DALLAS PSYCHOTHERAPIST CARL ANDERSON IS SO POPULAR THIS TIME OF YEAR THAT PEOPLE WAIT AS LONG AS FOUR HOURS FOR AT MOST A TWOMINUTE APPOINTMENT IN HIS COZY OFFICE WITH THE BIG GREEN EASY CHAIR AND THE REDBRICK FIREPLACE PEOPLE CONFESS FAMILY SECRETS THEIR FEARS AND THEIR MOST FERVENT LONGINGS AND THE GOOD DOCTOR DISHES OUT PRAISE HUGS AND REASSURANCE IN EQUAL MEASURE HIS FEE FIVE DOLLARS PER SESSION THE COST OF A COLOR PHOTO OF THE ENCOUNTER IN THIS LINE OF WORK IT OBVIOUSLY HELPS THAT DR ANDERSON IS CHUBBY HAS NATURALLY ROSY CHEEKS A FOOTLONG CURLY BLOND BEARD AND A DISTINCT TWINKLE IN HIS BLUE EYES YOU CAN THINK HE'S PRETEND IF YOU WANT TO NANCY LAIRD'S FIVEYEAROLD DAUGHTER INSISTS AFTER A VISIT WITH DR ANDERSON A K A SANTA CLAUS BUT I THINK HE'S REAL DR ANDERSON THE OFFICIAL SANTA CLAUS AT TONY NORTHPARK CENTER HERE IS A SHOPPINGMALL SANTA WITH A TWIST AND A LOT MORE GOING FOR HIM THAN STURDY KNEES DR ANDERSON WHO HOLDS A PHD DEGREE IN PSYCHOLOGY HAS A PRIVATE PRACTICE IN AUSTIN TEXAS SO HE COMES TO HIS CHRISTMAS CALLING WITH A PECULIAR MINDSET THAT SEEMS TO MAKE HIM PERFECT FOR THE JOB THUS SESSIONS WITH DR CLAUS AREN'T JUST RECITATIONS OF GIFT DEMANDS HE WANTS THEM TO BE LIFEAFFIRMING EXPERIENCES I GET A SNAPSHOT OF THAT CHILD'S LIFE AND IT'S NOT ALWAYS A PRETTY PICTURE HE SAYS I LET KIDS KNOW THEY ARE GOOD AND SOMETIMES I HAVE TO HELP THEM DISCOVER THE GOOD THINGS THEY DID THE 40YEAROLD DR ANDERSON HAS BEEN PLAYING THIS IMPORTANT ROLE FOR 11 CHRISTMAS SEASONS SINCE HE STARTED OUT AS AN IMPECUNIOUS GRADUATE STUDENT DOING SANTA AT AN AUSTIN MALL AT THE TIME HE WAS TRYING TO DECIDE ON A DISSERTATION TOPIC EITHER ALCOHOLISM AMONG THE ELDERLY OR THE STRESS OF INFERTILITY ON MARRIED COUPLES AFTER HIS FIRST SANTA GIG HE DECIDED INSTEAD TO DO HIS THESIS ON HOW CHILDREN REACT WHEN THEY LEARN THE TRUTH ABOUT SANTA THE SHORT ANSWER THEY TAKE IT WELL BUT THEIR PARENTS GET DEPRESSED HE WAS LURED TO HIS PRESENT POSITION AS SANTA IN 1989 HE SAYS BY AN OFFER SO SWEET THAT HE DOESN'T NEED TO DO ALL THAT MUCH WORK THE REST OF THE YEAR THE SITUATION INCLUDES SOME COMMERCIAL AND TV WORK ON THE SIDE HE WON'T SAY WHAT IT ALL PAYS BUT HE DOES SO WELL IN ONE MONTH'S WORK HERE THAT HE HAS BEEN ABLE TO LIMIT HIS PROFESSIONAL PRACTICE THE REST OF THE YEAR TO JUST A FEW PATIENTS AND SOME PARENTING PROGRAMS IN HIS SPARE TIME HE HAS TAKEN UP PROFESSIONAL STORYTELLING FOR CHILDREN AND IS ANGLING FOR THE EDMUND GWENN ROLE IN NEXT YEAR'S PLANNED REMAKE OF THE 1947 CHRISTMAS MOVIE MIRACLE ON 34TH STREET PLAYING SANTA PROVIDES RESEARCH MATERIAL TOO AND A TINY CHANCE TO HELP DR ANDERSON SAYS HE SEES ABOUT 300 CHILDREN A DAY NORTHPARK OFFICIALS ESTIMATE HE GENTLY QUIZZES YOUNGER CHILDREN ABOUT WHAT THEY HAVE DONE THAT WAS GOOD HE TELLS THEM LITTLE STORIES THAT HAVE MORALS TO THEM AND USING THE RUSE OF LISTING WHAT THEY WANT FOR CHRISTMAS ON THE NORTH POLE TOY LIST HE RECORDS THEIR THOUGHTS IN A JOURNAL HE HAS FILLED 11 NOTEBOOKS SO FAR ONE OF HIS AMBITIONS IS TO SOMEDAY PUBLISH HIS SANTA MEMOIRS CONTRARY TO POPULAR OPINION YOUNGSTERS TODAY AREN'T MORE SPOILED OR TROUBLED OR CYNICAL DR ANDERSON INSISTS MANY ASK FOR JUST ONE GIFT AND WILL SOMETIMES OFFER THEIR OLD TOYS TO SANTA TO TAKE TO NEEDY OR HOMELESS CHILDREN KIDS TEND TO PICK UP ON WHAT WE'RE FOCUSING ON CULTURALLY HE SAYS BUT HE ALSO SEES CHILDREN WHO ARE ABUSED OR HANDICAPPED OR SICK INCLUDING A BOY WHO ASKED FOR A MICROPHONE SO HIS PARENTS COULD HEAR HIM WHEN THEY ARE FIGHTING DR ANDERSON SEES SANTA AS PREVENTIVE MEDICINE I TRY TO MAKE SURE THEY KNOW SANTA CARES HE SAYS EVEN WHEN THEY MIGHT THINK SOMEONE ELSE DOESN'T AN HOUR BEFORE ONE OF DR ANDERSON'S SESSIONS IN SANTA'S CORNER OF THIS HUGE MALL PARENTS COMPETE FOR FRONTROW SEATS AND OTHERS FALL IN BEHIND WITH A PUFF OF SMOKE SANTA STUMBLES OUT OF THE FIREPLACE TO SHRIEKS AND APPLAUSE CARLA TARRANT HAS MADE THE TRIP FROM OUTLYING FORNEY TEXAS ON THE RECOMMENDATION OF A FRIEND SO HER TWOYEAROLD COULD SEE THIS PARTICULAR SANTA HE GETS DOWN ON A CHILD'S LEVEL OF UNDERSTANDING BUT IT'S JUST AS FASCINATING FOR US TOO THE MALL DOESN'T ADVERTISE SANTA'S PHD BUT THE WORD HAS GOTTEN AROUND ABOUT HALF THE PARENTS IN LINE SAY THEY KNEW ABOUT DR ANDERSON'S BACKGROUND WITH CHILD ON KNEE DR ANDERSON WORKS HARD AT DEVELOPING AN IDEAL CHILDHOOD FANTASY WORLD CHILDREN OFTEN ASK ABOUT THE NORTH POLE WHICH THE PSYCHOLOGIST PROMOTES AS A SAFE AND WARM PLACE HE TELLS ONE CHILD THAT HE KEEPS A DRAGON NAMED JEREMY THERE BECAUSE THERE AREN'T MANY SAFE PLACES FOR DRAGONS HE EXPLAINS LATER I WANT TO STIMULATE CREATIVITY AND IMAGINATION HE ALSO WANTS TO BOLSTER SELFCONFIDENCE WHEN HE ASKS A BOY WHAT HE HAS DONE THIS YEAR THAT WAS GOOD THE REPLY IS TERSE NOTHING THE BOY SAYS WITH A SHRUG SANTA REFUSES TO ACCEPT THAT ANSWER AND HELPS THE CHILD REMEMBER SOME SMALL DEEDS LIKE HELPING HIS MOTHER AT DINNER TIME THE BOY SMILES I THINK OF SANTA AS A REPRESENTATIVE OF THINGS AS THEY SHOULD BE DR ANDERSON SAYS LATER SOME PARENTS THOUGH TRY TO USE SANTA AS A BEHAVIORMODIFICATION DEVICE DR ANDERSON SAYS THREE CHILDREN THIS YEAR HAVE OFFERED SANTA THEIR PACIFIERS AT PARENTS' URGING THE MOST COMMON ISSUE FOR PARENTS HE SAYS IS GETTING THE CHILD TO SLEEP IN HIS OR HER OWN BED SANTA TRIES TO BE ENCOURAGING I KNOW YOU'RE TRYING HARD HE TELLS ONE CHILD DR SANTA ATTEMPTS TO QUICKLY EVALUATE THE STATE OF THE CHILD AND TO BE SUPPORTIVE HE SLOWLY DRAWS IN FRIGHTENED CHILDREN REASSURING ANXIOUS PARENTS THAT FEAR IS NORMAL AND ALWAYS CONGRATULATING THE CHILD FOR BEING COURAGEOUS NO MATTER HOW TEARFUL THE PHOTO SESSION IF THE CHILD IS LOUD SANTA GETS LOUD IF THE CHILD IS IN MUTE SANTA SHOCK SANTA TELLS PLAYFUL STORIES IT'S A MINIATURE VERSION OF THE APPROACHES YOU USE IN THERAPY DR ANDERSON SAYS MEET THEM WHERE THEY ARE AND GIVE THEM WHAT THEY NEED WITH OLDER CHILDREN FIVE AND UP DR ANDERSON TRIES TO SUBTLY PLANT THE SEEDS OF GIVING RATHER THAN RECEIVING HE ASKS BENIGN QUESTIONS SUCH AS WHAT DO YOU LIKE BEST ABOUT CHRISTMAS IN ORDER TO MEASURE THE MATURITY OF THE CHILD WHEN A SEVENYEAROLD BLURTS OUT THE PRESENTS DR ANDERSON SHIFTS THE QUESTIONING HAVE YOU GOT PRESENTS PICKED OUT YET FOR OTHERS WHAT ARE YOU GOING TO GET MOM AND DAD HE ASKS AFTER A COUPLE OF TALES AND A MAGIC TRICK AT STORY TIME DR ANDERSON SHIFTS INTO THERAPIST SPEAK THIS IS THE SEASON OF GIVING HE SAYS SO GIVE YOURSELF A BIG HUG HE IMPLORES A CROWD OF YOUNGSTERS SEE HOW GOOD THAT FEELS YOU CAN DO THAT EVERY DAY YOU DON'T HAVE TO WAIT FOR THE HOLIDAYS 9312170029 931217 WORLD MARKETS RALLIES ON ASIAN BOURSES LIFT SEVERAL TO HIGHS LONDON STOCK PRICES SET SECOND RECORD IN A ROW A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARES JUMPED 17 THURSDAY ON SIGNS THE JAPANESE GOVERNMENT INTENDS TO MOVE FORWARD ON NEW ECONOMICSTIMULUS MEASURES LONDON PRICES SET A RECORD FOR THE SECOND DAY RUNNING ON GROWING ENTHUSIASM ABOUT BRITAIN'S ECONOMIC PROSPECTS FRANKFURT STOCKS RACED UP 13 RECOVERING SOME OF THE PREVIOUS DAY'S LOSSES HONG KONG STOCKS ROCKETED UP 4 TO A RECORD LED BY THE BANKING SECTOR SINGAPORE SHARES SCORED A SIXTH CONSECUTIVE ALLTIME HIGH THE TAIPEI AND MANILA MARKETS ALSO SET HIGHS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11043 UP 107 REFLECTING HIGHER MARKETS IN ALL REGIONS SHIPBUILDING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11375 UP 361 OR 33 WITH SASEBO HEAVY INDUSTRIES OF JAPAN POSTING A 46 GAIN IN ITS LOCAL CURRENCY CASINOS STOCKS TRAILED AT 21407 DOWN 319 OR 15 WITH RESORTS WORLD OF MALAYSIA SLIDING 51 IN LOCAL CURRENCY THE NIKKEI JUMPED FROM THE OPENING AS ARBITRAGERS TOOK ADVANTAGE OF GAINS A DAY EARLIER BY NIKKEIINDEX FUTURES IN CHICAGO ALSO WEDNESDAY JAPAN'S DIET OR PARLIAMENT PASSED A 709 BILLIONYEN 646 BILLION SUPPLEMENTARY BUDGET AND GOVERNMENT OFFICIALS INDICATED THAT A THIRD SUPPLEMENTARY BUDGET WAS BEING CONSIDERED NEWS REPORTS ALSO SAID NEW STIMULUS MEASURES SUCH AS A TAX CUT COULD BE ON THE WAY AS SOON AS NEXT WEEK BUT FOLLOWING THE ROUND OF ARBITRAGERELATED BUYING SHARES STEADIED AND TRADED IN A NARROW RANGE FOR THE REST OF THE SESSION ENCOUNTERING SELLING PRESSURE AS THE NIKKEI APPROACHED 18000 THE YEN'S SLIDE AGAINST OTHER MAJOR CURRENCIES HELPED ELECTRONICS SHARES CONTINUE TO POST GAINS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ASCENDED 324 POINTS JUST SHY OF 1 TO 33112 THE FT 30STOCK INDEX GAINED 272 POINTS OR 11 TO 24960 IN ONE OF THE MOST ACTIVE SESSIONS THIS YEAR VOLUME JUMPED TO 922 MILLION SHARES COMPARED WITH 753 MILLION SHARES A DAY EARLIER PRICES SURGED FROM THE OPENING BELL AND GAINS WERE LOGGED ACROSS THE BOARD THE MARKET WAS DRIVEN BY THE PERCEPTION THAT LENDING RATES WILL BE LOWERED SOON AND THAT CORPORATE EARNINGS WILL IMPROVE GIVEN RECENT SIGNS OF A STRENGTHENING ECONOMIC RECOVERY FOR BRITAIN LIQUIDITY REMAINED STRONG AND EVERY ATTEMPT AT PROFITTAKING WAS OVERCOME BY WILLING BUYERS STEPPING IN STILL THE RALLY WAS PARTLY SUPPORTED BY FUND MANAGERS' BUYING SOLID PERFORMERS TO ENSURE THAT THEIR HOLDINGS LOOK GOOD FOR THEIR YEAREND ACCOUNTING A PRACTICE CALLED WINDOW DRESSING IN FRANKFURT THE DAX 30STOCK INDEX ROSE 2675 POINTS TO 213745 AFTER FALLING 3927 THE PREVIOUS DAY BUT TRADING WAS QUIET AS THE MARKET AWAITED A DECISION ON INTEREST RATES BY THE GERMAN BUNDESBANK AFTER THE MARKET CLOSED THE CENTRAL BANK SAID IT LEFT ITS BENCHMARK RATES UNCHANGED AS INVESTORS HAD EXPECTED BECAUSE OF DATA EARLIER IN THE DAY THAT SHOWED A FASTERTHANEXPECTED RISE IN THE GERMAN MONEY SUPPLY EXCEEDING THE BUNDESBANK'S GOAL MOREOVER THE BANK SET A 1994 MONEYGROWTH TARGET THAT WAS STRICTER THAN HAD BEEN FORECAST REFLECTING LOWER POTENTIAL PRODUCTION IN WESTERN GERMANY FOLLOWING A YEARLONG SLIDE IN INDUSTRIAL INVESTMENT IN AMSTERDAM SHARES CLOSED BROADLY HIGHER DESPITE DECISIONS BY THE DUTCH AND GERMAN CENTRAL BANKS TO DEFER INTERESTRATE CUTS THE DUTCH MARKET WAS HELPED BY A STRONG OPENING ON WALL STREET AND BY OPTIONSDRIVEN TRADING IN MADRID EQUITIES ROSE IN A TECHNICAL RECOVERY FROM PREVIOUS SESSIONS' DECLINES ON WORRIES ABOUT RUSSIAN POLITICAL INSTABILITY LATE BUYING WAS TRIGGERED BY COVERING SHORT OR OVERSOLD POSITIONS AHEAD OF MORE GAINS EXPECTED IN THE NEXT FEW DAYS IN ZURICH STOCKS OVERCAME EARLY PROFITTAKING TO FINISH HIGHER SPURRED BY GOOD PERFORMANCES ON SEVERAL OTHER MARKETS IN HONG KONG SHARES SOARED 4 TO NEW HIGHS PROPELLED BY 44 SURGES FOR BANKING ISSUES AND COMMERCIAL AND INDUSTRIAL STOCKS FOLLOWING THE BOURSE'S 3 SLUMP IN THE TWO PREVIOUS SESSIONS SHARES JUMPED FROM THE OPENING MINUTES ON THE RECORD SALE OF A PLUM RESIDENTIAL SITE IN A HONG KONG GOVERNMENT AUCTION LATE WEDNESDAY VINDICATING DEVELOPERS' CONFIDENCE IN THE BRITISH COLONY'S PROPERTY MARKET PROPERTY STOCKS JUMPED 39 THE GAINS HELPED BY STRONG OVERSEAS BUYING CAME EVEN THOUGH SINOBRITISH RELATIONS ON HONG KONG'S POLITICAL FUTURE SAGGED TO NEW LOWS CAUSING WORRIES ABOUT ECONOMIC TIES IN SINGAPORE SHARES CLOSED MOSTLY HIGHER AND THE MAIN INDEX FINISHED AT A NEW HIGH ITS SIXTH IN A ROW MAKING ITS ADVANCE FOR THIS YEAR 50 DEALINGS WERE HEAVY AND PROFITTAKING WAS EASILY ABSORBED A FLOOD OF MONEY CONTINUED TO POUR IN FROM ABROAD AND BUYING WAS UNDERPINNED BY LOCAL INVESTORS WHO BELIEVE INTEREST RATES WILL REMAIN LOW IN THE COMING YEAR MAKING BANK INVESTMENTS LESS DESIRABLE IN TAIPEI PRICES JUMPED 33 TO A 22MONTH HIGH IN ACTIVE TRADING AS THE MARKET WAS BOOSTED BY A BUYING SPREE BY FOREIGN INSTITUTIONS AND BY THE SUCCESS OF WORLD TRADELIBERALIZATION TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE BENCHMARK INDEX HAS RALLIED 15 SINCE LAST SATURDAY IN MANILA SHARES CLIMBED 18 TO A RECORD IN LIVELY DEALINGS BUOYED BY BARGAIN HUNTING FOR ISSUES THAT HAVE STRONG EARNINGS POTENTIAL FOR NEXT YEAR THE MAIN INDEX WHICH LAST RECORDED A RECORD HIGH LAST TUESDAY HAS SOARED 108 THIS YEAR IN SEOUL STOCKS CLOSED HIGHER FOR THE THIRD STRAIGHT DAY ON CONTINUED UPWARD MOMENTUM OF BLUECHIP MANUFACTURERS 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 9312170028 931217 COMMODITIES LUMBER FUTURES PRICES AGAIN JUMP DAILY LIMIT AS WHOLESALERS STRUGGLE TO FIND SCARCE SUPPLIES BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO LUMBER FUTURES PRICES LEAPED THE DAILY PRICEMOVEMENT LIMIT FOR THE SECOND CONSECUTIVE DAY AS WHOLESALERS SCRAMBLED TO BUY INCREASINGLY SCARCE WOOD AT THE CHICAGO MERCANTILE EXCHANGE LUMBER FOR MARCH DELIVERY WAS UP 10 TO 43320 PER THOUSAND BOARD FEET AND SOME ANALYSTS ARE PREDICTING THAT LUMBER WILL ECLIPSE THE RECORD PRICE OF 49350 PER THOUSAND BOARD FEET THAT IT REACHED DURING A WILD RALLY LAST FEBRUARY I THINK IT WILL TOP THAT LEVEL SAID BUD MERRILL LUMBER ANALYST FOR SMITH BARNEY SHEARSON IN EUGENE ORE IT'S POSSIBLE IT WILL GO ABOVE 500 ONE REASON FOR THE CURRENT RALLY ANALYSTS SAY IS THE CAUTION OF LUMBER WHOLESALERS IN BUYING WOOD SINCE LAST SPRING WHEN LUMBER PRICES COLLAPSED AND MANY OF THESE WHOLESALERS WERE CAUGHT HOLDING VAST INVENTORIES OF DRASTICALLY DEVALUED WOOD THEY HAVE BECOME COY ABOUT BUILDING UP SIGNIFICANT STOCKS EVERYBODY HAS BEEN SITTING AROUND WAITING FOR THE MARKET TO BREAK BACK DOWN BUT IT GOT TO THE POINT WHERE THEY COULDN'T WAIT ANYMORE MR MERRILL SAID THEIR SUPPLIES ARE THIN AND THEY HAVE TO BUY TO HONOR THEIR COMMITMENTS TO LUMBER YARDS AND OTHERS PRICES ON THE CASH MARKET FOR LUMBER WERE QUOTED BETWEEN 438 AND 440 PER THOUSAND BOARD FEET YESTERDAY AND ARE EXPECTED TO RISE AS HIGH AS 460 BY NEXT WEEK AS PRICES RISE ON THE CASH MARKET THEY ARE LIKELY TO FOLLOW IN THE CHICAGO MERC'S FUTURES MARKET THE MERC'S DAILY PRICEMOVEMENT LIMIT TODAY WILL RISE TO 15 PER THOUSAND BOARD FEET AS PROVIDED BY THE EXCHANGE'S RULES MOST ANALYSTS EXPECT PRICES TO RISE THE DAILY LIMIT AGAIN TODAY PROVIDED THAT THERE ARE NO SURPRISES IN THE MONTHLY HOUSING STARTS REPORT DUE TODAY FROM THE COMMERCE DEPARTMENT THE STRENGTH OF THE US HOUSING INDUSTRY HAS BEEN A MAJOR FACTOR IN THE RECENT RUNUP IN LUMBER PRICES SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH RELATIVELY MILD WEATHER ACROSS THE COUNTRY HAS ALLOWED FOR RAPID CONSTRUCTION BOOSTING DEMAND FOR LUMBER IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS STRONG EXPORT DEMAND FOR US WHEAT PUSHED WHEAT FUTURES PRICES HIGHER AT THE CHICAGO BOARD OF TRADE WHEAT FOR MARCH DELIVERY ROSE 4 1/2 CENTS TO 371 A BUSHEL A NEW CONTRACT HIGH TRADERS YESTERDAY DIGESTED REPORTS THAT THE PHILIPPINES MOROCCO AND OTHER FOREIGN COUNTRIES HAD ARRANGED TO PURCHASE US WHEAT RUSSIAN AND US AGRICULTURE OFFICIALS ARE SCHEDULED TO MEET IN WASHINGTON TODAY TO DISCUSS THE POSSIBILITY OF A CREDIT PACKAGE FOR RUSSIA ALSO TO BUY WHEAT THE MARKET ALSO WAS BOLSTERED BY REPORTS THAT MUCH OF RUSSIA'S OWN WHEAT CROP HAS FAILED TO GERMINATE BECAUSE OF PERSISTENT RAIN ENERGY CRUDE OIL PRICES FELL WHILE PETROLEUM PRODUCT PRICES ROSE SLIGHTLY FOR THE SECOND CONSECUTIVE SESSION TRADERS SAID THE MOST RECENT STATISTICS FROM THE US GOVERNMENT AND THE OIL INDUSTRY SHOW A RISE IN CRUDE OIL INVENTORIES ACCOUNTING FOR CRUDE'S CONTINUED PRICE WEAKNESS BUT REFINERIES OPERATED AT LOWER LEVELS BOOSTING PRODUCT PRICES TRADERS SAID LIGHT SWEET CRUDE FOR JANUARY DELIVERY SETTLED AT 1423 A BARREL DOWN 18 CENTS JANUARY HEATING OIL SETTLED AT 4455 CENTS A GALLON UP 008 CENT JANUARY GASOLINE ROSE 027 CENT TO 402 CENTS A GALLON 9312170027 931217 LEGAL BEAT AGEBIAS CASES FOUND TO BRING BIG JURY AWARDS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL WORKERS WHO THINK THEY'VE BEEN FIRED BECAUSE OF THEIR AGE HAVE A BIG ADVANTAGE IN LAWSUITS AGAINST THEIR EMPLOYERS JURORS WHO AGREE WITH THEM TEND TO BE VERY GENEROUS THAT'S THE FINDING OF A RECENT SURVEY OF 515 TRIAL VERDICTS IN WRONGFULTERMINATION LAWSUITS FROM 1988 TO 1992 THE REPORT BY JURY VERDICT RESEARCH A LEGAL PUBLISHING FIRM IN HORSHAM PA SAYS PLAINTIFFS WHO PREVAIL BECAUSE OF AGE BIAS ARE AWARDED DAMAGES THAT ARE MUCH HIGHER THAN THOSE RECEIVED BY PEOPLE FIRED BECAUSE OF RACE SEX OR DISABILITY SUCCESSFUL AGEBIAS CLAIMS RESULTED IN AVERAGE AWARDS OF 302914 COMPARED WITH AWARDS OF 255734 FOR SEX DISCRIMINATION 176578 FOR RACE BIAS AND 151421 FOR DISABILITY DISCRIMINATION THE MEDIAN OF ALL AWARDS SHOWED EVEN LARGER GAPS BETWEEN AGE CASES AND OTHERS JURY VERDICT'S DATA NEED SOME CAVEATS THE NATIONWIDE SAMPLE IS DRAWN FROM CASES REPORTED TO IT BY LAW CLERKS LAWYERS LEGAL REPORTERS LAW STUDENTS AND THE MEDIA SO IT'S NOT COMPREHENSIVE ALSO VERDICTS AREN'T FOLLOWED THROUGH THE APPEALS PROCESS AND OUTOFCOURT SETTLEMENTS AREN'T REPORTED NONETHELESS THE RESULTS ARE CONSIDERED CREDIBLE BY LAWYERS AND OTHER EXPERTS IN EMPLOYMENT LAW WHO HAVE WATCHED THE RECENT SURGE IN AGEDISCRIMINATION CLAIMS ASSOCIATED WITH CORPORATE RESTRUCTURINGS AND LARGESCALE LAYOFFS BY HUNDREDS OF COMPANIES JURY BIAS TENDS TO BE VERY EXTREME IN FAVOR OF EMPLOYEES ANYWAY BECAUSE IT'S EASIER FOR JURORS TO IMAGINE BEING AN EMPLOYEE THAN AN EMPLOYER SAYS PAUL GROSSMAN AN ATTORNEY AT THE LOS ANGELES FIRM OF PAUL HASTINGS JANOFSKY & WALKER WHO SPECIALIZES IN DEFENDING COMPANIES EVIDENCE OF AGE BIAS EXACERBATES THAT SAYS MR GROSSMAN BECAUSE FOR MOST JURORS IT'S A LOT EASIER TO IDENTIFY WITH AN OLDER PERSON MR GOLDEN'S LARGEST VERDICT IN AN EMPLOYMENTDISCRIMINATION SUIT INVOLVED AGE HE SAYS TWO YEARS AGO A DETROIT JURY AWARDED 11 MILLION TO A 57YEAROLD FORMER SALESMAN WHO HAD BEEN RECRUITED AWAY FROM HIS EXEMPLOYER TO SELL COMPUTERIZED CONTROLS FOR GE FANUC AUTOMATION INC IN SOUTHFIELD THE PLAINTIFF WAS THE ONLY PERSON FIRED BY GE FANUC IN A REDUCTION IN FORCE BUT ONLY AFTER IT HIRED A HALFDOZEN YOUNGER SALES REPRESENTATIVES AND INTRODUCED THEM TO HIS CLIENTS THE JURY IN THE CASE WAS COMPOSED ALMOST ENTIRELY OF YOUNG PEOPLE AGE DISCRIMINATION PLAYS TO ALL SEGMENTS OF THE POPULATION SAYS MR GOLDEN DURING AN APPEAL THE CASE WAS SETTLED OUT OF COURT FOR AN UNDISCLOSED SUM ANOTHER REASON HIGH AGERELATED AWARDS ARE EXPECTED IS PEOPLE WHO BRING SUCH SUITS GENERALLY ARE HIGH WAGE EARNERS AND MAY HAVE SUFFERED GREATER FINANCIAL LOSSES THAN PEOPLE SUING ON GROUNDS SUCH AS SEX OR DISABILITY SAYS KENNETH KOWALSKI ASSOCIATE DIRECTOR OF THE FAIR EMPLOYMENT PRACTICE CLINIC AT CLEVELAND MARSHALL COLLEGE OF LAW CLEVELAND STATE UNIVERSITY BACK PAY ALONE CAN AMOUNT TO HUNDREDS OF THOUSANDS OF DOLLARS FOR A MID OR LATECAREER EMPLOYEE ANOTHER FACTOR IS THAT OLDER EMPLOYEES THROWN OUT OF WORK GENERALLY FIND IT HARDER TO LAND COMPARABLE NEW JOBS THAT ALSO CAN ENTITLE THEM TO PROSPECTIVE DAMAGES WHAT WE CALL FRONT PAY SAYS NEW YORK PLAINTIFFS' ATTORNEY LEONARD N FLAMM THESE ARE HIGHERTICKET CASES HE SAYS BECAUSE THEY USUALLY DEAL WITH SOMEONE WHO IS NOT LIKELY TO BE REEMPLOYABLE IN THE FUTURE DUE TO THE FACT THAT THEY'RE OLD FEDERAL LAW ALSO IS A CONTRIBUTING CAUSE THE FEDERAL AGE DISCRIMINATION ACT OF 1967 PROVIDES DOUBLE BACK PAY FOR PLAINTIFFS IN CASES WHERE WRONGFUL CONDUCT BY EMPLOYERS IS WILLFUL DOUBLE DAMAGES AREN'T AVAILABLE TO VICTIMS OF RACE OR SEX DISCRIMINATION BUT AGEBIAS PLAINTIFFS' BIGGEST ADVANTAGE LAWYERS AGREE IS THAT THEIR CASES OFTEN ARE CLEARLY PROVABLE EMPLOYERS FREQUENTLY DO IN FACT ACT ON THE BASIS OF AGE WHEN REDUCING THE SIZE OF THEIR COMPANIES IN LARGE PART BECAUSE MORE MONEY CAN BE SAVED BY DISMISSING HIGHERPAID WORKERS IT'S EASY TO BELIEVE HOW AGE CAN PLAY A ROLE SAYS MR FLAMM YOU DON'T HAVE TO SAY THIS GUY IS RACIST OR SEXIST HE'S AN ORDINARY BUSINESSMAN HE WANTS TO SAVE A BUCK FEDERAL JUDGE KEVIN DUFFY NEVER THOUGHT OF HIS ARMED ESCORT AS A FRINGE BENEFIT NOT AT LEAST UNTIL THE INTERNAL REVENUE SERVICE INFORMED HIM THAT HE HAD TO PAY TAXES ON IT JUDGE DUFFY'S SECURITY CONCERNS ARE SERIOUS ONES BECAUSE HE IS PRESIDING OVER THE WORLD TRADE CENTER BOMBING TRIAL IN NEW YORK CITY A CASE IN WHICH PROSECUTORS ARE KNOWN TO HAVE RECEIVED THREATS AS A RESULT A US MARSHAL HAS BEEN PROVIDED TO DRIVE HIM TO AND FROM WORK EVERY DAY FROM HIS HOME SOME 20 MILES NORTH OF THE CITY THE IRS SAYS THE DRIVER PROVIDES HIM A BENEFIT WORTH 3 A DAY ACTUALLY QUITE LOW BY NEW YORK TRANSPORTATION STANDARDS IN HIS BRACKET THAT AMOUNTS TO A DAILY TAX OF 108 JUDGE DUFFY TOOK TIME OUT FROM THE CASE YESTERDAY TO DISAGREE PUBLICLY AND VEHEMENTLY WITH THE IRS'S REASONING I SUGGEST TO YOU THAT THE 108 A DAY WHICH WILL BE GAINED BY THE INTERNAL REVENUE SERVICE WILL NOT PAY OFF THE ENTIRE NATIONAL DEBT JUDGE DUFFY TOLD SLIGHTLY BAFFLED REPORTERS AND SPECTATORS OUTSIDE THE PRESENCE OF THE JURY IN THE 11WEEKOLD TRIAL THE JURIST CONTENDS THAT THE TAXCOLLECTING AGENCY HAS SOMEHOW GONE A LITTLE LOCO READING TOO MANY 1040EZS THIS KIND OF THINKING WOULD REQUIRE THAT POLICE OFFICERS EITHER PURCHASE THEIR OWN BULLETPROOF VESTS OR PAY TAXES ON IT IT WOULD REQUIRE INFANTRYMEN IN THE ARMED FORCES TO PAY FOR THE BULLETS THAT ARE USED HE DECLARED FRANK KEITH AN IRS SPOKESMAN SAID IT'S NOT APPROPRIATE TO COMMENT ON ANY TAXPAYER'S VIEW OF THE TAX SYSTEM BUT HE CONFIRMED THAT LAST YEAR A REGULATION WAS REVISED TO ADDRESS THE CONCERNS OF GOVERNMENT EMPLOYEES RECEIVING SECURITYRELATED TRANSPORTATION IN RESPONSE TO KIDNAPPINGS AND OTHER THREATS IT'S CONSIDERED A PERSONALCOMMUTING FRINGE BENEFIT VALUED AT 3 A DAY MR KEITH SAID THE IDEA THAT JURIES OVERCOMPENSATE PLAINTIFFS WHO WIN MEDICALMALPRACTICE SUITS IS A MYTH ACCORDING TO A STUDY PUBLISHED IN THE DUKE UNIVERSITY LAW JOURNAL THE REPORT CRITICIZES EARLIER RESEARCH INVOKED BY DOCTORS HOSPITALS AND INSURERS SEEKING TO CURB JURIES' POWER IN SUCH CASES THAT INDICATED JURIES TEND TO AWARD EXCESSIVE AMOUNTS FOR PAIN AND SUFFERING IN CASES WHERE THE DEFENDANT IS A DOCTOR OR HOSPITAL THE DUKE STUDY CONTENDS THAT THE RESEARCHERS' METHODS WERE FLAWED LEAVING NO DATA AT ALL TO SUPPORT THE CONTENTIONS THAT JURORS ARE PSYCHOLOGICALLY MOTIVATED BY UNCONTROLLED SYMPATHY FOR PLAINTIFFS AND A BELIEF THAT THE RICH OUGHT TO PAY ITS AUTHOR DUKE LAW SCHOOL PROF NEIL VIDMAR SAID THE RESEARCH INAPPROPRIATELY COMPARED MEDICALMALPRACTICE CASES TO OTHER PERSONALINJURY SUITS FOR EXAMPLE IN CASES INVOLVING CAR ACCIDENTS JURORS MAY VIEW THE PLAINTIFF AS BEING PARTLY RESPONSIBLE AND THEREFORE AWARD LOWER DAMAGES BY CONTRAST MOST OFTEN THE MEDICAL ACCIDENT PLAINTIFF WAS PASSIVE IF NOT COMPLETELY ANESTHETIZED MR VIDMAR SAID MARGARET A JACOBS IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9312170026 931217 UNDER THE INFLUENCE SEAGRAM HEIR ADVISED BY HIS SHOWBIZ PALS CIRCLES TIME WARNER SOME THINK BRONFMAN JR FREE OF DILETTANTE IMAGE WON'T BE PASSIVE INVESTOR DINNER WITH MICHAEL OVITZ BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL EDGAR BRONFMAN JR'S FIRST LOVE HAS ALWAYS BEEN SHOW BUSINESS THE SEAGRAM CO PRESIDENT SKIPPED COLLEGE TO WRITE SONGS AND PRODUCE BMOVIES EVEN AFTER HE JOINED HIS FAMILY'S SPIRITS EMPIRE HE NEVER DID SHAKE THE ENTERTAINMENT BUG AS RECENTLY AS LAST SUMMER HE CLINCHED A MAJOR BUSINESS DEAL AFTER BELTING OUT THE PEPPY SHOW TUNE TOGETHER WHEREVER WE GO FROM THE MUSICAL GYPSY NOW HIS PASSION FOR THE ENTERTAINMENT BUSINESS HAS FOUND A NEW OUTLET UNDER HIS DIRECTION SEAGRAM IS STEADILY AMASSING A SUBSTANTIAL STAKE IN TIME WARNER INC OWNER OF BOTH THE STUDIO BEHIND THE PELICAN BRIEF AND THE NATION'S LARGEST MAGAZINE PUBLISHER YESTERDAY SEAGRAM OF WHICH THE 38YEAROLD MR BRONFMAN IS ALSO CHIEF OPERATING OFFICER SAID IT HAD INCREASED ITS STAKE TO 93 WORTH 154 BILLION FROM 82 IT HAS ALREADY ANNOUNCED ITS INTENTION TO BUY UP TO 15 WHICH WOULD MAKE IT TIME WARNER'S LARGEST SHAREHOLDER MR BRONFMAN JR SAYS THE INVESTMENT IS FRIENDLY AND HE HAS NO DESIRE FOR A HANDSON ROLE AT TIME WARNER THEY ARE DOING AN OUTSTANDING JOB I AM VERY PLEASED WITH THE RELATIONSHIP HE SAID YESTERDAY AFTERNOON ASKED IF SEAGRAM IS SEEKING BOARD REPRESENTATION HE REPLIED IF THEY INVITE US WE WILL CONSIDER IT AT THAT TIME BUT HIS FATHER THE SENIOR EDGAR BRONFMAN WHO IS SEAGRAM'S CHAIRMAN SAID EARLIER THIS WEEK THAT SEAGRAM WILL EVENTUALLY SEEK BOARD REPRESENTATION AND SOME INDUSTRY OBSERVERS QUESTION HOW FRIENDLY THE FAMILY WILL REMAIN THEY BELIEVE THE YOUNGER MR BRONFMAN INFLUENCED BY POWERFUL HOLLYWOOD FRIENDS INCLUDING MICHAEL OVITZ OF CREATIVE ARTISTS AGENCY IS DISSATISFIED WITH TIME WARNER'S MANAGEMENT AND MAY PRESS FOR AN ACTIVE ROLE THIS ISN'T BENIGN THIS ISN'T SOME PASSIVE INVESTMENT CONTENDS EMANUEL GERARD A FORMER EXECUTIVE WITH THE OLD WARNER COMMUNICATIONS INC WHO NOW IS CHAIRMAN OF GERARD KLAUER MATTISON & CO AN INVESTMENT BANKING FIRM UNTIL MAKING HIS BRIEF COMMENTS YESTERDAY THE YOUNGER MR BRONFMAN HAD STEADFASTLY REFUSED TO DISCUSS TIME WARNER IN AN EARLIER INTERVIEW HELD IN HIS IMPECCABLY FURNISHED OFFICE TASTEFULLY ACCENTED BY AN ORIGINAL MIRO PAINTING HE WAS FORMAL AND CONTROLLED RESERVED TO THE POINT OF APPEARING ALOOF THE NEATLY BEARDED HEIR LITERALLY REFUSED TO OPEN HIS MOUTH IN RESPONSE TO MOST QUESTIONS ABOUT TIME WARNER WITH LIPS PURSED AND FINGERS BRACED IN A TAUT STEEPLE HE WOULD SILENTLY SHAKE HIS HEAD NO CLEARLY THOUGH THE TIME WARNER INVESTMENT IS A CHANCE FOR MR BRONFMAN TO PROVE HIMSELF AS A SERIOUS BUSINESSMAN HE IS WORKING MIGHTILY TO PUT TO REST THE REPUTATION THAT HAS DOGGED HIM THROUGHOUT HIS CAREER AS A RICHKID DILETTANTE WHO GOT HIS JOB THROUGH NEPOTISM IN DOING SO HE ALSO IS ATTEMPTING TO RESHAPE SEAGRAM FOR THE FUTURE HIS FATHER 64 YEARS OLD IS NO LONGER INVOLVED IN DAYTODAY OPERATIONS HE IS THE THIRD CAPTAIN OF THE SHIP AFTER HIS GRANDFATHER AND FATHER MR OVITZ SAYS HE HAS MADE A DECISION ABOUT WHERE HE WANTS TO STEER THE SHIP FOR THE NEXT 30 YEARS MR BRONFMAN JR'S RECORD AT SEAGRAM IS MIXED AT BEST HE HAS A HISTORY OF BUNGLING SOME OPPORTUNITIES AND OVERPAYING FOR ACQUISITIONS THOUGH HE HAS WON PRAISE FOR REFOCUSING THE COMPANY ON UPSCALE BRANDS HIS BUSINESS ACUMEN IS SURE TO BECOME A CENTRAL ISSUE AS SEAGRAM ACCUMULATES MORE TIME WARNER SHARES AND INFLUENCE ALREADY SOME INSIDERS AT SEAGRAM WHO ADMITTEDLY AREN'T FOND OF THEIR BOSS WHO THEY SAY CAN BE DISMISSIVE AND CONDESCENDING TOWARD EMPLOYEES ARE SKEPTICAL ONE JOKE MAKING THE ROUNDS AT HEADQUARTERS IS THAT THE ONLY THING SEAGRAM AND TIME WARNER HAVE IN COMMON IS ICE T A REFERENCE TO ONE COMPANY'S BEVERAGE AND THE OTHER'S CONTROVERSIAL RAP STAR WHO PARTED WAYS WITH TIME WARNER EARLIER THIS YEAR MR BRONFMAN'S EARLY HOLLYWOOD CAREER HARDLY SEEMED DESTINED TO MOVE HIM TOWARD THE PINNACLE OF THE ENTERTAINMENT BUSINESS AFTER ATTENDING A PRESTIGIOUS PRIVATE HIGH SCHOOL HE DIPPED INTO HIS FAMILY'S ESTIMATED 4 BILLION FORTUNE TO PRODUCE A FEW MOSTLY FORGETTABLE FILMS RANGING FROM THE BLOCKHOUSE MADE WHEN HE WAS 17 YEARS OLD TO THE 1982 JACK NICHOLSON FLOP THE BORDER HE ALSO EARNED MONEY FROM FIVE ORIGINAL SONGS MUSICINDUSTRY RECORDS SHOW AMONG THEM SUCH TITLES AS SUNSHINE IN YOUR ARMS AND WHISPER IN THE DARK WHICH WAS PERFORMED BY DIONNE WARWICK IF HIS SHOWBUSINESS CAREER NEVER QUITE TOOK OFF HE WAS FAR MORE SUCCESSFUL IN PENETRATING THE INNER CIRCLE OF HOLLYWOOD'S MOST POWERFUL SOCIAL CLIQUE AMONG HIS FRIENDS ARE QVC NETWORK INC'S BARRY DILLER INVESTMENT BANKER HERBERT A ALLEN JR AND MR OVITZ WHOSE FATHER IS A SALESMAN FOR A SEAGRAM DISTRIBUTOR AT A RECENT LEUKEMIA SOCIETY OF AMERICA BENEFIT GALA HONORING MR BRONFMAN AT MANHATTAN'S PLAZA HOTEL MR OVITZ FLEW IN TO INTRODUCE HIM ACTOR MICHAEL DOUGLAS ANOTHER SON WHO STARTED OUT IN HIS FATHER'S SHADOW SHOWED UP TO GIVE A HEARTWARMING SPEECH ABOUT HIS FRIEND AND SINGER MICHAEL BOLTON DROPPED BY TO SING A FEW SONGS TWO OF THOSE FRIENDS MESSRS OVITZ AND ALLEN HAVE SERVED AS MR BRONFMAN'S ADVISERS ON THE TIME WARNER INVESTMENT MR BRONFMAN FIRST BEGAN EXPLORING THE IDEA OF INVESTING IN THE ENTERTAINMENT INDUSTRY TWO YEARS AGO AND TURNED TO MR OVITZ GENERALLY REGARDED AS THE MOST POWERFUL PERSON IN HOLLYWOOD FOR ADVICE MR OVITZ INTRODUCED HIM TO MR ALLEN WHO RUNS ALLEN & CO ONE OF THE INDUSTRY'S MOST PROMINENT INVESTMENT BANKING FIRMS THEY HELPED PINPOINT TIME WARNER WHICH OWNS A BROAD MIX OF ASSETS INCLUDING THE NATION'S SECONDLARGEST CABLE COMPANY A LEADING RECORD COMPANY WITH ARTISTS INCLUDING EN VOGUE AND METALLICA AND THE WARNER BROS FILM STUDIO AND TIME INC MAGAZINE COMPANY TIME WARNER ALSO PRESENTED AN UNUSUAL OPPORTUNITY BY THE TIME SEAGRAM MADE ITS FIRST INVESTMENT EARLIER THIS YEAR TIME WARNER'S CHARISMATIC CHAIRMAN STEVEN J ROSS HAD DIED A NEW MAN GERALD LEVIN HAD JUST TAKEN THE REINS WHILE WALL STREET HAS EMBRACED THE TIME WARNER CHIEF THE COMPANY'S STOCK HAS DOUBLED IN 18 MONTHS MANY IN THE HOLLYWOOD ESTABLISHMENT HAVE BEEN SCORNFUL OF MR LEVIN HOLLYWOOD INSIDERS VIEW THE ONETIME LAWYER AS TOO WEAK TO MERGE THE DISPARATE CULTURES OF THE FORMER TIME INC AND WARNER COMMUNICATIONS WHICH TIME ACQUIRED IN 1989 THEY WERE FAR MORE ENAMORED OF MR LEVIN'S PREDECESSOR MR ROSS WHOM THEY CREDIT WITH HAVING GREATER VISION IN THE PAST MR OVITZ IS KNOWN TO HAVE BEEN CRITICAL OF MR LEVIN A VIEW TIME WARNER WAS APPARENTLY AWARE OF LAST MONTH MR OVITZ INITIATED A MEETING WITH MR LEVIN TO AMONG OTHER THINGS ASSUAGE TIME WARNER'S CONCERNS ABOUT HIM BOTH SIDES DESCRIBE THE MEETING AS CORDIAL MR BRONFMAN JR SAYS HE FULLY SUPPORTS MR LEVIN WHOM HE CALLS AN EXTREMELY BRIGHT MAN HE'S GOT VERY SENSIBLE AND SOUND OBJECTIVES FOR THE COMPANY UNFAILINGLY GRACIOUS AND POLITE ALMOST COURTLY IN CONVERSATION MR BRONFMAN ALSO WANTS TO MAKE CLEAR THAT HIS INVESTMENT ISN'T SIMPLY A WAY TO ATTACH HIMSELF TO THE GLAMOUR OF THE MOVIE BUSINESS AS SOME TIME WARNER INSIDERS HAVE SUGGESTED IF I WANTED TO BE IN THE MOVIE BUSINESS HE SAYS SMILING I COULD SPEND CONSIDERABLY LESS THAN 700 MILLION THE YOUNGER MR BRONFMAN COMPARES THE TIME WARNER INVESTMENT TO THE PASSIVE 243 STAKE SEAGRAM HOLDS IN DUPONT CO IN FACT SEAGRAM'S STAKE IN DUPONT NOW WORTH 8 BILLION HASN'T BEEN PASSIVE AT ALL SEAGRAM CONTROLS A QUARTER OF THE SEATS ON DUPONT'S 20PERSON BOARD WITH DIRECTORS INCLUDING MR BRONFMAN JR HIS FATHER AND HIS UNCLE CHARLES R BRONFMAN WHO IS COCHAIRMAN OF SEAGRAM PEOPLE CLOSE TO DUPONT SAY SEAGRAM HAS EXERTED ITS INFLUENCE QUIETLY BUT FIRMLY SINCE IT BECAME AN INVESTOR IN 1981 PRODDING THE CHEMICAL GIANT TO MAKE SUCH MOVES AS STREAMLINING OPERATIONS IN RECENT YEARS DUPONT HAS ELIMINATED 6000 JOBS AND SPEEDED UP ITS PRODUCTDEVELOPMENT CYCLE I WOULD ATTRIBUTE AN AWFUL LOT OF THAT TO THE BRONFMANS SAYS FRED SIEMER PUBLISHER OF CHEMICAL RESEARCH FOR WALL STREET THE BRONFMANS ARE CERTAINLY NOT RETICENT ABOUT EXPRESSING THEIR OPINION EDGAR WOOLARD DUPONT'S CHAIRMAN AND CHIEF EXECUTIVE CALLS THE BRONFMANS VERY POSITIVE AND CONSTRUCTIVE PLAYERS AT THE COMPANY PROFITS FROM DUPONT HAVE HELPED SEAGRAM WEATHER SOME TOUGH TIMES IN ITS LIQUOR BUSINESS ACCOUNTING FOR THE MAJORITY OF SEAGRAM'S PROFITS THROUGHOUT MUCH OF THE 1980S TIME WARNER COULD PROVIDE A SIMILAR HEDGE AGAINST FUTURE WEAKNESSES IN THE LIQUOR BUSINESS ANALYSTS SAY SEAGRAM'S LIQUOR OPERATIONS UNDER THE YOUNGER MR BRONFMAN HAVE SHOWN LACKLUSTER RESULTS RECENTLY AND ANALYSTS SAY THAT ON A PERCASE BASIS SEAGRAM IS ONE OF THE LEAST PROFITABLE OF THE MAJOR SPIRITS COMPANIES A TIME WARNER SPOKESMAN SAYS THAT WE HAVE A VERY CLOSE AND CORDIAL RELATIONSHIP WITH SEAGRAM AND THAT THE QUALITY OF OUR PERFORMANCE OUR STRATEGIC POSITION OUR BALANCE SHEET AND OUR STOCK APPRECIATION SPEAKS ELOQUENTLY TO THE STRENGTH OF OUR MANAGEMENT MR BRONFMAN JR AND MR LEVIN HAVE HAD SEVERAL MEETINGS AND LUNCHES THAT THEY DESCRIBE AS CORDIAL BUT TIME WARNER'S INITIAL RECEPTION TO SEAGRAM WAS FROSTY TIME WARNER MANAGEMENT WAS SUSPICIOUS EARLY ON SAYS THE ELDER MR BRONFMAN HE ADDS THEY ALWAYS ARE AT FIRST SOME ON WALL STREET BELIEVE THAT SUSPICION WAS JUSTIFIED SEVERAL TIME WARNER EXECUTIVES SAY THEY WERE DISMAYED THAT THEY DIDN'T LEARN OF SEAGRAM'S STAKE UNTIL JUST BEFORE A PUBLIC ANNOUNCEMENT IN MAY THAT WAS ESPECIALLY TROUBLESOME BECAUSE SEAGRAM LAST YEAR HAD BRIEFLY HELD DISCUSSIONS WITH TIME WARNER ABOUT MAKING A FRIENDLY INVESTMENT WHEN NOTHING CAME OF THOSE TALKS SEAGRAM STARTED BUYING IN THE OPEN MARKET IN FEBRUARY BY BUYING STOCK IN THE OPEN MARKET RATHER THAN GOING DIRECTLY TO THE COMPANY CONTENDS SG WARBURG & CO ANALYST LIZBETH R BARRON MR BRONFMAN IS SENDING A MESSAGE THAT THIS ISN'T ON A PASSIVE OR FRIENDLY BASIS SOME PEOPLE WHO KNOW THE YOUNGER MR BRONFMAN WELL WARN NOT TO ASSUME HE WILL BE SWAYED BY HIS HOLLYWOOD FRIENDS IN EVALUATING TIME WARNER SINCE JOINING SEAGRAM MORE THAN A DECADE AGO HE HAS MATURED INTO A STRONG EXECUTIVE WITH SOLID BUSINESS JUDGMENT THEY SAY ADMITTEDLY EARLY ON MR BRONFMAN WAS SEEN AS SOMETHING OF A JOKE AT HIS OWN COMPANY THE DAY HE STARTED WORK AT SEAGRAM IN 1982 THE YOUNG HEIR SHOWED UP DECKED OUT IN COWBOY BOOTS AND A STRING TIE HE DID A STINT IN EUROPE AND FOCUSED HIS ENERGIES ON SUCH MATTERS AS WHAT ACTOR BRUCE WILLIS WOULD WEAR IN A WINECOOLER COMMERCIAL HE ALSO SHOOK UP HIS CONSERVATIVE JEWISH FAMILY BY ELOPING WITH A BLACK ACTRESS AND PURSUED A JETSET LIFE AT NIGHTCLUBS BUT MR BRONFMAN HAS SINCE LAUNCHED A CONCERTED EFFORT TO OVERCOME HIS REPUTATION AS AN ECCENTRIC RICH KID AND SUPPORTERS SAY HE IS SUCCEEDING CONFRONTED BY A FLAT US SPIRITS MARKET FOR EXAMPLE EDGAR JR HAS EXPANDED SEAGRAM AGGRESSIVELY INTO NEW GLOBAL TERRITORIES AND SHED LOWMARGIN SPIRITS SUCH AS WOLFSCHMIDT VODKA TO FOCUS ON UPSCALE PROFITABLE BRANDS HE HAS SLASHED THE US SPIRITS WORK FORCE BY 60 TO 1770 OVER THE PAST FOUR YEARS IN A DRAMATIC RESTRUCTURING THAT HELPED BOOST OPERATING PROFITS FOR THE SPIRITS AND BEVERAGE BUSINESS TO 762 MILLION LAST YEAR COMPARED WITH 286 MILLION IN 1988 MOST RECENTLY HE AND HIS TEAM SUCCEEDED IN WRESTING AWAY FROM GRAND METROPOLITAN PLC THE LUCRATIVE RIGHTS TO DISTRIBUTE ABSOLUT THE TOPSELLING PREMIUM VODKA MADE BY SWEDEN'S GOVERNMENTCONTROLLED VIN & SPRIT AB MR BRONFMAN PULLED OUT ALL THE STOPS DURING A WEEKEND OF MEETINGS AT A MEDIEVAL CASTLE IN STOCKHOLM TO CLINCH THE DEAL TO HELP HIS TIGHTLACED TEAM OF EXECUTIVES RELATE BETTER TO THE MORE INFORMAL SWEDISH EXECUTIVES HE EVEN REHEARSED HIS GROUP IN THE STEPHEN SONDHEIM SHOWSTOPPER TOGETHER WHEREVER WE GO TO PERFORM FOR THEIR HOSTS AT FIRST THERE WAS A LOT OF MUTTERING WHEN MR BRONFMAN JOINED THE FAMILY COMPANY RECALLS MARTIN BART A FORMER SENIOR EXECUTIVE AT SEAGRAM THERE WERE CONCERNS ABOUT HIS ABILITY AND HIS DEVOTION TO THE BUSINESS BUT HE SAYS MR BRONFMAN HAS SURPRISED SKEPTICS BY DOING AN EXCELLENT JOB RUNNING THE COMPANY IMMERSING HIMSELF IN THE BUSINESS RIGHT DOWN TO TAKING SCORES OF TRIPS TO SMALL RETAILERS AND DISTRIBUTORS ONCE WE RESTOCKED SEAGRAM WINE COOLERS AT A 7ELEVEN STORE IN HOUSTON TEXAS AT ONE IN THE MORNING SAYS MR BART HE LIKED TO SHOW UP AT WAREHOUSES IN THE MIDDLE OF THE NIGHT TO MAKE SURE SEAGRAM PRODUCTS WERE BEING LOADED ON THE TRUCKS PROPERLY STILL MR BRONFMAN'S HISTORY AT SEAGRAM IS LITTERED WITH STRATEGIC ERRORS AND MISSED OPPORTUNITIES IN 1988 HE OVERPAID FOR TROPICANA PRODUCTS INC AND MARTELL COGNAC AND ANALYSTS SAY IT IS UNLIKELY THAT SEAGRAM WILL EARN A DECENT RETURN ON EITHER BUSINESS ANYTIME SOON SEAGRAM ALSO BOTCHED THE MUCH SMALLER ACQUISITION OF SOHO BEVERAGES BUNGLING THE CHANCE TO STAKE OUT AN EARLY POSITION IN THE EXPLOSIVE NEW AGE BEVERAGE MARKET PRODUCT INTRODUCTIONS HAVE BEEN FEW AND FAR BETWEEN PART OF THE PROBLEM IS MR BRONFMAN'S MANAGEMENT STYLE EMPLOYEES SAY HE CAN SOMETIMES BE DISMISSIVE AND PATRONIZING AND SOME SEAGRAM EXECUTIVES SAY THEY ARE AFRAID TO SPEAK UP IF THEY DISAGREE WITH HIM SEAGRAM MARKETING EXECUTIVES DROPPED THE DEVELOPMENT OF SEVERAL PROMISING NEW BEVERAGES A YEAR OR TWO AGO FOR EXAMPLE RATHER THAN RISK MR BRONFMAN'S DISAPPROVAL CONTENDS PETER FLATOW A BEVERAGE CONSULTANT WHO WORKS WITH THE FIRM SOPHIA COLLIER A COFOUNDER OF SOHO BEVERAGES WHO SOLD THE COMPANY TO MR BRONFMAN DESCRIBES SEAGRAM'S CULTURE AS FEUDAL WITH MR BRONFMAN WHOSE FAMILY CONTROLS 364 OF THE PUBLICLY HELD COMPANY PRESIDING AS ALLPOWERFUL LORD SHE SAYS SHE ONCE WATCHED SEAGRAM EXECUTIVES NERVOUSLY CONDUCT A DETAILED DRESS REHEARSAL SIMPLY TO PREPARE FOR AN INFORMAL MEETING WITH MR BRONFMAN AT AN AWARDS DINNER SHE RECALLS HIS PEOPLE WERE AFRAID TO LEAVE THE ROOM TO GO TO THE BATHROOM WHILE HE WAS SPEAKING MS COLLIER SAYS SOHO HAD PLANS TO LAUNCH AN ICED TEA WHEN IT WAS SOLD TO SEAGRAM BUT SEAGRAM MARKETERS WERE AFRAID TO PURSUE THE NEW PRODUCTS IN PART SHE BELIEVES BECAUSE THEY WEREN'T SURE HOW MR BRONFMAN JR WOULD REACT MEANWHILE SEAGRAM CHANGED THE FLAVORS AND THE PACKAGING AND SOHO'S SALES SLID THE COMPANY WHICH PAID 14 MILLION FOR SOHO IN 1989 DUMPED IT FOR 2 MILLION IN 1992 MR BRONFMAN DOESN'T VIEW HIMSELF AS DIFFICULT TO WORK WITH MY PERCEPTION IS THAT I SEEK DIFFERENT OPINIONS AND THAT I AM OPEN TO CHANGING MY MIND HE SAYS CLEARLY THE FEAR HE INSPIRES AMONG SOME EMPLOYEES IS DUE IN PART TO HIS RELENTLESS PERFECTIONISM ABOUT EVEN THE MOST MINUTE DETAILS OF HIS BUSINESS HE HAS BEEN KNOWN TO HECTOR BARTENDERS INTO GIVING SEAGRAM'S CHIVAS SCOTCH MORE PROMINENT DISPLAY THAN ITS RIVALS THE SEAGRAM HEIR WHO DIVORCED IN 1991 NOW IS ENGAGED TO CLARISSA ALCOCK A YOUNG VENEZUELAN WOMAN FROM AN ELITE OIL FAMILY RECENTLY WHILE DINING AT A TONY NEW YORK WATERING HOLE WITH A GROUP INCLUDING HIS FUTURE MOTHERINLAW HE BECAME VISIBLY PERTURBED AND DISAPPEARED FROM THE TABLE FOR 15 MINUTES TO FIND THE OWNER AFTER BEING TOLD THE RESTAURANT WAS OUT OF HIS FAVORITE VINTAGE OF MUMM'S CHAMPAGNE A SEAGRAM PRODUCT BY THE NEXT MORNING MR BRONFMAN JR HAD MADE SEVERAL PHONE CALLS TO ENSURE THAT THE CELLAR WAS REPLENISHED AND SAYS HE RECENTLY RETURNED TO ENJOY A GLASS OF HIS FAVORITE CHAMPAGNE 9312170025 931217 PETROCORP HOLDERS TO SELL STOCK HOUSTON PETROCORP SAID ITS TWO LARGEST SHAREHOLDERS AGREED TO SELL 1650000 COMMON SHARES TO A GROUP OF FUNDS MANAGED BY FIRST RESERVE CORP AT 1050 EACH PETROCORP HAS 86 MILLION SHARES OUTSTANDING AFTER THE TRANSACTION IS COMPLETED FIRST RESERVE WILL HAVE A 192 STAKE IN THE COMPANY THE SHAREHOLDERS ARE UNITS OF USF&G CORP AND CIGNA CORP AND THE SALE WILL REDUCE USF&G'S INTEREST TO 202 AND CIGNA'S TO 185 FIRST RESERVE WHICH SPECIALIZES IN INVESTMENTS IN THE ENERGY INDUSTRY SAID IT PLANS TO ACQUIRE ADDITIONAL SHARES IN THE OPEN MARKET FROM TIME TO TIME PETROCORP SAID THAT AFTER THE TRANSACTION CLOSES ITS BOARD WILL BE EXPANDED TO 10 DIRECTORS INCLUDING A FIRST RESERVE REPRESENTATIVE 9312170024 931217 VENEZUELAN COMPANY LOSES BID FOR CHANGE IN EPA GASOLINE RULE WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY REJECTED A REGULATORY CHANGE THAT WAS SOUGHT BY A VENEZUELAN OIL COMPANY FOR GASOLINE IMPORTED TO THE US PETROLEOS DE VENEZUELA SA HAD URGED THE EPA TO INSERT LANGUAGE IN AN AUTOEMISSION REGULATION THAT WOULD HAVE ALLOWED THE COMPANY TO IMPORT GASOLINE CONTAINING HIGHER LEVELS OF OLEFINS WHICH CONTRIBUTE TO SMOG THE COMPANY PARENT OF CITGO PETROLEUM CO OF TULSA OKLA SAID THE HIGHER LEVELS OF OLEFINS WOULD BE MORE THAN OFFSET BY LOWER LEVELS OF OTHER POLLUTANTS THE COMPANY WON A SYMPATHETIC HEARING FROM STATE DEPARTMENT OFFICIALS AND THE OFFICE OF THE US TRADE REPRESENTATIVE WHO WERE WORRIED THAT VENEZUELA WOULD FILE A COMPLAINT AGAINST THE US IN THE MATTER UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE BUT THE EPA IN ISSUING A FINAL RULE FOR ITS NEW REFORMULATEDGASOLINE PROGRAM SCHEDULED TO GO INTO EFFECT IN 1995 DIDN'T ADDRESS THE VENEZUELAN OIL ISSUE THE RULE ISSUED UNDER THE 1990 CLEAN AIR ACT REQUIRES THE NATION'S NINE SMOGGIEST CITIES TO REDUCE SMOGFORMING AUTOMOBILE EMISSIONS 15 TO 17 BY THE YEAR 2000 YESTERDAY IN CARACAS VENEZUELAN OIL MINISTER ALIRIO PARRA CONFIRMED THAT VENEZUELA WILL PROTEST UNDER TERMS OF THE NEW TRADE PACT HE SAID THE NEW EPA GASOLINE RULE DISCRIMINATES AGAINST VENEZUELA IN VIOLATION OF GATT SEPARATELY THE EPA UNVEILED DETAILS OF A PROPOSED REGULATION MANDATING THAT 30 OF THE FUEL SOLD IN THE REFORMULATEDGASOLINE PROGRAM INCLUDE A RENEWABLE OXYGENATE WHICH IN PRACTICE MEANS ETHANOL OR ITS ETHER DERIVATIVE BECAUSE ETHANOL'S EVAPORATIVE PROPERTIES CAN INCREASE POLLUTION IN THE SUMMER MONTHS THE EPA PLAN SAYS THAT THE ONLY ETHANOL PRODUCT THAT CAN BE USED DURING THAT SEASON IS THE ETHER DERIVATIVE THE PROPOSED RULE COULD INCREASE ETHANOL PRODUCTION IN THE US BY AS MUCH AS 60 THE EPA SAID 9312170023 931217 BUSINESS BRIEF MOLECULAR BIOSYSTEMS INC SHARES SKID 20 AS THE FDA SEEKS MORE DATA ON PRODUCT MOLECULAR BIOSYSTEMS INC SHARES SANK ALMOST 20 YESTERDAY AFTER THE SAN DIEGO COMPANY SAID IT RECEIVED ADDITIONAL QUESTIONS FROM THE FOOD AND DRUG ADMINISTRATION ABOUT THE COMPANY'S APPLICATION TO MARKET ALBUNEX A NEW CARDIACIMAGING AGENT IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE STOCK CLOSED AT 18125 OFF 450 ON VOLUME OF 690500 SHARES THE COMPANY SAID IT WILL RESPOND TO THE FDA QUESTIONS AND COMMENTS BEFORE THE END OF THE YEAR AND IS ENCOURAGED BY THE AGENCY'S RELATIVE EMPHASIS ON PRODUCT LABELING AND POSTMARKETING ACTIVITIES SPECULATORS HAVE BEEN BUYING THE STOCK IN RECENT WEEKS IN ANTICIPATION OF A QUICK PRICE RUNUP AFTER US REGULATORY APPROVAL SAID EDMUND A DEBLER AN ANALYST AT MEHTA & ISALY IN NEW YORK ALBUNEX WAS APPROVED FOR MARKETING IN JAPAN IN OCTOBER 9312170022 931217 PACKWOOD DIARIES ARE NOW IN HANDS OF FEDERAL JUDGE BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A FEDERAL JUDGE TOOK POSSESSION OF SEN BOB PACKWOOD'S PERSONAL DIARIES WHICH THE SENATE ETHICS COMMITTEE WANTS AS IT INVESTIGATES SEXUALHARASSMENT CHARGES AGAINST THE OREGON REPUBLICAN THE MOVE COMES IN RESPONSE TO SUGGESTIONS BY THE COMMITTEE THAT THE SENATOR MAY HAVE BEEN ALTERING THE DIARIES THE JUDGE'S ACTION DELAYS A DECISION ON THE DIARIES WHICH WERE SUBPOENAED BY THE SENATE LAST MONTH OVER SEN PACKWOOD'S OBJECTIONS IN A TWOHOUR HEARING YESTERDAY US DISTRICT COURT JUDGE THOMAS P JACKSON GAVE SEN PACKWOOD'S ATTORNEY JACOB STEIN FIVE DAYS TO FILE PAPERS DEFENDING HIS RIGHT TO WITHHOLD THE DIARIES THE ETHICS COMMITTEE THEN WILL HAVE FIVE DAYS TO REPLY THE HEARING CONTINUED THE BIZARRE FIGHT FOR THE DIARIES WHICH HOLD INFORMATION VITAL TO DETERMINING WHETHER FURTHER CHARGES WILL BE FILED AGAINST SEN PACKWOOD THIS WEEK THE COMMITTEE DISCLOSED THAT SEN PACKWOOD ALTERED ORIGINAL VERSIONS OF THE DIARIES AFTER THE INVESTIGATION BEGAN RAISING THE POSSIBILITY OF OBSTRUCTIONOFJUSTICE CHARGES AND YESTERDAY A COMMITTEE LAWYER SAID THE SENATOR KEPT AN ORIGINAL COPY OF HIS TAPERECORDED MEMOIRS FOR THE PAST YEAR THE COMMITTEE HAS BEEN INVESTIGATING CHARGES THAT SEN PACKWOOD SEXUALLY HARASSED DOZENS OF WOMEN AND THAT HE AND HIS STAFF TRIED TO INTIMIDATE AND DISCREDIT THE WOMEN WHO CAME FORWARD TO ACCUSE HIM BUT SINCE SEN PACKWOOD FIRST PERMITTED THE COMMITTEE TO REVIEW PARTS OF HIS DIARY THE SCOPE OF THE INQUIRY HAS EXPANDED THE DIARY FOR INSTANCE RAISED QUESTIONS ABOUT WHETHER SEN PACKWOOD ENTERTAINED JOB OFFERS FOR HIS WIFE FROM LOBBYISTS WHOSE INTERESTS HE MAY HAVE FURTHERED IN HIS LEGISLATIVE WORK THAT PROMPTED A JUSTICE DEPARTMENT INVESTIGATION WHICH CONTINUES INTO CONFLICTOFINTEREST CHARGES THIS WEEK THE ETHICS COMMITTEE RELEASED PORTIONS OF A DEPOSITION IN WHICH CATHY WAGNER CORMACK WHO TRANSCRIBED SEN PACKWOOD'S TAPERECORDED DIARY SAID THAT HE HAD ALTERED PORTIONS OF IT AFTER THE INVESTIGATION BEGAN IT WASN'T PRECISELY CLEAR WHEN THE CHANGES WERE MADE OR WHAT WAS CHANGED SHE SAID BUT SEN PACKWOOD MADE THE CHANGES AFTER THE SENATE SUBPOENA OF THE TAPES HAD BEEN DISCUSSED THERE WAS AN INVESTIGATION AT THE TIME SAID MICHAEL DAVIDSON AN ATTORNEY FOR THE ETHICS COMMITTEE AND HE ANTICIPATED A SUBPOENA THE ALTERED PORTION APPEARS TO INCLUDE ENTRIES FROM LATE 1992 WHEN THE HARASSMENT CHARGES WERE FIRST DISCLOSED AND SEN PACKWOOD WAS DENYING THEM IN A FURTHER TWIST THE FULL DEPOSITION RELEASED YESTERDAY DISCLOSED THAT SEN PACKWOOD HAS KEPT ORIGINAL UNALTERED COPIES OF THE DIARY MR STEIN THE PACKWOOD ATTORNEY SAID THE ORIGINAL DIARIES WERE KEPT UNDER LOCK AND KEY AT A WASHINGTON LAW OFFICE THESE WOULD GO TO JUDGE JACKSON FOR SAFEKEEPING HE SAID SEN PACKWOOD WHO WASN'T PRESENT AT YESTERDAY'S COURT HEARING HAS HAD LITTLE TO SAY ABOUT THE INVESTIGATION ALTHOUGH MS CORMACK SAID SHE HAD SPOKEN TO SEN PACKWOOD THE NIGHT BEFORE THE DEPOSITION HE CALLED TO TELL ME I LOOKED GREAT ON TELEVISION SHE TOLD THE ETHICS COMMITTEE ATTORNEYS 9312170021 931217 THAILAND ECONOMY FORECAST TO GROW 78 IN '94 UP FROM 75 BANGKOK THAILAND'S ECONOMY IS EXPECTED TO GROW 78 IN 1994 UP FROM 75 THIS YEAR ACCORDING TO A FORECAST BY THE COUNTRY'S CENTRAL BANK WHICH ALSO HAD A CAUTION ABOUT OVERHEATING THE RAPIDLY IMPROVING ECONOMY HAS SHIFTED THE GOVERNMENT'S ATTENTION TO CONTAINING ECONOMIC ACTIVITY FROM STIMULATING GROWTH AFTER A TWOYEAR SLOWDOWN ALTHOUGH OVERHEATING MAY NOT BE FELT NEXT YEAR THE ADVERSE IMPACT MAY OCCUR IN THE FOLLOWING YEARS SUCH AS HIGH INFLATION A LARGER CURRENTACCOUNT DEFICIT AND HIGHER EXTERNAL DEBT SAID BANK OF THAILAND GOV VIJIT SUPINIT AS USUAL THE CENTRAL BANK'S ECONOMIC FORECAST IS THE MOST CONSERVATIVE OF THOSE ANNOUNCED SO FAR SIX OTHER PRIVATE AND GOVERNMENTRESEARCH GROUPS RELEASED ESTIMATES THIS MONTH RANGING FROM 79 TO 85 GROWTH IN THAILAND'S 1994 GROSS DOMESTIC PRODUCT GDP MEASURES THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN A NATION THE BANK OF THAILAND AGREED WITH THE OTHER ECONOMISTS THAT EXPORT GROWTH WOULD LEAD THE ECONOMY NEXT YEAR THE CENTRAL BANK FORECAST A 15 RISE IN EXPORTS UP FROM SOMEWHAT DISAPPOINTING GROWTH OF ONLY 12 IN 1993 LARGELY DUE TO LOW AGRICULTURAL PRICES DURING MOST OF THE YEAR WITH JAPAN AND OTHER ASIAN NATIONS OPENING THEIR MARKETS TO RICE IMPORTS FOR THE FIRST TIME RICE PRICES HAVE JUMPED THAT'S LIKELY TO BE A BOON FOR THAILAND THE WORLD'S LARGEST RICE EXPORTER BUT THE BANK OF THAILAND SAID THE OVERALL TRADE BALANCE WON'T IMPROVE NEXT YEAR THAI IMPORTS ARE EXPECTED TO RISE 15 UP FROM 13 THIS YEAR AS LOW INTEREST RATES CONTINUE TO ENCOURAGE INVESTMENT AND DEMAND FOR HIGHQUALITY FOREIGN GOODS GROWS THE CURRENTACCOUNT DEFICIT WILL WIDEN TO 223 BILLION BAHT US917 BILLION OR 67 OF GDP IN 1994 THE CENTRAL BANK SAID THAT'S UP FROM 192 BILLION BAHT THIS YEAR OR 65 OF GDP 9312170020 931217 BUSINESS BRIEF MAN AG GERMAN GROUP'S SALES FELL 6 IN FIVEMONTH PERIOD GERMAN MACHINERY AND TRUCK MANUFACTURER MAN AG SAID FIVEMONTH GROUP SALES FELL 6 TO 613 BILLION MARKS 357 BILLION FROM 654 BILLION MARKS A YEAR EARLIER THE COMPANY WHOSE FISCAL YEAR BEGAN JULY 1 ALSO REPORTED GROUP ORDERS FOR THE PERIOD WERE UP 25 TO 73 BILLION MARKS FROM 583 BILLION MARKS THE COMPANY'S ORDER BACKLOG AS OF NOV 30 WAS 1549 BILLION MARKS 8 HIGHER THAN THE LEVEL RECORDED FOR JUNE 30 MAN CHAIRMAN KLAUS GOETTE SAID THE INCREASE IN ORDERS IS PARTLY ATTRIBUTABLE TO COMPARISON WITH A WEAK 1992 PERIOD THE ORDERS INCREASE ALSO WAS DRIVEN BY A 49 JUMP IN EXPORT ORDERS WHILE DOMESTIC ORDERS WERE DOWN 5 MR GOETTE NOTED AN INCREASE IN NEWSPAPER PRESS ORDERS FROM THE FAR EAST FOR MAN ROLAND DRUCKMASCHINEN THE GROUP'S PRESS MAKER 9312170019 931217 BUSINESS BRIEF SEIBU SAISON GROUP CONCERN'S HOTEL AFFILIATE IS SPLIT INTO TWO COMPANIES SEIBU SAISON GROUP IN JAPAN TOOK ITS RESTRUCTURING OF ITS INTERCONTINENTAL HOTELS HOLDINGS ANOTHER STEP BY SPLITTING IT INTO TWO COMPANIES THE JAPANESE RETAILING FINANCIALSERVICES AND LEISURE GROUP ANNOUNCED THAT JAN 1 IT WILL DIVIDE THE AFFILIATE INTO A COMPANY OWNING THE CHAIN'S ASSETS AND A COMPANY OPERATING THE HOTELS JOINING THE CHAIN FROM UK MERCHANT BANKER KLEINWORT BENSON LTD TO HEAD THE ASSETHOLDING SIDE WILL BE HOTEL SPECIALIST GAVIN SIMONDS HEADING THE OPERATING SIDE WILL BE ROBERT COLLIER A HOTELIER WHO JOINED THE CHAIN THREE YEARS AGO IN THE MIDDLE OF LAST YEAR SAISON BOUGHT OUT SCANDANAVIAN AIRLINES SYSTEMS' 40 STAKE IN THE HOTELS THROUGH A PURCHASE BY SEIYU LTD SAISON HOLDINGS BV HELD THE BALANCE SEIBU WHICH OPERATES SUPERMARKETS SELLING CLOTHING AND OTHER NONFOOD GOODS AS WELL AS GROCERIES IS THE CENTER OF THE SEIBU SAISON GROUP 9312170018 931217 AUR RESOURCES UNDERWRITERS SALE TORONTO AUR RESOURCES INC A MINING CONCERN SAID IT EXPECTS TO RAISE 28 MILLION CANADIAN DOLLARS US21 MILLION FROM THE SALE TO A GROUP OF UNDERWRITERS OF FIVE MILLION SHARES AT C560 US420 A SHARE AUR RESOURCES SAID THE UNDERWRITERS LED BY RICHARDSON GREENSHIELDS OF CANADA LTD WILL RESELL THE SHARES IN CANADA AUR RESOURCES SAID ITS MAJOR SHAREHOLDERS MINING CONCERNS TECK CORP AND COMINCO LTD WHICH TOGETHER OWN 205 OF AUR PLAN TO BUY A PROPORTIONATE SHARE OF THE ISSUE EQUAL TO 1025000 SHARES AUR RESOURCES HAS 452 MILLION SHARES OUTSTANDING THE COMPANY SAID PROCEEDS OF THE ISSUE WHICH IS SUBJECT TO REGULATORY APPROVAL WILL BE USED FOR GENERAL WORKING CAPITAL PURPOSES 9312170017 931217 INTERNATIONAL UNEMPLOYMENT IN BRITAIN IS 10 LONDON UNEMPLOYMENT IN BRITAIN FELL TO A SEASONALLY ADJUSTED 10 OF THE WORK FORCE IN NOVEMBER FROM 101 IN OCTOBER ACCORDING TO PROVISIONAL ESTIMATES RELEASED BY THE UK DEPARTMENT OF EMPLOYMENT THE NUMBER OF SEASONALLY ADJUSTED JOBLESS WAS ESTIMATED TO HAVE FALLEN BY 36100 IN NOVEMBER AFTER FALLING A REVISED 52100 IN OCTOBER THE JOBLESS TOTAL IN NOVEMBER WAS AN ADJUSTED 2815900 COMPARED WITH 2852000 IN OCTOBER AND 2912800 A YEAR EARLIER THE EMPLOYMENT DEPARTMENT SAID THAT SEASONALLY ADJUSTED UNEMPLOYMENT IS AT ITS LOWEST LEVEL SINCE AUGUST 1992 9312170016 931217 CORRECTION THE PUBLISHER OF VERDI BY MARY JANE PHILLIPSMATZ REVIEWED ON THE DEC 15 LEISURE & ARTS PAGE IS OXFORD UNIVERSITY PRESS 9312170015 931217 WHO'S NEWS HARSCO CORP HARSCO CORP HARRISBURG PA DEREK C HATHAWAY PRESIDENT AND CHIEF OPERATING OFFICER WILL SUCCEED MALCOLM W GAMBILL AS CHIEF EXECUTIVE OFFICER OF THIS INDUSTRIAL MANUFACTURING AND SERVICE COMPANY ON JAN 1 MR HATHAWAY 49 YEARS OLD IS ALSO EXPECTED TO SUCCEED MR GAMBILL 63 AS CHAIRMAN OF HARSCO AT THE ANNUAL SHAREHOLDERS MEETING IN APRIL THE COMPANY SAID MR HATHAWAY IS ALREADY A DIRECTOR MR GAMBILL HAS NOT INDICATED WHETHER HE WILL SERVE OUT HIS TERM ON THE BOARD WHICH ENDS IN 1996 THE TRANSITION IS CONSISTENT WITH THE EXISTING SUCCESSION PLAN OF HARSCO MR GAMBILL SAID IN A RELEASE 9312170014 931217 LEISURE & ARTS ON SPORTS DOWNSIZING'S THE ANSWER FOR DULL NFL BY FREDERICK C KLEIN THE NOTION IS AFOOT THAT THIS SEASON HAS BEEN A BAD ONE FOR THE NATIONAL FOOTBALL LEAGUE SCORING IS DOWN THOUGH NOT BY MUCH AND MORE OF IT IS BEING PROVIDED BY FIELDGOAL KICKERS THOSE LITTLE FELLOWS WHO LOOK ABOUT AS APPROPRIATE ON A PROFESSIONAL GRIDIRON AS MOPEDS AT THE INDY 500 WORSE ITS GAME IS BEING PERCEIVED AS DULL A GRIEVOUS FLAW IN AN ERA OF FLEASHORT ATTENTION SPANS WE HAVE THE LATTER CHARGE FROM NO LESS THAN SPORTS ILLUSTRATED THAT ARBITER OF OUR SPORTING TASTES THE COVER OF ITS DEC 6 ISSUE BEARS THE PHOTO OF A KNEELING NEW YORK JETS PLAYER WHO COULD BE THINKING PRAYING OR CATCHING HIS BREATH UNDER THE HEADLINE CAN THE NFL BE SAVED THE MAGAZINE ANSWERS ITSELF IN THE AFFIRMATIVE WITH THE SUBHEAD 10 WAYS TO REVIVE A BORING LEAGUE SOME OF SI'S PRESCRIPTIONS FOR THE NFL INVOLVE SUCH RELATIVE MINUTIAE AS CHANGES IN PLAYERCOMPENSATION SCHEDULING AND SUBSTITUTION RULES AND IN THE AMOUNT OF TIME PERMITTED BETWEEN PLAYS OTHERS ARE DREARILY LONG TERM ITS SOLUTION TO THE QUARTERBACKINJURY PLAGUE FOR INSTANCE IS TO RESUSCITATE THE WORLD LEAGUE AS A TRAINING GROUND FOR BACKUPS CONTRAST THAT WITH THE BOLD SOLUTION FOR QUARTERBACK INJURIES I PROPOSED A FEW YEARS AGO PUTTING THE QBS IN SKIRTS AND IMPOSING HARSH PENALTIES ON TACKLERS WHO MOLEST THEM THAT ONE HAD THE ADDITIONAL ADVANTAGE OF ADDING A NEW ITEM TO THE NFL'S LICENSED CLOTHING LINE ON ANOTHER OCCASION I ADDRESSED THE TOOMANYFIELDGOALS PROBLEM BY SUGGESTING THAT ALL KICKING FIELD GOALS EXTRA POINTS KICKOFFS AND PUNTS BE ELIMINATED AND THAT THE BOYS BE ALLOWED TO REALLY PLAY WAR BETWEEN THE GOAL LINES THERE'D BE NO CHANNEL SURFING DURING THOSE GAMES I'D BET FOR REASONS I DON'T UNDERSTAND THE NFL IGNORED MY RECOMMENDATIONS I AM UNDETERRED HOWEVER AND WITH CHARACTERISTIC CLARITY HAVE EXAMINED THE LEAGUE'S DULLNESS PLIGHT AS I SEE IT THE PROBLEM IS TOO FEW GOOD PLAYERS THE SOLUTION IS TO SCRAP MANY OF THE PRESENT TEAMS THE WISDOM OF THAT STANCE CAN BE SEEN BY HARKING BACK TO 1958 THAT WAS THE YEAR OF THE BALTIMORE COLTSNEW YORK GIANTS CHAMPIONSHIP CONTEST THAT JUST ABOUT EVERYONE AGREES WAS THE GREATEST NFL GAME EVER PLAYED IT WAS A GREAT GAME BECAUSE IT INVOLVED LOTS OF GREAT PLAYERS THE LIKES OF JOHN UNITAS RAY BERRY LENNY MOORE JIM PARKER ART DONOVAN AND GINO MARCHETTI TROD THE GREENSWARD FOR THE VICTORIOUS COLTS WHILE CHARLEY CONERLY FRANK GIFFORD KYLE ROTE ROSEY BROWN SAM HUFF AND ROSEY GRIER PERFORMED FOR THE GIANTS THE ROSTERS OF ALL 12 TEAMS THAT MADE UP THE NFL THAT SEASON WERE SIMILARLY ENDOWED LOOKING JUST AT QUARTERBACK THE POSITION THAT MAKES PRO OFFENSES WORK ONE FINDS NORM VAN BROCKLIN YA TITTLE BOBBY LAYNE BART STARR SONNY JURGENSEN EDDIE LEBARON BILL WADE ED BROWN GEORGE BLANDA LEN DAWSON AND MILT PLUM BESIDES UNITAS AND CONERLY ENOUGH GOOD ONES TO GO AROUND I'D SAY THE US POPULATION IN GOLDEN 1958 WAS ABOUT 175 MILLION PEOPLE NOW IT'S ABOUT 255 MILLION A 45 INCREASE WITH 273 SALARIED MILLIONAIRES PLAYING BASEBALL LAST SEASON AND SEEMINGLY EVERY PRO BASKETBALLER THE POSSESSOR OF A LUCRATIVE SHOE CONTRACT THERE'S NO REASON TO BELIEVE THAT PROPORTIONALLY MORE EXCELLENT ATHLETES ASPIRE TO PLAY PRO FOOTBALL TODAY GOOD SENSE THEN WOULD LIMIT THE PRESENT NUMBER OF NFL TEAMS TO NO MORE THAN 18 NOT THE 28 THAT CURRENTLY EXIST OR THE 30 THAT WILL IN 1995 TEN TEAMS HAVE GOT TO GO I KNOW SOME PEOPLE MIGHT BE MADE UNHAPPY BY SUCH A REDUCTION TEAM OWNERS WOULDN'T GET TO SPLIT THE PERIODIC BOUNTIES THAT EXPANSION BRINGS THE WINDFALL WILL COME TO 280 MILLION THAT'S 10 MILLION TIMES 28 WHEN CHARLOTTE AND JACKSONVILLE ARE ADMITTED AND ALL THE GROVELING AND FREE DINNERS THAT EXPANSION CONTENDERS CAN BE COUNTED UPON TO PROVIDE SOME FANS IN CITIES THAT LOSE TEAMS MIGHT MISS THEIR OLD FAVORITES BUT LOOK ON THE BRIGHT SIDE AS LEAGUE OFFICIALS LOVE TO POINT OUT TV HAS MADE THEIRS A NATIONAL GAME WITH PEOPLE IN SAY PEORIA AS KNOWLEDGEABLE ABOUT THE MIAMI DOLPHINS AS THEIR HOMESTATE CHICAGO BEARS SO LOCAL ATTACHMENTS AREN'T ALL THAT IMPORTANT AND IN THIS PERIOD OF CORPORATE DOWNSIZING NFL MOGULS COULD REAP PSYCHIC REWARDS FROM THE ADMIRATION OF THEIR EXECUTIVESUITE BRETHREN THERE IS AS WELL A PRECEDENT FOR NFLFRANCHISE CONSOLIDATION THE PHILADELPHIA EAGLES AND PITTSBURGH STEELERS WERE MERGED INTO THE STEAGLES FOR THE 1943 SEASON THERE WAS A WAR ON THEN AND TIMES WERE TOUGH BUT ANTIBOREDOM MEASURES SHOULD BE VIEWED AS THE MORAL EQUIVALENT OF WAR WE COULD START THE TRIMDOWN BY GETTING RID OF THE CINCINNATI BENGALS AND NEW ENGLAND PATRIOTS THEY'RE NEITHER GOOD NOR POPULAR WITH THEIR HOME FANS WE'D CONTINUE BY MERGING TEAMS THAT SHARE THE SAME CITIES THE NEW YORK GIANTS AND JETS AND LOS ANGELES RAMS AND RAIDERS THEN WE'D COMBINE ONES IN THE SAME STATE OR GEOGRAPHIC AREA LIKE THE STEELERS AND EAGLES DALLAS COWBOYS AND HOUSTON OILERS DOLPHINS AND TAMPA BAY BUCCANEERS GREEN BAY PACKERS AND MINNESOTA VIKINGS AND BEARS AND INDIANAPOLIS COLTS THAT MAKES NINE DOESN'T IT FOR THE 10TH WE COULD SHAKE IN A HAT THE NAMES OF THE REST OF THE TEAMS AND DRAW ONE AND OF COURSE FORGET ABOUT EXPANSION UNTIL THE POPULATION GROWS THE PROCESS WOULD LOOSE ENOUGH GOOD PLAYERS TO STRENGTHEN SURVIVING TEAMS CONSIDERABLY IT ALSO WOULD GENERATE SOME NEAT NICKNAMES THE COILERS FOR THE COWBOYSOILERS BOLTS FOR THE BEARSCOLTS RAMMERS FOR THE RAMSRAIDERS JINTS FOR THE JETSGIANTS THEN IF WE COULD ELIMINATE KICKING AND PUT THE QBS IN SKIRTS THE GAME'D BE PERFECT 9312170013 931217 CON ED CHARGED OVER REPORTING OF 1989 EXPLOSION BY MARGARET A JACOBS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CONSOLIDATED EDISON CO WAS INDICTED FOR ALLEGEDLY FAILING TO TRUTHFULLY AND PROMPTLY REPORT THAT A 1989 EXPLOSION IN ONE OF ITS MANHOLES RELEASED MORE THAN 200 POUNDS OF ASBESTOS INTO A RESIDENTIAL NEIGHBORHOOD THE CRIMINAL INDICTMENT IS BELIEVED TO BE THE FIRST TIME THAT A UTILITY HAS BEEN CHARGED UNDER A 13YEAROLD STATUTE THAT REQUIRES IMMEDIATE REPORTING OF HAZARDOUS SUBSTANCE RELEASES AND PROHIBITS FALSE STATEMENTS TO FEDERAL AGENCIES IN A STATEMENT CON ED SAID IT WAS PROFOUNDLY DISAPPOINTED BY THE INDICTMENT OF THE COMPANY AND THE TWO RETIRED EMPLOYEES SAYING ALLEGATIONS OF A COVERUP ARE NOT CREDIBLE GIVEN INTENSIVE MEDIA COVERAGE AND THE COMPANY'S KNOWLEDGE THAT GOVERNMENT OFFICIALS WERE CONDUCTING ASBESTOS TESTS CON ED SAID IT SHARED TEST RESULTS AS SOON AS THEY BECAME AVAILABLE ACCORDING TO PROSECUTORS THE COMPANY CONCEALED THE ASBESTOS RELEASE TO AVOID THE SIGNIFICANT EXPENSE OF LEGALLY MANDATED ASBESTOS CLEANUP PROCEDURES THE UTILITY REPORTED THE RELEASE ONLY AFTER NEWS LEAKED THAT RESIDENTS HAD CONDUCTED THEIR OWN TESTS AND FOUND ASBESTOS IN AN APARTMENT BUILDING THE INDICTMENT SAYS THE INDICTMENT NAMES THE COMPANY AS WELL AS TWO EMPLOYEES SINCE RETIRED CONSTANTINE J PAPAKRASAS ASSISTANT VICE PRESIDENT FOR STEAM OPERATIONS WHO IS 61 AND PHILIP B MCGIVNEY DIVISION MANAGER OF STEAM CONSTRUCTION 60 THE COMPANY DID NOT COOPERATE WITH OUR INVESTIGATION IN ANY MEANINGFUL WAY SAID US ATTORNEY MARY JO WHITE AT A NEWS CONFERENCE ALL THREE DEFENDANTS WERE ALSO CHARGED WITH MAKING FALSE STATEMENTS TO THE FEDERAL GOVERNMENT THE AUGUST 1989 MANHOLE BLAST WHICH KILLED TWO OF THE UTILITY'S EMPLOYEES SPREAD THE ENVIRONMENTAL CONTAMINANT OVER SEVERAL DENSELY POPULATED BLOCKS IN A MANHATTAN RESIDENTIAL AREA KNOWN AS GRAMERCY PARK ABOUT 350 RESIDENTS WERE DISPLACED FOR SEVERAL MONTHS COSTING THE COMPANY ABOUT 500000 A WEEK IN TEMPORARY HOUSING EXPENSES UNTIL 1975 CON ED WRAPPED ITS PIPES IN ASBESTOS TO REDUCE HEAT LOSS THE NATURALLY OCCURING SUBSTANCE IS KNOWN TO CAUSE CANCER AND LUNG DISEASE THOUGH OFFICIALS SAID IT WASN'T CLEAR IF THE PEOPLE EXPOSED IN THE NEW YORK BLAST WILL BE HARMED THE COMPANY FACES AS MUCH AS 2 MILLION IN FINES AND 20 YEARS PROBATION WHILE THE INDIVIDUALS FACE AS MANY AS 18 YEARS IN PRISON IF CONVICTED AND 1 MILLION EACH IN FINES 9312170012 931217 BUSINESS BRIEF SKYLINE CORP MAKER OF RVS TO BUY BACK 10 OF STOCK OUTSTANDING SKYLINE CORP ELKHART IND SAID IT WILL BUY BACK UP TO 12 MILLION OF ITS COMMON SHARES OR SLIGHTLY MORE THAN 10 OF THE STOCK OUTSTANDING ON THE OPEN MARKET OR IN PRIVATE TRANSACTIONS THE MAKER OF RECREATIONAL VEHICLES AND MANUFACTURED HOUSING HAD 112 MILLION SHARES OUTSTANDING AS OF YESTERDAY THE REPURCHASE PROGRAM APPROVED BY THE BOARD WITHOUT AN EXPIRATION DATE IS A FIRST FOR SKYLINE SAID RONALD F KLOSKA VICE CHAIRMAN OUR PRIMARY CONCERN IS NOT THE SHARE PRICE HE SAID THIS IS A WAY FOR THE COMPANY TO REINVEST IN ITSELF WE THINK IT'S A VERY GOOD VALUE SKYLINE'S SHARES WHICH HAD BEEN TRADING NEAR THEIR 1993 LOW OF 16 CLOSED UP 5 OR 875 CENTS AT 1850 YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE COMPANY SAID WILLIAM BLAIR & CO OF CHICAGO WILL ACT AS AGENT FOR THE BUYBACK 9312170011 931217 VERTEX WELLCOME DRUG ACCORD CAMBRIDGE MASS VERTEX PHARMACEUTICALS INC AND WELLCOME PLC AGREED TO COLLABORATE ON DEVELOPMENT OF DRUGS TO FIGHT THE HUMAN IMMUNODEFICIENCY VIRUS AND AIDS IN A PACT THAT WILL RESULT IN WELLCOME PAYMENTS TO VERTEX OF AS MUCH AS 42 MILLION OVER FIVE YEARS AN INITIAL 15 MILLION PAYMENT ALREADY HAS BEEN MADE VERTEX SAID THE DRUGS WILL BE ORALLY ACTIVE PROTEASE INHIBITORS WELLCOME ALSO WILL FUND DEVELOPMENT ACTIVITIES FOR THE DRUGS AT BOTH COMPANIES INCLUDING ANY CLINICAL TRIALS THE TWO COMPANIES WILL JOINTLY DEVELOP VERTEX'S HIV PROTEASE INHIBITORS THE MOST ADVANCED OF THESE ARE ALREADY IN PRECLINICAL STUDIES AND THE COMPANIES WILL DESIGN AND DEVELOP OTHERS 9312170010 931217 THURSDAY'S MARKETS TWODAY SLIDE IN STOCK PRICES COMES TO A HALT BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL BARGAINHUNTERS HALTED THE STOCK MARKET'S RECENT SLIDE AND PUSHED PRICES MODESTLY HIGHER BOND PRICES AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 922 POINTS TO 372614 STANDARD & POOR'S 500STOCK INDEX GAINED 150 TO 46334 AND THE NASDAQ COMPOSITE INDEX ROSE 256 TO 75553 BEFORE YESTERDAY'S ADVANCE THE DOW INDUSTRIALS HAD PLUNGED NEARLY 50 POINTS OVER TWO DAYS THAT TUMBLE CAME ON THE HEELS OF RECORD HIGHS FOR THE INDUSTRIAL AVERAGE AS INVESTORS PILED INTO ECONOMICALLY SENSITIVE STOCKS AMID EVIDENCE OF RENEWED STRENGTH IN THE ECONOMY FURTHER SIGNS OF AN ECONOMIC PICKUP EMERGED YESTERDAY IN A SURPRISINGLY STRONG DECEMBER SURVEY ON THE OUTLOOK FOR REGIONAL BUSINESS COMPILED BY THE FEDERAL RESERVE BANK OF PHILADELPHIA THE SURVEY CAUSED BOND PRICES TO SAG BUT ANALYSTS SAID THE DECLINES WERE RESTRAINED BY DATA ALSO SHOWING THAT INDUSTRIAL ACTIVITY SURGED WITHOUT A RISE IN PRICES FOR MANUFACTURED GOODS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 107 TO 11043 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2837 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1143 ISSUES ROSE AND 952 FELL THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17093 MARKS AND 10955 YEN COMPARED WITH 17170 MARKS AND 10985 YEN WEDNESDAY 9312170009 931217 WORK & FAMILY BY SUE SHELLENBARGER MORE COMPANIES OVERHAUL EMPLOYEE BENEFITS TO MEET A WIDER RANGE OF PERSONAL AND FAMILY NEEDS MANY EMPLOYERS HAVE WATCHED UNEASILY IN RECENT YEARS AS EMPLOYEES GREW INCREASINGLY DISSATISFIED WITH THEIR BENEFITS WHILE EMPLOYER SPENDING ON THEM SOARED NOW PITNEY BOWES QUAKER OATS NIKE SALOMON BROTHERS AND OTHERS ARE ASKING EMPLOYEES TO HELP THEM SPICE UP BENEFIT PLANS MOST START BY PROBING WORKERS' FEARS NEEDS AND DESIRES IN FOCUS GROUPS AND SURVEYS WHERE EMPLOYEES OFTEN EXPRESS WORRIES ABOUT NOT BEING ABLE TO BUY A HOUSE SEND CHILDREN TO COLLEGE OR CARE FOR ELDERLY PARENTS SAYS JACK BRUNER HEAD OF HEWITT ASSOCIATES' FLEXIBLECOMPENSATION PRACTICE THE COMPANIES THEN ASK EMPLOYEE TEAMS TO DESIGN A NEW BENEFITS PACKAGE THAT OFFERS MORE CHOICES WITHOUT RAISING COSTS MATCHING FUNDS FOR COLLEGE TUITION SUBSIDIES FOR CHILD CARE OR ELDER CARE PAID TIME OFF FOR FAMILY LEAVE GROUP DISCOUNTS ON AUTO OR HOME INSURANCE DISCOUNTED MORTGAGES LEGAL SERVICES ADDED VACATION TIME AND FINANCIALPLANNING ADVICE ARE AMONG THE OFFBEAT CHOICES THAT ARE POPPING UP EMPLOYERS OFTEN SWEETEN THE MIX WITH AFTERTAX PAYOUTS INTO LIFECYCLE ACCOUNTS FOR VARIOUS NEEDS SAYS DALE GRANT EXECUTIVE VICE PRESIDENT OF SEGAL NEW YORK MANY OF THE NEW OFFERINGS ARE FAIRLY CHEAP FOR EMPLOYERS TO SAVE MONEY THE PACKAGES MAY GIVE EMPLOYEES INCENTIVES TO MAKE HEALTHBENEFIT TRADEOFFS SUCH AS PLEDGING TO STOP SMOKING OR USING COMPANYCHOSEN DOCTOR NETWORKS THE PLANS ALSO ELIMINATE OFFERINGS THAT LACK PIZAZZ WHENEVER WE'VE ASKED PEOPLE ABOUT THEIR NEEDS THEIR HOPES THEIR FONDEST DREAMS IN LIFE NO ONE HAS EVER SAID I DREAM OF HAVING ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE' MR BRUNER SAYS THOUGH ONLY A FEW COMPANIES HAVE IMPLEMENTED THE PLANS THE IDEA IS SPARKING HOT INTEREST AS A WAY TO ATTRACT SKILLED WORKERS ESPECIALLY IF HEALTHCARE REFORM WEAKENS THE ABILITY OF EMPLOYERS TO USE HEALTH BENEFITS AS A LURE THE NUMBER OF FATHERS TAKING TIME OFF TO CARE FOR NEWBORNS CONTINUES TO CREEP UPWARD FROM MINUSCULE LEVELS PROPELLED PARTLY BY THE 1993 FAMILY AND MEDICAL LEAVE ACT'S BROAD MANDATE BY THE END OF THE YEAR A PROJECTED 32 MEN ARE EXPECTED TO TAKE ADVANTAGE OF DUPONT'S FIVEYEAROLD PATERNITYLEAVE POLICY UP FROM 18 IN 1992 NATIONSBANK WHICH IN 1991 TOOK THE UNUSUAL STEP OF PAYING MEN ON PATERNITY LEAVE SAYS ITS MALE LEAVETAKERS HAVE RISEN TO HUNDREDS ANNUALLY INSPIRED PARTLY BY THE GROWING NUMBER OF HIGHRANKING WOMEN WHO TAKE FAMILY LEAVES SAYS VIRGINIA STONE MACKEN DIRECTOR OF WORKFAMILY PROGRAMS BUT IN TODAY'S HIGHPRESSURE WORKPLACE MANY MEN PAY A HIGH PRICE TO GET TIME OFF WITH THEIR KIDS ROBERT LAMBERT RECENTLY NAMED EXECUTIVE VICE PRESIDENT HUMAN RESOURCES FOR CARTER HAWLEY HALE STORES LAST JULY STAYED HOME FOR TWO WEEKS FROM HIS JOB THEN AS STRIDE RITE'S HUMANRESOURCES HEAD TO HELP CARE FOR HIS NEWBORN