA PACIFIC FUND INC IN LONDON 9312220075 931222 PENTAGON TO UNVEIL RULES TO IMPLEMENT GAY POLICY WASHINGTON THE PENTAGON IS EXPECTED TO ANNOUNCE TODAY THE REGULATIONS TO IMPLEMENT ITS DON'T ASK DON'T TELL POLICY ON HOMOSEXUALS IN THE MILITARY THE CHANGES TO EXISTING REGULATIONS WHICH WILL BE ANNOUNCED BY DEFENSE SECRETARY LES ASPIN AND PENTAGON GENERAL COUNSEL JAMIE S GORELICK WON'T TAKE EFFECT IMMEDIATELY THE ARMED SERVICES WILL BE GIVEN MORE THAN A MONTH TO MAKE THE CHANGES MS GORELICK IS ALSO EXPECTED TO DISTRIBUTE A SET OF HYPOTHETICAL EXAMPLES AS AN AID TO COMMANDERS IN THE FIELD THE POLICY WAS WORKED OUT THIS YEAR BETWEEN THE WHITE HOUSE THE PENTAGON AND CONGRESS AFTER IT BECAME CLEAR THAT MANY ON CAPITOL HILL AND IN THE MILITARY OBJECTED TO PRESIDENT CLINTON'S PLAN TO LIFT THE BAN ON HOMOSEXUALS IN THE MILITARY 9312220073 931222 BUSINESS BRIEF GENERAL ELECTRIC CO INVESTMENT UNIT IS CHOSEN TO MANAGE ASSETS OF 8 FUNDS GENERAL ELECTRIC CO STAMFORD CONN SAID ITS GE INVESTMENTS UNIT WAS SELECTED TO MANAGE ABOUT 450 MILLION IN US EQUITIES PORTFOLIOS FOR EIGHT PENSION FUNDS AND OTHER INSTITUTIONAL INVESTORS GE INVESTMENTS' NEW CLIENTS INCLUDE CHRYSLER CORP U S WEST INC AIR CANADA THE HALL FAMILY FOUNDATION AND MEAD CORP FOUNDATION GE INVESTMENTS AN INDEPENDENT MONEY MANAGER FOR CORPORATE AND OTHER CLIENTS HAS ABOUT 72 BILLION IN ASSETS UNDER MANAGEMENT IN ITS MULTISTYLE EQUITY PROGRAM INCLUDING ASSETS FROM THE GE PENSION TRUST AND MUTUAL FUNDS 9312220072 931222 BUSINESS BRIEF PROTEON INC SLOW SALES AND WRITEDOWNS MAY CAUSE 4THQUARTER LOSS PROTEON INC PREDICTED A SIGNIFICANT FOURTHQUARTER LOSS DUE TO SLOW SALES AND WRITEDOWNS AND SAID IT HIRED LAZARD FRERES & CO TO EXPLORE WAYS TO INCREASE SHAREHOLDER VALUE THE WESTBOROUGH MASS MAKER OF PRODUCTS FOR COMPUTER NETWORKS SAID THAT IT EXPECTS TO REPORT A FOURTHQUARTER LOSS OF BETWEEN 55 CENTS AND 70 CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 252000 OR TWO CENTS A SHARE IT SAID REVENUE IN THE QUARTER WILL BE LESS THAN 213 MILLION DOWN AT LEAST 32 FROM 316 MILLION A YEAR EARLIER BRUCE BERGMAN WHO JOINED PROTEON AS PRESIDENT AND CHIEF EXECUTIVE EARLIER THIS MONTH SAID THE COMPANY HAS WRITTEN DOWN THE VALUE OF SOME OUTDATED NETWORK ADAPTER CARDS WIDENING THE LOSS HE WARNED THAT MORE CHARGES COULD BE TAKEN IN THE FOURTH QUARTER AS PART OF THE EFFORT RESULTS ARE TO BE REPORTED IN FEBRUARY 9312220071 931222 WHO'S NEWS PHOENIX HOME LIFE MUTUAL INSURANCE CO PHOENIX HOME LIFE MUTUAL INSURANCE CO HARTFORD CONN ROBERT W FIONDELLA 51 YEARS OLD WAS NAMED SUCCESSOR TO JOHN GUMMERE CHAIRMAN AND CHIEF EXECUTIVE WHO PLANS TO RETIRE NEXT YEAR MR FIONDELLA PRESIDENT OF THE INSURANCE CONCERN WILL SUCCEED MR GUMMERE 65 FOLLOWING THE THE COMPANY'S FEB 28 1994 ANNUAL MEETING AT THAT TIME MR GUMMERE AND WILLIAM B WALLACE THE COMPANY'S 64YEAROLD VICE CHAIRMAN ARE SLATED TO RETIRE MR FIONDELLA WILL RETAIN THE TITLE OF PRESIDENT 9312220070 931222 WHO'S NEWS BANC ONE CORP BANC ONE CORP COLUMBUS OHIO BRUCE S BAILEY 57 YEARS OLD WAS NAMED PRESIDENT OF THIS BANK HOLDING COMPANY'S BANC ONE WEST VIRGINIA CORP UNIT FILLING A VACANCY HIS POSITION IS EFFECTIVE JAN 3 MR BAILEY HAS BEEN VICE CHAIRMAN AT THE COMPANY'S BANC ONE INDIANA CORP UNIT BANC ONE WEST VIRGINIA OPERATES 17 BANKS WITH A TOTAL OF 31 BILLION IN ASSETS 9312220069 931222 TEXAS JOURNAL BABES IN TOYLAND A TALE OF A STARTUP BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON AGAINST ALL ODDS TABLE TOYS INC MAY HAVE HIT THE BIG TIME IN AN AGE WHEN GIANTS DOMINATE THE 17 BILLION TOY INDUSTRY THIS TINY FOURYEAROLD TEXAS TOY MAKER HAS A WINNER CAPTURING PRIME SHELF SPACE NATIONWIDE FOR ITS TRADEMARK PRODUCT A PLAY TABLE WITH A SURFACE THAT LEGO BLOCKS SNAP INTO COMPANY FOUNDERS SCOTT AND DONNA BUSKE ESTIMATE THAT TABLE TOYS WILL EARN ITS FIRST SUBSTANTIAL PROFIT THIS YEAR AND THAT SALES WILL DOUBLE TO 6 MILLION BUT GETTING TO THIS POINT HASN'T BEEN EASY INDEED IN MANY WAYS THE BUSKES' STORY ILLUSTRATES JUST HOW HARD IT IS FOR AN ENTREPRENEUR TO SUCCEED IN THE CUTTHROAT WORLD OF CHILDREN'S TOYS EVEN NOW TABLE TOYS HAS TO WORRY ABOUT COPYCATS AND ABOUT WHETHER TO POUR PRECIOUS CASH INTO NEWPRODUCT DEVELOPMENT A BIG COMPANY CAN JUST THROW MONEY AT THIS THROW MONEY AT THAT AND IF IT DOESN'T WORK THEY CAN JUST SET IT ON THE SHELF AND MOVE TO THE NEXT IDEA SAYS MS BUSKE A SMALL COMPANY CAN'T AFFORD TO MAKE ANY FALSE STEPS THAT'S ESPECIALLY TRUE WHEN YOU DON'T KNOW WHAT YOU'RE DOING AS THE BUSKES CAN ATTEST TO WE KNEW SO LITTLE ABOUT THE TOY INDUSTRY CONCEDES THE 42YEAROLD MS BUSKE SITTING IN A BOARD ROOM THAT FEATURES A GIANT VERSION OF THEIR PLAY TABLES IN CLASSIC ENTREPRENEURIAL FASHION THE IDEA FOR THE TABLES WHICH ARE NOW CALLED FUNTABLE PLAYTABLE AND LAPPER DEPENDING ON THE MODEL CAME FROM A PERSONAL EXPERIENCE BACK IN 1989 MS BUSKE WAS WORKING AS DIRECTOR OF A HOUSTON DAYCARE CENTER AND GROWING FRUSTRATED WITH HAVING TO PICK UP LEGO BLOCKS SCATTERED ALL OVER THE FLOOR SHE ASKED HER HUSBAND A FURNITURE MAKER TO BUILD A TABLE TO KEEP THEM ORGANIZED HE RETURNED WITH A WOODEN TABLE COVERED WITH A LEGO BUILDING BOARD IN THE CENTER IT HAD A RECESSED BASKET TO STORE THE BLOCKS WHEN THEY WERE NOT BEING USED THE KIDS LOVED IT AND THE BUSKES FIGURED THEY COULD MAKE SOME EXTRA MONEY SO THEY FOUNDED TABLE TOYS USING 67500 IN CAPITAL FROM FRIENDS AND RELATIVES THEY BUILT THE TABLES ONE BY ONE IN A FRIEND'S GARAGE DEMANDING PAYMENT IN ADVANCE TO PAY FOR THE MATERIALS SINCE ADVERTISING WAS TOO EXPENSIVE TO EVEN CONSIDER MS BUSKE SENT SALES REPS UNINVITED INTO DOCTORS' WAITING ROOMS THEY PLUNKED THE TABLE ON THE FLOOR AND WHEN THE KIDS RUSHED TO PLAY WITH IT THE DOCTOR USUALLY BOUGHT IT PAYING FROM 150 TO 350 DEPENDING ON THE SIZE WE HAD A 75 CLOSURE RATE MS BUSKE SAYS STILL IN THEIR FIRST YEAR THEY MANAGED ONLY 90000 IN SALES AND LOST MONEY BY THE END OF 1991 WHEN THE COMPANY POSTED ITS FIRST MINUSCULE PROFIT THE COUPLE REALIZED THEY NEEDED TO WIDEN THEIR CUSTOMER BASE BY ADDING A LOWERPRICED MASSPRODUCED PLASTIC VERSION OF THE TABLE THEY ALSO NEEDED NATIONAL DISTRIBUTION EASIER SAID THAN DONE THE BUSKES RUSHED PRODUCTION OF A PROTOTYPE MODEL OF THE PLASTIC TABLE IN TIME FOR THE FEB 10 1992 NEW YORK CITY TOY FAIR WHERE HUNDREDS OF TOY MAKERS EXHIBIT IN THE HOPES OF CATCHING THE EYES OF RETAILERS BUT THE COUPLE FOUND DOORS SLAMMED IN THEIR FACE BEFORE THEY EVEN ARRIVED A BUYER FOR ONE MAJOR CATALOG TOLD THE ENTREPRENEURS THAT THEY MUST BE SMOKING DOPE IF THEY EXPECTED TO GET AN APPOINTMENT WITH HIM HE HAD BEEN BOOKED FOR FOUR MONTHS PRIOR TO THEIR PHONE CALL MEANWHILE TOYS R US INC INFORMED THE BUSKES WE DON'T TALK TO MANUFACTURERS AND WE DON'T LOOK AT PROTOTYPES THE BUSKES SOON LEARNED THAT TOY MAKERS MUST USE MANUFACTURERS' REPRESENTATIVES AS INTERMEDIARIES THANKS TO AN INDUSTRY VETERAN THEY MET AT THE TOY FAIR THE BUSKES FOUND A REPRESENTATIVE WHO GOT THEM APPOINTMENTS AND EVENTUALLY SALES AGREEMENTS WITH TOYS R US AND DAYTON HUDSON CORP'S TARGET STORES THE NEXT PROBLEM WAS MONEY THE BUSKES NEEDED ABOUT 750000 TO COVER THE COSTS OF INITIATING MASS PRODUCTION INCLUDING MANUFACTURE MOLDS USED TO PRODUCE THE PLASTIC TABLES A VENTURECAPITAL FIRM PROVIDED 600000 AND THE SMALL COMPANY RAISED THE REST THROUGH A PRIVATE STOCK OFFERING A CRISIS ERUPTED IN THE MIDDLE OF LAST YEAR WHEN THEIR PLASTICS MOLDER BACKED OUT JUST A MONTH BEFORE THE BUSKES WERE SUPPOSED TO SHIP THE PRODUCT THE MANUFACTURER HAD CONCLUDED THAT DEALING WITH CASHPOOR TABLE TOYS WAS TOO MUCH TROUBLE EVENTUALLY MANUFACTURERS IN IOWA AND KANSAS AGREED TO EACH TAKE PORTIONS OF THE JOB THEN IN SEPTEMBER 1992 CAME ANOTHER SETBACK TOYS R US BEGAN TESTING THE SMALLEST VERSION OF THE TABLE A FOLDING VERSION BUT ONLY 1904 OF THE TABLES SOLD IN ABOUT THREE MONTHS THE PROBLEM WAS THE PACKAGE THE UNCLUTTERED BOX COVER WAS DESIGNED FOR SMALLER STORES WHERE SALESPEOPLE HAD THE TIME TO DEMONSTRATE THE PRODUCT TO CUSTOMERS SO THE BUSKES DESIGNED A DETAILED COVER THAT TOUTS THE TABLE'S PORTABLE FEATURE AND SALES TOOK OFF BUT WHILE THE BUSKES ARE ENJOYING THEIR SUCCESS THEY ARE ALSO EXPERIENCING YET ANOTHER BANE OF THE SMALL ENTREPRENEUR COPYCATS AT LEAST FIVE OF THEM THE BUSKES WHO DIDN'T HAVE THE MONEY EARLY ON TO PATENT THE TABLES ARE APPLYING FOR PATENTS ON UNIQUE FEATURES SUCH AS THE BASKET IN THE MIDDLE AND THEY'RE DOING THEIR BEST TO PUT A POSITIVE SPIN ON THE PROBLEM IMITATION IS THE SINCEREST FORM OF FLATTERY MS BUSKE SAYS 9312220068 931222 LEISURE & ARTS SCOTCH FROM THE BARRELHEAD BY PAUL LEVY LEITH SCOTLAND PIP HILLS 52 YEARS OLD AND SLIM WITH A MISCHIEVOUS GLINT IN HIS EYE SPEAKS WITH A CAREFULLY UNRECONSTRUCTED REGIONAL SCOTTISH ACCENT HIS ECCENTRICITY IS EQUALLY CAREFULLY CULTIVATED HE DRIVES A 1937 LAGONDA WITH A GARDNER DIESEL ENGINE WHICH HE IS CAPABLE OF REPAIRING HIMSELF AND LIVES WITH HIS WIFE AND TWO DAUGHTERS IN A BEAUTIFUL GEORGIAN HOUSE IN EDINBURGH THE FRONT DOOR OF WHICH BEARS THE ROMAN NUMERAL X CONFUSING UNTIL YOU SEE THAT IT IS BETWEEN NOS 8 AND 12 HE HAS STUDIED PHILOSOPHY AT EDINBURGH UNIVERSITY WORKED DRIVING TRUCKS AND ON NORTH SEA OIL RIGS AND IS NOW BY TRADE AN ACCOUNTANT BUT MOST OF HIS TIME IS GIVEN OVER TO DRINK SO TO SPEAK AS HE IS THE FOUNDER AND LEADING LIGHT OF THE SCOTCH MALT WHISKY SOCIETY WHICH BOTTLES AND SELLS TO MEMBERS ONLY CASKSTRENGTH MALT WHISKY FROM ITS MAJESTIC HEADQUARTERS HERE IN THE VAULTS A FOURSTORY WINE WAREHOUSE BUILT BETWEEN THE 14TH AND 18TH CENTURIES THE SOCIETY HAS JUST OPENED A BRANCH IN THE US AND IS EXPANDING ITS ACTIVITIES TO TAKE IN FRANCE AND JAPAN IT ALSO HAS ITS EYE ON THE BENELUX COUNTRIES I TOOK TO MALT WHISKY AS I HAD TO DECENT BEER AND FOR THE SAME REASON MR HILLS SAYS IT WAS PRETTY RARE STUFF IN THE 1960S THERE WERE A FEW PUBS IN EDINBURGH WHERE YOU COULD CALL UP A MALT AND SOME VERY FEW WHICH STOCKED HALF A DOZEN BY THE END OF THE '70S MALTS WERE REASONABLY COMMON IN THE SOUTH THIS WAS A CHANGE THAT WAS PURELY DEMANDLED THE DISTILLERS WITH VERY FEW EXCEPTIONS WERE SLOW INDEED TO DISCERN A POTENTIAL MARKET IT WAS IN THE '70S WHEN MR HILLS WITH TWO OLD FRIENDS TASTED MALT WHISKY FROM THE CASK HE WAS STUNNED BY HOW GOOD IT WAS AND GOT TOGETHER A SYNDICATE OF ABOUT 25 FRIENDS TO BUY AND DIVIDE UP A CASK OF GLENFARCAS MY ANCIENT LAGONDA MOTOR CAR MR HILLS RECALLS CAME TO BE QUITE A COMMON SIGHT ON HIGHLAND ROADS TOWING A TRAILER LOADED WITH ONE OR TWO CASKS OF MALT WHISKY FROM THESE FIRST CASKS THERE SPOUTED THE 14000MEMBER SOCIETY HE HEADS UP TODAY THE 139 INITIAL FEE GETS YOU A FULL BOTTLE IN THE SOCIETY'S DISTINCTIVE AND CLASSY DARKGREEN PACKAGING THE SUBSEQUENT ANNUAL SUBSCRIPTION IS 75 US RESIDENTS CAN CALL 18009901991 YOU HAD FORMERLY TO GO TO SCOTLAND TO TAKE POSSESSION THIS NO LONGER SO UNLESS YOU LIVE IN A STATE THAT PROHIBITS SENDING LIQUOR THROUGH THE MAIL POTENTIAL MEMBERS ARE WELCOME TO VISIT THE SOCIETY'S ELEGANT CLUBBY HEADQUARTERS IN LEITH THE ANCIENT PORT TO THE NORTH OF EDINBURGH CITY CENTER AND TASTE THE MALT WHISKY THERE HAVE INDEED ALWAYS BEEN SOME MEMBERS SAYS MR HILLS WHO THOUGH RESIDENT IN STATES WHERE THEY WERE UNABLE OFFICIALLY TO GET SOCIETY WHISKIES NEVERTHELESS MAINTAINED THEIR MEMBERSHIP AND GOT THEIR WHISKY BY UNOFFICIAL AND OFTEN UNORTHODOX MEANS YOU HAVE TO TASTE THE SOCIETY'S MALT WHISKIES YOURSELF TO APPRECIATE WHY SCOTCH WHISKY LOVERS WOULD GO TO SUCH LENGTHS TO PROCURE A BOTTLE OF COURSE IT IS VASTLY DIFFERENT FROM THE HIGHPROFITMARGIN BLENDED SCOTCH WHISKIES MOST PEOPLE DRINK WHICH ARE A BLEND OF SINGLE MALT WHISKIES AND THE GRAIN SPIRITS THAT PUT MALTWHISKY CONNOISSEURS OFF THEIR DRAM IT IS ALSO DIFFERENT FROM THE MORE SPECIALIZED BRANDED SINGLE MALT WHISKIES SOLD UNDER PROPRIETARY LABELS FOR SINGLE IN THIS CONTEXT ONLY MEANS THAT THEY ARE THE PRODUCT OF A SINGLE DISTILLERY THE SOCIETY'S BOTTLINGS ARE NOT ONLY THE PRODUCT OF A SINGLE DISTILLERY BUT OF A SINGLE SELECTED CASK FROM THAT DISTILLERY WHICH MEANS ALSO THAT THE WHISKY'S AGE AT BOTTLING IS KNOWN THIS MAKES IT ALMOST AS INDIVIDUAL AS A BOTTLE OF VINTAGE WINE TO AVOID INVIDIOUS COMPARISONS THAT MIGHT UPSET THE DISTILLERS FROM WHOM THE SOCIETY BUYS THE CASKS THE BOTTLES DO NOT BEAR THE DISTILLER'S NAME ONLY A CODED NUMBER UNTIL THE 1960S MR HILLS EXPLAINS SCOTCH MALT WHISKY WAS VIRTUALLY UNKNOWN OUTSIDE SCOTLAND AND APPRECIATED BY ONLY A FEW OF THE SCOTS THEMSELVES WHEN MALTS AT LAST BECAME AVAILABLE THE DISTILLERS UNDERSTANDABLY SOUGHT TO BOTTLE A LIQUOR THAT WOULD NOT VARY IN QUALITY FROM ONE BOTTLE TO ANOTHER TO DO THIS THEY HAVE TO BLEND THE CONTENTS OF MANY CASKS FOR THE FLAVOR OF THE WHISKY IS DEEPLY AFFECTED BY THE TYPE AND QUALITY OF THE CASK IN WHICH IT HAS BEEN MATURED AND THE CASKS VARIED GREATLY SCOTCH WHISKY IS ALWAYS MATURED IN USED NEVER NEW OAK CASKS MOST OF THEM FORMERLY HELD BOURBON AND IMPART SPICY VANILLA FLAVORS TO SCOTCH MALTS USED SHERRY CASKS ARE MUCH RARER AND MORE EXPENSIVE AND GIVE A TOTALLY DIFFERENT FLAVOR TO MALT WHISKY ONE THAT MANY WHISKY LOVERS PRIZE BUT THE EXPENSE IS SO GREAT THAT THE MACALLAN IS THE ONLY PROPRIETARY MALT WHISKY THAT CLAIMS THAT IT IS MATURED 100 IN REFILLED SHERRY CASKS TWO OTHER FACTORS MAKE THE SOCIETY'S BOTTLINGS DIFFERENT FROM THOSE OF THE PROPRIETARY DISTILLERS CHILLFILTERING AND THE STRENGTH OF ALCOHOL BY VOLUME AT WHICH THE LIQUOR IS BOTTLED HAVING BLENDED THE CONTENTS OF THE CASK MR HILLS CONTINUES THEY THEN REDUCE THE STRENGTH OF THE LIQUOR TO 40 BY VOLUME HAVING DONE THAT THEY CHILL THE LIQUOR AND PASS IT THROUGH VERY FINE FILTERS CASKSTRENGTH WHISKY AS BOTTLED BY THE SCOTCH MALT WHISKY SOCIETY VARIES BUT IS USUALLY AROUND 60 ALCOHOL BY VOLUME 120 US PROOF BECAUSE IT IS NOT FILTERED IT RETAINS ALL THE FLAVOR COMPONENTS OF THE WHISKY BUT IT SOMETIMES GOES A LITTLE CLOUDY WHEN WATER IS ADDED MR HILLS IS A STRONG ADVOCATE OF WATERED WHISKY HE ADDS THESE WORDS OF WARNING IN HIS LETTER TO EVERY NEW AMERICAN MEMBER OF THE SOCIETY PLEASE TREAT THE WHISKY PROPERLY FOR YOUR SURVIVAL AS WELL AS FOR YOUR ENJOYMENT THESE WHISKIES ARE STRONG AS WELL AS SUBTLE AND SHOULD IDEALLY BE TAKEN WITH THE ADDITION OF A LITTLE WATER WHICH IS ESSENTIAL TO BRING OUT THE BOUQUET IT IS NOT TO BE TAKEN WITH ICE OR WITH MIXERS BUT PLEASE BE CAREFUL SOCIETY WHISKIES ARE VERY POTENT INDEED WITH A LITTLE WATER THEY DON'T SEEM TOO STRONG AND YOU ARE LIKELY TO DRINK MUCH MORE THAN IS GOOD FOR YOU REMEMBER A FEW GLASSES OF THIS STUFF WILL MAKE YOU UNFIT TO DRIVE AND A BOTTLE WILL KILL YOU 9312220067 931222 INTERNATIONAL BRIEF NISSAN MOTOR CO OUTPUT CUTS ARE PLANNED RETIREMENT PROGRAM ISN'T NISSAN MOTOR CO MAY BE FORCED TO CONTINUE FURLOUGHING SOME EMPLOYEES TO CUT PRODUCTION UNTIL NEXT SUMMER BUT HAS NO PLANS TO ASK EMPLOYEES TO RETIRE VOLUNTARILY NISSAN MOTOR PRESIDENT YOSHIFUMI TSUJI SAID TUESDAY SPEAKING AT A NEWS CONFERENCE MR TSUJI ALSO ANNOUNCED THAT NISSAN PLANS TO PRODUCE 175 MILLION VEHICLES NEXT YEAR A 34 DROP FROM THE CURRENT YEAR NISSAN EXPECTS TO INCREASE DOMESTIC SALES BY 81 TO 12 MILLION VEHICLES BUT TO CUT EXPORTS BY 20 TO 550000 MR TSUJI SAID MR TSUJI SAID THE NO 2 JAPANESE AUTO MAKER EXPECTS THE WORST BUSINESS CLIMATE IN YEARS TO CONTINUE INTO THE FIRST HALF OF NEXT FISCAL YEAR MAKING IT UNAVOIDABLE TO HAVE SOME WORKERS STAY OFF THE JOB TEMPORARILY MR TSUJI SAID THE NUMBER OF WORKERS TO BE AFFECTED WILL BE ROUGHLY THE SAME AS IN THE SECOND HALF OF THIS FISCAL YEAR DURING WHICH NISSAN SO FAR HAS HAD 15000 EMPLOYEES TAKE TWO DAYS OFF IN ADDITION TO THEIR REGULAR HOLIDAYS TO CUT PRODUCTION 9312220066 931222 WHO'S NEWS VALLEY NATIONAL BANCORP VALLEY NATIONAL BANCORP WAYNE NJ PAMELA BRONANDER WAS NAMED A DIRECTOR OF THIS BANK HOLDING COMPANY INCREASING BOARD MEMBERSHIP TO 17 MS BRONANDER 37 YEARS OLD IS EXECUTIVE VICE PRESIDENT AND A PRINCIPAL OF SCANDIA PACKAGING MACHINERY CO A CLIFTON NJ PRODUCER OF PACKAGING MACHINERY 9312220065 931222 BUSINESS BRIEF PACIFIC TELESIS GROUP PACIFIC BELL UNIT IS FREEZING SALARIES OF 13700 MANAGERS PACIFIC TELESIS GROUP SAN FRANCISCO SAID ITS PACIFIC BELL TELEPHONE UNIT IS FREEZING THE SALARIES OF 13700 MANAGERS ABOUT A QUARTER OF THE TOTAL WORK FORCE AS IT GEARS UP FOR HEIGHTENED COMPETITION IN THE CALIFORNIA REGION THERE ARE NO IMMEDIATE PLANS FOR JOB CUTS A SPOKESWOMAN SAID SHE NOTED HOWEVER THAT PACIFIC BELL WILL ANNOUNCE IN THE FIRST QUARTER A PLAN TO BOOST OPERATING EFFICIENCY AND PERHAPS TRIM CERTAIN JOBS THE CURRENT SALARY FREEZE AFFECTS TOPLEVEL MANAGERS AS WELL PACIFIC BELL'S ATTEMPTS TO GET LEANER REFLECT NEW COMPETITIVE PRESSURES AS THE STATE PLANS TO OPEN UP ITS LARGE AND LUCRATIVE MARKET FOR INTRASTATE TOLL CALLS TO OUTSIDE COMPANIES SOMETIME NEXT YEAR PACIFIC BELL IS ALSO READYING ITSELF TO CONSTRUCT AN AMBITIOUS 16 BILLION PHONE NETWORK IN CALIFORNIA TO CARRY VOICE DATA AND VIDEO PROGRAMMING IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PACIFIC TELESIS SHARES CLOSED AT 55125 DOWN 50 CENTS 9312220064 931222 LEISURE & ARTS INTEL SPONSORS MAVERICK CHESS GROUP BY JEFFREY A TANNENBAUM NEW YORK IF YOU THINK FAY VINCENT HAD IT TOUGH RUNNING BASEBALL MEET ROBERT E RICE THE FIRST COMMISSIONER FOR PROFESSIONAL CHESS AT LEAST BASEBALL PEOPLE ALL AGREED THAT WHAT THEIR FORMER COMMISSIONER CALLED THE WORLD SERIES WAS IN FACT THE WORLD SERIES BUT WHICH CHESS CONTEST IS THE TRUE WORLD CHAMPIONSHIP PLAYERS ARE DIVIDED ON EVEN THIS FUNDAMENTAL POINT NOW IT IS BOB RICE'S JOB TO WIN SUPPORT FOR A NEW CHAMPIONSHIP CYCLE WHILE ALSO SEEKING INCREASES IN MEDIA COVERAGE AND CORPORATE SPONSORSHIP ACTUALLY THE JOB IS ONLY AN AMBITIOUS SIDELINE FOR THE WALL STREET LAWYER A PARTNER AT BIG MILBANK TWEED HADLEY & MCCLOY BUT THE GAME HAS BEEN A PASSION FOR HIM SINCE AGE FIVE THOUGH HE HAS YET TO REACH MASTER STRENGTH HIMSELF HE VOWS TO IMPROVE PUBLIC EXPOSURE PRIZE FUNDS AND PLAYING CONDITIONS FOR DOZENS OF THE VERY BEST COMPETITORS WE'RE TRYING TO DO FOR PROFESSIONAL CHESS PLAYERS WHAT HAS BEEN DONE FOR PRO GOLFERS AND TENNIS PLAYERS OVER THE LAST TWO DECADES MR RICE WROTE TO TOP PLAYERS IN JULY MANY KNOW HIM AS THE AMIABLE HOST OF CHESS EVENTS SPONSORED BY MILBANK MR RICE HAD STARTED HIS ONAGAIN OFFAGAIN WALL STREET CHESS CLUB IN 1990 TO GIVE PLAYERS A NICER PLACE TO MEET THAN MANY OF THEIR USUAL SITES OF COURSE THE 39YEAROLD MR RICE IS STILL AN UNKNOWN QUANTITY TO MOST PEOPLE SOME TOP PLAYERS DON'T EVEN BELONG TO HIS PROFESSIONAL CHESS ASSOCIATION MUCH LESS THINK IT WILL ACHIEVE ITS GOALS BUT MR RICE SAYS TANGIBLE ACTIONS SHOULD RAPIDLY OVERCOME THEIR SKEPTICISM ABOUT THE NONPROFIT ORGANIZATION FOR EXAMPLE THE PCA SIGNED A CONTRACT THIS MONTH WITH INTEL CORP UNDER WHICH THE COMPUTERCHIP MAKER BECOMES THE CHIEF SPONSOR OF THE PCA CALENDAR OF EVENTS BOTH SIDES DECLINE TO DISCLOSE FULL DETAILS BUT MR RICE SAYS HE STRUCK A MULTIYEAR MULTIMILLIONDOLLAR DEAL AND AN INTEL SPOKESWOMAN IN SANTA CLARA CALIF CONFIRMS THAT THE CONTRACT SHOULD BRING RESPECTABILITY AND FINANCIAL ORDER TO AN ORGANIZATION BORN OUT OF CHAOS LAST FEBRUARY THE INTERNATIONAL CHESS FEDERATION A GOVERNING BODY KNOWN BY ITS FRENCH ACRONYM FIDE WAS PREPARING FOR A TITLE CONTEST BETWEEN GARRY KASPAROV OF RUSSIA AND NIGEL SHORT OF GREAT BRITAIN BUT THE TWO PLAYERS SPLIT FROM FIDE FOR REASONS OF POLITICS AND MONEY THEN THEY ASKED MR RICE WHOM MR KASPAROV HAD MET AT EVENTS AT MILBANK TO FORM THE RIVAL PCA AND OVERSEE A BREAKAWAY MATCH FIDE RETALIATED BY ARRANGING A TITLE MATCH BETWEEN ANATOLY KARPOV OF RUSSIA AND JAN TIMMAN OF THE NETHERLANDS SO NOW THERE ARE TWO CHAMPIONS MR KASPAROV AND MR KARPOV OR THREE IF YOU COUNT BOBBY FISCHER THE MADCAP AMERICAN GENIUS DESPITE US ECONOMIC SANCTIONS AGAINST YUGOSLAVIA THE POLITICALLY INCORRECT MR FISCHER PLAYED A MATCH THERE LAST YEAR WITH BORIS SPASSKY OF FRANCE AND NOW FACES FORMAL FEDERAL CHARGES THAT HE VIOLATED THE SANCTIONS IN WINNING MR FISCHER CLAIMED TO RETAIN THE WORLD TITLE THAT HE HAD GAINED UNDER FIDE AUSPICES BY DEFEATING MR SPASSKY IN REYKJAVIK ICELAND TWO DECADES EARLIER FEW PLAYERS DISPUTE THAT THE 30YEAROLD MR KASPAROV IS CURRENTLY THE BEST PLAYER MANY INSIST THAT HE IS THE BEST EVER BUT NOBODY NOT EVEN MR KASPAROV THINKS HE SHOULD BE ABLE TO CHOOSE HIS OWN TITLE OPPONENTS MR SHORT WAS A CREDIBLE CHALLENGER BECAUSE HE HAD FOUGHT HIS WAY THROUGH FIDE'S THREEYEAR CYCLE OF EVENTS LEADING TO THE TITLE MATCH FIDE HAD BEEN IMPOSING ORDER ON SUCH CHAMPIONSHIPS SINCE 1946 BEFORE THAT SOME CHAMPIONS RETAINED THEIR TITLES ONLY BY REFUSING TO PLAY THE STRONGEST CONTENDERS PART OF MR RICE'S CHALLENGE IS TO ESTABLISH CREDIBILITY FOR THE TWOYEAR CYCLE OF CONTESTS THAT THE PCA IS HOLDING TO CHOOSE MR KASPAROV'S NEXT TITLE CHALLENGER THE TOP SEVEN FINISHERS FROM A 52PLAYER TOURNAMENT THAT BEGAN THIS MONTH IN GRONINGEN THE NETHERLANDS WILL PROCEED TO THE NEXT QUALIFICATION EVENTS ALONG WITH NIGEL SHORT THE DEFEATED 1993 CHALLENGER IN INVITING PLAYERS MR RICE ANNOUNCED A 230000 PRIZE FUND THE PCA ALSO AIMS TO RAISE THE VISIBILITY OF THE GAME BY STAGING RAPIDPLAY EVENTS INTENDED FOR TELEVISION WORLDWIDE INSTEAD OF TAKING MANY HOURS GAMES WOULD BE SQUEEZED INTO PERIODS OF APPROXIMATELY 22 1/2 MINUTES ALLOWING ROOM FOR COMMERCIALS IN A 30MINUTE SHOW MR RICE CONCEDES THAT SOME PLAYERS MIGHT CRINGE AT THE ODD TIME LIMITS WE'RE DESIGNING THESE EVENTS FOR TELEVISION MR RICE SAYS THE QUESTION ISN'T WHAT THE PURISTS THINK WE WANT WHAT SELLS WE'RE GOING TO CHANGE THE WAY PEOPLE THINK ABOUT CHESS ALSO TO STIMULATE THE MARKET THE PCA PLEDGES TO SUPPORT SCHOOL PROGRAMS AND IT WILL SEEK TO ARRANGE HIGHPROFILE CLASHES BETWEEN MR KASPAROV AND COMPUTERS SUCH AS INTERNATIONAL BUSINESS MACHINES CORP'S DEEP BLUE COMPUTERS MAY SOON DEFEAT EVEN THE STRONGEST HUMAN PLAYERS MR RICE SAYS BUT THE INTEREST OF COMPUTER MAKERS IN THE GAME MAY ALSO PROVIDE UNPRECEDENTED OPPORTUNITIES TO RAISE MONEY FOR THE HUMANS SPEED GAMES ON TELEVISION WILL HIGHLIGHT QUICK THINKING MAKING SUCH SHOWS A PERFECT VEHICLE FOR PITCHING COMPUTERS MR RICE ARGUES NOW THE PCA PLANS A SERIES OF RAPIDPLAY TOURNAMENTS BEGINNING NEXT APRIL IN MOSCOW THEY WILL BE TELECAST WORLDWIDE FROM INSIDE THE KREMLIN MR RICE SAYS AND IF HE PULLS IT OFF IT WILL PROBABLY NOT BE PCA'S LAST GAMBIT MR TANNENBAUM IS A SENIOR SPECIAL WRITER IN THE JOURNAL'S ENTERPRISE GROUP BASED IN NEW YORK 9312220063 931222 BUSINESS BRIEF AMOCO CORP COMPANY TO SPEND 12 LESS ON CAPITAL OUTLAYS IN 1994 AMOCO CORP CHICAGO SAID IT PLANS TO SPEND 3 BILLION FOR CAPITAL INVESTMENT AND EXPLORATION NEXT YEAR AN AMOUNT THAT IS 12 LOWER THAN ITS ESTIMATED OUTLAY FOR THIS YEAR THE REDUCTION REFLECTS THE ABSENCE OF ANY PLANNED MAJOR ACQUISITIONS AND THE CURRENT DEPRESSED LEVEL OF CRUDE OIL PRICES IN A STATEMENT AMOCO CHAIRMAN H LAURANCE FULLER SAID GIVEN THE UNCERTAIN DIRECTION OF CRUDE OIL PRICES WE'LL REMAIN FLEXIBLE ABOUT OUR SPENDING ABOUT 19 BILLION OF THE 1994 SPENDING WILL GO FOR EXPLORATION AND PRODUCTION OF CRUDE OIL AND NATURAL GAS WITH ABOUT TWOTHIRDS OF THAT TARGETED FOR OUTSIDE THE US CAPITAL OUTLAYS OF ABOUT 1 BILLION WILL BE SPLIT ROUGHLY EQUALLY BETWEEN AMOCO'S CHEMICAL OPERATIONS AND ITS REFINING MARKETING AND TRANSPORTATION SEGMENTS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE AMOCO SHARES CLOSED AT 53375 UP 125 CENTS 9312220062 931222 PEPPERAND SALT TO TEST MARKET AND PRIORITIZE NOW THIS FIRM HAS GOT ME FUMIN' AND I NEVER FOUND A HUMAN CHOICES SUCH AS THESE BE BETTER THAN THE PRE'S 9312220061 931222 BUSINESS BRIEF LAWSON MARDON GROUP LTD ALUSUISSELONZA TO LAUNCH 4131 MILLION OFFER TODAY ALUSUISSELONZA HOLDING LTD A SWISS MANUFACTURING CONGLOMERATE SAID IT WILL LAUNCH TODAY A PREVIOUSLY PROPOSED BID FOR ALL THE SHARES OF LAWSON MARDON GROUP LTD A TORONTO PACKAGING COMPANY THE BID AT 14 CANADIAN DOLLARS US1042 A SHARE VALUES ALL OF LAWSON MARDON AT ABOUT C555 MILLION US4131 MILLION THE COMPANY'S MAJOR SHAREHOLDER CRAGNOTTI & PARTNERS CAPITAL INVESTMENT SA OF LUXEMBOURG HAS AGREED TO TENDER ITS SHARES TO THE OFFER ALUSUISSE SAID CRAGNOTTI & PARTNERS OWNS 327 OF LAWSON MARDON'S EQUITY BUT CONTROLS 528 OF THE VOTING RIGHTS AS A RESULT OF ITS HOLDING OF MULTIPLE VOTING SHARES ALUSUISSE SAID THE ACQUISITION OF LAWSON MARDON FITS THE SWISS CONCERN'S STRATEGY TO EXPAND ITS OPERATIONS IN THE AREAS OF PACKAGING AND CHEMICALS IT SAID 80 OF LAWSON MARDON'S C128 BILLION OF REVENUE LAST YEAR WAS GENERATED IN EUROPE 9312220060 931222 INTERNATIONAL BRIEF VOLKSWAGEN AG AUDI UNIT EXPECTS TO POST 1993 LOSS ON 25 SALES DROP AUDI AG THE LUXURYCAR ARM OF VOLKSWAGEN AG SAID IT EXPECTS TO POST A PRETAX LOSS OF 200 MILLION MARKS 1169 MILLION FOR THE YEAR ON A 25 SLUMP IN SALES FOR 1992 AUDI POSTED PRETAX PROFIT OF 5081 MILLION MARKS AUDI SAID ITS 1992 SALES ARE LIKELY TO AMOUNT TO 127 BILLION MARKS WELL BELOW THE 1992 LEVEL OF 167 BILLION MARKS VW PREVIOUSLY SAID IT EXPECTS THE VOLKSWAGEN GROUP TO POST A LOSS OF 23 BILLION MARKS FOR 1993 THE VOLKSWAGEN GROUP INCLUDES THE VW AUDI SKODA AND SEAT MARQUES AUDI'S PROJECTION OF A 200 MILLION MARK LOSS INDICATES HOWEVER THAT THE AUTO MAKER'S PERFORMANCE HAS AT LEAST STABILIZED IN THE SECOND HALF OF 1993 FOR THE FIRST HALF ALONE THE COMPANY HAD A PRETAX LOSS OF 198 MILLION MARKS 9312220059 931222 MARKETING BRIEF BET HOLDINGS INC CABLE CONCERN BLOCKBUSTER TO PRODUCE FAMILY FILMS CABLETELEVISION BROADCASTER BET SAID IT WILL JOIN HOME VIDEO STORE GIANT BLOCKBUSTER ENTERTAINMENT CORP TO PRODUCE FAMILYORIENTED FILMS AIMED AT AFRICANAMERICAN AUDIENCES A BLOCKBUSTER SPOKESMAN SAID THE NEW VENTURE BET PICTURES INITIALLY EXPECTS TO FINANCE THREE OR FOUR FILMS IN THE 15 MILLION TO 3 MILLION RANGE THROUGH INDEPENDENT PRODUCTION COMPANIES BET OWNED BY BET HOLDINGS INC IN WASHINGTON OPERATES A CABLE TV NETWORK AIMED AT AN AFRICANAMERICAN AUDIENCE BLOCKBUSTER BASED IN FORT LAUDERDALE FLA HAS INTERESTS IN HOME VIDEO MUSIC RETAILING AND FILMED ENTERTAINMENT IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BET SHARES ROSE 375 CENTS TO 18375 WHILE BLOCKBUSTER SLIPPED 50 CENTS TO CLOSE AT 30375 9312220058 931222 HEARD ON THE STREET INVESTORS' HONEYMOON WITH TIFFANY FADES AS SOME ANALYSTS GIVE STOCK A COLD SHOULDER BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL YOU'VE HEARD OF THE JANUARY EFFECT NOW HERE'S A NEW ONE CALL IT THE DONALD EFFECT TIFFANY SHARES HAVE JUMPED 20 IN RECENT WEEKS FOR NO APPARENT REASON COULD IT BE THAT THE STOCK IS BENEFITING FROM ALL THE FREE PUBLICITY GENERATED BY DONALD TRUMP AND MARLA MAPLES NOT ONLY DID THE TABLOIDS DUTIFULLY REPORT THAT THE JUSTMARRIED COUPLE HAD REGISTERED AT TIFFANY BUT THE COUPLE EVEN NAMED THEIR CHILD AFTER THE UPSCALE JEWELRY CHAIN WHATEVER INSPIRED INVESTORS' LOVE AFFAIR WITH THE STOCK THE HONEYMOON ENDED YESTERDAY WHEN TWO SECURITIES ANALYSTS DOWNGRADED THE COMPANY THE THINLY TRADED STOCK SANK 1 5/8 TO 36 1/4 ON TWICENORMAL VOLUME OF 159000 SHARES IT MAY SEEM A FUNNY MOMENT TO TURN BEARISH AFTER ALL TIFFANY'S CHRISTMAS SALES LOOK GOOD COMPARED WITH MUCH OF THE RETAIL BUNCH ONE ANALYST WHO DOWNGRADED THE STOCK YESTERDAY ANN RYAN OF PRUDENTIAL SECURITIES SAYS SHE THINKS SALES DURING THE CHRISTMAS SALES SEASON AT STORES OPEN AT LEAST A YEAR WILL COME IN AT 10 OVER LAST YEAR AT A TIME WHEN MANY OTHER RETAILERS CAN'T HOPE FOR BETTER THAN LOW SINGLEDIGIT GAINS BUT ANALYSTS AND INVESTORS POINT OUT THAT THE STOCK HAS HAD A GOOD RUNUP AND THEY FIGURE ALL THE APPROACHING GOOD NEWS ABOUT CHRISTMAS SALES IS ALREADY REFLECTED IN THE STOCK WHICH SELLS AT 18 TIMES 1994 EARNINGS ESTIMATES WITH THE SHARES WITHIN HAILING DISTANCE OF 38 SAYS DONALD TROTT ANALYST AT DEAN WITTER WE SEE EXTREMELY LIMITED REMAINING UPSIDE POTENTIAL AND HENCE VIEW TIFFANY AS A SWAP' CANDIDATE SWAP IS A WALL STREET EUPHEMISM FOR SELL PART OF THE REASON TIFFANY'S STOCK HAS SAGGED UNTIL RECENTLY WAS CONCERN AMONG INVESTORS ABOUT THE COMPANY'S RELATIONSHIP WITH JAPANESE DEPARTMENT STORE CHAIN MITSUKOSHI WHICH BOUGHT TIFFANY MERCHANDISE ON A WHOLESALE BASIS AND SOLD IT IN TIFFANY BOUTIQUES IN ITS STORES INVESTORS WERE WARY BECAUSE IN RECENT YEARS MITSUKOSHI SALES HAD SLOWED AND ITS INVENTORY HAD SWOLLEN TO LEVELS TWICE THE NORM FOR RETAILERS BY SOME ACCOUNTS THIS SUMMER HOWEVER TIFFANY REACHED A NEW RELATIONSHIP WITH MITSUKOSI SENDING THE US COMPANY'S STOCK ON AN UPHILL COURSE THE NEW AGREEMENT CALLED FOR TIFFANY TO BEGIN SELLING ITS OWN MERCHANDISE ON A RETAIL RATHER THAN WHOLESALE BASIS IN THE JAPANESE STORES AS PART OF THE NEW AGREEMENT TIFFANY BOUGHT BACK THE 115 MILLION IN MERCHANDISE IT HAD SOLD TO MITSUKOSHI AND AGREED TO LEASE THE BOUTIQUES FROM MITSUKOSHI GIVING THE JAPANESE CONCERN 27 OF THE SALES INVESTORS LIKED THE ARRANGEMENT BECAUSE IT MEANT HIGHER GROSS PROFIT MARGINS INDEED AFTER A ONETIME WRITEOFF OF 327 MILLION FROM MERCHANDISE RETURNS THE RESTRUCTURING HAS MEANT GOOD THINGS FOR TIFFANY'S EARNINGS AND ITS STOCK PRICE UNDER THE NEW ARRANGEMENT TIFFANY'S WILL DOUBLE ITS PROFIT MARGINS ON MERCHANDISE SOLD THROUGH THE JAPANESE DEPARTMENT STORES IN THE SECOND HALF OF 1993 DEAN WITTER'S MR TROTT ESTIMATES TIFFANY WILL SELL MERCHANDISE THAT WOULD HAVE BROUGHT 375 MILLION IN REVENUE ON A WHOLESALE BASIS ON A RETAIL BASIS ITS SALES WILL JUMP TO 75 MILLION BUT THE RESTRUCTURING HASN'T DONE MUCH TO KEEP INVESTORS FROM WORRYING ABOUT WHETHER THE NEW ARRANGEMENT WILL CONTINUE TO DELIVER EARNINGS GROWTH FROM THE JAPANESE OPERATIONS THE PROBLEM HERE ISN'T TIFFANY IT'S JAPAN ANALYSTS ARE WORRIED ABOUT PRICE CUTS IN JAPAN WHERE THEY SAY TIFFANY'S PRICES ARE ABOUT 60 ABOVE US LEVELS WITH THE JAPANESE ECONOMY IN THE DOLDRUMS HIGHPRICED JEWELRY MAY BE LESS OF A PRIORITY FOR THE COUNTRY'S FORMERLY FREESPENDING CONSUMERS OF COURSE SOME INVESTORS SAY THEY ARE UNCONCERNED ABOUT THE RISKS THAT THE COMPANY'S JAPANESE BUSINESS PRESENTS FOR THE STOCK OUR POSITION IS THAT THE STOCK WILL DO WELL IN A STRENGTHENING ECONOMY SAYS JANET BUNCH AN ANALYST AT ATLANTABASED MONTAG & CALDWELL SOME INVESTORS EVEN ATTRIBUTE TIFFANY'S RUNUP TO A MOVE BY MARKET PROS BACK INTO STOCKS OFFERING HIGHEND MERCHANDISE AND WITH CELEBRITIES BROWSING FOR THE PERFECT GIFT FOR DONALD AND MARLA TIFFANY CERTAINLY SEEMED TO FIT THAT BILL AT LEAST UNTIL YESTERDAY NINE MONTHS ENDED OCT 31 1993 THIRD QUARTER OCT 31 1993 9312220057 931222 BUSINESS BRIEF PARAGON MORTGAGE CORP TOP TWO EXECUTIVES RESIGN ON MISAPPROPRIATION REPORT PARAGON MORTGAGE CORP SAID ITS TOP TWO EXECUTIVES RESIGNED FOLLOWING A BOARD INVESTIGATION THAT SAID THE TWO BROTHERS DIVERTED COMPANY FUNDS FOR PERSONAL USE THE COMPANY SAID IT WILL LIKELY RESTATE RESULTS FOR THE YEAR ENDED SEPT 30 1992 WHICH WOULD CAUSE A SUBSTANTIAL REDUCTION IN THAT YEAR'S EARNINGS W GENE ROSS CHAIRMAN AND CHIEF EXECUTIVE AND LYNN K ROSS PRESIDENT AND CHIEF OPERATING OFFICER RESIGNED FOLLOWING AN INVESTIGATION BY AN INDEPENDENT COUNSEL RETAINED BY THE BOARD ACCORDING TO THE COMPANY THE INVESTIGATION FOUND THAT FROM 1991 TO 1993 THE TWO DIVERTED AN UNDISCLOSED AMOUNT TO REPAY A PERSONAL LOAN TAKEN OUT TO PROVIDE INITIAL CAPITAL FOR PARAGON NEITHER COULD BE REACHED FOR COMMENT PARAGON SMYRNA GA WHICH ASSISTS REALESTATE COMPANIES AND HOME BUYERS IN OBTAINING RESIDENTIAL LOANS SAID THE TWO HAVE AGREED TO REPAY THE DIVERTED FUNDS 9312220056 931222 TEXAS JOURNAL TRACKING TEXAS THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR ROSE TO 11114 IN THE LATEST WEEK FROM A REVISED 11104 A WEEK EARLIER MOSTLY DUE TO A RISE IN THE US SHORT LEADING INDEX INITIAL UNEMPLOYMENT CLAIMS ROSE IN THE LATEST WEEK BUT WERE DOWN SHARPLY FROM THE SAME PERIOD A YEAR EARLIER THE ANNUAL GROWTH RATE OF THE TEXAS INDEX FELL TO 306 FROM 309 A WEEK EARLIER 9312220055 931222 BUSINESS BRIEF CONTINENTAL CORP FIRM SELLS AFCO TO MELLON PROCEEDS TO BE 220 MILLION CONTINENTAL CORP NEW YORK SAID IT COMPLETED THE SALE OF ITS PREMIUMFINANCE UNIT AFCO CREDIT CORP TO MELLON BANK CORP AND EXPECTS TO REALIZE A FOURTHQUARTER PRETAX GAIN OF ABOUT 45 MILLION FROM THE SALE THE UNIT LENDS FUNDS TO PAY FOR INSURANCE PREMIUMS CONTINENTAL IS A PROPERTY/CASUALTY INSURANCE COMPANY CONTINENTAL'S PROCEEDS FROM THE SALE WILL TOTAL 220 MILLION INCLUDING A 120 MILLION DIVIDEND FROM AFCO TO CONTINENTAL JUST PRIOR TO THE SALE AND 100 MILLION IN CASH FROM MELLON WHICH IS BASED IN PITTSBURGH CONTINENTAL PLANS TO INVEST THE BULK OF THE PROCEEDS IN ITS CONTINUING INSURANCE OPERATIONS THE SALE ALSO INCLUDES A CONTINGENT PAYMENT BASED ON AFCO'S PREMIUMFINANCE GROWTH WITH A POTENTIAL VALUE OF AS MUCH AS 78 MILLION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CONTINENTAL SHARES CLOSED AT 27625 DOWN 875 CENTS 9312220054 931222 BUSINESS BRIEF ALZA CORP WRITEOFFS SEEN RESULTING IN LOSS FOR FOURTH QUARTER ALZA CORP SAID IT WOULD TAKE 28 MILLION IN WRITEOFFS ASSOCIATED WITH MANUFACTURING OPERATIONS RESULTING IN AN UNSPECIFIED LOSS FOR THE FOURTH QUARTER THE PALO ALTO CALIF COMPANY HAS BEEN SADDLED WITH EXCESS PRODUCTION CAPACITY AT A PLANT IN VACAVILLE CALIF STEMMING FROM A DECLINE IN SALES OF NICODERM A PATCH USED BY PEOPLE TRYING TO QUIT SMOKING ALZA SAID IT WILL WRITE OFF EXCESS CAPACITY AND EQUIPMENT THERE AS WELL AS COSTS RELATED TO BOOSTING PRODUCTION OF OTHER PRODUCTS ANALYSTS HAD EXPECTED THE PHARMACEUTICAL RESEARCH CONCERN TO EARN ABOUT 20 CENTS A SHARE IN THE FOURTH QUARTER FOR THE YEAREARLIER PERIOD ALZA REPORTED PROFIT OF 198 MILLION OR 25 CENTS A SHARE ON SALES OF 578 MILLION IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE ALZA SHARES WERE QUOTED AT 2675 DOWN 75 CENTS 9312220053 931222 BUSINESS BRIEF CINCINNATI BELL INC STOCK FALLS ON EXPECTATION OF LOWER 1STPERIOD PROFIT CINCINNATI BELL INC SHARES SLUMPED 44 ON THE COMPANY'S ANNOUNCEMENT THAT FIRSTQUARTER EARNINGS WILL BE LOWER THAN THE YEAREARLIER LEVEL THE CINCINNATI TELECOMMUNICATIONS COMPANY'S SHARES FELL 875 CENTS TO 19 YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE COMPANY ATTRIBUTED THE EXPECTED EARNINGS DECLINE TO DELAYS IN REGULATORY DECISIONS AND COSTS FROM CHANGES IN ACCOUNTING STANDARDS IN ADDITION ISSUANCE OF LONGTERM DEBT WILL BOOST INTEREST COSTS HOWEVER THE COMPANY SAID EARNINGS FOR THE FOURTH QUARTER ARE ON TRACK WITH RESULTS FROM EARLIER IN THE YEAR IN THE 1993 FIRST QUARTER NET INCOME WAS 198 MILLION OR 32 CENTS A SHARE INCLUDING A GAIN OF 10 CENTS A SHARE FROM SALE OF THE RETAIL TELEPHONEEQUIPMENT BUSINESS A SPOKESMAN SAID THE 1994 FIRSTQUARTER EARNINGS ARE EXPECTED TO BE LESS THAN THE 22 CENTS A SHARE LAST YEAR WITHOUT THE GAIN 9312220052 931222 BUSINESS BRIEF SUMITOMO BANK OF CALIFORNIA RISE IN LOANLOSS RESERVES MAY CAUSE 4THQUARTER LOSS SUMITOMO BANK OF CALIFORNIA SAID IT EXPECTS TO BOOST FOURTHQUARTER LOAN LOSSES RESERVES BY ABOUT 50 MILLION TRIGGERING A NET LOSS FOR THE PERIOD AND LEADING THE BANK TO CUT ITS DIVIDEND IN HALF THE BANK BASED IN SAN FRANCISCO IS THE STATE'S SEVENTHLARGEST IT ATTRIBUTED THE EXPECTED LOSS TO THE SLUMPING STATE ECONOMY AND ITS EFFECT ON SUMITOMO'S COMMERCIAL REAL ESTATE PORTFOLIO THE 50 MILLION INCREASE WOULD BRING TOTAL LOSS RESERVES TO 113 MILLION REPRESENTING ABOUT 26 OF TOTAL LOANS SUMITOMO'S FOURTHQUARTER DIVIDEND WHICH HAD BEEN 40 CENTS A SHARE IN THE THIRD QUARTER AND YEAREARLIER PERIOD WILL BE CUT TO 20 CENTS THE PAYOUT WILL BE MADE JAN 25 TO SHAREHOLDERS OF RECORD ON DEC 31 SUMITOMO SAID 9312220051 931222 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN SWEDEN TERMED ITS TALKS DECISIVE WHILE AUSTRIA AND FINLAND REPORTED BREAKTHROUGHS ON ENVIRONMENTAL AND FOREIGNPOLICY ISSUES ALL FOUR COUNTRIES FACE A MARCH 1 DEADLINE TO ALLOW NATIONAL VOTES THE EC AGREED TO ALLOW THE APPLICANTS TO BLOCK GOODS FROM EC COUNTRIES THAT DON'T MEET TOUGH ENVIRONMENTAL STANDARDS THE FOUR COUNTRIES ACCEPT THE EC UNITY TREATY PROVIDING FOR A COMMON FOREIGN AND SECURITY POLICY A COMPROMISE ALLOWS AUSTRIA TO MAINTAIN ITS NEUTRALITY THE EC WILL LET SWEDEN CONTINUE TO ALLOW SNUFF FOR CHEWING VITAL TO SWEDISH POPULAR SUPPORT TRICKIER ISSUES LIE AHEAD SUCH AS CUTTING FARM PRICES IN AUSTRIA FINLAND AND NORWAY AUSTRIA AND THE EC DISAGREE ABOUT TRUCK TRANSIT ON MOUNTAIN ROUTES AND NORWAY DEMANDS PROTECTION FOR ITS NORTH SEA OIL RESERVES AND FISH STOCKS TO AVERT LAYOFFS OF 10000 OR 11 OF THE 87000 MINERS IN GERMANY'S RUHR VALLEY REGION EMPLOYERS AND THE IG BERGHAU AND ENERGIE UNION AGREED TO REDUCE THE WORKWEEK TO FOUR DAYS IN THE 199495 AGREEMENT PAY WILL BE CUT 6 IN CONTRAST TO A PREVIOUSLY SCHEDULED 3 INCREASE EVEN SO EMPLOYERS MAY CANCEL THE AGREEMENT DURING THE NEXT TWO YEARS IF THERE ARE STILL TOO MANY WORKERS OR IF THE PACT INCREASES THE UNPROFITABLE MINING INDUSTRY'S COSTS UKRAINE'S PARLIAMENT APPROVED A TWOSTAGE PROGRAM TO REDUCE MONOPOLIES AND TO DEVELOP A COMPETITIVE ECONOMY THE FIRST PHASE INCLUDES CREATION OF A LEGAL AND INVESTMENT FRAMEWORK INCLUDING ANTITRUST REGULATIONS THE SECOND STAGE IS TO BEGIN ONCE THE ECONOMY STABILIZES WHICH PRESUMES DEVELOPMENT OF MARKET MECHANISMS INCLUDING A FINANCE AND CREDIT SYSTEM AND NEW BANKS A LARGE NUMBER OF SMALL AND MEDIUMSIZED ENTERPRISES AND OPERATIONS BY FOREIGN BUSINESSES SO FAR UKRAINE HAS STUMBLED BADLY WITH ECONOMIC REFORM ATTEMPTS ITS 1993 BUDGET DEFICIT REPRESENTS 20 OF GROSS DOMESTIC PRODUCT CHENGDU AIRPORT IN SOUTHWESTERN CHINA WILL OPEN TO FOREIGN AIRCRAFT NEXT TUESDAY CHINESE AVIATION OFFICIALS DETERMINED THAT THE AIRPORT IN SICHUAN PROVINCE CONFORMS WITH INTERNATIONAL STANDARDS ON TELECOMMUNICATIONS NAVIGATION AND SUPPLIES THE COUNTRY'S AVIATION INFRASTRUCTURE HAS BEEN STRAINED BY GROWING NUMBERS OF AIR CARRIERS AND PASSENGERS IN RECENT YEARS FATAL PLANE CRASHES A RECORD FIVE LAST YEAR AND THREE THIS YEAR HAVE BEEN PARTLY ATTRIBUTED TO OBSOLETE OR DEFECTIVE GROUNDCONTROL AND COMMUNICATIONS SYSTEMS AND POORLY TRAINED AIRPORT PERSONNEL A FRENCH BULLET TRAIN TRAVELING AT 185 MILES PER HOUR DERAILED NEAR CHAULNES 83 MILES NORTH OF PARIS BUT ALL THE CARS AND TWO ENGINES REMAINED UPRIGHT AND A FEW OF THE 211 PASSENGERS SUSTAINED MINOR INJURIES THE INCIDENT MARKED THE SECOND DERAILMENT FOR THE 12YEAROLD TRAIN A GRAND VITESSE HIGHSPEED SYSTEM THE FIRST ON THE NORTHERN TGV LINE SINCE IT OPENED IN MAY AND THE FIRST INVOLVING INJURIES THE NATIONAL RAILWAY COMPANY SNCF SAID DRENCHING RAIN CREATED A SIXFOOT HOLE IN THE TRACK BED CAUSING FOUR OF THE CARRIAGES TO JUMP THE RAILS AS THE TRAIN WAS BOUND FROM VALENCIENNES TO THE CAPITAL AT CRUISING SPEED A TGV REQUIRES 125 MILES TO STOP RENT INCREASES IN WESTERN GERMAN CITIES ARE RUNNING WELL BELOW THE 36 ANNUAL INFLATION RATE A REAL ESTATE GROUP SAID IN THE FIRST EIGHT MONTHS RENTS ROSE 16 FOR NEWER APARTMENTS AND 23 FOR OLDER DWELLINGS FOLLOWING INCREASES OF AS MUCH AS 10 IN 1991 AND 5 LAST YEAR THE SLOWER RATE MITIGATES WHAT HAD BEEN A MAJOR FACTOR IN INFLATION GROWTH MEXICAN PRESIDENT CARLOS SALINAS ON A VISIT TO JAPAN SAID THE NORTH AMERICAN FREE TRADE AGREEMENT WITH CANADA AND THE US WON'T PRODUCE AN ECONOMIC FORTRESS THAT EXCLUDES OTHER NATIONS MR SALINAS WHO HELD INVESTMENT TALKS WITH JAPAN'S BIGBUSINESS GROUPS AND GAVE SEVERAL SPEECHES SAID THAT MEXICO INSISTED ON PROVISIONS TO ENABLE TRADE DEALS WITH OTHER REGIONS AND COUNTRIES AND THAT IT WANTS DIVERSIFIED TRADING PARTNERS SOME COUNTRIES HAVE EXPRESSED CONCERN THAT THE NAFTA MEMBERS MIGHT ERECT BARRIERS BY CREATING A TRADE BLOC SIMILAR TO THE EUROPEAN COMMUNITY BUT MR SALINAS SAID MEXICO CAN EXPAND ITS TRADE LINKS WITH JAPAN AND CITED PLENTIFUL OPPORTUNITIES IN MEXICO FOR JAPANESE BUSINESSES HE URGED JAPAN TO TRANSFER HIGHTECHNOLOGY DEVELOPMENT SAYING MEXICO WANTS TO BE A BENEFICIARY OF JAPANESE SCIENTIFIC RESEARCH HE SAID MEXICO IS SPENDING 57 OF GROSS DOMESTIC PRODUCT ON EDUCATION IN A BID TO BOOST ITS MANUFACTURERS' GLOBAL COMPETITIVENESS CHINA'S MOTORCYCLE INDUSTRY WHICH INCLUDES A DOZEN JOINTVENTURE FACTORIES COULD PRODUCE THREE MILLION VEHICLES THIS YEAR TRIPLE THAT OF A YEAR EARLIER MOTORCYCLES ARE POPULAR AS A CAR'S PRICE TAG REPRESENTS SEVERAL YEARS OF PERSONAL PAY A PUBLIC STATUE OF VLADIMIR LENIN THE LAST IN THE FORMER SOVIET BALTIC REPUBLICS WAS REMOVED IN THE ESTONIAN CITY OF NARVA WHERE THE BRONZE LIKENESS OF THE DEFUNCT USSR'S FOUNDER STOOD FOR 41 YEARS TO RESPECT COMMUNISTS IN THE MOSTLY ETHNIC RUSSIAN CITY THE CABLE WASN'T PUT AROUND THE STATUE'S NECK 9312220050 931222 TEXAS JOURNAL WINNERS & LOSERS FIRST CITY BANCORP IN AN EMBARRASSMENT TO FEDERAL REGULATORS THE FDIC APPROVED A PRELIMINARY PLAN TO RETURN MONEY LEFT OVER FROM THE FORCED SALE OF THIS HOLDING COMPANY'S BANKS SELFPROMOTING ATTORNEYS STATE BAR OF TEXAS MEMBERS FAILED TO PASS A RULE BANNING LAWYER ADVERTISING THAT APPEALS PRIMARILY TO EMOTIONS OR THAT CONTAINS UNSUBSTANTIATED CLAIMS ROSS PEROT FEDERAL EXPRESS WILL BUILD A 300 MILLION HUB AT THE FAMILY'S ALLIANCE AIRPORT PROJECT BULLET TRAIN TEXAS TGV ADMITTED IT CAN'T MEET A DEC 31 DEADLINE TO RAISE MONEY TO BUILD THE 200MPH SUPERTRAIN AMERICAN AIRLINES THE ILLINOIS SUPREME COURT SAID FREQUENT FLIERS' CLUB MEMBERS CAN SEEK MONETARY DAMAGES BECAUSE THE AIRLINE CHANGED ITS AWARDS RULES ROSS PEROT A NEW WALL STREET JOURNAL/NBC NEWS POLL INDICATES THE PUBLIC'S FEELINGS HAVE SOURED TOWARD THE BILLIONAIRE WHO ALSO GRACED THE COVER OF TEXAS MONTHLY'S LATEST BUM STEER EDITION 9312220049 931222 BUSINESS BRIEF AIRBORNE FREIGHT CORP SHAREHOLDER GROUP MAY SELL ITS 83 STAKE IN COMPANY A GROUP THAT INCLUDES JAPANESE COMPANIES MITSUI & CO AND TONAMI TRANSPORTATION CO SAID IT MAY SELL ITS 83 STAKE IN FREIGHT CONCERN AIRBORNE FREIGHT CORP IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE GROUP SAID IT WAS CONSIDERING CONVERTING ITS PREFERREDSHARE HOLDINGS TO COMMON STOCK AND SELLING THE SHARES AT A FUTURE DATE IN ANNOUNCING THE POSSIBILITY THE GROUP SAID IT RELINQUISHED ITS RIGHT TO NAME A REPRESENTATIVE TO AIRBORNE'S BOARD UNDER A 1989 STOCKPURCHASE AGREEMENT WITH THE SEATTLE COMPANY MITSUI CITED LOW US INTEREST RATES AND THE RISING VALUE OF THE YEN TO THE DOLLAR AS FACTORS PROMPTING IT TO CONSIDER A POSSIBLE SALE OF ITS AIRBORNE STAKE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE AIRBORNE SHARES CLOSED AT 33 DOWN 50 CENTS 9312220048 931222 SMALL STOCK FOCUS MARKET DECLINES AMID THIN TRADING DOMINATED BY YEAREND ADJUSTMENTS BY LARRY BAUMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS ENDED A THINLY TRADED SESSION LOWER TRADERS SAID YESTERDAY'S ACTIVITY WAS DOMINATED BY INVESTORS LOOKING TO FINALIZE THEIR YEAREND POSITIONS WHICH TYPICALLY INVOLVES SELLING FOR TAX PURPOSES AT THE SAME TIME THE TRADERS SAID SOME INVESTORS ARE STARTING TO BUY INTO THE COMPANIES AND INDUSTRY GROUPS THEY EXPECT WILL BE HOT AS 1994 KICKS OFF THE RUSSELL 2000 INDEX WHICH TRACKS SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES WAS DOWN 142 OR 056 AT 25050 A SERIES OF ERRORS IN THE SESSION RESULTED IN AN APPARENT SURGE IN THE NASDAQ COMPOSITE INDEX AT ABOUT 2 PM EST THE INDEX MOVED FROM DOWN MORE THAN TWO POINTS TO UP TWO ALMOST INSTANTANEOUSLY THE INDEX CONTINUED TO RISE WHILE OTHER KEY MARKET INDICATORS REMAINED LOWER ON THE DAY CONFUSING TRADERS WHO NOTICED THAT WHILE THE INDEX WAS UP THE STOCKS THEY FOLLOWED GENERALLY WEREN'T A NASDAQ SPOKESWOMAN SAID THE ERROR WHICH HAS SINCE BEEN CORRECTED WAS DUE TO YESTERDAY'S START OF REALTIME REPORTING OF CONVERTIBLE DEBENTURE TRADES SOME OF WHICH INADVERTENTLY WERE INCLUDED IN THE EQUITY INDEX THE NASDAQ COMPOSITE INDEX ENDED THE DAY DOWN 452 OR 059 AT 75563 BANYAN SYSTEMS PLUNGED 11 1/8 OR 434 TO 14 1/2 AFTER THE COMPANY LATE MONDAY SAID NET INCOME AND REVENUE FOR THE FOURTH QUARTER AND YEAR ENDING DEC 31 ARE LIKELY TO FALL SHORT OF ANALYSTS EXPECTATIONS THE PRODUCER OF SOFTWARE FOR COMPUTER NETWORKS SAID SALES INQUIRIES REMAIN HIGH BUT ADDED THAT WE ARE EXPERIENCING SOME DELAYS IN CUSTOMER PURCHASE DECISIONS THE STATEMENT LED TO DOWNGRADES BY LEHMAN BROTHERS WERTHEIM SCHRODER AND LADENBURG THALMANN & CO ROSS STORES SAID LATE MONDAY THAT IT EXPECTS ITS EARNINGS FOR 1993 TO RANGE FROM 110 TO 115 A SHARE COMPARED WITH 130 IN 1992 IF ITS DECEMBER SALES CONTINUE TO BE DISAPPOINTING YESTERDAY SMITH BARNEY LOWERED ITS SHARE RATING ON ROSS TO UNDERPERFORM FROM NEUTRAL AND THE STOCK DROPPED 3 5/8 OR 216 TO 13 1/8 NAI TECHNOLOGIES FELL 3/4 OR 91 TO 7 1/2 ON NEWS THAT THE COMPANY EXPECTS FOURTHQUARTER SALES AND OPERATING RESULTS TO BE BELOW EXPECTATIONS AND THAT SALES IN THE FOURTH QUARTER WILL BE ABOUT THE SAME AS A YEAR EARLIER NAI ALSO SAID ITS GROSS MARGINS WILL LIKELY DECLINE THROUGH EARLY 1994 COMDATA HOLDINGS WAS DOWN 3/4 OR 86 TO 8 AFTER THE COMPANY SAID IT DECIDED TO DELAY A PROPOSED OFFERING OF 127 MILLION COMMON SHARES DUE TO MARKET CONDITIONS CARE ENTERPRISES ROSE 1 1/2 OR 235 TO 7 7/8 ON NEWS THAT THE COMPANY SIGNED A DEFINITIVE MERGER AGREEMENT WITH REGENCY HEALTH SERVICES UNDER WHICH EACH SHARE OF CARE WILL BE CONVERTED INTO 071 SHARE OF A REGENCY COMMON SHARE IN A TAXFREE TRANSACTION VALUED AT 120 MILLION TO CARE SHARHOLDERS MRS TECHNOLOGY WAS UP 1 OR 95 TO 11 1/2 AFTER THE COMPANY SAID IT GOT AN ORDER FROM AT&T BELL LABORATORIES FOR MODEL 500HT PANELPRINTER SCHEDULED FOR SHIPMENT LATER THIS MONTH MWAVE ENDED UP 1/4 AT 13 1/4 REVERSING MONDAY'S 88 SLIDE AFTER KEMPER SECURITIES RAISED ITS RATING ON THE STOCK TO LONGTERM BUY FROM HOLD THE UPGRADE WAS MADE ON A PRICE BASIS KEMPER SAID NOTING THAT THE SHARE PRICE IS OFF ABOUT 50 FROM ITS 52WEEK HIGH OF 27 DECKERS OUTDOOR ROSE 1 1/4 OR 74 TO 18 1/4 AFTER SMITH BARNEY INITIATED COVERAGE OF THE STOCK WITH A RATING OF OUTPERFORM GENTEX WAS UP 1 OR 32 AT 32 1/4 FOLLOWING THE COMPANY'S STATEMENT THAT AS A RESULT OF UNEXPECTEDLY HIGH REVENUE IN ITS AUTOMOTIVE AND FIREPROTECTION PRODUCTS DIVISION ITS FOURTHQUARTER NET INCOME WILL COME IN ABOUT 10 HIGHER THAN ANALYSTS' CONSENSUS ESTIMATE OF 18 CENTS A SHARE WHICH COMPARES WITH 12 CENTS IN THE YEAREARLIER PERIOD CARELINE WHICH PROVIDES EMERGENCY CRITICAL CARE AND NONEMERGENCY AMBULANCE SERVICES AND WHICH WAS PRICED AT 850 AT MONDAY'S INITIAL PUBLIC OFFERING WAS UP 1/8 YESTERDAY TO 8 7/8 SCOTT BLEIER VICE PRESIDENT OF TECHNICAL RESEARCH AT JOSEPHTHAL LYON & ROSS SAID THE DECLINE IN THE NASDAQ AND SMALLCOMPANY STOCK PRICES GENERALLY WAS DUE TO YEAREND POSITION ADJUSTING PEOPLE DON'T WANT TO DO A LOT HE ALSO SAID THE DECLINES REFLECT A CORRECTION FROM LAST WEEK'S OPTIONEXPIRATIONRELATED GAINS BUT OVERALL MR BLEIER SAID THE MARKETS ARE IN ALLTIMEHIGH TRADING RANGES A FEW PERCENTAGE POINTS FROM THEIR RECORDS AND THAT THE MARKETS WILL DISPLAY A BIAS TO THE DOWNSIDE AS THEY DIGEST RECENT GAINS BUT HE WAS QUICK TO ADD THAT THE LIMITED PRICE DECLINES ARE PUTTING THE MARKETS INTO A SUPERIOR TECHNICAL POSITION ROBERT ANTOLINI HEAD OF OVERTHECOUNTER TRADING AT DONALDSON LUFKIN & JENRETTE SECURITIES SAID THAT WHILE TRADING WAS LIMITED AND DOMINATED BY YEAREND SELLING THERE WAS SOME SELECTIVE BUYING BY INVESTORS LOOKING TO POSITION THEMSELVES FOR NEXT YEAR EVERYONE WANTS TO KNOW WHAT WILL BE HOT IN THE FIRST QUARTER HE SAID 9312220047 931222 BUSINESS BRIEF MANVILLE CORP RIVERWOOD UNIT IS PLANNING TO TRIM COSTS SELL TIMBER MANVILLE CORP SAID ITS PAPERBOARD AND PACKAGING UNIT RIVERWOOD INTERNATIONAL CORP PLANS TO CONSOLIDATE SOME OPERATIONS IN A COSTCUTTING MOVE RESULTING IN A FOURTHQUARTER PRETAX CHARGE OF 25 MILLION TO 30 MILLION RIVERWOOD A PUBLICLY HELD COMPANY 815OWNED BY MANVILLE ALSO SAID IT WILL RECORD A GAIN OF 105 MILLION OR 16 CENTS A SHARE ON THE SALE OF INTERESTS IN 60000 ACRES OF TIMBERLAND TO JOHN HANCOCK MUTUAL LIFE INSURANCE CO IN JULY RIVERWOOD HAD FORECAST A GAIN OF 10 CENTS A SHARE ON THE SALE DENVERBASED MANVILLE SAID THE NET EFFECT OF THE RESTRUCTURING AND THE TIMBERLAND TRANSACTION WOULD BE TO INCREASE THE PARENT COMPANY'S FOURTHQUARTER EARNINGS BY 21 MILLION TO 42 MILLION OR TWO TO THREE CENTS A SHARE IN 1992'S FOURTH QUARTER MANVILLE EARNED 148 MILLION OR EIGHT CENTS A SHARE AFTER A 21 MILLION CHARGE IN ADDITION MANVILLE REITERATED THAT ITS SCHULLER FIBERGLASS UNIT IS REVIEWING THE NEED FOR FOURTHQUARTER CHARGES RELATED TO CURRENT AND FORMER OPERATIONS 9312220046 931222 TUESDAY'S MARKETS STOCKS SLIDE AS BONDS WEAKEN INVESTORS ARE WARY AS FED PANEL MEETS US CURRENCY MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES SLUMPED AMID WEAK BOND PRICES THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE FELL 1006 POINTS TO 374515 STANDARD & POOR'S 500STOCK INDEX SLIPPED 055 TO 46530 AND THE NASDAQ COMPOSITE INDEX FELL 452 TO 75563 ANALYSTS SAID INVESTORS IN BOTH THE STOCK AND BOND MARKETS WERE CAUTIOUS ABOUT YESTERDAY'S MEETING OF THE FEDERAL OPEN MARKET COMMITTEE MANY EXPECT THE FEDERAL RESERVE'S POLICYMAKING BODY TO SHIFT FROM A NEUTRAL POSITION TO A BIAS TOWARD RESTRAINT ANALYSTS SAID THE BOND MARKET ALSO WAS PRESSURED EARLY IN THE DAY BY CONCERNS ABOUT YESTERDAY'S AUCTION OF TWOYEAR NOTES BUT A STRONGERTHANEXPECTED SALE OF THE NOTES HELPED BOND PRICES RECOVER SOMEWHAT LATE IN THE DAY HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP ARGUED THAT STOCK AND BOND INVESTORS KNOCKED PRICES LOWER BECAUSE THEY EXPECT THE FEDERAL RESERVE NOT TO RAISE SHORTTERM RATES USUALLY THE FINANCIAL MARKETS WOULD PREFER RATES TO REMAIN LOW BUT MR JOHNSON CONTENDED THAT BOTH THE BOND AND STOCK MARKETS WOULD BENEFIT FROM AN INCREASE IN RATES A SMALL UPTICK WOULD SLOW THE RECENT STEAMY ACCELERATION OF THE ECONOMY AND ENSURE A PROLONGED STEADY RECOVERY WITH INFLATION UNDER CONTROL HE SAID THE FINANCIAL MARKETS ARE BRACING FOR THE NEWS THAT THE FED WON'T RAISE RATES MR JOHNSON SAID HE ALSO POINTED OUT THAT INVESTORS ARE INCREASINGLY NERVOUS ABOUT A DROPOFF IN THE FLOW OF FUNDS INTO THE MARKETS MR JOHNSON SAID FEDERAL RESERVE DATA SHOW THAT IN NOVEMBER INVESTORS SHIFTED A MERE 44 BILLION OUT OF BANK ACCOUNTS AND CERTIFICATES OF DEPOSIT COMPARED WITH AN AVERAGE 129 BILLION A MONTH DURING 1992 THE FEAR IS THAT SAVERS WILL STOP SHIFTING ALTOGETHER AND START LETTING THEIR CASH POSITIONS BUILD MR JOHNSON SAID THE STORY OF THIS BULL MARKET HAS BEEN THE STORY OF THIS SHIFT IN FUNDS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 027 TO 11014 IN MAJOR MARKET ACTION STOCK PRICES SLID VOLUME TOTALED 2666 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1211 ISSUES FELL AND 876 ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST LESS THAN AN EIGHTH OF A POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 631 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17103 MARKS AND 11118 YEN COMPARED WITH 17130 MARKS AND 11065 YEN MONDAY 9312220045 931222 WHO'S NEWS PLUM CREEK TIMBER CO PLUM CREEK TIMBER CO SEATTLE RICK R HOLLEY 41 YEARS OLD CURRENTLY VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS FORESTPRODUCTS CONCERN WAS ELECTED A DIRECTOR INCREASING BOARD MEMBERSHIP TO SIX AS REPORTED MR HOLLEY WILL SUCCEED DAVID D LELAND 58 AS PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE JAN 1 MR LELAND WILL REMAIN CHAIRMAN 9312220044 931222 PRITZKER GROUP DROPS OUT OF BIDDING TO GAIN CONTROL OF AMERICA WEST AIR BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL AN INVESTMENT GROUP LED BY THE PRITZKER FAMILY OF CHICAGO HAS WITHDRAWN FROM THE BIDDING FOR AMERICA WEST AIRLINES WHICH IS SEEKING FRESH CAPITAL TO EMERGE FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS A MEMBER OF THE PRITZKERLED GROUP WHICH INCLUDES WERTHEIM SCHRODER & CO SAID IT BACKED OUT OF THE PROCESS BECAUSE OF CONFLICTS WITH AMERICA WEST CHAIRMAN WILLIAM A FRANKE THE WITHDRAWL ISN'T NECESSARILY A SETBACK FOR THE PHOENIXBASED AIRLINE WHICH HAS GENERATED REASONABLY STRONG PROFITS THIS YEAR AND IS LIKELY TO ATTRACT WOULDBE INVESTORS THE LOWCOST CARRIER COULD EVEN EMERGE WITHOUT NEW INVESTORS IN A SOCALLED STANDALONE PLAN WHICH WOULD GIVE UNSECURED CREDITORS AND SHAREHOLDERS GREATER VALUE IN THE REORGANIZED COMPANY BUT FOR THE PRITZKER FAMILY THE WITHDRAWL MARKS THE END OF ITS EFFORTS AT LEAST FOR NOW TO BE A PLAYER IN THE AIRLINE INDUSTRY AND TO EXPAND ITS TRAVEL PROPERTIES WHICH INCLUDE HYATT CORP THE PRITZKERLED GROUP FORMALLY KNOWN AS AWA PARTNERS TRIED TO GAIN CONTROL OF AMERICA WEST IN SEPTEMBER BY PLEDGING TO BUY OUT CERTAIN CREDITORS FOR 90 MILLION AND TO INJECT ANOTHER 60 MILLION IN FRESH EQUITY INTO THE COMPANY BUT THE AMERICA WEST BOARD REJECTED THE OFFER SAYING IT WOULD HAVE UNFAIRLY LOCKED OUT OTHER BIDDERS FOR THE COMPANY THE PRITZKERLED GROUP HAD PREVIOUSLY SAID IT WOULD LIKELY SUBMIT A FORMAL BID FOR AMERICA WEST AND THE AIRLINE HAD AGREED TO REIMBURSE EXPENSES INCURRED IN THE PROCESS BUT A MEMBER OF THE GROUP SAID IT COULDN'T PROCEED BECAUSE AMERICA WEST AT MR FRANKE'S DIRECTION WOULD NOT GIVE IT THE FINANCIAL INFORMATION IT NEEDED THE CONFLICT APPARENTLY STEMS FROM MR FRANKE'S ONGOING DISPUTE WITH MICHAEL J CONWAY AMERICA WEST'S CHIEF EXECUTIVE OFFICER THE TWO MEN HAVE BEEN AT ODDS SINCE MR FRANKE A PHOENIX INVESTOR ARRIVED AT THE COMPANY AS CHAIRMAN IN 1992 MR CONWAY RECRUITED THE PRITZKERLED GROUP WHICH WOULD LIKELY HAVE KEPT MR CONWAY IN CHARGE AND DISMISSED MR FRANKE MR FRANKE DECLINED TO COMMENT ON WHY THE PRITZKERLED GROUP DROPPED OUT OR ON THE CHARGES THAT AMERICA WEST DIDN'T COOPERATE WITH THE GROUP THE PRITZKER'S DEPARTURE PROBABLY PUTS MR CONWAY IN A LESS SECURE POSITION BECAUSE NEW INVESTORS MAY BE IN MR FRANKE'S CAMP BUT MR CONWAY SAID HE FELT HIS JOB WAS SAFE BECAUSE HE'S OVERSEEN THE AIRLINE'S IMPROVED FINANCIAL PERFORMANCE THE PERFORMANCE OF THE COMPANY SPEAKS FOR ITSELF MR CONWAY SAID IN THE FIRST THREE QUARTERS OF 1993 AMERICA WEST EARNED 268 MILLION OR 108 A SHARE FOUR OR FIVE OTHER INVESTORS ARE KNOWN TO BE INTERESTED IN AMERICA WEST INCLUDING UAL CORP'S UNITED AIRLINES SEPARATELY AMERICA WEST SAID IT ADDED THREE NEW BOARD MEMBERS FILLING ONE VACANCY AND REPLACING TWO FORMER DIRECTORS JAMES T MCMILLAN A RETIRED MCDONNELL DOUGLAS CORP EXECUTIVE WAS ELECTED AS THE AIRLINE'S 10TH DIRECTOR AN INDEPENDENT SEAT VACANT SINCE SEPTEMBER THE TWO OTHER BOARD MEMBERS REPRESENT GPA GROUP PLC WHICH IS AN AMERICA WEST CREDITOR AND LESSOR OF AIRCRAFT TO THE COMPANY THEY ARE JOHN F TIERNEY AN ASSISTANT CHIEF EXECUTIVE AND FINANCIAL DIRECTOR OF GPA AND DECLAN TREACY A GPA GENERAL MANAGER OF CORPORATE FINANCE THEY SUCCEED JAMES CLARKE AND JAMES KING GPA EXECUTIVES WHO RESIGNED FROM THE BOARD BECAUSE OF NEW RESPONSIBILITIES WITH GENERAL ELECTRIC CAPITAL CORP A UNIT OF GENERAL ELECTRIC CORP WHICH RECENTLY MADE AN INVESTMENT IN GPA 9312220043 931222 WINDTUNNEL PROJECT FLIES IN AUSTERITY'S FACE BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL MOFFETT FIELD CALIF A 2 BILLION WINDTUNNEL COMPLEX PROPOSED FOR THIS HISTORIC NAVY AIRFIELD IS CREATING POLITICAL TURBULENCE THAT MAY DETERMINE THE FUTURE OF SCIENCE MEGAPROJECTS FUELED BY HIGHLEVEL INDUSTRY LOBBYING AND REGIONAL RIVALRIES THE BATTLE OVER THE PROJECT IS AN IMPORTANT TEST OF PRESIDENT CLINTON'S PLEDGE TO HELP US AEROSPACE COMPANIES COMPETE AGAINST FOREIGN RIVALS MORE BROADLY THE OUTCOME WILL REVEAL HOW MUCH APPETITE THE WHITE HOUSE AND CONGRESS STILL HAVE FOR SUCH HUGE AND HUGELY EXPENSIVE FEDERALLY FINANCED SCIENTIFICRESEARCH VENTURES IN THE FACE OF SHRINKING DEFENSE EXPENDITURES AND CUTS IN SOCIAL SPENDING THE BREWING FIGHT INVOLVES PLANS BY THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION TO BUILD THE WORLD'S MOST ADVANCED AND POWERFUL PAIR OF WIND TUNNELS DESIGNED BOTH FOR MILITARY RESEARCH AND TESTING AND FOR DEVELOPMENT OF COMMERCIAL AIRLINERS US COMPANIES WOULD BE ABLE TO STOP USING RUSSIAN AND EUROPEAN TESTING CENTERS WHILE REDUCING THE COST AND TIME OF DEVELOPING NEW AIRCRAFT INDUSTRY HAS BEEN PUSHING US AGGRESSIVELY TO PROVIDE THIS SERVICE SAYS RICHARD REEVES HEAD OF THE NASA OFFICE IN CHARGE OF AERONAUTICAL FACILITIES HE EVEN GOES SO FAR AS TO SAY THE FUTURE OF THE AEROSPACE INDUSTRY TO A LARGE EXTENT IS DEPENDENT ON THIS PROJECT WIND TUNNELS USE FANS TO PUSH AIR OR CERTAIN GASES THROUGH STEEL PASSAGEWAYS SOMETIMES AT VELOCITIES EXCEEDING THE SPEED OF SOUND OPTICAL AND OTHER INSTRUMENTS MEASURE DRAG LIFT AND THERMAL EFFECTS ON THE SURFACES OF MODELS AND THEN THE RESULTS ARE EVALUATED BY COMPUTERS NASA'S PROPOSED TUNNELS ACCORDING TO PROPONENTS WOULD SIMULATE REALWORLD FLYING CONDITIONS BETTER AND OFFER GREAT COSTSAVINGS TO AIRCRAFT DESIGNERS BY ALLOWING MODELS TO BE CHANGED MORE QUICKLY THE NEW DESIGN SOMEWHAT SMALLER THAN THE CURRENT 120FOOT LONG MOFFETT TUNNEL THE NATION'S LARGEST WOULD HELP BOOST ALLIMPORTANT FUELEFFICIENCY FOR THE AIRLINERS BOEING AND MCDONNELL DOUGLAS CORP ARE BETTING ON PAST THE YEAR 2000 BUT DESPITE NASA'S CHAMPIONING OF THE TUNNELS THE WHITE HOUSE MUST FIND A WAY TO SQUEEZE THEM INTO A VERY TIGHT FISCAL 1995 BUDGET PACKAGE INDUSTRY OFFICIALS HAVE BEEN TOLD THAT THE CURRENT DRAFT OF THE BUDGET CALLS FOR CONSTRUCTION OF THE TUNNELS IN PRINCIPLE AND THAT ONLY A LASTMINUTE DECISION BY MR CLINTON HIMSELF IS LIKELY TO REVERSE THAT POSITION NEVERTHELESS THE OFFICE OF MANAGEMENT AND BUDGET HAS BARRED NASA FROM SPENDING PREVIOUSLY APPROPRIATED MONEY TO BEGIN DESIGN WORK PENDING A FORMAL ANNOUNCEMENT OF THE PROJECT'S FATE EXPECTED SHORTLY AND LAWMAKERS ARE BOUND TO DEBATE THE MERITS OF THE TUNNELS AS THEY WILL OTHER BIGTICKET ITEMS IN THE BUDGET IN THEIR CAMPAIGN SPEECHES LAST YEAR PRESIDENT CLINTON AND VICE PRESIDENT AL GORE STRESSED THE IMPORTANCE OF FOSTERING INDUSTRY AND GOVERNMENT COOPERATION ON HIGHTECHNOLOGY RESEARCH JUST LAST MONTH WHEN NASA ADMINISTRATOR DANIEL GOLDIN MET IN SEATTLE WITH SENIOR EXECUTIVES FROM BOEING AND FOUR OTHER COMPANIES THE TUNNEL PROJECT WAS ONE OF THE MAIN TOPICS OF DISCUSSION TO CONVINCE SKEPTICS MR GOLDIN INVITED SENIOR WHITE HOUSE SCIENCE AND BUDGET OFFICIALS TO ATTEND THE SESSION IF OUR PRODUCTS ARE GOING TO REMAIN COMPETITIVE IN THE GLOBAL MARKET THEN US TESTING FACILITIES NEED TO BE WORLD CLASS SAYS DAVID KNOWLEN BOEING'S DIRECTOR OF TECHNICAL AFFAIRS ONE OF THE PARTICIPANTS ADDING THAT EVERYBODY LEFT PRETTY ENTHUSIASTIC THAT THE ADMINISTRATION UNDERSTOOD THAT MESSAGE LOUD AND CLEAR FOR 1994 NASA'S ENTIRE AERONAUTICS BUDGET TOTALS 16 BILLION AND IN THE WAKE OF LAST FALL'S TRAUMATIC CANCELLATION OF THE PARTLY BUILT 11 BILLION SUPERCOLLIDER NASA ALMOST CERTAINLY FACES AN UPHILL STRUGGLE TO GET ITS FUNDING AFTER UNSUCCESSFULLY PROMOTING THE PROJECT TO THE WHITE HOUSE FOR YEARS THE INDUSTRY NOW HOPES TO GET ITS WAY BY OFFERING TO SHARE LONGTERM OPERATING COSTS WE'RE MORE OR LESS PUTTING ALL OF OUR EGGS IN THIS BASKET SAYS BOEING'S MR KNOWLEN MEANWHILE THERE IS A FIERCE TUG OF WAR UNDER WAY OVER WHERE SUCH A FACILITY SHOULD BE BUILT BESIDES CALIFORNIA AT LEAST TWO OTHER STATES ARE HOPING TO BE THE TUNNELS' HOME AND MORE STATES MAY ENTER THE COMPETITION DEBATE OVER POTENTIAL SITES IS INTENSE MOFFETT FIELD ONE OF 12 NORTHERN CALIFORNIA BASES SLATED FOR CLOSURE BY DEFENSE CUTBACKS IS AMONG THE LEADING CANDIDATES NASA ALREADY HAS A WORLDCLASS RESEARCH OPERATION AT MOFFETT WHERE NEARLY EVERY US AIRCRAFT AND SPACE VEHICLE HAS BEEN TESTED SINCE THE 1950S NEARBY IS ONE OF THE TOP US SUPERCOMPUTING FACILITIES THE STATE'S CONGRESSIONAL DELEGATION AND A COALITION OF SAN FRANCISCOAREA COMPANIES LED BY PACIFIC GAS & ELECTRIC CO WHICH HOPES TO PROVIDE THE IMMENSE POWER NEEDED TO RUN THE TUNNELS ARE LOBBYING HARD FOR MOFFETT SUCCESS COULD BRING SOME 2000 NEW JOBS AND A BOOST FOR CALIFORNIA'S BATTERED AEROSPACE INDUSTRY LOCATING THE PROPOSED TESTING COMPLEX IN THE HEART OF SILICON VALLEY CALIFORNIA'S DEMOCRATIC SEN BARBARA BOXER HAS POINTEDLY REMINDED THE CLINTON ADMINISTRATION WOULD GO A LONG WAY TOWARD SOFTENING THE BLOW OF DEFENSE CUTBACKS BY REPLACING MANY OF THE HIGH VALUEADDED JOBS LOST IN MY STATE OTHER MOFFETT PROPONENTS SUGGEST THE OUTCOME COULD AFFECT CALIFORNIA'S GUBERNATORIAL RACE NEXT YEAR AND INFLUENCE THE ATTITUDE OF THE STATE'S VOTERS IN THE NEXT PRESIDENTIAL PRIMARY PG&E THE NATION'S LARGEST ELECTRIC UTILITY WOULD BENEFIT TREMENDOUSLY IF CALIFORNIA GETS THE PROJECT AT PEAK LOAD THE PROJECT WOULD REQUIRE ABOUT 400 MEGAWATTS OF ELECTRICITY ROUGHLY EQUAL TO THE POWER GENERATED TO SUPPLY CURRENT TO ALL OF SAN FRANCISCO PG&E CHAIRMAN RICHARD CLARKE SAYS THE UTILITY IS REALLY TRYING TO BE A PROMOTER AND AN ADVOCATE FOR THE TUNNELS INCLUDING OFFERING HIGHLY COMPETITIVE RATES AND SETTING UP A PROJECT OFFICE INSIDE NASA'S MOFFETT FIELD COMPLEX OTHER AREAS ARE EQUALLY EAGER TO REAP THE BENEFITS INCLUDING VICE PRESIDENT GORE'S HOME STATE OF TENNESSEE WHICH BOASTS ITS OWN AIR FORCE WINDTUNNEL OPERATION BOEING WHICH LAST YEAR SCRATCHED PLANS TO BUILD A NEW STATEOFTHEART WIND TUNNEL SO FAR HASN'T THROWN ITS WEIGHT BEHIND ANY SITE INSTEAD IT IS FOCUSING ON PRODDING THE ADMINISTRATION TO COME UP WITH CONSTRUCTION FUNDS DICK DAY DIRECTOR OF ENGINEERING LABORATORIES FOR BOEING'S COMMERCIALAIRPLANE GROUP SAYS THE COMPANY RECENTLY TESTED ITS 737X MODEL OVERSEAS TO GIVE PROSPECTIVE CUSTOMERS PRELIMINARY DATA ABOUT RANGE AND OPERATING COSTS THE PLANES WON'T GO INTO SERVICE UNTIL 1997 BUT MR DAY WORRIES THAT EUROPEAN AEROSPACE CONCERNS USE THE SAME TEST SITES AND THEREFORE HAVE ACCESS TO BOEING'S DATA OUR MAJOR COMPETITORS KNOW EXACTLY WHAT WE'VE DONE HE SAYS IN OUR BUSINESS YOU'RE EITHER LEADING OR YOU'RE CHASING 9312220042 931222 FOOD DOMINO'S STOPS PROMISING PIZZA IN 30 MINUTES BY KRYSTAL MILLER AND RICHARD GIBSON STAFF REPORTERS OF THE WALL STREET JOURNAL AFTER YEARS OF PROMISING TO DELIVER PIZZA WITHIN 30 MINUTES DOMINO'S PIZZA INC IS DISCARDING THE MARKETING CONCEPT AROUND WHICH IT BUILT AMERICA'S BIGGEST PIZZADELIVERY BUSINESS IN THE WAKE OF A JURY AWARD OF 78 MILLION LAST WEEK TO A ST LOUIS WOMAN WHO HAD BEEN HIT AND INJURED BY A DOMINO'S DELIVERY DRIVER THE COMPANY SAID IT WILL NO LONGER GUARANTEE DELIVERY OF ITS PIZZAS WITHIN HALF AN HOUR OF A PHONE ORDER IF THE ORDER WAS DELIVERED IN MORE THAN 30 MINUTES CUSTOMERS RECEIVED A 3 DISCOUNT THE CLOSELY HELD COMPANY BASED IN ANN ARBOR MICH SAID IT WILL APPEAL THE ST LOUIS CIRCUIT COURT JURY'S AWARD WHICH WAS PRIMARILY PUNITIVE DAMAGES BUT THE COMPANY SAID THAT EVEN IF THE APPEAL WAS SUCCESSFUL THE NEGATIVE PUBLICITY WOULD CONTINUE TO HURT ITS IMAGE THE JURY IN LAST WEEK'S CASE FOUND THAT DOMINO'S WITH ITS 30MINUTE GUARANTEE SHOWED DISREGARD FOR THE SAFETY OF OTHER DRIVERS TWO OTHER PEOPLE HIT BY DOMINO'S DRIVERS HAVE WON MUCH SMALLER JURY AWARDS I BELIEVE WE ARE THE SAFEST DELIVERY COMPANY IN THE WORLD SAID DOMINO'S PRESIDENT THOMAS S MONAGHAN WHO VIRTUALLY INVENTED THE MODERN PIZZA DELIVERY BUSINESS WHEN HE FOUNDED DOMINO'S IN 1960 IN YPSILANTI MICH BUT THERE CONTINUES TO BE A PERCEPTION THAT THE GUARANTEE IS UNSAFE INDUSTRY ANALYSTS SAY THE DECISION TO DROP ITS DELIVERY GUARANTEE RAISES SOME CRUCIAL MARKETING ISSUES FOR DOMINO'S HOW SHOULD IT REPOSITION ITSELF AGAINST THE COMPETITION WHAT SHOULD IT STRESS THAT WILL BRING FORMER CUSTOMERS WHO LIKED THE 30MINUTE GUARANTEE BACK AGAIN WHAT ADVERTISING PITCH SHOULD IT MAKE TO REFURBISH ITS IMAGE THE CRITICAL ISSUE TO THEM IS STILL HOME DELIVERY IT'S THEIR FRANCHISE SAYS JACK TROUT PRESIDENT OF TROUT & RIES A GREENWICH CONN MARKETING STRATEGY FIRM ABANDONING A TIME LIMIT ISN'T NECESSARILY MORTALLY WOUNDING HE SAYS IF THEY CAN COME UP WITH ANOTHER WAY OF TALKING ABOUT HOW TERRIFIC THEY DELIVER TO THE HOME INDEED AS THE COMPANY TRIED TO GET THE WORD ON ITS NEW POLICY OUT TO ITS MORE THAN 5300 US FRANCHISES COMPANY OFFICIALS WERE SHIFTING FOCUS NOW DOMINO'S SAYS IT WILL EMPHASIZE A PRODUCTSATISFACTION PROGRAM GUARANTEEING A NEW PIZZA OR A REFUND TO UNHAPPY CUSTOMERS WE DON'T BELIEVE THIS WILL HAVE A NEGATIVE EFFECT ON SALES SAID TIM MCINTYRE A DOMINO'S SPOKESMAN WE CAN SLUG IT OUT IN THE PIZZA MARKET WITHOUT THE 30MINUTE GUARANTEE BUT SOME INDUSTRY OBSERVERS WONDER WHETHER DOMINO'S WHICH HAS ALWAYS BEEN KNOWN MORE FOR SPEED THAN TASTE CAN COMPETE WITH OTHER PIZZA MAKERS BOTH LOCAL AND FRANCHISES SOME OF DOMINO'S FRANCHISES ENDED THE 30MINUTE PLEDGE MONTHS AGO BECAUSE OWNERS WERE WORRIED THAT THE NEGATIVE PUBLICITY ABOUT POSSIBLY UNSAFE DRIVERS WOULD HURT BUSINESS STILL THE NEWS CAME AS A SHOCK TO SOME DOMINO'S STORE OPERATORS THAT'S ONE OF THE FOUNDATIONS OF OUR COMPANY SAID JEFF LIVENGOOD ASSISTANT MANAGER OF A FRANCHISE IN BOISE IDAHO THE SWITCH COULDN'T HAVE COME AT A WORSE TIME FOR DOMINO'S WHICH HAS BEEN TRYING TO HALT SLIDING SALES THIS YEAR THE COMPANY HAS ADDED THINCRUST AND DEEPDISH PIZZA SALADS AND BREADSTICKS TO ITS MENU SOME STORES ALSO SELL SUBMARINE SANDWICHES PREVIOUSLY DOMINO'S OFFERED ONLY PIZZA AND DRINKS ARCHRIVAL PIZZA HUT SAYS IT HAS NEVER EMBRACED A GUARANTEED DELIVERY TIME OUR REPUTATION HAS ALWAYS BEEN BASED ON THE QUALITY OF OUR PRODUCT SAYS A SPOKESMAN FOR THE WICHITA KANBASED UNIT OF PEPSICO INC WHICH HAS ABOUT 7800 RESTAURANTS IN THE US TO ENSURE SAFE DELIVERY PIZZA HUT SAYS IT CHECKS DRIVING RECORDS OF POTENTIAL DRIVERS THEN PUTS NEW HIRES THROUGH A SAFETYTRAINING PROGRAM THEY HAVE TO MAINTAIN AN EXCELLENT RECORD THE SPOKESMAN SAYS ADDING THAT THOSE WHO DRIVE WITHOUT PROBLEMS MAY BE ELIGIBLE FOR PRIZES RANGING FROM FREE CAR MAINTENANCE TO CARIBBEAN CRUISES MR MONAGHAN SAID DOMINO'S ALSO SCREENS THE DRIVING RECORDS OF ITS APPLICANTS AND REQUIRES THAT THEY ATTEND DEFENSIVEDRIVER TRAINING PROGRAMS NO MATTER WHAT WE DO IN THE AREAS OF SAFETY AND TRAINING FOR OUR DRIVERS SOME OF THE PUBLIC STILL HAVE A NEGATIVE PERCEPTION ABOUT US BECAUSE OF THE GUARANTEE HE SAID SO WE ARE ELIMINATING THE ELEMENT THAT CREATES THAT NEGATIVE PERCEPTION 9312220041 931222 LAW LEGAL BEAT JUDGE CLARIFIES STOCKSWAP RULING INVOLVING FIGHT OVER PARAMOUNT BY EDWARD FELSENTHAL AND LAURIE P COHEN STAFF REPORTERS OF THE WALL STREET JOURNAL MERGERS THAT INVOLVE STOCK SWAPS AMONG PUBLIC SHAREHOLDERS DON'T TRIGGER THE SORT OF CHANGE OF CORPORATE CONTROL THAT WOULD REQUIRE AN AUCTION A DELAWARE JUDGE RULED THE DECISION BY JUDGE WILLIAM CHANDLER IS SIGNIFICANT BECAUSE IT ADDRESSES AN AMBIGUITY LEFT BY THE STATE'S SUPREME COURT IN A RECENT RULING INVOLVING PARAMOUNT COMMUNICATIONS INC IN THAT CASE THE COURT RULED THAT PARAMOUNT'S PROPOSED COMBINATION WITH VIACOM INC WAS EFFECTIVELY A SALE OF THE COMPANY BECAUSE IT WOULD SHIFT CONTROL TO A SINGLE SHAREHOLDER VIACOM CHAIRMAN SUMNER REDSTONE THE COMPANIES HAD SOUGHT TO CHARACTERIZE THE DEAL AS A STRATEGIC ALLIANCE RATHER THAN AS A SALE WHETHER A DEAL IS A SALE IS CRUCIAL BECAUSE ONCE A COMPANY INDICATES ITS INTENTION TO SELL IT MUST GIVE EQUAL CONSIDERATION TO OTHER OFFERS AND USUALLY MUST SELL TO THE HIGHEST BIDDER BUT THE PARAMOUNT RULING DIDN'T SAY PRECISELY WHAT MAKES UP A CHANGE OF CONTROL AND THEREFORE A SALE AMONG OTHER THINGS THE RULING DIDN'T CLEARLY EXPLAIN WHETHER CONTROL MUST PASS TO A SINGLE INDIVIDUAL IN ORDER FOR A CHANGE TO OCCUR OR WHETHER IT'S ENOUGH THAT CONTROL SIMPLY TRANSFERS FROM ONE LARGE GROUP OF PUBLIC SHAREHOLDERS TO ANOTHER ALTHOUGH JUDGE CHANDLER'S DECISION COULD STILL BE OVERRULED BY THE STATE'S HIGH COURT AT LEAST FOR NOW IT SHEDS SOME LIGHT ON THE CONFUSION THE RULING SUGGESTS THAT THE PARAMOUNT CASE WAS UNIQUE BECAUSE OF MR REDSTONE'S ENORMOUS STAKE IN VIACOM SAID RICHARD ZIEGLER A LAWYER AT CLEARY GOTTLIEB STEEN & HAMILTON WHICH REPRESENTED THE SOCIETY FOR SAVINGS BANCORP INC ONE OF THE COMPANIES INVOLVED IN THE MERGER CASE WHERE THERE'S NO SHIFT TO A CONTROLLING STOCKHOLDER AND CONTROL REMAINS WITH THE PUBLIC AT LARGE THE OBLIGATIONS FOR AN AUCTION AREN'T TRIGGERED MR ZIEGLER SAID THE HIGH COURT ALSO MAY SOON HELP CLARIFY ITS OWN RULING IN THE PARAMOUNT CASE WHICH WAS ONLY A PRELIMINARY ORDER WHEN IT ISSUES A FULLBLOWN OPINION THE CASE BEFORE JUDGE CHANDLER WAS FILED BY A SHAREHOLDER OF SOCIETY FOR SAVINGS WHICH AGREED IN MARCH TO MERGE WITH BANK OF BOSTON IN A STOCK SWAP THE SHAREHOLDER ARGUED THAT SOCIETY FOR SAVINGS' BOARD SHOULDN'T HAVE SIGNED OFF ON THE DEAL UNTIL IT HAD PUT THE COMPANY ON THE BLOCK IN SEARCH OF HIGHER BIDS BUT JUDGE CHANDLER RULED THAT AN AUCTION WASN'T NECESSARY CONTROL OF BANCORP REMAINED IN A LARGE FLUID MARKET OF DISAGGREGATED SHAREHOLDERS AFTER THE MERGER HE WROTE BOTH COMPANIES WERE PUBLICLY OWNED NEITHER COMPANY HAD A LARGE CONTROLLING BLOCK OF SHARES HELD BY ONE INDIVIDUAL OR ENTITY WILLIAM PRICKETT A LAWYER FOR THE PLAINTIFF SAID HE WILL APPEAL THE CASE TO THE STATE SUPREME COURT A CURRENT AND A FORMER EMPLOYEE OF AMERICAN EXPRESS BANK INTERNATIONAL HAVE BEEN INDICTED BY A US GRAND JURY FOR THEIR ALLEGED ROLE IN LAUNDERING SOME 30 MILLION IN DRUG PROCEEDS THE 18COUNT INDICTMENT WAS HANDED UP BY A FEDERAL GRAND JURY IN MCALLEN TEXAS EARLIER THIS MONTH AND UNSEALED THIS WEEK IT ALLEGES THAT ANTONIO GIRALDI A SENIOR VICE PRESIDENT IN THE BANK'S MIAMI OFFICE AND LOURDES REATEGUI A FORMER BANKER IN THE BANK'S BRANCH IN BEVERLY HILLS CALIF HELPED LAUNDER MONEY FOR A NORTHERN MEXICAN DRUG CARTEL THE FEDERAL GRAND JURY SENT LETTERS EARLIER THIS YEAR TO MR GIRALDI WHO HAD PREVIOUSLY WORKED IN THE BANK'S BEVERLY HILLS OFFICE AND TO MS REATEGUI NOTIFYING THEM THAT THEY WERE UNDER INVESTIGATION IF CONVICTED THE TWO FACE MAXIMUM PRISON SENTENCES OF 60 YEARS AND FINES OF MORE THAN 15 MILLION EACH AN AMERICAN EXPRESS BANK SPOKESMAN DECLINED TO COMMENT ON THE INDICTMENT BARRY BOHRER THE ATTORNEY FOR MR GIRALDI SAID HIS CLIENT IS ABSOLUTELY NOT GUILTY AND WILL BE VINDICATED ROBERT TURNER THE LAWYER FOR MS REATEGUI SAID MY CLIENT IS SUFFERING FROM A BATTLE BETWEEN THE GOVERNMENT AND THE BANKING INDUSTRY ABOUT WHAT EMPLOYEES SHOULD KNOW ABOUT A BANK'S CLIENTS AMERICAN EXPRESS HAS SAID IT DIDN'T HAVE ANY REASON TO DOUBT THAT A CLIENT RICARDO AGUIRREVILLAGOMEZ WAS A WEALTHY BUSINESSMAN MR AGUIRREVILLAGOMEZ WAS INDICTED IN TEXAS LAST FEBRUARY FOR ALLEGED MONEY LAUNDERING FOR THE CARTEL HIS FAMILY CLAIMS THAT HE'S DEAD BUT THE GOVERNMENT BELIEVES THAT HE'S STILL ALIVE AMERICAN EXPRESS BANK INTERNATIONAL IS A UNIT OF AMERICAN EXPRESS BANK A SUBSIDIARY OF AMERICAN EXPRESS CO BOTH BANKS REPRESENT ONLY A SMALL PORTION OF THE COMPANY'S OVERALL BUSINESS NOTED TEXAS LAWYERS VOTED OVERWHELMINGLY IN FAVOR OF AN EFFORT TO REIN IN QUESTIONABLE AND EMOTIONAL ADVERTISING BY LAWYERS BUT NOT ENOUGH VOTES WERE TALLIED TO MAKE THE REFERENDUM VALID THE STATE BAR OF TEXAS SAID 85 OF THOSE WHO VOTED FAVORED THE PROPOSAL BUT ONLY 44 OF THE STATE'S 57326 LAWYERS CAST BALLOTS AT LEAST 51 HAD TO VOTE TO MAKE THE REFERENDUM VALID 9312220040 931222 TECHNOLOGY GORE SAYS TELECOMMUNICATIONS LAWS NEED EASING BUT SAFETY NET' TO STAY BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION SAID IT WILL TRY TO REPLACE LAWS THAT ARE OBSTRUCTING NEW TELECOMMUNICATIONS SERVICES BUT WILL KEEP A REGULATORY SAFETY NET TO ENSURE THAT EVERYBODY CAN USE THE SERVICES IN PARTICULAR SCHOOLS SHOULD HAVE THE SAME ACCESS AS HOMES TO THE NEW INFORMATION SUPERHIGHWAYS VICE PRESIDENT AL GORE SAID IN A SPEECH TO THE NATIONAL PRESS CLUB AND HE SAID THE NEW SERVICES INCLUDING PICTURE TELEPHONES TWOWAY TELEVISION AND LINKS TO THE LIBRARY OF CONGRESS ARCHIVES SHOULD BE AVAILABLE TO VIRTUALLY EVERYONE JUST AS BASIC TELEPHONE SERVICE IS NOW MR GORE'S SPEECH CAME AS THE ADMINISTRATION WORKS TO DRAFT LEGISLATION TO FULFILL A CAMPAIGN PLEDGE OF PROMOTING INVESTMENT IN FIBEROPTIC HIGHWAYS WHILE THE VICE PRESIDENT PROVIDED NO SPECIFICS THE SPEECH SHOWS THE ADMINISTRATION HAS A BROADER DEFINITION OF GUARANTEED SERVICES THAN SOME PEOPLE HAD EXPECTED ALSO WHILE MR GORE SAID THE ADMINISTRATION WOULD STEER A MIDDLE GROUND BETWEEN THE SHOALS OF SUFFOCATING REGULATION ON ONE SIDE AND THE ROCKS OF UNFETTERED MONOPOLIES ON THE OTHER HIS SPEECH MAY GIVE HEART TO COMPANIES THAT ARE MORE WORRIED ABOUT THE SHOALS THAN THE ROCKS FOR EXAMPLE MR GORE SAID THE ADMINISTRATION WILL SUPPORT REMOVAL OVER TIME AND UNDER APPROPRIATE CONDITIONS OF JUDICIAL AND LEGISLATIVE RESTRICTIONS ON ALL TYPES OF TELECOMMUNICATIONS COMPANIES CABLE TELEPHONE UTILITIES TELEVISION AND SATELLITE ALREADY CONGRESS IS CONSIDERING BILLS THAT WOULD LET CABLE OPERATORS OFFER TELEPHONE SERVICE AND WOULD LET TELEPHONE COMPANIES OFFER VIDEO LONGDISTANCE AND OTHER SERVICES AS EXPECTED MR GORE GAVE GENERAL PRAISE TO THOSE EFFORTS BUT HIS STATEMENT SEEMS TO OPEN THE DOOR TO OTHER TYPES OF DEREGULATION TOO FOR EXAMPLE ELECTRIC UTILITIES MET WITH ADMINISTRATION OFFICIALS THIS MONTH SEEKING RELAXATION OF REGULATIONS THAT COULD KEEP THEM FROM LAYING FIBEROPTIC LINES AND LEASING THEM TO OTHERS BROADCASTERS WANT THE ADMINISTRATION TO CONSIDER RELAXING RULES THAT KEEP A SINGLE COMPANY SUCH AS A NETWORK FROM OWNING STATIONS THAT REACH MORE THAN 25 OF THE PUBLIC AND RULES THAT KEEP SOMEBODY FROM OWNING A TELEVISION STATION AND CABLE SYSTEM IN THE SAME MARKET IT'S REALLY PRETTY RIDICULOUS FOR BROADCASTERS TO BE FACED WITH ALL THESE STRUCTURAL RESTRICTIONS WHEN YOU'VE GOT BELL ATLANTIC AND TCI MERGING A SPOKESWOMAN FOR THE NATIONAL ASSOCIATION OF BROADCASTERS SAID YESTERDAY AN ADMINISTRATION OFFICIAL SAID THE CROSSOWNERSHIP RULE IS ON THE TABLE BUT THERE CERTAINLY ARE NO DECISIONS ON IT MR GORE SAID THE ADMINISTRATION IS SEEKING CHANGES THAT WOULD REGULATE COMPANIES BY THE SERVICE THEY'RE PROVIDING INSTEAD OF THE TYPE OF COMPANY THEY ARE OUR GOAL IS NOT TO DESIGN THE MARKET OF THE FUTURE IT IS TO PROVIDE THE PRINCIPLES THAT SHAPE THAT MARKET HE SAID HE SKIRTED THE QUESTION OF WHETHER EVERY MARKET NEEDS TWO COMPETING SERVICES WHATEVER THE ANSWER HE SAID WE MUST PREVENT UNFAIR CROSSSUBSIDIES AND ENSURE THAT NOBODY USES MONOPOLY POWER TO LIMIT CONSUMER CHOICE SOME GOVERNMENT OFFICIALS HAVE INSISTED THERE SHOULD BE TWO WIRES TO THE HOME BUT CABLE AND TELEPHONE COMPANIES HAVE SAID THERE'S NO WAY MOST MARKETS COULD SUPPORT SUCH AN EXPENDITURE INDUSTRY OFFICIALS GENERALLY REACTED FAVORABLY TO MR GORE'S SPEECH BUT SAID THEY ARE EAGERLY WAITING FOR THE ADMINISTRATION TO SPELL OUT HOW IT WILL ACHIEVE ITS BROAD GOALS WHICH IT HAS PLEDGED TO DO NEXT MONTH THE DEVIL IS IN THE DETAILS AND WE HAVEN'T SEEN THE DETAILS YET SAID TOM TAUKE NYNEX CORP'S EXECUTIVE VICE PRESIDENT FOR GOVERNMENT AFFAIRS STILL HE SAID MR GORE'S COMMENTS ABOUT SCHOOLS MEAN THE CONCEPT OF UNIVERSAL SERVICE HAS BEEN BROADENED AND THAT COULD CREATE NEW BATTLES OVER THE ISSUE MR GORE SAID OUR SCHOOLS CANNOT REMAIN THE MOST IMPOVERISHED INSTITUTIONS IN OUR SOCIETY WHEN IT COMES TO COMMUNICATIONS SERVICES CURRENTLY CABLE COMPANIES HAVE NO REQUIREMENT TO SERVE ALL CUSTOMERS TELEPHONE COMPANIES DO AND THEY SUBSIDIZE RESIDENTIAL AND RURAL CUSTOMERS BY CHARGING BUSINESS CUSTOMERS MORE BUT SCHOOLS DON'T SHARE IN THAT BENEFIT BECAUSE THEY ARE CHARGED THE SAME RATE AS BUSINESSES THE ADMINISTRATION HASN'T DECIDED HOW TO RESTRUCTURE THE SUBSIDY NOW THAT THE LINES BETWEEN CABLE AND TELEPHONE COMPANIES ARE BLURRING AND IT'S NOT CLEAR HOW SCHOOLS WOULD BENEFIT FROM THE SUBSIDY OR WHETHER HOSPITALS UNIVERSITIES AND OTHER INSTITUTIONS ALSO WOULD PARTICIPATE THERE'S A LONG WAY TO GO BETWEEN DISCUSSING WIRING EVERYBODY AND DISCUSSING RATES AN ADMINISTRATION OFFICIAL SAID LAST WEEK THE HOUSE TELECOMMUNICATIONS SUBCOMMITTEE WHICH IS CONSIDERING A BILL TO BREAK DOWN BARRIERS BETWEEN CABLE AND TELEPHONE COMPANIES SENT A LETTER TO CABLE COMPANIES ASKING WHETHER THEY WOULD BE OPPOSED TO PROVIDING FREE HOOKUPS TO SCHOOLS THE CABLE INDUSTRY SAYS IT HAS ALREADY HOOKED UP 62000 SCHOOLS FOR FREE 9312220039 931222 MARKETING & MEDIA NOTED DATA SERVICES DUN & BRADSTREET CORP PLANS TO OFFER ITS MARKETING INFORMATION ONLINE TO SUBSCRIBERS OF THE PRODIGY COMPUTERIZED INFORMATION SERVICE BEGINNING IN EARLY 1994 D&B SAID IT EXPECTS THE SERVICE TO BE PARTICULARLY USEFUL TO SMALL BUSINESSES WITH OFFICES IN THE HOME 9312220038 931222 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL YEAREND TRADERS MUST SETTLE ON THE IRS'S NEW TERMS IF A STOCK TRANSACTION ON AN ESTABLISHED EXCHANGE OR MARKET SPANS TWO YEARS IS IT TAXABLE IN THE YEAR OF THE TRADE OR THE YEAR OF THE SETTLEMENT THAT ISSUE HAS BEEN CONFUSING INVESTORS SINCE THE 1986 TAX ACT NOTES ROBERT WILLENS OF LEHMAN BROTHERS NOW REVENUE RULING 9384 SUPPLIES THE IRS'S ANSWER THE GAIN OR LOSS MUST BE RECOGNIZED IN THE YEAR OF THE TRADE IN THE IRS'S EXAMPLE AN INVESTOR CALL HER ANNA PLACED A SALE ORDER LAST DEC 31 WITH A BROKER WE WILL CALL TERI WHO EXECUTED THE TRADE THAT DAY UNDER THE RULES OF WHAT WE WILL CALL THE RICH STOCK EXCHANGE ANNA DELIVERED SHARES TO TERI AND GOT THE SALE PROCEEDS ON JAN 8 THE SETTLEMENT DATE UNDER THE 1986 ACT THE IRS RULING SAYS THE TRANSACTION WASN'T AN INSTALLMENT SALE THE DISPOSITION AND ANNA'S GAIN OR LOSS HAD TO BE REPORTED AS OCCURRING ON THE TRADE DATE DEC THE NEW RULING MAKES OBSOLETE THREE OLDER ONES FROM 1970 1978 AND 1982 GIFTED DONORS SHOW HOW TO MAKE THE MOST OF GIVING APPRECIATED STOCK THE 1993 TAX ACT ENCOURAGES DONATIONS OF SECURITIES OWNED MORE THAN A YEAR YOU CAN DEDUCT THE CHARITABLE GIFT'S CURRENT VALUE WITHOUT PAYING CAPITALGAINS TAX ON ANY GROWTH IN VALUE AS BEFORE BUT THE ACT HAS REMOVED THE THREAT THAT THE APPRECIATION MIGHT FALL UNDER THE DREADED ALTERNATIVE MINIMUM TAX BUT WHAT IF YOU WANT TO DONATE A STOCK YET HOLD IT FOR MORE GAIN A SOPHISTICATED AND AFFLUENT INVESTOR BUYS MORE OF THAT STOCK AT THE TIME OF A GIFT SAYS DAVID BERENSON OF BERENSON & CO CPAS THUS THE DONOR STEPS UP THE COST BASIS OF THE RETAINED INVESTMENT TO THE LEVEL OF THE GIFT AND REDUCES ANY FUTURE TAXABLE GAIN A DONOR COULD GIVE AND DEDUCT 5000 OF STOCK BOUGHT TWO YEARS BEFORE FOR 1000 AND THAT DAY BUY AN EQUAL AMOUNT OF THAT STOCK TO CREATE A NEW 5000 BASIS FOR THE INVESTMENT BERENSON SUGGESTS THE RULE BARRING REPURCHASE WITHIN 30 DAYS OF STOCK DISPOSED OF AT A LOSS DOESN'T APPLY TO A GAIN SHAKING HANDS WITH ONESELF IS NO ARM'SLENGTH DEAL THE TAX COURT FINDS GEORGE E SEREDNESKY WAS THE SOLE OWNER OF SOCIAL PSYCHOLOGICAL SERVICES INC OF COLUMBUS OHIO HE RENTED OFFICE SPACE PERSONALLY FROM A THIRD PARTY WITHOUT A LEASE AND SUBLET IT TO HIS COMPANY IN 1988 SEREDNESKY PAID RENT OF 8000 FOR THE SPACE AND COLLECTED 16604 FROM THE COMPANY IN 1989 HE PAID RENT OF 16000 AND COLLECTED 20000 THE COMPANY DEDUCTED ITS PAYMENTS TO HIM AS AN ORDINARY BUSINESS COST BUT THE IRS SAID THE PAYMENTS WERE EXCESSIVE THE COMPANY APPEALED TO THE COURT AND SEREDNESKY TESTIFIED THAT THE 12604 DIFFERENCE IN RENTS CAME FROM HIS DESIRE TO AMASS A RESERVE FOR FUTURE RENT INCREASES AND FROM UNSPECIFIED IMPROVEMENTS HE MADE TO THE OFFICE BUT SPECIAL JUDGE GUSSIS FOUND THAT TESTIMONY SINGULARLY UNPERSUASIVE AND SAID THE ONLY RELIABLE EVIDENCE OF A REASONABLE RENT BASED ON ARM'SLENGTH DEALING WAS WHAT SEREDNESKY PAID TO THE THIRD PARTY SO THE JUDGE LIMITED THE COMPANY'S RENT DEDUCTIONS TO THOSE AMOUNTS SIX HOT SEATS ON THE HOUSE WAYS AND MEANS COMMITTEE WILL BE UP FOR GRABS AFTER THE 1994 ELECTIONS REPS PICKLE D TEXAS AND KOPETSKI D ORE WILL RETIRE AFTER CONGRESS'S 1994 SESSION ANDREWS D TEXAS AND SANTORUM R PA SEEK SENATE SEATS GRANDY R IOWA AND SUNDQUIST R TENN ARE GOING AFTER GOVERNORSHIPS LUCKY POSTAL WORKERS WILL DELIVER 22 MILLION IRS POSTCARDS INSTEAD OF 1993RETURN PACKAGES TO FILERS WHO HIRED PREPARERS TO DO 1992 RETURNS RECIPIENTS CAN FORWARD THE PREPRINTED ID LABELS TO PREPARERS OR ORDER FORMS FOR THEMSELVES BY RETURNING PART OF THE CARD SENDING 11 MILLION CARDS LAST TIME SAVED THE IRS 14 MILLION IT'S ROCKY IN PHILADELPHIA IT AND PITTSBURGH HAVE THE HIGHEST COMBINED CITY COUNTY STATE AND FEDERAL TAXES ON BUSINESS IN THE US ACCORDING TO A STUDY OF THE TOP 25 CITIES BY VERTEX INC BERWYN PA SEATTLE RANKED THIRD AND ATLANTA 25TH THE INTEREST RATE CHARGED ON OVERDUE TAXES WILL REMAIN 7 IN THE FIRST 1994 QUARTER IRS REVENUE RULING 9394 SAYS THE RATE PAID ON OVERDUE REFUNDS STAYS AT 6 PETER PIPER'S PICKING AND PACKING COSTS ARE DEDUCTIBLE FORTHWITH CPAS ARGUE THE AMERICAN INSTITUTE OF CPAS IS URGING THE IRS TO DROP A PROPOSED RULE THAT WOULD BLOCK DEDUCTIONS AS INCURRED OF THE COSTS OF ASSEMBLING SHIPMENTS TO FILL CUSTOMER ORDERS THE RULE MAINLY HITS MANUFACTURERS AND WHOLESALERS AND SAYS PICK PACK AND SHIP COSTS MUST BE CAPITALIZED CONCERNS USING A POPULAR COSTACCOUNTING METHOD BASED ON INVENTORY TURNOVER WOULD HAVE TO DEFER INDEFINITELY THE DEDUCTION OF MUCH OF THESE COSTS SAYS MICHAEL FRANKEL OF KPMG PEAT MARWICK AND THE AICPA THE LOSS OF THE DEDUCTIONS WOULD CUT INTO VITAL CASH FLOW THE COSTS AT ISSUE ARE THOSE OF PROCESSING AN ORDER PICKING OUT PACKING AND GATHERING THE GOODS ORDERED AND LOADING AND SHIPPING THEM THESE ARE DISTRIBUTION COSTS AND DEDUCTIBLE CURRENTLY UNDER THE TAX LAW THAT THE IRS RULE IS MEANT TO INTERPRET THE AICPA CONTENDS BUT COSTS OF HANDLING INVENTORY GOODS BEFORE