DAYTON OHIO DURIRON CO SAID ITS CINCINNATIBASED AUTOMAX INC SUBSIDIARY REACHED AN ACCORD TO BUY THE VALVEACTUATOR BUSINESS OF MECAIR SPA OF MILAN ITALY VALVE ACTUATORS ARE DEVICES USED TO REMOTELY OPEN AND CLOSE VALVES IN VARIOUS PRODUCTION PROCESSES TERMS WERE NOT DISCLOSED THE ITALIAN COMPANY'S VALVEACTUATOR BUSINESS HAS ABOUT 9 MILLION IN ANNUAL SALES WHILE IN 1992 DURIRON HAD SALES OF APPROXIMATELY 300 MILLION 9312200154 931220 DANISH VEHICLE REGISTRATIONS COPENHAGEN NEWVEHICLE REGISTRATIONS IN DENMARK ROSE 42 IN NOVEMBER TO 9142 UNITS FROM 6444 UNITS IN NOVEMBER 1992 ACCORDING TO DANMARKS STATISTIK THE NATIONAL STATISTICS AGENCY ACCORDING TO THE AGENCY THE TOTAL FIGURES FOR 1993 NOT DUE UNTIL A MONTH FROM NOW WILL GIVE A FULL INDICATION OF WHETHER PRIVATE CONSUMPTION IS REALLY ON THE RISE IT IS STILL TOO EARLY TO EXTRAPOLATE A FULL PICTURE OF NEWCAR REGISTRATIONS EVEN THOUGH THESE FIGURES POINT IN THE RIGHT DIRECTION SAID AN OFFICIAL FROM THE STATISTICS AGENCY 9312200153 931220 INTERSTATE COMMERCE LEADERSHIP WASHINGTON PRESIDENT CLINTON DESIGNATED GAIL MCDONALD TO BE CHAIRWOMAN OF THE INTERSTATE COMMERCE COMMISSION AND SAID HE WILL NOMINATE LINDA J MORGAN A SENATE AIDE TO BE A COMMISSION MEMBER MS MCDONALD 49 YEARS OLD HAS BEEN ON THE COMMISSION SINCE 1990 AND IS THE ACTING CHAIRWOMAN MS MORGAN 41 IS GENERAL COUNSEL TO THE SENATE COMMERCE COMMITTEE THE INTERSTATE COMMERCE COMMISSION OVERSEES ECONOMIC REGULATION OF TRUCKS TRAINS AND OTHER VEHICLES OPERATING ACROSS STATE LINES 9312200152 931220 BUSINESS BRIEF HOWELL CORP SPECIAL CHARGE TO BE TAKEN BECAUSE OF LOSS IN LAWSUIT HOWELL CORP HOUSTON SAID IT EXPECTS TO TAKE A FOURTHQUARTER CHARGE OF ABOUT 13 MILLION AFTER LOSING A LAWSUIT INVOLVING A DISPUTE OVER THE DELIVERY OF CRUDE OIL HOWELL AN ENERGY COMPANY HAD NET INCOME IN THE 1992 FOURTH QUARTER OF 12 MILLION OR 25 CENTS A SHARE ON REVENUE OF 1347 MILLION THE COMPANY SAID IT HAS FILED MOTIONS ASKING A TEXAS STATE COURT TO OVERTURN THE AWARD IF THE JUDGE DOESN'T THE COMPANY SAID IT WILL APPEAL THE AWARD 9312200151 931220 MORGAN STANLEY PLANS A CLOSEDEND FUND SPECIALIZING IN AFRICA NEW YORK MORGAN STANLEY & CO SAID IT PLANS TO TAKE AN INVESTMENT EXPEDITION TO AFRICA LAUNCHING A CLOSEDEND FUND TO INVEST IN EQUITY AND SOVEREIGN DEBT ISSUES ON THE CONTINENT THE INVESTMENT BANKING FIRM WHICH HAS LAUNCHED ABOUT A DOZEN OTHER SINGLECOUNTRY OR GEOGRAPHICALLY TARGETED CLOSEDEND FUNDS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 46 MILLION SHARES OF MORGAN STANLEY AFRICA INVESTMENT FUND INC EXPECTED TO BE SOLD AT A MAXIMUM OF 15 A SHARE THERE ARE FEW IF ANY SUCH FUNDS CURRENTLY SPECIALIZING IN AFRICAN INVESTMENTS ACCORDING TO FUNDINDUSTRY OFFICIALS INITIALLY THE FILING SAID MORGAN STANLEY EXPECTS THE FUND WILL INVEST PRIMARILY IN SOUTH AFRICAN SECURITIES ONLY MAURITIUS MOROCCO AND SOUTH AFRICA HAVE APPROPRIATE CUSTODY ARRANGEMENTS THE FILING SAID BUT IT EXPECTS WITHIN A YEAR TO BE ABLE TO ADD SECURITIES IN BOTSWANA GHANA KENYA SWAZILAND TUNISIA ZAMBIA AND ZIMBABWE INVESTORS CAN EXPECT RISKS NOT TYPICALLY ASSOCIATED WITH INVESTING IN THE US THE FILING NOTED INCLUDING LIMITATIONS ON REPATRIATION OF INVESTMENTS SUBSTANTIALLY LESS LIQUIDITY MORE GOVERNMENTAL INVOLVEMENT IN THE ECONOMY AND SOCIAL AND POLITICAL UNCERTAINTIES IN ADDITION THE FUND WILL BE UNABLE TO INVEST IN MOST AFRICAN COUNTRIES UNTIL VARIOUS REGULATORY REQUIREMENTS ARE ESTABLISHED THAT COMPLY WITH SEC RULES MORGAN STANLEY NOTED THAT SECURITIES MARKETS IN AFRICA ARE SUBSTANTIALLY SMALLER LESS LIQUID AND MORE VOLATILE THAN IN INDUSTRIALIZED COUNTRIES IN ADDITION MANY AFRICAN COUNTRIES HAVE STRICT INVESTMENT RESTRICTIONS AND CONTROLS THE FUND INTENDS TO INVEST IN EQUITIES OF COMPANIES ORGANIZED IN OR TRADING IN AFRICA EQUITIES DENOMINATED IN AN AFRICAN CURRENCY TO FINANCE OPERATIONS THERE OR COMPANIES THAT DERIVE 50 OR MORE OF THEIR ANNUAL REVENUE FROM SALES IN AFRICA AS WELL AS SOVEREIGN DEBT 9312200150 931220 LETTERS TO THE EDITOR ON THE PRECIPICE OF A MORASS WILLIAM BENNETT'S DEC 10 EDITORIALPAGE ESSAY COMMUTER MASSACRE OUR WARNING WAS A COGENT ARGUMENT FOR THE NEED TO REINSTILL VIRTUE MORALITY AND RESPECT FOR EDUCATION IN OUR SOCIETY I AM SICKENED BY THE DAILY DISPLAY OF BRAZEN CONTEMPT FOR THE LAWS OF OUR COUNTRY AND THE LAWS OF NATURE UNFORTUNATELY AS MR BENNETT SO ELOQUENTLY DESCRIBES THIS HAS BECOME OUR STANDARD OF THE DAY A STANDARD THAT CONTINUES TO SINK WITH EVERY MURDER RAPE ABORTION AND HATE CRIME COMMITTED WHAT HAS HAPPENED TO THE DAYS WHEN THERE WERE EDUCATIONAL STANDARDS THAT WERE NOT LOWERED TO ASSUAGE SPECIAL INTEREST GROUPS WHEN PEOPLE CARED MORE ABOUT ARMING THEMSELVES WITH KNOWLEDGE AND INFORMATION THAN WITH MILITARY HARDWARE WHEN THERE WAS A HEALTHY RESPECT AMONG CHILDREN FOR THEIR ELDERS AND THE PRINCIPLES OF GOODNESS IT PAINS ME TO SAY IT BUT I BELIEVE THAT WE HAVE ALREADY WRITTEN OFF A GENERATION OR TWO OF OUR CHILDREN BECAUSE OF OUR NEGLECT OF WHAT IS RIGHT MORAL AND VIRTUOUS THANKS IN LARGE PART TO THE FREE LOVE DAYS OF THE 1960S WHEN ANYTHING WENT AND AUTHORITY WAS EVIL CHILDREN THINK IT'S PERMISSIBLE TO CALL WOMEN BITCHES TO ENGAGE IN ADULTEROUS AFFAIRS TO RIDICULE AND SUBVERT AUTHORITY BECAUSE WE THROUGH OUR SILENT ACCEPTANCE SAY IT IS WE ARE PRECARIOUSLY PERCHED ON THE PRECIPICE OF A MORASS UNLESS WE RECOGNIZE THAT THERE ARE UNIVERSAL TRUTHS AND STANDARDS TO WHICH ALL HUMANS ARE SUBJECT REGARDLESS OF RACE SEX OR RELIGION WE WILL LOSE CONTROL OF OUR FUTURE AND INEVITABLY SLIP INTO THAT MORASS THE NATIONAL OUTRAGE ABOUT COLIN FERGUSON'S KILLINGS IN THE COMMUTER TRAIN IS A CHARADE WE AMERICANS ARE NOT READY TO STOP PEOPLE FROM KILLING ONE ANOTHER WITH HANDGUNS THIS SLAUGHTER IN THE TRAIN WILL NOT CHANGE THAT NOR WILL THE NEXT EPISODES OR THOSE AFTER THAT AD NAUSEAM BUT IF WE EVER DO CHANGE OUR MINDS WE WILL DO THE ONE THING WE MUST TO STOP THE KILLING WE WILL TAKE THE HANDGUNS AWAY FROM ALL BUT THE POLICE AND THE MILITARY IF YOU ARE AMONG THOSE WHO BELIEVE WE WOULD ALL BE BETTER OFF WITHOUT HANDGUNS DON'T BE OPTIMISTIC THINK OF IT WE ARE NOT EVEN CONCERNED ENOUGH ABOUT DRUNK DRIVERS TO TAKE SERIOUS ACTION TO STOP THEM OUR LAWS TELL PEOPLE HOW MUCH THEY CAN DRINK AND STILL DRIVE THEY DON'T SAY THAT DRINKING ANYTHING ALCOHOLIC AND DRIVING IS ILLEGAL WHY THEN WOULD WE WANT TO DO ANYTHING EFFECTIVE ABOUT HANDGUNS SO GET READY FOR THE NEXT BLOODY HANDGUN SPECTACULARS DO WHAT YOU NEED TO DO TO SURVIVE GET A BULLETPROOF VEST BULLETPROOF CAR OR GET A BULLETPROOF CONSCIENCE LIKE MEMBERS OF CONGRESS OR LIKE THOSE OTHERS WHO JUSTIFY HANDGUNS BY SAYING IT'S OUR CONSTITUTIONAL RIGHT INCIDENTALLY I CAN'T FIND THE WORD HANDGUN IN OUR CONSTITUTION CAN YOU THE REASON THAT THE PUBLIC REACTION WAS VIRTUAL SILENCE REGARDING A 43 MILLION SETTLEMENT PAID TO THE MUGGER OF A 72YEAROLD MAN IS THAT WE HAVE BEEN BEATEN INTO SUBMISSION DIDN'T WE ALL WATCH A HOMELESS MAN WIN A MILLION DOLLAR SETTLEMENT FROM THE TRANSIT AUTHORITY BECAUSE IN A FAILED ATTEMPT AT SUICIDE BY THROWING HIMSELF IN FRONT OF A MOVING SUBWAY TRAIN HE CLAIMED THEIR NEGLIGENCE CAUSED HIS SUBSEQUENT PARALYSIS WEREN'T WE FORCED TO WATCH A TOWN IN NEW JERSEY SUBMIT TO THE ACLU'S CAUSE OF THE DAY A HOMELESS MAN WHO TOOK UP RESIDENCE IN THE TOWN LIBRARY THE PUBLIC HAS BEEN CUDGELED INTO SILENCE BECAUSE WE'VE REALIZED WE CAN'T WIN IDEOLOGICAL BATTLES IN A LEGAL SYSTEM HOSTILE TO LOGIC AND COMMON SENSE IN A SOCIETY WHERE HONEST HARDWORKING PEOPLE ARE SHOT ON THE RAILROAD AND BLUDGEONED IN THE COURTROOM NO WONDER WE'RE SILENT HOW SAD THAT THERE IS THE BELIEF THAT OUR SOCIETY NEEDS TO BE BLACKMAILED BY AN ASSUMPTION OF A HIGHER POWER TO BEHAVE IN A CONSIDERATE COMPASSIONATE AND INTELLIGENT MANNER TOWARD ONE ANOTHER WE SHOULD DO SO BECAUSE WE CARE ABOUT EACH OTHER IF SOME NEED TO BE BLACKMAILED INTO CARING THEY SHOULD BE TOLD THAT THE PEOPLE WE NEGLECT MAY HARM US LITERALLY AND SURELY AS IS SO VERY EVIDENT ALREADY WILL CAUSE THE FABRIC OF OUR COMMUNITIES TO FRAY IF GOD DOES NOT EXIST EVERYTHING IS PERMISSIBLE AND SO IT IS EVERYTHING BAD AND EVERYTHING GOOD IT IS NOT DIFFICULT TO SHARE MR BENNETT'S OUTRAGE AT THE HIDEOUS EVENTS ON THE LONG ISLAND RAILROAD THIS TYPE OF SENSELESS TRAGEDY LAYS YET ANOTHER LAYER OF SADNESS ON AN AMERICAN CITIZENRY ALREADY WEARY AND INCREASINGLY NUMB TO THE DESECRATION OF HUMAN LIFE HIS RESPONSE TO THIS WITH AN APPEAL FOR AN INCREASED MORALITY IN OUR SOCIETY IS ONE I AGREE WITH AS ANOTHER SPIRITUAL PERSON HOWEVER I DISAGREE WITH HIS EXAMPLES AND IN PART WITH HIS CONCLUSIONS MR BENNETT CRITICIZES RACISM IN AMERICA IT IS BECOMING A LARGER AND MORE APPARENT PROBLEM AS THE FACE OF OUR POPULATION CHANGES COLOR AND EVOLVES THIS IS A GROWING AND VITAL COUNTRY AND THOSE WHO RESIST THESE INEVITABLE CHANGES ARE LIVING IN ANOTHER TIME TO SAY THAT WE ARE NOT IN DANGER OF BECOMING A THIRD WORLD COUNTRY BECAUSE WE ARE TOO RICH TOO PROUD AND TOO STRONG IS NOT ONLY BLATANTLY ETHNOCENTRIC BUT EXTREMELY NAIVE THOSE ARE ADMIRABLE QUALITIES BUT THEY ARE NOT EXCLUSIVE BENEFITS OF US CITIZENSHIP IN SHOWING THE DECAY THAT IS OVERTAKING OUR COUNTRY HE INCLUDES SINGLE PARENTS AND ILLEGITIMATE CHILDREN ALONG WITH THE TREMENDOUS INCREASE IN VIOLENT CRIMES TEENAGE SUICIDE AND DROP IN SAT SCORES WHAT IS THE POINT MR BENNETT THIS APPROACH SO COMMON IN CONSERVATIVE RELIGIOUS CIRCLES OF BLAMING LIFESTYLE AND UNFORTUNATE SOCIAL CIRCUMSTANCES WITH THE DEMISE OF CIVILIZATION IS DIVISIVE AND PROVIDES NO HEALING AT A TIME IT IS NEEDED MOST ALSO IS THERE A BETTER WORD THAN ILLEGITIMATE TO USE IN THIS CONTEXT I'M SURE WE ALL KNOW THE STIGMA ATTACHED TO THIS AND OTHER SIMILAR WORDS THESE ARE CHILDREN WITH NO SAYING THEIR FATES WHO DESERVE TO COME INTO THE WORLD WITH PRIDE AND A FIGHTING CHANCE AT HIGH SELFESTEEM I WRITE IN PRAISE OF MR BENNETT'S ESSAY THE SOLUTIONS HE SUGGESTS FOR DEALING WITH THE SOCIAL PROBLEMS NOW GRAVELY ENDANGERING OUR COUNTRY AND ESPECIALLY OUR YOUTH ARE EMINENTLY SENSIBLE BUT I AM SURE MR BENNETT WOULD AGREE THAT LEADING OUR YOUNG PEOPLE FROM THE VACUITY OF WAYNE'S WORLD TO THE DEMANDS OF THE DECALOGUE WILL NOT COME EASILY OR SWIFTLY MOREOVER THE TRANSITION CANNOT BE MADE WITHOUT SOME NECESSARY PRELIMINARY MEASURES THE PROBLEM IS ONTOLOGICAL AS WELL AS SPIRITUAL THE REPAIRS NEEDED ARE INTELLECTUAL AS WELL AS MORAL WE ARE NOT LIKELY TO GET OUR YOUNG PEOPLE TO ACT RIGHT UNLESS WE FIRST GET THEM TO THINK STRAIGHT THE TRAIN OF FAITH SO TO SPEAK RIDES ON THE RAILS OF RIGHT REASON REASON UNDERGIRDS RELIGIOUS FAITH WE DON'T CHECK OUR THOUGHT PROCESSES AT THE DOOR WHEN WE ENTER CHURCH WE USE THEM IN THE GREATEST EXPERIMENT IN THINKING POSSIBLE WHILE IT IS TRUE THAT SOME RELIGIOUS TRUTHS EXCEED OUR HUMAN CAPACITY TO UNDERSTAND THEM FULLY RELIGIOUS TRUTHS ARE NOT CONTRARY TO REASON AS ST THOMAS AQUINAS THE GREAT RECONCILER OF FAITH AND REASON SHOWED US IN HIS SUMA THEOLOGICA HOW THEN DO WE SOW THE FALLOW SOIL OF YOUTHFUL MINDS TO YIELD A STRONG HEALTHY GROWTH IN RELIGIOUS VIRTUE WE TEACH ARISTOTLE THE PHILOSOPHER WHOSE GREAT COMMONSENSE OBSERVANCES ABOUT THE HUMAN PERSON AND THE WORLD WE LIVE IN REMAIN VALID EVEN TODAY AND ARE TEACHABLE IN WHOLE OR IN PART TO EVERYONE CF MORTIMER ADLER'S ARISTOTLE FOR EVERYBODY A BROAD RATIONAL UNDERSTANDING OF REALITY WHAT OCCUPIES IT HOW BEINGS ARE CONSTITUTED HOW THE WORLD WORKS IN THE PHILOSOPHICAL SENSE IS A PREREQUISITE TO A MEANINGFUL STUDY AND ACCEPTANCE OF RELIGIOUS TRUTHS IF WE ERR IN OUR BASIC PERCEPTION OF OURSELVES AND THE WORLD AROUND US OUR RELIGIOUS FAITH WILL REST ON A SHAKY FOUNDATION WHAT IS MORE I FIND IN MY OWN EXPERIENCE WITH YOUNG PEOPLE THAT THEY NOT ONLY NEED THIS INTELLECTUAL UNDERGIRDING TO THEIR FAITH THEY ACTUALLY WANT IT ANY SERIOUS ATTEMPT TO GET THINGS BACK ON TRACK TO GET OUR YOUTH TO EMBRACE A VIRTUOUS LIFE MUST BEGIN AS MR BENNETT HIMSELF OBSERVED WITH THAT MOST RUDIMENTARY OF ALL QUESTIONS WHAT IS MAN THE LIGHT THAT REASON SHEDS ON THAT QUESTION WILL ULTIMATELY LEAD US TO THE TRUTH OF FAITH AND WITH GOD'S GRACE THAT TRUTH WILL LEAD US BACK TO THE PATH OF VIRTUE THAT MR BENNETT RIGHTLY WANTS US TO RECLAIM FOR OURSELVES AND OUR CHILDREN 9312200149 931220 POLITICS & POLICY PENTAGON TO TRIM BUDGET BY 4 BILLION ON TOP OF 5YEAR 30 BILLION SHORTFALL BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE PENTAGON HAS INSTRUCTED THE ARMED SERVICES TO CUT ABOUT 4 BILLION FROM THEIR PROPOSED FISCAL 1995 BUDGETS ACCORDING TO PENTAGON OFFICIALS THOSE CUTS COME ON TOP OF THE ESTIMATED 30 BILLION SHORTFALL IN THE CLINTON ADMINISTRATION'S PLANNED DEFENSE BUDGET FOR THE NEXT FIVE YEARS BUT BEFORE THE LONGTERM PROBLEM CAN BE ADDRESSED AND THE DECISION ON HOW TO DO SO MUST COME FROM THE PRESIDENT WHO WAS BRIEFED FRIDAY THE ARMED SERVICES MUST TRIM SOME WEAPONS PROGRAMS AND CONSTRUCTION PROJECTS TO MEET THE CURRENT TARGETS FOR THE FISCAL 1995 BUDGET AFTER THE IMMEDIATE PROBLEM HAS BEEN SOLVED THE SERVICES CAN EXPECT A SECOND ROUND OF CUTS NEXT MONTH TO DEAL WITH THE 30 BILLION SHORTFALL THAT ROUND WHICH IS EXPECTED TO COME MAINLY FROM ACQUISITION BUDGETS IS ALMOST CERTAIN TO HAVE A HEAVY IMPACT ON THE DEFENSE INDUSTRY ASKED ABOUT THE DEFENSE BUDGET PROBLEM TREASURY SECRETARY LLOYD BENTSEN SAID YESTERDAY ON NBCTV'S MEET THE PRESS THAT HE EXPECTS SOME DELAY IN WEAPONS PURCHASING SOME OF THE MOST EXPENSIVE ITEMS THOSE AROUND WHICH THE SERVICES BUILD THEIR IDENTITIES PROBABLY WILL BE PROTECTED TO ENSURE THAT ITS NEW AIRCRAFT CARRIER ISN'T DELAYED THE NAVY IS CONTEMPLATING BIG PERSONNEL CUTS AND MAJOR INFRASTRUCTURE REDUCTIONS SIMILARLY THE AIR FORCE WOULD PREFER TO SACRIFICE AN OVERSEAS BASE RATHER THAN LOSE OR POSTPONE ITS NEW F22 FIGHTER THE 30 BILLION FIGURE REFLECTS THE ADMINISTRATION'S REVISED ESTIMATE THAT INFLATION AND PAY RAISES WILL BOOST THE DEFENSE BUDGETS OVER THE NEXT FIVE YEARS BY THAT AMOUNT THE ADMINISTRATION HAS DECIDED TO INCREASE DEFENSE SPENDING SOMEWHAT BUT NOT BY ENOUGH TO COVER THE ENTIRE SHORTFALL EVERY DOLLAR THAT MR CLINTON GRANTS THE PENTAGON IS A DOLLAR LESS FOR ONE OF HIS PET DOMESTIC PROGRAMS THE REASON IS THAT CONGRESS HAS SET AN INFLEXIBLE CEILING ON TOTAL SPENDING FOR DEFENSE FOREIGN AID AND DOMESTIC SPENDING OTHER THAN GOVERNMENT BENEFITS THERE WILL BE GIVE ON BOTH SIDES MR BENTSEN ASSERTED YESTERDAY THE NEW PENTAGON REDUCTIONS WOULD BE PART OF A LARGER PACKAGE OF BUDGET CUTS BEING PREPARED BY THE WHITE HOUSE THAT PACKAGE PROBABLY WILL INCLUDE NEARLY ALL THE SPECIFIC SPENDING CUTS PROPOSED THIS FALL BY REPS TIMOTHY PENNY D MINN AND JOHN KASICH R OHIO ON TOP OF THAT ACCORDING TO ONE MEMBER OF THE CABINET THE WHITE HOUSE IS LOOKING FOR SOME HIGHPROFILE PERHAPS UNANTICIPATED SPENDINGCUT PROPOSALS TO HELP PERSUADE THE PUBLIC THAT PRESIDENT CLINTON IS SERIOUS ABOUT RESTRAINING FEDERAL SPENDING IN ADDITION TO THE ACQUISITION CUTS NOW BEING CONTEMPLATED SOME LONGTERM DEFENSE SAVINGS MAY BE ACHIEVED THROUGH CUTS IN THE MILITARY INFRASTRUCTURE A SENIOR PENTAGON OFFICIAL SAID DEFENSE SECRETARY LES ASPIN WAS TOLD BY HIS STAFF THIS FALL THAT 15 BILLION COULD BE SAVED THROUGH A TWOYEAR FREEZE ON MILITARY CONSTRUCTION WHILE 45 BILLION COULD BE REALIZED THROUGH A SIMILAR FREEZE ON ENVIRONMENTAL CLEANUP WORK AT CURRENT AND FORMER MILITARY INSTALLATIONS THE ONE AREA THE ARMED SERVICES HAS SPECIFICALLY BEEN TOLD NOT TO TOUCH INVOLVES SPENDING THAT AFFECTS MILITARY READINESS SUCH AS TRAINING SPARE PARTS AND FUEL FOR STEAMING AND FLYING NATIONAL SECURITY ADVISER ANTHONY LAKE TOLD REPORTERS AT THE PENTAGON FRIDAY THAT PRESIDENT CLINTON REMAINS COMMITTED TO MAINTAINING THE READINESS OF OUR ARMED FORCES MR LAKE ALSO REITERATED THE PRESIDENT'S SUPPORT FOR THE FORCE STRUCTURE PRESCRIBED BY MR ASPIN'S BOTTOMUP REVIEW OF HOW TO RESHAPE THE MILITARY TO FIT THE POSTCOLD WAR WORLD IF THE SIZE AND READINESS OF THE MILITARY CAN'T BE TOUCHED THEN MOST DEFENSE SAVINGS MUST BE FOUND IN ACQUISITIONS PRESIDENT CLINTON WAS PRESENTED WITH OPTIONS FOR CUTTING THE DEFENSE BUDGET IN A NEARLY TWOHOUR MEETING FRIDAY HE WILL DECIDE HOW TO ADDRESS THE SHORTFALL SOMETIME IN THE NEXT FEW WEEKS PERHAPS EVEN BY CHRISTMAS A WHITE HOUSE OFFICIAL SAID BUT WHILE MR CLINTON WRESTLES WITH DEFENSE CUTS OTHER PARTS OF THE GOVERNMENT ARE ASKING FOR MORE MONEY IN ANOTHER FRIDAY MEETING SECRETARY OF STATE WARREN CHRISTOPHER MADE HIS CASE FOR A LARGER SHARE OF THE BUDGET PIE THE WHITE HOUSE BUDGET OFFICE ALLOTTED 196 BILLION FOR THE 1995 FOREIGN AFFAIRS BUDGET WHICH INCLUDES BOTH FOREIGN AID AND OPERATING EXPENSES THAT'S NEARLY 4 BILLION LESS THAN THE 234 BILLION REQUESTED BY THE STATE DEPARTMENT SHOWING A RARE FLASH OF COLOR MR CHRISTOPHER ASSERTED THAT US DIPLOMATS ABROAD ARE ALREADY SACRIFICING A LOT NOTING THAT THERE IS NO INDOOR PLUMBING IN THE US EMBASSY IN KIEV UKRAINE AND EMPLOYEES ARE FORCED TO USE PORTABLE JOHNS THE FEDERAL JUDICIARY MEANWHILE IS LIKELY TO SEEK AN INCREASE IN ITS 27 BILLION BUDGET THOUGH SMALLER THAN THE 87 BOOST IT RECEIVED THIS YEAR THE COURTS' BUDGET REQUEST IS TRANSMITTED DIRECTLY TO CONGRESS BY THE WHITE HOUSE WITHOUT AMENDMENT TO THE CONSTERNATION OF THE WHITE HOUSE BUDGET OFFICE THE COURTS LAST YEAR SOUGHT A 22 INCREASE DAVID WESSEL AND CARLA ANNE ROBBINS CONTRIBUTED TO THIS ARTICLE 9312200148 931220 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT BANCO RIO DE LA PLATA SA 250 MILLION OF NEGOTIABLE OBLIGATION BONDS DUE DEC 15 2003 PRICED AS 875S AT 99845 TO YIELD 8773 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 299 BASIS POINTS ABOVE TREASURYS RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS PENNCORP FINANCIAL GROUP INC 150 MILLION OF SENIOR SUBORDINATED NOTES DUE DEC 15 2003 PRICED AT PAR TO YIELD 925 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLEB1 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC TRISM INC 100 MILLION OF SENIOR SUBORDINATED NOTES DUE DEC 15 2000 PRICED AT PAR TO YIELD 1075 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SMITH BARNEY SHEARSON INC THE OFFERING SERIES 1662 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE MATURITY OF 179 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 940 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING REMIC TRUST 1993G42 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 85 CERTIFICATES THE COLLATERAL HAS A WEIGHTED AVERAGE MATURITY OF 339 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 2667 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1993257 IS BACKED BY THE AGENCY'S REMIC 1993158 CLASS E SECURITIES OUTSTANDING WHICH IN TURN ARE BACKED BY FANNIE MAE'S 30YEAR 85 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 160 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993256 IS BACKED BY CLASSES FROM THE AGENCY'S REMICS OUTSTANDING WHICH IN TURN ARE BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 130 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1993258 IS BACKED BY CLASSES FROM THE AGENCY'S REMICS OUTSTANDING ALEXANDER HAAGEN PROPERTIES INC US 75 MILLION OF 75 CONVERTIBLE EUROBONDS DUE JAN 15 2001 AT ISSUE PRICE PAR VIA NATWEST SECURITIES LTD DEBENTURES CONVERTIBLE INTO ORDINARY COMPANY SHARES THROUGHOUT LIFE OF ISSUE AT CONVERSION PRICE 18 FLAT WITH SHARE PRICE AT INITIAL PUBLIC OFFERING OF SHARES DEBENTURES NONCALLABLE OVERALLOTMENT OPTION 1125 MILLION FEES 375 PAYABLE SEMIANNUALLY CITIBANK NA BRAZIL US PARENT 60 MILLION OF 8375 EUROBONDS DUE DEC 23 1996 AT ISSUE AND REOFFER PRICE 99934 VIA CITIBANK INTERNATIONAL PLC BONDS YIELD 84 A SPREAD OF 390 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES UNDISCLOSED PAYABLE SEMIANNUALLY EUROPEAN INVESTMENT BANK SUPRANATIONAL 50 BILLION YEN OF FLOATINGRATE EURONOTES DUE MAY 31 2000 AT ISSUE AND REOFFER PRICE 1087 VIA NIKKO EUROPE PLC PAYABLE SEMIANNUALLY AT SIXMONTH YEN LONDON INTERBANK OFFERED RATE PLUS 90 BASIS POINTS LAUNCHED OFF EUROMEDIUMTERM NOTE PROGRAM FEES UNDISCLOSED INTERAMERICAN DEVELOPMENT BANK SUPRANATIONAL 10 BILLION YEN OF FLOATINGRATE EURONOTES DUE DEC 29 1998 AT ISSUE AND REOFFER PRICE 1065 VIA NIKKO EUROPE PLC PAYABLE SEMIANNUALLY AT SIXMONTH YEN LIBOR PLUS 80 BASIS POINTS LAUNCHED OFF EUROMEDIUMTERM NOTE PROGRAM FOR STRUCTURAL OPERATIONS FEES UNDISCLOSED MITSUBISHI ESTATE CO JAPAN 10 BILLION YEN OF 255 EUROBONDS DUE JAN 27 1998 AT ISSUE AND REOFFER PRICE PAR VIA MITSUBISHI FINANCE INTERNATIONAL PLC BONDS YIELD 255 LAUNCHED OFF EUROMEDIUMTERM NOTE PROGRAM FEES 025 9312200147 931220 ENTERPRISE BY MICHAEL SELZ SMALL FIRMS FIND THAT FARMING OUT BUSINESS OPERATIONS HELPS TO ACCELERATE THEIR GROWTH TWOTHIRDS OF FASTGROWING SMALL COMPANIES HAVE HIRED OUTSIDERS TO HANDLE PREVIOUSLY INHOUSE FUNCTIONS SUCH AS MANUFACTURING MARKETING OR ADMINISTRATION ACCORDING TO A RECENT SURVEY OF 392 SUCH FIRMS BY COOPERS & LYBRAND A BIG ACCOUNTING FIRM AND 80 OF SURVEY RESPONDENTS SAID THIS SHIFT TO OUTSIDE CONTRACTORS HAS CONTRIBUTED SIGNIFICANTLY TO THEIR GROWTH DURING THE PAST YEAR SOCALLED OUTSOURCING CAN BE OF MAJOR BENEFIT TO ENTREPRENEURS BY SAVING MONEY AND SUPPLYING SPECIALIZED SKILLS SAYS DICK DOLE A COOPERS & LYBRAND VICE CHAIRMAN EARLIER THIS YEAR PCKWIK CORP USED OUTSOURCING TO LAUNCH ITS LARGEST DIRECTMARKETING CAMPAIGN SAYS BRUCE SCHAFER PRESIDENT AND FOUNDER OF THE BEAVERTON ORE SOFTWARE DEVELOPER MR SCHAFER SAYS OUTSIDERS HANDLED THE DESIGN PRINTING AND MAILING OF PROMOTIONAL MATERIAL PROCESSING OF ORDERS AND DUPLICATION OF FLOPPY DISKS BEARING THE FIRM'S PROGRAMS THE CAMPAIGN GENERATED ORDERS THAT ACCOUNT FOR HALF OF THE COMPANY'S MONTHLY REVENUE ACCORDING TO PCKWIK IT ESTIMATES 1993 REVENUE WILL BE 4 MILLION MORE OWNERS OF SMALL BUSINESSES ARE TURNING TO BARTERING TO FIGHT HIGHER HEALTHCARE COSTS BARTER EXCHANGES LONG HAVE ALLOWED SMALL FIRMS TO BUY AND SELL GOODS AND SERVICES WITH SOCALLED TRADE DOLLARS CREDITS THAT EXCHANGES USE AS A COMMON CURRENCY AMONG MEMBERS NOW SOME EXCHANGES INCREASINGLY PROMOTE THE BARTER OF HEALTHCARE SERVICES AT AMERICAN TRADE EXCHANGE INC A 650MEMBER BARTER EXCHANGE IN CLEVELAND HEALTHCARERELATED TRADING HAS GROWN 20 TO 25 ANNUALLY DURING THE PAST THREE YEARS SAYS TOM MCDOWELL THE EXCHANGE'S PRESIDENT THIS YEAR HE SAYS THE VALUE OF SUCH TRADING IS EXPECTED TO REACH ABOUT 80000 OF THE EXCHANGE'S 45 MILLION IN ACTIVITY WHILE HEALTHCARERELATED BARTERING HAS BEEN LIMITED LARGELY TO DENTAL AND OPTICAL CARE IT IS BECOMING AN ALTERNATIVE TO OFFERING EMPLOYEES HEALTHCARE BENEFITS SAYS ROB SEITZ HIS NEW ROCHELLE NY PUBLICRELATIONS FIRM BELONGS TO BARTER ADVANTAGE INC A 950MEMBER EXCHANGE IN NEW YORK HIS FIRM HAS BARTERED FOR ONLY ABOUT 2000 OF DENTAL CARE BUT PLANS TO USE BARTERING MORE BROADLY LARRY KAMINSKI COOWNER OF DARWIN FURNITURE LTD IN NEW YORK JOINED BARTER ADVANTAGE ABOUT A YEAR AGO AFTER HIS HEALTH INSURER RAISED THE FURNITURE RETAILER'S ANNUAL PREMIUM 15 SINCE SEPTEMBER MR KAMINSKI SAYS DARWIN HAS TRADED FOR 2000 OF DENTAL WORK EYE EXAMS GLASSES AND CONTACT LENSES DOROTHY SOMEKH WHOSE DORASUE BOUTIQUE ALSO BELONGS TO BARTER ADVANTAGE SAYS HER NEW YORK CLOTHING STORE TRADED FOR HER 1000 OF VISITS TO AN INTERNIST LAST YEAR AND 7000 IN COSMETIC DENTAL WORK THIS YEAR WITHOUT BARTERING I NEVER COULD HAVE AFFORDED TO DO THOSE THINGS SHE ADDS GREEN RETAILERS ARE DISCOVERING HOW HARD IT IS TO MOVE INTO THE BLACK SINCE 1991 ENVIRONMENTALLY MINDED ENTREPRENEURS HAVE OPENED MORE THAN 200 US STORES THAT SELL ONLY PLANETFRIENDLY PRODUCTS SUCH AS RECYCLED PAPER ENERGYEFFICIENT LIGHTING CLOTHING MADE OF PESTICIDEFREE COTTON AND CLEANING PRODUCTS MADE FROM VEGETABLES AND PLANTS ESTIMATES DAVID RIGGLE EDITOR OF IN BUSINESS AN ENVIRONMENTAL BUSINESS MAGAZINE IN EMMAUS PA CRAIG RONAI AN INDUSTRY CONSULTANT AND STORE OWNER IN ITHACA NY ESTIMATES THAT UP TO 7 OF SUCH STORES HAVE FAILED MANY OWNERS BELATEDLY LEARNED THAT BUSINESS SUCCESS REQUIRES MORE THAN A HEARTFELT CONCERN FOR ECOLOGY SOME MISTAKENLY THOUGHT CONSUMERS AUTOMATICALLY WOULD SHARE THEIR ENTHUSIASM FOR ENVIRONMENTAL GOODS AS A RESULT INDUSTRY WATCHERS SAY ENTREPRENEURS OFTEN TENDED TO UNDERESTIMATE THE CHALLENGE OF FUNDAMENTAL BUSINESS TASKS SUCH AS MARKETING UNFAMILIAR PRODUCTS THAT CAN COST 10 TO 20 MORE THAN CONVENTIONAL ONES A LOT OF THESE PEOPLE GOT INTO THIS ON PRINCIPLE BUT HAD NO BUSINESS OR RETAIL BACKGROUND SAYS KEVIN CONNELLY PUBLISHER OF NATURAL CONNECTION A NORTH BRATTLEBORO VT TRADE JOURNAL FOR SMALL RETAILERS OF ENVIRONMENTAL PRODUCTS LAST YEAR MR CONNELLY FORMED THE NATIONAL GREEN RETAILING ASSOCIATION TO HELP SUCH STORE OWNERS THE GROUP PLANS TO HAVE BIANNUAL MEETINGS ABOUT CONSUMER EDUCATION AND THE BUSINESS OF RETAILING SERVE AS A CLEARINGHOUSE FOR NEWPRODUCT INFORMATION AND INITIATE A GROUP PURCHASING PROGRAM BY LATE 1994 SUCH SERVICES UNDOUBTEDLY WOULD BE WELCOMED BY GREENSTORE OWNERS SUCH AS DAVID AND ANN JOHANSEN COOWNERS OF ENVIRO CARE A CARMEL CALIF RETAILER OF ORGANIC COTTON CLOTHING AND OTHER ENVIRONMENTALLY FRIENDLY ITEMS THE COUPLE WHOSE SON WAS BORN ON EARTH DAY 1990 SAY THEIR STORE ONLY TURNED ITS FIRST PROFIT IN NOVEMBER AFTER TWO YEARS OF OPERATION REVENUE SHOULD TOTAL ABOUT 180000 THIS YEAR THE JOHANSENS SAY THE COUPLE SAY THEY HAVE HAD TO BORROW 200000 MORE THAN TWICE WHAT THEY EXPECTED TO PROPERLY FUND THEIR STARTUP BUT LIKE MANY GREEN RETAILERS THE JOHANSENS SAY THEIR BUSINESS ACUMEN IS IMPROVING EARLIER THIS YEAR THEY MOVED TO A LARGER MORE VISIBLE LOCATION THAT QUADRUPLED THE STORE'S DAILY WALKIN TRAFFIC THEY ALSO BEGAN SELLING CLEANING PRODUCTS TO NEARBY HOTELS AND RESORTS THREE OF FOUR SMALL BUSINESSES ARE RESTRUCTURING THEIR OPERATIONS CONCLUDES WILSON LEARNING CORP A MINNEAPOLIS MANAGEMENT TRAINING AND DEVELOPMENT CONCERN AFTER DISCUSSIONS WITH ITS 1250 SMALLBUSINESS CLIENTS START YOUR OWN BUSINESS A TALK SHOW FOR ENTREPRENEURS WILL BEGIN AIRING IN JANUARY ON THE HOME ENTERTAINMENT NETWORK A CABLETELEVISION CHANNEL THAT REACHES 75 US MAJOR MARKETS 9312200146 931220 NORFOLK SOUTHERN SETS PILOT PROJECT DESIGNED TO FIGHT COAL DUST NORFOLK VA NORFOLK SOUTHERN CORP SAID IT AGREED TO PARTICIPATE IN A ONEYEAR PILOT PROJECT DESIGNED TO KEEP COAL FROM BLOWING OFF ITS HOPPER CARS IN TRANSIT A PAGE ONE STORY IN THE WALL STREET JOURNAL LAST OCTOBER DESCRIBED THE PROBLEM OF COALDUST EMISSIONS THAT HAS TRACKSIDE RESIDENTS IN VIRGINIA FUMING AT THE RAILROAD THE RAILROAD HOLDING COMPANY SAID IT WILL WORK WITH CONSOLIDATION COAL CO A UNIT OF CONSOL INC PITTSBURGH TO EXAMINE THE EFFECT OF VARIOUS LOAD SHAPES ON CREATION OF AIRBORNE COAL DUST IN ADDITION THE COMPANIES WILL TEST AT LEAST TWO DIFFERENT BONDING AGENTS TO TREAT THE SURFACE OF THE LOADED CARS CONSOLIDATION WILL BE RESPONSIBLE FOR IMPLEMENTING THE NEW LOADING PROCESS AND APPLICATION OF THE BONDING AGENTS NORFOLK SOUTHERN ESTIMATED THE COST OF THE PILOT PROJECT AT SEVERAL HUNDRED THOUSAND DOLLARS ELLIOT SCHEWEL A VIRGINIA STATE SENATOR WHO HEADS A COALDUST STUDY COMMITTEE SAID THE PILOT PROJECT IS A CLEAR INDICATION THAT THE RAILROAD AND THE COAL COMPANY HAVE BECOME SERIOUS ABOUT SOLVING THE PROBLEM THE ISSUE HAS BEEN UNDER SCRUTINY BY THE VIRGINIA LEGISLATURE WHICH HAS CONSIDERED REMEDIES AS EXTREME AS REQUIRING THE RAILROAD TO PUT COVERS OVER ALL ITS COALCARRYING FREIGHT CARS EARLIER THIS YEAR NORFOLK SOUTHERN BUILT A STATION NEAR BLUEFIELD WVA THAT SPRAYS WATER ON THE TOPS OF COAL TRAINS TO HOLD DOWN THE DUST JW FOX JR NORFOLK SOUTHERN'S ASSISTANT VICE PRESIDENT COAL MARKETING SAID THE COMPANY HAS TESTED MORE THAN 40 BINDING AGENTS UNDER LABORATORY CONDITIONS THE PILOT PROJECT WILL INVOLVE FIELD TESTS OF THE TWO OR MORE BINDING AGENTS THAT APPEAR BEST ABLE TO WITHSTAND THE STRESSES OF SETTLING PRECIPITATION TURBULENCE AND WIND EROSION DURING TRANSPORTATION 9312200145 931220 WHO'S NEWS KNAPE & VOGT MANUFACTURING CO KNAPE & VOGT MANUFACTURING CO GRAND RAPIDS MICH ALLEN E PERRY WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER EFFECTIVE JAN 1 SUCCEEDING RAYMOND E KNAPE WHO WILL REMAIN AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR PERRY 53 YEARS OLD WILL BE SUCCEEDED AS VICE PRESIDENT OF MANUFACTURING BY MICHAEL VAN ROOY WHO IS CURRENTLY DIRECTOR OF MANUFACTURING OPERATIONS SEPARATELY RICHARD C SIMKINS AND C WILLIAM BARKALOW WERE NAMED TO THE BOARD OF THE SHELVING AND FURNITURE MAKER MR SIMKINS 51 IS KNAPE & VOGT'S VICE PRESIDENT OF FINANCE SECRETARY AND TREASURER MR BARKALOW 46 WAS PRESIDENT AND CEO OF HIRSH CO WHICH WAS RECENTLY ACQUIRED BY KNAPE & VOGT 9312200144 931220 BUSINESS BRIEF GE'S DIRECTORS RAISE QUARTERLY DIVIDEND PROPOSE STOCK SPLIT FAIRFIELD CONN GENERAL ELECTRIC CO DIRECTORS RAISED THE QUARTERLY COMMONSTOCK DIVIDEND 14 AND PROPOSED A 2FOR1 STOCK SPLIT GE SAID IT INCREASED THE DIVIDEND TO 72 CENTS A SHARE FROM 63 CENTS A SHARE PAYABLE JAN 25 TO SHAREHOLDERS OF RECORD DEC 31 THE COMPANY SAID THE STOCKSPLIT PROPOSAL WOULD BE PRESENTED TO SHAREHOLDERS FOR APPROVAL AT GE'S SHAREHOLDER MEETING APRIL 27 TO BE ABLE TO ISSUE THE ADDITIONAL SHARES GE SAID ITS BOARD RECOMMENDED FOR APPROVAL AN INCREASE IN AUTHORIZED COMMON TO 22 BILLION SHARES FROM 11 BILLION SHARES GE HAS ABOUT 9265 MILLION SHARES OUTSTANDING IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY GE CLOSED AT 105125 UP 1625 A SHARE 9312200143 931220 TURKISH TRADE DEFICIT INCREASED IN OCTOBER ANKARA TURKEY'S FOREIGN TRADE DEFICIT WIDENED TO 900 MILLION IN OCTOBER FROM 500 MILLION A YEAR EARLIER THE STATE INSTITUTE OF STATISTICS SAID IN THE FIRST 10 MONTHS OF 1993 THE COUNTRY'S FOREIGN TRADE DEFICIT SWELLED TO 114 BILLION FROM 62 BILLION IN THE SAME PERIOD OF 1992 THE INSTITUTE SAID IN OCTOBER 1993 EXPORTS ROSE TO 14 BILLION FROM 13 BILLION A YEAR EARLIER IMPORTS CLIMBED TO 23 BILLION FROM 18 BILLION IN THE JANUARYOCTOBER PERIOD THIS YEAR EXPORTS ROSE TO 121 BILLION FROM 119 BILLION IN THE COMPARABLE PERIOD OF 1992 IMPORTS INCREASED TO 235 BILLION FROM 181 BILLION 9312200142 931220 TECHNOLOGY & HEALTH HEWLETT DEVELOPS MULTIMEDIA CHIP FOR WINDOWS NT BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL PALO ALTO CALIF HEWLETTPACKARD CO HAS DEVELOPED AN UNUSUAL MULTIMEDIA MICROCHIP THAT CAN RUN A MICROSOFT CORP OPERATING SYSTEM AND COULD HELP WIDEN HP'S APPEAL TO CORPORATE COMPUTER BUYERS A BIG SELLING POINT IS THAT THE CHIP WILL RUN MICROSOFT'S WINDOWS NT AN OPERATING SYSTEM THAT SOME ANALYSTS EXPECT TO BECOME DOMINANT IN SEVERAL YEARS PARTICULARLY FOR HEAVYDUTY COMPUTING TASKS UNTIL NOW CHIPS USED IN HP'S WORKSTATIONS A CLASS OF MACHINES MORE POWERFUL THAN PERSONAL COMPUTERS ONLY RAN HP'S OWN OPERATING SYSTEM OR THE UNIX SYSTEM HP SAID IT HASN'T COMMITTED TO OFFERING WINDOWS NT UNLIKE RIVALS DIGITAL EQUIPMENT CORP INTERNATIONAL BUSINESS MACHINES CORP AND SILICON GRAPHICS INC BUT HP HAS BEEN QUIETLY CONVERTING WINDOWS NT TO RUN ON ITS CHIPS IN CASE CUSTOMERS DEMAND IT IF IT TAKES OFF WE'LL BE THERE SAID JAN SILVERMAN HP'S MARKETING MANAGER FOR ADVANCED TECHNOLOGIES HP SAID ITS NEW CHIP ONE OF SEVERAL IT WILL ANNOUNCE TODAY IS FASTER THAN INTEL CORP'S FLAGSHIP PENTIUM CHIP IT WILL POWER A LINE OF HP WORKSTATIONS CODENAMED GECKO THAT HP EXPECTS TO SHIP NEXT MONTH AT STARTING PRICES UNDER 4000 CALLED THE PA7100LC THE CHIP ALSO CONTAINS CIRCUITRY TO LET DESKTOP COMPUTERS MANIPULATE VIDEO AND AUDIO DATA THAT CAPABILITY WHICH USUALLY REQUIRES COSTLY ACCESSORY CHIPS COULD LET CORPORATIONS USE DESKTOP COMPUTERS FOR TASKS LIKE VIDEO CONFERENCING HP'S LATEST CHIP TECHNOLOGY WILL HELP GIVE ITS WORKSTATIONS AND MIDRANGE COMPUTERS A BOOST AGAINST RIVALS LIKE DIGITAL AND SUN MICROSYSTEMS INC ANALYSTS SAID BUT WITHOUT WINDOWS NT AND THE SOFTWARE IT MAY INSPIRE CORPORATIONS AREN'T LIKELY TO ABANDON INTEL IN THE LOWER END OF THE MARKET THEY SAID THEY ARE NOT GOING TO PICK UP PEOPLE WHO HAVE A PC ON THEIR DESK SAID LINLEY GWENNAP EDITOR OF MICROPROCESSOR REPORT A CHIP NEWSLETTER THAT'S THE LIMITATION INTEL RETAINS A HUGE ADVANTAGE BECAUSE COMPUTERS USING ITS CHIPS RUN TENS OF THOUSANDS OF PROGRAMS WRITTEN FOR MICROSOFT'S OPERATING SYSTEMS INDEED HP LIKE MOST OF ITS WORKSTATION RIVALS STRADDLES THE FENCE BY ALSO SELLING PCS THAT USE INTEL'S CHIPS HP WILL ALSO DISCLOSE DETAILS OF AN EVEN FASTER CHIP FOR HIGHEND COMPUTERS MR SILVERMAN SAID ANALYSTS SAID HP'S STATEMENTS OF DIRECTION ARE IMPORTANT TO REASSURE CUSTOMERS THAT IT PLANS TO KEEP PACE IN THE COSTLY CHIPDEVELOPMENT BUSINESS IT IS SAYING 'WE ARE ON THE SAME TRACK THAT THE OTHER GUYS ARE' SAID ANDREW ALLISON EDITOR OF RISC MANAGEMENT AN INDUSTRY NEWSLETTER 9312200141 931220 BUSINESS BRIEF SCOTTS CO ACQUISITION OF GRACESIERRA FOR 120 MILLION COMPLETED SCOTTS CO MARYSVILLE OHIO SAID IT COMPLETED ITS ACQUISITION OF GRACESIERRA HORTICULTURAL PRODUCTS CO FROM WR GRACE & CO FOR 120 MILLION THE PREVIOUSLY REPORTED PURCHASE WAS FINANCED THROUGH BANK BORROWING AS A RESULT OF THE ACQUISITION SCOTTS SAID IT WILL BECOME THE WORLD'S LARGEST TURF AND HORTICULTURAL PRODUCTS COMPANY WITH 1993 SALES OF ABOUT 600 MILLION THE COMPANY SAID IT EXPECTS THE ACQUISITION TO ADD SIGNIFICANTLY TO FUTURE SALES GROWTH AND EARNINGS POTENTIAL AND TO MAKE A POSITIVE CONTRIBUTION TO 1994 OPERATING CASH FLOW GRACESIERRA IS A LEADING INTERNATIONAL PRODUCER AND MARKETER OF SPECIALTY FERTILIZERS AND RELATED PRODUCTS FOR NURSERIES GREENHOUSES GOLF COURSES AND CONSUMER MARKETS SCOTTS SAID GRACESIERRA'S WORLDWIDE SALES WILL BE ABOUT 115 MILLION FOR 1993 9312200140 931220 WHO'S NEWS KODAK GIVES FISHER OPTIONS TO PURCHASE 750000 OF ITS SHARES EXPERTS PLACE PACKAGE'S VALUE AT UP TO 17 MILLION SAY IT IS NOT UNUSUALLY HIGH BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL GEORGE FISHER EASTMAN KODAK CO'S NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS RECEIVED OPTIONS TO PURCHASE 750000 SHARES OF KODAK STOCK A PACKAGE WHOSE CURRENT VALUE IS STRONG AND COMPETITIVE BUT NOT OVERWHELMINGLY HIGH ACCORDING TO COMPENSATION CONSULTANTS MR FISHER HAS OPTIONS TO PURCHASE 742090 SHARES AT 5797 EACH AND 7910 SHARES AT 6319 EACH THE COMPANY SAID THE SHARES MAY BE PURCHASED IN 20 CUMULATIVE ANNUAL INCREMENTS BEGINNING IN NOVEMBER 1994 MR FISHER OFFICIALLY TOOK OFFICE DEC 1 KODAK CLOSED FRIDAY AT 5525 UP 1 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING COMPENSATION CONSULTANTS PUT A CURRENT VALUE OF MR FISHER'S PACKAGE AT BETWEEN ABOUT 13 MILLION AND 17 MILLION DEPENDING ON THE CRITERIA EACH USED IN THEIR OPTIONS PRICING MODEL THE OPTIONS HAVE VALUE ONLY TO THE EXTENT THAT KODAK'S STOCK PRICE GROWS BEYOND THE ESTABLISHED PURCHASE PRICES THE OPTIONS WERE ISSUED ON NOV 11 KODAK SAID THE AVERAGE PRICE PER SHARE THAT DAY WAS 6319 ALTHOUGH NEITHER THE CASH PORTION NOR THE OTHER TERMS OF MR FISHER'S PACKAGE WAS DISCLOSED THE OPTIONS ARE A STRONG FINANCIAL COMMITMENT FROM KODAK SAID BLAIR JONES A COMPENSATION CONSULTANT WITH SIBSON & CO WHO CURRENTLY VALUED THE PACKAGE AT ABOUT 17 MILLION IT'S NOT EXTRAORDINARILY HIGH IT'S RIGHT AT THE LEVEL FOR SOMEONE MOVING INTO A TURNAROUND SITUATION IT ISN'T KNOWN WHETHER MR FISHER WILL BE EXCLUDED FROM FUTURE OPTION GRANTS THAT'S THE KEY SAID ALAN JOHNSON OF JOHNSON ASSOCIATES INC IS THIS THE APPETIZER OR IS THERE MORE TO COME MR JOHNSON PUT THE OPTIONS PACKAGE AT ABOUT 126 MILLION A MORE THAN COMPETITIVE AWARD FOR A COMPANY LIKE KODAK SUSAN EICHEN OF WILLIAM M MERCER INC VALUED THE OPTIONS PACKAGE AT ABOUT 15 MILLION IT'S NOT AS HIGH AS ONE MIGHT HAVE THOUGHT BUT THE NUMBER OF SHARES IS VERY LARGE MR FISHER WAS ALSO GRANTED 20000 SHARES OF RESTRICTED STOCK AND HE MUST CONTINUE HIS EMPLOYMENT WITH KODAK FOR FIVE YEARS BEFORE THE SHARES CAN BE SOLD CONSULTANTS VALUED THAT BLOCK AT ABOUT 13 MILLION GIVEN THE STOCK'S AVERAGE PRICE OF 6319 ON NOV 11 THE DAY OF ISSUANCE IN A COMPANY NEWSLETTER KODAK ALSO SAID THAT MR FISHER ACQUIRED 107400 SHARES OF COMMON STOCK AT 6319 A SHARE IN NOVEMBER BEFORE OFFICIALLY TAKING OFFICE LAST YEAR AS CHAIRMAN OF MOTOROLA INC MR FISHER EARNED 15 MILLION IN SALARY AND BONUS AND EXERCISED STOCK OPTIONS WITH A NET REALIZED VALUE OF 37 MILLION HE ALSO HAD UNEXERCISED OPTIONS WORTH 64 MILLION 9312200139 931220 TELEDYNE UNIT PAYS GOVERNMENT WASHINGTON TELEDYNE INDUSTRIES INC PAID THE GOVERNMENT 275000 TO SETTLE CIVIL CLAIMS THAT ITS FIRTH STERLING DIVISION FAILED TO CONDUCT CERTAIN QUALITYCONTROL TESTS ON CLUSTERBOMB GRENADES THE JUSTICE DEPARTMENT ANNOUNCED THE TESTS WERE DONE AFTER THE TELEDYNE INC UNIT IN JUNE 1992 VOLUNTARILY DISCLOSED THE IRREGULARITIES AT THE COMPANY'S LA VERGNE TENN FACILITY ACCORDING TO FRANK HUNGER ASSISTANT ATTORNEY GENERAL OF THE CIVIL DIVISION THERE WERE NO PROBLEMS WITH THE GRENADES A DEPARTMENT STATEMENT SAID A GOVERNMENT REVIEW CONFIRMED THE INTERMITTENT OMISSION OF SEVERAL QUALITY CONTROL TESTS FROM 1989 THROUGH 1992 9312200138 931220 FABRICENTERS PLANS CLOSINGS HUDSON OHIO FABRICENTERS OF AMERICA INC SAID IT HIRED A LIQUIDATION CONSULTANT TO CLOSE AND LIQUIDATE ALL 41 OF ITS CARGO EXPRESS HOUSEWARES STORES LOCATED IN OHIO MICHIGAN AND PENNSYLVANIA CARGO EXPRESS A WHOLLY OWNED SUBSIDIARY OF FABRICENTERS HAS BEEN LISTED AS DISCONTINUED OPERATIONS BY THE COMPANY SINCE JAN 30 THE COMPANY SAID IT EXPECTS TO INCUR A ONETIME CHARGE ARISING FROM THE CLOSINGS BUT ADDED THAT IT DOESN'T KNOW THE AMOUNT YET FABRICENTERS OPERATES 668 RETAIL FABRIC STORES IN 36 STATES PRIMARILY UNDER THE NAME JOANN FABRICS 9312200137 931220 SPAIN'S VEHICLE OUTPUT FALLS MADRID SPAIN'S MOTORVEHICLE PRODUCTION FELL 78 IN NOVEMBER FROM A YEAR EARLIER THE SPANISH ASSOCIATION OF CAR MAKERS OR ANFAC SAID THE NUMBER OF VEHICLES MANUFACTURED IN NOVEMBER TOTALED 173288 ANFAC SAID THE NUMBER OF VEHICLES PRODUCED IN THE FIRST 11 MONTHS OF THE YEAR FELL 19 TO 1630000 FROM THE YEAR BEFORE NOVEMBER CAR PRODUCTION FELL 51 FROM A YEAR EARLIER TO 148233 AND 11MONTH OUTPUT DECLINED 18 TO 1390000 PRODUCTION OF INDUSTRIAL VEHICLES AND BUSES DROPPED 21 TO 25055 IN NOVEMBER 1993 FROM NOVEMBER 1992 AND PLUNGED 23 TO 239595 IN THE FIRST 11 MONTHS OF THE YEAR 9312200136 931220 INTERNATIONAL OLIVETTI SELLS TEKNECOMP STAKE MILAN ING C OLIVETTI & C SOLD A 235 STAKE IN INTEGRATED CIRCUITS COMPANY TEKNECOMP SPA FOR 720 LIRE 43 CENTS A SHARE THE TOTAL VALUE OF THE TRANSACTION WAS 1692 BILLION LIRE 10 MILLION THE PERSHARE PRICE OF 720 LIRE COMPARES WITH TEKNECOMP'S CLOSING PRICE FRIDAY OF 590 LIRE OLIVETTI A COMPUTER AND OFFICE EQUIPMENT COMPANY HAD PREVIOUSLY SAID IT INTENDED TO SELL THE STAKE TO A GROUP OF INDIVIDUAL AND INSTITUTIONAL INVESTORS UNDER ITALIAN LAW TEKNECOMP'S NEW HOLDERS MUST NOW MAKE A PUBLIC OFFERING TO ACQUIRE A MAJORITY INTEREST IN THE COMPANY 9312200135 931220 NASD TAKES ACTIONS AGAINST FIRMS TRADERS AGENCY DISCIPLINES SEVERAL CHARGED WITH VIOLATING SECURITIES RULES LAW BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED DISCIPLINARY ACTIONS AGAINST FIRMS AND INDIVIDUALS FOR ALLEGEDLY VIOLATING SECURITIES LAWS AND NASD RULES SMETEK VAN HORN & CORMACK INC HOUSTON AND PRINCIPAL PETER P SMETEK JR SUGAR LAND TEXAS WERE FINED 15000 JOINTLY AND SEVERALLY EACH RESPONSIBLE FOR THE FULL AMOUNT AND EACH SUSPENDED FROM UNDERWRITING PUBLIC OFFERINGS FOR 30 DAYS THEY NEITHER ADMITTED NOR DENIED CHARGES THAT THEY SOLD SECURITIES WHILE FAILING TO MAINTAIN MINIMUM NET CAPITAL AND FAILED TO FILE CERTAIN REPORTS SOVEREIGN ASSET MANAGEMENT INC DALLAS AND ASSOCIATED PERSON AUSTIN STARKE TAYLOR III WERE FINED 2500 JOINTLY AND SEVERALLY AND WERE SUSPENDED FOR FIVE DAYS THEY DIDN'T ADMIT OR DENY CHARGES OF SELLING SECURITIES WHILE NASD MEMBERSHIP WASN'T EFFECTIVE AND FAILING TO MAINTAIN REQUIRED MINIMUM NET CAPITAL MR TAYLOR PRESIDENT OF SOVEREIGN ASSET CALLED THE CHARGES A MISTAKE HE SAID HE AND HIS FIRM NEVER WERE NASD MEMBERS AND NEVER SOLD SECURITIES HE SAID HIS LAWYERS ARE NEGOTIATING WITH THE NASD TO HAVE THE CHARGES VOIDED US SECURITIES CLEARING CORP SAN DIEGO AND PRINCIPAL ANTHONY JAMES MIRANTI WERE FINED 55000 JOINTLY AND SEVERALLY AND MR MIRANTI WAS REQUIRED TO PAY 396846 IN RESTITUTION IN ACCOUNTS WHERE CUSTOMERS ALLEGEDLY WERE CHARGED EXCESSIVE PRICES THE FIRM WAS SUSPENDED FROM MAKING PRINCIPAL TRANSACTIONS FOR 90 DAYS AND MR MIRANTI WAS SUSPENDED FOR 90 DAYS THE ACTION HAS BEEN APPEALED TO THE SECURITIES AND EXCHANGE COMMISSION AND THE SANCTIONS AREN'T IN EFFECT PENDING CONSIDERATION OF THE APPEAL MR MIRANTI DENIED ANY WRONGDOING AND SAID ALL OF THE DISPUTED TRANSACTIONS WERE MADE IN GERMANY THROUGH A GERMAN BROKERDEALER AND AS SUCH US SECURITIES LAWS DON'T APPLY TO THEM THE NASD SHOULD READ THE SECURITIES ACT AND REALIZE THAT THEY DON'T APPLY TO FOREIGN TRANSACTIONS WITH FOREIGN INDIVIDUALS HE SAID FIRST INDEPENDENCE GROUP INC GARDEN CITY NY WAS FINED 308677 AND TWO EMPLOYEES WERE DISCIPLINED FOR ALLEGEDLY SELLING SECURITIES IN WHICH THE FIRM DIDN'T MAKE A MARKET AND FOR CHARGING EXCESSIVE MARKUPS AS WELL AS VIOLATING NASD REPORTING RULES THE SANCTIONS HAVE BEEN AFFIRMED BY THE SEC BUT HAVE BEEN APPEALED TO THE US SECOND CIRCUIT COURT OF APPEALS AS PART OF THE CASE PRINCIPAL FRANK PAUL GIRALDI EAST NORWICH NY WAS FINED 62000 AND BARRED IN A SUPERVISORY OR PRINCIPAL CAPACITY BROKER MARK STEVEN MILANA DIX HILLS NY ALSO WAS FINED 40000 AND BARRED IN A SUPERVISORY OR PRINCIPAL CAPACITY BOTH ARE PROHIBITED FROM MAINTAINING A PROPRIETARY INTEREST IN ANY NASD MEMBER OTHER THAN A NONCONTROLLING INTEREST IN A MEMBER WHOSE SHARES ARE PUBLICLY TRADED PACIFIC SOUTHERN SECURITIES INC DENVER AND PRINCIPAL GERALD M SCHECHTER ENGLEWOOD COLO WERE FINED 50000 JOINTLY AND SEVERALLY AND REQUIRED TO JOINTLY AND SEVERALLY PAY 124065 IN RESTITUTION TO PUBLIC CUSTOMERS MR SCHECHTER ALSO WAS FINED AN ADDITIONAL 50000 SUSPENDED FROM ACTIVITY FOR SIX MONTHS AND FOR TWO YEARS IN ANY PRINCIPAL OR SUPERVISORY CAPACITY BROKER WILLIAM P SNOW ARVADA COLO WAS FINED 50000 AND BARRED THE NASD CHARGED THE FIRM SOLD SECURITIES AT UNREASONABLE PRICES AND AT MARKUPS RANGING FROM 11 TO 89 OVER THE PREVAILING MARKET PRICE UNLESS OTHERWISE NOTED NONE OF THE FIRMS OR INDIVIDUALS DISCIPLINED COULD BE REACHED IMMEDIATELY OR HAD ANY COMMENT VF MINTON SECURITIES INC FORT WORTH TEXAS WAS DEBARRED FROM APPLYING FOR REINSTATEMENT OF ITS NASD MEMBERSHIP AND PRINCIPAL VERNON F MINTON WAS SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY PRINCIPAL CAPACITY FOR SIX MONTHS BROKER JOSEPH W BISHOP GRAPEVINE TEXAS WAS FINED 100000 AND BARRED THE NASD ALLEGED THE FIRM THROUGH MR BISHOP MADE UNAUTHORIZED PURCHASES OF STOCK IN CUSTOMER ACCOUNTS PROMISED CUSTOMERS THEY WOULD HAVE TO PAY FOR TRANSACTIONS ONLY IF THEY REALIZED A PROFIT AND FAILED TO COMPLY WITH A 90DAY FREEZE IMPOSED BY THEIR CLEARING FIRMS ON CUSTOMER ACCOUNTS LEW LIEBERBAUM & CO GARDEN CITY NY AND BROKER SEYMOUR S BURACK STATEN ISLAND NY WERE FINED 10000 JOINTLY AND SEVERALLY WITHOUT ADMITTING OR DENYING CHARGES THAT THEY FAILED TO EXERCISE PROPER SUPERVISION OVER A BROKER IT WAS AN ISOLATED INCIDENT AND SEYMOUR BURACK HASN'T BEEN WITH THE FIRM SINCE MARCH 1992 SAID JAY ISRAEL AN ATTORNEY REPRESENTING LIEBERBAUM MR BURACK WHO CONFIRMED THAT HE RESIGNED FROM THE BROKERAGE FIRM TWO YEARS AGO ALSO SAID THE NASD CHARGES WERE A THING OF THE PAST THAT WAS A LONG TIME AGO AND I'M NO LONGER ASSOCIATED WITH THE FIRM HE SAID INDIVIDUALS DISCIPLINED INCLUDED MELVYN EDWARD ALBIN MOUNT DORA FLA FINED 20000 AND BARRED THE ACTION HAS BEEN APPEALED TO THE SEC WILLIAM BERNARD ANDERSON III DALLAS FINED 20000 AND BARRED LINDEN D BARNETTE TUSCALOOSA ALA FINED 5000 AND SUSPENDED FOR TWO WEEKS WITHOUT ADMITTING OR DENYING CHARGES BRYAN GREGORY BLAKEMAN HOUSTON FINED 30000 AND BARRED ROBERT MURRAY BROOKE BOZEMAN MONT FINED 20000 AND BARRED ALSO ROY MICHIEL CAPSHAW KAUFMAN TEXAS FINED 20000 AND BARRED FRANK J CUSTABLE JR GLENDALE HEIGHTS ILL FINED 100000 AND BARRED SANCTIONS AFFIRMED BY THE SEC DANIEL GORDON DE WEERT MISSOULA MONT FINED 25000 AND BARRED JOHN WAYNE EZELL ARLINGTON TEXAS FINED 15000 SUSPENDED FOR 15 DAYS AND ORDERED TO DISGORGE 35077 HE DIDN'T ADMIT OR DENY ALLEGATIONS AN ATTORNEY FOR MR EZELL SAID HE HAS WITHDRAWN HIS OFFER OF SETTLEMENT AND WILL AWAIT ANY FURTHER ACTION BY THE NASD THE ATTORNEY SAID MR EZELL INTENDS TO LITIGATE THE ACTIONS AN NASD SPOKESMAN SAID THE REQUEST TO WITHDRAW THE SETTLEMENT WILL LIKELY BE HONORED JOHN P GOLDSWORTHY METAIRIE LA FINED 5000 AND SUSPENDED FOR 15 BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS HAROLD W GORDEN CASTLE ROCK COLO FINED 75000 AND SUSPENDED FOR 60 DAYS CONCLUDING JAN 6 BERNARD J HARTKEN III ERIE PA FINED 25000 AND SUSPENDED FOR ONE MONTH WITHOUT ADMITTING OR DENYING ALLEGATIONS EDWIN H HAW JR CHICAGO FINED 57000 AND BARRED BOBBY RICHARD HSIA LENEXA KAN FINED 10000 AND SUSPENDED FOR TWO WEEKS WITHOUT ADMITTING OR DENYING ALLEGATIONS STEPHEN FARRELL ISSERMAN MONROE CITY MO FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ALA JASIM KADHIM FORT WORTH TEXAS FINED 100000 BARRED AND REQUIRED TO PAY 26320 IN RESTITUTION JOHN A MALACH ROCHESTER NY FINED 20000 AND BARRED SANCTIONS AFFIRMED BY THE SEC WILLIAM R MCCARTY JR NASHVILLE TENN FINED 60000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ANDREW J MCGOWAN SEWAREN NJ FINED 15000 AND SUSPENDED FOR THREE YEARS WITHOUT ADMITTING OR DENYING ALLEGATIONS WILLIAM LOUIS MORGAN DANVILLE CALIF BARRED JAMES ANTHONY MORRILL SARATOGA SPRINGS NY FINED 10000 AND BARRED BUT REDUCED TO A THREEDAY SUSPENSION IF HE SATISFIES A 14278 ARBITRATION AWARD THE ACTION HAS BEEN APPEALED TO THE SEC JAMES W RONECKER EL PASO TEXAS FINED 120000 BARRED AND REQUIRED TO PAY 83499 IN RESTITUTION JAMES RICHARD SAWYER VICTORIA TEXAS FINED 20000 AND BARRED CHARLES WILLIAM SCHMITZ DALLAS FINED 20000 AND BARRED JOHN ERIC SCHMITZ DALLAS FINED 5000 SUSPENDED FOR 14 DAYS AND SUSPENDED IN ANY PRINCIPAL CAPACITY FOR TWO YEARS WITHOUT ADMITTING OR DENYING ALLEGATIONS BERNARD L SMITH III OXFORD MISS FINED 200000 BARRED AND REQUIRED TO PAY 24 MILLION IN RESTITUTION WITHOUT ADMITTING ALLEGATIONS THAT HE SOLD SHARES IN AN UNREGISTERED MUTUAL FUND AND COVERTED 77000 OF CUSTOMER FUNDS TO HIS OWN USE MARGARET W STALNAKER ELKINS WEST VA FINED 45000 BARRED AND REQUIRED TO PAY 8835 IN RESTITUTION THOMAS JOHN STIENER UNION LAKE MICH FINED 8000 AND SUSPENDED FOR FIVE BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS AVERY DON TRUMBO DALLAS FINED 10000 BARRED AND ORDERED TO DISGORGE 46735 HE DIDN'T ADMIT OR DENY ALLEGATIONS INDIVIDUALS FINED INCLUDED MICHAEL J BISHOP MEMPHIS TENN 10000 WITHOUT ADMITTING OR DENYING ALLEGATIONS RANKIN R RAWLINGS MCCOMB MISS FINED 10000 WITHOUT ADMITTING OR DENYING ALLEGATIONS LEON WILLIAM SNEARLY JR ARLINGTON TEXAS FINED 10000 WITHOUT ADMITTING OR DENYING ALLEGATIONS STANFORD KENNETH SOKOLOFF STATEN ISLAND NY FINED 11262 AND JAMES IGOR WEISS NEW YORK FINED 2500 AND ORDERED TO DISGORGE 14280 WITHOUT ADMITTING OR DENYING ALLEGATIONS 9312200134 931220 BUSINESS BRIEF THQ INC SHARES LOSE HALF THEIR VALUE ON NEWS OF 4THQUARTER LOSS THQ INC CALABASAS CALIF SHARES LOST HALF THEIR VALUE ON NEWS THAT THE COMPANY WILL REPORT A LOSS IN ITS 1993 CALENDAR FOURTH QUARTER THE COMPANY HAD BEEN EXPECTED TO REPORT A PROFIT THQ SHARES CLOSED AT 1 OFF 1 FRIDAY IN NASDAQ STOCK MARKET TRADING THE COMPANY REPORTED NET INCOME OF 26 MILLION OR 11 CENTS A SHARE IN THE FINAL QUARTER OF 1992 BUT IN THE PAST TWO QUARTERS HAS REPORTED LOSSES OF 17 CENTS AND 10 CENTS A SHARE RESPECTIVELY THQ MAKES INTERACTIVE ENTERTAINMENT SOFTWARE AND DEVELOPS AND MARKETS TRADITIONAL TOYS AND GAMES 9312200133 931220 BUSINESS BRIEF GTE CORP AIRFONE UNIT IS EXPANDING SYSTEMS WITH MEXICAN FIRM A UNIT OF GTE CORP STAMFORD CONN IS EXPANDING ITS CONTINENTAL AIRTOGROUND PHONE SYSTEMS ANTICIPATING INCREASED TRAVEL IN THE WAKE OF THE NORTH AMERICAN FREE TRADE AGREEMENT GTE AIRFONE BASED IN OAK BROOK ILL SAID IT FORMED A JOINT VENTURE WITH MEXICAN TELECOMMUNICATIONS CONCERN TELEFONOS DE MEXICO TO OPERATE A NETWORK TO RECEIVE TELEPHONE SIGNALS FROM AIRFONEEQUIPPED AIRCRAFT PENDING REGULATORY APPROVAL GTE AIRFONE ALSO SAID IT IS UPGRADING ITS CANADIAN SYSTEMS FROM ANALOG TO DIGITAL SIGNALS UPGRADING THE QUALITY OF AIRTOGROUND CALLS AND PERMITTING ADDITIONAL FUNCTIONS 9312200132 931220 STONE CONTAINER SELLS 25 ON CANADIAN UNIT IN IPO CHICAGO STONE CONTAINER CORP SAID IT RAISED THE EQUIVALENT OF MORE THAN 500 MILLION BY SELLING 25 OF A CANADIAN UNIT IN AN INITIAL PUBLIC OFFERING STONE A MAKER OF PAPER AND PACKAGING PRODUCTS SAID THE SALE OF EQUITY IN THE MONTREALBASED UNIT RAISED 400 MILLION CANADIAN DOLLARS US300 MILLION TO C450 MILLION AN ADDITIONAL US225 MILLION WAS RAISED IN A DEBT OFFERING IN THE US THE SUBSIDIARY STONE CONSOLIDATED CORP MAKES NEWSPRINT AND SPECIALTY PAPER THE COMPANY SAID A LARGE PORTION OF THE PROCEEDS WILL BE USED TO PREPAY THE PARENT COMPANY'S BANK AMORTIZATION REQUIREMENTS COMING DUE IN MARCH AND SEPTEMBER 9312200131 931220 BRITISH GAS PLC SETS YEAR RESTRUCTURING OF CONSUMER BUSINESS SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH GAS PLC ANNOUNCED A RESTRUCTURING OF ITS DOMESTIC CONSUMER BUSINESS THAT FEATURES FIVE STANDALONE UNITS WITH A SIXTH UNIT TO OFFER COMMON SERVICES FOR TWO YEARS BRITISH GAS SAID THE NEW ALIGNMENT WILL REPLACE THE EXISTING 12REGION STRUCTURE OUR OBJECTIVE IS TO BECOME LEANER MORE COMPETITIVE AND MORE COMMERCIALLY FOCUSED SAID NORMAN BLACKER THE COMPANY'S BOARD MEMBER RESPONSIBLE FOR THE GAS BUSINESS MR BLACKER SAID THE CHANGES REPRESENT THE MOST FUNDAMENTAL CHANGES IN ORGANIZATION AND CULTURE IN OUR GAS BUSINESS FOR MORE THAN 40 YEARS AS A RESULT OF THE RESTRUCTURING BRITISH GAS NAMED SIX NEW MANAGING DIRECTORS HARRY MOULSON GAS TRANSPORTATION AND STORAGE MICHAEL ALEXANDER PUBLIC GAS SUPPLY LARGELY TO DOMESTIC CUSTOMERS SIMON KIRK CONTRACT TRADING LARGELY TO INDUSTRIAL AND COMMERCIAL CUSTOMERS DAVID WELLS SERVICING AND INSTALLATION DAVID BROOKS RETAILING AND PETER WALSH COMMON SERVICES THE COMPANY SAID THE NEW STRUCTURE WILL BE IMPLEMENTED IN MARCH 1994 AND WILL BE PHASED IN OVER TWO YEARS LIZ BUTLER AN ANALYST AT PANMURE GORDON & CO APPLAUDED THE MOVES SAYING THE RESTRUCTURING SHOULD HELP CLEAN OUT A COMPANY OVERLOADED WITH HIGHLY PAID EXECUTIVES NOTING THE NEW MANAGING DIRECTORS ARE IN THEIR 40S RATHER THAN AT THE END OF THEIR CAREERS SHE RECKONS THE COMPANY INTENDS TO CUT THE DEADWOOD OUT FLATTENING THE MANAGEMENT STRUCTURE MS BUTLER SAID THE CHANGES ARE PROBABLY A PRELIMINARY TO HORSETRADING BETWEEN A GOVERNMENT BENT ON EXPANDING COMPETITION AND A COMPANY TRYING TO MAINTAIN ITS LEADERSHIP ROLE UNDER PRESSURE FROM THE UK MONOPOLIES & MERGERS COMMISSION SHE SAID BRITISH GAS IS LIKELY TO BREAK UP ITS DOMESTIC MONOPOLY IN RETURN FOR BEING ALLOWED TO HAVE A PRESENCE IN ALL FACETS OF THE GAS BUSINESS FROM PULLING IT OUT OF THE NORTH SEA TO SELLING IT TO DOMESTIC AND INDUSTRIAL USERS SHE SAID BRITISH GAS IS COSTEFFICIENT BECAUSE IT'S IN THE BUSINESS FROM START TO FINISH AS LONG AS IT MAINTAINS THAT POSITION IT'S A POWERFUL COMPETITOR TO THE UK ELECTRICITY BUSINESS AS WELL AS IN EUROPE 9312200130 931220 WMS'S NICASTRO HAS ASSUMED ROLES AT A NUMBER OF HIGHFLYING CONCERNS BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL LOUIS J NICASTRO MAY BE A NEWCOMER TO THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC BUT HE IS NO STRANGER TO FINANCIAL CONTROVERSY MR NICASTRO THE 64YEAROLD CHAIRMAN OF WMS INDUSTRIES INC PLAYED A ROLE IN THE PARAMOUNT BATTLE BY BUYING SHARES IN VIACOM INC AT A TIME WHEN THE PURCHASES COULD HAVE HELPED BOLSTER THE VALUE OF VIACOM'S STOCKANDCASH BID FOR PARAMOUNT AGAINST A RIVAL OFFER BY QVC NETWORK INC MR NICASTRO HAS DENIED MAKING THE VIACOM PURCHASES AT THE BEHEST OF VIACOM CHAIRMAN SUMNER REDSTONE WHO OWNS 249 OF WMS AND MR REDSTONE HAS DENIED ANY KNOWLEDGE OF WMS'S SHARE PURCHASES THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING THE VIACOM STOCK BUYING RIGHT NOW WMS IS A HOT PROPERTY BASED ON ITS OWN CORNER OF THE ENTERTAINMENT BUSINESS THE STOCK OF CHICAGOBASED WMS FORMERLY WILLIAMS ELECTRONICS HAS SOARED MORE THAN 20FOLD SINCE EARLY 1991 BASED ON RISING EARNINGS FROM SALES OF THE PINBALL AND VIDEOARCADE GAMES IT MAKES INVESTORS ALSO SAY WMS CAN TRANSLATE ITS ARCADEGAME FRANCHISE INTO GROWTH IN CASINOGAMBLING MACHINES WMS ALREADY OWNS STAKES IN THREE HOTELCASINOS IN PUERTO RICO THEY ARE THE PREMIER MANUFACTURER AND DESIGNER OF VIDEO GAMES IN ARCADES SAID THOMAS RYAN WHO FOLLOWS THE ENTERTAINMENT AND GAMBLING INDUSTRIES FOR LADENBURG THALMANN & CO NOW THEY'RE GOING TO BE BRANCHING OUT INTO THE HOMEVIDEO GAME BUSINESS AND CASINOSLOT MACHINES THEY'RE COMING OUT WITH A VIDEO POKER MACHINE FOR EXAMPLE MR NICASTRO A GRADUATE OF COLUMBIA UNIVERSITY WHO MAINTAINS A RESIDENCE IN MILL NECK NY DIDN'T RETURN PHONE CALLS SEEKING COMMENT ABOUT THIS STORY MR NICASTRO HAS BEEN INVOLVED IN SEVERAL HIGHFLYING COMPANIES WHOSE STOCKS SOARED ONLY TO CRASH LATER HE MANAGED TO EXTRICATE WILLIAMS WHICH WAS ACQUIRED BY THE SEEBURG CORP JUKEBOX COMPANY IN 1964 FROM TWO COMPANIES COMMONWEALTH UNITED CORP AND XCOR INTERNATIONAL INC THAT ENCOUNTERED FINANCIAL DIFFICULTIES COMMONWEALTH WHICH HALTED PAYMENTS ON ITS DEBTS IN 1970 SOLD SEEBURG TO A COMPANY LED BY MR NICASTRO AS PART OF A DEBTRESTRUCTURING PLAN IN THE EARLY 1970S SEEBURG WHICH WAS RENAMED XCOR INTERNATIONAL IN 1977 SOUGHT BANKRUPTCYLAW PROTECTION FROM CREDITORS IN 1980 AFTER MAKING UNSUCCESSFUL ATTEMPTS TO ACQUIRE THE SCHENLEY LIQUOR BUSINESS ORGAN MAKER WURLITZER CO AND WORLD JAIALAI INC XCOR THEN SPUN OFF WILLIAMS ITS MOST PROFITABLE SUBSIDIARY WITH MR NICASTRO KEEPING CONTROL AS CHIEF EXECUTIVE OFFICER AMID CREDITORS' CHARGES FILED IN US BANKRUPTCY COURT THAT MR NICASTRO OBTAINED A LUXURY APARTMENT AND PORSCHE AUTO FROM THE COMPANY ON OVERLY FAVORABLE TERMS ANOTHER FORMER HIGHFLYER ON MR NICASTRO'S RESUME IS THE CASINO COMPANY PARVINDOHRMANN CO WHOSE CHAIRMAN DELBERT COLEMAN RESIGNED IN 1970 TO SETTLE STOCKMANIPULATION CHARGES THE SEC BROUGHT MR NICASTRO WAS ONE OF 21 INVESTORS WHO PARTICIPATED IN THE ACQUISITION IN 1969 OF A CONTROLLING POSITION IN PARVINDOHRMANN BY MR COLEMAN THE FORMER SEEBURG PRESIDENT WHO HAD BROUGHT MR NICASTRO IN TO RUN THAT COMPANY MR COLEMAN BROUGHT MR NICASTRO IN AS A PARVINDOHRMANN DIRECTOR WHEN HE BECAME CHAIRMAN THE SEC LATER CHARGED THAT MR COLEMAN AND OTHERS MANIPULATED THE STOCK WHICH ROSE IN PRICE FROM 38 A SHARE TO 141 A SHARE PARTLY BY BUYING LARGE BLOCKS AS THEY CAME ON THE MARKET THE STOCK PLUNGED AFTER DISCLOSURE ABOUT THE SEC INVESTIGATION THE BUYING OF VIACOM SHARES BY MR REDSTONE AND WMS HAS BEEN AN IMPORTANT ISSUE IN THE PARAMOUNT TAKEOVER BATTLE BECAUSE INVESTORS WERE USING THE STOCK PRICES OF BOTH VIACOM AND QVC TO VALUE THEIR COMPETING STOCKANDCASH BIDS FOR PARAMOUNT IN COURT PAPERS FILED IN CONNECTION WITH THE TAKEOVER BATTLE QVC HAS RAISED QUESTIONS ABOUT MR REDSTONE'S AGGRESSIVE BUYING OF VIACOM SHARES IN JULY AND AUGUST INDICATING IT COULD HAVE BOOSTED THE VALUE OF HIS PARAMOUNT BID WHICH WAS ANNOUNCED SEPT 12 THE WMS BUYING OF VIACOM STOCK WHICH OCCURRED BETWEEN LATE SEPTEMBER AND MIDOCTOBER COULD HAVE HAD THE SAME EFFECT QVC HASN'T PUBLICLY QUESTIONED THE PURCHASES BY WMS THE TIMING OF INVESTMENTS BY MR REDSTONE AND WMS EXECUTIVES IN EACH OTHER'S COMPANIES HAS RAISED QUESTIONS AMONG TRADERS ABOUT WHETHER THE TRADES WERE SOMEHOW LINKED FOR MUTUAL BENEFIT MR REDSTONE'S PURCHASES OF WMS STOCK PRECEDED HIS PUBLIC DISCLOSURE ON OCT 12 OF PLANS TO ACQUIRE MORE THAN 25 OF WMS HIS DISCLOSURE WHICH INCLUDED THE NEWS THAT HE HAD BOUGHT 281000 SHARES OF WMS CAUSED THE WMS STOCK PRICE WHICH ALREADY HAD BEEN RISING TO JUMP TO A 52WEEK HIGH ON THAT DAY BETWEEN OCT 14 AND 18 WMS'S PRESIDENT MR NICASTRO'S SON NEIL SOLD MOST OF HIS WMS HOLDINGS NEIL NICASTRO DIDN'T RETURN CALLS SEEKING COMMENT AROUND THE SAME TIME WMS LAUNCHED A THREEWEEK BUYING SPREE OF VIACOM STOCK THAT BOLSTERED VIACOM'S MARKET PRICE BETWEEN LATE SEPTEMBER AND MIDOCTOBER WHEN VIACOM AND QVC HAD MADE COMPETING TAKEOVER BIDS BASED LARGELY ON EACH COMPANY ISSUING MORE STOCK TO PAY FOR PARAMOUNT'S SHARES IN A STATEMENT VIACOM SAID THAT WMS HAD EXPRESSED INTEREST IN INVESTING 50 MILLION IN THE VIACOMPARAMOUNT MERGER BUT THAT VIACOM TOLD WMS IT WASN'T INTERESTED THE WMS BUYING OF VIACOM STOCK WAS APPARENTLY CONSISTENT WITH WMS'S EXPRESSED INTEREST IN INVESTING IN A VIACOM/PARAMOUNT COMBINATION VIACOM SAID VIACOM NOTED THAT MR REDSTONE HAS BEEN ACCUMULATING WMS STOCK OVER THE PAST 10 YEARS AND THAT HE HAD BEEN BUYING WMS STOCK IN SEVEN OF THE FIRST NINE MONTHS OF THE YEAR BUT VIACOM ADDED ASSUMPTIONS THAT MR REDSTONE CONTROLS OR HAS ANY INFLUENCE ON THE MANAGEMENT OF WMS ARE TOTALLY INACCURATE VIACOM ALSO REPEATED ITS EARLIER DEFENSE OF MR REDSTONE'S BUYING OF VIACOM SHARES SAYING THEY WERE PART OF A FULLY DISCLOSED SIXYEAR BUYING PROGRAM WMS IS CONTROVERSIAL OUTSIDE THE STOCKTRADING ARENA AS WELL ONE OF ITS MOST SUCCESSFUL ARCADE GAMES IS MORTAL KOMBAT WHOSE DEPICTIONS OF SEVERED HEADS AND OTHER GORE HAS BEEN CRITICIZED AS TOO VIOLENT FOR CHILDREN MAYBE IT IS BAD TASTE BUT IT SELLS A LOT OF MACHINES SAYS MR RYAN JOHN TAYLOR AN ELECTRONIC ENTERTAINMENT INDUSTRY ANALYST AT LH ALTON & CO IN SAN FRANCISCO EXPECTS WMS'S PROFIT TO RISE ABOUT 22 IN THE CURRENT FISCAL YEAR FROM NET INCOME OF 307 MILLION IN THE YEAR ENDED JUNE 30 1993 ON SALES OF 331 MILLION YOU'VE GOT A SOFTWARE POWERHOUSE HERE WHICH IS CLOAKED IN A LOT OF OTHER BUSINESSES 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 9312200129 931220 TECHNOLOGY & HEALTH EPA ASKS DUPONT TO DELAY ITS PLAN TO PHASE OUT CFCS CHEMICAL MAKER IS IRKED OVER US MOVE TO CUT COSTS RELATED TO CLEAN AIR ACT BY TIMOTHY NOAH AND SUSAN CAREY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PERPLEXED EXECUTIVES AT DUPONT CO WOULD LIKE TO KNOW DOES THE FEDERAL GOVERNMENT WANT TO SAVE THE OZONE LAYER OR DOESN'T IT THE 1990 CLEAN AIR ACT REQUIRED THAT US MANUFACTURERS STOP PRODUCTION OF ALL CHLOROFLUOROCARBONS A CHEMICAL REFRIGERANT BELIEVED TO DEPLETE THE OZONE LAYER BY THE YEAR 2000 THAT DEADLINE WAS RECENTLY MOVED UP TO 1996 BY THE ENVIRONMENTAL PROTECTION AGENCY BUT NOW IN AN APPARENT ZIGZAG AIMED AT MINIMIZING THE COST TO CONSUMERS OF REPLACING CFCS IN AUTOMOBILE AIR CONDITIONERS THE EPA HAS ASKED DUPONT TO BOOST ITS PLANNED CFC PRODUCTION IN 1995 THE REQUEST HAS IRKED DUPONT SOMEWHAT AND INFURIATED ENVIRONMENTALISTS IT IS IRRESPONSIBLE TO BE STEPPING UP CFC PRODUCTION AT A TIME WHEN MANY NATIONS ARE MOVING TO PROTECT THE ENVIRONMENT BY PHASING THEM OUT SAID GREENPEACE'S JACQUES ROSAS THIS RECKLESS AND CYNICAL DISREGARD FOR HUMAN SAFETY HAS TO STOP NOW DUPONT WHICH MANUFACTURES HALF OF ALL DOMESTIC CFCS HAD ANNOUNCED LAST MARCH THAT IT WOULD STOP SELLING THE REFRIGERANT IN DEVELOPED COUNTRIES BY 1995 A FULL YEAR EARLIER THAN REQUIRED UNDER LAW THE COMPANY SAID IT BASED ITS DECISION ON THE INCREASING AVAILABILITY OF CFC ALTERNATIVES IN WHICH IT HAS INVESTED 500 MILLION BUT EPA DEPUTY ADMINISTRATOR ROBERT SUSSMAN SENT DUPONT A LETTER ASKING IT TO MANUFACTURE 76 MILLION POUNDS OF CFCS IN 1995 THE MAXIMUM ALLOWED UNDER LAW SO DUPONT WILL POSTPONE ITS PLANS TO END CFC PRODUCTION WE WERE PUT IN A CORNER EXPLAINED A DUPONT MANAGER THE EPA MADE ITS REQUEST AFTER RECEIVING COMPLAINTS FROM AUTO MANUFACTURERS THAT THE COST OF RETROFITTING PRE1984 AUTOMOBILES WITH CFC REPLACEMENTS WOULD BE PROHIBITIVE THE CAR MAKERS EXPLAINED THAT'S PARTLY BECAUSE OF TECHNOLOGICAL BARRIERS AND PARTLY BECAUSE A STOCKPILE OF CFCS MANUFACTURED BEFORE THE PRODUCTION BAN TAKES EFFECT WON'T BE AS LARGE AS EXPECTED REP JOHN DINGELL D MICH WHOSE DISTRICT INCLUDES SEVERAL AUTO PLANTS ALSO HAS VOICED CONCERN TO THE CLINTON ADMINISTRATION THE RETROFIT PROBLEM APPLIES ONLY TO CARS BUILT BEFORE THE CURRENT MODEL YEAR BECAUSE ALMOST NONE OF THE 1994 MODELS HAVE CFCS A SUBSEQUENT EPA STUDY FOUND THAT CONSUMERS COULD END UP SPENDING 200 TO RETROFIT THEIR AUTO AIR CONDITIONERS WITH CFC REPLACEMENTS THAT COULD SPARK A CONSUMER BACKLASH ACCORDING TO PAUL STOLPMAN DIRECTOR OF THE OFFICE OF ATMOSPHERIC PROGRAMS MR STOLPMAN SAID THE ENVIRONMENTAL CONSEQUENCES OF DUPONT'S MANUFACTURING THE UNPLANNED 76 MILLION POUNDS OF CFCS WOULD BE QUITE SMALL BUT LIZ COOK OZONE CAMPAIGN DIRECTOR FOR FRIENDS OF THE EARTH TERMED 76 MILLION POUNDS A PRETTY SIGNIFICANT AMOUNT SHE SAID THAT THE EPA'S REQUEST TO DUPONT WOULD INCREASE RATHER THAN DECREASE THE COST OF RETROFITTING BECAUSE IT WILL REMOVE THE PRESSURE NOW ON INDUSTRY TO FIND A DIFFERENT ALTERNATIVE TO CURRENT TECHNOLOGY 9312200128 931220 BROKEN HILL POSTS 16 INCREASE IN PRETAX PROFIT SPECIAL TO THE WALL STREET JOURNAL MELBOURNE AUSTRALIA BROKEN HILL PROPRIETARY CO A STEEL MINING AND OIL CONCERN REPORTED THAT PRETAX PROFIT ROSE 16 TO 109 BILLION AUSTRALIAN DOLLARS US7346 MILLION IN THE FISCAL FIRST HALF ENDED NOV 30 FROM A9428 MILLION A YEAR EARLIER SALES INCREASED 36 TO A812 BILLION FROM A784 BILLION THE COMPANY ATTRIBUTED THE BULK OF THE BETTER RESULTS TO THE PERFORMANCE OF ITS STEEL OPERATIONS WHICH REAPED THE BENEFITS OF REDUCED COSTS AND IMPROVING DEMAND IT SAID THE RESULTS ALSO REFLECT INCREASED SHIPMENTS FROM ITS ESCONDIDA COPPER OPERATIONS IN CHILE ITS AUSTRALIAN AND INDONESIAN COAL MINES AND HIGHER OUTPUT FROM IRON ORE AND MANGANESE OPERATIONS THE IMPACT OF A FALL IN WORLD OIL PRICES ON BHP'S REVENUE WAS PARTLY OFFSET BY THE START OF OIL PRODUCTION AT THE KUTUBU OIL FIELD IN PAPUA NEW GUINEA AND THE BRUCE FIELD IN BRITAIN BHP SAID ALL BUSINESSES BENEFITED FROM A LOWER AUSTRALIAN DOLLAR AGAINST THE US DOLLAR DURING THE FISCAL HALF YEAR THE COMPANY'S INTEREST EXPENSE FELL 17 TO A2361 MILLION FROM A YEAREARLIER A2854 MILLION WHILE DEPRECIATION AND AMORTIZATION COSTS ROSE 17 TO A6848 MILLION DISCUSSING THE OUTLOOK FOR BHP DIRECTORS SAID CONTINUING LOW PRICES FOR INTERNATIONAL COMMODITIES WILL MAKE IT DIFFICULT TO MAINTAIN THE IMPROVED PROFIT PERFORMANCE IN THE SECOND HALF OF THIS CURRENT FISCAL YEAR OUR BUSINESSES IN GENERAL ARE OPERATING AT CAPACITY WITH DEMAND FOR MOST PRODUCTS CONTINUING TO REMAIN FIRM DIRECTORS SAID 9312200127 931220 MOODY'S CONSIDERING DOWNGRADING RATINGS ON UNITED AIR PARENT NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT PLACED ON REVIEW FOR POSSIBLE DOWNGRADE CERTAIN LONGTERM DEBT RATINGS OF UNITED AIRLINES AS WELL AS THE PREFERRED STOCK RATING OF UAL CORP THE AIRLINE'S PARENT COMPANY THE ACTION WHICH COMES AS UAL'S BOARD IS CONSIDERING A PROPOSED 45 BILLION EMPLOYEE BUYOUT OF A MAJORITY OF THE COMPANY'S STOCK REFLECTS CONCERN OVER WHETHER THE COMPANY IS ENTERING A PERIOD OF INCREASED FINANCIAL AND OPERATING RISK MOODY'S SAID ABOUT 39 BILLION IN LONGTERM DEBT AND 550 MILLION OF PREFERRED STOCK COULD BE AFFECTED THE RATING AGENCY IN LATE OCTOBER LOWERED RATINGS ON ABOUT 3 BILLION OF UNITED DEBT AND KNOCKED DOWN UAL PREFERRED TO BA3 FROM BA2 AT THE TIME MOODY'S CITED THE AIRLINE'S HIGH EXPOSURE TO INTERNATIONAL MARKETS AND THE STIFF COMPETITION IT FACES FROM LOWCOST AIRLINES MOODY'S ALSO SAID AN IMPROVEMENT IN UNITED'S CREDIT PROFILE WOULD LAG THE VERY MODEST OPERATING RECOVERY EXPECTED FOR THE INDUSTRY AS A WHOLE MOODY'S ACKNOWLEDGED THAT THE CURRENT BUYOUT NEGOTIATIONS MAY LEAD TO REDUCED OPERATING COSTS AND AN ENHANCED COMPETITIVE PROFILE BUT THE AGENCY ALSO SAID THESE STRATEGIES MAY REQUIRE SIGNIFICANT CHANGES IN THE COMPANY'S OPERATING AND FINANCIAL STRUCTURE CHICAGOBASED UAL DECLINED TO COMMENT ON MOODY'S ACTION 9312200126 931220 WHAT'S NEWS WORLDWIDE RUSSIA SIGNALED THAT IT PLANS TO RETREAT FROM KEY ECONOMIC REFORMS THE WEAK SHOWING OF REFORM CANDIDATES IN THE DEC 12 ELECTIONS APPEARS TO HAVE SPARKED A POLICY REVIEW IN MOSCOW WITH A CABINET SHAKEUP ANTICIPATED LAST WEEK SOME GOVERNMENT DECISIONS ALREADY WERE RUNNING COUNTER TO THE AUSTERITY AND RAPID PRIVATIZATION ADVOCATED BY DEPUTY PRIME MINISTER GAIDAR AND OTHER RADICAL REFORMERS PRIME MINISTER CHERNOMYRDIN SAID THE NATION COULDN'T TOLERATE ANY MORE RADICAL CHANGES AND PRESIDENT YELTSIN ALSO PULLED BACK FROM REFORM RUSSIA'S FINANCE MINISTER THOUGH ASSURED THE GROUP OF SEVEN INDUSTRIAL NATIONS THAT RUSSIA WILL KEEP ECONOMIC REFORMS GOING AT THE CURRENT PACE THE PENTAGON HAS ORDERED THE ARMED SERVICES TO CUT ABOUT 4 BILLION FROM THEIR PROPOSED FISCAL 1995 DEFENSE BUDGETS ACCORDING TO DEFENSE OFFICIALS THOSE REDUCTIONS COME ON TOP OF AN ESTIMATED 30 BILLION SHORTFALL IN THE ADMINISTRATION'S PLANNED DEFENSE BUDGET FOR THE NEXT FIVE YEARS SERBIA'S NATIONALIST PRESIDENT PREDICTED VICTORY FOR HIS RULING SOCIALISTS IN YESTERDAY'S ELECTIONS BUT SOME POLLS INDICATED MILOSEVIC MIGHT FALL SHORT OF WINNING THE TWOTHIRDS MAJORITY HE SEEKS IN PARLIAMENT BECAUSE OF VOTER CONCERN OVER THE ECONOMY INITIAL RESULTS ARE EXPECTED TODAY UN OFFICIALS EVACUATED NEARLY THREE DOZEN WOUNDED OR ILL ADULTS AND CHILDREN FROM BOSNIA FOR MEDICAL TREATMENT IN THE WEST THE EVACUATIONS FROM MUSLIMHELD ZENICA AND MOSTAR CAME AS MUSLIM SERB AND CROAT LEADERS WERE PREPARING TO OPEN A NEW ROUND OF PEACE TALKS INVESTIGATORS ARE SEEKING A FILE THAT DEPUTY WHITE HOUSE COUNSEL FOSTER IS BELIEVED TO HAVE KEPT BEFORE HIS SUICIDE THE FILE ALLEGEDLY CONCERNS THE CLINTONS' BUSINESS DEALINGS WITH THE OWNER OF A FAILED ARKANSAS THRIFT TWO PROSPECTIVE NOMINEES WITHDREW THEIR NAMES FROM CONSIDERATION FOR JUSTICE DEPARTMENT JOBS DISTRICT OF COLUMBIA CORPORATION COUNSEL JOHN PAYTON AND PROFESSOR GERALD TORRES ASKED THAT THEY NOT BE OFFICIALLY NOMINATED AS ASSISTANT ATTORNEYS GENERAL TO HEAD THE CIVIL RIGHTS AND ENVIRONMENTAL DIVISIONS ISRAEL AND THE PLO ENDED TWO DAYS OF PRIVATE TALKS IN NORWAY AND AGREED TO MEET AGAIN SOON TO DISCUSS HOW TO IMPLEMENT THEIR ACCORD ON PALESTINIAN SELFRULE IN GAZA AND JERICHO SEPARATELY ISRAELI PLANES LAUNCHED TWO RAIDS ON PROIRANIAN GUERRILLA TARGETS IN SOUTH LEBANON TO RETALIATE FOR ROCKET ATTACKS A FORMER ISRAELI CHIEF RABBI MAY FACE SEDITION CHARGES FOR SAYING THAT SOLDIERS CAN REFUSE ORDERS TO DISMANTLE JEWISH SETTLEMENTS RABBI SHLOMO GOREN'S REMARKS DURING A RADIO BROADCAST YESTERDAY OUTRAGED ISRAELI CABINET OFFICIALS SHALIKASHVILI ARRIVED IN MOGADISHU TO MEET WITH AMERICAN TROOPS AND REVIEW PLANS FOR WITHDRAWING ALL US FORCES FROM SOMALIA BY CLINTON'S MARCH 31 DEADLINE THE JOINT CHIEFS CHAIRMAN MET WITH ITALY'S DEFENSE MINISTER WHO REPORTEDLY CONFIRMED THAT ROME ALSO INTENDS TO PULL OUT ITS MILITARY CONTINGENT BY THE END OF MARCH FORMER OHIO GOV CELESTE HAS EMERGED AS A FRONTRUNNER IN THE WHITE HOUSE SEARCH FOR A COORDINATOR TO RALLY CONGRESSIONAL SUPPORT FOR HEALTHCARE REFORM ADMINISTRATION OFFICIALS SAID CELESTE IS THE EARLY FAVORITE TO FILL THE POST THAT ORIGINALLY WAS EXPECTED TO GO TO NEW YORK ATTORNEY ICKES IRELAND WILL ORDER TOUGHER MEASURES AGAINST THE IRISH REPUBLICAN ARMY IF THE GROUP REJECTS A BRITISHIRISH PEACE PLAN AND RESUMES FULLSCALE VIOLENCE THE REPUBLIC'S PRIME MINISTER WARNED EARLIER HUNDREDS OF TRAINS WERE DISRUPTED IN SOUTHEASTERN ENGLAND AFTER WHAT WAS REPORTED TO BE A CODED WARNING OF A BOMB AT A LONDON STATION EL SALVADOR'S TOP CATHOLIC LEADER CALLED FOR A FULL INVESTIGATION INTO THE RIGHTWING DEATH SQUADS THAT KILLED WITH IMPUNITY DURING THE COUNTRY'S 12YEAR CIVIL WAR AND NOW THREATEN THE SALVADORAN PEACE PROCESS SAN SALVADOR ARCHBISHOP RIVERA DAMAS SAID A UNMANDATED PROBE INTO POST1991 POLITICAL VIOLENCE WOULDN'T GO FAR ENOUGH A PAKISTANI COURT ACQUITTED PRIME MINISTER BHUTTO'S HUSBAND OF KIDNAPPING A BUSINESSMAN BHUTTO SAID THE DECISION VINDICATED HER HUSBAND CLEARED OF 12 CHARGES BUT AWAITING TRIAL IN AN EXTORTION CASE 9312200125 931220 TRYGGHANSA RECAPITALIZING ITS HOME UNIT INSURER NEARS COMPLETION OF STOCK DEBT OFFERS TAPS INTO US MARKETS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER STRUGGLING FOR ALMOST THREE YEARS TO TURN AROUND ITS USBASED HOME INSURANCE CO UNIT SWEDISH INSURANCE COMPANY TRYGGHANSA SPP HOLDING AB EXPECTS TO COMPLETE A STOCK AND DEBT OFFERING THIS WEEK THAT WILL BOOST THE COMPANY'S BALANCE SHEET LAST WEEK TRYGGHANSA RAISED 127 MILLION FROM AN INITIAL PUBLIC OFFERING OF COMMON SHARES IN HOME HOLDINGS INC THE IMMEDIATE PARENT OF HOME INSURANCE ALTHOUGH THE MARKET GREETED THE OFFERING WITH SCANT ENTHUSIASM HOME HOLDINGS HAD PLANNED TO ISSUE ABOUT 129 MILLION SHARES AT 25 TO 27 EACH RAISING 325 MILLION TO 350 MILLION BUT CONCERNS ABOUT THE POSSIBILITY OF RISING INTEREST RATES HAVE BATTERED INSURANCE STOCKS IN RECENT WEEKS ESSENTIALLY MARKET CONDITIONS DIDN'T ALLOW THE COMPANY TO IMPLEMENT THE ORIGINAL PLAN A SPOKESWOMAN SAID INSTEAD HOME HOLDINGS SOLD 75 MILLION SHARES AT 17 EACH THE LOW END OF ITS EXPECTED PRICE RANGE AND IN THE FIRST DAY OF TRADING THE SHARES BARELY BUDGED FROM THE OFFERING PRICE CLOSING AT 17125 A SHARE TO MAKE UP FOR THE REDUCED PROCEEDS FROM THE SMALLER EQUITY OFFERING TRYGGHANSA INCREASED ITS PLANNED DEBT ISSUE TO 280 MILLION FROM 100 MILLION THE OFFERING IS EXPECTED TO BE COMPLETED THIS WEEK WHILE THE STOCK SALE MAY HAVE FALLEN SHORT OF EXPECTATIONS INSURANCE ANALYSTS NOTED THAT THE COMPLETION OF THE OFFERING GIVES TRYGGHANSA AN IMPORTANT LONGTERM ADVANTAGE FUTURE ACCESS TO US EQUITY MARKETS GOING FORWARD OUTWEIGHED WAITING SAID JOHN SNYDER A PROPERTY AND CASUALTY INSURANCE ANALYST AT AM BEST THEY KNEW THEY COULD ALWAYS COME BACK TO THE MARKET THEY REALLY WANTED TO AT LEAST START HAVING A PUBLIC STOCK PRESENCE IN THE US AND BEGIN DEVELOPING A TRACK RECORD HERE SINCE LEADING THE GROUP THAT ACQUIRED HOME INSURANCE FROM AMBASE CORP IN 1991 FOR 970 MILLION TRYGGHANSA AND OTHER INVESTORS HAVE ADDED ABOUT 830 MILLION TO HOME INSURANCE'S RESERVES INCLUDING 290 MILLION THIS YEAR MOREOVER MR SNYDER NOTES TRYGGHANSA HAS CONSOLIDATED CERTAIN OPERATIONS AND CUT COSTS AND EXPECTS TO FURTHER REDUCE COSTS BY 100 MILLION A YEAR BY 1995 THE BUYOUT LEFT HOME INSURANCE WITH A DEBTTOEQUITY RATIO OF MORE THAN 70 IN ITS FILING HOME HOLDINGS SAID THE DEBT LOAD MADE IT DIFFICULT TO IMPROVE HOME INSURANCE'S BUSINESS WHICH HAD STRUGGLED DURING THE LIQUIDATION OF AMBASE ASSETS AMBASE LED BY INVESTOR GEORGE SCHARFFENBERGER WANTED TO DEVELOP HOME INSURANCE INTO A FINANCIALSERVICES SUPERMARKET IN THE LATE 1980S IT ACQUIRED BROKERAGE FIRM GRUNTAL FINANCIAL CORP FOR 145 MILLION AND CARTERET BANCORP INC OF NEW JERSEY FOR 268 MILLION BUT AMBASE RAN INTO FINANCIAL PROBLEMS IN THE LATE 1980S LARGE INSURANCE LOSSES SHAKY FINANCING AND DEBT CONCERNS EVENTUALLY SHATTERED THE COMPANY'S FINANCIALSERVICES PLANS AND QUESTIONABLE REALESTATE INVESTMENTS BROUGHT CARTERET TO THE BRINK OF COLLAPSE BY LATE 1990 IN EARLY 1991 AMBASE MISSED A 410 MILLION PAYMENT ON SOME OF ITS HIGHRISK DEBT SHORTLY AFTERWARD IT COMPLETED THE SALE OF HOME INSURANCE TO THE TRYGGHANSA GROUP IN DECEMBER 1992 THRIFT REGULATORS SEIZED CARTERET CITING WIDESPREAD PROBLEMS IN REALESTATE LOANS AND EXECUTIVE COMPENSATION THE SEIZURE LEFT AMBASE WITH VIRTUALLY NO BUSINESSES GRUNTAL STILL PART OF HOME HAS ABOUT 200000 CLIENTS MAINLY RETAIL SECURITIES CUSTOMERS IT EMPLOYS ABOUT 1850 PEOPLE OPERATES IN 10 STATES AND IN THE NINE MONTHS ENDED SEPT 30 HAD TOTAL REVENUE OF 276 MILLION AND PRETAX PROFIT OF 36 MILLION UP FROM 24 MILLION A YEAR EARLIER HOME ALSO OWNS STERLING FOREST HOLDER OF A 17500ACRE TRACT NEAR TUXEDO NY WHICH HOME HOLDINGS CLAIMS IS THE LARGEST PRIVATELY HELD UNDEVELOPED AREA OF LAND IN THE NEW YORK METROPOLITAN AREA THE CURRENT HOME INSURANCE RECAPITALIZATION PLAN IS INTENDED TO MOVE THE RESTRUCTURING ALONG BY REDUCING DEBT AND INTEREST EXPENSES FOLLOWING THE DEBT AND STOCK OFFERINGS THE COMPANY'S DEBT LEVEL WILL DECLINE TO 465 MILLION FROM 530 MILLION AND ITS DEBTTOEQUITY RATIO WILL FALL TO AROUND 40 INTEREST EXPENSE WILL DECLINE BY 35 MILLION A YEAR IN ADDITION THE PLAN WILL BOOST HOME INSURANCE'S CAPITALIZATION TO 116 BILLION FROM 941 MILLION HOME INSURANCE HAS ALSO QUIT PERSONALINSURANCE LINES SUCH AS AUTO AND HOME INSURANCE AND THE REINSURANCE BUSINESS LOOKING AHEAD HOME INSURANCE SAID IT INTENDS TO FOCUS ON MORE PROFITABLE BUT HIGHLY COMPETITIVE COMMERCIAL BUSINESS AND SPECIALTY LINES SUCH AS INSURING LAWYERS DOCTORS AND ENGINEERS IN ITS FILING THE COMPANY SAID IT HAD A NET LOSS OF 100 MILLION OR 267 A SHARE AND EARNED PREMIUMS OF 14 BILLION ON A PROFORMA BASIS IN THE FIRST NINE MONTHS OF 1993 IN 1992 THE COMPANY HAD PROFORMA PROFIT OF 56 MILLION OR 195 A SHARE AS PART OF THE PLAN TRYGGHANSA WILL EXCHANGE A SUBSTANTIAL AMOUNT OF DEBT AND OTHER SECURITIES OWED BY HOME INSURANCE FOR HOME HOLDINGS COMMON STOCK ACCORDING TO THE FILING HOME INSURANCE WILL RETIRE 100 MILLION IN TRYGG PROMISSORY NOTES EXCHANGE 130 MILLION IN DEBT OWED TO TRYGG FOR 72 MILLION CLASS B COMMON SHARES OF HOME AND EXCHANGE TWO ISSUES OF PREFERRED STOCK FOR ABOUT 83 MILLION HOME SERIES A COMMON SHARES AFTER THE OFFERING TRYGGHANSA WILL HOLD ABOUT 47 OF HOME HOLDINGS' SERIES A COMMON AND ABOUT 65 OF HOME HOLDINGS ON A FULLY DILUTED BASIS 9312200124 931220 IBM'S NEW EUROPEAN CHIEF PLANS TO SLASH 10000 JOBS PARIS THE NEW CHAIRMAN OF INTERNATIONAL BUSINESS MACHINES CORP'S EUROPEAN OPERATIONS SAID HE PLANS TO CUT 10000 JOBS AS PART OF A PREVIOUSLY ANNOUNCED GLOBAL DOWNSIZING A SPOKESMAN AT IBM'S ARMONK NY HEADQUARTERS SAID THE CUTS ARE PART OF IBM'S PLANS ANNOUNCED IN JULY TO SHRINK ITS WORK FORCE BY 35000 EMPLOYEES BY THE END OF NEXT YEAR AT THAT TIME IBM TOOK A CHARGE OF 8 BILLION TO COVER THOSE REDUCTIONS REAL ESTATE AND OTHER RELATED COSTS AND SAID EUROPE WOULD BEAR THE BRUNT OF THE CUTS IN HIS FIRST PUBLIC STATEMENT SINCE HE WAS NAMED TO THE POST HANSOLAF HENKEL SAID HE WOULD ACCELERATE THE DOWNSIZING PROGRAM SET IN PLACE BY HIS PREDECESSOR RENATO RIVERSO WHO HAS ALREADY CUT THE NUMBER OF IBM EUROPE'S EMPLOYEES BY 30 TO 77000 IN TWO YEARS WE'RE GOING TO GET THE RESTRUCTURING BEHIND US AS QUICKLY AS POSSIBLE AND GO ON TO OTHER THINGS MR HENKEL SAID IN AN INTERVIEW ALTHOUGH HE GAVE NO PRECISE BREAKDOWN MR HENKEL WHO FORMALLY TAKES OVER ON JAN 1 SAID THE NEW CUTS WOULD PROBABLY INVOLVE A NUMBER OF INVOLUNTARY LAYOFFS HE ALSO SAID GERMANY WOULD BE HIT HARDEST THE NUMBER OF EMPLOYEES THERE WOULD FALL TO ABOUT 16000 BY THE END OF 1995 FROM THE CURRENT 21000 HE SAID HE DECLINED TO DISCUSS THE PROSPECTS FOR OTHER EUROPEAN COUNTRIES SAYING THAT EMPLOYEES HADN'T BEEN INFORMED 9312200123 931220 TECHNOLOGY & HEALTH US RECONSIDERS PATENT TO TRIBUNE SOFTWARE UNIT WASHINGTON THE PATENT AND TRADEMARK OFFICE TOOK THE RARE STEP OF REEXAMINING A PATENT GIVEN TO A SOFTWARE COMPANY FOR MULTIMEDIA TECHNOLOGY THAT THREATENED TO PUT UP A ROADBLOCK ON THE INFORMATION HIGHWAY COMPTON'S NEW MEDIA A SAN DIEGO SUBSIDIARY OF TRIBUNE CO OF CHICAGO WON A PATENT IN AUGUST THAT COVERS COMPUTERBASED SEARCH AND RETRIEVAL OF TEXT GRAPHICS AND VIDEO THE COMPANY STIRRED CONTROVERSY IN THE EMERGING MULTIMEDIA FIELD BY CLAIMING THAT ITS PATENT COVERED BASIC TECHNOLOGIES THAT COULD FORCE COMPETITORS TO PAY HUNDREDS OF MILLIONS OF DOLLARS IN ROYALTIES THE PATENT OFFICE SAID THE REEVALUATION WAS BASED ON NEW INFORMATION CHALLENGING THE PROPRIETY OF THE PATENT THE TRIBUNE CO SAID IT WAS LOOKING FORWARD TO WORKING WITH THE PATENT OFFICE ON THE REVIEW 9312200122 931220 FOREIGN EXCHANGE DOLLAR SEEN STRENGTHENING IN EARLY '94 BUT LITTLE ACTIVITY EXPECTED THIS WEEK BY JOHN P HUGHES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE US DOLLAR IS EXPECTED TO STRENGTHEN IN EARLY 1994 AGAINST MAJOR FOREIGN CURRENCIES ALTHOUGH LITTLE ACTIVITY IS EXPECTED THIS WEEK AHEAD OF THE YEAREND HOLIDAYS TRADERS SAID THE MARCH YEN CONTRACT ENDED 00047 LOWER AT 09098 CENT LAST WEEK AS THE IT BROKE THROUGH THE PSYCHOLOGICALLY IMPORTANT 110 LEVEL AGAINST THE DOLLAR TRADERS SAID THE MARKET IS COMFORTABLE WITH THE NOTION THAT THE US WASN'T GOING TO FURTHER PRESSURE JAPAN OVER ITS TRADE PRACTICES IN NEW YORK TRADING FRIDAY THE DOLLAR CLOSED AT 17090 MARKS AND 11018 YEN COMPARED WITH 17093 MARKS AND 10955 YEN LATE THURSDAY ABOUT MIDDAY ON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 11010 YEN AND AT 17095 MARKS WE'RE ON AUTOPILOT WAITING FOR THE HOLIDAYS SAID SANDY BATTEN SENIOR ECONOMIST AT CITIBANK THERE'S ALWAYS THE POSSIBILITY OF SOMETHING HAPPENING IN RUSSIA BUT SHORT OF THAT WE'LL JUST BE TREADING WATER HE SAID MR BATTEN SEES UNDERLYING STRENGTH FOR THE DOLLAR AND EXPECTS IT TO ADVANCE AGAINST EUROPEAN CURRENCIES ONCE THE MARKET RETURNS TO MORE NORMAL TRADING IN JANUARY HOWEVER THERE IS LITTLE IN THE WAY OF MARKETMOVING ECONOMIC DATA EXPECTED THIS WEEK THE FINAL REVISION OF THIRDQUARTER GROSS DOMESTIC PRODUCT IS SLATED FOR WEDNESDAY AND THE DURABLE GOODS REPORT FOR OCTOBER IS DUE ON THURSDAY IT'S SO QUIET THERE'S HARDLY ANY TRADING GOING ON SAID MICHAEL CASEY INTERNATIONAL ECONOMIST WITH MARIA FIORINI RAMIREZ INC THE MARKET CAN MOVE ON ANY LITTLE PIECE OF INFORMATION HE CAUTIONED THAT WITH ACTIVITY SO LIGHT PRICE MOVEMENTS OFTEN ARE EXAGGERATED THE JAPANESE ECONOMY HAS A WAY TO GO THEY'RE STILL STRUGGLING WITH THE OVERVALUED ASSET PROBLEM WE HAD IN THE 1980S SAID CAROL STONE SENIOR ECONOMIST WITH NOMURA SECURITIES INTERNATIONAL INC THEY'RE IN A SLUGGISH POSITION AT BEST SO AT THE LEAST YOU'LL SEE A CONTINUED FIRM DOLLAR AGAINST THE YEN IN COMING MONTHS SHE ADDED AS FOR GERMANY'S ECONOMY MS STONE SAID IT ALSO HAS A LONG WAY TO GO AND SHE PREDICTED CONTINUING DOLLAR STRENGTHENING AGAINST THE MARK NO ONE EXPECTS RATES TO GO UP AND THAT'S A SIMILAR SCENARIO FOR EUROPE SAID CARLO BESENIUS SENIOR VICE PRESIDENT AND MANAGING DIRECTOR AT GRUNTAL & CO WE'RE GOING TO HAVE A MODESTLY INCREASING US DOLLAR AS THE US IS FURTHER ALONG IN THE ECONOMIC CYCLE MR BESENIUS SAID WITH NO INFLATIONARY PRESSURE AND GROWTH IN INTEREST RATES THE DOLLAR SHOULD TRADE BETWEEN 105 AND 116 YEN IN 1994 MICHAEL MORAN CHIEF ECONOMIST AT DAIWA SECURITIES AMERICA INC SAID OVER TIME WE SHOULD BE SEEING THE DOLLAR STRENGTHEN THE BUNDESBANK WILL CONTINUE TO EASE AND THE FED WILL CONTINUE TO TIGHTEN THIS SHIFT IN RELATIVE INTEREST RATES WILL BENEFIT THE DOLLAR MR MORAN SAID 9312200121 931220 WHO'S NEWS STANDARD REGISTER CO STANDARD REGISTER CO DAYTON OHIO PETER S REDDING WAS NAMED EXECUTIVE VICE PRESIDENTCHIEF OPERATING OFFICER AND CRAIG J BROWN VICE PRESIDENT OF FINANCE TREASURER AND CHIEF FINANCIAL OFFICER EFFECTIVE JAN 1 MR REDDING 55 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER MR BROWN 44 WAS VICE PRESIDENT OF FINANCE AND TREASURER A SPOKESWOMAN FOR THE MAKER OF BUSINESS FORMS PRESSURESENSITIVE LABELS AND OTHER PRODUCTS SAID BOTH THE CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER POSITIONS ARE NEW ONES AT THE COMPANY 9312200120 931220 USCANADA PANEL SEEKS AN END TO LUMBER DUTIES SPECIAL TO THE WALL STREET JOURNAL WASHINGTON A USCANADA TRADE PANEL CALLED ON THE US COMMERCE DEPARTMENT TO REVERSE ITS DECISION TO IMPOSE PENALTY DUTIES AGAINST CANADIAN SOFTWOOD LUMBER IMPORTS THE FIVEMEMBER PANEL FOR THE SECOND TIME ORDERED THE DEPARTMENT TO REVIEW ITS FINDINGS AND SAID IT SHOULD REPORT BACK BY JAN 6 BUT THE GUIDELINES ESTABLISHED UNDER FRIDAY'S 200PAGE RULING ESSENTIALLY DICTATE THAT THE DEPARTMENT OVERTURN ITS DECISION CALLING FOR COUNTERVAILING DUTIES AGAINST ALLEGED CANADIAN GOVERNMENT SUBSIDIES THE PANEL'S LATEST DECISION REPRESENTS A SIGNIFICANT SETBACK FOR THE US GOVERNMENT THE OFFICE OF THE US TRADE REPRESENTATIVE SAID IT HADN'T DECIDED WHETHER TO APPEAL THE RULING BUT OFFICIALS FAMILIAR WITH THE DISPUTE SAID AN APPEAL WAS LIKELY THE US HAS UNTIL MIDFEBRUARY TO DECIDE WHETHER TO FILE AN APPEAL WHICH WOULD GO TO A SPECIAL THREEJUDGE PANEL A DECISION BY THE SPECIAL PANEL WOULD BE DUE SOMETIME AROUND MIDAPRIL THE DISPUTE PANEL'S LATEST DECISION QUESTIONS THE COMMERCE DEPARTMENT'S ASSESSMENT OF CANADIAN PROVINCIAL TIMBER PROGRAMS AND THEIR IMPACT ON SPECIFIC INDUSTRIES THE US CONTENDS THE PROVINCIAL TIMBERCUTTING FEES ARE ARTIFICIALLY LOW AND AMOUNT TO SUBSIDIES THE DECISION ALSO SUGGESTS THAT THE DEPARTMENT DIDN'T SUBSTANTIATE CONTENTIONS ABOUT COMPETITIVE DISTORTIONS THE DEPARTMENT INITIALLY LEVIED 65 DUTIES AGAINST CANADIAN SOFTWOOD IN MAY 1992 THAT DECISION WAS SENT BACK TO THE DEPARTMENT FOR REVIEW AND THE DEPARTMENT BOOSTED THE LEVIES TO 115 9312200119 931220 POLITICS & POLICY FILE ON CLINTONS IS BEING SOUGHT IN FOSTER CASE BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL INVESTIGATORS ARE SEEKING A FILE THAT DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER IS BELIEVED TO HAVE KEPT BEFORE HIS JULY 20 SUICIDE THE FILE IS SAID TO CONCERN BILL AND HILLARY RODHAM CLINTON'S BUSINESS DEALINGS WITH THE OWNER OF A FAILED ARKANSAS THRIFT LAWENFORCEMENT OFFICIALS SAID THE INVESTIGATORS HAVE BEEN TOLD THE FILE DEALT WITH WHITEWATER DEVELOPMENT CORP AN OZARK MOUNTAINS REALESTATE FIRM THAT WAS JOINTLY OWNED BY THE CLINTONS AND JAMES MCDOUGAL OWNER OF NOWDEFUNCT MADISON GUARANTY SAVINGS & LOAN ASSOCIATION AND HIS WIFE SUSAN NO SUCH FILE WAS LISTED HOWEVER IN A JULY 22 INVENTORY OF PAPERS PERSONAL EFFECTS AND OTHER ITEMS FOUND IN MR FOSTER'S WHITE HOUSE OFFICE OFFICIALS SAID INVESTIGATORS ARE TRYING TO DETERMINE AMONG OTHER THINGS WHETHER THE FILE WAS REMOVED FROM HIS OFFICE AND IF SO BY WHOM AND FOR WHAT REASONS WHATEVER THEY TURN UP WILL BE OF INTEREST TO A SPECIAL TEAM OF PROSECUTORS WHO ARE PURSUING A SEPARATE INVESTIGATION OF MADISON GUARANTY WHICH INCLUDES A POSSIBLE DIVERSION OF THRIFT FUNDS TO HELP PAY OFF A 1984 REELECTION CAMPAIGN DEBT OF 50000 FOR WHICH THENGOV CLINTON WAS PERSONALLY LIABLE THE SEARCH FOR THE FILE REPORTED YESTERDAY BY THE NEW YORK TIMES IS PART OF A JUSTICE DEPARTMENT 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 WHILE THE NOTE DIDN'T MENTION WHITEWATER OR THE MCDOUGALS IT ALLEGES THAT FEDERAL BUREAU OF INVESTIGATION OFFICIALS HAD LIED ABOUT THE CIRCUMSTANCES OF THEIR INQUIRY LAST SPRING INTO POSSIBLE ABUSES AT THE WHITE HOUSE TRAVEL OFFICE JUSTICE DEPARTMENT INVESTIGATORS ARE ALSO TRYING TO OBTAIN A PERSONAL DIARY THAT MR FOSTER KEPT IN THE MONTHS BEFORE HIS SUICIDE LAWENFORCEMENT OFFICIALS SAID THE WHITE HOUSE NEVER DISCLOSED THE EXISTENCE OF A DAIRY BUT ON SATURDAY THE WASHINGTON POST CITED A CONFIDENTIAL PARK POLICE DEPARTMENT REPORT AS SAYING THAT TWO INVESTIGATORS HAD REVIEWED MR FOSTER'S PERSONAL DIARY IN THE OFFICE OF JAMES HAMILTON A WASHINGTON ATTORNEY WHO IS REPRESENTING THE FOSTER FAMILY THE PARK POLICE HAVE BEEN INVESTIGATING MR FOSTER'S DEATH BECAUSE IT OCCURRED ON FEDERAL PARKLAND IN VIRGINIA MR HAMILTON WHO COULDN'T BE REACHED FOR A COMMENT OVER THE WEEKEND HAS REFUSED TO GIVE THE DIARY TO INVESTIGATORS OFFICIALS DESCRIBED THE DIARY AS A SMALL STOREBOUGHT NOTEBOOK WITH ABOUT 12 PAGES OF ENTRIES MOSTLY ABOUT THE 1992 PRESIDENTIAL CAMPAIGN WHITE HOUSE OFFICIALS INCLUDING SENIOR ADVISER BRUCE LINDSEY COULDN'T BE REACHED FOR A COMMENT THE FILE IS LIKELY TO BE MORE RELEVANT THAN THE DIARY TO THE MADISON GUARANTY INVESTIGATION UNDER WAY IN LITTLE ROCK ARK IT IS PRESUMED TO CONTAIN PAPERS PERTAINING TO BILL AND HILLARY CLINTON'S FINANCES INCLUDING TAX RETURNS FOR CERTAIN YEARS AND THEIR INVESTMENT IN WHITEWATER DEVELOPMENT MR FOSTER ACTED AS THE CLINTON'S PERSONAL ATTORNEY LAST YEAR AMONG OTHER THINGS HE HANDLED THE SALE OF THEIR WHITEWATER HOLDINGS TO MR MCDOUGAL FOR 1000 THE CLINTONS HAVE MAINTAINED ALL ALONG THAT WHITEWATER A 230ACRE DEVELOPMENT ON THE WHITE RIVER IN NORTHERN ARKANSAS LAUNCHED IN 1978 HAS BEEN A MONEYLOSING VENTURE MR FOSTER ALSO OVERSAW THE PREPARATION OF DELINQUENT WHITEWATER TAX RETURNS FOR THE CLINTONS 9312200118 931220 WHO'S NEWS IN A SETBACK 2 CLINTON CHOICES WITHDRAW FROM CONSIDERATION FOR JUSTICE POSTS BY JOE DAVIDSON AND PAUL M BARRETT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON IN ANOTHER SETBACK FOR SENIOR STAFFING AT THE JUSTICE DEPARTMENT THE CLINTON ADMINISTRATION'S CHOICES TO LEAD THE CIVIL RIGHTS AND ENVIRONMENTAL DIVISIONS HAVE WITHDRAWN FROM CONSIDERATION DISTRICT OF COLUMBIA CORPORATION COUNSEL JOHN PAYTON AND LAW PROFESSOR GERALD TORRES ASKED THAT THEY NOT BE OFFICIALLY NOMINATED AS ASSISTANT ATTORNEYS GENERAL FOR THE CIVIL RIGHTS AND ENVIRONMENTAL POSITIONS RESPECTIVELY WHEN IT SEEMED THEIR NOMINATIONS WOULD BE STALLED INDEFINITELY NEARLY A YEAR INTO THE CLINTON ADMINISTRATION THERE ARE STILL NO NOMINEES TO HEAD THOSE TWO JUSTICE DEPARTMENT DIVISIONS HOWEVER THE ADMINISTRATION HAS DECLARED A CONCERN FOR THE ENFORCEMENT OF CIVIL RIGHTS AND ENVIRONMENTAL LAWS ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL SAID THE ADMINISTRATION WILL HAVE NOMINEES READY FOR SENATE CONFIRMATION WHEN IT RETURNS FROM RECESS IN LATE JANUARY HE INSISTED THAT WORK ON CIVIL RIGHTS AND ENVIRONMENTAL ISSUES HASN'T LAGGED AND THAT WE ARE MOVING ON OUR AGENDA LOIS SCHIFFER A DEPUTY ASSISTANT ATTORNEY GENERAL IS CONSIDERED A FRONTRUNNER FOR THE ENVIRONMENTAL POST MR TORRES WHO HAD BEEN WORKING IN THE DEPARTMENT ON ENVIRONMENTAL ISSUES DURING A LEAVE FROM TEACHING WAS ASKED BY ATTORNEY GENERAL JANET RENO TO REMAIN WITH THE AGENCY AS HER COUNSELOR ON ENVIRONMENTAL ISSUES HE AGREED TO DO SO THE ADMINISTRATION HAS ASKED CIVIL RIGHTS GROUPS TO RECOMMEND NAMES FOR THE CIVIL RIGHTS DIVISION ONE FORMER FEDERAL CIVIL RIGHTS OFFICIAL SUGGESTED PRESIDENT CLINTON MAY WANT TO APPOINT TO THE CIVIL RIGHTS POST SOMEONE WHO HAS ALREADY BEEN CONFIRMED ESPECIALLY NOW THAT TWO NAMES FOR THAT POSITION HAVE BEEN PULLED WHEN CONFIRMATION SEEMED DOUBTFUL UNIVERSITY OF PENNSYLVANIA LAW PROFESSOR LANI GUINIER'S NAME WAS PULLED EARLIER TWO PEOPLE THE FORMER OFFICIAL MENTIONED ARE JUDY WINSTON GENERAL COUNSEL IN THE EDUCATION DEPARTMENT AND THOMAS WILLIAMSON LABOR DEPARTMENT SOLICITOR AN AIDE TO A CONGRESSIONAL BLACK CAUCUS MEMBER SAID WADE HENDERSON CHIEF LOBBYIST FOR THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE MAY BE CONSIDERED MR PAYTON'S CHANCES APPARENTLY WERE DOOMED AFTER A MEETING WITH CAUCUS MEMBERS SEVERAL WEEKS AGO OF PARTICULAR CONCERN TO SOME MEMBERS FROM SOUTHERN STATES WAS THAT MR PAYTON DIDN'T VOTE REGULARLY THE ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS ENFORCES THE VOTING RIGHTS ACT WHICH GREATLY ENHANCED THE POLITICAL POWER OF BLACK PEOPLE PARTICULARLY IN THE SOUTH NO CAUCUS MEMBERS OPENLY CAMPAIGNED AGAINST MR PAYTON HOWEVER THE LACK OF SUPPORT OR STEALTH OPPOSITION AS ONE ADMINISTRATION OFFICIAL CALLED ITWAS A MAJOR FACTOR IN LEADING THE ADMINISTRATION TO BELIEVE HIS CONFIRMATION WOULD BE DIFFICULT AT BEST MR TORRES'S EXPECTED NOMINATION WAS STALLED BECAUSE OF A CONTINUING INVESTIGATION INVOLVING ONE OR MORE ASSOCIATES WHO MAY HAVE MISREPRESENTED THEIR FIRM IN A CONTRACT WITH THE FEDERAL DEPOSIT INSURANCE CORP THE FIRM DID THE WORK DESCRIBED BY THE CONTRACT AND THE GOVERNMENT LOST NO MONEY THROUGH THE WORK WITH MR TORRES'S ASSOCIATES A CLINTON ADMINISTRATION OFFICIAL SAID A FEDERAL BUREAU OF INVESTIGATION PROBE HAS CLEARED MR TORRES OF ANY WRONGDOING HE WOULD HAVE BEEN THE DEPARTMENT'S HIGHEST RANKING HISPANIC PERSON BUT BECAUSE THE INVESTIGATION REMAINS OPEN HE WOULDN'T HAVE BEEN ABLE TO ANSWER SENATORS' QUESTIONS ABOUT WHAT ROLE IF ANY HE HAD IN THE MATTER THIS SEEMED LIKELY TO DELAY HIS CONFIRMATION INDEFINITELY 9312200117 931220 HOUSE SERGEANTATARMS SENTENCED TO TWO YEARS WASHINGTON AP FORMER HOUSE SERGEANTATARMS JACK RUSS WAS SENTENCED TO TWO YEARS IN PRISON ON EMBEZZLEMENT AND FRAUD CHARGES ARISING FROM THE HOUSE BANK SCANDAL US DISTRICT JUDGE STANLEY HARRIS REJECTED A PLEA BY MR RUSS'S ATTORNEY PAUL KNIGHT TO REDUCE THE SENTENCE TO 10 MONTHS WITH HALF OF THAT SERVED IN HOME DETENTION THE JUDGE ACCEPTED THE SENTENCING RECOMMENDATIONS OF THE JUSTICE DEPARTMENT SAYING THEY FIT THE CRIME MR RUSS PLEADED GUILTY TO THREE FELONY COUNTS IN OCTOBER HE CASHED 17 CHECKS WITH INSUFFICIENT FUNDS AT THE BANK EMBEZZLING 75300 THAT EVENTUALLY WAS PAID BACK HE ADMITTED DEFRAUDING INVESTORS AND LENDERS OF 445000 THAT WAS INTENDED FOR HIS PRIVATE BUSINESS OF MAKING DISPLAY CASES FOR FLAGS HE ALSO ADMITTED HE FAILED TO DISCLOSE 221125 IN LIABILITIES IN A 1989 OFFICIAL FINANCIAL STATEMENT AS PART OF THE SENTENCE MR RUSS WAS ORDERED TO MAKE RESTITUTION OF THE 445000 TO THE LENDERS AND INVESTORS A REPAYMENT HE PREVIOUSLY SAID HE WOULD MAKE JUDGE HARRIS SAID THE MONEY WOULD BE REPAID MONTHLY FROM MR RUSS'S RETIREMENT FUNDS MR RUSS SERGEANTATARMS FROM JANUARY 1983 TO MARCH 1992 ALSO WAS TOLD TO PERFORM 250 HOURS OF COMMUNITY SERVICE AFTER HIS RELEASE 9312200116 931220 DALLAS REALESTATE LISTINGS WILL BE AVAILABLE ON PCS DALLAS A GROUP OF DALLAS REALESTATE BROKERS PLANS TO MAKE ITS COMPUTERIZED LISTINGS OF HOMES FOR SALE AVAILABLE TO ANYONE WITH A PERSONAL COMPUTER AND A MODEM PROSPECTIVE HOME BUYERS WILL BE ABLE TO LEARN THE ADDRESS ASKING PRICE LISTING BROKER SIZE AND OTHER DESCRIPTIVE INFORMATION OF EACH OF THE ROUGHLY 15000 PROPERTIES IN THE LISTINGS ACCORDING TO OFFICIALS OF THE GREATER DALLAS ASSOCIATION OF REALTORS SELLERS' NAMES WON'T BE INCLUDED AND OWNERS WILL HAVE THE OPTION OF KEEPING THEIR PROPERTIES OFF THE PUBLICLY AVAILABLE LISTINGS ALTOGETHER THERE WILL BE NO CHARGE TO TAP INTO THE LISTINGS ASSOCIATION OFFICIALS SAID THEY BELIEVE THEIRS IS THE FIRST REALTOR GROUP TO MAKE THIS INFORMATION ACCESSIBLE TO BUYERS BY COMPUTER SHEILA RICE AN OFFICER OF THE ASSOCIATION AND A VICE PRESIDENT AT REALESTATE AGENCY HENRY S MILLER CO SAID THE SERVICE WOULD GIVE HOME BUYERS A BETTER SENSE OF THE MARKET IT WILL MAKE THE CONSUMER FEEL MORE CONFIDENT ABOUT MAKING A DECISION SHE SAID 9312200115 931220 GM LIFTS PRICES ON 1994 MODELS A SECOND TIME FIRM'S MOVE REFLECTS BELIEF BY DETROIT THAT SALES WILL CONTINUE RISING BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP RAISED PRICES ON ITS 1994 MODELS FOR THE SECOND TIME SINCE THEY WERE INTRODUCED THIS FALL EVEN AS SOME ECONOMISTS WARN THAT STEADILY RISING PRICES WILL HURT SALES THE PRICE INCREASES AMOUNT TO AN AVERAGE OF 08 OR 164 FOR CARS AND 06 OR 131 FOR TRUCKS TOGETHER WITH INCREASES AT THE BEGINNING OF THE MODEL YEAR THIS FALL GM HAS RAISED ITS AVERAGE 1994 CAR PRICE BY 23 AND ITS AVERAGE TRUCK PRICE BY 28 THE LATEST GM PRICE INCREASES THOUGH MODERATE CONTINUE THE STEADY DRUMBEAT OF PRICE HIKES THAT IS PUSHING THE AVERAGE US CAR PRICE UP BY 56 TO 18800 FROM 17800 OVER THE COURSE OF 1993 ACCORDING TO DRI/MCGRAW HILL THE VERY HIGH PRICINGS ARE GOING TO SIGNIFICANTLY HOLD DOWN INDUSTRY VOLUMES WARNS BERNARD CAMPBELL AN ANALYST AT DRI/MCGRAW HILL ALAN L BAUM AN ANALYST WITH AUTOFUTURES AGREES THE ISSUE IS INCOME MR BAUM SAYS HE BELIEVES VEHICLE SALES AT ABOUT 139 MILLION FOR THIS YEAR WILL GROW TO JUST UNDER 15 MILLION IN 1995 AND THEN TAIL OFF WE JUST DON'T SEE HOW SLOW ECONOMIC GROWTH AND DECLINING REAL INCOMES FOR TWOTHIRDS OF AMERICANS CAN PRODUCE MORE THAN 15 MILLION SALES MUCH LESS MATCH THE HISTORIC 163 MILLION PEAK REACHED IN 1986 SAYS MR BAUM THAT VIEW RUNS COUNTER TO PREVAILING SENTIMENT IN DETROIT J MICHAEL LOSH GM'S HEAD OF SALES AND MARKETING SAYS HE EXPECTS BOTH GM AND INDUSTRY SALES TO CONTINUE TO GROW AND DESCRIBED THE PRICE HIKES AS MODERATE ROBERT J EATON CHAIRMAN OF CHRYSLER CORP AND ALEXANDER J TROTMAN HIS COUNTERPART AT FORD MOTOR CO HAVE SAID ANNUAL SALES WILL HIT 165 MILLION TO 17 MILLION UNITS IN THE NEXT FEW YEARS THE EXECUTIVES SAY DEMAND WILL CONTINUE TO GROW BECAUSE LEASING AND LOW INTEREST RATES ARE MAKING CARS MORE AFFORDABLE THEY ALSO SAY CONSUMERS WANT CARS LOADED WITH FEATURES LIKE POWER WINDOWS HELPING TO EXPLAIN WHY PRICES ARE RISING SO RAPIDLY THERE'S LITTLE DOUBT THAT PRICES ARE CLIMBING ALTHOUGH GM SAYS 1994 CAR PRICES HAVE ONLY RISEN 23 THAT NUMBER EXCLUDES THE COST OF ADDITIONAL EQUIPMENT SUCH AS AIRBAGS IN THE NEW MODELS THE AVERAGE PRICE CONSUMERS ACTUALLY PAY HAS RISEN MORE SHARPLY ALTHOUGH IT'S UNCLEAR BY HOW MUCH WHEN THE GEO PRIZM LSI WAS INTRODUCED LITTLE MORE THAN A YEAR AGO FOR EXAMPLE IT COST 10995 THE CAR NOW RETAILS FOR 11840 AN 8 INCREASE INCLUDING THE LATEST 340 HIKE BUT GM CONSIDERS THE INCREASE TO BE MUCH SMALLER BECAUSE IT EXCLUDES THE COST OF ADDITIONAL SAFETY EQUIPMENT THAT IS STANDARD ON THE NEW MODEL JAPANESE AUTO MAKERS ARE BOOSTING THEIR PRICES TO KEEP PACE WITH THE STRONG YEN AND AUTO INDUSTRY ANALYSTS SAY THEY EXPECT ADDITIONAL PRICE INCREASES IN THE NEXT FEW WEEKS DESPITE ITS ANNOUNCEMENT THIS FALL THAT IT WOULD SELL MOST 1994 MODELS AT 1993 PRICES MAZDA MOTOR CO LATER ANNOUNCED A ROUND OF PRICE HIKES THAT INCREASED PRICES BY AS MUCH AS 2550 ON SOME CARS THE BIG THREE SEIZING AN OPPORTUNITY TO INCREASE PROFITS HAVE BEEN RAISING THEIR PRICES RIGHT ALONG WITH THEIR JAPANESE COMPETITORS CHRYSLER HAS RAISED ITS PRICES FOUR SEPARATE TIMES SINCE THE FALL OF 1992 IT HAS ALSO CUT REBATES AND RAISED DESTINATION CHARGES THE END RESULT IS SOME PRICES ARE UP MORE THAN 1350 A VEHICLE FORD HAS TAKEN A SIMILAR TACK AND THE PRICE HIKES IT HAS ACHIEVED JUST THROUGH SCALING BACK DISCOUNTS ARE SUBSTANTIAL IN THE THIRDQUARTER LAST YEAR FORD WAS PAYING AN AVERAGE OF 1050 IN INCENTIVES FOR EACH VEHICLE IT SOLD IN THE SAME QUARTER THIS YEAR ITS REBATES DROPPED TO AN AVERAGE OF 865 PER VEHICLE THAT'S A LARGELY HIDDEN 185 PRICE HIKE BOTH FORD AND CHRYSLER SAY THEY'LL CUT REBATES MORE NEXT YEAR GM FOR ITS PART DIDN'T INCREASE ITS PRICES ACROSS THE BOARD PRICES WERE INCREASED FOR 16 OUT OF 19 DIFFERENT CHEVROLET VEHICLES TYPICALLY OLDER VEHICLES SUCH AS THE LUMINA SEDAN ESCAPED PRICE HIKES WHILE PRICES WERE BOOSTED ON SOME HOT NEW VEHICLES SUCH AS THE PONTIAC FIREBIRD SPORTS CAR THE MIDLEVEL FIREBIRD WAS INTRODUCED AT 17999 LAST SUMMER AND NOW SELLS FOR 18249 CADILLAC INCREASED THE PRICE OF ITS TOPOFTHELINE DEVILLE THE CONCOURS BY 1400 TO 36590 BUT SOME PRICE HIKES WERE QUITE MODEST THE PONTIAC GRAND PRIX SE SEDAN WENT UP ONLY 80 TO 16254 9312200114 931220 GATT TRADE AGREEMENT IS CRITICIZED BY AFLCIO WASHINGTON THE AFLCIO CRITICIZED THE RECENTLY COMPLETED WORLD TRADE AGREEMENT SIGNALING THAT UNIONS MAY AGAIN CAMPAIGN AGAINST A MAJOR INTERNATIONAL ACCORD THE PACT FINISHED LAST WEEK UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN GENEVA OFFERS LITTLE IF ANYTHING TO THE WORLD'S WORKING PEOPLE AND MAY IN FACT HARM THEIR INTERESTS THE AFLCIO SAID IN A STATEMENT WITH THE US TRADE DEFICIT EXPECTED TO EXCEED 115 BILLION FOR 1993 THE AGREEMENT'S APPARENT SHORTCOMINGS ARE EVEN MORE ALARMING ORGANIZED LABOR RECENTLY LED THE FIGHT AGAINST US CONGRESSIONAL RATIFICATION OF THE NORTH AMERICAN FREE TRADE AGREEMENT RUNNING A STRONG CAMPAIGN BUT LOSING IN THE FINAL DAYS WITH THE GATT TREATY REQUIRING CONGRESSIONAL APPROVAL SIGNIFICANT UNION OPPOSITION COULD SET UP ANOTHER BATTLE THE 86UNION UMBRELLA ORGANIZATION SAID THE GATT ACCORD COULD COST THE US TEXTILE INDUSTRY AS MANY AS 15 MILLION JOBS THE GROUP ALSO EXPRESSED CONCERN THAT THE AGREEMENT WOULD WEAKEN US ANTIDUMPING AND ANTISUBSIDY LAWS AND IT SAID IT IS WORRIED ABOUT THE POTENTIAL SURRENDER OF US SOVEREIGNTY TO A NEW INTERNATIONAL BUREAUCRACY THE UNION GROUP ALSO COMPLAINED THAT NEGOTIATORS HADN'T LOOKED OUT FOR THE INTERESTS OF US INDUSTRIES AND THEIR WORKERS HURT BY FOREIGN IMPORTS 9312200113 931220 AWARD OF LONDON ROUTES TO AMR UNIT IS FINALIZED WASHINGTON THE TRANSPORTATION DEPARTMENT MADE FINAL ITS AWARD OF TWO COVETED LONDON AIRLINES ROUTES TO AMR CORP'S AMERICAN AIRLINES UNIT AMID CONTINUING CRITICISM THAT POLITICS INFLUENCED ITS DECISION AMERICAN SAID IT WILL START OPERATING ON THE ROUTES SERVING RALEIGHDURHAM NC AND NASHVILLE TENN IN MAY LAST MONTH AFTER THE DEPARTMENT FIRST ANNOUNCED ITS INTENTION TO AWARD THE ROUTES TO AMERICAN UTAH OFFICIALS CHARGED THE CLINTON ADMINISTRATION WAS TRADING ROUTES FOR CONGRESSIONAL VOTES IN FAVOR OF THE NORTH AMERICAN FREE TRADE AGREEMENT SALT LAKE CITY HAD SOUGHT ONE OF THE ROUTES FOR DELTA AIR LINES THIS WEEK REP JAMES L OBERSTAR D MINN CHAIRMAN OF THE HOUSE AVIATION SUBCOMMITTEE WROTE TRANSPORTATION SECRETARY FEDERICO PENA URGING HIM TO ENSURE POLITICAL INSULATION IN ROUTE AWARDS HE SAID THE DEPARTMENT SHOULD HAVE USED A FORMAL HEARING PROCESS THAT WOULD LEAVE THE DECISION TO A CIVIL SERVANT NOT TO POLITICAL APPOINTEES THE DEPARTMENT SAID THAT AMERICAN COULD BEST COMPETE WITH BRITISH AIRWAYS WHOSE INVESTMENT IN USAIR GROUP INC TRIGGERED THE COMPETITION FOR THE TWO LONDON ROUTES TO GET TRANSPORTATION DEPARTMENT APPROVAL FOR THE BRITISH AIRWAYS DEAL USAIR HAD RELINQUISHED ITS LONDON ROUTE SERVING CHARLOTTE NC AND BALTIMORE 9312200112 931220 TECHNOLOGY & HEALTH MERCK STEPS UP WORK ON AN AIDS DRUG FOLLOWING PROMISING' INITIAL TRIALS BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL MERCK & CO IS STEPPING UP THE DEVELOPMENT OF ITS LATEST EXPERIMENTAL DRUG AGAINST AIDS BASED ON RESULTS OF SEVERAL SMALL INITIAL TESTS OF THE DRUG IN HUMAN SUBJECTS MEDICAL RESEARCHERS FAMILIAR WITH THE DRUG TRIALS DESCRIBED THE RESULTS AS ENCOURAGING BUT VERY PRELIMINARY IN RECENT WEEKS HOWEVER MERCK HAS MOVED AHEAD IN STUDYING THE DRUG ENROLLING AIDS PATIENTS AT FIVE US MEDICAL CENTERS THE DRUG UNDER STUDY CALLED L735524 IS PART OF A CLASS OF EXPERIMENTAL MEDICINES THAT HAVE GENERATED MUCH SCIENTIFIC INTEREST OVER THE PAST FIVE YEARS THE DRUG BLOCKS THE ACTIVITY OF AN ENZYME CALLED PROTEASE THAT IS CRITICAL TO REPLICATION OF HIV THE VIRUS THAT CAUSES ACQUIRED IMMUNE DEFICIENCY SYNDROME SCIENTISTS BELIEVE THAT DEACTIVATING THE ENZYME WILL BLOCK HIV FROM SPREADING BEYOND AN INFECTED CELL OVER THE PAST FEW YEARS ABOUT A HALFDOZEN COMPANIES HAVE BEEN RACING TO PRODUCE A VIABLE PROTEASEBLOCKING DRUG WHILE THE COMPANIES HAVE CREATED NUMEROUS PROTOTYPES THAT WORKED WELL IN THE TEST TUBE MOST OF THESE DRUG CANDIDATES WERE INACTIVATED BY THE BODY BEFORE THEY COULD CIRCULATE IN THE BLOODSTREAM IN AMOUNTS LARGE ENOUGH TO MUTE VIRAL REPLICATION BUT MERCK'S NEWEST ENTRY WHICH IT FIRST PUT INTO HUMANS LAST SPRING APPEARS TO HAVE OVERCOME MANY OF THE PROBLEMS THAT PLAGUED EARLIER EFFORTS AT A SCIENTIFIC AIDS MEETING OUTSIDE WASHINGTON LAST WEEK HEDDI TEPPLER OF JEFFERSON MEDICAL COLLEGE IN PHILADELPHIA REPORTED RESULTS OF SEVERAL SMALL TRIALS LASTING LESS THAN TWO WEEKS THOSE TESTS FOUND THAT DAILY ORAL DOSES OF THE DRUG REACHED LEVELS IN THE BLOOD CONSIDERED HIGH ENOUGH TO AFFECT THE VIRUS MOREOVER DR TEPPLER SAID IN ONE 12DAY STUDY OF 10 AIDS PATIENTS USE OF THE DRUG REDUCED THE AMOUNT OF MEASURABLE VIRUS IN PATIENTS' BLOODSTREAMS BY 70 THAT'S ABOUT THE SAME RESULT SEEN IN TWO OTHER PATIENTS IN THE STUDY WHO WERE TREATED ONLY WITH AZT THE DRUG COMMONLY USED FOR AIDS PATIENTS AND MARKETED BY WELLCOME PLC OF BRITAIN DR TEPPLER SAID THE RESULT IS PROMISING BECAUSE IT SHOWS THAT BLOCKING THE PROTEASE ENZYME IN HUMANS CAN COUNTER VIRAL REPLICATION BUT DR TEPPLER SAID THE TEST WAS TOO SHORT TO DETERMINE WHETHER THE DRUG WILL BE USEFUL MERCK OFFICIALS ALSO ARE BEING CAUTIOUS WORRIED THAT THE NEW LONGER STUDIES CURRENTLY UNDER WAY MAY FIND THAT USING THE DRUG WILL PRODUCE A RESISTANT STRAIN OF THE VIRUS SEVERAL YEARS AGO MERCK WAS STUNNED WHEN ANOTHER KIND OF POTENTIAL AIDS DRUG SWIFTLY PRODUCED RESISTANCE WHEN TESTED IN PATIENTS MERCK'S NEWEST DRUG IS ONE OF SEVERAL PROTEASE BLOCKERS UNDER SERIOUS CONSIDERATION VERTEX PHARMACEUTICALS INC A SMALL COMPANY IN CAMBRIDGE MASS ALSO HAS PRODUCED A POTENTIALLY USEFUL PROTEASE DRUG BUT IT WON'T BE TESTED IN HUMANS UNTIL THIS SPRING LATE LAST WEEK WELLCOME ANNOUNCED THAT IT ACQUIRED THE RIGHTS TO DEVELOP AND MARKET THE VERTEX DRUG IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY MERCK SHARES CLOSED AT 33625 UP 50 CENTS THE COMPANY IS BASED IN WHITEHOUSE STATION NJ 9312200111 931220 DIVIDEND NEWS GELMAN SCIENCES INC GELMAN SCIENCES INC DECLARED A 3FOR2 STOCK SPLIT PAYABLE DEC 28 TO SHARES OF RECORD DEC 8 THE SPLIT INCREASES THE TOTAL NUMBER OF SHARES OUTSTANDING TO EIGHT MILLION GELMAN OF ANN ARBOR MICH RESEARCHES DEVELOPS AND MAKES PRODUCTS USED IN HEALTHCARE FACILITIES 9312200110 931220 LEISURE & ARTS THEATER VICKY ELIZA AND HONEST ABE BY EDWIN WILSON NEW YORK THE RED SHOES A NEW 8 MILLION MUSICAL OPENED LAST THURSDAY AND CLOSED YESTERDAY ONLY THREE DAYS LATER HOW COULD THIS HAPPEN AS I WATCHED THE BEGINNING OF THE RED SHOES I HAD TO SHAKE MYSELF TO MAKE CERTAIN I WAS AT THE GERSHWIN THEATRE AND NOT IN A MOVIE PALACE BECAUSE THE LINES IN THE FIRST FEW SCENES OF THE PLAY ARE TAKEN WORD FOR WORD FROM THE WELLKNOWN 1948 FILM ON WHICH IT IS BASED AS THE MUSICAL PROGRESSES OTHER DIALOGUE CREEPS IN BUT IT RARELY STRAYS FAR FROM THE FILM THE FIRST QUESTION IS WHY A STAGE MUSICAL WOULD STICK SO CLOSE TO A MOVIE RATHER THAN STRIKE OUT ON ITS OWN THE RED SHOES TAKES PLACE IN THE EARLY 1920S YOUNG VICTORIA PAGE MARGARET ILLMANN WHO WANTS MORE THAN ANYTHING IN LIFE TO BE A GREAT DANCER JOINS THE BALLET COMPANY OF BORIS LERMONTOV STEVE BARTON THERE SHE MEETS AN ASPIRING COMPOSER JULIAN CRASTER HUGH PANARO WITH WHOM SHE FALLS IN LOVE CAUGHT BETWEEN THE EXCESSIVE DEMANDS OF LERMONTOV AND JULIAN SHE EVENTUALLY KILLS HERSELF THE MUSIC FOR THE RED SHOES WAS WRITTEN BY JULE STYNE WHO WAS RESPONSIBLE FOR SUCH ROUSING SHOWS AS GYPSY AND FUNNY GIRL HERE HOWEVER THE SONGS ARE UNINSPIRED ON TOP OF THIS THE PLOT OFTEN JUMPS FROM ONE MUSICAL NUMBER TO THE NEXT AS IF SOMEONE HAD PUSHED A FASTFORWARD BUTTON THE MOVIE PARLANCE FOR ELIMINATING TALK AND MOVING TO ACTION IS CUT TO THE CHASE IN THE RED SHOES THE RULE IS CUT TO THE BALLET BUT THIS IS PROBABLY JUST AS WELL BECAUSE THE DANCES ARE ITS GREATEST ASSET AS VICKY MS ILLMANN A PRINCIPAL DANCER WITH THE NATIONAL BALLET OF CANADA IS ENCHANTING A LITHE BEAUTIFUL WOMAN SHE IS AN EXCITING PRESENCE AS WELL AS AN EXCEEDINGLY GRACEFUL AND CHARMING DANCER THE OTHER HERO WHO COMES TO THE RESCUE IS CHOREOGRAPHER LAR LUBOVITCH THE DANCES MR LUBOVITCH CREATED FOR MS ILLMANN AS WELL AS THE LIVELY CORPS DE BALLET DISPLAY AN ADMIRABLE VIGOR AND INVENTIVENESS AS WELL AS STYLE WHEN THESE NUMBERS ARE SET AGAINST THE OPULENT EVOCATIVE SCENERY OF HEIDI LANDESMAN AND LIGHTING OF KEN BILLINGTON THE WORLD OF CLASSICAL BALLET COMES PULSATINGLY TO LIFE CATHERINE ZUBER'S SUMPTUOUS COSTUMES ARE AN ADDED TREAT UNFORTUNATELY NEITHER THE DANCES NOR THE VISUAL SPLENDORS COULD OFFSET THE PRODUCTION'S OTHER PROBLEMS AND THUS IT SUFFERED ITS HASTY DEMISE JUST PRIOR TO THE RED SHOES ANOTHER MUSICAL A REVIVAL OF MY FAIR LADY OPENED AT THE VIRGINIA THEATRE THE LERNER AND LOEWE GEM HAS RECEIVED A REVISIONIST TREATMENT FROM DIRECTOR HOWARD DAVIES AND DESIGNER RALPH KOLTAI WHO HAVE ATTEMPTED TO ELIMINATE SOME OF THE SENTIMENTALITY AND ELEGANCE FROM THE PIECE IN ORDER TO ACHIEVE A HARDEDGED QUALITY PROF HIGGINS'S STUDY FOR EXAMPLE IS NOT A COZY BOOKLINED LIBRARY BUT A ROOM WITH A STARK 12FOOTHIGH PHRENOLOGICAL HEAD IN ONE CORNER AND IN ANOTHER AN OVERSIZED RUBE GOLDBERG COLLECTION OF GLASS TUBES MEANT TO REPRESENT HIGGINS'S PHONOGRAPHIC EQUIPMENT SOME OF THIS WORKS QUITE WELL IN THE SCENE AT ASCOT FOR INSTANCE THE SPECTATORS ARE DRESSED IN THE USUAL EDWARDIAN FINERY BUT HALF OF THEM ARE SUSPENDED ABOVE THE STAGE IN MIDAIR IT IS A STARTLING BUT EFFECTIVE STAGE PICTURE THE CHARACTERS TOO HAVE BEEN GIVEN A FRESH LOOK THOUGH THE COL PICKERING OF PAXTON WHITEHEAD IS MARVELOUSLY TRADITIONAL HIGGINS IS PLAYED BY RICHARD CHAMBERLAIN AS A STOLID NONONSENSE FIGURE WHO ESCHEWS CHARM FOR DIRECTNESS EVEN MORE OF A DEPARTURE IS THE ELIZA OF MELISSA ERRICO MOST ELIZAS INCLUDING JULIE ANDREWS ONSTAGE AND AUDREY HEPBURN IN THE FILM COME ACROSS AS REFINED YOUNG LADIES WHO HAVE TEMPORARILY PUT A LITTLE DIRT ON THEIR FACES AND AFFECTED A COCKNEY ACCENT MS ERRICO THOUGH HAS MORE THAN A LITTLE OF THE GUTTERSNIPE IN HER HER ATHLETIC OUTSPOKEN ELIZA NEVER LEAVES BEHIND HER HUMBLE ORIGINS EVEN WHEN SHE CONQUERS HIGH SOCIETY IT IS A TRULY ORIGINAL AND ALTOGETHER CAPTIVATING PERFORMANCE BY AN ACTRESS WITH A WONDERFUL VOICE MR DAVIES HAS LEFT SOME PARTS OF THE MUSICAL PRETTY MUCH THE WAY THEY ALWAYS WERE THE SCENES WITH ALFRED P DOOLITTLE AS CHOREOGRAPHED BY DONALD SADDLER STILL HAVE THAT FAMILIAR GOODNATURED SWAGGER PLAYING DOOLITTLE IS JULIAN HOLLOWAY THE SON OF STANLEY HOLLOWAY WHO CREATED THE ROLE AND HAPPILY HE HAS CAPTURED THE ELAN OF THE BRITISH MUSICHALL STRUT TO PERFECTION ONE THING THAT BOTH THE RED SHOES AND MY FAIR LADY SHARED IS A GESTATION PERIOD WITH MORE THAN THE USUAL TRAUMAS MARSHA NORMAN WHO WROTE THE BOOK FOR THE RED SHOES AND SERVED AS COLYRICIST HAD ORIGINALLY WRITTEN THE STORY FROM THE YOUNG BALLERINA'S POINT OF VIEW BUT THE PRODUCER MARTIN STARGER WANTED IT TO ADHERE MORE CLOSELY TO THE FILM VERSION ALSO DURING REHEARSALS BOTH THE DIRECTOR AND THE LEADING MAN WERE REPLACED TO ACCOMMODATE THESE CHANGES THE OPENING WAS POSTPONED FOR TWO WEEKS AND SONGS WERE ADDED AND SUBTRACTED RIGHT UP TO THE END IN THE CASE OF MY FAIR LADY THERE WAS A STRUGGLE BETWEEN MR DAVIES WHO FAVORED HIS REINTERPRETATION AND THE LAWYER FOR THE ESTATE OF ALAN J LERNER WHO WANTED THE PRODUCTION TO BE EXACTLY THE WAY IT WAS IN 1956 THIS TUG OF WAR WENT ON THROUGHOUT AN EIGHTMONTH CROSSCOUNTRY TOUR AND INCLUDED CALLING IN DIRECTOR TOMMY TUNE TO GIVE THE SHOW MORE PACE AND DESIGNER HEIDI LANDESMAN THE SAME MS LANDESMAN WHO DESIGNED THE RED SHOES TO SOFTEN MR KOLTAI'S SCENERY MOUNTING A MAJOR MUSICAL IT WOULD SEEM HAS BECOME MORE DIFFICULT THAN EVER ONE STRAIGHT PLAY WORTH NOTING OPENED RECENTLY AT LINCOLN CENTER THEATER ABE LINCOLN IN ILLINOIS ROBERT SHERWOOD'S 1938 DRAMA DEPICTING LINCOLN'S YEARS BEFORE HE LEFT SPRINGFIELD FOR THE WHITE HOUSE THIS SHOW IS AS MUCH A PAGEANT AS A PLAY BUT THE CURRENT PRODUCTION HAS SEVERAL POINTS TO RECOMMEND IT ONE IS A STRONG CAST AND ANOTHER IS IMPRESSIVE SCENERY BUT MOST OF ALL THERE IS THE PERFORMANCE OF SAM WATERSTON AS LINCOLN WHO INVESTS THE FUTURE PRESIDENT WITH A WINNING DOWNHOME WISDOM AND SELFDEPRECATING HUMOR 9312200109 931220 ANNENBERG PLEDGES GRANT FOR EDUCATION REFORM WASHINGTON ALTHOUGH ALL THE RECIPIENTS HAVEN'T BEEN DETERMINED PHILANTHROPIST WALTER H ANNENBERG PLEDGED A RECORDSETTING 500 MILLION OVER FIVE YEARS TO REFORM AMERICAN PUBLIC EDUCATION MR ANNENBERG FORMALLY ANNOUNCED THE GIFT THE LARGEST EVER BENEFITING PUBLIC EDUCATION AT A WHITE HOUSE CEREMONY ATTENDED BY PRESIDENT CLINTON FRIDAY AND CALLED IT A CHALLENGE TO THE NATION THE INITIAL BENEFICIARIES INCLUDE A SCHOOLREFORM INSTITUTE AT BROWN UNIVERSITY THAT WILL RECEIVE 50 MILLION IN 1994 AND 5 MILLION IN 1995 THE NONPROFIT NEW AMERICAN SCHOOLS DEVELOPMENT CORP A MODEL SCHOOLDEVELOPMENT PROGRAM THAT WILL GET 50 MILLION AND THE NONPROFIT EDUCATION COMMISSION OF THE STATES WHICH WILL RECEIVE 15 MILLION TO SPREAD SCHOOLREFORM DESIGNS THROUGHOUT THE COUNTRY THE GIFT WAS DESCRIBED AS A CHALLENGE GRANT ALTHOUGH AN OFFICIAL AT BROWN UNIVERSITY SAID IT WON'T NECESSARILY REQUIRE MATCHING GRANTS BY RECIPIENTS BUT DEMONSTRATIONS OF COMMITMENT AND SUPPORT VARTAN GREGORIAN BROWN'S PRESIDENT WILL ADVISE THE ANNENBERG FOUNDATION ON DOLING OUT THE REMAINING FUNDS WITH RECIPIENTS TO BE DETERMINED BY JUNE THE MONEY WILL BE USED TO SUPPORT TEACHERS PUPILS SCHOOLS AND SCHOOL SYSTEMS THROUGHOUT THE COUNTRY THAT ARE MAKING EARNEST AND WELLDESIGNED EFFORTS TO CHANGE THE WAY CHILDREN ARE EDUCATED AND TO COLLEGES UNIVERSITIES AND OTHER AGENCIES THAT ARE COOPERATING IN THE TASK ACCORDING TO A NEWS RELEASE 9312200108 931220 FLORIDA TELLS MET LIFE TO HALT BONUSES UNTIL IT RESERVES FUNDS FOR POSSIBLE FINES BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL FLORIDA HAS TOLD METROPOLITAN LIFE INSURANCE CO TO HOLD OFF PAYING EXECUTIVE BONUSES UNTIL IT SETS UP RESERVES TO COVER POSSIBLE FINES AND CLAIMS ARISING FROM INVESTIGATIONS INTO THE COMPANY'S SALES PRACTICES ALTHOUGH THE AMOUNT OF MONEY TO BE SET ASIDE IS UNCLEAR FLORIDA'S ACTION COULD END UP DELAYING OR EVEN JEOPARDIZING BONUSES FOR SOME OF THE THOUSANDS OF MET LIFE EXECUTIVES