SON I WANTED TO SAY TO OTHER EMPLOYEES IT'S OK TO DO THIS' HE SAYS BUT HE WORKED THE WHOLE TIME PICKING UP HIS MAIL AND SENDING AND RECEIVING FAXES CHRIS JOLLIFFE A BOSTON SOCIAL WORKER TURNED DOWN A NEW JOB AND THE CAREER ADVANCEMENT IT PROMISED BECAUSE IT WOULDN'T HAVE ALLOWED HIM ENOUGH TIME WITH HIS FIRST CHILD DUE SOON HIS CURRENT POST OFFERS GREATER FLEXIBILITY AND ALLOWS HIM TO PLAN HIS SCHEDULE IN ADVANCE IT'S JUST REALLY IMPORTANT TO ME TO PARTICIPATE IN RAISING THIS BABY HE SAYS CORPORATE ATTEMPTS TO EASE WORKFAMILY CONFLICT BYPASS MANY BLACKS SANDWICHGENERATION PRESSURES ARE MORE INTENSE AND BEGIN EARLIER IN LIFE FOR AFRICANAMERICAN WORKERS THAN FOR WHITES ACCORDING TO RESEARCH BY PEGGYE DILWORTHANDERSON A PROFESSOR OF HUMAN DEVELOPMENT AND FAMILY STUDIES AT THE UNIVERSITY OF NORTH CAROLINA BLACK WOMEN TYPICALLY SHOULDER CAREGIVING DUTIES FOR PARENTS CHILDREN AND OFTEN GRANDCHILDREN LIVING WITH THEM AS EARLY AS THEIR LATE 30S COMPARED WITH THE 40S FOR WHITE WOMEN MORE ARE SINGLE PARENTS WITH 46 OF BLACK HOUSEHOLDS HEADED BY WOMEN WITH NO SPOUSE PRESENT COMPARED WITH 13 FOR WHITES CHILD AND ELDERCARE BURDENS WEIGH HEAVILY DR DILWORTHANDERSON SAYS BLACK TEENAGE GIRLS AGED 15 THROUGH 17 ARE THREE TIMES MORE LIKELY TO HAVE BABIES THAN WHITE TEENS AND AGING BLACKS TEND TO LIVE WITH THEIR CHILDREN LONGER AS AFRICANAMERICAN CULTURE REJECTS INSTITUTIONALIZING THE AGED THOUGH THESE PATTERNS WOULD SEEM TO MAKE BLACK FAMILIES IDEAL CANDIDATES FOR WORKFAMILY HELP MOST CORPORATE PROGRAMS MISS THEM ALTOGETHER BLACK FAMILIES ARE MUCH MORE LIKELY THAN WHITES TO PROVIDE THEIR OWN CHILD AND ELDER CARE SO THE CUSTOMARY CORPORATE CHILDCARE CENTERS REFERRALS OR DISCOUNTS ARE USELESS BLACK WORKERS ALSO HAVE LITTLE ACCESS TO THE FLEXIBLE HOURS THAT EASE WORKFAMILY CONFLICT BLACK WOMEN HEAVILY EMPLOYED IN LOWPAYING SERVICE JOBS ARE ABOUT TWICE AS LIKELY AS WHITES TO WORK RIGID EVENING OR NIGHT HOURS OR ROTATING SHIFTS DR DILWORTHANDERSON SAYS IF YOU ADD UP THE LACK OF FLEXIBLE HOURS HIGH RATES OF POVERTY AND MULTIPLE GENERATIONS DEPENDENT ON SINGLEPARENT HOUSEHOLDS YOU HAVE A CAREGIVER IN TROUBLE SHE SAYS THE PRESSURES PROBABLY CONTRIBUTE TO HIGH RATES OF DIABETES HYPERTENSION AND HEART DISEASE AMONG BLACK WOMEN SHE SAYS LAYOFF SURVIVORS GET HELP FROM WORKSHOPS OFFERED BY WORK/FAMILY DIRECTIONS BOSTON INCLUDING TIPS ON EASING FAMILY STRESS AND TALKING WITH SPOUSES AND KIDS ABOUT DOWNSIZING AND INCREASED WORKLOADS MOST WORKERS WOULD TRADE THE OPPORTUNITY FOR EARLY RETIREMENT IN THE FUTURE FOR MORE FAMILY TIME TODAY ACCORDING TO A POLL FOR THE FAMILY RESEARCH COUNCIL A CONSERVATIVE WASHINGTON THINK TANK 9312170008 931217 COURT ALLOWS LAWSUIT AGAINST AMERICAN AIR BY FREQUENT FLIERS FORT WORTH TEXAS AMERICAN AIRLINES' FREQUENT FLIERS CAN SUE THE AIRLINE IN STATE COURT OVER RULE CHANGES IN THE POPULAR TRAVEL PROGRAM THE ILLINOIS SUPREME COURT SAID THE DECISION COULD EXPOSE AMERICAN TO MILLIONS OF DOLLARS IN LIABILITY COSTS AS THE PLAINTIFFS' WILL SEEK TO TRY THE CASE AS A CLASSACTION SUIT THE SUIT WOULD REPRESENT THE FOUR MILLION MEMBERS OF AMERICAN'S PROGRAM IN 1988 WHEN RULES THAT RESTRICTED THE AVAILABILITY OF FREE SEATS WERE ADOPTED THE AMR CORP UNIT SAID LOSING THE CASE COULD THREATEN THE FUTURE OF THE FREQUENTFLIER PROGRAM BY PLACING IT UNDER REGULATION OF THE STATES INSTEAD OF THE FEDERAL GOVERNMENT OTHER AIRLINES WOULD ALSO PROBABLY FACE LAWSUITS IF AMERICAN ONE OF INDUSTRY'S TWO BIGGEST CARRIERS LOSES THE CASE AMERICAN SAID IT WILL APPEAL THE ILLINOIS COURT'S DECISION TO THE US SUPREME COURT ON GROUNDS THAT THE ISSUE RELATES TO FEDERAL NOT STATE LAW THE FORT WORTH TEXAS AIRLINE ALSO STRONGLY DENIED PLAINTIFFS' ALLEGATIONS THAT IT ILLEGALLY CHANGED ITS FREQUENTFLIER RULES LEGAL EXPERTS SAID THEY DOUBTED THE US SUPREME COURT WOULD HEAR AMERICAN'S CASE IN PART BECAUSE THE COURT HAS ALREADY HAD ONE OPPORTUNITY TO TAKE THE CASE AND IT SENT IT BACK TO THE ILLINOIS SUPREME COURT THE CASE STEMS FROM A 1988 DECISION BY AMERICAN THAT RESTRICTED FREQUENTFLIER MEMBERS' ABILITY TO CASH IN THEIR MILES SINCE THE PROGRAM'S INCEPTION IN 1981 MEMBERS COULD REDEEM THEIR MILES FOR ANY AVAILABLE FLIGHT BUT THE 1988 RULES CUT BACK THE NUMBER OF FREE SEATS ON CERTAIN FLIGHTS AND IMPOSED BLACKOUT DATES WHEN THE TICKETS COULD NOT BE USED OTHER AIRLINES MADE SIMILAR MOVES 9312170007 931217 TWO CURRAGH ASSETS ARE TO BE PURCHASED BY FOUR MINING FIRMS VANCOUVER BRITISH COLUMBIA FOUR MINING COMPANIES SAID THEY AGREED TO PURCHASE TWO MINERAL PROPERTIES FROM THE RECEIVER FOR CURRAGH INC THE TROUBLED TORONTO MINING CONCERN THAT WENT INTO RECEIVERSHIP EARLIER THIS YEAR COMINCO LTD AND TECK CORP BOTH VANCOUVER MINING CONCERNS EACH AGREED TO PURCHASE A 25 STAKE IN THE CIRQUE PROPERTY FORMERLY CALLED STRONSAY IN NORTHERN BRITISH COLUMBIA AND IN SA DENA HES A MINE IN YUKON BOTH PROPERTIES CONTAIN PRIMARILY ZINC AND LEAD DEPOSITS KOREA ZINC CO AND SAMSUNG CORP OF KOREA AGREED TO PURCHASE THE REMAINING INTEREST IN THE PROPERTIES A LAWYER REPRESENTING BANK OF NOVA SCOTIA OF TORONTO SAID THE BANK STANDS TO RECEIVE THE PROCEEDS OF THE TRANSACTION 3475 MILLION CANADIAN DOLLARS US261 MILLION SINCE IT IS THE HIGHESTRANKING CREDITOR OF CURRAGH SUBJECT TO COURT APPROVAL CURRAGH HURT BY A SLUMPING METALS SECTOR FILED FOR COURT PROTECTION FROM CREDITORS EARLIER THIS YEAR AN ONTARIO COURT SUBSEQUENTLY APPOINTED A RECEIVER FOR CURRAGH'S ASSETS AFTER THE COMPANY WAS UNABLE TO SUBMIT A RESTRUCTURING PLAN THE SA DENA HES MINE HAS BEEN IDLED SINCE LATE 1992 AND THE CIRQUE DEPOSIT HASN'T BEEN DEVELOPED COMINCO AND TECK SAID RESUMPTION OF WORK AT THE MINES DEPENDS ON HIGHER METAL PRICES THE OTHER MAIN ASSET FORMERLY HELD BY CURRAGH IS THE FARO ZINC AND LEAD MINE IN YUKON THE TRANSACTION IS SUBJECT TO COURT AND REGULATORY APPROVAL THE RECEIVER OF THE TWO MINERAL PROPERTIES IS COOPERS & LYBRAND LTD OF TORONTO 9312170006 931217 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS SUPPOSE A LAWYER JETS SIX HOURS ACROSS THE COUNTRY FOR A MAJOR CLIENT ON THE PLANE THE LAWYER PUTS IN FIVE HOURS OF WORK FOR ANOTHER CLIENT TOTAL BILLABLE TIME ELEVEN HOURS RIGHT WRONG SAYS THE AMERICAN BAR ASSOCIATION ISSUING ITS FIRST FORMAL OPINION ON THE ETHICS OF HOURLY BILLING THE ABA ASSERTS THAT CHARGING MORE THAN ONE CLIENT FOR THE SAME HOURS OR FOR OVERLAPPING WORK IS FORBIDDEN UNLESS THE CLIENTS GIVE THEIR APPROVAL THIS MAY COME AS A RUDE SURPRISE TO SOME LAWYERS WHO BILL THIS WAY ROUTINELY AND THE IMPLICATION THAT DOUBLEBILLING OCCURS AT ALL MAY SHOCK PEOPLE WHO HAVEN'T RETAINED A LARGE LAW FIRM LATELY BUT THE 16PAGE OPINION WHICH HASN'T YET BEEN PUBLISHED SUGGESTS THAT SUCH PRACTICES MAY BE A MAJOR CONTRIBUTING FACTOR TO THE DISCOURAGING PUBLIC OPINION OF THE PROFESSION NO WONDER MANY BIGFIRM LAWYERS AMONG THE FEW PROFESSIONALS WHO STILL TYPICALLY BILL BY THE HOUR ARE EXPERTS AT FINDING CREATIVE WAYS TO FATTEN UP THEIR TIME SHEETS THEIR REASONS ARE A POTENT MIX OF ELEMENTARY ECONOMICS AND RAW SURVIVAL INSTINCT A FIRM'S EARNINGS ARE A FUNCTION OF THE FIRM'S BILLABLE HOURS AND TIME SHEETS ARE USUALLY A FACTOR IN DETERMINING INDIVIDUAL ASSOCIATES' PROMOTIONS AND BONUSES AS WELL AS PARTNERS' PROFIT SHARES IF THE ABA OPINION SUCCEEDS IN CURTAILING TIMESHEET ABUSES IT COULD EMERGE AS ONE OF THE MOST IMPORTANT DOCUMENTS AFFECTING THE PROFESSION IN YEARS WHILE ABA ETHICS RULES AND OPINIONS AREN'T LEGALLY BINDING IN THEMSELVES THEY ARE FREQUENTLY ADOPTED BY STATES AND CITED BY JUDGES THE AIRPLANE SCENARIO IN WHICH THE CLIENT WHO REQUIRED THE BUSINESS TRIP GETS BILLED FOR THE FLIGHT TIME AND ANOTHER CLIENT GETS BILLED FOR WORK DONE WHILE ALOFT ISN'T THE ONLY MOVE THE ABA HAS TARGETED OTHERS INCLUDE SCHEDULING SEVERAL COURT APPEARANCES FOR SEVERAL DIFFERENT CLIENTS ON THE SAME DAY AND BILLING EACH CLIENT FOR THE COLLECTIVE TIME SPENT AWAY FROM THE OFFICE THERE'S ALSO THE RECYCLEDMEMO BONANZA AN ATTORNEY FINDS THAT OLD RESEARCH CAN BE GIVEN TO A NEW CLIENT AND THE LAWYER CHARGES THAT CLIENT AS IF THE WORK HAD BEEN STARTED FROM SCRATCH LAWYERS USUALLY JUSTIFY SUCH ACTIVITY BY TELLING THEMSELVES THAT THE CLIENT HAD AGREED TO BE BILLED BY THE HOUR AND THEREFORE HAD EXPRESSED A WILLINGNESS TO PAY FOR THE ENTIRE PROJECT AND THAT THE ATTORNEYS' EFFICIENCY SHOULD WORK TO THE BENEFIT OF THE LAW FIRM THE ABA OPINION EXPLICITLY REJECTS SUCH REASONING THE LAWYER WHO HAS AGREED TO BILL SOLELY ON THE BASIS OF TIME SPENT IS OBLIGED TO PASS THE BENEFIT OF THESE ECONOMIES ON TO THE CLIENT IT SAYS THE OPINION PREPARED OVER THE PAST YEAR BY THE ABA'S EIGHTMEMBER ETHICS COMMITTEE WAS PROMPTED BY A NUMBER OF INQUIRIES FROM LAWYERS ACROSS THE COUNTRY SAYS COMMITTEE MEMBER LAWRENCE FOX A PARTNER AT DRINKER BIDDLE & REATH IN PHILADELPHIA THE COMMITTEE ALSO ADDRESSED SUCH LAWFIRM PRACTICES AS ADDING PREMIUMS TO OUTOFPOCKET EXPENSES AND THUS PROFITING OFF OF FAXES PHONE CALLS PHOTOCOPIES AND THE LIKE ITS CONCLUSION THE LAWYER'S STOCK IN TRADE IS THE SALE OF LEGAL SERVICES NOT PHOTOCOPY PAPER TUNAFISH SANDWICHES COMPUTER TIME OR MESSENGER SERVICES AND NO SURCHARGE SHOULD BE ASSESSED UNLESS THE CLIENT AGREES OTHERWISE TOP PARTNERS AT BIG LAW FIRMS ARE VOICING APPROVAL OF THE OPINION WHILE DISCOUNTING ITS INSINUATIONS IT SEEMS TO TRACK OUR BILLING PRACTICES WE ALWAYS DISCLOSE TO THE CLIENT THE BASIS ON WHICH THEY ARE TO BE BILLED SAYS PATRICK MCCARTAN MANAGING PARTNER OF CLEVELAND'S JONES DAY REAVIS & POGUE THE COUNTRY'S SECONDLARGEST LAW FIRM BUT THE GENERALS MAY NOT ALWAYS KNOW WHAT GOES ON IN THE TRENCHES DANIEL CAPRA A PROFESSOR AT FORDHAM LAW SCHOOL AND LAWFIRM CONSULTANT SAYS HE HAS BEEN PRIVY TO CONVERSATIONS AT FIRMS IN WHICH SUCH PRACTICES HAVE BEEN DISCUSSED BILLPADDING IS A PERENNIAL THEME OF THE RODENT AN UNDERGROUND NEWSLETTER FOR ASSOCIATES ONE EDITOR RECALLS THAT AS A YOUNG LAWYER IN A SOUTHERN CALIFORNIA OFFICE OF A BIG FIRM HE FLEW FIRSTCLASS TO NEW YORK DRINKING CHAMPAGNE AND WATCHING THE MOVIE ONLY TO ARRIVE AT HIS HOTEL AND REMEMBER THAT HE NEEDED TO REVIEW SOME DOCUMENTS HE BILLED AN ADDITIONAL THREE HOURS FOR WORK HE COULD EASILY HAVE DONE ON THE PLANE WITH CERTAIN BIG CLIENTS THE FIRM FELT IT COULD GET AWAY WITH THAT SAYS THE EDITOR WHO PUBLISHES THE NEWSLETTER ANONYMOUSLY PATRICIA GILLETTE A LABORLAW PARTNER AT SAN FRANCISCO'S HELLER EHRMAN WHITE & MCAULIFFE SAYS PARTNERS REVIEWING ASSOCIATES' TIME SHEETS MIGHT NOT BE ABLE TO DETECT DOUBLEBILLING IF IT DID SLIP BY THERE WOULD BE NO WAY FOR THE CLIENT TO KNOW SHE SAYS SINCE TIME SHEETS TYPICALLY SUM UP QUARTERHOURS AND DON'T REVEAL WHEN THEY WERE ACCRUED SHE SAYS SHE INSTRUCTS LAWYERS IN HER DEPARTMENT NEVER TO DOUBLEBILL CLIENTS OF COURSE HAVE LONG BEEN FIGHTING TO GAIN SOME CONTROL OVER THEIR LAWYERS' BILLING PRACTICES ZOE BAIRD GENERAL COUNSEL OF AETNA LIFE & CASUALTY CO SAYS HOURLY BILLING CAUSES LAW FIRMS TO SET THEMSELVES UP FOR A CONFLICT OF INTEREST WITH THEIR CLIENTS ON THE ECONOMICS OF THE PROFESSION SHE REQUESTS ALL SIGNIFICANT OUTSIDE LEGAL WORK BE DONE ON A FLATFEE OR SIMILAR VALUEBILLING BASIS AND BENJAMIN W HEINEMAN JR GENERAL COUNSEL OF GENERAL ELECTRIC CO NOTES THAT FIRMS THAT BILL EXCESSIVELY HAVE ALREADY BEGUN TO BE PUNISHED BY THE MARKETPLACE SIDNEY N HERMAN MANAGING PARTNER OF BARTLIT BECK HERMAN PALENCHAR & SCOTT IN CHICAGO SAYS WHILE THIS MAY BE SO MORE NEEDS TO BE SAID AND DONE ABOUT THE PITFALLS OF HOURLY BILLING MR HERMAN WHOSE FIRM PROMISES TO OFFER CLIENTS ALTERNATIVES TO TRADITIONAL FEE STRUCTURES ADDS THE ABA OUGHT TO BE GETTING AT THE ROOT PROBLEM A SYSTEM THAT REWARDS INEFFICIENCY 9312170005 931217 FLEMING TO POST 4THPERIOD RESULTS BELOW FORECASTS BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL OKLAHOMA CITY FLEMING COS FACING SLUMPING SALES AND LOSSES FROM LOANS TO ITS RETAIL CUSTOMERS SAID IT EXPECTS TO REPORT FOURTHQUARTER EARNINGS FAR BELOW ANALYSTS' EXPECTATIONS THE NEWS SENT THE WHOLESALE FOOD DISTRIBUTOR'S STOCK DOWN 350 OR 12 TO 2675 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE FLEMING SAID IT EXPECTS TO REPORT A FOURTHQUARTER PROFIT OF BETWEEN 40 CENTS AND 45 CENTS A SHARE BEFORE A ONETIME CHARGE COMPARED WITH PROJECTIONS BY INDUSTRY ANALYSTS OF ABOUT 70 CENTS A SHARE IN THE 1992 FOURTH QUARTER THE COMPANY EARNED 24 MILLION OR 66 CENTS A SHARE CALLING THE COMPANY'S OPERATING PERFORMANCE TOTALLY UNSATISFACTORY ROBERT E STAUTH PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID HE WAS REVIEWING ALL ASPECTS OF ITS BUSINESS WITH AN EYE TOWARD POSSIBLE SALES OF UNITS CONSOLIDATIONS OF FACILITIES STAFF REDUCTIONS AND OTHER RESTRUCTURING MOVES WE ARE IN THE PROCESS OF VIRTUALLY RELOOKING AT HOW FLEMING AS A COMPANY DOES BUSINESS SAID MR STAUTH A LONGTIME COMPANY EXECUTIVE WHO WAS NAMED CEO IN OCTOBER WITH MORE LARGE CHAINS EFFECTIVELY ACTING AS THEIR OWN WHOLESALERS AND RETAILERS MOVING TO DEAL DIRECTLY WITH MANUFACTURERS MR STAUTH SAID FLEMING'S FUTURE IS NOT AS A WHOLESALER BUT AS A FOOD MARKETING COMPANY AND A FOOD DISTRIBUTOR A COMPANY SPOKESMAN SAID FLEMING IS ALSO CONSIDERING INCREASING ITS OWN RETAIL OPERATIONS WHICH ACCOUNTED FOR ABOUT 5 OF ITS 1992 SALES FLEMING HAD ORIGINALLY PROJECTED SALES GROWTH OF AS MUCH AS 3 DURING 1993 BUT AMID A SLUGGISH ECONOMY AND INCREASING COMPETITION MR STAUTH SAID HE EXPECTED SALES TO BE RELATIVELY FLAT COMPARED WITH 1992 WHEN THE COMPANY RECORDED ABOUT 13 BILLION IN SALES MEANWHILE ANALYSTS SAID FLEMING HAS ALSO GOTTEN INTO TROUBLE BECAUSE OF ITS AGGRESSIVE EFFORTS IN RECENT YEARS TO REPLACE BUSINESS LOST WHEN LARGE SUPERMARKET CHAINS BEGAN ACTING AS THEIR OWN DISTRIBUTORS TO MAKE UP FOR THE LOST REVENUES FLEMING TOOK EQUITY INVESTMENTS IN AND EXTENDED LOANS TO SMALLER RETAILERS THAT BECAME FLEMING CUSTOMERS THE CREDITWORTHINESS OF SOME OF THE NEW BUSINESS HAS TURNED OUT TO BE QUESTIONABLE AND THEY ARE IN A POSITION NOW WHERE THEY ARE WRITING A LOT OF IT OFF SAID GARY VINEBERG A MERRILL LYNCH & CO ANALYST INDEED FLEMING SAID YESTERDAY THAT LOSSES FROM SUCH LOANS WOULD TOTAL ABOUT 20 MILLION FOR THE FOURTH QUARTER AND MR STAUTH SAID THAT WHILE THE EQUITY AND LOAN PROGRAM WILL CONTINUE WE WILL HAVE A MORECAUTIOUS EYE WHEN WE SELECT THE RETAILERS WHO TAKE PART IN IT FLEMING SAID ITS OPERATING RESULTS WERE ALSO HURT BY ABOUT 7 MILLION IN INVENTORY ACCOUNTING ADJUSTMENTS IN ADDITION THE COMPANY SAID IT WOULD TAKE A FOURTHQUARTER EXTRAORDINARY CHARGE OF 27 MILLION OR SEVEN CENTS A SHARE FOR THE EARLY RETIREMENT OF 63 MILLION OF ITS 95 DEBENTURES 9312170004 931217 CANADIAN EXPORTS TO US REACHED RECORD IN OCTOBER BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADIAN INDUSTRY EXPORTED A RECORD AMOUNT OF GOODS TO THE US IN OCTOBER BOOSTING CANADIAN ECONOMIC GROWTH CANADIAN SHIPMENTS TO THE US ROSE 31 IN OCTOBER FROM SEPTEMBER TO TOTAL 1309 BILLION CANADIAN DOLLARS US982 BILLION OR MORE THAN 81 OF CANADA'S TOTAL EXPORTS STATISTICS CANADA A GOVERNMENT AGENCY SAID THE INCREASED CANADIAN SHIPMENTS INCLUDED AUTOS LUMBER AND OFFICE EQUIPMENT CANADIAN IMPORTS FROM THE US ROSE 24 IN OCTOBER FROM SEPTEMBER TO TOTAL C1085 BILLION OR MORE THAN 74 OF CANADA'S TOTAL IMPORTS THE TWO COUNTRIES WHICH HAVE BEEN GRADUALLY DISMANTLING TARIFFS AND OTHER BARRIERS TO EACH OTHER'S GOODS FOR THE PAST FIVE YEARS DO MORE TWOWAY TRADE THAN ANY OTHER PAIR OF NATIONS CANADA'S EXPORTS TO THE US ARE FUELING AN ADVANCE IN THE CANADIAN ECONOMY CANADIAN DOMESTIC DEMAND HAS REMAINED SLUGGISH LED BY EXPORTS MANUFACTURERS' SHIPMENTS IN OCTOBER INCREASED FOR THE THIRD CONSECUTIVE MONTH RISING 02 FROM SEPTEMBER STATISTICS CANADA REPORTED CANADIAN MANUFACTURERS HAVE BECOME HIGHLY COST COMPETITIVE IN THE US AND OTHER MARKETS AS A RESULT OF A 14 DECLINE IN THE CANADIAN DOLLAR AGAINST ITS US COUNTERPART IN THE PAST TWO YEARS ANOTHER FACTOR HAS BEEN CANADA'S LOW WAGE SETTLEMENTS MAJOR WAGE SETTLEMENTS IN THE FIRST 10 MONTHS OF THIS YEAR PROVIDED FOR AVERAGE ANNUALWAGE INCREASES OF ONLY 08 THE LABOUR DEPARTMENT REPORTED YESTERDAY THE DEPARTMENT SAID THIS YEAR'S WAGE SETTLEMENTS ARE EXPECTED TO SHOW THE SMALLEST AVERAGE RISE SINCE THE DEPARTMENT STARTED COMPILING THE WAGE DATA 15 YEARS AGO 9312170003 931217 ADIDAS IS SEEKING A KICK FROM SOCCER WITH ITS 177 SHOE SPORTING GOODS MAKER HOPES PRICEY PREDATOR' MODEL WILL REVOLUTIONIZE GAME BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL GERMAN SPORTINGGOODS MAKER ADIDAS AG IS PLEDGING TO REVOLUTIONIZE WORLD SOCCER SHOWN TO THE PUBLIC IN LAS VEGAS FRIDAY NIGHT THE COMPANY'S NEW SOCCER SHOE COST 5 MILLION TO DEVELOP AND INDEED LOOKS FUTURISTIC INSTEAD OF AN EVEN LEATHER SURFACE THE NEW FOOTWEAR SPORTS RUBBER RIDGES WITH SMALL INDENTS THAT ADIDAS CLAIMS WILL ENABLE PLAYERS TO GIVE MORE SPIN TO THE BALL THE SPORTS EQUIPMENT SUPPLIER BASED IN HERZOGENAURACH GERMANY SAYS IT EXPECTS AT LEAST TWO OR THREE PROFESSIONALS TO WEAR THE NEW MODEL DURING NEXT SUMMER'S WORLD CUP SOCCER TOURNAMENT HOBBY PLAYERS GET THEIR SHOT AT THE NEW PRODUCT IN MAY 1994 WHEN IT IS SCHEDULED TO HIT EUROPEAN SPORTS STORES HOWEVER RETAILERS SAY THE SHOE'S HEFTY PRICE OF ABOUT 177 MIGHT LIMIT DEMAND TO ONLY THE MOST DEDICATED PLAYERS THREE HUNDRED MARKS FOR A PAIR OF SOCCER SHOES SAYS ROBERTO COLOMBETTI AT REEBOHAUS GMBH A LARGE SPORTS STORE IN BONN WE'RE BARELY SELLING THE COPA MONDIAL MODEL AND THAT COSTS ONLY 180 MARKS BUT EXPERTS SAY THE SHOE'S EXTRA KICK MIGHT BE WORTH THE ADDITIONAL CASH IT'S NOT GOING TO CHANGE THE SPORT SAYS WALTER GAGG TECHNICAL DIRECTOR AT THE SWISSBASED FEDERATION INTERNATIONALE DE FOOTBALL ASSOCIATION OR FIFA BUT A GOOD PLAYER COULD BE ABLE TO MAKE MORE DANGEROUS SHOTS AND IT'S GOING TO BE HARDER FOR THE GOALIE TO HOLD A BALL WITH MORE SPIN HE EXPLAINS BAPTIZED PREDATOR THE NEW SHOE IS MODELED AFTER SLIGHTLY STICKY PINGPONG BATS THAT KEEP ATTACHED TO A BALL LONGER THAN BATS WITHOUT A RUBBER SURFACE CALLED PULSION THE RUBBER COMPOUND COATING ADIDAS'S NEW FOOTWEAR IS DESIGNED TO CREATE A LARGER SWEET SPOT THE NAME GIVEN TO THE AREA OF A SHOE GIVING PLAYERS THE MOST POSSIBLE CONTROL WHEN SHOOTING THE BALL IT ALSO CREATES A BOUNCYBALL EFFECT WHICH MEANS THAT PLAYERS NEED LESS FORCE FOR A SHOT WHILE OBSERVERS AGREE THAT FOOTWEAR IS AMONG SOCCER PLAYERS' MOST IMPORTANT EQUIPMENT SOME SAY ITS INFLUENCE ON ATHLETES' PERFORMANCE IS HARDER TO MEASURE THAN ADIDAS CLAIMS IT'S MUCH MORE DIFFICULT TO MONITOR THE IMPACT OF A SOCCER SHOE THAN THAT OF A NEW TENNIS RACKET OR PAIR OF SKIS SAYS FELIX MAGATH A COACH WITH GERMANY'S HAMBURGER SPORT VEREIN SOCCER CLUB WHICH CURRENTLY HOLDS FIFTH PLACE IN THE NATIONAL BUNDESLIGA PROFESSIONAL LEAGUE YOU CAN NEVER REALLY MEASURE ACHIEVEMENT IN SOCCER IT DEPENDS ON TOO MANY FACTORS IT'S A TEAM SPORT SAYS MR MAGATH A BUNDESLIGA STAR IN THE 1970S TWO OF HIS PLAYERS TESTED THE SHOE HOWEVER AND MR MAGATH SAYS THEY WERE THRILLED WITH IT BUT LIKE FIFA'S MR GAGG THE COACH SAYS PROFESSIONALS MIGHT HESITATE TO SWITCH TO THE NEW SHOE SOON INSIDERS SAY PLAYERS' ATTACHMENT TO THEIR SHOES IS BASED ON BOTH PERFORMANCE AND SUPERSTITION AND SOME PROFESSIONALS MAKE GREAT EFFORTS TO KEEP A SHOE EVEN WHEN THEIR TEAM'S SPONSOR CHANGES ADIDAS ISN'T DISCLOSING HOW MUCH IT WILL SPEND TO PERSUADE PLAYERS AND THE PUBLIC OF THE PRODUCT'S QUALITIES BUT SIMON SKIRROW WHO HEADS ADIDAS' SOCCER BUSINESS SAYS THE ADVERTISING BUDGET WILL BE SIGNIFICANT COMPARED TO ANYTHING ELSE WE'VE DONE IN THE PAST LEAGAS DELANEY PARTNERSHIP LTD THE LONDONBASED AD AGENCY THAT MARKETS ADIDAS'S PRODUCTS WORLDWIDE IS DEVELOPING PRINT ADS AND TWO TELEVISION COMMERCIALS THAT ARE PLANNED TO AIR ON BOTH SATELLITE AND NATIONAL TV CHANNELS THROUGHOUT EUROPE BETWEEN APRIL AND SEPTEMBER 1994 THE SPOTS WILL TARGET 12TO20YEAROLD SOCCER FANS ADIDAS ACCOUNT DIRECTOR TIM LITTLE SAYS THE COMMERCIALS WILL BE RELATIVELY TECHNICAL AND FOCUS ON THE PRODUCT'S BENEFITS 9312170002 931217 SUPERFUND PLAN WOULD PUT TAX ON INSURERS CLINTON CLOSE TO ENDORSING A LEVY OF 500 MILLION AS PART OF COMPROMISE BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS ON THE VERGE OF ENDORSING A TAX OF 500 MILLION A YEAR ON INSURERS TO FUND CLEANUPS OF HAZARDOUSWASTE SITES THE PROPOSED TAX IS PART OF A COMPROMISE THAT APPEARS TO RESOLVE DIFFERENCES WITHIN THE ADMINISTRATION OVER REWRITING THE COMPLEX AND MUCHCRITICIZED SUPERFUND LAW THE PROPOSAL A STRIKING DEPARTURE FROM CURRENT PRACTICE WOULD REDUCE THE LIABILITY OF INDIVIDUAL INSURERS AND POLLUTERS BY BILLIONS OF DOLLARS AND SIGNIFICANTLY REDUCE THE NUMBER OF SUPERFUNDRELATED LAWSUITS UNDER THE COMPROMISE PLAN BUSINESSES WOULD STILL BE HELD LIABLE FOR SOME OF THE COSTS ASSOCIATED WITH CLEANING UP PRE1980 HAZARDOUSWASTE SITES BUT THE MAJORITY OF THE COSTS WOULD BE PAID OUT OF THE NEW 500 MILLION FUND THE COMPROMISE WAS APPROVED BY TREASURY SECRETARY LLOYD BENTSEN BUT HASN'T YET BEEN CLEARED BY EPA ADMINISTRATOR CAROL BROWNER OR PRESIDENT CLINTON HOWEVER BOTH ARE CONSIDERED LIKELY TO ENDORSE THE PLAN WHICH GREW OUT OF A PROPOSAL SUBMITTED TO AN INTERAGENCY PANEL BY THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL WHETHER CONGRESS WOULD APPROVE THE NEW PROPOSAL REMAINS UNCERTAIN INFLUENTIAL DEMOCRATS ON CAPITOL HILL HAVE PUT THE ADMINISTRATION ON NOTICE THAT THEY DON'T WANT ELABORATE CHANGES IN THE SUPERFUND LIABILITY SYSTEM AND ENVIRONMENTAL GROUPS AND THE INSURANCE INDUSTRY HAVE YET TO BE HEARD FROM CURRENTLY BUSINESSES ARE HELD LIABLE FOR CLEANUP OF HAZARDOUS WASTE DUMPED BEFORE PASSAGE OF THE SUPERFUND LAW EVEN IF IT WAS LEGAL TO DUMP THE WASTE AT THE TIME IN SOME INSTANCES THE COMPANIES ARE LIABLE EVEN THOUGH THEY WERE DIRECTED TO DUMP THE WASTE AT A PARTICULAR SITE BY A STATE GOVERNMENT THIS SYSTEM HAS BEEN DENOUNCED AS UNFAIR BY MOST OF THE BUSINESS COMMUNITY AND ESPECIALLY BY THE INSURANCE INDUSTRY WHICH HAS ENDED UP PAYING MANY OF THE BILLS BUT ENVIRONMENTALISTS HAVE COUNTERED THAT IT'S NECESSARY TO MAKE THE POLLUTER PAY AS A DETERRENT AND THAT TAXPAYERS SHOULDN'T BE STUCK WITH THE TAB BOTH SIDES HAVE COMPLAINED THAT THE CURRENT ARRANGEMENT WASTES TOO MUCH MONEY ON LITIGATION COSTS WHICH REPRESENT ROUGHLY ONEQUARTER OF ALL PUBLIC AND PRIVATE MONEY SPENT ON SUPERFUND AND TOO LITTLE ON CLEANING UP WASTE SITES THE NEW PROPOSAL WOULD MANDATE THE ELIMINATION OF 95 OF ALL LITIGATION INVOLVING INSURANCE COMPANIES' LIABILITY FOR PRE1980 WASTE THIS WOULD BE ACHIEVED BY HAVING THE FEDERAL GOVERNMENT PAY OUT OF ITS INSURANCEINDUSTRYFUNDED KITTY SETTLEMENT FEES TO POLLUTING COMPANIES THAT ARE CURRENTLY SUING THEIR INSURERS TO RECOUP PRE1980 SUPERFUND COSTS TO MAKE SURE THAT POLLUTERS END UP PAYING SOME OF THE CLEANUP COSTS HOWEVER SETTLEMENT FEES WOULDN'T BE PERMITTED TO COVER MORE THAN 80 OF A COMPANY'S SUPERFUND LIABILITY ONLY PROPERTY AND CASUALTY INSURERS WOULD BE SUBJECT TO THE NEW SUPERFUND TAX INSURANCE INDUSTRY REPRESENTATIVES HAVE ALREADY TOLD THE CLINTON ADMINISTRATION THAT THEY'RE WILLING TO PAY 300 MILLION ANNUALLY IN NEW TAXES IN EXCHANGE FOR ELIMINATING THE CURRENT SUPERFUND LIABILITY SYSTEM THE NEW PLAN WOULD HAVE THEM PAY 200 MILLION MORE BUT THAT AMOUNT MIGHT HAVE TO BE INCREASED IN THE FUTURE IF THE 500 MILLION FUND ISN'T SUFFICIENT TO ELIMINATE 95 OF ALL SUPERFUND LITIGATION POLLUTING BUSINESSES HELD LIABLE FOR SUPERFUND CLEANUPS WOULDN'T BE PREVENTED OUTRIGHT FROM SUING THEIR INSURERS TO RECOUP ALL SUPERFUND COSTS IN LIEU OF ACCEPTING A FEDERALLY FUNDED SETTLEMENT BUT THE PLAN WOULD MAKE IT FAR LESS APPETIZING TO TAKE THESE DISPUTES TO THE COURTS BECAUSE SETTLEMENT FEES WOULDN'T BE AVAILABLE TO BUSINESSES THAT CHOOSE TO LITIGATE IN ANY CASE INSURERS IF SUED COULD DRAW ON THE 500 MILLION FUND TO PAY MUCH OR POSSIBLY ALL OF THEIR COURT COSTS COMBINED WITH AN EARLIER COMPROMISE WORKED OUT LAST MONTH BETWEEN THE TREASURY AND THE EPA THE NEW SCHEME WOULD DRASTICALLY CHANGE THE WAY BUSINESS PAYS FOR SUPERFUND COSTS THE PREVIOUS COMPROMISE CONCERNED THE ISSUE OF JOINT AND SEVERAL LIABILITY WHICH ALLOWS THE FEDERAL GOVERNMENT TO REQUIRE A BUSINESS TO PAY FOR CLEANING UP AN ENTIRE SUPERFUND SITE EVEN IF THE BUSINESS WAS RESPONSIBLE FOR ONLY A SMALL PORTION OF THE WASTE THE EPA FAVORED KEEPING A VERSION OF JOINT AND SEVERAL LIABILITY WHILE THE TREASURY FAVORED ELIMINATING IT EVENTUALLY THE TWO AGENCIES AGREED TO MAINTAIN IT BUT TO CAP THE AMOUNT THAT A COMPANY WOULD HAVE TO PAY AT A LEVEL THAT HASN'T YET BEEN SPECIFIED 9312170001 931217 WHO'S NEWS ARMCO NAMES WILL TO SUCCEED PURDUM AS CHIEF EXECUTIVE PITTSBURGH ARMCO INC SAID IT NAMED JAMES F WILL AS CHIEF EXECUTIVE OFFICER SUCCEEDING CHAIRMAN ROBERT L PURDUM WHO IS STEPPING DOWN ALTHOUGH MANY ANALYSTS EXPECTED MR PURDUM WHO IS 58 YEARS OLD AND HAS 31 YEARS WITH THE COMPANY WOULD EVENTUALLY STEP ASIDE AS CHIEF THEY DIDN'T EXPECT THE MOVE SO SOON MR WILL 55 HAS ONLY BEEN WITH ARMCO SINCE APRIL 1992 AS ITS PRESIDENT AND ANALYSTS HAD EXPECTED A LONGER TRANSITION PERIOD THE CHANGE IS EFFECTIVE JAN 1 MR PURDUM WILL REMAIN AS CHAIRMAN ANALYSTS NOTED THAT MR WILL'S SPECIALTYSTEEL OPERATING EXPERIENCE IS MUCH MORE EXTENSIVE THAN THAT OF MR PURDUM WHO SPENT MUCH OF HIS CAREER OVERSEEING CARBON STEEL AND ARMCO'S DIVERSIFIED BUSINESSES SUCH AS CONSTRUCTION MR WILL JOINED ARMCO IN 1992 WHEN IT BOUGHT SPECIALTYSTEELMAKER CYCLOPS INDUSTRIES INC WHERE HE WAS PRESIDENT AND CHIEF IN THE LAST FEW YEARS ARMCO HAS BEGUN FOCUSING ON THE MORE PROFITABLE SPECIALTYSTEEL BUSINESS REDUCING EXPOSURE TO CARBON STEEL AND AGREEING TO SELL ITS DIVERSIFIED BUSINESSES CLEARLY THE RESTRUCTURING OF THE COMPANY NECESSITATES SOMEONE WITH GREATER STEEL OPERATING EXPERIENCE SAID J CLARENCE MORRISON AN ANALYST WITH PRUDENTIAL SECURITIES INC JIM WILL HAS HAD A LOT OF EXPERIENCE ON THE SPECIALTY SIDE MR PURDUM INITIATED ARMCO'S RESTRUCTURING HE SAID HE STEPPED DOWN AS CHIEF TO SPEND MORE TIME WITH HIS FAMILY AND DISMISSED SUGGESTIONS THAT THE BOARD WAS IN A RUSH TO NAME MR WILL AS CHIEF THIS WAS ENTIRELY MY DECISION HE SAID DIRECTORS ECHOED MR PURDUM'S COMMENTS WE'RE DISAPPOINTED THAT BOB IS LEAVING AS CHIEF SAID DAVID A DUKE A BOARD MEMBER 9312160192 931216 IOMEGA SEES OPERATING LOSS ROY UTAH IOMEGA CORP SAID THAT IT EXPECTS TO POST AN UNSPECIFIED FOURTHQUARTER OPERATING LOSS BECAUSE REVENUE AND PROFIT MARGINS HAVE BEEN LESS THAN ANTICIPATED AND COSTS HAVE BEEN HIGHER FACING FIERCE COMPETITION THE MAKER OF DISK DRIVES SAID IT EXPECTS SIGNIFICANT WRITEOFFS IN ADDITION TO THE LOSS FOR THE PERIOD ENDING DEC 31 IN THE FOURTH QUARTER A YEAR AGO IT EARNED 41000 ON REVENUE OF 375 MILLION 9312160191 931216 CANADIAN BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SAID IT SOLD AT AN AUCTION YESTERDAY 23 BILLION CANADIAN DOLLARS US172 BILLION OF 575 BONDS DUE MARCH 1 1999 AT AN AVERAGE YIELD OF 5935 THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9312160190 931216 QVC OBJECTS TO AUCTION OF PARAMOUNT URGES A SALE THROUGH OPEN BIDDING BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK QVC NETWORK INC EXPRESSING ITS MISTRUST OF THE AUCTION PROCESS PROPOSED BY PARAMOUNT COMMUNICATIONS INC URGED THE ENTERTAINMENT AND PUBLISHING COMPANY TO DITCH THE PLAN AND INSTEAD SELL ITSELF THROUGH OPEN PUBLIC BIDDING BUT PARAMOUNT WHICH ON TUESDAY ANNOUNCED PLANS FOR THE AUCTION UNDER PRESSURE FROM THE DELAWARE COURTS QUICKLY INDICATED THAT CHANGES IN THE PLANS ARE UNLIKELY CALLING ITS AUCTION THE BEST MEANS TO PROVIDE THE BEST VALUE FOR PARAMOUNT SHAREHOLDERS PARAMOUNT'S DECISION TO AUCTION ITSELF OFF WHICH FOLLOWED A LONG BOARD MEETING ON MONDAY EFFECTIVELY SCUTTLED THE PLANNED ACQUISITION OF PARAMOUNT BY CABLETELEVISION COMPANY VIACOM INC WHOSE BID YESTERDAY TOTALED 94 BILLION OR 7868 A SHARE PARAMOUNT'S MOVE ALSO OPENED THE DOOR FOR THE FIRST TIME TO QVC WHOSE BID TOTALED 99 BILLION OR 8247 A SHARE AS WELL AS ANY OTHER RIVAL BIDDERS BUT QVC'S ATTORNEYS AT WACHTELL LIPTON ROSEN & KATZ SAID IN A FOURPAGE LETTER TO PARAMOUNT'S INVESTMENT ADVISERS AT LAZARD FRERES & CO THAT QVC HAS SERIOUS PROBLEMS AND OBJECTIONS WITH THE PROCEDURES WHICH IT MAINTAINS LEAVE TOO MUCH UNFETTERED POWER IN THE HANDS OF PARAMOUNT DIRECTORS THE DELAWARE COURTS HAVE RULED THAT THE PARAMOUNT BOARD IMPROPERLY FAVORED VIACOM WHILE FAILING TO CONSIDER QVC'S OFFER SOME LARGE SHAREHOLDERS HOWEVER SAID THAT PARAMOUNT'S AUCTION PLAN IS FAIR SO LONG AS THE PARAMOUNT BOARD DOESN'T IN BAD FAITH CHANGE THE PROCEDURES THE PROPOSED PROCESS SEEMS TO BE A WELLCONSIDERED WAY TO GET THE HIGHEST POSSIBLE PRICE FOR THE COMPANY SAID MARK DICKSTEIN PRESIDENT OF DICKSTEIN PARTNERS AN INVESTMENT FIRM THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM AN INFLUENTIAL SHAREHOLDERS' RIGHTS ADVOCATE ENDORSED PARAMOUNT'S APPROACH AFTER CONSULTING WITH THE COMPANY'S CHAIRMAN MARTIN S DAVIS AFTER HIS TALK WITH MR DAVIS CALPERS'S CHIEF EXECUTIVE OFFICER DALE HANSON SAID IN AN INTERVIEW IT'S A PROCESS THAT WE'RE VERY COMFORTABLE WITH WHILE QVC AND PARAMOUNT SNIPED OVER AUCTION PROCEDURES VIACOM REMAINED SILENT SETTING OFF SPECULATION AMONG TRADERS AND TREPIDATION IN THE QVC CAMP THAT VIACOM CHAIRMAN SUMNER REDSTONE MAY BE PREPARING A MAJOR MOVE VIACOM HAS MADE NO PUBLIC COMMENT ON THE PARAMOUNT BOARD ACTION AND HAS TAKEN NO ACTION ITSELF OTHER THAN TO EXTEND ITS TENDER OFFER WHICH WAS TO EXPIRE TUESDAY NIGHT ONE VIACOM INSIDER SAID THE COMPANY DOES NOT WANT TO SIGNAL ITS PLANS UNTIL IT MAKES ITS NEXT MOVE UNDER ITS AUCTION PROCEDURES PARAMOUNT ASKED THAT EACH BIDDER SUBMIT ITS FINAL BEST OFFER BY 4 PM MONDAY PARAMOUNT WOULD DROP ITS POISONPILL ANTITAKEOVER DEFENSE FOR BOTH BIDDERS PERMITTING SHAREHOLDERS TO CHOOSE WHICH OFFER TO ACCEPT THE COMPANY ALSO SOUGHT TO NEUTRALIZE THE COERCIVE NATURE OF THE BIDDERS' TWOSTEP CASHANDSTOCK OFFERS BY REQUIRING THE WINNING BIDDER TO LEAVE ITS OFFER OPEN FOR 10 DAYS AFTER GAINING ENOUGH STOCK TO COMPLETE THE BID THUS SHARES TENDERED TO THE LOSING BIDDER CAN BE WITHDRAWN AND TRANSFERRED TO THE WINNER IN THEIR LETTER HOWEVER QVC'S LAWYERS COMPLAINED THAT PARAMOUNT'S DIRECTORS HAVE RESERVED THE POWER TO EXTEND THE SUBMISSION DATE AND TO NEGOTIATE THE BID OF ONE BIDDER WITH THE OTHER IN ADDITION QVC'S LAWYERS SAID PARAMOUNT RETAINED THE RIGHT TO CHANGE THE PROCEDURES AT ANY TIME WITHOUT PRIOR NOTICE THOSE POWERS QVC CLAIMED WOULD BE USED TO ITS DISADVANTAGE FOR EXAMPLE IF QVC HAS THE HIGH OFFER ON MONDAY PARAMOUNT COULD DECIDE TO NEGOTIATE THE QVC BID WITH VIACOM EXTEND THE SUBMISSION DATE AND ELICIT A HIGHER VIACOM BID THE LAWYERS WROTE IF VIACOM SUBMITS THE HIGH BID THE BOARD COULD ANNOUNCE THAT ITS PROCEDURES CALLED FOR A SINGLE ROUND OF BIDS AND CLOSE THE DOOR TO A SUBSEQUENT HIGHER BID BY QVC THE BOARD'S BIAS IN FAVOR OF VIACOM DURING THE TAKEOVER BATTLE DOES NOTHING TO INSPIRE QVC'S CONFIDENCE THAT THE BOARD WILL BE OBJECTIVE IN EXERCISING THE UNBRIDLED DISCRETION THAT IT HAS RESERVED TO ITSELF WROTE HERBERT WATCHELL QVC'S LEAD ATTORNEY ALLUDING TO PARAMOUNT EXECUTIVES AND DIRECTORS HE COMPLAINED THAT THOSE WHO ORCHESTRATED THE PAST VIOLATIONS ARE GOING TO CONTINUE TO BE INTIMATELY INVOLVED IN THE CURRENT PROCESS SEPARATELY PEOPLE CLOSE TO NYNEX CORP SAY THE REGIONAL TELEPHONE COMPANY HAS ASKED VIACOM'S MR REDSTONE FOR INFORMATION REGARDING PURCHASES OF VIACOM STOCK IN LATE SEPTEMBER AND EARLY OCTOBER BY WMS INDUSTRIES INC A COMPANY IN WHICH MR REDSTONE OWNS ABOUT A 25 STAKE AROUND THE SAME TIME AS THESE STOCK PURCHASES NYNEX AGREED TO MAKE A 12 BILLION INVESTMENT IN VIACOM TO BACK ITS BID FOR PARAMOUNT WMS HAS DENIED ANY INTENT TO PROP UP VIACOM STOCK WITH THE PURCHASES AND MR REDSTONE HAS DENIED ANY KNOWLEDGE OF THE BUYING BY WMS THE REQUEST FOR INFORMATION ABOUT THE STOCK BUYING WHICH BEGAN SHORTLY AFTER HOMESHOPPING GIANT QVC MADE A COMPETING OFFER TO ACQUIRE PARAMOUNT CAME DIRECTLY FROM NYNEX CHAIRMAN WILLIAM FERGUSON AND NYNEX VICE CHAIRMAN FREDERIC SALERNO THE PEOPLE CLOSE TO THE COMPANY SAID IT WASN'T CLEAR HOW MR REDSTONE RESPONDED TO THE REQUEST NYNEX DECLINED TO COMMENT THE WMS PURCHASES WHICH AMOUNTED TO ABOUT 20 OF THE VOLUME IN VIACOM CLASS B SHARES WERE MADE AT A TIME WHEN VIACOM'S BID CONSISTED PRINCIPALLY OF VIACOM B SHARES FOR THAT REASON THE BUYING COULD HAVE BOLSTERED THE VALUE OF THE BID ON THE AMERICAN STOCK EXCHANGE YESTERDAY VIACOM B SHARES FINISHED UNCHANGED AT 4350 MEANWHILE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PARAMOUNT STOCK DROPPED 125 CENTS TO 81 A SHARE QVC SHARES FELL 1 TO 41 ON THE NASDAQ STOCK MARKET RANDALL SMITH CONTRIBUTED TO THIS ARTICLE 9312160189 931216 INTERNATIONAL KOREA TO AWARD CELLULAR CONTRACT TO A SINGLE GROUP BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA THE GOVERNMENT'S DECISION TO AWARD A CONTRACT FOR KOREA'S FIRST PRIVATE CELLULAR PHONE SYSTEM TO A SINGLE CONSORTIUM HAS SET IT ON A COLLISION COURSE WITH US TRADE OFFICIALS THE MINISTRY OF COMMUNICATION ON TUESDAY SAID IT WOULD ASK AN ASSOCIATION OF BUSINESS LEADERS TO ASSEMBLE A CONSORTIUM OF LOCAL AND FOREIGN COMPANIES TO BUILD AND OPERATE THE NETWORK A YEAR AFTER AN EARLIER BID COLLAPSED AFTER CHARGES OF NEPOTISM MANY COMPANIES THAT HAD BEEN COUNTING ON AN OPENBID SYSTEM ARE NOW SCRAMBLING TO GET INTO THE CONSORTIUM KOREA'S MOBILE TELECOMMUNICATIONS MARKET ESTIMATED TO GROW INTO PERHAPS A 6 BILLION A YEAR BUSINESS BY 2000 IS EXPECTED TO BE ONE OF THE COUNTRY'S MOST LUCRATIVE BUSINESSES THE NUMBER OF SUBSCRIBERS IS EXPECTED TO GROW TO FOUR MILLION WITHIN THE NEXT SIX YEARS UP FROM THE 400000 CURRENTLY SERVED BY KOREA MOBILE TELECOM CO THE COUNTRY'S STATERUN MOBILEPHONE MONOPOLY BY SHIFTING RESPONSIBILITY FOR THE TENDER TO THE BUSINESS SECTOR THE GOVERNMENT IS MAKING GOOD ON PRESIDENT KIM YOUNG SAM'S PLEDGE TO DISSOLVE THE DUBIOUS LINK BETWEEN BUSINESS AND POLITICS YET THE MOVE IS EXPECTED TO IRK US TRADE OFFICIALS WHO HAVE ALREADY PUT KOREA ON NOTICE TO OPEN ITS TELECOMMUNICATIONS MARKET WIDER UNDER THE NEW TENDER THE AMOUNT OF FOREIGN EQUITY IN THE CONSORTIUM IS LIMITED TO 20 DOWN FROM 33 IN THE FIRST BID US DIPLOMATS WHOSE MEETING WEDNESDAY WITH THE COMMUNICATIONS MINISTRY WAS ABRUPTLY CANCELED ALSO SAY THEY ARE UNCOMFORTABLE WITH BUSINESS LEADERS CHOOSING THE CONSORTIUM MEMBERS GIVEN THE RELATIVE LACK OF INDIGENOUS TELECOMMUNICATIONS EXPERTISE IT SEEMS AS IF THEY'RE DOING SOME BACKROOM JOCKEYING AND POSITIONING BETWEEN THE CONGLOMERATES SAYS A US DIPLOMAT FOREIGN COMPANIES HAVE SPENT MILLIONS OF DOLLARS PREPARING PROPOSALS FOR THE FIRST TENDER AND HAVE BEEN WAITING FOR ANOTHER CRACK IN AN OPEN BID THE REDUCED SLOT FOR FOREIGN EQUITY WHICH MAY BE DIVIDED BETWEEN TWO OR THREE OVERSEAS COMPANIES HAS LEFT SOME WONDERING WHETHER IT WAS WORTH THE WAIT THE FOREIGN PARTNERS WILL HAVE TO WEIGH HEAVILY WHETHER A SMALLER AMOUNT IS WORTH THEIR TIME AND EFFORT SAYS DOYLE STOUT PRESIDENT OF NYNEX KOREA A DIVISION OF NYNEX CORP OF THE US 9312160188 931216 INTERNATIONAL JAPANESE BANKS' CREDIT RATINGS CUT BY MOODY'S BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO MOODY'S INVESTORS SERVICE INC DOWNGRADED THE CREDIT RATINGS OF TWO OF JAPAN'S LARGEST BANKS IN WHAT ANALYSTS SAY IS THE ONGOING CREDIT DETERIORATION OF THE NATION'S BANKING GIANTS MOODY'S LOWERED ITS RATINGS OF DAIICHI KANGYO BANK LTD'S SENIOR DEBT TO SINGLEA1 FROM DOUBLEA3 WHILE LOWERING THE DEBT RATING OF SAKURA BANK LTD TO SINGLEA2 FROM SINGLEA1 IN BOTH CASES MOODY'S CITED POOR ASSET QUALITY AND WEAK CORE PROFITABILITY AS WELL AS THE EXPECTATION THAT THE BANKS WILL BE BURDENED BY HIGH CREDIT EXPENSE FOR THE NEXT SEVERAL YEARS DAIICHI KANGYO OR DKB IS THE WORLD'S NO 2 BANK WITH UNCONSOLIDATED ASSETS OF 533 TRILLION YEN 486 BILLION AS OF SEPTEMBER SAKURA HAD UNCONSOLIDATED ASSETS OF 53 TRILLION YEN JAPANESE BANKS ARE SUFFERING FROM BAD LOANS PRIVATELY ESTIMATED AT ABOUT 30 TRILLION YEN MOSTLY TO SHAKY REAL ESTATE PROJECTS AND COMPANIES AFFECTED BY JAPAN'S ECONOMIC DOWNTURN MOODY'S AND OTHER RATING AGENCIES WORRY THAT THE BANKS' DETERIORATING ASSET BASE WILL HAMMER THE BANKS WELL INTO THE FUTURE WE DON'T EXPECT ANY ADDITIONAL DOWNGRADES FOR DKB AND SAKURA FOR NOW SAID SHINJI OKABE ASSISTANT VICE PRESIDENT AT MOODY'S JAPAN KK FOR OTHER BANKS THEIR RATINGS ARE UNDER PRESSURE FINANCIAL ANALYSTS IN JAPAN SAID THE DOWNGRADES WON'T SERIOUSLY AFFECT THE BANKS' OPERATIONS A SAKURA SPOKESMAN SAID WE DON'T SEE ANY SIGNIFICANT EFFECT IN TERMS OF CUSTOMER SERVICE OR LIQUIDITY BECAUSE OF THE RATING CHANGE WE WILL BE WORKING FURTHER TO ENHANCE OUR ASSET QUALITY AND OUR PROFITABILITY DKB HAD NO COMMENT ON THE DOWNGRADE MORE OMINOUS ANALYSTS SAID WERE THE IMPLICATIONS OF FUTURE DOWNGRADES I SINCERELY DOUBT IT WILL BE THE LAST DOWNGRADE OF A MAJOR JAPANESE BANK SAID WALTER ALTHERR BANK ANALYST AT MERRILL LYNCH JAPAN INC THE TREND CAN'T CONTINUE WITHOUT SEEING AN IMPACT ON THEIR OPERATIONS 9312160187 931216 INTERNATIONAL MERCEDESBENZ SETS FIRING FREEZE WINS CONCESSIONS BY JOHN SCHMID SPECIAL TO THE WALL STREET JOURNAL STUTTGART GERMANY MERCEDESBENZ AG BECAME THE LATEST GERMAN CAR MAKER TO AGREE TO A FIRING FREEZE IN RETURN FOR UNION FLEXIBILITY AS A RESULT THE COMPANY SAID IT WILL PRODUCE ITS PLANNED SUBCOMPACT CAR IN AN EXISTING MERCEDES FACTORY IN GERMANY AFTER DAYS OF ACRIMONIOUS TALKS MERCEDES AGREED NOT TO LAY OFF ANY OF THE 291000 WORKERS AT ITS GERMANBASED PLANTS UNTIL JUNE 30 1995 MERCEDES STILL WILL SHED JOBS THROUGH LIBERAL USE OF EARLYRETIREMENT AND VOLUNTARYSEVERANCE PACKAGES MERCEDES CHAIRMAN HELMUT WERNER STRESSED TO DATE MERCEDES AND PARENTCOMPANY DAIMLERBENZ AG HAVE SPEARHEADED THEIR COSTCUTTING PROGRAM BY SLASHING JOBS AT A RATE THAT HAS ALARMED THE NATION THE ENTIRE DAIMLER GROUP INCLUDING ITS ELECTRONICS AND AEROSPACE DIVISIONS WILL CUT 51000 WORKERS BY THE END OF 1994 THE CARROT THAT MERCEDES DANGLED AT ITS WORKERS TO MAKE THEM ACCEPT THE CONCESSIONS WAS THE AGREEMENT TO PRODUCE ITS PLANNED NEW SUBCOMPACT MINIMERCEDES AT THE PLANT IN RASTATT MERCEDES HAD THREATENED TO SHIFT PRODUCTION OF ITS SOCALLED CITY CAR TO FRANCE THE UNITED KINGDOM OR THE CZECH REPUBLIC IF THE UNIONS DIDN'T ACCEPT COST CONCESSIONS THE PACKAGE CUTS 200 MILLION MARKS 1166 MILLION EACH YEAR IN COSTS AT RASTATT ALONE JUST ENOUGH TO JUSTIFY BUILDING THE CAR IN GERMANY MR WERNER SAID AMONG THE CONCESSIONS THE EMPLOYEES' COUNCIL THAT REPRESENTS WORKERS AGREED TO LOWER BONUS PAY A STANDARD SATURDAY SHIFT AT RASTATT AND THE ELIMINATION OF AN HOURLY FIVEMINUTE BREAK IF THE CAR MARKET WEAKENS FURTHER MERCEDES RESERVED THE RIGHT TO REOPEN TALKS TO LAY OFF WORKERS MERCEDES OFFICIALS REJECTED A COMPARISON WITH VOLKSWAGEN AG WHICH AGREED TO A TWOYEAR FIRING FREEZE IN RETURN FOR A FOURDAY WORK WEEK AT VW'S GERMAN PLANTS AND A CUT IN PAY A MERCEDES SPOKESMAN ARGUED THAT MERCEDES' PLAN ALLOWS IT TO CONTINUE ATTACKING COSTS WHILE VW'S PROGRAM ONLY POSTPONES A MEANINGFUL SOLUTION TO ITS HIGH STRUCTURAL COSTS UNTIL AFTER THE FIRING FREEZE EXPIRES MEANWHILE DAIMLER ALSO DISCLOSED THAT ITS BIGGEST SHAREHOLDER DEUTSCHE BANK AG WILL CUT ITS STAKE IN DAIMLER TO LESS THAN 25 FROM 281 THE BANK'S DAIMLER SHARES ARE EARMARKED FOR US INVESTORS IN A MOVE TO HELP DAIMLER BROADEN ITS LIMITED SHAREHOLDER BASE DAIMLER WON A LISTING ON THE NEW YORK STOCK EXCHANGE IN OCTOBER BUT TURNOVER TO DATE HAS BEEN LOW IT CONCEDES BUT CUTTING ITS STAKE TO EXACTLY 249 THE BANK GIVES UP ITS BLOCKING MINORITY OR VETO RIGHT ON THE COMPANY'S SUPERVISORY BOARD SAID GERHARD LIENER DAIMLER'S CHIEF FINANCIAL OFFICER DEUTSCHE BANK WANTS TO DEMONSTRATE THAT IT DOESN'T CONTROL US HE SAID 9312160186 931216 WHO'S NEWS CINCINNATI BELL INC CINCINNATI BELL INC CINCINNATI RUDOLPH J FRANK 50 YEARS OLD FORMERLY PRESIDENT OF THE CBIS INTERNATIONAL GROUP SUBSIDIARY OF THIS COMMUNICATIONS HOLDING COMPANY WAS NAMED SENIOR VICE PRESIDENT AND CHIEF INFORMATION OFFICER OF THE CINCINNATI BELL TELEPHONE CO UNIT ALSO BARBARA J STONEBRAKER 49 SENIOR VICE PRESIDENT EXTERNAL AFFAIRS ASSUMES THE ADDITIONAL RESPONSIBILITIES OF CORPORATE ACCOUNTING AND ACCOUNTING OPERATIONS AT THE UNIT MR FRANK AND MS STONEBRAKER BOTH TAKE OVER FOR JEFFERY VORHOLT WHO RECENTLY RESIGNED 9312160184 931216 COMMERCIALBANK PROFITS SOARED TO RECORD IN PERIOD WASHINGTON COMMERCIALBANK PROFITS SOARED TO A RECORD 1145 BILLION IN THE THIRD QUARTER AS LENDING CONTINUED TO RISE AND BAD LOANS DECLINED THE FEDERAL DEPOSIT INSURANCE CORP REPORTED THE STRONG THIRD QUARTER LIFTED PROFITS OF THE NATION'S 11081 COMMERCIAL BANKS TO 326 BILLION FOR THE FIRST NINE MONTHS OF THE YEAR THAT ALREADY EXCEEDS THE RECORD 321 BILLION IN EARNINGS FOR ALL OF 1992 THE AGENCY SAID THE 1145 BILLION EARNED IN THE THIRD QUARTER COMPARES WITH 85 BILLION A YEAR EARLIER THE PREVIOUS QUARTERLY RECORD WAS 108 BILLION POSTED FOR THE FIRST THREE MONTHS OF THIS YEAR THE INDUSTRY'S RETURN ON ASSETS A KEY YARDSTICK OF PROFITABILITY ROSE TO 127 TOPPING THE PREVIOUS RECORD OF 123 IN THE FIRST QUARTER THE AGENCY CITED AN INCREASE IN NONINTEREST INCOME AND A DECLINE IN LOANLOSS RESERVES AS THE PRIMARY ENGINES OF HIGHER PROFITS TOTAL LOANS AND LEASES ROSE 3 FROM A YEAR EARLIER TO 21 TRILLION GROWTH IN CONSUMER AND RESIDENTIAL MORTGAGE LOANS PROPELLED THE INCREASE LOANS TO BUSINESSES CONTINUED TO DECLINE IN AN EXPANDED REPORT ON THE NATION'S 2297 SAVINGS BANKS AND SAVINGS AND LOAN INSTITUTIONS THE FDIC SAID THEY EARNED 12 BILLION IN THE THIRD QUARTER DOWN FROM 15 BILLION A YEAR EARLIER 9312160183 931216 BOEING RECEIVES ORDERS FOR 777S OF 145 BILLION BY RHONDA L RUNDLE AND MIRIAM JORDAN STAFF REPORTERS OF THE WALL STREET JOURNAL BOEING CO SAID IT RECEIVED ORDERS VALUED AT MORE THAN 145 BILLION FOR 11 ADVANCED TWINENGINE 777 AIRCRAFT FROM KOREAN AIR LINES AND THE BRAZILIAN CARRIER TRANSBRASIL BOEING ASSIGNED A 11 BILLION ESTIMATED VALUE TO KOREAN AIR LINES' EIGHTPLANE FIRM ORDER INCLUDING SPARE PARTS AND TRAINING KOREAN AIR LINES TOOK OPTIONS ON AN ADDITIONAL EIGHT PLANES BOEING DIDN'T SPECIFY A VALUE FOR THE THREEPLANE TRANSBRASIL ORDER THE INDICATED FIGURE WAS BETWEEN 345 MILLION AND 429 MILLION BASED ON A LIST PRICE FOR THE 777 MODEL OF BETWEEN 115 MILLION AND 143 MILLION INVESTORS WERE CHEERED BY THE NEWS PUSHING THE SEATTLE AIRCRAFTMAKER'S SHARES UP 43 OR 175 TO 42875 IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING TRANSBRASIL A LONGTIME BUYER OF NEW BOEING MODELS IS THE FIRST LATIN AMERICAN AIRLINE TO ORDER THE 777 BOEING SAID THE SEATTLEBASED AIRCRAFT MAKER NOW HAS 16 CUSTOMERS 147 FIRM ORDERS AND 108 OPTIONS FOR THE NEW PLANE THE BOEING 777 IS BIG ENOUGH TO CARRY 350 PASSENGERS BUT IS DESIGNED TO BE ESPECIALLY ECONOMICAL BECAUSE IT HAS ONLY TWO ENGINES THE FIRST DELIVERY IS SET FOR MAY 1995 TO UAL CORP'S UNITED AIRLINES THE BOEING 777 WILL ALLOW US TO STRONGLY COMPETE IN THE INTERNATIONAL MARKET SAID TRANSBRASIL PRESIDENT OMAR FONTANA THE JETS WILL SERVE ROUTES FROM VARIOUS POINTS IN BRAZIL TO MIAMI WASHINGTON AND NEW YORK CITY TRANSBRASIL WILL RECEIVE TWO 777S IN 1996 WITH THE THIRD SET FOR DELIVERY IN 1997 A KOREAN AIR LINES SPOKESMAN IN SEOUL SAID DELIVERY OF THE 777 AIRCRAFT IS TO BEGIN IN 1997 THE AGREEMENT WAS SIGNED TODAY IN SEOUL BY OUR PRESIDENT YH CHO AND BOEING HE SAID THE AIRCRAFT ARE TO BE USED FOR ROUTES BETWEEN SEOUL AND THE US NEITHER TRANSBRASIL NOR KOREAN AIR LINES HAS SELECTED ENGINES FOR THE JETS THE 777 ORDERS ARE A WELCOME BOOST FOR BOEING AFTER A RECENT DISAPPOINTMENT WHEN EUROPE'S AIRBUS INDUSTRIE WON AN 801 MILLION ORDER FOR A COMPETING JET MODEL THE A340 FROM HONG KONG'S CATHAY PACIFIC AIRWAYS BOEING HAD FOUGHT HARD TO DISCOURAGE CATHAY FROM TURNING TO AIRBUS WORKERS AT BOEING'S FACTORY IN EVERETT WASH ARE COMPLETING BODY ASSEMBLY OF THE FIRST PRODUCTION MODEL OF THE WIDEBODIED JET LAST MONTH BOEING STRUGGLING WITH A DEARTH OF MAJOR AIRPLANE ORDERS UNVEILED PLANS FOR MORE PRODUCTION CUTS AND FURTHER JOB REDUCTIONS 9312160182 931216 POLITICS & POLICY HOW POLL WAS CONDUCTED THE WALL STREET JOURNAL/NBC NEWS POLL WAS BASED ON NATIONWIDE TELEPHONE INTERVIEWS OF 1002 ADULTS CONDUCTED SATURDAY THROUGH TUESDAY BY THE POLLING ORGANIZATIONS OF PETER HART AND ROBERT TEETER THE SAMPLE WAS DRAWN FROM 263 RANDOMLY SELECTED GEOGRAPHIC POINTS IN THE CONTINENTAL US EACH REGION WAS REPRESENTED IN PROPORTION TO ITS POPULATION HOUSEHOLDS WERE SELECTED BY A METHOD THAT GAVE ALL TELEPHONE NUMBERS LISTED AND UNLISTED AN EQUAL CHANCE OF BEING INCLUDED ONE ADULT 18 YEARS OR OLDER WAS SELECTED FROM EACH HOUSEHOLD BY A PROCEDURE TO PROVIDE THE CORRECT NUMBER OF MALE AND FEMALE RESPONDENTS THE RESULTS OF THE SURVEY WERE MINIMALLY WEIGHTED BY AGE AND INCOME TO ASSURE THAT THE POLL ACCURATELY REFLECTS REGISTERED VOTERS NATIONWIDE CHANCES ARE 19 OF 20 THAT IF ALL ADULTS WITH TELEPHONES IN THE US HAD BEEN SURVEYED THE FINDINGS WOULD DIFFER FROM THESE POLL RESULTS BY NO MORE THAN 32 PERCENTAGE POINTS IN EITHER DIRECTION A LIMITED NUMBER OF QUESTIONS WERE ASKED OF HALF THE SAMPLE FOR THESE THE MARGIN OF ERROR WAS 45 PERCENTAGE POINTS THE MARGIN FOR ANY SUBGROUP WOULD DEPEND ON THE SIZE OF THAT GROUP SEE RELATED ARTICLE CLINTON IN INTERVIEW SHRUGS OFF RUSSIAN VOTE FOR ULTRANATIONALISTS AND FRETS OVER AMA POLICY WSJ DEC 16 1993 9312160181 931216 INTERNATIONAL HOSOKAWA GETS 6WEEK REPRIEVE IN EFFORT TO PASS POLITICAL REFORMS BY JACOB M SCHLESINGER AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO AFTER FOUR MONTHS IN OFFICE PRIME MINISTER MORIHIRO HOSOKAWA IS BRUISED BUT STANDING FIRM JAPAN'S LEADER ADMITTED HE WILL FAIL TO ACHIEVE WHAT HE INITIALLY DECLARED HIS TOP PRIORITY PASSAGE OF SWEEPING POLITICAL REFORM THIS YEAR HOWEVER YESTERDAY HE WON A KEY VICTORY THE RIGHT TO KEEP FIGHTING FOR ANOTHER SIX WEEKS POLITICIANS AND ANALYSTS REMAIN DIVIDED OVER WHETHER MR HOSOKAWA CAN WIN REFORMS BY JAN 29 THE NEW END OF THE SPECIAL SESSION OF PARLIAMENT IF HE FAILS NEXT MONTH HE MAY HAVE TO DISSOLVE PARLIAMENT AND CALL NEW ELECTIONS JUST TWO WEEKS BEFORE A PLANNED SUMMIT WITH PRESIDENT CLINTON TO SET A NEW FRAMEWORK FOR FRAYED USJAPAN ECONOMIC RELATIONS MANY SUPPORTERS AND OPPONENTS SAY THE DELICATE SEVENPARTY RULING COALITION HAS HELD TOGETHER FAIRLY WELL SO FAR EVEN AFTER PUSHING CONTROVERSIAL ELECTORAL REFORMS THROUGH ONE HOUSE OF PARLIAMENT AND ENDING JAPAN'S ONCESACRED HALFCENTURY BAN ON RICE IMPORTS DESPITE LOUD OPPOSITION FROM WITHIN THE COALITION NOT ONE MEMBER HAS DEFECTED SINCE MR HOSOKAWA ANNOUNCED THE RICE CONCESSION EARLIER THIS WEEK FURTHERMORE THE PREMIER'S PUBLICSUPPORT RATE WHILE SLIPPING REMAINS BETWEEN 60 AND 70 IN MOST POLLS HIS POWER BASE HAS SOLIDIFIED INSISTED TADASHI HIRONO A PARLIAMENTARY MEMBER OF MR HOSOKAWA'S COALITION BY OPENING THE RICE MARKET HE HAS PULLED OFF ONE OF HIS TOUGHEST CHALLENGES STILL MR HOSOKAWA FACES MANY MORE DIFFICULT FIGHTS OVER THE NEXT MONTH AND A HALF AS THE INCREASINGLY ASSERTIVE OPPOSITION LIBERAL DEMOCRATIC PARTY DOES ITS BEST TO WEAR HIM DOWN MEANWHILE JAPAN'S RECESSION FORCES MR HOSOKAWA TO USE VALUABLE POLITICAL CAPITAL ON NEW EMERGENCY MEASURES TO BOOST THE ECONOMY THIS KIND OF POLITICAL REFORM COMES MAYBE ONCE EVERY 100 YEARS THIS IS AN UNPRECEDENTED RECESSION AND THEN CAME RICE SAID NORIAKI WATASE AN LDP MEMBER OF PARLIAMENT THERE ARE TOO MANY BIG ISSUES PILED UP FOR MR HOSOKAWA TO SUCCEED HE ADDED NONETHELESS WASHINGTON HAS HIGH HOPES FOR MR HOSOKAWA WHO IS VIEWED AS AN ALLY IN ATTACKING JAPAN'S CLOSED MARKETS WHEN THE TWO COUNTRIES ORIGINALLY SET THE FEBRUARY CLINTONHOSOKAWA SUMMIT THEY HOPED MR HOSOKAWA WOULD HAVE PUT POLITICAL REFORM BEHIND HIM GIVING HIM TIME TO FOCUS ON USJAPAN RELATIONS BUT NOW HIS ATTENTION SPAN IS LIMITED TO DOMESTIC POLITICAL FIGHTS ONE WESTERN DIPLOMAT SAID ISSUES OF CONCERN TO OTHER COUNTRIES MAY NOT POP UP ON HIS RADAR SCREEN INDEED DESPITE MR HOSOKAWA'S HEADY TALK OF DEREGULATION AND CONSUMERISM IT'S BECOMING APPARENT THAT HIS ABILITY TO PURSUE CHANGES THAT THE US DESIRES IS LIMITED AS HE BALANCES COMPETING NEEDS WITHIN HIS COALITION AND WITH POWERFUL BUREAUCRATS TODAY MR HOSOKAWA'S BLUERIBBON ECONOMIC REFORM PANEL IS SUPPOSED TO RELEASE ITS FINAL REPORT ON DEREGULATION CRITICS EXPECT A MUCH WEAKER SET OF PROPOSALS THAN MR HOSOKAWA PROMISED IN AUGUST BECAUSE OF BUREAUCRATIC INTERFERENCE MR HOSOKAWA'S SUCCESS IN THE NEAR TERM WILL DEPEND HEAVILY ON HIS ABILITY TO MAINTAIN HIS POPULAR SUPPORT HE CONTINUES TO WIN POINTS FOR POLITICAL STYLE A NEW ART IN JAPAN HE RECENTLY FOR EXAMPLE WON AN AWARD AS ONE OF JAPAN'S BESTDRESSED MEN IN 1993 AND HE DREW ATTENTION AT A NEWS CONFERENCE FOR SHUNNING A WRITTEN TEXT AND USING AMERICANSTYLE TELEPROMPTERS BUT MR HOSOKAWA HAS TAKEN HITS FOR APPEARING INDECISIVE IN ATTACKING THE RECESSION AND THE LDP IS TRYING TO TAR HIM WITH THE BRUSH OF SCANDAL GRILLING THE PRIME MINISTER AT EVERY OPPORTUNITY ABOUT A LOAN HE TOOK FROM A TRUCKING COMPANY WITH ALLEGED GANGSTER TIES ONE OF THE BIGGEST QUESTIONS HANGING OVER MR HOSOKAWA IS THE STABILITY OF THE SOCIALIST PARTY THE LARGEST BLOC IN HIS COALITION MANY SOCIALISTS RELUCTANT TO JOIN THE GOVERNMENT FROM THE START ARE BELIEVED TO OPPOSE MUCH OF MR HOSOKAWA'S AGENDA INCLUDING POLITICAL REFORM OBSERVERS THINK HOWEVER THAT THE PARTY WILL BE LOATHE TO PUT ITS PRINCIPLES AHEAD OF THE POWER IT NOW HAS FOR THE FIRST TIME IN FOUR DECADES THEY HAVE FIVE CABINET MINISTERS AND THEY ENJOY THEIR SWEET COMFORTABLE POSTS SAID TAKAO TOSHIKAWA EDITOR OF A POLITICAL NEWSLETTER 9312160180 931216 MCI PLANS TO TAKE UP TO 150 MILLION CHARGE BEFORE TAX BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MCI COMMUNICATIONS CORP FACING AN ESCALATING MARKETING WAR WITH AMERICAN TELEPHONE & TELEGRAPH CO WILL TAKE A PRETAX CHARGE OF AS MUCH AS 150 MILLION TO CONSOLIDATE SOME OPERATIONS MCI SAID THE CHARGE WHICH COULD REDUCE FOURTHQUARTER EARNINGS BY AS MUCH AS 45 BASED ON ANALYSTS' ESTIMATES STEMS FROM A RECENT REORGANIZATION INTO NEW MARKET GROUPS AND THE MERGING OF A DATA UNIT WITH ONE OWNED BY ITS NEW 20OWNER BRITISH TELECOMMUNICATIONS PLC AN MCI SPOKESMAN SAID THE CONSOLIDATION OF NETWORK FACILITIES WOULD INVOLVE SOME LAYOFFS OF MOSTLY ENGINEERS ALTHOUGH THE EXACT NUMBER HADN'T BEEN DETERMINED THE SCRAPPY LONGDISTANCE CARRIER MUST TRIM COSTS TO GET BATTLEREADY FOR AT&T WHICH HAS VOWED TO TURN UP THE HEAT IN NEW CONSUMER SERVICES AND CUTRATE PRICING MCI'S MAIN MARKETING WEAPON THE BEST DEFENSE IS TO ALWAYS BE LEAN AND MEAN DOUGLAS MAIN MCI'S CHIEF FINANCIAL OFFICER SAID IN AN INTERVIEW WHILE INDUSTRY RATES ARE ON THE RISE OVERALL AT&T IS TRIMMING SOME PRICES TO WIN BACK CONVERTS TO MCI'S FRIENDS & FAMILY SERVICE WHICH NOW HAS ABOUT 12 MILLION CUSTOMERS AIMING AT YOUNG CUSTOMERS AN MCI STRONGHOLD AT&T IS RUNNING HIPHOPSTYLE TELEVISION ADS SAYING ITS 1800OPERATOR SERVICE IS THE CHEAPEST ANYWHERE A SHOT AT MCI'S RIVAL SERVICE 1800COLLECT MCI IS THROWING MORE AND MORE DOLLARS AT SELLING AND MARKETING EXPENSES SAID BLAKE BATH A FORMER MCI MARKETING STRATEGIST WHO IS AN ANALYST AT SANFORD BERNSTEIN & CO THIS CHARGE GIVES THEM MORE CASH TO INVEST IN MARKETING AND IMPROVING PRODUCT DEVELOPMENT HE ESTIMATED THE CHARGE WOULD TRIM MCI EARNINGS BY AS MUCH AS 90 MILLION AFTER TAXES OR ABOUT 15 CENTS A SHARE IT WOULD BE THE BIGGEST CHARGE SINCE THE THIRD QUARTER OF 1990 WHEN THE WASHINGTONBASED COMPANY TOOK A 550 MILLION PRETAX CHARGE FOR RESTRUCTURING RESULTING IN A 176 MILLION LOSS ANALYSTS HAD EXPECTED MCI TO EARN ABOUT 200 MILLION OR 34 CENTS A SHARE IN THE CURRENT QUARTER IN THE YEAREARLIER PERIOD MCI'S FOURTHQUARTER NET INCOME WAS 160 MILLION OR 60 CENTS A SHARE ON REVENUE OF 276 BILLION MCI STOCK ROSE 50 CENTS OR 2 TO CLOSE AT 2575 A SHARE IN NASDAQ STOCK MARKET TRADING YESTERDAY 9312160179 931216 BOSTON UNIVERSITY STATE SETTLE PROBE INTO CONFLICTS BOSTON BOSTON UNIVERSITY AGREED TO ADOPT TERM LIMITS FOR TRUSTEES AND CHANGE THE WAY ITS PRESIDENT JOHN SILBER IS PAID IN RESPONSE TO A STATE INVESTIGATION INTO CONFLICTS OF INTEREST THE ACTION TUESDAY FOLLOWED NINE MONTHS OF NEGOTIATIONS BETWEEN THE UNIVERSITY AND THE STATE ATTORNEY GENERAL AMONG OTHER THINGS THE UNIVERSITY AGREED NOT TO DO BUSINESS WITH ANYONE RELATED TO A TRUSTEE OR EXECUTIVE OFFICER UNLESS THE TRANSACTION WAS APPROVED BY THE ENTIRE BOARD MASSACHUSETTS ATTORNEY GENERAL SCOTT HARSHBARGER SAID THE AGREEMENT AVERTED A LAWSUIT AGAINST THE SCHOOL TRUSTEES MAINTAINED THEY'D DONE NOTHING WRONG THE UNIVERSITY HAS 66 TRUSTEES 10 OF THEM HONORARY SOME WERE ALLEGED TO HAVE HAD BUSINESS DEALINGS WITH THE UNIVERSITY THE INVESTIGATION BEGAN WHEN DR SILBER WHO ALSO WAS THE 1990 DEMOCRATIC CANDIDATE FOR GOVERNOR EARNED 386700 FROM THE SALE OF UNIVERSITYCONTROLLED SERADYN INC A MEDICAL DIAGNOSTIC COMPANY DR SILBER DENIED THE ALLEGATION BUT THE ATTORNEY GENERAL ULTIMATELY CONFIRMED IT AND FOUND CREDIBLE EVIDENCE THAT THE UNIVERSITY DELIBERATELY FILED A FALSE FINANCIAL REPORT WITH THE PUBLIC CHARITIES DIVISION AT THE SAME TIME DR SILBER WAS CLEARED OF WRONGDOING AND SAID HE HAD RETURNED THE MONEY TO THE UNIVERSITY 9312160178 931216 TECHNOLOGICAL WIZARDRY IS A MUST FOR THOSE WHO WORK AT HOME BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL THESE DAYS BEA YOUNG TAPS HER CLIENT PRESENTATIONS INTO AN IBM CLONE COMPUTER WAKES UP TO FAXES FROM SOUTH AFRICA AND FIELDS HER OWN PHONE CALLS ON TWO BUSINESS LINES SHE PLANS TO SUBSCRIBE TO AN ONLINE SERVICE SO SHE CAN START SENDING ELECTRONIC MAIL TO HER CLIENTS AND FRIENDS SHE MIGHT GET A BEEPER TOO TWO MONTHS AGO THE 60YEAROLD GLENCOE ILL DIVERSITY CONSULTANT COULDN'T USE A COMPUTER EXCEPT TO RETRIEVE ELECTRONIC MAIL IN HER THREE DECADES WORKING IN OFFICES SHE HAD WRITTEN EVERYTHING BY HAND AND DUMPED IT ON AN ASSISTANT'S DESK I'VE COME A LONG WAY IN A SHORT TIME SHE SAYS A LOT OF PEOPLE WHO LEAVE THE OFFICE TO SET UP SHOP AT HOME HAVE NO IDEA WHERE TO START HAVING AVOIDED THE MACHINES AT THE OFFICE THEY ARE CLUELESS ABOUT WHAT TO BUY HOW TO HOOK IT UP AND HOW MUCH TO SPEND THEN THEY MUST CHOOSE AMONG A GLUT OF SOFTWARE WITH THE RIGHT SETUP THEY CAN GET THEIR COMPUTERS TO BALANCE THEIR CHECKBOOKS DO THEIR INCOME TAXES CUSTOMIZE MAILING LISTS AND REMIND THEM WHEN IT'S TIME TO MAKE AN IMPORTANT PHONE CALL WITH ONLINE SUBSCRIBER SERVICES SUCH AS COMPUSERVE THEY CAN GET UPTOTHE MINUTE RESEARCH AND SWAP IDEAS WITH PEOPLE ALL OVER THE WORLD ON ANYTHING FROM WEIGHT LOSS TO MEGAMERGERS THE TROUBLE IS GETTING STARTED DENIS DETZEL A FORMER PARTNER WITH CONSULTING FIRM HAY GROUP DIDN'T KNOW HOW TO USE A FAX WHEN HE RESIGNED IN AUGUST TO FORM HIS OWN CONSULTANCY AND WRITE A BOOK BEFORE HE LEFT TWO ASSISTANTS PULLED HIM ASIDE AND FORCED HIM THROUGH THE MOTIONS HE PUSHED THE BUTTONS THEY POINTED TO HE SAYS BUT ONLY TO GET THEM OFF MY BACK NOW WORKING FROM HIS THIRDFLOOR CONDO ON LAKE MICHIGAN IN CHICAGO HE HAS LEARNED BY READING THE MANUAL CHOOSING EQUIPMENT WAS AN EXERCISE IN CONFUSION HERE'S SOMEONE WHO KNOWS NOTHING ABOUT IT DECIDING BETWEEN A THOUSAND MODELS SAYS MR DETZEL 48 YEARS OLD WHO IS STILL FOND OF HIS ROYAL TYPEWRITER FROM THE 1940S HE WENT TO THREE COMPUTER STORES BUT GOT FRUSTRATED WHEN SALESPEOPLE TRIED TO FOIST EQUIPMENT ON HIM WITHOUT ASKING WHAT HE NEEDED THEN HE CALLED A CONSULTANT WHO SUGGESTED A 7000 PACKAGE HE DECLINED SEVEN GRAND FOR A PIG IN THE POKE WHEN YOU HAVEN'T GOT THE FOGGIEST IDEA WHAT IT IS HE FINALLY BOUGHT A CHEAPER SET OF EQUIPMENT RECOMMENDED BY TWO COMPUTERWHIZ FRIENDS NOW HE LAYS OUT HIS OWN CHARTS ON HIS COMPUTER COMPLETE WITH GRAPHICS DIFFERENT SIZES OF LETTERING AND DIFFERENT FONTS ONE PRESENTATION FOR AN INSURANCE COMPANY SHOWS A LIST OF GOALS WITH CHECK MARKS NEXT TO ALL OF THEM DID YOU CATCH THE CHECK MARKS HE ASKS AND ADDS I GOT THE JOB HE STUMBLES THROUGH OTHER PROGRAMS AN ELECTRONIC ADDRESS FINDER WHICH WILL AUTOMATICALLY DIAL ANY NUMBER HE SELECTS ON SCREEN MAY HAVE LOST 45 NAMES AND ADDRESSES HE SPENT HOURS KEYING IN HE CAN'T FIND THEM I'M SURE THEY'RE IN THERE SOMEWHERE HE SHRUGS DISASTERS LIKE THESE CAN CRIPPLE A HOME OFFICE SINCE MOST PEOPLE WHO WORK AT HOME DON'T KNOW HOW TO COPE WITH EVEN SIMPLE TECHNICAL GLITCHES SHARON POWELL A PUBLICRELATIONS CONSULTANT FOR NONPROFIT WOMEN'S HEALTH GROUPS IN CHICAGO COULDN'T PRINT OUT A MAILING LIST FOR A CLIENT NOT LONG AGO BECAUSE HER COMPUTER LOST POWER WITH THE CLIENT'S MESSENGER EN ROUTE TO PICK UP THE LIST MS POWELL PANICKED SHE CALLED HER LANDLORD WHO DISPATCHED A MAINTENANCE MAN SHE CALLED HER CLIENT WHO AGREED TO EXTEND THE DEADLINE UNTIL LATER THAT DAY THEN SHE CALLED A FRIEND THE FRIEND QUICKLY DIAGNOSED THE PROBLEM AS A BLOWN FUSE AND GAVE HER AN EXTENSION CORD SO SHE COULD PLUG THE COMPUTER INTO ANOTHER OUTLET I'M THE QUEEN OF EXTENSION CORDS MS POWELL SAYS SHOWING HOW THE CORD SNAKES AROUND HER DININGROOM TABLE INTO THE KITCHEN MS YOUNG THE DIVERSITY CONSULTANT WAS HORRIFIED RECENTLY WHEN HER FAX MACHINE RAN OUT OF PAPER CUTTING OFF THE END OF A DOCUMENT THAT SHE AND A COWORKER IN FLORIDA WERE TRYING TO POLISH FOR PRESENTATION I DIDN'T EVEN KNOW HOW TO OPEN THE LID SHE SAYS SHE HAD TO CALL HER HUSBAND WHO WAS ON VACATION IN NAPLES FLA TO WALK HER THROUGH THE PROCESS FOR THOSE WHO GET THE HANG OF IT A COMPUTER CAN OPEN UP WHOLE NEW WAYS TO WORK AS 55YEAROLD CHICAGO PUBLICRELATIONS CONSULTANT ELAINE SOLOWAY FOUND FROM A CONVERTED BEDROOM OF HER HOUSE IN CHICAGO'S LINCOLN PARK NEIGHBORHOOD SHE USES HER MODEM TO TALK TO PROFESSORS DOCTORS AND OTHER COMPUTER USERS ALL OVER THE WORLD SOMETIMES FOR CLIENTS SOMETIMES NOT HER GOLDEN RETRIEVER SASHA HOVERS NEAR HER SURGE PROTECTOR SOMETIMES THE DOG LIES DOWN ON IT MAKING MS SOLOWAY'S COMPUTER SCREEN FLICKER SO FAR SHE HAS USED THE ELECTRONIC BULLETIN BOARDS TO GET ADVICE ON HOW TO USE HER COMPUTER TO ADVERTISE HER CLIENTS' EVENT AND TO SOLICIT NAMES OF SPEAKERS THERE ARE PERSONAL BENEFITS TOO THIS SUMMER WHILE CHATTING ONLINE WITH A WEIGHTLOSS GROUP MS SOLOWAY TOOK A RECOMMENDATION TO READ A DIET BOOK LOST 10 POUNDS AND CONVERTED TO VEGETARIANISM OTHER ONLINE GROUPS HELPED HER CHOOSE AND PRICE PARTS TO REPAIR HER GARBAGE DISPOSAL AND RULE OUT APPENDICITIS AS THE CAUSE OF HER SONINLAW'S PAIN SHE ALSO SAVES TIME BY SHOPPING FOR HER GROCERIES VIA MODEM SHE CHECKS OFF WHAT SHE WANTS ON AN ELECTRONIC FORM AND THEN SENDS THE ORDER ELECTRONICALLY TO THE SUPERMARKET WHICH DELIVERS THE GOODS TO HER DOORSTEP YOU CAN SEE HOW YOU CAN GET ADDICTED TO THIS STUFF SHE SAYS 9312160177 931216 WORLD TRADE TALKS SUCCESS OF TALKS EASES PRESSURE IN THE EC BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS THE SUCCESSFUL CONCLUSION OF WORLDTRADE NEGOTIATIONS REMOVES A MILLSTONE FROM AROUND THE NECK OF EUROPEAN UNITY THE GATT TALKS OPENED UP MAJOR INTERNAL DIVISIONS WITHIN THE 12NATION EUROPEAN COMMUNITY AND PARTICULARLY BETWEEN FRANCE AND GERMANY ITS TWO LEADING MEMBERS AT A TIME WHEN THE EC IS TRYING TO ESTABLISH ITSELF AS A MORE COHESIVE WORLD POWER IN A SIGN OF HOW PERILOUS THE SITUATION HAD BECOME AN AIDE TO FRENCH PRESIDENT FRANCOIS MITTERRAND WARNED JUST 10 DAYS AGO THAT GATT COULD PROVE DEVASTATING TO THE EC IF AN AGREEMENT ACCEPTABLE TO ALL WASN'T REACHED BUT AFTER MONTHS OF TORTUOUS INTERNAL DIPLOMACY THE EC DID FINALLY MANAGE TO OVERCOME ITS DIVISIONS SUFFICIENTLY TO REACH A LASTMINUTE AGREEMENT WITH THE US ENABLING THE URUGUAY ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE TO BE CONCLUDED ON TIME ANY LINGERING DOUBTS THAT FRANCE MIGHT NOT BACK A FINAL DEAL WERE DISPELLED BY THE NATIONAL ASSEMBLY IN PARIS WHICH VOTED YESTERDAY IN FAVOR OF THE GATT ACCORD THE MANNER IN WHICH EUROPEAN COHESION NARROWLY PASSED ONE OF ITS TOUGHEST TESTS PROVIDES AN INSIGHT INTO THE COMPLEX WEB OF RELATIONSHIPS AND ALLIANCES THAT EXIST WITHIN THE COMMUNITY IT ALSO SUGGESTS THAT DESPITE THE SEVERE PUBLIC MISGIVINGS OVER EUROPEAN UNITY THAT HAVE ARISEN WITH PASSAGE OF THE EC'S MAASTRICHT TREATY THE NOTION OF EUROPEAN SOLIDARITY HAS ASSUMED THE STATUS OF A STRATEGIC GOAL IN THE NATIONAL POLICIES OF THE EC'S 12 MEMBERS WHEN EUROPE IS UNITED IT CAN DEFEND ITS INTERESTS SAID VALERY GISCARD D'ESTAING THE FORMER FRENCH PRESIDENT EUROPEAN SOLIDARITY HAS UNDOUBTEDLY ENABLED FRANCE TO SCORE SOME IMPORTANT POINTS IN THIS NEGOTIATION GATT PROVED SO TROUBLESOME BECAUSE IT PITTED THE ECONOMIC LIBERALISM OF GERMANY BRITAIN AND OTHER NORTH EUROPEAN NATIONS ANXIOUS TO CONCLUDE AN ACCORD AGAINST THE VEILED PROTECTIONISM OF FRANCE AND SOME OF ITS SOUTHERN NEIGHBORS WHO TEND TO PUT NATIONAL INTERESTS ON A PAR IF NOT ABOVE THE PRINCIPLE OF FREE TRADE THE TENSIONS WERE ESPECIALLY FRAUGHT BECAUSE THE USUALLY GOOD TIES BETWEEN PARIS AND BONN HAVE BEEN STRAINED IN RECENT MONTHS BY DIFFERENCES OVER HOW TO REACT TO THE CONTINUING YUGOSLAV CRISIS AND BY GERMANY'S TIGHT MONETARY POLICY WHICH FRANCE THINKS HAS HURT ITS ECONOMY THE COLLAPSE OF EUROPE'S EXCHANGERATE MECHANISM IN EARLY AUGUST WHICH BROKE THE CLOSE LINK BETWEEN THE GERMAN MARK AND THE FRENCH FRANC MARKED AN ACRIMONIOUS LOW POINT AT TIMES DURING THE GATT TALKS IT SEEMED AS IF GERMANY MIGHT BE LEFT FACING THE IMPOSSIBLE CHOICE BETWEEN FREE TRADE AND FRANCE IF PUSH HAD COME TO SHOVE IT'S REALLY NOT CLEAR WHICH WAY THINGS WOULD HAVE GONE SAYS ONE BRITISH OFFICIAL TO EVERYONE'S RELIEF HOWEVER THE EC MANAGED TO AVOID FORCING THE ISSUE OFFICIALS WHO FOLLOWED AND PARTICIPATED IN THE INTERNAL WRANGLING SAY THAT A TURNING POINT CAME IN SEPTEMBER WHEN FRANCE AND GERMANY STARTED WORKING SERIOUSLY TO OVERCOME THEIR DIFFERENCES AND FORGE COMMON POSITIONS WHEREVER POSSIBLE BY THE END THEY HAD ENGAGED IN A COMPLEX TRADEOFF GERMANY HELPED FRANCE WIN EC SUPPORT FOR ITS TWO MAIN DEMANDS A BETTER DEAL FOR ITS FARMERS AND SPECIAL TREATMENT FOR CULTURE AND IN RETURN MANAGED TO NUDGE PARIS TOWARD ACCEPTING AN AGREEMENT OTHER NATIONS ALSO PLAYED IMPORTANT ROLES BELGIUM WHICH HOLDS THE ROTATING EC PRESIDENCY MANAGED TO BROKER DIFFICULT COMPROMISES AT CRUCIAL MOMENTS OFFICIALS SAY INDEED GERMANY'S CHANCELLOR HELMUT KOHL LAVISHED PRAISE ON BELGIUM AFTER AN EC SUMMIT THIS PAST WEEKEND SAYING HE THOUGHT IT WAS PERHAPS THE BEST PRESIDENCY HE HAD ENCOUNTERED IN ALL HIS YEARS AS GERMAN LEADER BRITAIN WHICH HAS LONG PLAYED THE ROLE OF EC MAVERICK ALSO CONTRIBUTED TO THE COHESION BY REFRAINING FROM OVERT CRITICISM OF FRANCE TELLING ITS PARTNERS THAT IT UNDERSTOOD PARIS HAD A SERIOUS DOMESTIC PROBLEM EVEN THE US WAS A PLAYER IN THE DRAMA PERHAPS UNWITTINGLY FRANCE LONG SUSPECTED THAT WASHINGTON WANTED TO DIVIDE THE EC BY PLAYING ON GERMAN HOPES FOR AN ACCORD THAT WOULD BOOST ITS EXPORTORIENTED INDUSTRY ITS FEARS REACHED A PEAK WHEN PRESIDENT CLINTON CALLED MR KOHL THIS MONTH APPARENTLY SEEKING HIS SERVICES AS AN INTERMEDIARY FRENCH SOURCES SAY THAT SPARKED A FLURRY OF DIPLOMATIC ACTIVITY BY PARIS INCLUDING SEVERAL PHONE CALLS TO MR CLINTON BY EDOUARD BALLADUR THE FRENCH PREMIER AND HIGHLEVEL TALKS WITH BONN THE FIRST BREAKTHROUGH CAME IN A MAMMOTH SESSION OF EC MINISTERS SEPT 20 GERMANY REVERSING ITS POSITION AGREED AT THAT MEETING THAT THE SOCALLED BLAIR HOUSE ACCORD ON AGRICULTURE NEGOTIATED BY THE EC COMMISSION AND THE US LAST YEAR SHOULD BE CLARIFIED FRANCE HAD FOR MONTHS REJECTED THE ACCORD WHICH IT DEEMED UNACCEPTABLE BUT THE US WAS REFUSING TO REOPEN TALKS IN LENDING SUPPORT GERMANY STOPPED SHORT OF CALLING FOR A FULL RENEGOTIATION OF BLAIR HOUSE AS FRANCE WANTED AND BONN INSISTED THAT THE EC'S CHIEF NEGOTIATOR SIR LEON BRITTAN SHOULD BE GIVEN LEEWAY TO NEGOTIATE AS BEST HE COULD AND NOT BE GIVEN A FORMAL NEW MANDATE THAT WOULD TIE HIM DOWN PARIS REMAINED SKEPTICAL HOWEVER AND FRENCH OFFICIALS SAY THEY CONSTANTLY BADGERED SIR LEON IN THE FINAL STAGES OF THE TALKS THE OTHER KEY BREAKTHROUGH CAME THIS PAST WEEKEND AT THE EC SUMMIT MEETING IN BRUSSELS MR MITTERRAND AND MR KOHL MEETING OVER BREAKFAST SATURDAY AT THE FRENCH AMBASSADOR'S RESIDENCE AGREED ON A FORMULA THAT WOULD ENABLE FRENCH FARMERS TO RECEIVE COMPENSATION FROM