ORDERS FOR THEM ARRIVE SHOULD BE CAPITALIZED THE AICPA ADDS BRIEFS THE DEPARTING STAFF CHIEF OF CONGRESS'S JOINT TAX COMMITTEE HARRY L GUTMAN WILL JOIN THE WASHINGTON OFFICE OF THE ATLANTABASED LAW FIRM KING & SPALDING THE US'S NEW TAX TREATY WITH RUSSIA ENTERED INTO FORCE WHEN VICE PRESIDENT GORE EXCHANGED DOCUMENTS IN MOSCOW LAST WEEK 9312220037 931222 EXCERPTS FROM THE CLINTON INTERVIEW HERE ARE SOME EXCERPTS FROM A WALL STREET JOURNAL INTERVIEW WITH PRESIDENT CLINTON ON DEC 15 WSJ IS THERE A NASTINESS ABOUT THE WASHINGTON CULTURE THAT HAS A CORROSIVE EFFECT ON PEOPLE PRESIDENT CLINTON YES I THINK THE SHORT ANSWER IS YES WSJ WHAT IS IT PRESIDENT CLINTON I THINK THAT WE ARE SUFFERING FROM SOME SORT OF A 30YEAR I MEAN EVER SINCE THE KENNEDYS' ASSASSINATIONS GOING THROUGH VIETNAM AND WATERGATE AND ALL THAT AN ACCELERATING PACE OF SKEPTICISM ABOUT POLITICIANS AND THEN I THINK IN A FUNNY WAY THE EXPLOSION OF NEWS COVERAGE THAT SORT OF THE RANGE AND THE DEPTH OF IT SO THAT EVERYONE IS EXPOSED ALL THE TIME AND THERE'S NO DIVIDING LINE THAT'S CLEAR BETWEEN WHAT'S PRIVATE AND PUBLIC WHEN SOME EMERGENCY HAPPENS SOMEWHERE IN THE WORLD I CAN PROBABLY LOOK AT IT AND THERE'S A 50/50 CHANCE I CAN LOOK AT IT ON CNN QUICKER THAN I CAN GET A REPORT FROM THE STATE DEPARTMENT THAT HAS MADE A LOT OF PEOPLE IN THE NEWS BUSINESS AND MAYBE ESPECIALLY THE MAJOR NETWORK TELEVISION NEWS MORE PRONE TO GET INTO COMMENTARY AS OPPOSED TO JUST SORT OF HERE'S WHAT HAPPENED TODAY' ON THE ASSUMPTION THAT YOU ALREADY KNOW WHAT HAPPENED TODAY WSJ IS THAT BAD PRESIDENT CLINTON NOT NECESSARILY BUT I THINK THE CUMULATIVE IMPACT OF ALL OF IT IS TO MAKE THE ENVIRONMENT LESS RESTRAINED AND MORE NEGATIVE IN ITS COMMENT AND IT PLAYS INTO THE FACT THAT PEOPLE HAVE BECOME MORE CYNICAL ABOUT THE POLITICAL SYSTEM AND IT PLAYS INTO THE FACT THAT THE CAPITALS ARE OFTEN VERY MEAN TOWNS WHERE PEOPLE ARE STRUGGLING MORE FOR POWER THAN FOR PRINCIPLE WSJ THE FIRST HALF OF THE YEAR WAS PRETTY DIFFICULT FOR YOU WHAT DID YOU LEARN PRESIDENT CLINTON IT JUST TOOK US A WHILE TO GET ORGANIZED GET OUR PROGRAM UNDER WAY AND KIND OF GET THE KINKS WORKED OUT OF HOW WE WERE OPERATING SECONDLY I THINK THAT WE MADE A DECISION THAT ADMINISTRATIONS DON'T OFTEN MAKE I MEAN WE DECIDED THAT WE WOULD START HARD AND CHARGE HARD AND REALLY TRY TO DO A LOT OF VERY CLEAR THINGS WSJ IN THE WALL STREET JOURNAL/NBC NEWS POLL MORE PEOPLE SAID WASHINGTON HAD CHANGED YOU THAN SAID YOU HAD CHANGED WASHINGTON WHY DO YOU THINK THAT'S SO PRESIDENT CLINTON PEOPLE ARE DEEPLY SKEPTICAL THAT ANYBODY CAN CHANGE WASHINGTON BECAUSE THERE IS A GREAT DEAL OF FOCUS WHEN I'M IN ANY KIND OF A BIG FIGHT ON THE PROCESS NOT DID YOU PASS THE BRADY BILL' BUT HOW WAS THE BRADY BILL CHANGED AND DID THE PRESIDENT MAKE ANY DEALS ABOUT ANYTHING ELSE AND OF COURSE THERE WAS AN ENORMOUS AMOUNT OF THAT ON THE NAFTA THING SECONDLY THERE IS THE FACT THAT I HAVE NOT SIGNED THE POLITICALREFORM BILLS WHICH I ADVOCATED IN THE PRESIDENTIAL CAMPAIGN CAMPAIGNFINANCE REFORM LOBBYING REFORM AND THE LINEITEM VETO BUT IT'S NOT ALL BAD IF WASHINGTON HAS CHANGED ME SOME I THINK THAT IT'S CHANGED ME SOME BUT I THINK THAT WE CHANGED THE CITY I THINK WE'VE PLAINLY GIVEN PEOPLE A SENSE THAT WE CAN MOVE HERE THAT WE CAN DO THINGS THAT ARE VERY VERY DIFFICULT WSJ WHY DO YOU THINK WASHINGTON IS SO RESISTANT TO CHANGE PRESIDENT CLINTON WE HAVE MADE A LOT OF CHANGES THAT WILL AFFECT THE LIVES OF THE PEOPLE IN THE COUNTRY SINCE I'VE BEEN HERE AND I'M GRATIFIED FOR THAT BUT I THINK THAT THE KIND OF POLITICAL REFORM THAT I WOULD LIKE TO SEE HAS PROVED TO BE MORE DIFFICULT THE EXPLOSION OF SUBCOMMITTEES AND STAFF AND ALL OF THAT HAS TENDED TO OVERLY SPECIALIZE ALMOST BALKANIZE A LOT OF CONGRESSIONAL DECISIONMAKING SO I JUST THINK THAT NEXT YEAR THERE'S GOING TO HAVE TO BE SOME MORE ATTENTION PAID TO SOME OF THESE SYSTEMATIC REFORM ISSUES SEE RELATED ARTICLE OBSTACLE COURSE PRESIDENT'S GOALS MEET WASHINGTON'S WAYS AND HE HAS TO ADAPT CLINTON LEARNS TO CUT DEALS COURT THE MIGHTY TO WIN SOME FIRSTYEAR CHANGE LAMENTING RISE IN CYNICISM WSJ DEC 22 1993 9312220036 931222 UAL'S TOP OFFICERS STAND TO RECEIVE OVER 45 MILLION IF BUYOUT IS CLEARED BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UAL CORP'S TOP TWO OFFICERS STAND TO RECEIVE PACKAGES OF CASH NOTES AND SECURITIES VALUED AT A TOTAL OF MORE THAN 45 MILLION IF THE PROPOSED UNION BUYOUT OF A MAJORITY STAKE IN THE COMPANY IS APPROVED TODAY UAL'S BOARD IS SCHEDULED TO MEET IN NEW YORK TODAY TO CONSIDER A 5 BILLION OR 173 A SHARE PROPOSAL FROM ITS TWO MAIN UNIONS TO ACQUIRE A MAJORITY STAKE IN THE PARENT OF UNITED AIRLINES THE STOCK MARKET SO FAR HAS BEEN UNENTHUSIASTIC ABOUT THE PLAN WITH UAL SHARES TRADING WELL BELOW 173 SINCE THE PROPOSAL WAS ANNOUNCED LAST WEEK IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY UAL STOCK ROSE 875 CENTS TO 14425 STEPHEN M WOLF UAL CHAIRMAN AND CHIEF EXECUTIVE OFFICER WOULD BE ELIGIBLE TO RECEIVE FOR COMPANY STOCK AND OPTIONS HE ALREADY HOLDS A TOTAL OF 289 MILLION IN CASH STOCK AND NOTES THAT IS BASED ON AN ANALYSIS OF UAL PROXY MATERIALS BY ROBERT SALWEN A PRINCIPAL OF COMPENSATION CONSULTANTS WILLIAM M MERCER INC IN NEW YORK JOHN C POPE UAL'S PRESIDENT AND CHIEF OPERATING OFFICER MEANWHILE COULD RECEIVE FOR HIS STOCK AND OPTIONS 163 MILLION IN CASH STOCK AND NOTES MR SALWEN ESTIMATED A UAL SPOKESMAN DISPUTED THE FIGURES FOR MR WOLF BUT NOT THOSE FOR MR POPE HE SAID A FAIRER ANALYSIS SHOWS THAT MR WOLF IS ELIGIBLE TO RECEIVE ABOUT 15 MILLION IN STOCK AND OPTIONS FROM THE TRANSACTION THAT ACCORDING THE COMPANY'S COUNT INCLUDES ONLY RESTRICTED SHARES WHOSE VESTING WOULD BE ACCELERATED AS A DIRECT RESULT OF THE TRANSACTION HE SAID THE SPOKESMAN DID HOWEVER ACKNOWLEDGE THAT IN THAT APPROACH THE COMPANY IS EXCLUDING SOME 65000 SHARES THAT MR WOLF ALREADY OWNS THE UNIONS HAVE SELECTED GERALD GREENWALD FORMER VICE CHAIRMAN OF CHRYSLER CORP TO SUCCEED MR WOLF IF THEIR BUYOUT PLAN PROCEEDS MESSRS WOLF AND POPE ARE EXPECTED TO LEAVE IF THE UNIONS GAIN CONTROL OF THE COMPANY ACCORDING TO FILINGS THIS SUMMER WITH THE SECURITIES AND EXCHANGE COMMISSION UAL'S 40 OFFICERS WOULD BE ELIGIBLE FOR GOLDEN PARACHUTES IF CONTROL OF THE COMPANY CHANGED AND THEY LOST THEIR JOBS THEY WOULD GET LUMPSUM SEVERANCE PAYMENTS OF THREE YEARS' SALARY PLUS BONUSES BASED ON AVERAGES OF PREVIOUS BONUSES FOR MR WOLF WHOSE ANNUAL SALARY IS 575000 THE GOLDEN PARACHUTE WOULD TRANSLATE INTO AN ADDITIONAL PAYMENT OF 17 MILLION MR POPE WITH AN ANNUAL SALARY OF 500000 WOULD BE ELIGIBLE FOR AN ADDITIONAL 15 MILLION IN 1989 MESSRS WOLF AND POPE BOTH UAL DIRECTORS WERE CRITICIZED BY EMPLOYEE GROUPS OVER THE PROFITS THE TWO STOOD TO GAIN FROM A 679 BILLION MANAGEMENTLED TAKEOVER PROPOSAL THE TWO OFFICERS WOULD HAVE RECEIVED A TOTAL OF MORE THAN 100 MILLION IN THE BUYOUT THROUGH STOCK AND OPTIONS THEY HELD EVEN THOUGH THEIR PROPOSAL CALLED FOR MANAGEMENT TO PUT UP ONLY ABOUT 15 MILLION OF ITS OWN FUNDS THAT TRANSACTION COLLAPSED IN OCTOBER 1989 AFTER THE GROUPS FAILED TO SECURE FINANCING HOWEVER SOME LARGE INSTITUTIONAL SHAREHOLDERS VIEW POSITIVELY MR WOLF'S TRACK RECORD AND HIS LARGE STAKE IN THE LATEST BUYOUT TRANSACTION AFTER JOINING THE AIRLINE IN 1987 MR WOLF PUSHED A GLOBAL EXPANSION PROGRAM THAT HAS POSITIONED UNITED TO CAPITALIZE ON FASTGROWING INTERNATIONAL ROUTES BETTER THAN MOST INDUSTRY RIVALS DURING MR WOLF'S TENURE UNITED EXPANDED TO 33 FROM 13 THE NUMBER OF COUNTRIES IT FLIES TO AND BUILT UP THE CARRIER'S FLEET TO 548 AIRCRAFT FROM 382 MR WOLF HAS SHOWN A DEDICATION TO THE SHAREHOLDER AND HE'S GOT A BIG VESTED INTEREST IN THE LATEST BUYOUT TRANSACTION SAID KEN HEEBNER PORTFOLIO MANAGER OF CAPITAL GROWTH MANAGEMENT LP A BOSTON INVESTMENT COMPANY THAT HOLDS ABOUT 6 OF UAL'S SHARES THE PILOTS AND MACHINISTS UNIONS SUBMITTED THE LATEST PROPOSAL LAST WEEK OFFERING MORE THAN 35 BILLION IN WAGE AND WORKRULE CONCESSIONS AS THE PRIMARY VEHICLE FOR FINANCING THE DEAL IN THE OFFER EXISTING HOLDERS OF UAL STOCK WOULD RECEIVE FOR EACH OF THEIR SHARES ABOUT 25 IN CASH AND ABOUT 31 IN PREFERRED STOCK AND 31 IN SENIOR NOTES THEY ALSO WOULD RECEIVE ONE SHARE OF NEWLY ISSUED UAL COMMON STOCK THE TOTAL PERSHARE VALUE OF THE PACKAGE IS 173 MR WOLF'S PACKAGE OF CASH AND SECURITIES WOULD BE VALUED AT 165 MILLION FOR THE ROUGHLY 95000 UAL SHARES HE BENEFICIALLY OWNS AND ABOUT 124 MILLION FOR HIS OPTIONS ACCORDING TO MERCER'S MR SALWEN EXCLUDED FROM THE CALCULATION ARE SOME 100000 OPTIONS THAT ARE EXERCISABLE ABOVE THE 173 PRICE OF THE PROPOSAL THE UAL SPOKESMAN NOTED THAT MR WOLF'S HOLDINGS INCLUDE 20000 SHARES HE PURCHASED AT PRICES AVERAGING 150 EACH FOR A TOTAL COST OF ABOUT 3 MILLION MR POPE'S PACKAGE OF CASH AND SECURITIES WOULD BE VALUED AT ABOUT 39 MILLION FOR THE 22528 SHARES HE BENEFICIALLY OWNS AND ABOUT 124 MILLION FOR HIS OPTIONS MR SALWEN SAID EXCLUDED ARE 20000 OPTIONS THAT MR POPE COULD EXERCISE ABOVE THE 173 PROPOSAL PRICE SEPARATELY IN WASHINGTON UNION OFFICIALS YESTERDAY OFFERED REPORTERS SOME DETAILS ON THEIR PLANS FOR A REVAMPED UNITED WHICH INCLUDES FORMING A NEW LOWCOST CARRIER CODENAMED U2 ROGER HALL CHAIRMAN OF THE MASTER EXECUTIVE COUNCIL OF UNITED'S PILOTS UNION SAID UNITED'S NEW SHORTHAUL CARRIER WOULD OFFER UNITED FREQUENTFLYER MILES GIVING IT AN EDGE OVER SOUTHWEST AIRLINES AND OTHER LOWCOST CARRIERS PILOTS AT BOTH UNITED AND U2 WOULD TAKE PAY CUTS OF ABOUT 15 MR HALL SAID PILOTS AT U2 WHICH WOULD FLY ROUTES OF NO MORE THAN 750 MILES WOULD RECEIVE MORE DAYS OFF MORE FREE TIME HE ADDED ABOUT 15 TO 20 OF UNITED'S 8200 PILOTS WOULD WORK FOR THE STARTUP AIRLINE HE SAID IF THE BOARD AND UAL SHAREHOLDERS APPROVE THE PLAN THE PILOTS AND MACHINISTS UNIONS WOULD THEN EXPLAIN THE ACCORD TO THEIR MEMBERS RATIFICATION BY THE MACHINISTS UNION WOULD BE DONE IN A STRAIGHT MAJORITY VOTE BY THE END OF JANUARY THE PILOTS EXECUTIVE COUNCIL HAS THE POWER TO APPROVE SUCH AN ACCORD ON BEHALF OF MEMBERS MR HALL SAID HE HOPES THE TRANSACTION CAN BE COMPLETED IN MAY UNITED WOULD THEN BE MAJORITYOWNED BY ITS EMPLOYEES ABOUT HALF OF WHOM ARE MEMBERS IN THE PILOTS AND MACHINISTS UNIONS THE 12MEMBER BOARD OF DIRECTORS WOULD CONSIST OF THREE REPRESENTATIVES PICKED BY LABOR FIVE OUTSIDE DIRECTORS AND FOUR OTHERS SELECTED BY THE UNIONS AND RATIFIED BY THE OUTSIDE DIRECTORS BOTH UNIONS CALLED EARLY RESPONSE FROM THEIR MEMBERS POSITIVE MACHINISTS AIRLINE COORDINATOR BILL SCHERI CALLED THE PACT A GOOD DEAL FOR THE SHAREHOLDERS 9312220035 931222 WHO'S NEWS UNIVERSITY PATENTS INC UNIVERSITY PATENTS INC WESTPORT CONN GEORGE M STADLER 46 YEARS OLD FORMERLY PRESIDENT AND CHIEF OPERATING OFFICER OF THIS TECHNOLOGY TRANSFER COMPANY WAS NAMED CHIEF EXECUTIVE OFFICER SUCCEEDING A SIDNEY ALPERT 55 WHO RESIGNED BUT REMAINS A DIRECTOR AND BECOMES A CONSULTANT TO THE COMPANY MR STADLER CONTINUES AS PRESIDENT AND WAS ALSO ELECTED A DIRECTOR FILLING A VACANCY ON THE EIGHTMEMBER BOARD 9312220034 931222 NEW YORK MTA TO RENOVATE GRAND CENTRAL TERMINAL NEW YORK THE NEW YORK METROPOLITAN TRANSPORTATION AUTHORITY SAID IT WOULD UNDERTAKE A 100 MILLION RESTORATION OF GRAND CENTRAL TERMINAL THE RENOVATION WOULD LAST THREE TO FOUR YEARS AND INCLUDE NEW RETAIL SPACE AND A RENOVATION OF THE STRUCTURE'S INTERIOR AND EXTERIOR IN A RELATED ANNOUNCEMENT PENN CENTRAL CORP WHICH OWNS GRAND CENTRAL SAID IT HAS AGREED TO EXTEND THE TERMS OF A LEASE ON THE RAILROAD STATION HELD BY THE MTA THE LEASE WHICH ALSO INCLUDES THE HARLEM AND HUDSON COMMUTER RAIL LINES WILL BE EXTENDED TO THE YEAR 2274 FROM THE YEAR 2032 THE MTA WILL ALSO BE GRANTED AN OPTION TO PURCHASE THE LEASED PROPERTY IN 25 YEARS PENN CENTRAL WOULD RELINQUISH ITS RIGHT TO CONSTRUCT AN OFFICE BUILDING OVER THE TERMINAL PENN CENTRAL IS A CINCINNATI SPECIALTY PROPERTY AND CASUALTY INSURANCE COMPANY IT EXPECTS TO RECEIVE 5 MILLION WHEN THE DEAL CLOSES AND SAID THE TOTAL VALUE OF THE AGREEMENT IS 55 MILLION 9312220033 931222 WHAT'S NEWS WORLDWIDE CLINTON MAY SEEK THE ELIMINATION OF 800 MILLION IN MASSTRANSIT SUBSIDIES THE PRESIDENT IS WEIGHING A FISCAL 1995 BUDGET THAT WOULD ELIMINATE THE ANNUAL SUBSIDIES AND PROBABLY FORCE SOME URBAN TRANSIT SYSTEMS TO CUT SERVICE THE PROPOSAL COULD SPARK AN OUTCRY FROM SMALL CITIES WHERE BUS SYSTEMS RELY ON FEDERAL GRANTS FOR 20 OR MORE OF THEIR BUDGETS CLINTON IS CONSIDERING PHASING OUT THE SUBSIDIES OVER THREE YEARS THOUGH HE IS LIKELY TO SUPPORT CONTINUATION OF GRANTS FOR THE PURCHASE OF EQUIPMENT NEW YORK CITY WHICH AT 132 MILLION A YEAR IS THE LARGEST RECIPIENT OF OPERATING FUNDS WOULD LOSE 2 OF ITS OPERATING BUDGET LOS ANGELES AND CHICAGO ARE THE NEXTLARGEST RECIPIENTS POSTAL SERVICE EXECUTIVES ARE WEIGHING A POSSIBLE 103 ACROSSTHEBOARD BOOST IN MAILING RATES A MOVE THAT WOULD RAISE THE COST OF SENDING A TYPICAL FIRSTCLASS LETTER TO 32 CENTS OFFICIALS SAID THE INCREASE WHICH WOULDN'T GO INTO EFFECT UNTIL 1995 COULD BE PROPOSED TO THE AGENCY'S BOARD OF DIRECTORS NEXT MONTH YELTSIN ABRUPTLY DISSOLVED RUSSIA'S POWERFUL SECURITY MINISTRY SAYING THE SUCCESSOR TO THE KGB SECRET POLICE FAILED TO WARN HIM OF DANGEROUS POLITICAL CURRENTS THE PRESIDENT'S HARSHLY WORDED DECREE WAS HIS FIRST MAJOR MOVE IN RESPONSE TO THE STRONG SHOWING BY EXTREME NATIONALISTS IN DEC 12 ELECTIONS SERBS AND CROATS OFFERED TO CEDE SOME CAPTURED TERRITORY TO BOSNIA'S MUSLIMS BUT THE MUSLIMLED GOVERNMENT REJECTED THE PROPOSAL THE DEVELOPMENT WHICH CAME ON THE OPENING DAY OF A NEW ROUND OF PEACE TALKS IN GENEVA CLOUDED MEDIATORS' HOPES FOR A PEACE SETTLEMENT BY CHRISTMAS EXILED HAITIAN LEADER ARISTIDE REJECTED AN APPEAL BY DIPLOMATS THAT HE RECONSIDER HIS OPPOSITION TO TALKS WITH THE COUNTRY'S MILITARY OFFICIALS ACCORDING TO A STATEMENT RELEASED IN WASHINGTON MEANWHILE US OFFICIALS RAISED THE POSSIBILITY THAT AIR LINKS WITH HAITI MIGHT BE SUSPENDED IF THE MILITARY DOESN'T ALLOW ARISTIDE TO RETURN AUSTRALIA'S PARLIAMENT PASSED LEGISLATION ALLOWING ABORIGINES TO PRESS TERRITORIAL CLAIMS TO AS MUCH AS ONETENTH OF THE CONTINENT THE LAW RESTORES NATIVE LAND RIGHTS THAT WERE LOST TO COLONISTS IN THE LATE 1700S PRIME MINISTER KEATING FOUGHT HARD FOR THE MEASURE WHICH WAS OPPOSED BY MANY MINERS AND RANCHERS FBI DIRECTOR LOUIS FREEH SUSPENDED THE HEAD OF THE BUREAU'S NEW YORK OFFICE JAMES FOX FOR COMMENTING PUBLICLY ABOUT THE WORLD TRADE CENTER BOMBING CASE FOX SUSPENDED WITH PAY ON DEC 10 WAS SCHEDULED TO RETIRE JAN 3 HIS AGENTS HAD BEEN PRAISED BY CLINTON FOR QUICKLY APPREHENDING SUSPECTS IN THE FEB 26 BLAST A HOMELESS MAN WAS SENTENCED TO THREE YEARS' PROBATION FOR ACCIDENTALLY STARTING ONE OF THE FIRES THAT SWEPT THROUGH SOUTHERN CALIFORNIA IN OCTOBER THE MAN TOLD POLICE HE HAD LIGHTED A CAMPFIRE TO KEEP WARM AND THEN FLED WHEN THE FLAMES SPREAD THE RESULTING FIRE DESTROYED 123 HOMES IN ALTADENA AND CONTRIBUTED TO ONE DEATH SOUTH KOREA'S LEADER FIRED 12 CABINET MINISTERS INCLUDING HIS ECONOMIC PLANNING CHIEF AND AGRICULTURE MINISTER IN RESPONSE TO PUBLIC ANGER OVER SEOUL'S DECISION TO LIFT ITS BAN ON RICE IMPORTS FROM THE US AND OTHER NATIONS PRESIDENT KIM'S SHAKEUP OF THE 24MEMBER CABINET FOLLOWED HIS REPLACEMENT OF THE PRIME MINISTER LAST WEEK THE SOUTH AFRICAN GOVERNMENT SAID A DRAFT CONSTITUTION IT HAMMERED OUT WITH THE AFRICAN NATIONAL CONGRESS WOULD BE PASSED BY PARLIAMENT TODAY WITHOUT ANY AMENDMENTS REQUESTED BY BLACK AND WHITE OPPONENTS DURING TWO DAYS OF MEETINGS BUT THERE WAS SAID TO BE A SLIM POSSIBILITY THAT THE DOCUMENT COULD BE AMENDED LATER THE PLO WILL INSIST ON CONTROL OF BORDER CROSSINGS A KEY ISSUE IN IMPLEMENTING A SEPTEMBER SELFRULE AGREEMENT WITH ISRAEL DURING CURRENT MIDEAST PEACE TALKS IN FRANCE A PALESTINIAN OFFICIAL SAID ISRAEL HAS REFUSED TO LET THE PLO TAKE CONTROL OF THE CROSSINGS LEADING INTO THE GAZA STRIP AND THE WEST BANK TOWN OF JERICHO NINE MIDWESTERN STATES ARE RECEIVING 125 MILLION IN RELIEF FUNDS TO BE USED FOR HOUSING CONSTRUCTION LAND BUYOUTS LEVEE REPAIRS AND OTHER PROJECTS NECESSITATED BY SUMMER FLOODING THE GOVERNMENT SAID THE DISASTER FUNDS COME FROM HUD WHICH WAS GIVEN 200 MILLION IN EXTRA BLOCK GRANT MONEY BY CONGRESS THIS YEAR 9312220032 931222 ARTHUR ANDERSEN DECLARED BIGGEST ACCOUNTING FIRM ARTHUR ANDERSEN & CO HAS EDGED OUT KPMG PEAT MARWICK AS THE BIGGEST ACCOUNTING FIRM IN THE WORLD ACCORDING TO THE INTERNATIONAL ACCOUNTING BULLETIN IN LONDON THE NEWSLETTER SAID ANDERSEN THE BIGGEST US ACCOUNTING FIRM REPORTED INTERNATIONAL REVENUE OF 6017 BILLION FOR THE YEAR ENDED AUG 31 UP ALMOST 8 FROM A YEAR EARLIER ANDERSEN'S JUMP TO THE TOP INTERNATIONAL SPOT WAS HELPED BY THE MERGER OF ACCOUNTING FIRM ASAHI SHINWA & CO WITH INOUE SAITO EISA AUDIT CORP FORMERLY ANDERSEN'S ONLY MEMBER FIRM IN JAPAN THE MERGER TOOK PLACE EARLIER THIS YEAR PEAT MARWICK HAS PREVIOUSLY REPORTED WORLDWIDE REVENUE OF 6 BILLION FOR THE YEAR ENDED SEPT 30 DOWN 16 FROM A YEAR EARLIER THE STRONG DOLLAR DEPRESSED THE NONUS REVENUES OF MANY FIRMS SAID NIALL BRADY EDITOR OF THE INTERNATIONAL ACCOUNTING BULLETIN PEAT GENERATES 70 OF ITS BUSINESS OUTSIDE THE US HE NOTED PEAT MARWICK HAD BEEN THE BIGGEST WORLDWIDE ACCOUNTING FIRM SINCE ITS 1987 MERGER WITH MAIN HURDMAN A US FIRM THAT BELONGED TO AN INTERNATIONAL UMBRELLA ORGANIZATION WITH MANY CLIENTS IN EUROPE 9312220031 931222 WHO'S NEWS AUTOMOBILE PROTECTION CORP AUTOMOBILE PROTECTION CORP ATLANTA ANTHONY LEVINSON A BUSINESS CONSULTANT AND AUDITOR FOR PRICE WATERHOUSE WAS NAMED CHIEF FINANCIAL OFFICER OF THIS MARKETER OF SERVICES FOR AUTO DEALERS MR LEVINSON 36 YEARS OLD SUCCEEDS JOEL E MARKS WHO RESIGNED TO PURSUE OTHER BUSINESS INTERESTS MR MARKS 37 REMAINS A DIRECTOR 9312220030 931222 FBI'S FOX IS SUSPENDED FOR COMMENTING ON CASE WASHINGTON THE DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION SUSPENDED THE HEAD OF THE BUREAU'S NEW YORK OFFICE FOR COMMENTING PUBLICLY ABOUT A PENDING CASE FBI ASSISTANT DIRECTOR JAMES FOX WAS SUSPENDED DEC 10 FOR REMARKS HE MADE ABOUT THE WORLD TRADE CENTER BOMBING CASE ON A DEC 4 WPIXTV BROADCAST NEW YORK NEWSDAY REPORTED YESTERDAY HE HAD BEEN WARNED ABOUT GOING TOO FAR IN HIS COMMENTS ABOUT THE CASE TO THE PRESS MR FOX IS SCHEDULED TO RETIRE JAN 3 FOLLOWING 31 YEARS OF WHAT A BUREAU SPOKESMAN TERMED OUTSTANDING SERVICE THE ASSISTANT DIRECTOR HAD SAID EARLIER THAT HE PLANNED TO JOIN THE MUTUAL OF AMERICAN INSURANCE COMPANY IN A STATEMENT THE FBI SAID DIRECTOR LOUIS FREEH MADE THE DECISION TO PLACE ASSISTANT DIRECTOR FOX ON ADMINISTRATIVE LEAVE WITH PAY UNTIL HIS RETIREMENT IN JANUARY HE DID SO AFTER CAREFULLY REVIEWING INAPPROPRIATE PUBLIC COMMENTS FOX MADE ABOUT A PENDING PROSECUTION PRESIDENT CLINTON HAD PRAISED THE WORK OF THE AGENTS SUPERVISED BY MR FOX FOR QUICKLY APPREHENDING THE INDIVIDUALS SUSPECTED OF PARTICIPATING IN THE FEB 26 BOMBING OF THE WORLD TRADE CENTER 9312220029 931222 BUSINESS BRIEF ORACLE CORP FISCAL 2NDPERIOD EARNINGS ROSE 85 ON DATABASE SALES ORACLE CORP SAID BRISK SALES OF ITS DATABASE SOFTWARE BOOSTED FISCAL SECONDQUARTER NET INCOME 85 TO 621 MILLION OR 21 CENTS A SHARE FOR THE YEAREARLIER PERIOD THE REDWOOD CITY CALIF SOFTWARE MAKER REPORTED PROFIT OF 335 MILLION OR 11 CENTS A SHARE REVENUE ROSE 28 TO 4522 MILLION FROM 3532 MILLION THE PERIOD ENDED NOV 30 THE RESULTS WERE AT THE HIGH END OF ANALYSTS' EXPECTATIONS ACCORDING TO ZACK'S INVESTMENT RESEARCH INC WHICH SAID ANALYSTS' EXPECTATIONS FOR EARNINGS AVERAGED 19 CENTS A SHARE THE RESULTS WERE RELEASED AFTER THE CLOSE OF TRADING THE COMPANY SAID SOFTWARELICENSING REVENUE GREW 29 REVENUE FROM SUPPORT TRAINING AND OTHER SERVICES ROSE 36 9312220028 931222 GEPHARDT BIG NAFTA FOE SAYS HE'LL BACK GATT WASHINGTON HOUSE MAJORITY LEADER RICHARD GEPHARDT ONE OF THE STRONGEST OPPONENTS OF THE NORTH AMERICAN FREE TRADE AGREEMENT SAID HE WOULD BACK THE RECENTLY NEGOTIATED WORLDTRADE PACT MR GEPHARDT'S SUPPORT INCREASES THE ALREADY HEAVY ODDS THAT THE ACCORD NEGOTIATED UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE WILL WIN APPROVAL IN CONGRESS NEXT YEAR IN THE NAFTA FIGHT CORPORATE AMERICA LINED UP NEARLY UNANIMOUSLY FOR THE TRADE PACT WHILE ENVIRONMENTALISTS SPLIT ON THE ISSUE WITH THE GATT PACT ENVIRONMENTALISTS ARE UNITED IN THEIR OPPOSITION FEARING THE AGREEMENT WILL UNDERMINE US ENVIRONMENTAL LAWS AND SEVERAL PROMINENT INDUSTRIES SUCH AS TEXTILES OPPOSE THE AGREEMENT MR GEPHARDT'S EARLY BACKING OF THE PACT HOWEVER MAKES IT MORE DIFFICULT FOR GATT OPPONENTS TO RALLY SUPPORT MR GEPHARDT SAID HE WAS CONVINCED THAT THE ADMINISTRATION WOULD CONTINUE TO ACT UNILATERALLY TO PRESS JAPAN AND CHINA TO OPEN THEIR MARKETS PARTICULARLY IN AREAS NOT COVERED BY THE GATT ACCORD NEXT YEAR HE PLANS TO INTRODUCE LEGISLATION ENABLING THE ADMINISTRATION TO APPLY TRADE SANCTIONS AGAINST NATIONS THAT COMPETE UNFAIRLY THROUGH WEAKER ENVIRONMENTAL OR LABOR STANDARDS 9312220027 931222 WHAT'S NEWS BUSINESS AND FINANCE VIACOM ASKED PARAMOUNT FOR MORE TIME TO PUT TOGETHER A NEW OFFER TO COMPETE WITH A SWEETENED 10 BILLION BID BY QVC EVEN AS VIACOM MADE THE REQUEST PEOPLE CLOSE TO NYNEX INDICATED THE PHONE COMPANY WAS CLOSE TO AN AGREEMENT TO RAISE ITS 12 BILLION INVESTMENT IN VIACOM TO HELP IT BOLSTER ITS 96 BILLION OFFER MERGERS THAT INVOLVE STOCK SWAPS AMONG PUBLIC SHAREHOLDERS DON'T TRIGGER THE SORT OF CHANGE OF CORPORATE CONTROL THAT WOULD REQUIRE AN AUCTION A DELAWARE JUDGE RULED THE DECISION IS SIGNIFICANT BECAUSE IT ADDRESSES AN AMBIGUITY IN A RULING ON PARAMOUNT UAL'S TOP TWO OFFICERS STAND TO RECEIVE PACKAGES OF CASH NOTES AND SECURITIES VALUED AT MORE THAN 45 MILLION IF THE PROPOSED UNION BUYOUT OF A MAJORITY STAKE OF THE PARENT OF UNITED AIRLINES IS APPROVED TODAY CLINTON'S TAX INCREASE ON THE RICH POSES LITTLE THREAT TO THE ECONOMIC RECOVERY MAINSTREAM ECONOMISTS SAID THEY NOTED THAT UNLIKE BUSH'S TAX INCREASES WHICH HIT A SLOWING ECONOMY CLINTON'S COMES DURING AN EXPANSION COMPANIES EXPECT TO RAISE CAPITAL SPENDING 54 IN 1994 FOLLOWING A 7 RISE THIS YEAR A SURVEY SAID A PRITZKERLED INVESTMENT GROUP WITHDREW FROM THE BIDDING PROCESS FOR AMERICA WEST AIRLINES WHICH IS SEEKING FRESH CAPITAL TO EMERGE FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS THE COMMODITY FUTURES TRADING COMMISSION SUSPENDED THREE TRADERS WHO RESUMED WORKING AT THE CBOT AND CHICAGO MERC DESPITE FELONY CONVICTIONS AFTER A US STING OPERATION TELECOMMUNICATIONS AND HOME SHOPPING NETWORK HAVE AGREED TO JOINTLY EXPAND HOME SHOPPING ABROAD IN A MOVE THAT SIGNALS AN ESCALATING RIVALRY BETWEEN HSN AND ITS FORMER MERGER PARTNER QVC NETWORK MERRILL LYNCH IS EXPECTED TO BE NAMED IN AN SEC ADMINISTRATIVE COMPLAINT ALLEGING MERRILL VIOLATED RECORDKEEPING REQUIREMENTS IN ITS TREASURY BOND AND JUNKBOND DEALINGS WITH A FLORIDA INSURER AND ANOTHER FIRM DOMINO'S PIZZA SAID IT WILL NO LONGER GUARANTEE DELIVERY OF PIZZAS WITHIN 30 MINUTES IN THE WAKE OF A 78 MILLION JURY AWARD TO A WOMAN INJURED BY A DOMINO'S DELIVERY DRIVER AETNA LIFE & CASUALTY WAS IMPROPERLY AWARDED A 35 BILLION DEPARTMENT OF DEFENSE MEDICAL CONTRACT THE GENERAL ACCOUNTING OFFICE RULED THE WHITE HOUSE WILL TRY TO REPLACE LAWS THAT ARE OBSTRUCTING NEW TELECOMMUNICATIONS SERVICES BUT WILL KEEP A REGULATORY SAFETY NET TO ENSURE THAT EVERYBODY CAN USE THE SERVICES THE PHILADELPHIA STOCK EXCHANGE REBUFFED A TAKEOVER BID BY RIVAL CHICAGO BOARD OPTIONS EXCHANGE ALTHOUGH NEARLY HALF ITS MEMBERS VOTED INFORMALLY TO CONTINUE TALKS BEIJING IS ORDERING CONTROLS ON RETAIL PRICES OF RICE PORK AND OTHER STAPLE FOODS AMID A PRICE SURGE THAT MIGHT DERAIL CHINA'S REFORM PLANS JAPAN UNVEILED DEREGULATORY MEASURES AIMED AT RESUSCITATING THE NATION'S AILING SECURITIES MARKETS SHORT INTEREST ON THE BIG BOARD EDGED UP 07 TO A RECORD LEVEL OF 124 BILLION SHARES IN MIDDECEMBER SHORT INTEREST IN MERCK PLUNGED BONDS LEHMAN BROTHERS TREASURY INDEX 550602 OFF 331 COMMODITIES OIL 1436 A BARREL OFF TWO CENTS DOW JONES FUTURES INDEX 14059 OFF 048 SPOT INDEX 12644 OFF 031 DOLLAR 11118 YEN UP 053 17103 MARKS OFF 00027 9312220026 931222 IRS RELAXES ITS DEADLINE FOR EXECUTIVEPAY GOALS WASHINGTON THE INTERNAL REVENUE SERVICE RELAXED THE PRESSURE ON CORPORATIONS TO SET EXECUTIVEPERFORMANCE GOALS BY DEC 31 TO ESCAPE THE NEW 1 MILLION CAP ON COMPENSATION EFFECTIVE JAN 1 THE 1993 TAX ACT GENERALLY BARS A PUBLIC CORPORATION FROM DEDUCTING COMPENSATION EXCEEDING 1 MILLION EACH FOR CERTAIN TOP OFFICERS HOWEVER THE LIMIT MAY BE AVOIDED IF THE PAY IS BASED ON PERFORMANCE STANDARDS THAT MEET STRICT TERMS THE IRS ISSUED RULES A WEEK AGO THAT WOULD HAVE REQUIRED COMMITTEES OF OUTSIDE DIRECTORS TO ESTABLISH WRITTEN GOALS FOR 1994 BEFORE THE YEAR BEGINS THE TIGHT DEADLINE PROMPTED CORPORATIONS TO BOMBARD THE IRS AND THE TREASURY WITH PLEAS FOR RELIEF LATE YESTERDAY THE IRS ANNOUNCED THAT ON CERTAIN CONDITIONS A GOAL ESTABLISHED BEFORE APRIL 1 FOR CALENDAR 1994 WILL BE TREATED AS HAVING BEEN IN EFFECT STARTING JAN 1 THE PERFORMANCE PERIOD MUST CONTINUE FOR AT LEAST NINE MONTHS 9312220025 931222 FINANCING BUSINESS PACIFIC PHYSICIAN SERVICES INC PACIFIC PHYSICIAN SERVICES INC REDLANDS CALIF SAID IT OFFERED 60 MILLION OF 5 1/2 CONVERTIBLE DEBENTURES DUE 2003 VIA FURMAN SELZ INC THE PREPAID HEALTHCARE MANAGEMENT CONCERN GRANTED THE UNDERWRITER AN OPTION TO BUY AN ADDITIONAL 9 MILLION OF THE DEBENTURES TO COVER OVERALLOTMENTS THE DEBENTURES ARE CONVERTIBLE INTO COMMON STOCK AT 29 A SHARE PROCEEDS ARE EXPECTED TO BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING POSSIBLE ACQUISITIONS 9312220023 931222 FOREIGN EXCHANGE YEN SINKS AS JAPAN'S TROUBLES GROW SWISS FRANC BENEFITS FROM THE FALLOUT BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK JAPAN'S MOUNTING POLITICAL AND ECONOMIC WOES CONTINUED TO HOUND THE YEN YESTERDAY DRAGGING THE CURRENCY LOWER ACROSS THE BOARD MUCH OF THE MONEY THAT BLED FROM THE YEN SEEPED INTO THE SWISS FRANC BOOSTING IT AGAINST THE DOLLAR AND THE MARK LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17103 MARKS DOWN FROM 17130 MARKS LATE MONDAY IN NEW YORK THE DOLLAR ALSO WAS CHANGING HANDS AT 11118 YEN UP FROM 11065 YEN STERLING TRADED AT 14880 UP FROM 14855 AT ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11075 YEN AND AT 17075 MARKS OVER THE PAST SEVERAL DAYS CONCERNS ABOUT THE WEAKNESS OF THE JAPANESE ECONOMY AND ABOUT THE POLITICAL WRANGLINGS THAT ARE HAMPERING THE GOVERNMENT'S ABILITY TO DEAL WITH THE PROBLEM HAVE SLOWLY BUT STEADILY UNDERCUT THE YEN AND AS SOME FRESH SOURCES OF CONCERN EMERGED AGAIN YESTERDAY INVESTORS VENTED THEIR FRUSTRATION BY CONTINUING TO SLAM THE YEN THE SALES OF YEN PUSHED THE DOLLAR HIGHER THROUGHOUT THE DAY EVENTUALLY BOOSTING IT THROUGH 111 YEN IN NORTH AMERICAN TRADING AND WITH TRADERS SEEING NO END IN SIGHT TO JAPAN'S PROBLEMS THE MARKET IS PREPARING FOR FURTHER YEN WEAKNESS IN THE DAYS TO COME SEVERAL ITEMS SET ALARM BELLS RINGING INCLUDING A DISMAL REPORT FROM THE BANK OF JAPAN WHICH OFFERED NO HOPE FOR AN ECONOMIC RECOVERY SOON JAPAN'S ECONOMIC PLANNING AGENCY ALSO REPORTED THAT ITS INDEX OF LEADING INDICATORS FELL AGAIN IN OCTOBER TO 30 WELL BELOW THE 50 LEVEL THAT WOULD SHOW A PICKUP IN ACTIVITY AHEAD BUT THE MARKET WAS ALSO WORRIED BY ALLEGATIONS OF YET ANOTHER BRIBERY SCANDAL INVOLVING A JAPANESE POLITICIAN WHICH SOME PLAYERS BELIEVE COULD FURTHER DELAY GOVERNMENT ACTION TO BOLSTER THE STRUGGLING ECONOMY ICHIRO OZAWA SECRETARYGENERAL OF THE JAPAN RENEWAL PARTY AND A KEY STRATEGIST IN PRIME MINISTER MORIHIRO HOSOKAWA'S SEVENPARTY COALITION GOVERNMENT WAS ACCUSED TUESDAY OF RECEIVING ONE MILLION YEN IN ILLEGAL DONATIONS FROM A CONSTRUCTION COMPANY MR OZAWA IS WIDELY BELIEVED TO BE AN IMPORTANT PLAYER IN HOLDING THE DIVERSE COALITION TOGETHER AND ANY SIGN OF HIS DEPARTURE WOULD BE TAKEN AS A BAD OMEN FOR THE STRUGGLING GOVERNMENT FURTHER HAMSTRINGING THE YEN WERE COMMENTS FROM US TREASURY SECRETARY LLOYD BENTSEN WHO SAID THAT HE DIDN'T SEE ANY NEED FOR THE US TO STEP IN TO KEEP THE YEN FROM FALLING TOO FAR AS PLAYERS MOVED OUT OF THE YEN THE SWISS FRANC WAS ONE OF THE MOST POPULAR DESTINATIONS FOR FUNDS THE FRANC ROSE STRONGLY AGAINST THE DOLLAR THE MARK AND THE YEN THE SWISS FRANC'S STRENGTH WAS DUE TO AMONG OTHER THINGS ITS ABILITY TO BREAK THROUGH A TECHNICAL LEVEL AGAINST THE MARK AND THE MARKET'S VIEW THAT SWISS INTEREST RATES ARE UNLIKELY TO DECLINE AS FAST AS GERMANY'S LAST WEEK THE SWISS NATIONAL BANK CUT ITS DISCOUNT RATE BY 025 PERCENTAGE POINT TO 40 IN WHAT TRADERS BELIEVE IS LIKELY TO BE THE LAST CUT IN SWISS RATES FOR SOME TIME GERMANY'S BUNDESBANK MEANWHILE IS EXPECTED TO MOVE RELATIVELY RAPIDLY IN 1994 TO LOWER ITS INTEREST RATES THE MARK ALSO DROPPED BELOW A KEY SUPPORT LEVEL AT 08500 SWISS FRANCS YESTERDAY TRIGGERING SOME STOPLOSS SALES OF MARKS WHICH DEPRESSED IT FOR THE REST OF THE DAY LATE IN NEW YORK THE MARK TRADED AT 08479 FRANCS DOWN FROM 08513 FRANCS MONDAY THE DOLLAR TRADED AT 14505 SWISS FRANCS LATE TUESDAY DOWN FROM 14580 FRANCS MONDAY SOME TRADERS SAID THE DOLLAR'S DECLINE AGAINST THE SWISS FRANC WAS ESPECIALLY TROUBLING BECAUSE MANY VIEW THE DOLLARFRANC RELATIONSHIP AS AN INDICATOR OF HOW THE DOLLAR WILL FARE AGAINST THE MARK FOR THE MOMENT ANYWAY TRADERS SAID THE DOLLAR IS STILL WELLSUPPORTED AT 17060 MARKS THE BOTTOM OF ITS CURRENT RANGE BUT DEALERS ADDED THAT THEY COULD SEE LITTLE ON THE HORIZON THAT COULD DRIVE THE DOLLAR MUCH ABOVE 17160 MARKS ELSEWHERE THE DANISH KRONE ROSE SLIGHTLY AGAINST THE MARK AFTER THE DANISH CENTRAL BANK LOWERED ITS KEY DISCOUNT RATE 025 PERCENTAGE POINT TO 625 LATE IN NEW YORK THE MARK TRADED AT 39048 KRONER DOWN FROM 39156 KRONER MONDAY 9312220022 931222 BUSINESS BRIEF CROSS TIMBERS OIL CO WORKING INTEREST IN FIELD IN TEXAS IS RAISED TO 915 CROSS TIMBERS OIL CO FORT WORTH TEXAS SAID IT INCREASED TO 915 ITS WORKING INTEREST IN AN OIL AND GASPRODUCING FIELD IN WEST TEXAS THROUGH TWO TRANSACTIONS VALUED AT 284 MILLION THE COMPANY HAD OWNED 489 OF THE FIELD KNOWN AS THE PRENTICE NORTHEAST UNIT LOCATED IN TERRY AND YOAKUM COUNTIES IN THE FIRST TRANSACTION CROSS TIMBERS SAID IT WILL ACQUIRE A 294 INTEREST FROM AN AMOCO CORP SUBSIDIARY SEPARATELY THE COMPANY ALSO BOUGHT A 132 WORKING INTEREST IN THE PRENTICE NORTHEAST UNIT AND INTERESTS IN OTHER PROPERTIES FROM A PRIVATE COMPANY IT WOULDN'T IDENTIFY EFFECTIVE LAST JULY 1 THE UNIT COVERS 6900 ACRES AND HAS 142 PRODUCING AND 116 WATERINJECTION WELLS CROSS TIMBERS SAID IT ESTIMATES THAT PROVEN RESERVES IN THE PURCHASES ARE 41 MILLION BARRELS OF CRUDE OIL AND CONDENSATE AND 11 BILLION CUBIC FEET OF NATURAL GAS THE COMPANY SAID IN A STATEMENT THAT IT WILL DEVOTE SUBSTANTIAL TECHNICAL AND FINANCIAL RESOURCES TO EXPLOIT THIS STRATEGIC PROPERTY CROSS TIMBERS ACQUIRES EXPLOITS AND DEVELOPS PRODUCING OIL AND GAS PROPERTIES 9312220021 931222 BUSINESS BRIEF FISHER SCIENTIFIC INTERNATIONAL INC CONCERN IS BUYING 2 UNITS TO MAKE ORGANIC CHEMICALS FISHER SCIENTIFIC INTERNATIONAL INC HAMPTON NH SAID IT PURCHASED THE ORGANIC CHEMICALS UNIT OF EASTMAN KODAK CO AND HAS ALSO AGREED TO BUY A BELGIAN UNIT OF JOHNSON & JOHNSON THAT MAKES ORGANIC CHEMICALS TERMS WEREN'T DISCLOSED FISHER SAID THE TWO BUSINESSES HAVE SALES OF ABOUT 35 MILLION FISHER SAID IT AGREED TO BUY JANSSEN CHEMICA A GEEL BELGIUM DIVISION OF JOHNSON & JOHNSON'S JANSSEN PHARMACEUTICA NV UNIT WHICH SUPPLIES MORE THAN 10000 PACKAGED AND BULK ORGANIC CHEMICALS THE FORMER KODAKOWNED BUSINESS SUPPLIES MORE THAN 5000 PACKAGED CHEMICALS FISHER MAKES SCIENTIFIC INSTRUMENTS AND CHEMICALS FOR RESEARCHERS 9312220020 931222 MARKETING BRIEF NEW YORK TIMES CO PRICE FOR HOME DELIVERY OF NEWSPAPER TO INCREASE NEW YORK TIMES CO SAID IT WILL INCREASE THE PRICE OF HOME DELIVERY OF THE NEW YORK TIMES NATIONWIDE AND THE WEEKDAY NEWSSTAND PRICE IN THE SOUTH PARTLY BECAUSE OF HIGHER PRODUCTION AND DISTRIBUTION COSTS BEGINNING JAN 3 WEEKLY DELIVERY IN THE NEW YORK METROPOLITAN AREA WILL INCREASE 11 TO 610 AND 16 IN THE NORTHEAST ON JAN 10 THE SUGGESTED WEEKDAY NEWSSTAND PRICE IN 11 SOUTHEAST AND SOUTHWEST STATES WILL RISE TO 1 FROM 75 CENTS THE CHANGES DON'T AFFECT THE WEEKDAY NEWSSTAND PRICE ELSEWHERE IN THE US OR THE SUNDAY NEWSSTAND PRICE 9312220019 931222 WORLD MARKETS STOCKS DROP IN TOKYO ON PERSISTENT ANXIETIES FALL IN LONDON AS PROFITTAKERS SNAP BULL RUN A WALL STREET JOURNAL NEWS ROUNDUP TOKYO EQUITIES LOST GROUND TUESDAY AMID PERSISTENT WORRIES ABOUT JAPAN'S ECONOMY AND POLITICAL SITUATION LONDON SHARES FELL TO FINISH AT THE DAY'S LOWS AFTER INVESTORS CAPTURED PROFITS FOLLOWING A RECENT RECORDBREAKING RUN BUT FRANKFURT STOCKS KEPT FLEXING THEIR MUSCLES THOUGH THE MARKET ENDED BELOW SESSION HIGHS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11014 DOWN 027 REFLECTING LOWER ASIA/PACIFIC AND AMERICAN MARKETS AND HIGHER EUROPEAN MARKETS AUTO MANUFACTURERS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13977 UP 094 OR 07 WITH ORIENTAL HOLDINGS OF MALAYSIA POSTING A 63 GAIN IN ITS LOCAL CURRENCY HOME CONSTRUCTION STOCKS TRAILED AT 13809 DOWN 320 OR 23 WITH HENDERSON LAND DEVELOPMENT OF HONG KONG SLIDING 59 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SKIDDED 64767 POINTS TUESDAY IN THIS YEAR'S STEEPEST POINT DROP FELL 8881 TO 1731543 ON WEDNESDAY THE NIKKEI FELL 1120 POINTS TO CLOSE THE MORNING SESSION AT 1730423 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 210 MILLION SHARES DOWN FROM A THIN 2351 MILLION SHARES A DAY EARLIER RETREATING ISSUES OUTNUMBERED ADVANCING ISSUES 676326 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH NOSEDIVED 4322 POINTS MONDAY DECLINED 152 TO 144573 DURING A MERE 10MINUTE PERIOD IN MORNING TRADING SHARE PRICES PLUNGED 17 AFTER JAPAN'S FINANCE MINISTER AND ITS CHIEF ECONOMIC PLANNER SAID SEPARATELY THAT NEW STEPS TO BOOST THE WEAK ECONOMY ARE UNLIKELY TO TAKE THE FORM OF A COMPREHENSIVE PACKAGE BUT STOCKS RECOVERED THROUGHOUT THE AFTERNOON ON BUYING BY ARBITRAGERS THOUGH FRESH INCENTIVES DIDN'T MATERIALIZE TO SPUR THE BROADER MARKET ACTIVITY WAS LIGHT BECAUSE MANY INVESTORS WITHDREW AHEAD OF JAPANESE HOLIDAYS AND THE PROSPECT OF A SNAP ELECTION FOR THE DIET OR PARLIAMENT WHICH WOULD PROBABLY DELAY ANY ECONOMIC STIMULUS CONTINUED TO WEIGH ON SENTIMENT AFTER THE MARKET CLOSED A GOVERNMENT AIDE SAID JAPAN'S GOVERNING COALITION WILL AIM TO HAVE THE DIET'S UPPER HOUSE HOLD THE KEY VOTE ON THE ADMINISTRATION'S POLITICALREFORM BILLS BY JAN 14 PRIME MINISTER MORIHIRO HOSOKAWA HAS STAKED HIS POLITICAL LIFE ON ENACTMENT OF REFORM LEGISLATION AND FINANCIAL MARKETS ARE NERVOUS THAT ANY HITCH WOULD DELAY OR EVEN DERAIL ECONOMIC STIMULUS MEASURES SUCH AS ANOTHER SUPPLEMENTARY BUDGET MEANWHILE JAPAN UNVEILED DEREGULATORY MEASURES INTENDED TO HELP SECURITIES MARKETS THOUGH ANALYSTS SAID THIS WON'T PRODUCE A QUICK FIX THE PROPOSALS RANGE FROM LIFTING A BAN ON NEW STOCK ISSUES BY LISTED COMPANIES TO ALLOWING COMPANIES THAT SELL EUROYEN BONDS A WAIVER TO ALLOW IMMEDIATE TRADING OF THEM IN JAPAN IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 225 POINTS TO 33424 JUST ABOVE THE SESSION LOW OF 33399 THE FT 30STOCK INDEX FELL 82 POINTS TO 25087 VOLUME WAS 7561 MILLION SHARES COMPARED WITH 7489 MILLION SHARES A DAY EARLIER THE CORRECTION FROM RECORD TERRITORY WASN'T A SURPRISE PARTICULARLY AS THE LONDON MARKET LOST A MAJOR SOURCE OF SUPPORT WITH INSTITUTIONAL INVESTORS BEGINNING TO TONE DOWN THEIR RECENT AGGRESSIVE PURCHASES WITH THE YEAREND HOLIDAYS APPROACHING THUS STOCKS FAILED IN AN EARLY ATTEMPT TO EXTEND THEIR GAINS AND RAN INTO PROFITTAKING THE BOURSE ALSO WAS LED BY THE FUTURES MARKET WHICH SUCCUMBED TO PROFITTAKING TOO AND AN EARLY DROP ON WALL STREET PROVIDED FURTHER INCENTIVES IN LONDON TO SELL WATER AND BANKING COMPANIES WHICH HAD RALLIED RECENTLY WERE HIT HARDEST IN FRANKFURT THE DAX 30STOCK INDEX ROSE 477 POINTS TO A RECORD 218293 AS THE RALLY THAT BEGAN LAST THURSDAY CONTINUED THOUGH SHARES ENDED WELL BELOW INTRADAY HIGHS THE INDEX IS UP 3191 POINTS FOR THIS WEEK THE MARKET IS BULLISH BECAUSE GERMAN INVESTMENT PORTFOLIOS ARE OVERWHELMINGLY BASED ON BONDS AND WITH GERMAN INTEREST RATES DROPPING BONDHOLDERS HAVE LITTLE INCENTIVE TO REINVEST THOSE PROCEEDS BACK INTO THE BOND MARKET IN PARIS STOCKS SLIPPED IN A CORRECTION FOLLOWING TWO RALLIES AS INVESTORS TOOK SOME PROFITS WHILE MAINTAINING BULLISHNESS ABOUT NEXT YEAR'S ECONOMIC OUTLOOK IN AMSTERDAM THE UNDERLYING TONE ALSO REMAINED POSITIVE THOUGH TURNOVER WAS THIN AND SHARES DECLINED WITH PROFITTAKERS CLIPPING GAINS AFTER LONDON AND NEW YORK PRICES WEAKENED IN MILAN EQUITIES ADVANCED IN REACTION TO A PROVISIONAL REPORT THAT ITALIAN INFLATION WAS AT ITS LOWEST LEVEL IN TWO DECADES AND TO EXPECTED APPROVAL OF THE GOVERNMENT BUDGET THIS WEEK TWO CORPORATE RIGHTS ISSUES ALSO WERE WELL RECEIVED SUPPORTING THE BOURSE IN MADRID PRICES CLIMBED TO A 1993 HIGH ON A COMBINATION OF YEAREND PORTFOLIO ADJUSTMENTS AND LONGTERM INVESTMENTS IN ZURICH PRICES WHICH GAINED ON EXPECTATIONS FOR LOWER SWISS INTEREST RATES NEXT MONTH SURVIVED A LATE WAVE OF PROFITTAKING AND FINISHED HIGHER IN HONG KONG SHARES SLUMPED 27 TO END JUST ABOVE THE DAY'S LOWS FOLLOWING A VOLATILE SESSION IN WHICH THE KEY INDEX MOVED MOSTLY IN NEGATIVE TERRITORY AFTER RECOVERING FROM A BRIEF SELLOFF AT THE OPENING THE MARKET REBOUNDED TO RECORD HIGHS BUT THE RALLY WAS SHORTLIVED AS INVESTORS TOOK PROFITS FOLLOWING A THREESESSION SURGE THAT HAD SENT PRICES UP 87 THE CORRECTION WAS GENERALLY CONSIDERED HEALTHY MANY OF THE MARKET'S SOCALLED CHINA PLAYS TRIPPED PARTLY IN REACTION TO A SHARP TWODAY DROP IN SHANGHAI'S CLASS A SHARES AVAILABLE ONLY TO CHINESE INVESTORS THAT WIPED OUT ALMOST 20 OF THE CHINESE MARKET'S VALUE IN SEOUL SHARES RALLIED 2 IN REACTION TO A SOUTH KOREAN CABINET RESHUFFLE THAT RETAINED MOST ECONOMIC MINISTERS THIS WAS VIEWED AS A COMMITMENT TO CONSISTENCY IN GOVERNMENT POLICIES AND AS INCREASED POTENTIAL FOR LIBERALIZATION MOVES THE MARKET'S STRENGTH SOLIDIFIED ON RUMORS THAT NORTH KOREA HAD AGREED TO ACCEPT A US PROPOSAL TO OPEN SUSPECTED NUCLEARDEVELOPMENT SITES TO OUTSIDE INSPECTIONS RAISING HOPES OF RESOLVING REGIONAL CONFLICTS IN MANILA THE MAIN INDEX ROSE ALMOST 1 TO POST ITS FOURTH STRAIGHT RECORD HIGH BUT IN THE BROADER MARKET PRICES ENDED MIXED IN HECTIC TRADING AS PROFITTAKING ERODED STRONG EARLY GAINS IN TAIPEI STOCKS FIRMED SOLIDLY IN SUBDUED TRADING AS INVESTORS ANTICIPATED A GROWING INFLUX OF OVERSEAS FUNDS DESPITE CONCERN ABOUT A PROPOSED CAPITALGAINS TAX ON SECURITIES THAT IS TO BE SUBMITTED BY TAIWAN'S FINANCE MINISTRY TO THE PARLIAMENT LATER THIS MONTH 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 YEAR 9312220018 931222 INTERNATIONAL BRIEF DEN NORSKE BANK CONCERN PLANS EQUITY OFFER NORWAY TO SELL PART OF STAKE DEN NORSKE BANK NORWAY'S BIGGEST BANK PLANS A BIG EQUITY OFFERING NEXT SPRING COMBINED WITH A PARTIAL SALE OF THE STATE'S CONTROLLING STAKE DNB'S PLAN TO RAISE 1 BILLION KRONER 1348 MILLION IN NEW EQUITY MEANS THE BANK CAN NOW BE DECLARED FULLY RECOVERED SAID CHAIRMAN OLE LUND THE GOVERNMENT'S INTENTION TO SELL 1 BILLION KRONER OF ITS DNB STOCK AT THE SAME TIME KICKING OFF THE BANK'S RETURN TO PRIVATE OWNERSHIP SHOWS THE STATE'S INVOLVEMENT IN THE BANK WAS MONEY WELL SPENT HE ADDED WITH HUGE LOSSES THREATENING DNB'S SURVIVAL IN THE PAST TWO YEARS THE NORWEGIAN GOVERNMENT INJECTED A TOTAL OF 64 BILLION KRONER TO KEEP THE BANK AFLOAT AT PREVAILING MARKET PRICES THE STATE'S FULLY DILUTED 875 STAKE IS VALUED AT 87 BILLION KRONER DNB OFFICIALS SAID A HEFTY PAPER PROFIT ON THE ORIGINAL INVESTMENT HOWEVER NORWEGIAN INVESTORS ARE INCENSED THAT THE GOVERNMENT IS STICKING TO A TWOSTEP PRIVATIZATION FORMULA THAT WILL SHARPLY DILUTE THE HOLDINGS OF DNB'S CURRENT PRIVATE SHAREHOLDERS BEFORE SALE OF THE STATE'S HOLDING COMMENCES NEXT YEAR 9312220017 931222 PHILADELPHIA EXCHANGE BOARD REBUFFS CBOE BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL DIRECTORS OF THE PHILADELPHIA STOCK EXCHANGE REBUFFED A TAKEOVER BID BY THE RIVAL CHICAGO BOARD OPTIONS EXCHANGE ALTHOUGH NEARLY HALF THE MEMBERS HAD VOTED INFORMALLY TO CONTINUE TALKS WITH THE CHICAGO EXCHANGE THE BOARD FELT THE MERGER WAS HIGHLY UNLIKELY TO BE APPROVED BY TWOTHIRDS OF THE MEMBERS SAID NICHOLAS GIORDANO PHILADELPHIA EXCHANGE PRESIDENT TO GO FORWARD WOULD HAVE BEEN DISRUPTIVE AND EXPENSIVE THE REJECTION OF THE CBOE BID BY 198 VOTE OF THE PHILADELPHIA BOARD WAS A BLOW TO THE CHICAGO EXCHANGE'S EFFORT TO FURTHER EXPAND ITS DOMINANT MARKET SHARE OF US OPTIONSTRADING VOLUME MORE BROADLY IT WAS A SETBACK FOR THE CONSOLIDATION MANY HAVE URGED TO CUT COSTS AND ELIMINATE OVERLAPS IN THE US OPTIONS INDUSTRY SINCE THE 1987 STOCKMARKET CRASH OPTIONSTRADING VOLUME HAS DROPPED SHARPLY AS MANY INVESTORS SHIED AWAY FROM STOCK OPTIONS THE PREVAILING VIEW IN THE INDUSTRY IS THAT OPTIONS VOLUME IS NOW TOO LOW TO SUPPORT THE FOUR MAJOR EXCHANGES CBOE CHAIRMAN ALGER B DUKE CHAPMAN SAID HIS EXCHANGE WAS DISAPPOINTED BY THE REJECTION OF THE PHILADELPHIA BOARD WE ARE CONVINCED THAT IN THESE RAPIDLY CHANGING TIMES THE TWO EXCHANGES WOULD BE STRONGER TOGETHER THAN APART MR CHAPMAN SAID HE SAID THE CBOE WOULD LEAVE THE DOOR OPEN TO DISCUSSION OF A MERGER WITH THE PHILADELPHIA EXCHANGE BUT HAD NO PLAN TO IMMEDIATELY SWEETEN ITS OFFER IN A STRAW POLL CONDUCTED AT THE PHILADELPHIA EXCHANGE THIS MONTH 226 EXCHANGE MEMBERS VOTED IN FAVOR OF ADDITIONAL MERGER TALKS WITH THE CBOE 117 VOTED AGAINST AND 154 DIDN'T RETURN BALLOTS EVEN BEFORE THE PHILADELPHIA BOARD'S VOTE ON MONDAY TO REJECT THE CBOE BID A LAWYER REPRESENTING A GROUP OF PROMERGER PHILADELPHIA SEATOWNERS HAD ACCUSED THE BOARD OF FAILING TO LIVE UP TO ITS LEGAL RESPONSIBILITIES IN ANALYZING THE BID IN A LETTER TO THE BOARD ATTORNEY PATRICK J O'CONNOR SAID WE BELIEVE THE FAILURE OF THE BOARD TO CONTINUE NEGOTIATIONS WITH THE CBOE WITHOUT THE APPROVAL OF A MAJORITY OF THE EQUITABLE TITLEHOLDERS WOULD SUPPORT OUR CONTENTION THAT THE BOARD HAS BREACHED ITS FIDUCIARY DUTY MR O'CONNOR WAS UNAVAILABLE FOR COMMENT LATE YESTERDAY OF THE NATION'S FOUR OPTIONS MARKETS THE PHILADELPHIA EXCHANGE IS MOST OFTEN MENTIONED AS A POSSIBLE TARGET FOR ACQUISITION BY ANOTHER ALTHOUGH ITS MANAGERS HAVE STEADFASTLY RESISTED SUCH OVERTURES IN 1990 THE PHILADELPHIA EXCHANGE'S BOARD REJECTED AN ACQUISITION PROPOSAL FROM THE AMERICAN STOCK EXCHANGE WHICH IS THE NATION'S SECONDBIGGEST OPTIONS EXCHANGE THE AMEX SEEN AS AN AGGRESSIVE COMPETITOR IN THE OPTIONS BUSINESS WAS SEEKING TO ACQUIRE ONLY THE PHILADELPHIA EXCHANGE'S STOCK AND STOCKOPTIONS OPERATION NOT ITS BOOMING FOREIGNCURRENCY OPTIONS MARKET THOUGH AN INCREASING SHARE OF THE PHILADELPHIA EXCHANGE'S TOTAL BUSINESS COMES FROM ITS FOREIGNCURRENCY MARKET ITS STOCK BUSINESS HAS BEEN GROWING LATELY AS WELL THE PHILADELPHIA MARKET'S STOCKTRADING VOLUME IS UP ABOUT 15 THIS YEAR WHILE TRADING IN ITS CURRENCY OPTIONS MARKET IS ALSO UP ABOUT 15 9312220016 931222 CANADIAN RETAIL SALES STALLED OTTAWA CANADIAN RETAIL SALES ROSE 01 IN OCTOBER FROM SEPTEMBER STATISTICS CANADA A GOVERNMENT AGENCY SAID OCTOBER WAS THE SECOND CONSECUTIVE MONTH TO SHOW LITTLE CHANGE IN RETAIL SALES BEFORE SEPTEMBER RETAIL SALES HAD INCREASED STEADILY SINCE EARLY 1992 9312220015 931222 BUSINESS BRIEFS THE UNITED STEELWORKERS OF AMERICA LOCALS 1104 AND 2354 AND USS/KOBE STEEL CO REACHED A TENTATIVE AGREEMENT ON A NEW 5 1/2YEAR CONTRACT USS/KOBE IS A 5050 JOINT VENTURE BETWEEN USX CORP'S US STEEL GROUP AND KOBE STEEL LTD OF JAPAN MAGNA GROUP INC AGREED TO ACQUIRE THE BANK OF CHESTERFIELD MO FOR 105 MILLION IN MAGNA STOCK A SUBSIDIARY OF TURNER CORP IN A JOINT VENTURE WITH MIDWEST MECHANICAL CONTRACTORS WILL BE CONSTRUCTION MANAGER FOR A NEW 130 MILLION HEADQUARTERS AND DRUGDEVELOPMENT PROJECT IN KANSAS CITY MO FOR MARION MERRELL DOW INC HALO INDUSTRIES INC AGREED TO ACQUIRE LEE WAYNE CO STERLING ILL A DISTRIBUTOR OF ADVERTISING SPECIALTIES AND PREMIUM BUSINESS GIFTS TERMS WEREN'T DISCLOSED 9312220014 931222 BIG BOARD SEATS FETCH 750000 NEW YORK THE NEW YORK STOCK EXCHANGE SAID TWO SEATS ON THE EXCHANGE SOLD FOR 750000 EACH UNCHANGED FROM THE LAST SALE ON NOV 12 THE CURRENT BID FOR A BIG BOARD SEAT IS 690000 WITH 1 MILLION OFFERED 9312220013 931222 DIVIDEND NEWS BANKERS TRUST NEW YORK CORP BANKERS TRUST NEW YORK CORP NEW YORK BOOSTED ITS QUARTERLY DIVIDEND 15 TO 90 CENTS FROM 78 CENTS PAYABLE JAN 25 TO SHARES OF RECORD JAN 6 WHILE PAST INCREASES HAVE RANGED FROM 9 TO 12 THE HIGHER INCREASE IS JUSTIFIED BY OUR CURRENT CAPITAL POSITION AND EARNINGS SAID CHAIRMAN CHARLES S SANFORD JR THE BANKING COMPANY SAID IT HAS PURCHASED ABOUT FOUR MILLION COMMON SHARES DURING 1993 TO MEET REQUIREMENTS OF STOCKOPTION AND STOCKAWARD PLANS AND EXPECTS TO PURCHASE AN ADDITIONAL ONE MILLION TO TWO MILLION SHARES DURING 1994'S FIRST QUARTER 9312220012 931222 BELTWAY BOG HOW WASHINGTON FRUSTRATES CHANGE OBSTACLE COURSE PRESIDENT'S GOALS MEET WASHINGTON'S WAYS AND HE HAS TO ADAPT CLINTON LEARNS TO CUT DEALS COURT THE MIGHTY TO WIN SOME FIRSTYEAR CHANGE LAMENTING RISE IN CYNICISM BY JEFFREY H BIRNBAUM AND GERALD F SEIB STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON BILL CLINTON'S YOUNG ADMINISTRATION HIT A LOW POINT ON THE HOT HUMID SATURDAY OF JULY 3 THE PRESIDENT'S SIGNATURE DEFICITCUTTING PACKAGE WAS SLOWLY DYING IN CONGRESS AND HIS PRESIDENCY SEEMED TO BE FADING WITH IT BILL AND HILLARY CLINTON WERE SEETHING AND DETERMINED TO STOP THE FREE FALL THEY GATHERED THEIR TOP ADVISERS IN THE SOLARIUM OF THE WHITE HOUSE RESIDENCE LATE THAT AFTERNOON A STERN PACING MR CLINTON TOLD HIS TEAM BLUNTLY THAT DEFEAT SIMPLY WASN'T AN OPTION WE MUST GET RID OF THIS BONE IN OUR THROAT HE WARNED HIS WIFE DELIVERED A MORE POINTED ANALYSIS THE WHITE HOUSE HAD TO GET A LOT SMARTER ABOUT PLAYING THE WASHINGTON GAME THE PRESIDENT THEN HEADED OFF TO TOKYO FOR AN ECONOMIC SUMMIT AS HE WALKED OFF AIR FORCE ONE ON HIS RETURN HE WAS HANDED A BOUND DOCUMENT DETAILING HOW TO MANIPULATE EVERY ASPECT OF THE WASHINGTON MACHINE FROM DOWNTOWN LOBBYISTS TO THE BARONS OF CAPITOL HILL IN ORDER TO WIN THE BUDGET FIGHT THE UNDERLYING MESSAGE THE MAN FROM ARKANSAS WHO HAD VOWED TO CHANGE THE WAYS OF WASHINGTON WOULD INSTEAD HAVE TO BEND TO THOSE WAYS IF HE WANTED TO SUCCEED MR CLINTON HEEDED THAT MESSAGE BARELY WINNING APPROVAL FOR HIS DEFICITCUTTING BILL WRESTING CONGRESSIONAL SUPPORT FOR A TRADE AGREEMENT WITH MEXICO AND ENDING THE YEAR WITH A RESPECTABLE RECORD OF ACCOMPLISHMENT BUT THE YEARLONG EDUCATION OF BILL CLINTON HAS IN ITSELF BEEN A LESSON IN THE IMMUTABLE NATURE OF WASHINGTON IN AN UNUSUALLY REFLECTIVE INTERVIEW WITH THE WALL STREET JOURNAL ON DEC 15 MR CLINTON PROVIDED HIS OWN DIAGNOSIS OF THE PROBLEMS IN DEALING WITH WASHINGTON'S CULTURE OF CYNICISM WE ARE SUFFERING FROM SORT OF A 30YEAR ACCELERATING PACE OF SKEPTICISM ABOUT POLITICIANS IT IS DIFFICULT FOR PEOPLE TO FUNCTION IN AN ENVIRONMENT IN WHICH THEY FEEL THAT THEIR CHARACTER THEIR VALUES AND THEIR MOTIVES ARE ALWAYS SUSPECT AND WHERE THE PRESUMPTION HERE IS AGAINST THEM HERE HE ADDED WITH OBVIOUS VEXATION IT'S A LOT EASIER TO DISH OUT PAIN THAN HOPE AND REINFORCEMENT MR CLINTON RAN HEADLONG INTO EACH OF THE POTENT OBSTACLES TO CHANGE DETAILED IN THIS SERIES OF ARTICLES AND TO A DEGREE WAS FORCED TO BOW TO EACH OF THEM THE INFLUENCE OF CONGRESSIONAL LEADERS AND ENTRENCHED BUREAUCRATS BEGAN THWARTING HIM FROM ALMOST HIS FIRST DAY IN OFFICE THE SAME ADMINISTRATION THAT EARLY IN THE YEAR CLOSED OFF A WHITE HOUSE CORRIDOR TO THE PRESS WAS BY YEAREND COURTING PRESS CHIEFTAINS IN AN EFFORT TO SELL ITS HEALTHCARE PLAN THE PRESIDENT WHO DECRIED SPECIALINTEREST POLITICS EVENTUALLY PAID OFF SOME OF THOSE SAME SPECIAL INTERESTS TO WIN VOTES FOR THE NORTH AMERICAN FREE TRADE AGREEMENT AND THE PRESIDENT WHO PROMISED TO CUT MONEY'S STRANGLEHOLD ON POLITICS ALLOWED A NEW CAMPAIGNFINANCE LAW TO DROP OFF THE FIRST YEAR'S AGENDA AND NOW IS WATCHING TWO OF HIS TOP AIDES HEAD OFF TO LUCRATIVE JOBS WITH LOBBYING FIRMS THESE HAVE BEEN ESPECIALLY HARD LESSONS FOR MR CLINTON SOME OF THE PROBLEMS HAVE BEEN OF HIS OWN MAKING HE CONCEDES THAT THE START OF HIS PRESIDENCY WAS AT TIMES RAGGED AND HE STILL IS DOGGED BY CONTROVERSY IN JUST THE PAST FEW DAYS HIS PREFERRED MESSAGES ABOUT HEALTH CARE AND CRIME HAVE BEEN DROWNED OUT BY A STEADY STEAM OF NEGATIVE STORIES OF THE KIND HE BEMOANED IN HIS INTERVIEW JUST LAST WEEK THE ACCOUNTS RANGE FROM ALLEGEDLY MISSING WHITE HOUSE FILES ON A FAILED REALESTATE INVESTMENT BY THE CLINTONS TO ALLEGATIONS BY STATE TROOPERS ABOUT MR CLINTON'S PERSONAL LIFE WHEN HE WAS GOVERNOR OF ARKANSAS THE WHITE HOUSE KNOWS THAT WASHINGTON AND PUBLIC OPINION IS FICKLE MR CLINTON CAMPAIGNED ON A PROMISE OF CHANGE AND FEW PRESIDENTS HAVE BEGUN THEIR TERMS WITH HIGHER EXPECTATIONS THAT THEY WOULD SHAKE THINGS UP AT THE BEGINNING OF HIS TERM A WALL STREET JOURNAL/NBC NEWS POLL INDICATED THAT 75 OF THOSE SURVEYED EXPECTED A GREAT DEAL OR AT LEAST A FAIR AMOUNT OF CHANGE BUT BY YEAREND THAT HOPE HAD FADED ONLY 57 THOUGHT THEY SAW THAT KIND OF CHANGE AND THE PUBLIC'S FAITH IN WASHINGTON TO DO WHAT IS RIGHT ALL OR MOST OF THE TIME HAS CONTINUED ITS THREEDECADELONG SLIDE DROPPING TO 14 IN THE JOURNAL/NBC POLL EARLIER THIS MONTH FROM 23 IN A GALLUP POLL TAKEN IN MARCH BY 47 TO 32 MORE PEOPLE BELIEVE WASHINGTON HAS CHANGED BILL CLINTON THAN THINK HE HAS CHANGED WASHINGTON ASKED ABOUT THAT FINDING MR CLINTON SAID PEOPLE ARE DEEPLY SKEPTICAL THAN ANYBODY CAN CHANGE WASHINGTON A CONDITION THAT HE CONCEDED HASN'T BEEN AIDED BY THE FACT THAT HIS PROPOSED CAMPAIGNFINANCE AND LOBBYINGLAW CHANGES DIDN'T PASS THIS YEAR HE ALSO ACKNOWLEDGED THAT WASHINGTON HAS IN FACT CHANGED HIM IT IS ALSO TRUE THAT I DID HAVE TO LEARN HOW TO OPERATE HERE AND THAT MOST AMERICANS WANT ME TO BE EFFECTIVE SO IT'S NOT ALL BAD IF WASHINGTON HAS CHANGED ME SOME IN THE MEANTIME THE MODERN PRESIDENCY IS FAR LESS POWERFUL THAN MOST PEOPLE THINK AND ITS DIMINISHED POWER IS AN INCREASINGLY IMPORTANT REASON WASHINGTON SEEMS SO IMPERVIOUS TO CHANGE ANY CONTEMPORARY PRESIDENT FACES TOUGHER SLEDDING THAN HIS PREDECESSORS WE'VE GOT A DETACHED ELECTORATE THAT'S UP FOR GRABS AND IT TENDS TO BE MUCH MORE CYNICAL AND SKEPTICAL SAYS WHITE HOUSE COUNSELOR DAVID GERGEN A PRESIDENTIAL AIDE GOING BACK TO THE NIXON YEARS FOR STARTERS PARTY DISCIPLINE HAS ERODED FORCING A PRESIDENT TO CONSTANTLY FORM NEW CONGRESSIONAL COALITIONS EVEN IF HIS PARTY NOMINALLY CONTROLS CONGRESS SPECIALINTEREST MONEY HAS BECOME MORE IMPORTANT THAN PARTY AID IN HELPING LAWMAKERS WIN REELECTION AND THE PARTIES THEMSELVES ARE SEEING THEIR GRASP ON THE AMERICAN POLITICAL SYSTEM LOOSENED IN 1992 THE POLITICAL SYSTEM SPLINTERED FURTHER ROSS PEROT HELPED CULTIVATE A RADICAL MIDDLE IN THE AMERICAN ELECTORATE THAT DIVIDED THE TRADITIONAL TWOPARTY VOTE THAT PRODUCED AN ELECTION IN WHICH MR CLINTON WON BUT GOT JUST 43 OF THE VOTE AND CLAIMED A MAJORITY OF VOTES IN ONLY ONE STATE HIS NATIVE ARKANSAS WHAT'S MORE IN RECENT YEARS THE ONCEMIGHTY PRESIDENTIAL BULLY PULPIT HAS BEEN WHACKED DOWN TO SIZE BY A PROLIFERATION OF NEW TELEVISION CHANNELS AN EXPLOSION IN TALK SHOWS AND THE EMERGENCE OF OTHER NEW MEDIA OUTLETS THEY ALL PRODUCE COMPETING MESSAGES AND CRITICISM THAT OFTEN DROWN OUT THE VOICE OF THE PRESIDENT WHEN RONALD REAGAN WAS PRESIDENT HE SEEMED TO OWN THE AIRWAVES ONE YEAR HE DELIVERED EIGHT PRIMETIME SPEECHES ALL FAITHFULLY CARRIED BY THE THREE MAJOR NETWORKS THAT THEN DOMINATED THE COMMUNICATIONS SYSTEM PRESIDENT CLINTON HAS DELIVERED JUST TWO LARGELY BECAUSE THE NETWORKS WOULDN'T AGREE TO CARRY MORE YOU NO LONGER CAN COMMAND THE WHOLE AUDIENCE MR GERGEN SAYS ONE OF THE ORIGINAL MASTERS OF MEDIA MANIPULATION MR GERGEN IS HIMSELF SURPRISED AT THE CHANGES THAT HAVE TAKEN PLACE JUST SINCE HE SERVED IN THE REAGAN ADMINISTRATION IT IS INCREASINGLY DIFFICULT TO MOVE THE COUNTRY THROUGH TELEVISION HE SAYS MR CLINTON COMPLAINED THAT THE PROLIFERATION OF INFORMATION DOESN'T ALWAYS LEAD TO A MORE SOPHISTICATED PUBLIC UNDERSTANDING OF ISSUES YOU CAN HAVE MORE INFORMATION AND LESS UNDERSTANDING HE SAID THE RESULT OF ALL THIS IS THAT THE PRESIDENT MUST WIN HIS BATTLES VOTE BY VOTE IN WHAT INTERIOR SECRETARY BRUCE BABBITT CALLS TRENCH WARFARE IN THE EIGHT WEEKS PRIOR TO HIS NAFTA VICTORY MR CLINTON MET PERSONALLY WITH MORE THAN 150 UNDECIDED LAWMAKERS IN TWO DOZEN SEPARATE MEETINGS AND STILL THE VOTE WAS NIPANDTUCK EVEN TO WIN PASSAGE OF A GENERALLY POPULAR NATIONAL SERVICE PLAN WHICH TRADES COLLEGETUITION PAYMENTS FOR COMMUNITYSERVICE WORK WHITE HOUSE AIDE ELI SEGAL HAD TO PERSONALLY LOBBY IN THE OFFICES OF 67 SENATORS AND MR BABBITT WHO IS TRYING TO ACCOMPLISH THE SEEMINGLY EASY TASK OF RAISING ANTIQUATED GRAZING FEES PAID BY RANCHERS WHO USE FEDERAL LANDS HAS HAD TO MAKE FIVE TRIPS TO COLORADO IN THE PAST FIVE WEEKS ALONE TO CAMPAIGN FOR THE CHANGE AND PROBABLY FACES A WHOLE YEAR OF PUBLIC HEARINGS AND COURT HAGGLING IN 1994 BEFORE HE CAN GET WHAT HE WANTS IF YOU ARE GOING TO ACHIEVE CHANGE YOU HAVE TO FOCUS IN ON THAT CHANGE SAYS TOP AIDE GEORGE STEPHANOPOULOS YOU HAVE TO BE OBSESSED AND SINGLEMINDED THOSE LESSONS WILL CONTINUE TO BE IMPORTANT IN THE COMING YEAR AS THE PRESIDENT FIGHTS TO WIN APPROVAL FOR OVERHAULING THE HEALTHCARE SYSTEM MR CLINTON NOW KNOWS HE WON'T BE ABLE TO DICTATE THE DETAILS OF THAT PLAN AT BEST HE WILL PROBABLY HAVE TO ACCEPT WHATEVER HEALTHCARE OVERHAUL CONGRESSIONAL LEADERS ARE ABLE TO CONCOCT AND THE PROCESS WITH ITS MESSY CONFRONTATIONS ITS DEALS AND RETREATS MIGHT IN THE END ONLY FEED PUBLIC CYNICISM RATHER THAN LESSEN IT AS MR CLINTON HEADS INTO HIS SECOND YEAR AIDES SAY HIS STRATEGY WILL BE TO PICK FEWER BATTLES HEALTH CARE CRIME AND WELFARE OVERHAUL BEING THE TOP CANDIDATES SO HE CAN CONCENTRATE HIS LIMITED ENERGIES AND AUTHORITY INTENSIVELY ON EACH HE ALSO IS PREPARED TO HONOR THE OLD WASHINGTON TRADITION OF BUYING VOTES WITH CARROTS RATHER THAN BEATING THEM OUT WITH STICKS THE CENTRAL CONUNDRUM OF THE CLINTON ADMINISTRATION WAS LAID OUT DURING THE ADMINISTRATION'S VERY FIRST WEEKEND AT A CAMP DAVID RETREAT THE ENTIRE CABINET DRESSED CASUALLY IN SWEATERS AND SLACKS WAS PRESENT WHEN MR CLINTON'S POLITICAL STRATEGISTS GAVE A PRESCIENT BRIEFING THE STRATEGISTS ASSERTED THAT THE AMERICAN PEOPLE HATED GOVERNMENT BUT ALSO WANTED IT TO DO MORE FOR THEM CLINTONITES COUNSELED STANLEY GREENBERG THE PRESIDENT'S POLLSTER WERE IN THE UNCOMFORTABLE POSITION OF HAVING TO BE REFORMERS OF GOVERNMENT AND ADVOCATES OF GOVERNMENT ACTION AT THE SAME TIME STILL THE PRESIDENT WAS OPTIMISTIC HE COULD CHARGE AHEAD AT FULL SPEED AT ONE OF HIS FIRST DINNERS FOR FRIENDS AT THE WHITE HOUSE HE ROSE TO DENOUNCE THE NAYSAYERS WHO GREETED HIS ARRIVAL TO THE CAPITAL HE DECLARED THAT HE AND HIS WIFE WOULD SIMPLY REFUSE TO MOVE SLOWLY FROM ONE LIMITED GOAL TO THE NEXT AS THE FAINTHEARTED ADVISED BUT WOULD WORK ON THE HARD THINGS ALL AT ONCE AND RIGHT FROM THE START BUT THE CLINTON TEAM WAS IN FOR SOME RUDE SURPRISES FOR ONE IT UNDERESTIMATED THE DEPTH OF PUBLIC CYNICISM ABOUT GOVERNMENT MR CLINTON DISCOVERED THAT IN LAUNCHING NATIONAL SERVICE A PROGRAM HE SAW AS A KENNEDYESQUE WAY TO TAP INTO AMERICANS' IDEALISM BY PROVIDING YOUNG PEOPLE AN AVENUE TO SERVE THEIR COUNTRY YET IN SOUNDING OUT PUBLIC ATTITUDES ABOUT NEW PROGRAMS EARLY ON THE ADMINISTRATION RAN HEADLONG INTO PEOPLE'S CONTEMPT FOR WASHINGTON PRESIDENTIAL AIDES ASKED A FOCUS GROUP OF 15 VOTERS IN MARYLAND TO NAME ONE GOVERNMENT PROGRAM THAT HAS WORKED NOT A SINGLE PARTICIPANT SPOKE UP TO OFFER ANY EXAMPLE NOT EVEN THOSE PEOPLE WHO CASHED A SOCIAL SECURITY CHECK EVERY MONTH FROM THERE THE YEAR PROGRESSED LIKE A GIANT ROLLER COASTER THE FIRST HALF WAS A STEADY DOWNWARD SLIDE AS THE FORCES OF WASHINGTON TOOK THEIR TOLL ON THE NEW PRESIDENT THE GREENHORN CLINTONITES HAD COME TO WASHINGTON BELIEVING THERE WERE AT LEAST SOME THINGS THEY COULD CHANGE WITH JUST THE STROKE OF A PEN THE PRESIDENT FOR INSTANCE INTENDED AS ONE OF HIS FIRST ACTS TO SIGN AN EXECUTIVE ORDER TO END THE PROHIBITION ON GAYS IN THE MILITARY BUT HE UNDERESTIMATED THE WILLINGNESS OF UNHAPPY SENATORS BACKED BY DEEPLY OFFENDED MILITARY OFFICERS TO BLOCK HIM SIMPLY BY ATTACHING AMENDMENTS TO WHOLLY UNRELATED LEGISLATION THE DEAL COLLAPSED MR CLINTON LEARNED THAT THE POWERSTHATBE IN WASHINGTON DON'T LIKE BEING SURPRISED OR TAKEN FOR GRANTED AND HE LEARNED THAT THE PRESS IS A HUGE FORCE THAT MUST BE RECKONED WITH NO MATTER WHAT THE PRESIDENT DID OR SAID THE ONLY ISSUE REPORTERS ASKED ABOUT WAS GAYS IN THE MILITARY AND THAT WAS MOSTLY WHAT THE PUBLIC SAW AND READ ABOUT HIS NASCENT ADMINISTRATION IT WAS TOO GOOD AN ISSUE MR STEPHANOPOULOS RECALLS IT HAD MILITARY IT HAD SEX IT HAD CONTROVERSY IT HAD HOMOSEXUALITY IT WAS A MADEFORTV CRISIS THAT UNDERSCORES A BROADER COMPLAINT FROM MR CLINTON HIMSELF ABOUT THE ROLE OF THE PRESS IN WASHINGTON NEWS IS NOW SO PERVASIVE AND IMMEDIATE HE SAID A LOT OF PEOPLE IN THE NEWS BUSINESS AND MAYBE ESPECIALLY ON THE MAJOR NETWORK TELEVISION NEWS ARE MORE PRONE TO GET INTO COMMENTARY AS OPPOSED TO JUST SORT OF HERE'S WHAT HAPPENED TODAY' ON THE ASSUMPTION THAT YOU ALREADY KNOW WHAT HAPPENED TODAY THE BUMPY RIDE CONTINUED FROM THERE MR CLINTON GOT A FULLBLOWN HAZING FROM CONGRESS IN APRIL A SENATE THAT HIS PARTY SUPPOSEDLY CONTROLS KILLED ONE OF HIS CHERISHED PROGRAMS A STIMULUS PACKAGE TO GENERATE NEW JOBS THE PRESIDENT MADE THE MISTAKE OF RELYING ON THE SENATE'S AGED AND INFLEXIBLE APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD OF WEST VIRGINIA TO CARRY HIS PROGRAM RATHER THAN ACCEPTING A COMPROMISE PUSHED BY TWO UPSTART LEADERS OF THE SENATE CONSERVATIVE DEMOCRATS DAVID BOREN OF OKLAHOMA AND JOHN BREAUX OF LOUISIANA THE NET RESULT REPUBLICANS FILIBUSTERED THE BILL TO DEATH MEANWHILE SCANDAL ENGULFED THE WHITE HOUSE TRAVEL OFFICE REPUBLICAN OPPONENTS SENSING THEIR ABILITY TO USE THE AIRWAVES TO DROWN OUT THE PRESIDENT'S MESSAGE CONVINCED MOST OF THE COUNTRY THAT THE PRESIDENT'S PLAN ON THE DEFICIT AMOUNTED TO A TAX INCREASE FOR THEM SO MR CLINTON'S OWN PARTY MEMBERS DELETED THE CENTERPIECE OF THAT PACKAGE A BROADBASED ENERGY TAX WORST OF ALL FOR MR CLINTON VINCENT FOSTER A CHILDHOOD FRIEND AND WHITE HOUSE AIDE COMMITTED SUICIDE NOTHING MORE STARKLY SYMBOLIZED THE ADMINISTRATION'S PLUMMETING FORTUNES AND IN A CHILLING COMMENTARY ON THE CLINTONITES' VIEW OF WASHINGTON MR FOSTER TOLD A COLLEAGUE BEFORE HE DIED UNTIL WE GOT TO WASHINGTON WE THOUGHT OF OURSELVES AS GOOD PEOPLE IT WAS IN THOSE DARK DAYS THAT MR CLINTON BEGAN HIS DEEP BOW TO THE IMMOVABLE FORCES OF WASHINGTON HIRING AS HIS SPECIAL COUNSELOR MR GERGEN A VETERAN OF THREE REPUBLICAN WHITE HOUSES AND THE VERY EMBODIMENT OF THE WASHINGTON ESTABLISHMENT AND THE PRESIDENT BEGAN TO ORGANIZE THE REST OF HIS STAFF TO ACCEDE TO THE OTHER REALITY OF THE DAY THE NEED FOR A PRESIDENT TO PRESS INTENSE DUAL CAMPAIGNS INSIDE AND OUTSIDE THE BELTWAY TO GET HIS MESSAGE THROUGH WITH SO MANY FORCES FOMENTING PUBLIC CYNICISM HE DISCOVERED HE HAD TO DEVOTE FAR MORE ENERGY JUST TO BEING HEARD ABOVE THE DIN IN THIS WASH OF EXPOSURE THAT WE ALL GET MR CLINTON SAID IN THE WALL STREET JOURNAL INTERVIEW IT IS MORE DIFFICULT TO SUSTAIN A CENTRAL OVERARCHING MESSAGE TO THE AMERICAN PEOPLE IT'S JUST A CHALLENGE WITH THIS CHALLENGE IN MIND A FUNDAMENTAL CHANGE WAS MADE IN THE WAY THE CLINTON WHITE HOUSE OPERATES MAKING IT LESS LIKE AN EXECUTIVE DECISIONMAKING BODY AND MORE LIKE AN INSTRUMENT OF PUBLIC PERSUASION REVIVING AN IDEA FROM HIS SUCCESSFUL CAMPAIGN MR CLINTON AND HIS AIDES REESTABLISHED THE WAR ROOM WITH REPRESENTATIVES OF EVERY WHITE HOUSE DEPARTMENT TO COORDINATE EFFORTS TO COMMUNICATE NOT ONLY TO THE NATION BUT ALSO TO EVERY ELEMENT OF WASHINGTON FROM LOBBYISTS TO MEMBERS OF CONGRESS RATHER THAN RULE BY DECREE THE CLINTON PEOPLE FOUND THEY HAD TO RUN A PERPETUAL CAMPAIGN FOR ACCEPTANCE BY THE PUBLIC AT LARGE AND BY WASHINGTON ITSELF THE WAR ROOM HELPED TO EKE OUT THE BUDGET VOTE AND LATER TO SECURE VICTORY FOR NAFTA BUT THE SUCCESSES HAVE COME AT A PRICE MR CLINTON HAS FOUND THAT SO MUCH TIME ENERGY AND POLITICAL CAPITAL MUST BE EXPENDED TO GET EVEN MODEST CHANGES THROUGH THAT MORE SWEEPING EFFORTS TO CHANGE THE BELTWAY CULTURE HAVE HAD TO BE PUT ASIDE CAMPAIGNFINANCE AND LOBBYINGLAW CHANGES HAVE BEEN POSTPONED UNTIL NEXT YEAR THE INTENSE BATTLE FOR HEALTHCARE REFORM NEXT YEAR MAY DICTATE THAT THEY GET POSTPONED ONCE AGAIN THE LESSON OF 1993 IS THAT CHANGE CAN COME BUT THAT IT IS A SLOWER AND MORE LABORIOUS PROCESS THAN THE PUBLIC THOUGHT AT THE BEGINNING OF THE YEAR FOR HIS PART MR CLINTON REFUSES TO ABANDON HIS EFFORT TO CHANGE WASHINGTON'S CULTURE HE BELIEVES POLITICAL REFORM WOULD INCREASE PUBLIC CONFIDENCE AND HE WANTS DEEPER CHANGE AS WELL SOMETHING THAT CUTS MORE TO WASHINGTON'S SOUL HE WANTS LESS CYNICISM LESS MEANNESS IN THE NATION'S CAPITAL I'M TRYING TO MAKE THESE MEMBERS OF CONGRESS FEEL THAT THEY'RE INVOLVED IN SOMETHING THAT CAN BE NOBLE AND GOOD HE SAID AND THAT IT'S OK IF THEY WANT TO FIGHT WITH ME OR DISAGREE WITH ME BUT THEY OUGHT NOT TO DO IT JUST FOR SOME SHORTTERM IMMEDIATE ADVANTAGE TO UNDERSCORE THE POINT HE LEANED FORWARD IN HIS GOLDUPHOLSTERED CHAIR IN FRONT OF THE OVAL OFFICE FIREPLACE AND RECALLED THE STORY OF HIS EIGHTHGRADE SCIENCE TEACHER BACK HOME IN ARKANSAS THE TEACHER HE SAID WASN'T A PARTICULARLY HANDSOME MAN YET HE TOLD HIS STUDENTS THAT EACH MORNING HE SPLASHED WATER ON HIS FACE SHAVED THEN LOOKED INTO THE MIRROR AND TOLD HIMSELF VERNON YOU'RE BEAUTIFUL THE LESSON FOR WASHINGTON MR CLINTON SAID IS THIS IF YOU WANT TO BRING OUT THE BEST IN A COUNTRY YOU HAVE TO TRY TO BRING OUT THE BEST IN PEOPLE YOU HAVE TO TRY TO ELEVATE THEM TO MAKE THEM BELIEVE THAT THINGS ARE POSSIBLE BUT YOU JUST HAVE TO MAKE IT WORK IN A DIFFERENT WAY 9312220011 931222 MARKETING & MEDIA ADVERTISING LEAP PARTNERSHIP TAKES PLUNGE OFFERS UNIQUE ALLCREATIVE SHOP BY KEVIN GOLDMAN LEAP PARTNERSHIP A NEW AD AGENCY WITH A FROG AS ITS LOGO FEELS THE CURRENT WAY OF DOING BUSINESS ALONG MADISON AVENUE HAS GONE BY THE BOARDS EITHER CHANGE LEAP ARGUES OR THE AGENCY BUSINESS WILL WELL CROAK THE FLEDGLING AGENCY FOUNDED JUST THREE MONTHS AGO BY FORMER EMPLOYEES OF OMNICOM GROUP'S DDB NEEDHAM IS AN ANOMALY IN THE AD BUSINESS TODAY AN ALLCREATIVE SHOP IT DOESN'T TRY TO OFFER CLIENTS THE FULL ARRAY OF SERVICES SUCH AS MEDIA BUYING AND MARKET RESEARCH TO INTRODUCE ITSELF IT HAS PLACED THREE FULLPAGE ADS IN ADVERTISING AGE THAT SKEWER BUSINESSASUSUAL ALONG MADISON AVENUE WRITTEN BY TWO OF LEAP'S SENIOR PARTNERS THE ADS RUN OVER 700 WORDS OF SMALL PRINT MUCH OF IT INFLAMMATORY ONE AD IN PARTICULAR HEADLINED WHY YOU WON'T GET THAT BIG RAISE YOU WERE HOPING FOR THIS YEAR DETAILS WHAT LEAP FEELS IS THE INDUSTRY'S CURRENT MALAISE LEAP CONTENDS THAT MANY IN THE AD BUSINESS CAN FORGET NOT ONLY RAISES BUT CHRISTMAS PARTIES WHY WE'RE SORRY TO INFORM YOU IT'S NOT THE ECONOMY TIMES AREN'T TOUGH AND IT WILL NOT GET BETTER LEAP'S DIAGNOSIS AGENCIES TODAY ARE MORE CONCERNED WITH SERVICING THEIR DEBT THAN WITH SERVICING THEIR CLIENTS THE RESULTS LEAP CONTENDS CAN BE SEEN IN FROZEN WAGES AND AGENCY LAYOFFS THE AD CONTINUES THAT BECAUSE THERE IS NO SYSTEM FOR REWARDING OUTSTANDING CREATIVE WORK EMPLOYEES GIVE UP LIGHTS GO OFF AT PRECISELY FIVE ELEVATORS RACE FOR THE PARKING GARAGE THINKING STOPS NOT SURPRISINGLY LEAP PARTNERSHIP THINKS IT HAS THE ANSWER THE AGENCY YET TO WIN ITS FIRST CLIENT HAS A SINGLE PRODUCT THE ONLY THING AD AGENCIES HAVE LEFT TO SELL TO CLIENTS THAT THEY CAN'T GET ANYWHERE ELSE IS CREATIVE IDEAS SAYS GEORGE GIER A CREATIVE PARTNER AND COFOUNDER OF LEAP OTHER COMPANIES SUCH AS DEWITT MEDIA AND WESTERN INTERNATIONAL MEDIA AND AC NIELSEN HAVE ENCROACHED ON TYPICAL AD AGENCY FUNCTIONS SUCH AS MEDIA BUYING AND RESEARCH MR GIER ADDS THE CLIENT CAN GET ANYTHING IT WANTS FROM OUTSIDE THE AD AGENCY BUT IDEAS MR GIER SAYS LEAP EXECUTIVES ARE REMINDED THAT CLIENTS DON'T EVEN NEED AGENCIES FOR IDEAS ANY LONGER WHEN IT SOUGHT CREATIVE INPUT FOR ITS CURRENT CAMPAIGN COCACOLA BYPASSED INTERPUBLIC GROUP'S MCCANNERICKSON THE AGENCY FOR ITS FLAGSHIP BRAND IN FAVOR OF CREATIVE ARTISTS AGENCY A HOLLYWOOD TALENT AGENCY SAYS FRED SMITH ANOTHER LEAP CREATIVE PARTNER CAA ONLY DEALT WITH A CAMPAIGN'S EXECUTION IT DIDN'T COME UP WITH LONGTERM CAMPAIGN AND BRANDBUILDING WITH A FOCUS LEAP SAYS THE FULLSERVICE WAY OF DOING BUSINESS ISN'T COSTEFFICIENT FOR THE CLIENT IT CITES AN INDUSTRY STUDY BY MARK GAINES FOR ADVERTISING AGE SHOWING THAT ON AVERAGE ONLY 17 OF A CLIENT'S AGENCY BILLINGS GOES TO THE CREATIVE PROCESS ANOTHER 21 IS SIPHONED OFF ON ADMINISTRATIVE EXECUTIVE OVERHEAD AND THE REMAINING 62 IS SPREAD OUT OVER OTHER SERVICES IN CONTRAST LEAP CLAIMS THAT 76 OF WHAT IT WILL CHARGE CLIENTS WILL BE EARMARKED FOR CREATIVE RESPONSIBILITIES IT'S AN UNTESTED AND RISKY IDEA MOST LARGE COMPANIES SEEM TO TAKE COMFORT IN THE SECURITY OF A FULLSERVICE AGENCY SUCH AS LEO BURNETT IN CHICAGO OR OMNICOM'S BBDO IN THIS ERA OF PITCHED BATTLES FOR MARKET SHARE MANY COMPANIES WANT ALL THEIR RESOURCES UNDER ONE ROOF SAYS PAUL MULCAHY FORMER VICE PRESIDENT OF MARKETING SERVICES AT CAMPBELL SOUP WHO RETIRED LAST YEAR AND NOW CONSULTS WITH COMPANIES WHILE EVERYONE IS GROPING FOR THE NEXT BIG CREATIVE BREAKTHROUGH SOME CLIENTS LIKE THE IDEA OF ONESTOP SHOPPING AND HAVING ALL ADVERTISING RESPONSIBILITIES UNDER ONE ROOF HE SAYS MR MULCAHY ISN'T CONVINCED THAT A CREATIVEONLY SHOP IS NECESSARILY THE SOLUTION TO ADVERTISING MALAISE ESPECIALLY WITH AD BUDGETS LEANER HE SAYS SOME CLIENTS WANT TO MAKE SURE THE AD AGENCY FILLS ALL THEIR NEEDS THAT'S NOT EASY WHEN YOU'RE OFFERING JUST CREATIVE INPUT LEAP ARGUES THAT UNTIL NOW CLIENTS HAD NO CHOICE IT WAS A FULLSERVICE AGENCY OR NOTHING SHOULD COMPANIES DEMAND A SMORGASBORD OF SERVICES LEAP EVEN HAS A RECOMMENDATION ONE OF ITS ADS SALUTES BURNETT AS THE BEST FULLSERVICE ADVERTISING AGENCY IN THE WORLD ONE THAT IT DESCRIBES AS A HIGHPOWERED EVERYTHINGUNDERONEROOF MARKETING MACHINE AFTER AN UNABASHED SELFSALUTE OFFERING CLIENTS DIRECT ACCESS TO THE TOP CREATIVE MINDS IN THE INDUSTRY LEAP ALSO PRINTS BURNETT'S TELEPHONE NUMBER BURNETT IN RESPONSE SENT LEAP A BOTTLE OF CHAMPAGNE AND A GOODLUCK NOTE LEAP SAYS IT IS THE FIRST AGENCY TO EMBARK ON WHAT SOME WOULD SAY RISKY LEAP WOULD SAY SOUND STRATEGY LAST YEAR JERRY DELLA FEMINA THE FLAMBOYANT CREATIVE WIZARD OPENED A NEW AGENCY JERRY INC WITH SUCH CLIENTS AS NEWSWEEK PUDGIE'S CHICKEN JUST TOYS AND THE NEW YORK METS AT THE TIME MR DELLA FEMINA SAID HE WOULD EMPLOY A NEW BUSINESS PLAN HE WOULD FORM SMALL SEPARATE SHOPS TO HANDLE EACH ACCOUNT IF JERRY INC LOST AN ACCOUNT IT WOULD SIMPLY SHUT DOWN THE SHOP THAT SERVICED THAT CLIENT SO FAR SO GOOD MR DELLA FEMINA HASN'T LOST A SINGLE CLIENT YET BUT WHILE JERRY INC IS UNCONVENTIONAL UP TO A POINT IT BUYS SOME OF THE MEDIA FOR ITS CLIENTS SO WHO ARE LEAP'S AUDACIOUS FOUNDERS MR GIER 33 YEARS OLD IS JOINED BY FRED SMITH 39 AND JOE SCIARROTTA 31 AS CREATIVE PARTNERS THE THREE MET WHILE TOILING ON ANHEUSERBUSCH'S BUD LIGHT ACCOUNT AT NEEDHAM'S CHICAGO OFFICE THE TEAM SAYS MR SMITH IS RESPONSIBLE FOR THE CURRENT BUD LIGHT ADS INCLUDING A SPOT IN WHICH MEN DRESS UP AS WOMEN TO TAKE ADVANTAGE OF A BAR'S LADIES NIGHT AND THUS IMBIBE BUD LIGHTS AT A CHEAPER PRICE THE THREE RESIGNED IN SEPTEMBER SURPRISING THEIR NEEDHAM EMPLOYERS IT WAS ALWAYS OUR DREAM TO OPEN OUR OWN AGENCY SAYS MR GIER WHO ALSO WORKED AT FALLON MCELLIGOTT IN MINNEAPOLIS AND HAL RINEY & PARTNERS IN SAN FRANCISCO LEAP HOPES TO ANNOUNCE A ROSTER OF CLIENTS NEXT MONTH ITS BUSINESS PLAN CALLS FOR 10 LARGE CLIENTS EACH WITH BILLINGS EXCEEDING 100 MILLION AS WELL AS SMALLER COMPANIES PRIMED FOR RAPID GROWTH ALTHOUGH MR GIER DECLINES TO BE SPECIFIC HE SAYS THE AGENCY IS INVOLVED IN DISCUSSIONS WITH COMPANIES RANGING FROM AUTOMOTIVE TO LIQUOR AS FOR ITS EMPLOYEES LEAP SAYS IT WILL PAY EMPLOYEES A SALARY PLUS INCENTIVE PAY ADDS MR GIER WE'RE GIVING CREATIVE PEOPLE A NEW LEASE ON LIFE FOUR TELEVISION STATIONS OWNED BY PARAMOUNT COMMUNICATIONS ARE PLANNING TO TEST LIVE VIDEOGAME BROADCASTS NEXT WEEK IN WHICH VIEWERS USE TOUCHTONE PHONES TO PLAY VIDEO GAMES ON TV THE HALFHOUR VIDEO GAMES CHALLENGE SHOW IS SET TO AIR DURING THE LATE AFTERNOON MONDAY THROUGH FRIDAY NEXT WEEK ON WTXF IN PHILADELPHIA WDCA IN WASHINGTON DC KTXA IN DALLAS AND KTXH IN HOUSTON VIEWERS BATTLE EACH OTHER EXECUTING COMMANDS WITH THE KEYS ON THEIR TOUCHTONE PHONES IN SUCH GAMES AS COOLSPOT BATTLE TOADS AND BOMBERMAN EACH STATION IS CUSTOMIZING THE SHOW TO INCLUDE A LOCAL PERSONALITY AS HOST AND LOCAL ADVERTISERS AS SPONSORS FOR EXAMPLE BLOCKBUSTER VIDEO STORES IN HOUSTON ARE SPONSORING KTXH'S BROADCAST PROMOTING IT WITH INSTORE COMMERCIALS PARAMOUNT SAID PARAMOUNT SAID IT IS TESTING THE CONCEPT AND TECHNOLOGY VIA AN EXCLUSIVE AGREEMENT WITH TWO COMPANIES INVISIBLE CITIES OF LOS ANGELES AND BIG BAND PRODUCTIONS OF SWEDEN WHICH HAVE BEEN AIRING A SIMILAR PROGRAM IN EUROPE FOR TWO YEARS PIZZA HUT PEPSICO'S PIZZA HUT CHAIN TAPPED OMNICOM GROUP'S GOODBY BERLIN & SILVERSTEIN SAN FRANCISCO TO CREATE ADVERTISING AIMED AT CHILDREN THE NEW ACCOUNT BILLS ABOUT 10 MILLION INDUSTRY EXECUTIVES SAID OMNICOM GROUP'S BBDO REMAINS THE AGENCY ON THE REST OF THE PIZZA HUT HUT ACCOUNT WHICH BILLED 120 MILLION IN 1992 ACCORDING TO COMPETITIVE MEDIA REPORTING BOSTON GLOBE THE BOSTON GLOBE A UNIT OF THE NEW YORK TIMES CO TAPPED BOSTON AGENCY INGALLS QUINN & JOHNSON TO HANDLE ITS ESTIMATED 4MILLION ACCOUNT HANDLED PREVIOUSLY BY HILL HOLLIDAY CONNORS COSMOPULOS FOR 15 YEARS OTHER CONTENDERS WERE ARNOLD FORTUNA LAWNER & CABOT AND HOUSTON EFFLER & PARTNERS OLYMPICS ENDORSEMENT CAMPBELL SOUP CO IS GEARING UP FOR THE OLYMPICS PUTTING OLYMPIC MEDALIST NANCY KERRIGAN IN A NEVER UNDERESTIMATE THE POWER OF SOUP SPOT THAT IS SET TO START AIRING JAN 6 DURING CAPITAL CITIES/ABC INC'S ABC NETWORK BROADCAST OF THE US FIGURE SKATING CHAMPIONSHIPS MS KERRIGAN MADE PROMOTIONAL APPEARANCES FOR CAMPBELL LAST YEAR WE'RE MERCHANDISING THE RELATIONSHIP A BIT MORE NOW A CAMPBELL SPOKESWOMAN SAID 9312220010 931222 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB AT A YEAREND HOLIDAY PARTY THE OTHER DAY REPUBLICAN NATIONAL CHAIRMAN HALEY BARBOUR APPEARED TO BE A JOLLY MAN HE SHOULD BE WHEN HE TOOK OVER THE REPUBLICAN PARTY EARLY THIS YEAR IT WAS IN A SHAMBLES BY YEAR'S END IT HAD WON A SENATE SEAT IN TEXAS RACES FOR MAYOR IN LOS ANGELES AND NEW YORK AND FOR GOVERNOR IN NEW JERSEY AND VIRGINIA AND PICKED UP 21 SEATS IN SPECIAL STATE LEGISLATIVE ELECTIONS AROUND THE COUNTRY IT FACES A DEMOCRATIC ADMINISTRATION THAT AGAIN IS SHOWING A KNACK FOR STUMBLING AS THE INSCRIPTION READ IN THE REPUBLICAN NATIONAL COMMITTEE'S ANNUAL CHRISTMAS CARD REPUBLICANS HAVE HAD A HAPPY HOLIDAY ALL YEAR LONG BUT REPUBLICANS SHOULDN'T GET TOO CARRIED AWAY WITH HOLIDAY GOOD CHEER FOR THEY ALSO HAVE ACCUMULATED A FEW SUBTLE PROBLEMS THIS YEAR HERE ARE FOUR OF THEM SOME GOOD HORSES AREN'T IN THE RACE WHEN THE DEMOCRATS AND BILL CLINTON WERE IN THE DEPTHS OF DESPAIR AND DISREPUTE IN THE MIDDLE OF THE YEAR THE GOP SHOULD HAVE BEEN ABLE TO LURE PRIME CANDIDATES INTO RUNNING IN HIGHPROFILE RACES IN THE 1994 ELECTIONS THAT WILL DETERMINE WHO CONTROLS CONGRESS IN SEVERAL CASES THAT DIDN'T HAPPEN FORMER NEW JERSEY GOV TOM KEAN ISN'T RUNNING FOR THE SENATE MASSACHUSETTS GOV WILLIAM WELD WON'T TRY TO KNOCK TED KENNEDY OUT OF HIS SENATE SEAT DESPITE SOME GOP LEADERS' EFFORTS TERESA HEINZ WIDOW OF FORMER SEN JOHN HEINZ ISN'T IN THE RACE FOR HIS SEAT IN PENNSYLVANIA COMING ON TOP OF LEGAL TROUBLES THAT WILL CLOUD THE REELECTION CAMPAIGN OF TEXAS SEN KAY BAILEY HUTCHISON AND COULD FORCE THE RESIGNATION OF SEN BOB PACKWOOD THE ONCESHINING GOP HOPES OF WIPING OUT DEMOCRATS' SIXSEAT MAJORITY IN THE SENATE HAVE DIMMED I DON'T THINK THE REPUBLICANS WILL GAIN AS MUCH AS THEY THOUGHT THEY WERE GOING TO GAIN SAYS REPUBLICAN THEORIST KEVIN PHILLIPS I THINK THEY'LL PICK UP A COUPLE OF SEATS IN THE SENATE DEMOCRATS ARE LEARNING HOW TO RUN FOR SHERIFF TOO CRIME EVERYBODY SUDDENLY AGREES IS THE HOT NEW ISSUE AND THAT SHOULD BE GREAT NEWS FOR THE GOP FOR MORE THAN A GENERATION THE PUBLIC HAS CONSIDERED REPUBICANS BETTER THAN DEMOCRATS AT HANDLING CRIME YET JUST AS CRIME IS RISING IN IMPORTANCE DEMOCRATS ARE CATCHING UP IN THE PUBLIC'S ESTIMATION IN A WALL STREET JOURNAL/NBC NEWS POLL TAKEN LAST MONTH ONLY SLIGHTLY MORE AMERICANS CITED REPUBLICANS THAN DEMOCRATS AS BETTER ABLE TO HANDLE CRIME NEARLY A QUARTER SAID BOTH PARTIES ARE ABOUT THE SAME IN HANDLING THE ISSUE THE PROBLEM FOR REPUBLICANS IS THAT AMERICANS NOW SEEM TO WANT THE TRADITIONAL GOP PRESCRIPTIONS FOR CRIMEMORE PRISON CELLS TOUGHER SENTENCINGAS WELL AS THE TRADITIONAL DEMOCRATIC PRESCRIPTION OF MORE RESTRICTIONS ON GUNS AND DEMOCRATS NOW HAVE DRIFTED TOWARD THE DEATH PENALTY AND MATCHED REPUBLICANS IN THEIR ENTHUSIASM FOR PUTTING MORE COPS ON THE STREET CRIME IS STILL A GOOD ISSUE FOR THE GOP BUT NOT A GREAT ONE AN INTERNAL HEALTH DEBATE COULD TURN UNHEALTHY EARLIER IN THE YEAR IT SEEMED THAT THE REPUBLICANS WERE WELLPOSITIONED TO ENGAGE IN NEXT YEAR'S ARMWRESTLING OVER HEALTHCARE REFORM THEIR POSITION WOULD BE THAT THEY TOO SAW THE NEED FOR SUBSTANTIAL CHANGES IN THE WAY THE US RUNS AND FINANCES ITS MEDICAL SYSTEM BUT THAT THEY WOULD PROPOSE AN ALTERNATIVE TO THE CLINTONS' GOVERNMENTCENTERED SOLUTION NOW THOUGH PROMINENT REPUBLICANS ARE EXPRESSING DOUBTS ABOUT THE VERY PREMISE OF THAT APPROACH FORMER DEFENSE SECRETARY RICHARD CHENEY FAST EMERGING AS ONE OF THE PARTY'S POWERHOUSES DECLARED IN A SPEECH THIS MONTH I DON'T BELIEVE THERE IS A CRISIS IN OUR HEALTHCARE SYSTEM HE COUNSELED AGAINST ANY KIND OF RADICAL SURGERY THE RISK FOR REPUBLICANS IS THAT THEY FAIL TO SORT OUT THEIR OWN THINKING ABOUT HEALTH CARE AS DOUBTS ABOUT THE CLINTONS' BIG COMPLICATED PLAN ARISE REPUBLICANS SHOULD BE ABLE TO PUT THEIR MARK ON THE DEBATE IT'S NOT CLEAR THAT THEY AGREE WHAT THAT MARK SHOULD BE A SHRINKING ROSS PEROT COULD BE A BIG PEST MR PEROT IS DROPPING FAST IN PUBLIC ESTEEM BUT THERE IS SOME EVIDENCE THAT HE ACTUALLY POSES A BIGGER PROBLEM FOR REPUBLICANS WHEN HE IS DIMINISHED THE PEROT SUPPORTERS WHO PEEL AWAY FIRST TEND TO BE PEOPLE WHO TRADITIONALLY VOTE DEMOCRATIC THE BASE OF SUPPORT THAT REMAINS TENDS TO BE MORE REPUBLICAN MEANING THAT MR PEROT SUCKS AWAY RELATIVELY MORE GOP SUPPORT IN THE NEW JOURNAL/NBC NEWS POLL 42 OF THE REPUBLICANS SURVEYED SAID THEY MIGHT SUPPORT MR PEROT OR AT LEAST CONSIDER DOING SO IF HE RAN FOR PRESIDENT IN 1996 BY CONTRAST JUST 30 OF THE DEMOCRATS VOICED THOSE EXPECTATIONS THIS DOESN'T MEAN THE GOP'S MR BARBOUR SHOULDN'T BE CELEBRATING THIS HOLIDAY SEASON BUT IT DOES MEAN HE CAN'T ASSUME A HAPPY NEW YEAR IN 1994 9312220009 931222 IBM UNIT GETS CONTRACT NEW YORK INTERNATIONAL BUSINESS MACHINES CORP'S INFORMATION TECHNOLOGY UNIT SAID IT SIGNED A 10YEAR 400 MILLION AGREEMENT TO MANAGE COMPUTER SYSTEMS FOR BLUE CROSS & BLUE SHIELD OF NEW JERSEY THE HEALTH INSURER SAID THE AGREEMENT WILL PROVIDE EFFICIENCY AS WELL AS COST SAVINGS BLUE CROSS & BLUE SHIELD INSURES MORE THAN 21 MILLION PEOPLE THE INFORMATION TECHNOLOGY SERVICES WILL BE PROVIDED BY INTEGRATED SYSTEMS SOLUTIONS CORP AN IBM SUBSIDIARY IN WHITE PLAINS NY 9312220008 931222 UNION CAMP'S BUSH BOAKE UNIT WAYNE NJ UNION CAMP CORP SAID IT IS CONSIDERING TAKING ITS BUSH BOAKE ALLEN SUBSIDIARY PUBLIC BUSH BOAKE IS A PRODUCER OF FLAVORS AND FRAGRANCES WITH ANNUAL REVENUE OF 350 MILLION UNION CAMP SAID THE OFFERING IF IT IS MADE MOST LIKELY WILL OCCUR IN THE FIRST HALF OF 1994 UNION CAMP SAID THE OFFERING WILL HIGHLIGHT BUSH BOAKE'S STATUS AS A MAJOR PLAYER IN THE INDUSTRY AND PROVIDE OPPORTUNITIES TO RAISE FUNDS FOR EXPANSION UNION ALSO MANUFACTURES AND SELLS PAPER PAPERBOARD PACKAGING AND WOOD PRODUCTS 9312220007 931222 BROWNER CLEARS PLAN TO CUT CLEANUP COSTS FOR INSURANCE FIRMS WASHINGTON ENVIRONMENTAL PROTECTION AGENCY CHIEF CAROL BROWNER APPROVED A PROPOSAL TO SHARPLY REDUCE THE COST OF HAZARDOUSWASTE CLEANUPS FOR INDIVIDUAL INSURANCE COMPANIES AND POLLUTING BUSINESSES UNDER THE FEDERAL SUPERFUND LAW THE PLAN THE RESULT OF EXTENSIVE STAFF NEGOTIATIONS BETWEEN THE EPA AND THE TREASURY DEPARTMENT NOW GOES TO PRESIDENT CLINTON HE IS EXPECTED TO RECEIVE A REPORT ON THE MATTER THIS WEEK FROM THE WHITE HOUSE OFFICE ON ENVIRONMENTAL POLICY AND THE NATIONAL ECONOMIC COUNCIL TREASURY SECRETARY LLOYD BENTSEN HAS ALREADY APPROVED THE LEGISLATIVE PROPOSAL UNDER THE PLAN THE FEDERAL GOVERNMENT WOULD CREATE A 500 MILLION FUND BY LEVYING A NEW TAX ON INSURANCE COMPANIES THE MONEY WOULD BE USED TO PAY SETTLEMENT FEES TO POLLUTING COMPANIES THAT ARE SUING THEIR INSURERS TO RECOUP COSTS ASSOCIATED WITH SUPERFUND CLEANUPS AT SITES WHERE DUMPING OCCURRED BEFORE DECEMBER 1980 WHEN THE SUPERFUND LAW TOOK EFFECT SEPARATELY THE NATIONAL COMMISSION ON SUPERFUND A PRIVATESECTOR GROUP OF BUSINESS LEADERS AND ENVIRONMENTALISTS CALLED FOR STREAMLINING SUPERFUND THROUGH SUCH METHODS AS CREATING A NEW MEANS FOR ALLOCATING CLEANUP COSTS AND PROHIBITING LAWSUITS BETWEEN POLLUTING BUSINESSES SEEKING TO SHIFT CLEANUP COSTS ELSEWHERE BUT TWO MEMBERS OF THE PANEL DECLINED TO ATTACH THEIR NAMES TO THE REPORT THEY ARE BENJAMIN CHAVIS EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE AND MICHAEL MCINTOSH PRESIDENT OF THE MCINTOSH FOUNDATION WHICH CONTRIBUTED 400000 TO THE EFFORT IN INTERVIEWS MR CHAVIS AND MR MCINTOSH SAID THEY FELT THAT THE PLAN DIDN'T GO FAR ENOUGH IN ALTERING THE SUPERFUND LAW'S CURRENT LIABILITY ARRANGEMENT 9312220006 931222 ABREAST OF THE MARKET INDUSTRIALS DECLINE 1006 POINTS PULLED DOWN BY BLUECHIP STOCKS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK BLUECHIP ISSUES WHICH HELPED LIFT THE DOW JONES INDUSTRIAL AVERAGE A BIT MONDAY REVERSED COURSE AND PUSHED THE BIG BOARD BELLWETHER INDEX MODERATELY LOWER THE INDUSTRIAL AVERAGE FELL 1006 POINTS OR 027 TO 374515 ANTHONY CONROY MANAGING DIRECTOR OF EQUITIES AT MABON SECURITIES SAID TWO STOCKS MINNESOTA MINING & MANUFACTURING DOWN 2 TO 110 AND ALUMINUM CO OF AMERICA DOWN 1 1/4 TO 68 3/8 LOPPED ABOUT FIVE POINTS OFF THE BAROMETER LATE MONDAY ALCOA SAID IT WILL INCUR A CHARGE OF 702 MILLION OR 80 CENTS A SHARE AGAINST FOURTHQUARTER EARNINGS FOR SEVERANCE COSTS ASSOCIATED WITH PERMANENT REDUCTIONS OF HOURLY AND SALARIED EMPLOYEES MAINLY IN THE COMPANY'S US ALUMINUM OPERATIONS BUT AS THE BIG BOARD ADVANCEDECLINE SHOWED LARGER COMPONENTS OF THE INDUSTRIAL AVERAGE DIDN'T DO ALL THE DAMAGE NEW YORK STOCK EXCHANGE GAINERS TRAILED LOSERS 876 TO 1211 BIG BOARD VOLUME ROSE TO 266580000 SHARES FROM 249930000 MONDAY BROADER INDEXES SUCH AS THE STANDARD & POOR'S 500STOCK INDEX AND THE NYSE COMPOSITE INDEX EASED SLIGHTLY BUT WERE WELL ABOVE THEIR SESSION LOWS THE NASDAQ COMPOSITE INDEX ALSO DROPPED FALLING 452 POINTS OR 059 TO END AT 75563 AFTER GYRATING WILDLY DURING THE AFTERNOON BECAUSE OF THE INADVERTENT INCLUSION OF CONVERTIBLE DEBENTURE PRICES IN THE INDEX THOUGH NASDAQ HAD CORRECTED THE CLOSING PRICE OF THE INDEX BY LATE AFTERNOON A NASDAQ SPOKESMAN SAID INVESTORS SHOULD DISREGARD THE TRADING RANGES AND THE HIGHS AND LOWS FOR THE INDEX RETAILERS DREW SELLERS FOR A SECOND STRAIGHT DAY THE JOHNSON REDBOOK REPORTED THAT SALES AT THE NATION'S RETAILERS IN THE THIRD WEEK OF DECEMBER FELL A SEASONALLY ADJUSTED 17 FROM NOVEMBER JC PENNEY SEARS ROEBUCK AND BEST BUY ALL FELL MORE THAN A POINT NORDSTROM OF SEATTLE CEDED 1 1/2 TO 31 3/4 ON THE NASDAQ STOCK MARKET QVC NETWORK INC OF WEST CHESTER PA FELL 1 1/2 TO 42 ON NASDAQ AS REPORTED IN YESTERDAY'S WALL STREET JOURNAL QVC RAISED ITS BID FOR PARAMOUNT COMMUNICATIONS BY 2 A SHARE TO 92 FOR 51 OF PARAMOUNT'S SHARES QVC'S OFFER TOPS A BID BY RIVAL VIACOM PARAMOUNT LOST 1 3/4 TO 80 1/4 AND VIACOM OF DEDHAM MASS GAINED 5/8 TO 49 7/8 ON THE AMERICAN STOCK EXCHANGE IN OTHER ACQUISITION NEWS FIBREBOARD A CONCORD CALIF LUMBER AND PLYWOOD MAKER ROSE 1 3/4 TO 33 1/2 AFTER THE CLOSE MONDAY MINNEAPOLIS SECURITIES FIRM CRP 3000 WHICH IS HEADED BY MINNESOTA TWINS BASEBALL FRANCHISE OWNER CARL R POHLAD SAID IT MAY SEEK CONTROL OF FIBREBOARD VALUE HEALTH SLID ANOTHER POINT TO 27 5/8 AFTER FALLING 2 7/8 MONDAY AFTER MONDAY'S CLOSE THE COMPANY SAID THE DROP IN ITS SHARE PRICE MAY HAVE BEEN RELATED TO UNFOUNDED RUMORS RELATED TO ITS CONTINUING CONTRACT DISCUSSIONS WITH FORD MOTOR FORD ROSE 2 TO 64 