ACROSS THE COUNTRY THE INSURER TYPICALLY PAYS MILLIONS OF DOLLARS IN BONUSES EVERY SPRING NEW YORKBASED MET LIFE SAYS IT MUST STUDY FLORIDA'S ORDER BEFORE IT CAN DETERMINE WHETHER TO PAY THE BONUSES WHILE CALLING THE ACTION LUDICROUS AND A PLOY TO GRAB HEADLINES A MET LIFE SPOKESMAN SAID THE COMPANY WILL COMPLY WITH ANY LAWFUL ORDER MET LIFE SAYS IT FIRST WANTS TO DETERMINE WHETHER FLORIDA HAS THE AUTHORITY TO MAKE SUCH A DEMAND FLORIDA HAS ACCUSED MET LIFE IN AN ADMINISTRATIVE ORDER OF USING MISLEADING TACTICS IN THE SALE OF LIFEINSURANCE POLICIES SEVERAL OTHER STATES ARE ALSO INVESTIGATING MET LIFE'S SALES PRACTICES FLORIDA ARGUES THAT BECAUSE MET LIFE IS OWNED BY POLICYHOLDERS RATHER THAN STOCKHOLDERS IT WOULD BE UNFAIR TO TAKE MONEY FROM POLICYHOLDERS TO PAY POSSIBLE FINES AND CLAIMS ARISING FROM THE INVESTIGATIONS THE MONEY IT IS ARGUED SHOULD FIRST COME FROM EXECUTIVES AS WELL AS ANY SALESMEN WHO MAY BE CHARGED IN THE MATTER FLORIDA SAID ITS ORDER APPLIES NOT JUST TO FINES IT MIGHT BRING BUT ALSO TO FINES AND CLAIMS THAT COULD BE BROUGHT BY OTHER STATES AND INDIVIDUAL POLICYHOLDERS WE EXPECT THEM TO RESERVE FOR EVERYTHING SAID A SPOKESMAN FOR THE FLORIDA INSURANCE DEPARTMENT UNDER THE STATE ORDER MET LIFE COULD PAY BONUSES FROM ANY MONEY LEFT AFTER PAYING WHAT IS DUE POLICYHOLDERS MET LIFE THE COUNTRY'S SECONDLARGEST INSURER HAS A NET WORTH OF MORE THAN 5 BILLION AND SHOULD BE ABLE TO EASILY PAY WHATEVER CLAIMS COME OUT OF THE INVESTIGATIONS BUT ACCORDING TO MET LIFE THE VAGUE LANGUAGE OF THE FLORIDA ORDER MAKES IT IMPOSSIBLE TO DETERMINE IMMEDIATELY WHETHER IT CAN PAY THE BONUSES FLORIDA ORIGINALLY WAS INVESTIGATING CHARGES THAT MET LIFE'S TAMPA OFFICE IN A SALES PROGRAM TARGETED TO REGISTERED NURSES FRAUDULENTLY SOLD LIFE INSURANCE BY OMITTING ANY MENTION OF INSURANCE AND INSTEAD CALLING POLICIES RETIREMENT ACCOUNTS INSURANCE OFFERS AN INVESTMENT COMPONENT BUT CARRIES A HIGH SALES CHARGE AND FORCES BUYERS TO WAIT YEARS BEFORE REALIZING A DECENT INVESTMENT RETURN MET LIFE HAS AGREED TO REFUND MONEY TO THE 18000 CUSTOMERS WHO BOUGHT INSURANCE THROUGH THE PROGRAM AND HAS ALREADY REPAID 7 MILLION BUT FLORIDA'S INVESTIGATION HAS SINCE BEEN BROADENED TO INCLUDE SALES PROGRAMS TARGETED TO OTHER GROUPS INCLUDING SMALL BUSINESS OWNERS IN ADDITION EVIDENCE HAS SURFACED IN RECENT WEEKS LINKING MET LIFE'S HOME OFFICE IN NEW YORK WITH THE ACTIVITIES IN FLORIDA MET LIFE CONCEDES ITS NEW YORK PRINT SHOP PRINTED SOME OF THE QUESTIONABLE SALES LITERATURE AND THAT SENIOR VICE PRESIDENT RICHARD MAUER HAD A HAND IN ITS CREATION BUT SAYS THE SALES MATERIALS HAD ONLY SMALL DISTRIBUTION THE NEW YORK STATE INSURANCE DEPARTMENT IS NOW INVESTIGATING THE MATERIALS THE DEPARTMENT SAID IT IS LOOKING AT TWO SALES BROCHURES THAT TALK ABOUT LIFE INSURANCE AS A RETIREMENT ACCOUNT WITHOUT MENTIONING THE WORD INSURANCE OTHER STATES ARE STEPPING UP THEIR OWN INVESTIGATIONS OF MET LIFE THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS A GROUP REPRESENTING INSURANCE COMMISSIONERS FROM ALL 50 STATES RECENTLY SET UP A TASK FORCE TO COORDINATE INVESTIGATIONS AND POSSIBLE PENALTIES STATES THAT HAVE ASKED TO PARTICIPATE IN ADDITION TO FLORIDA AND NEW YORK ARE CALIFORNIA ILLINOIS IOWA LOUISIANA MASSACHUSETTS NEVADA NORTH CAROLINA VIRGINIA AND WEST VIRGINIA IN WASHINGTON DEMOCRATIC SEN HOWARD METZENBAUM OF OHIO HAS ASKED THE SECURITIES AND EXCHANGE COMMISSION TO GET INVOLVED IN A LETTER BEING SENT TODAY TO SEC CHAIRMAN ARTHUR LEVITT HE ARGUES THAT MET LIFE'S SALES PRACTICES APPEAR TO VIOLATE FEDERALSECURITIES LAW HE ALSO ASKS THE COMMISSION TO INVESTIGATE AND SEEKS ADVICE ON HOW TO IMPROVE REGULATION OF THE INSURANCE INDUSTRY LAST MONTH MR METZENBAUM INTRODUCED LEGISLATION TO CREATE A COMMISSION SIMILAR TO THE SEC TO REGULATE INSURANCE 9312200107 931220 WHO'S NEWS ABB ASEA BROWN OFFICIAL IS SAID TO BE PICK AT VOLVO SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM AB VOLVO'S MAJOR INSTITUTIONAL SHAREHOLDERS HAVE TAPPED BERTOLOF SVANHOLM A 58YEAROLD EXECUTIVE AT ABB ASEA BROWN BOVERI LTD TO BECOME THE SWEDISH AUTO MAKER'S NEW CHAIRMAN PEOPLE FAMILIAR WITH THE SITUATION CONFIRMED THE NOMINATION WAS DISCLOSED IN STOCKHOLM NEWSPAPER FINANSTIDNINGEN BOTH ABB AND VOLVO DECLINED COMMENT AND MR SVANHOLM COULDN'T BE REACHED DURING THE WEEKEND BROAD SUPPORT FROM MAJOR SHAREHOLDERS HOWEVER MAKES IT VIRTUALLY CERTAIN THAT MR SVANHOLM WILL WIN ELECTION AT VOLVO'S EXTRAORDINARY GENERAL MEETING JAN 19 THE OFFICIAL ANNOUNCEMENT OF HIS NOMINATION COULD COME AS EARLY AS TODAY REPRESENTATIVES OF MAJOR SHAREHOLDERS SAID MR SVANHOLM WOULD SUCCEED VOLVO'S LONGTIME CHAIRMAN PEHR GYLLENHAMMAR WHO RESIGNED WHEN THE AUTO MAKER'S BOARD CALLED OFF A PROPOSED MERGER WITH RENAULT SA OF FRANCE THIS MONTH MR SVANHOLM SPENT LONG STINTS AT CHEMICAL GROUP KEMA NOBEL AB AND CONSUMER GOODS CONCERN SWEDISH MATCH AB BEFORE JOINING ABB'S SWEDISH PARENT ASEA AB IN 1982 9312200106 931220 RAFI KAHN ENDS EFFORT TO GET CONTROL OF ICN THROUGH SOLICITATION COSTA MESA CALIF STOCKBROKER RAFI KHAN HAS DROPPED PLANS FOR A CONSENT SOLICITATION TO ACQUIRE CONTROL OF ICN PHARMACEUTICALS INC BUT WILL STILL PROCEED WITH PLANS FOR A PROXY FIGHT AT THE FEB 1 ANNUAL MEETING THIS MONTH FEDERAL JUDGE JOHN SPRIZZO IN NEW YORK GRANTED ICN'S REQUEST TO BLOCK MR KHAN'S ATTEMPT TO TAKE CONTROL OF THE COMPANY AFTER FINDING THAT MR KHAN DEFRAUDED THE BRITISH GOVERNMENT IN A 1986 SECURITIES SCHEME THE JUDGE VOIDED CONSENT CARDS THAT SHAREHOLDERS ALREADY HAD MAILED TO MR KHAN JUST AS HE WAS FACED WITH A DEADLINE YESTERDAY TO COMPLETE THE SOLICITATION THE SOLICITATION TO UNSEAT CURRENT MANAGEMENT WOULD HAVE REQUIRED APPROVAL BY HOLDERS OF A MAJORITY OF THE PHARMACEUTICAL COMPANY'S TOTAL SHARES OUTSTANDING BECAUSE THE JUDGE INVALIDATED THE CONSENT CARDS WE FELT WE DIDN'T HAVE TIME TO GATHER SUFFICIENT CARDS BEFORE THE DEC 19 DEADLINE SAID BOB HASDAY MR KHAN'S ATTORNEY HE SAID MR KHAN RESERVES THE RIGHT TO RECOMMENCE A CONSENT SOLICITATION AT ANY TIME AND WILL PROCEED WITH THE PLANNED PROXY FIGHT AT THE ANNUAL MEETING HOWEVER IN A PROXY FIGHT MR KHAN WOULD ONLY NEED A MAJORITY OF SHARES VOTED AT THE ANNUAL MEETING A SPOKESMAN FOR ICN SAID OF MR KHAN'S ATTEMPTS WE THINK HE'S JUST SMOKE AND MIRRORS 9312200105 931220 12 DAYS OF CHRISTMAS FOR THOSE WHO HAVE EVERYTHING MONTHLY SPUDS AND UNDERWEAR BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL FOR THE GIFT THAT KEEPS ON GIVING WHY NOT ENROLL SOMEONE IN THE BOXERSHORTSOFTHEMONTH PROGRAM OR THE POTATOOFTHEMONTH CLUB WHILE DR JOSIAH FRIEDLANDER IS STITCHING UP PATIENTS IN A CALIFORNIA HOSPITAL EMERGENCY ROOM HIS COMPANY JOSIAH CLOTHING IS TAKING ORDERS FOR BOXER SHORTS GIFT SUBSCRIPTIONS START AT 35 FOR A THREEMONTH SUBSCRIPTION NEARLY HALF HIS CUSTOMERS ARE WOMEN BUYING FOR THEMSELVES OR OTHER WOMEN DR FRIEDLANDER SAYS THE MOST POPULAR COTTON PRINTS SUNFLOWERS AND ASTROLOGICAL SIGNS EVERYTHING'S TASTEFUL HE INSISTS THEY DON'T GLOW IN THE DARK ACROSS THE CONTINENT LASTMINUTE SHOPPERS ARE ORDERING POTATOES OF THE MONTH FROM THE NEW PENNY FARM IN PRESQUE ISLE ME FOR 136 THE FARM WILL SHIP FIVE POUNDS OF A DIFFERENT TUBER EIGHT TIMES A YEAR THE OTHER FOUR MONTHS THEY'RE IN THE GROUND OWNER CHRIS HOLMES SAYS HE LOOKS FOR HARDTOGETVARIETIES BELRUS CARIBE YUKON GOLD AND PURPLE CHIEF FOR EXAMPLE HE GATHERS SEEDS FROM FELLOW FARMERS IN MAINE AND NEIGHBORING CANADA AND WHILE 340 A POUND MORE WEST OF THE MISSISSIPPI MAY SOUND STEEP FOR SPUDS MR HOLMES SAYS HIS BUSINESS IS GROWING NICELY THEN THERE'S HELEN DOORDAN'S COOKIEOFTHEMONTH OPERATION IN AVONDALE PA BUYERS GET A DIFFERENT ONEPOUND SHIPMENT EACH MONTH RANGING FROM SHORTBREAD HEARTS IN FEBRUARY TO ICEBOX LEMON BARS IN JULY AT 16 A MONTH IT'S THE MOST TASTEFUL WAY TO STAY IN TOUCH SHE SAYS OTHER GIVING GOURMANDS ARE CALLING THE CALIFORNIA WINE CLUB IN VENTURA CALIF WHICH THIS MONTH IS SHIPPING A PAIR OF ITALIAN VARIETALS THE CLUB SENDS OUT TWO BOTTLES OF BOUTIQUE WINES MONTHLY AT 30 A CRACK CUSTOMERS ALSO RECEIVE UNCORKED A NEWSLETTER THAT DESCRIBES THE SELECTION CLIENTS INCLUDE BANKERS SURGEONS MOVIE STARS AND JUDGES SAYS THE COMPANY'S COOWNER BRUCE BORING MR BORING ONCE ADVERTISED HIS CLUB IN COSMOPOLITAN MAGAZINE BUT FOUND HIS AD NEXT TO ONE FOR A PANTY OF THE MONTH NOW HE STICKS TO FOOD AND WINE PUBLICATIONS 9312200104 931220 INTERNATIONAL JAPAN'S LIMITS ON EXPORTS OF AUTOS TO US MAY END SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN IS LIKELY TO END ITS VOLUNTARY RESTRAINTS ON AUTOS AND MACHINETOOL EXPORTS TO THE US TO COMPLY WITH THE NEW GLOBAL TRADE AGREEMENT A GOVERNMENT SPOKESMAN SAID WASHINGTON OFFICIALS SAID THE US ISN'T LIKELY TO OPPOSE THE LIFTING OF JAPAN'S RESTRAINT ON AUTO EXPORTS PROVIDED THE TWO NATIONS REACH AGREEMENT OVER TRADE IN AUTOS AND AUTO PARTS ALTHOUGH JAPAN LIMITS EXPORTS OF AUTOS MACHINE TOOLS AND TEXTILES TO MINIMIZE FRICTION WITH THE US THESE MEASURES ARE FORBIDDEN BY THE JUSTCOMPLETED URUGUAY ROUND OF TRADE TALKS SAID A FOREIGN MINISTRY SPOKESMAN IN PRINCIPLE THESE BILATERAL MEASURES ARE TO BE ELIMINATED WITHIN FOUR YEARS AFTER THE COMING INTO EFFECT OF THE OVERALL AGREEMENT IN 1995 HE SAID THAT MAY BE A MOOT POINT HOWEVER BECAUSE JAPANESE EXPORTS HAVE BEEN CRIMPED BY THE APPRECIATION OF THE YEN WHICH MAKES THE COUNTRY'S PRODUCTS UNCOMPETITIVE OVERSEAS MOREOVER JAPANESE MANUFACTURERS HAVE BEEN SHIFTING PRODUCTION OVERSEAS SPEAKING FOR THE INDUSTRY IN GENERAL IT WOULD HARDLY MATTER NOW IF YOU GOT RID OF THE VOLUNTARY EXPORT RESTRAINTS SAID TADASHI KOTAKE OF THE JAPAN AUTOMOBILE MANUFACTURERS ASSOCIATION THEY'VE LOST THEIR MEANING 9312200103 931220 POLITICS & POLICY KENNEDY FINDING RENEWED ENERGY PREPARES TO TAKE HIS PLACE IN THE BATTLE FOR HEALTH CARE BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AFTER THREE DECADES IN THE SENATE EDWARD KENNEDY HAS COME LIKE JOSHUA TO THE GATES OF HEALTHCARE REFORM IT IS BOTH A LONGSOUGHT BATTLE AND A CHANCE FOR RENEWAL FOR THE MASSACHUSETTS DEMOCRAT BUT TO WIN HE MUST FIRST SHED THE PATRICIAN LIBERAL IMAGE OF HIS PAST AND RECONNECT WITH VOTERS LOOKING FOR A CALM VOICE TO LEAD THEM THROUGH THE CHANGES AHEAD THAT CHALLENGE IS THE SAME WHETHER ON THE SENATE FLOOR OR AT BACKWATER BREAKFASTS FOR HIS REELECTION CAMPAIGN NEXT YEAR HE'S RUNNING LIKE A BRANDNEW KID SAYS JOSEPH MOAKLEY THE BOSTONBRED CHAIRMAN OF THE HOUSE RULES COMMITTEE HE'S IN PLACES SOME STATE REPS DON'T EVEN GO IF MR KENNEDY'S SLAIN BROTHERS ARE REMEMBERED AS FOREVER YOUNG HE HAS LIVED TO SEE THE GAP BETWEEN THE ROMANCE AND REALITY OF HIS FAMILY'S LEADERSHIP JOHN KENNEDY'S VOW TO PAY ANY PRICE TO PROMOTE DEMOCRACY LED TO THE PEACE CORPS BUT ALSO TO VIETNAM NOW THE HEALTH DEBATE DEMANDS LESS PASSION FROM THE SURVIVING BROTHER AND MORE OF THE KNOWLEDGE AND PRAGMATIC SKILLS HE HAS ACCUMULATED AS CHAIRMAN OF THE LABOR AND HUMAN RESOURCES COMMITTEE MR KENNEDY IS ALREADY THE LONGESTSERVING SENATOR IN MASSACHUSETTS HISTORY AND MORE THAN EVER CASTS HIMSELF THESE DAYS AS A CHAMPION NOT ONLY OF CAUSES BUT OF THE SENATE ITSELF THE HEALTHCARE LEGISLATION HE SAYS IS UNIQUE IN ALL THE TIME I HAVE BEEN HERE HE ADDS IT IS SORT OF THE TEST OF OUR INSTITUTIONS WHETHER WE AT THIS TIME CAN COME TO GRIPS WITH A COMPLEX DIFFICULT ISSUE WHICH IS OF CENTRAL CONCERN TO ALL THE FAMILIES IN THIS COUNTRY AGE AND ALCOHOL HAVE LEFT THEIR SCARS BUT AT 61 YEARS OLD MR KENNEDY HAS FOUND A NEW PEACE OF MIND IN HIS SECOND MARRIAGE AND WITH A YOUNG PRESIDENT AT THE WHITE HOUSE BILL CLINTON IS THE FIRST DEMOCRATIC PRESIDENT WITH WHOM MR KENNEDY HAS HAD A WARM RELATIONSHIP SINCE JOHN KENNEDY'S ASSASSINATION AND SUBTLE BLACKANDWHITE PHOTOS OF HILLARY RODHAM CLINTON NOW BLEND WITH KENNEDY FAMILY MEMORABILIA IN THE SENATOR'S OFFICE MRS CLINTON'S PROMINENCE IN THE HEALTH DEBATE DOVETAILS WITH THE SENATOR'S EFFORTS TO REACH OUT TO WOMEN ANGERED BY HIS PAST CONDUCT AT A RECENT BOSTON FORUM ATTENDED BY THE FIRST LADY MR KENNEDY SAT PROMINENTLY WITH LOCAL WOMEN STRUGGLING WITH THE HEALTHCARE CRISIS OUTSIDE RADIO ADS FOR A WOULDBE REPUBLICAN CHALLENGER JANET JEGHLIAN SOUGHT TO ISOLATE HIM AS A WASHINGTON POLITICIAN BEHIND AN ELECTIONYEAR RUSH TO REFORM MINDFUL OF THE RISKS DEMOCRATIC WOMEN SENATORS FLEW THIS FALL TO A BOSTON FUNDRAISING EVENT ORGANIZED BY MR KENNEDY'S 39YEAROLD WIFE VICTORIA REGGIE MANY OF THOSE ATTENDING WON ELECTION ONLY LAST YEAR AFTER ATTACKING THE ALLMALE SENATE JUDICIARY COMMITTEE ON WHICH MR KENNEDY SITS FOR ITS HANDLING OF ANITA HILL'S SEXUAL HARASSMENT ALLEGATIONS AGAINST NOWSUPREME COURT JUSTICE CLARENCE THOMAS THE SENATOR HIMSELF WAS REDUCED TO A PAINFUL SILENCE DURING THE HEARINGS BECAUSE OF THE REPORTS OF HIS OWN GOOD FRIDAY BARHOPPING THAT EMERGED DURING THE PALM BEACH FLA RAPE TRIAL OF HIS NEPHEW WILLIAM KENNEDY SMITH MR SMITH WAS ACQUITTED BUT ALL SEEMED FORGIVEN AT THE FUNDRAISING EVENT WHERE MR KENNEDY WAS HAILED AS ONE OF THE GREAT GALAHADS OF THE SENATE IN FACT THIS KENNEDY BROTHER NEVER BELONGED TO CAMELOT HE IS MORE AT HOME WITH THE EARTHIER RHYTHMS OF JOHN BROWN'S BODY STEPHEN VINCENT BENET'S EPIC POEM HE KEEPS A COPY BY HIS BEDSIDE HERE AND IN MASSACHUSETTS AND YEARS AGO WOULD ESCAPE WITH HIS PRESIDENT BROTHER TO CIVIL WAR BATTLEGROUNDS MORE RECENTLY HE HAS STRUCK UP A RELATIONSHIP WITH THE HISTORIAN SHELBY FOOTE AND MR KENNEDY DROPS HIS OWN ACCENT FOR THE SOFTER SOUTHERN TONES OF THE WRITER DESCRIBING A DOOMED CHARGE AT FREDERICKSBURG VA BY NEW YORK'S IRISH BRIGADE THEY ADVANCED ON THE SIXTH WAVE CANTEENS EMPTY FORCED MARCH WALKED OVER WOUNDED AND MANGLED FACED GRAPE 2200 ADVANCED 126 SHOWED UP AT REVEILLE THE SENATOR'S HERO IS ANOTHER JOSHUA JOSHUA CHAMBERLAIN THE INFANTRY COLONEL FROM MAINE WHO WON FAME AT GETTYSBURG HIS ABILITY TO INSPIRE AND ATTACK IN A QUICKREACTION FASHION MAKE HIM A MODEL OF WHAT MR KENNEDY WOULD LIKE TO BE HIMSELF AS A LEGISLATOR MUCH ABOUT THE SENATOR REMAINS SHIELDED PROGRAMMED BY EVERANXIOUS AIDES BUT ALONE IN A CAPITOL HALLWAY THE ARROGANCE AND GENUINE SHYNESS CAN DROP AWAY AND FEW BETTER EXPLAIN THE DYNAMICS OF A SENATE VOTE THERE'S NO EASY WAY OF ANTICIPATING IT HE SAYS OF THE MULTIPLE FORCES THAT COME TO PLAY AND WITH A SOLID 107 DEMOCRATIC MAJORITY ON HIS COMMITTEE MR KENNEDY ISN'T RELUCTANT TO ROLL THE DICE ON A MULTITUDE OF ISSUES JUST TO SEE WHAT HAPPENS WHEN A BILL HITS THE FLOOR HE WILL TAKE PAINS TO TRY TO BUILD BIPARTISAN SUPPORT BUT ALSO BRING LOCAL POLITICS TO BEAR ON WOULDBE CONVERTS THIS IS A MAN WHO STILL BELIEVES EDITORIALS COUNT AND READS BACKHOME TOWN NEWSPAPERS ON THE FLOOR HE WILL WITHOUT WARNING SUMMON WITNESSES FROM THE STATES OF RECALCITRANT REPUBLICANS TO BUILD A LITTLE EXTRA POLITICAL PRESSURE BY THE TIME YOU COME TO A MEETING YOU'RE ALREADY WEAK SAYS HIS FRIEND DEMOCRATIC SEN CHRISTOPHER DODD OF CONNECTICUT YOU'RE LOOKING FOR A WAY TO BE ON THE BILL THE HEALTH BILL WILL TEST SEN KENNEDY'S POLITICAL SKILLS AS LITTLE ELSE HAS ALREADY HE IS DEEPLY INVOLVED IN A JURISDICTIONAL FIGHT WITH THE SENATE FINANCE COMMITTEE A FIGHT THAT DEMONSTRATES TWO COMPETING VIEWS OF THE BEST DEMOCRATIC STRATEGY THIS COMING YEAR ONE VIEW WOULD CEDE POWER ON THE BILL TO MODERATE REPUBLICANS AND ARGUES THAT THE FINANCE PANEL IS THE BEST ARENA TO REACH A COMPROMISE THE SECOND VIEW SEN KENNEDY'S DEMANDS A GREATER ROLE FOR THE DEMOCRATIC CAUCUS AND ARGUES THAT A LABOR COMMITTEE BILL WOULD SERVE TO COUNTER THOSE WHO WANT TO SCUTTLE THE BASIC GOALS OF THE ADMINISTRATION'S PLAN MR KENNEDY AND FINANCE CHAIRMAN DANIEL PATRICK MOYNIHAN ARE THE MOST VISIBLE CONTESTANTS BUT THE JOCKEYING MAY ALSO FIT THE DESIGNS OF MAJORITY LEADER GEORGE MITCHELL WHO IS VIEWED WARILY BY THE MOYNIHAN CAMP AND MAY HAVE THE MOST TO GAIN AS A POSSIBLE FUTURE BROKER BETWEEN THE COMPETING CHAIRMEN WATCHING IT ALL IS MR MITCHELL'S PREDECESSOR IN THE LEADERSHIP POST APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD IN HIS CLIMB TO POWER THE WEST VIRGINIAN TOPPLED MR KENNEDY HIMSELF IN A BITTER RACE FOR THE DEMOCRATIC WHIP'S POST AFTER CHAPPAQUIDDICK BUT IN THE YEARS SINCE THE TWO MEN HAVE BECOME QUIET ALLIES IT IS A GREAT STORY OF A COMPLETE SHIFT OF FEELINGS MR BYRD SAYS OF MR KENNEDY I DIDN'T LIKE HIM HE CERTAINLY HAD NO REASON TO LIKE ME BUT I GUESS I WOULD HAVE TO SAY HE IS MY FAVORITE SENATOR TED KENNEDY HE ADDS WOULD HAVE FOUND A PLACE IN ANY SENATE 9312200102 931220 INDUSTRY FOCUS VIDEO GAMES SELL IN RECORD NUMBERS THIS CHRISTMAS LOCKED IN COMBAT SEGA IS CLOBBERING NINTENDO IN CRUCIAL SEGMENT BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN CONSUMERS ARE GOBBLING UP A RECORD NUMBER OF VIDEO GAME PRODUCTS THIS CHRISTMAS SEASON ANALYSTS SAY AS A BLOODY SLUGFEST BETWEEN INDUSTRY GIANTS NINTENDO OF AMERICA AND SEGA OF AMERICA UNLEASHES A TORRENT OF HOT NEW GAMES INTO THE MARKETPLACE THE FRENZY OF ACTIVITY SHOULD HELP PUSH US VIDEO GAME SALES TO AN ALLTIME HIGH OF 572 BILLION FOR THE YEAR UP 19 FROM LAST YEAR'S TOTAL OF 48 BILLION ACCORDING TO THE MARKET RESEARCH FIRM OF GERARD KLAUER MATTISON & CO MEANTIME SEGA APPEARS TO BE CLOBBERING NINTENDO IN THE MOST CRUCIAL SEGMENT OF CHRISTMAS VIDEOGAME SALES WITH ANALYSTS REPORTING SEGA'S MAINSTAY PRODUCTS OUTSELLING NINTENDO'S BY A MARGIN OF 2 TO 1 THE COMPETITION IS SO HEATED THAT BOTH JAPANESE COMPANIES HAVE CRANKED OUT NEW GAMES SUCH AS NINTENDO'S SUPER MARIO ALLSTARS AND SEGA'S NFL FOOTBALL '94 STARRING JOE MONTANA TO SWING CHRISTMAS SALES INTO HIGH GEAR THE TOP SELLER ACCLAIM ENTERTAINMENT INC'S MORTAL KOMBAT IS BEING SOLD IN BOTH NINTENDO AND SEGA VERSIONS AND IS GENERATING SALES OF MORE GAMEPLAYER SYSTEMS ANALYSTS SAY YOU HAVE TWO AGGRESSIVE COMPETITORS ATTACKING A MARKET AGGRESSIVELY AND THAT MAKES THE MARKET GO UP SAYS PAUL RIOUX EXECUTIVE VICE PRESIDENT FOR SEGA REDWOOD CITY CALIF A UNIT OF JAPAN'S SEGA ENTERPRISES LTD ALSO HELPING TO FUEL DEMAND IS THE RECENT ENTRY INTO THE MARKET OF POWERFUL NEW GAME PLAYERS BY ATARI CORP AND 3DO CO SALES OF ATARI'S JAGUAR PLAYER AND 3DO'S INTERACTIVE MULTIPLAYER SYSTEM ARE MINISCULE HOWEVER COMPARED WITH NINTENDO'S AND SEGA'S SYSTEMS WITH ALL THE NEW PRODUCTS THIS IS A VERY VERY SOLID CHRISTMAS BIGGER THAN LAST CHRISTMAS SAYS STEVE ESKENAZI NEWMEDIA ANALYST FOR ALEX BROWN & SONS DECEMBER IS BANANAS ADDS PETER MAIN MARKETING VICE PRESIDENT FOR NINTENDO REDMOND WASH A UNIT OF JAPAN'S NINTENDO CO BOTH NINTENDO AND SEGA REPORT ORDER BACKLOGS AT NINTENDO OFFICIALS SAY THEY ARE BACKORDERED ON THE GAME BOY HANDHELD PLAYER AND ON GAMES THAT RUN ON THE COMPANY'S 16BIT SUPER NINTENDO ENTERTAINMENT SYSTEM SEGA OFFICIALS SAY THEY ARE SELLING OUT OF THEIR RIVAL GAME GEAR HANDHELD PLAYER AND ALSO HAVE AN ORDER BACKLOG ON GAMES THAT RUN ON SEGA'S 16BIT GENESIS PLAYER THE PRODUCT DEMAND IS STRONGER THAN WE THOUGHT SAYS MINORU ARAKAWA NINTENDO OF AMERICA'S PRESIDENT ACCORDING TO MR MAIN SALES HAVE BEEN BUTTRESSED BY THE FACT THAT MANY BIG RETAILERS HAVE SLASHED PRICES OF GAMEPLAYER SYSTEMS THIS SEASON TO COMPETE AMONG THEMSELVES BIG DISCOUNT CHAINS SUCH AS WALMART KMART AND TARGET HE SAYS ARE ALL SELLING NINTENDO'S 16BIT PLAYER CLOSE TO COST IN MARKETS SUCH AS CHICAGO AND MINNEAPOLIS ANOTHER BOOST ANALYSTS SAY IS THE FACT THAT VASTLY IMPROVED TECHNOLOGY FOR DISPLAYING GRAPHICS AND MOTION HAS PRODUCED A NEW GENERATION OF GAMES FAR SUPERIOR TO THE OLD ONES THE ACTION IS BETTER AND THE CHARACTERS LOOK LIKE CHARACTERS SAYS DENISE CARUSO EDITORIAL DIRECTOR FOR FRIDAY HOLDINGS A MEDIA PUBLISHING COMPANY BASED IN NEW YORK ALTHOUGH BOTH NINTENDO AND SEGA ARE BENEFITING FROM THE RESURGENT INTEREST IN VIDEO GAMES ANALYSTS SAY SEGA IS LEADING IN CHRISTMAS SALES OF 16BIT PLAYERS AND GAMES THAT'S QUITE A TURNABOUT FOR ONCEDOMINANT NINTENDO WHICH AS RECENTLY AS THREE YEARS AGO HELD A VIRTUAL MONOPOLY OVER THE US VIDEOGAME MARKET THEN SEGA CAME ROARING IN WITH A POWERFUL RIVAL GAME PLAYER AND HAS SINCE STOLEN SO MUCH SHARE FROM NINTENDO THAT SEGA IS EXPECTED TO SURGE AHEAD IN OVERALL SALES NEXT YEAR NINTENDO IS PROJECTED TO END THE YEAR WITH A 55 SHARE OF THE US VIDEOGAME MARKET COMPARED WITH 43 FOR SEGA ACCORDING TO AN ANALYSIS BY GERARD KLAUER MATTISON WHILE NEXT YEAR SEGA IS PROJECTED TO TAKE THE LEAD WITH A 54 SHARE TO NINTENDO'S 44 SHARE NINTENDO LOST GROUND ANALYSTS SAY BECAUSE IT BECAME TOO COMPLACENT AND REACTED SLOWLY TO THE COMPETITIVE THREAT NINTENDO FOR EXAMPLE WAITED 18 MONTHS BEFORE COMING OUT WITH ITS 16BIT SYSTEM TO COMPETE WITH THE GENESIS NINTENDO MADE A BIG ERROR RESTING ON ITS LAURELS THINKING THEY WOULD PREVAIL JUST BY BEING WHO THEY ARE MS CARUSO SAYS THROUGH THE FIRST NINE MONTHS OF THE YEAR SEGA AND NINTENDO WERE IN A VIRTUAL DEAD HEAT ON SALES OF THE 16BIT GAME PLAYERS THAT NOW DOMINATE THE MARKET ACCORDING TO FIGURES FROM TOY RETAIL SALES TRACKING SERVICE A MARKET RESEARCH ARM OF NPD GROUP WHILE NO FIGURES ARE YET AVAILABLE FOR THE CHRISTMAS SEASON WHICH ACCOUNTS FOR AS MUCH AS ONEHALF OF ANNUAL VIDEOGAME SALES SEGA IS OUTSELLING NINTENDO IN 16BIT HARDWARE AND SOFTWARE ANYWHERE FROM 50 TO 100 IN RETAIL STORES SAYS LEE ISGUR AN ANALYST AT VOLPE WELTY & CO NINTENDO STILL MAINTAINS A LEAD IN SALES OF GAME BOY OVER SEGA'S GAME GEAR AND CONTINUES TO SELL OLDER EIGHTBIT PLAYERS THAT SEGA DOESN'T CARRY HELPING TO DRIVE SEGA'S SALES MR ISGUR SAYS IS THE EXPLOSIVE POPULARITY OF SEGA'S UNCENSORED VERSION OF THE EXPLICITLY VIOLENT MORTAL KOMBAT WHICH LETS VICTORIOUS PLAYERS YANK HEARTS AND SPINAL COLUMNS OUT OF ANIMATED OPPONENTS NINTENDO LICENSED A VERSION OF MORTAL KOMBAT THAT DOES NOT INCLUDE THE EXPLICIT VIOLENCE MR ISGUR SAYS AND AS A RESULT IS LOSING CHRISTMASTIME SALES TO SEGA WALMART FOR EXAMPLE SOLD 40000 SEGA VERSIONS OF THE GAME IN A RECENT TWOWEEK PERIOD COMPARED WITH 28000 OF THE NINTENDO VERSION HE SAYS HOWARD LINCOLN NINTENDO'S SENIOR VICE PRESIDENT ACKNOWLEDGES LOSING TENS OF THOUSANDS OF MORTAL KOMBAT SALES BY NOT RELEASING THE VIOLENT VERSION BUT HE ADDS NINTENDO EXERCISED CORPORATE RESPONSIBILITY I BELIEVE PARENTS ARE FED UP WITH VIOLENCE MR LINCOLN SAYS BOTH COMBATANTS VOW TO COME OUT SWINGING NEXT YEAR WITH EVEN MORE NEW GAMES AND PRODUCTS NINTENDO'S CHIEF AIM APPEARS TO BE AN ATTEMPT TO LEAPFROG A MACHINE OF AT LEAST 32 BITS BEING DEVELOPED BY SEGA AND HITACHI LTD WITH A 64BIT PLAYER IT IS DEVELOPING WITH SILICON GRAPHICS INC NINTENDO PLANS TO LAUNCH THE NEW SYSTEM IN ARCADES LATE NEXT YEAR WITH RELEASE TO HOMES IN 1995 BY THEN 3DO AND ATARI COULD BECOME FORMIDABLE COMPETITORS AND THE SEGA THREAT IS NOT LIKELY TO DIMINISH WHILE THAT'S SURE TO MAINTAIN PRESSURE ON NINTENDO IT ALSO IS BOUND TO HASTEN EVEN MORE GAMES INTO THE MARKET AND TO BOOST INDUSTRY GROWTH FURTHER 9312200101 931220 HUNGARIAN TELEPHONE STAKE IS WON BY DEUTSCHE TELEKOMAMERITECH GROUP BY ERNEST BECK SPECIAL TO THE WALL STREET JOURNAL BUDAPEST A CONSORTIUM TEAMING GERMANY'S DEUTSCHE BUNDESPOST TELEKOM WITH AMERITECH CORP OF THE US WON A FIERCLY CONTESTED TENDER TO BUY 30 OF STATEOWNED HUNGARIAN TELEPHONE CO FOR 875 MILLION A PRICE THAT MAKES THE DEAL EASTERN EUROPE'S BIGGEST PRIVATIZATION THE CONSORTIUM CALLED MAGYARCOM BESTED TWO EQUALLY STRONG RIVAL CONSORTIA LED BY THE ITALIAN AND FRENCH STATE TELEPHONE COMPANIES THAT ALSO COVETED A STAKE IN HUNGARIAN TELEPHONE OR HTC THE REGION'S FIRST STATE TELEPHONE COMPANY TO OPEN ITS NATIONAL NETWORK TO STRATEGIC FOREIGN INVESTORS DEUTSCHE TELEKOM OFFICIALS WERE JUBILANT OVER THE VICTORY ESPECIALLY AFTER THE GERMAN STATE TELEPHONE COMPANY SUFFERED A BITTER LOSS EARLIER THIS YEAR WHEN IT FAILED TO WIN THE CONTRACT TO BUILD HUNGARY'S DIGITAL MOBILEPHONE SYSTEM WE ARE VERY PLEASED AND SATISFIED BECAUSE WE'VE WORKED LONG AND HARD AND PURSUED THIS PROJECT FOR MANY YEARS SAID PAUL GROSSE DIRECTOR OF INTERNATIONAL FINANCE FOR TELEKOM FOLLOWING THE ANNOUNCEMENT YESTERDAY MR GROSSE ADDED THAT GERMANY AND HUNGARY ARE AN EXCELLENT FIT BECAUSE TELEKOM'S EXPERIENCE IN RESTRUCTURING THE FORMER EAST GERMANY'S DECREPIT TELEPHONE NETWORK CAN ALSO BE APPLIED TO HUNGARY MOREOVER HE SAID THAT GERMANY'S STRONG ECONOMIC PRESENCE IN EUROPE WILL HELP LEAD HUNGARY TO CLOSER TIES WITH THE EUROPEAN UNION WHICH BUDAPEST IS EAGER TO JOIN I DON'T THINK ITALY OR FRANCE COULD DO THAT MR GROSSE NOTED SUCH CONSIDERATIONS APPEARED TO HAVE PLAYED A PART IN THE COMPLEX DECISIONMAKING PROCESS IN ADDITION TO HOW MUCH CASH FOREIGN INVESTORS OFFERED AND THEIR TECHNICAL DEVELOPMENT PLANS TO MODERNIZE HUNGARY'S DELAPIDATED NETWORK OFFICIALLY THE EVALUATION COMMITTEE SAID IT WAS LOOKING FOR THE OPTIMUM PROPOSAL WITH THE BEST COMBINATION OF PRICE AND TECHNOLOGY ITALY'S STET INTERNATIONAL SPA LINKED WITH BELL ATLANTIC CORP'S BELL ATLANTIC INTERNATIONAL OF THE US PUT IN A HIGH BID OF 915 MILLION AND PUSHED A FASTTRACK DEVELOPMENT PLAN WHILE THE U S WEST INC FRANCE TELECOM CONSORTIUM PLACED A LOW OFFER OF 830 MILLION STRESSING ITS ROLE AS A LEADER IN CUTTINGEDGE INTERACTIVE TECHNOLOGY REPORTS SAY U S WEST/FRANCE TELECOM TRIED TO RAISE ITS BID BY 60 MILLION AT THE 11TH HOUR BUT THIS WASN'T ALLOWED AFTER FINAL OFFERS WERE IN BOTH LOSING CONSORTIA BELIEVE THE DECISION WAS FAIR AND BASED ON MERIT BUT THERE WAS SOME GRUMBLING BY ITALY'S STET WHICH PUSHED HARD TO STAKE A MAJOR CLAIM IN EASTERN EUROPE AS ITS HOME MARKET REACHES AN ADVANCED STAGE OF TELECOMMUNICATIONS SATURATION OUR PRICE WAS HIGHER AND OUR DEVELOPMENT PLANS WERE MORE FARREACHING CLAIMS RENATO DERIMINI PROJECT MANAGER OF ITALY'S STET I STILL DO NOT UNDERSTAND WHAT THE PRECISE EVALUATION CRITERIA WERE ROSS PARSONS A TELECOMMUNICATIONS CONSULTANT WITH CIT PUBLISHING IN LONDON THINKS DEUTSCHE TELEKOM'S REAL LIFE EXPERIENCE IN EASTERN GERMANY WAS THE FINAL FACTOR THAT TIPPED THE SCALES IN ITS FAVOR TELEKOM HAS BEEN THROUGH ALL THIS BEFORE THEY KNOW THE HEADACHES AND THE HARDSHIPS INVOLVED WITH SUCH UPGRADES AND THIS WAS THEIR TRUMP CARD RATHER THAN MULTIMEDIA TECHNOLOGY HE SAID WHAT HUNGARIANS WANT MOST OF ALL IS A WORKING TELEPHONE AND TELEKOM CAN DEFINITELY PROVIDE THIS PARTIALLY PRIVATIZING HTC IS REGARDED AS THE ONLY SOLUTION TO ITS DEVELOPMENT DILEMMA AND THE BEST WAY TO IMPROVE BACKWARD SERVICES THAT ARE HINDERING HUNGARY'S ECONOMIC TRANSFORMATION BETWEEN 1990 AND 1993 THE COMPANY ADDED AS MANY AS 150000 NEW LINES ANNUALLY IT NOW OPERATES A TOTAL OF 15 MILLION TELEPHONE LINES BUT THIS SURGE OF ACTIVITY HAS DEPLETED ITS MEAGER FINANCING AND TECHNICAL POTENTIAL THE NEW HTC FLUSH WITH FRESH CASH FROM MAGYARCOM PROMISES TO SIGNIFICANTLY INCREASE LINE CONNECTIONS FROM 13 PER 100 INHABITANTS TO MORE THAN 30 BY 1997 IT GUARANTEES NEW TELEPHONES TO CUSTOMERS WITHIN SIX MONTHS A CONSIDERABLE IMPROVEMENT OVER CURRENT WAITING TIMES OF SEVERAL YEARS GYORGY SCHAMSCHULA HUNGARIAN MINISTER FOR TELECOMMUNICATIONS IS CONFIDENT THAT HUNGARY WILL REACH THE CURRENT WEST EUROPEAN STANDARDS BY THE END OF THE CENTURY THEN WE WILL ONLY BE 10 YEARS BEHIND THE REST OF EUROPE THE MINISTER SAID THE PARTIAL PRIVATIZATION MEANS HUNGARY ALSO IS LIKELY TO EVOLVE INTO A TELECOMMUNICATIONS HUB FOR THE ENTIRE REGION MR SCHAMSCHULA PREDICTED PROFIT POTENTIAL FOR THE COMPANY IS GOOD IN THE LONG TERM ANALYSTS SAY BECAUSE THE NEW HTC RECEIVES A 25YEAR CONCESSION ON DOMESTIC TRUNK SERVICE LONGDISTANCE CALLING AND OPEATIONS IN 29 REGIONAL AREAS THAT HAVE OPTED TO STAY WITH THE COMPANY TO SWEETEN THE OFFERING FOR FOREIGN INVESTORS THE FIRST EIGHT YEARS OF THE CONCESSION ARE EXCLUSIVE THE DEAL WAS ALSO RUSHED TO CONCLUSION BEFORE THE END OF THE YEAR TO TAKE ADVANTAGE OF TAX INCENTIVES ON FOREIGN INVESTMENT THAT WILL BE LIFTED IN 1994 DEUTSCHE TELECOM EUROPE'S LARGEST COMMUNICATIONS CARRIER WITH 35 MILLION CUSTOMERS HAS A 50PLUSONESHARE STAKE IN MAGYARCOM WITH THE REMAINDER HELD BY CHICAGOBASED AMERITECH A LEADING FULLSERVICE SUPPLIER TO 12 MILLION MIDWEST CUSTOMERS THAT IS ALSO ACTIVE IN POLAND NORWAY AND NEW ZEALAND AMERITECH DOUBLED ITS ORIGINAL 25 SHARE IN MAGYARCOM AFTER BRITAIN'S CABLE & WIRELESS PLC DROPPED OUT OF THE CONSORTIUM AT THE LAST MINUTE CITING TOO STEEP A PRICE AMERITECH SAID THE COMPANY IS ALSO LOOKING INTO OTHER PROJECTS IN THE REGION INCLUDING PLANS TO PRIVATIZE THE TELEPHONE NETWORK IN CZECH REPUBLIC NEXT YEAR 9312200100 931220 TRUCKERS BUS DRIVERS FACE BAN ON THE USE ON RADAR DETECTORS WASHINGTON AP MOST TRUCKERS AND BUS DRIVERS WILL BE PROHIBITED FROM USING RADAR DETECTORS IN INTERSTATE TRAVEL BEGINNING JAN 19 CARS AREN'T AFFECTED BECAUSE THE FEDERAL HIGHWAY ADMINISTRATION WHICH IS TO ISSUE THE RULE TODAY HAS REGULATORY POWERS ONLY OVER COMMERCIAL VEHICLES THERE'S NO REASON TO HAVE THESE DEVICES EXCEPT TO EVADE THE LAW SAID SEN FRANK LAUTENBERG D NJ WHO WROTE A PROVISION IN THE 1992 TRANSPORTATION SPENDING BILL ASKING THE HIGHWAY AGENCY TO INSTITUTE THE BAN THE AMERICAN TRUCKING ASSOCIATION SAID IT WAS PLEASED WE'D LIKE TO BELIEVE THE REGULATION CAME ABOUT AS A DIRECT RESULT OF OUR WORK SAID JOHN DOYLE AN ASSOCIATION SPOKESMAN THERE'S ONE REASON TO USE A RADAR DETECTOR TO BREAK THE LAW BUT TODD SPENCER SPOKESMAN FOR OWNEROPERATORS INDEPENDENT DRIVERS ASSOCIATION WHICH REPRESENTS 21000 TRUCKERS CALLED THE REGULATION A WHOLESALE WASTE OF TIME AND EFFORT ON THE PART OF GOVERNMENT IN AN INTERVIEW FROM THE ASSOCIATION'S OFFICE IN GRAIN VALLEY MO MR SPENCER SAID RADAR DETECTORS ARE NOT FACTORS IN HIGHWAY SAFETY OR HIGHWAY ACCIDENTS A FAR SMARTER THING FOR THE GOVERNMENT TO DO WOULD BE TO SIMPLY GIVE STATES THE AUTHORITY AND THE GUIDANCE TO SET SPEED LIMITS THAT ARE RELATED TO HIGHWAY DESIGN AND TRAFFIC CONDITIONS 9312200099 931220 BORDEN'S BOARD MULLS PLACING FIRM ON BLOCK DIRECTORS SAID TO BE DIVIDED OVER SALE OF COMPANY VS SHEDDING SOME PARTS BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BORDEN INC'S DIRECTORS ARE CONSIDERING PUTTING THE BELEAGUERED FOOD AND CHEMICALS COMPANY UP FOR SALE PEOPLE CLOSE TO THE BOARD SAY BORDEN WHICH IS EXPECTED TO ANNOUNCE ITS LATEST RESTRUCTURING PLAN BEFORE THE END OF THE YEAR DECLINED TO COMMENT BUT ACCORDING TO PEOPLE FAMILIAR WITH THE BOARD'S THINKING NEWLY APPOINTED CHAIRMAN FRANK J TASCO AND OUTSIDE DIRECTOR ROBERT P LUCIANO CHIEF EXECUTIVE OFFICER OF SCHERINGPLOUGH CORP ARE ADVOCATING THAT THE ENTIRE COMPANY BE SOLD MESSRS TASCO AND LUCIANO COULDN'T BE REACHED FOR COMMENT AT THE SAME TIME OTHER DIRECTORS ARE SAID TO FAVOR ALTERNATIVE SCENARIOS IN WHICH BORDEN WOULD SHED MAJOR PARTS OF ITS FARFLUNG FOOD AND CHEMICALS EMPIRE WHICH IN THE THIRD QUARTER SUFFERED SIGNIFICANT EARNINGS DECLINES IN NEARLY ALL MAJOR BUSINESS UNITS THERE'S A LOT OF DIFFERENT THINGS ON THE TABLE SAID AN EXECUTIVE FAMILIAR WITH THE DISCUSSIONS LIKE ANY COMPANY IN THIS SITUATION THERE'S HONEST DISAGREEMENT AMONG A LOT OF PEOPLE INCLUDED IN THE PROPOSALS UNDER CONSIDERATION IS ONE PRESENTED TO THE BOARD ON NOV 30 BY ANTHONY S D'AMATO WHO WAS OUSTED EARLIER THIS MONTH AS CHAIRMAN AND CHIEF EXECUTIVE HIS PLAN CALLED FOR THE SALE OF BORDEN'S SNACK FOODS DIVISION WHICH HAD REVENUE OF 125 BILLION LAST YEAR AND SOME BRANDS IN ITS NICHE GROCERY UNIT MR D'AMATO PROPOSED RETAINING THE COMPANY'S CHEMICALS PASTA AND DAIRY BUSINESSES WHILE ERVIN R SHAMES NEWLY APPOINTED CHIEF EXECUTIVE IS SAID TO HAVE BEEN ACTIVELY INVOLVED IN THE FORMULATION OF MR D'AMATO'S PLAN HIS PRESENT POSITION IS UNCLEAR ALTHOUGH MR D'AMATO'S PLAN REMAINS ON THE TABLE IT MAY NOT BE ENOUGH TO SATISFY MEMBERS OF BORDEN'S BOARD WHO HAVE GROWN IMPATIENT WITH THE COMPANY'S LONG HISTORY OF POOR EARNINGS AND FAILED RESTRUCTURING EFFORTS I BELIEVE THE RIGHT BID COULD WIN THIS COMPANY SAID JOHN MCMILLIN AN ANALYST AT PRUDENTIAL SECURITIES INC AND THE RIGHT BID WOULDN'T HAVE TO BE THAT HIGH BUT I'M NOT SURE ANYONE WANTS TO BID BORDEN'S MARKET VALUE IS ABOUT 254 BILLION ITS SHARES CLOSED FRIDAY AT 18 UP 125 CENTS IN NEW YORK STOCK EXCHANGE TRADING INDEED ANALYSTS BELIEVE BORDEN WOULD BE A TOUGH SELL THE COMPANY'S 71 BILLION IN SALES LAST YEAR CAME FROM A DISPARATE COLLECTION OF BUSINESSES RANGING FROM HOUSEHOLD GLUES TO WALL COVERINGS TO MILK BORDEN'S FOOD PORTFOLIO IS BULGING WITH SMALL NICHE PRODUCTS LIKE MINCEMEAT LEMON JUICE AND CANNED SEAFOOD AND PROFITS AT ITS LARGER DAIRY AND PASTA BUSINESSES HAVE BEEN DECLINING I THINK IT'S TOO MESSY SAID WILLIAM LEACH ANALYST AT DONALDSON LUFKIN & JENRETTE SECURITIES THE BRANDS ARE TOO WEAK FOR A STRATEGIC BUYER TO BUY THE WHOLE THING THE PRICE OF BORDEN'S STOCK HAS BEEN MIRED IN THE 18 RANGE ROUGHLY HALF ITS VALUE TWO YEARS AGO THE COMPANY'S BREAKUP VALUE IS ESTIMATED BY ANALYSTS TO BE IN THE LOW 20 RANGE THERE'S NOT A LOT OF MAJOR PUBLIC COMPANIES WILLING TO UNDERTAKE THE INVESTMENT AND TURN AROUND A COMPANY OF THIS MAGNITUDE SAYS LAWRENCE ADELMAN OF DEAN WITTER SEVERAL BIG FOOD COMPANIES HOWEVER ARE LOOKING AT BORDEN'S DIVERSE BRAND PORTFOLIO HOPING THEY MIGHT PICK OFF A FEW BARGAINS IN A DISTRESS SALE 9312200098 931220 LAW LEGAL BEAT DECISION IN KEENE CASE CLOUDS PROPOSED ASBESTOS SETTLEMENTS BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL SOME LAWYERS ARE QUESTIONING THE VIABILITY OF TWO PROPOSED ASBESTOS SETTLEMENTS TOTALING 25 BILLION IN THE WAKE OF A FEDERAL APPEALS COURT DECISION IN A SEPARATE CASE THIS MONTH EARLIER THIS MONTH THE SECOND US CIRCUIT COURT OF APPEALS IN NEW YORK THREW OUT A JUDGE'S ATTEMPT TO IMPOSE A MANDATORY SETTLEMENT OF ASBESTOS CLAIMS AGAINST KEENE CORP THE COMPANY HAD PROPOSED THE CLASSACTION APPROACH IN ORDER TO PUT ROUGHLY A 100 MILLION CAP ON ITS REMAINING ASBESTOS LIABILITY AND AVOID A BANKRUPTCYLAW FILING NOW FIBREBOARD CORP AND 20 FORMER ASBESTOS MAKERS FACE THE POSSIBILITY THAT THE KEENE DECISION WILL CREATE SOME LEGAL HURDLES FOR THEIR OWN COMPLEX SETTLEMENT PACTS INDEED ONE INSURER TAKING PART IN THE FIBREBOARD MATTER IS SO CONCERNED THAT IT HAS ASKED THE FULL SECOND CIRCUIT TO RECONSIDER THE KEENE RULING THE INSURER CONTINENTAL CASUALTY CO SAID IN ITS BRIEF SUPPORTING KEENE THAT THE APPELLATE PANEL'S DECISION CASTS UNJUSTIFIED AND UNNECESSARY DOUBT ON THE CONTINUED VALIDITY OF SUCH SETTLEMENTS BUT OTHERS INVOLVED IN PENDING AGREEMENTS SAY THEY ARE MORE OPTIMISTIC THAT THEIR ACCORDS WILL CIRCUMVENT THE LEGAL PITFALLS FACED BY KEENE ASBESTOS ONCE WIDELY USED IN INSULATION AND SHIPBUILDING CAN CAUSE CANCER AND LUNG DISEASE YEARS AFTER EXPOSURE ACROSS THE COUNTRY AN ESTIMATED 100000 ASBESTOS CASES ARE PENDING AND THE NUMBERS CONTINUE TO RISE IN RECENT YEARS FEDERAL DISTRICT JUDGES HAVE TRIED SOME UNTESTED LEGAL APPROACHES SUCH AS THE MANDATORY CLASS ACTION TO COMBINE THOUSANDS OF CASES AND RESOLVE THEM IN ONE FELL SWOOP THE RULING IN KEENE WHICH WAS FOLLOWED TWO DAYS LATER BY THE COMPANY'S BANKRUPTCYCOURT FILING WON'T HAVE A DIRECT IMPACT ON THE OTHER SETTLEMENTS BECAUSE THEY ARE IN SEPARATE APPELLATE CIRCUITS FIBREBOARD'S CASE ESTIMATED AT 15 BILLION IS IN FEDERAL COURT IN TYLER TEXAS AND THE CASE INVOLVING 20 ASBESTOS COMPANIES IS IN FEDERAL COURT IN PHILADELPHIA BUT CRITICS OF THE TWO SETTLEMENTS WERE QUICK TO SEIZE UPON THE KEENE DECISION TO SHOW THAT FINAL APPROVAL OF THESE DEALS WON'T NECESSARILY BE SMOOTH SAILING IN THE KEENE CASE THE APPEALS COURT FAULTED THE SETTLEMENT APPROACH IN PART BECAUSE THE TWO SIDES DIDN'T COME TO COURT WITH A DISPUTE AS THE US CONSTITUTION REQUIRES TO TRIGGER COURT ACTION THEY MERELY APPROACHED THE COURT WITH A PREARRANGED AGREEMENT AND SOUGHT TO USE THE COURT'S POWER TO HELP EFFECTUATE IT BUT THE APPEALS COURT CONCLUDED COURTS DO NOT HAVE THE AUTHORITY TO COMPEL PARTIES TO SETTLE THEIR CASES IN ADDITION THE APPEALS COURT EXPRESSED CONCERNS THAT THE RIGHTS OF ASBESTOS CLAIMANTS WOULDN'T BE PROPERLY PROTECTED AS THEY WOULD BE IN A BANKRUPTCY CLASS MEMBERS IN CASES SUCH AS THIS WOULD HAVE NO SAY IN THE CONDUCT OF THE COURTAPPOINTED CLASS REPRESENTATIVES AND UNLIKE CREDITORS IN BANKRUPTCY ARE NOT ABLE TO VOTE ON A SETTLEMENT FOR THEM IT WOULD BE CRAMDOWN' FROM START TO FINISH THE COURT WROTE THE MANDATORYCLASS ACTION WOULD INCLUDE CURRENT AND FUTURE CLAIMANTS THE KEY MESSAGE OF THE KEENE DECISION IS THAT JUDGES HAVE TO FOLLOW THE LAW SAID FREDERICK M BARON AN ASBESTOS PLAINTIFFS ATTORNEY AT DALLAS LAW FIRM BARON & BUDD THE FIBREBOARD PROPOSAL IS ALSO BASED ON A LIMITEDFUND CLASS ACTION AND THOUGH IT IS CONSIDERED MORE FAVORABLE TO PLAINTIFFS THAN THE ABORTED KEENE SETTLEMENT IT NONETHELESS RAISES SOME OF THE SAME LEGAL CONCERNS THAT TROUBLED THE SECOND CIRCUIT MR BARON SAID STEVEN KAZAN THE ATTORNEY REPRESENTING PRESENT AND FUTURE ASBESTOS VICTIMS IN THE FIBREBOARD PROPOSAL DISAGREES HE SAID KEENE'S PLAN WAS PROPERLY REJECTED BY THE APPEALS COURT BECAUSE IT WAS AN ATTEMPT TO IMPOSE AN UNREASONABLE SETTLEMENT THE FIBREBOARD CLASS ACTION WILL SURVIVE CHALLENGES ON APPEAL BECAUSE IT IS FAIRER TO ASBESTOS VICTIMS MR KAZAN PREDICTED THE FIBREBOARD PLAN ANNOUNCED IN AUGUST WILL BE FUNDED LARGELY WITH MONEY FROM TWO OF THE COMPANY'S INSURERS THE PHILADELPHIA CASE WHICH IS AIMED AT SETTLING FUTURE ASBESTOS CLAIMS AGAINST THE 20 COMPANIES IS LESS SIMILAR TO THE KEENE MATTER IT ISN'T STRUCTURED AS A MANDATORY LIMITEDFUND CLASS ACTION SAYS LAWRENCE FITZPATRICK PRESIDENT OF THE CENTER FOR CLAIMS RESOLUTION WHICH REPRESENTS THE 20 COMPANIES INSTEAD HE SAID THE COMPANIES' SETTLEMENT PLAN IS MORE AKIN TO THE RESOLUTION OF AGENT ORANGE CASES THAT SETTLEMENT OF THOUSANDS OF PERSONALINJURY CLAIMS WAS APPROVED BY THE SECOND CIRCUIT HOWEVER THE PHILADELPHIA PROPOSAL DOES RAISE ANOTHER ISSUE THAT WAS FAULTED IN KEENE'S PLAN ACCORDING TO MR BARON THE LACK OF A LEGITIMATE CASE OR CONTROVERSY IN THE PHILADELPHIA CASE AS IN THE KEENE MATTER THE DAY THE LAWSUIT WAS FILED IT WAS SETTLED MR BARON SAID THERE WAS NO DISPUTE THERE WAS NO ACTION TO ADJUDICATE MR FITZPATRICK SAID HE DOESN'T BELIEVE THIS ISSUE WILL BE A PROBLEM ON APPEAL A HARMONY ADDED TO AN EARLIER MUSICAL WORK CAN IN CERTAIN CIRCUMSTANCES RECEIVE COPYRIGHT PROTECTION A FEDERAL JUDGE HAS RULED IN A CASE INVOLVING THE JAZZ CLASSIC SATIN DOLL THE RULING OPENS THE WAY FOR A TRIAL BETWEEN THE HEIRS OF TWO OF THE US'S BESTKNOWN JAZZ COMPOSERS DUKE ELLINGTON AND BILLY STRAYHORN MR ELLINGTON COMPOSED THE ORIGINAL JAZZ STANDARD WHICH HE COPYRIGHTED IN 1953 MR STRAYHORN'S ESTATE CLAIMS TO HAVE AN INTEREST IN THE HARMONY AND REVISED MELODY OF CERTAIN VERSIONS OF THE WORK US DISTRICT JUDGE LEONARD SAND'S DECISION ALLOWS THE STRAYHORN ESTATE TO ATTEMPT TO PROVE THAT THE HARMONY IN CERTAIN VERSIONS REFLECTS ENOUGH ORIGINALITY AND CREATIVITY TO WARRANT COPYRIGHT PROTECTION IT'S A SIGNIFICANT DECISION IN A DIFFICULT AREA OF LAW SAID ALAN L SHULMAN OF THE NEW YORK FIRM SILVERMAN & SHULMAN REPRESENTING THE ELLINGTON INTEREST PAUL WEISS RIFKIND WHARTON & GARRISON BECAME ONE OF A SMALL BUT GROWING NUMBER OF US LAW FIRMS TO ESTABLISH A PRESENCE IN VIETNAM THE NEW YORK FIRM ENGAGED INVESTIP A VIETNAMESE LAW AND CONSULTING FIRM TO ACT ON BEHALF OF ITS CLIENTS IN SOUTHEAST ASIA UNDER A US EMBARGO THAT HAS BEEN IN PLACE SINCE THE VIETNAM WAR AMERICAN LAWYERS ARE RESTRICTED TO WORKING ONLY ON BEHALF OF US COMPANIES AND NATIONALS IN THAT COUNTRY SAID JEROME COHEN A PAUL WEISS PARTNER VIETNAM FOR ITS PART BARS AMERICAN LAW FIRMS FROM ESTABLISHING FULLFLEDGED BRANCH OFFICES WITHIN ITS BORDERS BUT MR COHEN SAID THOSE RESTRICTIONS ARE EXPECTED TO BE LIFTED SOON HE SAID IT'S TOO EARLY TO SAY WHETHER PAUL WEISS WILL OPEN A VIETNAMESE BRANCH ONCE THE CURBS ARE REMOVED OTHER US LAW FIRMS WITH ONGOING CONTACTS IN VIETNAM INCLUDE BAKER & MCKENZIE OF CHICAGO COUDERT BROTHERS OF NEW YORK AND WASHINGTON'S DICKSTEIN SHAPIRO & MORIN PARTNERS AT THEM SAID MARGARET A JACOBS AND AMY STEVENS CONTRIBUTED TO THIS ARTICLE 9312200097 931220 INTERNATIONAL SIGNS GROW OF CABINET SHAKEUP RETREAT FROM REFORMS IN RUSSIA POSTELECTION DECISIONS ARE COUNTER TO AUSTERITY PRIVATIZATION POLICIES BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW IN THE WAKE OF RUSSIA'S PARLIAMENTARY ELECTION LAST WEEK THERE ARE GROWING SIGNS THAT A CABINET SHAKEUP AND A RETREAT FROM KEY REFORMS ARE IMMINENT GOVERNMENT DECISIONS TAKEN LATE LAST WEEK RUN COUNTER TO THE FISCAL AUSTERITY AND RAPID PRIVATIZATION ADVOCATED BY DEPUTY PRIME MINISTER YEGOR GAIDAR AND HIS TEAM OF RADICAL REFORMERS PRIME MINISTER VIKTOR CHERNOMYRDIN WHO LAST WEEK SAID SOME CABINET CHANGES WERE IN THE WORKS CRITICIZED MR GAIDAR AND THE HEAD OF THE PRIVATIZATION PROGRAM IN PARTICULAR IN AN INTERVIEW WITH THE LABOR UNION DAILY TRUD PRINTED ON SATURDAY THE CURRENT ECONOMICREFORM PROGRAM HAS COME UNDER WIDESPREAD ATTACK SINCE THE REFORMERS' UNEXPECTEDLY WEAK PERFORMANCE IN THE ELECTIONS DEC 12 THE HIGH LEVEL OF SUPPORT FOR THE COMMUNIST PARTY AND FOR VLADIMIR ZHIRINOVSKY'S ULTRANATIONALIST LIBERAL DEMOCRATIC PARTY ARE PARTLY DUE TO ANGER OVER THE REFORMS MR CHERNOMYRDIN WHO SO FAR APPEARS TO HAVE WEATHERED THE POLITICAL STORM IN PART BY STAYING OUT OF THE ELECTION RACE REITERATED HIS VIEW THAT THERE WILL BE NO MORE RADICAL AND HASTY REFORMS IN THE TRUD INTERVIEW THE ELECTION DEFEAT IS A PERSONAL EVALUATION OF GAIDAR AS THE PERSON RESPONSIBLE FOR THE ECONOMICS MINISTRY HE SAID THE SAME GOES FOR PRIVATIZATION CHIEF ANATOLI CHUBAIS FINANCE MINISTER BORIS FYODOROV TOLD DEPUTY FINANCE MINISTERS OF THE GROUP OF SEVEN LEADING INDUSTRIAL NATIONS AT A MEETING IN FRANCE ON FRIDAY THAT RUSSIA WILL KEEP ECONOMIC REFORMS GOING AT THE CURRENT PACE HE SAID THAT REFORMERS IN RUSSIA AGREED THAT THE ELECTION RESULTS WEREN'T PROVOKED BY REFORMS BUT BY THEIR INCONSISTENCY INSUFFICIENT SPEED AND PROGRESS ACCORDING TO THE OFFICIAL NEWS AGENCY ITARTASS HE BROUGHT LETTERS FROM MR YELTSIN CONFIRMING THE ECONOMICREFORM COURSE INCLUDING FINANCIAL STABILIZATION AS THE TOP PRIORITY STILL SOME CHANGES IN THE REFORM PATH ARE LIKELY ON FRIDAY THE GOVERNMENT PASSED AN UPDATED PRIVATIZATION PROGRAM THAT REPORTEDLY GIVES REGIONAL OFFICIALS MORE CONTROL OVER PRIVATIZATION IN THEIR TERRITORY IN THE PAST YEAR PRIVATIZATION HAS OFTEN STALLED AT THE REGIONAL LEVEL AS LOCAL OFFICIALS DECIDED NOT TO APPLY CERTAIN ELEMENTS AND TO SLOW THE IMPLEMENTATION OF OTHERS TODAY WAS THE FIRST MEETING OF THE COALITION GOVERNMENT SINCE THE ELECTION AND IT SHOWED THAT OPINIONS DIFFER VERY MUCH EVEN ON SUCH ISSUES AS REGIONAL CONTROL ONE PARTICIPANT IN FRIDAY'S PRIVATIZATION DEBATE TOLD THE NEWS AGENCY THE DRIVE TO STICK WITH TOUGH ANTIINFLATION MEASURES WHICH IN THE BEST OF TIMES HAS FALTERED MAY WELL ALSO BE FURTHER UNDERMINED ON FRIDAY PRESIDENT BORIS YELTSIN ORDERED SOFT LOANS TO FARMMACHINERY ENTERPRISES WORTH 120 MILLION ACCORDING TO THE INDEPENDENT NEWS AGENCY INTERFAX THE LOANS WILL BE DISPENSED AT A 25 ANNUAL INTEREST RATE FAR BELOW THE CENTRAL BANK'S DISCOUNT RATE OF 210 EARLIER IN THE WEEK MR YELTSIN ISSUED A DECREE CUTTING TAXES FOR THE LOWERINCOME BRACKETS ALTHOUGH THE FINANCE MINISTRY HAS LONG BEEN PLANNING TO RAISE TAXES REFORMERS WARN OF OTHER MORE SUBTLE ATTEMPTS TO DERAIL FISCAL AUSTERITY CENTRAL BANK CHAIRMAN VIKTOR GERASHCHENKO PLANS TO ISSUE NEW CREDITS TO HELP COMPANIES PAY OFF THEIR DEBTS TO ONE ANOTHER WROTE ANDREI ILLARIONOV AN ADVISER TO THE PRIME MINISTER AND AN ECONOMIST AT THE GOVERNMENT'S WORKING CENTER FOR ECONOMIC REFORMS MR YELTSIN HAS ALREADY BEGUN THE INEVITABLE AND SO FAR LARGELY SYMBOLIC PURGE OF CLOSE AIDES LAST WEEK HE FIRED SEVERAL PRESIDENTIAL APPOINTEES THE HEAD OF THE STATEOWNED OSTANKINO TELEVISION ADVISER SERGEI STANKEVICH AND THE HEAD OF THE PRESIDENT'S LEGAL DEPARTMENT ALEXANDER KOTYONKOV IT ISN'T CLEAR HOW FAR MR YELTSIN WILL GO IN A CABINET SHAKEUP BUT RUMORS ARE FLYING MR YELTSIN IS EXPECTED TO HOLD A NEWS CONFERENCE ON WEDNESDAY WHEN ELECTION TALLIES SHOULD BE COMPLETED IN THE MEANTIME MR GAIDAR LEFT A MEETING WITH THE PRESIDENT ON FRIDAY GLUM AND UNTALKATIVE ACCORDING TO AN ECONOMIST WHO WORKS CLOSELY WITH THE DEPUTY PRIME MINISTER'S TEAM PRIVATIZATION CHIEF MR CHUBAIS IS RUMORED TO BE THINKING ABOUT TAKING A NEW JOB AS HEAD OF A NEW ANTIFASCIST POLITICAL COALITION THE ANTIFASCIST MOVEMENT WAS LAUNCHED SATURDAY AT A MEETING OF POLITICAL LEADERS AND REPRESENTATIVES FROM PUBLIC ORGANIZATIONS AND THE ARTS IN A STATEMENT SIGNED BY MR GAIDAR AMONGST OTHERS THE MOVEMENT DENOUNCED MR ZHIRINOVKSY AND URGED THE PUBLIC TO UNITE IN A POPULAR FRONT AGAINST FASCISM IN A SEPARATE PLEA TO MR YELTSIN THE GROUP CALLED FOR THE PRESIDENT TO DISMISS THOSE OF HIS OWN ADVISERS WHO HAVE SUGGESTED SEEKING A CONSENSUS WITH MR ZHIRINOVKSY 9312200095 931220 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 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 318 30 TO 40 DAYS 315 41 TO 119 DAYS 322 120 TO 149 DAYS 325 150 TO 179 DAYS 328 180 TO 239 DAYS 337 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 332 30 DAYS 331 60 DAYS 331 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 260 TWO MONTHS 264 THREE MONTHS 279 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 316 THREE MONTHS 331 SIX MONTHS BANKERS ACCEPTANCES 313 30 DAYS 313 60 DAYS 313 90 DAYS 318 120 DAYS 320 150 DAYS 324 180 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 609 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 13 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 306 13 WEEKS 326 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 703 60 DAYS 711 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 702 60 DAYS 712 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 9312200094 931220 U S WEST DELAYS INITIAL OFFERING OF A SUBSIDIARY BONDINSURANCE UNIT IS VICTIM OF LESS INTEREST IN THE INDUSTRY'S STOCKS BY GAUTAM NAIK AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL U S WEST INC POSTPONED AN INITIAL PUBLIC OFFERING OF ITS BONDINSURANCE UNIT VALUED AT 3105 MILLION TO 3375 MILLION IN THE LATEST SIGN THAT THE ONCEHOT MARKET FOR INSURANCE STOCK OFFERINGS IS COOLING THE REGIONAL TELEPHONE COMPANY BASED IN ENGLEWOOD COLO CITED THE RECENT WEAKNESS IN INSURANCE STOCKS FOR DELAYING THE OFFERING IN FINANCIAL SECURITY ASSURANCE HOLDINGS LTD ANALYSTS SAY INSURANCE STOCKS HAVE BEEN IN A SLUMP SINCE OCTOBER WHEN INTEREST RATES BEGAN RISING AGAIN HIGHER RATES PUSH DOWN BOND PRICES REDUCING THE VALUE OF ANY INSURANCE COMPANY WITH LARGE BOND HOLDINGS WEALTH HAS BEEN ERODED SAID SALOMON BROTHERS INSURANCE STOCK ANALYST MICHAEL FRINQUELLI ANALYSTS ALSO CITE THE RECENT GLUT OF INSURANCE OFFERINGS SINCE 1991 MORE THAN 50 INSURERS HAVE GONE PUBLIC INCLUDING ALLSTATE CORP WHICH RAISED 24 BILLION THIS SUMMER IN ONE OF THE BIGGEST INITIAL PUBLIC OFFERINGS IN US HISTORY ANALYSTS SAY THE DELAYS BY U S WEST AND SOME INSURANCE COMPANIES LATELY RAISE QUESTIONS ABOUT OTHER OFFERINGS STILL TO COME AMONG THE LARGEST DEALS PENDING IS A 420 MILLION OFFERING FOR A 40 STAKE IN PRUDENTIAL INSURANCE CO OF AMERICA'S REINSURANCE UNIT THESE ARE NOT FAVORABLE CONDITIONS FOR ANY INSURANCE ISSUE SAID AM BEST CO SENIOR VICE PRESIDENT JOHN SYNDER STILL CHARLES RONSON AN ANALYST AT BALESTRA CAPITAL SAYS OFFERINGS SUCH AS THOSE FOR FINANCIAL SECURITY CAN STILL BE ACCOMPLISHED BUT ONLY BY REDUCING THE PRICE HE SAID HE HAS TALKED TO INSTITUTIONAL INVESTORS THAT SAID THE FINANCIAL SECURITY DEAL WAS AN ATTRACTIVE DEAL AT 20 THEY U S WEST WANTED A HIGHER PRICE HE SAID FINANCIAL SECURITY GUARANTEES ASSETBACKED SECURITIES AND MUNICIPAL BONDS WORLDWIDE AND HAS 43 BILLION OF NET INSURANCE IN FORCE IN A FILING WITH REGULATORS THE COMPANY HAD SAID IT PLANNED TO OFFER 135 MILLION SHARES AT 23 TO 25 APIECE THE 3105 MILLION TO 3375 MILLION VALUATION IS BASED ON THAT RANGE THE OFFERING WAS SUPPOSED TO BE PART OF A PLAN BY U S WEST TO EXIT FROM THE FINANCIALSERVICES BUSINESS A SPOKESWOMAN FOR THE REGIONAL TELEPHONE COMPANY SAID FINANCIAL SECURITY IS A RELATIVELY SMALL PART OF THE COMPANY'S BUSINESS AND THE DELAYED OFFERING WON'T HAVE A MATERIAL IMPACT ON THE COMPANY THE INITIAL PUBLIC OFFERING WAS ANNOUNCED OCT 12 THE US UNDERWRITING GROUP IS LED BY SALOMON BROTHERS INC AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP FINANCIAL SECURITY SAID IT WOULD GO FORWARD WITH A RESTRUCTURING BEING DONE IN CONNECTION WITH THE OFFERING THE COMPANY SAID IT HAD EXPERIENCED DIFFICULTIES IN THE COMMERCIALMORTGAGE SECTOR OF ITS BONDINSURANCE BUSINESS AND WAS SPINNING OFF THOSE OPERATIONS INTO A SEPARATE COMPANY COMMERCIAL REINSURANCE AS A RESULT THE COMPANY WILL REDUCE ITS EXPOSURE TO COMMERCIALMORTGAGE COVERAGE TO 325 MILLION FROM 18 BILLION A SPOKESWOMAN SAID 9312200093 931210 COMMUTER MASSACRE OUR WARNING BY WILLIAM J BENNETT THE LONG ISLAND RAILROAD TRAIN MASSACRE HAS TEMPORARILY SHAKEN AMERICANS THAT IT TOOK A SHOWER OF BULLETS IN A SUBURBAN RAILWAY CAR TO OUTRAGE US THOUGH IS A MEASURE OF OUR COMPLACENCY ABOUT CRIME AND VIOLENCE IN OUR SOCIETY FOR TOO LONG WE HAVE ALLOWED THE DEEPER PROBLEMS THAT UNDERLIE VIOLENCE AND OTHER SOCIAL ILLS TO PASS WITHOUT COMMENT AMERICA IS NOT IN DANGER OF BECOMING A THIRD WORLD COUNTRY WE ARE TOO RICH TOO PROUD AND TOO STRONG TO ALLOW THAT TO HAPPEN MANY PEOPLE LIVE WELL DECENTLY EVEN HONORABLY THERE ARE PLACES WHERE VIRTUE IS TAUGHT AND LEARNED BUT THERE IS A LOT LESS OF THIS THAN THERE OUGHT TO BE MURDERERS LIKE COLIN FERGUSON ARE BECOMING MORE COMMON EARLIER THIS YEAR I RELEASED THROUGH THE AUSPICES OF THE HERITAGE FOUNDATION THE INDEX OF LEADING CULTURAL INDICATORS IT SHOWED THAT SINCE 1960 THERE HAS BEEN A 560 INCREASE IN VIOLENT CRIME THERE HAS ALSO BEEN MORE THAN A 400 INCREASE IN ILLEGITIMATE BIRTHS A QUADRUPLING IN DIVORCES A TRIPLING OF THE PERCENTAGE OF CHILDREN LIVING IN SINGLEPARENT HOMES MORE THAN A 200 INCREASE IN THE TEENAGE SUICIDE RATE AND A DROP OF 75 POINTS IN THE AVERAGE SAT SCORES OF HIGH SCHOOL STUDENTS TODAY 30 OF ALL BIRTHS AND 68 OF BLACK BIRTHS ARE ILLEGITIMATE THE US RANKS NEAR THE TOP IN THE INDUSTRIALIZED WORLD IN ITS RATES OF ABORTION DIVORCE AND UNWED BIRTHS WE LEAD THE INDUSTRIALIZED WORLD IN MURDER RAPE AND VIOLENT CRIME AND IN ELEMENTARY AND SECONDARY EDUCATION WE ARE AT OR NEAR THE BOTTOM IN ACHIEVEMENT SCORES BUT THERE ARE OTHER SIGNS OF DECAY ONES THAT DO NOT SO EASILY LEND THEMSELVES TO QUANTITATIVE ANALYSES THERE IS A COARSENESS A CALLOUSNESS A CYNICISM A BANALITY AND A VULGARITY TO OUR TIME THERE ARE TOO MANY SIGNS OF A CIVILIZATION GONE ROTTEN AND THE WORST OF IT HAS TO DO WITH OUR CHILDREN WE LIVE IN A CULTURE THAT AT TIMES SEEMS ALMOST DEDICATED TO THE CORRUPTION OF THE YOUNG TO ENSURING THE LOSS OF THEIR INNOCENCE BEFORE THEIR TIME A LARGE PART OF THE PROBLEM IS THAT SUCH CRIMINALS AS COLIN FERGUSON NO LONGER FACE THE SURE PUNISHMENT THEY ONCE DID LAST MONTH A VIOLENT CRIMINAL WAS AWARDED 43 MILLION IN NEW YORK WHY HE HAD MUGGED AND ALMOST KILLED A 72YEAROLD MAN THEN FLED THE SCENE A POLICE OFFICER SHOT THE CRIMINAL IN THE BACK THE COURTS DEEMED THAT WRONG AND MADE THE MAN MILLIONS PUBLIC REACTION VIRTUAL SILENCE OTHER COURT CASES HAVE PROVED SIMILARLY DISHEARTENING DURING LAST YEAR'S LOS ANGELES RIOTS DAMIAN WILLIAMS AND HENRY WATSON WERE FILMED PULLING AN INNOCENT MAN OUT OF A TRUCK CRUSHING HIS SKULL WITH A BRICK AND DOING A VICTORY DANCE OVER HIS FALLEN BODY THEIR LAWYERS THEN BUILT A SUCCESSFUL LEGAL DEFENSE ON THE PROPOSITION THAT PEOPLE CANNOT BE HELD ACCOUNTABLE FOR GETTING CAUGHT UP IN MOB VIOLENCE WHEN THE TRIAL WAS OVER AND THESE MEN WERE FOUND NOT GUILTY ON MOST COUNTS THE SOUND YOU HEARD THROUGHOUT THE LAND WAS RELIEF WE ARE DEFINING DEVIANCY DOWN IN SEN DANIEL PATRICK MOYNIHAN'S PHRASE AND IN THE PROCESS WE ARE LOSING A ONCERELIABLE SENSE OF CIVIC AND MORAL OUTRAGE POP CULTURE PLAYS A ROLE HERE THROUGH IT WE HAVE SEEN THE TERRIBLE DEBASEMENT OF MUSIC IT IS A STEEP MORAL SLIDE FROM BACH OR EVEN BUDDY HOLLY TO GUNS N' ROSES AND 2 LIVE CREW THIS MONTH AN INDICTED MURDER SUSPECT SNOOP DOGGY DOG SAW HIS RAP ALBUM DOGGYSTYLE DEBUT AT NUMBER ONE ON THE DAYTIME TELEVISION TALK SHOWS INDECENT EXPOSURE IS CELEBRATED AS A VIRTUE IN JUST THE PAST FEW WEEKS THESE SHOWS DEALT WITH CROSSDRESSING COUPLES A THREEWAY LOVE AFFAIR A MAN WHOSE CHIEF AIM IN LIFE IS TO SLEEP WITH WOMEN AND FOOL THEM INTO THINKING THAT HE IS USING A CONDOM DURING SEX WOMEN WHO CAN'T SAY NO TO CHEATING PROSTITUTES WHO LOVE THEIR JOBS A FORMER DRUG DEALER AND AN INTERVIEW WITH A YOUNG GIRL CAUGHT IN THE MIDDLE OF A BITTER CUSTODY BATTLE IN MY VIEW THE REAL CRISIS OF OUR TIME IS SPIRITUAL SPECIFICALLY OUR PROBLEM IS WHAT THE ANCIENTS CALLED ACEDIA OR SLOTH ACEDIA REVEALS ITSELF AS AN UNDUE CONCERN FOR EXTERNAL AFFAIRS AND WORLDLY THINGS IT IS SPIRITUAL TORPOR AN ABSENCE OF ZEAL FOR DIVINE THINGS AND IT BRINGS WITH IT ACCORDING TO THE ANCIENTS A SADNESS A SORROW OF THE WORLD THE OLD THEOLOGIANS TAUGHT THAT ACEDIA ARISES FROM A HEART STEEPED IN THE WORLDLY AND CARNAL AND FROM A LOW ESTEEM OF DIVINE THINGS IT EVENTUALLY LEADS TO A HATRED OF THE GOOD ALTOGETHER AND WITH HATRED COMES MORE REJECTION ILLTEMPER SADNESS AND SORROW WHEN THE LATE NOVELIST WALKER PERCY WAS ASKED WHAT CONCERNED HIM MOST ABOUT THE FUTURE OF AMERICA HE ANSWERED PROBABLY THE FEAR OF SEEING AMERICA WITH ALL ITS GREAT STRENGTH AND BEAUTY AND FREEDOM GRADUALLY SUBSIDE INTO DECAY THROUGH DEFAULT AND BE DEFEATED NOT BY THE COMMUNIST MOVEMENT BUT FROM WITHIN FROM WEARINESS BOREDOM CYNICISM GREED AND IN THE END HELPLESSNESS BEFORE ITS GREAT PROBLEMS ONLY WHEN WE TURN OUR AFFECTIONS AND DESIRES TOWARD THE RIGHT THINGS TOWARD ENDURING NOBLE SPIRITUAL THINGS WILL THINGS GET BETTER MATERIAL GAINS WILL NOT BE ENOUGH HERE IF WE ACHIEVE FULL EMPLOYMENT AND GREATER ECONOMIC GROWTH IF WE HAVE CITIES OF GOLD AND ALABASTER BUT OUR CHILDREN HAVE NOT LEARNED HOW TO WALK IN GOODNESS JUSTICE AND MERCY THEN THE AMERICAN EXPERIMENT NO MATTER HOW GILDED WILL HAVE FAILED EVEN NOW THERE IS A SENSE OF THIS AMID THE CURRENT PROSPERITY AND SECURITY ALMOST 70 OF THE PUBLIC ARE SAYING WE ARE OFFTRACK WHEN MILLIONS OF PEOPLE STOP BELIEVING IN GOD OR WHEN THEIR BELIEF IS SO ATTENUATED AS TO BE BELIEF IN NAME ONLY ENORMOUS PUBLIC CONSEQUENCES FOLLOW AND WHEN THIS IS ACCOMPANIED BY AN AVERSION TO SPIRITUAL LANGUAGE BY THE POLITICAL AND INTELLECTUAL CLASS THE PUBLIC CONSEQUENCES ARE EVEN GREATER DOSTOYEVSKY REMINDED US IN BROTHERS KARAMAZOV THAT IF GOD DOES NOT EXIST EVERYTHING IS PERMISSIBLE WE ARE NOW SEEING EVERYTHING WHAT CAN BE DONE FIRST THE SHORT ANSWERS DO NOT SURRENDER GET MAD AND GET IN THE FIGHT NOW LET ME OFFER A FEW SOMEWHAT LONGER PRESCRIPTIONS OUR FIRST TASK IS TO RECOGNIZE THAT IT IS FOOLISH AND FUTILE TO RELY PRIMARILY ON POLITICS TO SOLVE MORAL CULTURAL AND SPIRITUAL AFFLICTIONS WE MUST HAVE PUBLIC POLICIES THAT AGAIN MAKE THE CONNECTION BETWEEN OUR DEEPEST BELIEFS AND OUR LEGISLATIVE AGENDA DO WE AMERICANS FOR EXAMPLE BELIEVE THAT MAN IS A SPIRITUAL BEING WITH A POTENTIAL FOR INDIVIDUAL NOBILITY AND MORAL RESPONSIBILITY OR DO WE BELIEVE THAT HIS FATE IS TO BE A SOULLESS COG IN THE MACHINE OF STATE WE SAY WE DESIRE FROM OUR CHILDREN MORE CIVILITY AND RESPONSIBILITY BUT IN MANY OF OUR SCHOOLS WE STEADFASTLY REFUSE TO TEACH RIGHT AND WRONG WE SAY WE WANT LAW AND ORDER IN THE STREETS BUT WE ALLOW VIOLENT CRIMINALS TO RETURN TO THOSE SAME STREETS WE SAY WE WANT TO STOP ILLEGITIMACY BUT WE CONTINUE TO SUBSIDIZE THE BEHAVIOR THAT VIRTUALLY GUARANTEES HIGH RATES OF ILLEGITIMACY WE SAY WE WANT TO DISCOURAGE TEENAGE SEXUAL ACTIVITY BUT EDUCATORS ARE MORE EAGER TO DISPENSE CONDOMS THAN MORAL GUIDANCE WE SAY WE WANT MORE FAMILIES TO STAY TOGETHER BUT WE MAKE DIVORCES EASIER TO OBTAIN WE SAY WE WANT TO ACHIEVE A COLORBLIND SOCIETY BUT WE CONTINUE TO COUNT BY RACE WE SAY WE WANT TO ENCOURAGE VIRTUE AND HONOR AMONG THE YOUNG BUT IT HAS BECOME A MARK OF SOPHISTICATION TO SHUN THE LANGUAGE OF MORALITY WE DESPERATELY NEED TO RECOVER A SENSE OF THE FUNDAMENTAL PURPOSE OF EDUCATION WHICH IS TO PROVIDE FOR THE INTELLECTUAL AND MORAL EDUCATION OF THE YOUNG IF YOU ASK WHAT IS THE GOOD OF EDUCATION PLATO SAID THE ANSWER IS EASY THAT EDUCATION MAKES GOOD MEN AND THAT GOOD MEN ACT NOBLY JEFFERSON BELIEVED THAT EDUCATION SHOULD AIM AT IMPROVING ONE'S MORALS AND FACULTIES UNTIL A QUARTERCENTURY OR SO AGO THIS CONSENSUS WAS SO DEEP AS TO GO VIRTUALLY UNCHALLENGED HAVING DEPARTED FROM THIS TIMEHONORED BELIEF WE ARE NOW REAPING THE WHIRLWIND AS INDIVIDUALS AND AS A SOCIETY WE NEED TO RETURN RELIGION TO ITS PROPER PLACE RELIGION AFTER ALL PROVIDES US WITH MORAL BEARINGS IN AMERICA TODAY THE ONLY RESPECTABLE FORM OF BIGOTRY IS BIGOTRY DIRECTED AGAINST RELIGIOUS PEOPLE THIS ANTIPATHY TOWARD RELIGION CANNOT BE EXPLAINED BY THE MORAL FAILURES AND FINANCIAL EXCESSES OF A FEW LEADERS OR CHARLATANS OR BY THE CENSORIOUSNESS OF SOME OF THEIR FOLLOWERS NO THE REASON FOR HATRED OF RELIGION IS BECAUSE IT FORCES MODERN MAN TO CONFRONT MATTERS HE WOULD PREFER TO IGNORE THESE ARE MATTERS WE CAN NO LONGER IGNORE IT WOULD BE IMPOSSIBLE FOR ANY SOCIETY TO ENTIRELY GUARD AGAINST MADMEN BUT THE COMMUTER MURDERS AND INCIDENTS LIKE THEM TOUCH OUR CORE AND IT IS TO OUR CORE THAT WE MUST ATTEND MR BENNETT A FELLOW AT THE HERITAGE FOUNDATION IS AUTHOR OF THE BOOK OF VIRTUES SIMON & SCHUSTER SEE RELATED LETTERS LETTERS TO THE EDITOR ON THE PRECIPICE OF A MORASS WSJ DEC 20 1993 9312100128 YY93 MM12 9312200092 931220 ITALY'S RETAIL SALES RISE 36 ROME ITALY'S RETAIL SALES INDEX WAS UP 36 IN AUGUST FROM A YEAR EARLIER THE STATE STATISTICAL INSTITUTE ISTAT REPORTED THE INDEX IS CALCULATED ON THE BASIS OF RETAIL SALES FIGURES FROM MORE THAN 3000 LARGE AND MEDIUMSIZED BUSINESSES COVERING 10000 OUTLETS ACROSS THE COUNTRY IN AUGUST LARGE RETAIL CHAINS REGISTERED A 41 RISE IN SALES WHILE MEDIUMSIZED RETAILERS POSTED AN INCREASE OF 08 9312200091 931217 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9312200090 931220 WHO'S NEWS HOLLYWOOD CASINO CORP HOLLYWOOD CASINO CORP DALLAS THEODORE STRAUSS 68YEAROLD SENIOR MANAGING DIRECTOR AT BEAR STEARNS & CO WAS ELECTED TO THE BOARD OF THIS CASINO OPERATOR INCREASING THE BOARD'S SIZE TO SEVEN MEMBERS 9312200089 931220 EC MINISTERS CLEAR AID PLAN FOR STEELMAKERS SIX STATEOWNED COMPANIES TO RECEIVE 766 BILLION IN BID TO REVIVE INDUSTRY BY MARTIN DU BOIS STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS EUROPEAN COMMUNITY MINISTER APPROVED A 679 BILLION ECU 766 BILLION AID PACKAGE FOR STATEOWNED STEELMAKERS WARNING THERE WOULDN'T BE ANY FURTHER BAILOUTS FOR THE SIX COMPANIES INVOLVED THE AID PACKAGE IS PART OF AN AMBITIOUS PLAN TO GET THE COMMUNITY'S AILING STEEL INDUSTRY BACK ON ITS FEET IN RETURN FOR THE STATE MONEY ILVA SPA IN ITALY EKO STAHL AG AND FREITAL IN GERMANY CIA SIDERURGICA INTEGRAL AND SIDENOR IN SPAIN AND PORTUGAL'S SIDERURGICA INTEGRAL WILL CUT AS MUCH AS 55 MILLION TONS OF THEIR PRODUCTION CAPACITY AND TAKE STEPS TOWARD PRIVATIZATION THE MOVE WHICH CAPS MONTHS OF POLITICAL HORSETRADING IS EXPECTED TO HELP BUOY STEEL PRICES AND CURB THE INDUSTRY'S STRUCTURAL OVERCAPACITY PROBLEM BUT THE CONTROVERSIAL ACCORD REACHED FRIDAY IS ONLY A FIRST STEP IN A VAST RESTRUCTURING PROGRAM FOR THE COMMUNITY'S STEEL INDUSTRY THE SECOND STAGE OF THE RESTRUCTURING PROGRAM CALLS FOR NONSUBSIDIZED STEELMAKERS TO NEGOTIATE FARREACHING CAPACITY CUTS AS MANY AS 50000 JOBS COULD BE TRIMMED IN THE PUSH TO RETURN THE STEEL INDUSTRY TO FINANCIAL HEALTH WE'VE TAKEN A STEP TODAY BUT THERE'S STILL A LONG WAY TO GO SAID EC COMPETITION COMMISSIONER KAREL VAN MIERT WHO PLAYED AN INSTRUMENTAL ROLE IN NEGOTIATING FRIDAY'S AGREEMENT BUT MR VAN MIERT DIDN'T HIDE HIS CONCERN THAT STEELMAKERS WILL ONCE AGAIN PROVE RELUCTANT TO RADICALLY SLASH OUTPUT DESPITE RESTRUCTURINGS DURING THE PREVIOUS STEEL CRISES IN THE 1970S AND 1980S THE EC STILL PRODUCES 150 MILLION TONS OF RAW STEEL A YEAR OF WHICH IT CAN USE ONLY ABOUT 120 MILLION TONS NONSUBSIDIZED STEELMAKERS ARE UNHAPPY WITH THE BAILOUT PACKAGE WHICH THEY CRITICIZED AS TOO GENEROUS BY FAILING TO OBTAIN DEEPER CUTS IN THE SUBIDIZED PART OF THE INDUSTRY THE EC ACCORD FORCES THOSE WHO HAVEN'T RELIED ON GOVERNMENT PROTECTION IN THE PAST FEW YEAR TO MAKE PAINFUL SACRIFICES INDUSTRY OFFICIALS FUME THAT VIRTUE IS BEING PUNISHED AS A RESULT STEELMAKERS ARE DRAGGING THEIR FEET IN NEGOTIATING SHUTDOWNS ESPECIALLY IN THE FLATSTEEL SECTOR MANY WORRY THAT THE INDUSTRY COULD SINK INTO EVEN DEEPER TROUBLE IF THE CUTS AREN'T GOING TO HAPPEN THEN WE'LL HAVE OTHER STATEAID CASES ON OUR HANDS VERY SOON MR VAN MIERT WARNED INDUSTRY EXECUTIVES ALSO WORRY THAT THE HEFTY SUBSIDIES MIGHT REVIVE US ACTIONS AGAINST THE DUMPING OF EUROPEAN STEEL PRODUCTS AT ALLEGEDLY UNFAIR PRICES ON THE US MARKET AND BUDDING EXPORTERS IN EASTERN EUROPE AND THE FORMER SOVIET UNION ARE ALSO LIKELY TO STEP UP FREETRADE PRESSURE ON THE EC'S LEAST COMPETITIVE PRODUCERS TO AVOID GETTING DRAGGED INTO ANOTHER COSTLY SUBSIDY RACE THE EC AGREED THAT THE SIX COMPANIES WOULDN'T BE ALLOWED TO SEEK FURTHER GOVERNMENT HELP EVEN IF THAT WERE TO MEAN BANKRUPTCY THE GOVERNMENTS OF ITALY GERMANY AND SPAIN VOWED THAT ILVA EKO STAHL AND SIDENOR WOULD BE PRIVATIZED SOON AND MADE RESPONSIBLE FOR THEIR OWN FUTURES IN ADDITION THE ACCORD PROVIDES THAT THE EC COMMISSION WILL EXERCISE A TOUGH MONITORING OF PROGRESS IN MAKING CAPACITY CUTBACKS AND PRIVATIZATION PLANS IF ONE OF THE AID RECIPIENTS WERE TO FALL BEHIND IN FULFILLING ITS PROMISES THE EC COMMISSION COULD BLOCK SUBSIDY DISBURSEMENTS OFFICIALS SAID THESE LATTER MEASURES WERE WELL RECEIVED BY THE INDUSTRY BASICALLY WE'RE DISAPPOINTED THAT THE CLOSURES WE WERE LOOKING FOR WON'T HAPPEN AND THAT A HOTROLLING UNIT AT EKO STAHL IS BEING BUILT WITH THE HELP OF GOVERNMENT MONEY SAID IAN RODGERS DIRECTOR OF INTERNATIONAL AFFAIRS AT THE BRITISH IRON & STEEL PRODUCERS ASSOCIATION BUT WE'RE HAPPY WITH THE MONITORING AND CONTROLS IT WAS AS GOOD A RESULT AS WE COULD GET MARTIN BANGEMANN THE EC'S INDUSTRY COMMISSIONER REJECTED CRITICISM OF THE DEAL AS TOO GENEROUS TO STATEOWNED PRODUCERS THE FACT THAT WE'VE AGREED ON PRIVATIZATION IN ITALY SPAIN AND GERMANY I THINK THAT'S SOMETHING WE SHOULDN'T UNDERESTIMATE MR BANGEMANN SAID BUT MR VAN MIERT WHO HAD ARGUED FOR BIGGER CUTS IN THE STATEOWNED SECTOR DIDN'T HIDE HIS DISAPPOINTMENT WITH THE OUTCOME IF IT HAD BEEN UP TO THE COMMISSION ALONE IT WOULD HAVE BEEN ANOTHER DECISION MR VAN MIERT SAID HE BLAMED THE EC'S 1952 COAL AND STEEL TREATY WHICH REQUIRES UNANIMOUS APPROVAL FROM ALL 12 EC GOVERNMENTS IN SUBSIDY CASES INVOLVING THE STEEL INDUSTRY THAT MEANS THAT ANY GOVERNMENT WAS IN A POSITION OF PUSHING THROUGH ITS DEMANDS BY THREATENING TO VETO THE ENTIRE DEAL MR VAN MIERT'S JOB WON'T GET EASIER HOWEVER MORE RECENT EC TREATIES HAVE GIVEN THE COMMISSION WIDER REGULATORY POWERS BUT THE COAL AND STEEL TREATY ISN'T SCHEDULED TO BE PHASED OUT BEFORE 2002 9312200088 931220 MERRILL LYNCH FORMER LAZARD PARTNER FACE NEW CONFLICTOFINTEREST ALLEGATIONS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON THE STATE INSPECTOR GENERAL RAISED NEW ALLEGATIONS OF CONFLICT OF INTEREST BY MERRILL LYNCH & CO AND A FORMER ADVISER TO A STATE WATER AGENCY ONE OF THE NATION'S LARGEST MUNICIPALBOND ISSUERS SEPARATELY A MERRILL LYNCH EXECUTIVE AND OTHERS FAMILIAR WITH THE CASE CONFIRMED THAT BOTH THE US ATTORNEY HERE AND THE MASSACHUSETTS ATTORNEY GENERAL ARE INVESTIGATING THE MATTER THE STATE AND FEDERAL OFFICIALS ARE PROBING IMPROPRIETIES IN UNDERWRITING CONTRACTS AWARDED BY STATE AUTHORITIES ESPECIALLY THE MASSACHUSETTS WATER RESOURCES AUTHORITY WHICH IS EXPECTED TO ISSUE MORE THAN 6 BILLION IN BONDS TO HELP FINANCE THE CLEANUP OF BOSTON HARBOR THE CLOSELY WATCHED CASE HAS ILLUMINATED THE OFTEN COZY TIES BETWEEN BOND ISSUERS AND WALL STREET UNDERWRITERS AND HAS FUELED EFFORTS TO REFORM THE VAST AND LARGELY UNREGULATED MUNICIPALBOND BUSINESS AS A RESULT OF THIS AND OTHER RECENT CASES MASSACHUSETTS AND OTHER STATES HAVE BEGUN TO REQUIRE COMPETITIVE BIDDING BY UNDERWRITERS AND DISCLOSURE OF POTENTIAL CONFLICTS OF INTEREST WHILE RESTRICTING POLITICAL CONTRIBUTIONS BY SUCH FIRMS A REPORT ISSUED LAST WEEK BY ROBERT A CERASOLI THE STATE INSPECTOR GENERAL ALLEGES THAT MERRILL WAS IMPROPERLY GIVEN DETAILS OF ITS RIVALS' PROPOSALS DURING AN UNDERWRITING COMPETITION HELD BY THE WATER AUTHORITY AT THE TIME MR CERASOLI ALLEGES MERRILL WAS FUNNELING BUSINESS TO THE AUTHORITY'S BOND ADVISER MARK S FERBER WHO PROVIDED THE INFORMATION MR FERBER AND MERRILL WERE FIRED BY THE AUTHORITY IN JULY AFTER PREVIOUSLY SECRET TERMS OF THIS RELATIONSHIP INCLUDING A FEESPLITTING ARRANGEMENT AND AN 800000 ANNUAL RETAINER PAID BY MERRILL TO MR FERBER WERE FIRST REPORTED AT THE TIME MR FERBER WAS HEAD OF THE BOSTON OFFICE OF LAZARD FRERES & CO THE INSPECTOR GENERAL ALLEGES THAT IN RETURN FOR MR FERBER'S SECRET HELP IN WINNING HIS CLIENT'S BUSINESS MERRILL WAS FEEDING MR FERBER BUSINESS FROM OTHER ISSUERS AROUND THE COUNTRY MR CERASOLI QUOTES A MERRILL OFFICIAL AS SAYING THAT MR FERBER WANTED THE FIRM TO DELIVER MORE BUSINESS TO HIM ESPECIALLY OUTSIDE NEW ENGLAND THE MERRILL OFFICIAL IS QUOTED AS SAYING OF MR FERBER WITHOUT A RETURN ON HIS INVESTMENT HE WILL HURT US MERRILL ON FRIDAY ISSUED A SCATHING ATTACK ON THE INSPECTOR GENERAL CALLING HIS ALLEGATIONS FALSE UNINFORMED AND POLITICALLY MOTIVATED THE FIRM DENIED GETTING INSIDE INFORMATION IN THE WATER AGENCY'S SELECTION PROCESS SAID THE FEES IT CHARGED THE AGENCY WERE COMPETITIVE AND INSISTED THAT THERE WAS NO QUID PRO QUO EXCHANGE OF BUSINESS FOR SUPPORT BY THE MWRA FINANCIAL ADVISER MR FERBER LAZARD HOWEVER DISTANCED ITSELF FROM MR FERBER AND MERRILL THERE ARE VERY DISTURBING ALLEGATIONS IN THE REPORT A LAZARD SPOKESMAN SAID YESTERDAY IF THEY ARE TRUE HE SAID THEY SUGGEST THAT A FORMER PARTNER MARK FERBER ENGAGED IN UNETHICAL CONDUCT WITHOUT OUR KNOWLEDGE AND ABSOLUTELY INCONSISTENT WITH THE WAY OUR FIRM CONDUCTS ITS BUSINESS THE SPOKESMAN ALSO SAID THAT IF THE ALLEGATIONS ARE TRUE LAZARD FRERES HAS BEEN MISLED CONCERNING THE NATURE OF MR FERBER'S RELATIONSHIP WITH MERRILL LYNCH AND HIS DISCLOSURE OF THAT RELATIONSHIP TO HIS CLIENTS MR FERBER LEFT LAZARD FOR FIRST ALBANY COS IN EARLY 1993 AND WAS THEN DISMISSED FROM FIRST ALBANY SHORTLY AFTER HE WAS FIRED AS THE WATER AGENCY'S ADVISER THE AGENCY ACTED AFTER THE BOSTON GLOBE REPORTED A SECRET FEESPLITTING AGREEMENT UNDER WHICH LAZARD AND MR FERBER GOT AT LEAST 28 MILLION FROM MERRILL AT A TIME WHEN HE WAS SUPPOSED TO BE PROVIDING IMPARTIAL ADVICE TO THE AGENCY MERRILL ALREADY HAD WON 1 BILLION OF THE WATER AGENCY'S UNDERWRITING BUSINESS MR FERBER COULDN'T BE REACHED FOR COMMENT HIS ATTORNEY THOMAS E DWYER JR CALLED THE INSPECTOR GENERAL'S REPORT OUTRAGEOUSLY ERRONEOUS INCOMPLETE AND OUT OF CONTEXT AND SAID HE HAD FILED A COMPLAINT OF CRIMINAL MISCONDUCT BY THE INSPECTOR GENERAL BECAUSE THE STATE OFFICIAL HE ALLEGED HAD RELEASED DOCUMENTS TO THE PRESS THAT WERE OBTAINED UNDER THE SAFEGUARDS OF GRAND JURY SECRECY 9312200087 931220 TECHNOLOGY & HEALTH WHITE HOUSE SEEKS CELESTE TO HEAD HEALTHCARE PUSH BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE IS COURTING FORMER OHIO GOV RICHARD CELESTE TO COORDINATE ITS CAMPAIGN TO WIN CONGRESSIONAL SUPPORT FOR HEALTHCARE REFORM CLINTON ADMINISTRATION OFFICIALS SAY MR CELESTE HAS EMERGED AS THE EARLY FAVORITE TO FILL THE POST THAT NEW YORK ATTORNEY HAROLD ICKES HAD BEEN EXPECTED TO TAKE IN A SURPRISING MOVE LAST WEEK MR ICKES TOLD FRIENDS AND THE WHITE HOUSE THAT HE WOULD DECLINE THE POST ALTHOUGH THERE REMAINS A GLIMMER OF HOPE THAT HE WILL RECONSIDER IN ANY EVENT IT'S UNCLEAR WHETHER MR CELESTE WANTS THE JOB FRIENDS SAY MR CELESTE EARLIER HAD INDICATED HE WAS CONTENT LEADING THE HEALTHCARE CAMPAIGN FOR THE DEMOCRATIC NATIONAL COMMITTEE ACCEPTING A WHITE HOUSE POST THEY SAY WOULD REQUIRE A MORE DISTANT RELATIONSHIP WITH HIS CONSULTING FIRM IN OHIO AND KEEP HIM AWAY LONGER FROM HIS FAMILY MEMBERS WHO LIVE THERE IN ADDITION MR CELESTE MAY HARBOR THE SAME RESERVATION ABOUT THE JOB THAT IS SAID TO HAVE INFLUENCED MR ICKES A LACK OF AUTHORITY WHILE MR ICKES HAS TOLD FRIENDS HIS DECISION WAS BASED ON FAMILY CONSIDERATIONS HE WAS ALSO KNOWN TO BE CONCERNED ABOUT HOW HIS POST WOULD INTERTWINE WITH HEALTHCARE CZAR IRA MAGAZINER FIRST LADY HILLARY RODHAM CLINTON AND THE WHITE HOUSE BUREAUCRACY DESPITE MR CLINTON'S RECENT VICTORIES MANY DEMOCRATS INSIDE AND OUT OF THE WHITE HOUSE STILL COMPLAIN ABOUT THE LACK OF DISCIPLINE ON HIS STAFF PARTICULARLY THE FACT THAT SO MANY DECISIONS CAN BE APPEALED DIRECTLY TO THE PRESIDENT MR ICKES A DEAR FRIEND OF BOTH CLINTONS HAS WITNESSED THE CLINTONS' TENDENCY TO MICROMANAGE WHEN MR ICKES ORGANIZED THE DEMOCRATIC NATIONAL CONVENTION IN NEW YORK LAST YEAR MRS CLINTON TOLD HIM OF NUMEROUS CHANGES SHE WANTED IN THE SCHEDULING AND PHYSICAL LAYOUT MR ICKES ACCORDING TO FRIENDS BLUNTLY TOLD MRS CLINTON THAT IF SHE WANTED TO DO THE JOB SHE COULD HAVE HIS OFFICE MANY OF THE INTRUSIONS STOPPED THE NEW YORK LABOR LAWYER IS VALUED AS A TOUGH NEGOTIATOR AND DISCIPLINARIAN ALTHOUGH MR ICKES IS A LIBERAL THE PRESIDENT AND MORE MODERATE POLITICAL ADVISERS WERE PULLING FOR HIM BECAUSE THEY WANTED BETTER ORGANIZATION IN THE WHITE HOUSE WITH MR ICKES OUT OF THE PICTURE FOR NOW THE WHITE HOUSE IS LOOKING TO FILL THE HEALTH POST AND HIRE A DEPUTY CHIEF OF STAFF TO OVERSEE POLITICAL AFFAIRS THE NEW POST ADMINISTRATION OFFICIALS SAY IS AIMED AT BRINGING MORE ORDER TO THE WHITE HOUSE ANOTHER HOPE FOR IMPROVING STAFF COORDINATION LIES WITH A REPORT BEING COMPILED BY THE OFFICE OF MANAGEMENT AND BUDGET WHICH IS REVIEWING OPERATIONS WHITE HOUSE STAFFERS WHO WERE INTERVIEWED BY THE BUDGET OFFICE WERE SAID TO HAVE COMPLAINED THAT THEIR BOSSES HAVE LITTLE AUTHORITY AND THAT THERE ARE TOO MANY MEETINGS WITHOUT DECISIONS 9312200086 931220 BRENT WALKER GETS FIVEYEAR EXTENSION ON WILLIAM HILL DEBT SPECIAL TO THE WALL STREET JOURNAL LONDON BRENT WALKER GROUP PLC OF THE UK SAID IT OBTAINED A FIVEYEAR EXTENSION ON DEBTS OWED BY ITS WILLIAM HILL GROUP UNIT BANKS LED BY LLOYDS BANK AND STANDARD CHARTERED AGREED TO EXTEND THE REPAYMENT DATE OF WILLIAM HILL'S BORROWINGS THAT CURRENTLY ARE DUE MARCH 1 TO 1999 THE EXTENSION MEANS THE GROUP NO LONGER IS CONSIDERING ALTERNATIVE PROPOSALS TO RESCUE IT FROM ITS FINANCING PREDICAMENT BRENT WALKER SAID AMONG THESE OPTIONS WERE A FLOTATION SALE OF WILLIAM HILL TO VENTURE CAPITALISTS OR TO ANOTHER COMPANY WILLIAM HILL IS A BETTING CHAIN DEBTLADEN BRENT WALKER HAS BEEN BATTLING TO WIN SOME REPRIEVE FROM BANKS FOR YEARS BRENT WALKER AS A GROUP HAS BORROWINGS OF 137 BILLION 204 BILLION WILLIAM HILL OWES SOME 350 MILLION 5205 MILLION TO ITS BANKS THE DEBT DATES FROM A SYNDICATED LOAN TO FUND ITS ACQUISITION IN 1989 FROM GRAND METROPOLITAN PLC THIS THUS FAR HAS BEEN RINGFENCED OR SET APART FROM BRENT WALKER'S OTHER OPERATIONS BUT WITH THIS DEBT EXTENSION THAT SEPARATION WHICH HAS PREVENTED BRENT WALKER'S CREDITORS FROM LAYING CLAIM TO WILLIAM HILL AND ITS ASSETS IS TO BE LIFTED BRENT WALKER HAS REQUESTED THIS FROM WILLIAM HILL'S CREDITORS AS PART OF THE AGREEMENT IN TAKING ON THE REFINANCING SOURCES INVOLVED IN THE NEGOTIATIONS SAID APPROVAL IS EXPECTED 9312200085 931220 YOUR MONEY MATTERS TAPPING YOUR RETIREMENT ASSETS FOR SOME RETIREES TAKING OUT FUNDS IN PERIODIC PAYMENTS MAY MAKE SENSE BY DEBORAH LOHSE STAFF REPORTER OF THE WALL STREET JOURNAL LUMP IT OR LEAVE IT THAT'S THE PRIMARY CHOICE FACING RETIRING WORKERS WHO MUST DECIDE BETWEEN WITHDRAWING THEIR HARDEARNED COMPANY RETIREMENT MONEY IN A SINGLE LUMP SUM OR LEAVING IT WITH THE COMPANY AND RECEIVING IT IN A STREAM OF MONTHLY PAYMENTS TYPICALLY OVER THEIR LIFETIME FOR SOME PEOPLE PARTICULARLY THOSE WHO FANCY THEMSELVES SOPHISTICATED INVESTORS OR HAVE ACCESS TO TRUSTWORTHY INVESTMENT ADVICE WITHDRAWING THEIR ENTIRE COMPANY ACCOUNT IN ONE BIG LUMP SUM SEEMS THE ONLY WAY TO GO AS LONG AS THEY HAVE THE MONEY TRANSFERRED DIRECTLY TO AN INDIVIDUAL RETIREMENT ACCOUNT THEY CAN AVOID HAVING 20 WITHHELD FOR TAXES AND THE FULL AMOUNT CAN CONTINUE TO GROW TAXDEFERRED IN INVESTMENTS OF THEIR CHOICE WHEN THEY NEED MONEY TO LIVE ON THEY CAN CASH IN SOME OF THOSE IRA INVESTMENTS PAYING ORDINARYINCOME TAX RATES ON JUST THE MONEY THEY TAKE OUT BUT MANY OTHERS FIND HAVING TO FIGURE OUT HOW TO INVEST ALL THAT MONEY SO IT WILL LAST A LIFETIME WHILE PROVIDING ENOUGH TO LIVE ON TO BE A NIGHTMARISH PROSPECT THEY SIMPLY DON'T WANT THE RESPONSIBILITY OF BEING THEIR OWN PENSION ACTUARY AND MONEY MANAGER FOR MANY OF THOSE PEOPLE THERE IS ANOTHER ALTERNATIVE INSTEAD OF A LUMP SUM THEY CAN USUALLY OPT FOR PERIODIC PAYMENTS EITHER OVER A SET AMOUNT OF TIME OR FOR LIFE PEOPLE WITH A TRADITIONAL COMPANY PENSION WHICH GUARANTEES A CERTAIN DEFINED BENEFIT AT RETIREMENT TYPICALLY HAVE THE OPTION OF CHOOSING AN ANNUITY WHICH PAYS FIXED AMOUNTS OVER THE RETIREE'S LIFE SOME RETIREES WITH 401KS OR PROFITSHARING PENSION PLANS MAY ALSO HAVE THE FREEDOM TO SELECT AN ANNUITY THE CERTAINTY OF LIFETIME PAYMENTS MEANS A LOT TO SOME PEOPLE SAYS RICK GRAFMEYER A TAX ATTORNEY IN THE NATIONAL TAX OFFICE OF ERNST & YOUNG IN WASHINGTON FOR RETIREES WITH PROFITSHARING PLANS AND 401KS THE MORECOMMON PERIODICPAYMENT OPTION IS AN INSTALLMENT PLAN THAT ALLOWS THEM TO WITHDRAW THEIR ACCOUNT BALANCE OVER PERHAPS FIVE 10 OR 15 YEARS THE INSTALLMENT OPTION IS DIFFERENT FROM AN ANNUITY IN THAT INSTALLMENT PAYMENTS WILL LAST ONLY THE NUMBER OF YEARS THE RETIREE DICTATES RATHER THAN HIS OR HER LIFETIME PEOPLE WITH PROFITSHARING AND 401K PLANS MAY BE ABLE TO DELAY THE DECISION BY LEAVING THE MONEY ACCUMULATED IN THEIR ACCOUNT WITH THE COMPANY TO GROW FOR FIVE TO 10 MORE YEARS AFTER THEY RETIRE A TAXLAW CHANGE THAT TOOK EFFECT THIS YEAR ALLOWS RETIREES CHOOSING INSTALLMENTS TO SHUNT THE PAYMENTS STRAIGHT INTO AN IRA TO CONTINUE THE TAX DEFERRAL ON THE SUM PREVIOUSLY YOU HAD TO WITHDRAW AT LEAST HALF OF YOUR PLAN BALANCE IN ORDER TO HAVE THE ROLLOVER OPTION IF THE INSTALLMENTS LAST LONGER THAN 10 YEARS HOWEVER THEY STILL DON'T QUALIFY FOR A ROLLOVER THUS UNDER THE NEW LAW IF A RETIREE'S INITIAL PLAN FOR THE FIRST FIVE YEARS OF RETIREMENT WAS TO LIVE ON INSTALLMENT PAYOUTS FROM HIS 401K AND HE LATER FOUND THAT HE DIDN'T REALLY NEED THAT MUCH CASH HE COULD CHOOSE TO HAVE AN INSTALLMENT OR TWO TRANSFERRED DIRECTLY TO AN INDIVIDUAL RETIREMENT ACCOUNT SO IT COULD CONTINUE TO GROW TAXDEFERRED THE NEW RULES ALLOW MORE FLEXIBILITY SAYS JEFFREY DAVIS A DIRECTOR IN THE HUMAN RESOURCE ADVISORY GROUP OF COOPERS & LYBRAND IN WASHINGTON THE BIG ARGUMENT AGAINST ANNUITIES AND INSTALLMENT PAYMENTS IS THAT INFLATION CAN ERODE THEIR VALUE OVER TIME UNLIKE SOCIAL SECURITY PAYMENTS FOR INSTANCE MOST PENSION ANNUITIES DON'T INCREASE AUTOMATICALLY WITH INFLATION MANY PLANNERS ADVISE THAT IF RETIREES WHO ARE CONTEMPLATING ANNUITIES FOR THEIR PENSION DON'T HAVE OTHER INVESTMENTS THAT ARE GROWING PREFERABLY UNTAPPED AND TAXDEFERRED WELL INTO RETIREMENT THEY SHOULD SEE A TRUSTED FINANCIAL COUNSELOR STILL MANY RETIREES RELY ON PERIODIC PAYMENTS FROM COMPANYSPONSORED RETIREMENT PLANS AS PART OF THEIR OVERALL PLANNING THE MOST COMMON WAY THEY GET THOSE PAYMENTS IS BY USING ANNUITIES TYPICALLY WITH A PENSION ANNUITY YOU CAN ARRANGE TO GET PAYMENTS BASED ON YOUR OWN LIFE EXPECTANCY WHICH IS KNOWN AS A SINGLELIFE ANNUITY OR YOU CAN GET PAYMENTS BASED ON YOUR OWN LIFE EXPECTANCY AND YOUR SPOUSE'S AS WELL IN WHAT IS KNOWN AS A JOINTANDSURVIVOR ANNUITY WITH JOINTANDSURVIVOR ANNUITIES YOU CAN ARRANGE THAT AFTER YOU DIE YOUR SPOUSE RECEIVES EITHER THE FULL MONTHLY AMOUNT YOU HAD BEEN GETTING OR SOME PORTION OF IT COMMONLY 50 OR 75 GENERALLY THE GREATER THE MONTHLY BENEFIT FOR THE SURVIVOR THE LOWER THE RETIREE'S CHECK WILL BE THE LAW REQUIRES THAT MARRIED COUPLES SELECTING AN ANNUITYWITHDRAWAL OPTION USE SOME FORM OF JOINTANDSURVIVOR ANNUITY UNLESS BOTH SPOUSES WAIVE IT IN WRITING WHICHEVER ANNUITY DECISION A RETIREE MAKES WILL GENERALLY BE IRREVOCABLE NOTES LEN CARUSI DIRECTOR OF RETIREMENTPLAN CONSULTING AT BENEFITS COUNSELORS HIRSCHFELD STERN MOYER & ROSS IN NEW YORK THUS RETIREES NEED TO LOOK CLOSELY AT HOW MUCH INCOME THEY NEED BOTH IMMEDIATELY AND LONG TERM BEFORE MAKING THEIR CHOICE HERE'S HOW IT WORKS SAY A 65YEAROLD MAN RETIRING AFTER 30 YEARS WITH A PENSION OF 50000 A YEAR COULD GET 4167 A MONTH IF HE RECEIVED HIS PENSION OVER HIS LIFETIME ALONE IF THAT RETIREE WANTED TO SEE TO IT THAT HIS 60YEAROLD SPOUSE CONTINUED RECEIVING MONTHLY CHECKS AFTER HE DIED HE COULD SELECT A JOINT AND 50 ANNUITY THAT PAID HIM A LOWER AMOUNT 3705 A MONTH BUT AFTER HIS DEATH WOULD PAY HIS WIFE 50 OR 1853 A MONTH FOR THE REST OF HER LIFE IF THE RETIREE WANTED HIS WIFE TO HAVE A LARGER MONTHLY CHECK AFTER HE DIED HE COULD OPT FOR A JOINT AND 100 ANNUITY WHICH WOULD PAY THEM BOTH 3335 FOR LIFE IF THE SPOUSE WERE IN BAD HEALTH HOWEVER THE COUPLE MIGHT NOT WANT TO PICK A JOINT AND SURVIVOR ANNUITY AT ALL IF AFTER HE HAD OPTED FOR SUCH AN ANNUITY THE WIFE DIED BEFORE HER RETIREE HUSBAND HE'D BE OUT OF LUCK SAYS MR CARUSI NOT ONLY WOULD THE SURVIVOR BENEFIT HE PROVIDED FOR HIS WIFE NEVER BE PAID BUT THE RETIREE COULDN'T GO BACK AND OPT FOR THE HIGHER SINGLELIFE PAYMENTS IF YOU'RE LIKELY TO OUTLIVE YOUR SPOUSE YOU MIGHT NOT WANT TO REDUCE YOUR BENEFIT BY CHOOSING A JOINTANDSURVIVOR ANNUITY SAYS MR CARUSI COUPLES MIGHT ALSO PICK THE LARGER PAYOUTS FROM A SINGLELIFE ANNUITY IF BOTH SPOUSES EXPECT TO GET A FULL PENSION THAT WILL ADEQUATELY PROVIDE FOR EACH OF THEM FOR LIFE 9312200084 931220 REVIEW & OUTLOOK EDITORIAL BACK TO THE WARD ONE OF THE DIFFICULTIES OF HEALTH CARE REFORM OR ANY SOCIAL REFORM IS SQUARING IDEALS WITH THE REAL WORLD IN NEW YORK CITY NO DOUBT A LEADING CANDIDATE FOR ANYONE'S HEALTH REFORM MOUNT SINAI MEDICAL CENTER WOKE UP ONE DAY RECENTLY TO FIND ITSELF DISAPPEARING THROUGH THE REFORMERS' LOOKING GLASS IT'S QUITE A TALE THE OLD MANHATTAN TEACHING HOSPITAL SERVES ALL KINDS OF COMMUNITIES FROM WEALTHIER EAST SIDE CITIZENS TO THOSE OF THE CITY'S POORER EAST HARLEM IN ONE OF THE HAPPIER AND EVER RARER COINCIDENCES OF MODERN URBAN LIFE WORLDCLASS DOCTORS AND THEIR STUDENTS WHO HAVE CONGREGATED TO SERVE PAYING PATIENTS AT MOUNT SINAI ARE ALSO AROUND TO SERVE LESS PRIVILEGED CUSTOMERS THE HOSPITAL FOR EXAMPLE IS FAMOUS FOR ITS NEONATAL INTENSIVE CARE UNIT WHICH BENEFITS POOR BABIES THE KIND WHO ARE OFTEN BORN TOO TINY ALONG WITH WEALTHY ONES THEN ONE DAY RECENTLY THE HEADLINE SEGREGATED AT BIRTH LOOMED ACROSS THE FRONT PAGE OF A LOCAL BACHELOROWNED TABLOID THE STORY CHARGED THAT THE HOSPITAL ISOLATED NEW BLACK AND HISPANIC MOTHERS FOURTOAROOM ON THE FOURTH FLOOR OF ONE WING WHILE CARING FOR MAINLY WHITE MOTHERS IN FANCIER SEMIPRIVATE AND PRIVATE ROOMS ONE FLOOR ABOVE ON CUE THE NEW YORK STATE DEPARTMENT OF HEALTH ORDERED IN A POSSE OF INSPECTORS WHO IN TURN DEEMED THE HOSPITAL'S SETUP SURPRISE DISCRIMINATORY MOUNT SINAI'S FOURTH FLOOR DID HAVE FEWER AMENITIES AND MORE MINORITY MOTHERS THAN ITS FIFTH FLOOR IT DID PUT SOME MOTHERS FOUR TO A ROOM WHILE MOTHERS WERE PAIRED ON THE FIFTH FLOOR PRESUMABLY THIS IS ALL ONE NEEDS TO KNOW TO CONCLUDE THAT MOUNT SINAI'S MEDICAL STAFF IS ENGAGED IN OVERT VIOLATIONS OF SOCIAL JUSTICE BUT WE'LL ADD A DETAIL MOUNT SINAI IS PART OF THE FEDERAL MEDICAID PROGRAM REIMBURSEMENTS FOR MEDICAID MOMS AND THEIR OFFSPRING DON'T ENTIRELY COVER THE HOSPITAL'S AND DOCTOR'S COSTS ONE OBSTETRICIAN AT THE HOSPITAL NOTED THAT THE MEDICAID REIMBURSEMENT FOR ANESTHETICS FREQUENTLY ADMINISTERED DURING DELIVERY BARELY PAID FOR THE DRUGS AND EQUIPMENT ALONE WITH LITTLE LEFT OVER FOR THE DOCTOR'S WORK TO ENSURE EQUAL QUALITY OF MEDICAL CARE THE HOSPITAL SKIMPED A BIT ON THE FRILLS FOR THE POORER MOTHERS MANY OF WHOM HAPPEN TO BE BLACK AND ON MEDICAID NOW IS WHAT IS GOING ON HERE RACISM OR DISCRIMINATION ASSUMING THOSE TERMS ANY LONGER HAVE A COMMON MEANING IN OUR POLITICAL OR SOCIAL DISCOURSE THE LEVEL OF FINANCIAL TRANSFER FROM RICHER TO POORER IN MATERNITY CARE IS SUBSTANTIAL INSURED PATIENTS HELP MEDICAID PATIENTS ONCE THROUGH THEIR TAXES WHICH IN NEW YORK HAPPEN TO BE THE NATION'S HIGHEST THEY AND THEIR EMPLOYERS CROSSSUBSIDIZE AGAIN BY PAYING HOSPITAL FEES THAT ARE INFLATED TO COVER FOR HOSPITAL LOSSES ASSOCIATED WITH MEDICAID AS WELL AS ADDITIONAL LOSSES THAT RESULT FROM STRAPPED PATIENTS OR PEOPLE WHOSE BILLS ARE NOT GOING TO GET PAID AT ALL THE HIGH FEES MOUNT SINAI CHARGES PAYING PATIENTS 2000 FOR A TWONIGHT STAY PLUS 600 OR SO EXTRA FOR TWO NIGHTS IN A PRIVATE ROOM HELPED FUND THE CARE FOR THE LESS FORTUNATE MOTHERS ON THE FOURTH FLOOR PART OF THAT 600 EXTRA WAS A SMALL STEP TOWARD PAYING FOR THE 20000 OR MULTIPLE OF THAT IT TAKES TO KEEP ALIVE A CRACKADDICTED PREMATURELY BORN INFANT A PROBLEM WIDELY PUBLICIZED BY NEW YORK'S MEDIA MOUNT SINAI IS ONLY A HOSPITAL NOT A DEBATING SOCIETY SO ITS RESPONSE TO THE ATTACK WAS A BLITZ OF APOLOGIES WE REGRET DEEPLY AND AN AWKWARD LEAP INTO THE ACROBATICS OF POLITICAL CORRECTNESS IT BEGAN PUTTING HALF THE PAYING MOMS INCLUDING SOME OF THOSE WHO HAD MADE THE DEPOSIT FOR A PRIVATE ROOM INTO THE MORE SPARTAN FOURTH FLOOR IT HAS INTEGRATED PUBLIC PATIENTS BY PUTTING SOME OF THEM ON THE FIFTH FLOOR THE HOSPITAL DOUBTLESS SOON WILL BE REPROGRAMMING RESOURCES IT NEEDS TO SPEND ON MONITORING TEEN MOMS' PRETERM LABOR INTO PAINT AND EXTRA BATHROOMS THE DISPARITY BETWEEN THE TWO FLOORS WAS IN ANY CASE NEVER REALLY THAT GREAT ONE PATIENT WE KNOW FOUND THE NURSING CARE OF FLOOR FOUR SUPERIOR IN PART BECAUSE THE NURSES THERE HAVE GREATER EXPERIENCE DEALING WITH COMPLICATED AND DIFFICULT CASES DR ELLIOTT GELLMAN A SENIOR ATTENDING OBSTETRICIAN AND GYNECOLOGIST WHOSE PATIENTS DELIVER AT MOUNT SINAI TOLD US THAT THE QUALITY OF NURSING CARE ON THE FOURTH FLOOR IS ON A PAR WITH ANY THROUGHOUT THE HOSPITAL HERE'S THE REALITY OF THIS REFORM IF PATIENTS CAN'T STAY IN THE PRIVATE OR SEMIPRIVATE ROOMS FOR WHICH THEY AND THEIR EMPLOYERS ARE PAYING HUGE FEES THEY WILL GO TO THE NEARBY SUBURBS TO DELIVER THAT KIND OF PATIENT FLIGHT STRANGLES A MOUNT SINAI WHICH LIKE OTHER CITY HOSPITALS NEEDS PRIVATELY INSURED PATIENTS TO STAY ALIVE AND TO RETAIN THE DOCTORS WHO HAVE BUILT THAT FABULOUS NEONATAL UNIT FOR POOR MOTHERS IF THERE IS INDEED ANYTHING APPROACHING A CRISIS IN US HEALTH CARE BIG URBAN HOSPITALS IS WHERE YOU'LL FIND IT THE KIND OF LEVELING LIBERAL IDEALISM THAT DESCENDED ON MOUNT SINAI'S MATERNITY FLOORS WILL ONLY DEEPEN THE CRISIS 9312200082 931220 COMMODITIES SOME ANALYSTS BELIEVE INDUSTRIAL METALS PRICES MAY CLIMB EVEN HIGHER DESPITE RECENT STRENGTH BY NEIL BEHRMANN STAFF REPORTER OF THE WALL STREET JOURNAL LONDON LONGMORIBUND INDUSTRIAL METALS HAVE BEEN SHOWING SIGNS OF LIFE LATELY IN YET ANOTHER INSTANCE OF THE REVIVAL GOING ON IN WORLD COMMODITY MARKETS FROM THEIR LOWS IN EARLY FALL NICKEL AND LEAD PRICES HAVE SURGED BY 35 ZINC BY 19 TIN 17 ALUMINUM 13 AND COPPER 10 PRICES EASED SLIGHTLY LAST WEEK BUT MOST BASE METALS ARE STILL OUTPERFORMING GOLD WHICH ITSELF IS UP 13 FROM ITS SEPTEMBER LOW OF 342 AN OUNCE ECONOMISTS AND ANALYSTS PAY CLOSE ATTENTION TO THE PRICE OF BASE METALS THE PERFORMANCES OF THESE METALS LIKE THOSE OF OTHER INDUSTRIAL COMMODITIES SUCH AS LUMBER ARE THOUGHT TO PROVIDE CLUES ABOUT THE STATE OF INDUSTRY AND CONSEQUENTLY THE STATE OF THE GLOBAL ECONOMY DESPITE THEIR RECENT PRICE SURGE PRICES OF MOST BASE METALS ARE STILL ONLY ABOUT HALFWAY TO THE PEAKS HIT DURING THE LATE 1980S ANALYSTS NOTE FOR THIS REASON SOME MARKET WATCHERS BELIEVE THE RALLY IN METALS PRICES IS LIKELY TO CONTINUE JULIAN BARING DIRECTOR OF MERCURY WORLD MINING TRUST A CLOSEDEND LONDON TRUST THAT INVESTS IN BASE AND PRECIOUS METALS STOCKS IS AMONG THOSE WHO THINK BASE METALS ARE UNDERVALUED DURING THE AUTUMN METALS PRICES IN REALINFLATIONADJUSTED TERMS WERE THE LOWEST SINCE THE '30S MR BARING SAYS CERTAINLY INVESTORS HAVE DISPLAYED RENEWED ENTHUSIASM FOR BASE METALS AND THE SHARES OF COMPANIES THAT PRODUCE THEM EVIDENCE OF THIS CAN BE FOUND IN THE REACTION OF INVESTORS TO THE RECENT LAUNCH OF MR BARING'S MERCURY TRUST THE TRUST RAISED 633 MILLION IN ITS INITIAL OFFERING MR BARING SAYS BROKERS SAY IT WAS THE BIGGEST LAUNCH EVER FOR ANY CLOSEDEND TRUST IN BRITAIN THE ENTHUSIASM FOR THE TRUST ANALYSTS SAY ALSO HELPED TO PUSH UP BASE METALS PRICES THEMSELVES THERE ARE OTHER REASONS FOR THE RECENT GAINS IN BASE METALS PRICES SOME METALS PRODUCERS CURTAILED THEIR OUTPUT BECAUSE OF THE RECENT LOW PRICES AND MANY INDUSTRIAL CONSUMERS DECIDED TO BUY METALS TO LOCK IN SUPPLIES AT LOW PRICES AT ITS LOW OF 183 A POUND NICKEL WAS TRADING AT ONLY ABOUT TWOTHIRDS OF WHAT IT COSTS TO PRODUCE IT IT WAS AN ATTRACTIVE BUY AT THAT PRICE FOR COMPANIES THAT USE NICKEL IN MANUFACTURING ANALYSTS SAY MEANWHILE THE WORLD'S LEADING NICKELMINING CONCERNS NORILSK IN RUSSIA AND INCO LTD IN CANADA SLASHED PRODUCTION IN AN EFFORT TO PUSH PRICES HIGHER AS SUPPLYANDDEMAND FORCES ACHIEVED A BETTER BALANCE AND TRADERS HEARD ABOUT THE HUGE FLOW OF MONEY INTO MR BARING'S METALS TRUST COMMODITY FUNDS MANAGED POOLS OF INVESTOR MONEY AND OTHER BIG INVESTORS ALSO BECAME BUYERS OF BASE METALS DEALERS SAY STOCK PRICES OF MOST BASE METALS PRODUCERS ARE TRADING AT THEIR 1993 HIGHS AND ALREADY REFLECT MUCH HIGHER BASE METALS PRICES MR BARING SAYS SO MUCH SO HE ADDS WRYLY THAT SEVERAL MINERS ARE ISSUING SHARES TO INVESTORS WILLING TO PAY HIGH PRICES DESPITE AN OPERATING LOSS IN THE THIRD QUARTER INCO'S SHARES ARE UP 49 FROM THEIR 12MONTH LOWS ALUMINIUM CO OF CANADA LTD IS 38 HIGHER US COPPER MINERS ASARCO INC AND PHELPS DODGE CORP ARE UP BY 32 AND BY 23 RESPECTIVELY COMINCO LTD A CANADIAN ZINC AND LEAD PRODUCER HAS RISEN 35 AND RTZ PLC THE BIGGEST INTERNATIONAL MINING COMPANY HAS SOARED 31 FROM ITS LOWS DESPITE THE RISE IN METALS PRICES AND METALS STOCK PRICES THE OUTLOOK MAY NOT BE ENTIRELY ROSY ONE NEGATIVE NOTE ON METALS PRICES IS THE WEAKNESS OF THE JAPANESE EUROPEAN AND THE CHINESE ECONOMIES BUYING BY THESE BIG TRADITIONAL CONSUMERS OF BASE METALS HASN'T BEEN BRISK ENOUGH TO PREVENT STOCKPILES OF METALS FROM RISING RAPIDLY AT THE LONDON METALS EXCHANGE WITH THE EXCEPTION OF LEAD IN WHICH PRODUCERS ARE NOW CURTAILING OUTPUT AND BATTERY MANUFACTURERS ARE BUYING HUGE QUANTITIES AS RAW MATERIALS THE SUPPLYANDDEMAND FUNDAMENTALS FOR METALS REALLY HAVEN'T IMPROVED MUCH SAYS ANGUS MACMILLAN HEAD OF RESEARCH AT BILLITONENTHOVEN METALS LTD A LONDON METALS DEALER TO ME IT IS A BEARMARKET RALLY MR MACMILLAN SAYS HE NOTES THAT LONDON METAL EXCHANGE COPPER STOCKS ROSE TO 587000 METRIC TONS ON FRIDAY FROM 342000 AT THE END OF LAST YEAR ALUMINUM TO 243 MILLION FROM 873000 ZINC TO 884000 FROM 420000 LEAD TO 300000 FROM 86000 NICKEL TO 122000 FROM 52000 AND TIN TO 19000 METRIC TONS COMPARED WITH 15000 IN DECEMBER 1992 RISING METALS STOCKS AT THE LONDON EXCHANGE ARE SEEN AS AN INDICATION OF SLUGGISH WORLD DEMAND FOR METALS TO BE SURE COPPER INVENTORIES ARE FALLING ON NEW YORK'S COMMODITY EXCHANGE IN PART BECAUSE THE US ECONOMY IS IN BETTER SHAPE THAN THE ECONOMIES OF OTHER COUNTRIES AND US INDUSTRY HAS BEEN BUOYANTLY BUYING COPPER YET A DETAILED REPORT BY MR MACMILLAN ARGUES THAT SUPPLIES OF COPPER WILL OUTPACE ORDERS WORLDWIDE HE SAYS HE ADDS THAT A SUSTAINED COPPER PRICE INCREASE ISN'T LIKELY UNTIL THE FOURTH QUARTER OF 1994 THE SAME APPLIES TO OTHER METALS MR MACMILLAN SAYS WHILE WORLDWIDE COPPER INVENTORIES ARE EQUIVALENT TO NINE WEEKS CONSUMPTION IT WILL TAKE 14 WEEKS TO CONSUME ZINC STOCKS 15 WEEKS FOR ALUMINIUM AND 22 WEEKS FOR NICKEL HE SAYS BUT FEW EXPECT METALS PRICES TO RETREAT TO THEIR LOW LEVELS OF EARLY FALL IT IS HIGHLY LIKELY THAT WE HAVE SEEN THE PRICE LOWS OF THIS CYCLE SAYS TED ARNOLD ANALYST AT MERRILL LYNCH IN LONDON 9312200081 931220 BUSINESS BRIEFS BANC ONE CORP COMPLETED THE ACQUISTION OF FIRST FINANCIAL ASSOCIATES INC KENOSHA WIS IN A STOCK SWAP UNDER THE TRANSACTION 1976692 SHARES OF BANC ONE COMMON SHARES WERE EXCHANGED FOR 1394000 SHARES OF FIRST FINANCIAL CARDINAL DISTRIBUTION INC COMPLETED ITS PURCHASE OF ALL OF THE STOCK OF PRN SERVICES INC MADISON HEIGHTS MICH TERMS WEREN'T DISCLOSED CARNIVAL CORP SIGNED A LETTER OF UNDERSTANDING WITH A FINNISH SHIPYARD KVAERNER MASAYARDS TO BUILD A NEW CRUISE SHIP FOR ITS CARNIVAL CRUISE LINES UNIT FOR ABOUT 270 MILLION CORESTATES FINANCIAL CORP COMPLETED THE ACQUISITION OF INTER COMMUNITY BANCORP SPRINGFIELD NJ FOR ABOUT 16 MILLION IN STOCK MOTOROLA INC WILL PAY ABOUT 111 MILLION FOR THE SILICON WAFER FABRICATION FACILITY OF WESTERN DIGITAL CORP IRVINE CALIF GENENTECH INC SAID THAT EUROPEAN COMMUNITY REGULATORS HAVE RECOMMENDED THAT MEMBER COUNTRIES APPROVE ITS CYSTIC FIBROSIS DRUG PULMOZYME FOR MARKETING 9312200080 931220 ECONOMY BENTSEN EXPECTS INTEREST RATES TO HOLD STEADY STABILITY IS SEEN DESPITE STRONG GROWTH FORECAST FOR ECONOMY IN PERIOD BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TREASURY SECRETARY LLOYD BENTSEN SAID HE THINKS INTEREST RATES WILL HOLD STEADY THROUGH AT LEAST THE FIRST THREE MONTHS OF NEXT YEAR EVEN THOUGH HE EXPECTS THE ECONOMY TO GROW AT A 4 TO 5 ANNUAL RATE IN THE FOURTH QUARTER THE SECRETARY'S COMMENTS MADE YESTERDAY DURING AN APPEARANCE ON NBC NEWS'S MEET THE PRESS REFLECTED AN INCREASINGLY BUOYANT MOOD AMONG PRESIDENT CLINTON'S TOP ADVISERS ABOUT THE HEALTH OF THE ECONOMY THE ECONOMY GREW AT A 27 PACE IN THE THIRD QUARTER MANY ANALYSTS HAVE BOOSTED THEIR ESTIMATES FOR FOURTHQUARTER ECONOMIC GROWTH TO MORE THAN 4 PARTLY BECAUSE THEY EXPECT HEADY GROWTH IN SECTORS OF THE ECONOMY MOST AFFECTED BY LOW INTEREST RATES AS FOR NEXT YEAR MR BENTSEN SAID HE BELIEVES THAT WE WOULD SEE A GROWTH RATE THAT WOULD BE SOMEWHERE AROUND 3 AND PROBABLY AN INFLATION RATE THAT'S CLOSE TO THAT AND THOSE ARE GOOD NUMBERS I THINK WE'RE HEADED FOR LONGTERM SUSTAINABLE GROWTH MR BENTSEN ASSERTED HE ALSO SAID THAT I THINK YOU'VE SEEN MOST OF THE DOWNSIZING THE MAJOR DOWNSIZING ALREADY TAKE PLACE AMONG LARGE CORPORATIONS IN THE MEANTIME HE SAID THE ECONOMY IS CREATING SOME GOOD JOBS AND NOT JUST HAMBURGERFLIPPING JOBS THE US ADDED 208000 JOBS IN NOVEMBER AS THE UNEMPLOYMENT RATE PLUNGED TO 64 FROM 68 DESPITE THE PICKUP IN THE ECONOMY MR BENTSEN SAID HE DOESN'T SEE A REASON FOR THE FEDERAL RESERVE TO RAISE SHORTTERM INTEREST RATES WHICH ARE AT HISTORICALLY LOW LEVELS HE SAID THERE IS STILL A SUBSTANTIAL CUSHION IN THE NATION'S ECONOMIC CAPACITY AND LABOR COSTS REMAIN LOW ASKED WHEN SHORTTERM INTEREST RATES MIGHT CLIMB MR BENTSEN REPLIED WELL I DON'T SEE IT IN THE CURRENT QUARTER OR IN THE NEXT QUARTER HE DECLINED TO BE MORE SPECIFIC ALTHOUGH THE LATEST WHITE HOUSE ECONOMIC FORECAST PREDICTS A FED MOVE NEXT YEAR PRESIDENT CLINTON CITING SUBDUED INFLATION SAID LAST WEEK IT WOULD BE A MISTAKE FOR THE FED TO INCREASE INTEREST RATES IN THE WIDERANGING NBC INTERVIEW MR BENTSEN ALSO SAID HE PERSONALLY DOESN'T FORESEE USING AN INCREASE IN THE PAYROLL TAX TO FINANCE EXPANDED WORKERTRAINING PROGRAMS AN IDEA BEING CONSIDERED BY LABOR SECRETARY ROBERT REICH THE NATION'S SYSTEM OF GUN LAWS IS ARCHAIC AND NEEDS MAJOR REFORM AND I THINK THAT WHAT YOU'RE GOING TO HAVE TO SEE IS A SUBSTANTIAL INCREASE IN THE COST OF LICENSING GUN DEALERS AND FURTHER LIMITATION OF THEM AND TIGHTER CONTROLS OVER THEM ASKED ABOUT A PROPOSAL BY SENATE FINANCE CHAIRMAN DANIEL MOYNIHAN D NY TO PUT A 10000 TAX ON PARTICULARLY LETHAL AMMUNITION MR BENTSEN RESPONDED I THINK BETTER THAN THAT ON THAT TYPE OF A BULLET YOU JUST OUGHT TO OUTLAW IT A SENATE VOTE ON A CONSTITUTIONAL AMENDMENT TO REQUIRE A BALANCED FEDERAL BUDGET WILL BE VERY CLOSE THE CLINTON ADMINISTRATION OPPOSES SUCH AN AMENDMENT HE HOPES TO COMPLETE A FULL FOURYEAR TERM AS TREASURY SECRETARY SEPARATELY MR BENTSEN SAID DURING A MEETING WITH WALL STREET JOURNAL EDITORS LAST WEEK THAT HE PLANS A TRIP NEXT MONTH TO CHINA INDONESIA AND THAILAND TO MEET WITH ASIAN FINANCE MINISTERS HE SAID THE US NEEDS TO PLAY A GREATER ROLE IN THE WORLD'S FASTESTGROWING REGION 9312200079 931220 WHO'S NEWS CLUCKERS WOOD ROASTED CHICKEN INC CLUCKERS WOOD ROASTED CHICKEN INC MIAMI STEVE LEIPSNER 53YEAROLD RESTAURANT DEVELOPER WAS ELECTED A DIRECTOR OF THIS RESTAURANT CHAIN AS A DIRECTOR MR LEIPSNER SUCCEEDS JAY DARLING FORMER PRESIDENT AND CHIEF OPERATING OFFICER WHO RESIGNED HIS POSTS EARLIER THIS YEAR TO PURSUE OTHER INTERESTS THE COMPANY SAID 9312200078 931220 THESE MOMS FEEL HAUNTED BY GHOSTS OF CHRISTMAS PAST THE HOLIDAY STIRS MEMORIES OF FAMILY FEASTS GIFTS THAT MANY CAN'T MATCH BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL NAN TIEDEMAN WOULDN'T DREAM OF SKIPPING CHRISTMAS CARDS SHE ALWAYS MANAGES TO SQUEEZE THEM IN EVEN IF SHE IS NEARLY A MONTH LATE SIGNING THEM DURING FOOTBALL'S SUPER BOWL IN JANUARY THE 40YEAROLD OMAHA NEB HOSPITAL OFFICIAL ALSO DECORATES COOKIES THOUGH HER COOKING HABITS ARE A FAR CRY FROM HER MOTHER'S TWOPART BAKING SPREE ONE DAY FOR MAKING DOUGH THE OTHER FOR ICING AND SPRINKLING SHE TRIED THAT BUT HER TWO CHILDREN WOULDN'T STOP EATING THE DOUGH AS SHE TOILED IN HER FLOURCOATED KITCHEN WHY DID YOU EVER START THIS TRADITION MRS TIEDEMAN RECALLS ASKING HER MOTHER MANY OF TODAY'S WORKING MOMS DON'T HAVE THE KIND OF BONDING AND BAKING TIME THAT THEIR MOTHERS HAD WITH THEM STILL THEIR HAPPIEST MEMORIES OFTEN INVOLVE HOLIDAY ACTIVITIES WITH STAYATHOME MOMS SO MODERN MOMS BEND OVER BACKWARD TO RECREATE THEM CHRISTMAS IMAGERY FROM THE VIRGIN MARY TO BETTY CROCKER EVOKE VERY POWERFUL MOTHERCHILD FEELINGS SAYS PSYCHOTHERAPIST NAOMI LOWINKSY IN OAKLAND CALIF ARE WOMEN LOOKING AT THEIR MOTHERS THROUGH ROSEANDGREENCOLORED GLASSES NEW YORK PSYCHOTHERAPIST JANE MATTES SAYS PEOPLE SELECTIVELY FILTER HOLIDAY MOMENTS PROBABLY NOT EVERY MINUTE WAS EXACTLY WONDERFUL SHE SAYS MEMORIES ARE A REAL HARD ACT TO FOLLOW IN FACT MRS TIEDEMAN'S MOTHER 65YEAROLD MARY LUEDER REMEMBERS HER ANNUAL TWO DAYS OF BAKING AS A HARRIED TIME WITH EVERYONE SCREAMING AT EACH OTHER WHEREVER WOMEN TURN THIS TIME OF YEAR THEY FACE A BARRAGE OF CHRISTMAS HOWTOS MORE FOOD MORE DECORATING MORE EVERYTHING SHOUTS THE COVER OF THIS MONTH'S GOOD HOUSEKEEPING FAMILY CIRCLE TOUTS 550 MAGICAL IDEAS FOR CHRISTMAS AND BUSY HILLARY RODHAM CLINTON AS THE MEDIA HAVE REPORTED OVER AND OVER AGAIN IS GOING TO BAKE COOKIES WITH CHELSEA TRINE LYMAN WHO CALLS HER MOTHER A MODEL OF PERFECTION REENACTS HER MOM'S NORWEGIANSTYLE CHRISTMASES BY TREATING HER CHILDREN TO GIFTS EACH DAY OF DECEMBER AND COOKING A FORMAL CHRISTMAS EVE FEAST MY EXPECTATIONS STEM FROM HER SAYS THE 34YEAROLD MEMPHIS PHARMACEUTICALCOMPANY EXECUTIVE EVEN CONSUMER RESEARCH UNDERSCORES THE TREND AT PILLSBURY THE INQUIRY SWITCHBOARD LIGHTS UP LIKE A CHRISTMAS TREE THIS TIME OF YEAR WITH WOMEN REQUESTING RECIPES THEY REMEMBER FROM THEIR CHILDHOOD SUCH AS STAINEDGLASS COOKIES THE SUGAR COOKIES WITH CRUSHED CANDIES IN THE MIDDLE THEY WANT EVERYTHING JUST SO AT CHRISTMAS SAYS BARBARA BACON A MANAGER IN THE PILLSBURY TEST KITCHEN IN ARLINGTON VT ATTORNEY SUSAN DAILEY TOILS AWAY AT A FIVECOURSE MEAL FROM BON APPETIT MAGAZINE FOR HER SUNDAY OFFICE PARTY WHILE TRYING TO KEEP THREEYEAROLD COLLIN FROM PEEKING AT THE UNWRAPPED GIFTS STASHED IN THE DEN WITH THE GOAT CHEESE STIRRED SHE IS QUICKLY ELBOWDEEP IN SOAP BUBBLES SCRUBBING THE SOUP BOWLS LEFT OVER FROM THE PREVIOUS NIGHT'S TREETRIMMING BASH FOR 20 NEIGHBORS TO KEEP UP WITH HER CHORES THE 37YEAROLD MRS DAILEY CONSULTS A THICK MAROONCOLORED ORGANIZER OCT 31 FINISH CARDS NOV 30 WRAP EVERYTHING DEC 10 MAKE WREATH WOMEN DON'T WANT TO SHORTCHANGE THEIR FAMILIES NOW SHE SAYS HEAVEN KNOWS THE HOLIDAY SEASON IS TOUGH ON DADS TOO MRS DAILEY'S HUSBAND KEVIN SAYS OF HIS WIFE'S PREPARATIONS I'M NOT SURE SHE COULD POSSIBLY DO ALL THIS ALONE LAST YEAR WHILE HIS WIFE WORKED MR DAILEY COOKED A NORTHERN ITALIAN DINNER FOR THE COUPLE'S NEW YEAR'S EVE PARTY COMPLETE WITH HOMEMADE PASTA BUT IN A SEASON WHEN TRADITION IS KING IT IS THE MOMS WHO FEEL THE BIGGEST BURDEN WOMEN OFTEN TAKE ON ALL THE TRADITIONAL TRIMMINGS OF THE HOLIDAY AND ELIMINATE NOTHING SAYS KAY WILLIS OF MOTHERS MATTER A SUPPORT GROUP SOME FIND THEMSELVES WISHING IT AWAY NOT SURPRISINGLY THIS HAS PROMPTED SOMETHING OF A BACKLASH KATHY CALHOUN OF KALAMAZOO MICH USED TO TRY TO EMULATE HER MOTHER WHO BAKED DAYS IN ADVANCE AND WOULD GET UP THREE TIMES ON CHRISTMAS EVE NIGHT TO BASTE THE TURKEY I DON'T KNOW WHAT SHE WAS DOING WITH THAT BIRD SAYS THE 40YEAROLD CUSTOMERSERVICE REPRESENTATIVE FOR KELLOGG CO BUT TRYING TO COPY HER MOTHER LEFT MS CALHOUN SNORING ON THE COUCH CHRISTMAS DAY SHE SAYS SO SHE HAS PRUNED HER PREPARATIONS BY AMONG OTHER THINGS PURCHASING PLAIN UNBAKED SUGAR COOKIES ALREADY CUT IN FAMILIAR CHRISTMAS SHAPES AND READY TO DECORATE AND RATHER THAN SENDING CARDS TO COWORKERS SHE BOUGHT SPACE FOR HER GREETINGS IN A KELLOGG INHOUSE NEWSPAPER ON CHRISTMAS HER FAMILY DINES OUT WOMEN FEEL EVERYBODY'S GOING TO SUFFER IN SOME MASSIVE WAY IF THEY DON'T HAVE A HOMEMADE HOLIDAY MS CALHOUN SAYS LIFE'S TOO SHORT IN ST LOUIS 37YEAROLD KIM WATKINS FONDLY REMEMBERS HER MOTHER'S AUTHENTIC WILLIAMSBURG VA CHRISTMASES CLAM CHOWDER IN COPPER POTS CINNAMON STICKS BABY'S BREATH ON THE TREE AND THE MUSICBOX CAROLS WHICH MS WATKINS LATER PLAYED AT HER WEDDING THEY'RE MY BEST MEMORIES SHE SAYS AND HER DAUGHTER AND THREE STEPCHILDREN NEED THEM TOO BUT MS WATKINS WHO WORKS WITH HEADINJURY VICTIMS HAS STARTED STREAMLINING INSTEAD OF WRITING CARDS SHE TELEPHONES LOVED ONES WHILE EXERCISING ON HER STAIRMASTER AT CHRISTMAS DINNERS PAST HER AUNTS BATTLED FOR PRIME OVEN SPACE AND THREE MICROWAVES BLEW FUSES NOW EVEN WHEN HOSTING 75 RELATIVES FOR THE HOLIDAY FEAST IT IS POTLUCK MAYBE I'M LESS MOM' FOR DOING IT SHE REFLECTS INSTEAD OF STRINGING LIGHTS SHERRY DANCY 44 IN COLUMBUS OHIO AND HER 12YEAROLD SON ROBIN RIDE A HORSE AND BUGGY TO LOOK AT THE LIGHTS DECORATING OTHERS' PORCHES WITHOUT A MINUTE TO SPARE RUNNING HER OWN EMPLOYEEBENEFITS FIRM SHE SETS ASIDE A NIGHT FOR HER AND ROBIN TO CHOOSE GIFTS FROM CATALOGS IT ALL COMES OUT OF THE CATALOG DOWN TO THE PECAN PIE SHE SAYS DEBRA DONNELLY OF ALLENDALE NJ WHO OFTEN FORGOES SUCH ORDINARY TASKS AS VACUUMING ALWAYS FINDS THE TIME TO SET UP A SEVENFOOT CHRISTMAS TREE WITH ALL THE TRIMMINGS BUT ONCE THE HOLIDAYS END THE SINGLE MOTHER AND SELFHELP DIRECTOR POSTPONES THE HASSLE OF REWRAPPING ORNAMENTS AND PACKING THE LIGHTS AND LEAVES THE TREE STANDING UNTIL APRIL FOR THOSE FOUR LONG MONTHS SHE SAYS I HAVE TO CLOSE MY PICTUREWINDOW CURTAINS OF COURSE IN PRACTICALLY EVERY NEIGHBORHOOD THERE IS THE JUNE CLEAVER CLONE WHO DRIVES OTHERS NUTS IN EVANSTON ILL CLAD IN A RED SMOCK AND HANDSEWN GREEN GINGHAM BLOUSE SHE APPLIQUED WITH A TREE JOANNE CLEAVER YES THAT'S HER REAL NAME OPENS FILE CABINETS STUFFED WITH GIFTS SHE HAS WRAPPED LABELED AND PUT AWAY THROUGHOUT THE YEAR IN A NOVEMBER BAKING FRENZY THE TRAVEL WRITER AND MOTHER OF THREE WHIPPED UP 20 VARIETIES OF COOKIES AND STORED THEM IN HER BASEMENT FREEZER READY TO BE THAWED OUT FOR HER TWO CHRISTMAS BASHES CHRISTMAS SHE SAYS IS EVERYTHING I'M GOOD AT IN ONE BIG GLORIOUS MUSHROOMING EXPLOSION WOMEN WHO DON'T GO ALL OUT AT CHRISTMAS MRS CLEAVER SAYS AS SHE SHOWS OFF THE BEANBAG NATIVITY FIGURES SHE HANDSTITCHED ARE THE SAME ONES WHO STILL DON'T KNOW WHAT THEIR KID IS GOING TO BE ON HALLOWEEN MORNING 9312200077 931220 TOSHIBA CAN'T EXPORT CIRCUITS FOR MONTH TO CERTAIN COUNTRIES SPECIAL TO THE WALL STREET JOURNAL TOKYO TOSHIBA CORP WAS ORDERED NOT TO EXPORT INTEGRATED CIRCUITS TO FORMER AND CURRENT COMMUNIST COUNTRIES FOR A ONEMONTH PERIOD AS PUNISHMENT FOR A MID1980S INCIDENT A TOSHIBA SPOKESMAN SAID THE GOVERNMENTIMPOSED BAN WHICH TAKES EFFECT DEC 24 WILL COST IT BETWEEN 16 BILLION YEN 146 MILLION AND 17 BILLION YEN IN LOST SALES THE ACTION BY THE JAPANESE MINISTRY OF TRADE AND INDUSTRY IS PUNISHMENT FOR TOSHIBA'S EXPORT OF SEMICONDUCTOR TECHNOLOGY IN 1986 AND 1987 TO THEN EAST GERMANY IT APPLIES TO EXPORTS TO 27 FORMER AND CURRENT COMMUNIST COUNTRIES INCLUDING CHINA NORTH KOREA RUSSIA POLAND AND VIETNAM MITI ALSO ADMONISHED TRADING HOUSE MITSUI & CO FOR ITS ROLE IN THE ILLEGAL EXPORTRECEIVING PAYMENT FOR THE CONTRABAND USED IN MAKING INTEGRATED CIRCUITS BUT MITSUI DIDN'T FACE ANY TRADE RESTRICTIONS OR PENALTY TOSHIBA BREACHED THE FOREIGN EXCHANGE AND FOREIGN TRADE CONTROL LAW THE RESTRICTIONS UNDER THE COORDINATING COMMITTEE FOR MULTILATERAL EXPORT CONTROLS OR COCOM SINCE HAVE BEEN LIFTED THE TOSHIBA SPOKESMAN EMPHASIZED THAT THE DECISION TO EXPORT THE TECHNOLOGY TO EAST GERMANY WAS MADE BY A FORMER EXECUTIVE VICE PRESIDENT ON HIS OWN WITHOUT THE KNOWLEDGE OF OTHER OFFICIALS IN 1987 TOSHIBA INSTITUTED A STRICT EXPORTCONTROL COMPLIANCE PROGRAM HE SAID AND HASN'T VIOLATED RESTRICTIONS SINCE 9312200076 931220 RETAILING CATALOG SALES ARE GOING SO WELL SHOPPERS FIND THE PICKINGS SLIM BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL CATALOG COMPANIES LOVE TO SAY HOW EASY IT IS TO SHOP FOR CHRISTMAS BY PHONE ONE CALL DOES IT ALL THEY SAY NOT THIS YEAR MANY CATALOG USERS ARE FINDING THAT IT'S TAKING MORE THAN A PHONE CALL TO BRING HOME THAT SPECIAL GIFT MANY CATALOG COMPANIES CAUGHT OFF GUARD BY BRISK SALES HAVE RUN OUT OF MANY OF THE MOST POPULAR ITEMS IN THEIR HOLIDAY BOOKS SUDDENLY SHOPPERS ARE HEARING SORRY WE'RE OUT OF THAT OR IT'S BACKORDERED AND WON'T BE IN UNTIL AFTER CHRISTMAS CATALOG ORDERS AT MANY COMPANIES HAVE EXCEEDED EXPECTATIONS FOR EXAMPLE J CREW GROUP REPORTS THAT ORDERS FOR ITS LEISURE WEAR ARE SIGNIFICANTLY HIGHER THAN PLAN WE'RE REALLY DOING INCREDIBLY WELL THIS YEAR SAYS EMILY WOODS VICE CHAIRMAN OF THE NEW YORKBASED COMPANY ONE RESULT FRUSTRATED SHOPPERS LIKE JUDY DAY A BOSTON HOMEMAKER SHE DECIDED TO SHOP BY CATALOG THIS YEAR TO SAVE TIME BUT IT HASN'T WORKED OUT THAT WAY SHE CALLED IN AN ORDER OF THREE FLANNEL SHIRTS TO LANDS' END AND AFTER SOME TIME ON HOLD WAS TOLD THE DODGEVILLE WIS CATALOG CONCERN DIDN'T HAVE THE SHIRTS SHE FINALLY GOT THEM BUT FROM LL BEAN OF FREEPORT MAINE LYDIA GONZALEZ A CHICAGO ADVERTISING REPRESENTATIVE STRUCK OUT ON THE FIVE ITEMS BLOUSES AND JEWELRY SHE TRIED TO ORDER FROM J CREW THEY SENT ME THREE CATALOGS THAT ALL HAD THE SAME MERCHANDISE IN THEM SHE COMPLAINS YOU WOULD THINK THEY WOULD HAVE HAD SOME OF WHAT I WANTED SHE FINALLY WENT TO A MALL AND PHONEORDER LINES ARE OFTEN AS CROWDED AS THE MALLS ONE CHICAGO WOMAN SPENT 10 MINUTES ON HOLD EACH OF THE THREE TIMES SHE TRIED TO CALL AN ORDER INTO GUMP'S THE SAN FRANCISCO GIFT SELLER SHE HUNG UP EACH TIME IN DESPERATION SHE GOT UP VERY EARLY ONE SATURDAY TO PHONE DURING OFFPEAK HOURS AND FINALLY PLACED HER ORDER THE DIRECT MARKETING ASSOCIATION AN INDUSTRY GROUP ESTIMATES SHOPPERS WILL SPEND 55 BILLION ON CATALOG PURCHASES THIS YEAR UP 64 FROM 515 BILLION IN 1992 SEVERAL INDUSTRY INSIDERS INCLUDING OFFICIALS AT HANOVER DIRECT EXPECT SALES GAINS THIS HOLIDAY SEASON TO BE WELL ABOVE 10 ONE REASON FOR THAT IS CATALOG COMPANIES ARE GETTING BETTER AT TARGETING THE MOST PROBABLE CUSTOMERS THEY ARE MAILING MORE CATALOGS TO THEIR BEST CUSTOMERS WHICH THEY HAVE FOUND YIELDS MORE SALES THAN SENDING THEM TO UNTESTED PROSPECTIVE CUSTOMERS CATALOG COMPANIES HAVE ALSO PULLED IN EXTRA BUSINESS WITH THEIR GUARANTEES THAT ORDERS WILL ARRIVE BY CHRISTMAS EVEN IF THE CALLS COME IN JUST DAYS BEFORE DEC 25 UNTIL JUST A FEW YEARS AGO CATALOG SHOPPERS HAD TO PLACE ORDERS BY EARLY DECEMBER TO ENSURE PRECHRISTMAS DELIVERY SOME CATALOG COMPANIES NOW CALL THE TWO WEEKS BEFORE CHRISTMAS THE FIFTH QUARTER SAYS CHESTER DALZELL A SPOKESMAN FOR THE INDUSTRY ASSOCIATION THE SALES BOOM HAS HELPED DEPLETE CATALOG INVENTORIES THAT WERE THIN TO BEGIN WITH MANY COMPANIES WERE CAUTIOUS WHEN PLACING INITIAL ORDERS FOR GOODS IN MARCH WHEN THE ECONOMY AND CONSUMER SENTIMENT IMPROVED FASTER THAN ANTICIPATED THIS FALL IT WAS TOO LATE FOR MANY COMPANIES TO REORDER SOME CATALOG CONCERNS ALSO MISCALCULATED HOW MUCH BUSINESS THEY WOULD REAP FROM THE CLOSING EARLIER THIS YEAR OF SEARS ROEBUCK & CO'S BIG BOOK AND NEARLY ALL OF THE GIANT RETAILER'S CATALOG OPERATION THAT'S 33 BILLION OF SALES WHICH AMOUNTS TO 6 OF ALL CATALOG SALES NOTES RICHARD GRUNSTEN PRESIDENT OF CHICAGO CATALOG CONSULTING CONCERN GSP MARKETING SERVICES THOSE SALES HAD TO GO SOMEWHERE HE SAYS JC PENNEY CO FOR EXAMPLE WAS EXPECTING GAINS IN THE TEENS AFTER AGGRESSIVELY PURSUING THE SEARS BUSINESS MOST NOTABLY BY ACCEPTING THE DISCOVER CREDIT CARD BUT IN OCTOBER AND NOVEMBER THE STORES SAW GAINS OF 21 AND 22 RESPECTIVELY AND DECEMBER IS IN THAT NEIGHBORHOOD A PENNEY SPOKESMAN SAYS THE PLANO TEXAS RETAILER'S SALES BEGAN MUSHROOMING IN JULY GIVING IT TIME TO RAISE INVENTORIES FOR THE HOLIDAY PERIOD WE DID HAVE AN INVENTORY PROBLEM SAYS SPOKESMAN DUNCAN MUIR WE HAD TO DO SOME SCRAMBLING TO GET THAT TAKEN CARE OF AT ORVIS CO A MANCHESTER VT OUTDOORWEAR CONCERN YOU MIGHT SAY THINGS ARE GOING TOO WELL SAYS LEIGH PERKINS ORVIS'S CHIEF EXECUTIVE OFFICER ITS SALES THIS HOLIDAY SEASON ARE UP 25 BUT MANY POPULAR CATALOG ITEMS ARE OUT OF STOCK AMONG ITEMS ON BACK ORDER ARE FLYFISHING VESTS AND CAT HAMMOCKS WHICH ATTACH TO WINDOWSILLS FOR SUNWORSHIPPING HOUSEHOLD FELINES ALSO RUNNING LOW ARE STOCKS OF HEAVY DENIM PANTS AND CANVASSHELLED BARN COATS AT HAMMACHER SCHLEMMER A CHICAGO CATALOGER AND RETAILER SHOPPERS ARE BUYING LESS PRACTICAL AND MORE EXPENSIVE GIFTS THAN LAST YEAR THAT HELPS EXPLAIN WHY A 400 AUTOGRAPHED COPY OF BASKETBALL STAR MICHAEL JORDAN'S BOOK RARE AIR IS SOLD OUT THE RETAILER SAYS AND THERE'S A RUN ON 100 COTTON BATHROBES AND A 270 GIZMO THAT GIVES VIDEO GAMES A THREEDIMENSIONAL LOOK CATALOG CONCERNS INSIST THEY'LL HAVE PLENTY OF MERCHANDISE FOR THEIR TRADITIONAL JANUARY SALES MANY OF THOSE ITEMS HOWEVER WILL BE THE DOGS THAT CUSTOMERS AVOIDED ORVIS FOR EXAMPLE PURCHASED A RAFT OF CHEESE SPOONS THAT HAVEN'T SOLD THERE'S GONNA BE SOME GREAT PRICES ON CHEESE SCOOPS THIS YEAR MR PERKINS SAYS 9312200075 931220 REVIEW & OUTLOOK EDITORIAL THE IRISH NATIONS ONE OF THE INTERESTING SENTENCES IN THE ANGLOIRISH DECLARATION ANNOUNCED LAST WEEK AT DOWNING STREET IS FOUND IN PARAGRAPH 4 THE BRITISH GOVERNMENT HAS NO SELFISH STRATEGIC OR ECONOMIC INTEREST IN NORTHERN IRELAND THIS SENTENCE DECLARES THAT NORTHERN IRELAND IS NO LONGER TO BE CONSIDERED LIKE WOLVERHAMPTON OR LEEDS AS AN AREA THAT IS INTRINSICALLY BRITISH IT THEREBY SHIFTS DEBATE FROM THE PAST TO THE FUTURE NO LONGER IS IT ENOUGH FOR THE TWO SIDES TO ARGUE THEIR GRIEVANCES ABOUT HOW BRITAIN CAME TO ACQUIRE NORTHERN IRELAND AND WHETHER CURRENT RULE IS THEREFORE LEGITIMATE THE HEART OF THE MATTER WILL NOW BE A REFERENDUM HELD AT SOME FUTURE DATE IN WHICH THE PEOPLE OF NORTHERN IRELAND WILL AGAIN SIGNAL WHICH NATION THE REPUBLIC OF IRELAND OR THE UK THEY WISH TO JOIN NEITHER EXTREME IN THE CONFLICT IS PARTICULARLY PLEASED BY THE DECLARATION BUT BOTH SIDES WILL HAVE TROUBLE REJECTING THE PEACE PROCESS THE UNIONISTS RESENT BEING TOLD THAT THEY ARE LESS INTRINSICALLY BRITISH THAN THE CITIZENS OF WOLVERHAMPTON AND LEEDS BUT THE RADICAL UNIONISTS ARE MARGINALIZING THEMSELVES IN BRITISH PUBLIC OPINION BRITAIN NOW FUNNELS 13 BILLION A YEAR TO NORTHERN IRELAND IN ECONOMIC ASSISTANCE AND MILLIONS ADDITIONALLY ON SECURITY FORCES THERE THESE ARE GREAT SACRIFICES TO MAKE FOR A REGION IN WHICH YOU HAVE NO NATIONAL INTEREST THIS IS NOT TO SAY THAT THE MAINLAND BRITISH WANT TO SURRENDER TO THE IRA BUT IF THERE IS A GENUINE CHANCE FOR PEACE AND THE UNIONISTS SCUTTLE IT THEN MAINLAND SUPPORT FOR THE UNIONISTS MAY DIMINISH QUICKLY AS TO THE IRA AND ITS POLITICAL WING SINN FEIN THE DECLARATION GIVES THEM THE RIGHT TO SIT AT THE TABLE SO LONG AS THEY RENOUNCE VIOLENCE OVER THE NEXT THREE MONTHS EVEN THEIR PASSIVE SUPPORTERS ARE EXHAUSTED BY THE VIOLENCE PRESUMABLY THE LOCAL PEOPLE WHO SHELTER THE IRA WOULD REBEL IF THE ORGANIZATION WAS SEEN AS MERELY A