THE EC IF THE GATT STIPULATIONS ON AGRICULTURE MADE THEM WORSE OFF AT THE SAME TIME GERMANY WON A FRENCH PLEDGE THAT ANY COMPENSATION WOULDN'T EXCEED THE EC'S PLANNED BUDGET OFFICIALS ADMIT THE COMPROMISE IS RATHER SPURIOUS IF THE GATT DEAL DOES INDEED INVOLVE BIGGER FARM CUTS THAN THE EC HAS ALREADY AGREED TO INTERNALLY THE COST OF COMPENSATION COULD BE ENORMOUS AND IT'S UNCLEAR WHERE THE MONEY WOULD COME FROM BUT THESE OFFICIALS SAY THE ISSUE ISN'T LIKELY TO SURFACE FOR AT LEAST TWO YEARS BY WHICH TIME OTHER ARRANGEMENTS COULD BE MADE WITH GATT OUT OF THE WAY EUROPEAN LEADERS NOW HOPE THE COMING MONTHS WILL BRING A MORE UPBEAT MOOD AT THEIR WEEKEND SUMMIT THEY ALREADY MOVED TO FORGE COMMON POSITIONS ON SUCH DIVERSE ISSUES AS RULES GOVERNING POLITICAL ASYLUM WAYS TO CREATE BADLY NEEDED JOBS AND A BIGGER EC ROLE IN MIDDLE EAST DIPLOMACY MOREOVER THE FRENCH FRANC HAS NOW RISEN BACK TO ITS LEVEL BEFORE THE AUGUST MELTDOWN OF THE EUROPEAN MONETARY SYSTEM BREATHING NEW LIFE INTO THE NOTION OF MONETARY COOPERATION 9312160176 931216 TREASURY SALES TO RAISE 54 BILLION NEW CASH WASHINGTON THE TREASURY PLANS TO RAISE A COMBINED 54 BILLION IN FRESH CASH NEXT WEEK WITH THE SALE OF 17 BILLION TWOYEAR NOTES NEXT TUESDAY AND 11 BILLION OF FIVEYEAR NOTES ON WEDNESDAY THE BALANCE OF THE PROCEEDS WILL BE USED TO REDEEM 226 BILLION IN MATURING PUBLICLY HELD SECURITIES THE NEW TWOYEAR NOTES WILL BE DATED DEC 31 AND MATURE DEC 31 1995 THE NEW FIVEYEAR NOTES WILL BE DATED DEC 31 AND MATURE DEC THE CUSIP NUMBER FOR THE TWOYEAR NOTES IS 912827N32 THE CUSIP NUMBER FOR THE FIVEYEAR NOTES IS 912827N40 NONCOMPETITIVE TENDERS FOR THE TWOYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 5000 MUST BE RECEIVED BY NOON EST NEXT TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EST NONCOMPETITIVE TENDERS FOR THE FIVEYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 1000 MUST BE RECEIVED BY NOON EST NEXT WEDNESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EST 9312160175 931216 BUSINESS BRIEF ZENITH ELECTRONICS CORP CHARGE OF UP TO 30 MILLION IS PLANNED FOR FOURTH PERIOD ZENITH ELECTRONICS CORP SAID IT IS TAKING A FOURTHQUARTER CHARGE OF AS MUCH AS 30 MILLION TO RESTRUCTURE CERTAIN PRODUCT AREAS AND TO IMPROVE PRODUCTIVITY IN ITS CORE CONSUMERELECTRONICS AND CABLE BUSINESS IN LAST YEAR'S FOURTH QUARTER ZENITH HAD A LOSS OF 203 MILLION OR 67 CENTS A SHARE INCLUDING A CHARGE OF 248 MILLION FOR RESTRUCTURING REVENUE WAS 385 MILLION THE GLENVIEW ILL MAKER OF CONSUMERELECTRONICS PRODUCTS SAID THE CHARGE WILL PRIMARILY COVER NONCASH FIXEDASSET AND INVENTORY WRITEDOWNS AS WELL AS SEVERANCE COSTS THE RESTRUCTURING WILL AFFECT COMPUTER MONITORS AND MAGNETICS PRODUCT AREAS IN WHICH ZENITH IS BRINGING ITS PRODUCTION CAPACITY MORE IN LINE WITH EXPECTED LEVELS OF BUSINESS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ZENITH SHARES CLOSED AT 7125 UNCHANGED 9312160174 931216 WHO'S NEWS WEST CO WEST CO LIONVILLE PA TENLEY E ALBRIGHT 58 YEARS OLD A SURGEON AT THE NEW ENGLAND BAPTIST HOSPITAL IN BOSTON WAS ELECTED A DIRECTOR OF THIS HEALTHCARE AND CONSUMER PRODUCTS COMPANY INCREASING THE BOARD TO 14 MEMBERS 9312160173 931216 WHO'S NEWS GREEN TREE FINANCIAL CORP GREEN TREE FINANCIAL CORP ST PAUL MINN ROBERT D POTTS 51YEAROLD EXECUTIVE VICE PRESIDENT ADMINISTRATION WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MOBILE HOME FINANCE CONCERN SUCCEEDING KENNETH S ROBERTS 64 WHO IS RETIRING 9312160172 931216 WHO'S NEWS FINANCE CHIEF WANDLER QUITS HOME SHOPPING IN ONGOING SHAKEUP ST PETERSBURG FLA CONTINUING A MANAGEMENT SHAKEUP THAT BEGAN LAST SPRING HOME SHOPPING NETWORK INC SAID ITS CHIEF FINANCIAL OFFICER RESIGNED AND WILL BE SUCCEEDED BY TWO SENIOR EXECUTIVES THE ELECTRONIC RETAILER SAID LES R WANDLER 48 YEARS OLD RESIGNED AS FINANCE CHIEF EFFECTIVE JAN 1 BUT WILL CONTINUE TO SERVE AS A CONSULTANT MR WANDLER WILL BE SUCCEEDED BY PETER M KERN 26 WHO WAS NAMED SENIOR VICE PRESIDENT OF STRATEGIC DEVELOPMENT AND CORPORATE FINANCE AND KEVIN J MCKEON 36 WHO WILL BECOME SENIOR VICE PRESIDENT OF ACCOUNTING AND FINANCE MR KERN MOST RECENTLY WAS VICE PRESIDENT OF STRATEGIC DEVELOPMENT AND ASSISTANT TO CHIEF EXECUTIVE OFFICER GERALD F HOGAN WHO BEGAN TO RESHAPE THE MANAGEMENT LAST SPRING AFTER HE WAS NAMED CHIEF EXECUTIVE TO LEAD THE COMPANY OUT OF A MORASS OF PROBLEMS MR MCKEON MOST RECENTLY WAS CONTROLLER HOME SHOPPING NAMED BRIAN J FELDMAN 34 MOST RECENTLY DEPUTY CONTROLLER TO SUCCEED MR MCKEON THE COMPANY ALSO NAMED NORY LEBRUN 48 EXECUTIVE VICE PRESIDENT FOR AFFILIATE SALES AND MARKETING TO SUCCEED ALAN H GERSON MR GERSON 47 ANNOUNCED HIS RESIGNATION LAST MONTH TO PURSUE OTHER CAREER INTERESTS EFFECTIVE JAN 1 MR LEBRUN MOST RECENTLY WAS SENIOR VICE PRESIDENT OF THE TV FOOD NETWORK 9312160171 931216 BUSINESS BRIEF SOCAL GAS OFFERS SETTLEMENT TO PRODUCERS IN CANADA TO RENEGOTIATE SUPPLY PACT LOS ANGELES IN A MOVE THAT COULD SAVE CALIFORNIA GAS USERS MORE THAN 1 BILLION OVER 17 YEARS SOUTHERN CALIFORNIA GAS CO OFFERED TO PAY A 192 MILLION SETTLEMENT TO CANADIAN GAS PRODUCERS FOR RENEGOTIATING A LONGTERM GAS SUPPLY CONTRACT A SOCAL GAS SPOKESMAN SAID THAT UNDER EXISTING TERMS OF THE CONTRACT WHICH DOESN'T EXPIRE UNTIL 2012 THE LOS ANGELES UTILITY MUST PAY PRICES TYPICAL OF THE HIGH GAS PRICES THAT PREVAILED IN THE LATE 1970S WHEN THE CONTRACT WAS SIGNED NATURAL GAS PRICES HAVE FALLEN SIGNIFICANTLY SINCE THEN SOCAL GAS THEREFORE WANTS TO RENEGOTIATE THE CONTRACT TO REFLECT THE CHANGE THE SPOKESMAN ADDED GAS SHIPPER PANALBERTA GAS LTD CALGARY ALBERTA SAID IT REACHED AN AGREEMENT IN PRINCIPLE WITH SOCAL GAS AND PACIFIC INTERSTATE TRANSMISSION CO TO REWRITE THE CONTRACT PANALBERTA OWNED BY NOVA CORP OF ALBERTA AND ALBERTA ENERGY CO BOTH OF CALGARY SAID ITS MANY GASSUPPLIERS MUST AGREE TO THE PLAN WHICH ALSO REQUIRES REGULATORY AND THIRDPARTY APPROVALS PANALBERTA SAID THAT IF THE SETTLEMENT IS APPROVED THE 192 MILLION PAYMENT WILL BE DISTRIBUTED TO THE GAS PRODUCERS AND THE CONTRACT WILL BE AMENDED TO ENSURE THAT THE DELIVERED PRICE OF THE GAS WILL BE COMPARABLE WITH THE PRICE OF OTHER GAS SUPPLIES PURCHASED BY SOCAL GAS SOCAL GAS AND PACIFIC INTERSTATE ARE BOTH 100OWNED BY PACIFIC ENTERPRISES LOS ANGELES THE SOCAL GAS SPOKESMAN SAID THAT ALTHOUGH PACIFIC INTERSTATE IS THE CONTRACT'S SIGNATORY SOCAL GAS PROPOSES TO MAKE THE PAYMENT HE SAID IT'S REASONABLE TO ASSUME THAT SOCAL GAS WOULD BUY ABOUT 200 MILLION CUBIC FEET A DAY OF GAS UNDER THE RENEGOTIATED CONTRACT AND WOULD PAY ABOUT 1 LESS FOR EACH 1000 CUBIC FEET OF GAS THAN IT WOULD HAVE PAID UNDER THE ORIGINAL CONTRACT BETWEEN 1994 AND 2012 THE UTILITY COULD THEREFORE EXPECT TO SAVE ABOUT 12 BILLION ON ITS CANADIAN GAS PURCHASES PANALBERTA VICE PRESIDENT MARVIN BRADSHAW SAID THAT EVEN THOUGH SOCAL GAS STANDS TO SAVE A SIGNIFICANT SUM ALBERTA GAS PRODUCERS WON'T LOSE MONEY HE SAID THE PLAN CALLS FOR THE 192 MILLION PAYMENT TO BE DISTRIBUTED TO THE PRODUCERS OVER SEVERAL YEARS AS A RESULT THEY WILL RECEIVE ROUGHLY THE SAME WELLHEAD PRICE FOR THEIR GAS AS THEY WOULD HAVE UNDER THE ORIGINAL CONTRACT 9312160170 931216 MARTECH USA PLANS CHAPTER 11 FILING AND DOUBLES ITS ESTIMATE OF YEAR'S LOSS BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL MARTECH USA INC SAID IT HAS NO ALTERNATIVE BUT TO FILE FOR CHAPTER 11 BANKRUPTCY PROTECTION AS IT DOUBLED ITS LOSS ESTIMATE FOR THE LAST FISCAL YEAR TO AS MUCH AS 33 MILLION THE ENVIRONMENTAL CLEANUP AND CONSTRUCTION COMPANY BASED IN ANCHORAGE ALASKA ALSO SAID ITS LENDERS HAVE DECLARED ITS CREDIT LINES IN DEFAULT AND HAVE THREATENED TO REFUSE TO DISBURSE CERTAIN OTHER MARTECH FUNDS UNTIL THE CREDITLINE DEFAULT HAS BEEN RESOLVED PARTLY AS A RESULT THE COMPANY IS EXPERIENCING EXTREME CASH FLOW PROBLEMS MARTECH DIDN'T SAY WHEN IT MIGHT FILE FOR CHAPTER 11 UNDER WHICH A COMPANY IS PROTECTED FROM CREDITOR CLAIMS WHILE IT TRIES TO WORK OUT A REORGANIZATION PLAN TWO WEEKS AGO MARTECH FORECAST A LOSS OF AT LEAST 15 MILLION FOR THE FISCAL YEAR ENDED AUG 30 ON NOV 11 MARTECH ISSUED A LETTER TO INVESTORS DECLARING THAT THE COMPANY WAS BIG AND STRONG AND VERY WELL ESTABLISHED AND HAD A BRIGHT FUTURE THE PROJECTED LOSS WHICH ECLIPSES MARTECH'S TOTAL COMBINED PROFITS FOR ITS ENTIRE HISTORY IS CERTAIN TO FUEL QUESTIONS ABOUT THE COMPANY'S ACCOUNTING PROCEDURES THE SECURITIES AND EXCHANGE COMMISSION IS PROBING MARTECH FOR POSSIBLE ACCOUNTING IRREGULARITIES MANY PAST AND PRESENT EMPLOYEES HAVE SAID IN COURT TESTIMONY OR IN RECENT INTERVIEWS THAT MARTECH HAS HAD A LONGSTANDING PRACTICE OF INFLATING PROFITS BY DELIBERATELY OVERSTATING REVENUES AND UNDERSTATING COSTS MARTECH HAS DENIED THOSE ALLEGATIONS THE COMPANY SAID YESTERDAY THAT THE FISCAL 1993 DEFICIT WILL INCLUDE LOSSES OF 21 MILLION TO 25 MILLION FROM INCREASED ESTIMATED TOTAL COSTS ON CERTAIN FIXEDRATE CONTRACTS OF THAT AMOUNT MARTECH SAID 11 MILLION TO 15 MILLION RELATES EITHER TO COSTS MARTECH INCURRED WITHOUT ITS CLIENTS' APPROVAL OR TO CLAIMS WITH RESPECT TO WHICH REVENUES WILL BE RECORDED ONLY WHEN THEY ARE ACTUALLY RECEIVED OR AWARDED UNDER SEC RULES MARTECH WAS SUPPOSED TO HAVE ISSUED ITS FISCAL YEAR RESULTS NO LATER THAN NOV 29 ON NOV 30 HOWEVER IT SAID IT HAD REQUESTED A 15DAY EXTENSION BECAUSE THE RESULTS WEREN'T FINALIZED YESTERDAY IT SAID THE RESULTS STILL AREN'T FINALIZED AND WON'T BE FOR AT LEAST SEVERAL DAYS MARTECH ALSO SAID ITS ACCOUNTANT KPMG PEAT MARWICK HAS ADVISED THE COMPANY THAT IT WILL PROBABLY REQUIRE MATERIAL ADJUSTMENTS TO PAST MARTECH FINANCIAL REPORTS THE COMPANY DISCLOSED THE NEWS IN A PRESS RELEASE AND DECLINED TO ELABORATE MANY PAST AND CURRENT MARTECH OFFICIALS BLAME BENJAMIN C TISDALE THE COMPANY'S CHAIRMAN CHIEF EXECUTIVE OFFICER AND BIGGEST SHAREHOLDER FOR THE COMPANY'S PROBLEMS MR TISDALE WHO OWNS 49 OF MARTECH'S SHARES COULDN'T BE REACHED TO COMMENT MARTECH HAS UNRAVELED SWIFTLY SINCE EARLY NOVEMBER WHEN NEWS OF THE COMPANY'S MYRIAD PROBLEMS SPILLED OUT IN ADDITION TO THE ACCOUNTING QUESTIONS THE COMPANY IS UNDER INVESTIGATION BY SEVERAL MILITARY AUTHORITIES AND FEDERAL PROSECUTORS FOR POSSIBLE CONTRACT FRAUD OR VIOLATION OF ENVIRONMENTAL LAWS IT HAS RECEIVED POOR PERFORMANCE EVALUATIONS ON NUMEROUS MILITARY JOBS JEOPARDIZING ITS ABILITY TO CONTINUE TO WIN SUCH WORK MOREVER IN THE PAST YEAR MARTECH HAS BEEN INVOLVED IN MORE THAN 100 LAWSUITS MOST OF THEM WERE FILED BY SUBCONTRACTORS OR SUPPLIERS THAT ALLEGED THAT MARTECH FAILED TO PAY THEM THE COMPANY HAS DENIED THOSE CHARGES MARTECH STOCK WHICH WAS TRADING AT 825 A SHARE IN EARLY NOVEMBER HAS SLUMPED YESTERDAY MARTECH SHARES CLOSED UNCHANGED AT 225 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING IN SEPTEMBER MARTECH ANNOUNCED THAT IT HAD HIRED FIRST BOSTON CORP TO SELL THE COMPANY OR TAKE OTHER STEPS TO BOOST ITS STOCK PRICE A FIRST BOSTON SPOKESMAN HAS CONFIRMED THAT THE FIRM RECENTLY SEVERED ITS TIES WITH MARTECH HE DECLINED TO SAY WHY MARTECH DECLINED TO SAY WHETHER IT IS STILL TRYING TO SELL OR RESTRUCTURE THE COMPANY 9312160169 931216 WHO'S NEWS AMERITECH'S NOTEBAERT WILL SUCCEED WEISS AS CHIEF EXECUTIVE CHICAGO REGIONAL BELL TELEPHONE COMPANY AMERITECH CORP SAID RICHARD C NOTEBAERT WAS NAMED CHIEF EXECUTIVE OFFICER EFFECTIVE JAN 1 HE SUCCEEDS WILLIAM L WEISS 64 YEARS OLD WHO WILL CONTINUE AS CHAIRMAN MR NOTEBAERT 46 WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER LAST JUNE PREVIOUSLY HE HAD BEEN VICE CHAIRMAN SEPARATELY THE COMPANY ANNOUNCED A 2FOR1 STOCK SPLIT AND A 44 INCREASE IN THE QUARTERLY DIVIDEND TO 96 CENTS OR 48 CENTS AFTER THE SPLIT THE COMPANY HAD BEEN PAYING 92 CENTS QUARTERLY THE DIVIDEND IS PAYABLE FEB 1 TO STOCK OF RECORD DEC 31 THE SPLIT SHARES WILL BE DISTRIBUTED JAN 24 TO STOCK OF RECORD DEC 31 MR WEISS SAID THE DIVIDEND REFLECTS OUR CONFIDENCE IN OUR ABILITY TO SUSTAIN THE GROWTH OF THIS BUSINESS AMERITECH SUPPLIES COMMUNICATIONS AND INFORMATION SERVICES TO 12 MILLION CUSTOMERS IN THE MIDWEST AND HAS INTERESTS IN NEW ZEALAND NORWAY POLAND AND OTHER INTERNATIONAL AREAS 9312160168 931216 UAL AND TWO BIGGEST UNIONS NEGOTIATE A SWEETENED OFFER FOR MAJORITY STAKE BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UAL CORP 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 UAL'S BOARD PLANS TO CONSIDER THE PROPOSAL TODAY THE COMPANY SAID THE PARENT OF UNITED AIRLINES WOULDN'T COMMENT ON THE PROPOSAL BUT ONE COMPANY NEGOTIATOR SAID THE OFFER AMOUNTED TO 173 A SHARE A UNION NEGOTIATOR CONFIRMED A VALUE OF MORE THAN 170 A SHARE THAT WOULD TOP THE UNIONS' PREVIOUS OFFER WHICH UAL VALUED AT 140 A SHARE AND REPRESENT A PREMIUM OVER UAL'S YEARLONG HIGH OF 15550 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY UAL COMMON CLOSED AT 148625 DOWN 25 CENTS FOR SEVEN MONTHS THE PARTIES HAVE BEEN DISCUSSING A TRANSACTION IN WHICH THE UNIONS WOULD ACQUIRE A MAJORITY STAKE IN UAL PAID FOR PRIMARILY WITH BILLIONS OF DOLLARS OF WAGE AND WORKRULE CONCESSIONS LAST MONTH UAL REJECTED AS INADEQUATE A UNION PROPOSAL FOR 60 OF UAL WHICH THE LABOR COALITION VALUED AT 55 BILLION OR 16567 A SHARE LABOR CONCESSIONS MADE UP ABOUT 35 BILLION OF THE PURCHASE PRICE THE TWO NEGOTIATORS FOR EACH SIDE SAID THE NEW PROPOSAL IS STRUCTURED SIMILARLY TO THE ORIGINAL ONE WHICH CONSISTED OF NEW COMMON STOCK THAT WOULD BE ISSUED AFTER THE COMPANY SET UP A LOWCOST CARRIER FOR SHORTHAUL ROUTES AND THE UNIONS AGREED TO BILLIONS OF DOLLARS IN CONCESSIONS IT ALSO CONTAINED ROUGHLY 66 A SHARE IN CASH DEBT AND PREFERRED STOCK ONE UNION NEGOTIATOR SAID THE VALUE OF THE CASH SENIOR NOTES AND PREFERRED STOCK IN THE NEW PROPOSAL IS 88 A SHARE THE PRECISE VALUE OF THE NEWLY ISSUED COMMON STOCK COULDN'T BE LEARNED BUT THAT PERSON SAID THE UNION GROUP COULD ACQUIRE BETWEEN 53 AND 63 OF UAL'S COMMON STOCK IN THE TRANSACTION DEPENDING UPON THE VALUE OF THE COMPANY'S SHARES ONE YEAR AFTER THE DEAL CLOSES ALTHOUGH THE BOARD WILL CONSIDER THE PROPOSAL TODAY INDIVIDUALS FAMILIAR WITH THE COMPANY'S PLANS SAID IT HAS SCHEDULED ANOTHER BOARD MEETING FOR MONDAY TO CONTINUE DELIBERATIONS WHILE IT'S NOT EXPECTED THE BOARD COULD VOTE FORMALLY ON THE OFFER AT TODAY'S SESSION AT COMPANY HEADQUARTERS OUTSIDE CHICAGO ANY DEAL WOULD BE UNUSUAL BECAUSE UNITED WHICH IS NECK AND NECK WITH AMR CORP'S AMERICAN AIRLINES AS THE NATION'S LARGEST CARRIER IS RELATIVELY HEALTHY COMPARED WITH OTHER MAJOR AIRLINES THAT HAVE EXCHANGED EQUITY STAKES FOR LABOR CONCESSIONS UAL IS PURSUING SUCH A TRANSACTION BECAUSE IT BELIEVES IT MUST SHARPLY LOWER ITS LABOR COSTS TO COMPETE AGAINST LOWCOST LOWFARE RIVALS IN SHORTHAUL ROUTES IN ADDITION TO BOARD APPROVAL ANY TRANSACTION WOULD STILL REQUIRE CONSENT FROM UAL'S SHAREHOLDERS AS WELL AS RATIFICATION FROM MEMBERS OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND FROM LEADERS OF THE PILOTS UNION IT WASN'T CLEAR WHAT ROLE THE COMPANY'S OTHER MAJOR UNION WHICH REPRESENTS FLIGHT ATTENDANTS WILL HAVE IN THE BUYOUT THE ASSOCIATION OF FLIGHT ATTENDANTS LEFT THE NEGOTIATIONS LAST SUMMER IN A DISPUTE OVER THE COMPANY'S OPENING A FOREIGN BASE FOR CABIN ATTENDANTS FELIX ROHATYN THE SENIOR PARTNER AT LAZARD FRERES & CO IS EXPECTED TO MAKE A PRESENTATION TODAY ON THE PROPOSAL TO UAL'S BOARD MR ROHATYN WAS HIRED BY UNITED LATE LAST MONTH AFTER THE FIRST ROUND OF UNION BUYOUT TALKS COLLAPSED UAL AND THE LABOR COALITION COULDN'T AGREE ON A TRANSACTION PRICE AT THAT TIME UNITED'S UNION LEADERS WERE SERIOUSLY QUESTIONING THE COMMITMENT OF UAL CHAIRMAN STEPHEN M WOLF TO A TRANSACTION MR ROHATYN SERVED ON PRESIDENT CLINTON'S NATIONAL AIRLINE COMMISSION EARLIER THIS YEAR ALONG WITH KEY LEADERS FROM UNITED'S PILOTS AND MACHINISTS GROUP UAL BROUGHT IN MR ROHATYN A TRUSTED FIGURE TO THE UNIONS IN HOPES OF GETTING THE NEGOTIATIONS BACK ON TRACK INTENT ON PUSHING THE DEAL THROUGH THIS WEEK MR WOLF AND UAL PRESIDENT JOHN C POPE ALONG WITH OTHER SENIOR UNITED OFFICERS HUDDLED YESTERDAY WITH COMPANY NEGOTIATORS IN NEW YORK TO HELP IRON OUT FINAL DETAILS THE MACHINISTS UNION STILL WARY OF MANAGEMENT'S COMMITMENT TO THE DEAL RECENTLY BEGAN SPREADING THE WORD AMONG ITS MEMBERS THAT IF AN AGREEMENT WASN'T REACHED THIS WEEK IT WOULD ORCHESTRATE A CAMPAIGN TO DISRUPT UNITED SERVICE DURING THE BUSY CHRISTMAS SEASON 9312160167 931216 MARKETING & MEDIA MARKETSCAN FOOD MARKETERS START TO EXAMINE BORDEN'S LINES IN BID FOR BARGAINS BY KATHLEEN DEVENY STAFF REPORTER OF THE WALL STREET JOURNAL SOME BIG FOOD MARKETERS ARE BROWSING THROUGH BORDEN INC'S BRAND PORTFOLIO IN SEARCH OF BARGAINS THAT MIGHT BE FOR SALE FOLLOWING LAST WEEK'S OUSTER OF ANTHONY S D'AMATO AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER WITH BORDEN'S NEW MANAGEMENT UNDER PRESSURE FROM ANGRY SHAREHOLDERS TO QUICKLY IMPROVE RESULTS MERGERS AND ACQUISITION SPECIALISTS AT SEVERAL MAJOR FOOD COMPANIES SAY THEY BELIEVE BORDEN IS LIKELY TO SELL AT LEAST A FEW OF ITS WELLKNOWN BRAND NAMES AND THOUGH MOST OBSERVERS SAY FORMAL NEGOTIATIONS HAVEN'T BEGUN FOOD INDUSTRY EXECUTIVES ALREADY ARE CIRCLING BORDEN AMONG THE PARTIES SAID TO BE SENDING OUT FEELERS RJR NABISCO HOLDINGS CORP AND UNILEVER GROUP EXECUTIVES AT NABISCO AND UNILEVER DECLINED TO COMMENT IF OUTSIDERS ARE RIGHT THE RESULTING DIVESTITURE PROGRAM MAY RESEMBLE NOTHING MORE THAN A YARD SALE STARTING IN THE MID1980S THE FOOD AND CONSUMERPRODUCTS CONCERN HAS ACQUIRED A HODGEPODGE OF REGIONAL AND NICHE BRANDS IN SUCH DIVERSE PRODUCT CATEGORIES AS CANNED SEAFOOD SOUP MIXES AND SALTY SNACKS AMONG ITS MANY LITTLEKNOWN BRANDS DOXSEE CHOWDERS AND CLAM PRODUCTS MRS GRASS SOUP MIXES AND MACDONALD'S MAPLE SYRUP SUPERMARKET SALES DATA GATHERED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE SHOW THAT MANY OF THE COMPANY'S BESTKNOWN BRANDS ARE HARDLY FLYING OFF RETAILERS' SHELVES SALES OF THE ORIGINAL BORDEN CHEESE PRODUCTS DECLINED 14 DURING THE 52 WEEKS ENDED NOV 7 FROM A YEAR EARLIER WHILE SALES OF THE WISE BRAND OF POTATO CHIPS AND SNACKS DROPPED 15 DURING THE SAME PERIOD SALES OF REALEMON LEMON JUICE AND EAGLE BRAND CONDENSED MILK DROPPED MORE PRECIPITOUSLY DECLINING 39 AND 77 RESPECTIVELY EVEN BORDEN'S PASTA BUSINESS ONCE THE BRIGHT SPOT IN ITS LACKLUSTER PORTFOLIO HAS FALTERED LATELY IN LESS THAN A YEAR BORDEN'S ASSORTMENT OF DRY PASTAS WHICH INCLUDE THE CREAMETTE AND PRINCE BRANDS HAS SUSTAINED MARKET SHARE LOSSES SO SEVERE THAT BY ONE MEASURE THE COMPANY HAS LOST ITS RANK AS THE NO 1 PASTASELLER IN THE US A TITLE BORDEN HAD HELD SINCE THE MID1980S DURING THE RECENT 52WEEK PERIOD SALES OF ITS CREAMETTE BRAND DROPPED 13 AND SALES OF THE PRINCE BRAND DECLINED 5 TO BE SURE THERE ARE A FEW BRIGHT SPOTS IN THE COMPANY'S CONSUMERPRODUCT LINEUP DUE LARGELY TO A BUTTER TOFFEE FLAVOR LAUNCHED LAST YEAR SUPERMARKET SALES OF BORDEN'S CRACKER JACK CANDIED POPCORN PRODUCTS GREW 311 DURING THE 52 WEEKS ACCORDING TO INFORMATION RESOURCES THE COMPANY'S UPSCALE CLASSICO LINE OF PASTA SAUCE HAS ALSO FARED WELL WITH SALES UP 102 CERTAINLY THESE ARE DIFFICULT TIMES FOR ALL US FOOD MARKETERS MOUNTING COMPETITION FROM PRIVATELABEL PRODUCTS AND CONSUMERS' INCREASING FOCUS ON VALUE HAVE MADE IT DIFFICULT FOR MARKETERS OF NATIONAL BRANDS TO RAISE PRICES BUT SOME MARKETING EXPERTS SAY MANY OF BORDEN'S TROUBLES ARE OF ITS OWN MAKING THE COMPANY'S VAST COLLECTION OF TINY BRANDS IN DISPARATE CATEGORIES MAKES ANY COHESIVE MARKETING PROGRAM DIFFICULT AND EXPENSIVE BORDEN MAINTAINS THAT IT WILL SOON UNVEIL ANOTHER RESTRUCTURING PLAN ITS FOURTH SINCE 1989 IN OCTOBER THE COMPANY ANNOUNCED THAT DIVESTITURES WOULD BE FORTHCOMING AND SAID THAT FOURTHQUARTER EARNINGS WERE LIKELY TO INCLUDE A CHARGE TO COVER THE DISPOSAL OF SOME BUSINESSES AND FORMER AND CURRENT EXECUTIVES AT BORDEN SAY MR D'AMATO PRESENTED A PLAN TO THE BOARD ON NOV 30 THAT SUGGESTED SELLING OFF THE COMPANY'S SNACK FOOD BUSINESS AND SEVERAL OF ITS NICHE GROCERY BRANDS BORDEN DECLINED TO COMMENT ON WHICH BRANDS IT MIGHT SELL BUT PRIVATELY EXECUTIVES AT BORDEN SAY THE COMPANY'S BASIC STRATEGY HASN'T SUBSTANTIALLY CHANGED DESPITE THE MANAGEMENT TURMOIL BORDEN IS UNLIKELY TO SELL ITS PRIZED CRACKER JACK BUSINESS THEY SAY OR UNLOAD ITS CLASSICO PASTA SAUCES THE RECORD SHOWS THAT WE KNOW HOW TO MANAGE THESE BUSINESSES SO WHY WOULD WE SELL SAYS ONE BORDEN EXECUTIVE ANOTHER EXECUTIVE ADDS THAT THE COMPANY IS MORE LIKELY TO SELL SMALLER REGIONAL BRANDS THAT ARE ALSO HEALTHY SUCH AS ITS JAMS AND JELLIES BUSINESS OR ITS NONE SUCH BRAND OF MINCEMEATPIE FILLING BUT MR D'AMATO'S SUDDEN RESIGNATION MAY SIGNAL THAT THE COMPANY'S BOARD WANTS A MORE RADICAL APPROACH TO RESTRUCTURING AND ASSET SALES ACCORDING TO JOHN MCMILLIN AN ANALYST WITH PRUDENTIAL SECURITIES INC MR MCMILLIN SAYS HE BELIEVES THAT INDEPENDENT BOARD MEMBERS ARE SEEKING TO LIQUIDATE THE COMPANY BUT BELIEVES BORDEN'S NEW CHIEF EXECUTIVE ERVIN R SHAMES WILL FAVOR SOME ASSET SALES RATHER THAN A TOTAL LIQUIDATION MR MCMILLIN BELIEVES THE COMPANY WILL SELL SNACK FOODS SOME GROCERY BRANDS AND PERHAPS ITS SPECIALTY CHEMICAL AND INDUSTRIAL OPERATIONS ALTHOUGH FINDING BUYERS FOR MANY OF THE SMALLER BRANDS WILL BE DIFFICULT NOMI GHEZ AN ANALYST AT GOLDMAN SACHS & CO SAYS MANY OF BORDEN'S BETTERKNOWN PROPERTIES WOULD BE ATTRACTIVE TO OTHER FOOD COMPANIES I THINK THE COMPANY WILL BE FORCED TO SELL SOME GOOD PROFITABLE BUSINESSES BECAUSE THEY NEED TO RAISE CASH SHE SAYS THERE IS SO MUCH OUTSIDE PRESSURE THAT THEY WON'T BE ABLE TO JUST COME OUT AND SELL ONE OR TWO LITTLE BUSINESSES EXECUTIVES FAMILIAR WITH RJR NABISCO SAY THE BIG FOOD COMPANY WOULD DEFINITELY BE INTERESTED IN BORDEN'S CRACKER JACK AT THE RIGHT PRICE WITH BRANDS LIKE PLANTERS PEANUTS AND LIFE SAVERS NABISCO IS STRONG IN SNACKS AND CANDY WHICH HAVE SIMILAR DISTRIBUTION SYSTEMS IT'S A PERFECT COMPLEMENT SAYS AN EXECUTIVE CLOSE TO THE COMPANY WHILE FEELERS HAVE GONE OUT FOR BORDEN'S PASTA BUSINESS FOOD INDUSTRY EXECUTIVES SAY THAT THE COMPANY IS LIKELY TO KEEP ITS BIGGEST BRANDS OUR PRESUMPTION IS THAT PASTA IS ONE OF BORDEN'S MOST PROFITABLE GROUPS SAYS AN EXECUTIVE AT ANOTHER FOOD COMPANY IT'S AN INDUSTRY ASSUMPTION THAT PASTA ISN'T A GROUP THAT THEY ARE GOING TO BE SHOPPING SUEIN L HWANG AND EBEN SHAPIRO CONTRIBUTED TO THIS ARTICLE 9312160166 931216 WORLD TRADE TALKS FOR SMALL FIRMS BIG GAINS ARE SEEN IN THE FINE PRINT BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL SMALL BUSINESSES ARE PROBABLY GOING TO LIKE THE GATT ACCORD EVEN MORE THAN THEY THINK AND ALREADY THEY LIKE IT A LOT ENTREPRENEURS QUESTIONED ABOUT THE TRADE PACT SIGNED YESTERDAY UNANIMOUSLY FAVOR IT THE PRESIDENT OF A CALIFORNIA SEMICONDUCTOR COMPANY SAYS IT WILL ENABLE HIM TO CREATE AS MANY AS 150 JOBS A YEAR WITHIN FIVE YEARS THE FOUNDER OF A MAKER OF WELDING LENSES SAYS HE EXPECTS IT TO STRENGTHEN HIS PATENT PROTECTION OVERSEAS AND A TOP EXECUTIVE AT A NEW YORK CLOTHING MANUFACTURER A MEMBER OF A US INDUSTRY SUPPOSEDLY THREATENED BY THE PACT SAYS IT WILL MAKE HIS COMPANY MORE COMPETITIVE EVEN TOP EXECUTIVES WHO SEE NO DIRECT BENEFIT FROM THE SUCCESSFUL CONCLUSION OF THE TALKS OVERSEEN BY THE GENERAL AGREEMENT ON TARIFFS AND TRADE APPLAUD THE ACCORD AS A BOON TO THE WORLD ECONOMY BUT THE REAL BENEFIT TO SMALL MANUFACTURERS SAYS LESLIE STROH PUBLISHER OF THE EXPORTER MAGAZINE LIES LESS IN TARIFF REDUCTIONS THAN IN THE FINE PRINT WHICH FEW BUSINESS OWNERS HAVE READ MANDATING A REDUCTION IN NONTARIFF BARRIERS TO TRADE MANY NONTARIFF BARRIERS WILL BE TRANSLATED INTO TARIFFS AND SUBSEQUENTLY REDUCED IT'S ALL BURIED IN THE TECHNICAL FOOTNOTES MR STROH SAYS BUT IT WILL CREATE A SET OF GROUND RULES THROUGHOUT THE WORLD NOTING THAT NEARLY THREEFOURTHS OF ALL US MANUFACTURING SHIPMENTS OVERSEAS HAVE A VALUE OF LESS THAN 10000 HE ADDS THE TRANSACTION COST OF EXPORTING WILL GO DOWN DRAMATICALLY THAT SAVINGS IS EXACTLY WHAT APPEALS TO PAUL STOKSTAD PRESIDENT AND FOUNDER OF PASCO SCIENTIFIC INC A ROSEVILLE CALIF MAKER OF EDUCATIONAL LABORATORY EQUIPMENT EVEN CUTTING TARIFFS IN HALF SAY TO 5 FROM 10 WOULDN'T BE SIGNIFICANT FOR HIS COMPANY HE SAYS EVEN THOUGH EXPORTS ACCOUNT FOR ONETHIRD OF ANNUAL SALES OF 12 MILLION WE'RE NOT THAT PRICESENSITIVE HE SAYS THE REALLY BIG HELP TO US WILL BE GETTING RID OF ALL THE PAPERWORK HE SAYS THE CUSTOMPROCESSING COST ON AN ORDER OF 300 OR 400 CAN RUN AS HIGH AS 100 NOT ONLY WILL THE ELIMINATION OF RED TAPE PARE THAT EXPENSE IT WILL ALSO ENABLE PASCO SCIENTIFIC TO MARKET ITS PRODUCTS DIRECTLY TO CUSTOMERS INSTEAD OF THROUGH AN INTERMEDIARY FURTHER SAVING MONEY OF COURSE TARIFF REDUCTIONS DO MATTER A LOT TO MANY COMPANIES GEORGE PERLEGOS PRESIDENT OF ATMEL CORP SAYS EXPORTS ACCOUNT FOR ROUGHLY HALF OF THE SAN JOSE CALIF SEMICONDUCTOR MAKER'S ANNUAL SALES OF 200 MILLION THE TARIFF REDUCTION ON ITS 40 MILLION OF EXPORTS TO EUROPE ALONE TO 7 FROM 14 OVER FIVE YEARS WOULD ADD 3 MILLION A YEAR TO HIS BOTTOM LINE HE SAYS THAT IS ENOUGH MONEY TO CREATE 150 JOBS HE SAYS THE ACTUAL FINANCIAL WINDFALL WILL BE EVEN BIGGER HE PREDICTS WE'LL BE ABLE TO SELL MORE IN EUROPE WE'LL BE MUCH MORE COMPETITIVE HE SAYS LIKEWISE A TARIFF REDUCTION WILL ALLOW MALDEN MILLS INDUSTRIES INC A NEW YORK MAKER OF UPSCALE CLOTHING INCLUDING SKI WEAR TO GET A BETTER CRACK AT PROTECTED MARKETS SUCH AS EUROPE'S SAYS HOWARD ACKERMAN VICE PRESIDENT WHILE US TEXTILE MILLS THAT MASSPRODUCE INEXPENSIVE ITEMS ARE GOING TO BE SCARED OUT OF THEIR MINDS AT THE PROSPECT OF EVEN CHEAPER IMPORTS THE GATT ACCORD WILL MAKE US MORE COMPETITIVE HE SAYS EVEN TINY FIRMS FORESEE A BOOST IN THEIR FORTUNES HOLLAND PHILLIPS OWNER OF DRILEX CORP A ROMEOVILLE ILL EXPORTER OF DRILLING EQUIPMENT AND TRUCKENGINE PARTS SAYS HE SOMETIMES GETS SLAPPED WITH DUTIES AS HIGH AS 50 AS THOSE TARIFFS DECLINE AND THE WORLD ECONOMY PICKS UP I'LL PROBABLY ADD A COUPLE OF PEOPLE TO THE COMPANY'S WORK FORCE OF THREE EMPLOYEES HE SAYS FOR JAMES FERGASON PRESIDENT OF OPTICAL SHIELDS INC MENLO PARK CALIF THE BIG GATT DIVIDEND WILL BE BETTER PATENT PROTECTION AN INVENTOR OF LIQUIDCRYSTALDISPLAY TECHNOLOGY HE SAYS HIS COMPANY IS AGGRESSIVELY MARKETING A WELDING LENS THAT AUTOMATICALLY DARKENS WITHIN 1/10000TH OF A SECOND WHEN EXPOSED TO BURSTS OF LIGHT MR FERGASON SAYS HE IS DISTURBED BY EUROPE'S REFUSAL TO SCRAP QUOTAS ON USPRODUCED MOVIES AND SHOWS THAT APPEAR ON TV BUT HE HOPES THAT IS AN ABERRATION IT IS MY UNDERSTANDING THAT GATT WILL STRENGTHEN SUBSTANTIALLY INTELLECTUALPROPERTY SAFEGUARDS AGAINST PATENT AND COPYRIGHT INFRINGEMENTS HE SAYS MANY SMALLBUSINESS OWNERS SAY THE GATT ACCORD WON'T HAVE MUCH IMPACT ON THEIR OPERATIONS BUT THEY STILL LIKE IT I'M NOT GOING TO SUDDENLY STOP AND RETHINK MY EXPORT STRATEGY SAYS IAN DAVISON FOUNDER OF OF XEDIA CORP A WILMINGTON MASS MAKER OF INTERACTIVE COMPUTER NETWORKS ON A SCALE OF ONE TO 10 THE CLINTON HEALTHCARE PLAN GETS A NINE OR A 10 GATT GETS A FIVE STILL MR DAVISON SAYS HE IS ENCOURAGED BY THE PROVISIONS FOR DISMANTLING NONTARIFF TRADE BARRIERS SUCH AS EXPORTLICENSING REQUIREMENTS HE ALSO PREDICTS THE FREER TRADE CLIMATE ENGENDERED BY THE ACCORD AND BY THE RECENTLY CONCLUDED NORTH AMERICAN FREE TRADE AGREEMENT WILL MAKE BANKS MORE WILLING TO LEND AGAINST RECEIVABLES ON EXPORTS A SHIFT THAT WOULD BE PARTICULARLY HELPFUL TO SMALL COMPANIES OF COURSE SOME COMPANIES REALLY WON'T BE AFFECTED BY THE GATT AGREEMENT MORRIE ABRAMSON FOUNDER OF KENT ELECTRONICS CORP IN HOUSTON SAYS 98 OF HIS BUSINESS IS DOMESTIC AND THE REST IS SERVING DOMESTIC CUSTOMERS OVERSEAS BUT PHILOSOPHICALLY I'M ALL FOR FREE TRADE HE ADDS A MORE COMMON ATTITUDE IS HELD BY CARL DORAN SENIOR VICE PRESIDENT IN CHARGE OF INTERNATIONAL SALES AT FORD METER BOX INC A WABASH IND MAKER OF WATERWORKS VALVES AND FITTINGS THE EXPORT PORTION OF REVENUE AT FORD METER WHICH IS PROJECTED THIS YEAR TO BE ABOUT 9 MILLION OUT OF 85 MILLION WILL PROBABLY INCREASE HE SAYS URGING APPROVAL OF THE GATT PACT IS THE SORT OF THING WE WRITE OUR CONGRESSMAN ABOUT HE SAYS SOME INFORMAL BARRIERS TO TRADE CAN'T BE EASILY LEGISLATED AWAY OF COURSE MARK SZTELLE A VICE PRESIDENT AT MDA SCIENTIFIC INC IN LINCOLNSHIRE ILL SAYS EFFORTS BY THE MAKER OF TOXICGAS MONITORS TO BREAK INTO THE JAPANESE MARKET BRINGS UP THE EXCUSE THAT SELLING THERE REQUIRES A LONG NURTURING OF RELATIONSHIPS IS THAT UNFAIR IN MY HEART I THINK SO HE SAYS BUT IT IS HARD TO PROVE 9312160165 931216 KODAK'S STOCK PLUNGES AFTER CHAIRMAN SAYS ANALYSTS' 1994 FORECASTS ARE HIGH BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO'S STOCK PLUNGED NEARLY 12 AFTER THE COMPANY'S NEW CHAIRMAN GEORGE FISHER WARNED THAT ANALYSTS' 1994 EARNINGS ESTIMATES ARE WELL ABOVE WHAT I BELIEVE WE WILL BE ABLE TO DELIVER IN HIS FIRST STATEMENT SINCE HE OFFICIALLY TOOK OVER THE TOP JOB TWO WEEKS AGO MR FISHER SAID THAT COSTCUTTING ALONE IS NOT THE LONGTERM ANSWER TO KODAK'S POOR EARNINGS HISTORY INSTEAD HE PLACED MORE EMPHASIS ON GROWTH THIS DISAPPOINTED KODAK WATCHERS WHO HAD BID UP THE STOCK IN RECENT MONTHS ON THE BOARD'S PROMISE THAT THE NEW CHAIRMAN WOULD DELIVER FASTER AND DEEPER COST CUTS THIS GUY IS GOING TO DO THE COST CUTS BUT HE'S GOING TO DO IT AT HIS PACE GRIPED PRUDENTIAL SECURITIES ANALYST B ALEX HENDERSON THE TIME HORIZON HAS BEEN PUSHED OUT FROM TWO YEARS TO FIVE YEARS SHARES OF THE ROCHESTER NY PHOTOGRAPHY HEALTHCARE AND CHEMICALS CONCERN CLOSED AT 5550 A SHARE DOWN 725 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE DROP PULLED DOWN THE DOW JONES INDUSTRIAL AVERAGE WHICH FELL 2571 TO CLOSE AT 371692 ANALYSTS QUICKLY DOWNGRADED THE STOCK FROM BUY TO HOLD AND TRIMMED THEIR 1994 ESTIMATES ABOUT 1 TO 345 TO 365 A SHARE WITHOUT KODAK'S CHEMICAL DIVISION BEING SPUN OFF AT YEAR'S END THE ESTIMATES ARE 270 TO 280 A SHARE THAT WAS A REVERSAL FOR MANY ANALYSTS WHO HAD LOOKED TO MR FISHER AS KODAK'S SAVIOR FOLLOWING THE KODAK BOARD'S OUSTER OF PREVIOUS CHAIRMAN KAY R WHITMORE MR FISHER PREVIOUSLY CHAIRMAN AND CHIEF EXECUTIVE OF MOTOROLA INC IS CREDITED WITH TRANSFORMING MOTOROLA FROM A BARELY PROFITABLE SEMICONDUCTOR AND TWOWAY RADIO MAKER INTO THE WORLD'S DOMINANT MANUFACTURER OF PAGERS AND CELLULAR PHONES INVESTORS HAVE BEEN PUSHING FOR A MAJOR SHAKEUP AT KODAK WHICH HAS RESTRUCTURED FIVE TIMES IN THE PAST DECADE YET FAILED TO CUT COSTS OR SUBSTANTIALLY GROW EARNINGS PEAKED IN 1988 WHEN KODAK'S BIGGEST COMPETITOR FUJI PHOTO FILM CO OF TOKYO HAD ONLY A SMALL FOOTHOLD IN THE US BUT NOW FUJI AND PRIVATELABEL FILM MAKERS HAVE BECOME FIERCE COMPETITORS AND KODAK NO LONGER CAN RELY ON DOUBLEDIGIT GROWTH IN ITS FILM BUSINESS TO OFFSET SLOW GROWTH OR LOSSES IN OTHER SECTORS SUCH AS COPIERS MR FISHER'S STATEMENT DIDN'T EXPLAIN THE REASON FOR THE LOWERED 1994 EXPECTATIONS HE DECLINED ALL CALLS AND WARNED IN HIS STATEMENT THAT KODAK WILL HAVE NO FURTHER COMMENT FOR NOW AND WILL NOT IN THE FUTURE BE IN THE BUSINESS OF FORECASTING EARNINGS KODAK'S INVESTORRELATIONS OFFICIALS TOLD ANALYSTS PRIVATELY THAT THE 1994 EXPECTATIONS AREN'T THE RESULT OF A NEW STRATEGY LOSS OF MARKET SHARE OR ANY OTHER FUNDAMENTAL CHANGE IN KODAK'S BUSINESS INSTEAD THEY CITED HIGHER COSTS INCREASED CONTRIBUTIONS TO ITS PENSION PLAN A HIGHER TAX RATE AND HIGHER CORPORATE COSTS KODAK'S EXPLANATION JUST DOESN'T ADD UP IF THEY GAVE BETTER REASONS THE STOCK WOULDN'T HAVE BEEN HIT AS HARD AS IT WAS SAID GOLDMAN SACHS ANALYST JACK KELLY WHO DOWNGRADED THE STOCK FROM A BUY TO A HOLD ADDED DEAN WITTER ANALYST EUGENE GLAZER ALMOST EVERYTHING THEY'RE SAYING IS SOMETHING THEY SHOULD HAVE KNOWN BEFORE KODAK IMPLIED TO ANALYSTS THAT IT WILL LOWER ITS ASSUMED RATE OF RETURN ON ITS PENSION FUND AMONG THE HIGHEST IN CORPORATE AMERICA AT 105 THAT WILL FORCE KODAK TO PUT MORE MONEY INTO THE PLAN THEY MIGHT HAVE KNOWN THAT KODAK IS AMONG THE MOST AGGRESSIVE IN THEIR PENSION ASSUMPTIONS OF ANY MAJOR CORPORATION MR GLAZER SAID MR FISHER ALSO SAID HE AGREED WITH EXPECTATIONS THAT 1993 OPERATING EARNINGS WILL BE ESSENTIALLY FLAT ANALYSTS EXPECT KODAK TO EARN ABOUT 325 TO 330 A SHARE OR 250 TO 255 WITHOUT CHEMICALS THIS YEAR FOR 1992 KODAK HAD NET INCOME OF 994 MILLION OR 353 A SHARE AFTER RESTRUCTURING CHARGES OF 141 MILLION AND AN ACCOUNTING GAIN OF 152 MILLION SALES WERE 202 BILLION MR FISHER'S STATEMENT MAY SOUR THE MOOD AT A LUNCHEON THAT ANALYSTS WERE INVITED TO ATTEND TODAY WITH KODAK INVESTORRELATIONS OFFICIALS IN MANHATTAN KODAK HAD INTENDED TO MAKE PEACE WITH ANALYSTS WHO HAD BEEN SHARPLY CRITICAL OF THE COMPANY THIS YEAR WE ARE LOOKING FORWARD TO SEEING YOU IN A DIFFERENT FORUM THAN OUR USUAL 1993 DEBATES THE FAXED INVITATIONS READ 9312160164 931216 WHO'S NEWS WASHINGTON ENERGY CO WASHINGTON ENERGY CO SEATTLE WILLIAM P VITITOE 55 YEARS OLD FORMER PRESIDENT AND CHIEF EXECUTIVE OF AMERICAN NATURAL RESOURCES PIPELINE CO OF DETROIT WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OF THIS UTILITY CONCERN AMERICAN NATURAL RESOURCES PIPELINE IS A UNIT OF COASTAL CORP HE SUCCEEDS JAMES A THORPE 64 WHO RETIRED 9312160163 931216 US PETROLEUM IMPORTS BEGIN TO SURGE AS DEMAND RISES PRODUCTION DROPS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL US PETROLEUM IMPORTS ARE BEGINNING TO SURGE AS DEMAND RISES AND DOMESTIC PRODUCTION DECLINES THE OIL INDUSTRY'S LATEST MONTHLY FIGURES RELEASED YESTERDAY BY THE AMERICAN PETROLEUM INSTITUTE SHOW THAT IMPORTS OF CRUDE OIL AND PETROLEUM PRODUCTS JUMPED 11 FROM A YEAR EARLIER TO AVERAGE 87 MILLION BARRELS A DAY IN NOVEMBER IMPORTS OF PETROLEUM PRODUCTS WERE DOWN SLIGHTLY LAST MONTH BUT THE API SAID A LARGE INCREASE OF 940000 BARRELS A DAY IN CRUDE OIL IMPORTS MORE THAN OFFSET THE SLIGHT DECLINE IN VOLUMES OF REFINED PRODUCTS THUS ACCELERATING THE YEARTODATE IMPORT GROWTH FOR THE YEAR'S FIRST 11 MONTHS THE API SAID IMPORTS OF CRUDE OIL ALONE WERE UP 10 TO 67 MILLION BARRELS A DAY IMPORTS OF BOTH CRUDE AND PRODUCTS TOTALED NEARLY 85 MILLION BARRELS A DAY UP 75 FROM THE LIKE 1992 MONTHS SUCH AN INCREASE EXCEEDS OUR ESTIMATE OF UNDERLYING GROWTH OF 5 IN THE IMPORTS RATE THE API SAID IMPORTS NOW ACCOUNT FOR ABOUT ONEHALF THE OIL CONSUMED IN THE US BUT EVEN BEFORE THE LATEST API REPORT THE INDICATED IMPORTS CLIMB HAD BEEN SETTING OFF ALARMS IN THE US PARTICULARLY CONCERNED ARE US OIL PRODUCERS HURT BY THE EROSION IN THEIR OWN OUTPUT AND BY THE RECENT FREEFALL IN OIL PRICES TO FIVEYEAR LOWS JUST LAST WEEK THE INDEPENDENT PETROLEUM ASSOCIATION OF AMERICA AND OTHER PRODUCER ALLIANCES PETITIONED THE CLINTON ADMINISTRATION FOR RELIEF FROM LOWPRICED IMPORTS THE TYPE OF RELIEF WASN'T SPECIFIED BUT IMPORT FEES HAVE BEEN PROPOSED IN THE PAST AN OBVIOUS REASON FOR THE RISE IN IMPORTS IS A MODEST GAIN IN US PETROLEUM CONSUMPTION CITING SURPRISING STRENGTH FOR BOTH DISTILLATE FUEL OIL AND GASOLINE THE API SAID TOTAL PETROLEUM DELIVERIES ITS MEASUREMENT OF DEMAND ROSE 11 IN NOVEMBER TO NEARLY 174 MILLION BARRELS A DAY FOR THE 11 MONTHS OIL DELIVERIES WERE UP ONEHALF OF 1 TO 171 MILLION BARRELS A DAY BUT A MORE SIGNIFICANT FACTOR IN THE IMPORTS JUMP IS THE STEADY EROSION OF US CRUDE OIL OUTPUT THE DOMESTIC CRUDE OIL DECLINE WAS MODERATED LAST MONTH BY IMPROVEMENTS IN ALASKAN PRODUCTION FACILITIES STILL TOTAL CRUDE PRODUCTION FELL BY 15 IN NOVEMBER TO 69 MILLION BARRELS A DAY FOR THE FIRST 11 MONTHS OF 1993 CRUDE OIL PRODUCTION WAS DOWN NEARLY 5 THE API NOTED THAT THE INCREASE IN IMPORTS OF CRUDE OIL HAS HELPED TO BUILD UP US CRUDE INVENTORIES WHICH TOTALED 339 MILLION BARRELS AT THE END OF NOVEMBER THE PATTERN IS CONTINUING THIS MONTH ACCORDING TO THE API'S WEEKLY REPORTS ALTHOUGH ONE SET OF WEEKLY FIGURES HARDLY ESTABLISHES A TREND THE API REPORTED LATE TUESDAY THAT THE NATION IMPORTED 71 MILLION BARRELS A DAY IN CRUDE OIL ALONE LAST WEEK THAT WAS 881000 BARRELS A DAY LESS THAN THE EXTRAORDINARILY HIGH LEVEL OF THE PRIOR WEEK NOTED ROBERT BOSLEGO A WINCHESTER MASS CONSULTANT WHO ANALYZES API STATISTICS FOR HIS CLIENTS STILL MR BOSLEGO NOTED THAT THE FOURWEEK MOVING AVERAGE OF CRUDE OIL IMPORTS THAT HE CALCULATES WAS 95 HIGHER THAN THAT OF A YEAR EARLIER 9312160162 931210 CHINA A SPECIAL REPORT BUSINESS PLAN WORTH READING THERE'S A WELTER OF BOOKS AVAILABLE ABOUT CHINA THIS IS A SHORT LIST OF THE ONES OUR REPORTERS RECOMMEND TAKING ON YOUR FLIGHT TO BEIJING CHINA BUSINESS STRATEGIES FOR THE '90S BY ARNE J DE KEIJZER 1992 PACIFIC VIEW PRESS BERKELEY CALIF 255 PAGES THE BOOK RAMBLES BUT IT PROVIDES BASIC INFORMATION ON DOING BUSINESS IN CHINA ALONG WITH SOME REVEALING CASE STUDIES DEALING WITH THE CHINESE A PRACTICAL GUIDE TO BUSINESS ETIQUETTE IN THE PEOPLE'S REPUBLIC TODAY BY SCOTT D SELIGMAN 1992 WARNER BOOKS NEW YORK 205 PAGES THE AUTHOR SERVES UP LOADS OF USEFUL TIDBITS RANGING FROM BANQUETSEATING PROTOCOL TO ADVICE ABOUT GIFT GIVING BAREFOOT IN THE BOARDROOM BY BILL PURVES 1992 PAUL & CO PUBLISHERS CONCORD MASS 192 PAGES THIS QUIRKY MEMOIR OF A CANADIAN BUSINESSMAN RUNNING A FOUNDRY IN A REMOTE REGION OFFERS LESSONS FOR ANYBODY PLANNING TO SET UP SHOP FAR FROM THE BIG CITIES BEIJING JEEP HOW WESTERN BUSINESS STALLED IN CHINA BY JIM MANN 1989 SIMON & SCHUSTER NEW YORK 311 PAGES THOUGH DATED THIS IS STILL A FINE ACCOUNT OF WHAT IT'S REALLY LIKE TO DO DEALS IN CHINA THE SEARCH FOR MODERN CHINA BY JONATHAN D SPENCE 1990 WW NORTON NEW YORK 876 PAGES THIS COVERS THE LAST TWO IMPERIAL DYNASTIES AND THE MODERN ERA A PERIOD OF COOPERATION AND CLASHES WITH THE WEST ONE STEP AHEAD IN CHINA GUANGDONG UNDER REFORM BY EZRA F VOGEL 1989 HARVARD UNIVERSITY PRESS CAMBRIDGE MASS 544 PAGES OFTEN TEXTBOOK DULL THIS TOME IS FULL OF USEFUL INFORMATION AND PERSPECTIVE ON CHINA'S FASTESTGROWING REGION THE COMMUNIST PARTY OF CHINA AND MARXISM 19211985 A SELFPORTRAIT BY LASZLO LADANY 1992 HOOVER INSTITUTION PRESS STANFORD CALIF 585 PAGES THIS IS A TEDIOUS BUT INFORMATIVE ROAD MAP OF THE PARTY'S IDEOLOGICAL ZIGS AND ZAGS OVER THE YEARS SONS OF THE YELLOW EMPEROR THE STORY OF THE OVERSEAS CHINESE BY LYNN PAN 1990 SECKER & WARBURG LONDON 379 PAGES A CLEARLY WRITTEN LOOK AT CHINESE EMIGRATION THAT CAN HELP IN UNDERSTANDING THE OVERSEAS CHINESE WHO ARE RETURNING TO INVEST AMERICANS & CHINESE PASSAGE TO DIFFERENCES BY FRANCIS LK HSU 1981 UNIVERSITY OF HAWAII PRESS HONOLULU 562 PAGES FOR ANY FOREIGNER PLANNING TO LIVE IN CHINA THIS BOOK PROVIDES GOOD INSIGHT INTO WHAT MAKES YOUR PROSPECTIVE NEW NEIGHBORS TICK WILD SWANS THREE DAUGHTERS OF CHINA BY JUNG CHANG 1991 SIMON & SCHUSTER NEW YORK 528 PAGES THIS MAY BE THE BEST BOOK ON CHINA PUBLISHED IN THE PAST FIVE YEARS AN OFTEN TRAGIC TALE OF ONE FAMILY IT EXPLAINS EVERYTHING FROM FOOT BINDING TO CLASS STRUGGLE A SINGLE TEAR A FAMILY'S PERSECUTION LOVE AND ENDURANCE IN COMMUNIST CHINA BY WU NINGKUN AND LI YIKAI 1993 THE ATLANTIC MONTHLY PRESS NEW YORK 367 PAGES AN ELOQUENT AND EMOTIONAL TALE OF HOW CHINA'S COMMUNIST RULERS DESTROYED A GENERATION OF INTELLECTUALS 9312160161 931216 WORLD TRADE TALKS ENVIRONMENTAL GROUPS SAY DEAL POSES THREATS BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ENVIRONMENTAL PROTECTIONS IN BOTH THE US AND ABROAD MAY BE THREATENED BY THE TRADE AGREEMENT REACHED THIS WEEK IN GENEVA ENVIRONMENTAL GROUPS SAY THE LATEST ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE IS THE FIRST GATT NEGOTIATION IN WHICH US ENVIRONMENTAL ORGANIZATIONS PRESSED HARD FOR CHANGES FAVORABLE TO PROTECTION OF NATURAL RESOURCES AND HUMAN HEALTH THE GROUPS WON SEVERAL CONCESSIONS BUT THEY AREN'T SATISFIED THEIR CONCERNS HAVE BEEN MET SUFFICIENTLY AND ARE BEGINNING TO VOICE RUMBLINGS OF OPPOSITION THUS FAR THREE MAJOR ENVIRONMENTAL GROUPS THE NATIONAL WILDLIFE FEDERATION GREENPEACE AND THE WORLD WILDLIFE FUND HAVE SAID THEY FLATOUT OPPOSE GATT AND ALL THREE LEAVE OPEN THE POSSIBILITY OF SUPPORTING IT IF IT'S AMENDED OTHERS ARE WAITING TO SCRUTINIZE THE TRADE AGREEMENT'S LANGUAGE BEFORE RESPONDING BUT IT IS VIRTUALLY CERTAIN THAT NO MAJOR ENVIRONMENTAL GROUP WILL PRESS FOR CONGRESSIONAL PASSAGE OF THE AGREEMENT AS MANY DID FOR THE NORTH AMERICAN FREE TRADE AGREEMENT AND IT IS INCREASINGLY LIKELY THAT MOST WILL ACTIVELY OPPOSE IT THIS TIME THE ENVIRONMENTAL COMMUNITY IS FAIRLY UNITED SAID SCOTT HAJOST INTERNATIONAL COUNSEL FOR THE ENVIRONMENTAL DEFENSE FUND WHICH SUPPORTED NAFTA THE GENEVA AGREEMENT ENVIRONMENTALISTS SAY HAS FOUR KEY WEAKNESSES IT WILL ALLOW ATTACKS ON EXISTING US ENVIRONMENTAL LAW BY COUNTRIES WITH LESS RIGOROUS LAWS THAT CLAIM THE US REGULATIONS INHIBIT IMPORTS IT WILL DISCOURAGE THE SPREAD OF ENVIRONMENTAL REGULATION ABROAD BECAUSE COUNTRIES THAT ENFORCE TOUGH NEW REGULATIONS MIGHT BE IN VIOLATION OF THE GATT ACCORD IT WILL MAINTAIN SECRECY IN TRADE PROCEEDINGS THUS HAMPERING EFFORTS BY ENVIRONMENTAL GROUPS TO INFLUENCE THE OUTCOME AND IT DOESN'T SPELL OUT IN COMPLETE DETAIL THE ROLE ENVIRONMENTAL CONCERNS WILL PLAY IN FUTURE TRADE TALKS THE CHANGES SOUGHT BY ENVIRONMENTALISTS ALL GAVE INDIVIDUAL GOVERNMENTS GREATER FREEDOM TO REGULATE THE ENVIRONMENT WITHOUT FEAR OF TRADE REPRISAL THERE HAVE ALSO BEEN SOME DISCUSSIONS AMONG ENVIRONMENTAL GROUPS ABOUT CREATING MORE AGGRESSIVE TOOLS SUCH AS GREEN COUNTERVAILING DUTIES IMPOSED BY COUNTRIES WITH STRICT ENVIRONMENTAL REGULATION ON GOODS IMPORTED FROM NATIONS WITH MORE LAX REGULATION BUT SUCH INITIATIVES OFTEN BRANDED BY OPPONENTS AS ENVIRONMENTAL IMPERIALISM ARE RECOGNIZED AS CONTROVERSIAL AND WEREN'T PRESSED FOR INCLUSION IN THE GATT THE CLINTON ADMINISTRATION HAS PRESSED HARD TO ACCOMMODATE ENVIRONMENTAL CONCERNS IN THE TRADE TALKS MICKEY KANTOR THE US TRADE REPRESENTATIVE AND CAROL BROWNER HEAD OF THE ENVIRONMENTAL PROTECTION AGENCY MET WITH SEVERAL ENVIRONMENTAL GROUPS LAST THURSDAY AND US NEGOTIATORS WON SOME VICTORIES ON GREEN ISSUES ONE GATT PROVISION REQUIRES PARTICIPATING NATIONS TO PROMULGATE THE LEAST TRADERESTRICTIVE ENVIRONMENTAL REGULATIONS BUT ENVIRONMENTALISTS WON ADDITIONAL LANGUAGE THAT IN EFFECT WOULD GRANT NATIONS MORE WIGGLE ROOM TO DEFEND TOUGH REGULATIONS THE US ALSO PRESSED SUCCESSFULLY TO MAKE SUMMARIES OF CERTAIN DOCUMENTS RELATED TO TRADE PROCEEDINGS AVAILABLE TO THE PUBLIC AND THE POSSIBILITY OF FUTURE TRADE TALKS FOCUSED ON ENVIRONMENTAL ISSUES A SOCALLED GREEN ROUND IS STILL UNDER DISCUSSION BUT THE ENVIRONMENTAL GROUPS REMAIN DISSATISFIED WITH THE GAINS FOR EXAMPLE THE SUMMARIES TO BE MADE AVAILABLE CONCERNING TRADE DISPUTES ENVIRONMENTALISTS FEAR ARE LIKELY TO BE SKETCHY SUMMARIES DON'T ALWAYS TELL YOU THE FULL PICTURE SAYS MR HAJOST ENVIRONMENTALISTS SAY US REGULATIONS HAVE ALREADY BEGUN TO COME UNDER ATTACK FROM OTHER NATIONS IN TRADE PROCEEDINGS THE EUROPEAN COMMUNITY HAS CHALLENGED US FUELEFFICIENCY STANDARDS FOR IMPORTED AUTOMOBILES UNDER GATT AND MEXICO HAS WON A RULING AGAINST THE US MARINE MAMMAL PROTECTION ACT WHICH PREVENTS IMPORTS OF TUNA CAPTURED IN NETS THAT CAUSE HARM TO DOLPHINS MOREOVER GROUPS SUCH AS THE NATURAL RESOURCES DEFENSE COUNCIL AND THE NATIONAL WILDLIFE FEDERATION WHICH SUPPORTED NAFTA BELIEVE THE NAFTA EFFORT WON THEM CREDIBILITY FOR A POSSIBLE FIGHT AGAINST GATT WE CLEARLY CAN'T BE ACCUSED OF BEING PROTECTIONIST SAID STEWART HUDSON OF THE NATIONAL WILDLIFE FEDERATION 9312160160 931216 ASTROTECH INTERNATIONAL WARRANTS PITTSBURGH ASTROTECH INTERNATIONAL CORP SAID ITS BOARD APPROVED A ONEYEAR EXTENSION TO THE EXPIRATION DATE OF ITS PUBLICLY HELD WARRANTS TO PURCHASE COMMON STOCK THE WARRANTS ORIGINALLY SCHEDULED TO EXPIRE ON MARCH 31 1994 NOW EXPIRE ON MARCH 31 1995 NO FURTHER EXTENSIONS TO THE EXPIRATION DATE CAN BE MADE 9312160159 931216 WHO'S NEWS PENNSYLVANIA REAL ESTATE INVESTMENT TRUST PENNSYLVANIA REAL ESTATE INVESTMENT TRUST FORT WASHINGTON PA JONATHAN B WELLER 47 WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER A NEW POST AT THIS REALESTATE HOLDING COMPANY BY THE END OF JANUARY SYLVAN M COHEN 79 FORMERLY PRESIDENT REMAINS CHIEF EXECUTIVE OFFICER AND BECOMES CHAIRMAN MR WELLER PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT OF EASTDIL REALTY INC 9312160158 931216 SPAIN'S INFLATION RATE RISES MADRID SPAIN'S CORE INFLATION RATE A MEASURE OF CONSUMER PRICES EXCLUDING FOOD AND ENERGY PRICES ROSE 03 IN NOVEMBER FROM OCTOBER THE NATIONAL STATISTICS INSTITUTE SAID INFLATION REMAINED THE HIGHEST IN THE SERVICE SECTOR WHERE PRICES NOT INCLUDING RENTS ROSE 01 IN NOVEMBER FROM OCTOBER AND SOARED 88 FROM NOVEMBER 1992 9312160157 931216 WHO'S NEWS FIRST BANK SYSTEM INC FIRST BANK SYSTEM INC MINNEAPOLIS DUANE E WHITE 38 YEARS OLD FORMERLY EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF FBS MORTGAGE THE BANK HOLDING COMPANY'S MORTGAGE BANKING SUBSIDIARY WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE UNIT SUCCEEDING MICHAEL J KOZLAK 40 WHO RESIGNED 9312160156 931216 TROUBLES APLENTY IN NORTHERN IRELAND THE BLOODIEST HANDS ARE OFTEN PROTESTANT AND THAT COULD BE A SNAG IN PEACE PLAN REACHED BY BRITAIN AND IRELAND KILLING MORE THAN THE IRA BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL BELFAST NORTHERN IRELAND IN A CITY FAMOUS FOR KILLERS THE MOST NOTORIOUS IS CALLED MAD DOG HE IS A 29YEAROLD PROTESTANT AND POLICE BELIEVE HE HAS SLAIN AS MANY AS 18 CATHOLICS ONCE YOU GET YOUR FIRST FENIAN BLOOD HE RECENTLY TOLD LONDON'S GUARDIAN NEWSPAPER REFERRING TO THOSE FIGHTING BRITISH RULE HERE IT IS EASY AFTER THAT YET AMID THE FEARS OF VIOLENCE PROMPTED BY LOYALISTS LIKE MAD DOG TALK OF PEACE SWEPT THIS CITY YESTERDAY AFTER THE PRIME MINISTERS OF BRITAIN AND IRELAND AGREED ON A FRAMEWORK FOR ENDING THE NORTHERN IRELAND CONFLICT EACH GOVERNMENT GAVE GROUND ON IMPORTANT ISSUES AND BRITISH PRIME MINISTER JOHN MAJOR WHO HAD VOWED NEVER TO NEGOTIATE WITH TERRORISTS ISSUED AN UNPRECEDENTED OFFER IF THE OUTLAWED IRISH REPUBLICAN ARMY HALTS ITS BRUTALITY FOR THREE MONTHS ITS POLITICAL ARM SINN FEIN WILL BE INVITED TO THE BARGAINING TABLE IN LONDON FOR TALKS AIMED AT MAKING THE TRUCE PERMANENT WHILE THOUSANDS HERE AWAIT THE RESPONSE OF THE CATHOLIC IRA THE MORE IMPORTANT OPINION MAY BE THAT OF GUNMEN SUCH AS MAD DOG CONVINCED THAT ANY CHANGE IN THE BRITISH PROVINCE WILL COME AT THE EXPENSE OF ITS PROTESTANT MAJORITY LOYALIST TERRORISTS FOR MONTHS HAVE BEEN STEPPING UP THEIR CAMPAIGN OF VIOLENCE AND HAVE VOWED TO ESCALATE THEIR ATTACKS ONLY LAST WEEK THEY SHOT A CATHOLIC TAXI DRIVER AND HIS 16YEAROLD FARE AS WELL AS A MIDDLEAGED CATHOLIC MAN WHO MADE THE MISTAKE OF ANSWERING HIS FRONT DOOR THOSE INCIDENTS BROUGHT THE NUMBER OF PEOPLE LOYALIST TERRORISTS HAVE KILLED THIS YEAR TO 47 COMPARED WITH 35 BY THE IRA POLICE SAY THIS WILL BE THE FIRST YEAR THAT PROTESTANT TERRORISTS HAVE DONE MORE OF THE KILLING AND OBSERVERS SAY BRITAIN SHOULDN'T IGNORE THE MESSAGE THAT LOYALIST TERRORISTS ARE TRYING TO SEND THEY'RE READY FOR ALLOUT WAR SAYS THE REV ROY MAGEE A PRESBYTERIAN MINISTER HERE WHO COUNSELS THE PROTESTANT PARAMILITARY IN AN EFFORT TO DISARM THEM THE LOYALIST PARAMILITARY HAD NO IMMEDIATE RESPONSE TO THE SOCALLED PEACE DECLARATION YESTERDAY BETWEEN MR MAJOR AND IRISH PRIME MINISTER ALBERT REYNOLDS BUT WHILE SOME PROTESTANT POLITICAL LEADERS DESCRIBED THE DOCUMENT AS BENIGN OTHERS ALL BUT ISSUED A WAR CRY YOU HAVE SOLD ULSTER TO BUY OFF THE FIENDISH REPUBLICAN SCUM THE REV IAN PAISLEY LEADER OF THE DEMOCRATIC UNIONIST PARTY SAID IN A STATEMENT TO MR MAJOR CALLING THE AGREEMENT A BRIBE DESIGNED TO END IRA VIOLENCE HE ADDED YOU WILL LEARN IN A BITTER SCHOOL THAT ALL APPEASEMENT OF THESE MONSTERS IS SELFDESTRUCTIVE ON THE SHANKILL ROAD HERE IN BELFAST WHERE AN IRA BOMB KILLED NINE PROTESTANTS LESS THAN TWO MONTHS AGO A PROTESTANT CITY COUNCILOR PREDICTS AN UPSURGE IN LOYALIST VIOLENCE SAYING THE MAJOR/REYNOLDS AGREEMENT REWARDED THE IRA FOR VIOLENCE IF YOU SHOOT IF YOU KILL IF YOU BOMB THE BRITISH GOVERNMENT WILL SIT UP AND TAKE NOTE AND CONCEDE YOUR DEMANDS HE SAYS IT IS AN INDICATION OF THE DESPERATION FOR PROGRESS THAT AN AGREEMENT OFFERING A MERE POSSIBLE PATH TO AN END TO THE TROUBLES IS BEING TREATED AS EARTHSHATTERING TO BE SURE THE MINISTERIAL AGREEMENT IS NO GIFT TO THE IRA WHOSE MISSION IS TO FREE NORTHERN IRELAND OF BRITISH RULE AND UNITE IT WITH THE IRISH REPUBLIC IN THE DOCUMENT BRITAIN DOES AGREE TO PULL OUT AND ALLOW UNIFICATION BUT ONLY WITH THE CONSENT OF NORTHERN IRELAND VOTERS 60 OF WHOM ARE PROTESTANT AND WOULD PRESUMABLY OPPOSE UNIFICATION INDEED THE AGREEMENT STRIVES TO SHIFT THE VENUE OF THE DISAGREEMENT OVER IRISH UNIFICATION FROM BATTLEFIELD TO POLITICAL PLATFORM UNDER THE PACT THE IRISH REPUBLIC AGREES NOT TO PURSUE UNIFICATION WITHOUT THE CONSENT OF VOTERS IN ULSTER AS NORTHERN IRELAND IS OFTEN CALLED IF AT SOME UNSPECIFIED POINT IN THE FUTURE THE VOTERS IN ULSTER FORMALLY REJECT UNIFICATION THE IRISH REPUBLIC AGREES TO ASK ITS OWN VOTERS TO APPROVE A CHANGE TO THEIR CONSTITUTION WHICH CLAIMS A TERRITORIAL RIGHT TO THE NORTH MANY PROTESTANTS HERE CRINGE AT THE THOUGHT OF JOINING WITH A COUNTRY SO DOMINATED BY THE ROMAN CATHOLIC CHURCH THAT DIVORCE REMAINS ILLEGAL IT IS FAR FROM CERTAIN THAT THE AGREEMENT COMBINED WITH MR MAJOR'S OFFER OF INCLUSION IN FUTURE PEACE TALKS WILL PROMPT THE IRA TO CEASE ITS VIOLENCE EVEN AS NEGOTIATIONS BETWEEN MESSRS REYNOLDS AND MAJOR MOVED TOWARD FRUITION OVER THE WEEKEND THE IRA MURDERED TWO MEMBERS OF THE ROYAL ULSTER CONSTABULARY THE BRITISH SECURITY FORCE IN COUNTY TYRONE STILL THE IRA IN RECENT MONTHS HAS INDICATED A DESIRE TO END THE CONFLICT HOLDING SECRET TALKS WITH BRITISH GOVERNMENT REPRESENTATIVES AND EVEN SENDING PEACE FEELERS TO PROTESTANT TERRORISTS AND THE ACCORD PUTS PRESSURE ON THE IRA TO GO ALONG WITH DUBLIN THE GOVERNMENT IT WANTS IN PLACE IN NORTHERN IRELAND YET A TRUCE FOLLOWED BY IRA TALKS WITH THE BRITISH GOVERNMENT WOULD PROBABLY PANIC THE PROTESTANT COMMUNITY HERE VIRTUALLY ANY CHANGE IN THE STATUS QUO IS OPPOSED BY MANY UNIONISTS AND YET THEY RECOGNIZE THAT THERE IS TREMENDOUS POLITICAL INCENTIVE FOR MR MAJOR TO NEGOTIATE CHANGE WITH HIS RECESSIONBURDENED GOVERNMENT SEARCHING FOR COSTS TO CUT NONE IS MORE OBVIOUS THAN THE 45 BILLIONAYEAR EXPENSE OF MAINTAINING AN ARMY IN NORTHERN IRELAND OR THE ADDITIONAL COST OF RECOVERING FROM IRA BOMBS ONE IN LONDON'S BUSINESS DISTRICT LAST SPRING CAUSED ABOUT 15 BILLION IN DAMAGE ONLY 15 MILLION OF MR MAJOR'S NEARLY 60 MILLION CONSTITUENTS LIVE IN NORTHERN IRELAND AND MOST OF THE OTHERS CARE LITTLE ABOUT THE PROVINCE RESOLVING THE CONFLICT COULD MAKE MR MAJOR A HERO NOT ONLY AT HOME BUT ALSO IN THE INTERNATIONAL ARENA AND REGARDLESS OF THE OUTCOME PROPOSING CHANGE WON'T COST HIM ANY SUPPORT EXCEPT THAT OF ULSTER CONSERVATIVES WHOSE NUMBERS ARE TOO SMALL TO MATTER MUCH POLITICALLY ROBERT WORCESTER CHAIRMAN OF A LONDONBASED POLLING AGENCY SAYS FOR MAJOR THERE'S NO DOWNSIDE RISK HERE IN BELFAST HOWEVER IT IS PRECISELY THEIR LACK OF SWAY WITH THE LONDON GOVERNMENT THAT INFURIATES PROTESTANTS MANY NO LONGER TRUST THE BRITISH GOVERNMENT AFTER ALL IT WAS ONLY DAYS AGO THAT MR MAJOR AFTER MONTHS OF DENYING RUMORS OF TALKS WITH THE IRA ADMITTED THAT HIS GOVERNMENT HAD HAD CONTACTS WITH THE BELFASTBASED TERRORIST GROUP AS ULSTER PROTESTANTS SEE IT THE IRA HAS KILLED ITS WAY TO THE NEGOTIATING TABLE I HAVEN'T MET A SINGLE PROTESTANT WHO HASN'T EXPRESSED THE OPINION IN RECENT DAYS THAT VIOLENCE HAS HELPED THE IRA SAYS GLENN BARR WHO RUNS A LONDONDERRY JOBTRAINING AGENCY CONSIDER THE SCENE ONE RECENT EVENING AT A CROWDED PROTESTANT SOCIAL HALL HERE INSTEAD OF DIVING FOR COVER WHEN FIVE MEN IN MASKS AND FATIGUES MARCH INTO THE ROOM THE CROWD APPLAUDS THE TERRORISTS BELONG TO THE IRA'S DEADLY PROTESTANT COUNTERPART THE ULSTER FREEDOM FIGHTERS THEIR PURPOSE THIS NIGHT ANYWAY IS CEREMONIAL AS THEY CONDUCT A MILITARY EXERCISE MIDDLEAGED MEN AND WOMEN HURRAH TEENAGERS DANCE AND YOUNG MEN AIM IMAGINARY GUNS AT CATHOLICS THEY'RE PREPARED FOR WAR SAYS ONE OBSERVER RAY SMALLWOODS AS HE SIPS A PINT OF ALE RUSHING UP AN ELDERLY MAN HUGS MR SMALLWOODS SAYING WE LOVE YOU RAY YOU DID YOUR PART INDEED MR SMALLWOODS SERVED EIGHT YEARS FOR THE ATTEMPTED MURDER OF CATHOLIC POLITICIAN BERNADETTE DEVLIN IN 1980 IT WORRIES AUTHORITIES THAT MEMBERS OF THE WELLTODO PROTESTANT COMMUNITY SUCH AS THOSE AT THIS DANCE HALL ARE FINANCING AND EVEN JOINING THE LOYALIST PARAMILITARY FOR THE FIRST TIME MEMBERS OF THE UPPERMIDDLE CLASS ARE SUPPORTING THE LOYALIST PARAMILITARY FOR FEAR OF LOSING THEIR INVESTMENT IN NORTHERN IRELAND SAYS THE REV MAGEE MINISTER TO THE TERRORISTS JUST LAST MONTH BRITISH AUTHORITIES INTERCEPTED A SHIPMENT OF ARMS FROM POLAND THAT WAS EN ROUTE TO PROTESTANT TERRORISTS THE CACHE WAS VALUED AT ABOUT 355 MILLION AND INCLUDED 320 KALASHNIKOV RIFLES 53 RUSSIANMADE PISTOLS AMMUNITION AND TWO TONS OF COMMERCIAL EXPLOSIVES ENOUGH TO DEMOLISH A LARGE NEIGHBORHOOD THE PROTESTANT BUSINESS COMMUNITY ENORMOUSLY OVERSHADOWS ITS CATHOLIC COUNTERPART AND CONTRIBUTIONS TO THE LOYALIST PARAMILITARY AREN'T ALWAYS VOLUNTARY A TAXI DRIVER IN LISBURN SAYS BUSINESSES IN THIS PROTESTANT STRONGHOLD SOUTH OF BELFAST EITHER PAY PROTECTION MONEY OR GET HURT IF I DON'T PAY SEVEN POUNDS A WEEK THEY THROW A PETROL BOMB IN MY CAR HE SAYS ADDING THAT A RESISTANT PUB OWNER GOT HIS ARM BROKEN LAST MONTH A SECURITY OFFICER SAYS HE DOESN'T DOUBT THE STORY HE NOTES THAT ONLY WEEKS AGO A PROMINENT PROTESTANT POLITICIAN NORTH DOWN DISTRICT COUNCIL MEMBER BILLY BAXTER WAS ARRESTED ON CHARGES OF EXTORTION POLICE SAY HE WAS ORCHESTRATING THE PAYMENT FROM BUSINESSES IN HIS DISTRICT OF PROTECTION MONEY TO LOYALIST TERRORISTS MR BAXTER DENIES THE CHARGE UNTIL RECENTLY LOYALIST TERRORISTS WORKED IN RIVAL BANDS SUCH AS THE RED HAND COMMANDOS THE SHANKILL BUTCHERS AND THE ULSTER VOLUNTEER FORCE LOOSE STRUCTURE ALLOWED AUTHORITIES THEMSELVES PROTESTANTS TO INFILTRATE THE GROUPS AND SOMETIMES PREVENT PLANNED STRIKES BUT NOW THE TWO LARGEST ORGANIZATIONS THE UFF AND UVF HAVE FORMED AN ALLIANCE AND LIKE THE IRA RESTRUCTURED THEMSELVES INTO CELLS MAKING INFILTRATION HARDER THEIR OPERATIONS ALSO HAVE BECOME MORE PROFESSIONAL AND AUTHORITIES SAY IT IS ONLY A MATTER OF MONTHS BEFORE LOYALIST TERRORISTS WHO UNTIL NOW HAVE BEEN LIMITED MOSTLY TO GUNPLAY MATCH THE IRA'S BOMBING CAPACITY THE NUMBER OF PROTESTANTS BELONGING TO PARAMILITARY GROUPS IS ESTIMATED AT 15000 ALTHOUGH ONLY 1000 OR SO ARE SOLDIERS THESE ARE TYPICALLY MALE IN THEIR EARLY 20S FROM WORKINGCLASS HOMES AND UNEMPLOYED THIS POINTS UP AN IRONY IN A CONFLICT ARISING PARTLY FROM PROTESTANT ECONOMIC AND POLITICAL EXPLOITATION OF CATHOLICS MOST LOYALIST TERRORISTS ARE AS UNDERPRIVILEGED AS THE AVERAGE CATHOLIC YET IF THE ECONOMIC PROFILE OF THE LOYALIST TERRORIST HASN'T CHANGED IN 20 YEARS HIS VALUES HAVE LOYALIST PARAMILITARIES USED TO MAKE RETALIATORY KILLS OF CATHOLICS BELIEVED TO BE INVOLVED IN THE IRA OR ELSE SUPPORTIVE OF ITS ATTACKS ON PROTESTANTS MR SMALLWOODS SAYS HE PARTICIPATED IN THE ATTEMPT ON THE LIFE OF MS DEVLIN WHO SURVIVED MULTIPLE GUNSHOT WOUNDS BECAUSE OF WHAT HE CALLS HER ANTIPROTESTANT POLITICS RATHER THAN HER RELIGION I DON'T HATE CATHOLICS MY MOTHER WAS A CATHOLIC HE SAYS IN IRONIC IMITATION OF THE IRA LOYALIST TERRORISTS WARNING BRITAIN AGAINST ANY THOUGHTS OF A PULLOUT FROM ULSTER ARE TARGETING GOVERNMENT OFFICERS FOR INSTANCE THEY RECENTLY BROKE INTO THE HOUSE OF A PROTESTANT PRISON GUARD SHOOTING HIM IN FRONT OF HIS CHILDREN SAYS MR SMALLWOODS WHAT'S NEW AND SCARY ABOUT THE YOUNG MEMBERS IS THEIR ALIENATION FROM AUTHORITY IN RECENT MONTHS TERRORISTS HAVE KILLED 13 LAWMAKERS BELONGING TO THE SINN FEIN PARTY AS WELL AS SEVERAL SINN FEIN FAMILY MEMBERS THEY'RE BEING IN THEIR TERMS MORE SUCCESSFUL BELFAST CITY COUNCILMAN ROBERT LAVERY A SINN FEIN MEMBER SAYS IN THE UNDERSTATED LANGUAGE OF ULSTER FINGERING A BULLET HOLE IN THE WALL OF HIS LIVING ROOM MR LAVERY NODS ACROSS THE ROOM AT ONE OF THE PROTESTANT TERRORISTS' SUCCESSES A PHOTOGRAPH OF HIS SON A 21YEAROLD ENGINEERING STUDENT GUNNED DOWN AS HE WATCHED TELEVISION IN AUGUST THE KILLING CAME LESS THAN A YEAR AFTER GUNMEN ENTERED THE HOME OF MR LAVERY'S BROTHER AND SHOT HIM DEAD AS HE WRAPPED CHRISTMAS GIFTS ONLY DAYS AGO GUNMEN ATTACKED MR LAVERY'S HOUSE AGAIN NARROWLY MISSING HIS 16YEAROLD SON NEILL SOME CATHOLICS ARE TARGETED FOR ECONOMIC REASONS MANY IN THE UNIONIST COMMUNITY CONTEND THAT GOVERNMENT JOBS PROGRAMS ARE GIVING PROTESTANT POSTS TO CATHOLICS ALTHOUGH UNEMPLOYMENT AMONG CATHOLIC MEN NEARLY 30 OVERALL AND 70 IN SOME AREAS REMAINS FAR HIGHER THAN PROTESTANT UNEMPLOYMENT THE NUMBER OF OUTOFWORK PROTESTANTS IS GREATER WHAT WORRIES THE REV MAGEE IS THE ATTENTION LOYALIST GUNMEN ARE GETTING NOW THAT THEY HAVE STEPPED UP THEIR CAMPAIGN OF DEATH FOR YEARS WHILE THE IRA RECEIVED ALL KINDS OF PUBLICITY NOBODY WAS INTERESTED IN THE LOYALIST PARAMILITARY HE SAYS BUT SUDDENLY THE AUTHORITIES AND MEDIA ARE COURTING THEM HE SAYS AND THAT JUST VINDICATES THEIR BELIEF THAT VIOLENCE PAYS 9312160155 931210 CHINA A SPECIAL REPORT AT A GLANCE MAKING THE CALL HERE'S A PROVINCEBYPROVINCE RUNDOWN OF SOME OF THE RESOURCES YOU MIGHT NEED AND THEIR TELEPHONE NUMBERS AS OF NOVEMBER 1993 WHEN YOU CALL THE NUMBERS IN CHINA YOU WON'T GET ANYWHERE UNLESS YOU OR YOUR REPRESENTATIVE SPEAKS CHINESE YOUR BEST BET FAX FIRST IN ENGLISH OR CHINESE AND EXPLAIN WHAT YOU WANT IF YOU DON'T GET A RESPONSE FOLLOW UP WITH A CALL AND BE PERSISTENT CCPIT CHINESE COUNCIL FOR THE PROMOTION OF INTERNATIONAL TRADE THE CHINESE GOVERNMENT'S EQUIVALENT OF A CHAMBER OF COMMERCE ITS PURPOSE IS TO FOSTER TRADE AND FOREIGN INVESTMENT FAO PROVINCIAL FOREIGN AFFAIRS OFFICE THIS IS A MAIN CONTACT FOR FOREIGNERS WISHING TO ARRANGE MEETINGS WITH CHINESE GOVERNMENT OFFICIALS COFERT FOREIGN ECONOMIC RELATIONS AND TRADE COMMISSION COFERT APPROVES JOINT VENTURES AND THE OPENING OF REPRESENTATIVE OFFICES FOR FOREIGN COMPANIES IT CAN ALSO ACT AS A MATCHMAKER FOR FOREIGN AND LOCAL COMPANIES CITS CHINESE INTERNATIONAL TRAVEL SERVICE THIS IS THE CHINESE GOVERNMENT'S MONOPOLY TRAVEL SERVICE IT CAN ARRANGE TICKETS HOTEL RESERVATIONS GROUND TRANSPORTATION GUIDES AND TOURS PUBLIC SECURITY BUREAU HANDLES VISAS AND RESIDENCY PERMITS AMERICAN CHAMBER OF COMMERCE AMERICAN CHAMBER OF COMMERCE REGIONAL PRESIDENTS BEIJING JOHN HART C/O SCHENKERS INTERNATIONAL FORWARDERS ASSOCIATION OF BRITISH COMMERCE IN CHINA REGIONAL CONTACTS FRENCH CHAMBER OF COMMERCE FRENCH CHAMBER OF COMMERCE REGIONAL PRESIDENTS BEIJING JOACHIM GLATTER OF PUNDER VOLHARD WEBER & AXSTER JAPANESE CHAMBER OF COMMERCE JAPANESE CHAMBER OF COMMERCE REGIONAL CONTACTS GERMANY BONN 49228 361095 361096 COMMERCIAL SECRETARY INDIA NEW DEHLI 9111 600328 600329 COMMERCIAL SECRETARY US WASHINGTON DC 202 3282500 COMMERCIAL SECRETARY NATIONAL TRADE DATA BANK A DATABASE OF MORE THAN 100000 DOCUMENTS CONTAINING INFORMATION ON FOREIGN TRADE AND EXPORT PROMOTION FROM 17 US GOVERNMENT AGENCIES INCLUDING US EMBASSIES ABROAD THE DATA ARE AVAILABLE AT THE TRADE INFORMATION CENTER TEL YOU'VE HEARD ALL THE HORROR STORIES ABOUT BUREAUCRATIC INTERFERENCE IN CHINA BUT NOT ALL OF CHINA'S LEADERS ARE MEDDLERS HERE'S AN INFORMAL LIST COMPILED BY OUR REPORTERS OF BUREAUCRATS WHO ARE A LITTLE MORE INCLINED TO HELP YOU CUT THROUGH THE RED TAPE RUAN CHONGWU NONONSENSE GOVERNOR OF HAINAN PROVINCE KNOWN FOR NOT BOWING TO THE CHILDREN OF BEIJING LEADERS WHO USED TO HAVE FREE REIN HERE TEL 86898331038 XIAO YANG OUTSPOKEN AND REASONABLE GOVERNOR OF SICHUAN PROVINCE WHO IS TRYING TO LURE FOREIGN INVESTORS INLAND TEL 8628664759 ZHANG YINGWEN URBANE DIRECTOR OF SICHUAN PROVINCIAL COMMISSION OF FOREIGN ECONOMIC RELATIONS AND TRADE TEL 8628331432 QIU JIAZAN ACCESSIBLE 40YEAROLD VICE MAYOR OF SHISHI CITY FUJIAN PROVINCE TEL 86595872773 KE MAOSHENG MAYOR OF LANZHOU GANSU PROVINCE WHO IS AN ENTHUSIASTIC SALESMAN FOR HIS CITY TEL 86931462951 WANG XIAOCHUN DIVISION CHIEF OF THE FOREIGN TRADE AND ECONOMIC COOPERATION DEPARTMENT GANSU PROVINCE WHO ONCE LIVED IN SAN FRANCISCO AND UNDERSTANDS FOREIGN INVESTORS TEL 86931417767 YU ZHENGSHENG STRAIGHTTALKING MAYOR OF QINGDAO SHANDONG PROVINCE WHO WANTS TO LURE FOREIGN INVESTORS TEL 86532515418 CHEN YU YOUNG AND ENERGETIC VICE DIRECTOR OF THE QINGDAO MUNICIPAL COMMISSION OF FOREIGN ECONOMIC RELATIONS AND TRADE TEL BO XILAI PRACTICALMINDED MAYOR OF DALIAN IN LIAONING PROVINCE WHO ALSO HAS CLOUT IN BEIJING HIS FATHER WAS A FORMER TOP OFFICIAL AND LONG MARCH VETERAN TEL 864113631831 WANG YONGDUO BUSINESSLIKE USEDUCATED GENERAL MANAGER OF LIAONING CHINA INTERNATIONAL TRUST & INVESTMENT CORP TEL ZHANG ZONGXU DEPUTY MAYOR OF XIAMEN FUJIAN PROVINCE WHO LIVED IN TEXAS FOR SIX YEARS AND TRIES TO HELP INVESTORS CUT THROUGH RED TAPE TEL 86592552326 LIU ZEYING LIVELY AND PRAGMATIC VICE DIRECTOR OF THE NINGXIA PROVINCE BUREAU OF FOREIGN ECONOMIC RELATIONS AND TRADE TEL ZHAO BAOJIANG FORMER MILITARY ARCHITECT WHO IS MAYOR OF WUHAN HUBEI PROVINCE AND IS WORKING HARD TO REFURBISH HIS CITY'S LARGE BUT AGED INDUSTRIAL BASE TEL 8627215940 SHA LIN COMPETENT AND APPROACHABLE VICE MAYOR OF SHANGHAI WHO STUDIED IN THE US AND FORMERLY HEADED PLANNING FOR THE CITY'S NEW FOREIGNINVESTMENT DISTRICT PUDONG TEL 86213212810 XU KUANGDI AFFABLE SENIOR SHANGHAI VICE MAYOR WHO TAKES CARE OF THE NUTS AND BOLTS OF RUNNING THE CITY TEL 86213212810 ZHANG XIANG VICE DIRECTOR OF THE SHANGHAI COMMISSION OF FOREIGN ECONOMIC RELATIONS AND TRADE TEL 86212752200 SUN ZHENYU SERIOUS AND SOPHISTICATED NEGOTIATOR IN USCHINA TRADE TALKS AND DIRECTORGENERAL OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION'S AMERICANAFFAIRS DIVISION TEL WU JIE ENTHUSIASTIC AND CAPABLE DIRECTOR OF THE GENERAL ADMINISTRATION OFFICE OF XIAMEN FOREIGN INVESTMENT EXECUTIVE COMMITTEE TEL 86592554859 CHI FULIN DIRECTOR OF THE HAINAN PROVINCE INSTITUTIONAL REFORM RESEARCH INSTITUTE POLICY STUDY DIVISION AND THE ARCHITECT OF SOME OF CHINA'S MOST PROGRESSIVE ECONOMIC POLICIES TEL 86898332525 TANG XIAOPING EXECUTIVE VICE PRESIDENT AND SENIOR ENGINEER OF CHINA NATIONAL AEROTECHNOLOGY IMPORT & EXPORT CORP A KEY PLAYER IN CHINA'S AVIATION INDUSTRY TEL 8614017305 9312160154 931216 FINANCING BUSINESS AMWAY CORP AMWAY CORP ADA MICH ANNOUNCED THE INITIAL PUBLIC OFFERING OF COMMON STOCK OF AMWAY ASIA PACIFIC LTD A NEWLY CREATED HONG KONGBASED COMPANY THAT WILL DISTRIBUTE AMWAY PRODUCTS IN AREAS INCLUDING HONG KONG CHINA AND AUSTRALIA AMWAY SAID THAT OF THE 79 MILLION SHARES OFFERED YESTERDAY 47 MILLION WERE TO BE SOLD IN THE US AMWAY ASIA PACIFIC'S NEW YORK STOCK EXCHANGE SYMBOL IS AAP AMWAY CORP A CLOSELY HELD COMPANY MAKES BEAUTY AND HEALTH PRODUCTS SUCH AS SOAP AND LOTION 9312160153 931216 WHO'S NEWS JEFFERSON BANKSHARES INC JEFFERSON BANKSHARES INC CHARLOTTESVILLE VA O KENTON MCCARTNEY WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS BANK HOLDING COMPANY AND ITS JEFFERSON NATIONAL BANK UNIT EFFECTIVE JAN 1 MR MCCARTNEY 50 YEARS OLD SUCCEEDS HOVEY S DABNEY 70 WHO CONTINUES AS CHAIRMAN OF BOTH COMPANIES MR MCCARTNEY CONTINUES AS PRESIDENT OF JEFFERSON BANKSHARES AND THE UNIT 9312160152 931216 WORLD TRADE TALKS FOREIGN EXECUTIVES SING GATT'S PRAISES BUT FEW ANTICIPATE IMMEDIATE BENEFITS A WALL STREET JOURNAL NEWS ROUNDUP IT'S THE BEST CHRISTMAS PRESENT FOR THE WORLD ECONOMY THE SENTIMENT IS SPANISH EXPRESSED BY OSCAR FANJUL HEAD OF SPAIN'S GIANT OIL CONCERN REPSOL SA BUT IT LARGELY SUMS UP REACTION OUTSIDE THE US TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE COMPLETED IN GENEVA EXECUTIVES ELSEWHERE IN EUROPE AND IN ASIA AND LATIN AMERICAARE SIMILARLY ENTHUSIASTIC CERTAINLY THE AGREEMENT HAS ITS DETRACTORS IN INDIA HK MADHOK OF JYOTI APPARELS IS ONE IF THE MARKET IS FREE HE SAYS CUSTOMERS MAY PREFER TO BUY FROM HONG KONG AND CHINA RATHER THAN INDIA AND EVEN SUPPORTERS HAVE RESERVATIONS IT'S NOT AS IF OUR COUNTRY IS COMPLETELY SATISFIED WITH THE AGREEMENT SAYS MASARU HAYAMI HEAD OF THE JAPAN ASSOCIATION OF CORPORATE EXECUTIVES BUT I GUESS THAT'S INEVITABLE A SAMPLING BY REGION OF WORLD REACTION TO