3/4 THE OTHER MAJOR AUTO MAKERS ALSO MOVED HIGHER CHRYSLER EDGED UP 1/4 TO 54 1/8 AND GENERAL MOTORS IMPROVED 5/8 TO 54 7/8 MERRILL LYNCH GLOBAL SECURITIES ANALYST HARVEY HEINBACH RAISED HIS 1993 EARNINGS ESTIMATE FOR FORD BY 15 CENTS A FULLY DILUTED SHARE TO 390 HE INCREASED HIS 1994 PROJECTION TO 650 A FULLY DILUTED SHARE FROM 6 MR HEINBACH RAISED HIS INTERMEDIATETERM RATING ON GM TO ABOVE AVERAGE FROM NEUTRAL AND MAINTAINED HIS LONGTERM ABOVE AVERAGE RECOMMENDATIONS HE INCREASED HIS FOURTHQUARTER AND FULLYEAR EARNINGS PROJECTIONS FOR THE COMPANY MCDONNELL DOUGLAS RETREATED 3 1/8 TO 106 3/8 AFTER SAYING IT EXPECTS TO RECORD A CHARGE AGAINST PRETAX EARNINGS OF ABOUT 450 MILLION IN THE FOURTH QUARTER IN THE FOURTH QUARTER OF 1992 THE COMPANY REPORTED EARNINGS FROM CONTINUING OPERATIONS OF 80 MILLION OR 204 A SHARE THE COMPANY SAID IT HAS ACCEPTED WITH CLARIFICATIONS A PROPOSAL FROM THE DEFENSE DEPARTMENT ON AN OVERALL BUSINESS SETTLEMENT OF A VARIETY OF ISSUES CONCERNING THE C17 CARGO JET PROGRAM SEVERAL LEADING COMPUTER COMPANIES LOST AT LEAST A POINT INCLUDING COMPAQ COMPUTER AND APPLE COMPUTER ON NASDAQ BORDEN LED THE BIG BOARD MOST ACTIVE LIST FOR THE SECOND CONSECUTIVE SESSION WITH 38 MILLION SHARES ABOVE THE 933782 SHARES THAT CHANGE HANDS DAILY ON AVERAGE BORDEN'S STOCK PRICE EDGED UP 1/2 TO 19 1/8 AFTER THE WALL STREET JOURNAL REPORTED YESTERDAY THAT HANSON PLC WHICH FELL 1/4 TO 20 1/8 IS CONSIDERING MAKING AN OFFER FOR BORDEN MABON'S MR CONROY SAID TWO WAVES OF PROGRAM SELLING YESTERDAY MORNING AND WEAKER BOND PRICES FOR MUCH OF THE DAY PUSHED EQUITIES INTO NEGATIVE TERRITORY EARLY STOCKS WEREN'T ABLE TO RECOVER FROM THE INITIAL SLIDE MR CONROY SAID THE 30YEAR TREASURY BOND HAD BEEN DOWN MORE THAN 1/2 POINT IN INTRADAY TRADING WITH ITS YIELD UP TO ABOUT 634 AHEAD OF YESTERDAY'S FEDERAL OPEN MARKET COMMITTEE MEETING MANY ANALYSTS HAD SAID THE POLICYMAKING BODY MIGHT ADOPT A BIAS TOWARD CREDIT TIGHTENING FROM ITS RECENT NEUTRAL STANCE BUT RATES FELL FOLLOWING THE SUCCESSFUL SALE OF TWOYEAR NOTES AT THE TREASURY'S NOTE AUCTION AND THE LONG BOND FINISHED THE DAY ONLY MILDLY LOWER WITH ITS YIELD AT 631 A BUY PROGRAM MINUTES BEFORE THE CLOSE ALLOWED THE INDUSTRIAL AVERAGE TO RECOUP ABOUT FIVE POINTS FROM A 16POINT DEFICIT MR CONROY SAID THE LIQUIDITY HERE IS SO LIGHT HE SAID ANY BUYING OR SELLING HAS THE EFFECT OF A BULL IN A CHINA SHOP BARRY BERMAN HEAD TRADER AT ROBERT W BAIRD & CO SAID HE STILL EXPECTS STOCKS TO WORK THEIR WAY HIGHER BY YEAR END AS INVESTORS ADJUST THEIR PORTFOLIOS BUT HE DOESN'T EXPECT A SHARP CLIMB THE MARKET'S PERFORMANCE TODAY WASN'T A DISASTER MR BERMAN SAID BUT IT WASN'T THE YEAREND RALLY WE'RE LOOKING FOR EITHER 9312220005 931222 REVIEW & OUTLOOK EDITORIAL OUT IN THE COLD LOOK AT VIRTUALLY ANY FISCAL COMPARISON OF THE 50 STATES FORGETTING THE DISTRICT OF COLUMBIA WHICH IS TRULY IN A CLASS BY ITSELF AND ALASKA STANDS OUT AS THE BIG SPENDER IT'S NOW A CASE STUDY IN THE PAIN OF KICKING THE PUBLICSPENDING HABIT ALASKA'S STATE AND LOCAL GENERAL EXPENDITURES AS A PERCENTAGE OF STATE PERSONAL INCOME ARE TWO AND HALF TIMES THE US AVERAGE THE STATE AND LOCAL GOVERNMENT PAYROLL ALSO MEASURED AGAINST PERSONAL INCOME IS ABOUT TWICE THE US AVERAGE THIS STATE OF AFFAIRS WAS MADE POSSIBLE BY THE GREAT NORTH SLOPE OIL BOOM THAT BEGAN IN THE 1970S BUT THE GAME SUDDENLY APPEARS TO BE UP ALASKA BANKED ON SELLING ITS OIL AT MORE THAN 18 A BARREL AND THAT PRICE HAS PLUMMETED TO BELOW 11 IT GOES FOR ABOUT 3 A BARREL LESS THAN THE FREQUENTLY QUOTED SAUDI LIGHT PRICE BECAUSE IT IS OF LESSER QUALITY AND THE EXTRACTION AND SHIPPING COSTS ARE MUCH HIGHER WITH OIL REVENUES ACCOUNTING FOR 85 OF THE STATE'S OPERATING BUDGET THIS CONTRIBUTES TO A GAPING HOLE GOVERNOR WALTER HICKEL HAS FROZEN STATE HIRING WHICH IS OBVIOUSLY NOT NOTHING IN THE ALASKAN CONTEXT BUT SOMETHING MORE IS GOING TO BE NEEDED UNLESS OIL PRICES SPIKE BACK UP IN HIS BUDGET FOR THE NEW FISCAL YEAR UNVEILED LAST WEEK HE PROPOSES TO SLICE HALF OFF STATE GRANTS TO MUNICIPALITIES BUT RELIES PRIMARILY ON NEW TAXES A TRIPLING OF THE FUEL LEVY AN INCREASE IN FISHERY ROYALTIES AND A 100 TAX ON EVERY EMPLOYED PERSON IN ALASKA THIS STATE'S RESIDENTS MIGHT SEEM ABLE TO ABSORB A FEW BLOWS THERE'S NO INCOME TAX IN FACT EVERY ALASKAN GETS AN EGALITARIAN ANNUAL OIL DIVIDEND OF ALMOST 1000 BUT SURELY SECOND THOUGHTS ARE IN ORDER ABOUT THE PUBLICWORKS BINGE OF RECENT YEARS JUST AS RECONSIDERATION HAS ALREADY BEEN GIVEN THE ENORMOUSLY GENEROUS ENTITLEMENTS OFFERED TO LONGTIME AND ELDERLY INHABITANTS IN PARTICULAR AS PART OF AN EFFORT OVER THE PAST DECADE TO PULL IN THE SPENDING REINS A BIT THE LONGEVITY BONUS TO SENIORS 250 A MONTH JUST FOR LIVING IN ALASKA IS BEING PHASED OUT THE EXISTENCE OF THIS BENEFIT HELPED ATTRACT AN INFLUX OF ELDERLY TO THE STATE AND THE COURTS HAVE LIMITED THE ABILITY TO DISTINGUISH OLDTIMERS FROM NEWCOMERS LIKEWISE RICH MEDICAID BENEFITS AND STATEPAID NURSING CARE FOR THOSE LUCKY ENOUGH TO GET INTO PIONEER HOMES HAVE BEEN GIVEN LIMITS BUT THE BIGGEST MONEY IS IN EDUCATION INCLUDING THE EFFORTS TO EXTEND MODERN FACILITIES TO THE NATIVE PEOPLES IN RURAL VILLAGES WELL OVER 10 OF THE STATE'S POPULATION HOW MUCH OF THIS CAPITAL AND OPERATING COST EXPLOSION IS NECESSARY TO MEET THE SOCIAL COMMITMENT BY ALASKANS IS LIKELY TO BE AT ISSUE THE SAME WITH SEWERS AND WATER A MASSIVE ELECTRIC INTERTIE SYSTEM MEANWHILE HAS BEEN UNDERTAKEN WITH THE INTERESTS OF URBAN DWELLERS SUPPOSEDLY IN MIND AS THE LODE FROM PRUDHOE BAY DISSIPATES ALASKA PROBABLY NEEDS TO BE WINDING DOWN ITS EXPENDITURES RATHER THAN RUNNING THEM UP ACCORDING TO REPUBLICAN STATE SENATOR RICK HALFORD THE FEDERAL GOVERNMENT OF COURSE HASN'T MADE ECONOMIC GROWTH A REAL OPTION FOR ALASKANS BECAUSE IT HAS REMOVED MUCH OF THE STATE'S ACREAGE FROM ECONOMIC ACTIVITY IN THE NAME OF PRESERVATION ALASKA IS LIKELY TO REMAIN A WORLD APART FROM THE LOWER 48 BUT WITH ITS FISCAL PICTURE SO SHAPED BY ONE SOFT COMMODITY MARKET THE DAYS OF JUBILEE COME AND GO TO AN EXTENT THE STATE LEARNED AFTER THE MID1980S OIL CRASH TO DISCIPLINE ITSELF WITH ITS RESERVE FUNDS BUT STILL THE TEMPTATION IS GREAT IN FLUSH YEARS EVEN IF OIL RECOVERS THIS LATEST SCARE SHOULD BE A REMINDER TO ALL AMERICANS THAT A WINDFALL NATURAL OR OTHERWISE IS BEST NOT TREATED AS THE FUNDING MECHANISM FOR AN ONGOING PUBLIC PARTY 9312220004 931222 TECHNOLOGY DELL COMPUTER MULLS A PACT WITH SONY FOR NOTEBOOK PCS A WALL STREET JOURNAL NEWS ROUNDUP DELL COMPUTER CORP IS NEGOTIATING TO HAVE SONY CORP MANUFACTURE NOTEBOOKSIZE PERSONAL COMPUTERS WHICH WOULD BE SOLD UNDER THE DELL BRAND NAME A SONY OFFICIAL WHO ASKED NOT TO BE IDENTIFIED SAID AN AGREEMENT HASN'T YET BEEN REACHED BUT HE CONFIRMED A REPORT IN WEDNESDAY'S NIHON KEIZAI SHIMBUN NEWSPAPER WHICH SAID THE TWO COMPANIES WERE CONSIDERING AN AGREEMENT SUCH A PACT WOULD FILL GAPING HOLES FOR BOTH STRUGGLING CORPORATIONS DELL BASED IN AUSTIN TEXAS LACKS A PRODUCT IN THE RAPIDLY GROWING NOTEBOOK SEGMENT A COSTLY GAP SINCE PORTABLE COMPUTERS INCLUDING NOTEBOOKS ARE THE FASTEST GROWING SEGMENT OF THE COMPUTER BUSINESS SONY THE TOKYOBASED CONSUMER ELECTRONICS CONCERN HAS FAILED IN REPEATED ATTEMPTS TO BREAK INTO THE PC MARKET SONY'S EARNINGS HAVE BEEN FLAGGING IN PART BECAUSE THE COMPANY'S TRADITIONAL AUDIO AND VIDEO MARKETS ARE SATURATED A SONY SPOKESMAN IN TOKYO ALSO REFUSED TO DISCUSS THE REPORT BUT HE NOTED THAT SONY HAS LONG SUPPLIED COMPONENTS SUCH AS DISK DRIVES AND MONITORS TO DELL OVER THE PAST YEAR AS DELL HAS WORKED TO REPAIR ITS NOTEBOOK LINE OTHER COMPANIES LIKE COMPAQ COMPUTER CORP NEC CORP AND INTERNATIONAL BUSINESS MACHINES CORP HAVE ENJOYED SURGING NOTEBOOK DEMAND OVER THE SAME PERIOD DELL REPORTED ITS FIRST QUARTERLY LOSS EVER IN THE SECOND FISCAL QUARTER AND A 58 DROP IN EARNINGS IN THE THIRDQUARTER 9312220003 931222 CHRISTIES SOTHEBY'S HAD 10 RISE IN SALES OF ART DURING 1993 NEW YORK ART SALES AT AUCTION HOUSES CHRISTIES INTERNATIONAL PLC AND SOTHEBY'S HOLDINGS INC ROSE 10 IN 1993 ANOTHER SIGNAL THAT THE THREEYEAR ARTMARKET RECESSION IS OVER SOTHEBY'S REPORTED STRONG GAINS IN SALES OF JEWELRY AND IMPRESSIONIST AND MODERN PAINTINGS CHINESE ART ANTIQUE FURNITURE AND JEWELRY WERE MONEYMAKERS FOR LONDONBASED CHRISTIE'S COMBINED THE AUCTION HOUSES SOLD 242 BILLION OF ART JEWELRY ANTIQUES AND COLLECTIBLES IN 1993 UP FROM LAST YEAR'S 219 BILLION THE ART MARKET HAS ENJOYED RENEWED MOMENTUM PARTICULARLY THIS FALL SAID SOTHEBY'S PRESIDENT MICHAEL AINSLIE BUOYANT SALES HAVE LED THE COMPANY'S OFFICIALS TO HAVE MORE CONFIDENCE AND OPTIMISM IN THE ART MARKET THAN WE HAVE EXPERIENCED IN SOME TIME HE SAID DURING THE YEAR 88 ARTWORKS AND GEMS SOLD FOR MORE THAN 1 MILLION EACH UP FROM 51 ITEMS FETCHING THAT MUCH IN 1991 AT THE NADIR OF THE MARKET NEW YORKBASED SOTHEBY'S REPORTED THAT SALES FOR 1993 ROSE 17 TO 132 BILLION FROM 113 BILLION IN 1992 MORE NOTABLY FALL SALES WERE UP 24 FROM A YEAR EARLIER SALES OF IMPRESSIONIST AND MODERN PAINTINGS OFTEN THE COMPANY'S MOST LUCRATIVE SALES AREA ROSE 71 IN 1993 AT CHRISTIE'S THE GAINS WEREN'T AS STRIKING BUT SALES WERE UP 3 TO 110 BILLION FROM 106 BILLION IN STERLING CHRISTIE'S HOME CURRENCY THE GAIN WAS 14 SALES FOR THE FALL ALONE WERE UP 9 FROM A YEAR EARLIER AND WERE CHRISTIE'S MOST LUCRATIVE FALL SALES SINCE 1989 THE COMPANY SAID CHRISTIE'S SALES OF CHINESE ART AND JEWELRY THE TWO FASTESTGROWING SECTORS OF THE ART MARKET WERE UP 40 AND 53 RESPECTIVELY OVER YEAREARLIER LEVELS 9312220002 931222 INSIDE TRACK TWO GOOD GUYS EXECUTIVES SOLD SHARES AFTER UPGRADE BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL WHEN A BIG WALL STREET FIRM LIKE GOLDMAN SACHS RECOMMENDS A SMALL NARROWLY FOLLOWED STOCK IT MIGHT BE EXPECTED THAT INSIDERS AT THE COMPANY WOULD LOAD UP ON THE SHARES NOT SO AT GOOD GUYS INC A CALIFORNIABASED CONSUMERELECTRONICS RETAILER TWO SENIOR INSIDERS SOLD HEAVILY THE VERY DAY GOLDMAN SACHS UPGRADED THE STOCK ON NOV 29 GOLDMAN RAISED ITS STANCE ON THE STOCK FROM MODERATE OUTPERFORMER TO TRADING BUY OR THE BROKERAGE'S EQUIVALENT OF AN OPPORTUNISTIC SHORTTERM PURCHASE NOT WASTING A MOMENT GOOD GUY CHAIRMAN RONALD UNKEFER UNLOADED 211000 SHARES OR 58 OF HIS DIRECT HOLDINGS THAT DAY AT AN AVERAGE PRICE OF 1402 A SHARE SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW MR UNKEFER WHO HELD MORE THAN 17 MILLION SHARES AT THE END OF 1992 HAS BEEN WINDING DOWN HIS HOLDINGS AND HAD LAST SOLD HEAVILY IN THE FIRST QUARTER OF 1993 ALSO ON NOV 29 WILLIAM CURLEY GOOD GUYS' VICE PRESIDENT FOR MANAGEMENT INFORMATION DUMPED ALL OF HIS 2046 DIRECTLY HELD SHARES AT AN AVERAGE PRICE OF 1450 MR UNKEFER AND MR CURLEY BOTH DECLINED TO COMMENT ON THEIR STOCK SALES OR THE TIMING OF THE SALES THE GOLDMAN RECOMMENDATION PUSHED THE STOCK UP NEARLY 9 TO 14375 THE DAY OF THE OFFICERS' SALES ON VOLUME OF 1150000 SHARES OR NEARLY NINE TIMES THE DAILY AVERAGE THE SHARES THEN REACHED A 52WEEK HIGH OF 16 A FEW DAYS LATER BEFORE DRIFTING DOWN IN THE NEXT TWO WEEKS TO ABOUT 14 THAT WAS STILL WELL ABOVE LATE SEPTEMBER'S LEVEL OF AROUND 950 THEN ON DEC 14 OR A LITTLE OVER TWO WEEKS AFTER ITS RATINGS UPGRADE GOLDMAN REVERSED ITSELF AND CUT THE RATING BACK TO MODERATE OUTPERFORMER THE MOVE LOPPED TWO POINTS OR 145 OFF GOOD GUYS' SHARE PRICE ON THE DAY TO 1175 THE SECURITIES FIRM SAID PROSPECTS FOR A NEARTERM IMPROVEMENT WERE LESS CERTAIN AT THE BRISBANE CALIF COMPANY GOOD GUYS CLOSED YESTERDAY AT 12875 ON THE NASDAQ STOCK MARKET INDEED THE COMPANY'S OUTLOOK APPEARS UNCERTAIN ANALYSTS SAY WHILE THE RETAILER ENDED ITS FISCALFOURTH QUARTER IN SEPTEMBER ON A STRONG NOTE BESTING EARNINGS ESTIMATES OF SEVEN CENTS A SHARE BY THREE CENTS IT FACES WHAT MANY INDUSTRY WATCHERS EXPECT WILL BE A MAJOR COMPETITIVE THREAT ON ITS HOME TURF IN CALIFORNIA FROM A BIGGER CONSUMERELECTRONICS RETAILER MINNEAPOLISBASED BEST BUY CO BEST BUY WHICH IN ITS LAST FISCAL YEAR HAD ROUGHLY THREE TIMES THE 552 MILLION ANNUAL SALES OF GOOD GUYS IS WIDELY EXPECTED TO ESTABLISH OPERATIONS IN SOUTHERN CALIFORNIA SOMETIME LATE NEXT YEAR OR IN EARLY 1995 GOOD GUYS HAS 44 STORES IN CALIFORNIA AND ONE IN NEVADA IT CERTAINLY IS GOING TO BE MORE COMPETITIVE BEST BUY IS ANOTHER MAJOR NATIONALTYPE PLAYER WITH VERY LOW OPERATING EXPENSES AND VERY AGGRESSIVE PRICING AND STOREEXPANSION STRATEGIES SAYS EDWIN UNDERWOOD AN ANALYST WITH SCOTT & STRINGFELLOW IN RICHMOND VA SOME ANALYSTS THINK GOOD GUYS' CONCENTRATION IN THE CALIFORNIA MARKET IS A PLUS AS A TURNAROUND PLAY ON A REGIONAL ECONOMY THAT IS SHOWING SIGNS OF COMING OUT OF A MAJOR SLUMP AND THAT THE COMPANY CAN HANDLE EXTRA COMPETITION IN ITS CORE AREA OF RETAIL BRANDNAME CONSUMER ELECTRONICS LEWIS H ALTON MANAGING PARTNER AT LH ALTON & CO AN INVESTMENT BANK IN SAN FRANCISCO SAYS GOOD GUYS HAS JUST ROLLED OUT ITS FIRST SELECTION OF HOME COMPUTERS INCLUDING APPLE COMPAQ AND IBM PCS AND THAT THE MOVE SHOULD BOOST SAMESTORE SALES AND PROFITS NEXT YEAR DESPITE CONTINUING PRESSURE ON PC PROFIT MARGINS THEY'VE REPLACED SOME OF THE SLOWERMOVING OFFICE PRODUCTS WITH COMPUTERS SAYS MR ALTON AS A RESULT REVENUE AND PROFIT PER SQUARE FOOT OF SELLING SPACE WILL IMPROVE OVER THE NEXT FOUR QUARTERS HE PREDICTS ADDING PC VOLUME IS GOING TO BE HUGE OVER THE NEXT FEW YEARS AS MULTIMEDIA SYSTEMS TAKE OFF MR ALTON ACKNOWLEDGES HOWEVER THAT BOTH BEST BUY AND ANOTHER EVEN BIGGER COMPETITOR CIRCUIT CITY STORES INC INTRODUCED LINES OF HOME COMPUTERS MONTHS AHEAD OF GOOD GUYS CIRCUIT CITY ALREADY HAS A MAJOR PRESENCE IN CALIFORNIA WITH MORE THAN 25 STORES IN THE GREATER LOS ANGELES AREA ALONE THIS YEAR CIRCUIT CITY IS EXPECTED TO GENERATE SALES OF 4 BILLION ANALYSTS SAY GOOD GUYS COULD BENEFIT FROM A DECISION EARLIER THIS YEAR BY MACY'S TO SUBSTANTIALLY NARROW ITS OFFERINGS OF BIGTICKET CONSUMER ELECTRONIC PRODUCTS IN ITS CALIFORNIA MARKET THE RECENT RISE IN LONGTERM BOND YIELDS HAS NOT DETERRED INSIDERS IN INTERESTRATE SENSITIVE SECTORS FROM BUYING STOCK IN THEIR RESPECTIVE COMPANIES IF ANYTHING WHEN STOCKS REACTED NEGATIVELY TO THE RECENT INTERESTRATE SCARE INSIDERS BOUGHT THE BARGAINS ESPECIALLY IN THE REGIONAL BANKS SAYS BOB GABELE PRESIDENT OF CDA/INVESTNET A FORT LAUDERDALE FLA COMPANY THAT TRACKS INSIDER ACTIVITY THIS POINTS TO A CONTINUED LOWINFLATION SLOWGROWTH SCENARIO HE SAYS EVEN AT ELECTRIC UTILITIES WHOSE SHARE PRICES USUALLY SUFFER DISPROPORTIONATELY IN TIMES OF RISING INTEREST RATES INSIDER BUYING HAS KEPT PACE MR GABELE NOTES THE SECTOR RECENTLY ROSE TO THE THIRDHIGHEST RANK IN CDA/INVESTNET'S MODEL OF INSIDER BUYING ACTIVITY FROM FIFTH PLACE IN EARLY NOVEMBER THRIFT INSTITUTIONS AND SOUTHERNBASED REGIONAL BANKS WERE THE TOP TWO CATEGORIES OTHER STRONG INSIDERBUYING SECTORS INCLUDED REAL ESTATE INVESTMENT TRUSTS LIFE AND PROPERTYCASUALTY INSURERS AND GAS UTILITIES CDA/INVESTNET DATA SHOW ON THE FLIP SLIDE INSIDERS AT RETAIL STORES CONSUMER SPECIALITY COMPANIES AND APPAREL RETAILERS HAVE TURNED MORE BEARISH THE DATA SHOW THERE'S BEEN A LACK OF FOLLOWTHROUGH IN THE BUYING THAT WE NOTICED LAST MONTH IN THE CONSUMER SECTOR SAYS MR GABELE 9312220001 931222 S&P LOWERS RATING ON DEBT FINANCING SCHOOLS IN CHICAGO BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STANDARD & POOR'S CORP LOWERED ITS RATING ON DEBT ISSUED BY THE AGENCIES THAT FINANCE CHICAGO SCHOOLS BECOMING THE SECOND MAJOR RATING CONCERN TO EXPRESS CONCERNS ABOUT THE EMBATTLED SCHOOL SYSTEM'S PATCHEDTOGETHER FUNDING EFFORT AND THE ABSENCE OF A LONGTERM SOLUTION THE RATING CONCERN LOWERED ITS RATING ON THE CHICAGO SCHOOL FINANCE AUTHORITY'S 6594 MILLION IN GENERALOBLIGATION DEBT TO DOUBLEAMINUS FROM DOUBLEA ADDITIONALLY THE 56 MILLION IN GENERALOBLIGATION DEBT ISSUED BY THE CHICAGO BOARD OF EDUCATION WAS MARKED DOWN TO TRIPLEBMINUS THE LOWEST INVESTMENT GRADE FROM TRIPLEB THE DOWNGRADE IN THE BOARD OF EDUCATION'S DEBT REFLECTS THE BOARD'S USE OF MORE THAN 400 MILLION IN BONDS TO BE ISSUED THROUGH THE CHICAGO SCHOOL FINANCE AUTHORITY TO FUND A BIG SHORTAGE IN THE BUDGET FOR FISCAL 1994 WHICH BEGAN SEPT 1 AND AN ANTICIPATED GAP IN FISCAL 1995 THE BONDS ARE EXPECTED TO GO TO MARKET IN LATE WINTER THE BOARD'S PRACTICAL AND POLITICAL PROBLEMS CONTINUE TO PERSIST NOT THE LEAST OF WHICH IS THE LACK OF A CURRENT PLAN TO ADDRESS CONTINUING OPERATING GAPS BEYOND FISCAL 1995 S&P SAID MOODY'S INVESTORS SERVICE INC EARLIER THIS WEEK MARKED DOWN THE BOARD OF EDUCATION'S DEBT TO A BELOWINVESTMENTGRADE BAA FROM BA CITING SIMILAR CONCERNS OVER WHAT IT CALLED CONVENIENT BUT TEMPORARY FIXES TO A PERSISTENT PROBLEM MOODY'S ALSO MARKED DOWN THE FINANCE AUTHORITY'S GENERALOBLIGATION DEBT TO BAA1 FROM SINGLEA THE SCHOOL SYSTEM'S FUNDING PROBLEMS SURFACED MOST RECENTLY LAST AUTUMN WHEN SCHOOLS WERE TEMPORARILY CLOSED BECAUSE A BALANCED BUDGET PLAN COULDN'T BE STRUCK IN NOVEMBER A SHORTTERM RESOLUTION WAS REACHED WHEN THE STATE LEGISLATORS WHO HAD BEEN UNWILLING TO ALLOT MORE MONEY TO THE SYSTEM FINALLY GRANTED THE CHICAGO SCHOOL FINANCE AUTHORITY CLEARANCE TO ISSUE 427 MILLION IN DEFICITREDUCTION BONDS TO FILL BUDGET GAPS FOR FISCAL '94 AND '95 AS PART OF THAT PACKAGE THE FINANCE AUTHORITY'S OVERSIGHT AND CONTROL POWERS OVER THE BOARD OF EDUCATION WERE ENHANCED A MOVE THAT S&P SAID YESTERDAY MEANT THAT THE FINANCE AUTHORITY'S PREVIOUS INSULATION FROM ANY OF THE BOARD'S OPERATIONAL RESPONSIBILITIES HAS BEEN BROKEN S&P SAID IT DOESN'T EXPECT THE PROJECTED 300 MILLION BUDGET GAP FOR THE CITY'S SCHOOL SYSTEM IN 1996 WILL SIMILARLY HAVE TO BE PLUGGED THROUGH LONGTERM DEBT INSTEAD IT SAID IT HOPES ALL PARTIES WILL WORK TO PROVIDE THE CITY'S BOARD OF EDUCATION WITH A SOLID FUNDING BASE THE RATING CONCERN ADDED THAT RELIANCE ON SUCH ONESHOT SOLUTIONS CAN ONLY EXACERBATE AN ALREADY TENUOUS SITUATION AND EMBED THE DEFICITS FURTHER INTO THE BOARD'S FINANCIAL FRAMEWORK THE SCHOOL FINANCE AUTHORITY REACTED ANGRILY TO MOODY'S DOWNGRADE EARLIER THIS WEEK CALLING IT AN UNSUPPORTABLE AND JUDGMENTAL ACTION THAT IT WILL SEEK TO HAVE REVIEWED YESTERDAY HOWEVER IT REITERATED THE STRENGTH OF THE SECURITY FOR ITS GENERALOBLIGATION BONDS OUTSTANDING AND SAID THAT IT FEELS THERE'S NO LIKELIHOOD OF FAILURE TO MAKE TIMELY PAYMENT OF PRINCIPAL AND INTEREST ON ITS OUTSTANDING DEBT IT ALSO SAID THE PENDING BOND ISSUE WHICH WILL BE ISSUED UNDER A SEPARATE INDENTURE FROM THE EXISTING DEBT WILL BE STRUCTURED TO PROVIDE THE EXCEPTIONAL SECURITY FEATURES THAT ARE THE HALLMARK OF PRIOR AUTHORITY BONDS SOUNDING MORE CONCILIATORY THE FINANCE AUTHORITY'S CHAIRMAN MARTIN J KOLDYKE ADDED THAT THE AGENCY HAS NOTED THE SERIOUSNESS OF THE OBSERVATIONS MADE BY THE TWO RATING CONCERNS AND CALLED FOR STATE AND LOCAL AUTHORITIES TO HELP FORGE A REASONABLE LONGRANGE STRATEGIC FINANCIAL PLAN 9312220109 931124 WHAT'S NEWS WORLDWIDE CONGRESS DELAYED ADJOURNMENT BECAUSE OF A STALEMATE OVER THE BRADY BILL BARRING AN AGREEMENT THIS MORNING THE SENATE'S DEMOCRATIC LEADERSHIP WILL SUMMON LAWMAKERS TO RETURN NEXT WEEK IN A BID TO FORCE ACTION ON THE WHITE HOUSEBACKED BILL IMPOSING A WAITING PERIOD FOR HANDGUN PURCHASES IN OTHER ACTION CONGRESS APPROVED BILLS THAT WOULD STRENGTHEN REGULATION OF THE GOVERNMENT SECURITIES MARKET AND PROTECT INVESTORS IN LIMITED PARTNERSHIP ROLLUPS PROVIDE 183 BILLION TO THE THRIFTS CLEANUP AND EXTEND A JOBLESSBENEFITS BILL SENATE MINORITY LEADER DOLE OUTLINED AN ALTERNATIVE TO THE BRADY BILL THAT HE PLANS TO SUBMIT SAYING THERE IS A BIPARTISAN EFFORT TO MAKE THIS A BETTER BILL THE DOOR WILL BE OPEN TO A NEW US RELATIONSHIP WITH NORTH KOREA CLINTON SAID IF THAT NATION ENDS ITS NUCLEAR ARMS PROGRAM AND HONORS ITS PLEDGES TO ADHERE TO ANTIPROLIFERATION ACCORDS THE US PLANS TO OFFER ITS IDEAS TODAY TO NORTH KOREA AT A MEETING IN NEW YORK THE FCC VIOLATED THE FIRST AMENDMENT GUARANTEE OF FREE SPEECH WHEN IT BANNED INDECENT TV BROADCASTING BETWEEN 6 AM AND MIDNIGHT A FEDERAL APPEALS COURT RULED THE REGULATION WAS ADOPTED EARLIER THIS YEAR BY THE FCC AT THE DIRECTION OF CONGRESS CLINTON'S DEPUTY CHIEF OF STAFF IS CLOSE TO ACCEPTING A JOB WITH THE US TELEPHONE ASSOCIATION A LOBBYING GROUP FOR PHONE FIRMS ROY NEEL'S LIKELY MOVE COMES AS A SECOND KEY WHITE HOUSE AIDE HOWARD PASTER IS PLANNING TO RETURN TO THE PRIVATE SECTOR PASTER IS CLINTON'S CHIEF CONGRESSIONAL LOBBYIST CIGARETTE PACKAGES WOULD WARN THAT SMOKING CAN KILL YOU AND TOBACCO ADVERTISING WOULD BE BANNED IN MOVIES STADIUMS AND OTHER PLACES WHERE YOUNG PEOPLE GATHER UNDER AN ADMINISTRATIONBACKED BILL INTRODUCED IN THE HOUSE WE MUST USE EVERY MEANS TO PROTECT OUR CHILDREN SURGEON GENERAL ELDERS TOLD A NEWS CONFERENCE LONGDELAYED UN AID CONVOYS HEADED TO CENTRAL BOSNIA TO DELIVER FOOD AND RELIEF SUPPLIES TO HUNDREDS OF THOUSANDS OF CIVILIANS UN OFFICIALS SAID THEY WERE CONFIDENT THE TWO CONVOYS WOULD REACH THEIR DESTINATION TODAY THOUGH THERE WAS NO GUARANTEE THAT LOCAL MILITARY COMMANDERS WOULD ALLOW THE TRUCKS TO PROCEED ITALY'S PRIME MINISTER TRIED TO RESTORE CALM TO MARKETS AS INVESTORS PUMMELED THE LIRA TO RECORD LOWS AND DEPRESSED THE STOCK MARKET IN SUNDAY'S LOCAL ELECTIONS THE GOVERNING COALITION WAS LEFT WITH A 15 SHARE OF POPULAR SUPPORT CLINTON LIFTED THE REMAINING US SANCTIONS AGAINST SOUTH AFRICA AND SAID HE WAS SENDING A DELEGATION THERE TO EXPLORE INVESTMENT OPPORTUNITIES IN THE BLACK PRIVATE SECTOR THE MEASURE THAT CLINTON SIGNED URGES STATE AND LOCAL GOVERNMENTS TO LIFT THEIR OWN CURBS NOW THAT SOUTH AFRICA IS ON THE ROAD TO DEMOCRACY CHANCELLOR KOHL'S COALITION AGREED TO DROP ITS PLAN TO TAX PROPERTY THAT IS BEING RETURNED TO OWNERS AFTER ITS CONFISCATION BY THE NAZIS OR THE COMMUNISTS IN THE FORMER EAST GERMANY INSTEAD THE COALITION IS PLANNING TO ISSUE GOVERNMENT BONDS TO FINANCE THE COMPENSATION ISRAEL AGREED TO INCLUDE THE ISSUE OF THE RELEASE OF PALESTINIAN PRISONERS IN A WRITTEN ACCORD ON ISRAELI WITHDRAWAL FROM THE GAZA STRIP AND JERICHO A PLO AIDE SAID IN CAIRO THE PLO HAD WARNED IT WOULDN'T SIGN THE ACCORD ON THE WITHDRAWAL DUE TO START DEC 13 UNLESS ISRAEL GAVE A WRITTEN COMMITMENT TO FREE THE 10000 POLITICAL PRISONERS UKRAINE HAS ABANDONED ITS PROMISE TO BECOME A NONNUCLEAR STATE AND THE US MUST GET THE KIEV GOVERNMENT TO REVERSE ITS COURSE A GROUP OF ARMS ANALYSTS SAID IN WASHINGTON THE PRIVATE ARMS CONTROL ASSOCIATION SAID THE US SHOULD WEIGH STEPS TO PUT PRESSURE ON PRESIDENT KRAVCHUK A BRITISH FIGHTER JET CRASHED WHILE PATROLLING THE UNIMPOSED NOFLY ZONE OVER NORTHERN IRAQ BRITAIN'S MINISTRY OF DEFENSE SAID THE PILOT EJECTED WITH MINOR INJURIES AND WAS PICKED UP BY A US RESCUE PLANE FOUR SOMALI GUNMEN AMBUSHED TWO UNMARKED VEHICLES CARRYING UN RELIEF WORKERS AND LOCAL GUARDS WOUNDING AN AMERICAN WOMAN AND TWO SOMALIS A UN MILITARY SPOKESMAN SAID THE INCIDENT APPEARED TO BE A CASE OF BANDITRY SEE RELATED LETTER LETTERS TO THE EDITOR STOP PROTECTING CIGARETTE MAKERS WSJ DEC 22 1993 9311240008 YY93 MM12 9312220102 930907 LEISURE & ARTS BOOKSHELF HOW WE BEAT TB BY JEROME E GROOPMAN AIDS HAS SHATTERED OUR COMFORTABLE ILLUSION THAT EPIDEMICS CAPABLE OF DECIMATING COMMUNITIES ON A GLOBAL SCALE WERE SCOURGES OF THE PAST THE VICTORY OVER TUBERCULOSIS IN THE MIDDLE OF THIS CENTURY LULLED MOST PEOPLE INTO THE BELIEF THAT THE BAD OLD DAYS WERE OVER IT IS ESTIMATED THAT A BILLION PEOPLE DIED FROM TUBERCULOSIS DURING THE 19TH AND 20TH CENTURIES THE DISCOVERY OF CERTAIN POTENT ANTIBIOTICS THAT CHANGED THIS DISEASE FROM A DEBILITATING AND OFTEN FATAL CONDITION TO A SIMPLE CURABLE INFECTION SEEMED TO IMPLY THAT NO PATHOGEN WOULD BE BEYOND THE CONTROL OF MODERN MEDICAL SCIENCE IN THE PAST DECADE HOWEVER THE SPREAD OF HIV HAS PUT EPIDEMIC BACK INTO OUR WORKING VOCABULARIES AND TB HAS RESURFACED IN A NEW AND GENERALLY LETHAL STRAIN THESE TERRIBLE EVENTS MAKE FRANK RYAN'S THE FORGOTTEN PLAGUE LITTLE BROWN 480 PAGES 2095 A HIGHLY ENGAGING LUCID ACCOUNT OF THE CONQUEST OF TB BOTH TIMELY AND UPLIFTING DR RYAN A FELLOW OF THE ROYAL ACADEMY OF PHYSICIANS COGENTLY PRESENTS THE PASSIONS AND POLITICAL FORCES SHAPING MEDICINE AND SOCIETY IN EUROPE AND THE US AT A TIME WHEN RESEARCHERS WERE COMPETING TO CURE THE SCOURGE OF THEIR TIME HE IS PARTICULARLY EFFECTIVE IN CAPTURING THE NATURE OF THE SCIENTIFIC METHOD ONEROUS INCREMENTAL ADVANCES AT THE LABORATORY BENCH RATHER THAN SUDDEN BREAKTHROUGHS MOREOVER HE SHOWS HOW MEDICAL DISCOVERIES LARGELY EVOLVE WITHIN THE FRAMEWORK OF AN APPRENTICESHIP SYSTEM WHEREIN SENIOR RESEARCHERS PASS ON KNOWHOW AND IDEAS TO THEIR JUNIOR ACOLYTES WHO THEN STRIVE TO IMPROVE UPON THEIR INHERITANCE AND OUTSHINE THEIR MENTORS THE PERSONAL MOTIVATIONS THAT ARE CHANNELED INTO THE MONOMANIA THAT LABORATORY RESEARCH DEMANDS ARE PARTICULARLY WELLEXPLORED IN THIS VOLUME THE VICTORY OVER TUBERCULOSIS REFLECTED NOT ONLY THE TRIUMPH OF MODERN SCIENCE OVER A DEVASTATING ILLNESS BUT THE ENERGY AND STRIVING OF JEWISH IMMIGRANTS TO PROVE THEMSELVES TO THE SCIENTIFIC ARISTOCRACY DR RYAN VIVIDLY DESCRIBES HOW ZOLMAN ABRAHAM WAKSMAN BORN IN 1888 IN A LITTLE TOWN ABOUT 200 MILES FROM KIEV MADE HIS WAY TO AMERICA WHERE HE TRANSFORMED HIMSELF INTO SELMAN WAKSMAN AND WON THE NOBEL PRIZE FOR CURING TB THE SCIENTIFIC LADDERCLIMBING OF IMMIGRANTS SUCH AS WAKSMAN PROVOKED CONSIDERABLE JEALOUSY AND RESENTMENT BUT ALSO DEMONSTRATED THAT IN AMERICA SCIENCE WOULD EVOLVE AS A MERITOCRACY RATHER THAN ALONG OLDREGIME BLOODLINES THIS WORKED TO EVERYONE'S ADVANTAGE IN THE END BUT MOST PARTICULARLY AS THE NAZIS FORCED GIFTED SCIENTISTS TO FLEE TO THE US WHERE THEY CONTRIBUTED THEIR SKILLS AND ENERGIES TO THE EFFORT TO CURE TUBERCULOSIS THE DECISION OF THE NOBEL COMMITTEE TO AWARD THE PRIZE IN MEDICINE AND PHYSIOLOGY FOR THE DISCOVERY OF THE TREATMENT OF TB ONLY TO WAKSMAN BYPASSING THE GERMAN RESEARCHER JORGEN LEHMANN WHOSE WORK WAS CONDUCTED UNDER THE NAZI REGIME WAS SURELY MEANT TO SUGGEST THAT LEHMANN'S SCIENTIFIC ACHIEVEMENT HAD BEEN TAINTED BY FASCISM TUBERCULOSIS HAD NOT BEEN CURED BY ONE DRUG IT HAD TAKEN TWO DRUGS IN COMBINATION DISCOVERED AT ALMOST PRECISELY THE SAME MOMENT IN TIME TO GIVE SUFFERERS EVEN A MODEST HOPE OF A CURE DR RYAN EXPLAINS THOSE TWO DRUGS WERE STREPTOMYCIN AND PARAAMINOSALICYLIC ACID OR PAS STREPTOMYCIN HAD BEEN DISCOVERED BY ALBERT SCHWARTZ WORKING UNDER THE DIRECT INSTRUCTION AND SUPERVISION OF SELMAN WAKSMAN AND AS A RESULT OF A SUSTAINED RESEARCH PROGRAMME THAT WAS WAKSMAN'S BRAINCHILD PAS HAD BEEN DISCOVERED AS A RESULT OF JORGEN LEHMANN'S CREATIVE GENIUS AND SYNTHESIZED BY THE CHEMICAL BRILLIANCE OF KARL ROSDAHL WHILE IN THE UNITED STATES NOBODY DOUBTED THAT WAKSMAN WOULD EITHER RECEIVE THE PRIZE OR SHARE IT IN GOTHENBURG EVERYBODY REGARDED IT AS A FOREGONE CONCLUSION THAT JORGEN LEHMANN WOULD ALSO SHARE IT CLOSE TO THE TIME OF THE ANNOUNCEMENT LEHMANN RECEIVED A COURTEOUS TELEGRAM FROM WAKSMAN CONGRATULATING HIM IN ANTICIPATION OF THEIR SHARING THE PRIZE BUT WHEN ON 23 OCTOBER THE COMMITTEE OF THE CAROLINE INSTITUTE MADE THEIR FORMAL ANNOUNCEMENT IT WAS TO DECLARE THAT SELMAN WAKSMAN ALONE HAD BEEN AWARDED THE NOBEL PRIZE IN MEDICINE OR PHYSIOLOGY FOR 1952 ON A MORE PURELY SCIENTIFIC LEVEL THE RACE TO FIND A CURE FOR TUBERCULOSIS WAS A PIONEERING CASE OF COLLABORATION BETWEEN UNIVERSITY LABORATORIES AND THE PHARMACEUTICAL INDUSTRY LONG BEFORE THERE WAS ANY ASSURANCE OF COMMERCIAL SUCCESS MERCK & CO TOOK A RISK AND MADE A CHARITABLE CONTRIBUTION OF THE THEN EXPENSIVE AND RELATIVELY SCARCE STREPTOMYCIN LAYING THE GROUNDWORK FOR PIVOTAL CLINICAL TRIALS THAT ULTIMATELY PROVED ITS EFFICACY DR RYAN'S BOOK IS GRATIFYING LATESUMMER READING WRITTEN AT THE PACE OF A MYSTERY THRILLER AND STYLED AS A PSYCHODRAMA YET REMARKABLY ACCURATE IN SCIENTIFIC DETAIL FOR THOSE WHO WISH TO UNDERSTAND THE EVOLUTION OF INFECTIOUS CHALLENGES TO THE PUBLIC HEALTH AND THE SCIENTIFIC INFRASTRUCTURE BUILT TO COMBAT THEM THE FORGOTTEN PLAGUE PROVIDES HISTORICAL LESSONS TO REMEMBER DR GROOPMAN IS CHIEF OF THE DIVISION OF HEMATOLOGY/ONCOLOGY AT THE NEW ENGLAND DEACONESS HOSPITAL AND HOLDS THE DINA AND RAPHAEL RECANATI CHAIR IN IMMUNOLOGY AT HARVARD MEDICAL SCHOOL SEE RELATED LETTER LETTERS TO THE EDITOR JORGEN LEHMANN'S WORK NOT TAINTED BY NAZISM WSJ DEC 22 1993 9309070025 YY93 MM12 9312210178 931221 RUSSIA REACHES DEAL ON EXPORTING URANIUM TO US BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RUSSIA CAN EXPECT TO EXPORT AN ADDITIONAL 200 MILLION OF URANIUM TO THE US AS A RESULT OF A NEW TRADE DEAL US OFFICIALS SAID UNDER THE AGREEMENT RUSSIAN AND US COMPANIES WILL SUPPLY US UTILITIES WITH NATURAL AND SLIGHTLY ENRICHED URANIUM TO SERVE AS FUEL IN NUCLEAR REACTORS THE CLINTON ADMINISTRATION HAS BEEN SEARCHING FOR WAYS TO BUILD UP RUSSIAN EXPORTS AND THUS BOLSTER THE GOVERNMENT OF RUSSIAN PRESIDENT BORIS YELTSIN BUT THOSE EFFORTS HAVE BROUGHT COMPLAINTS FROM DOMESTIC COMPANIES THAT VIEW LOWPRICED RUSSIAN GOODS AS UNFAIR COMPETITION UNDER THE URANIUM DEAL NEGOTIATED RECENTLY IN MOSCOW RUSSIA WILL BE ENTITLED TO SHIP AS MUCH AS 66 MILLION POUNDS OF NATURAL URANIUM AND TWO MILLION UNITS OF SLIGHTLY ENRICHED URANIUM TO US UTILITIES ANY SHIPMENTS HOWEVER WOULD HAVE TO BE MATCHED ON A ONETOONE BASIS BY US SUPPLIERS US UTILITIES WOULD PAY WORLD MARKET PRICES FOR THE URANIUM US OFFICIALS SAID THAT'S ABOUT 10 A POUND FOR NATURAL URANIUM AND 82 FOR A UNIT OF SLIGHTLY ENRICHED URANIUM BUT UNDER THE TWOYEAR PACT PROCEEDS OF THE SALES WOULD BE SPLIT SO THAT US SUPPLIERS ARE PAID HIGHER THAN WORLD PRICES FOR THEIR SHARE WHILE RUSSIAN COMPANIES RECEIVE LOWER THAN WORLD PRICES RUSSIA ACCEPTED THAT ARRANGEMENT BECAUSE IT OPENS A BROADER MARKET IN THE US FOR THEIR PRODUCTS UNDER THE ARRANGEMENT RUSSIA COULD ADD AS MUCH AS 230 MILLION IN EXPORTS US OFFICIALS ESTIMATED THE URANIUM ACCORD AMENDS A PREVIOUS AGREEMENT BETWEEN THE US AND RUSSIA SIGNED IN OCTOBER 1992 IN WHICH THE US DROPPED CHARGES THAT RUSSIA WAS DUMPING URANIUM ON THE US MARKET AT UNFAIRLY LOW PRICES RUSSIA HAS COMPLAINED SINCE THEN THAT IT HADN'T BEEN ABLE TO GAIN A BIG SHARE OF THE US MARKET 9312210177 931221 WHO'S NEWS BOWNE & CO BOWNE & CO NEW YORK RICHARD R WEST 55 YEARS OLD PROFESSOR OF FINANCE AND FORMER BUSINESSSCHOOL DEAN AT NEW YORK UNIVERSITY WAS NAMED A DIRECTOR OF THIS FINANCIALPRINTING CONCERN EFFECTIVE JAN 15 FILLING A VACANCY ON THE 10MEMBER BOARD 9312210176 931221 WHO'S NEWS AMERICAN GENERAL CORP AMERICAN GENERAL CORP HOUSTON MICHAEL G ATNIP 45 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT SPECIAL PROJECTS AT THIS INSURANCE COMPANY EFFECTIVE JAN 1 MR ATNIP WAS SENIOR VICE PRESIDENT INSURANCE AND ADMINISTRATION FOR AMERICAN GENERAL'S CONSUMER FINANCE SUBSIDIARY 9312210175 931221 PROPERTY TRUST ACQUISITION SANTA FE NM PROPERTY TRUST OF AMERICA SAID IT BOUGHT 15 MULTIFAMILY RESIDENTIAL PROPERTIES IN TEXAS FOR 1218 MILLION PROPERTY TRUST SAID 14 OF THE PROPERTIES WERE ACQUIRED FROM MAXXAM INC WHICH LAST WEEK SAID IT RECEIVED ABOUT 114 MILLION FOR THOSE PROPERTIES MAXXAM HADN'T DISCLOSED THE IDENTITY OF THE BUYER THE 15 PROPERTIES ARE IN SAN ANTONIO DALLAS AND AUSTIN 9312210174 931221 WHO'S NEWS FCA INTERNATIONAL LTD FCA INTERNATIONAL LTD NAMED JOHN MOYNAN PRESIDENT SUCCEEDING W EDWIN JARMAIN WHO BECOMES CHAIRMAN MARK S LUBOTTA FORMERLY CHAIRMAN BECOMES MANAGING DIRECTOR RESPONSIBLE FOR THE UK DIVISION OF THIS BILLCOLLECTION COMPANY 9312210173 931221 WHO'S NEWS BECTON DICKINSON & CO BECTON DICKINSON & CO FRANKLIN LAKES NJ ROSEMARY MEDE 45 YEARS OLD WAS NAMED VICE PRESIDENT HUMAN RESOURCES OF THIS MEDICAL SUPPLIES AND DIAGNOSTICS MANUFACTURER SUCCEEDING JAMES WESSEL 51 WHO BECOMES PRESIDENT OF THE COMPANY'S RADIOIMMUNOASSAY DIVISION 9312210172 931221 WHO'S NEWS POWERSOFT CORP POWERSOFT CORP BURLINGTON MASS FRANK INGARI PRESIDENT OF SHIVA CORP WAS NAMED A DIRECTOR OF THIS SOFTWARE FIRM EXPANDING THE BOARD TO EIGHT MEMBERS 9312210171 931221 WHO'S NEWS BACHMAN INFORMATION SYSTEMS INC BACHMAN INFORMATION SYSTEMS INC BURLINGTON MASS JOHN J ALEXANDER PRESIDENT OF BUSINESS TECHNOLOGY CONSULTING INC AND ROBERT E DAVOLI PRESIDENT OF EPOCH SYSTEMS INC WERE NAMED DIRECTORS OF THIS SOFTWARE PRODUCER THEY SUCCEED E FLOYD KVAMME AND CHRISTOPHER J SPRAY VENTURE CAPITALISTS WHO RESIGNED TO FOCUS ON OTHER BUSINESSES 9312210170 931221 WHO'S NEWS TEXTRON INC TEXTRON INC PROVIDENCE RI H JESSE ARNELLE 59 YEARS OLD AND SENIOR PARTNER OF ARNELLE & HASTIE A SAN FRANCISCO LAW FIRM WAS NAMED A DIRECTOR OF THIS AEROSPACE COMMERCIAL PRODUCTS AND FINANCIAL SERVICES CONCERN THE MOVE EXPANDS THE BOARD TO 16 9312210169 931221 WHO'S NEWS WOLVERINE TUBE INC WOLVERINE TUBE INC DECATUR ALA THIS MAKER OF COPPER TUBES NAMED THREE NEW DIRECTORS EXPANDING THE BOARD TO NINE MEMBERS THEY ARE DONALD C BLASIUS 64 YEARS OLD RETIRED PRESIDENT OF WHITE CONSOLIDATED INDUSTRIES INC JOHN L DUNCAN 60 PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MURRAY OHIO MANUFACTURING CO AND ANGUS A MACNAUGHTON 62 PRESIDENT OF GENSTAR INVESTMENT CORP 9312210168 931221 WHO'S NEWS AMERICAN STOCK EXCHANGE AMERICAN STOCK EXCHANGE NEW YORK JOSEPH B STEFANELLI 55 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF DERIVATIVE SECURITIES OF THIS STOCK EXCHANGE SUCCEEDING IVERS RILEY 62 NAMED CHIEF EXECUTIVE OFFICER OF THE HONG KONG FUTURES EXCHANGE 9312210167 931221 VIETNAM GIVES MOBIL GOAHEAD FOR OIL SEARCH AWARD MARKS US FIRM'S FIRST VENTURE SINCE '75 BAN ON OUTPUT REMAINS BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL MOBIL CORP WON THE RIGHT TO EXPLORE FOR OIL IN THE BLUE DRAGON FIELD OFF THE COAST OF VIETNAM THE FIRST US COMPANY TO DRILL IN THAT COUNTRY SINCE THE END OF THE WAR ALONG WITH THREE JAPANESE COMPANIES MOBIL SIGNED A LETTER OF INTENT TO EXPLORE IN THE SOUTH CHINA SEA 175 MILES SOUTHEAST OF HO CHI MINH CITY MOBIL IS RETURNING TO AN AREA WHERE IT EXPLORED FOR OIL IN THE 1970S IN WHAT WAS THEN SOUTH VIETNAM THE COMPANY ABANDONED DRILLING IN THE SPRING OF 1975 AS THE THENCAPITAL SAIGON WAS FALLING UNDER COMMUNIST CONTROL THE US STILL ENFORCES AN 18YEAROLD TRADE EMBARGO AGAINST VIETNAM ALTHOUGH THE SANCTIONS HAVE BEEN EASED AMID PRESSURE FROM A NUMBER OF US INDUSTRIES SEEKING TO DO BUSINESS THERE THEY CLAIM THEY ARE AT A DISADVANTAGE AGAINST FOREIGN COMPETITORS THAT CAN DO BUSINESS IN VIETNAM SINCE 1988 VIETNAM HAS LEASED MORE THAN 40 MILLION ACRES OFF ITS COAST FOR OIL EXPLORATION TO ABOUT TWO DOZEN GROUPS OTHER SPOTS THAT MOBIL HAD PINPOINTED OFF THE VIETNAM COAST IN THE 1970S BUT DIDN'T GET A CHANCE TO DEVELOP HAVE SINCE TURNED OUT TO BE MAJOR FIELDS CONTAINING SEVERAL HUNDRED MILLION BARRELS OF OIL EACH ONE OF THOSE THE BIG BEAR FIELD IS CURRENTLY BEING DEVELOPED BY AUSTRALIA'S BROKEN HILL PROPRIETARY CO MOBIL SAID IT STILL CAN'T PARTICIPATE IN COMMERCIAL DEVELOPMENT IN VIETNAM BUT RECEIVED A LICENSE FROM THE TREASURY DEPARTMENT'S OFFICE OF FOREIGN ASSETS CONTROL TO DO EVERYTHING BUT THE COMPANY SAID THE LICENSE ALLOWS IT TO PERFORM PREPARATORY WORK BEFORE DRILLING INCLUDING SEISMIC SURVEYS AND TO DRILL EXPLORATORY WELLS IF THOSE WELLS STRIKE OIL THE COMPANY CAN ALSO DRILL APPRAISAL WELLS TO DETERMINE THE SIZE OF ANY FIELD IN FAIRFAX VA A MOBIL SPOKESMAN SAID IT COULD TAKE SEVERAL YEARS TO DETERMINE IF THE BLUE DRAGON PROSPECT HOLDS LARGE AMOUNTS OF OIL AND WHETHER IT WAS READY TO BEGIN PRODUCTION WHICH ISN'T ALLOWED UNDER THE CURRENT EMBARGO MOBIL SAID IT HOPES RELATIONS BETWEEN THE US AND VIETNAM IMPROVE BY THEN WE HOPE THAT BY THE TIME WE'RE READY TO DO BUSINESS THE POLITICAL RELATIONSHIPS WILL HAVE BEEN RESOLVED THE SPOKESMAN SAID THE COMPANY ALSO HOPES OIL PRICES WILL BEGIN TO RECOVER BY THEN FROM THEIR CURRENT FIVEYEAR LOWS THIS IS A LONGTERM BUSINESS THE SPOKESMAN SAID NOTING THAT LARGE FIELDS CAN PRODUCE OIL FOR DECADES INDEED WHILE SOME INDUSTRY EXECUTIVES BELIEVE PRICES COULD REMAIN DEPRESSED FOR A YEAR OR MORE OTHERS ARE OPTIMISTIC THAT PRICES WILL INCREASE POSSIBLY SHARPLY IN THE SECOND HALF OF THE 1990S VIETNAM CURRENTLY PRODUCES ABOUT 120000 BARRELS OF OIL A DAY MOST OF IT COMES FROM THE WHITE TIGER FIELD WHICH MOBIL DISCOVERED IN LATE 1974 BUT COULDN'T DEVELOP VIETNAM EXPORTS MUCH OF THE OIL FROM WHITE TIGER TO JAPAN AT THE BEHEST OF VIETNAM THE GROUP LED BY MOBIL BID ON THE BLUE DRAGON PROSPECT IN OCTOBER AND WAS AWARDED A 725 INTEREST IN THE BLOCK MOBIL HAS A 50 INTEREST IN THE GROUP JAPAN PETROLEUM EXPLORATION CO 25 INDONESIA PETROLEUM LTD 15 AND NISSHO IWAI CORP 10 THE REMAINING INTEREST IN THE BLOCK IS HELD BY THE STATE OIL CONCERN PETROVIETNAM AT 15 AND A RUSSIAN COMPANY ZARUBEJINEFT AT 125 IT IS BELIEVED THAT ABOUT A HALFDOZEN OTHER GROUPS INCLUDING ONE THAT INCLUDED EXXON CORP OF IRVING TEXAS ALSO BID TO EXPLORE IN THE BLUE DRAGON FIELD AN EXXON SPOKESMAN CONFIRMED THAT THE COMPANY WAS A BIDDER IN CHICAGO AN AMOCO CORP SPOKESMAN SAID THAT COMPANY EVALUATED THE AREA BUT CHOSE NOT TO BID OTHER BIDDERS ARE BELIEVED TO HAVE INCLUDED ROYAL DUTCH/SHELL GROUP WITH HEADQUARTERS IN LONDON AND THE HAGUE AND FRANCE'S TOTAL SA OFFICIALS OF THOSE COMPANIES WEREN'T AVAILABLE TO COMMENT 9312210166 931221 12 DAYS OF CHRISTMAS MONKS SPREAD CHRISTMAS SPIRITS SPIKED CAKE AND BOURBON FUDGE BY ALECIA SWASY STAFF REPORTER OF THE WALL STREET JOURNAL MONKS AT THE ABBEY OF GETHSEMANI CELEBRATE THE SEASON WITH SOME UNUSUAL TRAPPINGS SPIKED FRUITCAKE AND BOURBON FUDGE THE 145YEAROLD MONASTERY IN TRAPPIST KY SELLS THE LIQUORLACED GOODIES THROUGH ITS MAILORDER BUSINESS BUT THE BROTHERS' SALES PRACTICES ARE SACRILEGIOUS TO MOST RETAILERS THEY LIMIT SALES TO JUST ENOUGH CAKES CANDY AND CHEESE TO PAY THE BILLS AT THE ABBEY HOME TO 75 MONKS WE MAKE A LIVING NOT A KILLING EXPLAINS BROTHER CHRISTIAN A 20YEAR MONK WHO IS SALES MANAGER OF THE MONASTERY'S CATALOG SALES OF ABOUT 2 MILLION COULD EASILY SOAR TO 10 MILLION HE SAYS BUT WE DON'T WANT TO MAKE A FACTORY THE MONKS SELL ABOUT 40000 CAKES A YEAR WHICH START AT 17 FOR THE TWOANDAHALFPOUND SIZE THE CAKE IS CHEERED EVEN BY CRITICS I DON'T LIKE FRUITCAKE BUT I LIKE THIS ONE SAYS SARAH FRITSCHNER FOOD EDITOR AT THE LOUISVILLE COURIERJOURNAL THE MOIST CAKE ISN'T FOR A TIMID PERSON BECAUSE THERE'S A GREAT AMOUNT OF BOURBON IN THE CAKE SHE FIGURES BROTHER CHRISTIAN WON'T OFFER SPECIFICS NOTING IT'S A SECRET RECIPE DEMAND FOR THE SPIKED CAKES WAS SUFFICIENT PROOF THAT SHOPPERS WOULD BUY 925 BOXES OF BOURBON FUDGE INSPIRED BY A LOCAL DENTIST'S RECIPE PHILLIP NALLY WHO HAS A DENTAL PRACTICE ABOUT 12 MILES FROM THE MONASTERY SAYS SALES HAVE CLIMBED BECAUSE OF DIVINE MARKETING IF A MONK SELLS SOMETHING EVERYBODY THINKS IT'S JUST FINE HE SAYS THE FUDGE TRADE HELPS HIS PRACTICE TOO HE GIVES AWAY ABOUT 50 POUNDS A YEAR PEOPLE NEVER TURN IT DOWN HE SAYS THE MONKS OFFER STILL ANOTHER CHRISTMAS GIFT THREE TO FIVEDAY RESPITES IN ONE OF THE GETHSEMANI'S RETREAT HOUSE ROOMS THEY CAN STAY LONGER AND GET THEIR THOUGHTS AND LIVES TOGETHER BROTHER CHRISTIAN NOTES THERE'S NO SET FEE FOR THE VISITS ONLY DONATIONS SO THE ROOMS OFTEN HAVE A YEARLONG WAITING LIST BUT A MONK'S LIFE ISN'T FOR SYBARITES THERE'S NO TELEVISION OR RADIO AND BREAKFAST IS SERVED AT 315 AM GUESTS AREN'T REQUIRED TO RISE THEN BROTHER CHRISTIAN SAYS UNLESS THE BELLS DRIVE THEM CRAZY 9312210165 931221 ENTERPRISE FINANCING SMALL BUSINESS MASSACHUSETTS PROVIDES FUND FOR HIGHTECH STARTUPS BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL MASSACHUSETTS OFFERS HIGHTECH STARTUPS A 15 MILLION LOAN FUND ALTHOUGH TECHNOLOGY STARTUPS HAVE NEVER HAD AN EASY TIME FINDING FINANCING THEIR BORROWING POWER HAS DIMINISHED EVEN MORE IN RECENT YEARS AS BANKS SHARPLY CUT LENDING TO BUDDING BUSINESSES THAT'S PARTLY WHY MASSACHUSETTS GOV WILLIAM WELD LAST YEAR PROPOSED A FUND THAT WOULD GUARANTEE PRIVATE FINANCING TO HIGHTECH COMPANIES THE EMERGING TECHNOLOGY LOAN FUND WHICH WON LEGISLATIVE APPROVAL EARLIER THIS YEAR EXPECTS TO ISSUE ITS FIRST GUARANTEES WITHIN THE NEXT FEW WEEKS WHILE THE FUND ITSELF WON'T LOAN ANY MONEY IT WILL GUARANTEE LOANS FROM PRIVATE BANKS TO QUALIFIED HIGHTECH STARTUP FIRMS THE GUARANTEES WILL COVER LOANS UP TO 50 OF A PROJECT'S COST OR 5 MILLION WHICHEVER IS LESS THE MASSACHUSETTS GOVERNMENT LAND BANK WHICH IS MANAGING THE FUND SAYS IT EXPECTS INITIALLY TO GUARANTEE ABOUT 50 MILLION IN NEW LOANS BANKERS SAY THEIR BIGGEST PROBLEM IN LENDING TO SMALL HIGHTECH COMPANIES HAS BEEN IN THE AREA OF LEASEHOLD IMPROVEMENTS SUCH AS BUILDING A NEW LABORATORY YOU'RE LENDING ON AN UNSECURED BASIS IF THE BORROWER DEFAULTS THERE IS LITTLE THERE THAT WILL HELP YOU GET YOUR MONEY BACK SAYS KENNETH WILCOX SENIOR VICE PRESIDENT OF SILICON VALLEY BANK IN WELLESLEY HILLS MASS THUS MANY COMPANIES INVOLVED IN BIOTECHNOLOGY ENVIRONMENTAL ENGINEERING AND ADVANCED MATERIALS DEVELOPMENT HAVE BEEN FORCED TO EAT INTO THEIR EQUITY TO EXPAND FACILITIES OR NOT EXPAND AT ALL BY OBTAINING GUARANTEED LOANS FOR FACILITY DEVELOPMENT AND CONSTRUCTION THESE SMALL FIRMS CAN USE THEIR EQUITY FOR PRODUCT AND SERVICE DEVELOPMENT AND NOT TIE IT UP IN FACILITIES SAYS KARL SEIDMAN DEPUTY DIRECTOR OF THE LAND BANK HE HOPES THE NEW LOAN GUARANTEES WILL ENCOURAGE MORE HIGHTECH COMPANIES TO REMAIN IN MASSACHUSETTS THE HIGH COST OF DOING BUSINESS AND THE PAUCITY OF FINANCING HAVE RECENTLY CAUSED A MASS EXODUS OF HIGHTECH STARTUPS FROM SOME LEADING INDUSTRIAL STATES SUCH AS NEW YORK INTERACTIVE MEDIA STARTUP FIRMS GET THEIR OWN FINANCING VEHICLE UNTERBERG HARRIS A SAN FRANCISCO INVESTMENT CONCERN SAYS IT HAS PUT TOGETHER A 25 MILLION FUND THAT WILL FINANCE A RANGE OF STARTUPS IN THE BURGEONING INTERACTIVE MEDIA FIELD INCLUDING SOFTWARE DEVELOPERS TECHNOLOGY DESIGNERS AND ONLINE NEWS AND SHOPPING SERVICES THE INVESTMENT CONCERN WANTS TO TAP INTO EXCITEMENT CREATED BY SUCH HIGHLY VISIBLE STARTUPS AS GENERAL MAGIC INC AND 3DO CO AS WELL AS THE POPULARITY OF VIDEO GAMES AND CDROM SOFTWARE UNTERBERG HARRIS PLANS TO INVEST IN COMPANIES THAT HAVE PRODUCTS NOW EXPLAINS ANDREW KESSLER A MANAGING PARTNER THE FUND ALREADY HAS INVESTED 3 MILLION IN SEVEN SMALL COMPANIES DURING THE PAST THREE MONTHS THEY INCLUDE TRILOBYTE INC A MEDFORD ORE DEVELOPER OF SOFTWARE FOR CDROM AND KIDSOFT INC A LOS GATOS CALIF PUBLISHER OF AN ELECTRONIC MAGAZINE AND CATALOG FOR CHILDREN TRILOBYTE SAYS ITS FIRST CDROM PROGRAM AN INTERACTIVE MURDER MYSTERY CALLED 7TH GUEST HAS SOLD 350000 COPIES SINCE ITS INTRODUCTION IN APRIL INTERACTIVE MEDIA SUCH AS 7TH GUEST GENERATE MORE EXCITEMENT THAN DOES INTERACTIVE TEXT MR KESSLER SAYS THE IDEA THAT YOU CAN PUSH A BUTTON AND CHANGE THE VIDEO YOU'RE SEEING IS MUCH MORE REVOLUTIONARY THAN THE ABILITY TO MANIPULATE TEXT HE ADDS MOST YOUNG INTERACTIVE MEDIA BUSINESSES CAN FINANCE THEMSELVES AFTER AN EARLY INFUSION OF CAPITAL MR KESSLER SAYS ADDING THAT UNLIKE MANUFACTURERS THEY DON'T NEED TO BUILD A MANUFACTURING PLANT OR EVEN SALES CHANNELS PRESIDENT CLINTON'S BILLION DOLLAR CHECK IS IN THE MAIL DURING HIS PRESIDENTIAL BID LAST YEAR MR CLINTON PROMISED 1 BILLION TO BOOST THE LENDING CAPACITY OF BANKS CREDIT UNIONS AND OTHER FINANCIAL INSTITUTIONS THAT HELP SUPPORT SMALL BUSINESSES AND COMMUNITYREVITALIZATION PROJECTS CONGRESS HOWEVER HAS YET TO APPROPRIATE A DIME NOW CONCERNS ARE STARTING TO SURFACE AS TO WHETHER ANY MONEY WILL FIND ITS WAY INTO FINANCING DEVELOPMENT FOR LOWINCOME NEIGHBORHOODS LAST MONTH THE HOUSE BANKING COMMITTEE PASSED A REVISED VERSION OF PRESIDENT CLINTON'S PLAN BUT EARMARKED ONLY 382 MILLION FOR FOUR YEARS TO CREATE A COMMUNITY DEVELOPMENT AND FINANCIAL INSTITUTION FUND A THIRD OF THAT MONEY WOULD GO DIRECTLY TO MAINSTREAM BANKS TO REDUCE THEIR COST OF FEDERAL DEPOSIT INSURANCE IN RETURN THE BANKING INDUSTRY WOULD MAKE MORE CAPITAL AVAILABLE TO LOWINCOME COMMUNITIES THE HOUSE BILL MEANS THAT COMMUNITY FINANCIAL INSTITUTIONS WOULD RECEIVE LESS THAN 64 MILLION A YEAR ON AVERAGE OVER FOUR YEARS A SENATE COMMITTEE APPROVED THE ENTIRE 382 MILLION FOR THE PROPOSED FUND PLUS THE CREATION OF A 5 MILLION REVOLVING LOAN FUND FOR CREDIT UNIONS SERVING LOWINCOME COMMUNITIES BUT THE SENATE ADJOURNED BEFORE TAKING A FULL VOTE A SENATE BANKING COMMITTEE OFFICIAL PREDICTS THE BILL WILL PASS THE FULL SENATE IN JANUARY BUT EVEN IF IT IS APPROVED I'M NOT SURE THERE WILL BE MONEY APPROPRIATED FOR IT THE OFFICIAL SAYS A TREASURY DEPARTMENT OFFICIAL SAYS SHE IS CONFIDENT CONGRESS WILL APPROPRIATE THE FUNDS NEVERTHELESS OFFICIALS OF COMMUNITYDEVELOPMENT FINANCIAL INSTITUTIONS FRET THAT CONGRESS IS SHORTCHANGING THEIR CLIENTS I'M AFRAID THE MONEY ISN'T GOING TO GO TOO FAR SAYS MARK PINSKY COORDINATOR OF A PHILADELPHIA COALITION OF COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS EVEN 382 MILLION OVER FOUR YEARS ISN'T A LOT OF MONEY WHEN YOU REALIZE THERE ARE ABOUT 300 SUCH INSTITUTIONS AT VARIOUS LEVELS OF SCALE SOME VERY SMALL AND SOME VERY LARGE MR PINSKY ADDS MARTIN TRIMBLE EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION OF COMMUNITY DEVELOPMENT LOAN FUNDS WORRIES THAT WHAT LITTLE MONEY MIGHT BE ALLOCATED WILL BE ABSORBED BY BUREAUCRATS APPOINTED TO RUN THE NEW FEDERAL FUND ODDS 'N' ENDS VENTURE CAPITALISTS INVESTED 17 BILLION IN ENTREPRENEURIAL COMPANIES DURING THIS YEAR'S FIRST HALF 22 MORE THAN THE SAME 1992 PERIOD REPORTS VENTURE CAPITAL JOURNAL IN NEW YORK MORE THAN A FOURTH OF THE FUNDS WENT TO FIRMS THAT ARE DEVELOPING AND MARKETING SOFTWARE 9312210164 931221 EXXON PLANS CHINA EXPLORATION IRVING TEXAS EXXON CORP SAID IT SIGNED A CONTRACT IN BEIJING CHINA TO EXPLORE AND DEVELOP BLOCK 3 IN THE TARIM BASIN THE BLOCK COVERS ALMOST 37 MILLION ACRES AND IS LOCATED IN THE XINGIANG UYGUR AUTONOMOUS REGION OF NORTHWEST CHINA EXXON WILL HAVE A 70 STAKE IN THE BLOCK SUMITOMO CORP AND INDONESIA PETROLEUM LTD WILL EACH HAVE 15 STAKES 9312210163 931221 ENTERGY MERGER IS APPROVED NEW ORLEANS ENTERGY CORP SAID THE SECURITIES AND EXCHANGE COMMISSION GAVE ITS APPROVAL FOR THE MERGER OF ENTERGY AND GULF STATES UTILITIES CO THE SEC ORDER IS THE LAST FEDERAL REGULATORY APPROVAL NEEDED TO COMPLETE THE MERGER ALTHOUGH THE TRANSACTION IS AWAITING A FINAL DECISION FROM THE PUBLIC UTILITY COMMISSION OF TEXAS WHICH SHOULD COME BEFORE THE END OF THE MONTH 9312210162 931221 COMPUTERS YESTERDAY'S PCS GO TO TODAY'S HIGHEST BIDDER BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL MENLO PARK CALIF FOR MANUEL DIAZ IT'S A GOOD THING THAT TODAY'S HOT PERSONAL COMPUTERS SO QUICKLY TURN INTO YESTERDAY'S NEWS SITTING IN AN AUCTION WAREHOUSE HERE JAMMED WITH PROSPECTIVE BUYERS THE POSTAL CLERK FROM VALLEJO CALIF SHOOTS HIS HAND UP WHEN THE AUCTIONEER SEEKS A BID ON A NEW PC FROM AST RESEARCH INC IT'S A DISCONTINUED MODEL BUT MR DIAZ FIGURES IT'S PERFECT FOR HIS TWO CHILDREN HE WINS THE BIDDING AT 1250 FAR LESS THAN THE 2100 TAG ON SIMILAR MACHINES HE PRICED AT COMPUTER STORES A GOOD MANY BOTTOMFISHING CONSUMERS LIKE MR DIAZ ARE GETTING DEALS ON THE PC INDUSTRY'S LEFTOVERS THESE DAYS AT COMPUTER AUCTIONS AROUND THE COUNTRY PC TECHNOLOGY CHANGES AT LIGHTNING SPEED SO COMPUTERS BECOME OUTDATED IN AS LITTLE AS SIX MONTHS OFTEN LEAVING THEIR MAKERS WITH INVENTORY TO UNLOAD BECAUSE IT COSTS SO MUCH TO SELL THE OLD MERCHANDISE PIECEMEAL BIG COMPUTER MAKERS ARE INCREASINGLY OPTING TO SELL THE MACHINES ALL AT ONCE IN AN AUCTION EVERY ITEM SELLS SAYS KIRK DOVE PRESIDENT OF AUCTIONEERS ROSSDOVE CO OF FOSTER CITY CALIF THAT'S ONE REASON MANUFACTURERS LIKE AUCTIONS ACCORDING TO ANDREW CP ELIOPOULOS A REGIONAL VICE PRESIDENT FOR ROSSDOVE THE COMPUTERS SOLD AT AUCTION REPRESENT ONLY A TINY FRACTION OF TOTAL SALES FOR A COMPUTER MAKER FOR EXAMPLE HE SAID AST SELLS AN AVERAGE OF 2200 COMPUTERS DAILY ABOUT THE AMOUNT IT SELLS AT ONE AUCTION HE ADDED THE COMPANIES MAKE MONEY ON THE SALES AUCTIONS HAVE LONG BEEN USED IN THE REALESTATE INDUSTRY TO CLEAR OUT DISTRESSED PROPERTY THEY CAME INTO VOGUE IN THE COMPUTER INDUSTRY DURING THE 1980S MAINLY AMONG FAILING COMPANIES FORCED TO JETTISON ALL THEIR STOCK AS THE PACE OF TECHNOLOGICAL CHANGE ACCELERATED BIGNAME COMPUTER MAKERS ALSO BEGAN USING AUCTIONS ABOUT FOUR YEARS AGO AND THE TREND HAS BEEN INCREASING INTERNATIONAL BUSINESS MACHINES CORP LAST YEAR AUCTIONED OFF ABOUT 3200 PCS IN HERNDON VA APPLE COMPUTER INC SOLD ABOUT 18000 COMPUTERS AT RECENT AUCTIONS IN DES PLAINES ILL FRAMINGHAM MASS AND HERNDON AND AST HAS SOLD BETWEEN 2000 AND 2500 COMPUTERS IN EACH OF FOUR AUCTIONS SINCE JULY IN CHICAGO BOSTON AND ELSEWHERE GATEWAY 2000 AND OTHER SMALLER MANUFACTURERS ALSO HAVE HAD AUCTIONS YOU HAVE A CHOICE OF EITHER CRUSHING THEM IN THE LANDFILL OR GIVING PEOPLE AN OPPORTUNITY TO BUY SAYS JERRY DEVLIN AST'S VICE PRESIDENT OF SALES FOR THE AMERICAS ANOTHER REASON FOR BIG INVENTORIES IS A PROPENSITY IN THE INDUSTRY TO OVERESTIMATE DEMAND AND MANUFACTURE TOO MUCH APPLE'S AUCTIONS FOR INSTANCE WERE DOMINATED BY OLDER VERSIONS OF ITS POWERBOOK PORTABLE COMPUTERS THAT ANALYSTS SAY CAME FROM AN INVENTORY OF SOME 500 MILLION IN UNSOLD STOCK YOU CAN'T ALWAYS PREDICT WHAT THE CUSTOMERS WILL WANT SAYS TIM BAJARIN AN INDUSTRY CONSULTANT IN SAN JOSE CALIF UNLESS YOU HAVE A DECENT CRYSTAL BALL FORECASTING IS BY NO MEANS A FOOLPROOF METHOD SOME MANUFACTURERS LIKE COMPAQ COMPUTER CORP AND DELL COMPUTER CORP MAINTAIN FACTORYOUTLET STORES TO CLEAR OUT OLD INVENTORY IT'S A VERY POPULAR SPOT WITH THE LOCAL FOLKS DELL SPOKESMAN DEAN KLINE SAYS OF HIS COMPANY'S FACTORY STORE NEAR HEADQUARTERS IN AUSTIN TEXAS HEWLETTPACKARD CORP USES ANOTHER APPROACH OFFERING OLD PRODUCTS AT BIG DISCOUNTS TO EMPLOYEES AT CHRISTMAS AUCTIONS HOWEVER REPRESENT THE MOST DIRECT WAY TO EXPEDITE SALES BY PRESENTING COMPUTERS DIRECTLY TO CUSTOMERS AND UNLIKE MANY REALESTATE AUCTIONS WHERE BIG INVESTORS DOMINATE THE BIDDING PC AUCTIONS ARE MORE EGALITARIAN BECAUSE THE BIDDING IS SET UP TO ALLOW INDIVIDUAL PURCHASES AS WELL AS BLOCK SALES WITH THE PLAYING FIELD LEVELED SOMETIMES YOU WALK AWAY WITH NOTHING AND SOMETIMES YOU WALK AWAY WITH 250000 IN COMPUTERS SAYS MIKE SCHULER NATIONAL REMARKETING MANAGER FOR MICRO EXCHANGE CORP A NUTLEY NJ LIQUIDATOR OF COMPUTER PRODUCTS THAT BUYS HEAVILY AT AUCTIONS WHILE DISCOUNTS OF BETWEEN 20 AND 25 ARE TYPICAL THE DEALS SOMETIMES AREN'T AS GOOD AS THEY SEEM WARRANTIES OFTEN ARE LIMITED TO 30 DAYS COMPARED WITH AS LONG AS A YEAR ON STOREBOUGHT COMPUTERS WITH THE OPTION TO BUY AN EXTENSION SOME AUCTIONED PCS HAVE GOTTEN MILEAGE AS SALESDEMONSTRATION MODELS WHILE OTHERS HAVE BEEN DENTED OR OTHERWISE DAMAGED A BUYER'S PREMIUM OF 5 IS TACKED ONTO A SALE TO PAY THE AUCTIONEER AT THE MENLO PARK AUCTION 1500 FOLDING CHAIRS QUICKLY FILL WITH PEOPLE HOLDING WHITE BIDDING CARDS THE BIDDING IS FAST AND FURIOUS AS THE AUCTIONEER CRIES OUT THE SPECIFICATIONS OF VARIOUS COMPUTERS ONE OF THE FIRST SUCCESSFUL BIDDERS IS EDMOND CHENG A SAN JOSE COMPUTER AUDITOR WHO PAID 2000 FOR A SERVER A COMPUTER USED TO STORE LARGE FILES AFTER HAVING PRICED SIMILAR MODELS IN STORES FOR AS MUCH AS 3000 FRANK CAMPBELL AN AUTHOR FROM NEARBY PALO ALTO WALKED AWAY WITH THE SAME SERVER IT'S CERTAINLY BETTER THAN RUNNING AROUND TRYING TO FIND THE LAST 100 BARGAIN ON SOME NONAME BRAND MR CAMPBELL SAYS EVEN COMPUTER NOVICES GET IN THE ACT I'M A NONUSER SAYS BILL SEGALE OF REDWOOD CITY CALIF WHO SAYS HE AND HIS WIFE PAM FOLLOWED THE ADVICE OF A COMPUTERKNOWLEDGEABLE FRIEND AND BOUGHT AN AST MACHINE MRS SEGALE SAYS THEY WERE FORCED INTO THE COMPUTER AGE BY THEIR CHILDREN WHO ASKED SANTA FOR A COMPUTER FOR CHRISTMAS 9312210161 931221 MAXTOR HOLDERS CLEAR PROPOSALS SAN JOSE CALIF MAXTOR CORP SAID HOLDERS APPROVED THREE PROPOSALS REGARDING A PROPOSED 150 MILLION INVESTMENT IN THE COMPANY BY MEMBERS OF SOUTH KOREA'S HYUNDAI GROUP OF COMPANIES UPON COMPLETION OF THE TRANSACTION HYUNDAI WOULD RECEIVE ABOUT 194 MILLION MAXTOR COMMON SHARES OR ABOUT 40 OF MAXTOR'S STOCK OUTSTANDING AT A VALUATION OF 770 A SHARE 9312210160 931221 WHO'S NEWS COMCAST CORP COMCAST CORP PHILADELPHIA ARTHUR R BLOCK 38 YEARS OLD FORMERLY ASSISTANT SECRETARY AND DEPUTY GENERAL COUNSEL WAS NAMED VICE PRESIDENT AND DEPUTY GENERAL COUNSEL AND ROBERT S PICK 41 MANAGING DIRECTOR CORPORATE DEVELOPMENT WAS NAMED VICE PRESIDENT CORPORATE DEVELOPMENT OF THIS CABLECOMMUNICATIONSSYSTEMS CONCERN 9312210159 931221 US AUTO PRODUCTION EXPECTED TO OUTPACE JAPAN'S FOR A CHANGE DETROIT FOR THE FIRST TIME IN MORE THAN A DECADE US CAR AND TRUCK PRODUCTION IS EXPECTED TO ECLIPSE AUTOMOTIVE OUTPUT IN JAPAN NEXT YEAR US ASSEMBLY PLANTS WILL MANUFACTURE ROUGHLY 112 MILLION CARS AND LIGHT TRUCKS IN 1994 WHILE JAPANESE FACTORIES WILL CHURN OUT ABOUT 11 MILLION VEHICLES ACCORDING TO ESTIMATES BY AUTOMOTIVE NEWS AN INDUSTRY TRADE PUBLICATION IN 1995 AND 1996 THE US WILL OUTPRODUCE JAPAN BY LARGER MARGINS SAID RONALD GLANTZ AN AUTOMOTIVE CONSULTANT THIS YEAR US PLANTS WILL BUILD 108 MILLION VEHICLES UP FROM 98 MILLION A YEAR AGO AUTOMOTIVE NEWS SAID JAPANESE FACILITIES WILL PRODUCE 111 MILLION VEHICLES IN 1993 DOWN FROM 125 MILLION IN 1991 JAPANESE FACILITIES BUILT A HUGE 44 MILLION MORE VEHICLES THAN US PLANTS THE LEADERSHIP SWITCH UNDERSCORES THAT THE PERIOD OF JAPAN'S UNRESTRAINED GROWTH IN THE GLOBAL AUTO MARKET IS OVER THE ECONOMIC SLUMP IN JAPAN THE RECOVERY IN THE US AND THE STRONG YEN HAVE CURTAILED JAPANESE EXPORTS SAID MR GLANTZ THE PRODUCTION GAP HAS NARROWED LARGELY BECAUSE THE JAPANESE HAVE SHIFTED CONSIDERABLE PRODUCTION TO THE US THERE ARE CURRENTLY SEVEN JAPANESEOWNED OR JOINTLY OPERATED ASSEMBLY PLANTS IN THE US AND FOUR IN CANADA THE INCREASES IN US PRODUCTION CAN'T ALL BE ATTRIBUTED TO THE TRANSPLANT FACILITIES HOWEVER QUALITY AND STYLING IMPROVEMENTS BY THE US BIG THREE AUTO MAKERS HAVE TRANSLATED INTO STRONGER DEMAND FOR THEIR PRODUCTS THROUGH NOV 30 DETROIT'S SHARE OF THE US CAR AND TRUCK MARKET WAS 739 UP FROM 724 A YEAR EARLIER MEANWHILE RISING PRICES HAVE HURT THE SALES OF JAPANESE VEHICLES IN THE US THE JAPANESE SHARE OF THE US CAR AND TRUCK MARKET SLIPPED TO 231 THROUGH NOV 30 FROM 241 DURING THE SAME PERIOD A YEAR EARLIER 9312210158 931221 INTERNATIONAL POWER STRUGGLE IN JAPAN INTENSIFIES POLITICIAN ASKS A TOP BUREAUCRAT TO QUIT BY MASAYOSHI KANABAYASHI AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO THE POWER STRUGGLE BETWEEN JAPAN'S POLITICIANS AND BUREAUCRATS IS HEATING UP WITH A CABINET MEMBER REPORTEDLY TRYING TO OUST A SENIOR CAREER MANDARIN OF THE ELITE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY OR MITI SUCH A PRACTICE COMMON IN THE US AND OTHER DEMOCRACIES IS HIGHLY UNUSUAL IN JAPAN WHERE BUREAUCRATS ENJOY TREMENDOUS POWER AND EXPECT POLITICIANS TO KEEP OUT OF THEIR AFFAIRS IT HAS BEEN AT LEAST 10 YEARS SINCE SUCH AN OPEN FEUD HAS TAKEN PLACE IN TOKYO THIS COULD BE A SIGN SOME ANALYSTS SAY THAT JAPAN'S NEW ERA OF MULTIPARTY DEMOCRACY MAY THREATEN THE BUREAUCRATS' LONGCHERISHED AUTONOMY AND STABILITY IF WE ACCEPT THIS KIND OF PRESSURE FROM THE POLITICIANS THIS WILL BE A PROBLEM FOR THE INDEPENDENCE OF THE ADMINISTRATION SAID ONE MIDLEVEL MINISTRY OFFICIAL A MITI SPOKESMAN WOULDN'T CONFIRM ANY DETAILS OF THE SPAT WHICH HAS BEEN COVERED HEAVILY BY JAPANESE NEWSPAPERS AND TELEVISION BUT PRIVATELY MANY MINISTRY OFFICIALS ACKNOWLEDGE THAT A BATTLE IS RAGING IN THEIR OFFICES LAST WEEK MITI MINISTER HIROSHI KUMAGAI A POLITICIAN IN THE RULING COALITION REPORTEDLY ASKED MASAHISA NAITO DIRECTORGENERAL OF MITI'S INDUSTRIAL POLICY BUREAU TO RESIGN MR NAITO 55 YEARS OLD WAS A RISING STAR IN MITI A TOKYO UNIVERSITY GRADUATE AND LONG ACTIVE IN USJAPAN TRADE NEGOTIATIONS MR NAITO'S SIN ACCORDING TO MANY PRESS REPORTS WAS THAT HE WAS TOO CLOSE TO THE LIBERAL DEMOCRATIC PARTY WHICH LOST POWER FOR THE FIRST TIME IN 38 YEARS LAST SUMMER MR NAITO APPARENTLY PROMOTED A YOUNG MITI OFFICIAL WHO WAS PLANNING TO RUN FOR PARLIAMENT EARLIER THIS YEAR THE PROMOTION SAID TO BE MORE RAPID THAN USUAL MAY HAVE BEEN DESIGNED TO BURNISH THE CANDIDATE'S RESUME AND HELP HIS VOTER APPEAL THE CANDIDATE NOW A LDP MEMBER LOST THE ELECTION THE TIGHT TIES BETWEEN MITI AND THE PARTY HAVE BEEN WELL KNOWN FOR YEARS INDEED THE CANDIDATE YASUFUMI TANAHASHI IS THE SON OF A RETIRED MITI OFFICIAL AND THE GRANDSON OF A FORMER LDP PARLIAMENT MEMBER MANY MINISTRY OFFICIALS SAID MR NAITO'S BEHAVIOR WASN'T UNUSUAL UNDER THE TRADITIONAL PRACTICES OF JAPANESE GOVERNMENT AGENCIES BUT WHEN THE ANTILDP COALITION TOOK POWER IN AUGUST THE POLITICIANS SAID THEY WANTED TO TAKE MORE POWER FROM THE BUREAUCRATS TO MAKE THE COUNTRY MORE DEMOCRATIC PEOPLE FAMILIAR WITH THE KUMAGAINAITO SPAT SAY IT INVOLVES MORE THAN SUCH HIGHMINDED PRINCIPLES IT'S A STRUGGLE FOR POWER OVER MITI SAYS POLITICAL ANALYST MASAYA ITOH HE SAYS THAT THE NEW RULING COALITION IS TRYING TO INTIMIDATE BUREAUCRATS TOO LOYAL TO THE LDP AND TO EXERT ITS OWN CONTROL OVER THE GOVERNMENT STILL THAT MARKS A BIG CHANGE IN THE PAST SUCH BATTLES WEREN'T POSSIBLE BECAUSE THE LIBERAL DEMOCRATIC PARTY ALWAYS HAD CONTROL WHILE PERSONNEL FIGHTS TOOK PLACE THEY USUALLY WERE SETTLED IN PRIVATE SO FAR MR NAITO APPEARS TO BE RESISTING MR KUMAGAI'S DEMANDS IF HE WANTS TO DISMISS ME HE CAN GO AHEAD MR NAITO TOLD THE NIHON KEIZAI SHIMBUN OVER THE WEEKEND BUT I WILL LODGE A COMPLAINT WITH THE NATIONAL PERSONNEL ADMINISTRATION NEITHER MR NAITO NOR MR KUMAGAI COULD BE REACHED FOR COMMENT 9312210157 931221 WHO'S NEWS PLANTS FOR TOMORROW INC PLANTS FOR TOMORROW INC LOXAHATCHEE FLA PAUL STEVENS 49 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THIS CONCERN WHICH GROWS PLANTS FOR REVEGETATION OF FLORIDA'S WETLANDS IN ADDITION THE COMPANY SAID PETER PORATH RESIGNED AS A DIRECTOR MR STEVENS WAS NAMED A DIRECTOR TO FILL HIS SEAT ON THE THREEMEMBER BOARD MR STEVENS HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OF POLYPHASE CORP HE SUCCEEDS JOHN POWER 31 A DIRECTOR AND ONE OF THE PRIMARY INVESTORS IN PLANTS FOR TOMORROW WHO HAD SERVED AS INTERIM PRESIDENT FOLLOWING THE RESIGNATION OF CARL T BATES JR IN OCTOBER STEPHEN CALANDRELLA A DIRECTOR AND INVESTOR IN THE COMPANY SAID MR PORATH RESIGNED FOLLOWING A SIGNIFICANT CHANGE IN DIRECTION OF THE BOARD MR PORATH COULDN'T BE REACHED FOR COMMENT PLANTS FOR TOMORROW CONTINUES TO HAVE PROBLEMS SUCH AS CONTRACTS THAT FELL SHORT OF EXPECTED RETURNS THE COMPANY SAID SEVERAL SHAREHOLDERS AND INSIDERS HAVE PROVIDED WORKING CAPITAL TO CONTINUE OPERATIONS 9312210155 931221 WHO'S NEWS EQUITABLE RESOURCES INC EQUITABLE RESOURCES INC PITTSBURGH DONALD I MORITZ PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE NATURAL GAS AND OIL CONCERN WAS NAMED TO THE NEW POST OF CHAIRMAN MR MORITZ 66 YEARS OLD WILL CONTINUE AS THE COMPANY'S CHIEF EXECUTIVE OFFICER HE WILL BE SUCCEEDED AS PRESIDENT BY FREDERICK H ABREW 56 EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER MR ABREW WILL CONTINUE AS OPERATING CHIEF THE COMPANY SAID IT CURRENTLY HAS NO PLANS TO FILL THE POST OF EXECUTIVE VICE PRESIDENT 9312210154 931221 NEOZYME HOLDERS APPROVE PLAN CAMBRIDGE MASS NEOZYME CORP SAID SHAREHOLDERS AT A SPECIAL MEETING APPROVED ITS LIQUIDATION PLAN TO MAKE DISTRIBUTION OF 1697 A SHARE TODAY TO HOLDERS OF RECORD DEC 14 THE LIQUIDATION FOLLOWS THE ACQUISITION BY GENZYME CORP OF NEOZYME'S DEVELOPMENT PROGRAMS FOR VIANAIN ENZYME AND FETALCELL SEPARATION AND ANALYSIS FOR 49 MILLION NEOZYME WAS INITIALLY FORMED BY GENZYME TO ACCELERATE THE DEVELOPMENT OF THE HEALTHCARE PRODUCTS 9312210153 931221 KIMBERLYCLARK'S REDEMPTION DALLAS KIMBERLYCLARK CORP SAID THAT ON FEB 3 IT WILL REDEEM ABOUT 9 MILLION OF THE PRINCIPAL AMOUNT OF ITS 9 1/2 SINKING FUND DEBENTURES DUE FEB 1 2018 THE REDEMPTION PRICE WILL BE EQUAL TO 1063 OF PAR PLUS ACCRUED INTEREST 9312210152 931221 WHO'S NEWS WRT ENERGY CORP WRT ENERGY CORP THE WOODLANDS TEXAS JAMES T RASH CHIEF EXECUTIVE OFFICER OF AMERICAN MEDICAL TECHNOLOGIES INC AND DOMINIC MANKIT LAM PRESIDENT OF AGRISTAR INC WERE APPOINTED DIRECTORS OF THIS BUYER OF OIL AND GAS PROPERTIES THEIR ELECTION INCREASES THE BOARD TO FIVE MEMBERS 9312210151 931221 WHO'S NEWS NEWMONT GOLD CO NEWMONT GOLD CO DENVER W JAMES MULLIN WAS NAMED A VICE PRESIDENT OF THIS GOLDMINING CONCERN WHICH IS 901OWNED BY NEWMONT MINING CORP OF DENVER MR MULLIN 48 ALSO WAS NAMED GENERAL MANAGER OF THE COMPANY'S CARLIN NEV OPERATIONS HE HAD BEEN ACTING GENERAL MANAGER OF THE CARLIN OPERATIONS 9312210150 931221 POLITICS & POLICY CLINTON APPOINTS SENATE EXSTAFFER AS HIS TOP LOBBYIST BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON NAMED PATRICK GRIFFIN A CORPORATE LOBBYISTS AND FORMER SENATE STAFFER AS THE WHITE HOUSE'S TOP CONGRESSIONAL LOBBYIST THE 44YEAROLD MR GRIFFIN IS PRESIDENT OF THE WASHINGTON LOBBYING FIRM GRIFFIN JOHNSON & ASSOCIATES THE FIRM'S CLIENTS HAVE RUN THE GAMUT OF SUCH HIGHLY REGULATED INDUSTRIES AS ENERGY TELECOMMUNICATIONS AND INSURANCE BY SELECTING A PROFESSIONAL LOBBYIST MR CLINTON WILL GET AN EXPERT ON RELATIONS WITH CONGRESS BUT HE ALSO OPENS HIMSELF TO MORE OF THE CRITICISM HE HAS HAD TO WEATHER LATELY THAT DESPITE HIS RHETORIC AGAINST SPECIAL INTERESTS AND THEIR LOBBYISTS THEIR OPERATIONS HAVE INCREASINGLY INTERSECTED WITH THOSE OF HIS ADMINISTRATION TWO OF PRESIDENT CLINTON'S TOP WHITE HOUSE AIDES ARE LEAVING AT YEAR END TO TAKE JOBS WITH FIRMS THAT LOBBY INCLUDING HOWARD PASTER WHOM MR GRIFFIN WOULD SUCCEED MR PASTER 48 WILL BECOME CHAIRMAN OF HILL & KNOWLTON INC A WORLDWIDE PUBLICRELATIONS AND LOBBYING CONCERN MR GRIFFIN IS ONE OF WASHINGTON'S BESTREGARDED DEMOCRATIC LOBBYISTS HE EARNED HIS SPURS AS A LONGTIME SENIOR AIDE TO SEN ROBERT BYRD D WVA WHEN MR BYRD WAS SENATE MAJORITY LEADER HE ALSO WAS AN ELECTED OFFICER FOR THE SENATE DEMOCRATS BEFORE THAT HE WAS A COLLEGE PROFESSOR AND AN AIDE TO SEN HOWARD METZENBAUM D OHIO MR GRIFFIN LEFT CAPITOL HILL IN 1985 AND BECAME A LOBBYISTFORHIRE LATER FORMING A COMPANY OF LOBBYISTS TO SERVE A WIDE RANGE OF CLIENTS AND LIKE MOST PROMINENT LOBBYISTS HE BECAME A FUNDRAISER FOR HIS FORMER BOSSES IN CONGRESS AND FOR THE DEMOCRATIC PARTY WHITE HOUSE AIDES DON'T CONSIDER THIS A PROBLEM BECAUSE MR GRIFFIN IS SEVERING ALL FINANCIAL TIES TO HIS FIRM AND HAS PROMISED NOT TO TAKE ON MATTERS THAT DIRECTLY ADDRESS FORMER CLIENTS CLINTON OFFICIALS SAID THE APPOINTMENT WILL BE A SUCCESS STILL SOME OF THESE LOBBYING CONNECTIONS COULD PROVE CONTROVERSIAL OVER THE YEARS MR GRIFFIN'S LOBBYING SHOP HAS REPRESENTED COMPANIES WITH SIGNIFICANT STAKES IN PRESIDENT CLINTON'S HIGHEST PRIORITY FOR 1994 OVERHAULING THE HEALTHCARE SYSTEM THESE HAVE INCLUDED DRUG COMPANY MERCK & CO THE AMERICAN PSYCHOLOGICAL ASSOCIATION BLUE CROSS AND BLUE SHIELD AND THE TOBACCO INSTITUTE OTHER CLIENTS WITH EXTENSIVE DEALINGS WITH THE WHITE HOUSE AND THE CONGRESS HAVE INCLUDED CBS INC MCCAW CELLULAR COMMUNICATIONS INC THE AMERICAN PETROLEUM INSTITUTE THE AIR TRANSPORT ASSOCIATION OF AMERICA GRUMMAN CORP AND WASTE MANAGEMENT INC 9312210149 931221 WHO'S NEWS HILLMAN CO NAMES CARL G GREFENSTETTE TO BE NEW CHAIRMAN PITTSBURGH CARL G GREFENSTETTE WAS NAMED CHAIRMAN OF HILLMAN CO A CLOSELY HELD VENTURECAPITAL COMPANY SUCCEEDING HENRY L HILLMAN INDUSTRIALIST VENTURE CAPITALIST AND REALESTATE DEVELOPER MR HILLMAN WHO IS IN HIS MID70S WAS NAMED CHAIRMAN OF THE BOARD'S EXECUTIVE COMMITTEE HE CONTROLS HILLMAN CO THROUGH A TRUST MR GREFENSTETTE MR HILLMAN'S LONGTIME CHIEF LIEUTENANT WHO HAS BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER WILL CONTINUE AS CHIEF EXECUTIVE OFFICER LAWRENCE M WAGNER WAS NAMED PRESIDENT MR WAGNER HAS BEEN EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER HE WILL CONTINUE AS CHIEF OPERATING OFFICER MR HILLMAN IS THE SON OF THE COMPANY'S FOUNDER J HARTWELL HILLMAN WHO MADE A FORTUNE IN PITTSBURGH'S COAL AND COKE INDUSTRIES THE YOUNGER MR HILLMAN MADE HIS MARK THROUGH SIZABLE VENTURECAPITAL INVESTMENTS IN A WIDE RANGE OF INDUSTRIES DAVID W HUNTER A PITTSBURGH INVESTMENT ADVISER SAID MR HILLMAN'S ABILITY TO IDENTIFY FLEDGLING MEDICAL SCIENTIFIC RESEARCH AND TECHNOLOGY COMPANIES WITH GROWTH POTENTIAL SET HIM APART FROM OTHER INVESTORS HENRY DID IT EARLY AND WITH CONVICTION MR HUNTER SAID WHAT WOULD DISTINGUISH HIM IS HOW MANY TIMES HE WON AT ONE TIME OR ANOTHER MR HILLMAN HAS PLAYED A KEY ROLE IN THE DEVELOPMENT OF SUCH COMPANIES AS GENENTECH INC TANDEM COMPUTERS INC ENZYMATICS INC KENETECH CORP HYBRITECH INC BEFORE IT WAS ACQUIRED BY ELI LILLY & CO PERRIGO CO MEDRAD INC AND DIAL PAGE INC HE WAS ONE OF THE ORIGINAL INVESTORS IN KOHLBERG KRAVIS ROBERTS & CO THE NEW YORK LEVERAGED BUYOUT FIRM MR HILLMAN ALSO HAS BECOME ONE OF THE NATION'S LARGEST COMMERCIAL REALESTATE DEVELOPERS ACCORDING TO FORBES MAGAZINE MR HILLMAN'S FORTUNE IS ESTIMATED AT 24 BILLION 9312210148 931221 BUSINESS BRIEFS ROYAL CARIBBEAN CRUISES LTD SIGNED AN AGREEMENT WITH KVAERNERMASA YARDS FINLAND FOR CONSTRUCTION OF A CRUISE SHIP FOR 300 MILLION WITH AN OPTION TO CONSTRUCT A SECOND SHIP KFC CORP A UNIT OF PEPSICO INC FORMED A JOINT VENTURE WITH MOTOKOV AS A PRAGUE TRADING HOUSE TO BUILD AND OPERATE 40 KFC RESTAURANTS IN THE CZECH REPUBLIC IN THE NEXT FOUR YEARS THE FIRST RESTAURANT MAY OPEN NEXT SUMMER IN PRAGUE BROCK CANDY CO ACQUIRED A 28 STAKE IN CLARA CANDY A DUBLIN CANDY MAKER TERMS WEREN'T DISCLOSED CADENCE DESIGN SYSTEMS INC A CIRCUITDESIGN SOFTWARE COMPANY AGREED TO SELL ITS AUTOMATED SYSTEMS INC UNIT IN BROOKFIELD WIS TO A GROUP LED BY MANAGERS OF ASI TERMS WEREN'T DISCLOSED TYLER CORP WILL ACQUIRE A CLOSELY HELD DIRECTMARKETING CONCERN FOR AT LEAST 50 MILLION TYLER DID NOT NAME THE COMPANY CROSSLAND FEDERAL SAVINGS BANK SOLD NINE FLORIDA BRANCHES TO REPUBLIC BANK CLEARWATER FLA 9312210147 931221 WHO'S NEWS FORD MOTOR CO FORD MOTOR CO DEARBORN MICH JAMES P QUINLAN 53 YEARS OLD WAS NAMED EMPLOYEE RELATIONS MANAGER OF THIS AUTO MAKER'S NORTH AMERICAN AUTOMOTIVE OPERATIONS MR QUINLAN WHO HAD BEEN EMPLOYEE RELATIONS MANAGER FOR FORD'S POWERTRAIN OPERATIONS SUCCEEDS THOMAS M BROWN MR BROWN 54 WAS NAMED EXECUTIVE DIRECTOR OF NORTH AMERICAN LABOR RELATIONS WILLIAM R GROMER 51 SUCCEEDS MR QUINLAN AS EMPLOYEE RELATIONS MANAGER OF POWERTRAIN OPERATIONS 9312210146 931221 HARLEYDAVIDSON INC PLANS TO WRITE DOWN ASSETS OF ITS RV UNIT MILWAUKEE HARLEYDAVIDSON INC SAID IT PLANS TO TAKE A PRETAX CHARGE OF 57 MILLION TO 59 MILLION TO WRITE DOWN GOODWILL AND CERTAIN OTHER ASSETS IN ITS HOLIDAY RAMBLER CORP RECREATIONALVEHICLE UNIT THE CHARGE WILL REDUCE FOURTHQUARTER NET INCOME BY 147 TO 152 A SHARE THE COMPANY SAID HARLEYDAVIDSON ACQUIRED HOLIDAY RAMBLER IN 1987 FOR 155 MILLION BUT WHILE THE PARENT'S MOTORCYCLE SEGMENT HAS BEEN CRANKING OUT ITS HEAVYDUTY MACHINES AT PEAK CAPACITY THE RV OPERATION HAS LONG PROVIDED LACKLUSTER RESULTS ANALYSTS HAVE SPECULATED THAT HARLEY MIGHT MOVE TO DIVEST ITSELF OF HOLIDAY RAMBLER BUT HARLEY APPARENTLY SOUGHT TO DISMISS ANY INFERENCE THAT THE WRITEDOWN IS A PRELUDE TO A POSSIBLE SALE A RECENTLY COMPLETED REVIEW OF THE UNIT LED IT TO CONCLUDE THAT CERTAIN ASSETS HAD ECONOMIC VALUE WHICH WAS SUBSTANTIALLY LESS THAN THEIR BOOK VALUE HARLEY SAID BUT IT ADDED THAT THERE SHOULD BE NO DOUBT THAT HARLEYDAVIDSON INC REMAINS COMMITTED TO POSITIONING HOLIDAY RAMBLER AS A LEADER IN THE MID TO PREMIUMPRICED SEGMENTS OF THE RV MARKET THE UNIT IT SAID IS IN THE MIDST OF A RESTRUCTURING OF ITS CORE RECREATIONAL VEHICLE BUSINESS WHICH SHOULD HELP POSITION THE BUSINESS FOR FUTURE GROWTH THAT EFFORT HAS INCLUDED MANAGEMENT CHANGES EARLIER THIS YEAR CHANGES IN ITS PRODUCT LINE AND A RENEWED FOCUS ON THE DISTRIBUTION SYSTEM THE COMPANY NOTED IN THE FIRST NINE MONTHS OF 1993 HARLEYDAVIDSON EARNED 553 MILLION OR 146 A SHARE BEFORE AN ACCOUNTING ADJUSTMENT THAT REDUCED NINEMONTH NET TO 25 MILLION OR 66 CENTS A SHARE HOLIDAY RAMBLER WHICH ALSO MAKES SPECIALIZED COMMERCIAL VEHICLES HAD SALES OF 2053 MILLION IN THE 1992 FOURTHQUARTER HARLEY HAD NET INCOME OF 145 MILLION OR 40 CENTS A SHARE 9312210145 931221 BUSINESS BRIEF SHAWMUT NATIONAL SWEETENS TERMS OF BID FOR NEW DARTMOUTH HARTFORD CONN SHAWMUT NATIONAL CORP SLIGHTLY SWEETENED TERMS OF ITS DELAYED PLAN TO ACQUIRE NEW DARTMOUTH BANK AND EXTENDED THE CLOSING DEADLINE TO JUNE 30 FROM JAN 1 FOR EACH OF NEW DARTMOUTH'S 424000 COMMON SHARES SHAWMUT SAID IT WILL EXCHANGE SHAWMUT COMMON SHARES WITH A VALUE OF 31095 PLUS 177 OF NEW DARTMOUTH'S NET INCOME PER SHARE BETWEEN OCT 1 1993 AND THE CLOSING DATE PREVIOUSLY SHAWMUT HAD AGREED TO EXCHANGE STOCK WITH A VALUE OF 310 CLOSELY HELD NEW DARTMOUTH IS BASED IN MANCHESTER NH SHAWMUT'S CHAIRMAN JOEL ALVORD SAID THE CHANGE COMPENSATES NEW DARTMOUTH'S SHAREHOLDERS FOR THE ADDITIONAL TIME REQUIRED TO GET THE NECESSARY APPROVALS LAST MONTH THE FEDERAL RESERVE BOARD DENIED SHAWMUT'S ACQUISITION PLAN CITING CONCERNS ABOUT COMPLIANCE WITH THE FAIR LENDING ACT AND HOME MORTGAGE DISCLOSURE ACT ON DEC 13 SHAWMUT'S MORTGAGE COMPANY ENTERED A CONSENT DECREE WITH THE FEDERAL TRADE COMMISSION AND THE JUSTICE DEPARTMENT ENDING AN INVESTIGATION INTO ALLEGEDLY DISCRIMINATORY LENDING PRACTICES SHAWMUT ESTABLISHED A 960000 FUND TO COMPENSATE BLACK AND HISPANIC PEOPLE WHO WERE UNFAIRLY DENIED MORTGAGES AND AGREED TO TAKE STEPS TO IMPROVE ITS RECORD ON LENDING TO MINORITIES AS PART OF THE AGREEMENT THE COMPANY DENIED ANY WRONGDOING SHAWMUT HAS ASKED THE FED FOR ADDITIONAL TIME IN WHICH TO SUBMIT MORE INFORMATION FOR RECONSIDERATION OF ITS ACQUISITION PLAN MR ALVORD SAID HE IS NOW CONFIDENT SHAWMUT WILL BE ABLE TO GET THE REGULATORY APPROVALS 9312210144 931221 INTERNATIONAL SHANGHAI STOCKS PLUNGE ON WORRIES OVER NEW ISSUES BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL SHANGHAI CHINA A WAVE OF SELLING POUNDED SHANGHAI STOCKS DRIVING THE SHANGHAI A SHARE INDEX DOWN 13 AS INVESTOR WORRIES MOUNTED ABOUT A FLOOD OF NEW ISSUES DUE IN COMING MONTHS AND RUMORS OF NEW TAX POLICIES THE A SHARE INDEX OF STOCKS AVAILABLE ONLY TO CHINESE INVESTORS DROPPED TO 78433 FROM FRIDAY'S 9017 CLOSE A 1993 LOW POINT THE EARLY MORNING SELLOFF RESULTED IN A SHORT TRADING HALT BUT PRICES DIDN'T FIRM UP MUCH WHEN TRADING RESUMED ANALYSTS SAID THE DOWNWARD TREND MAY CONTINUE ALBEIT AT A SLOWER PACE FOR SEVERAL DAYS FOR THE YEAR THE MARKET IS 52 LOWER THAN ITS FEBRUARY HIGH THE SELLING WAS SPARKED AT LEAST IN PART BY AN ANNOUNCEMENT FRIDAY THAT BETWEEN 12 AND 15 BILLION NEW SHARES WILL COME ON THE SHANGHAI MARKET IN 1994'S FIRST QUARTER WITH AS MANY AS 13 NEW COMPANIES LISTING IN JANUARY ALONE INVESTORS FEAR THAT THE RUSH OF NEW ISSUES WILL PULL MONEY AWAY FROM EXISTING ISSUES UNDERMINING SUPPORT FOR A MARKET IN WHICH SHARES WERE TRADING AT AN AVERAGE OF 50 TIMES PROJECTED EARNINGS BEFORE YESTERDAY'S TUMBLE PEOPLE ANTICIPATE THAT THERE ISN'T GOING TO BE ENOUGH CAPITAL TO SUPPORT 50 TIMES EARNINGS WHEN YOU HAVE SO MANY MORE CHOICES SAID HU XIAODONG A BROKER WITH SHANGHAI INTERNATIONAL SECURITIES IT WILL BECOME INCREASINGLY DIFFICULT HE SAID TO PUMP UP SHARE PRICES AND THEN BAIL OUT FOR QUICK PROFITS UP UNTIL NOW HE SAID WE DEFINED THE LONGTERM INVESTOR AS THE ONE WHO HELD THE STOCK FOR A MONTH PEOPLE WILL HAVE TO BE MORE CAREFUL THE A SHARE MARKET IN CHINA'S OTHER STOCK MARKET IN SHENZHEN WHICH HAS A LESSAMBITIOUS SCHEDULE OF NEW LISTINGS ON TAP DROPPED ABOUT 5 MONDAY THE B SHARE MARKETS IN BOTH CITIES THE ONLY ONES OPEN TO FOREIGN INVESTORS WERE LITTLE CHANGED ALTHOUGH FURTHER PROLONGED DECLINES IN A SHARE MARKETS COULD EVENTUALLY TAKE A TOLL ON THE ISSUES AVAILABLE TO FOREIGNERS TOO RUMORS OF NEW RULES AND TAX POLICIES ALSO CONTRIBUTED TO THE MARKET'S SLIDE AMONG THE RUMORED CHANGES WHICH COULDN'T BE CONFIRMED WERE A 5 CAPITALGAINS TAX ON STOCK TRANSACTIONS AND A 20 PERSONALINCOME TAX ON STOCK EARNINGS LOCAL ANALYSTS SAID 9312210143 931221 US STEEL PRODUCTION FELL 02 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY US MILLS DECREASED 02 LAST WEEK TO 1847000 TONS FROM 1850000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 105 FROM THE 1671000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 878 OF ITS CAPABILITY LAST WEEK COMPARED WITH 879 THE PREVIOUS WEEK AND 773 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9312210142 931221 TECHNOLOGY INTEL CORP PLANS MAJOR PRICE CUT FOR PENTIUM BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL SANTA CLARA CALIF INTEL CORP SAID IT WILL SLASH THE PRICE ON ITS FLAGSHIP PENTIUM MICROPROCESSOR FOR THE 1994 SECOND QUARTER IN A BID TO HELP BRING THE POWERFUL CHIP TO THE MAINSTREAM OF THE PERSONALCOMPUTER MARKET THE COMPANY SAID THE PENTIUM'S PRICE WILL FALL BY 14 TO 675 IN QUANTITIES OF 1000 UNITS OR MORE THE MINIMUM PURCHASE SIZE ON WHICH INTEL QUOTES PRICES INTEL ALSO PLANS TO CUT THE PRICE OF THE FASTEST VERSION OF ITS EARLIER 486 LINE WHICH OPERATES AT 66 MEGAHERTZ BY 18 TO 360 INTEL REGULARLY CUTS PRICES ABOUT 5 EACH QUARTER BUT THE COMPANY HAS INVESTED HEAVILY IN NEW PLANT CAPACITY TO BE ABLE TO BOOST PRODUCTION OF THE CHIPS WHICH HAVE BEEN IN SHORT SUPPLY AND GENERALLY RELEGATED TO HIGHEND PERSONAL COMPUTERS THESE PRICE POINTS MOVE OUR HIGHEND PROCESSORS INTO THE MASS MARKET SAID PAUL OTELLINI SENIOR VICE PRESIDENT OF INTEL'S MICROPROCESSOR PRODUCTS GROUP MR OTELLINI SAID THE MOVE IS UNRELATED TO IMPENDING COMPETITION WITH THE POWERPC A POWERFUL LOWPRICED MICROPROCESSOR DEVELOPED BY INTERNATIONAL BUSINESS MACHINES CORP MOTOROLA INC AND APPLE COMPUTER INC BUT ERIK JANSEN AN ANALYST AT ALEX BROWN & SONS SAID THE PRICING MOVE WILL HELP INTEL'S BATTLE AGAINST ADVANCED MICRO DEVICES INC CYRIX CORP AND OTHERS THAT MAKE CLONES OF INTEL'S CHIP ARCHITECTURE INTEL IS GOING TO GO TO THE NEXT LEVEL OF PERFORMANCE AND LEAVE THE OTHERS IN THE DUST MR JANSEN SAID MR OTELLINI SAID THAT INTEL EXPECTS PERSONAL COMPUTERS BASED ON PENTIUM CHIPS TO MAKE UP FOR 15 OF THE TOTAL PC MARKET IN 1994 HE SAID A SECOND VERSION OF THE CHIP WHICH IS EXPECTED TO REDUCE ITS POWER CONSUMPTION IS ALREADY SHIPPING IN SAMPLE QUANTITIES AND IS EXPECTED TO REACH VOLUME SHIPMENTS IN THE FIRST HALF OF 1994 THE SECOND VERSION IS CODENAMED P54C INTEL STOCK ROSE 50 CENTS OR 09 TO CLOSE AT 5850 A SHARE IN NASDAQ STOCK MARKET TRADING YESTERDAY 9312210141 931221 USBANCORP WANTS TO PAY A LOWER PRICE FOR JOHNSTOWN SAVINGS JOHNSTOWN PA USBANCORP INC WHICH ANNOUNCED LAST MONTH THAT IT WOULD ACQUIRE JOHNSTOWN SAVINGS BANK SAID IT WANTS TO PAY ABOUT 6 MILLION LESS THAN THE PREVIOUSLY AGREED PRICE OF 47 MILLION USBANCORP SAID THAT AT THE CURRENT PRICE 2450 FOR EACH JOHNSTOWN SAVINGS BANK SHARE THE ACQUISITION WOULD RESULT IN MATERIALLY GREATER DILUTION TO ITS EARNINGS AND TANGIBLE BOOK VALUE THAN ORIGINALLY ESTIMATED USBANCORP SAID PURCHASE ACCOUNTING ADJUSTMENTS HAVE TURNED OUT TO BE SIGNIFICANTLY DIFFERENT FROM WHAT WAS ANTICIPATED AS A RESULT THE BANK SAID ITS OUTSIDE FINANCIAL ADVISER WILL NOT ISSUE A FAIRNESS OPINION ALLOWING THE ACQUISITION TO PROCEED USBANCORP SAID IT HAS PROPOSED TO JOHNSTOWN SAVINGS THAT THE AGREEMENT BE AMENDED TO REDUCE THE PRICE TO 2150 A SHARE AND THAT SIMULTANEOUSLY JOHNSTOWN SAVINGS SOLICIT OTHER ACQUISITION BIDS FOR A YETUNDETERMINED PERIOD OF TIME JOHNSTOWN SAVINGS SAID ITS BOARD IS CONSIDERING THE PROPOSAL BOTH BANKS ARE BASED IN JOHNSTOWN PA DOUG THOMAS AN ANALYST WITH EMERALD ASSET MANAGEMENT INC LANCASTER PA SAID JOHNSTOWN SAVINGS' CREDIT QUALITY HAS NOT CHANGED SINCE THE ANNOUNCEMENT AND HE CONTINUES TO RATE ITS STOCK A BUY JOHNSTOWN SAVINGS WHICH HAD LOSSES TOTALING 155 MILLION IN 1988 AND 1989 AS A RESULT OF LOAN AND INVESTMENT PROBLEMS HAS BEEN INCREASINGLY PROFITABLE SINCE EARLY 1990 WALTER F RUSNAK JOHNSTOWN SAVINGS' SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID HE DOESN'T UNDERSTAND HOW THE DEAL COULD BE ACCEPTABLE TO USBANCORP ON NOV 10 WHEN IT WAS ANNOUNCED AND MORE THAN A MONTH LATER IT'S NOT 9312210140 931221 TECHNOLOGY PACIFIC TELESIS PLANS FOR VIDEO ON PHONE LINES BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL PACIFIC TELESIS GROUP ASKED FEDERAL REGULATORS FOR PERMISSION TO PROVIDE VIDEO SERVICES OVER PHONE LINES TO 13 MILLION HOMES IN CALIFORNIA THE FIRST STEP IN A SEVENYEAR 16 BILLION PLAN TO BUILD AN ADVANCED NETWORK THE SAN FRANCISCOBASED BABY BELL SAID IT WILL SPEND AT LEAST 178 MILLION BETWEEN 1994 AND 1996 TO BUILD A FIBEROPTIC AND COAXIAL TELEPHONE NETWORK CAPABLE OF TRANSMITTING VIDEO PROGRAMMING TO THE FOUR POTENTIALLY LUCRATIVE AREAS OF LOS ANGELES SAN FRANCISCO SAN DIEGO AND ORANGE COUNTY THE COMPANY ALSO PLANS TO SPEND ADDITIONAL AMOUNTS TO UPGRADE BASIC TELEPHONE SERVICES ON THE NEW NETWORK DURING THOSE YEARS SEVERAL PHONE COMPANIES HAVE SOUGHT REGULATORY APPROVAL TO PROVIDE VIDEO SERVICE OVER PHONE LINES ON A TEST OR TRIAL BASIS BUT BEFORE PACIFIC TELESIS'S MOVE BELL ATLANTIC CORP WAS APPARENTLY THE ONLY REGIONAL PHONE COMPANY THAT HAD SPECIFICALLY SOUGHT PERMISSION TO PROVIDE THE VIDEO SERVICES ON PHONE LINES ON A COMMERCIAL BASIS IT'S CLEARLY THE FIRST STEP AS PART OF A RECENTLY UNVEILED PLAN TO SPEND 16 BILLION FOR A NEW HIGHTECH NETWORK A PACIFIC TELESIS SPOKESMAN SAID WE NEED THIS TO HAPPEN PACIFIC TELESIS SAID IT EXPECTS TO RECEIVE FEDERAL COMMUNICATIONS COMMISSION APPROVAL FOR ITS PLAN BY THE SECOND QUARTER OF 1994 THE COMPANY EXPECTS TO START PROVIDING VIDEO SERVICES TO SOME HOMES BY THE END OF 1994 AND OFFER SERVICES TO ALL 13 MILLION HOMES IN THE NETWORK BY THE END OF 1996 LIKE OTHER REGIONAL PHONE COMPANIES PACIFIC TELESIS HAS BECOME INCREASINGLY AGGRESSIVE IN ITS EFFORTS TO BOLSTER ITS STAGNANT TELEPHONE REVENUE OPERATIONS BY PROVIDING NEW SERVICES INCLUDING VIDEO DIALTONE WHICH REFERS TO THE TRANSMISSION OF VIDEO PROGRAMMING OVER PHONE LINES PACIFIC TELESIS SEPARATELY HAS FILED A SUIT AGAINST THE GOVERNMENT CHALLENGING A 1984 CABLE LAW THAT PREVENTS A PHONE COMPANY FROM OWNING CABLE PROGRAMMING OPERATIONS IN ITS TELEPHONESERVICE AREA A COMPANY SPOKESMAN SAID THE PLAN TO TRANSMIT VIDEO DIALTONE SERVICES HOWEVER WON'T VIOLATE THE CABLE LAW BECAUSE THE VIDEO PROGRAMMING WILL BE PROVIDED BY INDEPENDENT PROGRAMMERS PACIFIC TELESIS PLANS TO INITIALLY TRANSMIT ABOUT 70 TELEVISION CHANNELS TO THE FOUR REGIONS OF CALIFORNIA EVENTUALLY IT INTENDS TO PROVIDE A SLEW OF INTERACTIVE SERVICES INCLUDING NEWS TELEEDUCATION HOME SHOPPING VIDEO GAMES AND INFORMATION LISTINGS 9312210139 931221 TECHNOLOGY ADMINISTRATION PLANS BILL BY FEBRUARY TO BOOST TELEPHONE CABLE COMPETITION BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION STRUGGLING TO TURN ITS INFORMATION SUPERHIGHWAY GOALS INTO SPECIFIC POLICIES IS EXPECTED TO GIVE GENERAL PRAISE BUT NO ENDORSEMENT TODAY TO THREE BILLS DESIGNED TO INCREASE TELEPHONE AND CABLE COMPETITION ON THE EVE OF A SCHEDULED SPEECH TODAY BY VICE PRESIDENT AL GORE ADMINISTRATION OFFICIALS SAID THEY EXPECT TO FILE THEIR OWN LEGISLATION BY FEBRUARY TO BREAK DOWN BARRIERS TO COMPETITION IN TELECOMMUNICATIONS BUT THEY ACKNOWLEDGED THEY HAVEN'T DECIDED UPON KEY DETAILS THAT WILL DETERMINE WHETHER VARIOUS BUSINESSES WILL SUPPORT THE BILL THOSE DETAILS INCLUDE WHAT TESTS LOCAL TELEPHONE COMPANIES WOULD HAVE TO PASS BEFORE BEING ALLOWED INTO THE LONGDISTANCE BUSINESS WHEN THEY WOULD BE ALLOWED TO PROVIDE VIDEO SERVICE AND WHAT LEVEL OF SERVICE WOULD BE GUARANTEED TO EVERY US HOME WE DON'T EXPECT TO HAVE ALL THE ANSWERS AND THE MARKET WILL SURPRISE US BUT THE QUESTION IS HOW TO MAKE THE REGULATORY SYSTEM MORE RESPONSIVE AND REACT MORE QUICKLY TO TECHNOLOGY CHANGES AN ADMINISTRATION OFFICIAL SAID IN A MEDIA BRIEFING TO DISCUSS MR GORE'S SPEECH THE OFFICIAL SAID THE ADMINISTRATION SEES VERY LITTLE CONTRADICTION WITH BILLS ALREADY FILED IN CONGRESS BUT ONE CONGRESSIONAL AIDE SAID THE JUSTICE DEPARTMENT HAS RAISED DOUBTS ABOUT WHETHER A BILL SPONSORED BY DEMOCRATIC REPS JOHN DINGELL OF MICHIGAN AND JACK BROOKS OF TEXAS WOULD PROVIDE CONSUMERS ENOUGH SAFEGUARDS AGAINST MONOPOLY PRACTICES THE BILL WOULD LIFT PROHIBITIONS THAT CURRENTLY KEEP REGIONAL TELEPHONE COMPANIES FROM MANUFACTURING PHONE EQUIPMENT PROVIDING INFORMATION SERVICES AND COMPETING WITH LONGDISTANCE COMPANIES CONSUMER GROUPS HAVE ATTACKED THE MEASURE FOR NOT REQUIRING THE BELL COMPANIES TO CONDUCT ALL OF THEIR NEW ACTIVITIES THROUGH SEPARATE SUBSIDIARIES REP DINGELL CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE AND REP BROOKS CHAIRMAN OF THE HOUSE JUDICIARY COMMITTEE HAVE BOTH URGED MR GORE NOT TO SLOW DOWN THEIR BILL WHICH TOOK THE TWO CONGRESSMEN ALMOST A YEAR TO PRODUCE IN PARTICULAR MR DINGELL WARNED THAT THE ADMINISTRATION WOULD ENTER A JURISDICTIONAL MORASS IF IT PROPOSES A BILL THAT BOTH LIFTS THE BABY BELL RESTRICTIONS AND ALSO ALLOWS TELEPHONE AND CABLE COMPANIES TO ENTER EACH OTHERS' MARKETS MORE EASILY MR DINGELL'S COMMITTEE IS ATTACKING THE LATTER ISSUE IN A