BUNCH OF NIHILISTIC THUGS UNINTERESTED IN PEACE ONE ALSO ASSUMES THAT SOME OF THE IRA'S FINANCIAL BACKERS IN THE US BELIEVE IN DEMOCRACY AND WOULD BE LESS WILLING TO WRITE THE CHECKS IF THE IRA REJECTED A DEMOCRATIC PROCESS SO THIS REALLY DOES LOOK LIKE A PROMISING MOMENT THE REPUBLIC OF IRELAND AND THE UK HAVE EACH MADE IMPORTANT CONCESSIONS THAT LOOSEN HISTORICAL CLAIMS AND INSTEAD UNDERLINE THE IMPORTANCE OF DEMOCRATIC CONSENT HERE AS ELSEWHERE IN THE POSTCOLD WAR WORLD WE FIND OURSELVES IN THE TRICKY DEBATE OVER WHAT CONSTITUTES A NATION IN PLACES SUCH AS UKRAINE AND APPARENTLY NOW IN NORTHERN IRELAND DEMOCRATIC CONSENT IS SUPPOSED TO WASH AWAY THE COMPLEX OF HISTORICAL AND ETHNIC CLAIMS YET WE CAN'T CLEARLY SAY THAT LOCAL CONSENT CONQUERS ALL FOR WHO WOULD WANT TO THEN AGREE THAT NATIONAL BORDERS ARE ONLY AS LEGITIMATE AS THE LAST ELECTION RETURNS SUFFICE IT TO SAY THAT AT THIS MOMENT IN WORLD HISTORY THE DEFINITION OF NATIONHOOD IS IN A HIGHER THAN NORMAL STATE OF FLUX AND THAT THEREFORE OLD DISPUTES SUCH AS THAT OF NORTHERN IRELAND BEGIN TO APPEAR RESOLVABLE AS NEW NOTIONS OF NATIONHOOD AND SOVEREIGNTY ENTER THE ARENA THE THOUGHT OF IRA MURDERERS BEING ABLE TO LIVE PUBLICLY IS A BITTER PILL THEY WILL NOT EVEN BE FORCED TO SURRENDER THEIR WEAPONS THOUGH THANK HEAVENS THERE WILL BE NO AMNESTY FOR THOSE MURDERERS WHO HAVE ALREADY BEEN THROWN INTO PRISON STILL REACHING PEACE INVOLVES HOLDING ONE'S NOSE JOHN MAJOR IRISH PRIME MINISTER ALBERT REYNOLDS AND OTHERS ARE TO BE CONGRATULATED FOR REFUSING TO ACCEPT THE INTRACTABILITY OF THIS CONFLICT PERHAPS THERE REALLY IS SOMETHING IN THE ZEITGEIST THAT ENCOURAGES MESSY RESOLUTIONS TO AGEOLD PROBLEMS NOW 9312200074 931220 SMALL STOCK FOCUS GENETIC FIRM WINS FRIENDS ON THE STREET BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE HUBBUB OVER THE HUMAN GENOME PROJECT IS SPILLING OUT OF THE LAB AND ONTO WALL STREET HUMAN GENOME SCIENCES A RECENT NEW LISTING ON NASDAQ HAS BECOME A DARLING OF INVESTORS CAPTIVATED BY THE STARTLING ADVANCES EMERGING ALMOST DAILY FROM THE WORLDWIDE EFFORT TO MAP THE GENETIC MAKEUP OF HUMANS THE COMPANY WHICH IS TRADING NEARLY 45 ABOVE ITS DEC 2 LISTING PRICE IS RACING TO DO LARGESCALE GENE SEQUENCING TO IDENTIFY GENES AND TO COMMERCIALIZE PRODUCTS BASED ON ITS DISCOVERIES ANY NEW PRODUCTS FROM THE COMPANY WILL BE SOME DISTANCE ON THE HORIZON BUT THAT HASN'T STOPPED INVESTORS FROM PILING ON BOARD ANALYSTS SAY THE ALLURE MAY LIE MORE WITH INVESTOR FASCINATION WITH THE FUTURE APPLICATIONS OF HUMAN GENETIC RESEARCH THAN WITH THE COMPANY ITSELF IT ISN'T IMPORTANT THAT HUMAN GENOME SCIENCES' STOCK WENT UP AFTER THE OFFERING SAYS JEFFREY R SWARZ A BIOTECHNOLOGY ANALYST AT CS FIRST BOSTON WHAT IT REFLECTS IS THE BEGINNING OF INVESTOR ENTHUSIASM AND APPRECIATION FOR THE POWER OF GENE THERAPY OF COURSE OTHER COMPANIES BOTH LARGE AND SMALL ARE ATTEMPTING TO CAPITALIZE ON GENETIC RESEARCH BUT ANALYSTS SAY HUMAN GENOME SCIENCES IS THE FIRST PUBLIC COMPANY TO EMERGE AS A PURE STOCK MARKET PLAY ON THE OVERALL MAPPING OF THE HUMAN GENOME UNLIKE OTHER COMPANIES THAT SEEK TO DEVELOP GENEBASED THERAPIES FOR TARGETED DISEASES THE CONCERN HAS A WIDERANGING STRATEGY THAT AIMS TO IDENTIFY AND PATENT VAST NUMBERS OF GENES AND PARTS OF GENES THAT EVENTUALLY MAY PLAY A ROLE IN FUTURE THERAPIES HUMAN GENOME SCIENCES HAS CAPTURED THE IMAGINATION OF WALL STREET AS THE HARBINGER OF THE MOST PRODUCTIVE PHASE OF BIOTECHNOLOGY SAYS JEFFREY W CASDIN A BIOTECH ANALYST AT OPPENHEIMER & CO WORKING WITH THE INSTITUTE FOR GENOMIC RESEARCH A NOTFORPROFIT COMPANY FOUNDED BY FORMER NATIONAL INSTITUTES OF HEALTH SCIENTIST J CRAIG VENTER HUMAN GENOME SCIENCES SAID IN ITS PROSPECTUS THAT IT HAD IDENTIFIED 17500 GENES AT THE TIME OF ITS OFFERING ANALYSTS SAY THE COMPANY BENEFITS FROM STRONG BACKING FROM SMITHKLINE BEECHAM WHICH HAS AGREED TO PAY 125 MILLION FOR AN 86 STAKE FOR ITS INVESTMENT SMITHKLINE HAS FIRST RIGHT TO DEVELOP AND MARKET PRODUCTS BASED ON GENES DISCOVERED BY HUMAN GENOME SCIENCES SINCE HUMAN GENOME SCIENCES' AVOWED AIM IS TO DISCOVER GENES AND PATENT THEM AND SINCE IT HAS A DEEPPOCKET PARTNER TO PAY FOR DEVELOPMENT IT'S HARD TO CONCEIVE HOW THE COMPANY CAN FAIL TO MEET EXPECTATIONS FOR SOME TIME SAYS MR CASDIN HOWEVER ANALYSTS SAY THE STOCK MAY BE HEADED FOR SOME TOUGH TIMES ESPECIALLY AFTER ITS SHARP CLIMB SINCE THE OFFERING AND IF THE STOCK MARKET AS A WHOLE GOES INTO A SUSTAINED DOWNTURN INVESTORS ARE VERY CLEARLY SEEING THE COMPANY'S POTENTIAL BUT IT WON'T BE REALIZED IN THE NEXT SIX MONTHS SAYS SKIP KLEIN AN ANALYST AT T ROWE PRICE ASSOCIATES IF WE GO INTO A TOUGH PERIOD IN THE STOCK MARKET IT'S REASONABLE TO BELIEVE THE STOCK WILL CORRECT OTHER ANALYSTS ARE LESS SANGUINE NOTING THAT THE COMPANY'S SUCCESS LIES FAR DOWN THE ROAD ONE ANALYST SAID IT'S A TRUSTME STORY IN A PULLBACK IN THE STOCK MARKET IT'S THE TRUSTME STORIES THAT GET CLOBBERED HIGHLIGHTING THE VOLATILE NATURE OF BIOTECH STOCKS HUMAN GENOME SCIENCES HAD A ROUGH DAY FRIDAY SINKING 2 TO 17 1/4 BUT IT STILL IS FAR ABOVE ITS INITIAL OFFERING PRICE OF 12 COMPANY OFFICIALS WERE UNAVAILABLE TO COMMENT ABOUT THE COMPANY BECAUSE THEY ARE BOUND BY A 25DAY SILENCE FOLLOWING THE STOCK OFFERING BUT IN ITS PROSPECTUS THE COMPANY READILY CONCEDES THAT ITS STRATEGY FOR HIGHSPEED SEQUENCING TO IDENTIFY AND PATENT GENES IS UNPROVEN IT ALSO CONCEDES THAT THE COMPANY'S SUCCESS DEPENDS ON ITS ABILITY TO DETERMINE THE VALUE OF THE GENES IT DISCOVERS AND TO COME UP WITH MEDICAL USES THAT CAN BE COMMERCIALIZED AND MANY HURDLES LIE AHEAD PATENTING ITS DISCOVERIES MAY PROVE DIFFICULT FOR THE COMPANY IT'S NOW ATTEMPTING TO ACQUIRE PATENTS FOR GENES BASED ON PARTIAL GENE SEQUENCES WITHOUT FULL PROOF OF THE FUTURE BIOLOGICAL APPLICATIONS BUT SAYS OPPENHEIMER'S MR CASDIN THE INTELLECTUAL PROPERTY POSITION IS DUBIOUS AT THIS STAGE YOU CAN'T PATENT A GENE UNLESS YOU CAN SHOW THE UTILITY OF WHAT YOU HAVE FOUND IN ITS PROSPECTUS HUMAN GENOME SCIENCES ALSO NOTES THAT FULLLENGTH GENES DISCOVERED BY THE COMPANY MAY NOT BE COMPLETELY PROTECTED BY PATENTS THERE CAN BE NO ASSURANCE THAT ANY PATENTS IF ISSUED WILL PROVIDE PROTECTION AGAINST ANY COMPETITORS THE PROSPECTUS STATES MR CASDIN ALSO HAS HIS DOUBTS ABOUT THE COMPANY'S SHOTGUN STRATEGY THAT TRIES TO SWEEP INTO ITS DOMAIN AS MANY GENES AS POSSIBLE AND THEN LATER DISCOVERING WHAT IF ANY VALUE THESE GENES POSSESS I'D DESCRIBE IT AS A LANDGRAB STRATEGY IN WHICH THEY'RE TRYING TO GRAB AS MANY GENES AND PARTS OF GENES BEFORE ANYBODY ELSE DOES IN ORDER TO GET A PIECE OF THE ACTION FROM WHAT FOLLOWS HE SAYS ALSO SOMEWHAT TROUBLING SAYS MR CASDIN IS THAT THE GENE SEQUENCING MACHINES USED BY HUMAN GENOME SCIENCES ARE COMMERCIALLY AVAILABLE THE COMPANY ITSELF RECOGNIZES THE POTENTIAL COMPETITION BUT ARGUES THAT ITS LARGE SCALE AUTOMATED PROCESSES AND LEAD TIME OFFER AN ADVANTAGE AND IN FACT SOME MAJOR DRUG MAKERS ALREADY ARE ATTEMPTING TO PATENT GENE FRAGMENTS THEY ARE IDENTIFYING AS PART OF THEIR OWN DISCOVERY PROGRAMS NO ADVANCE IN TECHNOLOGY IS BEING EMPLOYED IN HUMAN GENOME SCIENCES' STRATEGY SAYS MR CASDIN THERE'S THE POSSIBILITY A MORE ELEGANT TECHNOLOGY COULD SURFACE AND LEAPFROG THEIR EFFORTS WHILE THE SWIFT PROGRESS IN THE INDUSTRY POSES A THREAT IT ALSO COULD END UP BENEFITING HUMAN GENOME SCIENCES SAYS MR SWARZ OF CS FIRST BOSTON IF I WERE TO SAY THE COMPANY WON'T HAVE ANYTHING AT THE CLINICAL STAGES FOR THREE YEARS IT COULD BE COMPLETELY FALLACIOUS HE SAYS THE PACE OF DISCOVERY IS SO FAST THAT IF IT CONTINUES THEY COULD BE IN THE CLINIC FASTER THAN PEOPLE EXPECT SMALL STOCKS CLIMBED AMID RISING BOND PRICES AND AN UNEXPECTEDLY STRONG REPORT ON NOVEMBER HOUSING STARTS THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES ROSE 167 TO 25225 THE NASDAQ COMPOSITE INDEX CLIMBED 370 TO 75923 ADVANCING NASDAQ ISSUES OUTPACED DECLINERS 1505 TO 1338 NASDAQ NATIONAL MARKET VOLUME TOTALED 250682100 SHARES UP FROM 234745600 ON THURSDAY AMONG BIG WINNERS ROYCE LABORATORIES CLIMBED 1/2 OR 22 TO 2 13/16 AFTER THE COMPANY SAID IT HAS RECEIVED OFFICIAL NOTIFICATION FROM THE FOOD AND DRUG ADMINISTRATION THAT IT HAS BEEN RELEASED FROM THE FDA'S VALIDITYASSESSMENT POLICY AS A RESULT THE FDA WILL NOW RESUME SUBSTANTIVE SCIENTIFIC REVIEW OF ABBREVIATED NEW DRUG APPLICATIONS ANDAS SUBMITTED BY THE COMPANY FOR THE APPROVAL OF NEW GENERIC DRUGS AMONG THE DAY'S WORST PERFORMERS LONE STAR CASINO SANK 1/2 OR 83 TO 5 1/2 THE PLUNGE FOLLOWED THURSDAY'S 20 GAIN THE COMPANY SAID THE MISSISSIPPI GAMING COMMISSION APPROVED THE SITE FOR ITS PROPOSED 250ACRE CASINO COMPLEX AND RESORT ON THE BAY OF ST LOUIS IN HARRISON COUNTY MISS LONE STAR SAID IT IS ON SCHEDULE FOR A LATE1994 OPENING OF THE GAMBLING FACILITY WHICH WILL INCLUDE A CASINO A GOLF COURSE AND A HOTEL MERRYGOROUND ENTERPRISES PLUNGED 3/4 OR 26 TO 2 1/8 AFTER THE WALL STREET JOURNAL REPORTED THE COMPANY SAID A BANKRUPTCYLAW FILING COULDN'T BE RULED OUT THE COMPANY HAS MISSED PAYMENTS TO MANY OF ITS SUPPLIERS AND HAS BEEN HARD HIT BY SEVERAL MONTHS OF POOR SALES ITS STOCK DOVE 54 ON THURSDAY PETROCORP SURGED 1 5/8 OR 21 TO 9 1/2 AFTER OPPENHEIMER INITIATED COVERAGE OF THE STOCK WITH A BUY RATING OPPENHEIMER SAID PETROCORP WHICH BEGAN TRADING ON NASDAQ IN LATE OCTOBER HAS UNDERLYING VALUE DESPITE WEAK CRUDE OIL PRICES QUALITY PRODUCTS GAINED 1 1/8 OR 93 TO 13 1/4 THE COMPANY SAID ITS BOARD AUTHORIZED THE REPURCHASE OF AS MANY AS 700000 SHARES QUALITY PRODUCTS HAS ABOUT 63 MILLION SHARES OUTSTANDING BREED TECHNOLOGIES FELL 1 3/8 OR 8 TO 15 3/4 THE COMPANY REGISTERED TO OFFER 3750000 COMMON SHARES ABOUT 29 MILLION OF WHICH ARE BEING OFFERED BY SHAREHOLDERS WITH THE REMAINING SHARES TO BE SOLD BY THE COMPANY THE SELLING SHAREHOLDERS INCLUDE KOBE STEEL WHICH PLANS TO SELL ITS 5 STAKE OF 15 MILLION SHARES MITSUBISHI CORP WHICH WILL SELL ITS 14 STAKE OF 421000 SHARES AND NISSHO IWAI WHICH IS OFFERING ITS 19 STAKE OF 562000 SHARES THQ PLUNGED 1 OR 50 TO 1 AFTER THE COMPANY SAID IT EXPECTS A FOURTHQUARTER LOSS THE COMPANY SAID IT PLANS TO INCREASE ITS RESERVES FOR MARKDOWNS AND INVENTORY TO COMPENSATE FOR WEAKER SALES AND THAT IT EXPECTS CONTINUED EROSION OF GROSS PROFIT MARGINS RESULTING FROM MORE EXPENSIVE HIGHMEMORY CARTRIDGES AND THE INABILITY TO RECOUP THESE COSTS FIRST PACIFIC NETWORKS JUMPED 3 3/8 OR 39 TO 12 1/8 ON NEWS THAT THE COMPANY AND GENERAL INSTRUMENTS WERE SELECTED TO SUPPLY EQUIPMENT FOR A MOSCOW CABLETELEVISION NETWORK BIOMATRIX REBOUNDED FROM THURSDAY'S 13 DECLINE GAINING 1 1/4 OR 19 TO 8 THE COMPANY'S COFOUNDER AND FORMER GENERAL MANAGER ANDRE BALAZS DISCOUNTED RUMORS THAT HIS REAL ESTATE INTERESTS WILL FORCE HIM TO ALTER HIS BIOMATRIX HOLDINGS 9312200073 931220 FOREIGN TRADERS SEE RED OVER RULES IN BOOMING CZECH SECURITIES MARKET BY NEIL KING JR SPECIAL TO THE WALL STREET JOURNAL PRAGUE TAKE A HANDFUL OF EASTERN EUROPE'S LARGEST AND MOST LUCRATIVE BANKS WATCH THEIR SHARE PRICES MORE THAN DOUBLE IN A FEW MONTHS THEN PREVENT FOREIGN INVESTORS FROM TRADING IN THEM WHAT DO YOU GET INVESTOR FRUSTRATION CORDON BLEU IT'S A MEAL BEING SERVED UP DAILY ON PRAGUE'S BOOMING SECURITIES MARKET AND ONE THAT HAS TRADERS HERE TURNING RED IN THE FACE WE HAVE CLIENTS WHO'VE BEEN CHAFING FOR MONTHS TO INVEST IN CZECH BANKS FUMES ANDREW REICHER A DIRECTOR AT THE PRAGUE OFFICE OF CS HOLDING'S CS FIRST BOSTON INC THE NATIONAL BANK CALLS ITS POLICY FAIR PROTECTION OF THE BANKING INDUSTRY I CALL IT BLATANT DISCRIMINATION MR REICHER HAS MANY PEERS IN THIS MOUNTING FEUD ALL OF WHOM CONTEND THAT THE GOVERNMENT'S RULES ON THE TRADING OF BANK EQUITY FLY IN THE FACE OF ITS FREEMARKET PHILOSOPHY REGULATORS AT THE CZECH NATIONAL BANK HOWEVER DON'T AGREE ALLOWING FOREIGNERS EASY ACCESS TO CZECH BANK SHARES THEY ASSERT COULD UNDERMINE THE INDEPENDENCE AND STABILITY OF THE COUNTRY'S BIGGEST BANKS WE DEFINITELY WELCOME THE INTEREST OF FOREIGNERS IN OUR BANKS SAYS VLASTIMIL TESAR CHIEF OF BANKING SUPERVISION AT THE NATIONAL BANK BUT A CLEAR DISTINCTION MUST BE DRAWN BETWEEN PORTFOLIO INVESTORS AND THOSE PEOPLE WANTING TO MANIPULATE AND POSSIBLY GAIN CONTROL OF OUR BANKING INSTITUTIONS FOREIGNERS IN FACT AREN'T PROHIBITED FROM OWNING SHARES IN CZECH BANKS ZIVNOSTENSKA BANKA FOR INSTANCE IS MORE THAN HALF OWNED BY THE GERMAN BHFBANK AND THE INTERNATIONAL FINANCE CORP YET UNDER THE STATE'S BANKING ACT FOREIGNERS CAN'T BUY A SINGLE BANK SHARE WITHOUT THE CENTRAL BANK'S PERMISSION AND SINCE SHARES BEGAN TRADING IN JULY THE CENTRAL BANK HAS APPROVED NONE OF THE DOZENS OF REQUESTS MADE ON BEHALF OF FOREIGNERS INTERESTED IN THE CZECH BANK MARKET THAT INTEREST MANY ASSERT IS ENORMOUS HERE'S WHY OF THE THREE ISSUES SO FAR OFFICIALLY LISTED ON THE PRAGUE STOCK EXCHANGE ALL ARE BANKS IN RECENT MONTHS FOR A MARKET WITH NEARLY 1000 REGISTERED STOCKS BANKS' SHARES HAVE OVERWHELMINGLY FORMED THE BULK OF ALL SHARES TRADED THEN THERE ARE THE BANKS THEMSELVES BY FAR CESKA SPORITELNA A HUGE SAVINGS BANK WITH A NETWORK OF SOME 2200 BRANCHES IS OF THE GREATEST INTEREST THE BANK OVERSEES THE NEST EGGS OF NEARLY EVERY CZECH ADULT AND HAS DEPOSITS TOTALING NEARLY 9 BILLION SINCE AUGUST ITS SHARE PRICE HAS ROCKETED FROM ABOUT 68 A SHARE TO A HIGH LAST WEEK OF ABOUT 230 WHILE LESS PROMISING THAN SPORITELNA SEVERAL OTHER BIG BANKS KOMERCNI BANKA INVESTICNI BANKA AND ZIVNOSTENSKA BANKA HAVE SEEN THEIR SHARE PRICES RISE ALONG SIMILAR LINES IN ONE TRADING DAY EARLY THIS MONTH NEARLY 28 MILLION WORTH OF KOMERCNI SHARES OR ABOUT A FIFTH OF THE BANK'S OUTSTANDING EQUITY CHANGED HANDS WHAT IS IRKSOME IS THAT THIS OPPORTUNITY FOR GAIN HAS BEEN DENIED TO FOREIGNERS AND FOR NO GOOD REASON SAYS MR REICHER STILL WHILE NO ONE OPENLY ADMITS TO THE PRACTICE MANY OBSERVERS CONTEND THAT FOREIGNERS ARE ALREADY TRADING IN BANK SHARES THROUGH CZECH PARTNERS AND RECENT VOLUMES WOULD SUGGEST THEY'RE RIGHT IN THE PAST MONTH FOR INSTANCE NEARLY 43 MILLION IN BANK SHARES WERE SOLD THROUGH DIRECT TRADES DURING THE SAME PERIOD 2 MILLION IN CESKA SPORITELNA SHARES ALONE TRADED HANDS OVER THE STOCK EXCHANGE OBSERVERS SAY MUCH OF THE ARGUMENT CENTERS ON AN APPARENT CONFLICT BETWEEN THE BANKING ACT AND THE SPIRIT OF THE GOVERNMENT'S MASS PRIVATIZATION CAMPAIGN WHICH HAS TURNED OVER TO PRIVATE CITIZENS LARGE CHUNKS OF THE NATION'S BIGGEST BANKS THE PORTION OF THE BANKING ACT THAT BARS FOREIGNERS FROM BUYING BANK SHARES WITHOUT APPROVAL MR REICHER AND OTHERS SAY WAS MEANT TO APPLY ONLY TO SIGNIFICANT OWNERSHIP STAKES AND TO SUCH THINGS AS BANK MERGERS IT WAS NOT I REPEAT NOT WRITTEN IN ANTICIPATION OF AN ACTIVE SECONDARY MARKET FOR TRADING OF EXISTING BANK EQUITY SAYS ALEXANDER ANGELL DIRECTOR OF TRADING AT THE PRAGUEBASED WOOD & CO SECURITIES HOPING TO EASE TENSIONS AND TO OPEN THE MARKET TO LIMITED TRADING THE NATIONAL BANK PLANS TO ANNOUNCE A STREAMLINED PROCESS FOR APPROVING BANKSHARE PURCHASES BY FOREIGNERS THE PLANS CALL FOR PROSPECTIVE BUYERS TO DECLARE WHICH SHARES THEY WOULD LIKE TO BUY AS WELL AS WHAT STAKES THEY ALREADY OWN IN THE CZECH BANKING INDUSTRY STILL MR TESAR SAYS EMPHASIS WILL BE PLACED ON CLOSE SCRUTINY OF APPLICANTS AND NOT ON THE SPEED OF GRANTING APPROVAL AFTER ALL HE POINTS OUT ONE CAN'T EASILY DETERMINE THE VARIOUS INTERESTS THAT MIGHT BE HIDDEN BEHIND THE CURTAIN OF EVEN THE MOST HONORABLE OF PORTFOLIO INVESTORS MR TESAR CITES THE POSSIBILITY THAT FOREIGNERS MAY WANT TO BUY BANK SHARES TO GAIN CONTROL OVER CERTAIN BANKS OR TO OBTAIN ACCESS TO CONFIDENTIAL INFORMATION ON CZECH INDUSTRY BUT CONCERN AT THE NATIONAL BANK DOES NOT STOP THERE MR TESAR AND OTHERS ALSO WORRY ABOUT SPECULATORS EVEN HINTING THAT FOREIGNERS SO FAR HAVE BEEN BARRED FROM TRADING TO KEEP THEM FROM PROFITING FROM THE INEVITABLE UPSWING IN BANK SHARE PRICES WHAT'S GAINED BY LETTING FOREIGN INVESTORS BUY BANK SHARES ONE MONTH AND SELL THEM AT DOUBLE THE PRICE THREE MONTHS LATER ASKS MARTIN SVEHLA THE NATIONAL BANK SPOKESMAN I WOULD SAY NOTHING ALL THIS DOES IS LEAD TO FURTHER SPECULATION TALK OF THIS SORT MAKES TRADERS HERE SQUIRM MORE THAN ANY OTHER COUNTRY IN THE POSTCOMMUNIST WORLD THEY POINT OUT THE CZECH REPUBLIC HAS EARNED A REPUTATION IN RECENT YEARS AS A CHAMPION OF THE FREE MARKET AND FREE AND OPEN MARKETS BY DEFINITION DON'T DISCRIMINATE BETWEEN DOMESTICS AND FOREIGNERS WHEN IT COMES TO MAKING PROFITS OR ANYTHING ELSE SAYS MR ANGELL THE OPENNESS OF THE MARKET HERE IS ONE OF THE THINGS THAT HAS MADE THE PLACE SO ATTRACTIVE TO FOREIGNERS MR TESAR AND OTHERS AT THE NATIONAL BANK HOWEVER ARGUE THAT RESTRICTIONS NOW IN PLACE ARE HARDLY MORE RESTRICTIVE THAN THOSE IN OTHER DEVELOPING ECONOMIES SPECIAL CONDITIONS THEY SAY CALL FOR SPECIAL PRECAUTIONS AT A TIME WHEN LIQUIDITY HERE IS VERY LOW AND OUR MARKET IS ONLY JUST BEGINNING TO DEVELOP SAYS MR SVEHLA IT'S NOT POSSIBLE TO LET BANK CAPITAL AND SHARES FLOW ABROAD WITHOUT ANY CONTROL 9312200072 931220 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED 13 NEW LISTINGS INCLUDING SEVEN INITIAL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 29 NEW LISTINGS INCLUDING 27 INTITIAL OFFERINGS THE AMERICAN STOCK EXCHANGE ANNOUNCED THREE NEW LISTINGS THE BIG BOARD BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS J & L SPECIALTY STEEL INC PITTSBURGH UNDER JL A STAINLESS STEEL MAKER PAKISTAN INVESTMENT FUND INC NEW YORK UNDER PKF AN INVESTMENT FUND SIMON PROPERTY GROUP INC INDIANAPOLIS SPG A REAL ESTATE INVESTMENT TRUST MARCUS CORP MILWAUKEE MCS A HOTEL DINING AND MOVIE THEATRE COMPANY AMWAY ASIA PACIFIC LTD HONG KONG AAP THE DISTRIBUTION VEHICLE FOR AMWAY PRODUCTS IN SEVERAL ASIAN COUNTRIES GRUPO MEXICANO DE DESARROLLO SA DE CV CUAJIMALPA MEXICO SERIES B AMERICAN DEPOSITARY SHARES GMD A CONSTRUCTION COMPANY AND HOME HOLDINGS INC NEW YORK HHI A PROPERTY CASUALTY INSURANCE COMPANY THE BIG BOARD ALSO BEGAN TRADING BERGEN BRUNSWIG CORP ORANGE CALIF CLASS A COMMON SHARES BBC PREVIOUSLY TRADED ON THE AMEX A DISTRIBUTOR OF PHARMACEUTICAL AND HEALTHCARE PRODUCTS AND FLETCHER CHALLENGE LTD PENROSE AUCKLAND NEW ZEALAND AMERICAN DEPOSITARY SHARES UNDER FLC AND ITS FOREST DIVISION SHRES UNDER FFS FLETCHER HAS INTERESTS IN PULP PAPER AND ENERGY THE BIG BOARD ADDED THE GLOBAL DEPOSITARY SHARES OF GRUPO TELEVISA SA MEXICO CITY UNDER TV MEXICO'S LARGEST MEDIA COMPANY CONTINENTAL HOMES HOLDING CORP SCOTTSDALE ARIZ CON A SINGLEFAMILY HOME BUILDER WHICH PREVIOUSLY TRADED ON THE AMEX EASTMAN CHEMICAL CO KINGSPORT TENN EMN A CHEMICAL COMPANY SPINOFF FROM EASTMAN KODAK CO AND WISER OIL CO DALLAS WZR AN OIL AND GAS COMPANY WHICH PREVIOUSLY TRADED OVER THE COUNTER WANG LABORATORIES INC LOWELL MASS WANGV A SOFTWARE AND COMPUTER COMPANY AND WARRANTS UNDER WANWV WAS ADDED TO THE NASDAQ NATIONAL MARKET FOLLOWING REORGANIZATION UNDER CHAPTER 11 AND SAGE TECHNOLOGIES INC STAMFORD CONN SASZ A PROVIDER OF COMPUTER PRODUCTS MOVED TO THE NATIONAL MARKET AFTER TRADING ON THE NASDAQ SMALLCAP MARKET THE AMEX BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS THERMO REMEDIATION INC APOPKA FLA THN AN ENVIRONMENTAL REMEDIATION COMPANY ALEXANDER HAAGEN PROPERTIES INC MANHATTAN BEACH CALIF ACH AND CONVERTIBLE DEBENTURES UNDER ACHA A REAL ESTATE INVESTMENT TRUST AND TEXAS BIOTECHNOLOGY CORP UNITS A DEVELOPER OF PHARMACEUTICAL COMPOUNDS UNDER TXBE THE UNITS CONSIST OF COMMON STOCK AND ONE REDEEMABLE COMMON STOCK PURCHASE WARRANT AMEX'S EMERGING COMPANY MARKETPLACE BEGAN TRADING COMMON SHARES OF SHEFFIELD EXPLORATION CO DENVER SHEEC AN OIL AND GAS PRODUCER AMEX ALSO LISTED MERRILL LYNCH & CO AMEX HONG KONG 30 INDEX CALL WARRANTS UNDER MHWWS THE PACIFIC STOCK EXCHANGE SAID IT BEGAN TRADING OPTIONS ON ZENITH LABORATORIES INC 9312200071 931220 SPANISH BANKS SAY '94 WILL BE A TOUGH YEAR WITH FALLING INTEREST RATES INCREASE IN BAD DEBTS PROFIT IS LIKELY TO SUFFER BY NICHOLAS BRAY AND CARLTA VITZTHUM STAFF REPORTERS OF THE WALL STREET JOURNAL MADRID SPANISH BANKS ARE FIGHTING THEIR WAY THROUGH A MINEFIELD OF FALLING INTEREST RATES AND RISING BAD DEBTS AND AT LEAST SOME SEEM LIKELY TO BE HIT BY A REDUCTION IN EARNINGS IN 1994 NEXT YEAR IS GOING TO BE DIFFICULT SAYS RICARDO LACASA GENERAL MANAGER OF BANCO POPULAR ESPANOL LONG ONE OF SPAIN'S MOST PROFITABLE BANKS LOWER INTEREST RATES MEAN BANKS CAN'T CHARGE AS MUCH AS THEY ONCE CHARGED FOR LOANS WHILE THEY STILL HAVE TO PAY HIGH RATES TO DEPOSITORS FOR FEAR OF SEEING THEIR DEPOSITS DRAIN INTO MONEYMARKET FUNDS AND OTHER VEHICLES SPAIN'S ECONOMY MEANWHILE HAS CAUGHT A SEVERE COLD AMID CONTINENTAL EUROPE'S RECESSION LEADING TO MORE BANKRUPTCIES AND A SHARP RISE IN BAD DEBTS EVERYONE IS SAYING THE SAME THING ANOTHER SPANISH BANKER SAYS WHEN MY COLLEAGUES AT OTHER BANKS DO THEIR SUMS TO TRY AND FIGURE OUT WHERE THEY ARE GOING TO EARN MORE MONEY NEXT YEAR THEY SAY THE FIGURES JUST DON'T ADD UP IN 1993 BANKS WERE ABLE TO MAKE UP FOR LOWER INTEREST RATES AND RISING BAD DEBTS THANKS TO WINDFALL PROFITS FROM CURRENCY AND BOND TRADING AMID THE TURMOIL SURROUNDING THE PESETA A REDUCTION IN BANK OF SPAIN RESERVE REQUIREMENT ALSO ENABLED BANKS TO BOOST EARNINGS BY MAKING MORE FUNDS AVAILABLE FOR LENDING BUT THESE PROFITS AREN'T LIKELY TO BE REPEATED IN 1994 ON AVERAGE INVESTMENT ANALYSTS SAY THEY EXPECT SPANISH BANKS' EARNINGS TO BE FLAT IN 1994 ONLY A HANDFUL OF BANKS NOTABLY ARGENTARIA AND BANCO SANTANDER REMAIN CONSISTENT FAVORITES AMONG ANALYSTS CHIEF ON THEIR WORRY LIST BY CONTRAST IS BANCO ESPANOL DE CREDITO OR BANESTO WHICH HAS BEEN STRUGGLING WITH BAD DEBTS A PLAN TO SHORE UP BANESTO'S CAPITALADEQUACY RATIOS ESTABLISHED BETWEEN ITS CHAIRMAN MARIO CONDE AND JP MORGAN & CO THE US INVESTMENT BANK INJECTED 95 BILLION PESETAS OF CASH THIS YEAR BUT PLANS FOR A 400 MILLION CONVERTIBLEBOND ISSUE HAVE BEEN POSTPONED UNTIL NEXT YEAR AND A DOWNGRADE BY STANDARD & POOR'S CORP OF BANESTO'S SHORTTERM DEBT RATING TO SINGLEA2 FROM SINGLEA1 HAVE ADDED TO ANALYSTS' CONCERN MANY ANALYSTS PREDICT BANESTO WILL HAVE A LOSS THIS YEAR AND OMIT ITS DIVIDEND A BANK SPOKESMAN SAID BANESTO EXPECTS TO BREAK EVEN THE BOND ISSUE IS EXPECTED TO TAKE PLACE IN MARCH OR APRIL ONCE MARKET CONDITIONS IMPROVE HE SAID AND THE BANK IS SETTING ASIDE MORE THAN EXPECTED FOR PROVISIONS FOR BAD DEBTS PREDICTED TO REACH 80 BILLION PESETAS THIS YEAR WHETHER BANESTO WILL PAY A DIVIDEND REMAINS UNCLEAR HOWEVER HE SAID THOUGH A FEW ANALYSTS SAY BANESTO COULD BE A GOOD BUY AT CURRENT LOW LEVELS OTHERS ADVISE CLIENTS NOT TO BUY ITS SHARES ANOTHER BANK WHOSE PERFORMANCE DISAPPOINTS ANALYSTS IS BANCO CENTRAL HISPANO THE PRODUCT OF A MERGER TWO YEARS AGO BETWEEN BANCO CENTRAL AND BANCO HISPANO AMERICANO THOUGH ITS SIZE NORMALLY WOULD GIVE IT A TREMENDOUS COMMERCIAL ADVANTAGE OVER OTHER BANKS BCH DOESN'T SEEM TO HAVE HIT ITS STRIDE TO MAKE UP FOR WEAKENING BANKING PROFIT BCH SAID IT WILL RAISE SOME 60 BILLION PESETAS THROUGH ASSET SALES THIS YEAR INCLUDING THE SALE OF PART OF THE BRANCH NETWORK OF BANCO DE FOMENTO TO A SPANISH SAVINGS BANK BCH ANNOUNCED THE SALE OF HALF OF ITS 50 STAKE IN A SPANISH INSURANCE JOINT VENTURE TO ITS PARTNER ITALIAN INSURER ASSICURAZIONI GENERALI SPA WHICH ALREADY OWNED THE OTHER 50 BANCO BILBAO VIZCAYA THE PRODUCT OF A MERGER BETWEEN BANCO DE BILBAO AND BANCO DE VIZCAYA IS EXPANDING IN PORTUGAL AND LATIN AMERICA BUT STILL ISN'T PERFORMING SENSATIONALLY IN TERMS OF PROFIT ANALYSTS SAY THEY EXPECT A SLIGHT FALL IN 1994 NET EARNINGS AFTER A LIKELY 2 INCREASE IN 1993 COMPETITION IS SHARPENING THANKS TO THE EMERGENCE OF ARGENTARIA AS A NEW FORCE IN SPANISH BANKING ARGENTARIA WHICH FLOATED 50 OF ITS SHARES IN A TWOSTAGE PARTIAL PRIVATIZATION OPERATION THIS YEAR SET A TARGET OF BECOMING A LEADING COMMERCIAL AND RETAIL BANKING FORCE BY POOLING THE STRENGTHS OF ITS MORTGAGE CORPORATE AND RETAIL BANKING ARMS ANALYSTS RECOMMEND BUYING ITS SHARES BANCO POPULAR THOUGH STILL RECOGNIZED AS ONE OF SPAIN'S BESTMANAGED BANKS IS LESS OF A FAVORITE THAN IT ONCE WAS THANKS TO CUTTING COSTS AND A POLICY OF AVOIDING PAYING HIGH INTEREST RATES ON DEPOSITS MR LACASA PREDICTS BANCO POPULAR IS LIKELY TO SURVIVE THE STORM BETTER THAN MANY OF ITS COMPETITORS BUT ITS SHARE PRICE HAS FALLEN SHARPLY IN RECENT MONTHS AT JAMES CAPEL IN MADRID ALVARO VILLACIEROS DIRECTOR OF TRADING AND SALES RECOMMENDS SELLING BANCO POPULAR BANCO SANTANDER ONE OF THE MAIN STARS IN SPANISH BANKING IS REAPING DIVIDENDS FROM AN AGGRESSIVE COMMERCIAL POLICY AT HOME WHICH HAS ENABLED IT TO INCREASE ITS MARKET SHARE OF BOTH INVESTMENTFUND BUSINESS AND MORTGAGES AND FROM FORAYS INTO THE US AND LATIN AMERICA SANTANDER'S 20 STAKE IN FIRST FIDELITY CORP OF THE US IS PAYING HANDSOME DIVIDENDS WITH PESETA VALUE ENHANCED BY THE PESETA'S FALL AGAINST THE DOLLAR IT ALSO IS REAPING THE FRUITS OF THE SUCCESS OF ITS UK BANKING PARTNER ROYAL BANK OF SCOTLAND IN WHICH IT HAS A 10 STAKE ANALYSTS SAY THEY EXPECT SANTANDER TO POST A 10 JUMP IN PROFIT THIS YEAR AND A SLIGHT RISE NEXT YEAR OVERALL APPROXIMATELY 40 OF SANTANDER'S EARNINGS THIS YEAR ARE EXPECTED TO COME FROM OUTSIDE SPAIN 9312200070 931220 A TALE OF FED TRANSCRIPTS BY MILTON FRIEDMAN AND ANNA J SCHWARTZ THE FEDERAL OPEN MARKET COMMITTEE SCHEDULED TO MEET TOMORROW CAN BE EXPECTED TO DISCUSS THE POSSIBLE DISCLOSURE OF ITS TRANSCRIPTS SINCE 1976 IN MAY 1976 THE FEDERAL RESERVE PUBLICLY STATED THAT IT WAS GOING TO DISCONTINUE THE PREPARATION OF MINUTES OF FOMC MEETINGS WHICH IT HAD BEEN RELEASING AFTER A FIVEYEAR LAG THE HOUSE COMMITTEE ON BANKING FINANCE AND URBAN AFFAIRS UNDER THE CHAIRMANSHIP OF HENRY B GONZALEZ RECENTLY DISCOVERED THAT THE FED HAD IN FACT KEPT TRANSCRIPTS OF AUDIO TAPES OF ALL MEETINGS AFTER 1976 THE FED'S EMBARRASSMENT AT THIS DISCOVERY WAS REINFORCED WHEN THE GONZALEZ COMMITTEE OBTAINED NOTES OF A TELEPHONE CONFERENCE ON OCT 15 AMONG THE MEMBERS OF THE BOARD AND THE PRESIDENTS OF THE REGIONAL FEDERAL RESERVE BANKS IN THE COURSE OF THE CONFERENCE FED CHAIRMAN ALAN GREENSPAN DISCUSSED HOW THE PARTICIPANTS SHOULD HANDLE THE DISCREPANCY BETWEEN ANNOUNCED AND ACTUAL POLICY IN TESTIMONY BEFORE THE GONZALEZ COMMITTEE FOUR DAYS LATER THIS RECENT AND CONTINUING BROUHAHA RECALLS OUR OWN EXPERIENCE WITH THE FED WHEN WE WERE WRITING OUR MONETARY HISTORY PUBLISHED IN 1963 AT THE TIME THE FED MADE PUBLIC ONLY THE SUMMARIES OF THE BOARD'S OR FOMC'S POLICY DECISIONS THAT IT WAS REQUIRED BY LAW TO INCLUDE IN THE ANNUAL REPORTS OF THE BOARD OF GOVERNORS OUR ONLY FULL SOURCE OF INFORMATION ON WHAT WENT ON AT FED MEETINGS CAME FROM THE PAPERS OF GEORGE HARRISON GOVERNOR AND THEN PRESIDENT OF THE FEDERAL RESERVE BANK OF NEW YORK FROM 1928 TO 1940 FORTUNATELY MR HARRISON'S PAPERS ON DEPOSIT AT THE COLUMBIA UNIVERSITY LIBRARY WITH NO RESTRICTIONS ON ACCESS CONTAINED COPIES OF DETAILED MINUTES OF FOMC MEETINGS THEY PROVIDED US WITH VALUABLE INFORMATION FOR A LIMITED PERIOD AND ESTABLISHED THAT SUCH MINUTES WERE KEPT AT THE FED FOR INTERNAL CIRCULATION AFTER WE HAD COMPLETED OUR SEMIFINAL MANUSCRIPT WE SENT A COPY ON JAN 5 1962 TO WILLIAM MCCHESNEY MARTIN CHAIRMAN OF THE BOARD AT THE TIME ASKING FOR CRITICISMS AND IN PARTICULAR THE CORRECTION OF ANY FACTUAL ERRORS WE MIGHT HAVE MADE BECAUSE WE LACKED ACCESS TO FED MINUTES WE RECEIVED A COURTEOUS REPLY DATED JAN 15 ACKNOWLEDGING THE RECEIPT OF THE COPY AND SAYING WE WILL DO THE BEST WE CAN TO LET YOU HAVE ANY COMMENTS OR SUGGESTIONS BY FEB 15 BUT AS I AM SURE YOU REALIZE WE ARE UNDER CONSIDERABLE PRESSURE AT THAT TIME OF THE YEAR WE NEVER HEARD ANOTHER WORD NO CRITICISMS NO CORRECTIONS OF ERRORS NOTHING DESPITE THE OFFICIAL SILENCE WE LEARNED THROUGH UNOFFICIAL CHANNELS THAT A LENGTHY REVIEW OF OUR MANUSCRIPT HAD BEEN PREPARED AT THE FED FOR INTERNAL CIRCULATION BUT WE WERE UNABLE TO GET A COPY OUR BOOK WAS HIGHLY CRITICAL OF THE FED IN PARTICULAR IT ATTRIBUTED THE DEPTH OF THE 192933 DEPRESSION AND THE OCCURRENCE OF THE LATER 193738 RECESSION TO FED MISMANAGEMENT AFTER ITS PUBLICATION THE FED DISCUSSED THE ADVISABILITY OF PROVIDING FINANCIAL ASSISTANCE TO A WRITER TO PREPARE AN ALTERNATIVE MONETARY HISTORY BUT IT TOOK NO ACTION HOWEVER THE PUBLICATION OF OUR BOOK PLUS CONGRESSIONAL REQUESTS FOR FOMC MINUTES APPARENTLY INDUCED THE FOMC TO RELEASE THE MINUTES THOUGH ONLY AFTER A FIVEYEAR LAG THE MINUTES OF DISCUSSIONS OF POLICY ACTIONS FOR ALL MEETINGS FROM 1936 THROUGH 1960 WERE TRANSFERRED TO THE NATIONAL ARCHIVES IN 1964 THOSE FOR 1961 AND SUBSEQUENT YEARS WERE TRANSFERRED AFTER THE LAG THE NATIONAL ARCHIVES FURNISHED COMPLETE MICROFILM COPIES OF THESE MINUTES COPIES OF THE MINUTES WERE ALSO MADE AVAILABLE FOR PUBLIC INSPECTION AT THE BOARD'S OFFICES IN WASHINGTON AND AT EACH FEDERAL RESERVE BANK AND BRANCH IN 1967 THE BOARD ALSO BEGAN TO PUBLISH IN THE FEDERAL RESERVE BULLETIN APPROXIMATELY 90 DAYS FOLLOWING THE DATE OF AN FOMC MEETING THE RECORD OF POLICY ACTIONS THAT ENDS WITH THE DIRECTIVE TO THE TRADING DESK AT THE NEW YORK FEDERAL RESERVE BANK IT PROVIDED THIS INFORMATION IN THE FORM IN WHICH IT WOULD APPEAR IN THE ANNUAL REPORT THE LAG IN PUBLICATION OF THE DIRECTIVE HAS SINCE BEEN REDUCED TO ABOUT 45 DAYS THE GONZALEZ BILL ON WHICH THE HOUSE BANKING COMMITTEE HELD HEARINGS IN OCTOBER REQUIRES PUBLICATION OF THE MINUTES WITHIN 60 DAYS NOT FIVE YEARS AND OF THE DIRECTIVE WITHIN ONE WEEK NOT SEVEN WEEKS OF AN FOMC MEETING IN 1976 THE FED WAS SUED ON THE GROUND THAT FAILURE TO RELEASE IMMEDIATELY THE FOMC POLICY DIRECTIVE AND MEMORANDUMS OF DISCUSSION WAS A VIOLATION OF THE FREEDOM OF INFORMATION ACT OF SEPTEMBER 1966 A LOWER COURT IN MARCH 1976 RULED IN FAVOR OF THE PLAINTIFF AT THE NEXT FOMC MEETING IN MAY 1976 THE FED ANTICIPATING THE PASSAGE OF THE GOVERNMENT IN THE SUNSHINE ACT THAT WAS THEN UNDER LEGISLATIVE CONSIDERATION ANNOUNCED THAT IT WOULD DISCONTINUE TAKING MINUTES THE SUNSHINE ACT SPECIFIED AMONG OTHER THINGS THAT ALL GOVERNMENT MEETINGS WITH NARROWLY DEFINED EXCEPTIONS HAD TO BE OPEN TO THE PUBLIC THE FED REGARDED FOMC MEETINGS AS QUALIFYING UNDER ONE OF THE EXCEPTIONS BUT APPARENTLY THOUGHT IT WOULD BE FURTHER PROTECTED IF IT KEPT NO MINUTES IT COULD NOT BE FORCED TO RELEASE MINUTES THAT DID NOT EXIST IN ANY EVENT IN 1977 THE SUPREME COURT REVERSED THE LOWER COURT RULING MANDATING IMMEDIATE RELEASE OF THE DIRECTIVE AND MINUTES THE FED HAS JUSTIFIED NOT MAKING PUBLIC THE MINUTES OF FOMC MEETINGS THAT IT HAS KEPT SINCE 1976 ON THE GROUNDS THAT DOING SO WOULD 1 INHIBIT THE FREE EXPRESSION OF FOMC PARTICIPANTS' VIEWS OR GIVE THE IMPRESSION THAT DISCUSSIONS WERE SHALLOW AND 2 RELEASE SENSITIVE INFORMATION ABOUT FED FOREIGN EXCHANGE OPERATIONS FORMER GOVERNOR JL ROBERTSON DISPOSED OF THE FIRST JUSTIFICATION IN A LETTER TO REP STEPHEN NEAL IN 1977 MEN COMPETENT TO SERVE IN THESE ROLES SHOULD BE WILLING AND ANXIOUS TO STAND ON THEIR RECORDS AND BE HELD RESPONSIBLE FOR THE WAY IN WHICH THEY PLAY THEIR RESPECTIVE ROLES AS FOR THE SECOND JUSTIFICATION THE FED DELETED MATERIAL THAT IT REGARDED AS SENSITIVE FROM THE MINUTES IT RELEASED THROUGH MARCH 1975 THE FED HAS JUSTIFIED THE SEVENWEEK LAG IN RELEASING THE DIRECTIVE ON THE GROUND THAT PROMPT RELEASE WOULD DESTABILIZE THE MARKET WE HAVE ALWAYS REGARDED THAT CLAIM AS A RATIONALIZATION NOT A VALID REASON THE SITUATION SEEMS TO US PRECISELY THE REVERSE SECRECY HAS PROMOTED AN INDUSTRY OF FED WATCHERS CONSISTING IN CONSIDERABLE MEASURE OF FORMER FED EMPLOYEES WHO HAVE MADE A NICE LIVING BY READING THE TEA LEAVES GENERATED BY THE FED AND INFORMING THEIR CLIENTS OF WHAT THEY DETECT AS CHANGES IN FED POLICY PROMPT RELEASE OF THE DIRECTIVE WOULD DEPRIVE THE FED WATCHERS OF THEIR PRESENT EMPLOYMENT BUT WOULD IMPROVE THE OPERATION OF THE MONEY MARKET BY ENSURING THAT PROMPT INFORMATION WAS AVAILABLE TO ALL PARTICIPANTS ALIKE IT WOULD ALSO INCREASE THE EFFECTIVENESS OF THE FED'S OPERATIONS SINCE BETTER INFORMED MARKET PARTICIPANTS WOULD HAVE AN INCENTIVE TO SPEED THE ATTAINMENT OF THE FED'S OBJECTIVES WE SEE ONLY ONE EXPLANATION FOR THE FED'S INSISTENCE ON SECRECY OVER THE WHOLE OF ITS HISTORY TWO THINGS HAVE BEEN CONSTANT THE FED'S DESIRE TO AVOID ACCOUNTABILITY AND ITS EFFORTS TO MAINTAIN A FAVORABLE PUBLIC IMAGE THEY EXPLAIN BOTH ITS SECRECY AND ITS CONSISTENT OPPOSITION TO EVERY ATTEMPT TO ESTABLISH CLEAR CRITERIA FOR JUDGING ITS PERFORMANCE MR FRIEDMAN RESEARCH FELLOW AT THE HOOVER INSTITUTION IN STANFORD CALIF WAS AWARDED THE 1976 NOBEL PRIZE IN ECONOMICS MRS SCHWARTZ A RESEARCH ASSOCIATE OF THE NATIONAL BUREAU OF ECONOMIC RESEARCH WILL BE NAMED A DISTINGUISHED FELLOW OF THE AMERICAN ECONOMIC ASSOCIATION NEXT MONTH 9312200069 931220 ABREAST OF THE MARKET JOLLY WALL STREET ANALYSTS RAISE EARNINGS ESTIMATES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALL STREET ANALYSTS ARE DOING THE UNTHINKABLE THEY ARE RAISING THEIR EARNINGS ESTIMATES EVEN AS THE YEAR DRAWS TO A CLOSE TO STOCK MARKET BULLS THAT'S THE BEST CHRISTMAS PRESENT SANTA COULD BRING AFTER THREE LONG YEARS THE BULL MARKET IN STOCKS IS GETTING OLD AND WITH SHORTTERM INTEREST RATES POISED TO RISE NEXT YEAR THE ONLY SALVATION FOR STOCKS IS HIGHER CORPORATE PROFITS ANALYSTS SAY I THINK EARNINGS ARE GOING TO BE MUCH BETTER THAN PEOPLE ARE LOOKING FOR SAYS ELAINE GARZARELLI LEHMAN BROTHERS' STAR STOCK STRATEGIST AND IF THAT'S THE CASE THIS BULL MARKET COULD BE MUCH STRONGER THAN WE THINK LAST MONTH WALL STREET ANALYSTS RAISED THEIR 1993 EARNINGS ESTIMATES FOR COMPANIES IN THE STANDARD & POOR'S 500STOCK INDEX TO 2719 A SHARE FROM 2716 A SHARE THE PREVIOUS MONTH ACCORDING TO I/B/E/S A SERVICE THAT MONITORS ANALYSTS' EARNINGS FORECASTS ALTHOUGH THE RISE IS ALMOST IMPERCEPTIBLE AND THE TREND IS UNLIKELY TO CONTINUE STOCK STRATEGISTS ARE TAKING NOTICE BECAUSE IT IS SUCH A RARE OCCURRENCE ANALYSTS HAVEN'T RAISED THEIR FORECASTS SO LATE IN THE YEAR FOR AT LEAST FOUR YEARS GENERALLY STRATEGISTS START THE YEAR ON AN OPTIMISTIC NOTE AND ARE FORCED TO CUT THEIR EARNINGS ESTIMATES LATE IN THE YEAR WHEN IT BECOMES CLEAR THAT THEIR ROSY FORECASTS HAVE NO CHANCE OF MATERIALIZING BUT THIS YEAR ROBUST GAINS IN PRODUCTIVITY TOGETHER WITH SIGNS OF A STRONG PICKUP IN THE ECONOMY ARE MAKING A COMPELLING CASE FOR HIGHER PROFITS IT'S VERY UNUSUAL FOR ANALYSTS TO RAISE THEIR EARNINGS ESTIMATES LATE IN THE YEAR SAYS RICHARD PUCCI SENIOR VICE PRESIDENT AT I/B/E/S WHAT IS HAPPENING IS THAT EVEN THOUGH THE ECONOMY IS RELATIVELY SLACK BOTTOM LINES ARE GROWING PRETTY HEALTHILY TYPICALLY DURING THE COURSE OF A YEAR WALL STREET ANALYSTS SLASH THEIR PROFITS ESTIMATES BY ABOUT 13 WHAT'S REMARKABLE THIS YEAR MR PUCCI SAYS IS THAT 1993 EARNINGS ESTIMATES HAVE BEEN CUT BY ONLY 7 FROM THE ESTIMATES THAT PREVAILED AT THE BEGINNING OF THE YEAR DESPITE THE MODEST INCREASE IN THE OVERALL EARNINGS OUTLOOK FOR 1993 ANALYSTS LOWERED MORE INDIVIDUAL COMPANY ESTIMATES THAN THEY RAISED IN NOVEMBER BUT MR PUCCI NOTES THE RATIO BETWEEN THE TWO HAS IMPROVED SIGNIFICANTLY SINCE OCTOBER WHEN A BETTERTHANEXPECTED THIRDQUARTER EARNINGS SEASON CAUGHT SOME ANALYSTS FLATFOOTED I THINK EVERYONE IS SURPRISED BY HOW MUCH PRODUCTIVITY IS BEING WRUNG OUT OF CORPORATE AMERICA HE SAYS HE NOTES THAT MOST OF THE EARNINGSBOOSTING IS COMING IN THE CONSUMER DURABLE GOODS AREA DURING THE PAST FOUR WEEKS FOR INSTANCE ANALYSTS HAVE JACKED UP THEIR ESTIMATES FOR AUTOMOTIVE COMPANIES WITH EXPECTATIONS FOR FORD MOTOR RISING THE MOST ACCORDING TO I/B/E/S ANALYSTS ARE ALSO LOOKING FOR BETTER EARNINGS FROM BANKS EARNINGS ESTIMATES FOR BANKS HAVE RISEN 04 IN THE PAST MONTH MR PUCCI SAYS WITH ANALYSTS NOW EXPECTING SHARPLY HIGHER PROFITS FROM CHASE MANHATTAN CITICORP FIRST CHICAGO AND WELLS FARGO NOT SURPRISINGLY THE RECENT RISE IN GOLD IS PUTTING A GLIMMER ON THE PROFIT OUTLOOK FOR MANY PRECIOUSMETALS PRODUCERS ACCORDING TO MR PUCCI ANALYSTS HAVE RAISED THEIR PROFIT FORECASTS FOR PRECIOUSMETALS COMPANIES BY 32 IN THE PAST MONTH WITH NEWMONT MINING AND HOMESTAKE MINING DRAWING THE MOST ENTHUSIASM FROM WALL STREET TO STOCK MARKET BULLS LIKE MS GARZARELLI THE ROSIER PROFIT OUTLOOK COMES AS A PLEASANT BOOST SHE WAS RECENTLY FORCED TO REVISE HER OWN EARNINGS FORECASTS UPWARDS BECAUSE HER HISTORICALLY BASED MODELS HAD BEEN UNDERESTIMATING CORPORATE PROFITS AS THEY ROLLED IN THIS YEAR THIS IS THE FIRST TIME MY MODELS ARE UNDERESTIMATING EARNINGS SHE SAYS AND IT TELLS ME SOMETHING IS GOING ON HERE WHAT MS GARZARELLI SUSPECTS IS HAPPENING IS THAT ALL THE COSTCUTTING CORPORATE AMERICA HAS GONE THROUGH DURING THE PAST SEVERAL YEARS IS SHORING UP PROFIT MARGINS MAKING EARNINGS LOOK GOOD EVEN WHILE THE ECONOMY IS GROWING ONLY MODESTLY AS LONG AS THAT TREND CONTINUES STOCK PRICES COULD CLIMB EVEN HIGHER STRATEGISTS SAY THE ONLY THING THAT IS GOING TO PROPEL THE MARKET FORWARD IS GOOD EARNINGS WHICH WE HAVE SAYS JEFFREY APPLEGATE CHIEF INVESTMENT STRATEGIST AT CS FIRST BOSTON ALTHOUGH A RISE IN SHORTTERM INTEREST RATES WILL LIKELY JOLT THE STOCK MARKET MR APPLEGATE ISN'T WORRIED ABOUT A STEEP SELLOFF I DON'T THINK YOU'LL GET A SIZABLE CORRECTION BECAUSE YOU DON'T HAVE A SHARP ROLLOVER IN EARNINGS MOMENTUM OR EXTREMELY BULLISH SENTIMENT HE SAYS ALTHOUGH SOME STOCK STRATEGISTS SUCH AS GOLDMAN SACHS'S ABBY COHEN ARE EXPECTING HEALTHY PROFIT GROWTH THEY CAUTION AGAINST READING TOO MUCH INTO THE I/B/E/S DATA MS COHEN SAYS THAT EVEN AS ANALYSTS WERE RAISING THEIR EARNINGS ESTIMATES FOR 1993 LAST MONTH THEY WERE ALSO REDUCING THEIR FORECASTS FOR 1994 AT THIS STAGE OF THE GAME I WOULD BE WATCHING WHAT'S GOING ON WITH 1994 NUMBERS SAYS MS COHEN NOTWITHSTANDING THAT MS COHEN THINKS EARNINGS WON'T BE A PROBLEM FOR THE STOCK MARKET NEXT YEAR ON AN OPERATING BASIS SHE EXPECTS PROFITS FOR THE S&P TO CLIMB BETWEEN 10 TO 12 IN 1994 AND ON A REPORTED BASIS EARNINGS COULD LOOK EVEN MORE SPECTACULAR STILL SOME SKEPTICS AREN'T CONVINCED MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER SAYS WALL STREET HAS OVERESTIMATED THE EARNINGS GAINS FOR NEXT YEAR AND EVEN IF THE ANALYSTS ARE RIGHT ON TARGET WITH THEIR FORECASTS MR METZ DOUBTS IT WILL MAKE A DIFFERENCE FOR STOCKS OTHER VARIABLES SUCH AS INTEREST RATES WHICH HE EXPECTS WILL RISE MARKEDLY AND THE FLOW OF CASH INTO FINANCIAL ASSETS WHICH HE BELIEVES WILL SLOW ARE LIKELY TO SEND STOCK PRICES TUMBLING IN 1994 SAYS MR METZ I KNOW WALL STREET SPENDS BILLIONS OF DOLLARS ESTIMATING EARNINGS BUT I DON'T THINK IT DOES A VERY GOOD JOB OF IT AND I DON'T THINK IT'S RELEVANT TO THE MARKET'S PERFORMANCE NEXT YEAR HE SAYS STOCKS RALLIED AMID A FLURRY OF BUYING TIED TO QUARTERLY EXPIRATIONS OF OPTIONS AND FUTURES THE DOW JONES INDUSTRIAL AVERAGE JUMPED 2543 POINTS TO 375157 IN THE THIRD HEAVIEST TRADING DAY OF THE YEAR STANDARD & POOR'S 500STOCK INDEX GAINED 304 TO 46638 AND THE NASDAQ COMPOSITE INDEX ROSE 370 TO 75923 NEW YORK STOCK EXCHANGE VOLUME SURGED TO 357 MILLION SHARES FROM 2837 MILLION SHARES THURSDAY ADVANCING ISSUES OUTPACED DECLINERS 1453 TO 666 FOR THE WEEK THE DOW INDUSTRIALS INCHED UP 029 AND THE S&P 500 GAINED 053 BUT THE NASDAQ COMPOSITE SURRENDERED 020 INTERNATIONAL BUSINESS MACHINES JUMPED 2 1/4 TO A 1993 HIGH OF 59 3/4 IN HEAVY TRADING THE STOCK HAS BEEN ON THE RISE FOR SEVERAL WEEKS AS INVESTORS BET THE ARMONK NY COMPUTER MAKER'S FORTUNES ARE IMPROVING AFTER A STRING OF QUARTERLY LOSSES SEVERAL WALL STREET ANALYSTS HAVE BEEN FUELING THE RALLY BY RAISING THEIR FOURTHQUARTER EARNINGS ESTIMATES FOR IBM GENERAL ELECTRIC ADDED 1 5/8 TO 105 1/8 A 52WEEK HIGH AFTER THE FAIRFIELD CONN COMPANY RAISED ITS QUARTERLY DIVIDEND TO 72 CENTS FROM 63 CENTS THE INCREASED PAYOUT WILL BE MADE NEXT MONTH TO SHAREHOLDERS OF RECORD DEC 31 THE COMPANY ALSO SAID HOLDERS WILL VOTE IN APRIL ON A 2FOR1 STOCK SPLIT BRITISH PETROLEUM CONTINUED TO RALLY JUMPING 2 1/8 TO 62 7/8 THE OIL COMPANY SAID EARLIER THIS WEEK THAT IT IS ON TRACK TO MEET ITS PROFIT TARGETS BP SAID EFFORTS TO CUT COSTS BY 2 BILLION BY 1996 ARE PROCEEDING SMOOTHLY SHARES OF WANG LABORATORIES ANOTHER FORMER TECHNOLOGY BELLWETHER ADDED 2 1/8 TO 17 1/4 IN ITS FIRST FULL DAY OF WHENISSUED TRADING ON THE NASDAQ STOCK MARKET THE LOWELL MASS COMPANY'S STOCK HASN'T BEEN LISTED SINCE IT LEFT THE AMERICAN STOCK EXCHANGE LAST YEAR AFTER SEEKING BANKRUPTCYLAW PROTECTION FRUIT OF THE LOOM MOVED LOWER AGAIN DROPPING 5/8 TO 23 7/8 THE CHICAGO APPAREL CONCERN SAID THURSDAY ITS EARNINGS WILL FALL SHORT OF EXPECTATIONS DONALDSON LUFKIN & JENRETTE DOWNGRADED ITS SHARES TO NEUTRAL FROM VERY ATTRACTIVE AMWAY ASIA PACIFIC CONTINUED TO ADVANCE RISING 4 5/8 TO 35 1/2 THE COMPANY WHICH DISTRIBUTES AMWAY'S PERSONALCARE PRODUCTS IN ASIA AND AUSTRALIA WENT PUBLIC WEDNESDAY IN AN OFFERING PRICED AT 18 A SHARE TELEFONOS DE MEXICO'S AMERICAN DEPOSITARY RECEIPTS ADDED 1 1/8 TO 62 3/4 DEAN WITTER REYNOLDS ANALYST GUY WOODLIEF INITIATED COVERAGE OF THE MEXICAN TELEPHONE SERVICE COMPANY'S STOCK WITH A BUY RATING HE ALSO BEGAN COVERING SEVERAL BABY BELLS AMONG THEM SOUTHWESTERN BELL INCREASED 1 TO 43 5/8 AND AMERITECH GAINED 1 1/4 TO 78 7/8 DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9312200068 931220 CANADIAN CONSUMER PRICES OTTAWA CANADA'S CONSUMER PRICE INDEX ROSE A SEASONALLY ADJUSTED 02 IN NOVEMBER FROM OCTOBER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE NOVEMBER FIGURE FOLLOWED INCREASES OF 01 IN OCTOBER AND 04 IN SEPTEMBER 9312200067 931220 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN GERMAN LAWMAKERS MADE THE FIRST BIG REDUCTIONS IN SOCIAL PROGRAMS AND CRADLETOGRAVE BENEFITS THAT HAVE GROWN STEADILY SINCE WORLD WAR II PARLIAMENT REDUCED UNEMPLOYMENT BENEFITS CHILDSUPPORT PAYMENTS AND JOB RETRAINING PROGRAMS THE LEGISLATION EFFECTIVE JAN 1 ALSO PHASES OUT COMPENSATION TO CONSTRUCTION WORKERS SIDELINED BY BAD WEATHER AND IT BOOSTS GASOLINE TAXES MAKING GERMAN PUMP PRICES AMONG EUROPE'S MOST EXPENSIVE 323 FOR A GALLON OF UNLEADED REGULAR UP FROM 288 THE CUTBACKS THOUGH POLITICALLY RISKY FOR CHANCELLOR HELMUT KOHL IN HIS CAMPAIGN FOR REELECTION NEXT YEAR ARE AIMED AT LIFTING THE ECONOMY OUT OF RECESSION THE WELFARE REDUCTIONS AND OTHER MEASURES WILL SHRINK NEXT YEAR'S GOVERNMENT BUDGET GAP BY AN ESTIMATED 12 BILLION IN THE FIRST RUSSIAN JURY TRIAL SINCE THE 1917 REVOLUTION TWO BROTHERS WERE FOUND GUILTY OF MANSLAUGHTER IN THREE PEOPLE'S DEATHS AND SENTENCED TO JAIL FOR 12 TO 18 MONTHS THE DEFENDANTS IN SARATOV IN THE VOLGA REGION HAD REQUESTED THE TRIAL BY JURY A SYSTEM INTRODUCED IN 1864 IN CZARIST RUSSIA AND ABOLISHED BY BOLSHEVIK REVOLUTIONARIES AS CORRUPT AND BOURGEOIS JURY TRIALS HAVE BEEN ALLOWED UNDER A PILOT PROGRAM SINCE NOV 1 IN FIVE REGIONS AND COULD BE EXPANDED NEXT YEAR BENCH TRIALS UNDER THE FORMER SOVIET SYSTEM WERE SUBJECT TO POLITICAL PRESSURES MONACO WILL BUILD AN UNDERGROUND RAILWAY STATION AND CLOSE THE DOWNTOWN DEPOT TO FREE THAT 10ACRE SITE VALUED AT 200 MILLION FOR UNDISCLOSED DEVELOPMENT THE TINY PRINCIPALITY'S PROPERTY VALUES ARE AMONG THE WORLD'S HIGHEST THE NEW STATION ABOUT 1650 FEET LONG AND 33 FEET HIGH WILL BE BUILT UNDER THE ROCKBLUFF SITE OF THE ROYAL PALACE CATHEDRAL AND OCEANOGRAPHIC MUSEUM DESIGNED TO SERVE THREE MILLION PASSENGERS A YEAR IT IS TO OPEN IN 1998 WITH TUNNEL LINKS TO THE HIGHSPEED NETWORK OF THE FRENCH TRAIN COMPANY AND TO THE RAIL LINE TO ITALY THE GERMAN PARLIAMENT GAVE FINAL APPROVAL TO REVAMPING THE GOVERNMENT RAILROAD SYSTEM AS A JOINTSTOCK COMPANY ON JAN 1 IN HOPES THE NEW DEUTSCHE BAHN AG CAN OPERATE PROFITABLY THE LEGISLATION ABOLISHES PRIVILEGED CIVILSERVANT STATUS FOR RAILWAY WORKERS THAT SETS GUARANTEED PAY SCALES AND PROVIDES PROTECTION FROM LAYOFFS THE RAILROADS ALSO WILL BE FREED OF DEBT ESTIMATED TO TOTAL 4678 BILLION GERMAN STATES WILL TAKE OVER THE RAILROADS' UNPROFITABLE REGIONAL NETWORKS IN 1996 IN RETURN FOR FEDERAL PAYMENTS LATIN AMERICAN ECONOMIES THIS YEAR GREW AN AVERAGE OF 32 AND MANY CONTROLLED INFLATION A UNITED NATIONS AGENCY SAID THE EXPANSION PACE WAS SIMILAR TO LAST YEAR DESPITE THE GLOBAL DOWNTURN THE ECONOMIC COMMISSION FOR LATIN AMERICA IN SANTIAGO CHILE SAID CITING ECONOMIC STABILIZATION AND INDUSTRIAL DIVERSIFICATION INFLATION IS RUNNING BELOW 15 A YEAR IN MORE THAN HALF THE COUNTRIES INCLUDING ARGENTINA CHILE COSTA RICA DOMINICAN REPUBLIC EL SALVADOR GUATEMALA MEXICO AND PANAMA BUT REMAINS A PROBLEM IN BRAZIL PARAGUAY VENEZUELA AND URUGUAY REGIONAL EXPORTS GREW 9 BUT TRADE DEFICITS INCREASED BECAUSE OF PRICE DROPS A PHILIPPINE INVESTIGATOR SAID PEPSICO INC MIGHT HAVE FIREBOMBED ITS OWN TRUCKS TO DISCREDIT CONSUMERS SEEKING COMPENSATION IN A COMPANY PROMOTIONAL CAMPAIGN THE US SOFTDRINK AND RESTAURANT COMPANY HAD COMPLAINED TO THE NATIONAL BUREAU OF INVESTIGATION THAT THE 349 ALLIANCE HAD ATTACKED ITS DELIVERY TRUCKS IN THE MANILA AREA TO PROTEST PEPSI'S REFUSAL TO PAY MILLIONS OF DOLLARS IN CONSUMER CLAIMS IN THE 1992 PROMOTION PEPSI HAD PROMISED TO PAY UP TO ONE MILLION PESOS 36430 TO HOLDERS OF BOTTLE CAPS WITH WINNING NUMBERS WHEN THOUSANDS OF PEOPLE PRODUCED CAPS WITH THE NUMBER 349 PEPSI SAID IT WOULD HONOR ONLY THOSE BEARING A SPECIAL CODE THE NBI ORDERED ARRESTS OF TWO ALLIANCE OFFICERS LINKED TO THE ATTACKS BY A WITNESS WHOM INVESTIGATORS LEARNED GAVE A FALSE NAME AND TURNED OUT TO BE A PEPSI SECURITY GUARD THE NBI INVESTIGATOR SAID ALLIANCE OFFICERS MAY HAVE BEEN UNFAIRLY ACCUSED IN AT LEAST THREE ATTACKS ON PEPSI TRUCKS PEPSI SAID THE INVESTIGATOR'S STATEMENTS HAVE ABSOLUTELY NO BASIS IN FACT MUCH ACTIVITY IN RIO DE JANEIRO CAME TO A HALT FOR TWO MINUTES FRIDAY IN A SILENT PROTEST AGAINST A WAVE OF VIOLENCE IN THE BRAZILIAN CITY LAST YEAR IN RIO 3255 MURDERS WERE REPORTED OR 6075 FOR EVERY 100000 PEOPLE ALMOST DOUBLE NEW YORK'S RATE INDONESIA EXPECTS ITS POPULATION NOW 189 MILLION TO GROW 8 TO 204 MILLION BY 1998 UNDER A FIVEYEAR DEVELOPMENT PLAN THAT STARTS IN APRIL THE LABOR FORCE COULD TOTAL 70 MILLION UP 22 FROM 1991 9312200066 931220 VENEZUELA INVOKES GATT TO APPEAL AGAINST EPA RULES FOR GASOLINE IMPORTS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL VENEZUELA IS USING RECENTLY APPROVED INTERNATIONAL TRADE PACTS TO APPEAL AGAINST NEW ENVIRONMENTAL RULES FOR GASOLINE IMPORTED INTO THE US CHARGING TRADE DISCRIMINATION AGAINST ITS NATIONAL OIL COMPANY THE VENEZUELAN GOVERNMENT WILL PROTEST UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE OR GATT THE PROTEST IS AGAINST THE GASOLINE REGULATION ADOPTED LAST WEEK BY THE US ENVIRONMENTAL PROTECTION AGENCY IT IS ONE OF THE FIRST MAJOR TESTS OF GATT WHICH ALSO WAS SIGNED LAST WEEK IN CARACAS ALIRIO PARRA VENEZUELA'S OIL MINISTER CALLED THE NEW EPA RULES DISCRIMINATORY AND SAID THEY DIRECTLY AFFECT VENEZUELA IN VIOLATION NOT ONLY OF GATT BUT ALSO OF THE TERMS OF THE RECENTLY APPROVED NORTH AMERICAN FREE TRADE AGREEMENT OR NAFTA HE ACCUSED THE EPA OF PROMULGATING PROTECTIONIST TRADE THE EPA'S NEW RULES FOR REFORMULATED GASOLINE ISSUED UNDER THE 1990 CLEAN AIR ACT ARE SCHEDULED TO TAKE EFFECT IN 1995 THE RULES DETERMINE THE AMOUNTS OF POLLUTIONCAUSING COMPONENTS ALLOWED IN MOTOR FUEL WHICH MUST MEET CERTAIN SPECIFICATIONS IN 1995 BUT UNLIKE US REFINERS FOREIGN FIRMS WOULDN'T BE ABLE TO USE A FORMULA BASED ON THEIR 1990 GASOLINE PRODUCTION TO DETERMINE COMPLIANCE VENEZUELA IS A LEADING SOURCE OF OIL IMPORTS FOR THE US IT SUPPLIES THE US WITH MORE THAN 13 MILLION BARRELS OF CRUDE OIL AND PETROLEUM PRODUCTS A DAY INCLUDING SOME 70000 BARRELS A DAY OF GASOLINE SHIPPED MAINLY TO THE EAST COAST THE IDEA OF ITS REFINERIES BEING TREATED DIFFERENTLY THAN THOSE IN THE US HAD BECOME A MAJOR ISSUE IN VENEZUELA WHERE 1 BILLION IS BEING INVESTED TO UPGRADE REFINERIES TO PROCESS MOTOR FUEL FOR EXPORT BEFORE THE EPA ISSUED THE RULING PETROLEOS DE VENEZUELA OR PDVSA CLAIMED THAT IT WOULD HAVE A SIGNIFICANT NEGATIVE IMPACT ON VENEZUELA'S ABILITY TO SUPPLY GASOLINE TO THE US IT HAD URGED THE EPA TO INSERT LANGUAGE IN THE REGULATION THAT WOULD ALLOW PDVSA TO SEND THE US GASOLINE CONTAINING HIGHER LEVELS OF OLEFINS WHICH CONTRIBUTE TO SMOG PDVSA CLAIMED THE HIGHER OLEFINS COUNT WOULD BE MORE THAN OFFSET BY LOWER LEVELS OF OTHER POLLUTANTS IN SUPPORT OF THE PDVSA REQUEST VENEZUELA HAD LAUNCHED AN UNPRECEDENTED DIPLOMATIC OFFENSIVE SENDING SUCH TOP GOVERNMENT OFFICIALS AS MR PARRA THE OIL MINISTER TO WASHINGTON THE VENEZUELAN DIPLOMATS WON SYMPATHETIC HEARINGS FROM OFFICIALS AT THE STATE DEPARTMENT AND THE OFFICE OF THE US TRADE REPRESENTATIVE WHO URGED THE EPA TO GRANT THE VENEZUELAN REQUEST BUT THE EPA IN ISSUING THE REGULATION FOR ITS NEW REFORMULATED GASOLINE PROGRAM LAST WEEK DIDN'T ADDRESS THE VENEZUELAN REQUEST 9312200065 931220 FREEPORTMCMORAN NOTES NEW ORLEANS FREEPORTMCMORAN COPPER & GOLD INC SAID IT WILL REDEEM EARLY ITS 1186 MILLION IN LIQUID YIELD OPTION NOTES OUTSTANDING DUE 2011 THE EARLY REDEMPTION DATE IS JAN 18 WHEN THE COMPANY WILL OFFER 26522 ON EACH 1000 OF PRINCIPAL THE MINING COMPANY SAID NOTE HOLDERS AT THE COMPANY'S OPTION MAY INSTEAD EXCHANGE EACH NOTE FOR THE VALUE OF 1501 SHARES OF CLASS A COMMON STOCK OR THE VALUE OF 06015 OUNCE OF GOLD AS OF DEC 15 THOSE ALTERNATIVES WERE WORTH 34898 AND 23194 RESPECTIVELY THE COMPANY SAID PAYMENT WILL BE IN CLASS A COMMON STOCK HOLDERS WHO EXCHANGE NOTES FOR CLASS A COMMON STOCK BEFORE THE STOCK'S JAN 14 DIVIDEND PAYMENT WILL RECEIVE DIVIDENDS THE COMPANY SAID 1992 MILLION COMMON SHARES WERE OUTSTANDING AS OF SEPT 30 IT EXPECTS AN ADDITIONAL 67 MILLION SHARES WILL BE ISSUED THE NOTES ARE BEING REDEEMED EARLY TO IMPROVE THE BALANCE SHEET BY REDUCING DEBT A COMPANY SPOKESMAN SAID 9312200064 931220 MANAGER'S JOURNAL WORDS THAT MAY LATER HAUNT YOU BY MARY E REID YOU SUSPECT AN EMPLOYEE HAS BEEN STEALING AND YOU FIRE HIM THEN AS A WARNING TO OTHER EMPLOYEES YOU POST A NOTICE ON THE COMPANY BULLETIN BOARD STATING THAT THE EMPLOYEE HAS BEEN TERMINATED FOR THEFT OF COMPANY PROPERTY YOU MAY HAVE ACHIEVED YOUR GOAL TO DISCOURAGE SIMILAR BEHAVIOR BY OTHER EMPLOYEES BUT YOU'VE ALSO JUST OPENED THE DOOR TO A POTENTIAL LAWSUIT A DALLAS MAN RECENTLY WON A 155 MILLION JUDGMENT AGAINST PROCTER & GAMBLE FOR JUST SUCH AN OFFENSE DON HAGERTY SUED PROCTER & GAMBLE FOR DEFAMATION OF CHARACTER CLAIMING THAT HE HAD NEVER BEEN TRIED AND CONVICTED OF THEFT AND THAT NO PROOF EXISTED TO SUBSTANTIATE THE THEFT CLAIM HE SUCCESSFULLY ARGUED THAT HIS EXEMPLOYER WAS RESPONSIBLE FOR DESTROYING HIS REPUTATION AND CAUSING HIM TO BE TURNED DOWN FOR THE 100 JOBS HE SUBSEQUENTLY SOUGHT AN ISOLATED CASE NOT AT ALL THE NUMBER OF DEFAMATION SUITS FILED BY TERMINATED EMPLOYEES AGAINST EXEMPLOYERS IS GROWING BETWEEN JANUARY AND OCTOBER OF THIS YEAR US COURTS DECIDED ABOUT 60 DEFAMATION CASES WITH MANY OTHERS STILL PENDING AND WHILE THE 155 MILLION JUDGMENT IN THE HAGERTY CASE IS NOT REPRESENTATIVE OF THE AVERAGE PAYMENT THE COURTS HAVE DEMONSTRATED A PROPENSITY FOR AWARDING GENEROUS SUMS IN SIMILAR CASES OF ANYWHERE FROM 32000 TO 4 MILLION SMALL BUSINESSES IN PART BECAUSE THEY OFTEN LACK BUILTIN SAFEGUARDS AND WRITTEN POLICIES FOR TERMINATING EMPLOYEES ARE FREQUENT TARGETS OF DEFAMATION SUITS SUITS THAT IN MOST CASES COULD HAVE BEEN AVERTED HAD THE EMPLOYER TAKEN THE APPROPRIATE PRECAUTIONS BEFORE TERMINATING THE EMPLOYEE ASTUTE EMPLOYERS WILL AVOID DEFAMATION SUITS BY FAMILIARIZING THEMSELVES AND ANY EMPLOYEES WHO ACT IN A SUPERVISORY CAPACITY WITH THE LAW WHAT IS A DEFAMATORY STATEMENT GENERALLY A DEFAMATORY STATEMENT IS ANY STATEMENT DEEMED CAPABLE OF DAMAGING A PERSON'S REPUTATION COMMON EXAMPLES OF DEFAMATORY STATEMENTS INCLUDE A STATEMENT CRITICIZING AN EMPLOYEE'S JOB PERFORMANCE SPECIFICALLY IF IT IMPLIES INCOMPETENCE OR INABILITY TO PERFORM A STATEMENT ACCUSING AN EMPLOYEE OF A CRIME A STATEMENT IMPLYING INSUBORDINATION OR DISRUPTION OF WORKPLACE HARMONY A STATEMENT INVOLVING LACK OF INTEGRITY IN THE PERFORMANCE OF EMPLOYMENT DUTIES EG ALCOHOLISM LACK OF ETHICS DISHONESTY OR UNTRUSTWORTHINESS A FORMER EMPLOYEE SUING FOR DEFAMATION MUST PROVE THAT THE EMPLOYER PUBLISHED THE DEFAMATORY STATEMENT PUBLICATION MEANS THAT THE EMPLOYER DISCLOSED THE DEFAMATORY STATEMENT TO A THIRD PARTY EITHER DIRECTLY OR INDIRECTLY THROUGH OTHER EMPLOYEES DISCLOSURE MAY BE VERBAL OR WRITTEN DEFAMATION SUITS FREQUENTLY STEM FROM COMMENTS MADE BY AN EXEMPLOYER TO A PROSPECTIVE EMPLOYER WITHIN THE CONTEXT OF GIVING REFERENCES ONCE PUBLICATION HAS BEEN PROVED THE EMPLOYEE MUST SHOW THAT THE ALLEGEDLY DEFAMATORY STATEMENT WAS INDEED FALSE AND THAT PUBLICATION OF THE STATEMENT CAUSED INJURY TO THE EMPLOYEE'S REPUTATION IN MANY INSTANCES DAMAGE TO REPUTATION IS PROVED BY DEMONSTRATING THAT THE EMPLOYEE WAS HELD IN LOWER ESTEEM BY OTHERS WHO HEARD OR READ THE DEFAMATORY STATEMENT AS A DIRECT CONSEQUENCE OF HAVING HEARD OR READ THE STATEMENT IT IS IMPORTANT TO NOTE THAT STATEMENTS OF PURE OPINION ARE GENERALLY PROTECTED UNDER THE LAW IN SUCH CASES THE EMPLOYER MUST DEMONSTRATE THAT HE OR SHE WAS MERELY EXPRESSING AN OPINION RATHER THAN ASSERTING A FACT HOWEVER TO BE SAFE EMPLOYERS SHOULD AVOID EXPRESSING AND DISCOURAGE OTHERS FROM EXPRESSING NEGATIVE OPINIONS OF COWORKERS IN THE WORKPLACE EMPLOYERS SHOULD TAKE STEPS TO PROTECT THEMSELVES AGAINST POTENTIAL DEFAMATION SUITS WHEN TERMINATING AN EMPLOYEE THESE SUGGESTIONS MAY BE HELPFUL AVOID GIVING REFERENCES TO PROSPECTIVE EMPLOYERS EITHER VERBALLY OR IN WRITING DO SO ONLY WITH THE WRITTEN CONSENT OF THE EXEMPLOYEE AND EVEN THEN REFRAIN FROM OFFERING ANY INFORMATION OTHER THAN DATES OF EMPLOYMENT AND POSITION HELD BE ABSOLUTELY CERTAIN ABOUT THE FACTUAL CIRCUMSTANCES WHEN DISCHARGING AN EMPLOYEE THIS MAY BE ACCOMPLISHED BY CONDUCTING A COMPLETE INVESTIGATION WHEN APPROPRIATE CONSULT EMPLOYMENT AND LABOR LAW AUTHORITIES BEFORE LAUNCHING SUCH AN INVESTIGATION BE CERTAIN PERSONNEL FILES CONTAIN ONLY THAT WHICH CAN BE SUBSTANTIATED RESTRICT THE NUMBER OF PEOPLE INFORMED OF THE PARTICULARS BEHIND AN EMPLOYEE'S TERMINATION TO ONLY THOSE WHO ABSOLUTELY NEED TO KNOW THIS NOT ONLY LESSENS THE IMPACT OF AN EMPLOYEE'S DEFAMATION CLAIM BUT ALSO DEMONSTRATES GOOD FAITH AND PROFESSIONALISM DO NOT MAKE AN EXAMPLE OF A FIRED EMPLOYEE ALLOWING INFORMATION CONCERNING THE TERMINATION OF AN EMPLOYEE TO FILTER INTO THE WORKPLACE MAY INDIRECTLY DISCOURAGE BEHAVIOR SIMILAR TO THAT OF THE TERMINATED EMPLOYEE HOWEVER IF THE EXEMPLOYEE CAN PROVE THAT HIS OR HER EXEMPLOYER WAS THE SOURCE OF SUCH INFORMATION THE EXEMPLOYEE MAY HAVE GROUNDS TO FILE A DEFAMATION SUIT IF IT IS ABSOLUTELY NECESSARY TO MAKE AN EXAMPLE OF SOMEONE BE EXCEPTIONALLY CAUTIOUS IN HOW SUCH AN ANNOUNCEMENT IS PHRASED BEFORE ACCUSING AN EMPLOYEE OF SERIOUS WRONGDOING BE CERTAIN YOU KNOW ALL THE FACTS AND CAN PROVE THEM MS REID IS AN ATTORNEY AT A CLEVELAND LAW FIRM 9312200063 931220 INDONESIAN BANK PUTS UP 47 MILLION TO COMPLETE LUXURY HOTEL IN JAKARTA BY RICHARD BORSUK STAFF REPORTER OF THE WALL STREET JOURNAL JAKARTA INDONESIA STATEOWNED PT BANK DAGANG NEGARA IS PUMPING 47 MILLION INTO THE REGENT JAKARTA TO FINANCE COMPLETION OF THE PLANNED LUXURY HOTEL ON WHICH WORK WAS HALTED MORE THAN TWO YEARS AGO HONG KONGBASED REGENT INTERNATIONAL HOTELS LTD THE PROJECT MANAGER AND A UNIT OF FOUR SEASONS HOTELS & RESORTS LTD OF TORONTO IS ALSO PUTTING IN 5 MILLION AND BECOMING A MINOR SHAREHOLDER AGREEMENTS FOR REGENT'S INVESTMENT AND THE NEW FUNDING FROM INDONESIA'S BANK DAGANG NEGARA WERE SIGNED HERE FRIDAY THE BANK KNOWN AS BDN ALREADY HAS LENT HEAVILY TO THE REGENT JAKARTA OWNED BY INDONESIA'S KODEL GROUP WHICH HALTED CONSTRUCTION IN 1991 AND STOPPED SERVICING THE DEBT AFTER RUNNING SHORT OF FUNDS IN PROVIDING NEW MONEY BDN OR ITS NOMINEES SUCH AS BANKCONTROLLED PENSION FUNDS WILL BECOME SIGNIFICANT SHAREHOLDERS KODEL SAID IT WILL REMAIN THE MAJORITY OWNER BUT DECLINED TO DISCLOSE THE NEW SHAREHOLDING STRUCTURE WITH FRIDAY'S SIGNINGS REGENT AND KODEL SAID THE 400ROOM HOTEL CAN OPEN PART OF ITS FACILITIES BY THE END OF 1994 AND BE IN FULL OPERATION BY APRIL 1995 WE'RE REALLY PLEASED THIS HAS FINALLY TURNED THE CORNER WOLF HENGST REGENT INTERNATIONAL'S PRESIDENT SAID IN A TELEPHONE INTERVIEW ALTHOUGH REGENT EARLIER HAD SAID IT PREFERRED NOT TO TAKE EQUITY MR HENGST SAID THE INVESTMENT PROVED NECESSARY TO SHOW WE HAVE INTENSE INTEREST IN GETTING THIS ON TRACK AGAIN A KODEL DIRECTOR SAID UMAR HUSIN SAID EVERYBODY IS HAPPY WITH FRIDAY'S SIGNING BUT IT ISN'T CLEAR WHETHER THAT APPLIES TO BDN WHOSE EXECUTIVES DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT BDN LIKE OTHER STATE BANKS IS BELIEVED TO HAVE MANY BAD OR DOUBTFUL LOANS ON ITS BOOKS THE REGENT WHOSE UNCOMPLETED GRAY CONCRETE SHELL STANDS OUT AS AN EYESORE ON JAKARTA'S SKYLINE HAS BEEN THE MOST VISIBLE SYMBOL OF THE PROBLEM LOANS IN THE LATE 1980S BDN LED A FIVEBANK SYNDICATE THAT LENT 89 MILLION TO A KODEL SUBSIDIARY PT PERMADANI KHATULISTIWA NUSANTARA FOR THE 16STORY HOTEL TO THE SURPRISE OF SOME BANKERS AND HOTEL INDUSTRY EXECUTIVES THOSE FUNDS PLUS ANOTHER 26 MILLION INVESTED BY KODEL PROVED INSUFFICIENT TO COMPLETE THE BUILDING MR SAID SAID THAT KODEL WON'T GET A WAIVER OF THE OVERDUE INTEREST AND THAT THE SYNDICATED LOAN WON'T BE WRITTEN OFF WHILE HE CALLED THE NEW INJECTION BY BDN A LOAN MR SAID INDICATED THAT AT LEAST SOME OF IT WILL BE CONVERTED INTO EQUITY KODEL WAS SET UP IN 1979 BY A CONSORTIUM OF PRIBUMI OR INDIGENOUS INDONESIAN BUSINESSMEN ITS SENIOR EXECUTIVE FAHMI IDRIS WAS A STUDENT LEADER IN THE MID1960S WHOSE ACTIVITIES HELPED PUSH PRESIDENT SUKARNO FROM POWER AND PROPEL SUHARTO INTO THE PRESIDENCY DURING THE 1980S KODEL HAD A GOVERNMENT CONTRACT TO SUPPLY PESTICIDES TO A STATESUBSIDIZED FARM PROGRAM WHICH HAS SINCE ENDED JAKARTA BANKERS SAID THEY BELIEVE KODEL'S POLITICAL CONNECTIONS HELPED IT GET MORE FUNDING FROM BDN FOR THE HOTEL KODEL'S MR SAID SAID CONSTRUCTION OF THE HOTEL CAN RESUME IMMEDIATELY DETERIORATION OF THE EXISTING STRUCTURE WAS MINOR AND HAS BEEN DEALT WITH ALREADY HE SAID SINCE REGENT INTERNATIONAL WAS BOUGHT IN 1992 BY FOUR SEASONS MR HENGST SAID REVIVING THE JAKARTA HOTEL PROJECT HAS BEEN A PRIORITY WE'RE GOING TO OVERCOME THE ISSUE OF STAGNATION OF THE LAST TWO YEARS HE SAID ONCE PEOPLE SEE THE FINISHED HOTEL WHICH WILL STAND ABOVE ANYTHING IN THE MARKETPLACE THE ISSUE WILL DISAPPEAR 9312200062 931220 LEISURE & ARTS BOOKSHELF TIPS TO TAKE YOU INTO THE NEW YEAR BY STANLEY W ANGRIST THIS IS THE TIME OF YEAR WHEN PEOPLE WHO ARE CONSIDERING INVESTING IN MUTUAL FUNDS SHOULD BE ESPECIALLY WARY MANY FUNDS DECLARE DIVIDENDS BASED ON THE YEAR'S CAPITAL GAINS IN DECEMBER SOMEONE WHO PURCHASES SHARES IN SUCH A FUND JUST BEFORE THE CAPITALGAINS DECLARATION WILL RECEIVE THE DIVIDEND ALL RIGHT BUT IMMEDIATELY INCUR A TAX LIABILITY ON THAT DIVIDEND TO ADD INSULT TO INJURY THE NET ASSET VALUE OF THE INVESTOR'S SHARES WILL DROP BY THE AMOUNT OF THE DIVIDEND THAT IS JUST ONE OF THE ALERTS SOUNDED BY JOHN BOGLE IN BOGLE ON MUTUAL FUNDS IRWIN 320 PAGES 25 WHO TEMPERS HIS EXCELLENT ARGUMENTS ON BEHALF OF MUTUAL FUNDS WITH THOUGHTFUL CRITICISM OF THE INDUSTRY HE PRESENTS THE CRITERIA YOU SHOULD USE WHEN PICKING VARIOUS TYPES OF FUNDS AND THEN SHOWS HOW TO PUT THEM INTO A PORTFOLIO OF FUNDS APPROPRIATE TO YOUR AGE LOOK FOR INSTANCE AT THE FUND'S SIZE IGNORE ANYTHING SMALLER THAN 50 MILLION AS EXPENSES ARE TOO HIGH AGE AVOID ANYTHING THAT'S BEEN AROUND LESS THAN FIVE YEARS SINCE THERE HAS BEEN INSUFFICIENT TIME FOR MARKET TESTING THE TENURE OF ITS PORTFOLIO MANAGER WHAT DOES IT MEAN IF HE OR SHE HAS JUST LEFT AND THE COST OF OWNERSHIP ALWAYS TAKE INTO ACCOUNT FRONTEND SALES CHARGES REDEMPTION CHARGES AND ANNUAL COSTS OF RUNNING THE FUND MR BOGLE THEN SHOWS HOW TO GAUGE WHETHER A FUND'S PERFORMANCE IS DUE JUST TO THE MARKET'S PERFORMANCE POINTING OUT THAT FEW PORTFOLIO MANAGERS REGULARLY BEAT THE MARKET HE WONDERS WHETHER INVESTORS SHOULDN'T GIVE SERIOUS CONSIDERATION TO BEING CONTENT WITH A MARKET RETURN THEY CAN GET SUCH A RETURN BY BUYING LOWEXPENSE INDEX FUNDS DESIGNED TO MIMIC THE PERFORMANCE OF SAY THE S&P 500 BEATING THE MARKET IS HARD BECAUSE RETURNS ON COMMON STOCK TEND TO REGRESS TO THE AVERAGE HISTORICAL LONGTERM RATE OF RETURN SINCE 1926 THAT AVERAGE ANNUAL RETURN HAS BEEN 103 WHEN BOTH DIVIDENDS AND CAPITAL APPRECIATION ARE INCLUDED MR BOGLE IS FOUNDER AND CHAIRMAN OF THE VANGUARD GROUP THE SECOND LARGEST MUTUALFUND SPONSOR IN THE WORLD BUT HE DOESN'T SING HIS OWN PRAISES IN THIS BOOK THOUGH HE DWELLS ON THE IMPACT OF COSTS ON FUND PERFORMANCE INDEED HIS ONE MAJOR CRITICISM OF THE FUND INDUSTRY WHICH HAS GROWN FROM 500 BILLION IN 1985 TO 16 TRILLION AT THE END OF 1992 IS THE HIGH COST STRUCTURES OF MANY FUNDS HE CLAIMS MANY INVESTORS ARE NOT GETTING WHAT THEY PAY FOR AND HE IS PROBABLY RIGHT SUPPOSE YOU WOULD LIKE AN INTRODUCTION TO MUTUALFUND INVESTING WITH A LITTLE LESS DETAIL IN FUNDING YOUR FUTURE WARNER BOOKS 224 PAGES 1099 JONATHAN CLEMENTS A REPORTER FOR THIS PAPER TELLS YOU ALL YOU NEED TO KNOW TO GET STARTED UNLIKE MR BOGLE HOWEVER HE LISTS WHAT HE FEELS ARE SOME OF THE BEST FUNDS FOR YOUR INVESTMENT DOLLARS HARBOR BOND FUND AND PIMCO TOTAL RETURN FUND BOTH MANAGED BY WILLIAM GROSS ARE HIGH ON HIS LIST FOR INSTANCE BUT PIMCO REQUIRES A MINIMUM INVESTMENT OF 500000 DOES THAT SOUND TOO RICH FOR YOU HE SUGGESTS YOU CONSIDER CHARLES SCHWAB'S MUTUAL FUND MARKETPLACE WHICH YOU CAN GET INTO WITH AS LITTLE AS 1000 AND A SMALL TRANSACTION FEE MR CLEMENTS ALSO SHOWS HOW BY USING VARIOUS INDEX FUNDS WHICH HE NAMES AN INVESTOR CAN EASILY CONSTRUCT A PORTFOLIO THAT COVERS THE ENTIRE STOCK MARKET AMUSINGLY MR CLEMENTS FREQUENTLY CITES AS GOOD INVESTMENTS FUNDS FROM THE VANGUARD GROUP HISTORY UNDOUBTEDLY TEACHES LESSONS ABOUT INVESTMENT BUT IT DOES NOT SAY WHICH LESSON TO APPLY WHEN FIND VALUE ALWAYS' IS AS GOOD A PRECEPT AS ANY BUT VALUE IS SUBJECTIVE AND ITS DEFINITION IS LIABLE TO CHANGE WRITES JAMES GRANT IN THE INTRODUCTION TO A COLLECTION OF HIS COLUMNS MINDING MISTER MARKET FARRAR STRAUS & GIROUX 424 PAGES 2750 MOST INVESTORS SPEND THEIR LIVES TRYING TO DO JUST THAT AND MORE MIGHT SUCCEED BY CLOSELY READING MR GRANT'S BIWEEKLY NEWSLETTER GRANT'S INTEREST RATE OBSERVER MR GRANT HAS NOT ALWAYS BEEN CORRECT IN HIS MARKET CALLS BUT HE IS THE FIRST TO TELL YOU HOW HE MISSED THE BULL MARKET THAT BEGAN IN 1982 AND ON SEVERAL OCCASIONS INCORRECTLY CALLED ITS END IN FEBRUARY 1991 CONVINCED THAT NEITHER THE RECESSION NOR THE CREDIT CONTRACTION WAS ENDING I WROTE SEVERAL ESSAYS PROVING BEYOND THE SHADOW OF A DOUBT THAT THE STOCK MARKET COULD NOT GO UP THEY WERE FIRSTRATE PIECES MARRED ONLY BY THE FACT THAT THE MARKET DID GO UP HE WRITES WRYLY BUT MORE OFTEN MR GRANT WAS SPOTON SKEWERING OVERPRICED REAL ESTATE ENGLISH CHANNEL TUNNEL STOCK AND SHAKY NIPPON TELEGRAPH & TELEPHONE SHARES IN HIS POLISHED QUIRKY COLUMNS FEW FINANCIAL WRITERS POSSESS HIS ABILITY TO TURN A PHRASE 9312200061 931220 LEISURE & ARTS TELEVISION IT'S A TYPICAL CHRISTMAS ON THE TUBE BY ROBERT GOLDBERG WHATEVER ELSE THE HOLIDAYS MAY BRING US THE ONE ABIDING IRONY OF THE SEASON IS THAT AT A TIME OF YEAR WHEN EVERYONE'S STUCK INDOORS WITH RELATIVES TRYING TO AVOID CONVERSATION WE ALMOST NEVER GET ANY WORTHWHILE TV ALL YOU CAN COUNT ON ARE RERUNS OF IT'S A WONDERFUL LIFE AND THIS YEAR EVEN THOSE ARE BEING RATIONED INSTEAD WE'RE GIVEN A BOB HOPE CHRISTMAS A BILL CLINTON CHRISTMAS A HARRY CONNICK CHRISTMAS CUTRATE STARS HUMMING YULETIDE MELODIES OUR CHESTNUTS GET ROASTED OUR HEARTS GET WARMED AND OUR TEARS GET JERKED THIS WEEK AMERICAN PLAYHOUSE OFFERS HALLELUJAH PBS WEDNESDAY 8930 PM EST CHECK LOCAL LISTINGS TO DO ALL THREE THE STORY OF A YOUNG PREACHER THE REV OLIVER CRAWFORD DENNIS HAYSBERT WHO ARRIVES IN WASHINGTON DC TO TAKE CHARGE OF THE CITY'S MOST POWERFUL CONGREGATION HALLELUJAH IS A DRAMATIC PORTRAIT OF AN URBAN BLACK CHURCH CRAWFORD MUST DO BATTLE ON SEVERAL FRONTS AT ONCE FIGHTING TO CONVINCE THE CONGREGATION'S SNOOTY CHURCH ELDERS THAT HE BELONGS FIGHTING TO AID THE HOMELESS OF THE INNER CITY AND TO HELP A MYSTERIOUS RUNAWAY A YOUNG PREGNANT GIRL WHO SHOWS UP ON HIS DOORSTEP TWO DAYS BEFORE CHRISTMAS ADD INTO THE MIX ONE CRUSTY OLD MAN JAMES EARL JONES AND ONE CUTE LITTLE KID NICKNAMED PEANUT WITH WIDE EARNEST EYES AND HALTING SPEECH AND YOU HAVE A PRETTY GOOD SENSE OF WHAT HALLELUJAH IS ALL ABOUT THERE'S ALSO A CRUSADING VIETNAM VET WHO KEEPS LOOKING UP AT THE SKY AND ANNOUNCING THAT SOMETHING SPECIAL IS GOING TO HAPPEN BEFORE THE DRAMA IS OVER YOU CAN BE SURE SOMEONE WILL BE DELIVERING BAGS FULL OF TOYS TO NEEDY HOMELESS KIDS AND THE STIFFNECKED CHURCH ELDERS WILL TURN AROUND AND EMBRACE THEIR UNORTHODOX NEW PREACHER MR HAYSBERT PLAYS CRAWFORD WITH A LOWKEY CHARM AND AN EASY SMILE BUT THE PLOT IS THIN THE CHARACTERS COME AND GO FOR NO REASON WHATSOEVER AND THE DIALOGUE IS GARNISHED WITH LINES SUCH AS A SENSE OF HUMOR THAT'S GOOD YOU'LL NEED IT 'CAUSE THERE'S A STORM BREWING IN THE OFFICE THAT'S BIGGER THAN THE TORNADO IN THE WIZARD OF OZ' I'M AFRAID YOU'VE GOT A DATE WITH THE COMMITTEE AND THEY'RE ABOUT AS MUCH FUN AS AN AUDIT CRAWFORD GETS TO INTRODUCE HIMSELF THIS WAY I BELIEVE IN GOD SLAM DUNKS AND LIFE BEYOND THIS PLANET HE ADDS I THINK AIDS IS A MANMADE DISEASE NOW THAT'S THE SECONDSCARIEST THING ABOUT THIS DRAMA AN APPARENT ENDORSEMENT OF THE CONSPIRACY THEORY THAT THE AIDS VIRUS WAS CREATED TO ATTACK UNDESIRABLE SECTORS OF THE POPULATION THE SCARIEST THING IS THAT A QUALITYDRIVEN ORGANIZATION SUCH AS AMERICAN PLAYHOUSE WOULD AIR THIS SLIM TELEPLAY HAVING AN ALLBLACK CAST AND DEALING WITH BLACK ISSUES IS NO COMPENSATION FOR MEDIOCRE WORK QUALITY IS QUALITY AND IT HAS NOTHING TO DO WITH COLOR AS MR JONES ALONE DEMONSTRATES IN HIS CAMEO THE GHOST OF CHRISTMAS PAST BRINGS US CBS REPORTS 1968 WEDNESDAY 910 PM EST A RETROSPECTIVE OF A REMARKABLE TIME CORRESPONDENT MIKE WALLACE PRODUCER MAURICE MURAD AND EDITOR STEPHANIE PALEWSKI HAVE ASSEMBLED A VIVID MONTAGE OF YIPPIES AND HIPPIES ROCK STARS AND PRESIDENTS SOLDIERS FEMINISTS AND BLACK PANTHERS LOOKING BACK 1968 SEEMS TO BE MORE THAN A YEAR A DECADE A GENERATION WAS PACKED INTO 365 DAYS FROM THE ASSASSINATION OF MARTIN LUTHER KING JR TO THE ASSASSINATION OF ROBERT KENNEDY FROM THE TET OFFENSIVE TO THE DEMOCRATIC CONVENTION IN CHICAGO JIMI HENDRIX STEPPED ONSTAGE LYNDON JOHNSON STEPPED OFFSTAGE AND STUDENTS FROM COLUMBIA TO THE SORBONNE SEIZED THE STAGE IT'S FUN TO SEE THE OLD FOOTAGE AND HEAR THE OLD TUNES PURPLE HAZE AND TIPTOE THROUGH THE TULIPS AND THIS CBS REPORT FUNCTIONS COMMENDABLY AS A MINI HISTORY LESSON FOR THOSE WHO WERE TOO YOUNG OR TOO STONED TO REMEMBER THE EVENTS OF 1968 THERE ARE EVEN A FEW OBSERVATIONS OF INTEREST LIKE THE FEMINIST WHO RECALLS BEING TOLD BY FELLOW MEMBERS OF STUDENTS FOR A DEMOCRATIC SOCIETY YOU'RE A REAL RADICAL YOU CAN'T WASTE YOUR TIME ON THIS WOMEN'S STUFF BUT THE QUESTION REMAINS ASIDE FROM A POTPOURRI OF IMAGES AND MOMENTS WHAT DOES THIS HOUR ADD UP TO WHERE ARE THE NEW INSIGHTS THE HISTORICAL REEVALUATIONS ALL WE'RE LEFT WITH IS A BUNCH OF HEADLINES AND WE'VE SEEN THEM ALL BEFORE AT A TIME WHEN THERE ARE SO FEW NETWORK DOCUMENTARIES AND SO FEW DOLLARS TO MAKE THEM IT MAY BE UNDERSTANDABLE THAT PROGRAMS LIKE THIS GET CREATED CHEAPTOASSEMBLE PASTICHES OF FOOTAGE FROM THE NETWORK'S LIBRARY IT'S UNDERSTANDABLE BUT IT'S TOO BAD WHEN IT COMES TO THE ARTFUL REASSEMBLAGE OF OLD FILM MY CHOICE FOR THE WEEK IS THE ONEHOUR CHRISTMAS SPECIAL OF THE SERIES DREAM ON HBO TONIGHT 1011 PM EST ON THE NIGHT BEFORE CHRISTMAS TOBY THE SECRETARY BELIEVES SHE'S HAD A CELESTIAL VISITATION WHEN SHE SEES THE OUTLINE OF THE VIRGIN MARY IN THE CRACKS OF MARTIN'S BROKEN DOOR GOD'S CALLING ME BACK TO THE FLOCK SHE SAYS MAYBE HE WANTS TO USE ME FOR SOME HIGHER PURPOSE HER SISTER FROWNS WHAT LIKE TYPING HIS LETTERS MEANWHILE EDDIE GETS IN A BRAWL WITH A SANTA IN A BAR AND MARTIN GETS STUCK WITH HIS VERY PREGNANT EXWIFE JUDITH IN A BARN IN PENNSYLVANIA YOU CAN GUESS HOW EVERYTHING TURNS OUT BUT AT LEAST IT'S AMUSING ALONG THE WAY IF YOU REALLY BELIEVE IN MIRACLES HOPE FOR BETTER SHOWS NEXT YEAR THEN AGAIN MARLA MAPLES AND DONALD TRUMP ARE GETTING MARRIED TODAY SO ANYTHING'S POSSIBLE 9312200060 931220 RETAILING RETAILERS SAY SALES ARE GOOD COULD BE BETTER A WALL STREET JOURNAL NEWS ROUNDUP IN THE FINAL LAP OF THE CHRISTMAS RETAIL SEASON STORES REVVED UP PROMOTIONS TO COMBAT WHAT MANY DESCRIBED AS A LULL BEFORE THE SALES SURGE THEY HOPE WILL MATERIALIZE THIS WEEK ON BALANCE THIS WILL BE A LATER CHRISTMAS SAID CLARK A JOHNSON CHAIRMAN OF HOME FURNISHINGS RETAILER PIER 1 IMPORTS INC WHERE STORES OPEN AT LEAST A YEAR HAVE HAD SALES GAINS IN THE HIGH SINGLE DIGITS SINCE THANKSGIVING MOMENTUM FELL OFF LAST WEEK HE SAID FROM THE TWO PREVIOUS WEEKS IN A SEASON WHERE SALES HAVE GYRATED FROM DAY TO DAY AND WEEK TO WEEK SALES ARE RUNNING AHEAD OF LAST YEAR BUT AREN'T AS ROBUST AS SOME HAD HOPED ANALYSTS AND RETAIL EXPERTS ARE STICKING WITH ESTIMATES OF A 4 TO 5 SALES GAIN FROM THE 1992 SEASON BUT STORES SPECIALIZING IN APPAREL CONTINUE TO LAG BEHIND THE REST OF THE INDUSTRY WHILE THOSE THAT SELL BIGTICKET ITEMS FOR THE HOME ARE STILL SHOWING THE BIGGEST GAINS LAST WEEK DESPITE STEEP MARKDOWNS AND HEAVY NEWSPAPER ADVERTISING THERE WERE FEW SIGNS OF ANY LIFT IN APPAREL SALES IN CONTRAST TO BRISKSELLING ELECTRONICS GOODS THE APPAREL BUSINESS ISN'T BOOMING SAYS CARL CHUDNOFSKY SENIOR VICE PRESIDENT OF NEW ENGLAND DEVELOPMENT WHICH OPERATES 14 MALLS WITH 2000 STORES IN NEW ENGLAND MALL FASHION CHAINS AND DEPARTMENT STORES ARE APT TO BE HURT THE MOST ACCORDING TO NEW YORK RETAIL ANALYST WALTER LEVY BECAUSE MORE THAN 40 OF THEIR REVENUE COMES FROM WOMEN'S AND MEN'S APPAREL AT WOODFIELD MALL OUTSIDE CHICAGO THE LIMITED STORE OFFERED PUNCH AND COOKIES TO PULL IN CUSTOMERS WE'RE ALL ON COMMISSION HERE A FRANTIC SALES CLERK DECLARED AS SHE TRIED TO INTEREST A SHOPPER IN A RED SWEATER EVERYONE'S TRYING TO MAKE QUOTA STORES HAVING CONDITIONED SHOPPERS TO HOLD OUT FOR LASTMINUTE BARGAINS IN RECENT YEARS ARE COUNTING ON A BOOM IN THE NEXT FEW DAYS WALTER LOEB A NEW YORK RETAIL ANALYST SAID JUST 25 OF THE 200 SHOPPERS HE SURVEYED OVER THE WEEKEND SAID THEY WERE FINISHED CHRISTMAS SHOPPING CAROL CONRAD A 29YEAROLD ADVERTISING MANAGER IN CHICAGO BOUGHT SEVERAL 28 COSMETIC KITS FOR 1499 ON SATURDAY AT MARSHALL FIELD'S I CAN'T BELIEVE THE DEALS YOU CAN GET IF YOU WAIT LONG ENOUGH SHE SAID STILL ONE SIGN OF CONSUMER OPTIMISM IS THE BIG JUMP IN CREDITCARD PURCHASING RETAIL SPENDING ON VISA CARDS ROSE 28 FROM A YEAR AGO FOR THE PERIOD FROM THANKSGIVING THROUGH FRIDAY ACCORDING TO VISA'S HOLIDAY SPENDTRAK AND THE VOLUME OF RETAIL SALES CLEARED THROUGH THE MASTERCARD NETWORK ROSE ABOUT 20 FROM THE SAME PERIOD ACCORDING TO MASTERCARD'S SMART MONEY WATCH BUT VISA ATTRIBUTED THE GAIN PARTLY TO INCREASED USE OF THE CARDS SO STORES AREN'T SEEING SUCH BIG GAINS IN THEIR RECEIPTS WITH CONSUMERS SPENDING CAUTIOUSLY ALL YEAR RETAILERS KEPT HOLIDAY INVENTORIES LEAN EVEN SO LAST WEEK THEY CRANKED UP THEIR PROMOTIONS AND MARKED DOWN MERCHANDISE YOUNKERS INC A DEPARTMENTSTORE CHAIN BASED IN DES MOINES REPORTED SAMESTORE SALES THROUGH SATURDAY IN THE MIDSINGLE DIGITS BUT IT'S ALL VERY PROMOTIONAL MUCH MORE SO THAN LAST YEAR SAID ALAN RAXTER THE CHIEF FINANCIAL OFFICER PRICE SEEMS TO BE THE MOST IMPORTANT FACTOR AND IN RECESSIONBATTERED CALIFORNIA PRICE CUTS AND OTHER PROMOTIONS REACHED NEW HIGHS THIS WEEKEND A ONEDAY SALE AT GOTTSCHALK'S 26STORE CHAIN RESULTED IN ITS BEST DAY SINCE THANKSGIVING OFFICIALS SAID STILL GOTTSCHALK'S IS ONLY 2 AHEAD OF LAST SEASON'S SALES THE BROADWAY DEPARTMENT STORES ON THE WEST COAST LURED APPAREL SHOPPERS WITH A THREEHOUR SALE ON SATURDAY WITH PRICES ON CERTAIN SILK BLOUSES AND MEN'S SLACKS CUT IN HALF BROADWAY WAS AMONG THE RETAILERS OFFERING 10 GIFT CERTIFICATES FOR EVERY 100 PURCHASE WHILE THE NATION'S LARGEST RETAILER WALMART STORES INC WON'T COMMENT ABOUT HOLIDAY SALES INTERVIEWS WITH EMPLOYEES INDICATE THAT DISCOUNTING OF SEASONAL GOODS IN PARTICULAR HAS BEEN STEPPED UP AT ITS SAM'S CLUB WAREHOUSE DIVISION THE MEMBERSHIPONLY CLUBS ALSO HAVE INVITED DISCOVER CREDIT CARD HOLDERS TO SAM'S DURING THE WEEK BEFORE CHRISTMAS THE VOLUME OF MASTERCARD CLOTHINGSTORE SALES WAS FLAT COMPARED WITH LAST YEAR VISA USA SAID THE LARGEST INCREASES LAST WEEK WERE IN MAILORDER DISCOUNT AND ELECTRONICS STORES THE VISA DATA SHOWS PARTICULARLY STRONG GAINS FOR DISCOUNT STORES WHERE THE AVERAGE TICKET INCREASED TO 63 UP 97 FROM A YEAR EARLIER AT A TARGET DISCOUNT STORE IN SUBURBAN CHICAGO SATURDAY JOE PORTUESE EXPLAINED WHY HE DOES MORE SHOPPING AT DISCOUNT STORES THEY HAVE MORE NAME BRANDS THAN THEY USED TO AND IT'S THE SAME STUFF AS IN DEPARTMENT STORES HE SAID MANY APPAREL CHAINS ARE STRUGGLING WHILE NEW YORK'S GALERIES LAFAYETTE HAS SEEN A 43 JUMP IN SALES OF GIFT ITEMS ITS SLUGGISH APPAREL BUSINESS IS PULLING DOWN OVERALL SALES THROUGH SATURDAY SALES WERE UP ONLY 3 FROM A YEAR EARLIER WE HAD SOME FLAT DAYS AND IT WAS A SLOWER WEEK THAN WE HOPED FOR SAID GEORGE J GRAF PRESIDENT OF GALERIES LAFAYETTE USA APPAREL THE KIND YOU BUY FOR YOURSELF PEOPLE JUST AREN'T BUYING THOUGH HEAVILY CONCENTRATED IN APPAREL SAKS FIFTH AVENUE'S SALES ARE UP 9 THROUGH SATURDAY PHILIP MILLER SAKS CHAIRMAN EXPECTS TO FINISH THE SEASON UP 6 RIDING SHOPPERS' INTEREST THIS SEASON IN GOODS FOR THE HOME LOWE'S COS A 300STORE HOMEIMPROVEMENT CHAIN SAID SAMESTORE SALES GAINS THROUGH THE WEEKEND ARE EXPECTED TO BE ABOUT 20 CLOSE TO THE LEVELS IT HAS REPORTED SINCE THANKSGIVING CHICAGOBASED SEARS ROEBUCK & CO HAD ITS BEST SHOPPING DAY THIS SEASON ON SATURDAY THE BATTLE CRY OF THE CONSUMER IS CLEARLY HOME AND PRACTICALITY SAID JOHN COSTELLO SENIOR EXECUTIVE VICE PRESIDENT OF MARKETING SEARS' SAMESTORE SALES INCREASES OVER THE WEEKEND SHOULD BE IN THE HIGH SINGLE DIGITS HE SAID INEXPENSIVE NOVELTY GIFTS ALONG WITH THE PURELY PRACTICAL ARE DRIVING SALES LOONEY TUNES NECKTIES DOC MARTENS BOOTS AND SAKS FIFTH AVENUE DECORATIVE SNOW GLOBES ARE ALL TOP SELLERS PETER SCHAEFFER PARTNER OF JOHNSON REDBOOK SERVICES WHICH TRACKS RETAIL STOCKS SAID THE APPAREL THAT IS SELLING IS MOSTLY INEXPENSIVE BASICS LIKE FLANNELS AND CASHMERE SWEATERS WHERE PRICES HAVE FALLEN BELOW 100 THE STORES BOUGHT MORE THAN THEY'VE EVER BOUGHT BEFORE BUT IN SOME CASES IT WASN'T ENOUGH SAKS IS RUNNING SHORT ON A 580 CASHMERE ROBE AT DEPARTMENTSTORE CHAIN RH MACY & CO DECORATIVE HOME GOODS HAVE BEEN MOVING WELL AS HAVE FINE JEWELRY FRAGRANCES AND MEN'S ACCESSORIES HOUSEWARES LIKE ESPRESSO MACHINES AND BREAD MAKERS ARE LEADING ITEMS AT THE MIDWEST'S YOUNKERS CHAIN HOWEVER TIMEWORN CHRISTMAS GIFT ITEMS LIKE GLOVES AND SCARVES ARE MOVING SLOWLY AT DISCOUNTER VENTURE STORES INC IN THE MIDWEST UNUSUALLY WARM WEATHER IS THE CULPRIT BY THIS TIME OF THE YEAR PEOPLE HAVE USUALLY LOST ONE PAIR OF GLOVES AND HAVE ALREADY BOUGHT ANOTHER SAID CHAIRMAN JULIAN SEEHERMAN NOW WE CAN'T EVEN GET THE FIRST PAIR ON PEOPLE 9312200059 931220 MARKETING & MEDIA ADVERTISING AT&T TRIES HOMESPUN APPROACH IN PITCH FROM FCB/LEBER KATZ BY KEVIN GOLDMAN AFTER A DISASTROUS FLING WITH SURREAL HIGHTECH ADVERTISING AMERICAN TELEPHONE & TELEGRAPH IS TRYING TO RECONNECT WITH ITS CUSTOMERS IN A HOMESPUN CAMPAIGN FROM ITS NEW LEAD AGENCY FCB/LEBER KATZ PARTNERS AT&T'S TELEVISION COMMERCIALS WHICH BROKE THIS WEEKEND ON ALL THE MAJOR BROADCAST NETWORKS EXCEPT FOX AIM TO THWART RIVAL MCI COMMUNICATIONS FROM FURTHER ENCROACHING ON ITS DOMINANCE OF THE 60 BILLION CONSUMER LONGDISTANCE MARKET THE CAMPAIGNCOMPLETED IN LESS THAN FOUR WEEKS IS THE FIRST TO BEAR THE IMPRINT OF JOSEPH P NACCHIO THE FORCEFUL NEW PRESIDENT OF AT&T'S CONSUMER BUSINESS AND A LEADING ARCHITECT OF THE SOCALLED NEW AT&T BATHED IN HEARTTUGGING SENTIMENT AND WARM HUMOR THE SPOTS UNDERSCORE WHAT AT&T BELIEVES IS ITS CLOSE EMOTIONAL LINK TO ITS CUSTOMERS THE PITCHES INCLUDE CORPORATE IMAGE ADS PROMOTIONS FOR A NEW DISCOUNT INCENTIVE AND ANNOUNCEMENTS SPOTLIGHTING A NEW VOICE TECHNOLOGY WHICH MR NACCHIO IS HURRYING TO MAKE AVAILABLE TO DRIVE HOME THE CLARITY OF SOUND ONE AD SHOWS A PREGNANT WOMAN HOLDING A RECEIVER TO HER BELLY SO HER HUSBAND CAN TALK TO THEIR UNBORN SON MOST OF THE ADS CLOSE WITH THE TELEPHONE GIANT'S NEW THEME SONG THE REAL YOU COMING THROUGH SUNG BY LISSY NEWMAN DAUGHTER OF ACTOR PAUL NEWMAN MR NEWMAN'S WIFE THE ACTRESS JOANNE WOODWARD DOES THE VOICEOVER IN ONE SPOT TO COUNTER MCI'S HIGHLY SUCCESSFUL FRIENDS & FAMILY IN WHICH CUSTOMERS RECEIVED DISCOUNTS IN RETURN FOR SETTING UP A CIRCLE OF CALLING PARTNERS AT&T'S NEW ADS INTRODUCE TRUE REWARDS THE PLAN ALLOWS CUSTOMERS TO EARN POINTS TOWARD FREQUENTFLIER MILES ON DELTA AIR LINES UNITED AIRLINES AND USAIR OR TO REDEEM POINTS FOR CASH OR FOR FREE MINUTES ON SUBSEQUENT CALLS AT&T HAD NO CHOICE BUT TO MOUNT AN AGGRESSIVE CAMPAIGN IT HAS BEEN OUTMARKETED BY MCI WITH SLICK WELLPRODUCED AND EASILY UNDERSTOOD COMMERCIALS FOR FRIENDS & FAMILY AT&T'S EARLIER ATTEMPT AT A COUNTERPUNCH MISSED CONSUMERS HAD TROUBLE FATHOMING ITS SHORTLIVED I PLAN IT WAS MEANT TO ENABLE CUSTOMERS TO DESIGN THEIR OWN CALLING PLAN THOUGH AT&T STILL HAS A COMMANDING 60 TO 65 OF THE LONGDISTANCE MARKET MCI CURRENTLY WITH A 17 SHARE IS GAINING GROUND AT THE RATE OF MORE THAN 1 PERCENTAGE POINT A YEAR IN A BUSINESS LIKE THIS YOU HAVE TO DEFINE THE ENEMY SAYS DANIEL L CLARK VICE PRESIDENT OF AT&T'S CONSUMER LONGDISTANCE DIVISION MCI IS THE FOCAL POINT FOR US JUST AS WE HAVE BEEN THE FOCAL POINT FOR THEM THE TWO RIVALS HAVE BEEN SNIPING AT EACH OTHER IN THEIR ADVERTISING FOR MORE THAN A YEAR BUT AT&T'S TRUE REWARDS PROGRAM IS STILL PRETTY COMPLICATED CUSTOMERS EARN ONE POINT FOR EVERY DOLLAR THEY SPEND PROVIDED THEIR MONTHLY AT&T LONGDISTANCE BILL IS AT LEAST 25 ONE HUNDRED POINTS EARN 500 FREQUENTFLIER MILES AND POINTS ARE TRANSFERABLE TO FAMILY MEMBERS WILL FREQUENTFLIER MILES BE ENOUGH TO COAX CALLERS TO STICK WITH AT&T OR TO DROP MCI AIRLINE TRAVELERS ARE NOTORIOUSLY LAX ABOUT CASHING IN FREQUENTFLIER MILES OFTEN LETTING THEM LAPSE AT&T'S NEW PLAN MAY STRIKE SUCH CUSTOMERS AS JUST ANOTHER CUMBERSOME NUISANCE AT&T REPLIES THAT CUSTOMERS WILL GET STREAMLINED QUARTERLY STATEMENTS LISTING THEIR ACCUMULATED POINTS THESE CAN BE REDEEMED BY MAILING IN A COUPON AT THE BOTTOM OF THE STATEMENT OR BY ORDERING THROUGH A TOLLFREE 800 NUMBER THE NEW WARM AND FUZZY CAMPAIGN REPRESENTS A STRATEGIC RETURN TO AT&T'S REACH OUT AND TOUCH SOMEONE ROOTS AND AWAY FROM SNIDE DIGS AT THE COMPETITION HOWEVER AYER THE AGENCY THAT CREATED THE RESPECTED REACH OUT ADS WAS REPLACED NOV 19 BY THE NEW YORK OFFICE OF FOOTE CONE & BELDING COMMUNICATIONS ANNUAL BILLINGS FOR THE CONSUMER LONGDISTANCE ACCOUNT ARE ESTIMATED AT 200 MILLION AYER ALONG WITH ANOTHER AT&T AGENCY YOUNG & RUBICAM WILL RETAIN SOME AT&T BUSINESS ALTHOUGH FCB/LEBER KATZ NOW IS CALLING THE SHOTS WHEN FCB/LEBER KATZ WON THE ACCOUNT AT&T'S MR NACCHIO INDICATED HE'D LIKE A NEW CAMPAIGN FINISHED IN TIME TO AIR ON THE SUPER BOWL IN LATE JANUARY BUT MR NACCHIO WHO IS PUSHING INTERNALLY FOR A FASTER MARKETING RESPONSE SOON MOVED UP THE DEADLINE TO THIS PAST WEEKEND THE MARATHON EFFORT HAS PRODUCED A SERIES OF SPOTS DESIGNED TO DAMPEN VIEWERS' HANDKERCHIEFS IN A SINGLE 60SECOND CORPORATE IMAGE SPOT THERE ARE SHOTS OF A MAN AND WOMAN HOISTING UP A BABY TWO REUNITED WOMAN HUGGING AND A FLOOD VICTIM CALLING FOR HELP ON A PORTABLE PHONE IN THE BACKGROUND ARE THE STRAINS OF AT&T'S ANTHEM I KNOW WHAT YOU'RE FEELING THOUGH YOU ARE FAR APART I HAVE YOU IN MY HEART MEANWHILE PRINTED MESSAGES CRAWL ACROSS THE SCREEN IT'S A VOICE SO CLOSE YOU CAN FEEL IT IT'S A VOICE THAT RESPONDS WHEN YOU NEED HELP IT'S A VOICE NOW AND ALWAYS HUMOR AND RAPIDFIRE EDITING HELP TRUMPET THE TRUE REWARDS PROGRAM AMONG THE BEST A SCENARIO SHOWING A SON CALLING HIS FATHER TO ANNOUNCE THAT HE HAS JUST GOTTEN A TATTOO STILL OTHER ADS PROMOTE A NEW AT&T TECHNOLOGY THAT ENHANCES THE CLARITY OF SOUND TRANSMISSION A BOOST IN QUALITY LIKENED TO THE DIFFERENCE BETWEEN A COMPACT DISK AND A RECORD TRUE VOICE IS AT&T'S ANSWER TO RIVAL SPRINT WHICH ADVERTISES ITS SOUND CLARITY WITH THE IMAGE OF A PIN DROPPING TRUE VOICE WAS ORIGINALLY SCHEDULED FOR NATIONAL ROLLOUT IN 1995 BUT UNDER THE HUSTLING MR NACCHIO IT WILL BE AUTOMATICALLY AVAILABLE TO ALL AT&T CUSTOMERS BY APRIL AS FOR THE TURNABOUT IN THE TONE OF AT&T'S ADVERTISING FCB/LEBER KATZ'S EXECUTIVE CREATIVE DIRECTOR TED LITTLEFORD SAYS AT&T HAS DEEP EMOTIONAL ROOTS TO ITS CUSTOMERS THE CUSTOMER WANTED TO BE RECONNECTED TO THE COMPANY THAT EMOTIONAL BOND WAS SEVERED WHEN AT&T STUMBLED WITH ITS I PLAN CAMPAIGN A MUDDY MESSAGE MADE EVEN MORE COMPLICATED BY OBSCURE IMAGERY SUCH AS ILLUMINATED EARS AND HUMAN HEADS FILLED WITH CLOUDS THE I STOOD FOR INDIVIDUAL BUT FEW CUSTOMERS FIGURED THAT OUT THE NEW CAMPAIGN THAT WAS RUSHED ON THE AIR IS LIKELY TO BE FOLLOWED BY STILL MORE COMMERCIALS IN TIME FOR SUPER BOWL SUNDAY AT&T AND ITS NEW LEAD AGENCY INDICATE THIS IS THE NEW AT&T SAYS A CONFIDENT AND ARTICULATE MR CLARK AT&T VICE PRESIDENT WE'RE FAST NIMBLE AND EXECUTIONALLY FLAWLESS JOHN J KELLER CONTRIBUTED TO THIS ARTICLE BLOCKBUSTER ENTERTAINMENT THE FORT LAUDERDALE FLA VIDEORENTAL AND MUSIC RETAILER ENDED A 10MONTH AGENCY REVIEW BY MOVING ITS BIG ACCOUNT FROM MIDSIZE BERNSTEINREIN ADVERTISING TO THE ST LOUIS OFFICE OF D'ARCY MASIUS BENTON & BOWLES BLOCKBUSTER WILL SPEND A WHOPPING 100 MILLION ON ADVERTISING NEXT YEAR SAID JIM HILMER BLOCKBUSTER SENIOR VICE PRESIDENT AND CHIEF MARKETING OFFICER AN ESTIMATED 85 MILLION IS EXPECTED TO GO TO TRADITIONAL MEDIA ADVERTISING THAT REPRESENTS A SHARP INCREASE OVER LAST YEAR'S TOTAL SPENDING OF ABOUT 75 MILLION HE SAID WILLIAM MELZER MANAGING DIRECTOR OF DMB&B'S ST LOUIS OFFICE SAID THE AGENCY PLANS TO HIRE 40 TO 50 PEOPLE TO SERVICE THE ACCOUNT BERNSTEINREIN ADVERTISING KANSAS CITY MO HAD BEEN THE MAIN AGENCY FOR BLOCKBUSTER SINCE 1987 WHEN IT WAS JUST A 38STORE VIDEORENTAL CHAIN THE SHOP WILL CONTINUE WORKING ON SPECIAL PROJECTS FOR BLOCKBUSTER MR HILMER SAID AGENCY CHAIRMAN ROBERT BERNSTEIN SAID HE WOULD CLOSE BERNSTEINREIN'S FORT LAUDERDALE OFFICE SOME OF WHOSE 24 EMPLOYEES WOULD BE OFFERED JOBS ELSEWHERE AT THE AGENCY NEW COMMERCIALS FROM DMB&B FOR BLOCKBUSTER'S MUSIC OPERATIONS ARE PLANNED FOR THE FIRSTQUARTER NEXT YEAR MR HILMER SAID BERNSTEINREIN'S CURRENT CAMPAIGN FOR BLOCKBUSTER VIDEO WILL REMAIN ON THE AIR HE SAID THAT BLOCKBUSTER GAVE DMB&B SO MUCH OF ITS BUSINESS CAME AS A SURPRISE BERNSTEINREIN CHAIRMAN ROBERT BERNSTEIN IS A BLOCKBUSTER VIDEO FRANCHISEE BLOCKBUSTER HAD SET OUT IN FEBRUARY TO FIND AN AGENCY FOR ITS MUSIC BUSINESS BUT IT SOON DECIDED TO CONSOLIDATE ALL OF ITS ADS AT ONE AGENCY WITH GLOBAL CAPABILITIES ALSO CONTENDING WAS LEO BURNETT CHICAGO BLOCKBUSTER HAS ABOUT 3200 VIDEORENTAL STORES AND IS INVESTING HEAVILY IN MUSIC RETAILING THE COMPANY PLANS TO OPEN 300 BLOCKBUSTER MUSIC PLUS STORES NEXT YEAR FEATURING LISTENING STATIONS AT WHICH CUSTOMERS CAN SAMPLE POTENTIAL PURCHASES WE PLAN TO BE THE PREMIER RETAILER IN MUSIC AS WE ARE IN VIDEO MR HILMER SAID ACCOUNT THE HAWAII VISITORS BUREAU DISMISSED MILICI VALENTI THE HONOLULU OFFICE OF OMNICOM GROUP'S DDB NEEDHAM FROM ITS ESTIMATED 10 MILLION AD ACCOUNT AND AWARDED IT TO THE LOS ANGELES OFFICE OF WPP GROUP'S OGILVY & MATHER MCCANN INTERPUBLIC GROUP'S MCCANNERICKSON HAS CREATED AN INTERACTIVEADVERTISING UNIT TO COORDINATE PROJECTS UNDER WAY IN ITS US AND CANADIAN OPERATIONS RON PULLEM DIRECTOR OF INTERNATIONAL MEDIA WAS NAMED SENIOR VICE PRESIDENT AND GIVEN THE ADDITIONAL TITLE OF MANAGING DIRECTOR OF THE NEW UNIT 9312200058 931220 BUSINESS BRIEF PHILIPS ELECTRONICS NV BATTERY FACTORY IN POLAND IS PLANNED WITH MATSUSHITA PHILIPS ELECTRONICS NV OF THE NETHERLANDS SAID IN AMSTERDAM THAT IT AND MATSUSHITA ELECTRIC INDUSTRIAL CO OF JAPAN ARE PLANNING TO SET UP A BATTERY FACTORY IN POLAND WITH EACH HOLDING 50 OF THE VENTURE A SPOKESMAN FOR PHILIPS SAID FINANCIAL DETAILS WEREN'T AVAILABLE WE'RE NOW IN TALKS WITH THE POLISH GOVERNMENT AND PENDING THOSE NEGOTIATIONS WE DON'T HAVE ANY CONCRETE FACTS HE SAID THE PLANT WHICH IS DUE TO START OPERATIONS IN 1995 WILL MAKE CARBONZINC SOCALLED GREEN BATTERIES THAT ARE MORE ENVIRONMENTALLY FRIENDLY THAN TRADITIONAL BATTERIES PHILIPS SAID PHILIPS AND MATSUSHITA HAVE BEEN OPERATING A BATTERYMAKING JOINT VENTURE SINCE 1970 IN TESSENDERLOO BELGIUM PHILIPS ALREADY HAS OPERATIONS IN POLAND CONSISTING OF ITS PROFITABLE LIGHTBULB FACTORIES EMPLOYING 3000 PEOPLE 9312200057 931220 WHO'S NEWS MADISON GAS & ELECTRIC CO MADISON GAS & ELECTRIC CO MADISON WIS DAVID C MEBANE 60 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER MR MEBANE CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER OF THE UTILITY SUCCEEDS FRANK C VONDRASEK 65 WHO IS RETIRING AS CEO BUT WILL REMAIN A DIRECTOR AND CHAIRMAN 9312200056 931220 CREDIT MARKETS WARRANTS TIED TO JUNK COME BACK TOOL OF '80S BECOMES BIG HIT WITH FUNDS HUNTING FOR RETURNS BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JUNK BONDS WITH WARRANTS ATTACHED A POPULAR FINANCING TOOL OF THE 1980S ARE RESURGING AND RETURNHUNGRY JUNKBOND MUTUAL FUNDS ARE SNATCHING THEM UP CRITICS SAY THE FUNDS ARE SO FOND OF THE WARRANTS WHICH GIVE BONDHOLDERS THE CHANCE TO BUY STOCK IN THE ISSUER THAT THEY ARE FORGETTING ABOUT CREDIT QUALITY SOME OF THESE DEALS CAN BE VERY ATTRACTIVE NOTES THOMAS SOVIERO DIRECTOR OF HIGHYIELD RESEARCH AT FIDELITY INVESTMENTS THE BOSTON MUTUALFUND GIANT BUT CLEARLY THEY ARE OFTEN AN INDUCEMENT TO BUY A DEAL YOU MIGHT NOT BUY IN ITS OWN RIGHT IN ITS HEYDAY THE LATE DREXEL BURNHAM LAMBERT INC POPULARIZED JUNKBOND OFFERINGS WITH WARRANTS FOR HARDTOSELL ISSUES AS THE JUNKBOND MARKET TOOK OFF THE FIRM DISTRIBUTED THE LUCRATIVE WARRANTS TO FAVORED CLIENTS AND EMPLOYEES NOWADAYS THE WARRANTS WIND UP INSTEAD WITH JUNKBOND MUTUAL FUNDS WHICH AVID TO CONTINUE THEIR 167 YEARTODATE RETURN ARE SCURRYING TO BUY DEALS OFFERING AN EQUITY STAKE IT'S A STRATEGY MORE FAMILIAR TO VENTURE CAPITALISTS WHO FINANCE HIGHLY SPECULATIVE ENTERPRISES THAN TO BONDHOLDERS CONCERNED ABOUT GETTING THEIR MONEY BACK IN THE PAST TWO MONTHS NEARLY 20 VENTURES NOTABLY CASINO COMPANIES HAVE SUCCEEDED IN RAISING 1 BILLION FROM THE JUNKBOND MARKET BY OFFERING INVESTORS A STAKE IN PROJECTS THAT WON'T OPEN THEIR DOORS FOR MONTHS TO COME AND BANKERS EXPECT THE MARKET TO CONTINUE SNAPPING UP SUCH DEALS SO FAR THE BIGGEST BENEFICIARIES ARE CAPITALHUNGRY CASINO COMPANIES SINCE SEPTEMBER NEARLY A DOZEN HAVE OFFERED WARRANTS WITH THEIR DEBT MANY ARE SINGLEPROPERTY CASINO VENTURES INVESTORS LIKE THE FACT THAT CASINOS ARE LIKELY TO START GENERATING CASH QUICKLY THE FUNDS' APPETITE HAS BEEN WHETTED BY THE SUCCESS OF EARLIER CASINO OFFERINGS HOLLYWOOD CASINO CORP OF DALLAS FOR EXAMPLE RAISED 90 MILLION IN UNITS CONSISTING OF 14 SENIOR SECURED NOTES WITH WARRANTS BEFORE ITS MAY INITIAL PUBLIC OFFERING AS A RESULT OF THE STOCK OFFERING THOSE UNITS HAVE MORE THAN DOUBLED IN VALUE FOUR MONTHS AFTER GRAND CASINOS INC MINNEAPOLIS ISSUED UNITS WITH WARRANTS FOR 13 OF ITS STOCK THE STOCK DOUBLED INVESTORS RECEIVED A 28FOLD RETURN ON THE WARRANT PORTION OF THE UNITS MANY OF THE DEALS COMING TO MARKET WITH WARRANTS COULDN'T FIND A HOME UNLESS THE ISSUER OFFERED A STAKE IN THE COMPANY DESPITE OFTEN STRATOSPHERIC INTEREST RATES BUT EVEN DEBT ISSUERS ARE SURPRISED BY SOME FUNDS' CRAVING CHRISTOPHER HEMMETER A ONETIME HOTEL OWNER TURNED CASINO OPERATOR OWNS TWO SMALL CASINOS IN COLORADO THAT HAVE JUST RECENTLY BECOME PROFITABLE YET HEMMETER ENTERPRISES INC RAISED 140 MILLION MORE THAN HE ANTICIPATED IN JUST THREE WEEKS BY OFFERING INVESTORS A PROSPECTIVE 12 EQUITY STAKE BUNDLED WITH 115 BONDS IN A PRIVATE OFFERING THREEQUARTERS OF THE PRICE TALK ON OUR DEAL FOCUSED ON THE WARRANTS SAYS A COMPANY OFFICIAL INVOLVED IN THE ISSUE WARRANTS RESEMBLE OPTIONS BUT ARE LONGERLASTING A TYPICAL WARRANT WOULD GIVE THE HOLDER THE CHANCE TO BUY STOCK IN A COMPANY AT A PRICE WELL ABOVE WHERE THE STOCK CURRENTLY TRADES AT ANY TIME DURING A THREEYEAR PERIOD THE JUNKBOND FUND WOULDN'T BUY THE STOCK IT WOULD SELL THE WARRANT INSTEAD BUT IT MIGHT HOPE TO DO BETTER WITH WARRANTS THAN IN BONDS ALONE SUCH VENTURE FINANCING IS STILL ONLY A SMALL CHUNK OF THE MONEY RAISED WITH JUNK BONDS BUT INVESTORS' APPETITE FOR DEBTWITHWARRANTS HAS GROWN SO LARGE THAT ABOUT ONEFOURTH OF THE JUNK BOND DEALS BROUGHT TO MARKET IN THE PAST TWO MONTHS HAVE INCLUDED WARRANTS IN SOME CASES FOR AS MUCH AS 20 OF THE ISSUER'S STOCK THIS IS THE MOST IMPORTANT FINANCING DEVELOPMENT FOR THE CASINO INDUSTRY SAYS RICHARD BYRNE MERRILL LYNCH & CO'S HIGHYIELD CASINO ANALYST IN A RECENT REPORT A CASINO THAT COSTS 50 MILLION TO BUILD CAN SHOW ANNUAL CASH FLOW OF 20 MILLION WITHIN A YEAR ACCORDING TO A BANKER AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP WHICH HAS BEEN A MAJOR UNDERWRITER OF CASINO COMPANIES IF THE COMPANY BORROWS 30 MILLION AND RAISES THE REST WITH EQUITY THE CASH RETURN ON THE EQUITY INVESTMENT SOARS TO 100 NO WONDER MUTUAL FUNDS ARE SNAPPING UP THESE DEBTWITHWARRANT DEALS BIG BUYERS INCLUDE T ROWE PRICE HIGH YIELD PUTNAM HIGH YIELD AND DELAWARE DELCHESTER FUNDS THAT TYPICALLY BUY LARGE CHUNKS OF A DEAL IN ORDER TO DICTATE TERMS MR BYRNE OF MERRILL LYNCH NOTES THAT THE FUNDS LIKE WARRANTS BECAUSE MANY AREN'T ALLOWED TO OWN EQUITY DIRECTLY AT THE SAME TIME WARRANTS OPEN THE DOOR FOR CAPITALHUNGRY COMPANIES THAT MIGHT BE SHUT OUT BECAUSE THEY HAVE NO OPERATIONS FOR ISSUERS WARRANTS ENSURE BONDHOLDERS WILL STAY INVOLVED WE NEED TO BE ABLE TO REFINANCE SAYS ONE CASINO OPERATOR SO WE HAVE TO BE ABLE TO KEEP THE CAPITAL MARKETS HAPPY BUT SOME MANAGERS BELIEVE THAT WARRANTS ARE DISTRACTING THE FUNDS FROM CONSIDERING THE RISKS YOUR'RE PUTTING UP 90 OF THE FINANCING AND GETTING ONLY 5 OR 10 OF THE EQUITY SAYS A MUTUALFUND MANAGER WHO SHUNS THESE DEALS I HAVE A HARD TIME WITH THAT RISKREWARD RATIO YET SOME INVESTORS ARE SO SURE THAT THESE PROPERTIES WILL BE WINNERS THAT THEY ARE TAKING WARRANTS IN COMPANIES THAT ARE STILL PRIVATE PRIVATE WARRANTS CAN HAVE SUBSTANTIALLY GREATER VALUE THAN PUBLICLY TRADED WARRANTS NOTES MR BYRNE'S REPORT BUT THEY TEND TO BE OFFERED BY LESSCREDITWORTHY COMPANIES AND CAN BE VERY DIFFICULT TO VALUE TREASURE BAY GAMING & RESORTS FOR EXAMPLE RAISED 115 MILLION IN A PRIVATE PLACEMENT OF UNITS CONSISTING OF 1225 SEVENYEAR FIRSTMORTGAGE NOTES AND WARRANTS FOR 15 OF THE STOCK THE COMPANY INTENDS TO USE THE PROCEEDS TO BUILD TWO PROJECTS IN MISSISSIPPI BUT THE COMPANY HAS YET TO GET A LICENSE TO OPERATE CASINOS IN THAT STATE RECENT JUNKBOND OFFERINGS TRADED UP BY A POINT OR MORE IN FRIDAY'S OTHERWISE QUIET CORPORATEBOND MARKET INVESTMENT COMPANY TRISM INC'S 1075 COUPON BONDS MATURING IN 2000 FOR EXAMPLE ROSE 125 POINTS OR 1225 FOR A BOND WITH A 1000 FACE VALUE TO 10125 THE YIELD DROPPED TO 1054 FROM 1075 TRISM'S BONDS WERE JUST PRICED LATE THURSDAY AS WERE THE BONDS OF PENNCORP FINANCIAL GROUP INC WHICH ALSO TRADED HIGHER PENNCORP IS AN INSURANCE HOLDING COMPANY PENNCORP'S 925 DEBT MATURING IN 2003 ROSE ONE POINT OR 10 FOR A BOND WITH A A 1000 FACE VALUE TO 101 THE YIELD DROPPED TO 907 FROM 925 MEANWHILE TREASURY PRICES ENDED THE WEEK SLIGHTLY HIGHER BOLSTERED BY A REPORT THAT FEDERAL RESERVE OFFICIALS AREN'T INCLINED TO RAISE INTEREST RATES A FRIDAY WASHINGTON POST ARTICLE QUOTED SENIOR FEDERAL RESERVE OFFICIALS AS SAYING INFLATIONARY PRESSURES WON'T BE SIGNIFICANT ENOUGH TO WARRANT A PREEMPTIVE TIGHTENING MOVE THE REPORT ALSO SAID THE OFFICIALS BELIEVE THE CURRENT PICKUP IN ECONOMIC GROWTH WILL TRAIL OFF IN THE FIRST QUARTER OF 1994 PRECLUDING A NEED BY THE FED TO TIGHTEN THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY 1/4 POINT OR NEARLY 250 TO 99 17/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE FELL TO 628 FROM 629 ON THURSDAY THE NEWS ACCOUNT GAINED CREDENCE IN THE MARKETS BECAUSE OF THE FED'S PERCEIVED PENCHANT FOR FILTERING INFORMATION THROUGH CERTAIN CHANNELS INCLUDING THE WASHINGTON POST SAID JIM FITZGIBBON CHIEF MARKET STRATEGIST AT TOKAI BANK I THINK ESSENTIALLY THE ONLY REASON PEOPLE PAID ATTENTION TO IT IS THERE IS A HUGE ARGUMENT AS TO WHETHER THERE IS LEGITIMATE NEED TO NUDGE RATES HIGHER OR NOT SAID MR FITZGIBBON THE FED IS HAVING THIS ARGUMENT AND DEALERS ARE ARGUING AMONG THEMSELVES BOTH PRO AND CON AS TO WHETHER THEY SHOULD THOMAS T VOGEL JR CONTRIBUTED TO THIS ARTICLE 9312200055 931220 PINAULTPRINTEMPS SELLS 60 OF A UNIT TO REALESTATE GROUP SPECIAL TO THE WALL STREET JOURNAL PARIS FRENCH DISTRIBUTION GROUP PINAULTPRINTEMPS SA IS SELLING A 60 STAKE IN A UNIT THAT OWNS TWO BUILDINGS NEAR THE OPERA IN THE HEART OF PARIS'S PRESTIGIOUS SHOPPING DISTRICT TO REAL ESTATE INVESTMENT GROUP UNIBAIL SA FOR 540 MILLION FRENCH FRANCS 925 MILLION THE SALE WILL HELP THE HEAVILY INDEBTED PINAULTPRINTEMPS TO CONTINUE ITS DEBTREDUCTION PLANS A COMPANY OFFICIAL SAID THE GROUP'S GOAL FOR 1993 WAS TO BRING DEBT DOWN BY FIVE BILLION FRANCS TO 13 BILLION FRANCS THE DEBT STEMS FROM FRENCH BUSINESSMAN FRANCOIS PINAULT'S TAKEOVER OF PRINTEMPS SA IN A CONTROVERSIAL BID ON THE PARIS BOURSE MR PINAULT THEN MERGED IT WITH HIS PINAULT SA UNIBAIL WILL BUY A 60 STAKE IN SOCIETE IMMOBILIERE PROVENCE A UNIT OF PINAULTPRINTEMPS WHICH LEASES THE BRUMMEL AND PRISUNIC BUILDINGS TO PINAULTPRINTEMPS THE BUILDINGS HOUSE STORES AND OFFICES SAID ALAIN BENON GENERAL MANAGER OF UNIBAIL UNIBAIL WILL GET 60 OF THE RENT FROM THE BUILDINGS WHICH HAVE LEASES OF MORE THAN 10 YEARS ACCOUNTING FOR THE COST OF THE STAKE AND THE INCOME THE YIELD IS ABOUT 8 A YEAR MR BENON SAID A PINAULTPRINTEMPS OFFICIAL SAID THAT THE COMPANY IS STILL DISCUSSING HOW TO DISPOSE THE REST OF A BLOCK OF IMMOBILIZED TREASURY SHARES THAT HAVE LOST THEIR VOTING RIGHTS THE COMPANY WAS TO DISPOSE OF A BLOCK OF 222 OF ITS SHARES WHICH IT ACQUIRED AS PART OF THE PRINTEMPS ACQUISITION BY DEC 11 OR RISK HAVING THEM DISAPPEAR ALTOGETHER 9312200054 931220 LETTERS TO THE EDITOR HANDKISSING IN POLAND IN YOUR NOV 19 PAGEONE ARTICLE WOMEN IN POLAND FIND LITTLE LIBERATION IN SHIFT TO DEMOCRACY THE PARTICULAR EXAMPLES OF ANCEDOTAL EVIDENCE AMOUNT TO A GROSS GENERALIZATION STATEMENTS SUCH AS COMMUNIST POLAND REMAINED THE LAST COUNTRY IN EUROPE WHERE MEN KISSED WOMEN'S HANDS AND THE LAST WHERE MEN NEVER DID A JOT OF HOUSEWORK ARE TRULY PREPOSTROUS THE KISSING OF A WOMAN'S HAND WAS CONSIDERED DECADENT AND ARISTOCRATIC BY THE PROLETARIAN COMMUNIST REGIME HOWEVER IT WAS AND STILL IS CONSIDERED BY BOTH MEN AND WOMEN TO BE A SIGN OF COMMON COURTESY COMING FROM A DIFFERENT MORE CASUAL CULTURE YOU MIGHT CONSIDER SUCH DISPLAY STRANGE AND SEXIST NEVERTHELESS I WOULD ENCOURAGE YOU TO FIND OUT MORE ABOUT SOMEWHAT UNIQUE AND BEAUTIFUL WAYS OF THE POLISH SOCIETY AND LEAVE THE PURITAN BAGGAGE BEHIND 9312200052 931220 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT CARELINE INC INITIAL 5750000 COMMON SHARES VIA ROBERTSON STEPHENS & CO CHRISTIANIA RE CORP INITIAL 7 MILLION COMMON SHARES VIA CS FIRST BOSTON COLUMBUS REALTY TRUST INITIAL 6898566 SHARES VIA PRUDENTIAL SECURITIES INC ECOSCIENCE CORP 23 MILLION COMMON SHARES VIA OPPENHEIMER & CO ICF KAISER INTERNATIONAL INC 110 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA DILLON READ & CO MICHAEL ANTHONY JEWELERS INC 2 MILLION COMMON SHARES VIA BEAR STEARNS & CO PROCEPT INC INITIAL 18 MILLION SHARES VIA KIDDER PEABODY & CO SANTA FE HOTEL INC 115 MILLION OF SEVENYEAR FIRST MORTGAGE NOTES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP VALENCE TECHNOLOGY INC 47 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES NEW YORK STATE 80 MILLION OF GENERAL OBLIGATION IMPROVEMENT BONDS VIA COMPETITIVE BID CALIFORNIA HOUSING FINANCE AGENCY 2572 MILLION OF 1993 SERIES F HOME MORTGAGE REVENUE BONDS VIA MERRILL LYNCH & CO NEW YORK STATE URBAN DEVELOPMENT CORP 550 MILLION OF SERIES 1993A CORRECTIONAL CAPITAL FACILITIES REFUNDING BONDS VIA A GOLDMAN SACHS & CO GROUP NORTH CAROLINA MUNICIPAL POWER AGENCY NO 1 1054 MILLION OF REVENUE BONDS VIA A GOLDMAN SACHS GROUP 9312200051 931220 BUSINESS BRIEF CYPRUS AMAX MINERALS CO CREDIT ACCORD OF 1 BILLION IS SET WITH LENDING GROUP CYPRUS AMAX MINERALS CO DENVER SAID IT SIGNED A 1 BILLION CREDIT AGREEMENT WITH A GROUP OF LENDERS LED BY A UNIT OF CHEMICAL BANKING CORP NEW YORK THE MINING CONCERN SAID THE NEW CREDIT FACILITY WOULD REPLACE THE EXISTING 400 MILLION CREDIT FACILITY OF CYPRUS MINERALS AND ABOUT 500 MILLION OF EXISTING CREDIT FACILITIES OF AMAX INC THE TWO COMPANIES MERGED LAST MONTH CYPRUS AMAX SAID THE NEW CREDIT FACILITY WOULD BE USED FOR GENERAL CORPORATE PURPOSES 9312200050 931220 WHO'S NEWS TYSON FOODS INC TYSON FOODS INC SPRINGDALE ARK ROY BROWN 41 YEARS OLD VICE PRESIDENT OF INTERNATIONAL SALES AND MARKETING WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT OF THE SEAFOOD DIVISION OF THE POULTRY CONCERN 9312200049 931220 BUSINESS BRIEF THYSSEN AG STEEL UNIT EXPECTS TO POST A BIG LOSS FOR FISCAL YEAR THYSSEN STAHL AG WILL POST A HIGH LOSS FOR ITS FISCAL YEAR ON A NEARLY 19 PLUNGE IN SALES THE GERMAN STEELMAKER SAID IN ITS INHOUSE MAGAZINE THYSSEN STAHL SAID SALES FELL TO 78 BILLION MARKS 456 BILLION IN THE YEAR ENDED SEPT 30 IT DIDN'T GIVE A COMPARABLE FIGURE FOR THE PREVIOUS YEAR SHIPMENTS DECLINED 11 ON DEC 12 THYSSEN STAHL'S PARENT COMPANY THYSSEN AG SAID IT WOULDN'T RULE OUT THE SALE OF ITS STEEL OPERATIONS THE CONDITIONS FOR AN EARNINGS IMPROVEMENT SHOULD HAVE BEEN SET WITH RAWSTEEL PRICE INCREASES IN APRIL JULY AND OCTOBER AND ANOTHER ONE PLANNED FOR JAN 1 THYSSEN STAHL SAID THYSSEN STAHL CHAIRMAN EKKEHARD SCHULZ HAS SAID THAT THE STEEL UNIT COULD RETURN TO PROFITABILITY BY THE SECOND HALF OF 1994 IF STEEL PRICE INCREASES STICK LAST YEAR THE COMPANY'S PROFIT FELL TO 36 MILLION MARKS FROM 317 MILLION MARKS IN FISCAL 1991 THYSSEN STAHL SAID FRIDAY IT HAS SHED 5812 EMPLOYEES OR 14 OF ITS WORK FORCE SINCE SEPT 30 1992 9312200048 931220 PEPPERAND SALT CONSIDER THIS TYPICAL CASE IS NOW GET OUTTA MY FACE THE PHONE WILL RING SOON AGAIN 9312200047 931220 BUSINESS BRIEF UJB FINANCIAL CORP ACQUISITION OF VSB BANCORP FOR 717 MILLION IS PLANNED UJB FINANCIAL CORP PRINCETON NJ SAID IT AGREED TO ACQUIRE VSB BANCORP INC OF CLOSTER NJ FOR STOCK VALUED AT 2125 A SHARE OR ABOUT 717 MILLION UJB IS A PRINCETONBASED 136 BILLION BANK HOLDING COMPANY WITH 39 BRANCH OFFICES IN NORTHERN NEW JERSEY VSB A HOLDING COMPANY WITH 379 MILLION IN ASSETS OPERATES THE VALLEY SAVINGS BANK WITH SIX RETAIL OFFICES IN NORTHERN NEW JERSEY VSB SHAREHOLDERS WILL RECEIVE BETWEEN 07727 AND 09444 SHARE OF UJB COMMON STOCK FOR EACH SHARE OF VSB COMMON DEPENDING ON THE AVERAGE CLOSING PRICE OF UJB STOCK OVER A PRICING PERIOD UJB SAID THE ACQUISITION IS EXPECTED TO CLOSE IN THE SECOND OR THIRD QUARTER OF 1994 IN NASDAQ STOCK MARKET TRADING FRIDAY VSB STOCK CLOSED AT 20 UP 1 LAST WEEK THE STOCK TRADED AS LOW AS 18 UJB STOCK CLOSED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT 2450 UP 25 CENTS 9312200046 931220 BUSINESS BRIEF ENTERGY CORP AGENCY'S APPROVAL RECEIVED IN MERGER WITH GULF STATES ENTERGY CORP NEW ORLEANS SAID IT RECEIVED ANOTHER FEDERAL APPROVAL NECESSARY IN ITS MERGER WITH GULF STATES UTILITIES CO THE COMPANY SAID THE OFFICE OF NUCLEAR REACTOR REGULATION APPROVED THE OWNERSHIP TRANSFER TO ENTERGY OF GULF STATES UTILITIES CO AND NAMED ENTERGY OPERATIONS INC THE OPERATOR OF THE RIVER BEND NUCLEAR STATION THE RIVER BEND PLANT IS 70OWNED BY GULF STATES AND 30OWNED BY CAJUN ELECTRIC POWER COOPERATIVE ENTERGY STILL IS AWAITING APPROVAL FROM THE SECURITIES AND EXCHANGE COMMISSION AND FINAL APPROVALS FROM PUBLIC UTILITY COMMISSIONS IN LOUISIANA AND TEXAS THE COMPANIES EXPECT TO COMPLETE THEIR TRANSACTION BY YEAR'S END OR EARLY NEXT YEAR 9312200045 931220 THE OUTLOOK THE FED MAY DECIDE IT'S TIME TO TIGHTEN BY LINDLEY H CLARK JR NEW YORK WHEN THE FEDERAL OPEN MARKET COMMITTEE MEETS TOMORROW TO SET THE FEDERAL RESERVE'S MONETARY POLICY FOR THE MONTHS AHEAD IT IS LIKELY TO DECIDE ON A BIAS TOWARD RESTRAINT THE COMMITTEE AT ITS MAY AND JULY POLICY MEETINGS DECIDED ON A SIMILAR BIAS BUT BACKED AWAY FROM TAKING ANY RESTRICTIVE ACTIONS THE FEDERAL FUNDS RATE THE FEE THE BANK CHARGES ON VERY SHORTTERM LOANS TO COMMERCIAL BANKS REMAINED FIRMLY LOCKED AT 3 AND THE MONEY SUPPLY CONTINUED TO EXPAND BRISKLY THERE HAS BEEN NO CHANGE IN THE FED'S POLICY STANCE SINCE SEPTEMBER 1992 WHEN THE FUNDS RATE WAS REDUCED TO ITS PRESENT LEVEL IN VIEW OF THE CURRENT ECONOMIC ENVIRONMENT IT MAY BE TIME FOR A CHANGE THE ECONOMY IS DEVELOPING CONSIDERABLE MOMENTUM FINAL DEMAND IS CATCHING UP WITH PRODUCTION COMMENTS EUGENE SHERMAN OF MA SCHAPIRO & CO THE SECOND AND THIRD QUARTERS OF THIS YEAR SAW REASONABLY STRONG PERSONALCONSUMPTION EXPENDITURES HOUSING SALES AND BUSINESSEQUIPMENT INVESTMENT BUT INDUSTRIAL PRODUCTION HOUSING STARTS AND CONSTRUCTION DID NOT INCREASE AS RAPIDLY THEREFORE INVENTORIES AND THE FLOW OF GOODS TO MARKET WERE DEPLETED BUSINESS NOW HAS TO EXPAND OUTPUT TO CATCH UP SO IT ISN'T SURPRISING THAT THE EMPLOYMENT DATA IN RECENT MONTHS HAVE BEEN VERY ENCOURAGING NONFARM PAYROLLS IN NOVEMBER SHOWED FAIRLY STRONG GROWTH FOR THE THIRD STRAIGHT MONTH AND TOTAL CIVILIAN EMPLOYMENT POSTED A VERY LARGE GAIN IN NOVEMBER FOR THE SECOND MONTH IN A ROW AT THE MOMENT THIS HARDLY SEEMS TO BE THE JOBLESS RECOVERY THAT MANY PEOPLE WERE TALKING ABOUT A FEW MONTHS AGO ALTHOUGH MUCH OF THE JOB MARKET REMAINS WEAK SO FAR MOST ECONOMISTS THINK THAT THE IMPROVING ECONOMIC NUMBERS SUGGEST ONLY A CONTINUATION OF MODERATE GROWTH THROUGH 1994 WITH SOME ANALYSTS BASING SUCH FORECASTS AT LEAST PARTLY ON A BELIEF THAT THE FED WON'T SIT ON ITS HANDS ALL YEAR THE 51 ANALYSTS INTERVIEWED MONTHLY BY BLUE CHIP ECONOMIC INDICATORS A SEDONA ARIZ NEWSLETTER ON THE AVERAGE EXPECT INFLATIONADJUSTED GROSS DOMESTIC PRODUCT TO GROW 29 NEXT YEAR ALMOST UNCHANGED FROM THE 28 GAIN THEY SEE FOR THIS YEAR AND THEY LOOK FOR THE CONSUMER PRICE INDEX TO RISE 29 IN 1994 A BIT LESS THAN THIS YEAR'S 30 THAT SORT OF OUTLOOK MODEST GROWTH AND MODEST INFLATION HARDLY INDICATES AN OBVIOUS NEED FOR MONETARY TIGHTENING MOREOVER THE FED IS UNDER PRESSURE FROM THE CLINTON ADMINISTRATION AND CONGRESS TO KEEP INTEREST RATES DOWN AND MONEY ABUNDANT THE HOUSE BANKING COMMITTEE CONTINUES TO SNIPE AT THE CENTRAL BANK CONTENDING THAT MONETARY POLICY SOMEHOW WOULD BE IMPROVED IF THE PRESIDENTS OF THE REGIONAL FED BANKS WERE APPOINTED BY PRESIDENT CLINTON INSTEAD OF BY THE DIRECTORS OF THE INDIVIDUAL BANKS HOWEVER AS NOBEL LAUREATE MILTON FRIEDMAN SAYS MONETARY POLICY WORKS ITS WAY THROUGH THE ECONOMY WITH LONG AND VARIABLE LAGS AN ACCOMMODATIVE POLICY HAS BEEN SUPPORTING THE ECONOMY THROUGH THE CURRENT RECOVERY AND THE ECONOMY IS LOOKING STRONGER AS FORMER FED CHAIRMAN WILLIAM MCCHESNEY MARTIN ONCE SAID THE FED'S TASK OFTEN IS TO TAKE THE PUNCH BOWL AWAY JUST AS THE PARTY IS GETTING GOOD EARLIER THIS YEAR FED CHAIRMAN ALAN GREENSPAN ARGUED THAT THE INFLATIONADJUSTED FEDERAL FUNDS RATE MUST BE PUSHED INTO POSITIVE TERRITORY IF INFLATION IS TO BE KEPT UNDER CONTROL WITH THE FUNDS RATE AND THE CONSUMER PRICE INDEX BOTH AROUND 3 AS THEY HAVE BEEN FOR SEVERAL MONTHS THE REAL FUNDS RATE IS ZERO WHICH IS DANGEROUS TERRITORY THE LAST TIME REAL SHORTTERM RATES WERE NEGATIVE RECALLS DAVID JONES OF AUBREY G LANSTON & CO WAS IN THE 1970S WHEN INFLATION PRESSURES SOARED IN THEORY BUSINESSMEN AND CONSUMERS COULD LEARN TO COPE WITH 1970SSTYLE INFLATION IF THEY KNEW IT WOULD BE STABLE IF THEY WERE SURE INFLATION WOULD ALWAYS BE 10 PRICES AND WAGES COULD BE GEARED TO THAT SO THEY WOULD RISE AUTOMATICALLY BUT IT'S AT LEAST AS HARD TO KEEP INFLATION CONSTANT AT 10 AS IT IS TO KEEP IT STABLE AT 2 OR ZERO AND THE CONSTANT CHANGES THAT WOULD BE REQUIRED TO GEAR AN ECONOMY TO 10 WOULD BE MINDBOGGLING BUT HOW DO YOU HIT SAY A CONSTANT ZERO IN A RECENT SPEECH JERRY L JORDAN PRESIDENT OF THE CLEVELAND FEDERAL RESERVE BANK ARGUED THAT THE FED SHOULD AIM AT SUCH A TARGET BY SETTING AN EXPLICIT OBJECTIVE FOR THE CONSUMER PRICE INDEX ATTAINING SUCH AN OBJECTIVE WOULDN'T BE EASY BUT THE EFFORT ALONE WOULD ENHANCE THE FED'S CREDIBILITY IF THE FED SHOULD DEVIATE FROM ITS GOAL THE PUBLIC WOULD KNOW THAT THE BANK INTENDED TO GET BACK ON TRACK REALISTICALLY MR JORDAN SUGGESTS THAT THE FED TARGET A SPECIFIC CPI LEVEL FOR THE YEAR 2000 AND THEN CONDUCT MONETARY POLICY TO KEEP THE CPI FLUCTUATING AROUND A TREND LINE LEADING TO THAT GOAL ONCE THE GOAL WAS ATTAINED POLICY WOULD BE CONDUCTED TO KEEP THE CPI NEAR THAT TARGET THERE IS SOME INDICATION THAT THE FEDERAL RESERVE MAY ALREADY HAVE MOVED TO A LESS ACCOMMODATIVE POLICY THE MONETARY BASE CONSISTING OF BANK RESERVES AND CURRENCY IN CIRCULATION HAD GROWN AT DOUBLEDIGIT RATES THROUGH MOST OF THIS YEAR BUT FROM OCT 13 TO DEC 9 IT GREW ONLY 59 ALTHOUGH A FEW ECONOMISTS EXPECT THE FED TO RAISE THE FUNDS RATE ALMOST IMMEDIATELY THE MAJORITY PREDICT THAT IT WILL WAIT UNTIL THE FIRST QUARTER OF 1994 THE ECONOMY GREW STRONGLY IN LAST YEAR'S FOURTH QUARTER AND THEN SLOWED SHARPLY IN THE FIRST THREE MONTHS OF THIS YEAR FEW ANALYSTS EXPECT A REPEAT BUT THEY WOULD LIKE TO BE SURE 9312200044 931220 BUSINESS BRIEF FIRST FIDELITY BANCORP STOCKCONVERSION VALUES SET IN PEOPLES WESTCHESTER PACT FIRST FIDELITY BANCORP LAWRENCEVILLE NJ SAID CONVERSION VALUES WERE ESTABLISHED IN ITS PREVIOUSLY ANNOUNCED PURCHASE OF PEOPLES WESTCHESTER SAVINGS BANK HAWTHORNE NY EACH SHARE OF PEOPLES WESTCHESTER COMMON WILL BE CONVERTED INTO EITHER 09390 SHARE OF FIRST FIDELITY COMMON OR 4086 IN CASH ABOUT 54 OF PEOPLES' SHARES OUTSTANDING WILL BE CONVERTED INTO CASH AND 46 INTO FIRST FIDELITY COMMON THE PURCHASE IS EXPECTED TO CLOSE DEC 30 WITH THE PURCHASE FIRST FIDELITY'S NEW YORK UNIT WILL HAVE 25 BILLION IN ASSETS AND MORE THAN 40 OFFICES FIRST FIDELITY HAD ASSETS OF 326 BILLION AS OF SEPT 30 9312200043 931220 BUSINESS BRIEF WILLCOX & GIBBS INC FIRM COMPLETES PURCHASE OF SUMMERS FOR CASH NOTES WILLCOX & GIBBS INC SAID IN NEW YORK THAT IT COMPLETED THE ACQUISITION OF SUMMERS GROUP INC FROM AN INDIRECT UNIT OF BTR PLC FOR 60 MILLION IN CASH AND 25 MILLION IN WILLCOX & GIBBS THREEYEAR NOTES IN ADDITION WILLCOX & GIBBS MAY PAY AS MUCH AS 35 MILLION MORE FOR SUMMERS DEPENDING ON ITS RESULTS IN 1993 AND 1994 SUMMERS DISTRIBUTES ELECTRICAL PARTS AND SUPPLIES MAINLY IN TEXAS OKLAHOMA LOUISIANA CALIFORNIA AND ARKANSAS IT HAD 1992 REVENUE OF 395 MILLION AS A RESULT OF THE ACQUISITION WILLCOX & GIBBS WHICH DISTRIBUTES ELECTRICAL PARTS AND SUPPLIES IN 18 STATES WILL HAVE PRO FORMA SALES IN 1993 OF ABOUT 1 BILLION 9312200042 931202 GOOD HIDDEN NEWS ABOUT THE AIDS EPIDEMIC BY ROBERT S ROOTBERNSTEIN STATISTICS OF ANY KIND ARE DIFFICULT TO INTERPRET AND AIDS STATISTICS ARE NO EXCEPTION INDEED THE LATEST STATISTICS RELEASED BY THE CENTERS FOR DISEASE CONTROL ARE SO ODD AS TO BE VIRTUALLY INDECIPHERABLE ONE BEGINS TO SUSPECT THE DIFFICULTIES HAVE BEEN INTRODUCED ON PURPOSE ON OCT 30 THE CDC RELEASED A REPORT CONTENDING THAT AIDS HAS BECOME THE TOP KILLER OF US MALES AGE 25 TO 44 AND THE FOURTH LEADING KILLER OF WOMEN IN THE SAME AGE GROUP STATISTICS THAT RECEIVED WIDE CURRENCY IN THE LEADUP TO WORLD AIDS DAY YESTERDAY ALTHOUGH THE REPORT STATES CLEARLY THAT PART OF THE REASON FOR THE SUDDEN UPSURGE IN AIDS CASES IS DUE TO A NEW EXPANDED DEFINITION THAT WENT INTO EFFECT A YEAR AGO IT NONETHELESS PRESENTS THE DATA SO THAT THE IMPLICATIONS OF THIS CHANGE ARE FAR FROM OBVIOUS BETWEEN JANUARY AND SEPTEMBER OF 1992 60656 PEOPLE WERE DIAGNOSED WITH AIDS AND REPORTED TO THE CDC BETWEEN JANUARY AND SEPTEMBER OF THIS YEAR 85526 NEW AIDS PATIENTS WERE REPORTED