GATT FOLLOWS IN EUROPE EXECUTIVES OF MANY MULTINATIONALS OBSERVE THAT THE AGREEMENT WHILE WELCOME WON'T MAKE MUCH DIFFERENCE TO THEIR EXPORTS THAT'S BECAUSE MANY BIG COMPANIES LONG AGO LEARNED TO GET AROUND COUNTRIES' TRADE BARRIERS BY PRODUCING THEIR WARES LOCALLY INSTEAD OF EXPORTING THEM IN ITALY LUCIANO BENETTON SAYS HIS COMPANY BENETTON GROUP SPA LONG AGO GOT USED TO FIGHTING IN MANY MARKETS ANOTHER EXAMPLE IS BEIERSDORF AG THE GERMAN MAKER OF NIVEA SKIN PRODUCTS AND OTHER CONSUMER GOODS WE'RE PRODUCING LOCALLY IN MOST OF THE COUNTRIES WHERE WE SELL OUR PRODUCTS A SPOKESMAN SAYS SO TRADE ISSUES DON'T AFFECT US THAT MUCH A FEW EXECUTIVES SAY CERTAIN DETAILS OF THE DEAL SUCH AS ITS PROVISIONS ON LONGRUNNING DISPUTES OVER OIL SEEDS AND TEXTILES DEEPLY AFFECT THE WAY THEY DO BUSINESS BUT MANY EUROPEAN BUSINESS LEADERS SEEM MORE WORKED UP ABOUT WHAT THE AGREEMENT OMITS RATHER THAN WHAT IT INCLUDES FRENCH FILM MAKERS AS A PRIME EXAMPLE HAIL THE EXCLUSION OF AUDIOVISUAL ISSUES FROM THE DEAL THIS IS A 100 FRENCH VICTORY A MIRACLE SAYS DANIEL TOSCAN DU PLANTIER CHAIRMAN OF FRANCE'S FILM EXPORT ASSOCIATION UNIFRANCE PASCAL ROGARD THE GENERAL SECRETARY OF A FRENCH MOVIE PRODUCERS' GUILD SAYS HE CONSIDERS THE DEAL A DEFEAT FOR THE MAIN HOLLYWOOD PRODUCERS' LOBBY LED BY JACK VALENTI IF THE HOLLYWOOD LOBBY HAD BEEN MORE DIPLOMATIC THEY MIGHT HAVE OBTAINED MORE MR ROGARD SAYS IT WAS BADLY MANAGED AMONG THOSE EUROPEAN EXECUTIVES WHO APPLAUD THE AGREEMENT ROGER HURN CHAIRMAN OF THE UNITED KINGDOM'S SMITHS INDUSTRIES PLC SEES IT AS A SIGNIFICANT BOOST FOR HIS COMPANY WHICH IS A MAJOR AEROSPACE INDUSTRIAL AND MEDICAL SUPPLIER WHATEVER THE DEAL IS OUR AEROSPACE SIDE WILL BENEFIT FROM THIS AGREEMENT BECAUSE AS THE WORLD RECOVERS EVERYONE WILL HAVE MORE MONEY AND WANT TO TRAVEL MORE HE SAYS I'M WHOLLY POSITIVE ABOUT IT STILL MANY AEROSPACE EXECUTIVES FRET THAT A YEARLONG EXTENSION IN AIRCRAFT NEGOTIATIONS COULD EVENTUALLY HURT THEM WOLFGANG PILLER EXECUTIVE VICE PRESIDENT OF DAIMLERBENZ AG'S DEUTSCHE AEROSPACE AG UNIT IN MUNICH WARNS THAT THE DELAY COULD FORESHADOW AN EVENTUAL EUROPEAN AGREEMENT TO END DIRECT SUBSIDIES TOUGHER LIMITS ON DIRECT SUBSIDIES FOR AIRCRAFT DEVELOPMENT BY EUROPEANS WHICH ARE ADVOCATED BY THE US WOULD BE A DISASTER FOR THE EUROPEAN AEROSPACE INDUSTRY SAYS MR PILLER WHOSE COMPANY IS EUROPE'S LARGEST AEROSPACE MANUFACTURER SUCH AN AGREEMENT WOULD ALLOW THE AMERICANS TO GO ON WITH INDIRECT SUPPORT OF THEIR INDUSTRY WHICH IS SEVERAL TIMES BIGGER THAN THE DIRECT SUPPORT TRADITIONAL IN EUROPE I WOULD SAY THAT THIS COULD IN THE MEDIUMTERM PROVE TO BE THE END OF THE EUROPEAN AIRCRAFT INDUSTRY MANY EXECUTIVES IN EUROPE WHILE FAVORING GATT DON'T ANTICIPATE IMMEDIATE BENEFITS FROM THE AGREEMENT MARTIN BROUGHTON CHIEF EXECUTIVE OF BA T INDUSTRIES LTD THE HUGE TOBACCO AND INSURANCE CONCERN SAYS THERE'S NOTHING IN IT THAT WILL HAVE AN IMMEDIATE IMPACT FOR US BUT I HAVE NO DOUBT ABOUT THE BOOST IT WILL GIVE TO THE WORLD ECONOMY WHILE JAPANESE STEEL MAKERS AND MUCH OF THE NATION'S HIGHLY PROTECTED AGRICULTURAL BUSINESSES ARE UNHAPPY WITH GATT THE GENERAL RESPONSE AMONG JAPAN'S BUSINESS EXECUTIVES IS RELIEF THAT PROTECTIONISM IS BEING DERAILED THE AGREEMENT WILL KEEP AND STRENGTHEN FREE TRADE SAYS YUTAKA KUME CHAIRMAN OF NISSAN MOTOR CO AND HEAD OF JAPAN'S INFLUENTIAL AUTOMOBILE MANUFACTURERS' ASSOCIATION JAPAN FEELS IT CONTRIBUTED A GREAT DEAL TO THE AGREEMENT BY LIFTING A VIRTUAL BAN ON RICE IMPORTS AN EMOTIONALLY CHARGED ISSUE WITH JAPANESE FARMERS BUT ANALYSTS POINT OUT THAT JAPANESE INDUSTRY BENEFITS ENORMOUSLY FROM FREER TRADE KAZUO NUKAZAWA A MANAGING DIRECTOR AT KEIDANREN JAPAN'S POWERFUL FEDERATION OF ECONOMIC ORGANIZATIONS OBSERVES THAT FREE TRADE IS WINNING IN THE US ADDING THAT IS GOOD FOR THE JAPANESE ALTHOUGH MOST JAPANESE COMPANIES WON'T DERIVE IMMEDIATE BENEFITS FROM GATT THERE WILL BE SOME INSTANT WINNERS THESE INCLUDE SHOE MANUFACTURERS WHO SUDDENLY WILL BE ABLE TO BUY CHEAPER IMPORTED MATERIALS UNTIL NOW JAPAN'S HEFTY TARIFFS HAVE FORCED SHOE COMPANIES TO MOVE MUCH OF THEIR PRODUCTION OFFSHORE IN CONTRAST SUCH TRADITIONALLY PROTECTED INDUSTRIES AS DAIRY AND PROCESSEDFOOD PRODUCTS WILL SUFFER AS REDUCTION OF JAPAN'S IMPORT RESTRICTIONS OPENS THE MARKETS FOR THOSE PRODUCTS TO LOWPRICED ASIAN COMPETITORS ASIANPACIFIC OFFICIALS AND BUSINESS EXECUTIVES ARE GROUSING ABOUT MANY OF THE TERMS OF THE NEW GLOBAL TRADE ACCORD BUT THEY GENERALLY AGREE THAT NO DEAL AT ALL WOULD HAVE BEEN WORSE OVERALL WE'RE HAPPY THE ROUND HAS FINALLY COME TO A SUCCESSFUL CONCLUSION SAID INDIAN COMMERCE SECRETARY TEJINDER KHANNA EVEN AS BOTH HOUSES OF THE COUNTRY'S PARLIAMENT WERE PARALYZED BY RAUCOUS PROTESTS OF LAWMAKERS OPPOSED TO THE ACCORD THE REGION'S FOOD EXPORTERS AUSTRALIA NEW ZEALAND INDONESIA MALAYSIA AND THAILAND WILL GAIN FROM LOWER IMPORT BARRIERS AND HIGHER PRICES AS A RESULT OF A USEUROPEAN COMMUNITY AGREEMENT TO REDUCE FARM SUBSIDIES THE PATH TOWARDS A FREE WORLDWHEAT TRADE HAS BEEN MAPPED SAYS CLINTON CONDON CHAIRMAN OF THE AUSTRALIAN WHEAT BOARD MEANTIME RICE FARMERS IN THAILAND THE WORLD'S BIGGEST RICE EXPORTER ARE REFERRING TO GATT AS THE GIFT THE ULTIMATE END OF THE QUOTA SYSTEM WAS WELCOME NEWS TO SOME APPAREL MAKERS RIGHT NOW US RETAILERS COME TO ME WANTING TO ORDER MILLIONS OF SHIRTS AND I HAVE TO TELL THEM SORRY I CAN'T SUPPLY YOU BECAUSE I DON'T HAVE ANY MORE QUOTA' SAYS SUNJOTO TANUDJAJA PRESIDENTDIRECTOR OF PT GREAT RIVER INDUSTRIES AN INDONESIAN GARMENT PRODUCER THE ASIAN ECONOMIES THAT MAY SEE THE MOST WRENCHING CHANGES AS A RESULT OF THE AGREEMENT AREN'T CURRENTLY GATT MEMBERS CHINA AND TAIWAN WORKING PARTIES ARE CURRENTLY DRAWING UP THE TERMS UNDER WHICH BOTH BEIJING AND TAIPEI WILL AGREE TO SIGN ON TO THE VARIOUS GATT ACCORDS TAIPEI FOR EXAMPLE WILL HAVE TO LIBERALIZE ITS HEAVILY PROTECTED RICE AND AGRICULTURAL MARKETS IN MEXICO MANY ECONOMISTS SAY THE NORTH AMERICAN FREE TRADE AGREEMENT WILL HAVE A FAR GREATER IMPACT THAN GATT BECAUSE 70 OF MEXICO'S TRADE IS WITH THE US MAURO LEOS A PRIVATE ECONOMIST SAYS IF YOU COMPARE THE BENEFITS FROM NAFTA AND THOSE THAT SHOULD COME FROM GATT IT IS ALMOST 100TO1 IN TERMS OF THE DIRECT IMPACT OF NAFTA IN SOUTH AMERICA THE GENERAL FEELING AMONG EXECUTIVES IS THAT ANY FREETRADE AGREEMENT IS BETTER THAN NONE BUT THAT THE CURRENT ACCORD FALLS FAR SHORT OF REPEALING THE PROTECTIONIST BARRIERS AND UNFAIR PRACTICES THAT SOUTH AMERICANS SEE AS BIG OBSTACLES TO EXPANDING EXPORTS GATT IS UNDENIABLY POSITIVE BUT IT DOES LITTLE IMMEDIATELY SAYS STEPHAN DECRAEMER EXPORT DIRECTOR OF BRAZIL'S PERDIGAO AGROINDUSTRIAL SA A SAO PAULOBASED COMPANY THAT EXPORTS ABOUT 142 MILLION OF CHICKENS A YEAR JORGE CAMPBELL AN ARGENTINE GRAIN TRADER HAS A MORE SUBSTANTIAL CRITICISM GATT'S EMPHASIS ON TARIFFS AND SUBSIDIES DOESN'T PROVIDE AN ANSWER TO THE NEW PARADIGM OF WORLD TRADE HE SAYS TRADE TODAY IS MUCH MORE INTANGIBLE AND CONCERNS THINGS THAT ARE DIFFICULT TO BE CONTROLLED THROUGH CUSTOMS SUCH AS SOFTWARE SATELLITE COMMUNICATIONS OR ENVIRONMENTAL ASPECTS GATT IS LOSING RELATIVE IMPORTANCE BECAUSE IMPORT DUTIES ARE LOSING RELATIVE IMPORTANCE 9312160151 931216 INTERNATIONAL MITSUKOSHI PARTNER PLAN STORES TOKYO MITSUKOSHI LTD A MAJOR JAPANESE DEPARTMENT STORE AND ITS TAIWANESE PARTNER WILL OPEN TWO NEW DEPARTMENT STORES IN TAIWAN ON DEC 23 A MITSUKOSHI SPOKESMAN SAID HE SAID THE ADDITIONAL OPERATIONS WILL BRING TO THREE THE NUMBER OF STORES OPERATING BY SHIN KONG MITSUKOSHI DEPARTMENT STORE CO THE 5050 JOINT VENTURE THAT MITSUKOSHI AND TAIWAN'S SHIN KONG GROUP LAUNCHED IN NOVEMBER 1989 WITH THE TWO NEW TAIWAN STORES MITSUKOSHI WILL HAVE 18 OVERSEAS DEPARTMENT STORES IN NINE COUNTRIES 9312160150 931216 DIVIDEND NEWS UJB FINANCIAL CORP UJB FINANCIAL CORP PRINCETON NJ BOOSTED ITS QUARTERLY DIVIDEND 31 TO 21 CENTS A SHARE FROM 16 CENTS THE DIVIDEND WILL BE PAYABLE FEB 1 TO SHAREHOLDERS OF RECORD JAN 6 THE INCREASE THE SECOND IN NINE MONTHS REFLECTS OUR CONTINUED IMPROVEMENT IN EARNINGS SAID CHAIRMAN T JOSEPH SEMROD HE NOTED THAT NET INCOME ROSE 51 FOR THE FIRST NINE MONTHS DESPITE A ONETIME 127 MILLION RESTRUCTURING CHARGE AND THE BANKING COMPANY HAS BEEN REDUCING NONPERFORMING LOANS FOR TWO YEARS THE COMPANY HAS 136 BILLION IN ASSETS AND 258 OFFICES IN NEW JERSEY AND EASTERN PENNSYLVANIA 9312160149 931216 MCDONNELL PUT ON PROBATION BY PENTAGON US UNVEILS PLAN FOR C17 THAT INCLUDES PENALTIES BUT ALSO HAS INCENTIVES BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TOP PENTAGON OFFICIALS PUT THE US'S LARGEST DEFENSE CONTRACTOR ON WHAT THEY CALLED HEAVY PROBATION AND VOWED TO CANCEL MCDONNELL DOUGLAS CORP'S C17 CARGO JET PROGRAM IF THE COMPANY DOESN'T STRAIGHTEN UP AND FLY RIGHT UNVEILING A CARROTANDSTICK PACKAGE THAT COMBINES MULTIBILLION DOLLAR INCENTIVES WITH SEVERE PENALTIES DEFENSE SECRETARY LES ASPIN SAID HE WOULD TERMINATE THE PROGRAM AT 40 JETS WHICH WOULD MEAN ACQUIRING JUST 12 MORE IF MCDONNELL DOUGLAS FAILS TO MEET DELIVERY SCHEDULES QUALITY GOALS AND COST TARGETS BUT IF THE COMPANY SUCCEEDS HE SAID HE WOULD CONSIDER BUYING AN ADDITONAL 80 C17S AT A COST OF MORE THAN 300 MILLION APIECE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MCDONNELL DOUGLAS CLOSED AT 10950 DOWN 25 CENTS THE MOVEMENT WASN'T LARGE PARTLY BECAUSE DETAILS OF THE C17 PLAN WERE REPORTED IN OCTOBER AFTER JOHN DEUTCH THE PENTAGON'S ACQUISITION CHIEF TOOK IT TO CAPITOL HILL DEFENSE OFFICIALS HAVE SAID PRIVATELY THAT THIS FLEXIBLE MARKETBASED APPROACH IS A MODEL OF HOW THEY INTEND TO RESOLVE STICKY ACQUISITION PROBLEMS IN THE FUTURE IN THEIR VIEW IT IS CRUCIAL ESPECIALLY AS THE DEFENSE INDUSTRY DWINDLES TO JUST ONE OR TWO PRODUCERS IN SUCH KEY SECTORS AS TANKS SUBMARINES AND MILITARY CARGO JETS TO ENSURE THAT THE PENTAGON HAS ALTERNATIVES AVAILABLE WHEN A DEFENSE CONTRACTOR FAILS TO MEET ITS OBLIGATIONS IF THE PLAN WORKS IT WOULD RESOLVE THE PENTAGON'S LONGESTRUNNING AND MOSTNETTLESOME ACQUISITION PROBLEM WITH THE C17 OVER COST BEHIND SCHEDULE AND FAILING TO MEET SPECIFICATIONS CANCELING THE PROGRAM WAS VERY TEMPTING MR ASPIN SAID AT A NEWS CONFERENCE A FEW HOURS BEFORE HE ANNOUNCED HIS RESIGNATION AS SECRETARY OF DEFENSE INSTEAD MR ASPIN SAID HE HAD DECIDED ON A PLAN THAT GIVES US THE OPPORTUNITY TO FIX THE C17 BUT DOESN'T HOLD US HOSTAGE TO THE C17 IF PENTAGON OFFICIALS DECIDE AFTER TWO YEARS THAT MCDONNELL DOUGLAS HAS FAILED THEY WILL FILL THEIR REMAINING AIRLIFT NEEDS BY ACQUIRING EITHER LOCKHEED CORP C5BS OR COMMERCIAL WIDEBODY FREIGHTERS HE SAID THIS IS A HEAVY PROBATION PERIOD ADDED MR DEUTCH AS PART OF THE COMPREHENSIVE PLAN TO RESOLVE THE C17'S PROBLEMS MR DEUTCH SAID HE HAD OFFERED TUESDAY TO SETTLE THE COMPANY'S CLAIMS AGAINST THE GOVERNMENT WITH A COMPLEX SERIES OF PAYMENTS IN RETURN FOR HAVING MCDONNELL DOUGLAS DROP ABOUT 12 BILLION IN CLAIMS FOR CONTRACTUAL CHANGES THAT IT ARGUES INCREASED ITS COSTS THE PENTAGON WOULD PAY IT 237 MILLION AND THEN SPEND AN ADDITIONAL 111 MILLION TO IMPROVE THE C17 PROGRAM THE COMPANY ITSELF WOULD BE REQUIRED TO SPEND 456 MILLION ON FLIGHT TESTING AND IMPROVING THE MANAGEMENT OF THE PROGRAM MR DEUTCH SAID HE HAS GIVEN THE COMPANY UNTIL THE END OF THIS WEEK TO RESPOND TO THE OFFER ESSENTIALLY IT IS AN OFFER MCDONNELL DOUGLAS CAN'T REFUSE REJECTION BY THE COMPANY WOULD MEAN TRIGGER AN IMMEDIATE PENTAGON DECISION TO TERMINATE THE C17 PROGRAM AT 40 AIRCRAFT MR DEUTCH INDICATED BUT HE SAID HE EXPECTS THE OFFER TO BE ACCEPTED A MCDONNELL DOUGLAS SPOKESMAN SAID ONLY THAT THE COMPANY HAD RECEIVED THE PENTAGON PROPOSAL AND WE ARE STUDYING IT WE EXPECT TO REPLY TO THE DEPARTMENT PROMPTLY BUT WITHIN MCDONNELL DOUGLAS SOME MANAGERS ARE KNOWN BE RELIEVED AT THE OUTCOME DESPITE THE LARGE OVERALL VALUE OF CLAIMS THE COMPANY HAD FILED TO THE GOVERNMENT OR PREPARED FOR SUBMISSION WHICH TOPPED 155 BILLION IN ALL SOME MANAGERS HADN'T EXPECTED MUCH REPAYMENT INTERNALLY COMPANY OFFICIALS HAVE SUGGESTED THE PERFORMANCE TARGETS LAID OUT BY THE PENTAGON AREN'T A PROBLEM FINALLY MR DEUTCH SAID HE WOULD MAKE IT SOMEWHAT EASIER FOR THE COMPANY TO MEET ITS PERFORMANCE AND COST TARGETS BY EASING THE C17'S RANGE/PAYLOAD REQUIREMENT THAT IS HOW FAR IT CAN CARRY A GIVEN CARGO HE SAID THE JOINT CHIEFS OF STAFF HAD REVIEWED THIS EASING AND DECIDED THE C17 COULD STILL MEET ITS REQUIREMENT TO FLY TANKS AND OTHER ARMORED VEHICLES LONG DISTANCES AND THEN LAND ON SHORT RUNWAYS IN ADDITION TO THE COMPANY'S AGREEMENT THE ENTIRE PACKAGE THE ACQUISITION PLAN THE SETTLEMENT OF CLAIMS AND THE EASING OF THE RANGE/PAYLOAD REQUIREMENT REMAINS SUBJECT TO CONGRESSIONAL APPROVAL THAT APPEARS TO BE A GIVEN ESPECIALLY BECAUSE MR DEUTCH GOT A WARM RECEPTION WHEN HE BRIEFED MEMBERS OF CONGRESS ON THE PLAN SEVEN WEEKS AGO EVEN REP JOHN CONYERS D MICH WHO IS CHAIRMAN OF THE HOUSE GOVERNMENT OPERATIONS COMMITTEE AND THE TOUGHEST CRITIC OF THE C17 GAVE GRUDGING APPROVAL TO THE PLAN YESTERDAY 9312160148 931216 POLITICS & PEOPLE CLINTON'S HIGHSTAKES CHINA GAMBIT BY ALBERT R HUNT PRESIDENT CLINTON IS TRYING TO REVERSE TWO CHINA POLICIES GEORGE BUSH'S AND CANDIDATE CLINTON'S SPECIFICALLY THE CLINTON ADMINISTRATION INCREASINGLY CONVINCED THAT CHINA IS BECOMING OUR MOST IMPORTANT AND VEXING BILATERAL RELATIONSHIP IS TRYING TO BACK OFF THE DEMOCRATIC NOMINEE'S INSISTENCE LAST YEAR THAT ECONOMIC RELATIONS ARE INEXORABLY LINKED WITH HUMAN RIGHTS AT THE SAME TIME HOWEVER THE PRESIDENT DOES NOT WANT TO RETURN TO THE DAYS OF GEORGE BUSH WHEN HUMAN RIGHTS WERE RELEGATED TO THE BACK BURNER THIS TRICKY STRATEGY WILL BE WAGED IN TWO STAGES FIRST THE PRESIDENT HAS UNTIL JUNE TO DECIDE WHETHER CHINA HAS MADE ENOUGH SIGNIFICANT PROGRESS ON HUMAN RIGHTS TO JUSTIFY THE US EXTENDING MOSTFAVOREDNATION OR MFN TARIFF TREATMENT AFTER AND IF THAT HURDLE IS CLEARED THE ADMINISTRATION WANTS TO DELINK THE HUMAN RIGHTS ISSUE FROM MFN TOP ADVISERS SAY THAT THE PRESIDENT STRONGLY ENCOURAGED BY SECRETARY OF STATE WARREN CHRISTOPHER NOW CONSIDERS ASIA HIS TOP FOREIGN POLICY PRIORITY HE HAS A PERSONAL STAKE IN THE SUCCESS OF ASIANPACIFIC ECONOMIC COOPERATION AFTER HE LAUNCHED LAST MONTH'S SEATTLE SESSION ON CHINA HE IS SAID TO BELIEVE A GOOD ECONOMIC RELATIONSHIP IS ESSENTIAL TO US ECONOMIC GROWTH IN THE DECADES AHEAD DESPITE HIS NOTALTOGETHERFRIENDLY SESSION WITH CHINESE PRESIDENT JIANG ZEMIN IN SEATTLE HE BELIEVES THAT THE HUMAN RIGHTS QUESTION ISN'T INSURMOUNTABLE IT'S HARD TO EXAGGERATE THE ECONOMIC STAKES TRADE WITH CHINA OVER THE PAST DECADE HAS SURGED NINEFOLD AND US COMPANIES HAVE INVESTED MORE THAN 6 BILLION THERE AS THE 21ST CENTURY ARRIVES NOTES SEN BILL BRADLEY D NJ THE MAJOR ECONOMIC POWERS MAY BE CHINA AND THE US WITH JAPAN TO A SLIGHTLY LESSER EXTENT IN AN OVAL OFFICE INTERVIEW YESTERDAY WHEN ASKED ABOUT HIS FOREIGN POLICY PRIORITIES FOR NEXT YEAR THE PRESIDENT QUICKLY TALKED ABOUT THE NEED TO ELEVATE GLOBAL ECONOMIC ISSUES TO A CENTRAL PLACE IN FOREIGN POLICY READ THAT TO MEAN ASIA PARTICULARLY CHINA AND JAPAN AND THE ADMINISTRATION IS REASONABLY OPTIMISTIC ABOUT HOW CHINA WILL FARE AFTER THE DEMISE OF DENG XIAOPING NOW 89 YEARS OLD RATHER THAN FORESEEING ECONOMIC CHAOS OR POLITICAL DISINTEGRATION THE ADMINISTRATION GENERALLY EXPECTS CHINA TO REMAIN POLITICALLY INTACT AND ACHIEVE A PRETTY SMOOTH ECONOMIC LANDING TO AN 8 OR 9 GROWTH RATE WITHOUT ANY SERIOUS NEW SURGE OF INFLATION BUT THAT DOESN'T RESOLVE THE MFNHUMAN RIGHTS FIGHT THAT STARTED AFTER THE TIANANMEN SQUARE MASSACRE MOST AMERICANS WERE OUTRAGED BUT GEORGE BUSH DID NOTHING CONGRESS HAS TRIED TO USE THIS AS A LEVER LAST YEAR BILL CLINTON ENGINEERED AN EXECUTIVE ORDER THAT GAVE THE CHINESE UNTIL NEXT JUNE 3 TO MAKE SIGNIFICANT PROGRESS ON HUMAN RIGHTS LAST MONTH THE PRESIDENT CALLED IN SOME CHINA EXPERTS ALL OF WHOM SAID GREATER ECONOMIC TIES WITH CHINA MEANT ENDING THIS ANNUAL FIGHT OVER MFN IN THE SHORT RUN UNFORTUNATELY MAJOR PLAYERS ON BOTH SIDES MAY BE MISREADING NEXT YEAR'S POLITICS SOME CHINESE LEADERS THINK THEIR MARKET IS SO POTENTIALLY IMPORTANT TO THE US THAT WE NEVER WOULD JEOPARDIZE IT SAYS TRADE EXPERT C FRED BERGSTEN AND MANY OF THE HUMAN RIGHTS ADVOCATES HERE THINK THAT OUR PURCHASE OF CHINA'S GOODS AND THE FINANCIAL FLOW ARE SO IMPORTANT TO THEM THAT EVENTUALLY THEY'LL KOWTOW TO US THAT SETS UP A DANGEROUS GAME OF POLITICAL CHICKEN MOST EXPERTS ARE CONVINCED THAT IF PUSHED TOO HARD CHINA WILL NOT BUCKLE BUT IT'S EQUALLY TRUE THAT MOST AMERICANS ARE DEAD SET AGAINST ANY CAPITULATION ON HUMAN RIGHTS THE CLINTON ADMINISTRATION HAS NO INTENTION OF GETTING INTO A VETO BATTLE ON THIS WITH CONGRESS PRIVATELY ADMINISTRATION OFFICIALS COMPLAIN THAT SOME AMERICAN BUSINESSMEN ARE MISLEADING THE CHINESE INTO THINKING THE PRESIDENT CAN CONTROL THIS SITUATION LAST MONTH 270 HOUSE MEMBERS PROMINENT REPUBLICANS AS WELL AS DEMOCRATS POINTEDLY WARNED MR CLINTON THAT THE CHINESE WEREN'T LIVING UP TO NECESSARY HUMAN RIGHTS STANDARDS A BASIC RESPECT FOR HUMAN RIGHTS IS CENTRAL TO THE AMERICAN POLITICAL CULTURE THE LATEST WALL STREET JOURNAL/NBC NEWS POLL SHOWS THAT THE PUBLIC BY A RATIO OF MORE THAN 2 TO 1 SAYS ECONOMIC TIES WITH CHINA SHOULD HINGE ON IMPROVED HUMAN RIGHTS IN THE SAME SURVEY WHEN ASKED WHICH IS THE US'S MOST IMPORTANT FOREIGN POLICY RELATIONSHIP OVER THE NEXT FIVE YEARS 23 SAID CHINA TYING IT WITH THE MIDDLE EAST AND AHEAD OF RUSSIA JAPAN AND LATIN AMERICA THE CHINESE RECORD ON HUMAN RIGHTS RECENTLY HAS BEEN MIXED WITH CHINA'S POSSIBLY ALLOWING RED CROSS VISITS TO PRISONS OFFSET BY MORE CRACKDOWNS IN TIBET AND CONTINUED INCARCERATION OF TIANANMEN SQUARE PROTESTERS IN SEATTLE MR CLINTON STUDIOUSLY AVOIDED ANY SERIATIM LIST OF MOVES THAT HAD TO BE TAKEN BUT IF THE CHINESE DON'T DO BETTER OVER THE NEXT SIX MONTHS THE PRESIDENT'S HANDS ARE TIED IF CHINA DOES GET SMART THOUGH AND THE CURRENT MFN SHOWDOWN IS FINESSED THERE'S A BETTER THAN EVEN CHANCE THE ADMINISTRATION CAN END WHAT THE CHINESE CONSIDER ANNUAL EFFORTS TO HUMILIATE THEM BUT THAT DOESN'T MEAN THAT THE HUMAN RIGHTS ISSUE WILL BE SUBORDINATED AS IN THE BUSH DAYS EVEN WITHOUT LINKAGE TO MFN THE PRESIDENT CAN AND SHOULD USE THE BULLY PULPIT TO RALLY WORLD OPINION AGAINST CHINA'S HUMAN RIGHTS ABUSES BEIJING BARELY LOST THE 2000 OLYMPICS THE US SHOULD TAKE A MORE ACTIVE ROLE IN INSISTING THAT THE 2004 OLYMPICS GO TO CHINA ONLY IF IT MEETS MINIMAL HUMAN RIGHTS CONDITIONS AND AS SEN BRADLEY SAYS THERE WILL BE OTHER SELECTED AREAS OF OPPORTUNITY TO MAKE THE CASE A KEY IN THOSE DELICATE DEALINGS COULD BE MR CHRISTOPHER WHO HAS BEEN CRITICIZED FOR LACKING VISION AND BRINGING A LEGALISTIC APPROACH TO FOREIGN POLICY BUT HE'S TOLD COLLEAGUES THAT CHINA IS HIS TOP CONCERN FOR 1994 AND HE MAY BE IDEALLY SUITED FOR WHAT PROMISES TO BE INSCRUTABLE NEGOTIATIONS ON THE THORNY ARMSEXPORTS ISSUE AS WELL AS ECONOMICS AND HUMAN RIGHTS LAST WEEK WHEN MR CHRISTOPHER WAS SHUTTLING AROUND THE MIDDLE EAST AND EUROPE HE NEVERTHELESS FOUND TIME TO WRITE A LENGTHY LETTER TO THE CHINESE FOREIGN MINISTER 9312160147 931216 CORPORATE FOCUS GM'S SATURN UNIT SHIFTS GEARS AMID SALES SLOWDOWN PRODUCTION TO HALT FOR WEEK PROMOTIONS TO FOCUS ON CUTRATE LEASES BY OSCAR SURIS AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT SATURN GENERAL MOTORS CORP'S ONCE HIGHFLYING SMALLCAR DIVISION IS COMING DOWN TO EARTH SADDLED WITH A HEFTY 78DAY SUPPLY OF CARS SATURN WILL HALT PRODUCTION AT ITS HUGE SPRING HILL TENN FACTORY FOR A WEEK IN JANUARY THE FIRST TIME THE SUBSIDIARY HAS CUT SCHEDULED PRODUCTION AND THIS WEEKEND SATURN WILL LAUNCH ITS FIRST CUTRATE LEASE PROGRAM ADVERTISING PAYMENTS AS LOW AS 191 A MONTH FOR A BASE SATURN SEDAN FOR THE PAST THREE YEARS SATURN HAS PRIDED ITSELF ON AVOIDING SUCH PROMOTIONS SATURN'S PRODUCTION CUT AND ITS SHIFT TOWARD MORE TRADITIONAL PRICEORIENTED MARKETING COME AT A TIME WHEN THE SMALLCAR MARKET IS ABOUT TO GET EVEN MORE CROWDED AND COMPETITIVE NEXT MONTH CHRYSLER CORP WILL LAUNCH ITS NEW NEON SUBCOMPACT STRAIGHT AT SATURN AND SUCH JAPANESE MODELS AS THE TOYOTA COROLLA AND HONDA CIVIC NEXT FALL GM WILL CRANK UP PRODUCTION OF THE REPLACEMENTS FOR ITS AGING CHEVROLET CAVALIER AND PONTIAC SUNBIRD COMPACTS WITH AMBITIONS TO SELL MORE THAN 400000 A YEAR MEANWHILE AVERAGE SALES OF SATURN'S THREEYEAROLD SEDANS AND COUPES DURING THE PAST FOUR MONTHS FELL 36 SHORT OF PRODUCTION SATURN SALES AVERAGED ABOUT 17500 CARS A MONTH SINCE BETWEEN AUG 1 AND NOV 30 WHILE PRODUCTION AVERAGED 27357 VEHICLES A MONTH THE OVERPRODUCTION SOME OF IT AT OVERTIME RATES COINCIDED WITH SATURN'S SCRAMBLE TO BREAK EVEN FOR 1993 AND FULFILL A PROMISE TO GM'S BOARD AND PRESIDENT JOHN F SMITH JR A SATURN SPOKESMAN SAID YESTERDAY THE SUBSIDIARY IS ON TRACK TO BE AT A BREAKEVEN LEVEL OR MARGINALLY PROFITABLE FOR THIS YEAR BARRING UNFORESEEN SETBACKS HOWEVER IT'S NOT CLEAR WHETHER SATURN COULD HAVE ACHIEVED BREAKEVEN PERFORMANCE THIS YEAR HAD IT MOVED SOONER TO CUT PRODUCTION TO MATCH RETAIL SALES SATURN EARNS REVENUE WHEN IT PRODUCES AND SELLS CARS TO DEALERS DEALERS THEN RECOUP PAYMENTS TO SATURN FROM SALES TO CONSUMERS A SENIOR SATURN EXECUTIVE YESTERDAY BLAMED THE SALES SHORTFALL ON THE UNIT'S DECISION TO CUT BACK SHARPLY ON ADVERTISING DURING THE SUMMER AND TO DELAY OPENING SEVERAL NEW DEALERSHIPS SATURN PULLED BACK ON ADVERTISING EARLY IN THE YEAR AT A TIME WHEN THE SUPPLY OF VEHICLES WAS LOW BUT SATURN PLANS TO SUBSTANTIALLY INCREASE ADVERTISING NEXT YEAR AS IT OPENS MORE DEALERSHIPS SAID DONALD HUDLER SATURN'S VICE PRESIDENT FOR SALES AND MARKETING WE FEEL PRETTY GOOD ABOUT THINGS GOING INTO 1994 HE SAID STILL SATURN'S SALES SLOWDOWN COMES AT A PARTICULARLY AWKWARD TIME FOR THE SUBSIDIARY AND GM EXECUTIVES WHO ARE DEBATING WHETHER TO BUILD THE SECOND ASSEMBLY PLANT SATURN SAYS IT NEEDS TO BECOME CONSISTENTLY PROFITABLE MR SMITH SAID LAST MONTH HE EXPECTED A DECISION ON A SECOND SATURN PLANT BY THE END OF THIS YEAR BUT MR HUDLER SAID YESTERDAY SATURN EXECUTIVES STILL ARE EVALUATING SEVERAL SITES AND HAVEN'T FINISHED A FORMAL PROPOSAL FOR A SECOND PLANT TO TAKE TO MR SMITH OR GM'S BOARD OF DIRECTORS THE RECENT SALES SLOWDOWN IS TOTALLY UNRELATED TO THE ISSUE OF WHETHER SATURN NEEDS A SECOND FACTORY TO BUILD ADDITIONAL MODELS OR TO PRODUCE VEHICLES FOR EXPORT HE SAID HOWEVER SENIOR GM EXECUTIVES INCLUDING E MICHAEL MUTCHLER THE GROUP VICE PRESIDENT IN CHARGE OF GM'S DOMESTIC CAR OPERATIONS HAVE SAID IN THE PAST THAT SATURN MUST PROVE IT CONSISTENTLY CAN SELL OUT THE HUGE 19 BILLION MANUFACTURING FACILITY IT ALREADY HAS BEFORE GM INVESTS HUNDREDS OF MILLIONS OF DOLLARS IN A NEW FACTORY SATURN DEALERS CONTACTED YESTERDAY SAID SATURN MAY HAVE STAYED FOR TOO LONG WITH A LOWKEY MARKETING CAMPAIGN THAT STRESSED FRIENDLY SALES AND SERVICE INSTEAD OF RESPONDING TO RIVALS' PROMOTIONS OF LOW PRICES MOREOVER SATURN MAY HAVE UNDERESTIMATED THE IMPACTS OF HEFTY PRICE INCREASES THIS FALL AND A WIDELY PUBLICIZED RECALL LAST AUGUST OF NEARLY 353000 SATURNS FOR A DEFECT LINKED TO 34 ENGINE FIRES WE FELL OFF OF SOME PEOPLE'S SHOPPING LISTS SAID JOHN CAMPBELL OWNER OF SATURN DEALERSHIP IN SANTA ANA CALIF ALL THEY HEARD FOR A WHILE WAS ABOUT OUR RECALL SO I THINK YOU ARE GOING TO SEE A MUCH HEAVIER ADVERTISING SCHEDULE NEXT YEAR FROM US MR HUDLER SAID SATURN THIS WEEKEND WILL START PROMOTING THREEYEAR LEASES WITH PAYMENTS AS LOW AS 191 A MONTH FOR A BASE SL SEDAN AND 199 A MONTH FOR A BETTEREQUIPPED SL1 SEDAN MR HUDLER SAID THE RATES REFLECT SATURN'S HIGH RESALE VALUE NOT A SUBSIDIZED PRICE SATURN EXECUTIVES DECIDED LAST WEEK TO CUT A WEEK'S WORTH OF PRODUCTION AT SPRING HILL BY EXTENDING THE CHRISTMAS HOLIDAY BY A WEEK A SPOKESMAN SAID HE CONFIRMED THE HIATUS IS DUE IN PART TO THE UNIT'S HIGH INVENTORIES BUT ADDED THAT THE UNIT WILL USE THE TIME TO ACCOMPLISH SOME RETOOLING FOR 1995 MODELS ORIGINALLY SCHEDULED FOR NEXT SUMMER 9312160146 931216 IRS SEEKS TO IMPOSE TIGHTER DEFINITION OF OUTSIDE DIRECTOR BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE PROPOSED REGULATIONS THAT WOULD TIGHTLY RESTRICT THE DEFINITION OF THE OUTSIDE DIRECTORS WHO DETERMINE WHETHER EXECUTIVE COMPENSATION IS DEDUCTIBLE UNDER THE TAX LAW PASSED BY CONGRESS EARLIER THIS YEAR COMPANIES AREN'T ALLOWED DEDUCTIONS FOR COMPENSATION ABOVE 1 MILLION UNLESS THOSE PAYMENTS ARE TIED TO AN EXECUTIVE'S PERFORMANCE PERFORMANCE STANDARDS MUST BE SET BY A SPECIAL COMMITTEE CONSISTING OF TWO OR MORE OUTSIDE DIRECTORS AND AFTER SHAREHOLDERS APPROVE THOSE GOALS THE PANEL MUST CERTIFY THAT THE EXECUTIVE HAS MET THEM THE PROPOSED IRS RULES WHICH ARE LIKELY TO UPSET SOME MEMBERS OF THE BUSINESS COMMUNITY DEFINE AN OUTSIDE DIRECTOR MORE STRICTLY THAN THE SECURITIES AND EXCHANGE COMMISSION DOES ACCORDING TO THE IRS SOMEONE COULDN'T BE ON THE GUIDELINES COMMITTEE IF THE CORPORATION PAYS THEM OR THEIR COMPANY THE LESSER OF 60000 OR 5 OF THEIR TOTAL RECEIPTS THE INTENT IS TO KEEP OUTSIDERS THAT PROVIDE SERVICES TO THE COMPANY INCLUDING ACCOUNTANTS LAWYERS AND MAJOR SUPPLIERS OFF THE COMMITTEE MOREOVER FORMER OFFICERS OF THE CORPORATION COULDN'T BE ON THE PANEL PENSION FUND REPRESENTATIVES AND OTHER MAJOR INVESTORS COULD BE ON THE COMMITTEE BUT NOT IF THEY ARE BEING PAID AS CONSULTANTS THAT'S A MISTAKE BECAUSE IT WOULD EXCLUDE FROM THE PROCESS SOME OF THE MOST KNOWLEDGEABLE SHAREHOLDER REPRESENTATIVES SAID CLINT STRETCH TAX DIRECTOR AT DELOITTE & TOUCHE SOME COMPANIES HAVE ALSO EXPRESSED CONCERN THAT THEY WILL HAVE TO RECRUIT NEW OUTSIDE DIRECTORS TO MEET THE REGULATIONS EVEN AS THE RULES WERE BEING DEVELOPED THEY CRITICIZED THE GOVERNMENT'S APPROACH FOR BEING OVERLY BURDENSOME WE HAVE DEFINED OUTSIDE DIRECTORS FAIRLY SPECIFICALLY WHICH IS CONSISTENT WITH THE LEGISLATION SAID A TREASURY DEPARTMENT OFFICIAL SOME COMPANIES HAVE WONDERED WHY SHOULD WE CREATE THIS NEW CLASS OF DIRECTORS OUR FEELING WAS THE STATUTE IS CLEAR THE NEW RULES ARE SLATED TO TAKE EFFECT JAN 1 TO HELP EASE THE TRANSITION THE IRS PROPOSED THAT THE NEW OUTSIDE DIRECTOR DEFINITION WOULDN'T KICK IN UNTIL A COMPANY'S FIRST SHAREHOLDER VOTE AFTER JULY 1 THE EXECUTIVECOMPENSATION RULES HAVE BEEN EAGERLY AWAITED AS CORPORATIONS PREPARE TO SEND PROXY MATERIAL TO THEIR SHAREHOLDERS EARLY NEXT YEAR THE IRS HASN'T SCHEDULED A PUBLIC HEARING ON THE NEW RULES BUT IT IS EXPECTED TO DO SO SHORTLY 9312160145 931216 WHO'S NEWS DILLON READ NAMES FRANKLIN HOBBS ITS CHIEF EXECUTIVE BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CAPPING A TWOYEAROLD PUSH INTO NEW BUSINESSES BROKERAGE FIRM DILLON READ & CO NAMED ITS PRESIDENT FRANKLIN W HOBBS TO THE ADDED POST OF CHIEF EXECUTIVE OFFICER DILLON ALSO ANNOUNCED THAT 1993 WOULD BE THE PRIVATE PARTNERSHIP'S MOST PROFITABLE YEAR SINCE ITS FOUNDING IN 1832 IN HIS NEW POSITION MR HOBBS 46 YEARS OLD WILL BE RESPONSIBLE FOR RUNNING THE DAYTODAY OPERATIONS OF THE FIRM THE CEO POSITION HAD BEEN HELD BY DILLON'S CHAIRMAN JOHN BIRKELUND 63 WHO REMAINS CHAIRMAN AND CEO OF DILLON READ HOLDING INC THE PARENT COMPANY MR BIRKELUND SAID HE WILL CONTINUE TO OVERSEE THE ASSETMANAGEMENT OPERATIONS OF THE BROKERAGE HOUSE FRANCOIS DE SAINT PHALLE 47 VICE CHAIRMAN OF THE BROKERAGE FIRM BECOMES CHIEF OPERATING OFFICER A POSITION PREVIOUSLY HELD BY MR HOBBS DILLON ONE OF THE BROKERAGE INDUSTRY'S FEW REMAINING PRIVATE PARTNERSHIPS HAS A REPUTATION AS A QUIET TONY BANKER SPECIALIZING IN PUBLIC FINANCE AND IN ADVISORY WORK TO BLUECHIP CLIENTS BUT IN THE PAST TWO TO THREE YEARS DILLON HAS ADDED A 10PERSON RETAIL DIVISION CATERING TO HIGHNETWORTH INDIVIDUALS HAS EXPANDED REGIONAL OFFICES AND STARTED A SMALL DERIVATIVES OPERATION WHILE REVENUES FOR THE ENTIRE WALL STREET INDUSTRY HAVE BEEN STRONG THIS YEAR DILLON'S BOTTOM LINE HAS BEEN BOOSTED BY A CAMPAIGN TO ATTRACT WEALTHY INDIVIDUALS AS CLIENTS SAID MR BIRKELUND ALSO WE'VE HAD A TERRIFIC YEAR IN THE MERGERS BUSINESS HE SAID WITH STRONG BUSINESS BOTH IN ADVISORY WORK AND MERGERRELATED CORPORATE FINANCE MR HOBBS SAID HE PLANS FEW CHANGES IN DILLON'S IMAGE OR BUSINESS WE'VE CREATED A UNIQUE FRANCHISE WE'RE THE LAST INVESTMENT BANKER HE SAID DILLON ESCHEWS MOVES NOW COMMON AT FINANCIAL POWERHOUSES PROPRIETARY TRADING ASIAN EXPANSION OR A SIZABLE RETAIL BUSINESS SAYS MR HOBBS WE'VE KEPT A LOW PROFILE BY DESIGN IN 1986 DILLON WAS ACQUIRED BY INSURER TRAVELERS CORP NOW A UNIT OF PRIMERICA CORP BUT IN 1991 DILLON READ BECAME 60 OWNED BY MANAGEMENT AND 40 BY BRITISH MERCHANT BANKER BARING BROTHERS PLC IN A 122 MILLION BUYOUT ANNUALLY DILLON AVERAGES A 25 RETURN ON EQUITY THE COMPANY SAID 9312160144 931216 COMPAQ SETTLES TRADE DISPUTE HOUSTON COMPAQ COMPUTER CORP SAID IT SETTLED A TRADEMARK DISPUTE WITH A SMALL COMPANY CALLED COMPAC MICROELECTRONICS INC COMPAQ A LARGE MAKER OF PERSONAL COMPUTERS SAID IT SUED COMPAC OVER THE FREMONT CALIF COMPANY'S PLAN TO CONSIDER SELLING A LINE OF PCS USING COMPAC AS A BRAND NAME UNDER THE SETTLEMENT COMPAC WILL STOP USING THE NAME COMPAC BY THE END OF THIS YEAR AND WILL CHANGE ITS NAME TO SYNNEX INFORMATION TECHNOLOGIES INC OTHER TERMS OF THE SETTLEMENT WEREN'T DISCLOSED 9312160143 931216 FINANCING BUSINESS PENN TRAFFIC CO PENN TRAFFIC CO SYRACUSE NY SAID IT PLANS TO ISSUE 200 MILLION PRINCIPAL AMOUNT OF 8 5/8 SENIOR NOTES DUE 2003 IN A PUBLIC OFFERING THE COMPANY SAID THE PROPOSED OFFERING WILL BE UNDERWRITTEN BY GOLDMAN SACHS & CO AND BT SECURITIES CORP PENN TRAFFIC SAID THE NOTES WILL BE OFFERED PURSUANT TO A SHELFREGISTRATION STATEMENT RELATING TO AS MUCH AS 400 MILLION PRINCIPAL AMOUNT OF NEW DEBT SECURITIES THE FOOD RETAILER AND GENERALMERCHANDISE CONCERN SAID PROCEEDS OF THE OFFERING WOULD BE USED TO REPAY REDEEM OR REPURCHASE CERTAIN DEBTS OUTSTANDING OF THE COMPANY AND FOR GENERAL CORPORATE PURPOSES 9312160142 931216 HOME WORK I'M STILL HERE HOME WORKERS WORRY THEY'RE INVISIBLE BY SUE SHELLENBARGER STAFF REPORTER OF THE WALL STREET JOURNAL OUT OF SIGHT OUT OF MIND IT IS AN ADAGE THAT HAUNTS MANY TELECOMMUTING EMPLOYEES INDEED LOSING VISIBILITY AND CAREER MOMENTUM WAS THE MOST OFTVOICED CONCERN AMONG TELECOMMUTERS IN A 25EMPLOYER DEMONSTRATION PROJECT IN THE PUGET SOUND REGION OF WASHINGTON SAYS DAVID SPAIN A UNIVERSITY OF WASHINGTON ANTHROPOLOGY PROFESSOR WORRIED ABOUT FALLING OFF THE FAST TRACK TELECOMMUTING EMPLOYEES AT BELL ATLANTIC CORP VIDEOTAPED THEIR HOME OFFICES AND SHOWED THE TAPES TO THEIR BOSSES THEIR MESSAGE ACCORDING TO ED KIRK BELL ATLANTIC'S MANAGER OF TELECOMMUTING WAS I HAVE A BETTER PC AT HOME THAN YOU DO MR KIRK ADDS THAT SOME TELECOMMUTERS ARE AFRAID TO GO TO THE BATHROOM FOR FEAR OF MISSING A PHONE CALL TELECOMMUTERS' CAREER ANXIETIES ARE AT LEAST PARTLY UNFOUNDED A STUDY BY JOANNE H PRATT ASSOCIATES A DALLAS CONSULTANT FOR THE SMALL BUSINESS ADMINISTRATION FOUND THAT TELECOMMUTERS RECEIVE PROMOTIONS AT A FASTER RATE THAN NONTELECOMMUTERS THAT MAY BE PARTLY BECAUSE THE EARLY TELECOMMUTERS IN HER ANALYSIS OF 1988 AND 1989 LABOR DEPARTMENT DATA WERE MANAGERS OR TOP SALESPEOPLE WHO WERE ALREADY HIGH PERFORMERS OUR BEST PEOPLE MS PRATT SAYS WHATEVER THE CASE MANAGERS AND EMPLOYEES ALIKE BELIEVE THAT IT'S HARDER FOR TELECOMMUTERS TO GET PROMOTED SAYS JERRY SANTOS A PUBLIC RELATIONS DIRECTOR FOR AMERICAN TELEPHONE & TELEGRAPH CO WHO SUPERVISES SEVERAL TELECOMMUTERS DOWNSIZING HAS RAISED THE STAKES A TELECOMMUTER WHO IS DELIVERING OUTSTANDING RESULTS FROM HOME MAY STILL FEEL MORE VULNERABLE BECAUSE HE OR SHE ISN'T NETWORKING IN THE COMPANY SAYS JOHN SCOTT AREA MANAGER FOR WORKSITE ALTERNATIVES AT U S WEST INC INDEED ANYONE TOO WRAPPED UP IN DREAMS OF ADVANCEMENT IS PROBABLY ILLSUITED FOR TELECOMMUTING SAYS GIL GORDON A MONMOUTH JUNCTION NJ TELECOMMUTING CONSULTANT IF THEIR ULTIMATE GOAL IS TO MOVE UP AS LONG AND AS FAR AS POSSIBLE THEY WILL SPEND MORE TIME AT HOME OBSESSING ABOUT NOT RUBBING ELBOWS WITH THE VP IN THE LUNCH LINE THEIR WORK WILL SUFFER AND THEIR WORRIES WILL BE SELFFULFILLING HE SAYS FOR THOSE READY TO TAKE THAT RISK EXPERIENCED TELECOMMUTERS OFFER SEVERAL REMEDIES FOR INVISIBILITY FIRST MAKE SURE YOUR WORK AT HOME DELIVERS SIGNIFICANT BENEFITS TO THE BOSS AND THE BUSINESS SECOND STAY FLEXIBLE THIRD CULTIVATE YOUR BOSS'S ACTIVE SUPPORT FOR YOUR ARRANGEMENT AND FINALLY COMMUNICATE COMMUNICATE COMMUNICATE A SUCCESSFUL TELECOMMUTER FOCUSES AS MUCH ON BENEFITING THE BUSINESS AS ON ACHIEVING A DESIRED LIFESTYLE BEVERLY PHILLIPS A U S WEST INC SYSTEMS ANALYST WHO HAS TELECOMMUTED FROM HER BAINBRIDGE ISLAND WASH HOME FOR 10 YEARS ANSWERS THE PHONE DAY AND NIGHT QUICKENING HER RESPONSE TIME TO TROUBLE CALLS YOU CAN'T BE AN 8TO5 SORT OF PERSON IF I MINDED BEING CALLED AT HOME OR ON THE WEEKEND THIS WOULD BE UNTENABLE SHE SAYS ADVANCING FROM HOME ALSO REQUIRES AN UNUSUALLY SUPPORTIVE BOSS WHEN LENORA VESIO AN AT&T DISTRICT MANAGER IN PUBLIC RELATIONS WHO WORKS FOR MR SANTOS FROM HER HOME IN PITTSBURGH ATTENDED AN INTERNAL CONFERENCE THE SENIOR VICE PRESIDENT IN HER DIVISION ASKED ME IF I'M WORKING TOO MUCH SHE TOLD ME I SEE YOUR NAME ON MY DESK ALL THE TIME' THAT'S BECAUSE MR SANTOS KEEPS MY NAME ON HER DESK ALL THE TIME MS VESIO SAYS MR SANTOS SAYS HE HAS PROMOTED MS VESIO BECAUSE OF HER UNIQUE SKILLS AND HARD WORK BUT HE ALSO MAKES A POINT OF TALKING TO HER DAILY GOING OUT OF HIS WAY TO SHARE INFORMATION AND GIVING HER SPECIAL PROJECT WORK INCLUDING STRATEGIC PLANNING THAT WILL KEEP HER INVOLVED WITH OTHER STAFFERS AND HE CALMS CLIENTS WHO COMPLAIN ABOUT BEING ASSIGNED TO A TELECOMMUTER SOME SAY OH GOD I'VE GOT TO WORK WITH SOMEBODY IN PITTSBURGH MR SANTOS SAYS THE COMPLAINTS SOON VANISHED AS MS VESIO WON OVER HER CLIENTS HE SAYS FINALLY UPWARDLY MOBILE TELECOMMUTERS HAVE TO BE MASTERFUL COMMUNICATORS MS PHILLIPS SAYS SHE USED EMAIL A LOT TO LET A SUCCESSION OF NEW BOSSES KNOW WHAT SHE WAS DOING SHE ADDS YOU MAY KNOW WHAT YOU'RE DOING AT HOME BUT THEY DON'T AND TELECOMMUTERS MUST NURTURE INTERNAL NETWORKS OF CONTACTS TO STAY IN THE DECISIONMAKING LOOP TELECOMMUTERS HAVE TO HAVE THE PRESENCE OF MIND TO KEEP OPEN BY TELEPHONE ALL THE INFORMAL CHANNELS THAT THEY USED TO USE FACE TO FACE SAYS CHARLES RODGERS PRESIDENT OF RODGERS & ASSOCIATES A UNIT OF WORK/FAMILY DIRECTIONS INC BOSTON 9312160141 931216 12 DAYS OF CHRISTMAS AND SANTA'S REINDEER WILL TAKE THE INFORMATION SUPERHIGHWAY BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL WHEN FIFTHGRADER LAUREN SUSALIS OF ALEXANDRIA VA SAT DOWN TO WRITE TO SANTA ASKING FOR STEREO HEADPHONES ROLLER SKATES AND DOLLS SHE DIDN'T BOTHER WITH A STAMP SHE INTERFACED WITH SANTA VIA ELECTRONIC MAIL YES VIRGINIA THERE REALLY IS A SANTA CLAUS HE'S ONLINE PERSONAL COMPUTER USERS CAN SEND CHRISTMAS WISH LISTS TO THE NORTH POLE IN SECONDS BY WAY OF EMAIL ADDRESS SANTA@NORTHPOLEORG OR ELVES@NORTHPOLEORG DELPHI INTERNET SERVICES CORP IN CAMBRIDGE MASS AMONG OTHERS PROVIDES THE ELECTRONIC CONNECTION TO SANTA AFTER JUST FOUR DAYS SOME 800 DELPHI SUBSCRIBERS MOSTLY ADULTS FROM AS FAR AWAY AS SOMALIA AND BOSNIA HAVE SENT HIM SEASON'S GREETINGS THE SANTA HOOKUP IS A WAY TO INTRODUCE A LOT OF PEOPLE TO THE ELECTRONIC COMMUNITY SAYS BRUCE WALDACK PRESIDENT OF DIGITALNATION INC A VOLUNTEER GROUP OF COMPUTER BUFFS ASSISTING DELPHI WITH THE SANTA PROJECT IN THE SUSALIS HOUSEHOLD THAT TRADITION IS ALREADY IN FULL SWING LAST WEEKEND LAUREN'S FATHER HELPED HER AND HER THREE SIBLINGS FOLLOW SANTA'S ONLINE INSTRUCTIONS JUST DIVIDE YOUR LIST INTO 20LINE SEGMENTS IN JUST A FEW SHORT MOMENTS I'LL BE GETTING YOUR CHRISTMAS LIST TENYEAROLD LAUREN WHO'S BEEN USING A PC SINCE SHE WAS SEVEN GOT FANCY I WROTE MY LETTER IN A FONT CALLED JENNIFER THAT LOOKS KINDA LIKE CURSIVE SHE EXPLAINS LATER THIS WEEK HER DAD WILL DIAL UP SANTA'S ANSWER REPLIES ARE CRAFTED WITHIN 48 HOURS BY DIGITALNATION ELVES USING A FORM LETTER TO WHICH A SHORT PERSONALIZED RESPONSE IS ADDED LAUREN FOR ONE IS SOLD ON THE CONCEPT OF AN ONLINE SANTA A LETTER COULD ALWAYS GET LOST IN THE MAIL SHE REASONS WITH A COMPUTER IT'S MORE GUARANTEED TO GET TO SANTA BUT EVEN A HIGHTECH ST NICK PROMISES ONLY THAT HE'LL TRY HARD TO GRANT REQUESTS THAT DISCLAIMER SHOULD HELP IN THE CASE OF A 35YEAROLD WOMAN WHO IMPLORED SANTA IS THERE ANYTHING YOU CAN DO ABOUT GETTING MY BOYFRIEND TO PROPOSE TO ME 9312160140 931216 NORTHWEST AIR IPO OF EQUITY AND DEBT IS SEEN AT 1 BILLION BY JACQUELINE M DOHERTY SPECIAL TO THE WALL STREET JOURNAL NORTHWEST AIRLINES IS MOVING AHEAD WITH PLANS TO RAISE ABOUT 1 BILLION IN AN INITIAL PUBLIC OFFERING OF STOCK AND DEBT AROUND THE END OF MARCH AND HAS CHOSEN LEHMAN BROTHERS AS THE LEAD MANAGER ACCORDING TO PEOPLE FAMILIAR WITH THE PLAN AS PREVIOUSLY REPORTED THE NATION'S FOURTHLARGEST AIRLINE WHICH WAS TAKEN PRIVATE IN 1989 IN A 365 BILLION LEVERAGED BUYOUT IS EXPECTED TO FILE AN INITIAL PUBLIC OFFERING PROSPECTUS WITH THE SECURITIES AND EXCHANGE COMMISSION LATER THIS MONTH THE AIRLINE HAS SAID IT WANTED TO SELL ABOUT 500 MILLION IN NEW EQUITY NEXT YEAR IT HAS ALSO SAID IT HOPED TO RAISE AN UNSPECIFIED AMOUNT OF MONEY LATER THIS YEAR THROUGH A NEW DEBT ISSUE EITHER TO THE PUBLIC OR TO PRIVATE INVESTORS AS PART OF A RESTRUCTURING THAT NARROWLY AVERTED A BANKRUPTCY FILING LAST SUMMER THE ST PAUL MINN COMPANY IS REQUIRED TO RAISE 500 MILLION IN NEW CAPITAL BY JUNE 1996 NORTHWEST AND LEHMAN DECLINED TO COMMENT YESTERDAY INDIVIDUALS FAMILIAR WITH THE PLAN SAID NORTHWEST INTENDS TO OFFER 500 MILLION OF EQUITY AND A LIKE AMOUNT OF DEBT AROUND THE END OF THE FIRST QUARTER THESE PEOPLE SAID THE COMANAGERS FOR THE EQUITY PORTION WILL BE CS FIRST BOSTON INC SALOMON BROTHERS INC SMITH BARNEY SHEARSON AND BT SECURITIES CORP THE DEBT OFFERING IS EXPECTED TO BE COMANAGED BY BT SECURITIES AND SALOMON THEY SAID THE SECURITIES FIRMS EITHER DECLINED TO COMMENT OR DIDN'T RETURN CALLS IT'S EXPECTED THAT PROCEEDS FROM THE OFFERINGS WILL BE USED TO REFINANCE THE COMPANY'S DEBT WHICH IS HELD PRIMARILY BY BANKS NORTHWEST IS A UNIT OF CLOSELY HELD WINGS HOLDINGS INC A SEPARATE AIRCRAFTFINANCING PROGRAM VALUED AT 200 MILLION TO 300 MILLION IS BEING STRUCTURED BY LEHMAN AND BT SECURITIES ACCORDING TO PEOPLE FAMILIAR WITH NORTHWEST'S PLANS THIS DEBT OFFERING WHICH IS EXPECTED TO BE PRIVATELY PLACED ISN'T DEPENDENT ON THE OTHER OFFERINGS SOME ANALYSTS HAVE SAID THE TIME COULD BE RIPE FOR A NORTHWEST PUBLIC OFFERING DESPITE THE AIRLINE'S HEAVY LONGTERM DEBT LOAD OF ABOUT 36 BILLION THE CARRIER RECENTLY REPORTED THIRDQUARTER PROFIT OF 1123 MILLION ITS FIRST QUARTERLY NET INCOME IN TWO YEARS 9312160139 931216 WHO'S NEWS TORSTAR CORP TORSTAR CORP TORONTO JOHN EVANS WAS NAMED CHAIRMAN OF THE PUBLISHING CONCERN DR EVANS 64 YEARS OLD SUCCEEDS BELAND HONDERICH 75 WHO'S RESIGNING AFTER 16 YEARS AS CHAIRMAN AND 50 YEARS AT TORSTAR MR HONDERICH JOINED THE TORONTO STAR NEWSPAPER AS A REPORTER IN 1943 AND LATER ROSE TO BECOME PUBLISHER THE COMPANY SAID HIS RESIGNATION TAKES EFFECT IMMEDIATELY DR EVANS A TORSTAR DIRECTOR SINCE 1984 IS ALSO CHAIRMAN OF ALLELIX BIOPHARMACEUTICALS INC A TORONTOBASED PHARMACEUTICAL CONCERN 9312160138 931216 LEGAL BEAT PUBLISHER SUES COMPUSERVE OVER A SONG BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL MUSIC PUBLISHERS SAY COMPUSERVE INC IS PLAYING THEIR SONG AND OWES ROYALTY PAYMENTS IN A LAWSUIT THAT BRINGS MUSICCOPYRIGHT ENFORCEMENT INTO THE MULTIMEDIA AGE A NEW YORK MUSIC PUBLISHER IS SEEKING PAYMENT FROM THE ONLINE SERVICES NETWORK FOR ALLEGEDLY DISTRIBUTING UNCHAINED MELODY WITHOUT PERMISSION IN ADDITION THE LAWSUIT SEEKS CLASSACTION STATUS ON BEHALF OF 140 OTHER PUBLISHERS THAT ALSO OWN COMPOSITIONS ALLEGEDLY AVAILABLE ON COMPUSERVE A UNIT OF H&R BLOCK INC KANSAS CITY MO THE NATIONAL MUSIC PUBLISHERS' ASSOCIATION INC NEW YORK A GROUP OF MORE THAN 500 PUBLISHING COMPANIES IS BACKING THE LITIGATION FINANCIALLY THE SUIT FILED EARLIER THIS MONTH IN FEDERAL COURT IN MANHATTAN IS APPARENTLY THE FIRST TO PLACE MUSICCOPYRIGHT ISSUES IN THIS HIGHTECH CONTEXT ENTERTAINMENT LAWYERS SAY SONGS ARE DISTRIBUTED ONLINE WHEN SOMEONE USES A COMPUTER OR ELECTRONIC INSTRUMENT SUCH AS A SYNTHESIZER TO CREATE A TUNE OR A NEW VERSION OF AN EXISTING COMPOSITION THE MUSICIAN CAN TRANSMIT THAT SONG IN SOME CASES USING SPECIAL HARDWARE TO ELECTRONIC DATABASES AVAILABLE THROUGH COMPUSERVE AND OTHER ONLINE NETWORKS THE SONG CAN BE TRANSMITTED BECAUSE IT HAS BEEN DIGITIZED LIKE WORDS SOUNDS CAN BE TURNED INTO THE ZEROES AND ONES OF COMPUTER LANGUAGE ENABLING THEM TO BE STORED TRANSMITTED AND REPRODUCED BY COMPUTERS PEOPLE WHO USE THE DATABASE CAN PICK UP THAT MESSAGE AND DROP IT INTO THEIR OWN COMPUTERS WITH THE RIGHT COMPUTER HARDWARE CALLED A SOUND CARD ALONG WITH A SET OF SPEAKERS THEY CAN CONVERT THE MESSAGE BACK INTO A MELODY THE PUBLISHERS SAY THAT WHEN THE MUSIC BEING TRANSFERRED IS A VERSION OF A COPYRIGHTED SONG THEY DESERVE ROYALTIES FROM COMPUSERVE THEY COULD OF COURSE ALSO SUE EACH INDIVIDUAL WHO PUT AN INFRINGING SONG ONLINE BUT IT'S TOO MUCH WORK SAYS THE PUBLISHERS' NEW YORK ATTORNEY ALAN L SHULMAN I'LL NEVER CHASE THEM ALL OVER THE COUNTRY IT'S UNCLEAR HOW OFTEN COPYRIGHTED TUNES ARE PUT ON THE DATABASE OR HOW MANY PEOPLE SUBSEQUENTLY PICK THEM UP BUT THE LAWSUIT ALLEGES THAT THE BALLAD UNCHAINED MELODY OWNED BY FRANK MUSIC CORP HAS BEEN INFRINGED AT LEAST 690 TIMES THE SONG WAS WRITTEN BY ALEX NORTH AND HY ZARET AND REGISTERED WITH THE US COPYRIGHT OFFICE IN 1955 FOUR VERSIONS OF THE SONG HIT THE CHARTS THAT YEAR AND IN 1965 A VERSION RECORDED BY THE RIGHTEOUS BROTHERS CLIMBED TO NO 4 IT GAINED RENEWED POPULARITY IN THE MOVIE GHOST WHICH USED THE RIGHTEOUS BROTHERS' VERSION WHAT WE DO KNOW ALREADY ABOUT ITS ONLINE TRANSMISSION IS ENOUGH TO SCARE THE HECK OUT OF US SAYS EDWARD P MURPHY PRESIDENT OF THE MUSIC PUBLISHERS' ASSOCIATION THE PUBLISHERS SEEK 100000 FOR EACH ALLEGED INFRINGEMENT LAWYERS SAY EXISTING COPYRIGHT LAW APPLIES TO THE CASE IN A STRAIGHTFORWARD WAY THE PUBLISHERS WILL HAVE TO SHOW THAT THE ALLEGEDLY INFRINGING SONGS ARE SUBSTANTIALLY SIMILAR TO THE ORIGINAL ONES EVEN THOUGH THE COPYRIGHT ACT DOESN'T SPECIFICALLY ADDRESS INTERACTIVE MEDIA IT CAN BE EXTENDED BY IMPLICATION TO THIS SAYS STAN SOOCHER AN ATTORNEY AND EDITOR OF THE ENTERTAINMENT LAW AND FINANCE JOURNAL NEW YORK BUT COMPUSERVE MAY NOT BE THE PROPER TARGET A MUSICIAN WHO PUTS AN UNAUTHORIZED VERSION OF A SONG ON A DATABASE PROBABLY IS AN INFRINGER SAYS NEIL BOORSTYN A COPYRIGHT LAWYER IN THE SAN FRANCISCO OFFICE OF LAW FIRM MCCUTCHEN DOYLE BROWN & ENERSEN HOWEVER HE SAYS IF THE PUBLISHERS WANT TO SHOW THAT THE DATABASE ITSELF IS A CONTRIBUTING INFRINGER THEY'LL HAVE TO PROVE THE DATABASE HAS NO SUBSTANTIAL LEGITIMATE USES IF SUCH USES EXIST THE DATABASE CAN'T BE HELD RESPONSIBLE ANY MORE THAN THE MAKER OF A TYPEWRITER IS LIABLE IF SOMEONE USES IT TO MAKE UNAUTHORIZED COPIES OF A PUBLICATION COMPUSERVE ARGUES THAT IT'S NOT RESPONSIBLE FOR ANY COPYRIGHT VIOLATIONS BECAUSE THE MUSIC FORUM IS MANAGED BY A THIRD PARTY KENT D STUCKEY GENERAL COUNSEL AND SECRETARY OF COMPUSERVE CITES A 1991 FEDERAL COURT RULING IN WHICH A COURT SAID THE NETWORK DOESN'T HAVE TO SCREEN DATABASES FOR DEFAMATORY STATEMENTS WHEN YOU'RE PROVIDING PEOPLE INFORMATION AT THE PRICE OF A MAGAZINE SUBSCRIPTION YOU CAN'T REVIEW AND CENSOR ALL OF THAT INFORMATION MR STUCKEY SAYS HE ADDS THAT THE COMPUTER NETWORK REQUIRES DATABASE MANAGERS TO PROMISE TO FOLLOW COPYRIGHT LAW JIM MAKI THE MANAGER OF THE MUSIC DATABASE SAYS HE LACKS THE RESOURCES TO FIGURE OUT WHETHER SONGS HAVE BEEN COPYRIGHTED BUT HE ADDS THAT PEOPLE WHO PUT SONGS IN THE FORUM ARE WARNED THAT THEY MUST HAVE THE RIGHT TO DO SO HE SAYS 5000 TO 7000 PEOPLE MOSTLY HOBBYISTS USE THE MUSIC DATABASE EACH MONTH THEY CRITIQUE EACH OTHERS' SONGS SHARE ADVICE ABOUT DIGITAL MUSIC EQUIPMENT COMMUNICATE WITH RECORDING ARTISTS AND RECEIVE RECORDCOMPANY PROMOTIONAL MATERIAL INCLUDING SNIPPETS OF SOONTOBERELEASED SONGS MR MAKI SAYS A REPRESENTATIVE OF THE MUSIC PUBLISHERS TOLD HIM LAST YEAR THAT HE MUST FILL OUT PAGES OF PAPERWORK AND PAY BETWEEN 25 AND 100 EVERY TIME SOMEONE PULLS A TUNE OFF THE DATABASE WE WERE KIND OF IN A QUANDARY FIGURING OUT HOW TO DO THE RIGHT THING SAYS MR MAKI WE'RE VERY PROMUSICIANORIENTED THAT'S WHAT WE DO WE'VE GOT TO FIND SOMETHING THAT INCLUDES EVERYBODY AND ISN'T SO EXPENSIVE PAN AMERICAN WORLD AIRWAYS INC AND A FORMER PAN AM PILOT FILED SEPARATE CIVIL SUITS SEEKING TO HOLD THE GOVERNMENT OF LIBYA LIABLE FOR DAMAGES IN CONNECTION WITH THE 1988 BOMBING OF PAN AM FLIGHT 103 OVER LOCKERBIE SCOTLAND THE LAWSUITS ARE THE FIRST AGAINST LIBYA STEMMING FROM THE DISASTER WHICH KILLED 270 PEOPLE BUT THE LEGAL ACTIONS FACE ENORMOUS LEGAL AND POLITICAL HURDLES SOME FAMILIES OF CRASH VICTIMS ALSO SAID THEY WERE CONCERNED THAT THE CASES WOULD DIVERT ATTENTION FROM EFFORTS TO RECOVER DAMAGES DIRECTLY FROM PAN AM IN SUITS CURRENTLY PENDING IN NEW YORK PAN AM'S SUIT WHICH WAS FILED IN EDINBURGH SCOTLAND SEEKS 375 MILLION FOR LOSS OF BUSINESS AND FOR THE VALUE OF THE LOST AIRCRAFT IN ROCKLEIGH NJ GREGORY BUHLER A LAWYER FOR PAN AM WHICH CEASED FLIGHT OPERATIONS AND SOUGHT FEDERAL BANKRUPTCYLAW PROTECTION IN 1991 SAID THE SUIT WAS PART OF THE NORMAL COURSE OF WINDING UP THE COMPANY'S AFFAIRS FOR CREDITORS BRUCE SMITH A FORMER PAN AM PILOT WHOSE WIFE DIED IN THE CRASH FILED A SEPARATE LAWSUIT IN US DISTRICT COURT IN WASHINGTON SEEKING 15 MILLION MR SMITH PREVIOUSLY FILED A SIMILAR ACTION IN SCOTLAND UNDER THE DOCTRINE OF SOVEREIGN IMMUNITY FOREIGN NATIONS GENERALLY CAN'T BE SUED IN US COURTS AND THE LAW IS BELIEVED TO BE ONLY SLIGHTLY MORE PLAINTIFFFRIENDLY IN SCOTLAND THE CASES ARE LIKELY TO REQUIRE THE COOPERATION AND SUPPORT OF US AND UNITED KINGDOM AUTHORITIES WHO SO FAR HAVE FOCUSED ON PURSUING SANCTIONS AND CRIMINAL CHARGES AGAINST THE LIBYANS RATHER THAN CIVIL RELIEF THIS RAISES MORE QUESTIONS WITH ME THAN IT ANSWERS SAID LEE KREINDLER A LAWYER WHO IS CURRENTLY SUING PAN AM IN NEW YORK ON BEHALF OF A NUMBER OF PAN AM 103 VICTIMS' FAMILIES NONE OF THE FAMILIES I KNOW OF ANYWHERE SUPPORT WHAT THEY ARE TRYING TO DO MR KREINDLER SAID OF MR SMITH'S SUIT LIBYA HAS MADE A NUMBER OF RECENT OVERTURES ABOUT PAYING MONEY TO VICTIMS' FAMILIES BUT MANY HAVE REJECTED THE IDEA OF ACCEPTING ANY MONEY WITHOUT A RESOLUTION OF THE CRIMINAL CHARGES ALLAN GERSON A LAWYER FOR MR SMITH SAID HE BELIEVES FOREIGN NATIONS SHOULD NOT BE IMMUNE FROM SUITS IN CASES OF ALLEGED TERRORISM AND HE SAID PURSUING DAMAGES WAS APPROPRIATE WHILE THE CRIMINAL CASE PROCEEDED HE ADDED I BELIEVE THE ISSUE OF COMPENSATION CAN STAND APART FROM THE ISSUE OF PUNISHMENT A LOSING PARTY CAN'T SEEK TO SETTLE A CASE AFTER A FEDERAL APPEALS COURT HAS DECIDED A KEY LEGAL ISSUE AND THEN EXPECT THE COURT TO ERASE THE PRECEDENTIAL VALUE OF THE DECISION AN APPELLATE PANEL HAS RULED THE CASE AROSE AFTER THE SECOND US CIRCUIT COURT OF APPEALS IN NEW YORK RULED IN OCTOBER IN FAVOR OF A PERSON INVOLVED IN A COMMERCIAL DISPUTE WITH MANUFACTURERS HANOVER TRUST CO NOW CHEMICAL BANKING CORP THE RULING WOULD HAVE SENT THE CASE BACK TO THE LOWER COURT FOR TRIAL BUT SHORTLY AFTER THE OPINION WAS FILED THE PARTIES AGREED TO SETTLE ON THE CONDITION THAT THE COURT VACATE ITS OPINION THEREBY ELIMINATING ITS PRECEDENTIAL EFFECT THE APPEALS COURT REFUSED JOINING THREE OTHER SISTER APPEALS COURTS THAT HAVE CONCLUDED THAT PARTIES WITH DEEP POCKETS SHOULD NOT BE ABLE TO MAKE AN UNFAVORABLE APPELLATE LEGAL PRECEDENT DISAPPEAR WHILE STILL ENCOURAGING PARTIES TO SETTLE BEFORE THE FILING OF AN APPELLATE DECISION WE DECLINE TO ALLOW THEM TO DICTATE BY PURCHASE AND SALE WHETHER THE PRECEDENT IT SETS WILL REMAIN IN EXISTENCE JUDGE AMALYA L KEARSE WROTE FOR THE THREEJUDGE PANEL TO RULE OTHERWISE WOULD INCREASE THE VULNERABILITY OF THE JUDICIAL SYSTEM TO MANIPULATION SHE CONCLUDED 9312160137 931216 REVIEW & OUTLOOK EDITORIAL OIL'S TROUBLES NOW THE MOTHER HUBBARDS IN THE WHITE HOUSE PROPOSE TO COMFORT THE DOMESTIC OIL INDUSTRY WHICH IS IN THE THROES OF ANOTHER PRICE COLLAPSE BUT THE CUSHION ISN'T MUCH A PLEDGE TO STUDY VARIOUS TECHNOLOGICAL REGULATORY AND EXPORT DISPENSATIONS DEPARTMENT OF ENERGY STUDIES OF HELP FOR THE OIL INDUSTRY HAVE GATHERED DUST FOR YEARS CONGRESS IS WHO DISPOSES AND IT HAS NOT BEEN INCLINED TO RELAX THE GRIP ON ENERGY PRODUCERS APART FROM PRESIDENT REAGAN'S PRICE DEREGULATION IN THE 1980S IN FACT THE TREND HAS BEEN JUST THE OPPOSITE AND STATE LAWMAKERS HAVE PILED ON FOR GOOD MEASURE ADD THESE BURDENS TO WHAT IS ALREADY A COMPARATIVE DISADVANTAGE FOR DOMESTIC DRILLERS VIS A VIS MOST OF THE BIG INTERNATIONAL PRODUCERS AND YOU HAVE A RECIPE FOR CONTRACTION WHEN PRICES STARTED THEIR STEEP DESCENT IN THE EARLY '80S EMPLOYMENT IN THE EXTRACTION AND REFINING STAGES OF THE BUSINESS BEGAN A DECLINE THAT HAS HALVED THE WORK FORCE FROM ITS PEAK OF 920000 THAT'S AS BAD AS ANY OF THE MORE WIDELY PUBLICIZED RUST BELT DOWNSIZINGS OURS IS NOT A BRIEF FOR PROTECTION OF AMERICAN OIL THOUGH VALID CAUTIONS ARE RAISED ABOUT THE SECURITY OF MAJOR WORLD SUPPLIERS INDEED WE FOUGHT A WAR TO DEFEND THEM NOT THREE YEARS AGO WE FIND THE MARKET OPEC AND ALL HAS SERVED CONSUMERS PRETTY WELL SINCE THE US SHUCKED THE INTERVENTIONARY NONSENSE OF THE 1970S BUT THE HOMEGROWN INDUSTRY THAT REMAINS IS NOT FOR WASTING THAT'S BEEN THE EFFECT HOWEVER OF TOO MANY MISDIRECTED PUBLIC POLICIES NORTH SLOPE OIL CAN'T BE EXPORTED FROM ALASKA SO IT IS DUMPED ON THE CALIFORNIA MARKET DRIVING CRUDE PRICES THERE TO 8 A BARREL LAST WEEK ENERGY SECRETARY HAZEL O'LEARY SAYS CONSIDERATION OF ENDING THIS TRADE PROHIBITION WILL BE PART OF HER STUDIES HOW ABOUT SUSPENSION OF THE JONES ACT WHICH REQUIRES THAT ALASKAN SHIPMENTS BE UNDER AMERICAN FLAG AND THEREBY INCREASES THEIR TRANSPORT COSTS AND CUTS THE RETURN AT THE BARREL HEAD BY A LIKE AMOUNT DON'T COUNT ON OPENING UP THE ALASKAN NATIONAL WILDLIFE REFUGE AND THE REST OF THE VAST WETLANDS UP THERE THE INTERIOR DEPARTMENT IS SEEKING TO ROUT ENERGY PRODUCTION FROM PUBLIC LANDS GENERALLY THE ENDANGERED SPECIES ACT HAUNTS CALIFORNIA'S CENTRAL VALLEY WHICH YIELDS OIL AS WELL AS CROPS AND GOOD LUCK ANYWHERE WITH THE HAZARDOUS WASTE WE USED TO CALL DRILLING MUD NEW OFFSHORE OIL MAYBE IN THE GULF OF MEXICO BUT CERTAINLY NOT ALONG THE PACIFIC COAST CHEVRON HAS HAD A HARD ENOUGH TIME GETTING APPROVAL OF A MEANS FOR DELIVERING THE FRUITS OF ITS EXISTING POINT ARGUELLO STRIKE OFF SANTA BARBARA AFTER 2 BILLION IN SUNK COSTS AT THE REFINING POINT OIL COMPANIES IN THE US CONFRONT A WELTER OF FEDERAL AND STATE ENVIRONMENTAL RULES MADE ALL THE MORE VEXING BY THE CLEAN AIR ACT AMENDMENTS OF 1990 IN A STATE LIKE CALIFORNIA THE OBLIGATION TO REFORMULATE GASOLINE IS CONFOUNDED BY OTHER AIRQUALITY REGS THAT HAMPER THE RETROFITTING OF REFINERIES THEN THERE ARE THE ETHANOL AND OTHER ALTERNATIVE FUELS CAMPAIGNS THAT BEDEVIL THE DOMESTIC MARKET WITH SUBSIDIES IRONICALLY THE ENERGY DEPARTMENT ON THE ONE HAND HAD BEEN SAYING SENSIBLY THAT IT WOULD WORK TO ERADICATE THIS FAVORITISM AT THE STATE LEVEL THEN ALONG CAME HEAVIER HANDS AT THE WHITE HOUSE WITH THE NEWS THIS WEEK THAT EPA WILL REQUIRE 30 OF REFORMULATED GASOLINE TO COME FROM RENEWABLE SOURCES MEANING ETHANOL IT IS LESS LIKELY THE STATES WILL BE ASKED TO GIVE UP POWERS MOST OF THEM HAVE TO FORCE OIL COMPANIES TO SET ASIDE A FRACTION OF PRODUCTION FOR POLITICALLY DETERMINED DISTRIBUTION IN TIME OF NEED AND FINALLY WHO CAN FORGET THAT THE ADMINISTRATION THAT NOW WANTS TO INTERCEDE MAKE THAT STUDY INTERCEDING ON BEHALF OF OIL PRODUCERS IS THE SAME ONE THAT PROPOSED A STIFF BTU TAX LAST SPRING AND EVENTUALLY SETTLED FOR A HIKE IN THE GASOLINE LEVY JUST BECAUSE YOUR INDUSTRY IS ON THE INTENSIVE CARE LIST TODAY DOESN'T MEAN IT WON'T BE ACCUSED OF CRIMES AGAINST HUMANITY TOMORROW IF THE ADMINISTRATION NEEDS A CORPORATE PUNCHING BAG NO DOUBT TECHNOLOGY CAN HELP IN THE LOCATION AND RAISING OF OIL AS WELL AS IN IMPROVING THE EFFICIENCY AND THUS THE CLEANLINESS WITH WHICH IT IS BURNED IF PERCHANCE THE CLINTON TEAM HAS SOME MARKETFRIENDLY IDEAS FOR ENCOURAGING THAT GREAT BUT TO THE DEGREE US OIL HAS DECLINED MORE THAN THE MARKET WOULD DEMAND THE REASONS ARE MAINLY LEGALISTIC ANY STUDIED RESPONSE BY THIS ADMINISTRATION OUGHT TO REFLECT THAT REALITY 9312160136 931216 SPECTRUM HOLOBYTE MERGER DEAL HUNT VALLEY MD SPECTRUM HOLOBYTE INC AN ALAMEDA CALIF HOME ENTERTAINMENT SOFTWARE PRODUCER COMPLETED ITS MERGER WITH MICROPROSE INC A HUNT VALLEY MAKER OF ENTERTAINMENT SOFTWARE THE MERGED COMPANY TO BE NAMED MICROPROSE INC WILL DEVELOP LICENSE PUBLISH AND MARKET INTERACTIVE ENTERTAINMENT SOFTWARE PRIMARILY FOR PERSONAL COMPUTERS AND FOR VIDEOGAME CONSOLES MICROPROSE WILL BE BASED IN ALAMEDA AND SPECTRUM CHIEF EXECUTIVE PATRICK FEELY WILL SERVE AS CHAIRMAN FORMER SPECTRUM HOLOBYTE SHAREHOLDERS RECEIVED ABOUT 60 OF THE SHARES OUTSTANDING OF THE COMBINED COMPANY'S COMMON STOCK IN THE MERGER 9312160135 931216 WHO'S NEWS RJR SELECTS GREENIAUS FOR INTERNATIONAL FOOD NEW YORK RJR NABISCO HOLDINGS CORP CONSOLIDATED THE OPERATION OF ITS INTERNATIONAL FOOD BUSINESS UNDER H JOHN GREENIAUS CHAIRMAN AND CHIEF EXECUTIVE OF NABISCO FOODS GROUP NABISCO INTERNATIONAL HAD BEEN RUN BY G RICHARD THOMAN WHO RESIGNED TO PURSUE OTHER INTERESTS RJR SAID IN A SIMILAR MOVE IN OCTOBER RJR CONSOLIDATED ITS WORLDWIDE TOBACCO BUSINESS UNDER ONE EXECUTIVE JAMES W JOHNSTON MR THOMAN HAD BEEN BROUGHT TO RJR BY ITS FORMER CHAIRMAN LOUIS V GERSTNER JR WHO LEFT TO RUN INTERNATIONAL BUSINESS MACHINES CORP SEVERAL SENIOR EXECUTIVES RECRUITED BY MR GERSTNER HAVE LEFT THE COMPANY SINCE HIS DEPARTURE 9312160134 931216 WORLD TRADE TALKS TRADE PACT IS SET BY 117 NATIONS SLASHING TARIFFS SUBSIDIES GLOBALLY GATT ACCORD ENDS SEVEN YEARS OF TALKS TAKES EFFECT JULY '95 BY BOB DAVIS AND LAWRENCE INGRASSIA STAFF REPORTERS OF THE WALL STREET JOURNAL GENEVA THE BATTLE OF GENEVA IS FINALLY OVER AFTER SEVEN YEARS OF TORTUOUS NEGOTIATIONS TRADE OFFICIALS FROM 117 NATIONS WRAPPED UP A TRADE PACT THAT SLASHES TARIFFS AND REDUCES SUBSIDIES GLOBALLY PETER SUTHERLAND DIRECTOR GENERAL OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE ENDED THE ROUND OF TALKS BY SMACKING HIS GAVEL AND WAVING IT OVER HIS HEAD IN A SIGN OF VICTORY AND RELIEF AS DELEGATES STOOD AND APPLAUDED THUNDEROUSLY YOU HAVE NOT ONLY GIVEN THE WORLD ECONOMY A MUCH NEEDED BOOST MR SUTHERLAND SAID YOU HAVE ALSO MADE A FARSIGHTED INVESTMENT IN A BETTER FUTURE BUT IN THE USUAL GATT FASHION WHERE NEGOTIATIONS NEVER REALLY END NATIONS WILL STILL CONTINUE TO TRY TO WRANGLE BETTER DEALS FROM THEIR TRADING PARTNERS BEFORE THE PACT TAKES EFFECT ON JULY 1 1995 IN WHAT DELEGATES HERE INFORMALLY CALL THE SUTHERLAND RULE NATIONS MAY CONTINUE TO SWEETEN THEIR PACKAGE OF TARIFF CUTS BUT NOT MAKE THEM LESS GENEROUS THE US FOR INSTANCE WANTS BRAZIL AND INDONESIA TO CUT TARIFFS MORE DEEPLY ON CHEMICALS AND JAPAN TO CUT THEM FURTHER ON WOOD PRODUCTS IF THEY DON'T MANAGE TO WIN THOSE CUTS THE WOOD AND CHEMICAL INDUSTRIES MAY OPPOSE THE PACT IN CONGRESS THE SWEEPING GATT PACT WILL END TARIFFS IN INDUSTRIES AS DIVERSE AS MEDICAL EQUIPMENT AND BEER AND SLASH OVERALL INDUSTRIAL TARIFFS BY AN AVERAGE OF ONETHIRD THE ACCORD INCLUDES NEW RULES TO PREVENT THE DUMPING OF GOODS AT UNFAIRLY LOW PRICES REDUCES AGRICULTURAL SUBSIDIES AND PROVIDES PATENT PROTECTION GLOBALLY WHILE THAT SHOULD GIVE A BOOST TO THE WORLD ECONOMY THE PACT IS CONSIDERABLY SMALLER THAN ORIGINALLY ENVISIONED IT WOULDN'T FOR EXAMPLE ACHIEVE A BROAD OPENING OF WORLD MARKETS TO THE SERVICE SECTOR AND IT DEFERRED DECISIONS ON SUCH HEATED ISSUES AS FRENCH QUOTAS ON US FILMS AND OPENING UP TELECOMMUNICATIONS SYSTEMS TO FOREIGN COMPANIES TRADE ISSUES ARE OFTEN VIEWED AS YAWNERS IN THE US BUT IN OTHER PARTS OF THE WORLD THEY ARE THE STUFF OF POPULISM AS NEWS OF THE GATT ACCORD SPREAD YESTERDAY FARMERS IN INDIA WHO FEAR THE END OF GOVERNMENT SUBSIDIES AND HIGH ROYALTY PAYMENTS FOR SEEDS STAGED DAYLONG SITINS IN SOUTH KOREA 1000 STUDENTS TORCHED US FLAGS AND CLASHED WITH POLICE OUTSIDE THE AMERICAN EMBASSY IN PROTESTS OVER LIFTING KOREA'S BAN ON RICE IMPORTS AND IN BRUSSELS FARMERS THREW FIRECRACKERS AND SET AN OLD TRACTOR ALIGHT DURING ANTIGATT PROTESTS IN GENEVA WHERE THE OVERALL MOOD WAS BUOYANT GATT DELEGATES NONETHELESS GAVE CLOSING SPEECHES THAT REFLECTED THE ACRIMONY THAT HAS MARKED THE NEGOTIATIONS MALAYSIA'S DELEGATE CRITICIZED THE SPECIAL TREATMENT AFFORDED BIG INDUSTRIALIZED COUNTRIES CANADA'S COMPLAINED OF PALTRY CUTS IN AGRICULTURAL SUBSIDIES JAPAN'S FRETTED ABOUT HIS COUNTRY'S EXTREMELY DIFFICULT POLITICAL DECISION TO OPEN ITS RICE MARKET AND EGYPT'S COMPLAINED THAT AFRICA WILL BE ESPECIALLY HARD HIT BECAUSE IT WILL LOSE PREFERENTIAL TREATMENT FOR ITS EXPORTS FROM SOME INDUSTRIALIZED COUNTRIES EACH WORD EACH COMMA HAS ITS OWN DRAMA ITS OWN HISTORY SAID PAKISTAN'S GATT DELEGATE AHMAD KAMAL EVEN NAMING A SUCCESSOR ORGANIZATION TO GATT REQUIRED LASTMINUTE NEGOTIATIONS ONCE THE ACCORD TAKES EFFECT GATT WILL CEASE TO EXIST AND IT WILL BE REPLACED BY AN INSTITUTION WITH WIDER POWERS TO RESOLVE DISPUTES AND OVERSEE TRADE IN SERVICES AND AGRICULTURE ORIGINALLY THE NEW NAME WAS TO BE THE MULTILATERAL TRADE ORGANIZATION BUT US TRADE REPRESENTATIVE MICKEY KANTOR AMONG OTHERS OBJECTED THAT THIS NAME WAS TOO DULL AND BUREAUCRATIC SO THE DELEGATES AGREED AT 11 AM YESTERDAY TO USE WORLD TRADE ORGANIZATION INSTEAD IT HAS MORE POP MORE POLITICAL APPEAL IN THE US A US TRADE OFFICIAL EXPLAINED IT WILL NEED IT PRESIDENT CLINTON YESTERDAY INFORMED CONGRESS THAT HE INTENDS TO SIGN THE PACT THE FIRST STEP IN THE US APPROVAL PROCESS BECAUSE THE ACCORD WAS REACHED BEFORE A CONGRESSIONALLY SET DEADLINE OF MIDNIGHT YESTERDAY CONGRESS WILL CONSIDER THE PACT LATER THIS YEAR ACCORDING TO SPECIAL PROCEDURES GOVERNING TRADE UNDER THESE SOCALLED FASTTRACK PROCEDURES CONGRESS CAN VOTE YES OR NO BUT NOT AMEND THE AGREEMENT MOST OTHER NATIONS REQUIRE LEGISLATIVE APPROVAL BUT SWITZERLAND WILL PUT THE TRADE PACT TO A NATIONAL REFERENDUM AS A PRACTICAL MATTER THE TRADE ACCORD'S EFFECTIVENESS IS ENSURED ONCE THE WORLD'S BIG NATIONS APPROVE THE ACCORD REFUSAL OF A SMALLER COUNTRY TO PARTICIPATE WOULDN'T SINK THE WHOLE DEAL FOR OTHERS IN THE US CONGRESSIONAL APPROVAL IS CONSIDERED LIKELY BUT THE TRADE PACT WILL FACE HEATED OPPOSITION FROM THE CONSUMERENVIRONMENTALLABORROSS PEROT ALLIANCE THAT OPPOSED THE NORTH AMERICAN FREE TRADE AGREEMENT UNLIKE NAFTA WHERE A NUMBER OF BIG ENVIRONMENTAL GROUPS BACKED THE PACT ALMOST ALL NOW OPPOSE GATT DAVID SCHORR A TRADE ANALYST AT THE WORLD WILDLIFE FUND ONE OF THE MILDEST ENVIRONMENTAL GROUPS SAID THAT GATT HAS BEEN INDIFFERENT AND SOMETIMES HOSTILE TO ENVIRONMENTAL CONCERNS HIS GROUP AND THE NATIONAL WILDLIFE FEDERATION TRACKED THE NEGOTIATIONS CLOSELY IN GENEVA AND CRITICIZED GATT FOR NOT FORMING AN ENVIRONMENTAL COMMITTEE IN THE WTO AS THE US HAD PROPOSED INSTEAD THE GATT NATIONS AGREED TO TAKE UP ENVIRONMENTAL ISSUES WHEN THEY SIGN THE ACCORD IN MARAKESH MOROCCO ON APRIL 15 1994 WE DON'T HAVE ANYTHING CONCRETE YET SAID MR SCHORR NOW WE HAVE A COMMITMENT TO TALK CLINTON TRADE NEGOTIATORS TRIED TO SHORE UP THEIR SUPPORT AMONG BUSINESS GROUPS IN THE LAST DAY OF NEGOTIATIONS THE US WON SUPPORT FOR STRONGER PATENT PROTECTION FOR SEMICONDUCTOR MAKERS BUT IT FAILED TO WIN APPROVAL OF A PLAN TO REQUIRE NATIONS SUCH AS INDIA AND PAKISTAN TO OPEN THEIR TEXTILE AND APPAREL MARKETS SIGNIFICANTLY BEFORE GRANTING THEM LARGER TEXTILE QUOTAS THE US AND DEVELOPING NATIONS NEGOTIATED ALL NIGHT TUESDAY OVER THE ISSUE AND CAME AWAY WITH AN AGREEMENT TO CHANGE A SINGLE WORD INSTEAD OF PLEDGING TO PROMOTE IMPROVED ACCESS TO TEXTILE MARKETS THE GATT ACCORD CALLS ON NATIONS TO ACHIEVE GREATER ACCESS A US TRADE OFFICIAL CALLED THE OUTCOME CREATIVE AMBIGUITY IN WHICH EACH SIDE CAN CLAIM VICTORY THE EUROPEAN COMMUNITY ALSO FACED LAST MINUTE NEGOTIATIONS WITH ITS OWN MEMBERS HOURS BEFORE THE TRADE DEADLINE YESTERDAY PORTUGAL THREATENED TO VETO AN ACCORD UNLESS ITS DEMANDS FOR PROTECTION FOR ITS AILING TEXTILE INDUSTRY WERE MET EC OFFICIALS SCRAMBLED TO COME UP WITH A PACKAGE OF FINANCIAL AID THEY ARE NOW DISCUSSING AN AID PACKAGE OF ABOUT 17 BILLION WHICH WOULD COME FROM FUNDS EARMARKED FOR POOR NATIONS AND THE EUROPEAN INVESTMENT BANK THE EC'S LONGTERM LENDING AGENCY SEE RELATED ARTICLE US BUSINESSES LIKE TRADE PACT AS WHOLE BUT NOT SOME PARTS WSJ DEC 16 1993 9312160133 931216 WHO'S NEWS COMPUTER TASK GROUP INC COMPUTER TASK GROUP INC BUFFALO NY MARK V MEGREGIAN 50 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF VICE PRESIDENT DEVELOPMENT AND INTEGRATION AT THIS PROVIDER OF PROFESSIONAL SOFTWARE AND INFORMATIONTECHNOLOGY CONSULTING SERVICES MR MEGREGIAN WAS PREVIOUSLY AN INDEPENDENT CONSULTANT PRIOR TO THAT HE WORKED FOR 27 YEARS AT INTERNATIONAL BUSINESS MACHINES CORP MOST RECENTLY AS DIRECTOR OF CONSULTING SERVICES MIDWESTERN AREA 9312160132 931216 WHO'S NEWS UNIQUEST INC UNIQUEST INC JACKSONVILLE FLA PETER R JOHNSON WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THE SOFTWARE DEVELOPER MR JOHNSON 45 YEARS OLD IS FOUNDER AND CHAIRMAN OF QUICK RESPONSE SERVICES INC AND PETER R JOHNSON & ASSOCIATES INC PROVIDERS OF INFORMATION SYSTEMS TO RETAILERS THE LATTER FIRM MERGED WITH UNIQUEST IN MAY MR JOHNSON SUCCEEDS AUGUST P KLEIN WHO RESIGNED IN OCTOBER IN A DISAGREEMENT WITH UNIQUEST'S BOARD ABOUT THE PACE OF ACQUISITIONS 9312160129 931216 ANNENBERG IS EXPECTED TO ANNOUNCE EDUCATION GIFT AT WHITE HOUSE EVENT BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL PHILANTHROPIST WALTER H ANNENBERG IS EXPECTED TO ANNOUNCE TOMORROW AT A WHITE HOUSE CEREMONY WHAT COULD BE THE LARGEST GIFT EVER MADE TO BENEFIT PUBLIC EDUCATION PEOPLE FAMILIAR WITH THE TERMS OF THE GIFT SAY THE EXACT AMOUNT IS STILL BEING WORKED OUT BUT THEY SAID IT COULD SURPASS MR ANNENBERG'S RECORDSETTING 365 MILLION CONTRIBUTION ANNOUNCED IN JUNE TO THREE UNIVERSITIES AND HIS FORMER NEW JERSEY PREP SCHOOL LAST MONTH US NEWS & WORLD REPORT QUOTED AN INDIVIDUAL CLOSE TO MR ANNENBERG AS SAYING HE WOULD GIVE AT LEAST 500 MILLION TO REFORM THE NATION'S PUBLIC SCHOOLS AN ASSISTANT TO MR ANNENBERG WOULDN'T CONFIRM OR DENY THAT NUMBER BUT CITED THE ARTICLE WHEN ASKED HOW MUCH HE PLANNED TO DONATE THE 85YEAROLD FORMER PUBLISHER HAS MADE LITTLE SECRET OF HIS DESIRE TO TARGET PRIMARY AND SECONDARY EDUCATION WITH HIS WEALTH IN JUNE HE TOLD THE WALL STREET JOURNAL THAT HE PLANNED TO DONATE THE BULK OF HIS FAMILY FOUNDATION'S 16 BILLION IN ASSETS TO ASSISTING YOUNG STUDENTS HE DIDN'T PROVIDE ANY DETAILS HOWEVER IN TOMORROW'S ANNOUNCEMENT IN WHICH MR ANNENBERG IS EXPECTED TO APPEAR WITH PRESIDENT CLINTON AT LEAST TWO EDUCATION REFORM ORGANIZATIONS WILL BE NAMED AS BENEFICIARIES PEOPLE FAMILIAR WITH THE DONATION SAID THE LARGEST SINGLE BENEFICIARY OF THE CONTRIBUTION IS EXPECTED TO BE THE COALITION OF ESSENTIAL SCHOOLS AT BROWN UNIVERSITY A NATIONWIDE NETWORK OF MIDDLE SCHOOLS AND HIGH SCHOOLS COMMITTED TO RESTRUCTURING SECONDARY EDUCATION ALMOST 700 PUBLIC AND PRIVATE SCHOOLS HAVE JOINED THE NETWORK INCLUDING 150 THAT HAVE FULLY IMPLEMENTED THE REFORM IDEAS OF COALITION FOUNDER AND CHAIRMAN THEODORE R SIZER A COUNCIL OF EDUCATION REFORM EXPERTS MAY ALSO BE FORMED WITH HEAVY BROWN UNIVERSITY INVOLVEMENT TO FUNNEL MONEY TO OTHER GROUPS OR SCHOOLS INDIVIDUALS FAMILIAR WITH THE PLAN SAY VARTAN GREGORIAN THE PRESIDENT OF BROWN UNIVERSITY AND A LONGTIME FRIEND OF MR ANNENBERG HAS BEEN PROVIDING ADVICE ON THE DONATIONS THE NEW AMERICAN SCHOOLS DEVELOPMENT CORP LAUNCHED BY BUSINESS LEADERS TWO YEARS AGO AT THE REQUEST OF THE BUSH ADMINISTRATION TO DESIGN MODELS FOR PUBLIC SCHOOLS IS EXPECTED TO RECEIVE ABOUT 50 MILLION MR ANNENBERG PREVIOUSLY DONATED 10 MILLION TO THE PRIVATE NONPROFIT CORPORATION WHICH ATTEMPTS TO