SEPARATE BILL WHICH IS EXPECTED TO MOVE FASTER THAN THE DINGELLBROOKS BILL BECAUSE IT DOESN'T CROSS COMMITTEE LINES A SIMILAR SITUATION IS EMERGING ON THE SENATE SIDE ONE BILL SPONSORED BY SENS DANIEL INOUYE D HAWAII AND JOHN DANFORTH R MO WOULD ALLOW CABLE AND TELEPHONE COMPANIES INTO EACH OTHERS' BUSINESSES MEANWHILE SEN ERNEST HOLLINGS D SC CHAIRMAN OF THE ENERGY AND COMMERCE COMMITTEE IS PREPARING LEGISLATION THAT WOULD LET BABY BELLS INTO MANUFACTURING AND POSSIBLY OTHER BUSINESSES THOUGH MR HOLLINGS'S BILL PROBABLY WILL INCLUDE TOUGH CONDITIONS AND RESTRICTIONS ADMINISTRATION OFFICIALS SAY THEY WOULD LIKE TO PROPOSE SWEEPING LEGISLATION THAT CONFRONTS ALL OF THE REGULATORY ISSUES AT ONCE BUT HAVEN'T DETERMINED HOW TO DO SO WITHOUT UPSETTING THE BALANCE OF POWER WITHIN CONGRESS THE ADMINISTRATION'S LEGISLATION WOULD BE BROAD ENOUGH TO CONFRONT ISSUES LIKE THE CONFIDENTIALITY OF COMMUNICATIONS ON PRIVATE FIBEROPTIC NETWORKS AND FREESPEECH RIGHTS FOR USERS OF INFORMATION SYSTEMS ONE SENIOR GOVERNMENT OFFICIAL SAID YESTERDAY MR GORE IS LEADING AN ADMINISTRATION TASK FORCE THAT HAS BEEN MEETING WITH TELECOMMUNICATIONS EXECUTIVES SINCE MAY IN AN EFFORT TO PRODUCE A PLAN TO INCREASE COMPETITION IN CABLE TELEPHONE AND OTHER MARKETS THE TASK FORCE NOW SEEMS TO BE SCRAMBLING TO PRODUCE LEGISLATION SOON AFTER CONGRESS GETS BACK INTO SESSION YESTERDAY THE TASK FORCE WAS SCHEDULED TO BRIEF KEY MEMBERS OF CONGRESS BUT THE ADMINISTRATION POSTPONED THE BRIEFINGS AT THE LAST MINUTE SAYING MR GORE WHO JUST RETURNED FROM A TRIP TO RUSSIA HADN'T HAD ENOUGH TIME SUNDAY AND YESTERDAY TO REVIEW THE TASK FORCE'S WORK TASK FORCE MEMBERS INSIST MR GORE WILL PROVIDE SPECIFIC DETAILS BY JAN 11 WHEN HE'S SCHEDULED TO DELIVER A SPEECH IN LOS ANGELES 9312210138 931221 TECHNOLOGY QUADRA LOGIC SAYS CYANAMID ALLIANCE IS BEING RENEGOTIATED VANCOUVER BRITISH COLUMBIA QUADRA LOGIC TECHNOLOGIES INC SAID IT IS RENEGOTIATING ITS ALLIANCE WITH AMERICAN CYANAMID CO AND IS LOOKING FOR A NEW PARTNER TO BACK FASTTRACK DEVELOPMENT OF A NEW CANCER DRUG THE VANCOUVER BIOTECHNOLOGY COMPANY SAID IT HAS REACHED A STRATEGIC IMPASSE WITH CYANAMID A WAYNE NJ PHARMACEUTICAL COMPANY THAT BACKED DEVELOPMENT OF A QUADRA LOGIC CANCER THERAPY THAT IS READY TO BE MARKETED IN JAPAN AND EUROPE QUADRA LOGIC SAID IT WANTS TO ACCELERATE DEVELOPMENT OF ITS SECOND CANCER DRUG WHILE CYANAMID WANTS TO LIMIT FUTURE RESEARCH AND DEVELOPMENT INVESTMENT IN BOTH QUADRA LOGIC PRODUCTS A COMPANY SPOKESMAN SAID QUADRA LOGIC IS NEGOTIATING A NEW STRATEGIC ALLIANCE WITH A COMPANY OR COMPANIES THAT HE DECLINED TO NAME HE SAID QUADRA LOGIC EXPECTS TO MAKE A PARTNERSHIP ANNOUNCEMENT IN 1994 IN THE MEANTIME QUADRA LOGIC AND CYANAMID ARE DISCUSSING HOW TO AMEND THEIR AGREEMENT TO COMPENSATE QUADRA LOGIC FOR REDUCED R&D BACKING FROM CYANAMID IN THE EXTREME CASE IF CYANAMID PROVIDES NO R&D FUNDING ALL RIGHTS TO QUADRA LOGIC'S NEW PRODUCT WILL REVERT TO THE VANCOUVER COMPANY THE SPOKESMAN SAID HE SAID PLANS FOR MARKETING QUADRA LOGIC'S FIRST CANCER PRODUCT NEXT YEAR WON'T BE AFFECTED AND THAT THE COMPANY IS IN A STRONGENOUGH FINANCIAL POSITION TO FUND THE 1994 RESEARCH PROGRAM PLANNED FOR ITS FOLLOWUP PRODUCT CHRISTINE CHARETTE A BIOTECHNOLOGY ANALYST WITH NESBITT THOMSON INC SAID SHE DOESN'T EXPECT THE ALTERED RELATIONSHIP BETWEEN QUADRA LOGIC AND CYANAMID TO DEPRESS QUADRA LOGIC'S SHAREPRICE BEYOND THE VERY NEAR TERM A CYANAMID SPOKESWOMAN SAID THE US PHARMACEUTICALS COMPANY IS REASSESSING ITS AGREEMENTS WITH A LARGE NUMBER OF SMALLER COMPANIES AND INSTITUTIONS SHE SAID CYANAMID OWNS 11 OF QUADRA LOGIC AND THAT THERE IS NO INDICATION THAT MIGHT CHANGE 9312210137 931221 COLTEC ACQUIRES GM OPERATION NEW YORK COLTEC INDUSTRIES INC SAID ITS AUTOMOTIVE DIVISION ACQUIRED THE ASSETS OF GENERAL MOTORS CORP'S AIRPUMPMANUFACTURING BUSINESS AND WILL BE GM'S SOLE SOURCE OF THE COMPONENTS TERMS OF THE ACQUISITION WEREN'T DISCLOSED COLTEC SAID IT EXPECTS SALES TO GM TO EXCEED 50 MILLION OVER FOUR YEARS COLTEC ALSO MAKES THE PUMPS WHICH ARE USED TO REDUCE ENGINE EMISSIONS FOR FORD MOTOR CO THE AIRPUMPS BUSINESS IS PART OF COLTEC'S AUTOMOTIVE DIVISION WHICH HAD SALES OF 331 MILLION IN THE NINE MONTHS ENDED OCT 3 COLTEC MAKES AEROSPACE AUTOMOTIVE AND INDUSTRIAL PRODUCTS 9312210136 931221 NATIONSBANK UNIT BUYS PORTFOLIO CHARLOTTE NC NATIONSBANK CORP SAID ITS NATIONSCREDIT UNIT ACQUIRED A PORTFOLIO OF 253 MILLION IN BOAT LOANS FROM GENERAL MOTORS ACCEPTANCE CORP THE FINANCIAL ARM OF GENERAL MOTORS CORP THE PORTFOLIO HAS ABOUT 10000 LOANS NATIONSCREDIT ALREADY HAS ABOUT 600 MILLION IN MARINE AND RECREATIONAL VEHICLE LOANS NATIONSCREDIT IS AN ALLENTOWN PA FINANCIAL SERVICES UNIT OF NATIONSBANK A CHARLOTTE NC BANK HOLDING COMPANY 9312210135 931221 LCI INTERNATIONAL CREDIT PACT MCLEAN VA LCI INTERNATIONAL INC SAID IT HAS RECEIVED A COMMITMENT FOR A 150 MILLION FIVEYEAR CREDIT FACILITY LCI A TELECOMMUNICATIONS CONCERN SAID THAT COUPLED WITH CASH ON HAND THE NEW FACILITY WILL ALLOW IT TO REPAY ALL OF ITS 136 MILLION IN EXISTING SENIOR DEBT WHILE LEAVING MORE THAN 170 MILLION TO FINANCE FUTURE STRATEGIC GROWTH AND EXPANSION NATIONSBANK AND FIRST UNION NATIONAL BANK OF NORTH CAROLINA WILL ACT AS MANAGING AGENTS FOR THE CREDIT FACILITY 9312210134 931221 TIDE WEST OIL BUYS PROPERTIES TULSA OKLA TIDE WEST OIL CO SAID IT CLOSED ITS PURCHASE OF OIL AND GAS PRODUCING PROPERTIES FROM A UNIT OF PENNZOIL CORP THE 20 MILLION TRANSACTION INCLUDES INTERESTS IN 224 OPERATED AND NONOPERATED PRODUCING PROPERTIES IN WESTERN AND SOUTHERN OKLAHOMA TIDE WEST SAID IT ESTIMATES THE PROPERTIES TO HAVE NET PROVED DEVELOPED RESERVES OF ABOUT ONE MILLION BARRELS OF OIL AND 20 BILLION CUBIC FEET OF NATURAL GAS AS WELL AS SIGNIFICANT DEVELOPMENT POTENTIAL THE PURCHASE BRINGS TIDE WEST'S ACQUISITIONS THIS YEAR TO MORE THAN 40 MILLION BETWEEN THAT AND THE DRILLING AND RECOMPLETION OF WELLS TIDE WEST SAID ITS RESERVES HAVE INCREASED MORE THAN 40 FROM THE END OF 1992 WHEN IT HAD 167 MILLION BARRELS OF OIL EQUIVALENTS 9312210133 931221 TECHNOLOGY BELL ATLANTIC TO FIGHT ANY US EFFORTS TO MAKE IT SELL CABLECHANNEL STAKES BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BELL ATLANTIC CORP'S CHAIRMAN SAID HE WILL FIGHT ANY EFFORTS BY FEDERAL AUTHORITIES TO FORCE THE BABY BELL TO SELL OFF OWNERSHIP STAKES IN CABLE CHANNELS TO PUSH THROUGH ITS PLANNED ACQUISITION OF CABLE GIANT TELECOMMUNICATIONS INC JUSTICE DEPARTMENT OFFICIALS RECENTLY RAISED THE SPECTER OF TRYING TO FORCE TELECOMMUNICATIONS AND ITS LIBERTY MEDIA SPINOFF WHICH TCI IS REACQUIRING TO SHED THE OWNERSHIP STAKES THEY HOLD IN SUCH CABLE CHANNELS AS TNT CNN AND BLACK ENTERTAINMENT TELEVISION BUT BELL ATLANTIC CHAIRMAN AND CHIEF EXECUTIVE OFFICER RAYMOND SMITH SAID THE COMPANY WOULD RESIST ANY SUCH EFFORTS TREMENDOUSLY IN A MEETING WITH EDITORS AND REPORTERS OF THE WALL STREET JOURNAL MR SMITH SAID THE PHILADELPHIABASED BELL COMPANY ISN'T REQUIRED TO DIVEST ITSELF OF PROPERTIES UNDER EXISTING REGULATIONS OR UNDER PENDING LEGISLATION MR SMITH'S STATEMENT IS THE STRONGEST TO DATE ON THE QUESTION OF WHETHER BELL ATLANTIC WOULD BE WILLING TO DIVEST ITSELF OF CABLETELEVISION PROPERTIES TO EASE THE ANTITRUST CONCERNS OF REGULATORS AND POTENTIAL CRITICS IN CONGRESS AS PREVIOUSLY REPORTED JUSTICE DEPARTMENT OFFICIALS ARE CONSIDERING SEEKING SIGNIFICANT CONCESSIONS FROM BELL ATLANTIC IN RETURN FOR ANTITRUST CLEARANCE FOR THE PROPOSED MERGER OFFICIALS ARE CONSIDERING TRYING TO GET TCI TO SELL SOME OF ITS CABLEPROGRAMMING ASSETS TO EASE CONCERNS THAT THE COMBINED COMPANY WILL BE ABLE TO MANIPULATE THE MARKET FOR TELEVISION PROGRAMS BECAUSE IT WILL HAVE ACCESS TO SO MANY HOMES BUT MR SMITH DRYLY NOTED THERE WAS NO SUCH CONCERN OR OUTCRY WHEN ANOTHER BABY BELL U S WEST INC AGREED TO INVEST 25 BILLION FOR A 25 STAKE IN TIME WARNER INC'S ENTERTAINMENT BUSINESSES IF FEDERAL REGULATORS INSIST THAT TCI DUMP ITS CHANNEL OWNERSHIP INTERESTS HE SAID THEN PERHAPS TIME WARNER SHOULD BE FORCED TO DISPOSE OF PAYCABLE CHANNEL HOME BOX OFFICE WHICH IS INCLUDED IN THE ENTERTAINMENT ENTITY IN WHICH U S WEST IS A 25 PARTNER IN A NOD TO ANTITRUST CONCERNS MR SMITH SAID BELL ATLANTIC WOULD PROCEED WITH PLANS TO SELL OFF TCI CABLE SYSTEMS IN AREAS WHERE BELL ATLANTIC PROVIDES TELEPHONE SERVICE DESPITE PERSISTENT RUMORS TO THE CONTRARY MR SMITH SAID BELL ATLANTIC ISN'T INTERESTED IN GOING AFTER ANOTHER MAJOR CABLE SYSTEM AND HE RULED OUT THE OUTRIGHT ACQUISITION OF A MAJOR HOLLYWOOD STUDIO BUT HE INDICATED BELL ATLANTIC WOULD CONSIDER BUYING AN EQUITY STAKE IN A PROGRAMMER OR CABLE COMPANY IF NECESSARY TO LINE UP AMPLE PROGRAMMING SUPPLIES IN RELATED COMMENTS MR SMITH ALSO SAID BELL ATLANTIC IS CONSIDERING TAKING A MAJOR WRITEDOWN TO COVER THE ACCELERATED DEPRECIATION OF ITS CURRENT PHONE NETWORK FOLLOWING IN THE FOOTSTEPS OF OTHER BABY BELLS HE DIDN'T DISCLOSE THE SIZE OF ANY WRITEDOWN OR WHAT QUARTER IT MIGHT BE TAKEN U S WEST WHICH PROVIDES LOCAL PHONE SERVICE ACROSS A 14STATE REGION ANNOUNCED IN SEPTEMBER THAT IT PLANNED TO TAKE A 38 BILLION AFTERTAX REDUCTION IN THIRDQUARTER NET INCOME TO COVER THE COSTS OF DEPRECIATION AND RELATED ACCOUNTING CHANGES 9312210132 931221 MORRISON KNUDSEN GETS CONTRACT BOISE IDAHO MORRISON KNUDSEN CORP SAID IT AND A MEXICAN JOINTVENTURE PARTNER HAD TENTATIVELY RECEIVED A 360 MILLION CONTRACT TO OVERHAUL AND MAINTAIN 240 FREIGHT LOCOMOTIVES FOR THE NORTHEAST REGION OF FERROCARRILES NACIONALES DE MEXICO THE NATIONAL RAILWAY OF MEXICO MORRISON KNUDSEN'S PARTNER IS GRUPO AUTOMOTRIZ E INDUSTRIAL DEL NORTE A CONSULTING COMPANY BASED IN MEXICO CITY THE OVERHAUL IS EXPECTED TO TAKE ABOUT FIVE YEARS AND THE MAINTENANCE OPERATIONS WILL CONTINUE FOR 10 YEARS THE COMPANY SAID MORRISON KNUDSEN IS AN ENGINEERING AND CONSTRUCTION COMPANY 9312210131 931221 WHO'S NEWS COMPUTERVISION CORP COMPUTERVISION CORP BEDFORD MASS ATTILIO RIMOLDI A CONSULTANT WAS NAMED VICE PRESIDENT OF RESEARCH AND DEVELOPMENT FOR THIS MAKER OF COMPUTERIZED DESIGN EQUIPMENT HE SUCCEEDS DON MCINNIS WHO RESIGNED BUT WILL REMAIN ON SPECIAL ASSIGNMENT FOR THE COMPANY OFFICIALS WEREN'T AVAILABLE TO COMMENT 9312210130 931221 ABREAST OF THE MARKET STOCKS END SESSION MOSTLY LOWER AS VOLUME SLOWS BEFORE HOLIDAY BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK BONDMARKET WEAKNESS CONFINED STOCK PRICES TO MOSTLY LOWER LEVELS AS VOLUME SLOWED AHEAD OF THE CHRISTMAS HOLIDAY THE GOVERNMENT'S BELLWETHER LONG BOND FELL MORE THAN 1/4 POINT PUSHING ITS YIELD UP TO 630 THE DOW JONES INDUSTRIAL AVERAGE WAS THE ONLY MAJOR NEW YORK STOCK EXCHANGE INDICATOR THAT GAINED GROUND FIRMING 364 POINTS OR 010 TO 375521 ON THE STRENGTH OF SOME BLUE CHIP ISSUES UNION CARBIDE ROSE 7/8 TO 22 1/4 GOODYEAR TIRE & RUBBER CLIMBED 5/8 TO 44 AND CATERPILLAR ADDED 1 1/4 TO 87 5/8 BROADER INDEXES SUCH AS THE STANDARD & POOR'S 500STOCK INDEX AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EASED THE S&P 500 FELL ABOUT 053 POINT TO 46585 AND THE NYSE COMPOSITE WAS DOWN ABOUT 020 POINT TO 25759 THE NASDAQ COMPOSITE INDEX GAINED 092 POINT TO 76015 BIG BOARD DECLINERS LED ADVANCERS 1125 TO 990 ACCORDING TO A PRELIMINARY COUNT VOLUME TOTALED 249933000 SHARES DOWN FROM 357031000 SHARES DURING FRIDAY'S TRIPLE WITCHING WHEN STOCKINDEX FUTURES AND OPTIONS AND SOME INDIVIDUAL STOCK OPTIONS EXPIRED INTERNATIONAL BUSINESS MACHINES DECLINED 1 3/8 TO 58 3/8 THE WALL STREET JOURNAL REPORTED THAT TECHNICAL PROBLEMS WILL LIKELY FORCE A MONTHSLONG DELAY IN DELIVERING UPDATED VERSIONS OF TWO TOPOFTHELINE PS/2 MODELS SEPARATELY THE JOURNAL REPORTED THAT IBM'S NEW CHAIRMAN OF EUROPEAN OPERATIONS PLANS TO CUT 10000 JOBS AS PART OF A PREVIOUSLY ANNOUNCED GLOBAL DOWNSIZING SOME OTHER TECHNOLOGY ISSUES ALSO WEAKENED STORAGE TECHNOLOGY WAS ONE EASING 7/8 TO 32 1/8 MOTOROLA SLID 2 1/2 TO 85 AND APPLE COMPUTER OF CUPERTINO CALIF SLIPPED 1 TO 28 1/2 ON THE NASDAQ STOCK MARKET BUT OTHER NASDAQ TECHNOLOGY ISSUES GAINED GROUND MICROSOFT BASED IN REDMOND WASH FIRMED 1 1/2 TO 82 AND LOTUS DEVELOPMENT OF CAMBRIDGE MASS RALLIED 1 7/8 TO 58 1/4 NERVOUSNESS ABOUT THE HOLIDAY SHOPPING SEASON UNDERMINED SOME RETAIL STOCKS MAY DEPARTMENT STORES FELL 2 TO 40 DAYTON HUDSON DECLINED 3/8 TO 68 7/8 AND NORDSTROM OF SEATTLE GAVE UP 1 1/4 TO 33 1/4 ON THE NASDAQ IN THE BANK GROUP WELLS FARGO JUMPED 3 5/8 TO 128 3/4 FOLLOWING AN EARNINGS ESTIMATE REVISION UPWARD FROM BROWN BROTHERS HARRIMAN THE BROKERAGE COMPANY RAISED ITS 1994 PROJECTION TO 14 A SHARE FROM 12 A SHARE THE COMPANY EARNED 444 A SHARE IN 1992 SOME OTHER MAJOR BANK STOCKS WERE ALSO HIGHER CITICORP MOVED UP 1 TO 37 1/2 BANKERS TRUST NEW YORK 3/4 TO 80 3/4 AND CHEMICAL BANKING 7/8 TO 40 1/2 THE WALL STREET JOURNAL YESTERDAY REPORTED THAT ANALYSTS ARE RAISING THEIR EARNINGS ESTIMATES FOR A NUMBER OF STOCK GROUPS INCLUDING BANKS IN OTHER NEWS CONTINENTAL MEDICAL SYSTEMS FELL 1 1/4 TO 8 THE MECHANICSBURG PA PROVIDER OF MEDICAL REHABILITATION PROGRAMS AND SERVICES SAID PRELIMINARY INDICATIONS OF ITS FISCAL SECONDQUARTER EARNINGS FROM OPERATIONS ARE EXPECTED TO FALL SHORT OF ANALYSTS' PROJECTIONS OF ABOUT 21 CENTS A SHARE THE COMPANY EARNED 26 CENTS A SHARE A YEAR EARLIER LOWERTHANEXPECTED FISCAL FIRSTQUARTER EARNINGS LOPPED 1 7/8 OFF HEALTHTRUST'S SHARE PRICE TO 24 1/4 THE NASHVILLE TENN OWNER AND OPERATOR OF HOSPITALS AND OTHER MEDICAL FACILITIES EARNED 46 CENTS A SHARE BELOW ANALYSTS' ESTIMATES OF 48 CENTS A SHARE A YEAR EARLIER HEALTHTRUST EARNED 40 CENTS A SHARE THE DAY'S MOST ACTIVE BIG BOARD ISSUE WAS MERCK WITH VOLUME OF ABOUT 33 MILLION SHARES UP FROM ITS AVERAGE DAILY LEVEL OF ABOUT 32 MILLION SHARES THE JOURNAL REPORTED YESTERDAY THAT MERCK WHICH EDGED UP 1/4 TO 33 7/8 IS STEPPING UP THE DEVELOPMENT OF ITS LATEST EXPERIMENTAL DRUG AGAINST AIDS BASED ON THE RESULTS OF SEVERAL SMALL INITIAL TESTS OF THE DRUG IN HUMAN SUBJECTS BORDEN ROSE 5/8 TO 18 5/8 AND WAS AMONG THE MOST ACTIVE BIG BOARD STOCKS WITH VOLUME OF ABOUT 28 MILLION SHARES UP FROM AVERAGE DAILY TURNOVER OF ABOUT 900000 SHARES THE JOURNAL REPORTED YESTERDAY THAT BORDEN'S DIRECTORS ARE CONSIDERING SELLING THE COMPANY THE INDUSTRIAL AVERAGE OPENED LOWER YESTERDAY MORNING BUT QUICKLY AND BRIEFLY ADVANCED MORE THAN EIGHT POINTS FROM FRIDAY'S CLOSE THE BAROMETER THEN STAYED WITHIN TWO POINTS OF UNCHANGED LEVELS FOR THE REST OF THE SESSION BEFORE TRYING TO MOVE HIGHER AT THE CLOSE WE RALLIED HALF AN HOUR AFTER THE OPEN AND AT THE CLOSE WE TESTED THOSE HIGHS AND FAILED SAID DAVID BUTLER HEAD OF EQUITY TRADING AT KEMPER FINANCIAL SERVICES STOCKS TYPICALLY REVERSE COURSE ON THE MONDAY FOLLOWING A FRIDAY TRIPLE WITCHING BUT THERE WASN'T ENOUGH REAL SELLING YESTERDAY TO DO MUCH DAMAGE MR BUTLER SAID THOUGH MR BUTLER AGREES THAT VOLUME WILL LIKELY DRY UP EVEN MORE THIS WEEK VOLATILITY COULD RISE BECAUSE OF THE EXPECTED SLOW ACTION A FEW BUYERS OR SELLERS CAN HAVE A GREAT IMPACT ON STOCK PRICES IN LOWVOLUME SESSIONS THERE ARE SEVERAL ITEMS ON THE AGENDA THIS WEEK THAT COULD AFFECT EQUITIES THE FEDERAL OPEN MARKET COMMITTEE MEETS TODAY IN WASHINGTON AND MANY ANALYSTS BELIEVE THE POLICYMAKING BODY WILL MOVE FROM A NEUTRAL STANCE TO A BIAS TOWARD TIGHTENING INTEREST RATES THOUGH DETAILS OF THE FOMC MEETING WON'T BE RELEASED TODAY MR BUTLER SAID ANY RUMORS THAT EMERGE WOULD AFFECT BOND PRICES WHICH IN TURN WOULD LIKELY AFFECT STOCKS TOMORROW THE GOVERNMENT RELEASES ITS FINAL THIRDQUARTER ESTIMATE ON THE GROSS DOMESTIC PRODUCT THURSDAY'S DATA INCLUDE NOVEMBER DURABLE GOODS AND PERSONAL INCOME FIGURES 9312210129 931221 WHO'S NEWS DART GROUP CORP DART GROUP CORP LANDOVER MD H RIDGELY BULLOCK AND LARRY G SCHAFRAN WERE ELECTED AS NEW DIRECTORS TO DART'S BOARD AND TO THE BOARDS OF SUBSIDIARIES CROWN BOOKS CORP AND TRAK AUTO CORP MR BULLOCK 59 YEARS OLD IS PRESIDENT OF MONTCHANIN MANAGEMENT CORP A PRIVATE INVESTMENT BANK AND PRESIDENT OF MICHEL VINEYARDS INC MR SCHAFRAN 55 IS A DIRECTOR OF SEVERAL COMPANIES WITH THE NEW MEMBERS DART EXPANDS ITS BOARD TO SIX MEMBERS WHILE CROWN AND TRAK EXPAND THEIR BOARDS TO SEVEN MEMBERS EACH DART ALSO HAS INTERESTS IN GROCERY RETAILING FINANCIAL SERVICES AND REAL ESTATE 9312210127 931221 FINANCING BUSINESS DANA CORP DANA CORP TOLEDO OHIO SAID REGISTERED HOLDERS OF ITS 5 7/8 CONVERTIBLE DEBENTURES HAVE CONVERTED DEBENTURES WITH A FACE VALUE OF ABOUT 147 MILLION INTO 29 MILLION SHARES OF DANA COMMON STOCK THE CONVERSION INCREASES DANA'S NUMBER OF COMMON SHARES OUTSTANDING BY 6 TO 49 MILLION DANA SAID AND REDUCES ITS DEBT OUTSTANDING BY 86 MILLION THE CONVERSION PRICE WAS 5043 A SHARE DANA IS A CAR AND TRUCK PARTS MAKER 9312210126 931221 INTERNATIONAL MILOSEVIC RETAINS HIS GRIP ON POWER IN SERBIAN VOTE BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL SLOBODAN MILOSEVIC AND HIS SOCIALIST PARTY WIDELY BLAMED IN THE WEST FOR FUELING THE WAR IN THE FORMER YUGOSLAVIA RETAINED THEIR GRIP ON POWER AFTER SERBIAN PARLIAMENTARY ELECTIONS DESPITE AN INFLATION RATE RACING TOWARD 30000 A MONTH MR MILOSEVIC APPEARED TO BE ACHIEVING HIS GOAL OF A PARLIAMENTARY MAJORITY WITH ABOUT 50 OF THE VOTES IN SUNDAY'S ELECTION COUNTED A PARTY SPOKESMAN PREDICTED THE SOCIALISTS WOULD WIN 124 TO 128 SEATS IN THE 250SEAT PARLIAMENT EVEN IF IT FALLS SHORT OF A MAJORITY THE PARTY WOULD LIKELY BE ABLE TO CONTINUE GOVERNING BY FORMING A COALITION WITH SEVERAL SMALLER PARTIES NOT SURPRISINGLY OPPOSITION CANDIDATES RAISED THE POSSIBILITY OF VOTERIGGING IF THEY CLAIM A MAJORITY OFFICIALLY IT WOULD BE A FRAUD ONE OFFICIAL OF THE OPPOSITION DEMOCRATIC PARTY TOLD REUTERS NEWS WIRE MR MILOSEVIC'S APPARENT MANDATE COMES AS THE WARRING SIDES IN BOSNIAHERZEGOVINA RETURN TO THE NEGOTIATING TABLE TODAY IN ANOTHER SEARCH FOR PEACE DESPERATE TO ESCAPE THE INTERNATIONAL SANCTIONS THAT ARE DEVASTATING HIS ECONOMY THE SERBIAN PRESIDENT HAS INDICATED HE WILL BE PUSHING SERBS IN BOSNIA TO YIELD TO MUSLIM DEMANDS FOR MORE TERRITORY IN EXCHANGE FOR PEACE BUT AS HIS AND HIS PARTY'S RHETORIC DURING THE CAMPAIGN SHOWED HE IS AS DETERMINED AS EVER TO BUILD A GREATER SERBIA BY ANNEXING SERB CONQUERED LANDS IN BOSNIA AND CROATIA WITHOUT LASTING PEACE IN BOSNIA MR MILOSEVIC WILL FIND IT IMPOSSIBLE TO CONVINCE THE WEST TO LIFT THE UNITED NATIONS TRADE SANCTIONS WHILE THE UN MEDIATORS OF THE PEACE TALKS IN GENEVA HOPE FOR A PRECHRISTMAS BREAKTHROUGH THE WARRING SIDES SAY LITTLE HAS CHANGED SINCE THEY BROKE OFF NEGOTIATIONS EARLIER THIS MONTH THE MUSLIMDOMINATED BOSNIAN GOVERNMENT REPEATED THAT IT WON'T SUBMIT TO A DIVISION OF THE CAPITAL OF SARAJEVO WHICH THE SERBS DEMAND THE MUSLIMS IN TURN ARE DEMANDING THE RETURN OF SOME OF THE LAND CONQUERED BY THE SERBS PARTICULARLY IN EASTERN BOSNIA THE SERBS SO FAR HAVE REFUSED TO CONCEDE TERRITORY IN EASTERN BOSNIA AND ANY MOVE TO DO SO WOULD LIKELY LEAD TO ARMED RESISTANCE BY SERBIAN RESIDENTS THERE IF THE EARLY ELECTION RESULTS ARE CONFIRMED MR MILOSEVIC IDENTIFIED BY THE US STATE DEPARTMENT AS A POSSIBLE TARGET OF WARCRIMES INVESTIGATIONS WILL HAVE ONCE AGAIN TURNED BACK HIS OPPOSITION BY RALLYING SERBIA'S NATIONALIST AND PATRIOTIC PASSIONS HIS EXHORTATIONS FOR SERB TERRITORIAL UNION AND AGAINST WESTERN SANCTIONS CUT INTO THE ELECTORAL SUPPORT OF THE SERBIAN RADICAL PARTY LED BY VOJISLAV SESELJ ONCE A MILOSEVIC ALLY AND NOW A BITTER FOE A LEADER OF A PARAMILITARY UNIT ACCUSED OF COMMITTING ATROCITIES IN CROATIA AND BOSNIA MR SESELJ JOINED THE SOCIALISTS IN A RULING COALITION BEFORE THE ELECTION BUT DURING THE CAMPAIGN THE TWO MEN TOOK TURNS ACCUSING THE OTHER OF BEING A BIGGER CROOK AND WAR CRIMINAL 9312210125 931221 WHO'S NEWS CONVEST ENERGY CORP CONVEST ENERGY CORP HOUSTON STANLEY B WYRWICZ SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF GENERAL INVESTMENT & DEVELOPMENT CO A BOSTON REALESTATE CONCERN WAS NAMED TO THE BOARD OF THIS OIL AND GAS COMPANY EFFECTIVE DEC 31 MR WYRWICZ 41 SUCCEEDS JIM O'BRIEN 56 WHO IS RESIGNING 9312210124 931221 DIVIDEND NEWS STELCO INC STELCO INC HAMILTON ONTARIO SAID IT WILL RESUME DIVIDEND PAYMENTS NEXT YEAR TO HOLDERS OF ITS PREFERRED SHARES NEARLY THREE YEARS AFTER SUSPENDING ALL DIVIDEND PAYMENTS THE COMPANY CURRENTLY 38 MILLION CANADIAN DOLLARS US284 MILLION IN ARREARS ON DIVIDEND PAYMENTS TO HOLDERS OF PREFERRED SHARES SAID IT WILL MAKE ITS FIRST QUARTERLY PAYMENT ON FEB 1 1994 TO HOLDERS OF RECORD JAN 18 1994 ALONG WITH THE REGULAR PAYMENT THE STEEL MANUFACTURER SAID IT WILL PAY ONE QUARTER'S WORTH OF DIVIDENDS IN ARREARS THE TOTAL PAYMENT WILL BE ABOUT C43 MILLION STELCO SAID ITS BOARD WILL CONTINUE TO CONSIDER DIVIDEND DECLARATIONS QUARTERLY IN TRADING YESTERDAY ON THE TORONTO STOCK EXCHANGE STELCO'S CLASS A SHARES CLOSED AT C775 US578 DOWN 125 CANADIAN CENTS 9312210123 931221 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 1/8 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 318 30 TO 38 DAYS 315 39 TO 119 DAYS 322 120 TO 149 DAYS 324 150 TO 179 DAYS 328 180 TO 239 DAYS 337 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 328 30 DAYS 328 60 DAYS 328 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 260 TWO MONTHS 264 THREE MONTHS 278 SIX MONTHS 303 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 320 ONE MONTH 320 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 314 30 DAYS 313 60 DAYS 313 90 DAYS 316 120 DAYS 319 150 DAYS 323 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 7/16 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 616 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 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 706 60 DAYS 714 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 701 60 DAYS 711 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 270 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9312210122 931221 REVIEW & OUTLOOK EDITORIAL ASIDES KLAN CHRISTMAS CONT'D THREE KNIGHT RIDERS OF THE KU KLUX KLAN ERECTED A CROSS IN DOWNTOWN CINCINNATI THIS WEEKEND AFTER GETTING CLEARANCE FROM A FEDERAL JUDGE TODAY ANOTHER FEDERAL JUDGE IN OHIO SAYS HE'LL RULE ON THE KKK'S DESIRE TO ERECT ONE OF ITS CROSSES AT THE STATEHOUSE IN COLUMBUS AND AGAIN THE ACLU IS PITCHING FOR THE KLANSMEN IN COURT THE ACLU LAWYER SAYS THIS CASE INVOLVES THE RIGHT OF ACCESS TO A PUBLIC FORUM ADDING THAT THE KLAN'S BEING DENIED BECAUSE OF THE CONTENT OF THEIR MESSAGE SO THE FIRST AMENDMENT PROTECTS KLAN CROSSES AND SECULAR HATE BUT THE ESTABLISHMENT CLAUSE PREVENTS CHRISTIAN CROSSES AND RELIGIOUS LOVE THIS IS WISDOM 9312210121 931221 WHO'S NEWS ADVANCED PROMOTION TECHNOLOGIES INC ADVANCED PROMOTION TECHNOLOGIES INC POMPANO BEACH FLA RICHARD K BRENNER 39 YEARS OLD FORMERLY A PROCTER & GAMBLE CO MARKETING DIRECTOR WAS NAMED VICE PRESIDENT MARKETING A NEW POST AT THIS MAKER OF ELECTRONIC MARKETING SERVICES FOR SUPERMARKETS 9312210120 931221 INTERNATIONAL BATTLING FOR RUSSIA'S SOUL AT THE FACTORY YELTSIN HAS NEW OBSTACLES TO PURGING OLDGUARD MANAGERS BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL VORONEZH RUSSIA WILL THE POSTELECTION POLITICAL SHAKEUP SLOW RUSSIA'S ECONOMIC REFORMS THE ANSWER MAY DEPEND ON WHO ENDS UP MANNING RUSSIA'S FACTORY FLOORS A MONTH AGO AT THE PEAK OF HIS POWERS PRESIDENT BORIS YELTSIN ACCOMPLISHED WHAT HAD ONCE SEEMED IMPOSSIBLE HE SACKED ONE OF RUSSIA'S MOST POWERFUL RED DIRECTORS GEORGY KOSTIN HEAD OF THE VORONEZH MECHANICAL PLANT AT THE TIME FURTHER SACKINGS SEEMED SURE TO FOLLOW A COURSE ADVOCATED BY MANY YELTSIN ADVISERS WHO BELIEVE RUSSIA HAS TO PURGE FORMER COMMUNIST DIRECTORS IF IT WANTS TO BEGIN TRULY REFORMING THE COUNTRY'S HUGE STATE DINOSAURS WITH A LARGE PARLIAMENTARY BLOC HOSTILE TO ECONOMIC REFORM HOWEVER MR YELTSIN FACES A SIZABLE NEW OBSTACLE THE SHOWDOWN OVER THE VORONEZH FACTORY OFFERS A WINDOW INTO THE BATTLE UNDER WAY FOR RUSSIA'S POLITICAL AND ECONOMIC SOUL LIKE OTHER FACTORY DIRECTORS MR KOSTIN WAS MORE THAN SIMPLY A MANAGER HE USED HIS POSITION AS A POLITICAL PULPIT AN ACTIVIST IN THE BANNED NEOFASCIST NATIONAL SALVATION FRONT HE REGULARLY SLAMMED MR YELTSIN'S POLICIES IN SPEECHES TO HIS 16000 FIERCELY LOYAL WORKERS SIMPLY REMOVING SUCH DIRECTORS OFFERS NO PANACEA FOR MR YELTSIN DECADES OF COMMUNIST RULE HAVE LEFT RUSSIA WITH A SHORTAGE OF COMPETENT MANAGERS THOSE WITH THE EXPERIENCE AND CLOUT NEEDED TO RUN A LARGE FACTORY NEARLY ALL COME FROM THE RANKS OF THE COMMUNIST PARTY ELITE SACKING A GENERATION OF KOSTINS COULD LEAVE RUSSIA WITH SECONDRATE MANAGERS WHO CAN'T CONTROL THEIR WORK FORCES MR YELTSIN'S HATCHET MAN IN VORONEZH 400 MILES SOUTH OF MOSCOW IS VIKTOR DAVYDKIN KOSTIN RULES HIS WORKERS AS IF THEY WERE SERFS SAYS MR DAVYDKIN AN URBANE FORMER PHYSICS PROFESSOR HE ISN'T INTERESTED IN BEING A DIRECTOR HE WANTS ONLY TO TOPPLE YELTSIN MR KOSTIN ISN'T GOING QUIETLY HOWEVER THE FORMER ROCKETENGINE DESIGNER WHO WON THE ORDER OF LENIN FOR HIS WORK ON RUSSIA'S SPACE SHUTTLE NOW SPENDS HIS DAYS AT HOME MARSHALING A STRATEGY TO OVERTURN HIS FIRING AND MEETING WITH POWERFUL LIKEMINDED FRIENDS GO AHEAD CALL ME A RED DIRECTOR' SAYS THE 59YEAROLD MR KOSTIN PADDING AROUND THE STUDY OF HIS APARTMENT IN YELLOW SLIPPERS I'M NOT OFFENDED THE NAME SIGNIFIES THAT PEOPLE TRUST ME TO REPRESENT THEIR INTERESTS IN FACT THE GOVERNMENT HAS TRIED TO PORTRAY MR KOSTIN NOT ONLY AS A PROCOMMUNIST MENACE BUT ALSO AS AN INEFFECTIVE MANAGER THEY SAY HE HASN'T PAID SALARIES IN TWO MONTHS AND THAT MOST OF HIS WORKERS DON'T LIKE HIM A VISIT TO HIS FACTORY SUGGESTS OTHERWISE LYUDMILLA LYUBANOVA A 34YEAROLD PURCHASING DEPARTMENT STAFFER SAYS SALARIES HAVE BEEN PAID UP TO DATE CHALLENGING THE GOVERNMENT'S CLAIMS SHE MAINTAINS THAT MOST OF THE WORKERS SUPPORT MR KOSTIN PROBABLY KOSTIN GOT IN SOMEONE'S WAY SHE SAYS INSIDE A MEETING OF THE FACTORY'S WORK COLLECTIVE REVEALS A ROOM FULL OF ANGRY PEOPLE A LARGE NUMBER OF THE WORKERS CLEARLY SHARE MR KOSTIN'S OPPOSITION TO MR YELTSIN'S POLICIES CHANGING FACTORY DIRECTORS ISN'T LIKELY TO SUDDENLY MAKE THE FACTORY'S LABOR FORCE EMBRACE REFORM AND WORK HARDER INDEED MOST FEAR THAT THE MOVE TO THE MARKET WILL MEAN LITTLE MORE THAN MASS LAYOFFS AFTER 75 YEARS OF GUARANTEED EMPLOYMENT THEY VIEW MR KOSTIN AS THE BEST PROTECTOR AGAINST THE ONSLAUGHT OF REFORM LAST YEAR A LOT OF FACTORIES WERE SHUT DOWN SAYS NELLY SUPRU A PLUMP ECONOMIST IN A PINK SWEATER I'M GRATEFUL TO KOSTIN NOT AS A PERSON BUT AS A DIRECTOR WE HAVE NEVER STOPPED WORKING FEW PEOPLE COULD MANAGE AS HE HAS MR KOSTIN'S PROBLEMS ARE FAR FROM UNIQUE AS VIRTUALLY EVERY ONE OF RUSSIA'S STATE FACTORIES IS SUFFERING MR KOSTIN WAS ONE OF THE FIRST DEFENSEFACTORY DIRECTORS TO EMBRACE CONVERSION AS POSTCOLD WAR REALITY BROUGHT MILITARY ORDERS TO A TRICKLE A FEW YEARS AGO 80 OF THE FACTORY'S OUTPUT WENT TO THE OFFICIAL SPACE PROGRAM NOW THAT HAS DWINDLED TO LESS THAN 10 THE FACTORY NOW SCRAMBLES TO FIND A NICHE MAKING EVERYTHING FROM OIL AND GAS EQUIPMENT TO DOUGHMIXING MACHINES MOREOVER IT STILL MUST TAKE CARE OF SOCIAL SERVICES THAT EAT INTO ITS ABILITY TO PURSUE FREEMARKET REFORM HOUSING SCHOOLING HOSPITALS CULTURAL PROGRAMS TO BE SURE THE BATTLE IN VORONEZH IS PARTLY ONE OF PERSONALITIES DESPITE A POPULATION OF 25 MILLION THIS IS A SMALL TOWN WHEN IT COMES TO POLITICS MR DAVYDKIN LAST SAW HIS FOE MR KOSTIN DURING A RECENT VISIT TO VORONEZH OF A RUSSIAN DEPUTY PREMIER THEY SAT IN ADJACENT SEATS IN AN AUDITORIUM BUT REFUSED TO SPEAK TO ONE ANOTHER TWISTING IN THEIR CHAIRS UNTIL THEY WERE BACK TO BACK BUT THE STRUGGLE HAS FAR MORE THAN PAROCHIAL SIGNIFICANCE TO SACK MR KOSTIN MR DAVYDKIN TOOK THE CASE TO TWO OF RUSSIA'S MOST PROMINENT PROREFORM LEADERS VICE PREMIER YEGOR GAIDAR AND PRIVATIZATION CZAR ANATOLI CHUBAIS AFTER RECEIVING A STACK OF ANTIKOSTIN DOCUMENTS THE TWO MOSCOW OFFICIALS MADE THE REQUEST AN ISSUE OF NATIONAL URGENCY WITHIN TWO WEEKS THEY HAD SACKED THE DIRECTOR IF THE MOVE STANDS UP TO MR KOSTIN'S LEGAL CHALLENGE OTHER ATTEMPTS TO FIRE DIRECTORS COULD FOLLOW MR KOSTIN'S BRETHREN OF LIKEMINDED FACTORY DIRECTORS ARE PLAINLY WORRIED THEY HAVE GATHERED IN A HOTEL ROOM IN VORONEZH FOR AN IMPROMPTU MEETING TO DISCUSS MR KOSTIN'S FATE AND THEIR OWN FOR MORE THAN AN HOUR THEY GRIPE ABOUT MR YELTSIN'S REFORMS WHICH THEY SAY HAS MADE PROFITABILITY IMPOSSIBLE THEY LIST A SERIES OF DESTRUCTIVE OFFICIAL POLICIES TAX RATES THAT EXCEED 80 SOFT INTEREST RATES OF MORE THAN 200 AND A SYSTEM IN WHICH DIRECTORS ARE ELECTED BY THE WORKERS THE LATTER FORCES DIRECTORS TO PAY HIGH SALARIES TO WIN SUPPORT RULING OUT PRODUCTIVE INVESTMENTS IN THE FUTURE TO THESE MEN MR KOSTIN IS A HERO HE WOULD ALWAYS TELL THE GOVERNMENT WHAT WAS WRONG EVEN IN PUBLIC SAYS ALEXANDER ABAKUMOV DIRECTOR OF THE VORONEZH TRAM AND TROLLEY REPAIR FACTORY HE WAS A CONVINCED COMMUNIST HE NEVER BECAME A POLITICAL PROSTITUTE MR ABAKUMOV ONCE A SUPPORTER OF MR YELTSIN NOW SAYS THE PRESIDENT'S POLICIES ARE DESTROYING RUSSIA'S ECONOMY I REALIZE THAT THEY MAY DO TO ME WHAT THEY'VE DONE TO KOSTIN HE SAYS A SECOND DIRECTOR VYACHESLAV KONDRATIEV OF THE KALININ FACTORY CHIMES IN KOSTIN'S CASE IS A DIRECT POLITICAL PERSECUTION IT RUNS COUNTER TO BOTH LAW AND COMMON SENSE HE SAYS THE GOVERNMENT HE SAYS IS PUSHING PEOPLE TOWARD NOSTALGIA FOR THE PAST THE RECENT ELECTION RETURNS SEEM TO PROVE HIM RIGHT AS HIS CASE BEGINS TO ATTRACT NATIONAL ATTENTION MR KOSTIN REMAINS AT HOME ASSEMBLING A STACK OF DOCUMENTS TO BOLSTER HIS LEGAL CASE IN ADDITION TO ASKING FOR HIS JOB BACK HE IS DEMANDING 24 MILLION RUBLES IN MORAL DAMAGES RESULTING FROM UNFAVORABLE NEWSPAPER ARTICLES HE ARRIVES AT THE SUM BASED ON A CALCULATION THAT VALUES NEGATIVE PRESS REPORTS AT SOMEWHAT MORE THAN THE ONE MILLION RUBLES PER PAGE THAT AN AD WOULD COST ACROSS TOWN HIS FOE MR DAVYDKIN IS ALREADY LOOKING FOR OTHER FISH TO FRY HE IS ON THE PHONE WITH OFFICIALS FROM ANOTHER VORONEZH FACTORY ENIKMASH WHERE A DISPUTE IS RAGING BETWEEN A DIRECTOR AND HIS WORK FORCE AFTER SEVERAL MINUTES MR DAVYDKIN HANGS UP THE RECEIVER AND LOOKS TRIUMPHANT I THINK WE'RE GOING TO GET RID OF ANOTHER ONE HE SAYS 9312210119 931221 REVIEW & OUTLOOK EDITORIAL FREE TRADE ISN'T BULLETPROOF NOT TO TAKE ANYTHING AWAY FROM THE GATT ACHIEVEMENT BUT ONE OF THE VICTORIES BROUGHT HOME BY MICKEY KANTOR WAS THAT THE US GETS TO KEEP ITS DUMPING LAWS THERE'S A GLOBAL TREND TOWARD ABDICATING TRADE POLICY TO LAWYERS AND WASHINGTON LEADS THE WAY BY IMPOSING STATUTES DESIGNED TO MAKE SURE DOMESTIC CRYBABIES ALWAYS HAVE A FRIEND IN THE COURTS OTHER COUNTRIES HEARING THE US PREACH ABOUT FREE TRADE FIGURE THIS MUST BE HOW THE GAME IS PLAYED AND NOW MOST OF THE WORLD IS PUTTING DUMPING LAWS ON THEIR BOOKS IT'S BECOME A FAVORITE STRATEGY BY WESTERN EUROPEAN NATIONS INTENT ON THWARTING GOODS FROM THEIR NEWLY FREE NEIGHBORS IN CENTRAL AND EASTERN EUROPE AS A TIMELY REMINDER YOU CAN'T BEAT THE COMMERCE DEPARTMENT'S RULING LAST WEEK AGAINST IMPORTS COMPETING WITH DU PONT'S KEVLAR THAT'S THE STUFFING THAT GOES INTO BULLETPROOF VESTS FLAK JACKETS BRAKE PADS TIRES CANOES AND NUMEROUS OTHER PRODUCTS MOST AMERICANS PROBABLY DON'T KNOW THAT DU PONT HAS MILKED THE TRADE LAWS TO MAINTAIN A DOMESTIC MONOPOLY EVER SINCE IT INVENTED THE STUFF DECADES AGO THE OTHER BIG MANUFACTURER IS AKZO OF THE NETHERLANDS AND THE TWO COMPANIES HAVE FOUGHT A THIRTY YEARS WAR OVER THE SYNTHETIC FIBER AT THE SILLIEST THEY HAD PATENT FIGHTS OR SOME OTHER KIND OF LITIGATION GOING IN 20 COUNTRIES THE UPSHOT OF WHICH WAS THAT ONE OR THE OTHER HAD A MONOPOLY IN GERMANY FRANCE HOLLAND AND THE UK AN ARMISTICE SIGNED FIVE YEARS AGO WAS SUPPOSED TO ALLOW A FREE MARKET FINALLY TO DEVELOP BEGINNING IN APRIL OF THIS YEAR BUT WHEN THE FIRST BALES OF AKZO'S TWARON BRAND LANDED THIS SUMMER DU PONT WAS BACK IN COURT CHARGING DUMPING OR SELLING BELOW FAIR VALUE THE CONCEPT IS MEANINGLESS BUT THAT DIDN'T STOP COMMERCE FROM ISSUING PRELIMINARY 47 DUTIES ON AKZO'S IMPORTS THESE SORTS OF BATTLES RAGE ACROSS THE WHOLE RANGE OF TRADED GOODS AND HAVE PROBABLY DONE AS MUCH DAMAGE AS FORMAL LEGISLATED PROTECTIONISM IN THE FIRST BLUSH OF ENTHUSIASM FOR THE CLINTONITES THE BIG THREE OF DETROIT PROPOSED TO SUE VIRTUALLY THE ENTIRE WORLD FOR DUMPING AUTOS HERE EASTERN EUROPEANS ARE AGOG AT THEIR WESTERN BRETHREN CHEERING THE FALL OF COMMUNISM OUT OF ONE SIDE OF THEIR MOUTHS WHILE TELLING GOODS FROM THESE INFANT FREE MARKET ECONOMIES TO GO AWAY FOR ALL THE STAMPING OF FEET ABOUT THE LITIGATION EXPLOSION BUSINESS ITSELF IS THE PRIMARY LEGAL ABUSER COMPANIES MAKE CONSTANT RESORT TO THE COURTS TO HARASS AND HOBBLE THEIR COMPETITORS DU PONT SUED AFTER AKZO HAD THE TEMERITY TO ANNOUNCE A BIG PLANT EXPANSION THE TWO CHEMICAL MAKERS HAVE A PHILOSOPHICAL DIFFERENCE ABOUT ARAMID AS THE FIBER IS GENERICALLY CALLED DU PONT REGARDS KEVLAR AS A SPECIALTY PRODUCT WHILE AKZO BELIEVES TWARON CAN BE MASSMARKETED IN COMPETITION WITH STEEL FIBERGLASS ASBESTOS AND CERTAIN COMPOSITE MATERIALS IN A ZILLION APPLICATIONS WE DON'T KNOW WHAT THE REAL POTENTIAL OF THE STUFF MAY BE BUT NEITHER DOES ANYBODY ELSE WITH CERTAINTY ONLY BY LETTING A FREE MARKET DEVELOP CAN THAT QUESTION BE SETTLED YOU'D THINK SOMETHING CALLED THE COMMERCE DEPARTMENT WOULD BE IN FAVOR OF THAT 9312210118 931221 SOVEREIGN BANCORP SUES ITS CHAIRMAN OVER EFFORTS TO SELL BANKHOLDING FIRM ALLEGES JAINDL AND SEVERAL OTHERS HAVE ACTED IMPROPERLY BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL AN APPARENT CONFLICT EMERGED AT SOVEREIGN BANCORP INC AS THE WYOMISSING PA BANKHOLDING COMPANY SUED ITS CHAIRMAN AND SEVERAL OTHER DIRECTORS ALLEGING IMPROPER EFFORTS TO SELL THE FIRM THE CHAIRMAN FREDERICK JAINDL DISPUTED THE CHARGES HE CONTENDED THAT OTHER BANK OFFICIALS ARE SEEKING TO BLOCK CONSIDERATION OF OVERTURES THAT HE SAID SOVEREIGN HAS RECEIVED FROM TWO OTHER LARGE BANK COMPANIES A NEWS RELEASE ISSUED LATE YESTERDAY OVER THE NAME OF SOVEREIGN LEGAL COUNSEL LAWRENCE M THOMPSON JR SAID THAT THE COMPANY HAD FILED SUIT AGAINST MR JAINDL AND OTHERS INCLUDING TWO OTHER DIRECTORS ALLEGING THAT THEY ARE VIOLATING FEDERAL SECURITIES LAWS BY ACTING AS AN UNDISCLOSED GROUP IN ATTEMPTING TO CAUSE THE COMPANY TO BE SOLD IN A MANNER NOT BELIEVED TO BE IN THE BEST INTERESTS OF ALL SHAREHOLDERS THE SUIT FILED IN US DISTRICT COURT IN PHILADELPHIA ALSO CLAIMED THAT MR JAINDL HAD TAKEN NUMEROUS ACTIONS THAT HE SHOULD HAVE DISCLOSED INCLUDING AN UNSUCCESSFUL ATTEMPT TO SEIZE CONTROL OF THE COMPANY'S BOARD THE RELEASE SAID THE BANK ALSO SAID THAT ITS DIRECTORS HADN'T DETERMINED THAT THE COMPANY SHOULD BE SOLD MR JAINDL IN AN INTERVIEW TERMED THE SUIT A JOKE AND EXPRESSED SURPRISE AT THE ACTION WHICH HE SAID HE LEARNED ABOUT THROUGH A PHONE CALL LATE YESTERDAY FROM ANOTHER DIRECTOR YOU'D THINK IT WOULD TAKE THE ACTION OF THE BOARD TO SUE SOMEBODY HE SAID MR JAINDL SAID HE HAD LED EFFORTS TO ENCOURAGE THE COMPANY'S EIGHTMEMBER BOARD TO CONSIDER THE OVERTURES WHICH HE SAID HADN'T YET BECOME FORMAL OFFERS HE ALSO SAID THE BOARD HAD RECENTLY INTERVIEWED THREE INVESTMENT BANKS AND WAS SCHEDULED TO MEET AGAIN TODAY TO DISCUSS HIRING ONE OF THEM TO REVIEW SOVEREIGN'S PROSPECTS HE CONTENDED HOWEVER THAT JAY S SIDHU PRESIDENT AND CHIEF EXECUTIVE OFFICER AND THREE OTHER DIRECTORS HAVE EXPRESSED OPPOSITION TO A POSSIBLE SALE IN PRELIMINARY DISCUSSIONS MR JAINDL SAID HE AND THE REMAINING THREE DIRECTORS FEEL WE HAVE A FIDUCIARY RESPONSIBILITY TO AT LEAST TALK WITH THE BANKS THAT MADE THE OVERTURES OR HIRE AN INVESTMENT BANKER TO MAXIMIZE SHAREHOLDER INTERESTS MR JAINDL DECLINED TO IDENTIFY THE BANKS THAT MADE THE OVERTURES OTHER THAN TO DESCRIBE THEM AS BIG REGIONAL BANKS SOVEREIGN PARENT OF SOVEREIGN BANK WITH 79 BRANCHES IN SOUTHEASTERN PENNSYLVANIA AND CENTRAL NEW JERSEY HAS ASSETS OF ABOUT 43 BILLION NEITHER MR THOMPSON NOR MR SIDHU COULD BE REACHED TO ELABORATE ON THE NEWS RELEASE OR SUIT 9312210117 931221 GOD'S GIFT A COMMERCIAL CHRISTMAS BY ROBERT A SIRICO THIS HOLIDAY SEASON LIKE EVERY OTHER IN MEMORY WE WILL HEAR CALLS TO TAKE COMMERCIALISM OUT OF CHRISTMAS THE NATIONAL COUNCIL OF CHURCHES HAS ALREADY ISSUED A PRESS RELEASE TO ENCOURAGE US TO FORGO THE SECULAR COMMERCIALIZED FRENZY OF CHRISTMAS IN FAVOR OF GENUINE CHARITY ONLY THOSE WHO SIT IN DARKNESS BELIEVE THAT LOVE CAN BE BOUGHT AND SOLD INTONED THE REV JOAN BROWN TOP EXECUTIVE OF THE COUNCIL THESE WARNINGS AGAINST MONEY AND MATERIALISM WILL INSPIRE GUILT AND CONFLICT BUT NOT MUCH GOODNESS AND CLARITY THE CRITICS OF HOLIDAY MATERIALISM FORGET THAT COMMERCE DURING THIS SEASON IS INSPIRED PRIMARILY BY THE DESIRE TO GIVE TO OTHERS AND WHAT OTHER SEASON OF THE YEAR INSPIRES COMMERCIAL ACTIVITY ORGANIZED AROUND SUCH ALTRUISTIC THEMES THE DENUNCIATIONS OF COMMERCE AT CHRISTMAS ARE USUALLY ISSUED BY THE SAME PEOPLE WHO CASTIGATE CAPITALISM YEAR 'ROUND IN DOING SO THEY OFFER A NEW GNOSTICISM THE VIEW THAT THE MATERIAL WORLD IS FUNDAMENTALLY SUSPECT EVEN EVIL AND THAT THE POSSESSION OF MATERIAL GOODS BEYOND THE ESSENTIALS IS IN ITSELF SINFUL TO MODERN GNOSTICS THE ULTIMATE GOAL OF EACH PERSON'S LIFE SHOULD BE OVERCOMING THE FACT OF MATERIAL REALITY AND BECAUSE THE SEASON DOES INDEED REMIND US OF HOW FORTUNATE WE ARE THE ANTICOMMERCE MESSAGE RESONATES BUT OFTEN FORGOTTEN IN THE ANNUAL SCREEDS AGAINST MATERIALISM IS THAT BOTH THE JEWISH AND CHRISTIAN TRADITIONS WHICH EMBRACE THE GOODNESS OF THE PHYSICAL WORLD REJECT THE GNOSTIC HERESY THE BOOK OF GENESIS TEACHES US THAT THE EARTH IS A GIFT FROM GOD FOR OUR USE AND THAT IT WAS CREATED GOOD GEN 125 TO CHRISTIANS THE INCARNATION OF THE SAVIOR AFFIRMS THE MORAL LEGITIMACY OF OUR OWN CORPORALITY OF COURSE THE DISCIPLINES OF RELIGIOUS ORDERS OFTEN REQUIRE VOWS OF POVERTY CHASTITY AND OBEDIENCE I HAVE ACCEPTED SUCH VOWS MYSELF BUT THESE OATHS ARE TAKEN AS A WITNESS TO TRANSCENDENCE THEY DO NOT IMPLY A CONDEMNATION OF THE MATERIAL WORLD THE SAME CHURCH THAT ADMINISTERS THE SACRAMENTS HAS FOR CENTURIES REJECTED A DUALISM BETWEEN MATTER AND SPIRIT RATHER CHRISTIANITY TEACHES THAT THE BODY AND THE SPIRIT ARE WHAT TOGETHER MAKE US HUMAN JESUS CAME TO DWELL AMONG US FULLY DIVINE AND FULLY HUMAN SO THAT ETERNITY COULD ENTER TIME WHAT BETTER SEASON THAN CHRISTMAS TO EXPRESS OUR OWN LOVE OF OTHERS IN AN APPROXIMATION OF GOD'S LOVE FOR US WE SHOULD REMEMBER THAT THE MAGI WHO CROSSED MILES OF DESERT BROUGHT THE BABY JESUS GOLD UNIVERSALLY DESIRED FOR MONETARY PURPOSES AND PURE DECORATION FRANKINCENSE AND MYRRH EXOTIC INCENSE RESINS RESERVED MAINLY FOR ROYALTY THESE WERE THE WORLD'S MOST PRECIOUS COMMODITIES THESE GIFTS MIGHT EVEN BE CALLED EXTRAVAGANT AND SUPERFLUOUS WHAT WOULD A LITTLE BABY DO WITH THESE DON'T THEY GO BEYOND WHAT IS ESSENTIAL OF COURSE THEY WERE APPROPRIATELY THE MOST HIGHLY PRIZED SYMBOLS OF LOVE AND AWE THE THREE KINGS HAD TO OFFER THE ANTICOMMERCIAL ATTITUDE BESPEAKS A SPIRITUAL ELITISM ASCETICS LOOKING DOWN AT THE JOY COMMON FOLK EXPERIENCE IN GIVING GIFTS SOMEHOW FINDING THE PERFECT PAIR OF FLANNEL SLIPPERS FOR AN UNCLE OR A PURPLE BARNEY TO LIGHT THE EYES OF A YOUNGSTER IS CONSIDERED FALSE CHARITY AND FRIVOLOUS TO BOOT ONE NOTFORPROFIT GROUP EVEN SELLS A POSTER DEPICTING ANCIENT BETHLEHEM AS IT MIGHT HAVE LOOKED IF THE CAPITALISM OF TODAY HAD EXISTED ON THE FIRST CHRISTMAS THEY SEEM TO CONFUSE COMMERCE WITH THE INVENTION OF ELECTRICITY THE ECONOMIC BOOM EXPERIENCED DURING DECEMBER EVERY YEAR IS THE BEST KIND OF COMMERCE THERE IS AS THE WORD BECAME FLESH OUR SENTIMENTS BECOME GIFTS NO MATTER HOW HUMBLE SUCH EXPRESSIONS MAY BE CHILDREN SHOULD BE TAUGHT TO PUT OTHERS BEFORE THEMSELVES USING ALLOWANCES OR LABOR TO PURCHASE OR PRODUCE A GIFT FOR ANOTHER IN ADVENT WE ARE ALL REMINDED TO FOCUS OUTWARD AND TAKE JOY IN DISCOVERING THE HIDDEN FANCIES OF FAMILY MEMBERS FRIENDS AND COWORKERS GRANTED SOME OF THE PEOPLE WHO PROFIT FROM THIS HOLIDAY SEASON DO NOT NECESSARILY DO SO WITH HIGHER VALUES IN MIND THOSE WHO HAWK THEIR WARES ARE OUT TO MAKE A BUCK NO DOUBT BUT THAT IN NO WAY TAKES AWAY FROM THE END RESULT OF THEIR BUSINESS ALLOWING PEOPLE TO EXPRESS THEIR GENEROSITY OF SPIRIT TO ONE ANOTHER IF EARLY FOLLOWERS OF JESUS COULD TAKE A PAGAN FESTIVAL AND MAKE IT THEIR OWN SURELY CHRISTIANS SHOULD NOT MIND SECULARISTS MAKING MONEY BY SERVING GOOD HOLIDAY INTENTIONS AND SURELY SPIRITUALITY CAN BE DISCOVERED IN THE MARKETPLACE WHICH IS AFTER ALL WHERE WE SPEND MUCH OF OUR TIME THE CHRISTMAS SEASON CALLS US TO BE THANKFUL FOR OUR OWN PROSPERITY AND TO SHARE IT WITH OTHERS INCLUDING THOSE BEYOND OUR CIRCLE OF FAMILY AND FRIENDS A HUGE BODY OF CUSTOM HAS GROWN UP AROUND THE CELEBRATION OF CHRISTMAS IT IS ONE OF THE FEW RELIGIOUS HOLIDAYS THAT IS RECOGNIZED IN THE SECULAR CALENDAR AND THE CHRISTMAS TREE YULE LOG CAROLS SWEETMEATS ALL COMMODITIES TO BE BOUGHT AND SOLD ARE ALL DEEPLY EMBEDDED IN OUR CULTURE IN VICTORIAN ENGLAND CHILDREN WERE GIVEN PRESENTS AT THE BIRTH OF A BROTHER OR SISTER DURING CHRISTMAS THE FEAST OF THE BIRTH OF JESUS EVEN FARM ANIMALS WERE GIVEN GIFTS IN CELEBRATION OF THE BIRTHDAY OF THE UNIVERSAL LITTLE BROTHER IT WAS CUSTOMARY FOR A LANDLORD TO FEED HIS TENANTS IN EXCHANGE FOR A LOG THAT WOULD BURN IN THE FIREPLACE ADVENT REMAINS A TIME FOR OPENING OUR HEARTS AND OUR HOMES TO THOSE IN NEED AND DECEMBER IS THE PRIMARY MONTH OF CHARITABLE GIVING FOR REASONS OTHER THAN TAX WRITEOFFS AS FOR THE THEOLOGICAL SCROOGES WHO WANT TO TAKE COMMERCE OUT OF THE SEASON THEY SHOULD NOT FORGET HOW IMPORTANT THIS MONTH IS FOR BUSINESSES TO PROVIDE FOR THE PUBLIC DURING THE REST OF THE YEAR WHEN GIFT GIVING IS NOT THE NORM THE JOBS AND SALARIES TAKEN FOR GRANTED DURING THE NEXT 11 MONTHS DEPEND IN GREAT PART ON AN ENTERPRISING HOLIDAY SEASON FOR HEAVEN'S SAKE DON'T FORGET THE HIGHER MEANING OF THIS GLORIOUS SEASON BUT ALSO FOR HEAVEN'S SAKE AND FOR THE SAKE OF GENEROSITY AND TRADITION DON'T TAKE AWAY THE SIMPLE PLEASURE OF GIVING TOKENS OF LOVE AND FRIENDSHIP TO ONE ANOTHER LOVE CANNOT BE BOUGHT AND SOLD OF COURSE BUT IT CAN BE EXPRESSED AND SYMBOLIZED BY MATERIAL GENEROSITY WHICH IS ONE OF THE CHARACTERISTIC MARKS OF THIS BEAUTIFUL TIME OF THE YEAR PAULIST FATHER SIRICO IS PRESIDENT OF THE ACTON INSTITUTE FOR THE STUDY OF RELIGION AND LIBERTY IN GRAND RAPIDS MICH 9312210116 931221 REVIEW & OUTLOOK EDITORIAL LEANING ON THE FED THE FEDERAL RESERVE'S POLICYMAKING COMMITTEE CONVENES TODAY AT A PARTICULARLY CRUCIAL JUNCTURE RECOVERY HAS FINALLY PROCEEDED TO THE POINT WHERE SELLERS AND SPENDERS ARE SEEING SIGNS OF OPTIMISM BUT COMMODITY PRICES HAVE STARTED TO RISE WITH GOLD HEADED TOWARD 400 AN OUNCE THE FED WOULD BE FULLY JUSTIFIED IN CONCLUDING THAT A BIT OF SNUGGING NOW WOULD AVOID HAVING TO SLAM ON THE BRAKES WHEN INFLATION SHOWS UP IN PRODUCER AND CONSUMER PRICES AND JUST NOW AFTER A YEAR OF SELFRESTRAINT PRESIDENT BILL CLINTON CHOSE TO ADDRESS HIMSELF TO THE FEDERAL RESERVE HE CALLED IN REPORTERS LAST WEEK TO DECLARE THAT THERE IS NO INFLATION TREND IN THIS ECONOMY SUCH A PRESIDENTIAL STATEMENT NECESSARILY MEANS THAT WARNING SIGNS ARE INDEED PRESENT SO WE ONCE AGAIN FACE THE QUESTION OF WHETHER INVESTORS ARE CONVINCED THAT THE FED ENJOYS THE POWER AND RESOLVE TO PROTECT THE VALUE OF MONEY IN THE FACE OF A WHITE HOUSE CHANTING FOR GROWTH IT'S WORTH REVISITING THE HISTORY OF THE 1980S TO SEE WHY SOUND MONEY AND SHORTTERM GROWTH ARE NOW IN TENSION AND WHY IT NEEDN'T HAVE BEEN SO THE KEY IS TAX POLICY WHICH HELPS DETERMINE THE ECONOMY'S POTENTIAL FOR NONINFLATIONARY GROWTH ON ARRIVING IN WASHINGTON PRESIDENT RONALD REAGAN CONFRONTED A FEDERAL RESERVE ALREADY WAGING WAR AGAINST THE DOUBLEDIGIT INFLATION OF THE CARTER YEARS MR REAGAN DID NOT RAIL ABOUT INTEREST RATES BUT INSTEAD PERMITTED THE FEDERAL RESERVE TO GO PEACEFULLY ABOUT ITS BUSINESS WHILE THE PRESIDENT'S OWN MEN PUSHED CONGRESS INTO ENACTING STEEP CUTS ON MARGINAL TAX RATES THESE DID NOT AS COMMONLY ALLEGED STARVE THE GOVERNMENT OF CASH BUT THEY DID SLOW THE MOUNTING BURDEN OF TAXATION ON THE NEXT DOLLAR OF INCOME COMPARED TO THE LAST THE FACT THAT STRIVERS AND ENTREPRENEURS CAME FORWARD IN RESPONSE TO THE CHANGED INCENTIVES GIVING US THE LONGEST PERIOD OF PEACETIME GROWTH DROVE A FATAL NAIL THROUGH THE PHILLIPS CURVE IT BECAME CLEAR THAT THE PRESUMED HOBSON'S CHOICE BETWEEN INFLATION AND UNEMPLOYMENT WAS NOT WRITTEN INTO NATURE'S LAW AFTER ALL IT WAS MERELY AN ARTIFACT OF BAD TAX POLICY INDEED WHEN NORMAL LOGIC ISN'T OVERWHELMED BY PERVERSE TAX INCENTIVES LOW INFLATION AND A GROWING PIE ARE NATURAL SOULMATES PEOPLE ARE MORE APT TO WORK AND SAVE WHEN CONVINCED THAT THE DOLLARS THEY EARN WON'T LOSE VALUE BEFORE THEY CAN BE SPENT MR CLINTON HAS DONE HIMSELF NO FAVOR BY TURNING THIS EQUATION ON ITS HEAD LARGELY TO MAKE A SYMBOLIC BREAK WITH THE GREED DECADE HE HAS BOOSTED TAXES THAT CURB INCENTIVES AND AFTER THE DEFEAT OF HIS KEYNESIAN STIMULUS PACKAGE HE BASED HIS HOPES FOR RECOVERY ON LOW INTEREST RATES WHICH IS TO SAY MONETARY STIMULUS THE TAXES DIDN'T ABORT THE RECOVERY AND THERE WAS ROOM FOR MONETARY STIMULUS DUE TO A WORLDWIDE DEFLATIONARY TREND BUT COMMODITY PRICES SUGGEST THAT GAME IS OVER WE'RE BACK IN A PHILLIPS CURVE TRADEOFF IT'S OF COURSE TRUE AS TREASURY SECRETARY LLOYD BENTSEN HAS BEEN REMINDING EVERYBODY THAT MARGINAL TAX RATES WERE EVEN HIGHER UNDER JIMMY CARTER THAN UNDER BILL CLINTON WHILE THIS SHOWS SOMETHING HAS BEEN LEARNED IT'S ALSO TRUE THAT CARTERERA LOOPHOLES RESTORED SOME OF THE INCENTIVES TAKEN AWAY BY HIGH RATES IT'S DIFFICULT TO STIFLE THE ECONOMY'S NATURAL PROPENSITY TO GROWTH BUT THIS HAS SURELY BEEN A DISAPPOINTING RECOVERY WITH A LONG WAIT FOR EVEN THE CURRENT TEPID OPTIMISM SO WE NOW FIND THE CLINTONITES RATCHETING UP PRESSURE ON THE FED TO COMPENSATE WITH EASIER MONEY UNTIL LAST WEEK MR CLINTON'S STATELY RETICENCE ON MONETARY POLICY WAS ATTRIBUTED TO A SINCERE DESIRE NOT TO RELIVE THE TRIALS OF PRESIDENT CARTER ALAS THE INTENTION WAS NOT ACCOMPANIED BY ANALYSIS IN RESURRECTING HIGH MARGINAL RATES AND PROPOSING A PASSEL OF NEW PAYROLL TAXES MR CLINTON MAY ALREADY BE SUPPLYING THE STAG NOW HE'S BEGUN BEATING ON THE FED TO PROVIDE THE FLATION NEARBY LARRY KUDLOW SETS OUT THE CLINTONITES' BROADER STRATEGY FOR SUBORNING THE FEDERAL RESERVE SEE RELATED ARTICLE FED NEEDS AN ANGELL WSJ DEC 21 1993 IT INCLUDES DENUDING THE FED OF ITS REGULATORY POWERS AND FLOATING THE USUAL SET OF CONFIDENCEEBBING NAMES AS POSSIBLE SUCCESSORS TO OUTGOING FED GOVERNOR WAYNE ANGELL NOBODY CAN REALLY WANT TO BLUNDER DOWN THE ROAD OF STAGFLATION AGAIN AND CERTAINLY NOT A WHITE HOUSE SENSITIVE TO ITS POLITICAL FORTUNES IN 1996 BUT AVOIDING THIS UNHAPPY PASS WOULD MEAN PAYING SOME ATTENTION TO THE LESSONS OF THE 1980S RATHER THAN SAY MORALIZING AGAINST GREED IT'S GETTING PRETTY LATE IN THE DAY FOR MR CLINTON TO BELIEVE HE CAN WALTZ TO A SECOND TERM ON THE STRENGTH OF VIRTUE WE'D RECOMMEND HARNESSING SOME GREED THAT IS IF HE'D RELY ON THE WILLINGNESS OF PEOPLE TO DO HONEST WORK FOR AN HONEST REASONABLY TAXED DOLLAR HE'D BE MORE LIKELY TO GET SOME OOMPH INTO THE ECONOMY WITHOUT REKINDLING THE RISK OF INFLATION 9312210115 931221 LETTERS TO THE EDITOR AN INSULT TO COLOMBIANS' COURAGE I HAPPENED TO BE IN BOGOTA WHEN PABLO ESCOBAR WAS KILLED BY COLOMBIAN MILITARY AND POLICE FORCES AS NEWS OF HIS DEATH QUICKLY SPREAD A PROFOUND SENSE OF RELIEF WAS PALPABLE THROUGHOUT COLOMBIA IN THE STREETS RESTAURANTS OFFICE BUILDINGS AND SHOPS TELEPHONE CIRCUITS WERE OVERLOADED WITH PEOPLE SHARING THE GOOD NEWS WITH FRIENDS AND RELATIVES THERE WAS EVEN REJOICING ALTHOUGH NOT THE EXPLOSIVE REJOICING THAT WOULD COME IF COLOMBIA WERE TO WIN THE WORLD CUP OF SOCCER BUT RATHER A SUBDUED REJOICING MOST COLOMBIANS FOUND IT DIFFICULT TO REJOICE UNRESERVEDLY NO MATTER HOW CRUEL AND DESPICABLE ESCOBAR WAS SINCE HE STILL WAS A HUMAN BEING WITH A WIFE AND CHILDREN YET THERE CAN BE NO DOUBT OF THE OVERWHELMING SENSE OF RELIEF AND YES JOY THAT ESCOBAR'S DEATH BROUGHT COLOMBIANS TALK ABOUT IT AS A TURNING POINT FOR THE NATION THAT AN ENORMOUS BURDEN HAD BEEN LIFTED FROM THEM AND THE GOVERNMENT EVEN THE BOGOTA STOCK EXCHANGE REFLECTED THIS JOY WITH AN EXPLOSIVE RALLY THE NEXT DAY I WAS DISMAYED THEREFORE TO SEE THAT THE FRONTPAGE COVERAGE BY SOME US NEWSPAPERS FORTUNATELY NOT THE WALL STREET JOURNAL OF ESCOBAR'S BURIAL EMPHASIZED THAT THOUSANDS OF COLOMBIANS MOURNED HIS DEATH AND THAT HE WAS VIEWED AS A SAINT BY THE PEOPLE SUCH REPORTAGE IS MISLEADING AND IS INSULTING TO THE 30 MILLION COLOMBIANS WHO HAVE SUFFERED SO MUCH AND ARE NOW REJOICING NOT MOURNING THE REAL STORY BEHIND HIS DEATH WHICH THE PRESS HAS NOT YET TOLD AND WHICH THE US PUBLIC DESERVES TO KNOW IS HOW THE COLOMBIAN PEOPLE AND ESPECIALLY THOUSANDS OF PUBLIC SERVANTS GOVERNMENT MINISTERS PROSECUTORS JUDGES POLICEMEN AND SOLDIERS AND THEIR FAMILIES HAVE SUFFERED RUTHLESS ASSASSINATIONS LIVED IN CONSTANT FEAR AND YET HAVE BEEN WILLING TO CARRY ON COURAGEOUSLY IN THE FACE OF IMMEDIATE THREATS OF DEATH WITH THEIR OFFICIAL RESPONSIBILITIES TO BRING ESCOBAR TO JUSTICE THE COLOMBIAN NATION HAS ENDURED THIS ENORMOUS BURDEN FOR YEARS AND YET HAS CONTINUED TO MOVE FORWARD THIS IS THE REAL STORY NOT ONE OF SAINTS AND OF MOURNING AND IT SHOULD BE TOLD 9312210113 931221 IN CHRISTMAS TREES VINYL WINS OUT OVER PINE BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL CARLA JENKINS WOULDN'T PUT UP A REAL CHRISTMAS TREE IF SOMEONE CHOPPED ONE DOWN AND DELIVERED IT TO HER DOOR SHE WORRIES ABOUT THE THREAT OF FIRE BUT MOSTLY THE DALLAS NATIVE THINKS THE SPINDLY ALUMINUM TREE SHE BOUGHT LAST WEEK AT THE SALVATION ARMY THRIFT SHOP WHERE SHE WORKS IS MUCH PRETTIER ESPECIALLY WITH THE ROTATING COLOR WHEEL THAT WILL BATHE IT IN RED BLUE GREEN AND YELLOW LIGHT WHEN I WAS REAL LITTLE ABOUT SEVEN WE HAD ONE OF THESE SHE SAYS WARMLY EVER SINCE THEN I'VE WANTED ONE MS JENKINS IS PART OF A NEW HOLIDAY MAJORITY MORE PEOPLE ARE SETTING UP FAKE CHRISTMAS TREES THAN REAL ONES THE NATIONAL CHRISTMAS TREE ASSOCIATION WHICH REPRESENTS GROWERS SAYS A POLL BY THE GALLUP ORGANIZATION SUGGESTS THAT 354 MILLION AMERICANS ARE BUYING REAL TREES WHILE AT LEAST 388 MILLION LAST YEAR'S FIGURE ARE PUTTING UP ARTIFICIAL TREES SOME WHO GO FAUX SUCH AS MS JENKINS CITE FEAR OF FIRE OR ENVIRONMENTAL CONCERNS OTHERS WHO COMPLAIN ABOUT PLUCKING PINE NEEDLES OUT OF THE CARPET THROUGH NEXT EASTER POINT TO THE CONVENIENCE OR SAY THEY ACTUALLY LIKE THE FAKE VARIETY BETTER WHATEVER THE REASONS ARTIFICIAL TREES WHICH SELL FOR ANYWHERE FROM 15 TO 500 HAVE STEADILY GAINED GROUND SINCE THE 1970S THE REALTREE GROWERS' ASSOCIATION EVEN PLOTTED AN AMBITIOUS COUNTERATTACK IN THE LATE EIGHTIES WHICH CALLED FOR A MULTIMILLIONDOLLAR MARKETING BLITZ TO MAKE AMERICANS FEEL GOOD ABOUT REAL TREES AGAIN BUT IT FELL APART AS GROWERS FROM DIFFERENT STATES SQUABBLED OVER HOW THE MONEY WOULD BE COLLECTED AND SPENT SO THE ASSOCIATION'S REALTREE CAMPAIGN RELIES ON VOLUNTARY CONTRIBUTIONS LESS THAN 200000 THIS YEAR TO MAKE ITS CASE THROUGH PRESS KITS AND NEWSLETTERS WITH BYLINES LIKE SCOTT PINE AND EVE R GREEN BUT THOSE HAVEN'T PERSUADED ONE OF THE BARWICKS OF ROCK SPRINGS WYO BARB BARWICK WHO GREW UP IN A THICKLY FORESTED PART OF UTAH DREAMS OF TAKING HER KIDS OUT TO CHOP DOWN A CHRISTMAS TREE AS HER MOTHER AND FATHER TOOK HER BUT SHE BOWS GRUDGINGLY TO HER HUSBAND BOB WHO SAYS HIS CHILDHOOD IN NEARLY TREELESS ROCK SPRINGS LEFT HIM WITH A POWERFUL AVERSION TO CUTTING DOWN TREES JUST FOR THE ENJOYMENT OF A WEEK OR TWO I TELL HIM CHRISTMAS TREES ARE GROWN TO BE CUT SHE SAYS AND THAT THEY GROW IN AREAS WHERE THERE ARE PLENTY OF TREES BUT HE WON'T BUDGE SO 10 YEARS AGO THEY BOUGHT THE MOST EXPENSIVE ARTIFICIAL TREE SHE COULD FIND I WASN'T GOING TO SETTLE FOR A CHEAPLOOKING ONE SHE SAYS AND THEY'VE USED IT EVERY YEAR SAVE FOR THE CHRISTMAS HE RELUCTANTLY AGREED TO CHOP DOWN THE ONE TREE IN THEIR OWN FRONT YARD BEFORE ITS ROOTS CRACKED THEIR DRIVEWAY WELL IT WOULD HAVE SHE INSISTS LESS TYPICALLY PERHAPS SINGER JOHN PRINE IN NASHVILLE USES AN ARTIFICIAL TREE BECAUSE IT'S MORE PRACTICAL FOR SOMEONE WHO HAS LEFT HIS TREE UP AND DECORATED 365 DAYS A YEAR SINCE 1989 JOAN GEIGER ASSOCIATE EXECUTIVE DIRECTOR OF THE GROWERS' ASSOCIATION SAYS ECOLOGICAL WORRIES ARE MISPLACED BECAUSE 90 OF CUT TREES COME FROM TREE FARMS AND SEVERAL TREES ARE PLANTED FOR EACH ONE CUT AFTER CHRISTMAS TREES CAN BE RECYCLED USUALLY BY BEING GROUND INTO WOOD CHIPS OR MULCH BUT IN A PITCH TO GROWERS FOR FUNDS TO PROMOTE RECYCLING THE ASSOCIATION NOTES THAT ONLY ABOUT ONE IN 10 CITIES HAS PROGRAMS TO RECYCLE TREES AND THAT LAST YEAR ONLY A FIFTH OF THE 28 MILLION TREES SOLD IN CITIES OR SUBURBS WERE RECYCLED MOST TREES STILL WIND UP IN LANDFILLS MEANWHILE FAKE FIRS WHICH ARE MOSTLY MADE OF VINYL THESE DAYS KEEP GETTING MORE REALISTIC TAKE SMELL PEOPLE ALWAYS COMPLAIN ARTIFICIAL TREES LACK THAT YULE AROMA SAYS RICK YABLON OWNER OF SSILKSS A WHOLESALE IMPORTER AND RETAILER OF ARTIFICIAL TREES IN SAN FRANCISCO I SAY PUT A CUP OF PINESOL UNDER THE TREE HE JOKES YOU'LL HAVE THE PINE SMELL AND YOUR TREE WILL BE DISINFECTED BUT THE FRAGRANCE GAP WAS NOTHING TO SNIFF AT FOR PETER BARTHELMESS EXECUTIVE VICE PRESIDENT OF BARCANA INC WHICH MAKES SOME OF THE FANCIER ARTIFICIAL TREES ON THE MARKET BARCANA SPENT FIVE YEARS DEVELOPING THE BALSAM EXTRACT NOW INCLUDED IN LITTLE VIALS WITH SOME OF ITS TREES HE SAYS MOST BARCANA TREES COME WITH THREE REAL PINE CONES MR BARTHELMESS RECOMMENDS DABBING THE EXTRACT ON THE PINE CONES AND HANGING THEM FROM THE TREE IT TOOK A WHILE TO GET ON THE RIGHT TRACK HE SAYS AT FIRST WE TRIED PINE SCENT BUT FOR SOME REASON IT REMINDED EVERYONE OF BATHROOM CLEANING ODOR BUT THE BALSAM SMELLS LIKE A FOREST MR BARTHELMESS ENTHUSES AND THAT'S IMPORTANT BECAUSE THOUGH BARCANA MAKES TREES IN PINK BLACK GOLD AND IRIDESCENT WHITE MOST PEOPLE WANT THEIR FAKES AS REALISTIC AS POSSIBLE TONY GERLEIT A BUYER FOR A NEW JERSEY RETAIL CHAIN MADE HIS FASHION STATEMENT TWO YEARS AGO WITH A BLACK TREE MY FRIENDS LOVED IT HE SAYS BUT THERE AREN'T ENOUGH ORNAMENTS THAT LOOK GOOD ON IT AND SOMEHOW IT JUST WASN'T THE SAME BETTER FOR HALLOWEEN WITH LITTLE ORANGE PUMPKIN LIGHTS HE SAYS FOR CHRISTMAS HE HAS GONE BACK TO GREEN FAKE GREEN THE INTERNAL CONFLICT OVER TREES STRANDS SOME IN YULETIDE GRIDLOCK CECELIA LANHAM IN GARBERVILLE CALIF IS AMONG THE GALLUP POLL'S ESTIMATED ONETHIRD OF AMERICANS WHO WON'T HAVE A TREE AT ALL THIS YEAR HER FAMILY ALWAYS CUT TREES WHEN SHE WAS YOUNG NOW AS AN ENVIRONMENTAL ACTIVIST SHE AGREES THAT THERE'S ROOM FOR AGRICULTURAL PRODUCTION OF CHRISTMAS TREES BUT WORRIES ABOUT THEM CLOGGING LANDFILLS AT THE SAME TIME SHE SAYS I HAVE A HARD TIME WITH FAKE THINGS MORE PEOPLE THIS YEAR ARE RESOLVING THE CONFLICT BY CHOOSING LIVE CHRISTMAS TREES WITH THEIR ROOT BALL WRAPPED IN BURLAP SACKS THAT CAN BE REPLANTED BUT THEY CAN BE TRICKY THEY CAN ONLY BE KEPT INSIDE FOR A WEEK TO 10 DAYS MUST BE CAREFULLY CHOSEN TO SURVIVE IN THE SPECIFIC LOCAL CLIMATE AND ARE LIMITED TO ABOUT SIX FEET IN SIZE BECAUSE THE ROOT BALLS OF BIGGER TREES GET TOO HEAVY BARBARA SPOLTER AN ASSOCIATE AT THE WILDERNESS SOCIETY'S SAN FRANCISCO OFFICE TRIED BUYING LIVING CHRISTMAS TREES FOR SEVERAL YEARS PLANTING THEM AFTER THE HOLIDAYS BUT THEY DIDN'T MAKE IT WITH HER TWO CHILDREN GROWN SHE FEELS LESS HOLIDAY PRESSURE SO NOW SHE JUST WRAPS LIGHTS AROUND HER SIXFOOTTALL FICUS BENJAMINA A DELICATE TROPICAL PLANT THAT SHE CHEERFULLY ADMITS LOOKS ABSOLUTELY NOTHING LIKE A CHRISTMAS TREE BUT WHILE THEY REMAIN A TINY FRACTION OF THE MARKET 5 OF REAL TREES SOLD SAY GROWERS THEY'RE A BOOMING PROPOSITION PARTICULARLY IN SOUTHERN CALIFORNIA AND OTHER TEMPERATE CLIMATES PRESIDENT AND MRS CLINTON USED LIVE TREES FOR SEVERAL YEARS IN ARKANSAS THOUGH NOW AT THE WHITE HOUSE CUT TREES ARE DONATED BY GROWERS THE NORTH CAROLINABASED LOWE'S COS RETAIL CHAIN SOLD 330 LIVE WHITE PINES LAST CHRISTMAS THIS YEAR WE SOLD 10000 AND COULD HAVE SOLD A LOT MORE IF WE'D HAD THEM EVEN AT TWICE THE PRICE OF CUT TREES SAYS GREG BRIDGEFORD VICE PRESIDENT OF MERCHANDISING 9312210112 931221 LETTERS TO THE EDITOR AMERICAN HISTORY SAVAGED ONCE AGAIN LET US ALL HEARTILY BEAT OUR TOMTOMS FOR DOROTHY RABINOWITZ'S BRILLIANT DEC 13 TOMAHAWK ATTACK ON TED TURNER'S IDIOTIC POLITICALLY CORRECT REVISIONISM OF AMERICAN INDIAN OOPS NATIVE AMERICAN HISTORY TURNER'S FRONTIER STORIES SHORT ON FACT LEISURE & ARTS WITH REGARD TO THE BROKEN CHAIN MR TURNER AND HIS FLUNKIES CONVENIENTLY FORGOT TO MENTION THAT MOHAWK IS ROUGHLY TRANSLATED AS FLESH EATERS AND WE'RE NOT TALKING ABOUT BUNNY RABBITS HERE MOREOVER THE IROQUOIS ARE GENERALLY ACKNOWLEDGED TO HAVE BEEN THE MOST RUTHLESSLY AGGRESSIVE AND WARLIKE OF ALL THE NORTH AMERICAN INDIANS AND HOLD A SPECIAL PLACE IN HISTORY AS THE ONLY GROUP EVER TO ENGAGE IN TRUE GENOCIDE ON THESE SHORES THEIR SAVAGE ELIMINATION OF THE HURON NATION THE ERIE THE DELAWARES THE MOHICANS REMEMBER THEM ETC REPRESENTS RACIAL WARFARE AT ITS MOST HEINOUS WORSE YET THE BRUTALITY WAS CARRIED OUT IN BEHALF OF THE FUR TRADE NOT ONLY WERE THE IROQUOIS BRILLIANT CONSTITUTIONAL LAWYERS ACCORDING TO MR TURNER AND OTHERS THE IROQUOIS LEAGUE OF INDIAN NATIONS WAS THE MODEL FOR WHAT BECAME THE US CONSTITUTION BUT WERE ALSO PREDATORY CAPITALISTS OF THE FIRST ORDER BEFORE ONE MORE LINE OF SCRIPT IS WRITTEN OR ONE MORE FOOT OF FILM SHOT ALL FUTURE HOLLYWOOD HISTORIANS OUGHT TO BE LOCKED IN A ROOM WITH THE WRITINGS OF THE GREAT FRANCIS PARKMAN AND NOT PERMITTED TO LEAVE BEFORE THEY ARE FULLY MEMORIZED 9312210110 931221 BUSINESS BRIEF SOUTHWESTERN BELL CORP CONCERN TO PAY 120 MILLION TO GTE FOR STAKE IN UNIT SOUTHWESTERN BELL CORP AGREED TO PAY GTE CORP 120 MILLION FOR A 10 STAKE IN DALLAS SMSA LP THE DALLASAREA CELLULARPHONE OPERATION OF WHICH SOUTHWESTERN BELL IS THE MAJORITY OWNER ALLTEL CORP BASED IN LITTLE ROCK ARK AGREED LAST MONTH TO BUY THE STAKE FOR THE SAME PRICE BUT SOUTHWESTERN BELL BASED IN SAN ANTONIO TEXAS EXERCISED ITS RIGHT OF FIRST REFUSAL 9312210109 931221 CREDIT MARKETS PRICES OF TREASURYS DECREASE AMID SPECULATION FED MAY RAISE SHORTTERM INTEREST RATES IN 1994 BY THOMAS D LAURICELLA AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK PRICES OF TREASURY NOTES AND BONDS DROPPED AS TRADERS SPECULATED THAT THE FEDERAL RESERVE MAY RAISE SHORTTERM INTEREST RATES NEXT YEAR AND BRACED FOR TWO GOVERNMENTNOTE AUCTIONS THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 1/4 POINT YESTERDAY OR MORE THAN 250 FOR A BOND WITH A 1000 FACE VALUE TO 99 7/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 630 FROM 628 ON FRIDAY THE 10YEAR NOTE DROPPED MORE THAN 1/4 POINT TO 99 15/32 TO YIELD 580 UP FROM 576 ON FRIDAY DEALERS STRESSED THAT TRADING ACTIVITY WAS EXTREMELY LIGHT AHEAD OF THE HOLIDAYS WITHOUT ANY FRESH NEWS TO ENLIVEN THE MARKET PRICES FLUCTUATED VERY LITTLE DURING THE SESSION A RENEWED FOCUS ON WHEN THE FEDERAL RESERVE WILL LIFT INTEREST RATES WAS THE DOMINANT TOPIC IN AN OTHERWISE QUIET SESSION AMID TALK THAT THE FED WILL HAVE TO RAISE RATES BEFORE SPRING PRICES OF SECURITIES MATURING IN FIVE YEARS AND UNDER WERE PUSHED LOWER IN EARLY TRADING THAT SELLING MET LITTLE RESISTANCE AND DRAGGED THE PRICES OF LONGER MATURITIES LOWER TOO THE PRICE OF THE FIVEYEAR NOTE DROPPED NEARLY 1/4 POINT TO 99 21/32 TO YIELD 519 UP FROM 514 WHAT PRICE MOVEMENT THERE WAS YESTERDAY TOOK PLACE IN EXTRAORDINARILY NARROW BANDS THE 30YEAR BOND FOR EXAMPLE WAS CONFINED TO A TINY QUARTERPOINT RANGE IT WAS DEADLY QUIET SAID MATTHEW ALEXY GOVERNMENT BOND MARKET STRATEGIST AT CS FIRST BOSTON CORP NOBODY WAS TAKING THE LEAD AND PUSHING PRICES ONE WAY OR ANOTHER SHORTER SECURITIES ALSO CAME UNDER PRESSURE AS DEALERS POSITIONED THEMSELVES FOR THIS WEEK'S AUCTIONS THE TREASURY IS SLATED TO SELL 17 BILLION IN TWOYEAR NOTES TODAY AND 11 BILLION IN FIVEYEAR NOTES TOMORROW DEALERS WORRIED THAT INVESTORS WILL BE AVERSE TO TAKING ON NEW SECURITIES THIS CLOSE TO YEAR END PUSHED THE YIELD ON BOTH SECURITIES HIGHER TO MAKE THEM MORE PALLATABLE TO UNDERWRITE IN WHENISSUED TRADING THE TWOYEAR NOTE WAS YIELDING 426 LATE YESTERDAY COMPARED WITH 423 AT THE END OF FRIDAY'S SESSION THE YIELD ON THE FIVEYEAR NOTE ROSE TO 521 FROM 518 FEW ANALYSTS SAID THEY BELIEVE THE FED IS ON THE VERGE OF RAISING RATES BUT AN ARTICLE IN YESTERDAY'S WALL STREET JOURNAL CONTENDING THAT THE POLICYMAKING FEDERAL OPEN MARKET COMMITTEE WILL LIKELY TILT TOWARD TIGHTENING AT TODAY'S MEETING HELPED SEND PRICES LOWER WHILE MANY ON WALL STREET EXPECT THE FED TO SHIFT AWAY FROM A NEUTRAL STANCE THIS WEEK TO HEAD OFF POTENTIAL INFLATION PRESSURES STEMMING FROM FASTER GROWTH THAT VIEW IS FAR FROM UNANIMOUS A VOCAL MINORITY ARGUE THAT THE FED HAS NO REASON TO LEAN TOWARD RESTRAINT JUST YET THEY SHOULD BE STANDING PAT THEY SHOULD NOT BE SWITCHING TO A TIGHTENING BIAS SAID SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP MINNEAPOLIS WHILE THE ECONOMY HAS CLEARLY PICKED UP STEAM IN THE FINAL QUARTER OF 1994 GROWTH WILL SLOW BACK DOWN TO A 25 TO 30 RATE DURING THE FIRST QUARTER HE PREDICTED AT THE SAME TIME THE INFLATION PICTURE IS ACTUALLY LOOKING BETTER NOT WORSE HE SAID THIS IS NOT THE CORRECT ENVIRONMENT FOR THE FED TO BE TIGHTENING EVEN AMONG ANALYSTS WHO BELIEVE THE FED WILL RAISE INTEREST RATES EARLY NEXT YEAR THERE WERE SOME WHO SAID IT IS INDEED TOO EARLY FOR THE FED TO CHANGE TOWARD A TIGHTENING BIAS INSTEAD THE FED SHOULD BE WAITING TO MAKE SURE THE RECENT FASTER PACE OF ECONOMIC GROWTH IS SUSTAINED THERE IS NO REASON FOR THESE GUYS TO RUSH SAID JERRY ZUKOWSKI ECONOMIST AT PAINEWEBBER THERE ISN'T YET ANY SIGN OF INFLATION AND ANOTHER MONTH OR TWO ISN'T GOING TO CHANGE THE INFLATION PROCESS THIS HAS BEEN A VERY HESITANT RECOVERY AND IF YOU ARE GOING TO TIGHTEN BASED ON GROWTH YOU'D BETTER BE SURE IT'S GOING TO STICK AROUND SOME ANALYSTS SEE THE FED AS POSSIBLY SUCCUMBING TO PRESSURE FROM CLINTON ADMINISTRATION OFFICIALS WHO HAVE BEEN VOCAL IN THEIR ARGUMENT THAT THERE IS NO NEED TO RAISE RATES AND A NUMBER ARE CONSIDERING WHAT APPEARS TO HAVE BEEN SOME BACKPEDALING IN STATEMENTS MADE BY FED OFFICIALS ON DEC 7 FED VICE CHAIRMAN DAVID MULLINS TOLD A WASHINGTON AUDIENCE THAT WHILE THERE WERE NOT YET SIGNS OF AN UPSWING OF ANY INFLATION THE FED CANNOT WAIT FOR PRICE PRESSURE TO BECOME EVIDENT IN OFFICIAL STATISTICS BEFORE ACTING THAT REMARK WAS FOLLOWED BY OTHERS WHICH SEEMED TO INDICATE THE FED WAS LAYING THE GROUNDWORK FOR HIGHER RATES BUT IN FRIDAY'S WASHINGTON POST SENIOR FED OFFICIALS WERE QUOTED AS SAYING THAT INFLATIONARY PRESSURES WON'T WARRANT A TIGHTENING OF POLICY THERE IS A GROWING TENSION BETWEEN THE CLINTON ADMINISTRATION AND THE FED SAID KATHLEEN CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ INC AND SUCH A TURNAROUND IN PUBLIC STATEMENTS COULD INDICATE THE ADMINISTRATION HAS THE UPPER HAND AND TO THE EXTENT THAT THE FED IS PERCEIVED TO BE SWAYED BY THE WISHES OF THE ADMINISTRATION THAT SHOULD BE TAKEN BEARISHLY BY THE BOND MARKET MS CAMILLI ADDED HOWEVER THAT SHE DIDN'T SEE A FUNDAMENTAL REASON FOR THE FED TO TILT TOWARD RAISING RATES THE FED WILL KEEP A NEUTRAL STANCE UNTIL THE DATA SUGGEST A PICKUP IN INFLATION MEANWHILE THE US TREASURY ALSO SOLD 2612 BILLION OF THREEMONTH AND SIXMONTH BILLS YESTERDAY AT ITS REGULAR WEEKLY AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 306 FOR A COUPONEQUIVALENT YIELD OF 312 THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 325 FOR A COUPONEQUIVALENT YIELD OF 335 HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED DEC 23 THE 13WEEK BILLS MATURE MARCH 24 1994 AND THE 26WEEK BILLS MATURE JUNE 23 1994 THE CORPORATEBOND MARKET HAS SLIPPED INTO ITS YEAREND SLUMBER WITH FEW ISSUES BEING PRICED YESTERDAY AND SECONDARY TRADING EXTREMELY THIN THE ONLY ACTION OF THE DAY CAME FROM THE FEDERAL HOME LOAN BANK SYSTEM WHICH PRICED ONE TRANSACTION OF THREEYEAR NOTES FOR A TOTAL OF 2545 MILLION IN THE INVESTMENTGRADE MARKET TRADING WAS THIN WITH PRICES FOLLOWING TREASURYS TRADING IN THE JUNKBOND MARKET WAS ALSO QUIET WITH PRICES ENDING UNCHANGED AFTER THE MARKET CLOSES TODAY SANTA FE HOTEL INC IS EXPECTED TO PRICE 115 MILLION OF SEVENYEAR FIRST MORTGAGE NOTES THROUGH DONALDSON LUFKIN & JENRETTE SECURITIES THE PAPER WHICH IS NONCALLABLE FOR FOUR YEARS IS RATED SINGLEB2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD & POOR'S CORP ACTIVITY IS NOT EXPECTED TO PICK UP TODAY PACIFIC MUTUAL LIFE INSURANCE CO PLANS TO SELL 150 MILLION OF 30YEAR NONCALLABLE SURPLUS NOTES IN THE 144A PRIVATE PLACEMENT MARKET THROUGH MERRILL LYNCH ALTHOUGH MUNICIPALBOND TRADING IS SLOWING TO A CRAWL BEFORE THE HOLIDAYS THE MARKET'S TONE IS QUITE STRONG IN LATE TRADING YESTERDAY DEKALB COUNTY GEORGIA'S 525 BONDS DUE 2023 WERE 3/8 POINT HIGHER AT 97 5/8 YIELDING 539 THE NEW YORK STATE POWER AUTHORITY'S 525 BONDS DUE 2018 WERE UP 3/8 AT 99 YIELDING 532 THIS WEEK'S NEGOTIATED PRICING LIST CURRENTLY INCLUDES LESS THAN 1 BILLION OF ISSUES THAT WOULD BE A BIG DROP FROM THE 53 BILLION OF NEGOTIATED BONDS THAT WERE AWARDED TO UNDERWRITERS AS OF THE WEEK ENDED LATE THURSDAY HELPING MUNIS IS BUYING INTEREST BEFORE AN EXPECTED SUPPLY SHORTAGE IN JANUARY WHEN THERE WILL BE ANOTHER ROUND OF HEAVY BOND CALLS AND REDEMPTIONS SANTA'S LOADING UP HIS SLEIGH WITH MUNICIPAL BONDS SAID A NEW YORK TRADING MANAGER FORECASTING CONTINUED GAINS FOR MUNIS IN THE NEAR TERM THE BULK OF THIS WEEK'S LIGHT ISSUANCE IS EXPECTED TO DEBUT TODAY AND MUCH OF IT WILL BE NEW YORK SECURITIES BIDS FOR NEW YORK STATE'S 80 MILLION GENERAL OBLIGATION IMPROVEMENT BONDS WILL BE TAKEN IN NEGOTIATED FINANCING ACTIVITY THE NEW YORK STATE URBAN DEVELOPMENT CORP'S 550 MILLION SERIES 1993A CORRECTIONAL CAPITAL FACILITIES REFUNDING BONDS ARE SCHEDULED TO BE PRICED BY A GOLDMAN SACHS GROUP THE NEW SUPPLY IS EXPECTED TO BE GOBBLED UP IF IT'S ATTRACTIVELY PRICED CURRENT COUPON MORTGAGEBACKED SECURITIES WERE ENDING LOWER YESTERDAY AMID MODEST PRESSURE FROM AN INFUSION OF NEW SUPPLY GINNIE MAE 65S FOR JANUARY DELIVERY WERE DOWN 5/32 AT 99 4/32 FREDDIE MAC GOLD 65S WERE DOWN 6/32 AT 99 7/32 AND FANNIE MAE 65S WERE DOWN 6/32 AT 99 3/32 THE TREASURY'S 10YEAR NOTE ENDED DOWN 10/32 AT 99 17/32 TO YIELD 5813 THE SUPPLY PRESSURE CAME FROM MORTGAGE BANKERS SELLING SECURITIES BACKED BY NEWLY ORIGINATED MORTGAGE LOANS A 30YEAR TRADER AT ONE INVESTMENT BANK EXPECTS TO SEE A STEADY STREAM OF NEW SUPPLY THROUGH THE END OF THE YEAR THE SELLING COULD CAUSE YIELDS ON CURRENT COUPONS TO WIDEN A SLIGHT THREE TO FIVE BASIS POINTS BEFORE JANUARY LARGELY BECAUSE FEW CUSTOMERS ARE INTERESTED IN BUYING RIGHT NOW THE TRADER SAYS THESE ENDOFTHEYEAR PRESSURES ARE COMING AS SEVERAL FIRMS ACROSS WALL STREET TURN BULLISH ON MORTGAGES MANY HAVE NOTICED PORTFOLIO MANAGERS UNDERWEIGHTED IN ALLOCATIONS OF MORTGAGEBACKED SECURITIES AND ARE ENOURAGING THEM TO RECONSIDER THE MARKET IN THE PRIMARY MARKET THE FEDERAL HOME LOAN MORTGAGE CORP ANNOUNCED A 500 MILLION REMIC SERIES 19931663 BACKED BY THE AGENCY'S 30YEAR 7 SECURITIES AND THE INCREASE OF REMIC SERIES 19931658 ALSO BACKED BY THE AGENCY'S 30YEAR 7S TO 500 MILLION FROM 300 MILLION 9312210108 931221 BUSINESS BRIEF EQUITABLE RESOURCES INC PLANNED CAPITAL SPENDING FOR 1994 TOTALS 151 MILLION EQUITABLE RESOURCES INC SAID IT PLANS TO SPEND 151 MILLION DURING 1994 ON ITS CAPITAL BUDGET PROGRAM THE PITTSBURGH NATURALGAS AND OIL CONCERN SAID IT WILL DEDICATE 85 MILLION TO NATURALGAS AND OIL ACTIVITIES MAINLY FOR DEVELOPMENT EXPLORATION AND PRODUCTION AND 47 MILLION TO NATURALGAS DISTRIBUTION AND INTERSTATE PIPELINE OPERATIONS THE REST WILL BE INVESTED IN INFORMATION AND COMMUNICATIONS SYSTEMS EQUITABLE SAID THE CAPITAL BUDGET DOESN'T INCLUDE POTENTIAL NATURALGAS STORAGE AND PIPELINE PROJECTS IN THE APPALACHIAN AND GULF COAST REGIONS OR THE POSSIBILITY OF FUTURE GAS AND OIL PROPERTY ACQUISITIONS IN THE GULF COAST AREA AND CANADA EQUITABLE SAID 9312210107 931221 LAW LEGAL BEAT ALYESKA SETTLES SUIT OVER EFFORT TO SPY ON WHISTLEBLOWER BY CHARLES MCCOY AND RICHARD B SCHMITT STAFF REPORTERS OF THE WALL STREET JOURNAL ALYESKA PIPELINE SERVICE CO AGREED TO A MULTIMILLIONDOLLAR SETTLEMENT OF AN INVASIONOFPRIVACY LAWSUIT BY A WHISTLEBLOWER STEMMING FROM A SPYING CAMPAIGN THAT ALYESKA MOUNTED AGAINST HIM THE OUTCOME WAS HAILED BY WHISTLEBLOWER ADVOCATES AS AN IMPORTANT LEGAL VICTORY FOR CORPORATE CRITICS IN PART BECAUSE OF SEVERAL PRETRIAL RULINGS BY FEDERAL JUDGE STANLEY SPORKIN IN WASHINGTON THAT APPEAR TO ESTABLISH OR ADVANCE PRECEDENTS BOLSTERING PROTECTIONS FOR THOSE WHO REPORT CORPORATE WRONGDOING PRECISE TERMS OF THE SETTLEMENT WERE NOT DISCLOSED BUT ALYESKA AND ITS OWNERS INCLUDING EXXON CO BRITISH PETROLEUM LTD AND ATLANTIC RICHFIELD CO HAVE SPENT MORE THAN 10 MILLION JUST TO DEFEND THE SUIT AND THE SETTLEMENT REQUIRES A PAYMENT OF MILLIONS MORE ACCORDING TO PEOPLE FAMILIAR WITH IT THE SUIT STEMMED FROM THE ELABORATE CAMPAIGN THAT ALYESKA MOUNTED AGAINST WHISTLEBLOWER CHUCK HAMEL AND HIS ASSOCIATES IN 1990 AFTER MR HAMEL REPEATEDLY HAD TIPPED OFF REGULATORS AND CONGRESS ABOUT ALLEGED ENVIRONMENTAL WRONGDOING ALONG THE TRANSALASKA PIPELINE MR HAMEL RECEIVED MUCH OF THE INFORMATION FROM WORKERS INSIDE ALYESKA WHICH RUNS THE PIPELINE FOR THE OIL COMPANIES ALYESKA DOESN'T CONTEST THAT DURING ITS CAMPAIGN AGAINST MR HAMEL ITS OPERATIVES SECRETLY TAPED MR HAMEL'S PHONE CALLS AND RIFLED THROUGH MAIL GARBAGE PHONE RECORDS AND CREDIT RECORDS OF HIM AND SEVERAL ASSOCIATES THEY EVEN EMPLOYED ATTRACTIVE FEMALE OPERATIVES TO TRY TO ENTICE MR HAMEL INTO ADMISSIONS OR ACTIONS THAT MIGHT DISCREDIT HIM BUT THE COMPANY HAS CLAIMED THAT THE ACTIONS WERE LAWFUL AND LEGITIMATE ATTEMPTS TO RETRIEVE DOCUMENTS IT ALLEGES MR HAMEL STOLE FROM THE COMPANY ALYESKA SAID THAT IT AND OTHER PARTIES TO THE SETTLEMENT AREN'T CONCEDING ANY WRONGDOING IN A RULING LAST MONTH THAT HELPED GREASE THE SETTLEMENT JUDGE SPORKIN NOTED THAT WHISTLEBLOWERS ARE OFTEN RETALIATED AGAINST BY THEIR EMPLOYERS AND HELD THAT MR HAMEL COULD NOT BE REQUIRED TO DIVULGE HIS SOURCES UNLESS ALYESKA AGREED TO GUARANTEE THOSE SOURCES LIFETIME EMPLOYMENT ALYESKA DECLINED AND THE SOURCES WEREN'T DISCLOSED WHISTLEBLOWER ADVOCATES SAY JUDGE SPORKIN IS THE FIRST FEDERAL JUDGE AND PERHAPS THE FIRST JUDGE AT ANY LEVEL TO INSIST ON SUCH PROTECTIONS FOR SOURCES MOREOVER TWO WEEKS AGO JUDGE SPORKIN ADVISED ATTORNEYS IN THE CASE THAT HE INTENDED TO RULE THAT THE SECRET TAPING OF MR HAMEL WAS ILLEGAL A DEVASTATING BLOW TO ALYESKA'S DEFENSE ALTHOUGH THAT RULING WAS NEVER FORMALIZED IT ALSO WAS SEEN AS POTENTIALLY LIMITING THE KINDS OF ACTIVITIES THAT COMPANIES MAY BE WILLING TO ENGAGE IN TO FERRET OUT CRITICS JUDGE SPORKIN'S RULINGS WILL REVERBERATE IN WHISTLEBLOWER CASES FOR YEARS SAID LOUIS CLARK EXECUTIVE DIRECTOR OF THE GOVERNMENT ACCOUNTABILITY PROJECT A WHISTLEBLOWER LEGAL SUPPORT GROUP HE HAS SAID A COMPANY MUST IN EFFECT POST A BOND TO PROTECT WHISTLEBLOWERS FROM RETALIATION IF THEY WANT TO LEARN THEIR IDENTITIES THROUGH LEGAL ACTION IN COMMENTS AFTER THE SETTLEMENT WAS ENTERED IN FEDERAL COURT JUDGE SPORKIN OBSERVED NO ONE SHOULD BE SUBJECTED TO THE KIND OF TREATMENT THE HAMELS WERE EARLIER IN THE PROCEEDINGS JUDGE SPORKIN HAD DESCRIBED THE DETAILS OF ALYESKA'S SPY OPERATION AGAINST MR HAMEL AS HORRENDOUS AND REMINISCENT OF NAZI GERMANY WACKENHUT CORP THE MIAMIBASED SECURITY CONCERN THAT RAN THE SPY CAMPAIGN FOR ALYESKA WAS INCLUDED IN THE SETTLEMENT AND WILL BE REQUIRED TO HELP FUND IT MR HAMEL IS NOT ENJOINED FROM FUTURE WHISTLEBLOWING AGAINST ALYESKA THOUGH HE DID AGREE TO RELINQUISH CERTAIN TYPES OF DOCUMENTS SHOULD THEY FALL INTO HIS HANDS IN THE FUTURE THE AFFAIR HAD ITS ROOTS IN THE EARLY 1980S WHEN MR HAMEL AN OIL BROKER BY TRADE GOT INVOLVED IN A BUSINESS DISPUTE WITH ALYESKA THAT HE SAYS COST HIM MILLIONS OF DOLLARS MR HAMEL THEN BEGAN FUNNELLING TIPS ABOUT ALYESKA'S ALLEGED ENVIRONMENTAL WRONGDOING AND INTERNAL ALYESKA DOCUMENTS TO REGULATORS AND CONGRESS AND EVENTUALLY ACCUMULATED A SIZABLE NETWORK OF WHISTLEBLOWERS WITHIN ALYESKA IN 1990 IN AN EFFORT TO STOP MR HAMEL ALYESKA HIRED WACKENHUT TO SET UP A BOGUS ENVIRONMENTAL ORGANIZATION CALLED ECOLIT IT OFFERED TO HELP MR HAMEL PURSUE LITIGATION AGAINST THE OIL INDUSTRY BUT THE REAL PURPOSE ALYESKA HAS ACKNOWLEDGED WAS TO GATHER EVIDENCE SUPPORTING THE ALLEGATION THAT HE HAD STOLEN DOCUMENTS THE OPERATION WAS SHUT DOWN AFTER SEVEN MONTHS BY ALYESKA'S OWNER OIL COMPANIES A SUBSEQUENT CONGRESSIONAL INVESTIGATION CONCLUDED THAT THE OPERATION MAY HAVE VIOLATED CRIMINAL LAWS AND ASKED THE JUSTICE DEPARTMENT TO LOOK INTO THE MATTER SO FAR THE JUSTICE DEPARTMENT HAS DECIDED NOT TO PURSUE ANY CRIMINAL CHARGES STEMMING FROM THE CASE FROM THE START OF THE CASE JUDGE SPORKIN REPEATEDLY URGED ALYESKA TO CONSIDER SETTLING HE SPARRED WITH DEFENSE LAWYERS AND CHIDED THEM FOR REFUSING TO ENTER SETTLEMENT TALKS AT ONE POINT HE THREATENED TO FIND ROBERT JORDAN LEAD COUNSEL FOR THE DEFENSE AND A FORMER HEAD OF THE WASHINGTON BAR IN CRIMINAL CONTEMPT BECAUSE OF A BRIEF MR JORDAN SUBMITTED CRITICIZING JUDGE SPORKIN IN OCTOBER JUDGE SPORKIN RULED AGAINST A DEFENSE MOTION SEEKING TO COMPEL A NEWSPAPER REPORTER TO DIVULGE SOURCES ALTHOUGH COURTS COMMONLY PROTECT REPORTERS' SOURCES THEY DON'T ALWAYS DO SO AND WHISTLEBLOWER ADVOCATES SAY THIS RULING WAS SIGNIFICANT BECAUSE THE INFORMATION SOUGHT BY ALYESKA WAS IMPORTANT FOR ITS DEFENSE THIS RULING WAS FOLLOWED BY THE ONE PROTECTING MR HAMEL'S SOURCES WITHIN ALYESKA THREE MORE BUSINESS ASSOCIATES OF FORMER SAVINGS AND LOAN EXECUTIVE CHARLES H KEATING JR ALL OF WHOM HAD PLEADED GUILTY TO CRIMES INVOLVED IN THE COSTLY COLLAPSE OF LINCOLN SAVINGS & LOAN ASSOCIATION WERE SENTENCED TO PROBATION INSTEAD OF JAIL TIME BECAUSE OF THEIR COOPERATION WITH THE GOVERNMENT US DISTRICT JUDGE ROBERT TAKASUGI IN LOS ANGELES SENTENCED MARK S SAUTER A FORMER LAWYER FOR LINCOLN PARENT AMERICAN CONTINENTAL CORP TO FOUR YEARS PROBATION AND ORDERED HIM TO PERFORM 2000 HOURS OF COMMUNITY SERVICE MR SAUTER 39 YEARS OLD HAD PLEADED GUILTY TO CONSPIRACY AND EMBEZZLEMENT OF 16 MILLION MEANWHILE US DISTRICT JUDGE MARIANA PFAELZER SENTENCED ERNEST C GARCIA II 36 AND RAYMOND C FIDEL 36 EACH TO THREE YEARS PROBATION THEY WERE THE FIRST TWO INDIVIDUALS TO STRIKE DEALS WITH FEDERAL PROSECUTORS AND PROVIDED INFORMATION THAT IMPLICATED EIGHT OTHERS INCLUDING MR KEATING WHO CONTROLLED NOWDEFUNCT LINCOLN SAVINGS THROUGH AMERICAN CONTINENTAL LINCOLN BASED IN IRVINE CALIF WAS THE COSTLIEST US THRIFT FAILURE MR GARCIA AN ARIZONA REAL ESTATE DEVELOPER PLEADED GUILTY TO FRAUDULENTLY RECEIVING LOANS FROM LINCOLN MR FIDEL A FORMER LINCOLN PRESIDENT PLEADED GUILTY TO SECURITIES FRAUD IN CONNECTION WITH THE SALE OF AMERICAN CONTINENTAL BONDS MR SAUTER'S LAWYER GORDON GREENBERG SAID HIS CLIENT'S SENTENCE WAS FAIR AND JUST DAVID W WIECHERT WHO REPRESENTS MR FIDEL SAID RAY AND HIS FAMILY ARE VERY GRATEFUL THAT THIS CHAPTER OF THEIR LIVES RELATING TO LINCOLN SAVINGS AND LOAN ASSOCIATION IS OVER MR GARCIA'S LAWYER WASN'T AVAILABLE FOR COMMENT BENJAMIN A HOLDEN CONTRIBUTED TO THIS ARTICLE 9312210106 931221 HANSON IS SAID TO CONSIDER BID FOR BORDEN INC TALKS BETWEEN TWO FIRMS REPORTEDLY GOT STARTED OVER THREE WEEKS AGO BY LAURIE P COHEN AND SUEIN L HWANG STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK HANSON PLC IS CONSIDERING AN OFFER FOR BELEAGUERED BORDEN INC ACCORDING TO PEOPLE FAMILIAR WITH DISCUSSIONS BETWEEN THE TWO COMPANIES INVESTMENT BANKERS AT THE FIRM OF LAZARD FRERES & CO WHICH REPRESENTS BORDEN'S BOARD BEGAN TALKING TO OFFICIALS OF HANSON INDUSTRIES THE US UNIT OF THE BRITISHAMERICAN INDUSTRIAL CONGLOMERATE MORE THAN THREE WEEKS AGO THESE PEOPLE SAID AS PREVIOUSLY REPORTED BORDEN'S BOARD IS CONSIDERING SELLING THE ENTIRE FOOD AND CHEMICALS COMPANY AS WELL AS LOOKING AT ALTERNATIVES SUCH AS THE SALE OF UNITS BORDEN HAS BEEN STRUGGLING WITH DECLINING PROFITS IN ITS DISPARATE BUSINESSES WHICH RANGE FROM HOUSEHOLD GLUES TO MILK PEOPLE FAMILIAR WITH HANSON'S DISCUSSIONS WITH BORDEN SAY A PURCHASE OF THE ENTIRE COMPANY IS FAR FROM CERTAIN THEY'RE DOING THE DUE DILIGENCE RIGHT NOW SAID ONE PERSON WHO HAS ATTENDED BORDEN'S BOARD MEETINGS HANSON HAD BEEN INTERESTED IN ACQUIRING PIECES OF BORDEN'S BUSINESS AS EARLY AS JUNE BUT ONLY RECENTLY BEGAN LOOKING AT THE ENTIRE COMPANY PEOPLE FAMILIAR WITH TALKS BETWEEN THE TWO COMPANIES SAID IF HANSON BIDS AT ALL IT IS LIKELY TO OFFER LESS THAN 23 A SHARE FOR EACH OF BORDEN'S 141 MILLION SHARES OUTSTANDING OR A TOTAL OF ABOUT 32 BILLION BORDEN'S BREAKUP VALUE IS ESTIMATED BY ANALYSTS TO BE ABOUT IN THE LOW 20S A BORDEN SPOKESMAN DECLINED TO COMMENT ON THE POSSIBLE SALE OF THE COMPANY HANSON INDUSTRIES OFFICIALS WERE SAID TO BE AT THEIR ANNUAL CHRISTMAS PARTY YESTERDAY AND WEREN'T AVAILABLE TO COMMENT ON THE TALKS HANSON ISN'T THE FIRST COMPANY TO CONSIDER BUYING BORDEN ACCORDING TO INDIVIDUALS FAMILIAR WITH BORDEN'S EFFORTS TO SELL ITSELF SEVERAL OTHER PARTIES HAVE KICKED BORDEN'S TIRES AND PASSED ON THE OPPORTUNITY TO MAKE BIDS AMONG THEM ARE KOHLBERG KRAVIS ROBERTS & CO THE NEW YORK LEVERAGED BUYOUT FIRM WHICH WAS FIRST APPROACHED BY BORDEN'S INVESTMENT BANKER LAST MONTH KKR OFFICIALS ARE UNDERSTOOD TO HAVE TAKEN A HARD LOOK AT BORDEN AND TO HAVE CONCLUDED THAT IT WOULD BE DIFFICULT TO SELL OFF PIECES AND TURN A PROFIT FROM THE OWNERSHIP OF BORDEN IN A TIMELY MANNER IF AT ALL A SPOKESWOMAN FOR KKR YESTERDAY DECLINED TO COMMENT THE IDEA TO SELL THE ENTIRE COMPANY CAME FROM NEW YORK TAKEOVER LAWYER MARTIN LIPTON WHO WAS INITIALLY RETAINED BY MR D'AMATO TO HELP BORDEN RESTRUCTURE ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION MR LIPTON THEN SUGGESTED THAT THE BOARD RETAIN LAZARD PARTNER LOUIS PERLMUTTER TO ASSIST WITH A SALE NEITHER MR LIPTON NOR MR PERLMUTTER COULD BE REACHED FOR A COMMENT YESTERDAY BORDEN HAS BEEN DESCRIBED BY ANALYSTS AS A TOUGH SELL BECAUSE IT IS INVOLVED IN DIVERSE BUSINESSES BUT HANSON A COMPANY WITH 156 BILLION IN ANNUAL SALES WAS CREATED THROUGH TWO DECADES OF ACQUISITIONS ITS PORTFOLIO INCLUDES TIMBER CHEMICALS TOBACCO AND COSMETICS IN OCTOBER HANSON AGREED TO BUY NEW YORKBASED QUANTUM CHEMICAL CORP FOR 720 MILLION IN STOCK AND THE ASSUMPTION OF 25 BILLION IN DEBT BOOSTING HANSON'S US REVENUE TO ABOUT 96 BILLION OR MORE THAN HALF OF THE COMPANY'S TOTAL 9312210105 931221 MARKETING & MEDIA ADVERTISING WELLS RICH PITCHES FOR BETTER SLOTS IN FIGHT AGAINST DRUNKEN DRIVING BY KEVIN GOLDMAN AN AD AGENCY HAS TAKEN THE UNUSUAL STEP OF PRODDING THE TELEVISION NETWORKS TO GIVE MORE PROMINENT PLAY TO PUBLIC SERVICE ANNOUNCEMENTS AIMED AT CURBING DRUNKEN DRIVING THE AGENCY WELLS RICH GREENE BDDP HAS PRODUCED A NEW CAMPAIGN FOR THE ADVERTISING COUNCIL A NONPROFIT EDUCATIONAL ORGANIZATION SUPPORTED BY ADVERTISERS AD AGENCIES AND THE MEDIA BUT THE AGENCY CONTENDS THAT THE CAMPAIGN'S MAIN TARGET YOUNG MEN SELDOM SEE THE ADS BECAUSE DRUNKENDRIVING SPOTS ARE RARELY AIRED DURING PRIME TIME LATE LAST MONTH KENNETH S OLSHAN WELLS RICH'S CHAIRMAN AND CHIEF EXECUTIVE WROTE TO THE HEADS OF THE FOUR MAJOR BROADCAST NETWORKS ASKING THEM TO HELP ENSURE THAT THESE MESSAGES ARE SEEN BY THE PEOPLE TO WHOM THEY ARE DIRECTED WHILE HIS TWOPAGE SINGLESPACE LETTER APPLAUDED THE NETWORKS FOR HAVING DONATED SIGNIFICANT AMOUNTS OF AIRTIME TO A DRUNK DRIVING PREVENTION CAMPAIGN MR OLSHAN ARGUED THAT THE NETWORKS RARELY PLACE THE ADS IN THE MOST EFFECTIVE TIME SLOTS FOR EXAMPLE HE CITED A 1992 AD COUNCIL STUDY SHOWING THAT ONLY 4 OF PUBLIC SERVICE ANNOUNCEMENTS OR PSAS ON DRUNKEN DRIVING RAN DURING PRIME TIME ON LOCAL BROADCAST STATIONS AND THE FOUR MAJOR BROADCAST NETWORKS BY CONTRAST 25 OF PSAS RAN IN EARLY MORNING 7 AM9 AM 16 IN LATE FRINGE 11 PM1 AM 45 IN LATE NIGHT 1 AM7 AM AND 10 DURING DAYTIME 7 AM4 PM THE AD COUNCIL SAYS IT DOESN'T HAVE EXACT DATA ON THE NUMBER OF PSAS AIRED LAST YEAR ITS STUDY REFLECTS THE MOST RECENT DATA AVAILABLE MOREOVER TRACKING INDIVIDUAL PSAS IS DIFFICULT BECAUSE NOT ALL STATIONS AIR THE SAME PSA AT THE SAME TIME IN HIS LETTER MR OLSHAN WROTE THAT THE LATEST ADS FOR THE FRIENDS DON'T LET FRIENDS DRIVE DRUNK CAMPAIGN AIM TO PREVENT THESE UNNECESSARY DEATHS BY TRYING TO CONVINCE PEOPLE TO STOP THEIR FRIENDS FROM DRINKING AND DRIVING I AM WRITING TO YOU PERSONALLY TO URGE YOU TO HELP OUR CAMPAIGN GET THE TIME SLOT IT NEEDS IN AN INTERVIEW MR OLSHAN SAYS THIS IS THE CLASSIC ADVERTISING PROBLEM YOUNG MEN CAUSE MANY OF THE DRUNKDRIVINGRELATED ACCIDENTS BUT THIS IS TRADITIONALLY A DIFFICULTTOREACH DEMOGRAPHIC