TO THE CDC AN INCREASE OF 41 FROM THE YEAREARLIER PERIOD ONE'S FIRST IMPRESSION IS THAT THE EPIDEMIC CONTINUES TO WORSEN THE CDC REPORT IMMEDIATELY CAUTIONS THAT THE HUGE INCREASE IN NEW AIDS CASES DOES NOT MEAN THAT AIDS IS MUSHROOMING MOST OF THE INCREASE IT SAYS IS DUE TO CHANGES IN THE DEFINITION OF AIDS THAT VASTLY EXPANDED THE DIAGNOSTIC CRITERIA AT THE BEGINNING OF THIS YEAR THESE DEFINITIONAL CHANGES WERE PREDICTED TO MORE THAN DOUBLE THE NUMBER OF REPORTED CASES AND INDEED THE NUMBER OF CASES REPORTED UNDER THE NEW DEFINITION ACCOUNT FOR MORE THAN HALF OF ALL THOSE REPORTED SO FAR THIS YEAR INTERESTINGLY THOUGH NO ONE SEEMS TO HAVE NOTICED THAT IF THE NUMBER OF CASES DIAGNOSED UNDER THE NEW DEFINITION WAS TO BE MORE THAN TWICE THE NUMBER FOUND UNDER THE OLD DEFINITION AND AIDS HAS CONTINUED TO GROW AT THE SAME RATE AS BEFORE THEN THE TOTAL NUMBER OF AIDS CASES REPORTED THIS YEAR SHOULD BE NOT 41 HIGHER THAN FOR THE SAME PERIOD LAST YEAR BUT MORE THAN 100 HIGHER WHY THE DISCREPANCY EVEN ODDER CDC OFFICIALS CLAIM THAT WHEN THE NEW DEFINITIONAL BIAS IS TAKEN INTO ACCOUNT AIDS IS ONLY INCREASING ABOUT 3 TO 5 A YEAR AS IT HAS BEEN SINCE 1990 THE DEFINITIONAL CHANGES SIMPLY ALLOWED MANY PEOPLE WHO WERE GOING TO GET AIDS SOMEDAY ACCORDING TO THE OLD DEFINITION TO BE DIAGNOSED AND TREATED SOONER THAT IS GOOD FOR PEOPLE WITH AIDS BUT WHAT DOES IT DO TO OUR ABILITY TO TRACK THE COURSE OF THE EPIDEMIC THE CDC ITSELF ADMITS THAT OVER HALF OF THE NEW CASES REPORTED THIS YEAR ARE DUE TO THE NEW DEFINITION 48915 OF THE 85526 IN OTHER WORDS ONLY 36611 OF THE AIDS CASES REPORTED SO FAR THIS YEAR WOULD HAVE QUALIFIED AS AIDS CASES ACCORDING TO THE OLD DEFINITION THAT IS 20045 FEWER AIDS PATIENTS IN 1993 THAN THE 60656 DIAGNOSED DURING THE SAME NINE MONTHS IN 1992 THIS IS A DROP OF 33 NOT AN INCREASE OF 3 TO 5 SO ARE AIDS CASES INCREASING STEADILY AT 3 TO 5 A YEAR AS THE CDC CLAIMS WITHOUT ANY APPARENT JUSTIFICATION OR ARE THEY DECREASING DRASTICALLY BY SOME 30 IF ALL THE PEOPLE WHO HAVE BEEN DIAGNOSED AS HAVING AIDS ACCORDING TO THE NEW DEFINITION WOULD EVENTUALLY HAVE BEEN DIAGNOSED AS HAVING AIDS ACCORDING TO THE OLD DEFINITION A FACT THE CDC ITSELF ADMITS THEN IS IT NOT POSSIBLE TO SEE THE CURRENT GLUT OF LARGE NUMBERS AS A FORM OF ARTIFICIAL INFLATION DESIGNED TO IMPRESS THE CDC'S CLIENTS JUST AT A TIME WHEN IN FACT THE AIDS EPIDEMIC MAY HAVE PEAKED AND BE ON ITS WAY DOWN THE CRUCIAL INFORMATION IS THE NUMBER OF PEOPLE WHO WOULD HAVE BEEN DIAGNOSED WITH AIDS ACCORDING TO THE NEW DEFINITION HAD IT BEEN IN PLACE IN 1992 OR 1990 OR EVEN 1985 THESE DATA DO NOT AND CAN NEVER EXIST EVEN WORSE THIS IS NOT THE FIRST TIME THAT THE DEFINITION OF AIDS HAS BEEN ALTERED TO INCREASE THE NUMBER OF DIAGNOSES THE DEFINITION CHANGE IMPLEMENTED IN 1985 INCREASED THE NUMBER OF AIDS DIAGNOSES ABOUT 2 A YEAR OVER THE 1984 DEFINITION THE 1987 CHANGE INCREASED NEW DIAGNOSES 30 TO 40 A YEAR AND NOW THE NEW CHANGES MORE THAN DOUBLE THE NUMBER ANYONE SIMPLY PLOTTING AIDS STATISTICS PROVIDED BY THE CDC YEAR BY YEAR WILL BE TERRIBLY MISLED BY THE RESULTING GRAPH FOR THE SIMPLE REASON THAT THE NUMBERS REPRESENT APPLES ONE YEAR APPLES AND ORANGES ANOTHER APPLES ORANGES AND BANANAS A FEW YEARS LATER AND SO FORTH AS JAMES O MASON ASSISTANT SECRETARY OF HEALTH AND HUMAN SERVICES TOLD THE LOS ANGELES TIMES IN 1991 WHEN THE LATEST ALTERATIONS WERE PROPOSED CHANGING DEFINITIONS MESSES UP THE BASELINE FOR COMPARISON FROM PAST TO FUTURE AND WILL MAKE THE INTERPRETATION OF TRENDS IN INCIDENCE AND CHARACTERISTICS OF CASES MORE DIFFICULT PERHAPS THAT IS THE POINT PERHAPS THE CDC DOES NOT WANT ANYONE TO RECOGNIZE WHAT SOME STATISTICIANS AND ACTUARIES HAVE BEEN PREDICTING FOR SEVERAL YEARS NOW THAT AIDS PEAKED SOMETIME BETWEEN 1989 AND 1992 IN THE US AND IS ON ITS WAY DOWN INDEED ACCORDING TO ONE OF THE BEST VALIDATED PRINCIPLES OF EPIDEMIOLOGY FARR'S LAW THE EPIDEMIC SHOULD RECEDE AT THE SAME RATE THAT IT AROSE THINK OF IT PERHAPS THOSE PEOPLE WHO WERE MOST SUSCEPTIBLE TO AIDS HAVE ALREADY CONTRACTED THE DISEASE AND IT WILL REMAIN WITHIN HIGH RISK GROUPS AS THE NATIONAL RESEARCH COUNCIL REPORT PREDICTED LAST YEAR OR EVEN BETTER MAYBE SAFER SEX CAMPAIGNS CLEAN NEEDLE EXCHANGES AND BETTER HEALTH CARE ARE HAVING THEIR EFFECTS IS IT REALLY SO UNTHINKABLE THAT THERE IS GOOD NEWS ON THE AIDS FRONT THAT WE CANNOT FACE IT WHEN IT APPEARS THE UPSHOT OF THIS LESSON IS A SIMPLE ONE THE CDC IS COMPARING APPLES WITH APPLES AND ORANGES THAT IT CAN GET AWAY WITH SUCH SLEIGHTS OF HAND ONLY GOES TO SHOW HOW REALLY DEEPLY INNUMERACY RUNS IN THIS SOCIETY INNUMERACY SO PERVASIVE THAT NOT EVEN OUR SCIENCE REPORTERS OUR AIDS ACTIVISTS AND OUR RESEARCHERS SEEM TO NOTICE OR IS IT WORSE EVEN THAN NOT NOTICING HAVE WE REACHED THE STAGE IN AIDS ADVOCACY THAT WE WILL MISLEAD IN ORDER TO SUCCEED MR ROOTBERNSTEIN IS A PROFESSOR OF PHYSIOLOGY AT MICHIGAN STATE UNIVERSITY HE IS THE AUTHOR OF RETHINKING AIDS FREE PRESS IN GOOD HIDDEN NEWS ABOUT THE AIDS EPIDEMIC BY ROBERT ROOTBERNSTEIN DEC 2 TWO NUMBERS WERE INCORRECT THE NUMBER OF PEOPLE DIAGNOSED WITH AIDS AND REPORTED TO THE CENTERS FOR DISEASE CONTROL BETWEEN JANUARY AND SEPTEMBER 1992 WAS 36065 THE TOTAL FOR THE FIRST NINE MONTHS OF 1993 THUS INDICATES A 141 INCREASE FROM THE YEAREARLIER PERIOD SEE RELATED LETTERS LETTERS TO THE EDITOR AIDS BLOOD SUPPLY TRUTH IN DIAGNOSIS WSJ DEC 17 1993 9312020126 YY93 MM12 9312200041 931220 BUSINESS BRIEF KPMG PEAT MARWICK WORLDWIDE FEE INCOME FELL 25 DURING FISCAL 1993 KPMG PEAT MARWICK AMSTERDAM SAID WORLDWIDE FEE INCOME FOR THE FISCAL YEAR ENDED SEPT 30 WAS 6 BILLION DOWN 25 FROM 615 BILLION A YEAR EARLIER THE ACCOUNTING AND CONSULTING FIRM ATTRIBUTED THE DROP TO A STRENGTHENING OF THE DOLLAR THE FIRM SAID THE DOLLAR'S RISE HURT THE VALUE OF ITS FEES 70 OF WHICH ARE DENOMINATED IN CURRENCIES OTHER THAN THE DOLLAR IT ALSO SAID FEE INCOME GREW BY 14 IN ASIA 15 IN LATIN AMERICA AND 60 IN EASTERN EUROPE RESULTS IN AFRICA AND THE MIDDLE EAST SHOWED HEALTHY GROWTH BUT NORTH AMERICAN REVENUE WAS FLAT WITH GROWTH IN THE US CLIMBING A MEAGER 1 TO 182 BILLION FROM 18 BILLION A YEAR EARLIER 9312200040 931220 BUSINESS BRIEF PET INC FOOD COMPANY PLANS TO SELL HAIN SUBSIDIARY TO KINERET PET INC SIGNED A DEFINITIVE AGREEMENT TO SELL ITS HAIN PURE FOOD CO SUBSIDIARY TO KINERET ACQUISITION CORP A JERICHO NY SPECIALTY FOODS COMPANY FOR CASH AND STOCK THE AMOUNT WASN'T DISCLOSED THE ST LOUIS FOOD CONCERN SAID THE SALE IS PART OF THE PLAN ANNOUNCED LAST MAY TO SHED ITS REFRIGERATED SNACK AND HEALTH FOODS BUSINESSES AS PREVIOUSLY ANNOUNCED PET HAS COMPLETED THE SALE OF ITS SNACK FOOD BUSINESS AND ENTERED INTO A LETTER OF INTENT TO SELL ORVAL KENT FOOD CO A MAJOR COMPONENT OF PET'S REFRIGERATED BUSINESS THE SALE OF HAIN WHICH MAKES AND DISTRIBUTES HEALTH FOODS COOKING OILS AND OTHER CONDIMENTS IS SUBJECT TO CERTAIN CONDITIONS INCLUDING FINANCING AND IS EXPECTED TO BE COMPLETED IN THE FIRST QUARTER OF 1994 FOR THE YEAR ENDED JUNE 30 1993 HAIN HAD REVENUE OF 515 MILLION 9312200039 931220 BUSINESS BRIEF FDIC BOARD AGREES TO GUIDELINES TO END SUIT OVER SEIZURE OF FIRST CITY BANKS HOUSTON FIRST CITY BANCORP OF TEXAS SAID THE FEDERAL DEPOSIT INSURANCE CORP BOARD AGREED TO GUIDELINES TO SETTLE LITIGATION OVER THE SEIZURE OF THE COMPANY'S BANKS INCLUDING AN INITIAL FUNDING THAT WILL REPAY FIRST CITY CREDITORS IN FULL A DEFINITIVE AGREEMENT STILL MUST BE NEGOTIATED AND THE PLAN WILL REQUIRE FEDERAL BANKRUPTCYCOURT APPROVAL FIRST CITY SAID FIRST CITY SUED THE FDIC IN SEPTEMBER ALLEGING THAT FEDERAL REGULATORS UNJUSTLY SEIZED THE COMPANY'S 20 BANKS LAST YEAR WHILE THE COMPANY WAS TRYING TO RECAPITALIZE WITH PRIVATE FUNDS BONDHOLDERS FORCED FIRST CITY INTO BANKRUPTCYLAW PROCEEDINGS A FEW DAYS AFTER THE SEIZURE AT THE TIME THE FDIC ESTIMATED FIRST CITY WOULD COST ITS INSURANCE FUND 500 MILLION BUT AFTER SELLING THE BANKS AND OTHER ASSETS THE FDIC ESTIMATED IT WOULD BE LEFT WITH A 60 MILLION SURPLUS TO BE RETURNED TO THE COMPANY FIRST CITY ON THE OTHER HAND SAID ITS ESTIMATES OF THE SURPLUS OWED WERE BETWEEN 450 MILLION AND 500 MILLION THE DISPARITY LARGELY REVOLVES AROUND PRICES THAT ASSETS IN RECEIVERSHIP WILL EVENTUALLY BRING UNDER GUIDELINES ANNOUNCED FRIDAY THE SETTLEMENT WILL BE FUNDED IN AT LEAST TWO STAGES AN INITIAL PAYMENT IN CASH AND OTHER ASSETS AND AT LEAST ONE ADDITIONAL PAYMENT OF THE TOTAL REMAINING SURPLUS ONCE THE FDIC IS CERTAIN ITS INSURANCE FUND FACES NO FURTHER LOSSES ALL DEPOSITORS WILL BE REPAID IN FULL FIRST CITY SAID FIRST CITY SAID IT IS PLEASED WITH THE FDIC BOARD'S ACTION YOU CAN'T GO FROM A TO Z WITH SOMETHING LIKE THIS YOU HAVE TO GO ONE LETTER AT A TIME SAID ROBERT BROWN PRESIDENT ADDING THAT IT'S A BIG MOVE TO DECIDE TO TRY TO SETTLE RATHER THAN LITIGATE FDIC SPOKESMAN ANDREW PORTERFIELD SAID ALTHOUGH THE SIZE OF THE INITIAL PAYMENT MUST BE NEGOTIATED THE GUIDELINES CALL FOR REPAYING ALL CREDITORS IN FULL SO THAT FIRST CITY CAN EMERGE FROM BANKRUPTCY ANTICIPATION OF THE SURPLUS AND SETTLEMENT SENT FIRST CITY STOCK AND BONDS SOARING THIS YEAR THE SERIES B PREFERRED SHARES WHICH SOLD FOR AS LITTLE AS SEVEN CENTS A SHARE IN JANUARY TRADED FRIDAY IN A RANGE OF 42 TO 46 UP FROM 40 TO 42 THE DAY BEFORE ACCORDING TO BRUCE MATES PARAGON CAPITAL'S VICE PRESIDENT OF OVERTHECOUNTER TRADING IN NEW YORK FIRST CITY COMMON STOCK TRADED ON THE PINK SHEETS HAD BEEN DOWN TO TWO CENTS A SHARE BUT WAS QUOTED FRIDAY AT BETWEEN 3375 AND 3875 UP FROM 3 TO 325 THURSDAY 9312200038 931220 BUSINESS BRIEF SUPERVALU INC COMPANY AGREES TO PURCHASE OF SWEET LIFE FOODS INC SUPERVALU INC SAID IT AGREED TO ACQUIRE SWEET LIFE FOODS INC A SUFFIELD CONN WHOLESALE DISTRIBUTOR OF FOOD PRODUCTS TERMS WEREN'T DISCLOSED SUPERVALU A MINNEAPOLIS FOOD WHOLESALER AND RETAILER SAID THE TRANSACTION REPRESENTS A CONTINUATION OF ITS STRATEGY TO INCREASE AND STRENGTHEN ITS WHOLESALE FOOD DISTRIBUTION BASE THE COMPANY SAID THE ADDITION OF NEW MARKETS AND RETAILER CUSTOMERS REPRESENTED BY SWEET LIFE IS AN EXCELLENT GEOGRAPHIC FIT TO ITS EXISTING TERRITORY IN THE NORTHEAST CLOSELY HELD SWEET LIFE SUPPLIES 280 INDEPENDENT FOOD RETAILERS THROUGHOUT NEW ENGLAND AND NEW YORK FROM TWO DISTRIBUTION CENTERS A FACILITY IN SUFFIELD AND A WAREHOUSE IN NORTHBORO MASS THE COMPANY DISTRIBUTES DRY GROCERY PRODUCTS MEAT AND DAIRY ITEMS ICE CREAM FROZEN FOODS CANDY HEALTH AND BEAUTY CARE AND SEASONAL AND GENERAL MERCHANDISE 9312200037 931206 REVIEW & OUTLOOK EDITORIAL MISSISSIPPI PRAYS ALMIGHTY GOD WE ASK THAT YOU BLESS OUR PARENTS TEACHERS AND COUNTRY THROUGHOUT THE DAY IN YOUR NAME WE PRAY AMEN FOR THREE MORNINGS LAST MONTH THESE ARE THE WORDS WITH WHICH STUDENTS AT WINGFIELD HIGH SCHOOL IN JACKSON MISSISSIPPI BEGAN THEIR DAY KIM FAILS PRESIDENT OF THE STUDENT GOVERNMENT READ THIS SIMPLE NONSECTARIAN PRAYER OVER THE SCHOOL'S PA SYSTEM AND THEN EXCUSE THE EXPRESSION LORD ALL HELL BROKE LOOSE PRINCIPAL BISHOP KNOX WAS SUSPENDED AND THEN FIRED A RALLY ON THE STEPS OF THE STATE CAPITOL SUNDAY DREW AN UNPRECEDENTED 4000 PEOPLE SUPPORTING THE SCHOOL PRAYER ON MONDAY ABOUT 300 STUDENTS AT WINGFIELD WALKED OUT OF CLASSES IN PROTEST PROPONENTS OF THE PRAYER POINT TO THE SUPREME COURT'S DECISION LAST TERM TO LET STAND A DECISION BY THE FIFTH CIRCUIT ALLOWING A STUDENTLED PRAYER AT A HIGH SCHOOL GRADUATION CEREMONY IN HOUSTON IN MAY A FEDERAL JUDGE IN BOISE IDAHO ISSUED A SIMILAR RULING IN RESPONSE TENNESSEE PASSED A LAW PERMITTING PUBLIC SCHOOL STUDENTS TO LEAD NONSECTARIAN PRAYERS DURING NONCOMPULSORY SCHOOL EVENTS WHATEVER YOU THINK OF THE LEGAL ARGUMENT FOR THE PUBLICADDRESS PRAYER THE FACT REMAINS THAT THE STUDENTS AND PARENTS OF WINGFIELD HIGH SEEM TO THINK A LITTLE RELIGION IN THE SCHOOLS ISN'T SUCH A BAD IDEA NOW WE'RE GOING TO PULL OVER HERE FOR A MOMENT TO MAKE A LARGER POLITICAL POINT THE CONVENTIONAL WISDOM IS THAT THE REPUBLICANS' NATIONAL POLITICS IS SADDLED WITH THE POLITICS OF SOUTHERN EVANGELICAL CHRISTIANS LIKE THOSE AT THE CONVENTION IN HOUSTON AND THAT SOMEHOW THESE ARDENT MORALISTS WILL ALIENATE MAINSTREAM VOTERS WELL IT TURNS OUT THAT 85 OF THE JACKSON MISSISSIPPI SCHOOL SYSTEM IS BLACK AS IS THE FIRED PRINCIPAL AS ARE MANY OF THE PARENTS DEFENDING THE LITTLE PRAYER WE SUSPECT THAT MANY OF THE MORAL AND SOCIAL CONCERNS OF RELIGIOUS PEOPLE TODAY ARE COLORBLIND BUT WE ALSO SUSPECT THAT THE PEOPLE WHO WRITE ON THIS SUBJECT WILL PERSIST WITH THE STEREOTYPE INDEED WINGFIELD HIGH HAS HAD ITS SHARE OF FAMILIAR PROBLEMS IN RECENT YEARS VIOLENCE HAS GOTTEN SO BAD THAT SECURITY GUARDS NOW PATROL SOME SCHOOLS AND METAL DETECTORS HAVE BEEN BROUGHT IN TEST SCORES HAVE FALLEN AND THE SYSTEM HAS BEEN WARNED BY THE STATE NOT SURPRISINGLY SOME MISSISSIPPIANS SEE A LINK BETWEEN THE DECLINE OF THE SCHOOLS AND A MORALLY FRAZZLED SOCIETY AND BELIEVE A LITTLE MORE ATTENTION TO SPIRITUAL MATTERS MIGHT HELP STATE SENATOR MIKE GUNN IS SPONSORING LEGISLATION THAT WOULD WITHHOLD STATE FUNDING TO SCHOOLS THAT PROHIBIT VOLUNTARY PRAYER THE SUPREME COURT DECISION 30 YEARS AGO PROHIBITING SCHOOLSPONSORED PRAYER OBVIOUSLY HAS ITS UNBENDING DEFENDERS BUT WE SOMETIMES WONDER WHY THEY FEEL THEIR POSITION NEED NEVER RESPOND AS THE RULING DESCENDS TO EVER MORE ABSURD LEVELS MANY SCHOOLS AND TEXTBOOK PUBLISHERS VIRTUALLY OUTLAWED ANY REFERENCE TO GOD OR RELIGION CHRISTMAS CAROLS HAVE BEEN BANNED TEXTBOOKS THAT REFER ECUMENICALLY TO HINDUS AND BUDDHISTS DON'T MENTION CHRISTIANS OR JEWS SPANISH TEACHERS ARE TIMID ABOUT TEACHING HISPANIC CULTURE BECAUSE OF ITS CLOSE TIES TO CATHOLICISM THIS LUDICROUS EXTREMISM WHICH IS THE REAL CAUSE OF THE EVANGELICALS' ACTIVISM HAS NO DOUBT BEEN FUELED IN PART BY SCHOOL DISTRICTS' FEAR OF HAVING TO DEFEND THEMSELVES AGAINST EXPENSIVE LAWSUITS BY THE ACLU'S LAWYERS YES OF COURSE THE MISSISSIPPI BRANCH OF THE ACLU VIGOROUSLY CONTESTED THE PRAYERS AT WINGFIELD HIGH SOME PUBLIC SCHOOLS ARE RELAXING THESE STRICTURES THERE ARE ABOUT 10000 BIBLE STUDY CLUBS IN PUBLIC SCHOOLS NATIONWIDE SAYS JAY ALAN SEKULOW CHIEF COUNSEL OF PAT ROBERTSON'S AMERICAN CENTER FOR LAW AND JUSTICE MEET YOU AT THE POLE A STUDENTLED MOVEMENT THAT HOLDS PRAYER SESSIONS AROUND CAMPUS FLAGPOLES DREW THOUSANDS OF PUBLIC SCHOOL STUDENTS NATIONWIDE IN SEPTEMBER THE SUPREME COURT UNANIMOUSLY RULED IN JUNE THAT A LONG ISLAND NY SCHOOL SYSTEM COULDN'T EXCLUDE A RELIGIOUS ORGANIZATION FROM MEETING AFTER HOURS ON SCHOOL PROPERTY WHILE PERMITTING CIVIC AND RECREATIONAL GROUPS TO DO SO SECULAR SOPHISTICATES WILL STILL DISMISS SUPPORTERS OF VOLUNTARY PRAYER AS THREATS TO THE FIRST AMENDMENT THE WINGFIELD STUDENTS DON'T LOOK TO US LIKE MUCH OF A THREAT WHAT THE STUDENTS AT WINGFIELD HIGH ARE ASKING FOR IS A LITTLE RESPECT FOR THEIR BELIEFS AND THE FREEDOM TO CALL ON THEM TOGETHER IN THE MIDST OF THEIR TROUBLES TO THAT WE WILL SAY AMEN SEE RELATED LETTERS LETTERS TO THE EDITOR SAY A PRAYER IN SCHOOL BUT SILENTLY WSJ DEC 17 1993 9312060125 YY93 MM12 9312200036 931220 MARKETING BRIEF NYNEX CORP FRIDAY HOLDINGS ACQUIRES MARKETRESEARCH SUBSIDIARY NYNEX CORP SAID IT SOLD ITS BIS STRATEGIC DECISIONS MARKETRESEARCH UNIT TO FRIDAY HOLDINGS LP THE AMOUNT WASN'T DISCLOSED FRIDAY HOLDINGS IS A NEW YORK MEDIA AND COMMUNICATIONSINVESTMENT PARTNERSHIP SET UP EARLIER THIS YEAR BY NORMAN PEARLSTINE FORMER EXECUTIVE EDITOR OF THE WALL STREET JOURNAL ALONG WITH PARAMOUNT COMMUNICATIONS INC QVC NETWORK INC AND INVESTOR RICHARD E RAINWATER BIS STRATEGIC WHICH SPECIALIZES IN COMPUTER AND COMMUNICATIONSTECHNOLOGY MARKET RESEARCH HAS ABOUT 300 EMPLOYEES AND IS BASED IN NORWELL MASS NYNEX BASED IN NEW YORK SAID THIS YEAR IT WOULD EXIT THESE INFORMATIONSERVICES BUSINESSES TO FOCUS ON ITS CORE COMMUNICATIONS BUSINESS AS PART OF THIS MOVE NYNEX ALSO AGREED TO SELL ITS AGS COMPUTERS INC CONSULTING BUSINESS TO KEANE INC AN INFORMATIONSERVICES CONCERN IN BOSTON KEANE SAID IT HAS COMPLETED TERMS OF THE SALE WHICH WEREN'T DISCLOSED 9312200035 931220 BUSINESS BRIEF COOKER RESTAURANT CORP FOURTHQUARTER EARNINGS WILL FALL SHORT OF FORECASTS COOKER RESTAURANT CORP COLUMBUS OHIO SAID HIGHERTHANEXPECTED COSTS IN CONNECTION WITH OPENING NEW RESTAURANTS WOULD MEAN THE COMPANY'S FOURTHQUARTER RESULTS WOULD FALL SHORT OF ANALYSTS' PROJECTIONS ANALYSTS PREDICTED THE COMPANY WOULD EARN 14 CENTS TO 15 CENTS A SHARE BUT AS A RESULT OF STARTUP COSTS THE COMPANY PREDICTS IT WILL EARN 10 CENTS TO 12 CENTS A SHARE COOKER SAID IT INTENDS TO TAKE A ONETIME NONCASH WRITEOFF OF PREOPENING COSTS OF EIGHT CENTS TO 10 CENTS A SHARE IN THE FOURTH QUARTER THE ADJUSTMENT IS EXPECTED TO IMPROVE 1994 PERSHARE EARNINGS BY FIVE CENTS TO SEVEN CENTS THE COMPANY ALSO SAID ITS BOARD AUTHORIZED THE REPURCHASE OF UP TO 500000 COMMON SHARES REPRESENTING 7 OF SHARES OUTSTANDING 9312200034 931220 INTERNATIONAL WASHINGTON INSIGHT CLINTON'S HUMANRIGHTS RECORD SHOWS HOW PRINCIPLES OFTEN YIELD TO POLITICS BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ASSISTANT SECRETARY OF STATE FOR HUMAN RIGHTS JOHN SHATTUCK WAS SO DISTURBED BY WHAT HE SAW DURING A RECENT VISIT TO HAITI THAT HE TOLD REPORTERS THE US NEEDED TO REVIEW ITS REFUGEE POLICY THERE HIS COMMENTS SET OFF A CHAIN REACTION IN WASHINGTON HUMAN RIGHTS GROUPS HERALDED THEM AS A REJECTION OF THE US POLICY OF FORCIBLY RETURNING HAITIAN BOAT PEOPLE WHILE CLINTON ADMINISTRATION OFFICIALS SNAPPED THAT THE REPATRIATION POLICY WOULD STAND MR SHATTUCK MEANWHILE TOLD HIS SUPERIORS THAT HIS STATEMENT HAD BEEN MISINTERPRETED AND THAT HE WAS MERELY SUGGESTING THAT US CENTERS FOR PROCESSING ASYLUM APPLICATIONS IN HAITI WERE OVERBURDENED AND NEEDED TO BE IMPROVED MY CONCLUSION WAS THAT CONDITIONS IN HAITI ARE DETERIORATING AND WE NEED TO LOOK AT THE WAY IN WHICH THESE CASES ARE BEING PROCESSED HE SAYS PRESIDENT CLINTON PUT HIMSELF THROUGH A SIMILAR ROLLERCOASTER RIDE JUST A FEW WEEKS EARLIER SHOWING CONSIDERABLE POLITICAL COURAGE MR CLINTON RECEIVED FUGITIVE AUTHOR SALMAN RUSHDIE WHO HAS BEEN RUNNING FROM AN IRANIAN DEATH SENTENCE SINCE 1989 BUT AFTER SEVERAL MUSLIM COUNTRIES PROTESTED HE PLAYED DOWN THE MEETING INSISTING THAT HE HAD ONLY SPENT A COUPLE OF MINUTES WITH THE AUTHOR EVEN WITH THE BEST OF INTENTIONS MR CLINTON LIKE JIMMY CARTER BEFORE HIM IS FINDING IT HARD TO BALANCE AN IDEOLOGICAL COMMITMENT TO HUMAN RIGHTS WITH THE BAREKNUCKLE DEMANDS OF POLITICS AND POLICYMAKING THE HARDHEADED HUMANRIGHTS ORGANIZATION FREEDOM HOUSE ARGUES THAT NEGLECTING SUCH COMMITMENTS CAN BE DANGEROUS PARTICULARLY IN A WORLD WHERE REPRESSION ETHNIC CONFLICT AND DICTATORSHIP ARE AGAIN ON THE RISE ACCORDING TO FREEDOM HOUSE'S LATEST ANNUAL SURVEY THE NUMBER OF PEOPLE DENIED BASIC FREEDOMS WORLDWIDE ROSE 531 MILLION IN 1993 TO 223 BILLION THE WORST SINGLEYEAR SETBACK FOR FREEDOM SINCE THE GROUP BEGAN ITS MONITORING IN THE EARLY 1970S THE INCLINATION OF THE CLINTON ADMINISTRATION TO THREATEN FORCE AND THEN NOT FOLLOW THROUGH IN THE FORMER YUGOSLAVIA AND IN HAITI IS PARTICULARLY DANGEROUS WARNS FREEDOM HOUSE'S EXECUTIVE DIRECTOR ADRIAN KARATNYCKY IT SENDS A GREEN LIGHT TO ANYONE TEMPTED TO USE BRUTE FORCE ON BEHALF OF ABSOLUTE POWER HE CONTENDS EVEN WITH SUCH A GRIM WARNING MR KARATNYCKY AND OTHER HUMAN RIGHTS ADVOCATES STILL CONSIDER MR CLINTON A NATURAL ALLY MR KARATNYCKY GIVES THE ADMINISTRATION HIGH MARKS FOR MAKING DEMOCRACY PROMOTION A STATED FOREIGNPOLICY GOAL HE PARTICULARLY PRAISES THE WHITE HOUSE FOR ITS PLAN TO REORGANIZE AND REDIRECT FOREIGN AID TO NURTURE YOUNG DEMOCRACIES HUMAN RIGHTS WATCH IN ITS ANNUAL REVIEW CREDITS THE ADMINISTRATION FOR DEFENDING HUMANRIGHTS LAW INTERNATIONALLY FOR SEEKING A WAR CRIMES' TRIBUNAL TO DEAL WITH THE FORMER YUGOSLAVIA FOR LEADING THE CHARGE IN THE CREATION OF A NEW UNITED NATIONS HIGH COMMISSIONER FOR HUMAN RIGHTS AND FOR DARING PUBLICLY TO CRITICIZE OLD FRIENDS AND ALLIES LIKE TURKEY FOR HUMANRIGHTS ABUSES IN BOTH DOCTRINE AND RHETORIC THEY'VE BEEN QUITE GOOD SAYS KEN ROTH EXECUTIVE DIRECTOR OF HUMAN RIGHTS WATCH BUT WHEN THE GOING GETS ROUGH HE SAYS THE ADMINISTRATION OFTEN JETTISONS PRINCIPLES FOR POLITICS FOR THE SAKE OF THE MIDDLE EAST PEACE PROCESS HE SAYS THE ADMINISTRATION REVERSED AN EIGHTYEAR BAN ON SALES OF LETHAL WEAPONS TO LEBANON AND SCALED BACK ITS DEMANDS FOR THE REPATRIATION TO ISRAEL OF PALESTINIAN DEPORTEES AND HE SAYS THE US HAS EXCUSED AND TRIED TO JUSTIFY EXCESSES COMMITTED BY RUSSIAN PRESIDENT BORIS YELTSIN INCLUDING HIS SUSPENSION OF THE CONSTITUTION BANS ON SOME POLITICAL PARTIES AND BANISHMENT OF ETHNIC NONRUSSIANS FROM THE CAPITAL THE ENDSJUSTIFIESTHEMEANS CONTENTIONS THAT UNDERLIE US POLICY IN RUSSIA LOOK INCREASINGLY DUBIOUS AND DANGEROUS ACCORDING TO THE ANNUAL HUMAN RIGHTS WATCH REPORT WRITTEN BEFORE LAST WEEK'S PARLIAMENTARY ELECTION IN RUSSIA BUT DEMONSTRATING JUST HOW DIFFICULT SUCH CHOICES ARE MR KARATNYCKY OF FREEDOM HOUSE DISAGREES IF THERE'S ONE LESSON FROM THE RUSSIAN ELECTIONS HE SAYS IT'S THAT THE US SHOULD BE APPLAUDED FOR BACKING YELTSIN IT'S CLEAR THAT YELTSIN IS THE FOCAL POINT FOR REFORM 9312200033 931220 BELTWAY BOG HOW WASHINGTON FRUSTRATES CHANGE LOSS OF FAITH AS CYNICISM BECOMES AN INDUSTRY DISTRUST OF WASHINGTON GROWS DIGGING DIRT IS NOW CALLED OPPOSITION RESEARCH' VOTERS BELIEVE NO ONE HOT RHETORIC COLD CASH BY JOHN HARWOOD AND RICH JAROSLOVSKY STAFF REPORTERS OF THE WALL STREET JOURNAL WICHITA KAN IT'S ANOTHER WEEKDAY MORNING AND 1410 ON THE AM DIAL TUNES THE VOICE OF G GORDON LIDDY AND RADIO FREE DC INTO AMERICA'S HEARTLAND FROM A CRAMPED STUDIO IN SUBURBAN FAIRFAX VA THE WATERGATE CONSPIRATOR IS TELLING HIS LISTENERS HERE AND IN MORE THAN 160 OTHER CITIES JUST WHAT IS WRONG WITH WASHINGTON THERE'S PLENTY TO TALK ABOUT THE ODIOUS APPOINTMENTS OF PRESIDENT CLINTON A COMMANDER IN CHIEF WHO LOATHES THE MILITARY A JOKE ABOUT HILLARY RODHAM CLINTON'S ANATOMY A BLAST AT THE SPENDTHRIFT AND SELFABSORBED CONGRESS THERE'S NO DOUBT THAT HIS MESSAGE OF OFFICIAL WASHINGTON'S CHICANERY STUPIDITY AND SELFINTEREST IS BEING HEARD YOU GOT A BUNCH OF IDIOTS UP THERE SAYS LIDDY FAN BILL HOLDEMAN A 70YEAROLD FORMER MARINE WHO CUTS HAIR IN NEWTON 20 MILES UP THE ROAD FROM WICHITA HIS CONCLUSION AFTER LISTENING TO MR LIDDY'S ACCOUNTS OF WASHINGTON THEY OUGHTA CAN THE WHOLE DAMN BUNCH MR LIDDY'S IS JUST ONE OF A THOUSAND VOICES IN AN ACID CHORUS THAT ECHOES EACH DAY FROM WASHINGTON TO WICHITA AND THROUGHOUT THE COUNTRY IT IS THE CYNICISM INDUSTRY PERHAPS THE ULTIMATE WASHINGTON CONTRADICTION IN A TOWN THAT IS FULL OF THEM A THRIVING ENTERPRISE DEDICATED TO THE PROPOSITION THAT THE VERY CULTURE THAT IT DOES SO MUCH TO SHAPE IS FUNDAMENTALLY AND IRREDEEMABLY CORRUPT DENIGRATION AND VILIFICATION ARE NOTHING NEW IN AMERICAN POLITICS BUT NEVER BEFORE HAVE AMERICANS BEEN BOMBARDED BY SO MANY MESSAGES FROM SO MANY DIFFERENT SOURCES SEEKING TO DISCREDIT THEIR GOVERNMENT AND ITS LEADERS POLITICIANS SCORE POINTS BY ATTACKING EACH OTHER'S MOTIVES CAMPAIGN CONSULTANTS USE 30SECOND ADS AND DIRECT MAIL TO ATTACK THE INTEGRITY OF THEIR CLIENTS' OPPONENTS INTEREST GROUPS USE EVERMOREFEVERED RHETORIC TO CONVINCE THE PUBLIC THAT IT IS IMPERILED BY SINISTER FORCES A SCANDALHUNGRY PRESS CORPS AND MEDIA TALKING HEADS SERVE UP PAT INSTANT CRITIQUES OF ADMINISTRATION AND CONGRESSIONAL MISSTEPS FROM VIETNAM AND WATERGATE TO THE IRANCONTRA SCANDAL AND STAGNATING LIVING STANDARDS GOVERNMENT HAS SURELY GIVEN AMERICANS MUCH TO BE ANGRY ABOUT BUT IN THE LAST DECADE OR SO THE POLITICAL RIGHT'S TRADITIONAL SKEPTICISM TOWARD GOVERNMENT HAS MERGED WITH THE LEFT'S SAVAGE ANGER OF THE 1960S AND '70S AND HAVE TOGETHER ENVELOPED THE CENTER IN AN ALLENCOMPASSING FURY AT THE POLITICAL ESTABLISHMENT IN THIS KIND OF POISONOUS CLIMATE THERE'S AN ALMOST AUTOMATIC TENDENCY FOR POLITICAL COMBATANTS ON ALL SIDES OF EVERY ISSUE TO REACH FOR THE HARSHEST OF WEAPONS THAT'S WHERE THE CYNICISM INDUSTRY COMES IN IT DOESN'T CREATE THE ANGER BUT AMPLIFIES IT AND PLAYS IT BACK TO AMERICANS IN A FORM THAT NOT ONLY TAPS THE CYNICISM BUT FEEDS IT LOOK SOME SKEPTICISM IS HEALTHY SAYS ROBERT TEETER WHO WAS CHAIRMAN OF PRESIDENT BUSH'S UNSUCCESSFUL REELECTION CAMPAIGN IN 1992 BUT IF IT GOES TOO FAR WHICH I THINK IT HAS YOU END UP WITH NO FAITH AND TRUST IN THE GOVERNMENT AND A LOT OF OUR INSTITUTIONS ARE BASED ON PEOPLE'S FAITH IN THEM THE PRODUCT OF THE CYNICISM INDUSTRY THE CARTOONISH IMAGE OF WASHINGTON AS A PLACE WHERE ALL THE POLITICIANS ARE ON THE TAKE AND THE AVERAGE AMERICAN GETS TAKEN IS A MAJOR REASON PRESIDENT CLINTON HAS FOUND IT SO HARD TO EVEN BEGIN TO EFFECT THE CHANGE HE PROMISED IN HIS CAMPAIGN HE NOW CONFRONTS THE BITTER PROSPECT THAT THE ENDURING FRACTIOUSNESS AND NEGATIVITY OF WASHINGTON'S POLITICAL CULTURE HAS LEFT A DEEPER MARK ON A JADED ELECTORATE THAN ANYTHING HE HAS ACCOMPLISHED YET EVEN MR CLINTON WITH HIS CAMPAIGN ATTACKS ON REPUBLICAN ADMINISTRATIONS AS AIDING THE WEALTHY AT THE EXPENSE OF THE MIDDLE CLASS ISN'T IMMUNE FROM CHARGES OF FUELING THE CYNICISM PARADOXICALLY MANY OF THOSE WHO HELP TO RATCHET UP THE CYNICISM AREN'T THEMSELVES CYNICAL BUT WELLINTENTIONED ADVOCATES WHO FIND THAT INCREASING STRIDENCY IS NECESSARY TO CUT THROUGH THE DIN GENE KARPINSKI EXECUTIVE DIRECTOR OF THE US PUBLIC INTEREST RESEARCH GROUP LOBBIES FOR CAMPAIGNFINANCE REFORM TO HELP RESTORE FAITH IN THE SYSTEM BUT WHEN THE SENATE EARLIER THIS YEAR FINALLY MUSTERED THE VOTES TO PASS COMPROMISE LEGISLATION MR KARPINSKI IMMEDIATELY DECRIED THE MEASURE AS PHONY REFORM THAT ENDORSED THE CORRUPTING INFLUENCE OF SPECIAL INTEREST CONTRIBUTIONS MR KARPINSKI'S MESSAGE GOT THROUGH TO WICHITA AND ELSEWHERE THE WALL STREET JOURNAL AMONG OTHERS REPORTED HIS CRITICISM IT REINFORCED WHAT WICHITANS HAVE HEARD FROM THEIR HOMETOWN PAPER THIS YEAR WHICH CARRIED SUCH HEADLINES FROM THE WASHINGTON DEBATE AS BIG LABOR BUYS OUT CLINTON CONGRESS AND WASHINGTON CAN FIND WAYS TO TURN SOFT MONEY INTO CASH INSIDE THE BELTWAY ATTENTIONGETTING RHETORIC IS ROUTINELY DISCOUNTED AS PART OF THE PROCESS FROM WHICH HUNDREDS OF THOUSANDS OF WASHINGTONIANS LITERALLY MAKE A LIVING OUTSIDE WHERE NATIONAL POLITICS IS AN INTERMITTENT DIVERSION RATHER THAN A VOCATION IT BECOMES PART OF ONE BIG BLUR OF EVIDENCE THAT GOVERNMENT DOESN'T WORK THE BLUR IS NEVER WORSE THAN IN THE MIDST OF AN ELECTION WHERE CHARGES AND COUNTERCHARGES IN TV AND RADIO ADS PRESS RELEASES AND STORIES LEAKED TO AN EVERRECEPTIVE PRESS FLASH BY THE VOTERS AT WARP SPEED IT IS A MILIEU THAT HAROLD KWALWASSER UNDERSTANDS WELL ONCE MR KWALWASSER WAS A POLITICALLY WELLCONNECTED LOS ANGELES TRIAL LAWYER NOW HE IS A FULLTIME SPECIALIST IN OPPOSITION RESEARCH ONE OF THE HOT AREAS OF POLITICAL CONSULTING HIS JOB IS TO UNEARTH UNFLATTERING INFORMATION ABOUT OPPONENTS OF HIS CLIENTS SOME OF WHOM HAVE SORELY NEEDED AMMUNITION SUCH AS RETIRING MICHIGAN SEN DONALD RIEGLE OF KEATING FIVE FAME THE MORTICIAN IN THE KILLORBEKILLED WORLD OF POLITICS MR KWALWASSER'S BRAND OF RESEARCH HAS BECOME THE ESSENTIAL RAW MATERIAL OF CAMPAIGNING HE IS KNOWN IN THE TRADE AS THE MORTICIAN BECAUSE NOTES AN AIDE TO ONE OF HIS CLIENTS IF HE LOOKS AT YOU YOU'RE DEAD FAR FROM A QUEST FOR THE SILVER BULLET THAT CAN SINK A FOE OPPOSITION RESEARCH IS A LABORIOUS PROCESS REQUIRING SKILL AND SAVVY TO SEE POSSIBILITIES IN INFORMATION THAT MAY OR MAY NOT BE IMMEDIATELY APPARENT NEWS CLIPPINGS ARE GATHERED PUBLIC PRONOUNCEMENTS AND VOTING RECORDS ARE EXAMINED AND COMPILED IN A SEARCH FOR CONTRADICTIONS OR HYPOCRISY PEOPLE ARE DEPLOYED TO CHECK THE COUNTY COURTHOUSES AND COPY ANYTHING THAT LOOKS INTERESTINGPROPERTYTAX RECORDS DIVORCE CASES BUSINESS LITIGATION HOW YOU USE THE DATA MR KWALWASSER SAYS CAN EITHER ENHANCE THE DEBATE OR TUNNEL RIGHT THROUGH THE MUD IN ONE RACE WHICH MR KWALWASSER WON'T IDENTIFY HE UNEARTHED THE FACT THAT THE CONSERVATIVE FUNDAMENTALIST RUNNING AGAINST HIS CLIENT WAS BEING SUED BY HIS OWN MOTHER IN A FAMILY SQUABBLE THOUGH HIS CLIENT DECIDED AGAINST AIRING THE CHARGE MR KWALWASSER SAYS THERE WOULD HAVE BEEN NOTHING WRONG IN DOING SO THE FACT THAT THE SON IS OUT THERE TALKING ABOUT FAMILY VALUES AS IF HE INVENTED THE CONCEPT MAKES IT FAIR GAME TO MR KWALWASSER IT IS ALL PART OF THE ROUGH AND TUMBLE OF POLITICS LOOK I FEED THE CYNICISM HE ACKNOWLEDGES I MATCH UP CONTRIBUTIONS WITH LAWMAKERS' OUTPUT AND SOMETIMES THAT'S LEGITIMATE AND SOMETIMES IT'S NOT I WILL PLEAD GUILTY ALONG WITH EVERYBODY ELSE BUT HE ARGUES IT IS ULTIMATELY THE VOTERS' RESPONSIBILITY TO PAY MORE ATTENTION TO THE PROCESS AND DECIDE WHAT IS REALLY IMPORTANT TO THEM IF THEY WERE MORE ATTENTIVE HE SAYS MAYBE THEY WOULD BE IN A BETTER POSITION TO JUDGE FOR THEMSELVES THE VERACITY OF ANY GIVEN HURLED CHARGE AND THE CHARGE ITSELF WOULDN'T SO EASILY BECOME THE ONLY FACT THEY KNOW ABOUT A POLITICIAN OR ISSUE IT'S NOT THAT THEIR CYNICISM IS ENTIRELY WITHOUT FOUNDATION HE SAYS BUT PEOPLE HAVE COMPLETELY LOST THE SENSE OF ALL THE DILIGENCE AND HARD WORK THAT GOES ON IN WASHINGTON IT IS A COMPLAINT THAT A NUMBER OF POLITICIANS ECHO AMONG THEM WICHITA'S OWN CONGRESSMAN DEMOCRAT DAN GLICKMAN I'M VERY WORRIED ABOUT THE QUALITY OF OUR DEMOCRACY MR GLICKMAN SAYS POLITICAL FREEDOMS CANNOT SURVIVE WHERE PEOPLE QUESTION THE BASIC INTEGRITY OF OUR GOVERNMENTAL STRUCTURES IT WILL BREAK DOWN AT SOME POINT YET MR GLICKMAN NEED LOOK ONLY AS FAR AS HIS OWN REELECTION RACE LAST YEAR TO SEE WHY VOTERS ARE SO ANGRY AT THE PROCESS THE CAMPAIGN PITTED THE EIGHTTERM INCUMBENT WHO IS CONSIDERED AN ACTIVE AND CONSCIENTIOUS LEGISLATOR AGAINST A REPUBLICAN STATE SENATOR NAMED ERIC YOST WHO HAS TAKEN CONTROVERSIAL BUT PRINCIPLED STANDS ON SUCH ISSUES AS REFORM OF GOVERNMENTENTITLEMENT PROGRAMS BY THE END OF THE CAMPAIGN THE IMAGES OF BOTH WERE BARELY RECOGNIZABLE EACH CANDIDATE EMPLOYED WASHINGTONBASED OPPOSITION RESEARCHERS TO SCRUTINIZE THE OTHER AND THE RESULTS DANCED ACROSS WICHITA TELEVISION SCREENS THE ADVERTISEMENTS PRODUCED BY MR YOST'S MEDIA CONSULTANT DEPICTED MR GLICKMAN AS A PINOCCHIOLIKE LIAR WHO USED TAX FUNDS AND 12 MILLION IN SPECIALINTEREST MONEY TO TRAVEL AND SUBSIDIZE HIS LIFESTYLE FROM MR GLICKMAN'S MEDIA MEISTER WICHITANS RECEIVED AN IMAGE OF MR YOST AS AN EXTREMIST WHO DID THE BIDDING OF SPECIAL INTERESTS INCLUDING HIS OWN BY VOTING TO QUADRUPLE STATE LEGISLATIVE PENSIONS FOR MOST AMERICANS WHOSE BUSY LIVES PERMIT ONLY FLEETING ATTENTION TO POLITICS DISCERNING MORECOMPLEX TRUTHS FROM THE FIREANDRESPONSE OF WASHINGTONSTYLE COMBAT ISN'T EASY I HEAR BITS AND PIECES AND TRY TO PUT IT ALL TOGETHER SAYS DAN DRAPER AN AIR FORCE MECHANIC DOWNING AN AFTERNOON BEER AT CHARLIE'S ON THE CITY'S SOUTHEAST SIDE BUT HE FEARS WHAT WE HEAR ON TV IS JUST EYEWASH BULL WHAT DO WE HAVE TO GO BY THE ELECTION RESULTS MR GLICKMAN SPENT 1 MILLION AND STILL WON WITH JUST 52 OF THE VOTE TO 42 FOR MR YOST AND 6 FOR A LIBERTARIAN CANDIDATE OFFERED A HINT OF WICHITANS' DISENCHANTMENT NEGATIVE CAMPAIGNING IS ONE OF THE THINGS THAT GIVE POLITICS A BAD NAME SAYS ADVERTISING EXECUTIVE KERRY GRAY ADDS NURSINGHOME PROPRIETOR CHARLES WERTH IT DESTROYS ANY THOUGHT THAT WHAT YOU MIGHT BE DOING CAN MAKE A DIFFERENCE A GENERATION AGO AMERICANS COULD AT LEAST EXPECT THAT THE BITTER WARFARE OF THE CAMPAIGN WOULD TURN CALM BETWEEN ELECTIONS BUT NOW THE NEWS AND COMMUNICATIONS REVOLUTIONS PERMIT RIVAL POLITICAL FORCES TO WAGE A PERMANENT CAMPAIGNWITH PREDICTABLE CONSEQUENCES FOR PUBLIC CONFIDENCE PRESIDENT REAGAN'S 1987 NOMINATION OF ROBERT BORK TO THE SUPREME COURT WAS A WATERSHED IN THE DEVELOPMENT OF THE PERMANENT CAMPAIGN AS CONGRESSIONAL DEMOCRATS AND LIBERAL INTERESTS SEIZED ON CONTROVERSIAL STATEMENTS BY THE CONSERVATIVE JURIST IN A FEVERED MEDIA CAMPAIGN TO DEFEAT HIM NOW THAT DEMOCRATS HOLD THE WHITE HOUSE CONSERVATIVES HAVE EAGERLY LAUNCHED ATTEMPTS AT BORKING LEFTLEANING CLINTON ADMINISTRATION NOMINEES SUCH SHRILL WARFARE HAS EXTENDED TO ALL MANNER OF POLICY DISPUTES AS WELL FROM GAYS IN THE MILITARY TO TAXES TO SOCIAL SECURITY CONSIDER THE NERVE CENTER AS STEVEN ALLEN CALLS IT WHERE HE EARNS HIS LIVING AS COMMUNICATIONS DIRECTOR FOR THE UNITED SENIORS ASSOCIATION THE ORGANIZATION WHICH FILLS A GROUNDFLOOR OFFICE SUITE IN WASHINGTON'S VIRGINIA SUBURBS HAS CHURNED OUT SOME EIGHT MILLION PIECES OF DIRECT MAIL THIS YEAR THAT APPEAL TO THE SENTIMENTS FEARS AND CHECKBOOKS OF AMERICA'S HUGE ELDERLY POPULATION FOUNDED BY CONSERVATIVE DIRECTMAIL PIONEER RICHARD VIGUERIE UNITED SENIORS STANDS OUT FOR ITS HIGHOCTANE MESSAGE OF DISTRUST AND DISDAIN FOR A CORRUPTED WASHINGTON ESTABLISHMENT JUST WEEKS INTO MR CLINTON'S TERM ONE OF ITS MISSIVES WARNED THAT WASHINGTON'S POWER ELITE AIMED TO CUT SOCIAL SECURITY TO PAY FOR OUTRAGEOUS SPENDING BOONDOGGLES BENEFITING THEIR FAVORITE SPECIAL INTEREST GROUPS ONE 1992 LETTER LAST YEAR DECLARED FLATLY THE POLITICIANS IN WASHINGTON HAVE 'STOLEN' THE SOCIAL SECURITY TRUST FUND THAT'S RIGHT EVERY PENNY IS GONE WHILE IT'S TRUE THAT SOCIAL SECURITY TAXES AREN'T HELD IN A BANK ACCOUNT AWAITING THE CONTRIBUTOR'S RETIREMENT THE TRUST FUND DOES EXIST ON THE BOOKS OF THE GOVERNMENT AND IS INVESTED IN TREASURY SECURITIES THE APPEAL OF THAT MESSAGE SHOWS UP ON THE BOTTOM LINE SOME 55 MILLION IN 1992 REVENUE ACCORDING TO THE GROUP'S ANNUAL REPORT AND IF THAT PRODUCES HARSH CRITICISM ON CAPITOL HILL WHERE LEGISLATORS ACCUSE UNITED SENIORS AND SIMILAR GROUPS OF PREYING ON THE UNKNOWING ELDERLY MR ALLEN IS UNAPOLOGETIC MEMBERS OF CONGRESS WANT TO SEND OUT THEIR LITTLE NEWSLETTERS AND HAVE THAT BE EVERYTHING PEOPLE KNOW ABOUT THEM SAYS THE 37YEAROLD MR ALLEN AN AMIABLE BALDING ALABAMAN WHO SERVED AS A PRESS SECRETARY FOR FORMER REPUBLICAN SEN JEREMIAH DENTON BUT THE MARKET TESTS THAT UNITED SENIORS CONDUCTS BEFORE MAILING EVERY LETTER FIND SOMETHING DIFFERENT IF YOU'RE TELLING VOTERS ABOUT CONGRESS VOTING ITSELF A PERK OR VOTING A PAY RAISE IN THE MIDDLE OF THE NIGHT OR PASSING A HIDDEN TAX THAT'S WHAT PEOPLE LOVE FINDING OUT ABOUT MR ALLEN REJECTS THE NOTION THAT HE IS HELPING TO DEEPEN A PARALYZING PUBLIC CYNICISM HE LIKENS THE ISSUE TO ASKING REVOLUTIONARY PAMPHLETEER THOMAS PAINE DO YOU THINK YOUR WRITINGS ARE INCREASING CYNICISM TOWARD THE BRITISH GOVERNMENT FOR MANY ELDERLY PEOPLE IN WICHITA AS ELSEWHERE THE LINKAGE OF WASHINGTON CORRUPTION WITH SOCIAL SECURITY FEARS IS A POTENT ONE I DON'T TRUST THE GOVERNMENT SAYS KAY FARMER 69 WHO WORRIES THAT SOCIAL SECURITY MIGHT NOT BE THERE FOR HER OWN CHILDREN RETIRED CORN FARMER TED ARTZ 75 ADDS THAT POLITICIANS WANT YOU TO THINK THEY'RE HONEST BUT HE SAYS HE WAS CONDITIONED EARLY TO DISTRUST THEM HE RECALLS HERBERT HOOVER AS THE BIGGEST THIEF MR ARTZ WHO HAS ANSWERED UNITED SENIORS SOLICITATIONS WITH MONEY WONDERS WHO ELSE ARE YOU GOING TO BELIEVE THE GROUP'S MESSAGE OF OFFICIAL DECEPTION AND BUNGLING IS UNDERSCORED REPEATEDLY IN THE MAINSTREAM MEDIA BY TV AND PRINT JOURNALISTS AND COMMENTATORS LIKE UNITED SENIORS THE MEDIA ANXIOUS TO UNEARTH ANOTHER WATERGATE HAVE THEIR OWN INCENTIVE FOR PREPARING REPORTS THAT APPEAL TO VOTERS' DISTRUST OF THEIR GOVERNMENT AND THE MULTIPLICATION OF THOSE MESSAGES ONLY DEEPENS THAT DISTRUST IN 1970 THERE WAS JUST ONE '60 MINUTES' SAYS VETERAN DEMOCRATIC POLLSTER PETER HART NOW THERE ARE MANY SUCH TV SHOWS AND EVERY ONE IS GOING TO SHOW YOU AN OUTRAGE IN THE SYSTEM IF YOU CONSTANTLY SEE OUTRAGES IT'S PRETTY EASY TO BELIEVE THERE'S NOTHING RIGHT WITH THE SYSTEM AFTER STUDYING MORE THAN 10000 TELEVISION AND NATIONAL NEWSPAPER STORIES SYRACUSE UNIVERSITY POLITICAL SCIENTIST THOMAS PATTERSON FOUND THAT POLITICAL COVERAGE HAS GROWN STRIKINGLY MORE NEGATIVE DURING THE PAST THREE DECADES THE JOURNALIST IS ALWAYS LOOKING OVER THE POLITICIAN'S SHOULDER SAYING DON'T TRUST WHAT THIS GUY IS SAYING' MR PATTERSON SAYS HE CONCLUDES WE UNDERVALUE THE QUALITY OF OUR POLITICAL LEADERSHIP AND THE NEWS IS A MAJOR PART OF THAT POLITICIANS AND THE PRESS HAVE BEEN AT EACH OTHER'S THROATS FOR AS LONG AS THEY HAVE BEEN AROUND BUT THE RISE OF THE NEW MEDIA TELEVISION TALK AND INTERVIEW SHOWS AND RADIO PROGRAMS SUCH AS MR LIDDY'S AND RUSH LIMBAUGH'S HAVE WROUGHT A PROFOUND CHANGE BLUNT COMMENTS AND BARBED OBSERVATIONS GRAB ATTENTION NUANCE AND AMBIGUITY DON'T MR LIDDY FOR ONE SEES HIS ROLE AS CUTTING THROUGH THE OVERGROWTH OF VERBIAGE IN WASHINGTON TO EXPLAIN TO HIS LISTENERS WHAT'S REALLY GOING ON IF THAT BREEDS CYNICISM HE SAYS SO BE IT THE CYNICISM IS JUSTIFIED INCREASINGLY NATIONALLY THE RANKS OF THE DISILLUSIONED HAVE FOUND THEIR VOICE IN ROSS PEROT AND IN HIS WAKE THOUSANDS OF PEROT DISCIPLES HAVE COMMITTED THEMSELVES TO SPREADING HIS ANTIWASHINGTON MESSAGE THAT'S WHERE MARK MARNEY COMES IN GALVANIZED BY MR PEROT WHO RECEIVED A HEFTY 27 OF THE 1992 PRESIDENTIAL VOTE IN WICHITA AND SURROUNDING COUNTIES MR MARNEY 39 THE OWNER OF A WICHITA TRAVEL AGENCY HELPED ORGANIZE A LOCAL CHAPTER OF MR PEROT'S UNITED WE STAND AMERICA THE NEWSLETTER HE NOW MAILS TO SOME 6600 WICHITAAREA MEMBERS IS A BIPARTISAN COLLECTION OF WASHINGTON OUTRAGES WASHINGTON WATCHDOG GROUPS AND CONSERVATIVE PUBLICATIONS SUPPLY STATISTICAL TIDBITS SUCH AS A GALLUP FINDING THAT ONLY 11 OF AMERICANS FEEL THAT CONGRESSMEN HAVE HIGH ETHICAL STANDARDS AND THE ASSERTION THAT 1400 PUBLIC OFFICIALS ARE NOW UNDER INDICTMENT ON CORRUPTION CHARGES A WASHINGTON WASTE COLUMN NOTES THAT TAXPAYERS STILL FINANCE PENSIONS FOR FORMER HOUSE SPEAKERS CARL ALBERT JIM WRIGHT AND TIP O'NEILL EVEN THOUGH THEY NO LONGER WORK FOR US NOT THAT THEY EVER DID THE REPEATED NEGATIVE MESSAGE TO THE PUBLIC PROBABLY DOES MAKE THEM MORE CYNICAL BUT MAYBE THEY NEED TO BE SAYS MR MARNEY WHO HOPES DEEPER DISILLUSIONMENT WILL ROUSE OTHER WICHITANS FROM APATHY TO ACTION WHEN MR PEROT ANNOUNCED HIS AVAILABILITY FOR PRESIDENT LAST YEAR ON LARRY KING LIVE MR MARNEY FOUND VOICE FOR HIS DISCONTENT NOW HE HELPS THE MAVERICK TEXAN SPREAD THE BAD WORD ABOUT LEADERS IN WASHINGTON FROM PRESIDENT CLINTON TO WICHITA'S OWN MR GLICKMAN IF YOU'RE NOT OUTRAGED HE LIKES TO SAY YOU'RE NOT PAYING ATTENTION BUT SOME WICHITANS HAVE BECOME SO DISGUSTED THEY DON'T WANT TO PAY ATTENTION THE DISENCHANTMENT WITH CONGRESS AND WASHINGTON IS SO DEEP SAYS DAVID AWBREY EDITORIALPAGE EDITOR OF THE WICHITA EAGLE THAT WE BASICALLY HAVE DECIDED WE DO NOT CARE ABOUT WASHINGTON DC SO MR AWBREY 45 A ONETIME CAMPUS ACTIVIST OF MR CLINTON'S GENERATION HAS CURTAILED WASHINGTONBASED POLITICAL COLUMNS IN FAVOR OF A LOCALLY PRODUCED FEATURE CALLED COMMUNITY CONNECTION WHAT WE'RE TRYING TO DO IS BUILD COMMUNITY HERE HE SAYS BUT EVEN THAT ISN'T EASY ERODING FAITH IN GOVERNMENT HAS CASCADED DOWN FROM WASHINGTON TO THE LOCAL LEVEL MAYOR ELMA BROADFOOT ELECTED JUST EIGHT MONTHS AGO ON A CLINTONESQUE PROMISE OF CHANGE RESPONDED TO RISING CRIME FEARS BY PROPOSING A QUARTERCENT INCREASE IN THE CITY SALES TAX TO HIRE 125 NEW POLICE OFFICERS AND ESTABLISH TWO NEW POLICE SUBSTATIONS VOTERS SAID NO MS BROADFOOT EXPLAINS THEY DIDN'T TRUST US 9312200032 931220 WORLD MARKETS TAIWAN FUNDS PROVIDE AN ENTREE FOR INVESTORS LADEN WITH CASH TO PLAY A PROMISING MARKET BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG WHEW SAYS PATRICK CHIM CALCULATING THE SIZE OF THE FORMOSA FUND WHICH HE MANAGES FOR KWANG HUA SECURITIES INVESTMENT & TRUST CO THAT'S HIGHER THAN I THOUGHT IN LESS THAN A MONTH HIS FUND HAS RAISED A FRESH 180 MILLION FROM FOREIGN INVESTORS QUICKLY INVESTED IT IN TAIWANESE STOCK AND DOUBLED ITS MARKET CAPITALIZATION MR CHIM'S NEW SHAREHOLDERS ARE MOSTLY OTHER INSTITUTIONS KEEN TO JUMP ON ONE OF THE FEW EASY ROADS INTO TAIWAN'S SOARING MARKET THE TAIWAN WEIGHTED PRICE INDEX WHICH ENDED FRIDAY AT 527476 OFF 5711 IS UP 277 SINCE OCTOBER BUT INDIVIDUAL INVESTORS WITH A LOT OF FAITH IN THE ISLAND'S STOCKS AND A HEFTY WAD OF CASH CAN PLAY TAIWAN TOO RIDING TAIWAN'S RALLY SHOULD BE PROFITABLE IN COMING MONTHS ANALYSTS SAY GETTING ON BOARD IS THE TOUGH PART TAIWAN AUTHORITIES HAVE RAISED ROADBLOCKS TO KEEP FOREIGN INDIVIDUALS OUT OF STOCKS FEARING THAT A WAVE OF FOREIGN INVESTMENT WOULD SEND THE NEW TAIWAN DOLLAR SOARING TO HEIGHTS THAT WOULD MAKE THE ISLAND'S EXPORTS UNCOMPETITIVE ONLY THE WORLD'S 500 LARGEST BANKS ALONG WITH HUGE INSURANCE COMPANIES ASSETMANAGEMENT COMPANIES AND FOREIGN BROKERS CAN GET APPROVAL TO BUY SHARES DIRECTLY AND EVEN THOSE FOREIGN INSTITUTIONS CAN HOLD NO MORE THAN 5 BILLION OF TAIWAN STOCK AMONG THEM BUT FOREIGN INVESTORS CAN BUY INTO SEVEN FUNDS THAT SPECIALIZE IN TAIWAN INVESTMENTS STOCK EXCHANGES IN NEW YORK LONDON AND HONG KONG EACH LIST TWO OF THEM AND ONE IS UNLISTED THEY TEND TO BE EXPENSIVE SHARES OF THE LONDONLISTED FORMOSA FUND TRADE IN BLOCKS OF ABOUT 7800 AND UNITS OF THE HONG KONGLISTED FORMOSA GROWTH FUND ALSO MANAGED BY MR CHIM ARE AVAILABLE ONLY IN UNITS OF ABOUT 11800 MOST ALSO TRADE AT PRICES HIGHER THAN THEIR NET ASSET VALUES SO WHY BOTHER BECAUSE TAIWAN FUNDS ARE AMONG THE FEW ENTREES TO A BULLRUN THAT MANY ANALYSTS EXPECT WILL HIGHLIGHT ASIA'S CELEBRATIONS OF WESTERN AND CHINESE NEW YEARS AND THEIR HOLDINGS REPRESENT A WIDER SWEEP OF TAIWAN'S ECONOMY THAN DO THE GLOBAL DEPOSITARY RECEIPTS OF TAIWAN COMPANIES AVAILABLE ON FOREIGN STOCK EXCHANGES GDRS ARE CERTIFICATES LISTED ABROAD THAT IN THIS CASE REPRESENT TAIWANLISTED STOCK JUST LAST WEEK SALOMON BROTHERS ADVISED ITS CLIENTS TO BUY TAIWAN EQUITIES I JUST THINK THERE IS A GOOD LIKELIHOOD THAT THE WEIGHTED PRICE INDEX COULD BE AROUND 6000 BY CHINESE NEW YEAR ON FEB 10 SAYS TIMOTHY MOE HEAD OF ASIAN RESEARCH FOR THE FIRM IN CHOOSING A TAIWAN FUND INVESTORS MUST BE WARY OF THEIR MANAGERS' CONSERVATIVISM MANY HOLD CASH EVEN WHEN STOCKS RALLY SAYS LINDSAY JONES AN ANALYST AT JARDINE FLEMING SECURITIES LTD IN HONG KONG THE NEW YORKLISTED ROC TAIWAN FUND INC FOR INSTANCE WAS STILL 80 IN CASH ON DEC 10 ACCORDING TO ITS MOST RECENTLY RELEASED ASSET ALLOCATIONS MONITORED BY JARDINE FLEMING THE FORMOSA FUND IS 17 IN CASH AND THE HONG KONGLISTED NEW TAIPEI FUND IS 20 IN CASH THE FORMOSA GROWTH FUND IS 22 IN CASH MR CHIM'S FORMOSA GROWTH FUND WITH A MARKET CAPITALIZATION OF 428 MILLION IS MORE AGGRESSIVE THAN THE FORMOSA FUND LIKEWISE THE NEW TAIPEI FUND WITH 924 MILLION CAN BE VERY AGGRESSIVE IN MARKETTIMING AND IN CHOOSING THE INDUSTRIALJ SECTOR TO WHICH IT WANTS EXPOSURE SAYS DAVID YU A SENIOR VICE PRESIDENT AT NATIONAL INVESTMENT TRUST CO IN TAIPEI ALL THREE FUNDS ARE MOST HEAVILY WEIGHTED TO ELECTRONICS COMPANIES THE ONLY SECTOR WHICH IS REALLY PROMISING SAYS CHARLOTTE LEE HEAD OF THE INTERNATIONAL DEPARTMENT OF CAPITAL SECURITIES CORP ALSO IN TAIPEI TOKYO EQUITIES GAINED 15 FRIDAY WITH THE BENCHMARK NIKKEI INDEX FINISHING ABOVE 18000 FOR THE FIRST TIME IN A MONTH LONDON STOCKS ROSE IN EXTREMELY ACTIVE TRADING TO THE THIRD RECORD HIGH IN A ROW PARIS PRICES SURGED 17 HONG KONG STOCKS RALLIED 22 TO A RECORD ON MOMENTUM FROM THE PREVIOUS DAY'S JUMP WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11121 UP 078 REFLECTING INCREASES IN MARKETS IN ALL REGIONS HOMECONSTRUCTION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14036 UP 317 OR 231 WITH METROPLEX OF MALAYSIA POSTING AN 1119 GAIN IN ITS LOCAL CURRENCY OILFIELD EQUIPMENT STOCKS TRAILED AT 9989 DOWN 044 OR 044 WITH NOWSCO WELL SERVICE OF CANADA SLIDING 513 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SURGED 30013 POINTS THURSDAY RALLIED 26263 TO 1805191 JUST A FRACTION OFF THE DAY'S HIGH IT LAST CLOSED ABOVE 18000 ON NOV 18 ON MONDAY THE NIKKEI FELL 25803 POINTS TO CLOSE THE MORNING SESSION AT 1779388 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 270 MILLION SHARES DOWN FROM 3349 MILLION SHARES A DAY EARLIER GAINING ISSUES OUTNUMBERED DECLINING ISSUES 682326 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH CLIMBED 2186 POINTS THURSDAY ADVANCED 1626 OR 11 TO 149047 THE NIKKEI ADVANCED BECAUSE OF BUYING BY A HUGE NEW INVESTMENT TRUST FUND IN THE NEW NIKKEI 300 INDEX AND BY DEALERS ON RUMORS THAT JAPAN WILL ABOLISH SOME SECURITIES TAXES THE NIKKEI 225 OUTPERFORMED THE TOPIX AND SMALLER STOCKS BECAUSE OF THE BIG FUND'S PURCHASES OF NIKKEI 300 SHARES AMOUNTING TO 10 OF TOTAL VOLUME 155 STOCKS ARE IN BOTH INDEXES IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX CLIMBED 259 POINTS TO 33371 THOUGH PROFITTAKING KNOCKED IT DOWN FROM A 396POINT GAIN THE FT 30STOCK INDEX ROSE 91 POINTS TO 25051 VOLUME WAS 102 BILLION SHARES COMPARED WITH 9232 MILLION SHARES A DAY EARLIER DESPITE FINISHING BELOW THE DAY'S HIGHS PRICES WERE WELL SUPPORTED BY CASHRICH FUNDS AND RESISTED FURTHER PROFITTAKING THE FT 100 LAST WEEK ADVANCED 23 IN FRANKFURT STOCKS ROSE HELPED BY EXPIRATIONS OF MONTHLY AND QUARTERLY CONTRACTS ON THE FUTURES AND OPTIONS EXCHANGE THE DAX 30STOCK INDEX ADDED 1357 POINTS TO 215102 ALSO THE DAY'S HIGH IN PARIS THE RALLY CAPPED A YOYO WEEK IN A BELATED REACTION TO THE CONCLUSION OF NEGOTIATIONS ON LIBERALIZED WORLD TRADE AND TO STRONG US STOCKS AND ECONOMIC DATA IN AMSTERDAM SHARES GOT A LIFT FROM THE GLOBAL TRADE ACCORD AND A PUSH BY PROFESSIONALS OF ISSUES IN THE INDEX TIED TO THE EXPIRATION OF DECEMBER OPTIONS CONTRACTS IN MEXICO CITY STOCKS RALLIED 13 TO A RECORD DESPITE LITTLE NEWS TO INFLUENCE DEALINGS THOUGH LAST WEDNESDAY'S INTERESTRATE CUTS ADDED FUEL TO BULLISH SENTIMENT BUY ORDERS WERE STRONG FROM BOTH DOMESTIC AND FOREIGN INVESTORS IN HONG KONG SHARES' BULL RUN CONTINUED WITH THE MAIN INDEX SOARING 63 IN THE PAST TWO SESSIONS INCREASING THIS YEAR'S GAIN TO 92 THE MARKET REMAINED SOLIDLY SUPPORTED BY FOREIGN BUYING IN MANILA EQUITIES CLIMBED TO A RECORD HIGH FOR THE SECOND DAY IN HEAVY TRADING ON AGGRESSIVE POSITIONING FOR 1994 IN SEOUL PRICES ADVANCED FOR THE FOURTH CONSECUTIVE SESSION LED BY BLUE CHIPS AND SET A NEW 1993 HIGH THOUGH LOSING ISSUES OUTNUMBERED WINNING ISSUES BUT IN SINGAPORE PROFITTAKING SNAPPED A SIXDAY RECORDBREAKING RALLY AS EQUITIES DECLINED 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 9312200031 931220 BUSINESS BRIEF JAPAN TOBACCO INC MINISTRY OF FINANCE DROPS PLANS TO LIST FIRM'S SHARES THE MINISTRY OF FINANCE SAID IT DROPPED PLANS TO LIST JAPAN TOBACCO INC SHARES ON THE STOCK MARKET IN THE FISCAL YEAR ENDING MARCH 31 CONCEDING THAT A LARGE OFFERING PROBABLY WOULDN'T SUCCEED UNDER RECENT VOLATILE MARKET CONDITIONS THE DELAY IS LIKELY TO MEAN THE ISSUE WON'T COME TO MARKET FOR AS LONG AS A YEAR IN LATE OCTOBER THE JAPANESE GOVERNMENT'S OFFERING OF EAST JAPAN RAILWAY CO TURNED INTO A FIASCO AS THE STOCK FIRST SURGED 58 IN THE FIRST DAY OF TRADING BUT THEN PLUNGED THE NEXT DAY AS THE STATEOWNED COMPANY PUMPED ADDITIONAL SHARES INTO THE MARKET THE MARKET AS A WHOLE TUMBLED AND THE PLAN TO ATTRACT SMALL INVESTORS BACKFIRED IN EXPLAINING THE POSTPONEMENT OF THE JAPAN TOBACCO OFFERING THE MINISTRY SAID THE PLAN IS DIFFICULT WHEN COMPREHENSIVELY CONSIDERING THE ADVERSE EFFECTS OF SELLING AND LISTING OF A GREAT AMOUNT OF THE SHARES HELD BY THE GOVERNMENT ON THE MARKET AT THE CURRENT STAGE JAPAN TOBACCO APPLIED FOR A STOCK LISTING JULY 27 AFTER OBTAINING A GOVERNMENT GOAHEAD IN JUNE 9312200030 931220 BUSINESS BRIEF WAINOCO OIL CORP COMPANY EXPECTS TO POST PROFIT FOR FOURTH QUARTER WAINOCO OIL CORP SAID IN HOUSTON THAT IT EXPECTS TO POST A PROFIT FOR THE FOURTH QUARTER COMPARED WITH A LOSS A YEAR EARLIER IT CITED SIGNIFICANTLY HIGHER PROFIT IN OCTOBER AND NOVEMBER IN THE 1992 FOURTH QUARTER THE COMPANY HAD A NET LOSS OF 24 MILLION OR 11 CENTS A SHARE ON REVENUE OF 935 MILLION THE COMPANY SAID THAT HIGHER REFINERY PROFIT MARGINS IN OCTOBER AND NOVEMBER ACCOUNT FOR THE INCREASED PROFIT WAINOCO SAID IT HAD TOTAL NET INCOME FOR THOSE TWO MONTHS OF 98 MILLION BUT THE COMPANY SAID IT EXPECTS TO POST A NET LOSS IN DECEMBER BECAUSE OF THE PLUNGE IN OIL PRICES AND DECLINING REFINING MARGINS A COMPANY SPOKESWOMAN SAID IT WAS TOO EARLY TO TELL HOW BIG IT WOULD BE AND WOULD DEPEND ON THE DIRECTION OF OIL PRICES THE REST OF THE MONTH 9312200029 931220 MARKETING BRIEF QUAKER OATS CO COMPANY SAYS GENERAL MILLS MAKES MISLEADING CLAIMS QUAKER OATS CO ACCUSING GRANOLABAR RIVAL GENERAL MILLS INC OF MAKING MISLEADING PRODUCT CLAIMS OBTAINED A COURT ORDER HALTING DISTRIBUTION OF A NEW BAR BY GENERAL MILLS A COOK COUNTY ILL CIRCUIT COURT JUDGE ISSUED A TEMPORARY RESTRAINING ORDER AFTER QUAKER WHICH IS BASED IN CHICAGO COMPLAINED THAT THE WRAPPER AND ADVERTISING FOR GENERAL MILLS' NATURE VALLEY LOW FAT CHEWY GRANOLA BARS OVERSTATE THE AMOUNT OF FAT IN SOME OF QUAKER'S CHEWY GRANOLA BARS QUAKER SAID THE COMPARISON IS BASED ON INGREDIENT INFORMATION ON OBSOLETE PACKAGING BUT A SPOKESMAN FOR GENERAL MILLS BASED IN MINNEAPOLIS SAID OUR BAR CONTAINS SIGNIFICANTLY LESS FAT THAN THEIRS HOWEVER THEIRS IS LABELED AND CALLED THE LEGAL ACTION A DISSERVICE FROM A CONSUMER STANDPOINT A HEARING ON QUAKER'S REQUEST FOR A PRELIMINARY INJUNCTION BARRING FURTHER SHIPMENTS WILL BE HELD WEDNESDAY 9312200028 931220 IBM UNIT IS LIKELY TO ANNOUNCE DELAY OF MONTHS FOR UPDATED PS/2 MODELS BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL IBM PC CO THIS WEEK IS EXPECTED TO ANNOUNCE THAT TECHNICAL PROBLEMS WILL FORCE A MONTHSLONG DELAY IN DELIVERING UPDATED VERSIONS OF TWO TOPOFTHELINE PS/2 MODELS DISAPPOINTING SOME OF ITS BIGGEST CORPORATE ACCOUNTS WHICH HAD ORIGINALLY BEEN PROMISED THE PRODUCT LAST FALL THE DELAY IS ANOTHER BLOW TO IBM'S BIGGEST CUSTOMERS WHO HAVE ALREADY BEEN FRUSTRATED BY TIGHT SUPPLY OF THE PREMIUM MODELS AND NOW WILL HAVE TO SETTLE FOR EVEN WORSE DELAYS OR SUBSTITUTIONS OF OTHER IBM MODELS UNTIL THE GLITCH CAN BE FIXED AS A RESULT IBM RISKS LOSING MARKET SHARE OF ONE OF ITS HIGHESTMARGIN PCS TO RIVAL CONVENTIONAL BRANDS FROM COMPAQ COMPUTER CORP AND DELL COMPUTER CORP AND POSSIBLY TO IBM'S OWN LOWERMARGIN VALUEPOINT LINE IT'S DEJA VU ALL OVER AGAIN RICHARD ZWETCHKENBAUM OF MARKETRESEARCH FIRM INTERNATIONAL DATA CORP SAID OF THE NEW DELAY HE NOTED THAT THE TOP OF THE PS/2 SERIES HADN'T RECEIVED A TECHNOLOGY UPDATE SINCE ITS INTRODUCTION MORE THAN A YEAR AGO THE TECHNICAL GLITCH IN THE TWO PS/2 PRODUCTS KNOWN AS MODELS 76 AND 77 ARISES FROM AN IBMDESIGNED CHIP THAT WAS SUPPOSED TO CONSOLIDATE FUNCTIONS AND IMPROVE PERFORMANCE INDUSTRY EXECUTIVES FAMILIAR WITH THE PROBLEM SAID THE IBM CHIP FAILED TO WORK PROPERLY IN ITS FINAL TESTING PHASE THE CURRENT VERSIONS OF MODELS 76 AND 77 ARE USED MOSTLY IN CORPORATE NETWORKS AND SELL FOR 2400 TO 4000 OFTEN ACCOMPANIED BY LUCRATIVE SERVICE CONTRACTS FOR IBM THESE CUSTOMERS ARE IN A BIND NOW BECAUSE THEY HAVE COMMITTED ENTIRE SYSTEMS TO THE SPECIAL IBM ARCHITECTURE AND CAN'T EASILY MAKE A SWITCH TO OTHER BRANDS INSIDE IBM EXECUTIVES ARE WORRIED ABOUT ANGERING SUCH IMPORTANT CUSTOMERS THE COMPANY IS EXPECTED TO STEP UP PRODUCTION OF THE OLD MODELS WHICH HAVE THEMSELVES BEEN IN SHORT SUPPLY UNTIL THE CHIP CAN BE FIXED INTRODUCED IN 1987 THE PS/2 SERIES FEATURES A PROPRIETARY DATAHANDLING BUS KNOWN AS THE MICRO CHANNEL IBM SAYS IT HAS SOLD 14 MILLION UNITS BUT AFTER INTERNATIONAL BUSINESS MACHINES CORP FORMED ITS SPINOFF PC COMPANY JUST OVER A YEAR AGO THE SOMERS NY SUBSIDIARY INTRODUCED THE INDUSTRYSTANDARD VALUEPOINT LINE AND FOUND RAPID SUCCESS LEADING SOME ANALYSTS TO SPECULATE THAT THE PS/2 HAS NO FUTURE WITHIN ONE YEAR OF THE VALUEPOINT INTRODUCTION THAT SERIES HAS DRAMATICALLY OVERTAKEN THE PS/2 LINE AS A PERCENTAGE OF TOTAL SALES FOR THE PC COMPANY VALUEPOINT NOW ACCOUNTS FOR 40 OF TOTAL UNIT SALES WHILE PS/2 HAS DROPPED TO LESS THAN 30 FROM 41 A YEAR AGO ACCORDING TO INTERNATIONAL DATA ESTIMATES MICRO CHANNEL'S VOLUME MICRO CHANNEL IS A BIT OUT THERE ON ITS OWN SAID MR ZWETCHKENBAUM SPEAKING OF THE PS/2 SERIES EVEN AT IBM IT REPRESENTS A SMALLER AND SMALLER SEGMENT OF ITS BUSINESS AND WRITING IN THE JAN 11 EDITION OF PC MAGAZINE ONE OF THE PUBLICATION'S EXECUTIVE EDITORS BILL HOWARD PREDICTED THAT IBM WOULD BACK OUT OF THIS SEVENYEAROLD DEAD END BY KILLING MICRO CHANNEL ALTOGETHER IN 1994 THE PS/2 WILL BE BETWEEN THE OSBORNE I AND THE COLECO ADAM IN COMPUTER MUSEUMS MR HOWARD WROTE WHILE IBM TODAY IS EXPECTED TO NOTIFY CORPORATE CUSTOMERS OF ITS LATEST PROBLEM IT HAD GOOD NEWS ON ANOTHER FRONT LAST WEEK THE COMPANY SAID IT WAS RESTORING SHIPMENTS OF ITS THINKPAD 500 SUBNOTEBOOKS WHICH HAD BEEN SUSPENDED DUE TO A BATTERY PROBLEM IBM ALSO IS EXPECTED EARLY NEXT YEAR FINALLY TO CATCH UP TO THE DEMAND OF ANOTHER THINKPAD MODEL WHICH HAD BEEN SOLD OUT EARLIER THIS YEAR 9312200027 931220 HOW FOX STOLE THE FOOTBALL AWAY FROM CBS BY WALL STREET JOURNAL REPORTERS JOHN HELYAR IN ATLANTA AND MEG COX AND ELIZABETH JENSEN IN NEW YORK AS LATE AS 4 PM FRIDAY NOT EVEN RUPERT MURDOCH BELIEVED HIS FOX NETWORK WOULD WIN THE BID FOR THE PREMIER PORTION OF THE NATIONAL FOOTBALL LEAGUE'S TELEVISION RIGHTS PACKAGE CBS INC HAD BEEN SYNONYMOUS WITH THE NFL FOR 38 YEARS THE NFL HAD USED FOX AS A STALKING HORSE BEFORE CBS HAD EVERY REASON MR MURDOCH THOUGHT TO DIG DEEP FOR THIS VALUABLE PIECE OF SUNDAYAFTERNOON PROGRAMMING HE BET ONE OF HIS AIDES 20 THAT FOX WOULDN'T GET FOOTBALL ONLY A FEW HOURS LATER HE HEARD THE STUNNING NEWS FOX THE FOURTH NETWORK OF MARGINAL INDEPENDENT TV STATIONS HAD BEAT OUT MIGHTY CBS FOR THE NATIONAL FOOTBALL CONFERENCE THE 156 BILLION BID BOUGHT THE RIGHTS TO PRO FOOTBALL'S VENERABLE AND HIGHLY RATED DIVISION MR MURDOCH LIKE A TRUE INTERNATIONAL MEDIA MOGUL BROKE OUT A FEW BOTTLES OF FINE WINE FOR HIS NEGOTIATING TEAM HE ALSO HAPPILY PAID OFF THE 20 BET IT WAS THE FIRST OF MANY LOSSES HE CAN EXPECT TO SUSTAIN ON THE FOURYEAR PACKAGE HIS BID AVERAGING 395 MILLION A YEAR TOPPED CBS'S BY SOME 100 MILLION A YEAR AND RAISED EYEBROWS AROUND THE TV INDUSTRY SOME INDUSTRY OBSERVERS PREDICT LOSSES OF 155 MILLION A YEAR ON THE PACKAGE CBS SAW A BIDDING CONTEST IT WASN'T WILLING TO ENTER IT HAD THE RIGHT TO MATCH FOX'S BID BUT DECLINED WE SAW A FREIGHT TRAIN COMING SAID ONE SENIOR EXECUTIVE BUT I DON'T THINK ANYBODY ANTICIPATED THEY WOULD BID THE MONEY THEY DID BUT THIS WAS A CHANCE MR MURDOCH WAS WILLING TO TAKE TO CATAPULT FOX INTO THE BIG LEAGUES THIS CHANGES A LOT IT MAKES US A NETWORK IN THE REAL SENSE OF THE WORD HE SAID IT IS ALL PART OF A LONGTERM STRATEGY YOU CAN HAVE 500 CHANNELS BUT NO ONE WILL HAVE THIS BUT FOX YOU CAN'T HURT FOOTBALL BY BROADCASTING OLD MOVIES THE BID UNDERSCORES THE VALUE OF SPORTS PROGRAMMING TO THE FUTURE OF THE ELECTRONIC MEDIA WHILE THE BIG THREE NETWORKS MOANED TO THE NFL ABOUT THEIR LOSSES ON THE CURRENT TV DEAL AND TRIED TO NEGOTIATE LOWER FEES ON THE NEXT ONE WHICH BEGINS WITH THE 1994 SEASON FOX AND OTHER NEWCOMERS WAVED BIG MONEY AT THE LEAGUE THE INCUMBENTS WERE FOCUSING ON THEIR EXPENSES OVER THE LAST CONTRACT SAID JERRY JONES THE DALLAS COWBOYS OWNER AND A MEMBER OF THE NFL'S TV COMMITTEE FOX WAS ADDRESSING HOW THINGS ARE GOING TO BE IN THE MEDIA OVER THE NEXT FIVE TO 10 YEARS FOX'S BIG NFL SCORE HAS WIDER IMPLICATIONS AS WELL IT SUGGESTS THAT JUST WHEN THE WELL SEEMED READY TO RUN DRY ON TV SPORTSRIGHTS FEES BROADCAST AND CABLE INTERESTS MAY EMERGE TO SUPPLANT THE BIG THREE NETWORKS AS BIG BIDDERS CERTAINLY THE FOX BID PROVIDED LEVERAGE FOR THE NFL TO GET HIGHER PAYMENTS FROM ITS OTHER TV OUTLETS THE LEAGUE IS EXPECTED TO REALIZE AN ESTIMATED 20 RISE IN TV REVENUE ABOVE ITS 36 BILLION OF THE PAST FOUR YEARS ABC A UNIT OF CAPITAL CITIES/ABC INC WILL RETAIN THE MONDAY NIGHT GAMES ESPN ANOTHER CAPITAL CITIES/ABC UNIT AND TURNER NETWORK TELEVISION A TURNER BROADCASTING SYSTEM INC UNIT WILL CONTINUE TO SPLIT A SUNDAY NIGHT PACKAGE CBS AND NBC A GENERAL ELECTRIC CO UNIT WILL SQUARE OFF FOR THE AMERICAN FOOTBALL CONFERENCE PACKAGE BOTH HAVE SUBMITTED BIDS TO THE NFL WHICH IS EXPECTED TO MAKE A DECISION AS SOON AS TODAY IF CBS LOSES THAT TOO IT IS EXPECTED TO PUT TOGETHER A PACKAGE OF SPORTS SUCH AS GOLF AUTO RACING AND FIGURE SKATING TO PROGRAM AGAINST FOOTBALL IF YOU SCHEDULE INTELLIGENTLY IT'S POSSIBLE TO MOUNT A FOURTH QUARTER THAT WILL GET THE NECESSARY RATINGS AND SALES IT'S NOT A SUBSTITUTE BUT IT CAN WORK ONE EXECUTIVE SAID TO BE WITHOUT ANY NFL GAMES WHATSOEVER WOULD BE A HUMBLING COMEDOWN FOR CBS HOWEVER WHICH AS RECENTLY AS THREE YEARS AGO WAS THE DOMINANT SPORTS NETWORK EARLIER THIS YEAR IT ALSO LOST MAJOR LEAGUE BASEBALL RIGHTS BEYOND THE SUNDAYAFTERNOON HOLE CBS'S TOPRATED SUNDAY LINEUP OF 60 MINUTES AND MURDER SHE WROTE COULD BE HURT BY A WEAKER LEADIN AUDIENCE FOX HAS FLIRTED WITH THE GRIDIRON BEFORE IN ITS EARLY DAYS IN 1987 IT ACTUALLY OUTBID ABC FOR MONDAY NIGHT FOOTBALL BUT THE NFL DISMISSED FOX AS THE JOAN RIVERS NETWORK ALLUDING TO ITS PREMIER STARTUP PERFORMER AND CHOSE ABC FOX WAS INTERESTED IN SUNDAY NIGHT GAMES IN 1990 BUT TED TURNER MADE A PREEMPTIVE BID FOX TWICE BURNED BY PRO FOOTBALL TURNED ITS ATTENTION TO DEVELOPING A YOUTH NICHE WITH SHOWS LIKE THE SIMPSONS AND BEVERLY HILLS 90210 THEY WEREN'T TERRIBLY HAPPY SAID ONE FOX CONSULTANT THINGS BEGAN TO CHANGE WHEN ANOTHER PART OF MR MURDOCH'S NEWS CORP TOOK A BIG PLUNGE INTO SPORTS ITS BRITISH TV SERVICE BSKYB BOUGHT THE RIGHTS TO PREMIERE LEAGUE SOCCER THOUGH IT WAS EXPENSIVE SAYS MR MURDOCH SOCCER WAS EXTREMELY IMPORTANT TO BSKYB IT HELPED US GET HUNDREDS OF THOUSANDS OF EXTRA SUBSCRIBERS ONCE THEY JOIN WE THEN SELL THEM MOVIE PACKAGES AND OTHER THINGS MR MURDOCH MADE PLANS TO ADD A HEAVY DOSE OF SPORTS TO STAR TV THE HONG KONGBASED SATELLITE SERVICE IN WHICH HE ACQUIRED A 60 INTEREST IN JULY AFTER LEARNING THE NFL'S RIGHTS WERE COMING UP FOR BID HE ASSEMBLED HIS BSKYB TEAM AND FOX EXECUTIVES IN LOS ANGELES IN EARLY NOVEMBER IN A MARATHON MEETING AT THE FOX LOT THE NFL STRATEGY WAS HATCHED AT THAT POINT THE NFL'S TV COMMITTEE HAD JUST COMPLETED TWO MONTHS OF MEETINGS WITH THE INCUMBENTS WHO HAD EXCLUSIVE NEGOTIATING RIGHTS THROUGH OCTOBER THEY HEARD A CONSTANT REFRAIN OF COMPLAINTS FROM CBS AND NBC IN PARTICULAR WHOSE COMBINED LOSSES ON THE 199093 PACKAGE APPROACHED 300 MILLION NBC SPORTS PRESIDENT DICK EBERSOL WAS PARTICULARLY ADAMANT THAT HE WAS WILLING TO WALK AWAY FROM THE GAME THE NFL TEAM DISMISSED SOME OF THIS AS POSTURING BUT COMMITTEE MEMBERS ALSO WERE GRIMLY REALISTIC THE TV AD MARKET WAS SOFT AND THEY FACED THE PROSPECT OF REDUCED NETWORK REVENUE THE MOTHER'S MILK OF PRO FOOTBALL ONLY THE LUNATIC FRINGE AMONG OWNERS FORECAST MUCH OF A RISE SAID TV COMMITTEE MEMBER PAT BOWLEN OWNER OF THE DENVER BRONCOS I PERSONALLY FELT IF WE COULD BRING IN A CONTRACT EQUAL TO THAT OF 1990 WE WOULD HAVE DONE WELL HE SAID THEN JUST BEFORE THANKSGIVING THE NFL NEGOTIATORS HAD THEIR FIRST SERIOUS MEETING WITH THE FOX TEAM LED BY CHASE CAREY FOX INC'S CHIEF OPERATING OFFICER AND LUCIE SULHANEY HEAD OF FOX NETWORK THE FOX OFFICIALS MADE IT CLEAR THEY WEREN'T INTERESTED IN BEING ON THE FRINGES OF THE NFL THEY WANTED THE WHOLE NFC OR THE WHOLE AFC PACKAGE FOX MADE CLEAR THEY WANTED A YEARROUND BRAND IDENTITY WITH THE NFL A SIGNATURE NOBODY ELSE HAD SAID ONE PERSON CLOSE TO THE LEAGUE SIDE OF THE NEGOTIATIONS THE NFL ENCOURAGED FOX TO PROCEED THOUGH WITH A CAVEAT ACCORDING TO THIS PERSON THEY HAD TO THINK ABOUT MONEY THAT WAS SUBSTANTIALLY NORTH OF THE INCUMBENTS' NUMBERS THE FOX TEAM DIDN'T FLINCH MEANWHILE THE NFL'S TV COMMITTEE ALSO WAS GETTING FEELERS FROM OTHER BROADCAST AND CABLE COMPANIES AMONG OTHER THINGS FOX HAD TO PROTECT ITSELF FROM TIME WARNER INC AND PARAMOUNT COMMUNICATIONS INC EACH INTERESTED IN STARTING ITS OWN NETWORK OF INDEPENDENT TV STATIONS THE NFL MOVED TV RIGHTS TO THE FRONT BURNER THE FIRST WEEK OF DECEMBER AFTER FINALLY GETTING EXPANSION SETTLED WITH THE NOV 30 SELECTION OF JACKSONVILLE FLA AS A NEW FRANCHISE ONE KEY SESSION WAS DEC 7 IN DALLAS WHERE FOX MET WITH A BROADER GROUP OF OWNERS THAN IT HAD BEFORE FOX DAZZLED THEM WITH DEMOGRAPHICS THE NETWORK'S STRONG AUDIENCE OF 18 TO 34YEAROLD MALES AND OF YOUNG WOMEN GROUPS THE NFL WANTED TO SHORE UP FOX NOTED IT HAD STRONG STATIONS IN NFL HOTBEDS LIKE NEW YORK AND WASHINGTON IT SHOWED OFF ITS HIGHQUALITY PRODUCTION OF BRITISH SOCCER GAMES ALLAYING FEARS FOX WOULDN'T BE UP TO NFL STANDARDS THE NETWORK UNVEILED PLANS TO PRESENT NFL PROGRAMMING YEARROUND AND TO BUILD AN NFL STUDIO ON THE FOX LOT THE QUALITY OF THE PRESENTATION WAS BEYOND ANYTHING I'D SEEN BEFORE SAID MR BOWLEN FOX ALSO STARTED TO SHOW THE COLOR OF ITS MONEY INDICATING IT WOULD START THE BIDDING FOR EITHER CONFERENCE AT 10 ABOVE EXISTING PRICES NOW THE NFL HAD SOMETHING WITH WHICH TO SCARE THE INCUMBENTS ON FRIDAY DEC 10 MR MURDOCH MET WITH THE NFL'S TV COMMITTEE AND THINGS STARTED HURTLING TO A CONCLUSION LAST THURSDAY FOX PUTS ITS 395 MILLIONAYEAR OFFER FOR THE NATIONAL FOOTBALL CONFERENCE ON THE TABLE CBS WAS GIVEN 72 HOURS TO MATCH IT BUT DIDN'T NEED THAT LONG BY LATE FRIDAY MR PILSON HAD FOLDED 9312200026 931220 CREDIT RATINGS MASCOTECH INC DETROIT MOODY'S INVESTORS SERVICE INC RAISED ITS CREDIT RATING ON THIS SUPPLIER TO THE AUTO INDUSTRY CITING ITS STRONG COMPETITIVE POSITION AND ITS EFFORTS TO REDUCE DEBT LEVELS A TOTAL OF 886 MILLION OF SECURITIES IS AFFECTED MASCOTECH'S SHELF REGISTRATION WAS UPGRADED TO PBA1 FROM PBA3 THE RATING CONCERN SAID ITS SENIOR SUBORDINATED NOTES WERE UPGRADED TO BA3 FROM B1 AND ITS CONVERTIBLE SUBORDINATED DEBENTURES WERE RAISED TO B1 FROM B2 MASCOTECH'S OPERATING PROFITS ARE STRENGTHENING AS A RESULT OF THE MODERATE RECOVERY IN ITS CORE US AUTOMOTIVE MARKET MOODY'S SAID MATTEL INC STANDARD & POOR'S CORP RAISED ITS RATINGS ON MATTEL'S 200 MILLION OF SENIOR UNSECURED NOTES TO TRIPLEBPLUS FROM TRIPLEBMINUS AND ON 100 MILLION OF SUBORDINATED DEBENTURES TO TRIPLEB FROM TRIPLEBMINUS FOLLOWING THE TOY MAKER'S RECENT 12 BILLION ACQUISITION OF FISHERPRICE INC THE RATINGS AGENCY REMOVED THE RATINGS FROM CREDITWATCH WHERE THEY WERE PLACED IN AUGUST CONCURRENT WITH THE ACQUISITION MATTEL'S LENDERS HAVE RELEASED THE COLLATERAL ON THE DOMESTIC BANK REVOLVING CREDIT AND THE COMPANY HAS REDUCED ITS RELIANCE ON FOREIGN BANK DEBT THAT IS STRUCTURALLY SENIOR TO THE RATED SENIOR UNSECURED DEBT S&P SAID THE PURCHASE MODERATELY ENHANCES MATTEL'S BUSINESS RISK PROFILE THROUGH AN IMPROVED MARKET POSITION AND GREATER PRODUCT LINE DIVERSITY 9312200025 931220 BUSINESS BRIEF GOODYEAR TIRE & RUBBER CO ONETIME CHARGE TO REFLECT BENEFITSACCOUNTING CHANGE GOODYEAR TIRE & RUBBER CO SAID IT ADOPTED A MANDATED NONCASH ACCOUNTING CHANGE RELATED TO POSTEMPLOYMENT BENEFITS RESULTING IN A ONETIME NET CHARGE OF 863 MILLION OR 59 CENTS A SHARE THE ACCOUNTING CHANGE REQUIRES COMPANIES TO RECORD LIABILITY FOR POSTEMPLOYMENT BENEFITS FOR FORMER OR INACTIVE EMPLOYEES AND THEIR DEPENDENTS AND BENEFICIARIES DURING THE YEARS THE EMPLOYEES PROVIDED SERVICE THE ACCOUNTING CHANGE IS RETROACTIVE TO THE START OF 1993 GOODYEAR RELEASED A RESTATED FINANCIAL STATEMENT FOR THE FIRST THREE SIX AND NINEMONTH PERIODS REFLECTING THE CHANGE FOR THE FIRST NINE MONTHS OF THE YEAR THE AKRON OHIO COMPANY REPORTED NET INCOME OF 2746 MILLION OR 188 A SHARE INCLUDING THE NEW 863 MILLION CHARGE AND A SEPARATE PREVIOUSLY REPORTED 146 MILLION CHARGE A YEAR AGO IT HAD A NET LOSS OF 7461 MILLION OR 524 A SHARE ON A LARGE ACCOUNTING CHARGE 9312200024 931217 LETTERS TO THE EDITOR SAY A PRAYER IN SCHOOL BUT SILENTLY IN RESPONSE TO YOUR DEC 6 EDITORIAL MISSISSIPPI PRAYS THE ONLY PROBLEM WITH THE SIMPLE NONSECTARIAN PRAYER OVER THE SCHOOL PA SYSTEM DESPITE YOUR SPIRITED DEFENSE OF IT IS THAT IT'S AGAINST THE LAW THE SUPREME COURT HAS SAID SO REPEATEDLY FOR EXAMPLE IN THE SCHOOL PRAYER CASE OF ENGEL V VITALE IN 1962 THE COURT RULED THAT THE FACT THAT A PRAYER MAY BE DENOMINATIONALLY NEUTRAL AND THAT ITS OBSERVANCE BY STUDENTS MAY BE VOLUNTARY DOES NOT MAKE IT PERMISSIBLE UNDER THE ESTABLISHMENT CLAUSE OF THE FIRST AMENDMENT WHEN ALABAMA ADDED THE WORDS OR VOLUNTARY PRAYER TO ITS MINUTE OF SILENCE FOR MEDITATION LAW THE SUPREME COURT DECLARED THE REVISED LAW UNCONSTITUTIONAL SAID JUSTICE JOHN PAUL STEVENS IN WALLACE V JAFFREE IN 1985 SPEAKING FOR THE COURT THE ADDITION OF OR VOLUNTARY PRAYER' INDICATES THAT THE STATE INTENDED TO CHARACTERIZE PRAYER AS A FAVORED PRACTICE SUCH AN ENDORSEMENT IS NOT CONSISTENT WITH THE ESTABLISHED PRINCIPLE THAT THE GOVERNMENT MUST PURSUE A COURSE OF COMPLETE NEUTRALITY TOWARD RELIGION ANY PUPIL WHO WISHES TO SAY A PRAYER IN A PUBLIC SCHOOL IS PERFECTLY FREE TO DO SO BUT THE MACHINERY OF THE PUBLIC SCHOOL CANNOT LAWFULLY BE USED FOR PRAYER RIGHT NOW STUDENTS IN JACKSON ARE BEING TAUGHT THE WRONG LESSON ABOUT OUR CONSTITUTION IE THAT BY MAJORITY VOTE YOU CAN NULLIFY A BASIC CONSTITUTIONAL RIGHT IT WOULD SURELY BE USEFUL TO TEACH IN PUBLIC SCHOOLS THE CORE VALUES THAT ARE BROADLY SHARED BY PEOPLE OF ALL FAITHS HONESTY DECENCY SPORTSMANSHIP CIVILITY LOVE OF COUNTRY RESPECT AND CONCERN FOR THE RIGHTS FREEDOMS AND FEELINGS OF OTHERS THIS KIND OF TEACHING CAN REINFORCE THOSE PARENTS AND CLERGY WHO ARE STRIVING TO TEACH THE VERY SAME VALUES FROM A GODCENTERED PERSPECTIVE AT HOME AND IN RELIGIOUS SCHOOLS IT CAN ALSO PROVIDE MORAL GUIDANCE FOR THOSE CHILDREN WHO BECAUSE THEY DON'T GET IT AT HOME AND DON'T ATTEND RELIGIOUS SCHOOL ARE NOT RECEIVING ANY SUCH GUIDANCE TEACHING CONSENSUS VALUES EFFECTIVELY WOULD DO FAR MORE SOCIETAL GOOD THAN HAVING CHILDREN IN PUBLIC SCHOOL LISTEN TO A PRAYER OVER THE PA SYSTEM AND UNLIKE THE PRAYER IT WOULD DO NO VIOLENCE TO THE CONSTITUTIONAL PRINCIPLE OF SEPARATION OF RELIGION AND GOVERNMENT WHICH PROTECTS US ALL VOLUNTARY PRAYER IS NOT AT ISSUE IN JACKSON NO ONE HAS EVER SUGGESTED THAT ANYONE IS NOT FREE TO PRAY PUBLICLY OR PRIVATELY AT ANY TIME OR IN ANY PLACE WHENEVER HE FEELS THE URGE TO DO SO IT IS THE PROPRIETY OF SYSTEMATIC IMPOSED PRO FORMA PRAYER SANCTIONED BY A GOVERNMENTAL AGENCY THAT IS AT ISSUE THE STUDENT BODY IS REQUIRED TO BE PRESENT AS A MATTER OF LAW AND IN THE JACKSON CASE A PUBLIC ADDRESS SYSTEM WAS USED TO EXPOSE THIS CAPTIVE AUDIENCE TO A SECTARIAN RELIGIOUS PHILOSOPHY SANCTIONED BY A SCHOOL ADMINISTRATOR IT IS DIFFICULT TO IMAGINE HOW SUCH AN ACTION CAN BE CHARACTERIZED AS VOLUNTARY USE OF THE SCHOOL BUILDING'S PUBLIC ADDRESS SYSTEM AN INTRUSIVE DEVICE TYPICALLY RESERVED FOR ANNOUNCEMENTS OF SCHOOL BUSINESS MATTERS FURTHER GIVES THE ENTIRE AFFAIR THE COLOR OF OFFICIAL SANCTION I MAKE NO VALUE JUDGMENTS CONCERNING THE EFFICACY OF PRAYERS PUBLIC OR PRIVATE IF THE JOURNAL'S EDITORS WISH TO DO SO AND IF THEY SERIOUSLY BELIEVE THAT DAILY INVOCATIONS ARE USEFUL IN PROMOTING THE JUDEOCHRISTIAN ETHIC THEY SHOULD DIRECT THEIR EFFORTS WHERE THEY WILL DO THE MOST GOOD PERHAPS A CAMPAIGN TO HAVE A DAILY PRAYER REPLACE THE STARTING GONGS AT THE NATION'S SECURITIES AND COMMODITIES EXCHANGES AND MAYBE EVEN A BRIEF REQUIEM NONSECTARIAN NATURALLY TO MARK THE END OF THE DAY'S TRADING I'M CERTAIN THERE ARE SOME STUDENTS WHO FIND SCHOOL PRAYER OVER A LOUDSPEAKER SYSTEM ANATHEMA AND THEIR RIGHTS SHOULD BE PROTECTED I KNOW I KNOW THEY CAN ALWAYS WALK OUT HOWEVER YOU KNOW AND I KNOW THAT THIS STIGMATIZES MEMBERS OF SMALL MINORITIES THIS TYPE OF PUBLIC PRAYER IN THE SCHOOLS SMALL AS IT MAY SEEM IS ESSENTIALLY THE CAMEL'S NOSE UNDER THE TENT FUNDAMENTALISTS AND OTHER GROUPS WHO BELIEVE THEY HAVE A PIPELINE TO GOD WILL CERTAINLY FOLLOW UP WITH MORE AND MORE DEMANDS FOR RELIGION IN THE SCHOOLS IF THIS FIRST STEP IS ALLOWED TO STAND 9312200023 931220 MARTECH USA INC FILES FOR CHAPTER 11 PROTECTION ANCHORAGE ALASKA MARTECH USA INC SAID IT FILED A PETITION FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION IN THE US BANKRUPTCY COURT IN ANCHORAGE THE COMPANY SAID IN A NEWS RELEASE THAT IT IS NEGOTIATING WITH ITS BANK LENDERS AND CONSTRUCTION BONDING COMPANIES TO PROVIDE WORKING CAPITAL AS PART OF ITS REORGANIZATION WHICH WILL ENABLE IT TO PAY ITS SUBCONTRACTORS AND VENDORS UNDER VARIOUS PROJECTS MARTECH ALSO SAID IT IS ASKING THE COURT TO ESTABLISH PROCEDURES SO THAT THE PAYMENTS CAN BE MADE PROMPTLY LAST WEEK THE ENVIRONMENTAL CLEANUP AND CONSTRUCTION COMPANY SAID IT HAD NO ALTERNATIVE BUT TO FILE FOR CHAPTER 11 PROTECTION AS IT DOUBLED ITS LOSS ESTIMATE FOR THE PAST FISCAL YEAR TO AS MUCH AS 33 MILLION THE COMPANY'S LENDERS HAD DECLARED ITS CREDIT LINES IN DEFAULT 9312200022 931220 EUROPEAN FIRMS DROP PROPOSAL FOR CREATION OF A CHEMICAL FUND SPECIAL TO THE WALL STREET JOURNAL BRUSSELS EUROPEAN CHEMICAL MAKERS DROPPED PLANS TO CREATE A RESTRUCTURING FUND THAT WOULD HAVE HELPED FINANCE CUTS IN THEIR PRODUCTION CAPACITY PARTICULARLY IN ETHYLENE THE ASSOCIATION OF PETROCHEMICAL PRODUCERS IN EUROPE SAID ITS MEMBERS DIDN'T UNANIMOUSLY SUPPORT THE PLAN THE ASSOCIATION SAID ITS MEMBERS HAVE AGREED THAT 15 MILLION METRIC TONS A YEAR OF ETHYLENE CAPACITY SHOULD BE SHUT DOWN TOTAL ETHYLENE CAPACITY IN 1994 IS ABOUT 194 MILLION TONS IT SAID THE ASSOCIATION CONDUCTED A CONFIDENTIAL SURVEY OF MEMBERS TO GAUGE THEIR SUPPORT FOR THE PLAN ASKING WHETHER THEY WOULD CONTRIBUTE TO THE FUND AND HOW MUCH CAPACITY THEY WOULD SEEK TO CUT WHILE DRAWING ON THE FUND ALTHOUGH A MAJORITY OF COMPANIES SAID THEY WOULD CONTRIBUTE FUNDS NOT ALL WERE WILLING TO PARTICIPATE THE ASSOCIATION SAID MOREOVER COMPANIES DIDN'T OFFER ENOUGH CAPACITY CUTS TO MEET THE 15 MILLIONTON TARGET THE GROUP IS CONTINUING TO DEVELOP OTHER PROPOSALS TO ACHIEVE ITS OBJECTIVE SEVERAL CHEMICAL MAKERS PARTICULARLY THE MOST EFFICIENT ONES WERE RELUCTANT TO PUT UP FUNDS FOR OTHER COMPANIES' CAPACITY CUTS THE POSITION OF THE UNITED KINGDOM'S IMPERIAL CHEMICAL INDUSTRIES PLC ONE OF EUROPE'S LARGEST CHEMICAL GROUPS IS TYPICAL OF THE MINORITY OF PRODUCERS THAT HAVEN'T BEEN ENTHUSIASTIC ABOUT THE ESTABLISHMENT OF THE FUND A SPOKESMAN FOR ICI IN LONDON SAID OUR VIEW HAS NEVER CHANGED THERE IS A NEED FOR RESTRUCTURING AND THE REMOVAL OF SURPLUS CAPACITY AND ICI HAS ALREADY TAKEN SEVERAL STEPS TO ACHIEVE THIS IN THE PAST THROUGH THE 1980S ICI CUT ITS PRODUCTION AND CLOSED SEVERAL PLANTS AT ITS OWN COST IT THUS SEES LITTLE JUSTIFICATION TO CONTRIBUTE TOWARD A CENTRAL FUND TO SUBSIDIZE OTHER PRODUCERS TRYING TO IMPROVE THEIR EFFICIENCY SOURCES IN LONDON FAMILIAR WITH ICI POINT OUT THAT THE RECENTLY CONCLUDED WORLDTRADE TALKS ALSO DEALT A BLOW TO THE PROPOSAL FOR A CENTRAL RESCUE FUND WHAT IS THE POINT OF APPE MEMBERS RESTRUCTURING TO BOOST PRICES UP IF THERE IS NOTHING NOW TO PREVENT CHEAPER IMPORTS FLOODING IN A SOURCE FAMILIAR WITH ICI'S MISGIVINGS SAID 9312200021 931217 LETTERS TO THE EDITOR LOSING OUR LAND AT A SNAIL'S PACE I AM RATHER DISTURBED BY THE COMMENTS OF GEORGE T FRAMPTON JR IF THE SNAILS SUFFER SO DO THE FARMERS LETTERS NOV 23 CONCERNING THE INCLUSION OF A MICROSCOPIC SNAIL FOUND IN IDAHO FARM COUNTRY ON THE ENDANGERED SPECIES LIST THE ACT WAS NEVER INTENDED TO BE A VEHICLE FOR THE FEDERAL GOVERNMENT OR ANY OTHER GROUP TO IMPOSE A SINGULAR CONCEPT OF APPROPRIATE RESOURCE USE ON PRIVATE LANDOWNERS IT IS VERY TROUBLING TO THINK THAT A WELLINTENTIONED PIECE OF LEGISLATION COULD BE PERVERTED AND MISUSED TO THE POINT WHERE MEN AND WOMEN WHOSE FAMILIES HAVE LABORED FOR GENERATIONS ON THE LANDS THEY OWN COULD LOSE EVERYTHING SIMPLY BECAUSE A SMALL GROUP OF ECORADICALS BELIEVES THERE ARE TOO FEW MICROSCOPIC SNAILS IN THE WORLD OUR FOUNDING FATHERS WOULD TURN IN THEIR GRAVES TO HEAR OF SUCH AN ABUSE OF FEDERAL POWERS OVER THE PAST CENTURY IDAHOANS HAVE MANAGED TO CREATE SOME OF THE MOST PRODUCTIVE FARMS AND RANCHES IN THE WORLD WHILE AT THE SAME TIME SERVING AS ADEPT CARETAKERS OF THE ABUNDANT NATURAL RESOURCES WITH WHICH THE REGION WAS BLESSED WE HAVE DEALT WITH THE PROBLEMS ASSOCIATED WITH LIFE IN THIS PART OF THE COUNTRY INCLUDING RISING AND FALLING WATER LEVELS WITH GREAT SUCCESS NOW MR FRAMPTON SEEMS TO THINK THAT THE PEOPLE OF THIS STATE DESPERATELY NEED AN ARMY OF BUREAUCRATS FROM WASHINGTON WITH ASSUMED INFINITE WISDOM AND STELLAR TRACK RECORDS IN PROGRAM MANAGEMENT TO GUIDE THEM THROUGH THE NEXT CENTURY WITH A LONGTERM PLAN ON HOW TO OPERATE THEIR FARMS AND RANCHES ASSUMING THAT IS ANY FARMS AND RANCHES ARE LEFT AFTER 1996 I SPEAK FOR MANY WHEN I SAY THAT THE PEOPLE OF IDAHO AND PARTICULARLY THE FARMERS AND RANCHERS OF THE BRUNEAU VALLEY DO NOT NEED NOR DESIRE TO BE SAVED FROM ASSUMED PERIL AT THE EXPENSE OF THE REGULATORY MORASS NO DOUBT ASSOCIATED WITH THE LISTING OF A MICROSCOPIC MOLLUSK ON THE RUNAWAY FREIGHT TRAIN YOU LIKE TO CALL THE ENDANGERED SPECIES ACT 9312200020 931220 BUSINESS BRIEF PRICE/COSTCO INC QUARTERLY LOSS IS REPORTED BECAUSE OF MERGER CHARGES PRICE/COSTCO INC KIRKLAND WASH SAID CHARGES ASSOCIATED WITH ITS MERGER CAUSED IT TO POST A FISCAL FIRSTQUARTER LOSS OF 33 MILLION OR 15 CENTS A SHARE VS NET INCOME OF 443 MILLION OR 20 CENTS A SHARE A YEAR EARLIER THE WAREHOUSE WHOLESALER BLAMED THE DECREASED SALES ON A TOUGH RETAIL ENVIRONMENT COUPLED WITH RISING COSTS FOR GOODS AND OVERSATURATION IN SOME MARKETS THE COMPANY REPORTED A NET CHARGE OF 80 MILLION RELATED TO THE OCTOBER MERGER OF PRICE CO AND COSTCO WHOLESALE CORP BEFORE THE CHARGE NET INCOME WOULD HAVE BEEN 47 MILLION OR 21 CENTS A SHARE 9312200019 931217 LETTERS TO THE EDITOR AIDS BLOOD SUPPLY TRUTH IN DIAGNOSES ROBERT S ROOTBERNSTEIN'S DEC 2 EDITORIALPAGE ARTICLE GOOD HIDDEN NEWS ABOUT THE AIDS EPIDEMIC SUGGESTS THAT THE NUMBER OF AIDS CASES MAY HAVE PEAKED BUT THAT THE CENTERS FOR DISEASE CONTROL'S REDEFINITION OF AIDS CASES MAY MASK THIS INFORMATION IT ALSO POSITS THAT SAFER SEX CAMPAIGNS CLEAN NEEDLE EXCHANGES AND BETTER HEALTH CARE ARE HAVING THEIR DESIRED EFFECTS BUT ONE IMPORTANT POINT WAS LEFT OUT BECAUSE OF CAREFUL BLOOD DONOR EVALUATION AND SOPHISTICATED LABORATORY PROCEDURES INCLUDING THE USE OF EIGHT SCREENING TESTS FOR INFECTIOUS DISEASE AMONG THEM TESTS FOR HIV1 AND HIV2 BY AMERICA'S BLOOD BANKS AIDS HAS VIRTUALLY BEEN ERADICATED FROM THE NATION'S BLOOD SUPPLY AS OF THE OCTOBER 1993 ISSUE OF THE CDC'S HIV/AIDS SURVEILLANCE REPORT 29 CASES OF TRANSFUSIONASSOCIATED AIDS HAD BEEN REPORTED SINCE BLOOD BANKS BEGAN SCREENING THE BLOOD SUPPLY FOR HIV IN MARCH 1985 THESE DATA PERTAIN TO A PERIOD DURING WHICH MORE THAN 30 MILLION AMERICANS RECEIVED A BLOOD TRANSFUSION IN ORDER TO SAVE THEIR LIVES MR ROOTBERNSTEIN'S ARTICLE CONTAINED EVEN BETTER NEWS THAN ONE MIGHT HAVE NOTICED AT FIRST GLANCE THE ARTICLE POINTED OUT THAT A REPORTED 41 UPSURGE BY THE CENTERS FOR DISEASE CONTROL IN DIAGNOSED AIDS CASES FROM 60656 BETWEEN JANUARY AND JUNE 1992 TO 85656 FOR THE SAME PERIOD THIS YEAR IS DUE TO A VASTLY EXPANDED DEFINITION OF AIDS BY THE CDC THE ARTICLE POINTS OUT THAT ONLY 35611 OF THE 85656 CASES REPORTED THIS YEAR WOULD HAVE QUALIFIED AS AIDS CASES UNDER THE OLD DEFINITION AND THAT IS 20045 FEWER AIDS PATIENTS IN 1993 THAN THE 60656 DIAGNOSED DURING THE SAME NINE MONTHS IN 1992 THIS IS A DROP OF 33 ACCORDING TO MY CALCULATIONS THE DIFFERENCE BETWEEN 60656 AND 36611 IS 24045 NOT 20045 AS THE ARTICLE STATES WHICH CORRELATES TO A DROP OF 3964 NOT 33 THIS ONLY SERVES TO STRENGTHEN THE POINT OF THE ARTICLE THAT DUE TO PLAYING GAMES WITH DEFINITIONS THE CDC GAVE THE IMPRESSION OF A 41 EXPANSION IN THE DIAGNOSED CASES WHEN THEY ACTUALLY DECREASED BY ALMOST 40 MISLEADING THE PUBLIC IN THE ATTEMPT TO SUCCEED MY COMPLIMENTS TO MR ROOTBERNSTEIN FOR HAVING THE COURAGE TO POINT OUT THE TRUTH IN THIS POLITICALLY CORRECT AGE 9312200015 931220 FINANCING BUSINESS HOLLINGER INC HOLLINGER INC TORONTO SAID ITS SUBSIDIARY FIRST DT HOLDINGS LTD SOLD TWO MILLION SHARES OF TELEGRAPH PLC OF THE UK TO THE PUBLIC FOR ABOUT 169 MILLION CANADIAN DOLLARS US127 MILLION HOLLINGER'S STAKE IN TELEGRAPH A NEWSPAPER PUBLISHING CONCERN FELL TO 664 FROM 679 AS A RESULT OF THE SALE HOLLINGER A TORONTO PUBLISHING CONCERN SAID IT SOLD THE SHARES TO PERMIT THE INCLUSION OF TELEGRAPH'S SHARES IN THE FT SE ACTUARIES ALLSHARE INDEX 9312200014 931220 BUSINESS BRIEF PLAYMATES INTERNATIONAL HOLDINGS HONG KONG CONCERN TO BUY STAKE IN PROPERTY PROJECT PLAYMATES INTERNATIONAL HOLDINGS LTD SAID IT WILL TAKE 175 OF A DALIAN CHINA PROPERTY PROJECT LED BY NEW WORLD DEVELOPMENT LTD PLAYMATES BASED IN HONG KONG MADE ITS NAME BY MARKETING TEENAGE MUTANT NINJA TURTLES TOYS AND RELATED PRODUCTS BUT IT RECENTLY HAS BEEN FOCUSING ON PROPERTY INTERESTS PLAYMATES SAID THE DALIAN PROJECT IS PART OF ITS COMMITMENT TO INVEST IN QUALITY PROPERTIES IN PRIME LOCATIONS IN MAJOR CITIES PLAYMATES SHAREHOLDERS WILL VOTE SHORTLY ON THE PURCHASE OF THE PRIVATE PROPERTY PORTFOLIO OF ITS CONTROLLING SHAREHOLDERS THE CHAN FAMILY OF HONG KONG AND ON A NAME CHANGE FOR THE COMPANY TO PLAYMATES PROPERTIES HOLDINGS LTD 9312200013 931220 BRITAIN IRELAND THREATEN ACTIONS AGAINST TERRORISTS BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL WITH THE BRITISHIRISH PEACE PROPOSAL SO FAR FAILING TO WIN A CEASEFIRE FROM EITHER CATHOLIC OR PROTESTANT TERRORISTS IN NORTHERN IRELAND GOVERNMENT OFFICIALS ARE ADDING A TWISTTHREATS OF AN UNRELENTING CRACKDOWN OFFICIALS OF BOTH GOVERNMENTS ARE SENDING WARNINGS THROUGH THE LOCAL PRESS OF AN ALLOUT CAMPAIGN AGAINST THE CATHOLIC IRISH REPUBLICAN ARMY IF IT CONTINUES ITS VIOLENT EFFORT TO RID NORTHERN IRELAND OF BRITISH RULE THE THRUST OF THE CRACKDOWN WOULD BE SOUTH OF THE BORDER IN THE REPUBLIC OF IRELAND WHERE ANTITERRORIST SECURITY ISN'T AS STRINGENT AS IN THE NORTH AND WHERE THE IRA ENJOYS SOME SUPPORT AMONG REPUBLIC CITIZENS WHO SHARE ITS DREAM OF A UNITED IRELAND BOTH GOVERNMENTS ARE TALKING OF INCREASING PROSECUTORIAL POWERS AGAINST TERRORISTS AND THE REPUBLIC OF IRELAND IS EVEN CONSIDERING A PROVISION FOR INTERNMENT WITHOUT TRIAL OF TERRORIST SUSPECTS TALK OF A CRACKDOWN FOLLOWED AN IRA ANNOUNCEMENT SATURDAY THAT AFTER ITS USUAL 72HOUR CHRISTMAS CEASEFIRE IT WOULD LIKELY RESUME ITS FIGHTING MEANWHILE IT SAID OFFICIALS OF THE GROUP'S POLITICAL WING SINN FEIN WOULD CONTINUE STUDYING THE BRITISHIRISH PEACE PROPOSAL AND FASHIONING THEIR RESPONSE ALREADY SINN FEIN OFFICIALS HAVE DESCRIBED THE PROPOSAL AS DISAPPOINTING ALTHOUGH THEY HAVEN'T DISMISSED IT OUTRIGHT THE IRA ANNOUNCEMENT CAME ONE DAY AFTER PROTESTANT TERRORISTS SAID THEY WOULDN'T CALL A CEASEFIRE ON THE BASIS OF THE PEACE PROPOSAL LIKE THE IRA HOWEVER THEY DIDN'T RULE OUT PEACE NEGOTIATIONS AND THEY INDICATED THAT THEIR DECISION ON HOW TO PROCEED WOULD BE INFLUENCED BY THE IRA THE PEACE PROPOSAL SIGNED LAST WEEK BY THE PRIME MINISTERS OF BRITAIN AND IRELAND INCLUDES AN IRISH PROMISE NOT TO TRY IMPOSING A UNITED IRELAND ON NORTHERN IRELAND WHICH IS PREDOMINANTLY PROTESTANT AND LOYAL TO THE BRITISH CROWN FOR ITS PART THE BRITISH GOVERNMENT AGREED TO PULL OUT OF NORTHERN IRELAND IF A MAJORITY OF ITS PEOPLE EVER VOTE FOR A UNITED IRELAND 9312200012 931220 GLOBAL VIEW A NEW RUSSIA WILL NOT BE BUILT IN A DAY BY GEORGE MELLOAN VLADIMIR ZHIRINOVSKY RUSSIA'S NEW POLITICAL STAR SAYS IN DAYLIGHT THE KINDS OF THINGS MOST RUSSIANS ONLY SAY LATE AT NIGHT IN SLEAZY BARS AFTER TOO MANY VODKAS THINGS LIKE WHY DON'T WE TAKE BACK ALASKA AND POLAND CHEAP VODKA FOR EVERYONE OR WORSE MAYBE THAT EXPLAINS HIS SUCCESS IN RUSSIA'S PARLIAMENTARY ELECTION A WEEKEND AGO WHEN OTHER RUSSIANS MUMBLE SIMILAR THINGS THEY ARE TRYING TO DROWN THEIR FRUSTRATION AND SENSE OF DEPRIVATION YOU MIGHT SAY THAT MR ZHIRINOVSKY WON THE VODKA VOTE YET THAT PHENOMENON SEEMS TO HAVE COME AS A SURPRISE TO MANY ACADEMICS AND WORKING POLITICIANS IN THE WEST WHO SPECIALIZE IN POLITICAL SCIENCE THE ELECTION HAS STIRRED UP MUCH ANGST ABOUT THE FAILURE OF RUSSIA'S REFORMS THE PRESCRIPTIONS FOR HOW THE WEST SHOULD REACT RANGE FROM SEND MORE MONEY TO INTERVENE LESS SO THAT THE RUSSIANS WILL NO LONGER THINK AN ALIEN PRESENCE NAMED JEFFREY SACHS IS RUNNING THEIR COUNTRY BUT FOR THOSE LESS STEEPED IN SCIENCE A SEPARATE THOUGHT MIGHT OCCUR SOMETHING LIKE AIN'T DEMOCRACY GRAND AND IT TRULY IS IF THERE HAD NOT BEEN A FREE ELECTION HOW WOULD WE KNOW ALL THE THINGS WE NOW KNOW ABOUT THAT VAST TERRITORY THAT STRETCHES ACROSS 11 TIME ZONES FROM KALININGRAD TO VLADIVOSTOK THE RUSSIAN FEDERATION WITH ITS 89 REPUBLICS AND REGIONS AND ITS MANY ETHNIC GRADATIONS IS NOT A SIMPLE PLACE ONE OF THE MARVELOUS THINGS ABOUT ELECTIONS IS THAT THEY ENABLE SELFEXPRESSION NOT JUST FROM THE ELITES BUT FROM THE MOST HUMBLE BABUSHKA IN HER LOG COTTAGE THEY TAKE US INSIDE THE MINDS OF THE MASSES SO WHAT HAVE WE LEARNED FROM THE RUSSIAN ELECTION WE HAVE LEARNED THAT A GREAT MANY VOTERS ARE NOT HAPPY WITH THE PRESENT STATE OF AFFAIRS AND ARE WILLING TO VENT THEIR ANGER BY OPTING FOR THE DEMAGOGIC ZHIRINOVSKY WE KNOW THAT THERE WAS A HEAVY VOTE FOR HIM IN MILITARY DISTRICTS NO DOUBT BECAUSE HE VOWED TO FIGHT FOR THE BUDGET AND DIGNITY OF THE RUSSIAN ARMY FROM THE VOTE FOR OTHER CANDIDATES WE KNOW THAT THERE STILL ARE SOME COMMUNISTS IN RUSSIA AND GUESS WHAT THERE'S ALSO A FARM VOTE AS THE THE AGRARIAN PARTY'S SUBSTANTIAL SUPPORT MADE CLEAR BUT WHY SHOULD ANY OF THIS COME AS A BIG SURPRISE WHAT NATION WOULD GREET A SHOCKING BOUT OF HYPERINFLATION WITH BENIGN SMILES WHY WOULDN'T ARMY CADRES VOTE FOR A CANDIDATE WHO PROMISED TO GIVE THEM BETTER HOUSING AND PAY AND REVERSE THE PLUNGE IN SIZE AND STATUS OF THE ARMED FORCES WHY WOULD ANYONE IMAGINE THAT ALL THE COMMUNISTS WHO SUCH A SHORT WHILE AGO RULED THE COUNTRY WOULD JUST DISAPPEAR OVERNIGHT AND WHY IS ANYONE IN THE WEST SURPRISED THAT THERE IS SUCH A THING AS A FARM VOTE IN THE PAST THE OUTSIDE WORLD HAS KNOWN VERY LITTLE ABOUT THE RUSSIAN PEOPLE FOR THE SIMPLE REASON THAT IT HAS BEEN OVER 80 YEARS SINCE THEY HAD A REASONABLY OPEN ELECTION FOR 73 OF THOSE YEARS THEY WERE RULED BY A PARTY THAT THROUGH PROPAGANDA AND SUPPRESSION SPECIALIZED IN CONCEALING HONEST OPINIONS THE PEOPLE WHO TALK ABOUT THE RUSSIAN REFORM AS IF IT IS A COHERENT ECONOMIC MODEL ARE MISSING THE POINT THERE WAS NO CHOICE BUT REFORM AFTER THE COLLAPSE OF THE OLD EMPIRE'S COMMAND ECONOMY RUN BY THE CENTRAL DIRECTION OF A PARTY ELITE IN MOSCOW THROUGH AN APPARATUS OF COMMITTEES OR SOVIETS IT COLLAPSED OF ITS OWN BUREAUCRATIC WEIGHT WHICH HAD DESTROYED WORK INCENTIVES AND CREATIVITY THE REFORMS WERE SIMPLY THE OBVIOUS CHOICES AS BORIS YELTSIN AND HIS HELPERS SET OUT TO BUILD A NEW EDIFICE ON THE WRECKAGE OF THE OLD ONE FREEING UP PRICES WAS VITAL TO THE RESTORATION OF PRODUCTION AND THE AVOIDANCE OF SHORTAGES OF NECESSITIES ALLOWING PROPERTY OWNERSHIP WAS VITAL TO THE RESTORATION OF WORK INCENTIVES EVEN INFLATION HAD A CERTAIN LOGIC INITIALLY MONEY CREATION BECAME A MEANS OF PREVENTING WIDESCALE UNEMPLOYMENT AS THE COUNTRY TRIED TO STUMBLE ITS WAY THROUGH THE TRANSITION FROM QUOTABASED PRODUCTION TO PRODUCTION IN RESPONSE TO REAL DEMANDS MR YELTSIN HAD THE WISDOM AND SKILL TO PUSH FOR A NEW CONSTITUTION ESTABLISHING OPEN DEMOCRATIC ELECTIONS AS THE NORM THE MOST SIGNIFICANT VOTE THAT TOOK PLACE DEC 12 WAS THE ONE THAT APPROVED THAT CONSTITUTION AND AFFIRMED THAT MOST RUSSIANS WHATEVER OTHER VIEWS THEY MIGHT HAVE WANT A DEMOCRATIC SYSTEM A LOT OF YOUNG RUSSIANS DIDN'T VOTE APPARENTLY OUT OF DISGUST WITH POLITICS AND A FOCUS ON MAKING THEIR WAY IN PRIVATE ENDEAVORS INDEPENDENT OF THE STATE BUT HAVING SEEN THAT THEY HAD IN EFFECT DEFAULTED TO POLITICIANS LIKE MR ZHIRINOVSKY MANY WILL MOST LIKELY BE LESS CARELESS WHEN THE NEXT PARLIAMENTARY ELECTIONS ARE HELD TWO YEARS FROM NOW THAT DOESN'T MEAN THAT DEMOCRACY IS SAFE THE PROCESS OF BUILDING GENUINE DEMOCRATIC INSTITUTIONS DEVELOPING RESPECT FOR THE CONSTITUTION CIVIL LAWS AND CONTRACTS IS ONLY BEGINNING INDEED THE PROCESS OF BUILDING ALL KINDS OF VITAL INSTITUTIONS SUCH AS A RELIABLE SYSTEM OF BANKING IS ONLY BEGINNING IT WILL BE A MESSY PROCESS NO DOUBT BUT THE MOVEMENT IS IN THE RIGHT DIRECTION THE BOTTOM LINE QUESTION JUSTIFYING SOME ANGST IS HOW DANGEROUS WILL RUSSIA BE TO ITS NEIGHBORS WHILE IT STRUGGLES TO BURY ITS PAST SPENCER R WEART A HISTORIAN AT THE AMERICAN INSTITUTE OF PHYSICS IN NEW YORK HAS JUST DONE SOME APPLICABLE RESEARCH WITH SUPPORT FROM THE UNITED STATES INSTITUTE OF PEACE IT WILL COME AS NO SURPRISE THAT HE FOUND THAT WELLESTABLISHED DEMOCRACIES ALMOST NEVER MAKE WAR ON OTHER DEMOCRACIES RUSSIA DOES NOT YET HAVE A WELLESTABLISHED DEMOCRACY BUT AT LEAST IT ASPIRES TO ONE AS TO THE DANGER OF THE RUSSIAN MILITARY STAGING A COUP OR TAKING OUT ITS FRUSTRATIONS AGAINST SOME NEIGHBORING NATION THAT RISK TOO IS PROBABLY LESS THAN SOME PEOPLE FEAR JOHN WR LEPINGWELL OF RADIO FREE EUROPE/RADIO LIBERTY WROTE FOR THE WALL STREET JOURNAL EUROPE LAST WEEK THAT THE RUSSIAN ARMY STILL HAS TROOPS IN A NUMBER OF NEARBY STATES INCLUDING GERMANY AND THE BALTICS AND IS THUS WORRISOME BUT IT IS NO LONGER A FORMIDABLE MILITARY ORGANIZATION THE DANGER DERIVES MORE FROM THE WEAKNESS OF MOST OF ITS NEIGHBORS RATHER THAN ITS OWN STRENGTH BUT SO LONG AS THE WEST INSISTS ON RAPID DISARMAMENT THE RUSSIAN THREAT SHOULD NEVER BE ENTIRELY DISCOUNTED PROBABLY THE BEST THING THE WEST CAN DO ABOUT MR ZHIRINOVSKY IS TREAT HIM WITH THE DISDAIN HE DESERVES US VICE PRESIDENT AL GORE SET A GOOD EXAMPLE FOR THAT IN MOSCOW LAST WEEK WHEN HE BRUSHED OFF ZHIRINOVSKY AND FOCUSED ON THE CLINTONYELTSIN SUMMIT PLANNED FOR THAT CITY NEXT MONTH ACCENTUATE THE POSITIVE AND OVER TIME MAYBE THE VODKA VOTE WILL DIMINISH 9312200011 931220 WHO'S NEWS MACANDREWS & FORBES HOLDINGS INC MACANDREWS & FORBES HOLDINGS INC NEW YORK WILLIAM LYNCH JR 52 YEARS OLD WAS NAMED VICE PRESIDENT OF THIS CONSUMER PRODUCTS ENTERTAINMENT AND PUBLISHING HOLDING COMPANY MR LYNCH IS A FORMER DEPUTY MAYOR OF NEW YORK FOR THE DINKINS ADMINISTRATION 9312200010 931220 RECRUIT CHINA TO REIN IN NORTH KOREA BY KENNETH TIMMERMAN THE BIG CARROT APPROACH THE US HAS PURSUED TOWARD NORTH KOREA IS MOTIVATED BY REAL DANGER NORTH KOREA MIGHT INDEED GO TO WAR IF IT FELT TRULY THREATENED BY THE US BUT WHILE THE US HAS OPTED AT LEAST ON THE SURFACE FOR A DIPLOMATIC APPROACH IT HAS FAILED TO FLEX ITS DIPLOMATIC MUSCLE WITH REGARD TO NORTH KOREA'S PRINCIPAL BACKER ON THE INTERNATIONAL SCENE CHINA HISTORY WILL IDENTIFY 1993 AS AN IMPORTANT YEAR FOR ASIA IT HAS BEEN THE YEAR IN WHICH THE SECRETARY OF STATE OF A NEW ADMINISTRATION IN WASHINGTON HAS SAID OF ASIA AND THE PACIFIC THAT THERE WAS NO REGION IN THE WORLD MORE IMPORTANT TO THE US ECONOMIC GROWTH AND PARTICULARLY CHINA'S POTENTIAL FOR ECONOMIC GROWTH HAS DAZZLED US BUSINESS AND RAISED THE HOPES OF THE CLINTON ADMINISTRATION FOR THE US ECONOMY THEN COMES NORTH KOREA ALMOST AS A SPOILER ITS DRAMATIC ANNOUNCEMENT ON MARCH 12 OF THIS YEAR THAT IT WAS GOING TO BECOME THE FIRST COUNTRY EVER TO WITHDRAW FROM THE TREATY ON THE NONPROLIFERATION OF NUCLEAR WEAPONS SENT A WAKEUP CALL AROUND THE WORLD EVEN IN THE PLACID HALLS OF THE INTERNATIONAL ATOMIC ENERGY AGENCY IN VIENNA WHICH HAS NEVER BLOWN THE WHISTLE ON AN UNDECLARED NUCLEAR WEAPONS PROGRAM IN ITS 40YEAR HISTORY THE ALARM BELLS WERE GOING OFF WITHDRAWAL FROM THE NONPROLIFERATION TREATY BY A MEMBER STATE WAS THE ULTIMATE TABOO IT WAS TANTAMOUNT TO ADMITTING THE EXISTENCE OF A CLANDESTINE NUCLEAR WEAPONS CAPABILITY A MOVE EVEN IRAQ NEVER MADE THE US INTELLIGENCE COMMUNITY HAD LITTLE DOUBT OF NORTH KOREA'S INTENTION TO GO NUCLEAR WORSE CAREFUL SCRUTINY OF NORTH KOREA'S CLANDESTINE NUCLEAR FACILITIES AND ESTIMATES OF HOW MUCH WEAPONS GRADE MATERIAL THEY HAVE MOST LIKELY BEEN ABLE TO EXTRACT LED MOST SPECIALISTS TO CONCLUDE THAT NORTH KOREA HAD ALREADY CROSSED THE NUCLEAR THRESHOLD FROM DAY ONE THE STATE DEPARTMENT HAS CAUTIOUSLY REFRAINED FROM ESCALATING THE CRISIS BANKING ON OBTAINING A NEGOTIATED SETTLEMENT THAT WOULD WALK THE NORTH KOREANS BACK FROM THE NUCLEAR OPTION ACCORDING TO DEPARTMENT OFFICIALS THEY HAVE CHOSEN NOT TO LINK POLICY ON NORTH KOREA AND CHINA AND INDEED HAVE PURSUED TWO SEPARATE POLICY TRACKS EACH DAY THE US NEGOTIATES WITH NORTH KOREA'S COMMUNIST MONARCHY THE MORE PLUTONIUM THE NORTH KOREANS ARE ABLE TO SEPARATE TO BUILD BOMBS CHINA TODAY HOLDS THE KEY TO NORTH KOREA'S INCREASINGLY VULNERABLE ECONOMY AS IT HAS FOR THE PAST 40 YEARS CHINA SUPPLIES TWOTHIRDS OF NORTH KOREA'S OIL IMPORTS ACCORDING TO THE PENTAGON IT HAS ALSO SUPPLIED ROCKET MOTORS AND GUIDANCE TECHNOLOGIES FOR NORTH KOREAN MISSILES WHICH IN TURN ARE EXPORTED FOR HARD CURRENCY TO ROGUE REGIMES SUCH AS IRAN AND LIBYA MORE IMPORTANT PERHAPS CHINA HAS BEEN LOBBYING THE CLINTON ADMINISTRATION AND OTHER MEMBERS OF THE UNITED NATIONS SECURITY COUNCIL TO BACK OFF FROM A CONFRONTATION WITH NORTH KOREA CALLING INSTEAD FOR PATIENT TALK PRIVATELY CHINESE OFFICIALS ARGUE THAT NORTH KOREA'S WITHDRAWAL FROM THE NONPROLIFERATION TREATY IS NOT SUFFICIENT FOR THE IMPOSITION OF SANCTIONS THE IMPLIED THREAT THAT CHINA WOULD VETO ANY UN SECURITY COUNCIL RESOLUTION THAT CALLS FOR A TRADE EMBARGO ON NORTH KOREA HAS APPARENTLY PREVENTED THE US FROM PRESSING THE ISSUE WHEN THE GENERAL ASSEMBLY TOOK UP A RESOLUTION ON NOV 1 THAT CALLED ON NORTH KOREA TO COOPERATE FULLY WITH THE IAEA CHINA ABSTAINED NORTH KOREA TOOK HEART IN THE CHINESE VOTE CHINA IS FACING A HARD CHOICE IT CLEARLY DOES NOT WANT TO MAKE ON THE ONE HAND IT DOES NOT WANT TO BE FORCED TO BREAK RANKS WITH THE FIVE PERMANENT MEMBERS OF THE SECURITY COUNCIL BY VETOING A SANCTIONS RESOLUTION ON THE OTHER IT DOESN'T WANT TO BE SEEN AS ABANDONING NORTH KOREA ITS LONGTIME PROTEGE AND SOMETIME ARMSEXPORTING SURROGATE BUT CHINA'S SECURITY IS NOT SERVED BY A NUCLEAR NORTH KOREA JAPAN AND SOUTH KOREA HAVE ALREADY QUIETLY WARNED THAT THEY MAY BE INCLINED TO RECONSIDER THEIR OWN NUCLEAR POSTURE IF NORTH KOREA IS ALLOWED TO GO NUCLEAR TAIWAN MAY NOT BE FAR BEHIND CONFLICT IN THE PACIFIC RIM WOULD SPELL DISASTER FOR CHINA'S ECONOMIC DEVELOPMENT SUSPICION OF CHINESE COLLUSION WITH A NUCLEAR NORTH KOREA WOULD UNDOUBTEDLY LEAD WESTERN STATES AND JAPAN TO REIMPOSE THE TRADE BARRIERS ON STRATEGIC GOODS THAT WERE ABOLISHED AT THE END OF THE COLD WAR THIS IN TURN WOULD CRIPPLE CHINA'S DREAM OF JOINING SOUTH KOREA AS AN ASIAN ECONOMIC POWERHOUSE CONGRESSIONAL STAFFERS WHO ARE MONITORING THE ADMINISTRATION'S NEGOTIATIONS WITH NORTH KOREA BELIEVE THE CHINESE ARE TAKING A GAMBLE THAT THE CRISIS WILL NOT COME TO A HEAD AND A UN SECURITY COUNCIL VOTE UNTIL APRIL OR MAY THIS IS WHEN CONGRESS WILL BEGIN ITS YEARLY DELIBERATIONS ON WHETHER TO RENEW MOSTFAVOREDNATION TRADING STATUS ON CHINA THE STAFFERS SEE A BARGAIN ALREADY IN THE MAKING THE CHINESE GRUDGINGLY AGREE NOT TO VETO TOUGH UN SANCTIONS AGAINST NORTH KOREA AND THE WHITE HOUSE PLEDGES TO CERTIFY TO CONGRESS THAT CHINA HAS MADE SIGNIFICANT PROGRESS ON HUMAN RIGHTS AND OTHER ISSUES OF DISPUTE WARRANTING THE EXTENSION OF MOSTFAVOREDNATION STATUS SUCH A BARGAIN WOULD BE GOOD FOR CHINA GOOD FOR US EXPORTS AND GOOD FOR US JOBS IT WOULD BE A DISASTER FOR OUR NONPROLIFERATION POLICY HOWEVER IF IT DIDN'T LEAD DIRECTLY TO WAR ON THE KOREAN PENINSULA BY ALLOWING THE NORTH KOREANS TO BUY ENOUGH TIME TO ACCUMULATE A SIGNIFICANT NUCLEAR ARSENAL IT WOULD CERTAINLY ENCOURAGE OTHER POTENTIAL PROLIFERATORS TO BRAZENLY PURSUE A NUCLEAR WEAPONS OPTION AS A MEANS OF REAPING REWARDS FROM THE WORLD'S REMAINING SUPERPOWER IF SUCH A DEAL IS HATCHED WHICH THE STATE DEPARTMENT DENIES IT WOULD BE BUT THE LATEST EXAMPLE OF HORSETRADING FROM THE WHITE HOUSE AFTER SIX MONTHS OF CONFRONTING THE CHINESE ON HUMAN RIGHTS AND ON THEIR SALES OF BALLISTIC MISSILES AND NUCLEAR TECHNOLOGY TO ROGUE REGIMES THE CLINTON ADMINISTRATION SWITCHED COURSE IN LATE SEPTEMBER AND BEGAN OFFERING A SERIES OF ENTICEMENTS INTENDED TO WIN CHINESE COOPERATION IN THESE AREAS THIS APPROACH WAS TRIED WITHOUT SUCCESS BY THE BUSH ADMINISTRATION WITH THE RATIONALE THAT CHINA VIEWS BOTH AREAS AS EXPRESSIONS OF NATIONAL SOVEREIGNTY AND WILL RESIST WHAT IT CONSIDERS TO BE FOREIGN INTERFERENCE IN ITS DOMESTIC AFFAIRS THE ADMINISTRATION SHOULD INSTEAD ENGAGE CHINA VIGOROUSLY TO SECURE ITS ACTIVE PARTICIPATION IN ALL MEASURES INCLUDING JOINT NAVAL EXERCISES OFF THE NORTH KOREAN COAST AND A TOTAL ECONOMIC EMBARGO AIMED AT BRINGING THE KOREAN PENINSULA BACK FROM THE NUCLEAR BRINK CHINA SURELY UNDERSTANDS THAT ITS OWN LONGTERM SECURITY INTERESTS ECONOMIC DEVELOPMENT AND FOREIGN TRADE ARE AT STAKE BUT TO GET CHINESE COOPERATION WE SHOULD NOT GIVE UP THE STORE THERE SHOULD BE NO CONCESSION ON OUTSTANDING ISSUES SUCH AS HUMAN RIGHTS VIOLATIONS OR CHINESE MISSILE SALES INSTEAD CHINA SHOULD BE OFFERED THE CHANCE TO PLAY ITS ROLE AS A RESPONSIBLE WORLD LEADER BY USING ITS INFLUENCE FOR INTERNATIONAL SECURITY NOT MISCHIEF MR TIMMERMAN IS A SECURITY CONSULTANT AND THE AUTHOR OF THE DEATH LOBBY HOW THE WEST ARMED IRAQ HOUGHTON MIFFLIN 1991 9312200009 931220 RULES OF PARAMOUNT AUCTION INDICATE BIDDING MAY NOT END IN ONE ROUND BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PARAMOUNT COMMUNICATIONS INC WHICH WILL RECEIVE SEALED OFFERS FROM RIVAL BIDDERS VIACOM INC AND QVC NETWORK INC TODAY LEFT OPEN THE POSSIBILITY OF SUCCESSIVE ROUNDS OF BIDDING PARAMOUNT'S ADVISERS SAID OVER THE WEEKEND THAT IF THEY BOTH PARTICIPATE IN THE AUCTION QVC AND VIACOM WILL BEGIN SIMULTANEOUS TENDER OFFERS AFTER PARAMOUNT ENDORSES ONE OF THEIR BIDS THE BIDDERS CAN THEN REVISE THOSE OFFERS ANY TIME WITHIN 10 DAYS THE PROCEDURE WILL GIVE SHAREHOLDERS THE ULTIMATE CHOICE THE ADVISERS SAID BUT THEY SAID THE AUCTION WOULD END WHEN ONE OF THE BIDDERS' TENDER OFFERS DREW 51 OF PARAMOUNT SHARES PARAMOUNT'S DIRECTORS ULTIMATELY WILL LIFT THE COMPANY'S POISON PILL TAKEOVER DEFENSE FOR THE FIRST BIDDER THAT REACHES THAT LEVEL BOTH QVC AND VIACOM SOUGHT REVISIONS THAT WOULD GIVE EACH AN ADVANTAGE OVER THE OTHER OR REMOVE A PERCEIVED DISADVANTAGE AND EACH CONTINUED TO GROUSE ABOUT THE RULES YESTERDAY QVC AND VIACOM KEPT THEIR PLANS CLOSE TO THEIR VESTS WITH VIACOM REFUSING TO EVEN CONFIRM THAT IT WILL SUBMIT A BID BY THE DEADLINE OF 4 PM EST TODAY THE TENDER OFFER THAT WAS EXTENDED LAST WEEK IS STILL IN EFFECT A VIACOM SPOKESMAN SAID THE BOARD OF QVC IS TO MEET AT 11 AM TO VOTE ON THE OFFER THAT THE HOME SHOPPING GIANT WILL SUBMIT AS OF THIS MORNING QVC'S OFFER OF 101 BILLION OR 8405 A SHARE EXCEEDS VIACOM'S OFFER OF 96 BILLION OR 8027 A SHARE THERE WAS SOME SPECULATION ON WALL STREET LATE LAST WEEK THAT VIACOM MIGHT DROP OUT OF THE BIDDING IN THE THREEMONTH BATTLE FOR PARAMOUNT BUT TRADERS SAID THOSE RUMORS MAY HAVE REFLECTED AN EFFORT BY VIACOM TO CONFUSE ITS OPPONENT QVC THERE WERE ALSO REPORTS THAT BLOCKBUSTER ENTERTAINMENT CORP AND NYNEX CORP WHICH HAVE AGREED TO INVEST A COMBINED 18 BILLION IN VIACOM'S BID MAY INCREASE THEIR INVESTMENT ADVISERS TO NYNEX YESTERDAY REFUSED TO SAY WHETHER THE TWO COMPANIES WERE IN NEGOTIATIONS OFFICIALS AT BLOCKBUSTER COULDN'T BE REACHED IN ONE SIGNAL THAT VIACOM MIGHT BE PLANNING A SIGNIFICANT IMPROVEMENT IN ITS OFFER THE COMPANY YESTERDAY FORMALLY ADDRESSED THE MONTHSOLD CONTROVERSY SURROUNDING TRADING IN ITS SHARES BY CHAIRMAN SUMNER REDSTONE AND HIS 25OWNED WMS INDUSTRIES INC THE SECURITIES AND EXCHANGE COMMISSION HAS BEEN INVESTIGATING MR REDSTONE'S PURCHASES OF VIACOM SHARES BEFORE THE COMPANY REACHED AN AGREEMENT TO ACQUIRE PARAMOUNT AND WMS'S PURCHASES OF VIACOM SHARES AFTER THE DEAL WAS ANNOUNCED IN SEPTEMBER A VIACOM SPOKESMAN SAID THE COMPANY COMPLETED AN INTERNAL INQUIRY INTO THE PURCHASES ONLY YESTERDAY MORNING AND RELEASED THE FINDINGS LATER IN THE DAY THE VALUE OF BOTH VIACOM'S AND QVC'S SECURITIES IS CRUCIAL BECAUSE THEY REPRESENT ALMOST HALF THE PAYMENT INCLUDED IN THE TWOSTEP OFFERS BUT BOTH STOCKS HAVE BEEN VOLATILE GENERATING UNCERTAINTY ABOUT THEIR INTRINSIC VALUE IN ORDER TO OFFSET THE CONCERN ABOUT THEIR SHARES AND LIMIT DILUTION THAT WILL OCCUR BY ISSUING STOCK AS PAYMENT FOR PARAMOUNT OBSERVERS SPECULATE THAT BOTH BIDDERS WILL SEEK TO IMPROVE THEIR OFFERS BY INCREASING THE CASH COMPONENT CURRENTLY QVC'S OFFER INCLUDES ABOUT 55 BILLION IN CASH OR THE 90 A SHARE IT IS OFFERING FOR 51 OF PARAMOUNT WHILE VIACOM'S INCLUDES 52 BILLION OR 85 A SHARE FOR 51 EACH BIDDER COULD EXPAND THE FIRSTSTEP CASH PORTION TO GREATER THAN 51 SOME OBSERVERS FOR EXAMPLE HAVE SPECULATED THAT QVC MIGHT EXPAND ITS OFFER TO AS MUCH AS 70 OF PARAMOUNT SHARES IN THE FIRST STEP AT 90 EACH WITH THE HIGHEST BID ALREADY ON THE TABLE QVC CHAIRMAN BARRY DILLER IS SAID TO BE ESPECIALLY CAUTIOUS WORRYING THAT HE MAY BE BIDDING AGAINST HIMSELF IN A MOVE TO LESSEN THAT POSSIBILITY QVC SOUGHT TO PERSUADE PARAMOUNT TO SUBMIT TO OPEN PUBLIC BIDDING 9312200008 931220 FEDERAL RESERVE OFFICIALS CANCEL SPECIAL MEETING WASHINGTON FEDERAL RESERVE OFFICIALS CANCELED A SPECIAL MEETING THEY HAD PLANNED FOR TODAY TO DECIDE WHETHER TO KEEP TRANSCRIPTS OF THEIR DELIBERATIONS AND IF SO UNDER WHAT CONDITIONS TO MAKE THEM PUBLIC WE HAD HOPED THE STAFF WOULD HAVE COMPLETED THEIR WORK IN TIME UNFORTUNATELY THEY HAVEN'T A FED SPOKESMAN SAID THE DISCUSSION INSTEAD WILL BE HELD WHEN THE FED'S OPEN MARKET COMMITTEE MEETS IN EARLY FEBRUARY THE COMMITTEE STILL PLANS TO MEET TOMORROW TO SET INTERESTRATE POLICY FOR THE NEXT SEVERAL WEEKS 9312200007 931220 ECONOMY CONTINUED INCREASES IN HOUSING STARTS SHOW STRENGTH THAT COULD AID ECONOMY BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOUR CONSECUTIVE MONTHLY INCREASES IN HOUSING STARTS SUGGEST A STRENGTHENING SECTOR THAT WILL SPUR ECONOMIC GROWTH IN THIS QUARTER AND NEXT ECONOMISTS SAID STARTS CLIMBED 39 IN NOVEMBER THE COMMERCE DEPARTMENT REPORTED TO AN ANNUAL RATE OF 1432000 UNITS FOR THREE MONTHS NOW STARTS HAVE BEEN RUNNING AT THE HIGHEST LEVELS SINCE FEBRUARY 1990 THE LATEST REPORT REVISED OCTOBER'S FIGURE TO 1378000 AND SEPTEMBER'S TO 1371000 INCREASED ACTIVITY IN THE NORTHEAST AND SOUTH OFFSET SLIGHT DECREASES IN THE WEST AND MIDWEST ACTIVITY IN THE MIDWEST HAD BEEN RISING RECENTLY BECAUSE OF REBUILDING AFTER THE FLOODS THE INCREASE WAS A BIT MORE THAN EXPECTED SAID WARREN LASKO EXECUTIVE VICE PRESIDENT OF THE MORTGAGE BANKERS ASSOCIATION OF AMERICA IT'S A WELCOME FIGURE REFLECTING LOW INTEREST RATES AND INCREASED CONFIDENCE AMONG HOME BUYERS THE BIGGEST STORY IN THE NOVEMBER REPORT WAS A 45 JUMP IN STARTS OF SINGLEFAMILY HOMES TO AN ANNUAL RATE OF 1269000 THE HIGHEST LEVEL SINCE FEBRUARY 1987 THERE HAVE BEEN ONLY TWO MONTHS IN THE PAST 15 YEARS WHEN THE RATE OF SINGLEFAMILY HOME STARTS WAS HIGHER SAID BRUCE STEINBERG SENIOR ECONOMIST FOR MERRILL LYNCH & CO THE HOUSING RECOVERY HAS BEEN CENTERED IN SINGLEFAMILY UNITS BECAUSE RENTERS ENCOURAGED BY LOW INTEREST RATES ARE EAGER TO BECOME HOMEOWNERS HOWEVER THE SHIFT FROM RENTING TO OWNING HAS TAKEN A TOLL ON APARTMENT CONSTRUCTION STARTS ON MULTIFAMILY UNITS LAST MONTH WERE DOWN 06 TO A 163000UNIT ANNUAL PACE THE MULTIFAMILY MARKET CLEARLY GOT OVERBUILT AND IS STILL LABORING WITH HIGH VACANCY RATES SAID DAVID SEIDERS CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF HOME BUILDERS THE HOPE FOR GROWTH HERE IS IN THE CONSTRUCTION OF LOWINCOME UNITS SPARKED BY FEDERAL TAX CREDITS MOST ANALYSTS EXPECT HOUSING STARTS TO INCREASE DURING THE FIRST HALF OF NEXT YEAR AND THEN LEVEL OFF AS THE SUPPLY OF HOUSING MEETS CONSUMER DEMAND BUILDING PERMITS A BAROMETER OF FUTURE CONSTRUCTION WERE AT NEARRECORD LEVELS IN NOVEMBER PERMITS ROSE 48 FROM OCTOBER AND 203 FROM A YEAR EARLIER TO A 1367000 ANNUAL RATE THE HIGHEST LEVEL SINCE JANUARY 1990 BUILDERS ARE GETTING A JUMP ON NEXT YEAR AND LAYING A FOUNDATION THAT'S PROMISING MR LASKO SAID ALL NUMBERS HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9312200006 931220 INTERNATIONAL METALLGESELLSCHAFT AG DISMISSES CHAIRMAN AND FINANCE CHIEF SPECIAL TO THE WALL STREET JOURNAL FRANKFURT BOTH THE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF GERMAN METALS TRADING AND MACHINERY GROUP METALLGESELLSCHAFT AG WERE DISMISSED BLAMED FOR LOSING CONTROL OVER THE COMPANY'S OPERATIONS HEINZ SCHIMMELBUSCH CHAIRMAN OF THE MANAGEMENT BOARD AND MEINHARD FORSTER CHIEF FINANCIAL OFFICER ARE BEING DISMISSED BECAUSE THEY DIDN'T INFORM THE SUPERVISORY BOARD AT THE NOV 19 MEETING OF THE PROBLEMS WITH OILFUTURES CONTRACTS IN THE US THE SUPERVISORY BOARD SAID IN ADDITION THE BOARD CITED A LACK OF CONTROL BY THE TWO OVER THE COMPANY'S OPERATIONS MR SCHIMMELBUSCH WILL BE SUCCEEDED BY KAJO NEUKIRCHEN CHAIRMAN OF THE SUPERVISORY BOARD AT FAG KUGELFISCHER KGAA WHO HAS A REPUTATION FOR RESTRUCTURING COMPANIES IN THE WAKE OF THE FIRINGS FOUR MEMBERS OF THE MANAGEMENT BOARD SAID THEY WOULD DEPART SINCE DEC 6 METALLGESELLSCHAFT SHARES HAD FALLEN NEARLY 25 ON THE FRANKFURT STOCK EXCHANGE FRIDAY HOWEVER THEY REBOUNDED ON NEWS OF THE MANAGEMENT SHAKEUP FINISHING AT 30930 MARKS 181 UP FROM 293 MARKS THURSDAY ANALYSTS HAVE COMPLAINED THAT MR SCHIMMELBUSCH FAILED IN HIS PLEDGE TO CHANGE METALLGESELLSCHAFT FROM A METALS AND TRADING COMPANY INTO A CUTTINGEDGE ENVIRONMENTALTECHNOLOGY COMPANY IN SOME FURTHER MOVES MG CORP THE US SUBSIDIARY OF METALLGESELLSCHAFT NAMED HANSWERNER NOLTING TO THE NEWLY CREATED POSITION OF CHAIRMAN IT ALSO NAMED JOSEPH M RINALDY PRESIDENT AND CHIEF OPERATING OFFICER SUCCEEDING SIEGFRIED HODAPP WHO RESIGNED LAST WEEK 9312200005 931220 BOMBARDIER BOARD APPROVES NEW JET FOR FASTER GLOBAL CORPORATE TRAVEL BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL BOMBARDIER INC'S BOARD APPROVED THE COMPANY'S PLANNED GLOBAL EXPRESS JET SETTING UP A DOGFIGHT WITH GULFSTREAM AEROSPACE CORP IN THE MARKET FOR HIGHSPEED INTERCONTINENTAL BUSINESS AIRCRAFT THE NEW AIRCRAFT IS DESIGNED TO FLY FARTHER AND FASTER THAN OTHER CORPORATE JETS BOMBARDIER PROMISES THE GLOBAL EXPRESS WILL WHISK EIGHT PASSENGERS AND A CREW OF FOUR FROM TOKYO TO NEW YORK IN 12 HOURS IN A CABIN SPACIOUS ENOUGH TO HOUSE AN OFFICE CONFERENCE AREA AND STATEROOM THE TRANSPORTATIONEQUIPMENT MAKER ORIGINALLY SAID IT WANTED TO GATHER 40 FIRM ORDERS BEFORE MAKING AN OFFICIAL LAUNCH DECISION A SPOKESWOMAN FOR BOMBARDIER'S CANADAIR AIRCRAFT DIVISION WHICH OVERSEES THE PROJECT SAID FRIDAY WE'RE ON TARGET PRETTY MUCH FOR WHERE WE WANTED TO BE SHE DECLINED TO BE MORE SPECIFIC BOMBARDIER EXECUTIVES WILL HOLD A NEWS CONFERENCE TODAY TO DISCUSS THE PROJECT EXPECTED TO COST AROUND 1 BILLION CANADIAN US750 MILLION RISKSHARING PARTNERS WILL HELP COVER THE DEVELOPMENT COST MITSUBISHI HEAVY INDUSTRIES LTD OF JAPAN SUPPLYING THE WING AND CENTERFUSELAGE SECTIONS WILL SHOULDER ABOUT A THIRD OF THE TOTAL EXPENSES THE CANADAIR SPOKESWOMAN SAID BMW ROLLSROYCE GMBH A GERMANBRITISH COMPANY WILL BUILD THE ENGINE TALKS ARE UNDER WAY WITH OTHER PARTNERS FOR LANDING GEAR AND AVIONICS AND AGREEMENTS SHOULD BE COMING SHORTLY THE SPOKESWOMAN SAID BOMBARDIER BELIEVES THE POTENTIAL MARKET FOR GLOBAL BUSINESS JETS COULD TOTAL 550 TO 800 AIRCRAFT GULFSTREAM SAYS THE MARKET MAY BE AS SMALL AS 350 MUCH OF THE DEMAND IS EXPECTED TO COME FROM THE PACIFIC RIM WOLFGANG DEMISCH AN ANALYST WITH BT SECURITIES SAID THAT IF THE JETS PERFORM AS PLANNED AND IF ECONOMIC FORECASTS FOR ASIA ARE BORNE OUT THE MARKET COULD WELL BE MUCH CLOSER TO CANADAIR'S FORECAST THAN TO GULFSTREAM'S GULFSTREAM TOOK AIM AT CANADAIR LAST WEEK WITH A FULLPAGE AD IN THE WALL STREET JOURNAL OFFERING A 250000 DISCOUNT ON ITS GULFSTREAM V JET TO ANY CUSTOMER WHO CANCELS A DEPOSIT FOR BOMBARDIER'S JET BY DEC 31 I REGARD THIS AS OUR FRANCHISE SAID THEODORE FORSTMANN GULFSTREAM'S CHAIRMAN AND SENIOR PARTNER OF THE FORSTMANN LITTLE & CO BUYOUT FIRM WHICH ACQUIRED THE AIRCRAFT MAKER THREE YEARS AGO GULFSTREAM IS GOING TO HAVE THE ADVANTAGE OF EVERY SINGLE THING THAT FORSTMANN LITTLE CAN GIVE IT MR FORSTMANN WHO ASSUMED THE GULFSTREAM CHAIRMANSHIP RECENTLY SAID THE COMPANY'S MARKETING EFFORTS WEREN'T AS GOOD AS ITS PRODUCTS FOR EXAMPLE WHILE GULFSTREAM OFFERED ITS NEW JET FOR A FIXED PRICE OF 305 MILLION BOMBARDIER SAID IT PRICED THE GLOBAL EXPRESS AT 28 MILLION IN JANUARY 1994 DOLLARS ALLOWING AN INFLATION FACTOR THAT COULD RAISE THE PRICE BY THE TIME OF DELIVERY AROUND 1998 I WAS TIRED OF HEARING WE WERE 3 MILLION MORE EXPENSIVE SAID MR FORSTMANN WHO CONCEDED THAT CANADAIR'S MARKETERS HAVE BEEN VERY ADEPT BECAUSE THE GULFSTREAM V INVOLVES EVOLUTIONARY DEVELOPMENT BASED ON THE COMPANY'S PREVIOUS MODELS THE PROJECT'S COST WILL BE ONLY ABOUT 330 MILLION MR FORSTMANN SAID HE ADDED THAT THE AIRCRAFT WILL BE DELIVERED IN 1996 A CRUCIAL ELEMENT OF BOMBARDIER'S PLAN IS THE DEVELOPMENT OF A HIGHPERFORMANCE WING DESIGNED TO STORE 40000 POUNDS OF FUEL BOMBARDIER IS EMBARKING ON A TECHNICALLY MORE AMBITIOUS DESIGN THAN GULFSTREAM SAID MR DEMISCH THE ANALYST MY ASSUMPTION IS THAT ENOUGH HOMEWORK HAS BEEN DONE FOR BOMBARDIER AND MITSUBISHI TO MEET THE CHALLENGE 9312200004 931220 WHO'S NEWS UNILEVER NV'S CHAIRMAN MALJERS WILL RETIRE IN MAY SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM ANGLODUTCH CONSUMER PRODUCTS COMPANY UNILEVER NV SAID ITS CHAIRMAN FLORIS A MALJERS WILL RETIRE IN MAY AFTER WHAT WILL HAVE BEEN 10 YEARS AT THE HELM OF THE COMPANY THE 60YEAROLD MR MALJERS WHO BEGAN AT THE COMPANY 35 YEARS AGO ALSO WILL GIVE UP HIS SEAT AS VICE CHAIRMAN OF THE COMPANY'S UK ARM UNILEVER PLC UNILEVER NV IS BASED IN ROTTERDAM THE NETHERLANDS MR MALJERS WILL BE SUCCEEDED AT UNILEVER NV BY MORRIS TABAKSBLAT 56 CURRENT VICE CHAIRMAN AT THE DUTCH UNILEVER THE POSITION OF VICE CHAIRMAN OF UNILEVER PLC WILL BE FILLED BY NIALL FITZGERALD A UNILEVER DIRECTOR LONDONBASED UNILEVER PLC'S CHAIRMAN REMAINS MICHAEL PERRY THE NEWS OF MR MALJERS'S PLANNED RETIREMENT WASN'T EXPECTED IN THE INVESTMENT COMMUNITY IT WAS CLEARLY A SURPRISE AND ABSOLUTELY NOT EXPECTED BERT SIEBRAND ANALYST AT DELTA LLOYD BANK SAID A UNILEVER SPOKESWOMAN SAID MR MALJERS'S RETIREMENT IS QUITE NORMAL AND SHOULDN'T BE VIEWED AS UNUSUAL HIS PREDECESSOR FRANS VAN DEN HOOVEN ALSO RETIRED AT THE AGE OF 60 AFTER NINE YEARS AS UNILEVER NV CHAIRMAN THE UNILEVER SPOKESWOMAN COULDN'T SAY WHAT MR MALJERS WILL BE DOING AFTER HIS RETIREMENT IN HIS PREVIOUS CAPACITY AS REGIONAL DIRECTOR NORTH AMERICA AND CHIEF EXECUTIVE OF UNILEVER US MR TABAKSBLAT GUIDED THE COMPANY'S 1986 ACQUISITION OF US COSMETICS GROUP CHESEBROUGHPONDS AND THE 1989 PURCHASE OF PERSONALCARE PRODUCT COMPANIES ELIZABETH ARDEN AND FABERGE THEN CALVIN KLEIN PERFUMES WAS ACQUIRED BY UNILEVER IN 1990 MORE RECENTLY MR TABAKSBLAT HAS BEEN SUPERVISING THE REORGANIZATION OF UNILEVER'S FOOD ACTIVITIES 9312200003 931220 CHASE CREATES A MINIBANK WITHOUT HASSLE BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CHASE SECURITIES AND CRESCENT CAPITAL CORP HAVE RAISED 530 MILLION TO FUND CRESCENT MACH1 PARTNERS A LIMITED PARTNERSHIP THAT WILL INVEST IN CORPORATE LOANS AND HIGHYIELD SECURITIES IN ESSENCE CREATING A MINIBANK WITHOUT ALL THE HASSLES OF REGULAR BANKING WHILE THERE ARE SEVERAL INSTITUTIONAL FUNDS THAT INVEST IN BANK LOANS SUCH AS PROSPECT STREET SENIOR PORTFOLIO LP THIS IS THE FIRST MAJOR FUND THAT INTENDS TO INVEST IN ALL LEVELS OF CORPORATE CAPITAL AS A SORT OF ALLPURPOSE FUND WE BELIEVE IT'S TYPICAL OF THE NEXT GENERATION IN STRUCTURED FINANCE FOR COLLATERALIZED BOND AND LOAN FUNDS SAID CHAD LEAT MANAGING DIRECTOR AT CHASE SECURITIES A UNIT OF CHASE MANHATTAN CORP WHICH DEVELOPED AND STRUCTURED THE FUND CRESCENT CAPITAL A LOS ANGELES MONEY MANAGEMENT FIRM WILL MANAGE THE PORTFOLIO JUST LIKE A BANK THE FUND HOPES TO EARN FAT RETURNS BY OBTAINING CAPITAL AT A CERTAIN COST THEN PUTTING IT TO WORK AT A HIGHER RETURN BUT RATHER THAN TAKING DEPOSITS THE CRESCENT MACH1 FUND RAISED MONEY THROUGH A PRIVATE PLACEMENT OF 440 MILLION IN DEBT AND 90 MILLION IN EQUITY SUPPLIED BY CHASE AND OTHERS SUCH AS HICKS MUSE & CO A DALLAS BUYOUT FIRM ON THE OTHER SIDE OF THE BALANCE SHEET THE FUND WILL BUY 300 MILLION IN NONINVESTMENTGRADE LOANS AND 200 MILLION IN HIGHYIELD SECURITIES A SMALL 30 MILLION SLICE WILL BE INVESTED IN EQUITY MACH1 WILL HAVE LOW BORROWING COSTS BECAUSE 400 MILLION OF THE DEBT THAT IT SOLD IS RATED DOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND 40 MILLION BAA3 THE RATING ASSUMES THE FUND