SPREAD SCHOOLCHANGE IDEAS AND HAS BEEN STRUGGLING TO RAISE FUNDS MR SIZER'S COALITION EMPHASIZES DEEP UNDERSTANDING OF SEVERAL SUBJECTS RATHER THAN A MORE DIFFUSE APPROACH SCHOOLS IN THE COALITION LAUNCH TEAMLEARNING PROJECTS CALLED ACTIVE LEARNING IN WHICH STUDENTS ARE ENCOURAGED TO TAKE THE INITIATIVE AND CONDUCT RESEARCH WHILE TEACHERS COACH FROM THE SIDELINES THE COALITION HAS ONE OF THE BEST REPUTATIONS AMONG ACADEMICS WHO TRACK SCHOOLCHANGE EFFORTS MR ANNENBERG MR GREGORIAN AND OTHERS INVOLVED IN TOMORROW'S PLANNED ANNOUNCEMENT DECLINED TO DISCUSS DETAILS IN ADVANCE MR ANNENBERG FORMERLY OWNED TV GUIDE THE DAILY RACING FORM AND OTHER PUBLICATIONS AND SERVED AS A US AMBASSADOR TO BRITAIN SOME PREVIOUS GIFTS FROM WALTER H ANNENBERG'S FAMILY FOUNDATION THE ANNENBERG FOUNDATION 9312160128 931216 WORLD TRADE TALKS EUROPE'S REFINERS PLAN CUT IN ZINCSMELTING CAPACITY BRUSSELS EUROPE'S REFINING INDUSTRY FACING A FLOOD OF LOWPRICED RUSSIAN METAL IMPORTS PLANS TO CUT ITS ZINCSMELTING CAPACITY THE PLAN TO SET UP A SOCALLED CRISIS CARTEL HOWEVER MAY RUN AFOUL OF THE EUROPEAN COMMUNITY COMMISSION THOUGH INDUSTRY OFFICIALS SAY INITIAL CONTACTS WITH THE COMMISSION HAVE BEEN ENCOURAGING SENIOR EC OFFICIALS SAY THE COMMISSION HASN'T YET MADE UP ITS MIND WHETHER TO APPROVE THE MOVE UNDER EC COMPETITION LAW THE REFINERS WHICH INCLUDE UNION MINIERE SA RIOTINTO ZINC CORP MIM HOLDINGS LTD METALLGESELLSCHAFT AG AND METALEUROP SA WANT TO SLASH THEIR EC SMELTING CAPACITY BY AS MUCH AS 200000 TONS A YEAR OR ABOUT 10 THOUGH THE MOVE WOULD HAVE LITTLE EFFECT ON GLOBAL ZINC PRICES INDUSTRY OFFICIALS SAID IT SHOULD HELP BOLSTER THEIR PROFIT MARGINS IN EUROPE ZINC PRICES LIKE THOSE FOR SEVERAL OTHER BASE METALS SUCH AS ALUMINUM HAVE BEEN SEVERELY DEPRESSED OVER THE PAST YEAR WHILE A RECESSION IN WESTERN EUROPE HAS DAMPED DEMAND THE COLLAPSE OF THE SOVIET UNION HAS UNLEASHED A WAVE OF LOWPRICED IMPORTS 9312160127 931216 BUSINESS BRIEF ROCKWELL INTERNATIONAL CORP SPACE SYSTEMS DIVISION PLANS TO DISMISS 500 EMPLOYEES ROCKWELL INTERNATIONAL CORP'S SPACE SYSTEMS DIVISION SAID IT PLANS TO DISMISS ABOUT 500 EMPLOYEES AT ITS DOWNEY CALIF HEADQUARTERS AND IN NEARBY SEAL BEACH THE JOB CUTS TO BEGIN IN FEBRUARY ARE IN RESPONSE TO CUTBACKS AND CANCELLATIONS OF VARIOUS GOVERNMENT PROGRAMS INCLUDING THE SPACE STATION AND A CONTRACT FOR MAJOR STRUCTURAL SPARE PARTS FOR THE SPACE SHUTTLE A SPOKESWOMAN SAID THE DIVISION HAS ABOUT 8800 EMPLOYEES OF WHICH ABOUT HALF ARE IN DOWNEY AND SEAL BEACH THE PARENT COMPANY WHICH ALSO HAS INTERESTS IN AUTOMOTIVE ELECTRONICS AND PRINTING BUSINESSES IS BASED IN SEAL BEACH 9312160126 931216 WHO'S NEWS INTERNATIONAL PAPER CO INTERNATIONAL PAPER CO PURCHASE NY PATRICK F NOONAN 51 YEARS OLD WAS ELECTED A DIRECTOR OF THE PAPER AND FORESTPRODUCTS PRODUCER INCREASING THE BOARD'S SIZE TO 15 MR NOONAN IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE CONSERVATION FUND A NONPROFIT ORGANIZATION INVOLVED IN LAND AND WATER PRESERVATION 9312160125 931216 INTERNATIONAL RUSSIA VOTE COUNT ON CONSTITUTION RAISES QUERIES ABOUT TAMPERING SHIFTING NUMBERS ODDITIES AT THE POLLS AND DELAYS MAY POINT TO FUDGING BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THE SILVER LINING OF RUSSIA'S DARK TURN IN ITS ELECTION WAS SUPPOSED TO BE THAT EVEN THOUGH MORE THAN A THIRD OF THE VOTERS CHOSE EXTREME NATIONALISTS AND COMMUNISTS AT LEAST THEY APPROVED PRESIDENT BORIS YELTSIN'S CONSTITUTION OR DID THEY AS THE BALLOT COUNT DRAGS ON THERE ARE REASONS TO WONDER WHETHER THE CONSTITUTIONAL VOTE COUNT HAS BEEN TARNISHED BY GOVERNMENT TAMPERING A PROTRACTED WAIT FOR THE FINAL POLL RESULTS OF THE REFERENDUM SHIFTING OFFICIAL ESTIMATES OF THE ELECTORAL BASE AND ODDITIES IN SOME VOTING DISTRICTS RAISE THE QUESTION OF WHETHER RUSSIA'S AUTHORITIES ARE FUDGING THE NUMBERS TO MAKE SURE THE CONSTITUTION SQUEAKS THROUGH WE HAVE NOT SEEN ANYTHING THAT WOULD NECESSARILY CORROBORATE THAT RUMOR SAID RICHARD SOUDRIETTE DIRECTOR OF THE USBASED INTERNATIONAL FOUNDATION FOR ELECTORAL SYSTEMS WHICH HAS BEEN GIVING TECHNICAL HELP TO RUSSIA'S CENTRAL ELECTION COMMISSION BUT MR SOUDRIETTE ADDED YES WE ARE LOOKING INTO IT RUSSIA DESPERATELY NEEDS A POSTSOVIET CONSTITUTION MR YELTSIN'S CONSTITUTION SUFFERS FROM OVERLY DETAILED PROVISIONS FOR SOME LUXURIES RUSSIA CANNOT AFFORD SUCH AS A PERVASIVE SOCIAL SAFETY NET ITS STRENGTH HOWEVER IS THAT IT WOULD PROVIDE A FRAMEWORK FOR THE RULE OF LAW SAFEGUARDING SUCH BASICS AS INDIVIDUAL FREEDOM AND PROPERTY RIGHTS THE NEW CONSTITUTION WOULD ALSO HAND MR YELTSIN STRONG EXECUTIVE POWERS WHICH AS IT TURNS OUT HE WILL NEED TO CONFRONT HIS SIZABLE NUMBER OF WELLORGANIZED OPPONENTS IN THE NEW PARLIAMENT NOT LEAST TRANSITIONAL CLAUSE NO 3 OF THE NEW CHARTER WOULD EXTEND MR YELTSIN'S PRESIDENTIAL TERM TO 1996 FILLING OUT THE FULL FIVE YEARS FOR WHICH HE WAS ELECTED MR YELTSIN SAID LAST MONTH HE WOULD PREFER THAT COURSE DURING SEPTEMBER'S STANDOFF WITH THE OLD PARLIAMENT HE PROMISED HE WOULD HOLD A PRESIDENTIAL ELECTION IN JUNE TO WIN APPROVAL UNDER THE RULES SET UP BY MR YELTSIN HIMSELF THE DRAFT CONSTITUTION HAD TO PASS TWO HURDLES IN THE REFERENDUM HELD JOINTLY WITH PARLIAMENTARY ELECTIONS SUNDAY THERE HAD TO BE AT LEAST A 50 TURNOUT OF RUSSIANS ELIGIBLE TO VOTE AND AMONG THOSE VOTING THERE HAD TO BE A SIMPLE MAJORITY IN FAVOR AMONG THOSE WHO VOTED THE CHOICE ACCORDING TO PRELIMINARY RESULTS HAS BEEN YES BY A WIDE MARGIN FORECAST BY OFFICIALS SUNDAY AT ABOUT 60 AND ESTIMATED YESTERDAY AT ABOUT 574 THE STICKING POINT IS WHETHER ENOUGH VOTERS TURNED OUT TO VALIDATE THIS YES VOTE ON THIS ISSUE THE ESTIMATED MARGIN REPORTED BY RUSSIA'S CENTRAL ELECTION COMMISSION ON MONDAY THE FIRST DAY AFTER THE ELECTION WAS NARROWER 532 OF ALL ELIGIBLE VOTERS WERE SAID TO HAVE CAST BALLOTS BY YESTERDAY THIS TURNOUT MARGIN WAS LOOKING MORE COMFORTABLE ESTIMATED OFFICIALLY AT 5555 THE TROUBLE IS THAT THE ELECTORAL BASE HAS SOMEHOW BEEN SHRINKING AS DISTRICTS HAVE CONTINUED REPORTING IN LAST WEEK THE CENTRAL ELECTION COMMISSION WAS TALLYING REGISTERED VOTERS AT 1076 MILLION THIS WEEK THE FIGURE DROPPED TO 1053 MILLION THAT MEANS 12 MILLION FEWER VOTERS HAD TO TURN OUT FOR THE CONSTITUTION TO PASS THIS DIFFERENCE ALONE IS NOT ENOUGH TO SWITCH THE RESULT BUT THE DISCREPANCIES IN THE NUMBERS RAISE QUESTIONS ABOUT HOW CAREFULLY THE TALLY IS BEING HANDLED THOUGH HUNDREDS OF INTERNATIONAL OBSERVERS HAVE GENERALLY PRAISED THE ELECTIONS AS FAIR AND OPEN THE BALLOTCOUNTING HAS TURNED TRICKY IN SOME AREAS IN THE FAR EASTERN AMUR REGION FOR EXAMPLE PRESIDENTIAL REPRESENTATIVE GRIGORY NIKANDROV TOLD THE ITARTASS NEWS AGENCY THAT IT MIGHT BE RIGHT TO THROW OUT THE POLL RESULTS BECAUSE GROSS MISTAKES HAVE BEEN MADE WHILE COUNTING VOTES FOR THE DRAFT CONSTITUTION MR NIKANDROV'S CHARGE IS THAT ABOUT 15000 BALLOT PAPERS HAVE DISAPPEARED IT REMAINS TO BE DETERMINED WHETHER THIS IS A LEGITIMATE COMPLAINT INVOLVING SABOTAGE OF THE CONSTITUTIONAL VOTE OR AN EFFORT TO SCRATCH WHAT WAS ESSENTIALLY A PROTEST AGAINST THE CONSTITUTION IN WHICH PEOPLE POCKETED THEIR BALLOTS IN THE REPUBLIC OF TATARSTAN AND THE REGION OF CHELYABINSK RESULTS ARE ALSO ODD OBSERVERS FROM THE PARLIAMENTARY ASSEMBLY OF THE COUNCIL OF EUROPE TOLD ITARTASS MONDAY THAT THEY FOUND NO VIOLATIONS AT TATARSTAN'S POLLS BRUCE WEINROD A US OBSERVER IN CHELYABINSK FOR THE INTERNATIONAL REPUBLICAN INSTITUTE WAS LIKEWISE SATISFIED BUT CENTRAL ELECTION COMMISSION CHAIRMAN NIKOLAI RYABOV ANNOUNCED YESTERDAY THAT ELECTIONS IN BOTH TATARSTAN AND CHELYABINSK HAD FAILED DUE TO THIN TURNOUT ACCORDING TO INTERFAX NEWS SERVICE HOW THIS MIGHT AFFECT THE CONSTITUTIONAL COUNT IS UNCLEAR WITH FINAL RESULTS YET TO BE ANNOUNCED IT'S HARD TO SAY WHETHER THESE DEVELOPMENTS IN THE REFERENDUM PROCESS REFLECT DELIBERATE GOVERNMENT FIDDLING OR THE SHEER VAGARIES OF PRODUCING ANY NEAT TALLIES IN A COUNTRY WHERE CLEARING A BANK TRANSACTION BETWEEN MOSCOW AND EASTERN RUSSIA CAN TAKE MONTHS BUT THE CONSTITUTIONAL POLL BEARS CLOSE WATCHING SHOULD THE AUTHORITIES END UP FUDGING THE BALLOTS TO PASS A CONSTITUTION IT MUST BE TAKEN AS ANOTHER SERIOUS WARNING OF THE POLITICAL STORMS BREWING IN RUSSIA 9312160124 931216 WHO'S NEWS TWO SENIOR OFFICERS AT PRECISION SYSTEMS QUIT IN RESTRUCTURING ST PETERSBURG FLA PRECISION SYSTEMS INC SAID ITS TWO SENIOR OFFICERS ARE RESIGNING IN A MANAGEMENT RESTRUCTURING THE COMPANY A MAKER OF COMMUNICATIONS SYSTEMS SAID VERNON J TROUPE WILL RESIGN AS CHAIRMAN AND JACQUELINE E SOECHTIG WILL RESIGN AS PRESIDENT AND CHIEF EXECUTIVE OFFICER THE DEPARTURES ARE EFFECTIVE MONDAY THE PAIR HAD BEEN INSTRUMENTAL IN GUIDING THE COMPANY THROUGH ITS TRANSFORMATION INTO AN INDEPENDENT COMPANY PRECISION SAID PRECISION SYSTEMS WAS SPUN OFF FROM HOME SHOPPING NETWORK INC IN AUGUST 1992 WITH ITS TRANSFORMATION COMPLETE THE COMPANY HAS APPOINTED JOHN D LOEWENBERG CHAIRMAN AND RUSSELL I PILLAR CHIEF EXECUTIVE OFFICER THE POSITION OF PRESIDENT WASN'T FILLED BOTH MEN ARE DIRECTORS MR LOEWENBERG 53 YEARS OLD IS CHIEF EXECUTIVE OF AETNA INFORMATION TECHNOLOGY MR PILLAR 28 IS A PARTNER IN CRITICAL MASS A CONSULTING FIRM SEPARATELY PRECISION SYSTEMS SAID IT COMPLETED A PRIVATE FINANCING THAT PROVIDES IT WITH AN ADDED 58 MILLION OF WORKINGCAPITAL FUNDS BEFORE PAYMENT OF RELATED EXPENSES 9312160123 931216 MARKETING & MEDIA LOS ANGELES KINGS OWNER TO SELL STAKE IN HOCKEY TEAM BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES LOS ANGELES KINGS OWNER BRUCE MCNALL AGREED TO SELL A SUBSTANTIAL STAKE IN THE HOCKEY TEAM TO AN EXECUTIVE AND A DIRECTOR OF IDB COMMUNICATIONS GROUP INC IN A TRANSACTION THAT INVOLVES CONSTRUCTION OF A NEW ARENA IN THIS AREA IN EXCHANGE FOR THE UNDISCLOSED STAKE IN THE KINGS MR MCNALL SAID HE WOULD RECEIVE AN INTEREST IN THE NEW 125 MILLION ARENA WHICH HE WOULD OWN JOINTLY WITH IDB CHAIRMAN JEFFREY P SUDIKOFF AND CABLETELEVISION AND SPORTSARENA EXECUTIVE JOSEPH M COHEN WHO SERVES ON THE IDB BOARD IDB A CULVER CITY CALIF COMPANY THAT SUPPLIES SATELLITE TRANSMISSION AND DISTRIBUTION SERVICES FOR THE BROADCASTING AND DATAVOICE INDUSTRIES ISN'T PART OF THE DEAL BUT A PERSON FAMILIAR WITH THE TRANSACTION CALLED IT HIGHLY POSSIBLE THAT THE COMPANY WILL BECOME AN OWNER OF THE NEW ARENA IN THE FUTURE SONY CORP'S FILM UNIT HAD BEEN IN THE LATE STAGES OF NEGOTIATIONS ON A SIMILAR TRANSACTION UNTIL EARLY THIS WEEK INDIVIDUALS CLOSE TO THE DISCUSSIONS SAY BUT TALKS FELL APART SONY WOULDN'T COMMENT MR MCNALL SAID HE IS CONTINUING HIS EFFORTS TO WOO AS A PRINCIPAL IN THE DEAL JERRY BUSS OWNER OF BASKETBALL'S LOS ANGELES LAKERS AND THE GREAT WESTERN FORUM THE ARENA IN THE LOS ANGELESAREA COMMUNITY OF INGLEWOOD WHERE THE KINGS ARE COMMITTED TO PLAY FOR AT LEAST THE NEXT 10 YEARS THE NEW ALLIANCE OF MESSRS MCNALL SUDIKOFF AND COHEN WOULD BENEFIT FROM THE PARTICIPATION OF MR BUSS WHO COULD RELEASE THE KINGS FROM THEIR LEASE ON FAVORABLE TERMS AND POSSIBLY BRING HIS LAKERS INTO THE NEW ARENA IF MR BUSS SIGNS ON THE 16000SEAT FORUM COULD BE DEMOLISHED AND REPLACED BY A STATEOFTHE ART COMPLEX WITH LUXURY SUITES RETAIL STORES STUDIO PRODUCTION FACILITIES AND 4000 ADDITIONAL SEATS MR MCNALL SAID IN A STATEMENT MR BUSS SAID I WILL BE INTERESTED IN WHAT BRUCE JEFFREY AND JOE HAVE TO PRESENT AS I AM VERY INTERESTED IN A NEW SPORTS COMPLEX FOR INGLEWOOD IF THERE IS AN OPPORTUNITY FOR US TO PARTICIPATE WE WILL BE GLAD TO BE PART OF IT NO SITE HAS BEEN SELECTED IN THE EVENT MR BUSS CHOOSES NOT TO PARTICIPATE THE NEW ARENA WILL COST 125 MILLION TO 150 MILLION AND COULD BE READY FOR THE KING'S HOME OPENER IN OCTOBER 1996 ESTIMATES OF THE KINGS' VALUE RANGE FROM 71 MILLION TO 100 MILLION THE TEAM IS THE FIFTHMOSTVALUABLE HOCKEY FRANCHISE IN THE NATIONAL HOCKEY LEAGUE ACCORDING TO NEW YORKBASED FINANCIAL WORLD MAGAZINE WHICH TRACKS VALUES OF SPORTS FRANCHISES 9312160122 931216 DOFASCO SELLS ALGOMA SHARES HAMILTON ONTARIO DOFASCO INC SAID IT SOLD 27 MILLION PREFERRED SHARES OF A SUBSIDIARY OF ALGOMA STEEL INC A STEEL CONCERN BASED IN SAULT STE MARIE ONTARIO FOR ABOUT 40 MILLION CANADIAN DOLLARS US30 MILLION A SPOKESMAN FOR DOFASCO A STEEL CONCERN BASED IN HAMILTON SAID THAT SINCE THE COMPANY WROTE OFF ITS INVESTMENT IN ALGOMA IN 1990 THE PROCEEDS WILL BE RECORDED AS A GAIN IN THE FOURTH QUARTER THE SPOKESMAN DECLINED TO SAY WHO BOUGHT THE PREFERRED SHARES DOFASCO HAS NO OTHER INTEREST IN ALGOMA 9312160121 931216 WHO'S NEWS COMPUSA'S MORTON RESIGNS TOP POSTS AMID DISSATISFACTION OVER PROFITABILITY BY ARTHUR BUCKLER STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS COMPUSA INC'S CHAIRMAN AND CHIEF EXECUTIVE NATHAN P MORTON WHO SPEARHEADED THE COMPUTERSUPERSTORE CHAIN'S RAPID GROWTH RESIGNED UNEXPECTEDLY AMID DISSATISFACTION WITH THE COMPANY'S PROFITABILITY THE RETAILER NAMED ITS PRESIDENT AND CHIEF OPERATING OFFICER JAMES F HALPIN TO SUCCEED MR MORTON AS CHIEF EXECUTIVE GILES H BATEMAN AN OUTSIDE DIRECTOR WHO WAS A COFOUNDER OF PRICE CO WAS ELECTED CHAIRMAN SINCE MR MORTON JOINED COMPUSA AS A SENIOR EXECUTIVE IN 1989 THE COMPANY GREW FROM TWO STORES TO 66 WITH SALES NOW RUNNING AT AN ANNUAL RATE EXCEEDING 17 BILLION HIS RESIGNATION CAME JUST SEVEN MONTHS AFTER HE WAS NAMED CHAIRMAN MR MORTON 45 YEARS OLD HAD BEEN CEO SINCE 1990 COMPUSA'S STOCK WHICH FELL ON THE NEWS CLOSED YESTERDAY AT 20375 DOWN 2125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING A COMPANY SPOKESWOMAN SAID MR MORTON TENDERED HIS RESIGNATION TUESDAY AND THE BOARD ACCEPTED IT THAT NIGHT SHE WOULDN'T ELABORATE EXCEPT TO SAY THERE WAS NO KNOCKDOWN DRAGOUT FIGHT SHE SAID SHE DIDN'T KNOW WHO INITIATED MR MORTON'S DEPARTURE OTHER COMPANY OFFICIALS WOULDN'T COMMENT AND MR MORTON COULDN'T BE REACHED HOWEVER ANALYSTS SAID DIRECTORS MUST HAVE BEEN UNHAPPY WITH COMPUSA'S PROFIT NUMBERS THE COMPANY POSTED A 986000 LOSS FOR ITS FIRST QUARTER WHICH ENDED SEPT 30 ON SALES OF 4366 MILLION IN THE FISCAL YEAR THAT ENDED JUNE 30 COMPUSA POSTED NET INCOME OF 123 MILLION OR 67 CENTS A SHARE ON SALES OF 134 BILLION THE PROBLEM HAS BEEN OVERALL EXPENSE CONTROL SAID JAMES M MEYER AN ANALYST AT JANNEY MONTGOMERY SCOTT INC PART OF THE PROBLEM IS WHEN YOU GROW AS RAPIDLY AS THEY DO YOU CREATE A LOT OF INEFFICIENCY HE SAID COMPUSA'S SELLING GENERAL AND ADMINISTRATIVE EXPENSES AS A PERCENTAGE OF SALES HAVE INCREASED IN THE PAST FIVE CONSECUTIVE QUARTERS IT SEEMS CLEAR TO ME THE BOARD NEEDED TO MAKE A CHANGE OF DIRECTION AND LEADERSHIP SAID DENNIS TELZROW AN ANALYST AT PRINCIPAL/EPPLER GUERIN & TURNER IN DALLAS I'M SURE IT MUST HAVE BEEN A DIFFICULT DECISION FOR THE BOARD THE DIRECTORS ARE LIKELY TO BE LOOKING TO MR HALPIN 42 TO KEEP A CLOSER EYE ON COSTS BEFORE JOINING COMPUSA IN SEPTEMBER HE WAS CEO OF HOME BASE A CALIFORNIA HOMEIMPROVEMENTS RETAILER OWNED BY WABAN INC HE ALSO SERVED AS CHIEF EXECUTIVE OFFICER OF BJ'S WHOLESALE CLUB A CHAIN OF STORES IN THE EASTERN US ONE WAY FOR MR HALPIN TO KEEP EXPENSES DOWN WOULD BE TO SLOW THE COMPANY'S GROWTH THE COMPUSA SPOKESWOMAN SAID THE COMPANY STILL INTENDS TO OPEN 12 MORE STORES BY THE END OF JUNE BUT HASN'T DECIDED UPON ITS GROWTH STRATEGY BEYOND THAT TIME 9312160120 931216 AMERICAN ANNUITY SHARE OFFER CINCINNATI AMERICAN ANNUITY GROUP INC SAID ITS BOARD APPROVED AN OFFER TO PURCHASE COMMON SHARES FOR 11 A SHARE FROM HOLDERS WHO OWNED 10 OR FEWER SHARES AS OF DEC 13 SHAREHOLDERS ELIGIBLE FOR THE OFFER WHICH WILL EXPIRE JAN 28 WILL RECEIVE THE QUARTERLY CASH DIVIDEND OF FIVE CENTS A SHARE PAYABLE DEC 29 9312160119 931216 WORKPLACE INJURIES ILLNESSES ROSE SHARPLY IN 1992 US REPORTS WASHINGTON WORKPLACE INJURIES AND ILLNESSES ROSE LAST YEAR TO THEIR HIGHEST LEVEL IN MORE THAN A DECADE PROVIDING FRESH AMMUNITION FOR DEMOCRATS LOOKING TO IMPOSE NEW SAFETY REQUIREMENTS ON COMPANIES THE LABOR DEPARTMENT'S BUREAU OF LABOR STATISTICS SAID A TOTAL OF 68 MILLION INJURIES AND ILLNESSES WERE REPORTED IN THE NATION'S PRIVATE SECTOR LAST YEAR THE 1992 RATE 89 CASES PER 100 FULLTIME WORKERS IS THE HIGHEST SINCE 1979 WHEN THERE WERE 95 CASES OF ILLNESS OR INJURY FOR EVERY 100 WORKERS MOREOVER THE JUMP FROM AN 84CASE RATE IN 1991 IS THE LARGEST YEARTOYEAR INCREASE IN WORKPLACE INJURY AND ILLNESS SINCE ADOPTION OF THE OCCUPATIONAL SAFETY AND HEALTH ACT IN 1970 THE INCREASE WAS CENTERED IN WHOLESALE AND RETAIL TRADE FINANCE AND SERVICE INDUSTRIES THE BLS REPORT SAID MANY OF THE NEW OCCUPATIONAL ILLNESSES WERE SOCALLED CUMULATIVE TRAUMA DISORDERS SUCH AS CARPAL TUNNEL SYNDROME OUR NATION'S JOBSAFETY LAW IS FAILING TO PROTECT OUR WORKERS CLEARLY THERE IS A NEED FOR A REVITALIZED OSHA PROGRAM AND A NEW COMMITMENT TO WORKER SAFETY AND HEALTH SAID PEG SEMINARIO DIRECTOR OF THE AFLCIO DEPARTMENT OF OCCUPATIONAL SAFETY AND HEALTH LABOR SECRETARY ROBERT REICH TERMED THE RATE OF ILLNESS AND INJURIES UNACCEPTABLE IN A LETTER TO CONGRESSIONAL DEMOCRATS TWO WEEKS AGO HE BACKED LEGISLATION THAT WOULD FORCE ALL COMPANIES WITH 11 OR MORE EMPLOYEES TO SET UP WORKERMANAGEMENT SAFETY TEAMS THE LEGISLATION ALSO WOULD INCREASE CRIMINAL PENALTIES FOR EGREGIOUS VIOLATORS OF SAFETY LAWS IN OCTOBER THE DEPARTMENT REPORTED THAT THE RATE OF WORKPLACE FATALITIES IN 1992 HAD DECREASED THE BLS REPORT RELEASED YESTERDAY INCLUDED ONLY NONFATAL INJURIES OR ILLNESSES 9312160118 931216 MARKETING & MEDIA FOX NETWORK IS KEY CONTESTANT FOR NFL RIGHTS BY JOHN HELYAR STAFF REPORTER OF THE WALL STREET JOURNAL THE FOX BROADCASTING CO NETWORK EMERGED AS A MAJOR PLAYER IN NEGOTIATIONS FOR NATIONAL FOOTBALL LEAGUE TELEVISION RIGHTS THE FIRST TIME IN YEARS THE FOURTH BROADCAST NETWORK HAS MADE A SERIOUS EFFORT FOR A MAJOR SPORTSRIGHTS CONTRACT WE'RE IN THERE SLUGGING IT OUT SAID RUPERT MURDOCH CHAIRMAN OF FOX'S PARENT AUSTRALIA'S NEWS CORP IN AN INTERVIEW WE HAVE MADE A PRESENTATION TO THE NFL SHOWING WE'RE FIT AND CAPABLE OF HANDLING THE RIGHTS A SOURCE AT ANOTHER NETWORK CONFIRMED FOX HAS PUT SERIOUS MONEY BEFORE THE NFL FOX'S INTEREST ALSO GIVES THE LEAGUE AN IMPORTANT POINT OF LEVERAGE AT A TIME OTHER NETWORKS HAVE BALKED AT ITS ASKING PRICE FOR TV RIGHTS THE NFL'S CURRENT FOURYEAR 36 BILLION TV PACKAGE SPREAD AMONG FIVE BROADCAST AND CABLE NETWORKS EXPIRES THIS SEASON THE LEAGUE WANTS TO MAINTAIN AT LEAST THAT LEVEL OF TV REVENUE WHICH PAYS 325 MILLION TO EACH TEAM BUT SOME NETWORKS HAVE BALKED MAINTAINING THEY'VE TAKEN A BATH ON THIS DEAL CBS INC HAS LOST ABOUT 100 MILLION AND GENERAL ELECTRIC CO'S NBC UNIT 88 MILLION THIS SEASON ALONE BY SOME INDUSTRY ESTIMATES NBC SPORTS PRESIDENT DICK EBERSOL HAS SAID HE'S PREPARED TO DROP THE NFL IF RIGHTS FEES AREN'T REINED IN LANDING THE NFL COULD HELP RESTORE THE LUSTER TO FOX WHICH HAS SUFFERED DECLINING RATINGS THIS YEAR FOX FACES POSSIBLE COMPETITIVE THREATS FROM PARAMOUNT COMMUNICATIONS INC AND TIME WARNER INC WHICH ARE SEPARATELY ATTEMPTING TO LAUNCH THEIR OWN BROADCAST NETWORKS WITH INDEPENDENT TV STATIONS IT WOULD HELP OUR RATINGS AND OUR AD RATES THROUGHOUT SAID MR MURDOCH WHO HAS PERSONALLY MET WITH THE NFL'S TV NEGOTIATORS IT WOULD GIVE A BOOST TO THE NETWORK'S PROFILE AND INCREASE OUR CHANCES OF GETTING FIRSTCLASS AFFILIATES IN 1987 WHEN FOX WAS IN ITS INFANCY IT NEARLY OUTBID ABC FOR MONDAY NIGHT FOOTBALL BUT THE NFL DECIDED TO STAY WITH THE ESTABLISHED NETWORK WHICH HAD CARRIED THE GAME SINCE 1970 FOX HAS SINCE SHOWN LITTLE INTEREST IN SPORTS THE NFL'S NIELSEN RATINGS FOR THIS YEAR HAVE BEEN MIXED ABC'S MONDAY NIGHT GAMES ARE UP 2 AND TURNER NETWORK TELEVISION'S ARE UP 10 THE OTHER THREE RIGHTS HOLDERS ARE MARGINALLY DOWN CBS 2 NBC 3 AND ESPN 2 BUT THE NFL REMAINS THE TOPRATED SPORT ON TELEVISION AND A BELLWETHER FOR TV RIGHTS FEES ABC AND ESPN ARE UNITS OF CAPITAL CITIES/ABC INC TURNER IS A UNIT OF TURNER BROADCASTING SYSTEM INC THE PACE OF THE TV TALKS HAS PICKED UP IN RECENT DAYS BY SOME ACCOUNTS NFL COMMISSIONER PAUL TAGLIABUE IS TRYING TO WRAP UP AT LEAST A PORTION OF THE PACKAGE BY CHRISTMAS THE PLAYOFFS START AFTER THAT AND THEY'D RATHER HAVE THE FOCUS ON THOSE THAN THE NEGOTIATIONS SAID ONE TV INDUSTRY SOURCE AN NFL SPOKESMAN DECLINED TO COMMENT ON THE TIMING OF NEGOTIATIONS MEG COX CONTRIBUTED TO THIS ARTICLE 9312160117 931216 LETTERS TO THE EDITOR FINICKY HOGS REGARDING YOUR NOV 18 PAGEONE ARTICLE ON PAWPAWS PLEASE BE ADVISED THAT IN THE MISSOURI OZARKS WILD PAWPAWS ARE A SEPTEMBER DELIGHT BUT STRANGELY ENOUGH HOGS WON'T EAT THEM 9312160116 931216 TRUMP MAY GET LOS ANGELES INVESTORS TO HELP FINANCE PROJECT IN MANHATTAN BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL A LOS ANGELESBASED REALESTATE INVESTMENT FIRM HAS AGREED TO PROVIDE DONALD TRUMP WITH DESPERATELY NEEDED FINANCING TO BUILD APARTMENT RETAIL AND OFFICE BUILDINGS ON THE 75ACRE TRACT OF VACANT LAND THAT HE OWNS IN MANHATTAN PROVIDED THAT HIS LENDERS SELL THE EXISTING MORTGAGE AT A STEEP DISCOUNT COLONY CAPITAL INC ONE OF THE NATION'S LARGEST INVESTORS IN DISTRESSED REALESTATE ASSETS HAS OFFERED TO BUY THE ROUGHLY 250 MILLION IN EXISTING DEBT ON THE ABANDONED RAIL YARDS FROM A SYNDICATE OF BANKS LED BY CHASE MANHATTAN CORP FOR BETWEEN 80 MILLION AND 100 MILLION ACCORDING TO TWO PEOPLE FAMILIAR WITH THE NEGOTIATIONS AFTER THAT COLONY WOULD BEGIN FUNDING THE CONSTRUCTION WE'RE RECAPITALIZING THE JOB WITH COLONY PUTTING UP THE FINANCING SAID MR TRUMP WE ANTICIPATE STARTING CONSTRUCTION WITHIN THE NEXT TWELVE MONTHS ON FOUR APARTMENT BUILDINGS WITH 1500 RENTAL UNITS HE ADDED CHASE AND THE HALFDOZEN OTHER MEMBERS OF THE LENDING SYNDICATE HAVE GIVEN TENTATIVE APPROVAL TO THE SALE BUT ONLY IF THE LOAN SALE IS CLOSED BY YEAR END ACCORDING TO ONE PERSON FAMILIAR WITH THE TALKS THE PARTIES ARE WORKING FURIOUSLY TO FINALIZE THE DEAL THERE WON'T BE A HOLIDAY BREAK FOR THESE PEOPLE SAID THE OBSERVER IT'S GOING TO GO DOWN TO THE WIRE BOTH MR TRUMP AND THOMAS BARRACK JR COLONY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER DECLINED TO COMMENT ON THE BANK TALKS A SPOKESMAN FOR CHASE HAD NO IMMEDIATE COMMENT SKEPTICS HAVE DOUBTED THAT MR TRUMP WOULD EVER BE ABLE TO BREAK GROUND ON HIS LONGPROPOSED RIVERSIDE SOUTH PROJECT A MIXTURE OF 5700 APARTMENTS 375000 SQUARE FEET OF RETAIL AND OFFICE SPACE AND 25 ACRES OF PARK STRETCHING ALONG THE HUDSON RIVER ON MANHATTAN'S UPPER WEST SIDE AFTER BUYING THE LAND IN 1985 MR TRUMP PROPOSED TRUMP CITY A 145MILLIONSQUAREFOOT MIXEDUSE DEVELOPMENT THAT WAS TO INCLUDE THE WORLD'S TALLEST BUILDING IN 1991 AFTER A STORM OF NEIGHBORHOOD OPPOSITION HE WITHDREW THE PLAN AND DESIGNED A SCALEDDOWN VERSION WHICH INCLUDED APARTMENTS SET ASIDE FOR RENTAL TO LOW AND MIDDLEINCOME TENANTS THAT PROPOSAL RECEIVED ZONING APPROVAL BUT IN JUNE MR TRUMP'S MORTGAGE ON THE LAND CAME DUE WITHOUT ANY ALTERNATE FINANCING IN SIGHT WITH LITTLE DESIRE TO OWN THE SITE ITSELF CHASE DID NOT MOVE TO FORECLOSE OPTING INSTEAD TO LET MR TRUMP SEARCH FOR ALTERNATE FINANCING BUT MANY OF THE BANKS AND INSURERS THAT HAVE TRADITIONALLY FINANCED SUCH LARGESCALE PROJECTS HAVE WITHDRAWN FROM THE MARKET YOU AREN'T GOING TO HAVE LENDERS STEPPING IN AND MAKING LOANS UNTIL THE SAFETY OF THE MARKET HAS BEEN ESTABLISHED SAID MR BARRACK WHY ARE WE DOING IT THE RENTAL RESIDENTIAL MARKET IN MANHATTAN IS RECOVERING AT AN EXPONENTIAL RATE VACANCY RATES FOR RENTALS IN DESIRABLE MANHATTAN NEIGHBORHOODS RANGE FROM 2 TO 4 HE SAID WHICH IS ABOUT AS DESIRABLE AS YOU CAN GET MR BARRACK DECLINED TO SPECIFY HOW MUCH COLONY IS PREPARED TO INVEST IN THE PROJECT OR TO COMMENT ON THE RETURN IT EXPECTS ON THE INVESTMENT HE INDICATED THAT MR TRUMP WOULD RETAIN FULL OWNERSHIP ONE PERSON FAMILIAR WITH THE ARRANGEMENT SAID THAT IN ADDITION TO COLLECTING INTEREST ON ITS PROJECT LOANS COLONY WOULD RECEIVE A CUT OF THE PROJECT'S REVENUES ABOUT 80 OF THE FIRST FOUR APARTMENT BUILDINGS WHICH WERE DESIGNED BY PHILIP JOHNSON WILL RENT AT MARKET RATES WHICH MR BARRACK PROJECTED AT AN ANNUAL RATE OF ABOUT 35 PER SQUARE FOOT MR TRUMP IS PLANNING TO SET ASIDE THE REMAINING 20 FOR TENANTS EARNING 50 OR BELOW THE AREA'S MEDIAN INCOME LEVEL IN EXCHANGE FOR FEDERAL CREDIT ENHANCEMENTS ON THE MORTGAGES WE THINK THE MARKET RISK IS NEGLIGIBLE BECAUSE WE THINK THERE IS AN INCREDIBLE PENTUP DEMAND FOR SUCH UNITS SAID MR BARRACK WHO ADDED THAT COLONY MIGHT EVENTUALLY SEEK TO SECURITIZE ITS LOANS ON THE BUILDINGS FOR RESALE TO INVESTORS IF THE APARTMENT SALES MARKET HAS RECOVERED BY THE TIME THE 12 REMAINING APARTMENT BUILDINGS PLANNED FOR THE SITE ARE BUILT MOST MAY BE SOLD AS CONDOMINIUMS OR COOPERATIVES HE SAID IF THE DEAL CANNOT BE COMPLETED BY YEAR END THE PARTIES WOULD HAVE TO RETURN TO THE TABLE TO HAMMER OUT A NEW DEAL 9312160115 931216 MEDIA CIGARETTE MAKER AND TIME AIM ADS AT SMOKERS BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL PHILIP MORRIS COS' HUGE DATABASE OF SMOKERS IS PLAYING AN INCREASINGLY IMPORTANT ROLE IN THE CIGARETTE GIANT'S MARKETING EFFORTS RAISING CONCERNS AMONG PRIVACY EXPERTS AND EVEN SMOKERS IN A TEST WITH TIME INC THAT IS THE MOST SOPHISTICATED USE YET OF ITS DATABASE PHILIP MORRIS IS TARGETING MAGAZINE ADS AT HARDCORE SMOKERS AND AVOIDING ADVERTISING TO NONSMOKERS FOR INSTANCE SUBSCRIBERS TO PEOPLE MAGAZINE WHO APPEAR ON PHILIP MORRIS'S LIST OF SMOKERS WILL RECEIVE A COPY OF THE MAGAZINE THAT CONTAINS TOBACCO ADS SUBSCRIBERS WHO AREN'T IN THE DATABASE WILL GET THE MAGAZINE WITHOUT THE PHILIP MORRIS ADS THE TEST IS BEING CONDUCTED WITH SOME DECEMBER ISSUES OF TIME INC'S TIME PEOPLE AND SPORTS ILLUSTRATED MAGAZINES PHILIP MORRIS AND TIME INC A UNIT OF TIME WARNER INC WOULDN'T COMMENT ON THE EXPERIMENT PHILIP MORRIS AND RJR NABISCO HOLDINGS CORP THE TOBACCO MARKET LEADERS ARE RELYING MORE AND MORE ON PERSONAL INFORMATION ABOUT THEIR CUSTOMERS AS PRESSURE GROWS TO FURTHER RESTRICT CIGARETTE ADVERTISING DEEP IN THEIR HEARTS THEY KNOW CIGARETTE ADVERTISING ULTIMATELY WILL BE BANNED SAYS MARTIN WALKER HEAD OF WALKER COMMUNICATIONS A MAGAZINE CONSULTING FIRM IN NEW YORK PHILIP MORRIS HAS BEEN AGGRESSIVELY HARVESTING SMOKERS' NAMES IN RECENT YEARS AND NOW HAS THE HOME ADDRESSES OF 26 MILLION SMOKERS STORED IN COMPANY COMPUTERS THE COMPANY COLLECTS NAMES BY A VARIETY OF METHODS IN ORDER TO GET MORE GEAR IN THE WORDS OF A PHILIP MORRIS PROMOTION FOR THE ADVENTURE TEAM SMOKERS MUST PROVIDE THE COMPANY WITH DETAILED PERSONAL INFORMATION THE COMPANY THEN USES THE NAMES TO MARKET CIGARETTES DIRECTLY TO SMOKERS OFTEN WITH COUPONS AND SPECIAL OFFERS THE LIST IS ALSO USED TO ENLIST SMOKERS TO LOBBY AGAINST HIGHER CIGARETTE TAXES THE NEW TARGETED APPROACH COULD HELP DEFLECT CHARGES THAT TOBACCO COMPANIES TRY TO RECRUIT NEW SMOKERS CRITICS HAVE CLAIMED THAT PERVASIVE BILLBOARD AND PRINT ADS APPEAL TO TEENAGERS AND ARE A BID TO TURN NONSMOKERS INTO SMOKERS EVEN SO THE TOBACCO COMPANIES' COMPUTER FILES TROUBLE ANTISMOKING ACTIVISTS THEY SAY MAILING COUPONS TO PEOPLE AT HOME MAKES IT EVEN HARDER FOR PEOPLE TO QUIT SMOKING IT IS A VERY INSIDIOUS REINFORCEMENT OF A HABIT THAT THE MAJORITY OF SMOKERS WISH THEY DIDN'T HAVE SAYS MICHAEL ERIKSEN DIRECTOR OF THE OFFICE ON SMOKING HEALTH AT THE CENTERS FOR DISEASE CONTROL AND PREVENTION EVEN SMOKERS ARE CONCERNED THAT BEING INCLUDED ON SUCH A LIST COULD HAVE UNINTENDED NEGATIVE CONSEQUENCES IT CONCERNS ME THAT THE DATA WILL FALL INTO THE WRONG HANDS SAYS DAVID BRENTON A VICE PRESIDENT OF THE UNITED SMOKERS ASSOCIATION AN ORGANIZATION FOR SMOKERS' RIGHTS IT'S A TROUBLING PRIVACY ISSUE FOR INSTANCE MR BRENTON SAYS SOME EMPLOYERS DON'T HIRE SMOKERS AN INSURANCE COMPANY MIGHT ALSO BE INTERESTED IN A LIST OF SMOKERS MR BRENTON SAYS A SMOKING CESSATION PRODUCTS COMPANY HAS ALREADY BOUGHT LISTS OF SMOKERS FOR MARKETING PURPOSES FROM A MARKET RESEARCH FIRM PRIVACY EXPERTS AGREE THAT BEING BRANDED A SMOKER COULD BE DAMAGING I WOULD BE CONCERNED ABOUT BEING ON THAT DATABASE SAYS EVAN HENDRICKS EDITOR OF THE PRIVACY TIMES A WASHINGTON NEWSLETTER A PHILIP MORRIS SPOKESWOMAN FLATLY REJECTS SUCH SECURITY CONCERNS AND SAYS THE LIST IS A CLOSELY GUARDED SECRET SHE ADDS THAT PHILIP MORRIS DOES NOT SELL ITS NAMES DESPITE HIS CONCERNS MR BRENTON THE SMOKER'S ADVOCATE VOUCHES THAT THOSE COMPANIES GUARD THOSE LISTS WITH THEIR LIVES MR BRENTON HAS REPEATEDLY ASKED FOR THE LIST TO ENLIST SMOKERS' ADVOCATES ONLY TO BE FLATLY DENIED IN MARCH PHILIP MORRIS CONTACTED SMOKERS IN ITS FILES AND PATCHED THEM THROUGH TO CAPITOL HILL TO COMPLAIN ABOUT THE PROPOSED SHARP INCREASE IN THE CIGARETTE TAX THE DELUGE OF CALLS SEEMED TO BE A SPONTANEOUS OUTBURST AND GAVE THE APPEARANCE OF A GROUNDSWELL OF GRASSROOTS OPPOSITION TO HIGHER CIGARETTE TAXES FEW DETAILS OF THE TIME INC TEST COULD BE LEARNED PHILIP MORRIS WILL NOT PRODUCE SPECIAL ADVERTISEMENTS FOR THE TEST SO IT ISN'T CLEAR HOW THE COMPANY WILL MEASURE THE EFFICACY OF THE CAREFULLY TARGETED ADS THE COMPANY WILL ADVERTISE ONLY ONE BRAND IN EACH PUBLICATION THE INDUSTRY'S SPENDING ON BILLBOARD MAGAZINE AND BUSSHELTER ADVERTISING HAS PLUNGED 43 FROM 1988 TO 3814 MILLION IN 1992 ACCORDING TO COMPETITIVE MEDIA CIGARETTE ADVERTISING IN MAGAZINES DROPPED ABOUT 16 TO 224 MILLLION LAST YEAR BUT TARGETING CUSTOMERS WITH A KNOWN PREFERENCE FOR A PRODUCT IS A MORE EFFECTIVE USE OF AN ADVERTISING BUDGET 9312160114 931216 TECHNOLOGY & ENVIRONMENT FRENCH PRODUCE FIRST MAP ORDERING DNA FRAGMENTS OF HUMAN GENOME BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL FRENCH SCIENTISTS SAID THEY PRODUCED THE FIRST PHYSICAL HUMAN GENOME MAP A PIECING TOGETHER OF DISASSEMBLED STRETCHES OF DNA THAT SHOULD ACCELERATE THE PACE OF GENE DISCOVERY THE FRENCH RESEARCHERS DESCRIBED THEIR ACCOMPLISHMENT AS A MAJOR MILESTONE IN GENETIC RESEARCH THE MAP ACCORDING TO THE FRENCH SCIENTISTS PROVIDES AN ORDERED SET OF DNA FRAGMENTS AND GUIDEPOSTS THAT SHOULD HELP GENEHUNTING SCIENTISTS HOME IN ON DISEASECAUSING GENES THAT CURRENTLY ARE UNKNOWN OR ARE UNIDENTIFIED DEOXYRIBONUCLEIC ACID OR DNA IS THE MOLECULE THAT CONTAINS ALL GENES WHILE SOME TOP GENEMAPPING SCIENTISTS PRAISED THE FRENCH EFFORT AND THE SPEED WITH WHICH IT WAS PRODUCED MANY SAID THE MAP WASN'T NEARLY AS DETAILED OR PRECISE AS RESEARCHERS WILL NEED TO PLUCK OUT A HIDDEN GENE AMONG THE 100000 OR SO GENES THAT MAKE UP THE HUMAN GENOME THE FRENCH ARE RESPONSIBLE FOR A GREAT DEAL OF VERY IMPORTANT PROGRESS SAID DAVID BOTSTEIN HEAD OF THE DEPARTMENT OF GENETICS AT STANFORD UNIVERSITY BUT WHAT THE FRENCH ARE ANNOUNCING IS NOT THE END OF THE GAME BY ANY MEANS I'M NOT SURE WHY THEY ARE ANNOUNCING IT AT THIS TIME EXCEPT PERHAPS TO LET RESEARCHERS KNOW THEY ARE MAKING THE INFORMATION AVAILABLE TO ALL WHO WANT IT THE SCIENTISTS WHO ANNOUNCED THE PHYSICAL MAP ARE AT THE CENTRE D'ETUDE DU POLYMORPHISME IN PARIS WHICH IS MORE COMMONLY KNOWN AS CEPH AND AT GENETHON A RELATED LABORATORY OUTSIDE PARIS CEPH WAS CREATED 10 YEARS AGO SPECIFICALLY TO CREATE A MAP OF GENETIC LANDMARKS TO GUIDE GENE SEARCHES CEPH HAS RECEIVED SOME US GOVERNMENT FUNDING AND HAS COLLABORATED WITH SCIENTISTS SEEKING TO ISOLATE GENES BUT THE LABORATORY HAS BEEN IN A RACE WITH US SCIENTISTS TO PRODUCE THE FIRST SUCH PHYSICAL MAP IN RECENT YEARS GENE HUNTERS HAVE BEEN AIDED BY A NEW TECHNOLOGY THAT CREATES LONG HIGHWAYS OF DNA MATERIAL SCIENTISTS CAN EXPLORE WHILE SEEKING A SPECIFIC GENE WHILE THESE LENGTHY BITS OF DNA ROADWAY OFTEN CONTAIN DOZENS OR HUNDREDS OF GENES THAT CAN TAKE YEARS TO PROBE INDIVIDUALLY HAVING THE DNA FRAGMENT IN HAND HAS BEEN A BOON SUCH FRAGMENTS HELPED SCIENTISTS WHO RECENTLY FOUND A NEW GENE THAT CAUSES ONE IN SIX CASES OF COLON CANCER ONE MAJOR STUMBLING BLOCK HAS BEEN THE INABILITY TO KNOW WHERE EXACTLY IN THE GENOME THESE BITS OF DNA HIGHWAY ARE LOCATED THIS IS MUCH LIKE KNOWING THAT NEW JERSEY HAS CERTAIN HIGHWAYS BUT NOT KNOWING THROUGH WHICH TOWNS THEY LEAD OR HOW THEY CONNECT IN ITS ANNOUNCEMENT MADE IN PARIS YESTERDAY AND PUBLISHED IN TODAY'S ISSUE OF THE BRITISH JOURNAL NATURE THE CEPH TEAM SAID THEY SUCCEEDED IN ORDERING THE DNA FRAGMENTS FOR ABOUT 90 OF THE HUMAN GENOME LIKE ANY FIRST MAP IT WILL REQUIRE FURTHER STUDY AND REFINEMENT SAID DANIEL COHEN WHO LED THE CEPH EFFORT DR COHEN SAID CEPH IS MAKING THE ENTIRE MAP AND COPIES OF THE ORDERED FRAGMENTS AVAILABLE TO RESEARCHERS FOR FREE THIS IS THE WORLD'S MAP NOT OURS DR COHEN SAID JAMES WATSON THE NOBEL LAUREATE WHO RAN THE US HUMAN GENOME PROJECT UNTIL LAST YEAR SAID CEPH SHOULD BE PRAISED FOR SHARING ITS MAP BUT ECHOING MANY GENE MAPPERS DR WATSON SAID THE MAP WAS INCOMPLETE WITH MANY HOLES IT'S NOT CLEAR THAT ALL OR MOST OF THE FRAGMENTS ARE EVEN IN THE RIGHT ORDER SOME SCIENTISTS DESCRIBED THE CURRENT FRENCH VERSION AS SIMILAR TO AN AERIAL VIEW OF THE US WITH ALL THE STATES IN THE CORRECT POSITIONS MANY HOPE THAT WITHIN THE NEXT FEW YEARS A PRECISE MAP THAT COULD CARRY GENE HUNTERS TO THE SMALLEST AND FARTHEST REACHES OF THE GENETIC TOPOGRAPHY WILL BE PRODUCED THE US HUMAN GENOME PROJECT IS ACTUALLY SEEKING TO PRODUCE SEVERAL KINDS OF MAPS ONE MAP WHICH SOME BELIEVE MAY BE COMPLETED SOMETIME EARLY IN THE NEXT CENTURY WILL PROVIDE A SEQUENCING OF ALL THE ESTIMATED THREE BILLION CHEMICAL SUBUNITS OF DNA ANOTHER MAP PERHAPS EVEN FURTHER OFF WILL IDENTIFY THE LOCATION OF ALL GENES THE PHYSICAL MAP WILL LOCATE A SET OF ABOUT 30000 GENETIC LANDMARKS AS WELL AS AN ORDERED SET OF DNA FRAGMENTS 9312160113 931216 POLL FINDS PEROT'S STANDING WITH PUBLIC HAS SLIPPED WASHINGTON AMERICANS' FEELINGS TOWARD ROSS PEROT HAVE TURNED DECIDEDLY MORE SOUR A NEW WALL STREET JOURNAL/NBC NEWS POLL INDICATES ASKED WHETHER THEIR FEELINGS TOWARD MR PEROT HAVE CHANGED FROM A YEAR AGO 41 OF THOSE SURVEYED SAID THEY NOW HAVE A MORE NEGATIVE ATTITUDE TOWARD THE TEXAS BILLIONAIRE BY CONTRAST JUST 9 SAY THEY HAVE A MORE POSITIVE RATING WHAT'S MORE 57 OF THOSE SURVEYED SAY THERE IS NO CHANCE AT ALL THAT THEY WOULD SUPPORT MR PEROT IN A 1996 PRESIDENTIAL RUN ONLY 6 SAY THEY DEFINITELY WOULD SUPPORT MR PEROT AND 7 SAY THEY PROBABLY WOULD DO SO MR PEROT'S PERFORMANCE IN A NATIONALLY TELEVISED DEBATE WITH VICE PRESIDENT AL GORE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT MAY HAVE CONTRIBUTED TO THE DECLINE IN THE PUBLIC'S OPINION OF MR PEROT PRESIDENT CLINTON YESTERDAY SUGGESTED THAT IS THE CASE ASKED AT A NEWS CONFERENCE WHY MR PEROT'S RATINGS ARE DROPPING MR CLINTON REPLIED I CAN'T COMMENT ON THAT YOU OUGHT TO ASK THE VICE PRESIDENT ABOUT THAT 9312160112 931216 INTERNATIONAL PARLIAMENTARY ELECTIONS DIVIDING SERBS NASTY CAMPAIGNS REVEAL TRUE AIMS METHODS OF WAR BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL BELGRADE THROUGHOUT CROATIA AND BOSNIAHERZEGOVINA A SINGLE UBIQUITOUS SLOGAN IS SCRAWLED ACROSS A LANDSCAPE SCARRED BY WAR ONLY UNITY SAVES THE SERBS BUT IN ECONOMICALLY DEVASTATED SERBIA WHERE PARLIAMENTARY ELECTIONS ARE SCHEDULED FOR SUNDAY UNITY IS AS SCARCE AS TOOTHPASTE THIS GOVERNMENT CONSISTS OF CRIMINALS PROFITEERS AND THE FINANCIAL MAFIA SHOUTS VOJISLAV SESELJ THE PUDGY ULTRANATIONALIST LEADER OF THE SERBIAN RADICAL PARTY WHO IS GUNNING TO REPLACE THE GOVERNMENT OF SERBIAN PRESIDENT SLOBODAN MILOSEVIC IN RETURN MR MILOSEVIC'S SOCIALIST PARTY BRANDS MR SESELJ ONCE A CLOSE ALLY AS A WAR CRIMINAL FOR HAVING FORMED PARAMILITARY UNITS IN CROATIA AND BOSNIA AND COMMITTING CRIMES AGAINST MUSLIM CROAT AND SERB CIVILIANS FOR GOOD MEASURE THE SOCIALISTS ALSO ACCUSE MR SESELJ OF ARROGANCE AFTER 2 1/2 YEARS OF FIGHTING CROATS AND MUSLIMS THE SERBS ARE TURNING ON THEMSELVES WALLOWING IN AN ECONOMY UTTERLY RUINED BY INTERNATIONAL SANCTIONS AND THE COSTS OF FINANCING THE WAR A FIVE BILLION DINAR NOTE ISN'T ENOUGH TO BUY A SANDWICH IN BELGRADE SERBS ARE DESPERATELY LASHING OUT AT ONE ANOTHER WHEN MR SESELJ CALLED A PARLIAMENTARY VOTE OF NOCONFIDENCE AGAINST THE GOVERNMENT FOR MISHANDLING THE ECONOMY MR MILOSEVIC DISSOLVED PARLIAMENT AND CALLED ELECTIONS AMID THE BITTER FIGHT FOR VOTES THE SERBS HAVE BECOME THEIR OWN WORST ENEMIES EXPOSING ON THEIR OWN THE TWO BIG LIES PROPAGATED BY BELGRADE THROUGHOUT THE WAR IN THE FORMER YUGOSLAVIA THE CAMPAIGN IS REVEALING IN SERB LEADERS OWN WORDS THAT FIRST SERBS FROM SERBIA HAVE INDEED COMMITTED WAR CRIMES IN CROATIA AND BOSNIA AND SECOND THAT THE GOAL OF THE SERBIAN AUTHORITIES ALL ALONG HAS BEEN THE CREATION OF A GREATER SERBIA AFTER MR MILOSEVIC AND MR SESELJ WERE NAMED LAST YEAR BY THE US STATE DEPARTMENT AS POSSIBLE WAR CRIMINALS SERB LEADERS INDIGNANTLY DENIED THAT SERBIAN FORCES WERE INVOLVED IN ANY ATROCITIES NOW MR MILOSEVIC IS HIMSELF WRITING THE INDICTMENT AGAINST MR SESELJ HOPING TO EXTRICATE HIS OWN NECK FROM THE NOOSE BUT INSTEAD THE NOOSE IS GETTING TIGHTER WITH MR SESELJ ACCUSING THE PRESIDENT OF COMPLICITY SERBIAN AUTHORITIES HAVE ARRESTED DOZENS OF MEMBERS OF THE CHETNIK MOVEMENT THE ARMED WING OF MR SESELJ'S RADICAL PARTY ON CHARGES INCLUDING MURDER RAPE AND ILLEGAL ARMS POSSESSIONS AND BELGRADE NEWSPAPERS HAVE FOR THE FIRST TIME PRINTED EYEWITNESS ACCOUNTS OF SERB ATROCITIES IN CROATIA AND BOSNIA MIRKO JOVICEVIC A WAR REPORTER FOR THE OFFICIAL YUGOSLAV ARMY MAGAZINE WAS WIDELY QUOTED AS ACCUSING MR SESELJ'S PARAMILITARY FORCES OF MURDERS RAPES STABBINGS AND PLAYING SOCCER WITH CHOPPEDOFF HEADS HE SAID THEY LOOTED HOUSES STEALING GOLD JEWELRY AND FOREIGN MONEY AND EVEN EXTRACTED GOLD FILLINGS FROM THE TEETH OF LIVE VICTIMS IT GIVES ME THE CREEPS WHEN I REMEMBER THE ATROCITIES I SAW HE WAS QUOTED AS SAYING A REPORTER FOR THE BORBA NEWSPAPER IN BELGRADE WHO INTERVIEWED MR JOVICEVIC SAYS THE ARMY CORRESPONDENT WAS ENCOURAGED TO TALK BY THE COMMUNIST MOVEMENT OF YUGOSLAVIA A PARTY HEADED BY MR MILOSEVIC'S WIFE MR MILOSEVIC ONCE CALLED MR SESELJ HIS FAVORITE OPPOSITION POLITICIAN AND PRAISED HIS CONSISTENT NATIONAL POLICY WHILE BLASTING OTHER POLITICIANS AS TRAITORS FOR PRESSING FOR PEACE IN CROATIA AND BOSNIA THUS THE MORE MR MILOSEVIC NOW ATTACKS HIS FORMER ALLY THE MORE HE SEEMS TO BE IMPLICATING HIMSELF CAMPAIGNING AROUND THE COUNTRY MR SESELJ SAYS THAT THE CRIMES OF WHICH HE IS BEING ACCUSED COULDN'T HAVE TAKEN PLACE WITHOUT MILOSEVIC'S KNOWLEDGE AND AGREEMENT MR MILOSEVIC AND HIS SOCIALIST PARTY THE OLD COMMUNIST PARTY ARE COURTING VOTERS WITH A FERVENTLY NATIONALIST CAMPAIGN BLAMING THE ECONOMIC MESS ON WESTERN POWERS INTENT ON BRINGING SERBIA TO ITS KNEES AND SAYING IT IS THE COST THAT MUST BE PAID TO ACHIEVE A GREATER SERBIA IN FACT ALL THE MAJOR PARTIES WHETHER LEFT OR RIGHT NATIONALIST OR PACIFICST ARE CAMPAIGNING IN FAVOR OF UNIFYING CONQUERED LANDS IN CROATIA AND BOSNIA WITH MOTHER SERBIA PREVIOUSLY THE MILOSEVIC FORCES HAVE INSISTED THAT THE REASON FOR THE WAR WAS TO PROTECT SERB MINORITIES FROM GENOCIDE AT THE HANDS OF NATIONALIST GOVERNMENTS IN THE BREAKAWAY STATES OF CROATIA AND BOSNIA NOW THEY CLAIM THEY ARE NEARING A HISTORIC VICTORY IN THE AGEOLD CRUSADE TO UNITE ALL SERBS IN ONE COUNTRY WE ARE COMING TO THE END OF OUR TRIUMPHANT MARCH MR MILOSEVIC'S FOREIGN MINISTER VLADISLAV JOVANOVIC ANNOUNCED AT A TELEVISED CAMPAIGN RALLY THE SERBIAN TWOCENTURIESOLD DREAM IS ABOUT TO COME TRUE ON THIS THE GOVERNMENT IS EVEN FORMING A PATRIOTIC ALLIANCE WITH ARKAN A PARAMILITARY LEADER WHOSE FULL NAME IS ZELJKO RAZNATOVIC HEAD OF THE SERBIAN UNITY PARTY ARKAN ALSO ACCUSED BY THE STATE DEPARTMENT OF COMMITTING WAR CRIMES THROUGH HIS MILITIA UNIT ELECTRIFIES CAMPAIGN RALLIES WITH HIS CALLS FOR A UNITED STATES OF SERBIA WE SHARE THE SAME PATRIOTIC GOALS SAYS BRANISLAV POPOVIC A SOCIALIST PARTY SPOKESMAN WE BOTH WANT A UNIFIED SERBIA MAYBE THE MAIN DIFFERENCE IS THAT ARKAN WOULD LIKE TO DO IT IMMEDIATELY AND WITH MILITARY ACTION THE GOVERNMENT HE SAYS IS WILLING TO WAIT UNTIL THE CONCLUSION OF THE BOSNIAN PEACE TALKS IN GENEVA BUT IN GENEVA FAR FROM THE CAMPAIGN TRAIL MR MILOSEVIC AND HIS NEGOTIATORS CONTINUE TO DENY THAT A GREATER SERBIA WILL BE BUILT ON THE RUINS OF BOSNIA THEY SAY IT IS A LIE PROPAGATED BY THEIR NATION'S ENEMIES 9312160111 931216 AZTEC TO POST GAINS CROWLEY TEXAS AZTEC MANUFACTURING CO SAID ITS EARNINGS FOR THE THIRD QUARTER ENDED NOV 30 TRIPLED TO SIX CENTS A SHARE FROM TWO CENTS A SHARE LAST YEAR THE ELECTRICAL PRODUCTS MANUFACTURER ALSO SAID FOURTHQUARTER PROFIT WOULD INCREASE AND ATTRIBUTED THE EARNINGS RISE TO A CORPORATE RESTRUCTURING BEGUN IN 1990 AZTEC SAID IT PLANS TO RELEASE ITS THIRDQUARTER EARNINGS NEXT WEDNESDAY 9312160110 931216 PEPPERAND SALT BY BUILDING A BETTER MOUSE FAR BEYOND DAD'S MEANS BERMUDA RACE WINNER SLOOP DU JOUR 9312160109 931216 MARKETING & MEDIA GENERAL MILLS' PROFIT RISE DOESN'T MEET PROJECTIONS FOR FISCAL SECONDQUARTER BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL MILLS INC BLAMING DISAPPOINTING BREAKFASTCEREAL SALES REPORTED A LOWERTHANPROJECTED EARNINGS GAIN FOR ITS FISCAL SECOND QUARTER AND SAID FULLYEAR RESULTS WON'T MEET INITIAL OBJECTIVES THE SECONDLARGEST CEREAL MAKER IN THE US ALSO HINTED IT WOULD ENGAGE IN A PROMOTION WAR IF NECESSARY TO BOOST SALES DESPITE ITS ANNOUNCED DESIRE TO REDUCE RELIANCE ON COUPONING AND OTHER DISCOUNTING METHODS THAT NOW DRIVE THE NATION'S 8 BILLION BREAKFASTCEREAL MARKET NET INCOME FOR THE 13 WEEKS ENDED NOV 28 ROSE 2 TO 1407 MILLION OR 88 CENTS A SHARE COMPARED WITH 1381 MILLION OR 85 CENTS A SHARE A YEAR EARLIER SALES ROSE 41 TO 22 BILLION FROM 21 BILLION THE LATEST PERSHARE RESULTS BASED ON 45 MILLION FEWER SHARES OUTSTANDING WERE AT THE LOW END OF WALL STREET EXPECTATIONS ACCORDING TO ZACKS INVESTMENT RESEARCH INC ANALYSTS WERE LOOKING FOR A MEAN OF 91 CENTS ALTHOUGH IN RECENT DAYS THE COMPANY WAS ADVISING THEM THAT THE FIGURE WAS TOO HIGH YESTERDAY SHARES OF THE FOOD COMPANY IN MINNEAPOLIS CLOSED DOWN 375 CENTS AT 6025 A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING GENERAL MILLS SAID THAT WHILE EARNINGS FOR THE SECOND QUARTER AND FIRST HALF WERE RECORDS THEY DIDN'T MEET THE COMPANY'S OBJECTIVES THE SHORTFALLS WERE ATTRIBUTED TO A 5 VOLUME DECLINE IN ITS BIG G CEREALS DIVISION ITS LARGEST PROFIT CENTER THE COMPANY CITED EXTRAORDINARILY HIGH COMPETITIVE PROMOTIONAL EFFORTS IN THE CEREALS SECTOR DURING SEPTEMBER THROUGH NOVEMBER A PERIOD IN WHICH GENERAL MILLS UNDERTAKES AN ANNUAL PROMOTION CAMPAIGN THIS YEAR ARCHRIVAL KELLOGG CO AND OTHER CEREAL MAKERS APPARENTLY BOOSTED THEIR MARKETING EXPENDITURES TO BLUNT THAT CAMPAIGN COSTING GENERAL MILLS SOME CEREAL SALES GENERAL MILLS SAID ITS SHARE OF THE US CEREAL MARKET REMAINED AT 29 IN THE QUARTER OVERALL THE CONSUMER FOODS GROUP REPORTED SALES UP 2 FOR THE QUARTER WITH OPERATING EARNINGS UP 1 GENERAL MILLS' RESTAURANTS GROUP REPORTED AN 8 GAIN IN SALES AND A 9 IMPROVEMENT IN OPERATING EARNINGS LED BY THE RED LOBSTER SEAFOOD CHAIN THE COMPANY ALSO SAID IT WILL BUILD 16 MORE CHINA COAST RESTAURANTS ITS FLEDGLING ASIANFOOD VENTURE BY MAY CHAIRMAN AND CHIEF EXECUTIVE OFFICER H BREWSTER ATWATER JR SAID THAT WHILE GENERAL MILLS STILL EXPECTS TO REPORT RECORD FULLYEAR RESULTS THE RATE OF INCREASE WILL LIKELY FALL SHORT OF INITIAL EXPECTATIONS THE COMPANY SAID THAT SECONDHALF BIG G CEREAL VOLUME WILL BE POSITIVELY INFLUENCED BY FULLY MEETING FUTURE COMPETITIVE PROMOTIONAL EFFORTS AND BY ADDITIONAL NEW PRODUCT INTRODUCTIONS INDICATING AN APPARENT WILLINGNESS TO USE COUPONING AND OTHER TRADITIONAL SALESBOOSTING METHODS TO RESTORE CEREALS' SALES MOMENTUM FOR THE SIX MONTHS THE COMPANY REPORTED EARNINGS ROSE 3 TO 3065 MILLION OR 192 A SHARE COMPARED WITH 2977 MILLION OR 182 A SHARE A YEAR EARLIER SALES ROSE 38 TO 43 BILLION FROM 41 BILLION SEPARATELY GENERAL MILLS INTRODUCED A PRESWEETENED CEREAL FOR KIDS CALLED HIDDEN TREASURES FEATURING PILLOWSHAPED PIECES SOME OF WHICH HAVE FRUIT CENTERS INITIALLY IT WILL BE SOLD IN THE EASTERN US 9312160108 931216 INTERNATIONAL EUROPE OPERATIONS AT GM FORD SHOW MARKET GAINS BONN THE EUROPEAN OPERATIONS OF GENERAL MOTORS CORP AND FORD MOTOR CO POSTED HEALTHY GAINS IN MARKET SHARE FOR NOVEMBER HELPED BY POPULAR RECENT PRODUCTS AND STRONG REPRESENTATION IN THE RECOVERING BRITISH MARKET MEANWHILE VOLKSWAGEN AG SUSTAINED THE HARDEST BLOWS AMONG EUROPEAN CAR MAKERS LAST MONTH SHOWING THE SHARPEST DROPS IN UNIT CAR SALES AND MARKET SHARE THE WESTERN EUROPEAN MARKET AS A WHOLE DECLINED 101 WITH SALES FALLING TO 868300 UNITS FROM 965970 UNITS A YEAR EARLIER ACCORDING TO REVISED FIGURES ISSUED BY THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION IN BRUSSELS IN THE FIRST 11 MONTHS OF THE YEAR THE MARKET FELL 148 TO 107 MILLION UNITS BUT VW SAW SALES PLUNGE 188 IN NOVEMBER AND A STEEPER 203 FOR THE 11 MONTHS IN NOVEMBER THE COMPANY'S MARKET SHARE TUMBLED TO 159 FROM 177 GM SALES FELL ONLY 6 IN NOVEMBER AND ITS MARKET SHARE ADVANCED TO 133 FROM 128 FORD SAW SALES RISE 03 AS ITS MARKET SHARE ROSE TO 112 FROM 10 FORD'S MONDEO MODEL HAS FARED WELL WHILE CONTINUED ROBUST SALES OF GM'S NEW OPEL CORSA HAVE HELPED GM PERFORM BETTER THAN EXPECTED 9312160107 931216 SECURITIES HEARING ON 1992 LAWSON ISSUE IS SLATED FOR TODAY TORONTO THE ONTARIO SECURITIES COMMISSION PLANS TO HOLD A HEARING TODAY INTO ALLEGATIONS THAT THE LARGEST SHAREHOLDER OF LAWSON MARDON GROUP LTD MANIPULATED THE PRICE OF THE COMPANY'S STOCK PRIOR TO A 1992 EQUITY ISSUE OFFICIALS AT THE COMMISSION ALLEGE THAT SERGIO CRAGNOTTI ROBERTO MARZIALE AND CRAGNOTTI & PARTNERS CANADA INC TRADED THROUGH NOMINEE ACCOUNTS CREATING A FALSE AND MISLEADING APPEARANCE OF TRADING ACTIVITY AND AN ARTIFICIAL PRICE IN THE SECURITIES OF LAWSON MARDON CRAGNOTTI & PARTNERS A UNIT OF ITALIAN MERCHANT BANK CRAGNOTTI & PARTNERS CAPITAL INVESTMENT SA HAS A 32 STAKE IN LAWSON MARDON A PRINTING AND PACKAGING CONCERN BASED IN MISSISSAUGA ONTARIO MR CRAGNOTTI IS CHAIRMAN OF THE ITALIAN CONCERN WHILE MR MARZIALE IS A SENIOR OFFICER OF THE BANK AND SOLE DIRECTOR OF ITS CANADIAN UNIT AN OSC OFFICIAL SAID MR CRAGNOTTI AND MR MARZIALE AND CRAGNOTTI & PARTNERS ARE EXPECTED TO SUBMIT A SETTLEMENT OFFER TO THE COMMISSION THE COMMISSION SAID ITS STAFF HAS NO REASON TO BELIEVE THAT ANY OTHER OFFICER OR DIRECTOR OF LAWSON MARDON WAS INVOLVED IN OR AWARE OF THE ALLEGED ACTIVITIES ACCORDING TO THE COMPANY'S 1992 ANNUAL REPORT MR CRAGNOTTI IS A DIRECTOR SERGIO MARCHIONNE CHIEF FINANCIAL OFFICER OF THE PACKAGING CONCERN SAID LAWSON MARDON'S BUSINESSES AND OPERATIONS ARE NOT AFFECTED BY THIS OSC ACTION AND THE COMPANY HAS COOPERATED WITH REGULATORS ALUSUISSELONZA HOLDINGS LTD WHICH OFFERED 555 MILLION CANADIAN DOLLARS US4161 MILLION OR C14 US1050 A SHARE TO ACQUIRE ALL THE SHARES OUTSTANDING OF LAWSON MARDON WAS AWARE OF THE INVESTIGATION BEFORE ITS BID MR MARCHIONNE SAID CRAGNOTTI & PARTNERS HAS AGREED TO TENDER ITS STAKE JOHN STRANSMAN A TORONTO SECURITIES LAWYER REPRESENTING CRAGNOTTI & PARTNERS SAID THE SETTLEMENT OFFER WAS REACHED TO FACILITATE THAT TRANSACTION 9312160106 931216 LETTERS TO THE EDITOR THE COURAGE TO SHUN WELFARE YOUR NOV 12 PAGEONE ARTICLE THE WORKING POOR WAS QUITE ILLUSTRATIVE OF THE PROBLEMS MANY HARDWORKING AMERICANS FACE TODAY BRIAN DEYO BONNIE BUSKEY AND GARTH SHANNON ARE REAL HEROES FOR STRUGGLING TO OVERCOME THE OBSTACLES THEY FACE EACH DAY THEIR CONTINUING TO WORK DESPITE THE FACT THAT THEIR GOVERNMENT ENCOURAGES THEM TO JOIN THE WELFARE ROLLS IS A TRIBUTE TO THEIR FORTITUDE NO ONE COULD HAVE STATED IT BETTER THAN MS BUSKEY WHO SAID THE MESSAGE FROM THE GOVERNMENT SEEMS TO BE STAY HOME VEGETATE IN FRONT OF THE TV AND YOU'LL BE BETTER OFF' HER STATEMENT IS AN ACCURATE REFLECTION ON TODAY'S FEDERAL AND STATE WELFARE AND TAX POLICIES IF MY CALCULATIONS ARE CORRECT MR DEYO WAS EARNING 220 A WEEK BUT TAKING HOME ONLY 188 A WEEK IN ADDITION TO THE 32 A WEEK HE IS PAYING IN PAYROLL AND INCOME TAXES I AM SURE HIS EMPLOYER IS PAYING ANOTHER 8 TO 10 IN STATE AND FEDERAL PAYROLL TAXES WHICH IS ABOUT 20 THE COST TO MR DEYO'S EMPLOYER FOR A WEEK OF WORK IS 240 THE GOVERNMENT TAKES 52 OR 22 AND LEAVES MR DEYO WITH 188 A FAMILY AT AN INCOME LEVEL OF 10000 SHOULD NOT BE TAXED AT A 22 RATE IN ADDITION AS MS BUSKEY POINTS OUT INSTEAD OF PHASING OUT MEDICARE AND WELFARE BENEFITS THE GOVERNMENT TELLS THE WORKING POOR THAT THEY DO NOT QUALIFY FOR ANY BENEFITS INSTEAD OF REDUCING BENEFITS THE GOVERNMENT INCREASES THE BURDEN ON THOSE PEOPLE WHO CHOOSE TO WORK BY ELIMINATING ALL OF THEIR BENEFITS NEW YORK CITY HAS THE MOST LIBERAL SOCIAL WELFARE POLICIES IN THIS COUNTRY IT HAS THE HIGHEST PAYROLL AND INCOME TAXES OF ANY CITY IN AMERICA TODAY ONE OUT OF SEVEN NEW YORK CITY RESIDENTS ARE ON WELFARE GOVERNMENT MUST START TO REWARD THOSE WHO WORK INSTEAD OF PUNISHING THEM PAYROLL TAXES SHOULD BE ELIMINATED FOR THE EMPLOYER AND THE EMPLOYEE ON THE FIRST 10000 OF ANNUAL WAGES THIS 10000 FIGURE SHOULD BE INDEXED TO INFLATION JUST AS CONGRESSIONAL PAY RAISES ARE INDEXED TO INFLATION IF IT'S GOOD ENOUGH FOR CONGRESS IT IS GOOD ENOUGH FOR AMERICANS WHO REALLY WORK THIS COULD BE PAID FOR BY REDUCING WELFARE BENEFITS CUTTING OTHER GOVERNMENT PROGRAMS AND/OR RAISING THE LEVEL OF INCOME SUBJECT TO PAYROLL TAXES WHICH IS CURRENTLY 57600 THE DISMAL PLIGHT OF BRIAN DEYO GARTH SHANNON AND THOUSANDS OF OTHER WORKERS AND WOULDBE WORKERS IN VERMONT IS A DIRECT RESULT OF THE STATE'S LONGSTANDING INDUSTRIAL POLICY VERMONT IS BASICALLY ANTIBUSINESS DOES NOT WANT MANUFACTURING JOBS AND DOES NOTHING TO PROMOTE MEANINGFUL ECONOMIC DEVELOPMENT THUS THOUSANDS OF NORTHEAST KINGDOM WORKERS AND WOULDBE WORKERS HAVE NOWHERE TO TURN BUT TO MARGINAL SERVICE JOBS NOTECH HOCKEY STICK FACTORIES MAPLE PRODUCTS COMPANIES AND OF COURSE BEN & JERRY'S WHILE THESE MAY BE FINE AND USEFUL BUSINESSES THEY ARE NOT THE BUILDING BLOCKS OF A SUSTAINABLE JOBPRODUCING INDUSTRIAL BASE VERMONT IS A MOST HOSPITABLE PLACE FOR ITS HOMEGROWN ECOLOGISTS AND AN ELITE CORPS OF REFUGEES FROM BOSTON AND NEW YORK WHO HAVE BROUGHT THEIR MONEY WITH THEM THESE ARE THE FOLK WHO HAVE PLACED THEIR GREEN POLITICAL STAMP ON THAT STATE'S LAGGING ECONOMY NOTHING WILL IMPROVE THE FUTURE OF VERMONT'S WORKING POOR UNTIL THE STATES SHEDS ITS LUDDITE MINDSET YOUR ARTICLE DESCRIBES A PHENOMENON THAT SEEMS TO HAVE ESCAPED THE NOTICE OF ALL THOSE EMINENT ECONOMISTS AND POLITICIANS WHO TELL US DAILY THAT INFLATION IS UNDER CONTROL AND NO LONGER A PROBLEM YET FOR THIS GROUP WHICH IS CLINGING BY ITS FINGERTIPS TO ECONOMIC SURVIVAL EVEN THE CURRENT 3 INFLATION CAN SLICE OFF NEARLY A QUARTER OF ITS PURCHASING POWER OVER 10 YEARS ASSUMING NO INCREASE IN INCOME IF A STRENGTHENING ECONOMY RAISES INFLATION TO 5 ANNUALLY THE LOSS OF PURCHASING POWER IS NEARLY 40 IN 10 YEARS NO PROBLEM PERHAPS FOR PEOPLE WITH RAPIDLY RISING INCOMES OR FOR THOSE IN HIGH INCOME BRACKETS BUT DEVASTATING TO THE WORKING POOR OVER TIME THE MIDDLE CLASS IS ALSO HURT RAISING THE MINIMUM WAGE AND INDEXING IT TO INFLATION AS SOCIALISTLEANING REP BERNARD SANDERS ADVOCATES IS NOT ONLY THE JOB KILLER HIS OPPONENTS POINT OUT BUT MINIMUM WAGE HIKES HAVE ALWAYS LAGGED BEHIND THE INFLATION CURVE ADVANCED INDUSTRIAL NATIONS HAVE ENOUGH OF A CHALLENGE FROM THE RAPIDLY DEVELOPING THIRD WORLD WITHOUT FURTHER IMPAIRING THEIR COMPETITIVENESS BECAUSE OF CONSTANT MINIMUM WAGE HIKES SURELY THE RIGHT SOLUTION IS TO REDUCE INFLATION TO ZERO INFLATION IS NOT AN ACT OF GOD BUT A MANMADE PHENOMENON INDEED SWITZERLAND JAPAN AND A FEW OTHER ADVANCED INDUSTRIAL COUNTRIES HAVE MANAGED THE FEAT OF ZERO INFLATION AT LEAST FOR A TIME THE FISCAL AND MONETARY TOOLS TO ACHIEVE ZERO INFLATION ARE WELLKNOWN ALL IT TAKES IS SUPPORT FROM OUR CONCERNED POLITICIANS AND THE WILL TO ACHIEVE IT THIS MORNING FOR THE FIRST TIME IN MY 25 YEARS OF JOURNAL READING I HAD TEARS IN MY EYES YOUR STORY ON THE WORKING POOR OF THE NORTHEAST KINGDOM WAS THAT GOOD AS WE CONSIDER THE DOOMED SIMPLISTIC SOLUTIONS OF THE CLINTON ADMINISTRATION AND THE EVEN MORE EGREGIOUS SIMPLICITY OF THE REPUBLICANS' DO NOTHING RESPONSE I WILL THINK OF THE COMPLEXITY OF A FAMILY'S DECISION OF WHETHER TO SPEND 20 FOR A WEEK'S FOOD OR FOR A WEEK'S HEAT PRAY OUR REPRESENTATIVES IN WASHINGTON ARE AS WISE OR THEIR JUDGMENTS AS INFORMED BY A REAL UNDERSTANDING OF LIFE'S MORAL IMPERATIVES YOU HAVE ADDRESSED AN ISSUE THAT THE LIBERAL POLICY MAKERS IN WASHINGTON CONTINUE TO MISINTERPRET AND WHOSE SOLUTIONS CONTINUE TO FAIL THEY HAVE EFFECTIVELY CREATED OVER THE PAST 30 YEARS A SOCIAL WELFARE SYSTEM THAT REWARDS FAILURE PENALIZES SUCCESS AND MOST IMPORTANT ATTEMPTS TO STRIP AWAY THE RUGGED INDIVIDUALISM THAT MADE OUR COUNTRY THE GREATEST IN THE WORLD THIS HAS BEEN ACCOMPLISHED BY ENCOURAGING COURAGEOUS HARDWORKING AMERICANS TO RELY ON THE FEDERAL AND STATE GOVERNMENTS FOR THEIR ECONOMIC SURVIVAL UNLIKE MANY OF OUR ELECTED OFFICIALS AND POLICY MAKERS I HAVE LICENSE TO SAY THIS BECAUSE I WITNESS THIS FAILURE IN MY OWN COMPANY EVERY DAY OF MY LIFE I AM THE PRESIDENT OF A SUCCESSFUL SMALL COMPANY RETAIL PHARMACY AND HOME HOSPITAL EQUIPMENT IN A SEVERELY ECONOMICALLY DEPRESSED OLD STEEL MILL TOWN NEAR PITTSBURGH EVERY DAY I SEE PROUD HARDWORKING PEOPLE SUCCUMB TO THE TEMPTATION OF A LIFE OF GOVERNMENT DEPENDENCE BY GIVING UP THEIR MINIMUM WAGE JOBS AND WITH THEM PART OF THEIR SOULS THESE PEOPLE WORK DILIGENTLY DOING JOBS THAT MOST OF US WOULD NEVER CONSIDER AND THEY WATCH THEIR NEIGHBORS WHO STAY HOME LIVING OFF THE GOVERNMENT CONTINUE TO BE ECONOMICALLY BETTER OFF I BELIEVE IN THE SHANNONS OF OUR COUNTRY AND ADMIRE THEIR COURAGE TO SHUN THESE PROGRAMS 9312160105 931216 TECHNOLOGY & ENVIRONMENT US PROPOSALS WOULD FORCE CALIFORNIA TO REDIRECT WATER RESOURCES TO WILDLIFE BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL GOVERNMENT WADING INTO THE WEST'S WATER WARS AS NEVER BEFORE HAS PROPOSED NEW REGULATIONS THAT WOULD FORCE CALIFORNIA TO REDIRECT SOME OF ITS PRECIOUS WATER RESOURCES TOWARD WILDLIFE AT THE EXPENSE OF AGRICULTURE THE FOUR FEDERAL AGENCIES THAT CONTROL MUCH OF FEDERAL WATER POLICY ISSUED WATERQUALITY STANDARDS FOR CALIFORNIA'S SAN FRANCISCO BAY DELTA THAT WILL REQUIRE LESS PUMPING FROM THE DELTA MOST OF THE REDUCTIONS ARE LIKELY TO COME FROM FARMS THE AGENCIES ALSO PROPOSED SETTING ASIDE A LARGE AMOUNT OF WATER THAT WOULD HAVE GONE TO FARMERS THE WATER WILL BE USED INSTEAD TO HELP RESTORE RIVER AND ESTUARY HABITAT THAT HAS BEEN DEVASTATED BY HEAVY PUMPING IN RECENT YEARS LEADING TO NEAREXTINCTION FOR SEVERAL FISH SPECIES THE SAN FRANCISCO BAY DELTA IS THE SOURCE OF DRINKING WATER FOR 20 MILLION OF CALIFORNIA'S 30 MILLION PEOPLE AND PROVIDES IRRIGATION WATER FOR HUNDREDS OF THOUSANDS OF ACRES OF FARMLAND HOWEVER IRRIGATION CONSUMES FAR MORE WATER THAN URBAN USE AGRICULTURE SOPS UP ABOUT 80 OF THE WATER USED IN CALIFORNIA THE AGENCIES ALSO PROPOSED GRANTING OR UPGRADING PROTECTIONS UNDER FEDERAL WILDLIFE LAWS TO TWO FISH SPECIES THE MINNOWLIKE CALIFORNIA SPLITTAIL AND THE WINTERRUN CHINOOK SALMON WHOSE POPULATIONS HAVE PLUNGED IN RECENT YEARS BECAUSE OF HEAVY PUMPING IN THE DELTA THOSE ACTIONS WILL INCREASE THE PRESSURE TO CONSERVE DELTA WATER FOR WILDLIFE BY BRINGING THE FEDERAL ENDANGERED SPECIES ACT TO BEAR ON WATERALLOCATION DECISIONS ALL TOLD THE AGENCIES SAID THEIR ACTIONS WOULD TRIM WATER DELIVERIES FROM THE STATE'S PRINCIPAL DAM AND RESERVOIR SYSTEMS BOTH OF WHICH DRAW WATER FROM THE DELTA BY 9 DURING YEARS OF NORMAL RAINFALL AND 21 DURING DRY YEARS THE FEDERAL AGENCIES INVOLVED ARE THE ENVIRONMENTAL PROTECTION AGENCY THE BUREAU OF RECLAMATION THE FISH & WILDLIFE SERVICE AND THE NATIONAL MARINE FISHERIES SERVICE UNDER GOV PETE WILSON CALIFORNIA HAS STAUNCHLY OPPOSED ANY CONTROLS ON HOW IT DISTRIBUTES WATER YESTERDAY GOV WILSON BLASTED THE FEDERAL PROPOSALS SAYING THAT THEY WILL THOUGHTLESSLY COST CALIFORNIA JOBS HE CALLED FOR MORE NEGOTIATIONS OVER CALIFORNIA WATER STANDARDS AGRICULTURAL INTERESTS ALSO DENOUNCED THE PROPOSALS NONETHELESS THE FEDERAL ACTION REPRESENTS THE MOST COORDINATED AND FORCEFUL EFFORT EVER BY THE FEDERAL GOVERNMENT TO INJECT ITSELF INTO THE ARID WEST'S INTERMINABLE WARS OVER WATER USE AND TO WEIGH IN ON THE SIDE OF WILDLIFE FOR DECADES FEDERAL AGENCIES ESSENTIALLY IGNORED MANY REQUIREMENTS OF FEDERAL WILDLIFE AND WATER LAW ALLOWING AGRICULTURE TO MAINTAIN A LOCK ON THE REGION'S WATER RESOURCES THAT POLICY HAS HAD A DAMAGING EFFECT ON WATER QUALITY AND WILDLIFE AS IRRIGATION DEPLETED RIVERS AND AQUIFERS AND TAINTED MANY WATER SOURCES WITH PESTICIDES AND OTHER FARM RUNOFF IN RECENT YEARS ITS FASTGROWING URBAN AREAS HAVE JOINED ENVIRONMENTALISTS IN CLAMORING FOR MORE OF AGRICULTURE'S WATER THE FEDERAL PROPOSALS ARE A WELCOME STEP IN THE RIGHT DIRECTION SAID BARRY NELSON DIRECTOR OF SAVE THE BAY AN ENVIRONMENTAL GROUP 9312160104 931216 MONEYFUND YIELDS FELL IN LATEST WEEK ON TAXEXEMPT BASIS NEW YORK YIELDS ON TAXFREE MONEYMARKET FUNDS DROPPED WHILE TAXABLE YIELDS WERE FLAT IN THE WEEK ENDED TUESDAY IBC/DONOGHUE'S AVERAGE TAXEXEMPT SEVENDAY COMPOUND YIELD FELL TO 169 FROM 186 ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THIS IS THE LOWEST TAXFREE MONEYFUND YIELD SINCE JULY 13 WHEN IT WAS 159 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 264 FOR SOMEONE PAYING 36 IN TAXES AND TO 279 FOR THOSE WHO PAY 396 WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT CREDITED THE DECLINE TO A LACK OF SUPPLY OF NEW TAXEXEMPT SECURITIES AT THE END OF THE YEAR WHICH PUSHES PRICES UP AND YIELDS DOWN ASSETS OF 338 TAXEXEMPT FUNDS ONE MORE THAN THE PREVIOUS WEEK DECREASED SLIGHTLY BY 6446 MILLION TO 10967 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY REMAINED AT 64 DAYS IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS EASED TO 272 FROM 273 IN THE LATEST WEEK THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS REMAINED AT 269 WHILE THE 30DAY SIMPLE YIELD INCHED UP TO 269 FROM 268 THE 30DAY COMPOUND YIELD STAYED AT 272 ASSETS OF 635 TAXABLE FUNDS FIVE MORE THAN THE PREVIOUS WEEK INCREASED BY 117 BILLION TO 49277 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACTUALLY ADDED 288 BILLION INCLUDING 156 BILLION ATTRIBUTABLE TO THE FIVE NEWLY REPORTING FUNDS MEANWHILE INDIVIDUAL INVESTORS TOOK OUT 171 BILLION AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS WAS SHORTENED BY ONE DAY TO 59 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9312160103 931216 FOREIGN EXCHANGE DOLLAR INCHES HIGHER AGAINST THE MARK AND THE YEN IN LIGHT TRADING SESSION BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR INCHED HIGHER AGAINST THE MARK AND THE YEN IN LIGHT TRADING AS INVESTORS SAT BACK TO AWAIT TODAY'S CRUCIAL BUNDESBANK MEETING BUT THE DOLLAR RACKED UP SOMEWHAT BIGGER GAINS AGAINST STERLING WHICH FELL AGAINST MOST CURRENCIES AS SOME SALES ORDERS SHOOK UP A THIN MARKET LATE IN NEW YORK THE DOLLAR WAS QUOTED YESTERDAY AT 17170 MARKS UP FROM 17138 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10985 YEN UP FROM 10935 YEN STERLING WAS TRADING AT 14792 DOWN FROM 14880 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10978 YEN AND AT 17170 MARKS ALSO CONTINUING TO HELP THE DOLLAR TRADERS NOTED WAS CONCERN OVER RECENT REMARKS BY VLADIMIR ZHIRINOVSKY THE RUSSIAN NATIONALIST WHOSE PARTY TRIUMPHED IN WEEKEND PARLIAMENTARY ELECTIONS ON TUESDAY MR ZHIRINOVSKY SUGGESTED HE WOULD LIKE TO CARVE UP MUCH OF EASTERN EUROPE BETWEEN RUSSIA AND GERMANY AND IN THE PAST HE HAS THREATENED TO USE NUCLEAR WEAPONS AGAINST COUNTRIES THAT IMPINGE UPON RUSSIAN INTERESTS BUT TRADERS NOTED THAT THE DOLLAR STOPPED SHORT OF BREAKING THROUGH 11000 YEN AND 17200 MARKS KEY TECHNICAL POINTS WHERE IT FACES STRONG SELLING INTEREST AND EVEN THOUGH MOST TRADERS EXPECT THOSE LEVELS TO BE BREACHED DURING THE NEXT FEW DAYS HEAVY SALES ORDERS ALREADY PLACED AT ABOVE THOSE LEVELS SHOULD MAKE ANY DOLLAR RALLY SLOW WORK AT BEST IT'S GOING TO BE VERY VERY TOUGH GOING ON THE WAY UP FOR THE DOLLAR SAID GARY SAKAMOTO A VICE PRESIDENT AT NATIONAL WESTMINSTER BANK PLC IN NEW YORK IT WILL BE TWO STEPS FORWARD ONE STEP BACK ALSO KEEPING THE DOLLAR RELATIVELY IDLE TRADERS NOTED WAS A GENERAL WARINESS OF TAKING LARGE POSITIONS AHEAD OF TODAY'S MEETING OF THE BUNDESBANK'S POLICYMAKING COUNCIL THE MEETING WILL BE THE LAST CHANCE FOR THE BUNDESBANK TO CHANGE ITS OFFICIAL INTEREST RATES DURING 1993 AND SOME PLAYERS ARE HOLDING OUT HOPE FOR ONE LAST EASING BEFORE THE YEAR RUNS OUT THE GERMAN CENTRAL BANK ALSO WILL ANNOUNCE ITS CLOSELY WATCHED TARGET RANGE FOR MONEYSUPPLY GROWTH IN THE COMING YEAR AN ANNOUNCEMENT THAT SOME TRADERS WARNED COULD HAVE A BIG IMPACT IF THE BUNDESBANK MOVES IT VERY FAR FROM 1993'S RANGE OF 4565 GROWTH A SURPRISE CHANGE IN THE RANGE COULD REALLY SPOOK THE MARKET SAID DAVID DURST A VICE PRESIDENT AT BEAR STEARNS & CO IN NEW YORK TRADERS GENERALLY EXPECT THE BUNDESBANK TO REDUCE ITS TARGET RANGE FOR M3 GROWTH TO ABOUT 46 A MOVE TRADERS SEE AS BALANCING THE CENTRAL BANK'S CONCERN OVER INFLATION WITH THE NEED TO REDUCE INTEREST RATES AND SPUR ECONOMIC GROWTH A SHARPER REDUCTION IN THE TARGET TRADERS ADDED COULD CALL INTO QUESTION THE MARKET'S VIEW THAT THE BUNDESBANK IS PREPARED TO MAKE SLOW BUT STEADY CUTS IN GERMAN RATES WHICH NOW STAND AT 575 ON THE DISCOUNT RATE AND 675 ON THE LOMBARD RATE 9312160102 931216 FERRUZZI AND MONTEDISON CAPITAL MILAN THE PREVIOUSLY ANNOUNCED CAPITAL INCREASES FOR FERRUZZI FINANZIARIA SPA AND MONTEDISON SPA WILL BEGIN TUESDAY GIVEN THE GREEN LIGHT BY SHAREHOLDERS IN EARLY DECEMBER THE FERRUZZI CAPITAL INJECTION AIMS TO RAISE 2484 TRILLION LIRE 147 BILLION AT MONTEDISON THE MAIN OPERATING UNIT OF FERRUZZI SHAREHOLDERS WERE ASKED TO BACK A 2916 TRILLIONLIRE CAPITAL INCREASE THE FERRUZZI CONGLOMERATE ITALY'S SECONDLARGEST PRIVATE SECTOR COMPANY HANDED OVER OPERATIONAL CONTROL TO A GROUP OF CREDITOR BANKS DURING THE SUMMER WHEN VAST FINANCIAL LOSSES WERE DISCOVERED IN ITS ACCOUNTS 9312160101 931216 WHO'S NEWS MORNINGSTAR GROUP INC MORNINGSTAR GROUP INC DALLAS C DEAN METROPOULOS 47 YEARS OLD WAS NAMED CHAIRMAN OF THIS SPECIALTY FOODPRODUCTS CONCERN MR METROPOULOS FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF STELLA FOODS INC SUCCEEDS THOMAS O HICKS 47 MR HICKS IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF HICKS MUSE & CO A PRIVATE LEVERAGEDBUYOUT CONCERN THAT ACQUIRED MORNINGSTAR IN 1991 AND TOOK IT PUBLIC LAST YEAR LAST MONTH HICKS MUSE ESTABLISHED A RELATIONSHIP WITH MR METROPOULOS'S FIRM C DEAN METROPOULOS & PARTNERS INC TO FOCUS ON FOODINDUSTRY ACQUISITIONS 9312160100 931216 WHO'S NEWS MANPOWER INC MANPOWER INC MILWAUKEE THE COMPANY APPOINTED JON F CHAIT CHIEF FINANCIAL OFFICER MR CHAIT 43 YEARS OLD IS AN EXECUTIVE VICE PRESIDENT AND A DIRECTOR OF THE EMPLOYMENT SERVICES CONCERN PRIOR TO THE APPOINTMENT GILBERT PALAY 66 SENIOR EXECUTIVE VICE PRESIDENT WAS ACTING CHIEF FINANCIAL OFFICER SEPARATELY MANPOWER SAID IT ELECTED MARVIN B GOODMAN TO ITS BOARD MR GOODMAN 65 OPERATED SEVERAL OF MANPOWER'S FRANCHISES IN ONTARIO UNTIL THE COMPANY ACQUIRED HIS INTERESTS RECENTLY HIS ELECTION BRINGS THE NUMBER OF DIRECTORS TO NINE 9312160099 931216 WHO'S NEWS WINSTON FURNITURE SAYS BROWN QUIT POSTS BIRMINGHAM ALA WINSTON FURNITURE CO SAID WILLIAM S BROWN RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER AND AS A DIRECTOR OF THE MAKER OF CASUAL FURNITURE MR BROWN COULDN'T BE REACHED FOR COMMENT THE COMPANY DECLINED TO DISCUSS THE REASON FOR HIS DEPARTURE WINSTON NAMED BOBBY TESNEY 48 YEARS OLD AS PRESIDENT CEO AND A DIRECTOR MR TESNEY HAD BEEN SENIOR VICE PRESIDENT OPERATIONS AND GENERAL MANAGER STEPHEN C HESS 44 WAS NAMED EXECUTIVE VICE PRESIDENT AND A DIRECTOR HE HAD BEEN SENIOR VICE PRESIDENT MARKETING AND SALES WINSTON SAID IT AGREED TO PURCHASE AT THE CURRENT MARKET PRICE APPROXIMATELY 110000 SHARES OF ITS STOCK OWNED BY MR BROWN THE COMPANY ALSO SAID MR BROWN IS ENTITLED TO SEVERANCE PAYMENTS OVER A 14MONTH PERIOD BEGINNING IN JANUARY TO PROVIDE FOR THOSE BENEFITS THE COMPANY SAID IT PLANS TO TAKE A ONETIME CHARGE THIS MONTH THE AMOUNT OF THE CHARGE WASN'T DISCLOSED