THE LAST PLACE THESE ADS ARE SEEN ARE ON SPORTS EVENTS AND PRIME TIME MR OLSHAN SAYS THE ONLY RESPONSE HE RECEIVED CAME FROM CAPITAL CITIES/ABC WHICH SAID IT WOULD TRY TO WORK WITH THE AD COUNCIL TO SCHEDULE THE SPOTS APPROPRIATELY WELLS RICH'S NEW SERIES OF THREE ADS WAS MADE AVAILABLE TO BROADCASTERS LATE LAST MONTH GENERAL ELECTRIC'S NBC AND FOX A UNIT OF NEWS CORP EACH HAVE AIRED ONE OF THE SPOTS ALREADY SPOKESMEN FOR CBS AND ABC SAY THEY AREN'T SURE WHETHER ANY OF THE THREE PSAS WERE BROADCAST ON THEIR NETWORKS YET BUT SAID THEY WOULD BE THE CBS SPOKESMAN ADDS OVER THE HOLIDAYS WE STEPPED UP THE FREQUENCY OF DRUNKDRIVING ANNOUNCEMENTS IT'S IMPORTANT ALL YEAR BUT ESPECIALLY AROUND THIS TIME OF THE YEAR THE NEW PSAS ARE EMOTIONALLY JOLTING USING ACTUAL VICTIMS IN A HARROWING DOCUMENTARYLIKE EXECUTION THAT CONNECTS AN ABSTRACT STATISTIC TO A REAL HUMAN LIFE IN ONE SPOT A BEAUTIFUL TOWHEADED GIRL SMILES AS A CAMCORDER ROLLS OFFSCREEN HER MOTHER IS HEARD CHATTING WITH THE YOUNGSTER WHO'S DRESSED IN A COWBOY OUTFIT THEN THESE WORDS LOOM ON THE SCREEN ANDREA HARRIS KILLED BY A DRUNK DRIVER ON AUG 26 1991 ON EL CAMERO ROAD IN ATASCADERO CALIF A SOMBER VOICEOVER INTONES NEXT TIME YOUR FRIEND WANTS TO DRIVE DRUNK DO WHATEVER IT TAKES TO STOP HIM IN ANOTHER SPOT A SERIES OF 16 PHOTOGRAPHS APPEAR RANGING FROM SHOTS OF YOUNGSTERS TO FAMILIES TO NEWLYWEDS SUPERIMPOSED ON EACH PHOTO IS THE DATE OF EVERY PERSON'S DEATH AS A RESULT OF DRUNKEN DRIVING DRUNKENDRIVING PSAS VIE WITH OTHER CAUSES FOR AIRTIME IN THE NEXT FEW MONTHS FOX FOR EXAMPLE WILL EMPHASIZE A STOP THE HATE PUBLICAWARENESS CAMPAIGN SAYS HELEN BOEHM FOX BROADCASTING'S VICE PRESIDENT OF PUBLIC SERVICE AND ITS CHILDREN'S NETWORK AND NBC SAYS THAT WHILE IT WILL AIR THE SPOT IN PRIME TIME AND ON THE TONIGHT SHOW WITH JAY LENO IT ISN'T CONVINCED THAT SUCH ALARMING ADS ARE THE WAY TO GO IN THE BATTLE AGAINST DRUNKEN DRIVING NBC CREATED ITS OWN PUBLICAWARENESS CAMPAIGN UNDER THE UMBRELLA THE MORE YOU KNOW IN WHICH THE NETWORK ENLISTS STARS OF ITS PRIMETIME SHOWS SUCH AS BLOSSOM SAVED BY THE BELL AND THE JOHN LARROQUETTE SHOW TO SPEAK OUT AGAINST DRUG AND ALCOHOL ABUSE THE ADS FEATURING BLAIR UNDERWOOD FROM LA LAW SHUN SCARE TACTICS INSTEAD THE ACTOR DESCRIBES WHAT HE FINDS ATTRACTIVE IN WOMEN AND MORE TO THE POINT WHAT HE DOESN'T A WOMAN WHO DRINKS TOO MUCH TURNS HIM OFF SOMETIMES A STAR TALKING IS BETTER THAN SCARING A 20YEAROLD SAYS ROSALYN WEINMAN NBC'S VICE PRESIDENT OF BROADCAST STANDARDS AND PRACTICES MS WEINMAN SAYS IT'S DIFFICULT TO DRIVE HOME THE NOTION OF MORTALITY TO YOUNG PEOPLE SUGGESTING THAT DRINKING AND TAKING DRUGS MAY BE UNATTRACTIVE TO THE OPPOSITE SEX HAS MORE IMPACT SHE SAYS RUTH A WOODEN PRESIDENT OF THE AD COUNCIL TAKES PAINS TO APPLAUD THE NETWORKS FOR DONATING TIME FOR PUBLIC SERVICE ANNOUNCEMENTS WE DON'T EXPECT A LOT OF EXPOSURE IN PRIME TIME SHE SAYS THIS IS A BUSY TIME FOR THE NETWORKS AND THERE AREN'T A LOT OF AVAILABILITIES NONETHELESS SHE SAYS WE NEED TO EMPHASIZE THAT THE MESSAGES ARE SEEN BY THE RIGHT PEOPLE GIVEN A HYPOTHETICAL UNLIMITED AD COUNCIL BUDGET FOR THE NEW DRUNKENDRIVING SPOTS MR OLSHAN OF WELLS RICH SAYS THAT THE AGENCY WOULD RECOMMEND SPENDING SPENDING AND SPENDING ON CBS'S LETTERMAN THE SUPER BOWL THE FOOTBALL PLAYOFFS AND MANY OTHER SPORTING EVENTS CONCEDING THAT SUCH PLACEMENT OBVIOUSLY WOULD BE PROHIBITIVELY EXPENSIVE HE ADDS WITH ALL THE NETWORKS UNDER ATTACK FROM WASHINGTON AND PUBLICINTEREST GROUPS ON VIOLENCE IN THEIR PROGRAMS HERE IS A CHANCE TO DO SOMETHING GOOD LET'S HOPE THEY ANSWER THE CALL INTERPUBLIC GROUP'S LINTAS SAVED SOME BILLINGS AND SOME FACE ON THE DIET COKE ACCOUNT THE AGENCY WHICH LOST THE BIG US PORTION OF THE ACCOUNT TWO MONTHS AGO SALVAGED THE INTERNATIONAL PORTION INDUSTRY EXECUTIVES SAID COCACOLA CO DECLINED TO COMMENT ON WHAT IT TERMED SPECULATION BUT KNOWLEDGABLE EXECUTIVES SAID LINTAS PREVAILED OVER TWO CHALLENGERS INCLUDING D'ARCY MASIUS BENTON & BOWLES AND SISTER AGENCY MCCANNERICKSON THE ACCOUNT IS EXPECTED TO BE BASED IN LINTAS'S PARIS OFFICE ALTHOUGH BILLINGS COULDN'T BE DETERMINED ADWEEK MAGAZINE ESTIMATED THEM AT 60 MILLION TO 70 MILLION IN A REPORT OF THE REVIEW'S OUTCOME WHILE PHILIP MORRIS COS'S MARLBORO ADVENTURE TEAM PROMOTION WILL END IN FEBRUARY THE TOBACCO COMPANY SAID IT'S LIKELY TO TRY SIMILAR PROMOTIONS NEXT YEAR AS WE LOOK OUT OVER THE NEXT YEAR OR TWO YOU WILL SEE OTHER EVENTS PLANNED FOR MARLBORO SAID A PHILIP MORRIS SPOKESWOMAN CONTINUITY PROMOTIONS HAVE WORKED VERY WELL FOR THE BRANDS IN THE WIDELY ADVERTISED PROMOTION CONSUMERS SENT IN PROOFSOFPURCHASE FROM INDIVIDUAL MARLBORO CIGARETTE PACKS IN EXCHANGE FOR MERCHANDISE SUCH AS LIGHTERS AND JACKETS PHILIP MORRIS SAID FOUR MILLION PEOPLE SENT IN COUPONS ORDERING 14 MILLION ITEMS ANALYSTS ESTIMATE THAT PHILIP MORRIS SPENT 250 MILLION OR 10 OF ITS MARKETING BUDGET ON THE PROMOTION OFFICIALS AT RJR NABISCO HOLDINGS CORP SAY THEY HAVE NO PLANS TO DISCONTINUE THEIR RIVAL CAMEL CASH PROGRAM WHICH ALSO EXPIRES IN FEBRUARY NONETHELESS ANALYSTS EXPECT RJR TO CURTAIL ITS PROMOTION SAATCHI SAATCHI & SAATCHI CO PLC THE BRITISH AGENCY HOLDING COMPANY SAID ITS TWO FOUNDERS THE BROTHERS MAURICE AND CHARLES SAATCHI WILL DIVIDE AND OWN SEPARATELY ABOUT 18 MILLION SAATCHI SHARES OR LESS THAN 1 OF THE 220 MILLION SHARES OUTSTANDING THE SHARES HAVE BEEN JOINTLY OWNED MAURICE SAATCHI IS CHAIRMAN OF THE COMPANY CHARLES SAATCHI RECENTLY RESIGNED FROM THE BOARD WHO'S NEWS PERRY KATZ WAS NAMED EXECUTIVE VICE PRESIDENT OF MARKETING AT UNIVERSAL PICTURES A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL'S MCA HE HAD BEEN SENIOR VICE PRESIDENT SINCE 1989 9312210104 931221 FINANCING BUSINESS PARCPLACE SYSTEMS INC PARCPLACE SYSTEMS INC SUNNYVALE CALIF REGISTERED TO GO PUBLIC IN A 203 MILLIONSHARE OFFERING EXPECTED TO RAISE UP TO 244 MILLION THE SOFTWARE COMPANY ORIGINALLY A SPINOFF FROM XEROX CORP HELPED PIONEER A FIELD CALLED OBJECTORIENTED PROGRAMMING ITS SOFTWARE LETS USERS CUSTOMTAILOR APPLICATION PROGRAMS FROM REUSABLE CHUNKS OF COMPUTER CODE PARCPLACE SAID 230000 SHARES ARE BEING OFFERED BY SELLING SHAREHOLDERS XEROX PLANS TO SELL ABOUT 111000 SHARES IN THE COMPANY DECREASING ITS STAKE TO 47 FROM 85 PARCPLACE SAID IT EXPECTS THE OFFERING TO BE PRICED AT BETWEEN 10 AND 12 9312210102 931221 REALESTATE SWAPS COULD BECOME HOT PROPERTY BY MITCHELL PACELLE AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL TAKE ONE BANK OR PENSION FUND STUCK WITH LOTS OF POORLY PERFORMING REAL ESTATE ADD AN ENTHUSIASTIC INVESTOR EAGER TO JUMP INTO WHAT HE HOPES IS A RISING REALESTATE MARKET MIX THEM UP WITH SOME OF WALL STREET'S FINANCIAL ALCHEMISTS AND PRESTO THE REALESTATE SWAP IS BORN SWAPS ARE NOTHING NEW TO BIG FINANCIAL INSTITUTIONS THAT USE THEM EXTENSIVELY TO HEDGE AGAINST ADVERSE MOVES IN INTEREST RATES AND FOREIGNEXCHANGE RATES AS WELL AS TO SPECULATE IN THOSE MARKETS BUT APPLYING SWAP TECHNOLOGY TO AN ILLIQUID MARKET SUCH AS REAL ESTATE WAS UNTIL RECENTLY CONSIDERED NEXT TO IMPOSSIBLE A LOT OF THE OTHER DERIVATIVES INVOLVE MORE TRADEABLE ASSETS EXPLAINS RENNY MERRITT OF ALDRICH EASTMAN & WALTCH A BOSTON REALESTATE FIRM THAT RECENTLY GUIDED A CLIENT THROUGH ITS FIRST DEAL REAL ESTATE IS STILL BASICALLY A PRIVATE MARKET ASSET ALL THINGS CONSIDERED BANKS PENSION FUNDS AND INSURANCE COMPANIES THAT ARE STRAPPED WITH TOO MUCH REAL ESTATE WOULD PREFER TO DUMP SOME THE PROBLEM IS SHEDDING PROPERTIES NOT ONLY WOULD MEAN PAYING HEAVY TRANSACTION COSTS BUT IN SOME CASES COULD ALSO ENTAIL A BALANCE SHEET HIT UNLESS LOSSES ON THOSE PROPERTIES WERE ALREADY WRITTEN OFF A SALE WOULD MEAN TURNING PAPER LOSSES INTO REAL ONES WHAT'S MORE INSTITUTIONS THAT DUMP PROPERTIES TODAY RISK MISSING OUT IF THE MARKET REALLY DOES TAKE OFF THAT'S WHERE SWAPS ENTER THE PICTURE A SWAP CAN RELIEVE THOSE INSTITUTIONS OF THE HEARTACHES OF OWNING REAL ESTATE WITHOUT ACTUALLY FORCING THEM TO SELL IN REALESTATE SWAPS PROPERTY OWNERS AGREE TO PAY AN INVESTOR WHO WANTS TO GET INTO THE REALESTATE MARKET A RATE OF RETURN LINKED TO FLUCTUATIONS IN THE PRICE OF REAL ESTATE IN TURN THE INVESTOR AGREES TO PAY THE PROPERTY OWNER A MORE PREDICTABLE RETURN SUCH AS A FLOATING INTEREST RATE IT'S A BETTING MAN'S GAME SAYS MR MERRITT YOU'RE BETTING THAT WHAT YOU'RE GIVING UP IS GOING TO DO WORSE THAN WHAT YOU'RE GETTING THE NEW PRODUCTS ARE UNRELATED TO THE SWAPPING OF SINGLE PROPERTIES BY OWNERS WHO ARE RELUCTANT TO SELL AND INCUR CAPITALGAINS TAXES TO DATE MORGAN STANLEY & CO HAS ARRANGED ONE SWAP AND BANKERS TRUST NEW YORK CORP HAS COMPLETED TWO WITH OTHERS IN THE WORKS A LOT OF THIS IS DRIVEN BY I CAN'T TAKE THE RISK ANY MORE' EXPLAINS DENNIS YESKY OF KENNETH LEVENTHAL & CO A LOS ANGELES REALESTATE CONSULTING FIRM MANY INSTITUTIONS ARE WILLING TO GIVE UP THE UPSIDE IN EXCHANGE FOR A KNOWN YIELD ACCORDING TO PROPONENTS SWAPS HAVE SPECIAL ADVANTAGES FOR SMALLER PENSION FUNDS AND MONEY MANAGERS WHO ARE EITHER UNABLE TO RAISE THE MONEY TO BUY PROPERTIES OR DON'T HAVE THE EXPERTISE TO SELECT AND MANAGE THEM I MAY WANT THE RETURN PROFILE OF INVESTING IN REAL ESTATE BUT IF I OWN A BUILDING I HAVE TO TAKE CARE OF IT OR PAY SOMEONE TO TAKE CARE OF IT SAYS CHARLES SMITHSON MANAGING DIRECTOR AT CHASE MANHATTAN BANK THE PECULIARITIES OF THE REALESTATE MARKET CREATE PROBLEMS THOUGH BEFORE CLOSING ITS FIRST REALESTATE DEAL EARLIER THIS YEAR MORGAN STANLEY FACED THE STICKY PROBLEM OF FIGURING OUT WHAT ANNUAL RETURN THE LANDLORD WOULD PAY ON THE SWAP BECAUSE THE PROPERTY MARKET IS HIGHLY FRAGMENTED AND IDIOSYNCRATIC IT'S DIFFICULT TO FIND AN ACCEPTABLE BENCHMARK AGAINST WHICH RETURNS CAN BE PEGGED FORTUNATELY THE LANDLORD AN UNIDENTIFIED MIDSIZE CORPORATE PENSION FUND HAD A DIVERSIFIED PORTFOLIO OF PROPERTIES FROM WHICH TO CREATE A SWAP IT SELECTED A 20 MILLION BASKET OF PROPERTIES FROM ITS HOLDINGS THAT HAPPEN TO RESEMBLE THE MIX OF PROPERTIES TRACKED IN THE RUSSELLNCREIF PROPERTY INDEX THE ONLY WIDELY ACCEPTED INDEX OF COMMERCIAL REALESTATE VALUES EACH YEAR FOR FIVE YEARS THE PENSION FUND WILL PAY THE ANNUAL RETURN ON THE INDEX TO AN UNIDENTIFIED INSURANCE COMPANY IN EXCHANGE THE INSURANCE COMPANY WILL PAY THE PENSION FUND A RETURN PEGGED TO THE LONDON INTERBANK OFFERED RATE A SHORTTERM INTEREST RATE SIMILAR TO THE US TREASURY BILL RATE BIG DERIVATIVES DEALERS HOPE TO USE THIS FLEDGLING MARKET TO MATCH UP PROPERTYWEARY LANDLORDS WITH A GROWING NUMBER OF REALESTATE ENTHUSIASTS BUT SO FAR REALESTATE SWAPS HAVE BEEN A HARD SELL THE EXPECTATION AFTER THE FIRST ONE WAS DONE WAS THAT THE FLOODGATES WERE GOING TO OPEN SAYS MR MERRITT OF ALDRICH EASTMAN & WALTCH THAT HASN'T HAPPENED ONE REASON IS THAT THE SMALLER PENSION FUNDS AND INSURANCE COMPANIES CONSIDERED THE MOST LIKELY USERS HAVE LITTLE EXPERIENCE WITH NEWFANGLED INSTRUMENTS SUCH AS SWAPS THE ONES WHO CAN USE IT THE MOST ARE THE ONES WHO KNOW IT THE LEAST SAYS MR MONTECILLO BUT AS INVESTMENT BANKERS PLUG REALESTATE SWAPS TO POTENTIAL CUSTOMERS AND THEIR ADVISERS MANY ARE WARMING TO THE IDEA WE'RE LOOKING AT IT VERY CAREFULLY SAID NORI GERARDO MANAGING DIRECTOR OF PENSION CONSULTING ALLIANCE A PORTLAND ORE INVESTMENT CONSULTING FIRM IT MAY ADDRESS THE NEEDS OF SOME OF THE SMALLER FIRMS WHO WANT A MORE PASSIVE INVESTMENT IN REAL ESTATE I EXPECT TO SEE THE LEVEL OF ACTIVITY INCREASE DRAMATICALLY THIS IS OBVIOUSLY A HOT PRODUCT ONE THAT WE'RE LOOKING AT FROM A NUMBER OF DIFFERENT PERSPECTIVES SAYS JAMES O'KEEFE CHIEF EXECUTIVE OFFICER OF THE REALESTATE INVESTMENT ARM OF AETNA LIFE & CASUALTY CO WHICH MANAGES 36 BILLION IN REALESTATE INVESTMENTS FOR PENSION FUNDS NOT WANTING TO MISS OUT ON THE TREND THE CHICAGO BOARD OF TRADE RECENTLY SAID IT JOINED FORCES WITH CASE SHILLER WEISS INC A REALESTATE RESEARCH FIRM TO CREATE A DERIVATIVE BASED ON RESIDENTIAL REALESTATE VALUES SUCH A PRODUCT COULD ALSO BE USED BY HOME MORTGAGE LENDERS AND MORTGAGEBACKED SECURITIES INVESTORS TO HEDGE AGAINST UNEXPECTED CHANGES IN HOUSING VALUES WE'RE TALKING ABOUT THE EARLY FORMS OF ANOTHER MARKET SAID RICHARD SANDOR CHIEF EXECUTIVE OF CENTRE FINANCIAL PRODUCTS LTD A NEW YORK DERIVATIVES BOUTIQUE FIRM IT'S REALLY NOT DEVELOPED AS A MARKET BUT THERE'S A CLEAR UNDERLYING NEED 9312210101 931221 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY DECEMBER 8 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9312210100 931221 NIKE'S EARNINGS FELL 31 IN QUARTER AS ITS US SALES OF BASKETBALL SHOES SLID BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL NIKE INC SAID NET INCOME PLUNGED 31 IN ITS FISCAL SECOND QUARTER BECAUSE US SALES OF ITS CORE BASKETBALL SHOES FELL 25 AND A STRONG DOLLAR POUNDED ITS EUROPEAN BUSINESS FOR THE QUARTER ENDED NOV 30 PROFIT FELL TO 523 MILLION OR 69 CENTS A SHARE FROM 76 MILLION OR 98 CENTS A SHARE A YEAR EARLIER REVENUE SLID 8 TO 8058 MILLION FROM 8758 MILLION THE RESULTS IN LINE WITH ANALYSTS' EXPECTATIONS WERE TAKEN IN STRIDE BY THE STOCK MARKET IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING NIKE FELL 375 CENTS TO CLOSE AT 44625 NEVERTHELESS FOR THE WORLD'S LARGEST SHOE MAKER THE SECONDQUARTER RESULTS REFLECT A SHIFT IN CONSUMER PREFERENCE AWAY FROM THE COMPANY'S ONCEPOPULAR SUPERSTARENDORSED ATHLETIC SHOES TO LESS FLASHY OUTDOOR FOOTWEAR THEY'RE A VICTIM OF THE ENVIRONMENT AND THE CURRENT RETAIL TRENDS SAID JENNIFER GROVES AN ANALYST AT BLACK & CO WHO LOWERED HER EARNINGS ESTIMATE FOR THE FISCAL YEAR TO BETWEEN 375 AND 380 FROM 4 A SHARE WE'RE LOOKING AT CRUMMY NUMBERS IN THE THIRD AND FOURTH QUARTERS NIKE SAID THAT ORDERS FOR DELIVERY THROUGH APRIL DECLINED 14 FROM THE YEAREARLIER PERIOD BUT THE COMPANY SAID THAT IF EXCHANGE RATES HADN'T CHANGED SECONDQUARTER REVENUE WOULD HAVE DECREASED BY 1 AND NET INCOME WOULD HAVE BEEN 77 CENTS A SHARE EXCLUDING THE EFFECTS OF EXCHANGE RATES INTERNATIONAL REVENUE WOULD HAVE GROWN 6 IN THE PERIOD ANALYSTS DON'T EXPECT THE BEAVERTON ORE COMPANY TO REVERSE ITS SLUMPING SALES FOR SEVERAL QUARTERS IN THE FIRST QUARTER NIKE SAID IT WOULD SLASH COSTS AND LAY OFF UP TO 4 OF ITS 9700 EMPLOYEES IN THE US SALES OF BASKETBALL SHOES A 500 MILLION CATEGORY FOR NIKE AND THE BACKBONE OF THE COMPANY'S DOMESTIC MARKET SLUMPED BECAUSE OF WHAT NIKE CALLED THE ORDINARY EBB AND FLOW OF THE MARKET THE COMPANY SAID THE EBB WAS EMPHASIZED BY A 29 GAIN IN THE CATEGORY A YEAR EARLIER IT'S PRETTY TOUGH TO SUSTAIN THOSE KIND OF NUMBERS MS GROVES SAID NOTING THAT OUTDOOR SHOES SUCH AS HIKING BOOTS ARE ON AVERAGE 15 TO 20 CHEAPER THAN BASKETBALL SNEAKERS THE MASSES DON'T WANT TO SPEND 125 ON A PAIR OF SHOES NIKE CHAIRMAN PHILIP H KNIGHT SAID THE COMPANY REMAINED CONFIDENT IN THE INTERNATIONAL POTENTIAL OF ATHLETIC SHOES AND EXPECTED A STEADY INCREASE IN SALES OF ITS OUTDOOR SHOES HE SAID SALES OF OUTDOOR SHOES GREW 39 IN THE QUARTER AND COULD REACH 200 MILLION IN SALES THIS YEAR HE ALSO DENIED THAT THE COMPANY HAS REACTED TOO SLOWLY TO CHANGING CUSTOMER PREFERENCES THESE RESULTS WERE IN LINE WITH OUR EXPECTATIONS HE SAID IN A STATEMENT HOWEVER THE NUMBERS DO NOT ADEQUATELY REFLECT THE REASONS WE ARE OPTIMISTIC ABOUT NIKE'S FUTURE MR KNIGHT SAID EVERY SHOE CATEGORY EXCEPT BASKETBALL RECORDED INCREASES IN THE QUARTER AND SAID THE COMPANY WILL POST ITS THIRD BEST YEAR EVER IT WILL STILL BE A BETTER YEAR THAN ANY OTHER COMPANY IN THIS INDUSTRY HAS EVER ACHIEVED HE SAID 9312210099 931221 SMALL STOCK FOCUS SMALL LOSSES LACKLUSTER ACTIVITY REFLECT RESHUFFLING BY INSTITUTIONAL INVESTORS BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS POSTED SMALL LOSSES AFTER A LACKLUSTER SESSION TRADERS SAID INSTITUTIONAL INVESTORS ADDED TO POSITIONS ALREADY IN THEIR PORTFOLIOS AND SOLD OFF OTHERS THAT RESHUFFLING MEANT SMALL STOCKS NEVER WERE ABLE TO GATHER MUCH STEAM AND SPENT MOST OF THE DAY HOVERING BETWEEN A SLIGHT LOSS AND A MODEST GAIN THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS ENDED THE SESSION DOWN 033 OR 013 AT 25192 THE NASDAQ COMPOSITE INDEX WAS UP 092 POINT OR 012 TO 76015 MARKET OBSERVERS SAID ACTIVITY WILL WIND DOWN AS TRADERS AND INVESTORS LEAVE EARLY FOR THE CHRISTMAS HOLIDAYS STOCK MARKETS ARE CLOSED FRIDAY THE DAY'S BIG LOSER WAS EAGLE HARDWARE & GARDEN WHICH PLUNGED 6 5/8 TO 19 1/8 ON VOLUME OF 53 MILLION SHARES THE HOMEIMPROVEMENT CHAIN BASED IN TUKWILA WASH SAID COMPARABLESTORE SALES WOULD LIKELY FALL TO WELL BELOW HISTORICAL LEVELS MERRYGOROUND ENTERPRISES NYSE WAS UP 1/8 TO 2 1/4 AFTER IT SAID IT MIGHT FILE FOR CHAPTER 11 BANKRUPTCY PROTECTION THE JOPPA MD RETAILER SAID ITS LOSSES FOR THE THIRD QUARTER AND THE NINE MONTHS ENDED OCT 30 HAVE PLACED IT IN VIOLATION OF ITS CREDIT PACTS AND THAT SOME VENDORS WON'T SHIP ORDERS FOR SPRING MERCHANDISE THE COMPANY ALSO SAID IT WAS DELAYING SOME PAYMENTS TO CONSERVE CASH ANOTHER RETAILER REPORTED BETTER NEWS FRETTER CLIMBED 1 3/16 TO 5 7/16 A 28 GAIN THE COMPANY SAID LATE FRIDAY THAT THIRDQUARTER SAMESTORE SALES ROSE 48 WHILE NINEMONTH SAMESTORE SALES WERE UP 15 THE COMPANY ALSO SAID IT POSTED A THIRDQUARTER LOSS OF 61 CENTS A SHARE ON CHARGES COMPARED WITH NET INCOME OF FIVE CENTS A SHARE A YEAR EARLIER EXCLUDING CHARGES NET WOULD HAVE BEEN SIX CENTS A SHARE UNION BANK FELL 1 1/8 TO 24 1/2 AFTER MERRILL LYNCH LOWERED ITS NEARTERM INVESTMENT RATING ON THE LARGE CALIFORNIA BANK TO NEUTRAL FROM ABOVE AVERAGE THE BROKERAGE HOUSE KEPT A LONGTERM ABOVE AVERAGE RATING JOHNSTOWN SAVINGS BANK SLUMPED 3 1/4 TO 18 AFTER IT SAID USBANCORP SEEKS TO LOWER THE PAYOUT TO JOHNSTOWN SHAREHOLDERS AS PART OF A MERGER AGREEMENT JOHNSTOWN SHAREHOLDERS WOULD RECEIVE 2150 A SHARE RATHER THAN 2450 A SHARE USBANCORP'S PROPOSAL PERMITS JOHNSTOWN TO SOLICIT OFFERS FROM THIRD PARTIES PROVIDED THAT THE MERGER OFFERS ARE FOR MORE THAN 2150 A SHARE COMPANIES WITH CHANGES OF TOP LEADERSHIP DIDN'T SEE THEIR NEWS GO UNNOTICED CASTLE ENERGY GAINED 1 1/2 TO 13 1/4 CHIEF EXECUTIVE JOSEPH CASTLE WAS NAMED CHAIRMAN SUCCEEDING SIEGFRIED HODAPP THE RADNOR PA ENERGY COMPANY ALSO SAID IT HAS SUSPENDED JOINTVENTURE DISCUSSIONS WITH THORNTON OIL CO ELSEWHERE AMONG SMALLCAP STOCKS PLATINUM TECHNOLOGY CLIMBED 5/8 TO 10 OPPENHEIMER & CO BEGAN INVESTMENT COVERAGE OF THE OAKBROOK TERRACE ILL SOFTWAREPRODUCT MAKER WITH A MARKET PERFORMER ENGINEERED SUPPORT SYSTEMS GAINED 5/8 TO 4 AFTER THE MAKER OF GROUND SUPPORT EQUIPMENT FOR THE MILITARY SAID IT EARNED 27 CENTS A SHARE FOR THE FISCAL FOURTH QUARTER ENDED OCT 31 COMPARED WITH A LOSS OF FOUR CENTS A YEAR EARLIER 9312210098 931221 INTERNATIONAL BRIEF IBERIA SA SPAIN EXPECTED TO SEEK HELP FROM ARGENTINA FOR CARRIER THE SPANISH GOVERNMENT IS EXPECTED TO MAKE A PLEA TO ARGENTINA FOR HELP IN AVERTING THE COLLAPSE OF AEROLINEAS ARGENTINAS THE MONEYLOSING UNIT OF IBERIA SA SPAIN'S FLAGSHIP CARRIER SPAIN WOULD LIKE THE ARGENTINE GOVERNMENT TO CONTRIBUTE 43 OF A PLANNED CAPITAL INCREASE TOTALING AROUND 500 MILLION FOR AEROLINEAS WHICH IS 30 OWNED BY IBERIA AN IBERIA SPOKESMAN SAID THE ARGENTINE GOVERNMENT OWNS 43 OF AEROLINEAS UNTIL NOW BUENOS AIRES HAS DECLINED TO PARTICIPATE IN THE CAPITAL INCREASE ARGUING THAT AEROLINEAS IS A PRIVATIZED COMPANY AND THAT THE GOVERNMENT HAS NO FURTHER RESPONSIBILITY FOR THE AIRLINE BUT WITHOUT FRESH FUNDS IBERIA HAS WARNED AEROLINEAS MAY HAVE TO BE PLACED IN RECEIVERSHIP IBERIA IS EXPECTED TO REPORT A LOSS OF ABOUT 55 BILLION PESETAS 392 MILLION THIS YEAR COMPARED WITH 35 BILLION PESETAS IN 1992 AEROLINEAS CLOSED ITS 1992/93 ACCOUNTS LAST WEEK WITH A 229 MILLION LOSS 9312210097 931221 LETTERS TO THE EDITOR ABIDING BY ONE'S FAITH CAN'T BE CALLED BIGOTRY IF ARTHUR J KROPP PRESIDENT OF THE PEOPLE FOR THE AMERICAN WAY'S ACTION FUND REALLY WISHES TO PROMOTE TOLERANCE AND OPPOSE THE REDUCTION OF RELIGION TO POLITICAL GIMMICKRY HE SHOULD BEGIN BY PRACTICING WHAT HE PREACHES INSTEAD OF STAKING OUT THE OUTLANDISHLY UNDEMOCRATIC AND ILLOGICAL POSITION THAT ACTING IN A WAY CONSISTENT WITH ONE'S RELIGIOUS FAITH PURE AND SIMPLY AMOUNTS TO RELIGIOUS BIGOTRY LETTER TO THE EDITOR UNFAIR CHARGE OF RELIGIOUS BIGOTRY' DEC 1 IRONICALLY AND WHOLLY DESPITE THE FACT THAT MR KROPP'S ESSENTIAL ARGUMENT THAT THERE EXISTS NO RELIGIOUS BIGOTRY IN POLITICAL CAMPAIGNS IS CHALLENGED EVEN BY THE AUTHORITY UPON WHICH HE CLAIMS TO RELY SEE 2 CORINTHIANS 49 WHICH STATES THAT PEOPLE OF FAITH ARE PERSECUTED BUT NOT ABANDONED STRUCK DOWN BUT NOT DESTROYED HE ARRIVES AT AN INTERESTING POINT THE NATION'S ILLS EG DRUG ABUSE AND VIOLENT CRIME AT THEIR ROOT MAY BE EXPLAINED BY WHAT HE CALLS SPIRITUAL POVERTY TO THE EXTENT HE PURSUES THIS ACCIDENTAL FOCUS AS A LEADER OF ONE OF OUR BESTKNOWN PUBLIC INTEREST ORGANIZATIONS HE MAY INDEED CONTRIBUTE TO THE AMERICAN WAY ESTABLISHED AND ENVISIONED BY OUR FOUNDERS 9312210096 931201 LETTERS TO THE EDITOR UNFAIR CHARGE OF RELIGIOUS BIGOTRY' ALONG WITH RECORD QUANTITIES OF PARTISAN SPIN CONTROL THIS YEAR'S ELECTION PRODUCED A VERY TROUBLING HARBINGER IN OUR POLITICAL DEBATE BY LABELING POLITICAL CRITICISM OF HIS RECORD AS RELIGIOUS BIGOTRY VIRGINIA CANDIDATE MICHAEL FARRIS TESTED OUT A TOUGH NEW HYBRID OF POLITICAL TEFLON THAT COULD LONG OUTLIVE HIS ILLFATED CAMPAIGN FOR LIEUTENANT GOVERNOR EDITORIALS REPUBLICAN INTOLERANCE OCT 22 AND WILLIE HORTON LIBERALS OCT 26 IF THE RELIGIOUS BIGOTRY CHARGE TAKES HOLD ACROSS THE NATION THE WAY IT DID ON YOUR EDITORIAL PAGE THE RESULT WILL BE TO DIMINISH THE IMPORTANT ROLES OF BOTH RELIGION AND POLITICS IT IS AN UGLY FACT OF AMERICAN LIFE THAT SOME CITIZENS JUDGE CANDIDATES BASED ON WHERE THEY WORSHIP RATHER THAN WHERE THEY STAND JOHN F KENNEDY JIMMY CARTER AND PAT ROBERTSON ARE AMONG PRESIDENTIAL CONTENDERS WHO CONFRONTED THIS REALITY BUT THE VAST MAJORITY OF AMERICANS VOTE THEIR POLITICAL INTERESTS NOT THEIR RELIGIOUS BELIEFS THE VIRGINIA RACE TOO WAS ABOUT POLITICS NOT RELIGION VOTERS WERE JUSTLY SUSPICIOUS OF MR FARRIS'S POLITICAL PORTFOLIO WHICH INCLUDED A HIGHPROFILE SCHOOL CENSORSHIP CASE REGRESSIVE REMARKS ABOUT WOMEN AND RADICAL ATTACKS ON PUBLIC EDUCATION CRITICS OF MICHAEL FARRIS INCLUDING MY ORGANIZATION WERE NOT TAKING ISSUE WITH THE RELIGIOUS FAITH THAT UNDERLIES HIS VIEWS BUT WITH THE VIEWS THEMSELVES MR FARRIS LOST DESPITE GEORGE ALLEN'S BROAD COATTAILS BECAUSE HIS STANDS ON THE ISSUES WERE UNACCEPTABLE TO MOST VOTERS PERIOD BUT IN THE CLOSING WEEKS OF THE CAMPAIGN MR FARRIS'S CLAIM THAT CRITICISMS OF HIS POLICY VIEWS WERE REALLY RELIGIOUS BIGOTRY BEGAN TO PICK UP SUPPORT AND NOT JUST FROM PREDICTABLE SOURCES LIKE PRESIDENTIAL HOPEFUL WILLIAM BENNETT MODERATE PUNDIT MICHAEL BARONE CLAIMED THAT MR FARRIS HAD BEEN TREATED UNFAIRLY AND THAT THE VIRGINIA CAMPAIGN HAD BEEN MARRED BY DISTORTION AND RELIGIOUS RIDICULE ALL THE ATTENTION GAVE A PATINA OF RESPECTABILITY TO THE LONGTIME PERSECUTION CLAIMS OF RELIGIOUS RIGHT LEADERS SUCH AS PAT ROBERTSON'S OVERTHETOP ANALOGIES BETWEEN THE STIGMATIZED STATUS OF CHRISTIAN AMERICANS TODAY AND THE SUFFERING OF JEWS DURING THE HOLOCAUST OR BLACKS IN THE JIM CROW SOUTH THAT'S NONSENSE AND IT'S DEEPLY OFFENSIVE NONSENSE THE FLIP SIDE OF THE RELIGIOUS RIGHT'S VICTIMIZATION PARADIGM IS THE BLANKET ASSUMPTION THAT THEIR OPPONENTS HAVE NO RELIGIOUS FAITH OF THEIR OWN OR ARE OUTRIGHT HOSTILE TO RELIGION SINCE WHEN DOES QUESTIONING PAT ROBERTSON'S STAND ON SCHOOL VOUCHERS OR MICHAEL FARRIS ON WOMEN AND WORK IMPLY SPIRITUAL POVERTY FAR FROM BEING A RIGHTWING CAPTIVE RELIGIOUS FAITH HAS BEEN A DRIVING FORCE BEHIND THE MOST IMPORTANT PROGRESSIVE MOVEMENTS IN OUR NATION'S HISTORY FROM ABOLITION TO THE MODERNDAY CIVIL RIGHTS MOVEMENT TO QUOTE FROM SECOND CORINTHIANS MANY OF US ACROSS THE POLITICAL SPECTRUM WALK BY FAITH NOT BY SIGHT FAITH GIVES US OUR VISION TOLERANCE THE MEANS FOR RECONCILING IT WITH THE VISION OF OTHERS IT WOULD ILLSERVE BOTH IDEAS FOR RELIGION TO BE REDUCED TO POLITICAL GIMMICKRY SEE RELATED LETTER LETTERS TO THE EDITOR ABIDING BY ONE'S FAITH CAN'T BE CALLED BIGOTRY WSJ DEC 21 1993 9312010114 YY93 MM12 9312210095 931221 HEARD ON THE STREET EAGLE HARDWARE GETS HAMMERED ON WORRIES ABOUT EFFECTS OF NEW STORES DEBTISSUE PLANS BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK I'M NOT PANICKED INSISTED RICHARD TAKATA PRESIDENT OF EAGLE HARDWARE & GARDEN MR TAKATA MUST BE A STOUTHEARTED SOUL HE WAS SPEAKING YESTERDAY AFTERNOON AS EAGLE HARDWARE SHARES WERE PLUNGING 26 IN ONE OF THE BIGGEST ONEDAY DISINTEGRATIONS OF A STOCK IN 1993 THERE WERE A COUPLE OF PUBLICLY ANNOUNCED REASONS BEHIND THE PLUNGE BUT THE STREET'S WORRIES GO BEYOND THE NEWS RELEASES TRADERS SAY SALES ARE ALREADY SLOWING AT THE HOMEIMPROVEMENT CHAIN WHICH HAS 13 OUTLETS IN WASHINGTON STATE ALASKA HAWAII AND ALBERTA CANADA EAGLE ONE OF THE HOT INITIAL PUBLIC OFFERINGS OF 1992 YESTERDAY WOUND UP 6 5/8 LOWER AT 19 1/8 ON THE NASDAQ STOCK MARKET ON HEAVY VOLUME OF 53 MILLION SHARES TRADERS SAY THAT THE TUKWILA WASH COMPANY AFTER POSTING STRONG SALES THROUGH NOVEMBER HAS SEEN A SLOWDOWN IN THE FIRST 2 1/2 WEEKS OF THIS MONTH THE NUMBERS ARE NOT GOOD SAYS ONE LARGE TRADER OF THE STOCK MR TAKATA WON'T COMMENT ON THE DECEMBER SALES SAYING THE COMPANY RELEASES ONLY QUARTERLY FIGURES NOT MONTHLY BUT THE LITTLE THAT THE COMPANY DID DISCLOSE YESTERDAY WAS ENOUGH TO SEND THE STOCK PLUNGING EAGLE IN A NEWS RELEASE ANNOUNCING THE OPENING OF A NEW STORE IN BELLEVUE WASH NOTED THAT IT NOW HAS SIX STORES IN THE SEATTLE MARKET THERE WILL BE INCREASED CANNIBALIZATION OF EXISTING STORES BY NEW STORES THE COMPANY SAID WHICH IN TURN WILL PROBABLY REDUCE COMPANYWIDE COMPARABLESTORE SALES TO WELL BELOW HISTORICAL LEVELS ON TOP OF THAT EAGLE ALSO ANNOUNCED YESTERDAY THAT IT HAS FILED TO SELL 100 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES DUE IN THE YEAR 2001 TO FINANCE EXPANSION THE TWO ANNOUNCEMENTS ALONG WITH THE WORD OF SLOW DECEMBER SALES COMBINED TO SPOOK MANY INVESTORS WHO WERE ALREADY HAVING DOUBTS ABOUT EAGLE HARDWARE STOCK AND ITS RICH PRICE OF 54 TIMES THE PAST YEAR'S EARNINGS A STILLHEADY 40 TIMES EARNINGS AFTER YESTERDAY'S PLUNGE THIS IS WHAT HAPPENS TO MANY IPOS YOU'RE GOING TO SEE MORE OF THESE DISASTERS DURING THE NEXT YEAR SAYS INVESTOR SCOTT BLACK OF DELPHI MANAGEMENT THESE THINGS ARE AT UNSUSTAINABLE LEVELS BULLS ON THE OTHER HAND LOOK ON THE EAGLE CHAIN AS POSSIBLY THE NEXT SUCCESS STORY LIKE HOME DEPOT THIS IS WHY EAGLE HAS SOARED FROM ITS INITIAL PRICE OF 9 ADJUSTED FOR A 3FOR2 SPLIT THE STOCK'S UNDERWRITER MONTGOMERY SECURITIES IN SAN FRANCISCO HAS ENDORSED EAGLE STRONGLY IN THE PAST BUT MONTGOMERY ANALYST BO CHEADLE WASN'T AVAILABLE YESTERDAY TO COMMENT ON WHETHER HE'S RECONSIDERING HIS BUY RATING THAT'S BECAUSE MONTGOMERY ALONG WITH ALEX BROWN IS UNDERWRITING THE CONVERTIBLEDEBENTURE OFFERING DUE EARLY NEXT YEAR AND IS RESTRICTED FROM MAKING PUBLIC COMMENTS ANALYST MICHAEL MOE OF DAIN BOSWORTH MINNEAPOLIS SAID HE MAINTAINS A BUY RATING ON EAGLE I'M NOT SAYING IT'S A CHEAP STOCK IT'S A GROWTH STOCK HE SAYS ONE BIG INVESTOR IN EAGLE DIDN'T USE YESTERDAY'S PRICE PLUNGE TO PICK UP ADDITIONAL SHARES BUT SAYS HE'S STILL BULLISH ON THE STOCK GEORGE NOVELLO MANAGER OF SMITH BARNEY SHEARSON SPECIAL EQUITY PORTFOLIO WHICH HAS MORE THAN 200000 EAGLE SHARES SAYS HE'S MORE IMPRESSED WITH EAGLE'S EXPANSION THAN WITH SAMESTORE SALES IF HE WERE ABLE TO HE'D BUY MORE EAGLE SHARES MR NOVELLO SAYS BUT EAGLE IS ALREADY ONE OF THE TOP FOUR HOLDINGS IN THE 180 MILLION FUND AND HE'D REALLY HAVE DIFFICULTY ADDING TO THE POSITION AT THIS POINT THE FUNDAMENTAL STRUCTURE OF THE STORY REMAINS INTACT THE FUND MANAGER ADDS WHY SHOULD I PANIC WHAT WILL BE THE NEXT HOT SEGMENT IN THE STOCK MARKET TECHNOLOGY AND CAPITALGOODS STOCKS ACCORDING TO ONE ODDBALL INDICATOR NICHOLAS CRISPI IS PRESIDENT OF CRISPI WAGNER A WALL STREET EXECUTIVERECRUITING FIRM HE SAYS DEMAND FOR ANALYSTS AND INVESTMENT BANKERS IN A PARTICULAR FIELD USUALLY HEATS UP ABOUT SIX MONTHS BEFORE THE STOCKS DO TWO YEARS AGO HE HAD LOTS OF CALLS FOR BANKINGINDUSTRY EXPERTS A YEAR AGO ENTERTAINMENTINDUSTRY PEOPLE WERE IN DEMAND IT ALSO WORKED WITH NATURALGAS STOCKS HE SAYS MR CRISPI HAS NO FORMAL PROOF AND ADMITS THAT HIS INDICATOR GAVE A FALSE SIGNAL ON OIL STOCKS A COUPLE OF YEARS AGO BUT HE CLAIMS THE METHOD IS ABOUT 80 ACCURATE 9312210094 931221 BUSINESS BRIEF BOMBARDIER INC CORPORATE GLOBAL EXPRESS JET HAS RECEIVED 30 FIRM ORDERS BOMBARDIER INC MONTREAL SAID IT HAS RECEIVED 30 FIRM ORDERS FOR ITS PLANNED GLOBAL EXPRESS BUSINESS JET REPRESENTING A BACKLOG OF CLOSE TO 1 BILLION LAURENT BEAUDOIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COST OF DEVELOPING THE LONGRANGE JET WILL BE ABOUT 800 MILLION CANADIAN DOLLARS US596 MILLION EXCLUDING THE ENGINE WHICH IS BEING DEVELOPED BY BMW ROLLSROYCE GMBH BOMBARDIER WILL SHOULDER ABOUT C400 MILLION OF THE DEVELOPMENT COST THE REMAINING C400 MILLION IS TO BE PROVIDED BY RISKSHARING PARTNERS INCLUDING MITSUBISHI HEAVY INDUSTRIES LTD WHICH WILL SUPPLY THE WING 9312210093 931221 LETTERS TO THE EDITOR SPEAKING CHARITABLY ONE SIZE DOESN'T FIT ALL IN RESPONSE TO YOUR NOV 12 STORY MORE DONORS TO THE UNITED WAY ATTACH ASSORTMENT OF STRINGS TO THEIR GIFTS DONORS' ATTACHING STRINGS TO THEIR UNITED WAY DONATIONS IS AN INDICATION THAT THE PENDULUM THAT BROUGHT CHARITIES UNDER ONE UMBRELLA FOR WORKPLACE DONATIONS IS ALREADY SWINGING THE OTHER WAY AND BUILDING MOMENTUM THIS IS NOT SURPRISING ONE SIZE NO LONGER FITS ALL ENLIGHTENED EMPLOYERS ARE IN INCREASING NUMBERS OFFERING EMPLOYEES A CHOICE OF RECIPIENT FUNDS AND A VOICE IN THEIR SELECTION AS WELL THIS IS GOOD FOR CHARITIES AND DONORS ALIKE WHEN ALTERNATIVE FUNDS SUCH AS WOMENS WAY A FUNDING FEDERATION SUPPORTING ORGANIZATIONS RUN BY WOMEN FOR WOMEN ENTER WORKPLACE CAMPAIGNS ALONGSIDE UNITED WAY EMPLOYEES GIVE MORE IN FACT IN 75 OF CAMPAIGNS STUDIED BY THE NATIONAL COMMITTEE FOR RESPONSIVE PHILANTHROPY UNITED WAY COLLECTS MORE WHEN WORKPLACE CAMPAIGNS INCLUDE ALTERNATIVE FUNDS WE TOUCH A RESPONSIVE CHORD IN MANY EMPLOYEES BECAUSE WE AND THE OTHER ALTERNATIVE FUNDS SUPPORT SOCIAL CHANGE GRASSROOTS INITIATIVES AND EMPOWERMENT PROGRAMS FOR DISENFRANCHISED POPULATIONS WE MOVE QUICKLY AND RESPOND TO NEEDS AS THEY EMERGE BECAUSE WE ARE SPECIALISTS IN OUR CALLINGS 9312210091 931221 POLITICS & POLICY INMAN MAY HAVE PROBLEM RESEMBLING ZOE BAIRD'S WASHINGTON THE WHITE HOUSE DISCLOSED THAT BOBBY INMAN MAY HAVE A ZOE BAIRD PROBLEM BUT THE ISSUE ISN'T EXPECTED TO BLOCK HIS NOMINATION TO BE DEFENSE SECRETARY IN A TWOPARAGRAPH STATEMENT THE WHITE HOUSE SAID RETIRED ADM INMAN YESTERDAY SENT A 6000 CHECK TO THE INTERNAL REVENUE SERVICE FOR TAXES OWED ON WORK PERFORMED BY A PARTTIME HOUSEKEEPER FROM 1986 TO NOW ADM INMAN DISCLOSED THE PROBLEM AT THE OUTSET OF HIS DISCUSSIONS WITH THE WHITE HOUSE ACCORDING TO THE STATEMENT WHITE HOUSE CHIEF OF STAFF THOMAS MACK MCLARTY HAS SAID THAT HE BEGAN THE SEARCH FOR A SUCCESSOR TO MR ASPIN IN EARLY NOVEMBER THE SELECTION OF MR INMAN WAS ANNOUNCED BY PRESIDENT CLINTON ON THURSDAY EARLY REACTION ON CAPITOL HILL INDICATED THAT THE SOCIAL SECURITY TAX LAPSE WOULDN'T IMPEDE THE NOMINATION UNLESS THE HOUSEKEEPER WERE ALSO AN ILLEGAL IMMIGRANT MR INMAN COULDN'T BE REACHED DIRECTLY BUT A WHITE HOUSE SPOKESMAN RESPONDING TO A MESSAGE LEFT AT MR INMAN'S HOME IN TEXAS SAID LAST NIGHT THAT THE HOUSEKEEPER IS A US CITIZEN OTHER WHITE HOUSE AIDES INDICATED THEY DON'T CONSIDER THE SITUATION TO BE A DISQUALIFYING PROBLEM THEY SAID MANY OTHER APPOINTEES WITH SIMILAR SITUATIONS HAD BEEN CONFIRMED THIS YEAR 9312210090 931221 POLITICS & POLICY HEALTHCARE REFORM MAY SEEM LIKE A BITTER PILL TO LOCALITIES SICK OF UNFUNDED FEDERAL MANDATES BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HERE'S SOMETHING THAT USED TO GET A PARTICULAR ARKANSAS GOVERNOR FIGHTING MAD CONGRESS AND THE ADMINISTRATION TELLING STATES AND LOCALITIES TO CARRY FORWARD IMPORTANT NATIONAL INITIATIVES AND THEN NEGLECTING TO PROVIDE FUNDS TO GET THE JOBS DONE IN FACT CANDIDATE BILL CLINTON RAILED FROM THE STUMP LAST YEAR THAT SOCALLED UNFUNDED FEDERAL MANDATES WERE STICKING IT TO ALL THE STATES IN THE COUNTRY AND ESPECIALLY THE POOR STATES FAST FORWARD FEDERAL DEMANDS ON STATES AND LOCALITIES HAVE CONTINUED TO GROW IN THE FIRST YEAR OF THE CLINTON ADMINISTRATION STRAINING INTERGOVERNMENTAL RELATIONS JUST AS THE PRESIDENT BEGINS SELLING STATES THE LARGEST FEDERAL MANDATE IN A GENERATION HEALTHCARE REFORM THE CONCERN AMONG STATES IS THAT HEALTH CARE WILL TURN OUT TO BE LIKE SO MANY OTHER FEDERAL PROGRAMS WHERE COSTS RISE AND THE STATES ARE LEFT TO PAY BILLS THAT THEY CAN'T AFFORD SAYS HAL HOVEY A FORMER STATE BUDGET OFFICER IN OHIO AND EDITOR OF STATE BUDGET AND TAX NEWS A NEWSLETTER ON FISCAL POLICIES BY AND LARGE NO LOCAL OFFICIAL IS IN A POSITION TO BE TAKING ON ADDED OBLIGATIONS AND THEY'RE FINALLY TELLING THE FEDS TO GET LOST THE SOURING OF RELATIONS BETWEEN WASHINGTON AND LOCAL OFFICIALS HAS BEEN GROWING SINCE THE EARLY 1980S AS MORE OBLIGATIONS WERE HEAPED ON STATE AND LOCAL GOVERNMENTS WASHINGTON WILL DOLE OUT NEARLY 200 BILLION THIS YEAR TO STATES AND LOCALITIES HOWEVER AN EVERINCREASING SHARE ABOUT 40 WILL BE TO FUND RISING MEDICAID COSTS WHERE STATES KICK IN JUST UNDER HALF THE TOTAL BILL AND FEDERAL FUNDS PAY THE REST MEANWHILE THE FEDERAL FUNDS GOING TO CITIES AND COUNTIES HAS DECLINED TO 47 OF LOCAL TAX REVENUES IN 1991 FROM 15 IN 1978 FEDERAL OFFICIALS RESPOND THAT STATES MUST BE TOLD HOW TO SPEND THEIR MONEY IN CERTAIN AREAS SO UNIFORM STANDARDS TO PROTECT THE ENVIRONMENT OR RIGHTS FOR THE POOR OR DISABLED ARE ADEQUATELY FUNDED OTHERWISE A FREEFORALL AMONG 50 STATES WOULD RESULT IN MANY STATES EITHER FALLING SHORT OF OR SIMPLY IGNORING BROAD NATIONAL STANDARDS BUT SWALLOWING THE MANDATE WITHOUT ADEQUATE FEDERAL FUNDING TO CARRY IT THROUGH IS A BITTER PILL FOR LOCAL OFFICIALS A PIECE OF LEGISLATION PASSES IN CONGRESS AMID GREAT FANFARE LIKE THE AMERICANS WITH DISABILITIES ACT OR THE STRENGTHENING OF THE CLEAN WATER ACT AND LOCALITIES SPEND YEARS THANKLESSLY SCRAMBLING TO FIND MONEY TO BUILD RAMPS OR UPGRADE WASTEWATER TREATMENT FACILITIES A STUDY RELEASED IN OCTOBER BY PRICE WATERHOUSE ESTIMATES THAT UNFUNDED FEDERAL MANDATES WILL COST LOCALITIES 90 BILLION OVER THE NEXT FIVE YEARS OUR RESIDENTS HAVE THE PRIVILEGE OF PAYING 3 BILLION TO CLEAN UP BOSTON HARBOR AN IMPORTANT NATIONAL PRIORITY WE GET TO HANDLE WITHOUT ANY REAL NATIONAL SUPPORT SAYS DOUGLAS MACDONALD EXECUTIVE DIRECTOR OF MASSACHUSETTS WATER RESOURCES AUTHORITY WHICH IS BUILDING A HUGE WASTE TREATMENT PLANT FUNDED BY A 600 RATE INCREASE SINCE 1986 FOR BOSTONAREA RESIDENTS WASHINGTON ENJOYS THE SIMPLICITY AND REMOTENESS OF SETTING A NATIONAL STANDARD PASSES IT TO US AND THEN IT'S EVERY MAN FOR HIMSELF SINK OR SWIM PLENTY ARE SLIPPING BELOW THE WATER LINE STATES AND LOCALITIES IN AGGREGATE ARE NOW PERILOUSLY CLOSE TO OPERATING IN DEFICIT SOMETHING THAT HASN'T HAPPENED SINCE THE FOURTH QUARTER OF 1970 ACCORDING TO THE COMMERCE DEPARTMENT FOR THE THIRD QUARTER THE DEPARTMENT'S FIGURES SHOW STATE AND LOCAL GOVERNMENTS RUNNING AN ANNUAL SURPLUS OF ONLY 11 BILLION OUT OF 896 BILLION IN ESTIMATED YEARLY REVENUES THAT CUSHION HAS BEEN SHRINKING SWIFTLY AND STEADILY SINCE 50 BILLION ANNUAL SURPLUSES WERE POSTED IN THE MIDDLE AND LATE 1980S GOVERNORS WERE HOPEFUL THAT HEALTHCARE REFORM WOULD SLAY THE MEDICAID DRAGON IN NEARLY EVERY STATE BUDGET BUT SUCH OPTIMISM HAS FADED THE PRESIDENT'S HEALTHCARE PLAN DELIVERED TO CONGRESS LATE LAST MONTH WOULD SLOW THE FAST RISE IN MEDICAID BUT COSTS TO THE STATES WILL REMAIN HUGE THEY ARE EXPECTED TO CONTRIBUTE UNDER THE CLINTON PLAN WHAT THEY NOW PAY TO FUND MEDICAID ALONG WITH ASSUMING SOME HARDTOMEASURE COSTS FOR ADMINISTERING TO A COMPLEX ARRAY OF HEALTH PURCHASING ALLIANCES WHAT THE HEALTHCARE DEBATE HAS DONE HOWEVER IS FULLY ENGAGE GOVERNORS OF BOTH PARTIES IN THE UNFUNDEDMANDATES BATTLE LONG LED BY MAYORS AND LOCAL OFFICIALS IF WASHINGTON IS OUT OF MONEY THEY BETTER GET OUT OF THE IDEAS BUSINESS SAYS JIM MARTIN A POLICY DIRECTOR FOR THE NATIONAL GOVERNORS' ASSOCIATION IF THE GUYS IN WASHINGTON PASS IT THEY'LL HAVE TO PAY FOR IT WE'RE TIRED OF PAYING THEIR BILLS SO ELECTED OFFICIALS FROM AROUND THE COUNTRY HAVE BEEN BUSY TRYING TO DRESS UP A DOWDY BELTWAY TERM INTO A POLITICALLY ATTRACTIVE CATCH PHRASE TO WIT NUM DAY FOR NATIONAL UNFUNDED MANDATES WAS OBSERVED ON OCT 27 BY A HOST OF ORGANIZATIONS REPRESENTING STATE AND LOCAL GOVERNMENTS HUNDREDS OF STATE AND LOCAL OFFICIALS PARTICIPATED MANY OF THEM HOLDING NEWS CONFERENCES TO SHAKE THEIR FISTS QUIETER BUT MORE EFFECTIVE HAS BEEN A STEPPEDUP LOBBYING CAMPAIGN THIS YEAR BY CITY AND COUNTY OFFICIALS THEY'VE BEEN APPLYING ANTIMANDATE PRESSURE TO THEIR WASHINGTON BRETHREN IN SOME CASES THREATENING RETALIATION IN NEXT YEAR'S MIDTERM CONGRESSIONAL ELECTIONS HENCE A DOZEN BILLS NOW PENDING IN CONGRESS WOULD PROHIBIT UNFUNDED FEDERAL MANDATES OR AT LEAST HELP WITH COSTSHARING WHEN THEY OCCUR AND FINALLY PRESIDENT CLINTON JOINED IN SIGNING AN EXECUTIVE ORDER IN LATE OCTOBER A DAY BEFORE NUM DAY PROHIBITING FEDERAL AGENCIES FROM PUTTING FORTH REGULATIONS THAT PASS ALONG UNFUNDED MANDATES NOT THAT MANY OBSERVERS EXPECT AN EXECUTIVE ORDER OR LEGISLATION IF ANY PASSES TO SOLVE THIS PROBLEM ONE LEGISLATURE NO MATTER HOW GOOD ITS INTENTIONS CAN'T BIND A FUTURE LEGISLATURE ON SOMETHING AS BASIC AS PASSING LAWS AND AUTHORIZING FUNDS SAYS MR HOVEY OF STATE BUDGET AND TAX NEWS BUT CLEARLY THIS DEBATE IS POISONING THE POLITICAL ENVIRONMENT AGAINST ALL KINDS OF FEDERAL INITIATIVES JUST SPEND TWO WEEKS IN PHILADELPHIA DEMOCRATIC MAYOR EDWARD RENDELL SAYS HE'S CONSIDERING A SUPREME COURT CHALLENGE TO THE AMERICANS WITH DISABILITIES ACT PROVISIONS THAT MANDATE PHILADELPHIA TO ALTER CURBS AND BUILD RAMPS WHEN IT PAVES ROADS THE PROVISION WILL SAP ONETHIRD OF HIS CITY'S PUBLIC WORKS BUDGET FOR STREET PAVING AND REPAIR WHICH WILL MEAN A LOT OF STREETS WILL SIMPLY BE NEGLECTED THAT'S WHY WE'RE FIGHTING IT SAYS HIS CHIEF OF STAFF DAVID COHEN THERE ARE A FEW PEOPLE LEFT IN THIS COUNTRY WHO BELIEVE IN LOCAL CONTROL AND LIMITED NATIONAL GOVERNMENT SAYS ARIZONA'S REPUBLICAN GOV FIFE SYMINGTON WHO ASKED HIS STATE LEGISLATURE TO SET ASIDE 1 MILLION TO LEGALLY CHALLENGE THE US GOVERNMENT ON UNFUNDED MANDATES CALIFORNIA MEANWHILE IS FIGHTING AN ORDER FROM THE ENVIRONMENTAL PROTECTION AGENCY COMMANDING IT ALONG WITH OTHER POPULOUS STATES TO BUILD CENTRAL AUTOPOLLUTION TESTING STATIONS AND TO BAR GARAGES FROM PERFORMING SUCH TESTS AND THEN MAKING REPAIRS THE EPA UNDER THE CLEAN AIR ACT CAN HOLD UP CALIFORNIA'S HIGHWAY CONSTRUCTION FUNDS ABOUT 400 MILLION ANNUALLY FOR NONCOMPLIANCE BUT THE STATE CONTINUES TO BALK SAYING A TESTINGSTATION PROGRAM WILL COST 1 BILLION OVER THE NEXT TWO YEARS CALIFORNIA HAS AN ALTERNATIVE PLAN BASED ON COMPUTERIZED MONITORING OF REPAIR SHOPS AND HIGHWAYSIDE EMISSIONS THAT IT CLAIMS WILL COST ONLY 150 MILLION IF WE'RE GOING TO PAY FOR IT SAYS JAMES LEE A SPOKESMAN FOR CALIFORNIA'S ENVIRONMENTAL PROTECTION AGENCY THEN AT LEAST WE SHOULD BE ABLE TO DECIDE HOW BEST TO DO IT WHAT THE HEALTHCARE REFORM PACKAGE AND PLANNED NATIONAL INITIATIVES LIKE WELFARE REFORM NEED IS A LOT OF TRUST AND GOOD WORKING RELATIONSHIPS WITH THE STATES AND RIGHT NOW YOU HAVE THE OPPOSITE SAYS JOHN HOLAHAN DIRECTOR OF THE HEALTH POLICY RESEARCH CENTER AT THE URBAN INSTITUTE A POLICY ANALYSIS GROUP BUT THE STATES SHOULDN'T GET TOO SELFRIGHTEOUS HE ADDS THEY'VE BEEN SENDING UNFUNDED MANDATES DOWN TO THE LOCALITIES FOR YEARS 9312210088 931221 FOREIGN EXCHANGE YEN DECLINES FURTHER AS WORRIES GROW OVER JAPAN'S POLITICAL ECONOMIC WOES BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR CONTINUED TO PUSH HIGHER AGAINST THE YEN AS CONCERN OVER JAPAN'S GLOOMY POLITICAL AND ECONOMIC PICTURE KNOCKED THE YEN LOWER ACROSS THE BOARD THE US DOLLAR ALSO ROSE TO A SIXYEAR HIGH AGAINST THE CANADIAN DOLLAR WHICH FELL SHARPLY AS SPECULATIVE PLAYERS PUSHED IT THROUGH A KEY TECHNICAL LEVEL LATE IN NEW YORK THE US DOLLAR WAS QUOTED AT 17130 MARKS UP FROM 17090 MARKS LATE FRIDAY IN NEW YORK THE DOLLAR ALSO WAS CHANGING HANDS AT 11065 YEN UP FROM 11018 YEN STERLING WAS TRADING AT 14855 DOWN SLIGHTLY FROM 14865 AT ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11065 YEN AND AT 17105 MARKS DURING FRIDAY'S TRADING WORRIES ABOUT THE DISMAL STATE OF THE JAPANESE ECONOMY AND ITS SHAKY GOVERNING COALITION HAD PUSHED THE DOLLAR ABOVE AN IMPORTANT TECHNICAL AND PSYCHOLOGICAL LEVEL AT 110 YEN A BARRIER THAT HAD HELD THE DOLLAR IN CHECK SINCE JULY WEEKEND NEWS REPORTS OUT OF JAPAN ADDED MORE FUEL TO THOSE CONCERNS AND TRADERS RESUMED THEIR THRASHING OF THE YEN WHEN MARKETS REOPENED YESTERDAY CHIEF AMONG THE FACTORS HURTING THE YEN WERE SEVERAL COMMENTS BY KEY MEMBERS OF JAPAN'S RULING COALITION PREDICTING THAT NEW ELECTIONS WOULD HAVE TO BE CALLED IF PRIME MINISTER MORIHIRO HOSOKAWA FAILS TO PUSH THROUGH CONTROVERSIAL POLITICAL REFORMS BY A JAN 29 DEADLINE EVEN IF MR HOSOKAWA EVENTUALLY SUCCEEDS IN GARNERING SUPPORT FOR POLITICAL REFORM AMONG HIS DIVERSE RULING COALITION TRADERS FEEL THE FOCUS ON THAT EFFORT IS SURE TO FURTHER DELAY LONGAWAITED MOVES TO STIMULATE THE JAPANESE ECONOMY THAT CONCERN SENT JAPANESE STOCKS REELING 36 YESTERDAY BUT ANOTHER FACTOR WEAKENING THE YEN TRADERS NOTED WAS A CALL FOR A CUT IN JAPANESE INTEREST RATES BY THE JAPAN RENEWAL PARTY A POWERFUL MEMBER OF THE COALITION GOVERNMENT THE PARTY SAID IT WOULD LIKE TO SEE JAPAN'S OFFICIAL DISCOUNT RATE CUT TO ZERO OR 05 FROM THE CURRENT RATE OF 175 WHICH IS ITSELF A RECORD LOW ALTHOUGH SUCH A MOVE WOULD LIKELY HELP JAPAN'S ECONOMY PLAYERS SEE IT AS DAMAGING TO THE YEN BY LOWERING THE YIELD OFFERED BY YENDENOMINATED DEPOSITS THE YEN'S SLIDE IS A COMBINATION OF POLITICAL CONCERN AND ALSO THAT PEOPLE ARE BEGINNING TO THINK THE PROSPECTS OF A RATE CUT ARE BECOMING PRETTY GOOD SAID DENNIS PETTIT FOREIGN EXCHANGE MANAGER AT LONGTERM CREDIT BANK OF JAPAN IN NEW YORK TRADERS WIDELY AGREED THAT THE DOLLAR'S STRENGTH AGAINST THE YEN IS LIKELY TO CONTINUE OVER THE NEXT FEW DAYS WITH RESISTANCE AT 111 YEN GIVING WAY AS THE DOLLAR HEADS FOR 112 YEN PEOPLE ARE STARTING TO TALK ABOUT 112 YEN AS ANOTHER TARGET SAID MR PETTIT HE ADDED HOWEVER THAT THE CLIMB IS LIKELY TO BE RELATIVELY SLOW I DON'T THINK THERE WILL BE A BIG SURGE IN THE DOLLAR BUT THE SOLID TONE SHOULD CONTINUE SAID RICH SHIMOKAWA VICE PRESIDENT AT SUMITOMO BANK LTD IN NEW YORK MEANTIME THE CANADIAN DOLLAR FELL AGAINST THE US DOLLAR AS SOME SPECULATIVE PLAYERS TOOK ADVANTAGE OF THIN MARKET CONDITIONS TO DRIVE THE CANADIAN UNIT THROUGH A KEY TECHNICAL POINT TRIGGERING STOPLOSS ORDERS BUT THE MOVE BROUGHT INTERVENTION BY THE BANK OF CANADA THAT EVENTUALLY HELPED TO STABILIZE THE CURRENCY LEAVING IT WITH ONLY A MODEST LOSS ON THE DAY LATE IN NEW YORK THE US DOLLAR TRADED AT C13438 UP FROM C13403 FRIDAY AS THE US DOLLAR APPROACHED A KEY LEVEL OF C13425 DURING MORNING TRADING IN NORTH AMERICA A NUMBER OF THE SPECULATIVE PLAYERS ENTERED THE MARKET TO SELL CANADIAN DOLLARS SAID DAVID WALKER MANAGER OF FOREIGN CURRENCY SALES AT TORONTO DOMINION BANK IN NEW YORK THOSE ORDERS REVERBERATED THROUGH THE THIN MARKET MR WALKER NOTED SENDING THE US DOLLAR HIGHER AS OTHER TRADERS JUMPED IN TO COVER THEIR POSITIONS ALTHOUGH TRADERS SAID THE BANK OF CANADA SWIFTLY ENTERED THE MARKET TO BUY CANADIAN DOLLARS THE AMOUNTS WERE SO SMALL THAT IT WASN'T UNTIL THE US DOLLAR HAD REACHED C13460 THAT THE MOVE BEGAN TO HAVE AN EFFECT FROM THERE THE US DOLLAR GENTLY EASED BACK FOR THE REST OF THE DAY BUT TRADERS GENERALLY AGREED THAT THE MOVE HAD OPENED THE DOOR FOR MORE WEAKNESS IN THE CANADIAN DOLLAR IN THE NEAR FUTURE 9312210087 931221 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHINA INTRODUCED A BILL TO USE ABORTIONS AND STERILIZATIONS TO AVOID BIRTHS OF INFERIOR QUALITY AND HEIGHTEN THE STANDARDS OF THE WHOLE POPULATION THE XINHUA NEWS AGENCY SAID PASSAGE IS EXPECTED THE GOVERNMENT URGENTLY NEEDS THE PROPOSED LEGISLATION ON HEALTH PROTECTION AND EUGENICS HUMAN IMPROVEMENTS THROUGH CONTROL OF HEREDITARY FACTORS IN MATING TO STOP THE PREVALENCE OF ABNORMAL BIRTHS XINHUA SAID REPORTING THAT CHINA HAS MORE THAN 10 MILLION DISABLED PERSONS WHO COULD HAVE BEEN PREVENTED THROUGH BETTER CONTROLS THE AGENCY REPORTED THAT PREGNANT WOMEN WHO HAVE BEEN DIAGNOSED AS HAVING CERTAIN INFECTIOUS DISEASES OR AN ABNORMAL FETUS WILL BE ADVISED TO HALT THE PREGNANCY COUPLES IN THE CATEGORY SHOULD HAVE THEMSELVES STERILIZED XINHUA ADDED THAT ANYONE WITH INHERITABLE AILMENTS SUCH AS HEPATITIS VENEREAL DISEASE OR MENTAL ILLNESS WILL BE BANNED FROM MARRYING WHILE CARRYING THE DISEASE CHINA ALREADY HAS STRICT BIRTHCONTROL RULES LIMITING MOST FAMILIES TO ONE CHILD AND ENCOURAGING ABORTIONS TO DAMP GROWTH OF THE 12 BILLION POPULATION MANY MOVIE THEATERS IN SPAIN CLOSED IN A ONEDAY PROTEST OF A PROPOSED DECREE TO RESTRICT US FILMS THE RECENT GLOBAL ACCORD TO LIBERALIZE TRADE DIDN'T LOWER BARRIERS TO IMPORTS OF MOVIES AND TELEVISION SHOWS SOME EUROPEAN COMMUNITY MEMBERS INSISTED ON KEEPING RESTRICTIONS ON FOREIGN MOVIES TO PROTECT THE 12 EC COUNTRIES' FILMMAKERS AND CULTURES SPAIN'S DECREE WOULD REQUIRE THEATERS IN CITIES WITH MORE THAN A 125000 POPULATION TO SCHEDULE ONE DAY OF ECPRODUCED FILMS FOR EVERY TWO DAYS OF NONEC FILMS AND ONE IN THREE IN LESS POPULOUS AREAS OF THE MOVIES SHOWN IN SPAIN 77 ARE MADE IN THE US 9 IN SPAIN AND 14 IN OTHER EC NATIONS VIETNAM THIS MONTH AIMS TO PASS ITS FIRST WIDERANGING ENVIRONMENTAL LAW DESIGNED TO ENCOURAGE ACTIVITIES BY FOREIGN OIL COMPANIES THE GOVERNMENT WHICH IS WORKING TO NORMALIZE RELATIONS WITH THE US AND END ITS TRADE EMBARGO BEFORE THE END OF NEXT YEAR IS CONSIDERING ENVIRONMENTAL REGULATIONS TO ALLOW BALANCING DEVELOPMENT WITH POLLUTION CONTROL VIETNAM INITIALLY WANTS THE RULES TO BE SIMPLE AND ENFORCEABLE WITH LESSSTRICT POLLUTION STANDARDS THAN THOSE IN DEVELOPED NATIONS ABOUT 200000 OR 40 OF THE WORKERS AT SRI LANKAN GOVERNMENTOWNED TEA ESTATES WALKED OUT IN RESPONSE SRI LANKA INVOKED A LAW THAT ALLOWS JAIL TERMS OF THREE MONTHS TO 20 YEARS FOR INCITING GOVERNMENT HATRED OR CONTEMPT WORKERS AT THE 55 STRUCK PLANTATIONS ARE DAY LABORERS MOSTLY TAMILS WHO GOT ABOUT 200 DAYS ON THE JOB THIS YEAR AMONG OTHER THINGS THEIR UNION DEMANDS AT LEAST 300 DAYS OF WORK OR PAY FOR LAYOFFS INDONESIAN SORCERERS GAVE A RARE PUBLIC DEMONSTRATION OF THEIR WIDELY PRACTICED ART TO JUDGES POLICE OFFICERS AND LAWYERS TRYING TO DETERMINE WHETHER THE GOVERNMENT SHOULD PURSUE PLANS TO BAN BLACK MAGIC THE JAKARTA POST SAID A MAN WAS STABBED WITHOUT BLEEDING OR SHOWING PAIN THE GOVERNMENT PROPOSES TO MAKE WITCHCRAFT PUNISHABLE BY FIVE YEARS IN JAIL PARANORMALS SAID A BAN WOULD JUST MAKE THEM MORE SELECTIVE ABOUT THEIR CLIENTS A FAITH HEALER SAID HIS CUSTOMERS RANGED FROM TAXI DRIVERS TO TOP GOVERNMENT OFFICIALS A JAN 1 INCREASE IN GERMANY'S TAX ON GASOLINE AND DIESEL FUEL WILL RAISE AN ADDITIONAL 369 BILLION NEXT YEAR FAR LESS THAN THE GOVERNMENT'S 463 BILLION PROJECTION THE IFO INSTITUTE FOR ECONOMIC RESEARCH SAID IFO SAID PERSONAL INCOMES NEXT YEAR WILL GROW WEAKLY PRESSURED BY HIGHER PENSION DEDUCTIONS WHILE OTHER SOCIALSECURITY EXPANSIONS WILL BE SOUGHT SUCH AS FOR LONGTERM CARE THE FUELTAX INCREASE RAISES THE PUMP PRICE OF GAS TO 175 A LITER NEARING THE 2 LEVEL THAT IFO SAID WOULD CAUSE CONSUMERS TO CUT USAGE TAIWAN WILL REMOVE RESTRICTIONS TO OPEN FINANCIAL MARKETS WIDER TO FOREIGN INVESTMENT AND FREER MOVEMENT OF CAPITAL THE GOVERNMENT SAID THE EASING IS NEEDED AS TAIWAN SEEKS TO ENTER THE GENERAL AGREEMENT ON TARIFFS AND TRADE WHICH WORKS TO LOWER GLOBAL BARRIERS UNDER TAIWAN'S PLAN FOREIGNERS WILL BE ALLOWED TO INVEST IN ALL PRIVATE FINANCIAL INSTITUTIONS INCLUDING BANKS INSURANCE COMPANIES AND SECURITIES AND FUTURES BROKERAGE FIRMS NOW FOREIGNERS ARE BANNED FROM INVESTING IN BANKS AND THEIR HOLDINGS IN OTHER KINDS OF FIRMS ARE CAPPED SEPARATELY CHINA SUBMITTED LEGISLATION TO GUARANTEE PROTECTION OF INVESTMENT FROM TAIWAN DESIGNATING IT AS DOMESTIC TO REFLECT BEIJING'S POLICY THAT TAIWAN IS A RENEGADE CHINESE PROVINCE SUCH INVESTMENT WOULDN'T BE SUBJECT TO NATIONALIZATION AND ALL EARNINGS COULD BE REPATRIATED CHINA HAS EASED CURBS ON INDIRECT INVESTMENT FROM TAIWAN DESPITE DISCORD ABOUT POLITICAL STATUS SPAIN WILL PROPOSE AN ELECTRICITY RATE INCREASE OF 206 THE SMALLEST IN A DECADE AND LESS THAN THE 35 ANNUAL INFLATION PACE EXPECTED POWER RATES THIS YEAR ROSE 29 A CHINESE STATERUN NEWSPAPER REPORTED QUANHU VILLAGERS BEAT UP POLICE INVESTIGATING A TAXEVASION CASE AND SMASHED THEIR CARS THE INCIDENT IN HEBEI PROVINCE UNDERSCORES RISING VIOLENCE AS ECONOMIC REFORMS EASED GOVERNMENT CONTROL AND UNLEASHED ANGER AT OFFICIALS FOR EXACTING A BEVY OF TAXES AND FEES 9312210086 931221 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM 2545 MILLION OF NOTES DUE DEC 30 1996 PRICED AT PAR TO YIELD 457 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF FIVE BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO INCO LTD SIX MILLION COMMON SHARES PRICED AT 34125 CANADIAN DOLLARS US25467 EACH THROUGH UNDERWRITERS LED BY WOOD GUNDY INC EMERGING MARKETS INFRASTRUCTURE FUND INC INITIAL OFFERING OF 14 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 19931663 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 354 MONTHS ALLIANCE FUNDING CO 1065 MILLION OF HOMEEQUITY LOAN ASSETBACKED CERTIFICATES PRICED IN THREE PARTS BY UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE 40 MILLION OF CLASS A1 FIXEDRATED CERTIFICATES WITH A 336YEAR AVERAGE LIFE WAS PRICED AS 58 AT 99828125 TO YIELD 579 A 115BASISPOINT SPREAD ABOVE TREASURYS THE CERTIFICATES WERE RATED TRIPLEA BY FITCH INVESTORS SERVICE INC MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP BASED ON A 100 INSURANCE GUARANTEE PROVIDED BY THE FINANCIAL GUARANTY INSURANCE CO THE 60725 MILLION OF CLASS 2A1 FLOATINGRATE CERTIFICATES WITH A 432YEAR AVERGE LIFE WAS PRICED AT 102703125 TO FLOAT 230 BASIS POINTS ABOVE THE ONEYEAR CONSTANTMATURITY TREASURY INDEX THE CERTIFICATES WERE RATED TRIPLEA BY MOODY'S AND DUFF & PHELPS CO THE 5775 MILLION OF CLASS 2A2 FLOATINGRATE CERTIFICATES WITH A 810YEAR AVERAGE LIFE WAS PRICED AT 102546875 TO YIELD 230 BASIS POINTS ABOVE THE ONEYEAR CONSTANTMATURITY TREASURY INDEX THE CERTIFICATES WERE RATED SINGLEA1 BY MOODY'S AND SINGLEA BY D&P ALLIANCE FUNDING IS A DIVISION OF SUPERIOR BANK FSB EUROPEAN SOVEREIGN INVESTMENTS LUXEMBOURG 150 MILLION SWISS FRANCS OF NOTES DUE JAN 3 1997 CARRYING COUPON AT SIXMONTH SWISSFRANC LONDON INTERBANK OFFERED RATE PRICED AT 1005 VIA CREDIT SUISSE SANWA AUSTRALIA FINANCE LTD JAPANESE PARENT 50 MILLION OF REVERSE FLOATINGRATE EURONOTES DUE JAN 21 2004 AT ISSUE PRICE PAR VIA SANWA INTERNATIONAL PLC FROM JAN 21 TO JAN 21 1997 INTEREST PAID SEMIANNUALLY AT 04 POINT OVER SIXMONTH LIBOR THEREAFTER COUPON 9 CALLABLE AT PAR EVERY YEAR ON INTEREST PAYMENT DATE FROM JAN 21 1997 GUARANTOR SANWA BANK LTD FEES 03 9312210085 931221 BUSINESS BRIEF FIBREBOARD CORP TWINS OWNER POHLAD BUYS STAKE AND MAY SEEK CONTROL A COMPANY LED BY MINNESOTA FINANCIER CARL POHLAD HAS TAKEN A STAKE IN FIBREBOARD CORP AND SAYS IT MIGHT SEEK TO BUY THE WALNUT CREEK CALIF MAKER OF WOOD AND INSULATION PRODUCTS CRP 3800 INC A MINNEAPOLIS INVESTMENT FIRM PURCHASED 283900 SHARES OR 68 OF FIBREBOARD'S OUTSTANDING SHARES FOR 863 MILLION ACCORDING TO A SECURITIES AND EXCHANGE COMMISSION FILING CITED BY THE ASSOCIATED PRESS THE SHARES WERE PURCHASED BETWEEN NOV 12 AND LAST FRIDAY AT PRICES RANGING FROM 2712 TO 32 A SHARE FIBREBOARD OFFICIALS COULDN'T BE REACHED FOR COMMENT FIBREBOARD SHARES CLOSED YESTERDAY AT 3175 OFF 375 CENTS ON THE AMERICAN STOCK EXCHANGE CRP 3800 SAID IN ITS FILING THAT IT CONSIDERS FIBREBOARD'S STOCK UNDERVALUED AND SAID IT MAY DETERMINE TO SEEK CONTROL OF THE COMPANY MR POHLAD OWNS THE MINNESOTA TWINS BASEBALL TEAM 9312210084 931221 MERRYGOROUND SAYS SOME VENDORS MAY NOT SHIP KEY SPRING MERCHANDISE BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERRYGOROUND ENTERPRISES INC SAID SOME OF ITS VENDORS MAY NOT SHIP KEY SPRING MERCHANDISE TO ITS CLOTHING STORES WHICH CATER TO YOUNG MEN AND WOMEN IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE JOPPA MD RETAILER SAID THAT IF NEGOTIATIONS WITH ITS LENDERS ARE UNSUCCESSFUL AND IF SPRING MERCHANDISE SHIPMENTS ARE CUT OFF IT MAY BE FORCED TO FILE FOR PROTECTION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE THIS MONTH MERRYGOROUND WHICH OPERATES STORES MOSTLY UNDER THE NAMES CHESS KING CIGNAL AND MERRYGOROUND REPORTED A 385 MILLION NET LOSS FOR THE QUARTER ENDED OCT 30 MAINLY FROM A 351 MILLION CHARGE TO WRITE DOWN SLOWMOVING MERCHANDISE THE COMPANY SAID THAT WHILE IT HAS REGULARLY BEEN PAYING OFF DEBT THE NET LOSS FOR THE QUARTER AND NINE MONTHS PLACED THE COMPANY IN TECHNICAL VIOLATION OF CREDIT AGREEMENTS IN A NEWS RELEASE THE COMPANY SAID CLASSIFICATION OF ITS DEBT AS CURRENT LIABILITIES PLACED IT IN VIOLATION OF THE WORKING CAPITAL AND CURRENT RATIO COVENANTS CONTAINED IN THE REVOLVING CREDIT ARRANGEMENT AND THE LONGTERM UNSECURED FINANCING AGREEMENT WITH ITS INSTITUTIONAL LENDERS WHILE THE COMPANY SAID IT IS IN DISCUSSIONS WITH PRINCIPAL LENDERS TO OBTAIN WAIVERS OF EXISTING COVENANT VIOLATIONS AND TO AMEND OR RESTRUCTURE THE COMPANY'S BORROWING ARRANGEMENTS MERRYGOROUND SAID THERE IS NO GUARANTEE IT WILL BE SUCCESSFUL THE COMPANY SAID IT IS IN DISCUSSIONS WITH CERTAIN UNRELATED LENDERS TO SEEK ADDITIONAL FINANCING IF UNSUCCESSFUL IN BOTH MATTERS THE COMPANY SAID IT WOULD BE UNABLE TO MEET ITS BORROWING AND OTHER OBLIGATIONS AS THEY COME DUE THE COMPANY WOULDN'T DISCLOSE THE DUE DATES FOR THOSE OBLIGATIONS MERRYGOROUND ADDED THAT WHILE IT HAS RECEIVED ADEQUATE LEVELS OF GOODS FOR THE HOLIDAYS IT HAS BEEN NOTIFIED BY CERTAIN FACTORING COMPANIES USED BY MANY OF ITS SUPPLIERS THAT ORDERS FOR THE SPRING SELLING SEASON HAVEN'T BEEN APPROVED AND THESE SUPPLIERS MAY NOT FULFILL THE COMPANY'S SPRING MERCHANDISE ORDERS ALSO RECENT SHIPMENTS HAVE HAD SOME DISRUPTION AND CERTAIN VENDORS HAVE BEEN UNWILLING TO DELIVER MERCHANDISE ON CREDIT THE COMPANY SAID FACTORS ACT AS FINANCING COMPANIES THAT GUARANTEE THAT SUPPLIERS WILL BE PAID FOR SHIPMENTS TO RETAILERS RICHARD POSNER EXECUTIVE VICE PRESIDENT OF CREDIT EXCHANGE INC A CREDIT MONITORING AGENCY DESCRIBED MERRYGOROUND AS BADLY TROUBLED AND SAID THE POSSIBLE MOVE BY VENDORS TO CUT OFF SPRING SHIPMENTS WAS OMINOUS THIS WOULD HAVE TO PUT A DENT IN ANY PLANS THEY HAVE FOR SPRING MR POSNER SAID IT'S VERY ELEMENTAL THAT IF THEY HAVE MISSED PAYMENTS WITH FACTORS FACTORS AREN'T GOING TO ALLOW ORDERS TO GO THROUGH SO WHO IS GOING TO SHIP TO THEM IN AN ATTEMPT TO CONSERVE AND MANAGE ITS CASH THE COMPANY SAID IT PLANNED AMONG OTHER MEASURES TO DELAY PAYMENT OF CERTAIN AMOUNTS OWED TO CERTAIN FACTORS VENDORS AND SUPPLIERS 9312210083 931221 BUSINESS BRIEF ROCHESTER TELEPHONE CORP CONCERN PLANS SALE OF UNIT EXPANSION IN CELLULAR MARKET ROCHESTER TELEPHONE CORP SAID IT PLANS TO EXPAND ITS CELLULAR COVERAGE IN UPSTATE NEW YORK IN A JOINT VENTURE WITH NYNEX CORP BOOST ITS INTEREST IN AN ALABAMA CELLULAR COMPANY AND SELL A NORTH DAKOTA TELEPHONE COMPANY ROCHESTER TEL ALREADY OWNS 24 OF A CELLULAR LICENSE SERVING BINGHAMTON NY AND SAID NYNEX AGREED TO BUY 41 OF THE BINGHAMTON LICENSE AS WELL AS A LICENSE TO SERVE ELMIRA NY FROM CONTEL CELLULAR INC ROCHESTER TEL MOBILE WILL SERVE AS THE OPERATING PARTNER FOR THE 5050 PARTNERSHIP IN UPSTATE NEW YORK BETWEEN ROCHESTER TEL AND NYNEX THE COMPANY ALSO SAID IT WILL BOOST ITS OWNERSHIP IN SOUTH ALABAMA CELLULAR PARTNERSHIP OF MONROEVILLE ALA TO 696 FROM 506 IN ADDITION ROCHESTER TEL SAID IT SIGNED A DEFINITIVE AGREEMENT TO SELL MINOT TELEPHONE CO OF NORTH DAKOTA TO SOURIS RIVER TELECOMMUNICATIONS COOPERATIVE OF MINOT ND IN A CASH TRANSACTION TERMS OF THE THREE TRANSACTIONS WHICH ARE SUBJECT TO REGULATORY APPROVAL WEREN'T DISCLOSED 9312210082 931221 BUSINESS BRIEF BANYAN SYSTEMS INC NET IN FOURTH QUARTER YEAR TO TRAIL ANALYSTS' FORECASTS BANYAN SYSTEMS INC WESTBORO MASS SAID NET INCOME AND REVENUE FOR THE FOURTH QUARTER AND YEAR ARE LIKELY TO TRAIL ANALYSTS' EXPECTATIONS THE PRODUCER OF SOFTWARE FOR COMPUTER NETWORKS SAID SALES INQUIRIES REMAIN HIGH BUT WE ARE EXPERIENCING SOME DELAYS IN CUSTOMER PURCHASE DECISIONS BANYAN SHARES ROSE 125 CENTS TO 25625 IN NASDAQ STOCK MARKET TRADING THE ANNOUNCEMENT WAS MADE LATE IN THE DAY BANYAN SAID NET INCOME FOR THE FOURTH QUARTER LIKELY WILL TOP THE YEARAGO 29 MILLION OR 16 CENTS A SHARE BUT TRAIL ANALYSTS' EXPECTATIONS OF 24 CENTS TO 27 CENTS A SHARE IT DECLINED TO BE MORE SPECIFIC FOR THE FULL YEAR NET WILL TOP THE YEAREARLIER 82 MILLION OR 50 CENTS A SHARE BUT TRAIL ANALYSTS' PROJECTIONS OF 76 CENTS TO 81 CENTS A SHARE IT SAID 9312210081 931221 WHO'S NEWS IBM EXPECTED TO NAME EXNABISCO AIDE THOMAN TO KEY PERSONALCOMPUTER POST BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INTERNATIONAL BUSINESS MACHINES CORP TODAY IS EXPECTED TO NAME A FORMER NABISCO MARKETING EXECUTIVE WITH VIRTUALLY NO HIGHTECH EXPERIENCE TO A TOP POST OVERSEEING TWO CRITICAL AREAS PERSONAL COMPUTERS AND THE NEW POWERPC DIVISION G RICHARD THOMAN 49 YEARS OLD WHO RECENTLY RESIGNED AS HEAD OF RJR NABISCO HOLDINGS CORP'S NABISCO INTERNATIONAL UNIT WILL BECOME AN IBM SENIOR VICE PRESIDENT AND GROUP EXECUTIVE HIS APPOINTMENT FITS IN WITH IBM CHAIRMAN LOUIS V GERSTNER'S STRATEGY OF RECRUITING OUTSIDERS FOR HIGH LEVELS OF THE COMPANY DESPITE THEIR LACK OF TECHNOLOGICAL BACKGROUNDS IN THE CASE OF MR THOMAN INDUSTRY EXECUTIVES FAMILIAR WITH THE SEARCH SAY MR GERSTNER WHO WORKED WITH MR THOMAN AT THREE COMPANIES PREVIOUSLY WAS LOOKING FOR AN EXECUTIVE WITH A STRONG INTERNATIONAL AND MARKETING BACKGROUND MR THOMAN'S RESPONSIBILITIES WILL INCLUDE PUSHING MORE CONSUMER AWARENESS AN AREA THAT HAS BEEN WEAK AT IBM AND OVERSEEING PENNANT SYSTEMS IBM'S HIGHEND PRINTER BUSINESS AND PRODIGY SERVICES CO THE ONLINE SERVICE PARTNERSHIP WITH SEARS ROEBUCK & CO BUT WHILE MR GERSTNER HAS BEEN PRAISED FOR BRINGING IN NONTECHNOLOGY TYPES IN AREAS SUCH AS FINANCE THE SELECTION OF MR THOMAN IS LIKELY TO RAISE SOME EYEBROWS SOME EXPERTS WONDER HOW MR THOMAN CAN GUIDE IBM PERSONAL COMPUTER CO AND POWERPC THE HIGHPOWERED CHIP DEVELOPED WITH MOTOROLA INC AND APPLE COMPUTER INC AND NOW ENTERING THE MARKET WITHOUT KNOWING WHERE COMPUTERS ARE HEADED A BUILTIN BASIC TECH LITERACY IS IMPORTANT SAID GERALD ROSS OF CHANGE LAB INTERNATIONAL A CONSULTING FIRM THE PC IS CHANGING ITS OWN DEFINITION SOMEBODY NEEDS TO UNDERSTAND WHAT TECHNOLOGY IS DOING TO THE DEFINITION OF A COMPUTER ITSELF POWERPC FOR EXAMPLE FACES A DIFFICULT MARKETING CHALLENGE AS IT TAKES ON INTEL CORP WHICH MAKES THE MICROPROCESSORS USED IN THE VAST MAJORITY OF THE WORLD'S PCS IBM WILL HAVE TO CONVINCE OTHER COMPUTER MAKERS INCLUDING ITS OWN PC COMPANY TO INCORPORATE THE POWERPC CHIP FOR IT TO BE SUCCESSFUL OTHERS HOWEVER HAVE ARGUED THAT IBM COULD BENEFIT FROM A CLEVER MARKETER NOTING THAT FORMER APPLE CHAIRMAN JOHN SCULLEY CAME FROM PEPSICO INC AND STEERED THAT COMPANY INTO A MAJOR REBOUND IN THE 1980S IBM IS SEEN AS HAVING MISSED OUT ON MUCH OF THE TREMENDOUS GROWTH IN THE CONSUMER END OF THE COMPUTER MARKET BY BEING SO HEAVILY GEARED TO ITS CORPORATE CUSTOMERS MORE THAN 80 OF IBM PC CO SALES NOW GO TO COMMERCIAL CUSTOMERS ACCORDING TO INDUSTRY DATA MEANWHILE MORE THAN 40 OF THE TOTAL COMPUTER MARKET'S FUTURE GROWTH IS EXPECTED TO BE IN HOME COMPUTERS IBM HASN'T BEEN TAKING ADVANTAGE OF THIS OPPORTUNITY SAID RICHARD ZWETCHKENBAUM OF INTERNATIONAL DATA CORP A MARKETRESEARCH FIRM MR THOMAN HAD FIRST WORKED WITH MR GERSTNER HIMSELF NO TECHIE AT CONSULTING FIRM MCKINSEY & CO THE NEW IBMER HAS A DEEP BACKGROUND IN ECONOMICS AND INTERNATIONAL FINANCE AND HE FOLLOWED MR GERSTNER TO AMERICAN EXPRESS CO IN 1979 HE TOOK A TOP POST IN TRAVEL RELATED SERVICES AND ROSE UP INSIDE THE COMPANY AS MR GERSTNER ALSO DID WELL THERE IN 1992 MR THOMAN FOLLOWED MR GERSTNER ONCE AGAIN THIS TIME TO RJR NABISCO IN HIS 16 MONTHS THERE MR THOMAN TRAVELED CEASELESSLY IN AN EFFORT TO REBUILD RJR'S INTERNATIONAL BUSINESS RECEIVING HIGH MARKS FOR HIS EFFORT MOST OF RJR'S INTERNATIONAL OPERATIONS HAD BEEN SOLD TO PAY OFF DEBT AFTER THE 1989 BUYOUT SOME PEOPLE FAMILIAR WITH MR THOMAN REGARD HIM AS A GOOD MANAGER BUT AS SOMEBODY WHO CARRIES OUT PLANS FOR MR GERSTNER RATHER THAN CHARTING HIS OWN COURSE MR THOMAN IS PART OF THE GERSTNER MAFIA SAYS ONE EXECUTIVE THAT HAS WORKED WITH BOTH MEN EBEN SHAPIRO CONTRIBUTED TO THIS ARTICLE 9312210080 931221 AMERITECH GE PLAN 472 MILLION DATA VENTURE US LONGDISTANCE RULES HOWEVER ARE OBSTACLE TO BABY BELL'S MOVE BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERITECH CORP AGREED TO INVEST 472 MILLION IN A NEW DATASERVICES VENTURE WITH GENERAL ELECTRIC CO'S INFORMATION SERVICES SUBSIDIARY GE AND AMERITECH THE CHICAGOBASED BELL COMPANY SAID THE NEW UNIT WILL CREATE AND MARKET DATATRANSMISSION PRODUCTS AND SERVICES TO BUSINESS THAT IS ESSENTIALLY THE BUSINESS THAT GENERAL ELECTRIC INFORMATION SERVICES CO ALREADY IS IN BUT AMERITECH'S PLAN TO INVEST IN THE GLOBAL DATATRANSMISSION VENTURE WOULD PUT IT AT ODDS WITH FEDERAL RULES THAT BLOCK THE BABY BELLS FROM TRANSMITTING PHONE CALLS OR ANY OTHER KIND OF TRAFFIC ACROSS THEIR BOUNDARIES THE PACT WITH GE SEEMS CERTAIN TO FURTHER ANTAGONIZE LONGDISTANCE CARRIERS SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS CORP WHICH HAVE FOUGHT TO KEEP THE BABY BELLS OFF THEIR TURF UNTIL THERE IS FULL AND EFFECTIVE COMPETITION IN THE LOCAL EXCHANGE BELL COMPANIES SHOULDN'T BE IN THE LONGDISTANCE BUSINESS AN AT&T SPOKESMAN SAID IN COMMENTING ON AMERITECH'S ANNOUNCEMENT WE'RE NOWHERE NEAR THAT TODAY IN FACT ABOUT 999 OF LONGDISTANCE TRAFFIC STILL FLOWS THROUGH THE LOCAL EXCHANGE THAT EACH BABY BELLS CONTROLS IN ITS REGION AMERITECH SENSING A BACKLASH STRUCTURED THE DEAL WITH GE SO THAT ITS INVESTMENT AMOUNTS TO A FOURYEAR LOAN AS IT TRIES TO WIN PERMISSION FROM THE FEDERAL GOVERNMENT TO OFFER LONGDISTANCE SERVICES IF A GREEN LIGHT COMES WITHIN FOUR YEARS OF ITS INVESTMENT THE 472 MILLION NOTE WOULD CONVERT INTO A 30 STAKE IN THE NEW COMPANY AND AMERITECH WOULD GET TWO BOARD SEATS OUT OF FIVE THE COMPANY SAID THE REGIONAL BELL COMPANY HAS BEEN PRESSURING THE JUSTICE DEPARTMENT TO DROP LEGAL RESTRICTIONS THAT BAR THE BABY BELLS FROM OFFERING LONGDISTANCE SERVICES IT AND SEVERAL OTHER BELL COMPANIES FILED A PETITION WITH JUSTICE TO DROP THE BAN ON LONGDISTANCE IN ADDITION AMERITECH TWO WEEKS AGO PETITIONED JUSTICE TO LET IT BEGIN AN EXPERIMENT HANDLING LONGDISTANCE CALLS THAT START INSIDE ITS SERVICE AREA ACKNOWLEDGING OBSTACLES IN THE LONGDISTANCE INDUSTY AMERITECH PRESIDENT RICHARD NOTEBAERT SAID WHAT IS FRUSTRATING IS THAT GE INFORMATION SERVICES OPERATES IN 31 COUNTRIES AND WE CAN OPERATE IN 30 OF THEM BUT NOT IN ONE THE US HE ADDED WE CAN DO WORK FOR FORD IN ENGLAND BUT HERE IN DETROIT THEIR HEADQUARTERS I'M PREVENTED FROM WORKING WITH THEM A GE SPOKESMAN BRUSHED ASIDE THE CONCERNS OF THE LONGDISTANCE COMPANIES THIS IS A BIG MARKET ELECTRONIC COMMERCE IS BIG THERE'S LOTS OF ROOM IN THIS INDUSTRY FOR LOTS OF PEOPLE HE SAID GE SAID GE INFORMATION SERVICES BASED IN ROCKVILLE MD GENERATES 600 MILLION IN ANNUAL REVENUE PROVIDING VALUEADDED NETWORK SERVICES TO CORPORATIONS THESE SERVICES INCLUDE DATA NETWORK MANAGEMENT ELECTRONIC MAIL THROUGH THE GENIE NETWORK AND ELECTRONIC DATA INTERCHANGE SERVICES THAT LINK THE BACK OFFICES OF CORPORATIONS WITH THEIR SUPPLIERS AND BANKS WHILE GE DOESN'T BREAK OUT GENIE'S NUMBERS AN INDIVIDUAL CLOSE TO GE SAID THE ELECTRONICMAIL UNIT'S ANNUAL REVENUE IS ABOUT 30 MILLION THE MARKET FOR ELECTRONIC DATA INTERCHANGE HOWEVER IS GROWING AT ONLY HALF THE RATE ANALYSTS HAD FORECAST A FEW YEARS AGO THERE'S STILL A LOT OF INERTIA AMONG THE BIG COMPANIES WHO FEAR THAT THEY'LL HAVE TO RADICALLY CHANGE THE WAYS THEY DO BUSINESS IF THEY ADOPT EDI SAYS KITTY WELDON AN ANALYST AT YANKEE GROUP BOSTON STILL SUCH SERVICES ARE GROWING 30 A YEAR WITH ANNUAL REVENUES CURRENTLY AT 500 MILLION THAT IS ABOUT A QUARTER OF THE 22 BILLION IN REVENUES THAT US DATA CARRIERS REALIZED THIS YEAR FROM VALUEADDED NETWORK SERVICES YANKEE GROUP ESTIMATED GLOBAL REVENUES FROM VALUEADDED NETWORK SERVICES WERE ABOUT 46 BILLION LAST YEAR AND ARE GROWING ABOUT 15 A YEAR GE SAID HELLENE S RUNTAGH CURRENTLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GE INFORMATION SERVICES WILL HEAD THE NEW COMPANY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GE SHARES FELL 875 CENTS TO 10425 WHILE AMERITECH SHARES EDGED DOWN 25 CENTS TO 78625 9312210079 931221 CHILDREN DEAR SANTA MY UNCLE CRAIG SOLD THE NINTENDO BECAUSE HE IS ON DRUGS BY HEIDI EVANS STAFF REPORTER OF THE WALL STREET JOURNAL UNLIKE THE WISHES OF MANY BOYS HIS AGE FOR ELECTRONIC GAMES MOUNTAIN BIKES AND COMPACTDISK PLAYERS 13YEAROLD PAUL ACOSTA'S SELFLESS CHRISTMAS LIST REFLECTS THE PAIN OF MANY INNERCITY CHILDREN DEAR SANTA I HAVE BEEN TRING TO BE NICE AND BEN DOING A GOOD JOB THE REASON I AM RITING IS THINGS ARE HARD MONEY WISE MY MOM IS ON WELLFARE AND BEAN ON WELLFARE WE CAN BEARLY MAKE THE RENT AND THE BILLS BY A FEW DOLLARS AND FOOD PLEASE HELP WHAT YOU CAN THANK YOU POSTAL WORKERS IN CITIES ACROSS AMERICA SAY THEY SEE IN THIS YEAR'S LETTERS TO SANTA A NEW LEVEL OF DESPAIR AS A GROWING NUMBER OF URBAN CHILDREN ASK NOT FOR TOYS BUT FOR THE ESSENTIALS OF LIFE FOOD A BED COATS AND SHOES FOR THEIR SIBLINGS ONE ATLANTA GIRL ASKED SANTA IF HE COULD GET HER GRANDMOTHER'S HAIR FIXED EVERY CHRISTMAS SEASON SOME 500000 LETTERS ADDRESSED SIMPLY TO SANTA OR SANTA AT THE NORTH POLE BEGIN AND END THEIR JOURNEY AT THE NATION'S POST OFFICES LIKE THE LETTER FROM PAUL WHO LIVES IN EAST LOS ANGELES MANY OF THESE LETTERS ARE FILLED WITH TALES OF POVERTY DRUGS AND BROKEN FAMILIES IN THE MIDST OF WHAT SEEMS LIKE AN ECONOMIC RECOVERY FOR MANY IN THE NATION A SURVEY FOR THE CONSUMER FEDERATION OF AMERICA FOUND THAT TEENAGERS WILL RECEIVE AN AVERAGE OF 20 TO 25 GIFTS THIS CHRISTMAS MANY LETTERS TO SANTA TELL A LESS HOPEFUL STORY TO GET A GOOD DAD WROTE A BOY FROM ATLANTA WHOSE MOTHER IS AN ALCOHOLIC TO REPLACE THE NINTENDO MY UNCLE CRAIG SOLD HE IS ON DRUGS I'LL TAKE ANYTHING YOU CAN BRING WROTE A SECONDGRADER FROM LOS ANGELES A YOUNGSTER FROM CHICAGO ASKED FOR BOOTS AND GLOVES FOR MY BROTHERS SO THEY CAN GO TO SCHOOL WARM ONE NINEYEAROLD BOY ADDED A POSTSCRIPT TOYS I LIKE BUT I KNOW THEY ARE EXTRA POSTAL EMPLOYEES WHO USED TO FIND THAT OPENING SANTA LETTERS PUT A SMILE ON THEIR FACES NOW FIND THE TASK TO BE AN EMOTIONAL ROLLER COASTER I NEED A BOX OF TISSUES EVERY TIME I SIT DOWN AND START READING SAID VALARIE WASHINGTON WHO HAS BEEN SIFTING THROUGH LETTERS AT LOS ANGELES'S MAIN POST OFFICE IN SOUTH CENTRAL THIS SEASON WE HAD ONE LAST WEEK FROM A LITTLE GIRL WHO DIDN'T LEAVE HER ADDRESS ALL SHE WANTED WAS HER MOMMY TO GET WELL SHE DIDN'T WANT ANY TOYS JUST THAT WE ANSWER THE LETTER I WAS JUST BAWLING EVELYN REAMS A POSTAL WORKER IN CHICAGO WHO HAS BEEN READING SANTA'S MAIL FOR THE PAST SEVEN YEARS SAID ALMOST EVERY OTHER LETTER SHE AND HER COWORKERS HAVE OPENED ASKS FOR FOOD OR WARM CLOTHES TRIPLE THE NUMBER OF SUCH REQUESTS FROM LAST YEAR SHE ESTIMATED WHEN YOU GET OFF WORK THESE DAYS YOU LOOK FOR SOMETHING TO CHEER YOU UP SAID MS REAMS WHO EXPECTS MORE THAN 12000 LETTERS FROM NEEDY FAMILIES THIS YEAR SO WHEN WE GET LETTERS FROM LITTLE KIDS ASKING FOR TOYS OR A LIST FALLS OUT WITH 50 THINGS ON IT THAT HELPS IT MAKES YOU LAUGH THE SIGNS OF TROUBLE ARE NOT ONLY IN THE CHILDREN'S LETTERS BUT IN THE SURPRISING NUMBER OF LETTERS THAT COME FROM ADULTS ESPECIALLY GRANDPARENTS A GROWING NUMBER OF WHOM ARE RAISING THEIR CHILDREN'S CHILDREN BECAUSE DRUGS VIOLENCE AND AIDS HAVE CLAIMED THE PARENTS WRITING TO SANTA HAS BECOME A LASTDITCH PLEA FOR HELP LETTERS ARRIVE AS EARLY AS AUGUST MARY BROWN 51 YEARS OLD FROM PHILADELPHIA WRITES I AM A GRANDMOTHER RAISING THREE GRANDCHILDREN HASHAAN 9 NATHANIEL 7 AND RICHARD 3 TIMES ARE A LITTLE TOUGH AS THE MONEY PUBLIC WELFARE GIVES IS NOT ENOUGH TO MEET THEIR NEEDS SUCH AS CLOTHES AND SHOES BECAUSE THEY'RE GROWING FAST AND EVERY TIME I TURN AROUND THEY'VE OUTGROWN SOMETHING I WOULD BE GRATEFUL FOR ANY HELP I CAN GET IN A TELEPHONE INTERVIEW MRS BROWN SAID HER DAUGHTER BECAME A CRACK ADDICT FIVE YEARS AGO AND WAS FORCED TO GIVE UP HER SIX CHILDREN THE GRANDMOTHER TOOK CUSTODY OF THREE OF THE BOYS TWO OF WHOM MADE THE SCHOOL HONOR ROLL THIS YEAR SHE SAID PROUDLY SO THEY WOULDN'T BE PLACED IN FOSTER CARE FOR THE SECOND YEAR IN A ROW PEOPLE FROM THE PHILADELPHIA AREA HAVE ANSWERED HER LETTER BY SENDING PRESENTS IN MOST MAJOR CITIES AND MANY SMALLER ONES THE LETTERS ARE SORTED AND PUT OUT IN BOXES FOR THE PUBLIC TO COMB THROUGH AND CHOOSE WHICH ONE TO ANSWER THE NEW YORK CITY POST OFFICE WHICH BEGAN ITS OPERATION SANTA CLAUS MORE THAN 60 YEARS AGO IS THE LARGEST EXPECTING SOME 50000 LETTERS THIS YEAR LOCAL POSTMASTERS ARE ALLOWED TO HANDLE SANTA'S LETTERS AS THEY SEE FIT AND THROUGHOUT THE COUNTRY INDIVIDUALS BUSINESSES AND POSTAL WORKERS HAVE BECOME THESE CHILDREN'S REAL SANTAS IT'S SAD THAT ONLY ONCE DURING THE YEAR THIS KIND OF GENEROSITY IS SHOWN SAID CORLISS WHITE AN ATLANTA POSTAL OFFICIAL MS WHITE RECALLED THAT ONE MAN AFTER READING THE LETTER OF A NINEYEAROLD NAMED RONALD ANONYMOUSLY GAVE HIM A GIFT CERTIFICATE TO PEARL VISION TO BUY EYEGLASSES HIS MOTHER COULDN'T AFFORD AND A 350 GIFT CERTIFICATE TO A CLOTHING STORE IN EAST LOS ANGELES PAUL ACOSTA SAID HIS WORLD AND THAT OF HIS FIVEYEAROLD BROTHER WOULD BE A BETTER PLACE IF THE REFRIGERATOR WERE FULL MORE OFTEN HIS GRANDMOTHER ELIZABETH RAMIREZ EXPLAINED THAT HER DAUGHTER RECEIVES 600 MONTHLY IN PUBLIC ASSISTANCE OF WHICH 495 PAYS RENT REACHED BY PHONE PAUL SHYLY CONFIDED I DIDN'T EVEN ASK FOR ANYTHING THIS YEAR EXCEPT FOR MONEYWISE FOR FOOD HOW MUCH MONEY WAS PAUL HOPING SANTA WOULD SEND THE BOY WAS SILENT FOR A MOMENT UM 50 OR 100 A MONTH THAT WOULD HELP US A LOT HE SAID 9312210078 931221 TRAVEL FIRSTCLASS CABINS ARE SHRINKING ON A GROWING NUMBER OF JETS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL FIRSTCLASS AIRPLANE CABINS ARE SHRINKING SOMETIMES TO THE VANISHING POINT AMR CORP'S AMERICAN AIRLINES IS DROPPING FIRSTCLASS SERVICE ON THREE ROUTES NEW YORK TO MANCHESTER CHICAGO TO GLASGOW AND RALEIGH/DURHAM TO PARIS IN THE LATEST EXAMPLE OF THE TREND CONTINENTAL AIRLINES REPLACED FIRSTCLASS CABINS ON ALL EUROPEAN FLIGHTS LAST YEAR WITH AN EXPANDED BUSINESS CABIN CALLED BUSINESSFIRST NORTHWEST AIRLINES IS ALSO IN THE PROCESS OF SCRAPPING FIRSTCLASS SERVICE ON SOME OF ITS DC10S USED ON TRANSATLANTIC FLIGHTS IT WILL OFFER MORE SEATS IN BUSINESS CLASS AND ECONOMY CLASS INSTEAD THE DEMAND FOR FIRSTCLASS TRAVEL IS FLAT A NORTHWEST SPOKESMAN SAYS NORTHWEST A UNIT OF WINGS HOLDINGS INC MAY ALSO MOVE TO A TWOCLASS SERVICE APPROACH ON ITS TRANSPACIFIC FLIGHTS THE REDUCTION IN FIRST CLASS IS PRIMARILY OCCURRING ON INTERNATIONAL FLIGHTS WHERE FIRSTCLASS TICKETS ARE TOO EXPENSIVE FOR MANY BUSINESS TRAVELERS AND WHERE FIRSTCLASS SEATS ARE INCREASINGLY FILLED BY PASSENGERS ON FREQUENTFLIER UPGRADES SMALL WONDER THE FARE GAP BETWEEN FIRST AND OTHER CLASSES HAS WIDENED IN RECENT YEARS AS AIRLINES HAVE TRIED TO MAXIMIZE REVENUE FROM THEIR RICHEST CUSTOMERS BUSINESS TRAVELERS WHILE DISCOUNTING FARES FOR LEISURE CUSTOMERS AN EXAMPLE OF THE PRICE DISPARITY A TRANS WORLD AIRLINES RESTRICTED ADVANCEPURCHASE TICKET FROM ST LOUIS TO LONDON IN COACH COSTS 478 WHILE A FIRSTCLASS ROUNDTRIP TICKET COSTS 5966 FOR FIRSTCLASS THEY SHOULD GIVE YOU YOUR OWN CABIN ATTENDANT SAYS DON LAMPERT A ST LOUIS TRAVEL AGENT EUROPEAN CARRIERS ALSO APPEAR TO BE REDUCING FIRST CLASS SECTIONS KLM ROYAL DUTCH AIRLINES IS ELIMINATING ITS EXPENSIVE FIRSTCLASS SERVICE ON BOEING 747 JUMBO JETLINER FLIGHTS AND EXPANDING BY 10 THE NUMBER OF SEATS IN THE ECONOMYCLASS SECTION THE NUMBER OF FIRSTCLASS SEATS VARIES BY AIRCRAFT BUT WIDEBODY PLANES HAVE UP TO 34 AS FIRSTCLASS ACCOMMODATIONS DIMINISH WELLHEELED FLIERS ACCUSTOMED TO SPECIAL PAMPERING MAY MISS THE LITTLE LUXURIES OF PRIME SERVICE AMERICAN'S CUTBACK ON ITS FIRSTCLASS ROUTES MEANS THOSE TOP TRAVELERS WHO NOW FLY BUSINESS CLASS INSTEAD WILL RECEIVE REDUCED MEAL SERVICE AND A LESS GENEROUS AMENITY KIT BUT AN AMERICAN SPOKESMAN SAYS ELIMINATING FIRSTCLASS SERVICE ON THOSE ROUTES WILL BETTER MEET DEMAND IN THOSE MARKETS SOME OBSERVERS BELIEVE THAT FIRSTCLASS IS A LUXURY AIRLINES CAN NO LONGER AFFORD AND WILL EVENTUALLY GO THE WAY OF THE DINOSAUR IT'S A SYMBOLIC REPRESENTATION OF WHAT AN AIRLINE CAN DO IN TERMS OF SERVICE DELIVERY BUT IT'S NO LONGER ECONOMICALLY FEASIBLE SAYS JAMES O'DONNELL AN AIRLINE CONSULTANT IN GALVESTON TEXAS BECAUSE OF INDUSTRYWIDE FINANCIAL PROBLEMS HE SAYS CARRIERS THAT COULD IN THE PAST AFFORD TO FLY WITH EMPTY FIRSTCLASS CABINS CAN NO LONGER AFFORD TO DO SO IN SOME WAYS THE AIRLINES MAY BE ACCELERATING THE DEMISE OF THEIR GOLDPLATED PRODUCT BY IMPROVING SERVICE ELSEWHERE IN THE CABIN TWA FOR EXAMPLE ROLLED OUT ITS COMFORT CLASS COACH SEATING THIS YEAR WITH EXPANDED LEG ROOM SAYS LYNNE W PHARR SENIOR VICE PRESIDENT OF SALES FOR CARAVELLE TRAVEL MANAGEMENT INC A CHICAGOAREA TRAVEL AGENCY EVEN THOUGH AIRLINES ADVERTISE ENHANCED FIRSTCLASS SERVICE I DON'T THINK THERE'S AN ENORMOUS AMOUNT OF DIFFERENCE WITH OTHER CLASSES OF SERVICE 9312210077 931221 BUSINESS BRIEF AMTECH CORP RIVAL WINS 40 MILLION JOB FOR TOLLCOLLECTION SYSTEM AMTECH CORP DALLAS SAID IT LOST TO A COMPETITOR A THREEYEAR CONTRACT VALUED AT NEARLY 40 MILLION TO PROVIDE A TOLLCOLLECTION AND ACCOUNTING SYSTEM FOR THE CALIFORNIA DEPARTMENT OF TRANSPORTATION THE COMPANY WHICH MAKES AUTOMATIC VEHICLE AND EQUIPMENT IDENTIFICATION SYSTEMS SAID THE AGENCY INTENDS TO AWARD THE CONTRACT TO KIEWIT NETWORK TECHNOLOGIES A UNIT OF OMAHA NEBBASED PETER KIEWIT SONS INC A SPOKESWOMAN FOR THE STATE AGENCY SAID AMTECH'S PROPOSAL DIDN'T MEET ALL OF THE PROJECT'S SPECIFICATIONS AMTECH'S STOCK SUFFERED SOME WILD SWINGS LAST SUMMER ON SPECULATION ABOUT POTENTIAL CONTRACTS THE AWARD TO A COMPETITOR PUTS A SLIGHT DENT IN ITS EFFORT TO GARNER MORE TOLLCOLLECTION BUSINESS IN NASDAQ STOCK MARKET TRADING AMTECH FELL 150 OR 5 TO 2650 A SHARE BUT THE COMPANY SAID IT STILL HAS A CHANCE TO BID ON FUTURE CALIFORNIA PROJECTS AMTECH IS ALSO AWAITING WORD ABOUT ANOTHER TOLLCOLLECTIONSYSTEM CONTRACT TO BE AWARDED BY AN INTERAGENCY GROUP OF TOLL AUTHORITIES IN THREE NORTHEAST STATES A DECISION ON THAT CONTRACT VALUED BY SOME ANALYSTS AS HIGH AS 100 MILLION OVER SEVERAL YEARS IS EXPECTED BY EARLY 1994 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 9312210076 931221 MARKETING & MEDIA GTE ASKS COURT TO STAY FCC RULING ON CABLE TV STAMFORD CONN GTE CORP SAID IT ASKED A FEDERAL APPEALS COURT TO STAY A FEDERAL COMMUNICATIONS COMMISSION ORDER THAT WOULD END ITS EXPERIMENTAL CABLETELEVISION OPERATIONS IN CERRITOS CALIF GTE FILED THE REQUEST WITH THE NINTH CIRCUIT US COURT OF APPEALS IN SAN FRANCISCO THE FCC RECENTLY DENIED GTE'S REQUEST FOR A SIMILAR STAY OF THE ORDER PENDING AN APPEAL THE TELECOMMUNICATIONS COMPANY HAS BEEN TESTING ADVANCED VIDEO SERVICES IN CERRITOS UNDER A FIVEYEAR FCC WAIVER GRANTED IN JUNE 1989 BUT THE FCC RESCINDED THE WAIVER EARLIER THIS YEAR AFTER FINDING AN UNNECESSARY AFFILIATION BETWEEN GTE AND THE LOCAL CABLE COMPANY GTE CONSIDERS ITS CERRITOS PROJECT A CRUCIAL ASPECT OF THE COMPANY'S EFFORTS TO DEVELOP VARIOUS TECHNOLOGIES SUCH AS INTERACTIVE VIDEO SERVICES THE COMPANY IS REQUIRED TO FILE DOCUMENTS BY JAN 10 EXPLAINING HOW IT INTENDS TO COMPLY WITH THE FCC RESCISSION ORDER IF GRANTED THE LATEST STAY REQUEST WOULD ALLOW GTE TO CONTINUE OPERATING ITS CABLE FACILITY IN CERRITOS UNTIL THE COURT OF APPEALS RULES ON A GTE PETITION CHALLENGING ON CONSTITUTIONAL GROUNDS A GOVERNMENT REGULATION PREVENTING THE COMPANY FROM OFFERING VIDEO SERVICES TO ITS TELEPHONE CUSTOMERS 9312210075 931221 BUSINESS BRIEF NORTHERN TRUST CORP COMPANY AGREES TO PURCHASE BEACH ONE FINANCIAL SERVICES NORTHERN TRUST CORP CHICAGO SAID IT AGREED TO ACQUIRE BEACH ONE FINANCIAL SERVICES INC FOR 562 MILLION IN COMMON STOCK CLOSELY HELD BEACH ONE IS THE PARENT OF BEACH BANK OF VERO BEACH FLA NET INCOME LAST YEAR TOTALED 31 MILLION AT BEACH ONE THE HOLDING COMPANY HAS 200 MILLION IN BANK ASSETS BEACH ONE'S STOCKHOLDER EQUITY STANDS AT 225 MILLION SUGGESTING THAT NORTHERN IS PAYING A PRICE ABOUT 25 TIMES BOOK VALUE THE ACQUISITION IS CONSISTENT WITH NORTHERN'S STRATEGY OF CONTINUED EXPANSION OF ITS TRUST AND BANKING SERVICES TO THE FLORIDA MARKET NORTHERN TRUST SAID NORTHERN EXPECTS THE TRANSACTION TO CLOSE IN THE 1994 SECOND QUARTER ON THE NASDAQ STOCK MARKET YESTERDAY NORTHERN TRUST SHARES CLOSED UNCHANGED AT 3975 UNCHANGED 9312210074 931221 INTERNATIONAL YEN'S DECLINE AGAINST THE DOLLAR BRINGS SOME RELIEF TO JAPANESE MANUFACTURERS BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S HARDPRESSED MANUFACTURERS ARE GETTING SOME WELCOME RELIEF FROM THE YEN'S RECENT RETREAT AGAINST THE DOLLAR THE YEN CLOSED AT 11027 TO THE DOLLAR IN TOKYO TRADING MONDAY 043 YEN WEAKER THAN FRIDAY'S CLOSE AND THE FIRST FINISH AT THE 110 LEVEL SINCE JUNE IN LATE NEW YORK TRADING YESTERDAY THE YEN CLOSED AT 11065 TO THE DOLLAR COMPARED WITH 11018 LATE FRIDAY THE 110 LEVEL IS CRITICAL FOR JAPANESE EXPORTERS IN A GOVERNMENT SURVEY EARLIER THIS YEAR JUST 21 OF 527 COMPANIES SAID THEY COULD MAKE MONEY ON EXPORTS IF THE YEN GREW STRONGER THAN 110 TO THE DOLLAR A STRONG YEN MAKES JAPANESEMADE GOODS MORE EXPENSIVE ON WORLD MARKETS IN MIDAUGUST JAPANESE COMPANIES NEARED PANIC WHEN THE YEN NEARED PARITY WITH A PENNY IN ANOTHER POTENTIAL BRIGHT SPOT FOR THE ECONOMY THE ECONOMIC PLANNING AGENCY REPORTED MONDAY THAT JAPAN'S HOUSEHOLD SPENDING ROSE 04 IN OCTOBER THE FIRST RISE IN SIX MONTHS A REBOUND IN CONSUMER SPENDING WHICH CONSTITUTES THE SINGLE BIGGEST COMPONENT OF JAPAN'S GROSS DOMESTIC PRODUCT IS ESSENTIAL TO RETURNING THE ECONOMY TO HEALTH ANALYSTS CAUTION HOWEVER THAT IT IS TOO SOON TO PREDICT A SUSTAINED PICKUP IN SPENDING BECAUSE JAPAN'S OVERSTAFFED COMPANIES REMAIN UNDER PRESSURE TO TRIM WAGES AND REDUCE JOBS THE WEAKENING OF THE YEN STANCHES ONE OF THE BIGGEST DRAINS ON MAJOR MANUFACTURERS' EARNINGS AT LEAST TEMPORARILY THE SHIFT IS VERY VERY BENEFICIAL FOR JAPANESE AUTO MAKERS BECAUSE ONE OF THE MAJOR CAUSES FOR THE DECLINE IN EARNINGS HAS BEEN THE SHARP APPRECIATION OF THE YEN SAID ENDA CLARKE AUTO ANALYST AT BARING SECURITIES JAPAN LTD ANY SORT OF RELIEF IS ADVANTAGEOUS THE YEN'S WEAKENING HELPS THE JAPANESE BECAUSE WHEN THE DOLLAR STRENGTHENS THE YEN VALUE OF THEIR DOLLARBASED SALES RISES THAT GAIN IN REVENUE NOT ONLY LIFTS PROFITS BUT ALSO REDUCES THE PRESSURE TO RAISE EXPORT PRICES AND THEREBY COMPROMISE COMPETITIVENESS ONE COMPANY THAT STANDS TO GAIN IS HONDA MOTOR CO WHICH MADE 64 OF ITS SALES OVERSEAS IN THE SIX MONTHS THROUGH SEPT 30 THE YEN'S RISE KNOCKED 65 BILLION YEN 590 MILLION OFF HONDA'S OPERATING PROFIT IN THAT PERIOD WHICH THE COMPANY PARTLY OFFSET BY CUTTING COSTS ANOTHER BENEFICIARY IS SONY CORP WHICH BASES ITS CONSOLIDATED PRETAX EARNINGS FORECAST OF 87 BILLION YEN FOR THE YEAR ENDING MARCH 31 ON A RATE OF 105 YEN TO THE DOLLAR FOR THE SIX MONTHS THROUGH MARCH IF A RATE OF 110 YEN PREVAILS SAYS YUKIO OZAWA SONY'S DEPUTY GENERAL MANAGER OF INVESTOR RELATIONS THERE IS A POSSIBILITY SONY'S PROFIT WILL EXCEED EXPECTATIONS THE YEN'S RETREAT DOESN'T MAKE EXPORTERS' PROBLEMS DISAPPEAR HOWEVER A RATE OF 110 YEN TO THE DOLLAR IS STILL A HIGH VALUE FOR THEM SO I DON'T EXPECT A BIG PICKUP IN EXPORTS SAYS PETER MORGAN ECONOMIST AT MERRILL LYNCH & CO IT STILL GIVES THEM INCENTIVE TO SHIFT PRODUCTION OVERSEAS THE WILD CARD IS HOW FAR THE YEN WILL DEPRECIATE OR IF THE DECLINE WILL CONTINUE AT ALL ECONOMISTS' FORECASTS VARY WIDELY SOME SAY IT'S HEADED BACK TOWARD 100 YEN TO THE DOLLAR OTHERS SAY IT WILL WEAKEN TO AROUND 120 YEN THE DOLLAR HAS BEEN RISING ON EXPECTATIONS THAT US INTEREST RATES WILL INCREASE AND JAPANESE RATES WILL FALL THE INTERESTRATE GAP MAKES DOLLARBASED INVESTMENTS MORE ATTRACTIVE THAN YEN INVESTMENTS RAISING DEMAND FOR DOLLARS AT THE SAME TIME HOWEVER THE MAIN FACTOR BOOSTING THE YEN HAS BEEN JAPAN'S BLOATED TRADE SURPLUS THOUGH IT APPEARS