DIVERSIFIES ITS INVESTMENTS AND MAINTAINS A MINIMUM CREDIT QUALITY OF ITS ASSETS BECAUSE THE LIABILITIES ARE FLOATINGRATE BUT ASSETS ARE BOTH FIXED AND FLOATINGRATE THE FUND COULD BE SUSCEPTIBLE TO SWINGS IN INTEREST RATES MR LEAT SAID THE FUND HAS ENTERED INTO A DERIVATIVE INSTRUMENT CALLED A CAP WHICH LOCKS IN THE PROFIT SPREAD BETWEEN BORROWING RATES AND YIELDS IF RATES RISE ABOVE A CERTAIN THRESHOLD SOME HIGHER LEVERAGE BANK LOANS ARE ATTRACTIVE TO SOME INVESTORS BECAUSE THEY ARE SECURED BY COLLATERAL YIELD 2 TO 3 OVER THE LONDON INTERBANK OFFERED RATE AND ARE THE MOST SENIOR PART OF A COMPANY'S CAPITAL STRUCTURE BUT MACH1 WILL OFFER RETURNS MORE ATTRACTIVE THAN THE FUNDS THAT INVEST IN JUST LOANS BY HAVING THE ABILITY TO INVEST IN JUNK BONDS AS WELL AS A BIT OF EQUITY THE FUND'S RETURNS ARE EXPECTED TO BE GREATER THAN THOSE AT EXISTING FUNDS OF COURSE THAT CARRIES MORE RISK BECAUSE HIGHYIELD BONDS HAVE LONGER MATURITIES THAN CORPORATE LOANS IF YOU CAN ENHANCE RETURNS WITHOUT SIGNIFICANTLY INCREASING RISK THAT'S WHAT IT'S ALL ABOUT SAYS ONE PORTFOLIO MANAGER OF AN EXISTING LOAN FUND LOANS CERTAINLY CAN BE ATTRACTIVE INVESTMENTS ALTHOUGH THE EASY MONEY MIGHT HAVE BEEN MADE ALREADY A PORTFOLIO OF 20 HIGHLY LEVERAGED LOANS TABULATED BY LOAN PRICING CORP AND GOLDMAN SACHS & CO RETURNED 1067 YEARTODATE THROUGH FRIDAY IN ADDITION TO PURE INTEREST INCOME OF AROUND 6 RETURNS HAVE BEEN BOLSTERED BY PRICE RISES IN LOANS TO STONE CONTAINER CORP AND OTHER DEBTHEAVY COMPANIES THAT ARE CLEANING UP THEIR BALANCE SHEETS ALSO THE LOAN MARKET HAS BENEFITED FROM EARLY REPAYMENT OF LOANS TYPICALLY BANKS SPREAD OUT BOOKING THE FEES EARNED FROM LOANS OVER THE LIFE OF A LOAN BUT WHEN LOANS ARE PREPAID BANKS RECEIVE THE SAME AMOUNT OF FEES OVER A SHORTER DURATION THAT MAKES A LOT OF MONEY FOR SHAREHOLDERS SAYS STEVEN MILLER SENIOR ANALYST AT LOAN PRICING A NEW YORK FIRM THAT ANALYZES THE CORPORATE LOAN MARKET 9312200002 931220 HEARD ON THE STREET BIOTECHNOLOGY EXPERTS RECOMMEND LOOKING BEYOND GENENTECH FOR THE SECTOR'S BEST BETS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL SOMETIMES THE OBVIOUS CHOICE ISN'T THE BEST CHOICE FOR PEOPLE WHO WANT TO INVEST IN BIOTECHNOLOGY STOCKS THE OBVIOUS CHOICE IS GENENTECH BUT INDUSTRY EXPERTS SAY THERE ARE BETTER BUYS AROUND SURE GENENTECH BOASTS AN IMPRESSIVE PIPELINE OF NEW PRODUCTS THE BACKING OF GIANT ROCHE HOLDING OF SWITZERLAND AND THE POSSIBILITY OF A TAKEOVER BY ROCHE BUT THE STOCK HAS RUN UP 30 THIS YEAR WHILE MANY OF ITS RIVALS ARE DOWN GENENTECH SELLS FOR A MASSIVE 124 TIMES ITS EARNINGS FOR THE PAST FOUR QUARTERS MOREOVER GENENTECH'S UPSIDE SEEMS LIMITED ROCHE WHICH HOLDS A MAJORITY OF ITS SHARES HAS AN OPTION TO BUY THE REST BETWEEN NOW AND JUNE 30 1995 AT PRESET PRICES SCALING UP TO 60 AT THE END OF THE PERIOD ON FRIDAY GENENTECH TRADED AT 48 3/4 ON THE BIG BOARD SO THE BIGGEST 18MONTH GAIN A GENENTECH INVESTOR CAN REASONABLY HOPE FOR IS 23 PEOPLE WHO TREAD THE GLAMOROUS BUT DANGEROUS TURF OF BIOTECHNOLOGY OFTEN HOPE FOR GAINS OF 100 200 OR MORE HERE ARE THE CURRENT FAVORITES OF SOME ANALYSTS AND MONEY MANAGERS WHO KNOW THE BIOTECHNOLOGY SECTOR WELL JAMES MCCAMANT EDITOR OF MEDICAL TECHNOLOGY STOCK LETTER THINKS THE BEST BARGAINS IN THE BIOTECH SECTOR NOW ARE SMALL COMPANIES HE PARTICULARLY LIKES AGOURON PHARMACEUTICALS A SAN DIEGO COMPANY THAT IS TRYING TO DEVELOP DRUGS TO COMBAT CANCER AIDS AND ARTHRITIS SYNTEX A JOINTVENTURE PARTNER WOULD MARKET ANY ARTHRITIS PRODUCTS MR MCCAMANT CONSIDERS AGOURON A LEADER IN ITS TECHNOLOGY FOR RATIONAL DRUG DESIGN BASED ON THE STUDY OF THE STRUCTURES OF PROTEINS EVEN BY BIOTECH STANDARDS AGOURON IS SPECULATIVE THE COMPANY HAS NO DRUGS ON THE MARKET OR IN LATER STAGES OF TESTING MR MCCAMANT SAYS AGOURON'S PROPOSED AIDS DRUG WILL ENTER PHASE 1 CLINICAL TRIALS THE FIRST OF THREE PHASES DEALING ONLY WITH SAFETY AND DOSAGE NEXT YEAR AMONG THE BIG FIVE GENENTECH AMGEN BIOGEN CHIRON AND GENZYME MR MCCAMANT LIKES CHIRON BEST IT HAS THE BROADEST PIPELINE OF ANY OF THESE COMPANIES HE SAYS MR MCCAMANT BELIEVES CHIRON MIGHT HAVE A VACCINE AGAINST HERPES ON THE MARKET AS EARLY AS LATE 1995 IN THE MEANTIME HE SAYS SUBSTANTIAL EARNINGS INCREASES ARE IN THE BAG FROM SALES OF BETASERON ITS NEW DRUG FOR TREATMENT OF MULTIPLE SCLEROSIS MR MCCAMANT ESTIMATES CHIRON WILL EARN 60 CENTS A SHARE THIS YEAR AT LEAST 160 NEXT YEAR AND 4 IN 1995 MOST ANALYSTS HE SAYS ARE LOOKING FOR ONLY 2 TO 3 A SHARE IN 1994 THE STOCK IS AT 80 1/2 ON THE NASDAQ STOCK MARKET KAREN FIRESTONE MANAGER OF FIDELITY SELECT BIOTECHNOLOGY PORTFOLIO LIKES COR THERAPEUTICS A SMALL SOUTH SAN FRANCISCO CALIF COMPANY WORKING ON CARDIOVASCULAR DRUGS SHE SEES MAJOR POTENTIAL IN INTEGRELIN A DRUG NOW IN PHASE 3 TRIALS LARGESCALE DOUBLEBLIND TESTS TO REDUCE ADVERSE EFFECTS IN ANGIOPLASTY OPERATIONS RESULTS OF PHASE 2 TRIALS SUGGEST THAT THE DRUG IS VERY EFFECTIVE SHE SAYS LINDA MILLER BIOTECH ANALYST AT PAINEWEBBER HAS NO TABLEPOUNDING BUYS AT CURRENT PRICES BUT RECOMMENDS GENENTECH BIOGEN AND AMGEN THE THREE STOCKS APPEAL TO DIFFERENT TYPES OF INVESTORS SHE SAYS AMGEN HAS THE BEST IE CHEAPEST VALUATION BIOGEN HAS A ROBUST PIPELINE AND GENENTECH IS MORE CONSERVATIVE WITH LESS VOLATILITY AS A RESULT OF ITS AFFILIATION WITH ROCHE EVAN STURZA EDITOR OF STURZA'S MEDICAL INVESTMENT LETTER IS EXCITED ABOUT IMMULOGIC PHARMACEUTICAL WHICH CONCENTRATES ON THE UNGLAMOROUS BUT POTENTIALLY LUCRATIVE ALLERGY AREA THE FIRST PRODUCT IMMULOGIC HOPES TO MARKET IS A VACCINE TO CURE ALLERGY TO CATS CALLED CATVAX DEVELOPED IN A PARTNERSHIP WITH MARION MERRELL DOW THE VACCINE IS NOW IN PHASE 2 TRIALS SMALLSCALE TESTS OF EFFICACY THE COMPANY IS ALSO TRYING TO COME UP WITH CURES FOR ALLERGIES TO JAPANESE CEDAR POLLEN WHICH AFFECTS SOME EIGHT MILLION PEOPLE IN JAPAN AS WELL AS MITE DUST AND RAGWEED IMMULOGIC HOLDS 90 MILLION IN CASH OR ABOUT 650 A SHARE MR STURZA SAYS THE STOCK WAS TRADING AT 9 7/8 FRIDAY ON THE NASDAQ STOCK MARKET EVEN IF THE CAT VACCINE BOMBS YOU'LL ONLY GO DOWN TO 7 OR 8 MR STURZA SAYS IF IT WORKS I THINK IT GOES INTO THE MID20S 9312200001 931220 WHAT'S NEWS BUSINESS AND FINANCE VIACOM AND ITS RIVAL BIDDER QVC ARE EACH EXPECTED TO SWEETEN THEIR CASHANDSTOCK TAKEOVER OFFERS FOR PARAMOUNT TODAY OBSERVERS BELIEVE PARAMOUNT ULTIMATELY WILL FETCH MORE THAN 10 BILLION WITH A CONSIDERABLY HIGHER CASH PORTION TO THE OFFER THAN IN PREVIOUS BIDS BEFORE THE THREEMONTHLONG TAKEOVER BATTLE BEGAN INDUSTRY EXECUTIVES AND ANALYSTS ESTIMATED THAT PARAMOUNT WAS VALUED AT BETWEEN 8 BILLION AND 9 BILLION PARAMOUNT LEFT OPEN THE POSSIBILITY OF SUCCESSIVE ROUNDS OF BIDDING THE AUCTION WOULD END WHEN ONE OF THE OFFERS DRAWS 51 OF PARAMOUNT SHARES BORDEN'S DIRECTORS ARE CONSIDERING PUTTING THE COMPANY UP FOR SALE PEOPLE CLOSE TO THE BOARD SAID OTHER DIRECTORS FAVOR SHEDDING MAJOR PARTS OF THE FARFLUNG FOOD AND CHEMICALS EMPIRE RETAIL STORES REVVED UP PROMOTIONS TO COMBAT A LULL BEFORE THE SALES SURGE THEY HOPE WILL MATERIALIZE THIS FINAL WEEK OF THE CHRISTMAS RETAIL SEASON SALES ARE AHEAD OF LAST YEAR BUT AREN'T AS ROBUST AS SOME HAD HOPED HOUSING STARTS CLIMBED 39 IN NOVEMBER THE RISE MARKS THE FOURTH CONSECUTIVE MONTHLY INCREASE SUGGESTING A STRENGTHENING SECTOR THAT WILL SPUR ECONOMIC GROWTH IN THIS QUARTER AND NEXT ECONOMISTS SAID IBM'S PERSONAL COMPUTER UNIT IS EXPECTED TO SAY THAT TECHNICAL PROBLEMS WILL FORCE A MONTHSLONG DELAY IN DELIVERING UPDATED VERSIONS OF TWO TOPOFTHELINE PS/2 MODELS DISAPPOINTING SOME BIG CORPORATE ACCOUNTS WHICH WERE PROMISED THE PRODUCT LAST FALL GENERAL MOTORS RAISED PRICES ON ITS 1994 MODELS FOR THE SECOND TIME EVEN AS SOME ECONOMISTS WARN THAT STEADILY RISING PRICES WILL HURT SALES NEWS CORP'S FOX NETWORK WON THE BIDDING FOR THE PREMIER PORTION OF THE NFL'S TV RIGHTS PACKAGE WITH A 156 BILLION OFFER BEATING OUT CBS WHICH HAS AIRED THE GAMES FOR 38 YEARS VOLKSWAGEN AGREED TO FORGIVE 819 MILLION IN DEBT OWED BY ITS STRUGGLING SPANISH UNIT IN EXCHANGE FOR MASSIVE JOB CUTS AND THE CLOSING OF A PLANT INTEREST RATES WILL HOLD STEADY THROUGH AT LEAST THE FIRST THREE MONTHS OF NEXT YEAR TREASURY SECRETARY LLOYD BENTSEN SAID EVEN THOUGH HE EXPECTS THE ECONOMY TO GROW AT A 4 TO 5 ANNUAL RATE IN THE FOURTH QUARTER AT&T INTRODUCED HOMESPUN TV COMMERCIALS AIMED AT THWARTING MCI'S GROWTH IN THE LONGDISTANCE MARKET AND REPLACING ITS TROUBLED AND SHORTLIVED I PLAN CAMPAIGN MERRILL LYNCH'S RELATIONSHIP WITH A FORMER ADVISER TO A MASSACHUSETTS WATER AGENCY ONE OF THE NATION'S LARGEST MUNICIPALBOND ISSUERS IS BEING INVESTIGATED FOR CONFLICTS OF INTERESTS U S WEST POSTPONED AN INITIAL PUBLIC OFFERING OF ITS BONDINSURANCE UNIT VALUED AT UP TO 3375 MILLION METROPOLITAN LIFE WAS TOLD BY FLORIDA TO HOLD OFF PAYING EXECUTIVE BONUSES UNTIL IT SETS UP RESERVES TO COVER POSSIBLE FINES AND CLAIMS ARISING FROM INVESTIGATIONS INTO ITS SALES PRACTICES FIRST CITY BANCORP OF TEXAS SAID THE FDIC AGREED TO GUIDELINES TO SETTLE LITIGATION OVER THE SEIZURE OF ITS BANKS INCLUDING AN INITIAL FUNDING THAT WILL REPAY FIRST CITY CREDITORS IN FULL KODAK'S NEW CHAIRMAN RECEIVED OPTIONS TO BUY 750000 KODAK SHARES VALUED AT 13 MILLION TO 17 MILLION WHICH COMPENSATION CONSULTANTS SAID IS COMPETITIVE BUT NOT UNUSUALLY HIGH MERCK IS STEPPING UP DEVELOPMENT OF AN EXPERIMENTAL DRUG AGAINST AIDS BASED ON RESULTS OF SEVERAL SMALL INITIAL TESTS OF THE DRUG ON HUMANS BONDS LEHMAN BROTHERS TREASURY INDEX 552868 UP 2422 COMMODITIES OIL 1391 A BARREL OFF 32 CENTS DOW JONES FUTURES INDEX 14185 UP 153 SPOT INDEX 12591 UP 140 DOLLAR 11018 YEN UP 063 17090 MARKS OFF 00003 9312200053 931119 STRIKING OUT WOMEN IN POLAND FIND LITTLE LIBERATION IN SHIFT TO DEMOCRACY FREE MARKET SHEARS THEM OF JOBS AND BENEFITS ABORTIONS ARE A NONO HORROR OF THE PLASTIC BAGS' BY BARRY NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL WALBRZYCH POLAND THE WORKERS OF THE STATEOWNED PORCELANA CHINA FACTORY WENT ON STRIKE IN 1980 AGAINST THE EVILS OF COMMUNISM AND IN FAVOR OF POLITICAL LIBERATION IN 1993 THE WORKERS OF THE PRIVATELY OWNED PORCELANA CHINA FACTORY WENT ON STRIKE AGAINST THE EVILS OF CAPITALISM AND IN FAVOR OF WOMEN'S LIBERATION THE FIRST STRIKE TOOK A DECADE TO SHOW RESULTS THE SECOND MIGHT TAKE LONGER COMMUNISM WAS NO PICNIC BUT IT GAVE WOMEN STANDING AT WORK AND SECURITY AT HOME NOW THEY HAVE GOT STRESS AT WORK AND STRIFE AT HOME POLES ARE SO AGGRIEVED AT HOW CAPITALISM HAS BEEN THRUST ON THEM THAT IN SEPTEMBER THEY VOTED THE OLD ORDER'S DESCENDANTS BACK INTO POWER POLISH WOMEN HAVE REASON TO FEEL MORE AGGRIEVED THAN MOST WITNESS THE WORLD VIEW OF PORCELANA'S NEW OWNERS NO ONE DISCRIMINATES AGAINST WOMEN IN OUR COUNTRY SAYS WIESLAW HERBOWICZ DEPUTY CHAIRMAN OF THE BOARD IN THE FACTORY'S ONE WELLLIGHTED ROOM WHERE BUYERS EXAMINE SOUP BOWLS AND GRAVY BOATS HE WATCHES HIS SECRETARY POUR HIM A CUP OF COFFEE THEN LISTS THOSE OF HER SEX WHO HAVE MADE IT ALL THE WAY UP TO LOWER MANAGEMENT WE DON'T TAKE INTO ACCOUNT WHETHER IT'S A MAN OR A WOMAN WHEN WE APPOINT A FOREMAN MR HERBOWICZ SAYS EXPERIENCE COUNTS EDUCATION WHETHER OR NOT HE'S A GOOD COMMUNICATOR OR SHE IN A CLUTTER OF SHEDS UNDER THE SULFUROUS SKY OF THIS SILESIAN COAL TOWN 740 PEOPLE MAKE POTS FOR PORCELANA 520 ARE WOMEN BUT OF 60 FOREMEN ONLY HALF AREN'T MEN NO FEMALE IS ON THE MANAGING BOARD THE TWOMONTH STRIKE LAST SUMMER WASN'T ABOUT PROMOTIONS THOUGH POLISH WOMEN HAVEN'T COME THAT FAR IT WAS ABOUT LAYOFFS AND LOW PAY THE COMPANY AGREED TO THINK THOSE THINGS OVER AND WORK RESUMED IN AUGUST BUT AT ROOT THE STRIKE WAS ALSO ABOUT OWNERSHIP THE WOMEN OF PORCELANA BELIEVE THEY GOT A BETTER SHAKE FROM THE STATE MR HERBOWICZ WHOLEHEARTEDLY AGREES DAY CARE HOLIDAY RESORTS SUBSIDIES FOR SINGLE MOTHERS HE SAYS THESE WOMEN GOT ALL KINDS OF ASSISTANCE IT WAS A CUSTOM A HABIT THEY GOT SOFT TREATMENT FROM MANAGEMENT NOW THEY HAVE LOST THESE GRANTS THIS FACTORY PAYS ONLY FOR WORK DONE ANNA BINIECKA GOT THE MESSAGE LAST DECEMBER FIVE MONTHS AFTER PORCELANA WENT PRIVATE SHE RETIRED AT AGE 56 ON A 100AMONTH PENSION DIVORCED SHE LIVES WITH HER YOUNGER DAUGHTER WHO WORKS AT THE FACTORY FOR 85 A MONTH AN OLDER DAUGHTER WHO IS SEPARATED WORKS HERE TOO SHE HAS THREE CHILDREN MRS BINIECKA SCRUBS FLOORS IN A MUSEUM TEN HOURS A WEEK TO BUY HER GRANDCHILDREN'S CLOTHES I'D CRAWL TO WORK IF I HAD TO SHE SAYS PASSING PORCELANA ON HER WAY TO THE MUSEUM ONE DAY BUT SHE WAS GLAD TO RETIRE THE MOOD CHANGED WHEN THEY WENT PRIVATE THEY TOLD US WE'D BE BETTER OFF NOW A LOT OF PEOPLE HAVE TO RELY ON CHARITY MRS BINIECKA LOOKS THIN AND CHILLY IN A SHINY ORANGE BLOUSE UNDER A SHINY VIOLET COAT I CAN'T GET USED TO POVERTY SHE SAYS ALL I KNOW IS THAT WOMEN IN POLAND ARE HAVING IT VERY TOUGH AS USUAL SEXUAL EQUALITY LIKE ETHNIC HARMONY WAS SO MUCH A PART OF THE EAST BLOC'S PARTY LINE THAT WOMEN COULD BARELY SEE THE HALF DEEDS BEHIND THE HIGH IDEALS ENCOURAGED TO WORK THEY WERE PAID POORLY AND KEPT OUT OF MANAGEMENT GIVEN SEATS IN PARLIAMENT THEY VOTED ON COMMAND AND WERE KEPT OUT OF POWER COMMUNIST POLAND REMAINED THE LAST COUNTRY IN EUROPE WHERE MEN KISSED WOMEN'S HANDS AND AMONG THE LAST WHERE MEN NEVER DID A JOT OF HOUSEWORK THE POLAND OF CAPITALISM HASN'T CHANGED DATERAPE ISN'T AN ISSUE HERE NEITHER IS NONDATERAPE POLISH WOMEN DRESSED FOR THE OFFICE TAKE NO OFFENSE AT PHOTOS OF UNDRESSED WOMEN ON OFFICE WALLS THEY TAKE SEXUAL HARASSMENT AS A COMPLIMENT AS SOON AS WOMEN'S WORK LIKE BANKING BEGAN PAYING GOOD MONEY MEN BEGAN SNAGGING THE BEST JOBS AND NOW THAT PARLIAMENT IS FREELY ELECTED WOMEN ARE RARELY ELECTED HANNA SUCHOCKA APPOINTED PRIME MINISTER FOR A YEAR WATCHED THE MEN IN PARLIAMENT PASS A LAW LAST MARCH THAT PUTS POLISH WOMEN IN A SITUATION FACED BY NO OTHERS IN THE EAST THE STRICTEST ABORTION BAN THIS SIDE OF IRELAND THE EXCOMMUNISTS WHO UNSEATED HER WANT TO REPEAL THE LAW BUT THEY ARE AS UNLIKELY TO REPAIR THE PSYCHIC SHOCK AS THEY ARE TO REINSTATE THE COMFORT OF A GUARANTEED JOB A WOMAN LIKE BARBARA BARTINOWSKA MERCIFULLY UNPREGNANT HAS TO FIND LIVING SPACE SOMEWHERE BETWEEN THE FADING PAST AND A PRECARIOUS FUTURE SHE HAS COME TO PORCELANA'S OFFICE BUILDING TO RESIGN EVERYONE IS TRYING TO GET A JOB AND I'M QUITTING SHE SAYS I'M QUITTING BECAUSE OF THE MONEY AT 28 SHE HAS BEEN AT PORCELANA 11 YEARS STICKING DECALS ON CUPS FOR 90 A MONTH SHE SPENT THREE COMMUNISTSUBSIDIZED YEARS ON CLOSE TO FULL PAY AT HOME WITH HER FIRST BABY AND THE PAST TWO YEARS AT HOME WITH HER SECOND BABY WHILE WARSAW'S NEW SKINFLINTS CHIPPED AT HER MATERNITY BENEFIT NOW THEY WILL PART WITH ONLY 15 A MONTH IN HER LEAVE'S FINAL YEAR AND PORCELANA DOESN'T HAVE TO REHIRE HER UNTIL IT OFFICIALLY ENDS SO MRS BARTINOWSKA HAS A CHOICE SHE CAN TRY TO GET BY AND GO BACK TO WORK IN A YEAR OR SHE CAN QUIT GET 75 A MONTH ON THE DOLE FOR 18 MONTHS AND LOSE HER JOB FOR GOOD HER HUSBAND A REPAIRMAN EARNS 160 A MONTH PORCELANA NO LONGER PAYS FOR DAY CARE THAT'S 35 A MONTH MRS BARTINOWSKA WOULD DO BETTER TO WORK NIGHTS AND CARE FOR THE CHILDREN HERSELF DURING THE DAY I'M TAKING A RISK SHE SAYS I HOPE I FIND A NIGHT JOB ANYWAY IT'S GOOD TO BE WITH YOUR CHILD I'M NOT SAYING CAPITALISM IS BAD BUT IN MY CASE IT ISN'T WORKING VERY WELL MANY POLISH WOMEN WOULDN'T BE SO KIND TOTALITARIANISM AT LEAST GAVE THEM ROOM TO PRODUCE AND TO REPRODUCE DEMOCRACY HAS EASED THEM OFF THE SHOP FLOOR AND ALL BUT ORDERED THEM HOME TO MAKE BABIES ONCE 46 OF THE WORK FORCE WOMEN ARE 56 OF THE OUTOFWORK HERE IN WALBRZYCH POPULATION 143000 THE JOBLESS RATE IS 25 5500 MEN AND 7500 WOMEN BOZENA ZACZKIEWICZ WASN'T ABOUT TO JOIN THEM SHE LOADS TRUCKS FOR PORCELANA AND LOOKS LIKE A HEROINE OF SOCIALIST REALISM SOLID BUILD WEATHERED SKIN PALEORANGE HAIR SHE IS 40 HAS RAISED FOUR CHILDREN WITHOUT A LEAVE AND LOADED 40 TONS A DAY FOR 19 YEARS HER HUSBAND HAD A JOB IN A GLASSWORKS UNTIL HIS LUNGS WENT NOW HE IS UNEMPLOYED THE FAMILY LIVES IN A TWOROOM APARTMENT ON 145 A MONTH LIFE WASN'T LUXURIOUS BEFORE SHE SAYS SITTING ON THE LOADING DOCK NEXT TO A STACK OF BOXED DISHWARE BUT WE WENT TO THE MOVIES WE WENT DANCING NOW IT'S WORK HOME WORK HOME WHEN PORCELANA'S NEW OWNERS TOOK OVER MRS ZACZKIEWICZ FOUND HER NAME ON A LAYOFF LIST 200NAMES LONG THEY WANT YOUNG GIRLS SHE SAYS NICE LOOKING DO YOU NEED A DOLL NO YOU WANT PEOPLE WHO WILL WORK BUT THEY WANT THEM ON SHORT TIME A MONTH OR TWO THEN THROW THEM OUT THEY DON'T WANT TO PAY ALL KINDS OF BENEFITS THAT'S WHY WE HAD THIS STRIKE THANKS TO THE STRIKE HER JOB IS SAFE FOR NOW AND SHE HAS BOXES TO LOAD SHE STANDS AND STRETCHES FISTS IN THE SMALL OF HER BACK HERE IN POLAND SHE SAYS A WOMAN IS USED FOR EVERYTHING FOR WORK FOR HAVING CHILDREN FOR CLEANING UP A MAN EATS LIES DOWN READS THE PAPER GOES AND DRINKS VODKA WITH HIS FRIENDS YOU HAVE TO SHUT UP ABOUT IT SHE GRABS A BOX THEN STOPS BUT MAYBE MEN ARE BETTER AT MAKING DECISIONS I BELIEVE THAT IF WOMEN AND MEN WORK TOGETHER IT'S BETTER TO HAVE A MAN IN CHARGE THE MEN WHO WERE IN CHARGE UNTIL 1989 GAVE ONE GREAT GIFT TO WOMEN EDUCATION BY THEN THREE QUARTERS OF POLAND'S WOMEN WORKERS WERE HIGHSCHOOL GRADUATES WOMEN EARNED HALF OF ALL COLLEGE DEGREES AND 60 OF ALL ECONOMICS DEGREES ACCOUNTANTS TEACHERS DOCTORS LAWYERS AND JUDGES WERE MOSTLY WOMEN NEWLY PRIVATE COMPANIES MIGHT HAVE DUG INTO THIS GOLD MINE THEY HAVEN'T I'M AMBITIOUS ELZBIETA SZULC SAYS I COULD HAVE A BETTER JOB I'D LIKE TO WORK WITH THE COMPUTER I LEARNED ALL ABOUT IT BUT AT PORCELANA SHE HAS A CLERICAL JOB ABOUT LEVEL WITH THE LOADING DOCK THAT'S AFTER HIGH SCHOOL PLUS SIX YEARS' TRAINING IN CERAMICS TECHNOLOGY MRS SZULC IS 41 HAS WORKED HERE 22 YEARS AND GETS 100 A MONTH SHE IS GOING NOWHERE AS FAST AS ANY WELLSCHOOLED POLISH WOMAN MEN ARE MOVING INTO LAW AND PHARMACY MEN FILL THE NEW BUSINESS SCHOOLS NOW MEN EVEN TEND BAR AND KEEP SHOP WANT ADS CALL BLATANTLY FOR FEMALE SECRETARIES AND MALE MANAGEMENT TRAINEES THE ONE FEMININE VOCATION CAPITALISM WAS SUPPOSED TO UNTANGLE SHOPPING HAS ONLY GOTTEN KNOTTIER WOMEN ONCE WASTED HOURS HUNTING SCARCE GOODS NOW THEY HUNT BARGAINS SOME NEW AND EXPENSIVE THINGS CAN'T BE RESISTED TOILET PAPER TAMPONS AND TIGHTS OTHERS CAN BE DISPOSABLE DIAPERS STRONG CLEANSERS BUBBLE BATH DOWN THE ROAD FROM PORCELANA AT WALBRZYCH'S GLEAMING TOY STORE MOTHERS HAVE TO TUG THEIR CHILDREN AWAY FROM THE BARBIE DOLLS AND RADIO CARS FOR A FEW EVEN FRUIT STANDS ARE NOGO ZONES MY BOY WANTS A BANANA SAYS A WOMAN IN THE STREET I CAN'T BUY IT IT'S WORSE NOW THAN WHEN WE HAD NO BANANAS NOW YOU HAVE TO LOOK AT THEM THE DRUG STORE ON THE TOWN SQUARE SELLS ONE PRODUCT WOMEN MIGHT DO WELL NOT TO RESIST BUT RESIST ANYWAY SHELVES ARE PILED WITH SHAMPOOS CREAMS VITAMINS EVERYTHING BUT CONTRACEPTIVES THEY MUST BE ASKED FOR LOUDLY A CLERK PRODUCES A NEWSTYLE POLISH CONDOM CALLED LUST IT HAS A NAKED WOMAN ON THE COVER NOT A BONUS FOR SOMEONE AFRAID TO ADVERTISE THAT SHE AND HER MATE USE BIRTH CONTROL ONLY 10 OF POLAND'S WOMEN USE IT IN ANY FORM FOR THE REST BIRTH CONTROL MEANS ABORTION THE DEFEATED GOVERNMENT PROMISED TO FOLLOW ITS ABORTION BAN WITH A SEXEDUCATION CAMPAIGN BUT DIDN'T GET TO IT THE CONSEQUENCES ARE ILLEGAL ABORTION MILLS AND ABORTION TOURS TO PLACES WHERE ABORTIONS ARE STILL LEGAL THE PRESS IS FULL OF REPORTS OF UNWANTED BABIES MURDERED AND TOSSED AWAY THEY ARE CALLED PLASTIC BAGS AT WALBRZYCH'S HOSPITAL THE PAIN ON STEFAN BIALENSKI'S FACE SUMS IT UP A NEW KIND OF WOMAN HAS APPEARED THE GYNECOLOGIST SAYS IN HIS CONSULTING ROOM AS SOON AS THEY COME IN THEY START CRYING THEY SAY THEY'RE GOING TO COMMIT SUICIDE THE POOR ONES WE TRY TO HELP WE FIND NONEXISTENT DISEASES THAT CALL FOR ABORTIONS BUT MANY LEAVE MY COLLEAGUES' OFFICES WITH NO HELP THEN WE FIND THEM IN THE HOSPITAL WITH COMPLICATIONS FROM TRYING TO ABORT THEMSELVES SOME POLISH WOMEN FAR FROM HERE KNOW THAT LIBERATION OUGHT TO BE A GENDERLESS NOUN MANY BECOME OWNERS OF SMALL BUSINESSES A FEW FEMINISTS TRY TO EXPOSE SUCH HORRIFIC BYPRODUCTS OF FREEDOM AS THE ENSLAVEMENT OF YOUNG WOMEN TO WESTERN PROSTITUTION RINGS IN WARSAW WOMEN ACADEMICS HAVE QUASHED THEIR MANDATORY RETIREMENT AGE OF 60 AND STARTED POLAND'S FIRST WOMEN'SSTUDIES COURSE WOMEN'S MAGAZINES RUN CATCHLINES LIKE DON'T BE AFRAID OF SUCCESS THE WOMEN OF PORCELANA HAVE NO TIME FOR ANY OF THIS THEY'RE TOO BUSY FIGHTING THE FEAR OF FAILURE THEIR FAMILIES ONCE CLOISTERED FROM COMMUNISM NOW CONDENSE THE TENSIONS OF CAPITALISM WOMEN CARE FOR ELDERLY RELATIVES SUDDENLY WITHOUT SAVINGS WOMEN BUOY THE EGOS OF UNEMPLOYED HUSBANDS THEY STRAIN TO HOLD THEIR JOBS SAVE THEIR ZLOTYS NURTURE THEIR CHILDREN PRESERVE THEIR MARRIAGES IT'S 2 PM QUITTING TIME IN PORCELANA'S GLAZING DEPARTMENT ON HER WAY HOME IN A RUSH STANISLAWA PRYTIAK SITS OUTSIDE THE LOCKER ROOM AND TELLS THE STORY OF HER LIFE THE THREEMINUTE VERSION I HAVE A FIVEYEAR OLD GIRL SHE SAYS I NEVER GET TO PLAY WITH HER AFTER WORK I RUN AS FAST AS I CAN TO PICK HER UP FROM MY MOTHER'S AND THEN I DO THE SHOPPING WHEN I GET HOME I HAVE TO GET DOWN TO WORK THE CLEANING THE WASHING SHE FIDGETS AND GLANCES AT THE CLOCK SHE CONTINUES MY HUSBAND LOST HIS JOB IT'S VERY HUMILIATING HE CAN'T SUPPORT THE FAMILY WE ARGUE ALL THE TIME BECAUSE THERE'S NO MONEY WE HAVE TO PAY FOR THE APARTMENT IF NOT WE'LL BE THROWN OUT WHEN I THINK NOW THAT I HAVE TO BUY WINTER CLOTHES FOR MY KID AND I CAN'T AFFORD IT I FEEL LIKE CRYING SOMETIMES YOU DON'T WANT TO LIVE THERE'S NO SENSE TO IT I HAVE TO RUN ALL THE TIME THAT'S ALL MRS PRYTIAK HAS TIME FOR SHE HAS TO RUN SEE RELATED LETTER LETTERS TO THE EDITOR HANDKISSING IN POLAND WSJ DEC 20 1993 9311190021 YY93 MM12 9312200018 931123 LETTERS TO THE EDITOR IF THE SNAILS SUFFER SO DO THE FARMERS ON ENVIRONMENTAL ISSUES YOUR EDITORIAL PAGE HAS SELDOM BEEN FULL OF SURPRISES YOUR EDITORIAL ABOUT THE ENDANGERED SPECIES ACT THE EMOTIONAL SPECIES ACT NOV 2 WAS AT LEAST A BENCHMARK OF CONSISTENCY ONCE AGAIN WE HAVE A VILLAIN A HAPLESS SNAIL THAT LIVES IN HOT SPRINGS IN THE BRUNEAU VALLEY IN IDAHO AND THE FEDERAL GOVERNMENT IN THE FORM OF THE US FISH AND WILDLIFE SERVICE RUSHING TO KICK FARMERS OFF THEIR LAND WRECK THEIR FAMILIES SEND THEIR CHILDREN TO ORPHANAGES AND WORSE THIS MAKES FOR WHAT EDITORS WILL CALL A GOOD STORY BUT IT BRINGS TO MIND THE ADMISSION FROM THE PUNISHED SON DAD I WANTED TO TELL YOU THE TRUTH BUT IT JUST DIDN'T SOUND RIGHT FARMERS AND RANCHERS IN THE BRUNEAU VALLEY WHO ARE HONEST HARDWORKING FOLKS HAVE A REAL RIGHT TO BE CONCERNED WITHIN THE PAST 25 YEARS THE LEVEL OF GROUNDWATER IN THE REGIONAL AQUIFER SYSTEM HAS STEADILY DECLINED DUE TO OVERPUMPING AS A RESULT HOT SPRINGS ARE DRYING UP AND THE FUTURE OF IRRIGATED AGRICULTURE IS ALSO THREATENED THE STORY OF THE SNAIL IS REALLY THE STORY OF ANOTHER SERIOUS HUMAN PROBLEM SIMILAR IN SOME RESPECTS TO THE SPECIES THREATENED BY OVERPUMPING OF THE EDWARD AQUIFER IN TEXAS WITH DIMINISHING GROUNDWATER SUPPLIES A NONHUMAN SPECIES IS SENDING A SIGNAL THAT A PART OF THE SYSTEM UPON WHICH HUMANS ALSO DEPEND IS OUT OF WHACK AND NEEDS FIXING IF IT IS NOT FIXED FARMERS AS WELL AS SNAILS WILL SOON SUFFER SEVERELY IN THE TEXAS CASE INTERIOR SECRETARY BRUCE BABBITT MET WITH LOCAL AND STATE OFFICIALS AND TOLD THEM THEY NEEDED A GROUNDWATER MANAGEMENT PLAN THE TEXAS LEGISLATURE CAME UP WITH A GOOD ONE PROBLEM SOLVED FOR THE BRUNEAU SNAIL THERE WERE THREE CHOICES LIST IT AS ENDANGERED AND HAVE A WATER PROBLEM DON'T LIST IT AND HAVE A WATER PROBLEM OR ROLL UP OUR SLEEVES AND SEE IF IDAHOANS COULD DEVISE A GROUNDWATER MANAGEMENT STRATEGY THAT WOULD BE BETTER FOR EVERYONE'S LONGTERM WATER INTERESTS AND PRESERVE THE HOT SPRINGS WHERE THE SNAILS LIVE AS WELL THE PAST TWO FEDERAL ADMINISTRATIONS CHOSE THE SECOND COURSE FOR EIGHT YEARS IN THE FACE OF POLITICAL OPPOSITION THEY PROCRASTINATED IN LISTING THE SNAIL WASTING A VALUABLE OPPORTUNITY TO RESOLVE THE UNDERLYING WATER ISSUES EVEN NOW A DECADE AFTER THE PROBLEM BECAME ACUTE AND IN SPITE OF FEDERALSTATE CONSERVATION PLANNING THE IDAHO LEGISLATURE HAS YET TO GIVE THE STATE'S DEPARTMENT OF WATER RESOURCES SUFFICIENT AUTHORITY TO ADDRESS THE WATER ISSUES EFFECTIVELY ULTIMATELY THIS IS WHERE THE SOLUTION MUST LIE THE CLINTON ADMINISTRATION INTENDS TO SHOW THAT THROUGH LONGRANGE PLANNING WE CAN IDENTIFY IN ADVANCE RESOURCE PROBLEMS LIKE GROUNDWATER DEPLETION THAT MAY CAUSE SPECIES TO BECOME IMPERILED OUR GOAL TO TAKE PRESSURE OFF THE ENDANGERED SPECIES ACT SO THAT THERE ARE FEWER CALLS TO THIS 911 BIOLOGICAL EMERGENCY LINE SEE RELATED LETTER LETTERS TO THE EDITOR GOVERNMENT DEFEATS ITS OWN GOOD EFFORTS WSJ DEC 6 1993 SEE RELATED LETTER LETTERS TO THE EDITOR LOSING OUR LAND AT A SNAIL'S PACE WSJ DEC 17 1993 9311230034 9312060092 YY93 MM12 9312200016 931112 THE WORKING POOR MINIMUMWAGE JOBS GIVE MANY AMERICANS ONLY A MISERABLE LIFE IN RURAL VERMONT SOME GO WEEK TO WEEK HOPING NO MAJOR BILLS HIT THEM HUNTING BEAR FOR THE TABLE BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL NEWPORT VT ON PAYDAY BRIAN DEYO'S SOLE PURCHASE IS A 496 BOX OF CHEAP BULLETS KNOWN AS FULL METAL JACKETS MR DEYO WORKS FULL TIME AT A HOCKEYSTICK FACTORY HE TAKES HOME 18840 A WEEK AFTER RENT AND UTILITIES THAT LEAVES ABOUT 20 FOR FOOD AND NO MARGIN AT ALL FOR MISFORTUNE SUCH AS THE ONE MR DEYO NOW FACES VERMONT'S BRUTAL COLD HIT FREAKISHLY EARLY THIS FALL AND HE MUST BUY HEATING OIL THREE PAYCHECKS AHEAD OF PLAN EVERY DAY I'M MAKING CHOICES SAYS MR DEYO WHO HAS A WIFE AND A CHRONICALLY ILL TWOYEAROLD DAUGHTER DO I PAY THE RENT AND RISK HAVING THE POWER CUT OR DO WE TAKE A CHANCE ON BOTH AND BUY FOOD THIS PAYDAY THE CHOICE IS CLEAR HE'S TWO WEEKS LATE ON THE RENT AND THE FUEL TANK MUST BE FILLED UNABLE TO AFFORD FOOD HE WILL HUNT FOR IT STALKING THROUGH THE ICY WOODS BENEATH THE GREEN MOUNTAINS MR DEYO MULLS HIS LIFE AT AGE 28 HE SENSES HE HAS DONE SOMETHING WRONG BUT HE ISN'T SURE WHAT I'M PROUD TO BE A WORKINGMAN THE SON OF TWO FACTORY WORKERS SAYS I ONLY WISH I MADE A LIVING MAKING WORK PAY HAS BECOME A CLINTON ADMINISTRATION CATCH PHRASE BUT ONE THAT APPEARS INCREASINGLY HARD TO FULFILL PUT SIMPLY THE AIM IS TO LIFT WORKING AMERICANS ABOVE THE POVERTY LINE A THRESHOLD THAT MR DEYO AND 94 MILLION OTHERS CURRENTLY DON'T REACH ALMOST 60 OF POOR FAMILIES HAVE AT LEAST ONE MEMBER WORKING SOMEONE WHO PLAYS BY THE RULES AND TRIES TO WORK FULL TIME SHOULD BE ABLE TO SUPPORT A FAMILY SAYS LAWRENCE KATZ CHIEF ECONOMIST AT THE LABOR DEPARTMENT HOWEVER WITH UNIVERSAL HEALTH INSURANCE ONE MEANS TOWARD ACHIEVING THIS GOAL UNDER SIEGE THE ADMINISTRATION HAS RETREATED FROM ANOTHER IN LATE OCTOBER AFTER ARGUING FOR MONTHS THAT A MODEST RISE IN THE MINIMUM WAGE IS NEEDED TO HELP PULL WORKERS OUT OF POVERTY LABOR SECRETARY ROBERT REICH SHELVED HIS CAMPAIGN UNTIL AFTER CONGRESS VOTES ON HEALTHCARE REFORM THIS DELAY WAS WELCOMED BY BUSINESS GROUPS WHICH ARGUE THAT AN INCREASE WOULD COST JOBS BECAUSE EMPLOYERS WOULD AUTOMATE RELOCATE OVERSEAS OR CUT STAFF TO RECOUP HIGHER LABOR COSTS BUT WHAT'S OFTEN OBSCURED BY SUCH POLICY DEBATE IS THE SHEER HARSHNESS OF LIFE IN LOWWAGE AMERICA THE MINIMUM WAGE CURRENTLY 425 AN HOUR WAS MAULED BY INFLATION IN THE 1980S AND NOW PROVIDES AN INCOME SO MEAGER THAT WELFARE RECIPIENTS OFTEN DO BETTER IF THEY TURN DOWN JOBS PAYING IT A FULLTIME MINIMUMWAGE WORKER GROSSES 8840 A YEAR 2300 UNDER THE POVERTY LINE FOR A FAMILY OF THREE IN 1979 THE SAME WORKER EARNED 459 ABOVE THE LINE THE DEPRESSED MINIMUM WAGE ALSO ANCHORS THE BOTTOM END OF A PAY LADDER SO LOW THAT EVEN PEOPLE WHO LIKE MR DEYO CLIMB UP A FEW RUNGS ARE STILL IN POVERTY IN FACT SUCH WORKERS OFTEN ARE WORSE OFF THAN THOSE EARNING 425 AN HOUR BECAUSE THEY ARE MORE LIKELY TO BE ADULTS AND HEADS OF HOUSEHOLDS QUALIFYING FOR LITTLE OR NO GOVERNMENT ASSISTANCE MANY MINIMUMWAGE WORKERS ARE YOUNG PARTTIMERS WITH OTHER INCOME FROM SPOUSES OR PARENTS FAMILIES WHERE THE MAIN BREADWINNER IS MAKING 5 OR 6 AN HOUR THESE ARE THE PEOPLE WHO ARE REALLY HURTING SAYS GARY BURTLESS A LABOR ECONOMIST AT THE BROOKINGS INSTITUTION THIS LARGELY FORGOTTEN GROUP ALSO HELPS ACCOUNT FOR THE 443 JUMP IN THE NUMBER OF WORKING POOR BETWEEN 1979 AND 1992 AMERICA'S WORKING POOR ARE MOSTLY WHITE MOSTLY HIGHSCHOOL EDUCATED AND DISPROPORTIONATELY RURAL A PROFILE THAT IS TYPIFIED BY THE THREECOUNTY CORNER OF VERMONT KNOWN AS THE NORTHEAST KINGDOM THIS BUCOLIC LANDSCAPE OF MOOSE CROSSINGS MAPLESYRUP STANDS AND SCARLET FOLIAGE ALSO HARBORS 10 UNEMPLOYMENT CLOSED MILLS AND RAMSHACKLE HOMES BARBARA STEVENS RUNS A CRISIS CENTER IN NEWPORT A TOWN OF 4700 THAT IS A TWOHOUR DRIVE FROM BURLINGTON THE MORNING AFTER THE FIRST BIG CHILL HER OFFICE WAS CRAMMED WITH DISHEVELED PEOPLE UNPREPARED FOR THE WINTER AND SEEKING HELP MANY WERE ON THEIR WAY TO WORK THEY'D SAY THINGS LIKE I'VE GOT TWO KIDS AND NO OIL IN THE FURNACE SO WE SLEPT IN THE CAR LAST NIGHT WITH THE HEATER ON' MS STEVENS SAYS ONE SUCH VISITOR IS MR DEYO THE HOCKEYSTICK WORKER LATE PAYING HIS BILLS HE HAS HAD HIS ELECTRICITY DISCONNECTED SEVERAL TIMES THIS IS A SPECIAL CALAMITY FOR MR DEYO HIS DAUGHTER HAS ASTHMA AND RELIES ON A VENTILATOR LETTERS FROM MS STEVENS AND LOCAL DOCTORS HAVE HELPED HIM TO GET HIS POWER SWITCHED BACK ON IRONICALLY MR DEYO IS EARNING MORE THAN HE EVER HAS AFTER YEARS OF MINIMUMWAGE JOBS HE GETS 550 AN HOUR STENCILING TRADEMARKS ONTO HOCKEYSTICK BLADES HIS ANNUAL GROSS INCOME IS SO NEAR THE POVERTY LINE THAT NOW HE QUALIFIES FOR VERY LITTLE PUBLIC ASSISTANCE IN PRINCIPLE THIS SUITS HIM FINE HE'S A FORMER NATIONAL GUARDSMAN AND A CONSERVATIVE REPUBLICAN WARY OF GOVERNMENT AND LIBERAL DOGOODERS BUT IN PRACTICE JUST A MINOR SETBACK EVEN A BLOWNOUT TIRE ON HIS 1980 BUICK SETS OFF A CYCLE OF LATE BILLS RUINED CREDIT RATINGS AND SHAKY EMPLOYMENT THOUGH THE COST OF LIVING HERE IS LOW HIS TAKEHOME PAY OF 18840 A WEEK BARELY COVERS HIS FIXED COSTS 60 RENT FOR A CRAMPED APARTMENT ABOUT 40 FOR HEAT 40 FOR POWER HIGH BECAUSE OF HIS DAUGHTER'S VENTILATOR AND HUMIDIFIER 10 FOR GASOLINE AND 15 FOR INSTALLMENT PAYMENTS ON THE FAMILY'S FEW POSSESSIONS THE DEYOS CAN'T AFFORD A PHONE THAT LEAVES ABOUT 20 MOSTLY SPENT AT A DISCOUNT MARKET THAT SELLS DENTED CANS AND CRUSHED BOXES WE DON'T BUY TAPED BOXES BECAUSE THE FOOD COULD HAVE SPILLED ON THE FLOOR AND BEEN SCOOPED BACK IN SAYS ROXANNA DEYO WHO STAYS HOME BECAUSE SHE IS LOATH TO PUT HER FRAIL CHILD IN DAY CARE THE DEYOS ALSO LIVE IN TERROR OF SMALL SHOCKS THAT CAN KNOCK THEM OFF THEIR TIGHTROPE BUDGET THREE YEARS AGO FOR INSTANCE THEIR CAR DEVELOPED TRANSMISSION TROUBLE UNABLE TO AFFORD A 500 REPAIR BILL MR DEYO HAD TO ABANDON THE CAR AND HIS JOB CLEANING KITCHENS AT A SKI RESORT MORE THAN AN HOUR'S DRIVE AWAY SOON AFTERWARD THE DEYOS SEEKING WORK IN HIGHERWAGE MASSACHUSETTS SOLD ALL THEY OWNED TO GO THERE BUT THEY RAN OUT OF MONEY BEFORE FINDING JOBS TWO YEARS LATER THEY ARE STILL MAKING PAYMENTS ON THE USED NOWTATTERED FURNITURE THEY BOUGHT ON THEIR RETURN NORTH MANY NEEDS ARE PUT OFF INDEFINITELY PLAGUED BY PAINFUL ROTTED TEETH MR DEYO WAITED TWO YEARS UNTIL HE WAS LAID OFF AND ELIGIBLE FOR MEDICAID BEFORE HAVING A FEW PULLED WEEK TO WEEK THE DEYOS STILL CLING TO ONE LUXURY TO BREAK THE CONSTANT TENSION MR DEYO SAYS HE BUYS A TAKEAWAY DINNER EVERY SATURDAY USUALLY A PLAIN PIZZA COSTING 599 I FEEL LIKE I'M DOING WHAT I'M SUPPOSED TO DO SAYS MR DEYO WHO DREAMED OF STUDYING FORESTRY WHEN HE GRADUATED FROM HIGH SCHOOL BUT COULDN'T AFFORD THE FEES AND WENT TO WORK AT MCDONALD'S INSTEAD I WORK HARD MY FAMILY'S TOGETHER BUT I'M RUNNING JUST TO STAY WHERE I AM WHICH ISN'T A REAL GREAT PLACE HIS MOST RECENT FRUSTRATION AN ATTEMPT TO FREE HIS FAMILY OF RENT AND OF THEIR GRIM QUARTERS BY PURCHASING A 24000 TRAILER TO PARK ON HIS PARENTS' LAND A LOCAL BANK REFUSED HIS LOAN REQUEST CITING EXCESS OBLIGATIONS AND INSUFFICIENT INCOME ONE UPBEAT NOTE THE DEYOS WHO ANXIOUSLY AWAIT THEIR ANNUAL REBATE FROM THE EARNEDINCOME TAX CREDIT TO CATCH UP ON BILLS AND BUY APPLIANCES SHOULD SEE THE AMOUNT DOUBLE IN EARLY 1995 TO ABOUT 3200 BECAUSE OF A RECENT CHANGE IN THE LAW A GROWING NUMBER OF AMERICANS SHARE THE DEYOS' PLIGHT LAWRENCE MISHEL OF THE WASHINGTONBASED ECONOMIC POLICY INSTITUTE SAYS 28 OF ADULT WORKERS ARE AT WAGE LEVELS TOO LOW TO KEEP A FAMILY OF FOUR OUT OF POVERTY COMPARED WITH 21 IN 1979 HE ALSO NOTES THAT THEIR PRIVATION HAS DEEPENED 143 OF ADULT WORKERS NOW EARN WAGES BELOW 75 OF THE POVERTY LINE TRIPLE THE 1979 PERCENTAGE MR MISHEL AND OTHER ECONOMISTS CITE VARIOUS REASONS SUCH AS THE DECLINE OF MANUFACTURING JOBS AND OF UNIONS IN AN EVERMORE TECHNOLOGICAL ECONOMY IN ADDITION MINIMUMWAGE INCREASES WHICH TEND TO BUMP UP THE WHOLE BOTTOM OF THE PAY SCALE DIDN'T OCCUR BETWEEN 1981 AND 1990 THAT ESPECIALLY HURT YOUNG WORKERS SUCH AS MR DEYO WHO BEGAN WORKING DURING THE 1980S AT THE MINIMUM WAGE AND HAVE EDGED UP VERY SLOWLY EVER SINCE HOWEVER THE DEPRESSED MINIMUM WAGE MAY HAVE KEPT ALIVE SOME JOBS THAT OTHERWISE WOULD HAVE VANISHED ALONG NEWPORT'S RAILROAD TRACKS IN AN OLD FLOUR DEPOT AMERICAN MAPLE PRODUCTS CORP EMPLOYS 40 PEOPLE BOTTLING SYRUP AND MAKING CANDY SANTAS AND OTHER TREATS THE FAMILYOWNED COMPANY IS TYPICAL OF THE LIGHT OFTENMARGINAL BUSINESSES THAT EMPLOY MANY LOWWAGE WORKERS NATIONWIDE MAPLE CANDY THE COMPANY'S PRESIDENT ROGER AMES DRYLY OBSERVES IS NOT YOUR BASIC GROWTH INDUSTRY STARTING MOST WORKERS AT THE MINIMUM WAGE MR AMES EKES OUT PROFITS OF 3 ON SALES FROM WHAT HE ADMITS IS A CREAKING PLANT AT ONE CONVEYOR BELT NINE PEOPLE FILL JUGS WITH SYRUP THEN CAP DATE AND BOX THE JUGS BY HAND A TASK MR AMES SAYS THAT COSTLY NEW MACHINES CAN PERFORM WITH TWO WORKERS NEARBY TWO PEOPLE RUN A 50YEAROLD DEVICE THAT DROPS CANDY INTO MOLDS WHILE OTHER WORKERS USE THEIR FINGERS TO SMOOTH THE FUZZY EDGES LEFT BY THE PLANT'S OLD TOOLS IF YOU'RE PAYING THE MINIMUM WAGE AND IT TAKES 20 MORE TIME TO DO A JOB THAN IT SHOULD IT DOESN'T SEEM THAT CRITICAL MR AMES SAYS HE ADDS THAT A 50CENT INCREASE IN THE MINIMUM WAGE WOULD COST HIM ABOUT 100000 A YEAR AND FORCE HIM TO TAKE A HARD LOOK AT LABORSAVING MACHINERY HE WOULD STOP REPLACING WORKERS WHO LEAVE OR RETIRE AND GO TO A PIECEWORK SYSTEM THAT MIGHT PENALIZE OLDER EMPLOYEES I DON'T HAVE A SWEATSHOP MENTALITY MR AMES SAYS BUT HE SAYS NEITHER HE NOR OTHER EMPLOYERS ARE LIKELY TO RAISE THEIR PAY SIMPLY OUT OF CHARITY PARTICULARLY IN A COMPETITIVE INDUSTRY IF YOU HAD SOMEONE WHO MOWED YOUR LAWN EVERY WEEK FOR 5 WOULD YOU REACH IN AND PAY 10 THE NEXT WEEK HE ASKS MOREOVER HE IS UNDER NO PRESSURE TO RAISE PAY BECAUSE FEW EMPLOYERS DEVIATE FROM THE PREVAILING WAGE THE RESULT AN UNCOMPETITIVE LABOR MARKET THAT TRAPS LOWSKILLED WORKERS EVEN AS THEY CLIMB THE PAY SCALE CONNIE LUCAS WENT TO WORK AT AMERICAN MAPLE 12 YEARS AGO AT THE MINIMUM WAGE AND NOW EARNS 610 AN HOUR WITH A WEEKLY TAKEHOME PAY OF ONLY 15150 AND WORRIED ABOUT THE PLANT'S FUTURE HER HUSBAND ALSO WORKS THERE SHE DECIDED TO SEEK ANOTHER JOB BUT EVERY OPENING OFFERS THE SAME 425 425 425 THE 35YEAROLD MS LUCAS SAYS I CAN'T AFFORD TO WORK ANOTHER 12 YEARS JUST TO GET BACK TO WHERE I AM BONNIE BUSKEY WONDERS WHETHER SHE CAN AFFORD TO WORK AT ALL LAST SPRING BOTH SHE AND HER HUSBAND WERE UNEMPLOYED AND RECEIVED ABOUT 1000 A MONTH IN PUBLIC ASSISTANCE NOW HE WORKS IN CONSTRUCTION AND SHE WORKS FULL TIME AT AMERICAN MAPLE AT THE MINIMUM WAGE TOGETHER THEY BRING HOME ABOUT 1200 A MONTH BUT MS BUSKEY PAYS A BABY SITTER 2 AN HOUR TO LOOK AFTER HER TWO GIRLS FOR PART OF THE DAY SLICING HER REAL WAGE DURING THOSE HOURS TO 225 AND NOW THAT THE BUSKEYS ARE OFF WELFARE THEY NO LONGER QUALIFY FOR MEDICAID UNABLE TO AFFORD HEALTH INSURANCE MS BUSKEY SPENT A WEEK'S PAY ON A RECENT VISIT TO THE DENTIST AND LIVES IN DREAD OF SERIOUS ILLNESS THE MESSAGE FROM THE GOVERNMENT SEEMS TO BE STAY HOME VEGETATE IN FRONT OF THE TV AND YOU'LL BE BETTER OFF' THE 29YEAROLD SAYS ASKED WHY SHE DOESN'T SHE SHRUGS GOOD OLD AMERICAN PRIDE I LIKE TO THINK THAT I EARN WHATEVER I GET IN FACT SOME PEOPLE DO QUIT JOBS BECAUSE THEY CAN DO BETTER ON BENEFITS MS STEVENS THE NEWPORT SOCIAL WORKER SAYS SHE FEELS FORCED TO ADVISE JOBLESS PEOPLE TO TURN DOWN WORK AT OR NEAR THE MINIMUM WAGE I HAVE TO TELL THEM THE JOB'S GOOD FOR YOUR SOUL AND GOOD FOR YOUR MIND BUT NOT FOR YOUR POCKETBOOK' SHE SAYS TRAPPED AT THE BOTTOM BY THE LOW MINIMUM WAGE SUCH WORKERS ALSO MUST COMPETE WITH PEOPLE SLIDING DOWN THE PAY LADDER AT THE HOCKEYSTICK FACTORY MR DEYO'S BROTHERINLAW AND COWORKER GARTH SHANNON HAS NEVER WORKED FOR THE MINIMUM WAGE HIS FIRST JOB AFTER FINISHING HIGH SCHOOL WAS AT A SHOE FACTORY THAT PAID 9 AN HOUR BUT AFTER A WAGE DISPUTE THE PLANT MOVED TO THE DOMINICAN REPUBLIC AND MR SHANNON HAS BOUNCED DOWN THE PAY SCALE EVER SINCE ENDURING PLANT CLOSINGS LAYOFFS AND MENIAL JOBS MOST PEOPLE PLAN FOR WHEN THINGS GET BETTER SAYS THE 35YEAROLD MR SHANNON WHO WEARS THICK GLASSES ON WHICH HE PAYS MONTHLY INSTALLMENTS I TRY TO PLAN FOR WHEN THINGS GET WORSE AS A FOREMAN HE IS AMONG THE FACTORY'S BESTPAID WORKERS EARNING 595 AN HOUR BUT WITH A FAMILY OF FIVE HIS POVERTY IS EVEN WORSE THAN MR DEYO'S HE HEATS HIS JERRYBUILT HOME WITH A WOOD STOVE IN WHICH HE BURNS OLD DOORS AND OTHER SCRAP TIMBER SALVAGED FROM ABANDONED HOUSES HE BURNS KEROSENE LAMPS TO SAVE ON ELECTRICITY LIKE THE DEYOS THE SHANNONS CAN'T AFFORD A TELEPHONE THEY ALSO COULDN'T AFFORD A FOUNDATION WHEN THEY BUILT THE HOUSE SEVEN YEARS AGO STONES AND WOOD PROPS KEEP IT FROM SLIDING DOWNHILL A CONSERVATIVE MAN WITH A FIERCE WORK ETHIC MR SHANNON HAS URGED HIS WIFE TO WORK PART TIME RATHER THAN STAY HOME WITH THEIR YOUNGEST DAUGHTERS AGE FIVE AND EIGHT AS A NURSINGHOME HOUSEKEEPER SHE EARNS 461 AN HOUR AND BRINGS HOME 20 A WEEK AFTER BABYSITTING BILLS WORK IS WHAT MADE THIS COUNTRY GREAT SAYS MR SHANNON WHO HAS DRAPED AN AMERICAN FLAG ACROSS THE FRONT OF HIS HOUSE BUT AS HE COOKS HOMEMADE PIZZA FOR HIS GIRLS HE CONFESSES TO OCCASIONAL DESPAIR AT HOW LITTLE HIS LABOR PROVIDES FOR HIS FAMILY THE WORST MOMENT CAME WHEN HIS FIVEYEAROLD'S KINDERGARTEN CLASS TOOK A DAY TRIP TO A ZOO IN NEARBY CANADA THE SHANNONS COULDN'T AFFORD THE 12 BUS FARE AND WERE TOO PROUD TO BORROW WE KEPT HER HOME THAT DAY SO SHE WOULDN'T FEEL BAD ABOUT MISSING THE TRIP HE SAYS DAVID PRICE MR SHANNON'S AND MR DEYO'S BOSS IS SYMPATHETIC HE HELPED PAY FOR MR SHANNON'S GLASSES AND RECENTLY GAVE HIM HIS OWN CHILDREN'S OUTGROWN CLOTHING BUT LIKE MR AMES AT AMERICAN MAPLE MR PRICE DOESN'T NEED TO RAISE PAY TO KEEP HIS 13 WORKERS HE HAS 500 JOB APPLICATIONS ON FILE SO MR PRICE DOES SMALL THINGS SUCH AS TREATING WORKERS TO A BIRTHDAY LUNCH IN OCTOBER IT WAS MR DEYO'S TURN DEVOURING A PRIMERIB SANDWICH HE CONFIDES THAT IT IS HIS FIRST MEAL OUT IN SIX MONTHS MR PRICE ALSO GIVES WORKERS A TURKEY AT CHRISTMAS AND A HAM AT EASTER MR DEYO STILL HAS A BIT OF HAM LEFT IN HIS FREEZER FOR EMERGENCIES HE SAYS BUT THERE IS LITTLE ELSE IN THE LARDER SO ON PAYDAY AFTER BANKING HIS CHECK TO COVER THE RENT MR DEYO BUYS BULLETS AND DRIVES TO HIS BROTHERINLAW'S HOME THE TWO MEN HIKE OFF IN SEARCH OF AN ANIMAL MR SHANNON RECENTLY SPOTTED IN A CORNFIELD I'VE NEVER EATEN BEAR MR DEYO SAYS EXCITEDLY TOTING A USED MILITARY RIFLE HE BOUGHT FOR 80 BUT THEY LOOK LIKE THEY HAVE A LOT OF MEAT ON THEM THE TWO MEN SOON FIND TRACKS BUT NO BEAR AT DUSK AFTER TWO HOURS OF TRAMPING THROUGH DENSE WOODS MR DEYO SPOTS A CROW EDIBLE IF YOU COOK IT JUST RIGHT HE SAYS BUT HE CAN'T GET CLOSE ENOUGH FOR A SHOT FRUSTRATED HE AIMS AT A CHIPMUNK MR SHANNON TALKS HIM OUT OF IT THERE WOULDN'T BE ENOUGH MEAT THERE FOR A SANDWICH HE SAYS EXHAUSTED AND COLD THE TWO HEAD BACK MR DEYO TOSSES HIS GUN IN THE TRUNK MR SHANNON TOUCHES HIS BROTHERINLAW ON THE ARM IT COULD HAVE BEEN WORSE HE SAYS AT LEAST WE DIDN'T WASTE ANY BULLETS SEE RELATED LETTERS LETTERS TO THE EDITOR THE COURAGE TO SHUN WELFARE WSJ DEC 16 1993 9311120054 YY93 MM12 9312170197 931217 REVIEW & OUTLOOK EDITORIAL WHY WE HATE IT'S A WONDERFUL LIFE' WE KNOW ONE GIFT A LOT OF PEOPLE MIGHT RELISH THIS HOLIDAY SEASON IT HAS TO DO WITH A MOVIE THAT ALWAYS SEEMS TO BE ON SOME CHANNEL SOMEWHERE AT EVERY HOUR OF THE DAY OR NIGHT AND THAT WE THINK SHOULD GO AWAY FOR A WHILE MAYBE AFTERWARD WHEN IT RETURNS IT WILL SEEM LESS TIRESOME THAN IT HAS NOW BECOME FOR A LOT OF PEOPLE THE MOVIE AS IT MAY ALREADY BE CLEAR IS IT'S A WONDERFUL LIFE FRANK CAPRA'S 1946 HIT ABOUT A GUARDIAN ANGEL'S RESCUE OF A SUICIDAL MAN HAS HAD QUITE A RUN AS A HOLIDAY AIRTIME FILLER FOR YEARS NOW AND WHILE WE ARE SECOND TO NONE IN OUR DEVOTION TO MR CAPRA JIMMY STEWART DONNA REED AND THE REST WE THINK IT'S TIME SOMEONE TOLD THE TRUTH ABOUT THIS MOVIE WHICH IS NAMELY THAT AS A CHRISTMAS TVMOVIE TRADITION WE COULD DO A LOT BETTER THAN THIS HEARTWARMER SATURATED WITH BATHOS AND BLEAKNESS WE HASTEN TO SAY WE HAVE NOTHING AGAINST BATHOS AND BLEAKNESS OR GHOSTLY PRESENCES ARRIVING TO DELIVER SPIRITUAL AND MORAL INSTRUCTION THEY ARE AFTER ALL THE STUFF OF WHICH CHARLES DICKENS MADE A CHRISTMAS CAROL AND IT'S HARD TO IMAGINE TIRING OF THAT OR THE MOVIE VERSIONS ESPECIALLY THE 1951 FILM STARRING ALASTAIR SIM WE DON'T MEAN TO PICK ON IT'S A WONDERFUL LIFE UNFAIRLY WE'D LIKE TO DO IT FAIRLY WE COULD CONSIDER FOR INSTANCE THAT THERE MAY NOT BE ALL THAT MANY FILMS THAT STAND UP WELL UNDER INCESSANT SHOWINGS ON THE OTHER HAND WE CAN THINK OF SOME THAT DO CASABLANCA FOR INSTANCE IS ON ALL YEAR ROUND AND ALWAYS WELCOME IT MAY NOT BE HOLIDAY FARE IN THE TRADITIONAL SENSE BUT IT'S A GOOD GUESS MORE PEOPLE WOULD AT ANY TIME RATHER BE SITTING IN THEIR LIVING ROOMS LOOKING AT HUMPHREY BOGART AND INGRID BERGMAN AND PAUL HENREID THAN AT HOLLYWOOD'S DEADLY CUTE REPRESENTATION OF AN ANGEL COME TO EARTH IT'S EASY TO GET TIRED OF THAT ANGEL BUT WHO CAN TIRE OF HEARING HUMPHREY BOGART REPLY WHEN THE SUSPICIOUS GERMANS ASK WHAT IS YOUR NATIONALITY ANSWER I'M A DRUNKARD THERE ARE A LOT OF OTHER MOVIES WORTH BEING SHOWN ROUND THE CLOCK EVEN IF THEY DON'T HAVE ANYTHING SPECIFICALLY TO DO WITH THE SEASON LET'S TRY ALL ABOUT EVE FOR A FEW YEARS THAT 1950 CLASSIC WITH BETTE DAVIS AND THE IMMORTALLY VIPEROUS GEORGE SANDERS DOES IN ITS WAY HAVE CERTAIN INSPIRATIONAL ASPECTS LOOKING AT THIS FILM WRITTEN BY JOSEPH L MANKIEWICZ WE CAN MARVEL AT THE FACT THAT SCRIPTS OF THIS WIT AND LITERACY WERE ONCE ACTUALLY MADE INTO HOLLYWOOD FILMS AND WE CAN NURTURE THE HOPE THAT SUCH MIRACLES MIGHT COME TO PASS AGAIN NONE OF THIS IS TO SUGGEST A DAMPER ON CHRISTMAS MOVIES IT'S ONLY TO SAY WE'RE FOR GIVING OLD GEORGE BAILEY AND HIS GUARDIAN ANGEL A REST FOR 20 YEARS OR SO SEE RELATED LETTERS LETTERS TO THE EDITOR IS IT A WONDERFUL LIFE' FOR POOR OLD POTTER WSJ DEC 23 1993 9312170196 931217 WHO'S NEWS DUPLEX PRODUCTS INC DUPLEX PRODUCTS INC SYCAMORE ILL BENJAMIN L MCSWINEY 43YEAROLD PRESIDENT WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER OF THIS PROVIDER OF BUSINESS COMMUNICATION PRODUCTS AND SERVICES HE SUCCEEDS DAVID J ESKRA 52 WHO CONTINUES AS CHAIRMAN 9312170195 931217 DIVIDEND NEWS UST INC UST INC GREENWICH CONN INCREASED ITS QUARTERLY DIVIDEND 17 TO 28 CENTS A SHARE FROM 24 CENTS PAYABLE MARCH 15 TO SHARES OF RECORD MARCH 4 THE MAKER OF SMOKELESS TOBACCO HAS INCREASED ITS DIVIDEND FOR 23 CONSECUTIVE YEARS 9312170194 931217 AMERICA WEST FARE REDUCTIONS PHOENIX AMERICA WEST AIRLINES SAID IT WILL REDUCE LEISURE FARES AS MUCH AS 30 FOR TRAVEL THROUGH MARCH 31 RESTRICTIONS APPLY TO THE NONREFUNDABLE TICKETS WHICH MUST BE PURCHASED BY JAN 31 9312170193 931217 OMNICARE INC ACQUISITION CINCINNATI OMNICARE INC SAID IT ACQUIRED THE INSTITUTIONAL PHARMACY BUSINESS OF CLOSELY HELD ANDERSON MEDICAL SERVICES INC OF DOVER OHIO FOR CASH THE AMOUNT WASN'T DISCLOSED THE ACQUISITION WILL INCREASE THE NUMBER OF NURSING HOME RESIDENTS OMNICARE SERVES BY 8 TO NEARLY 101000 9312170192 931217 ROCHE HOLDING STILL ON ANALYSTS' BUY' LIST FOR '94 SOME SAY CONCERN'S STOCK WHICH SOARED THIS YEAR IS LIKELY TO GO HIGHER BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH FINANCIAL ANALYSTS' LOVE AFFAIR WITH ROCHE HOLDING AG ISN'T OVER THEY'RE STILL RECOMMENDING THE BIG SWISS DRUG AND CHEMICAL CONCERN FOR 1994 DESPITE THIS YEAR'S SURGE IN ITS STOCK PRICE SINCE THE START OF 1993 ROCHE BEARER SHARES HAVE SOARED BY ABOUT 90 CLOSING AT 11050 SWISS FRANCS 7523 YESTERDAY NONVOTING EQUITY SECURITIES WHICH ARE MOST FAVORED BY INTERNATIONAL INVESTORS ARE UP ABOUT 50 TO 6250 FRANCS FRITZ GERBER ROCHE'S CHAIRMAN AND CHIEF EXECUTIVE ADDED TO POSITIVE SENTIMENT THIS WEEK WITH A BULLISH STATEMENT TO EMPLOYEES IN THE COMPANY'S INTERNAL NEWSPAPER IN HIS ENDOFTHEYEAR ADDRESS MR GERBER SAID 1993 EARNINGS WILL BE CONSIDERABLY HIGHER ALL DIVISIONS CONTRIBUTED TO THIS SUCCESS HE ADDED INDEED A NUMBER OF ANALYSTS ARE FORECASTING A 26 JUMP IN NET INCOME THIS YEAR AFTER A 29 INCREASE TO 19 BILLION SWISS FRANCS IN 1992 BANK JULIUS BAER DRUGINDUSTRY ANALYST MIRKO SANGIORGIO RECOMMENDS BUYING ROCHE ON THE STRENGTH OF ITS EARNINGS GROWTH AND SUGGESTS THE STOCK'S PRICE STILL HAS UPSIDE POTENTIAL ANALYSTS SAY ROCHE EARNINGS ARE SET TO GROW BY ABOUT 20 ANNUALLY OVER THE NEXT FEW YEARS THIS PREDICTION THEY SAY HAS THE INDIRECT BLESSING OF ROCHE FINANCE DIRECTOR HENRI B MEIER MEIER ISN'T ABOUT TO CONFIRM FORECASTS SAID AN ANALYST WHO ATTENDED A RECENT ROCHE PRESENTATION BUT HE GAVE THE NOD THAT WE ARE ABOUT RIGHT AMONG THE FACTORS THAT BACK UP THOSE PROJECTIONS ANALYSTS SAY ARE A RICH PHARMACEUTICAL PIPELINE BREAKTHROUGH DIAGNOSTIC TECHNOLOGY ON THE VERGE OF SHOWING PROFITS AND THE COMPANY'S POSITION AS THE WORLD'S NO 1 PRODUCER OF VITAMINS WHICH ARE INCREASINGLY RECOGNIZED AS A TOOL IN FIGHTING DISEASE ROCHE IS THE BASELBASED PARENT OF F HOFFMANNLA ROCHE LTD WHICH IN TURN IS THE PARENT OF HOFFMANNLA ROCHE INC OF THE US THE GROUP PRODUCES DRUGS FOR CONDITIONS OF THE CENTRAL NERVOUS SYSTEM INFECTIOUS DISEASE INFLAMMATORY AND METABOLIC DISEASE THROMBOSIS AND CARDIOVASCULAR CONDITIONS AND THE FIELDS OF ONCOLOGY VIROLOGY AND DERMATOLOGY ITS LEADING DRUG ROCEPHIN IS THE BIGGESTSELLING INJECTIBLE ANTIBIOTIC IN THE WORLD WITH ESTIMATED ANNUAL SALES OF 12 BILLION FRANCS WHAT REALLY GETS ANALYSTS EXCITED HOWEVER IS THE PROMISE OF NEW BIOTECHNOLOGY DRUGS FROM GENENTECH INC THE US GENETICENGINEERING LEADER IN WHICH ROCHE HAS A MAJORITY STAKE GENENTECH WILL BE A VERY POSITIVE INFLUENCE ON PROFITS IN THE FUTURE SUGGESTS MR SANGIORGIO ANALYSTS ALSO SAY THAT FROM NEXT YEAR ROCHE'S POLYMERASE CHAINREACTION DIAGNOSTIC TESTING TECHNOLOGY WHICH DETECTS DISEASE EARLIER THAN OLDER METHODS WILL START CONTRIBUTING TO EARNINGS ROCHE CAN PROVIDE CUSTOMERS WITH A COMPREHENSIVE HEALTHCARE PACKAGE A LOT OF GOOD DRUGS DIAGNOSTICS AND VITAMINS SAYS JEANMAX VILLARS ANALYST AT GENEVABASED LOMBARD ODIER & CIE MR VILLARS SAID LOMBARD ODIER HAS ALWAYS BEEN KEEN ON ROCHE BUT PUT THE STOCK ON HOLD FOR A TIME AFTER THIS YEAR'S PRICE SURGE BUT TWO WEEKS AGO WE DECIDED TO BUY THE STOCK AGAIN INVESTORS CAN'T IGNORE ROCHE NEVERTHELESS ANALYSTS EXPECT THE PACE OF ROCHE'S STOCKPRICE RISE TO SLOW ROCHE WILL BE A GOOD PERFORMER IN 1994 BUT PERFORMANCE WON'T MATCH 1993 SAYS WOLFGANG KIRCHMAYR A SWISS BANK CORP ANALYST HOWEVER HE ADDS ROCHE IS A BUY' IF YOU WANT TO BE IN THE SWISS MARKET YOU HAVE TO BE IN ROCHE IAN BROADHURST ANALYST AT LONDONBASED BNP SECURITIES IS CAUTIOUS BECAUSE OF ROCHE'S SURGE THIS YEAR HE SAYS ROCHE'S SHARE PRICE WILL CONTINUE TO RISE BUT AT A SLOWER RATE THE STOCK TODAY IS FOR LONGTERM INVESTORS INTERESTED IN A COMPANY WITH STRONG EARNINGS GROWTH MR BROADHURST SUGGESTS LONDONBASED ENSKILDA RESEARCH ANALYST MICHAEL CLARK IS MORE SKEPTICAL I'M NEUTRAL TO POSITIVE SAYS MR CLARK THE STOCK HAS REACHED A LEVEL WHERE ONE SHOULD BE MORE CAUTIOUS MR CLARK SUGGESTS THAT OTHER DRUG COMPANIES CAN BE BOUGHT TODAY MORE CHEAPLY IN THE SWISS MARKET HE PREFERS SANDOZ AG WHICH HAS A LOT OF CATCHING UP TO DO NEVERTHELESS HE ADDS THERE'S NO NEGATIVE RISK WITH ROCHE 9312170191 931217 PEPPERAND SALT WAS IT MEANT AS A WARNING OR PRAISE ABOUT EXERCISE DEVICES JUST OWNING THEM SUFFICES 9312170190 931217 AIR CANADA RAISES BID FOR OVERSEAS BUSINESS OF CANADIAN AIRLINES TORONTO AIR CANADA SAID IT MADE A SWEETENED OFFER FOR THE INTERNATIONAL OPERATIONS OF CANADIAN AIRLINES INTERNATIONAL BUT CONCEDED THAT CANADIAN AIR'S PARENT PROBABLY WON'T JUMP AT THE PROPOSAL THE NEW OFFER TO PWA CORP CALGARY ALBERTA CONSISTS OF 250 MILLION CANADIAN DOLLARS 1875 MILLION IN CASH THE ASSUMPTION OF 800 MILLION IN DEBT AND LEASE OBLIGATIONS AND C118 MILLION IN CASH OR DEBT FOR SPARE PARTS AND INVENTORY PWA TURNED DOWN A PREVIOUS OFFER THAT INVOLVED C50 MILLION LESS IN CASH AND AN UNSPECIFIED AMOUNT FOR SPARE PARTS AND INVENTORY PWA SAID IN A STATEMENT THAT ITS BOARD WILL GIVE THE OFFER THE ATTENTION IT MERITS IT DIDN'T ELABORATE BUT NOTED THAT IT IS IN THE FINAL STAGES OF CLOSING AN AGREEMENT WITH AMR CORP WHICH AIR CANADA HOPES TO DERAIL HOLLIS HARRIS AIR CANADA'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID HE UNDERSTOOD THAT PWA WAS PROHIBITED FROM ENTERTAINING HIS COMPANY'S OFFERS BECAUSE OF THE AGREEMENT WITH AMR FORTH WORTH TEXAS AMR HAS CONDITIONALLY AGREED TO BUY ONETHIRD OF CANADIAN AIRLINES FOR C246 MILLION IF THE CARRIER WITHDRAWS FROM THE GEMINI COMPUTER RESERVATION SYSTEM AND TIES UP WITH AMR'S SABRE NETWORK GEMINI IS JOINTLY OWNED BY PWA AIR CANADA AND AN AFFILIATE OF UAL CORP MR HARRIS DESCRIBED AIR CANADA'S NEW PLAN AS A BACKSTOP FOR PWA IF THE AMR TRANSACTION FALLS THROUGH AIR CANADA BASED IN MONTREAL HOPES TO MAKE IT FALL THROUGH BY APPEALING TO THE FEDERAL COURT OF CANADA TO REVERSE A RECENT ANTITRUST RULING THAT PERMITS CANADIAN AIRLINES TO DROP OUT OF THE GEMINI SYSTEM IT SAID THE APPEAL WILL BE FILED BY DEC 24 AMR EARLIER THIS WEEK EXTENDED TO JUNE 30 FROM DEC 31 THE DEADLINE FOR COMPLETING ITS PROPOSED ARRANGEMENT WITH PWA 9312170189 931217 WHO'S NEWS UAL UNIONS WANT GERALD GREENWALD TO BECOME CHIEF IF BUYOUT SUCCEEDS BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL GERALD GREENWALD MIGHT FINALLY GET THE JOB HE'S ALWAYS WANTED CHIEF EXECUTIVE OFFICER OF A MAJOR US CORPORATION MR GREENWALD IS THE UNIONS' CHOICE TO LEAD CHICAGOBASED UAL CORP IF THEIR PROPOSED MAJORITY BUYOUT GOES THROUGH THE 58YEAROLD EXECUTIVE HAS BEEN SOMETHING OF A JOBHOPPER SINCE 1990 THAT'S WHEN HE RESIGNED AS LEE IACOCCA'S HEIR APPARENT AT CHRYSLER CORP TO LEAD THE UNITED AIRLINES UNIONS' PREVIOUS AND ULTIMATELY UNSUCCESSFUL ATTEMPT TO BUY OUT THE CARRIER PEOPLE CLOSE TO THE UNITED TALKS SAY NO AGREEMENT HAS BEEN SIGNED WITH MR GREENWALD BUT HE IS AS ONE PUT IT READY WILLING AND ABLE TO TAKE OVER SUCCEEDING UAL CHAIRMAN STEPHEN WOLF IF THE TRANSACTION GOES THROUGH MR GREENWALD HAS ALREADY ACTED AS AN INFORMAL CONSULTANT GIVING HIS ADVICE ON ISSUES RAISED IN THE COMPLEX TALKS MR GREENWALD WOULD BE STEPPING INTO A COMPLEX JOB THAT IS MADE EVEN MORE DIFFICULT BY A PROPOSED DUAL OWNERSHIP OF THE AIRLINE BY ITS WORKERS AND PUBLIC SHAREHOLDERS AS THEY DID LAST TIME SKEPTICS ARE LIKELY TO RAISE QUESTIONS ABOUT HIS LACK OF EXPERIENCE IN THE AIRLINE INDUSTRY HE'S REALLY AN ABLE FINANCIAL GUY SAID DAVID HEALY AUTO INDUSTRY ANALYST AT SG WARBURG & CO BUT I THINK HE'S UNTRIED AS A CEO MR GREENWALD WHO WALKED AWAY WITH 9 MILLION IN COMPENSATION AFTER THE LAST UNITED DEAL FELL THROUGH ISN'T TALKING ABOUT THE NEW TRANSACTION OR HIS ROLE IN IT I AM NOT WILLING TO HAVE ANY DISCUSSION ABOUT THIS SUBJECT WITH YOU HE SAID FROM HIS VACATION HOME IN ASPEN COLO HE WOULD BE LEAVING BEHIND SEVERAL PASSIONS HE CURRENTLY SERVES AS CHAIRMAN OF A CZECH TRUCK MAKER AS AN EXPLORER OF BUYOUT DEALS WITH INVESTMENT BANKER BRIAN FREEMAN AND AS THE DEEP POCKETS FOR SOME 50 ST LOUISAREA HIGH SCHOOL STUDENTS TO WHOM HE HAS PROMISED A COLLEGE EDUCATION HE WOULD ALSO HAVE LESS TIME TO SIP MARGARITAS IN THE MEXICAN RESTAURANT OWNED BY ONE OF HIS SONS IN APSEN OR TO SNOWSHOE OR SKI IN THE ROCKIES THE TOP JOB AT UNITED WOULD CAP A CAREER THAT STARTED IN 1957 WHEN FORD MOTOR CO HIRED MR GREENWALD AFTER HIS GRADUATION FROM PRINCETON UNIVERSITY SEVERAL PEOPLE WHO KNOW HIM SAID THE ST LOUIS NATIVE WOULD HAVE NO TROUBLE STEPPING BACK INTO THE EXECUTIVE SUITE WHICH AFTER ALL HE SHARED AT CHRYSLER AS ITS VICE CHAIRMAN FROM 1988 TO 1990 THEY ALSO SAID HE WOULD BE ABLE TO WORK WITH CONSTITUENTS BOTH INSIDE AND OUTSIDE THE COMPANY AS HE DID IN HELPING TO SAVE CHRYSLER FROM THE ABYSS IN THE EARLY 1980S JERRY WOULD BE AN OUTSTANDING CEO SAID STEVEN ROTHMEIER A FORMER CHAIRMAN OF NORTHWEST AIRLINES WHO NOW SERVES ON THE BOARD OF HONEYWELL INC WITH MR GREENWALD HE HAS ARTICULATED THE TYPE OF RELATIONSHIP BETWEEN EMPLOYEES MANAGEMENT AND SHAREHOLDERS PROBABLY BETTER THAN ANYONE I'VE EVER TALKED TO UNITED'S PILOTS AND MACHINISTS UNIONS SEE MR GREENWALD AS AN EXECUTIVE WHO WOULD LISTEN TO THEIR CONCERNS BUT STILL MEET OUTSIDE SHAREHOLDERS DEMANDS FOR A LEADER WHO WANTS TO RUN A PROFITABLE BUSINESS EUGENE KEILIN AN INVESTMENT BANKER WHO HAS ADVISED THE AIR LINES PILOTS ASSOCIATION IN ITS VARIOUS BUYOUT ATTEMPTS SAID THE UNIONS WERE IMPRESSED WITH MR GREENWALD THE FIRST TIME AROUND HE ALWAYS LISTENED AND CONSULTED BUT THEN MADE DECISIONS QUICKLY AND EFFECTIVELY SAID MR KEILIN HIRED BY THE UNIONS IN MAY 1990 MR GREENWALD WAS OUT OF A JOB BEFORE THE YEAR WAS OUT AS UAL'S BOARD REJECTED THE TRANSACTION AMID RISING OIL PRICES AND IRAQ'S INVASION OF KUWAIT BUT MR GREENWALD WALKED AWAY WITH 5 MILLION FROM A SIGNING BONUS AND ANOTHER 4 MILLION AFTER THE DEAL COLLAPSED HE MIGHT HAVE MADE EVEN MORE MONEY FROM STOCK OPTIONS AT CHRYSLER AS THAT COMPANY'S HAS STOCK SOARED SINCE HE LEFT IN APRIL 1991 MR GREENWALD SIGNED ON AS A MANAGING DIRECTOR OF DILLON READ & CO TO RUN ITS CORPORATE BUYOUT ACTIVITIES A YEAR LATER HE WAS NAMED PRESIDENT OF OLYMPIA & YORK DEVELOPMENTS LTD AS THE TROUBLED CANADIAN REAL ESTATE CONCERN UNSUCCESSFULLY SOUGHT TO AVERT A BANKRUPTCYLAW FILING THE NEXT JOB MADE HIM A CHAIRMAN OF TATRA A TROUBLED TRUCK MAKER IN THE CZECH REPUBLIC MR GREENWALD AND TWO US PARTNERS TAKE TURNS TRAVELING TO THE CZECH REPUBLIC TO OVERSEE TATRA'S ATTEMPTED REVIVAL AN ARRANGEMENT THAT SOME HAVE CRITICIZED FOR ITS TAGTEAM APPROACH TATRA'S PLANT HALTED PRODUCTION IN APRIL BUT RESUMED IN AUGUST PUMPING OUT 450 TRUCKS A MONTH DAVID SHELBY ONE OF MR GREENWALD'S CHICAGO PARTNERS SAID THE PLANT IS NOW TEMPORARILY SHUT BECAUSE OF THE HOLIDAYS AND A SLUMP IN ORDERS IF THE ORDER BOARD WAS BETTER I'D SAY WE'RE OVER THE HUMP MR SHELBY SAID IF HE GETS THE UNITED JOB MR GREENWALD IS EXPECTED TO WITHDRAW FROM TATRA AND FROM GREENWALD & FREEMAN A NEW INVESTMENT FIRM THAT SEEKS BUYOUTS BUT HAS YET TO WIN ONE 9312170188 931217 COMAIR HOLDINGS' NEW SERVICE CINCINNATI COMAIR HOLDINGS INC WILL BEGIN SERVICE BETWEEN THIS DELTA AIR LINES HUB AND MIDLAND/BAY CITY/SAGINAW MICH EFFECTIVE MARCH 1 WITH THREE ROUNDTRIP NONSTOP FLIGHTS A DAY COMAIR IS A HOLDING COMPANY FOR COMAIR A REGIONAL AIRLINE THAT PROVIDES CONNECTING SERVICE FOR DELTA 9312170187 931217 ROCHESTER COMMUNITY SAVINGS ROCHESTER NY ROCHESTER COMMUNITY SAVINGS BANK SAID SALES OF NONPERFORMING ASSETS DURING THE 1993 FOURTH QUARTER ENDED NOV 30 HAVE REDUCED THE AMOUNT OF SUCH ASSETS TO 100 MILLION FROM 2806 MILLION A SPOKESMAN SAID THE BANK WILL SELL A FEW MORE NONPERFORMING ASSETS DURING THE FIRST QUARTER ENDED FEB 28 THAT WILL REDUCE NONPERFORMING ASSETS TO SOMEWHERE IN THE 90 MILLION RANGE HE SAID 9312170186 931217 INTERNATIONAL HONG KONG JOBLESS RATE RISES HONG KONG HONG KONG'S PROVISIONAL UNEMPLOYMENT RATE ROSE TO 21 DURING THE PERIOD FROM SEPTEMBER TO NOVEMBER ACCORDING TO THE GOVERNMENT'S CENSUS AND STATISTICS DEPARTMENT THE GOVERNMENT SAID THE LATEST FIGURES SUGGEST THAT THE LABOR MARKET HAS REMAINED TIGHT IN RECENT MONTHS 9312170185 931217 WHO'S NEWS LITTON INDUSTRIES INC LITTON INDUSTRIES INC BEVERLY HILLS CALIF THOMAS W PARKER WAS APPOINTED PRESIDENT OF THE SOLID STATE DIVISION BASED IN SANTA CLARA CALIF MR PARKER 48 YEARS OLD SUCCEEDS FRANK A OLSON 60 WHO MOVES TO THE COMPANY'S ELECTRON DEVICES DIVISION IN SAN CARLOS CALIF AND BECOMES A MEMBER OF A NEWPRODUCT DEVELOPMENT TEAM MR PARKER PREVIOUSLY WAS PRESIDENT AND GENERAL MANAGER OF FILCOM INC LITTON IS A TECHNOLOGYBASED COMPANY THAT PROVIDES RESOURCE EXPLORATION SERVICES INDUSTRIAL AUTOMATION SYSTEMS AND ELECTRONIC AND DEFENSE SYSTEMS 9312170184 931217 TECHNOLOGY FRENCH REPORT ADVANCE IN WARM SUPERCONDUCTING PARIS FRENCH RESEARCHERS SAID THEY PRODUCED A SUPERCONDUCTING MATERIAL THAT WORKS AT THE WARMEST TEMPERATURE YET ACHIEVED INCREASING THE PROSPECTS OF SOMEDAY TRANSMITTING LARGE ELECTRICAL LOADS WITHOUT LOSS DUE TO RESISTANCE SCIENTISTS AT ECOLE SUPERIEURE DE PHYSIQUE ET DE CHIMIE INDUSTRIELLES OR CNRS SAID THEIR MATERIAL CARRIED ELECTRICITY WITHOUT RESISTANCE AT ABOUT 250 KELVINS OR ABOUT MINUS 10 DEGREES FAHRENHEIT THAT IS ABOUT 170 DEGREES FAHRENHEIT WARMER THAN IN REPORTS OF WARM TEMPERATURE SUPERCONDUCTING CARRIED OUT BY SCIENTISTS AT THE UNIVERSITY OF HOUSTON IN SEPTEMBER IN 1986 SCIENTISTS MADE A MAJOR BREAKTHROUGH BY PRODUCING MATERIALS THAT AT RELATIVELY WARM TEMPERATURES ELIMINATED THE RESISTANCE THAT LIMITS NORMAL ELECTRICAL TRANSMISSIONS UNTIL THEN ALL SUPERCONDUCTING WAS CARRIED OUT BY COOLING ELECTRICAL WIRES WITH HELIUM THE NEED FOR HELIUM REMAINS A MAJOR OBSTACLE TO USING SUPERCONDUCTORS TO SHARPLY INCREASE THE CAPACITY OF ELECTRICAL WIRES AND FOR SUCH APPLICATIONS AS HIGHSPEED TRAINS ELECTRIC CARS AND SUPERFAST COMPUTERS THE CNRS SCIENTISTS LED BY MICHEL LAGUES SAID THEIR MATERIAL ALTERNATES LAYERS OF COPPER AND OXYGEN ATOMS SANDWICHED BETWEEN LAYERS OF BISMUTH STRONTIUM CALCIUM AND OXYGEN ATOMS THEIR RESULTS ARE STILL WELL SHORT OF THE ROOMTEMPERATURE GOAL SOUGHT FOR WIDESPREAD COMMERCIAL APPLICATIONS 9312170183 931217 WHO'S NEWS LANDMARK GRAPHICS CORP LANDMARK GRAPHICS CORP HOUSTON THEODORE LEVITT WAS NAMED TO THE BOARD OF THE GEOSCIENCE INFORMATIONSYSTEMS COMPANY BRINGING THE NUMBER OF DIRECTORS TO SIX MR LEVITT 68 YEARS OLD IS AN AUTHOR MARKETING EXPERT AND FORMER HARVARD BUSINESS SCHOOL PROFESSOR 9312170181 931217 DIVIDEND NEWS PEOPLES FIRST CORP PEOPLES FIRST CORP PADUCAH KY DECLARED A 100 STOCK DIVIDEND PAYABLE JAN 4 TO STOCK OF RECORD THAT DATE THE BANK HOLDING COMPANY SAID IT TOOK THE ACTION TO PRODUCE A GREATER NUMBER OF SHARES OUTSTANDING IN A BID TO INCREASE SHAREHOLDER VALUE AND PROVIDE A MORE DESIRABLE STOCK PRICE 9312170180 931217 TEXAS BIOTECHNOLOGY'S OFFERING HOUSTON TEXAS BIOTECHNOLOGY CORP SAID IT COMPLETED AN INITIAL PUBLIC OFFERING OF 3550000 UNITS AT 675 A UNIT EACH UNIT REPRESENTS ONE SHARE OF COMMON STOCK AND ONE REDEEMABLE COMMONSTOCK PURCHASE WARRANT THE BIOPHARMACEUTICAL COMPANY SAID THE PROCEEDS WILL BE USED FOR PRODUCTTESTING CONTINUED RESEARCH AND DEVELOPMENT CAPITAL EXPENDITURES AND GENERAL CORPORATE PURPOSES D BLECH & CO MANAGED THE OFFERING 9312170179 931217 ONTARIO PANEL BARS 2 WITH TIES TO LAWSON FROM COMPANY POSTS TORONTO THE ONTARIO SECURITIES COMMISSION HAS BANNED TWO ITALIAN BUSINESSMEN FROM SERVING AS DIRECTORS OR OFFICERS OF ANY ONTARIOBASED OR ONTARIOLISTED COMPANIES AS A RESULT OF THEIR INVOLVEMENT IN MANIPULATING THE PRICE OF THE STOCK OF PACKAGING CONCERN LAWSON MARDON GROUP LTD SERGIO CRAGNOTTI AND ROBERTO MARZIALE AGREED TO THE LIFETIME BAN AS WELL AS OTHER CONDITIONS AS PART OF A SETTLEMENT REACHED WITH COMMISSION STAFF MR CRAGNOTTI A DIRECTOR OF LAWSON MARDON IS ALSO CHAIRMAN AND CONTROLLING SHAREHOLDER OF LAWSON MARDON'S MAJOR SHAREHOLDER CRAGNOTTI & PARTNERS CAPITAL INVESTMENT SA OF LUXEMBOURG THAT INSTITUTION HOLDS A 32 EQUITY INTEREST AND 52 VOTING STAKE IN LAWSON MARDON WHICH IS BASED IN MISSISSAUGA ONTARIO IN THE SETTLEMENT AGREEMENT MR CRAGNOTTI AND MR MARZIALE HEAD OF FINANCE FOR THE CRAGNOTTI & PARTNERS UNIT THAT OWNED THE LAWSON MARDON STAKE ACKNOWLEDGED TRADING THROUGH NOMINEE ACCOUNTS IN SHARES OF THE COMPANY THE TRADING TOOK PLACE JUST PRIOR TO AN OCTOBER 1992 EQUITY ISSUE BY LAWSON MARDON AND WAS AIMED AT BOOSTING THE STOCK PRICE PRIOR TO THAT ISSUE IN A BRIEF RELEASE CRAGNOTTI & PARTNERS SAID THE SETTLEMENT WAS REACHED TO AVERT A LENGTHY HEARING BEFORE ONTARIO REGULATORS THAT WOULD HAVE DELAYED THE COMPLETION OF A PENDING BID FOR LAWSON MR CRAGNOTTI ALSO AGREED TO PAY TO THE PROVINCE OF ONTARIO 2675000 CANADIAN DOLLARS US2 MILLION OF WHICH C25 MILLION REPRESENTS THE BENEFIT HE RECEIVED AS A RESULT OF THE TRADES THE REMAINING C175000 IS A CONTRIBUTION REFLECTING THE OSC'S COSTS OF INVESTIGATING THE TRADES THE INVESTIGATION DIDN'T INVOLVE LAWSON MARDON ITSELF AND HAS HAD NO IMPACT ON ITS OPERATIONS OSC STAFF AND COMPANY OFFICIALS SAID 9312170178 931217 HONGKONG LAND HOLDINGS PLANS TO STAY COMPANY DENIES RUMORS OF SALES BEFORE 1997 BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG WITH ASSET PRICES HERE AT RECORD HIGHS AND SINOBRITISH RELATIONS AT NEW LOWS NOW MIGHT SEEM THE RIGHT TIME TO TAKE PROFITS FOR ANYONE SKITTISH ABOUT HONG KONG'S FUTURE IN SUCH AN ENVIRONMENT FEW COMPANIES WOULD SEEM MORE LIKELY TO SELL A BUILDING OR TWO THAN HONGKONG LAND HOLDINGS LTD THE COLONY'S PREMIER LANDLORD AND ANCHOR OF THE JARDINE MATHESON EMPIRE A DIVERSIFIED GROUP THAT ALREADY HAS DEMONSTRATED ITS CAUTION TOWARD HONG KONG'S 1997 TRANSFER TO CHINESE SOVEREIGNTY BUT HONGKONG LAND CHIEF EXECUTIVE ALASDAIR MORRISON SOON TO BE JARDINE MATHESON HOLDINGS LTD'S NEXT MANAGING DIRECTOR OR TAIPAN SAYS THE COMPANY ISN'T SELLING WE HAVE NO BUILDINGS ON THE MARKET MR MORRISON SAYS IN AN INTERVIEW THAT COUNTERS WHAT MANY PEOPLE IN HONG KONG'S CLOSELY KNIT PROPERTY MARKET BELIEVE THEY SAY HONGKONG LAND HAS BEEN TALKING WITH PROSPECTIVE BUYERS ABOUT UNLOADING EXCHANGE SQUARE III THE SMALLEST OF THE COMPANY'S THREE EXCHANGE SQUARE TOWERS THAT OVERLOOK VICTORIA HARBOR OTHERS SAY NEARBY JARDINE HOUSE IS FOR SALE THE RUMORS ARE GIVEN WEIGHT BY JARDINE'S PAST ACTIONS TOWARD HONGKONG LAND WHICH THE GROUP CONTROLS THROUGH A 32 STAKE HELD BY JARDINE STRATEGIC HOLDINGS LTD OVER THE PAST SEVEN YEARS HONGKONG LAND HAS WHITTLED DOWN ITS COMMERCIAL PROPERTY HOLDINGS BY ABOUT 25 TO ROUGHLY 49 MILLION SQUARE FEET IT HAS SOLD OFF ALL ITS RESIDENTIAL PROPERTY HOLDINGS SO WHEN THE COMPANY SOLD ONE OF ITS OFFICE BUILDINGS IN HONG KONG'S CENTRAL BUSINESS DISTRICT LAST YEAR MANY PEOPLE INTERPRETED THE MOVE AS THE START OF A GRADUAL LIQUIDATION AHEAD OF 1997 MR MORRISON DISMISSES SUCH TALK AS IDLE MARKET CHATTER AND SAYS HONGKONG LAND IS HERE TO STAY HE SAYS THE COMPANY WILL MAINTAIN ITS CORE PROPERTY PORTFOLIO COMPRISING ABOUT HALF OF THE PRIME OFFICE SPACE IN CENTRAL EVEN IF THE OUTLINES OF THE PORTFOLIO OCCASIONALLY CHANGE I SEE A VERY SUBSTANTIAL CORE CENTRAL PORTFOLIO REMAINING AT THE HEART OF HONGKONG LAND IT'S BEEN THERE NOW FOR 104 YEARS AND I WOULD EXPECT THAT TO CONTINUE HE SAYS ANY SALES OR PURCHASES WOULD BE A MATTER OF FINE TUNING HE ADDS IF MR MORRISON'S PROPHECY BEARS OUT IT WILL REPRESENT A SIGNIFICANT ACT OF GOOD FAITH ON THE PART OF THE KESWICK FAMILY WHICH CONTROLS THE JARDINE MATHESON EMPIRE THE FAMILY LOST MUCH OF THEIR NET WORTH IN SHANGHAI AFTER THE COMMUNISTS TOOK OVER IN 1949 JARDINE MATHESON'S FORMER HEADQUARTERS IS STILL A LANDMARK OF SHANGHAI'S PICTURESQUE WATERFRONT JARDINE BORE THE BRUNT OF A VERBAL LASHING LAST YEAR WHEN CHINA CHASTISED BRITAIN FOR PAST COLONIAL ABUSES THE KESWICKS ALREADY HAVE TAKEN PRECAUTIONS AHEAD OF 1997 FOLLOWING BRITAIN'S 1984 AGREEMENT TO CEDE HONG KONG TO CHINA THEY MOVED THE CORPORATE DOMICILE FOR ALL OF JARDINE'S HONG KONGBASED COMPANIES TO BERMUDA LAST YEAR THEY MOVED THE PRIMARY LISTINGS OF THE GROUP'S PUBLIC COMPANIES TO LONDON FROM HONG KONG THOSE ACTIONS PUT THE GROUP UNDER A FAMILIAR LEGAL AND REGULATORY SYSTEM BUT THE BULK OF THE GROUP'S ASSETS ARE STAYING IN HONG KONG ACCORDING TO MR MORRISON HONGKONG LAND ACCOUNTS FOR ABOUT 43 OF THE JARDINE GROUP'S TOTAL ASSETS SINCE THE START OF THE YEAR THE COMPANY'S SHARE PRICE HAS RISEN MORE THAN 80 CLOSING TUESDAY AT HK2150 US278 ON THE STOCK EXCHANGE OF HONG KONG THE FACT THAT WE HAVE MANY BILLIONS OF US DOLLARS INVESTED IN HONG KONG REAL ESTATE IS TESTAMENT TO THE FACT THAT WE HAVE EVERY CONFIDENCE IN THE FUTURE OF HONG KONG HE SAYS AS FURTHER EVIDENCE OF THAT CONFIDENCE MR MORRISON POINTS TO HONGKONG LAND'S PARTICIPATION IN THE CONSORTIUM THAT HOPES TO BUILD THE TERRITORY'S NINTH CONTAINER TERMINAL AND THE COMPANY'S EXPRESSED INTEREST IN LAND NOW BEING RECLAIMED FROM VICTORIA HARBOR BY 1998 ROUGHLY TWO MILLION SQUARE FEET OF OFFICES A MILLION SQUARE FEET OF RETAIL SPACE AND AT LEAST ONE HOTEL ARE EXPECTED TO BE BUILT AROUND A RAILWAY STATION ON LANDFILL ADJACENT TO CENTRAL THE RAILWAY WILL LINK HONG KONG WITH ITS NEW AIRPORT BEING BUILT ON AN ISLAND WEST OF THE HARBOR OUR INTEREST WOULD BE IN PARTICIPATING IN A MIXEDUSE DEVELOPMENT SAYS MR MORRISON ADDING THAT ANY INVOLVEMENT IN THE RECLAMATION DEVELOPMENT WOULD DEPEND ON THE ECONOMICS OF THE PROJECT AND LIKELY WOULD BE UNDERTAKEN WITH PARTNERS NOW PROPERTY PROFESSIONALS SAY EXCHANGE SQUARE III IS ON THE BLOCK AN OFFICIAL AT THE AGRICULTURAL BANK OF CHINA SAYS THE BANK CONSIDERED BUYING THE BUILDING ABOUT SIX MONTHS AGO BUT DECIDED IT WAS TOO EXPENSIVE AND A SENIOR PROPERTY CONSULTANT IN HONG KONG WHO LIKE MOST OTHERS INTERVIEWED FOR THIS ARTICLE REQUESTED ANONYMITY SAYS HANG LUNG DEVELOPMENT CO IS TALKING ABOUT BUYING THE BUILDING PROPERTY AGENTS SAY THE 33STORY TOWER COULD FETCH AS MUCH AS HK45 BILLION MERE RUMORS MR MORRISON REPLIES A RESPONSE BACKED UP BY HANG LUNG'S CHAIRMAN RONNIE CHAN STILL HANG LUNG IS OBVIOUSLY VERY INTERESTED IN ACQUIRING PROPERTIES IN CENTRAL ACCORDING TO THE COMPANY'S MANAGING DIRECTOR NELSON YUEN HANG LUNG CURRENTLY HAS FIVE PROPERTIES IN THE DISTRICT INCLUDING THE STANDARD CHARTERED BANK BUILDING WHICH IT BOUGHT A YEAR AGO CERTAINLY HONGKONG LAND IS UNDER NO PRESSURE TO SELL WITH A VACANCY RATE OF LESS THAN 1 DEMAND FOR OFFICE SPACE INCREASING AND FEW OFFICE BUILDINGS BEING BUILT NEAR CENTRAL THE COMPANY'S PROPERTIES RISE IN VALUE DAY BY DAY PROPERTY WATCHERS IN THE TERRITORY EXPECT THAT TREND TO CONTINUE AT LEAST UNTIL LATE 1995 WHEN SOME NEW BUILDINGS WILL BE COMPLETED AND THE RECLAMATION PROJECT IS UNDER WAY WHERE ALL THE MONEY WILL GO IS A QUESTION AS YET UNANSWERED HONGKONG LAND HAS ONLY TWO INVESTMENTS OUTSIDE HONG KONG A 25 STAKE IN TRAFALGAR HOUSE PLC A LONDON ENGINEERING AND CONSTRUCTION COMPANY AND A SMALL JOINTVENTURE OFFICE BUILDING IN HANOI WE CONSTANTLY REVIEW OPPORTUNITIES ELSEWHERE IN ASIA AND THAT INCLUDES WITHIN MAINLAND CHINA SAYS MR MORRISON ADDING THAT THE COMPANY WILL CONSIDER INVESTING IF WE FEEL THAT THE TIME AND THE PROPERTY CYCLE IS RIGHT IN ANY PARTICULAR CITY 9312170177 931217 MIDAM TO BUY OHIO BANK BOWLING GREEN OHIO MIDAM INC SAID IT AGREED TO ACQUIRE FARMERS SAVINGS BANK NORTHWOOD OHIO IN A STOCK SWAP VALUED AT 82 MILLION FARMERS' SHAREHOLDERS WILL RECEIVE 52 MIDAM COMMON SHARES FOR EACH OF THEIR COMMON SHARES MIDAM A BANK HOLDING COMPANY WITH 19 BILLION IN ASSETS AT SEPT 30 EXPECTS THE TRANSACTION WILL CLOSE IN 1994'S SECOND QUARTER FARMERS HAS 659 MILLION IN ASSETS 9312170176 931217 LOUISIANA LAND & EXPLORATION NEW ORLEANS LOUISIANA LAND & EXPLORATION CO SAID IT COMPLETED THE ACQUISITION OF AN 11 WORKING INTEREST IN A CERTAIN BLOCK OF THE NORTH SEA FROM BRITISH GAS EXPLORATION & PRODUCTION FOR 1866 MILLION THE BLOCK BLOCK 16/17 IS IN THE UNITED KINGDOM SECTOR OF THE NORTH SEA SOUTH OF THE BRAE COMPLEX IN WHICH LL&E HAS AN INTEREST THE EFFECTIVE DATE OF THE PURCHASE IS JULY 1 OF THIS YEAR 9312170175 931217 MERRYGOROUND MISSES PAYMENTS TO MANY SUPPLIERS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL MERRYGOROUND ENTERPRISES INC MISSED PAYMENTS TO MANY OF ITS SUPPLIERS AND SAID A BANKRUPTCYLAW FILING COULDN'T BE RULED OUT THE APPAREL RETAILER'S SHARES PLUNGED 54 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING TO A 52WEEK LOW OF 2875 DOWN 3375 SHARES TRADED HEAVILY WITH VOLUME REACHING MORE THAN 97 MILLION SHARES COMPARED WITH AN AVERAGE DAILY VOLUME OF 392417 ASKED IF THE JOPPA MD COMPANY PLANNED TO FILE FOR BANKRUPTCYCOURT PROTECTION A SPOKESWOMAN SAID THAT THE COMPANY HAS BEEN WORKING HARD TO WORK OUT A SOLUTION SO THAT DOES NOT HAPPEN BUT SHE ADDED THAT WHILE A BANKRUPTCY FILING CAN'T BE RULED OUT AS A POSSIBILITY IT IS NOT THE PATH WE CHOOSE THE RETAILER WHOSE SHOPS CATER TO YOUNG MEN AND WOMEN HAS BEEN HAMMERED BY A STRING OF POOR MONTHLY SALES IT RECENTLY DISMISSED SEVERAL OF ITS MERCHANDISING EXECUTIVES AND BROUGHT BACK ONE OF ITS FOUNDERS LEONARD WEINGLASS TO TAKE OVER MERCHANDISING STRATEGY MERRYGOROUND OPERATES 1460 RETAIL STORES IN 44 STATES LARGELY IN SHOPPING MALLS MOSTLY UNDER THE NAMES CHESS KING CIGNAL AND MERRYGOROUND THE COMPANY SAID IT MISSED ITS DEC 10 PAYMENTS TO FACTORING COMPANIES THAT GUARANTEE PAYMENT FOR MERCHANDISE SHIPMENTS THE COMPANY WOULDN'T DISCLOSE THE SIZE OF THE MISSED PAYMENTS DESPITE MISSING THE PAYMENTS THE COMPANY SPOKESWOMAN SAID THAT OUR CASH POSITION REMAINS STRONG SHE SAID THE COMPANY WAS WORKING WITH TWO SEPARATE LENDING GROUPS INVOLVING SEVERAL LENDERS IT'S BEEN VERY DIFFICULT TO GET ALL THESE SEPARATE PARTIES TO REACH CONSENSUS BUT WE ARE WORKING TOWARDS A RESOLUTION BUT PETER SCHAEFFER A PARTNER IN JOHNSON REDBOOK SERVICE WHICH FOLLOWS RETAILER STOCKS SAID HE EXPECTS THE COMPANY WILL FILE FOR BANKRUPTCY PROTECTION IT HAS NO DIRECTION IT'S BEEN WANDERING AROUND AIMLESSLY THEY BOUGHT INTO THE YOUNG MEN'S BUSINESS WHEN THE BUSINESS WAS AT ITS WORST MR SCHAEFFER SAID REFERRING TO THE MAY ACQUISITION OF THE CHESS KING DIVISION FROM MELVILLE CORP MERRYGOROUND HAS RECENTLY REPORTED DOUBLEDIGIT SALES DECLINES FROM ITS STORES OPEN AT LEAST ONE YEAR CULMINATING IN A NOVEMBER SAMESTORE SALES DROP OF 23 WITH ITS SHOPS CONCENTRATED ON CLOTHES FOR YOUNG MEN AND WOMEN THE RETAILER HAS BEEN CAUGHT IN A GENERAL SLOWDOWN IN APPAREL SALES IN RECENT MONTHS BUT ANALYSTS ADD THE COMPANY IS STUCK WITH ONCETRENDY GARB THAT ISN'T SELLING AND HASN'T COME UP WITH ANY NEW FASHION TRENDS THAT WILL SELL 9312170174 931217 REVIEW & OUTLOOK EDITORIAL ASIDES THERE ARE MECHANISMS' MEANWHILE WE HAVE AN EXPANSIVE NEW HEAD OF THE US FOREST SERVICE JACK WARD THOMAS SAID YESTERDAY THAT HIS INTENTION TO MAKE HIS JOB ONE OF ENVIRONMENTAL PROTECTION WILL SUCCEED ONLY IF IT INCLUDES PUBLIC AND PRIVATE LANDS HE SAID I DON'T MEAN TO IMPLY THAT WE SEEK ANY REGULATORY AUTHORITY OVER PRIVATE LAND BUT THERE ARE MECHANISMS NO DOUBT 9312170173 931217 12 DAYS OF CHRISTMAS VISIONS OF BIG UGLY HUNTING BOOTS ARE DANCING IN WOMEN'S HEADS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHAT DO YOU BUY THE FASHIONABLY HIP WOMAN IN YOUR LIFE THIS CHRISTMAS BIG CLUNKY BOOTS WHAT ELSE IN THIS SEASON OF RETAIL SHORTAGES TIMBERLAND CO IS HAVING TROUBLE KEEPING UP WITH THE DEMAND FOR ITS MODEL 10361 THE WOMEN'S WHEAT MINIBUCK THAT'S THE WATERPROOF BOOT MADE OF FULLGRAIN SILICONEIMPREGNATED WATERPROOF LEATHER WITH THINSULATE INSULATION WOMEN USED TO WANT THEIR FEET TO LOOK DAINTY NO MORE DOC MARTENS THE CLUNKY PLAIN BOOT AND SHOE LINE ZOOMED TO POPULARITY LAST SUMMER AND THIS FALL NEIMAN MARCUS FEATURED 10 PAGES OF HEAVY BOOTS IN ITS CATALOG RIGHT BEHIND THE TIMBERLAND MODEL IN POPULARITY IS A BOOT MADE BY SEVERAL MANUFACTURERS KNOWN AS THE POLE CLIMBER PITCH BLACK WITH THICK LUG SOLES BUT IT'S THE TAN TIMBERLAND THAT IS THE MIGHTY MORPHIN POWER RANGERS OF THE SHOE WORLD THIS SEASON WE DIDN'T PLAN ENOUGH WE DIDN'T SHIP ENOUGH SAYS LARRY KLANE TIMBERLAND'S VICE PRESIDENT OF SALES OF THAT MODEL WHICH RETAILS FOR JUST OVER 100 WE GOT CAUGHT IN THAT VICIOUS FASHION WAVE HE SAYS NEW YORK'S PARAGON SPORTING GOODS SAYS THE BOOTS ARE HOT AS HELL FRANK SCHREIBER OWNER OF MCCREEDY & SCHREIBER A NEW YORK SHOP CAN'T KEEP ENOUGH IN STOCK THE '90S ARE HERE THE BOOT IS SENSIBLE NOT SOME MOD BOOT IT'S SO UGLY IT'S BEAUTIFUL HE SAYS FORMERLY THE FOOTWEAR OF WORKMEN AND PREPPIES ON WINTER VACATION WORKBOOTS HAVE FOUND THEIR WAY INTO SOME ILLUSTRIOUS VENUES AT THE AD AGENCY CHIAT/DAY NEW YORK LAUREN PLOSCOWE TRODS THE HALLS IN HER POLE CLIMBERS I DON'T WEAR THEM TO LOOK GOOD SHE SAYS CAROL DEMARTIN ALSO OF CHIAT/DAY SAYS IT'S ABOUT FORM YOU WANT THE LINE OF THE LARGE FOOT AND THIN LEG THE TREND IS STILL A MYSTERY TO SOME ANNIE FLANDERS STYLE CONSULTANT TO BUZZ MAGAZINE SEES THE BOOTS EVERYWHERE EVEN IN SNOWLESS LA AS FASHION THEY MAKE YOUR FEET SWEAT SHE SAYS INDEED THERE ARE LIMITS EVEN MS PLOSCOWE WON'T WEAR HER BOOTS TO CHIAT/DAY'S BLACKTIE CHRISTMAS PARTY EXPLAINING I AM FEMININE TOO 9312170172 931217 FLEET FINANCIAL UNIT IN GEORGIA SETTLES COMPLAINTS OF UNFAIR LENDING PRACTICES BY SUZANNE ALEXANDER RYAN STAFF REPORTER OF THE WALL STREET JOURNAL A UNIT OF FLEET FINANCIAL GROUP INC AGREED TO LEND 70 MILLION AT REDUCED INTEREST RATES AND TO MAKE UP TO ABOUT 35 MILLION IN OTHER CONCESSIONS TO SETTLE COMPLAINTS OF UNFAIR LENDING PRACTICES IN GEORGIA THE SETTLEMENT UNDER WHICH FLEET ADMITS NO GUILT IS ONE OF THE LARGEST EVER BY A COMPANY IN CASES INVOLVING FAIRLENDING ISSUES MANY OF THE BORROWERS WHO WILL BENEFIT FROM THE SETTLEMENT ARE LOWINCOME BLACKS WHO WERE CHARGED HIGH RATES BY FLEET FINANCE INC BASED IN ATLANTA THE FEDERAL RESERVE BOARD WHICH HAS SHOWN NEW TOUGHNESS ON FAIRLENDING RULES RECENTLY HAD BEEN MONITORING DEVELOPMENTS IN GEORGIA AS IT WEIGHED FLEET'S EXPANSION PLANS WHICH WILL SOON NEED REGULATORY APPROVAL FLEET FINANCIAL OF PROVIDENCE RI IS THE 15THLARGEST BANK IN THE COUNTRY THE ACCORD COMES JUST DAYS AFTER THE JUSTICE DEPARTMENT ANNOUNCED A 960000 SETTLEMENT WITH A UNIT OF HARTFORD CONNBASED SHAWMUT NATIONAL CORP ONE OF FLEET'S BIGGEST COMPETITORS OVER CHARGES OF DISCRIMINATION AGAINST BLACK AND HISPANIC BORROWERS THE MONTH BEFORE SHAWMUT'S APPLICATION TO ACQUIRE A NEW HAMPSHIRE BANK WAS REJECTED BY THE FED BECAUSE OF FAIRLENDING CONCERNS FLEET AGREED TO THE GEORGIA SETTLEMENT ACCORDING TO THE STATE'S ATTORNEY GENERAL TO PREVENT CHARGES OF UNFAIR LENDING THAT OTHERWISE WOULD HAVE BEEN FILED BY THE STATE FLEET ALSO SAID IT SETTLED SUBJECT TO COURT APPROVAL A PRIVATE GEORGIA CLASSACTION LAWSUIT IN WHICH IT WAS ACCUSED OF REVERSE REDLINING OR THE TARGETING OF MINORITY NEIGHBORHOODS WHERE STANDARD MORTGAGES ARE SCARCE WITH HIGHERRATE LOANS NO FINANCIAL TERMS OF THIS SETTLEMENT WERE DISCLOSED A NUMBER OF LAWSUITS AND CLAIMS AGAINST FLEET BY CLIENTS OF THE NONPROFIT GROUP ATLANTA LEGAL AID WERE ALSO SETTLED IN PRINCIPLE UNDER UNDISCLOSED TERMS THE STATE SAID IT FOUND NO EVIDENCE TO SUPPORT CLAIMS THAT FLEET MADE OR PURCHASED LOANS WITH THE INTENT TO FORECLOSE ON THEM BUT IT SAID THAT FLEET VIOLATED FAIR BUSINESS LAWS BY CHARGING EXCESSIVE INTEREST RATES ON A SIGNIFICANT NUMBER OF LOANS IN GEORGIA THE STATE ALSO CONCLUDED THAT FLEET DIDN'T ADEQUATELY OR ACCURATELY INFORM BORROWERS IN THEIR LOAN DOCUMENTS THAT THE INTEREST ON THE LOANS WAS BEING CHARGED ON A DAILY BASIS UNDER THE SETTLEMENT WITH GEORGIA FLEET COMMITTED 70 MILLION OVER A FIVEYEAR PERIOD TO A FUND TO BE ADMINISTERED BY THE STATE HOUSING AND FINANCE AUTHORITY FOR LOANS TO LOWINCOME BORROWERS THROUGHOUT GEORGIA FLEET WILL BENEFIT FROM ALL INTEREST AND PRINCIPAL REPAYMENTS ON THE LOANS WHICH WILL BE MADE AT ABOUT ONE PERCENTAGE POINT BELOW THE MARKET RATE FLEET SAID IT WILL ALSO PROVIDE ABOUT 30 MILLION IN CASH REFUNDS INTERESTRATE REDUCTIONS AND PASTDUE INTEREST FORGIVENESS TO BORROWERS THIS PACKAGE APPLIES TO ABOUT 18000 ELIGIBLE CURRENT AND FORMER FLEET FINANCE CUSTOMERS IN GEORGIA WHOSE LOANS WERE OUTSTANDING BETWEEN JAN 1 1991 AND AUG 1 1993 ALL CUSTOMERS WHO HAD OUTSTANDING LOANS DURING THAT TIME WILL BE OFFERED 164 EACH TOTALING ABOUT 3 MILLION MICHAEL R ZUCCHINI VICE CHAIRMAN OF FLEET FINANCIAL SAID FLEET ENTERED INTO THESE SETTLEMENT AGREEMENTS TO PUT THE ALLEGATIONS BEHIND US ALTHOUGH FLEET FINANCE FIRMLY BELIEVES THAT ITS LOANS ARE LAWFUL WE CANNOT OVERLOOK THE FACT THAT TERMS OF SOME LOANS PURCHASED FROM THIRDPARTY LENDERS ARE MORE AGGRESSIVE THAN THE WAY WE NOW DO BUSINESS THE REV TIMOTHY MCDONALD AN ATLANTA MINISTER WHO HAS COUNSELED FLEET BORROWERS EXPRESSED DISSATISFACTION WITH THE SETTLEMENT ARGUING THAT FLEET SHOULDN'T PROFIT FROM ITS 70 MILLION LOAN FUND I DON'T THINK THAT WAS THE INTENT OF THE UPROAR HE SAID HOWARD ROTHBLOOM ATTORNEY FOR PLAINTIFFS IN ANOTHER CLASSACTION SUIT AGAINST FLEET SAID HE DIDN'T SETTLE BECAUSE TERMS WERE TOTALLY INADEQUATE MR ROTHBLOOM SAID HIS CASE INVOLVING 14000 PLAINTIFFS WILL GO TO TRIAL IN FEBRUARY 9312170171 931217 MORE UNDERWRITERS OF MUNIS JOIN A BAN ON PAYTOPLAY' GIFTS THE 51 FIRMS ARE ESTIMATED BY INDUSTRY EXPERTS TRACKING THE MATTER TO ACCOUNT FOR NEARLY 80 OF THE NEWISSUE MUNICIPALBOND UNDERWRITING BUSINESS THE VOLUNTARY BAN WAS LAUNCHED BY 17 MAJOR BOND HOUSES IN LATE OCTOBER WHEN THE INDUSTRY INITIATIVE WAS UNVEILED JOINTLY BY SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT AND PRIMERICA CORP VICE CHAIRMAN FRANK ZARB TWO MORE BIG FIRMS JOINED THE SOCALLED GROUP OF 17 BEFORE AN ADDITIONAL 23 SIGNED ON EARLIER THIS MONTH THE NEW PARTICIPANTS ARE ARTEMIS CAPITAL GROUP INC BARR BROTHERS & CO CRAIGIE INC GRIFFIN KUBIK STEPHENS & THOMPSON INC HANIFEN IMHOFF INC ABN AMRO SECURITIES INC'S LASALLE NATIONAL BANK AND LASALLE NATIONAL CAPITAL MARKETS DIVISION EA MOOS LP SAMUEL A RAMIREZ & CO AND WILLIAM E SIMON & SONS MUNICIPAL SECURITIES INC THE VOLUNTARY BAN HAS PICKED UP MOMENTUM AS THE MUNICIPAL SECURITIES RULEMAKING BOARD A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT HAS PRESSED AHEAD WITH A REGULATORY PROPOSAL TO ACHIEVE THE SAME BASIC GOAL 9312170170 931217 WHO'S NEWS BRITISH DRUG COMPANY PICKS CHIEF EXECUTIVE LONDON MEDEVA PLC SAID WILLIAM BOGIE CURRENTLY HEAD OF ITS EUROPEAN OPERATIONS WAS PROMOTED TO THE NEW POST OF CHIEF EXECUTIVE OFFICER THE MOVE FULFILLED THE STRUGGLING BRITISH COMPANY'S PROMISE TO HAVE A CHIEF EXECUTIVE IN PLACE BEFORE CHRISTMAS SHORING UP AN ADMITTEDLY THIN TOPMANAGEMENT TEAM BUT THE CHOICE OF DR BOGIE DISAPPOINTED SOME ANALYSTS WHO EXPECTED MEDEVA TO RECRUIT AN OUTSIDER IN A EFFORT TO REVIVE THE COMPANY'S TARNISHED IMAGE DR BOGIE A 49YEAROLD BRITON JOINED MEDEVA LAST SPRING AFTER NEARLY TWO DECADES AT GERMANY'S HOECHST AG SPURNING THE EXPENSIVE AND RISKY PROCESS OF DEVELOPING NEW DRUGS FROM SCRATCH MEDEVA OVER THE PAST FEW YEARS HAS GOBBLED UP SMALLER RIVALS AND FOUND NEW WAYS TO MARKET DOZENS OF AGING MEDICINES DISCARDED BY RIVAL PHARMACEUTICAL FIRMS MEDEVA USED ITS OWN HIGHFLYING STOCK TO FINANCE MOST OF ITS ACQUISITIONS BUT THE BUYING SPREE CAME TO A HALT THIS SUMMER WHEN MEDEVA DISCLOSED THAT OPERATING PROBLEMS AT TWO US UNITS WOULD CLOBBER FULLYEAR PROFIT AND ITS STOCK PLUMMETED IN TURBULENT TRADING IN LONDON MEDEVA'S STOCK HAS RECOVERED SOMEWHAT SINCE THE SUMMER BUT REMAINS DOWN 36 FOR THE YEAR TO DATE 9312170169 931217 ITALMOBILIARE PROFIT RISES 07 MILAN ITALMOBILIARE SPA THE KEY HOLDING COMPANY OF ITALIAN INDUSTRIALIST GIAMPIERO PESENTI REPORTED THAT GROSS PROFIT IN THE FIRST HALF OF ITS FISCAL YEAR ROSE 07 TO 298 BILLION LIRE 176 MILLION THE COMPANY SAID THAT ITS RESULTS WERE POSITIVE ESPECIALLY IN CONSIDERATION OF THE DIFFICULT NATIONAL AND INTERNATIONAL ECONOMIC SITUATION THE PESENTI GROUP HAS INTERESTS IN THE BUILDING AND CONSTRUCTION INDUSTRY 9312170168 931217 WHO'S NEWS GEMINI CONSULTING INC GEMINI CONSULTING INC MORRISTOWN NJ JOSEPH DEGENNARO 46 YEARS OLD WAS NAMED VICE PRESIDENT HUMAN RESOURCES A NEW POSITION AT THIS BUSINESS CONSULTING CONCERN MR DEGENNARO WAS FORMERLY DIRECTOR OF HUMAN RESOURCES AT ACCOUNTING FIRM COOPERS & LYBRAND 9312170167 931217 NEW ZEALAND TOURISM RISES WELLINGTON NEW ZEALAND THE NUMBER OF TOURISTS ARRIVING IN NEW ZEALAND IN THE YEAR ENDED IN NOVEMBER ROSE 10 TO 11 MILLION FROM A YEAR EARLIER STATISTICS NEW ZEALAND SAID THE GOVERNMENT AGENCY SAID THE NUMBER OF TOURISTS ARRIVING IN NEW ZEALAND DURING NOVEMBER WAS ALSO HIGHER RISING 13 FROM A YEAR EARLIER TO 116900 ON A SEASONALLY ADJUSTED BASIS THE NUMBER OF TOURISTS ENTERING NEW ZEALAND FELL SLIGHTLY BETWEEN OCTOBER AND NOVEMBER 1993 BUT THE AGENCY NOTED THAT NOVEMBER'S FIGURES ARE STILL THE SECONDHIGHEST RECORDED SINCE 1982 WHEN THE DATA WERE FIRST COMPILED 9312170166 931217 WHO'S NEWS KARCHER ENTERPRISES' CHAIRMAN MAY DECIDE TO STEP DOWN BY JUNE ANAHEIM CALIF ELIZABETH A SANDERS CHAIRMAN OF CARL KARCHER ENTERPRISES INC WHO ASSUMED THE HELM OF THE HAMBURGER CHAIN IN OCTOBER AFTER THE OUSTER OF COMPANY FOUNDER CARL N KARCHER HAS SAID SHE MAY STEP DOWN AS EARLY AS NEXT JUNE A LIKELY SUCCESSOR IS WILLIAM P FOLEY II WHO LED AN INVESTOR GROUP THAT RECENTLY BECAME THE COMPANY'S LARGEST SHAREHOLDER BY BAILING MR KARCHER OUT OF BAD LOANS IN EXCHANGE FOR MUCH OF HIS STOCK IN THE COMPANY I'D BE THE LOGICAL PERSON TO STEP INTO THAT POSITION ASSUMING THAT SHE DECIDES NOT TO BE CHAIRMAN ANY MORE SAID MR FOLEY CHAIRMAN AND CHIEF EXECUTIVE OF FIDELITY NATIONAL FINANCIAL INC IRVINE CALIF LAST WEEK HE WAS NAMED A CARL KARCHER ENTERPRISES DIRECTOR ALONG WITH FELLOW INVESTOR RON LANE WHILE A SPOKESMAN FOR CARL KARCHER ENTERPRISES SAID THERE AREN'T ANY SPECIFIC SUCCESSION PLANS YET HE EXPLAINED THAT THE APPOINTMENT OF MS SANDERS 48 YEARS OLD WAS AN INTERIM MEASURE THAT WAS NEVER MEANT TO BE A CAREER MOVE FOR HER 9312170165 931217 WHO'S NEWS COLUMBIA HEALTHCARE CORP COLUMBIA HEALTHCARE CORP LOUISVILLE KY THIS HOSPITAL CONCERN SAID JAMES D BOHANON COCHIEF OPERATING OFFICER WILL RETIRE EFFECTIVE DEC 31 MR BOHANON 48 YEARS OLD IS RECOVERING FROM SURGERY TO TREAT A LEG INFECTION THE COMPANY SAID DAVID VANDEWATER 43 WILL BECOME CHIEF OPERATING OFFICER MR VANDEWATER AND MR BOHANON HAD BEEN COCHIEF OPERATING OFFICERS SINCE SEPTEMBER WHEN COLUMBIA HOSPITAL CORP MERGED WITH GALEN HEALTH CARE INC TO FORM COLUMBIA HEALTHCARE 9312170164 931217 TEREX PRIVATE PLACEMENT WESTPORT CONN TEREX CORP SAID IT EXPECTS TO COMPLETE ITS PRIVATE PLACEMENT OF PREFERRED STOCK AND WARRANTS BY MONDAY RAISING GROSS PROCEEDS OF 30 MILLION THE HEAVYEQUIPMENT MAKER SAID IT WOULD BE UNABLE TO MEET BORROWING COVENANTS WITHOUT THE PRIVATE PLACEMENT TEREX SAID THAT AS ITS FINANCIAL VIABILITY WAS IN JEOPARDY IT COULD PROCEED WITH THE OFFERING WITHOUT PRIOR SHAREHOLDER CONSENT AS PERMITTED UNDER NEW YORK STOCK EXCHANGE POLICY 9312170163 931217 IN THE LAB THIS PROFESSOR HAS A LITTLE BOY'S DREAM JOB DROPPING COSTLY EQUIPMENT TO SEE IF IT BOUNCES BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL MURRAY HILL NJ SURESH GOYAL SEEMS LIKE A CLUMSY GUY DOZENS OF TIMES A DAY HE DROPS EXPENSIVE GADGETS TO THE FLOOR AND GETS PAID FOR IT DR GOYAL A MECHANICAL ENGINEER AT AT&T BELL LABORATORIES SEARCHES FOR JUST THE RIGHT COMBINATION OF STURDY DESIGN AND HIGHIMPACT MATERIAL THAT WILL PROTECT FUTURE AT&T PORTABLE COMPUTERS AND OTHER MOBILE GIZMOS OF TOMORROW HIS WORK AT AMERICAN TELEPHONE & TELEGRAPH CO'S GIANT RESEARCH ARM IS SORT OF THE FLIPSIDE OF THE 1960S DISNEY FLICK FLUBBER UNLIKE THAT GOOFY PROFESSOR WHO INVENTED SUPERBOUNCY RUBBER DR GOYAL IS LOOKING FOR RUBBER THAT WON'T BOUNCE THE RIGHT MIX A DEAD RUBBER THAT WILL ABSORB ALL THE IMPACT OF A BLOW RATHER THAN LET THE FORCE RATTLE THE PRODUCT'S INNARDS WILL LET AT&T MAKE EVERSMALLER EVERTOUGHER GEAR DR GOYAL IS TRYING TO FIGURE OUT WHETHER THE RIGHT MIX EVEN EXISTS OR WHETHER BELL LABS WILL HAVE TO INVENT IT WIELDING SPECIAL BALLS OF DEAD RUBBER AND A HIGHPOWERED COMPUTER DR GOYAL SPENDS HIS DAYS CHUCKING BANGING AND BUMPING EXPENSIVE WARES IN HIS LAB AND TAKING COMPUTER READINGS ON THE BLOWS WITH SOFTWARE OF HIS OWN DESIGN IN THE FUTURE AT&T CAN USE THE SOFTWARE TO CREATE THE HOUSINGS OF ITS PORTABLE GEAR AS COMPUTERS GET MORE MOBILE AND THEIR USERS BECOME OBSESSED WITH MOBILITY DURABILITY IS BECOMING A CRUCIAL FEATURE POCKET COMPUTERS AND FLIPOPEN PHONES WILL HOUSE ELECTRONIC COMPONENTS THAT WILL LET ROVING PEDESTRIANS EXCHANGE ELECTRONIC SCRIBBLES AND PHONE CALLS AND PERHAPS EVEN PLACE A LOTTERY WAGER OR TWO IN DR GOYAL'S LAB THESE MULTIMEDIA DOOHICKEYS HAVE TO TAKE A REAL LICKIN' TO KEEP ON TICKIN' THESE PRODUCTS WILL HAVE TO BE EXTREMELY RUGGED THE RESEARCHER SAYS IF THEY'RE NOT AND KIDS CARRY THEM HE WIGGLES HIS EYEBROWS AND LAUGHS WATCH OUT DR GOYAL A 33YEAROLD SCIENTIST WITH A PHD FROM CORNELL WHO JOINED BELL LABS FOUR YEARS AGO WORKS WITH VISCOELASTIC POLYMERS SOME OF WHICH ARE DEAD RUBBER AS WELL AS WITH NEW GUNK THAT ISN'T EVEN FOR SALE YET ON A RECENT DAY HE DISPLAYS TWO BLACK RUBBER BALLS ABOUT AN INCH IN DIAMETER ONE WOULD DELIGHT A CHILD IT TAKES A LIVELY BOUNCE AS DR GOYAL DROPS IT ON THE FLOOR HE HAS TO CRAWL AFTER IT BEFORE IT DISAPPEARS UNDER A DESK NORMAL RUBBER HAS A NATURAL TENDENCY TO BOUNCE BECAUSE IT RETURNS TO ITS ORIGINAL SHAPE AFTER DENTING ON IMPACT DR GOYAL SPEAKS OF ITS DEFORMATION PHASE AND RESTITUTION PHASE IT'S COMPLETELY ELASTIC AND GIVES THE ENERGY BACK HE SAYS THE DEAD RUBBER BALL HAS NO BOUNCE IT HITS THE FLOOR LIKE A PLUMMETING CAT ON ITS NINTH LIFE THE BALL HAS HIGH HYSTERESIS AFTER IMPACT IT LOSES ALL ENERGY FIRST DISCOVERED IN THE LATE 1960S DEAD RUBBER HAS A VASTLY DIFFERENT MOLECULAR STRUCTURE FROM SAY THE PINK SPALDENES ON NEW YORK CITY STICKBALL COURTS REGULAR RUBBER CONTAINS MONOMERS GROUPINGS OF CARBON AND HYDROGEN ATOMS LINKED IN MOLECULAR CHAINS THE BALL BOUNCES BECAUSE THE CHAINS ARE SO TIGHTLY KNIT IN DEAD RUBBER THE MOLECULAR CHAINS ARE LOOSE AND CONSTANTLY SLIP AGAINST ONE ANOTHER COILING AND UNCOILING THIS RELAXATION ALLOWS DEAD RUBBER TO SOAK UP AND DISSIPATE THE IMPACT FROM A BLOW THE FRICTION FROM THE CHAINS' MOVEMENT ALSO CAUSES HEAT THAT IS WHY DEAD RUBBER CAN LOSE ITS ANTIBOUNCE PROPERTIES WHEN COOLED DR GOYAL DEMONSTRATES THIS PHENOMENON HE DROPS A STEEL BALL ON A DEAD RUBBER PAD COOLED IN AN ICE BUCKET IT BOUNCES SURPRISINGLY HIGH WE NEED TO FIND A MATERIAL THAT ABSORBS A LOT OF IMPACT BUT WHICH WILL WORK AS WELL IN PHOENIX AS IT DOES IN A MINNEAPOLIS WINTER HE SAYS HIGHSPEED VIDEO CAMERAS SNAPPING IMAGES AT 12000 FRAMES A SECOND INSTEAD OF THE USUAL 30 FRAMES TAPE EACH DOWNWARD PLUNGE EACH MACHINE IS WIRED WITH ELECTRONIC SENSORS AND DR GOYAL'S COMPUTER RECORDS EVERY SHOCK LETTING HIM KNOW JUST HOW FAR HE CAN GO BEFORE THE RUBBERENCASED PROTOTYPES HE'S BEATING ON FINALLY GIVE UP THEIR GHOSTS THE IMPACT ITSELF IS SIMULATED AND PLOTTED ON A SILICON GRAPHICS WORKSTATION LOADED WITH DR GOYAL'S SPECIAL SOFTWARE WHICH TRACKS THE FORCE AND DEFORMATION ON THE OBJECT AS IT HITS THE FLOOR DR GOYAL IS DESIGNING SOFTWARE THAT WILL EVENTUALLY LET HIM SIMULATE ALL OF THIS IN THREE DIMENSIONS WITHOUT HAVING TO DESTROY ACTUAL PRODUCTS HE CAN THEN MAKE CALCULATIONS ON THE STRESS THAT INTERNAL COMPONENTS ABSORB WHEN AN OBJECT IS DROPPED ON THIS DAY THE VICTIM IS A PROTOTYPE OF A NEW PENBASED COMPUTER THAT AT&T'S NCR CORP WON'T INTRODUCE UNTIL SOMETIME NEXT YEAR HE DROPS THE GADGET WHICH IS COATED IN DEAD RUBBER FROM FIVE FEET PICKS IT UP AND DROPS IT AGAIN BETRAYING NO SIGNS OF PLEASURE AT BEING ALLOWED TO BREAK SOMETHING SO OBVIOUSLY DELICATE AND COSTLY TURNING TO HIS COMPUTER HE SEES AN ANIMATED THREEDIMENSIONAL PICTURE ON HIS SCREEN SHOWING THE TINY COMPUTER AS IT HITS THE HARD FLOOR HE CAREFULLY NOTES THE DIFFERENT ANGLES OF IMPACT IN THE RIGHTHAND CORNER OF HIS SCREEN NUMBERS RUN RAPIDLY AS THE COMPUTER RECORDS THE CONTACT FORCES THE MORE AN OBJECT BOUNCES UPON IMPACT THE MORE LIKELY IT IS TO BE DAMAGED NOT SOLELY BECAUSE OF THE FIRST BLOW BUT ALSO BECAUSE OF THE SECOND ONE DR GOYAL RUNS AN ANIMATED PICTURE OF A PENCIL DROPPING THE ENTIRE PENCIL FALLS AT THE SAME VELOCITY BUT WHEN ONE END HITS FIRST THE FOLLOWUP BLOW ON THE OTHER END CAN OCCUR AT UP TO TWICE THE SPEED THAT'S BECAUSE THE END THAT HITS FIRST BOUNCES BACK AT THE SAME VELOCITY THEREBY DOUBLING THE SPEED OF THE OPPOSITE END WHEN A PRODUCT IS DROPPED THE FASTER ITS CASING ABSORBS THE BLOW AND DOES AWAY WITH IT THE BETTER OFF THE COMPONENTS INSIDE ARE SOME MATERIALS WILL DISSIPATE ENERGY IN A FEW MILLISECONDS WHICH IS GOOD WHILE OTHERS TAKE MUCH LONGER DR GOYAL EXPLAINS LATELY HOWEVER HE HAS BEEN WONDERING WHETHER THE ULTIMATE ANSWER MAY LIE IN THE SHAPE AS WELL AS THE MAKEUP OF A PRODUCT TODAY'S CELLULAR PHONES FOR EXAMPLE ARE ALL SHARP CORNERS AND FLAT SURFACES BAD GEOMETRY FOR AVOIDING THE IMPACT OF A NASTY FALL THEY WOULD STAND A BETTER CHANCE OF SURVIVAL IF THEY WERE ROUNDED OR OVAL DR GOYAL SAYS HENCE THE POCKET COMMUNICATOR OF TOMORROW MAY FEEL LIKE DEAD RUBBER AND LOOK SOMETHING LIKE AN ELONGATED EGG 9312170162 931217 TECHNOLOGY PROCYTE GETS FDA CLEARANCE KIRKLAND WASH PROCYTE CORP A PHARMACEUTICAL COMPANY SAID THAT THE FOOD AND DRUG ADMINISTRATION HAS TOLD IT THAT IT CAN RESUME TESTING ITS IAMIN GEL WHICH THE FDA HAD SUSPENDED THIS WEEK THE FDA ORDERED A HALT TO THE TESTS OF THE GEL DESIGNED TO TREAT FOOT ULCERS IN DIABETICS AFTER SEVEN PATIENTS IN THE CLINICAL TRIAL DIED FROM HEART PROBLEMS THE COMPANY SAID THE DEATHS WERE UNRELATED TO THE GEL 9312170161 931217 THE AMERICAS BOLIVIA SHIFTS INTO FAST LANE OF ECONOMIC GROWTH BY STEVE HENDRIX UMIRI BOLIVIA WHEN LA PAZ LAWYER JAMIE BAKIR LOOKS AT THE PEELING PLASTER AND ROTTING PIPES LINING THE SPA ROOM OF THIS AGING BOLIVIAN RESORT HOTEL HE SEES AN OPPORTUNITY THIS COULD BE BEAUTIFUL MR BAKIR SAYS AS HE PICKS RUST OFF THE DRIPPING HYDRANT THAT BRINGS STEAMING WATER DIRECTLY FROM THE GEOTHERMAL SPRINGS OUTSIDE BUT THEY WILL NEVER PUT ONE MORE DOLLAR INTO THIS PLACE MR BAKIR SAYS OF THE HOTEL'S GOVERNMENT OWNERS WE WANT TO MAKE IT A GREAT RESORT TOURISTS FROM LA PAZ EVEN AMERICANS AND EUROPEANS WOULD COME HERE MR BAKIR IS SHOWING OFF THE HOTEL PREFECTURAL UMIRI A GOVERNMENT OWNED AND OPERATED HOTSPRINGS RESORT CARVED DRAMATICALLY INTO AN ANDEAN MOUNTAINSIDE TWO HOURS SOUTH OF LA PAZ IN THE 1970S MR BAKIR'S BROTHER APPROACHED THE GOVERNMENT ABOUT BUYING AND RESTORING IT THEY TURNED HIM DOWN FLAT STATE PROPERTIES EVEN ONES CRUMBLING ON THEIR FOUNDATIONS WERE THE PROVINCE OF THE STATE THEY SAID NOW 25 YEARS LATER THE YOUNGER MR BAKIR MAY GET A CHANCE IF HE CAN ATTRACT THE INVESTORS THE STATE WILL SELL ACCORDING TO THE COUNTRY'S NEW USEDUCATED PRESIDENT GONZALO SANCHEZ DE LOZADA THE TIME HAS COME TO GIVE THE PRIVATE SECTOR A SHOT AT ECONOMIC AND INDUSTRIAL DEVELOPMENT IN BOLIVIA KNOWN TO BOLIVIANS SIMPLY AS GONI THE GRINGOACCENTED PRESIDENT WAS ELECTED THIS YEAR ON A BOLD PLAN TO PRIVATIZE STATE HOLDINGS BY SELLING HALF OF EACH AND DIVIDING THE REST EQUALLY AMONG ALL BOLIVIANS THE PRESIDENT PLANS TO OFFER 49 OF EACH INDUSTRY ALONG WITH FULL MANAGEMENT CONTROL AND ALL VOTING POWER TO AN OUTSIDE PARTNER IE A WELLHEELED FOREIGN COMPANY OR COMBINE THE REST HE WILL DISTRIBUTE IN SOME FORM OF NONVOTING SHARES TO ALL ADULT CITIZENS BOLIVIANS WILL BE FREE TO KEEP THEIR STOCK OR SELL IT ON AN OPEN MARKET EVEN TO THE OUTSIDE PARTNER THE GOVERNMENT HAS DROPPED ALL RESTRICTIONS ON FOREIGN INVESTMENT AND HAS NO QUALMS ABOUT THE POSSIBILITY OF 100 FOREIGN OWNERSHIP THEY'LL HAVE CONTROL OF THE BOARD AND VOTING POWER SAYS FERNANDO ILLANES DE LA RIVA MINISTER OF FINANCE AND DEVELOPMENT GOVERNMENT WILL HAVE NOTHING TO DO WITH IT ANYMORE GOVERNMENTFREE INDUSTRY IN ADDITION TO GENERATING REVENUE AND PROVIDING EVERY CITIZEN WITH A SHARE OF THE ASSETS WILL TAKE PROPERTY OUT OF THE HANDS OF CORRUPT OFFICIALS UNDER CURRENT CIRCUMSTANCES MR BAKIR CONTENDS HALF OF ANY MONEY SPENT RESTORING HIS BELOVED HOTEL UMIRI WOULD GO INTO THE POCKETS OF GOVERNMENT FUNCTIONARIES LOOK AT THE CARS THEY DRIVE MR BAKIR SAYS OF MERCEDESOWNING BUREAUCRATS IN LA PAZ AT THEIR SALARY LEVEL THEY WOULD NEED ABOUT FIVE YEARS WITHOUT EATING TO AFFORD ONE OF THOSE RECOGNIZING THAT THIS CORRUPTION IS A THREAT TO HIS RECOVERY PROGRAM THE PRESIDENT IS WAGING A MULTIFRONTED WAR ON CORRUPTION HE'S INVESTIGATING OFFICIALS THROUGHOUT THE GOVERNMENT AND SEVERAL WEEKS AGO HE RECOMMENDED THE IMPEACHMENT OF THE SUPREME COURT PRESIDENT AND SEVERAL OTHER JUDGES ON BRIBERY CHARGES AMONG OTHER BENEFITS STEMMING CORRUPTION WILL MAKE PRIVATIZED INDUSTRIES MORE ATTRACTIVE TO INVESTORS FIRST TO GO ON THE BLOCK PERHAPS AS SOON AS EARLY 1994 WILL BE ENTEL THE STATE PHONE COMPANY FOLLOWED BY THE ELECTRIC UTILITY ENDE BOLIVIA'S RAILROAD OIL COMPANY AIRLINE SMELTING FACILITIES AND OF COURSE PREFECTURAL HOTELS WILL FOLLOW TO STOKE INVESTMENT THE GOVERNMENT IS AMASSING A STACK OF REFORMS AND INCENTIVES STRICT RESERVE REQUIREMENTS AND OVERSIGHT ON WHAT WAS A FREEWHEELING AND FRAUDULENT BANKING SYSTEM A STREAMLINED TAX CODE WITH THE LOWEST OVERALL RATES ON THE CONTINENT REDUCED TARIFFS ALSO LOWEST IN THE REGION AT 5 ON CAPITAL GOODS AND ERASED RESTRICTIONS ON FOREIGN EXCHANGE AND INVESTMENT WE CALL IT INVESTMENT PERIOD SAYS MR ILLANES DE LA RIVA WE DON'T CARE WHERE IT COMES FROM WHEN LAST IN POWER IN THE MID1980S THE PRESIDENT'S PARTY INSTITUTED ONE OF THE WORLD'S MOST AUSTERE FREEMARKET REFORM PROGRAMS TO CURB RECORDBREAKING ANNUAL INFLATION OF OVER 24000 AS PLANNING MINISTER MR SANCHEZ DE LOZADA HELPED SLASH PUBLIC EXPENDITURES RAISE PRICES FOR PUBLIC SECTOR SERVICES AND PUT IN PLACE AN EXTREMELY TAUT MONETARY POLICY INFLATION IS NOW ABOUT 9 AND THROUGH VIGOROUS BUYBACK AND DEBTSWAP EFFORTS BOLIVIA HAS PAID DOWN 740 MILLION IT OWED COMMERCIAL BANKS IN 1987 TO LESS THAN 10 MILLION TODAY A HAT TRICK FUNDED BY VARIOUS GOVERNMENTS AND MULTINATIONAL ORGANIZATIONS AND BY THE ACQUIESCENCE OF BANKS WHO WROTE OFF DEBT FOR AROUND 16 CENTS ON THE DOLLAR BOLIVIA'S NEW TWIN EMPHASES ON GROWTH AND SOCIAL EQUITY REPRESENT A DRAMATIC SHIFT IN GEARS TOWARD AGGRESSIVE GROWTH ITS DUTIFUL ADHERENCE TO IMF AND WORLD BANK DEBT CONTROL AND DEFICIT REDUCTION PROGRAMS WORKED WELL ENOUGH IN COMBATING HYPERINFLATION HOWEVER WHEN BOLIVIA WAS PRIMED TO MOVE INTO A STRONG GROWTH MODE THE AUSTERITY MODEL FELL SHORT AFTER YEARS OF FALLING OUTPUT GROSS DOMESTIC PRODUCT STIRRED IN 1987 AND REACHED A MIDDLING HIGH MARK OF 41 IN 1991 BUT 1992 GDP FELL BACK TO 38 WITH A SIMILAR RATE EXPECTED THIS YEAR THE PRESIDENT AND HIS TEAM ARE CONVINCED AN INFUSION OF FOREIGN CAPITAL COMBINED WITH SUPPLYSIDE INCENTIVES FOR STRONG INTERNAL GROWTH ARE NEEDED TO BOOST THE ECONOMY OFF ITS CURRENT PLATEAU THEY EXPECT PRIVATIZATION TO PROVIDE UP TO 2 BILLION IN NEW CAPITAL FOR THE INDUSTRIES WHICH THEY HOPE WILL LEAD TO 10 GROWTH BY THE END OF GONI'S FOURYEAR TERM PRIVATIZATION DIVIDENDS WHICH COULD TAKE THE FORM OF MUTUAL FUND SHARES WILL HAVE AN ESTIMATED VALUE OF BETWEEN 1000 AND 1500 AND WILL AT LEAST DOUBLE THE ANNUAL INCOME OF MOST CITIZENS AND INCREASED INVESTMENT AND BETTER MANAGEMENT WILL EXPAND INDUSTRIES AND CREATE JOBS AT UMIRI POOR CAMPESINOS WHO LIVE NEARBY WILL ENJOY IMMEDIATE BENEFITS FROM PRIVATIZATION MR BAKIR SAYS HE AND HIS PARTNERS CAN AFFORD TO DO WHAT THE GOVERNMENT CAN'T HIRE THEM INSTEAD OF BEING SUSTAINED BY THE GOVERNMENT THIS HOTEL WOULD HAVE TO MAKE MONEY FOR ITS OWNERS IT WILL HAVE TO ATTRACT BUSINESS SAYS MR BAKIR THAT MEANS WE SPEND MONEY ON BETTER FACILITIES AND HIRE MORE WORKERS MR BAKIR'S NEXT TASK LIKE THAT OF ALL BOLIVIA IS TO CONVINCE INTERNATIONAL INVESTORS THAT HIS COUNTRY IS FINALLY READY TO PLAY IN THE WORLD ECONOMY WE ARE NOT LOOKING FOR FREE GIFTS OR EVEN CHEAP MONEY BAKIR SAYS WE ARE LOOKING FOR REAL INVESTORS WITH REAL MONEY FOR WHAT ARE NOW REAL OPPORTUNITIES MR HENDRIX IS A FREELANCE WRITER BASED IN WASHINGTON 9312170160 931217 FERC CLEARS ENTERGY MERGER NEW ORLEANS ENTERGY CORP SAID THE FEDERAL ENERGY REGULATORY COMMISSION APPROVED ITS PROPOSED MERGER WITH GULF STATES UTILITIES CO THE TRANSACTION STILL REQUIRES APPROVAL BY THE SECURITIES AND EXCHANGE COMMISSION AND THE NUCLEAR REGULATORY COMMISSION IN ADDITION THE PUBLIC UTILITY COMMISSION OF TEXAS SCHEDULED A DEC 29 MEETING TO CONSIDER THE MERGER GULF STATES UTILITIES PROVIDES ELECTRIC SERVICE IN SOUTHEAST TEXAS AND SOUTHERN LOUISIANA ENTERGY HAS OPERATIONS IN ARKANSAS LOUISIANA AND MISSISSIPPI 9312170159 931217 BANKERS TRUST SELLS ADS STAKE NEW YORK BANKERS TRUST NEW YORK CORP SAID IT SOLD ITS 49 STAKE IN CLOSELY HELD ADS ASSOCIATES TO MANAGERS OF ADS A DEVELOPER OF FINANCIAL SOFTWARE BASED IN CALABASAS CALIF TERMS WEREN'T DISCLOSED BANKERS TRUST WHICH ACQUIRED THE STAKE IN 1985 SAID IT SOLD ITS HOLDINGS AS PART OF A PRACTICE OF DIVESTING EQUITY INTERESTS THAT ARE NO LONGER REQUIRED WITHIN OUR BUSINESS STRATEGY BANKERS TRUST HAD 85 BILLION IN ASSETS AS OF SEPT 30 9312170158 931217 MANUFACTURING GAINS STRENGTH IN 3 STATES PHILADELPHIA FED SAYS PHILADELPHIA MANUFACTURING GROWTH IN EASTERN PENNSYLVANIA SOUTHERN NEW JERSEY AND DELAWARE HAS ACCELERATED OVER THE PAST THREE MONTHS ACCORDING TO THE FEDERAL RESERVE BANK OF PHILADELPHIA THE PHILADELPHIA FED'S BUSINESS OUTLOOK SURVEY FOR DECEMBER ALSO SHOWED HEALTHY GAINS IN MANUFACTURING SHIPMENTS AND NEW ORDERS EMPLOYMENT LEVELS WERE UNCHANGED AND THE AVERAGE WORKWEEK GREW LONGER PRICES REMAINED STABLE AND INDEXES THAT PROJECT MANUFACTURING ACTIVITY FOR THE NEXT SIX MONTHS REACHED THEIR HIGHEST LEVELS SINCE LAST FEBRUARY THE SURVEY'S RESULTS REFLECTED GAINS IN THE FED'S DIFFUSION INDEXES WHICH REPRESENT THE PERCENTAGE OF RESPONDENTS INDICATING AN INCREASE IN CERTAIN ACTIVITIES MINUS THE PERCENTAGE INDICATING A DECREASE THE GENERAL BUSINESS ACTIVITY DIFFUSION INDEX CLIMBED 89 TO 424 FROM 224 IN NOVEMBER CLOSE TO THE HIGHEST LEVEL IN THE 25YEAR HISTORY OF THE SURVEY OF THE MANUFACTURING COMPANIES POLLED 42 INDICATED INCREASES IN ACTIVITY IN DECEMBER NONE INDICATED A DECLINE THE SHIPMENTS INDEX SHOT UP ALMOST SEVENFOLD TO 471 THIS MONTH FROM 77 IN NOVEMBER NEW ORDERS PARALLELED THE RISE IN THE GENERAL ACTIVITY INDEX BUT THESE INCREASES HAVE BEEN ACCOMPLISHED WITH NO CHANGE IN OVERALL EMPLOYMENT ALMOST 76 OF THE MANUFACTURERS INDICATE NO CHANGE IN THE NUMBER OF WORKERS AND THE NUMBER OF COMPANIES THAT HIRED ADDITIONAL WORKERS ONLY NARROWLY OUTNUMBERED THOSE REPORTING CUTS THE AVERAGE WORKWEEK INDEX ROSE TO A PLUS 153 IN DECEMBER FROM A NEGATIVE 57 IN NOVEMBER A LARGE DECLINE IN THE INVENTORIES INDEX MAY BODE WELL FOR PRODUCTION INCREASES IN THE NEAR TERM ACCORDING TO THE FED THE INDEX DROPPED TO A NEGATIVE 102 IN DECEMBER FROM A PLUS 91 LAST MONTH MEANING THAT 10 MORE COMPANIES REPORTED LOWER INVENTORIES THAN REPORTED HIGHER INVENTORIES ALMOST 80 OF THE COMPANIES REPORTED NO CHANGE IN THE PRICES OF THEIR MANUFACTURED GOODS PRICES THEY PAID FOR GOODS AND SERVICES ALSO REMAINED STEADY INCREASED DEMAND THIS MONTH MAY LIFT FUTURE PRICES THE FED SAID BUT THE FUTURE PRICES INDEX REMAINS BELOW LEVELS RECORDED IN THE FIRST SEVERAL MONTHS OF THIS YEAR THE OVERALL DIFFUSION INDEX FOR FUTURE ACTIVITY ROSE TO 548 THIS MONTH UP 36 FROM 403 IN NOVEMBER ALMOST 65 OF THE COMPANIES SURVEYED EXPECTED INCREASED ACTIVITY THAT RISE SHOULD BE COUPLED WITH AN INCREASE IN CAPITAL EXPENDITURES ACCORDING TO THE MANUFACTUERS SURVEYED YET THE SAME COMPANIES DIDN'T EXPECT LARGE INCREASES IN THEIR EMPLOYMENT LEVELS 9312170157 931217 CREDIT MARKETS MORE THAN 14 BILLION OF JUNK BONDS COMES TO MARKET AS TREASURY YIELDS EDGE UPWARD BY JACQUELINE DOHERTY AND THOMAS D LAURICELLA SPECIAL TO THE WALL STREET JOURNAL NEW YORK A WAVE OF CORPORATE JUNKBOND DEALS CAME TO THE MARKET YESTERDAY AS TREASURY YIELDS MOVED SLIGHTLY HIGHER THE YIELD ON THE BENCHMARK 30YEAR TREASURY BOND ROSE TO 629 FROM 627 ON WEDNESDAY ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS YIELD DROPPED 1/4 POINT OR 250 FOR A BOND WITH A 1000 FACE VALUE TO 99 10/32 MORE THAN 14 BILLION OF NEW JUNK BONDS WERE SOLD YESTERDAY INCLUDING OFFERINGS FROM CANANDAIGUA WINE CO SEQUA CORP ACT III BROADCASTING INC AND ROADMASTER INDUSTRIES INC THE QUALITY OF THE OFFERINGS PROVED ONCE AGAIN THAT INVESTOR INTEREST IN HIGHER YIELDS IS OFTEN STRONGER THAN THEIR FEAR OF DEFAULT ROADMASTER INDUSTRIES FOR EXAMPLE SOLD 100 MILLION OF SENIOR SUBORDINATED 10YEAR NOTES AT PAR TO YIELD 1175 NEARLY SIX PERCENTAGE POINTS MORE THAN THE YIELD ON THE 10YEAR TREASURY NOTE THE NOTES WHICH WERE SOLD THROUGH UNDERWRITERS LED BY JEFFERIES & CO WERE RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE AND SINGLEBMINUS BY STANDARD & POOR'S THEY ARE NONCALLABLE FOR FIVE YEARS PRICES WERE MOSTLY UNCHANGED IN A QUIET JUNKBOND MARKET ACT III BROADCASTING'S 100 MILLION OFFERING OF 10YEAR SENIOR SUBORDINATED NOTES WAS REPORTEDLY OVERSUBSCRIBED AND WELL RECEIVED BY INVESTORS THE DEBT WHICH IS NONCALLABLE FOR FIVE YEARS WAS PRICED AT PAR TO YIELD 9625 ACT III'S DEBT IS ALREADY TRADING AT 101 1/4 TO YIELD 942 CANANDAIGUA WINE SOLD 130 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES TO PAY DOWN A BRIDGE LOAN USED TO PARTLY FINANCE THE 1531 MILLION ACQUISITION OF VINTNERS INTERNATIONAL CO IN OCTOBER VINTNERS OWNS TAYLOR CALIFORNIA CELLARS AND PAUL MASSON WINES THE DEBT WHICH IS NONCALLABLE FOR FIVE YEARS WAS PRICED AT PAR TO YIELD 875 THE 130 MILLION BRIDGE LOAN WAS GRANTED BY CHASE MANHATTAN BANK AND THE DEBT WAS UNDERWRITTEN BY CHASE SECURITIES THE COMPANY WAS LAST IN THE DEBT MARKETS IN 1986 MEANWHILE IN THE INVESTMENTGRADE MARKET SOUTHERN CALIFORNIA EDISON CO A UNIT OF SCE CORP HELD A COMPETITIVE BID AND CHRYSLER FINANCIAL CORP A UNIT OF CHRYSLER CORP SOLD 100 MILLION OF PAPER YIELDS ON EASTMAN KODAK CO'S DEBT CONTINUED TO RISE THIS WEEK AFTER ITS DEBT WAS DOWNGRADED LAST WEEK AND THE COMPANY'S CHAIRMAN WARNED WEDNESDAY THAT ANALYSTS' EARNINGS FORECASTS WERE HIGHER THAN COMPANY EXPECTATIONS STANDARD & POOR'S LOWERED THE RATINGS ON ABOUT 7 BILLION OF THE COMPANY'S DEBT KODAK'S SENIOR DEBT WAS LOWERED TO TRIPLEBPLUS FROM SINGLEAMINUS AND THE SUBORDINATED DEBT WAS LOWERED TO TRIPLEB FROM TRIPLEBPLUS THE SPREAD ON KODAK'S 975 COUPON NOTES MATURING IN 2004 HAS WIDENED BY 01 PERCENTAGE POINT OVER TREASURYS IN THE LAST WEEK THE PRICE ON THE DEBT HAS DROPPED BY 091 POINT OR 910 FOR A BOND WITH A 1000 FACE VALUE TO 12347 THE YIELD HAS RISEN TO 666 FROM 656 ONE TRADER QUOTED WHILE MOST MUNICIPALDEBT ISSUERS TOOK A BREATHER AFTER SELLING MORE THAN 3 BILLION OF SECURITIES EARLIER THIS WEEK ANOTHER NEW YORK STATE AUTHORITY PRESSED AHEAD WITH A DEBT SALE YESTERDAY THE NEW YORK STATE URBAN DEVELOPMENT CORP'S 216 MILLION SERIES 4 CORRECTIONAL CAPITAL FACILITIES REFUNDING BONDS WERE BROUGHT TO THE MARKET BY A MERRILL LYNCH GROUP FOLLOWING A REPRICING AT WHICH SEVERAL YIELDS WERE RAISED AS MUCH AS FIVE BASIS POINTS AND ONE WAS LOWERED FIVE BASIS POINTS YIELDS RANGE FROM 35 IN 1995 TO 579 IN 2023 MOODY'S INVESTORS SERVICE RATED THE BONDS BAA1 STANDARD & POOR'S HAS ASSIGNED A TRIPLEB RATING AND FITCH INVESTORS ASSIGNED A SINGLEA RATING NEW YORK STATE AUTHORITIES ACCOUNTED FOR MORE THAN 15 BILLION OF THIS WEEK'S NEW SUPPLY THE DORMITORY AUTHORITY AND THE THRUWAY AUTHORITY SOLD A TOTAL OF ABOUT 620 MILLION BONDS AND THE WEEK'S LARGEST ISSUE WAS THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY'S 7559 MILLION 1993 SERIES F REFUNDING BONDS NEW YORK STATE'S COMPTROLLER HAD SOME GOOD NEWS ABOUT NOVEMBER'S CASH REPORT HE SAID NOVEMBER'S TOTAL GENERALFUND RECEIPTS WERE 249 MILLION HIGHER THAN WHAT WAS PROJECTED IN GOV MARIO CUOMO'S LATEOCTOBER UPDATE THE STATE'S TOTAL RECEIPTS WERE ABOUT 1944 BILLION LAST MONTH COMPARED WITH AN ESTIMATED 1919 BILLION RECEIPT LEVEL IN LATE OCTOBER MORTGAGE SECURITIES ENDED FIRM AND OUTPERFORMED TREASURYS YESTERDAY JUST ONE NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT OFFERING WAS ANNOUNCED FEDERAL HOME LOAN MORTGAGE CORP SERIES GOLD 1661 BACKED BY THE AGENCY'S GOLD 15YEAR 65S STARTED THE DAY AT 600 MILLION AND WAS RAISED BY LEHMAN BROTHERS TO 15 BILLION DESPITE THIS WEEK'S RELATIVE SHORTAGE OF NEW REMIC TRANSACTIONS HOWEVER MORTGAGE SECURITIES COLLATERAL PRICES OUTPACED TREASURYS AND ARE EXPECTED TO CONTINUE TO DO SO THROUGH EARLY NEXT YEAR THE CURRENT TREND IS SIMILAR TO THE FOURTH QUARTER OF 1992 SAYS DEEPAK NARULA VICE PRESIDENT OF THE MORTGAGE STRATEGIES GROUP AT LEHMAN BROTHERS HE SAID OUR BIGGEST BET NOW IS THAT CURRENT COUPON YIELD SPREADS OF MORTGAGES ABOVE TREASURYS WILL TIGHTEN 10 TO 15 BASIS POINTS WITHIN THE NEXT MONTH AS MORTGAGE SECURITIES OUTPERFORM TREASURYS THE REASON IS THAT DEALERS ARE ANTICIPATING THE REMIC MACHINE WILL PICK UP IN THE FIRST QUARTER OF 1994 AMID REINVESTMENT DEMAND FROM ACCOUNTS RECEIVING PREPAYMENT CASH FLOWS THERE HAS BEEN OUTRIGHT BUYING OF MORTGAGE PASSTHROUGHS BY PLAYERS EXPECTING STEPPEDUP REMIC PRODUCTION WHICH THEY SEE BOOSTING PRICES MR NARULA SAID AMONG THOSE 65S GINNIE MAES STOOD AT 98 27/32 FREDDIE MAC GOLDS ENDED AT 99 1/32 AND FANNIE MAES TRADED AT 98 28/32 CONFRONTED BY MORE EVIDENCE OF A FROTHY FOURTHQUARTER ECONOMY PRICES OF US TREASURY SECURITIES MATURING IN MORE THAN FIVE YEARS ENDED SLIGHTLY LOWER YESTERDAY THE 10YEAR NOTE FOR EXAMPLE DROPPED ABOUT 2/32 TO 99 17/32 FOR A YIELD OF 58 COMPARED WITH 579 IN A CARRYOVER FROM WEDNESDAY'S SESSION BOND PRICES HEADED SLIGHTLY HIGHER EARLY YESTERDAY THE COMMERCE DEPARTMENT REPORTED THAT A SURGE IN EXPORTS AND IMPORTS DURING OCTOBER PRODUCED A SLIGHT NARROWING OF THE TRADE DEFICIT TO 1046 BILLION INITIAL JOBLESS CLAIMS MEANWHILE FELL 7000 TO 330000 FOR THE WEEK ENDED DEC 11 BOND TRADERS IGNORED BOTH REPORTS BUT FOUND IT HARDER TO SHRUG OFF A SURPRISINGLY STRONG REPORT FROM THE FEDERAL RESERVE BANK OF PHILADELPHIA ON THE AREA ECONOMY THE PHILADELPHIA FED'S BUSINESS ACTIVITY INDEX SURGED TO 424 DURING DECEMBER FROM 224 IN NOVEMBER THE THIRD CONSECUTIVE MONTH OF SIZEABLE GAINS IT WAS A STRONG NUMBER UNQUESTIONABLY STRONG SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC IT SHOWED STRONG GROWTH IN THE PHILADELPHIA DISTRICT WHICH MAY OR MAY NOT CARRY OVER INTO THE REST OF THE COUNTRY BUT YOU PROBABLY WILL SEE SOME STRENGTH AROUND THE COUNTY JUST NOT TO THE SAME EXTENT IN RESPONSE TO THE REPORT BOND PRICES GAVE UP THEIR EARLY GAINS AND HEADED INTO NEGATIVE TERRITORY THE PHILLY FED REPORT WAS WHAT SET THE SELLING OFF THE MARKET WAS DOING A LITTLE BIT BETTER WHEN IT CAME OUT SAID MR FINE MARKET WATCHERS SAID THAT GIVEN THE STRENGTH OF THE REPORT THE DAMAGE TO THE MARKET COULD HAVE BEEN MUCH WORSE I WAS SURPRISED ABOUT HOW WELL THE MARKET TOOK THE PHILADELPHIA FED REPORT SAID CARY LEAHEY SENIOR FINANCIAL MARKET ECONOMIST AT LEHMAN GOVERNMENT SECURITIES THE MARKET MANAGED TO CREEP UP FROM ITS WORST LEVELS BY MIDAFTERNOON ONLY TO BE SENT BACK TO THE LOWS IN RESPONSE TO NEWS OF A BIG JUMP IN THE NATION'S MONEYSUPPLY MEASURES THE FEDERAL RESERVE REPORTED M2 ROSE 111 BILLION WHILE M1 GAINED 65 BILLION 9312170156 931217 BUSINESS BRIEF COLUMBIA GAS SYSTEM INC BOARD CLEARS SPENDING PLAN FOR 1994 CAPITAL PROJECTS DIRECTORS OF COLUMBIA GAS SYSTEM INC WILMINGTON DEL APPROVED A 490 MILLION CAPITALEXPENDITURE PROGRAM FOR 1994 THE DIRECTORS ALSO APPROVED ABOUT 64 MILLION IN PROJECTS CARRIED OVER FROM 1993 OR DEFERRED FROM EARLIER YEARS THE NATURALGAS SYSTEMS COMPANY SAID THE 1994 SPENDING WILL INCLUDE 110 MILLION FOR OIL AND GAS EXPLORATION 196 MILLION FOR TRANSMISSIONS OPERATIONS 163 MILLION FOR GASDISTRIBUTION PROJECTS AND 21 MILLION FOR OTHER PROJECTS COLUMBIA ESTIMATED ITS 1993 CAPITAL EXPENDITURES AT 375 MILLION DOWN FROM THE ORIGINAL PROJECTION OF 407 MILLION 9312170155 931217 BIG THREE CAR MAKERS PLAN OVERTIME EFFORTS AT A VARIETY OF PLANTS DETROIT GENERAL MOTORS CORP SAID IT PLANS OVERTIME NEXT WEEK AT FIVE CAR AND THREE TRUCK ASSEMBLY PLANTS IN THE US FORD MOTOR CO HAS SCHEDULED DAILY OVERTIME AT ALL ITS US ASSEMBLY PLANTS THIS WEEK EXCEPT AT ITS WIXOM AND WAYNE MICH PLANTS IN ADDITION FORD SAID ITS ASSEMBLY PLANTS IN DEARBORN MICH LOUISVILLE KY AND KANSAS CITY KAN ARE SCHEDULED FOR