IN TRADING YESTERDAY ON THE NASDAQ STOCK MARKET WINSTON CLOSED AT 11 A SHARE DOWN 1125 9312160098 931216 CREDIT RATINGS GTE CORP STAMFORD CONN MOODY'S INVESTORS SERVICE INC SAID IT IS REVIEWING THE LONGTERM DEBT RATINGS OF THIS TELEPHONE SYSTEM OPERATOR'S GTE NORTHWEST INC UNIT FOR A POSSIBLE DOWNGRADE ABOUT 443 MILLION IN DEBT IS AFFECTED THE RATINGS AGENCY SAID THE REVIEW DERIVES IN PART FROM CONCERNS THAT FUTURE REGULATORY ACTIONS INCREASING COMPETITIVE PRESSURE AND SLOW GROWTH IN DEMAND FOR TELECOMMUNICATION SERVICES MAY CONTINUE TO DEPRESS THE COMPANY'S REVENUE GTE NORTHWEST BASED IN EVERETT WASH CURRENTLY HAS A DOUBLEA3 RATING ON ITS FIRST MORTGAGE BONDS 9312160097 931216 SMALL STOCK FOCUS TAXSELLING TAKES TOLL ON STOCK PRICES AS SKID CONTINUES FOR FIFTH DAY IN A ROW BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK TAXSELLING CONTINUED TO TAKE A TOLL ON SMALLCOMPANY STOCK PRICES WHICH FINISHED SLIGHTLY LOWER FOR A FIFTH CONSECUTIVE DAY BUT THE MOVE LOWER WAS NOTHING COMPARED WITH TUESDAY WHEN THE RUSSELL 2000 INDEX SLID 234 POINTS OR 093 AND THE NASDAQ COMPOSITE INDEX FELL 826 POINTS OR 108 ON BROADBASED SELLING THE RUSSELL WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES LOST JUST 005 POINT TO END AT 24984 THE NASDAQ COMPOSITE MOVED 150 POINTS HIGHER TO 75297 HALTING A SEVENDAY LOSING STREAK MARKET OBSERVERS SAID MONEY FLOWED BACK INTO SMALLER STOCKS AS LARGER CYCLICALS TOOK A DIVE ON THE NEW YORK STOCK EXCHANGE THE DOW JONES INDUSTRIAL AVERAGE GAVE UP 2571 POINTS TO FINISH AT 371692 JOE LOFTUS SENIOR VICE PRESIDENT OF NASDAQ TRADING AT LEHMAN BROTHERS SAID TAXSELLING TYPICALLY CREEPS INTO THE MARKET IN DECEMBER BUT BY LATE IN THE MONTH SMALLCAP STOCKS SHOULD REBOUND SOMEWHAT TAXSELLING OCCURS AS INVESTORS DUMP LOSING STOCKS TO OFFSET GAINS ON WINNERS THIS DRIVES DOWN THE PRICE OF ALREADYDEPRESSED STOCKS SOMETIMES CREATING BARGAINS BY THE LAST WEEK OR TWO OF THE MONTH THE SOCALLED JANUARY EFFECT HISTORICALLY KICKS IN THIS SEASONAL TREND IS THE RESULT OF MARKET PLAYERS BUYING BACK STOCKS THEY SOLD OFF AT YEAR END SOME STOCKS IN THE TECHNOLOGY SECTOR LATELY ONE OF THE MOST BADLY BRUISED GROUPS GRABBED BACK GAINS YESTERDAY ALDUS A SEATTLE SOFTWARE FIRM CHALKED UP 1 TO CLOSE AT 22 1/2 LIUSKI INTERNATIONAL A MELVILLE NY MICROCOMPUTER PERIPHERALS COMPANY ADDED 7/8 TO CLOSE AT 11 5/8 AND SIGMA DESIGNS A FREMONT CALIF COMPUTER ENHANCEMENT PRODUCTS COMPANY GAINED 1 1/8 TO 14 DECLINING NASDAQ STOCKS CRAWLED AHEAD OF ADVANCERS 1519 TO 1507 TUESDAY LOSERS BEAT OUT GAINERS BY A 19TO11 MARGIN PRELIMINARY ACCOUNTING SHOWED NASDAQ NATIONAL MARKET VOLUME SLIDING TO 245468000 SHARES FROM 253447800 SHARES TUESDAY TOTAL VOLUME EASED TO 287595000 SHARES FROM 304879000 TUESDAY MEGATEST GAINED 2 1/4 TO 14 1/4 THE SAN JOSE CALIF INTEGRATED CIRCUIT COMPANY SAID LATE TUESDAY THAT ITS FISCAL FIRSTQUARTER NET INCOME ROSE TO 51 CENTS A SHARE FROM 12 CENTS A SHARE A YEAR EARLIER THE LATEST FIGURE INCLUDES AN ACCOUNTING ADJUSTMENT OF 25 CENTS A SHARE OTHER EARNINGSRELATED NEWS ALSO MOVED PRICES ON THE NEW YORK STOCK EXCHANGE KCS ENERGY MOVED 2 3/8 HIGHER TO 20 7/8 AS A RESULT OF A GOOD FISCAL FIRSTQUARTER EARNINGS OUTLOOK THE EDISON NJ OIL AND GAS PRODUCER SAID NET INCOME FOR THE CURRENT FISCAL FIRST QUARTER COULD EXCEED THE 45 CENTS A SHARE EARNED IN THE FOURTH QUARTER BY 10 TO 15 A YEAR EARLIER THE COMPANY POSTED EARNINGS OF 23 CENTS A SHARE IN ADDITION KCS SAID ITS BOARD AUTHORIZED THE REPURCHASE OF UP TO 500000 COMMON SHARES IN OPEN MARKET TRANSACTIONS FROM TIME TO TIME HAUSER CHEMICAL RESEARCH LOST 5/8 TO 8 5/8 THE BOULDER COLO COMPANY REPORTED FISCAL SECONDQUARTER EARNINGS OF 20 CENTS A SHARE ON REVENUE OF 21 MILLION COMPARED WITH NET INCOME OF 20 CENTS ON REVENUE OF ABOUT 2 MILLION A YEAR EARLIER HAUSER ALSO SAID THE BALANCE OF FISCAL 1994 AND THE FIRST QUARTER OF FISCAL 1995 WILL BE STRONG BASED ON THE FINAL NINE MONTHS OF ITS TAXOL SUPPLY CONTRACT INACOM OMAHA NEB DROPPED 3 1/2 TO 13 3/4 THE INFORMATION TECHNOLOGY PRODUCTS AND SERVICES COMPANY SAID FOURTHQUARTER EARNINGS WILL FALL SHORT OF PREVIOUS EXPECTATIONS AND WILL BE LOWER THAN THE 45 CENTS A SHARE POSTED A YEAR EARLIER SLOWERTHANPROJECTED REVENUE AND MARGIN RECOVERY FROM CHANGES MADE IN THE THIRD QUARTER WERE CITED CS FIRST BOSTON LOWERED ITS 1994 EARNINGS ESTIMATE FOR BOISE IDAHOBASED TJ INTERNATIONAL CAUSING THE BUILDING MATERIALS COMPANY'S STOCK PRICE TO DECLINE 4 TO 25 1/4 THE BROKERAGE FIRM REPORTEDLY CUT ITS PROJECTION TO 90 CENTS A SHARE FROM 115 BROCK CANDY CHATTANOOGA TENN SLIPPED 3 TO 8 1/4 THE COMPANY SAID IT EXPECTS FISCAL SECONDQUARTER EARNINGS TO FALL SUBSTANTIALLY BELOW THE 37 CENTS A SHARE A YEAR EARLIER BROCK SAID EARNINGS COULD FALL 40 TO 50 SHORT OF LAST YEAR'S NET INCOME WINSTON FURNITURE FELL 1 1/8 TO END AT 11 THE BIRMINGHAM ALA COMPANY SAID IT WILL TAKE A ONETIME FOURTHQUARTER PRETAX CHARGE OF ABOUT 600000 TO PROVIDE BENEFITS TO ITS FORMER PRESIDENT CHIEF EXECUTIVE OFFICER AND DIRECTOR WILLIAM S BROWN AS REPORTED TUESDAY MR BROWN RESIGNED AND WILL BE SUCCEEDED BY BOBBY TESNEY ON THE NEW ISSUE FRONT QUICKTURN DESIGN SYSTEMS CLIMBED TO 13 1/4 FROM ITS INITIAL OFFERING PRICE LATE TUESDAY OF 12 A SHARE THE COMPANY PROVIDES SYSTEMLEVEL VERIFICATION SOLUTIONS FOR THE DESIGN OF INTEGRATED CIRCUITS AND ELECTRONIC SYSTEMS ELSEWHERE ANDREW AN ORLAND PARK ILL COMMUNICATIONS PRODUCTS COMPANY SURGED 3 1/4 TO 36 1/2 THE COMPANY SAID IT IS A MAJOR SUPPLIER TO A CONSORTIUM SELECTED FOR THE BEST INITIAL BID IN A TELECOMMUNICATIONS TENDER THE CONSORTIUM WILL PROVIDE CELLULAR NETWORKS FOR NORTHERN AND SOUTHERN ARGENTINA COWEN & CO ANALYST MARC CABI ESTIMATES THE PACT COULD ADD UP TO 15 CENTS A SHARE TO ANDREW'S EARNINGS MR CABI RAISED HIS PROJECTION FOR FISCAL 1994 TO 205 A SHARE FROM 190 NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 42 WHILE 54 ISSUES HIT NEW LOWS 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 9312160095 931216 WORLD TRADE TALKS TRADE PACT IS SET BY 117 NATIONS SLASHING TARIFFS SUBSIDIES GLOBALLY US BUSINESSES LIKE TRADE PACT AS WHOLE BUT NOT SOME PARTS A WALL STREET JOURNAL NEWS ROUNDUP THE COMPLETION OF THE CALAMITYPRONE TRADE ROUND PRODUCED SIGHS OF RELIEF THROUGHOUT THE US BUSINESS COMMUNITY BUT ONLY A FEW BURSTS OF APPLAUSE BUSINESSES SELLING EVERYTHING FROM SECURITIES TO SEMICONDUCTORS SHARED ONE CONVICTION ON THE MARATHON TRADE TALKS NO ONE WANTED THEM TO FAIL THAT WOULD HAVE DEALT A PSYCHOLOGICAL BLOW TO THE GLOBAL ECONOMY JUST AS SOME OF ITS BIGGEST PLAYERS ARE REELING FROM RECESSION AND IT COULD HAVE LED TO PETTY TRADE QUARRELS THAT MIGHT HAVE CRAMPED BUSINESS EXPANSION BUT THE BROAD TRADE PACT NEGOTIATED OVER SEVEN YEARS UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE PROBABLY WON'T CREATE A GUSHER OF NEW ECONOMIC ACTIVITY AS YESTERDAY'S DEADLINE APPROACHED NEGOTIATORS TOSSED OUT SOME SEGMENTS OF THE DEAL AND WATERED OTHERS DOWN AND SOME OF THE MORE SIGNIFICANT CHANGES LIKE AN ELIMINATION OF TARIFFS ON CONSTRUCTION EQUIPMENT AND ENGINES WILL BE PHASED IN OVER THE DECADE DESPITE ITS EARLY BILLING THE GATT ROUND ENDED UP A DEAL TO BRING DOWN TARIFFS ON TANGIBLE ITEMS SUCH AS TOYS TRACTORS AND WHISKEY HOLLYWOOD AND WALL STREET GOT LITTLE BESIDES AN ECONOMY THAT WON'T AFTER ALL BE CLOUDED BY FEARS OF GLOBAL PROTECTIONISM OTHER BUSINESS EXECUTIVES WILL SEE MODEST IMPROVEMENTS ONE PAPERPRODUCTS EXECUTIVE FOR EXAMPLE EXPECTS TO SELL A FEW MORE DIAPERS IN ENGLAND AS A RESULT OF THE PACT FOLLOWING ARE THE EARLY REACTIONS OF INDUSTRIES THAT HAD SOMETHING AT STAKE IN THE TALKS THIS INDUSTRY HAS STRUGGLED WITH A PROTECTIONIST THICKET OF TARIFFS AND QUOTAS DESIGNED TO PROTECT US APPAREL AND TEXTILE PRODUCERS FROM LOWCOST IMPORTS FROM DEVELOPING COUNTRIES THE PACT WILL CHOP MOST US TARIFFS BY 25 AND WOULD PHASE OUT THE CURRENT QUOTAS OVER 10 YEARS IT'S TREMENDOUS SAID JOHN SHEA CHIEF EXECUTIVE OF SPIEGEL INC A DOWNERS GROVE ILL CATALOG COMPANY EVERYTHING WORKED OUT WELL THE COMPANY SAYS THE CURRENT QUOTA FOR PURCHASES FROM BANGLADESH THAILAND INDONESIA AND MALAYSIA IS NEARLY USED UP THAT WILL FORCE IT TO TURN TO OTHER PROBABLY MORE EXPENSIVE SUPPLIERS THE QUOTA ALREADY RAN OUT ON LONGSLEEVE PLAID AND STRIPED SHIRTS FROM INDIA SO SPIEGEL HAD TO SEARCH ELSEWHERE SIMILARLY ANN GUST VICE PRESIDENT AND GENERAL COUNSEL AT GAP INC SAYS THE NEW TEXTILE TERMS WILL HELP HER COMPANY BUT SHE ADDS THAT THE MOST SIGNIFICANT OPENING FOR HER COMPANY NEGOTIATED IN THE GATT DEAL WON'T KICK IN FULLY UNTIL LATER IN THE DECADE MOSTLY RETAILERS ARE LOOKING FORWARD TO SIMPLIFYING THEIR PURCHASING PATTERNS AL LOHN A SPIEGEL VICE PRESIDENT PREDICTED IT WILL SAVE ME A LOT OF HEADACHES THE QUOTAS ARE PRIMATE TRIBALISM AS FAR AS I AM CONCERNED TARIFFS ON TOYS WILL BE CHOPPED SUBSTANTIALLY BARBIE IS THE BIG WINNER HERE SAID THOMAS ST MAXENS AN OUTSIDE TRADE CONSULTANT TO MATTEL INC CURRENTLY THE US HAS A 12 DUTY ON DOLL TARIFFS MOST OTHER TOY TARIFFS ARE 68 THOSE DUTIES WILL BE PHASED OUT OVER THE NEXT FIVE TO 10 YEARS IMPORTANTLY THE EUROPEAN COMMUNITY CANADA JAPAN AND SOUTH KOREA JOINED THE LIST OF COUNTRIES WILLING TO REDUCE TOY TARIFFS TO ZERO WE HAVE ALL THE MAJOR TOY MARKETS LOCKED IN SAYS MR ST MAXENS CATERPILLAR INC AND DEERE & CO WILL BE CLEAR WINNERS FROM THE PACT WHICH ELIMINATES TARIFFS ON CONSTRUCTION EQUIPMENT AND ENGINES CATERPILLAR ESTIMATES THAT THE DEAL WOULD ADD 125 MILLION TO ITS ANNUAL SALES SUPPORTING ABOUT 800 CATERPILLAR JOBS IN THE US AND 1600 JOBS AT CATERPILLAR'S US SUPPLIERS IN 1992 CATERPILLAR'S EXPORTS FROM THE US ACCOUNTED FOR 333 BILLION OF ITS 1019 BILLION IN TOTAL SALES ALTHOUGH IT EXPECTS TO FEEL SOME BENEFITS FROM THE ACCORD SOONER THE PEORIA ILL COMPANY SAYS TARIFFS WOULDN'T BE FULLY ELIMINATED ON ITS PRODUCTS UNTIL 2000 AND IT'S STILL WAITING FOR FINAL DETAILS TO SEE WHICH COUNTRIES WERE ABLE TO NEGOTIATE SPECIAL BREAKS BUT CATERPILLAR IS CLEARLY PLEASED WITH THE AGREEMENT ESPECIALLY SINCE THE COMPANY CLAIMS CREDIT FOR SUGGESTING THE ZERO TARIFF IDEA IN 1988 TO THEN US TRADE REPRESENTATIVE CLAYTON YEUTTER WHO IS NOW A CATERPILLAR BOARD MEMBER IN THE EC CURRENT TARIFFS ON CATERPILLAR PRODUCTS RANGE FROM 4 TO 11 CATERPILLAR SAYS US TARIFFS ON EUROPEAN CONSTRUCTION EQUIPMENT AVERAGE 25 ZERO TARIFFS IS THE REAL PRIZE SAYS TIMOTHY ELDER CATERPILLAR'S MANAGER OF GOVERNMENTAL AFFAIRS HE VOWS THAT CATERPILLAR WILL FIGHT FOR APPROVAL IN CONGRESS HOLLYWOOD EXECUTIVES SPENT THE DAY LICKING THEIR WOUNDS AFTER A THUMPING DEFEAT IN GENEVA WHERE NOW WHAT NOW I THINK THAT IS A PROCESS LEAST WELL ACCOMPLISHED THE MORNING AFTER SAID SIDNEY J SHEINBERG PRESIDENT AND CHIEF OPERATING OFFICER AT MCA INC A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO WE'VE FOUND OURSELVES IN A PLACE WHERE WE DIDN'T THINK WE'D BE BUT NOW WE NEED TO TAKE SOME TIME AND THINK THIS THROUGH TO FIND OUT WHERE TO GO FROM HERE HOLLYWOOD HAD HOPED TO USE THE GATT TALKS TO BREAK EUROPEAN QUOTAS THAT LIMIT THE AMOUNT OF USPRODUCED MOVIES AND SHOWS BROADCAST ON EUROPEAN TELEVISION MOTION PICTURE ASSOCIATION OF AMERICA PRESIDENT JACK VALENTI BLAMES EUROPEAN NEGOTIATORS FOR NOT TAKING US OFFERS SERIOUSLY WE WERE ABSOLUTELY DUMBFOUNDED WHEN WE HEARD ABOUT THEIR OFFER AT 3 AM THEY CAME BACK WITH A HOLLOW AGREEMENT THE DISAPPOINTMENT NOTWITHSTANDING US STUDIOS HAVE CAPTURED MORE THAN TWOTHIRDS OF THE MOVIE MARKET IN EUROPE ALREADY AND SOME PRODUCERS HAVE WORKED AROUND THE RULES HIGHLANDER THE SERIES FOR EXAMPLE IS AN HOURLONG ACTIONADVENTURE TV SHOW FINANCED AND OWNED BY FRENCH MEDIA GIANT GAUMONT TELEVISION BUT COUNTS AMONG ITS STAFF SOME AMERICAN PRODUCERS FRANKLY I'M JUST NOT CONCERNED ABOUT GATT I COULD ALMOST MAKE THE CASE THAT I'M HAPPY ABOUT IT SAID STEVEN MAIER AN AMERICAN TV EXECUTIVE WHO IS COEXECUTIVE PRODUCER OF THE SERIES WHICH IS A HIT IN EUROPE THE KINDS OF THINGS THAT I DO PUT A PREMIUM ON THE EUROPEANESS' OF THE TV SERIES HIS NEXT PROJECT A TV SERIES BASED ON THE OLD COMIC STRIP TERRY AND THE PIRATES WILL BE FINANCED BY ITALIANS IT BEGINS PRODUCTION NEXT SUMMER STILL HOLLYWOOD MAY FIGHT EUROPEAN BROADCAST QUOTAS THROUGH BILATERAL TRADE TOOLS MR SHEINBERG SAID IT MIGHT BE APPROPRIATE FOR US TO SOLICIT FURTHER COUNSEL FROM THE ADMINISTRATION AND POSSIBLY FROM THE CONGRESS THE SEMICONDUCTOR INDUSTRY TREMBLED AT EARLY REPORTS THAT THE FINAL GATT DEAL WOULD WEAKEN INTELLECTUAL PROPERTY AND ANTIDUMPING PROVISIONS HIGH EUROPEAN TARIFFS ON CHIPS WERE ANOTHER CONCERN THIS IS AN INDUSTRY BUILT ON INTELLECTUAL PROPERTY SAYS A SPOKESMAN FOR GIANT CHIP MAKER INTEL CORP IN THE END CHIP MAKERS CHEERED A LATE VICTORY ON THE FIRST TWO ISSUES BUT EXPRESSED MILD DISAPPOINTMENT THAT EUROPEAN BARRIERS WOULD BE DRIVEN DOWN BUT NOT ERASED I DON'T THINK THIS GATT ROUND WILL RESULT IN ANY MIRACULOUS INCREASE IN BUSINESS IN EUROPE SAYS BEN ANIXTER ADVANCED MICRO DEVICES INC'S VICE PRESIDENT FOR EXTERNAL AFFAIRS IT WILL MAKE IT MARGINALLY EASIER FIVE YEARS FROM NOW THE TARIFFS ARE STILL GOING TO LOOK PROTECTIONIST IN THE EARLY 1980S ADVANCED MICRO WAS DRIVEN OUT OF THE DRAM OR DYNAMIC RANDOM ACCESS MEMORY BUSINESS BY JAPANESE CHIP DUMPING BESIDES BEING UNABLE TO COMPETE IN THE MARKET FOR THE MOST WIDELY USED TYPE OF MEMORY CHIPS THE COMPANY ALSO CAME CLOSE TO THROWING IN THE TOWEL ON ANOTHER MAINSTAY CHIP EPROM OR ERASABLE PROGRAMMABLE READONLY MEMORY TODAY THE COMPANY'S FASTEST GROWTH AND 25 OF ITS SALES COMES FROM SOCALLED FLASH MEMORY CHIPS WHICH WOULD HAVE BEEN THREATENED IF THE THE GATT HAD WEAKENED THE MEANS TO BRING ANTIDUMPING ACTIONS AGAINST OVERSEAS RIVALS WHO CUT PRICES BELOW THE ACTUAL PRODUCTION COSTS OR BELOW PRICES CHARGED IN DOMESTIC MARKETS THEY TURNED AROUND A SITUATION THAT COULD HAVE BEEN PRETTY BAD MR ANIXTER SAYS OF THE NEGOTIATORS WHO TOUGHENED THE ANTIDUMPING RULES SOME COUNTRY COULD HAVE DUMPED US OUT OF BUSINESS LOUIS VARGHA DIRECTOR OF FINANCE AND PLANNING AT WEYERHAEUSER CO AND CHAIRMAN OF A PAPERINDUSTRY LOBBYING GROUP SAYS THE RESULTS WERE A MIXED SUCCESS FOR HIS INDUSTRY MOST DEVELOPED COUNTRIES AGREED TO REDUCE TARIFFS ON PAPER TO ZERO SOMETHING THE INDUSTRY HAS LONG SOUGHT BECAUSE OTHER INDUSTRIALIZED COUNTRIES HAVE TARIFFS OF AT LEAST 6 ON PAPER WHILE THE US HAS TARIFFS OF 25 AND LOWER BUT THE REDUCTIONS WILL COME OVER A 10YEAR PERIOD INSTEAD OF A FIVEYEAR PERIOD AS THE INDUSTRY HOPED MOREOVER MANY DEVELOPING COUNTRIES HAVEN'T SIGNED ON TO THE ZERO TARIFF AS A RESULT THE INDUSTRY'S EXPORTS OVER A 12YEAR PERIOD WILL INCREASE BY HALF OR LESS OF THE 3 BILLION IT ESTIMATED IT OTHERWISE WOULD HAVE WE WON'T GET AS MUCH AS QUICKLY AS WE COULD HAVE HE NOTES THE LONGER TIMETABLE WILL HURT THE EFFORTS OF US COMPANIES TO INCREASE EXPORTS TO THE EUROPEAN COMMUNITY BECAUSE SCANDINAVIAN COUNTRIES WHICH ARE MAJOR COMPETITORS HAVE A SEPARATE AGREEMENT THAT LETS THEM EXPORT TO EUROPE WITHOUT TARIFFS NOW THEY'VE WIPED US OUT IN EUROPE HE COMPLAINS FOREST PRODUCTS COMPANIES ALSO ARE UNHAPPY THAT THE JAPANESE HAVE AGREED SO FAR TO REDUCE TARIFFS BY ONLY 50 WHILE THE EC AND THE US AND CANADA HAVE AGREED TO ELIMINATE THEIR TARIFFS ALTOGETHER THE JAPANESE POSITION IS TOTALLY UNACCEPTABLE TO THE US INDUSTRY SAYS LYN WITHEY DIRECTOR OF FEDERAL CORPORATE AFFAIRS FOR INTERNATIONAL PAPER CO PURCHASE NY SHE SAID HOWEVER THAT THE US GOVERNMENT HAS PROMISED TO CONTINUE PUSHING THE JAPANESE FOR TARIFF ELIMINATION BEFORE THE AGREEMENT IS APPROVED BY CONGRESS WE'RE NOT CLOSING THE DOOR ON THE NEGOTIATIONS IN THIS SECTOR SHE ADDS LARRY GESS DIRECTOR OF WORLD TRADE FOR NALCO CHEMICAL CO NOTES THAT THE US HAS HAD ONLY LIMITED SUCCESS GETTING WIDESPREAD AGREEMENT ON TARIFF HARMONIZATION SPECIFICALLY HE COMPLAINED THAT MANY DEVELOPING COUNTRIES INCLUDING BRAZIL ARGENTINA INDIA AND INDONESIA DIDN'T SIGN ON THESE COUNTRIES HAVE WORLDCLASS CHEMICAL PLANTS MR GESS NOTES IF WE OPEN OUR BORDERS WITH LOW TARIFFS AND THEY KEEP THEIRS HIGH THEY CAN DO A LOT OF DAMAGE TO OUR INDUSTRY SEE RELATED ARTICLE GATT ACCORD ENDS SEVEN YEARS OF TALKS TAKES EFFECT JULY '95 WSJ DEC 16 1993 9312160094 931216 WEDNESDAY'S MARKETS INDUSTRIALS FALL 2571 TO 371692 KODAK'S SLIDE WEIGHS HEAVILY ON THE INDEX BONDS HOLD STEADY BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE SLUMPED UNDER THE WEIGHT OF PLUNGING EASTMAN KODAK SHARES BOND PRICES WERE FLAT TO MODESTLY HIGHER AND THE DOLLAR ROSE THE INDUSTRIAL AVERAGE FELL 2571 POINTS TO 371692 STANDARD & POOR'S 500STOCK INDEX LOST 122 TO 46184 BUT THE NASDAQ COMPOSITE INDEX ROSE 150 TO 75297 KODAK WAS HAMMERED AFTER THE COMPANY SAID ITS 1994 EARNINGS WILL BE LOWER THAN ANALYSTS' ESTIMATES IT CLOSED DOWN 7 1/4 OR 12 TO 55 1/2 AND ACCOUNTED FOR 16 POINTS OF THE DOW'S DECLINE KODAK'S SLIDE OFFSET STRONG ADVANCES AMONG SEVERAL OTHER DOW COMPONENTS INCLUDING MINNESOTA MINING & MANUFACTURING BOEING AND GENERAL ELECTRIC THE REST OF THE MARKET DIDN'T FARE MUCH BETTER THAN THE INDUSTRIAL AVERAGE AS DECLINING ISSUES FAR OUTPACED ADVANCERS WE'RE HEADING INTO A SIGNIFICANT CORRECTION SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ IT ALREADY STARTED FOR THE S&P AND NASDAQ AND FOR THE AVERAGE STOCK IN MIDOCTOBER EVEN THOUGH THE DOW MANAGED TO MAKE A SERIES OF NEW HIGHS UNTIL A FEW DAYS AGO A STRONGERTHANEXPECTED REPORT ON INDUSTRIAL PRODUCTION IN NOVEMBER PASSED THROUGH THE FINANCIAL MARKETS WITHOUT SO MUCH AS A RIPPLE THE FEDERAL RESERVE BOARD REPORTED THAT OUTPUT ROSE 09 IN THE MONTH EXCEEDING ANALYSTS' EXPECTATIONS OF A 06 GAIN IT WAS THE SIXTH STRAIGHT GAIN AND THE LARGEST IN A YEAR BUT THE BOND MARKET LARGELY IGNORED THE REPORT BECAUSE TRADERS ALREADY HAVE ACCEPTED THE FACT THAT THE ECONOMY IS GROWING AT A FASTER RATE THAN EARLIER IN THE YEAR MR MCALINDEN SAID THE STRONG GROWTH IN THE FOURTH QUARTER IS ALREADY PRICED INTO THE BOND MARKET AT THESE LEVELS HE SAID BUT HE SAID BOND INVESTORS COULD FACE A SCARE ON THE INFLATION FRONT HE NOTED THAT THE INDUSTRIAL PRODUCTION DATA SHOWED FACTORIES' NOVEMBER OPERATING RATE CLIMBED TO 83 OF CAPACITY THE HIGHEST LEVEL SINCE AUGUST 1989 HISTORICALLY A LEVEL OF 85 TO 86 TENDS TO TRIGGER A RISE IN PRODUCER PRICES HE SAID HE ALSO NOTED THAT THE COMMODITY RESEARCH BUREAU'S INDEX OF COMMODITIES PRICES HAS BEEN CLIMBING YESTERDAY APPROACHING THE YEAR'S HIGH THE BOND MARKET STILL DOESN'T BELIEVE THERE WILL BE A SURGE IN INFLATION NEXT YEAR MR MCALINDEN SAID AS SOON AS WE SEE SOMETHING DEVELOPING ON THE INFLATION FRONT WE'LL GET A QUICK AND SUBSTANTIAL UPTICK IN INTEREST RATES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 029 TO 10936 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3076 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1172 ISSUES FELL AND 895 ROSE BOND PRICES WERE UNCHANGED OR SLIGHTLY HIGHER THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE STOOD AT 627 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS AT 17170 MARKS AND 10985 YEN COMPARED WITH 17138 MARKS AND 10935 YEN TUESDAY 9312160093 931216 WHO'S NEWS KENDALL SQUARE CEO WINS TAX DISPUTE WITH MASSACHUSETTS BOSTON WILLIAM I KOCH INVESTOR YACHTSMAN AND RELUCTANT CHIEF EXECUTIVE OFFICER OF KENDALL SQUARE RESEARCH CORP WON A 10YEAROLD TAX DISPUTE AGAINST MASSACHUSETTS THAT COULD YIELD HIM 46 MILLION THE STATE SUPREME JUDICIAL COURT AWARDED MR KOCH 196 MILLION PLUS PENALTIES AND INTEREST RULING AGAINST THE STATE DEPARTMENT OF REVENUE WHICH HAD SOUGHT TO TAX HIM BASED ON CAPITAL GAINS FROM THE SALE OF STOCK IN A FAMILY BUSINESS THE REVENUE DEPARTMENT ARGUED THAT MR KOCH TRIED TO ESCAPE STATE TAXES BY FUNNELING MONEY TO OUTOFSTATE CORPORATIONS BUT THE STATE APPELLATE TAX BOARD RULED IN MR KOCH'S FAVOR HE LOST THE CASE IN STATE APPEALS COURT BUT THAT RULING WAS OVERTURNED TUESDAY MR KOCH'S BATTLE WITH THE REVENUE DEPARTMENT DATES BACK TO HIS TAX RETURNS FOR 1983 AT ISSUE WAS A CAPITAL GAIN OF 2753 MILLION FROM A STOCK SALE IN THE KOCH FAMILY BUSINESS KOCH INDUSTRIES INC WICHITA KAN BEFORE THE STOCK SALE MR KOCH FORMED A NUMBER OF CORPORATIONS IN DELAWARE TO RECEIVE THE PROCEEDS AND IT WAS STOCK SALES BY THESE NEW COMPANIES THAT WERE CHALLENGED BY THE STATE REVENUE COMMISSIONER MITCHELL ADAMS SAID THE STATE PROBABLY WILL SEEK RECONSIDERATION BY THE COURT IF THAT FAILS IT WOULD LIKELY PAY UP NEXT MONTH TAKING A BITE OUT OF TAX COLLECTIONS HE SAID MR KOCH HAS NUMEROUS BUSINESS VENTURES AND WAS WINNER OF THE 1992 AMERICA'S CUP YACHT TROPHY MOST RECENTLY HE TOOK OVER AS CHIEF EXECUTIVE OF KENDALL SQUARE FOLLOWING THE FIRING OF ITS PRESIDENT AND OTHER EXECUTIVES IN THE WAKE OF REVENUEACCOUNTING PROBLEMS 9312160092 931216 UNIROYAL TECHNOLOGY EXPECTS TO POST PROFIT FOR FISCAL 4TH PERIOD SARASOTA FLA UNIROYAL TECHNOLOGY CORP EXPECTS TO BE IN THE BLACK FOR ITS FISCAL FOURTH QUARTER DESPITE ANALYSTS' PROJECTIONS OF A LOSS THE MAKER OF PLASTICS POLYMER AND SPECIALTY CHEMICAL PRODUCTS WHICH EMERGED FROM A CHAPTER 11 REORGANIZATION IN SEPTEMBER 1992 REPORTED AN OPERATING LOSS OF 118 MILLION FOR THE YEAREARLIER QUARTER HOWARD R CURD CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID ANALYSTS HAVE BEEN EXPECTING A NET LOSS OF FIVE CENTS TO EIGHT CENTS A SHARE FOR THE QUARTER ENDED SEPT 26 BUT MR CURD SAID UNIROYAL TECHNOLOGY WILL BE PROFITABLE IN THE QUARTER OPERATING PROFIT IN THE PERIOD TOTALED ABOUT 3 MILLION HE SAID AND SALES JUMPED ABOUT 14 TO 45 MILLION FROM 394 MILLION PROGRESS SINCE THE COMPANY'S RESTRUCTURING HAS BEEN FASTER THAN WE EXPECTED HE SAID SALES ARE COMING BACK FASTER THAN WE THOUGHT A MAJOR FACTOR IN THE IMPROVED PERFORMANCE IS THE COMPANY'S COATEDFABRIC SEGMENT WHERE SALES JUMPED ABOUT 35 IN THE QUARTER MR CURD SAID THAT SEGMENT MAKES NAUGAHYDE WHICH IS SOLD TO SEATING MANUFACTURERS AND PRODUCTS FOR AUTOS INCLUDING SEATING DOOR PANELS AND INTERIOR FINISHES A LARGE INCREASE IN SALES TO FOREIGN AUTO MAKERS WITH PLANTS IN THE US HELPED BOLSTER SALES IN COATED FABRICS UNIROYAL TECHNOLOGY ALSO SAW STRONG IMPROVEMENT IN ITS SPECIALTY FOAMS AND ADHESIVES SEGMENT MR CURD SAID WHERE SALES CLIMBED ABOUT 30 THE COMPANY'S ADHESIVES FOR COMMERCIAL ROOFING HE ADDED ARE BENEFITING FROM INCREASED DEMAND IN THAT MARKET 9312160091 931216 TERRA DUPONT SETTLE DISPUTE OVER ISSUES OF PRODUCT LIABILITY SIOUX CITY IOWA TERRA INDUSTRIES INC SETTLED A TANGLED LEGAL DISPUTE WITH DUPONT CO OVER LIABILITY ISSUES LINKED TO DUPONT'S PROBLEMPLAGUED BENLATE FUNGICIDE THE SETTLEMENT TAKES TERRA OUT OF WHAT HAS BEEN SOMETHING OF A LEGAL SHADOW BUT DOES NOTHING TO AMELIORATE DUPONT'S POTENTIALLY MASSIVE LEGAL EXPOSURE TERRA A FERTILIZER AND FARMCHEMICAL SUPPLIER WAS ONE OF SEVERAL COMPANIES THAT MANUFACTURED THE BENLATE PRODUCT FOR DUPONT UNDER CONTRACT IN THE LATE 1980S AFTER DISCOVERING THAT SOME OF THE BENLATE LINE WAS CONTAMINATED WITH A WEEDKILLER KNOWN AS ATRAZINE DUPONT WITHDREW THE CONTAMINATED PRODUCT BATCHES IN 1989 IT TRACED THE ATRAZINE TO TERRA'S FACILITIES AND TERRA'S INSURERS LATER PAID OUT ABOUT 60 MILLION IN CLAIMS FROM GROWERS WHO SAID THEIR CROPS HAD BEEN HARMED BY THE CONTAMINATED PRODUCTS UNTIL YESTERDAY'S SETTLEMENT IT STILL FACED ABOUT THIRTY SUCH LAWSUITS DUPONT IN WILMINGTON DEL EVENTUALY PULLED THE ENTIRE PRODUCT FROM THE MARKET IN 1991 A SPOKESWOMAN SAYS THAT IT FELT IT HAD TO BECAUSE STRICT COMPLIANCE WITH THE EPA'S RULING FORBIDDING EVEN TRACE ATRAZINE WOULD BE DIFFICULT THE COMPANY'S ASSERTION IS THAT IT PULLED THE PRODUCT SPECIFICALLY FOR THAT REASON AND ONLY LATER BEGAN TO RECEIVE GROWER COMPLAINTS TERRA SAID IN A RELEASE YESTERDAY THAT THE TWO PARTIES AGREED TO DROP THEIR LITIGATION AND DUPONT WILL ASSUME RESPONSIBILITY FOR ALL PENDING BENLATE CLAIMS TERRA WILL RESUME ITS ROLE AS A WHOLESALE AND RETAIL MARKETER OF DUPONT AGRICULTURAL PRODUCTS 9312160090 931216 METZENBAUM IS ASKING FOR CLOSER SCRUTINY OF MEDIA MERGERS WASHINGTON SEN HOWARD METZENBAUM CHAIRMAN OF THE SENATE ANTITRUST SUBCOMMITTEE URGED GOVERNMENT ANTITRUST ENFORCERS TO ESTABLISH SPECIAL UNITS TO INVESTIGATE MAJOR MEDIA MERGERS IN LETTERS TO THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION AND THE FEDERAL TRADE COMMISSION THE OHIO DEMOCRAT SAID CONSUMERS COULD BE VICTIMIZED BY A HANDFUL OF TELECOMMUNICATIONS CONGLOMERATES UNLESS THE FEDERAL ANTITRUST AGENCIES FOCUS AND COORDINATE THEIR EFFORTS TO PROVIDE RAPID AND STRICT SCRUTINY OF EVERY PROPOSED TELECOMMUNICATIONS DEAL SEN METZENBAUM SAID THE UNITS SHOULD EXAMINE NOT JUST CURRENT AND FUTURE MERGERS BUT ALSO RECENT DEALS THAT MAY HAVE ESCAPED FORMAL SCRUTINY HE SPECIFICALLY CITED U S WEST INC'S ACQUISITION OF 25 OF TIME WARNER INC'S ENTERTAINMENT BUSINESS AS A TRANSACTION THAT SHOULD NEVER HAVE BEEN ALLOWED TO PROCEED ABSENT A CLOSE LOOK BY THE FEDERAL ANTITRUST AUTHORITIES 9312160089 931216 WORLD TRADE TALKS US EXECUTIVE GETS PRISON TERM IN CROSSBORDER POLLUTION CASE BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY IN THE TOUGHEST US PROSECUTION EVER OF A CROSSBORDER ENVIRONMENTAL CASE THE CHIEF EXECUTIVE OFFICER OF A CALIFORNIA COMPANY WAS SENTENCED LATE TUESDAY TO 16 MONTHS IN PRISON ON THREE FELONY COUNTS OF UNLAWFUL TRANSPORTATION OF HAZARDOUS WASTES TO MEXICO THE EXECUTIVE MORRIS P KIRK PLEADED NO CONTEST TO THE CHARGES IN LOS ANGELES COUNTY SUPERIOR COURT IN ADDITION MR KIRK'S COMPANY ALCO PACIFIC INC OF GARDENIA CALIF WAS LEVIED A FINE OF 25 MILLION UNDER CALIFORNIA ENVIRONMENTAL LAWS MR KIRK'S ATTORNEY DECLINED TO COMMENT ON THE CASE THE IMPLICATIONS OF THE CASE ARE ESPECIALLY NOTEWORTHY BECAUSE USMEXICO COMMERCE IS EXPECTED TO EXPAND UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT AND THE ALCO PACIFIC DUMP SOUTHEAST OF THE BORDER CITY OF TIJUANA BECAME A GRIM REMINDER DURING THE NAFTA DEBATE OF MEXICO'S DIFFICULTIES IN ENFORCING ITS ENVIRONMENTAL LAWS WE INTEND TO CONTINUE OUR FOCUS ALONG THE BORDER SAID DAVID ENG THE LOS ANGELES COUNTY DEPUTY DISTRICT ATTORNEY WHO PROSECUTED THE CASE WITH HELP FROM MEXICO'S ATTORNEY GENERAL FOR THE ENVIRONMENT WE WANT FREE AND CONTINUOUS TRADE SAID MR ENG BUT WE WANT TO MAKE SURE THAT ALL BUSINESS IS DOING IT LEGALLY WITHOUT ENDANGERING THE HEALTH OF PEOPLE ON BOTH SIDES OF THE BORDER THE PROSECUTION GREW OUT OF LENGTHY INVESTIGATION OF THE 14ACRE TOXIC DUMP NEAR DAIRIES OUTSIDE TIJUANA ALCO PACIFIC WAS ACCUSED OF TRANSPORTING LEAD SLAG A HAZARDOUS WASTE IN THE US FROM A DALLAS COMPANY TO MEXICO WHERE THE LEAD WAS TO BE RECYCLED US AND MEXICAN PROSECUTORS NOTED THAT THE LEAD WAS NEVER RECYCLED AND WAS SPARKING UNDERGROUND FIRES AT THE DUMP SITE PROSECUTORS ALSO BASED THEIR CASE ON THE USMEXICO LA PAZ AGREEMENT AN ENVIRONMENTAL TREATY THAT GOVERNS SUCH ISSUES AS HAZARDOUSWASTE TRANSPORT BUT WHICH HAS LONG BEEN CONSIDERED LEGALLY WEAK BY ENVIRONMENTALISTS THE CASE ULTIMATELY WAS PROSECUTED UNDER CALIFORNIA STATUTES IN JUNE THE DALLAS COMPANY RSR CORP A CLOSELY OWNED LEAD RECYCLER AGREED TO PAY 25 MILLION TO SETTLE CHARGES THAT IT IMPROPERLY TRANSPORTED LEAD WASTE TO MEXICO FROM ITS LOS ANGELES SMELTER AS A RESULT LOS ANGELES COUNTY DONATED 2 MILLION TO THE MEXICAN GOVERNMENT TO CLEAN UP THE SITE AND 300000 TO A NONPROFIT GROUP TO START LEAD TESTING AMONG CHILDREN ALONG THE USMEXICAN BORDER NO DECISION HAS YET BEEN MADE MR ENG SAID ON WHETHER TO MAKE FURTHER DONATIONS TO MEXICO AS THE ALCO PACIFIC JUDGMENT HAS YET TO BE COLLECTED 9312160088 931216 MUTUALFUND RULE CHANGES ARE PROPOSED BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MUTUALFUND DIRECTORS' PAY MAY SOON BE GETTING A LOT MORE EXPOSURE FOR SOME MUTUALFUND DIRECTORS THE REVAMPED PROXY STATEMENTS COULD EXPOSE AN EMBARRASSMENT OF RICHES UNDER CURRENT RULES EACH FUND MUST SAY HOW MUCH IT PAYS INDIVIDUAL DIRECTORS BUT NEEDN'T DISCLOSE HOW MUCH DIRECTORS GET FROM RELATED FUNDS OR WHAT THEIR RETIREMENT BENEFITS ARE THOSE CAN ADD UP TO A FAIR AMOUNT OF COMPENSATION SAID BARRY BARBASH NEW DIRECTOR OF THE SEC'S INVESTMENTMANAGEMENT DIVISION ONE PROPOSED RULE CALLS FOR MUTUAL FUNDS TO DISCLOSE HOW MUCH EACH DIRECTOR MAKES FROM ALL THE FUNDS IN THE SAME FAMILY A SURVEY DONE A YEAR AGO BY THE NEWSLETTER FUND DIRECTIONS SHOWED THAT FUNDDIRECTOR ANNUAL PAY RANGED FROM 1600 FOR A SMALL FUND GROUP TO 145800 FOR A LARGE FUND GROUP BUT A FEW DIRECTORS EARN MUCH MORE FUND DIRECTIONS SAID AND WERE EXCLUDED FROM THE SURVEY FOR BEING STATISTICALLY EXTREME FUND DIRECTORS ARE SUPPOSED TO OVERSEE ON BEHALF OF THE FUND SHAREHOLDERS THE ADVISERS WHO ACTUALLY PICK THE STOCKS IN A FUND THE PROPOSED RULE THREATENS TO BRING SOME OF THE CONTROVERSY OVER CORPORATE DIRECTORS' PAY TO THE MUTUALFUND ARENA AT THE BEHEST OF COMMISSIONER MARY SCHAPIRO THE RULES WOULD ALSO CLARIFY VOTING FOR SHAREHOLDERS WHOSE PROXY STATEMENTS COVER MORE THAN ONE FUND UNDER THIS PROPOSAL A FUND COULDN'T SEND SHAREHOLDERS PROXY CARDS DEALING WITH ISSUES RELATED TO OTHER FUNDS THE RULE WOULD SHED MORE LIGHT ON OTHER MATTERS UP FOR SHAREHOLDER VOTES REQUESTS FROM FUND ADVISERS FOR HIGHER FEES FOR INSTANCE WOULD BE ACCOMPANIED BY A TABLE COMPARING NEW FEES WITH CURRENT FEES IN A SEPARATE MATTER THE SEC PROPOSED A BATCH OF RULES TO LIMIT THE INVESTMENT OPTIONS AND THE RISKS FOR TAXEXEMPT MONEYMARKET FUNDS THE RULES WOULD BE SIMILAR TO THOSE ADOPTED IN FEBRUARY 1991 TO COVER TAXABLE MONEYMARKET FUNDS SAID ROBERT PLAZE ASSISTANT DIRECTOR OF THE SEC'S INVESTMENTMANAGEMENT DIVISION UNDER THE PROPOSAL THE 173 FUNDS THAT INVEST IN SECURITIES EXEMPT FROM FEDERAL INCOME TAX COULD PLACE NO MORE THAN 5 OF THEIR ASSETS IN THE SECURITIES OF A SINGLE ISSUER SUCH FUNDS CURRENTLY HAVE NO DIVERSIFICATION REQUIREMENTS AN ADDITIONAL 157 FUNDS INVEST IN SECURITIES THAT ARE EXEMPT FROM STATE AND LOCAL TAXES AS WELL TYPICALLY ALL FROM THE SAME STATE FOR THESE FUNDS DIVERSIFICATION IS LESS OF AN OPTION SO THE SEC PROPOSED THEIR INVESTMENTS BE LIMITED TO SECURITIES WITH THE TOP RANKING BY RATING AGENCIES SUCH FUNDS WOULD ALSO BE REQUIRED TO TELL SHAREHOLDERS OF THE RISKS OF LESS DIVERSIFICATION AS OF DEC 8 INDIVIDUALS HELD 889 BILLION IN TAXEXEMPT MONEYMARKET FUNDS WHILE INSTITUTIONAL INVESTORS HELD 231 BILLION ACCORDING TO THE INVESTMENT COMPANY INSTITUTE IN YET ANOTHER MUTUALFUND MATTER THE SEC PROPOSED A PACKAGE OF RULE CHANGES COVERING MULTIPLECLASS FUNDS WHICH HOLD A SINGLE PORTFOLIO OF SECURITIES BUT CAN CHARGE DIFFERENT FEES BASED ON DIFFERENCES IN SALES AND SERVICES MOST CHANGES WOULD REQUIRE CLEARER DISCLOSURE OF FUND FEATURES TO INVESTORS FUNDS WOULD HAVE TO INCLUDE IN PROSPECTUSES A GRAPH SHOWING THE PROJECTED VALUE OF THE VARIOUS CLASSES OVER THE NEXT 10 YEARS AND GIVE INVESTORS A TOLLFREE TELEPHONE NUMBER IN PROSPECTUSES AND ADS TO CALL FOR MORE INFORMATION THE PROPOSED RULE WOULD ALSO ALLOW MUTUAL FUNDS TO ISSUE MULTIPLE CLASSES OF SHARES WITHOUT ASKING THE SEC FOR PERMISSION FOR EACH CLASS THE SEC WILL COLLECT COMMENTS ON THE PROPOSED RULES COVERING PROXY STATEMENTS AND MULTIPLECLASS FUNDS FOR 60 DAYS COMMENTS ON THE MONEYMARKET FUND RULES WILL BE ACCEPTED FOR 90 DAYS FINAL RULES WILL REQUIRE APPROVAL OF THE COMMISSION 9312160087 931216 TWO EXTRADERS EXPELLED FINED HEAVILY BY CBOT CHICAGO THE CHICAGO BOARD OF TRADE EXPELLED AND HEAVILY FINED TWO FORMER TRADERS WHO LAUNCHED A MASSIVE MARKETMOVING TRADING SPREE LAST YEAR IN THE EXCHANGE'S TREASURYBOND FUTURES PIT THE EXCHANGE FINED DARRELL M ZIMMERMAN 15 MILLION AND FINED ANTHONY CATALFO 750000 FOR THE HUGE SERIES OF TRADES WHICH OCCURRED IN OCTOBER 1992 AND WEREN'T AUTHORIZED BY CUSTOMERS OR THE TRADERS' CLEARING FIRMS AT THE CBOT IT SAID THE TWO MEN WERE GUILTY OF FRAUDULENT DISHONORABLE AND DISHONEST CONDUCT BOTH MEN HAVE BEEN INDICTED ON FRAUD CHARGES BY THE US ATTORNEY'S OFFICE IN CHICAGO NEITHER HAS TRADED AT THE CBOT SINCE THE EPISODE OCCURRED AND YESTERDAY NEITHER COULD BE REACHED FOR COMMENT THE CBOT SAID MR ZIMMERMAN BOUGHT ABOUT 146 MILLION OF TREASURYBOND OPTIONS CONTRACTS WITHOUT SUFFICIENT CAPITAL TO PAY FOR THE TRADES PROSECUTORS HAVE ALLEGED THAT MR ZIMMERMAN THEN BEGAN SELLING TREASURYBOND FUTURES CONTRACTS IN HUGE QUANTITIES IN AN EFFORT TO MOVE THE TREASURYBOND MARKET AND MAKE THE OPTIONS TRADES PROFITABLE MR CATALFO THE CBOT SAID BOUGHT ABOUT 22 MILLION OF TREASURYBOND OPTIONS WITH INSUFFICIENT CAPITAL TO GUARANTEE THE TRANSACTIONS 9312160086 931216 GLOBALINVESTMENT FIRM SELECTS LEADER WHO FAVORS US MARKET BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE ALL OF THE HOOPLA SURROUNDING FOREIGN MARKETS ANNE M TATLOCK SLATED TO BECOME PRESIDENT OF FIDUCIARY TRUST CO INTERNATIONAL FINDS HERSELF FAVORING THE US MARKET MS TATLOCK 54 YEARS OLD WAS ELECTED PRESIDENT OF THE GLOBALMONEYMANAGEMENT FIRM WHICH HANDLES 28 BILLION EFFECTIVE JAN 1 SHE WILL SUCCEED LF BOKER DOYLE WHO WILL BECOME CHAIRMAN OF THE EXECUTIVE COMMITTEE AND RETIRE IN 1996 THE APPOINTMENT TO BE ANNOUNCED TODAY MAKES MS TATLOCK CURRENTLY FIDUCIARY'S EXECUTIVE VICE PRESIDENT IN CHARGE OF INSTITUTIONAL GLOBAL EQUITY INVESTMENT ONE OF THE HIGHESTRANKING WOMEN IN THE INVESTMENT MANAGEMENT FIELD MS TATLOCK WHO JOINED FIDUCIARY IN 1984 IS A HIGHLY RESPECTED MONEY MANAGER WITH 31 YEARS EXPERIENCE CLIENTS AND COLLEAGUES SAY SHE IS A VERY COMPETITIVE PERSON AND STRONG TEAM PLAYER A RARE COMBINATION IN A BUSINESS KNOWN FOR ITS BIG EGOS DESCRIBING MS TATLOCK AS A PRETTY AWESOME TENNIS PLAYER FIDUCIARY SENIOR VICE PRESIDENT SHEILA COCO SAID I'VE NEVER MET ANYBODY WITH HER ENERGY MS COCO ADDED THAT MS TATLOCK BELIEVES THAT WE'RE ALL RESPONSIBLE FOR THE OVERALL BUSINESS SHOULD SUPPORT EACH OTHER AND THAT WE'RE VERY MUCH A TEAM MS TATLOCK IS ALSO CONSISTENT THE VASSAR COLLEGE GRADUATE STILL MANAGES MONEY FOR THE FIRST ACCOUNT SHE HAD WHEN SHE BEGAN WORKING FOR THEN SMITH BARNEY & CO THREE DECADES AGO OVER 30 YEARS SHE'S BEEN RUNNING ABOUT PLUS 20 IN AVERAGE ANNUAL INVESTMENT RETURNS SAID JOHN HOLLERN A GENERAL PARTNER AT HOLLYBROOK & CO A FAMILY PARTNERSHIP IN MINNEAPOLIS ANNE TATLOCK IS AN EXCEPTIONAL PROFESSIONAL SAID RANDALL A HACK PRESIDENT OF PRINCETON UNIVERSITY INVESTMENT CO IN PRINCETON NJ SHE IS A VERY ASTUTE PORTFOLIO MANAGER BUT SHE IS ALSO A THOUGHTFUL GLOBAL STRATEGIST SHE HAS A VERY GOOD GRASP OF THE OPPORTUNITIES THAT EXIST GLOBALLY AND TAKES ADVANTAGE OF THEM FOR HER CLIENTS DURING THE PAST DECADE FIDUCIARY'S ASSETS UNDER MANAGEMENT HAVE GROWN FOURFOLD AND IN THE PAST FIVE YEARS THE FIRM'S GLOBAL EQUITY PORTFOLIOS HAVE ACHIEVED ANNUALIZED RETURNS OF 1394 COMPARED WITH 823 FOR THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX AS MS TATLOCK TAKES OVER FIDUCIARY'S REINS SHE IS FACED WITH SELECTING AMONG A HOST OF MARKETS WORLDWIDE THAT LOOK LIKE GOOD INVESTMENT OPPORTUNITIES SHE PREDICTED 1994 WILL BE A GOOD YEAR FOR WORLD STOCK MARKETS ALTHOUGH POSSIBLY NOT AS BUOYANT AS THIS YEAR THERE CONTINUES TO BE EXCESS AVAILABILITY OF CAPITAL LABOR AND ENERGY WHICH CAN FOSTER A LOW INFLATIONARY MODERATE GROWTH ENVIRONMENT WORLDWIDE THAT'S POSITIVE FOR STOCK MARKETS SHE SAID BUT AMONG MAJOR MARKETS THE PLACE TO BE SHE ARGUES IS ON THE HOME TURF ON FUNDAMENTALS THE US STOCK MARKET MAY HAVE THE BEST UNDERPINNINGS SHE SAID THE BIG POSITIVE WILL BE BETTER CORPORATE PROFITABILITY THAN IS GENERALLY EXPECTED AMONG OTHER MAJOR MARKETS MS TATLOCK FAVORS FRANCE THE NETHERLANDS AND SWITZERLAND EACH OF WHICH SHOULD BE BOLSTERED BY FALLING INTEREST RATES A PICKUP IN ECONOMIC GROWTH AND THE FACT THAT MOST LARGE EUROPEAN CORPORATIONS ARE UNDERGOING RESTRUCTURING SIMILAR TO THAT US COMPANIES WENT THROUGH BUT SHE WARNED THAT EUROPE'S RIGID LABOR LAWS WILL MAKE THE RESTRUCTURING PROCESS LESS SMOOTH THAN IN THE US BECAUSE IT IS STILL IN RECESSION AND THE IMMEDIATE CORPORATE EARNINGS OUTLOOK IS POOR JAPAN IS A STOCK MARKET FOR THE PATIENT INVESTOR SHE ARGUED EVEN SO SHE IS CHEERED BY THE CORPORATE RESTRUCTURING GOING ON THERE AND SIGNS THAT THE GOVERNMENT IS REORIENTING MORE OF ITS POLICIES TOWARD INCREASING DOMESTIC DEMAND OPPORTUNITIES IN EMERGING STOCK MARKETS ARE PROMPTING FIDUCIARY TO UNDERWEIGHT ITS EQUITY PORTFOLIOS IN EUROPE AND JAPAN FUNDS NORMALLY ALLOCATED TO TOKYO ARE BEING INVESTED ELSEWHERE IN SOUTHEAST ASIA AND MONEY FROM EUROPE IS BEING DIVERTED TO LATIN AMERICA THE STRENGTH OF THE PACIFIC RIM EXJAPAN IS LIKELY TO CONTINUE MS TATLOCK SAID BUT THE VALUES TO THE INVESTOR ARE FAR BETTER IN LATIN AMERICA PARTICULARLY MEXICO SHE IS ALSO HIGH ON ARGENTINA AND SEES ENCOURAGING OPPORTUNITIES IN BRAZIL 9312160085 931216 YOUR MONEY MATTERS MARKET DISCOUNT' MUNIS TAKE A LITTLENOTICED TAX BITE BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL FOR MANY INVESTORS TAXFREE BONDS LOOK ESPECIALLY ATTRACTIVE THESE DAYS BECAUSE OF THE NEW TAX LAW BUT THAT SAME LAW CONTAINS A LITTLENOTICED WRINKLE THAT CAN LEAD TO A TRICKY TAX COMPLICATION FOR PEOPLE WHO BUY SOME TAXFREE BONDS UNSUSPECTING INVESTORS WHO SNAP UP THESE BONDS MAY DISCOVER THAT THEY NEED TO HIRE HIGHPRICED ACCOUNTING HELP TO FIGURE OUT HOW TO ACCOUNT FOR ANY GAINS THEY MAKE WHEN THEY SELL THESE BONDS OR WHEN THE BONDS COME DUE ALTHOUGH THE INTEREST INCOME GENERATED BY TAX FREE BONDS IS INDEED TAXFREE INVESTORS ARE LIABLE FOR INCOME TAX ON THEIR PROFIT IF THEY GET MORE THAN THEY PAID FOR A BOND WHEN THEY SELL IT OR REDEEM IT AT MATURITY HOW THAT PROFIT IS TAXED IS THE RUB UNDER THE NEW LAW PART OR ALL OF ANY GAIN THE INVESTOR MAKES FROM BUYING THESE BONDS IN THE SECONDARY MARKET AND LATER SELLING THEM OR HOLDING THEM TO REDEMPTION MAY BE TAXED AS ORDINARY INCOME SAYS ROBERT WILLENS A MANAGING DIRECTOR AT LEHMAN BROTHERS THE NEW RULE APPLIES TO MARKETDISCOUNT BONDS PURCHASED AFTER APRIL 30 OF THIS YEAR UNDER THE OLD LAW THE 1000 GAIN WOULD BE TREATED AS A CAPITAL GAIN AND THUS WOULD BE TAXED AT A TOP RATE OF ONLY 28 SAYS MARK L SHIFKE A PARTNER AT THE LAW FIRM OF DAVIS POLK & WARDWELL IN NEW YORK BUT UNDER THE NEW LAW THAT GAIN WOULD BE CONSIDERED ORDINARY INCOME HE SAYS ORDINARY INCOME UNDER THE NEW LAW COULD BE TAXED AT A MAXIMUM MARGINAL RATE OF 396 RETROACTIVE TO JAN 1 1993 THIS NEW RULE IS VERY IMPORTANT FOR INVESTORS TO KEEP IN MIND WARNS RICHARD J MOYNIHAN PRESIDENT OF THE DREYFUS MUNICIPALBOND FUNDS WHICH MANAGE ABOUT 30 BILLION PEOPLE WHO ARE ACCUSTOMED TO THE OLD LAW MAY BE VERY SURPRISED BY HOW BIG A DIFFERENCE THE NEW LAW CAN MAKE THIS NEW LAW PROBABLY WILL HIT THEIR POCKETBOOKS SEVERELY HE SAYS INDIVIDUAL INVESTORS HOLD ABOUT 77 OF THE MORE THAN 12 TRILLION OF MUNICIPAL SECURITIES OUTSTANDING ACCORDING TO FIGURES COMPILED BY THE PUBLIC SECURITIES ASSOCIATION THE NEW TAX COMPLICATION DOESN'T MEAN THEY SHOULD FORSAKE MUNIS IN THE FUTURE ONLY THAT THEY SHOULD BE EXTRA CAREFUL ABOUT WHAT BONDS THEY BUY I'M BUYING MUNIS NOW SAYS ROBERT D HORMATS VICE CHAIRMAN OF GOLDMAN SACHS INTERNATIONAL MANY PEOPLE DON'T REALIZE THE MAGNITUDE OF THEIR TAX LIABILITIES AND ONCE THEY SEE THAT THEY'RE GOING TO TAKE ANOTHER LOOK AT MUNIS HE ALSO POINTS OUT THAT TAXEXEMPT BONDS NOW OFFER UNUSUALLY ATTRACTIVE YIELDS COMPARED WITH TAXABLE BONDS SUCH AS US TREASURY ISSUES LIKE MANY OTHER SOPHISTICATED INVESTORS MR HORMATS BUYS NEWLY ISSUED BONDS ANOTHER REASON FOR BUYING MUNIS NEWISSUE VOLUME WHICH SET A RECORD THIS YEAR IS LIKELY TO DECLINE IN 1994 THUS REDUCING SUPPLY AT A TIME WHEN INVESTOR DEMAND IS LIKELY TO BE VERY KEEN INVESTMENT BANKERS AND ANALYSTS SAY AT THE SAME TIME MANY BONDS ISSUED A DECADE OR SO AGO WILL BE CALLED OR REDEEMED PRIOR TO THEIR SCHEDULED MATURITY DATE BY ISSUERS EAGER TO CUT BORROWING COSTS A LARGE WAVE OF REDEMPTIONS IS SCHEDULED FOR JANUARY INVESTORS WHO WANT TO AVOID THIS HEADACHE HAVE SEVERAL OPTIONS ONE WAY OF COURSE IS SIMPLY TO AVOID MARKETDISCOUNT BONDS WHENEVER POSSIBLE INSTEAD BUY NEW BOND ISSUES AT THE TIME OF ISSUANCE THAT'S OFTEN THE SMARTEST WAY TO BUY TAXEXEMPT BONDS ANYWAY BECAUSE PRICE MARKUPS IN THE SECONDARY MARKETS OFTEN ARE STEEP ESPECIALLY FOR SMALL BLOCKS OF BONDS SUCH AS 5000 OR 10000 THE NEW TAX LAW WON'T AFFECT INVESTORS WHO BUY NEW ISSUES OF ORIGINALISSUE DISCOUNT BONDS OR OID BONDS WHICH ARE ORIGINALLY SOLD AT A DISCOUNT FROM FACE VALUE BUT IT COULD AFFECT INVESTORS WHO BUY OID BONDS IN THE RESALE MARKETS IN THE HOUSESENATE CONFERENCE REPORT ON THE NEW TAX LAW A MARKETDISCOUNT BOND IS DEFINED GENERALLY AS A BOND THAT IS ACQUIRED FOR A PRICE THAT IS LESS THAN ITS FACE AMOUNTOR IN THE CASE OF ORIGINALISSUE DISCOUNT BONDS AT A PRICE THAT IS LESS THAN THE AMOUNT OF THE ISSUE PRICE PLUS ACCRUED OID ANOTHER IDEA IS TO BUY MUNICIPAL BONDS SELLING ABOVE THEIR FACE VALUE THESE ARE KNOWN AS PREMIUM BONDS THIS STRATEGY OFTEN PUZZLES INVESTORS BECAUSE IT CAN SOUND CRAZY TO PAY MORE THAN A BOND'S FACE VALUE BUT IT CAN MAKE GREAT SENSE INVESTMENT MANAGERS SAY PREMIUM BONDS OFTEN YIELD SLIGHTLY MORE THAN OTHER COMPARABLE BONDS AND TYPICALLY THEIR PRICES ARE LESS VOLATILE IN THE RESALE MARKET THAN BONDS OF THE SAME MATURITY SELLING AT CLOSE TO FACE VALUE OR AT A DISCOUNT THIS NEW LAW CERTAINLY COULD BOLSTER DEMAND FOR PREMIUM BONDS SAYS THOMAS C SPALDING JR VICE PRESIDENT AND MANAGER AT NUVEEN ADVISORY CORP A UNIT OF JOHN NUVEEN & CO IN CHICAGO SOME PEOPLE MAY BE TEMPTED INSTEAD TO FORGET ABOUT BUYING INDIVIDUAL BONDS AND INSTEAD BUY SHARES OF MUTUAL FUNDS THUS LETTING THE PROFESSIONAL MANAGER WORRY ABOUT THE ACCOUNTING INTRICACIES BUT MUTUALFUND MANAGERS SAY THEY ARE NOT GOING TO IGNORE MARKETDISCOUNT BONDS ALTOGETHER SIMPLY BECAUSE OF THE NEW LAW SEVERAL MONEY MANAGERS SAY THAT MARKETDISCOUNT BONDS MAY BE HIGHLY ATTRACTIVE FOR OTHER REASONS AND THAT TAXES NEVER SHOULD BE THE SOLE FACTOR BEHIND ANY INVESTMENT DECISION BUT THE NEW LAW IS LIKELY TO HAVE AN IMPACT WE'RE COGNIZANT OF THE FACT THAT THE TAXABILITY OF THE APPRECIATION OF MARKETDISCOUNT BONDS IN EFFECT REDUCES THE TOTAL RETURN WE ARE TRYING TO PROVIDE OUR CUSTOMERS SAYS MR MOYNIHAN SO TO THE EXTENT WE CAN I'M CERTAIN WE'RE GOING TO BE AVOIDING MARKET DISCOUNTS 9312160084 931216 LEISURE & ARTS THE GALLERY CUTLERY AND PORCELAIN FIT FOR A KING BY PAUL LEVY VERSAILLES FRANCE THERE ARE SUMMERLIKE CROWDS AT THE PALACE OF VERSAILLES THEY HAVE COME TO SEE HOW THE PEOPLE OF THE ANCIEN REGIME LIVED OR AT LEAST HOW THEY ATE FOR IN THE AFRICAN AND CRIMEAN ROOMS NEWLY RESTORED FOR THE OCCASION BY THE SPONSOR LOUIS VUITTONMOET HENNESSY IS A SPECTACULAR EXHIBITION VERSAILLES AND THE ROYAL TABLES OF EUROPE UNTIL FEB 27 THAT SHOWS HOW THE OTHER HALF LAID ITS TABLES FROM THE 17TH TO THE 19TH CENTURIES LOUIS XIV SET THE STYLE AND THE REST OF THE CROWNED HEADS OF EUROPE FROM PORTUGAL AND ENGLAND TO SCANDINAVIA AND RUSSIA FOLLOWED WHICH WAS JUST AS WELL AS ALMOST ALL THE SILVER AND GOLD TABLEWARE AND SERVING PIECES AS WELL AS MUCH OF THE SEVRES PORCELAIN SHOWN HERE HAS HAD TO BE BORROWED FROM THEIR DESCENDANTS LOUIS ALL THE VERSAILLES LOUISES IN FACT REGARDED THEIR SUPPLY OF SILVER AND GOLD AS JUST SO MUCH PRECIOUS METAL HAVING IT TRANSFORMED INTO WORKS OF ART BY THE EXQUISITE CRAFTSMANSHIP AVAILABLE TO THE COURT WAS JUST ANOTHER WAY OF PUTTING IT ON DEPOSIT WHEN IT WAS NEEDED AS THE GOLD PLATE WAS IN 1709 TO FINANCE THE WAR OF THE SPANISH SUCCESSION LOUIS XIV JUST MELTED IT DOWN FOR COINAGE LOUIS XV COMMISSIONED EIGHT COMPLETE SERVICES EACH CONTAINING SEVERAL HUNDRED POUNDS OF PRECIOUS METAL NOT A SCRAP OF IT SURVIVES FORTUNATELY THE OTHER ROYAL HOUSES OF EUROPE WERE EITHER MORE CAREFUL OR LESS NEEDY SO THEIR SEVRES PORCELAIN AND THE FRENCH PLATE THEY COMMISSIONED FROM THE SAME CRAFTSMEN ESPECIALLY THOMAS GERMAIN AND LATER HIS SON FRANCOISTHOMASARE STILL EXTANT IT WAS PART OF LOUIS XIV'S POLICY OF CULTURAL IMPERIALISM TO SEE THAT HE SET THE FASHIONS FOR ALL EUROPE AND HE ACHIEVED THIS WITH WELLAIMED GIFTS OF FRENCH TABLEWARE AND PORCELAIN IN DOING SO HE WAS SHOWING THE SAME CAST OF MIND THAT LED HIM TO ASSEMBLE HIS NOBLES AROUND HIM AT VERSAILLES TO KEEP THEM FROM BUILDING RIVAL POWER BASES IN THEIR OWN FIEFS OF COURSE IT WAS THIS STRATEGY FOR DEALING WITH HIS OWN NOBLES THAT NECESSITATED THE GRAND TABLE SETTINGS TO SET THE FASHIONS AND KEEP THE NOBLES IN ORDER HE DECIDED TO DO EVERYTHING IN PUBLIC AT THE BEGINNING OF HIS REIGN BEFORE HE MOVED THE COURT PERMANENTLY TO VERSAILLES IN 1682 BANQUETS WERE ONLY HELD TO CELEBRATE THE MARRIAGES OF ROYAL PRINCES AND THE KING WOULD EVEN DINE IN PRIVATE WITH HIS LADIES AT MARLY BUT AT VERSAILLES HE NORMALLY TOOK THE EVENING MEAL IN PUBLIC WITH HIS FAMILY AS A FORMAL GRAND COUVERT SERVED BY 20 OFFICIALS LUNCH WAS OFTEN A PETIT COUVERT TAKEN ALONE IN HIS ROOM THE GRAND COUVERT REQUIRED TWO SYMBOLIC OBJECTS TO BE ON THE TABLE FIRST THE NEF A SILVER OR GOLD OBJECT SHAPED LIKE A SHIP WHICH CONTAINED THE KING'S NAPKIN THE TABLE LINENS CURIOUSLY WERE USUALLY RENTED AND SECOND THE CADDINET A PLATE WITH A COFFER SITTING ON IT IN WHICH THE KING'S CUTLERY COULD BE LOCKED SO THAT IT COULDN'T BE POISONED LOUIS XV SUFFERED HE HAD AN AVERSION TO PUBLIC MEALS AND MANAGED TO LIMIT GRANDS COUVERTS TO TWICE A WEEK HE KEPT THE SUN KING'S RITUAL THOUGH IN THAT THE MUSICIANS PLAYED THE SAME SYMPHONIES AND THE ACTORS THE SAME PLAYS UNLIKE HIS GREATGRANDFATHER HOWEVER LOUIS XV WAS A FOODIE HE HAD KITCHENS BUILT IN HIS PRIVATE APARTMENTS AND KEPT COOKBOOKS IN HIS LIBRARY BUT THE CUSTOM OF SERVICE A LA FRANCAISE IN WHICH ALL THE FOOD WAS SERVED AT ONCE USUALLY IN THREE REMOVES WITH BOTH SWEET AND SAVORY DISHES IN EACH MEANT FIRST THAT YOU COULD ONLY EAT WHAT YOU COULD REACH AS THE SERVANTS DID NOT PASS THE FOOD TO THE GUESTS AND SECOND THAT IT WAS ALWAYS COLD MOREOVER GLASSES WERE NOT KEPT ON THE TABLE IF YOU WANTED A GLASS OF WINE YOU HAD TO SUMMON A FOOTMAN AND ASK FOR IT MODERN SERVICE A LA RUSSE IN WHICH THE COURSES ARE SERVED IN SUCCESSION AND HOT DID NOT ARRIVE UNTIL THE 19TH CENTURY NEAR THE END OF THE PERIOD COVERED BY THIS EXHIBITION SO LIFE FOR THE GASTRONOMICALLY INCLINED ROYALS WAS NOT A PIECE OF CAKE OR A BOWL OF CHERRIES EITHER THOUGH THE WHEREWITHAL FOR SERVING BOTH IS WELLREPRESENTED IN THIS SHOW SOME OF THE DISPLAYS IN THIS SHOW ESPECIALLY OF THE CELESTIAL BLUE SEVRES ARE ETHEREALLY BEAUTIFUL OTHERS SUCH AS THE VAST 1805 EGYPTIAN SERVICE GIVEN TO CZAR ALEXANDER I BY NAPOLEON I ARE MONUMENTALLY BREATHTAKINGLY HIDEOUS LIKE A TABLETOP STAGE SET FOR AIDA WHAT IS MISSING OF COURSE IS THE FOOD ITSELF TO FIND OUT ABOUT THE FOOD YOU HAVE TO TAKE A BRISK WALK THROUGH THE TOWN TO THE PALATIAL NEW TRIANON PALACE HOTEL IN WHICH YOU'LL FIND CHEF GERARD VIE'S MICHELIN TWOSTAR RESTAURANT LES TROIS MARCHES WHERE HE HAS RECREATED SOME OF THE GASTRONOMICALLY MORE PROMISING ROYAL RECIPES I TASTED A VERY GOOD DISH OF FAT PULLET WITH CRAYFISH FROM A MENU NAMED AFTER MME DU BARRY MR VIE IS CURRENTLY UP TO THE TIME OF EMPRESS EUGENIE AND FROM NOW UNTIL DEC 28 YOU CAN EAT THE SORT OF MENU THAT WOULD HAVE BEEN GRACED BY THE 11 SURVIVING ELEMENTS OF THE GHASTLY CASTMETAL CENTERPIECE MASSIVE AND INDUSTRIALLY PRODUCED THAT TAKES UP THE SMALL ROOM AT THE VERY END OF THE EXHIBITION IT REPRESENTS THE ARTS CRAFTS AND SCIENCES AND WAS ONCE COVERED IN SILVER PLATE WHICH ALL MELTED AWAY IN THE TUILLERIES FIRE OF 1871 9312160083 931216 LETTERS TO THE EDITOR BIG APPETITES IN YOUR NOV 18 ARTICLE INVESTIGATION OF MET LIFE'S SALES TACTICS IS BEING EXPANDED BY TEXAS REGULATORS YOU REFER TO COMMISSIONHUNGRY MET AGENTS MAKES ME WONDER IF THESE ARE SIMILAR TO SALARYHUNGRY COLUMNISTS 9312160082 931216 PWA GETS 6 MORE MONTHS TO SETTLE AMR DISPUTE OTTAWA AMR CORP AGREED TO GIVE PWA CORP AN ADDITIONAL SIX MONTHS TO SETTLE A CONTRACTUAL DISPUTE THAT HAS STALLED AMR'S PLANS TO ACQUIRE A MAJOR INTEREST IN PWA'S FINANCIALLYTROUBLED AIRLINE UNIT THE DEADLINE FOR THE IMPLEMENTATION OF THE AGREEMENT HAS NOW BEEN SET AT JUNE 30 1994 INSTEAD OF DEC 31 THE ANNOUNCEMENT CAME SHORTLY AFTER TALKS BROKE DOWN BETWEEN PWA PARENT OF CANADIAN AIRLINES INTERNATIONAL LTD AND RIVAL AIR CANADA OVER PWA'S EFFORTS TO WITHDRAW FROM A COMPUTERSERVICES CONTRACT WITH GEMINI GROUP AUTOMATED DISTRIBUTION SYSTEMS INC PWA'S WITHDRAWAL FROM GEMINI WAS A KEY CONDITION OF ITS PARTNERSHIP AGREEMENT WITH AMR PARENT OF AMERICAN AIRLINES AMR FORT WORTH TEXAS AGREED LAST YEAR TO BUY A ONETHIRD INTEREST IN PWA FOR 246 MILLION CANADIAN DOLLARS US1844 MILLION PROVIDED THAT CANADIAN AIRLINES TRANSFER DATAPROCESSING BUSINESS FROM GEMINI TO AMR'S RIVAL SABRE NETWORK BY DEC 31 CANADA'S COMPETITION TRIBUNAL APPROVED LAST MONTH CANADIAN AIRLINES' WITHDRAWAL FROM GEMINI WHICH IS JOINTLY OWNED BY PWA AIR CANADA AND AN AFFILIATE OF UAL CORP'S UNITED AIRLINES 9312160081 931216 POLITICS & POLICY CLINTON IN INTERVIEW SHRUGS OFF RUSSIAN VOTE FOR ULTRANATIONALISTS AND FRETS OVER AMA POLICY BY JEFFREY H BIRNBAUM AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON DISCOUNTED EXTREME NATIONALIST VLADIMIR ZHIRINOVSKY'S STRONG SHOWING IN RUSSIA'S RECENT ELECTION AND VOICED CONTINUED SUPPORT FOR PRESIDENT BORIS YELTSIN AND HIS REFORM MOVEMENT IN AN OVAL OFFICE INTERVIEW WITH THE WALL STREET JOURNAL MR CLINTON SAID THAT MANY RUSSIANS NEOPHYTES TO DEMOCRACY WERE SWAYED BY CLEVERLY VAGUE AND PATRIOTIC TELEVISION COMMERCIALS USED BY MR ZHIRINOVSKY'S PARTY I WOULD BET NEARLY ANYTHING THAT MOST RUSSIANS WHO VOTED FOR MR ZHIRINOVSKY AND FOR THAT PARTY NOT ONLY DID NOT SUBSCRIBE TO A LOT OF THOSE POSITIONS THAT HE'S TAKEN BUT WERE NOT EVEN AWARE OF THEM MR CLINTON ALSO ASSERTED THAT THE QUICK STRINGENT ECONOMIC CHANGES IN RUSSIA DEMANDED BY THE WEST AND BY INTERNATIONAL LENDING INSTITUTIONS MAY HAVE BEEN TOO HARSH AND CONTRIBUTED TO THE RUSSIAN DISCONTENT REFLECTED IN THE ELECTION RESULTS THE INTERVIEW CAME AS A NEW NATIONWIDE WALL STREET JOURNAL/NBC NEWS POLL SHOWED A SUBSTANTIAL RISE IN PUBLIC APPROVAL FOR HIS PERFORMANCE ON THE JOB TO 56 THE HIGHEST LEVEL SINCE MARCH IN THE COURSE OF THE WIDERANGING JOURNAL INTERVIEW MR CLINTON SPOKE GLOWINGLY ABOUT THE POTENTIAL FOR SUCH COMBINATIONS AS THE ONE PROPOSED BY BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC THE PRESIDENT SAID HE HADN'T SPECIFICALLY STUDIED THE ANTITRUST IMPLICATIONS OF A BELL ATLANTICTCI DEAL BUT HE SAID THE IMPACT OF SUCH TRANSACTIONS CAN BE QUITE GOOD FOR THE ECONOMY AND ARE AN AREA OF ENORMOUS ECONOMIC OPPORTUNITY HE ALSO PREDICTED THAT ADVANCES IN TELECOMMUNICATIONS COULD CREATE NEW HIGHWAGE JOBS ACKNOWLEDGED THAT THE FIGHT OVER WHETHER TO CUT MILITARY SPENDING IN THE NEXT BUDGET MORE DEEPLY THAN EXPECTED IS A PROBLEM BUT HE ASSERTED THAT THE MUCHPUBLICIZED TUGOFWAR BETWEEN MILITARY SPENDING AND FUNDING FOR DOMESTICPOLICY INITIATIVES ISN'T A STARK EITHEROR THING THE PRESIDENT INSISTED THAT THERE ARE SOME OTHER OPTIONS INCLUDING ONE HE SAID HE DOESN'T LIKE EXCEEDING THE STRICT SPENDING LIMITS SET IN THIS YEAR'S DEFICITREDUCTION BILL SAID HE WAS REAL DISAPPOINTED THAT THE AMERICAN MEDICAL ASSOCIATION BACKED AWAY FROM ITS PREVIOUS ENDORSEMENT OF MANDATING EMPLOYERS TO PAY FOR PART OF HEALTH COVERAGE FOR THEIR EMPLOYEES A CENTRAL COMPONENT OF THE CLINTON HEALTHCARE PLAN THE PRESIDENT EXPRESSED THE HOPE THAT THE PHYSICIANS' GROUP WHICH IS RIVEN BY DISAGREEMENTS OVER SEVERAL ASPECTS OF THE HEALTHCARE PLAN WILL EVENTUALLY RETURN TO THE FOLD TO HELP IT ALONG MR CLINTON AND HILLARY RODHAM CLINTON TODAY PLAN TO MEET WITH REPRESENTATIVES OF OTHER PHYSICIAN GROUPS THAT SUPPORT THE EMPLOYER MANDATE DUCKED A QUESTION ABOUT RAISING THE MINIMUM WAGE NEXT YEAR I DON'T KNOW WHAT'S GOING TO HAPPEN ON THAT MR CLINTON SAID ADDING THAT HE WILL DECIDE IN THE COMING WEEKS WHETHER TO PUSH FOR IT THE NEW JOURNAL/NBC POLL WHICH WAS CONDUCTED BY DEMOCRATIC POLLSTER PETER HART AND REPUBLICAN ROBERT TEETER FOUND THAT THE MORE FAVORABLE VIEW OF THE PRESIDENT'S PERFORMANCE EXTENDS TO BOTH DOMESTIC AND FOREIGN MATTERS IN THE POLL 48 OF THOSE SURVEYED APPROVED OF HIS HANDLING OF THE ECONOMY WHILE 39 DISAPPROVED THAT IS THE FIRST TIME SINCE LAST SPRING THAT THE PUBLIC'S YEAS HAVE EXCEEDED ITS NAYS AMERICANS APPROVED HIS HANDLING OF FOREIGN POLICY BY A 45TO40 MARGIN THOSE SURVEYED SEEM TO THINK MR CLINTON HAS ACCOMPLISHED AT LEAST AS MUCH AS OTHER PRESIDENTS IN THEIR FIRST YEARS ASKED TO COMPARE MR CLINTON TO HIS PREDECESSORS 32 SAID HE HAD ACCOMPLISHED A LOT WHILE 44 SAID HE HAD ACCOMPLISHED AN AVERAGE AMOUNT BUT THERE ALSO STILL SEEMS TO BE A FEAR THAT HE'S TAKING ON TOO MANY TASKS 52 AGREED WITH THE STATEMENT THAT HE HAS TRIED TO TACKLE TOO MANY OF THE COUNTRY'S SERIOUS PROBLEMS IN THE JOURNAL INTERVIEW MR CLINTON DEFENDED HIS HEALTHCARE PLAN ASSERTING THAT HUNDREDS OF DOCTORS HELPED TO PUT IT TOGETHER AND THAT IT ENJOYS WIDE SUPPORT IN THE MEDICAL COMMUNITY DESPITE THE AMA'S STAND OTHER DOCTORS HE SAID CLEARLY UNDERSTAND THAT THEIR PROBLEMS WITH UNCOMPENSATED CARE AND WITH RISING ADMINISTRATIVE COSTS AND COSTSHIFTING AS WELL AS LACK OF PREVENTIVE CARE WILL NEVER BE SOLVED UNTIL THERE IS UNIVERSAL COVERAGE ON THE ISSUE OF MILITARY SPENDING MR CLINTON SAID HE IS VERY CONCERNED ABOUT MAKING MORE CUTS I THOUGHT WE HAD IN THIS LAST BUDGET CUT DEFENSE ABSOLUTELY JUST AS MUCH AS WE COULD AND MAYBE A LITTLE MORE AND SO IT'S A BIG ISSUE WITH ME IT'S NOT JUST THE DEFENSE DEPARTMENT ONE WAY TO EASE THE PRESSURE ON THE DEFENSE BUDGET HE SAID WOULD BE FOR CONGRESS TO APPROVE HIS PROPOSED CHANGES IN PROCUREMENT POLICIES HE ALSO HINTED THAT HE WOULD EMBRACE A SOMEWHAT SMALLER VERSION OF THE 22 BILLION ANTICRIME BILL THAT PASSED THE SENATE SAVINGS FROM THE SCALINGBACK OF THAT MEASURE COULD HELP EASE THE DEFENSESPENDING CRUNCH IN DISCUSSING RUSSIA DURING THE INTERVIEW MR CLINTON SAID MR ZHIRINOVSKY'S STRONG SHOWING IN THE PARLIAMENTARY ELECTION ISN'T A FATAL BLOW TO DEMOCRATIC FORCES I WOULDN'T COUNT YELTSIN AND THE REFORMERS OUT HE SAID THE PRESIDENT DECLINED TO SAY WHETHER HE INTENDS TO MEET WITH MR ZHIRINOVSKY WHEN HE VISITS MOSCOW NEXT MONTH I HAVEN'T TALKED ABOUT IT WITH ANYBODY HE SAID BUT IN A LATER NEWS CONFERENCE STRONGLY DENOUNCED MR ZHIRINOVSKY'S EXTREME NATIONALIST ANTIFOREIGNER REMARKS NO AMERICAN INDEED NO CITIZEN OF THE WORLD WHO READ SUCH COMMENTS COULD FAIL TO BE CONCERNED HE SAID USING MR ZHIRINOVSKY'S SHOWING AS AN OBJECT LESSON MR CLINTON WARNED IN THE JOURNAL INTERVIEW THAT THE INTERNATIONAL COMMUNITY MIGHT BE PRESSING COUNTRIES IN POLITICAL AND ECONOMIC TRANSITION TOO HARD AND TOO FAST BY MAKING CONDITIONS TOO TOUGH AND FORCING THE CITIZENS OF THOSE COUNTRIES TO GO THROUGH TOO MUCH HARDSHIP TOO QUICK HE SAID THE WEST MIGHT BE RECREATING THE CONDITIONS WE ARE SEEKING SO MUCH TO MOVE AWAY FROM STILL THE PRESIDENT SAID THE RUSSIAN ELECTION RESULTS MIGHT HAVE BEEN DIFFERENT IF THE DEMOCRATIC REFORMERS HAD USED TELEVISION AS CLEVERLY AS THE EXTREMISTS A LOT OF THIS AROUND THE EDGES WOULD HAVE BEEN CHANGED I THINK WITH A DIFFERENT POLITICAL STRATEGY HE SAID BUT THESE FOLKS ARE JUST GETTING THE HANG OF THIS IT'S NOT LIKE THEY'VE BEEN DOING THIS A LONG TIME WHEN ASKED TO NAME HIS SINGLE TOP FOREIGNPOLICY PRIORITY NEXT YEAR THE PRESIDENT CITED TWO ELEVATING GLOBAL ECONOMIC ISSUES TO A CENTRAL PLACE IN FOREIGN POLICY AND MAKING SURE WE PROTECT AND PROMOTE OUR VITAL NATIONAL SECURITY INTERESTS IN THE POSTCOLD WAR WORLD BUT THEN HE ADDED A FEW MORE RUSSIA NORTH KOREA AND THE NORTH ATLANTIC TREATY ORGANIZATION AND ESPECIALLY DENUCLEARIZATION 9312160080 931216 LETTERS TO THE EDITOR TELEDYNE'S STATEMENT ON WHISTLEBLOWING REGARDING YOUR NOV 22 ARTICLE TELEDYNE STRUGGLES TO RECAPTURE MAGIC OF YESTERDAY YOU SAY ANONYMOUS LAW ENFORCEMENT OFFICIALS TOLD YOU TELEDYNE TOOK ACTIONS INTENDED TO FRIGHTEN OTHER POTENTIAL WHISTLEBLOWERS INTO STAYING QUIET THESE ARE THE FACTS TELEDYNE COOPERATED FULLY WITH LAW ENFORCEMENT AGENCIES REGARDING THE INVESTIGATION IN QUESTION A MAJOR REALIGNMENT LED TO HUNDREDS OF REASSIGNMENTS AND TERMINATIONS NONE AFFECTED BY ANYONE'S ROLE IN THE INVESTIGATION TELEDYNE REQUIRES THAT ANY EMPLOYEE AWARE OF WRONGDOING REPORT IT UNDER OUR CORPORATE INTEGRITY PROGRAMS WHICH ARE WIDELY SEEN AS MODELS IN THE INDUSTRY ANONYMOUS OFFICIALS MAKING A FALSE AND UNINFORMED CHARGE IN SUCH A POLITICALLY SENSITIVE AREA IS UNETHICAL BY THE WAY AS OUR PROXY STATEMENT CLEARLY STATES WILLIAM RUTLEDGE TELEDYNE'S CHAIRMAN AND CEO HAS BEEN WITH THE COMPANY SINCE 1986 NOT FOR 23 YEARS AS YOU STATED 9312160079 931216 BUSINESS BRIEFS CITICORP SOLD AN OFFICE BUILDING IN WASHINGTON TO A PENSIONFUND INVESTMENT POOL FOR 53 MILLION A PRICE APPROXIMATING ITS INVESTMENT AND EXCEEDING ITS BOOK VALUE BANISTER INC TORONTO WAS AWARDED A CONTRACT VALUED AT ABOUT 100 MILLION CANADIAN DOLLARS US75 MILLION TO SUPPLY GOODS AND SERVICES TO A HYDROELECTRIC PROJECT BEING BUILT IN COLOMBIA BY SKANSKA AB SWEDEN AND CONCIVILES SA COLOMBIA BALLARD MEDICAL PRODUCTS' MEDICAL INNOVATIONS CORP SUBSIDIARY HAS RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO IMMEDIATELY BEGIN MARKETING ITS FEEDINGTUBE PRODUCT THE MICKEY SKIN LEVEL GASTROSTOMY KIT NEOPROBE CORP COLUMBUS OHIO COMPLETED THE ACQUISITION OF 624 OF THE OUTSTANDING CAPITAL STOCK OF MONOCARB AB OF LUND SWEDEN IN A STOCK SWAP VALUED AT ABOUT 700000 9312160078 931216 FINANCING BUSINESS FALCON HOLDING GROUP FALCON HOLDING GROUP LOS ANGELES THIS CABLETELEVISION LIMITED PARTNERSHIP SAID IT PLANS TO REORGANIZE AS A CORPORATION SO THAT IT CAN RAISE AN ANTICIPATED 100 MILLION THROUGH A PUBLIC STOCK SALE THE PROPOSED NEW COMPANY FALCON CABLE TV INC FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 83 MILLION SHARES OF CLASS A COMMON STOCK PLUS UP TO AN ADDITIONAL 1245000 SHARES TO COVER ANY OVERALLOTMENTS OF THE SHARES OFFERED 66 MILLION WILL BE BY THE NEW COMPANY AND 17 MILLION BY CERTAIN SELLING STOCKHOLDERS THE CLASS B SHARES WILL BE CONTROLLED BY MARC B NATHANSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER AFTER THE OFFERING MR NATHANSON WILL HOLD ABOUT 765 OF FALCON'S COMBINED CLASSES OF STOCK FALCON HOLDING ONE OF THE LARGEST US CABLE TV OPERATORS IS ALSO THE GENERAL PARTNER OF FALCON CABLE SYSTEMS CO A PARTNERSHIP THAT IS TRADED ON THE AMERICAN STOCK EXCHANGE FALCON HOLDING SAID IT HAS APPLIED FOR TRADING OF THE NEW SHARES ON THE NASDAQ STOCK MARKET MERRILL LYNCH & CO WILL LEAD THE UNDERWRITING GROUP 9312160077 931216 ECONOMY US PRODUCTION JUMPED BY 09 IN NOVEMBER VEHICULAR DEMAND SPARKED SHARPEST RISE IN A YEAR OCTOBER INVENTORIES FLAT BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRODUCTION AT THE NATION'S FACTORIES MINES AND UTILITIES SHOT UP 09 IN NOVEMBER THE FEDERAL RESERVE BOARD SAID ANOTHER SIGN THAT THE INDUSTRIAL SECTOR IS GATHERING MOMENTUM AFTER A LONG PERIOD OF INERTIA THE RISE IN INDUSTRIAL PRODUCTION MARKED THE SIXTH CONSECUTIVE MONTHLY IMPROVEMENT IT FOLLOWED A 07 JUMP IN OCTOBER AND WAS THE LARGEST INCREASE IN A YEAR MUCH OF NOVEMBER'S ADDED PRODUCTION RESULTED FROM AN INCREASE IN DEMAND FOR CARS AND TRUCKS AUTO AND TRUCK PRODUCTION JUMPED 55 PRODUCTION OF MOTOR VEHICLES AND PARTS ARE UP 20 FROM A YEAR AGO THE PRODUCTION OF MOTOR VEHICLES IS PRETTY STRONG BUT WHAT IS ENCOURAGING IS THAT EVEN EXCLUDING AUTOS INDUSTRIAL PRODUCTION IS MOVING ALONG AT A PRETTY GOOD CLIP SAID THOMAS RUNIEWICZ AN ANALYST WITH THE WEFA GROUP IN BALACYNWYD PA EXCLUDING MOTOR VEHICLES OUTPUT WAS UP A SOLID 05 IN NOVEMBER OUTPUT OF CONSTRUCTION SUPPLIES AND INFORMATIONPROCESSING EQUIPMENT BOTH POSTED LARGE GAINS REFLECTING A PICKUP IN THE HOUSING SECTOR AND A CONTINUATION OF BUSINESS INVESTMENT IN CAPITAL EQUIPMENT OUTPUT OF NONDURABLE GOODS ROSE 06 LAST MONTH AFTER A MUCH SMALLER RISE IN OCTOBER OUTPUT AT MINES AND UTILITIES WAS LESS ROBUST THAN AT MANUFACTURING SITES UTILITY PRODUCTION ROSE 03 WHILE MINE OUTPUT DROPPED DUN & BRADSTREET ECONOMIST DOUG HANDLER SAID THE STRENGTH IN INDUSTRIAL PRODUCTION PROBABLY WON'T CONTINUE INTO THE FIRST QUARTER OF 1994 PEOPLE ARE RUSHING TO BUY HOMES NOW BECAUSE THEY REALIZE INTEREST RATES WILL BE HEADING UP MR HANDLER SAID THAT MEANS HOME PURCHASES EVENTUALLY WILL SLOW DOWN DAMPING PRODUCTION OF CONSTRUCTION SUPPLIES AND BUILDING MATERIALS CAR SALES WHICH ALSO ARE TIED TO INTEREST RATES ARE LIKELY TO SLOW AS WELL HE SAID INDUSTRY USED 830 OF ITS TOTAL CAPACITY LAST MONTH UP FROM 824 IN OCTOBER CAPACITY UTILIZATION HAS BEEN CREEPING UP SINCE AUGUST THE CAPACITY FIGURES ARE IMPORTANT BECAUSE THEY ARE CONSIDERED AN INDICATOR OF FUTURE INFLATION IF CAPACITY UTILIZATION GETS TOO HIGH PRODUCTION BOTTLENECKS AND PRICE INCREASES COULD FOLLOW BUT ANALYSTS SAID THAT CAPACITY FIGURES AREN'T YET HIGH ENOUGH TO CAUSE INFLATION FEARS AND OTHER INDICATORS SUGGEST THAT PRICES ARE WELL UNDER CONTROL SEPARATELY THE COMMERCE DEPARTMENT SAID BUSINESS INVENTORIES BARELY CHANGED IN OCTOBER RISING LESS THAN 01 INVENTORIES OF DURABLE GOODS INCREASED 03 WHILE STOCKPILES OF NONDURABLE GOODS FELL SALES DURING THE MONTH WERE UP HOWEVER BY 04 AS A RESULT THE INVENTORYTOSALES RATIO OR THE NUMBER OF MONTHS IT WOULD TAKE TO DEPLETE STOCKPILES AT THE CURRENT SALES PACE DIPPED TO 145 FROM 146 IN SEPTEMBER ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN NOVEMBER THE FIGURES ARE SEASONALLY ADJUSTED THE INDUSTRIAL PRODUCTION INDEX FOR NOVEMBER STOOD AT 1132 OF THE 1987 AVERAGE HERE IS A SUMMARY OF THE COMMERCE DEPARTMENT'S REPORT ON BUSINESS INVENTORIES AND SALES IN OCTOBER THE FIGURES ARE IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9312160076 931216 LEISURE & ARTS BOOKSHELF DIVERSE LIVES OF DESPERATION BY RICHARD LOCKE IN 1950 AN UNDERPAID 26YEAROLD MONTREAL NEWSPAPERWOMAN NAMED MAVIS GALLANT SOLD HER FIRST SHORT STORY TO THE NEW YORKER QUIT HER JOB AND MOVED TO PARIS TO BECOME A WRITER A PROFESSIONAL FOREIGNER HER OFTEN DICKENSIAN CHILDHOOD HAD PREPARED HER WELL FOR THIS VOCATION THE ONLY CHILD OF AN ENGLISH FATHER A PAINTER WHO DIED WHEN SHE WAS 10 AND A GERMANROMANIANFRENCH MOTHER WHO REMARRIED AND MOVED HER TO NEW YORK CITY AT 14 MAVIS GALLANT HAD BEEN SENT TO 17 SCHOOLS ALL RECALLED WITH HORROR IN TWO PROVINCES AND TWO STATES CATHOLIC AND PROTESTANT FRENCH AND ENGLISH SPEAKING COEDUCATIONAL AND SEGREGATED BEGINNING WITH A PRISONLIKE FRENCHCANADIAN CONVENT AT THE AGE OF FOUR IN ONE OF HER EARLIEST BOOKS A YOUNG WOMAN ACCUSES HER MOTHER IT WAS YOUR FAULT I MIGHT HAVE BEEN A PERSON BUT YOU MADE ME A FOREIGNER BUT AS A FOREIGN WRITER IN PARIS MAVIS GALLANT THRIVED FORTYTHREE YEARS LATER SHE IS STILL THERE STILL WRITING AND AN INTERNATIONALLY CELEBRATED AUTHOR OF TWO NOVELS TWO BOOKS OF ESSAYS REPORTAGE AND CRITICISM AND 115 STORIES COLLECTED IN EIGHT VOLUMES HER MOST RECENT ACROSS THE BRIDGE RANDOM HOUSE 198 PAGES 19 WAS WARMLY AND DESERVEDLY PRAISED AND APPEARS ON LISTS OF THE YEAR'S BEST BOOKS BUT AS ALWAYS WITH HER WORK IT WOULD BE A MISTAKE TO ASSUME IT'S EASILY ASSIMILATED MS GALLANT WRITES AS IF BORGES BECKETT AND BARTHELME HAD NEVER BEEN BORN BUT SHE HAS PERFECTED HER OWN KIND OF STRINGENT REALISM WHICH OWES A LOT TO FLAUBERT'S A SIMPLE HEART AND TO JOYCE'S DUBLINERS AND ITS STYLE OF SCRUPULOUS MEANNESS SHE IS AN INDEFATIGABLE SOCIAL AND PSYCHOLOGICAL OBSERVER UNBLINKINGLY PRECISE ABOUT MANNERS MORALS AND MONEY HER CHARACTERS LIVE IN CITIES FAR FROM NATURE IN A SOCIOECONOMIC CAGE THAT THEY EXPERIENCE AS BOTH A PRISON AND A REFUGE UNLIKE THE CHARACTERS IN THE STORIES OF SUCH AMERICAN REALISTS AS CHEEVER OR CARVER THEY ARE ALMOST NEVER GRACED WITH TRANSCENDENTAL OR HUMANISTIC YEARNINGS BUT IT'S A TRANSCENDENTALIST THOREAU WHO COULD SUPPLY THE BEST DESCRIPTION OF MS GALLANT'S CENTRAL THEME THE MASS OF MEN LEAD LIVES OF QUIET DESPERATION WHAT MAKES HER WORK UNUSUAL IS THE RANGE OF HER INVENTORY AND THE VARIETY WITH WHICH SHE EXPLORES AND DEVELOPS HER THEME IN THE 11 STORIES IN ACROSS THE BRIDGE THE TIME RUNS FROM 1933 TO 1992 THE CHARACTERS FROM A THREEMONTHOLD CANADIAN FOUNDLING TO A POLISH POLITICAL REFUGEE IN HIS MID80S THE SETTINGS OBSERVED WITH HER NOW LEGENDARY CONCENTRATION AND ACCURACY OF DETAIL FROM MONTREAL TO PARIS TO FLORIDA TO HELSINKI SHE POSITIVELY EXULTS IN