TO BE DECLINING THE SURPLUS IS EXPECTED TO REMAIN LARGE MAKERS OF AUTOS AND ELECTRONICS EQUIPMENT SAY THEY PLAN TO CARRY ON WITH EFFORTS TO INSULATE THEMSELVES FROM HARMFUL CURRENCY SWINGS BY MOVING MORE PRODUCTION OVERSEAS SONY FOR INSTANCE SAYS IT AIMS TO MAKE 50 OF ITS PRODUCTS ABROAD IN THREE YEARS UP FROM 35 AT PRESENT HONDA HAS PLANS TO SHIFT TO FULL LOCAL PRODUCTION OF CIVICS AND ACCORDS SOLD IN THE US THOSE MOVES WILL STAND THE EXPORTERS IN GOOD STEAD IF THEIR SALES REBOUND AND THE YEN RATE STABILIZES JAPANESE EXPORTERS ARE MUCH LEANER NOW THAN A FEW YEARS BACK SAYS CHUCK GOTO AN SG WARBURG ELECTRONICS ANALYST 9312210073 931221 BUSINESS BRIEF PITTSTON CO MINERALS GROUP PLANS CHARGE OF 48 MILLION IN 4TH PERIOD PITTSTON CO STAMFORD CONN SAID THAT ITS PITTSTON MINERALS GROUP UNIT EXPECTS TO INCUR A FOURTHQUARTER AFTERTAX CHARGE OF ABOUT 48 MILLION TO COVER MINE CLOSINGS AND OTHER LIABILITIES THE CHARGE IS EQUIVALENT TO ABOUT 640 A SHARE PRIOR TO THE CHARGE ANALYSTS HAD ESTIMATED EARNINGS OF BETWEEN 39 CENTS AND 55 CENTS A SHARE A SPOKESMAN SAID EARNINGS EXCLUDING THE CHARGE WOULD BE IN THAT RANGE LAST YEAR BEFORE THE SPLIT OF PITTSTON'S COMMON STOCK INTO SEPARATE CLASSES FOR ITS MINERALS GROUP AND SERVICES GROUP THE COMPANY POSTED FOURTHQUARTER NET INCOME OF 156 MILLION OR 42 CENTS A SHARE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PITTSTON MINERAL GROUP SHARES CLOSED AT 2275 UNCHANGED 9312210072 931221 BUSINESS BRIEF HORIZON'S PLAN TO ACQUIRE GREENERY STALLED BY MASSACHUSETTS REGULATORS ALBUQUERQUE NM MASSACHUSETTS REGULATORS DENIED HORIZON HEALTHCARE CORP A LICENSE TO OPERATE SEVEN OF THE 20 REHABILITATION CENTERS OWNED BY GREENERY REHABILITATION GROUP INC WHICH HORIZON HAS AGREED TO ACQUIRE THE MASSACHUSETTS DEPARTMENT OF PUBLIC HEALTH SAID HORIZON IS NEITHER SUITABLE NOR RESPONSIBLE FOR LICENSURE BECAUSE DEFICIENCIES AT NURSING HOMES THE COMPANY OPERATES IN OHIO WERE SO SERIOUS THAT THE HEALTH AND SAFETY OF RESIDENTS WERE JEOPARDIZED A HORIZON SPOKESMAN MICHAEL SEELIGER SAID THE COMPANY WAS VERY VERY SURPRISED BY THE DEPARTMENT'S ACTION HE SAID HORIZON WILL KEEP TRYING TO OBTAIN THE MASSACHUSETTS LICENSE BUT THE DEPARTMENT'S INITIAL DECISION COULD DELAY THE ACQUISITION VALUED AT 97 MILLION BY 60 TO 90 DAYS THE NURSINGHOME OPERATOR HAD EXPECTED TO COMPLETE THE DEAL BY THE END OF THIS MONTH THE FEDERAL TRADE COMMISSION THE US DEPARTMENT OF JUSTICE AND REGULATORS IN NINE OTHER STATES INCLUDING OHIO HAVE ALREADY APPROVED THE PURCHASE IN THE MOST SERIOUS CASE CITED BY MASSACHUSETTS REGULATORS THE OHIO DEPARTMENT OF HEALTH FOUND IN OCTOBER THAT FIVE RESIDENTS WERE PHYSICALLY AND SEXUALLY ABUSED BY OTHER RESIDENTS AT THE EDISON HEALTH CARE CENTER IN MILAN OHIO THE HARM INCLUDED LACERATIONS BROKEN TEETH AND SKIN TEARS ACCORDING TO THE MASSACHUSETTS REGULATORS ANOTHER HORIZONOPERATED FACILITY IN OHIO WAS CITED FOR INAPPROPRIATE USE OF RESTRAINTS AND FOR FAILURE TO INVESTIGATE AND REPORT ACCIDENTS IN 1991 A THIRD OHIO FACILITY WAS CITED FOR FAILING TO ADEQUATELY TREAT SIX RESIDENTS WITH DANGEROUS CONDITIONS IN 1992 THE MASSACHUSETTS OFFICIALS ALSO SAID HORIZON'S APPLICATION FAILED TO DISCLOSE OR MISREPRESENTED INFORMATION ABOUT ENFORCEMENT ACTIONS IN OTHER STATES MR SEELIGER SAID THE PROBLEMS CITED GO BACK A NUMBER OF YEARS AND WERE ALL CORRECTED COMPANY OFFICIALS HOPE TO MEET WITH REGULATORS THIS WEEK HE SAID UNDER THE ACQUISITION AGREEMENT SHAREHOLDERS OF GREENERY BASED IN NEWTON MASS WOULD RECEIVE ONE HORIZON SHARE FOR EVERY FOUR GREENERY SHARES THEY HOLD OR A TOTAL OF 205 MILLION HORIZON SHARES VALUED AT 425 MILLION BASED ON HORIZON'S CLOSING PRICE YESTERDAY HORIZON WOULD ALSO ASSUME 547 MILLION IN GREENERY DEBT IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY HORIZON CLOSED AT 2075 A SHARE UP 125 CENTS AND GREENERY CLOSED AT 4875 A SHARE DOWN 125 CENTS SEPARATELY HORIZON SAID ITS NET INCOME FOR THE FISCAL SECOND QUARTER ENDED NOV 30 ROSE 83 TO ABOUT 35 MILLION OR 25 CENTS A SHARE FROM 19 MILLION OR 16 CENTS A SHARE A YEAR AGO ON FEWER SHARES OUTSTANDING REVENUE INCREASED 50 TO 789 MILLION FROM 527 MILLION BOOSTED BY HORIZON'S ACQUISITION OF TWO FACILITIES IN TEXAS AND ONE IN FLORIDA THE COMPANY ATTRIBUTED THE HIGHER PROFIT TO GROWTH IN ITS HIGHERMARGIN SPECIALTY SERVICES SUCH AS SPECIALTY HOSPITALS INSTITUTIONAL PHARMACIES AND CLINICAL LABORATORIES 9312210071 931221 MONDAY'S MARKETS STOCKS FINISH MIXED DOLLAR PUSHES HIGHER BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES WERE MIXED AS PROFITTAKERS SWOOPED IN AFTER THE MARKET'S STRONG PERFORMANCE FRIDAY BOND PRICES FELL BUT THE DOLLAR PUSHED HIGHER SOME ANALYSTS WERE DISAPPOINTED THAT THE STOCK MARKET FAILED TO SUSTAIN ITS MOMENTUM FROM LAST WEEK THE STOCK MARKET ENDED THE WEEK WITH A BURST OF BUYING RELATED TO THE QUARTERLY EXPIRATION OF OPTIONS AND FUTURES ON FRIDAY THE DOW JONES INDUSTRIALS SHOT UP 25 POINTS AND ADVANCING ISSUES SWAMPED DECLINERS BY MORE THAN 2 TO 1 MONDAY WAS A REVERSAL OF FRIDAY'S STRONG GAINS ACROSS THE BOARD SAID LARRY RICE CHIEF MARKET STRATEGIST AT JOSEPHTHAL LYON & ROSS WE'RE IN AN OVERVALUED MARKET THAT LIMITS GAINS TRANSPORTATION STOCKS SANK AS OIL PRICES FOR JANUARY DELIVERY REBOUNDED A BIT AIRLINES IN PARTICULAR SUFFERED FROM THE PROSPECT OF HIGHER OIL PRICES WITH USAIR GROUP FALLING 5/8 TO 12 1/2 AND AMR THE PARENT OF AMERICAN AIRLINES DECLINING 7/8 TO 66 1/2 THE DOW JONES TRANSPORTATION AVERAGE SLID 537 TO 174880 MR RICE EXPECTS THE IMPROVING ECONOMY TO DRIVE BOTH INFLATION AND INTEREST RATES HIGHER BUT THE KEY TO THE STOCK MARKET'S PERFORMANCE IS WHETHER STOCK PRICES CAN WITHSTAND ANY FURTHER UPTICKS IN RATES HE SAID IT USUALLY TAKES SEVERAL INCREASES IN RATES BEFORE A BEAR MARKET SETS IN MR RICE SAID I JUST WONDER IF WE'RE GOING TO GET THOSE FEW INCREASES FIRST I THINK WE'LL SEE A VERY NERVOUS MARKET AT THE FIRST INCREASE IN SHORTTERM INTEREST RATES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX SLIPPED 080 TO 11041 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 249932760 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1125 ISSUES FELL AND 990 ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 1/4 POINT OR MORE THAN 250 FOR EACH 1000 FACE AMOUNT TO YIELD 630 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17130 MARKS AND 11065 YEN COMPARED WITH 17090 MARKS AND 11018 YEN FRIDAY 9312210070 931221 BUSINESS BRIEF EPITOPE INC FDA SENDS WARNING NOTICE ALLEGING UNLAWFUL DISCLOSURE EPITOPE INC BEAVERTON ORE SAID THE US FOOD AND DRUG ADMINISTRATION ALLEGED IN A LETTER THAT THE COMPANY VIOLATED FEDERAL REGULATIONS DURING THE DEVELOPMENT OF AN ORAL SPECIMENCOLLECTION DEVICE FOR USE IN DETECTING THE AIDS VIRUS EPITOPE SAID IT WILL RESPOND TO THE LETTER SHORTLY AND THAT THE LETTER ISN'T EXPECTED TO SLOW OR ALTER FDA REVIEW OF THE COMPANY'S APPLICATION FOR PREMARKET APPROVAL OF THE SPECIMENCOLLECTION DEVICE WHICH IS CALLED ORASURE AS PART OF THAT REVIEW AN FDA TEAM IS INPECTING EPITOPE'S FACILITY IN BEAVERTON AND THAT OF A CONTRACT MANUFACTURING COMPANY THAT EPITOPE PLANS TO USE IN A WARNING LETTER ISSUED LAST WEEK THE FDA CITED FOUR CASES IN WHICH THE COMPANY ALLEGEDLY VIOLATED THE FEDERAL FOOD DRUG AND COSMETIC ACT BY DISCLOSING INFORMATION ABOUT ORASURE'S EXPECTED PERFORMANCE OR PRICING THE LAW IS DESIGNED TO PREVENT COMPANIES FROM PROMOTING PRODUCTS BEFORE THEY RECEIVE FDA APPROVAL FOR SALE EPITOPE'S SHARES DECLINED 375 CENTS TO 2150 ON THE AMERICAN STOCK EXCHANGE 9312210069 931221 QVC RAISES ITS OFFER FOR PARAMOUNT TOPPING VIACOM'S BID IN LATEST ROUND BY JOHNNIE L ROBERTS AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK QVC NETWORK INC RAISED ITS BID FOR PARAMOUNT COMMUNICATIONS INC TOPPING RIVAL VIACOM INC IN WHAT WAS BILLED AS A FINAL ROUND OF BIDDING IN THE THREEMONTH TAKEOVER BATTLE IN A STATEMENT ISSUED SHORTLY AFTER 10 PM YESTERDAY QVC SAID IT INCREASED ITS BID BY 2 A SHARE TO 92 IN CASH FOR 51 OF PARAMOUNT SHARES AND WAS ADVISED BY PARAMOUNT THAT IT IS THE HIGH BIDDER LAWYERS FOR PARAMOUNT AND QVC WERE MEETING TO DRAFT AN ACQUISITION AGREEMENT IN ADVANCE OF A PARAMOUNT BOARD MEETING SCHEDULED FOR NOON TODAY HOWEVER PEOPLE CLOSE TO THE SITUATION STRESSED THAT YESTERDAY'S BIDDING REPRESENTED ONLY THE BEGINNING OF THE END OF THE LONG STRUGGLE NOTING THAT VIACOM COULD COME BACK WITH A HIGHER BID INDEED VIACOM CHAIRMAN SUMNER REDSTONE WAS REPORTED TO HAVE ASKED PARAMOUNT'S ADVISERS FOR MORE TIME TO RAISE HIS OFFER ADVISERS TO VIACOM AND PARAMOUNT WERE PLANNING TO MEET TODAY BEFORE THE BOARD MEETING AND IN ITS NEW OFFER QVC ASKED THE PARAMOUNT BOARD FOR THE CHANCE TO NEGOTIATE FURTHER IN THE EVENT THAT VIACOM TOPS THE LATEST QVC OFFER QVC DIDN'T ATTEMPT TO PUT A TOTAL PRICE TAG ON ITS NEW OFFER ITS PREVIOUS BID WAS VALUED YESTERDAY AT 101 BILLION OR 8422 A SHARE COMPARED WITH 96 BILLION OR 7964 A SHARE BID BY VIACOM IN ADDITION TO THE HIGHER CASH AMOUNT QVC RAISED THE DIVIDEND RATE ON A PREFERRED STOCK TO BE OFFERED FOR THE REMAINDER TO 6 FROM 5 ADVISERS TO PARAMOUNT AND QVC WERE TRYING TO NEGOTIATE AN ACQUISITION AGREEMENT LAST NIGHT THAT COULD BE APPROVED BY THE PARAMOUNT BOARD TODAY IF THAT HAPPENS IT WOULD MARK A DRAMATIC TURNAROUND IN THE BATTLE WHICH SAW PARAMOUNT CHAIRMAN MARTIN DAVIS CONSISTENTLY RESIST BIDS BY QVC CHAIRMAN BARRY DILLER UNTIL THE ACTIONS OF PARAMOUNT'S BOARD WERE OVERRULED 10 DAYS AGO BY A DELAWARE COURT AFTER A THREEMONTHLONG TAKEOVER BATTLE PARAMOUNT DIRECTORS LAST WEEK PUT THE COMPANY UP FOR AUCTION FOLLOWING THE DELAWARE SUPREME COURT'S DECISION THAT THEY HAD ACTED IMPROPERLY IN PURSUING A FRIENDLY AGREEMENT WITH VIACOM AND SPURNING QVC'S OFFERS QVC SAID LATE YESTERDAY THAT IT WOULD ANNOUNCE ITS BID BUT THEN SAID THAT THE SECURITIES AND EXCHANGE COMMISSION HAD BLOCKED THE COMPANY'S PLAN TO ISSUE A NEWS RELEASE QVC SAID IT BELIEVED EARLIER THAT IT HAD SEC CLEARANCE TO ANNOUNCE ITS BID QVC SAID IT BELIEVED THAT SECURITIES LAWS REQUIRED IT TO ANNOUNCE THE SEALED BID IT SUBMITTED YESTERDAY BECAUSE THAT BID REPRESENTED A REVISION OF ITS TENDER OFFER VIACOM DID NOT DISCLOSE ITS BID AND DECLINED TO COMMENT ON WHETHER IT WOULD DISCLOSE IT PEOPLE IN THE QVC CAMP SAID THAT THE 2ASHARE INCREASE IN THE TENDER OFFER REPRESENTED ROUGHLY THE 100 MILLION IT HAD BUDGETED FOR THE BREAKUP FEE THAT VIACOM WAS TO HAVE COLLECTED UNDER ITS FRIENDLY AGREEMENT WITH PARAMOUNT UNDER THAT AGREEMENT VIACOM WOULD HAVE COLLECTED THE FEE AS THE LOSER OF THE CONTEST BUT THE PACT WAS THROWN OUT BY THE DELAWARE COURTS AFTER QVC CHALLENGED IT ONE PERSON CLOSE TO THE SITUATION SAID THEY TOOK THEIR VICTORY PROCEEDS FROM THE COURTS AND GAVE IT TO SHAREHOLDERS ONE TRADER ESTIMATED THE VALUE OF THE NEW SECURITIES IN THE NONCASH PORTION OF QVC'S NEW BID AT ONLY 2 TO 3 A SHARE MORE THAN THE PREVIOUS BID THAT WOULD GIVE THE NEW BID A TOTAL VALUE OF ABOUT 86 A SHARE OR 103 BILLION A MODEST INCREASE THAT ALSO SUGGESTS THAT THIS FINAL ROUND OF BIDDING COULD EASILY GO HIGHER IF VIACOM RAISES ITS BID PEOPLE CLOSE TO THE DEVELOPMENT SAID THAT BELLSOUTH CORP ONE OF QVC'S TWO LARGEST PARTNERS AND ITS ADVISER BRUCE WASSERSTEIN OF WASSERSTEIN PERELLA PUSHED FOR A MUCH HIGHER QVC BID AND THE ATLANTABASED PHONE COMPANY WAS PREPARED TO INVEST HUNDREDS OF MILLIONS OF DOLLARS MORE IN QVC TO FINANCE A MORE AGGRESSIVE MOVE THESE PEOPLE SAID ANOTHER PARTNER COMCAST CORP WAS SAID TO BE FLEXIBLE ON THE ISSUE WE WERE UNDER INTENSE PRESSURE FROM THE BELLSOUTH TEAM SAID ONE PERSON FAMILIAR WITH THE SITUATION BUT BARRY DILLER DECIDED HE DIDN'T NEED OR WANT IT THROUGHOUT THE EARLY EVENING TRADERS SAID THEY HAD HEARD THAT VIACOM'S MR REDSTONE WOULD MAKE AN ALLCASH BID OR SOME OTHER DRAMATIC MOVE IN THE COMING DAYS BOTH QVC AND VIACOM ARE FREE TO REVISE THEIR BIDS AFTER BOTH BEGIN THEIR TENDER OFFERS 9312210068 931221 WHO'S NEWS SAPIENS INTERNATIONAL CORP SAPIENS INTERNATIONAL CORP CARY NC DAVID BURSIEK 56 YEARS OLD PRESIDENT OF THE COMPANY'S US SUBSIDIARIES WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS SOFTWARE MAKER EFFECTIVE APRIL 1994 HE SUCCEEDS SHAUL SHANI 39 WHO REMAINS CHAIRMAN 9312210067 931221 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN THE OUTLOOK FOR PAY NEXT YEAR IS IFFY THANKS IN PART TO WASHINGTON WITH HEALTHCARE REFORM ON THE HORIZON 44 OF COMPANIES ARE CONSIDERING SMALLER PAY INCREASES TO HELP OFFSET WHAT THEY THINK WILL BE HIGHER BENEFIT COSTS SAYS ERNST & YOUNG WHICH SURVEYED 526 EXECUTIVES TRADITIONAL INCREASES WILL CONTINUE THEIR DOWNWARD TREND AS MORE COMPANIES USE PAYFORPERFORMANCE PLANS COOPERS & LYBRAND'S JANET FUERSICH SAYS DEMAND FOR SENIOR TALENT IN SOME JOBS MAY RATCHET UP COMPENSATION SAYS HOWARD BRATCHES AT THORNDIKE DELAND ASSOCIATES IN NEW YORK HIS HOT AREAS SENIOR CONSUMERGOODS MARKETERS DIRECTMAIL EXECUTIVES CREDITCARD MARKETING SPECIALISTS DATABASE EXPERTS AND MANUFACTURING CUSTOMERSERVICE PEOPLE CLEVELAND EXECUTIVE RECRUITER JEFFERY CHRISTIAN SAYS SALARIES WILL JUMP AS MUCH AS 20 FOR SOME MANAGERS IN SOFTWARE AND INTERACTIVEMEDIA TELECOMMUNICATIONS SAFETY MESSAGES AREN'T GETTING THROUGH AT WORK SITES NEARLY HALF THE US WORK FORCE CAN'T UNDERSTAND TRAINING MATERIALS WARNING SIGNS AND CHEMICAL LABELS DESIGNED TO PREVENT WORKPLACE INJURY SAY ELIZABETH SZUDY AND MICHELE GONZALEZ ARROYO OF THE UNIVERSITY OF CALIFORNIA AT BERKELEY MOST OF THE WORKERS INTERVIEWED FOR THE STUDY WERE NATIVE ENGLISH SPEAKERS WHO HAD BEEN THROUGH US SCHOOLS AND MANY HAD HIGHSCHOOL OR COLLEGE DEGREES MOST SAFETY MATERIALS ARE PREPARED BY GOVERNMENT UNIONS AND PRIVATE COMPANIES AND REQUIRE COLLEGELEVEL READING ABILITIES THE STUDY FOUND ONLY 16 ARE SUITABLE FOR EIGHTHGRADE OR LOWER READING SKILLS THE REPORT'S SUGGESTION PRESENT WORKERS WITH MORE VISUALLY APPEALING MATERIALS AND PARTICIPATORY TRAINING COMPANIES STEP UP EFFORTS TO PREVENT DRUNKEN DRIVING DURING THE HOLIDAYS BEFORE HOLDING ITS REGIONAL CHRISTMAS PARTY CONSUMERS POWER A MICHIGAN UTILITY BRINGS IN A REPRESENTATIVE FROM MOTHERS AGAINST DRUNK DRIVING TO SHOW EMPLOYEES A VIDEOTAPE ON DRUNKEN DRIVING NISSAN NORTH AMERICA ENCOURAGES WORKERS TO BACK MADD BY TYING RED RIBBONS ON THEIR CARS AS A REMINDER NOT TO DRINK AND DRIVE DURING THE HOLIDAY SEASON JOHN HANCOCK FINANCIAL SERVICES PLACES FLYERS ON EMPLOYEES' CARS OUTLINING DRIVING AND SAFETY TIPS THE NAPA VALLEY WINE TRAIN OFFERS FREE SHUTTLE SERVICE TO LOCAL HOTELS ON NEW YEAR'S EVE BUT SOME COMPANIES DON'T EVEN GIVE THE MATTER A THOUGHT WE ASSUME OUR EMPLOYEES ARE ADULTS SAYS A SPOKESWOMAN FOR NIKE AAA OF MICHIGAN THE STATE'S LARGEST AUTO INSURER SPONSORS AN ANNUAL ZERO PROOF MIX OFF CONTEST WITH CASH PRIZES FOR BEST NONALCOHOLIC DRINK CREATIONS MORE CHEAP LABOR IS ON THE WAY AS THE NUMBER OF WORKINGAGE PEOPLE WORLDWIDE JUMPS TO FIVE BILLION FROM THREE BILLION BY 2025 90 OF THE INCREASE WILL OCCUR IN DEVELOPING COUNTRIES SAY COLUMBIA UNIVERSITY'S DAVID BLOOM AND ADI BRENDER IN A POPULATION REFERENCE BUREAU REPORT THE ECONOMISTS PREDICT DEVELOPING COUNTRIES' SHARE OF THE WORLD LABOR FORCE WILL RISE TO MORE THAN 80 FROM 75 IT'S SLASH AND BURN TIME AT HOSPITALS MODERN HEALTHCARE MAGAZINE WILL REPORT IN ITS COMING ISSUE THAT 27 OF THE HOSPITALS IT TALKED WITH THIS YEAR ARE CUTTING THEIR WORK FORCES SOME BY AS MUCH AS 24 CHURCHAFFILIATED AND INVESTOROWNED FACILITIES ARE THE TOUGHEST CUTTERS SUPPORT STAFF AND MIDDLE MANAGERS ARE PRIMARY TARGETS ONLY 7 OF THE HOSPITALS PLAN TO ADD STAFF WELCOME BACK BETWEEN A THIRD AND A HALF OF THE 14 MILLION MANAGERS LAID OFF OVER THE PAST FIVE YEARS WILL BE REHIRED BY THEIR EMPLOYERS PROJECTS CRAIG DREILINGER HEAD OF DREIFORD GROUP A BETHESDA MD CONSULTING FIRM MANAGERS OFTEN COME BACK AS CONSULTANTS FREQUENTLY WITH HIGHER PAY THAT CAN CAUSE RESENTMENT HE SAYS TURNOVER AT THE TOP OF UNIONS MAY ACCELERATE AFTER THE NEW YEAR UNITED STEELWORKERS PRESIDENT LYNN WILLIAMS CONSIDERED AMONG THE MOST PROGRESSIVE OF THE BIGUNION HEADS ALREADY HAS SAID HE WILL DEPART IN MARCH WITH GEORGE BECKER WAITING IN THE WINGS RUMORS SWIRL THAT WILLIAM WYNN PRESIDENT OF THE UNITED FOOD AND COMMERCIAL WORKERS WILL QUIT AROUND THE TIME OF THE FEBRUARY AFLCIO EXECUTIVE COUNCIL MEETING DOUG DORITY THE UNION'S ORGANIZING DIRECTOR WOULD BE THE LIKELY SUCCESSOR WITH THE CONTENTIOUS COAL STRIKE BEHIND IT THE UNITED MINE WORKERS IS WEIGHING ITS FUTURE OFFICIALS THERE SAY UNION OBSERVERS SEE SEVERAL MERGER POSSIBILITIES WHICH COULD HELP UMW PRESIDENT RICHARD TRUMKA JACK SHEINKMAN AND JAY MAZUR HEADS OF THE CLOTHING AND TEXTILE WORKERS AND THE LADIES' GARMENT WORKERS UNIONS WOULD FIGHT FOR THE TOP SPOT IN ANY MERGER OF THOSE UNIONS OBSERVERS SAY CHANGES COULD UPEND THE AFLCIO EXECUTIVE COUNCIL WHICH SAW FIVE BOARD MEMBERS LOSE AT THEIR UNIONS BETWEEN 1990 AND THIS YEAR THE CHECKOFF BEST OFFICE CHRISTMAS GIFT OR IS IT THE WORST MAJOR DEPARTMENT STORES OFFER THE YES MAN A FOURINCHHIGH CORPORATE DWEEB WITH AN OBNOXIOUS SMILE WHO INTONES SUCH PHRASES AS WHATEVER YOU SAY OR I COULDN'T HAVE SAID IT BETTER MYSELF MICA ACCOUNTING SOFTWARE PORT ARTHUR TEXAS OFFERS ITS 20 EMPLOYEES A 1000 REWARD TO STOP SMOKING IN 1994 THE LABOR DEPARTMENT PLANS FORMAL TRAINING ON AIDS IN THE WORKPLACE 9312210066 931221 INTERNATIONAL US MEXICAN FIRMS ANNOUNCE WAVE OF JOINT VENTURES IN THE WAKE OF NAFTA BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY US AND MEXICAN COMPANIES ARE ANNOUNCING A WAVE OF JOINT VENTURES IN MEXICO IN THEIR FIRST STEPS TOWARD TAKING ADVANTAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT DOZENS OF VENTURES HAVE BEEN ANNOUNCED IN THE MONTH SINCE NAFTA WAS APPROVED BY THE US CONGRESS INCLUDING SUCH US NAMES AS TRANS UNION CORP UNDERWRITERS LABORATORIES INC WESTERN UNION FINANCIAL SERVICES INC AND GTE CORP AND IT APPEARS THAT THOSE ARE JUST THE BEGINNING I'VE ACTUALLY BEEN SURPRISED THAT THERE HAVEN'T BEEN MORE ANNOUNCED SAYS MIGUEL JAUREGUI A LAWYER HERE WHO SPECIALIZES IN FOREIGN INVESTMENT HE SAYS HE THINKS LOTS OF OTHER COMPANIES ARE PREPARED TO UNVEIL THEIR PLANS BUT ARE WAITING BECAUSE THEY'VE GONE INTO HOLIDAY MODE AFTER THE FIRST OF THE YEAR WE'LL SEE A LOT MORE ANNOUNCEMENTS AND THEY'LL PROBABLY GO ON FOR SIX MONTHS HE SAYS THE VENTURES ARE A WELCOME SIGN FOR THE MEXICAN ECONOMY WHICH HAS BEEN STRUGGLING ALL YEAR AND ACTUALLY CONTRACTED IN THE THIRD QUARTER THE BIGGEST PROBLEM HAS BEEN THAT INTEREST RATES ARE SEVERAL TIMES AS HIGH AS THOSE IN THE US THE GOVERNMENT HAS BEEN RELUCTANT TO PUSH THOSE RATES DOWN TOO FAST BECAUSE HIGH RATES HERE HELP ATTRACT THE HUGE AMOUNTS OF FOREIGN CAPITAL THAT ARE NEEDED TO FINANCE THE ECONOMY'S RESTRUCTURING BUT THE JOINT VENTURES WILL PROVIDE A STEADY FLOW OF FOREIGN CAPITAL REGARDLESS OF INTEREST FEES GIVING THE GOVERNMENT A LITTLE MORE ROOM TO DRIVE THEM DOWN NORA LUSTIG A SENIOR FELLOW AT THE BROOKINGS INSTITUTION SAYS THE VENTURES SHOULD ALSO REASSURE INVESTORS ABOUT THE STABILITY OF THE ECONOMY COMPARED WITH THE MONEY MEXICO HAS DRAWN IN THE PAST MAINLY ATTRACTED TO TREASURY BILLS AND THE STOCK MARKET MONEY INVESTED IN PRODUCTION AND OTHER JOINT VENTURES IS LESS VOLATILE MORE COMMITTED TO STAYING IN THE COUNTRY SHE SAYS MS LUSTIG ALSO SAYS THE VENTURES COULD INCREASE EFFICIENCY IN THE MEXICAN ECONOMY BY BRINGING IN FOREIGN TECHNOLOGY AND COMPETITION DOWN THE ROAD SHE SAYS THE VENTURES COULD EVEN LEAD TO AN IMPROVEMENT IN THE NOTORIOUSLY WEAK MEXICAN SAFETY STANDARDS BECAUSE THE US PARTNERS WILL BE UNDER MORE SCRUTINY ON SAFETY ISSUES THAN MEXICAN COMPANIES TRADITIONALLY HAVE BEEN THE US COMPANIES COMING TO MEXICO SAY THEY ARE DOING SO THROUGH JOINT VENTURES RATHER THAN ON THEIR OWN LARGELY BECAUSE THEY DON'T KNOW THE MARKET WELL YET AND DON'T HAVE THE KIND OF NAMERECOGNITION THEY HAVE IN THE US ROGER M LAVERTY CHIEF EXECUTIVE OFFICER OF SMART & FINAL INC A LOS ANGELESBASED WAREHOUSEGROCERY CHAIN SAYS THE COMPANY DECIDED THAT THE MEXICAN MARKET OFFERED GREAT OPPORTUNITIES FOR OUR CONCEPT BUT WE ALSO THOUGHT THERE WERE SIGNIFICANT DIFFERENCES IN THE MEXICAN MARKET THAT WE WEREN'T FULLY ATTUNED TO PERHAPS MOST IMPORTANT WE THOUGHT THAT THE IMAGE OF AN AMERICAN COMPANY COMING DOWN AND 'SHOWING' THE LOCAL COMPANIES HOW TO DO THINGS WOULDN'T PLAY WELL AS A RESULT SMART & FINAL YESTERDAY LAUNCHED A JOINT VENTURE WITH CENTRAL DETALLISTA SA A REGIONAL GROCERY COMPANY IN MEXICO AND SAID THE COMPANIES WILL JOINTLY OPEN SEVERAL LARGE STORES IN MEXICO IT WOULD HAVE BEEN HARD FOR UNDERWRITERS LABORATORIES OR UL TO GO ABOUT ITS BUSINESS OF CERTIFYING THE SAFETY OF ELECTRICAL PRODUCTS ON ITS OWN IN MEXICO BUT THE COMPANY WHICH LACKS NAME RECOGNITION HERE SHOULD BE ABLE TO TAKE ADVANTAGE OF AN ALLIANCE IT FORMED WITH A PRIVATE MEXICAN CERTIFIER THE ASOCIACION NACIONAL DE NORMALIZACION Y CERTIFICACION DEL SECTOR ELECTRICO SIMILARLY ALMOST NOTHING HAPPENS IN TELECOMMUNICATIONS IN MEXICO EXCEPT THROUGH THE PHONE MONOPOLY TELEFONOS DE MEXICO SA SO GTE RECENTLY FORMED A COMPANY WITH TELMEX THAT WILL LET AIRPLANE PASSENGERS PLACE PHONE CALLS TO PEOPLE ON THE GROUND IN MEXICO TRANS UNION RECENTLY ANNOUNCED AN AGREEMENT WITH THE ASSOCIATION OF MEXICAN BANKS TO FORM A VENTURE THAT WILL PROVIDE ELECTRONIC CREDIT RATINGS FOR MEXICANS FOR THE FIRST TIME SOMETHING THAT WOULD HAVE BEEN IMPOSSIBLE FOR TRANS UNION TO DO BY ITSELF GIVEN THE FRAGMENTED STATE OF CREDIT RECORDS IN MEXICO LIKEWISE WESTERN UNION FORMED AN ALLIANCE WITH ELEKTRA A MEXICAN CHAIN OF ELECTRONICS STORES THE VENTURE GIVES WESTERN UNION AN INSTANT NETWORK OF PLACES WHERE MEXICANS CAN GO TO TAKE ADVANTAGE OF A NEW SERVICE AND WIRE MONEY OR COLLECT WIRED FUNDS NOT EVERY COMPANY OF COURSE DECIDES THAT A JOINT VENTURE IS THE WAY TO GO FORD MOTOR CO FOR INSTANCE RECENTLY ANNOUNCED PLANS ON ITS OWN TO INCREASE ITS OPERATIONS IN MEXICO BUT FORD LIKE OTHER US COMPANIES MANUFACTURING IN MEXICO DOESN'T NEED LOCAL EXPERTISE TO MAKE ITS PRODUCTS AND IS SO WELLESTABLISHED IN MEXICO THAT IT DOESN'T NEED A PARTNER'S HELP TO SELL CARS HERE EITHER 9312210064 931221 DE BEERS CENTENARY POSTS RECORD DIAMOND REVENUE SPECIAL TO THE WALL STREET JOURNAL LONDON DIAMOND SALES OF SWISSBASED DE BEERS CENTENARY AG ROSE 28 TO A RECORD 437 BILLION THIS YEAR THE COMPANY SAID HOWEVER SECONDHALF REVENUE OF 182 BILLION WAS SUBSTANTIALLY LOWER THAN THE FIRST HALF'S 254 BILLION DE BEERS SAID ADDING THAT PROSPECTS FOR 1994'S FIRST HALF ARE UNCERTAIN AND WILL DEPEND ON JAPANESE AND EUROPEAN ECONOMIES THE YEAR'S RECORD SALES WERE DUE MAINLY TO A STRONG FIRST HALF DURING WHICH DIAMOND DEALERS BOOSTED LOW INVENTORIES DE BEERS SAID DIAMOND DEALERS ESTIMATE THAT A DE BEERS CARTEL CONTROLS 80 OF THE WORLD MARKET FOR ROUGH UNCUT DIAMONDS HOWEVER THE PENTAGON THIS YEAR AUCTIONED DIAMONDS FROM ITS COMMODITY STOCKPILE MEANWHILE RUSSIA WHICH NORMALLY SELLS 95 OF ITS OUTPUT TO DE BEERS IS SELLING SURPLUS STONES DIRECTLY TO DEALERS THE RUSSIANS ARE CAUSING PANDEMONIUM IN THE MARKET BY SIDESTEPPING DE BEERS SAID JACQUES ZUCKER MANAGING DIRECTOR OF BELDIAMCO BVBA AN ANTWERP BELGIUM DIAMOND DEALER 9312210063 931221 BUSINESS BRIEF CORESTATES FINANCIAL CORP CONCERN TO BUY RITTENHOUSE IN 55 MILLION STOCK DEAL CORESTATES FINANCIAL CORP PHILADELPHIA SAID IT AGREED TO ACQUIRE PRIVATELY HELD RITTENHOUSE FINANCIAL SERVICES INC AND ITS RITTENHOUSE TRUST CO UNIT FOR ABOUT 55 MILLION IN STOCK BASED IN RADNOR PA RITTENHOUSE IS AN INVESTMENT ADVISORY FIRM WITH 58 BILLION IN ASSETS UNDER MANAGEMENT THE TRUST COMPANY IS A STATECHARTERED BANK WITH 35 MILLION IN ASSETS CORESTATES IS A BANKING CONCERN WITH 228 BILLION IN ASSETS CORESTATES WILL OFFSET THE SHARES ISSUED IN THE PURCHASE BY BUYING AN EQUIVALENT NUMBER OF SHARES IN THE MARKET THE TRANSACTION WOULD GIVE RITTENHOUSE ABOUT A 1 INTEREST IN CORESTATES ON A FULLY DILUTED BASIS IN NASDAQ STOCK MARKET TRADING CORESTATES SHARES CLOSED AT 27 UP 25 CENTS 9312210062 931221 LEISURE & ARTS ON DISK THE YEAR'S BEST POP AND JAZZ SETS BY JIM FUSILLI JANIS COLUMBIA A THREEDISK COMPILATION OF THE MUSIC OF JANIS JOPLIN IS NOTHING IF NOT RAW AMONG THE SET'S 49 TRACKS ARE A DOZEN PREVIOUSLY UNRELEASED CUTS INCLUDING A LIVE CALL ON ME RECORDED IN 1967 WITH BIG BROTHER & THE HOLDING COMPANY ALTERNATE VERSIONS OF ME AND BOBBY MCGEE AND SUMMERTIME AND FLAWED FREESPIRITED RENDITIONS OF TROUBLE IN MIND AND HESITATION BLUES WITH GUITARIST JORMA KAUKONEN WHILE SOME OF THE EARLY ROCK MATERIAL IS SO DATED IT'S QUAINT THE FIERY BLUES NUMBERS ARE TIMELESS STOKED BY JOPLIN'S FULLTILT VOCALS ARGUABLY THE MOST INFLUENTIAL ROCK BAND LED ZEPPELIN PRODUCED A DIVERSE CATALOG OF POWERFUL ROCK MUSIC THAT IS BY TURN BONECRUSHING SENSUOUS WITTY INTELLIGENT AND NEVER DULL THE GROUP'S NINE STUDIO ALBUMS AND ASSORTED OTHER TRACKS ARE GATHERED IN LED ZEPPELIN THE COMPLETE STUDIO RECORDINGS ATLANTIC REMASTERED BY JIMMY PAGE AND GEORGE MARINO THE SOUND IS EXTRAORDINARY LISTEN TO THE CRACKLE OF JOHN BONHAM'S HIGHHAT AS HE CHASES THE ELUSIVE PAGE OR THE FLUTTER IN ROBERT PLANT'S VOCAL CAUGHT IN THE TORRENT OF ROCK AND ROLL THE POLICE'S MESSAGE IN A BOX A&M NOT ONLY CONTAINS EVERY STUDIO RECORDING THE TRIO RELEASED BUT A FEW LIVE TRACKS AS WELL WHAT'S BEST ABOUT THE FOURDISK SET IS HOW WELL IT DEMONSTRATES THE BAND'S GROWTH FULL OF BRIGHT IDEAS THE POLICE NEVER STRAYED FOR LONG FROM THE REGGAE BEAT BUILDING ON THE SPACE AND RHYTHM IT PROVIDED BY TOSSING IN KEYBOARDS AND HORNS IN TASTY SNIPPETS ALONG WITH AN OCCASIONAL REMARKABLE SOLO BY GUITARIST ANDY SUMMERS SPEAKING OF REGGAE TOUGHER THAN TOUGH THE STORY OF JAMAICAN MUSIC MANGO IS THE INDISPENSABLE GUIDE TO 35 YEARS OF SKA REGGAE DUB DANCEHALL AND RAGGA MUSIC THE FOURDISK SET CONTAINS 95 TRACKS THAT SEEM TO BUBBLE AND FLOAT WHILE CONVEYING A POWERFUL MESSAGE OF OPPRESSION FRUSTRATION AND FAITH SONGS THAT CROSSED OVER ONTO THE US POP CHARTS DESMOND DEKKER'S THE ISRAELITES MY BOY LOLLIPOP BY MILLIE EXCERPTS FROM JIMMY CLIFF'S THE HARDER THEY COME SOUNDTRACK ARE SPRINKLED AMONG SONGS BY BOB MARLEY BURNING SPEAR DENNIS BROWN GREGORY ISAACS THE MIGHTY DIAMONDS BLACK UHURU AND A HOST OF OTHER ARTISTS LESS WELL KNOWN OUTSIDE OF JAMAICA IN YO' FACE THE HISTORY OF FUNK RHINO IS ACTUALLY FIVE SEPARATE DISKS BUT THAT'S A MINOR PROBLEM REMEDIED WITH A STRONG RUBBER BAND THE 75 TRACKS ALL RECORDED DURING THE '70S DEMONSTRATE HOW THE MUSIC OF JAMES BROWN SLY STEWART GEORGE CLINTON AND CURTIS MAYFIELD GAVE BIRTH TO A LIVELY MOVEMENT CHARACTERIZED BY HOOKLADEN SONGS HARDPUNCHING HORN SECTIONS AND KILLER RHYTHM TRACKS BURSTING WITH NOTABLE BASS PERFORMANCES FEATURED ACTS INCLUDE EARTH WIND & FIRE KOOL & THE GANG THE AVERAGE WHITE BAND CHAKA KHAN THE ISLEY BROTHERS AND PROMINENTLY CLINTON'S FUNKADELIC AND PARLIAMENT UNITS FOR SOME REASON THE WORK OF STEVIE WONDER IS OMITTED HOWEVER THERE'S PLENTY OF BOOTSY COLLINS FUNK'S DEFINING BASSIST SEAN ROSS'S EXTENSIVE LINER NOTES HELP BRIDGE THE FIVE DISKS WHILE ANALYZING THE DEVELOPMENT OF THE FORM FOR MORE OF JAMES BROWN TRY SOUL PRIDE POLYDOR A COMPILATION OF 36 PREFUNK INSTRUMENTAL PERFORMANCES BY THE GODFATHER OF SOUL AND HIS RELENTLESS BAND THE HEROES HERE ARE BASSIST BERNARD ODUM GUITARIST JIMMY NOLEN DRUMMER CLYDE STUBBLEFIELD AND EARLY ARRANGER LEWIS HAMLIN ALONG WITH HORN MEN FRED WESLEY AND MACEO PARKER WHO ALSO DAZZLE ON IN YO' FACE THE BAND SETTLES INTO A DEEP R&B GROOVE ON THE OPENING TRACK HOLD IT AND DOESN'T LET UP UNTIL IT'S PASSED THROUGH MASHED POTATOES '66 THE POPCORN AND A VERY LEAN VERY CRISP AIN'T IT FUNKY NOW PTS 1 & 2 TWO ANTHOLOGIES BRIM WITH A BOLD REFLEXIVE SPIRIT THAT'S MISSING FROM TODAY'S CALCULATED AND PRISTINE POP RECORDINGS THE COBRA RECORDS STORY CAPRICORN IS LARGELY A TRIBUTE TO OTIS RUSH MAGIC SAM AND BUDDY GUY THE MAINSTAYS OF THE SMALL CHICAGOBASED LABEL THE SUBTITLE OF THIS GRITTY TWODISK SET CHICAGO ROCK AND BLUES 195658 TELLS ITS STORY ALSO TELLING WILLIE DIXON WAS THE LABEL'S INHOUSE PRODUCER AND SONGWRITER THE REMARKABLE LABEL SET THE OKEH RHYTHM & BLUES STORY 19491957 EPIC CONTAINS 78 TRACKS MANY OF WHICH ARE OBSCURE NOVELTY RECORDINGS RIFE WITH SEXUAL INNUENDO AND BAD PUNS BUT THERE ARE A FEW DOZEN GEMS IN THE SET AMONG THEM LEAVE IT TO ME BY ANNIE LAURIE ROCK THIS JOINT BY CHUCK POWELL & THE FIVE BLUE FLAMES AND SIX NUMBERS BY THE GREAT CHUCK WILLIS AND NO MATTER WHAT THE SUBJECT MATTER THE BACKING TRACKS SWING AND MOAN DON CHERRY A VITAL MEMBER OF COLEMAN'S ORIGINAL GROUP IS HIMSELF THE SUBJECT OF A DAZZLING TWODISK SET THE COMPLETE BLUE NOTE RECORDINGS OF DON CHERRY MOSAIC IT FEATURES NINE AMBITIOUS CHERRY COMPOSITIONS THAT INCLUDE FOUR EXTENDED SUITES WHILE THE MUSIC BEARS A COLEMAN INFLUENCE CHERRY'S CHOICE OF COMPANIONS GATO BARBIERI ON TENOR PHAROAH SANDERS ON PICCOLO AND KAY BERGER ON VIBES JOIN ED BLACKWELL ON DRUMS AND THE UNDERRATED HENRY GRIMES ON BASS GIVES THE GROUP'S SOUND ITS VERY OWN COLOR AND SPARKLE THE PERFORMANCES RECORDED IN LATE 1965 AND 1966 AREN'T SO MUCH ANGRY AS THEY ARE FURIOUS AND CHERRY'S CORNET PLAYING IS HIGHLY CHARGED 9312210061 931221 BUSINESS BRIEF TENCOR INSTRUMENTS INC COMPANY AGREES TO ACQUIRE PROMETRIX IN A STOCK SWAP TENCOR INSTRUMENTS INC SAID IT AGREED TO BUY PRIVATELY HELD PROMETRIX CORP IN A STOCK SWAP VALUED AT 458 MILLION THE TWO COMPANIES MAKE TEST AND MEASUREMENT EQUIPMENT USED IN MAKING SEMICONDUCTOR CHIPS TENCOR SAID EACH SHARE OF PROMETRIX WILL BE CONVERTED INTO 07776 SHARES OF TENCOR COMMON STOCK PROMETRIX SHAREHOLDERS WILL RECEIVE ABOUT 39 MILLION SHARES OF TENCOR COMMON TENCOR SAID TENCOR WENT PUBLIC IN MARCH 1993 AT 750 A SHARE ITS STOCK CLOSED YESTERDAY AT 1175 DOWN 125 CENTS ON THE NASDAQ STOCK MARKET TENCOR FOUNDED IN 1976 AND BASED IN MOUNTAIN VIEW CALIF EARNED 13 MILLION OR 16 CENTS A SHARE ON SALES OF 181 MILLION FOR THE THIRD QUARTER PROMETRIX BASED IN SANTA CLARA CALIF HAD SALES OF 357 MILLION FOR THE FISCAL YEAR ENDED OCT 31 AND WAS PROFITABLE A TENCOR SPOKESWOMAN SAID 9312210060 931221 INDUSTRY FOCUS PHONE PROJECT MAY BE RUSSIA'S NEW WINDOW TO WEST SOME FEAR 40 BILLION MODERNIZATION MAY BE JUST ANOTHER FIVEYEAR PLAN BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW FOR THE WEST'S MAJOR TELEPHONE COMPANIES RUSSIA HAS BEEN A LAND OF PROMISE ALL PROMISE IN FACT AND LITTLE BANKABLE BUSINESS NOW THE RUSSIAN GOVERNMENT IS DANGLING ITS BIGGEST PROMISE EVER AND THE MULTINATIONALS BADLY WANT TO BELIEVE IN IT ON THE DRAWING BOARD AT THE MINISTRY OF POSTS AND TELECOMMUNICATIONS IS THE WORLD'S BIGGEST TELEPHONE PROJECT A 10YEAR PLAN TO SPEND 40 BILLION MODERNIZING RUSSIA'S LONGDISTANCE NETWORK AND DOUBLING THE NUMBER OF TELEPHONES IN USE NATIONWIDE THE RUSSIANS CALL THE PROJECT 50X50 AFTER THE 50000 KILOMETERS OF LONGDISTANCE LINES AND 50 TELEPHONE EXCHANGES INVOLVED IF SUCCESSFUL IT WOULD YANK THE COUNTRY'S PREREVOLUTIONARY TELEPHONE NETWORK INTO THE MODERN ERA HELP JUMPSTART THE DESTITUTE RUSSIAN ECONOMY AND BE THE LONGAWAITED SALES BOOM THAT HAS SO FAR ELUDED THE WESTERN TELECOMMUNICATIONS GIANTS HERE THE PROJECT HAS SUCH A HIGH PROFILE THAT IT ALSO REPRESENTS AN EARLY LITMUS TEST OF WESTERN INVESTORS' ATTITUDES TOWARD THE NEW POLITICAL LANDSCAPE OF RUSSIA FOLLOWING LAST WEEK'S ELECTIONS IF IT FLOPS AFTER MORE THAN A YEAR IN PREPARATION IT WILL BE A VOTE OF NO CONFIDENCE IN RUSSIA FROM SOME OF THE WEST'S BIGGEST RISKTAKERS THE TELECOMMUNICATIONS INDUSTRY THE PLAN'S SUCCESS WAS ALWAYS PINNED ON THE WILLINGNESS OF WESTERNERS TO FINANCE IT NOW EVERY WESTERN PHONE COMPANY HERE IS REEXAMINING EARLIER ASSUMPTIONS ABOUT THE PROJECT'S RISKS WE'RE TRYING TO COME UP WITH A POLITICAL ANALYSIS OF THE ELECTION SAYS ERIK JENNES HEAD OF EQUIPMENT SALES HERE FOR AMERICAN TELEPHONE & TELEGRAPH CO WESTERN EXECUTIVES ARE HEARTENED BY THE NEW RUSSIAN CONSTITUTION WHICH INCLUDES LANGUAGE ON TELECOMMUNICATIONS THAT STRENGTHENS THE GOVERNMENT'S HAND TO ADVANCE PROJECTS LIKE 50X50 BUT THEY WORRY ABOUT THE RISE IN RUSSIAN NATIONALISM AND ITS CHAMPION VLADIMIR ZHIRINOVSKY WE AREN'T SURE WHAT THE IMPACT WILL BE BUT WE'RE STILL COMMITTED TO WORK IN RUSSIA SAYS WILLIAM J BOBB II HEAD OF U S WEST INC'S MOBILEPHONE DIVISION IN RUSSIA FOR MOST MULTINATIONALS RUSSIA HAS BEEN DISAPPOINTING BUT 50X50 HAS ENERGIZED THE MARKET THE OFFICES HERE OF AT&T U S WEST FRANCE TELECOM DEUTSCHE BUNDESPOST TELEKOM AND SIEMENS AG ARE BUZZING WITH RUMORS ABOUT 50X50 AS THEY VIE TO OFFER TECHNICAL ADVICE AND HUSTLE FOR A SHARE OF THE PROJECT RUSSIA IS A HUGE MARKET AND SUCH A PROJECT COULD BE THE FLYWHEEL TO GET BUSINESS ROLLING SAYS MR JENNES SO FAR THREE COMPANIES HAVE THE INSIDE TRACK TO JOIN A SPECIAL OPERATING CONSORTIUM TO RUN THE NEW PHONE SYSTEM U S WEST FRANCE TELECOM AND DEUTSCHE TELEKOM THERE WILL ALSO BE MANY EQUIPMENT SUPPLIERS WE DON'T WANT TO HAVE ONE MONOPOLY COMPANY RUNNING THE PROJECT SAYS NAUM S MARDER HEAD OF THE MINISTRY'S TELECOMMUNICATIONS DEPARTMENT THE ATTEMPT TO FINANCE THE PROJECT IS A CASE STUDY OF THE STRANGE RELATIONSHIP BETWEEN WESTERN SUPPLIERS AND EASTERN EUROPEAN GOVERNMENTS AS THEY STRUGGLE TO UPGRADE ANTIQUATED PHONE SYSTEMS THE TOTAL BILL WILL TOP 94 BILLION BUT THERE'S NO WAY THE LOCAL PHONE COMPANIES OR THEIR GOVERNMENTS CAN RAISE SUCH SUMS TO DO IT THEY MUST TURN TO WESTERNERS SO HUNGRY FOR BUSINESS ARE THE WESTERNERS THAT THEY ROUTINELY WORK TO LINE UP THE MONEY WITH WHICH THEY'LL BE PAID BUT THE 50X50 PROJECT IS AN AUDACIOUS ATTEMPT BY RUSSIAN AUTHORITIES TO PLAY THIS FINANCING GAME ON AN UNPRECEDENTED SCALE SOME SUCH AS U S WEST THINK THE RUSSIANS CAN SUCCEED LINING UP THE 40 BILLION IS A VERY DIFFICULT TASK CONCEDES VICTOR PAVLENKO PRESIDENT OF U S WEST'S RUSSIAN AND LITHUANIAN OPERATIONS BUT HE'S BULLISH WE'RE CONVINCED THERE ARE FINANCING METHODS THAT CAN BE USED HERE THE NUMBERS AREN'T QUITE AS BAD AS THEY MIGHT SEEM OF THE TOTAL JUST 13 BILLION TO 15 BILLION WILL BE IN HARD CURRENCY THE REST WILL BE IN RUBLES OTHERS ARE AGNOSTICS IT IS A MODERNIZED VERSION OF THE GRAND SOVIETERA PLANS OF UNREALISTIC FIVEYEAR TARGETS SAYS HENRY RADZIKOWSKI GENERAL MANAGER OF SPRINT CORP'S OPERATIONS IN THE FORMER SOVIET UNION HE SAYS SPRINT PROPOSED THAT THE MINISTRY BREAK 50X50 INTO SMALLER BITES THE PROJECT BEGAN ON A SMALLER SCALE AS A 1 BILLION UPGRADE OF THE LONGDISTANCE NETWORK NOBODY DISPUTES THAT'S NEEDED AS MANY OF THE COPPER CABLES LAID IN CZARIST TIMES ARE STILL IN USE NICKS CORROSION AND ALL ABOUT 200000 RUSSIAN VILLAGES HAVE NO PHONES AND NATIONWIDE THERE ARE JUST 153 PHONE LINES PER 100 INHABITANTS ABOUT ONEFIFTH THE US RATE THE ECONOMICS OF A LONGDISTANCE UPGRADE WERE EASY ONCE THE INITIAL 1 BILLION WAS RAISED ECONOMISTS CALCULATED THE PROJECT COULD RECOVER ITS COSTS FAIRLY QUICKLY BESIDES REVENUE FROM LONGDISTANCE CALLING INSIDE RUSSIA THE NEW NETWORK COULD CARRY TRANSIT TRAFFIC OR CALLS BETWEEN EUROPE AND THE FAR EAST MOST SUCH CALLS NOW GO BY SATELLITE OR BY CABLE THE LONG WAY VIA NORTH AMERICA BUT THIS AUTUMN THE MINISTRY PULLED A SURPRISE SAYING 50X50 ALSO WOULD INSTALL 20 MILLION NEW LOCAL TELEPHONE LINES THE PROPOSAL WHICH WOULD NEARLY DOUBLE THE NATION'S 228 MILLION LINES TURNED THE ECONOMICS OF THE PROJECT ON ITS HEAD GENERALLY 90 OF THE PROFITS FROM A NATION'S PHONES ARE GENERATED BY A LONGDISTANCE NETWORK THAT COSTS JUST 10 OF THE TOTAL INVESTMENT THE LOCAL LINES CONSUME 90 OF ALL CAPITAL YET GENERATE 10 OF PROFITS THE LOCAL LINES MAKE THE FINANCING OF 50X50 MORE DIFFICULT SAYS DIETRICH WESTENDOERPF DEUTSCHE TELEKOM'S MOSCOW BOSS THE MINISTRY'S MR MARDER HOWEVER INSISTS THE NUMBER IS REALISTIC HE NOTES SIMILAR SKEPTICISM MET RUSSIA'S PLAN TO BUILD ITS FIRST CROSSCOUNTRY DIGITAL COMMUNICATIONS LINE THIS YEAR BUT THE FIRST LEG A FIBEROPTIC CABLE AND MICROWAVE CHANNEL FROM COPENHAGEN TO MOSCOW WAS COMPLETED LAST APRIL BY A GROUP INCLUDING TELECOM DENMARK THE SECOND LEG LINKING RUSSIA'S FAR EAST TO JAPAN AND SOUTH KOREA IS UNDER CONSTRUCTION BY THE DANES AND JAPAN'S MAIN LONGDISTANCE CARRIER KOKOSAI DENSHIN DAIWA LTD AMONG OTHERS FINALLY CONTRACTS FOR THE LEG FROM MOSCOW TO THE FAR EAST ARE BEING FINALIZED WITH SUMITOMO CORP NEC CORP AND SIEMENS OF COURSE THE SCALE IS MUCH SMALLER THAN 50X50 ALL THREE LINKS TOGETHER COST LESS THAN 500 MILLION TO KEEP COSTS DOWN SAYS OLEG G BELOV GENERAL DIRECTOR OF ROSTELECOM THE COUNTRY'S MAIN LONGDISTANCE CARRIER 50X50 WILL BUY LOCALLY WHENEVER POSSIBLE WESTERN SUPPLIERS WILL BE ENCOURAGED TO FORM JOINT VENTURES WITH RUSSIAN COMPANIES TAKING ADVANTAGE OF LOW WAGES INDEED ONE OF THE PROJECT'S GOALS IS TO BUILD UP THE LOCAL INDUSTRY AND TO HELP PAY THE BILL IT'S ASSUMED RUSSIAN LONGDISTANCE RATES WILL RISE AT LEAST THREEFOLD THE MINISTRY'S MR MARDER SAYS RAISING THE 15 BILLION IN HARD CURRENCY WILL BE A SNAP IF YOU DIVIDE THAT INTO 10 YEARS THE PROJECT'S TERM THAT'S 15 BILLION A YEAR HE SHRUGS BESIDES HE SAYS ANY WESTERN INVESTOR KNOWS TELECOMMUNICATIONS IS A FACTORY FOR MAKING MONEY 9312210058 931221 LEISURE & ARTS BOOKS FOR GARDENERS NAUGHTY AND NICE BY PATTI HAGAN COULD BOOK PUBLISHERS PLEASE BEGIN EXERCISING SOME REPRODUCTIVE RESTRAINT IN THE MATTER OF GARDENING BOOKS BESIDE ME IS A 7FOOT STACK OF ILLCONCEIVED AND SLOPPILY EDITED NEW TITLES OUTSTANDING AMONG THEM IS FROM CLAUDE MONET TO JENNIFER BARTLETT ARTISTS' GARDENS ABRAMS 208 PAGES 132 ERICA LENNARD PHOTOS 4950 3 POUNDS BY GARDEN DESIGNER TURNED WRITER MADISON COX CLAUDE MONET WAS A KNOWLEDGEABLE PLANTSMANGARDENER JENNIFER BARTLETT IS NO CLAUDE MONET WHATEVER POSSESSED ABRAMS TO PUT SUCH STRANGE BEDFELLOWS BETWEEN THE SAME COVERS WAS IT THE HOPE THAT MS BARTLETT WOULD RECYCLE HER 1991 BATTERY PARK CITY AUTHORITYREJECTED SOUTH GARDENS HER FABULOUSLY EXPENSIVE HORTICULTURALLY INEPT CONGESTIVELY DESIGNED GRIDLOCK OF GARDEN ROOMETTES FROM THE PUBLIC PLANTING SECTOR TO THE PRIVATE THIS COFFEETABLE TREATISE SHOWS SCION OF SOUTH GARDENS FORMALLY INSTATED MAY 1991 ON MS BARTLETT'S GREENWICH VILLAGE ROOFS 42 TONS OF TOPSOIL WITH GRIDDED APPATURES SIC UNDENIABLY AWESOME TO GARDEN COLLABORATOR COX UNDENIABLY AWESOME TO READERS IS HIS WONDROUS PROSE HOW ABOUT THE ATMOSPHERE IN THE PAINTER'S GARDEN SEEMS DIFFUSED WITH AN ETERNAL LYRICAL QUALITY THAT RESONATES THROUGHOUT THE NEARLY TWOACRE SITE AND ECHOES ROBERT DASH'S DEDICATION TO HIS GARDEN OVERSHADOWED ONLY BY HIS LOVE OF PAINTING OR DASH'S MADOO RANKS WITH EARLY20THCENTURY GARDENS THAT CONTINUE TO WIELD A CONSIDERABLE STRONGHOLD ON GARDEN CRITERION TODAY ONLY RARELY DOES A GREAT WRITER INHABIT THE SAME BODY AS A GREAT GARDENER VITA SACKVILLEWEST DID AND ABRAMS WAS INSPIRED TO REISSUE SOME FLOWERS 112 PAGES 27 FRESH GRAHAM RUST WATERCOLORS 1995 HER FAVORITE 25 BUT EVEN IN THIS BOWER OF BELOVED BLOOMS IN 1937 SACKVILLEWEST WAS VEXED BY THE PROBLEM OF GARDEN GABBLE LOSING MY TEMPER FREQUENTLY WITH THE NAUSEATING SENTIMENTAL PHRASEOLOGY WHICH SEEMS TO IMPOSE ITSELF ON ALL THOSE OTHERWISE SINCERE AND HONEST GARDENERS WHO FEEL IMPELLED TO TRANSMIT THEIR KNOWLEDGE AND EXPERIENCE AND EMOTIONS TO OTHER AND MORE IGNORANT PEOPLE IT SEEMED TO ME THAT THEY ALL EMPLOYED THE SAME SICKLY VOCABULARY IN THIS SHORT UNSENTIMENTAL WITTY VERY PERSONAL VERY ARBITRARY BOOK FLOWERS ARE NEVER QUAINT DAINTY OR WINSOME IRIS UNGUICULARIS FRAIL AND DELICATE IN APPEARANCE IS REALLY A TOUGH WHICH FLOURISHES BEST IN A SORT OF RUBBISH HEAP LILIUM AURATUM UNFOLDS TO EXPOSE ITS LEOPARDLIKE THROAT IN TRULY SUPERB AND TOWERING ARROGANCE EVEN SO SACKVILLEWEST WROTE IT IS VERY DIFFICULT INDEED TO WRITE ABOUT FLOWERS DIFFICULT INDEED BUT ELIZABETH STRANGMAN AND GRAHAM RICE ALSO WRITE VERY WELL ABOUT THE FLOWERS THAT BEWITCH THEM THE GARDENER'S GUIDE TO GROWING HELLEBORES TIMBER PRESS 160 PAGES 2995 CARRIES A GENTLE WARNING HELLEBORES ARE ADDICTIVE ROGER PHILLIPS'S LUMINOUS PHOTOS CATCH THE MEDIEVALMUTEDPEWTERDAPPLEDDAWNDRAWNROSEMAUVE VIRIDIANETHEREAL BEAUTY OF THE HELLACIOUS HELLEBORES MOREOVER HELLEBORES ARE TOLERANT PLANTS UNLIKE THE PEOPLE THEY GROW AMONG WITH THE GREATEST CONCENTRATION OF SPECIES IN THE FORMER COUNTRY OF YUGOSLAVIA HELLEBORUS MULTIFIDUS SUBSPECIES HERCEGOVINUS WHERE THEY FREELY INTERBREED EVEN THE MOST SERIOUS HELLEBOREANS GIVE HUMOROUS TESTAMENT TO THE HELLEBORES IN THEIR LIVES ERIC SMITH WAS A CELEBRATED THOUGH HAPHAZARD HELLEBORE HYBRIDIZER HE DID NOT EMASCULATE FLOWERS CLEAN HIS POLLEN BRUSH OR COVER HIS CROSSES HELEN BALLARD GREENHOUSE POSTED DANGER HELLEBORE CROSSING RECALLS A 1960S HELLEBORE HUNT NEAR LJUBLJANA SLOVENIA AND THE MOST THRILLING EXPERIENCE SEEING THE CHRISTMAS ROSE H NIGER FLOWERING IN GREAT STRETCHES ON MOUNTAINTOPS IN NORTHWEST YUGOSLAVIA APROPOS THE SEASON CHRISTMAS ROSE AND LENTEN ROSE ARE THE BESTLOVED HELLEBORES NATURE'S GIFT TO GARDENERS IN THE DISMAL MONTHS AFTER CHRISTMAS SING THE HALLELUJAH HELLEBORUS THEN GET DOWN TO EARTH WHERE ALLEN LACY HAS BLOWN THE GROUNDCOVER ON LOWDOWN PLANTS IN GARDENING WITH GROUNDCOVERS AND VINES HARPERCOLLINS 234 PAGES 35 MR LACY REFORMED EYELEVEL GARDENER 100 CURED OF SHORTSIGHTED GARDENING ATTEMPTS TO REHABILITATE GROUNDCOVER THE NOUN ONE OF THE DULLEST WORDS IN THE GARDENER'S VOCABULARY AND THE PLANTS OFTEN TREATED AS THE PLEBEIANS OF THE GARDEN THIS BOOK BREAKS NEW GROUNDCOVER MR LACY FINDS SUBURBAN AMERICANS GUILTY OF THE LOWLEVEL CRIME OF GC ABUSE BY TRYING SIMPLY TO COVER THE GROUND WITH A LOT OF BIOMASS BORING BIOMASS THE FOUR CANONICAL GROUNDCOVERS PACHYSANDRA IVY VINCA AND CARPET JUNIPER AMERICANS ARE USING GROUNDCOVERS NOT GARDENING WITH THEM MAYBE OK FOR SCHOOLS BANKS FASTFOOD RESTAURANTS BUT IT ISN'T GARDENING OUR MOST FARSIGHTED GROUNDCOVERIST DOES NOT DIG A SUBURBAN AMERICA FULL OF STINGY SHALLOW MINIBEDS LANDSCAPED LIKE FASTFOOD JOINTS AFTER SUFFICIENT PACHYBASHING MR LACY NAMES BINOMIALS AND PRESENTS WITH CYNTHIA WOODYARD'S ACCOMPLISHED PHOTO ASSIST THE GROUNDCOVERS FOR CHANGE HE TOO HAILS HELLEBORES COVERING SOME OF THE SAME GROUND F GORDON FOSTER'S CLASSIC FERNS TO KNOW AND GROW IS IN ITS THIRD OUTING COURTESY OF TIMBER PRESS 230 PAGES 2295 IN ELEGANT LINE DRAWINGS AND WORDS MR FOSTER DESCRIBES HIS THRILLING HOBBY OF FERN STUDY THESE PRIMITIVE FLOWERLESS PLANTS ANCIENT MILLENNIAL GROUNDCOVERS EVEN FOR FERNLOVING PEOPLE IN 1993 IT IS ASTONISHING TO LEARN THAT SINCE BEFORE THE DINOSAURS TWICE IN THE LIFE OF A FERN IT EXISTS AS A SINGLECELLED ORGANISM ANOTHER NATURAL GROUNDMATE IS GARDEN PATHS CAMDEN HOUSE 242 PAGES 1995 GORDON HAYWARD PARSES PATHS PLEASINGLY BRICK CRUNCHY SURFACE GRAVEL LAWN RIBBON SOD STONE TRODDEN EARTH WOODEVERY PATH BUT PRIMROSE AND WAYWARD GARDEN PATHS IS/ARE IRRESISTIBLE THEY PULL YOU IN LEAD YOU ON WITHOUT THE GARDENER'S DICTIONARY OF HORTICULTURAL TERMS CASSELL DISTRIBUTED BY STERLING 378 PAGES 2995 I WOULD NOT KNOW TO CALL A DANGLING BIRCH CATKIN AN AGLET ANY CLIMBING PLANT A WITHWIND OR TO MAKE THE EXCEEDINGLY FINE DISTINCTION BETWEEN RUGOSE WRINKLED AND RUGULOSE FINELY WRINKLED IS THERE A ROSA RUGULOSA HAROLD BAGUST A COTSWOLDS NURSERYMAN AND PELARGONIUM EXPERT HAS COMPILED THIS AZ OF HORTICULTURAL TERMS CAREFULLY MINING HEADWORDS GREX KEX YARFA FROM THE LITERATURE OF BOTANY HORTICULTURE AND GARDENING THE OLDEST BOOK CONSULTED WAS JAMES LEE'S INTRODUCTION TO BOTANY 1765 AND DEDICATED TO THE VERY EMINENT DR LINNAEUS KNIGHT OF THE POLAR STAR PROFESSOR OF BOTANY ON AN EVEN MORE SERIOUS LEVEL THE EXISTENTIALIST SAGE MARTIN BUBER CONTRIBUTES THE EPIGRAPH TO THE FOURTH EDITION OF PERENNIALS AND THEIR GARDEN HABITATS TIMBER PRESS 450 PAGES 4995 AN IMPASSIONED BOOK OF PRACTICALEXISTENTIALECOLOGICAL GARDENING PHILOSOPHY WHAT RICHARD HANSEN AND FRIEDRICH STAHL GERMAN PLANTSMEN PROPOSE IS A NEW WAY OF USING PERENNIALS BASED ON ECOLOGICAL RATHER THAN PURELY AESTHETIC PRINCIPLES PLANTING BY PLANT COMMUNITIES WE HOPE TO PROMOTE A HANDS OFF' APPROACH TO GARDENING AND POINT THE WAY TO AN ATTRACTIVE AND RICHLY DIFFERENTIATED BUT NATURAL TYPE OF GARDEN THE NEARNATURAL GARDEN THE ESSENCE OF A GARDEN IS LIFE IN PROGRESS AND OUR FIRST DUTY IS THEREFORE TO LET THINGS GROW LIBERATION GARDEN THEOLOGY THEIR LONG TERM PERFORMANCE LISTS FOR 2025 YEAR OLD PLANTINGS IN WOODLAND RELAY A QUARTER CENTURY OF MINUTE OBSERVATIONS ASARUM EUROPAEUM IS VERY DENSE NO INTRUDERS SEEDS ITSELF WHILE GALIUM ODORATUM TENDS TO INVADE NEIGHBOURING PLANTS THEY SEEM APOLOGETIC THAT SOME PLANTS HAVE ONLY BEEN OBSERVED OVER THE PAST 1015 YEARS A HORTBIBLE PS THE ULTIMATE ROSE BOOK ABRAMS 472 PAGES 4950 BY STIRLING MACOBOY ISN'T EVEN THE PENULTIMATE ROSE BOOK THOUGH IT IS OBESE 5 POUNDS OVERSIZED 1 FOOT 1 INCH BY 9 3/4 INCHES OVERBLOWN THE GARISH COVER HORDES OF SHOWBIZ HYBRID TEA ROSEHEADS IS CHEAP WRAPPING PAPER INTERIOR MUG SHOTS FEW LEAVES BUDS OR CANES VISIBLE MAKE ROSE ID IMPOSSIBLE DEFINITIVELY SUBROSAPAR 9312210057 931221 WHO'S NEWS SWEDISH ENGINEER PICKED TO BE CHAIRMAN OF VOLVO STOCKHOLM BERTOLOF SVANHOLM A RESPECTED BUT LOWKEY SWEDISH ENGINEER AGREED TO BECOME AB VOLVO'S NEW CHAIRMAN TOGETHER WITH A NEW SLATE OF DIRECTORS HE WILL WORK TO SORT OUT THE SWEDISH AUTO MAKER'S FUTURE FOLLOWING THE RECENT COLLAPSE OF A PLANNED MERGER WITH RENAULT SA OF FRANCE VOLVO'S LONGTIME CHAIRMAN PEHR GYLLENHAMMAR AND OTHER DIRECTORS RESIGNED EN MASSE EARLIER THIS MONTH AFTER CANCELLATION OF THE PROPOSED MARRIAGE WITH RENAULT THE ANNOUNCEMENT REGARDING MR SVANHOLM HAD BEEN EXPECTED FOLLOWING WEEKEND REPORTS IN THE SWEDISH NEWS MEDIA THAT HE WAS THE CHOICE OF MAJOR INSTITUTIONAL SHAREHOLDERS SCRAMBLING TO REBUILD VOLVO'S BOARD IN A HINT OF CONCILIATION WITH ITS JILTED FRENCH PARTNER RENAULT CHAIRMAN LOUIS SCHWEITZER AGREED TO ACCEPT A SEAT ON THE NEW VOLVO BOARD BESIDES MESSRS SCHWEITZER AND SVANHOLM AND ONE INCUMBENT DIRECTOR VOLVO'S CHIEF EXECUTIVE OFFICER SOEREN GYLL NOMINEES INCLUDE BJOERN SVEDBERG CHAIRMAN OF TELEFON AB LM ERICSSON AND CHIEF EXECUTIVE OF SKANDINAVISKA ENSKILDA BANKEN TOM HEDELIUS CHAIRMAN OF SVENSKA HANDELSBANKEN PEROLOF ERICSSON CHIEF EXECUTIVE OF SANDVIK AB AND HAKAN FRISINGER THE 66YEAROLD FORMER VOLVO CHIEF EXECUTIVE WHO LEFT THE COMPANY IN 1987 AFTER LOSING A POWER STRUGGLE WITH MR GYLLENHAMMAR 9312210056 931221 POLITICS & POLICY FILE ON CLINTONS' REALESTATE DEALINGS IS WITH THEIR LAWYER WHITE HOUSE SAYS BY BRUCE INGERSOLL AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE SEEKING TO DISPEL SUGGESTIONS OF A COVERUP SAID THAT A FILE DEALING WITH THE CLINTONS' INVESTMENT IN AN ARKANSAS REALESTATE DEVELOPMENT IS IN THE HANDS OF THEIR PERSONAL ATTORNEY WHITE HOUSE OFFICIALS SOUGHT TO SQUELCH TALK THAT SUCH A FILE KEPT BY DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER HAD DISAPPEARED SOON AFTER HIS JULY 20 SUICIDE COMMUNICATIONS DIRECTOR MARK GEARAN CONFIRMED THAT TWO WHITE HOUSE AIDES MARGARET WILLIAMS AND PATSY THOMASSON ENTERED MR FOSTER'S OFFICE THE NIGHT OF HIS DEATH TO SEARCH FOR A NOTE EXPLAINING WHY HE TOOK HIS LIFE BUT HE SAID THEY FOUND NONE AND TOOK NOTHING FROM THE OFFICE TWO DAYS LATER ON JULY 22 WHITE HOUSE LAWYERS LED BY WHITE HOUSE COUNSEL BERNARD NUSSBAUM CONDUCTED AN INVENTORY OF DOCUMENTS AND OTHER ITEMS IN MR FOSTER'S OFFICE MR GEARAN SAID THE INVENTORY WAS DONE IN THE PRESENCE OF LAWENFORCEMENT OFFICIALS HE SAID BUT US PARK POLICE DETECTIVES HAVE COMPLAINED ABOUT BEING KEPT OUTSIDE THE OFFICE MUCH OF THE TIME MR GEARAN EXPLAINED THAT MR FOSTER'S FILES WERE DIVIDED BY WHITE HOUSE OFFICIALS INTO THREE CATEGORIES FOR DISTRIBUTION WHITE HOUSE FILES DEALING WITH OFFICIAL BUSINESS WERE ENTRUSTED TO MR NUSSBAUM MR FOSTER'S PERSONAL FILES WERE GIVEN TO THE FOSTER FAMILY LAWYER JAMES HAMILTON AND PERSONAL LEGAL FILES OF BILL AND HILLARY RODHAM CLINTON WHOM MR FOSTER HAD REPRESENTED WERE SENT TO THE CLINTONS' OUTSIDE ATTORNEY DAVID KENDALL OF THE WASHINGTON LAW FIRM WILLIAMS & CONNOLLY WE KNOW OF NO MISSING FILES SAID MR GEARAN THE FILES WERE ALL HANDLED APPROPRIATELY NEWSPAPERS HAVE REPORTED THAT THE JUSTICE DEPARTMENT IS LOOKING INTO THE POSSIBILITY THAT A FILE DEALING WITH THE CLINTONS' INVESTMENT IN AN OZARK MOUNTAIN REALESTATE VENTURE WHITEWATER DEVELOPMENT CORP MIGHT HAVE BEEN TAKEN FROM MR FOSTER'S OFFICE AFTER HIS DEATH UNTIL LAST YEAR THE CLINTONS OWNED WHITEWATER WITH JAMES MCDOUGAL OWNER OF A NOWDEFUNCT LITTLE ROCK THRIFT MADISON GUARANTY SAVINGS & LOAN AND HIS WIFE SUSAN A SPECIAL TEAM OF FEDERAL PROSECUTORS IS INVESTIGATING MADISON GUARANTY INCLUDING THE POSSIBLE DIVERSION OF THRIFT FUNDS TO HELP PAY OFF A 1984 REELECTION CAMPAIGN DEBT OF 50000 FOR WHICH THENGOV CLINTON WAS PERSONALLY LIABLE IN RESPONSE TO THOSE NEWS ACCOUNTS MR GEARAN SAID THAT THE CLINTONS' TAX RETURNS WHITEWATER'S TAX RETURNS AND DOCUMENTS DEALING WITH THE CLINTONS' SALE LAST YEAR OF THEIR STAKE IN WHITEWATER WERE ALL PRESERVED AND SENT TO MR KENDALL LAST EVENING MR KENDALL WHO ALSO REPRESENTS MAJOR NEWSPAPERS AND OTHER MEDIA CLIENTS DECLINED TO COMMENT MEANWHILE THE JUSTICE DEPARTMENT'S OFFICE OF PROFESSIONAL RESPONSIBILITY APPEARS TO BE EXPANDING WHAT BEGAN AS A NARROW INQUIRY INTO A NOTE WRITTEN BY MR FOSTER BEFORE HE SHOT HIMSELF THE NOTE WHICH WAS UNDATED AND TORN INTO 27 PIECES WAS FOUND IN HIS BRIEFCASE SIX DAYS AFTER HIS DEATH IT ALLEGES AMONG OTHER THINGS THAT THE FEDERAL BUREAU OF INVESTIGATION LIED TO ATTORNEY GENERAL JANET RENO ABOUT THE CIRCUMSTANCES OF ITS INQUIRY LAST SPRING INTO POSSIBLE ABUSES AT THE WHITE HOUSE TRAVEL OFFICE JUSTICE DEPARTMENT INVESTIGATORS ARE QUESTIONING PARK POLICE OFFICERS ABOUT WHAT THEY ENCOUNTERED AND UNCOVERED IN THEIR INVESTIGATION OF MR FOSTER'S DEATH PARK POLICE ARE INVOLVED BECAUSE THE SUICIDE OCCURRED ON FEDERAL PARKLAND INVESTIGATORS ARE REVIEWING AMONG OTHER THINGS THE EFFORTS OF PARK POLICE DETECTIVES TO QUESTION WHITE HOUSE STAFF MEMBERS AND TO EXAMINE DOCUMENTS AND OTHER ITEMS IN MR FOSTER'S OFFICE ACCORDING TO LAWENFORCEMENT OFFICIALS SOME DETECTIVES SAY THEY WERE FRUSTRATED BY STRICT LIMITS IMPOSED BY MR NUSSBAUM THE WHITE HOUSE COUNSEL ON WHAT THEY COULD PERUSE WE WERE DEFINITELY SHOWN JUST WHAT THEY WANTED US TO SEE COMPLAINED ONE PARK POLICE DETECTIVE WE COULDN'T COPY ANYTHING A WHITE HOUSE OFFICIAL HOTLY DISPUTED THAT MR NUSSBAUM HAD DONE ANYTHING WRONG THE OFFICIAL ARGUED THAT MR NUSSBAUM WAS MERELY PROTECTING DOCUMENTS THAT WERE SUBJECT TO THE LAWYERCLIENT PRIVILEGE AS WELL AS THE EXECUTIVE PRIVILEGE OF THE PRESIDENT JUSTICE DEPARTMENT INVESTIGATORS ALSO HAVE BEGUN QUESTIONING THE DETECTIVES ABOUT ANY PAPERS OR DOCUMENTS THEY MAY HAVE EXAMINED IN THE OFFICE OF JAMES HAMILTON A WASHINGTON ATTORNEY WHO IS REPRESENTING THE FOSTER FAMILY MR HAMILTON HAS BALKED AT TURNING OVER TO THE JUSTICE DEPARTMENT WHAT A PARK POLICE REPORT DESCRIBES AS A PERSONAL DIARY KEPT BY MR FOSTER THE DIARY IS SAID TO BE A SMALL STOREBOUGHT NOTEBOOK WITH ABOUT 12 PAGES OF ENTRIES MOSTLY ABOUT THE 1992 PRESIDENTIAL CAMPAIGN 9312210055 931221 BUSINESS BRIEF COOPERS & LYBRAND FISCAL '93 REVENUE FELL 24 FIRM CITES EXCHANGE RATES COOPERS & LYBRAND NEW YORK SAID ITS WORLDWIDE REVENUE FOR THE YEAR ENDED SEPT 30 DROPPED BECAUSE OF EXCHANGERATE FLUCTUATION WHILE US REVENUE ROSE THE ACCOUNTING AND CONSULTING CONCERN REPORTED WORLDWIDE REVENUE OF 522 BILLION DOWN 24 FROM THE PREVIOUS YEAR USING 1992 EXCHANGE RATES REVENUE WOULD HAVE INCREASED 36 TO MORE THAN 55 BILLION COOPERS SAID US REVENUE WAS 164 BILLION UP 45 THE FIRM DOESN'T DISCLOSE PROFIT AND DECLINED TO CHARACTERIZE IT EUGENE M FREEDMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER ATTRIBUTED THE FIRM'S US RESULTS PARTLY TO EFFORTS INITIATED LAST YEAR TO GENERATE NEW BUSINESS AND STRENGTHEN EXISTING CLIENT RELATIONSHIPS 9312210054 931221 YOUR MONEY MATTERS TAPPING YOUR RETIREMENT ASSETS A FEW STEPS CAN HELP SIMPLIFY RETIREES' INVESTMENT DECISIONS BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL IN THE PAST MANY RETIREES TOOK THE SIMPLE APPROACH WHEN IT CAME TO INVESTING A LARGE LUMPSUM PAYMENT FROM A COMPANY RETIREMENT PLAN THEY JUST PLOPPED IT ALL INTO A MUNICIPALBOND PORTFOLIO ROUGHLY THE SIZE OF IDAHO THESE DAYS HOWEVER INVESTING IN RETIREMENT ISN'T SO SIMPLE TODAY'S RETIREE NOT ONLY MAY BE RECEIVING A LARGE LUMPSUM DISTRIBUTION FROM A COMPANY PENSION OR RETIREMENT PLAN BUT ALSO MAY HAVE OTHER RETIREMENT HOLDINGS INCLUDING INDIVIDUAL RETIREMENT ACCOUNTS SHARES OF AN EMPLOYER'S STOCK AND WHATEVER STRAY MUTUAL FUNDS STOCKS AND BONDS THE PERSON BOUGHT OVER THE YEARS INVESTING ALL THAT MONEY SO THAT IT GENERATES A LIVABLE STREAM OF INCOME AND CONTINUED SAVINGS FOR LATER YEARS REQUIRES CAREFUL COORDINATION THIS IS AFTER ALL PROBABLY THE LARGEST PILE OF MONEY MOST PEOPLE HAVE EVER HAD TO HANDLE BUT THERE ARE SOME STRAIGHTFORWARD STEPS TO TAKE THAT CAN MAKE THOSE INVESTMENT DECISIONS MANAGEABLE FINANCIAL ADVISERS SAY AVOID ANY RUSH FIRST THEY SAY DON'T RUSH WHILE YOU DO NEED TO HAVE THE MONEY TRANSFERRED DIRECTLY INTO AN IRA IN ORDER TO CONTINUE TO DEFER TAXES ON YOUR NEST EGG DON'T FEEL PRESSURED TO SELECT INVESTMENTS INSTEAD PARK THE MONEY IN A MONEYMARKET ACCOUNT AND TAKE A FEW WEEKS OR MONTHS TO MAP OUT YOUR INVESTING STRATEGY BEGIN WITH A THOROUGH INVENTORY OF WHAT YOU ALREADY HAVE SQUIRRELED AWAY ONLY AFTER YOU'VE DONE THIS CAN YOU MAKE AN INFORMED CHOICE ABOUT THE TYPE OF INVESTMENTS TO BUY AND WHAT TO SELL IF YOUR RETIREMENT PORTFOLIO LOOKS LIKE A SUBURBAN GARAGE STUFFED FULL OF JUNK YOU ACQUIRED OVER THE YEARS THINKING YOU COULD REALLY USE IT SOMEDAY YOU SHOULD SORT THE MESS INTO COHESIVE PILES HOW MUCH IS INVESTED FOR INCOME HOW MUCH FOR GROWTH THIS CRITICAL STEP IS OFTEN OVERLOOKED BY PEOPLE BUT THERE'S A REAL NEED TO GET SOME CONSOLIDATION AND SIMPLIFICATION SAYS MARK SKINNER PRESIDENT OF COPELAND COS AN EAST BRUNSWICK NJ SUBSIDIARY OF TRAVELERS CORP IN GENERAL ADVISERS SAY RETIREES STILL NEED TO KEEP A LARGE PERCENTAGE OF THEIR HOLDINGS IN STOCK INVESTMENTS AN OLD RULE OF THUMB SUGGESTS THAT THE PERCENTAGE OF YOUR INVESTMENTS IN EQUITYBASED INVESTMENTS SHOULD BE THE INVERSE OF YOUR AGE SUBTRACTED FROM 100 SO IF YOU'RE 60 YEARS OLD 40 SHOULD BE IN GROWTH VEHICLES MR SKINNER SAYS UNFORTUNATELY FEW RETIREES DO THIS THE MISTAKE MOST RETIREES MAKE IS THEY CONVERT EVERYTHING INTO INCOMEPRODUCING INVESTMENTS AND FORGET ABOUT THE INFLATION FACTOR SAYS STEPHEN B SAWTELLE DIVISION MANAGER AT WADDELL & REED FINANCIAL SERVICES IN HAMDEN CONN THAT'S NOT SURPRISING TO MOST RETIREES INVESTING FOR GROWTH SEEMS A LOT LIKE LEANING INTO AN ONCOMING PUNCH DUMB BUT THAT'S A FEAR RETIREES NEED TO GET BEYOND PEOPLE WORRY ABOUT MARKET RISK BUT THEY FORGET ABOUT INFLATION RISK SAYS MR SKINNER MOREOVER THERE ARE WAYS TO REDUCE VOLATILITY SO THAT RETIREES CAN SLEEP AT NIGHT WITHOUT HAVING NIGHTMARES ABOUT FLUCTUATIONS IN THE DOW JONES INDUSTRIAL AVERAGE FOR STARTERS DIVERSIFYING AMONG DIFFERENT INDUSTRY SECTORS AIRLINES COMPUTERS PHARMACEUTICALS STEEL AND SO FORTH CAN SMOOTH OUT THE RIDE SINCE DIFFERENT INDUSTRIES TEND TO MOVE AT VARIED PACES THROUGHOUT THE MARKET CYCLES PEOPLE CAN ALSO DIVERSIFY ACROSS DIFFERENT TYPES OF STOCK INVESTMENTS LESSRISKY STOCK MUTUAL FUNDS INCLUDE EQUITY INCOME FUNDS WHICH INCLUDE STOCKS THAT PAY HIGHERTHANAVERAGE DIVIDENDS THUS CUSHIONING THE VALUE OF THESE FUNDS IF STOCK PRICES FALL RETIREES CAN ALSO REDUCE THEIR MARKET EXPOSURE AND INCREASE DIVERSIFICATION BY SELLING SOME OF THEIR EMPLOYER'S STOCK HOW WOULD YOU FEEL ABOUT HAVING ALL YOUR MONEY IN IBM RIGHT NOW ASKS MR SAWTELLE ALL COMPANY STOCK GOES UP AND DOWN HE ADVISES SELLING SHARES YOU BOUGHT WITH AFTERTAX MONEY FIRST BECAUSE THE TAXES WILL BE LOWER A MORE COMPLEX INVESTING STEP FOR RETIREES TO TAKE BUT A CRUCIAL ONE IS TO FIGURE OUT WHETHER THEY ARE BETTER OFF PUTTING SOME TYPES OF INVESTMENTS IN THEIR TAXDEFERRED ACCOUNTS SUCH AS IRAS OR HAVING THOSE INVESTMENTS IN THEIR TAXABLE ACCOUNTS ALL THINGS BEING EQUAL YOU'D WANT TO KEEP GROWTH INVESTMENTS OUTSIDE YOUR TAXSHELTERED RETIREMENT ACCOUNTS AND INCOME INVESTMENTS IN IRA SAYS MR SAWTELLE FEW INVESTORS REALIZE THAT WHEN THEY PUT CAPITALGAINSGENERATING INVESTMENTS IN AN IRA THEY FOREVER LOSE THE ABILITY TO PAY LOWER CAPITALGAINS TAXES ON THE GAINS WHETHER IN VARIABLE ANNUITIES STOCKS OR OTHER INVESTMENTS GAINS ON IRA INVESTMENTS WILL BE TAXED AT THE HIGHER ORDINARY INCOMETAX RATE RATHER THAN THE MORE FAVORABLE CAPITALGAINS RATE WHILE THE MAXIMUM FEDERAL INCOMETAX RATE ON ORDINARY INCOME IS 396 THE TOP CAPITALGAINS RATE IS 28 SIMILARLY SOME PEOPLE MAKE THE MISTAKE OF PUTTING INVESTMENTS THAT ALREADY HAVE SOME TYPE OF BUILTIN TAXDEFERRAL INTO THEIR IRAS FOR EXAMPLE STOCKINDEX FUNDS BY THEIR NATURE HAVE TAXDEFERRAL SINCE INVESTORS DON'T PAY CAPITALGAINS TAX UNTIL THEY SELL THEIR SHARES INVESTORS DO OF COURSE PAY INCOME TAXES ON THE DIVIDENDS GENERATED EACH YEAR AND CAPITALGAINS TAX ON ANY CAPITALGAINS DISTRIBUTIONS THE FUNDS MAY DECLARE A MORE COMMON MISTAKE IS TO PUT VARIABLE ANNUITIES INTO IRAS A VARIABLE ANNUITY IS LIKE A SMALL FAMILY OF STOCK AND BOND MUTUAL FUNDS WRAPPED INTO A TAXDEFERRED INSURANCECOMPANY WRAPPER THIS INSURANCE WRAPPER COSTS AN EXTRA 125 A YEAR OR MORE WHICH IS A BIG DRAG ON RETURNS BY ITS VERY NATURE AN ANNUITY ACCOUNT IS TAXDEFERRED SO WHY PUT IT IN AN IRA ASKS MR SAWTELLE IT'S LIKE USING AN UMBRELLA INDOORS HE ALSO POINTS OUT THAT RETIREES MAY WANT TO AVOID LOCKING UP THEIR MONEY IN VARIABLE ANNUITIES WHICH TYPICALLY HAVE SURRENDER PENALTIES LASTING SEVEN YEARS OR LONGER ANOTHER DRAWBACK TO VARIABLE ANNUITIES WHETHER IN IRAS OR OUTSIDE THEM IS THAT ALL THE EARNINGS WILL BE TAXED AS REGULAR INCOME WHEN TAKEN OUT THE ULTIMATE FOLLY IRA INVESTORS IS MUNICIPAL BONDS IT DOESN'T MATTER IF THE INTEREST THEY PAY IS TAXEXEMPT THE BONDS ARE IN AN IRA SO THAT INTEREST WILL BECOME TAXABLE WHEN TAKEN OUT A RETIREE WITH 5000000 INVESTED IN AN IRA WOULD BE ABLE TO WITHDRAW 21258 A YEAR FOR THE NEXT 35 YEARS IF THE IRA INVESTMENTS EARN A 10 ANNUAL RETURN BUT IF THE RETURN WERE ONLY 5 THE RETIREE COULD WITHDRAW ONLY 11210 A YEAR OR SEE THE IRA DEPLETED IN LESS THAN 35 YEARS 9312210053 931221 FINANCING BUSINESS REPAP ENTERPRISES INC REPAP ENTERPRISES INC MONTREAL SAID IT PLANS TO RAISE 125 MILLION TO 150 MILLION CANADIAN DOLLARS US93 MILLION TO 112 MILLION THROUGH AN ISSUE OF SUBORDINATE VOTING SHARES IN CANADA THE ISSUE IS INTENDED TO HELP EASE THE FORESTPRODUCTS COMPANY'S HEAVY DEBT BURDEN IT WILL ALSO TRIGGER A LOSS OF VOTING CONTROL BY GEORGE PETTY CHAIRMAN AND CHIEF EXECUTIVE OFFICER UPON CLOSING OF THE OFFERING ANTICIPATED FOR LATE JANUARY REPAP'S MULTIPLE VOTING SHARES WOULD CARRY ONE VOTE EACH MR PETTY CURRENTLY HAS ABOUT A 33 EQUITY STAKE BUT ABOUT AN 85 VOTING INTEREST REPAP ALSO SAID ITS BOARD IS CONSIDERING ADOPTION OF A SHAREHOLDERS' RIGHTS PROTECTION PLAN TERMS OF WHICH HAVEN'T BEEN COMPLETED REPAP'S ANNOUNCEMENT CAME AFTER THE STOCK MARKET'S CLOSE IN TRADING ON THE NASDAQ STOCK MARKET YESTERDAY REPAP SHARES CLOSED AT 259 A SHARE UP 3125 CENTS 9312210052 931221 BUSINESS BRIEF GREAT ATLANTIC & PACIFIC TEA CO FISCAL THIRDQUARTER PROFIT DECLINED 10 ON LOWER SALES GREAT ATLANTIC & PACIFIC TEA CO MONTVALE NJ REPORTED A 10 DROP IN FISCAL THIRDQUARTER NET INCOME REFLECTING LOWER SAMESTORE SALES AS WELL AS THE EFFECT OF A STRIKE NET INCOME FOR THE QUARTER ENDED DEC 4 WAS 379000 OR ONE CENT A SHARE COMPARED WITH 422000 OR ONE CENT A SHARE A YEAR EARLIER THE COMPANY SAID LOWER SALES VOLUME AND THE COSTS INVOLVED WITH CLOSING CERTAIN STORES IN CANADA DUE TO A STRIKE REDUCED EARNINGS BY SIX CENTS A SHARE OVERALL SALES FELL SLIGHTLY TO 234 BILLION FROM 238 BILLION THE GROCERYSTORE CHAIN SAID SAMESTORE SALES EXCLUDING 63 CLOSED STORES AFFECTED BY THE STRIKE WERE 1 BEHIND LAST YEAR FOR THE THIRD QUARTER AND 11 BEHIND LAST YEAR FOR THE 40 WEEKS TO DATE THE COMPANY OPERATED 1191 STORES AT THE END OF THE LATEST QUARTER 9312210051 931221 TECHNOLOGY BRIEF AFFYMAX NV BIOTECH CONCERN GETS PATENT FOR PEPTIDE TECHNOLOGY AFFYMAX NV SAID IT RECEIVED A US PATENT FOR A TECHNOLOGY USED TO GENERATE AND SCREEN PEPTIDES WHICH ARE SMALL PROTEINS USED IN DEVELOPING DRUGS THE BIOTECHNOLOGY COMPANY WHICH IS BASED IN THE NETHERLANDS AND PERFORMS MOST OF ITS RESEARCH IN PALO ALTO CALIF ALSO SAID IT HAS ACQUIRED AN EXCLUSIVE LICENSE TO ANOTHER PATENT FROM SALK INSTITUTE OF BIOTECHNOLOGY/INDUSTRIAL ASSOCIATES INC OF SAN DIEGO CALIF THE PATENT COVERS METHODS FOR CREATING VIRUSES WITH NEW BIOLOGICAL PROPERTIES TERMS OF THE LICENSING AGREEMENT WEREN'T DISCLOSED AFFYMAX'S SHARES ROSE 50 CENTS TO 1575 ON THE NASDAQ STOCK MARKET YESTERDAY 9312210050 931221 CANADA CURTAILS FISHING ON ITS EAST COAST FOR 1994 ST JOHN'S NEWFOUNDLAND THE CANADIAN GOVERNMENT ORDERED A SUSPENSION OF COD FISHING NEXT YEAR IN MOST AREAS OFF CANADA'S EAST COAST THE GOVERNMENT ALSO IMPOSED TIGHT LIMITS ON FISHING FOR OTHER MAJOR EAST COAST SPECIES INCLUDING POLLOCK HADDOCK REDFISH AND PLAICE THE CUTBACK WAS ORDERED TO HELP REPLENISH FISH STOCKS THAT SCIENTISTS SAY HAVE BEEN DEPLETED BY FISHING BY PREDATORS AND BY A COOLING TREND IN THE REGION'S WATERS ACCORDING TO FISHERIES MINISTER BRIAN TOBIN FOR THE NEARLY FIVE CENTURIES SINCE EUROPEAN EXPLORERS FIRST CAME TO OUR SHORES THERE HAS BEEN A GREAT COD FISHERY OFF OUR COAST HOWEVER HE SAID IN 1994 THERE WILL BE VIRTUALLY NONE MR TOBIN SAID THE FISHING CURBS WILL COST THE JOBS OF 5000 FISHERMEN AND FISHINDUSTRY WORKERS SINCE 1991 THE INDUSTRY HAS LOST ALMOST 35000 WORKERS BECAUSE OF THE DECLINE IN FISH STOCKS HE SAID 9312210049 931221 BUSINESS BRIEF BELL INDUSTRIES INC COMPANY EXPECTS 40 RISE IN ELECTRONICS SALES IN 1994 BELL INDUSTRIES INC LOS ANGELES SAID IT EXPECTS SALES OF ITS ELECTRONICSDISTRIBUTION OPERATIONS TO INCREASE BY AT LEAST 40 TO MORE THAN 400 MILLION IN 1994 COMPARED WITH ESTIMATED SALES OF 280 MILLION FOR 1993 THE COMPANY SAID IT EXPECTS TO HIRE 50 NEW SALESPEOPLE IN THE NEXT THREE MONTHS TO SUPPORT THE GROWTH THEODORE WILLIAMS PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID ORDERS AND SHIPMENTS ARE RUNNING WELL AHEAD OF THE SAME PERIOD LAST YEAR CONTINUING A TREND THAT STARTED IN THE QUARTER ENDED JUNE 30 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BELL'S STOCK CLOSED AT 18125 UP 375 CENTS 9312210048 931221 ADMINISTRATION TO SEEK RISE IN FEES FOR GUN DEALERS WASHINGTON THE CLINTON ADMINISTRATION WILL PROPOSE A SHARP INCREASE IN THE FEDERAL LICENSING FEE FOR GUN DEALERS IN AN EFFORT TO REDUCE THE NUMBER OF PEOPLE SELLING WEAPONS TREASURY SECRETARY LLOYD BENTSEN SAID YOU ARE GOING TO SEE AN INCREASE IN THE LICENSING FEES FOR THE SELLING OF GUNS MR BENTSEN SAID IN AN INTERVIEW WITH THE ASSOCIATED PRESS SINCE 1968 GUN DEALERS HAVE PAID 30 FOR A THREEYEAR LICENSE BUT A RECENTLY ENACTED LAW INCREASES THAT TO 200 FOR THREE YEARS FOR NEW LICENSES AND SETS THE RENEWAL FEE AT 90 FOR THREE YEARS MR BENTSEN SAID THAT THE ADMINISTRATION IS STUDYING A LARGER INCREASE AS PART OF A BROAD CRACKDOWN ON VIOLENT CRIME AND PLANS TO MAKE ITS PROPOSAL IN A REPORT NEXT MONTH HE WOULDN'T SAY HOW HIGH THE FEE MIGHT GO ANY INCREASE WOULD HAVE TO BE APPROVED BY CONGRESS THE TREASURY'S BUREAU OF ALCOHOL TOBACCO AND FIREARMS SAID THE AGENCY ESTIMATES THAT BOOSTING THE ANNUAL FEE TO 500 WOULD CUT THE NUMBER OF LICENSED GUN DEALERS TO A MORE MANAGEABLE 60000 TO 70000 FROM THE CURRENT 250000 9312210047 931221 BUSINESS BRIEF QUICK & REILLY GROUP INC FISCAL THIRDPERIOD PROFIT SOARED 82 REVENUE 54 QUICK & REILLY GROUP INC SAID EARNINGS SOARED 82 IN THE THIRD QUARTER ENDED NOV 26 AND THE DISCOUNT BROKERAGE FIRM BOOSTED ITS QUARTERLY DIVIDEND AND VOTED A SPECIAL YEAREND PAYMENT AS WELL NET INCOME ROSE TO 102 MILLION OR 95 CENTS A SHARE FROM 56 MILLION OR 54 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 54 TO 687 MILLION FROM 446 MILLION THE NEW YORK COMPANY'S QUARTERLY DIVIDEND WILL INCREASE TO 12 CENTS FROM 10 CENTS PAYABLE APRIL 1 TO STOCK OF RECORD MARCH 1 THE SPECIAL YEAREND DIVIDEND OF 15 CENTS A SHARE IS PAYABLE ON THE SAME DATES DIRECTORS ALSO VOTED A 5 STOCK DIVIDEND PAYABLE JAN 31 TO STOCK OF RECORD DEC 31 QUICK & REILLY'S STOCK FELL 125 CENTS OR 04 TO CLOSE AT 3525 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9312210046 931221 BUSINESS BRIEF MCI COMMUNICATIONS CORP FIVE MAJOR CUSTOMERS SIGN TELECOMMUNICATIONS PACTS MCI COMMUNICATIONS CORP BASED IN WASHINGTON SAID IT SIGNED NEW AGREEMENTS WITH FIVE MAJOR CUSTOMERS EXCEEDING 175 MILLION TO PROVIDE A WIDE RANGE OF TELECOMMUNICATIONS SERVICES THE CUSTOMERS INCLUDE AMR CORP THE FORT WORTH TEXAS PARENT OF AMERICAN AIRLINES GERMAN TELECOMMUNICATIONS AND ELECTRONICS MAKER SIEMENS AG CAPITAL CITIES/ABC INC THE NEW YORK PUBLISHING AND ENTERTAINMENT COMPANY MARUBENI AMERICA CORP A US UNIT OF MARUBENI CORP A JAPANESE TRADING COMPANY AND COMDISCO INC ROSEMONT ILL 9312210045 931221 BUSINESS BRIEF WARNERLAMBERT CO COMPANY SIGNS AGREEMENT FOR VENTURE WITH WELLCOME WARNERLAMBERT CO AND WELLCOME PLC SIGNED THE FIRST OF A SERIES OF PLANNED AGREEMENTS TO JOINTLY DEVELOP AND MARKET CONSUMER HEALTH PRODUCTS THE AGREEMENT ESTABLISHES THE US UNIT OF WARNER WELLCOME CONSUMER HEALTH PRODUCTS TO BEGIN OPERATING NEXT MONTH THE UNIT WILL MARKET A VARIETY OF OVERTHECOUNTER PRODUCTS MADE BY BOTH COMPANIES INCLUDING A VERSION OF ZOVIRAX WELLCOME'S HERPES MEDICATION THE FOOD AND DRUG ADMINISTRATION IS NOW CONSIDERING AN APPLICATION TO CONVERT THE PRESCRIPTION ZOVIRAX FOR THE OVERTHECOUNTER MARKET WARNERLAMBERT BASED IN MORRIS PLAINS NJ AND WELLCOME LONDON SIGNED A LETTER OF INTENT IN JULY CREATING THEIR ALLIANCE UNDER THE AGREEMENT WARNERLAMBERT WILL RECEIVE ABOUT 70 AND WELLCOME ABOUT 30 OF THE VENTURE'S PROFITS EXCEPT IN THE CASE OF ZOVIRAX WHERE WELLCOME WILL RECEIVE THE MAJORITY SHARE WARNERLAMBERT SAID 9312210044 931221 INTERNATIONAL BRIEF DAIMLERBENZ AG COMPANY'S HOLDERS BACK MERGER WITH HOLDING FIRM SHAREHOLDERS OF DAIMLERBENZ AG APPROVED A MERGER WITH MERCEDES AG HOLDING RETROACTIVE TO SEPT 30 A MAJORITY OF 75 OF THE CAPITAL REPRESENTED WAS NEEDED THE MOVE FOLLOWS A SIMILAR VOTE BY MAH SHAREHOLDERS FRIDAY MAH WAS ESTABLISHED IN 1976 TO PREVENT A HOSTILE TAKEOVER OF DAIMLERBENZ AND IS A HOLDING COMPANY WITH NO OPERATING DIVISIONS IT OWNS 2523 OF DAIMLER GERMANY'S LARGEST INDUSTRIAL GROUP IN A SPEECH ASKING SHAREHOLDERS TO APPROVE THE MEASURE EDZARD REUTER CHAIRMAN OF DAIMLER'S MANAGEMENT BOARD SAID THE STRUCTURE NO LONGER IS NEEDED AND ACTS AS A DISADVANTAGE WHEN DAIMLER ISSUES NEW SHARES 9312210043 931221 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS DEC 21JAN 3 THREE INDIANA MUSEUMS PAY TRIBUTE TO THE ACQUISITIVE INSTINCTS OF THE ALUMS OF CULVER ACADEMIES THE INDIANAPOLIS MUSEUM OF ART SHOW OF 19TH AND 20THCENTURY AMERICAN PAINTINGS INCLUDES OILS AND WATERCOLORS BY SUCH AMERICAN MASTERS AS THOMAS HART BENTON WINSLOW HOMER AND FREDERIC REMINGTON THE IMACOLUMBUS GALLERY 390 THE COMMONS FEATURES PAINTINGS AND SCULPTURES BY ABSTRACT EXPRESSIONISTS MARK ROTHKO AND ADOLPH GOTTLIEB COLORFIELD ARTIST KENNETH NOLAND AND POP ARTISTS ANDY WARHOL AND WAYNE THIEBAUD THE EITELJORG MUSEUM OF AMERICAN INDIAN AND WESTERN ART 500 W WASHINGTON ST SHOWCASES AMERICAN WEST AND NATIVE AMERICAN ART RANGING FROM ALBERT BIERSTADT PAINTINGS TO CROW BEADED HORSE TRAPPINGS THE BROOKLYN MUSEUM'S NEW WEST WING DESIGNED BY MR ISOZAKI AND JAMES STEWART POLSHEK OPENS WITH A MAJOR RETROSPECTIVE OF THE WORK OF MR ISOZAKI HIMSELF TRACING HIS 30YEAR CAREER WITH MODELS SKETCHES SILKSCREEN PRINTS DRAWINGS AND COMPUTER RENDERINGS THIS EXHIBIT OFFERS 36 EXAMPLES OF A LITTLEKNOWN ASPECT OF RENAISSANCE AND BAROQUE ART MUCH OF THIS SCULPTURE CAME INTO THE US DURING THE EARLY 20TH CENTURY WHEN THE STYLE WAS POPULAR AMONG COLLECTORS AFTER CLOSING IN NEW YORK THE SHOW TRAVELS TO THE MEADOWS MUSEUM SOUTHERN METHODIST UNIVERSITY DALLAS JAN 28MARCH 28 AND THE LOS ANGELES COUNTY MUSEUM APRIL 21JUNE 26 LARGESCALE MODEL TRAINS TRAVELING THROUGH FANTASY LANDSCAPES ARE THE CENTERPIECE OF THE FIVEWEEK HOLIDAY WONDERLAND AT THE NEW YORK BOTANICAL GARDEN OTHER HIGHLIGHTS INCLUDE A COLLECTION OF MINIATURE TREES DECORATED BY NEW YORK CITY'S LEADING DESIGNERS AS WELL AS STORYTELLING AND CAROLING ON SUNDAY AFTERNOONS IL TROVATORE IS THE FIRST PRODUCTION OF LYRIC OPERA'S VERDI CRITICAL EDITION PROJECT WHICH IS DEVOTED TO STRIPPING AWAY THE ERRORS THAT HAVE SEEPED INTO THE MASTER'S 31 SCORES SINCE THEIR PREMIERES RUSSIAN SOPRANO LYUBOV KAZARONOVSKAYA MAKES HER LYRIC DEBUT AS LENORA WITH TENOR CHRIS MERRITT SINGING MANRICO MEZZOSOPRANO DOLORA ZAJICK AS AZUCENA AND BARITONE PAOLO GAVANELLI AS COUNT DI LUNA ANTONIO PAPPANO CONDUCTS SONJA FRISELL DIRECTS CIVIC OPERA HOUSE MADISON AND WACKER DEC 21 JAN 3 7 11 15 19 AND 22 312 3322244 THE MET TRIES TO FRESHEN UP ITS DREARY OLD PRODUCTION OF BERLIOZ'S LES TROYENS WITH NEW SINGERS MOST IMPORTANTLY THE FRENCH SOPRANO FRANCOISE POLLET WHO SINGS CASSANDRA MARIA EWING WILL TRY DIDO GARY LAKES SINGS AENEAS AND THOMAS HAMPSON IS COROEBUS JAMES LEVINE CONDUCTS LINCOLN CENTER 66TH STREET AND BROADWAY DEC 23 AND 27 JAN 1 4 8 AND 13 212 3626000 9312210042 931221 ECONOMY COMMERCE OFFICIAL URGES JAPAN TO FOCUS ON TRADE TOKYO JAPAN'S LEADERS MAY SOON FACE TROUBLE IF THEY IGNORE TRADE TENSIONS WITH THE US A SENIOR CLINTON ADMINISTRATION OFFICIAL WARNED THE BIGGEST DANGER ON THE HORIZON IS THAT THERE IS A DISPARITY IN FOCUS AND A DISPARITY IN PRIORITIES BETWEEN THE US AND JAPAN JEFFREY E GARTEN UNDERSECRETARY OF COMMERCE FOR INTERNATIONAL TRADE TOLD REPORTERS HERE MONDAY THE LEVEL OF ATTENTION IN TOKYO TO TRADE ISSUES IS MUCH LESS THAN IT IS IN WASHINGTON ADDED MR GARTEN WHO IS ATTENDING TRADE TALKS HERE THIS WEEK PRESIDENT CLINTON AND PRIME MINISTER MORIHIRO HOSOKAWA ARE TO MEET IN WASHINGTON ON FEB 11 TO ROUND OUT THE FRAMEWORK FOR USJAPAN ECONOMIC TIES THIS SUMMIT IS GOING TO SET THE TONE FOR USJAPAN RELATIONS FOR POSSIBLY THE ENTIRE CLINTON ADMINISTRATION MR GARTEN SAID IF IT GOES WELL I THINK THAT THE TONE OF THE RELATIONSHIP WILL BE MUCH MORE COOPERATIVE IF IT GOES BADLY JAPAN COULD COLOR THE ENTIRE US TRADE POLICY FOR THE NEXT FOUR YEARS IN A VERY NEGATIVE WAY A JAPANESE FOREIGN MINISTRY OFFICIAL DISPUTED MR GARTEN'S ASSESSMENT THAT THE FRAMEWORK TALKS HAVE MADE LITTLE PROGRESS HE ADDED THAT MR HOSOKAWA HAS ADOPTED MANY TRADE POLICIES DESIRED BY THE US INCLUDING THE POLITICALLY DIFFICULT DECISION TO END JAPAN'S LONGSTANDING BAN ON RICE IMPORTS 9312210041 931221 LEISURE & ARTS BOOKSHELF FOR YOUR TECHNICAL TOT BY JIM HOLT KIDS MAKE EXCELLENT SCIENTISTS THEY HAVE AN UNERRING INSTINCT FOR GETTING TO THE BOTTOM OF THINGS AS ANY PARENT WHO HAS ATTEMPTED TO ANSWER THEIR ENDLESS WHY WHY WHY QUERIES CAN ATTEST THEY ARE BLESSEDLY FREE OF THE PRECONCEPTIONS THAT BLINKER GROWNUPS AND WHILE THE LITTLE ONES DO HAVE A REGRETTABLE TENDENCY TO CARRY OUT UNAUTHORIZED EXPERIMENTS THEY RARELY FALSIFY THEIR RESULTS THOUGH BUDDING EINSTEINS AND CURIES SEEM TO BE CHOOSING THEIR FIELDS OF RESEARCH EARLIER AND EARLIER THESE DAYS THE PRESCHOOLER WHO LIVES NEXT DOOR TO ME IS ALREADY PRETTY SURE THAT HIGHENERGY PARTICLE PHYSICS IS HER THING THEY'LL STILL WELCOME A GENERAL REFERENCE BOOK OR TWO UNDER THE CHRISTMAS TREE A GOOD CHOICE IN THIS CATEGORY FOR CHILDREN OF ALL AGES IS THE DORLING KINDERSLEY SCIENCE ENCYCLOPEDIA 448 PAGES 3995 ORGANIZED INTO A DOZEN SECTIONS RANGING FROM SPACE TO SOUND AND LIGHT TO HOW LIVING THINGS WORK IT IS PACKED WITH FULLCOLOR ILLUSTRATIONS MAPS AND CHARTS AND ITS ADMIRABLY CLEAR TEXT IS FESTOONED WITH FACT BOXES AND THUMBNAIL SCIENTIFIC BIOGRAPHIES IF THERE HAS EVER BEEN A KID WHO DID NOT WANT TO KNOW WHETHER MOTHS TASTE GOOD WHICH SPIDER HAS THE HAIRIEST LEGS AND WHY CROCODILES SHED TEARS AS THEY DEVOUR THEIR PREY I HAVEN'T MET HIM OR HER THE SURPRISING ANSWERS ALONG WITH HUNDREDS OF REALLY COOL ANIMAL CLOSEUPS CAN BE FOUND IN THE Q&A BOOK AMAZING ANIMAL FACTS KNOPF 61 PAGES 18 FOR AGES SIX TO 10 DID YOU KNOW THAT SOME LEOPARDS CAN CHANGE THEIR SPOTS OR THAT OVERHEATED ELEPHANTS COOL THEMSELVES DOWN BY FLAPPING THEIR EARS ROSS PEROT TAKE NOTE FOR THE PRESCHOOL SET TWO ADDITIONS TO MARY LING'S EXTREMELY SWEET SERIES SEE HOW THEY GROW DORLING KINDERSLEY 21 PAGES EACH 795 DESERVE A MENTION THE DELIGHTFUL PHOTOS AND SIMPLE TEXT OF PENGUIN CHRONICLE THAT CREATURE'S DEVELOPMENT FROM THE MOMENT IT CHIPS ITS WAY OUT OF THE EGG TO ITS FIRST PLUNGE INTO THE SEA AS A FULLY TUXEDOED ADULT WHEREAS GIRAFFE CHARMINGLY SHOWS THAT HEIGHT HAS ITS ADVANTAGES EVEN OUTSIDE OF THE NBA SUPPOSE A BEING FROM OUTER SPACE WERE TO BE SENT TO EARTH WITH THE MISSION OF FINDING OUT HOW THIS ASTONISHING DIVERSITY OF CREATURES EVOLVED THAT IS THE PREMISE OF THEY CAME FROM DNA WH FREEMAN 80 PAGES 1995 SUITABLE FOR GENETICISTSINTRAINING AGES NINE TO 14 WHAT MAKES THE TASK OF THE INQUISITIVE LITTLE ALIEN SKREEG402 ESPECIALLY DIFFICULT IS THAT HE IS BEAMED DOWN INTO A CITY DUMP WHERE THE AVAILABLE CLUES ARE DISCARDED NEWSPAPERS BASEBALL CARDS AD FLIERS AND OTHER UNPROMISING SCRAPS IT IS A TRIBUTE TO HIS INGENUITY AS WELL AS TO AUTHOR BILLY ARONSON'S IMAGINATIVE HUMOR THAT SKREEG EVENTUALLY PIECES TOGETHER AN EASYTOUNDERSTAND PICTURE OF HOW HEREDITY WORKS AND SOMEHOW ENDS UP BECOMING A NATIONAL CELEBRITY IN THE BARGAIN MEDICALLY INCLINED KIDS WHO HAVE OUTGROWN PLAYING DOCTOR WITH THEIR FRIENDS WILL BE GRATEFUL TO RECEIVE HUMAN BODY DORLING KINDERSLEY 64 PAGES 1595 AUTHOR STEVEN PARKER WRITES THAT NEWCOMERS TO ANATOMY MAY BE SURPRISED TO DISCOVER THAT THE BODY'S INTERIOR IS NOT A THICK SOUP OR CONTINUOUS MEATLIKE FLESH BUT THIS HARDLY PREPARES YOU FOR THE STRIKING ILLUSTRATIONS THAT FOLLOW ANATOMICAL MODELS REVEAL THE STRUCTURE OF EVERYTHING FROM THE FINGERNAILS TO THE LUNGS TO THE BRAIN IN EXQUISITE DETAIL AND THE ACCOMPANYING EXPLANATIONS RATE AN A+ FOR CLARITY AND CONCISION UNTIL I GOT MY HANDS ON THIS BOOK I HAD NO IDEA HOW ELEGANTLY SHAPED MY PANCREAS IS ALTHOUGH CHILDREN CAN BE FORMIDABLE THEORETICIANS THEY ARE EVEN MORE ENTHUSIASTIC WHEN IT COMES TO HANDSON EXPERIMENTATION SOMETIMES TO THE CHAGRIN OF THEIR POOR PARENTS OR INDEED THE FAMILY CAT TO CHANNEL THEIR EXPERIMENTAL URGES IN RELATIVELY BENIGN DIRECTIONS GIVE THEM JANICE VANCLEAVE'S 200 GOOEY SLIPPERY SLIMY WEIRD AND FUN EXPERIMENTS WILEY 116 PAGES 1295 IN ADDITION TO TELLING THEM HOW TO SAY SIMULATE A VOLCANIC ERUPTION OR MAKE A BALLOON ROCKET OR GROW PENICILLIN ON BREAD AN EXPERIMENT MOST OF US HAVE CARRIED OUT INADVERTENTLY AT ONE TIME OR ANOTHER IT WILL GIVE THEM A NICE FEEL FOR THE RELATIONSHIP BETWEEN SCIENTIFIC THEORY AND EVIDENCE NOW THAT THE NEARSIGHTED HUBBLE SPACE TELESCOPE HAS BEEN FITTED WITH A PAIR OF CORRECTIVE SPECTACLES ASTRONOMERS CAN SURVEY ALMOST THE ENTIRE KNOWN UNIVERSE WHICH CONSISTS OF AROUND A HUNDRED BILLION GALAXIES IN ADDITION TO OUR OWN MILKY WAY YOUNG READERS WILL GET A HEADY TASTE OF THE VARIETY AND VASTNESS OF THESE GREAT ROTATING STAR CLUSTERS FROM SEYMOUR SIMON'S GALAXIES MORROW 28 PAGES 15 AMONG THE 20 OR SO COLOR PHOTOS IT BOASTS IS A MAGNIFICENT ONE OF OUR NEIGHBORING ANDROMEDA GALAXY THE NUCLEUS OF WHICH IS A BLACK HOLE MILLIONS OF TIMES MORE MASSIVE THAN THE SUN THE RATHER SCARY CONSEQUENCES OF WANDERING TOO CLOSE TO SUCH A COSMIC SINKHOLE ARE VIVIDLY SPELLED OUT IN JOURNEY INTO A BLACK HOLE HARPERCOLLINS 32 PAGES 450 BY FRANKLYN M BRANLEY WITH SPRIGHTLY ILLUSTRATIONS BY MARC SIMONT READERS FROM FOUR TO EIGHT WILL FIND THIS LITTLE BOOK A MARVELOUS INTRODUCTION TO THE LIFE AND DEATH OF STARS AND PARENTS MAY FIND IT A USEFUL DISCIPLINARY AID AS EVERYONE KNOWS NAUGHTY CHILDREN RECEIVE ASHES AND SWITCHES FROM SANTA ON CHRISTMAS MORN BUT THE REALLY NAUGHTY ONES GET SPIRITED OFF BY THE REINDEER AND DEPOSITED IN BLACK HOLES SO BE GOOD FOR GOODNESS' SAKE 9312210040 931221 BUSINESS BRIEF ESTERLINE TECHNOLOGIES CORP FIRM HAD 269 MILLION LOSS IN ITS FISCAL FOURTH QUARTER ESTERLINE TECHNOLOGIES CORP REPORTED A NET LOSS OF 269 MILLION FOR ITS FISCAL FOURTH QUARTER FOLLOWING A 272 MILLION RESTRUCTURING CHARGE IN THE PERIOD WHICH ENDED OCT 31 THE LOSS AMOUNTED TO 408 A SHARE WITH SALES TOTALING 771 MILLION IN THE YEAREARLIER PERIOD THE BELLEVUE WASH AEROSPACEEQUIPMENT MAKER HAD A PROFIT OF 23 MILLION OR 35 CENTS A SHARE ON SALES OF 822 MILLION THE COMPANY HAS BEEN HURT BY A SLOWDOWN IN THE DEFENSE AND AEROSPACE MARKET AS A RESULT OF THE RESTRUCTURING CHARGE ESTERLINE SAID ITS FISCAL 1993 NET LOSS WAS 256 MILLION OR 390 A SHARE ON SALES OF 2851 MILLION IN THE PRIOR FISCAL YEAR ESTERLINE EARNED 5 MILLION OR 76 CENTS A SHARE ON SALES OF 3048 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ESTERLINE SHARES CLOSED AT 7625 DOWN 375 CENTS 9312210039 931221 BUSINESS BRIEF VALERO ENERGY CORP ACCORD IS REACHED TO BUY REST OF VALERO NATURAL GAS VALERO ENERGY CORP SAID IT HAS REACHED A NEW AGREEMENT TO BUY THE REST OF VALERO NATURAL GAS PARTNERS LP FOR 1210 A UNIT OR 1174 MILLION IN OCTOBER VALERO ENERGY AN OIL REFINER SAID ITS BOARD HAD APPROVED A PROPOSAL TO BUY VALERO NATURAL GAS FOR 11 A UNIT OR 1067 MILLION BUT A NUMBER OF UNIT HOLDERS FILED LAWSUITS TO BLOCK THE BUYOUT CLAIMING THE OFFER WAS UNFAIR VALERO ENERGY YESTERDAY SAID THE NEW HIGHER OFFER WAS ACCEPTABLE TO THESE UNIT HOLDERS VALERO ENERGY ALREADY OWNS 49 OF VALERO NATURAL GAS PARTNERS A GASPIPELINE COMPANY THAT ALSO PRODUCES NATURAL GAS LIQUIDS VALERO ENERGY BASED IN SAN ANTONIO SAID ABOUT 185 MILLION COMMON UNITS ARE OUTSTANDING OF WHICH 97 MILLION ARE PUBLICLY TRADED THE OTHER UNITS ARE OWNED BY SUBSIDIARIES OF VALERO ENERGY IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING VALERO ENERGY ROSE 125 CENTS TO 21 A SHARE THE PARTNERSHIP'S UNITS ROSE 375 CENTS TO 11875 THE PURCHASE IS TO BE FINANCED BY THE PROCEEDS OF A CONVERTIBLE PREFERENCE STOCK OFFERING 9312210038 931221 PEPPERAND SALT AND MY TEMPER OFTEN FLARES BUT I NEVER SEE WHO CARES 9312210037 931221 WORLD MARKETS TOKYO SHARES SINK 36 ON FEARS THAT TURMOIL IN POLITICS WILL DELAY ACTIONS TO BOOST ECONOMY BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO TOKYO STOCKS TOOK A 36 DRUBBING MONDAY AS INVESTORS DUMPED SHARES ON CONCERNS THAT POLITICAL TURMOIL WILL DELAY GOVERNMENT MEASURES TO LIFT JAPAN'S ECONOMY OUT OF A SLUMP THE NIKKEI 225STOCK AVERAGE PLUMMETED 64767 POINTS THE LARGEST POINT DROP THIS YEAR TO 1740424 MONDAY'S VOLUME WAS ESTIMATED AT 230 MILLION SHARES DOWN FROM THE 2829 MILLION SHARES TRADED FRIDAY LOSERS OUTNUMBERED WINNERS 947124 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES LOST 4322 POINTS OR 29 TO 144725 THE NIKKEI FELL ON JAPANESE NEWS REPORTS THAT KEY MEMBERS OF JAPAN'S RULING COALITION SEE SNAP ELECTIONS IF PRIME MINISTER MORIHIRO HOSOKAWA FAILS TO ACHIEVE DISPUTED POLITICAL REFORMS BY A JAN 29 DEADLINE THE POLITICAL SITUATION IS TIED INTO THE HEART OF THE MARKET RIGHT NOW CRAIG CHUDLER AN ASSISTANT DIRECTOR OF UBS SECURITIES IN TOKYO SAID THE MAIN CONCERN IS THAT IT WILL AFFECT ECONOMIC POLICY TO FIGHT THE GRINDING DOWNTURN THE NIKKEI RALLIED 46 LAST WEEK ON HOPES THAT MR HOSOKAWA'S GOVERNMENT MIGHT ANNOUNCE ECONOMIC MEASURES INCLUDING AN INCOMETAX CUT PERHAPS AS EARLY AS THIS WEEK BUT GRIM TALK OF DISSOLUTION OF THE DIET OR PARLIAMENT ENDED THE RALLY ON MONDAY PRICES ALSO WERE DRIVEN LOWER BY REPORTS THAT ICHIRO OZAWA A POWER BROKER BEHIND THE RULING COALITION WAS ILL AND CANCELING APPOINTMENTS A SPOKESMAN FOR MR OZAWA DECLINED TO COMMENT ON THE REPORTS INVESTORS' UNEASINESS ABOUT POLITICS PUT A DAMPER ON GOOD NEWS FROM THE CURRENCY MARKET THE DOLLAR CLOSED ABOVE 110 YEN IN TOKYO FOR THE FIRST TIME IN ALMOST SIX MONTHS A STRONGER DOLLAR AGAINST THE YEN USUALLY BOOSTS SHARES OF JAPAN'S MANUFACTURERS BECAUSE IT MAKES THEIR GOODS PRODUCED IN JAPAN LESS EXPENSIVE IN FOREIGN MARKETS BUT POLITICAL UNCERTAINTIES ARE FAR MORE IMPORTANT TO INVESTORS THAN CURRENCY RIGHT NOW SATOSHI SHIMAMOTO SENIOR ECONOMIST AT THE MARKET ADVISORY FIRM MMS INTERNATIONAL SAID FOR ITS PART THE GOVERNMENT SAID IT WAS AWARE OF INVESTORS' CONCERNS ABOUT THE ECONOMY THE CHIEF CABINET SECRETARY MASAYOSHI TAKEMURA WHO IS THE GOVERNMENT'S MAIN SPOKESMAN TOLD REPORTERS AFTER THE CLOSE OF STOCK TRADING THAT THE GOVERNMENT WOULD UNVEIL STIMULATIVE MEASURES IN THE NOT TOO DISTANT FUTURE HE DECLINED TO ELABORATE TRADERS ALSO SAID A DECLINE IN STOCK PRICES WAS INEVITABLE AFTER THE MARKET OVERHEATED LAST WEEK ON FRIDAY YAMAICHI SECURITIES SOLD A NEW 50 BILLIONYEN 454 MILLION FUND THAT PUSHED THE NIKKEI ABOVE 18000 FOR THE FIRST TIME IN MORE THAN A MONTH LONDON STOCKS ROSE TO THE FOURTH STRAIGHT RECORD FINISH ON CONTINUED CONFIDENCE ABOUT THE MARKET'S PROSPECTS FOR NEXT YEAR FRANKFURT SHARES RALLIED 13 ON A BOOST IN MARKET SENTIMENT HONG KONG EQUITIES JUMPED TO A NEW HIGH WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11041 