OVERTIME TOMORROW CHRYSLER CORP SAID IT PLANS OVERTIME BOTH TOMMOROW AND SUNDAY AT ITS ST LOUIS MINIVAN ASSEMBLY PLANT AND ITS BRAMALEA ONTARIO ASSEMBLY PLANT THAT BUILDS THE CHRYSLER LH MODELS IN ADDITION CHRYSLER SAID IT WILL OPERATE OVERTIME TOMMOROW AND NEXT WEEK AT ASSEMBLY PLANTS IN DETROIT WARREN AND STERLING HEIGHTS MICH ASSEMBLY PLANTS IN NEWARK NJ AND TOLEDO OHIO ARE SCHEDULED FOR OVERTIME TOMORROW ONLY BEGINNING NEXT FRIDAY THE AUTO MAKERS WILL BE CLOSED UNTIL JAN 3 FOR THE TRADITIONAL CHRISTMAS PLANT SHUTDOWN THE TEN DOMESTIC AUTO MAKERS SAID THEY PLAN TO BUILD 254832 CARS AND TRUCKS THIS WEEK COMPARED WITH 130290 VEHICLES BUILT IN THE SAME PERIOD A YEAR EARLIER THE YEAREARLIER PERIOD INCLUDED A SHORTENED HOLIDAY WEEK 9312170154 931217 TECHNOLOGY ROUTINE EPISIOTOMIES OFFER LITTLE BENEFIT LONDON REUTER ROUTINE EPISIOTOMIES PERFORMED TO EASE LABOR AND TO PREVENT ANY BIRTH RUPTURES OFFER LITTLE BENEFIT AND SHOULD BE ABANDONED ARGENTINE RESEARCHERS SAID AN EPISIOTOMY OR CUT IN THE AREA BETWEEN THE VULVA AND ANUS IS ONE OF THE MOST COMMON SURGICAL PROCEDURES IN WESTERN MEDICINE AND IS CARRIED OUT IN MORE THAN 60 OF ALL ROUTINE PREGNANCIES IN THE US THE TEAM REPORTED IN THE LANCET THE BRITISH MEDICAL JOURNAL ADVOCATES OF THE TECHNIQUE SAY IT HELPS TO AVOID A SEVERE TEAR THAT WOULD BE HARDER TO STITCH AND SLOWER TO HEAL THAN A CLEAN CUT BUT A COMPARATIVE TWOYEAR STUDY INVOLVING 2606 WOMEN AT HOSPITALS WHERE EPISIOTOMY WAS ROUTINE AND OTHERS WHERE IT WAS DONE SELECTIVELY SHOWED NO REAL BENEFIT IN AUTOMATICALLY USING THE PROCEDURE THE ARGENTINE RESEARCHERS FOUND THAT THE ROUTINE EPISIOTOMY COULD REDUCE VERY MINOR RUPTURES BUT THERE WAS NO DIFFERENCE IN THE RATE OF SEVERE TEARING AND THOSE WOMEN WHO UNDERWENT ROUTINE CUTS WERE MORE LIKELY TO SUFFER PAIN AND HAVE HEALING PROBLEMS IN THE SELECTIVE GROUP WHERE EPISIOTOMY WAS ORDERED FOR EXAMPLE WHEN A TEAR APPEARED IMMINENT OR THE BABY WAS IN DISTRESS THE INCISIONS WERE MADE IN ABOUT 30 OF CASES THE STUDY WAS CARRIED OUT BETWEEN 1990 AND 1992 IN EIGHT PUBLIC HOSPITALS IN ARGENTINA 9312170153 931217 ENTERPRISE FOCUS ON FRANCHISING FRANCHISES FARE WORSE THAN OTHER STARTUPS STUDY SAYS BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL NEW FRANCHISES ARE RISKIER THAN OTHER STARTUPS A STUDY SUGGESTS FRANCHISING HAS BOOMED IN PART BECAUSE FRANCHISEES SUPPOSEDLY RUN A MUCH LOWER RISK OF EARLY FAILURE THAN COMPLETELY INDEPENDENT BUSINESSES BUT THE DEATH RATE FOR FRANCHISES IS ACTUALLY HIGHER ACCORDING TO A STUDY BY ECONOMIST TIMOTHY M BATES HE IS A FELLOW AT THE WOODROW WILSON INTERNATIONAL CENTER FOR SCHOLARS A THINK TANK IN WASHINGTON DC DR BATES'S REPORT IS CERTAIN TO REVIVE A LONGRUNNING DEBATE BETWEEN FRANCHISERS AND THEIR CRITICS OVER FRANCHISEFAILURE RATES BOTH SIDES HAVE LACKED RIGOROUS STATISTICS DR BATES OUTLINED HIS RESEARCH IN A NEWSLETTER PUBLISHED THIS WEEK BY THE ENTREPRENEURIAL GROWTH AND INVESTMENT INSTITUTE A NONPROFIT WASHINGTON GROUP COMMITTED TO INCREASING MINORITIES' ECONOMIC PARTICIPATION THE ECONOMIST ANALYZED CENSUS BUREAU DATA ON NEARLY 7300 SMALL BUSINESSES INCLUDING MORE THAN 400 FRANCHISES WHICH STARTED FROM 1984 AND 1987 NEW FRANCHISES GENERALLY HAVE HIGHER SALES AND GREATER CAPITALIZATION THAN OTHER STARTUPS DR BATES FOUND EVEN SO THE FRANCHISEES LAG BEHIND OTHER YOUNG FIRMS IN PROFITABILITY AND RATES OF SURVIVAL HE CONCLUDED BY LATE 1991 NEARLY 35 OF THE FRANCHISES STUDIED HAD GONE OUT OF BUSINESS COMPARED WITH 28 OF NONFRANCHISE BUSINESSES IN ADDITION 6 OF THE FRANCHISEES AND 5 OF THE NONFRANCHISE OWNERS HAD SOLD THEIR BUSINESSES MOREOVER SURVIVING FRANCHISES HAD LOWER EARNINGS THAN DID NONFRANCHISE FIRMS FOR EXAMPLE 1987 PRETAX EARNINGS REPORTED BY THREEYEAROLD AND FOURYEAROLD FRANCHISES AVERAGED ONLY 14894 COMPARED WITH 26636 FOR NONFRANCHISE BUSINESSES OF THE SAME AGE DR BATES FOUND WHY DID FRANCHISEES FARE WORSE PERHAPS FRANCHISE BUYERS ARE PARTICULARLY POORLY SUITED FOR SELFEMPLOYMENT DR BATES WROTE BUT HE CONCEDED THAT CENSUS BUREAU DATA DON'T CONFIRM THAT THEORY HE OFFERED ANOTHER POSSIBILITY FRANCHISING'S BENEFITS MAY BE OUTWEIGHED BY ITS COSTS ESPECIALLY IN SATURATED MARKETS A SPOKESMAN FOR THE INTERNATIONAL FRANCHISE ASSOCIATION A FRANCHISER TRADE GROUP SAYS NO EXACT FAILURE RATE FOR FRANCHISING EXISTS FAXED A COPY OF THE NEWSLETTER YESTERDAY AN IFA SPOKESMAN CALLED DR BATES'S SAMPLE TOO SMALL AND CLAIMED TO SEE OTHER SIGNS OF FAIRLY SHODDY RESEARCH FRANCHISERS LONG HAVE ARGUED THAT THEY OFFER AN EDGE PROVEN BUSINESS FORMATS FRANCHISE SYSTEMS ALSO BOAST OF PURCHASING POWER AND MARKETING CLOUT DR BATES IS SEEKING SMALL BUSINESS ADMINISTRATION FUNDING FOR A BROADER STUDY OF SURVIVAL PATTERNS AND PROFITABILITY IN FRANCHISING A DISSIDENT FRANCHISEE COMPLAINS OF RETALIATION BY TACO BELL THE IRVINE CALIF UNIT OF PEPSICO INC HAS DENIED EXPANSION OPPORTUNITIES TO AT LEAST FOUR FRANCHISEES BECAUSE OF THEIR ROLES IN AN ACTIVIST GROUP FRANCHISEE DARRELL DUNAFON CHARGES IN A SUIT HE FILED LAST MONTH IN FEDERAL COURT IN JEFFERSON CITY MO THE PLAINTIFF SEEKS DAMAGES FOR ACTIONS THAT TACO BELL ALLEGEDLY TOOK AGAINST HIM MR DUNAFON'S MISSOURI MEXICAN PRODUCTS INC IN JEFFERSON CITY OWNS NINE TACO BELL UNITS IN MISSOURI LAST JULY HE BOUGHT LAND IN HOLTS SUMMIT FOR A TENTH BUT MR DUNAFON SAYS TACO BELL REFUSES TO APPROVE THAT SITE OR ANY OTHERS EVEN THOUGH HIS OPERATIONS AND FINANCES ARE SOUND THE REASON THE SUIT ALLEGES IS THAT MR DUNAFON LAST MAY BECAME CHAIRMAN OF THE EXECUTIVE COMMITTEE OF THE INTERNATIONAL ASSOCIATION OF TACO BELL FRANCHISEES THE NEARLY TWOYEAROLD INDEPENDENT GROUP CLAIMS TO REPRESENT ABOUT 240 FRANCHISEES AMONG OTHER THINGS IT PLANS TO FIGHT ALLEGED ENCROACHMENT PROBLEMS WITHIN THE CHAIN BUT TACO BELL HAS REFUSED EVEN TO MEET WITH THE GROUP MR DUNAFON SAYS THE SUIT NAMES THREE OTHER ACTIVIST FRANCHISEES RON BELLAMY IN WICHITA FALLS TEXAS AND WALLACE AND CHRIS FOWLER IN JONESBOROUGH ARK THAT IT ALLEGES HAVE ALSO BEEN TARGETS OF TACO BELL REPRISALS THE SUIT CLAIMS JOHN E MARTIN TACO BELL'S CHIEF EXECUTIVE OFFICER HAS REPEATEDLY CALLED THE ASSOCIATION'S LEADERSHIP RENEGADES AND SCUM A TACO BELL SPOKESMAN SAYS WE EXPECT TO PREVAIL ON THE MERITS OF THIS LAWSUIT AND WE WILL VIGOROUSLY DEFEND OURSELVES BUT THE SPOKESMAN DECLINES TO DISCUSS SPECIFIC CHARGES WE DON'T LITIGATE IN THE MEDIA AND WE DON'T AIR OUR BUSINESS ISSUES THERE EITHER HE SAYS A MEDIATION PROGRAM CLAIMS AN ASTONISHING 100 SUCCESS RATE SO FAR THE SOCALLED NATIONAL FRANCHISE MEDIATION PROGRAM SAYS IT HAS RESOLVED MORE THAN 20 DISPUTES BETWEEN FRANCHISERS AND FRANCHISEES ELEVEN FRANCHISERS STARTED THE PROGRAM IN MAY WITH HELP FROM THE CENTER FOR PUBLIC RESOURCES A NEW YORK GROUP THAT PUSHES LITIGATION ALTERNATIVES MEMBERSHIP HAS SINCE CLIMBED TO 20 FRANCHISERS THEY WANT TO USE NEGOTIATION THROUGH MEDIATORS IF NECESSARY TO SETTLE DISPUTES OVER ENCROACHMENT FRANCHISE TERMINATIONS AND OTHER ISSUES UNLIKE ARBITRATION MEDIATION ISN'T BINDING THE NEW PROGRAM WHICH THE INTERNATIONAL FRANCHISE ASSOCIATION ENDORSES HAS PROVED THAT IT CAN RESOLVE DISPUTES IN A PROMPT AND ECONOMICAL FASHION FIVE FRANCHISER EXECUTIVES SAY IN A LETTER SEEKING MORE PROGRAM MEMBERS THE EXECUTIVES COME FROM HARDEE'S FOOD SYSTEMS A UNIT OF IMASCO LTD HOLIDAY INN WORLDWIDE A UNIT OF BASS PLC MCDONALD'S CORP PEPSICO'S PIZZA HUT UNIT AND WENDY'S INTERNATIONAL INC WE ARE BUILDING WHAT WE HOPE WILL BE THE INDUSTRY NORM IN DISPUTE RESOLUTION SAYS CLAY SMALL GENERAL COUNSEL OF PIZZA HUT HE HEADS THE PROGRAM'S STEERING COMMITTEE PUPPY HUT FRANCHISING INC IN TOLEDO OHIO IS SEEKING TO FRANCHISE DRIVETHROUGH UNITS THAT SERVE ONLY PET FOOD THE COMPANY ALREADY OPERATES A TOLEDO OUTLET WHERE PEOPLE CAN BRING THEIR PETS FOR BISCUITS THAT RESEMBLE PIZZA FRIED CHICKEN AND OTHER FOOD THE OUTLET'S PARK AND BARK PICNIC AREA FEATURES A FIRE HYDRANT RESTROOM ALSO THE OWNERS SAY THEY CATER PARTIES FOR OBEDIENCESCHOOL GRADUATIONS AND OTHER OCCASIONS BRIEFS FRANCHISER MANHATTAN BAGEL CO IN EATONTOWN NJ NOW TESTING THE WATERS FOR A SELFUNDERWRITTEN INITIAL PUBLIC OFFERING SAYS IT PLANS TO HOLD INSTORE DRAWINGS ONE LUCKY CUSTOMER AT EACH OF 28 STORES CAN WIN 100 FREE SHARES PROFORMA INC A CLEVELAND COMPANY WITH INTERESTS IN BUSINESS FORMS AND COMMERCIAL PRINTING SAYS FRED DELUCA FOUNDER OF THE HUGE SUBWAY CHAIN HAS BECOME AN INVESTOR IN A JOINT VENTURE THAT WILL TAKE OVER PROFORMA'S FRANCHISING OPERATIONS 9312170152 931217 CORPORATE FOCUS BEST BUY RIDES HIGH WITH LOWKEY SALES APPROACH CONSUMERELECTRONICS CHAIN VIES FOR MARKETS WITH MORETRADITIONAL RIVAL BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL CONSUMERELECTRONICS RETAILER BEST BUY CO DOESN'T WANT TO BE KNOWN FOR SERVICE THAT'S UNUSUAL IN AN INDUSTRY WHERE CRAZY EDDIE AND TV LENNY MADE INYOURFACE SALESMANSHIP THE NORM BUT MINNEAPOLISBASED BEST BUY HAS BECOME ROARINGLY SUCCESSFUL WITH ITS HANDSOFF SELFSERVICE FORMAT FOR SELLING BARGAINPRICED STEREOS TELEVISIONS AND COMPUTERS WE DON'T HAVE TO TEACH OUR PEOPLE THE SEVEN STEPS OF SELLING PRESIDENT BRADBURY H ANDERSON SAYS SALESCLERKS ARE THERE TO ASSIST THE CUSTOMER AND NOT TO MANIPULATE THE CUSTOMER ITS STRATEGY CERTAINLY SEEMS TO BE WORKING ANALYSTS SAY THE COMPANY'S FISCAL 1994 SALES ARE ON TRACK TO REACH 276 BILLION FAR OUTSTRIPPING THE 162 BILLION IN SALES ACHIEVED LAST YEAR BEST BUY ALSO APPEARS ON TARGET TO POST NET INCOME OF 40 MILLION OR 190 A SHARE DOUBLE LAST YEAR'S 199 MILLION OR 114 A SHARE ANALYSTS ADD YESTERDAY THE COMPANY REPORTED SLIGHTLY HIGHERTHANEXPECTED FISCAL THIRDQUARTER EARNINGS OF 112 MILLION OR 52 CENTS A SHARE ON SALES OF 8085 MILLION STILL BEFORE ITS FISCAL YEAR ENDS FEB 28 BEST BUY MUST ADDRESS SKEPTICS WHO AREN'T CONVINCED THE COMPANY'S SOFT TOUCH WITH CUSTOMERS WILL SUPPORT ITS AGGRESSIVE EXPANSION PLANS THE SKEPTICS ALSO WONDER WHETHER BEST BUY THE NO 2 ELECTRONICS SPECIALTY CHAIN WILL SUSTAIN SERIOUS DAMAGE IN ITS LOOMING BATTLE WITH INDUSTRY LEADER CIRCUIT CITY STORES INC CIRCUIT CITY ISN'T THE ONLY THREAT TO BEST BUY'S VIGOROUS EXPANSION SEARS ROEBUCK & CO MONTGOMERY WARD & CO WALMART STORES INC AND DAYTON HUDSON CORP'S TARGET DIVISION ALL ARE SHARPENING THEIR FOCUS ON CONSUMER ELECTRONICS SUCH MASS SELLERS HAVE STRUCK A VEIN OF CONSUMER SUPPORT AMID AN INDUSTRY SHAKEOUT THAT HAS FORCED SEVERAL BIG PLAYERS INCLUDING HIGHLAND SUPERSTORES INC AND NEWMARK & LEWIS INC INTO CHAPTER 11 BANKRUPTCY PROCEEDINGS THE 10 LARGEST CONSUMERELECTRONICS RETAILERS HAVE BOOSTED THEIR SHARE OF THE 50 BILLIONAYEAR MARKET TO 50 FROM 33 IN 1985 GOLDMAN SACHS & CO SAYS BUT THE FASTESTGROWING ENTITIES HAVE BEEN BEST BUY AND CIRCUIT CITY WHICH IS BASED IN RICHMOND VA UNTIL RECENTLY THE TWO COMPETED ONLY IN MARKETS THAT CONTRIBUTED ABOUT 25 OF BEST BUY'S SALES BUT THIS YEAR THAT FIGURE CLIMBED TO 40 AS CIRCUIT CITY ENTERED THE CHICAGO MARKET AND BEST BUY MOVED INTO ATLANTA AND PHOENIX IN 1994 CIRCUIT CITY FORAYS INTO MINNEAPOLIS AND KANSAS CITY MO WILL MEAN THAT THE TWO COMPANIES WILL COMPETE IN MARKETS PROVIDING 55 OF BEST BUY'S SALES BEST BUY PLANS TO ADD 40 STORES A YEAR CIRCUIT CITY JUST ACCELERATED ITS EXPANSION PLAN SAYING IT WILL ADD 180 SUPERSTORES AND 20 SMALLER STORES OVER THE NEXT THREE YEARS CIRCUIT CITY PREDICTS ITS TRADITIONAL FULLSERVICE FORMAT WILL PREVAIL MORE CONSUMERS WILL FIND OUR FORMAT MORE ATTRACTIVE THAN ANY OTHER FORMAT CONTENDS RICHARD L SHARP CHIEF EXECUTIVE OFFICER WORRIES OVER A PROFITDAMAGING PRICE WAR WITH CIRCUIT CITY HAS HURT BEST BUY'S STOCK WHICH WAS THE NEW YORK STOCK EXCHANGE'S TOP PERFORMER IN THE THIRDQUARTER AFTER SOARING TO 62 A SHARE IN EARLY NOVEMBER FROM 22 IN JANUARY THE STOCK RETREATED IN MIDNOVEMBER AFTER THE COMPANY ACKNOWLEDGED IT WILL BE DIFFICULT TO MATCH ITS STRONG OCTOBER SALES GROWTH OF MORE THAN 20 IN THE FUTURE BEST BUY'S STOCK HAS RECOVERED SOMEWHAT SINCE THEN CLOSING YESTERDAY AT 44 UP 125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CIRCUIT CITY'S STOCK ALSO HAS BEEN STUNG BY CONCERNS OVER COMPETITION DESPITE STRONG EARNINGS CLOSING YESTERDAY AT 2050 COMPARED WITH A HIGH OF 52375 IN JANUARY EARLIER THIS WEEK CIRCUIT CITY SAID NET INCOME FOR THE NINE MONTHS ENDED NOV 30 ROSE 31 TO 647 MILLION OR 66 CENTS A SHARE FROM 495 MILLION OR 51 CENTS A SHARE A YEAR EARLIER THE EXCITEMENT OVER BEST BUY COMES FOUR YEARS AFTER THE COMPANY PUT INTO PLACE ITS SOCALLED CONCEPT II STRATEGY WHICH TRANSFORMED ITS STORES FROM UNDISTINGUISHED PURVEYORS OF STEREOS AND TELEVISION SETS INTO OPERATIONS AS BIG AS DISCOUNT WAREHOUSES BUT WITH A WARM CLEAN FEEL THE NEW STORES EACH WITH ABOUT 36000 SQUARE FEET OF SELLING SPACE ARE TWICE THE SIZE OF THE PRECONCEPT II STORES AND MUCH LARGER THAN THAT OF THE AVERAGE COMPETITOR FROM THE FRONT DOOR EVERY STORE DEPARTMENT IS VISIBLE AND ACCESSIBLE ON WIDE TILED AISLES BUT UNLIKE CIRCUIT CITY AND OTHER ELECTRONICS STORES NEARLY ALL AVAILABLE MERCHANDISE SITS ON BIG METAL SHELVES ABOVE OR BELOW THE DISPLAY MODELS BEST BUY DOESN'T PAY ITS STAFF A COMMISSION ON SALES UNLIKE MOST OF ITS COMPETITORS INCLUDING CIRCUIT CITY BEST BUY OFFICIALS CLAIM SUCH COMMISSIONS LEAD TO SELLING CONSUMERS MERCHANDISE THEY DON'T NEED HURTING REPEAT BUSINESS ALSO SALES CLERKS DON'T TRY TO SELL THE CUSTOMER AN EXTENDED WARRANTY RESULTS OF THE CONCEPT II STRATEGY HAVE BEEN POSITIVE AVERAGE SALES PER STORE COULD REACH 22 MILLION THIS YEAR UP MORE THAN 80 FROM 122 MILLION IN 1989 THAT PERSTORE FIGURE EXCEEDS OTHER CONSUMERELECTRONICS CHAINS ESPECIALLY CIRCUIT CITY WHICH ANALYSTS ESTIMATE LOGS AN AVERAGE OF 16 MILLION IN SALES PER STORE BEST BUY'S RETAILING CONCEPT IN CONSUMER ELECTRONICS IS PROBABLY THE MOST EXCITING AND THE MOST ACCEPTABLE IN THE INDUSTRY SAYS SAUL YAARI AN ANALYST WITH PIPER JAFFRAY COS IN MINNEAPOLIS BUT MR YAARI AMONG OTHERS WORRIES THAT CIRCUIT CITY COULD SLOW BEST BUY'S GROWTH CIRCUIT CITY'S SALES WHICH WERE 327 BILLION IN FISCAL 1993 ARE HIGHER THAN BEST BUY'S BECAUSE CIRCUIT CITY HAS MORE STORES IT IS ENTRENCHED IN MARKETS BEST BUY INTENDS TO ENTER AND IT PLANS TO EXPAND INTO SEVERAL BEST BUY STRONGHOLDS IN A SHOWDOWN CIRCUIT CITY HAS MORE LATITUDE TO CUT PRICES THAN BEST BUY MR YAARI MAINTAINS HE ESTIMATES THAT EXTENDEDSERVICE AGREEMENTS CIRCUIT CITY SELLS CUSTOMERS ACCOUNT FOR ABOUT 75 OF THE COMPANY'S PROFIT GIVING IT A BIG CUSHION TO CUT PRICES CONVERSELY BEST BUY DOESN'T HAVE ROOM TO CUT PRICES MUCH BECAUSE IT CHARGES FAR LESS FOR EXTENDED WARRANTIES AND DERIVES ONLY AN ESTIMATED 25 OF ITS PROFIT FROM THE CONTRACTS SUCH WARRANTIES TYPICALLY FOR FIVE YEARS ARE PROFITABLE TO RETAILERS BECAUSE MOST PROBLEMS WITH CONSUMER ELECTRONICS AND APPLIANCES USUALLY OCCUR IN THE FIRST YEAR WHEN THE MANUFACTURER'S WARRANTY OFTEN IS IN PLACE OR AFTER THE FIFTH YEAR WHEN THE EXTENDED WARRANTY HAS EXPIRED ALTHOUGH THEIR COMPETITION IS HEATING UP IT NEEDN'T BE DEVASTATING TO EITHER CIRCUIT CITY OR BEST BUY SOME INDUSTRY OBSERVERS DECLARE THERE IS ROOM FOR BOTH OF THEM SAYS MARTIN BROCHSTEIN SENIOR EDITOR OF TELEVISION DIGEST AN INDUSTRY TRADE PUBLICATION 9312170151 931217 BRITISH PETROLEUM SAYS IT'S WELL AHEAD OF GOALS FOR COST AND DEBT REDUCTIONS BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL BRITISH PETROLEUM CO CHAIRMAN DAVID SIMON SAID THE COMPANY IS EXCEEDING COSTCUTTING AND DEBTREDUCTION GOALS IN THE MASSIVE RESTRUCTURING IT BEGAN IN 1992 MR SIMON SAID THE BRITISH COMPANY HAD EXPECTED TO REDUCE COSTS BY 1 BILLION BY 1996 HOWEVER THIS YEAR ALONE COSTS HAVE BEEN SLASHED BY 700 MILLION WITH MORE THAN HALF OF THE REDUCTIONS COMING FROM THE REFINING AND MARKETING SECTOR WE'RE ALREADY TWOTHIRDS OF THE WAY TO OUR TARGET MR SIMON SAID WE SHOULD HIT OUR GOAL BY MID1994 HE SAID HE WOULD LAUNCH ANOTHER 1 BILLION COSTCUTTING EFFORT AS SOON AS THE FIRST ROUND IS COMPLETED LARGELY BECAUSE OF COST REDUCTIONS BP HAS BEEN ABLE TO AGGRESSIVELY PAY DOWN ITS DEBT BP HAD EXPECTED TO LOWER ITS DEBT BY 1 BILLION OVER THE LAST YEAR BUT IN JUST THE PAST 15 MONTHS THE COMPANY HAS REDUCED ITS DEBT BY 32 BILLION TO ABOUT 131 BILLION IT'S AIMING TO REDUCE DEBT ULTIMATELY TO 10 BILLION TO ACHIEVE A 35 RATIO OF DEBT TO DEBTPLUSEQUITY BP ALSO SAYS IT WILL HAVE SOLD 28 BILLION OF ASSETS AND EXPECTS TO SELL ANOTHER 15 BILLION IN ASSETS NEXT YEAR AS WELL NEXT YEAR'S SALES SHOULD INCLUDE THE EUROPEAN SECTOR OF ITS NUTRITION BUSINESS AND SOME REFINING AND MARKETING ASSETS BP IS DOING A GREAT JOB SAID JAMES MURCHIE OIL ANALYST FOR SANFORD C BERNSTEIN IN NEW YORK AND A FORMER BP EXECUTIVE BEFORE MR SIMON TOOK OVER IN 1992 ANALYSTS SAID THE COMPANY WAS OVERZEALOUS IN EXPANDING SINCE THE MIDDLE OF 1992 US OWERSHIP OF THE STOCK HAS JUMPED FROM 75 OF SHARES OUTSTANDING TO 27 INDEED THE PRICE OF BP'S AMERICAN DEPOSITARY RECEIPTS ROSE 2 TO 6075 ON THE NEW YORK STOCK EXCHANGE AS THE NEWS TRICKLED THROUGH THE INVESTMENT COMMUNITY ALTHOUGH MR SIMON DECLINED TO DISCUSS EARNINGS OIL ANALYSTS PROJECT THAT BP THIS YEAR WILL EARN ABOUT 15 BILLION OR 335 A SHARE LAST YEAR THE COMPANY EARNED 949 MILLION IN REPLACEMENTCOST PROFIT OR 216 A SHARE THAT FIGURE EXCLUDES BP'S OIL INVENTORIES MR SIMON SAID THE RECENT SHARP DROP IN OIL PRICES COULD REDUCE PROFITABILITY SOMEWHAT BUT IF OIL PRICES REMAIN WEAK THE COMPANY WILL PRESS EVEN HARDER ON THE COSTCUTTING FRONT AND MR SIMON SAID BP A MAJOR PRODUCER OF NORTH SEA OIL HAS NO INTENTION OF CUTTING BACK PRODUCTION THERE DESPITE A PLEA FROM THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES INDEED MR SIMON EXPECTS NORTH SEA OIL PRODUCTION TO CONTINUE TO INCREASING IN COMING MONTHS BP AND OTHER NORTH SEA PRODUCERS HAVE NEVER BEEN PART OF AN ENERGYMANAGING CARTEL MR SIMON SAID OPEC MINISTERS PLAY BY A DIFFERENT SET OF RULES 9312170150 931217 BUSINESS BRIEF BLOCKBUSTER ENTERTAINMENT CORP JOINT VENTURE WITH STANDA FORMED FOR MOVE INTO ITALY BLOCKBUSTER ENTERTAINMENT CORP SAID IT IS FORMING A JOINT VENTURE TO DEVELOP AS MANY AS 200 VIDEO STORES IN ITALY IN THE NEXT FIVE YEARS BLOCKBUSTER A VIDEO AND MUSIC RETAILER BASED IN FORT LAUDERDALE FLA SAID IT IS JOINING FORCES WITH STANDA SPA A DIVERSIFIED RETAILER IN ITALY THE FIRST STORES WILL OPEN IN MILAN AND OTHER PARTS OF NORTHERN ITALY TERMS OF THE AGREEMENT WEREN'T DISCLOSED BLOCKBUSTER HAS BEEN EXPANDING ITS INTERNATIONAL OPERATIONS AND ALREADY OPERATES STORES IN AUSTRALIA CANADA EUROPE JAPAN MEXICO AND SOUTH AMERICA 9312170149 931217 TECHNOLOGY BRIEF 3COM CORP ACCORD IS REACHED TO BUY A COMPANY FOR 104 MILLION YESTERDAY IN NASDAQ STOCK MARKET TRADING 3COM SHARES ROSE 50 CENTS OR 11 TO CLOSE AT 47625 A SHARE 9312170148 931217 BUSINESS BRIEFS MCKESSON CORP SAID THE DEFENSE DEPARTMENT AWARDED THE PHARMACEUTICAL DISTRIBUTOR A 41 MILLION CONTRACT TO SUPPLY DRUGS TO MILITARY BASES IN WASHINGTON KENETECH CORP HAS SIGNED CONTRACTS TO BUILD TWO WINDPOWER GENERATING PLANTS IN CANADA BOYD GAMING CORP COMPLETED THE PURCHASE OF MAIN STREET STATION HOTEL & CASINO FROM A UNIT OF BANKAMERICA CORP FOR 165 MILLION BOYD AN OPERATOR OF SIX LAS VEGAS CASINOHOTELS IS NEGOTIATING WITH THE CITY OF LAS VEGAS TO ACQUIRE LAND ADJOINING THE MAIN STREET PROPERTY OMNICARE INC ACQUIRED THE INSTITUTIONAL PHARMACY BUSINESS OF ANDERSON MEDICAL SERVICES INC DENVER FOR CASH THE AMOUNT WASN'T DISCLOSED VENCOR INC ACQUIRED MEMORIAL HOSPITAL GREENSBORO NC THE PRICE WASN'T DISCLOSED VENCOR NOW OWNS OR LEASES 29 HOSPITALS 9312170147 931217 PAINEWEBBER TO END INCENTIVE ON SALES OF INHOUSE FUNDS MOVE COMES AS SEC URGES INDUSTRY TO REVAMP PAY TO CUT ABUSE OF INVESTORS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PAINEWEBBER GROUP INC PLANS TO PURGE THE INCENTIVE FOR ITS BROKERS TO PUSH INHOUSE MUTUAL FUNDS TO CUSTOMERS OVER COMPETING FUNDS THAT ARE LESS LUCRATIVE FOR THE FIRM UNDER A NEW PAY PLAN PAINEWEBBER WILL FUNNEL THE SAME SALES COMMISSIONS TO BROKERS NO MATTER WHAT FUNDS THEY SELL PREVIOUSLY PAINEWEBBER BROKERS RECEIVED AS MUCH AS 47 OF THE COMMISSION FOR INTERNAL OR PROPRIETARY FUNDS COMPARED WITH AS MUCH AS 45 OF OUTSIDE FUNDS MOST MAJOR BROKERAGE FIRMS PAY THEIR BROKERS MORE FOR SELLING PROPRIETARY FUNDS WHICH PRODUCE MORE PROFIT FOR THE FIRMS THE PLAN ANNOUNCED INTERNALLY TO PAINEWEBBER BROKERS YESTERDAY COMES AS THE SECURITIES AND EXCHANGE COMMISSION HAS CALLED FOR SECURITIES FIRMS TO REVAMP THE WAY THEY PAY BROKERS TO AVOID TEMPTATIONS TO ABUSE INVESTORS THE DIRECTIVE BY PAINEWEBBER THE NATION'S FIFTHLARGEST BROKERAGE FIRM TAKES EFFECT FEB 1 WHAT I'VE CHOSEN TO DO IS MAKE A STATEMENT JOSEPH GRANO PAINEWEBBER'S BROKERAGE CHIEF SAYS IN AN INTERVIEW IF EVEN ONE CLIENT PERCEIVED THE DIFFERING PAYOUT PLAN AS AN UNHEALTHY BIAS WE AS AN INDUSTRY DON'T NEED IT SAID MR GRANO WHO ALSO IS THE NEWLY ELECTED CHAIRMAN OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS SECURITIES FIRMS ROUTINELY EARN FATTER PROFITS FOR SELLING PROPRIETARY FUNDS THAN FOR SELLING COMPETING FUNDS OFFERED BY OUTSIDE FIRMS SUCH AS PUTNAM COS THAT'S BECAUSE FIRMS GET AN ANNUAL MANAGEMENT FEE OF AS MUCH AS 1 OF FUND ASSETS PLUS AS MUCH AS TWOTHIRDS OF THE SALES FEE WHICH IS AS HIGH AS 55 ON MANY PROPRIETARY BROKERAGE FUNDS MANY BROKERAGE FIRMS SELL MORE INHOUSE THAN EXTERNAL FUNDS ALTHOUGH PAINEWEBBER SELLS ROUGHLY AN EVEN AMOUNT OF INHOUSE AND EXTERNAL FUNDS FOR INSTANCE THE SPLIT AT DEAN WITTER DISCOVER & CO IS 8020 THIS YEAR IN FAVOR OF INHOUSE FUNDS THE PAINEWEBBER GAMBIT IS RISKY SOME OF THE FIRM'S 5000 BROKERS COULD REBEL BECAUSE THEY WILL END UP TAKING A CUT IN PAY AND SOME BROKERS WHO THIS YEAR HAVE AVERAGED 290000 IN GROSS COMMISSIONS COULD END UP SELLING FEWER PAINEWEBBER PROPRIETARY FUNDS HURTING THE FIRM'S PROFIT I'M AWARE OF THE RISK NO BROKER LIKES TO TAKE A CUT IN PAY SAYS MR GRANO BUT I WANT TO TAKE A LEADERSHIP ROLE IN THIS SOME PAINEWEBBER BROKERS FOR THEIR PART ARE LOOKING AT THE BRIGHT SIDE I'VE NEVER DONE FUNDS BECAUSE OF HOW I GET PAID SAYS TERESA CONTARDO A PAINEWEBBER BROKER IN SWAMPSCOTT MASS IF YOU HAVE A GOOD FUND YOU DON'T NEED TO PAY YOUR BROKERS EXTRA 9312170146 931217 WHO'S NEWS BANCORP HAWAII INC BANCORP HAWAII INC HONOLULU LAWRENCE M JOHNSON 53YEAROLD PRESIDENT WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS BANKING COMPANY EFFECTIVE IN AUGUST HE SUCCEEDS H HOWARD STEPHENSON 64 WHO WILL RETIRE RICHARD J DAHL 42 VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER WILL SUCCEED MR JOHNSON AS PRESIDENT 9312170145 931217 NORTHEAST STATES BIG THREE CLASH ON AUTO EMISSIONS BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL HARTFORD CONN IN A TENSE PUBLIC HEARING DETROIT'S BIG THREE AUTO MAKERS AND ENVIRONMENTAL REGULATORS FROM NORTHEASTERN STATES DISAGREED ON HOW TO CLEAN UP AUTO EMISSIONS SETTING THE STAGE FOR MORE COURT BATTLES THE AUTO MAKERS ACKNOWLEDGED THEY WERE ADOPTING A TAKE IT OR LEAVE IT STANCE ON THEIR PROPOSAL DETAILS OF WHICH THEY HAD PREVIOUSLY OUTLINED RATHER THAN AGREE TO THE REGULATORS' WISHES BUT THE REGULATORS MAINTAINED THAT THE INDUSTRY PLAN WAS UNACCEPTABLE BECAUSE IT PROVIDED NO MANDATE FOR SELLING ELECTRICPOWERED CARS THE HEARING WAS PART OF A CAMPAIGN BY ENVIRONMENTAL PROTECTION COMMISSIONERS IN 12 NORTHEASTERN STATES AND THE DISTRICT OF COLUMBIA WHICH ACCOUNT FOR ABOUT 40 OF THE TOTAL US VEHICLE MARKET TO IMPOSE TOUGH EMISSIONS STANDARDS SIMILAR TO THOSE ALREADY IN PLACE IN CALIFORNIA THOSE STANDARDS ARE MORE STRINGENT THAN FEDERAL RULES AND ARE THE TOUGHEST IN THE COUNTRY THE INDUSTRY HAS ALREADY SUED TO BLOCK NEW YORK AND MASSACHUSETTS FROM IMPOSING CALIFORNIA'S RULES UNDER THE CALIFORNIA CLEANAIR PLAN THE MAJOR AUTO MAKERS ARE REQUIRED TO BEGIN SELLING ZEROEMISSIONS VEHICLES SUCH AS ELECTRIC CARS BY 1998 THE NORTHEASTERN GROUP IS MOVING TO IMPOSE CERTAIN CALIFORNIALIKE PROVISIONS IN AN ATTEMPT TO ENSURE THAT THEY MEET THEIR OWN CLEANAIR GOALS ON TIME IF THEY FALL SHORT FEDERAL HIGHWAY FUNDING WOULD BE JEOPARDIZED BUT THE AUTO MAKERS THROUGH THEIR CHIEF LOBBYING GROUP THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION ONLY OFFERED AS AN ALTERNATIVE A PROPOSAL THAT INVOLVES MEETING NEW FEDERAL EMISSIONS STANDARDS EARLIER THAN REQUIRED WE CAN'T DO THIS WITHOUT NEW YORK AND WE CERTAINLY CAN'T DO THIS WITHOUT MASSACHUSSETTS SAID RICHARD L KLIMISH THE TRADE GROUP'S SPOKESMAN HE SAID THE STANDOFF IS LIKELY TO LEAD TO MORE COURT BATTLES THE INDUSTRY ARGUED THAT IF THE NORTHEASTERN STATES SUCCEED IN ADOPTING CALIFORNIASTYLE RULES IT WILL SHARPLY EXPAND THE AUTO MAKERS' REGULATORY HEADACHES CALIFORNIA WHICH ACCOUNTS FOR ABOUT 10 OF THE COUNTRY'S SALES OF CARS AND TRUCKS IS REQUIRING THE AUTO INDUSTRY TO MEET THREE LEVELS OF EMISSIONSCONTROL STANDARDS PLUS THE ZEROEMISSIONS VEHICLE REQUIREMENT ADDING THE NORTHEAST WOULD PUT FULLY HALF THE AUTO MARKET UNDER SUCH STANDARDS THE INDUSTRY SAID THE RECALL RISK IS ENORMOUS MR KLIMISH ADDED NOTING THAT UNDER THE CALIFORNIA PROGRAM THE CAR MAKERS ARE LIABLE FOR MAINTAINING VEHICLE EMISSIONCONTROL SYSTEMS 9312170144 931217 INTERNATIONAL WORLD ECONOMY ALREADY FEUDING WITH CHINA THE US FACES RIGHTS DISPUTE WITH INDONESIA BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION ALREADY HAS A HUMANRIGHTS QUARREL WITH EAST ASIA'S BIGGEST NATION CHINA WITH UNWANTED HELP FROM CONGRESS IT'S DRIFTING TOWARD A SIMILAR SPAT WITH THE SECOND LARGEST INDONESIA THE TWO CASES SHARE CERTAIN THEMES BOTH PIT THE POLITICAL VALUES OF THE US AT SOME RISK TO ITS ECONOMIC INTERESTS AGAINST THOSE OF ASIAN NATIONS WITH QUITE DIFFERENT CULTURAL HISTORIES AND IN BOTH INSTANCES US CORPORATE TYPES BELIEVE THEIR GOVERNMENT IS GOING TOO FAR AND MAY COST THEM MONEY ONE SIDE HAS A US THAT WANTS TO GIVE FOREIGN POLICY A MORAL BASIS BUT ISN'T SURE HOW TO DO IT OPPOSED IN BOTH CHINA AND INDONESIA ARE AUTHORITARIAN REGIMES WHICH RANK COMMUNAL RIGHTS OVER INDIVIDUAL ONES ECONOMIC REFORM OVER POLITICAL REFORM AND DON'T WANT FOREIGNERS TO BOSS THEM AROUND IF THE QUARREL CONTINUES NEGATIVE CONSEQUENCES COULD LEAD TO A DETERIORATION OF ALL KINDS OF RELATIONS BETWEEN OUR COUNTRIES WARNS ARIFIN SIREGAR INDONESIA'S FORMER CENTRALBANK GOVERNOR AND NEW AMBASSADOR HERE THE ISSUE ARISES FROM THE BRUTAL WAYS AN ARMYBACKED ONEPARTY REGIME SOMETIMES SUPPRESSES DISSENT INDONESIA IS NO POLICE STATE BUT PROTESTERS HAVE BEEN SHOT OR TORTURED NOTABLY IN EAST TIMOR THE FORMER PORTUGUESE COLONY SEIZED IN 1975 THUS SOME US POLITICIANS AND OFFICIALS WANT SANCTIONS UNTIL JAKARTA CLEANS UP ITS ACT OFFICIALS THERE WHO RESENT THIS MEDDLING IN THEIR AFFAIRS SAY THEY'RE ALREADY APPLYING REMEDIES YET SOME IN WASHINGTON WANT MORE DONE FASTER HOWEVER AMERICAN EXECUTIVES WORRY MOSTLY ABOUT LOSING BUSINESS IN EAST ASIA'S NO 2 DEVELOPING ECONOMY THEY EXPECT INDONESIA TO AWARD SOME 60 BILLION IN INFRASTRUCTURE CONTRACTS OVER THE NEXT FIVE YEARS AND WANT THEIR SHARE IN ALL THOSE AREAS THE US SHOULD BE ABLE TO GET ABOUT 25 OF THE TOTAL MARKET SAYS ROBERT DRISCOLL PRESIDENT OF THE USASIAN BUSINESS COUNCIL A CORPORATE GROUP WHICH MONITORS SOUTHEAST ASIAN ECONOMIES TWO SPECIFIC ISSUES CONCERN WORKER RIGHTS AND WEAPONS SALES BY MIDFEBRUARY WASHINGTON WILL DECIDE WHETHER INDONESIA IS MAKING SUBSTANTIAL CONCRETE PROGRESS TOWARD ENFORCING WORKER RIGHTS AS DEFINED BY A UNITED NATIONS AFFILIATE THESE INCLUDE LETTING FREE LABOR UNIONS ORGANIZE WITHOUT MILITARY INTERFERENCE THESE HAVE BEEN ILLEGAL SINCE A 1965 COUP ATTEMPT INVOLVING COMMUNIST AND OTHER POLITICAL UNIONS IF PRESIDENT CLINTON RULES NO SUCH INDONESIAN GOODS AS GARMENTS AND TELEPHONES 620 MILLION WORTH LAST YEAR WILL LOSE DUTYFREE STATUS GRANTED BY A US LAW INTENDED TO HELP POOR NATIONS EXPORT MORE MEANTIME A PENDING SENATE BILL WOULD BLOCK THE SALE OF AMERICAN MILITARY EQUIPMENT UNTIL INDONESIA STOPS NEW ABUSES IN EAST TIMOR AND PUNISHES THE ARMY FOR OLD ONES THE CLINTON ADMINISTRATION OPPOSES THE BILL BUT IT COULD PASS ANYWAY AS A HUMAN RIGHTS SIGNAL MR CLINTON RECENTLY STOPPED JORDAN FROM TRANSFERRING USED F5E FIGHTERS TO INDONESIA AN ANGRY PRESIDENT SUHARTO A FORMER GENERAL THEN DELAYED A 200MILLION PURCHASE OF NEW HELICOPTERS APPARENTLY FROM SIKORSKY AIRCRAFT IF TEMPERS RISE AMERICANS RISK LOSING OTHER CONTRACTS TO EUROPEAN OR JAPANESE RIVALS IRRITATED MINISTERS COULD TILT TOWARD COMPANIES LIKE SIEMENS OR ASEA BROWN BOVERI AND AWAY FROM GENERAL ELECTRIC OR WESTINGHOUSE FOR THE 30 BILLION OF ELECTRIC POWER EQUIPMENT THEY NEED TILTING MAY HAVE BEGUN SOME OF OUR MEMBERS HAVE VIRTUALLY HAD DEALS AND NOW THEY CAN'T GET THEIR PHONE CALLS RETURNED SAYS MR DRISCOLL LIKE OTHER ASIANS INDONESIANS ACCUSE THE US OF IMPOSING ALIEN VALUES WITHOUT REGARD FOR LOCAL TRADITIONS OR PROBLEMS FOR EXAMPLE POLITICAL DECISIONS THERE OFTEN STEM FROM A LABORIOUS PROCESS OF MUSYAWARAH OR CONSENSUS LOYAL OPPOSITION SEEMS A DANGEROUS CONTRADICTION IN TERMS LIKEWISE THEY THINK AMERICANS TAKE INDIVIDUAL FREEDOMS TO LUNATIC EXTREMES DESPITE CLEAR PUBLIC DANGERS AMBASSADOR ARAFIN FINDS US GUN LAWS OR THE LACK OF THEM INCOMPREHENSIBLE MEANTIME STABILITY IS OF SPECIAL CONCERN IN A NATION OF 184 MILLION PEOPLE 13500 ISLANDS SIX MAIN RELIGIONS SEVERAL ETHNIC DIVISIONS AND MANY LANGUAGES WE HAVE A SEARING MEMORY OF THE POWER OF THESE CENTRIFUGAL FORCES SAYS ALI ALATAS INDONESIA'S ARTICULATE FOREIGN MINISTER ANYTHING THAT COULD CAUSE RACIAL OR RELIGIOUS STRIFE IS TO BE AVOIDED THE CONSEQUENCES WOULD BE ANOTHER YUGOSLAVIA SOME OF THIS IS DISINGENUOUS PRESIDENT SUHARTO DOESN'T MIND SQUELCHING COMPLAINTS ABOUT HOW HE CHANNELS VAST WEALTH TO HIS RELATIVES YET THERE ARE HONEST DIFFERENCES ABOUT SOCIAL SYSTEMS AND THE US HASN'T YET FOUND WAYS TO ADVANCE ITS OWN POLITICAL VALUES WITHOUT DAMAGING ECONOMIC INTERESTS IN THE PROCESS 9312170143 931217 WHO'S NEWS BARNES GROUP'S WELLS IS SUCCEEDING FENOGLIO AS PRESIDENT CHIEF BRISTOL CONN BARNES GROUP INC SAID IT NAMED A STANTON WELLS PRESIDENT AND CHIEF EXECUTIVE SUCCEEDING WILLIAM R FENOGLIO WHO RESIGNED MR WELLS 62 YEARS OLD WAS EXECUTIVE VICE PRESIDENT OF FINANCE AT THIS MAKER OF SPRINGS AIRPLANE ENGINE COMPONENTS AND OTHER INDUSTRIAL EQUIPMENT WHEN ELECTED IN 1991 MR FENOGLIO 54 YEARS OLD WAS THE FIRST CHIEF EXECUTIVE TO COME FROM OUTSIDE THE BARNES FAMILY IN THE COMPANY'S 134YEAR HISTORY HIS MISSION HE SAID AT THE TIME WAS TO HELP BARNES OVERCOME THE PROBLEMS OF THE RECESSION THE COMPANY TRIMMED OPERATIONS BY SHEDDING SOME BUSINESSES AND ONLY RECENTLY STRUGGLED BACK TO PROFITABILITY BARNES NAMED THEODORE E MARTIN 54 TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT OF OPERATIONS AND JOHN E BESSER 51 TO THE NEW POSITION OF SENIOR VICE PRESIDENT OF FINANCE AND LAW MR MARTIN WAS PRESIDENT OF THE COMPANY'S ASSOCIATED SPRING UNIT AND MR BESSER WAS VICE PRESIDENT AND GENERAL COUNSEL OF BARNES THE BOARD ALSO ELECTED THOMAS O BARNES 44 YEARS OLD AND A DIRECTOR TO THE NEW POST OF SENIOR VICE PRESIDENT OF ADMIMINISTRATION PREVIOUSLY PRESIDENT OF THE MACHINED METAL PARTS MAKER OLSON BROTHERS CO MR BARNES IS THE SON OF BARNES CHAIRMAN WALLACE BARNES 9312170142 931217 TDS SAYS IT AGREED TO BUY ARVIG TELCOM CHICAGO TELEPHONE & DATA SYSTEMS INC SAID IT AGREED TO ACQUIRE ARVIG TELCOM INC A CLOSELY HELD OPERATOR OF MOSTLY LOCAL EXCHANGE TELEPHONE CELLULAR TELEPHONE AND CABLE TELEVISION SERVICES IN MINNESOTA AND NORTH DAKOTA TDS DIDN'T DISCLOSE THE PRICE BUT ALLOWED THAT THE TRANSACTION WILL BE VALUED AT MORE THAN 30 MILLION AND LESS THAN 100 MILLION THE SALE WHICH IS EXPECTED TO CLOSE BY MID1994 IS SUBJECT TO MINNESOTA REGULATORY APPROVALS AND POSSIBLY APPROVAL BY THE FEDERAL COMMUNICATIONS COMMISSION SAID MURRAY L SWANSON TDS EXECUTIVE VICE PRESIDENT FINANCE TDS HAS OPERATIONS IN LOCAL EXCHANGE TELEPHONES CELLULAR TELEPHONES AND RADIO PAGING NATIONALLY ARVIG BASED IN PEQUOT LAKES MINN HAS MOST OF ITS OPERATIONS IN NORTHERN MINNESOTA 9312170141 931217 CZECH CARRIER FACES TWO CRISES FROM SHAREHOLDERS BY SHAILAGH MURRAY SPECIAL TO THE WALL STREET JOURNAL PRAGUE BELEAGUERED CZECHOSLOVAK AIRLINES HAS BEEN HIT WITH TWO BOMBSHELLS FROM ITS MAJOR SHAREHOLDERS A CZECH GOVERNMENT THREAT OF A MANAGEMENT SHAKEUP AND A REQUEST FOR A PARTIAL REFUND FROM THE AIRLINE'S TWO FOREIGN INVESTORS AS A 49 SHAREHOLDER IN THE CARRIER THE CZECH GOVERNMENT BLAMES COMPANY OFFICIALS FOR ANOTHER YEAR OF RECORD LOSSES WHICH THE AIRLINE KNOWN AS CSA PUTS AT ABOUT 850 MILLION KORUNAS 293 MILLION AND THE GOVERNMENT ESTIMATES COULD REACH 12 BILLION KORUNAS THE FIRING OF UNSPECIFIED AIRLINE MANAGERS WAS SUGGESTED EARLY THIS WEEK BY JIRI WEIGL AN ADVISER TO CZECH PREMIER VACLAV KLAUS WHO SPOKE TO REPORTERS AFTER GOVERNMENT NEGOTIATIONS ON THE CSA CRISIS MEANWHILE AIR FRANCE AND THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT WHICH TOGETHER HOLD A 382 STAKE SAY A RECENT AUDIT SHOWS THEIR 1992 JOINT VENTURE WAS OVERVALUED IN ORDER TO KEEP THE RATIO OF THE SHARES THE SAME THE GOVERNMENT WOULD HAVE TO CONTRIBUTE AN ADDITIONAL 746 MILLION KORUNAS TO THE DEAL BOTH MATTERS ARE EXPECTED TO COME TO A HEAD ON MONDAY DURING A GENERAL MEETING OF CSA SHAREHOLDERS CSA OFFICIALS SAY THEY'RE NOT SURPRISED BY THE COMMOTION THEY'VE WARNED OF HUGE LOSSES SINCE THE SUMMER AND CONCEDE KEY COSTCUTTING MEASURES HAVE YET TO BE IMPLEMENTED IT'S AN ONGOING PROCESS STRESSES STANISLAV LIBIS A CSA SPOKESMAN SOME THINGS HAVE ALREADY HAPPENED AND SOME ARE PLANNED AMONG THE MORE PRESSING CONCERNS IS THE RENEGOTIATION OF A LEASE FOR TWO AIRBUS A310 AIRCRAFT THAT THE CZECH GOVERNMENT ACQUIRED IN 1989 HIGH PAYMENTS REQUIRED DURING THE FIRST HALF OF THE 10YEAR LEASE MR LIBIS SAYS REFLECT AN OUTDATED INDIFFERENCE TO COST OBSERVERS ALSO POINT OUT THAT THE LEASE WAS SIGNED AT THE PEAK OF THE AVIATION MARKET MR LIBIS SAYS THE AIRLINE HOPES TO SPREAD PAYMENTS EQUALLY OVER THE CONTRACT'S REMAINING YEARS ALSO ON DECK IS THE CUTTING OF NUMEROUS ROUTES SINCE 1989 CSA HAS ACTUALLY LOST INTERNATIONAL PASSENGERS DESPITE A HUGE SURGE IN AIR TRAFFIC TO AND FROM PRAGUE NOW ONE OF EUROPE'S MOST POPULAR TOURIST DESTINATIONS THE AIRLINE ALSO WANTS GOVERNMENT REGULATORS TO CURB FLIGHTS FROM WESTERN EUROPE BY RIVAL CARRIERS TO PROTECT CSA'S MOSTPROFITABLE NEW MARKET UNTIL THE AIRLINE CAN OFFER COMPETITIVE SCHEDULES IN PREPARATION FOR MONDAY'S MEETING SHAREHOLDERS SAY THEY ARE EXCHANGING STRATEGIES TO DEAL WITH THE PRICE DISCREPANCY UNCOVERED IN THE AUDIT AND CONTINUING LOSSES THAT COULD PUT CSA IN SERIOUS TROUBLE WITH ITS CREDITORS THE EBRD ISSUED A STATEMENT TUESDAY SAYING IT HAS SUBMITTED OPINIONS ON BOTH ISSUES AND THAT IT CONSIDERS IT INAPPROPRIATE TO COMMENT FURTHER UNTIL THE CZECH CABINET UNVEILS ITS POSITION WHAT OBSERVERS FEAR MOST IS THAT INSTEAD OF PRODUCING REAL SOLUTIONS THE SHAREHOLDERS' MEETING WILL TURN INTO A BLAME SESSION 9312170140 931217 ALLIEDSIGNAL SAID TO SEEK A TEXTRON UNIT LYCOMING TURBINE DIVISION GENERATES ANNUAL SALES OF ABOUT 500 MILLION BY AMAL KUMAR NAJ AND JOHN R WILKE STAFF REPORTERS OF THE WALL STREET JOURNAL ALLIEDSIGNAL INC IS TALKING WITH TEXTRON INC WITH A VIEW TO PURCHASING TEXTRON'S LYCOMING TURBINEENGINE DIVISION ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS BOTH ALLIEDSIGNAL BASED IN MORRIS TOWNSHIP NJ AND TEXTRON BASED IN PROVIDENCE RI DECLINED TO CONFIRM OR DENY THAT THE TWO SIDES ARE IN NEGOTIATIONS TEXTRON LYCOMING BASED IN STRATFORD CONN MAKES TURBINE ENGINES INCLUDING TANK AND AIRCRAFT ENGINES AND HOLDS A MAJOR CONTRACT SUPPLYING ENGINES FOR US ARMY TANKS PURCHASED BY TEXTRON IN 1985 ITS ANNUAL SALES ARE ESTIMATED AT BETWEEN 500 MILLION AND 600 MILLION ALLIEDSIGNAL MAKES ENGINEERED MATERIALS AEROSPACE AND AUTOMOTIVE PRODUCTS ANALYSTS SAID A SALE OF THE LYCOMING UNIT WOULD MAKE SENSE FOR TEXTRON AS THE COMPANY SHIFTS ITS BUSINESS FOCUS AWAY FROM DEFENSE ITS OTHER BUSINESSES RANGE WIDELY FROM EZGO GOLF CARTS TO CESSNA BUSINESS JETS BELL HELICOPTERS AUTO PARTS AND FINANCIAL SERVICES TEXTRON HAD REVENUE OF 835 BILLION LAST YEAR CAI VON RUMOHR AN ANALYST WITH COWEN & CO SAID 60 OF LYCOMING'S ANNUAL SALES ARE IN DEFENSE AND THE REST COMMERCIAL HE SAID THE SALE COULD FETCH TEXTRON LESS THAN ONE TIMES THE UNIT'S CURRENT ANNUAL REVENUE WHICH HE ESTIMATED TO BE 600 MILLION ACQUISITION OF TEXTRON LYCOMING WOULD ALSO FIT WITH ALLIEDSIGNAL'S DECLARED STRATEGY TO GROW IN THE NEXT FEW YEARS THROUGH ACQUISITIONS LAWRENCE A BOSSIDY CHAIRMAN OF ALLIEDSIGNAL HAS SAID IN INTERVIEWS THIS YEAR THAT HE WOULD LIKE PRODUCTIVITY INCREASES TO CONTRIBUTE HALF THE GROWTH AND ACQUISITIONS THE OTHER HALF HE HAS PROMISED AN ANNUAL EARNINGS GROWTH OF 13 TO 17 FROM NOW UNTIL 1995 MR BOSSIDY WHO HAS SPENT MOST OF HIS TIME RESTRUCTURING THE COMPANY SINCE TAKING OVER THE HELM ON JULY 1 1991 SAID ACQUISITIONS WILL BE IN THE COMPANY'S CORE BUSINESSES SINCE LAST YEAR ALLIEDSIGNAL HAS BOUGHT SIX BUSINESSES WITH TOTAL SALES OF ABOUT 500 MILLION THE LATEST ACQUISITION WAS THE 195 MILLION PURCHASE OF SUNDSTRAND CORP'S COMMERCIAL AVIONICS BUSINESS MR BOSSIDY SAID HE HAS KEPT THE ACQUISITIONS TO SMALL COMPANIES IN ORDER TO LEARN HOW TO ASSIMILATE NEW BUSINESSES AND MAKE THEM PROFITABLE PROMPTLY HE SAID RECENTLY THAT AS THE COMPANY GROWS MORE CONFIDENT IT WOULD IDEALLY LIKE TO BUY COMPANIES WITH SALES IN THE RANGE OF 500 MILLION THE COMPANY'S AEROSPACE DIVISION WHICH LAST YEAR HAD SALES OF 49 BILLION MAKES ENGINES FOR BUSINESS AND COMMUTER JETS AIRCRAFTLANDING SYSTEMS AND AUXILIARY POWER UNITS AMONG OTHER PRODUCTS TASSOS PHILIPPAKOS AN ANALYST AT MOODY'S INVESTORS SERVICE INC WHO FOLLOWS THE AEROSPACE INDUSTRY SAID HE WOULDN'T BE SURPRISED IF ALLIEDSIGNAL PURCHASED TEXTRON LYCOMING IN VIEW OF THE INDUSTRYWIDE CONSOLIDATION UNDER WAY BUT I WOULD BE CONCERNED ABOUT WHETHER THERE WOULD BE OVERLAPS BETWEEN THE TWO BUSINESSES HE SAID IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ALLIEDSIGNAL CLOSED AT 7525 UP 125 CENTS AND TEXTRON CLOSED AT 5725 UP 375 CENTS 9312170139 931217 INTERNATIONAL GERMANY LOWERS MONETARY GROWTH TARGET FOR 1994 BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT THE GERMAN CENTRAL BANK SET A LOWER 4 TO 6 TARGET RANGE FOR MONETARY GROWTH IN 1994 REFLECTING EXPECTATIONS OF LOWER POTENTIAL PRODUCTION IN WESTERN GERMANY AFTER A YEARLONG SLIDE IN INDUSTRY INVESTMENT THE LOWER RANGE IS NOT A SIGNAL FOR A MORE RESTRICTIVE INTERESTRATE POLICY BUNDESBANK PRESIDENT HANS TIETMEYER SAID IN ANNOUNCING THE TARGET THE BUNDESBANK LEFT KEY LENDING RATES UNCHANGED YESTERDAY AT THE LAST SCHEDULED MEETING THIS YEAR OF ITS POLICYSETTING CENTRAL BANK COUNCIL THE CENTRAL BANK HAS CROPPED ITS OFFICIAL DISCOUNT RATE SIX TIMES THIS YEAR BRINGING IT DOWN TO 575 CURRENTLY FROM 825 AT THE BEGINNING OF THE YEAR THE BUNDESBANK ALSO ANNOUNCED THAT ITS BROADLY DEFINED M3 MEASURE OF THE MONEY SUPPLY ROSE BY AN ANNUALIZED 72 RATE IN NOVEMBER UP FROM 69 IN OCTOBER AND WELL ABOVE THE CENTRAL BANK'S 45 TO 65 TARGET RANGE FOR THE YEAR THE CENTRAL BANK NOW APPEARS LIKELY TO OVERSHOOT ITS MONETARY TARGET FOR THE THIRD STRAIGHT YEAR RAISING QUESTIONS OVER THE CREDIBILITY OF ITS POLICY GUIDELINES BUT MR TIETMEYER POINTED TO EASING WESTERN GERMAN INFLATION AS JUSTIFYING THE BUNDESBANK'S EASIER CREDIT POLICIES SINCE LAST YEAR MR TIETMEYER SAID THE NEW MONETARY TARGET STANDS FOR CONTINUITY NOT CHANGE HE SAID THE DIFFERENCE IS THAT THE BUNDESBANK EXPECTS THE GROWTH IN GERMANY'S PRODUCTION POTENTIAL TO EASE TO 25 IN 1994 COMPARED WITH THE ESTIMATED 3 GROWTH FACTORED INTO THIS YEAR'S 45 TO 65 MONETARY TARGET RANGE MR TIETMEYER SAID THE GERMAN CENTRAL BANK WOULD CONTINUE TO CAUTIOUSLY EXPLORE FUTURE OPPORTUNITIES FOR MORE INTERESTRATE REDUCTIONS BUT HE EMPHASIZED THAT THE BUNDESBANK WOULDN'T TRY TO FORCE THE PACE WHICH RISKS UNDERMINING CONFIDENCE IN THE MARK DRIVING MONETARY EXPANSION IN 1993 WAS CONTINUED HEAVY DEMAND FOR BANK CREDIT UNITY FINANCING AND STRONG GROWTH IN HOUSING CONSTRUCTION MR TIETMEYER SAID IN ADDITION THE BUNDESBANK SUSPECTS THAT THE MARK'S ROLE AS A PARALLEL CURRENCY WITH EASTERN EUROPE ECONOMIES HAS DRIVEN UP THE AMOUNT OF MARKS IN CIRCULATION 9312170138 931217 MULTIMEDIA HAS BECOME A STAR THIS CHRISTMAS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL IN THIS THE WORLD'S FIRST MULTIMEDIA CHRISTMAS SEASON EXECUTIVE ED ESBER HAS APPARENTLY BEEN A VERY GOOD BOY SALES OF MULTIMEDIA UPGRADE KITS AT MR ESBER'S CREATIVE LABS INC THIS CHRISTMAS ARE UP AS MUCH AS 65 FROM LAST YEAR AND ORDERS CONTINUE TO FLOOD IN WE'RE SEEING TREMENDOUS UNBELIEVABLE DEMAND SAYS MR ESBER PRESIDENT OF THE MILPITAS CALIF COMPANY WHICH DOMINATES THE MARKET FOR THE HIGHTECH KITS AFTER YEARS OF PROMISING MUCH AND DELIVERING LITTLE MULTIMEDIA COMPUTING HAS EMERGED AS THIS CHRISTMAS'S UPSCALE GIFT OF CHOICE DESPITE A CONTINUING SHORTAGE OF BLOCKBUSTER SOFTWARE AND APATHY FROM A BIG CHUNK OF THE COUNTRY THERE'S LITTLE DOUBT THAT THE MACHINES WHICH HARNESS TEXT SOUND AND VIDEO ARE FINALLY MAKING INROADS WITH CONSUMERS THE GRAPHICS ARE SLICK THE SOUND IS STEREOQUALITY AND THE SOFTWARE LEANS HEAVILY TOWARD GAMES AND EDUCATION PROGRAMS TO TOP IT OFF PRICES ARE TUMBLING SENDING THE COST OF A NEW MULTIMEDIA SYSTEM BELOW 2000 AND INTO THE RANGE OF A NEW UNTAPPED GROUP OF GIFTGIVERS AS A RESULT MULTIMEDIA COMPUTERS ARE BACKLOGGED SOFTWARE SALES ARE BOOMING AND UPGRADE KITS LIKE MR ESBER'S WHICH EQUIP EVERYDAY PERSONAL COMPUTERS WITH THE COMPACTDISK SYSTEMS AND PLUGIN SOUND BOARDS THAT MAKE OLD MACHINES SING HAVE BECOME RETAIL STARS SALES AT MEDIA VISION TECHNOLOGY INC A CREATIVE LABS COMPETITOR ARE EXPECTED TO HIT 2314 MILLION THIS YEAR MORE THAN TRIPLE LAST YEAR'S THE MULTIMEDIA BUSINESS IS SO GOOD THAT IT IS SAVING THE PC INDUSTRY FROM WHAT MIGHT WELL HAVE BEEN A HOHUM HOLIDAY NOW DESPITE A LULL BETWEEN PRODUCT CYCLES AND A CEASEFIRE IN THE PRICE WARS PC SALES ARE EXPECTED TO BEAT EVEN LAST YEAR'S RECORD SHOWING ANALYSTS AT DATAQUEST INC A SAN JOSE CALIF MARKET RESEARCH CONCERN RECENTLY RAISED THEIR PROJECTIONS FOR MULTIMEDIA SHIPMENTS IN LIGHT OF THE HOLIDAY RUSH THE COMPANY NOW EXPECTS SALES OF CDROM PLAYERS AN ESSENTIAL COMPONENT OF EVERY MULTIMEDIA SYSTEM SHIPPED TO REACH 48 MILLION THIS YEAR MORE THAN TRIPLE 1992 SHIPMENTS INDEED MANUFACTURERS ARE HAVING TROUBLE KEEPING UP WITH THE BOOMING DEMAND COMPUSA INC A DALLASBASED OPERATOR OF COMPUTER SUPERSTORES REPORTS WEAK SUPPLIES OF TOP MACHINES FROM INTERNATIONAL BUSINESS MACHINES CORP AND COMPAQ COMPUTER CORP AND MR ESBER SAYS HE COULD SELL 25 MILLION MORE THIS QUARTER IF HE COULD FILL ALL THE ORDERS THESE THINGS ARE AS HOT AS A FIRECRACKER SAYS JIM KEENAN A MARKETING DIRECTOR AT IBM PERSONAL COMPUTER CO WHICH BUILT THREE TIMES AS MANY MULTIMEDIA MACHINES IN THE FOURTHQUARTER AS IT HAD INITIALLY PLANNED AND STILL CAN'T MEET DEMAND WE'VE BEEN RUNNING BEHIND THE CURVE HE SAYS IN ADDITION TO IBM'S PS/1 MULTIMEDIA MACHINE RETAILERS REPORT THAT COMPAQ'S PRESARIO MODEL AND AST RESEARCH INC'S ADVANTAGE LINE ARE SELLING PARTICULARLY WELL ALL THREE COMPANIES ARE CHASING THE MULTIMEDIA BUSINESS OF APPLE COMPUTER INC A PIONEER IN THE MULTIMEDIA AND CONSUMER COMPUTING MARKETS ANALYSTS EXPECT APPLE TO SELL ABOUT ONE MILLION CDROM DRIVES THIS YEAR DESPITE AN OPERATING SYSTEM THAT STILL ISN'T COMPATIBLE WITH THE REST OF THE PC WORLD ON THE SOFTWARE SIDE MULTIMEDIA HAS RESURRECTED A MARKET FOR COMPUTER GAMES THAT HAD BEEN PUMMELED BY COMPETITORS LIKE SEGA AND NINTENDO THE HOLIDAY SUCCESS OF GAMES LIKE REBEL ASSAULT 7TH GUEST AND DAY OF THE TENTACLE HAS SPARKED A GOLD RUSH AMONG COMPUTER PROGRAMMERS ACCORDING TO THE MULTIMEDIA PC MARKETING COUNCIL A TRADE GROUP THAT ASSIGNS A MULTIMEDIA TRADEMARK TO PRODUCTS 450 NEW TITLES ARE NOW REGISTERED FOR THE DESIGNATION UP FROM 150 THAT APPLIED DURING ALL OF 1991 AND 1992 MULTIMEDIA SOFTWARE IS APPEALING BECAUSE IT COMBINES THE TRADITIONAL TEXT EDITING AND PROCESSING OF PCS WITH THE SOUND AND VIDEO OF TELEVISION IN MULTIMEDIA ENCYCLOPEDIAS FOR INSTANCE USERS CAN LOOK UP SAY ITALY AND READ A TRADITIONAL ENTRY ON THE COUNTRY BUT THEY CAN ALSO CALL UP A COLOR MAP THAT SHOWS ITALY'S LOCATION WITHIN EUROPE AND CAN SEE A FILM CLIP OF GONDOLAS GLIDING DOWN THE CANALS OF VENICE WHILE ARIAS PLAY IN THE BACKGROUND FOR RETAILERS THE MULTIMEDIA BOOM BRINGS ESPECIALLY GOOD CHEER UNLIKE MOST COMPUTING ADVANCES OF THE LAST DECADE MULTIMEDIA IS CONSUMERDRIVEN TODAY'S ENTRYLEVEL MULTIMEDIA PCS FOR EXAMPLE COST NO MORE THAN A TRADITIONAL COMPUTER COST A YEAR AGO NOW THOUGH FOR LESS THAN 2000 CONSUMERS CAN GET A MACHINE WITH A CDROM DRIVE WHICH LOOKS AND OPERATES LIKE AN AUDIO COMPACTDISK PLAYER AND A COLOR MONITOR SPEAKERS AND AN INTERNAL SOUND CARD TO MAKE THE SPEAKERS WORK MOST MULTIMEDIA PCS ALSO INCLUDE AT LEAST AN INTEL CORP 386 MICROPROCESSOR OR EQUIVALENT THE CDROMS CONSUME LOTS OF PROCESSING POWER AND AT LEAST FOUR MEGABYTES OF MEMORY DESPITE ITS RECENT SUCCESS MULTIMEDIA DOESN'T RULE THE TECHNOLOGY WORLD QUITE YET EVEN IF THE CHRISTMAS BOOM PUSHES 1993 CDROM SALES TO NEARLY FIVE MILLION UNITS AS ANALYSTS EXPECT THAT'S STILL A LONG WAY FROM THE 25 MILLION TRADITIONAL PCS EXPECTED TO BE SOLD THIS YEAR AND DESPITE ALL THE HUBBUB OF THE 30 OF US HOMES WITH PCS LESS THAN 3 HAVE MULTIMEDIA MACHINES DATAQUEST ANALYSTS SAY MULTIMEDIA COMPUTERS WILL MOST LIKELY TRACK THE GROWTH CURVES OF VCRS AND AUDIO CD PLAYERS THOSE TECHNOLOGIES LANGUISHED IN RELATIVE OBSCURITY FOR YEARS THEN GATHERED ENORMOUS MOMENTUM VERY QUICKLY AS EARLY AS NEXT YEAR SAYS DATAQUEST ANALYST BRUCE RYON THE GROWTH RATES FOR UPGRADE KITS WILL PEAK AS MORE PEOPLE BUY MACHINES ALREADY EQUIPPED WITH THE TECHNOLOGY GROWTH RATES IN MULTIMEDIA SYSTEMS WILL PEAK SHORTLY AFTERWARDS WHILE MR ESBER SAYS HE'S CONVINCED MULTIMEDIA HAS FINALLY BECAME A MAINSTREAM TECHNOLOGY HE'S WARY OF PREDICTING A REVOLUTION THERE'S A DANGER WE COULD CREATE EXPECTATIONS THAT CAN'T BE MET FOR YEARS HE SAYS FOR EXAMPLE MANY PEOPLE STILL FIND MULTIMEDIA SOFTWARE DISAPPOINTING MANY OF THE PROGRAMS NOW AVAILABLE ARE CDROM VERSIONS OF SOFTWARE THAT BEGAN ON DISKS AND THE PROGRAMS THAT ARE AVAILABLE HAVE RELATIVELY LIMITED APPEAL A SURVEY OF RETAILERS BY PC DATA A RESTON VA CONSULTING FIRM SHOWS THAT THE TOP MULTIMEDIA TITLES ARE ENTIRELY CHILDREN'S GAMES AND LEARNING PROGRAMS WHILE THAT'S FINE FOR BABY BOOMERS WITH KIDS IT LEAVES OUT A HUGE GROUP OF PEOPLE WHO WANT TO EXPAND WHAT THEY CAN DO WITH THEIR COMPUTER THERE'S NO SOFTWARE OUT THERE THAT DOES WHAT I WANT TO DO SAYS RICHARD COLE A POLICE OFFICER IN THE DALLAS SUBURB OF PLANO MR COLE HAS A HOME COMPUTER WHICH HE USES FOR BUDGETING AND WORD PROCESSING BUT HE HAS PUT OFF BUYING A MULTIMEDIA MACHINE THE PROGRESS IN THIS STUFF IS SO RAPID YOU'RE BETTER OFF WAITING HE SAYS BUT WILLIE WILLIAMS A DALLAS ENGINEER WHO SPENT MONDAY IN A COMPUTER STORE BUYING MULTIMEDIA SOFTWARE FOR HIS KIDS BOUGHT HIS FIRST MULTIMEDIA COMPUTER A MONTH AGO HE BOASTS THAT IT NOW WORKS DOUBLEDUTY FUNCTIONING AS A WORK COMPUTER FOR HIM AND AN ENTERTAINMENT CENTER FOR HIS TWO GIRLS I WOULDN'T BUY ANYTHING ELSE MR WILLIAMS SAYS IT'S THE BEST EDUCATIONAL TOOL EVER SOURCE COMPUTER CITY A UNIT OF TANDY CORP 9312170137 931217 TECHNOLOGY FORD'S ELECTRICVEHICLE PROJECT RIDES ON A BATTERY RIVALS CONSIDER TOO RISKY BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL IN ITS PURSUIT OF AN ELECTRIC VEHICLE THAT IT CAN SELL UNDER CALIFORNIA'S COMING ZEROEMISSION RULES FORD MOTOR CO IS RELYING ON A RISKY HIGHTEMPERATURE BATTERY THAT SEVERAL COMPETITORS HAVE DISMISSED AS TOO COMPLEX AND POTENTIALLY TOO DANGEROUS FOR WIDESPREAD USE IT IS THE SODIUMSULFUR BATTERY AND AUTO MAKERS THAT HAVE TESTED AND DROPPED IT INCLUDE GENERAL MOTORS CORP DAIMLERBENZ AG'S MERCEDESBENZ AG UNIT AND BAYERISCHE MOTOREN WERKE AG THEY CONCLUDED THAT THE CHEMICAL COMPOSITION OF SUCH BATTERIES MAKES THEM TOO PRONE TO CAUSING FIRES WHEN OVERCHARGED OR WHEN THE BATTERY BECOMES TOO HOT DURING USE FORD MAINTAINS HOWEVER THAT THE STATEOFTHE ART VERSION OF THE SODIUMSULFUR BATTERY IT IS USING IN ITS ECOSTAR UTILITY VANS NOT ONLY IS SAFE BUT ALSO HOLDS TREMENDOUS MARKET POTENTIAL FORD SAYS THIS BATTERY HAS A COMPUTERIZED SECURITY SYSTEM THAT MONITORS TEMPERATURE WE HAVE MORE EXPERIENCE WITH THIS BATTERY THAN ANYONE ELSE IN THE WORLD SAYS ROBERT KIESSEL THE MANAGER OF FORD'S ECOSTAR PROGRAM HE SAYS THE VEHICLE'S CURRENT BATTERY HAS BEEN THROUGH EXTENSIVE TESTS INCLUDING STANDARD CRASH TESTING OR WE WOULD HAVE NOT PUT THE CAR OUT ON THE STREETS AT THE SAME TIME THE ECOSTAR IS DRAWING LESS THAN RAVE REVIEWS FOR OTHER REASONS FORD STARTED OFFERING THE UTILITY VAN TO UTILITY COMPANIES AND OPERATORS OF VEHICLE FLEETS LAST WEEK AS PART OF A NATIONAL TEST BUT THE LEASE RATE IS A STIFF 100000 FOR 30 MONTHS AND SOME CALIFORNIA UTILITY EXECUTIVES HAVE BEEN IRKED BY FORD'S OWN PUBLIC ADMISSION THAT ITS VENTURE INTO SODIUMSULFUR BATTERIES MAY NOT PAN OUT BY 1998 WHEN AUTO MAKERS WILL BE REQUIRED TO OFFER ZEROEMISSION VEHICLES IN CALIFORNIA DURING NEWS CONFERENCES IN CALIFORNIA LAST WEEK TO UNVEIL THE ECOSTAR TEST FLEET FORD EXECUTIVES SAID IT WAS HIGHLY DOUBTFUL THAT THE ECOSTAR'S 45000 BATTERY COULD BECOME ECONOMICALLY FEASIBLE BY 1998 THE AUTO MAKER'S FRANKNESS PROMPTED A SACRAMENTO UTILITY TO BALK ON AN AGREEMENT TO LEASE THREE ECOSTARS FOR TESTING FORD OFFICIALS DON'T EVER SEE THIS BATTERY AS AN ECONOMICALLY VIABLE SYSTEM SAYS MICHAEL WIRSCH WHO MANAGES THE ELECTRIC TRANSPORTATION DEPARTMENT FOR THE SACRAMENTO MUNICIPAL UTILITY DISRICT I ASSUMED FORD WOULD BE WORKING WITH US RATHER THAN AGAINST US SAFETY IS CLEARLY A KEY ISSUE COMPETING AUTO MAKERS HAVE CONCLUDED THAT THE NEED TO KEEP THE BATTERY'S SODIUM IN A CONSTANT MOLTEN STATE DURING OPERATION POSES A CHALLENGE THAT MAY NOT BE WORTH PURSUING IF OTHER FORMS OF BATTERY TECHNOLOGY PROVE MORE REALISTIC INDEED BOTH MERCEDES AND BMW CONFIRMED THAT THEY HAVE EXPERIENCED INCIDENTS OVER THE PAST YEAR IN WHICH SODIUMSULFUR BATTERIES CAUGHT FIRE BECAUSE OF OVERCHARGING OR CELLS' BREAKING UP WITHIN THE BATTERY DURING USE IN ONE EXPERIMENT INVOLVING THE USE OF ELECTRIC VEHICLES ON THE GERMAN ISLAND OF RUEGEN SODIUMSULFUR BATTERIES HAVE BEEN BANNED FROM PASSENGER CARS BECAUSE OF THE SCARCENESS OF FOOLPROOF DESIGNS YOU DO NOT WANT TO GIVE THE TECHNOLOGY AWAY TO INEXPERIENCED PEOPLE SAYS ANDREAN GOUBEAU BMW'S CHIEF ENGINEER OF ELECTRONICS THROUGH AN AGREEMENT WITH EUROPEAN BATTERY MAKER ASEA BROWN BOVERI FORD HAS EXCLUSIVE RIGHTS TO THE SODIUMSULFUR BATTERY DESIGN IT IS USING IN THE ECOSTAR THAT BATTERY SYSTEM IS BACKED UP BY A VARIETY OF CHECKS THAT KEEP CONSTANT TRACK OF THE INTERNAL TEMPERATURE OF THE BATTERY'S MOLTEN SODIUM SHOULD THE BATTERY PAN OUT FOR FORD THE PAYOFF COULD BE BIG IN THE MOST IMPORTANT MEASURE HOW MUCH RANGE IT OFFERS BETWEEN CHARGES THE ALLURE OF SODIUMSULFUR BATTERIES IS THEIR POTENTIAL FOR PROVIDING THE KIND OF DRIVING RANGE THAT FORD THINKS IT WILL NEED TO MAKE ELECTRIC VEHICLES SELL 100 MILES REGARDLESS OF HOW THE VEHICLE IS DRIVEN SO FAR ELECTRIC CARS POWERED BY CHEAPER LEADACID BATTERIES WHICH ARE SIMPLER AND CAN OPERATE AT COOLER TEMPERATURES TEND TO OFFER DRIVING RANGES OF MUCH LESS THAN 100 MILES EVEN DR GOUBEAU OF BMW SAYS HIS COMPANY WILL KEEP ABREAST OF FORD'S RESEARCH IF THEY SUCCEED THIS YEAR IN SOLVING THE PROBLEMS I THINK THE BATTERY REALLY HAS THE POTENTIAL OF BEING READY IN TIME DR GOUBEAU SAYS 9312170136 931217 LEISURE & ARTS THE GALLERY LUCIAN FREUD BY DEBORAH SOLOMON NEW YORK LUCIAN FREUD HAS OFTEN BEEN DESCRIBED BY HIS FELLOW ENGLISHMEN AS THE GREATEST LIVING FIGURATIVE PAINTER YET A TASTE FOR HIS WORK IS NOT EASILY ACQUIRED HE HAS STAKED HIS ENTIRE OEUVRE ON A COLD AND FUSSY APPROACH TO PORTRAITURE AND THE STUDIO NUDE THE BODIES THAT LOLL THROUGH HIS PICTURES ARE INEVITABLY DEPICTED AS LUMPY SACKS OF FLESH EMBELLISHED ONLY BY VARICOSE VEINS BROWN AGE SPOTS AND A SMATTERING OF MOLES THAT ANY MANHATTAN DERMATOLOGIST WOULD BE QUICK TO EXCISE I HAVE ALWAYS FOUND MR FREUD'S WORK UNNECESSARILY UGLY AND ATTRIBUTED HIS POPULARITY TO SOMETHING DRAB AND UNHEATED IN THE BRITISH SOUL BUT LUCIAN FREUD RECENT WORK WHICH OPENED YESTERDAY AT THE METROPOLITAN MUSEUM OF ART HAS CHANGED MY OPINION OF HIM TO BE SURE THE SHOW IS A FREAK SHOW REVELING IN A DEBASED VIEW OF HUMAN EXISTENCE AND OFFERING UP GROTESQUERIES WITH AN AVIDNESS WORTHY OF BARNUM THE SPECTACLE IS LITERALLY A THREERING AFFAIR CONTINUING AROUND TOWN WITH RELATED SHOWS AT THE ROBERT MILLER GALLERY AND THE MATTHEW MARKS GALLERY YET FOR ALL ITS CIRCUSY BRASHNESS THE WORK FINALLY SUCCEEDS THROUGH SHEER PICTORIAL INTELLIGENCE MR FREUD WHO WAS BORN IN BERLIN IN 1922 ESCAPED PERMANENTLY TO ENGLAND AT THE AGE OF NINE ALONG WITH HIS FATHER ERNST AN ARCHITECT AND THE YOUNGEST SON OF SIGMUND FREUD IT IS EASY TO SAY THAT LUCIAN FREUD WENT INTO THE FAMILY BUSINESS ANALYSIS STRIPPING AWAY ALL PROTECTIVE VENEERS TO PROBE OUR UNDEFENDED NAKED SELVES YET LUCIAN'S VISION IS BITTER COMPARED WITH GRANDPA'S HIS SITTERS WHO ARE FRIENDS AND LOVERS RATHER THAN PROFESSIONAL MODELS ARE PAINTED IN THE STUDIO A CHILLY UNLUXURIOUS PLACE IT HAS BARE WOODEN FLOORS EXPOSED PIPES AND FEW FURNISHINGS BESIDES THE RUMPLED BEDS WHERE HIS SUBJECTS VARIOUSLY SLEEP SHIVER OR IMPASSIVELY STARE OFF INTO SPACE THEY'RE CAPTURED NOT IN THE BLOOM OF LIFE BUT PRACTICALLY DECOMPOSING BEFORE OUR EYES THEIR FLESH EMITTING THE PASTY WAXEN SHEEN OF THE PHYSICALLY ENFEEBLED THE METROPOLITAN SHOW UP UNTIL MARCH 13 WHICH WAS ORGANIZED BY THE WHITECHAPEL ART GALLERY IN LONDON AND SHOWN THERE EARLIER THIS YEAR COULD NOT LOOK BETTER ANYWHERE IT WAS HUNG BY THE MET'S WILLIAM S LIEBERMAN ON BEIGE ALMOST FLESHHUED WALLS WHICH COAX EVERY LAST BIT OF WARMTH OUT OF MR FREUD'S PAINTINGS AS WELL AS THE SIMILARLY FRIGID SPACES OF THE MET'S LILA ACHESON WALLACE WING MR LIEBERMAN HAS ALSO BROADENED THE LONDON SHOW WHICH WAS A SURVEY OF THE ARTIST'S PRODUCTION OF THE PAST DECADE BY ADDING SOME EARLY PAINTINGS SEEING THEM NOW WE SCOUR THEIR SURFACES FOR CLUES OF THINGS TO COME AND DETECT THE RANK SCENT OF MORBIDITY EVERYWHERE HALFDEAD HOUSE PLANTS ARE PLUNKED DOWN IN OTHERWISE CONGENIAL SETTINGS THEIR WILTED LEAVES HINT AT FUTURE FLACCIDITIES AND AN ENCROACHING DARKNESS IN GIRL WITH ROSES 19471948 A LONGSTEMMED ROSE IS MISSING ITS STEM A PROPHECY OF LATER MORE LITERAL CASTRATIONS GENERALLY THE ARTIST'S CRISP EARLY STYLE MAKES HIS FIGURES SEEM LESS DEFINED BY LINE THAN ENTOMBED BY IT STILL THERE IS LITTLE IN THE EARLY PICTURES TO PREPARE US FOR THE OVERTHETOP EXTRAVAGANCE OF HIS MORE RECENT WORK IN MANY OF THESE PAINTINGS THE BODIES ARE UNSPARINGLY NAKED BUT THE STUDIO ITSELF IS CLOTHED CLAD THAT IS IN A GIANT PILE OF WHITE RAGS THIS CRUMPLED MOUND OF FABRIC IS AN INTRIGUING IMAGE RESEMBLING DRAPERY DUMPED ON THE FLOOR AS IF TO ANNOUNCE THAT CLASSICAL PERFECTION IS NO LONGER POSSIBLE OR ARE THESE RAGS USED BY THE ARTIST TO CLEAN HIS BRUSHES RATHER A REMINDER OF TENS NO HUNDREDS OF FALSE STARTS THE HERCULEAN AND YET FUTILE EFFORT OF PAINTING IN STANDING BY THE RAGS 19881990 IN MY MIND THE BEST PIECE IN THE SHOW A STRICKENLOOKING BLONDE LEANS AGAINST THE RAGS AS IF AGAINST A WALL EVENTUALLY YOU REALIZE THAT THE RAGS FORM A PAIR OF ANGEL'S WINGS THOUGH THEY CANNOT LIFT HER UP EVEN SPIRITUALLY FROM THE AGED AND EXHAUSTED VESSEL OF A BODY SHE INHABITS WHETHER IN A LARGE FIGURE PAINTING LIKE THIS OR IN HIS MANY SMALLSCALE PORTRAITS SKIN IS MR FREUD'S OVERWHELMING MOTIF AND HE RENDERS IT WITH AN ALMOST EXPRESSIONISTIC BRAVURA NAKED MAN BACK VIEW 19911992 RECENTLY ACQUIRED BY THE MET OFFERS UP THE ELEPHANTINE PERFORMANCE ARTIST LEIGH BOWERY HUNCHED ON AN OTTOMAN HIS SHAVED HEAD LOWERED HIS BLUBBERY BACK PAINTED AS IF IT WERE AN OBJECT OF AWESOME BEAUTY DOWN TO THE UNSIGHTLY RED BLOTCHES ON HIS BUTTOCKS MR FREUD'S ART ECHOES WITH IMAGES FROM EARLIER ART HIS REFERENCES RANGING FROM THE SELFCONSCIOUS CLOWNS OF WATTEAU TO THE SINUOUS BACKSIDES OF INGRES'S ODALISQUES TO OF ALL THINGS THE THIN LUMINOUS WASHES OF HELEN FRANKENTHALER HERE EXPLOITED AS DECORATIVE BACKDROPS YET IT'S ART HISTORY FILTERED THROUGH DISEASE EVEN HIS PIGMENT CAN SEEM STRANGELY DEPLETED OF CELLS HE PILES HIS PAINT ON IN THICK MOTTLED IMPASTO AND THE FINISHED SURFACES LOOK DRY AND SCALY IS THIS ART OR IS IS PSORIASIS ONE IS ALMOST TEMPTED TO ASK AT TIMES MR FREUD'S WORK REMINDS US OF HIS LONDON NEIGHBOR FRANCIS BACON IN ITS EXISTENTIAL HARSHNESS THEY BOTH SEEM TO FEEL THAT THE WORLD IS A MORGUE AND WE'RE ALL DEAD MEAT ON SLABS WHAT SETS MR FREUD APART IS NOT MERELY HIS TALENT FOR CAPTURING A LIKENESS THAT'S EASY BUT FOR CAPTURING HOW UNSURE OUR IDENTITIES REALLY ARE HIS SITTERS APPEAR UNCOMFORTABLE INSIDE THE ARMOR OF THEIR SKIN HE PAINTS MEN LIKE WOMEN AND WOMEN LIKE MEN HE TURNS FREAKS INTO ARISTOCRATS AND ARISTOCRATS INTO FREAKS WHILE THE BEASTLY LEIGH BOWERY IS RENDERED SO REVERENTLY HE COULD BE A NOBLEMAN AN ACTUAL NOBLEMAN SUCH AS LORD GOODMAN IS TURNED INTO A BEAST ALL FLARING NOSTRILS AND CROSSED EYES OF COURSE IT IS NOT ALWAYS POSSIBLE TO KNOW WHOSE FACE WE'RE CONTEMPLATING MR FREUD MAKES A BIG DEAL ABOUT KEEPING THE IDENTITY OF HIS SITTERS UNDER WRAPS THIS IS IRRITATING IT TURNS THE EXPERIENCE OF SEEING HIS WORK INTO AN INSIDER'S GAME OF WHO'S WHO THE PRACTICE APPARENTLY EXTENDS BEYOND HIS CANVASES RECENTLY WHEN MR FREUD'S EXWIFE CAROLINE BLACKWOOD WROTE AN APPRECIATION OF HIS WORK FOR THE NEW YORK REVIEW OF BOOKS NEITHER SHE NOR HER EDITORS COULD BE BOTHERED TO DISCLOSE THE CONJUGAL CONNECTION PERHAPS THE ASSUMPTION IS THAT IF YOU'RE NOT ALREADY FAMILIAR WITH MR FREUD'S CROWD YOU AREN'T CLUED IN ENOUGH TO PLAY HIS GAME WHAT IS IT ABOUT MR FREUD THAT ENCOURAGES SUCH SNOBBISM WELL AS GRANDPA SIGMUND MIGHT SAY MAYBE HE HAS A COMPLEX 9312170135 931217 RUSSIA'S NEW THREAT TO NEIGHBORS BY JAMES SHERR THE DISTURBING RESULTS OF RUSSIA'S ELECTIONS RAISE AN OBVIOUS QUESTION COULD RUSSIA ONCE AGAIN BECOME A DANGER TO OTHERS AS WELL AS TO ITSELF THE PUBLICATION OF RUSSIA'S NEW MILITARY DOCTRINE IN NOVEMBER IS PERSUADING MANY THAT IT COULD IT IS A REVEALING AND OFTEN BLUNT DOCUMENT LEAVING NO DOUBT THAT MILITARY POWER WILL REMAIN AN IMPORTANT INSTRUMENT OF RUSSIAN POLICY FOR YEARS TO COME THOSE CERTAIN TO BE DISCOMFITED BY THE DOCTRINE UKRAINE THE BALTIC STATES AND THE FORMER WARSAW PACT COUNTRIES MUST ASK WHOSE THINKING THE DOCTRINE EXPRESSES IN MR YELTSIN'S RUSSIA THE MILITARY HAS BEEN ONLY ONE INSTITUTION AMONG MANY DESPITE THE DRAMATIC TRIUMPH OF THE NATIONALISTS INSTITUTIONAL DISCORD IS LIKELY TO REMAIN THE RULE RATHER THAN THE EXCEPTION WHO ULTIMATELY IS MAKING MILITARY AND FOREIGN POLICY DECISIONS AND WHO WILL DO SO IN THE FUTURE AND WILL THE ARMY ACTUALLY BE GIVEN THE MEANS TO ACT ON ITS INTENTIONS IN THE NUCLEAR SPHERE THESE INTENTIONS ARE PLAINLY UNSETTLING THE MOST STRIKING FEATURE OF THE NEW DOCTRINE IS ITS REVERSAL OF THE NO FIRST USE NUCLEAR POLICY WHICH HAD BEEN IN EXISTENCE SINCE 1982 GIVEN THE COLLAPSE OF THE WARSAW PACT AND THE FIRST ECHELON OF SOVIET MILITARY POWER THE REVOCATION OF THIS POLICY IS NOT ALTOGETHER SURPRISING BUT WHAT IS SURPRISING IS HOW FAR THAT REVOCATION EXTENDS IN THE FIRST PLACE RUSSIA RESERVES THE RIGHT TO LAUNCH NUCLEAR STRIKES IN RESPONSE NOT ONLY TO A CONVENTIONAL ATTACK BUT ALSO TO A CONVENTIONAL ATTACK CARRIED OUT BY A NONNUCLEAR STATE IF THAT STATE HAS AN ALLIANCE AGREEMENT WITH A NUCLEAR STATE THIS IS A CLEAR REFERENCE TO TURKEY AND A CLEAR WARNING TO POLAND AND OTHER FORMER WARSAW PACT COUNTRIES WHO SEEK TO JOIN NATO SECOND RUSSIA ADOPTS A MOST PERMISSIVE DEFINITION OF ATTACK IT ENCOMPASSES NOT ONLY RUSSIAN FEDERATION TERRITORY BUT ALSO CIS ALLIES AND RUSSIA'S FORCES ABROAD AS WELL AS ACTIONS TO DESTROY OR DISRUPT STRATEGIC NUCLEAR FORCES THE EARLY WARNING SYSTEM NUCLEAR POWER AND CHEMICAL INSTALLATIONS EQUALLY UNSETTLING IS THE DOCUMENT'S TREATMENT OF LOCAL WAR WHICH THE NEW DOCTRINE NOW LABELS THE MAIN THREAT TO STABILITY FOR ONE THING THE FOCUS IS STILL LARGELY ON HOW LOCAL WAR CAN ESCALATE INTO GENERAL CONFLICT IN A VEILED REFERENCE TO NATO THE RISK THAT LOCAL CONFLICT MIGHT BE USED AS AN EXCUSE BY OTHER STATES TO LAUNCH A GENERAL WAR IS DEEMED CONSIDERABLE FOR THIS REASON SUCH CONFLICTS MUST BE LOCALIZED AND SUPPRESSED AS QUICKLY AS POSSIBLE THE ARMY MUST BE FREE TO OPERATE OFFENSIVELY OR DEFENSIVELY AS IT SEES FIT AND FORCES MUST BE TRAINED TO FIGHT IN ANY SCENARIO WHERE WAR IS UNLEASHED AND CONDUCTED AMID THE MASSIVE USE OF MODERN AND FUTURE WEAPONS THE DISTINCTLY LOCAL ASPECTS OF THE DOCTRINE HAVE ALSO RAISED EYEBROWS SUPPRESSION OF THE RIGHTS FREEDOMS AND LEGITIMATE INTERESTS OF THE 25MILLIONSTRONG RUSSIAN DIASPORA IN THE FORMER SOVIET UNION IS DEFINED NOT AS A SECURITY CONCERN BUT AS A MILITARY THREAT TO RUSSIA ITSELF RUSSIA RESERVES THE RIGHT TO MAINTAIN FORCES ABROAD AND TO TERMINATE ANY UNLAWFUL ARMED VIOLENCE WITHIN THE CIS AS A WHOLE ITS NOTION OF PEACEKEEPING IN CONTRAST TO WESTERN PRACTICE CALLS FOR USING FORCE TO CREATE THE CONDITIONS FOR PEACE RATHER THAN SIMPLY TO ENFORCE A PEACE ONCE IT HAS BEEN REACHED THE DOCTRINE SEEMS TO GIVE RUSSIA'S FOREIGN POLICY A SET OF MILITARY TEETH BUT THE QUESTION REMAINS OF THE EXTENT TO WHICH THE DEFENSE ESTABLISHMENT IS CREATING ITS OWN FOREIGN POLICY ACCORDING TO RUSSIAN FOREIGN MINISTRY SOURCES THE DOCTRINE INCLUDING ITS POLITICAL ASPECTS WAS DRAWN UP BY THE DEFENSE MINISTRY AND GENERAL STAFF WITHOUT THE COLLABORATION OF ANY CIVILIAN AGENCY IT WAS THEN RUBBERSTAMPED BY THE SECURITY COUNCIL AT BORIS YELTSIN'S INSISTENCE ANTAGONISM BETWEEN THE DEFENSE MINISTRY AND THE FOREIGN MINISTRY ON THE NEAR ABROAD ISSUES IS NO SECRET YET THAT ANTAGONISM AROSE MORE OUT OF A POLICY VACUUM THAN A POLICY DIFFERENCE FROM THE COLLAPSE OF THE SOVIET UNION TO THE END OF 1992 THE FOREIGN MINISTRY FOCUSED ITS EFFORTS ON THE WEST THE ARMY WITH SEVERAL HUNDRED THOUSAND TROOPS IN FORMER SOVIET REPUBLICS QUICKLY FOUND ITSELF MAKING POLICY BY DEFAULT FOR ITS PART THE FOREIGN MINISTRY LACKED THE RESOURCES TO DEAL WITH WHAT UNTIL RECENTLY HAD BEEN INTERNAL MATTERS IT ALSO LACKED THE INCLINATION MOST FOREIGN MINISTRY OFFICIALS BELIEVED THAT THE ECONOMIC DEPENDENCIES OF THE OLD SOVIET SYSTEM WOULD PULL THE FORMER REPUBLICS BACK IN ORBIT AROUND MOSCOW LITTLE POLICY WOULD BE NEEDED STILL LESS COERCION THE DASHING OF THESE HOPES HAS MADE THE FOREIGN MINISTRY MORE REALISTIC AND HAS NARROWED POLICY DISAGREEMENTS WITH THE ARMY A DECEMBER 1992 FOREIGN MINISTRY DOCUMENT ARGUES THAT RUSSIA MUST BE THE LEADER OF STABILITY AND SECURITY ON THE ENTIRE TERRITORY OF THE FORMER USSR AND THAT IT SHOULD PURSUE A DIVIDE AND INFLUENCE POLICY USING FORCE WHERE NECESSARY TO ACHIEVE FIRM GOOD NEIGHBORLINESS DISAGREEMENTS NONETHELESS REMAIN TO THE AUTHORS OF THE MILITARY DOCTRINE WESTERN UNTRUSTWORTHINESS IS AXIOMATIC TO RUSSIA'S DIPLOMATS THE WEST IS A PARTNER WHOSE LONGING FOR STABILITY CAN BE USED TO STRENGTHEN RUSSIA'S HOLD OVER THE NEAR ABROAD THE ARMY BELIEVES THAT RUSSIA AS A GREAT POWER SHOULD NOT SHY AWAY FROM BRANDISHING SWORDS OR USING THEM THE FOREIGN MINISTRY BELIEVES THAT RUSSIA MUST ACHIEVE ITS AIMS WITH REFERENCE TO UNIVERSAL PRINCIPLES EVEN IF IT DOES NOT ALWAYS ABIDE BY THEM FOR ALL THESE DISAGREEMENTS THE ARMY HAS BEEN THE BAD COP IN A LIBERAL FOREIGN POLICY IF MILITARY HARDLINERS DID NOT EXIST THEY WOULD HAVE TO BE INVENTED BEFORE THIS MONTH'S ELECTIONS THE REAL FOIL TO THE ARMY WAS THE ECONOMIC RADICALS IN MR YELTSIN'S ENTOURAGE FOR THE SIMPLE REASON THAT SHOCK THERAPY WOULD QUICKLY BANKRUPT MOST OF RUSSIA'S REMAINING DEFENSE ENTERPRISES AFTER THE ELECTION THESE RADICALS ARE SERIOUSLY WEAKENED YET IN THE FUTURE THE MILITARY WILL STILL BE FOILED BY ECONOMIC REALITY SHOCK THERAPY OR NOT THE ARMY IS LIKELY IN BISMARCK'S PHRASE TO BE LEFT WITH A BIG APPETITE AND POOR TEETH YET THOSE LIKE THE BALTS WHO HAVE NO TEETH AT ALL WILL DERIVE LITTLE COMFORT FROM THAT MR SHERR IS A LECTURER IN INTERNATIONAL RELATIONS AT LINCOLN COLLEGE OXFORD AND RESEARCH FELLOW AT THE CONFLICT STUDIES RESEARCH CENTER SANDHURST 9312170134 931217 INTERNATIONAL JAPANESE ECONOMY NEEDS QUICK FIXES LONGTERM OVERHAUL PANEL CONCLUDES BY JATHON SAPSFORD AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S SAGGING ECONOMY NEEDS SOME SHORTTERM FIXES BUT ALSO A MAJOR LONGTERM OVERHAUL ACCORDING TO A GOVERNMENT ADVISORY PANEL'S REPORT THE INFLUENTIAL PANEL OF EXPERTS COMMISSIONED BY PRIME MINISTER MORIHIRO HOSOKAWA IN AUGUST PROPOSED TAX REDUCTIONS REALESTATE MARKET REFORMS AND REDUCTIONS IN RED TAPE AS AN IMMEDIATE SOLUTION TO A GRINDING DOWNTURN IN JAPAN THE REPORT'S MAIN THEME HOWEVER IS THE NEED FOR A LONGTERM SHIFT IN ECONOMIC POLICY FOCUS TO CONSUMERS FROM BUSINESS THE REPORT ENVISAGES A TOUGHER FAIRTRADE AUTHORITY AND OTHER MEASURES TO LOWER PRICES FOR AVERAGE CONSUMERS EARLIER EFFORTS TO MAKE SUCH CHANGES HAVE FAILED BECAUSE OF OPPOSITION FROM BUREAUCRATS AND ENTRENCHED BUSINESS INTERESTS THIS TIME THOUGH THE PLAN CALLS FOR THE CREATION OF A POWERFUL QUASIGOVERNMENTAL AUTHORITY TO ENFORCE REFORM NOW ALL EYES ARE ON MR HOSOKAWA AFTER WINNING AN EMOTIONALLY CHARGED BATTLE TO ALLOW SOME RICE IMPORTS THE GOVERNMENT THIS WEEK SUCCEEDED IN EXTENDING PARLIAMENT UNTIL JAN 29 ALTHOUGH PASSING A CONTROVERSIAL POLITICALREFORM BILL REMAINS A TOP PRIORITY MR HOSOKAWA WILL HAVE TO DEVOTE SOME OF THE TIME HE HAS LEFT TO THE ECONOMY CABINET MEMBERS ARE SAYING ECONOMIC ISSUES WILL INDEED BE A PRIORITY AND MR HOSOKAWA SAID THE PANEL'S RECOMMENDATIONS ARE LIKELY TO BE AT THE CENTER OF THE NEXT BUDGET FOR THE YEAR BEGINNING APRIL 1 LAWMAKERS WILL HAMMER OUT THE BUDGET OVER THE NEXT THREE MONTHS BUT MEDIA REPORTS SPECULATE THAT THE CURRENT ECONOMIC SLUMP WILL PROMPT MR HOSOKAWA TO ANNOUNCE AT LEAST AN INCOMETAX CUT BY THE END THIS MONTH THE REPORT FELL SHORT OF RECOMMENDING HOW BIG THE TAX CUT SHOULD BE THE FINANCE MINISTRY WANTS TO KEEP THE CUT MODEST FIVE TRILLION YEN 4553 BILLION IS THE LOW END OF THE RANGE UNDER CONSIDERATION THEN MAKE UP FOR THE LOST REVENUE WITH AN INCREASE IN JAPAN'S SALES TAX WITHIN A YEAR THE REPORT'S AUTHORS A TEAM OF EXPERTS LED BY GAISHI HIRAIWA CHAIRMAN OF THE POWERFUL BUSINESS FEDERATION KEIDANREN ARE FACING SOME SKEPTICISM THERE HAS BEEN A LOT OF NOISE ABOUT THIS REPORT SAYS TORU KUSUKAWA CHAIRMAN OF FUJI RESEARCH INSTITUTE CORP A PRIVATE RESEARCH GROUP BUT THE EXTENT TO WHICH WE CAN EXPECT CONCRETE RESULTS REMAINS TO BE SEEN STILL THE PLAN'S SUPPORTERS POINT TO THE CLAUSE THAT CALLS FOR A POWERFUL THIRD PARTY TO MONITOR CHANGES PROVIDING THE GOVERNMENT ACTUALLY PUSHES FOR THE CREATION OF SUCH AN INSTITUTION THE CURRENT PLAN WILL BE EFFECTIVE THEY SAY THE PANEL RECOMMENDS LOWERING THE COST OF LIVING IN JAPAN BY DEREGULATING THE DISTRIBUTION SYSTEM AND CUTTING OUT MIDDLEMEN THE PLAN ALSO CALLS FOR THE CREATION OF A MORE FLEXIBLE LABOR MARKET SO THAT EMPLOYEES AND COMPANIES ARE NOT BOUND BY JAPAN'S TRADITIONAL LIFETIME EMPLOYMENT MARKET THE REPORT ALSO CALLED FOR A GREATER EFFICIENCY IN JAPAN'S PROTECTED AGRICULTURAL MARKETS A REDUCTION IN THE RED TAPE INVOLVED IN IMPORTING FOREIGN GOODS AND AN EXPANSION OF JAPAN'S INFORMATION AND TELECOMMUNICATIONS INDUSTRY TO CREATE MORE SERVICE JOBS 9312170133 931217 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 ACT III BROADCASTING INC 100 MILLION OF SENIOR SUBORDINATED NOTES DUE DEC 15 2003 PRICED AT PAR TO YIELD 9625 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP CANANDAIGUA WINE CO 130 MILLION OF SENIOR SUBORDINATED NOTES DUE DEC 15 2003 PRICED AT PAR TO YIELD 875 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB1 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CHASE SECURITIES INC CHRYSLER FINANCIAL CORP 100 MILLION OF FLOATINGRATE NOTES DUE DEC 27 1995 PRICED AT 99904 ACCORDING TO MCM CORPORATEWATCH THE COUPON WILL PAY AND FLOAT QUARTERLY AT 30 BASIS POINTS OVER LONDON INTERBANK OFFERED RATE FOR A YIELD OF 35 BASIS POINTS OVER LIBOR THE FIRST COUPON WILL BE SET DEC 23 RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CHRYSLER IS A UNIT OF CHRYSLER CORP FEDERAL HOME LOAN BANK SYSTEM 345 MILLION OF NOTES DUE DEC 23 1996 PRICED INITIALLY AT PAR TO YIELD 473 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR ONE YEAR WAS PRICED AT A SPREAD OF 18 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO NACOLAH GROUP INC 75 MILLION OF SENIOR NOTES DUE DEC 1 2003 PRICED AT PAR TO YIELD 95 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLEB1 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP SEQUA CORP 300 MILLION OF DEBT IN TWO PARTS PRICED BY UNDERWRITERS LED BY BEAR STEARNS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 125 MILLION OF SENIOR NOTES DUE DEC 15 2001 WAS PRICED AT PAR TO YIELD 875 THE NOTES NONCALLABLE FOR FOUR YEARS ARE RATED SINGLEB1 BY MOODY'S AND DOUBLEB BY S&P THE SECOND TRANCHE 175 MILLION OF SENIOR SUBORDINATED NOTES DUE DEC 12 2003 WAS PRICED AT PAR TO YIELD 9375 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S AND SINGLEBPLUS BY S&P ROADMASTER INDUSTRIES INC 100 MILLION OF SENIOR SUBORDINATED NOTES DUE JULY 15 2002 PRICED AT PAR TO YIELD 1175 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JEFFERIES & CO SOUTHERN CALIFORNIA EDISON CO 170 MILLION OF DEBENTURES DUE DEC 15 1998 SOLD THROUGH A COMPETITIVE BID WON BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE DEBT WAS PRICED AS 56S AT 99878 TO YIELD 5628 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 44 BASIS POINTS ABOVE TREASURYS THE DEBT IS RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P SOUTHERN CALIFORNIA EDISON IS A UNIT OF SCE CORP EW SCRIPPS CO FOUR MILLION CLASS A COMMON SHARES PRICED AT 26 EACH SOLD BY THE EDWARD W SCRIPPS TRUST CONTROLLING SHAREHOLDER ACCORDING TO THE COMPANY FACTORY STORES OF AMERICA INCFOUR MILLION COMMON SHARES PRICED AT 24 EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC KENNAMETAL INC 17 MILLION COMMON SHARES PRICED AT 39375 EACH ACCORDING TO THE COMPANY ABOUT 14 MILLION SHARES WILL BE SOLD IN THE US UNDEWRITERS ARE GOLDMAN SACHS & CO AND MERRILL LYNCH & CO OAK INDUSTRIES INC16 MILLION COMMON SHARES PRICED AT 1450 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC HEALTH & REHABILITATION PROPERTIES TRUST NINE MILLION COMMON SHARES PRICED AT 1450 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP NEW YORK STATE URBAN DEVELOPMENT CORP 216 MILLION OF SERIES 4 CORRECTIONAL CAPITAL FACILITIES REVENUE BONDS PRICED BY A MERRILL LYNCH & CO GROUP TO YIELD FROM 35 IN 1995 TO 579 IN 2023 MOODY'S RATED THE BONDS BAA1 S&P ASSIGNED A TRIPLEB RATING AND FITCH INVESTORS SERVICE INC ASSIGNED A SINGLEA RATING FEDERAL HOME LOAN MORTGAGE CORP 15 BILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES GOLD 1661 IS BACKED BY FREDDIE MAC GOLD 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS GREEN TREE FINANCIAL CORP 725 MILLION OF MANUFACTURED HOUSING ASSETBACKED CERTIFICATES PRICED IN SEVEN PARTS BY UNDERWRITERS LED BY LEHMAN BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES IN THE ISSUE GREEN TREE FINANCIAL CORP 19934 WERE ISSUED THROUGH A SENIOR/SUBORDINATE STRUCTURE WITH FIVE SENIOR CLASSES AND TWO SUBORDINATE THE SENIOR CLASSES WERE RATED DOUBLEA2 BY MOODY'S THE 240 MILLION OF CLASS A1 CERTIFICATES WITH A 205YEAR AVERAGE LIFE WAS PRICED AS 405S AT 9996875 TO YIELD 4915 A 65BASISPOINT SPREAD ABOVE THE TREASURY'S WHENISSUED TWOYEAR NOTE THE 110 MILLION OF CLASS A2 CERTIFICATES WITH A 503YEAR AVERAGE LIFE WAS PRICED AS 585S AT 9996875 TO YIELD 5923 A 72BASISPOINT SPREAD ABOVE THE TREASURY'S WHENISSUED FIVEYEAR NOTE THE 75 MILLION OF CLASS A3 CERTIFICATES WITH A 701YEAR AVERAGE LIFE WAS PRICED AS 625S AT 99875 TO YIELD 6354 AN 82BASISPOINT SPREAD ABOVE THE TREASURY'S 85 NOTES OF NOVEMBER 2000 THE 1117 MILLION OF CLASS A4 CERTIFICATES WITH A 1017YEAR AVERAGE LIFE WAS PRICED AS 66S AT 9996875 TO YIELD 6696 A 90BASISPOINT SPREAD ABOVE THE TREASURY'S 10YEAR NOTE THE 1088 MILLION OF CLASS A5 CERTIFICATES WITH A 1456YEAR AVERAGE LIFE WAS PRICED AS 705S AT 99625 TO YIELD 7196 A 140BASISPOINT SPERAD ABOVE THE TREASURY'S 10YEAR NOTE THE 508 MILLION OF CLASS B1 CERTIFICATES WITH A 926YEAR AVERAGE LIFE WAS PRICED AS 72S AT 9975 TO YIELD 7347 THE CERTIFICATES WERE RATED BAA3 BY MOODY'S LEHMAN CAPITAL CORP 147 MILLION OF HOME EQUITY LOAN ASSETBACKED CERTIFICATES PRICED TO FLOAT 33 BASIS POINTS ABOVE THE ONEMONTH LIBOR OR AT 358 ACCORDING TO MCM CORPORATEWATCH THE ISSUE LEHMAN HOME EQUITY LOAN TRUST 19933 HAS AN AVERAGE LIFE OF 319 YEARS THERE IS NO INTERESTRATE CAP MOODY'S AND S&P RATED THE CERTIFICATES TRIPLEA ON A 100 INSURANCE GUARANTEE PROVIDED BY CAPITAL MARKETS ASSURANCE CORP THE ISSUE IS BEING SOLD BY LEHMAN BROTHERS INC EKSPORTFINANS AS NORWAY AGENCY 200 MILLION CANADIAN DOLLARS OF 6 EUROBONDS DUE DEC 20 1999 AT ISSUE PRICE 100302 VIA SCOTIA MCLEOD INC REOFFERED AT 98702 TO YIELD 627 A SPREAD OF 30 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT NOTE FEES 1875 GRUPO TRIBASA SA DE CV MEXICO 100 MILLION OF 77 EUROBONDS DUE DEC 22 2000 AT ISSUE AND FIXED REOFFER PRICE 994 VIA LEHMAN BROTHERS INTERNATIONAL BONDS PRICED TO YIELD A SPREAD OF 230 BASIS POINTS ABOVE COMPARABLE US TREASURY GUARANTOR TRITURADOS BASALTICOS Y DERIVADOS SA DE CV FEES ONE INTEREST PAYABLE SEMIANNUALLY FIFTH MEXICAN ACCEPTANCE CORP SPECIALPURPOSE VEHICLE 75 MILLION OF MORTGAGEBACKED EUROBONDS IN TWO CLASSES DUE DEC 29 1998 VIA KIDDER PEABODY SECURITIES & CO ORIGINATOR OF MORTGAGES GRUPO SITUR SA DE CV AND BONDS GUARANTEED AGAINST PREPAYMENT CLASS A NOTES OF 60 MILLION WITH 8 COUPON ISSUED AND REOFFERED AT 955 TO YIELD A SPREAD OF 390 BASIS POINTS OVER FIVEYEAR US TREASURY CLASS A NOTES GUARANTEED BY GRUPO SIDEK SA AND GRUPO SITUR SA DE CV CLASS B NOTES OF 15 MILLION CARRY 9 COUPON AND ISSUED AND REOFFERED AT 9545 TO YIELD SPREAD OF 500 BASIS POINTS OVER FIVEYEAR US TREASURY FEES UNDISCLOSED INTEREST PAYABLE SEMIANNUALLY NORCHEM LEASING SAARRENDAMENTO MERCANTIL US PARENT 50 MILLION OF 9 EUROBONDS DUE DEC 23 1996 AT ISSUE AND FIXED REOFFER PRICE 995243 VIA LEAD UNDERWRITER CHEMICAL INVESTMENT BANK LTD BONDS PRICED TO YIELD MARGIN OF 4625 BASIS POINTS OVER COMPARABLE US TREASURY FEES ONE INTEREST PAYABLE SEMIANNUALLY MITSUI & CO JAPAN 10 BILLION YEN OF 285 EUROBONDS DUE APRIL 27 1999 AT ISSUE PRICE 101725 VIA SAKURA FINANCE INTERNATIONAL LTD REOFFERED AT 10025 TO YIELD 28 FEES 1875 WORLD BANK SUPRANATIONAL 100 MILLION MARKS OF SWAPRATE LINKED EUROBONDS DUE JAN 19 1999 AT ISSUE PRICE 100825 VIA MORGAN STANLEY GMBH REOFFERED AT 9945 AND OFFER COUPON OF 6125 FOR FIRST YEAR THEREAFTER COUPON 30 LESS FIVE TIMES FIVEYEAR MARK SWAP RATE AS QUOTED ON TELERATE PAGE 42280 FEES 1625 9312170132 931217 INTERNATIONAL TANAKA THE KING OF JAPAN'S POLITICS DIES OF PNEUMONIA BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO KAKUEI TANAKA THE KING OF POSTWAR JAPANESE POLITICS DIED OF PNEUMONIA THURSDAY MARKING THE SYMBOLIC END OF AN ERA THE 75YEAROLD FORMER PRIME MINISTER WAS A PIONEER OF THE NATION'S NOTORIOUS MONEY POLITICS WHILE HE LOST HIS PERSONAL CLOUT NEARLY A DECADE AGO AFTER SUFFERING A STROKE HIS PASSING DOMINATED THE EVENING NEWS SHOWS AND TOKYO NEWSPAPERS A TESTIMONY TO HIS ENDURING IMPACT THE POLITICAL REFORMS CURRENTLY BEING DEBATED IN JAPAN'S PARLIAMENT ARE A RESPONSE TO TWO DECADES OF SCANDALS A PERIOD THAT STARTED WITH MR TANAKA'S 1976 ARREST AND LATER CONVICTION FOR TAKING BRIBES FROM LOCKHEED CORP AS THE ARCHITECT OF JAPAN'S RAPID GROWTH THROUGH PUBLIC WORKS IN THE 1970S AND THE MAN WHO STRENGTHENED THE IRON TRIANGLE OF CLOSE TIES AMONG POLITICIANS BUREAUCRATS AND BIG BUSINESS MR TANAKA WAS A UNIQUELY JAPANESE COMBINATION OF FRANKLIN D ROOSEVELT AND BOSS TWEED THE FALL OF MR TANAKA'S LIBERAL DEMOCRATIC PARTY THIS PAST SUMMER AFTER FOUR DECADES IN POWER BROUGHT THE COLLAPSE OF HIS POLITICAL MACHINE MR TANAKA A FORMER CONSTRUCTIONCOMPANY EXECUTIVE FOSTERED THE CLOSE TIES BETWEEN THE LDP AND CONTRACTORS THAT THIS YEAR SPAWNED A MASSIVE PORKBARREL/BRIBERY SCANDAL YET THE VERY POLITICIANS NOW LEADING THE CHARGE AGAINST MR TANAKA'S EMPIRE ARE ALSO TANAKA PROTEGES THE TWO MOST POWERFUL MEN IN THE NEW ANTILDP GOVERNMENT PRIME MINISTER MORIHIRO HOSOKAWA AND HIS CHIEF STRATEGIST ICHIRO OZAWA STARTED THEIR CAREERS IN THE SOCALLED TANAKA FACTION OF THE LDP MR HOSOKAWA IS IN SOME WAYS REMINISCENT OF THE PUBLIC MR TANAKA AT 55 HE IS JAPAN'S SECONDYOUNGEST PREMIER SINCE THE WAR AFTER MR TANAKA WHO TOOK OFFICE IN 1972 AT THE AGE OF 54 MR HOSOKAWA'S HIGH PUBLIC SUPPORT RATINGS HAVE BEEN VIRTUALLY UNSEEN SINCE THE POPULIST MR TANAKA'S REIGN MR OZAWA CARRIES ON THE BACKROOM POWERBROKERING TRADITIONS OF MR TANAKA WHO CONTROLLED JAPANESE POLITICS FOR MORE THAN A DECADE AFTER SCANDAL CUT SHORT HIS TERM AS PRIME MINISTER AND EVEN AFTER HIS ARREST FROM THE TIME I WON MY FIRST ELECTION I WAS UNDER THE LEADERSHIP OF MR TANAKA AND HE WORRIED ABOUT MY AFFAIRS AS IF HE WERE MY FATHER MR OZAWA SAID IN A HANDWRITTEN STATEMENT RELEASED BY HIS OFFICE THE ONLY PATH LEFT NOW IS TO EMPLOY ALL ENERGY INTO POLITICS FOR THE SAKE OF JAPAN WHILE REFLECTING ON MR TANAKA'S TEACHINGS BORN INTO A POOR FAMILY MR TANAKA NEVER FINISHED HIGH SCHOOL BUT MADE A SIZABLE PERSONAL FORTUNE BEFORE ESSENTIALLY BUYING HIS WAY INTO POLITICS HIS PORKBARREL PLATFORM INCLUDED BRINGING SUPERHIGHWAYS AND BULLET TRAINS TO SPARSELY POPULATED REGIONS OF HIS DISTRICT MR TANAKA WAS SENTENCED TO FOUR YEARS IN PRISON IN THE LOCKHEED AFFAIR BUT HE NEVER SERVED PENDING AN APPEAL TO THE SUPREME COURT THE CASE WAS NEVER CONCLUDED 9312170131 931217 BRAZIL'S FOREIGN RESERVES RISE BRASILIA BRAZIL BRAZIL'S FOREIGN RESERVES CLIMBED 21 BILLION IN OCTOBER TO 29 BILLION THE CENTRAL BANK SAID THE BANK SAID AN ALTERNATE MEASURE OF BRAZIL'S FOREIGN RESERVES WHICH DISCOUNTS LIQUID INTERNATIONAL CURRENCY AMOUNTED TO 223 BILLION WITH A SIMILAR INCREASE OF 21 BILLION THIS RESULT REFLECTS ACQUISITION BY THE CENTRAL BANK OF EXCESS FOREIGN EXCHANGE GENERATED IN THE FREE EXCHANGE RATE MARKET THE MONETARY AUTHORITY SAID IN A STATEMENT THE CENTRAL BANK WAS APPARENTLY REFERRING TO THE VAST AMOUNTS OF FOREIGN EXCHANGE ENTERING BRAZIL THROUGH THE STOCK MARKETS BRAZIL'S RESERVES DECLINED IN SEPTEMBER AFTER A STEADY RISE THROUGHOUT THE YEAR AT THE END OF JANUARY BRAZIL'S FOREIGN RESERVES STOOD AT 233 BILLION 9312170130 931217 WHO'S NEWS HARVARD INTERNATIONAL TECHNOLOGIES LTD HARVARD INTERNATIONAL TECHNOLOGIES LTD VANCOUVER BRITISH COLUMBIA MARC R CHOUINARD 36 YEARS OLD WAS NAMED PRESIDENT AND A DIRECTOR SUCCEEDING EDGAR F KAISER JR WHO WILL REMAIN CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF THE EXECUTIVE COMMITTEE MR CHOUINARD WAS PRESIDENT AND CHIEF OPERATING OFFICER OF DEPARTMENT STORE RETAILER WOODWARD'S LTD 9312170129 931217 BUSINESS BRIEF FIRST INTERSTATE BANCORP PACT SET TO BUY CHASE BANKS IN ARIZONA FOR 102 MILLION FIRST INTERSTATE BANCORP LOS ANGELES SAID IT WILL PAY 102 MILLION FOR THE ARIZONA BANKS OF NEW YORKBASED CHASE MANHATTAN CORP UNDER THE AGREEMENT FIRST INTERSTATE BANK OF ARIZONA WILL ACQUIRE CHASE BANK OF ARIZONA AND ITS SUBSIDIARY CHASE TRUST CO SUBJECT TO REGULATORY CLEARANCE BY THE FIRST HALF OF 1994 THE MOVE MARKS FIRST INTERSTATE'S FIRST EXPANSIONIST FORAY INTO THE STATE SINCE GETTING BURNED BY ARIZONA'S REALESTATE COLLAPSE IN THE LATE 1980S THE ACQUISITION WOULD GIVE FIRST INTERSTATE 23 OF THE ARIZONA MARKET UP FROM 22 CONCENTRATED IN THE NOW BOOMING PHOENIX AND SCOTTSDALE AREAS 9312170128 931217 KAWASAKI STEEL'S CHINA STUDY TOKYO KAWASAKI STEEL ONE OF JAPAN'S LARGEST STEELMAKERS SAID IT IS CONSIDERING PROVIDING TECHNICAL SUPPORT FOR A CHINESE MAKER OF TIN PLATES THE COMPANY IS CONSIDERING PROVIDING ENGINEERS AND TECHNICAL SUPPORT TO CHINA'S STATERUN WUXI NO 3 IRON & STEEL WORKS FACTORY WHICH MAKES AMONG OTHER PRODUCTS TIN PLATES FOR USE IN FOOD TINS AND CANS THE FEASIBILITY STUDY IS DUE TO BE COMPLETED BY APRIL A SPOKESMAN SAID KAWASAKI ALONG WITH OTHER JAPANESE STEELMAKERS CURRENTLY EXPORTS TIN PLATES TO CHINA NO JAPANESE STEELMAKER HAS A DIRECT INVESTMENT IN CHINA'S TIN SECTOR BUT NIPPON STEEL ONE OF KAWASAKI'S MAIN COMPETITORS LAST WEEK ANNOUNCED THAT IT IS STUDYING THE POSSIBILITY OF DIRECT INVESTMENT IN CHINA'S TIN SECTOR 9312170127 931217 TECHNOLOGY TELECOMMUNICATIONS COMPANIES OFFER FRAMEWORK FOR WIDENING COMPETITION BY DANIEL PEARL AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON CABLETELEVISION AND TELEPHONE INDUSTRY LEADERS SAID THEY ARE WILLING TO OPEN THEIR MARKETS TO COMPETITION IN A SCHEME THAT WOULD ALLOW COMPETITORS TO HOOK INTO LOCAL TELEPHONE SYSTEMS AND REQUIRE THEM TO HELP SUBSIDIZE RURAL PHONE USERS THE GENERAL PLAN EMBRACED BY A GROUP OF CABLETV LONGDISTANCE AND LOCAL TELEPHONE COMPANIES AND SOME BIG TELEPHONE USERS ALSO WOULD GIVE PHONE COMPANIES GREATER FREEDOM TO CUT PRICES IN RESPONSE TO COMPETITION BUT IT WOULD IMPOSE PRICE FLOORS TO PROTECT THE NEW COMPETITORS AND PRICE CEILINGS TO PROTECT CONSUMERS THE POLICY PAPER WAS RELEASED YESTERDAY AFTER SIX MONTHS OF DISCUSSION LED BY THE WASHINGTONBASED COUNCIL ON COMPETITIVENESS A PRIVATE GROUP OF CHIEF EXECUTIVES THE COUNCIL HAS NO PLANS TO FLESH OUT THE DETAILS YET BUT IS PRESENTING ITS REPORT TO LAWMAKERS AND ADMINISTRATION OFFICIALS THIS WEEK AS A FRAMEWORK FOR THEIR DELIBERATIONS JOHN YOUNG FORMER CHIEF EXECUTIVE OF HEWLETTPACKARD CO AND CHARLES VEST PRESIDENT OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY LED THE COUNCIL'S 21ST CENTURY INFORMATION INFRASTRUCTURE PROJECT WHICH ALSO INVOLVED COMPUTER COMPANIES BROADCASTERS AND UNIONS THE REPORT PARALLELS AN EFFORT BY THE CLINTON ADMINISTRATION WHICH IS WORKING TO INTRODUCE LEGISLATION EARLY NEXT YEAR TO LOOSEN COMPETITIVE BARRIERS IN TELECOMMUNICATIONS BUT THE ADMINISTRATION HAS YET TO WORK OUT THORNY DETAILS ON ISSUES BOUND TO MAKE SOMEBODY UNHAPPY AS THE COUNCIL'S REPORT MAKES CLEAR COMPANIES PARTICIPATING IN THE COUNCIL'S DISCUSSIONS INCLUDING AMERITECH CORP TELECOMMUNICATIONS INC AND AMERICAN TELEPHONE & TELEGRAPH CO COULDN'T COME TO AN AGREEMENT ON WHETHER TELEPHONE COMPANIES OR CABLE COMPANIES SHOULD HAVE TO PROVE THEY HAVE SUBSTANTIAL COMPETITION IN THEIR OWN MARKETS BEFORE THEY GET ACCESS TO SOMEBODY ELSE'S LONGDISTANCE CARRIERS FAVOR SUCH A TEST WHILE REGIONAL TELEPHONE COMPANIES SAY IT WOULD BE IMPRACTICAL ALSO UNRESOLVED ARE THE CONTENTIOUS ISSUES OF HOW TELEPHONE COMPANIES WOULD BE COMPENSATED FOR CONNECTIONS TO THEIR NETWORKS AND WHETHER VIDEO ENTERTAINMENT AS WELL AS TELEPHONE SERVICE WOULD BE GUARANTEED TO ALL AMERICANS ADMINISTRATION OFFICIALS SAID THEY HAVEN'T YET DECIDED ON AN APPROACH TO THE QUESTION OF HOW TO ENSURE SOCALLED UNIVERSAL SERVICE WHICH WAS THE SUBJECT OF COMMERCE DEPARTMENT HEARINGS THAT BEGAN YESTERDAY IN ALBUQUERQUE NM CURRENTLY TELEPHONE COMPANIES SAY THEY SUBSIDIZE RESIDENTIAL AND RURAL USERS WITH REVENUE FROM THEIR MORE LUCRATIVE BUSINESS SERVICE AND THEY DEMAND HIGH COMPENSATION FROM COMPETITORS WHO TRY TO PICK OFF BUSINESS USERS UNDER THE COUNCIL'S PLAN COMPETITORS WOULD CONTRIBUTE TO A SUBSIDY FUND BUT INSTEAD OF GOING TO TELEPHONE COMPANIES THE SUBSIDIES WOULD BE PAID DIRECTLY TO RURAL CUSTOMERS MARTIN TASCHDJIAN A US WEST INC OFFICIAL WHO PARTICIPATED IN THE COUNCIL'S DISCUSSIONS SAID THE REPORT SHOWS THAT QUESTIONS OF PRICING COMPETITION INTERCONNECTING NETWORKS AND UNIVERSAL ACCESS HAVE TO BE SOLVED SIMULTANEOUSLY TO MOVE COMPETITORS CLOSER TO AN AGREEMENT MEANWHILE JOHN MALONE CHIEF EXECUTIVE OF TCI SOUGHT TO ASSURE CONGRESS THAT THE PROPOSED ACQUISITION OF HIS COMPANY BY BELL ATLANTIC CORP WOULD NOT POSE ANTITRUST PROBLEMS THIS IS GOING TO BE A COMPETITIVE ARENA NOT A MONOPOLY ARENA HE TOLD A SKEPTICAL SEN HOWARD METZENBAUM D OHIO WHO SAID TCI'S POSITION IN THE INDUSTRY GIVES IT THE POWER TO RAISE PRICES AND BLOCK NEW COMPETITORS WITH 65 MILLION SUBSCRIBERS IN THE INDUSTRY THE 13 MILLION OR SO THAT TCI HAS AN INTEREST IN IS NOT A MAKEITORBREAKIT PROPOSITION FOR ANY PROGRAMMER MR MALONE SAID MR METZENBAUM SAID MR MALONE WAS TRYING TO PLAY DOWN TCI'S IMPORTANCE AND INFLUENCE IN THE CABLETV INDUSTRY BY HAVING PEOPLE THINK THAT YOU WERE JUST A LITTLE GUY ON THE BLOCK AND YOU'RE BEING PUSHED AROUND MR MALONE REPLIED WE'RE A BIG FISH IN A SMALL POND SENATOR AND WE'RE ABOUT TO MERGE WITH THE OCEAN AND THERE ARE BIG BIG SHARKS OUT THERE 9312170126 931217 PRUDENTIAL PLANNING TO MAINTAIN ITS RATES ON DIVIDEND PAYOUTS NEWARK NJ PRUDENTIAL INSURANCE CO OF AMERICA WILL MAINTAIN THE DIVIDEND RATES IT PAYS LIFE INSURANCE POLICYHOLDERS IN 1994 IN CONTRAST TO OTHER MAJOR INSURERS WHO HAVE CUT THEIR RATES LAST MONTH METROPOLITAN LIFE INSURANCE CO AND NORTHWESTERN MUTUAL LIFE INSURANCE CO ANNOUNCED LOWER RATES BECAUSE YIELDS ON THEIR INVESTMENTS HAVE FALLEN MORE RECENTLY THEY WERE JOINED BY JOHN HANCOCK MUTUAL LIFE INSURANCE CO NEW YORK LIFE INSURANCE CO GUARDIAN LIFE INSURANCE CO OF AMERICA AND SEVERAL OTHER MAJOR POLICYHOLDEROWNED INSURERS PRUDENTIAL CITED STRONG EARNINGS AS THE REASON FOR MAINTAINING ITS RATES CHIEF FINANCIAL OFFICER EUGENE O'HARA CONCEDED THAT PRUDENTIAL'S INVESTMENT RETURNS HAVE FALLEN BUT HE SAID STRONG EARNINGS FROM ITS HOME MORTGAGE BUSINESS AS WELL AS FROM PRUDENTIAL SECURITIES MADE UP FOR FALLING INVESTMENT RESULTS PRUDENTIAL SECURITIES LIKE OTHER BROKERAGE FIRMS IS HAVING A STRONG YEAR DESPITE INTERNAL PROBLEMS PRUDENTIAL SECURITIES RECENTLY AGREED TO PAY AT LEAST 371 MILLION IN FINES AND RESTITUTION ON LIMITED PARTNERSHIPS PRUDENTIAL IS ON TRACK TO INCREASE ITS NET WORTH BY 1 BILLION THIS YEAR INSURANCE ANALYSTS SAY WE HAVE STRONG OPERATING ASSETS IN ADDITION TO OUR INVESTMENTS MR O'HARA SAID BUT INSURANCE EXPERTS SAY PRUDENTIAL MIGHT BE MAINTAINING ITS DIVIDENDS TO BOLSTER ITS IMAGE FOLLOWING THE MONTHS OF BAD PRESS ABOUT PRUDENTIAL SECURITIES THEY'VE GOTTEN SUCH A SHELLACKING IN RECENT MONTHS SAID KURT CERULLI A PRINCIPAL WITH CERULLI ASSOCIATES A BOSTON FINANCIAL CONSULTING FIRM IT WOULDN'T SURPRISE ME IF THIS WAS PRETTY HEAVILY MOTIVATED BY THOSE PUBLIC RELATIONS ISSUES PRUDENTIAL THE NATION'S LARGEST INSURANCE COMPANY WILL PAY 226 BILLION IN DIVIDENDS NEXT YEAR THE COMPANY MAINTAINED ITS DIVIDEND SCALES THIS YEAR BUT LOWERED THEM IN THE THREE PRIOR YEARS DIVIDEND RATES VARY WIDELY FROM POLICY TO POLICY AND PRUDENTIAL SAID IT HAS NOT CALCULATED AN AVERAGE RATE 9312170125 931217 WHO'S NEWS ANNTAYLOR STORES CORP ANNTAYLOR STORES CORP NEW YORK HANNE MERRIMAN WAS ELECTED A DIRECTOR OF THIS WOMEN'S FASHION RETAILER INCREASING THE BOARD'S SIZE TO SEVEN MS MERRIMAN 52 YEARS OLD IS AN INDEPENDENT RETAIL CONSULTANT 9312170124 931217 MARKETING & MEDIA WRITERS SUE PUBLISHERS SAYING ARTICLES WERE IN DATABASES WITHOUT PERMISSION BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BATTLE OVER ELECTRONICPUBLISHING RIGHTS ESCALATED AS 10 FREELANCE WRITERS SUED FIVE COMPANIES INCLUDING NEW YORK TIMES CO AND TIME WARNER INC'S MAGAZINE GROUP CLAIMING THAT ARTICLES THEY WROTE WERE PUBLISHED IN ELECTRONIC DATABASES WITHOUT THEIR PERMISSION AND WITHOUT COMPENSATION ALTHOUGH THE SUIT DOESN'T ASK FOR SPECIFIC DAMAGES AND DOESN'T INVOLVE VAST SUMS OF MONEY COPYRIGHT EXPERTS SAY IT WILL BE WATCHED CLOSELY BY PUBLISHERS WHO ARE TRYING TO SORT THESE ISSUES OUT THE ISSUE OF CREATIVE RIGHTS IS BECOMING EXCEEDINGLY TANGLED AND CONTENTIOUS AS ELECTRONIC FORMATS PROLIFERATE INCLUDING ONLINE COMPUTER DATABASES AND MULTIMEDIA PRODUCTS SUCH AS CDROMS THERE ARE NOW HUNDREDS OF MAGAZINES AND NEWSPAPERS INCLUDING MOST OF THE MAJOR ONES THAT LICENSE SOME OR ALL OF THEIR CONTENTS FOR ONLINE COMPUTER SERVICES IN THE SUIT FILED IN US DISTRICT COURT IN NEW YORK THE WRITERS CHARGED COPYRIGHT INFRINGEMENT AND ASKED FOR A PERMANENT INJUNCTION TO PREVENT ITS CONTINUANCE IN ADDITION TO NEW YORK TIMES AND TIME THE WRITERS SUED TIMES MIRROR CO'S NEWSDAY INC MEAD DATA CENTRAL A UNIT OF MEAD CORP AND UNIVERSITY MICROFILMS INTERNATIONAL A DIVISION OF BELL & HOWELL CO THE SUIT DOESN'T INVOLVE THE WORK OF STAFF WRITERS WHOSE WORKS ARE TRADITIONALLY OWNED BY THEIR PUBLICATIONS FREELANCERS TEND TO OWN THEIR OWN COPYRIGHTS NONE OF THE COMPANIES SUED WOULD COMMENT YESTERDAY A SPOKESMAN WAS REACHED AT EVERY COMPANY EXCEPT UNIVERSITY MICROFILMS AND EACH ONE SAID THE COMPANY HADN'T SEEN THE SUIT YET AND COULDN'T COMMENT THIS IS PARTLY ABOUT DIGNITY AND RESPECT FOR WRITERS SAID JONATHAN TASINI ONE OF THE WRITERS WHO SUED MR TASINI WHO'S ALSO PRESIDENT OF THE NATIONAL WRITERS UNION AN AFFILIATE OF THE UNITED AUTO WORKERS SAID HE COULDN'T ESTIMATE HOW BIG THE RIGHTSVIOLATION PROBLEM HAS BECOME BUT SAID I BELIEVE THOUSANDS OF WRITERS ARE AFFECTED WITH THIS SUIT WE ARE TRYING TO HELP SET PRINCIPLES OF INTELLECTUAL PROPERTY IN THE NEW ELECTRONIC AGE MR TASINI SUED OVER ARTICLES PUBLISHED IN THE NEW YORK TIMES AND NEWSDAY IN THE PAST SEVERAL YEARS IN THE CASE OF NEWSDAY THE AUTHOR SAID THE CHECK HE RECEIVED WAS STAMPED ON THE BACK WITH A NOTICE SAYING HIS ENDORSEMENT OF THE CHECK WOULD GIVE THE PAPER THE RIGHT TO INCLUDE SUCH MATERIAL IN ELECTRONIC ARCHIVES MR TASINI SAID HE CROSSED OUT THE NOTICE INDICATING HE WASN'T GRANTING THE RIGHT BUT THE ARTICLE APPEARED ANYWAY ON MEAD DATA CENTRAL'S ELECTRONIC DATABASE AND ON MICROFILM ANOTHER WRITER WHO SUED MARY KAY BLAKELY SAID THAT THOUGH HER LITERARY AGENT SPECIFICALLY NEGOTIATED CONTRACTS THAT DIDN'T INCLUDE ELECTRONIC RIGHTS IN THREE CASES THE NEW YORK TIMES MADE HER ARTICLES AVAILABLE IN A DATABASE I DON'T CARE IF IT'S 50 CENTS WE'RE TALKING ABOUT I DON'T THINK I WAS CHEATED OUT OF A BUNCH OF MONEY AND I DON'T WANT TO STRANGLE LIBRARIANS AND OTHER RESEARCHERS WHO NEED EASY ACCESS TO MATERIAL SAID MS BLAKELY BUT I THINK IT'S EXTREMELY IMPORTANT TO ESTABLISH PRINCIPLES HERE SO THAT CORPORATIONS DON'T JUST ASSUME THEY CAN TAKE THESE RIGHTS ROBERT NYLEN EDITOR OF A NEWSLETTER CALLED MEDIA AND THE LAW SAID HE DOESN'T THINK THE WRITERS WILL HAVE TROUBLE ESTABLISHING THAT PUBLISHERS AND DATABASES DON'T HAVE ELECTRONIC RIGHTS WITHOUT COMPENSATION BUT MR NYLEN SAID HE DOESN'T NECESSARILY EXPECT THIS LAWSUIT TO LEAD TO A BIG PROTRACTED BATTLE THE WRITERS UNION MAY HOPE FOR A BIG BATTLE BUT I THINK PUBLISHERS WILL TRY TO SETTLE THIS AS FAIRLY AND QUICKLY AS POSSIBLE HE SAID THEY DEPEND ON CREATORS LIKE THESE TO PUT OUT THEIR PRODUCT AND IT IS IN THEIR OWN INTERESTS TO FIND A CONTRACTUAL FORM FOR DEALING WITH THIS PROBLEM 9312170123 931217 INTERNATIONAL PREMIER IN SOUTH KOREA QUITS OVER RICE CONCESSION SEOUL SOUTH KOREA'S DECISION TO LIFT ITS BAN ON RICE IMPORTS TOOK ITS FIRST CASUALTY AS PRIME MINISTER HWANG IN SUNG RESIGNED TO TAKE RESPONSIBILITY THE ANNOUNCEMENT FOLLOWED WEEKS OF SOMETIMES VIOLENT PROTESTS AGAINST THE RICE DECISION A KEY CONCESSION IN THE GENERAL AGREEMENT ON TARIFFS AND TRADE TALKS THAT JUST ENDED IN GENEVA KOREANS REGARD FOREIGN RICE AS A THREAT TO THEIR DOMESTIC RICE INDUSTRY AND THEIR CULTURAL HERITAGE POLITICAL CIRCLES HUMMED WITH RUMORS THAT AT LEAST ONE CABINET MINISTER WOULD BE SACRIFICED TO HELP REPAIR THE CREDIBILITY OF PRESIDENT KIM YOUNG SAM WHO CAMPAIGNED ON A PROMISE TO MAINTAIN THE RICE BAN BUT AS MOMENTUM FOR A SUCCESSFUL CONCLUSION TO THE GATT TALKS GREW THE ADMINISTRATION CAME UNDER INTERNATIONAL PRESSURE ITS CAPITULATION WAS INEVITABLE BUT WIDELY REGARDED BY KOREAN FARMERS STUDENTS AND LAWMAKERS AS A BETRAYAL LEE HOI CHANG FORMER CHAIRMAN OF THE BOARD OF AUDIT AND INSPECTION A GOVERNMENT INVESTIGATIVE BODY WAS NAMED THE NEW PREMIER WITHIN HOURS OF MR HWANG'S RESIGNATION THE REST OF MR KIM'S CABINET MINISTERS TENDERED THEIR RESIGNATIONS THE NEW PRIME MINISTER MR LEE WILL ADVISE THE PRESIDENT ON WHICH SHOULD BE REPLACED AND MOST CURRENT MINISTERS INVOLVED IN ECONOMIC POLICY ARE CONSIDERED VULNERABLE 9312170122 931217 MARKETING & MEDIA DISNEY'S 'ALADDIN' SETS A RECORD FOR VIDEO SALES BURBANK CALIF WALT DISNEY CO'S STRATEGY OF SELLING ITS ANIMATED FILMS AS STOCKING STUFFERS HAS SUCCEEDED ONCE AGAIN WITH ALADDIN SUPPLANTING LAST SEASON'S BEAUTY AND THE BEAST AS THE TOPSELLING HOME VIDEO EVER WITH A WEEK STILL LEFT BEFORE CHRISTMAS DISNEY SAID IT ALREADY HAS SOLD MORE THAN 21 MILLION COPIES OF THE ANIMATED FILM TO CONSUMERS AND INDUSTRY OBSERVERS EXPECT SEVERAL MILLION MORE COPIES WILL BE SNAPPED UP BEFORE DISNEY PULLS THE VIDEO FROM CIRCULATION IT'S UNCLEAR WHETHER SALES WILL REACH THE 30 MILLION MARK SOME HAD EXPECTED HOWEVER WITH ALADDIN DISNEY HAS BROKEN ITS OWN RECORD SET LAST CHRISTMAS BY BEAUTY AND THE BEAST WHICH HAS SOLD MORE THAN 20 MILLION COPIES DOMESTICALLY DISNEY'S 101 DALMATIANS FANTASIA AND PINOCCHIO HOLD THE REMAINING TOP FIVE SPOTS 9312170121 931217 BRAZILIAN PRODUCTION IS UP RIO DE JANEIRO BRAZIL'S PRODUCTION INCREASED 16 IN OCTOBER FROM SEPTEMBER THE GOVERNMENT SAID THE MONTHTOMONTH GROWTH WAS THE FIRST INCREASE REGISTERED SINCE JUNE ACCORDING TO GOVERNMENT DATA ON A YEARTOYEAR BASIS OCTOBER PRODUCTION WAS UP 68 FROM THE SAME MONTH IN 1992 9312170120 931217 INTERNATIONAL REFORMERS FIND HOPE IN LATEST RUSSIAN TALLIES FASCISTS AND COMMUNISTS' HAVEN'T TAKEN OVER GORE SAYS IN MOSCOW BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIAN REFORMERS AND US OFFICIALS STROVE TO PUT A POSITIVE FACE ON THE RESULTS OF SUNDAY'S PARLIAMENTARY ELECTION AS RETURNS BECAME NEARLY COMPLETE IT IS NOT THE CASE THAT FASCISTS AND COMMUNISTS HAVE TAKEN OVER RUSSIA OR ITS NEW PARLIAMENT VICE PRESIDENT AL GORE TOLD REPORTERS AT A JOINT NEWS CONFERENCE WITH RUSSIAN PRIME MINISTER VIKTOR CHERNOMYRDIN HIS REMARKS ECHOED PRESIDENT CLINTON WHO SAID WEDNESDAY IN WASHINGTON THAT THE ELECTION DIDN'T DELIVER A FATAL BLOW TO REFORMIST FORCES AND VOICED CONTINUED SUPPORT FOR PRESIDENT BORIS YELTSIN MR CHERNOMYRDIN ALSO EXPRESSED OPTIMISM SAYING THAT WHEN THE NEW PARLIAMENT ASSEMBLES IN JANUARY AND WE DEFINE THE LINEUP OF FORCES I'M SURE WE'LL BE ABLE TO SORT OUT EVERYTHING THE PROREFORM RUSSIA'S CHOICE PARTY WAS GAINING AS VOTES WERE TALLIED BUT EVEN IF IT EMERGES AS THE SINGLE LARGEST BLOC IN THE LOWER HOUSE IT QUITE POSSIBLY WON'T HAVE CONTROL WITHOUT A COALITION WITH OTHER REFORMERS RUSSIA'S CHOICE APPEARS SURE TO FALL SHORT OF THE SEATS WON BY THE COMMUNIST PARTY AND ITS IDEOLOGICAL BROTHER THE AGRARIAN UNION MOREOVER THE REFORMERS ARE CLAIMING THE ALLEGIANCE OF A SIZABLE NUMBER OF INDEPENDENT CANDIDATES THOSE WHO RAN WITHOUT PARTY AFFILIATIONS INDEPENDENTS HOLD NEARLY A QUARTER OF THE LOWERHOUSE SEATS THE SITUATION REMAINS FLUID BUT EVEN IF THE FRACTIOUS PROREFORM BLOCS MANAGE TO HOLD A BROADER COALITION TOGETHER AND TO WIN THE ALLEGIANCE OF MANY INDEPENDENTS THEY WILL BARELY HAVE THE CRUCIAL ONETHIRD OF THE SEATS NEEDED TO DEFEND MR YELTSIN'S UNPOPULAR ECONOMIC REFORMS THE LOWER HOUSE OR STATE DUMA WILL HAVE 450 SEATS ONEHALF OF THEM FILLED BY WINNERS IN THE SINGLESEAT CONSTITUENCIES AND THE OTHER PROPORTIONALLY BY PARTY REPRESENTATIVES BASED ON VOTES FOR PARTIES NOT SPECIFIC CANDIDATES LOWERHOUSE LEGISLATION WILL HAVE TO BE APPROVED BY THE UPPER HOUSE WHICH IS AS EXPECTED DOMINATED BY PROYELTSIN REFORM ADVOCATES IF FOR EXAMPLE THE LOWER HOUSE PASSED ANTIREFORM LEGISLATION AND IT WERE VETOED BY THE UPPER HOUSE A TWOTHIRDS MAJORITY OF THE PARLIAMENT'S LOWER HOUSE WOULD BE NEEDED TO OVERTURN THE VETO TO PREVENT THIS THE REFORMERS NEED 151 SEATS RUSSIA'S CHOICE WHICH IS LED BY DEPUTY PRIME MINISTER YEGOR GAIDAR AND INCLUDES MANY CURRENT CABINET MEMBERS HAS THUS FAR GAINED THE LARGEST PROPORTION OF SINGLESEAT DISTRICT VOTES THESE GAINS MAY OFFSET ITS WEAKNESS IN THE PARTYPREFERENCE VOTES THAT MAKE UP THE OTHER HALF OF THE LOWERHOUSE SEATS WHERE VLADIMIR ZHIRINOVSKY'S LIBERAL DEMOCRATIC PARTY CAME OUT CLEARLY AHEAD FINAL RESULTS MAY BE ANNOUNCED TODAY AN ANALYSIS OF FIGURES SUPPLIED BY THE CENTRAL ELECTORAL COMMISSION YESTERDAY SHOWS THAT WITH 192 OUT OF THE 225 DISTRICTS' SINGLESEAT VOTES COUNTED AND 186 OF THE PARTYPREFERENCE VOTES COUNTED RUSSIA'S CHOICE AND MR ZHIRINOVSKY'S PARTY ARE RUNNING NECKANDNECK WITH AT LEAST 65 SEATS EACH THE COMMUNIST PARTY WILL HAVE AT LEAST 46 SEATS AND THE AGRARIAN UNION 40 BUT THE REFORMERS POINT TO A DIVISION OF INDEPENDENT MEMBERS THAT WOULD GIVE RUSSIA'S CHOICE SUPPORT OF 94 MEMBERS MR ZHIRINOVSKY'S PARTY 78 THE COMMUNIST PARTY 64 AND THE AGRARIAN UNION 55 SEATS ACCORDING TO THE INDEPENDENT NEWS AGENCY INTERFAX THE THREE OTHER PROREFORM PARTIES GET 58 SEATS IN TOTAL BY THIS ANALYSIS HOWEVER THREE OTHER PARTIES ARE LIKELY TO OPPOSE MANY KEY ECONOMIC REFORMS ALTHOUGH THEY ALSO ARE LIKELY TO AVOID A FIRM ALLIANCE WITH MR ZHIRINOVSKY BY THE SAME ANALYSIS THE DEMOCRATIC PARTY OF RUSSIA IS RECKONED TO HAVE AT LEAST 19 VOTES CIVIC UNION 18 VOTES AND WOMEN OF RUSSIA 24 VOTES EVEN USING THESE ESTIMATES RUSSIA'S CHOICE AND THE THREE OTHER PROREFORM PARTIES WOULD COMMAND JUST 152 VOTES AND THE PROSPECT OF SUCH A REFORMISTCOALITION LOOKS AS DIFFICULT NOW AS IT WAS BEFORE THE ELECTION ONE OF THE GREATEST AREAS OF FRICTION REMAINS BETWEEN RUSSIA'S CHOICE AND THE BLOC LED BY ECONOMIST GRIGORY YAVLINSKY A LONGTIME RIVAL OF MR GAIDAR A COALITION SAID MR YAVLINSKY AT A RECEPTION FOR MR GORE YESTERDAY WITH WHOM A COALITION WITH THE COMMUNISTS WOULD BE PERFECTLY ACCEPTABLE SAID MR CHERNOMYRDIN AT THE GORE RECEPTION MR CHERNOMYRDIN ALSO SAID SOME CHANGES IN THE CABINET ARE LIKELY HE WAS SEEN TALKING AT LENGTH WITH COMMUNIST PARTY LEADER GENNADY ZYUGANOV LATER IN THE EVENING MR YELTSIN HAS YET TO GIVE HIS ASSESSMENT OF THE RESULTS HIS MAJOR POSTELECTION ACTION HAS BEEN TO FIRE SEVERAL OFFICIALS YESTERDAY HE DISMISSED VYACHESLAV BRAGIN THE POWERFUL HEAD OF STATEOWNED OSTANKINO TELEVISION ACTING ON CHARGES THAT MR BRAGIN WAS PARTIALLY RESPONSIBLE FOR THE REFORM PARTIES' POOR SHOWING IN THE ELECTION HE ALSO FIRED ALEXANDER KOTYONKOV AS HEAD OF THE PRESIDENT'S LEGAL DEPARTMENT A DAY EARLIER HE FIRED PRESIDENTIAL ADVISER SERGEI STANKEVICH 9312170119 931217 AMEX BOARD ADOPTS RULE FOR 'ONESHARE ONEVOTE' THE AMERICAN STOCK EXCHANGE ADOPTED A ONESHARE ONEVOTE REQUIREMENT FOR COMPANIES LISTED THERE A MEASURE THAT WAS STRONGLY OPPOSED BY FORMER CHAIRMAN ARTHUR LEVITT DURING HIS TENURE THE AMEX BOARD'S DECISION YESTERDAY CAME AFTER AN INPERSON APPEAL BY MR LEVITT NOW THE CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION MR LEVITT WHO LEFT THE AMEX IN 1989 SAID HIS NEW POSITION HELPED HIM SEE THE ONESHARE ONEVOTE PROPOSAL AS THE BEST WAY TO PREVENT FURTHER DIMINUTION OF SHAREHOLDERS' VOTING RIGHTS BROADLY THE RULE PROHIBITS LISTED COMPANIES FROM ISSUING NEW BATCHES OF COMMON STOCK THAT WOULD DILUTE THE HOLDINGS AND VOTING RIGHTS OF CURRENT SHAREHOLDERS THE RULE WAS PROPOSED DURING THE TAKEOVER FRENZY OF THE 1980S WHEN COMPANIES WERE ISSUING NEW STOCK IN DROVES TO HELP WARD OFF UNFRIENDLY ACQUISITIONS ALTHOUGH THE TAKEOVER WAVE HAS CRESTED SHAREHOLDER ACTIVISTS STILL SEE THE RULE AS AN IMPORTANT PROTECTION THE SEC EVENTUALLY IMPOSED A RULE THAT BARRED LISTED COMPANIES FROM ISSUING A CLASS OF COMMON STOCK WITH LESSER VOTING RIGHTS THE BIG BOARD AND THE NASDAQ HAVE ADOPTED VOTINGRIGHTS RULES SIMILAR TO THE SEC'S LEAVING THE AMEX ON ITS OWN UNTIL YESTERDAY REPRESENTATIVES OF THE THREE MARKETS MET RECENTLY WITH MR LEVITT IN WASHINGTON AND RENEWED DISCUSSIONS OF AN AGREEMENT ON SHAREHOLDERS' VOTING RIGHTS 9312170118 931217 GITANO EXOFFICERS PLEAD GUILTY IN CUSTOMS FRAUD NEW YORK GITANO GROUP INC AND THREE OF ITS FORMER TOP EXECUTIVES AGREED TO PLEAD GUILTY TO FELONY CHARGES IN CONNECTION WITH A SCHEME TO DEFRAUD THE US CUSTOMS SERVICE IN ADDITION A FEDERAL GRAND JURY ISSUED A 67COUNT INDICTMENT AGAINST A FORMER GITANO MANAGER AND TWO OTHERS WHO ALLEGEDLY PARTICIPATED IN A SCHEME DESIGNED TO CIRCUMVENT IMPORT QUOTA RESTRICTIONS GITANO WAS ACCUSED OF FALSELY REPORTING THE COUNTRY OF ORIGIN FOR 27 MILLION OF BLOUSES IMPORTED IN 1991 AND 1992 THE GOVERNMENT SAID IT'S SEEKING FINES FROM GITANO OF 900000 TO 18 MILLION ROBERT GREGORY GITANO'S CHAIRMAN AND CHIEF EXECUTIVE SAID THE CUSTOMS MATTER WAS ONE OF THE MAJOR OVERHANGING ISSUES FROM GITANO'S PAST PLEADING GUILTY TO CHARGES OF CONSPIRACY TO DEFRAUD THE CUSTOMS SERVICE WERE HAIM DABAH 42 YEARS OLD FORMER GITANO PRESIDENT CHIEF OPERATING OFFICER AND DIRECTOR AND HIS BROTHER ISAAC DABAH 36 A FORMER GITANO VICE CHAIRMAN AND DIRECTOR ALSO PLEADING GUILTY TO CUSTOMS VIOLATIONS WAS MAX WHITE 37 A FORMER VICE PRESIDENT WHO WAS IN CHARGE OF PRODUCTION OF THE IMPORTED BLOUSES IN QUESTION MR WHITE AND THE DABAH BROTHERS FACE A MAXIMUM SENTENCE OF FIVE YEARS IN PRISON AND A 250000 FINE HAIM DABAH AND MR WHITE COULDN'T BE REACHED TO COMMENT AN ATTORNEY FOR ISAAC DABAH DECLINED TO COMMENT 9312170117 931217 MARKETING & MEDIA ADVERTISING CONDOM MAKER TAKES SCARE TACTIC TO TELEVISION IN MTV AD SPOTS BY KEVIN GOLDMAN I ENJOY SEX BUT I'M NOT READY TO DIE FOR IT WAS THE SCARE TACTIC USED IN PRINT ADS FOR LIFESTYLES CONDOMS A FEW YEARS AGO REFERRING TO THE PRODUCT'S ROLE IN PREVENTING AIDS NOW A NEW TV COMMERCIAL FOR LIFESTYLES HOPES TO TAP INTO A DIFFERENT FEAR MEN'S WORRY THAT WOMEN WILL REJECT THEM IF THEY DON'T WEAR A CONDOM LIFESTYLES MANUFACTURED BY ANSELL A SUBSIDIARY OF PACIFIC DUNLOP IS STARTING AN AD CAMPAIGN ON MTV ON NEW YEAR'S EVE WITH A COMMERCIAL SHOWING A GROUP OF WOMEN CHATTING ABOUT UNATTRACTIVE TRAITS IN MEN WITH THE WOMEN INTERRUPTING EACH OTHER AND LAUGHING THEY SAY NEVER WITH A GUY WHO CALLS YOU BABE SWEETIE HONEY ONE WOMAN SAYS SPITTERS HATE THEM THEY ARE ALL REPULSED BY MEN WHO SLAP EACH OTHER WITH THE HIGH FIVE SIGN MADE POPULAR BY ATHLETES AS THE SESSION WINDS DOWN ONE WOMAN SAYS WHO'S LEFT ANOTHER WOMAN REPLIES NEVER WITH A GUY WHO THINKS HE CAN GET AWAY WITH NOT WEARING A CONDOM NOT WITH ME NOT IN THIS DAY AND AGE I WOULDN'T TAKE THE CHANCE THE AD MARKS THE FIRST TIME IN TWO YEARS THAT A CONDOM MANUFACTURER IS ADVERTISING ON TELEVISION OF COURSE IT IS VIRTUALLY IMPOSSIBLE TO ADVERTISE CONDOMS ON NATIONAL NETWORKS WITH THE EXCEPTION OF NEWS CORP'S FOX NETWORK THE MAJOR BROADCAST NETWORKS PROHIBIT CONDOM ADVERTISING ABC FOR INSTANCE SAYS IT DOESN'T ACCEPT ANY CONTRACEPTIVE ADVERTISING NO MATTER THE PRODUCT EVEN FOX HAS LIMITS A SPOKESMAN SAYS IT WILL AIR SUCH ADS ONLY WHEN THE PRIMARY MESSAGE IS PREVENTION OF DISEASE AND HEALTH MAINTENANCE IN OTHER WORDS AN AD WOULD BE REJECTED IF IT STRESSED CONTRACEPTION AS THE REASON FOR USING A CONDOM CONDOM ADS AREN'T FORBIDDEN FROM ALL BROADCAST OUTLETS THE NETWORK GUIDELINES DON'T AFFECT INDIVIDUAL STATIONS OWNED BY THE NETWORK OR AFFILIATED WITH ONE STATIONS CONSIDER IT MARKET BY MARKET BECAUSE THE ISSUE IS A LOCAL ISSUE AND IS SUBJECT TO COMMUNITY STANDARDS SAYS A CBS SPOKESWOMAN ADS FOR CONDOMS HAVE BEEN ABSENT FROM THE AIRWAVES SINCE NOVEMBER 1992 WHEN TWO 15SECOND SPOTS FOR TROJAN FROM CARTERWALLACE AIRED ON A SPECIAL U2 ZOO TV ON THE FOX NETWORK BUT THE NEW ADS FOR LIFESTYLES CREATED AND PRODUCED BY ITS AGENCY GOLDBERG FOSSA SEID MARK THE FIRST CONCERTED EFFORT BY A CONDOM MANUFACTURER TO HAVE A SUSTAINED PRESENCE ON TELEVISION ALBEIT CABLE LIFESTYLES IS A DISTANT SECOND IN THE CONDOM MARKET WHICH HAD FOOD AND DRUGSTORE SALES OF 2402 MILLION FOR THE 12MONTH PERIOD ENDED NOV 30 ACCORDING TO TOWNEOLLER & ASSOCIATES A SUBSIDIARY OF INFORMATION RESOURCES GOLDBERG FOSSA SAYS TROJAN HAS ABOUT 60 OF THE MARKET AND LIFESTYLES HAS 12 TO 15 LIFESTYLES HAS AN AWARENESS PROBLEM SAYS FRANK MARRONE SENIOR VICE PRESIDENT AND CREATIVE DIRECTOR OF GOLDBERG FOSSA WE DIDN'T WANT TO GO AFTER EVERYBODY IN THIS CAMPAIGN WE WANTED TO GO AFTER THE 50 OF THE CONDOM BUYERS WHO ARE 18 TO 24 YEARS OLD MR MARRONE BELIEVES IT IS UNLIKELY THAT ANYONE 30 YEARS OLD OR OLDER WOULD CHANGE BRANDS SINCE THEIR BUYING HABITS WERE ALREADY ESTABLISHED ODDLY FOR AN AD THAT'S SUPPOSED TO HEIGHTEN BRAND AWARENESS THE PRODUCT'S NAME IS NEVER SPOKEN INSTEAD A BLUE BOX OF LIFESTYLES CONDOMS IS SHOWN AT THE COMMERCIAL'S CONCLUSION WE THINK THE SPOT IS SO ENGAGING AND ATTENTION GRABBING WE DIDN'T HAVE TO MENTION THE NAME SAYS ERNEST J FOSSA A PARTNER AND DIRECTOR OF MEDIA SERVICES AT THE AGENCY THE AGENCY ADMITS THAT WHEN IT FIRST APPROACHED LIFESTYLES EXECUTIVES ABOUT TELEVISION ADVERTISING THE REACTION WASN'T IMMEDIATELY ENTHUSIASTIC USUALLY CONDOM MANUFACTURERS ADVERTISE IN MAGAZINES SUCH AS PLAYBOY AND ROLLING STONE WE SAID WE DIDN'T KNOW WHETHER WE WANTED TO DO THIS SAYS CAROL CARROZZA SENIOR PRODUCT MANAGER AT ANSELL BUT THEN THE CLIENT LOOKED AT THE AGENCY'S STORYBOARDS AND MS CARROZZA SAYS WE SAW IT WASN'T HEAVY HANDED BUT WAS RESPONSIBLE LIFESTYLES DID TRY ADVERTISING ON BROADCAST TELEVISION SEVERAL YEARS AGO WHEN IT PRODUCED A SPOT WITH AD MAN JERRY DELLA FEMINA THE COMMERCIAL SHOWED A CLOSEUP OF A YOUNG WOMAN IN CONVERSATION WHO SAID SHE WASN'T READY TO DIE FOR A SEXUAL RELATIONSHIP THAT SPOT NEVER AIRED ON TELEVISION ACCORDING TO MS CARROZZA WHILE SOME CONDOM ADS HAVE BEEN SHOWN ON TELEVISION FROM TIME TO TIME MS CARROZZA SAYS THE NEW SPOT FROM GOLDBERG FOSSA REPRESENTS THE FIRST MAJOR CAMPAIGN LIFESTYLES PLANS TO RUN THE AD MORE THAN 600 TIMES ON MTV IN THE FIRST QUARTER OF 1994 IT WILL CONTINUE THROUGHOUT THE YEAR WITH AN ESTIMATED BUDGET OF LESS THAN 10 MILLION THE AGENCY HOPES TO CONVINCE BROADCAST NETWORKS THAT THE SPOT IS APPROPRIATE FOR THEIR VIEWERS TOO MTV WELCOMED IT WITH OPEN ARMS SAYS MS CARROZZA A SPOKESWOMAN FOR MTV SAYS WE LOOK AT EVERY AD ON AN INDIVIDUAL BASIS TO DETERMINE WHETHER IT IS APPROPRIATE FOR OUR AIR THIS AD WAS REVIEWED AND IT WAS SOMETHING WE WANTED TO PUT ON MTV ONE SHOW THAT LIFESTYLES DOESN'T WANT TO BE INCLUDED ON HOWEVER IS MTV'S MOST POPULAR AND MOST CONTROVERSIAL BEAVIS AND BUTTHEAD MR FOSSA SAYS THE ANIMATED SERIES FEATURING TWO HIGH SCHOOL BUDDIES WHO ARE THE DEFINITION OF DELINQUENTS SKEWS OLDER THAN WE WANTED TO TRY TO PREVENT ANY LASTMINUTE PROBLEMS WITH MTV GOLDBERG FOSSA WORKED EXTENSIVELY WITH THE CABLE NETWORK ON EVERY ASPECT OF THE AD INCLUDING STORYBOARDS AND SCRIPTS CARTERWALLACE DIDN'T COMMENT ON WHETHER TROJAN MIGHT JOIN THE CONDOM ADVERTISING BLITZ ON MTV TO COUNTER LIFESTYLES CURRENTLY TROJAN PRINT ADS WITH THE SLOGAN GET REAL MIX HUMOR WITH SCARE TACTICS ONE AD OFFERS A PRESUMABLY OFTUTTERED EXCUSE FOR FORGOING A CONDOM I DIDN'T USE ONE BECAUSE I DIDN'T HAVE ONE WITH ME THE AD THEN SAYS IF YOU DON'T HAVE A PARACHUTE DON'T JUMP GENIUS THE TAG LINE HELPS REDUCE THE RISK LIFESTYLES HOPES ITS NEW CAMPAIGN IS LONG LASTING THE AGENCY ENVISIONS DIFFERENT VERSIONS OF THE ORIGINAL SPOT TITLED NEVER WITH A GUY WITH WOMEN LISTING OTHER UNATTRACTIVE CHARACTERISTICS THERE COULD ALSO BE SPOTS WITH MEN OR WITH COUPLES THE AD WILL RUN SIX TIMES ON NEW YEAR'S EVE ALONE BEFORE BEING PLACED ON A HEAVY SCHEDULE DURING MTV'S DAYTIME AND PRIMETIME SCHEDULE MR FOSSA SAYS MTV WAS PARTICULARLY PLEASED TO RECEIVE A SPOT DESIGNED ESPECIALLY FOR ITS AUDIENCE AND WAS MORE GRATEFUL THAT IT DIDN'T INCLUDE A MUSIC VIDEO CITICORP'S CITIBANK UNIT PAID 750 TO WASHINGTON CONSUMER ACTIVIST MICHAEL JACOBSON TO SETTLE A SUIT HE FILED COMPLAINING ABOUT UNWANTED INTRUSIVE TELEMARKETING CALLS MR JACOBSON FILED THE SUIT IN OCTOBER IN THE SMALLCLAIMS DIVISION OF THE SUPREME COURT OF THE DISTRICT OF COLUMBIA MR JACOBSON SAID HE TWICE INSTRUCTED CITIBANK TO REMOVE HIM FROM ITS TELEMARKETING LISTS DURING CALLS HE RECEIVED FROM CITIBANK'S TELEMARKETERS LAST SPRING AFTER HE RECEIVED A THIRD CALL IN SEPTEMBER MR JACOBSON SUED UNDER THE TELEPHONE CONSUMER PROTECTION ACT WHICH FORBIDS COMPANIES FROM MAKING MARKETING CALLS TO THE HOMES OF PEOPLE WHO TELL THEM NOT TO CITIBANK SAID ITS TELEMARKETING VENDOR DIDN'T HAVE A RECORD OF MR JACOBSON'S FIRST REQUEST HIS SECOND REQUEST WAS IMPROPERLY CODED THE COMPANY SAID ADDING THAT IT WASN'T INTENTIONAL NEGLECT FINALISTS PHILIPS CONSUMER ELECTRONICS A UNIT OF PHILIPS ELECTRONICS NV HAS NARROWED