THE PARTICULAR IN THE ASTONISHING GRIM DIVERSITY THAT CHANGE DEATH ABSENCE THE ADULT MYSTERIES CAN TAKE ESPECIALLY IN THE RIGID SOCIAL WORLDS OF THE FRENCH OR FRENCHCANADIAN CATHOLIC MIDDLE OR LOWERMIDDLE CLASSES HER CHARACTERS ARE OFTEN SHABBY GENTEEL LIKE THE WIDOW WHOSE GENTILITY WAS THE BRACE THAT KEPT HER UPRIGHT OR THE MONTREAL GIRLS OF THE 1950S NOTORIOUSLY VIRTUOUS NOT TRAINED TO ACCOMPANY HEROES OR TO HOLD OUT FOR DREAMS BUT JUST TO BE PATIENT MY SISTER NEVER HAD TO GET MARRIED SAYS ONE SHE ALWAYS MADE GOOD MONEY SHE BUYS HER OWN FUR COATS MOVING UP THE SOCIAL SCALE MS GALLANT IS EQUALLY ASTUTE ABOUT THE STIFLED DESPERATION OF SUNDAY LUNCH CHEZ A PARISIAN MAGISTRATE WHOSE BROTHERINLAW LOOKS LIKE HARPO AND IS SOMETHING OF A PYROMANIAC OR THE DESPERATE ROMANTIC FANTASIES OF A PARIS DOCTOR'S ADOLESCENT DAUGHTER ABOUT TO BE MARRIED OFF TO A STULTIFYING MARITIMEINSURANCE LAWYER THERE'S A FINE PORTRAIT OF A DEVOTED LITERARY IDEALIST THE OWNER OF AN IMPOVERISHED THIMBLESIZED PUBLISHING HOUSE IN PARIS THAT SPECIALIZES IN TRANSLATIONS OF EAST EUROPEAN LITERARY WORKS OF THE THIRD RANK AND NOW ALL QUITE OUTMODED BY THE EVENTS OF 1989 AND EVEN MORE CONVENTIONALLY MOVING TENDER WARM IS HER PORTRAIT OF AN OCTOGENARIAN POLISH POLITICAL REFUGEE IN CONTEMPORARY PARIS A SURVIVOR OF DACHAU A STILL ELEGANT EVEN JAUNTY FORMER TEACHER OF FRENCH WHOSE BELOVED WIFE IS BEFOGGED IN ALZHEIMER'S AT ANOTHER EXTREME OF SETTING AND CHARACTER IS A STORY SET IN MONTREAL IN 1947 ABOUT THE 17YEAROLD DAUGHTER OF A PETTY CITYHALL BUREAUCRAT WHO INVOLVES HER IN A COMPLEX ADOPTION SCAM THAT SHE ONLY HALF COMPREHENDS THIS LOWERMIDDLECLASS FRENCHCANADIAN GIRL JUST ABOUT TO GO TO SECRETARIAL SCHOOL AND PROUD OF HER BILINGUAL PROWESS OF HER FAMILY HER VIRTUE AND HER SKEPTICAL EYE ON THE SAPPY BOOZY ENGLISH LOUDMOUTH ADOPTIVE FATHER HAS A JAMESIAN BRAVERY OF INNOCENCE THAT IS UTTERLY APPEALING AND MUCH TOO SHARP TO BE SENTIMENTAL THE AUTHOR SELDOM COMMENTS IN THESE STORIES BUT IN ONE ABOUT A LINGUISTICS SCHOLAR WHO HAS SPENT 24 YEARS MAPPING A NEW LANGUAGE NOBODY CARES ABOUT MS GALLANT DESCRIBES THIS OLD EXPLORER IN TERMS THAT DO SUGGEST A RARE INSTANCE OF SELFPORTRAITURE HE COULD WATCH EUROPE AS IT DECLINED AND SANK WITH ITS PETTINESS AND FADED CRUELTY ITS CRABBED RICHNESS AND SENTIMENTALITY SOMETHING MIGHT BE DISCOVERED OUT OF SHABBINESS SOME MEASURE TAKEN OF THE PAST AND THE PRESENT NOW THAT THEY WERE GROUND AND TRAMPLED TO THE SAME SHAPE AND SIZE BUT WHAT IF HE HAD LOST HIS MIXTURE OF DUTY AND CURIOSITY HIS PROFESSIONAL HUMILITY HIS RUTHLESSNESS IN THAT CASE HE COULD START BUT HE WOULD NEVER FINISH ONE HOPES MS GALLANT NEVER DOES SHE IS CERTAINLY WORKING AT THE HEIGHT OF HER POWERS IN THESE REMARKABLE STORIES 9312160075 931216 LEISURE & ARTS TV TWO POETS A SCIENTIST AND A GENERATION OF REBELS BY DOROTHY RABINOWITZ THIS CHAPTER OF BILL MOYERS' JOURNAL SET IN THE WOODSY SPLENDOR OF NEW HAMPSHIRE CONCERNS THE MARRIAGE OF POETS DONALD HALL AND JANE KENYON IT IS NO LESS CONCERNED WITH HOW WRITING GROWS HOW A POEM WORKS THE CRUCIAL WEIGHT OF THIS WORD AS OPPOSED TO THAT THE SUBJECTS OF THIS FILM KNOW THE WEIGHT OF WORDS THEY KNOW TOO THE WEIGHT OF LIFE'S LOSSES THOSE ALREADY ENDURED AND THOSE STILL TO COME MR HALL'S BOUTS WITH CANCER DO NOT HOLD OUT THE PROMISE OF VERY MANY REMAINING YEARS WHICH DOESN'T PREVENT HIM FROM COMPORTING HIMSELF LIKE A MAN WITH A SPAN OF INFINITE POSSIBILITIES AHEAD THE MAKERS OF THIS FILM PRODUCED BY DAVID GRUBIN HAVE INDEED PROVIDED A RIDE HERE BRIMMINGLY FULL OF LIFE FULL OF TALKING AND FEELING AND THINKING OF A KIND RARELY GRANTED TELEVISION VIEWERS PUBLICTELEVISION VIEWERS INCLUDED LISTEN TO THE POET ON THE THOUGHTS HE THOUGHT AS A 12YEAROLD LYING IN BED ON WRITING ABOUT HIS FATHER ON THE PLEASURE OF MAKING A COUPLET WORK THE PLEASURE AN HOUR LONG IS ALL OURS WE HAVE HERE THE HIGHLY TOPICAL SUBJECT OF CRIMEPLEA BARGAINS ETC SPECIFICALLY IN THE ANARCHIC WORLD OF NEW YORK CITY COURTS LEGAL AID ATTORNEYS HOLD FORTH FORCEFULLY ON THE INJUSTICE DONE CLIENTS UNABLE TO AFFORD BAIL BUT THE VOICE THAT SOUNDS ABOVE ALL THE OTHERS BELONGS TO VETERAN JUDGE HAROLD ROTHWAX WHOSE ELOQUENT DETESTATION OF PANACEAS LIKE REHABILITATION AND OF EXCUSES FOR CRIMINALITY INFORMS EVERY WORD HE UTTERS AND EVERY LOOK HE CASTS AT THE LONG RAP SHEETS IN FRONT OF HIM HIS VIEWS SHOULD FALL ON RECEPTIVE EARS THE INTELLECT DESCRIBED IN THE TITLE OF THIS LATEST NOVA PRESENTATION BELONGED TO PHYSICIST RICHARD FEYNMAN WHO WORKED TO DEVELOP THE FIRST ATOMIC BOMB AND WHOSE FORMULATIONS ON LIGHT AND MATTER WON THE NOBEL PRIZE HIS WAS AS THIS DOCUMENTARY SHOWS A RARE VITALITY THAT NEVER LOST ITS EARTHBOUND NEW YORK FLAVOR NOR ITS LUCIDITY IN A FEW QUICK VERBAL BRUSH STROKES HE COULD EVOKE BOTH THE PICTURE OF HIS EARLY LIFE AND THE QUALITY OF HIS FATHER'S MIND WHEN AS A SMALL BOY HE ASKED WHY A TOY WAGON MOVED IN A CERTAIN WAY HIS BUSINESSMAN FATHER ANSWERED THAT THIS WAS A MYSTERY BUT GAVE HIM THE SCIENTIFIC NAME FOR THE PHENOMENON HE KNEW THE SON SAYS THE DIFFERENCE BETWEEN KNOWING THE NAME OF SOMETHING AND KNOWING SOMETHING THE FAMILY'S CAPACITY FOR FINDING THE TELLING MOMENT ISN'T LIMITED TO ITS STAR HIS ASTROPHYSICIST SISTER IS HERE AS WELL TO TELL HOW HER BROTHER GOT PERMISSION TO WAKE HER WHEN THEY WERE CHILDREN IN ORDER TO SHOW HER WHAT HE DESCRIBED AS SOMETHING WONDERFUL THEY WALKED OUT IN THE MIDDLE OF THE NIGHT AS IT WAS IN THOSE DAYS POSSIBLE TO DO TO CENTRAL PARK WHERE RICHARD SHOWED HER THE AURORA BOREALIS IT WAS GOOD OF HIM SHE TELLS HER INTERVIEWER TO KNOW THAT I WOULD THINK IT WAS WONDERFUL A STERLING PORTRAIT TO THE END IN THIS FILM REMINISCENCE CBS REPORTS PROVIDES A GOOD MANY HORRIFIC SCENES OF VIETNAM AND MANY MORE THAT ARE MERELY REVOLTING SUCH AS FOOTAGE OF THE LOVEINS SITINS AND SIMILAR DRUGBECLOUDED SPECTACLES ASSOCIATED WITH THE '60S THE YEAR 1968 WAS ABOUT YOUTH HOST MIKE WALLACE REVERENTIALLY ANNOUNCES IN THIS WORK PACKED END TO END WITH FATUOUS PIETIES ABOUT THE GLORIOUS YOUTH REVOLUTION SEE THE GLORIOUS YOUTH TAKING OVER THE UNIVERSITIES SITTINGIN AT COLUMBIA SPITTING AT THE POLICE AND ASSERTING THAT A NEW ORDER OF JUSTICE AND SOCIAL MORALITY HAD BEEN BORN AND THAT THEY HAD BROUGHT IT ABOUT JOURNALIST CHARLES KAISER IS ON HAND TO EXPLAIN HOW PLEASANT IT HAD FELT FOR THE YOUNG TO ENRAGE THEIR PARENTS IT MIGHT BE WELL TO REMEMBER HOWEVER THAT IN AMERICA THE STUDENT RIOTERS ONLY BROUGHT THE UNIVERSITIES TO A HALT AND KILLED A FEW PEOPLE IN FRANCE THEY SHUT DOWN THE ENTIRE COUNTRY FOR ALL ITS FATUOUSNESS THIS SHOW IS ALSO PACKED END TO END WITH VIVID FILM HISTORY OF THE YEAR AND ESPECIALLY OF THE RIOTOUS DEMOCRATIC NATIONAL CONVENTION AND WORTH WATCHING FOR THAT CHERYL LADD STARS IN THIS FACTBASED STORY ABOUT A COUPLE BLACKMAILED BY A PAIR OF DRIFTERS WITH A BABY TO BARTER FAMILIAR THOUGH ITS MATTER MAY SOUND THIS IS IN FACT A GRIPPING AND EXCEEDINGLY WELLPERFORMED MADEFORTV MOVIE KATHLEEN WILHOITE TURNS IN A THOROUGHLY DEVASTATING PORTRAIT OF THE HOMELESS WOMAN HOOKED UP WITH A SCHEMER PLAYED CHILLINGLY BY TED LEVINE 9312160072 931210 CHINA A SPECIAL REPORT AT A GLANCE MAPPING A STRATEGY A SURVEY OF CHINA'S BUSINESS LANDSCAPE THESE STATISTICS REPRESENT THE LATEST FIGURES AVAILABLE FOR EACH CITY OR REGION AND THE NUMBERS THEMSELVES ARE FOR THE YEAR INDICATED THE PERCENTAGE FIGURES IN PARENTHESES SHOW THE CHANGE FROM THE PREVIOUS YEAR WHERE AVAILABLE BEIJING'S GROSS INDUSTRIAL OUTPUT RANKS SECOND BEHIND SHANGHAI'S AMONG MUNICIPALITIES IN CHINA IN THE FIRST FIVE MONTHS OF THIS YEAR 1514 NEW FOREIGNINVESTED PROJECTS VALUED AT 275 BILLION WERE APPROVED THE CITY HAS DESIGNATED A HIGHTECH ZONE NEAR BEIJING UNIVERSITY THAT IS ATTRACTING FOREIGN COMPUTER MAKERS FUJIAN RANKS SECOND AFTER GUANGDONG PROVINCE IN ATTRACTING FOREIGN CAPITAL THE PROVINCE HAS WAIVED LOCAL TAXES FOR CERTAIN FOREIGN EXPORTERS SUCH AS HIGHTECH FIRMS FUJIAN IS KNOWN FOR ITS FOODPROCESSING AND OTHER LIGHT INDUSTRIES GUANGDONG ADJACENT TO HONG KONG HAS ABSORBED THE LION'S SHARE OF FOREIGN INVESTMENT IN CHINA THE PROVINCE HAS BECOME SO ECONOMICALLY INDEPENDENT FROM BEIJING THAT CENTRALGOVERNMENT FUNDING FOR PROVINCIAL INVESTMENT HAS DROPPED FROM 80 IN 1979 TO ONLY 2 LAST YEAR THE PROVINCE'S RETAIL MARKET RANKS FIRST IN THE COUNTRY ITS CAPITAL CITY GUANGZHOU IS BOOMING HEBEI ENCIRCLES THE CITIES OF BEIJING AND TIANJIN ITS BROAD INDUSTRIAL SECTOR INCLUDES MACHINERY PHARMACEUTICALS ELECTRONICS AND CHEMICALS A MAJOR PORT QINGHUANGDAO HANDLES LARGE AMOUNTS OF BULK CARGO THE PROVINCE IS A LEADING PRODUCER OF STEEL AUTOMOBILES AND COTTON TEXTILES AND IS A MAJOR RESEARCH BASE FOR LASER TECHNOLOGY AND FIBER OPTICS THE CAPITAL WUHAN IS A TRANSPORT HUB FOR BOTH RIVER AND TRAIN TRAFFIC HONG KONG INVESTORS PLAN TO MAKE IT A SHIPMENT CENTER FOR EXPORTS PRODUCED IN CHINA'S INTERIOR JIANGSU'S INDUSTRIAL OUTPUT ACCOUNTS FOR 13 OF THE NATION'S TOTAL WHICH PLACES IT FIRST AMONG THE PROVINCES THE PROVINCE IS PARTICULARLY STRONG IN TEXTILES MACHINERY CHEMICALS FOOD AND OTHER LIGHT MANUFACTURING JILIN'S CONSIDERABLE NATURAL RESOURCES INCLUDE TIMBER ITS ANNUAL OUTPUT OF WHICH IS THE SECONDHIGHEST IN THE COUNTRY IT'S ALSO AN IMPORTANT GRAINPRODUCING CENTER THE PROVINCE IS TRYING TO ATTRACT EXPORTERS AND CAR COMPANIES CHANGCHUN AND HUNCHUN NOW HAVE SPECIAL INVESTMENT AREAS LIAONING PROVINCE'S HEAVYINDUSTRY OUTPUT RANKS SECOND IN THE COUNTRY CHINA'S LARGEST STEEL MILL THE ANSHAN IRON & STEEL WORKS IS LOCATED HERE THE PROVINCE ACCOUNTS FOR 40 OF THE NATION'S COAL PRODUCTION AND HAS CHINA'S THIRDLARGEST OIL FIELD THE LIAOHE OIL FIELD THE PORT CITY OF DALIAN IS THE CENTER OF JAPANESE MANUFACTURING INVESTMENT IN CHINA SHAANXI PROVINCE IS ONE OF CHINA'S MAJOR MILITARY PRODUCTION CENTERS AIRCRAFT AND ELECTRONICS INDUSTRIES HAVE A SIGNIFICANT PRESENCE HERE XIAN THE CAPTIAL NOW HAS A HIGHTECH DEVELOPMENT ZONE SHANDONG IS CHINA'S THIRDMOSTPOPULOUS PROVINCE IT HAS SOME OF THE BEST INFRASTRUCTURE IN CHINA INCLUDING A MODERN EXPRESSWAY NETWORK THAT BRANCHES OUT FROM THE PORT OF QINGDAO IN ORDER TO ATTRACT MORE FOREIGN INVESTMENT SHANDONG WANTS FOREIGN INVESTORS TO PARTICIPATE IN FINANCE INSURANCE COMMERCE AND TOURISM SHANGHAI IS CHINA'S LARGEST COMMERCIAL CITY AND ITS LARGEST PORT ACROSS THE RIVER FROM SHANGHAI'S FAMOUS BUND THE CITY IS DEVELOPING A HUGE ECONOMIC ZONE CALLED PUDONG BUT REALESTATE SPECULATION HAS DRIVEN SHANGHAI LAND PRICES TO NEARHONG KONG LEVELS SHANGHAI IS DESIGNATED TO BECOME CHINA'S FINANCIAL CENTER AND ITS NASCENT STOCK MARKET HAS BEEN ATTRACTING 60000 NEW PLAYERS A WEEK SICHUAN IS CHINA'S MOST POPULOUS PROVINCE ACCOUNTING FOR ALMOST ONETENTH OF THE NATION'S TOTAL SO FAR FOREIGN INVESTMENT IS SMALL BUT SUCH MAJOR CITIES AS CHENGDU AND CHONGQING ARE TRYING TO ATTRACT HIGHTECH MANUFACTURERS TO FORM PARTNERSHIPS WITH CHINA'S MILITARYOWNED ELECTRONICS FACTORIES TIANJIN IS CHINA'S THIRDMOSTPOPULOUS CITY AND FOURTHLARGEST RETAIL CENTER AFTER SHANGHAI BEIJING AND GUANGZHOU TIANJIN'S MAJOR EXPORTS ARE GARMENTS TEXTILES FOOTWEAR CARPETS HOUSEHOLD ELECTRICAL APPLIANCES AND MACHINERY THE TIANJIN ECONOMICTECHNOLOGICAL DEVELOPMENT ZONE WAS SET UP IN THE COASTAL TANGGU DISTRICT IN 1984 THE CITY ALSO IS DEVELOPING A HUGE ZONE FOR THE PETROCHEMICAL INDUSTRY YUNNAN IS CHINA'S DOOR TO INDOCHINA THE PROVINCE IS THE CENTER OF CHINA'S HUGE TOBACCO AND CIGARETTE INDUSTRY IT ALSO IS A POPULAR DESTINATION FOR TOURISTS FOREIGN INVESTMENT HAS BEEN SCARCE AND SOME OF THE MORE CONSPICUOUS WEALTH CAN BE ATTRIBUTED TO YUNNAN'S ROLE AS THE GATEWAY FOR HEROIN SMUGGLING FROM BURMA TO EUROPE AND THE US ZHEJIANG IS A MOUNTAINOUS PROVINCE ON THE EAST COAST THAT IS ONLY NOW GRABBING THE ATTENTION OF FOREIGN INVESTORS THE COASTAL CITY OF WENZHOU MAY BE THE MOST ENTREPRENEURIAL SPOT IN CHINA THE PORT OF NINGBO IS DRAWING MONEY FROM HONG KONG SHIPPING TYCOONS WHO SEE IT AS A TRANSSHIPMENT POINT FOR CARGO COMING DOWN THE YANGTZE RIVER ALL OF HAINAN ISLAND IS A SPECIAL ECONOMIC ZONE SO LIKE THE OTHER FOUR SEZS IT CAN OFFER LOWER TAXES AND LESSRESTRICTIVE TRADE POLICIES THAN OTHER PLACES IT ALSO HAS BECOME ONE OF THE MOST CORRUPT PLACES IN CHINA THE ISLAND HAS GOOD BEACHES AND IS ATTRACTING SOME OVERSEAS INVESTMENT IN RESORTS A CONSORTIUM OF JAPANESE AND HONG KONG INTERESTS IS CURRENTLY DEVELOPING A 12SQUAREMILE AREA AT THE YANGPU PORT TO CREATE A FREETRADE ZONE THE CITY OF SHANTOU IS IN GUANGDONG PROVINCE 220 MILES NORTHEAST OF HONG KONG THE SHANTOU SPECIAL ECONOMIC ZONE WAS SET UP IN 1981 ABOUT 80 OF THE FOREIGN INVESTMENT PROJECTS ARE LIGHT MANUFACTURING SUCH AS GARMENTS ELECTRONICS TOYS AND BUILDING MATERIALS HONG KONG IS BY FAR THE LEADING INVESTOR SHENZHEN HAS ALMOST BECOME AN EXTENSION OF HONG KONG WHICH IT BORDERS THE MOST DEVELOPED INDUSTRIES ARE ELECTRONICS TOYS FOOD PROCESSING TEXTILES AND GARMENTS BY THE END OF 1992 SHENZHEN HAD OVER THE YEARS APPROVED A TOTAL OF 72 BILLION IN FOREIGN INVESTMENT CONTRACTS OF THE 6116 PROJECTS APPROVED ABOUT TWOTHIRDS ARE WITH HONG KONG INVESTORS XIAMEN IS IN SOUTHERN FUJIAN PROVINCE AND WAS DESIGNATED A SPECIAL ECONOMIC ZONE IN 1984 THE CITY HAS FALLEN BEHIND OTHER SEZS BECAUSE IT HAS CONSISTENTLY HAD POOR LEADERSHIP XIAMEN OWES MUCH OF ITS RECENT ECONOMIC GROWTH TO A HUGE INFLUX OF INVESTMENT FROM TAIWAN WHERE PEOPLE SPEAK THE SAME DIALECT ZHUHAI BORDERS THE PORTUGUESE COLONY OF MACAO ITS MAJOR INDUSTRIES ARE ELECTRONICS TEXTILES GARMENTS FOODSTUFFS SUGAR AND BUILDING MATERIALS YOU MAY NOT WANT TO FOLLOW THE HERD AFTER ALL PLACES LIKE SHANGHAI BEIJING AND GUANGZHOU ARE ALREADY WELL TRAMPLED BY INVESTORS HERE'S THE WALL STREET JOURNAL'S LIST OF SIX ALTERNATIVE BEST BET REGIONS FOR FOREIGN INVESTMENT SHANGHAI IS FLOODED WITH FOREIGN INVESTORS CARRYING MORE CASH THAN COMMON SENSE RENTS AND WAGES ARE SOARING CONSIDER TWO NEARBY CITIES STILL CLOSE TO SHANGHAI'S MARKET AND PORT FOREIGN INVESTORS SHOULD GENERALLY STAY FAR FROM BEIJING'S MEDDLING BUREAUCRATS CONSIDER INSTEAD THE ATTRACTIVE SPOTS ALONG THE FREEWAY TO TIANJIN OVERLOOKED SHANDONG HAS QUIETLY BUILT THE BEST FREEWAY SYSTEM IN ROADPOOR CHINA AND UPGRADED ITS PORTS AND RAILWAYS IN SOME PLACES HERE THE COAL SMOKE IS SO THICK THAT SPY SATELLITES CAN'T SEE THE GROUND BUT THERE'S GOOD ACCESS TO RAW MATERIALS AND THE PORT OF YINGKOU IS PLANNING AN INDUSTRIAL ZONE FOR FOREIGNERS CHINA IS TRYING TO LURE MORE INVESTMENT INLAND WHERE WAGES AND OTHER COSTS ARE LOWER LOOK FOR TAX BREAKS AND NEW FLEXIBILITY IN CITIES ALONG THE YANGTZE RIVER GUANGZHOU AND SHENZHEN MAY BE CLOGGED WITH TRAFFIC BUT THERE ARE REASONABLE PLACES BETWEEN THE CITIES AND ON THE OTHER SIDE OF THE DELTA THAT PROVIDE ACCESS TO THE GUANGZHOU MARKET AND HONG KONG'S PORT 9312160070 931216 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF NOTES DUE DEC 23 2003 PRICED INITIALLY AT PAR TO YIELD 6375 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 58 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY PAINEWEBBER INC FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF NOTES DUE DEC 23 1998 PRICED INITIALLY AT PAR TO YIELD 539 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 21 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO GUANGDONG ENTERPRISES HOLDINGS LTD 250 MILLION OF SENIOR NOTES DUE DEC 15 2003 PRICED AS 875S AT 99676 TO YIELD 88 THE NOTES WERE SOLD IN THE 144A PRIVATEPLACEMENT MARKET THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 300 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEB BY STANDARD & POOR'S CORP THE ISSUE WAS SOLD THROUGH MERRILL LYNCH & CO MERRILL LYNCH & CO 200 MILLION OF NOTES DUE DEC 15 1996 PRICED AT PAR TO YIELD 5 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO WATERHOUSE INVESTOR SERVICES INC 50 MILLION PRINCIPAL AMOUNT OF 6 CONVERTIBLE SUBORDINATED NOTES DUE DEC 15 2003 PRICED AT PAR ACCORDING TO THE COMPANY THE NOTES ARE CONVERTIBLE INTO COMMON SHARES AT A CONVERSION PRICE OF 2925 A SHARE SUBJECT TO ADJUSTMENT BEAR STEARNS & CO IS THE UNDERWRITER CONSO PRODUCTS CO INITIAL OFFERING OF 14 MILLION COMMON SHARES PRICED AT 1125 EACH ACCORDING TO THE COMPANY INTERSTATE/JOHNSON LANE CORP AND SCOTT & STRINGFELLOW INC ARE THE MANAGING UNDERWRITERS HOME HOLDINGS INC INITIAL OFFERING OF 75 MILLION COMMON SHARES PRICED AT 17 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC J&L SPECIALTY STEEL INC INITIAL PUBLIC OFFERING OF 156 MILLION COMMON SHARES PRICED AT 14 EACH ACCORDING TO THE COMPANY THE OFFERING IS BEING COMANAGED IN THE US BY MERRILL LYNCH & CO CREDIT LYONNAIS SECURITIES USA INC AND JP MORGAN SECURITIES INC CREDIT LYONNAIS SECURITIES MERRILL LYNCH INTERNATIONAL LTD AND UBS LTD ARE INTERNATIONAL COMANAGERS MOLEX INC 68 MILLION CLASS A COMMON SHARES PRICED AT 3050 EACH THROUGH UNDERWRITERS LED BY WILLIAM BLAIR & CO ALL SHARES ARE BEING SOLD BY SHAREHOLDER KREHBIEL LP TIG HOLDINGS INC 173 MILLION COMMON SHARES PRICED AT 21 EACH ACCORDING TO TRANSAMERICA CORP HOLDER OF THE SHARES MORGAN STANLEY & CO DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND LEHMAN BROTHERS INC ARE LEAD UNDERWRITERS WATER POINT SYSTEMS INC INITIAL PUBLIC OFFERING OF 22 MILLION COMMON SHARES PRICED AT 5 EACH ACCORDING TO THE COMPANY WHALE SECURITIES CO WAS THE UNDERWRITER CALIFORNIA STATE PUBLIC WORKS BOARD 1938 MILLION OF LEASEREVENUE BONDS PRICED BY A LAZARD FRERES & CO GROUP YIELDS RANGE FROM 375 IN 1996 TO 568 IN 2019 MOODY'S RATED THE BONDS A CONDITIONAL SINGLEA1 AND S&P ASSIGNED A PROVISIONAL SINGLEA RATING DADE COUNTY FLA 420 MILLION OF SERIES 1993 WATER AND SEWERSYSTEM REVENUE REFUNDING BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 32 IN 1995 TO 535 IN 2013 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P DETROIT 1668 MILLION OF SERIES 1993 GENERALOBLIGATION BONDS PRICED BY UNDERWRITERS LED BY MERRILL LYNCH & CO THE CITY'S 140 MILLION OF UNLIMITEDTAX REFUNDING BONDS ARE PRICED TO YIELD FROM 34 IN 1995 TO 534 IN 2009 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P DETROIT'S 268 MILLION OF GENERALOBLIGATION BONDS ARE 64S PRICED AT PAR TO YIELD 64 IN 2014 THE BONDS ARE UNINSURED AND HAVE A BA1 RATING FROM MOODY'S AND A TRIPLEB RATING FROM S&P DISTRICT OF COLUMBIA 4231 MILLION OF GENERALOBLIGATION REFUNDING BONDS PRICED BY A WR LAZARD LAIDLAW & MEAD INC GROUP INCLUDED ARE 1407 MILLION OF SERIES 1994A1 BONDS PRICED TO YIELD FROM 345 IN 1995 TO 54 IN 2011 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP THE 64 MILLION OF SERIES 1994A2 BONDS WHICH ARE INSURED BY AMBAC INDEMNITY CORP ARE PRICED TO YIELD FROM 345 IN 1995 TO 505 IN 2005 YIELDS FOR THE REMAINING 2184 MILLION OF BONDS RANGE FROM 375 IN 1995 TO 565 IN 2007 THESE BONDS ARE UNINSURED AND HAVE A BAA RATING FROM MOODY'S AND A SINGLEAMINUS RATING FROM S&P THE INSURED BONDS CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 1272 MILLION OF SERIES 1993B HOSPITAL REVENUE AND REFUNDING BONDS PRICED BY GOLDMAN SACHS & CO YIELDS RANGE FROM 49 IN 2001 TO 59 IN 2023 BONDS DUE IN 200408 ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE BALANCE OF THE SECURITIES WHICH ARE UNINSURED HAVE A SINGLEA RATING FROM MOODY'S AND A SINGLEAMINUS RATING FROM S&P NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY 7559 MILLION OF 1993 SERIES F MENTALHEALTH SERVICES FACILITIESIMPROVEMENT REFUNDING BONDS HAVE BEEN PRICED BY A MORGAN STANLEY & CO GROUP YIELDS RANGE FROM 475 IN 1999 TO 575 IN 2019 UNINSURED BONDS HAVE A BAA1 RATING FROM MOODY'S AND A TRIPLEBPLUS RATING FROM S&P BONDS DUE IN 2000 200406 AND 2021 ARE INSURED BY FINANCIAL SECURITY ASSURANCE INC AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P WISCONSIN HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY 1459 MILLION OF 1993 SERIES C HOUSING REVENUE BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 3 IN 1994 TO 588 IN 2019 MOODY'S RATED THE BONDS SINGLEA1 AND S&P ASSIGNED A SINGLEA RATING FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES GOLD 1660 IS BACKED BY THE AGENCY'S GOLD 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 176 MONTHS COMMERZBANK OVERSEAS FINANCE NV GERMAN PARENT 10 BILLION YEN OF FLOATINGRATE EURONOTES DUE APRIL 28 1998 AT ISSUE PRICE 1035 VIA LEAD UNDERWRITER SANWA INTERNATIONAL PLC INTEREST PAID QUARTERLY AT THE THREEMONTH YEN LONDON INTERBANK OFFERED RATE PLUS 71 BASIS POINTS GUARANTOR COMMERZBANK AG FEES UNDISCLOSED CREDIT COMMERCIAL DE FRANCE FRANCE 35 BILLION FRENCH FRANCS OF FLOATINGRATE EURONOTES DUE JANUARY 1996 AT ISSUE AND FIXED REOFFER PRICE OF 9991 VIA CREDIT COMMERCIAL DE FRANCE AND MERRILL LYNCH CAPITAL MARKETS FRANCE INTEREST PAID QUARTERLY FLAT AT THE THREEMONTH PARIS INTERBANK OFFERED RATE FOR FRANCS FEES UNDECIDED WORLD BANK SUPRANATIONAL 250 MILLION SWISS FRANCS OF 4 PRIVATELY PLACED NOTES DUE JAN 28 2002 PRICED AT 102375 VIA BANQUE PARIBAS SUISSE FEES 175 9312160068 931216 TECHNOLOGY & ENVIRONMENT CORNING PLANS TO BUY NORTHERN TELECOM'S OPTICAL FIBER UNIT CORNING NY CORNING INC AND ITS SIECOR JOINT VENTURE AGREED TO ACQUIRE THE OPTICAL FIBER AND CABLE BUSINESSES OF THEIR BIGGEST RIVAL IN CANADA NORTHERN TELECOM LTD FOR 130 MILLION CORNING'S SHARE OF THE PURCHASE PRICE WILL BE 1085 MILLION WHILE THE REST WILL BE PAID BY ITS JOINT VENTURE PARTNER THE SIEMENS CORP UNIT OF SIEMENS AG SEPARATELY CORNING SAID IT SIGNED A LETTER OF INTENT TO BREAK ITS CONSUMER HOUSEWARES JOINT VENTURE RELATIONSHIP WITH VITRO SA OF MEXICO ALTHOUGH IT WILL CONTINUE TO USE VITRO'S DISTRIBUTION CHANNELS IN THAT COUNTRY UNDER TERMS CORNING WILL PAY 131 MILLION TO VITRO WHICH IS WHAT VITRO PAID CORNING IN 1992 CORNING SAID IT WILL FINANCE BOTH TRANSACTIONS THROUGH A COMMON STOCK OFFERING OF 67 MILLION SHARES IN THE NEAR FUTURE THE COMPANY CURRENTLY HAS 196 MILLION SHARES OUTSTANDING THE NORTHERN TELECOM DEAL WILL MAKE CORNING THE DOMINANT SOURCE OF OPTICAL FIBER TO THE CANADIAN MARKET AND GIVES THE US COMPANY ADDED CAPACITY FOR ITS CABLE BUSINESS EVENTUALLY CORNING PLANS TO MOVE ALL OPTICAL FIBER PRODUCTION TO ITS WILMINGTON NC FIBER PLANT THE VITRO DEAL WILL HELP CORNING GET OUT OF WHAT HAS BEEN AN UNPROFITABLE RELATIONSHIP SINCE 1990 CORNING HAS HAD TWO JOINT VENTURES WITH VITRO VITRO CORNING WHICH IS BASED IN MEXICO BUT ALSO SELLS CORNING GOODS AND CORNING VITRO WHICH IS BASED IN THE US BUT ALSO SELLS VITRO GLASSWARE VITRO CORNING WHICH IS NOW 51OWNED BY VITRO AND ENTIRELY MANAGED BY VITRO HAS BEEN UNPROFITABLE FOR CORNING CORNING VITRO HOWEVER HAS BEEN PROFITABLE BY SEVERING THE JOINT VENTURE RELATIONSHIP CORNING WILL NOT HAVE TO TAKE ANY PART IN VITRO CORNING'S LOSSES BUT WILL BE ABLE TO KEEP ALL THE PROFITS FROM CORNING VITRO 9312160067 931216 WHO'S NEWS STONE & WEBSTER INC STONE & WEBSTER INC NEW YORK THE COMPANY'S BOARD APPROVED A PLAN TO ELECT ITS PRESIDENT BRUCE C COLES TO THE ADDITIONAL POSITION OF CHIEF EXECUTIVE AFTER A SHAREHOLDER'S MEETING IN MAY MR COLES 49 YEARS OLD WILL SUCCEED CHAIRMAN WILLIAM F ALLEN JR 74 IN THE POSITION OF CHIEF EXECUTIVE MR ALLEN WHO HAS BEEN CHAIRMAN SINCE 1988 WILL CONTINUE TO HOLD THE TITLE UNTIL MAY 1995 STONE & WEBSTER AN ENGINEERING AND CONSTRUCTION COMPANY HAD REVENUE OF 283 MILLION IN 1992 9312160066 931216 WHO'S NEWS DIGITAL EQUIPMENT CORP DIGITAL EQUIPMENT CORP MAYNARD MASS ROBERT E MCNULTY WAS NAMED CHIEF INFORMATION OFFICER AT THE COMPUTER MAKER EFFECTIVE IMMEDIATELY MR MCNULTY CONTINUES TO SERVE AS VICE PRESIDENT OF DIGITAL'S OPERATIONS MANAGEMENT SERVICES BUSINESS WHICH HANDLES COMPUTER OPERATIONS FOR OTHER COMPANIES IN HIS ADDITIONAL POST MR MCNULTY IS RESPONSIBLE FOR MANAGING DIGITAL'S INTERNAL COMPUTER AND TELECOMMUNICATIONS SYSTEMS MR MCNULTY WHO JOINED DIGITAL IN JUNE HAS WORKED FOR EQUITABLE LIFE ASSURANCE SOCIETY AMERICAN TELEPHONE & TELEGRAPH CO AND INTERNATIONAL BUSINESS MACHINES CORP SEPARATELY DIGITAL SAID IT HIRED CARL E GUSTIN JR AS VICE PRESIDENT PRODUCT AND MARKET STRATEGY FOR DIGITAL'S PERSONAL COMPUTER BUSINESS UNIT PREVIOUSLY MR GUSTIN HELD FIELDSALES MARKETING AND SENIOR MANAGEMENT POSITIONS AT APPLE COMPUTER INC INCLUDING SERVING AS EXECUTIVE AIDE TO APPLE'S FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOHN SCULLEY 9312160065 931216 WHO'S NEWS AH BELO CORP AH BELO CORP DALLAS ARTURO MADRID 54 YEARS OLD WAS NAMED TO THE BOARD OF THIS NEWSPAPER AND BROADCASTING CONCERN EFFECTIVE JAN 1 MR MADRID IS A PROFESSOR OF HUMANITIES AT TRINITY UNIVERSITY IN SAN ANTONIO TEXAS AND WILL FILL A VACANCY CREATED BY THE RETIREMENT OF JAMES P SHEEHAN 51 PRESIDENT AND CHIEF OPERATING OFFICER 9312160064 931216 WHO'S NEWS CITIZENS UTILITIES CO CITIZENS UTILITIES CO STAMFORD CONN WILLIAM D CREAN 50 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT AND ASSISTANT TO THE PRESIDENT FOR TARGET EXCELLENCE A QUALITY IMPROVEMENT PROGRAM FOR EMPLOYEES OF THIS DIVERSIFIED UTILITY CONCERN 9312160063 931216 BUSINESS BRIEF PROVIDENT BANKSHARES CORP COMPANY AGREES TO PURCHASE STERLING BANK IN STOCK DEAL PROVIDENT BANKSHARES CORP SAID IT EXECUTED A LETTER OF INTENT TO BUY STERLING BANK & TRUST CO A STATECHARTERED COMMERCIAL BANK WITH ASSETS OF 70 MILLION THE PURCHASE PRICE WILL BE 1 1/2 TIMES STERLING'S BOOK VALUE AS OF SEPT 30 1993 AND WILL BE PAYABLE IN 586900 SHARES OF PROVIDENT STOCK THE TRANSACTION HAS AN INDICATED VALUE OF ABOUT 108 MILLION AND IS EXPECTED TO BE COMPLETED WITHIN SIX MONTHS BALTIMOREBASED STERLING WITH THREE LOCAL OFFICES SPECIALIZES IN PRIVATE BANKING SERVICES PROVIDENT BANKSHARES ALSO BASED IN BALTIMORE IS THE HOLDING COMPANY OF PROVIDENT BANK OF MARYLAND A FULLSERVICE COMMERCIAL BANK WITH 41 BRANCH OFFICES AND ASSETS OF 17 BILLION 9312160062 931216 WORLD MARKETS SHARES GAIN IN TOKYO SET NEW HIGH IN LONDON ON A ROSIER ECONOMY BUT TUMBLE IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS GAINED 1 WEDNESDAY ON ARBITRAGE BUYING IN THIN DEALINGS LONDON PRICES ADVANCED TO A RECORD AS BRITAIN'S ECONOMIC PICTURE TOOK ON A BRIGHTER GLOW BUT FRANKFURT SHARES DROPPED SHARPLY ON PROFITTAKING SPURRED BY RUSSIAN REFORMERS' SETBACK AND BY A BIG SECURITIES FIRM'S CHANGE IN ITS RECOMMENDED WEIGHTING OF GERMAN EQUITIES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10936 DOWN 029 REFLECTING LOWER MARKETS IN ALL REGIONS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 23269 UP 1047 OR 47 WITH CONSOLIDATED PLANTATIONS OF MALAYSIA POSTING A 15 GAIN IN ITS LOCAL CURRENCY OTHER RECREATIONAL PRODUCTS STOCKS TRAILED AT 11458 DOWN 513 OR 43 WITH EASTMAN KODAK OF THE US SLIDING 12 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SLIPPED 1860 POINTS TUESDAY ADVANCED 18042 TO 1748915 IN TOKYO THURSDAY THE NIKKEI INDEX ROSE 31593 POINTS TO CLOSE THE MORNING SESSION AT 1780508 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 210 MILLION SHARES DOWN FROM 2213 MILLION SHARES A DAY EARLIER GAINERS NARROWLY TOPPED LOSERS 522464 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 1113 POINTS TUESDAY EDGED UP 134 TO 145235 THE NIKKEI'S GAIN STEMMED FROM ARBITRAGE BUYING PROMPTED BY A LATE BOUT OF PREHOLIDAY SHORTCOVERING OF FUTURES POSITIONS COVERING A SHORT SALE INVOLVES BUYING SHARES TO REPLACE BORROWED STOCK THAT WAS SOLD IN HOPES OF PROFITING FROM A PRICE DECLINE BEFORE REPLACEMENT WHEN FUTURES PRICES JUMPED JUST BEFORE THE CLOSE FOREIGN INVESTORS COVERED THEIR SHORT POSITIONS THE US DOLLAR'S REBOUND AGAINST THE JAPANESE YEN HELPED ELECTRICAL EXPORTERS GAIN IN HEAVY VOLUME FOR THE SECTOR THE BROADER TOPIX WAS IN NEGATIVE TERRITORY MOST OF THE DAY UNTIL THE LATE SHORTCOVERING SPREE THE MARKET LARGELY IGNORED COMMENTS BY JAPANESE GOVERNMENT OFFICIALS SUGGESTING THAT YET ANOTHER SUPPLEMENTARY BUDGET WOULD BE PREPARED SOON TO HELP THE STRUGGLING ECONOMY STOCKS BEGAN THE SESSION WEAKLY AMID GLOBAL CONCERNS ABOUT STATEMENTS BY VLADIMIR ZHIRINOVSKY ONE OF THE MOST PROMINENT POWERBROKERS TO EMERGE VICTORIOUS IN RUSSIA'S PARLIAMENTARY ELECTIONS LAST WEEKEND MR ZHIRINOVSKY SAID IN A GERMAN NEWSPAPER THAT HE FAVORED A NEW VERSION OF THE HITLERSTALIN PACT UNDER WHICH THE FORMER SOVIETS AND NAZIS DIVIDED POLAND UKRAINE AND THE BALTIC STATES AT THE OUTSET OF WORLD WAR II BUT SHARE PRICES QUICKLY RECOVERED IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROMPED UP 304 POINTS TO 32788 THE FT 30STOCK INDEX CLIMBED 215 POINTS TO 24688 VOLUME WAS 7526 MILLION SHARES UP FROM 7055 MILLION SHARES A DAY EARLIER THREE MAIN FACTORS WERE AT PLAY FIRST DATA SHOWED CONSUMER SPENDING AT TWICE THE PACE EXPECTED AND INFLATION SLOWING MORE THAN ANTICIPATED WITH THE LATTER RAISING HOPES FOR A BRITISH LENDINGRATE REDUCTION TO EASE THE PAIN OF HIGHER TAXES NEXT YEAR CONCLUSION OF THE GLOBAL LIBERALIZATION PACT UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE HELPED BOOST SOME SECTORS THAT ARE EXPECTED TO BENEFIT FROM FREER TRADE AND A STRONG TECHNICAL FORCE DROVE THE MARKET A RELUCTANCE TO SELL THE MARCH STOCKINDEX FUTURES CONTRACT RESULTED IN AN IMBALANCE BETWEEN STOCK AND FUTURES PRICES FORCING THE STOCK MARKET HIGHER IN AN ATTEMPT TO REDRESS THE SITUATION COMPOUNDED BY THE DECEMBER FUTURES CONTRACT'S EXPIRATION FRIDAY WINNING SECTORS INCLUDED INDUSTRIALS PHARMACEUTICALS ELECTRICITY CONCERNS OIL AND BANKS IN FRANKFURT THE DAX 30STOCK INDEX TUMBLED 3927 POINTS OR 18 TO 211070 JUST FRACTIONALLY ABOVE THE INTRADAY LOW THE MARKET'S CONSOLIDATION HAD BEGUN TUESDAY AFTER THE POOR SHOWING OF RUSSIA'S REFORMERS IN THAT COUNTRY'S FIRST ELECTION AND PROVIDED A HANDY REASON FOR FRANKFURT INVESTORS TO CONTINUE SNAGGING PROFITS THE SELLOFF ALSO WAS PROPELLED BY MORGAN STANLEY'S REDUCTION OF ITS RECOMMENDED WEIGHTING OF GERMAN EQUITIES IN PORTFOLIOS TO 122 FROM 147 THE FIRM HAD RECOMMENDED AN INCREASE JUST BEFORE THE FRANKFURT BOURSE'S RALLY BEGAN LAST JULY IN PARIS STOCKS ROSE AFTER A ROLLERCOASTER SESSION PRICES OPENED WITH A 11 JUMP RECOVERING FROM TUESDAY'S PANIC SELLING IN REACTION TO SABERRATTLING COMMENTS FROM RUSSIA BUT DROPPED INTO NEGATIVE TERRITORY ON REPORTS PORTUGAL THREATENED A GATT VETO OVER TEXTILE ISSUES THEN A PORTUGUESE COMPROMISE PROMPTED A PARIS REBOUND IN MILAN PRICES ROSE ON THE LAST DAY OF THE DECEMBER TRADING ACCOUNT VOLUME WAS HIGH AS INVESTORS PREPARED TO CLOSE 1993 FINANCIAL RECORDS AND TURN THEIR ATTENTION TO THE NEW YEAR'S ACCOUNT IN MADRID SHARE PRICES CLOSED NARROWLY LOWER BUT RECOVERED FROM LOWS ON LATE FUTURESRELATED BUYING IN STOCKHOLM EQUITIES GAINED AS STRENGTH IN SEVERAL SECTORS OFFSET LOSSES IN THE TELECOMMUNICATIONS ARENA IN ZURICH STOCKS FELL ON PROFITTAKING AFTER FEELING PRESSURE FROM THE FRANKFURT MARKET'S DECLINES IN SYDNEY SHARE PRICES FELL INFLUENCED BY WEAKER BASEMETAL AND GOLD PRICES AND DECLINES IN SOME OVERSEAS MARKETS THE GATT AGREEMENT HAD ALREADY BEEN FACTORED INTO AUSTRALIAN EQUITIES WHICH ALSO WERE PRESSURED BY THE STOCKINDEX FUTURES CONTRACT IN HONG KONG FOLLOWING THE PREVIOUS SESSION'S 22 SLUMP PRICES FELL AGAIN ON PROFITTAKING INITIAL SHARP DECLINES WERE RECOUPED BY BARGAIN HUNTING BUT THE GAINS WERE THEN ERASED AND IN MANILA A HOT STREAK ENDED WHEN SHARES FELL HURT BY THE CORRECTION OF THE HONG KONG MARKET BUT IN SINGAPORE STOCKS GAINED SENDING THE BENCHMARK INDEX UP TO ITS FIFTH CONSECUTIVE RECORD HIGH SCORED ON A LATE WAVE OF OVERSEAS BUYING FOLLOWING PURCHASES OF STOCKS THAT HAVE BEEN LAGGARDS IN TAIPEI THE MAIN BAROMETER RALLIED 12 TO A 1993 HIGH ON RECORD TURNOVER OF 33 BILLION SHARES AND THE HIGHEST VALUE OF VOLUME SINCE JUNE 1 1990 THE GAIN WAS THE FOURTH IN A ROW TRIGGERED BY A HUGE INFLUX OF FOREIGN CAPITAL AND IN SEOUL THE MARKET SHOT UP 1 LED BY LARGECAPITALIZATION ISSUES ESPECIALLY STEELMAKERS THOUGH DECLINING ISSUES SLIGHTLY OUTNUMBERED ADVANCING ISSUES MOST SMALLASSET STOCKS FELL ON NEWS THAT SOUTH KOREAN LAWMAKERS DELAYED IMPLEMENTATION OF A LAW ABOLISHING THE 10 LIMIT ON A SINGLE LARGE SHAREHOLDER IN EACH COMPANY FOR THE NEXT THREE YEARS THOUGH THIS BOOSTED SOME FINANCIALLY HEALTHY COMPANIES THAT COULD BECOME TAKEOVER TARGETS 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 9312160061 931216 WORLD TRADE TALKS TRADE PACT IS SET BY 117 NATIONS SLASHING TARIFFS SUBSIDIES GLOBALLY US BUSINESSES LIKE TRADE PACT AS WHOLE BUT NOT SOME PARTS A WALL STREET JOURNAL NEWS ROUNDUP THE COMPLETION OF THE MARATHON TRADE ROUND AFTER REPEATED THREATS OF A COLLAPSE PRODUCED SIGHS OF RELIEF THROUGHOUT THE US BUSINESS COMMUNITY BUT ONLY A FEW BURSTS OF APPLAUSE BUSINESSES SELLING EVERYTHING FROM SECURITIES TO SEMICONDUCTORS SHARED ONE CONVICTION ON THE MARATHON TRADE TALKS NO ONE WANTED THEM TO FAIL THAT WOULD HAVE DEALT A PSYCHOLOGICAL BLOW TO THE GLOBAL ECONOMY JUST AS SOME OF ITS BIGGEST PLAYERS ARE REELING FROM RECESSION AND IT COULD HAVE LED TO PETTY TRADE QUARRELS THAT MIGHT HAVE CRAMPED BUSINESS EXPANSION BUT THE BROAD TRADE PACT NEGOTIATED OVER SEVEN YEARS UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE PROBABLY WON'T CREATE A GUSHER OF NEW ECONOMIC ACTIVITY AS YESTERDAY'S DEADLINE APPROACHED NEGOTIATORS TOSSED OUT SOME SEGMENTS OF THE DEAL AND WATERED OTHERS DOWN AND SOME OF THE MORE SIGNIFICANT CHANGES LIKE AN ELIMINATION OF TARIFFS ON CONSTRUCTION EQUIPMENT AND ENGINES WILL BE PHASED IN OVER THE DECADE DESPITE ITS EARLY BILLING THE GATT ROUND ENDED UP A DEAL TO BRING DOWN TARIFFS ON TANGIBLE ITEMS SUCH AS TOYS TRACTORS AND WHISKEY HOLLYWOOD AND WALL STREET GOT LITTLE BESIDES AN ECONOMY THAT WON'T AFTER ALL BE CLOUDED BY FEARS OF GLOBAL PROTECTIONISM OTHER BUSINESS EXECUTIVES WILL SEE MODEST IMPROVEMENTS FOLLOWING ARE THE EARLY REACTIONS OF INDUSTRIES TO THE ACCORD THIS INDUSTRY HAS STRUGGLED WITH A PROTECTIONIST THICKET OF TARIFFS AND QUOTAS DESIGNED TO PROTECT US APPAREL AND TEXTILE PRODUCERS FROM LOWCOST IMPORTS FROM DEVELOPING COUNTRIES THE PACT WILL CHOP MOST US TARIFFS BY 25 AND WOULD PHASE OUT THE CURRENT QUOTAS OVER 10 YEARS IT'S TREMENDOUS SAID JOHN SHEA CHIEF EXECUTIVE OF SPIEGEL INC A DOWNERS GROVE ILL CATALOG COMPANY EVERYTHING WORKED OUT WELL THE COMPANY SAYS THE CURRENT QUOTA FOR PURCHASES FROM BANGLADESH THAILAND INDONESIA AND MALAYSIA IS NEARLY USED UP THAT WILL FORCE IT TO TURN TO OTHER PROBABLY MORE EXPENSIVE SUPPLIERS THE QUOTA ALREADY RAN OUT ON LONGSLEEVE PLAID AND STRIPED SHIRTS FROM INDIA SO SPIEGEL HAD TO SEARCH ELSEWHERE SIMILARLY ANN GUST VICE PRESIDENT AND GENERAL COUNSEL AT GAP INC SAYS THE NEW TEXTILE TERMS WILL HELP HER COMPANY BUT THAT THE MOST SIGNIFICANT BENEFIT WON'T KICK IN FULLY UNTIL LATER IN THE DECADE MOSTLY RETAILERS ARE LOOKING FORWARD TO SIMPLIFYING THEIR PURCHASING PATTERNS AL LOHN A SPIEGEL VICE PRESIDENT PREDICTED IT WILL SAVE ME A LOT OF HEADACHES THE QUOTAS ARE PRIMATE TRIBALISM AS FAR AS I AM CONCERNED TARIFFS ON TOYS WILL BE CHOPPED SUBSTANTIALLY BARBIE IS THE BIG WINNER HERE SAID THOMAS ST MAXENS AN OUTSIDE TRADE CONSULTANT TO MATTEL INC CURRENTLY THE US HAS A 12 DUTY ON DOLL TARIFFS MOST OTHER TOY TARIFFS ARE 68 THOSE DUTIES WILL BE PHASED OUT OVER FIVE TO 10 YEARS IMPORTANTLY THE EUROPEAN COMMUNITY CANADA JAPAN AND SOUTH KOREA JOINED THE LIST OF COUNTRIES WILLING TO REDUCE TOY TARIFFS TO ZERO CATERPILLAR INC AND DEERE & CO WILL BE CLEAR WINNERS FROM THE PACT WHICH ELIMINATES TARIFFS ON CONSTRUCTION EQUIPMENT AND ENGINES CATERPILLAR ESTIMATES THAT THE DEAL WOULD ADD 125 MILLION TO ITS ANNUAL SALES SUPPORTING ABOUT 800 CATERPILLAR JOBS IN THE US AND 1600 JOBS AT CATERPILLAR'S US SUPPLIERS IN 1992 CATERPILLAR'S EXPORTS FROM THE US ACCOUNTED FOR 333 BILLION OF ITS 1019 BILLION IN TOTAL SALES ALTHOUGH IT EXPECTS TO FEEL SOME BENEFITS FROM THE ACCORD SOONER THE PEORIA ILL COMPANY SAYS TARIFFS WOULDN'T BE FULLY ELIMINATED ON ITS PRODUCTS UNTIL 2000 AND IT'S STILL WAITING FOR FINAL DETAILS TO SEE WHICH COUNTRIES WERE ABLE TO NEGOTIATE SPECIAL BREAKS BUT CATERPILLAR IS CLEARLY PLEASED WITH THE AGREEMENT ESPECIALLY SINCE THE COMPANY CLAIMS CREDIT FOR SUGGESTING THE ZERO TARIFF IDEA IN 1988 TO THEN US TRADE REPRESENTATIVE CLAYTON YEUTTER WHO IS NOW A CATERPILLAR BOARD MEMBER IN THE EC CURRENT TARIFFS ON CATERPILLAR PRODUCTS RANGE FROM 4 TO 11 CATERPILLAR SAYS US TARIFFS ON EUROPEAN CONSTRUCTION EQUIPMENT AVERAGE 25 HOLLYWOOD EXECUTIVES SPENT THE DAY LICKING THEIR WOUNDS AFTER A THUMPING DEFEAT IN GENEVA WHERE NOW WHAT NOW I THINK THAT IS A PROCESS LEAST WELL ACCOMPLISHED THE MORNING AFTER SAID SIDNEY J SHEINBERG PRESIDENT AND CHIEF OPERATING OFFICER AT MCA INC A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO WE'VE FOUND OURSELVES IN A PLACE WHERE WE DIDN'T THINK WE'D BE BUT NOW WE NEED TO TAKE SOME TIME AND THINK THIS THROUGH TO FIND OUT WHERE TO GO FROM HERE HOLLYWOOD HAD HOPED TO USE THE GATT TALKS TO BREAK EUROPEAN QUOTAS THAT LIMIT THE AMOUNT OF USPRODUCED MOVIES AND SHOWS BROADCAST ON EUROPEAN TV MOTION PICTURE ASSOCIATION OF AMERICA PRESIDENT JACK VALENTI BLAMES EUROPEAN NEGOTIATORS FOR NOT TAKING US OFFERS SERIOUSLY WE WERE ABSOLUTELY DUMBFOUNDED WHEN WE HEARD ABOUT THEIR OFFER AT 3 AM THEY CAME BACK WITH A HOLLOW AGREEMENT THE DISAPPOINTMENT NOTWITHSTANDING US STUDIOS ALREADY HAVE CAPTURED MORE THAN TWOTHIRDS OF THE MOVIE MARKET IN EUROPE AND SOME PRODUCERS HAVE WORKED AROUND THE RULES STILL HOLLYWOOD MAY FIGHT EUROPEAN BROADCAST QUOTAS THROUGH BILATERAL TRADE TOOLS MR SHEINBERG SAID IT MIGHT BE APPROPRIATE FOR US TO SOLICIT FURTHER COUNSEL FROM THE ADMINISTRATION AND POSSIBLY FROM THE CONGRESS THE SEMICONDUCTOR INDUSTRY TREMBLED AT EARLY REPORTS THAT THE FINAL GATT DEAL WOULD WEAKEN INTELLECTUAL PROPERTY AND ANTIDUMPING PROVISIONS HIGH EUROPEAN TARIFFS ON CHIPS WERE ANOTHER CONCERN THIS IS AN INDUSTRY BUILT ON INTELLECTUAL PROPERTY SAYS A SPOKESMAN FOR GIANT CHIP MAKER INTEL CORP IN THE END CHIP MAKERS CHEERED A LATE VICTORY ON THE FIRST TWO ISSUES BUT EXPRESSED MILD DISAPPOINTMENT THAT EUROPEAN BARRIERS WOULD BE DRIVEN DOWN BUT NOT ERASED I DON'T THINK THIS GATT ROUND WILL RESULT IN ANY MIRACULOUS INCREASE IN BUSINESS IN EUROPE SAYS BEN ANIXTER AN ADVANCED MICRO DEVICES INC'S VICE PRESIDENT IT WILL MAKE IT MARGINALLY EASIER FIVE YEARS FROM NOW THE TARIFFS ARE STILL GOING TO LOOK PROTECTIONIST IN THE EARLY 1980S ADVANCED MICRO WAS DRIVEN OUT OF THE DRAM OR DYNAMIC RANDOM ACCESS MEMORY BUSINESS BY JAPANESE CHIP DUMPING BESIDES BEING UNABLE TO COMPETE IN THE MARKET FOR THE MOST WIDELY USED TYPE OF MEMORY CHIPS THE COMPANY ALSO CAME CLOSE TO THROWING IN THE TOWEL ON ANOTHER MAINSTAY CHIP EPROM OR ERASABLE PROGRAMMABLE READONLY MEMORY TODAY THE COMPANY'S FASTEST GROWTH AND 25 OF ITS SALES COMES FROM SOCALLED FLASH MEMORY CHIPS WHICH WOULD HAVE BEEN THREATENED IF THE GATT HAD WEAKENED THE MEANS TO BRING ANTIDUMPING ACTIONS AGAINST OVERSEAS RIVALS WHO CUT PRICES BELOW THE ACTUAL PRODUCTION COSTS OR BELOW PRICES CHARGED IN DOMESTIC MARKETS THEY TURNED AROUND A SITUATION THAT COULD HAVE BEEN PRETTY BAD MR ANIXTER SAYS OF THE NEGOTIATORS WHO TOUGHENED THE ANTIDUMPING RULES SOME COUNTRY COULD HAVE DUMPED US OUT OF BUSINESS LOUIS VARGHA DIRECTOR OF FINANCE AND PLANNING AT WEYERHAEUSER CO AND CHAIRMAN OF A PAPERINDUSTRY LOBBYING GROUP SAYS THE RESULTS WERE A MIXED SUCCESS FOR HIS INDUSTRY MOST DEVELOPED COUNTRIES AGREED TO REDUCE TARIFFS ON PAPER TO ZERO SOMETHING THE INDUSTRY HAS LONG SOUGHT BECAUSE OTHER INDUSTRIALIZED COUNTRIES HAVE TARIFFS OF AT LEAST 6 ON PAPER WHILE THE US HAS TARIFFS OF 25 AND LOWER BUT THE REDUCTIONS WILL COME OVER A 10YEAR PERIOD INSTEAD OF A FIVEYEAR PERIOD AS THE INDUSTRY HOPED MOREOVER MANY DEVELOPING COUNTRIES HAVEN'T SIGNED ON TO THE ZERO TARIFF AS A RESULT THE INDUSTRY'S EXPORTS OVER A 12YEAR PERIOD WILL INCREASE BY HALF OR LESS OF THE 3 BILLION IT ESTIMATED IT OTHERWISE WOULD HAVE THE LONGER TIMETABLE WILL HURT THE EFFORTS OF US COMPANIES TO INCREASE EXPORTS TO THE EUROPEAN COMMUNITY BECAUSE SCANDINAVIAN COUNTRIES WHICH ARE MAJOR COMPETITORS HAVE A SEPARATE AGREEMENT THAT LETS THEM EXPORT TO EUROPE WITHOUT TARIFFS NOW THEY'VE WIPED US OUT IN EUROPE HE COMPLAINS FORESTPRODUCTS COMPANIES ALSO ARE UNHAPPY THAT THE JAPANESE HAVE AGREED SO FAR TO REDUCE TARIFFS BY ONLY 50 WHILE THE EC AND THE US AND CANADA HAVE AGREED TO ELIMINATE THEIR TARIFFS ALTOGETHER THE JAPANESE POSITION IS TOTALLY UNACCEPTABLE TO THE US INDUSTRY SAYS LYN WITHEY DIRECTOR OF FEDERAL CORPORATE AFFAIRS FOR INTERNATIONAL PAPER CO PURCHASE NY SHE SAID HOWEVER THAT THE US GOVERNMENT HAS PROMISED TO CONTINUE PUSHING THE JAPANESE FOR TARIFF ELIMINATION BEFORE THE AGREEMENT IS APPROVED BY CONGRESS LARRY GESS DIRECTOR OF WORLD TRADE FOR NALCO CHEMICAL CO SAYS THAT THE US HAS HAD ONLY LIMITED SUCCESS GETTING WIDESPREAD AGREEMENT ON TARIFF HARMONIZATION SPECIFICALLY HE COMPLAINED THAT MANY DEVELOPING COUNTRIES INCLUDING BRAZIL ARGENTINA INDIA AND INDONESIA DIDN'T SIGN ON THESE COUNTRIES HAVE WORLDCLASS CHEMICAL PLANTS MR GESS NOTES IF WE OPEN OUR BORDERS WITH LOW TARIFFS AND THEY KEEP THEIRS HIGH THEY CAN DO A LOT OF DAMAGE TO OUR INDUSTRY BOEING CO MCDONNELL DOUGLAS CORP AND THE REST OF THE US AEROSPACE INDUSTRY ARE CROWING BECAUSE THE GATT ACCORD INCLUDES AIRLINERS IN THE CODE FOR LIMITING SUBSIDIES AS A RESULT THE US AIRLINE INDUSTRY THINKS THE PACT SETS A FRAMEWORK FOR HAMMERING DOWN EUROPE'S SUBSIDIES OF ITS AIRBUS INDUSTRIE CONSORTIUM A WEEK AGO AIRCRAFT LOOKED LIKE THEY WOULD BE LEFT OUT OF THE SUBSIDIES CODE THE US INDUSTRY BELIEVES IT NOW HAS THE MEANS UNDER GATT TO PREVENT ASIAN INTERESTS AND WOULDBE GATT MEMBERS LIKE CHINA RUSSIA AND TAIWAN FROM FORMING A NEW JETMAKING CONSORTIUM OF THEIR OWN WITH HEAVY GOVERNMENT SUBSIDIES WE THINK WE'VE MADE SIGNIFICANT PROGRESS SAID LAWRENCE CLARKSON BOEING'S CHIEF OF INTERNATIONAL AND GOVERNMENT AFFAIRS ADDING THAT IT'S A BIG STEP IN THE PREVENTION OF THE CREATION OF A NEW SUBSIDIZED COMPETITOR SITTING IN THE US AGRICULTURE DEPARTMENTS CONTROL ROOM WAYNE BOUTWELL PRESIDENT OF THE NATIONAL COUNCIL OF FARMER COOPERATIVES WHICH REPRESENTS ABOUT 4000 LOCAL COOPERATIVES SAYS THE AGREEMENT IS IN BALANCE PRETTY GOOD FOR US FARMERS THIS IS A MARKED IMPROVEMENT FROM CURRENT TERMS HE SAYS RICE FARMERS FOR EXAMPLE SEE BIGGER OPPORTUNITIES WITH THE OPENING OF THE JAPANESE AND SOUTH KOREAN MARKETS HE SAYS PEANUT AND DAIRY FARMERS AREN'T AS PLEASED WITH THE TERMS AS OTHER FARM GROUPS BECAUSE THEY EXPECT STIFFER IMPORT COMPETITION AND IN SOME CASES DIDN'T GET ENOUGH MARKET ACCESS DWAYNE ANDREAS CHAIRMAN OF ARCHERDANIELSMIDLAND INC PRAISED THE ACCORD SAYING IT WILL BRING ABOUT A BIG GROWTH INCREASE IN TRADE THAT HELPS EVERYBODY SINCE EUROPEAN FARM SUBSIDIES TEND TO BE HIGHER THAN THOSE IN THE US THE CUTS NEGOTIATED IN GENEVA WILL MEAN A BIGGER CHANGE FOR EUROPEAN AGRICULTURE WHILE PRESIDENT CLINTON CALLED THE CONCLUSION OF THE GATT TALKS A CHRISTMAS GIFT FINANCIAL INSTITUTIONS WERE AMONG THE INDUSTRIES THAT FELT LIKE THE GRINCH STOLE THEIR PRESENTS NOW THE INDUSTRY IS PREPARED TO USE THREATS OF PROTECTIONISM TO OPEN UP FOREIGN MARKETS FAIR TRADE IN FINANCIAL SERVICES WAS PUT ASIDE FOR THE TIME BEING AFTER OBJECTIONS FROM ASIAN COUNTRIES SUCH AS SOUTH KOREA STILL BANKS ARE ENCOURAGED THAT THE CLINTON ADMINISTRATION RESERVED THE RIGHT TO RESTRICT US MARKETS IF FOREIGN MARKETS ARE CLOSED TO THEM BY 1996 THE BANKING INDUSTRY IS PLANNING TO BECOME MORE AGGRESSIVE TOWARD COUNTRIES THAT MAINTAIN BARRIERS TO US FINANCIAL CONCERNS CITICORP CHAIRMAN JOHN S REED WAS RECENTLY QUOTED SAYING WE HAVE TO BUILD A MOAT TO ENCOURAGE BRIDGES IN PARTICULAR MALAYSIA INDIA TAIWAN CHINA AND VENEZUELA WERE SAID TO BE OBSTACLES THE ULTIMATE OBJECTIVE OF MARKET LIBERALIZATION IN EMERGING MARKETS DIDN'T OCCUR SAID HENRY RUEMPLER WHO FOLLOWS INTERNATIONAL MATTERS FOR THE AMERICAN BANKERS ASSOCIATION BUT HE PRAISED THE CLINTON ADMINISTRATION'S EFFORTS PHARMACEUTICAL COMPANIES ARE PLEASED TARIFFS WILL BE PHASED OUT BUT HAVE PROBLEMS WITH A LONG PHASEIN TIME FOR PATENT PROTECTION WE'RE BOTH WINNERS AND LOSERS SAYS HARVEY BALE JR SENIOR VICE PRESIDENT INTERNATIONAL FOR THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION HE SAYS THE INABILITY OF TRADE NEGOTIATORS TO WIN CERTAIN CONCESSIONS MAKE ITS DIFFICULT FOR PHARMACEUTICAL COMPANIES TO SEE MUCH GOOD IN THE TRADE PACT PATENT PROTECTIONS WILL BE PHASED IN OVER 10 YEARS A PERIOD DURING WHICH PHARMACEUTICAL OFFICIALS ARGUE THEIR PATENTS CAN BE STOLEN PHILIP DREW A MEDICALEQUIPMENT CONSULTANT IN CONCORD MASS SAID HE DOESN'T EXPECT THE GATT AGREEMENT TO HAVE ANY SIGNIFICANT IMPACT ON US OR EUROPEAN MEDICAL EQUIPMENT MANUFACTURERS THE BUSINESS IS ALREADY ENTIRELY INTERNATIONAL HE SAID SEE RELATED ARTICLE WORLD TRADE ACCORD FINALLY WRAPPED UP BY 117 COUNTRIES WSJ DEC 16 1993 9312160060 931216 COMMODITIES ORANGE JUICE FUTURES PRICES CLIMB ON ESTIMATES BRAZILIAN CROP WILL BE SMALLER THAN EXPECTED BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL ORANGE JUICE FUTURES PRICES SHOT HIGHER ON DIMINISHING ESTIMATES OF THE BRAZILIAN ORANGE CROP AND THE ONSET OF THE TRADITIONAL FLORIDA FROST SEASON ORANGE JUICE FOR JANUARY DELIVERY WAS UP 265 CENTS TO 1109 A POUND SINCE NOV 30 WHEN THE JANUARY CONTRACT REACHED A LOW OF 9555 CENTS A POUND THE PRICE HAS CLIMBED MORE THAN 16 PRELIMINARY ESTIMATES ARE SUGGESTING THAT BRAZIL'S 199495 CROP IS GOING TO BE SIGNIFICANTLY REDUCED SAID JUDITH GANES ORANGE JUICE ANALYST FOR MERRILL LYNCH IT HAD BEEN THOUGHT THAT IT WAS GOING TO BE A STRONG CROP BUT DRY WEATHER AND DISEASE HAS APPARENTLY CHANGED THAT THE FIRST HINT THAT BRAZIL'S CROP MIGHT BE WEAKER THAN EXPECTED CAME IN NEWS REPORTS FRIDAY WHICH SPAWNED A RALLY MONDAY IN ORANGE JUICE PRICES PROFITTAKING SET THE MARKET BACK ON TUESDAY BUT ITS TONE HAS BEEN STRONG SINCE THEN ANOTHER FACTOR LENDING STRENGTH TO THE MARKET IS THE ADVENT OF THE HOLIDAY PERIOD WHICH HISTORICALLY HAS BEEN THE TIME THAT MOST FROSTS OCCUR IN FLORIDA THE STATE'S ORANGE CROP IS NOW BEING HARVESTED BUT A FROST IN THE NEXT FEW WEEKS STILL COULD DAMAGE IT CHRISTMAS AND NEW YEAR'S WEEKS HAVE TYPICALLY BEEN THE FREEZE WEEKS SAID SANDRA KAUL ORANGE JUICE ANALYST FOR SMITH BARNEY SHEARSON IT'S BEEN CHILLY IN NORTHERN FLORIDA BUT FOR A FROST YOU HAVE TO SEE TEMPERATURES IN THE MID20S FOR FOUR CONSECUTIVE HOURS AND THERE'S NOTHING TO SUGGEST THAT ODDLY ANALYSTS SAID MOST SMALL SPECULATORS ARE HOLDING SHORT POSITIONS IN ORANGE JUICE FUTURES CONTRACTS WHICH ARE WAGERS THAT FUTURES PRICES WILL DECLINE THAT'S BECAUSE THE MARKET HAD BEEN IN A DOWNTREND BEFORE THE PRESENT RALLY BEGAN IF PRICES CONTINUE TO RISE MANY OF THESE SPECULATORS MAY BEGIN TO LIQUIDATE THEIR POSITIONS ADDING MORE UPWARD MOMENTUM TO THE MARKET MS GANES SAID I DON'T THINK THAT THE SPECULATORS ARE FEELING ALL THAT COMFORTABLE BEING SHORT SHE SAID OVER THE NEXT FEW WEEKS THE MARKET IS LIKELY TO CONTINUE TO BE HYPERSENSITIVE TO FORECASTS OF COLD AIR MOVING INTO FLORIDA ANALYSTS SAID IN OTHER COMMODITY MARKETS YESTERDAY ENERGY AN INDUSTRY REPORT ON US CRUDE OIL INVENTORIES PUSHED PRICES LOWER ON THE NEW YORK MERCANTILE EXCHANGE SOME MARKET WATCHERS WERE IN FACT SURPRISED THAT PRICES DIDN'T GO EVEN LOWER GIVEN THE BEARISHNESS OF AMERICAN PETROLEUM INSTITUTE STATISTICS SHOWING A SIXMILLIONBARREL INCREASE IN US CRUDE STOCKS FOR THE WEEK ENDED DEC 10 THE FACT THAT PRICES DIDN'T GO ANY LOWER SUGGESTED TO SOME TRADERS THAT OIL PRICES MAY HOLD FOR A WHILE JANUARY CRUDE FELL 11 CENTS TO SETTLE AT 1441 WITH FEBRUARY CONTRACTS DOWN A LIKE AMOUNT PETROLEUM PRODUCTS FOR JANUARY DELIVERY SETTLED HIGHER BUT HEATING OIL IS STILL UNDER SOME PRICE PRESSURE DUE TO UNSEASONABLY WARM WEATHER LIVESTOCK & MEATS CATTLE FUTURES PRICES ROSE ON CONCERNS ABOUT SEVERE WINTER WEATHER AND EXPECTATIONS OF INCREASING DEMAND FOR RED MEAT AT THE CHICAGO MERCANTILE EXCHANGE CATTLE FOR FEBRUARY DELIVERY WERE UP 0475 CENT TO 74075 CENTS A POUND LAST WINTER HARSH WEATHER OVER THE CENTRAL AND SOUTHERN PLAINS STATES SET BACK THE GROWTH OF CATTLE HERDS PREVENTING THEM FROM REACHING SLAUGHTER WEIGHT SAID CHARLES LEVITT SENIOR LIVESTOCK ANALYST FOR ALARON TRADING CORP TRADERS ARE CONCERNED ABOUT A REPEAT OF THE SEVERE WEATHER MOREOVER THE PERIOD AFTER THE HOLIDAYS TRADITIONALLY FEATURES STRONG DEMAND FOR RED MEAT WITH BEEF PRICES RELATIVELY LOW TRADERS EXPECT RETAILERS TO STOCK UP ON RED MEAT AFTER THE HOLIDAYS 9312160059 931216 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO INFO OVERLOAD WORDOFMOUTH HELPS CONQUER THE CRUSH OF DATA RELYING ON REFERRALS EMERGES AS A TIMESAVER AND KEY STRATEGY FOR SCREENING NEWS AN INFORMAL SURVEY OF EXECUTIVES SHOWS JOHN SEELY BROWN OF XEROX'S PALO ALTO RESEARCH CENTER IN CALIFORNIA RELIES ON ELECTRONICMAIL MESSAGES FROM FRIENDS AND COWORKERS WORLDWIDE TO CLUE HIM IN ON HOT ISSUES AND HELPFUL REPORTS THIS WAY HE SAYS I SPEND LESS TIME READING USELESS ARTICLES BERNARD GALLAGHER PRESIDENT OF CABLE FIRM CENTURY COMMUNICATIONS WELCOMES REFERRALS TO ARTICLES I'M MORE LIKELY TO READ A PIECE SENT BY ONE OF OUR EXECUTIVES HE SAYS LOSING FAVOR AS INFORMATION SOURCES ARE MAGAZINES NEWSPAPERS TRADE JOURNALS AND TV WE'RE LOOKING AT SUBSCRIPTIONS VERY CAREFULLY SAYS JILL FLYNN OF FIRST UNION CORP CHARLOTTE NC THE BANK DOES WORKSHOPS AS WELL ON HOW TO ORGANIZE THE INFORMATION SEARCH COOPERS & LYBRAND SUPPLIES TOOLS TO SCREEN EMAIL AND DATABASES COLLECT CLIENT NEWS AND ARRANGE EMAIL MESSAGES IN PRIORITY SAYS ELLEN KNAPP VICE CHAIRMAN PR MAN HOWARD J RUBINSTEIN USED TO JOG WITH A DICTAPHONE TO SAVE TIME HE QUIT WHEN HIS SECRETARY COMMENTED ON THE HUFFING AND PUFFING FOR A DEAL ON AIR FARE BUY SHARES IN EUROPE A LITTLEKNOWN SHAREHOLDER PERK FROM BRITISH AIRWAYS AND SWISSAIR IS DISCOUNT COUPONS FOR TICKETS BRITISH AIRWAYS EACH YEAR GIVES HOLDERS WITH 200 OF ITS UKREGISTERED SHARES A COUPON FOR 10 OFF THE PRICE OF A TRIP THIS YEAR THE BOOTY IS BIGGER 20 OFF A TICKET USED BETWEEN JAN 1 AND MARCH 31 FOR EVERY SWISSAIR SHARE AN INVESTOR GETS A COUPON WORTH 15 SWISS FRANCS 10 OFF THE TICKET BUT COUPONS USED PER TICKET ARE LIMITED TO A MAXIMUM OF 50 OF THE FARE HOLDERS OF BRITISH AIRWAYS' AMERICAN DEPOSITARY RECEIPTS AREN'T OFFERED THE PERK UNLIKE EUROPE THE AIRLINE SAYS SUCH VOUCHERS WOULD BE TAXED IN THE US ALSO US AIRLINES DON'T PAMPER THEIR INVESTORS THIS WAY IN AMERICA FARES ARE TYPICALLY MUCH LOWER THAN IN EUROPE SAYS SMITH BARNEY SHEARSON'S VIVIAN LEE SOFTWARE FIRMS STAKE OUT THE GROWING CONSUMER MARKET FOR BUDGET TITLES WITH COMPUTERS A FIXTURE IN MORE HOMES SOME SOFTWARE MAKERS CHURN OUT GAME CHECKBOOK AND OTHER HOMEUSE TITLES PRICED AT UNDER 15 AND EVEN UNDER 5 TO SELL IN MASSMERCHANDISE STORES SUPERMARKETS AND DRUG CHAINS FLORIDABASED VALUE SOFTWARE'S LINE OF UNDER5 PRODUCTS REACHED SUPERMARKETS LAST MONTH GAMES WENT NEAR THE CEREAL AND TOY AISLES HOME FINANCE TOOK SPOTS BY THE CLEANINGGOODS SECTIONS MEANWHILE SOFTKEY SOFTWARE OF CAMBRIDGE MASS TESTS GASSTATION LOCATIONS PEOPLE HAVE BEEN SELLING INEXPENSIVE SOFTWARE FOR YEARS BUT THAT MARKET IS BEGINNING TO PICK UP SAYS JEFFREY TARTER OF SOFTLETTER A WATERTOWN MASS NEWSLETTER HE ADDS THAT WHILE SOME OF THE SOFTWARE PRODUCTS MAY BE BUGGY THEY ARE GETTING BETTER KEVIN O'LEARY OF SOFTKEY EXPECTS MORE SOPHISTICATED SOFTWARE IN THE 15ANDUNDER CATEGORY AS CDROM USE WIDENS SINCE THOSE DISKS HOLD MORE DATA THESE COMPANIES ARE TRYING TO MAKE SOFTWARE MORE OF AN IMPULSE PURCHASE SAYS JOANNA TAMER OF CALIFORNIA CONSULTING FIRM SOS INC A MOVABLE FEAST IN JAPAN PIONEER ELECTRONIC CORP'S CARNAVIGATION SYSTEM USES CDROM DISKS AND GLOBAL POSITIONING SATELLITE TECHNOLOGY TO SHOW DRIVERS WHERE THEY ARE IT ALSO PLAYS GAMES AND KARAOKE MUSIC THE MIKE IS MOUNTED ON A VISOR OR WORN ON A HEADSET DELVING INTO DINING HABITS A ZAGAT SURVEY FOUND THAT ONLY 36 OF NEW YORKERS SAY THEY ALWAYS CHECK THEIR BILL 12 HARDLY EVER DO MEANWHILE RESTAURANTS IN AN AMERICAN EXPRESS POLL SAY THE AVERAGE PERCENTAGE OF DINERS NOT SHOWING UP FOR RESERVATIONS RISES TO 40 DURING THE HOLIDAYS FROM 10 CATHOLIC UNIVERSITY IN WASHINGTON STARTS LISTING THE LANGUAGE ABILITIES OF ITS FACULTY IN ITS SOURCEBOOK AFTER SEEING A SURGE IN CALLS FROM SPANISHLANGUAGE BROADCASTERS ATM CARDS LET BANKERS REACH NONHOLDERS OF BANK ACCOUNTS CHEMICAL BANK AND CITIBANK ARE TAPPING THIS UNBANKED MARKET VIA ATM CARDS TIED TO COMPANIES' DIRECTDEPOSIT PROGRAMS BOTH CHEMICAL'S READY PAY CARD BEGUN IN 1992 AND CITIBANK'S PAYTM CARD LAUNCHED LAST MONTH ALLOW NONACCOUNT HOLDERS WHO SIGN UP FOR A COMPANY DIRECTDEPOSIT SERVICE TO WITHDRAW ALL OR PART OF THEIR PAY FROM ATMS THE PAYCHECKS GO INTO OMNIBUS ACCOUNTS SET UP BY THE COMPANIES AND INDIVIDUAL WITHDRAWALS ARE TRACKED SO THAT THEY DON'T EXCEED EACH EMPLOYEE'S DEPOSIT THE SYSTEMS ARE AKIN TO PILOT PROGRAMS THAT USE ATMS TO DISBURSE WELFARE CHECKS AND SUCH SAYS CLAIRE TAYLOR OF EFT REPORT NEWSLETTER CHRIS LEWIS OF THE CONSUMER FEDERATION OF AMERICA LIKES THE IDEA AS LONG AS PARTICIPATION IS VOLUNTARY NONACCOUNT HOLDERS GET A SAFE PLACE TO STORE THEIR MONEY HE SAYS THE COMPANIES WHO PAY FOR THE SERVICE ENJOY PAYROLL SAVINGS DUE TO A WIDER DIRECTDEPOSIT BASE BANKS BENEFIT FROM SHORTER CHECKCASHING LINES CHEMICAL SAYS 10 OF ITS 5000 READY PAY CUSTOMERS ARE NOW ACCOUNT HOLDERS BRIEFS THE NEW YORKBASED B FIT NETWORK OF FITNESS TRAINERS FAXES CLIENT DATA SO THAT OUTOFTOWN GYMS HAVE THE LOWDOWN ON TRAVELING EXECUTIVES' MEDICAL HISTORIES AND EXERCISE REGIMENS PURINA MILLS HOLDS A CONTEST FOR THE OLDEST HORSE IN THE US THE PRIZE A TON OF EQUINE SENIOR FEED 9312160058 931216 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS FEDERAL FUNDS 3 1/8 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 320 30 TO 43 DAYS 318 44 TO 119 DAYS 326 120 TO 149 DAYS 328 150 TO 179 DAYS 330 180 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 335 30 DAYS 334 60 DAYS 335 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 263 TWO MONTHS 268 THREE MONTHS 281 SIX MONTHS 306 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 325 ONE MONTH 327 THREE MONTHS 337 SIX MONTHS BANKERS ACCEPTANCES 315 30 DAYS 315 60 DAYS 315 90 DAYS 319 120 DAYS 322 150 DAYS 325 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 5/16 THREE MONTHS 3 1/2 SIX MONTHS 3 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 6 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 708 60 DAYS 718 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 270 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9312160057 931216 COUNTRYWIDE CREDIT SAYS EARNINGS SLOW SENDING STOCK DOWN PASADENA CALIF COUNTRYWIDE CREDIT INDUSTRIES INC'S QUARTERAFTERQUARTER EARNINGS GROWTH HIT THE SKIDS AS COUNTRYWIDE POSTED NET INCOME FOR THE THIRD QUARTER ENDED NOV 30 OF 43 MILLION OR 70 CENTS A SHARE PROFIT WAS UP 14 FROM THE YEAREARLIER PERIOD BUT OFF FROM THE SECOND QUARTER'S 461 MILLION OR 76 CENTS A SHARE THE NEWS PUSHED SHARES OF THE HIGHFLYING MORTGAGE BANKER DOWN 225 TO 24375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE COMPANY BLAMED THE EARNINGS DROP ON LOWER PROFITS FROM LOAN SERVICING DURING THE QUARTER AS THE BOTTOMINGOUT OF INTEREST RATES CAUGHT THE COMPANY IN A WHIPSAW AN INCREASE IN LOAN PREPAYMENTS DUE TO MORTGAGE REFINANCINGS FORCED COUNTRYWIDE TO BOOST ITS AMORTIZATION OF SERVICING EXPENSES AT THE SAME TIME THE GAIN FROM THE FINANCIAL HEDGE IT USES TO OFFSET INTERESTRATE FLUCTUATIONS WAS LOWER THAN IN PREVIOUS QUARTERS WITH RESULTS FOR THE QUARTER FALLING AS MUCH AS SEVEN CENTS A SHARE BELOW SOME WALL STREET ESTIMATES ANALYSTS REACTED QUICKLY TO THE BAD NEWS FROM THE NATION'S LARGEST MORTGAGE BANKER SALOMON BROTHERS INC CUT ITS FISCAL 1995 EARNINGS ESTIMATE FOR THE COMPANY TO 350 A SHARE FROM 380 STILL THERE WERE BRIGHT SPOTS IN THE FINANCIAL PICTURE FOR THE QUARTER TOTAL REVENUE ROSE 44 TO 1964 MILLION FROM 1366 MILLION A YEAR AGO AND THE COMPANY SET A RECORD FOR LOANPRODUCTION OF 142 BILLION UP FROM THE YEAREARLIER 97 BILLION ITS LOAN SERVICING PORTFOLIO GREW TO 78 BILLION WITH AN AVERAGE INTEREST RATE OF 73 UP FROM 476 BILLION A YEAR AGO 9312160056 931216 INTERNATIONAL BRIEF PHILIPPINE NATIONAL OIL CO HIGHEST BID FOR PETRON STAKE SUBMITTED BY SAUDI ARAMCO IN MANILA'S LARGEST PRIVATIZATION TO DATE SAUDI ARABIAN OIL CO OR SAUDI ARAMCO SUBMITTED THE HIGHEST BID OF 502 MILLION FOR A 40 STAKE IN PETRON CORP THE PHILIPPINES' BIGGEST OILREFINING AND MARKETING COMPANY TWO OTHER COMPANIES TOOK PART IN THE BIDDING PETROLIAM NASIONAL BHD OR PETRONAS MALAYSIA'S NATIONAL PETROLEUM AND GAS COMPANY BID 421 MILLION BELOW THE GOVERNMENT'S FLOOR PRICE OF 440 MILLION ANOTHER MALAYSIAN COMPANY WESTMONT HOLDINGS SDN BHD WAS DISQUALIFIED ON TECHNICAL GROUNDS AND ITS BID LEFT UNOPENED A PETRON OFFICIAL DECLINED TO ELABORATE ON THE RULING AN ADDITIONAL 20 OF PETRON A SUBSIDIARY OF THE STATE PHILIPPINE NATIONAL OIL CO OR PNOC WILL BE SOLD THROUGH A PUBLIC STOCK OFFERING IN THE FIRST QUARTER OF NEXT YEAR STOCK ANALYSTS SAY THAT SALE COULD RAISE BETWEEN 144 MILLION AND 323 MILLION 9312160055 931216 MOTOROLA ENGINEER SAYS CELLULAR ANTENNA CAUSED BRAIN CANCER NEW YORK A MOTOROLA INC ENGINEER AND HIS WIFE FILED A LAWSUIT AGAINST THE COMPANY CHARGING THAT AN EXPERIMENTAL CELLULAR PHONE ANTENNA HE WORKED ON CAUSED HIS BRAIN CANCER THE SUIT FILED IN COOK COUNTY COURT IN CHICAGO BY ROBERT AND PATRICIA KANE ALLEGES THAT MOTOROLA AND SEVERAL OF ITS EXECUTIVE SCIENTISTS FORCED MR KANE TO TEST AN EXPERIMENTAL PORTABLE PHONE ANTENNA DESIGN ANTICIPATING A STORY FEATURING MR KANE'S COMPLAINT TONIGHT ON CBS NEWS'S EYE TO EYE WITH CONNIE CHUNG MOTOROLA WENT ON THE OFFENSIVE YESTERDAY IT SAID THE SUIT WAS GROUNDLESS AND THAT ITS CELLULAR PHONES AND MANUFACTURING PROCESSES ARE SAFE WHATEVER THE MERIT OF THE KANE'S SUIT IT IS CERTAIN TO INFLAME THE CONTROVERSY SURROUNDING PORTABLE CELLULAR PHONES WHICH ARE NOW USED BY MORE THAN 10 MILLION AMERICANS ALMOST A YEAR AGO A FLORIDA MAN TOUCHED OFF THE DEBATE OVER CELLULAR PHONE SAFETY WHEN HE FILED A SUIT AGAINST A JAPANESE CELLULAR PHONE MANUFACTURER ALLEGING THAT ONE OF ITS PHONES CAUSED HIS WIFE'S BRAIN CANCER THAT SUIT FILED IN CIRCUIT COURT IN PINELLAS COUNTY FLA IS AWAITING TRIAL THE KANES'S COMPLAINT SAYS THE TESTING OF THE ANTENNA ON THREE SEPARATE DAYS IN SEPTEMBER AND NOVEMBER 1984 SUBJECTED MR KANE TO AN UNSAFE ENERGY DENSITY LEVEL WHICH LED TO THE DEVELOPMENT OF HIS BRAIN TUMOR THE ENERGY LEVEL WAS 100 TIMES THE RADIATION LEVEL OF ELECTROMAGNETIC FIELDS THAT NORMAL PERSON WOULD BE REGULARLY SUBJECTED TO SAID THE KANE'S LAWYER BRUCE GOODHART ADDING THAT MR KANE'S DOCTORS TOLD HIM HE HAS FOUR MORE YEARS TO LIVE THE KANES COULDN'T BE REACHED FOR COMMENT A MOTOROLA SPOKESMAN COUNTERED THAT THE PHONE MR KANE USED EMITTED ONETENTH OF A WATT OR SIX TIMES BELOW CURRENTLY ACCEPTABLE LIMITS SET BY THE AMERICAN NATIONAL STANDARDS INSTITUTE WHILE THE KANES'S ATTORNEY SAID THE COUPLE IS SEEKING DAMAGES OF OVER 50000 AND FULL PAYMENT OF HIS MEDICAL EXPENSES MOTOROLA SAID THE SUIT CAME AFTER THE COMPANY REFUSED TO SETTLE WITH THE COUPLE IN THE SUMMER FOR 5 MILLION 9312160054 931216 INTERNATIONAL BRIEF VOLKSWAGEN AG SPANISH UNIT SEAT RECEIVES APPROVAL FOR DEEP JOB CUTS THE REGIONAL GOVERNMENT OF CATALONIA SPAIN APPROVED DEEP JOB CUTS AT THE SEAT SA UNIT OF VOLKSWAGEN AG IN THE FIRST STEP TO CLOSING THE CAR MAKER'S INEFFICIENT ZONA FRANCA FACTORY IN BARCELONA SEAT EXECUTIVES HOPE THE DECISION WILL CLEAR THE WAY FOR VW TO INJECT 120 BILLION PESETAS 8576 MILLION INTO ITS UNPROFITABLE SPANISH UNIT ALTHOUGH MOST OF THE 9000 JOB CUTS ANNOUNCED AT SEAT ARE TEMPORARY SEAT'S CHAIRMAN JUAN LLORENS SAID HE WAS CONFIDENT VW WOULD APPROVE SEAT'S VIABILITY PLAN AND PROVIDE THE FRESH FUNDS THE COMPANY NEEDS TO STAY ALIVE VW'S SUPERVISORY BOARD HAS CALLED A MEETING FOR SATURDAY TO DISCUSS THE PROBLEMS AT SEAT SEAT EMPLOYS 23000 PEOPLE OF WHICH 13500 WORK AT ZONA FRANCA SEAT PLANS TO LAY OFF A TOTAL OF 4616 WORKERS FOR A TWOYEAR PERIOD MEANTIME SOME SEAT WORKERS WILL BE RELOCATED WHILE SOME WILL BE GIVEN EARLY RETIREMENT 9312160052 931216 ASPIN RESIGNS FROM DEFENSE AFTER A YEAR BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DEFENSE SECRETARY LES ASPIN ENDED A TUMULTUOUS TERM AT THE PENTAGON BY ANNOUNCING THAT HE WILL LEAVE JAN 20 AFTER EXACTLY ONE YEAR ON THE JOB PRESIDENT CLINTON SEEMED ALMOST COLD IN ANNOUNCING THE FIRST DEPARTURE FROM HIS CABINET WHICH CAME AS A SURPRISE HE SAID MR ASPIN WAS LEAVING FOR PERSONAL REASONS HE DIDN'T ELABORATE IT'S TIME FOR ME TO TAKE A BREAK AND UNDERTAKE A NEW KIND OF WORK MR ASPIN SAID IN HIS LETTER OF RESIGNATION THE DECISION TO RESIGN WAS MADE ONLY YESTERDAY AFTERNOON A SENIOR DEFENSE OFFICIAL SAID PENTAGON AIDES SAID MR ASPIN WASN'T FORCED OUT BUT INSTEAD WAS WORN DOWN BY A DIFFICULT YEAR FILLED WITH CONTROVERSIES OVER HOMOSEXUALS IN THE MILITARY THE TAILHOOK SEXUALHARASSMENT SCANDAL BOSNIA SOMALIA HAITI AND MOST RECENTLY NORTH KOREA IN ADDITION THERE WAS A SENSE AMONG SOME ASPIN AIDES THAT THE PRESIDENT HAS NEVER APPRECIATED HOW TIRING IT HAS BEEN TO MEDIATE BETWEEN A WHITE HOUSE THAT APPEARS TO CARE LITTLE ABOUT THE MILITARY AND A MILITARY THAT NOW RECIPROCATES THAT FEELING TWO SENIOR WHITE HOUSE AIDES WHO RECENTLY ANNOUNCED THEIR DEPARTURES CITED EXHAUSTION AS PART OF THEIR REASONS FOR LEAVING THE DEFENSE OFFICIAL SAID MR ASPIN HAD QUIETLY DISCUSSED LEAVING OVER THE PAST TWO MONTHS AND HAD BROACHED THE ISSUE WITH WHITE HOUSE OFFICIALS EARLIER THIS WEEK THIS OFFICIAL SAID MR ASPIN HAD CONTEMPLATED RESIGNING EVER SINCE THE OCT 3 SOMALIA FIREFIGHT IN WHICH 18 US ARMY RANGERS WERE KILLED THE SOMALIA THING HAD WEIGHED VERY HEAVILY ON HIM THE OFFICIAL SAID THE WHITE HOUSE ALREADY HAS SETTLED ON TWO CANDIDATES TO SUCCEED MR ASPIN AND HOPES TO ANNOUNCE A CHOICE SOON OFFICIALS DECLINED TO IDENTIFY THE TWO THE MOST LIKELY SUCCESSOR FOR MR ASPIN IS PROBABLY JAMES WOOLSEY CURRENTLY DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY ALTHOUGH IDEOLOGICALLY SIMILAR TO MR ASPIN BOTH MEN ARE PRODEFENSE DEMOCRATS MR WOOLSEY IS SLIGHTLY YOUNGER AND PROBABLY MORE EMOTIONALLY SYMPATHETIC WITH MR CLINTON WHILE MR ASPIN SERVED IN THE PENTAGON DURING THE VIETNAM WAR FOR EXAMPLE MR WOOLSEY LIKE THE PRESIDENT MARCHED AGAINST IT THERE ALSO WAS TALK YESTERDAY THAT RETIRED ADM WILLIAM CROWE FORMER CHAIRMAN OF THE JOINT CHIEFS OF STAFF AND A CLINTON CAMPAIGN ADVISER WOULD BE PICKED BUT PENTAGON OFFICIALS POINTED OUT THAT FORMER TOP OFFICERS ARE BARRED BY LAW FROM TAKING TOP CIVILIAN POSTS AT THE DEFENSE DEPARTMENT FOR 10 YEARS AFTER RETIRING AT THE SAME TIME OTHERS HAVE SAID CONGRESS MIGHT BE WILLING TO WAIVE OBSERVANCE OF THAT LAW IF THE PRESIDENT ASKS THERE WERE REPORTS LAST NIGHT THAT RETIRED NAVY ADM BOBBY INMAN A CAREER INTELLIGENCE OFFICER WAS THE PRESIDENT'S CHOICE THE SELECTION OF ADM INMAN WOULD BE WARMLY RECEIVED BY THE MILITARY AND ESPECIALLY THE NAVY ADM INMAN WOULD ALSO BE A POPULAR CHOICE WITH CONGRESS WHERE HE HAD A REPUTATION AS AN INNOVATIVE THINKER AND AN UNUSUALLY CANDID WITNESS IN HIS CONGRESSIONAL APPEARANCES WHOEVER BECOMES THE NEXT DEFENSE SECRETARY WILL INHERIT A DIFFICULT SITUATION WITH THE DEFENSE BUDGET IN RECENT DAYS THE PENTAGON AND THE WHITE HOUSE BUDGET OFFICE HAVE BEEN ON A COLLISION COURSE ON THE FISCAL 1995 BUDGET SOME CLINTON AIDES HAD HOPED TO CUT THE BUDGET BELOW 250 BILLION WHILE SOME ASPIN AIDES ARGUED THAT FEDERAL PAY RAISES AND NEW INFLATION ESTIMATES REQUIRED THAT THE BUDGET BE INCREASED A CUT OF MORE THAN A FEW BILLION WOULD HAVE REQUIRED MR ASPIN TO REOPEN HIS PAINSTAKING BOTTOMUP REVIEW OF HOW TO RESHAPE THE ENTIRE US MILITARY ESTABLISHMENT TO FIT THE POSTCOLD WAR WORLD SLOWLY AND PAINFULLY THE MILITARY AGREED TO SUPPORT THE CONSENSUS DOCUMENT WHICH ACCELERATED CUTS INITIATED BY THE BUSH ADMINISTRATION A NEW DEFENSE SECRETARY MIGHT BE LESS INCLINED TO SUPPORT THE BOTTOMUP REVIEW AND GO WITH THE BIGGER CUTS THE WHITE HOUSE WANTS BUT IF HE OR SHE DID SO THE MILITARY VERY LIKELY WOULD FEEL THAT IT HAD BEEN SNOOKERED