DOWN 080 REFLECTING LOWER ASIA/PACIFIC AND AMERICAN MARKETS AND HIGHER EUROPEAN MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 24021 UP 243 OR 102 WITH DUNLOP OF MALAYSIA POSTING A 32 GAIN IN ITS LOCAL CURRENCY OVERSEAS TRADING STOCKS TRAILED AT 10185 DOWN 337 OR 32 WITH HANWA OF JAPAN SLIDING 12 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 278 POINTS TO 33649 NEAR THE INTRADAY HIGH OF 33690 THE FT 30STOCK INDEX GAINED 118 POINTS TO 25169 VOLUME WAS 7489 MILLION SHARES COMPARED WITH 102 BILLION SHARES IN THE PREVIOUS SESSION FOLLOWING PROFITTAKING PURCHASES LINKED TO STOCKINDEX FUTURES AGAIN LED THE STOCK MARKET HIGHER WITH INSTITUTIONAL INVESTORS CONTINUING TO COMMIT FUNDS TO EQUITIES IN HOPES OF FURTHER BRITISH LENDINGRATE CUTS AND A STRENGTHENING ECONOMIC RECOVERY IN FRANKFURT THE DAX 30STOCK INDEX CLIMBED 2714 POINTS TO 217816 ONLY FRACTIONALLY OFF THE DAY'S HIGH WINNING ISSUES OUTPACED LOSING ISSUES 273 SENTIMENT WAS BOOSTED BY SEVERAL FACTORS INCLUDING DIMINISHING FEARS ABOUT THE POLITICAL POWER IN RUSSIA OF THE HARDLINER VLADIMIR ZHIRINOVSKY AND A REACTION TO FRIDAY'S OPTIONS AND FUTURES EXPIRATION WHICH HELD PRICES DOWN IN PARIS SHARES LEAPED 12 ON OPTIMISM ABOUT EARLY1994 INTERESTRATE CUTS AND ON FUNDS' DRESSING UP THEIR PORTFOLIOS TO IMPROVE YEAREND RESULTS BY BUYING STOCKS THAT HAVE PERFORMED WELL IN AMSTERDAM SHARES ROSE SHARPLY TO NEW PEAKS FOR THIS YEAR ON A STRONGER DOLLAR GAINS FOR OTHER BOURSES AND HIGHER BOND PRICES AS EXPECTATIONS OF LOWER INTEREST RATES FUELED DEMAND FOR FINANCIAL STOCKS THOUGH CHEMICAL ISSUES FELL ON LAST WEEK'S FAILURE BY THE EUROPEAN SECTOR TO CREATE A RESTRUCTURING FUND TO HELP FINANCE CUTS IN BLOATED PRODUCTION CAPACITY IN MADRID STOCKS CLIMBED TO A NEW 1993 HIGH PULLED UP BY BUYING OF CONSTRUCTION AND UTILITIES ISSUES IN ZURICH A WEAK DOLLAR AND DAMPED RATECUT HOPES FAILED TO STEM A MARKET UPTURN AND PRICES ADVANCED BROADLY LED BY CYCLICAL SHARES IN STOCKHOLM SHARES ENDED BROADLY HIGHER LIFTED BY A REBOUND IN THE TELECOMMUNICATIONS SECTOR IN MEXICO CITY SHARES RALLIED 15 TO SCORE A SECOND CONSECUTIVE RECORD HIGH THE GAINS IN LIGHT DEALINGS STEMMED FROM OVERSEAS BUYING SPARKED BY BROKERAGE HOUSES' BULLISH RECOMMENDATIONS FOR MEXICAN BLUE CHIPS THIS FOLLOWED WEEKEND NEWS THAT MEXICO'S TRADE DEFICIT CONTINUED TO NARROW IN HONG KONG THE MARKET'S BULL RUN CONTINUED FOR A THIRD SESSION FUELED BY A CONTINUING FLOOD OF FOREIGN MONEY INTO THE MARKET THE MAIN INDEX JUMPED 23 TO A RECORD BOOSTING THIS YEAR'S GAIN TO 96 THE UTILITY SECTOR SURGED 34 THE PROPERTY SUBINDEX RALLIED 28 AND INDUSTRIALS GAINED 19 WHILE FINANCIAL ISSUES LOGGED A 13 CLIMB IN MANILA STOCKS SOARED 55 IN BRISK TRADING POSTING THE BIGGEST SINGLEDAY GAIN AND THE THIRD CONSECUTIVE ALLTIME HIGH THE MARKET IS UP 124 FOR 1993 BUT IN SEOUL STOCKS DIVED 18 ON A WAVE OF SPECULATION THAT THE STOCK STABILIZATION FUND MIGHT SELL SOME SHAREHOLDINGS THE FUND SET UP IN 1990 TO PROP UP WHAT THEN WAS A SLIDING MARKET BY USING MONEY FROM SECURITIES FIRMS HAS SINCE HELD ITS POSITIONS NEWS REPORTS SAID THE SOUTH KOREAN GOVERNMENT VIEWS THE CURRENT MARKET AS A BIT OVERHEATED IT IS UP 25 THIS YEAR BLUE CHIPS WHICH ACCOUNT FOR MUCH OF THE FUND'S PORTFOLIOS WERE HARDEST HIT BY THE RUMORS 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 9312210036 931221 BUSINESS BRIEF FREEPORTMCMORAN COPPER & GOLD INDONESIAN OPERATING UNIT SELLS SOME NONMINING ASSETS FREEPORTMCMORAN COPPER & GOLD INC SAID ITS INDONESIAN OPERATING UNIT PT FREEPORT INDONESIA CO SOLD SOME NONMINING ASSETS FOR 90 MILLION TO A JOINT VENTURE FREEPORTMCMORAN COPPER IS AN AFFILIATE OF FREEPORTMCMORAN INC BOTH BASED IN NEW ORLEANS MOST OF THE ASSETS SOLD WERE INDONESIAN MULTIFAMILY RESIDENTIAL PROPERTIES THE VENTURE IS TWOTHIRDS OWNED AND OPERATED BY ALATIEF NUSAKARYA CORP AND A THIRD OWNED BY PT FREEPORT PT FREEPORT SAID IT WILL USE THE PROCEEDS FOR GENERAL CORPORATE PURPOSES INCLUDING CAPITAL REQUIREMENTS FOR MINE AND MILL EXPANSION THE COMPANY SAID IT HAS AN AGREEMENT TO SELL ANOTHER 180 MILLION IN NONMINING ASSETS TO THE JOINT VENTURE WITH 90 MILLION EXPECTED TO BE SOLD IN EACH OF 1994 AND 1995 9312210035 931221 INTERNATIONAL BRIEF UNILEVER NV ANGLODUTCH CONCERN SEEKS TO ACQUIRE ICE CREAM MAKER UNILEVER NV THE ANGLODUTCH CONSUMER GOODS GROUP SAID IT IS TRYING TO BUY FRENCH ICE CREAM AND FROZEN FOODS COMPANY ORTIZMIKO FOR A TOTAL OF ABOUT 19 BILLION FRANCS 3258 MILLION UNILEVER HAS A 40 SHARE OF EUROPE'S ICE CREAM MARKET A CONTROLLING STAKE IN ORTIZMIKO FRANCE'S BIGGEST ICE CREAM MANUFACTURER WOULD MAKE UNILEVER THE MARKET LEADER IN FRANCE AS WELL LESS THAN HALF A YEAR AGO UNILEVER BECAME THE LARGEST ICE CREAM SUPPLIER IN THE US WITH ITS ACQUISITION OF THE ICE CREAM BUSINESS OF KRAFT GENERAL FOODS A UNIT OF NEW YORKBASED PHILIP MORRIS CO UNILEVER'S PLAN IS TO BUY 75 OF SAFRAL SA WHICH OWNS 85 OF THE FRENCH FROZEN FOOD AND ICE CREAM GROUP FROM THE ORTIZ FAMILY IT WILL THEN MAKE A PUBLIC OFFER FOR THE 15 OF ORTIZMIKO SHARES TRADED ON THE PARIS STOCK EXCHANGE THE PURCHASE PRICE IS CALCULATED TO INCLUDE ALL OF THE REMAINING 15 OF THE SHARES 9312210034 931221 BUSINESS BRIEF RENTWAY INC PURCHASE OF RENTAL CHAIN SET IN PACT VALUED AT 6 MILLION RENTWAY INC SAID IT AGREED TO ACQUIRE A 22STORE RENTAL CHAIN IN UPSTATE NEW YORK THE TRANSACTION VALUED AT ABOUT 6 MILLION WOULD MORE THAN DOUBLE THE NUMBER OF STORES RENTWAY OPERATES RENTWAY BASED IN ERIE PA HAS 20 RENTTOOWN STORES IN PENNSYLVANIA OHIO AND FLORIDA BILL MORGENSTERN RENTWAY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER DIDN'T DISCLOSE THE NAME OF THE CHAIN HE SAID HOWEVER THAT THE CHAIN'S ANNUAL SALES ARE ABOUT 10 MILLION THIS ACQUISITION WILL DRAMATICALLY CHANGE THE FINANCIAL PROFILE OF OUR COMPANY BY INCREASING REVENUES AND ENABLING US TO TAKE ADVANTAGE OF EFFICIENCIES OF SCALE MADE POSSIBLE THROUGH OUR INFRASTRUCTURE MR MORGENSTERN SAID HAD THE TWO COMPANIES BEEN COMBINED THIS PAST YEAR JOINT REVENUES WOULD HAVE EXCEEDED 18 MILLION SINCE GOING PUBLIC FOUR MONTHS AGO RENTWAY HAS OPENED A NEW STORE IN PITTSBURGH AND SIGNED TWO NEW LEASES FOR STORES IN ROCHESTER NY 9312210033 931221 BUSINESS BRIEF INTERGROUP HEALTHCARE CORP COMPANY AGREES TO ACQUIRE UTAH INSURER FOR 17 MILLION INTERGROUP HEALTHCARE CORP TUCSON ARIZ SAID IT SIGNED AN AGREEMENT TO ACQUIRE GEM INSURANCE CO A SALT LAKE CITY HEALTH INSURANCE COMPANY FOR ABOUT 17 MILLION THE PURCHASE WILL BE MADE IN CASH OR A COMBINATION OF CASH AND STOCK INTERGROUP SAID THE STOCK PORTION WOULD AMOUNT TO 20 OF THE PRICE THE COMPANY SAID SHARES OF INTERGROUP A HEALTHCARE SERVICES PROVIDER ROSE 25 CENTS TO 4575 IN NASDAQ STOCK MARKET TRADING THE COMPANY HAS ABOUT 95 MILLION SHARES OUTSTANDING INTERGROUP SAID IT PLANS TO OPERATE GEM AS A SEPARATE DIVISION SPECIALIZING IN PROVIDING INSURANCE TO SMALL EMPLOYERS INTERGROUP SAID IT IS GEARING UP TO OFFER INDIVIDUALS AND BUSINESSES IN UTAH A FULL RANGE OF HEALTHCARE OPTIONS FROM TRADITIONAL INSURANCE TO HEALTH MAINTENANCE ORGANIZATIONS 9312210032 931221 BUSINESS BRIEF FARRAGUT MORTGAGE CO PLANNED MERGER WITH KISLAK IS CALLED OFF AFTER PROBLEMS FARRAGUT MORTGAGE CO SAID IT TERMINATED ITS AGREEMENT TO MERGE WITH CLOSELY HELD JI KISLAK INC BECAUSE IT COULDN'T COMPLETE THE TRANSACTION THIS YEAR FARRAGUT OF MANSFIELD MASS ALSO SAID THAT IT HAS RETAINED COHANE RAFFERTY SECURITIES TO HELP SELL ITS MORTGAGESERVICING PORTFOLIO PROCEEDS WILL BE USED TO RETIRE DEBT FARRAGUT HAD ANNOUNCED PLANS FOR A MERGER WITH KISLAK A MIAMI LAKES FLA MORTGAGEBANKING COMPANY IN JULY THE MERGER FOR WHICH THE COMPANIES WOULDN'T DISCLOSE A VALUE WAS DESIGNED AS A POOLING OF INTERESTS FARRAGUT SAID EFFORTS TO STRUCTURE THE MERGER IN THAT FASHION CAUSED COMPLICATIONS AND DELAYS IT SAID THAT EXTENDING THE AGREEMENT COULD PROVE COSTLY AND ULTIMATELY NOT IN THE BEST INTERESTS OF FARRAGUT'S SHAREHOLDERS IN TRADING ON THE AMERICAN STOCK EXCHANGE YESTERDAY FARRAGUT SHARES CLOSED UP 25 CENTS AT 2 9312210031 931221 INTERNATIONAL BRITAIN'S GDP RISES LONDON BRITAIN'S GROSS DOMESTIC PRODUCT ROSE AN UNREVISED 06 IN THE THIRD QUARTER FROM THE SECOND QUARTER AND WAS UP A REVISED 21 FROM A YEAR EARLIER ACCORDING TO SEASONALLY ADJUSTED FIGURES PUBLISHED YESTERDAY BY THE CENTRAL STATISTICS OFFICE THE FIGURES ALSO SHOW THAT BRITAIN'S SAVINGS RATIO OR PERSONAL SAVING AS A PERCENTAGE OF TOTAL PERSONAL DISPOSABLE INCOME FELL TO 106 IN THE THIRD QUARTER FROM 117 IN THE SECOND QUARTER 9312210030 931221 ECONOMY LOANDENIAL RATE IS STILL HIGH FOR BLACKS GAP WITH WHITES WIDENS THOUGH MORE MINORITIES ARE SEEKING MORTGAGES BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MANY MORTGAGE LENDERS ARE TRYING TO DO MORE BUSINESS AMONG MINORITIES BUT THE DISTURBING GAP BETWEEN BLACK AND WHITE LOANDENIAL RATES IS PROVING HARD TO SHAKE WHILE REJECTION RATES FOR BOTH WHITES AND BLACKS DECLINED MODESTLY IN 1992 FROM 1991 BLACKS WERE AGAIN TURNED DOWN TWICE AS OFTEN AS WHITES IN FACT THE BLACKWHITE REJECTION GAP WIDENED LAST YEAR RISING TO A 206 RATIO FROM 191 IRONICALLY SOME BANKS FOUND THAT BY DOING MORE BUSINESS IN MINORITY NEIGHBORHOODS THEY ENDED UP REJECTING MORE APPLICATIONS WHICH MADE THEIR LENDING RECORDS LOOK WORSE SOME MINORITY LENDING ADVOCATES HOWEVER CONTEND THAT INCREASED APPLICATIONS FROM MINORITIES SHOULDN'T NECESSARILY PRODUCE HIGHER REJECTION RATES THE RESULTS ARE FROM A WALL STREET JOURNAL STUDY OF MORE THAN THREE MILLION MORTGAGE APPLICATIONS SUBMITTED TO LENDERS IN 1992 THE FIGURES INCLUDE CONVENTIONAL AND FEDERALLY BACKED NEW MORTGAGE LOANS FOR THE PURCHASE OF HOMES THEY DON'T INCLUDE REFINANCINGS WHICH WERE RAMPANT IN 1992 ESPECIALLY FOR WHITE BORROWERS OR HOMEEQUITY LINES WITH THE ECONOMY PICKING UP AND INTEREST RATES PLUNGING LOAN ACTIVITY IN 1992 INCREASED FOR BOTH MINORITIES AND WHITES APPLICATIONS ROSE 10 FOR BLACKS TO 176365 AND INCREASED 12 FOR WHITES TO 25 MILLION MEANWHILE THE NUMBER OF WHITE DENIALS ROSE A SCANT 03 BUT BLACK DENIALS WERE UP NEARLY 6 THE BLACK DENIAL RATE WAS 34 COMPARED WITH A WHITE DENIAL RATE OF 17 LOWER INCOMES AMONG MINORITY APPLICANTS DON'T FULLY ACCOUNT FOR THE GAP THE RACIAL DISPARITIES IN REJECTION RATES ARE PERVASIVE WITHIN ALL INCOME LEVELS SHOWING THAT THE PROBLEM GOES BEYOND INCOME ALONE AND THAT BANKS' OUTREACH EFFORTS TO LOWINCOME AREAS DON'T DEAL WITH THE WHOLE PROBLEM IN FACT THE FEDERAL RESERVE DATA FOR 1992 SHOWS THAT THE BIGGEST GAP WAS AMONG APPLICANTS EARNING BETWEEN 75000 AND 99999 A YEAR AND SEEKING LOANS 175 TO 225 TIMES ANNUAL INCOME FOR THIS GROUP BLACKS WERE REJECTED AT A RATE 248 TIMES THAT OF WHITE APPLICANTS THE LOWEST RATIO WAS 165 FOR THOSE EARNING LESS THAN 25000 BLACKS EARNING BETWEEN 25000 AND 49999 WERE DENIED LOANS 233 TIMES AS OFTEN AS WHITES IN THE SAME INCOME CATEGORY BLACKS EARNING BETWEEN 50000 AND 74999 WERE TURNED DOWN 240 TIMES AS OFTEN AS THEIR WHITE COUNTERPARTS BLACKS MAKING MORE THAN 100000 A YEAR WERE REJECTED 185 TIMES AS OFTEN AS THE COMPARABLE WHITE APPLICANTS THESE RATIOS HAVE ALL NARROWED SINCE 1990 AND ALL THE GAPS EXCEPT THE LOWESTINCOME DISPARITY LESSENED SINCE 1991 I FIND THAT AS DISTURBING AS ANYTHING SAYS JOHN TAYLOR PRESIDENT OF THE NATIONAL COMMUNITY REINVESTMENT COALITION AN ORGANIZATION OF GRASSROOTS GROUPS COMMENTING ON HOW THE DISPARITIES CUT ACROSS ALL INCOME GROUPS TRADITIONAL BANK MORTGAGEUNDERWRITING PRACTICES AND THE WAY LOAN OFFICERS VIEW MINORITY APPLICANTS AT ANY INCOME LEVEL ARE AT THE ROOT OF MUCH OF THE DIFFICULTY HE SAYS MARKETING ALONE WILL NOT SOLVE THE PROBLEM WHERE THERE IS PARTICULAR PRESSURE FOR MORE LENDING TO MINORITIES THERE APPEARS TO HAVE BEEN SOME IMPROVEMENT SAYS DEEPAK BHARGAVA A LOBBYIST FOR THE ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM NOW OR ACORN BUT OVERALL I DON'T SEE MUCH IN THE WAY OF DRAMATIC CHANGE IN 1992 MR BHARGAVA ADDS MORE LOANS ARE BEING MADE BUT THE TURNDOWN DISCREPANCY IS STILL NOT WHAT WE'D LIKE IT TO BE SAYS BRIAN SMITH POLICY DEVELOPMENT DIRECTOR FOR THE SAVINGS AND COMMUNITY BANKERS OF AMERICA A THRIFTINDUSTRY TRADE GROUP A LENDERS' TASK HE SAYS IS TO BE SURE THAT YOU'RE NOT DIRECTING PEOPLE TO MAKE BAD LOANS BUT SHOWING THEM THAT THERE'S GOLD IN THEM THAR COMMUNITIES BANKS ARE WORKING VERY HARD TO BRING IN MORE MINORITY APPLICATIONS SAYS VIRGINIA STAFFORD A SPOKESWOMAN FOR THE AMERICAN BANKERS ASSOCIATION BUT WE ARE NOT HAPPY WITH THOSE REJECTION DISPARITIES MANY LENDERS SAY THAT AS THEY ESCALATE THEIR MARKETING EFFORTS IN MINORITY AREAS PRODUCING MORE LOANS FOR BLACKS THEY CANNOT AVOID REJECTING MORE BLACK APPLICANTS AS WELL THE MAIN REASON CITED BY THE BANKERS IS THAT MINORITIES OFTEN HAVE MARGINAL CREDIT HISTORIES OR ARE IN POOR FINANCIAL SHAPE WHICH MEANS MORE DENIALS APPLICANTS' CREDIT HISTORIES AND DEBTTOINCOME LEVELS KEY ELEMENTS IN LENDING DECISIONS DON'T HAVE TO BE REPORTED TO REGULATORS AND COULDN'T BE EVALUATED IN THIS STUDY THE FED'S SPOTLIGHT ON LENDING DISPARITIES THE GOVERNMENT'S FOCUS ON COMMUNITY REDEVELOPMENT LENDING AND SOME REGULATORY ACTIONS THAT LEND TOUGHNESS TO THAT FOCUS HAVE REALLY GOTTEN THE ATTENTION OF EVERYBODY IN THE LENDING BUSINESS SAYS WARREN LASKO EXECUTIVE VICE PRESIDENT OF THE MORTGAGE BANKERS ASSOCIATION THE PROBLEM HE SAYS IS THAT THE MORE YOU OUTREACH TO MINORITY COMMUNITIES THE MORE DENIALS YOU HAVE HE ADDS YOU WOULDN'T WANT TO PLACE SOMEBODY IN A HOUSE WHO CAN'T AFFORD IT FOR EXAMPLE THE HIGHEST BLACKWHITE REJECTION RATIO DISCLOSED BY THE FED'S 1992 SURVEY WAS 2158 FOR ST PAUL FEDERAL BANK FOR SAVINGS THE CHICAGOBASED SAVINGS BANK'S BLACK APPLICATIONS ROSE A SUBSTANTIAL 156 TO 69 IN 1992 AND APPROVALS WERE UP BY 25 BUT DENIALS ALSO INCREASED FROM ONLY ONE IN 1991 TO 18 LAST YEAR TECHNIQUES SUCH AS HOMEBUYING SEMINARS WERE USED TO SPARK MORE MINORITY APPLICANTS BUT IN THE PROCESS YOU ATTRACT A LOT MORE MARGINAL APPLICANTS AND MORE REJECTIONS SAYS THOMAS RINELLA A ST PAUL FEDERAL SENIOR VICE PRESIDENT BEVERLY BANK'S EFFORTS TO ATTRACT LOW AND MODERATEINCOME MINORITY FAMILIES MAKE IT A CHICAGOAREA LEADER IN LENDING TO BLACKS BUT IT'S AN ABSOLUTE SHAME THAT THIS CAUSES THE WORLD TO THINK WE'RE NOT TRYING WHEN WE ARE SAYS BEVERLY PRESIDENT JOHN VAN WINKLE THE CHICAGOBASED BANK RANKED FIFTH ON THE DISPARITY LIST WITH A 1038 BLACKTOWHITE LOANDENIAL RATIO THESE LENDERS HAVE SOME SUPPORT SOME OF THE GUYS DOING A BETTER JOB ARE SHOWING THE WORST RESULTS IN BLACK REJECTION RATES SAYS A FED OFFICIAL JONATHAN BROWN WHO HEADS ESSENTIAL INFORMATION A PROJECT OF CONSUMER ADVOCATE RALPH NADER SAYS THAT MANY LENDERS HAVE HIGH APPROVAL RATES FOR BLACKS BECAUSE THEY DISCOURAGE MOST MINORITY APPLICATIONS WHILE OTHERS WITH LOW BLACK APPROVAL RATES ARE DOING A MUCH BETTER JOB SEARCHING FOR MINORITY CUSTOMERS FEDERAL ENFORCEMENT IN FACT SO FAR TENDS TO PENALIZE THOSE WHO GO OUT AND DRUM UP BUSINESS MR BROWN SAYS HIS GROUP RECENTLY ISSUED A REPORT CONCLUDING THAT MANY LENDERS SHUN BUSINESS IN MINORITY NEIGHBORHOODS SOME BANKS CAN AVOID THE HEADLINES BY SITTING ON THE SIDELINES SAYS EDWARD WILLIAMS A HARRIS TRUST & SAVINGS BANK SENIOR VICE PRESIDENT NOW MANY MORTGAGE FIRMS ARE CONCERNED BOTH THAT THE GOVERNMENT MAY SET RIGID GUIDELINES FOR ENCOURAGING MORE APPLICATIONS BY MINORITIES YET ALSO LAUNCH ENFORCEMENT CRACKDOWNS ON LENDERS THAT HAVE HIGH BLACK REJECTION RATES CAUSED BY AGGRESSIVE MARKETING IN MINORITY NEIGHBORHOODS SOME LENDERS HAVE MARKETED VIGOROUSLY IN MINORITY AREAS AND BEEN ABLE TO SHOW A MUCH LOWER BLACK REJECTION RATE THAN MOST OTHERS BUT STILL NOWHERE AS LOW AS THEIR WHITE DENIAL RATE GUARANTY MORTGAGE MILWAUKEE DEVELOPERS MORTGAGE CORP VIENNA VA AND VIRGINIA FIRST SAVINGS BANK RICHMOND VA WERE AMONG THE 15 MORTGAGE FIRMS WITH THE LARGEST BLACKWHITE DISPARITIES IN 1992 BUT THEIR BLACK REJECTION RATES WERE IN A RELATIVELY LOW 8 TO 9 RANGE WE ARE THE ACKNOWLEDGED MINORITYLENDING LEADER IN THE MILWAUKEE AREA SAYS GUARANTY CHAIRMAN GERALD LEVY VIRGINIA FIRST SIMILARLY SAYS IT IS THE TOP MINORITY LENDER IN ITS AREA THE BANK SAYS IT MANAGES TO APPROVE ABOUT 98 OF ITS MORTGAGE LOANS ONE WAY OR ANOTHER APPLICANTS INITIALLY TURNED DOWN ARE STEERED TOWARD ALTERNATIVE PRODUCTS SUCH AS ADJUSTABLERATE MORTGAGES THE BANK RECEIVED AN OUTSTANDING COMMUNITY REINVESTMENT ACT RATING FROM REGULATORS INDEED LENDERS MUST SEEK MORE MINORITY APPLICANTS AND ALSO CHANGE THEIR LOAN PRACTICES TO RECOGNIZE THE PARTICULAR NEEDS OF BLACK BORROWERS ADVOCACY GROUPS SAY THEY SAY THAT HAVING NO CREDIT RECORD SHOULDN'T BE A NEGATIVE FOR EXAMPLE MAKING TIMELY UTILITY AND RENT PAYMENTS SHOWS FINANCIAL RESPONSIBILITY JUST AS MUCH AS A STRING OF TIMELY DEBT PAYMENTS AGGRESSIVE MINORITY LENDING PROGRAMS IF DONE PROPERLY DON'T NECESSARILY CHANGE CREDIT QUALITY THEY INCREASE THE POOL OF BORROWERS SAYS ACORN'S MR BHARGAVA AS FOR MORE ATTEMPTS TO FIND BLACK APPLICANTS IT'S MY SENSE THAT THAT DOESN'T REALLY EXPLAIN FOR MOST LENDERS THE REJECTION DISPARITIES HE SAYS MANY LENDERS ARE IN FACT WORKING TO BOOST LOAN APPROVALS AND TRIM REJECTIONS FOR MINORITIES THEY ARE STARTING TO GIVE THEIR BIDS A SECOND REVIEW AFTER AN INITIAL DENIAL HOLDING SEMINARS TO EDUCATE BLACK BORROWERS IN THE WAYS OF MORTGAGES AND TRAINING LOAN OFFICERS TO DO A BETTER JOB OF HANDLING MINORITY APPLICATIONS OFTEN IF A LOAN OFFICER PUTS AN EFFORT INTO RESOLVING A PROBLEM APPLICATION THE LOAN ENDS UP BEING APPROVED PNC BANK IN CINCINNATI FORMERLY CENTRAL TRUST CO PLUNGED FROM FIFTH ON THE JOURNAL'S RACIALDISPARITIES LIST FOR 1991 TO 184TH IN 1992 SLASHING ITS BLACKWHITE REJECTION RATIO TO 256 FROM 566 THE BANK HAS REDOUBLED ITS EFFORTS ADDING BLACK LOAN ORIGINATORS PROVIDING SENSITIVITY TRAINING FOR WHITE OFFICIALS DOING MORE SOPHISTICATED LOAN COUNSELING OF MINORITY CUSTOMERS ISSUING MORE FLEXIBLE UNDERWRITING STANDARDS AND CREATING AN OUTSIDE LOANREVIEW COMMITTEE FROM THE MINORITY COMMUNITY WE BECAME BETTER AT KNOWING WHAT WE REALLY NEEDED SAYS MICHAEL RIZER THE BANK'S COMMUNITY AFFAIRS OFFICER PNC BANK MAY BE ABLE TO TRIM ITS BLACKWHITE RATIO TO ABOUT 225 FOR 1993 BUT MR RIZER SAYS I THINK IT'LL BE HARD FOR MANY BANKS TO BREAK CONSISTENTLY BELOW THAT CONSIDERING THE DEBTTOINCOME RATIOS OF MANY MINORITY LOAN PROSPECTS HARRIS TRUST & SAVINGS CHICAGO REDUCED ITS RATIO FROM 1619 IN 1991 TO A STILL HIGH 1058 LAST YEAR AMONG OTHER MOVES THE BANK INCREASED FLEXIBILITY FOR DOWN PAYMENTS AND CHANGED LOANORIGINATORS' COMPENSATION SO THEY AREN'T PENALIZED FOR MAKING SMALLER LOANS IN LOW AND MODERATEINCOME NEIGHBORHOODS BUT LENDERS THAT AGGRESSIVELY SEEK NEW BORROWERS WILL AT LEAST INITIALLY SUFFER A HIGHER RATIO SAYS HARRIS'S MR WILLIAMS TO PREPARE THE ARTICLE AND TABLES THE WALL STREET JOURNAL EXAMINED MORE THAN THREE MILLION MORTGAGE APPLICATIONS SUBMITTED BY INDIVIDUALS IN 1992 TO MORE THAN 9000 LENDING INSTITUTIONS AS WELL AS 27 MILLION APPLICATIONS SUBMITTED IN 1991 AND ALMOST 25 MILLION SUBMITTED IN 1990 THE 1992 APPLICATIONS WERE SELECTED FROM MORE THAN 12 MILLION REPORTS THAT FEDERAL REGULATORS COLLECTED FROM LENDERS UNDER THE 1989 HOME MORTGAGE DISCLOSURE ACT THE REPORTS INCLUDED DATA ON LOANS FOR PURPOSES SUCH AS HOME IMPROVEMENT AND FOR REFINANCING EXISTING MORTGAGES BUT DIDN'T CONTAIN INFORMATION ON CREDIT HISTORY OR DEBTTOINCOME LEVELS THE JOURNAL FOCUSED ONLY ON LOANS USED TO BUY ONEFAMILY TO FOURFAMILY RESIDENCES INCLUDING MOBILE HOMES IT ELIMINATED ALL APPLICATIONS THAT DIDN'T SPECIFY THE LOAN AMOUNT AND THE APPLICANT'S RACE SEX AND INCOME FOR INDIVIDUAL LENDERS THE PERCENTAGE OF BLACK APPLICATIONS REJECTED WAS DIVIDED BY THE PERCENTAGE OF WHITE APPLICATIONS REJECTED THUS A BANK THAT REJECTED 10 OF APPLICATIONS FROM WHITES AND 25 OF APPLICATIONS FROM BLACKS WOULD HAVE A RATIO OF 25 A BLACK SEEKING A MORTGAGE THERE WOULD BE 25 TIMES AS LIKELY TO BE REJECTED AS A WHITE RANKED BY THE RATIO OF BLACK REJECTION RATES TO WHITE REJECTION RATES BASED ON NATIONWIDE DATA FOR 1992 LENDERS THAT DIDN'T RECEIVE 50 OR MORE APPLICATIONS FROM BLACKS AND FROM WHITES IN A GIVEN STATE AREN'T INCLUDED IN THE STATEBYSTATE TABLE HOMEBUYING SEMINARS SPURRED A SHARP RISE IN MINORITY APPLICANTS AND LOANS BUT A LOT MORE MARGINAL ONES WERE REJECTED AND BETTER TRAINING IN MINORITY LENDING HOME LOAN APPLICATIONS ROSE 72 FOR BLACKS VS 12 FOR WHITES 50 MORE BLACK LOANS WERE GRANTED THAN IN 1991 SOARED MORE THAN FIVEFOLD FROM 1990 TO 1992 DESPITE THE HIGH REJECTION RATE MANY MINORITY LOAN ORIGINATORS AND A SECOND REVIEW FOR DENIED LOANS AGGRESSIVELY SEEKING BORROWERS CAN MEAN A HIGHER BLACKWHITE REJECTION RATIO FAMILIES MAKES FIRM A LEADER IN LOANS TO BLACKS IN CHICAGO AREA BUT ALSO MEANS AN UNAVOIDABLE HIGHER DENIAL RATIO THE MILWAUKEE AREA FOR THE THIRD STRAIGHT YEAR WITH A BLACK DENIAL RATE BELOW 10 ADVERTISES IN MINORITY AREAS AND HOLDS HOMEBUYER SEMINARS THERE FIGURES WOULD INDICATE A PROGRAM TO EDUCATE LOW AND MODERATEINCOME BORROWERS REGARDING SPECIAL LOAN PROGRAMS SHOULD IMPROVE 1993 NUMBERS HOUSING FOR FIRSTTIME BUYERS HELPS NEW YORK SET UP HOUSINGSERVICE OFFICES IN AREAS LIKE BEDFORDSTUYVESANT AND OFFERS SEMINARS ON STATE LENDING PROGRAMS SUCH AS MARKETING TO MINORITY REALTORS FINDS THAT SOME PEOPLE CAN'T QUALIFY FOR A LOAN THOUGH A SECOND LOOK PANEL HELPS REJECTEES TRY AGAIN FROM A VIRGINIA PROGRAM FOR LOW AND MODERATEINCOME HOUSING IT ALSO JOINS IN FIRSTTIME HOMEBUYER PROGRAMS INCLUDING MORE RADIO AND TV ADS DISPARITY IS PARTLY A STATISTICAL ANOMALY DUE TO LOW NUMBERS OF BLACK APPLICANTS CORE BANK A SEPARATE RURALURBAN UNIT ISSUES MORE MORTGAGES AND HAS A LOWER RATIO SUNBURST WAS PRAISED BY FANNIE MAE FOR ITS MINORITY LENDING ITS MORTGAGE LOANS ONE WAY OR ANOTHER APPLICANTS INITIALLY TURNED DOWN ARE STEERED TOWARD ALTERNATIVE PRODUCTS SUCH AS ADJUSTABLERATE MORTGAGES MEANINGFUL COMPARISON DIFFICULT MINORITY LOANREJECTION FILES ARE REVIEWED FOR CONSISTENT COMPLIANCE WITH THE BANK'S UNDERWRITING STANDARDS THE LENDER SOUGHT MINORITY BORROWERS INCLUDING OFFERS OF 100 FINANCING IT USED MORTGAGE SEMINARS WITH SAVINGS BOND DRAWINGS TO ENCOURAGE PARTICIPATION 9312210029 931221 TOUGH GAME TOY INDUSTRY FINDS IT'S HARDER AND HARDER TO PICK THE WINNERS STORES' JUSTINTIME TACTICS CREATE SHORTAGES IRKING BUYERS AND CURBING SALES THE POWER RANGERS SURPRISE BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL AT TARGET STORES HEADQUARTERS IN MINNEAPOLIS MARK PRITCHARD WAS ON TOYSALES WATCH IN LATE AUGUST WHEN HE DETECTED UNUSUAL ACTIVITY ON HIS COMPUTER SCREEN THE SALES CURVE OF NEWLY SHIPPED MIGHTY MORPHIN POWER RANGERS ROSE STEEPLY FOR A NEW TOY AND AN UNHERALDED ONE AT THAT LIKE A SENTRY PUT ON ALERT BY MOVEMENT ON A RADAR SCREEN THE TOY BUYER QUICKLY CONFERRED WITH COLLEAGUES THEY COMPARED THE RANGERS CURVE TO THAT OF MORE RECENT HITS INCLUDING TEENAGE MUTANT NINJA TURTLES AND POWER RANGERS' ASCENT WAS EVEN SHARPER NO ONE WAS SURE WHAT TO MAKE OF IT A POWER RANGERS TV TIEIN HADN'T BEEN SHOWN YET AND BANDAI CO MAKER OF THE TOY WAS AN OBSCURE JAPANESE COMPANY BEST KNOWN FOR GOBOTS A POTENTIAL HIT NINE YEARS AGO THAT WAS TROUNCED BY A LOOKALIKE LINE FROM HASBRO INC WE DECIDED TO WAIT TO SEE HOW THE TOY WOULD SELL TWO WEEKS AFTER THE TELEVISION SHOW WENT ON THE AIR IN SEPTEMBER MR PRITCHARD SAYS IT PROVED TO BE A COSTLY DELAY BY THE TIME TARGET A DAYTON HUDSON CORP UNIT PLACED ITS SECOND RANGERS ORDER IN EARLY OCTOBER THE TOY WAS IN SHORT SUPPLY MOREOVER PRACTICALLY EVERY OTHER US TOY RETAILER ALSO ORDERED LATE AND NOW CAN'T MEET CHRISTMAS DEMAND IN ALL 600000 OF THE RANGERS ACTION FIGURES WILL BE SHIPPED BEFORE DEC 25 FAR SHORT OF THE ESTIMATED DEMAND OF 12 MILLION SAYS HAIM SABAN HEAD OF SABAN ENTERTAINMENT WHICH PRODUCED THE TV SHOW AND LICENSED BANDAI TO MAKE THE TOY THE SHORTAGE REFLECTS THE DIFFICULTY OF DIVINING THE MINDS OF CHILDREN WHO WOULD HAVE THOUGHT THAT AN IDEA FOR A TV SHOW REPEATEDLY RIDICULED BY NETWORK EXECS FOR EIGHT YEARS WOULD BECOME THE RAGE FIVE TEENYBOPPERS LACKING IN SELFESTEEM MORPH TRANSFORM THEMSELVES INTO WARRIORS IN MOTORCYCLE HELMETS AND SPACESUITS BY SUMMONING THE SPIRITS OF DEAD DINOSAURS THEN JOINED BY MIDGET RAP ARTISTS AND TURTLES WITH TRAFFIC LIGHTS ON THEIR HEADS THEY TAKE ON A SHRIEKING MOCKKABUKI SORCERESS NAMED RITA REPULSA WHO LIVES ON THE MOON I MUST HOLD MY HAND UP AND SAY YES I DID NOT GET IT' CONFESSES BILL SONDHEIM VICE PRESIDENT OF SALES AND MARKETING FOR POLYGRAM VIDEO IN NEW YORK A UNIT OF POLYGRAM NV OF THE NETHERLANDS THAT HAS SOLD 750000 POWER RANGER HOME VIDEOS SINCE THANKSGIVING BUT HE ADDS PART OF THE ATTRACTION OF POWER RANGERS IS THAT ADULTS ARE DISGUSTED BY IT I THINK KIDS KNOW THAT AND LOVE IT IN ADDITION THE SHORTAGE REFLECTS THE RETAILING INDUSTRY'S ATTEMPTS TO TAKE THE GUESSWORK OUT OF PREDICTING WINNERS THESE DAYS RETAILERS ORDER IN TRICKLES AND THEN BEFORE ORDERING MORE TRACK SALES WITH COMPUTERS LINKED TO CASHREGISTER SCANNERS VIA SATELLITE IN THE JARGON OF THE TRADE THIS IS CALLED JUSTINTIME BECAUSE SHIPMENTS ARE TIMED TO REPLACE PRODUCTS JUST AS THEY ARE SOLD OFF THE SHELF JUSTINTIME WAS FIRST CHAMPIONED IN RETAILING BY THE LIKES OF TOYS R US INC WALMART STORES INC AND HOME DEPOT INC WHICH SOUGHT TO REDUCE INVENTORY CARRYING COSTS AND THE LIKELIHOOD OF STOCKING WAREHOUSES FULL OF DUDS BUT RETAILERS AND MANUFACTURERS ALIKE ARE BEGINNING TO REALIZE THAT JUSTINTIME INVENTORY CONTROL CAN HAVE A SERIOUS DOWNSIDE IT DOESN'T GIVE THEM ENOUGH TIME TO TAKE ADVANTAGE OF SURPRISE HITS THIS RISK IS A SPECIAL PROBLEM IN TOYS WHICH ARE GREATLY SUBJECT TO FAD BUYING ESPECIALLY DURING THE RELATIVELY SHORT CHRISTMAS SEASON JUSTINTIME HAS HELPED CREATE A NEAR PANIC THIS CHRISTMAS AS PARENTS SCRAMBLE TO FIND POWER RANGERS AND OTHER TOYS IN SHORT SUPPLY NEITHER MR SABAN NOR BANDAI AMERICA THE JAPANESE COMPANY'S US UNIT WILL FORECAST THIS YEAR'S RANGER SALES IN DOLLARS BUT RETAILERS RECKON THE TOY LINE PLAGUED BY THE SCARCITY WILL RING UP A RELATIVELY SMALL 15 MILLION FIRSTYEAR SALES OF PREVIOUS BLOCKBUSTERS WERE MUCH BIGGER IN 1983 CABBAGE PATCH DOLLS PULLED IN 67 MILLION IN 1984 HASBRO'S TRANSFORMERS DID 114 MILLION IN 1985 TEDDY RUXPIN DID 93 MILLION AND IN 1987 NINJA TURTLES DID 30 MILLION IN EACH CASE MANUFACTURERS HAD EARLY ENOUGH NOTICE TO RAMP UP PRODUCTION ANALYSTS SAY JUSTINTIME IS GREAT FOR CREST TOOTHPASTE NOT TOYS SAYS HOWARD DAVIDOWITZ CHAIRMAN OF DAVIDOWITZ & ASSOCIATES A RETAIL CONSULTING FIRM WITH TOYS YOU'VE GOT TO MAKE A FORECAST BECAUSE SO MUCH OF YOUR BUSINESS IS DONE IN THE LAST THREE MONTHS OF THE YEAR DAVID MILLER PRESIDENT OF THE TOY MANUFACTURERS ASSOCIATION AGREES THE PROBLEM WITH JUSTINTIME IS YOU DON'T GET SOLID READINGS ON BIG CHRISTMAS ITEMS UNTIL LATE SEPTEMBER OR OCTOBER BY THEN IT'S TOO LATE TO GET ANY SIGNIFICANT SHIPMENTS ON AVERAGE IT TAKES THREE MONTHS TO MAKE SHIP AND STOCK A PRODUCT ON THE SHELF HE SAYS BUT POWER RANGERS FIGURES WHICH CAN BE BENT IN 22 DIFFERENT PLACES COMPARED WITH FIVE FOR AN AVERAGE ACTION FIGURE TAKE LONGER TO MAKE ASSEMBLYLINE WORKERS MANUALLY SCREW PARTS OF THE TOYS TOGETHER FOR EXAMPLE POWER RANGERS ISN'T THE ONLY TOY IN SHORT SUPPLY THIS YEAR MORE THAN TWO DOZEN OTHER HOT TOYS ARE HARD IF NOT IMPOSSIBLE TO GET RETAILERS SAY GOOD LUCK FINDING TIGER ELECTRONICS INC'S TALKBOY THE VOICEDISGUISING TAPE RECORDER USED BY CHILD ACTOR MACAULAY CULKIN IN THE MOVIE HOME ALONE II MY SIZE BARBIE A THREEFOOTTALL DOLL MADE BY MATTEL INC BLUE BOX TOYS INC'S BATTERY OPERATED DREAM HOUSE LEWIS GALOOB TOYS INC'S BIKER MICE FROM MARS ACTION FIGURES BUILDING SETS SUCH AS CONNECTOR SET TOY CO'S K'NEX AND MECCANO SA'S ERECTOR SETS HASBRO'S BATMAN CAVE BATMOBILE AND BATCYCLE TYCO TOYS INC'S MATCHBOX MOTORCYCLES LIONEL TRAINS INC'S THOMAS THE TANK TRAIN AND PLASTIC FIGURES OF PRO ICEHOCKEY PLAYERS THE LIST WOULD GIVE EVEN OUR FRIENDS FROM THE NORTH POLE A HEADACHE SAYS STEPHEN SANDBERG A FOXBORO MASS WHOLESALER WHO HAS BEEN TRYING TO SCRAPE UP LASTMINUTE FINDS FOR DESPERATE NEW ENGLAND RETAILERS WE'D HAD SHORTAGES IN THE PAST BUT IT'S GOTTEN WORSE IN RECENT TIMES HE SAYS THE FLINTY INVENTORYCONTROL PRACTICES BECAME VOGUE ABOUT THREE YEARS AGO WHEN TOY MAKERS BEGAN TAKING FEWER CHANCES ON NEW BIG TOY LINES AND PRODUCING MORE VARIATIONS OF BASIC STAPLES FOR WHICH JUSTINTIME IS MORE SUITED ANALYSTS SAY THE CONSERVATIVE STREAK CAME ON THE HEELS OF HIGHWIRE ACTS DURING THE 1980S THAT LED TO THE BANKRUPTCY OF SEVERAL TOY MANUFACTURERS AMONG THEM COLECO INDUSTRIES INC THEN THE MAKER OF CABBAGE PATCH KIDS AND WORLDS OF WONDER INC CREATOR OF TEDDY RUXPIN EXCESS INVENTORY CONTRIBUTED TO THEIR DOWNFALLS IN 1987 ONE YEAR AFTER TEDDY RUXPIN BECAME A HIT WORLDS OF WONDER RAISED 80 MILLION IN A BOND OFFERING TO MAKE MORE TEDDY RUXPINS AND LASER TAGS THAT WAS IN JULY NOTES PAUL VALENTINE AN ANALYST AT STANDARD & POOR'S CORP BY CHRISTMAS THE COMPANY WAS IN BANKRUPTCY ALL THE MONEY WAS IN INVENTORY EXCESS INVENTORY WATCHING THE CARNAGE RETAILERS MANY OF WHOM HAD TO SELL THOSE TOYS AT A LOSS BECAME CAUTIOUS TOO AND SMARTER THEY BEGAN PLACING ORDERS BASED ON WHAT THEY NEEDED AND NOT ON WHAT THEY THOUGHT THEY MIGHT BE ABLE TO SELL THE NEW APPROACH WORKED JUSTINTIME SLASHED COSTS AND GENERATED BIG PROFITS SO SUCCESSFULLY THAT RETAILERS THAT BECAME MORE SKILLED AT IT DOMINATED WEAKER COMPETITORS AND RAPIDLY GAINED MARKET SHARE TODAY RETAILERS AS A GROUP STAND BY JUSTINTIME DOING BUSINESS BY COMPUTER SAVES MONEY THEY ARGUE THE LATER YOU FLOW THE GOODS THROUGH THE CHANNELS THE LOWER YOU KEEP YOUR INVENTORY AND THE FEWER YOUR MARKDOWNS SAYS MICHAEL GOLDSTEIN VICE CHAIRMAN OF TOYS R US ELECTRONIC TRACKING HE ADDS KEEPS TOYS R US BATTLESTATION READY FROM COMPUTER COMMAND POSTS WE KNOW WHAT'S ON OUR TRUCKS WHERE THEY'RE HEADED AND WHO NEEDS NEW SUPPLIES NOW WITH SEVERAL BIG TOY RETAILERS HAVING FAILED IN RECENT YEARS THE REMAINING CHAINS HAVE GROWN IN CLOUT AND IN CONFIDENCE THAT THEY CAN COMPEL MANUFACTURERS TO SHIP PRODUCT ON SHORT NOTICE NO LONGER CAN WE BE JUST VENDORS TO THEM WE MUST AND ARE BECOMING PARTNERS SAYS ALAN HASSENFELD CHAIRMAN OF HASBRO THE NATION'S LARGEST TOY MAKER TO MEET DEMAND BANDAI TIGER MECCANO AND OTHER MANUFACTURERS HAVE BEEN OPERATING THEIR FACTORIES ROUND THE CLOCK PAYING EMPLOYEES OVERTIME FLYING IN SHIPMENTS FOR THE PAST SIX WEEKS THEN RUSHING PACKAGES BY OVERNIGHTDELIVERY SERVICE TO RETAILERS MECCANO IS LOSING MONEY UNDER THE SPEEDEDUP SYSTEM STEPHANE TREPPOZ A VICE PRESIDENT SAYS BUT WE'RE BITING THE BULLET THIS YEAR BECAUSE WE WANT TO MAKE A STATEMENT THAT MECCANO IS A SERIOUS SUPPLIER EVEN WITH THESE SPECIAL EFFORTS HOWEVER MANUFACTURERS SAY THEY COULD HAVE SOLD MORE TOYS THIS CHRISTMAS WITHOUT THE RETAILERS' TOUGH INVENTORY CONTROLS THE RETAILERS' INFLUENCE GOES BEYOND SUPPLY WHEN TOYS R US LAUNCHED ITS LARGESTEVER COUPON PROGRAM LAST MONTH IT FORCED TOY MAKERS TO BEAR MOST OF THE COST TOY MAKERS ALSO PARADE NEW PRODUCTS BEFORE THE MAJORS IN PRIVATE SCREENINGS BEFORE FIRING UP THE FACTORY IF TWO OF THE BIG GUYS DON'T WANT IT WE KILL THE LINE ONE MANUFACTURER SAYS LUKEWARM RESPONSES HAVE KILLED SOME PRODUCTS THAT WEREN'T SO BAD HASBRO PULLED THE PLUG ON AN INTERACTIVEGAME SYSTEM AFTER TOYS R US PANNED IT BUT SEGA ENTERPRISES LTD BOUGHT SOME FILM FOOTAGE FROM THE HASBRO SYSTEM AND USED IT FOR A SEGA CDROM VIDEO GAME NOW ON THE MARKET SOME MANUFACTURERS HOWEVER CAN'T AFFORD TO MAKE LASTMINUTE SHIPMENTS AT A LOSS BLUE BOX TOYS SAYS IT COULD HAVE SOLD ABOUT 20 MORE OF ITS DREAMHOUSE DOLLS ALONG WITH SHARI LEWIS LAMB CHOP AND FRIENDS PRODUCTS IF THE ORDERS HAD COME IN BEFORE OCTOBER THE BUSINESS STARTS LATER AND LATER EACH YEAR SAYS LARRY STERN VICE PRESIDENT OF PRODUCT DEVELOPMENT TO US THAT'S MISSED OPPORTUNITIES DESPITE THE SHORTAGES A FEW RETAILERS STILL AREN'T ACKNOWLEDGING THAT THIS CHRISTMAS'S HITS ARE BLOCKBUSTERS THERE'S SO LITTLE PRODUCT OUT THERE THAT IT'S TOO EARLY TO TELL HOW MUCH OF A HIT POWER RANGERS REALLY IS ONLY TIME WILL TELL SAYS MR GOLDSTEIN OF TOYS R US SKEPTICISM ALSO ABOUNDS ABOUT THE LASTING POWER OF THE POWER RANGERS TV SHOW BUD KENNEDY A COLUMNIST FOR THE FORT WORTH STARTELEGRAM WHO RECENTLY WROTE ABOUT A POWER RANGERCRAZED MOTHER SAYS I GOT UP EARLY ONE MORNING TO WATCH THE SHOW THERE IS HUMOR TO IT BUT IT'S A STUPID KIND OF HUMOR HE DECLARES BUT HE ADDS THERE ARE FOUR MILLION PEOPLE IN TEXAS RIGHT NOW TAKING LONG VACATIONS TO SEARCH THE ENDS OF THE EARTH FOR THE TOY SINCE THE FOX CHILDREN'S NETWORK FIRST BROADCAST THE POWER RANGERS TV SHOW THE PROGRAM HAS TOPPED THE RATINGS CHARTS IN CHILDREN'S ENTERTAINMENT ON SATURDAYS AND WEEKDAY AFTERNOONS BUT THE SHOW ALMOST NEVER HAPPENED SAYS SABAN ENTERTAINMENT'S MR SABAN IN THE SUMMER OF 1992 MR SABAN PRODUCER OF XMEN AND OTHER CARTOON SERIES MET WITH EXECUTIVES FROM FOX CHILDREN'S NETWORK TO DISCUSS PROGRAMMING FOR THE FALL OF 1993 HE UNVEILED 14 PROJECTS INCLUDING ONE TITLED 2000 LEAGUES IN SPACE AND ANOTHER NAMED COURAGEOUS CAT ALL WERE REJECTED JUST BEFORE LEAVING HE SCREENED A SHORT PRESENTATION OF MIGHTY MORPHIN POWER RANGERS AN OFFBEAT PROGRAM THAT SPLICED OLD GODZILLA CLIPS WITH CHILDREN DOING KARATE STUNTS AND ADDED SOME LESSONS ON SELF CONFIDENCE ALL IN ONE CAMPY SUPERHERO ACTION SERIES FOR EIGHT YEARS MR SABAN HAD FAILED TO INTEREST ANYONE IN THE SHOW BUT THIS TIME IT CAUGHT THE FANCY OF ONE FOX EXECUTIVE A PILOT WAS ARRANGED IN FEBRUARY A SIMILAR PRESENTATION WAS SHOWN TO A DARKSUITED GATHERING OF TOY BUYERS IN NEW YORK OTHER THAN TARGET AND TOYS R US FEW WERE INTERESTED SOME POLITELY DECLINED TO ORDER SAYING JUST WANT TO HAVE A LOOKSEE SAYS PETER WANG EXECUTIVE VICE PRESIDENT OF MARKETING AND SALES FOR BANDAI AMERICA FEWER THAN 60000 PIECES WERE ORDERED MR SABAN SAYS MR SABAN COULDN'T DRUM UP MUCH ENTHUSIASM AT ANOTHER TRADE SHOW THE JUNE EVENT AT WHICH LICENSES ARE SOLD MR SABAN SAYS 18 COMPANIES BOUGHT RIGHTS TO USE THE POWER RANGERS NAME AND LOGO BUT THE PAYMENTS WERE NOMINAL NONE ACTUALLY STARTED MANUFACTURING PRODUCT ON HALLOWEEN PARENTS INCLUDING MR SABAN HAD TO MAKE THEIR OWN POWER RANGER COSTUMES FOR THEIR CHILDREN TODAY 40 COMPANIES INCLUDING VIDEOGAME LUNCHBOX PAJAMAS AND TOWEL MAKERS ARE RUSHING OUT POWER RANGER MERCHANDISE THOUGH NONE APART FROM TOYS AND HOME VIDEOCASSETTES MADE BY POLYGRAM VIDEO WILL BE OUT BEFORE CHRISTMAS MR SABAN SAYS THE SCARCITY OF MIGHTY MORPHIN MERCHANDISE HAS HELPED CREATE A SORT OF MORPHINMANIA SOME RETAILERS REPORT WAITING LISTS OF 500 CUSTOMERS PER STORE SINCE THANKSGIVING APPROXIMATELY 750000 VIDEOCASSETTES HAVE BEEN SOLD POLYGRAM VIDEO SAYS ANTICIPATING THE SHORTAGE TARGET PULLED AN AD FOR POWER RANGERS FROM ITS DECEMBER CIRCULAR TOYS R US WHICH DIDN'T RECEIVED SOME IRATE PHONE CALLS THE SHORTAGES HAVE TURNED PARENTS INTO MALL STALKERS COMBING RACKS AND READYING ELBOWS TO DO BATTLE FOR THEIR CHILDREN I CAN SYMPATHIZE WITH JASON AND THE ARGONAUTS THIS HAS BECOME A HUNT FOR THE GOLDEN FLEECE SAID STEPHEN KAYLOR WHO RECENTLY WENT SHOPPING FOR POWER RANGERS AND TALKBOY RESTING ON A MALL BENCH AT SHOPPERS' WORLD IN FRAMINGHAM MASS THE FATHER OF TWO DECLARED I'M READY TO PAY BLACKMARKET RATES LYDIA SOLTAU OF SOUTHERN CALIFORNIA IS MORE PHILOSOPHICAL I STOOD IN LINE FOR TWO HOURS OUTSIDE TARGET IN PASADENA FOR A POWER RANGER SHE SAYS I GOT ZILCH BUT I'LL KEEP DOING IT AGAIN AND AGAIN HOW CAN I TELL MY FIVEYEAROLD THAT SANTA DIDN'T MAKE ENOUGH OF THEM BESIEGED BY TOY SEEKERS' PHONE CALLS ABOUT 400 A DAY TO ITS HEADQUARTERS IN CERRITOS CALIF BANDAI AMERICA RECENTLY RAN NEWSPAPER ADS IN A DOZEN CITIES APOLOGIZING FOR THE SHORTAGE SORRY WE DON'T MEAN TO PLAY HARD TO GET THE AD READ 9312210028 931221 WHO'S NEWS ARCO CHEMICAL CO ARCO CHEMICAL CO NEWTOWN SQUARE PA PETER C HARRIS A SENIOR VICE PRESIDENT OF THIS CHEMICAL CONCERN AND PRESIDENT OF ITS ARCO CHEMICAL ASIA PACIFIC LTD UNIT WAS NAMED A DIRECTOR OF THE COMPANY INCREASING BOARD MEMBERSHIP TO 14 ARCO CHEMICAL IS 83OWNED BY ATLANTIC RICHFIELD CO 9312210027 931221 BUSINESS WORLD LIGHTS CAMERAMARKETING BY TIM W FERGUSON HOLLYWOOD IS THE LAND OF IMPULSIVE EXPENDITURES CREATIVE TYPES THAT TRY TO FOOL THE PUBLIC ON A REGULAR BASIS AND CREW DEPLOYMENTS THAT MIGHT MAKE GEORGE PATTON BLUSH WHAT HAS BUSINESS TO EMULATE IN ALL THAT A LOT SAY A PAIR OF ENTREPRENEURS WHO ARE APPLYING SHOW BIZ CONCEPTS TO CORPORATE MARKETING AND RETAIL FROM THEIR OFFICES AT THE FORMER DESILU AND ZOETROPE COPPOLA LOT ONE OF THEM JONATHAN KATZ HAS A SEPARATE COMPANY OF 120 EMPLOYEES THAT ARRANGES SCENES AND SPECIAL EFFECTS FOR MOTION PICTURES AND THEME PARKS FOR ALL THE TALK ABOUT THE EXTRAVAGANCES HE SAYS CANDO HOLLYWOOD IS IDEALLY SUITED TO TODAY'S VIRTUAL MARKETPLACE WHERE LOTS OF DISPARATE PARTS NEED TO COME TOGETHER QUICKLY IN HIS WORLD YOU HAVE A DATE TO DELIVERSHOW DATE LATE IS NO BETTER THAN NEVER THROWING EVERYTHING INTO THAT TASK INVOLVES PIECING TOGETHER THE CONTRIBUTIONS OF THE MANY AND VARIED CRAFT TECHNICAL AND ARTISTIC BUSINESSES THAT HAVE DISPERSED THE OLD STUDIO EMPIRES ADDS LINDA BERMAN HIS PARTNER IN THE BERMAN/KATZ CONSULTANCY HOLLYWOOD'S MAXIM PUT THE MONEY ON THE SCREEN IS APT FOR A RANGE OF COMPANIES IT MEANS MAKING SURE YOUR SPENDING SHOWS TO YOUR CUSTOMER OR CLIENT IN RETAIL SHOPS WHICH SHE'S OWNED FOR 20 YEARS INDULGING A STAGE DESIGNER WHO IS USED TO FUSSING OVER A SET TO MAKE IT FEEL RIGHT CAN BEAT LABORING THROUGH MONTHS OF CHANGE ORDERS WITH A TRADITIONAL ARCHITECT AND INTERIOR DESIGNER BRINGING ENTERTAINMENT SENSIBILITIES INTO THE STORES IS THE THRUST OF BERMAN/KATZ AND OTHERS ON THIS VANGUARD THEY'RE APPROACHING SHOPPING AS A FORM OF THEATER SAYS JEFF BERG CHAIRMAN OF INTERNATIONAL CREATIVE MANAGEMENT AGENCY A HOLLYWOOD POWERHOUSE THAT WORKS WITH THE PAIR BERMAN/KATZ'S CURRENT SHOWPIECE IS THE GUESS RANCH THAT CASUALWEARMAKER GEORGES MARCIANO HAS OPENED ON RODEO DRIVE THE PARTNERS BOTH 45 WORKED TO CREATE AN OLD WEST AMBIANCE THAT IN THEIR PARLANCE SELLS A STORY FOR GUESS NOTABLE FOR ITS ROLLINTHEHAY ADVERTISING THAT MEANT EVERYTHING FROM TEPEE DRESSING ROOMS TO A SIMULATED NATIONALPARK LODGE OBVIOUSLY THE HOLLYWOOD MODEL FOR BUSINESS GOES BEYOND THE ORGANIZATIONAL STRUCTURE AND INTO MARKETING CONCEPT IT CAN GET A LITTLE THICK BUT LISTEN TO THE PITCH DISCOUNTED GOODS ARE WIDELY AVAILABLE SO HIGHEND RETAILERS INCREASINGLY NEED TO INVOLVE THEIR CUSTOMERS IN AN EXPERIENCE TO GAIN AN EDGE IT DOESN'T HAVE TO BE A MAJOR SENSORY EVENT BUT SHOULD INVOLVE ASSOCIATION WITH PRODUCTS A CORPORATE IMAGE PARTICULARLY ONE THAT EXPRESSES AN ETHIC BODY SHOP BEN & JERRY'S PATAGONIA OR SIMPLY EVOKES NOSTALGIA PILLSBURY CAMPBELL SOUP CAN BE EXPLOITED WHETHER SEIZING ON CACHET WITH A STYLISH TAG OR LABEL OR INVOKING A SOCIAL CONSCIOUSNESS IT COMES DOWN TO THIS THE ONLY DIFFERENCE BETWEEN EIGHT PAIRS OF BLUE JEANS IN THE WINDOW IS THE IDENTITY THE ASSOCIATION SAYS MR KATZ OR AS MR BERG PUTS IT WITH RALPH LAUREN YOU'RE BUYING INTO A LIFE BUYING THE IVY LEAGUE DEGREE YOU NEVER GOT YOU SAY THAT'S SHAMELESS OLD MARKETING BUT WAIT IN HOLLYWOOD MANIPULATIVE IS A COMPLIMENT BECAUSE AUDIENCES PAY TO BE TRANSPORTED FROM EVERYDAY REALITY CREATING IDENTITY OUT OF WHOLE CLOTH THAT'S WHAT A GOOD MOVIE DOES MR KATZ SAYS IT MAY BE COMPLETELY FAKE BUT IF IT'S GOOD IF THE DETAIL IS THERE THEY ACCEPT IT HE DISPLAYS MOCKUPS FOR PARAMOUNT DESIGNED TO MAKE RETAIL PATRONS FEEL THEY'RE PART OF THE OLD STUDIO ATMOSPHERE IN FACT THE RECREATED MOTIF NEVER EXISTED THE MASTER OF ASSOCIATIONAL MAGIC IS WALT DISNEY CORP WHICH HAS LINKED FILMS AND AMUSEMENT PARKS TO A RANGE OF FANTASY MERCHANDISE WARNER BROS IS PLAYING CARTOON CATCHUP WITH ITS MALL STORES THE HANDFUL OF NIKE TOWN ESTABLISHMENTS SHOWS HOW A NONHOLLYWOOD COMPANY IN NIKE'S CASE ONE SELLING SIMPLY SHOES AND OTHER ATHLETIC WEAR CAN TURN INVENTORY INTO ART FOR SHORT STORIES BERMAN/WEST HAS DRAWN PLANS FOR SEVERAL PUSHCARTS SHAPED ACCORDING TO THEMES A MAILBOX FOR POSTCARDS A TELEPHONE FOR MESSAGE PADS AFTER THE FUN WORE OFF IN ONE LOCATION OR REGION THE CART COULD BE MOVED ON DOWN THE MALL HIERARCHY SOME THINGS ARE CUTE IN THE HEARTLAND LONG AFTER THEY'VE BORED THE COASTS THE RATE OF EMBRACE IS DIFFERENT EXPLAINS MS BERMAN AS THE DUO DESCRIBES IT ASSOCIATION WITH A PLACE AN EVENT AN INSTITUTION OR SIMPLY A MEMORY GIVES POWER TO THOSE WHO BUY A RELATED ITEM MAYBE THIS EXPLAINS WHY PEOPLE WEAR SOUVENIR TSHIRTS WHICH USUALLY AMOUNT TO A CONFESSION OR BOAST THAT THEY HAVE PAID FOR THE PRIVILEGE OF DOING SOMEONE ELSE'S ADVERTISING THIS PRACTICE HAS SUPPLEMENTED THE LONGSTANDING USE OF FASHION TO DENOTE STATUS OR HIPNESS AND THE NEED IT REPRESENTS FOR SOCIAL SHORTHAND CLEARLY EXCITES THE HOLLYWOOD IMAGINATION FOR US IMAGE IS PROFOUND SAYS MR KATZ UNIVERSAL STUDIOS' CITY WALK RETAIL ADJUNCT IN LOS ANGELES ON WHICH BERMAN/KATZ HAS WORKED SUGGESTS HOW SHOPPING AND DINING COMPLEXES BECOME EXTENSIONS OF ENTERTAINMENT THE FORUM SHOPS AT CAESAR'S PALACE IN LAS VEGAS IS ANOTHER EXAMPLE THE NEXT STAGE ACCORDING TO THE TWO PARTNERS MAY BE WHOLE CENTERS KEYED TO ACTIVITIES THAT DEFINE WHO WE ARE OR WANT TO APPEAR TO BE HIGHTECH ASSUREDLY HAS A BIG ROLE TO PLAY IN THE NEWWAVE SHOPPINGRECREATIONAL WORLD BUT MR KATZ WHO GOT HIS START DOING FLOATS FOR THE ROSE PARADE AND ONCE SERVED ON GOV JERRY BROWN'S IDEA STAFF ARGUES NO MATTER HOW GOOD THE TECHNOLOGY IS IF THE STORY DOESN'T WORK IT DOESN'T ENTERTAIN IT'S JUST A GAG THE ATTRACTIONS AT THE NEW LUXOR HOTEL IN VEGAS FAIL THAT TEST HE SAYS THEY WERE DESIGNED BY A TECHIE NOT A HOLLYWOOD CREATIVE TALENT STEVE WYNN'S MIRAGE HOTEL ON THE OTHER HAND HAS HEART ONE THING THAT ALL GATHERING GROUNDS MUST OFFER TODAY IS SAFETY THERE SHOULD BE SURPRISES AND SPONTANEITY BUT UNDERNEATH IT ALL CONSUMERS NEED TO BE CONFIDENT NOTHING BAD WILL HAPPEN TO THEM IT'S JUST A MOVIE MR KATZ VISITED A VIRGIN RECORDS SUPERSTORE AND NIKE TOWN IN COSTA MESA CALIF AND FOUND THE DEVELOPER WAS MOST EAGER TO POINT OUT HIS BRIGHTLY LIT PARKING STRUCTURE WHAT ALL THIS RAZZMATAZZ SEEMS TO LEAVE BEHIND ARE THE TRADITIONAL PUBLIC SPACES THE PARKS PLAZAS AND STREETS GOVERNMENT TURF PRESENTS A COUPLE OF BARRIERS TO HOLLYWOOD'S MARKETERS COMMERCIALIZATION IS GENERALLY BARRED AND IN MANY PLACES THERE'S DISORDER AND MENACE ONE EXCEPTION APPEARS TO BE AIRPORTS NOW BEGINNING TO ADOPT THE SELLING SPIRIT THEY ALSO OFFER SAYS MR BERMAN THE LARGEST BROADEST DEMOGRAPHIC MIX THAT EXISTS AND LOTS OF DOWNTIME OBVIOUSLY HOLLYWOOD IS GOING TO BE BUSY WITH ITS NEW BABY AMERICAN BUSINESS MIGHT WANT TO CATCH AN EARLY SHOW 9312210026 931221 WHO'S NEWS PERCEPTRON INC PERCEPTRON INC FARMINGTON HILLS MICH JAMES A RATIGAN 45 YEARS OLD WAS APPOINTED EXECUTIVE VICE PRESIDENT OF FINANCE AND OPERATIONS OF THIS DEVELOPER AND MARKETER OF MEASUREMENT AND GUIDANCE SYSTEMS MR RATIGAN HAS BEEN A DIRECTOR OF PERCEPTRON SINCE 1989 9312210025 931221 WHO'S NEWS DIED JOHN WHILEY ECKMAN 74 FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RORER GROUP INC NOW RHONEPOULENC RORER FRIDAY IN DEVON PA OF CANCER 9312210024 931221 ECONOMY OECD REDUCES FORECASTS OF '94 GROWTH FOR MOST DEVELOPED NATIONS EXCEPT US BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT RATCHETED DOWNWARD ITS ECONOMIC FORECASTS FOR MOST DEVELOPED NATIONS IN 1994 WITH THE EXCEPTION OF THE US IN RELEASING ITS SEMIANNUAL ECONOMIC OUTLOOK THE GROUP PREDICTED US GROSS DOMESTIC PRODUCT WOULD GROW 31 NEXT YEAR THE SAME AS IT FORECAST IN JUNE BUT THE PARISBASED OECD WHICH TRACKS AND PROMOTES ECONOMIC COOPERATION AMONG ITS 24 MEMBER COUNTRIES SLASHED ITS GROWTH ESTIMATE FOR JAPAN'S OUTPUT OF GOODS AND SERVICES TO 05 FROM 33 AND CUT GERMANY'S TO 08 FROM 14 OVER THE LONG TERM THE ORGANIZATION PROJECTED THAT UNEMPLOYMENT AMONG ITS MEMBERS NOW AT ABOUT 825 OF THE LABOR FORCE IS UNLIKELY TO FALL MUCH OVER THE NEXT TWO YEARS INFLATION IN INDUSTRIALIZED COUNTRIES IS LIKELY TO DECLINE TO ABOUT 225 IN 1995 FROM AN ESTIMATED 25 THIS YEAR INFLATION PROJECTIONS REMAINED ROUGHLY UNCHANGED FROM JUNE PROJECTIONS EXCEPT FOR JAPAN WHERE THE FORECAST WAS REDUCED TO 07 FROM 17 ASIDE FROM SOME WIDE VARIATIONS THE GROUP'S REPORT SAID FOR THE OECD AREA AS A WHOLE THE LOW POINT OF THE PRESENT CYCLICAL DOWNTURN MAY NOW HAVE PASSED IN PARTICULAR THE UNITED KINGDOM AUSTRALIA NEW ZEALAND AND SOME SMALLER EUROPEAN COUNTRIES ARE SEEING MODERATE IF UNSPECTACULAR RECOVERIES THE GROUP ATTRIBUTED THE INCREASINGLY SOLID EXPANSION IN NORTH AMERICA TO FALLING LONGTERM INTEREST RATES IN THE US AND GAVE THE CREDIT TO THE CLINTON ADMINISTRATION'S PLAN TO REDUCE THE BUDGET DEFICIT INDEED IN A WHITE HOUSE BRIEFING YESTERDAY ARRANGED TO CALL ATTENTION TO THE PRESIDENT'S ECONOMIC SUCCESSES LAURA D'ANDREA TYSON HEAD OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS SAID LOW INTEREST RATES WERE KEY SHE ATTRIBUTED VIRTUALLY ALL THE US GROWTH DURING THE SECOND HALF OF THIS YEAR TO INDUSTRIES THAT ARE SENSITIVE TO INTEREST RATES RESIDENTIAL CONSTRUCTION CONSUMER DURABLES AND PLANT AND EQUIPMENT SURGED IN RESPONSE TO LOWER LONGTERM INTEREST RATES SHE SAID FURTHER REDUCTIONS IN THE DEFICIT ARE NEEDED TO SUSTAIN THE US RECOVERY THE REPORT CAUTIONED SUCCESS WILL DEPEND IMPORTANTLY ON ACHIEVING SATISFACTORY REFORM OF THE HEALTHCARE SYSTEM THAT DOES NOT WEIGH ON BUDGET DEFICITS RATE CUTS HAVEN'T FUELED AN EXPANSION IN JAPAN WHERE THE VALUE OF JAPANESE ASSETS CONTINUES TO FALL THE OECD NOTED THAT THE JAPANESE SLOWDOWN IS OCCURRING EVEN AMIDST AGGRESSIVE GOVERNMENT REDUCTIONS IN INTEREST RATES THREE CUTS IN THE PAST 18 MONTHS TO HISTORIC LOWS IT IS THEREFORE NECESSARY TO REASSESS WHETHER THE EASING TO DATE IS SUFFICIENT TO ENSURE A RECOVERY THE REPORT SAID 9312210023 931221 WHO'S NEWS LONDON FOG CORP LONDON FOG CORP ELDERSBURG MD DOUGLAS C HILLMAN 47 YEARS OLD CURRENTLY CHIEF OPERATING OFFICER AT THE LONDON FOG INDUSTRIES UNIT OF THIS OUTERWEAR RETAILER WAS NAMED TO THE ADDITIONAL TITLE OF PRESIDENT SUCCEEDING MARK H LIEBERMAN WHO RETIRED IN APRIL LONDON FOG IS MAJORITY OWNED BY AN AFFILIATE OF MERRILL LYNCH & CO 9312210022 931221 AMERICAN EXPLORATION PLACEMENT HOUSTON AMERICAN EXPLORATION CO SAID IT COMPLETED A PRIVATE PLACEMENT OF 800000 DEPOSITARY SHARES OF CONVERTIBLE PREFERRED STOCK FOR NET PROCEEDS OF 196 MILLION PROCEEDS WILL BE USED TO REDUCE BANK BORROWING EACH DEPOSITARY SHARE WILL PAY A DIVIDEND OF 5625 CENTS AND IS CONVERTIBLE INTO AMERICAN'S FIVECENT PARVALUE COMMON STOCK AT A CONVERSION PRICE OF 150 AMERICAN IS AN OIL AND GAS COMPANY 9312210021 931221 ALCOA SETS CHARGE TOTALING 702 MILLION FOR FOURTHQUARTER PITTSBURGH ALUMINUM CO OF AMERICA STRUGGLING TO SLASH COSTS IN A MARKET FLOODED WITH INVENTORY SAID IT WILL TAKE A 702 MILLION FOURTHQUARTER CHARGE TO COVER JOB CUTS AND CLOSINGS THE BIG ALUMINUM PRODUCER WILL CUT 1600 HOURLY AND SALARIED EMPLOYEES OR NEARLY 3 OF ITS WORK FORCE THIS YEAR AND NEXT RESULTING IN A 594 MILLION CHARGE ALCOA ALSO IS ENDING SEVERAL ACTIVITIES INCLUDING MANUFACTURING ALUMINUM ROD IN ROCKDALE TEXAS WHICH WILL MEAN A CHARGE OF 108 MILLION ON A PERSHARE BASIS THE CHARGES TOTAL 80 CENTS IN THE YEAREARLIER PERIOD ALCOA HAD A LOSS OF 80 MILLION OR 94 CENTS A SHARE WHICH INCLUDED 129 MILLION IN CHARGES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ALCOA CLOSED AT 69625 DOWN 25 CENTS ALCOA IS UNDER A LOT OF PRESSURE TO CUT COSTS SAID CHARLES A BRADFORD AN ANALYST WITH UBS SECURITIES IT'S BEEN LOSING MAJOR BUCKS IN THE UNITED STATES ALCOA POSTED THIRDQUARTER NET INCOME OF 288 MILLION ALTHOUGH EARNINGS EXCLUDING SPECIAL ITEMS TOTALED ONLY 102 MILLION MR BRADFORD SAID ALCOA'S EARNINGS HAVE BEEN COMING FROM OVERSEAS OPERATIONS MAINLY ALUMINA PRODUCTION ALUMINA IS A RAW MATERIAL USED IN MAKING ALUMINUM LIKE OTHER ALUMINUM MAKERS ALCOA IS SUFFERING FROM LOW PRICES A RESULT OF A WORLDWIDE HUGE GLUT OF THE METAL THE OVERSUPPLY PARTLY STEMS FROM AN AVALANCHE OF ALUMINUM FROM PRODUCERS IN THE FORMER SOVIET UNION WHICH ARE EXPORTING BECAUSE OF A WEAK HOME ECONOMY AND THE LOSS OF THE SOVIET DEFENSE INDUSTRY AS A MAJOR CUSTOMER REPRESENTATIVES FROM SEVERAL REGIONS INCLUDING THE US CANADA THE EUROPEAN COMMUNITY AND RUSSIA ARE SCHEDULED TO MEET IN BRUSSELS JAN 18 AND 19 IN AN EFFORT TO RESOLVE THE SITUATION THEY'VE ALREADY MET TWICE AND FOUND NO SOLUTION 9312210020 931221 INTERNATIONAL SIEMENS STAKE IN CABLE MAKER BUDAPEST SIEMENS AG SAID IT ACQUIRED A MAJORITY STAKE IN HUNGARY'S STATE CABLE MAKER MKM AND PLANS TO INVEST IN ITS MODERNIZATION IN A PROGRAM VALUED AT 80 MILLION A SIEMENS DIVISION OESTERREICHISCHE KABELWERKE GMBH OF AUSTRIA OR OEKW BOUGHT 40 OF MKM'S SHARES FOR 211 BILLION FORINTS 215 MILLION AND IS ADDING A CAPITAL INCREASE OF 11 BILLION FORINTS FOR A 503 SHARE OF THE HUNGARIAN COMPANY AUSTRIA'S CREDITANSTALT SECURITIES IS PARTICIPATING IN THE STOCK PURCHASE WITH A 20 SHARE 9312210019 931221 MIT REJECTS GOVERNMENT PLAN TO SETTLE ANTITRUST SUIT INVOLVING FINANCIAL AID BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY REJECTED A PROPOSED ANTITRUST SETTLEMENT INVOLVING STUDENT FINANCIAL AID PROMPTING THE JUSTICE DEPARTMENT TO SAY IT WOULD PROCEED WITH ITS COURT CASE PEOPLE FAMILIAR WITH THE SITUATION SAID THAT MIT BALKED BECAUSE OF OBJECTIONS FROM SOME IVY LEAGUE SCHOOLS WHOSE FINANCIALAID PRACTICES WOULD ALSO BE AFFECTED BY THE SETTLEMENT TALKS ARE CONTINUING HOWEVER AND THE GOVERNMENT'S SETTLEMENT OFFER IS STILL ON THE TABLE THESE PEOPLE SAID THE CASE IN WHICH THE GOVERNMENT HAS ARGUED THAT MIT'S FINANCIALAID AWARDS WERE MADE COLLUSIVELY WITH OTHER SCHOOLS IS BEING CLOSELY WATCHED BY HIGHER EDUCATION INSTITUTIONS ITS OUTCOME IS EXPECTED TO DETERMINE THE WAY SCHOLARSHIPS FROM THE NATION'S BEST COLLEGES ARE AWARDED TO TOP HIGHSCHOOL GRADUATES THE GOVERNMENT ALLEGES THAT MIT ENGAGED IN ILLEGAL PRICEFIXING BY COMPARING NOTES WITH THE IVY LEAGUE SCHOOLS AND OTHER COLLEGES ON APPLICANTS AND THEN SETTING FINANCIALAID AWARDS SO THAT THE OUTOFPOCKET TUITION THAT THE STUDENTS PAID AT EACH SCHOOL WOULD BE THE SAME MIT SAID THAT IT NEEDED THE SYSTEM CALLED OVERLAP TO SPREAD SCARCE RESOURCES AROUND AND TO MAINTAIN SOCIALLY BENEFICIAL POLICIES THAT BASE AID ONLY ON NEED AND TO MEET STUDENTS' FULL NEED A FEDERAL APPEALS COURT IN SEPTEMBER REMANDED THE CASE TO US DISTRICT COURT IN PHILADELPHIA FOR FURTHER CONSIDERATION OF THE SOCIALWELFARE ARGUMENTS FROM THE BENCH YESTERDAY JUDGE LOUIS BECHTLE WHO ORIGINALLY RULED IN THE GOVERNMENT'S FAVOR SAID YESTERDAY THAT THE NEW TRIAL COULD BEGIN AS EARLY AS APRIL THE GOVERNMENT IS PREPARED TO ALLOW THOROUGH INFORMATION EXCHANGES BUT ONLY SO LONG AS MIT AND OTHER SCHOOLS THAT WOULD PARTICIPATE WILL BIND THEMSELVES TO NEEDBASED AID POLICIES ALTHOUGH MIT IS WILLING TO MAKE A FIRM COMMITMENT TO DO SO SAY PEOPLE FAMILIAR WITH THE TALKS SOME IVY LEAGUE SCHOOLS HAVE OBJECTED CAUSING MIT TO HESITATE THE IVY LEAGUE DARTMOUTH COLLEGE BROWN COLUMBIA CORNELL HARVARD PRINCETON YALE UNIVERSITIES AND THE UNIVERSITY OF PENNSYLVANIA ARE THE SCHOOLS WHOSE COOPERATION MIT MOST WANTS THEY HAVE PREVIOUSLY SETTLED WITH THE GOVERNMENT IN THE CASE ENDING OVERLAP FOR NOW BUT THEIR SETTLEMENT WOULD BE AMENDED BY AN MIT AGREEMENT SCOTT MASTEN A BUSINESS PROFESSOR AT THE UNIVERSITY OF MICHIGAN SAYS THAT MIT MAY HAVE GOTTEN 95 OF WHAT IT WANTED FROM THE GOVERNMENT BUT THE REMAINING 5 WAS INTOLERABLE MIT STILL THINKS THEY HAVE A GOOD SHOT IN COURT 9312210018 931221 WHAT'S NEWS WORLDWIDE SERBIA'S MILOSEVIC RETAINED HIS GRIP ON POWER AFTER NATIONAL ELECTIONS THE SERBIAN PRESIDENT AND HIS SOCIALIST PARTY BLAMED IN THE WEST FOR FUELING THE WAR IN THE FORMER YUGOSLAVIA APPEARED TO WIN A PARLIAMENTARY MAJORITY IN SUNDAY'S ELECTIONS THOUGH OPPOSITION CANDIDATES CHARGED VOTERIGGING MILOSEVIC'S APPARENT VICTORY ACHIEVED BY STIRRING CITIZENS' NATIONALIST PASSIONS CAME AS THE WARRING SIDES IN BOSNIA RESUME PEACE TALKS TODAY HOPING TO END INTERNATIONAL SANCTIONS AGAINST SERBIA MILOSEVIC HAS INDICATED HE WILL PUSH SERBS IN BOSNIA TO YIELD TO MUSLIM DEMANDS FOR MORE TERRITORY THE MUSLIMDOMINATED BOSNIAN GOVERNMENT REPEATED THAT IT WON'T SUBMIT TO ANY DIVISION OF THE CAPITAL SARAJEVO WHICH THE SERBS HAVE DEMANDED THE WHITE HOUSE DISCLOSED THAT A FILE DEALING WITH THE CLINTONS' INVESTMENT IN AN ARKANSAS REALESTATE DEVELOPMENT IS IN THE HANDS OF THEIR PERSONAL ATTORNEY WHITE HOUSE OFFICIALS SAID THAT THE FILE WAS AMONG PAPERS THAT HAD BEEN KEPT IN THE OFFICE OF DEPUTY COUNSEL FOSTER WHO COMMITTED SUICIDE IN JULY DEFENSE SECRETARY NOMINEE INMAN SENT A 6000 CHECK TO THE IRS FOR TAXES OWED ON WORK PERFORMED BY A PARTTIME HOUSEKEEPER FROM 1986 TO NOW THE WHITE HOUSE SAID IN A STATEMENT INMAN DISCLOSED THE PROBLEM WITH BACK TAXES AT THE OUTSET OF HIS DISCUSSIONS WITH THE WHITE HOUSE ACCORDING TO THE STATEMENT MIT REJECTED A PROPOSED ANTITRUST SETTLEMENT INVOLVING STUDENT FINANCIAL AID PROMPTING THE JUSTICE DEPARTMENT TO SAY IT WOULD PROCEED WITH ITS COURT CASE BUT TALKS CONTINUE AND THE GOVERNMENT'S SETTLEMENT OFFER IS STILL ON THE TABLE PEOPLE CLOSE TO THE CASE SAID RUSSIAN LEADERS MUST ADDRESS THE SOCIAL UNREST THAT HAS ACCOMPANIED THEIR REFORM EFFORTS A SENIOR WHITE HOUSE AIDE SAID INDICATING A SHIFT IN THE US APPROACH STROBE TALBOTT CLINTON'S CHIEF ADVISER ON RUSSIA SAID THE YELTSIN GOVERNMENT SHOULD ADOPT MEASURES TO EASE THE TRANSITION TO CAPITALISM CLINTON TOLD CITY MAYORS HELP IS ON THE WAY AS HE MADE A DOWN PAYMENT ON HIS PLEDGE TO PUT 100000 POLICE OFFICERS ON THE STREETS THE PRESIDENT AWARDED 50 MILLION IN GRANTS FOR 650 OFFICERS EXPANDING HIS ANTICRIME CAMPAIGN HE ALSO SIGNED THE NATIONAL CHILD PROTECTION ACT TO ESTABLISH A DATABASE THAT TRACKS CHILD ABUSERS A BOMB EXPLODED IN THE BEIRUT HEADQUARTERS OF LEBANON'S LARGEST CHRISTIAN POLITICAL PARTY DURING A LEADERSHIP MEETING OFFICIALS SAID TWO PEOPLE WERE KILLED AND 130 WOUNDED IN THE BLAST AT THE OFFICE OF THE PHALANGE PARTY WHICH HAS BEEN AT ODDS WITH LEBANON'S MUSLIM PRIME MINISTER THE IRA'S POLITICAL WING RAISED THE STAKES IN AN ANGLOIRISH PEACE EFFORT BY SAYING ALL PRISONERS JAILED FOR SECURITY OFFENSES MUST BE RELEASED AS PART OF ANY NORTHERN IRELAND ACCORD DEMOCRACY TALKS WERE STALLED IN SOUTH AFRICA ACCORDING TO A GOVERNMENT NEGOTIATOR WHO SAID THE CONSERVATIVE FREEDOM ALLIANCE HAD ACCUSED THE AFRICAN NATIONAL CONGRESS OF MAKING UNREASONABLE DEMANDS REGARDING ALLRACE ELECTIONS THE PARTIES HAD HOPED TO REACH AN ACCORD BEFORE TOMORROW'S PARLIAMENTARY VOTE ON A NEW CONSTITUTION THE UN GENERAL ASSEMBLY AGREED FORMALLY TO ESTABLISH THE WORLD'S FIRST HIGH COMMISSIONER FOR HUMAN RIGHTS A POST UNDER DISCUSSION FOR THE PAST 45 YEARS AS A WAY TO RESPOND QUICKLY TO MAJOR RIGHTS CRISES UKRAINE WILL DISMANTLE ALL 46 OF ITS LONGRANGE SS24 NUCLEARARMED MISSILES BY THE END OF 1994 BUT DOESN'T INTEND TO SHIP THEM TO RUSSIA AS REQUIRED BY AN ARMS REDUCTION PACT UKRAINE'S DEPUTY PREMIER SAID HIS ANNOUNCEMENT CAME TWO DAYS AFTER HE SAID TALKS WITH RUSSIA AND THE US YIELDED A PRELIMINARY ACCORD ON COMPENSATION US MILITARY CHIEF SHALIKASHVILI TOLD UN OFFICIALS IN MOGADISHU THAT THEY MUST PREPARE TO OPERATE ALONE IN SOMALIA AFTER WASHINGTON WITHDRAWS ALL ITS TROOPS BY MARCH 31 HE OFFERED NO ASSURANCES OF US HELP ACCORDING TO ONE UN OFFICIAL MEANWHILE GERMANY SAID IT ALSO WOULD PULL ITS TROOPS OUT BY THE END OF MARCH DIED W EDWARDS DEMING 93 QUALITY CONTROL EXPERT WHO HELPED REVOLUTIONIZE JAPAN'S MANUFACTURING EVEN AS HIS IDEAS WERE LARGELY IGNORED IN THE US IN WASHINGTON 9312210016 931221 LETTERS TO THE EDITOR BLAMING ISRAEL EASIER THAN FACING REALITY ONCE AGAIN A MUSLIM SPOKESMAN SPREADS THE OLD LIE THAT THE ISRAELIPALESTINIAN CONFLICT IS THE GREATEST SOURCE OF INSTABILITY IN THE MIDDLE EAST SULIMAN S OLAYAN EDITORIAL PAGE NOV 5 DOES HE FORGET THE DICTATORSHIP OF MURDERERS LIKE ASSAD OF SYRIA THE WARS BETWEEN IRAQ AND IRAN IRAQ'S GASSING OF ITS OWN CITIZENS AND ATTACK ON KUWAIT THE UNWILLINGNESS OF RICH MUSLIM COUNTRIES TO INVEST IN STRONG ECONOMIES FOR POOR ONES ALL OF WHICH HAVE NOTHING TO DO WITH ISRAEL NO MR OLAYAN SIMPLY BLAMES THE ISRAELIS FOR TRYING TO DEFEND THEMSELVES AGAINST 40 YEARS OF TERRORISM AND FULLSCALE ATTACKS BY ARAB NEIGHBORS YOUR FINE PUBLICATION CAN SURELY DO BETTER THAN THIS SORRY EXCUSE FOR JOURNALISM 9312210015 931221 INTERNATIONAL FRENCH CURRENT ACCOUNT SURPLUS PARIS FRANCE POSTED A SEASONALLY ADJUSTED CURRENT ACCOUNT SURPLUS OF 9 BILLION FRANCS 154 BILLION IN SEPTEMBER UNCHANGED FROM AUGUST ACCORDING TO FIGURES BY THE FRENCH ECONOMICS MINISTRY ON AN UNADJUSTED BASIS THE CURRENT ACCOUNT SURPLUS WIDENED TO 123 BILLION FRANCS IN SEPTEMBER FROM 73 BILLION FRANCS IN AUGUST IN THE YEAR THROUGH SEPTEMBER THE UNADJUSTED SURPLUS TOTALED 564 BILLION FRANCS WIDENING SUBSTANTIALLY FROM 47 BILLION FRANCS A YEAR AGO 9312210014 931221 NASDAQ SMALLORDER PLAN DRAWS PROTESTS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NASDAQ STOCK MARKET TRADING SYSTEM THAT WAS DESIGNED TO PROTECT SMALL INVESTORS IS IN NEED OF SOME PROTECTION ITSELF THE SMALL ORDER EXECUTION SYSTEM KNOWN AS SOES HAS BEEN FLOODED WITH SO MANY ORDERS THAT THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WHICH RUNS NASDAQ HAS ASKED THE SECURITIES AND EXCHANGE COMMISSION TO REDUCE THE SIZE OF ORDERS ELIGIBLE FOR TRADING ON THE SYSTEM THE SEC IN TURN HAS BEEN FLOODED WITH LETTERS FROM TRADERS INVESTORS AND OTHERS ARGUING AGAINST SUCH LIMITS ON SOES THE AGENCY WHICH IS SCHEDULED TO VOTE ON THE ISSUE TOMORROW HAS RECEIVED 512 LETTERS FROM TRADERS AND INVESTORS OPPOSED TO THE LIMITS AND 137 IN FAVOR ANOTHER 407 LETTERS RESPONDING TO A DIFFERENT SEC PROPOSAL ALSO CONTAINED COMMENTS MOSTLY NEGATIVE ON THE NASD PROPOSAL ACCORDING TO AN SEC STAFF MEMBER WHO SAID THE VOLUME OF MAIL MAY BE UNPRECEDENTED THE SOES TRADING SYSTEM WAS DESIGNED TO REPLACE TELEPHONE ORDERS WITH AN ELECTRONIC SYSTEM AND GIVE SMALL INVESTORS THE SAME ACCESS TO AND PRICES FOR NASDAQ STOCKS AS BIG TRADERS PARTICIPATION IN THE SYSTEM WAS VOLUNTARY FOR MARKETMAKERS WHEN SOES OPENED IN DECEMBER 1984 IT WAS MADE MANDATORY AFTER THE 1987 STOCKMARKET CRASH WHEN MANY SMALL INVESTORS SAID THEIR PHONE ORDERS WEREN'T EXECUTED BUT THE SYSTEM'S PROTECTIVE FEATURES HAVE ALL BUT DISAPPEARED IN THE HEAVY USAGE OF SOES BY ACTIVISTS AS THE NASD NOW CALLS TRADERS IT USED TO REFER TO AS SOES BANDITS ACTIVISTS' DOMINATION OF SOES IS INCREASING THE RISK OF MARKETMAKING AND HAVING EXTREME BAD EFFECTS IN VOLATILITY AND QUOTE SPREADS SAYS RICHARD KETCHUM NASD EXECUTIVE VICE PRESIDENT DESPITE THE OUTCRY AGAINST THE LIMITS WHICH WOULD BAR SHORTSELLING ON THE SYSTEM AND REDUCE THE SIZE OF ORDERS ELIGIBLE FOR SOES THE NASD IS CONVINCED THAT CHANGES ARE NECESSARY TO PREVENT ABUSES MR KETCHUM SAYS IN A SHORT SALE AN INVESTOR SELLS A BORROWED SECURITY IN HOPES OF REPLACING IT AT A LOWER PRICE AND THEREBY POCKETING THE DIFFERENCE CURRENT NASD RULES REQUIRE MARKETMAKERS TO AUTOMATICALLY EXECUTE CUSTOMERS' ORDERS OF 1000 SHARES OR FEWER ON THE SAME STATUS AS BIGGER ORDERS BECAUSE LARGE BROKERAGE FIRMS SUCH AS MERRILL LYNCH & CO HAVE AUTOMATED SYSTEMS INHOUSE SOES IS PRIMARILY USED BY SMALL BROKERAGE FIRMS BROKERS ARE PROHIBITED FROM SPLITTING UP CUSTOMERS' LARGER ORDERS TO SLIDE THEM UNDER THE 1000SHARE MAXIMUM INFRACTIONS OF THE RULES HAVE LED TO SEVERAL DISCIPLINARY ACTIONS BY THE NASD SOES HAS ALSO PROVEN EXTREMELY POPULAR AMONG DAY TRADERS INVESTORS WHO OPEN AND CLOSE MARKET POSITIONS IN THE SAME TRADING DAY HOPING TO PROFIT FROM SMALL MOVES IN THE SPREAD BETWEEN BID AND ASKED PRICES FOR SHARES MR KETCHUM SAYS THE NUMBER OF SOES ACTIVISTS HAS INCREASED DRAMATICALLY HE SAYS ONCE THE MARKET STARTS TO MOVE THE STRATEGY IS TO HIT THE MARKETMAKERS WITH WAVE AFTER WAVE OF ORDERS THE EFFECT IS PROFOUNDLY INJURIOUS TO THE NASDAQ MARKET TO DISCOURAGE DAY TRADERS THE NASD ALSO WANTS TO CUT THE MAXIMUM SIZE OF ORDERS ELIGIBLE FOR SOES TO 500 SHARES FROM 1000 HOPING THAT SMALLER LOTS WON'T BE WORTH THE TRADERS' WHILE THE AVERAGE ORDER FOR EVERYONE OTHER THAN SOES ACTIVISTS WAS WELL BELOW 500 SHARES MR KETCHUM SAYS WE FEEL THERE'S NOT GOING TO BE A BIG IMPACT ON THE PUBLIC IF THE SEC APPROVES THE LIMITS BECAUSE SOES ORDERS ARE EXECUTED AUTOMATICALLY A RAPID SUCCESSION OF SELL ORDERS EVEN IN 1000SHARE LOTS CAN QUICKLY LOWER A STOCK PRICE MAKING THE SYSTEM ATTRACTIVE TO SHORTSELLERS THE SEC AT ITS MEETING TOMORROW WILL ALSO CONSIDER THE NASD'S REQUEST TO PROHIBIT THE USE OF SOES FOR SHORT SALES 9312210013 931221 LETTERS TO THE EDITOR FASB A DECADE BEHIND INVESTMENT COMMUNITY THE NOV 16 ARTICLE FASB PROPOSES RULE MAKING IT HARDER FOR LBOS TO SELL THEIR STOCK TO PUBLIC ILLUSTRATES HOW THE FINANCIAL ACCOUNTING STANDARDS BOARD FASB CONTINUES TO BE ALMOST A DECADE BEHIND THE INVESTMENT COMMUNITY THE USERS OF FINANCIAL STATEMENTS THE FASB PREVENTS COMPANIES FROM INCLUDING INTEREST COSTS IN FIGURING WHETHER PROFITS CAN COVER GOODWILL AND THUS PREVENTING COMPANIES FROM TAKING A GOODWILL WRITEDOWN PRIOR TO A REVERSE LBO THE FASB FINALLY HAS COME TO RECOGNIZE THAT CAPITAL STRUCTURE IS NOT AS IMPORTANT AS THE EARNINGS OR EVEN BETTER CASH FLOW THAT IS GENERATED FROM A FIRM'S OPERATING ASSETS WHETHER THEY ARE FINANCED BY DEBT OR EQUITY GOODWILL BY DEFINITION IS THE EXCESS OF THE PRICE PAID FOR A BUNDLE OF ASSETS OVER THEIR IDENTIFIABLE FAIR VALUE THE FINANCING DECISION USED TO PURCHASE THOSE ASSETS IN NO WAY AFFECTS THEIR IDENTIFIABLE VALUE MOST SAVVY INVESTMENT PROFESSIONALS RECOGNIZE THAT CASH FLOW IS THE MEASUREMENT TOOL IN ASSESSING EARNINGS AS FAR AS RECORDED INTANGIBLES ON THE BALANCE SHEET THE STOCK MARKET GIVES A DAILY ASSESSMENT OF WHAT INTANGIBLE VALUE A COMPANY WARRANTS BY WAY OF PRICE TO TANGIBLE BOOK MULTIPLES EVEN THE FASB CAN RECOGNIZE THE DIFFERENCE BETWEEN COMPANY A THAT HAS NOT BEEN ACQUIRED THROUGH A PURCHASE BUT GENERATES A VERY HEALTHY RETURN ON ITS INVESTED CAPITAL AND COMPANY B WITH POOR RETURNS YET A HIGH VALUE OF RECORDED INTANGIBLES ON ITS BALANCE SHEET COMPANY A ALMOST ALWAYS HAS A MUCH HIGHER PRICE TO TANGIBLE BOOK MULTIPLE THE STOCK MARKET UNDERSTANDS THAT EXCESS RETURNS GENERATED ARE ATTRIBUTABLE TO THOSE ASSETS BRAND NAMES TECHNOLOGY WORK FORCE ETC OTHER THAN BASIC WORKING CAPITAL AND PLANT AND EQUIPMENT THAT CONTRIBUTE TO FIRM VALUE ONE WAY TO ALLOW THE FASB TO FOCUS ON IMPORTANT ISSUES IS TO ADOPT THE UK METHOD FOR IMMEDIATELY WRITING OFF GOODWILL AT THE TIME OF ACQUISITION THIS WILL SAVE ANALYSTS THE TIME OF HAVING TO REMOVE IT FOR OUR ANALYSIS AFTER IT IS RECORDED ON THE FINANCIAL STATEMENTS 9312210012 931221 MARKETING & MEDIA MARKETSCAN CHOCOLATE BAR SALES FALL SHARPLY ON ECONOMY MORE COMPETITION BY KATHLEEN DEVENY AMERICANS ARE CUTTING BACK ON CHOCOLATE THE SLUGGISH ECONOMY ALONG WITH GREATER COMPETITION FROM OTHER TYPES OF CANDY HAS HELPED TURN SNACKSIZED CHOCOLATE BARS INTO ONE OF THE FASTESTDECLINING CATEGORIES IN SUPERMARKETS TODAY SALES OF BAGS OF SMALL CANDY BARS DROPPED 157 DURING THE 13 WEEKS ENDED OCT 3 FROM A YEAR EARLIER ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE SALES OF REGULARSIZED CHOCOLATE BARS DECLINED 94 DURING THE SAME PERIOD SUPERMARKET SHOPPERS AVOIDED NEARLY EVERY MAJOR BRAND OF THE SMALL CANDY BARS DURING THE BACKTOSCHOOL SEASON HERSHEY FOODS CORP'S TOTAL SALES OF SNACKSIZED BARS DROPPED 81 DURING THE THIRD QUARTER WHILE SALES OF ITS ARCHRIVAL MARS INC'S BRANDS DECLINED 199 EVEN THOUGH IT HAS BEEN A MORE AGGRESSIVE COMPETITOR SINCE ITS ACQUISITION OF THE BUTTERFINGER AND BABY RUTH BRANDS IN 1990 SALES OF NESTLE SA'S SMALL BARS DROPPED 284 DURING THE QUARTER ONCE CONSIDERED IMMUNE TO ECONOMIC UPS AND DOWNS THE US CANDY MARKET IS BEING SQUEEZED ANALYSTS BLAME THE LACKLUSTER RESULTS ON THE SLUGGISH ECONOMY AND CONTEND THAT AN EXTREMELY HOT SUMMER IN EASTERN STATES AND FLOODING IN THE MIDWEST ALSO CURBED CHOCOLATE SALES IN JULY AND AUGUST AND BARGAINHUNTING SHOPPERS ARE NOW BUYING MORE CANDY IN MASSMERCHANDISERS AND WAREHOUSE CLUBS WHICH IS CUTTING INTO CANDY SALES IN SUPERMARKETS WHAT'S MORE HERSHEY IS FOCUSING ON PROMOTING HUGS A NEW BRAND EXTENSION OF THE POPULAR KISSES HUGS WHICH HAVE A WHITE CHOCOLATE COATING OVER MILK CHOCOLATE RANG UP SUPERMARKET SALES OF 54 MILLION IN THE QUARTER ACCORDING TO INFORMATION RESOURCES I THINK THAT SOME OF THE PEOPLE WHO USUALLY BUY THOSE SNACKSIZED CANDY BARS TRIED HUGS INSTEAD SAYS LEONARD TEITELBAUM AN ANALYST WITH MERRILL LYNCH & CO OTHERS HE SAYS MAY HAVE SCRATCHED CANDY FROM THEIR LISTS ALTOGETHER FOR ECONOMIC REASONS CANDY HE SAYS IS STILL CONSIDERED A LUXURY ITEM BY MANY PEOPLE BUT SOME INDUSTRY INSIDERS SAY THE PROBLEMS MAY RUN DEEPER THESE DAYS MANY KIDS ARE CHOOSING NONCHOCOLATE TREATS OVER TRADITIONAL CANDY BARS CANDY BUYERS AND DISTRIBUTORS SAY KIDS ARE KEENLY INTERESTED IN SUCH SUGARY NOVELTIES AS BRACH'S ROCKS CANDIES THE FRUITFLAVORED SWEETS WITH ROCKCOLORED CANDY SHELLS THAT WERE INTRODUCED LAST SUMMER BY EJ BRACH CORP EVEN OLDFASHIONED LICORICE INCLUDING HERSHEY'S TWIZZLERS BRAND HAS BEEN A STRONG SELLER MOST KIDS NOWADAYS AREN'T INTO CHOCOLATE SAYS A CANDY BUYER FOR ONE LARGE RETAIL CHAIN MY JOB NOW IS POUNDING THE PAVEMENT IN SEARCH OF NEW NOVELTY ITEMS KENNETH L WOLFE HERSHEY'S PRESIDENT CONCEDES THAT THE TOTAL US CONFECTIONERY MARKET HAS BEEN WEAK IN 1993 AND THAT SALES OF CHOCOLATE CANDY HAVE BEEN SOFTER THAN SALES OF SUGAR CONFECTIONS MR WOLFE CITED THE WEAK ECONOMY WHICH IS DISCOURAGING SHOPPERS FROM BROWSING IN STORES THUS LIMITING THE OPPORTUNITY FOR IMPULSE PURCHASES HE ADDS THAT THE THIRD QUARTER APPEARS WEAK IN COMPARISON TO THE YEAR EARLIER PARTLY BECAUSE 1992 WAS A VERY STRONG YEAR FOR HERSHEY BECAUSE OF SEVERAL NEW PRODUCT LAUNCHES THERE IS NO DOUBT THAT THE CONFECTIONERY MARKET HAS BEEN GENERALLY SOFT MR WOLFE SAYS BUT WE HAVE BEEN FARING WELL RELATIVE TO COMPETITORS EXECUTIVES AT MARS AND NESTLE COULDN'T BE REACHED FOR COMMENT THE LIST OF FASTESTDECLINING PRODUCTS COMPILED EXCLUSIVELY FOR THE WALL STREET JOURNAL IS BASED ON SCANNER DATA GATHERED FROM SUPERMARKETS EACH QUARTER INFORMATION RESOURCES BASED IN CHICAGO RANKS 323 CATEGORIES WITH ANNUAL SALES OF AT LEAST 100 MILLION BY PERCENTAGE CHANGE IN DOLLAR VOLUME FROM THE YEAREARLIER PERIOD DOLLAR SALES OF GROCERY PRODUCTS OFTEN DECLINE FOR A VARIETY OF REASONS SALES OF FROZEN ORANGE JUICE WERE SQUEEZED DURING THE QUARTER FOR EXAMPLE AS SOME CONSUMERS SWITCHED TO REFRIGERATED VARIETIES BUT THE DECLINE WAS EXAGGERATED BY FALLING PRICES CAUSED BY PLUMMETING ORANGE PRICES ALTHOUGH DOLLAR SALES DECLINED 19 DURING THE QUARTER UNIT SALES DECLINED BY JUST 99 CHANGING SHOPPING HABITS HAVE CUT SHARPLY INTO SUPERMARKET SALES OF CIGARETTE CARTONS AND INDIVIDUAL PACKS WHICH DECLINED 157 AND 156 RESPECTIVELY TOBACCO CONSUMPTION IS DECLINING AT A MUCH SLOWER RATE ONLY 2 TO 3 A YEAR IT SEEMS SMOKERS NOWADAYS ARE MUCH MORE LIKELY TO PICK UP A PACK AT CONVENIENCE STORES WHICH HAVE BEEN ACTIVELY COURTING SMOKERS WITH LOWER PRICES ON MAJOR BRANDS A BROAD SELECTION OF BUDGET BRANDS AND THEIR OWN PRIVATELABEL SMOKES CONSUMERS' HEALTH CONCERNS CUT INTO QUARTERLY SALES OF CHUNKY PEANUT BUTTER DOLLAR SALES OF THE SPREADS DROPPED 174 AND UNIT SALES DECLINED SLIGHTLY MORE PARTLY BECAUSE SOME CALORIECONSCIOUS ADULTS NOW SLATHER A LITTLE LESS OF THE FATLADEN SPREAD ON EACH SANDWICH SALES OF CREAMY PEANUT BUTTERS MEANWHILE DECLINED 117 9312210011 931221 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ADVANCED TISSUE SCIENCES INC AN OFFERING OF 25 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES DILLON READ & CO AND SMITH BARNEY SHEARSON INC FLORIDA PROGRESS CORP A SHELF OFFERING OF 45 MILLION COMMON SHARES PET FOOD WAREHOUSE INC AN OFFERING OF 3151612 COMMON SHARES VIA DAIN BOSWORTH INC AND JOHN G KINNARD & CO SOUTHERN PACIFIC RAIL CORP AN OFFERING OF 25 MILLION COMMON SHARES VIA MORGAN STANLEY & CO KIDDER PEABODY & CO AND SALOMON BROTHERS INC TRACTOR SUPPLY CO AN INITIAL OFFERING OF 2640000 COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP 9312210010 931221 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED DEC 17 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER CALIFORNIA POLLUTION CONTROL FINANCING AUTHORITY WILL REDEEM ON FEB 1 1994 30000 PRINCIPAL AMOUNT OF ITS 745 POLLUTION CONTROL REVENUE BONDS FOR SMALL BUSINESSES 1980 SERIES A3 AND A4 DUE FEB 1 2000 THE CALIFORNIA STATE TREASURER IS TRUSTEE CALVERT COUNTY COMMISSIONERS MD WILL REDEEM ON JAN 20 1994 ITS 5 5/8 POLLUTION CONTROL REVENUE BONDS 1973 SERIES DUE AUG 15 1998 MARYLAND NATIONAL BANK BALTIMORE IS TRUSTEE LOS ANGELES COMMUNITY REDEVELOPMENT AGENCY WILL REDEEM ON JAN 15 1994 5115000 PRINCIPAL AMOUNT OF ITS RESIDENTIAL MORTGAGE REVENUE BONDS 1979 SERIES A BANK OF AMERICA GLENDALE CALIF IS TRUSTEE WASHINGTON PUBLIC POWER SUPPLY SYSTEM WILL REDEEM ON JAN 18 1994 THE FOLLOWING NUCLEAR PROJECT NO 1 REVENUE BONDS SERIES 1978A DUE JULY 1 OF THE INDICATED YEARS 510 DUE 1994 AND 1995 52 DUE 1996 AND 1997 525 DUE 1998 53 DUE 1999 54 DUE 2000 AND 2001 55 DUE 2002 58 DUE 2010 AND 5875 DUE 2017 MORGAN GUARANTY TRUST CO NEW YORK IS BOND FUND TRUSTEE 9312210009 931221 HAVING NIGHTMARES CHANCES ARE THEY ARE ABOUT YOUR JOB RECURRING BAD WORKDREAMS DOG CHEFS AND ARCHITECTS EVEN DENTISTS FEEL PAIN BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL ALL ALONE IN THE DINING ROOM OF CHEZ PANISSE IN BERKELEY CALIF THE RESTAURANT'S FAMOUS CHEF ALICE WATERS HAS TO ATTEND TO HUNGRY CUSTOMERS ALL BY HERSELF THE WAITERS HAVE VANISHED BUSBOYS ARE NOWHERE TO BE SEEN RUSHING TO THE KITCHEN MS WATERS FINDS HERSELF ALONE THERE TOO NO SOUSCHEF NO KITCHEN HELP AND WORST OF ALL NO FOOD IF THAT SOUNDS LIKE A RESTAURATEUR'S WORST DREAM THAT'S JUST WHAT IT IS A RECURRING JOBRELATED NIGHTMARE THAT MS WATERS SAYS DISTURBS HER SLEEP EVERY FEW NIGHTS THERE'S THIS HORRIFYING MOMENT OF REALIZATION THAT THE FOOD IS NOT READY IT'S NOT READY AND ALL THOSE HUNGRY PEOPLE ARE OUT THERE SHE SAYS IN A TREMULOUS VOICE CAJUN CHEF PAUL PRUDHOMME HAS HIS OWN VERSION OF THE RESTAURANT DREAM BUT IN HIS THE KITCHEN AIR IS THICK AS JELLY YOU'RE PUSHING IT AWAY TRYING TO MAKE THINGS HAPPEN AND YOU CAN'T HE SAYS DREAMS IT SEEMS ARE AN OCCUPATIONAL HAZARD FOR PROFESSIONALS AND WAGE SLAVES OF ALL SORTS DENTISTS FOR EXAMPLE DON'T JUST CAUSE NIGHTMARES THEY HAVE THEM SO DOES A RANGE OF PROFESSIONALS FROM ARCHITECTS TO ZOO KEEPERS THEIR JOBS PROVIDING SUBJECT MATTER FOR THEIR DREAM WORK YOUR DREAM LIFE PARALLELS YOUR WORKING LIFE SAYS RITA DWYER A DIRECTOR OF THE ASSOCIATION FOR THE STUDY OF DREAMS A NONPROFIT GROUP OF SLEEP SPECIALISTS IN VIENNA VA ALTHOUGH SCIENTIFIC INTEREST IN DREAMS IS AT ITS PEAK AND BOOKS ON THE SUPPOSED MEANING OF DREAMS ABOUND NOT MUCH STUDY HAS BEEN DONE ON JOBRELATEDNESS BUT WITH COMPANIES LAYING OFF EMPLOYEES AND THE JOB MARKET SCARY EVEN DURING DAYLIGHT HOURS WORKERS AND THERAPISTS ARE STARTING TO COMPARE NOTES ABOUT THINGS THAT GO BUMP IN THE NIGHT MILTON KRAMER DIRECTOR OF THE SLEEP DISORDERS CENTER OF BETHESDA HOSPITAL IN CINCINNATI SAYS HE HAS DREAMED A DREAM COMMON AMONG DOCTORS IN WHICH AN ANGRY PATIENT QUITS THERAPY ON THE WAY OUT HE POINTS OUT THAT MY PANTS HAVE FALLEN DOWN DR KRAMER A PSYCHIATRIST SAYS ADDING THIS INTERPRETATION IT'S MY FEAR OF MY PATIENT EXPOSING ME AND MY INCOMPETENCE JOB DREAMS OFTEN ARE A FAR CRY FROM THE HEROIC DAYDREAMS OF JAMES THURBER'S WALTER MITTY THEY ARE MORE ON THE ORDER OF THE WELLNIGH UNIVERSAL TEST ANXIETY DREAM THAT MANY PEOPLE HAVE FOR YEARS AFTER GRADUATION DAY AT THE AGE OF 77 NOBEL PRIZEWINNING BIOLOGIST FRANCIS CRICK STILL DREAMS OF TAKING AN EXAM FOR WHICH YOU'RE NOT PREPARED AND YOU FAIL NO WONDER AEROBICS INSTRUCTORS' NIGHTS ARE FILLED WITH MISSING SNEAKERS CRACKS IN THE STAGE SWALLOW UP MUSICIANS' SHEET MUSIC ARCHITECTS TOSS AND TURN ABOUT MISTAKEN MEASUREMENTS THAT CAUSE BUILDINGS TO TOPPLE ANDREA CONWAY AN ACROBAT ON TOUR WITH THE CANADIAN CIRCUS CIRQUE DU SOLEIL HAS A COMMON PERFORMANCE NIGHTMARE I'M ON STAGE AND ALL OF A SUDDEN THE SHOW IS DIFFERENT AND I DON'T KNOW WHAT I'M DOING THERE OF COURSE NOT EVERY JOB INSPIRES COMMON DREAMS OR EVEN VARIATIONS ON A THEME ECONOMISTS IT IS SAID DON'T DREAM A COLLECTIVE DREAM OR HAVE ANY PARTICULAR INCUBUS NO FREDDY KRUEGER NO FREDDIE MAC BILL GILMER A SENIOR ECONOMIST WITH THE FEDERAL RESERVE BANK IN HOUSTON SAYS MAYBE THAT IS BECAUSE ECONOMISTS AREN'T CREATIVE ENOUGH TO CONJURE ONE UP WE JUST SORT OF CLUNK OUT AT NIGHT AND START OUT AGAIN THE NEXT MORNING BERNARD WEINSTEIN AN ECONOMIST AT THE UNIVERSITY OF NORTH TEXAS IN DENTON SAYS HE DREAMS OF EVERYTHING BUT THE DISMAL SCIENCE I DREAM OF WHAT I REALLY WANT TO BE HE SAYS A STANDUP COMEDIAN OR A JAZZ MUSICIAN DREAMS FEED ON PHYSICAL ACTIVITY AND PROPS ZOOS ARE RICH IN THE MATERIAL THAT THE BRAIN CAN TWIST AND TURN INTO DREAMSCAPES IN THE DREAMS OF VALERIE THOMPSON A KEEPER AT THE SAN DIEGO ZOO THE ANIMALS ARE IN JEOPARDY KOALAS ESCAPE ANTELOPES MAKE SUICIDAL LEAPS AND GIRAFFES ARE MORTALLY WOUNDED AFTER A NIGHT IN THIS VIOLENT BESTIARY MS THOMPSON IS EXHAUSTED SHE SAYS YOU FEEL LIKE YOU NEVER LEFT WORK AND SHE FEELS CHEATED THIS WAS SUPPOSED TO BE MY TIME TO ESCAPE THE ZOOLOGICAL NIGHTMARES OF NORBERTO CASTRO HAVE HIM SWEATING OVER THE HUMAN VISITORS MR CASTRO AN ASSISTANT CURATOR AT THE AUDUBON INSTITUTE IN NEW ORLEANS DREAMS OF A FIVETON ELEPHANT NAMED SNEEZY RUNNING AMOK MR CASTRO WAKES UP RELIEVED THAT THE ELEPHANT ISN'T ACTUALLY RAMPAGING BUT THE IMAGE PERSISTS IN HIS WAKING THOUGHTS THE ARCHITECTS' DREAMS ONE HEARS ABOUT ARE REMINISCENT OF A DISNEY ANIMATED FEATURE ALADDIN MAYBE MEASUREMENTS ON BLUEPRINTS COME ALIVE THERE ARE NUMBERS DANCING ALONG SAYS DONALD RATTNER OF THE NEW YORK FIRM FERGUSON MURRAY & SHAMAMIAN ARCHITECTS IN A RECENT DREAM OF HIS THE BASEBOARDS OF A HOUSE PUT ON A SHOW BANGING AGAINST A KITCHEN CABINET KENNETH NEWBERRY WHO HELPED DESIGN GEORGE AND BARBARA BUSH'S NEW HOUSE IN HOUSTON FOR THE FIRM EUBANKS BOHNN SAYS HIS FLOOR PLANS SOMETIMES GET OUT OF WHACK IN THE NIGHT IN THE DREAMS THE NUMBERS DON'T ADD UP BOTH ARCHITECTS SAY THEY ALSO EXPERIENCE EUPHORIC FLYING DREAMS MR NEWBERRY HIS ARMS SPREAD WIDE MEETS CLIENTS ALOFT THOUGH NEVER THE BUSHES I LOVE IT WHEN I WAKE UP AND I'VE BEEN FLYING THE PLEASANT WORK DREAM IS THE EXCEPTION EXPERTS SAY REALESTATE BROKERS DREAM ON A GRAND SCALE AND IN AT LEAST ONE CASE WITH HAPPY ENDINGS WENDY SARASOHN OF THE CORCORAN GROUP IN NEW YORK DREAMED THAT KEVIN COSTNER BECOMES A CLIENT OF HERS HE WANTS A 1 MILLION APARTMENT HE PICKS HER UP IN A LIMOUSINE HE BRINGS ALONG HIS ACTOR FRIEND DON JOHNSON WHO WANTS TO BUY A PLACE TOO BOTH BUY PENTHOUSES AND SWOOP MS SARASOHN OFF TO HOLLYWOOD TO BECOME A MOVIE STAR THEY HAVE THE PERFECT PART FOR ME SHE SAYS DENTISTS' NIGHTMARES TEND TO INVOLVE PAIN THEIR OWN AS WELL AS PATIENTS' ARNOLD GELFAND A NEW ORLEANS DENTIST SAYS HE SEES PHOBIC FACES IN THE NIGHT WE'RE IN A PROFESSION WHERE THERE'S A HIGH DEGREE OF ANXIETY AMONG CERTAIN PEOPLE BALTIMORE DENTIST HARVEY SOLOMON SAYS THAT KIND OF PATIENT CAN RUIN YOUR DAY HE HAS BAD DREAMS TOO ABOUT THE SCAREDYCATS YOU CAN'T EVEN ANESTHETIZE THEM BECAUSE THEIR ADRENALINE FLOATS OUT OF THEIR EARS THE SLEEP OF SOME WRITERS IS FILLED WITH MONSTERS OF A PARTICULARLY VICIOUS SORT WHO PRACTICE SUBTLE TORTURES AND WORSE CATHERINE BOWMAN A NEW YORK POET DREAMS SHE IS WALKING NERVOUSLY DOWN A DARK STREET SUDDENLY A GANG OF MASKED MARAUDERS JUMPS FROM A CORNER AND STABS HER REPEATEDLY IN THE RIGHT ARM THE ONE SHE WRITES WITH THEIR FACES ARE HIDDEN SHE SAYS BUT THEY ARE EDITORS 9312210008 931221 GREYHOUND SEES NET BELOW EXPECTATIONS DUE TO DISCOUNT FARES DALLAS GREYHOUND LINES INC SAID ITS 1993 EARNINGS WOULD BE FAR BELOW INDUSTRY ANALYSTS' PROJECTIONS BECAUSE OF DISCOUNTFARE PROMOTIONS DESIGNED TO BOOST RIDERSHIP THE BUS COMPANY MADE THE ANNOUNCEMENT AFTER THE CLOSE OF TRADING MONDAY GREYHOUND SHARES CLOSED AT 12875 A SHARE DOWN 125 CENTS IN TRADING ON THE AMERICAN STOCK EXCHANGE WITH THE HOLIDAY TRAVEL SEASON IN FULL SWING GREYHOUND SAID IT WAS NOT MAKING A FINAL YEAREND EARNINGS ESTIMATE BUT SAID IT EXPECTS 1993 EARNINGS TO BE BELOW LAST YEAR'S NET INCOME OF 96 CENTS A SHARE ON A FULLY DILLUTED BASIS OR 110 A SHARE ON A PRIMARY BASIS INDUSTRY ANALYSTS HAD PROJECTED A PRIMARY NET INCOME OF ABOUT 117 A SHARE FOR 1993 SUFFERING FROM DECREASED RIDERSHIP GREYHOUND IN SEPTEMBER LOWERED THE QUALIFYING AGE FOR ITS SENIORCITIZEN DISCOUNTS AND INITIATED A BROAD PROGRAM OF DISCOUNTED FARES OFFERING UP TO 50 FOR TICKETS PURCHASED 14 DAYS IN ADVANCE ALTHOUGH THAT LED TO AN 81 INCREASE IN REVENUE PASSENGER MILES DURING NOVEMBER THE BOOST WAS NOT ENOUGH TO ERASE EARLIER DECLINES FOR THE FIRST 11 MONTHS OF 1993 GREYHOUND RECORDED 54 BILLION REVENUE PASSENGER MILES DOWN 21 FROM 55 BILLION FOR THE FIRST 11 MONTHS OF 1992 A REVENUE PASSENGER MILE IS ONE PASSENGER TRAVELING ONE MILE AMID THE DISCOUNTS GREYHOUND SAID ITS YIELD FOR THE FIRST 11 MONTHS FELL 125 TO 951 CENTS PER PASSENGER MILE FROM 963 CENTS IN THE YEAREARLIER PERIOD PHILLIP TAFF EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID THE COMPANY DID NOT INTEND TO CHANGE ITS DISCOUNT PROGRAMS AND HOPED THAT THEY CONTINUE TO BOOST RIDERSHIP 9312210007 931221 BOEING UNION CHIEF RECEIVES PRISON TERM FOR EMBEZZLING FUNDS SEATTLE TOM BAKER FORMER LONGTIME CHIEF OF BOEING CO'S LARGEST UNION WAS SENTENCED BY A FEDERAL JUDGE HERE TO A YEAR AND A DAY IN PRISON FOR EMBEZZLING ABOUT 33500 OF THE UNION'S MONEY FROM MAY 1989 THROUGH OCTOBER 1991 MR BAKER 57 YEARS OLD PLEADED GUILTY THREE MONTHS AGO TO TWO COUNTS OF EMBEZZLEMENT AND AGREED TO PAY RESTITUTION TO THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS THE UNION REPRESENTS ABOUT 33000 EMPLOYEES OF SEATTLEBASED BOEING THE AIRCRAFT MAKER MR BAKER WAS CHARGED WITH TRADING 25 FIRSTCLASS AIRLINE TICKETS FOR ECONOMY CLASS THEN FALSIFYING UNION TRAVEL AND EXPENSE RECORDS TO MAKE IT APPEAR AS THOUGH HE HAD USED THE ORIGINAL TICKETS MR BAKER KEPT THE DIFFERENCE SAID HARRY MCCARTHY AN ASSISTANT US ATTORNEY WHO PROSECUTED THE CASE MR BAKER IS VERY EMBARRASSED AND SAD THAT HIS CAREER ENDED THIS WAY AND IS APOLOGETIC TO THE UNION MEMBERSHIP TO WHICH HE DEVOTED 35 YEARS OF HIS ADULT LIFE SAID HIS ATTORNEY WILLIAM FLIGELTAUB MR BAKER INTENDS TO PAY FULL RESTITUTION THE ATTORNEY SAID MR BAKER RAN THE UNION'S DISTRICT 751 FOR 12 YEARS HE DROPPED A REELECTION BID LAST YEAR AMID ALLEGATIONS OF MISMANAGEMENT BUT CONTINUED TO WORK FOR THE UNION UNTIL HE WAS SUSPENDED AFTER HIS GUILTY PLEA IN SEPTEMBER THE SENTENCE HANDED DOWN BY US DISTRICT JUDGE WILLIAM L DWYER ALSO INCLUDED ONE YEAR OF SUPERVISED RELEASE AFTER THE PRISON TERM MR BAKER FACED A MAXIMUM PENALTY OF FIVE YEARS IN JAIL AND 500000 IN FINES 9312210006 931221 WHO'S NEWS GLYCOMED INC GLYCOMED INC ALAMEDA CALIF BRIAN ATWOOD 41 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF PRESIDENT AND CHIEF OPERATING OFFICER OF THIS BIOTECHNOLOGY COMPANY MR ATWOOD A FOUNDER OF GLYCOMED HAD BEEN SENIOR VICE PRESIDENT OF OPERATIONS 9312210005 931213 LEISURE & ARTS TELEVISION TED TURNER'S FRONTIER TALES BY DOROTHY RABINOWITZ SOME TIME AGO IT APPARENTLY CAME TO TED TURNER THAT HE HAD BEEN GIVEN A VAST COMMUNICATIONS SYSTEM IN ORDER TO BRING PEACE TO WARRING NATIONS AND FOSTER UNDERSTANDING THE LATEST RESULTS ARE NOW BEFORE US THE BROKEN CHAIN WHICH AIRED ON TNT LAST NIGHT AND GERONIMO THE WEEK BEFORE ARE THE FIRST FRUITS OF MR TURNER'S EPIC PLAN TO USE HIS NETWORK TO PRESENT PROGRAMMING THAT WILL PROVIDE AN EDUCATIONAL VIEW OF NATIVE AMERICANS THAT WILL GO BEYOND THE MYTHS IT WOULD HAVE BEEN MORE PRECISE BY FAR TO SAY THAT THIS EFFORT IS DEDICATED TO REPLACING OLD MYTHS ALONG WITH MANY INCONVENIENT FACTS WITH NEW ONES THE CENTRAL FEATURE OF THIS NEW MYTHOLOGY WHICH HAS BEEN AROUND FOR SOME TIME HOLDS THAT THE INDIANS THE APACHES INCLUDED WERE DEVOUTLY PEACEFUL AND INNOCENT FOLK SEEKING ONLY TO EXTEND THE HAND OF FRIENDSHIP TO THE SETTLERS UNTIL THE WHITE MAN'S BRUTALITY TAUGHT THEM TO PURSUE THE PATH OF SAVAGERY IN THE TURNER PRODUCTIONS' VIEW OF FRONTIER HISTORY FOR INSTANCE IT IS EXCLUSIVELY THE WHITE MAN WHO TAKES SCALPS AND SPEARS BABIES AT AN EARLY POINT IN THE FILM THE PROTOGANDHI KNOWN AS GERONIMO FACES DOWN AN ENTIRE COMPANY OF MEXICAN SOLDIERS WHO STAND THREE FEET AWAY PUMPING BULLETS INTO HIS BODY NONE THE WORSE FOR WEAR THE APACHE WARRIOR LUNGES INTO BATTLE AND WINS THE DAY FOR IN ONE OF THE MORE NOTABLE EXAMPLES OF THE TURNER ORGANIZATION'S DEDICATION TO GETTING BEYOND THE MYTHS IT OFFERS US A GERONIMO WHOSE BODY IS IMMUNE TO DAMAGE BY BULLETS THE SECOND FILM THE BROKEN CHAIN