ITS AGENCY SEARCH TO FOUR AGENCIES INDUSTRY EXECUTIVES SAID CONTENDERS FOR THE ESTIMATED 30 MILLION ACCOUNT ARE D'ARCY MASIUS BENTON & BOWLES NEW YORK FALLONMCELLIGOTT MINNEAPOLIS MULLEN ADVERTISING WENHAM MASS AND HAL RINEY & PARTNERS SAN FRANCISCO SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES HAD THE ACCOUNT PHILIPS DECLINED COMMENT ASSIGNMENT SEARS ROEBUCK & CO CHICAGO HAS HIRED WUNDERMAN CATO JOHNSON YOUNG & RUBICAM'S DIRECTMARKETING UNIT TO EXAMINE AND MAKE RECOMMENDATIONS ABOUT ITS CUSTOMER DATABASE AND LOYALTYMARKETING PROGRAMS BILLINGS COULDN'T BE DETERMINED Y&R WON A BIG ADVERTISING ASSIGNMENT FROM SEARS EARLIER THIS YEAR 9312170116 931217 POLITICS & POLICY CLINTON'S POLITICAL CAREER HAS BENEFITED FROM CAMPAIGN LOANS BY VARIOUS BANKS BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL LITTLE ROCK ARK BILL CLINTON WOULDN'T BE WHERE HE IS IN THE WHITE HOUSE WITHOUT A SERIES OF TIMELY POLITICALCAMPAIGN LOANS FROM SMALLTOWN AND BIGTIME BANKERS AND HE WOULDN'T BE FACING FRESH QUESTIONS ABOUT CAMPAIGN FINANCES AND HIS TIES TO THE ONETIME OWNER OF A FAILED ARKANSAS THRIFT MADISON GUARANTY SAVINGS & LOAN IF HE HADN'T BORROWED 50000 FROM A TINY RURAL BANK FOR HIS 1984 REELECTION CAMPAIGN AS FOR THE BANKERS THEIR WILLINGNESS TO LEND MONEY TO MR CLINTON'S POLITICAL CAMPAIGNS USUALLY AT CRITICAL JUNCTURES WAS FOLLOWED BY TOP STATEGOVERNMENT POSTS HERE AND READY ACCESS TO HIS ADMINISTRATIONS IN LITTLE ROCK AND WASHINGTON THE BIGGEST ASSIST CAME FROM LITTLE ROCK'S WORTHEN BANKING CORP WHICH EXTENDED A 35 MILLION LINE OF CREDIT TO THE CLINTON PRESIDENTIAL CAMPAIGN HELPING HIM OVERCOME A CASH CRUNCH AND REKINDLE HIS CANDIDACY IN THE SUPER TUESDAY PRIMARIES IN MARCH 1992 BECAUSE OF ENDOFCAMPAIGN JITTERS BILL CLINTON REPEATEDLY TURNED TO BANKING FRIENDS FOR 11THHOUR INFUSIONS OF CAMPAIGN FUNDS IN 1984 FOR EXAMPLE HE TOOK OUT A 50000 PERSONAL LOAN FROM THE BANK OF CHERRY VALLEY WHICH WAS OWNED BY A LONGTIME CAMPAIGN FUNDRAISER AND POLITICAL MENTOR W MAURICE SMITH JR EVEN THOUGH HE HAD A SEEMINGLY COMFORTABLE LEAD IN THE POLLS MR SMITH WAS SUBSEQUENTLY APPOINTED DIRECTOR OF STATE HIGHWAYS AND TRANSPORTATION ONE OF THE MOST COVETED PATRONAGE PLUMS IN ARKANSAS GOVERNMENT MR SMITH COULDN'T BE REACHED FOR COMMENT THE CHERRY VALLEY LOAN HAS SINCE BECOME A MAJOR CONSIDERATION IN A JUSTICE DEPARTMENT INVESTIGATION OF POSSIBLE DIVERSION OF FUNDS FROM MADISON GUARANTY TO HELP RETIRE MR CLINTON'S 1984 CAMPAIGN DEBT THE NOWDEFUNCT THRIFT HAD BEEN OWNED BY HIS FRIEND AND BUSINESS ASSOCIATE JAMES MCDOUGAL UNTIL IT WAS TAKEN OVER BY FEDERAL REGULATORS IN 1989 AT MR CLINTON'S REQUEST MR MCDOUGAL HOSTED A COCKTAIL PARTY IN THE ART DECO LOBBY OF MADISON GUARANTY IN APRIL 1985 TO RAISE FUNDS FOR RETIRING THE 1984 DEBT EARLIER THIS WEEK THE NEW YORK TIMES REPORTED THAT THE ONLY OUTSTANDING DEBT WAS THE 50000 PERSONAL LOAN THAT MR CLINTON HAD OBTAINED FROM THE BANK OF CHERRY VALLEY BETSEY WRIGHT MANAGER OF THE 1984 CAMPAIGN SAID 25000 TO 30000 WAS RAISED AT THE PARTY AND THAT THE REMAINDER OF THE 50000 LOAN FROM THE CHERRY VALLEY BANK WAS COVERED WITH CONTRIBUTIONS FROM OTHER CLINTON SUPPORTERS SOME OF THE CONTRIBUTIONS COLLECTED BY MR MCDOUGAL WERE CASHIER'S CHECKS WHICH MS WRIGHT SAID ISN'T UNCOMMON MR MCDOUGAL COULDN'T BE REACHED FOR COMMENT BUT MS WRIGHT SAID YESTERDAY THAT SHE WAS HORRIFIED TO LEARN THAT AT LEAST ONE CASHIER'S CHECK FOR 3000 CAME FROM AN ARKANSAS BUSINESSMAN WHO DISAVOWS MAKING SUCH A DONATION IN 1985 THE WASHINGTON POST IDENTIFIED THE BUSINESSMAN AS KEN PEACOCK SON OF CHARLES PEACOCK A ONETIME DIRECTOR OF MADISON GUARANTY AT THE TIME OF THE FUNDRAISER HE WAS A COLLEGE STUDENT NEITHER OF THE PEACOCKS COULD BE REACHED FOR COMMENT WHOEVER CUT THE CHECK PUT KEN PEACOCK'S NAME ON IT SHE SAID THE POSSIBILITY OF FRAUDULENT USE OF HIS NAME JUST MAKES ME SICK IN THE LAST DAYS OF MR CLINTON'S 1990 GUBERNATORIAL CAMPAIGN WHEN IT APPEARED THAT HIS REPUBLICAN CHALLENGER SHEFFIELD NELSON MIGHT PULL OFF AN UPSET WITH A BARRAGE OF TAXANDSPEND TELEVISION ADS MR CLINTON STARTED CALLING SUPPORTERS IN PANIC WARREN STEPHENS CHAIRMAN OF STEPHENS INC ONE OF THE LARGEST BROKERAGE FIRMS OUTSIDE OF NEW YORK SAID THROUGH A SPOKESMAN THAT MR CLINTON CALLED HIM THE FRIDAY BEFORE ELECTION DAY ASKING FOR MONEY FOR A TELEVISED COUNTERATTACK MR STEPHENS PROMISED TO RAISE 10000 ACCORDING TO THE SPOKESMAN WITH PLEDGES IN HAND FROM MR STEPHENS AND OTHER PROMINENT BACKERS MR CLINTON WAS ABLE TO BORROW 100000 TWO LOANS FOR 50000 EACH FROM THE PERRY COUNTY BANK IN PERRYVILLE ARK THIS MONEY WAS LIKE RAIN SAID ROY DREW A LITTLE ROCK INVESTMENT CONSULTANT AND FREQUENT CRITIC OF MR CLINTON IT ISN'T HOW MUCH YOU GET BUT WHEN YOU GET IT THAT COUNTS THE PERRYVILLE BANKER WHO BAILED OUT MR CLINTON HERBY BRANSCUM AN ATTORNEY WASN'T FORGOTTEN HE WAS APPOINTED TO THE ARKANSAS HIGHWAY COMMISSION IN JANUARY 1991 MR BRANSCUM DECLINED TO DISCUSS THE LOANS AND HE DENIED COLLECTING ANY FAVORS I'VE BEEN A SUPPORTER OF MR CLINTON SINCE HE STARTED IN POLITICS HE SAID THERE'S NO CONNECTION BETWEEN THOSE LOANS AND MY APPOINTMENT THE 100000 DEBT WAS PAID OFF BY MR CLINTON LAST YEAR ACCORDING TO RECORDS AT THE ARKANSAS SECRETARY OF STATE'S OFFICE MS WRIGHT CONTENDED THAT IT ISN'T UNUSUAL FOR POLITICIANS IN ARKANSAS TO TAKE OUT PERSONAL LOANS TO UNDERWRITE THEIR CAMPAIGNS UNDER STATE LAW SHE SAID CANDIDATES HAVE TO BORROW CAMPAIGN FUNDS IN THEIR NAME AND REPORT THE LOANS AS PERSONAL CONTRIBUTIONS TO THEIR CAMPAIGNS SHE SAID THAT MR CLINTON'S 50000 LOAN FROM THE CHERRY VALLEY BANK WAS A STRAIGHT BANKING PROCEDURE AND THAT MR SMITH'S 1988 APPOINTMENT TO THE HIGHWAYS POST SHOULDN'T BE PORTRAYED AS A POLITICAL PAYBACK THIS GUY IS A FATHER FIGURE TO BILL CLINTON HE'S A LONGTIME FRIEND MS WRIGHT SAID OF MR SMITH WHO IS RETIRING DEC 21 AS FOR WORTHEN BANKING AND ITS 35 MILLION LINE OF CREDIT IT BECAME THE CLINTON PRESIDENTIAL CAMPAIGN'S MAIN BANK SAFEKEEPING MILLIONS OF DOLLARS IN FEDERAL ELECTION FUNDS TOP MANAGEMENT AT THE BANKHOLDING COMPANY IN WHICH THE STEPHENS FAMILY HAS A MAJOR STAKE ALSO GAINED A GREATER VOICE IN WASHINGTON REGARDING BANKING AND SECURITIES MATTERS ALREADY PART OF ARKANSAS POLITICAL LORE IS WORTHEN CHAIRMAN CURT BRADBURY'S REMARK TO THE ARKANSAS TIMES JUST BEFORE THE NOVEMBER ELECTION I WOULD LIKE TO BE IN A POSITION HE SAID TO THINK I COULD CALL THE PRESIDENT OF THE UNITED STATES AND GIVE HIM MY VIEWS ON THE FEDERAL RESERVE FOR EXAMPLE 9312170115 931217 BUSINESS BRIEF MAXXAM INC SUBSIDIARY COMPLETES SALE OF APARTMENT COMPLEXES MAXXAM INC SAID THAT ONE OF ITS UNITS COMPLETED THE SALE OF 14 OF ITS 24 MULTIFAMILY APARTMENT COMPLEXES AND THAT THE SALE OF AN ADDITIONAL TWO APARTMENT PROJECTS TO THE SAME BUYER IS EXPECTED TO BE COMPLETED NEXT WEEK MAXXAM SAID THE SALE PRICE FOR THE 16 PROJECTS CONSISTING OF ABOUT 3900 UNITS MOSTLY LOCATED IN FOUR TEXAS CITIES IS ABOUT 114 MILLION THE HOUSTON ALUMINUM FOREST PRODUCTS AND REALESTATE MANAGEMENT CONCERN SAID IT EXPECTS TO RECORD A ONETIME PRETAX GAIN OF ABOUT 48 MILLION ON THE SALE IN THE FOURTH QUARTER MAXXAM SAID PROCEEDS WILL BE USED TO REPAY DEBT RELATED TO THE PROPERTIES WITH THE BALANCE AVAILABLE FOR GENERAL CORPORATE PURPOSES 9312170114 931217 LEISURE & ARTS BOOKSHELF A LIFE SPENT IN HECTIC PURSUIT OF AMUSEMENT BY LEE LESCAZE NANCY MITFORD WHILE STILL IN HER 20S WROTE TO A FRIEND THAT HALF THE FUN IN LIFE IS TELLING OTHERS THE FUNNY THINGS THAT HAPPEN TO YOU A MONTH LATER SHE WROTE IF ONE CAN'T BE HAPPY ONE MUST BE AMUSED THAT WAS PRETTY MUCH HER GUIDING PHILOSOPHY TO READ LOVE FROM NANCY THE LETTERS OF NANCY MITFORD HOUGHTON MIFFLIN 538 PAGES 35 IS TO WATCH A WOMAN IN HECTIC PURSUIT OF AMUSEMENT SHE LIVED AMONG THE BRIGHT WITTY RICH AND TITLED AND SHE LIVED BY HER WIT WITHOUT BENEFIT OF SCHOOLING SHE BECAME A SUCCESSFUL NOVELIST AND BIOGRAPHER AS WELL AS A VITAL FIGURE IN ANGLOFRENCH AND OCCASIONALLY ITALIAN SOCIETY SHE WAS A SNOB A GOSSIP AND A KEEN MOCKER OF SNOBS AND GOSSIPS MITFORD SAID SHE LOVED TO TEASE BUT ONE WOMAN'S TEASING IS ANOTHER WOMAN'S CRUELTY HER WIT COULD WOUND HER GOOD FRIEND AND CONSTANT CORRESPONDENT EVELYN WAUGH CALLED HER THE TOUGHEST WOMAN HE KNEW THAT WAS A COMPLIMENT MITFORD WAS A RACIST SHE WAS A HATER OF ABRAHAM LINCOLN AND ALL THINGS AMERICAN EXCEPT HER AMERICAN FRIENDS SIMILARLY SHE OFTEN HAD UNKIND WORDS FOR HOMOSEXUALS BUT WAS CLOSE TO MANY SHE THOUGHT THE WORLD WAS GOING TO POT AND ADMIRED THE 18TH AND 19TH CENTURIES AS FINER ERAS SHE WROTE POPULAR BIOGRAPHIES OF MADAME DE POMPADOUR LOUIS XV AND VOLTAIRE WHEN SHE UNDERTOOK TO WRITE A BIOGRAPHY OF FREDERICK THE GREAT SHE WROTE A FRIEND FREDERICK AMUSES ME TO DEATH HE IS SO FUNNY CLEVER & WICKED BORN IN 1904 MITFORD WAS THE OLDEST OF SEVEN CHILDREN IN AN EXTRAORDINARY TITLED BRITISH FAMILY HER ONLY BROTHER WAS KILLED IN WORLD WAR II ONE SISTER BECAME ENAMORED OF HITLER AND TRIED TO KILL HERSELF IN GERMANY WHEN SHE REALIZED THAT GERMANY AND ENGLAND WERE GOING TO WAR SHE BOTCHED THE JOB AND LIVED AS AN INVALID WITH THE BULLET IN HER HEAD FOR MANY YEARS ANOTHER SISTER MARRIED SIR OSWALD MOSLEY LEADER OF THE BRITISH FASCISTS YET ANOTHER WAS A COMMUNIST SYMPATHIZER WHO MOVED TO AMERICA MORE THAN 8000 OF MITFORD'S HUGE OUTPUT OF LETTERS SURVIVE AND CHARLOTTE MOSLEY MARRIED TO ONE OF MITFORD'S NEPHEWS HAS SELECTED AND EDITED THEM TO GIVE A LENGTHY LOOK AT MITFORD'S STYLE AND HER LIFE THE FLASHES OF WIT ARE THE BRIGHTEST MOMENTS IN A FUNNY EARLY EXCHANGE WITH WAUGH MITFORD SAID SHE WAS SAVING MONEY TO GET MARRIED WAUGH SUGGESTED THAT INSTEAD SHE OUGHT TO SPEND HER MONEY ON BETTER CLOTHES TO CATCH A BETTER MAN WHEN CYRIL CONNOLLY HAD A SON AT AN ADVANCED AGE MITFORD REMARKED I THINK CYRIL IS QUITE LUCKY HE WILL SEE THE LITTLE TREASURE AT THE CHARMING EARLY STAGES & BE COMFORTABLY BELOW GROUND BY THE TIME HE IS A LONG HAIRED SEWER SHE RECALLED WITH JOY A LUNCHEON AT WHICH THE HOSTESS SUDDENLY ASKED WHERE DID WILLIAM THE CONQUEROR DIE A 90YEAROLD GUEST CAME OUT OF HIS DREAM AND ASKED AND WHAT MUST WE STUDY FOR DINNER SHE WAS AMUSED TO OFFEND SOME AMERICANS DURING A PARLOR GAME IN WHICH EACH PERSON HAD TO MAKE UP A DEFINITION OF THE STONE OF INSULT ONE SAID IT MARKED A DIVISION BETWEEN TRIBES ANOTHER SAID IT WAS THE STONE IN THE BIBLE TO BE CAST FIRST MITFORD SAID I SEE IT AS A VERY SMALL DIAMOND OFFERED FOR MY VIRTUE ASIDE FROM THE JOKES THE LETTERS ARE INTERESTING FOR THEIR REFLECTION OF ANOTHER WORLD THE SOCIETY MITFORD LOVED IS PRETTY MUCH GONE THE SELFISH HEEDLESS AESTHETIC OF THE UPPER CLASSES THEIR SENSE OF ENTITLEMENT HAS VANISHED EVEN BY HER DEATH IN 1973 AFTER A LONG PAINFUL SIEGE OF CANCER MOST OF HER CIRCLE HAD DIED MITFORD'S NOVELS WHICH INCLUDE THE PURSUIT OF LOVE LOVE IN A COLD CLIMATE AND THE BLESSING AREN'T MUCH READ AT LEAST IN THE US I SUSPECT THAT THE LETTERS WILL NOT ATTRACT A WIDE AUDIENCE HERE EITHER THEY ARE FULL OF NICKNAMES NAMES AND REFERENCES THAT READERS CAN FOLLOW ONLY WITH THE HELP OF EDITOR'S NOTES WHAT'S MORE THERE IS A SAMENESS TO THEM EACH SUMMER AFTER A CERTAIN POINT THERE WAS THE ANNUAL TRIP TO THE SOUTH OF FRANCE AND VENICE LUNCHEON FOLLOWED LUNCHEON AND DINNER FOLLOWED DINNER WHILE IN BETWEEN MITFORD WORKED ON HER BOOKS THERE WASN'T MUCH ACTION IN HER LIFE IT WOULD HAVE BEEN FUN TO SIT NEXT TO MITFORD AT ANY PARTY FOR MANY OF HER CORRESPONDENTS SHE MUST HAVE BEEN A CHARMING AMUSING FIGURE BUT SHE WASN'T REFLECTIVE OR ANALYTICAL WHEN WAUGH URGED HER TO EXTENSIVELY REWRITE ONE OF HER NOVELS SHE PROTESTED THAT SHE'D ALREADY WORKED HARD AND DONE HER BEST I CAN'T DO MORE REALLY THAN SKATE OVER SURFACES FOR ONE THING I AM RATHER INSENSITIVE AS YOU KNOW & FOR ANOTHER NOT VERY CLEVER SHE TOLD HIM ON THE CLEVERNESS SHE WAS BEING MODEST BUT FOR THE REST MITFORD WAS AS CLEAREYED ABOUT HER OWN LIMITS AS ABOUT THE WEAKNESSES OF OTHERS 9312170113 931217 WHO'S NEWS DUN & BRADSTREET CORP DUN & BRADSTREET CORP NEW YORK GAIL F LIEBERMAN WAS NAMED TO THE NEWLY CREATED POSITION OF CHIEF FINANCIAL OFFICER AT MOODY'S INVESTORS SERVICE INC A UNIT OF THIS BUSINESS INFORMATION SERVICES COMPANY EFFECTIVE JAN 17 MS LIEBERMAN WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT SCALI MCCABE SLOVES INC A NEW YORK ADVERTISING AGENCY 9312170112 931217 BRITISH CONCERNS LEAD RENEWED SPREE OF BUYING UP AMERICAN COMPANIES BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL BRITISH COMPANIES ARE LEADING A RENEWED BUYING SPREE OF AMERICAN CONCERNS REESTABLISHING THE UK AS THE LARGEST DIRECT FOREIGN INVESTORS IN US BUSINESS TO DATE A REPORT BASED ON GOVERNMENT STATISTICS SHOWS JAPANESE COMPANIES HAD TAKEN OVER LAST YEAR AS THE BIGGEST FOREIGN INVESTOR IN US COMPANIES BUT WITH ENGLAND'S ECONOMY RECOVERING THIS YEAR THAT COUNTRY'S CORPORATE INVESTORS HAVE BECOME MORE VENTURESOME THAN THE JAPANESE WHOSE ECONOMY REMAINS TROUBLED ACCORDING TO A NEW ANALYSIS FOREIGN DIRECT INVESTMENT IN THE US BY ARTHUR ANDERSEN & CO THERE WAS AN OVERALL REBOUND IN FOREIGN DIRECT INVESTMENT AS CORPORATE INVESTORS FROM OTHER COUNTRIES INCLUDING GERMANY AND THE NETHERLANDS STEPPED UP THEIR INTEREST IN SETTING UP OR ACQUIRING US UNITS OR MAKING SIZABLE INVESTMENTS HERE AFTER FALLING TO 29 BILLION LAST YEAR FROM A HIGH OF 68 BILLION IN 1989 FOREIGN DIRECT INVESTMENT THROUGH THE FIRST NINE MONTHS OF 1993 WAS RUNNING AT A 28 BILLION ANNUALIZED RATE ACCORDING TO THE BUREAU OF ECONOMIC ANALYSIS JAPAN LOST ITS LEAD AFTER ITS CORPORATE INVESTMENTS AT HISTORICAL COST REACHED A CUMULATIVE 967 BILLION LAST YEAR MOSTLY FROM A SURGE OF INVESTMENTS IN US MANUFACTURING ENTERTAINMENT AND REAL ESTATE IN THE LATE 1980S AND EARLY THIS DECADE CUMULATIVE UK INVESTMENTS FELL MORE THAN 5 BILLION TO 947 BILLION LAST YEAR AS SOME HOLDINGS EITHER LOST MONEY OR WERE SOLD THROUGH THE FIRST NINE MONTHS OF THIS YEAR HOWEVER CORPORATE INVESTORS FROM BRITAIN INJECTED 48 BILLION IN NET CAPITAL INTO US COMPANIES ACCORDING TO DATA DISCLOSED THIS WEEK FROM THE BUREAU OF ECONOMIC ANALYSIS IN CONTRAST JAPANESE COUNTERPARTS WHOSE NET CAPITAL FLOW INTO THE US IN 1989 AND 1990 HAD BEEN 361 BILLION ACCOUNTED FOR A SCANT 300 MILLION IN NET CAPITAL FLOW THIS YEAR LEADING THE BRITISH CHARGE WERE SEVERAL LARGE DEALS THAT BROUGHT THE FACE VALUE OF COMPLETED DEALS BY UK INVESTORS IN THE FIRST NINE MONTHS TO 22 BILLION ACCORDING TO SECURITIES DATA CO WHICH TRACKS MERGERS AND ACQUISITIONS THE GOVERNMENT'S DATA ARE SMALLER BECAUSE IT DOESN'T INCLUDE DEBT FINANCED IN THE US FOR SUCH ACQUISITIONS LARGE BRITISH DEALS THIS YEAR INCLUDED THE 307 MILLION ACQUISITION OF MERCK'S CALGON WATER MANAGEMENT DIVISION BY ENGLISH CHINA CLAYS PLC AND CADBURY SCHWEPPES PLC'S 231 MILLION PURCHASE OF A 20 STAKE IN DR PEPPER/SEVENUP THE SOFTDRINK COMPANY BRINGING ITS TOTAL TO 25 THE RECOVERY OF THE US ECONOMY AHEAD OF WESTERN EUROPE ALONG WITH LOW INTEREST RATES WAS CITED BY INVESTMENT EXPERTS FOR ATTRACTING INVESTMENTS INTO AMERICAN COMPANIES ALSO SAID ANDREW KANE AN ARTHUR ANDERSEN PARTNER THE US CONTINUES TO BE SEEN AS A SAFE HAVEN FOR CAPITAL AND THE PRIME FOREIGN MARKET FOR A NUMBER OF COUNTRIES THE REPORT BY THE ACCOUNTING AND CONSULTING FIRM NOTED THAT DESPITE ALL OF THE ATTENTION JAPANESE INVESTMENTS HAD RECEIVED JAPANESE INVESTORS OWNED ONLY ABOUT 2 OF THE NET WORTH OF US COMPANIES AS OF A FEW YEARS AGO THE REPORT ALSO NOTED THAT US AFFILIATES OF JAPANESE COMPANIES ACCOUNTED FOR ONLY 05 OF THE NATION'S EMPLOYMENT MORE THAN 47 MILLION AMERICANS WORK IN COMPANIES OWNED BY FOREIGN CORPORATIONS OR THEIR US AFFILIATES SAID THE REPORT WHICH WAS A JOINT VENTURE WITH INTERNATIONAL BUSINESS MAGAZINE IT ADDED THAT NEARLY 90 OF TOTAL FOREIGN DIRECT INVESTMENT IN THE US CAME FROM MULTINATIONAL CORPORATIONS IN THE WORLD'S MAJOR INDUSTRIALIZED NATIONS WITH THE NETHERLANDS CANADA GERMANY AND FRANCE TRAILING THE UK AND JAPAN AS THE LARGEST PARTICIPANTS MR KANE AND OTHERS EXPECT THE REBOUND IN SUCH INVESTMENTS TO CONTINUE PERSEPHONE ECONOMOU A CONSULTANT TO THE WORLD BANK SAYS RECENT TRADE AGREEMENTS WILL INCREASE THE INTEREST OF FOREIGN CORPORATIONS IN HAVING MANUFACTURING FACILITIES IN COUNTRIES WHERE EFFICIENCIES ARE GREATEST FREE TRADE ALLOWS MORE INTERFIRM MOVEMENTS OF CERTAIN COMPONENTS PRODUCED OUTSIDE THE COUNTRY WHERE ASSEMBLY FACILITIES ARE SITUATED WITHOUT SUCH AGREEMENTS AS THE NORTH AMERICAN FREE TRADE AGREEMENT AND THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE PROSPECT OF CONTINUING TARIFFS ON IMPORTED GOODS WOULD HAVE MADE SUCH INVESTMENTS LESS LIKELY SHE ADDED 9312170111 931217 STANDARD PRODUCTS PLACES NOTES CLEVELAND STANDARD PRODUCTS CO SAID IT COMPLETED THE PRIVATE PLACEMENT OF 75 MILLION OF 655 SENIOR NOTES DUE DEC 16 2003 TO METROPOLITAN LIFE INSURANCE CO PRINCIPAL PAYMENTS WILL BEGIN IN DECEMBER 1998 THE MANUFACTURER OF RUBBER AND PLASTIC PARTS FOR THE AUTOMOTIVE INDUSTRY SAID IT WILL USE PROCEEDS FROM THE PLACEMENT TO REFINANCE PART OF EXISTING DEBT UNDER ITS REVOLVING CREDIT AGREEMENT 9312170110 931217 BUSINESS BRIEF MESA AIRLINES INC REGIONAL CARRIER TO ACQUIRE SOME CROWN AIRWAYS ASSETS MESA AIRLINES INC SAID IT WILL ACQUIRE GROUND EQUIPMENT AND FACILITIES FROM PRIVATELY HELD CROWN AIRWAYS INC MESA A REGIONAL CARRIER BASED IN FARMINGTON NM SAID IT WILL USE THE ASSETS TO BEGIN OPERATING THE USAIR EXPRESS SERVICE THAT CROWN FLEW OUT OF USAIR GROUP INC'S PITTSBURGH HUB MESA WILL CALL ITS NEW OPERATION LIBERTY EXPRESS MESA EXPECTS THE NEW ROUTES WILL ADD MORE THAN 20 MILLION IN REVENUE ONCE THE TRANSITION IS COMPLETED IN APRIL MESA HAD REVENUE OF 354 MILLION IN THE FISCAL YEAR ENDED SEPT 30 MESA THE LARGEST INDEPENDENTLY OWNED REGIONAL CARRIER HAS SEVEN DIFFERENT AIRLINE OPERATIONS FLYING TO 152 CITIES 9312170109 931217 AMERICAN ELECTRIC CUTS JOBS COLUMBUS OHIO AMERICAN ELECTRIC POWER CO SAID IT IS CUTTING AN ADDITIONAL 90 JOBS IN THE FINAL PHASE OF A RESTRUCTURING PROJECT STARTED IN NOVEMBER 1992 THE RESTRUCTURING WILL CUT A TOTAL OF 1040 JOBS OR ABOUT 5 OF THE COMPANY'S WORK FORCE IT INCLUDES THE OPERATIONAL CONSOLIDATION OF TWO UNITS COLUMBUS SOUTHERN POWER CO AND OHIO POWER CO AND A STUDY OF STAFFING AT THE COMPANY'S AEP SERVICE CORP WHICH PROVIDES ENGINEERING AND TECHNICAL SERVICES TO THE OPERATING UNITS 9312170108 931217 PROPOSED UAL BUYOUT IS SEEN AS MODEL FOR EMPLOYEEOWNERSHIP CLINTON SEEKS BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO WHILE ITS DIRECTORS HAVEN'T CLEARED IT YET THE PROPOSED 45 BILLION EMPLOYEE BUYOUT OF A MAJORITY OF UAL CORP STOCK ALREADY IS BEING TOUTED AS THE MODEL OF EMPLOYEEOWNERSHIP THE CLINTON ADMINISTRATION SEEKS THE BOARD OF UNITED AIRLINES' PARENT MEETING YESTERDAY DIDN'T SIGNAL WHETHER IT WILL APPROVE THE SWEETENED UNION PROPOSAL WHICH IS VALUED AT 173 A SHARE THE DIRECTORS ASKED UAL'S FINANCIAL ADVISERS CS FIRST BOSTON INC AND LAZARD FRERES & CO TO RESOLVE OUTSTANDING ISSUES WITH THE UNIONS AND TO SUBMIT A FINANCIAL ASSESSMENT AT A BOARD MEETING SET FOR WEDNESDAY BUT CHANCES ARE THEY WILL APPROVE SOME PLAN LIKE THIS ONE GIVEN THAT CHAIRMAN STEPHEN M WOLF FAMILIAR WITH THE BOARD'S WISHES HAD A HAND IN ITS NEGOTIATION THIS WEEK THE NEW OFFER IS ALSO SIGNIFICANTLY HIGHER THAN THE UNIONS' PREVIOUS PROPOSAL VALUED BY MANAGEMENT AT 140 A SHARE THAT DIRECTORS LAST MONTH REJECTED AS INADEQUATE IF THE DEAL IS COMPLETED UNITED WILL BECOME THE BIGGEST US COMPANY TO BE MAJORITYOWNED BY ITS WORKERS AND THE ONLY MAJOR AIRLINE CONTROLLED BY EMPLOYEES THE BARGAINING WAS NUDGED ALONG QUIETLY AND STRATEGICALLY BY OFFICIALS AT THE LABOR DEPARTMENT ACTING ON PRESIDENT CLINTON'S BELIEF THAT EMPLOYEEOWNERSHIP COULD BE A CUTTINGEDGE APPROACH FOR THE AMERICAN WORKPLACE THE ADMINISTRATION HAS A COMMITMENT TO EMPLOYEE OWNERSHIP SAID MARTIN MANLEY A LABOR DEPARTMENT OFFICIAL WHO WORKED WITH UNITED TO KEEP THE BUYOUT NEGOTIATIONS ON TRACK FOR ALL ITS PROGRESSIVE IDEALS AND COOPERATIVE PROMISE HOWEVER THE BUYOUT PLAN IN WHICH MOST OF THE 76000 WORKERS AT THE NATION'S LARGEST AIRLINE WOULD ACCEPT DEEP PAY CUTS AND WORK HARDER TO MAKE THE CARRIER MORE COMPETITIVE WAS BORN IN A MEANSPIRITED CLIMATE OF MISTRUST AND INTIMIDATION THE COMPANY STILL FACES THE TASK OF DISMANTLING A LEGACY OF WOUNDED MORALE AND RIFTS AMONG LABOR GROUPS SO DEEP THAT SOME INSIDERS CALL THE PLACE DIVIDED AIRLINES MUCH OF THIS IN THE PAST YEAR WAS THE DOING OF MR WOLF IT IS WIDELY BELIEVED IN AIRLINE AND LABOR CIRCLES THAT THE 52YEAROLD CHIEF EXECUTIVE OFFICER HAS BEEN ANGLING ALL YEAR FOR A HIGHLEVEL POST IN THE CLINTON ADMINISTRATION HOPING TO ENHANCE HIS PROFILE IN WASHINGTON BY TOPPING HIS RESUME WITH THE UNITED EMPLOYEE BUYOUT THE LABOR DEPARTMENT COVETS MR WOLF HAS DENIED SUCH AN INTEREST SOME OF HIS SUPPORTERS SAY MR WOLF WAS SIMPLY PLAYING HARDBALL WITH THE UNIONS TO EXTRACT THE HIGHEST PRICE HE COULD YESTERDAY THE STOCK MARKET HAVING SEEN UNITED'S UNIONS AND MANAGEMENT UNSUCCESSFULLY GO TO THE ALTAR SEVERAL TIMES SINCE 1987 WASN'T READY TO BLESS ANY MARRIAGE YET IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING UAL STOCK FELL 4375 OR 29 TO 14425 IF THERE IS A MARRIAGE THOUGH MAJOR RIVALS LIKE AMR CORP'S AMERICAN AIRLINES DELTA AIR LINES AND USAIR GROUP INC ARE EXPECTED TO FOLLOW UNITED TURNING OVER LARGE STAKES TO THEIR EMPLOYEES UNLESS THEY DO UNITED MAY HAVE A SIGNIFICANT EDGE OVER THEM THE UNION COALITION HAS PROPOSED WORKRULE CHANGES AND WAGE CUTS THAT WILL SLASH UNITED'S LABOR COSTS BY 35 BILLION OVER THE NEXT SEVERAL YEARS THE PROPOSAL ALSO ALLOWS UNITED TO CREATE A SEPARATE LOWERCOST AIRLINE STAFFED BY EXISTING UNITED PILOTS AND OTHER EMPLOYEES FOR THE FIRST TIME ONE OF THE MAJOR AIRLINES COULD REALLY CHALLENGE SOUTHWEST AIRLINES THE LOWCOST LOWFARE CARRIER WITH LESSRESTRICTIVE WORK RULES MARKET FORCES WILL COMPEL THE OTHER AIRLINES TO JUMP IN RIGHT BEHIND UNITED SAID KEVIN MURPHY AIRLINE ANALYST FOR MORGAN STANLEY & CO SOME AVIATION ANALYSTS SAY THE HIGHSKILL AND EDUCATION LEVELS OF AIRLINE WORKERS COMBINED WITH THEIR RELATIVE INDEPENDENCE ON THE JOB MAKE THEM PARTICULARLY STRONG CANDIDATES FOR TAKING A LARGER ROLE IN CORPORATE GOVERNANCE AS FRONTLINE SERVICE WORKERS IT IS PILOTS AND FLIGHT ATTENDANTS NOT MANAGEMENT WHO ARE REALLY RESPONSIBLE FOR WHETHER OR NOT SOMEONE COMES BACK TO AN AIRLINE SAID JOHN ADAMS AN AVIATION AND LABOR CONSULTANT OTHERS HOWEVER HAVE DOUBTS ABOUT TURNING OVER MANAGEMENT RESPONSIBILITIES TO LABOR EVEN IF THEY ARE HELD IN CHECK SOMEWHAT BY DIRECTORS REPRESENTING MINORITY SHAREHOLDERS AS WELL UNIONS FUNDAMENTALLY UNDERSTAND JOB SECURITY AND COST ISSUES SAID AARON GELLMAN DIRECTOR OF NORTHWESTERN UNIVERSITY'S TRANSPORTATION CENTER BUT HAVE LITTLE EXPERTISE IN MARKETING OR SERVICE QUALITY WHATEVER THE CASE THE OTHER MAJOR AIRLINES PROBABLY WON'T TAKE THE ROUTE MR WOLF CHOSE A HIGHSTAKES GAMBLE TO STRONGARM THE UNIONS INTO NEGOTIATING A BUYOUT OR FACE JOB LOSSES EVEN AS UNITED BEGAN NEGOTIATING WITH LABOR TO ACQUIRE A UAL STAKE MR WOLF THIS SUMMER ANNOUNCED A CONTROVERSIAL PLAN TO SELL OFF THE COMPANY'S CATERING DIVISION LOPPING OFF SOME 5000 WORKERS IN THE PROCESS THE MOVE INFURIATED THE MACHINISTS UNION REPRESENTING THE KITCHEN WORKERS WHICH VOWED TO WALK FROM THE NEGOTIATIONS IF MR WOLF PROCEEDED WITH THE SALE BUT THE SALE IS PROCEEDING STARTING LAST MONTH LABOR LASHED BACK ON ONE UNITED FLIGHT EACH APPLE IN THE PASSENGER SNACK BASKETS HAD A BITE TAKEN OUT OF IT IN CHICAGO RAMP WORKERS SUBSTITUTING FOR COLLEAGUES WHO CALLED IN SICK ONE DAY FOUND THEIR TIRES SLASHED WHEN THEIR SHIFT ENDED GROUNDS CREWS AROUND THE COUNTRY BEGAN OBSERVING THE FIVE MILES PER HOUR SPEED LIMIT SLOWING LUGGAGE CARTS OUT TO THE PLANES PILOTS STARTED TAXIING PLANES OUT TO RUNWAYS AT A SNAIL'S PACE MR WOLF WHO WAS IN THE BOARD MEETING YESTERDAY AND UNAVAILABLE FOR INTERVIEWS HAS REPEATEDLY SAID THAT HE PREFERRED TO DEVELOP A SOLUTION TO THE COMPANY'S HIGHCOST STRUCTURE IN CONCERT WITH UNITED'S UNIONS BUT IF THAT DIDN'T WORK HE MAINTAINED HE WOULD BE FORCED TO SELL DIVISIONS AND CONTRACT OUT MAINTENANCE AND FLIGHT OPERATIONS MOVES THAT WOULD CUT COSTS AND THOUSANDS OF UNITED JOBS BUT THE EFFECT OF MR WOLF'S MANEUVERS DURING THE BUYOUT NEGOTIATIONS THE CARROTANDHAMMER APPROACH AS ONE OF HIS FORMER LIEUTENANTS CALLS IT PARTICULARLY PROVOKED THE UNIONS HE WAS STICKING THINGS IN THEIR EYES LEFT AND RIGHT AND AT THE SAME TIME SAYING LET'S SIT DOWN AND NEGOTIATE' SAID THE FORMER UNITED EXECUTIVE MR WOLF DIDN'T HAVE THE TRUMP CARD THAT OTHER LESS HEALTHY CARRIERS COULD USE TRANS WORLD AIRLINES WON LABOR CONCESSIONS FROM ITS EMPLOYEES TO GET OUT OF BANKRUPTCYLAW PROTECTION AND NORTHWEST AIRLINES DID SO TO AVOID HAVING TO MAKE SUCH A FILING UNION OFFICIALS AGREE THAT MR WOLF'S MOVES ESPECIALLY A PLAN LAST SUMMER FOR A STRIPPEDDOWN CARRIER BECAME A LIGHTNING ROD THAT HASTENED COMPLETION OF THE EMPLOYEE BUYOUT PROPOSAL THIS IS A DEAL WE WERE FORCED INTO SAID A SPOKESMAN FOR THE INTERNATIONAL ASSOCIATION OF MACHINISTS AS EMPLOYEES WE MAY END UP WITH CONTROL BUT WE HAVE SOME SERIOUS MORALE PROBLEMS TO WORK THROUGH HE WAS ALLUDING TO THE ABSENCE FROM THE NEGOTIATIONS OF THE FLIGHT ATTENDANTS' UNION REPRESENTING ONEFIFTH OF UNITED'S WORK FORCE THE FLIGHT ATTENDANTS BOWED OUT OF THE TALKS AFTER UNITED IN SEPTEMBER OPENED A CABIN ATTENDANT BASE IN TAIWAN WHICH THE UNION SAW AS AN ATTEMPT TO RID THE COMPANY OF HIGHERPAID SENIOR FLIGHT ATTENDANTS THE FLIGHT ATTENDANTS ALSO RESENTED IT WHEN PILOTS AND MACHINISTS CONTINUED TO NEGOTIATE WITH MANAGEMENT THE UNION COALITION HAS CHOSEN GERALD GREENWALD THE FORMER VICE CHAIRMAN OF CHRYSLER CORP TO BE CHIEF EXECUTIVE SHOULD THEY TAKE CONTROL DEPENDING ON HOW WELL THE DIFFERENCES ARE SMOOTHED OVER MR WOLF MAY STILL BE ABLE TO PARLAY THE UNITED DEAL INTO A POST IN WASHINGTON IT ISN'T CLEAR PRECISELY WHAT KIND OF ASSIGNMENT MR WOLF FAVORS ALTHOUGH HE HAS LONG HAD A SPECIAL INTEREST IN EDUCATION MR WOLF WHO STANDS 6 FEET 6 INCHES TALL HAS BEEN RAISING HIS STATURE IN WASHINGTON IN JANUARY HE CALLED ON PRESIDENT CLINTON TO FORM THE NATIONAL AIRLINE COMMISSION THAT SUBSEQUENTLY STUDIED INDUSTRY WOES AND HE HAS HAD SEVERAL MEETINGS WITH OFFICIALS OF THE TRANSPORTATION AND LABOR DEPARTMENTS TO UPDATE THEM ON THE STATUS OF THE EMPLOYEE BUYOUT HE IS ALSO HAVING A HOME BUILT IN MIDDLEBURG VA CLOSE TO WASHINGTON 9312170107 931217 NEXT YEAR'S GRADUATES WILL FIND JOB SCENE IMPROVED FROM 1993 EVANSTON ILL COLLEGE STUDENTS GRADUATING NEXT SPRING WILL FIND JOB OPPORTUNITIES SLIGHTLY IMPROVED OVER THOSE ENCOUNTERED BY 1993 GRADUATES ACCORDING TO NORTHWESTERN UNIVERSITY'S ANNUAL FORECAST BUT THEY'LL STILL FACE A JOB MARKET THAT IS MIXED CONFUSING AND COMPETITIVE ACCORDING TO VICTOR R LINDQUIST ASSOCIATE DEAN AND DIRECTOR OF PLACEMENT AT NORTHWESTERN AND AUTHOR OF THE 1994 LINDQUISTENDICOTT REPORT IT'S NOT A TIME OF DESPERATION BUT A PERIOD FOR GOOD PLANNING AND PERSISTENCE HE SAID GRADUATES WILL AGAIN FACE STIFF COMPETITION FROM EXPERIENCED JOB SEEKERS AS THEY DID IN THE SPRING OF 1993 THE REPORT SAYS FOR STUDENTS WITH A BACHELOR'S DEGREE OVERALL JOB OPPORTUNITIES WILL INCREASE AN AVERAGE OF 2 BUT THE OVERALL DEMAND FOR THOSE WITH MASTER'S DEGREES WILL DROP A LIKE AMOUNT NORTHWESTERN SURVEYED 264 PRIMARILY MIDSIZE AND LARGE COMPANIES IN 30 STATES NATIONWIDE FOR THIS YEAR'S SURVEY AMONG THE FINDINGS ENGINEERING STUDENTS WITH BACHELOR'S DEGREES WILL SEE AVERAGE STARTING SALARIES RISE 21 TO 35736 ACCOUNTING GRADUATES WILL SEE A 3 INCREASE TO 28860 GRADUATES WITH SALES/MARKETING DEGREES WILL SEE AN AVERAGE STARTING SALARY OF 28452 OFF A FRACTION OF A PERCENTAGE POINT NEW MBAS WITH TECHNICAL BACHELOR OF SCIENCE UNDERGRADUATE DEGREES WILL SEE A 74 INCREASE IN AVERAGE STARTING SALARY TO 51540 BUT MBAS WITH NONTECHNICAL BACHELOR OF ARTS UNDERGRADUATE DEGREES WILL SEE A MORE MODERATE 34 INCREASE TO 49584 AT THE COMPANIES SURVEYED 46 OF THEM SAID THEY PLAN TO INCREASE HIRING OF BACHELORDEGREELEVEL GRADUATES WHILE 32 SAID THEY ANTICIPATE A DECREASE IN SUCH HIRING 9312170106 931217 ECONOMY TRADE DEFICIT OF US SHRANK IN OCTOBER NATION'S EXPORTS IN MONTH ROSE 32 TO RECORD IMPORTS ALSO HIT A HIGH BY DAVID MULHOLLAND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US IMPORTS AND EXPORTS ROSE TO RECORDS IN OCTOBER AND THE MERCHANDISETRADE DEFICIT SHRANK TO 1046 BILLION FROM 1062 BILLION IN SEPTEMBER THE COMMERCE DEPARTMENT SAID DESPITE THE SLIGHT IMPROVEMENT IN OCTOBER THE TRADE DEFICIT HAS MOSTLY DETERIORATED IN THE PAST 18 MONTHS ANALYSTS NOTED THAT FOR MOST OF THIS YEAR THE MONTHLY DEFICITS HAVE BEEN MORE THAN 10 BILLION MATCHING HISTORICAL HIGHS REACHED IN THE LATE 1980S SO FAR THIS YEAR THE MERCHANDISETRADE DEFICIT IS 30 BILLION LARGER THAN IT WAS A YEAR AGO THE MERCHANDISETRADE BALANCE DOESN'T INCLUDE THE US SURPLUS IN SERVICES IT'S THE PRICE WE PAY FOR RELATIVELY HIGH GROWTH RATES COMPARED TO OUR MAJOR TRADING PARTNERS SAID MICHAEL PENZER VICE PRESIDENT OF BANK OF AMERICA IN SAN FRANCISCO ECONOMIC RECOVERY IN THE US HAS INCREASED IMPORTS WHILE EUROPE'S AND JAPAN'S ECONOMIC WOES HAVE KEPT OVERALL EXPORTS RELATIVELY FLAT EXPORTS WENT UP 32 TO 4011 BILLION IN OCTOBER AND IMPORTS ROSE 2 TO 5057 BILLION THOUGH THE OVERALL TRADE DEFICIT DECREASED BY ALMOST 200 MILLION IN OCTOBER THE DEFICIT WITH JAPAN JUMPED TO 609 BILLION FROM THE PREVIOUS MONTH'S 533 BILLION REACHING THE HIGHEST LEVEL SINCE NOVEMBER 1986 OCTOBER'S FIGURES REINFORCE THIS YEAR'S TRADE TRENDS HIGHTECHNOLOGY EXPORTS HAVE INCREASED WHILE EXPORTS OF RAW MATERIALS SEMIPROCESSED GOODS AND AEROSPACE ITEMS HAVE SHRUNK COMPUTERS AND RELATED PARTS MADE UP NEARLY 10 OF IMPORTS ANOTHER SIGN THAT A COMPUTER BOOM IS CONTINUING IN THE US CIVILIAN AIRCRAFT EXPORTS INCREASED FROM THE PREVIOUS MONTH BUT WERE DOWN FROM LAST YEAR REFLECTING THE SOFT WORLD AIRLINE MARKET AND THE COMPETITION US AIRCRAFT MAKERS FACE FROM EUROPE'S SUBSIDIZED AIRBUS INDUSTRIE GOLD EXPORTS TO ASIA WERE UP IN OCTOBER IN A CONTINUING TREND JANUARYTOOCTOBER EXPORTS OF GOLD WERE MORE THAN DOUBLE THOSE IN THE FIRST 10 MONTHS OF 1992 BRIAN HORRIGAN AN ECONOMIST AT LOOMIS SAYLES & CO SAID INCREASED GOLD EXPORTS WERE LARGELY A RESULT OF CHINESE BUYING GOLD AS A HEDGE AGAINST INFLATION AND FOR JEWELRY AUTOMOTIVE IMPORTS AND EXPORTS BOTH INCREASED AS LOW INTEREST RATES PROMPTED CONSUMERS TO MAKE CAR AND TRUCK PURCHASES MUCH OF THE ACTIVITY RESULTED FROM AUTO PARTS CROSSING THE CANADIAN AND MEXICAN BORDERS IN THE ALREADYINTEGRATED NORTH AMERICAN MOTOR VEHICLE MANUFACTURING ZONE MR HORRIGAN SAID BEGINNING WITH JANUARY STATISTICS THE MONTHLY MERCHANDISE TRADE REPORT WILL BE REPLACED WITH A NEW REPORT JOINTLY ISSUED BY THE CENSUS BUREAU AND THE BUREAU OF ECONOMIC ANALYSIS THE NEW REPORT WILL PROVIDE COMBINED TOTALS ON US TRADE IN BOTH MERCHANDISE AND SERVICES IN A SEPARATE REPORT THE GOVERNMENT SAID NEW STATE UNEMPLOYMENT CLAIMS DROPPED 7000 TO 330000 IN THE WEEK ENDED DEC 11 THE FOURWEEK AVERAGE FOR NEW CLAIMS WAS 332000 DOWN FROM 334000 IN THE PREVIOUS WEEK THE NUMBER OF PEOPLE RECEIVING UNEMPLOYMENT INSURANCE FELL 116000 TO 2701000 IN THE WEEK ENDED DEC 4 ALL FIGURES ARE ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9312170105 931217 TECHNOLOGY 3DO CO POSTPONES ITS PLANNED OFFER OF COMMON STOCK BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL THE REDWOOD CITY CALIF CONCERN SAID IT WOULD SHELVE UNTIL AT LEAST AFTER THE FIRST OF THE YEAR THE PROPOSED OFFERING OF ONE MILLION COMMON SHARES CITING UNFAVORABLE STOCK MARKET CONDITIONS PROCEEDS WERE TO HAVE HELPED FUND OPERATING EXPENSES AND CAPITAL SPENDING OF MORE THAN 60 MILLION OVER THE NEXT 18 MONTHS 3DO SAID IT HAS NO IMMEDIATE NEED FOR THE EXTRA CASH SINCE IT HAS MONEY ON HAND THE MOVE GENERATED RENEWED ANXIETY AMONG TRADERS ON WALL STREET WHERE 3DO'S STOCK VALUE HAS FALLEN BY MORE THAN 50 IN RECENT WEEKS THE STOCK OPENED AT 1850 A SHARE WHEN 3DO WENT PUBLIC LAST MAY AND SOARED TO A HIGH OF 4825 IN OCTOBER AS INVESTORS BET THAT 3DO'S NEW TECHNOLOGY FOR INTERACTIVE ENTERTAINMENT WOULD PROVE A ROUSING MARKET SUCCESS BUT THE STOCK FELL AFTER REPORTS BY SUCH MARKET WATCHERS AS DAN DORFMAN ON CNBC THAT SALES OF THE 3DO INTERACTIVE MULTIPLAYER SYSTEM APPEARED TO BE RUNNING LOWER THAN SOME INVESTORS EXPECTED 3DO'S STOCK CLOSED YESTERDAY AT 2375 UP 25 CENTS IN NASDAQ STOCK MARKET TRADING WHAT IT POSTPONING THE OFFERING SAYS IS VERY SIMPLE IF THE STOCK HAD BEEN SELLING FOR 40 A SHARE THEY WOULD HAVE DONE THIS OFFERING SAID LEE ISGUR AN ANALYST FOR VOLPE WELTY & CO OFFICIALS OF 3DO WOULD NOT DIVULGE SALES FIGURES FOR THE PLAYER BEING MARKETED BY MATSUSHITA ELECTRIC INDUSTRIAL CO UNDER THE PANASONIC BRAND HOWEVER SOME ANALYSTS SAID THEY BELIEVE ABOUT 30000 OF THE PLAYERS HAD BEEN SOLD THROUGH NOVEMBER SINCE THE PRODUCT'S LAUNCH IN OCTOBER AND THAT THEY EXPECTED TOTAL SALES OF BETWEEN 40000 AND 50000 THROUGH CHRISTMAS MATSUSHITA IS A 3DO INVESTOR ALONG WITH SUCH OTHER MAJOR COMPANIES AS AMERICAN TELEPHONE & TELEGRAPH CO AND TIME WARNER INC BECAUSE 3DO HAD INDICATED IN PUBLIC FILINGS THAT IT EXPECTED LESS THAN 100000 PLAYERS TO BE SOLD DURING THE CHRISTMAS SEASON THE ACTIVITY WOULD APPEAR TO FALL IN LINE WITH WHAT COMPANY OFFICIALS ANTICIPATED MORE RECENTLY 3DO INDICATED THAT PANASONIC HAD SHIPPED ABOUT 50000 PLAYERS TO RETAILERS WE REALLY FEEL THAT WE ARE EXACTLY WHERE WE HAD PLANNED TO BE AT THIS POINT SAID 3DO SPOKESWOMAN DIANE HUNT BUT SOME ANALYSTS SAID 3DO WAS SO HEAVILY HYPED ON WALL STREET THAT ANYTHING BELOW BLOCKBUSTER SALES IS A DISAPPOINTMENT PEOPLE WERE EXPECTING THIS TO MOVE OFF THE SHELVES LIKE NOBODY'S BUSINESS SAID MARK MACGILLIVRAY OF H&M CONSULTING IN SUNNYVALE CALIF 9312170104 931217 JAPAN'S STEEL OUTPUT TO FALL 47 TO 67 IN NEXT FISCAL YEAR TOKYO JAPAN'S STEEL INDUSTRY LOOKS FOR ITS FLAGGING OUTPUT TO FALL STILL FURTHER IN THE NEXT FISCAL YEAR PRODUCTION FOR THE YEAR BEGINNING APRIL 1 WILL FALL BETWEEN 47 AND 67 TO BETWEEN 90 MILLION METRIC TONS AND 92 MILLION METRIC TONS AMID SLUGGISHNESS OF DEMAND BOTH AT HOME AND ABROAD THE JAPAN IRON AND STEEL FEDERATION FORECAST IF THE PREDICTION PROVES CORRECT JAPAN'S STEEL OUTPUT WILL FALL SHORT OF YEAREARLIER LEVELS FOR THE FOURTH FISCAL YEAR IN A ROW EXTENDING THE ALREADYWORST STRING OF DECLINES IN POSTWAR HISTORY MOREOVER THE PREDICTION MEANS THAT OUTPUT WOULD COME IN UNDER 100 MILLION METRIC TONS FOR THE THIRD YEAR IN A ROW THE FEDERATION RECKONED THAT STEEL OUTPUT FOR THE CURRENT FISCAL YEAR WILL BE DOWN 25 TO ROUGHLY 965 MILLION TONS FROM 9894 MILLION TONS PRODUCED IN THE FISCAL YEAR ENDED MARCH 31 EVEN ASSUMING THAT THE GOVERNMENT WILL TAKE ADDITIONAL ECONOMIC STEPS SUCH AS CUTTING INCOME TAXES AND BOOSTING PUBLICWORKS SPENDING THE ASSOCIATION SAID THE TEMPO OF RECOVERY IN STEEL DEMAND WOULD BE MILD WITH THOSE FISCAL STEPS THE ECONOMY WILL FINALLY HIT THE BOTTOM OF THE CURRENT DOWNTURN IN THE SECOND HALF OF THE COMING FISCAL YEAR AND BEGIN A MODERATE RECOVERY BUT REAL GROSS DOMESTIC PRODUCT FOR THE COMING FISCAL YEAR WILL EDGE UP ONLY 05 AFTER CONTRACTING 05 THIS FISCAL YEAR THE FEDERATION PREDICTED GDP IS A GAUGE OF THE OUTPUT OF THE COUNTRY'S GOODS AND SERVICES REAL GDP DISCOUNTS INFLATION MANY ANALYSTS SEE GDP GROWING LESS THAN 1 NEXT FISCAL YEAR JAPAN'S STEEL OUTPUT IN NOVEMBER SLIPPED 91 TO 76 MILLION TONS FROM A YEAR EARLIER BRINGING THE MONTHLY PRODUCTION FIGURE TO ITS LOWEST IN ALMOST SEVEN YEARS RECESSION IN DEMAND FROM SUCH AILING STEELUSING INDUSTRIES AS AUTO AND HOMEAPPLIANCES MAKERS IN JAPAN HAS HELPED KEEP STEEL OUTPUT IN A DOWNWARD TREND MOREOVER DEMAND FROM CONSTRUCTION COMPANIES HAS FALLEN OFF WITH THE ARREST OF EXECUTIVES OF CONTRACTORS FOR ALLEGED BRIBES TO LOCAL POLITICIANS CURBING CURRENT AND PROSPECTIVE PUBLIC WORKS ALSO CURBING STEEL PRODUCTION IS THE FALLOFF IN STEEL SHIPMENTS TO CHINA WHICH HAS BEEN BRAKING ITS ECONOMY 9312170103 931217 DONOHUE SLOCAN FORM FIRM MONTREAL DONOHUE INC AND SLOCAN FOREST PRODUCTS LTD SAID THEY FORMED A JOINT COMPANY TO BUY THE LUMBER AND NEWSPRINT BUSINESS OF FINLAY FOREST INDUSTRIES LTD AT MACKENZIE BRITISH COLUMBIA FOR ABOUT 175 MILLION CANADIAN DOLLARS US1313 MILLION INCLUDING ASSUMED LIABILITIES DONOHUE A QUEBECBASED FORESTPRODUCTS COMPANY AND SLOCAN VANCOUVER BRITISH COLUMBIA WILL HOLD EQUAL SHARES IN THE NEW COMPANY THE TRANSACTION IS EXPECTED TO CLOSE NEXT SPRING SUBJECT TO REGULATORY APPROVALS FINLAY FOREST FORMERLY 50OWNED BY FLETCHER CHALLENGE CANADA LTD HAS BEEN CONTROLLED BY ROYAL BANK OF CANADA SINCE MID1992 DONOHUE AND SLOCAN SAID THEY WILL INVEST ABOUT C110 MILLION TO REBUILD FINLAY'S PULP MILL ENABLING THE COMPLEX TO LOWER COSTS AND OPERATE PROFITABLY 9312170100 931217 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 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 42 DAYS 316 43 TO 119 DAYS 325 120 TO 149 DAYS 328 150 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 333 30 DAYS 333 60 DAYS 334 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 262 TWO MONTHS 267 THREE MONTHS 279 SIX MONTHS 305 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 316 THREE MONTHS 331 SIX MONTHS BANKERS ACCEPTANCES 320 30 DAYS 316 60 DAYS 316 90 DAYS 324 120 DAYS 327 150 DAYS 331 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 5/16 THREE MONTHS 3 7/16 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 609 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 13 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 306 13 WEEKS 326 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 712 60 DAYS 720 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 707 60 DAYS 717 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 9312170099 931217 SPAIN ACTS TO OVERHAUL ELECTRICAL SECTOR ANALYSTS GUESS WHICH UTILITIES WILL GAIN THE MOST BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL MADRID AS THE SPANISH GOVERNMENT FINETUNES THE COMPLICATED PRICING SYSTEM THAT REGULATES SPAIN'S ELECTRICAL SECTOR ANALYSTS ARE TRYING TO DISCERN WHICH UTILITIES STAND TO GAIN THE MOST FROM THE CHANGES NO MATTER WHICH OF THE SIX BIG COMPANIES COMES OUT ON TOP THOUGH ANALYSTS AGREE THE NEW REGULATIONS ARE LIKELY TO BENEFIT THE WHOLE SECTOR AND MANY RECOMMEND THAT INVESTORS WEIGHT THEIR PORTFOLIOS WITH UTILITIES THE CHANGES WHICH THE GOVERNMENT ANNOUNCED THIS MONTH COME AFTER TWO DIFFICULT YEARS FOR SPAIN'S UTILITIES A SEVERE DROUGHT HAS BOOSTED PRODUCTION COSTS WHILE A TRIPLE DEVALUATION OF THE PESETA HAS DRIVEN UP THE VALUE OF THE SECTOR'S FOREIGNCURRENCY DEBT BUT BETTER TIMES MAY LIE AHEAD THE FALL IN INTEREST RATES THIS YEAR HAS SLASHED THE COST OF FINANCING THE SECTOR'S PESETADENOMINATED DEBT HEAVY RAIN IN OCTOBER SOFTENED THE BLOW OF THE DROUGHT WHILE ELECTRICITY DEMAND IN NOVEMBER SHOWED THE FIRST SIGNS OF REVIVING ALTHOUGH FULL DETAILS WON'T BE REVEALED FOR SEVERAL WEEKS THE REGULATORY CHANGES ARE AIMED AT REDUCING THE SECTOR'S DEBT OF 38 TRILLION PESETAS 27 BILLION BY PROMOTING ASSET SWAPS AMONG THE LEADING COMPANIES AND ELIMINATING THE PRICING PRIVILEGES THAT THE STATEOWNED COMPANY EMPRESA NACIONAL DE ELECTRICIDAD OR ENDESA CURRENTLY HAS THE CHANGES WHICH ARE TO BE RETROACTIVE TO JAN 1 1993 ALSO ARE EXPECTED TO OFFER THE SECTOR RELIEF FROM THE LOSSES ON FOREIGN DEBT AND LACK OF RAINFALL FINALLY THE CHANGES INTRODUCE AN INCENTIVE MECHANISM TO IMPROVE SERVICE IN AREAS OF LOW POPULATION DENSITY UNDER THE GOVERNMENTSPONSORED PLAN THE MOST HEAVILY INDEBTED COMPANIES WILL RAISE CASH THROUGH SELLING PRODUCTION ASSETS TO FINANCIALLY HEALTHIER UTILITIES IN RETURN INDEBTED COMPANIES ARE EXPECTED TO FREEZE OR CUT THEIR DIVIDENDS BECAUSE THE REGULATORY CHANGES AND ASSET SWAPS ARE LIKELY TO IMPROVE THE CREDIT QUALITY OF THE ELECTRICALS MOODY'S INVESTORS SERVICE INC SAID THE OUTLOOK FOR POTENTIAL RATING UPGRADES IS POSITIVE FOR BOTH EMPRESA NACIONAL DE ELECTRICIDA AND IBERDROLA SA ENDESA'S SENIOR DOMESTIC DEBT IS RATED DOUBLEA3 AND IBERDROLA'S SENIOR DOMESTIC AND FOREIGNCURRENCY DEBT IS RATED SINGLEA1 ENDESA REMAINS HIGH ON ANALYSTS' LIST OF PREFERENCES PARTICULARLY AS A LONGTERM INVESTMENT UNTIL NOW THE STATEOWNED ELECTRICITY PRODUCER HAS HAD A 38 MARKUP ON THE PRICE OF THE ELECTRICITY IT SELLS TO PRIVATE UTILITIES THE GOVERNMENT GRANTED ENDESA THIS MARKUP AS COMPENSATION FOR HELPING BAIL OUT AILING PRIVATE COMPANIES DURING AN ASSET SWAP IN 1985 THAT COST THE PUBLIC UTILITY MORE THAN 600 BILLION PESETAS 427 BILLION ALTHOUGH ANALYSTS PREDICT CHANGES TO THE PRICING SYSTEM WILL CUT ENDESA'S INCOME BY AS MUCH AS 50 BILLION PESETAS A YEAR THEY SAY THE COMPANY WILL MAKE UP FOR ALL BUT 10 BILLION PESETAS OF THE DIFFERENCE THIS YEAR WITH INCREASED REVENUE FROM ITS UNITS AND NEWLY ACQUIRED ASSETS THE LOST INCOME IS EQUIVALENT TO 5 OR LESS OF CONSOLIDATED PROFIT UNDER THE GOVERNMENTSPONSORED ASSET SWAP ENDESA WHICH HAS 40 OF THE SPANISH MARKET IS EXPECTED TO ACQUIRE ASSETS VALUED AT 104 BILLION PESETAS FROM IBERDROLA UNION ELECTRICA FENOSA AND CIA SEVILLANA DE ELECTRICIDAD SA MADRID BROKERAGE FIRM BENITO & MONJARDIN SVB EXPECTS ENDESA TO REPORT AN 8 INCREASE IN 1993 PROFIT AND A RISE IN ITS DIVIDEND IBERDROLA STANDS TO EARN AS MUCH AS 75 BILLION PESETAS FROM THE SALE OF ITS ASSETS TO ENDESA ACCORDING TO BROKERAGE CONCERN AHORRO CORP MOST OF THESE FUNDS WILL BE USED TO RETIRE A PORTION OF ITS 17 TRILLION PESETAS OF DEBT ALTHOUGH THE COMPANY'S TOTAL INCOME WILL FALL WITH THE SALE OF ITS PRODUCTION ASSETS ANALYSTS ARE WAGERING THAT IN THE LONG TERM THE FALL IN DEBTFINANCING COSTS WILL OFFSET THE LOSS OF REVENUE SIMILARLY IBERDROLA IS EXPECTED TO BE COMPENSATED FOR ITS 210 BILLION PESETAS OF AQUISITIONS IN THAT SWAP THE GOVERNMENT DETERMINES THE RETURN COMPANIES RECEIVE ON ASSETS TO HELP THE COMPANIES RECOVER INVESTMENTS IN PRODUCTION FACILITIES THIS FIGURE IS USED TO SET ELECTRICITY TARIFFS ACCORDING TO THE BROKERAGE COMPANY CENTRAL HISPANO DE BOLSA SVB IBERDROLA'S GOVERNMENT MARKUP COULD INCREASE THE COMPANY'S ANNUAL INCOME BY 25 BILLION PESETAS IBERDROLA ALSO STANDS TO GAIN FROM MOVES TO SOFTEN THE IMPACT OF THE DROUGHT ON THE COMPANIES' PROFITS WHICH ENTAIL REDUCING THE AVERAGEYEAR RAINFALL ESTIMATE USED AS A BENCHMARK FOR SETTING ELECTRICITY TARIFFS NONETHELESS THE COMPANY IS LIKELY TO POST FLAT PROFIT IN 1993 AND HAS ANNOUNCED IT WILL FREEZE ITS DIVIDEND BECAUSE IBERDROLA'S SHARE PRICE HAS RISEN STEADILY OVER THE PAST FOUR MONTHS SOME ANALYSTS WORRY THAT THE MARKET MAY HAVE DISCOUNTED THE AFFECTS OF THE NEW PLAN ON ITS FINANCES IBERDROLA'S PRICE HAS INCREASED OVER THE PAST FEW MONTHS BUT I STILL THINK WE CAN EXPECT A FEW MORE MONTHS OF RISES AS THE CHANGES IN THE PRICING SYSTEM BECOME KNOWN PREDICTS JOSE SEVILLA CHIEF ANALYST AT FG INVERSIONES BURSATILES SVB IN MADRID ANALYSTS ALSO ARE BETTING THAT THE NEW LAW ON THE REORGANIZATION OF THE SECTOR THAT IS SCHEDULED TO GO TO PARLIAMENT EARLY NEXT YEAR WILL ENABLE COMPANIES TO CLEAR THEIR BOOKS OF NONPERFORMING ASSETS PRIMARILY NUCLEAR FACILITIES THAT ARE PARALYZED UNDER SPAIN'S 10YEAROLD NUCLEAR MORATORIUM IF THAT PROVES TRUE IBERDROLA AND SEVILLANA STAND TO GAIN THE HEAVILY LEVERAGED FENOSA IS SET TO EARN SOME 100 BILLION PESETAS FROM THE SALE OF ASSETS TO ENDESA HIDROELECTRICA DE CANTABRICO SA AND TO A LESSER EXTENT IBERDROLA THE GOVERNMENT ALSO IS EXPECTED TO RAISE THE RETURN ON FENOSA'S ASSETS WHICH WILL BOOST INCOME BY AN ESTIMATED THREE BILLION PESETAS A YEAR ACCORDING TO CENTRAL HISPANO DE BOLSA UNDER THE CHANGES FENOSA WHICH HAS 36 OF ITS DEBT IN FOREIGN CURRENCY NO LONGER WILL BE REQUIRED TO PROVIDE AS HEAVILY FOR FOREIGNEXCHANGE LOSSES MOST ANALYSTS SUGGEST HOLDING RATHER THAN ACQUIRING FENOSA STOCK THE COMPANY IS EXPECTED TO HAVE A SMALL DROP IN PROFIT THIS YEAR AND LIKELY WILL BE REQUIRED TO REPEAT ITS DIVIDEND CONSIDERED A SOLID LONGTERM INVESTMENT BY SOME ANALYSTS HIDROCANTABRICO IS EXPECTED TO POST AN INCREASE IN PROFIT OF ABOUT 8 ENABLING IT TO RAISE ITS DIVIDEND AS A PARTICIPANT IN THE 1985 ASSET SWAP HIDROCANTABRICO ALSO IS EXPECTED TO EARN AN ADDITIONAL FOUR BILLION PESETAS FROM THE PROJECTED MARKUP ON THE VALUE OF ITS ASSETS AS PART OF THE ASSET EXCHANGE HIDROCANTABRICO IS TO AQUIRE NEW PRODUCTION FACILITIES FOR AN ESTIMATED 60 BILLION PESETAS SEVILLANA 34 OWNED BY ENDESA IS EXPECTED TO SELL ASSETS VALUED AT THREE BILLION PESETAS DURING THE NEW ASSET SWAP IT ALSO IS EXPECTED TO RECEIVE A MARKUP ON THE VALUE OF ITS ASSETS WHICH COULD REAP TWO BILLION PESETAS A YEAR PROFIT HOWEVER IS EXPECTED TO FALL SLIGHTLY IN 1993 LASTLY FUERZAS ELECTRICAS DE CATALUNA SA OR FECSA HAS BEEN HIT HARD THIS YEAR BY THE FALL IN DEMAND AND THE LACK OF RAIN THE PROSPECT OF A SHARP DROP OF MORE THAN 30 IN PROFIT THIS YEAR FROM A YEAR EARLIER HAS DAMPED ITS SHARE PRICE AND KEPT IT UNDERVALUED ALTHOUGH FECSA ISN'T EXPECTED TO PARTICIPATE IN THE NEW SHARE SWAP INES SERRANO AN ANALYST AT BENITO & MONJARDIN RECOMMENDS THE COMPANY BECAUSE OF ITS PLANS TO PREPAY AN ISSUE OF 63 BILLION PESETAS OF FIXEDINTEREST BONDS IN JANUARY WHICH WILL SLASH ITS FINANCIAL COSTS 9312170098 931217 FOREIGN EXCHANGE SURGE IN GERMAN MONEYSUPPLY GROWTH KNOCKS DOLLAR LOWER AGAINST THE MARK BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE BUNDESBANK RULED ANOTHER SESSION OF CURRENCY TRADING YESTERDAY KNOCKING THE DOLLAR LOWER AGAINST THE MARK WITH ITS PRONOUNCEMENTS THE DOLLAR ALSO SLIPPED AGAINST THE YEN AS TRADERS PICKED OUT NEWS OF ANOTHER WIDENING OF THE US TRADE DEFICIT WITH JAPAN FROM A GENERALLY POSITIVE REPORT ON US TRADE LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17093 MARKS DOWN FROM 17170 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10955 YEN DOWN FROM 10985 YEN STERLING WAS TRADING AT 14875 UP FROM 14792 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10975 YEN AND AT 17085 MARKS WITH TRADING ALREADY SLOWING TO A CRAWL AHEAD OF THE YEAREND HOLIDAYS DEALERS SPENT THE EARLY PART OF THE GLOBAL DAY WAITING TO SEE IF THE GERMAN CENTRAL BANK WOULD BESTOW THE GIFT OF LOWER INTEREST RATES TO A NEWSSTARVED MARKET THAT DECISION WAS EXPECTED TO COME AT AN AFTERNOON NEWS CONFERENCE IN FRANKFURT BUT WHEN THE BUNDESBANK SURPRISED MIDMORNING EUROPEAN MARKETS BY ANNOUNCING A SHARP RISE IN NOVEMBER MONEYSUPPLY GROWTH TRADERS DECIDED THERE WASN'T ANY HOPE FOR A RATE CUT AND RUSHED IN TO DUMP THE DOLLAR THAT KNOCKED THE DOLLAR ABOUT HALF A PFENNIG LOWER TO AROUND 17125 MARKS IN JUST A FEW MINUTES AND THE US CURRENCY CONTINUED TO SLIP BACK AFTER THE BUNDESBANK CONFIRMED LATER THAT THERE WOULDN'T BE ANY CUT IN RATES UNTIL BUYING INTEREST RETURNED AT 17075 MARKS TO PROP UP THE DOLLAR FOR THE REST OF THE DAY PEOPLE HAD GOTTEN A LITTLE BIT EXULTANT ABOUT THE POSSIBILITY OF A RATE CUT SAID SUSAN STEARNS A VICE PRESIDENT AT HARRIS TRUST & SAVINGS BANK IN NEW YORK THE LACK OF A CUT CAUSED SOME OF THE INTERBANK PLAYERS TO PARE THEIR LONGDOLLAR POSITIONS SHE ADDED GERMANY'S M3 MONEY SUPPLY EXPANDED AT AN ANNUAL RATE OF 72 IN NOVEMBER FASTER THAN OCTOBER'S RATE OF 69 AND WELL OUTSIDE THE BUNDESBANK'S TARGET RANGE OF 45 TO 65 FOR THE YEAR THE M3 GAUGE INCLUDES CASH IN CIRCULATION SIGHT DEPOSITS TIME ACCOUNTS AND MOST SAVINGS ACCOUNTS THE BUNDESBANK USES THE FIGURE AS ITS BEST INDICATOR OF FUTURE INFLATION PRESSURES THREATENING THE ECONOMY ALSO KICKING THE DOLLAR LOWER TRADERS NOTED WAS THE BUNDESBANK'S ANNOUNCEMENT THAT IT WILL LOWER ITS M3 TARGET RANGE TO 4 TO 6 FOR NEXT YEAR THE LOWER RANGE WILL BE EVEN MORE DIFFICULT FOR THE BUNDESBANK TO MEET TRADERS SAID AND COULD BE SOMETHING OF A STUMBLING BLOCK IN THE PATH OF FURTHER INTEREST RATE CUTS THE MARKET WAS A BIT SURPRISED BY SOME OF THE MONETARY TARGETS FOR NEXT YEAR SAID JOHN MCCARTHY MANAGER OF FOREIGN EXCHANGE AT ING CAPITAL MARKETS INC IN NEW YORK AGAINST THE YEN MEANWHILE THE DOLLAR WEAKENED ON NEWS OF THE WIDEST US TRADE DEFICIT WITH JAPAN SINCE NOVEMBER 1986 THE GAP WAS REPORTED AT 609 BILLION IN OCTOBER COMPARED WITH 533 BILLION IN SEPTEMBER ANALYSTS SAID THAT WHILE THE DOLLAR SUFFERED FROM THE TRADE NEWS THE OVERALL TRADE REPORT LARGELY UNDERSCORED THE GROWING STRENGTH OF THE US ECONOMY PARTICULARLY IN RELATION TO ITS MAJOR TRADING PARTNERS 9312170097 931217 ABREAST OF THE MARKET STOCKS REBOUND AIDED BY GAINS IN BOEING 3M AND ECONOMIC NEWS BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE REBOUNDED AFTER A TWODAY SELLOFF THE INDEX OF 30 BLUE CHIP STOCKS CLIMBED 922 POINTS TO 372614 GAINS IN BOEING UP 1 TO 43 3/4 AND MINNESOTA MINING & MANUFACTURING UP 1 1/4 TO 113 HELPED POWER THE MOVE UP FOR THE DOW INDUSTRIALS STANDARD & POOR'S 500STOCK INDEX RALLIED 150 TO 46334 AND THE NASDAQ COMPOSITE INDEX JUMPED 256 TO 75553 VOLUME ON THE NEW YORK STOCK EXCHANGE DROPPED TO 2837 MILLION SHARES FROM 3076 MILLION SHARES WEDNESDAY ADVANCING ISSUES LED DECLINERS FOR THE FIRST TIME SINCE DEC 8 BY 1143 TO 952 ANALYSTS SAID A DOSE OF STRONG ECONOMIC NEWS PUSHED STOCK PRICES HIGHER THE LABOR DEPARTMENT REPORTED THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE SLIPPED 7000 LAST WEEK TO 330000 SEPARATELY THE FEDERAL RESERVE BANK OF PHILADELPHIA SAID ITS INDEX OF GENERAL BUSINESS ACTIVITY INCREASED TO 424 THIS MONTH FROM 224 IN NOVEMBER THE INDEX HAS REGISTERED LARGE GAINS OVER THE PAST THREE MONTHS AND IS NOW NEAR ITS HIGHEST LEVEL IN THE SURVEY'S 25YEAR HISTORY WE HAVE A VERY GOOD ECONOMY SAID STEFAN ABRAMS DIRECTOR OF EQUITY STRATEGY AT TRUST CO OF THE WEST IN LOS ANGELES EVEN CALIFORNIA FEELS A LITTLE BETTER MR ABRAMS SAID THE MARKET IS POISED FOR A YEAREND RALLY ESPECIALLY SINCE DEMAND FOR STOCKS REMAINS STRONG WHILE THE SUPPLY OF EQUITIES IS EASING THE PILE OF NEW OFFERINGS HAS DWINDLED TO ONE ON THE DESK OF OUR TRADING DEPARTMENT HE SAID THERE'S NOT MUCH IN THE PIPELINE BETWEEN NOW AND YEAREND AND THAT'S A GOOD SIGN FOR THE MARKET THOUGH STOCKS MARKET INDEXES WERE GENERALLY HIGHER ONE SPECIALIZED STOCK MARKET INDEX THE DOW JONES TRANSPORTATION AVERAGE RETREATED DIVING 1394 POINTS TO 175052 DEPRESSING THE INDEX WAS SHARP LOSSES IN UAL THE PARENT OF UNITED AIRLINES UAL TUMBLED 4 3/8 TO 144 1/4 AFTER REPORTS THAT THE AIRLINE AND ITS TWO BIGGEST UNIONS HAVE NEGOTIATED A SWEETENED OFFER VALUED AT MORE THAN 170 A SHARE FOR THE LABOR GROUPS TO ACQUIRE A MAJORITY STAKE IN THE COMPANY FRUIT OF THE LOOM FELL 3 3/8 OR 121 TO 24 1/2 AFTER THE COMPANY SAID FOURTHQUARTER SALES WOULD FALL BELOW THE 447 MILLION MARK REACHED IN THE YEAREARLIER PERIOD THE COMPANY SAID LOWERTHANEXPECTED SALES AND HIGHER OPERATING COSTS RESULTING PRIMARILY FROM LOWER PLANT UTILIZATION WILL RESULT IN OPERATING EARNINGS FOR THE FOURTHQUARTER AND THE FULL FISCAL 1993 YEAR BEING LOWER THAN THE CURRENT RANGE OF ANALYSTS' ESTIMATES FLEMING WAS DOWN 3 1/2 OR 116 AT 26 3/4 FOLLOWING NEWS THAT THE COMPANY SAID IT EXPECTS FOURTHQUARTER RESULTS BEFORE EXTRAORDINARY CHARGES WILL BE 40 CENTS TO 45 CENTS WHICH WOULD BE BELOW EXPECTATIONS THE COMPANY SAID THAT IN ADDITION TO SALES REMAINING WEAK THE FOURTH QUARTER WILL BE HURT BY AN INCREASE IN ITS CREDITLOSS PROVISION FLEMING ALSO WILL TAKE AN EXTRAORDINARY CHARGE OF SEVEN CENTS A SHARE FOR THE EARLY REDEMPTION OF DEBT WHICH WILL IMPROVE EARNINGS IN FUTURE YEARS BY AT LEAST THREE CENTS THE COMPANY SAID WRITEDOWNS AND RESTRUCTURING NEXT YEAR ARE POSSIBLE AND THAT IT DOESN'T EXPECT TO SEE AN EARNINGS IMPROVEMENT IN 1994 A NUMBER OF BANK STOCKS RALLIED JP MORGAN ROSE 1 1/4 TO 71 5/8 CITICORP 1 TO 35 3/4 BANKAMERICA 1 1/2 TO 46 1/2 AND WELLS FARGO 2 1/4 TO 124 1/2 ANALYSTS SAID INSTITUTIONAL INVESTORS WERE DEPLOYING CASH IN THE GROUP AFTER A RECENT SELLOFF HAD SENT PRICES SHARPLY LOWER EASTMAN KODAK CONTINUED TO SLIDE LOSING 1 1/4 TO 54 1/4 THE ROCHESTER NY PHOTOGRAPHICSUPPLY COMPANY'S STOCK TUMBLED 7 1/4 OR 12 YESTERDAY AFTER IT PREDICTED LOWERTHANEXPECTED EARNINGS FOR 1994 INTERNATIONAL BUSINESS MACHINES JUMPED 5/8 TO 57 1/2 MERRILL LYNCH & CO LIFTED ITS ESTIMATE OF THE ARMONK NY COMPUTER MAKER'S 1993 EARNINGS TO A PROFIT OF FIVE CENTS A SHARE IT HAD PREDICTED A LOSS OF 25 CENTS THE STOCK HAS RALLIED SMARTLY THIS MONTH NEXTEL COMMUNICATIONS RALLIED 3 TO 36 1/2 ON NASDAQ THE RUTHERFORD NJ WIRELESS COMMUNICATIONS COMPANY'S CHIEF EXECUTIVE BRIAN D MCAULEY SAID THE COMPANY IS MAKING FAVORABLE PROGRESS IN CONSTRUCTING A DIGITAL COMMUNICATIONS NETWORK IN THE LOS ANGELES AREA SERVICE MERCHANDISE ROSE 1/4 OR 25 TO 10 1/4 AFTER RAYMOND JAMES & ASSOCIATES RAISED ITS INVESTMENT RATING ON THE COMPANY TO BUY FROM HOLD MOORCO INTERNATIONAL WAS UP 1 3/8 OR 83 TO 18 AFTER THE COMPANY LATE WEDNESDAY REPORTED SECONDQUARTER EARNINGS OF 31 CENTS A SHARE WHICH COMPARES WITH YEARAGO EARNINGS OF 30 CENTS AND EXPECTED EARNINGS OF 28 CENTS TIMBERLAND FELL 10 1/4 OR 165 TO 52 AFTER MONTGOMERY SECURITIES LOWERED ITS FOURTHQUARTER EARNINGS ESTIMATE TO 67 CENTS A SHARE FROM 72 CENTS IN THE YEARAGO PERIOD TIMBERLAND EARNED 44 CENTS A SHARE THE STOCK WHICH IS UP GREATLY FROM MIDYEAR ON HIGHER EARNINGS EXPECTATIONS FELL 6 1/2 OR 95 WEDNESDAY CITIZENS UTILITIES FELL 1 5/8 OR 83 TO 17 5/8 AFTER THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM SAID THE PENSION SYSTEM WILL SEEK TO PARTICIPATE IN LITIGATION AGAINST THE COMPANY'S CHIEF EXECUTIVE AND CHAIRMAN LEONARD TOW THE PENSION SYSTEM SAID IT WILL SEEK TO JOIN A SUIT FILED EARLIER THIS YEAR IN DELAWARE BY SEVERAL LARGE LONGTERM SHAREHOLDERS OF CITIZENS UTILITIES 9312170096 931217 OLIN CORP TO TAKE 132 MILLION CHARGE IN FOURTH QUARTER STAMFORD CONN OLIN CORP DISCLOSED THAT IT WILL TAKE A FOURTHQUARTER CHARGE OF 132 MILLION IN PART TO COVER EXPENSES ASSOCIATED WITH COSTCUTTING MOVES INCLUDED IN WHAT THE COMPANY CHARACTERIZED AS AN EFFORT TO POSITION OLIN FOR IMPROVED EARNINGS IS THE ELIMINATION OF 600 SALARIED JOBS OR 10 OF ITS SALARIED WORK FORCE ABOUT 100 JOBS IN THE COMPANY'S HOURLY WORK FORCE WILL ALSO BE CUT THE CHARGES SEEM CERTAIN TO GIVE OLIN A LOSS FOR BOTH THE QUARTER AND THE YEAR THROUGH THE FIRST NINE MONTHS OF 1993 THE COMPANY HAS REPORTED NET OF 31 MILLION OR 117 A SHARE ON SALES OF 182 BILLION OLIN HAS INTERESTS IN CHEMICALS MATERIALS AND METALS DEFENSE AND AEROSPACE AND SPORTING AMMUNITION THE WORKFORCE REDUCTIONS WILL REQUIRE A CHARGE OF ABOUT 26 MILLION ANOTHER 26 MILLION CHARGE WILL COVER A PLANNED STREAMLINING OF BUSINESSES THROUGH THE RELOCATION AND CONSOLIDATION OF SEVERAL FACILITIES THAT PORTION OF THE CHARGE WILL ALSO COVER LOWERTHANEXPECTED PROCEEDS FROM CERTAIN ASSET DISPOSALS AND HIGHERTHANANTICIPATED COSTS ASSOCIATED WITH AN EARLIER RESTRUCTURING EFFORT IN 1991 THAT PREVIOUS EFFORT CUT OLIN'S WORLDWIDE WORK FORCE BY 330 JOBS TO ABOUT 13000 IT ALSO INCLUDED SIGNIFICANT DIVESTITURES ALSO IN THE CHARGES IS AN AGGREGATE 80 MILLION LINKED TO SUCH THINGS AS SITE MAINTENANCE AT DISCONTINUED FACILITIES ENVIRONMENTAL REMEDIATION AND OTHER ISSUES OLIN DISCLOSED THE CHARGES AFTER THE MARKET'S CLOSE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE OLIN SHARES SLIPPED 50 CENTS TO 46625 9312170095 931217 POLITICS & POLICY FORMER CIA AIDE INMAN NOMINATED TO SUCCEED ASPIN AT PENTAGON SEEMS UNLIKELY CLINTON CHOICE BY THOMAS E RICKS AND KYLE POPE STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON BY PUSHING LES ASPIN OUT IN FAVOR OF RETIRED ADM BOBBY INMAN PRESIDENT CLINTON ALMOST CERTAINLY WILL GET A BETTERMANAGED PENTAGON BUT THE PRESIDENT HAS HARDLY PICKED SOMEONE WHO WILL HELP HIM ACCELERATE CUTS IN THE DEFENSE BUDGET OR END WHITE HOUSE FRICTION WITH THE ARMED SERVICES MR CLINTON YESTERDAY ANNOUNCED HIS INTENTION TO NOMINATE MR INMAN A FORMER DEPUTY DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY AS SECRETARY OF DEFENSE THE PRESIDENT GAVE LITTLE INDICATION OF WHAT HE EXPECTS FROM HIS NEXT DEFENSE SECRETARY WHO IS EXPECTED TO WIN SENATE APPROVAL EASILY MR ASPIN WHO STOOD BY MUTELY AS HIS SUCCESSOR WAS INTRODUCED AT A NEWS CONFERENCE HAD INCREASINGLY BEEN SEEN AS A BURDEN BY SENIOR WHITE HOUSE OFFICIALS ONE SAID MR ASPIN OFFERED TO RESIGN AFTER 18 ARMY RANGERS DIED IN A FIREFIGHT IN SOMALIA IN OCTOBER MR CLINTON DIDN'T INITIALLY ACCEPT THE RESIGNATION BUT ABOUT A MONTH AGO WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY BEGAN TO SEARCH FOR A NEW DEFENSE SECRETARY AS THE PRESIDENT AND MR ASPIN DISCUSSED WHETHER MR ASPIN WOULD LEAVE THE CHOICE ISN'T A LONGTIME POLITICAL CRONY STANDING BESIDE PRESIDENT CLINTON IN THE ROSE GARDEN MR INMAN STATED I VOTED FOR PRESIDENT BUSH WHOM HE TERMED A PERSONAL FRIEND MR INMAN ALSO PLAYED UP HIS BUSINESS SAVVY IN THESE LAST 10 YEARS I'VE LEARNED A LOT ABOUT HOW BUSINESS WORKS AND I WOULD HOPE TO SPEND A LOT OF MY TIME ON BRINGING BEST BUSINESS PRACTICES TO THE DEPARTMENT OF DEFENSE HE SAID BUT WHILE MR INMAN IS CONSIDERED A SHREWD WASHINGTON OPERATIVE HIS BUSINESS CAREER HAS BEEN TUMULTUOUS TRACOR INC A DEFENSE CONTRACTOR THAT MR INMAN HELPED TAKE PRIVATE IN 1987 FILED FOR FEDERAL BANKRUPTCYCOURT PROTECTION FOUR YEARS LATER IN 1989 WHEN HE RESIGNED AS CHAIRMAN OF WESTMARK SYSTEMS INC WHICH TOOK TRACOR PRIVATE MR INMAN SAID EVERYBODY UNDERSTOOD WHEN HE TOOK THE JOB THAT HE KNEW NOTHING ABOUT FINANCE I'D RATHER DEAL WITH CONGRESS ANY DAY HE SAID ULTIMATELY THE COMPANY BECAME A SYMBOL OF THE EXCESSES OF THE 1980SSTYLE LEVERAGED BUYOUT AND MR INMAN WAS CHIDED FOR SADDLING THE COMPANY WITH DEBT AT A TIME WHEN HE SHOULD HAVE KNOWN THAT ITS CORE BUSINESS WOULD BE SHRINKING THESE PEOPLE MIGHT NOT HAVE BEEN AS CAREFUL AS THEY SHOULD HAVE BEEN SAID MARTY BOLLINGER AN AEROSPACE CONSULTANT AT BOOZ ALLEN & HAMILTON INC IN NEW YORK FRANK MCBEE TRACOR'S FOUNDER YESTERDAY REMARKED THAT IT'S JUST AS WELL MR INMAN IS RETURNING TO GOVERNMENT FOLLOWING REVERSALS IN THE BUSINESS WORLD INMAN IS MOVING TO THE RIGHT PLACE A PLACE HE KNOWS HIS WAY AROUND HE SAID MR INMAN ALSO HAS SERVED AS A DIRECTOR OF DELL COMPUTER CORP A MAILORDER COMPUTER MAKER THAT HAS STUMBLED BADLY IN THE PAST YEAR AS CHAIRMAN OF THE DELL BOARD'S AUDIT COMMITTEE MR INMAN HAS FOUND HIMSELF IN THE THICK OF A CURRENCY SPECULATION SCANDAL THAT LED TO AN INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION MR INMAN RESIGNED FROM THE DELL BOARD YESTERDAY BECAUSE OF HIS NOMINATION SCANDAL ALSO BRUSHED MR INMAN WHEN HE WROTE TO A FEDERAL JUDGE IN 1992 ON BEHALF OF JAMES GUERIN A CONVICTED INTERNATIONAL FINANCIAL SWINDLER HE TOLD THE COURT THAT MR GUERIN HAD PATRIOTICALLY PASSED ON VALUABLE INFORMATION ABOUT FOREIGN NUCLEAR WEAPONS CAPABILITY MR INMAN WASN'T AVAILABLE FOR COMMENT ON THESE ISSUES PENDING SENATE HEARINGS ON HIS NOMINATION MR INMAN WHO WAS THE YOUNGEST THREESTAR ADMIRAL IN THE HISTORY OF THE PEACETIME NAVY ALMOST CERTAINLY WILL FIND IT EASIER TO TAKE THE HELM AT THE PENTAGON THAN DID THE RUMPLED ACADEMICALLY INCLINED LES ASPIN HE'S ONE OF THE SMARTEST PEOPLE I'VE EVER MET LAWRENCE KORB A REAGANERA PENTAGON OFFICIAL SAID OF MR INMAN HE'S ONE OF THE NEATEST TOO HE'LL MAKE THE TRAINS RUN ON TIME ADDS GEORGE CARVER A FORMER CIA OFFICIAL WHO HAS KNOWN MR INMAN SINCE THE 1960S INMAN IS VERY GOOD AT GETTING THINGS DONE HE MANAGED THE NATIONAL SECURITY AGENCY FROM 1977 TO 1981 VERY WELL AND THAT'S A VERY LARGE COMPLEX ORGANIZATION WITH A CULTURE ALL ITS OWN MR INMAN IS PROBABLY MORE FAMILIAR WITH MR ASPIN'S TEAM OF CIVILIAN MANAGERS THAN HE IS WITH TODAY'S UNIFORMED MILITARY BECAUSE MOST MILITARY PEOPLE EVEN GENERALS AND ADMIRALS RETIRE BY AGE 55 ONLY A HANDFUL OF ACTIVEDUTY OFFICERS KNOW MR INMAN WELL MR INMAN WHO IS 62 SERVED FROM 1989 TO 1991 AS COCHAIRMAN OF THE ASPEN STRATEGY GROUP A PRIVATE POLICY GROUP RUN BY THE ASPEN INSTITUTE WITH WILLIAM PERRY WHO IS NOW THE NO 2 OFFICIAL AT THE PENTAGON FROM THE ASPEN GROUP HE ALSO KNOWS JOHN DEUTCH THE PENTAGON'S ACQUISITION CHIEF AND WALTER SLOCOMBE ITS NO 2 POLICY OFFICIAL THOSE OFFICIALS ARE EXPECTED TO REMAIN BUT SEVERAL OTHERS SUCH AS GRAHAM ALLISON WHO HAS BEEN OVERSEEING THE PENTAGON'S RUSSIA POLICY AS WELL AS FRANK WISNER THE TOP POLICY OFFICIAL MAY LEAVE ALSO THE TROUBLED NOMINATION OF MORTON HALPERIN TO OVERSEE PEACEKEEPING EFFORTS MAY BE DEAD NOTWITHSTANDING HIS FAMILARITY WITH THE ASPIN CROWD MR INMAN'S VIEW OF THE WORLD IS PROBABLY CLOSER TO FORMER DEFENSE SECRETARY DICK CHENEY'S MR KORB AND OTHERS WHO HAVE DISCUSSED POLITICS WITH HIM AT THE ASPEN STRATEGY GROUP DESCRIBE HIM AS AN ADVOCATE OF A ROBUST NATIONAL DEFENSE WHO WORRIES ABOUT A RESURGENT RUSSIA AS WELL AS NEW DANGERS EMERGING WHILE BILL CLINTON WAS MARCHING AGAINST THE VIETNAM WAR MR INMAN WAS HELPING PROSECUTE IT AS HEAD OF INTELLIGENCE FOR THE NAVY'S PACIFIC FLEET MR INMAN HASN'T BEEN A CHEERLEADER FOR THE MILITARY ESTABLISHMENT HOWEVER DURING HIS TIME IN THE PRIVATE SECTOR MR INMAN WAS AN OUTSPOKEN CRITIC OF THE DEFENSE INDUSTRY CHARGING THAT IT LACKED FLEXIBILITY AND PRODUCED POOR WEAPONRY PARTLY BECAUSE IT WAS HAMPERED BY INANE PENTAGON REGULATIONS MR INMAN'S LONGHELD VIEWS ON THE NEED FOR A STRONG DEFENSE AND INTELLIGENCE ESTABLISHMENT ALONG WITH HIS PENCHANT FOR SPEAKING HIS MIND COULD PORTEND CLASHES WITH THE WHITE HOUSE IN THE FUTURE MR CARVER WHO WORKED WITH MR INMAN DURING THE VIETNAM ERA REPORTS THAT THE ADMIRAL DOESN'T SUFFER FOOLS GLADLY HE DOESN'T FLY OFF THE HANDLE BUT HE HAS A STRONG QUIET TEMPER SAYS THE FORMER INTELLIGENCE OFFICIAL HE'S A MAN OF PRINCIPLE AND HE DOESN'T BUDGE AN INCH IF HE THINKS PRINCIPLE IS INVOLVED FORMER DEFENSE SECRETARY CASPAR WEINBERGER THINKS MR CLINTON MAY SIMPLY HAVE PUT A NEW FACE ON OLD TROUBLE I THINK ASPIN'S PROBLEM AND IT COULD BE BOBBY INMAN'S PROBLEM WAS THAT THIS ADMINISTRATION DOESN'T UNDERSTAND THE MILITARY AND DOESN'T MUCH LIKE IT MR INMAN BECOMES PART OF A NATIONAL SECURITY TEAM THAT HASN'T MANAGED TO ARTICULATE A CLEAR VISION OF THE US ROLE IN THE WORLD FRIENDS OF THE PENTAGON NOMINEE THINK HE'LL HELP BRING CLARITY HE IS VERY GOOD AT IDENTIFYING AND SELLING THE VISION AND THE DEFENSE DEPARTMENT IS GOING THROUGH A PERIOD OF IDENTIFYING ITS GOALS IN THE POSTSOVIET ERA SAID CRAIG FIELDS A FORMER PENTAGON OFFICIAL WHO IS NOW CHAIRMAN AND CHIEF EXECUTIVE OF MICROELECTRONICS AND COMPUTER TECHNOLOGY CORP THE INFORMATIONTECHNOLOGY CONSORTIUM THAT MR INMAN RAN FROM 1983 THROUGH 1986 YET OTHERS PORTRAY MR INMAN MORE AS CONSUMMATE BUREAUCRAT THAN AN INNOVATIVE THINKER IN THE MODE OF COLIN POWELL THE RECENTLY RETIRED CHAIRMAN OF THE JOINT CHIEFS OF STAFF HIS BACKGROUND PARALLELS THE LATER DAYS OF POWELL'S CAREER NOTES RETIRED REAR ADM DAVID HARVEY WHO SUCCEEDED MR INMAN AS HEAD OF NAVAL INTELLIGENCE IN 1976 MR INMAN SEEMED TO CONFIRM THAT VIEW IN THE ROSE GARDEN YESTERDAY SAYING I AM AN OPERATOR HOPEFULLY WITH A STRATEGIC VIEW CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF WESTMARK SYSTEMS CLOSELY HELD ELECTRONICS HOLDING COMPANY 198689 MEMBER OF THE BOARD OF DELL COMPUTERS FLUOR CORP SCIENCE APPLICATIONS INTERNATIONAL SOUTHWESTERN BELL TEMPLE INLAND AND XEROX TRUSTEE OF SOUTHWESTERN UNIVERSITY AND THE INSTITUTE OF TECHNOLOGY AND A MEMBER OF THE CARNEGIE COMMISSION ON SCIENCE TECHNOLOGY AND GOVERNMENT 9312170094 931217 PEUGEOT CITROEN CHIEF SEES LOWER '94 SALES REVISING PROJECTIONS PARIS PSA PEUGEOT CITROEN SA CHAIRMAN JACQUES CALVET SAID THE COMPANY LOWERED ITS PROJECTION FOR FRENCH CAR SALES IN 1994 TO GROWTH OF 57 FROM THE 9 IT PROJECTED A MONTH AGO MR CALVET SAID THE REVISION REFLECTED WEAKER CAR SALES THAN THE GROUP HAD BEEN COUNTING ON AS WELL AS REDUCED ORDERS FOR THE EARLY MONTHS OF 1994 HE SAID THAT THE PACE OF NEW ORDERS FOR THE FRENCH MARKET IS RUNNING AT AN ANNUAL RATE OF ABOUT 17 MILLION VEHICLES COMPARED TO THE 1850000 THAT PEUGEOT ECONOMISTS HAD PROJECTED MR CALVET TOLD A NEWS CONFERENCE AT THE GROUP'S AUTOMOBILES CITROEN DIVISION THAT PEUGEOT EXPECTS EUROPEAN CAR SALES TO RISE BY JUST OVER 3 NEXT YEAR TO 118 MILLION VEHICLES BUT IF EXCEPTIONAL SALES REGISTERED IN DECEMBER 1992 WERE FACTORED OUT THE RISE WOULD BE 18 HE SAID REGARDING CITROEN'S PERFORMANCE IN 1993 CALVET SAID EUROPEAN SALES OF CARS ARE EXPECTED TO DECLINE 12 WHILE THE MARKET IS LIKELY TO DECLINE 15 OVERALL THIS YEAR THAT WILL MEAN AN INCREASE IN CITROEN'S EUROPEAN MARKET SHARE TO 38 FROM 367 IN 1992 MR CALVET ATTRIBUTED CITROEN'S COMPARATIVELY GOOD PERFORMANCE TO THE LAUNCH OF ITS HIGHLY SUCCESSFUL XANTIA MODEL AND ITS STRONG MARKETING CAMPAIGN 9312170093 931217 TECHNOLOGY COMPAQ TO DROP LASER PRINTERS CITING PC PRIORITY BY ARTHUR BUCKLER STAFF REPORTER OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP IS ABANDONING ITS 1 1/2YEAROLD LASERPRINTER BUSINESS SAYING THE INVESTMENT NEEDED TO BE A SUCCESS IN THAT FIELD COULD BE BETTER USED IN THE COMPANY'S PERSONALCOMPUTER BUSINESS THE COMPANY WHICH ENTERED THE PRINTER MARKET IN AUGUST 1992 WITH TWO FAVORABLY RECEIVED MODELS DESIGNED TO BE USED ON NETWORKS OF PCS ESTIMATES THAT IT HAS A 15 SHARE OF THAT MARKET NICHE THOUGH THE HOUSTONBASED COMPANY'S PRINTER SALES TRAIL BY FAR THOSE OF MARKET LEADER HEWLETTPACKARD CO THERE ARE OTHER VENDORS WHO WOULD KILL FOR THAT KIND OF MARKET SHARE SAID ANGELE BOYD AN ANALYST WHO FOLLOWS THE PRINTER INDUSTRY FOR INTERNATIONAL DATA CORP BUT COMPAQ DECIDED THAT THE MARKET NICHE IT IS IN PRINTERS THAT SPIT OUT BETWEEN 12 AND 20 PAGES A MINUTE WAS TOO NARROW TO BE WORTH THE TECHNOLOGICAL INVESTMENT REQUIRED THE COMPANY SOLD ROUGHLY 120 MILLION IN PRINTERS A YEAR MS BOYD ESTIMATED MAKING THE DIVISION A SMALL PART OF ITS 7 BILLION IN REVENUE THE COMPANY CONSIDERED EXPANDING DOWNWARD INTO THE MARKET FOR PRINTERS AIMED AT CONSUMERS BUT THE PROFIT MARGINS IN THAT COMPETITIVE SEGMENT AREN'T BIG ENOUGH TO BE ATTRACTIVE RICHARD ZWETCHKENBAUM AN INTERNATIONAL DATA ANALYST WHO FOLLOWS COMPAQ SAID THE DECISION MADE SENSE YOU'RE BETTER OFF FOCUSING ON THE COMPUTER SYSTEMS THEMSELVES HE SAID ALTHOUGH COMPAQ HAS TURNED ITSELF AROUND IN THE PC MARKET REPORTING STRONG SALES OF ITS PRESARIO LINE IT NEEDS TO COME OUT WITH NEW MODELS EVERY SIX TO NINE MONTHS JUST TO KEEP PACE IN THE CUTTHROAT BUSINESS MR ZWETCHKENBAUM SAID IN ADDITION COMPAQ IS HUNGRILY HOPING TO EXPAND IN THE MOREPROFITABLE MARKET FOR SERVERS WHICH ARE HIGHCAPACITY SIBLINGS OF PERSONAL COMPUTERS AND ARE USED TO RUN NETWORKS OF PCS OR CLIENTS WE BELIEVE IN THE NEXT DECADE THAT THE CLIENTSERVER MODEL WILL BE THE COMPUTING MODEL OF CHOICE IN THE CORPORATE WORLD SAID DARYL WHITE COMPAQ'S CHIEF FINANCIAL OFFICER ANOTHER AREA WHERE THE COMPANY MAY LOOK TO INVEST MR WHITE SAID IS THE EMBRYONIC MARKET WHERE COMPUTING AND COMMUNICATIONS CONVERGE AS IN HANDHELD COMPUTERS THAT CAN SEND AND RECEIVE MESSAGES AND FAXES THE COMPANY SAID IT WILL STOP DEVELOPING PRINTERS IMMEDIATELY AND STOP SELLING THEM DURING THE FIRST HALF OF NEXT YEAR MR WHITE SAID HE EXPECTS MOST OF THE PRINTER DIVISION'S EMPLOYEES TO BE TRANSFERRED TO OTHER PARTS OF THE COMPANY HE WOULDN'T SAY HOW MANY PEOPLE THE DIVISION EMPLOYS THE COSTS OF WITHDRAWING FROM THE PRINTER BUSINESS AREN'T EXPECTED TO BE MATERIAL MR WHITE SAID ADDING THAT THE MOVE PROBABLY WILL HELP 1994'S OPERATING RESULTS BY ALLOWING EXPANSION IN OTHER AREAS COMPAQ SHARES CLOSED YESTERDAY AT 74125 UP 1875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9312170092 931217 NEW ZEALAND SELLS 65 STAKE IN FLETCHER FOR 2342 MILLION SPECIAL TO THE WALL STREET JOURNAL WELLINGTON NEW ZEALAND THE NEW ZEALAND GOVERNMENT SAID IT SOLD ITS 65 STAKE IN FORESTRY AND RESOURCES CONCERN FLETCHER CHALLENGE LTD FOR 418 MILLION NEW ZEALAND DOLLARS US2342 MILLION MINISTER OF FINANCE BILL BIRCH SAID PROCEEDS FROM THE SALE WILL BE USED TO REPAY DEBT NEW ZEALAND'S TREASURY DEPARTMENT SAID THE GOVERNMENT HAS SOLD 104 MILLION ORDINARY OR COMMON SHARES IN FLETCHER AND 26 MILLION FOREST DIVISION SHARES THE SALE WAS TO A NUMBER OF INSTITUTIONAL INVESTORS IN VARIOUS PARTS OF THE WORLD WITH THE TRANSACTION CONDUCTED BY CS FIRST BOSTON LTD THE GOVERNMENT WAS FORCED TO PURCHASE 104 MILLION SHARES IN FLETCHER AT NZ383 US215 EACH IN MARCH 1992 THE PURCHASE WAS FORCED UNDER AN OPTION GRANTED WHEN THE GOVERNMENT SOLD OIL EXPLORATION AND PRODUCTION GROUP PETROCORP LTD TO FLETCHER IN 1988 SINCE 1992 FLETCHER SHARES HAVE BEEN SPLIT INTO ORDINARY OR COMMON SHARES AND FOREST DIVISION SHARES WITH THE FOREST UNITS REPRESENTING HALF OF THE GROUP'S ASSETS IN NEW ZEALAND AND CHILE THE GOVERNMENT SAID THAT INCLUDING ITS HOLDING COSTS IT HAS BROKEN EVEN ON THE TRANSACTION MINISTER OF FINANCE BIRCH SAID THE SALE OF THE SHARES IS MARVELOUS NEWS AS IT ALLOWS THE GOVERNMENT TO REPAY A LARGE SLICE OF DEBT MR BIRCH SAID FOREIGNCURRENCYDENOMINATED DEBT WILL BE REPAID RATHER THAN NEW ZEALAND DOLLAR DEBT 9312170091 931217 HEARD ON THE STREET BEAR OF BOCA' SEES STOCK MARKET SLIDE BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL IN THE BROKERAGE INDUSTRY BOCA RATON FLA IS KNOWN AS A HOME FOR HIGHPRESSURE STOCKBROKERS WHO NEVER MET A STOCK THEY DIDN'T LIKE WHICH IS WHY DOUGLAS A KASS STICKS OUT HE'S THE BEAR OF BOCA AS RESEARCH DIRECTOR OF BOCABASED JW CHARLES/CSG OWNED BY CORPORATE MANAGEMENT GROUP HE IS ONE OF THE FEW PEOPLE IN HIS POSITION WHO PREFERS SHORTSELLERS OVER THE MARKET'S BULLS HE CLAIMS PROUDLY THAT HIS RESEARCH OPERATION IS THE ONLY ONE ON OR OFF WALL STREET WITH MORE SELL RECOMMENDATIONS THAN BUYS RIGHT NOW HE DISLIKES HOLD RATINGS THAT'S FOR WALL STREET WIMPS HE SAYS MR KASS'S POTSHOTS HAVE ALREADY GOTTEN HIM IN HOT WATER WITH MERRILL LYNCH THE NATION'S BIGGEST BROKERAGE FIRM WHICH DISPUTES THE BASIS FOR A SELL RECOMMENDATION ON MERRILL PUT OUT BY ONE OF MR KASS'S ANALYSTS NANCY ZAMBELL BUT THEN HIS FIRM ALSO RECOMMENDS SELLING IN ALPHABETICAL ORDER ALEX BROWN BEAR STEARNS AG EDWARDS INTERREGIONAL FINANCIAL AND ON AND ON BASICALLY THE US BROKERAGE INDUSTRY ALAN ACE GREENBERG CHAIRMAN OF BEAR STEARNS DOESN'T THINK MUCH OF MR KASS'S SELL RECOMMENDATION EITHER IT'S A FREE COUNTRY HE SAYS DISMISSIVELY ADDING PEOPLE HAVE BEEN RECOMMENDING SELLING BROKERAGE STOCKS FOR 2 1/2 YEARS WHAT DO WE CARE WE BUY OUR STOCK EVERY DAY IF IT GOES DOWN WE'LL JUST BUY MORE WITH THE STOCK MARKET LOOKING VULNERABLE AFTER SEVERAL BURSTS INTO RECORD TERRITORY THE 44YEAROLD MR KASS IS GETTING MORE ATTENTION FOR HIS SKEPTICAL APPROACH AND FOR HIS BLUNT COLORFULLY WRITTEN MARKET COMMENTARIES THE FORMER FIRST ALBANY CORP RESEARCH CHIEF AND RALPH NADER ACTIVIST CALLS MOST WALL STREET RESEARCH BORING HE'S FOND OF SAYING HE'D RATHER QUOTE SINGER JIMMY BUFFETT THAN INVESTOR WARREN BUFFETT MR KASS WAS ONE OF THE FIRST PEOPLE TO GIVE THE PHRASE SNAPPLESQUE WIDE USE TO DESCRIBE SOME OF THE PAST YEAR'S STUNNINGLY HIGHPRICED NEW ISSUES SUCH AS THE PHRASE'S NAMESAKE SNAPPLE BEVERAGE SNAPPLE REMAINS ON HIS SELL LIST AND HE RIBS THE STOCK RELENTLESSLY THERE IS JUST AN OVERRIDING TENDENCY TO BE BULLISH ON WALL STREET AND THE REASONS ARE PRETTY OBVIOUS HE SAYS WE'RE OBVIOUSLY GOING AGAINST TYPE SINCE JOINING JW CHARLES/CSG IN MAY MR KASS HAS SOUNDED THE ALARM THAT THE STOCK MARKET IS OVERVALUED AFTER ITS LONG BULL RUN HE SAYS HE HAS GROWN EVEN MORE BEARISH IN THE PAST MONTH BECAUSE HE IS INCREASINGLY CONCERNED THE ICE IS GETTING THINNER HE ANTICIPATES A 200POINT DECLINE IN THE DOW JONES INDUSTRIAL AVERAGE IN COMING MONTHS FOLLOWED BY SEVERAL YEARS OF A BEAR MARKET SOMETHING SIMILAR BUT NOT AS SEVERE AS THE 19731974 WATER TORTURE MR KASS'S REASONS FOR FEARING THAT THE MARKET IS AT A CLASSICAL TOP INCLUDE WEAKNESS IN UTILITIES STOCKS A PATHETIC LOW NUMBER OF NEW HIGHS BEING HIT BY NEW YORK STOCK EXCHANGE STOCKS EACH DAY AND THE POPULARITY OF SUCH TRENDY STOCKS AS STARBUCKS AND PRESIDENT RIVERBOAT CASINOS HE HAS SELLS ON BOTH OF THEM OF COURSE MR KASS SAYS HE VOTED FOR PRESIDENT CLINTON BUT MR CLINTON IS MORE PROGOVERNMENT ACTIVIST THAN THE POPULACE BARGAINED FOR MAKING INFLATION A BIGGER THREAT THAN REALIZED THE ROSE GARDEN IS GETTING THORNY HE LAMENTS MR KASS HAS MADE SOME GOOD CALLS HE WAS QUOTED IN JULY 1986 AS RECOMMENDING BETTING AGAINST HOME SHOPPING NETWORK A THENHOT NEW ISSUE BROUGHT OUT BY MERRILL LYNCH THE STOCK PLUNGED 72 IN THE NEXT YEAR HE SAYS IT WAS HIS BEST SHORT CALL SHORTSELLERS BET AGAINST STOCKS BY SELLING BORROWED SHARES HOPING TO REPLACE THEM LATER AT CHEAPER PRICES AMONG NEW ISSUES ON WHICH MR KASS IS BEARISH NOW ARE LONE STAR STEAKHOUSE & SALOON AND OUTBACK STEAKHOUSE BOTH OFTEN NAMED BY THE MARKET'S SKEPTICS YET MR KASS HAS BUY RECOMMENDATIONS TOO ABOUT 40 OF HIS FIRM'S STRONG BUYS ARE GOLD AND SILVER STOCKS WHICH PLAY INTO MR KASS'S HIGHINFLATION SCENARIO ACTUALLY HE HAS POUNDED THE TABLE ON GOLD SINCE JUNE 1992 AND WAS ABOUT A YEAR TOO EARLY HIS CURRENT PICKS INCLUDE BATTLE MOUNTAIN GOLD HECLA MINING AND NEWMONT MINING AND DESPITE THE SELL RECOMMENDATION ON PRESIDENT RIVERBOAT MR KASS RECOMMENDS BUYING CASINO AMERICA AND GRAND CASINOS BECAUSE THEIR SHARE PRICES HAVE BEEN BEATEN DOWN HE ALSO LIKES ONEIDA A MARVELOUS FRANCHISE IN STAINLESS STEEL AND SILVERPLATE FLATWARE WITH ALMOST NO ANALYST COVERAGE AND ST JOE PAPER WHICH HE RECOMMENDED LAST YEAR AT 35 AND IS NOW AT 51 3/8 HE BASES HIS CALL ON HOPES THE COMPANY WILL BE SOLD WITH ALL THE POPCULTURE REFERENCES MR KASS MAKES IN HIS MARKET COMMENTARIESEQUITIES KEEP ON MAKING BETTER COMEBACKS THAN THE JUDDS HE WROTE IN AUGUST HE WORRIES THAT INVESTORS DON'T TAKE HIM SERIOUSLY ENOUGH INDEED HE CAN GET TOO CUTESY IN EARLY SEPTEMBER HE RAN A CHART COMPARING THE DOW INDUSTRIALS WITH THE BATTING AVERAGE OF THE COLORODO ROCKIES' ANDRES GALARRAGA HIS POINT MR GALARRAGA'S ABNORMALLY HIGH AVERAGE WAS FALLING AND BASEBALL AVERAGES AND STOCK MARKET RETURNS TEND TO REGRESS TO THEIR MEAN AFTER THE REPORT CAME OUT MR GALARRAGA WENT ON TO LEAD THE LEAGUE IN HITTING AND THE INDUSTRIAL AVERAGE HIT SEVERAL RECORDS STILL MR KASS'S STYLE HAS SERVED HIM WELL SO FAR ONE OF HIS APPEARANCES IN BARRON'S WEEKLY A SISTER PUBLICATION OF THIS NEWSPAPER GOT HIM HIS CURRENT JOB AT JW CHARLES/CSG AFTER THE FIRM'S CHAIRMAN SAW HIM ON THE COVER AND LIKED HIS FLAIR AFTER HIS STINT WITH FIRST ALBANY IN UPSTATE NEW YORK MR KASS DIDN'T MIND SETTING UP SHOP IN FLORIDA BOCA IS FAR EASIER TO TAKE THAN ALBANY HE SAYS THERE IS ONE POTENTIAL DANGER ON THE HORIZON FOR CORPORATE MANAGEMENT THE PARENT OF JW CHARLES/CSG ALTHOUGH THE FIRM PREACHES ABOUT BEING THE WHITE KNIGHTS IN BOCA RATON'S MUCHCRITICIZED FINANCIAL COMMUNITY CORPORATE MANAGEMENT IS PLANNING TO ACQUIRE SIX BRANCHES OF WOLF FINANCIAL'S EMBATTLED FN WOLF & CO A BROKERAGE FIRM UNDER ASSAULT FROM SECURITIES REGULATORS WHICH HAS TIES TO THE OLD HIGHPRESSURE BROKERAGE HOUSE FIRST JERSEY SECURITIES INC MR KASS'S FIRM INSISTS IT ISN'T PICKING UP BAD APPLES AND HAS NO CONNECTION WITH FIRST JERSEY OUR FIRM IS SQUEAKY CLEAN HE SAYS MR KASS SETTLED SECURITIES AND EXCHANGE COMMISSION CIVIL CHARGES LAST YEAR THAT HE DIDN'T MAKE ADEQUATE DISCLOSURES IN CONNECTION WITH A 1990 TAKEOVER BID HE SAYS HE WAS IN INTENSIVE CARE RECOVERING FROM A CRIPPLING HARNESSRACING INJURY IN THE SUMMER OF 1990 WHICH CONTRIBUTED TO THE ALLEGED DISCLOSURE PROBLEM HIS NEARFATAL ACCIDENT DIDN'T TURN HIM INTO A CYNIC SAYS MR KASS HE HAS BEEN THAT WAY SINCE HIS NADER RAIDER DAYS HE CONCEDES I REALLY VIEW THE WORLD AS THE GLASS IS HALFEMPTY AS OPPOSED TO HALFFILLED I HAVE TO ADMIT TO THAT 9312170090 931217 MONEYMARKET FUNDS REPORT DROP IN ASSETS FOR THE LATEST WEEK WASHINGTON ASSETS OF MONEYMARKET MUTUAL FUNDS SLID 663 BILLION TO 59515 BILLION FROM A REVISED 60178 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 652 RETAIL MONEYMARKET MUTUAL FUNDS FELL 233 BILLION TO 39825 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 406 TAXABLE MONEYMARKET FUNDS DECREASED 17 BILLION TO 30998 BILLION ASSETS OF 246 RETAIL TAXEXEMPT FUNDS FELL 6226 MILLION TO 8827 BILLION ASSETS OF THE 274 INSTITUTIONAL MONEYMARKET FUNDS FELL 43 BILLION TO 1969 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 220 TAXABLE MONEYMARKET FUNDS FELL 376 BILLION TO 17438 BILLION ASSETS OF 54 TAXEXEMPT FUNDS FELL 5452 MILLION TO 2252 BILLION 9312170089 931217 TOYS MOMMY'S HAVING A BABY AND OTHER DOLLS OF THE SEASON BY CLARE ANSBERRY STAFF REPORTER OF THE WALL STREET JOURNAL FOR THE CHILD WHO HAS EVERYTHING THERE ARE DOLLS THAT DO EVERYTHING THEY HAVE BABIES DIRTY THEIR DIAPERS AND RUN FEVERS THEIR FEET KICK THEIR HEARTS BEAT THEY CRUISE AROUND IN REMOTECONTROLLED WALKERS THEY DON'T JUST SAY MAMA THEY BURP AND SAY YUCKY AND PUZGHETTI IF THE DOLLS DON'T DO IT ALL THEIR ACCESSORIES DO TAKE LEWIS GALOOB TOYS INC'S SUZY SNAPSHOT OR RATHER TAKE SUZY'S PICTURE AS SHE SWINGS HER LONG BLONDE HAIR FROM SIDE TO SIDE WITH A CAMERA THAT REALLY FLASHES HASBRO'S HOMELY CABBAGE PATCH NEWBORNS NOW COME WITH BABY MONITORS THAT WAY THE BUSY CHILD CAN KEEP TABS ON THE NAPPING DOLL WHILE PLAYING WITH ANOTHER TOY THE QUEEN OF EXTRAS THOUGH MAY BE MATTEL INC'S SALLY SECRETS HER BELT DISPENSES STICKERS HER TENNIS SHOES CONCEAL AN INK PAD AND ROLLER STAMP AND HER HAIR COMB DOUBLES AS A NOTE PAD HOLDER IF THAT'S NOT ENOUGH YOU CAN BUY A 50STICKER REFILL PACK FRANKLY I THINK IT'S THE ADULTS WHO ARE ENCHANTED WITH THESE THINGS SAYS PITTSBURGH PSYCHOLOGIST MIRIAM WINIKOFF I DON'T THINK KIDS REALLY CARE IF THEIR DOLLS EAT POOP OR HAVE BABIES OF THEIR OWN WHOEVER WANTS THEM DOLLS TODAY ARE MORE POPULAR THAN EVER BARBIE ALONE IS A 1 BILLIONAYEAR WORLDWIDE EMPIRE BUT UNLIKE DOLLS OF THE PAST CORNCOB RAG AND PORCELAIN TODAY'S DOLLS ARE LESS AND LESS OBJECTS OF FANTASY THEY ARE BEING BUILT TO BE MORE LIKE PEOPLE OR AT LEAST PRETTY AND SHAPELY FEMALE PEOPLE THESE DOLLS ENABLE THE BABY BOOMER BOOMLET TO HAVE A PLASTIC OR STUFFED BOOMLET OF ITS OWN WITH TYCO TOYS INC'S MOMMY'S HAVING A BABY CHILDREN CAN TOUCH MOMMY'S SOFT TUMMY FEEL THE BABY INSIDE AND GIVE MOMMY AN ULTRASOUND WITH A SPECIAL MONITOR ALL FOR 2999 THE BABY SLIPS OUT OF A VELCRO OPENING IN THE MATERNITY DRESS ALLOWING FOR REPEAT BIRTHS THAT'S ONLY HALF THE FUN NOW THAT BABY HAS ARRIVED COMB AND STYLE MOMMY'S LONG BEAUTIFUL HAIR REMOVE MOMMY'S MATERNITY DRESS TO REVEAL HER STYLISH NEW OUTFIT READS THE PROMOTIONAL MATERIAL GREAT SIGHS MARIE WILSON PRESIDENT OF THE MS FOUNDATION FOR WOMEN THE BABY POPS OUT AND MOMMY IS PRETTY AGAIN THE MESSAGE IS GIRLS ARE MOTHERS GIRLS ARE PRETTY NOTHING MORE DR PAULA K RAUCH A CHILD PSYCHIATRIST AT MASSACHUSETTS GENERAL HOSPITAL WORRIES THAT CHILDREN MIGHT SOMEHOW THINK THAT ALL BABIES ARE BORN BY VELCRO CAESAREAN NOT TRUE TYCO COUNTERS B JAMES ALLEY SENIOR VICE PRESIDENT OF MARKETING POINTS TO AN ENDORSEMENT FROM NEW HAVEN CHILD DEVELOPMENT SPECIALIST BEATRICE FEINBERG MS FEINBERG SAYS THE DOLL REFLECTS THE NATURAL WONDERS AND CURIOSITY CHILDREN HAVE ABOUT PREGNANCY CHILDBIRTH AND PARENTING IN A SENSITIVE AGEAPPROPRIATE WAY MORAL TOO MOMMY WEARS A WEDDING RING IF TYCO'S DOLL IS TOO GRAPHIC THERE'S MATTEL'S MY BUNDLE BABY DOLL A BUNDLE THE SIZE OF A PILLOW THAT CONTAINS A DOLL INSIDE THE BABY'S FEET KICK AND HEART BEATS WHEN YOU BUY THE BUNDLE YOU DON'T KNOW IF YOU'LL BE RAISING A BOY A GIRL OR TWINS AND FOR THOSE WHO LIKE BABIES BUT WANT TO SIDESTEP HUMAN ANATOMY HASBRO OFFERS THREE LITTER OPTIONS FOR ABOUT 35 EACH PUPPY SURPRISE KITTY SURPRISE AND PONY SURPRISE EACH STUFFED ANIMAL HAS UP TO FIVE BABIES TUCKED INSIDE A VELCRO POUCH ON MOMMY'S BELLY THE SURPRISE HERE IS YOU DON'T KNOW HOW MANY WILL BE IN THE LITTER TO EXPERIENCE MOTHERHOOD AFTER BIRTH THERE'S TYCO'S MAGIC POTTY BABY FOR ABOUT 30 FEED MAGIC POTTY BABY SIT HER ON THE SPECIAL POTTY WATCH IT FILL PRESS THE LEVER AND LISTEN TO THE FLUSH NO WATER NO MESS IT'S MAGIC THE BOX PROMISES THERE'S MORE A MAGIC POTTY BABY TRAINING MANUAL ENCOURAGES CHILDREN TO REWARD MAGIC POTTY BABY WITH ENCLOSED SHINY STAR STICKERS AT LAST REMOTE CONTROL IS NO LONGER JUST FOR BOYS AND TRUCKS GIRLS CAN NOW SPEED THEIR DOLLS AROUND IN A REMOTECONTROLLED WALKER FOR ABOUT 40 TO 45 WITH MATTEL'S BABY WALK 'N ROLL WHILE THE WALKER GOES FORWARD BACKWARD AND IN CIRCLES THE DOLL MOVES HER ARMS AND LEGS BOBS HER HEAD AND GIGGLES ACTUALLY THE WALKER GIGGLES TYCO HAS A SIMPLER BUMPANDRUN VERSION CALLED BABY GIGGLES 'N GO RETAILING FOR ABOUT 35 THE SELFPROPELLED WALKER MOVES IN A STRAIGHT LINE UNTIL IT HITS SOMETHING AT WHICH POINT THE DOLL GIGGLES AND CONTINUES IN ANOTHER DIRECTION ALTHOUGH IT DOESN'T HAVE A REMOTE CONTROL THE WALKER COMES IN TWO SPEEDS SLOW AND FAST BOTH ARE RELATIVELY SLOW BECAUSE WE DON'T WANT THE DOLL RUNNING AWAY FROM LITTLE GIRLS SAYS TYCO'S MR ALLEY TOY BIZ INC'S BABY LOVES TO TALK ALSO GOES ON AND ON AND ON THE DOLL IS PROGRAMMED TO SAY CERTAIN WORDS OR PHRASES INCORRECTLY SOME NUMBER OF TIMES UP TO 250 IT MIGHT SAY PUZGHETTI OR WUV AT WHICH POINT THE CHILD IS SUPPOSED TO SAY NO SPAGHETTI OR NO IT'S LOVE THE DOLL RETAILING FOR ABOUT 30 THEN GIGGLES AND SAYS THE CORRECT WORD A FORGET BUTTON ALLOWS THE CHILD TO TEACH THE DOLL HOW TO SAY SPAGHETTI ALL OVER AGAIN IT'S THE ONLY DOLL EVER CREATED THAT REALLY ENGAGES IN SOMETHING OF A CONVERSATION SAYS BARRY SCHWARTZ SPOKESMAN FOR TOY BIZ A SUBSIDIARY OF MARVEL ENTERTAINMENT INC OTHER DOLLS MAY TALK BUT THIS IS MORE USER FRIENDLY IT'S NOT ENOUGH FOR THESE DOLLS TO LOOK PRETTY YOUR CHILDREN MUST LOOK PRETTY TOO TOY BIZ'S PRETTY & ME COMES WITH THREE WASHABLE HAIRCOLORING STICKS AS WELL AS COSMETICS WHICH CAN BE SHARED WITH YOUR CHILD YOUR FIVEYEAROLD CAN DYE HIS OR HER OWN HAIR PINK YELLOW OR BLUE TO MATCH PRETTY & ME WHICH SELLS FOR ABOUT 25 UNFORTUNATELY FOR BRUNETTES THE HAIR COLOR DOESN'T WORK WELL ON DARK HAIR HOWEVER NONBLONDES CAN WEAR PRETTY & ME'S LITTLE WIGLETS OF COLORED HAIR THE STYLING OPTIONS ARE ENDLESS AND TO PROVE IT TOY BIZ RECRUITED A NEW YORK HAIR STYLIST TO TURN PRETTY & ME DOLLS INTO A MINIMADONNA IVANA TRUMP AND TINA TURNER NOT TO BE OUTDONE THE PEOPLE AT MATTEL HAVE COME UP WITH A THREEFOOTTALL BARBIE WHO SHARES HER WARDROBE THANKS TO NYLON AND SPANDEX FIVE AND SIXYEAROLDS SMALL MEDIUM OR LARGE CAN NOW MODEL BARBIE'S BATHING SUIT BALLET COSTUME OR EVENING GOWN THERE'S A REAL WOW FACTOR WITH CHILDREN SAYING BARBIE IS AS BIG AS ME SHE CAN TRULY BE MY FRIEND' SAYS MATTEL SPOKESPERSON DONNA GIBBS MY SIZE BARBIE RETAILS FOR ABOUT 125 IF ALL THESE DOLLS AREN'T ENOUGH HASBRO WILL SOON INTRODUCE A LINE OF ELVIS DOLLS FEATURING HIM AT SIX DIFFERENT POINTS IN HIS LIFE NO THE DOLL DOESN'T GET FATTER IN EACH ONE SAYS A HASBRO SPOKESPERSON 9312170088 931217 MARKETING & MEDIA INTERNATIONAL FAMILY ACQUISITION VIRGINIA BEACH VA INTERNATIONAL FAMILY ENTERTAINMENT INC SAID IT ACQUIRED A MAJORITY STAKE IN CALVIN GILMORE PRODUCTIONS LTD A PRODUCER OF LIVE VARIETY SHOWS FOR ABOUT 20 MILLION IN CASH AND NOTES CALVIN GILMORE STAGES LIVE MUSIC SHOWS IN THREE THEATERS IN THE MYRTLE BEACH SC AREA INTERNATIONAL FAMILY ENTERTAINMENT OWNS THE FAMILY CHANNEL CABLETELEVISION NETWORK 9312170087 931217 AMERICAN STORES TO SETTLE SEXBIAS SUIT BY PAYING AS MUCH AS 1073 MILLION BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN STORES CO AGREED TO PAY AS MUCH AS 1073 MILLION TO SETTLE A SEXDISCRIMINATION SUIT FILED AGAINST THE NORTHERN CALIFORNIA UNIT OF ITS LUCKY STORES GROCERY CHAIN ALLEGING THAT LUCKY SYSTEMATICALLY EXCLUDED WOMEN IN ITS HIRING AND PROMOTION PRACTICES THE SETTLEMENT IS BELIEVED TO BE SECOND IN SIZE IN A SEXDISCRIMINATION CASE ONLY TO A 240 MILLION SETTLEMENT THAT STATE FARM INSURANCE COS MADE LAST YEAR THE CLASSACTION LAWSUIT AGAINST LUCKY FILED IN SAN FRANCISCO FEDERAL COURT IN 1988 ON BEHALF OF 20000 WOMEN ALLEGED THAT THE CHAIN'S TREATMENT OF WOMEN VIOLATED A SECTION OF THE CIVIL RIGHTS ACT KNOWN AS TITLE VII AMERICAN STORES BASED IN SALT LAKE CITY SAID IN A STATEMENT THAT THE SETTLEMENT IS WITHIN THE FINANCIAL RESERVES ALREADY TAKEN BY THE COMPANY PLUS INSURANCE COVERAGES AS A RESULT IT SAID THAT THE PAYMENT OF DAMAGES WILL NOT HAVE AN IMPACT ON CURRENT OR FUTURE FINANCIAL RESULTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AMERICAN STORES STOCK ROSE 2125 OR 51 TO CLOSE AT 44125 A SHARE LUCKY VIGOROUSLY DEFENDED ITS EQUALEMPLOYMENT OPPORTUNITY POLICIES THROUGHOUT THE LAWSUIT AND DENIES ANY VIOLATION OF CIVILRIGHTS LAWS THE STATEMENT ADDED AFTER A TRIAL IN THE CASE IN AUGUST 1992 HOWEVER FEDERAL JUDGE MARILYN H PATEL FOUND LUCKY LIABLE FOR SEX DISCRIMINATION IN ITS JOB ASSIGNMENTS PROMOTIONS ALLOCATION OF HOURS AND FULLTIME WORK THE JUDGE ISSUED 195 PAGES OF FINDINGS OUTLINING ILLEGAL ACTS BY LUCKY A THREEWEEK TRIAL ON DAMAGES WAS HELD IN OCTOBER 1992 AND A HALFDOZEN ADDITIONAL HEARINGS HAVE BEEN HELD SINCE THE JUDGE'S DECISION ON THE AMOUNT OF DAMAGES WAS STILL PENDING WHEN THE SETTLEMENT WAS REACHED BUT SHE HAD INDICATED IN COURT PAPERS THAT SHE WAS LIKELY TO SET DAMAGES AT ABOUT 90 MILLION BRAD SELIGMAN THE WOMEN'S LAWYER SAID THAT AS OF 1984 ONLY 3 OF ALL MANAGERS AT LUCKY WERE WOMEN AND ONLY 12 OF NEW ENTRANTS INTO THE COMPANY'S MANAGEMENT RANKS WERE WOMEN YESTERDAY MR SELIGMAN CHARACTERIZED AMERICAN STORES' DEFENSE DURING A TRIAL LAST YEAR AS SAYING THAT WOMEN EMPLOYEES WHO NEVER REACHED MANAGEMENT RANKS REALLY DIDN'T WANT TO BE MANAGERS BUT KIRBY WILCOX A LAWYER FOR AMERICAN STORES SAID YESTERDAY OUR DEFENSE WAS THAT MEN AND WOMEN WERE BOTH INTERESTED IN ALL OF THE STORE OPPORTUNITIES BUT THE DEGREE OF THAT INTEREST DIFFERED WOMEN WERE LESS INTERESTED IN NIGHT WORK AND FULLTIME WORK AND THAT DIFFERENCE PERSISTS TODAY DESPITE THE STORES' EFFORTS TO GIVE WOMEN NOTICE OF EQUALADVANCEMENT OPPORTUNITIES THE CASE IS ONE OF SEVERAL IN THE PAST SIX YEARS THAT HAS PITTED SAN FRANCISCO DEFENSE POWERHOUSE MORRISON & FOERSTER AGAINST THE OAKLAND CALIF PLAINTIFF'S FIRM SAPERSTEIN MAYEDA & GOLDSTEIN THE TWO SIDES DISPUTED THE TOTAL AMOUNT OF THE SETTLEMENT THIS CASE IS SETTLING FOR 7425 MILLION IN PAYMENTS TO THE NAMED REPRESENTATIVES TO THE CLASS AND TO THEIR COUNSEL MR WILCOX SAID EVERY ADDITIONAL DOLLAR IS THE COST OF IMPLEMENTING ANY SETTLEMENT MR WILCOX SAID THAT AN ADDITIONAL 13 MILLION WILL BE OWED BY HIS CLIENT UNDER THE SETTLEMENT IF IT FAILS TO MEET CERTAIN EMPLOYMENT TARGETS AND PRACTICES BUT MR SELIGMAN SAID THE SETTLEMENT ALSO INCLUDES 20 MILLION IN NEW COSTS RELATED TO THE COMPANY'S REVAMPED SYSTEM OF BIDDING FOR JOBS POSTING NOTICES GOVERNMENT EMPLOYMENT REPORTING AND NEW SALARIES FOR INCREASED PERSONNEL COMPLIANCE MR WILCOX SAYS IT'S STANDARD PRACTICE TO OMIT SUCH COSTS IN DETERMINING A TOTAL SETTLEMENT BECAUSE ANY SOPHISTICATED PERSONNEL DEPARTMENT WOULD HAVE TO INCUR SUCH COSTS IN ANY EVENT ABOUT 14000 CURRENT OR FORMER EMPLOYEES WILL SHARE IN THE CASH PORTION OF THE SETTLEMENT YIELDING AN AVERAGE AWARD OF ABOUT 5000 MR SELIGMAN SAID THE OVERALL TERMS OF THE SETTLEMENT COVER 20000 WOMEN WHO WORKED AT LUCKY STORES IN NORTHERN CALIFORNIA BETWEEN JUNE 1983 AND OCTOBER 1991 MR SELIGMAN SAID THE SETTLEMENT WILL BE SUBMITTED FOR JUDGE PATEL'S PRELIMINARY APPROVAL NEXT MONTH HE SAID FINAL APPROVAL IS EXPECTED IN MARCH 9312170086 931217 DICKSON EXPRESIDENT OF LINCOLN SAVINGS RECEIVES PROBATION LOS ANGELES AN OFFICER OF TWO COMPANIES CONTROLLED BY FORMER THRIFT OPERATOR CHARLES H KEATING JR HAS BEEN SENTENCED TO FIVE YEARS' PROBATION FOR BANK AND SECURITIES FRAUD BRUCE F DICKSON FORMER PRESIDENT OF NOWDEFUNCT LINCOLN SAVINGS & LOAN ASSOCIATION AND A VICE PRESIDENT OF ITS PHOENIX PARENT AMERICAN CONTINENTAL CORP REACHED A PLEA AGREEMENT WITH PROSECUTORS IN DECEMBER 1991 HE ADMITTED THAT HE APPROVED UNDERWRITING DOCUMENTS THAT FRAUDULENTLY REPRESENTED THAT CERTAIN LOANS WERE ARMSLENGTH TRANSACTIONS MR DICKSON NOW 40 YEARS OLD WAS TARGETED BY A GOVERNMENT TASK FORCE AIMED AT MR KEATING 70 AND MANY OF HIS BUSINESS ASSOCIATES PROSECUTORS WENT AFTER NINE MEN AND ONE WOMAN FOR CRIMES COMMITTED UNDER THEIR STEWARDSHIP OF AMERICAN CONTINENTAL OF WHICH MR KEATING WAS CHAIRMAN AND LINCOLN SAVINGS WHICH WAS BASED IN IRVINE CALIF ALL 10 TARGETS OF THE TASK FORCE PLED GUILTY OR WERE CONVICTED OF CRIMES BETWEEN OCTOBER 1990 AND JANUARY 1993 LAST TUESDAY MR KEATING'S SON IN LAW ROBERT M WURZELBACHER JR WAS SENTENCED TO THREE YEARS AND FOUR MONTHS IN PRISON FOR MISAPPLYING 139 MILLION IN LINCOLN FUNDS IN 1986 AND 1987 MR WURZELBACHER 39 HAD BEEN A SENIOR VICE PRESIDENT OF AMERICAN CONTINENTAL HE PLED GUILTY IN MAY 1992 LINCOLN'S COLLAPSE WAS AMERICA'S COSTLIEST THRIFT FAILURE WITH A PRICE TAG OF 34 BILLION 9312170085 931217 INTERNATIONAL REPORTER'S NOTEBOOK THEME MUSIC OF SURREAL SERB POLITICS IS HELLO DALI' BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL BELGRADE THE RULING SOCIALIST PARTY CALLS A NEWS CONFERENCE TO TRUMPET ITS ELECTION PLATFORM THE GOVERNMENT SPOKESMAN JOVIALLY ANNOUNCES THAT HE WILL ANSWER ANY AND ALL QUESTIONS THE JOURNALISTS BEGIN ASKING THE SPOKESMAN CHANGES HIS MIND I'M NOT HERE TO SATISFY YOUR CURIOSITY OR TO ANSWER YOUR QUESTION IVICA DACIC LECTURES ONE REPORTER WHO WONDERED WHAT THE GOVERNMENT IS GOING TO DO TO CURB INFLATION NOW GALLOPING AHEAD AT 30000 A MONTH I'M HERE TO STATE THE GOALS OF MY PARTY HIS STAFF HANDS OUT A NEWSLETTER PEACE ECONOMIC AND CULTURAL REVIVAL COMBATING CRIME THOSE ARE THE PARTY'S GOALS A TALL ORDER FOR A GOVERNMENT THAT HAS WAGED WAR IN CROATIA AND BOSNIAHERZEGOVINA FOR THE PAST 30 MONTHS PRINTED SO MANY DINARS AS TO RENDER THE CURRENCY WORTHLESS AND PROMOTED A WAVE OF GANGSTERISM TO CIRCUMVENT INTERNATIONAL SANCTIONS THE JOURNALISTS CLAMOR FOR DETAILS THE SOCIALISTS HAND OUT FREE PENS AND NOTEBOOKS AND HOLIDAY GREETINGS A NOTE STAPLED TO THE NEWSLETTER SAYS WE WISH TO YOU MERRY CHRISTMAS AND A HAPPY NEW YEAR HOURS LATER OPPOSITION RADIO AND TELEVISION STATIONS GET ANOTHER PRESENT THEIR BROADCASTS ARE JAMMED COVERING SERBIA'S PARLIAMENTARY ELECTION SCHEDULED FOR SUNDAY A VOTE IN WHICH POLITICIANS ARE STANDING DEFIANTLY IN THE FACE OF INTERNATIONAL CONDEMNATION IS MORE ALICE IN WONDERLAND THAN BOYS ON THE BUS HERE IS A GLIMPSE OF A WEEK OF BALKAN POLITICS BEYOND THE LOOKING GLASS HOW CRUCIAL IS THE POCKETBOOK ISSUE THE DINAR 10 BILLION ARE WORTH ONE DOLLAR IS SO WORTHLESS THAT THE BELGRADE ZOO NOW OFFERS VISITORS AN ADMISSION PRICE BASED ON FOOD THAT THE ANIMALS CAN EAT ONE ADULT TICKET COSTS ONE KILOGRAM OF PEANUTS TWO KILOS OF OATS SIX EGGS HALF A KILO OF BANANAS THREE KILOS OF CORN OR FOUR KILOS OF APPLES A KILO IS ABOUT 22 POUNDS FOR THOSE SHORT ON FOOD THE ZOO WILL ALSO TAKE CONSTRUCTION MATERIALS THREE BRICKS TWO CINDER BLOCKS OR FIVE KILOS OF CEMENT PER ADULT LEAVE YOUR WALLETS AT HOME ADVISES THE ZOO'S MANAGEMENT GIVEN SUCH RUINATION THE SOCIALIST PARTY OF PRESIDENT SLOBODAN MILOSEVIC SHOULD BE STARING AT DEFEAT INSTEAD IT IS CONFIDENT OF VICTORY IN FACT IT IS RUNNING ON ITS ECONOMIC RECORD SAYING THAT IT IS DOING THE BEST IT CAN IN THE FACE OF INTERNATIONAL SANCTIONS IMPOSED AGAINST SERBIA FOR ITS ROLE IN THE WAR IF REELECTED THE GOVERNMENT IS PROMISING TO ENACT MEASURES WHICH WOULD MAKE THE BURDEN OF THE PRESENT CRISIS AND UNJUST SANCTIONS EQUAL FOR ALL CITIZENS IN OTHER WORDS A MOREFAIR DISTRIBUTION OF THE POVERTY IN A CAVERNOUS BASKETBALL ARENA THE LIGHTS DIM AND A CURTAIN RISES ON AN ORCHESTRA AND A TEENAGE CHOIR SINGING OVER AND OVER AGAIN ONLY UNITY SAVES THE SERBS A WOMAN STRIDES TO THE MICROPHONE BELGRADE WILL BE THE CAPITAL OF THE UNITED STATES OF SERBIA SHE ANNOUNCES IN ENGLISH IT SOUNDS GOOD A BALD GYPSY SINGER CROONS ABOUT SERBIA'S PLACE IN THE WORLD A SERBIAN VERSION OF MADONNA WEARING A WHITE WEDDING DRESS SINGS ABOUT A MAN WHO WOULDN'T LEAVE HIS FAMILY FOR ANOTHER WOMAN A ROCK SINGER SPORTING A BANDANNA WITH HIS TUXEDO WAILS HELP ME MY FRIENDS A SPOTLIGHT FOCUSES ON THE CANDIDATES OF THE SERBIAN UNITY PARTY THERE IS AN AUTO MECHANIC A SANITATION INSPECTOR AN ATOMIC PHYSICIST A BABYFACED MAN IN A BLACK DOUBLEBREASTED SUIT BURSTS ONTO THE STAGE FIREWORKS CRACKLE SPARKLERS SHINE IT IS ARKAN THE NOM DE GUERRE OF ZELJKO RAZNATOVIC ICECREAM PARLOR PROPRIETOR PARAMILITARY CHIEF AND PARTY LEADER THE UNITED STATES OF AMERICA WHERE HE SPENT HIS HONEYMOON HAS ACCUSED HIM OF BEING A WAR CRIMINAL FOR HIS UNIT'S ACTIONS IN CROATIA AND BOSNIA SAFE IN BELGRADE HE SHOUTS WE HAVE A DREAM AND WE CALL THAT DREAM THE UNITED STATES OF SERBIA THE ROTTEN SMELL OF SULFUR FROM SPENT FIREWORKS HANGS OVER THE STAGE SERBIA HE SAYS WILL UNITE CONQUERED REGIONS OF BOSNIA AND CROATIA SERBIA HE SAYS WON'T YIELD ANY TERRITORY FOR THE SAKE OF PEACE SERBIA HE SHOUTS NO SURRENDER CHANTS THE AUDIENCE THE ORCHESTRA BEGINS TO PLAY AGAIN THE CHOIR SINGS ONLY UNITY SAVES THE SERBS ACROSS TOWN IN AN AUDITORIUM USUALLY USED FOR BEAUTY CONTESTS THE CHANT GOES UP SLOBO SLOBO SERBIA SERBIA PRESIDENT SLOBODAN MILOSEVIC A RED ROSE PINNED TO THE LAPEL OF HIS BLACK SUIT BEAMS I'M HAPPY TO SEE ALL THE POSITIVE ENERGY AND OPTIMISM AND GOOD WILL TO VOTE FOR OUR SUCCESSFUL PEACEFUL POLICY HE SAYS WE LIVE TODAY UNDER MUCH PRESSURE WE ARE LIVING IN STORMY TIMES IN POVERTY BUT BECAUSE OF THIS WE NEED A STABLE PARLIAMENT AND A STRONG SERBIA IT IS A RARE CAMPAIGN APPEARANCE FOR A LEADER WHO AVOIDS THE PUBLIC HE SPEAKS ONLY FOR SEVERAL MINUTES ABOUT ONLY ONE THING A VOTE FOR SLOBO IS A VOTE FOR A STRONG SERBIA CHEERS HE SAYS THEN HE IS GONE 9312170084 931217 PRUDENTIAL PLANS TO REJECT SOME CLAIMS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC PLANS TO REJECT LIMITEDPARTNERSHIP CLAIMS MADE BY MANY WELLHEELED CUSTOMERS AS PART OF A RECENT SETTLEMENT AGREEMENT WITH REGULATORS AT ISSUE IS 21 BILLION IN PRIVATE PARTNERSHIPS SOLD IN THE 1980S TO WEALTHY INVESTORS THESE REGULATION D PARTNERSHIPS WERE EXEMPT FROM SOME FEDERAL REGISTRATION REQUIREMENTS AND OFTEN WERE BOUGHT AS TAX SHELTERS PRUDENTIAL SAID IT SOLD 340 OF THESE REALESTATE ENERGY AND LEASING PARTNERSHIPS TYPICALLY TO INVESTORS WITH ANNUAL INCOMES OF AT LEAST 200000 OR WHO HAD ASSETS OF 1 MILLION OR MORE NOW PRUDENTIAL SAYS MANY OF THOSE INVESTORS WERE SOPHISTICATED ENOUGH TO KNOW THE PARTNERSHIPS' RISKS AND SHOULDN'T GET AN AWARD IN THE SETTLEMENT PROCESS UNDER THE OCTOBER ACCORD REACHED WITH THE SECURITIES AND EXCHANGE COMMISSION AND 49 STATE REGULATORS PRUDENTIAL AGREED TO PAY AT LEAST 330 MILLION TO INVESTORS WHO WERE ALLEGEDLY DEFRAUDED INTO BUYING HIGHRISK PARTNERSHIPS IN THE 1980S THESE WERE PEOPLE WHO WERE SOPHISTICATED AND UNDERSTOOD ALL THE RAMIFICATIONS OF INVESTING IN THESE PARTNERSHIPS SAID JOHN MURRAY PRUDENTIAL'S DIRECTOR OF CORPORATERISK MANAGEMENT THOUGH PRUDENTIAL PLANS TO CONSIDER THE CASES INDIVIDUALLY MR MURRAY SAID WE DON'T THINK WE HAVE MUCH EXPOSURE TO THOSE PRUDENTIAL'S STANCE HAS STIRRED CONTROVERSY AND APPEARS TO CONTRADICT SEVERAL DRAMSHOP ARBITRATION DECISIONS OF RECENT YEARS THOSE CASES IN WHICH BROKERAGE FIRMS HAVE BEEN ORDERED TO PAY DAMAGES IN DISPUTES WITH EVEN THE MOST SOPHISTICATED INVESTORS STEM FROM THE NOTION THAT BARTENDERS HAVE A DUTY TO CUT OFF PATRONS WHO DRINK TOO MUCH THESE CASES SUGGEST THAT BROKERS MUST STOP EVEN SAVVY AND WEALTHY INVESTORS FROM GETTING IN OVER THEIR HEADS THE PRUDENTIAL CASE IS EVEN MORE HEAVILY WEIGHTED TOWARD INVESTORS SOME PLAINTIFF LAWYERS ARGUE THAT'S BECAUSE THE SEC SETTLEMENT ACCUSED PRUDENTIAL OF WIDESPREAD FRAUD IN SELLING ABOUT 8 BILLION OF PARTNERSHIPS TO 340000 INVESTORS IN THE '80S ROBERT REX A BOCA RATON FLA LAWYER REPRESENTING CLIENTS WITH CLAIMS AGAINST PRUDENTIAL SAID YOU'RE NEVER SOPHISTICATED ENOUGH THAT FRAUD IS SUITABLE THE WAY THESE PRIVATEPARTNERSHIP CASES ARE DECIDED WILL GO A LONG WAY TOWARD DETERMINING HOW MUCH PRUDENTIAL SECURITIES HAS TO PAY UNDER THE ACCORD THE 330 MILLION IS MERELY A DOWN PAYMENT THE SEC SAID THE RESTITUTION FUND IS OPENENDED SOME REGULATORS AND ANALYSTS BELIEVE THE LIABILITY FOR THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT ULTIMATELY COULD SOAR TO 1 BILLION PRUDENTIAL CONTINUES TO MAINTAIN THAT 330 MILLION WILL COVER THE SETTLEMENT CLAIMS IF THEY TAKE THIS STANCE AND ARE SUCCESSFUL IN WIPING OUT 2 BILLION OF LIABILITY IT'S CONCEIVABLE THAT THEY'D PAY IN THE RANGE OF 330 MILLION SAID J BOYD PAGE AN ATLANTA LAWYER REPRESENTING CLIENTS WITH CLAIMS AGAINST PRUDENTIAL BUT I'VE GOT TO BELIEVE WHEN ALL THE FACTS COME OUT THAT THE REGD' INVESTORS WILL BE INCLUDED AND ENTITLED TO RECOVERIES IN THE REPARATIONS PROCESS UNDER THE SETTLEMENT ACCORD INVESTORS WHO BOUGHT PRUDENTIAL PARTNERSHIPS WILL RECEIVE A CLAIMS FORM TO TRY TO RECOVER MONEY FROM THE BIG BROKER PRUDENTIAL WILL THEN OFFER EITHER A SETTLEMENT OR REJECT THE CLAIM IF INVESTORS ARE DISSATISFIED THEY CAN SUBMIT THE CLAIM TO AN ARBITRATOR SELECTED BY AN INDEPENDENT CLAIMS ADMINISTRATOR WHO WILL MAKE A BINDING RULING ON THE MATTER IF THEY WERE DEFRAUDED THERE'S NO QUESTION THEY'VE GOT TO GET PAID NO MATTER HOW RICH THEY WERE SAID IRVING M POLLACK THE CLAIMS ADMINISTRATOR WHO IS A FORMER SEC COMMISSIONER AND ENFORCEMENT CHIEF BUT MR POLLACK ADDED THAT THE PRIVATE PARTNERSHIPS PROBABLY WERE SUITABLE FOR MANY WEALTHY INVESTORS WHO BOUGHT THEM FOR TAX PURPOSES THOSE PEOPLE WILL HAVE A HARDER CASE BECAUSE OF THE NATURE OF THE FACTS HE SAID IF INVESTORS WANTED TO PURSUE REJECTED CLAIMS THEY WOULD HAVE TO CONVINCE AN ARBITRATOR THAT THE PERSON WHO MARKETED THE PRIVATE PARTNERSHIP TO THEM WAS DECEPTIVE AND FRAUDULENT MR POLLACK SAID THOSE PEOPLE WOULDN'T BE THROWN OUT JUST BECAUSE THEY'RE RICH OR BOUGHT THE PARTNERSHIPS AS TAX SHELTERS ANY INVESTOR WHO SUBMITS A CLAIM CAN RECOVER COMPENSATORY DAMAGES THAT COVER LOSSES BUT NOT PUNITIVE DAMAGES OR ATTORNEYS' FEES INVESTORS ALSO WILL BE ELIGIBLE TO RECOVER INTEREST CALCULATED AT THE ANNUALIZED TREASURYBILL RATE DURING THE TIME OF THE INVESTMENT MR POLLACK SAID PRUDENTIAL FOR ITS PART IS BEING CAREFUL NOT TO FLATLY SAY ALL PRIVATEPARTNERSHIP CASES WILL BE REJECTED THE FIRM CONTINUES TO URGE EVEN SOPHISTICATED INVESTORS TO FILE SETTLEMENT CLAIMS MORE THAN LIKELY THERE WILL BE CASES WHERE INDIVIDUAL INVESTORS DIDN'T GET A SQUARE DEAL FROM US A PRUDENTIAL SPOKESMAN SAID BUT ON AN INDIVIDUAL BASIS WE DON'T THINK WE HAVE A LOT OF LIABILITY THE BROKERAGE FIRM COULD BE PROVEN WRONG THE SPOKESMAN ADDED BUT WE DON'T THINK SO 9312170083 931217 INDONESIA'S SALIM GROUP SEEKS TO RAISE AS MUCH AS 1 BILLION OFFSHORE IN 1994 BY RICHARD BORSUK STAFF REPORTER OF THE WALL STREET JOURNAL JAKARTA INDONESIA INDONESIA'S POWERFUL SALIM GROUP HOPES TO RAISE AS MUCH AS 1 BILLION OFFSHORE NEXT YEAR POSSIBLY BY LISTING A NEW HOLDING COMPANY ON A FOREIGN STOCK EXCHANGE A SENIOR GROUP EXECUTIVE SAID THE EXECUTIVE SAID THE FUNDS WOULD BE USED IN INDONESIA PARTLY FOR DEBT REPAYMENT BUT MORE FOR INFRASTRUCTURE AND OTHER PROJECTS AS ONE POSSIBLE USE HE CITED A SALIM PROPOSAL WITH ENRON CORP OF THE US TO INVEST IN A GASFIRED 500MEGAWATT POWER PLANT IN EAST JAVA NEGOTIATIONS HAVEN'T BEGUN WITH INDONESIAN AUTHORITIES ON THE PRIVATE POWER PROJECT WHICH COULD COST AT LEAST 500 MILLION ACCORDING TO THE SALIM EXECUTIVE MANY POSSIBLE WAYS OF RAISING FUNDS ARE BEING STUDIED INCLUDING OBTAINING A LISTING ON THE STOCK EXCHANGES OF SINGAPORE HONG KONG OR NEW YORK WE HAVEN'T DECIDED WHICH ALTERNATIVE IS BEST HE SAID ANOTHER SALIM EXECUTIVE SAID THAT THE IDEA OF HAVING A NEW HOLDING COMPANY WOULD BE TO LINK GROUP ASSETS NOW IN HONG KONG UNDER FIRST PACIFIC GROUP SINGAPORE UNDER UNITED INDUSTRIAL CORP AND INDONESIA WHERE SALIM IS THE BIGGEST PRIVATE BUSINESS WITH EXTENSIVE INTERESTS IN CEMENT FOOD BANKING AUTO ASSEMBLY CHEMICALS PROPERTY AND MANY OTHER AREAS ANALYSTS SAY THAT SETTING UP A NEW HOLDING COMPANY WOULD INVOLVE A MAJOR AND PROBABLY COMPLICATED RESTRUCTURING OF THE SALIM GROUP THE GROUP INCLUDES HUNDREDS OF COMPANIES OWNED OR CONTROLLED BY THE FAMILY OF LIEM SIOE LIONG A MAGNATE CLOSE TO PRESIDENT SUHARTO IN 1991 THE GROUP SAID IT HAD MORE THAN 150000 EMPLOYEES AND SALES OF ABOUT 8 BILLION A YEAR BUSINESSMEN BELIEVE VOLUME THIS YEAR TO BE ABOUT 10 BILLION BUSINESSMEN FOLLOWING SALIM GROUP SAY THE SINGAPORE STOCK EXCHANGE IS GETTING THE MOST SERIOUS CONSIDERATION FOR A LISTING MERCHANT BANKER MORGAN GRENFELL ASIA LTD IN SINGAPORE HAS BEEN WORKING WITH THE GROUP ON FUNDRAISING POSSIBILITIES THEY SAID SECURITIES ANALYSTS IN JAKARTA SAID ANY MOVE BY SALIM TO LIST A NEW HOLDING COMPANY OFFSHORE COULD ATTRACT STRONG INTEREST BUT ALSO MAY SPARK SOME CONTROVERSY AT HOME AS HAVE PREVIOUS STEPS BY THE BUSINESS GROUP IN 1989 IT GOT A LISTING FOR PT INDOCEMENT TUNGGAL PRAKARSA AFTER AUTHORITIES WAIVED A RULE THAT A COMPANY BE PROFITABLE DURING THE PREVIOUS TWO YEARS THE ANALYSTS SAID THERE WILL LIKELY BE QUESTIONS WHY SALIM WHICH HAS LISTED SMALL UNITS IN JAKARTA SINCE 1989 ISN'T PUTTING A NEW HOLDING COMPANY ON THE GROWING BOURSE AND THERE MAY BE CRITICISM THAT A FOREIGN LISTING REPRESENTS A MOVE AWAY FROM THE GROUP'S INDONESIAN HOME THE SALIM EXECUTIVE SAID HIS GROUP IS LOOKING OFFSHORE BECAUSE THE JAKARTA STOCK EXCHANGE IS TOO SMALL TO ABSORB AN ISSUE AS LARGE AS SALIM MIGHT MAKE SALIM IS SO BIG AND MARKET CAPITALIZATION HERE ISN'T SO BIG HE SAID ALSO HE SAID ANY CRITICISM ABOUT GOING OVERSEAS WOULD BE UNFAIR BECAUSE THE MONEY RAISED THERE WILL BE BROUGHT BACK TO INDONESIA WHEN WE INVEST OUTSIDE CRITICS CALL IT CAPITAL FLIGHT' THIS WILL BE CAPITAL INFLIGHT HE ASSERTED ANALYSTS SAID THAT HOW SALIM HANDLES A PLAN TO HAVE ITS INDOFOOD GROUP GET A SEPARATE LISTING IN JAKARTA IN EARLY 1994 WILL HAVE A BEARING ON HOW THE PLAN FOR A NEW HOLDING COMPANY PROCEEDS THERE IS CURRENTLY A SNAG IN THE INDOFOOD PLANS AND IT ISN'T CLEAR HOW IT WILL BE RESOLVED 9312170082 931217 FED TO DEBATE KEEPING TRANSCRIPTS OF MEETINGS WASHINGTON FEDERAL RESERVE OFFICIALS PLAN A SPECIAL MEETING NEXT WEEK TO TRY TO DECIDE WHETHER TO CONTINUE TO KEEP TRANSCRIPTS OF THEIR DELIBERATIONS ON INTEREST RATES AND IF THEY DO UNDER WHAT CONDITIONS TO MAKE THEM PUBLIC MEANWHILE FED CHAIRMAN ALAN GREENSPAN IN AN UNCHARACTERISTICALLY HARSH LETTER TO CHAIRMAN HENRY GONZALEZ OF THE HOUSE BANKING COMMITTEE ACCUSED THE TEXAS DEMOCRAT OF MAKING INACCURATE INEXPLICABLE AND DISTRESSING COMMENTS ON THE TRANSCRIPT CONTROVERSY MR GREENSPAN DISCLOSED IN OCTOBER THAT THE FED MADE TRANSCRIPTS OF ITS MEETINGS AND AFTER QUESTIONING BY THE COMMITTEE HE ACKNOWLEDGED THAT THE FED STILL HAS TRANSCRIPTS OF MEETINGS GOING BACK TO 1976 MR GREENSPAN'S LETTER RELEASED BY THE FED WAS APPARENTLY PROMPTED BY AN ARTICLE IN AMERICAN BANKER IN WHICH MR GONZALEZ WAS QUOTED AS ACCUSING THE FED OF LYING MR GREENSPAN SAID HE HAD UNSUCCESSFULLY TRIED TO ARRANGE A MEETING WITH MR GONZALEZ MR GONZALEZ HADN'T ANY IMMEDIATE RESPONSE THE FED'S OPEN MARKET COMMITTEE WHICH MAKES INTERESTRATE POLICY IS TO MEET MONDAY AND TUESDAY PREVIOUSLY IT HAD PLANNED TO MEET ONLY ON TUESDAY THE EXTRA DAY WAS ADDED BECAUSE THE SEVEN FED GOVERNORS AND PRESIDENTS OF THE 12 DISTRICT BANKS WEREN'T ABLE TO DECIDE WHAT TO DO ABOUT TRANSCRIPTS IN THE FUTURE FED OFFICIALS HAVE AGREED TO RELEASE EDITED TRANSCRIPTS OF PAST MEETINGS AFTER A FIVEYEAR LAG 9312170081 931217 GM SETTLEMENT IS CLEARED IN SUIT ON PICKUP TRUCKS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL JUDGE IN PHILADELPHIA APPROVED A CLASSACTION SETTLEMENT THAT REQUIRES GENERAL MOTORS CORP TO GIVE AS MUCH AS 6 BILLION IN COUPONS TO OWNERS OF GM PICKUPS WITH SIDEMOUNTED GASOLINE TANKS THE DECISION COVERS PICKUP OWNERS IN 49 STATES WHO ARE TO BE OFFERED 1000 COUPONS TOWARD THE PURCHASE OF A NEW GM TRUCK THE SETTLEMENT WAS PREVIOUSLY APPROVED BY A TEXAS COURT IN BOTH CASES TRUCK OWNERS CHARGED THAT THE SIDEMOUNTED TANKS MADE THE TRUCKS DANGEROUS APPEALS ON BEHALF OF SOME TRUCK OWNERS ARE EXPECTED TO BE FILED IN BOTH CASES ANALYSTS SAID THE SETTLEMENT WILL BOOST GM'S EARNINGS BY CREATING MORE SALES OF HIGHLY PROFITABLE TRUCKS NEWS OF THE PHILADELPHIA DECISION CAME AFTER THE CLOSE OF TRADING IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE GM SHARES CLOSED AT 5475 UP 125 CENTS SEPARATELY A NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION STUDY RELEASED THIS WEEK DISPUTES GM'S CLAIM THAT DRIVER BEHAVIOR AND OWNER DEMOGRAPHICS ALONE COULD ACCOUNT FOR THE SAFETY PROBLEMS ASSOCIATED WITH THE SAME TRUCKS BUT THE STUDY DID FIND THAT SUCH DIFFERENCES MIGHT CONTRIBUTE TO THE FACT THAT THE 19731987 GM PICKUPS WERE INVOLVED IN MORE FIERY FATAL ACCIDENTS THAN WERE COMPARABLE FORD MOTOR CO TRUCKS IN APRIL NHTSA ASKED GM TO RECALL THE PICKUPS BECAUSE IT BELIEVES SIDEMOUNTED GAS TANKS ARE EASILY PUNCTURED WHEN THE TRUCKS ARE SIDESWIPED CAUSING FIRES GM SAID IT WAS VERY PLEASED WITH THE PHILADEPHIA COURT'S RULING ON THE CLASSACTION SETTLEMENT US DISTRICT JUDGE WILLIAM H YOHN JR REJECTED SUGGESTIONS FROM SAFETY CRITICS THAT GM BE FORCED TO RETROFIT THE PICKUPS NONE OF THE OBJECTORS TO THE SETTLEMENT JUDGE YOHN FOUND HAS BEEN ABLE TO COME FORTH WITH A PRACTICAL AND SAFE MODIFICATION BECAUSE THE COUPONS ARE LIKELY TO BE POPULAR WITH TRUCK OWNERS THE JUDGE'S RULING COULD REDUCE PRESSURE ON THE FEDERAL GOVERNMENT TO ORDER A RECALL SECRETARY OF TRANSPORTATION FEDERICO PENA IS REVIEWING WHETHER A RECALL SHOULD BE ORDERED PEOPLE CLOSE TO THE INVESTIGATION HAVE SAID THE SECRETARY IS SEEKING A COMPROMISE GM HAS ARGUED THAT THE FEDERAL SAFETY AGENCY'S ANALYSIS OF ITS TRUCKS WAS FLAWED IN PART BECAUSE THE AGENCY FAILED TO CONSIDER THE DEMOGRAPHICS OF TRUCK OWNERS GM SAYS ITS PICKUPS HAVE A DISPROPORTIONATE SHARE OF YOUNG OWNERS WHO ARE INCLINED TO TAKE SUCH RISKS AS DRINKING AND SPEEDING SUSAN PARTYKA A NHTSA RESEARCHER ANALYZED FEDERAL FATALACCIDENT REPORTS AND FOUND THAT 28 OF GM DRIVERS WERE UNDER THE AGE OF 25 WHILE ONLY 23 OF THE FORD DRIVERS WERE SHE ALSO FOUND THAT 47 OF GM DRIVERS WERE REPORTED TO HAVE BEEN DRINKING COMPARED WITH 42 OF THE FORD DRIVERS BUT THE STUDY WHICH WAS REPORTED IN THE DETROIT NEWS ALSO FOUND THAT EVEN WHEN ONLY OLDER DRIVERS OR NONDRINKERS ARE EXAMINED THE GM PICKUPS STILL HAD SIGNIFICANTLY WORSE ACCIDENT RATES THAN FORD PICKUPS DID OVERALL GM PICKUPS ARE MORE THAN TWICE AS LIKELY TO BE INVOLVED IN FIERY FATAL ACCIDENTS THAN FORD PICKUPS THE RATIO WAS ALMOST THE SAME WHEN LOOKING AT ACCIDENTS INVOLVING NONDRINKERS AND DRIVERS FROM 25 TO 44 YEARS OLD MS PARTYKA FOUND 9312170080 931217 MARKETING & MEDIA DOUBLEDAY PUBLISHING SIGNS TWOBOOK DEAL WITH PROF ANITA HILL NEW YORK DOUBLEDAY PUBLISHING SAID IT SIGNED A TWOBOOK AGREEMENT WITH ANITA F HILL THE LAW PROFESSOR WHO ACCUSED CLARENCE THOMAS OF SEXUAL HARRASSMENT DURING HIS CONFIRMATION HEARINGS FOR THE US SUPREME COURT THE AGREEMENT COVERS WORLDWIDE RIGHTS FOR HARDCOVER AND PAPERBACK EDITIONS BUT TERMS WEREN'T DISCLOSED DOUBLEDAY A UNIT OF BERTELSMANN AG'S BANTAM DOUBLEDAY DELL PUBLISHING GROUP SAID THE FIRST BOOK DUE IN 1995 WILL BE MS HILL'S AUTOBIOGRAPHY THE SECOND BOOK WILL COVER THE HISTORICAL ROOTS OF SEXUAL HARRASSMENT THE MAGNITUDE OF THE PRESENT PROBLEM AND THE POSSIBLE REMEDIES MS HILL SAID IN A STATEMENT MS HILL SAID SHE HADN'T WANTED TO WRITE A BOOK AFTER HER SENATE TESTIMONY BUT CHANGED HER MIND AFTER RECEIVING THOUSANDS OF LETTERS FROM PEOPLE WHO URGED HER TO SHARE HER VIEWS THERE WAS A LOWKEY AUCTION FOR THE BOOK CONTRACT INVOLVING SEVERAL PUBLISHERS AND THE ADVANCE AGAINST ROYALTIES IS BELIEVED TO BE SUBSTANTIAL MS HILL SAID THAT MUCH OF HER ROYALTIES WOULD BE GIVEN TO NINE CHARITIES INCLUDING SEVERAL BAPTIST CHURCHES THREE LAW SCHOOLS AND THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND STEPHEN RUBIN DOUBLEDAY'S PUBLISHER SAID MS HILL PLANS TO WRITE THE BOOKS HERSELF WE'RE THRILLED TO HAVE HER HE SAID WE THINK THE BOOKS WILL HAVE IMMEDIATE NEWS APPEAL BUT ALSO BE ENDURING BOOKS THAT WILL SELL FOR YEARS TO COME 9312170079 931217 GENENTECH BACKS 1993 PROFIT FORECAST PREDICTING MORE THAN DOUBLE 1992 NET BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL GENENTECH INC WILL MORE THAN DOUBLE ITS PROFIT OVER LAST YEAR'S DEPRESSED PERFORMANCE ACCORDING TO WALL STREET FORECASTS THE BIOTECH COMPANY'S PRESIDENT AND CHIEF EXECUTIVE G KIRK RAAB DEEMS THE ANALYSTS ABSOLUTELY REASONABLE IN PREDICTING 1993 PROFIT OF 43 CENTS A SHARE TO 52 CENTS A SHARE THAT INDICATES NET INCOME OF BETWEEN 50 MILLION AND 61 MILLION FOR 1993 OR TWO TO THREE TIMES THE COMPANY'S 1992 PROFIT OF 208 MILLION OR 18 CENTS A SHARE THERE MAY SOON BE GOOD NEWS ON THE REGULATORY FRONT TOO GENENTECH OF SOUTH SAN FRANCISCO CALIF EXPECTS TO RECEIVE WORD SHORTLY THAT THE EUROPEAN COMMUNITY REGULATORS HAVE RECOMMENDED THAT EC COUNTRIES APPROVE PULMOZYME ITS CYSTIC FIBROSIS DRUG FOR MARKET WHILE THE US FOOD AND DRUG ADMINISTRATION HAS YET TO ACT ON PULMOZYME MR RAAB ADDS I HOPE FOR A CHRISTMAS PRESENT FROM FDA BUT I DON'T KNOW PULMOZYME WAS RECOMMENDED FOR APPROVAL BY AN FDA ADVISORY PANEL EARLIER THIS YEAR GENENTECH'S 1993 PERFORMANCE WAS DRIVEN BY GROWTH OF ITS HEART DRUG ACTIVASE OR TPA WHICH THE COMPANY EXPECTS TO REACH ABOUT 235 MILLION IN SALES IN 1993 UP FROM 182 MILLION IN 1992 LAST SPRING A STUDY SUGGESTED PATIENTS ON ACTIVASE EXPERIENCED A 1 SURVIVAL EDGE OVER THOSE GIVEN A CHEAPER DRUG STREPTOKINASE THAT DATA HELPED ACTIVASE RECLAIM A TWOTHIRDS MARKET SHARE AFTER A DIP WHICH HELPED DRAG DOWN LAST YEAR'S PERFORMANCE ALSO BOOSTING GENENTECH'S RESULTS WERE SALES OF ITS SYNTHETIC HUMANGROWTH HORMONE PROTROPIN WHICH ARE EXPECTED TO TOTAL ABOUT 215 MILLION FOR 1993 UP FROM 206 MILLION IN 1992 THE DRUG IS USED TO TREAT PEOPLE WITH GROWTH PROBLEMS DUE TO DEFICIENCY OF THE NATURAL HORMONE MADE BY THE PITUITARY GLAND SANGUINE NEWS ON THE SALES FRONT HAS HELPED DRIVE UP GENENTECH'S STOCK PRICE INTO THE HIGH 40'S IN RECENT DAYS UP ABOUT 55 FROM THE PAST YEAR'S LOW STILL UNCERTAIN IS WHETHER ITS SWISS PARENT ROCHE HOLDING LTD WILL EXERCISE AN OPTION TO BOOST ITS 63 STAKE NEVERTHELESS GENENTECH ISN'T STINTING ON INVESTMENT IN ITS FUTURE THE COMPANY PLANS TO PLOW ABOUT 305 MILLION BACK INTO RESEARCH AND DEVELOPMENT IN 1994 UP FROM JUST UNDER 300 MILLION IN 1993 CAPITAL EXPENDITURES ARE EXPECTED TO RISE TO ABOUT 120 MILLION IN 1994 FROM ABOUT 95 MILLION IN 1993 THERE IS A SOLID ROAD MAP IN PLACE FOR GENENTECH'S FUTURE MR RAAB SAID IN AN INTERVIEW BASED ON IMPORTANT NEW PRODUCTS THAT FIT IN WITH CHANGING HEALTHCARE DELIVERY AND THAT WILL PROVIDE SIGNIFICANT EARNINGS GROWTH IN THE FUTURE IT ISN'T THAT GENENTECH GOT LUCKY WITH ONE OR TWO PRODUCTS HE ADDED BUT THERE'S A REAL PLAN IN PLACE IN A MEETING YESTERDAY WITH NEW YORK SECURITIES ANALYSTS GENENTECH OUTLINED PROGRESS IN A NUMBER OF NEW PRODUCTS IN ITS RESEARCH AND DEVELOPMENT PIPELINE GENENTECH ALSO DISCLOSED ITS WORK ON SOCALLED KNOCKOUT MICE IN WHICH A SPECIFIC GENE IS INACTIVATED OR KNOCKED OUT TO CREATE A STRAIN OF MICE THAT CAN SERVE AS RESEARCH MODELS OF HUMAN DISEASES ARTHUR D LEVINSON SENIOR VICE PRESIDENT OF RESEARCH AND DEVELOPMENT SAID IN AN INTERVIEW PRIOR TO THAT MEETING THAT GENENTECH IS MAKING STRIDES IN ALL FOUR OF ITS CORE MEDICAL PRODUCT AREAS CARDIOVASCULAR IMMUNOLOGY ENDOCRINOLOGY AND NEUROBIOLOGY BUOYED BY DATA SHOWING EARLY RESTORATION OF BLOOD FLOW HELPS SAVE HEARTATTACK VICTIMS DR LEVINSON SAID GENENTECH IS WORKING ON A SECONDGENERATION TPA DESIGNED TO HOME IN MORE SPECIFICALLY ON THE BLOOD CLOT THE COMPANY SAYS IT HOPES TO BEGIN HUMAN CLINICAL TRIALS IN 1994 IN IMMUNOLOGY GENENTECH HAS DESIGNED TWO NEW ANTIBODIES ONE TO SUPPRESS ORGANTRANSPLANT REJECTION AND ANOTHER TO TREAT SHOCK FOLLOWING TRAUMATIC INJURY THE PRODUCT FOR TRANSPLANT REJECTION KNOWN AS ANTICD11 HAS ENABLED MICE TO ACCEPT TRANSPLANTED HEARTS FOR LONG PERIODS WITHOUT RESULTING IN GENERALIZED IMMUNE SUPPRESSION FOUND WITH CURRENTLY USED DRUGS THERE ARE FEW THINGS I'VE BEEN QUITE AS EXCITED ABOUT DR LEVINSON SAID OF THE TRANSPLANT DRUG THE PRODUCT FOR TRAUMATIC SHOCK KNOWN AS ANTICD18 IS DESIGNED TO MUTE THE ACTION OF CERTAIN WHITE BLOOD CELLS CALLED NEUTROPHILS WHICH BECOME ACTIVATED FOLLOWING TRAUMATIC INJURY CAUSING CAPILLARIES TO LEAK FLUID AND TRIGGERING TISSUE DAMAGE IN THE FIELD OF CANCER GENENTECH IS TAKING AIM AT THE RAS ONCOGENE DR LEVINSON SAID RAS MAY BE INVOLVED IN AT LEAST A QUARTER OF ALL HUMAN TUMORS INCLUDING 90 OF CANCERS OF THE PANCREAS ONE OF THE DEADLIEST AND LEAST TREATABLE OF CANCERS GENENTECH SCIENTISTS WORKING IN COLLABORATION WITH MICHAEL BROWN AND JOSEPH GOLDSTEIN OF THE UNIVERSITY OF TEXAS HAVE DEVELOPED A DRUG TO INHIBIT A KEY ENZYME NEEDED BY RAS TO SIGNAL THE WILD AND UNRULY CELL GROWTH THAT BECOMES A TUMOR IF WE CAN DEVELOP A MOLECULE TO INHIBIT RAS THAT ISN'T TOXIC IT'LL BE AN IMPORTANT DRUG DR LEVINSON SAID 9312170078 931217 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CORNING INC AN OFFERING OF ABOUT 67 MILLION COMMON SHARES CYPROS PHARMACEUTICAL CORP AN OFFERING OF 625000 CLASS B WARRANTS AND AS MANY AS 843750 COMMON SHARES LICON INTERNATIONAL INC AN OFFERING OF 1511790 COMMON SHARES UNDERLYING ITS 1991 WARRANT 1511790 REDEEMABLE 1993 A COMMON STOCK PURCHASE WARRANTS AND 1511790 REDEEMABLE 1993 B COMMON STOCK PURCHASE WARRANTS MERRILL LYNCH & CO A SHELF OFFERING OF UP TO 300 MILLION OF DEBT SECURITIES AND WARRANTS NATIONAL INSURANCE GROUP AN OFFERING OF ONE MILLION COMMON SHARES AT 13 A SHARE VIA CHICAGO CORP AND VOLPE WELTY & CO PANHANDLE EASTERN PIPE LINE CO A UNIT OF PANHANDLE EASTERN CORP A SHELF OFFERING FOR UP TO 200 MILLION OF DEBT SECURITIES RIGGS NATIONAL CORP A SHELF OFFERING FOR UP TO 125 MILLION OF SUBORDINATED DEBT SECURITIES SOUTHERN UNION CO A SHELF OFFERING OF 475 MILLION OF UNSECURED SENIOR DEBT VIA MERRILL LYNCH & CO WEBCO INDUSTRIES INC AN INITIAL OFFERING OF 25 MILLION COMMON SHARES VIA KIDDER PEABODY & CO 9312170077 931217 BUSINESS BRIEF DOUBLETREE HOTELS CORP CHAIN'S MERGER COMPLETED WITH GUEST QUARTERS HOTELS DOUBLETREE HOTELS CORP AND GUEST QUARTERS HOTELS PARTNERSHIP SAID THEY COMPLETED THEIR MERGER FORMING ONE OF THE NATION'S LARGEST LODGING CHAINS WITH 96 HOTELS AND 24000 ROOMS TERMS WEREN'T DISCLOSED THE COMBINED COMPANY PRIVATELY OWNED AND BASED IN PHOENIX IS TAKING THE DOUBLETREE HOTELS NAME THE DOUBLETREE AND GUEST QUARTERS BRAND NAMES WILL BE RETAINED THE NEW COMPANY IS OWNED BY A PARTNERSHIP THAT INCLUDES CANADIAN PACIFIC LTD MONTREAL METROPOLITAN LIFE INSURANCE CO NEW YORK GENERAL ELECTRIC INVESTMENTS A UNIT OF GENERAL ELECTRIC CO FAIRFIELD CONN PETER UEBERROTH THE FORMER COMMISSIONER OF MAJOR LEAGUE BASEBALL AND RICHARD FERRIS THE FORMER CHAIRMAN OF UNITED AIRLINES A UNIT OF UAL CORP MR UEBERROTH AND MR FERRIS ARE COCHAIRMAN OF THE PARTNERSHIP 9312170076 931217 BUSINESS BRIEF WINNEBAGO INDUSTRIES INC LOSS IS REPORTED FOR QUARTER DUE TO ACCOUNTING CHANGE WINNEBAGO INDUSTRIES INC FOREST CITY IOWA REPORTED A LOSS OF 167 MILLION OR 66 CENTS A SHARE FOR ITS FISCAL FIRST QUARTER ENDED NOV 27 REFLECTING A CHARGE OF 204 MILLION FROM AN ACCOUNTING CHANGE RELATING TO POSTRETIREMENT BENEFITS WITHOUT THE CHARGE EARNINGS FOR THE MAKER OF MOTOR HOMES JUMPED TO 37 MILLION OR 15 CENTS A SHARE FROM 11 MILLION OR FOUR CENTS A SHARE A YEAR EARLIER REFLECTING A STRONG VOLUME INCREASE IN THE MOTOR HOME INDUSTRY OVERALL AND AN INCREASE IN WINNEBAGO'S MARKET SHARE THE COMPANY ALSO SAID ITS CYCLESAT INC SUBSIDIARY HAD ITS FIRST PROFITABLE QUARTER EVER DURING THE QUARTER THE COMPANY SAID OVERALL WINNEBAGO MOTOR HOME SHIPMENTS ROSE 20 WINNEBAGO ANNOUNCED THAT PRODUCTION WILL BEGIN IN THE THIRD QUARTER ON A FUELEFFICIENT FRONTWHEELDRIVE MOTOR HOME CALLED THE RIATTA AND A VOLKSWAGEN EUROVAN CAMPER FOR SALE THROUGH CERTAIN VW RETAILERS 9312170075 931217 BUSINESS BRIEF TANDY CORP COMPANY COMPLETES SALE OF CERTAIN MEMTEK ASSETS TANDY CORP SAID IT HAD COMPLETED ITS PREVIOUSLY ANNOUNCED SALE OF CERTAIN ASSETS OF ITS MEMTEK PRODUCTS DIVISION TO HONG KONGBASED HANNY MAGNETICS LTD FOR ABOUT 64 MILLION TANDY SAID HANNY ELECTED TO PAY CASH SO THE PAYMENT DID NOT INCLUDE A NOTE AS HAD BEEN EXPECTED WHEN THE TRANSACTION WAS ANNOUNCED NOV 11 TANDY A CONSUMER ELECTRONICS RETAILER BASED IN FORT WORTH TEXAS SAID IT RETAINED ABOUT 60 MILLION IN ACCOUNTS RECEIVABLE AS REPORTED THE SALE INCLUDES THE MEMOREX TRADEMARK LICENSE AGREEMENT COVERING THE MANUFACTURE AND SALE OF MEMOREX AUDIO AND VIDEO TAPE AND CERTAIN CONSUMER ELECTRONICS PRODUCTS 9312170073 931217 YOUR MONEY MATTERS WEEKEND REPORT TAPPING YOUR RETIREMENT ASSETS FOR RETIREES PENSION DECISIONS CAN BE CRUCIAL BY DEBORAH LOHSE AND ELLEN E SCHULTZ STAFF REPORTERS OF THE WALL STREET JOURNAL HANG UP THE GOLF CLUBS PARK THE WINNEBAGO AND FORGET ABOUT THE CRUISE TO BERMUDA THESE DAYS IF YOU'RE AT OR NEARING RETIREMENT YOU MIGHT BE BETTER OFF SIGNING UP FOR COURSES IN ADVANCED ACTUARIAL SCIENCES AND FINANCE AT THE WHARTON SCHOOL TO HELP YOU MAKE ALL THE FINANCIAL DECISIONS THAT FACE THE TYPICAL CORPORATE RETIREE IN THE PAST A RETIREE'S INCOME MIGHT HAVE CONSISTED MOSTLY OF A MONTHLY PENSION CHECK AND SOCIAL SECURITY BUT TODAY IT ISN'T UNUSUAL FOR SOMEONE TO HAVE A COUPLE OF PENSIONS A 401K PLAN WITH THE MOSTRECENT EMPLOYER 401K MONEY FROM A PREVIOUS EMPLOYER THAT HAS BEEN ROLLED INTO AN INDIVIDUAL RETIREMENT ACCOUNT A COUPLE OF OTHER IRAS PERSONAL SAVINGS ASSORTED ANNUITIES SOCIAL SECURITY AND PERHAPS SOME EXECUTIVE DEFERRED COMPENSATION AND THAT DOESN'T EVEN INCLUDE ANY RETIREMENT PLANS FOR THE RETIREE'S SPOUSE DECIDING HOW TO HANDLE ALL THAT MONEY CAN SEEM LIKE AN OVERWHELMING BURDEN INDEED ARRANGING FOR A LIVABLE STREAM OF INCOME CONTINUED SAVINGS FOR LATER YEARS AND SIDESTEPPING INTERNAL REVENUE SERVICE PENALTIES MAY TAKE MONTHS OF HARD THINKING RETIREES ARE USUALLY BEING ASKED TO MAKE IRREVOCABLE DECISIONS ABOUT PROBABLY THE MOST MONEY THEY'VE EVER HANDLED IN THEIR LIVES SAYS PAUL WESTBROOK A RETIREMENT PLANNER IN WATCHUNG NJ THE CONSEQUENCES OF CHOOSING WRONG CAN BE COSTLY RETIREES FACE A STEEP PENALTY IF THEY DON'T TAP CERTAIN ASSETS BY THE TIME THEY ENTER THEIR 70S WHILE DRAWING DOWN TOO MUCH INCOME MAY JEOPARDIZE THEIR FUTURE STANDARD OF LIVING IF THEY DECIDE TO WITHDRAW ONE OR MORE PENSIONS IN ONE FELL SWOOP THEY COULD OVERPAY THE TAXES THAT WILL BE DUE BY MISSING ONETIME TAX BREAKS THERE ARE OTHER PITFALLS AS WELL THE FIRST STEP TO AVOIDING PROBLEMS AND MAXIMIZING RETIREMENT INCOME IS TO GET AN OVERVIEW OF ALL OF YOUR RETIREMENT ASSETS AND DETERMINE WHETHER SOME SOURCES SHOULD BE TAPPED BEFORE OTHERS EXPERTS SAY TRADITIONAL PENSIONS AND DEFERREDCOMPENSATION PLANS FREQUENTLY BEGIN PAYING OUT WHEN YOU RETIRE WHETHER YOU WANT TO RECEIVE THE MONEY AT THAT TIME OR NOT IN CONTRAST PLANS SUCH AS 401KS AND IRAS OFTEN CAN BE LEFT TO GROW TAXDEFERRED UNTIL LATER WHEN YOU MIGHT NEED THEM MORE CONSIDER GEORGE SAWYER A 60YEAROLD RETIRED EXECUTIVE FROM A LARGE PETROLEUM COMPANY MR SAWYER RECENTLY HAD TO DECIDE WHAT TO DO WITH EIGHT POTS OF RETIREMENT MONEY HE HAD BUILT UP OVER 38 YEARS INCLUDING A 401K A PENSION A SUPPLEMENTAL PENSION FOR EXECUTIVES TWO IRAS HE HAD FINANCED ON HIS OWN AND SOME DEFERREDBONUS PAY HIS COMPANY HAD ARRANGED TO GIVE HIM WHEN HE RETIRED AFTER LOOKING OVER HIS VARIOUS PLANS WITH DAVID KAISER HIS RETIREMENT ADVISER AT AYCO CORP IN FLORHAM PARK NJ MR SAWYER FOUND HE WAS REQUIRED TO BEGIN RECEIVING DISTRIBUTIONS FROM HIS DEFERREDCOMPENSATION PLAN AND HIS EXECUTIVESUPPLEMENTAL PLAN AS MR SAWYER AND HIS WIFE SHIRLEY 58 DIDN'T NEED THE INCOME FROM ALL EIGHT SOURCES TO LIVE ON HE DECIDED TO CONTINUE TO LEAVE HIS 401K AND IRAS UNTAPPED AND GROWING FINANCIAL PLANNERS SAY MR SAWYER IS DOING THE RIGHT THING WHENEVER POSSIBLE DELAY TAKING TAXDEFERRED INCOME SAYS MR WESTBROOK THAT WAY THE MONEY CONTINUES TO COMPOUND WITHOUT BEING HACKED BY TAXES EACH YEAR RETIREES CAN POSTPONE TAKING TAXDEFERRED MONEY ONLY SO LONG HOWEVER THEY MUST BEGIN TAKING MINIMUM DISTRIBUTIONS FROM ANY IRAS 401KS OR OTHER QUALIFIED PLANS AT AGE 70 1/2 IF THEY DON'T THE IRS SLAPS ON AN EXTRA TAX EQUAL TO 50 OF THE AMOUNT THEY SHOULD HAVE WITHDRAWN THE WEALTHIEST RETIREES HOWEVER MAY WANT TO MAKE WITHDRAWALS EVEN EARLIER THE REASON IF A RETIREE'S QUALIFIED ACCOUNTS GROW TO THE POINT WHERE THEY COLLECTIVELY GENERATE INCOME OF MORE THAN 150000 A YEAR THE IRS WILL COLLECT AN ADDITIONAL 15 PENALTY ON THE EXCESS ABOVE 150000 FOR MARRIED COUPLES EACH SPOUSE CAN RECEIVE AS MUCH AS 150000 BEFORE FACING A PENALTY MR WESTBROOK SAYS THIS EXTRA TAX TYPICALLY HITS ONLY THOSE WITH MULTIMILLIONDOLLAR PENSIONS BESIDES MAXIMIZING TAXDEFERRED GROWTH AND AVOIDING IRS PENALTIES THERE ARE OTHER CRUCIAL CHOICES YOU MUST MAKE AT RETIREMENT THAT CAN HAVE A SIGNIFICANT IMPACT ON YOUR STANDARD OF LIVING AND YOUR TAX BILL FOR INSTANCE MANY PEOPLE CAN CHOOSE WHETHER TO TAKE RETIREMENT MONEY AS A LUMP SUM OR AN ANNUITY THOSE WITH THIS CHOICE INCLUDE THOSE WITH TRADITIONAL PENSIONS PROFITSHARING PLANS AND 401KS PEOPLE WHO TAKE A LUMP SUM WILL OWE TAXES ON THE WITHDRAWAL WHICH CAN BE HUNDREDS OF THOUSANDS OF DOLLARS ONE WAY TO DELAY SUCH TAXES IS TO TRANSFER THE MONEY DIRECTLY INTO A TAXDEFERRED IRA A KEY EXCEPTION IS THAT NONQUALIFIED PENSIONS FOR MANY TOP EXECUTIVES CANNOT BE ROLLED INTO IRAS THOSE WHO ANTICIPATE SPENDING SOME OR ALL OF THE PAYOUT WITHIN A FEW YEARS HOWEVER CAN REDUCE THEIR TAX BITE ON WITHDRAWALS FROM CERTAIN PLANS BY USING SPECIAL TAX RULES KNOWN AS FIVEYEAR OR 10YEAR FORWARD AVERAGING ONLY PEOPLE BORN BEFORE 1936 CAN CURRENTLY USE FORWARD AVERAGING ESSENTIALLY THE MONEY IS TAXED AS IF THE RECIPIENT HAD RECEIVED IT OVER FIVE OR 10 YEARS THIS OFTEN HAS THE EFFECT OF KEEPING THE TOTAL TAX ON THE PENSION BELOW A RETIREE'S REGULAR INCOMETAX BRACKETS BE CAREFUL THOUGH TAXPAYERS CAN'T FORWARD AVERAGE IN THE SAME YEAR THEY ROLL OTHER MONEY INTO AN IRA IF THEY DO THEY COULD TRIGGER TAXES ON THE MONEY ROLLED OVER ONCE YOU USE FORWARD AVERAGING YOU CAN'T USE IT ON LATER PAYOUTS ADVISERS NOTE AND TO GET THE FAVORABLE TAX TREATMENT THE MONEY CAN'T BE IN AN IRA SINCE WITHDRAWALS FROM IRAS DON'T QUALIFY FOR FORWARD AVERAGING FURTHERMORE RETIREES CAN'T USE FAVORABLE AVERAGING UNLESS THEY WITHDRAW THE WHOLE BALANCE OF THE ACCOUNT IT'S ALL OR NOTHING SAYS DAVID KAHN A PARTNER AT ACCOUNTANTS GOLDSTEIN GOLUB KESSLER & CO IN NEW YORK PEOPLE WHO DECIDE TO TAKE THE MONEY IN THE FORM OF AN ANNUITY A STREAM OF PAYMENTS OVER THE REST OF THE RETIREE'S LIFE ALSO HAVE SOME BASIC CHOICES TO MAKE AMONG THEM WHETHER TO GET A LARGER PAYOUT THAT SPANS ONLY THEIR LIFETIME OR A SMALLER PAYOUT THAT STRETCHES OVER THE LIFE OF THEIR SPOUSE AS WELL YOU CAN ALSO RECEIVE THE MONEY IN INSTALLMENTS WHICH MEANS THAT YOU GET THE MONEY IN YOUR PLAN PAID OUT TO YOU IN ROUGHLY EQUAL PAYMENTS FOR A SPECIFIED NUMBER OF YEARS SUCH AS 10 OR 15 AS COMPLICATED AS THE PROCESS IS HOWEVER RETIREMENTPLANNING ADVISERS HAVE SOME TIPS ABOUT HOW TO SIMPLIFY THE PLANNING PROCESS TO BEGIN WITH THEY SAY WRITE UP A LIST OF ALL YOUR RETIREMENT ASSETS AND THE DATES ON WHICH YOU MUST BEGIN TAKING DISTRIBUTIONS NEXT CALCULATE THE STREAMS OF INCOME YOU CAN EXPECT FROM EACH IF THIS EXCEEDS YOUR ANTICIPATED EXPENSES YOU'LL HAVE TO DECIDE WHICH PLANS TO LEAVE UNTOUCHED AND WHAT INVESTMENTS WILL HELP YOUR NEST EGG WIN THE RACE WITH INFLATION AND TAXES EVEN IF YOU HAVE A GOOD SENSE OF WHERE YOUR MONEY IS GOING TO COME FROM IN YOUR GOLDEN YEARS THIS IS THE TIME TO COORDINATE ALL YOUR PLANS AS DECISIONS YOU MAKE NOW CAN ERASE OTHER OPTIONS IN THE FUTURE YOU MAY WANT TO CONTACT YOUR HUMANRESOURCES DEPARTMENT SIX MONTHS BEFORE RETIREMENT TO ASSESS YOUR OPTIONS ESPECIALLY IF YOU HAVE NONQUALIFIED RETIREMENT PLANS ADVISES RAY CAIRNS 60 WHO RETIRED TWO YEARS AGO AS A SENIOR VICE PRESIDENT AT DU PONT CO IT TAKES TIME TO PLAN THIS PHASE OF YOUR LIFE 9312170072 931217 HEAD OF TAX FIRM INDICTED IN COMPUTER FILING SCHEME BOSTON THE PRESIDENT OF A NATIONAL TAXPREPARATION SERVICE WAS INDICTED IN WHAT PROSECUTORS CALLED A MASSIVE ELECTRONIC FILING FRAUD AND MONEYLAUNDERING SCHEME RICHARD M HERSCH THROUGH HIS COMPANY QUICK TAX DOLLARS INC OF BRYN MAWR PA FILED 431 FALSE TAX RETURNS CLAIMING 11 MILLION IN REFUNDS DURING 1991 AND 1992 FEDERAL OFFICIALS SAID INTERNAL REVENUE SERVICE AGENTS ALSO DISCLOSED SHARPLY HIGHER NUMBERS OF FRAUD CASES USING THE SERVICE'S THREEYEAROLD ELECTRONIC FILING SYSTEM AND VOWED TO STEP UP ENFORCEMENT IN THIS NEW AREA MORE THAN 12 MILLION RETURNS WILL BE FILED ELECTRONICALLY IN 1993 THEY SAID THIS CASE IS ONE OF THE LARGEST ELECTRONICFILING CASES EVER AND IS THE FIRST TIME AN OFFICER OF A LARGE TAXPREPARATION FIRM HAS BEEN PROSECUTED FOR ABUSING THE NEW SYSTEM US ATTORNEY DONALD STERN SAID IT WAS A NATIONAL OPERATION KENNETH CLAUNCH AN IRS CRIMINAL DIVISION CHIEF SAID MR HERSCH USED FICTITIOUS NAMES AND SOCIAL SECURITIY NUMBERS IN THE 1991 TAX SEASON THEN CHANGED HIS APPROACH AFTER THE IRS FIXED ITS SOFTWARE TO STOP SUCH ABUSES IN 1992 HE USED THE NAMES AND SOCIAL SECURITY NUMBERS OF ACTUAL QUICK TAX CLIENTS THEN INFLATED THEIR INCOMES AND CASHED THE REFUND CHECKS HIMSELF MR HERSCH COULDN'T BE REACHED FOR COMMENT MORE THAN 12700 QUESTIONABLE ELECTRONIC RETURNS WERE DETECTED LAST YEAR INVOLVING 336 MILLION IN REFUNDS BUT 225 MILLION OF THE REFUNDS WERE STOPPED BEFORE THEY WERE SENT OUT OFFICIALS SAID 9312170071 931217 REVIEW & OUTLOOK EDITORIAL ASIDES BRUNEAU SNAIL REVISITED FOR THE FIRST TIME A FEDERAL JUDGE HAS REMOVED A SPECIES FROM THE FEDERAL GOVERNMENT'S ENDANGERED SPECIES LIST AT ISSUE WAS THE BRUNEAU HOT SPRINGS SNAIL A TINY CREATURE THE SIZE OF A PENCIL POINT ITS LISTING HAD ITSELF ENDANGERED HUNDREDS OF AGRICULTURAL JOBS IN IDAHO'S BRUNEAU VALLEY THIS WEEK US DISTRICT JUDGE HAROLD RYAN RULED THAT THE SNAIL'S LISTING BY THE US FISH AND WILDLIFE SERVICE WAS ARBITRARY CAPRICIOUS AN ABUSE OF DISCRETION AND OTHERWISE NOT IN ACCORDANCE WITH LAW SOUNDS ABOUT RIGHT TO US THE JUDGE NOTED THAT WASHINGTON HADN'T EVEN ALLOWED THE PUBLIC TO REVIEW THE CONTROVERSIAL SCIENTIFIC STUDY THAT LED TO THE SNAIL'S LISTING SNAIL ADVOCATES VOW TO APPEAL THE RULING THE GOOD NEWS HERE IS THAT PUBLIC AND LEGAL OPINION IS FINALLY SHOWING SOME SKEPTICISM TOWARD THE SAVEATALLCOSTS MENTALITY THAT HAS GUIDED ENFORCEMENT OF THE ENDANGERED SPECIES ACT 9312170070 931217 INTERNATIONAL BUSINESS MACHINES CONCERN WILL NOT PARTICIPATE IN GROUPE BULL CAPITAL BOOST INTERNATIONAL BUSINESS MACHINES CORP CONFIRMED THAT IT WON'T PARTICIPATE IN THE RECAPITALIZATION OF FRENCH STATECONTROLLED COMPUTER MAKER GROUPE BULL IBM'S DECISION FOLLOWS LAST WEEK'S ANNOUNCEMENT BY JAPAN'S NEC CORP WHICH HOLDS 44 OF BULL THAT IT WILL PROVIDE BULL WITH CASH SEVEN BILLION YEN 673 MILLION NEC'S EQUITY STAKE WOULD REMAIN UNCHANGED IBM WHICH HAS AROUND A 57 STAKE IN BULL SAID IBM CHAIRMAIN LOUIS V GERSTNER MADE THE DECISION BECAUSE OTHER FINANCIAL PRIORITIES PREVENT IBM FROM PARTICIPATING IN BULL'S 1993 CAPITAL INCREASE THE US COMPUTER CONCERN SAID IT WOULD CONTINUE TO CONCENTRATE ON ITS INDUSTRIAL PARTNERSHIPS WITH BULL THE FRENCH GOVERNMENT ANNOUNCED IN OCTOBER THAT IT WOULD RECAPITALIZE BULL TO THE TUNE OF SEVEN BILLION FRANCS 119 BILLION IN ADDITION FRANCE TELECOM ANOTHER MINORITY SHAREHOLDER IN BULL WOULD KICK IN 16 BILLION FRANCS 9312170069 931217 BUSINESS BRIEF SOUTHERN NEW ENGLAND TELEPHONE CLEARANCE SOUGHT TO EXPAND TESTING OF VIDEO DIALTONE SOUTHERN NEW ENGLAND TELEPHONE CO SAID IT IS SEEKING APPROVAL FROM REGULATORS TO EXPAND A TRIAL MEANT TO TEST THE DELIVERY OF VIDEO PROGRAMMING OVER TELEPHONE LINES KNOWN AS VIDEO DIALTONE THE LOCAL TELEPHONE COMPANY SAID IT FILED A REQUEST WITH THE FEDERAL COMMUNICATIONS COMMISSION TO EXPAND THE TRIAL TO PROVIDE VIDEODIALTONE SERVICES TO ABOUT 10000 SUBSCRIBERS IN PARTS OF WEST HARTFORD NEW BRITAIN FARMINGTON AND HARTFORD AS WELL AS 10000 SUBSCRIBERS IN OTHER PARTS OF CONNECTICUT UNDER ITS CURRENT VIDEODIALTONE TRIAL THE COMPANY HAS BUILT A NETWORK BUT HASN'T SIGNED ON ANY TEST SUBSCRIBERS THE COMPANY SAID AN EXPANDED TRIAL WILL HELP IT DEVELOP THE TECHNOLOGY ASSESS COSTS AND DETERMINE MARKETING REQUIREMENTS FOR VIDEODIALTONE SERVICES 9312170068 931217 REVIEW & OUTLOOK EDITORIAL EDUCATION REFORM BREAKOUT WHEN THE TEACHERS' UNIONS SPENT AN INCREDIBLE 16 MILLION TO DEFEAT A VOUCHER INITIATIVE IN CALIFORNIA LAST MONTH SOME OBSERVERS THOUGHT THE MOVEMENT WOULD RUN OUT OF STEAM NOT LIKELY REFORMERS ARE COMING AT THE SCHOOLS STATUS QUO FROM EVERY DIRECTION FROM WASHINGTON DC TO MICHIGAN TO PUERTO RICO DRAMATIC EDUCATIONAL REFORM IS BECOMING A REALITY WASHINGTON DC'S SCHOOL SUPERINTENDENT FRANKLIN SMITH HAS JUST ANNOUNCED THAT HE PLANS TO ASK THE LOCAL SCHOOL BOARD TO TURN OVER THE MANAGEMENT OF UP TO 15 STRUGGLING CITY SCHOOLS TO A PRIVATE FIRM EDUCATION ALTERNATIVES INC WHICH HAS BEEN PUT IN CHARGE OF FAILED SCHOOLS IN BALTIMORE AND FLORIDA IS A LEADING CONTENDER THOUGH STILL SADDLED WITH OUTRAGEOUS UNION CONTRACTS THE FIRM HAS BEEN ABLE TO IMPROVE EDUCATIONAL QUALITY BY CUTTING BACK ON NONTEACHING EMPLOYEES IN BALTIMORE THERE IS NOW A COMPUTER FOR EVERY FOUR STUDENTS TEACHERS ARE CAREFULLY EVALUATED ON THE QUALITY OF THEIR INSTRUCTION WASHINGTON DC IS ABOUT THE LAST PLACE YOU'D EXPECT TO MOVE TOWARD EVEN PARTIAL PRIVATIZATION OF EDUCATION DC SCHOOLS NOW SPEND AN ASTONISHING 9300 A YEAR PER PUBLIC SCHOOL PUPIL THEY ALSO HAVE THE NATION'S LOWEST PUPIL/TEACHER RATIO IN THE NATION FOR ALL THAT DC RANKS 49TH IN ITS SAT SCORES ITS DROPOUT RATE IS SO HIGH THAT ONE OF ITS HIGH SCHOOLS RECENTLY HAD A GRADUATING CLASS OF ONLY FOUR SENIORS WE'VE GOT TO CHANGE THE WAY WE DO BUSINESS IN PUBLIC EDUCATION SAYS SUPERINTENDENT SMITH I NEED HELP TO GET ME THERE TIME IS RUNNING OUT OTHER PRESSED SCHOOL SYSTEMS ARE REACHING THE SAME CONCLUSION LAST NIGHT MICHIGAN'S LEGISLATURE WAS DEBATING AN EDUCATIONAL REFORM PACKAGE THAT WOULD ALLOW TEACHERS AND CORPORATIONS TO ESTABLISH CHARTER SCHOOLS TO COMPETE WITH TRADITIONAL PUBLIC SCHOOLS WHILE THEY WOULD BE PUBLICLY ACCOUNTABLE AND COULDN'T CHARGE TUITION THEY WOULD BE FREED FROM BURDENSOME RULES AND WOULD BE GIVEN THE SAME DOLLARS PER PUPIL AS OTHER PUBLIC SCHOOLS THE MINNEAPOLIS SCHOOL BOARD VOTED LAST MONTH TO TRANSFER MANAGEMENT OF EVERY PUBLIC SCHOOL IN THE CITY TO THE PUBLIC STRATEGIES GROUP A PRIVATE FIRM THAT SPECIALIZES IN TURNING AROUND UNRESPONSIVE ORGANIZATIONS ITS PRESIDENT WILL IN EFFECT BECOME THE CITY'S SCHOOL SUPERINTENDENT IN SEVERAL CITIES THAT LACK MINNEAPOLIS' FORWARDLOOKING SCHOOL BOARD BUSINESS LEADERS HAVE DECIDED TO SET UP PRIVATELY FUNDED VOUCHER PROGRAMS TO HELP STRUGGLING INNERCITY STUDENTS AND ALSO DEMONSTRATE THE BENEFITS OF COMPETITION PAT ROONEY THE CHAIRMAN OF GOLDEN RULE INSURANCE CO STARTED THE FIRST PROGRAM IN INDIANAPOLIS IN 1991 IT PROVIDES MORE THAN 1100 STUDENTS WITH SCHOLARSHIPS IN PRIVATE SCHOOLS PAID FOR BY GOLDEN RULE AND OTHER LOCAL COMPANIES A LARGER EFFORT WITH MORE THAN 2300 STUDENTS IS OPERATING IN MILWAUKEE OTHER PROGRAMS HAVE OPENED IN ATLANTA LITTLE ROCK ALBANY NY DENVER PHOENIX SAN ANTONIO AND AUSTIN WASHINGTON DC BEGAN ITS PROGRAM THIS MONTH THE NOTION OF ALLOWING PARENTS TO USE SOME OF THEIR TAXES TO SEND THEIR CHILDREN TO PRIVATE SCHOOLS WHICH LOST IN CALIFORNIA IS ALSO VERY MUCH ALIVE IN ARIZONA BOTH GOVERNOR FIFE SYMINGTON AND THE LEGISLATIVE LEADERSHIP OF BOTH HOUSES SUPPORT A REFORM BILL THAT WILL BE VOTED ON NEXT MONTH IT WOULD ESTABLISH BOTH CHARTER SCHOOLS AND A LARGE PILOT VOUCHER PROGRAM LAST SEPTEMBER PUERTO RICO JOINED MILWAUKEE IN CREATING THE NATION'S SECOND TAXPAYERFUNDED VOUCHER PROGRAM LOWINCOME FAMILIES IN A THIRD OF PUERTO RICO'S SCHOOL DISTRICTS CAN NOW APPLY FOR VOUCHERS WORTH 1500 IN ANY PRIVATE SCHOOL RELIGIOUS OR OTHERWISE BUT GOVERNOR PEDRO ROSSELLO'S REAL GOAL IS TO IMPROVE THE QUALITY OF PUBLIC SCHOOLS HE HAS ALSO ESTABLISHED A SELFGOVERNING CHARTER SCHOOL PROGRAM IT HAS BECOME SO POPULAR THAT SO FAR MORE STUDENTS HAVE TRANSFERRED FROM PRIVATE SCHOOLS INTO PUBLIC CHARTER SCHOOLS THIS SUGGESTS THAT EDUCATIONAL COMPETITION WILL NOT MEAN THE END OF PUBLIC EDUCATION COLUMNIST NEAL PEARCE WHO COVERS LOCAL GOVERNMENT FOR THE NATIONAL JOURNAL SAYS THE DESIRE FOR EDUCATION REFORM IS GROWING NOT SHRINKING THOUGH A VOUCHER OPPONENT HE NOTES THE SCHOOL CHOICE MOVEMENT SEEMS LIKELY AS SCHOOL BOARDS AND BUREAUCRACIES COME UNDER INCREASING FIRE TO SPREAD ACROSS THE COUNTRY AS RAPIDLY AS TERM LIMITS BY NOW THE SHAPE OF THIS ISSUE SHOULD BE CLEAR THE SCHOOL SYSTEMS WITH THE BIGGEST PROBLEMS TEND TO BE IN LARGE CITIES WITH POOR POPULATIONS WHATEVER ARGUMENT THERE IS FOR THE POLITICAL SYSTEM THAT RAN THESE CITIES IT HAS SADDLED THE SCHOOLS AND THE BEST PEOPLE IN THEM WITH TWO THINGS THAT ARE BIG AND BAD BUREAUCRACIES AND UNIONS THEY KEEP PROMISING IMPROVEMENT BUT IT NEVER COMES GRADUALISM HAS FAILED PARENTS ARE OUT OF PATIENCE SLOWLY BUT SURELY IN THE MOST BELEAGUERED SYSTEMS THE PUBLICSCHOOL STATUS QUO IS BEING TIPPED OVER 9312170067 931217 WORLD OIL SUPPLIES GROW DESPITE OPEC'S CEILING HOUSTON WORLD OIL SUPPLIES ARE GROWING DESPITE THE DROP IN OPEC'S OUTPUT AND ITS PLEAS TO OTHER PRODUCERS TO HELP TRIM THE GLUT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES SAID THAT WHILE IT IS PRODUCING CLOSE TO ITS CEILING OF 245 MILLION BARRELS A DAY NONOPEC SUPPLIES ARE RUNNING 40000 BARRELS A DAY HIGHER THAN ESTIMATED THE INTERNATIONAL ENERGY AGENCY PREDICTS NONOPEC SUPPLIES WILL AVERAGE 408 MILLION BARRELS A DAY THROUGH NEXT YEAR'S FIRST QUARTER THE NEW FIGURE IS 400000 BARRELS A DAY HIGHER FOR THE CURRENT QUARTER AND 200000 BARRELS A DAY MORE FOR THE 1994 FIRST QUARTER THAN THE IEA'S FORECAST OF EARLY NOVEMBER AS A RESULT SOME ANALYSTS SAID THE RISE IN OUTPUT ELSEWHERE HAS SUPPLANTED OPEC AS THE CHIEF SUSPECT IN THE WORLD OIL GLUT WHICH HAS DRIVEN PRICES TO FIVEYEAR LOWS BELOW 15 A BARREL THERE SEEMS TO BE NO END TO THE OVERSUPPLY SAID SHAHROKH NIKKHAH LONDONBASED EXECUTIVE VICE PRESIDENT OF REFCO INC CRUDE PRICES FELL AGAIN YESTERDAY ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR JANUARY DELIVERY REACHED A LIFEOFCONTRACT LOW OF 1418 A BARREL IN EARLY FUTURES TRADING IT SETTLED AT 1423 A BARREL DOWN 18 CENTS FOR THE DAY 9312170066 931217 BUSINESS BRIEF CITIZENS UTILITIES CO CALPERS PLANS TO JOIN SUIT CHALLENGING COMPENSATION THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM SAID IT INTENDS TO JOIN A LAWSUIT AGAINST THE DIRECTORS OF CITIZENS UTILITIES CO THAT CHALLENGES THE COMPANY'S COMPENSATION PRACTICES CALPERS THE NATION'S LARGEST PENSION SYSTEM SAID THE COMPANY FAILED TO RESPOND POSITIVELY TO REQUESTS FOR CHANGES IN THE ROLE OF DIRECTORS ESPECIALLY CONCERNING HOW THEY SET THE SALARY FOR LEONARD TOW CHAIRMAN CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER ACCORDING TO THE UTILITY'S PROXY FILING MR TOW'S 1992 COMPENSATION WAS 119 MILLION INCLUDING STOCK AWARDS OF 69 MILLION AN OUTSIDE CALCULATION ESTIMATED MR TOW'S 1992 PAY PACKAGE AT MORE THAN 20 MILLION THE SUIT FILED IN DELAWARE CHANCERY COURT THIS YEAR SEEKS UNSPECIFIED DAMAGES AND CLAIMS DIRECTORS FAILED TO MEET FIDUCIARY DUTY IN SETTING THE SALARY CITIZENS UTILITIES MAINTAINS THE SUIT IS WITHOUT MERIT AND EXPRESSED SURPRISE AT THE PENSION SYSTEM'S PLAN TO JOIN WE HAD THE FEELING DISCUSSIONS WERE PROCEEDING VERY WELL A SPOKESWOMAN SAID 9312170065 931217 INTERNATIONAL BRIEF FUJI PHOTO FILM CO COMPANY SAYS PRETAX PROFIT DROPPED 19 FOR FISCAL YEAR FUJI PHOTO FILM CO SAID CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED OCT 20 TUMBLED 19 TO 13551 BILLION YEN 123 BILLION FROM 16698 BILLION YEN A YEAR EARLIER NET INCOME WAS DOWN 20 TO 6092 BILLION YEN FROM 7570 BILLION YEN ALTHOUGH SALES FELL ONLY 49 TO 1087 TRILLION YEN FROM 1142 TRILLION YEN THE JAPANESE COMPANY SAID PERFORMANCE WOULD IMPROVE IN THE SECOND HALF OF THE CURRENT FISCAL YEAR WHEN THE COMPANY LOOKS FOR A PICKUP IN DOMESTIC DEMAND FOR OFFICE EQUIPMENT BUT UNCONSOLIDATED EARNINGS WILL BE BATTERED BY THE APPRECIATION OF THE YEN WHICH WILL REDUCE RETURNS FROM THE PARENT'S EXPORT SALES FOR THE CURRENT FISCAL YEAR FUJI PREDICTS NET INCOME WILL BE 64 BILLION YEN UP 51 FROM THE PREVIOUS YEAR AN OFFICIAL SAID A LOWER BURDEN OF DEPRECIATION COSTS FROM CAPITAL OUTLAYS ON ITS PLANTS IN THE NETHERLANDS AND THE US WILL MORE THAN OFFSET THE DEBILITATING EFFECTS OF THE YEN'S APPRECIATION HE ALSO CITED SALES COMING FROM PHOTOPROCESSING NETWORKS IN THE US AND CANADA THAT FUJI RECENTLY ACQUIRED 9312170064 931217 INTERNATIONAL BRIEF MITSUBISHI BANK LTD JAPAN FIRM'S PRETAX PROFIT FELL 23 FOR FISCAL FIRST HALF MITSUBISHI BANK LTD SAID CONSOLIDATED PRETAX PROFIT DROPPED 23 IN THE FIRST HALF ENDED SEPT 30 TO 696 BILLION YEN 6338 MILLION FROM 8982 BILLION YEN A YEAR EARLIER THE JAPANESE BANK'S NET INCOME FELL 16 TO 3274 BILLION YEN FROM 3905 BILLION YEN WHILE REVENUE DROPPED 25 TO 1149 TRILLION YEN FROM 1538 TRILLION YEN MEANTIME MITSUBISHI LOWERED ITS EARNINGS FORECAST FOR THE FULL YEAR ENDING MARCH 31 THE BANK NOW EXPECTS TO POST PRETAX PROFIT OF 80 BILLION YEN COMPARED WITH A PREVIOUS PROJECTION OF 100 BILLION YEN NET IS LIKELY TO TOTAL 43 BILLION YEN DOWN 22 FROM A FORECAST OF 55 BILLION YEN MITSUBISHI'S REVISIONS FOLLOW OTHER JAPANESE BIG CITY BANKS WHICH AMID THE SLUGGISH JAPANESE ECONOMY HAVE POSTED POORER EARNINGS 9312170063 931217 BUSINESS BRIEF VLSI TECHNOLOGY INC MICROCHIP MAKER POSTPONES STOCK OFFERING AS PRICE SAGS VLSI TECHNOLOGY INC SAID IT POSTPONED A PLANNED OFFERING OF THREE MILLION COMMON SHARES BECAUSE OF ITS SLUMPING STOCK PRICE AMONG OTHER THINGS THE SAN JOSE CALIF SEMICONDUCTOR MAKER HAS BEEN HURT LATELY BY DELAYS IN ORDERS FROM APPLE COMPUTER INC A MAJOR BUYER OF VLSI CHIPS INVESTOR ANXIETY OVER THE POTENTIAL DILUTIVE EFFECTS OF THE PLANNED STOCK OFFERING ALSO HAS HURT ITS STOCK PRICE RECENTLY SINCE MIDOCTOBER WHEN VLSI ANNOUNCED ITS PLAN TO OFFER NEW SHARES ITS STOCK HAS TUMBLED FROM ABOUT 17 A SHARE TO YESTERDAY'S CLOSE OF 9875 OFF 125 CENTS IN NASDAQ STOCK MARKET TRADING VLSI SAID IT POSTPONED THE OFFERING BECAUSE OF THE SLIDING SHARE PRICE AND THE GENERAL MARKET WEAKNESS OF TECHNOLOGY STOCKS IT DIDN'T SAY WHETHER OR WHEN IT PLANS TO OFFER THE SHARES IN THE FUTURE 9312170062 931217 BUSINESS BRIEF FRUIT OF THE LOOM INC SHARES SKID FOR SECOND DAY AS FIRM LOWERS FORECASTS FRUIT OF THE LOOM INC'S SHARES FELL YESTERDAY FOR THE SECOND STRAIGHT DAY AMID GLOOMY NEWS FROM THE APPAREL MAKER AND LOWERED FORECASTS BY AN INFLUENTIAL ANALYST FRUIT WHICH HAD OPERATING PROFIT OF 49 MILLION OR 64 CENTS A SHARE IN 1992'S FOURTH QUARTER SAID IT EXPECTS 1993 FOURTHQUARTER SALES TO BE LOWER THAN THE 4465 MILLION OF THE PRIORYEAR PERIOD LOWERTHANEXPECTED SALES AND HIGHER OPERATING COSTS RESULTING PRIMARILY FROM LOWER PLANT UTILIZATION WILL CAUSE 1993 FOURTHQUARTER AND FULLYEAR RESULTS TO FALL BELOW WHAT WALL STREET HAD BEEN EXPECTING BEFORE THIS WEEK'S LOWERED ESTIMATES THE COMPANY SAID THE STREET HAD BEEN EXPECTING FRUIT TO EARN 55 CENTS TO 61 CENTS A SHARE IN THE FOURTH QUARTER AND 3 A SHARE FOR ALL OF 1994 YESTERDAY DEBORAH T BRONSTON A PRUDENTIAL SECURITIES INC ANALYST AGAIN REDUCED HER FOURTHQUARTER ESTIMATE TO 26 CENTS A SHARE AND CUT HER 1994 FULLYEAR FORECAST TO 255 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY FRUIT FELL 12 CLOSING AT 2450 OFF 3375 ON VOLUME OF 32 MILLION SHARES 9312170061 931217 SMALL STOCK FOCUS SMALLCAP STOCKS RALLY NEAR THE CLOSE BOOSTED BY YEAREND BARGAIN HUNT BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCAP STOCKS KICKED HIGHER NEAR THE CLOSE EXTENDING AN ALLDAY RALLY AND CUTTING THROUGH FIVE SESSIONS OF BACKTOBACK LOSSES BARGAINHUNTERS JUMPED INTO THE RING TRADERS SAID AND SCOOPED UP SOME BELEAGUERED LOWPRICED SMALLER ISSUES SOME MARKET WATCHERS SAID BUYING IS LIKELY TO INTENSIFY AS THE END OF THE YEAR APPROACHES LATE DECEMBER IS TYPICALLY A STRONG PERIOD FOR EQUITIES AS INVESTORS SOUP UP THEIR PORTFOLIOS AHEAD OF THE NEW YEAR TODAY'S TRIPLEWITCHING SESSION HOWEVER MIGHT BE TOUGH TO CALL THE QUARTERLY EXPIRATION OF STOCK FUTURES AND OPTIONS USUALLY CREATES HEAVY VOLUME AND SOME VOLATILITY THE RUSSELL 2000 INDEX GAINED 074 POINT TO 25058 THROUGH WEDNESDAY'S CLOSE THE BAROMETER HAD LOST 453 POINTS OR 178 SINCE DEC 8 THE LAST TIME IT FINISHED HIGHER THE RUSSELL INDEX MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS MEANWHILE THE NASDAQ COMPOSITE INDEX IMPROVED 256 POINTS OR 034 TO END AT 75553 ADVANCING ISSUES SURPASSED DECLINERS 1537 TO 1384 ON LIGHT NASDAQ NATIONAL MARKET VOLUME OF 234152000 SHARES AND TOTAL VOLUME OF 286973000 SHARES ON WEDNESDAY NATIONAL MARKET VOLUME WAS 246084600 SHARES WHILE TOTAL VOLUME REGISTERED 287595000 SHARES TWO OF THE BIGGER GAINERS WPI GROUP A WARNER NH POWER CONVERSION COMPONENTS CONCERN AND MCAFEE ASSOCIATES A SANTA CLARA CALIF SOFTWARE COMPANY REPORTED NO NEWS YESTERDAY BUT BOTH HAD BEEN BEATEN UP IN RECENT SESSIONS WPI ROSE 5/8 TO 3 5/8 AFTER CLOSING AT 2 7/8 LAST FRIDAY MCAFEE ROSE 1 1/4 TO 8 3/4 BUT HAD FINISHED AT 6 ON DEC 6 BUT THERE ALSO WAS BUYING ON NEWS LATE WEDNESDAY GENZYME TRANSGENICS FRAMINGHAM MASS REPORTED SUCCESS IN ITS PROTEIN PROGRAM DRIVING ITS STOCK PRICE UP 1 TO 7 3/4 THE COMPANY SAID IT SUCCESSFULLY INJECTED MICE OFFSPRING WITH HUMAN PROTEINS TO PRODUCE THE PROTEINS IN THEIR MILK IN WHAT IT SAID IS THE HIGHEST CONCENTRATIONS EVER ACHIEVED IN ANY COMMERCIAL SYSTEM THE PROTEINS CONTAIN ANTIBODIES THAT CAN BE USED TO TREAT CANCER AN UPGRADE TO BUY FROM HOLD BY LEGG MASON WOOD WALKER LIFTED RESEARCH INDUSTRIES' STOCK PRICE 1 1/4 TO 10 1/4 ANALYST EUGENE MELNITCHENKO SAID THE SALT LAKE CITY HEALTHCARE PRODUCTS COMPANY HAS AN EXCELLENT PRODUCT LINE AND IS VERY WELLMANAGED PROCYTE JUMPED 3 3/8 TO 14 3/8 AFTER THE FOOD AND DRUG ADMINISTRATION GAVE THE GOAHEAD TO RESUME TRIALS OF IAMIN A TOPICAL GEL UNDER DEVELOPMENT TO TREAT FOOT ULCERS IN DIABETICS THE FDA HAD TOLD THE KIRKLAND WASH COMPANY TO HALT TRIALS AFTER THE DEATHS OF SEVEN OF THE 339 PATIENTS TREATED TO DATE IN THE STUDY PROCYTE'S STOCK PRICE HAD DROPPED 4 5/8 POINTS TO 10 7/8 MONDAY MICROTEST A PHOENIX MAKER OF DIAGNOSTIC AND TESTING TOOLS FOR NETWORK CABLING IMPROVED 1 TO 8 OLDE DISCOUNT PUT AN INITIAL BUY RATING AND AN 18TO24MONTH PRICE TARGET OF 15 ON THE STOCK 9312170060 931217 WHO'S NEWS CENTRAL MAINE POWER CO CENTRAL MAINE POWER CO AUGUSTA MAINE THIS ELECTRIC UTILITY NAMED DAVID T FLANAGAN PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE NEXT MONTH MR FLANAGAN WHO WAS EXECUTIVE VICE PRESIDENT SUCCEEDS MATTHEW HUNTER WHO REMAINS CHAIRMAN UNTIL HIS RETIREMENT NEXT YEAR 9312170059 931217 BUSINESS BRIEF TRIZEC CORP REALESTATE FIRM PROMISES FLEXIBILITY IN TALKS ON DEBT TRIZEC CORP TORONTO EAGER TO COMPLETE A DEBT RESTRUCTURING WITHIN THE NEXT 90 DAYS SAID IT WOULD BE FLEXIBLE ON ITS TERMS WHEN IT GETS DOWN TO NEGOTIATIONS WITH ITS SENIOR CREDITORS THE FINANCIALLY TROUBLED REALESTATE CONCERN PROPOSED A RESTRUCTURING PLAN IN AUGUST THAT WOULD CONVERT MUCH OF ITS 19 BILLION CANADIAN DOLLARS US14 BILLION OF DEBT INTO NEW EQUITY SENIOR DEBENTURE HOLDERS HAVE COMPLAINED THEY WOULD RECEIVE TOO LITTLE CONTROL OF THE COMPANY 49 OF THE EQUITY UNDER ITS RESTRUCTURING PLAN THE HOLDERS ALSO WOULD RECEIVE NEW TRIZEC DEBT HOWEVER THEY OBJECT TO THE PLAN'S GIVING TRIZEC THE RIGHT TO CONVERT NEW DEBT INTO ADDITIONAL EQUITY AT A LATER DATE THOMAS SPERRY A REPRESENTATIVE OF UNION BANK OF SWITZERLAND AND CHAIRMAN OF THE COMMITTEE REPRESENTING HOLDERS OF THE SENIOR DEBENTURES SAID THE COMMITTEE EXPECTS TO MAKE A COUNTERPROPOSAL TO THE COMPANY WHEN IT BEGINS NEGOTIATIONS 9312170058 931217 WHO'S NEWS SEAGULL ENERGY CORP SEAGULL ENERGY CORP HOUSTON ROBERT W SHOWER CHIEF FINANCIAL OFFICER AND A MEMBER OF THE BOARD WAS ALSO NAMED AN EXECUTIVE VICE PRESIDENT MR SHOWER 56 YEARS OLD HAD BEEN A SENIOR VICE PRESIDENT 9312170057 931217 BUSINESS BRIEF TELEGLOBE INC MONTREAL COMPANY TO SELL MEMOTEC STAKE TO CMAC TELEGLOBE INC SAID IT AGREED TO SELL A 51 STAKE IN ITS MEMOTEC COMMUNICATIONS INC UNIT TO CMAC INDUSTRIES INC FOR 407 MILLION CANADIAN DOLLARS US305 MILLION THE AGREEMENT IS SUBJECT TO COMPLETION OF A PREVIOUSLY ANNOUNCED PUBLIC OFFERING FOR THE REMAINDER OF THE SHARES IN MEMOTEC COMMUNICATIONS FORMED RECENTLY FROM TELEGLOBE'S COMMUNICATIONSPRODUCTS DIVISIONS CMAC A SHERBROOKE QUEBEC COMPANY THAT MAKES MICROELECTRONIC PARTS WILL PAY C31 MILLION OF THE PURCHASE PRICE IN CASH AND THE REST IN A PROMISSORY NOTE DUE IN JANUARY 1995 TELEGLOBE OF MONTREAL PROVIDES INTERNATIONAL TELECOMMUNICATIONS SERVICES 9312170056 931217 FILM FLAM MOVIERESEARCH CZAR IS SAID BY SOME TO SELL MANIPULATED FINDINGS NRG'S FARRELL IS ACCUSED BY FORMER EMPLOYEES OF FUDGING TEST RESULTS THE PRESSURES IN HOLLYWOOD BY RICHARD TURNER AND JOHN R EMSHWILLER STAFF REPORTERS OF THE WALL STREET JOURNAL HOLLYWOOD IN THE WILDLY INSECURE WORLD OF MOVIE EXECUTIVES JOSEPH FARRELL SOOTHES ANXIETIES NATIONAL RESEARCH GROUP INC THE COMPANY HE FOUNDED AND RUNS DOMINATES THE FIELD OF MOTIONPICTURE RESEARCH AND SUCH RESEARCH PLAYS AN EVERINCREASING ROLE IN GUIDING THE INDUSTRY NRG GENERATES STREAMS OF DATA ON EVERYTHING FROM WHICH FILMS MOVIEGOERS PLAN TO SEE TO WHICH MOVIE ADS ARE MOST EFFECTIVE ALMOST EVERY MAJOR FILM IS SCREENED SEVERAL TIMES IN FRONT OF TEST AUDIENCES RECRUITED BY NRG WHICH THEN GATHERS QUANTIFIES AND ANALYZES VIEWER REACTION NRG RESEARCH HELPS DETERMINE WHETHER A MOVIE GETS PROMOTED A LOT OR HARDLY AT ALL FILM ENDINGS MAY BE CHANGED AND SCENES ELIMINATED BASED ON NRG FINDINGS LAST YEAR'S SMASH HIT THE BODYGUARD FOR INSTANCE WAS REWORKED TO INCLUDE MORE ACTION FOOTAGE WITH KEVIN COSTNER AFTER PREVIEW SCREENING DATA FROM NRG SHOWED THAT YOUNG MALES WERE LESS ENTHUSIASTIC ABOUT THE FILM THAN THEIR FEMALE COUNTERPARTS ACCORDING TO THE MOVIE'S DIRECTOR MICK JACKSON THE MOVIE WENT ON TO GROSS MORE THAN 400 MILLION FOR WARNER BROS MR FARRELL'S NUMBERS SEEM TO GIVE HOLLYWOOD A RARE SOLID SCALE OF MEASUREMENT A TOUCHSTONE OF OBJECTIVITY IN A BUSINESS WHERE BIG FINANCIAL DECISIONS ARE OFTEN MADE ON THE BASIS OF HYPE SIZZLE AND POLITICS YOU NURTURE A PROJECT FOR A YEAR OR 18 MONTHS AND THEN YOU GO TO THE FIRST SCREENING AND THE LIGHTS COME UP AND NOBODY LOOKS AT YOU EVERYBODY'S LOOKING AT JOE FARRELL SAYS BRANDON TARTIKOFF FORMER CHAIRMAN OF PARAMOUNT PICTURES BUT THE RELATIONSHIP BETWEEN NRG AND THE STUDIOS IS A DELICATE AND AMBIGUOUS ONE ASK STUDIO EXECUTIVES OR MOVIE PRODUCERS IF THEY ARE DEPENDENT ON MR FARRELL AND THEY FREQUENTLY RUN FOR COVER MANY DIRECTORS AND WRITERS QUIETLY RESENT THE SWAY THAT SUCH A TECHNOCRAT HAS GAINED OVER THEIR CREATIONS AND EVEN HOLLYWOOD TYCOONS WANT PEOPLE TO BELIEVE THAT THEY TREAT A MOVIE LIKE ART RATHER THAN LIKE A NEW BRAND OF TOOTHPASTE SO MR FARRELL AND NRG KEEP A VERY LOW PROFILE THE 58YEAROLD EXECUTIVE RARELY GRANTS INTERVIEWS NRG LONG HAS OPERATED OUT OF A RUNDOWN OFFICE BUILDING ON HOLLYWOOD BOULEVARD ABOVE A SOUVENIR SHOP IN MANY WAYS THE COMPANY IS HOLLYWOOD'S LITTLE SECRET BUT THERE ARE CLAIMS THAT MR FARRELL HAS BEEN KEEPING A SECRET OF HIS OWN ABOUT TWO DOZEN FORMER NRG EMPLOYEES RANGING FROM HOURLY WORKERS TO SENIOR OFFICIALS SAY THAT THE COMPANY'S RESEARCH DATA ARE SOMETIMES FALSIFIED BY MR FARRELL OR OTHERS AT THE FIRM THEY SAY THAT THEY HAVE WITNESSED OR TAKEN PART IN THE DOCTORING OR OUTRIGHT MANUFACTURING OF INFORMATION THAT NRG SELLS TO HOLLYWOOD STUDIOS WHICH PAY NRG UP TO SEVERAL MILLION DOLLARS A YEAR JOE DESCRIBED THE CHANGES AS LITTLE WHITE LIES' SAYS ERIC WILLIAMS A FORMER NRG EMPLOYEE WHO ANALYZED MOVIESCREENING RESULTS TWO OTHER FORMER NRG EMPLOYEES SAY MR FARRELL ADMITTED DATA DOCTORING TO THEM AND STILL OTHERS SAY THEY HAVE SEEN MR FARRELL HIMSELF FABRICATE DATA OR ORDER IT DONE SEVERAL PEOPLE SAY MR FARRELL TOLD THEM HE MANIPULATED DATA AT THE BEHEST OF STUDIO OFFICIALS OR FILMMAKERS BESIDES THE ALLEGATIONS ABOUT MR FARRELL HIMSELF NUMEROUS FORMER EMPLOYEES SAY DATA WERE FABRICATED BY SUBORDINATES BECAUSE OF THE SHEER PRESSURE TO GENERATE NUMBERS QUICKLY NRG'S CORPORATE CULTURE WAS SUCH THEY SAY THAT WHEN PUSHED TO THE WALL SOME EMPLOYEES FELT THAT IT WAS IN THEIR INTEREST TO FUDGE NUMBERS RATHER THAN FORCE NRG TO TELL A STUDIO THAT A JOB WOULDN'T BE FINISHED ON TIME THE FORMER HEAD OF NRG'S TELEPHONE RESEARCH OPERATION RESPONSIBLE FOR THE COMPANY'S PHONE SURVEYS SAYS SHE COMPLAINED ABOUT DOCTORING BY NRG EMPLOYEES TO MR FARRELL'S COCHAIRPERSON CATHERINE PAURA BUT NO ACTION WAS TAKEN WHY HOODWINK HOLLYWOOD THE FORMER EMPLOYEES AND OTHERS CITE SEVERAL POSSIBLE REASONS BESIDES TIGHT DEADLINES SOMETIMES MOVIESCREENING SCORES HAVE BEEN MANIPULATED UPWARD BECAUSE MR FARRELL DIDN'T WANT TO BE THE BEARER OF BAD NEWS AND INSECURE EXECUTIVES WANT TO FEEL AS IF THEY ARE MAKING SOME PROGRESS THE FORMER EMPLOYEES SAY OTHER TIMES THE DOCTORING MAY HELP JUSTIFY CHANGES THAT MR FARRELL OR HIS MOGUL CLIENTS PREVIOUSLY SUGGESTED IN A FILM THEY SAY MR FARRELL DENIES ALL THE CHARGES AND SAYS IT WOULD BE IMPOSSIBLE TO DOCTOR DATA FOR TWO REASONS FIRST HE SAYS BOTH NRG AND ITS STUDIO CLIENTS MAINTAIN ELABORATE SAFEGUARDS SECOND NRG GENERATES SUCH A VOLUME OF DATA SOME INTERRELATED THAT EINSTEIN HIMSELF COULDN'T CARRY OFF SUCH A DECEPTION IF DATA FROM TESTS OF ADVERTISING COME BACK SAYING THAT CERTAIN ADS ARE WORKING WITH CERTAIN AUDIENCE SEGMENTS THEY CAN BE CHECKED AGAINST TRACKING STUDIES OF AUDIENCE AWARENESS OF AND INTEREST IN AN UPCOMING MOVIE MR FARRELL SAYS LIKEWISE IF A MOVIE TESTS HIGH IN A SCREENING LATER BOXOFFICE RESULTS OUGHT TO CORRESPOND MR FARRELL AND MS PAURA SAY DISGRUNTLED FORMER EMPLOYEES ARE SPREADING MISINFORMATION SEVERAL OF THOSE INTERVIEWED FOR THIS ARTICLE WERE FIRED BY NRG FOR VARIOUS VIOLATIONS OF COMPANY RULES FOLLOWING A BITTER UNIONORGANIZING DRIVE IN 1991 MANY MORE HOWEVER SAY THEY LEFT VOLUNTARILY MR FARRELL SAYS THE FIRINGS HAD NOTHING TO DO WITH THE UNION DRIVE A SPOKESMAN FOR SAATCHI & SAATCHI CO WHICH OWNS NRG BUT HAS LITTLE TO DO WITH ITS DAYTODAY OPERATIONS ALSO DENIES THAT DATA HAVE BEEN DOCTORED MR FARRELL SOLD NRG TO THE BIG LONDONBASED AD AGENCY IN 1988 FOR 10 MILLION OF MORE THAN 20 CURRENT AND FORMER TOP STUDIO OFFICIALS CONTACTED FOR THIS STORY MOST SAY THEY HAVE NO REASON TO BELIEVE NRG EVER MANIPULATED DATA SOME OF THEM SAY THAT SOME DOCTORING WOULD BE POSSIBLE WITHOUT THEIR KNOWLEDGE BUT THAT THEY CAN'T IMAGINE WHY NRG WOULD WANT TO DO IT THIS GUY RUNS A REAL PROFITABLE BUSINESS SAYS PRODUCER JOE ROTH THE FORMER CHAIRMAN OF TWENTIETH CENTURYFOX FOR HIM TO DO SOMETHING LIKE THAT WOULD BE SUICIDAL THERE'S NO UPSIDE MR FARRELL SAYS THAT NO STUDIO EXECUTIVE HAS EVER EVEN APPROACHED HIM ASKING THAT NUMBERS BE CHANGED AS SOME EXEMPLOYEES ASSERT WE DON'T HAVE A PRAYER AS AN ORGANIZATION IF WE DON'T HAVE HONEST ACCURATE DATA HE SAYS WE WOULD CRUMBLE AS AN INSTITUTION IF ANYBODY REALLY THOUGHT THAT MR FARRELL BEGAN HIS PATH TO POWER BY STUDYING FOR THE PRIESTHOOD HOW HE CAME TO MINISTER TO THE FILM INDUSTRY IS BOTH A CLASSIC HOLLYWOOD SUCCESS STORY AND A WINDOW ON THE EVOLUTION OF THE MOVIE BUSINESS LIKE PAST HOLLYWOOD KINGPINS MR FARRELL IS AN INTIMIDATING FIGURE TO MANY AND A TENACIOUS ENTREPRENEUR HE HAS BUILT AN EMPIRE THROUGH SHREWD POLITICKING AND FIERCE COMPETITIVENESS HE CAREFULLY CULTIVATES STUDIO BIGWIGS AND REGULARLY DINES WITH THEM HE HAS GIVEN NRG JOBS TO RELATIVES OF STUDIO EXECUTIVES HE DRIVES EMPLOYEES AND HIMSELF HARD ALL THIS HAS HELPED MAKE HIM FETED FEARED AND WEALTHY ENOUGH TO DRIVE A MERCEDES A BENTLEY AND A ROLLSROYCE NRG EARNS ABOUT 3 MILLION A YEAR ON REVENUE OF AT LEAST 30 MILLION EXEXECUTIVES SAY MR FARRELL WON'T DISCUSS EARNINGS BUT CONFIRMS THAT REVENUE EXCEEDS 30 MILLION WHEN MR FARRELL FOUNDED NRG IN 1978 AFTER RISING TO VICE CHAIRMAN OF POLLING FIRM LOUIS HARRIS ASSOCIATES MOVIE RESEARCH WAS A STEPCHILD IN HOLLYWOOD ALTHOUGH MOVIEMAKERS HAD SOUGHT EARLY AUDIENCE REACTION FOR DECADES RESEARCH REMAINED PRIMITIVE BUT PARTLY OWING TO THE UNTIRING EFFORTS OF MR FARRELL IT HAS BECOME AN INDISPENSABLE PART OF THE PROCESS SAYS JEFF BERG CHAIRMAN OF INTERNATIONAL CREATIVE MANAGEMENT AGENCY AFTER WORKING MOSTLY WITH FILMMAKERS SUCH AS FRANCIS FORD COPPOLA MR FARRELL SNAGGED A KEY STUDIO ACCOUNT WITH MCA'S UNIVERSAL PICTURES NOW A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO WILLETTE KLAUSNER WHO HEADED RESEARCH THERE SAYS HIS TIMING WAS EXQUISITE UNIVERSAL WAS AN ESPECIALLY HIGHVOLUME PRODUCER SO MR FARRELL GAINED VALUABLE INFORMATION FOR HIS DATABASE HE COULD LEVERAGE THAT TO GET INTO OTHER STUDIOS SHE ADDS WHAT IMPRESSED HER SHE SAYS WAS THAT HE'D MOVE HEAVEN AND EARTH TO COMPLETE AN ASSIGNMENT I'D MAKE REQUESTS THAT EVEN I THOUGHT WERE UNREASONABLE HE WOULD ALWAYS DO IT HE DELIVERS NRG IS THE EXCLUSIVE RESEARCH FIRM FOR THE FILM UNITS OF PARAMOUNT COMMUNICATIONS INC METROGOLDWYNMAYER INC NEWS CORP'S TWENTIETH CENTURYFOX SONY CORP'S COLUMBIA AND TRISTAR UNITS AND WALT DISNEY CO IT CONTROLS MOST OF THE BUSINESS AT TIME WARNER INC'S WARNER BROS OF THE MAJOR STUDIOS ONLY UNIVERSAL DOESN'T USE MR FARRELL FOR SCREENINGS ALTHOUGH IT SUBSCRIBES TO SOME OF NRG'S OTHER SURVEY WORK SOME HAVE TRIED AND FAILED TO REDUCE MR FARRELL'S INFLUENCE WHILE CHAIRMAN OF FOX INC BARRY DILLER WHO HAS ALWAYS BEEN SCORNFUL OF MARKET RESEARCH BECAME INCREASINGLY DISENCHANTED WITH THE PREDICTIVE ACCURACY OF NRG FINALLY AFTER IT WRONGLY PREDICTED THAT THE 1989 HIT WAR OF THE ROSES WOULD PERFORM POORLY HE ANGRILY DECREED THAT FOX SEVER TIES WITH NRG DILLER ASSOCIATES SAY THAT MR FARRELL WENT TO WORK BEHIND THE SCENES AND THAT SOON AFTER FOX EXECUTIVES INCLUDING THENSTUDIO CHIEF JOE ROTH BEGAN USING NRG AGAIN AND MR DILLER DIDN'T FOLLOW THROUGH WITH HIS EDICT MR DILLER AGAIN BEGAN EXPLORING A DIMINUTION OF MR FARRELL'S ROLE ABOUT TWO YEARS LATER BUT HE LEFT THE STUDIO SHORTLY THEREAFTER AND NRG CONTINUED WORKING FOR FOX MR DILLER NOW HEAD OF QVC NETWORK INC DECLINES TO COMMENT ON SPECIFIC DEALINGS INVOLVING MR FARRELL BUT DOES SAY THE BEST WAY TO DO MOVIEMAKING IS DATALESS MR ROTH CONFIRMS HE WORKED TO KEEP MR FARRELL DESPITE MR DILLER'S OBJECTIONS BECAUSE HE FINDS NRG VALUABLE MR FARRELL SAYS HE DOESN'T RECALL THE EPISODE MR FARRELL ARGUES THAT IT WOULD BE IMPOSSIBLE TO FALSIFY DATA BECAUSE STUDIOS WOULD NOTICE VARIATIONS IN THE RESULTS HE SAYS THAT WHEN NRG PREDICTS OPENINGWEEKEND BOXOFFICE RESULTS FOR EXAMPLE ITS FORECAST FALLS WITHIN 10 OF THE ACTUAL TOTAL 80 OF THE TIME STUDIO EXECUTIVES SAY THAT NRG'S PREDICTIONS WHEN VERIFIABLE GENERALLY ARE IN THE BALLPARK BUT THEY ARE USED TO WIDE VARIATIONS IN THE CURRENT CHRISTMAS SEASON SEVERAL EXECUTIVES SAY NRG HAS PREDICTED OVEROPTIMISTIC RESULTS FOR SEVERAL PICTURES FOR SISTER ACT 2 BACK IN THE HABIT RELEASED LAST WEEKEND NRG PREDICTED AN AUDIENCE ABOUT A THIRD HIGHER THAN THE ACTUAL RESULT DISNEY EXECUTIVES SAY MR FARRELL DECLINES TO DISCUSS THAT PREDICTION SAYING HE IS CONTRACTUALLY BOUND NOT TO TALK ABOUT CLIENT AFFAIRS IN THE OFTEN UPSIDEDOWN WORLD OF HOLLYWOOD HOWEVER PINPOINT ACCURACY ISN'T ALWAYS THE MAIN THING STUDIO EXECUTIVES SEEK FROM MR FARRELL IN A BUSINESS WHERE CORPORATE FORTUNES AND INDIVIDUAL CAREERS CAN RIDE ON THE OUTCOME OF A SINGLE FILM EXECUTIVES LOOK TO HIM ALMOST DESPERATELY FOR GUIDANCE REASSURANCE AND COVER IF THINGS GO BADLY INSIDE NRG SOME FORMER EMPLOYEES CLAIM TOP OFFICIALS WERE SOMETIMES REMARKABLY FRANK ABOUT DATA DOCTORING AND THE REASONS FOR IT MR WILLIAMS THE FORMER ANALYST WHO LEFT THE COMPANY ON FRIENDLY TERMS SAYS HE ONCE QUESTIONED MR FARRELL ABOUT CHANGES MADE IN SCREENING RESULTS THAT MADE THE MOVIE LA STORY DISTRIBUTED BY TRISTAR PICTURES APPEAR MORE POPULAR WITH A TEST AUDIENCE THAN IT HAD ACTUALLY BEEN MR FARRELL ACCORDING TO MR WILLIAMS SAID HE HAD CHANGED THE RESULTS IN ORDER TO PLEASE THE FILM'S PRODUCER DANIEL MELNICK MR FARRELL ASSERTED THAT MR MELNICK WANTED THE FILM'S SCORE RAISED IN ORDER TO COAX STEVE MARTIN INTO DOING SOME POSTPRODUCTION WORK THAT WASN'T REQUIRED IN THE ACTOR'S CONTRACT MR WILLIAMS SAYS MR MELNICK SAYS HE NEVER ASKED FOR ANY SUCH CHANGES TO MANIPULATE A SCORE IS TO KID YOURSELF HE SAYS ADDING THAT MR MARTIN IS A FRIEND AND HE WOULDN'T MISLEAD HIM MR WILLIAMS ALSO SAYS THAT HE HAS NO REASON TO BELIEVE THAT MR MELNICK ASKED FOR THE SCORES TO BE BUMPED THAT THIS WAS SIMPLY WHAT MR FARRELL TOLD HIM MR FARRELL DENIES THE WHOLE INCIDENT OCCURRED EILEEN BERGER HIRED IN 1992 TO RUN NRG'S LONDON OFFICE SAYS SHE QUIT SIX WEEKS LATER BECAUSE OF WHAT SHE SAYS SHE DISCOVERED ABOUT THE COMPANY'S RESEARCH METHODS AFTER TALKING WITH MR FARRELL MS BERGER SAYS SHE CONCLUDED THAT NRG HAD FABRICATED DATA AND THAT THIS WAS OFTEN DONE AT THE DIRECTION OF STUDIO EXECUTIVES SHE DECLINES TO DISCUSS SPECIFICS CITING A CONFIDENTIALITY CLAUSE SHE HAD IN HER NRG CONTRACT MR FARRELL SAYS HE CAN'T UNDERSTAND HOW ANYONE COULD GET SUCH AN IMPRESSION TALKING WITH HIM THREE FORMER NRG EMPLOYEES SAY THE COMPANY'S LONGTIME CHIEF ANALYST EDWARD LAMBEK OFTEN COMPLAINED ABOUT THE SHENANIGANS AT THE FIRM ED SAID TO ME THAT FOR MANY YEARS HE CONSISTENTLY AND REPEATEDLY DOCTORED THE NUMBERS THIS IS WHAT JOE WANTED AND THIS IS WHAT HE DID SAYS ONE FORMER NRG EXECUTIVE MR LAMBEK DECLINED REQUESTS TO BE INTERVIEWED MR FARRELL SAYS HE NEVER ORDERED MR LAMBEK OR ANYONE ELSE TO DOCTOR DATA FOUR FORMER NRG EMPLOYEES SAY THEY SAW MR FARRELL CHANGE RESULTS OR ORDER EMPLOYEES TO MAKE SUCH CHANGES OCCASIONALLY MR FARRELL WOULD ORDER NRG EMPLOYEES TO MAKE UP QUESTIONNAIRES ONE OF THE FORMER STAFFERS SAYS SOMETIMES HE WOULD ORDER EXCELLENTS' OR VERY GOODS' SOMETIMES HE WOULD HAVE US THROW OUT POORS' IF THERE WERE TOO MANY THIS PERSON SAYS MR FARRELL SAYS THAT TO DOCTOR SCREENING RESULTS WOULD BE IMPOSSIBLE BECAUSE THERE IS ONLY ABOUT A HALF HOUR BETWEEN THE TIME AN AUDIENCE FILLS OUT ITS QUESTIONNAIRES AND WHEN NRG GIVES STUDIO BOSSES A PRELIMINARY COUNT ALSO HE SAYS STUDIO REPRESENTATIVES ALMOST ALWAYS ARE IN THE COUNTING ROOM WHILE THE QUESTIONNAIRES ARE TALLIED BUT SEVERAL STUDIO EXECUTIVES SAY STUDIO PERSONNEL OFTEN AREN'T THERE THAT MANY TIMES THEY ARE MILLING AROUND IN THE AISLES OR IN THE LOBBY MR FARRELL PAID PARTICULAR ATTENTION TO THE AFTERSCREENING FOCUS GROUPS EXEMPLOYEES SAY BEFORE A FILM BEGINS A FEW DOZEN VIEWERS ARE ASKED TO STAY AFTERWARD AND DISCUSS IT WHILE STUDIO OFFICIALS LISTEN THOUGH THE GROUPS ARE SUPPOSED TO BE PICKED RANDOMLY SEVERAL EXEMPLOYEES SAY MR FARRELL AND OTHER NRG OFFICIALS OFTEN TOLD THEM TO CULL OUT ANY VIEWERS WHO HADN'T LIKED THE FILM JOLEEN TROPP RECALLS HELPING TO ARRANGE SUCH A GROUP FOR A SCREENING OF PARAMOUNT'S 1990 FILM THE GODFATHER PART III ATTENDED BY TOP STUDIO BRASS AS WELL AS MR COPPOLA ITS DIRECTOR THE WHOLE THING IS TO PLEASE THE STUDIO SAYS MS TROPP WHO WAS FIRED FOLLOWING THE UNION DRIVE IT'S LIKE TELLING A PERSON SHE IS BEAUTIFUL WHEN SHE IS REALLY 400 POUNDS OVERWEIGHT MR FARRELL DENIES HE EVER TRIED TO SLANT FOCUS GROUPS MICHELE SOLOMON SAYS SHE SAW DATA DOCTORING FROM THE TIME SHE WAS HIRED EARLY IN 1992 TO RUN NRG'S PHONERESEARCH OPERATION THE OPERATION HAS DOZENS OF PEOPLE CALLING THE PUBLIC EACH DAY DOING MOVIERELATED SURVEYS MS SOLOMON SAYS SHE SAW PHONEROOM SUPERVISORS ON THEIR OWN COMPLETING UNFINISHED QUESTIONNAIRES AT OTHER TIMES THEY WOULD CHANGE THE FAMILY STATUS RACE OR GEOGRAPHIC LOCATION OF A RESPONDENT TO GET THE MIX THE CLIENT HAD BEEN PROMISED SHE SAYS THE SUPERVISORS CLAIMED SUCH PRACTICES HAD BEEN STANDARD OPERATING PROCEDURE AT THE COMPANY FOR YEARS AND WERE NECESSARY TO GET THE LARGE VOLUME OF WORK DONE ON SCHEDULE MS SOLOMON SAYS MS SOLOMON SAYS SHE COMPLAINED TO MS PAURA NRG'S COCHAIRPERSON WHO SEEMED HORRIFIED AND PROMISED TO HELP PUT AN END TO SUCH PRACTICES BUT THE PROMISED CHANGES NEVER CAME SHE ADDS WE MUST HAVE HAD HALF A DOZEN MEETINGS ABOUT LETTING GO THE SUPERVISORS WHO DOCTORED QUESTIONNAIRES BUT CATHERINE ALWAYS WAS RELUCTANT TO LET THEM GO SAYS MS SOLOMON EVENTUALLY MS SOLOMON SAYS SHE CONCLUDED NRG WASN'T INTERESTED IN CLEANING HOUSE SO SHE RESIGNED IN AUGUST 1992 MS PAURA AND MR FARRELL SAY THEY RECALL NO SUCH COMPLAINTS FROM MS SOLOMON ABOUT PHONEROOM PRACTICES MR FARRELL SAYS THAT WITH A YEARLY PAYROLL OF ABOUT 1100 FULL AND PARTTIME WORKERS INEVITABLY SOME CUT CORNERS BUT HE SAYS SAFEGUARDS PREVENT ALMOST ALL ABUSES SUPERVISORS CHECK RECRUITERS' INTERVIEWS BY CALLING BACK A PERCENTAGE OF RESPONDENTS HE SAYS THEY MONITOR INTERVIEWS IN THE PHONE DEPARTMENT WHILE MR FARRELL AND SOME FORMER EMPLOYEES SAY THAT THE SYSTEM DOES FUNCTION AND THAT EMPLOYEES WHO TRY TO FUDGE ARE DISCHARGED OTHERS SAY THE SAFEGUARDS ARE EASY TO CIRCUMVENT THEY SAY NRG'S SYSTEM OF CHECKING QUESTIONNAIRES FREQUENTLY DIDN'T FUNCTION FUDGING THE DATA WAS COMMON ENOUGH TO THE CORPORATE CULTURE OF NRG SAY SOME FORMER EMPLOYEES THAT MR FARRELL OR MS PAURA PROBABLY DIDN'T KNOW ABOUT MANY INCIDENTS IN SOME CASES THEY BELIEVE SUPERVISORS ORDERED QUESTIONNAIRES MADE UP RATHER THAN RISK MR FARRELL'S WRATH OVER NOT BEING ABLE TO COMPLETE AN ASSIGNMENT ON SCHEDULE OUR FIRST CHOICE WAS ALWAYS TO DO THE WORK LEGITIMATELY OUR LAST CHOICE WAS TO MAKE IT UP BUT FAILING TO MEET THE SCHEDULE WASN'T A CHOICE SAYS SKIP SLAUGHTER ANOTHER UNION ACTIVIST WHO WAS FIRED BY NRG HE HAD WORKED AS A MOVIESCREENING RECRUITER MR SLAUGHTER AND ANOTHER FORMER NRG SCREENER SAY THEY AND OTHERS MADE UP SEVERAL DOZEN QUESTIONNAIRES IN CONNECTION WITH A SURVEY OF THE 1990 MOVIE DICK TRACY WHEN THEY COULDN'T GET ENOUGH ACTUAL VIEWERS TO FILL THEM OUT MR FARRELL SAYS A REVIEW OF NRG RECORDS GIVES NO INDICATION OF ANY TAMPERING WITH DATA ON THAT MOVIE RANDY RIGGS ANOTHER FORMER SCREENING RECRUITER SAYS THAT FOUR OR FIVE TIMES SUPERVISORS SENT HIM AND OTHER NRG EMPLOYEES TO SCREENINGS TO MASQUERADE AS AUDIENCE MEMBERS AND FILL OUT QUESTIONNAIRES MAKING SURE THEY LIKED THE FILM HE REMEMBERS SUCH AN ORDER FOR TEEN WOLF MR RIGGS SAYS HE WAS LET GO BY THE COMPANY BUT CONTINUED TO WORK THERE PART TIME MR FARRELL SAYS NRG WOULD HAVE NO REASON TO PUT ITS OWN EMPLOYEES INTO THE AUDIENCE AT SCREENINGS AND ANY EMPLOYEE WHO TRIED TO SNEAK IN WOULD BE VIOLATING COMPANY POLICY HE SAYS THAT TO HIS KNOWLEDGE THIS HAS NEVER HAPPENED OTHER FORMER EMPLOYEES TELL SIMILAR STORIES OF MAKING UP QUESTIONNAIRES JACK GALINDO A UNION ACTIVIST WHO WAS FIRED AFTER SIX YEARS WITH THE COMPANY SAYS HE EVEN RECEIVED COMPLIMENTS FROM SUPERVISORS FOR HIS ABILITY TO FILL OUT QUESTIONNAIRES IN DIFFERENT HANDWRITING STYLES NRG ALSO CONDUCTS FIELD TESTS WHERE SUBCONTRACTORS AROUND THE COUNTRY GATHER RESPONSES TO MOVIE ADS DAVID KAUFMAN WHO WAS HEAD OF FRIEDMAN MARKETING SERVICE'S OFFICE IN EAU CLAIRE WIS SAYS THAT WHEN PUSH CAME TO SHOVE WITH A DEADLINE APPROACHING NRG SUPERVISORS ON SEVERAL OCCASIONS ASKED HIM TO PUT FALSE INFORMATION ON SURVEYS AND HE DID NRG SAID JUST DO WHAT YOU CAN PUT WHOMEVER ON WHATEVER SURVEY' REGARDLESS OF WHETHER THEY FIT THE DEMOGRAPHIC CRITERION I DID THINK IT WAS RATHER STRANGE MR KAUFMAN SAYS A SPOKESMAN FOR FRIEDMAN'S PARENT ROPER STARCH WORLDWIDE A MARKETING ADVERTISING AND PUBLICOPINION RESEARCH FIRM BASED IN MAMARONECK NY SAYS THAT THE COMPANY ISN'T AWARE OF THE ALLEGED INCIDENT AND THAT ANY SUCH ACTIONS WOULD VIOLATE ITS POLICIES MR WILLIAMS THE FORMER ANALYST SAYS THAT MR FARRELL ONCE TOLD HIM THAT AN AD TEST'S STANDARD SAMPLE OF 200 TO 500 RESPONDENTS WASN'T LARGE ENOUGH TO ENSURE AGAINST STATISTICAL IRREGULARITIES BUT JOE SAID NO STUDIO WOULD PAY FOR A SAMPLE OF 1000 SO NRG HAD TO CHANGE RESULTS SLIGHTLY BASED ON ITS EXPERIENCE SAYS MR WILLIAMS MR FARRELL DENIES THE CONVERSATION TOOK PLACE IT IS UNCLEAR TO WHAT EXTENT STUDIO OFFICIALS HAVE BEEN AWARE OF THE CHARGES OF DATA MASSAGING ONE WHO DECLINES TO BE NAMED TELLS OF OVERHEARING MR FARRELL MAKE AN OFFER TO A STUDIO CHIEF TO BUMP UP A SCORE 10 POINTS BECAUSE THE STUDIO WANTED A MOVIE'S DIRECTOR TO STOP MAKING CHANGES MR FARRELL DENIES THAT ANY SUCH CONVERSATION TOOK PLACE OLEN EARNEST FORMER RESEARCH CHIEF AT FOX AND UNIVERSAL SAYS HE HAS BEEN TOLD BY NRG EMPLOYEES OF INSTANCES OF DATA DOCTORING AND BELIEVES RESEARCH WAS ROUTINELY AND SYSTEMATICALLY ALTERED TO PUMP UP SCORES TO PLEASE MOVIEMAKERS THERE WERE PRODUCERS AT UNIVERSAL WHO HIRED NRG BEFORE THE STUDIO DID ITS INTERNAL RESEARCH AND IN VIRTUALLY EVERY INSTANCE THE RESULTS WERE 180 DEGREES AWAY FROM THE RESULTS WE GOT THEY WERE ALWAYS MORE FAVORABLE HE SAYS MR EARNEST WHO LEFT UNIVERSAL IN 1984 NOW IS AN ENTERTAINMENT MARKETING CONSULTANT IN FLORIDA A FORMER STUDIO CHIEF SAYS HE HEARD A STUDIO EXECUTIVE AT A SCREENING ASK MR FARRELL TO LIE TO A FILM'S DIRECTOR ABOUT THE RESULTS AND MR FARRELL AGREED I NEARLY THREW HIM MR FARRELL OUT OF THE ROOM SAYS THE FORMER EXECUTIVE MR FARRELL SAYS HE WOULD NEVER LIE ABOUT RESULTS SOME FORMER NRG EMPLOYEES SAY THEY FEEL THAT TOP STUDIO EXECUTIVES ARE IN A WAY COCONSPIRATORS THE EXECUTIVES SOMETIMES DON'T SEEM TO TRULY CARE WHETHER THE NUMBERS ARE ACCURATE DESPITE THE 200000 OR SO IT COSTS TO DO THE DOMESTIC RESEARCH ON A TYPICAL BIGSTUDIO FILM THEY SAY MS BERGER THE WOMAN WHO WAS HIRED TO BE NRG LONDON OFFICE CHIEF SAYS WORKING WITH MR FARRELL CONVINCED HER OF THE MOVIE INDUSTRY'S SEEMING ACCOMMODATION THERE'S A CUTTHROAT ATMOSPHERE IN HOLLYWOOD TENSION IS HIGH JOBS ARE AT STAKE SHE SAYS JOE'S THERE TO MAKE THEM FEEL COMFORTABLE 9312170055 931217 CORRECTIONS & AMPLIFICATIONS SOUTHERN UNION CO FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A SHELF OFFERING FOR AS MUCH AS 475 MILLION OF DEBT SECURITIES VIA MERRILL LYNCH & CO AN ITEM THURSDAY INCORRECTLY SAID THE UNDERWRITER WAS LEHMAN BROTHERS HAUSER CHEMICAL RESEARCH INC POSTED REVENUE OF 145 MILLION FOR THE FISCAL SECOND QUARTER DOWN FROM 15 MILLION A YEAR EARLIER YESTERDAY'S SMALL STOCK FOCUS COLUMN INCORRECTLY REPORTED THAT THE COMPANY HAD REVENUE OF 21 MILLION COMPARED WITH 2 MILLION A YEAR EARLIER THOSE NUMBERS ARE THE COMPANY'S NET INCOME FIGURES FOR THE PERIODS 9312170054 931217 IBM PREPARES BIG PUSH AIMED AT CONSUMERS FIRM IN CHANGE OF FOCUS TO FORM NEW DIVISION SEEK OUTSIDE EXECUTIVE BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INTERNATIONAL BUSINESS MACHINES CORP IS CHARTING A BIG PUSH INTO THE CONSUMER MARKET FORMING A NEW DIVISION AND SEARCHING FOR AN OUTSIDE MARKETING EXECUTIVE TO RUN IT AFTER YEARS OF FOCUSING ON BIG CORPORATE CUSTOMERS THAT BOUGHT EVERYTHING FROM DESKTOP COMPUTERS TO MAMMOTH MAINFRAMES BIG BLUE WILL TAKE AIM AT CONSUMERS WITH THE CREATION OF A NEW DIVISION THAT INCLUDES IBM PERSONAL COMPUTER CO AND THE COMPANY'S NEW POWERPC GROUP ACCORDING TO PEOPLE FAMILIAR WITH THE PLAN INDUSTRY EXPERTS SAY IBM IS LOOKING FOR A TOPNOTCH CONSUMER MARKETER FROM OUTSIDE THE COMPANY TO TAKE CHARGE OF THE NEW DIVISION TECHNOLOGY EXPERIENCE ISN'T NECESSARY FOR CANDIDATES ACCORDING TO EXECUTIVES FAMILIAR WITH THE SEARCH ONE LIKELY CANDIDATE ONE PERSON SAID IS A TOP EXECUTIVE WHO RESIGNED EARLIER THIS WEEK FROM RJR NABISCO HOLDINGS CORPG RICHARD THOMAN MR THOMAN WHO HAD BEEN HEAD OF NABISCO INTERNATIONAL HAD BEEN RECRUITED TO RJR BY THE COMPANY'S THENCHAIRMAN LOUIS V GERSTNER JR WHO NOW IS CHIEF EXECUTIVE OFFICER AT IBM THE TWO EXECUTIVES HAD WORKED TOGETHER AT AMERICAN EXPRESS CO IBM DECLINED TO COMMENT ON THE SEARCH AND MR THOMAN DIDN'T RETURN PHONE CALLS SEEKING A COMMENT IBM HAS NEVER BEEN KNOWN FOR CONSUMER MARKETING SAID ONE INDUSTRY EXECUTIVE IT'S ALWAYS BEEN KNOWN FOR THE HIGHEND AND NOW LOU GERSTNER WANTS TO INCREASE FOCUS ON PURE CONSUMER MARKETING WHILE IBM PC CO IS CONSIDERED ONE OF THE MORE SUCCESSFUL UNITS OF IBM IT IS IN A FIERCE BATTLE TO RETAIN MARKET LEADERSHIP OVER APPLE COMPUTER INC AND COMPAQ COMPUTER CORP AND THE PC UNIT HAS HAD SOME NOTABLE MARKETING GOOFS RECENTLY UNDERESTIMATING THE POPULARITY OF SOME THINKPAD AND VALUEPOINT MODELS AND UNABLE TO FILL ALL DEMAND THOUGH THERE WILL BE SOME OVERLAP BETWEEN THE BIGCUSTOMER AND CONSUMER DIVISIONS POWERPC AND IBM PC CO ARE MORE HEAVILY ORIENTED TOWARD CONSUMERS IBM IS TRYING TO USE THE POWER OF THE POWERPC CHIP TO INTEGRATE MORE NATURAL COMPUTING FEATURES INTO ITS DESKTOPS SUCH AS VOICE RECOGNITION AND WRITING WITH SPECIAL PENS INSTEAD OF TYPING THE SEARCH FOR A NEW OUTSIDER TO RUN THE NEW OPERATION AROSE FROM THE PROMOTION OF JAMES CANNAVINO WHO RECENTLY WAS NAMED IBM'S TOP CORPORATE STRATEGIST IN HIS PREVIOUS POST MR CANNAVINO OVERSAW FOUR MAJOR DIVISIONS IBM PC CO AND THE POWER PERSONAL SYSTEMS DIVISION THAT HANDLES POWERPC AS WELL AS THE DIVISION THAT MAKES HIGHERPRICED RS/6000 WORKSTATIONS AND ANOTHER THAT SELLS THE OS/2 OPERATING SYSTEM AND OTHER COMPLEX SOFTWARE TODAY IBM IS EXPECTED TO ANNOUNCE THAT IT WILL SPLIT THE FOUR AREAS THAT FORMERLY REPORTED TO MR CANNAVINO THE RS/6000 AND OS/2 DIVISIONS WILL REPORT TO THE EXECUTIVE IN CHARGE OF IBM'S HIGHEND OFFERINGS TO COMMERCIAL CUSTOMERS THE IBM PC CO AND THE POWERPC LINE WILL REPORT TO THE NEW CONSUMERORIENTED DIVISION THE NEW HEAD OF THAT DIVISION WOULD BE EXPECTED TO EXAMINE SUCH ISSUES AS DISTRIBUTION ADVERTISING MAIL ORDER BRANDING AND RETAIL OUTLETS INDUSTRY EXECUTIVES SAID THE EXECUTIVE WILL ALSO NEED TO FOCUS IBM'S SOMETIME'S OVERLAPPING AND COMPETING STRATEGIES IN THE PC MARKET FOR EXAMPLE IBM'S OWN DIRECTMAIL BUSINESS COMPETES WITH AMBRA AN IBMOWNED OPERATION RUN SEPARATELY FROM THE COMPANY 9312170052 931217 BUSINESS BRIEF LINCOLN NATIONAL CORP PUBLIC OFFERING IS PLANNED TO SELL 60 STAKE IN UNIT LINCOLN NATIONAL CORP SAID IT PLANS TO SELL A 60 STAKE IN ITS SMALLGROUP HEALTHINSURANCE UNIT THROUGH A PUBLIC OFFERING OF ABOUT 102 MILLION NEWLY ISSUED SHARES THE INSURANCE HOLDING CONCERN IN FORT WAYNE IND CREATED A NEW HOLDING COMPANY FOR ITS EMPLOYERS HEALTH INSURANCE CO UNIT GREEN BAY WISC TO BE KNOWN AS EMPHESYS FINANCIAL GROUP INC A REGISTRATION STATEMENT COVERING THE PLANNED EMPHESYS OFFERING HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THE PARENT NOTED A DATE FOR THE OFFERING HASN'T YET BEEN DETERMINED EMPHESYS WHICH INSURES ABOUT ONE MILLION PEOPLE MAINLY EMPLOYEES OF SMALLER BUSINESSES REPRESENTS THE 12THLARGEST US GROUP HEALTHINSURANCE COMPANY LINCOLN SAID AND HAD NET INCOME IN 1992 OF 408 MILLION GOLDMAN SACHS & CO ALEX BROWN & SONS INC AND MERRILL LYNCH & CO WILL COMANAGE THE UNDERWRITING 9312170051 931217 WHO'S NEWS GANTOS INC GANTOS INC GRAND RAPIDS MICH JOHN E BUNKA WAS NAMED VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER OF THIS WOMEN'S WEAR RETAILER MR BUNKA 35 YEARS OLD WAS PREVIOUSLY A CONTROLLER AT GANTOS HE SUCCEEDS WAYNE HUTNICK WHO RESIGNED DEC 4 GANTOS ALSO NAMED KENNETH GREEN 39 A VICE PRESIDENT AND GENERAL COUNSEL MR GREEN HAS SERVED AS CORPORATE COUNSEL AT GANTOS 9312170050 931217 BUSINESS BRIEF SANTA FE ENERGY RESOURCES SALE OF NATURAL GAS SYSTEM TO HADSON CORP IS CLOSED SANTA FE ENERGY RESOURCES INC HOUSTON SAID IT CLOSED THE SALE OF ITS NATURAL GAS GATHERING AND PROCESSING SYSTEM TO HADSON CORP FOR 52 MILLION OF HADSON'S PREFERRED STOCK AND 40 OF ITS COMMON SHARES SANTA FE ALSO SIGNED A MULTIYEAR MARKETING CONTRACT WITH HADSON AND WILL MERGE INTO HADSON ITS ADOBE GAS PIPELINE CO UNIT WHICH OWNS THE GATHERING AND PROCESSING SYSTEMS SANTA FE ALSO AGREED TO SELL ESSENTIALLY ALL ITS NATURAL GAS PRODUCTION TO HADSON'S MARKETING SYSTEM FOR SEVEN YEARS FOR THE FIRST TWO YEARS THE 1125 SENIOR PREFERRED STOCK SANTA FE WILL RECEIVE WILL PAY A DIVIDEND OF MORE PREFERRED SHARES THEN IT WILL PAY CASH HADSON BASED IN OKLAHOMA CITY IS UNDERGOING A FINANCIAL RESTRUCTURING AFTER EMERGING FROM CHAPTER 11 REORGANIZATION LAST YEAR WITH AN ARRAY OF NOTES PREFERRED STOCK ISSUES AND CLASSES OF COMMON STOCK SANTA FE ENERGY IS AN OIL AND GAS EXPLORATION COMPANY 9312170049 931217 THE WALL STREET JOURNAL / NBC NEWS POLL WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY ECONOMIC OPTIMISM LEAPS UPWARD A WALL STREET JOURNAL/NBC NEWS POLL FINDS FORTYTHREE PERCENT OF AMERICANS NOW EXPECT THE ECONOMY TO IMPROVE IN THE NEXT 12 MONTHS MORE THAN TWICE THE LEVEL IN OCTOBER THE RESULTS REPRESENT THE FIRST TIME IN A LONG WHILE THAT AMERICANS HAVE EXPRESSED TRULY POSITIVE FEELINGS ABOUT THE FUTURE SAY THE POLLSTERS WHO CONDUCTED THE NEW SURVEY DEMOCRAT PETER HART AND REPUBLICAN ROBERT TEETER TWO IN THREE AMERICANS SAY THEY WILL SPEND AT LEAST AS MUCH ON HOLIDAY SHOPPING THIS YEAR AS THEY DID LAST 15 EXPECT TO SPEND MORE ECONOMIC FORECASTS FOR THE FOURTH QUARTER GROW INCREASINGLY ROSY AS RETAIL SALES SURGE LOW MORTGAGE RATES DRIVE A HOUSING BOOMLET INCREASING FURNITURE SALES UNLESS EMPLOYMENT SLUMPS SPENDING GROWTH WILL CONTINUE IN THE NEW YEAR IF AT A SOMEWHAT SLOWER PACE SAYS PAUL MCCULLEY OF UBS SECURITIES IN NEW YORK SOME ADMINISTRATION ECONOMISTS PRIVATELY PREDICT THE ECONOMY MIGHT GROW BY AS MUCH AS 4 NEXT YEAR CLINTON'S ACHIEVEMENTS GET GOOD MARKS BUT THE GOP WILL COUNTERATTACK EIGHT IN 10 SAY PASSAGE OF THE BRADY LAW AND FAMILY LEAVE ACT ARE STEPS IN THE RIGHT DIRECTION 55 FEEL THE SAME ABOUT HIS ECONOMIC PROGRAM AND 53 FEEL THAT WAY ABOUT NAFTA EVEN ON THE STICKY ISSUE OF HOMOSEXUALS IN THE MILITARY 50 SAY HIS POLICY IS A POSITIVE STEP WHILE 40 BELIEVE IT IS A MOVE IN THE WRONG DIRECTION REPUBLICANS THINK CLINTON'S ECONOMIC PLAN FARES WELL ONLY BECAUSE PEOPLE BELIEVE IT WILL CUT THE DEFICIT DEEPLY AND QUICKLY BUT THE GOP PLANS TO POUND AWAY AT THE THEME THAT HIGHER TAXES AREN'T REALLY STANCHING THE RED INK IN THE POLL A 41 PLURALITY THINKS CLINTON'S ECONOMIC POLICIES WILL HARM THEM PERSONALLY ONLY 22 EXPECT TO BENEFIT UNIVERSAL COVERAGE IS A STRONG SELLING POINT FOR CLINTON'S HEALTH PLAN THE JOURNAL/NBC POLL FOUND THAT AMERICANS FAVOR HIS PROPOSAL OVER A LESS COSTLY BUT NONUNIVERSAL PLAN SUCH AS REP COOPER'S BY 69 TO 20 OVERALL CLINTON'S PLAN IS FAVORED BY 47 AND OPPOSED BY 32 BUT 36 SAY LAWMAKERS SHOULD MAKE MAJOR CHANGES BEFORE PASSING IT COMPARED WITH 35 WHO SAY IT NEEDS LITTLE OR NO CHANGE AND 15 WHO SAY IT SHOULDN'T BE PASSED AT ALL THE AMA GROWS DEFENSIVE AMID MOUNTING CRITICISM ABOUT ITS RETREAT FROM SUPPORTING EMPLOYER MANDATES WHICH ARE BACKED BY 65 IN THE POLL THE AMA SAYS IN A LETTER TO CLINTON THAT IT MERELY WANTS TO CONSIDER OTHER FINANCING APPROACHES MEANWHILE SINGLEPAYER PROPONENTS GLEEFULLY TOUT A NEW CBO ANALYSIS CONCLUDING THAT A GOVERNMENTRUN SYSTEM COULD SAVE AS MUCH AS 292 BILLION BY 2003 THE DEMOCRATIC NATIONAL COMMITTEE CONSIDERS SHOWING AN INTERACTIVE VIDEO PROMOTING THE CLINTON PLAN AT 60 TO 80 SHOPPING MALLS AROUND THE COUNTRY A CRIME CRACKDOWN IS DEMANDED BY AMERICANS CRIME HAS ZOOMED TO THE TOP OF THE LIST OF NATIONAL CONCERNS THREE OUT OF FOUR SAY THE BRADY HANDGUN LAW IS GOOD BUT MORE GUNCONTROL LAWS ARE NEEDED WHILE ONLY 12 BELIEVE THE LAW GOES TOO FAR STRONG MAJORITIES FAVOR MANDATORY LIFE SENTENCES FOR VIOLENT THREETIME OFFENDERS AND PUTTING 100000 MORE COPS ON THE STREET AS PEROT FADES 12 NOW THINK HE IS JUST OUT TO HURT CLINTON UP FROM ONLY 3 AT THE BEGINNING OF THE YEAR A RISING SHARE 23 THINK HE IS SEEKING PUBLIC ATTENTION FOR HIMSELF PEROT CLOSES IN ON HIS PROMISE TO VISIT ALL 50 STATES HE IS AT 49 NOW SETTING SUN BY 47 TO 44 AMERICANS NOW THINK THE US IS MORE ECONOMICALLY POWERFUL THAN JAPAN A STARK CHANGE FROM 1991 WHEN TWOTHIRDS BELIEVED JAPAN WAS MORE POWERFUL WITH NAFTA AND GATT LARGELY RESOLVED THE ADMINISTRATION'S TRADE FOCUS SHIFTS BACK TO TOKYO NEGOTIATORS HAVE MADE LITTLE HEADWAY SO FAR BUT EXPECT PROGRESS BEFORE JAPANESE PRIME MINISTER HOSOKAWA MEETS CLINTON IN FEBRUARY THE UNION LABEL ISN'T WHAT IT USED TO BE BY 48 TO 34 POLL RESPONDENTS BELIEVE LABOR UNIONS HURT RATHER THAN HELP THE CAUSE OF WORKING AMERICANS BY A SIMILAR MARGIN AMERICANS BELIEVE UNIONS HURT THE COUNTRY AS A WHOLE DOES IT OR DOESN'T IT HAVE THE BOMB ONLY NORTH KOREA KNOWS FOR SURE SOME US OFFICIALS GROUSE THAT THE CIA'S CONCLUSION THAT PYONGYANG PROBABLY HAS AT LEAST ONE NUCLEAR WEAPON OVERSTATED THE CASE GIVING THE KOREANS UNDESERVED EXTRA LEVERAGE THE UN'S BOUTROS GHALI WILL TRY TO BREAK THE STALEMATE WITH A CHRISTMAS DAY VISIT TO PYONGYANG THE JOURNAL/NBC POLL SHOWS THAT 31 REGARD THE KOREAN SITUATION AS THE MOST IMPORTANT FOREIGNPOLICY ISSUE 21 IN THE POLL CONDUCTED EARLIER THIS WEEK CITED RUSSIAN INSTABILITY EIGHTYSEVEN PERCENT FAVOR IMPROVING RELATIONS WITH NORTH KOREA IF IT ALLOWS INSPECTIONS AND PROMISES NOT TO BUILD NUCLEAR WEAPONS AMERICANS ARE CLOSELY DIVIDED ON WHETHER TO SEND MORE TROOPS TO THE REGION BUT STRONGLY OPPOSE A MILITARY STRIKE AGAINST THE NORTH MINOR MEMOS PUBLIC DISAPPROVAL OF CONGRESS NOW 56 HAS ONLY FALLEN BELOW 60 IN TWO JOURNAL/NBC POLLS THIS YEAR BOTH TAKEN WHEN CONGRESS WASN'T IN SESSION AT 56 CLINTON'S JOBAPPROVAL RATING IS ACTUALLY HIGHER THAN THAT OF RONALD REAGAN AT THE END OF HIS FIRST YEAR IN OFFICE 9312170048 931217 WHAT'S NEWS WORLDWIDE INMAN WAS SELECTED BY CLINTON TO SUCCEED ASPIN AS DEFENSE SECRETARY THE PRESIDENT ANNOUNCED HIS CHOICE OF INMAN 62 A RETIRED NAVY ADMIRAL AND FORMER DEPUTY DIRECTOR OF THE CIA A DAY AFTER ASPIN SAID HE WAS RESIGNING FROM THE POST DURING A CEREMONY AT THE WHITE HOUSE INMAN WHO SERVED IN BOTH GOP AND DEMOCRATIC ADMINISTRATIONS SAID HE HADN'T SOUGHT THE JOB BUT ACCEPTED IT BECAUSE OF DUTY AND COUNTRY THE SENATE MUST CONFIRM INMAN BUT HE APPEARS TO HAVE STRONG BIPARTISAN SUPPORT SEN NUNN WHO HEADS THE ARMED SERVICES COMMITTEE SAID HE INTENDS TO HOLD HEARINGS AS SOON AS CONGRESS RECONVENES ON JAN 25 AND HOPES TO HAVE INMAN ON BOARD AS SOON AS POSSIBLE A FEDERAL JUDGE TOOK POSSESSION OF SEN PACKWOOD'S PERSONAL DIARIES WHICH THE SENATE ETHICS COMMITTEE IS SEEKING AS IT INVESTIGATES SEXUALHARASSMENT CHARGES AGAINST THE OREGON REPUBLICAN THE MOVE CAME IN RESPONSE TO SUGGESTIONS BY THE COMMITTEE THAT THE SENATOR MAY HAVE BEEN ALTERING THE TAPERECORDED DIARIES IRISH REPUBLICAN ARMY OFFICIALS SAID THEY WOULD NEED TIME TO STUDY THE NORTHERN IRELAND PEACE PROPOSAL SIGNED WEDNESDAY BY THE PRIME MINISTERS OF BRITAIN AND IRELAND WHILE ONE OFFICIAL OF SINN FEIN THE IRA'S POLITICAL WING CALLED THE PROPOSAL DISAPPOINTING SINN FEIN'S PRESIDENT STRESSED THAT HE IS COMMITTED TO PEACE A PROYELTSIN PARTY WAS GAINING AS THE VOTE TALLY CONTINUED FROM SUNDAY'S RUSSIAN ELECTIONS BUT WITHOUT A COALITION WITH OTHER REFORMERS RUSSIA'S CHOICE LIKELY WILL FALL SHORT OF THE SEATS WON BY THE COMMUNISTS AND THEIR ALLY THE AGRARIAN UNION VICE PRESIDENT GORE SIGNED ECONOMIC AND SPACE ACCORDS IN MOSCOW FOUR EUROPEAN NATIONS INFURIATED GREECE BY ESTABLISHING DIPLOMATIC TIES WITH MACEDONIA AFTER THE ACTION BY GERMANY ITALY BRITAIN AND DENMARK FRANCE SAID OTHER EC MEMBERS EXCLUDING GREECE ALSO WOULD DO SO GREECE WANTS MACEDONIA TO CHANGE ITS NAME SAYING ITS USE IMPLIES A CLAIM ON THE GREEK PROVINCE OF MACEDONIA THOUSANDS OF RIGHTWING WHITES GATHERED IN SOUTH AFRICA WIELDING SHOTGUNS AND PISTOLS AS THEY PROCLAIMED THEIR RESISTANCE TO POLITICAL REFORMS SEPARATELY AFRICAN NATIONAL CONGRESS LEADER MANDELA ADDRESSED HIS PARTY'S GUERRILLA ARMY TELLING THEM TO PUT AWAY THEIR GUNS BECAUSE THEIR MISSION TO END WHITE DOMINATION WAS NEARLY COMPLETE ISRAELI SOLDIERS RECEIVED ORDERS TO CRACK DOWN ON JEWISH SETTLERS WHO ATTACK ARABS IN THE OCCUPIED LANDS MEANWHILE ISRAEL SAID IT WOULDN'T COMPROMISE ON A SECURITY MATTER DELAYING PALESTINIAN SELFRULE FOREIGN MINISTER PERES HOWEVER SAID AN ACCORD WAS REACHED ON AN OPEN ECONOMIC MARKET FOR THE FUTURE SELFGOVERNING TERRITORIES PRIVATE RELIEF AGENCIES THREATENED TO PULL OUT OF MOGADISHU UNLESS UN TROOPS TAKE STEPS TO CURB BANDITRY AND AN UPSURGE OF KILLINGS OF AID WORKERS SOME RELIEF OFFICIALS IN THE SOMALI CAPITAL SAID THEY BELIEVE THAT RIVAL CLANS ARE BRACING FOR A RENEWED CIVIL WAR AFTER LAST WEEK'S COLLAPSE OF PEACE NEGOTIATIONS IN ETHIOPIA CROAT AND MUSLIM COMMANDERS AGREED ON A HOLIDAY TRUCE TO TAKE EFFECT THURSDAY IN BOSNIA AND LAST FOR A WEEK AND A HALF CROATIAN RADIO SAID MEANWHILE MUSLIMS AND SERBS HELD TALKS WHILE HEAVY FIGHTING WAS REPORTED IN PARTS OF SARAJEVO SERBS LAUNCHED A MAJOR OFFENSIVE IN CENTRAL BOSNIA DOZENS OF DECOMPOSING BODIES LINED A MILELONG STRETCH OF RAILWAY OUTSIDE CONGO'S CAPITAL BRAZZAVILLE ACCORDING TO WITNESSES WHO ESCAPED FROM THE FIERCE ETHNIC FIGHTING THAT ERUPTED A WEEK AGO THE OFFICIAL DEATH TOLL WAS 81 BUT POLICE OFFICERS SAID THE ACTUAL COUNT WAS MUCH HIGHER AN ISLAMIC GROUP CLAIMED RESPONSIBILITY FOR SLAYING 12 CHRISTIAN CROAT AND BOSNIAN TECHNICIANS TUESDAY IN ALGERIA SAYING THE ATTACK WAS TO AVENGE THE KILLING OF MUSLIMS IN BOSNIA AND TO DRIVE FOREIGNERS FROM THE COUNTRY IN OTHER VIOLENCE A SENIOR JUDGE WAS SHOT DEAD YESTERDAY IN ALGIERS THREE HIGH COURT JUDGES CONFIRMED A BRAZILIAN SENATE DECISION BANNING EXPRESIDENT COLLOR FROM HOLDING PUBLIC OFFICE FOR EIGHT YEARS IN A RULING SEEN AS STRENGTHENING A CONGRESSIONAL CORRUPTION INVESTIGATION COLLOR RESIGNED AT THE START OF HIS IMPEACHMENT TRIAL LAST YEAR BUT THE SENATE CONTINUED THE TRIAL AND IMPOSED THE BAN 9312170047 931217 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN A PRELIMINARY DECISION BY THE EUROPEAN COMMUNITY'S HIGHEST COURT BACKS FRANCE'S BID TO INVALIDATE AN ECUS AGREEMENT ON ANTITRUST COOPERATION THE CASE TESTS THE EC COMMISSION'S AUTHORITY TO CONCLUDE INTERNATIONAL REGULATORY PACTS THE OPINION BY A EUROPEAN COURT OF JUSTICE ADVOCATE GENERAL SAID THE COMMISSION OVERSTEPPED ITS BOUNDS WHEN IT SIGNED THE COMPETITION ACCORD WITH THE US JUSTICE DEPARTMENT IN SEPTEMBER 1991 LEGAL SOURCES SAID THE FULL COURT IS EXPECTED TO ISSUE A FINAL RULING IN THE SPRING FRANCE INSISTED THE COMMISSION SHOULD HAVE SUBMITTED THE ANTITRUST PACT FOR APPROVAL BY EC GOVERNMENTS THE COMMISSION MAINTAINED IT COULD ACT UNILATERALLY A RESTRICTIVE FINAL RULING COULD HAMPER AN ENHANCED EC WORLD ROLE AN ANTITRUST PACT WITH CANADA HAS BEEN HELD UP BY A LEGAL CHALLENGE AND PLANNED EC ADMINISTRATIVE BODIES FROM THE ENVIRONMENT TO MEDICINE MAY NEED ACCORDS TO DEAL WITH INCREASINGLY GLOBAL BUSINESS OPERATIONS MALAYSIA CONTINUING ITS PUSH FOR RAPID INDUSTRIALIZATION INTENDS TO SPEND 115 BILLION ON DEVELOPMENT PROGRAMS IN THE NEXT TWO YEARS WITH HEFTY OUTLAYS TO UPGRADE PUBLIC WORKS EDUCATION AND DEFENSE THE ALLOCATION UNDER A FIVEYEAR PLAN THAT BEGAN IN 1991 IS AIMED PRIMARILY AT REMOVING BOTTLENECKS THAT COULD SLOW THE INCREASINGLY MANUFACTURINGBASED ECONOMY WHICH HAS IMPROVED INCOMES AND EMPLOYMENT THE GOVERNMENT EXPECTS THE ECONOMY TO EXPAND AN INFLATIONADJUSTED 8 IN BOTH 1994 AND 1995 BOOSTING GROSS DOMESTIC PRODUCT TO 46 BILLION IN 1995 FROM AN ANTICIPATED 433 BILLION THIS YEAR THE SLOW RAPPROCHEMENT BETWEEN TAIWAN AND CHINA WILL TAKE A BIG STEP THIS WEEKEND IN THE FIRST OFFICIAL TALKS IN TAIWAN SINCE APRIL WHEN THE TWO GOVERNMENTS HELD UNPRECEDENTED TALKS IN SINGAPORE ON BILATERAL CONTACTS TWO WORKINGLEVEL MEETINGS WERE HELD IN CHINA NEGOTIATING TOPICS IN TAIWAN INCLUDE AVIATION FISHING AND REPATRIATION OF ILLEGAL IMMIGRANTS AND CRIMINALS AGREEMENTS COULD ALLOW PURSUIT OF EASED CONTROLS ON INVESTMENT SOUGHT BY BUSINESSES TO DETER HIJACKINGS CHINA BANNED AIRLINE PASSENGERS FROM CARRYING TOY GUNS SHARP INSTRUMENTS HAMMERS AND DANGEROUS CHEMICALS ARMS AND EXPLOSIVES WERE ALREADY PROHIBITED IN PLANE CABINS SINCE APRIL NINE PLANES HAVE BEEN DIVERTED TO TAIWAN AND SEVERAL OF THE HIJACKERS WIELDED TOY GUNS SURGICAL KNIVES OR ACID TAIWAN ATTRIBUTES THE PIRACY TO LAX SECURITY AT CHINESE AIRPORTS AND POLITICAL REPRESSION WHILE CHINA BLAMES TAIWAN FOR DELAYS IN REPATRIATING FOR PROSECUTION THE HIJACKERS IT SAYS FLED DEBTS OR POLICE BULGARIA WILL OFFER 51 OF STATERUN BALKAN AIRLINES TO DOMESTIC AND FOREIGN INVESTORS AFTER A JUNE PLAN TO SELL 49 DIDN'T ATTRACT BUYERS THE GOVERNMENT INITIALLY WILL RETAIN 40 OF THE CARRIER BUT MAY OFFER HALF THAT STAKE TO EMPLOYEES THE AIRLINE VALUED AT 80 MILLION HAD A 19 MILLION LOSS LAST YEAR WHICH BULGARIA'S PRIVATIZATION AGENCY BLAMED ON POOR MANAGEMENT AND INEFFICIENCY BALKAN AIR CITED ITS AGING SOVIETBUILT FLEET LARGE INVESTMENT NEEDS AND THE GLOBAL BUSINESS SLOWDOWN IT FLIES TO 55 CITIES IN 46 COUNTRIES POLAND'S PARLIAMENT APPROVED CHANGES IN A TAX LAW PASSED IN JANUARY IN A BID FOR MORE REVENUE TO HELP CUT THE GOVERNMENT DEFICIT AND REDUCE TAX EVASION CRITICS SAID THIS WILL SHIFT THE BURDEN TO THOSE LEAST ABLE TO PAY AND HURT SMALL BUSINESS PERSONAL INCOMETAX RATES WERE RAISED TO 21 FROM 20 IN THE LOWEST BRACKET TO 33 FROM 30 AND TO 45 FROM 40 ON THE HIGHEST EARNINGS A LEVY BETWEEN 3 AND 9 WILL APPLY TO SALES VOLUMES OF SMALL BUSINESSES THAT AREN'T SUBJECT TO THE NEW VALUEADDED TAX THIS LEVY MUST BE PAID REGARDLESS OF PROFITABILITY MANY BUSINESSES PREDICTED THE TAX WILL CAUSE THOUSANDS OF SMALL ENTERPRISES TO FAIL AND THUS REDUCE TAX REVENUES CENTERRIGHT LAWMAKERS INCLUDING REFORMERS IN THE PREVIOUS GOVERNMENT OPPOSED THE CHANGES ADVOCATED BY COMMUNISTROOTED PARTIES THAT WON SEPTEMBER ELECTIONS PROMISING TO PROTECT THE POOR BUT NOW TRYING TO FINANCE ECONOMIC REFORMS NINE NATIONS THAT ACCOUNT FOR 70 OF THE WORLD'S 900 MILLION ILLITERATES AGREED TO GIVE EVERY CHILD THE CHANCE TO GO TO SCHOOL BY THE YEAR 2000 THE VOW AT A NEW DELHI SUMMIT WAS MADE BY BANGLADESH BRAZIL CHINA EGYPT INDIA INDONESIA MEXICO NIGERIA AND PAKISTAN ABOUT 5000 GERMAN STUDENTS PROTESTED IN BONN AGAINST CUTTING THE DURATION OF SECONDARYSCHOOL AND UNIVERSITY STUDIES THE GOVERNMENT WANTS TO SHORTEN TERMS AT PUBLICLY FUNDED INSTITUTIONS WHICH CAN OCCUPY STUDENTS INTO THEIR EARLY 30S AND HAVE THEM GET JOBS AND PAY TAXES SOONER 9312170046 931217 BUSINESS BRIEF GOODYEAR TIRE & RUBBER CO KELLYSPRINGFIELD TIRE UNIT TO INCREASE ITS PRICES BY 3 GOODYEAR TIRE & RUBBER CO'S KELLYSPRINGFIELD TIRE UNIT ANNOUNCED A 3 PRICE INCREASE ON ITS TIRES FOR AUTOS AND LIGHT AND MEDIUM TRUCKS EFFECTIVE MARCH 1 THE PRICE RISE IF IT STICKS WOULD BE THE FIRST SINCE MAY TRADITIONALLY TIRE MAKERS RAISE PRICES 3 TO 5 TWICE A YEAR IN MAY AND OCTOBER THIS PAST OCTOBER'S PRICE RISES HOWEVER NEVER MATERIALIZED INDICATING THE INDUSTRY'S INCREASED COMPETITION ONE ANALYST WAS SKEPTICAL KELLYSPRINGFIELD'S INCREASE WILL STICK WE'RE LUCKY IF 50 OF IT STICKS SAID MCDONALD & CO'S DAVID M GARITY OTHER TIRE MAKERS RESPONDED CAUTIOUSLY GOODYEAR ITSELF SAID WE'RE NOT ANNOUNCING A PRICE INCREASE AT THIS TIME A SPOKESMAN FOR GROUPE MICHELIN'S US UNIT SAID THE COMPANY HAD NO COMMENT BRIDGESTONE CORP'S BRIDGESTONE/FIRESTONE UNIT SAID IT WAS NOT AWARE OF A PLAN TO RAISE PRICES 9312170045 931217 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED DEC 10 ACCOUNTED FOR 71 OR AN AVERAGE 201 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 151 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 225 INVOLVED STOCKINDEX ARBITRAGE UP FROM 19 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 517 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR CUSTOMERS WHILE 353 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 13 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES EXECUTED MOST OF ITS PROGRAM TRADING FOR ITS OWN ACCOUNTS WHILE MORGAN STANLEY BEAR STEARNS FIRST BOSTON AND SALOMON BROTHERS DID MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9312170044 931217 BUSINESS BRIEF TOMMY HILFIGER CORP ACCORD ON MEN'S FRAGRANCE SIGNED WITH ESTEE LAUDER TOMMY HILFIGER CORP THE NEW YORK MEN'S APPAREL MAKER SAID IT SIGNED AN AGREEMENT WITH ESTEE LAUDER INC TO DEVELOP AND MARKET A MEN'S FRAGRANCE TO BE LAUNCHED IN THE SPRING OF 1995 ESTEE LAUDER A LEADING MARKETER OF HIGHEND FRAGRANCES AND COSMETICS SAID THE PACT IS ITS FIRST LICENSE AGREEMENT IN ITS 47YEAR HISTORY HILFIGER WILL RECEIVE A ROYALTY FOR USE OF ITS NAME ON THE FRAGRANCE WHICH WILL BE MARKETED BY LAUDER'S ARAMIS INC DIVISION ARAMIS WHICH HAS SEEN ITS MARKET SHARE SKID IN RECENT YEARS HAS ABOUT A 15 SHARE OF THE DEPARTMENTSTORE MEN'S TOILETRY MARKET DOWN FROM THE 40RANGE IN THE 1970'S ESTIMATES ALLAN MOTTUS A COSMETICSINDUSTRY CONSULTANT THE SIGNING OF HILFIGER HE ADDED IS LATE RECOGNITION THAT LAUDER NEEDS A STRONG DESIGNER NAME TO COMPETE AGAINST THE MEN'S FRAGRANCES BY DESIGNERS LIKE CALVIN KLEIN AND RALPH LAUREN 9312170043 931217 RUMORS ARE SPREAD OF MANAGER CHANGES AT METALLGESELLSCHAFT FRANKFURT ON THE EVE OF A SPECIALLY CONVENED MEETING OF THE METALLGESELLSCHAFT AG SUPERVISORY BOARD RUMORS ABOUT IMMINENT MANAGEMENT CHANGES SWEPT THROUGH THE FRANKFURT STOCK MARKET SENDING THE BELEAGUERED STOCK DOWN FURTHER AMONG THE REPORTS YESTERDAY WERE THAT METALLGESELLSCHAFT CHAIRMAN HEINZ SCHIMMELBUSCH AND OTHER MEMBERS OF HIS MANAGEMENT TEAM WOULD RESIGN TODAY AND THAT SIGFRIED HODAPP HEAD OF THE GROUP'S US SUBSIDIARY MG CORP HAS ALREADY BEEN REPLACED SINCE DEC 6 WHEN THE COMPANY'S CASHFLOW CRISIS BEGAN UNFOLDING IN PUBLIC ITS SHARES ON THE FRANKFURT STOCK EXCHANGE HAVE PLUNGED ALMOST 25 DROPPING TO 293 MARKS 17050 AT THE CLOSE OF FLOOR TRADING YESTERDAY DOWN FROM 30520 MARKS WEDNESDAY A SPOKESMAN FOR THE GERMAN METAL TRADING AND MACHINERY GROUP DECLINED TO COMMENT ON ANY OF THE STORIES CIRCULATING THE SUPERVISORY BOARD WHICH HAS THE POWER TO HIRE AND FIRE MANAGING BOARD MEMBERS INCLUDING MR SCHIMMELBUSCH MEETS THIS MORNING A SPOKESMAN FOR DEUTSCHE BANK AG A LARGE SHAREHOLDER IN METALLGESELLSCHAFT SAID THE BANK ALSO HAD NO COMMENT AHEAD OF THE MEETING RONALDO SCHMITZ A MEMBER OF DEUTSCHE BANK'S MANAGING BOARD IS ALSO CHAIRMAN OF METALLGESELLSCHAFT'S SUPERVISORY BOARD HILMAR KOPPER CHAIRMAN OF THE DEUTSCHE BANK MANAGING BOARD LAST WEEK DENIED REPORTS THAT THE SUPERVISORY BOARD HAD APPOINTED A FOURMEMBER PANEL TO KEEP TABS ON MR SCHIMMELBUSCH METALLGESELLSCHAFT HAS BEEN HIT IN RECENT WEEKS BY REPORTS OF A CASH SHORTAGE THAT FORCED IT GET AN EMERGENCY LINE OF CREDIT FROM DEUTSCHE BANK AND DRESDNER BANK AG ANOTHER CORPORATE SHAREHOLDER THE LIQUIDITY PROBLEM WAS HIGHLIGHTED LAST WEEK WHEN ONE OF THE COMPANY'S UNITS WAS UNABLE TO MEET A CASH CALL ON OILFUTURES CONTRACTS ON THE NEW YORK MERCANTILE EXCHANGE ALTHOUGH THE BANKS DID NOT RELEASE DETAILS OF THE LINE OF CREDIT THEY ISSUED TO SOLVE THE CRISIS ANALYSTS ESTIMATED IT COULD BE AS HIGH AS TWO BILLION MARKS ANALYSTS SAID THAT A FEW YEARS AGO MR SCHIMMELBUSCH HAD PLEDGED TO CHANGE METALLGESELLSCHAFT FROM A METALS AND TRADING COMPANY INTO A CUTTINGEDGE ENVIRONMENTALTECHNOLOGY COMPANY BUT HE HAS YET TO DELIVER THE COMPANY POSTED A NET LOSS OF 347 MILLION MARKS FOR THE YEAR ENDED SEPT 30 FOLLOWING A PROFIT OF 245 MILLION MARKS FOR THE PREVIOUS YEAR THE COMPANY ALSO SAID IT WILL PROBABLY OMIT ITS DIVIDEND THIS YEAR 9312170042 931217 BUSINESS BRIEF STORAGE EQUITIES INC FIRM IS BIDDING FOR ASSETS OF 7 SHURGARD PARTNERSHIPS STORAGE EQUITIES INC GLENDALE CALIF EMERGED AS A BIDDER FOR ASSETS OF SEVEN OF 17 SHURGARD INC REALESTATE PARTNERSHIPS THAT UHAUL INTERNATIONAL INC IS TRYING TO ACQUIRE STORAGE EQUITIES A REALESTATE INVESTMENT PARTNERSHIP THAT CONTROLS THE PUBLIC STORAGE SELFSERVICE STORAGE CHAIN SAID IT HAS OFFERED TO BUY 56 MINIWAREHOUSES AND ONE BUSINESSPARK FACILITY FROM THE SHURGARD PARTNERSHIPS IN TRANSACTIONS TOTALING AN ESTIMATED 136 MILLION A SHURGARD SPOKESMAN SAID THE COMPANY HAS RECEIVED THE OFFER AND WE ARE REVIEWING IT AS PREVIOUSLY REPORTED THE GENERAL PARTNERS OF 17 PARTNERSHIPS MANAGED BY SEATTLEBASED SHURGARD HAVE URGED THE REJECTION OF A 3095 MILLION OFFER BY UHAUL WHICH IS SEEKING TO BUY THE PARTNERSHIPS IN AN EFFORT TO EXPAND ITS OWN SELFSERVICE STORAGE BUSINESS THE GENERAL PARTNERS HAVE PROPOSED TO ROLL UP OR CONSOLIDATE THE PARTNERSHIPS INTO A PUBLICLY TRADED REAL ESTATE PARTNERSHIP UHAUL WHICH IS CONTROLLED BY THE SHOEN FAMILY THROUGH ITS AMERCO HOLDING COMPANY HAS SAID IT WILL PROCEED WITH ITS OFFER 9312170041 931217 FOUR GROUPS TO BID FOR TV LICENSES FROM THAILAND BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK FOUR GROUPS ARE EXPECTED TO BID EARLY NEXT YEAR FOR TWO NEW TELEVISION LICENSES THE THAI GOVERNMENT WILL AWARD IN ITS EFFORT TO WIDEN THE SCOPE FOR PRIVATE OWNERSHIP OF BROADCAST MEDIA ON TUESDAY THE THAI CABINET APPROVED GUIDELINES FOR THE NEW LICENSES ONE WILL BE FOR A VHF STATION AND ONE FOR THE COUNTRY'S FIRST UHF NETWORK WHICH MAY COMPRISE MORE THAN ONE STATION THAILAND ALREADY HAS FIVE VHF STATIONS THREE OF THEM MAJORITYOWNED BY THE GOVERNMENT AND TWO RUN BY THE MILITARY DURING THE BLOODY MID1992 CLASHES BETWEEN THE ARMED FORCES AND PRODEMOCRACY DEMONSTRATORS BANGKOK TV AND RADIO BROADCASTS WERE CENSORED LEADING TO DEMANDS THAT THE COUNTRY MAKE ROOM FOR MORE INDEPENDENT PRIVATE BROADCASTERS THE NEW STATIONS WILL GIVE THE PEOPLE MORE CHOICES AND INSTANTANEOUS NEWS A GOVERNMENT SPOKESMAN SAID THE SPOKESMAN SAID HE HOPES A GOVERNMENT PANEL APPOINTED BY THE CABINET WILL BE ABLE TO AWARD THE 30YEAR LICENSES IN EARLY 1994 HE ADDED THAT IT MIGHT TAKE AS LONG AS A YEAR FOR THE NEW STATIONS TO BEGIN BROADCASTING THE NEW LICENSES MARK THE LATEST STEP IN THE GOVERNMENT'S EFFORT TO OPEN AND FOSTER GREATER COMPETITION IN THE BROADCAST INDUSTRY THE PROCESS BEGAN FOUR YEARS AGO WHEN TWO PAYTELEVISION SERVICES STARTED UP IN BANGKOK ONE OWNED BY INTERNATIONAL BROADCASTING CORP A SUBSIDIARY OF SHINAWATRA COMPUTER & COMMUNICATION PCL AND THE OTHER BY THAI SKY TV A UNIT OF SIAM BROADCASTING & COMMUNICATIONS CO IN ADDITION THAIS WITH ACCESS TO SATELLITE DISHES CAN PICK UP ASIA'S REGIONAL BROADCASTERS AND ONE OF THAILAND'S NEW TELEPHONE COMPANIES TELECOMASIA PCL A SUBSIDIARY OF CHAROEN POKPHAND GROUP CO SAYS IT HOPES TO USE ITS NEW OPTICALFIBER NETWORK TO SEND TELEVISION SIGNALS VALLOBH VIMOLVANICH PRESIDENT OF TELECOMASIA SAID THAT COMPETITION IN THE BROADCAST INDUSTRY IS INCREASING BUT ADDED THAT IN ENTERING THE BUSINESS YOU HAVE TO CONSIDER THE POTENTIAL THE GOVERNMENT ESTIMATES THAT 90 OF THAILAND'S 57 MILLION PEOPLE HAVE ACCESS TO TELEVISION THE REVIEW PANEL WILL EVALUATE BIDS FOR THE TWO NEW LICENSES PARTLY ON THE BASIS OF PLANNED PROGRAMMING BECAUSE THE GOVERNMENT WANTS BROADCASTERS TO PROVIDE MORE EDUCATIONAL PROGRAMMING A THIRD GROUP IS LED BY NATION PUBLISHING GROUP CO WHICH ALREADY PRODUCES SOME PROGRAMMING FOR OTHER BROADCASTERS AND INCLUDES PACIFIC COMMUNICATIONS CO SAMART TELECOM CO THE LARGEST MAKER OF SATELLITE DISHES IN THAILAND AND SIAM COMMERCIAL BANK PCL NEW YORKBASED DOW JONES & CO WHICH PUBLISHES THE DOMESTIC AND INTERNATIONAL EDITIONS OF THE WALL STREET JOURNAL BARRON'S MAGAZINE COMMUNITY NEWSPAPERS AND OTHER PUBLICATIONS NEWSWIRES AND ELECTRONICINFORMATION SERVICES HOLDS A MINORITY STAKE IN NATION PUBLISHING THE FOURTH GROUP IS LED BY LOXLEY BANGKOK CO ONE OF THREE PRINCIPAL OWNERS OF THAI TELEPHONE & TELECOMMUNICATIONS CO AND THAI FARMERS BANK PCL 9312170040 931217 MARKETING BRIEF NEW YORK TIMES CO INTERACTIVE SERVICE IS PLANNED FOR '94 WITH AMERICA ONLINE NEW YORK TIMES CO SAID IT WILL BEGIN OPERATING A NEW INTERACTIVE SERVICE IN THE FIRST QUARTER OF 1994 DELIVERED THROUGH AMERICA ONLINE INC VIENNA VA THE SERVICE WILL PROVIDE ARTS AND ENTERTAINMENT REVIEWS AND ARTICLES AS WELL AS INFORMATION ON CULTURAL EVENTS AND LEISURE ACTIVITIES IN THE NEW YORK AREA THE SERVICE WHICH WILL CARRY THE CURRENT DAY'S TOP STORIES ON THE NEW YORK TIMES NEWS SERVICE WILL BE INTERACTIVE ALLOWING SUBSCRIBERS TO POST MESSAGES TO ELECTRONIC BULLETIN BOARDS AND DISCUSS TOPICS OF INTEREST WITH OTHER SUBSCRIBERS AS WELL PARTICIPATE IN ONLINE DISCUSSIONS WITH SELECTED TIMES WRITERS AMERICA ONLINE WHICH HAS MORE THAN 500000 SUBSCRIBERS ALSO PROVIDES INTERACTIVE SERVICES WITH TIME MAGAZINE THE CHICAGO TRIBUNE THE SAN JOSE MERCURY NEWS OMNI MAGAZINE AND THE CNN TELEVISION NETWORK 9312170039 931217 WHAT'S NEWS BUSINESS AND FINANCE THE WHITE HOUSE IS CLOSE TO ENDORSING A 500 MILLIONAYEAR TAX ON INSURERS TO FUND CLEANUPS OF HAZARDOUSWASTE SITES THE PROPOSAL MARKING A COMPROMISE BETWEEN THE TREASURY DEPARTMENT AND THE EPA WOULD REDUCE THE LIABILITY OF INDIVIDUAL INSURERS AND POLLUTERS BY BILLIONS OF DOLLARS AND SIGNIFICANTLY REDUCE THE NUMBER OF SUPERFUNDRELATED LAWSUITS IBM IS CHARTING A PUSH INTO THE CONSUMER MARKET FORMING A NEW DIVISION AND SEARCHING FOR AN OUTSIDE MARKETING EXECUTIVE TO RUN IT THE DIVISION WILL INCLUDE IBM PC AND THE COMPANY'S NEW POWERPC GROUP AND REPRESENTS A SHIFT AFTER YEARS OF FOCUSING ON LARGE CORPORATE CUSTOMERS AMERICAN STORES AGREED TO PAY AS MUCH AS 1073 MILLION TO SETTLE A SEXDISCRIMINATION SUIT FILED AGAINST A UNIT OF ITS LUCKY STORES GROCERY CHAIN A FLEET FINANCIAL UNIT AGREED TO LEND 70 MILLION AT REDUCED INTEREST RATES AND TO MAKE AS MUCH AS 35 MILLION IN OTHER CONCESSIONS TO SETTLE COMPLAINTS OF UNFAIR LENDING PRACTICES UAL'S BOARD MET TO CONSIDER ITS UNIONS' PROPOSAL TO BUY A MAJORITY STAKE IN THE UNITED AIR PARENT BUT DIDN'T REACH A DECISION THE BID IS BEING TOUTED AS THE MODEL OF EMPLOYEEOWNERSHIP THE WHITE HOUSE ENDORSES SEAGRAM SAID IT INCREASED ITS STAKE IN TIME WARNER TO 93 FROM 82 ON THE WAY TO ITS GOAL OF BUYING UP TO 15 WHICH WOULD MAKE IT TIME WARNER'S LARGEST SHAREHOLDER THE INVESTMENT IS DIRECTED BY PRESIDENT EDGAR BRONFMAN JR WHO IS KEENLY INTERESTED IN THE ENTERTAINMENT BUSINESS US IMPORTS AND EXPORTS ROSE TO RECORDS IN OCTOBER AND THE MERCHANDISETRADE DEFICIT SHRANK TO 1046 BILLION FROM 1062 BILLION IN SEPTEMBER DESPITE THE SLIGHT IMPROVEMENT IN OCTOBER THE TRADE DEFICIT HAS MOSTLY DETERIORATED DURING THE PAST 18 MONTHS PRUDENTIAL PLANS TO REJECT LIMITEDPARTNERSHIP CLAIMS MADE BY MANY WEALTHY CUSTOMERS AS PART OF A RECENT SETTLEMENT PACT WITH REGULATORS SAYING THEY WERE SOPHISTICATED ENOUGH TO KNOW THE PARTNERSHIPS' RISKS BRITISH FIRMS ARE ON A BUYING SPREE OF US COMPANIES REESTABLISHING THE UK AS THE LARGEST DIRECT FOREIGN INVESTOR IN AMERICAN BUSINESSES ALLIEDSIGNAL IS TALKING WITH TEXTRON WITH A VIEW TO BUYING TEXTRON'S LYCOMING TURBINE ENGINE DIVISION PEOPLE FAMILIAR WITH THE TALKS SAID FORD PLANS TO SHARPLY EXPAND SHIPMENTS INTO AND OUT OF MEXICO FROM THE US AND CANADA MARKING THE FIRST MAJOR PRODUCTION SHIFTS BY THE AUTO INDUSTRY SINCE NAFTA WAS APPROVED MERRYGOROUND MISSED PAYMENTS TO MANY SUPPLIERS AND SAID A BANKRUPTCYLAW FILING ISN'T RULED OUT GM'S SETTLEMENT THAT REQUIRES IT TO GIVE AS MUCH AS 6 BILLION IN COUPONS TO OWNERS OF ITS PICKUPS WITH SIDEMOUNTED GAS TANKS WAS APPROVED BY A FEDERAL JUDGE IN PHILADELPHIA TOKYO SHARES JUMPED 17 ON SIGNS JAPAN WILL MOVE FORWARD ON NEW ECONOMICSTIMULUS MEASURES THE NIKKEI ROSE 30013 TO 1778928 STOCKS ROSE TO ANOTHER HIGH IN LONDON AND SOARED 4 TO A RECORD IN HONG KONG GERMANY'S CENTRAL BANK REVISED DOWNWARD TO 4 TO 6 ITS TARGET RANGE FOR MONETARY GROWTH IN 1994 REFLECTING EXPECTATIONS OF LOWER POTENTIAL PRODUCTION IN WESTERN GERMANY FLEMING EXPECTS TO REPORT FOURTHQUARTER EARNINGS FAR BELOW ANALYSTS' EXPECTATIONS THE FOOD DISTRIBUTOR'S STOCK FELL 12 OR 350 TO 2675 BONDS LEHMAN BROTHERS TREASURY INDEX 550446 OFF 992 COMMODITIES OIL 1423 A BARREL OFF 18 CENTS DOW JONES FUTURES INDEX 14032 UP 034 SPOT INDEX 12451 OFF 029 DOLLAR 10955 YEN OFF 030 17093 MARKS OFF 00077 9312170038 931217 BUSINESS BRIEF RELIANCE ELECTRIC CO COMPANY PLANS JOB CUTS 4THQUARTER PRETAX CHARGE RELIANCE ELECTRIC CO SAID IT WILL CUT ABOUT 500 JOBS OR NEARLY 4 OF ITS WORK FORCE AS IT RESTRUCTURES TO CUT COSTS THE JOB CUTS WILL FORCE THE COMPANY TO TAKE AN 115 MILLION OR 14 CENTS A SHARE PRETAX CHARGE IN THE FOURTH QUARTER IN THE YEAREARLIER PERIOD RELIANCE IN CLEVELAND EARNED 14 MILLION OR 23 CENTS A SHARE THE RESTRUCTURING INCLUDES SHUTTING A PLANT IN SOUTH CAROLINA THAT MAKES EQUIPMENT FOR THE TELEPHONE INDUSTRY SUCH AS CONNECTION DEVICES AND CLOSURES IT EMPLOYS 300 RELIANCE WILL SHIFT PRODUCTION TO OTHER PLANTS INCREASED GLOBAL COMPETITION AND EXCESS CAPACITY IN MANY OF OUR END MARKETS COUPLED WITH THE PERSISTENT SLOW GROWTH LOWINFLATION ECONOMY HAVE ACCELERATED THE NEED TO SIGNIFICANTLY LOWER OUR MANUFACTURING AND ENGINEERING COSTS THE COMPANY SAID 9312170037 931217 BUSINESS BRIEF GULL LABORATORIES INC QUARTERLY LOSS IS EXPECTED BECAUSE OF 400000 CHARGE GULL LABORATORIES INC SAID IT WILL POST A FOURTHQUARTER LOSS BECAUSE OF A 400000 RESTRUCTURING CHARGE THE SALT LAKE CITY MEDICAL PRODUCTS COMPANY SAID THE CHARGE WOULD COVER A 21 CUT IN ITS BELGIAN WORK FORCE SETTING THE STAGE FOR SIGNIFICANT EARNINGS GROWTH IN 1994 IN THE FOURTH QUARTER A YEAR AGO THE COMPANY EARNED 140000 OR THREE CENTS A SHARE ON REVENUE OF 21 MILLION 9312170036 931217 BUSINESS BRIEF INTERNATIONAL BUSINESS MACHINES NATIONAL BANK OF CANADA TO SHIFT SERVICES TO UNIT NATIONAL BANK OF CANADA MONTREAL SAID IT AGREED IN PRINCIPLE TO TRANSFER A MAJOR PART OF ITS INFORMATIONPROCESSING SERVICES TO A CANADIAN UNIT OF INTERNATIONAL BUSINESS MACHINES CORP TERMS OF THE AGREEMENT ARE TO BE NEGOTIATED BY APRIL 1 BUT OFFICIALS OF THE COMPANIES SAID IT WOULD BE WORTH MORE THAN 100 MILLION CANADIAN DOLLARS US75 MILLION A YEAR FOR AS MUCH AS 10 YEARS IBM CANADA AND ITS MAJORITYOWNED ISM INFORMATION SYSTEMS MANAGEMENT CORP UNIT WILL TAKE ON HOSTCOMPUTER OPERATIONS MANAGEMENT OF TELECOMMUNICATIONS NETWORKS AND OTHER SERVICES ISM ALSO WILL ACQUIRE THE BUILDING CURRENTLY HOUSING THE BANK'S MAIN DATAPROCESSING SITE AND ASSUME CHARGE OF 350 EMPLOYEES NATIONAL BANK SAID IT WOULD RECORD A PRETAX GAIN OF MORE THAN C25 MILLION FROM SALE OF THE BUILDING THE SALE PRICE WASN'T DISCLOSED THE COMPANIES SAID THE ARRANGEMENT IS BELIEVED TO BE THE LARGEST OF ITS KIND BY A CANADIAN BANK SUCH OUTSOURCING OF DATAPROCESSING SERVICES HAS BECOME INCREASINGLY COMMON IN THE US BANKING INDUSTRY AS A WAY TO HELP CUT COSTS 9312170035 931217 PARAMOUNT BIDS TIGHTEN AS SHARES OF VIACOM RISE BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE GAP BETWEEN THE RIVAL BIDS IN THE CONTEST FOR PARAMOUNT COMMUNICATIONS INC TIGHTENED YESTERDAY AFTER VIACOM INC'S SHARES ROSE ON A BUY RECOMMENDATION BY SALOMON BROTHERS INC AND REPORTS THAT BLOCKBUSTER ENTERTAINMENT INC MAY INVEST MORE MONEY IN VIACOM TO HELP FINANCE A HIGHER BID WITH ONLY TWO BUSINESS DAYS LEFT BEFORE THE MONDAY BIDDING DEADLINE SET BY PARAMOUNT THE SPURT IN VIACOM'S STOCK PRICE PUSHED THE VALUE OF THE CABLETELEVISION CONCERN'S TWOSTEP CASHANDSTOCK OFFER FOR THE ENTERTAINMENT AND PUBLISHING COMPANY TO 96 BILLION OR 8020 A SHARE THAT COMPARED WITH A VALUE OF 99 BILLION OR 8264 A SHARE FOR THE RIVAL STOCKANDCASH OFFER BY QVC NETWORK INC IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PARAMOUNT SHARES CLOSED AT 8125 UP 25 CENTS VIACOM'S BID STARTED THE DAY ROUGHLY 500 MILLION LESS THAN THE OFFER BY QVC WHICH HAD HELD A CLEAR LEAD WITH ITS HIGHER OFFER SINCE IT PREVAILED IN A DELAWARE COURT CHALLENGE TO THE FRIENDLY MERGER DEAL BETWEEN PARAMOUNT AND VIACOM WALL STREET TRADERS YESTERDAY SPECULATED THAT BOTH HOMESHOPPING GIANT QVC AND VIACOM WOULD SWEETEN THE TERMS OF THEIR BIDS FURTHER POSSIBLY BY GETTING MORE CASH FROM THEIR RESPECTIVE BACKERS UNDER FORMAL BIDDING PROCEDURES ESTABLISHED BY PARAMOUNT EARLIER THIS WEEK CLOSED BIDS ARE TO BE SUBMITTED ON MONDAY QVC HAS ALREADY PUBLICLY PROTESTED THE BIDDING PROCEDURES CALLING THEM UNFAIR IN A LETTER TO PARAMOUNT ADVISERS VIACOM HAS PRIVATELY EXPRESSED DISSATISFACTION WITH THE BIDDING PROCESS AS WELL PEOPLE FAMILIAR WITH THE SITUATION SAID PARAMOUNT SAID IT WILL STUDY QVC'S CONCERNS AND ADJUST THE PROCEDURES IF NECESSARY VIACOM DECLINED COMMENT AND BLOCKBUSTER OFFICIALS COULDN'T BE REACHED BLOCKBUSTER HAS INVESTED 600 MILLION IN THE VIACOM OFFER AND NYNEX CORP HAS SEPARATELY INVESTED 12 BILLION NYNEX WAS ALSO SCHEDULED TO MEET WITH VIACOM LAST NIGHT ACCORDING TO PEOPLE CLOSE TO THE REGIONAL TELEPHONE COMPANY ABOUT POSSIBLY INCREASING ITS INVESTMENT NYNEX DECLINED COMMENT THE VALUE OF VIACOM'S OFFER CLIMBED AS ITS CLASS B SHARES ROSE 250 TO CLOSE AT 46 IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING THAT CAME AFTER SALOMON BROTHERS RECOMMENDED THAT ITS CLIENTS ACQUIRE THE STOCK IN A REPORT TITLED VIACOM INC PROGRAMMER OF THE MULTIMEDIA SUPERHIGHWAY SALOMON ANALYST FREDERICK W MORAN WROTE THAT VIACOM IS AN ATTRACTIVE STOCK WHETHER IT SUCCEEDS OR FAILS IN THE BATTLE FOR PARAMOUNT IN A PRESENTATION TO ANALYSTS LAST WEEK VIACOM OFFICIALS STRESSED REPEATEDLY THAT ITS PROSPECTS WERE STRONG WITH OR WITHOUT THE PARAMOUNT DEAL QVC HAS TENTATIVELY SCHEDULED A BOARD MEETING FOR THE WEEKEND TO PUT TOGETHER ITS FORMAL BID UNDER THE PARAMOUNT DEADLINE SOME ON WALL STREET SPECULATED THAT ONE OF QVC'S INVESTORS IN THE DEAL BELLSOUTH CORP MIGHT INVEST MORE MONEY THOUGH QVC HAS BEEN RELUCTANT FOR THE REGIONAL TELEPHONE COMPANY TO PLAY A LARGER ROLE BELLSOUTH OFFICIALS DECLINED TO DISCUSS THE SITUATION ON THE NASDAQ STOCK MARKET QVC SHARES CLOSED AT 4125 UP 25 CENTS 9312170034 931217 FORD PLANS SHARP BOOST IN SHIPMENTS BETWEEN MEXICO THE US AND CANADA BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH MARKING THE FIRST MAJOR PRODUCTION SHIFTS BY THE US AUTO INDUSTRY SINCE THE NORTH AMERICAN FREE TRADE AGREEMENT WAS APPROVED FORD MOTOR CO SAID IT WILL SHARPLY INCREASE SHIPMENTS INTO AND OUT OF MEXICO FROM THE US AND CANADA WITH NAFTA'S DISMANTLING OF TARIFF AND NONTARIFF BARRIERS EFFECTIVE JAN 1 FORD SAID IT EXPECTS ITS EXPORTS TO MEXICO FROM THE US AND CANADA TO INCREASE TO ABOUT 25000 VEHICLES NEXT YEAR FROM 1500 THIS YEAR GENERAL MOTORS CORP AND CHRYSLER CORP ALSO EXPECT TO BOOST EXPORTS TO MEXICO ALL TOGETHER US VEHICLE EXPORTS TO MEXICO ARE EXPECTED TO RISE TO 60000 A YEAR AFTER NAFTA FROM 6000 A YEAR BEFORE FORD SAID ITS MOVES WILL RESULT IN THE HIRING OF 550 MORE WORKERS NEARLY ALL OF THEM IN THE US BUT A FEW IN CANADA AND NEW BUSINESS WITH MEXICO IS EXPECTED TO GENERATE ENOUGH OVERTIME TO AMOUNT TO THE EQUIVALENT OF 450 MORE JOBS FORD SAID 300 LAIDOFF MEXICAN AUTO WORKERS WILL BE CALLED BACK WHEN IT TURNS ITS CUAUTITLAN PLANT IN SUBURBAN MEXICO CITY INTO A SECOND NORTH AMERICAN SOURCE OF A NEW LINE OF COMPACT CARS WHICH DEBUTS NEXT YEAR ABOUT 50000 OF THE PLANT'S EXPECTED ANNUAL OUTPUT OF 75000 FORD CONTOURS AND MERCURY MYSTIQUES ARE TO BE EXPORTED TO THE US AND CANADA THOSE JOBS WOULDN'T HAVE BEEN CREATED IN THE US BECAUSE OF A STRUCTURAL PROBLEM EVEN THOUGH FORD PROJECTED A NEED FOR THE ADDITIONAL CARS THE COMPANY COULDN'T PRODUCE THEM AT ITS KANSAS CITY MO PLANT WHICH WILL BE ABLE TO BUILD 250000 CARS A YEAR AFTER PRODUCTION STARTS IN JULY AND PROJECTED DEMAND WASN'T ENOUGH TO JUSTIFY A SECOND US PLANT THUS NAFTA SOLVES A DILEMMA FOR US A FORD SPOKESMAN SAID FORD ALSO BUILDS THE COMPACT CAR IN EUROPE WHERE IT IS CALLED THE MONDEO THE FORD EXPANSION IS GOOD NEWS FOR THE MEXICAN ECONOMY WHICH CONTRACTED IN THE THIRD QUARTER AND ISN'T EXPECTED TO DO WELL THIS QUARTER IN THE FIRST NINE MONTHS OF 1993 AUTO PRODUCTION IN MEXICO FELL 11 ACCORDING TO THE TREASURY MINISTRY FORD SAID IT WILL INVEST ABOUT 175 MILLION TO REARRANGE THE PLANT AND ADD THE CONTOUR/MYSTIQUE LINE DROPPING PRODUCTION OF THUNDERBIRD AND COUGAR LUXURY COUPES THE CUAUTITLAN PLANT WILL CONTINUE TO BUILD FSERIES PICKUP TRUCKS AND GRAND MARQUIS FULLSIZED SEDANS FORD SAID IT WILL INVEST A FURTHER 25 MILLION IN VARIOUS US AND CANADA COMPONENTS PLANTS TO SUPPORT THE NEW MEXICAN PRODUCTION THE NEW JOBS AND ADDED OVERTIME IN THE US AND CANADA WILL COME PARTLY FROM PRODUCTION OF ENGINES TRANSMISSIONS BODY STAMPINGS AND OTHER PARTS FOR CONTOUR/MYSTIQUE PRODUCTION IN MEXICO FORD SAID THE REST WILL REFLECT STEPPEDUP PRODUCTION OF VEHICLES IN THE US AND CANADA FOR EXPORT FORD EXPECTS ITS EXPORT VOLUME TO MEXICO TO HIT 50000 VEHICLES A YEAR BY 1996 DIANNE SOLIS IN MEXICO CITY CONTRIBUTED TO THIS ARTICLE 9312170033 931217 WHO'S NEWS MOTOROLA INC NAMES WEISZ CHAIRMAN GALVIN PRESIDENT AND TOOKER ITS CHIEF BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL IN A VOTE OF CONFIDENCE FOR ITS MANAGEMENT MOTOROLA INC NAMED THREE MEMBERS OF ITS INTERIM MANAGEMENT TEAM TO PERMANENT POSTS AS ITS TOP EXECUTIVES THE ELECTRONICS GIANT SAID IT NAMED GARY TOOKER CHIEF EXECUTIVE OFFICER AND VICE CHAIRMAN CHRISTOPHER GALVIN GRANDSON OF MOTOROLA'S FOUNDER WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER AND WILLIAM J WEISZ WAS NAMED CHAIRMAN THE APPOINTMENTS WERE ANYTHING BUT A SURPRISE THE THREE WERE NAMED TO INTERIM POSITIONS IN AN OFFICE OF THE CHIEF EXECUTIVE IN OCTOBER ASSUMING THE DUTIES OF GEORGE MC FISHER THE CHIEF EXECUTIVE OFFICER WHO UNEXPECTEDLY RESIGNED TO JOIN EASTMAN KODAK CO AS CEO IN NOVEMBER MOTOROLA SAID IT WOULDN'T LOOK OUTSIDE FOR A NEW TOP EXECUTIVE AND OFFICIALLY DECLARED ITS SUPPORT FOR THE THREEMAN MANAGEMENT TEAM THEY'RE STEAMING AS BEFORE AS WE USED TO SAY IN THE NAVY SAID JOHN GERAGHTY AN ANALYST AT FIRST BOSTON IT'S EXACTLY WHAT I THOUGHT THEY WOULD DO INDEED THE APPOINTMENTS AREN'T LIKELY TO HAVE ANY IMMEDIATE AFFECT ON THE THE COMPANY'S DAYTODAY OPERATIONS IN PART BECAUSE THE COMPANY'S OPERATIONS ARE ALREADY DECENTRALIZED MOTOROLA'S THREE MAIN DIVISIONS SEMICONDUCTORS WIRELESSRADIO EQUIPMENT AND GENERAL SYSTEMS INCLUDING CELLULAR PHONES AND COMPUTERS ARE RUN BY STRONG LEADERS WITH EXPERIENCED MANAGERS UNDER THEM INVESTORS TOOK THE ANNOUNCEMENT IN STRIDE MOTOROLA'S STOCK CLOSED AT 8925 DOWN 50 CENTS IN TRADING ON THE NEW YORK STOCK EXCHANGE MR TOOKER AN ELECTRICAL ENGINEER BY TRAINING BECAME THE ODDSON FAVORITE FOR THE CEO SPOT WHEN HE ASSUMED THE ROLE OF ACTING CHIEF EXECUTIVE HE HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER A 31YEAR MOTOROLA VETERAN WHO ROSE THROUGH THE RANKS OF THE SEMICONDUCTOR BUSINESS TO BECOME PRESIDENT IN 1990 MR TOOKER 54 YEARS OLD IS PRAISED AS A TECHNOLOGICALLY ASTUTE BUT TOUGH EXECUTIVE ROGER ROSS A FORMER MOTOROLA EXECUTIVE WHO IS CHIEF EXECUTIVE OF ROSS TECHNOLOGY INC IN AUSTIN TEXAS DESCRIBES MR TOOKER AS A SPECIALIST IN SEMICONDUCTORMANUFACTURING PROCESSES WHO WORKED HIS WAY FROM THE BOTTOM OF MOTOROLA TO THE VERY TOP HE'S A GREAT MOTIVATOR AND A GREAT TEAM PLAYER WHICH IS THE ESSENCE OF MOTOROLA SAID JACK BEEDLE PRESIDENT OF INSTAT INC A MARKET RESEARCH FIRM IN SCOTTSDALE ARIZ CONVENTIONAL WISDOM INSIDE MOTOROLA IS THAT MR TOOKER EVENTUALLY WILL BE SUCCEEDED BY MR GALVIN 43 WHO WAS PREVIOUSLY SENIOR EXECUTIVE VICE PRESIDENT AND ASSISTANT CHIEF OPERATING OFFICER MR GALVIN SON OF FORMER CEO ROBERT GALVIN AND THE GRANDSON OF COMPANY FOUNDER PAUL GALVIN IS CREDITED ALONG WITH MR FISHER WITH THE TURNAROUND IN THE 1980S OF THE COMPANY'S PAGER OPERATIONS MR WEISZ 66 WHO RETIRED AS MOTOROLA'S CEO IN 1988 AFTER A 40YEAR CAREER WITH THE COMPANY WAS A COMPANY VICE CHAIRMAN UNTIL STEPPING INTO THE INTERIM CHAIRMANSHIP WHEN MR FISHER LEFT MOTOROLA SAID THE CHAIRMAN'S POST IS BEING SEPARATED FROM MANAGEMENT AND THAT THE CHAIRMAN WILL NO LONGER BE CONSIDERED AN EMPLOYEE OF THE COMPANY BUT A MEDIATOR BETWEEN THE CEO AND THE BOARD THE NEW EXECUTIVES TAKE THEIR POSTS AT A TIME WHEN MOTOROLA'S MAIN WORRY IS HOW TO EXPLOIT HUGE GROWTH OF ITS TRADITIONAL MARKETS THE WORLD'S MARKETS FOR MOTOROLA'S SPECIALITIES PAGERS AND CELLULAR TELEPHONES ARE BOOMING WHILE INDUSTRIALIZED COUNTRIES ARE RAPIDLY EXPANDING THEIR USE OF MOBILE COMPUTING AND OTHER TECHNOLOGIES DON CLARK CONTRIBUTED TO THIS ARTICLE 9312170032 931217 TOYS 'R' US DECIDES TO PULL NIGHT TRAP FROM STORE SHELVES CONGRESSIONAL SCRUTINY OF SEX VIOLENCE IN VIDEO GAMES COMPLAINTS SPUR MOVE BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL CONGRESSIONAL SCRUTINY OF SEX AND VIOLENCE IN VIDEO GAMES CLAIMED ITS FIRST VICTIM TOYS R US INC THE US'S LARGEST TOY RETAILER HAS DECIDED TO STOP SELLING NIGHT TRAP A VIDEO GAME BY SEGA ENTERPRISES LTD THAT FEATURES BARELY CLAD FEMALES IN BLOODY SCENARIOS THE RETAILER BASED IN PARAMUS NJ SAID LAST WEEK'S CONGRESSIONAL HEARING ON GRAPHIC VIDEO GAMES AND COMPLAINTS FROM PARENTS BEFORE AND AFTER THE HEARINGS SPURRED ITS DECISION NIGHT TRAP WAS A GOOD SELLER FOR US BUT CORPORATE EXECUTIVES OF THE COMPANY DECIDED TO REMOVE THE GAME FROM THE SHELF SAID A TOYS R US SPOKESWOMAN INVENTORY WILL BE RETURNED TO SEGA BASED IN REDWOOD CITY CALIF IT ISN'T CLEAR IF OTHERS WILL PULL THE GAME SEGA SAID IT HASN'T RECEIVED ANY INDICATION OF EJECTIONS BY OTHER RETAILERS SINCE ITS INTRODUCTION LAST CHRISTMAS MORE THAN 100000 COPIES OF NIGHT TRAP HAVE BEEN SOLD THE GAME IS PLAYED ON SEGA'S CDROM VIDEO GAME SYSTEM AND RETAILS FOR ABOUT 50 ANOTHER CONTROVERSIAL GAME MORTAL KOMBAT SEEMS TO BE SECURE ON THE SHELVES AT LEAST FOR THIS CHRISTMAS TOYS R US SAID IT HAS NO PLANS TO DISCONTINUE SELLING THE GAME A KMART CORP SPOKESWOMAN SAYS THAT THE CHAIN DOESN'T CARRY NIGHT TRAP BUT PLANS TO CONTINUE SELLING MORTAL KOMBAT MORTAL KOMBAT WHICH MADE ITS PREMIERE IN OCTOBER AND RUNS ON SEGA AND NINTENDO LTD MACHINES HAS BY FAR OUTRUNG NIGHT TRAP AT THE CASH REGISTER JOHN TAYLOR A VIDEO GAME ANALYST FOR LH ALTON & CO ESTIMATES SALES OF OVER FOUR MILLION UNITS TOTALING MORE THAN 100 MILLION BY THE END OF THIS YEAR BOTH GAMES WERE SINGLED OUT IN LAST WEEK'S DEBATE BETWEEN LAWMAKERS AND INDUSTRY EXECUTIVES ON THE NEED FOR A RATINGS AGENCY TO MONITOR SEXUAL AND VIOLENT THEMES IN VIDEO GAMES IN NIGHT TRAP PLAYERS DEFEND A GROUP OF BARELY DRESSED SORORITY SISTERS AGAINST ZOMBIES WHEN THE ZOMBIES WIN THEY SUCK THE STUDENTS' BLOOD WITH A GIANT SYRINGE IN SEGA'S MORTAL KOMBAT PLAYERS GET TO RIP OUT AN OPPONENT'S HEART OR SPINAL COLUMN AND BASH HIS BRAINS NINTENDO'S VERSION WHICH IS A BIT TAMER THAN SEGA'S ISN'T SELLING AS WELL NINTENDO SAID AT THE HEARING SEGA'S MR WHITE SAYS THAT THE COMPANY HAS NO PLANS TO DISCONTINUE PRODUCTION OF NIGHT TRAP OR MORTAL KOMBAT THERE CONTINUES TO BE A MISPERCEPTION ABOUT OUR INDUSTRY THAT IT IS A KIDDIEBASED INDUSTRY SAYS MR WHITE BUT IN REALITY WE HAVE MANY ADULTS PLAYING OUR GAMES AS WELL DESPITE THE RECENT CONTROVERSY THE COMPANY HAS NO PLANS TO LIMIT ITS ABILITY TO PRODUCE A VARIETY OF SOFTWARE HE SAID ONE NEW ADULTORIENTED GAME FROM SEGA IS A VIRTUAL REALITY BOXING MATCH IN WHICH PUNCHES BY THE PLAYER SNAP BACK THE HEAD OF HIS OPPONENT SEGA SAYS IT WILL CONTINUE TO KEEP A MIX IN FUTURE PRODUCTION SO THAT ABOUT 4 OF ITS GAMES WILL BEAR THE COMPANY'S OWN INTERNAL RATING FOR PEOPLE 17 AND OLDER WITH THE REST RATED FOR GENERAL AUDIENCES OR THOSE 13 AND OLDER 9312170031 931217 CREDIT RATINGS LORAL CORP NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT LOWERED ITS RATINGS TO BAA2 FROM BAA1 ON ABOUT 500 MILLION OF LORAL DEBT REFLECTING THE DEFENSEELECTRONICS COMPANY'S PROPOSED 157 BILLION ACQUISITION OF INTERNATIONAL BUSINESS MACHINES CORP'S FEDERAL SYSTEMS CO UNIT MOODY'S SAID THE INTERMEDIATETERM EFFECT OF THIS ACQUISITION WILL BE SIGNIFICANTLY HIGHER DEBT LEVELS AND REDUCED FINANCIAL FLEXIBILITY FOR LORAL IN THE LONG TERM OPERATING SYNERGIES AND LORAL'S GOOD TRACK RECORD FOR ASSIMILATING SIZABLE ACQUISITIONS WILL IMPROVE THE COMBINED ENTITY'S BUSINESS AND CASHFLOW POTENTIAL THE RATINGS AGENCY PREDICTED THAT LORAL WILL BE ABLE TO GENERATE SUFFICIENT CASH FLOWS TO SIGNIFICANTLY REDUCE THE ACQUISITION DEBT OVER THE NEXT FEW YEARS MGM GRAND HOTEL FINANCE CORP STANDARD & POOR'S CORP SAID IT RAISED ITS RATINGS ON THIS COMPANY'S FIRST MORTGAGE NOTES TO DOUBLEBMINUS FROM SINGLEBPLUS THE RATINGS AGENCY SAID THE UPGRADE REFLECTS MGM GRAND INC'S COMPLETION OF ITS 1 BILLION LAS VEGAS HOTELCASINO AND THEME PARK MGM GRAND HOTEL FINANCE IS A SUBSIDIARY OF MGM GRAND INC OCCIDENTAL PETROLEUM CORP LOS ANGELES MOODY'S INVESTORS SERVICE INC SAID IT PLACED UNDER REVIEW FOR POSSIBLE DOWNGRADE ITS RATINGS ON 54 BILLION OF SECURITIES OF THIS NATURAL RESOURCES CHEMICALS AND FOOD PROCESSING COMPANY UNDER REVIEW ARE THE BAA2 RATING FOR LONGTERM DEBT THE BAA3 RATING FOR PREFERRED STOCK AND THE PRIME2 RATING FOR COMMERCIAL PAPER CONCURRENTLY MOODY'S ASSIGNED A BAA3 RATING AND PLACED UNDER REVIEW FOR POSSIBLE DOWNGRADE THE COMPANY'S PROPOSED 550 MILLION OFFERING OF CUMULATIVE INDEXED CONVERTIBLE PREFERRED STOCK MOODY'S CITED ITS CONCERN OVER OCCIDENTAL'S WEAK OPERATING EARNINGS THE RECENT SHARP DECLINE IN CRUDE OIL PRICES AND A CONTINUING DEPRESSED OUTLOOK FOR PETROCHEMICAL PROFIT MARGINS DESPITE THE COMPANY'S RESTRUCTURING IN 1991 OCCIDENTAL'S FINANCIAL LEVERAGE REMAINS ELEVATED AND ITS CASH FLOW PROTECTION MEASURES WEAK MOODY'S SAID OCCIDENTAL HAD NO IMMEDIATE COMMENT