IS ABOUT THE IROQUOIS LEAGUE OF INDIAN NATIONS AND THE SPIRITUAL STRUGGLES OF TWO MOHAWK WARRIORS THIS IS SOMETHING OF AN IMPROVEMENT OVER THE FIRST THOUGH BARELY THE SCHOLARLY RESEARCH AND OUTLOOK FROM WHICH THIS SCRIPT GREW ANNOUNCED THEMSELVES CLEARLY IN THE PRODUCTION NOTES DISTRIBUTED TO THE MEDIA THE VALUE OF SUCH NOTES SHOULDN'T BE UNDERESTIMATED THEY ARE OFTEN SO RICH A REPOSITORY OF CLUES TO THE MULTIPLE CONFUSIONS AND AGENDAS OF THE CREATIVE MINDS IN TELEVISION IT IS A WONDER THAT PUBLICISTS WANT TO DISTRIBUTE THEM INSTEAD OF SAY HIDING THEM AWAY SOMEWHERE IN THE NOTES FOR THE BROKEN CHAIN AN EXECUTIVE PRODUCER EXPLAINS THAT HE LEARNED IN A BOOK ON NATIVE AMERICAN HISTORY READ DURING A PLANE TRIP THAT THE IROQUOIS LEAGUE OF INDIAN NATIONS WAS THE MODEL FOR WHAT BECAME THE US CONSTITUTION IT ISN'T PARTICULARLY SURPRISING THAT THE PRODUCER SHOULD HAVE ENCOUNTERED THIS CLAIM NOR EVEN THAT HE RECORDED IT WITH NO APPARENT SKEPTICISM THE VISION AND POLITICAL VALUES THAT WENT INTO THIS FILM AND THE ONE BEFORE IT AREN'T BY NOW NEW THE NOTION THAT THE IROQUOIS CONFEDERATION WAS THE INSPIRATION AND MODEL FOR THE CONSTITUTION HAS BEEN PEDDLED IN THE SCHOOLS FOR SOME YEARS NOW AS PART OF THE MULTICULTURAL CURRICULUM THOSE AROUND AT THE TIME WON'T SOON FORGET THE EXPERT CONSULTANT TO THE FAMED COMMITTEE APPOINTED BY THE NEW YORK STATE COMMISSIONER OF EDUCATION A FEW YEARS BACK IN ORDER TO FERRET OUT VIOLATIONS OF MULTICULTURAL DOGMA THIS EXPERT A PHD IN EDUCATION COMPLAINED DURING A MEETING WITH FELLOW OVERSEERS OF THE CURRICULUM THAT SCHOOLCHILDREN WERE ALWAYS TAUGHT ABOUT EUROPEANS MAKING VOYAGES OF EXPLORATION TO THE NEW WORLD BUT THEY WERE NEVER TAUGHT THAT THE NATIVE AMERICANS WERE AT THE SAME TIME ALSO MAKING THEIR OWN VOYAGES OF EXPLORATION TO EUROPE AND HOW HE WAS ASKED LATER HAD THEY FARED CROSSING THE ATLANTIC IN THEIR CANOES HE WAS NOT NECESSARILY SAYING THINGS HAPPENED THAT WAY CAME THE REPLY THOUGH HE HAD RECENTLY COME ACROSS SOME EYEOPENING RESEARCH ON THE SUBJECT HE ONLY MEANT TO SAY THIS SCHOLAR CONTINUED THAT NATIVE AMERICANS' EXPLORATORY VOYAGES TO THE OLD WORLD SHOULD AT LEAST BE PUT OUT THERE AS A POSSIBILITY FOR THE STUDENTS IN THE NEW DISPENSATION IN SHORT HISTORY IS TO BE TAUGHT AS A GRAB BAG OF INSPIRATIONAL SCENARIOS TO WHICH FACTS ARE IRRELEVANT IF THEREFORE SCHOOLCHILDREN IN MANY PARTS OF THE NATION ARE NOW LEARNING AS THEY ARE THAT THAT EMBODIMENT OF QUINTESSENTIAL ENLIGHTENMENT THOUGHT DRAWN FROM LOCKE ROUSSEAU VOLTAIRE KANT HUME AND THE MAGNA CARTA KNOWN AS THE US CONSTITUTION WAS REALLY INSPIRED INSTEAD BY THE IROQUOIS INDIANS IT CAN'T CAME AS ANY GREAT SHOCK BUT NEVER MIND THE CONSTITUTION BUFFY ST MARIE A CREE AND A STAR OF THE BROKEN CHAIN EXPLAINS IN THE PRODUCTION NOTES THAT WHITE MEN TOOK OTHER IMPORTANT IDEAS FROM THE IROQUOIS AMONG THEM THE PRINCIPLE THAT ONE DIPLOMAT SPEAKS AT A TIME WHICH WAS UNHEARD OF IN EUROPE AT THE TIME ONE YEARNS TO HEAR MORE ON THIS BUT IT IS ALREADY GETTING HARD TO KEEP UP WITH ALL THE LATEST DATA ON THE INDIANS THE FACTS OF WHOSE BLEAK FATE ARE HARDLY SERVED BY FILMS LIKE THESE WE ARE SHOWN IN THE FILM AND TOLD EXPLICITLY IN THE NOTES FOR THE BROKEN CHAIN THAT WOMEN WERE THE TRIBES' DECISION MAKERS INDEED THEY WERE ONE AUTHORITATIVE SOURCE EXPLAINS THE SUPREME COURT THAT HAD THE LAST WORD WOULD THAT WE COULD LEARN WHAT THIS SUPREME COURT HAD TO SAY ABOUT VARIOUS BARBAROUS PRACTICES VISITED ON THE TRIBES' WOMEN SUCH AS CUTTING OFF THE NOSE TIPS OF THOSE CHARGED WITH ADULTERY OF THIS SORT OF THING WE HEAR NOT A WHISPER NOR ABOUT ANY OTHER REMOTELY UNFLATTERING FACTS IN THESE IDYLLIC PORTRAITS OF INDIAN LIFE ONE PRODUCER OF THE FILM NOTES THAT THE INDIANS ONLY WANT TO BE REPRESENTED FACTUALLY IF THE FUTURE PROGRAMS IN WHAT THE TURNER NETWORK DESCRIBES AS ITS COMPANYWIDE NATIVE AMERICAN INITIATIVE ARE ANYTHING LIKE THE FIRST TWO THE INDIANS WILL HAVE A LONG WAIT SEE RELATED LETTER LETTERS TO THE EDITOR AMERICAN HISTORY SAVAGED ONCE AGAIN WSJ DEC 21 1993 9312130060 YY93 MM12 9312210004 931221 MARKETING BY ELEENA DE LISSER SOME SHOPPING MALLS ARE COURTING HOLIDAY CUSTOMERS BY INVITATION ONLY WITH LOCAL AEROSPACEINDUSTRY LAYOFFS THE POTENTIAL CLOSING OF AN AIR FORCE BASE AND A CUSTOMER BASE OF ONLY 78000 HOUSEHOLDS THE OGDEN CITY MALL IN OGDEN CITY UTAH NEEDED A WAY TO ATTRACT NEW CUSTOMERS TO INCREASE CHRISTMAS SALES MALL MANAGEMENT TARGETED TWO RURAL WYOMING COMMUNITIES THREE HOURS AWAY FOR 50 EACH THOSE WHO RSVP'D RECEIVED ROUNDTRIP TRANSPORTATION A NIGHT'S STAY IN A HOTEL DINNER AND BREAKFAST SPECIAL DISCOUNTS AND COUPONS ALSO WERE AMONG THE PERKS TO ENCOURAGE THE USE OF DEPARTMENTSTORE CREDIT CARDS EACH CUSTOMER RECEIVED INSTANTCREDIT APPLICATIONS THIS WAY THE CASH THAT THEY HAD BROUGHT COULD BE SPENT ON OTHER MERCHANTS SAID DEBRA L LUBY THE MALL'S MARKETING DIRECTOR THE MALL OPENED AT 8 AM TO GIVE THE WYOMING CUSTOMERS A TWOHOUR JUMP ON THE SHOPPING PUBLIC ABOUT 313 PEOPLE RESPONDED EACH SPENDING AN AVERAGE OF 750 THE MALL'S SALES DURING THE ONEDAY EVENT SHOT UP 280000 AND MANY MERCHANTS REPORTED DOUBLEDIGIT INCREASES ACCORDING TO MS LUBY AT RIMROCK MALL IN BILLINGS MONT A LARGE PERCENTAGE OF SHOPPERS ARE FROM TOWNS 120 MILES AWAY THE NEXT CLOSEST MALL TO US IS 2 1/2 HOURS AWAY IN BOZEMAN MONT SAYS KENDALL MERRICK THE MALL'S MARKETING DIRECTOR THE SHOPPING CENTERS AREN'T ON EVERY BLOCK UP HERE THE MALL SPONSORED A ONEDAY THE HOLIDAY EXPRESS EVENT THAT FOR 18 A HEAD ARRANGED FOR TRANSPORTATION AND COVERED BREAKFAST DINNER AND A FASHION SHOW TO ENCOURAGE SPENDING THROUGHOUT THE MALL PRIZES WERE GIVEN TO SHOPPERS WHO SPENT AT LEAST 25 IN FIVE OR MORE STORES WHAT DOES A FLORIDA STATE UNIVERSITY SEMINOLE SMELL LIKE ASK PETER KLAMKA AND HE'LL DESCRIBE THE SCENT AS ATHLETIC RUGGED WITH A SPICE OVERTONE MR KLAMKA A 24YEAROLD MICHIGAN ENTREPRENEUR IS THE CREATOR OF THE WILSHIRE FRAGRANCE COLLEGE COLLECTION CHANEL NO 5 IT'S NOT BUT MR KLAMKA SAYS HIS SCENTS HAVE AN ADVANTAGE OVER OTHER NEW ENTRANTS TO THE PERFUME INDUSTRY THEY'VE GOT TO GO OUT AND CREATE AN IDENTITY FOR THEIR FRAGRANCE AND THE CONSUMER HAS TO BUY INTO THAT HE SAYS WE ALREADY HAVE THAT IDENTIFICATION THAT EMOTIONAL TIE THAT PEOPLE HAVE TO CERTAIN COLLEGES HE STARTED THE COMPANY LAST YEAR WHEN HE LEARNED THERE WERE NO LICENSED FRAGRANCES ON THE MARKET MEN'S COLOGNE IS A 2 BILLIONAYEAR BUSINESS COLLEGELICENSED PRODUCTS IS A 14 BILLIONAYEAR INDUSTRY THE UNIVERSITY OF MICHIGAN GRADUATE FIRST APPROACHED HIS ALMA MATER THE UNIVERSITY MR KLAMKA DISCOVERED WANTED TO EXPAND BEYOND LICENSED NOVELTIES LIKE KEY CHAINS AND TSHIRTS AND DEVELOP MORE UPSCALE GIFT ITEMS MR KLAMKA HIRED A FRAGRANCE DESIGNER AND SOON VICTORS WAS BORN THE NAME COMES FROM A UNIVERSITY OF MICHIGAN FIGHT SONG AND THE SCENT IS WHAT MR KLAMKA DESCRIBES AS A CONTEMPORARY COMFORTABLE CITRUSY FRAGRANCE WILSHIRE FRAGRANCE INC MARKETS EIGHT FRAGRANCES KEYED TO UNIVERSITIES KNOWN FOR THEIR FOOTBALL TEAMS A LINE FOR UNIVERSITIES WITH POPULAR BASKETBALL TEAMS WILL BE INTRODUCED IN JANUARY SCENTS FOR THE IVY LEAGUE AND HISTORICALLY BLACK COLLEGES AND UNIVERSITIES ARE IN DEVELOPMENT ADS PLACED IN ALUMNI MAGAZINES PROMOTE THE FRAGRANCES WHICH ARE AVAILABLE BY MAIL OR THROUGH STORES THAT SELL LICENSED MERCHANDISE SUCH AS SPORTING GOODS AND COLLEGE BOOK STORES A HANDFUL OF JC PENNEY DEPARTMENT STORES IN MICHIGAN AND FLORIDA STOCK SOME OF THE COLOGNES OVERALL ABOUT 100000 BOTTLES HAVE BEEN SOLD THE FIRST YEAR THE LADIES IN THE COSMETICS DEPARTMENT THOUGHT VICTORS SMELLED REALLY GOOD SAYS A JC PENNEY MERCHANDISING EXECUTIVE BUT WE SELL IT IN THE LICENSEDSPORTS APPAREL AREA COMING SOON TO A MALL FOOD COURT NEAR YOU CAFE USA IT'S NOT A TRENDY EATERY BUT A TELEVISION PROGRAM THAT WILL BE BROADCAST IN THE COURTS MOST MALL FOOD COURTS ATTRACT 25 TO 50 OF THE CENTER'S CUSTOMERS SAYS STEVE BOWEN PRESIDENT OF FOOD COURT ENTERTAINMENT NETWORK INC THE AVERAGE FOODCOURT VISIT CAN LAST FROM 18 TO 33 MINUTES HE SAYS IT'S A MASSIVE AUDIENCE OF DESIRABLE SHOPPERS WHO ARE SEATED RELAXED AND SOMEWHAT RECEPTIVE TO ADVERTISING SAYS MR BOWEN FORMER PRESIDENT AND CHIEF OPERATING OFFICER OF AD AGENCY J WALTER THOMPSON THE 30MINUTE FORMAT OF ENTERTAINMENT FEATURES WILL BE PUNCTUATED BY LIVE NEWS AND LOCAL WEATHER REPORTS ADVERTISING FOR NATIONALLY AVAILABLE PRODUCTS WILL BE TAGGED WITH THE NAME OF THE MALL RETAILER THAT SELLS THEM IF CAFE USA CAN PENETRATE THE COUNTRY'S 735 LARGEST MALLS THE MONTHLY AUDIENCE WOULD BE THE AGGREGATE OF ROSEANNE' SEINFELD' 60 MINUTES' AND THE SUPER BOWL AND THEY DON'T HAVE A ZAPPER IN THEIR HANDS MR BOWEN BOASTS BUT AD AGENCY EXECUTIVE JUDY COURTNEY BELIEVES CUSTOMERS FACE TOO MANY OTHER DISTRACTIONS TO PAY MUCH ATTENTION TO A TV MONITOR HANGING ABOVE THEIR TABLES THE NOISE LEVEL IS GOING TO BE A HUGE PROBLEM AS WELL AS CUSTOMER ATTENTIVENESS SAYS MS COURTNEY SENIOR VICE PRESIDENT AND MEDIA DIRECTOR FOR FOOTE CONE & BELDING IN SAN FRANCISCO AN ARTHUR ANDERSEN CONSUMER SURVEY FOUND THE AVERAGE SHOPPER PLANS TO SPEND 745 ON HOLIDAY GIFTS THIS SEASON AND MORE THAN 66 OF US CONSUMERS PLAN TO USE MORE CASH THAN CREDIT WHEN ASKED 46 OF THE RESPONDENTS SAID CONVENIENCE WAS THE LEAST IMPORTANT FACTOR WHEN IT COMES TO HOLIDAY SHOPPING 9312210003 931221 MARKETING & MEDIA NBC RETAINS THE RIGHTS TO AFC GAMES IN NFL SHUTTING CBS OUT OF FOOTBALL BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GENERAL ELECTRIC CO'S NBC UNIT RETAINED RIGHTS TO GAMES OF THE NATIONAL FOOTBALL LEAGUE'S AMERICAN FOOTBALL CONFERENCE SHUTTING OUT CBS INC FROM NFL RIGHTS FOR THE FIRST TIME IN 38 YEARS THE NBC VICTORY LEAVES CBS BEREFT OF MAJOR SPORTS FRANCHISES A DRAMATIC TURNAROUND FROM RECENT YEARS WHEN THE THENTHIRD PLACE NETWORK SNAPPED UP EXPENSIVE RIGHTS TO SEEMINGLY EVERYTHING AND PAID HEAVILY ULTIMATELY CBS TOOK 604 MILLION IN PRETAX WRITEDOWNS IN 1990 AND 1991 TO ACCOUNT FOR LOSSES IN ITS NFL AND MAJOR LEAGUE BASEBALL CONTRACTS CBS PUT IN A LATE BID OVER THE WEEKEND OF 250 MILLION ANNUALLY FOR THE AFC PACKAGE AFTER ITS STUNNING LOSS ON FRIDAY OF NATIONAL FOOTBALL CONFERENCE GAMES THAT PACKAGE WENT TO NEWS CORP'S FOX BROADCASTING CO WHICH PAID 156 BILLION OR 395 MILLION ANNUALLY FOR FOUR YEARS ABOUT 100 MILLION MORE PER YEAR THAN CBS WAS WILLING TO PAY FOR THE AFC PACKAGE NBC PAID AN ESTIMATED 217 MILLION ANNUALLY OR 868 MILLION DESPITE PRESSURE FROM TEAM OWNERS WHO WERE LOOKING AT A HIGHER BID FROM CBS BUT THE NFL DECIDED TO STAY WITH NBC BECAUSE IT HAD ALREADY CONCLUDED A GENTLEMEN'S AGREEMENT WITH THAT NETWORK BEFORE CBS PUT IN ITS LASTMINUTE BID THE NEW CONTRACT CALLS FOR PAYMENTS THAT ARE 15 HIGHER THAN THE 752 MILLION NBC PAID FOR THE FOURYEAR PACKAGE THAT IS JUST CONCLUDING AND WELL ABOVE WHAT NBC HAD BEEN EXPECTED TO PAY GIVEN ITS TOTAL ESTIMATED LOSSES OF 110 MILLION THE AFC PACKAGE IN RECENT YEARS HAS BEEN A WEAKER FRANCHISE THAN THE NFC DRAWING FEWER VIEWERS FROM THE GAMES INVOLVING SMALLERMARKET TEAMS BUT WITH THE NFC PACKAGE MOVING TO FOX FROM CBS THE TWO CONFERENCES COULD ACHIEVE PARITY EXECUTIVES AT RIVAL NETWORKS PREDICTED FOX'S NFC COVERAGE WOULD DRAW RATINGS 13 TO 15 LOWER THAN ON CBS BECAUSE FOX HAS A WEAKER LINEUP OF STATIONS PARTICULARLY IN LESSPOPULATED AREAS OF THE US CBS'S NFC COVERAGE DRAWS 131 OF THE NATION'S 942 MILLION TV HOMES ON AVERAGE WHILE NBC'S AFC COVERAGE DRAWS 111 THE NBC PACKAGE INCLUDES THE RIGHTS TO THE 1996 AND 1998 SUPER BOWLS NBC SPORTS PRESIDENT DICK EBERSOL SAID THE DEAL WILL BE BREAK EVEN HE DECLINED TO CONFIRM HOW MUCH NBC HAD AGREED TO PAY BUT HE SAID THE PRICE MORE CLOSELY MATCHES THE VALUE OF THE PACKAGE THAN IN THE PAST BECAUSE IT INCLUDES THE TWO HIGHLY LUCRATIVE SUPER BOWLS ONE EXECUTIVE FAMILIAR WITH THE DEAL SAID NBC ALSO PERSUADED THE NFL TO ADD INVENTORY OF AT LEAST TWO 30SECOND ADS FOR EACH POSTSEASON GAME WHICH WILL HELP NBC MAKE BACK ITS INVESTMENT NBC WILL ALSO GET MORE INGAME PROMOTION TIME THAN IT HAD IN THE PAST AND IT EXPECTS TO REAP AN ADDITIONAL 12 MILLION TO 15 MILLION ANNUALLY BECAUSE THE RATINGS WILL BE HIGHER AGAINST WEAKER FOX COMPETITION FINALLY NBC PERSUADED SOME OF ITS AFFILIATES TO CONTRIBUTE MONEY IN SOME CASES CLOSE TO 10 MILLION A YEAR TO HELP THE NETWORK RAISE ITS BID MR EBERSOL SAID NBC DECIDED TO INCREASE ITS BID FROM WHAT ONE SOURCE SAID WAS INITIALLY AS LITTLE AS 170 MILLION ANNUALLY AFTER IT BECAME CLEAR THAT FOX WAS WILLING TO PAY A PREMIUM TO GET INTO THE FOOTBALL BUSINESS THIS WAS NOT GOING TO BE ABOUT WHERE WE HAD BEEN IN THE PAST HE SAID IT WAS CLEAR THERE WAS A NEW WORLD AND THERE WAS SOMEBODY OUT THERE WILLING TO BUY MARKET SHARE THAT'S WHAT I BELIEVE FOX OWNER RUPERT MURDOCH HAS DONE VERY EFFECTIVELY SO WE PUT TOGETHER A DEAL THAT REFLECTS A NEW REALITY ONCE THE LILLEHAMMER NORWAY WINTER OLYMPIC GAMES ARE CONCLUDED IN FEBRUARY CBS SPORTS WILL BE LEFT WITH JUST NATIONAL COLLEGIATE ATHLETIC ASSOCIATION BASKETBALL US OPEN TENNIS AND THE MASTERS GOLF TOURNAMENT ATOP ITS SPORTS LIST BASEBALL RIGHTS HAVE ALREADY BEEN AWARDED TO NBC AND CAPITAL CITIES/ABC INC BEGINNING NEXT YEAR THE SITUATION IS ULTIMATELY EXPECTED TO LEAD TO PERHAPS MORE THAN 100 LAYOFFS AT CBS SPORTS CBS SPORTS PRESIDENT NEAL PILSON SAID THE LOSS OF THE NFL GAMES MEANS THAT CBS WILL BE TAKING A LOWER PROFILE FOR A PERIOD OF TIME AND WILL HAVE TO DOWNSIZE THE DIVISION ALTHOUGH HE WOULDN'T BE SPECIFIC OUR PLAN FOR THE FUTURE IS TO DEVELOP A VIABLE THIRD AND FOURTHQUARTER WEEKEND SCHEDULE OF EVENTS THAT HISTORICALLY HAVE ATTRACTED AUDIENCES COMPETING AGAINST NFL FOOTBALL MR PILSON SAID THESE EVENTS INCLUDE COLLEGE BASKETBALL GOLF TENNIS AND AUTO RACING WHICH ARE AMONG THE EVENTS TO WHICH CBS STILL HAS RIGHTS HE SAID CBS WILL BID ON THE 1998 WINTER OLYMPICS AND WILL LOOK FOR OTHER EVENTS THE SPORTS TELEVISION INDUSTRY IS CYCLICAL HE NOTED OBVIOUSLY WE WOULD HAVE PREFERRED TO STAY WITH NFL FOOTBALL BUT WE LOOK AHEAD TO REBUILDING OUR BROADCAST SCHEDULE THE NFL'S TV COMMITTEE MADE ITS FINAL DECISION YESTERDAY AFTER A HALFHOUR CONFERENCECALL DESPITE THE HIGHER CBS BID THE VOTE FOR NBC WAS UNANIMOUS BECAUSE THE COMMITTEE FELT IT HAD ALREADY MADE A COMMITMENT TO NBC WE THOUGHT TO DEPART FROM THAT COMMITMENT UNDER THE CIRCUMSTANCES WOULDN'T BE RIGHT SAID JERRY JONES OWNER OF THE DALLAS COWBOYS COMMISSIONER PAUL TAGLIABUE WAS SAID TO BE SOMBER AFTER SENDING A LETTER TO CBS ENDING THE 38YEAR RELATIONSHIP BETWEEN THE LEAGUE AND THE NETWORK THE FINAL PIECE OF THE PACKAGE MEANS THE NFL WILL GET NEARLY 44 BILLION IN TV REVENUE FROM 1994 TO 1997 OR 392 MILLION PER TEAM PER YEAR UNDER THE OLD PACKAGE THE TEAMS GOT 325 MILLION A YEAR MOST OF THE NEW MONEY WILL GO DIRECTLY TO THE PLAYERS WHO UNDER A NEW LABOR PACT GET 64 PERCENT OF THE NFL'S REVENUES JOHN HELYAR IN ATLANTA CONTRIBUTED TO THIS ARTICLE 9312210002 931221 COMMODITIES OIL PRICES FINISH MOSTLY LOWER DESPITE SIGNALS IRAQI EMBARGO WON'T BE LIFTED ANY TIME SOON BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON CRUDE OIL AND PETROLEUM PRODUCT FUTURES PRICES FINISHED MOSTLY LOWER DESPITE WHAT TRADERS SAID WERE SIGNALS THAT THE UNITED NATIONS WON'T LIFT ITS OIL EMBARGO AGAINST IRAQ ANY TIME SOON TRADERS WERE RESPONDING TO COMMENTS MADE BY THE US AMBASSADOR TO THE UN MADELEINE ALBRIGHT THAT THE US IS SEEKING TO PUT TOUGHER RESTRICTIONS ON IRAQ FOR THE EMBARGO TO BE LIFTED FOR ONE SHE SAID IRAQ MUST RECOGNIZE KUWAIT AS AN INDEPENDENT NATION AND MUST STOP PERSECUTING KURDS AND SHIITE MUSLIMS THE AMBASSADOR ALSO SAID THE US WANTS TO SEE COMPLIANCE WITH UN WEAPONS MONITORING RESOLUTIONS FOR SIX MONTHS TO A YEAR BEFORE CONSIDERING LIFTING THE EMBARGO MS ALBRIGHT WAS QUOTED IN SUNDAY'S NEW YORK TIMES THE THREAT OF IRAQ'S REENTRY INTO AN ALREADY GLUTTED OIL MARKET HAS KEPT A LID ON PRICES FOR MUCH OF THE YEAR BUT MARKET PARTICIPANTS REMAINED BEARISH YESTERDAY AND INTERPRETED THE IRAQI NEWS TO MEAN THAT PRICES HAVE NO REASON TO FALL FURTHER IN THE SHORT RUN BUT THEY ADDED THERE ISN'T ANY REASON FOR THEM TO RISE EITHER ON THE NEW YORK MECANTILE EXCHANGE CRUDE OIL FOR DELIVERY IN JANUARY ENDED AT 1418 A BARREL UP 27 CENTS THE CONTRACT TRADED AS LOW AS 1375 TRADERS SAID TECHNICAL FACTORS CONTRIBUTED TO THE RISE ESPECIALLY BECAUSE THE JANUARY CONTRACT EXPIRED YESTERDAY THE FEBRUARY CONTRACT WHICH BECOMES THE SPOT CONTRACT SLID FOUR CENTS A BARREL TO SETTLE AT 1438 PETROLEUM PRODUCT PRICES ALSO SLID HEATING OIL FOR JANUARY DELIVERY FELL 032 CENT TO 4375 CENTS A GALLON JANUARY GASOLINE ENDED AT 3955 CENTS A GALLON DOWN 064 CENT NATURAL GAS PRICES HOWEVER ROSE SHARPLY AMID FORECASTS THAT MUCH OF THE COUNTRY IS EXPECTED TO HAVE NORMAL TO BELOWNORMAL TEMPERATURES THROUGH THE WEEKEND BOOSTING DEMAND ON THE NEW YORK MERC JANUARY GAS SETTLED AT 2172 PER MILLION BRITISH THERMAL UNITS UP 67 CENTS IN THE PAST THREE SESSIONS THE CONTRACT HAS JUMPED NEARLY 16 CENTS PER MILLION BTUS PRECIOUS METALS STRONG DEMAND FOR SILVER CONTINUED TO LEAD PRECIOUS METALS FUTURES PRICES HIGHER AT NEW YORK'S COMMODITY EXCHANGE SILVER FOR MARCH DELIVERY WAS UP NINE CENTS TO 5142 AN OUNCE WHILE THE ACTIVELY TRADED FEBRUARY GOLD FUTURES CONTRACT ROSE 190 TO 39080 AN OUNCE MIDDLE EASTERN INVESTOR SYNDICATES CONTINUED TO BE BIG BUYERS OF SILVER BULLION SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH GENERALLY THE STRENGTH OF SILVER A METAL USED AS A RAW MATERIAL BY SUCH INDUSTRIES AS FILM MANUFACTURING DERIVES FROM PERCEPTIONS THAT PROSPECTS ARE IMPROVING FOR THE US AND EUROPEAN ECONOMIES THE PRECIOUS METALS MARKET ALSO GAINED STRENGTH YESTERDAY FROM BUYING BY JAPANESE INVESTORS OF BOTH GOLD AND PLATINUM MR O'NEILL SAID GRAINS & SOYBEANS CORN PRICES ROSE IN QUIET TRADING AMID SPECULATION THAT ICE MIGHT CLOSE THE ILLINOIS RIVER WITHIN A FEW WEEKS MUCH OF THAT RIVER USUALLY REMAINS OPEN DURING THE WINTER TO SERVE AS AN IMPORTANT CONDUIT OF GRAIN FROM THE INTERIOR OF ILLINOIS TO ST LOUIS WHERE IT IS THEN TRANSPORTED ALONG THE LOWER MISSISSIPPI RIVER TRADERS EXPECT A COLD WAVE TO END WHAT HAS SO FAR BEEN A MILD WINTER ACROSS THE MIDWEST CORN PRICES WERE ALSO SUPPORTED BY A GOVERNMENT REPORT SHOWING THAT FEEDLOTS ARE HOLDING A LARGE AMOUNT OF CATTLE WHOSE DIET IS LARGELY CORN IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MARCH DELIVERY ROSE 225 CENTS A BUSHEL TO SETTLE AT A LIFEOFCONTRACT HIGH OF 29825 A BUSHEL MOST SOYBEAN CONTRACTS SETTLED LOWER IN PRICE WHILE MOST WHEAT CONTRACTS ROSE 9312210001 931221 WHAT'S NEWS BUSINESS AND FINANCE QVC RAISED ITS BID FOR PARAMOUNT TOPPING RIVAL VIACOM IN WHAT WAS BILLED AS A FINAL ROUND OF BIDDING IN THE THREEMONTH TAKEOVER BATTLE QVC SAID IT INCREASED ITS BID 2 A SHARE TO 92 IN CASH FOR 51 OF PARAMOUNT SHARES AND WAS TOLD BY PARAMOUNT IT WAS THE HIGH BIDDER BUT VIACOM COULD RETURN WITH A HIGHER OFFER HANSON PLC IS CONSIDERING AN OFFER FOR BORDEN ACCORDING TO PEOPLE CLOSE TO THEIR TALKS BORDEN'S INVESTMENT BANKERS BEGAN TALKING TO HANSON'S US UNIT OVER THREE WEEKS AGO BELL ATLANTIC WILL FIGHT ANY EFFORTS BY THE GOVERNMENT TO FORCE THE FIRM TO SELL OWNERSHIP STAKES IN CABLE CHANNELS TO PUSH THROUGH ITS ACQUISITION OF CABLE GIANT TELECOMMUNICATIONS INC THE BABY BELL'S CHAIRMAN SAID THE WHITE HOUSE IS EXPECTED TO GIVE GENERAL PRAISE BUT NO ENDORSEMENT TODAY TO THREE BILLS TO INCREASE TELEPHONE AND CABLE COMPETITION MANY MORTGAGE LENDERS ARE TRYING TO DO MORE BUSINESS WITH MINORITIES BUT THE GAP BETWEEN BLACK AND WHITE LOANDENIAL RATES HAS BEEN HARD TO NARROW A WALL STREET JOURNAL STUDY SHOWS THE BLACKWHITE REJECTION GAP GREW IN 1992 TO A 206 RATIO FROM 191 AMERITECH AGREED TO INVEST 472 MILLION IN A NEW DATASERVICES VENTURE WITH GENERAL ELECTRIC THAT WILL JOIN THE BABY BELL'S PHONENETWORK EXPERTISE WITH GE'S INFORMATION SERVICES UNIT MOBIL WON THE RIGHT TO EXPLORE FOR OIL IN THE BLUE DRAGON FIELD OFF THE VIETNAM COAST THE FIRST US FIRM TO DRILL IN VIETNAM SINCE THE END OF THE WAR ALYESKA PIPELINE AGREED TO A MULTIMILLIONDOLLAR SETTLEMENT OF AN INVASIONOFPRIVACY SUIT BY A WHISTLEBLOWER STEMMING FROM A SPYING CAMPAIGN ALYESKA MOUNTED AGAINST HIM GE'S NBC RETAINED RIGHTS TO GAMES OF THE NFL'S AMERICAN FOOTBALL CONFERENCE SHUTTING OUT CBS FROM NFL RIGHTS FOR THE FIRST TIME IN 38 YEARS IBM IS EXPECTED TO NAME TODAY A FORMER NABISCO MARKETING EXECUTIVE WITH ALMOST NO HIGHTECH EXPERIENCE TO A TOP POST IN THE CRITICAL PERSONALCOMPUTER AND POWERPC DIVISIONS THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT RATCHETED DOWNWARD ITS ECONOMIC FORECASTS FOR MOST DEVELOPED NATIONS IN 1994 WITH THE EXCEPTION OF THE US NIKE'S PROFIT PLUNGED 31 IN ITS FISCAL SECOND QUARTER AS SALES OF ITS CORE BASKETBALL SHOES DECLINED 25 MERRYGOROUND SAID SOME OF ITS VENDORS MAY NOT SHIP KEY SPRING MERCHANDISE TO ITS CLOTHING STORES US AND MEXICAN COMPANIES HAVE BEEN ANNOUNCING A WAVE OF JOINT VENTURES IN MEXICO IN THE WAKE OF NAFTA TOKYO STOCKS FELL 36 AS INVESTORS DUMPED SHARES ON CONCERNS THAT POLITICAL TURMOIL WILL DELAY GOVERNMENT MEASURES TO LIFT JAPAN'S ECONOMY THE NIKKEI LOST 64767 POINTS THE LARGEST POINT DROP THIS YEAR TO 1740424 MEANWHILE LONDON STOCK PRICES ROSE TO THE FOURTH CONSECUTIVE RECORD FINISH JAPAN'S MANUFACTURERS ARE GETTING SOME WELCOME RELIEF FROM THE YEN'S RECENT RETREAT AGAINST THE DOLLAR THE SEC PLANS TO VOTE TOMORROW ON A PROPOSAL TO REDUCE THE SIZE OF ORDERS ELIGIBLE FOR TRADING ON THE NASDAQ SMALL ORDER EXECUTION SYSTEM THE PLAN SPARKED A FLOOD OF NEGATIVE LETTERS TO THE SEC BY TRADERS AND INVESTORS SHANGHAI STOCKS WERE POUNDED BY A WAVE OF SELLING OVER WORRIES ABOUT A FLOOD OF NEW ISSUES IN COMING MONTHS AND RUMORS OF NEW TAX POLICIES THE SHANGHAI A SHARE INDEX DROPPED 13 BONDS LEHMAN BROTHERS TREASURY INDEX 550933 OFF 1935 COMMODITIES OIL 1418 A BARREL UP 27 CENTS DOW JONES FUTURES INDEX 14107 OFF 078 SPOT INDEX 12675 UP 084 DOLLAR 11065 YEN UP 047 17130 MARKS UP 00040 9312210111 931105 NO STATEHOOD NO LASTING PEACE BY SULIMAN S OLAYAN FOR MANY YEARS I HAVE BEEN TELLING ANYONE WHO WOULD LISTEN THE FOLLOWING FIRST THE DISPUTE BETWEEN ISRAEL AND THE PALESTINIANS IS THE HEART OF THE ARABISRAELI CONFLICT AND THE GREATEST SOURCE OF INSTABILITY IN THE MIDDLE EAST SECOND A PEACEFUL SETTLEMENT WOULD BRING BOTH SECURITY AND PROSPERITY TO THE REGION THIRD THE ONLY WAY TO ACHIEVE LASTING PEACE IS THROUGH THE REALIZATION OF THE PALESTINIANS' LEGITIMATE CLAIM TO STATEHOOD EVEN BEFORE THE COLLAPSE OF THE SOVIET UNION AND THE GULF CRISIS I PREDICTED THAT A STATE OF PALESTINE WOULD PRESENT ABOUT AS MUCH DANGER TO ISRAEL AS PANAMA DOES TO THE US I PREDICTED THAT MOST ARAB STATES WOULD RECOGNIZE ISRAEL WITHIN 12 TO 18 MONTHS FOLLOWING THE CREATION OF SUCH A STATE AND I SAID THAT WITH RECOGNITION ISRAEL WOULD BE ON THE DOORSTEP OF UNPRECEDENTED GROWTH AND DEVELOPMENT WITH ITS SECURITY ASSURED GIVEN THAT I SEE BOTH PROS AND CONS IN THE DECLARATION OF PRINCIPLES RECENTLY SIGNED BY ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION IN WASHINGTON FIRST THE PROS A HUGE PSYCHOLOGICAL BARRIER WAS SHATTERED THAT IS ALREADY A CLICHE BUT IT IS TRUE NONETHELESS WHEN YITZHAK RABIN AND YASIR ARAFAT SHOOK HANDS INSTANTLY AND IRREVERSIBLY THE LONG UNTHINKABLE BECAME REAL NOW BOTH SIDES HAVE TO DEAL THE DECLARATION OF PRINCIPLES ESTABLISHED SHARED UNDERSTANDINGS OF TREMENDOUS IMPORTANCE FOR EXAMPLE BOTH SIDES AGREED THAT THE WEST BANK AND GAZA STRIP SHOULD BE VIEWED AS A SINGLE TERRITORIAL UNIT AND THAT THE TRANSITIONAL PERIOD OF INTERIM SELFGOVERNMENT SHALL LEAD TO A PERMANENT SETTLEMENT BASED ON SECURITY COUNCIL RESOLUTIONS 242 AND 338 IMPORTANTLY TOO BOTH SIDES PLEDGED TO PUT AN END TO DECADES OF CONFRONTATION AND CONFLICT AND RECOGNIZE THEIR MUTUAL LEGITIMATE AND POLITICAL RIGHTS WHILE THE BONES OF THE ACCORDS ARE RATHER BARE AN AMBITIOUS TIMETABLE HAS BEEN ESTABLISHED FOR PUTTING SOME MEAT ON THE SKELETON IMPORTANTLY THE TALKS IN TABA ON SECURITY MATTERS AND THE ESTABLISHMENT OF CIVIL ADMINISTRATION IN THE TERRITORIES GOT OFF TO A CALM BUSINESSLIKE START THE OCCASIONAL SNAG AS OCCURRED THIS WEEK WHEN NEGOTIATIONS WERE TEMPORARILY SUSPENDED IS TO BE EXPECTED MEANWHILE UNITS OF THE PALESTINE LIBERATION ARMY ALREADY ARE BEING TRAINED IN EGYPT AND JORDAN AS POLICEMEN FOR GAZA AND JERICHO PRACTICAL STEPS TOWARD A VERY DIFFICULT PEACE ARE UNDER WAY THOUGH HALTINGLY AT TIMES ON MANY DIFFERENT FRONTS WE MUST REMAIN OPTIMISTIC THE DEGREE TO WHICH THE INTERNATIONAL COMMUNITY HAS RALLIED IS ALSO POSITIVE TO ITS CREDIT THE CLINTON ADMINISTRATION SWIFTLY CONVENED A DONORS' CONFERENCE SOON AFTER THE SIGNING OF THE ACCORDS THE RESULTS WERE IMPRESSIVE IT IS ABSOLUTELY CRITICAL AS WARREN CHRISTOPHER HAS SAID TO DEMONSTRATE THE TANGIBLE BENEFITS OF PEACE AND TO DO SO QUICKLY THE DONORS' CONFERENCE WAS A FIRST IMPORTANT STEP THE ACCORDS MAY NUDGE THE CONFRONTATIONAL STATES TOWARD THEIR OWN PEACE AGREEMENTS THE ANNOUNCEMENT ON OCT 1 OF A TRILATERAL WORKING GROUP OF JORDAN ISRAEL AND THE US WAS A POSITIVE DEVELOPMENT ON THIS ROAD IT REMAINS TO BE SEEN IF THERE IS ENOUGH ACCOMMODATION ON ALL SIDES TO FORGE A SETTLEMENT BETWEEN ISRAEL ON THE ONE HAND AND SYRIA AND LEBANON ON THE OTHER FINALLY THE ACCORDS HAVE SPARKED HUGE INTEREST IN THE REGION'S POTENTIAL THERE IS TALK THAT GAZA ONE OF THE POOREST PLACES ON EARTH COULD EMULATE SINGAPORE'S EFFICIENCY AND PROSPERITY THERE IS TALK OF A FREETRADE ZONE ALONG THE JORDAN RIVER A BOOM IN ISRAELI EXPORTS OF HIGHTECH GOODS AND EXPERTISE TO THE ARAB WORLD NEW AND AGGRESSIVE PALESTINIAN ENTREPRENEURSHIP A BONANZA FOR TOURISM AND A FLOOD OF INVESTMENT CAPITAL INTO THE REGION WE REALISTS KNOW A LOT OF THIS MIGHT BE WISHFUL THINKING RIGHT NOW AFTER ALL THERE IS NOTHING MORE COWARDLY THAN TOURISTS AND CAPITAL BUT WE ALSO RECOGNIZE THAT THE CLEAR BYPRODUCT OF A SUSTAINABLE PEACE WILL BE A FAVORABLE INVESTMENT CLIMATE IN AN AREA OF ENORMOUS POTENTIAL THAT IN TURN COULD BRING PROSPERITY TO A REGIONAL ECONOMY LONG SHACKLED AND DISTORTED BY THIS CONFLICT I AM OPTIMISTIC THAT EVEN BIGGER THINGS LIE AHEAD INCLUDING GREAT MEGAPROJECTS I WOULD NOT BE SURPRISED IF SOME ARE ANNOUNCED SOON PROVIDED THE PEACE PROCESS REMAINS ON TRACK UNFORTUNATELY THE ACCORDS ALSO HAVE PITFALLS IN EXCHANGE FOR RECOGNITION WHAT HAS THE PLO SECURED FOR THE PALESTINIANS FOR THE MOMENT NOT MUCH NO PROMISE OF STATEHOOD NO ASSURANCE THAT HUNDREDS OF THOUSANDS OF REFUGEES WILL HAVE THE OPTION TO RETURN TO PALESTINE NO DISCUSSION OF REPARATIONS OR COMPENSATION NO PROMISE THAT ISRAEL'S SETTLEMENTS WILL BE DISMANTLED AND NO NEGOTIATIONS ON THE STATUS OF JERUSALEM MATERIALLY ALL THAT ISRAEL IS GIVING UP IS A PAINFUL HEADACHEENFORCING ITS OCCUPATION OF THE TERRITORIES MANY ARE CALLING FOR SOME DRAMATIC GESTURE OF GOOD FAITH FROM ARAB GOVERNMENTS IN RETURN FOR ISRAEL'S RECENT GOOD DEED WELL THE VAST MAJORITY OF ARAB COUNTRIES HAVE SHOWN THEIR GOOD FAITH SOME ARAB LEADERS HAVE RECEIVED ISRAELI LEADERS IN THEIR COUNTRIES AND INDEED OPENED THEIR BORDERS TO ISRAELI CITIZENS MOST ARAB COUNTRIES HAVE STAUNCHLY SUPPORTED THE PEACE PROCESS ALL ALONG MOST ARAB STATES ARE SERIOUS PARTIES TO THE MULTINATIONAL ROUND OF NEGOTIATIONS ON REGIONAL ISSUES LAST BUT NOT LEAST AT THE UN GENERAL ASSEMBLY ON OCT 29 ARAB STATES ABANDONED THEIR ANNUAL OPPOSITION TO ISRAEL'S BEING SEATED IT WAS A MAJOR GESTURE OF PEACE DEEPLY WELCOMED BY ISRAELI AMBASSADOR GAD YAACOBI YET NO ONE SHOULD EXPECT A MAD DASH BY THE ARABS TOWARD COMPREHENSIVE PEACE AT THIS JUNCTURE WITH CORE ISSUES OUTSTANDING ARAB GOVERNMENTS WILL NOT MOVE SPEEDILY ON MATTERS LIKE DISSOLVING THE ARAB BOYCOTT OR TOTAL NORMALIZATION OF RELATIONS PARTICULARLY COMMERCIAL RELATIONS WITH THE JEWISH STATE THERE IS BUT ONE SPEEDOMETER FOR ISRAEL AND THE ARABS THEY MOVE AT THE SAME PACE IF ONE LAGS OR ACCELERATES SO WILL THE OTHER THE SIMPLE FACT REMAINS THAT WITHOUT STATEHOOD FOR THE PALESTINIANS THIS CONFLICT WILL NOT GO AWAY IT IS ESTIMATED THAT PERHAPS TWO MILLION PALESTINIANS LIVE IN THE OCCUPIED TERRITORIES AS MUCH AS 75 OF THIS POPULATION IS UNDER 30 YEARS OLD A MAJORITY OF RESIDENTS IN THE TERRITORIES WERE BORN AFTER THE 1967 WAR SINCE BIRTH THEY HAVE LIVED UNDER OCCUPATION OFTEN BRUTALLY SO NOW THESE PALESTINIANS ARE BEING ASKED TO TRANSFORM THEIR MIND SET VIRTUALLY OVERNIGHT FROM RESISTANCE TO RESPONSIBLE PROFESSIONAL EFFICIENT AND DEMOCRATIC CITIZENSHIP BUT CITIZENSHIP IN WHAT QUASIAUTONOMOUS ZONES IN SHORT THE OBSTACLES TO COMPREHENSIVE PEACE STILL LOOM LARGE AS SHIMON PERES HAS SAID AND I COULD NOT SAY IT BETTER REAL PEACE WILL COME WHEN THE DESERT IS TAKEN OUT OF THE LAND THE SALT OUT OF THE WATER AND VIOLENCE OUT OF THE PEOPLE NO SMALL TASK BY ITS OWN SHORTSIGHTED ACTIONS ISRAEL OVER THE YEARS HAS GREATLY MULTIPLIED THE COMMUNITY OF ENMITY THAT SURROUNDS IT YET I AM CONFIDENT THE POWER OF REAL PEACE CAN OVERCOME EVEN THIS A KEY QUESTION IS WHETHER THE WAITING PERIOD OF UP TO TWO YEARS BEFORE PERMANENT STATUS NEGOTIATIONS COMMENCE WILL PROVE TOO LONG IF AND WHEN THESE NEGOTIATIONS BEGIN HOW LONG WILL THEY DRAG ON UNDER THE ACCORDS ONLY THESE TALKS WILL ADDRESS THE CONFLICT'S CRUX JERUSALEM REFUGEES SETTLEMENTS SECURITY ARRANGEMENTS BORDERS RELATIONS WITH OTHER NEIGHBORS AND OTHER ISSUES OF COMMON INTEREST LIKE STATEHOOD DARE WE ASK CLEARLY A LARGE MAJORITY OF ISRAELIS AND PALESTINIANS AS WELL AS JEWS AND ARABS THE WORLD OVER WANT THIS PEACE TO WORK PARTIES ON ALL SIDES HAVE A STRONG SELFINTEREST IN MAKING SURE IT DOES WORK BUT THAT ALONE DOES NOT MEAN IT WILL LET EACH SIDE CHALLENGE THE OTHER TO PICK UP THE PACE LET THE ISRAELIS THE PALESTINIANS AND THE ARAB STATES BE IN A RACE TO GET THE HARD WORK OF PEACE DONE LET EVERYONE PUT THEIR BEST PROFESSIONALS FORWARD TO ACCOMPLISH THIS TO PUT THIS CONFLICT BEHIND US ONCE AND FOR ALL IF THE ACCORDS LEAD TO THE LIBERATION OF A GENERATION OF BOTH PALESTINIANS AND ISRAELIS FOR PRODUCTIVE RATHER THAN DESTRUCTIVE ENTERPRISE THEN PEACE IN THE MIDDLE EAST MAY STAND A CHANCE THAT CAN ONLY HAPPEN IF EACH STANDS EQUAL AND INDEPENDENT FREE OF THE DEBILITATING RELATIONSHIP BETWEEN OCCUPIER AND OCCUPIED SHORT OF THAT THERE WILL BE NO COMPREHENSIVE PEACE IN FULFILLMENT OF THAT THE MIDDLE EAST COULD VERY WELL BE ON THE THRESHOLD OF A NEW GOLDEN AGE MR OLAYAN IS THE CHAIRMAN OF THE OLAYAN GROUP A MULTINATIONAL COMMERCIAL INDUSTRIAL AND FINANCIAL ENTERPRISE BASED IN RIYADH SAUDI ARABIA SEE RELATED LETTER LETTERS TO THE EDITOR THE ARABS' WAR ON THEMSELVES WSJ NOV 30 1993 SEE RELATED LETTER LETTERS TO THE EDITOR BLAMING ISRAEL EASIER THAN FACING REALITY WSJ DEC 21 1993 9311050136 9311300098 YY93 MM11 YY93 MM12 9312210103 931116 FASB TO PROPOSE RULE MAKING IT HARDER FOR LBOS TO SELL THEIR STOCK TO PUBLIC BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE FINANCIAL ACCOUNTING STANDARDS BOARD LATE THIS MONTH WILL PROPOSE A RULE THAT WILL MAKE IT HARDER FOR SOME COMPANIES TO CLEAN UP THEIR BALANCE SHEETS AND GO PUBLIC THE RULE COULD BE PARTICULARLY TROUBLESOME FOR COMPANIES THAT HAVE GONE PRIVATE THROUGH LEVERAGED BUYOUTS AND NOW DECIDE THEY WANT TO SELL STOCK TO THE PUBLIC AGAIN UNDER CURRENT ACCOUNTING RULES COMPANIES CAN DEDUCT IN A SINGLE YEAR THE GOODWILL THEY OBTAINED THROUGH ACQUISITIONS PROVIDED THEY CAN PROVE THAT FUTURE EARNINGS WON'T COVER THE ANNUAL DEDUCTION FOR GOODWILL WITHOUT THIS PROVISION THEY WOULD HAVE TO DEDUCT A PORTION OF THE GOODWILL EACH YEAR FOR AS MANY AS 40 YEARS THIS WOULD CREATE A LONGTERM DRAG ON EARNINGS THAT WOULD DISCOURAGE INVESTORS GOODWILL IS THE PREMIUM OVER BOOK VALUE THAT A BUYER PAYS FOR A COMPANY'S ASSETS THE NEW FASB PROPOSAL WOULD PREVENT ALL COMPANIES FROM INCLUDING INTEREST COSTS IN FIGURING WHETHER PROFITS CAN COVER THE GOODWILL THIS WOULD MAKE IT MUCH TOUGHER IF NOT IMPOSSIBLE FOR COMPANIES TO WRITE OFF THE GOODWILL IN A SINGLE YEAR IT PARTICULARLY WOULD AFFECT LEVERAGED BUYOUTS BECAUSE MOST BUYOUTS ARE FINANCED BY LARGE AMOUNTS OF DEBT WHICH USUALLY LEAD TO BIG PROVISIONS FOR GOODWILL ROBERT WILLENS AN ACCOUNTANT AND FINANCIAL ANALYST WITH AMERICAN EXPRESS CO'S LEHMAN BROTHERS INC UNIT SAID THE RULE WOULD MAKE IT DIFFICULT FOR MANY LBOS TO GO PUBLIC IN THE FUTURE BECAUSE OF THE BIG OVERHANG OF GOODWILL ON THEIR BALANCE SHEETS STOPPING THE BIG ONETIME WRITEDOWNS OF GOODWILL WILL MAKE THEIR PUBLIC OFFERINGS A LOT MORE DIFFICULT AND EXPENSIVE MR WILLENS SAID SO FAR THIS YEAR ONLY TWO COMPANIES HAVE TAKEN ADVANTAGE OF THE ONEYEAR GOODWILL WRITEOFF PATHMARK CORP FORMERLY KNOWN AS SUPERMARKETS GENERAL HOLDINGS CORP TOOK A 600 MILLION WRITEDOWN AND FORT HOWARD CORP TOOK ONE FOR NEARLY 2 BILLION BUT WITH THESE EXAMPLES IN MIND MANY OTHER LBO COMPANIES ARE CONSIDERING THE MOVE THIS DISMAYS SOME ACCOUNTANTS AND FEDERAL REGULATORS WHO FEEL THAT THE ACCOUNTING RULES PERMITTING THE MOVE ARE TOO LAX PAUL ROHAN AN FASB PROJECT MANAGER SAID THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS IS PROPOSING THE CHANGE IN PART BECAUSE IT FEELS MEASURING PROFITS AGAINST GOODWILL DEDUCTIONS IS SUFFICIENT WITHOUT INCLUDING INTEREST PAYMENTS INCLUDING INTEREST IN THE EQUATION MIGHT REQUIRE LOOKING AT ASSETS EVERY YEAR WHICH THE BOARD FELT WASN'T NEEDED MR ROHAN ADDED PUBLIC HEARINGS ON THE PROPOSAL ARE EXPECTED NEXT MAY IF THE PROPOSAL IS APPROVED IT PROBABLY WOULDN'T TAKE EFFECT UNTIL 1995 FINANCIAL STATEMENTS BUT IT'S UNCLEAR WHETHER COMPANIES WILL BE ABLE TO EXPLOIT THIS TIME LAG ONCE THE FASB ISSUES ITS PROPOSAL LATER THIS MONTH FEDERAL REGULATORS ARE EXPECTED TO TAKE A TOUGHER POSITION ON ALLOWING ONETIME WRITEDOWNS FOR GOODWILL ACCOUNTANTS SAY ANTHONY CUTI PRESIDENT AND CHIEF FINANCIAL OFFICER OF PATHMARK A WOODBRIDGE NJ SUPERMARKET CONCERN THAT WAS TAKEN PRIVATE IN A LEVERAGED BUYOUT SIX YEARS AGO CONCEDED THAT THE FASB PROPOSAL WOULD HAVE HINDERED HIS COMPANY'S ONETIME WRITEDOWN OF 600 MILLION IN GOODWILL EARLIER THIS YEAR MY GUESS IS THAT WE COULDN'T HAVE DONE THE WRITEDOWN WITHOUT INCLUDING THE INTEREST EXPENSE HE SAID MR CUTI A FORMER ACCOUNTANT WITH ARTHUR ANDERSEN SAID HE CAME UP WITH THE IDEA FOR THE ONETIME WRITEDOWN WITH THE HELP OF PATHMARK AUDITORS DELOITTE & TOUCHE PRIOR TO THE PUBLIC STOCK OFFERING LAST JULY PATHMARK ENDED UP DELAYING THE 15ASHARE OFFERING BECAUSE IT HAD A STRIKE IN THE SECONDQUARTER THAT DEPRESSED PROFIT BY 11 MILLION AFTER PATHMARK'S ONETIME GOODWILL WRITEDOWN EARLIER THIS YEAR MR CUTI SAID HE RECEIVED CALLS FROM MANY OTHER LBO COMPANIES INTERESTED IN TAKING THE SAME ACTION THESE INCLUDED FORT HOWARD A GREEN BAY WIS TISSUEPRODUCTS MAKER THAT WAS TAKEN PRIVATE IN A 37 BILLION LEVERAGED BUYOUT BY MORGAN STANLEY GROUP INC IN 1988 WHEN FORT HOWARD TOOK ITS 2 BILLION WRITEDOWN IT SAID IT HAD NO PLANS TO GO PUBLIC STILL MR CUTI SAID THAT OFFICIALS OF THE SECURITIES AND EXCHANGE COMMISSION TOLD HIM THEY WERE CONCERNED ABOUT THE LARGE VOLUME OF REQUESTS THE AGENCY WAS RECEIVING FROM COMPANIES SEEKING THE ONETIME GOODWILL WRITEDOWNS ROBERT BAYLESS CHIEF ACCOUNTANT OF THE SEC CORPORATION FINANCE DIVISION RECENTLY TOLD A MEETING OF FINANCIAL EXECUTIVES THAT THE SEC DIDN'T REALIZE THERE ARE SO MANY WAYS TO DETERMINE IF GOODWILL SHOULD BE WRITTEN DOWN MR BAYLESS SAID THE RECENT GOODWILL WRITEDOWNS ARE SURPRISING OTHER COMPANIES AND INVESTORS UNFAMILIAR WITH THIS GOODWILL GAME OFFICIALS OF FORT HOWARD MERRILL LYNCH AND MORGAN STANLEY DECLINED TO COMMENT ABOUT WHETHER THE FASB PROPOSAL WOULD HAVE HINDERED THEIR GOODWILL WRITEDOWNS OR MIGHT HINDER OTHER WRITEDOWNS IN THE FUTURE SEE RELATED LETTER LETTERS TO THE EDITOR FASB A DECADE BEHIND INVESTMENT COMMUNITY WSJ DEC 21 1993 9311160089 YY93 MM12 9312210092 931112 PHILANTHROPY MORE DONORS TO THE UNITED WAY ATTACH AN ASSORTMENT OF STRINGS TO THEIR GIFTS BY PAMELA SEBASTIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK UNITED WAY CAMPAIGNS ARE GETTING LESS UNITED EVERY SEASON THESE DAYS I GAVE AT THE OFFICE CAN MEAN SUPPORT FOR EVERYTHING FROM THE NATIONAL RIFLE ASSOCIATION'S FOUNDATION WHICH PREACHES GUN SAFETY TO ACHOICE A MILWAUKEE GROUP THAT EDUCATES PEOPLE ABOUT GAYS AND LESBIANS THE REASON THOUSANDS OF UNITED WAY DONORS ARE DEMANDING AND EXERCISING THE RIGHT TO CHOOSE WHERE THEIR CHARITABLE DONATIONS GO THE TREND MAY BE DILUTING THE ORIGINAL CONCEPT OF THE UNITED WAY ONESTOP WORKPLACE GIVING ALLOCATED BY COMMUNITY REPRESENTATIVES GIVERS INCREASINGLY STEER THEIR MONEY TO LOCAL CHARITIES AS WELL AS TO FAVORITE CAUSES SUCH AS FIGHTING CANCER THUS THE POOL OF FUNDS AVAILABLE FOR BROAD TRADITIONAL HEALTH AND HUMAN SERVICES GROUPS LIKE THE LOCAL AMERICAN RED CROSS OR SALVATION ARMY IS SHRINKING THE NOTION THAT A GROUP OF PEOPLE WOULD SIT DOWN AND DECIDE WHERE THE MONEY WOULD GO IS ERODING VERY BADLY SAYS ELEANOR BRILLIANT A PROFESSOR OF SOCIAL WORK AT RUTGERS UNIVERSITY NEW BRUNSWICK NJ AND A FORMER EXECUTIVE OF THE UNITED WAY OF WESTCHESTER IN NEW YORK BUT THE UNITED WAY HAS BEEN EXTREMELY CREATIVE AT STAYING ALIVE ADDS MS BRILLIANT WHO WROTE A BOOK ON THE ORGANIZATION OFFICIALLY UNITED WAY OF AMERICA WHICH IS BASED IN ALEXANDRIA VA SAYS ABOUT 35 OF LOCAL UNITED WAYS ALLOW DONORS TO EARMARK GIFTS FOR QUALIFIED NONPROFITS OUTSIDE THE TRADITIONAL AGENCIES IN THE UNITED WAY SYSTEM MOST UNITED WAYS HOWEVER WILL QUIETLY HONOR ANY PLEDGE WRITTEN TO AN OUTSIDE GROUP BUT THAT VARIES FROM UNITED WAY TO UNITED WAY SAYS ROBERT O'CONNOR A VICE PRESIDENT OF RESEARCH IN ALEXANDRIA SOME UNITED WAYS ALLOW DONORS TO EARMARK DOLLARS ONLY TO MEMBER AGENCIES OR AFFILIATE AGENCIES OR TO CLUSTERS OF AGENCIES THAT SERVE A SPECIFIC FIELD SUCH AS HOMELESSNESS MORE ACCOMMODATING LOCALS ALLOW DESIGNATION TO AGENCIES OUTSIDE THE UNITED WAY NETWORK OR TO ANY QUALIFIED NONPROFIT SOME RUN COMBINED CAMPAIGNS WITH ANOTHER FEDERATED GROUP SUCH AS THE BLACK UNITED FUND A STUDY BY UNITED WAY OF AMERICA SHOWS THAT DONORS DO WANT A CHOICE DESIGNATED CONTRIBUTIONS ROSE 43 TO 172 MILLION IN 1991 OR SOME 13 OF ALL GIFTS FROM 121 MILLION IN 1989 OR 94 OF TOTAL CONTRIBUTIONS AND GIFTS EARMARKED THROUGH THE UNITED WAY DRIVE FOR NONPROFITS OUTSIDE THE UNITED WAY NETWORK ROSE 32 TO 345 MILLION DURING THE SAME PERIOD THE TREND TOWARD EARMARKING GIFTS HAS CONTINUED OFFICIALS SAY SO HAS THE DESIRE OF OUTSIDE GROUPS TO TAP UNITED WAY'S SYSTEM THE NATIONAL RIFLE ASSOCIATION'S NRA FOUNDATION RECENTLY TOOK AIM AT UNITED WAY FUND RAISING BY ASKING NRA MEMBERS TO DESIGNATE THE FOUNDATION'S NAME ON WORKPLACE PLEDGE CARDS THE CONTROVERSIAL PITCH COMES AS THE 2100 OR SO LOCAL UNITED WAYS ARE IN THE THICK OF THEIR 1993 FUNDRAISING DRIVES LAST YEAR LOCAL UNITED WAYS RAISED 304 BILLION DOWN 41 FROM THE 1991 DRIVE LARGELY DUE TO THE POOR ECONOMY AND A SPENDING SCANDAL SURROUNDING THE VIRGINIA ORGANIZATION'S FORMER PRESIDENT THE NRA FOUNDATION MADE ITS APPEAL BY ADVERTISING IN ITS AMERICAN RIFLEMAN AND AMERICAN HUNTER MAGAZINES THE ADS LABELED AN IMPORTANT MESSAGE FOR UNITED WAY CONTRIBUTORS TELL DONORS THEY CAN DESIGNATE ALL OR PART OF YOUR CONTRIBUTION TO THE NRA FOUNDATION THE ADS ALSO INCLUDE A SAMPLE DESIGNATION CARD TO BE TURNED IN WITH THE DONOR'S UNITED WAY PLEDGE FORM SEVERAL UNITED WAY OFFICIALS EXPRESSED CONCERN THAT THE USE OF THE NAME WOULD MAKE CONTRIBUTORS THINK THE APPEAL HAD UNITED WAY SANCTION UNITED WAY OFFICIALS WORRY THAT DONORS WILL MISTAKENLY VIEW THE NRA AS A MEMBER AGENCY BECAUSE OF THE ADS JUST HOW LOCAL UNITED WAYS HANDLE ANY GIFTS TO THE NRA FOUNDATION WILL DEPEND ON THEIR DONORCHOICE POLICY AFTER THE NRA ADS AND PHONE CALLS FROM LOCALS THE NATIONAL OFFICE FAXED GUIDELINES REMINDING LOCALS TO LOOK TO THE FINE PRINT IN THEIR BYLAWS TO DEAL WITH THE NRA APPEAL FOR INSTANCE MANY LOCALS REQUIRE THAT A BENEFICIARY GROUP MAINTAIN A PHYSICAL PRESENCE IN THE COMMUNITY MANY REQUIRE A GROUP TO BE REGISTERED WITH THE LOCAL STATE CHARITABLE COMMISSION AND ALL AGENCIES MUST FIT THE ORGANIZATION'S HEALTH AND HUMAN SERVICES MISSION FOR ITS PART THE NRA FOUNDATION MAINTAINS IT MEETS UNITED WAY CRITERIA NO MONEY GOES TO ANY KIND OF LEGISLATIVE EFFORT OR POLITICAL CAMPAIGN SAYS WH PHILLIPS TREASURER OF THE NRA FOUNDATION HE SAYS FOUNDATION ACTIVITIES SUCH AS THE EDDIE EAGLE GUNSAFETY PROGRAM FOR SCHOOLCHILDREN MEET THE SOCIAL SERVICES CRITERION THE NRA ISN'T THE FIRST GROUP TO TRY TO CRACK THE UNITED WAY SYSTEM BUT IT APPEARS TO BE THE FIRST MAJOR BID TO CIRCUMVENT UNITED WAY CHANNELS BY DIRECTING DONORS TO CUSTOMIZE THEIR PLEDGE CARDS OTHER FUNDS HAVE SUCCEEDED IN RUNNING SIDEBYSIDE CAMPAIGNS WITH THE UNITED WAY FOR INSTANCE THE ENVIRONMENTAL FEDERATION OF NEW YORK BATTLED TO GET ON SOME TICKETS LAST YEAR FOR THE STATE EMPLOYEE FEDERATED APPEAL A DRIVE LINKED WITH THE STATE'S UNITED WAYS HAVING WON PART OF ITS BATTLE THE FEDERATION WHICH IS BASED IN ALBANY NY AND REPRESENTS SOME 21 GREEN GROUPS WORRIES THAT IT MAY NOT BE GETTING ALL ITS PLEDGES RONALD KIM EXECUTIVE DIRECTOR OF THE ENVIRONMENTAL FEDERATION CALLS THE UNITED WAY'S ROLE AS A CLEARINGHOUSE A CLASSIC CASE OF THE FOX GUARDING THE HENHOUSE AND WORRIES THAT HIS GROUP DOESN'T ALWAYS RECEIVE DESIGNATED GIFTS THE UNITED WAY OF AMERICA'S MR O'CONNOR ACKNOWLEDGES THAT THERE CAN BE TIME LAGS I'M AWARE OF THOSE KINDS OF THINGS HE SUGGESTS THAT IT WOULD BE FAIR FOR A DONOR TO CALL THE LOCAL UNITED WAY IF A GIFT TO A NONMEMBER AGENCY ISN'T ACKNOWLEDGED BILL HART EXECUTIVE DIRECTOR OF ACHOICE A COALITION OF 23 GAY AND LESBIANRIGHTS GROUPS SAYS BUREAUCRATIC SLIPUPS MAY KEEP SOME UNITED WAY MONEY FROM GETTING TO HIS GROUP BUT ACHOICE HE ADDS STILL GETS A LOT FROM UNITED WAY IN 1990 THE FIRST YEAR IT WAS IN THE UNITED WAY CAMPAIGN ACHOICE SAW A 68 JUMP IN FUND RAISING TO 110000 HE NOTES OPENING DONORCHOICE OPTIONS CAN ALSO ADD COSTS TO A UNITED WAY'S OVERHEAD A GOOD NUMBER OF DONOR DESIGNATIONS REQUIRE INDEPENDENT PROCESSING THAT HAS A COST IMPACT SAYS HERBERT CARTER HEAD OF THE LARGE UNITED WAY OF GREATER LOS ANGELES CONSEQUENTLY MOST UNITED WAYS CHARGE A FEE FOR HANDLING DESIGNATED GIFTS FURTHER COMPLICATING THINGS SOME DONORS WANT TO WITHHOLD MONEY FROM CERTAIN MEMBER AGENCIES SUCH NEGATIVE DESIGNATIONS AREN'T HUGE BUT INCLUDE GROUPS SUCH AS PLANNED PARENTHOOD AND MENTALHEALTH ORGANIZATIONS OFFERING MORE CHOICES OF CHARITIES CAN ACTUALLY INCREASE OVERALL GIFTS SAYS VERNA BROOKINS MANAGER OF PUBLIC AFFAIRS AT POLAROID CORP CAMBRIDGE MASS THREE YEARS AGO POLAROID ADDED COMMUNITY WORKS A COALITION OF ECONOMIC AND SOCIALJUSTICE AGENCIES TO ITS CAMPAIGN UNITED WAY MONEY DID NOT GO DOWN SAYS MS BROOKINS INSTEAD OVERALL GIVING ROSE 22 THE FIRST YEAR TO MORE THAN 1 MILLION A GOAL MS BROOKINS SAYS THAT THE COMPANY IS MAINTAINING DESPITE EMPLOYEE CUTBACKS OF ALL THE MONEY THAT WAS DESIGNATED BY PRIVATESECTOR DONORS TO GROUPS AFFILIATED WITH THE UNITED WAY IN 1991 THESE ARE THE AGENCIES MOST OFTEN SPECIFIED AS PLACES TO WHICH PEOPLE WANTED OR DIDN'T WANT THEIR GIFTS TO GO SEE RELATED LETTER LETTERS TO THE EDITOR SPEAKING CHARITABLY ONE SIZE DOESN'T FIT ALL WSJ DEC 21 1993 9311120038 YY93 MM12 9312200167 931220 CANAL PLUS CHAIRMAN CITES ANTIPIRACY STEPS FOR POOR '94 OUTLOOK SPECIAL TO THE WALL STREET JOURNAL PARIS CANAL PLUS SA CHAIRMAN ANDRE ROUSSELET ATTRIBUTED THE FRENCH PAYTELEVISION COMPANY'S POOR 1994 OUTLOOK TO THE FACT THAT SOME 700000 DECODERS CURRENTLY USED BY CUSTOMERS WILL HAVE TO BE CHANGED IN ORDER TO COMBAT PIRATING MR ROUSSELET QUOTED IN AN INTERVIEW PUBLISHED FRIDAY IN THE FRENCH BUSINESS MAGAZINE VALEURS ACTUELLES ADDED THAT THE COMPANY ALSO WILL BE HURT BY A VERY HIGH LEVEL OF NONRENEWALS ON CONTRACTS THESE FACTORS WILL MAKE 1994 A VERY DIFFICULT YEAR HE SAID LAST WEEK CANAL PLUS SAID AN EXCEPTIONAL INVESTMENT SCHEDULE PLANNED FOR 1994 WILL DEPRESS CASH FLOW NEXT YEAR AND COULD KNOCK NET INCOME DOWN BY AS MUCH AS 20 FROM AN ESTIMATED 12 BILLION FRENCH FRANCS 2055 MILLION THIS YEAR AT THE TIME CANAL PLUS COMPLAINED THAT THE GOVERNMENT IS FORCING THE COMPANY TO INVEST HEAVILY IN FRANCE'S DYSFUNCTIONAL CABLETV NETWORK IN EXCHANGE FOR ALLOWING CANAL PLUS TO RETAIN A LUCRATIVE PAYTV LICENSING CONTRACT NEGOTIATIONS ON THE CONTRACT WHICH EXPIRES IN 1995 ARE UNDER WAY MR ROUSSELET SAID HE WASN'T VERY CONCERNED ABOUT LOSING THE COMPANY'S CURRENT PRIVILEGES HE ALSO SAID HE DOESN'T THINK THE GOVERNMENT WILL PREVENT CANAL PLUS FROM AIRING COMMERCIALS DURING THE HOURS WHEN IT BROADCASTS UNSCRAMBLED PROGRAMS ALTHOUGH HE SAID THE AMOUNT OF ADVERTISING MIGHT BE CAPPED MR ROUSSELET SAID HE WAS SATISFIED WITH THE RESULTS OF THE JUSTCONCLUDED URUGUAY ROUND OF NEGOTIATIONS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN WHICH COUNTRIES FAILED TO REACH ACCORD ON THE AUDIOVISUAL SECTOR HE SAID THAT AUDIOVISUAL PROFESSIONALS MUST CREATE A LARGE ATLANTIC MARKET AND THAT THE BEST WAY FOR FRANCE TO DEFEND ITS INTERESTS IS TO PARTICIPATE IN US FILM INVESTMENTS 9312200166 931220 INTERNATIONAL EMBOLDENED BY STRONG ECONOMY CHINA SPEAKS OUT AND COMMANDS RESPECT BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING AT THE MCDONALD'S RESTAURANT NEAR TIANANMEN SQUARE TWO COMMUNIST PARTY CADRES VISITING THE CAPITAL SIT DOWN TO SAMPLE AMERICAN FAST FOOD FOR THE FIRST TIME WHILE THE TWO QUICKLY POLISH OFF THEIR BURGERS AND COKES THEY'RE MUCH LESS WILLING TO SWALLOW WHAT THEY LABEL AS US ATTEMPTS AT HEGEMONY THE US ALWAYS LIKES TO SEE ITSELF AS THE OLDER BROTHER BUT IT SHOULD GET ITS OWN AFFAIRS IN ORDER BEFORE MEDDLING IN OTHER PEOPLE'S BUSINESS ONE OFFICIAL SCOLDS BEIJING HAS ALWAYS HAD SOMETHING OF A LOVEHATE RELATIONSHIP WITH WASHINGTON BUT CHINA'S BOOMING ECONOMY AND A CHANGING WORLD ORDER ARE BOLSTERING ITS CONFIDENCE THE RESULT IS THAT CHINA IS BECOMING MORE NATIONALISTIC AT HOME AND MORE VOCAL ABROAD ESPECIALLY IN ITS DEALINGS WITH THE US MANY CHINESE POINT TO LAST MONTH'S MEETING BETWEEN COMMUNIST PARTY GENERAL SECRETARY JIANG ZEMIN AND PRESIDENT CLINTON IN SEATTLE AS EVIDENCE OF US RECOGNITION THAT CHINA COMMANDS MORE RESPECT THESE DAYS MR JIANG WHO LECTURED MR CLINTON FOR 15 MINUTES ON HOW COUNTRIES SHOULDN'T INTERFERE IN ONE ANOTHER'S INTERNAL AFFAIRS RETURNED HOME PRETTY COCKY ONE US CONGRESSMAN TOLD A FRIEND AFTER MEETING WITH THE GENERAL SECRETARY IN BEIJING RELATIONS BETWEEN CHINA AND THE US GOT OFF TO A BAD START UNDER THE CLINTON ADMINISTRATION DURING HIS PRESIDENTIAL CAMPAIGN LAST YEAR MR CLINTON TALKED TOUGH ABOUT CHINA AFTER HE TOOK OFFICE IN JANUARY THE TWO SIDES CLASHED OVER NUMEROUS ISSUES INCLUDING CHINA'S TRADE SURPLUS WITH THE US WHICH IS EXPECTED TO EXCEED 23 BILLION THIS YEAR THE OPPOSITION OF MANY IN CONGRESS TO CHINA'S FAILED BID TO HOST THE 2000 OLYMPICS AND CHINA'S ALLEGED SALE OF M11 MISSILES TO PAKISTAN SOME CHINESE ATTRIBUTE THESE CONFLICTS TO WHAT THEY DESCRIBE AS THE NEW ADMINISTRATION'S INEXPERIENCE AND LACK OF A WIDER FOREIGN POLICY VISION BUT THE RECENT MEETINGS SHOW THAT CLINTON FEELS THAT THE US MUST IMPROVE RELATIONS WITH CHINA SAYS WANG JISI DEPUTY DIRECTOR OF THE INSTITUTE OF AMERICAN STUDIES AT THE CHINESE ACADEMY OF SOCIAL SCIENCES THE US NEEDS CHINA A LOT NOW FOR ONE THING AS MUCH OF THE WEST STRUGGLES WITH SLUGGISH GROWTH OR RECESSION CHINA'S ECONOMY CONTINUES TO RACE AHEAD AT A DOUBLEDIGIT PACE DRAWING IN SOME 15 BILLION IN FOREIGN INVESTMENT THIS YEAR MOREOVER PEACEFUL RELATIONS WITH ITS NEIGHBORS AND A CHANGING WORLD ORDER ARE BOOSTING CHINA'S CONFIDENCE AT THE SAME TIME THOUGH THE END OF THE COLD WAR MAY HAVE ADDED TO STRAINS BETWEEN CHINA AND THE US IN BEIJING'S VIEW THE US CONTINUES TO APPLY POWER POLITICS IN AN ERA THAT NO LONGER WARRANTS IT SOME CHINESE ALSO BELIEVE THAT THE US IS MORE WILLING TO PRESSURE BEIJING TO CHANGE NOW THAT IT DOESN'T NEED CHINA TO BALANCE THE FORMER SOVIET UNION WE DON'T DO ANYTHING TO HARM USCHINA RELATIONS SAYS ZHAN SHILIANG DEPUTY DIRECTORGENERAL OF THE INDEPENDENT CHINA CENTER FOR INTERNATIONAL STUDIES BUT NOW THE US PUTS SO MUCH PRESSURE ON CHINAFIRST HUMAN RIGHTS THEN THE ECONOMY WHAT FOR IN SOME WAYS CHINA APPEARS MORE WILLING TO COMPROMISE NOW FROM ITS NEW POSITION OF STRENGTH ESPECIALLY WHEN THE US RECIPROCATES IN SEATTLE CHINA'S VICE FOREIGN MINISTER MET WITH JOHN SHATTUCK US ASSISTANT SECRETARY OF STATE FOR HUMAN RIGHTS FOR FOUR HOURS TO DISCUSS HUMAN RIGHTS SAYS ONE WESTERN DIPLOMAT THIS SUGGESTS THAT CHINA IS SEARCHING FOR WAYS TO SATISFY THE CRITERIA NECESSARY TO RETAIN ITS ACCESS TO US MARKETS WHEN WASHINGTON MOVES TO RENEW ITS TRADE POLICY WITH CHINA NEXT YEAR THE DIPLOMAT SAYS BUT THE ISSUES OF TRADE ARMS SALES AND HUMAN RIGHTS AREN'T GOING TO GO AWAY AND GROWING FEELINGS OF NATIONALISM ARE MAKING CHINESE MORE CRITICAL OF THE US AND MORE VOCAL ABOUT THEIR VIEWS TO SOME EXTENT CHINESE LEADERS APPEAR TO BE ENCOURAGING SUCH FEELINGS OF NATIONALISM IN THE ABSENCE OF ANOTHER IDEOLOGY TO BIND THE COUNTRY TOGETHER CHINESE SCHOOLS FOR EXAMPLE HAVE BEGUN TO SHOW PATRIOTIC FILMS DEPICTING HEROES WHO OPPOSE COLONIALISM LIKE ALL DEVELOPING COUNTRIES IT'S VERY EASY FOR CHINA TO HAVE A SENSE OF RESENTMENT AGAINST THE MOST POWERFUL COUNTRY IN THE WORLD SAYS JOSEPH CHENG DEAN OF HUMANITIES AND SOCIAL SCIENCES AT CITY POLYTECHNIC OF HONG KONG CHINESE LEADERS ARE ATTEMPTING TO EXPLOIT THIS SENSE OF NATIONALISM BECAUSE THEY KNOW COMMUNISM DOESN'T APPEAL TO PEOPLE ANYMORE 9312200165 931220 INTERNATIONAL VOLKSWAGEN AGREES TO FORGIVE DEBT OF SPANISH UNIT BY MARK M NELSON STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN GERMAN AUTO MAKER VOLKSWAGEN AG AGREED TO FORGIVE 14 BILLION MARKS 819 MILLION IN DEBT OWED BY ITS STRUGGLING SPANISH UNIT SEAT SA IN EXCHANGE FOR MASSIVE JOB CUTS AND THE CLOSING OF A PLANT IN BARCELONA AFTER A SPECIAL BOARD MEETING TO DISCUSS THE FUTURE OF THE SPANISH AFFILIATE VW BOARD MEMBERS SAID THEY HAD APPROVED A RESTRUCTURING PLAN THAT THEY HOPED WOULD SET SEAT ON A PROFITABLE PATH SEAT WHICH IS EXPECTED TO POST AN OPERATING LOSS OF 12 BILLION MARKS FOR THIS YEAR WILL HAVE TO SHED MORE THAN 40 OF ITS 22400 EMPLOYEES UNDER THE PLAN VW SAID SEAT CHAIRMAN JUAN LLORENS WAS PLEASED THAT VW AGREED TO THE RESTRUCTURING PLAN WHICH HAS BEEN THE SUBJECT OF WEEKS OF TORTUROUS NEGOTIATIONS STRIKES BY SPANISH UNIONS AS WELL AS HIGHLEVEL POLITICAL INTRIGUE TODAY IS A NEW BEGINNING FOR SEAT MR LLORENS SAID IN A STATEMENT RELEASED AFTER THE VW BOARD MEETING BUT VW CHAIRMAN FERDINAND PIECH WARNED THAT THE NEW CAPITAL WOULDN'T IN ITSELF CURE SEAT'S MANY ILLS NOW THAT THESE EXTREMELY DIFFICULT NEGOTIATIONS IN SPAIN HAVE COME TO AN END HE SAID SEAT MUST TURN ALL ENERGIES TO WINNING SALES AND CUSTOMERS PLANS TO CUT JOBS AT SEAT WERE INITIALLY DENIED BY VW WHEN THEY WERE FIRST RUMORED IN OCTOBER SINCE THEN THE PLANNED CUTBACKS HAVE BECOME A CAUSE CELEBRE FOR SPANISH LABOR UNIONS THE UNIONS FEAR THE CUTS WOULD START A NEW WAVE OF JOB LOSSES IN SPAIN WHICH HAS THE EUROPEAN COMMUNITY'S HIGHEST UNEMPLOYMENT RATE CURRENTLY MORE THAN 22 IN ALL SEAT WILL LOSE ABOUT 9000 PEOPLE UNDER THE PLAN A VW SPOKESMAN SAID THE 14 BILLION MARK FINANCING PLAN INVOLVED NO CASH TRANSFER BUT INSTEAD WAS A FORGIVENESS OF PART OF SEAT DEBT ASSUMED BY VW WHEN SEAT WAS PURCHASED SEVEN YEARS AGO THE WHOLE COST OF THIS RESTRUCTURING IS COMING FROM SEAT ITSELF HE SAID SEAT ALSO WILL SELL ITS FISEAT FINANCIAL SUBSIDIARY TO VOLKSWAGEN FINANCIAL SERVICES AG FOR 220 MILLION MARKS 9312200164 931220 WHO'S NEWS TELUS CORP TELUS CORP CALGARY ALBERTA NEIL WEBBER CHAIRMAN OF THIS TELEPHONE COMPANY SINCE NOVEMBER 1989 SAID HE WON'T STAND FOR REAPPOINTMENT AFTER THE COMPANY'S ANNUAL MEETING IN APRIL DR WEBBER 57 YEARS OLD AND A FORMER ALBERTA ENERGY MINISTER SAID HE IS STEPPING ASIDE TO PURSUE OTHER INTERESTS HE HAS AGREED TO CONTINUE TO SERVE AS A DIRECTOR 9312200163 931220 WHO'S NEWS U S WEST INC U S WEST INC GARY BRYSON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TELEWEST INTERNATIONAL LONDON RESIGNED EFFECTIVE JAN 1 IT WAS ANNOUNCED BY TELEWEST OWNERS U S WEST AND TELECOMMUNICATIONS INC MR BRYSON WILL RETURN TO THE US TO PURSUE OTHER OPPORTUNITIES THE COMPANIES SAID A SUCCESSOR HASN'T BEEN NAMED YET 9312200162 931220 ENTERPRISE COMPANY WINS WORKERS' LOYALTY BY OPENING ITS BOOKS BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL JACK STACK A FAILED MISSIONARY WHO WAS KICKED OUT OF COLLEGE BELIEVES HE HAS FOUND A FORMULA FOR BUSINESS SUCCESS HE SHARES ALL OF HIS SMALL COMPANY'S FINANCIAL INFORMATION WITH EMPLOYEES ALL OF IT FOR 10 YEARS WORKERS AT SPRINGFIELD REMANUFACTURING CORP AN ENGINE REBUILDER IN SPRINGFIELD MO HAVE GOTTEN WEEKLY PEEKS AT EVERYTHING FROM REVENUE AND PURCHASING COSTS TO MANAGEMENT AND LABOR EXPENSES PARTLY BECAUSE OF THIS PRACTICE THE PRIVATELY HELD CONCERN PULLED BACK FROM THE BRINK AND IS POSTING RECORD GROWTH OFFICIALS SAY SRC SAYS REVENUE CLIMBED TO 73 MILLION LAST YEAR FROM ABOUT 18 MILLION IN 1983 IT PROJECTS REVENUE OF 85 MILLION FOR 1993 THE MORE EMPLOYEES LEARNED THE MORE THEY COULD DO RECOLLECTS MR STACK SRC'S 44YEAROLD PRESIDENT WE MATCHED UP HIGHER LEVELS OF THINKING WITH HIGHER LEVELS OF PERFORMANCE SRC EMPLOYEES WHO ALSO OWN 31 OF THE COMPANY CLEARLY HAVE RESPONDED POSITIVELY TO THIS STRATEGY KNOWN AS OPENBOOK MANAGEMENT MANY SAY THEY FEEL EXTREMELY LOYAL TO THE BUSINESS HAVE A HEIGHTENED SENSE OF COMMUNITY AND WILL DO WHATEVER IT TAKES TO MAINTAIN COMPETITIVENESS INCLUDING DEFERRING WAGE INCREASES WHILE SRC WORKERS OBVIOUSLY VALUE THEIR BIG STOCK HOLDING THEY MAINTAIN THAT IT'S EVEN MORE IMPORTANT TO UNDERSTAND THE COMPANY'S NUMBERS LIMITED INFORMATION SHARING HAS RECENTLY COME INTO VOGUE AMONG NUMEROUS SMALL COMPANIES EAGER TO ENHANCE PRODUCTIVITY BUT FEW HAVE EMBRACED INFORMATION SHARING WITH AS MUCH GUSTO AS SRC ITS OPENBOOK APPROACH IS GENERATING INTENSE INTEREST AMONG BUSINESSES BIG AND SMALL SRC SAYS ABOUT 1500 COMPANIES INCLUDING MANY FORTUNE 500 CONCERNS HAVE TOURED ITS FACILITIES TO LEARN MORE ABOUT THE MERITS OF DISCLOSING EVERYTHING TO RANKANDFILE WORKERS IN PARTICULAR OPENBOOK MANAGEMENT IS GETTING MORE ATTENTION AMONG ENTREPRENEURS IN GROWTH COMPANIES IT'S SEEN AS AN IMPORTANT WAY TO INVOLVE EMPLOYEES IN THE GROWTH OF THE ENTERPRISE SAYS RAY SMILER VICE PRESIDENT OF THE CENTER FOR ENTREPRENEURIAL LEADERSHIP A TRAINING AND RESEARCH GROUP IN KANSAS CITY MO SRC IS SEEN AS A PIONEER IN THE FIELD HE CONTINUES IT IS A STUNNING EXAMPLE OF HOW WELL THE IDEA WORKS SRC BEGAN IN 1974 AS INTERNATIONAL HARVESTER RENEW CENTER A REPAIR AND SERVICES DIVISION OF CHICAGO MACHINERY GIANT INTERNATIONAL HARVESTER CO RENEW CENTER EMPLOYEES AND FORMER INTERNATIONAL HARVESTER MANAGERS SAY THE DIVISION WAS POORLY MANAGED FROM THE OUTSET WORKERS' DISTRUST RAN SO DEEP THAT THEY OFTEN INDICATED THEIR READINESS FOR MANAGEMENT'S LATEST SNOW JOB BY WEARING RAINCOATS AND GALOSHES TO COMPANY MEETINGS IN 1979 AS ITS OWN FORTUNES BEGAN TO SAG INTERNATIONAL HARVESTER DECIDED TO CLOSE THE DIVISION AND GAVE MR STACK THE UNPLEASANT TASK AT THAT TIME MR STACK HAD WORKED HIS WAY UP FROM INTERNATIONAL HARVESTER'S CHICAGO MAIL ROOM TO BECOME A MANAGERIAL WHIZ KID THEN ONLY 29 YEARS OLD HE SAYS HE HAD SPENT HIS FIRST 20 YEARS BASICALLY FAILING AT EVERYTHING I TRIED THAT INCLUDED A STINT IN MISSIONARY SCHOOL EXPULSION FROM COLLEGE FOR EXCESSIVE DRINKING HE LATER EARNED HIS DEGREE AT NIGHT AND REJECTION BY THE MARINES MR STACK SAYS A TOUR OF THE REPAIR FACILITY MADE HIM REALIZE THAT THE DIVISION'S 170 YOUNG EMPLOYEES WANTED TO BE MORE CHALLENGED BY THEIR WORK HE PERSUADED INTERNATIONAL HARVESTER TO LET HIM TRY A TURNAROUND HE BEGAN BY SOLICITING EMPLOYEES' OPINIONS ON HOW TO IMPROVE THE PLANT'S OPERATION HE ALSO SHARED LIMITED FINANCIAL INFORMATION WITH THEM AND AWARDED BONUSES TO ANYONE WHO MET FINANCIAL TARGETS THE RESULTS WERE IMMEDIATE FOR EXAMPLE INVENTORY ACCURACY A MEASURE OF INHOUSE AVAILABILITY OF REPLACEMENT PARTS LEAPT TO 99 FROM 48 BETWEEN 1979 AND 1980 AND HAS REMAINED AT THAT LEVEL EVER SINCE BUT BY 1983 INTERNATIONAL HARVESTER WAS BLEEDING MORE RED INK AND DECIDED TO SELL THE DIVISION MR STACK AND 12 OTHER MANAGERS BOUGHT THE UNIT WITH 100000 OF THEIR MONEY AND AN 89 MILLION BANK LOAN CARRYING AN 18 INTEREST RATE AFTER THE BUYOUT 119 EMPLOYEES REMAINED THE COMPANY RENAMED SRC ESTABLISHED AN EMPLOYEE STOCK OWNERSHIP PLAN LATER THAT YEAR IT ALSO STEPPED UP THE BONUS PROGRAM AND BROADENED ITS DISCLOSURE POLICY TO COVER ALL FINANCIAL FIGURES EACH WEEK MANAGERS DISTRIBUTE THE LATEST NUMBERS AND HELP EMPLOYEES LEARN HOW TO EVALUATE THEM EVERY EMPLOYEE KNOWS THAT IF THE VALUE OF THE COMPANY INCREASES SO DOES THE VALUE OF THEIR SHARES SAYS TOM SAMSEL AN SRC VICE PRESIDENT TO BE SURE MANY EMPLOYEES FELT UNCOMFORTABLE LEARNING ABOUT THE NUTS AND BOLTS OF CORPORATE FINANCIAL STATEMENTS FREEMAN TRACY AN ENGINE REBUILDER EMPLOYED SINCE 1979 SAYS HE INITIALLY THOUGHT THE WHOLE PROCESS WAS A BUNCH OF WIND AND THREW THE STATEMENTS IN THE GARBAGE BUT THREE YEARS AGO MR TRACY FINALLY GOT HOOKED ON KNOWING THE COMPANY'S NUMBERS HE SAYS HE PAYS SPECIAL ATTENTION TO PURCHASING COSTS AND HOW LONG IT TAKES TO CLEAN PARTS OTHER EMPLOYEES ALSO SPEAK GLOWINGLY OF OPENBOOK MANAGEMENT WHEN I CAME HERE I DIDN'T REALIZE THAT AS A WORKER ON THE FLOOR YOU COULD HAVE A DIRECT IMPACT ON THE PROFIT SAYS CANDICE SMALLEY A NOZZLE REBUILDER AT SRC FOR 10 YEARS WHEN WE STARTED SEEING THE FINANCIALS AND HEARING ABOUT USAGE AND OVERHEAD IT MADE US START TRYING TO IMPROVE OUR QUALITY DENISE BREDFELDT THE TRAINING DIRECTOR AGREES WHEN THINGS GET BAD PEOPLE START BRAINSTORMING ABOUT HOW TO IMPROVE THINGS BECAUSE THEY CARE SHE SAYS BEFORE THEY WOULD JUST PUNCH THE CLOCK AND LEAVE INDEED THE COMPANY'S VALUE HAS INCREASED SIGNIFICANTLY ON A PRESPLIT BASIS THE STOCK HAS SPLIT THREE TIMES EACH SHARE IS VALUED AT 1860 UP FROM 10 CENTS WHEN THE ESOP WAS INTRODUCED THE EMPLOYEES' STOCK FUND HAS CLIMBED TO 55 MILLION FROM 6000 IN THE PERIOD SRC NOW OPERATES 13 PLANTS WITH 750 EMPLOYEES NOW SRC IS LOOKING TO GROW FURTHER BY SOLICITING NEWPRODUCT IDEAS FROM EMPLOYEES THE CONCERN SAYS IT ENCOURAGES STAFF MEMBERS TO DEVELOP BUSINESS PLANS AND INVESTS IN THE BEST ONES FOR EXAMPLE A BUSINESS PLAN DEVISED BY MS BREDFELDT LED SRC TO CREATE A SUBSIDIARY CALLED BIZLIT CORP THE COMPANY STARTED IN AUGUST PUBLISHES A WORKBOOK ON HOW TO TRAIN EMPLOYEES TO READ FINANCIAL STATEMENTS SO FAR IT HAS SOLD 1000 COPIES AT 40 EACH 9312200161 931220 REVIEW & OUTLOOK EDITORIAL ASIDES A KLAN CHRISTMAS YOU'RE FAMILIAR WITH OUR COVERAGE OF ACLU LAWSUITS AGAINST PUBLIC CHRISTMAS DISPLAYS A FEDERAL JUDGE IN CINCINNATI JUST RULED THAT THE CITY CAN'T STOP THE KU KLUX KLAN FROM SPONSORING AND ERECTING A CROSS IN A SQUARE DOWNTOWN THE ACLU ARGUED ON THE KLAN'S BEHALF IN COURT THE KLAN ITSELF SAYS IT'S A CHRISTIAN CROSS NOT A KLAN CROSS WE KNOW SOMETHING'S WRONG IN THERE SOMEWHERE 9312200160 931220 VISION VS REALITY MORE THAN PARAMOUNT IS AT STAKE AS NEW BIDS ARE READIED IN BUYOUT DILLER REDSTONE ARE SEEKING BRAGGING RIGHTS AS PRICE IS SEEN EXCEEDING VALUE VIEWING THE STUDIO AS A GEM BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL HOW MUCH ARE BRAGGING RIGHTS WORTH TO THE WINNER OF THE LAST OF THE AVAILABLE MAJOR HOLLYWOOD STUDIOS IF YOU ARE BARRY DILLER OR SUMNER REDSTONE PERHAPS AN EXTRA 2 BILLION MAYBE 3 BILLION DOLLARS LAST TUESDAY BOWING TO PRESSURE FROM A DELAWARE COURT PARAMOUNT COMMUNICATIONS INC ANNOUNCED THAT IT WILL AUCTION ITSELF TO THE HIGHEST BIDDER EFFECTIVELY ABANDONING ITS 96 BILLION MERGER AGREEMENT WITH MR REDSTONE'S VIACOM INC SEALED BIDS ARE DUE TODAY BUT BOTH VIACOM AND ITS RIVAL BIDDER MR DILLER'S QVC NETWORK INC WILL LATER BE ABLE TO REVISE THEIR CASHANDSTOCK OFFERS BOTH ARE EXPECTED TO SWEETEN THEIR TERMS AND PERHAPS WITH THE HELP OF OUTSIDE INVESTORS ALREADY ON BOARD OFFER MORE CASH THAN IN PREVIOUS BIDS AS A RESULT PARAMOUNT WILL PROBABLY FETCH MORE THAN 10 BILLION YET BEFORE THE THREEMONTHLONG TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS ENSUED MOST INDUSTRY EXECUTIVES AND ANALYSTS ESTIMATED THAT PARAMOUNT WAS VALUED AT BETWEEN 8 BILLION AND 9 BILLION AT MOST SHAREHOLDERS STAND TO BENEFIT OF COURSE IN MOST AUCTIONS BUT SOME MAJOR PARAMOUNT HOLDERS HAVE ALREADY BAILED OUT AND LAST WEEK SOME ANALYSTS WERE URGING CLIENTS TO SELL THEIR PARAMOUNT SHARES IN THE MARKET FOR CASH THOUGH NEW BIDS ARE EXPECTED TO INCLUDE SOME PRICE PROTECTION FOR PARAMOUNT HOLDERS THE STOCK OF THE ACQUIRING COMPANY IS LIKELY TO PLUNGE SO THE WINNER WILL REALLY BE THE LOSER IN THE EYES OF THE STOCK MARKET SAYS JESSICA REIF AN ANALYST WITH OPPENHEIMER & CO IN NEW YORK THE BATTLE FOR PARAMOUNT HAS SHARPLY FOCUSED THE DEBATE OVER THE VALUE BOTH REAL AND PERCEIVED OF OWNING A MAJOR PROVIDER OF SOFTWARE SUCH AS MOVIES AND TELEVISION SHOWS TO BE SURE AS COMPANIES JOCKEY FOR POSITION IN THE MULTIMEDIA AGE AND PREPARE FOR THE INFORMATIONSUPERHIGHWAY RACE THE VALUE OF SUCH ASSETS HAS INCREASED AND WITH ONLY A HANDFUL OF HOLLYWOOD STUDIOS SUCH COMPANIES HAVE ALWAYS TRADED HANDS AT A PREMIUM BUT THERE IS LITTLE EVIDENCE THAT CONSUMERS WILL SPEND MORE ON ENTERTAINMENT THAN THEY DO ALREADY OR THAT THE NEW ELECTRONICDISTRIBUTION TECHNOLOGIES WON'T SIMPLY SIPHON REVENUES FROM EXISTING PASTIMES LIKE RENTING VIDEOS AND GOING TO MOVIE THEATERS AND THE PRICE TAG FOR PARAMOUNT'S ENTERTAINMENT AND PUBLISHING ASSETS MAY ALREADY BE TOO RICH TO EVER BRING ITS INVESTORS A SOLID RETURN WE'RE IN A BIT OF A TULIP CRAZE NOW SAYS INVESTMENT BANKER AND FORMER ENTERTAINMENT EXECUTIVE EMANUEL GERARD REFERRING TO THE LEGENDARY 17THCENTURY TULIP BUST WHEN DUTCH INVESTORS BID UP THE PRICE OF A RARE TULIP BULB AND WENT BROKE WHEN THE PRICE CRASHED THIS IS IN THE LATE STAGES OF SEMINUTTINESS AND THE QUESTION IS ARE THINGS JUST EGODRIVEN FOR THIS DEAL AT THIS POINT FOR MANY PEOPLE INCLUDING SOME INVOLVED WITH THE BIDDERS THE ANSWER IS A RESOUNDING YES THEY SAY THE PARAMOUNT CONTEST HAS BECOME IN LARGE MEASURE A BATTLE OF WILLS BETWEEN TWO OF THE ENTERTAINMENT INDUSTRY'S MOST POWERFUL PLAYERS MESSRS REDSTONE AND DILLER MR REDSTONE 70 YEARS OLD AN IRASCIBLE BILLIONAIRE WHO BUILT HIS FORTUNE FROM A FEW FAMILYOWNED DRIVEIN MOVIE THEATERS IN MASSACHUSETTS HAS VOWED THAT NOTHING SHORT OF A NUCLEAR EXPLOSION WILL BUST UP HIS PARAMOUNT DEAL MR DILLER 51 A COLLEGE DROPOUT WHO MADE HIS NAME AS A YOUNG ABC PROGRAMMING WHIZ RAN PARAMOUNT PICTURES IN THE EARLY 1980S THEN STARTED THE FOX NETWORK NOW HE YEARNS TO CREATE HIS OWN EMPIRE OUT OF THE STUDIO HE ONCE RAN AND THE HOMESHOPPING COMPANY HE HEADS WIELDING EQUAL OR GREATER CLOUT THAN POWERFUL FRIENDS LIKE ENTERTAINMENT MOGUL DAVID GEFFEN AND WALT DISNEY CO CHAIRMAN MICHAEL EISNER ALREADY PEOPLE IN BOTH THE QVC AND VIACOM CAMPS SAY PRIVATELY THAT PRICE HAS LARGELY CEASED TO BE A FACTOR ACCORDING TO DOCUMENTS FILED IN CONNECTION WITH A LAWSUIT QVC BROUGHT AGAINST PARAMOUNT IN DELAWARE CHANCERY COURT MR DILLER FIRST WEIGHED A BID LAST APRIL FOR PARAMOUNT AT 65 A SHARE PARAMOUNT STOCK WAS TRADING AT THE TIME AT AROUND 50 A SHARE ITS HIGHEST LEVEL IN NEARLY THREE YEARS THE CURRENT QVC OFFER VALUED AT 8405 A SHARE OR 101 BILLION IS AS A MULTIPLE OF CASH FLOW NEAR THE HIGHEST PRICE EVER PAID FOR A STUDIO THE 1989 PURCHASE OF COLUMBIA PICTURES ENTERTAINMENT CORP QVC'S OFFER IS 10 POINTS OVER WHAT IT SHOULD BE SAYS ONE PERSON IN THE QVC CAMP THE QUESTION IS HOW CAN BARRY'S TALENTS MAKE UP IN TWO TO THREE YEARS WHAT HE IS OVERPAYING FOR TODAY MR DILLER REJECTS THE NOTION THAT THE BIDDING HAS GOTTEN OUT OF CONTROL OUR CURRENT BID IS TOTALLY RESPONSIBLE AND NOT FILLED WITH AN OUNCE OF EGO HE SAYS WE AREN'T WINNING AT ANY COST THERE IS PLENTY OF ROOM TO BUILD AND GROW THIS COMPANY THESE ASSETS ARE IRREPLACEABLE AND FIVE YEARS FROM NOW PARAMOUNT WILL LOOK CHEAP AT THIS PRICE MR REDSTONE DIDN'T RETURN PHONE CALLS SEEKING COMMENT BUT CLEARLY BOTH MEN BELIEVE THAT PARAMOUNT IS WORTH A STEEP PRICE BOTH MEN BADLY NEED A STUDIO IF THEY ARE TO PIECE TOGETHER MAJOR ENTERTAINMENT EMPIRES OF THEIR OWN AND PARAMOUNT WHICH PRODUCED AND DISTRIBUTED THE FIRM AND INDECENT PROPOSAL AND OWNS SIMON & SCHUSTER AS WELL AS TWO PRO SPORTS TEAMS WOULD BE A CROWN JEWEL THE DRIVE TO SUCCEED NO MATTER WHAT THE COST IS SO INTENSE THAT THE TWO MEN ONCE FRIENDS ARE NOW ADVERSARIES MR REDSTONE WHO USED TO PRAISE MR DILLER AS THE INDUSTRY'S SMARTEST STUDIO CHIEF NOW SNEERINGLY REFERS TO QVC AS A MERE SHOPPING CHANNEL MR REDSTONE'S LIEUTENANTS HAVE WORKED DILIGENTLY TO DAMP WALL STREET'S ENTHUSIASM FOR WHAT THEY DISPARAGINGLY CALL THE DILLER SIZZLE TRYING TO POKE HOLES IN HIS RECORD AS A STUDIO CHIEF AND SAYING HE TOOK CREDIT FOR OTHER PEOPLE'S SUCCESSES THOUGH MR DILLER HAS ASSIDUOUSLY AVOIDED PERSONAL ATTACKS ON MR REDSTONE THE QVC CAMP HAS RAISED QUESTIONS ABOUT WHETHER MR REDSTONE AND AN AFFILIATE ARTIFICIALLY INFLATED VIACOM STOCK BY PURCHASING SHARES PRIOR TO THE PARAMOUNT DEAL AN ISSUE THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING IN A STATEMENT YESTERDAY MR REDSTONE'S PRIVATE COMPANY NATIONAL AMUSEMENTS INC SAID ALL THE PURCHASES WERE FULLY DISCLOSED AND PROPER IF THE TWO MEN AGREE ON ONE THING IT IS THAT PARAMOUNT IS WELL WORTH THE HUGE PRICE EACH IS CONTEMPLATING OTHERS THOUGH AREN'T SO SURE MOST ANALYSTS PLACED BREAKUP VALUES ON PARAMOUNT OF BETWEEN 65 AND 78 FOR EACH OF ITS APPROXIMATELY 1195 MILLION SHARES OR 78 BILLION TO 93 BILLION THE PRICE THEY CALCULATED PARAMOUNT COULD FETCH IF ITS ASSETS WERE SOLD PIECEMEAL AND VIACOM'S ORIGINAL DEAL WITH PARAMOUNT VALUED IN SEPTEMBER AT 82 BILLION OR 6914 A SHARE WAS PRONOUNCED A FULL PRICE BY MOST OF THE ANALYSTS WHO FOLLOW THE COMPANY AS OF FRIDAY VIACOM'S OFFER WAS VALUED AT 8027 PER SHARE JOHN MALONE PRESIDENT OF TELECOMMUNICATIONS INC WHO HAD HIS OWN TALKS WITH PARAMOUNT LAST SPRING HAD ESTIMATED THE COMPANY'S VALUE AT 75 A SHARE IN A DEPOSITION GIVEN IN PARAMOUNT'S COURT BATTLE WITH QVC MR MALONE ADMITTED THAT PARAMOUNT WAS A SCARCE ASSET AND THAT IN A BIDDING WAR IT MIGHT BRING A SUBSTANTIALLY HIGHER PRICE VERY MUCH LIKE A YOU KNOW VAN GOGH PAINTING HE SAID IN THE DEPOSITION IT'S DIFFICULT TO SAY WHAT THE MARKET WILL PAY FOR IT AT ANY GIVEN POINT IN TIME BECAUSE OF ITS SCARCITY OR RARITY UNDER MORE TRADITIONAL MEASURES HE ADDED ONE WOULD HAVE A HARD TIME PAYING MORE THAN 75 A SHARE FOR IT UNLESS ONE HAD IN MIND A SUBSTANTIAL AMOUNT OF INVENTION BASED ON THE ASSETS AND FOR ALL PARAMOUNT HAS TO OFFER IT STILL PRESENTS A HUGE CHALLENGE TO NEW OWNERS EARNINGS FOR THE SECOND QUARTER ANNOUNCED LAST WEEK FELL 55 THE WELLKNOWN PARAMOUNT MOVIE STUDIO REPORTED A LOSS AFTER WRITING OFF THREE MOVIES THAT FLOPPED INCLUDING SEARCHING FOR BOBBY FISCHER THE DROP SURPRISED ANALYSTS IF THE STOCK WASN'T BEING BUOYED BY THE TAKEOVER BATTLE IT WOULD HAVE TAKEN A PLUNGE ON THOSE EARNINGS SAYS ED HATCH AN ANALYST AT UBS SECURITIES INC IN NEW YORK IT REALLY REMINDS YOU OF THE VAGARIES OF THE ENTERTAINMENT BUSINESS BOTH VIACOM AND QVC MAINTAIN THAT THEIR ASSETS AND EXPERTISE COMBINED WITH PARAMOUNT WILL MAKE A RICH PURCHASE PRICE PAY OFF VIACOM ANALYSTS SAY CLEARLY HAS MORE STRATEGICALLY ATTRACTIVE ASSETS SUCH AS CABLE NETWORKS MTV AND NICKELODEON WHICH ALREADY HAVE GLOBAL AUDIENCES QVC BY CONTRAST HAS ONLY ITS HOMESHOPPING CHANNEL WHICH HAD 1992 REVENUE OF 107 BILLION AND REACHES 44 MILLION HOMES MUCH OF ITS ATTRACTIVENESS RESTS ON THE FACT THAT MR DILLER IS RUNNING IT MR DILLER CAN DO A LOT OF THINGS TO GET MORE OUT OF PARAMOUNT THAN VIACOM CAN BELIEVES MS REIF OF OPPENHEIMER IF GOD FORBID ANYTHING SHOULD HAPPEN TO HIM ALL THIS GOES POOF SHE ADDS THAT IN ANY CASE THE PRICES BEING BANDIED ABOUT BY BOTH SIDES ARE RIDICULOUS MUCH OF PARAMOUNT'S VALUE LIES IN WHAT MR REDSTONE OR MR DILLER WOULD DO WITH THE COMPANY'S RICH RESOURCES ITS MOVIE LIBRARY CONTAINS ABOUT 900 FILMS FROM SUCH CLASSICS AS WHITE CHRISTMAS AND HOLIDAY INN TO BEVERLY HILLS COP AND RAIDERS OF THE LOST ARK PARAMOUNT ALSO HAS A LIBRARY OF SOME 6100 EPISODES OF TV SERIES INCLUDING 255 EPISODES OF HAPPY DAYS AND 260 EPISODES OF CHEERS MORE SO THAN OTHER STUDIOS PARAMOUNT HAS ALSO BUILT FRANCHISES OVER THE PAST DECADE THAT IT CONTINUES TO MILK FOR SPINOFFS THE MOST PROFITABLE SO FAR IS STAR TREK WHICH HAS GENERATED MORE THAN 1 BILLION IN REVENUE FOR THE COMPANY YET WHILE OLD TITLES CAN BE SOLD AND EXPLOITED FOR YEARS TO COME PARAMOUNT CAN'T MINE ITS VAULTS FOREVER HOLLYWOOD IS OPENING NEW MARKETS IN ASIA AND SOUTH AND LATIN AMERICA TO SELL ITS TV SHOWS AND MOVIES AND THE PROMISE OF 500 CHANNELS IN THE US MEANS THERE WILL ALWAYS BE A NEED FOR SOCALLED LIBRARY PRODUCT BUT THE PRICES THE COMPANY CAN GET FOR OLDER TV SHOWS DECREASES OVER TIME AND AS THE RECENT MEDIOCRE PERFORMANCE OF PARAMOUNT'S ADDAMS FAMILY VALUES SHOWS RELYING ON SEQUELS AS MUCH AS PARAMOUNT DOES IS A RISKY STRATEGY EVEN CONSIDERING THEIR POTENTIAL AS PROGRAMMING FODDER FOR A ZILLIONCHANNEL CABLE SYSTEM SAYS A RECENT ISSUE OF DIGITAL MEDIA NEWSLETTER IT'S HARD TO SEE HOW 900 OLD MOVIES AND 6000 OLD TV SHOWS COULD PULL A PROFIT ESPECIALLY AFTER ONE SUBTRACTS THE COST OF DIGITIZING THESE ARCHIVES FOR ELECTRONIC DISTRIBUTION OVER AN INTERACTIVE TV NETWORK WHILE HANGING ITS HOPES ON MOVIES LIKE WAYNE'S WORLD 2 AND YET ANOTHER BEVERLY HILLS COP MOVIE PARAMOUNT HASN'T BEEN AS SUCCESSFUL IN CREATING A STEADY STREAM OF ORIGINAL FILMS CRITICS SAY PART OF THE PROBLEM HAS BEEN MANAGEMENT TURNOVER OVER THE PAST FOUR YEARS PARAMOUNT HAS HAD THREE DIFFERENT STUDIO HEADS BECAUSE IT TYPICALLY TAKES A NEW TEAM 18 MONTHS TO GET A FULL SLATE OF MOVIES INTO PRODUCTION THE TURNOVER HAS SLOWED PARAMOUNT'S MOVIE SCHEDULE QVC'S MR DILLER IS CONVINCED THAT BY BETTER MANAGING PARAMOUNT'S FORMIDABLE MOVIE AND TV PRODUCTION AND DISTRIBUTION ASSETS HE CAN DRAMATICALLY IMPROVE PROFITS BUT EVEN HIS MOST ARDENT ADMIRERS SAY THAT IT WILL TAKE A LONG TIME AND CONSIDERABLE INVESTMENT TO DO THAT GIVEN THE CONDITIONS IN THE ENTERTAINMENT INDUSTRY LIKE THE HIGH COSTS OF MAKING MARKETING AND ADVERTISING FILMS EVEN THE GREATEST GENIUS IN THE WORLD WOULD BE HARDPRESSED TO SIGNIFICANTLY INCREASE THE PROFITS OF THE PARAMOUNT STUDIO IN THE SHORT TERM SAYS HAL VOGEL A MERRILL LYNCH ANALYST AND THE AUTHOR OF ENTERTAINMENT INDUSTRY ECONOMICS MR DILLER HAS SAID HE WILL CHANGE THE WAY PARAMOUNT DOES BUSINESS INSTEAD OF CONCENTRATING ON FEWER HIGHPROFILE COSTLY FILMS FOR EXAMPLE HE WILL MAKE MORE FILMS AT A LOWER COST BUT EVEN THAT TAKES TIME AND MONEY AND FOR ALL MR DILLER'S PAST SUCCESS THERE IS NO GUARANTEE HE CAN REPEAT IT MR DILLER HAS ALSO SAID HE WILL SELL OFF ASSETS SUCH AS THEME PARKS AND TV STATIONS BUT IT ISN'T CLEAR THOSE ASSETS WOULD BRING A RICH ENOUGH PRICE TO HELP OFFSET ACQUISITION COSTS MR REDSTONE FOR HIS PART ENVISIONS RETAIL STORES SELLING MERCHANDISE BASED ON BOTH PARAMOUNT MOVIES AND VIACOM CHARACTERS AND USING VIACOM CHARACTERS LIKE NICKELODEON'S REN AND STIMPY IN PARAMOUNT THEME PARKS HE SEES A FUTURE IN WHICH VIACOM'S TWISTED MTV CHARACTERS BEAVIS AND BUTTHEAD WILL STAR IN PARAMOUNT MOVIES BUT MOST OF HIS IDEAS ARE DECIDEDLY LOWTECH HARDLY JUSTIFYING THE SIZE OF THE INVESTMENT BEING MULLED WHAT'S MORE BOTH SIDES SEEM TO BE FORGETTING SOMETHING IN THEIR GLAMOROUS HOLLYWOOD CHASE FOR ALL THEIR FOCUS ON ENTERTAINMENT STRATEGIES FULLY 38 OF PARAMOUNT'S PROFIT COMES FROM ITS MORE PROSAIC PUBLISHING AND INFORMATION OPERATIONS SUCH AS SCHOOL TEXTBOOKS AND MANUALS FOR ACCOUNTANTS AND OTHER PROFESSIONALS SOME MAJOR PORTIONS OF PARAMOUNT'S BUSINESSES ARE NOT BEING AFFECTED BY INTERACTIVITY AND THE INFORMATION SUPERHIGHWAY NOTES MR GERARD CHAIRMAN OF GERARD KLAUER MATTISON & CO AN INVESTMENT BANK IN NEW YORK WHAT YOU ARE PAYING FOR THESE OTHER BUSINESSES IS A LOT OF MONEY MR DILLER HAS SAID HE WILL EXPLOIT PARAMOUNT'S CONSUMER AND PROFESSIONAL TITLES ELECTRONICALLY POSSIBLY CREATING SHOPPING CHANNELS AND PROGRAMS BASED ON BETTY CROCKER COOKBOOKS BUT WHETHER SUCH IDEAS WILL YIELD PROFITS REMAINS TO BE SEEN AND AS DIGITAL MEDIA POINTS OUT NO ONE HAS YET BEEN ABLE TO FIGURE OUT A GRACEFUL TRANSITION TO THE ELECTRONIC BOOK' FORMAT MEANWHILE FOR BOTH QVC AND VIACOM THE SHOTGUN ALLIANCES THEY MADE WITH OUTSIDE INVESTORS TO RAISE CASH MAY PROVE TROUBLESOME AND EXPENSIVE LATER ON BELLSOUTH CORP FOR EXAMPLE AGREED TO INVEST 15 BILLION IN QVC'S BID IN RETURN FOR ABOUT A 14 STAKE INITIALLY THE REGIONAL PHONE COMPANY WANTED TO PUT UP AS MUCH AS 5 BILLION IN RETURN FOR A 50 STAKE IN PARAMOUNT THOUGH BELLSOUTH AGREED TO A LESSER ROLE QVC MAY ASK IT FOR MORE CASH NOW AND PEOPLE WHO KNOW BELLSOUTH'S HEADSTRONG CHAIRMAN JOHN CLENDENIN SAY HE MAY WANT MORE OF A SAY IN MANAGEMENT ISSUES INDEED ALL THE INVESTORS IN THE QVC AND PARAMOUNT BIDS MAY HAVE THEIR OWN AGENDA THAT INTERFERES WITH MANAGEMENT'S PLANS AND EACH OTHER DOWN THE ROAD QVC GOT ANOTHER 15 BILLION FROM COX ENTERPRISES INC COMCAST CORP AND ADVANCE PUBLICATIONS INC FOR QVC HAVING BOTH A CABLE PARTNER COX AND A TELEPHONE PARTNER MAY PORTEND CLASHES OVER HOW PARAMOUNT'S MOVIES AND TV SHOWS SHOULD BE DELIVERED TO THE HOME ADVANCE PUBLICATIONS MEANWHILE OWNS RANDOM HOUSE THE NATION'S LARGEST PUBLISHER AFTER ITS CHIEF RIVAL PARAMOUNT'S SIMON & SCHUSTER AND MAY WANT A SAY IN HOW THAT COMPANY IS RUN VIACOM MEANWHILE RECEIVED 18 BILLION FROM NYNEX CORP AND BLOCKBUSTER ENTERTAINMENT CORP AND IS SAID TO BE SEEKING MORE CASH FROM BOTH BLOCKBUSTER FOR ITS PART IS REPORTEDLY KEEN ON STRIKING A DEAL TO GET PARAMOUNT MOVIES EARLIER THAN IT ALREADY DOES FOR ITS VIDEO STORES WHICH MAY ANNOY PARAMOUNT'S OTHER CUSTOMERS NYNEX'S VIDEOONDEMAND PLANS MAY RUN AFOUL OF VIACOM'S OWN CABLE OPERATIONS BUT THE PARTNERS DO BRING BOTH VIACOM AND QVC THE ADVANTAGE OF CASH IN EXCHANGE FOR A MINORITY INVESTMENT IN THE PARAMOUNT DEAL THE PARTNERS MAKE THE HIGH PRICE TAG FOR PARAMOUNT EASIER TO SWALLOW FOR QVC WHICH HAS VIRTUALLY NO DEBT NOW A PURCHASE OF PARAMOUNT WOULD LEAVE IT WITH ABOUT 4 BILLION IN DEBT OR A DEBTTOCAPITAL RATIO OF ABOUT 386 ACCORDING TO A REPORT BY SG WARBURG & CO ANALYST LISBETH BARRON ITS CASH FLOW WOULD BE ENOUGH TO COVER INTEREST PAYMENTS ABOUT THREE TIMES OVER A MANAGEABLE RANGE MS BARRON SAYS AFTER A PURCHASE OF PARAMOUNT QVC'S STOCK WOULD PROBABLY FALL TO ABOUT 4083 A SHARE COMPARED WITH 4325 AT FRIDAY'S CLOSE VIACOM HOWEVER ALREADY HAS SIZABLE DEBT AND A PURCHASE OF PARAMOUNT WOULD BRING ITS TOTAL DEBT TO ALMOST 8 BILLION MS BARRON NOTES DEBT WOULD THUS BE 609 OF TOTAL CAPITAL AND CASH FLOW WOULD ONLY BE ENOUGH TO COVER INTEREST PAYMENTS ABOUT 25 TIMES OVER A FAR MORE RESTRICTIVE RATIO MS BARRON CALCULATES VIACOM B STOCK IF IT WINS PARAMOUNT WILL TRADE AT 33 A SHARE THAT'S WELL BELOW FRIDAY'S CLOSE OF 4625 ONE INDICATION THAT THE BIDDING HAS GOTTEN TOO HEADY FOR MOST IS THE FACT THAT NO OTHER BIDDER HAS EMERGED FOR THIS RARE PRIZE REPELLED AS MUCH BY THE BRUTAL TAKEOVER FIGHT AS BY THE PRICE COMPANIES WHO HAVE HELD TALKS WITH PARAMOUNT IN THE PAST HAVE STAYED OUT OF THIS FRAY INCLUDING FOREIGN MEDIA GIANTS SUCH AS PHILLIPS NV AND BERTELSMANN AG AND US COMPANIES SUCH AS CAPITAL CITIES/ABC INC AND TURNER BROADCASTING SYSTEM LARRY HAVERTY A MONEY MANAGER AT STATE STREET RESEARCH IN BOSTON SAYS HE UNLOADED HIS COMPANY'S PARAMOUNT STOCK AT 80 A SHARE THOUGH HE IS KEEPING QVC AND VIACOM SHARES BECAUSE BOTH COMPANIES HAVE EXCITING LONGERTERM PROSPECTS BUT OF THEIR CURRENT BIDDING WAR HE SAYS BOTH PARTIES ARE LEGALLY DRUNK AND THEY ARE ABOUT TO HAVE ONE MORE DRINK 9312200159 931220 WHO'S NEWS CBT CORP CBT CORP PADUCAH KY JOHN BURMAN 60 YEARS OLD WAS NAMED TO THE BOARD INCREASING MEMBERSHIP TO 19 MR BURMAN WAS A BOARD MEMBER OF PENNYRILE CITIZENS BANK & TRUST WHICH WAS RECENTLY ACQUIRED BY CBT 9312200158 931220 WHO'S NEWS US LONG DISTANCE CORP US LONG DISTANCE CORP SAN ANTONIO STEPHEN DEATON WAS NAMED CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT OF THIS REGIONAL LONGDISTANCE AND OPERATORSERVICES CONCERN MR DEATON 47 YEARS OLD WAS MOST RECENTLY SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT NPM CORP A DALLASBASED VENTURE CAPITAL FIRM HE SUCCEEDS MARK D BUCKNER WHO RESIGNED IN AUGUST 9312200157 931220 INTERNATIONAL CAMPAIGN TO SELL ACCORD WITH PLO TO ISRAELI PUBLIC STOPS AT CRITICAL TIME BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV SINCE ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION SIGNED A PACT GRANTING PALESTINIAN SELFRULE IN THE GAZA STRIP AND THE WEST BANK CITY OF JERICHO A STREAM OF ISRAELI OFFICIALS HAS VISITED THE US TO ADDRESS THE AMERICAN JEWISH COMMUNITY'S CONCERNS ABOUT THE ACCORD AT HOME HOWEVER THE CAMPAIGN TO DRUM UP SUPPORT AMONG THE ISRAELI PUBLIC HAS GROUND TO A HALT THE GOVERNMENT THINKS THAT IT'S ENOUGH TO SHOW BEAUTIFUL PICTURES OF ISRAELI PRIME MINISTER YITZHAK RABIN AND ISRAELI FOREIGN MINISTER SHIMON PERES ON THE WHITE HOUSE LAWN BUT THEY ARE VERY MISTAKEN SAYS EHUD SPRINZAK A POLITICAL SCIENCE PROFESSOR AT HEBREW UNIVERSITY IN JERUSALEM THEY HAVE TO MARKET THIS AGREEMENT TO THE ISRAELI PEOPLE THEY PUT ISRAEL'S BEST DIPLOMATS AND MILITARY OFFICERS TO WORK NEGOTIATING THE TERMS OF THE AGREEMENT WITH THE PLO BUT THEY HAVEN'T BOTHERED TO ASSEMBLE A TEAM TO COME UP WITH A STRATEGY TO SELL THE AGREEMENT TO THE ISRAELI PUBLIC THIS LACK IS PARTICULARLY GLARING NOW THAT THE ISRAELIS AND PALESTINIANS MISSED THE FIRST MAJOR MILESTONE OF THE PEACE ACCORD AND THIS WEEK POSTPONED THE BEGINNING OF THE ISRAELI ARMY'S PULLOUT FROM GAZA AND JERICHO FOR AT LEAST 10 DAYS IN ORDER TO RESOLVE THEIR DIFFERENCES REGARDING THE WITHDRAWAL AGREEMENT THE DELAY HAS RAISED THE QUESTION WHETHER THE AGREEMENT IS TOO VAGUE TO BE IMPLEMENTED IT CAME AS THE INITIAL EUPHORIA OVER THE AGREEMENT HAD ALREADY STARTED TO FADE IN THE WAKE OF ESCALATING VIOLENCE IN THE TERRITORIES ISRAELIS FAVOR THE ACCORD BY A RAZORTHIN MARGIN OF 48 TO 46 WITH THE REST UNDECIDED ACCORDING TO THE LATEST POLL AND THE MARGIN HAS BEEN NARROWING THE WANING ENTHUSIASM STEMS FROM MANY FACTORS AMONG THEM THE DETERIORATION IN SECURITY DOUBTS THAT THE PLO CAN CONTROL THE TERRITORIES AND A GENERAL LOSS OF FAITH AMONG MANY ISRAELIS THAT THINGS ARE TRULY GOING TO GET BETTER NONETHELESS THERE IS A GROWING SENSE EVEN AMONG THOSE WHO CONTINUE TO STRONGLY BACK THE AGREEMENT THAT MUCH OF THE BLAME FOR THE EROSION LIES WITH THE RABIN GOVERNMENT WHICH TOOK PUBLIC SUPPORT FOR GRANTED YITZHAK HERZOG A LAWYER AND THE CHAIRMAN OF THE RULING LABOR PARTY'S AMERICAN DESK AND STANLEY RINGLER THE DIRECTOR OF THE DESK REEL OFF A LIST OF PUBLIC RELATIONS EFFORTS THE GOVERNMENT HAS RECENTLY SPONSORED IN THE US BUT THE ISRAELI GOVERNMENT THE TWO MEN ACKNOWLEDGE HAS FALLEN SHORT WHEN IT COMES TO DOING THE SAME SORTS OF THINGS AT HOME BEFORE AND IMMEDIATELY AFTER THE SIGNING OF THE ACCORD THERE WAS A TREMENDOUS SURGE OF ACTIVITY AS THE PARTY MADE AN EFFORT TO EXPLAIN THE DEAL BUT THIS HAS WOUND DOWN TO ALMOST NOTHING SAYS MR RINGLER WHO ADDS THAT THE GOVERNMENT INTENDS TO MAKE A NEW EFFORT EPHRAIM SNEH A MEMBER OF PARLIAMENT WHO HAS TRAVELED TO THE US EXPLAINING THE GOVERNMENT'S CASE SAYS THEY DIDN'T START EARLY ENOUGH OR STATE CLEARLY ENOUGH TO THE ISRAELI PUBLIC THAT IMPLEMENTING THE AGREEMENT WOULD BE COMPLICATED AND PAINFUL WE ALLOWED PEOPLE'S EXPECTATIONS TO GET TOO HIGH BOTH ISRAELIS AND PALESTINIANS WANT TO SEE TANGIBLE CHANGES IN THEIR LIVES IMMEDIATELY BUT THAT'S IMPOSSIBLE MR SPRINZAK THE HEBREW UNIVERSITY PROFESSOR HAS COME UP WITH A STRATEGY HE'D LIKE TO SEE THE GOVERNMENT FOLLOW IT CALLS FOR MR RABIN TO PUT PRESSURE ON THE PLO TO WORK PUBLICLY AGAINST ISLAMIC FUNDAMENTALIST GROUPS WHO OPPOSE THE PEACE PROCESS TO ARREST EXTREMIST SETTLERS SUSPECTED OF PARTICIPATING IN THE RECENT KILLINGS OF PALESTINIANS AND TO ESTABLISH A DIALOGUE WITH THE MORE MODERATE SETTLERS WHO OPPOSE VIOLENCE BUT ARE FEARFUL ABOUT THEIR FUTURES YOU CAN LET AN EXCITED SHIMON PERES TELL THE WORLD THAT BORDERS ARE NO LONGER IMPORTANT AND IT WILL PLAY WELL IN THE INTERNATIONAL SYMPOSIUMS BUT ISRAELIS DON'T BUY IT SAYS MR SPRINZAK IF THEY FEEL THEIR GOVERNMENT IS ABANDONING EVERYTHING THEY'VE SAID IN THE PAST ABOUT SECURITY THEY ARE GOING TO ABANDON THIS GOVERNMENT THE LABOR PARTY'S MR RINGLER THINKS IT'S STILL NOT TOO LATE TO WIN BACK THE ISRAELI CENTER THOSE VOTERS WHO ARE SECURITYMINDED BUT NONIDEOLOGICAL REGARDING THE FUTURE OF THE WEST BANK AND GAZA AND WHOSE SUPPORT FOR THE ACCORD HAS FALLEN SHARPLY ONCE THE PULLOUT BEGINS THERE WILL BE A DRAMATIC CHANGE IN HOW THE POPULATION VIEWS THE AGREEMENT PREDICTS MR RINGLER THEN HE ADDS BUT IF WE MISS ANOTHER DEADLINE THERE IS GOING TO BE A CRISIS 9312200156 931220 CLOSED END FUNDS FRIDAY DECEMBER 17 1993 BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN CCHICAGO