BY THE CLINTON ADMINISTRATION ON THE OTHER HAND MR ASPIN HAS CLEARED AWAY MANY OF THE TOUGHEST ISSUES AT THE PENTAGON IN ADDITION TO IMPLEMENTING A COMPROMISE ON HOMOSEXUALS IN THE MILITARY HE HAS RESOLVED THE ISSUE OF ALLOWING WOMEN IN SOME COMBAT ROLES AND BROUGHT MOST OF THE TAILHOOK SCANDAL TO A CONCLUSION JUST YESTERDAY MORNING HE UNVEILED HIS PROPOSAL TO REMEDY THE TROUBLED C17 MILITARY CARGOJET PROGRAM WHICH FOR YEARS HAS BEEN THE PENTAGON'S SINGLE MOST NETTLESOME ACQUISITION PROBLEM HE WAS CALM AND CONFIDENT AT THE NEWS CONFERENCE AT WHICH HE PRESENTED THE FIXES AND GAVE NO INDICATION THAT HE WOULD SUBMIT HIS RESIGNATION FIVE HOURS LATER MR ASPIN WHO IS 55 YEARS OLD BUT APPEARS OLDER HAD HEART PROBLEMS EARLY THIS YEAR AND HAD A PACEMAKER IMPLANTED WHEN ASKED SUNDAY ON NBC NEWS'S MEET THE PRESS ABOUT HOW HIS HEALTH WAS HE REPLIED VERY GOOD AND WHEN ASKED RECENTLY IF HE WAS CONTEMPLATING RESIGNING HE EMPHATICALLY SAID NO THE DEFENSE SECRETARY HAD A DIFFICULT TIME POLITICALLY AT THE PENTAGON ALMOST FROM THE START THE QUICK SUCCESSION OF CRISES RESULTED IN MR ASPIN'S BEING CRITICIZED AS A POOR LEADER OF THE MILITARY AND PRESIDENT CLINTON'S FREQUENT PORTRAYAL AS A WEAK COMMANDER IN CHIEF THE BIGGEST SINGLE BLOW TO MR ASPIN CAME WITH THE OCTOBER FIREFIGHT IN MOGADISHU AFTER US SOLDIERS SUFFERED NEARLY 100 CASUALTIES ANGRY ARMY OFFICERS DISCLOSED THAT MR ASPIN HAD TURNED DOWN A REQUEST FROM THE AMERICAN COMMANDER IN SOMALIA FOR ARMORED VEHICLES IT ISN'T CLEAR WHETHER THOSE VEHICLES WOULD HAVE CHANGED MATTERS ON OCT 3 OR EVEN WHETHER THEY WOULD HAVE ARRIVED IN SOMALIA BY THEN HAD HE APPROVED THE REQUEST EVEN SO IN THE WAKE OF THE DEATHS MR ASPIN WAS HEAVILY CRITICIZED ON CAPITOL HILL WITH DOZENS OF MEMBERS OF CONGRESS CALLING FOR HIS RESIGNATION ONE OF THOSE LAWMAKERS SEN HANK BROWN R COLO YESTERDAY APPLAUDED THE RESIGNATION SAYING THAT MR ASPIN WAS CLEARLY UNSUITED FOR THE JOB 9312160051 931216 BUSINESS BRIEF VALUE HEALTH INC PREFERRED HEALTH CARE LTD ACQUISITION IS COMPLETED VALUE HEALTH INC SAID IT COMPLETED ITS ACQUISITION OF PREFERRED HEALTH CARE LTD AFTER SHAREHOLDERS OF BOTH COMPANIES APPROVED THE STOCK TRANSACTION VALUED AT ABOUT 400 MILLION THE TRANSACTION WILL GREATLY EXPAND VALUE HEALTH'S PRESENCE IN THE MENTAL HEALTH BENEFITMANAGEMENT BUSINESS AS WELL AS BRING VALUE HEALTH TO THE WORKERS COMPENSATION ARENA VALUE HEALTH PROVIDES SPECIALTY MANAGEDCARE BENEFIT PROGRAMS AND HEALTHCARE INFORMATION SERVICES PREFERRED BASED IN WILTON CONN AND VALUE HEALTH BASED IN AVON CONN WILL JOIN THEIR MENTAL HEALTH AND SUBSTANCE ABUSE DIVISIONS TO FORM VALUE BEHAVIORAL HEALTH WHICH VALUE HEALTH SAID WILL BE THE NATION'S LARGEST PROVIDER OF MENTAL HEALTH AND SUBSTANCE ABUSE PROGRAMS COVERING MORE THAN 125 MILLION PEOPLE VALUE HEALTH SAID THE NEW UNIT WAS SELECTED BY GUARDIAN INSURANCE CO NEW YORK TO PROVIDE A MENTAL HEALTH AND SUBSTANCE ABUSE BENEFIT TO GUARDIAN CUSTOMERS IN NEW JERSEY THE CONTRACT IS EXPECTED TO GENERATE ABOUT 8 MILLION IN REVENUE IN 1994 9312160050 931216 ABREAST OF THE MARKET INDUSTRIALS FALL AGAIN SET BACK BY STEEP PLUNGE IN KODAK SHARES BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK A STEEP PLUNGE IN EASTMAN KODAK'S SHARES WAS ADDED TO THE LIST OF WORRIES FACING INVESTORS SENDING STOCK PRICES LOWER A DISAPPOINTING EARNINGS FORECAST FROM THE ROCHESTER NY PHOTOGRAPHICSUPPLY COMPANY SLICED 7 1/4 OR NEARLY 12 OFF ITS SHARE PRICE AND CLOBBERED THE DOW JONES INDUSTRIAL AVERAGE KODAK ENDED AT 55 1/2 ON MARKETLEADING VOLUME OF 117 MILLION SHARES THE DOW INDUSTRIALS CLOSED AT THEIR SESSION LOW FOR A SECOND STRAIGHT DAY DOWN 2571 OR 069 TO 371692 MORE THAN 16 POINTS OF THE DECLINE IS ATTRIBUTABLE TO KODAK A COMPONENT ISSUE OF THE AVERAGE BROADER INDEXES THAT TRACK MOSTLY NEW YORK STOCK EXCHANGE ISSUES ALSO EASED BUT THOSE LOSSES WERE MUCH SLIMMER THAN THOSE OF THE DOW PRICES INCHED HIGHER ON THE NASDAQ STOCK MARKET INVESTORS HAVE BECOME INCREASINGLY RELUCTANT TO MAKE NEW BETS ON STOCKS IN THE PAST SEVERAL SESSIONS WEAKNESS IN THE BOND MARKET UNSETTLING POLITICAL DEVELOPMENTS IN RUSSIA AND HISTORICALLY HIGH MARKET VALUATIONS ALL HAVE CAUSED CONCERN THE STANDARD & POOR'S 500 STOCK INDEX FELL 122 OR 026 TO 46184 THE NEW YORK STOCK EXCHANGE COMPOSITE STOCK INDEX LOST 076 OR 030 TO 25543 AND THE DOW JONES EQUITY MARKET INDEX DROPPED 114 OR 026 TO 43732 THE NASDAQ COMPOSITE INDEX ADDED 150 OR 020 TO 75297 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX SLID 189 OR 041 TO 45994 NUMBER OF ADVANCING ISSUES TRAILED DECLINERS 895 TO 1172 VOLUME ON THE BIG BOARD ROSE TO 3076 MILLION SHARES FROM 2739 MILLION SHARES TUESDAY INTEL ADDED 1 1/4 TO 58 3/4 AND NOVELL INCREASED 1/2 TO 20 1/8 BOTH ON NASDAQ INTERNATIONAL BUSINESS MACHINES ADDED 7/8 TO 56 AND TEXAS INSTRUMENTS ROSE 1 5/8 TO 61 7/8 IN BIG BOARD TRADING YESTERDAY'S MAJOR ECONOMIC NEWS WAS POSITIVE THE FEDERAL RESERVE SAID INDUSTRIAL PRODUCTION ROSE 09 LAST MONTH AND REPORTED THAT FACTORIES UTILITIES AND MINES WERE RUNNING AT 83 OF CAPACITY IN THAT PERIOD BOTH WERE STRONGER THAN EXPECTED EASTMAN KODAK SAID IT EXPECTS ITS 1994 RESULTS TO FALL SHORT OF ANALYSTS' ESTIMATES WITH EARNINGS GROWTH IN A MODERATE MIDSINGLEDIGIT RANGE THE DISCLOSURE CAUSED A STRING OF BROKERAGE FIRMS TO CUT THEIR INVESTMENT RATINGS ON THE COMPANY'S STOCK AMWAY ASIA PACIFIC SURGED TO 28 5/8 ON ITS FIRST DAY OF TRADING UP FROM AN OFFERING PRICE OF JUST 18 A SHARE DEMAND WAS HEAVY FOR THE 79 MILLION SHARES SOLD BY THE COMPANY WHICH DISTRIBUTES PERSONALCARE PRODUCTS IN ASIA AND AUSTRALIA TIG HOLDINGS EASED 5/8 TO 20 5/8 ON HEAVY VOLUME OF 59 MILLION SHARES TRANSAMERICA SOLD ITS REMAINING 173MILLION SHARE INTEREST IN THE PROPERTY AND CASUALTY INSURER THROUGH A PUBLIC OFFERING PRICED AT 21 A SHARE TRANSAMERICA SHARES ADDED 1/8 TO 57 1/8 COUNTRYWIDE CREDIT LOST 2 1/4 TO 24 3/8 THE PASADENA CALIF MORTGAGE BANKING COMPANY HAD THIRDQUARTER EARNINGS OF 70 CENTS A SHARE UP FROM 68 CENTS A SHARE A YEAR EARLIER BUT BELOW THE 76 CENTS MEAN ESTIMATE OF ANALYSTS SURVEYED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM ARCHERDANIELSMIDLAND ROSE 1 1/4 TO 23 5/8 MERRILL LYNCH & CO ANALYST LEONARD TEITELBAUM SAID THE DECATUR ILL COMPANY SHOULD BENEFIT FROM A SMOGCONTROL PLAN THE ENVIRONMENTAL PROTECTION AGENCY IS EXPECTED TO UNVEIL IT WILL INCREASE THE USE OF ETHANOL OF WHICH ARCHER IS A MAJOR PRODUCER SCHOLASTIC RALLIED 1 3/4 TO 36 1/2 ON NASDAQ AFTER THE NEW YORK CHILDREN'S BOOK PUBLISHER REPORTED EARNINGS OF 143 A SHARE FOR THE SECONDQUARTER ENDED LAST MONTH UP FROM 135 A YEAR EARLIER GOLDMAN SACHS & CO INCREASED A RATING ON THE STOCK TO MODERATE OUTPERFORMER FROM MARKET PERFORMER BOEING RALLIED 1 5/8 TO 42 3/4 THE SEATTLE COMPANY RECEIVED ORDERS FOR ITS 777 JETLINERS FROM KOREAN AND BRAZILIAN AIRLINES THE KOREAN PACT THE LARGER OF THE TWO WAS VALUED BY BOEING AT ABOUT 15 BILLION FRUIT OF THE LOOM DROPPED 2 3/8 TO 27 7/8 PRUDENTIAL SECURITIES ANALYST DEBORAH BRONSTON TRIMMED HER ESTIMATES OF THE COMPANY'S 1993 AND 1994 EARNINGS SHE SAID SHE EXPECTS THE COMPANY'S PROFIT TO BE DEPRESSED BY MOVES TO REDUCE INVENTORIES MAXXAM DROPPED 2 5/8 TO 34 3/4 AND SHARES OF ITS MAJORITYOWNED KAISER ALUMINUM UNIT LOST 7/8 TO 8 3/4 KAISER REACHED AN AGREEMENT WITH THE UNITED STEELWORKERS OF AMERICA COVERING THE RESTRUCTURING OF ITS WORK FORCE AT A PLANT IN SPOKANE WASH THAT INCLUDES JOB CUTS DEFENSE STOCKS RALLIED AS INVESTORS FRETTED ABOUT THE PROSPECTS OF INCREASED TENSIONS WITH RUSSIA AFTER THE STRONG SHOWING BY THE EXTREME NATIONALIST LIBERAL DEMOCRATIC PARTY IN SUNDAY'S ELECTION RAYTHEON ROSE 2 1/4 TO 66 1/2 LITTON INDUSTRIES 3/4 TO 66 AND GENERAL DYNAMICS 5/8 TO 93 3/8 AFTER THE MARKET CLOSED RAYTHEON SAID IT IS TEAMING UP WITH ROCKWELL INTERNATIONAL FOR A SPACE CENTER PACT 9312160049 931216 DREXEL UNIVERSITY BUYS BUILDING PHILADELPHIA DREXEL UNIVERSITY SAID IT AGREED TO BUY PHILADELPHIA'S BULLETIN BUILDING COMPLEX FOR 76 MILLION AND PLANS TO LEASE IT THE 62ACRE COMPLEX ADJACENT TO DREXEL'S CAMPUS IS LOCATED ACROSS FROM AMTRAK'S 30TH STREET STATION IN PHILADELPHIA AND ORIGINALLY HOUSED THE EVENING BULLETIN A DAILY NEWSPAPER THAT CLOSED IN 1982 THE PROPERTY WAS PURCHASED AT A FEDERAL DEPOSIT INSURANCE CORP AUCTION IN BOSTON 9312160048 931216 BUSINESS BRIEF KAISER ALUMINUM CORP COMPANY SETS PACT TO CUT WORK FORCE 25 AT PLANT KAISER ALUMINUM CORP SAID IN HOUSTON THAT IT HAD REACHED AN AGREEMENT WITH THE UNITED STEELWORKERS UNION TO REDUCE THE 1300EMPLOYEE WORK FORCE AT ITS SPOKANE WASH FLATROLLED PRODUCTS PLANT ABOUT 25 UNDER THE AGREEMENT THE COMPANY AND THE UNION WILL APPOINT PLANNING COUNCILS TO REVIEW RESTRUCTURING PLANS FOR EACH OPERATING UNIT AND THE COMPANY HAS AGREED TO ACCOMPLISH AS MUCH OF THE WORK FORCE REDUCTION AS POSSIBLE THROUGH EARLY RETIREMENTS AND NORMAL ATTRITION KAISER SUFFERING FROM DEPRESSED ALUMINUM PRICES ANNOUNCED ON DEC 10 THAT IT EXPECTED TO TAKE AS MUCH AS 160 MILLION IN PRETAX CHARGES IN THE FOURTH QUARTER INCLUDING AS MUCH AS 40 MILLION PREVIOUSLY ANNOUNCED TO COVER RESTRUCTURING COSTS AT THE SPOKANE PLANT KAISER IS 67OWNED BY MAXXAM INC 9312160046 931216 CORRECTIONS & AMPLIFICATIONS REPS BOB MICHEL AND NEWT GINGRICH WROTE A LETTER TO US TRADE REPRESENTATIVE MICKEY KANTOR WARNING AGAINST CHANGES IN ANTIDUMPING RULES THAT WOULD HURT AMERICAN EXPORTERS IN AN ARTICLE YESTERDAY ABOUT THE PROSPECTS FOR PASSAGE OF THE WORLD TRADE AGREEMENT IN CONGRESS IT WAS INCORRECTLY REPORTED THAT THE TWO HOUSE MEMBERS WERE IN GENEVA LOBBYING FOR EASIER ANTIDUMPING RULES HOMES IN HEATHROW FLA HAVE BEEN PRICED AS HIGH AS 2 MILLION AN ARTICLE NOV 22 SAID THE PRICES WERE AS HIGH AS 10 MILLION THE HIGHER AMOUNT WAS A PROJECTION BY THE ORIGINAL DEVELOPER OF HEATHROW AMR CORP'S AMERICAN AIRLINES HAS DEVELOPED AN ELECTRONIC TICKET DELIVERY NETWORK THAT WILL ENABLE AIRLINES AND TRAVEL AGENTS TO PRINT OUT AIRLINE TICKETS IN REMOTE LOCATIONS AN ARTICLE YESTERDAY INCORRECTLY REPORTED THAT AMERICAN HAD DEVELOPED AN AUTOMATIC TELLERLIKE TICKET MACHINE FOR CONSUMERS THE AIRLINE SAID SUCH A PRINTER IS UNDER DEVELOPMENT BUT NOT PART OF THE NEW NETWORK OHIO EDISON CO EXPECTS A PROFIT FOR THE YEAR ENDING DEC 31 AN ARTICLE TUESDAY INCORRECTLY SAID THE COMPANY'S YEAR ENDS MARCH 31 SKOLNIKS INC'S STOCK TRADED ABOVE 20 A SHARE IN OCTOBER BEFORE A 3FOR2 STOCK SPLIT TOOK EFFECT DEC 8 AN ARTICLE YESTERDAY FAILED TO MENTION THE SPLIT INCORRECTLY INDICATING THAT THE SHARE PRICE HAD FALLEN SHARPLY SINCE OCTOBER 9312160045 931216 BUSINESS BRIEF USX CORP COMPANY TO PAY 95 MILLION IN NATURALGAS CONTRACT CASE USX CORP SAID IT WILL PAY 95 MILLION TO SETTLE CLAIMS BY ENERGY BUYERS SERVICE CORP THAT IT BREACHED A 10YEAR NATURALGAS SUPPLY CONTRACT USX ALSO MUST MAKE DEFERRED PAYMENTS OF AS MUCH AS 88 MILLION AS A RESULT OF THE SETTLEMENT THE OIL STEEL AND NATURALGAS COMPANY WILL RECORD A PRETAX CREDIT OF 13 MILLION IN THE FOURTH QUARTER USX HAD TAKEN A 117 MILLION CHARGE IN THE THIRD QUARTER WHICH IS NOW MORE THAN NECESSARY THE SETTLEMENT INVOLVES A 1983 CONTRACT UNDER WHICH USX'S US STEEL UNIT AGREED TO BUY NATURAL GAS FROM HOUSTONBASED ENERGY BUYERS BUT SOON AFTERWARD NATURALGAS PRICES FELL AND US STEEL STOPPED BUYING FROM THE COMPANY IN DECEMBER 1992 AN ARBITRATOR RULED THAT USX HAD TO PAY ENERGY BUYERS 117 MILLION PLUS INTEREST FOR LOST PROFITS ON THE CONTRACT 9312160044 931216 BUSINESS BRIEF GOULDS PUMPS INC PROFIT FOR QUARTER IS SEEN AFFECTED BY SHIPPING DELAYS GOULDS PUMPS INC SAID SHIPMENT DELAYS AND CONTINUED PRICE PRESSURES WILL HURT FOURTHQUARTER RESULTS AT THE SAME TIME RESULTS WILL BE AIDED BY TAX BENEFITS FROM A EUROPEAN RESTRUCTURING PROGRAM ACCORDING TO THE SENECA FALLS NY PUMP MAKER SEVERAL NONRECURRING CHARGES WILL ALSO BE RECORDED IN THE QUARTER INCLUDING CHARGES FOR SEVERANCE COSTS RELATING TO FOURTHQUARTER LAYOFFS AND THE ADOPTION OF A NEW ACCOUNTING STANDARD FOR POSTEMPLOYMENT BENEFITS BEFORE THE ACCOUNTING CHANGE PERSHARE EARNINGS WILL BE COMPARABLE WITH OR SLIGHTLY ABOVE THE 16 CENTS A SHARE FROM CONTINUING OPERATIONS POSTED IN THE YEAREARLIER QUARTER GOULDS SAID GOULDS SAID THE SHIPPING DELAYS WERE CAUSED BY THE INSTALLATION OF A NEW MANUFACTURING PROCESS IN ITS ENGINEEREDPRODUCTS UNIT 9312160043 931216 MARKETING BRIEF BET HOLDINGS INC CABLE TV OWNER PROFIT ROSE 31 IN FISCAL FIRST QUARTER CABLE TELEVISION PROGRAMMER AND MAGAZINE PUBLISHER BET HOLDINGS INC REPORTED A 31 GAIN IN FISCAL FIRSTQUARTER NET INCOME AIDED BY A SURGE IN REVENUE FROM ADVERTISING AND CABLE SUBSCRIBERS BET WHICH OWNS BLACK ENTERTAINMENT TELEVISION INC AND OPERATES THE BET CABLE NETWORK SAID NET FOR THE QUARTER ENDED OCT 31 ROSE TO 38 MILLION OR 18 CENTS A SHARE FROM 29 MILLION OR 14 CENTS A SHARE A YEAR EARLIER BET PRESIDENT AND CHIEF EXECUTIVE OFFICER ROBERT L JOHNSON SAID ADVERTISING AT THE CORE BUSINESS BET CABLE NETWORK BOOSTED ITS ADVERTISING REVENUE 32 AND SUBSCRIBER REVENUE 22 TOTAL REVENUE ROSE 37 TO 237 MILLION BET SAID LOSSES IN ITS MAGAZINE OPERATIONS NARROWED THE PUBLISHING UNIT HAD AN OPERATING LOSS OF 832000 COMPARED WITH 907000 A YEAR EARLIER 9312160042 931216 BUSINESS BRIEF WORTHINGTON FOODS INC FORECAST OF 4THPERIOD SALES IS CUT BACK ABOUT 2 MILLION WORTHINGTON FOODS INC CITING A SHIFT IN ITS PROMOTIONAL STRATEGY EXPECTS FOURTHQUARTER SALES TO BE ABOUT 2 MILLION LESS THAN PROJECTED AND SEES FULLYEAR SALES OF ABOUT 79 MILLION THE WORTHINGTON OHIO COMPANY ALSO SAID IT WILL REPORT LOWERTHANEXPECTED EARNINGS FOR THE FOURTH QUARTER AS A RESULT OF THE PROMOTIONAL SHIFT WORTHINGTON HAD EARNINGS OF 320000 OR SIX CENTS A SHARE ON SALES OF 21 MILLION A YEAR EARLIER IT HAD EARNINGS OF 28 MILLION OR 60 CENTS A SHARE ON SALES OF 76 MILLION FOR 1992 WORTHINGTON WHICH MAKES MEATLESS FOOD PRODUCTS AND EGG SUBSTITUTES ATTRIBUTED THE LOWER PROJECTIONS TO THE CANCELLATION OF ITS REGULAR FOURTHQUARTER PROMOTION ON MORNINGSTAR FARMS NONMEAT BREAKFAST LINKS PATTIES STRIPS AND GRILLERS THE COMPANY SAID IT INTENDS TO LAUNCH A NEW PROMOTIONAL PROGRAM EARLY IN 1994 WHICH WILL BE GEARED TOWARD THE CUSTOMER RATHER THAN THE RETAILER AS A RESULT OF THE CANCELLATION RETAILERS HAVE NOT BEEN FORWARDBUYING WORTHINGTON PRODUCTS AS THEY HAVE IN YEARS PAST THE COMPANY SAID 9312160041 931216 BUSINESS BRIEF PENNSYLVANIA ENTERPRISES INC RATE INCREASE IS APPROVED FOR GAS & WATER CO UNIT THE PENNSYLVANIA PUBLIC UTILITY COMMISSION APPROVED AN 119 MILLION WATERRATE INCREASE FOR THE PENNSYLVANIA GAS & WATER CO UNIT OF PENNSYLVANIA ENTERPRISES INC THE INCREASES TO BE PHASED IN OVER TWO YEARS AFFECT 44800 CUSTOMERS MOSTLY IN LUZERNE COUNTY UNDER THE NEW RATES THE MONTHLY BILL FOR A TYPICAL RESIDENTIAL CUSTOMER WILL RISE INITIALLY TO 2145 FROM 1268 AFTER ONE YEAR IT WILL INCREASE TO 29 PG&W OFFICIALS SAID THE INCREASE IS NEEDED TO COVER THE APPROXIMATELY 60 MILLION COST OF BUILDING WATERTREATMENT PLANTS REQUIRED TO MEET FEDERAL AND STATE SAFEDRINKINGWATER REGULATIONS THE COMPANY SAID RATES IN THE AREA HAVEN'T BEEN RAISED FOR 10 YEARS PENNSYLVANIA ENTERPRISES IS A WILKESBARRE PA HOLDING COMPANY WITH INTERESTS IN NATURALGAS AND WATER DISTRIBUTION 9312160040 931216 BUSINESS BRIEF DART GROUP CORP COSTS OF EXPANSION ARE CITED IN FISCAL THIRDQUARTER LOSS DART GROUP CORP LANDOVER MD REPORTED A FISCAL THIRDQUARTER LOSS REFLECTING ANTICIPATED COSTS RELATED TO THE ACCELERATED EXPANSION OF SUPERSTORE PROGRAMS IN TWO OF ITS RETAIL HOLDINGS AND STARTUP COSTS FOR A THIRD FOR THE QUARTER ENDED OCT 31 DART POSTED A NET LOSS OF 687000 OR 44 CENTS A SHARE VS NET INCOME OF 17 MILLION OR 93 CENTS A SHARE A YEAR EARLIER SALES ROSE 62 TO 3315 MILLION DART HAS BEEN EXPANDING ITS SUPERSTORE PROGRAMS IN TWO DISCOUNT RETAILERS CROWN BOOKS BOOKSTORES AND TRAK AUTO AUTO SUPPLY STORES IT ALSO HAS EXPANDED TOTAL BEVERAGE A STARTUP DISCOUNT WINE BEER AND BEVERAGE STORE IT OWNS THE RESULTS WERE PARTLY OFFSET BY IMPROVED EARNINGS OF SHOPPERS FOOD WAREHOUSE A DISCOUNT SUPERMARKET CHAIN DART HOLDS ABOUT 50 OF CROWN BOOKS CORP 65 OF TRAK AUTO CORP AND ABOUT 50 OF SHOPPERS FOOD 9312160039 931216 BUSINESS BRIEF PEPSICO INC PIZZA HUT PLANS TO ACQUIRE CHAIN OF ITALIAN RESTAURANTS PIZZA HUT INC SAID IT PLANS TO ACQUIRE EAST SIDE MARIO'S A CHAIN OF 38 ITALIAN RESTAURANTS FROM PRIME RESTAURANT GROUP IN TORONTO CANADA TERMS WEREN'T DISCLOSED PIZZA HUT A UNIT OF PEPSICO INC IN PURCHASE NY SAID THE PURCHASE IS PART OF THE COMPANY'S STRATEGY OF ENTERING THE GROWING CASUALDINING SEGMENT OF THE FOODSERVICE INDUSTRY EAST SIDE MARIO'S CURRENTLY HAS SIX RESTAURANTS IN THE US THE REMAINDER ARE IN CANADA WICHITA KANBASED PIZZA HUT SAID IT PLANS TO BEGIN OPENING ADDITIONAL SITES IN THE US IN 1994 EXPANSION IS ALSO PLANNED FOR OVERSEAS PIZZA HUT SAID EAST SIDE MARIO'S WILL BE HEADED BY MARK BROMBERG FORMER PRESIDENT OF PRIME RESTAURANT GROUP SHARES OF PEPSICO CLOSED AT 4075 UP 125 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9312160038 931216 BUSINESS BRIEF CENTRAL MAINE POWER CO UTILITY'S DIRECTORS APPROVE PLAN TO RESTRUCTURE COSTS CENTRAL MAINE POWER CO SAID ITS BOARD APPROVED A COSTRESTRUCTURING PLAN THAT INCLUDES CAPITAL AND OPERATING BUDGET CUTS AND A 42 CUT IN ITS QUARTERLY DIVIDEND THE UTILITY WHICH IS BASED IN AUGUSTA SAID ITS RESTRUCTURING WILL INCLUDE LAYOFFS AND THE POSSIBLE CLOSING OF FACILITIES DETAILS WILL BE ANNOUNCED IN EARLY JANUARY THE COMPANY SAID CENTRAL MAINE SAID THE CRITICAL FACTOR IN A REVIEW OF ITS OVERALL FINANCIAL SITUATION WAS THE MAINE PUBLIC UTILITIES COMMISSION'S DECISION IN NOVEMBER TO GRANT ONLY 26 MILLION OF A REQUESTED 83 MILLION RATE INCREASE A SPOKESMAN SAID THE WORKFORCE REDUCTIONS WOULD BE AT LEAST COMPARABLE TO A CUT OF 200 JOBS IN 1991 BUT THOSE WERE EARLY RETIREMENTS NOW WE ARE TALKING ABOUT LAYOFFS CENTRAL MAINE CUT THE DIVIDEND TO 225 CENTS A SHARE FROM 39 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CENTRAL MAINE SHARES FELL 50 CENTS TO 1525 9312160037 931216 BUSINESS BRIEF DUPONT CO VENTURE WITH RUSSIAN FIRM IS FORMED FOR CIS MARKET DUPONT CO SAID IT FORMED A JOINT VENTURE WITH KIROVOCHEPETSK CHEMICAL ENTERPRISES OF RUSSIA TO MARKET DUPONT'S FLUOROPOLYMER PRODUCTS IN THE CONFEDERATION OF INDEPENDENT STATES AND TO HELP THE RUSSIAN PARTNER EXPORT ONE OF ITS FLUOROPOLYMER PRODUCTS KIROVOCHEPETSK THE LARGEST PRODUCER OF FLUOROPOLYMERS AND REFRIGERANTS IN THE CIS IS ALSO A LARGE MANUFACTURER OF FERTILIZER IT IS BASED IN KIROVSKAYA OBLAST DUPONT BASED IN WILMINGTON DEL MARKETS FLUOROPOLYMER RESINS FINISHES FILMS AND FIBERS UNDER ITS TEFLON TRADEMARK SUCH PRODUCTS ARE USED IN AEROSPACE AND TELECOMMUNICATIONS GEAR IN COOKWARE AND IN STAINRESISTANT FINISHES FOR FABRICS LONGERRANGE PLANS FOR THE JOINT VENTURE INCLUDE MANUFACTURING DUPONT SAID 9312160035 931216 BUSINESS BRIEF CONRAIL INC VOLUNTARY RETIREMENT PLAN SET FOR NONUNION WORKERS CONRAIL INC PHILADELPHIA ANNOUNCED A VOLUNTARY EARLYRETIREMENT PROGRAM FOR ELIGIBLE MEMBERS OF ITS NONUNION WORK FORCE AND WILL ACCOUNT FOR THE COST OF THE PLAN IN THE FIRST QUARTER OF 1994 ABOUT 400 EMPLOYEES AGED 55 OR OLDER OR ABOUT 11 OF THE COMPANY'S NONUNION WORK FORCE ARE ELIGIBLE FOR THE PROGRAM AT CONRAIL WHICH OPERATES A RAIL FREIGHT NETWORK IN 14 NORTHEASTERN AND MIDWESTERN STATES AS WELL AS IN THE DISTRICT OF COLUMBIA AND QUEBEC CANADA THE COMPANY SAID IT EXPECTS THE PROGRAM TO BE COMPLETED BY MARCH 31 CONRAIL SAID THAT 90 OF THE COST WILL BE PAID FROM ITS OVERFUNDED PENSION PLAN AND THAT THE COST WON'T SIGNIFICANTLY AFFECT ITS CASH POSITION 9312160034 931216 CREDIT MARKETS BONDS OF DEVELOPING NATIONS CHINA AND BRAZIL ARE BENEFITING FROM LOW INTEREST RATES IN US BY THOMAS T VOGEL JR AND JACQUELINE DOHERTY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THERE WAS GOOD NEWS FOR BONDS OF TWO LARGE DEVELOPING NATIONS CHINA AND BRAZIL WITH INTEREST RATES LOW IN THE USTHE BENCHMARK 30YEAR US TREASURY BOND'S YIELD WAS 627 YESTERDAY DOWN FROM 628 ON TUESDAY THESE TWO NATIONS HAVE BEEN INCREASINGLY POPULAR PARKING PLACES FOR AMERICAN CASH IN THE US CORPORATE MARKET ATTENTION WAS FOCUSED ON A 250 MILLION PRIVATE OFFERING OF NONCALLABLE 10YEAR SENIOR NOTES BY GUANGDONG ENTERPRISES HOLDINGS LTD THE HONG KONGBASED DEVELOPMENT ARM OF CHINA'S GUANGDONG PROVINCE THE OFFERING WAS INCREASED IN SIZE BY 50 MILLION MEANWHILE CITICORP SAID YESTERDAY THAT CREDITORS HOLDING MORE THAN 96 OF THE LOAN PAPER ELIGIBLE FOR A DEBT RESTRUCTURING IN BRAZIL HAVE COMMITTED TO EXCHANGE THE PAPER FOR BONDS THE DEBT TO BE EXCHANGED INCLUDES ABOUT 35 BILLION IN PRINCIPAL AND 17 BILLION IN ARREARS OWED TO SOME 800 CREDITORS ACCORDING TO CITICORP SIGNATURES FOR AT LEAST 95 OF THE DEBT ARE REQUIRED TO ALLOW THE PACKAGE TO BE COMPLETED WITH THE SIGNING BRAZIL IS ONE STEP CLOSER TO PUTTING ITS MASSIVE DEBT PROBLEMS BEHIND BUT BRAZILIAN OFFICIALS STILL RESERVE THE RIGHT TO SCRAP THE TRANSACTION IF THE DART FAMILY OF SARASOTA FLA DOESN'T SIGN THE AGREEMENT THE DARTS WHO OWN THE PRIVATELY HELD FOAMCUP MAKER DART CONTAINER CORP OWN ABOUT 14 BILLION OF THE DEBT PAPER AND HAVE NOT SIGNED ON TO THE AGREEMENT ACCORDING TO CITICORP THE DARTS REFUSE TO SIGN BECAUSE THEY DON'T WANT TO EXCHANGE 35 OF THEIR HOLDINGS FOR SOCALLED DISCOUNT BONDS AS OTHER DEBTHOLDERS HAVE AGREED TO DO THE EXCHANGE OF DEBT PAPER FOR BONDS IS SCHEDULED TO TAKE PLACE APRIL 15 DEPENDING ON WHAT BRAZIL DECIDES TO DO ABOUT THE DART FAMILY BEFORE THAT DATE BRAZIL MUST SIGN A STANDBY AGREEMENT WITH THE INTERNATIONAL MONETARY FUND AN ELUSIVE GOAL THE IMF IS SENDING A MISSION TO BRASILIA IN JANUARY AND CITICORP VICE CHAIRMAN WILLIAM RHODES SAID HE IS CONFIDENT THE STANDBY ACCORD WILL BE FORTHCOMING MR RHODES WHO IS ALSO CHAIRMAN OF THE BANKSTEERING COMMITTEE FOR BRAZIL MADE THE ANNOUNCEMENT AT THE NATIONAL PRESS CLUB YESTERDAY THE AGREEMENT WOULD ALLOW OWNERS OF THE BRAZILIAN COMMERCIAL BANK DEBT PAPER TO EXCHANGE THE PAPER FOR SEVERAL TYPES OF BONDS SOME OF WHICH ARE COLLATERALIZED BY US TREASURY ZEROCOUPON BONDS THE DART FAMILY WANTS TO CONVERT ITS HOLDINGS INTO SOCALLED CAPITALIZATION BONDS WHICH ARE UNCOLLATERALIZED BUT ALLOW INVESTORS TO CONVERT THEIR DEBT AT FULL FACE VALUE BRAZIL ASKED THAT ALL CREDITORS CONVERT AT LEAST 35 OF THEIR HOLDINGS INTO DISCOUNT BONDS WHICH ARE COLLATERALIZED BUT ARE MADE FROM DEBT CONVERTED AT A DISCOUNT TO FACE VALUE THE OFFERING BY GUANGDONG ENTERPRISES WAS ONE OF A HANDFUL OF BONDS TO BE SOLD BY CHINESE ENTITIES THIS YEAR AFTER CHINA SOLD SECURITIES IN THE PUBLICDEBT MARKETS EARLIER THIS YEAR FOR THE FIRST TIME SINCE 1949 INVESTOR APPETITE FOR CHINESE BONDS HAS PICKED UP DRAMATICALLY SAY MARKET EXPERTS UNLIKE TWO OFFERINGS EARLIER THIS YEAR FROM CHINESE GOVERNMENT AGENCIES THE GUANGDONG NOTES SOLD YESTERDAY ARE NOT GUARANTEED BY THE CHINESE GOVERNMENT THE GUANGDONG OFFERING WAS THE FIRST FROM A CHINESE ENTITY IN THE US CORPORATEBOND MARKET WHICH IS NOT GUARANTEED BY THE CHINESE GOVERNMENT AS A RESULT THE YIELD IS SUBSTANTIALLY HIGHER RELATIVE TO US TREASURYS THE 10YEAR SENIOR NOTES WHICH WERE SOLD IN THE 144A PRIVATE PLACEMENT MARKET WERE PRICED AT 99676 TO YIELD 88 OR 30 PERCENTAGE POINTS MORE THAN 10YEAR US TREASURY NOTES THE YIELD GAP WAS AT THE HIGH END OF MARKET EXPECTATIONS BECAUSE THE COMPANY WANTED TO INCREASE THE SIZE OF THE DEAL ONE MARKET SOURCE SAID THE DEAL WAS BEING MARKETED AT 275 TO 30 PERCENTAGE POINTS OVER TREASURYS THE NOTES HAVE A SPLITRATING WHICH MEANS THAT ONE RATING AGENCY CONSIDERS THEM INVESTMENTGRADE AND ANOTHER CONSIDERS THEM JUNKGRADE MOODY'S INVESTORS SERVICE GAVE THEM A LOW INVESTMENTGRADE RATING OF BAA3 WHILE STANDARD & POOR'S RATED THEM DOUBLEB THE ISSUE WAS SOLD THROUGH MERRILL LYNCH HOWEVER GUANGDONG ENTERPRISES IS SO ECONOMICALLY IMPORTANT TO THE REGION THAT IT IS PROBABLE THAT THE REGIONAL GOVERNMENT WOULD SUPPORT GUANGDONG ENTERPRISES' DEBT IF NECESSARY ACCORDING TO JAMES SWANSON A PORTFOLIO MANAGER AT MASSACHUSETTS FINANCIAL SERVICES MR SWANSON SAID HE LIKED THE DEAL BECAUSE MOODY'S RAISED THE LONGTERM RATINGS OF BANK OF CHINA CHINA INTERNATIONAL TRUST AND INVESTMENT CORP AND PEOPLE'S CONSTRUCTION BANK OF CHINA TO SINGLEA3 FROM BAA1 ON MONDAY THAT MADE HIM MORE COMFORTABLE THAT GUANGDONG ENTERPRISE DEBT WOULD TRADE WELL IN THE AFTERMARKET HE EXPLAINED ONE INVESTOR BOUGHT SOME OF THE OFFERING IN PART BECAUSE OF AN EXPECTATION THAT GUANGDONG ENTERPRISES WILL FLOURISH ECONOMICALLY WHEN HONG KONG IS RETURNED TO CHINA BY BRITAIN IN 1997 THE GUANGDONG ENTERPRISES OFFERING WAS PRICED AT A SUBSTANTIAL PREMIUM TO THE OFFERINGS EARLIER THIS YEAR OF CHINA INTERNATIONAL TRUST AND INVESTMENT AND GUANGDONG INTERNATIONAL TRUST & INVESTMENT CORP CHINA INTERNATIONAL TRUST WAS PRICED WITH A 6875 COUPON OR ONE PERCENTAGE POINT OVER TREASURYS IN AUGUST THE DEBT NOW TRADES ABOUT 115 PERCENTAGE POINTS OVER TREASURYS A SYNDICATE OFFICIAL SAID CHINA INTERNATIONAL TRUST AND GUANGDONG INTERNATIONAL TRUST ARE CONSIDERED FEDERAL AND PROVINCIAL ENTITIES WITH A HIGHER GUARANTEE OF GOVERNMENT BACKING ADRIFT IN SLOW HOLIDAY DEALINGS PRICES OF US TREASURY NOTES AND BONDS ENDED YESTERDAY'S SESSION STEADY TO SLIGHTLY HIGHER THE BEST PERFORMANCE WAS PUT IN BY SHORTER MATURITIES WHILE LONGERTERM ISSUES LAGGED THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 1/8 POINT OR MORE THAN 125 FOR A BOND WITH A 1000 FACE VALUE TO 99 18/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO 627 FROM 628 ON TUESDAY THE PRICE OF THE 10YEAR NOTE ROSE JUST 1/32 TO 99 19/32 TO YIELD 579 ESSENTIALLY UNCHANGED THE BOND MARKET HAS BEEN CONFINED TO WELLESTABLISHED RANGES FOR SEVERAL WEEKS THE YIELD ON THE 30YEAR BOND FOR EXAMPLE HAS NOT GONE BELOW 610 OR ABOVE 640 SINCE THE FIRST WEEK OF NOVEMBER THE YIELD ON THE TWOYEAR NOTE MEANWHILE HAS BEEN CONFINED TO A RANGE OF 4 TO 425 DURING THAT PERIOD AND OVER THE LAST THREE WEEKS HAS HELD BETWEEN 412 AND 425 AT MIDAFTERNOON THE TREASURY ANNOUNCED IT PLANS TO SELL 17 BILLION IN TWOYEAR NOTES AND 11 BILLION IN FIVEYEAR NOTES NEXT WEEK THE OFFERING SIZES WERE IN LINE WITH WALL STREET EXPECTATIONS IN WHENISSUED TRADING LATE YESTERDAY THE TWOYEAR NOTE YIELDED 426 AND THE FIVEYEAR NOTE YIELDED 520 THE DECEMBER ISSUANCE FRENZY CONTINUED IN THE MUNICIPALBOND MARKET AND THERE WAS SOLID DEMAND FOR MUCH OF THE NEW SUPPLY TOTALING MORE THAN 2 BILLION IN SECONDARY DEALINGS ACTIVELY TRADED ISSUES WERE UNCHANGED TO 1/4 POINT LOWER AFTER A SESSION MARKED BY SCATTERED PROFITTAKING THE NEW YORK STATE POWER AUTHORITY'S 525 BONDS DUE 2018 WERE UNCHANGED AT 98 1/2 YIELDING 532 MARKET PARTICIPANTS HAVE HAD A PRETTY VORACIOUS APPETITE FOR MUNIS THE PAST FEW WEEKS BECAUSE OF EXPECTATIONS OF A SUPPLY SHORTAGE IN JANUARY WHEN THERE WILL BE HEAVY BOND CALLS AND REDEMPTIONS BECAUSE OF THE HEARTY BUYING INTEREST SEVERAL UNDERWRITING GROUPS WERE ABLE TO REPRICE THEIR OFFERINGS THIS SESSION TO RAISE PRICES AND LOWER YIELDS LOTS OF BUYERS ZEROED IN ON THE DAY'S LARGEST ISSUE THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY'S 7559 MILLION 1993 SERIES F REFUNDING BONDS THE MORGAN STANLEY BOND SYNDICATE FOR THE OFFERING WAS ABLE TO LOWER YIELDS FOR SEVERAL MATURITIES BY 50 BASIS POINTS BECAUSE OF STRONG INTEREST SO FAR THIS WEEK MORE THAN 3 BILLION OF OFFERINGS HAS BEEN PRICED LAST WEEK'S SUPPLY EXCEEDED 5 BILLION MORTGAGEBACKED SECURITIES ENDED STRONGER YESTERDAY ON MINIMAL VOLUME A SINGLE LATEINTHE DAY TRADE OF 700 MILLION 30YEAR 65S FOR INSTANCE WAS ABLE TO BOOST PRICES OF THE CURRENT COUPONS ACCORDING TO A TRADER THE SECURITIES WERE ENDING UP ABOUT 5/32 WHILE THE 10YEAR NOTE WAS ENDING UNCHANGED AT 99 20/32 FOR A YIELD OF 579 GINNIE MAE 65S FOR JANUARY DELIVERY WERE UP 4/32 AT 98/22 FREDDIE MAC GOLD 65S WERE UP 5/32 AT 98 29/32 AND FANNIE MAE 65S WERE UP 5/32 AT 98 24/32 IN THE ASSETBACKED MARKET PARTICIPANTS AWAITED GREEN TREE FINANCIAL CORP'S 725 MILLION OFFERING OF MANUFACTURED HOUSING CERTIFICATES VIA LEHMAN BROTHERS AS WELL AS SMALLER DEALS MEANWHILE ISSUANCE OF NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS CONTINUES TO BE SPARSE THE ONLY OFFERING ANNOUNCED WAS A 500 MILLION FEDERAL HOME LOAN MORTGAGE CORP OFFERING SERIES 19931660 BACKED BY 15YEAR 65 SECURITIES THE LACK OF NEW REMICS PARTICULARLY IN THE 30YEAR SECTOR HAS HELPED WIDEN THE YIELD DIFFERENTIAL BETWEEN CURRENTCOUPON SECURITIES AND THE TREASURY'S 10YEAR NOTE AT THE CLOSE THE YIELD OF A FANNIE MAE 65 SECURITY AT 67 WAS 91 BASIS POINTS ABOVE THE YIELD ON THE 10YEAR NOTE LAST WEEK THE YIELD SPREAD BETWEEN THE TWO SECURITIES RANGED BETWEEN 85 BASIS POINTS AND 93 BASIS POINTS 9312160033 931216 BUSINESS BRIEF ZOOM TELEPHONICS INC SALES FOR THE YEAR EXPECTED TO INCREASE MORE THAN 30 FRANK MANNING PRESIDENT OF ZOOM TELEPHONICS INC SAYS HE EXPECTS SALES FOR THE YEAR TO BE MORE THAN 30 HIGHER THAN LAST YEAR'S 419 MILLION MR MANNING SAID HE WAS COMFORTABLE WITH ANALYST'S ESTIMATES OF SALES OF 14 MILLION TO 17 MILLION FOR THE FOURTH QUARTER AND THAT THE COMPANY HAS OVERCOME SHIPPING PROBLEMS THAT PRODUCED DISAPPOINTING THIRDQUARTER RESULTS MR MANNING DECLINED TO DISCUSS EARNINGS FOR THE FOURTH QUARTER IN THE 1992 FOURTH QUARTER BOSTONBASED ZOOM REPORTED EARNINGS OF 1 MILLION OR 17 CENTS A SHARE ON SALES OF 122 MILLION MR MANNING SAID SALES FOR THE YEAR SHOULD BE IN THE MID50 MILLION RANGE BUT DECLINED TO BE MORE SPECIFIC ZOOM ALSO HOPES TO ANNOUNCE NEXT WEEK A CONTRACT WITH A NEW DISTRIBUTOR MARSHALL INDUSTRIES TO SELL A LINE OF MINIATURE MODEMS DESIGNED FOR ELECTRONIC EQUIPMENT INCLUDING CASH REGISTERS AND PAYROLL MACHINES MR MANNING SAID 9312160032 931216 BUSINESS BRIEF COOPER COS FINAL AGREEMENT IS REACHED ON DEBTRESTRUCTURING PLAN COOPER COS FORT LEE NJ SAID IT REACHED A FINAL AGREEMENT WITH REPRESENTATIVES OF DEBENTURE HOLDERS REGARDING A DEBTRESTRUCTURING PLAN THE MEDICAL PRODUCTS MAKER HAS INCREASED THE CASH PORTION OF AN OFFER TO SWAP AS MUCH AS 30 MILLION OF EXISTING 10625 DEBENTURES DUE 2005 FOR A NEW ISSUE OF 10 NOTES DUE 2003 COOPER IS OFFERING 725 FACE VALUE OF 10 NOTES AND 145 IN CASH UP FROM THE PREVIOUS 13750 IN CASH FOR EACH 1000 FACE AMOUNT OF THE OLD DEBT THE AGREEMENT IS REQUIRED AS PART OF A PREVIOUS SETTLEMENT OF LITIGATION BETWEEN COOPER AND A UNIT OF BRISTOLMYERS SQUIBB CO TO WHICH COOPER HAD SOLD A BREAST IMPLANT BUSINESS THAT SETTLEMENT WAS CONTINGENT ON COOPER'S COMPLETING A DEBT RESTRUCTURING PLAN BY FEB A SPOKESWOMAN SAID CERTAIN DEBTHOLDERS AGREED TO TENDER OVER 25 MILLION IN FACE VALUE OF THE DEBT A CONDITION FOR THE EXCHANGE OFFER TO BE COMPLETED 9312160031 931216 BUSINESS BRIEF BOMBARDIER INC MEXICAN GROUP TO NEGOTIATE CONTRACT FOR RAIL VENTURE BOMBARDIER INC SAID A GROUP OF MEXICAN COMPANIES ASSOCIATED WITH BOMBARDIER WAS CHOSEN TO NEGOTIATE THE CONCESSION TO BUILD AND OPERATE A RAIL TRANSIT SYSTEM LINKING MEXICO CITY'S CENTER TO ITS NORTHWESTERN SUBURBS BASED ON A 650 MILLION BID FOR THE PROJECT SUPPLY CONTRACTS ARE TO BE SIGNED ONCE TERMS OF THE CONCESSION HAVE BEEN NEGOTIATED BOMBARDIER A MONTREALBASED TRANSPORTATION EQUIPMENT MAKER ESTIMATED ITS SHARE OF THE CONTRACTS WOULD TOTAL 300 MILLION ITS MEXICAN UNIT BOMBARDIER CONCARRIL SA WOULD DESIGN AND SUPPLY LIGHTRAIL VEHICLES FOR THE 13MILE SYSTEM AND ITS UTDC SYSTEMS DIVISION IN ONTARIO WOULD SUPPLY RELATED EQUIPMENT AND SERVICES THE CONTRACT WOULD REPRESENT THE BIGGEST ORDER FOR CONCARRIL SINCE BOMBARDIER ACQUIRED THE UNIT LAST YEAR 9312160030 931216 BUSINESS BRIEF DEVELOPERS DIVERSIFIED REALTY CORP REALESTATE CONCERN BUYS THREE MALLS FOR 252 MILLION DEVELOPERS DIVERSIFIED REALTY CORP ACQUIRED THREE SHOPPING CENTERS FOR 252 MILLION AND TERMINATED AGREEMENTS TO BUY TWO OTHERS THE NEW MALLS TO BE PURCHASED IN WINCHESTER VA CONNERSVILLE IND AND CHEBOYGAN MICH HAVE AN AGGREGATE OF 533140 SQUARE FEET DEVELOPERS SAID IT WON'T BUY MALLS THAT IT PREVIOUSLY AGREED TO BUY IN ATLANTA AND PRESTONBURG KY BECAUSE OF ENVIRONMENTAL AND GEOTECHNICAL RISKS DISCOVERED DURING DUE DILIGENCE DEVELOPERS A CLEVELAND REALESTATE CONCERN SPECIALIZING IN SHOPPING AND BUSINESS CENTERS HAS NOW COMPLETED THE ACQUISITION OF 17 MALLS SINCE IT WENT PUBLIC IN FEBRUARY DEVELOPERS SHARES CLOSED UP 375 CENTS AT 2850 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9312160029 931216 BUSINESS BRIEF DIAMOND SHAMROCK INC PROFIT IS SEEN IN 4TH QUARTER AFTER YEAREARLIER LOSS DIAMOND SHAMROCK INC EXPECTS TO REPORT NET INCOME OF 15 CENTS TO 20 CENTS A SHARE FOR THE FOURTH QUARTER COMPARED WITH A LOSS A YEAR EARLIER SAID ROGER HEMMINGHAUS CHAIRMAN AND CHIEF EXECUTIVE IN AN INTERVIEW MR HEMMINGHAUS SAID THE SAN ANTONIO TEXASBASED PETROLEUM REFINER AND MARKETER EXPECTS TO REPORT UNDERLYING EARNINGS FROM OPERATIONS AT THE TOP END OF ANALYSTS' FORECASTS OF 25 CENTS TO 30 CENTS A SHARE UNDERLYING EARNINGS EXCLUDE ACCOUNTING CHANGES ONETIME ITEMS AND ANY CHANGES IN THE VALUATION OF DIAMOND'S CRUDEOIL AND PETROLEUMPRODUCT INVENTORIES THE COMPANY HAS EXPERIENCED A SIGNIFICANT DEVALUATION OF ITS PETROLEUM INVENTORIES THIS MONTH BECAUSE OF THE RAPID DROP IN CRUDEOIL AND PETROLEUMPRODUCT PRICES MR HEMMINGHAUS SAID IN THE 1992 FOURTH QUARTER DIAMOND HAD A LOSS OF 39 MILLION OR 14 CENTS A SHARE ON REVENUE OF 6666 MILLION MR HEMMINGHAUS SAID THE INCREASE IN EARNINGS COMES IN LARGE PART FROM STRONGER MARGINS AT ITS SERVICE STATIONS THIS WILL BE A RECORD YEAR FOR RETAIL HE SAID 9312160028 931216 BUSINESS BRIEF HF AHMANSON & CO CITICORP SUBSIDIARY BUYS UNIT'S CREDITCARD SERVICES HOME SAVINGS OF AMERICA SAID IT SOLD ITS 131 MILLION CREDITCARD PORTFOLIO TO CITICORP'S SOUTH DAKOTA CREDITCARD BUSINESS TERMS WEREN'T DISCLOSED HF AHMANSON & CO WHICH OWNS HOME SAVINGS SAID IT WOULD REALIZE A 33 MILLION GAIN FROM THE TRANSACTION IN THE FOURTH QUARTER IN THE 1992 FOURTH QUARTER HF AHMANSON REPORTED NET INCOME OF 155 MILLION OR 10 CENTS A SHARE UNDER TERMS OF THE PURCHASE HOME SAVINGS WILL CONTINUE TO OFFER CREDITCARD SERVICES TO ITS CUSTOMERS UNDER ITS OWN NAME BUT CITIBANK WILL OWN AND OPERATE THE CREDITCARD SERVICES CITIBANK HAS ABOUT 33 BILLION IN CREDITCARD RECEIVABLES HF AHMANSON & CO IRWINDALE CALIF HAS ABOUT 501 BILLION IN ASSETS 9312160027 931216 BUSINESS BRIEF BROOKE GROUP LTD HOLDING COMPANY COLLECTING DEPOSIT IN DISPUTED OFFERING BROOKE GROUP LTD SAID IT BEGAN COLLECTING A 35 MILLION COLLATERAL DEPOSIT THAT HAD BEEN ESTABLISHED AS PART OF A 1990 RIGHTS OFFERING THE MIAMIBASED HOLDING COMPANY SAID THE DELAWARE CHANCERY COURT DECLINED TO ISSUE A TEMPORARY RESTRAINING ORDER REQUESTED BY CERTAIN RIGHTS HOLDERS THAT WOULD HAVE PREVENTED THE COMPANY FROM RECEIVING THE DEPOSIT THE RIGHTS HOLDERS ARE SUING BROOKE GROUP CLAIMING THE DISTRIBUTION IN OCTOBER OF ITS SKYBOX INTERNATIONAL INC TRADINGCARD UNIT WAS FRAUDULENT BROOKE GROUP MAINTAINS THAT THE DISTRIBUTION WHICH DEFRAYED CERTAIN OBLIGATIONS TO THE RIGHTS HOLDERS WAS PROPERLY EXECUTED BROOKE GROUP WHICH OWNS LIGGETT GROUP A TOBACCO COMPANY SAID IT HAS RECEIVED 11 MILLION IN CASH FROM THE DEPOSIT AND EXPECTS TO RECEIVE THE REMAINING NONCASH DEPOSIT SHORTLY 9312160026 931216 BUSINESS BRIEF AMOCO CORP MALAYSIA GRANTS SUBSIDIARY LICENSE FOR CHEMICAL PLANT AMOCO CORP SAID A UNIT RECEIVED A MANUFACTURING LICENSE FROM THE MALAYSIAN GOVERNMENT TO BUILD A PLANT TO PRODUCE RAW MATERIAL FOR POLYESTER THE OIL COMPANY'S UNIT AMOCO CHEMICAL CO DIDN'T DISCLOSE CONSTRUCTION COSTS BUT SAID THE PLANT WOULD HAVE THE CAPACITY TO PRODUCE 500000 METRIC TONS A YEAR OF PURIFIED TEREPHTHALIC ACID OR PTA PTA IS USED TO MAKE POLYESTER FIBER FILM AND CONTAINER RESIN AND IS AMOCO CHEMICAL'S BIGGEST PRODUCT CHICAGOBASED AMOCO IS THE WORLD'S LARGEST PRODUCER OF PTA WITH ANNUAL CAPACITY OF TWO MILLION TONS SUBJECT TO THE APPROVAL OF THE AMOCO BOARD EARLY NEXT YEAR AMOCO CHEMICAL EXPECTS TO BEGIN CONSTRUCTION IN MID1994 AND HAVE THE PLANT IN COMMERCIAL PRODUCTION BY THE SECOND HALF OF 1996 9312160025 931216 WHAT'S NEWS BUSINESS AND FINANCE TRADE OFFICIALS FROM 117 NATIONS WRAPPED UP A TRADE PACT UNDER GATT THAT SLASHES TARIFFS AND CUTS SUBSIDIES GLOBALLY AFTER SEVEN YEARS OF TORTUOUS NEGOTIATIONS BUT NATIONS WILL STILL CONTINUE TO TRY TO WRANGLE BETTER DEALS FROM THEIR TRADING PARTNERS BEFORE THE PACT TAKES EFFECT JULY 1 1995 THE US BUSINESS COMMUNITY WAS RELIEVED THE TRADE PACT WAS COMPLETED BUT DOESN'T SEE IT CREATING A FLOOD OF NEW ECONOMIC ACTIVITY EXECUTIVES IN EUROPE ASIA AND LATIN AMERICA HOWEVER WERE LARGELY ENTHUSIASTIC UAL AND ITS TWO BIGGEST UNIONS HAVE NEGOTIATED A SWEETENED OFFER FOR THE LABOR GROUPS TO ACQUIRE A MAJORITY STAKE IN THE UNITED AIRLINES PARENT KODAK'S NEW CHAIRMAN WARNED THAT ANALYSTS' 1994 EARNINGS ESTIMATES ARE WELL ABOVE WHAT THE COMPANY WILL BE ABLE TO DELIVER SENDING THE STOCK DOWN 725 OR NEARLY 12 TO 5550 FISHER SAID COSTCUTTING ALONE WON'T IMPROVE THE COMPANY'S EARNINGS AND INSTEAD HE EMPHASIZED GROWTH THE DOW JONES INDUSTRIAL AVERAGE SLUMPED UNDER THE WEIGHT OF PLUNGING KODAK SHARES WITH THE AVERAGE FALLING 2571 POINTS TO 371692 BOND PRICES WERE FLAT TO MODERATELY HIGHER INDUSTRIAL PRODUCTION SHOT UP 09 LAST MONTH A SIGN THE SECTOR IS GATHERING STEAM AFTER A LONG SPELL OF INERTIA THE RISE WAS THE LARGEST IN A YEAR AND THE SIXTH CONSECUTIVE MONTHLY GAIN QVC URGED PARAMOUNT TO DITCH ITS PLANNED AUCTION AND INSTEAD SELL ITSELF THROUGH OPEN PUBLIC BIDDING EXPRESSING MISTRUST OF THE AUCTION PROCESS BUT PARAMOUNT QUICKLY INDICATED THAT CHANGES IN THE PLANS ARE UNLIKELY MUTUALFUND SHAREHOLDERS WOULD RECEIVE NEW MOREDETAILED INFORMATION IN FUND PROXY STATEMENTS UNDER RULE CHANGES PROPOSED BY THE SEC DONALD TRUMP WILL GET DESPERATELY NEEDED FINANCING FROM A REALESTATE INVESTMENT FIRM TO BUILD ON 75 ACRES IN MANHATTAN PROVIDED HIS LENDERS SELL THE MORTGAGE AT A BIG DISCOUNT MCDONNELL DOUGLAS WAS PUT ON HEAVY PROBATION BY TOP PENTAGON OFFICIALS WHO VOWED TO CANCEL THE DEFENSE CONTRACTOR'S C17 CARGO JET PROGRAM IF IT FAILS TO MEET DELIVERY SCHEDULES QUALITY GOALS AND COST TARGETS GM'S SATURN WILL TRIM OUTPUT AND LAUNCH A CUTRATE LEASE PROGRAM BOTH FIRSTS FOR THE AUTO MAKER MARTECH USA PLANS TO FILE FOR CHAPTER 11 BANKRUPTCY PROTECTION AS IT DOUBLED ITS LOSS ESTIMATE FOR THE LATEST FISCAL YEAR TO UP TO 33 MILLION BOEING RECEIVED ORDERS VALUED AT OVER 145 BILLION FOR 11 ADVANCED 777S FROM KOREAN AIR AND TRANSBRASIL MCI PLANS A CHARGE OF UP TO 150 MILLION TO CONSOLIDATE SOME UNITS AMID AN ESCALATING WAR WITH AT&T COMPUSA'S CHAIRMAN AND CEO RESIGNED UNEXPECTEDLY AMID APPARENT DISSATISFACTION WITH THE COMPUTERSUPERSTORE CHAIN'S PROFITABILITY US PETROLEUM IMPORTS ARE BEGINNING TO SURGE AS DEMAND RISES AND DOMESTIC PRODUCTION DECLINES IMPORTS OF CRUDE OIL AND PETROLEUM PRODUCTS JUMPED 11 FROM A YEAR EARLIER TWO BIG JAPANESE BANKS' CREDIT RATINGS WERE CUT BY MOODY'S IN WHAT ANALYSTS SAID IS A CONTINUING CREDIT DETERIORATION OF THE NATION'S BANKS GENERAL MILLS REPORTED A LOWERTHANPROJECTED EARNINGS GAIN FOR ITS SECOND QUARTER AND SAID FULLYEAR RESULTS WON'T MEET INITIAL GOALS THE CEREAL MAKER HINTED IT WOULD ENGAGE IN A PROMOTION WAR IF NEEDED TO BOOST SALES BONDS LEHMAN BROTHERS TREASURY INDEX 551438 UP 881 COMMODITIES OIL 1441 A BARREL OFF 11 CENTS DOW JONES FUTURES INDEX 13998 UP 085 SPOT INDEX 12480 OFF 006 DOLLAR 10985 YEN UP 050 17170 MARKS UP 00032 9312160024 931216 BUSINESS BRIEF EKCO GROUP INC FOURTHPERIOD CHARGE TO CUT 1993 PROFIT 33 CENTS A SHARE EKCO GROUP INC NASHUA NH SAID A RESTRUCTURING OF ITS OPERATIONS WOULD LEAD TO A FOURTHQUARTER PRETAX CHARGE OF 11 MILLION AND CUT 1993 EARNINGS ABOUT 33 CENTS A SHARE AFTER TAXES LAST YEAR THE CONSUMERPRODUCTS COMPANY EARNED 14 MILLION OR 75 CENTS A SHARE ON REVENUE OF 2066 MILLION IN LAST YEAR'S FOURTH QUARTER NET INCOME WAS 189 MILLION OR 40 CENTS A SHARE EKCO SAID THAT THE RESTRUCTURING WOULD CUT ITS WORK FORCE OF 1100 ABOUT 10 IT SAID THE COSTSAVING EFFECTS WILL BEGIN TO BE REFLECTED IN THE FIRST QUARTER IT SAID IT EXPECTS TO REALIZE SAVINGS OF 25 MILLION TO 3 MILLION BEGINNING IN 1994 THE RESTRUCTURING INCLUDES THE REORGANIZATION AND REDUCTION OF ADMINISTRATIVE STAFF CONSOLIDATION OF DISTRIBUTION AND INFORMATION SYSTEMS AND REDUCTIONS IN PRODUCTION AND FACILITIES COSTS EKCO PRODUCTS CARRY THE EKCO BAKER'S SECRET HAVAHART AND OTHER BRAND NAMES 9312160023 931216 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHINA AWARDED MORE LEASES FOR OIL EXPLORATION IN THE EAST CHINA SEA CONTINUING TO BRING IN FOREIGN TECHNOLOGY AND CAPITAL TO DEVELOP FIELDS CHINA IS THE WORLD'S FIFTHLARGEST OIL PRODUCER BUT COULD BECOME A NET IMPORTER OF CRUDE AS AN ECONOMIC BOOM FUELS ENERGY DEMAND CLUFF OIL CHINA LTD OF HONG KONG SECURED FIVE LEASES OR A THIRD OF THE TOTAL EXPLORATION AREA BEING OFFERED CLUFF IS OWNED 51 BY PRIMELINE PETROLEUM CORP AND 49 BY CLUFF OIL HONG KONG LTD TWO GROUPS LED BY TEXACO INC AND CHEVRON CORP ALSO GOT LEASES THE EAST CHINA SEA WHERE FEW WELLS HAVE BEEN DRILLED PRESENTS HIGH RISKS AND ITS POTENTIAL WON'T BE CLARIFIED UNTIL TESTS ARE COMPLETED IN MID1995 FOREIGN OIL COMPANIES HAVE PILED EAGERLY INTO CHINA BUT HAVE LITTLE TO SHOW FOR IT THE SOUTH CHINA SEA THE FIRST AREA OPENED TO FOREIGN COMPANIES IN THE 1980S HAS YIELDED SMALL FIELDS GEOLOGISTS CLAIM THAT THE TEXASSIZED TARIM BASIN IN XINJIANG PROVINCE COULD HAVE AS MUCH OIL AS SAUDI ARABIA BUT IF OIL IS FOUND THERE DEVELOPING THE REMOTE AREA WOULD BE DIFFICULT AND REQUIRE AN EXPENSIVE PIPELINE A PARIS APPEALS COURT UPHELD A RULING BARRING THE YVES SAINT LAURENT FASHION HOUSE FROM SELLING ITS CHAMPAGNE PERFUME IN FRANCE VINTNERS IN THE CHAMPAGNE REGION HAD ACCUSED YSL A UNIT OF FRENCH STATEOWNED ELF SANOFI OF EXPLOITING THEIR PRESTIGE A 1990 LAW FORBIDS THE NAME'S USE ON OTHER PRODUCTS BUT THE FRENCH BAN DOESN'T TAKE EFFECT UNTIL DEC 31 ALLOWING CHRISTMAS SALES OF THE FRAGRANCE ALREADY A MULTIMILLIONDOLLAR ITEM YSL THEN WILL CONTINUE SALES WITH CHAMPAGNE REMOVED BUT ELF SANOFI WILL SELL CHAMPAGNE ABROAD DESPITE SIMILAR SUITS IN BRITAIN AND GERMANY THAILAND'S SECURITIES AND EXCHANGE COMMISSION ENHANCING ITS GETTOUGH IMAGE SAID IT WOULD FINE A GROUP OF MOSTLY TAIWANESE INVESTORS FOR VIOLATING DISCLOSURE RULES THE RULING IMPOSING PENALTIES OF 400 A DAY ON EACH INVESTOR TO FORCE THE SALE OF THE GROUP'S SHARES IN A HEALTHCARE COMPANY SETS A PRECEDENT THAT COULD MAKE HOSTILE TAKEOVERS MORE DIFFICULT IN THAILAND THE INVESTORS AMASSED A STAKE EXCEEDING 40 WITHOUT NOTIFYING THE SEC AS REQUIRED WHEN A GROUP HOLDING REACHES 25 FORMED IN MAY 1992 THE SEC HAS TACKLED ILLEGAL AND UNETHICAL PRACTICES IRANIAN NEWSPAPERS LAMBASTED THE GOVERNMENT FOR ALLOWING ITS CURRENCY TO PLUNGE TO RECORD LOWS AMID DETERIORATING ECONOMIC CONDITIONS THE RIAL TRADED AT 2200 TO THE DOLLAR DOWN A THIRD IN RECENT WEEKS AND THE LOWEST VALUE SINCE THE CURRENCY WAS DEVALUED LAST SPRING AS PLUMMETING WORLD OIL PRICES ARE THREATENING IRAN'S ECONOMY NEWSPAPERS URGED MORE OPENNESS IN TRADE AND MONETARY POLICIES GOVERNMENT DEBT IS ESTIMATED AT 20 BILLION AND PUBLIC DISCONTENT IS MOUNTING OVER RISING PRICES AND UNEMPLOYMENT CHINA AND RUSSIA WILL BUILD THE FIRST BRIDGE ACROSS THEIR BORDER TO HELP INCREASE TRADE AND LOWER TRANSPORTATION COSTS RUSSIA WILL SUPPLY THE MATERIALS AND TECHNOLOGY FOR THE PONTOON BRIDGE ACROSS WHAT CHINA CALLS THE HEILONG RIVER AND RUSSIA THE AMUR RIVER LINKING MOHE AND GALINDA BORDER CLASHES AND DISPUTES ONCE COMMON WERE RESOLVED BY A 1991 TREATY SOUTH KOREA PLANS TO SLOW AN INFLUX OF FOREIGN MONEY TO STEM INFLATIONARY PRESSURE FOLLOWING THE LIBERALIZING OF FINANCIAL MARKETS STARTING NEXT YEAR THE GOVERNMENT MIGHT LEND SOME FOREIGN RESERVES AT A LOWER RATE TO DOMESTIC INSTITUTIONAL INVESTORS TO PLACE IN FOREIGN BONDS AND STOCKS IT PLANS TO ABOLISH LIMITS ON INSTITUTIONS' INVESTMENTS ABROAD CURBS ON DOMESTIC COMPANIES' FOREIGNCURRENCY HOLDINGS MAY BE EASED WHILE FOREIGN FUNDS GOING INTO KOREA MAY BE TAXED AT A RATE EQUALING THE DIFFERENCE BETWEEN FOREIGN AND DOMESTIC INTEREST RATES TURKEY'S PRIVATIZATION AGENCY HOPES TO RAISE 1 BILLION NEXT YEAR BY SELLING STAKES IN EIGHT BIG STATECONTROLLED COMPANIES THE ACCELERATED SELLOFFS ARE CONSIDERED ESSENTIAL FOR THE GOVERNMENT TO CUT ITS BUDGET DEFICIT AND INFLATION FINANCING DEFICITS OF THE INEFFICIENT AND OVERSTAFFED ENTERPRISES WILL COST TURKEY ABOUT 4 BILLION OR 3 OF GROSS NATIONAL PRODUCT THIS YEAR COMPANIES EARMARKED FOR PRIVATIZATION STARTING NEXT MONTH THROUGH GLOBAL PUBLIC OFFERINGS OR BLOCK SALES ARE ENGAGED IN OIL REFINING AND DISTRIBUTION PETROCHEMICALS BANKING IRON AND STEEL OUTPUT TIRE MAKING AND FOREST PRODUCTS IN THE FIRST EIGHT MONTHS STATE ASSET SALES TOTALED 3607 MILLION INDICATING THE 1993 TARGET OF 15 BILLION WON'T BE MET FROM 1986 THROUGH LAST AUGUST ONLY 17 BILLION WAS RAISED THROUGH SALES OF STATE ORGANIZATIONS COMPANIES TO BE SOLD OFF IN 1995 INCLUDE A HOTEL AND MARINA OPERATOR A TEXTILE FIRM A SHIPBUILDER A CARGO LINE AND A TOBACCO AND LIQUOR CONCERN VIETNAM IS ISSUING ITS FIRST TREASURY BONDS IN FOREIGN CURRENCIES THE LOWEST DENOMINATION IS 100 IN ONE OF THE BIGGEST DEMONSTRATIONS SINCE THE 1970S ABOUT 30000 SWEDISH LABOR UNION AND OPPOSITION PARTY MEMBERS RALLIED IN FRONT OF PARLIAMENT TO PROTEST RECORDHIGH UNEMPLOYMENT AND DEMAND THE OUSTER OF THE CONSERVATIVELED GOVERNMENT 9312160022 931216 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG AND NOW FOR SOMETHING COMPLETELY DIFFERENT THIS WEEK'S COLUMN ISN'T AN EXPLANATION OR A REVIEW OF COMPUTER HARDWARE OR SOFTWARE INSTEAD IT CONTAINS A BOOK REVIEW AND AN OBITUARY JUST LIKE YOUR HOMETOWN NEWSPAPER WHEN FOLKS SETTLE DOWN WITH THEIR FIRST COMPUTER OR WITH A NEW TYPE OR NEW GENERATION OF COMPUTER THEY INSTINCTIVELY GRAB FOR A BOOK TO TELL THEM WHAT TO DO COMPUTERS MAKE EVEN SMART PEOPLE FEEL DUMB SO THE COMPUTERBOOK SECTION OF EVERY BOOKSTORE GROANS WITH FAT COSTLY VOLUMES THAT PROMISE TO MAKE PEOPLE THE MASTERS OF THEIR MACHINES OF ALL THESE BOOKS THERE ARE A COUPLE I'D RECOMMEND FOR BEGINNERS FOR NEW OR PROSPECTIVE IBMCOMPATIBLE OWNERS THE CLASS OF THE FIELD IN MY VIEW IS A NEW VOLUME CALLED THE LITTLE PC BOOK BY VETERAN COMPUTER COLUMNIST LAWRENCE J MAGID THE 1795 GUIDE PUBLISHED BY LITTLE PEACHPIT PRESS OF BERKELEY CALIF BILLS ITSELF AS A GENTLE INTRODUCTION TO PCS AND THAT'S EXACTLY WHAT IT IS INSTEAD OF OVERWHELMING THE READER WITH EXPLANATIONS OF COMPLICATED COMMANDS AND THE LIKE MR MAGID TAKES A ROCKBOTTOMBASIC APPROACH EXPLAINING THE DIFFERENCE BETWEEN HARDWARE AND SOFTWARE BETWEEN APPLE MACINTOSH MODELS AND IBMCOMPATIBLES BETWEEN THE DOS OPERATING SYSTEM AND THE WINDOWS INTERFACE SOFTWARE THAT MAKES IT MORE FRIENDLY HE DOESN'T EVEN DISCUSS TURNING ON THE MACHINES TILL PAGE 88 THE LITTLE PC BOOK NEVER TALKS DOWN TO ITS READERS NEVER MAKES THEM FEEL STUPID OR INADEQUATE JUST BECAUSE THEY KNOW LITTLE ABOUT COMPUTERS THERE ARE COPIOUS TIPS ABOUT BUYING A COMPUTER WHICH PARTS OF THE THING DO WHAT WHICH SOFTWARE TO CHOOSE EVEN HOW TO PLUG IT INTO THE WALL AND HOW TO AVOID COMPUTERRELATED HEALTH PROBLEMS MR MAGID DOES EXPLAIN THE MAIN DOS AND WINDOWS COMMANDS BUT THESE ARE RELEGATED TO DIFFERENT COLORED COOKBOOK SECTIONS AT THE BACK OF THE VOLUME AND ARE ORGANIZED BY ENGLISHLANGUAGE TOPIC IE TO COPY A FLOPPY DISK FOR NEW OR PROSPECTIVE MACINTOSH OWNERS I RECOMMEND THE LITTLE MAC BOOK BY PROLIFIC COMPUTER WRITER ROBIN WILLIAMS ALSO FROM PEACHPIT THIS SLENDER 16 BOOK WHICH PRECEDED THE COMPANION PC VOLUME ISN'T ORGANIZED THE SAME WAY BUT IT'S JUST AS GENTLE AND HELPFUL MS WILLIAMS EVEN INCLUDES A CHAPTER CALLED SIMPLY TYPING AND ANOTHER THAT EXPLAINS IN ONE PLACE ALL THE LITTLE VISUAL CUES THAT THE MACINTOSH USES THESE AREN'T THE ONLY GOOD BOOKS FOR NOVICES OF COURSE THE BESTSELLING SUCH VOLUMES ARE KNOWN COLLECTIVELY AS THE DUMMIES BOOKS AND ARE PUBLISHED BY IDG BOOKS WORLDWIDE SAN MATEO CALIF THEY INCLUDE PC FOR DUMMIES BY DAN GOOKIN AND ANDY RATHBONE MACS FOR DUMMIES BY DAVID POGUE AND DOS FOR DUMMIES ALSO BY MR GOOKIN I HATE THE TITLES WHICH I BELIEVE PLAY ON THE LOW SELFESTEEM AND FEELINGS OF INADEQUACY THAT COMPUTERS ENGENDER BUT THE TEXT IS CLEAR FUNNY AND IRREVERENT AND YOU WON'T GO WRONG BUYING THEM PCS FOR DUMMIES IS MORE FOCUSED ON EXPLAINING TECHNICAL THINGS AND LESS ON MAKING PRACTICAL BRANDNAME PRODUCT RECOMMENDATIONS THAN IS THE LITTLE PC BOOK MR MAGID EVEN RECOMMENDS OTHER BOOKS YOU CAN BUY THAT KIND OF HARDHEADED NONTECHNICAL CONTENT IS ONE REASON I PREFER THE LITTLE PC BOOK OBITUARY APPLE COMPUTER LAST MONTH QUIETLY STOPPED SELLING THE VENERABLE APPLE II COMPUTER ONE OF THE MOST IMPORTANT HIGHTECH INVENTIONS OF ALL TIME EVEN THE COMPANIES THAT MADE THE HARDWARE AND SOFTWARE THAT ECLIPSED IT THE IBM PC AND MICROSOFT'S DOS OPERATING SYSTEM OWED SOMETHING TO THE APPLE II MICROSOFT IN ITS EARLY DAYS WROTE A VERSION OF THE BASIC PROGRAMMING LANGUAGE FOR THE APPLE II AND ONE OF ITS FIRST HIT PRODUCTS WAS AN ADDIN CIRCUIT BOARD FOR THE APPLE ACCORDING TO THE NEW HISTORY OF IBM BIG BLUES ONE OF THE FIRST ACTS OF THE IBM TEAM THAT DESIGNED THAT COMPANY'S PC WAS TO BUY SOME APPLE IIS TO PREPARE BUDGETS AND PRESENTATIONS EVEN WHILE THE LITTLE MACHINE WAS BEING PUBLICLY AND PRIVATELY REVILED BY TOP IBM OFFICIALS MORE THAN FIVE MILLION APPLE IIS WERE SOLD I BOUGHT ONE OF THEM IN 1983 AND IT OPENED WHOLE NEW VISTAS TO ME THIS NEWSPAPER USED ONE TO PERFORM SOME OF THE EARLIEST ANALYSES OF THE IMPACT OF POLITICAL CONTRIBUTIONS ON CONGRESSIONAL VOTING PATTERNS AND ALSO COMPOSED HEADLINES ON AN APPLE II STILL ANOTHER APPLE II WAS REPORTED TO HAVE BEEN INSTALLED IN THE SPECIAL FLYING COMMAND POST THE PRESIDENT WAS TO USE IN CASE OF NUCLEAR WAR APPLE STOPPED BRINGING OUT NEW APPLE II MODELS YEARS AGO AND DECIDED TO CONCENTRATE ON THE SEXIER MACINTOSH COMPUTER FEW APPLE IIS HAVE SOLD IN RECENT YEARS AND LITTLE APPLE II SOFTWARE HAS BEEN WRITTEN BUT THE APPLE II'S PASSING SHOULD BE NOTED BECAUSE IT HELPED CHANGE THE WORLD 9312160021 931216 HEARD ON THE STREET CHRISTMAS MUST BE NEAR ALL IS QUIET AT TOYS R' US BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL TOYS R US IS UNDERGOING AN ANNUAL RITE THAT MAKES IT ONE OF WALL STREET'S MOST TANTALIZING AND OCCASIONALLY INFURIATING STOCKS THE TOY RETAILER HAS A HISTORY OF SHOWING A STOCKPRICE SWING UP OR DOWN EVERY YEAR IN EARLY JANUARY WHICH WAY THE STREET WOULD LOVE TO KNOW YET THE COMPANY TORTURES ANALYSTS EVERY YEAR BY ADAMANTLY REFUSING TO TALK ABOUT HOLIDAY SALES BETWEEN THANKSGIVING AND CHRISTMAS THIS YEAR HOWEVER SOME MARKET PROS ARE BETTING THAT THE SALES NEWS WILL BE GOOD AND THE STOCK'S PRICE WILL SURGE THE ANNUAL VOW OF SILENCE BEGINS IN NOVEMBER WHEN THE COMPANY POSTS FISCALTHIRDQUARTER RESULTS IT RUNS THROUGH EARLY JANUARY WHEN INVESTORS GET THE BREATHLESSLY AWAITED REPORT ON THE CHRISTMAS SALES THAT ACCOUNT FOR AS MUCH AS 70 OF TOYS R' US'S PROFIT IT HAS BEEN A PROFITABLE GUESSING GAME IN THE PAST FOUR YEARS THE STOCK HAS AVERAGED A 102 MOVE UP OR DOWN IN THE WEEK THROUGH JANUARY'S FIRST FRIDAY INVESTORS AND ANALYSTS GO TO GREAT LENGTHS FOR ANY HINT OR SNIPPET OF INFORMATION THAT WILL GIVE THEM AN EDGE IN FIGURING OUT HOW SALES ARE GOING IN DECEMBER ONE FAVORITE PASTIME OF ANALYSTS IS TO CALL UP MICHAEL GOLDSTEIN CHIEF FINANCIAL OFFICER ASK BLAND QUESTIONS AND TRY TO INTERPRET HIS MOOD AND TONE OF VOICE THOUGH THEY CANNOT HOPE FOR ANY REAL INFORMATION IT'S A PRETTY SHALLOW GAME SAYS SEAN MCGOWAN A RETAILING ANALYST AT GERARD KLAUER MATTISON & CO BUT HEY IT'S WHAT WE DO OTHER ANALYSTS HIT THE MALLS AND TALK TO COMPETITORS FOR A GAUGE ON WHAT'S HAPPENING IN THE AISLES OF TOYS R US EVEN THOUGH MANAGEMENT IS REFUSING TO HELP OUT INVESTORS SOME BIG PLAYERS SAY THEY DELIGHT IN THE QUIET PERIOD FOR A VARIETY OF REASONS MANY SAY IT MAKES THE STOCK MORE VOLATILE AFTER SALES ARE REPORTED AND THE OPPORTUNITY FOR HOME RUNS THAT MUCH GREATER I LIKE BLACKOUT PERIODS MYSELF SAYS TODD JAMES WHO FOLLOWS THE COMPANY AT CAPITAL GUARDIAN RESEARCH IN LOS ANGELES IT KEEPS OUT THE HEDGE FUNDS PRIVATE PARTNERSHIPS THAT OFTEN ROOT AROUND FOR PRECISE INFORMATION AND MAKE QUICK TRADES IN A STOCK TOYS R US'S POLICY IS A FAR CRY FROM THAT OF MOST RETAILERS MANY DOLE OUT GUIDANCE TO WALL STREET SO FREELY IN DECEMBER THAT THEIR CHRISTMASSALES REPORTS IN JANUARY ARE A BIG YAWN FOR THE ANALYSTS WHO FOLLOW THE STOCKS AS A RESULT MANY RETAILERS' STOCKS REFLECT THE APPROACHING GOOD OR BAD NEWS ON CHRISTMAS SALES WEEKS IN ADVANCE BUT SOME ANALYSTS SAY TOYS R US'S POLICY OF STAYING SILENT LEVELS THE PLAYING FIELD FOR ALL INVESTORS AND PRESENTS AN OPPORTUNITY FOR INVESTORS WILLING TO MAKE A BET ON WHETHER CHRISTMAS SALES WILL BE WEAK OR STRONG THIS YEAR SAY THE PROS THE RIGHT BET IS A BULLISH ONE AND THE STOCK LOOKS PRIMED TO JUMP EVEN HIGHER PERCENTAGEWISE THAN IN PAST YEARS THAT'S BECAUSE THE TOY RETAILER'S FOURTHQUARTER SALES FIGURES WILL INCLUDE A BIG BOOST IN NOVEMBER VOLUME FROM A MAILING THIS FALL OF A 70PLUS PAGE CATALOG TO 52 MILLION HOMES IN THE DAYS BEFORE ITS QUIET PERIOD BEGAN THE COMPANY HINTED THAT THE CATALOG WHICH INCLUDED COUPONS VALUED AT A TOTAL OF 490 BOOSTED NOVEMBER SAMESTORE SALES 30 OR MORE ABOVE LAST YEAR'S FIGURES EVEN IF TOYS R US HAS A LOUSY CHRISTMAS WHICH IS UNLIKELY SAYS MR MCGOWAN AT GERARD KLAUER THE COMPANY IS LIKELY TO DELIVER A POSITIVE SURPRISE TO INVESTORS IN JANUARY BUT IF THE RETAILER HAS STRONG DECEMBER SALES HE SAYS THE STOCK COULD WELL BREAK LOOSE OF ITS 3541 TRADING RANGE AND KEEP HEADING UP FUELED BY STRONG INTERNATIONAL GROWTH AND NEW DESIGNS FOR STORES IN THE US TOYS R US CLOSED AT 39 1/4 UP 3/8 YESTERDAY PEOPLE THOUGHT WALMART STORES WOULD HURT TOYS R US THIS SEASON BUT WALMART IS ACTUALLY LOSING SALES TO TOYS R US SAYS MR MCGOWAN DESCRIBING A FEAR THAT HAS DEPRESSED THE TOY RETAILER'S STOCK ALL YEAR IN YEARS PAST THE RIGHT BET PAID OFF HANDSOMELY FOR INVESTORS WHO EITHER BOUGHT THE STOCK IF THEY THOUGHT SALES WOULD BE STRONG OR SOLD THE STOCK SHORT IF THEY THOUGHT IT WOULD FALL A SHORTSELLER SELLS BORROWED STOCK HOPING THE PRICE WILL FALL AND CHEAPER SHARES CAN BE RETURNED TO THE LENDER DURING THE PAST FOUR YEARS IN THE FIRST WEEK OF JANUARY THE STOCK FELL ONLY ONCELAST JANUARY IT JUMPED 141 IN EARLY JANUARY 1992 ROSE 86 IN THE 1991 WEEK AND CLIMBED 115 IN THE 1990 PERIOD BARRY ROTHBERG AN ANALYST WITH FURMAN SELZ SAYS HE TRIES TO IGNORE THE HUBBUB SURROUNDING THE STOCK AT YEAR END YOU CAN TRY TO GET REALLY CUTE AND PEOPLE DO HE SAYS BUT THE TRUTH HE SAYS IS THAT IT'S A GOOD COMPANY AND YOU JUST NEED TO OWN THE STOCK INVESTMENT PROS SAY THE POTENTIAL FOR A QUICK JUMP IN THE COMPANY'S STOCK PRICE IN JANUARY IS THE MOST TEMPTING BUT NOT THE ONLY REASON TO BUY THE SHARES WORRIES ABOUT THE EFFECT OF DISCOUNT STORES ON TOYS R US'S HIGHFLYING GROWTH HAVE PROVED TO BE LARGELY UNFOUNDED SAYS GERARD KLAUER'S MR MCGOWAN AND HE SAYS TOYS R US HAS SHOWED THAT IT IS WILLING TO FIGHT BACK WITH PROMOTIONS LIKE ITS CATALOG A SHOT ACROSS THE BOW OF COMPETITOR WALMART STORES FORD'S FANS THINK FORD MOTOR CO'S STOCK COULD GET A BOOST FROM A STRONG FOURTH QUARTER BOLSTERED BY COST CUTS THIS WEEK INVESTORS HAVE BEEN CHATTERING ABOUT THE CHANCE OF A MUCH BETTERTHANEXPECTED FOURTH QUARTER AT FORD WHOSE STOCK IS UP ABOUT 50 ALREADY THIS YEAR PROSPECTS CONTINUE TO IMPROVE FOR THE AUTO MAKER HOWEVER BECAUSE OF EXPECTATIONS THAT THE COMPANY WILL REDUCE COSTS MAINLY MARKETING EXPENSES BY AS MUCH AS 300 MILLION DURING THE FOURTH QUARTER ACCORDING TO WENDY BEALE NEEDHAM AN ANALYST AT SMITH BARNEY SHEARSON WHO RECENTLY JOINED THE HOST OF ANALYSTS WHO HAVE BEEN RECOMMENDING THE STOCK IN RECENT MONTHS MS NEEDHAM SAYS SHE THINKS THE COST SAVINGS WILL BOOST QUARTERLY PERSHARE EARNINGS TO 113 COMPARED WITH HER EARLIER ESTIMATE OF 79 CENTS THE CONSENSUS AMONG ANALYSTS IS BETWEEN 110 AND 120 ONE INVESTOR THINKS THE NUMBER WILL BE CLOSER TO 140 9312160019 931216 WORLD TRADE TALKS THE WORLD TRADE PICTURE KENNEDY ROUND 196467 NAMED FOR PRESIDENT JOHN F KENNEDY WHO HAD URGED THE MAJOR INDUSTRIAL COUNTRIES TO UNDERTAKE THE NEGOTIATIONS KEY RESULTS INCLUDED AN AVERAGE REDUCTION OF ABOUT 35 IN TARIFFS ON MANUFACTURED GOODS THE INTRODUCTION OF RULES AGAINST DUMPING TOKYO ROUND 197379 THESE TALKS YIELDED FURTHER REDUCTIONS IN TARIFFS ON INDUSTRIAL GOODS AND MADE IT HARDER FOR COUNTRIES TO USE LICENSES CUSTOMS RULES AND TECHNICAL STANDARDS TO KEEP IMPORTS OUT URUGUAY ROUND 198693 LIKE PAST AGREEMENTS THE LATEST ACCORD IS INTENDED TO CUT TARIFFS ON A WIDE VARIETY OF GOODS INCLUDING FOR THE FIRST TIME A WIDE ARRAY OF AGRICULTURAL PRODUCTS THE PACT ALSO INCLUDES PROTECTIONS FOR PATENTS AND COPYRIGHTS IN ADDITION THE AGREEMENT CALLS FOR THE CREATION OF A NEW AND IN SOME WAYS MORE POWERFUL MULTILATERAL TRADE ORGANIZATION TO REPLACE GATT 9312160018 931216 ENTERPRISE NEW FORM SEEKS MORE DATA FROM BUSINESS BORROWERS BANKS MAY REQUIRE ADDITIONAL INFORMATION TO HELP CUT NUMBER OF BAD LOANS BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL MANY BANKERS WILL SOON DEMAND MORE CREDIT INFORMATION FROM PROSPECTIVE BUSINESS BORROWERS A STEP THAT COULD BE A BIG HEADACHE FOR ENTREPRENEURS SMALLBUSINESS OWNERS TYPICALLY PREFER TO SUPPLY MINIMAL DETAILS ABOUT THEIR COMPANIES WHEN THEY APPLY FOR BANK LOANS BANKERS HAVE LONG HAD TO ACCEPT INCOMETAX RETURNS OR SCANTY FINANCIAL DATA COMPILED FOR OPERATING PURPOSES NOW THAT PICTURE IS ABOUT TO CHANGE AS BANKS TRY TO CURB THE SOARING NUMBER OF BAD BUSINESS LOANS THE PRIVATE COMPANIES PRACTICE SECTION OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS HAS HELPED TO DEVISE A UNIFORM AND HIGHLY DETAILED FORM CALLED THE BUSINESS CREDIT INFORMATION PACKAGE OR BCIP BY MID1994 ACCOUNTANTS SAY MANY SMALLBUSINESS BORROWERS WILL FIND THEY MUST COMPLETE THE 20PAGE BCIP AT BANKS USING THE FORM SINCE SEPTEMBER WE'VE ALREADY DISTRIBUTED CLOSE TO 30000 COPIES OF THE BCIP TO HUNDREDS OF BANKS MAINLY FOR THEIR SMALLBUSINESS BORROWERS SAYS CHARLES HUNTINGTON DIRECTOR OF CREDIT POLICY FOR ROBERT MORRIS ASSOCIATES IN PHILADELPHIA THE TRADE GROUP OF 15000 BANKLOAN AND CREDIT OFFICERS HELPED DRAFT THE NEW FORM WHICH IT SAYS SHOULD SHORTEN THE LOANAPPLICATION PROCESS THE FORM SOLICITS CREDIT INFORMATION THAT SMALL BUSINESSES HAVE RARELY SUPPLIED BEFORE IT INCLUDES THE COMPANY'S FIVE BIGGEST CUSTOMERS AND SUPPLIERS CREDIT TERMS FOR EACH AND PERCENTAGE OF SALES OR CREDIT LIMIT FOR EACH IT ALSO REQUESTS OWNERSHIP SUCCESSION PLANS AND EXCRUCIATING DETAIL ON ACCOUNTING POLICIES SUCH AS HOW A COMPANY TAKES INVENTORY AND HOW IT MAY BORROW FROM ITS OWNERS THAT'S NOT ALL IN ADDITION THE FORM ASKS A WOULDBE BORROWER TO GIVE A DETAILED DESCRIPTION OF THE COMPANY'S PRODUCTS SERVICES MARKETS AND OPERATIONAL METHODS IT REQUESTS DISCLOSURE OF SIGNIFICANT CHANGES IN EARNINGS AND FINANCIAL CONDITIONS OVER THE PAST THREE YEARS AND REASONS THE CHANGES OCCURRED THE FORM ALSO SEEKS INFORMATION ABOUT EXAMINATIONS BY TAX AUTHORITIES LITIGATION AGAINST THE COMPANY AND INSURANCE COVERAGE THESE NEW FORMS COULD BE CREATING A MONSTER WARNS DAVID ANDERSON PRESIDENT OF MIDWEST ELECTRONICS INC A SMALL MANUFACTURER IN SHAWNEE MISSION KAN THE BCIP DEFINITELY CREATES AN OVERHEAD REQUIREMENT AND EMPLOYMENT OF MUCH MORE PROFESSIONAL AND ACCOUNTING PEOPLE THAN MOST SMALLBUSINESS ORGANIZATIONS HAVE HE MAINTAINS THOUGH MR ANDERSON IS UNHAPPY ABOUT THE NEW FORM THE EXECUTIVE SAYS HIS BUSINESS WILL BE ABLE TO HANDLE THE EXTRA PAPERWORK WITHOUT HIRING ADDITIONAL STAFF CHASE WILSON PRESIDENT OF SCOTWOOD INDUSTRIES INC A KANSAS CITY KAN INDUSTRIAL CHEMICAL DISTRIBUTOR WITH ANNUAL REVENUE OF 7 MILLION SAYS THE NEW FORM WOULD HAVE UPSET HIS LATE FATHER THE ELDER CHASE C WILSON STARTED THE BUSINESS WITH HIS SON IN 1980 AND DIED LAST YEAR AT AGE 72 HE WAS FROM THE OLD SCHOOL AND FELT THAT LINE OF SUCCESSION AND DATA ON WHERE THE OWNERS DERIVE THEIR INCOME WERE HIS OWN BUSINESS THE SON SAYS STILL THE YOUNGER MR WILSON RECOGNIZES THAT FINANCIAL INSTITUTIONS WANT MORE INFORMATION AND WE ARE PREPARED TO GIVE IT TO THEM NORMA MCCLOUD SCOTWOOD'S CONTROLLER SAYS IT CURRENTLY TAKES ABOUT A DAY FOR THE COMPANY TO PREPARE AN AVERAGE LOAN APPLICATION MR WILSON SAYS THE BCIP WOULD CONSUME AS MUCH AS SIX HOURS MORE BANKERS SAY THE BCIP IS SIMILAR TO A COMPILATION BUT WITH ADDED DISCLOSURE DEMANDS SOME BANKS EXPECT SMALLBUSINESS OWNERS WILL STRENUOUSLY RESIST TELLING MORE ON THE NEW FORM BECAUSE MOST LACK UNIFORM FINANCIAL REPORTING SYSTEMS BG HORNER SENIOR VICE PRESIDENT OF BROADWAY NATIONAL BANK WHICH HAS FIVE BRANCHES IN SAN ANTONIO PREDICTS THAT MANY SMALL BUSINESSES WILL BE RELUCTANT TO SPEND TIME OR MONEY TO COMPLETE THE DETAILED BCIP HE ADDS IT WOULD BE DIFFICULT TO COMPLETE WITHOUT THE HELP OF AN OUTSIDE ACCOUNTANT MOST SMALL BUSINESSMEN TRYING TO CUT COSTS WANT TO SIMPLIFY THE BORROWING PROCESS AND WOULDN'T BE INCLINED TO SPEND THE EXTRA MONEY STILL BROADWAY NATIONAL HAS OBTAINED 100 BCIP FORMS FROM ROBERT MORRIS AND PLANS TO INTRODUCE THEM TO LOCAL BANKLENDING OFFICERS AND PROSPECTIVE BORROWERS OVER THE NEXT FEW MONTHS WE'RE VERY HOPEFUL THAT WE CAN PHASE IN THE BCIP OR SOME FORM OF IT AND CAN CONVINCE SMALL BUSINESSES THAT IT WILL SPEED THE LENDING PROCESS AND HELP THEM GET THEIR FINANCIAL HOUSE IN ORDER SAYS ELIZABETH A MEAD VICE PRESIDENTLOAN REVIEW AT BROADWAY NATIONAL SIMILARLY SOUTHERN NATIONAL CORP PLANS TO USE THE BCIP BEGINNING NEXT YEAR FOR BUSINESSES THAT BORROW BETWEEN 100000 AND 500000 REPORTS MICHAEL W SPERRY EXECUTIVE VICE PRESIDENT AND CHIEF CREDIT OFFICER FOR THE WINSTONSALEM NC BANKHOLDING COMPANY THE COMPANY HAS 160 BRANCHES SMALL BUSINESSES HESITANT ABOUT FILLING OUT THE BCIP FOR EAGLE NATIONAL BANK IN MIAMI SIMPLY WON'T QUALIFY FOR A LOAN SAYS EDWARD URIBE CHIEF LENDING OFFICER FOR THE FIVEBRANCH BANK EAGLE NATIONAL WHICH ORDERED 150 BCIP FORMS FROM ROBERT MORRIS PLANS TO USE THEM SOON MIAMI IS A VERY TRANSIENT AREA FOR BUSINESS AND BANKS HAVE TO BE ESPECIALLY CAREFUL TO WHOM THEY LEND MONEY MR URIBE EXPLAINS WE FEEL THE BCIP REALLY FILLS THE BILL AS FAR AS OUR BANK IS CONCERNED WE'LL BE TELLING BORROWERS THEY'LL HAVE TO MEASURE THE INCONVENIENCE OF FILLING IT OUT WITH THE NEED FOR FUNDS 9312160017 931216 BUSINESS BRIEF MICHAEL FOODS INC STOPPAGE OF EGG PRODUCT LEADS TO 23 MILLION CHARGE MICHAEL FOODS INC ABANDONING ITS COMMERCIALLY DISAPPOINTING REDUCEDCHOLESTEROL EGG PRODUCT SAID IT WILL TAKE A RESTRUCTURING CHARGE OF 23 MILLION EQUAL TO 118 A SHARE AGAINST CURRENTQUARTER EARNINGS THE COST OF PRODUCING THE PRODUCT CALLED SIMPLY EGGS PROVED TO BE SIGNIFICANTLY ABOVE ORIGINAL ESTIMATES AND SALES VOLUMES HAVE BEEN LOWER THAN EXPECTED NECESSITATING THE DISCONTINUATION OF THIS BUSINESS SEGMENT THE COMPANY SAID BASED IN MINNEAPOLIS MICHAEL FOODS PRODUCED THE PRODUCT THROUGH A 30 MILLION JOINT VENTURE WITH GERMANY'S SKW NATURE'S PRODUCTS INC WHICH DEVELOPED THE CHOLESTEROLSTRIPPING PROCESS WHEN THE PRODUCT WAS ANNOUNCED EARLY LAST YEAR SHARES OF MICHAEL FOODS SOARED TO 20 YESTERDAY THEY CLOSED AT 8 UP 125 CENTS IN NASDAQ STOCK MARKET TRADING EARLIER THIS MONTH THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER RICHARD G OLSON SAID HE WOULD RETIRE AT YEAR'S END HIS DESIGNATED SUCCESSOR GREGG A OSTRANDER SAID IN YESTERDAY THAT WITHOUT SIMPLY EGGS MICHAEL FOODS IS POSITIONED FOR AN IMPROVED FINANCIAL FUTURE 9312160016 931216 PACIFIC GAS & ELECTRIC SAN FRANCISCO PACIFIC GAS & ELECTRIC CO SAID ITS BOARD AUTHORIZED MANAGEMENT TO REDEEM OR REPURCHASE AS MUCH AS 12 BILLION OF MORTGAGE BONDS 175 MILLION OF PREFERRED STOCK AND 125 MILLION OF MEDIUMTERM NOTES IN ORDER TO REDUCE FINANCING COSTS SPECIFIC DATES FOR THE REDEMPTIONS AND REPURCHASES HAVEN'T YET BEEN DETERMINED THE UTILITY SAID 9312160013 931216 POLITICS & POLICY US IS SAID TO LACK EVIDENCE TO CHARGE BROWN WITH SEEKING VIETNAM PAYMENT BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL INVESTIGATORS SAY THEY HAVEN'T FOUND SUFFICIENT EVIDENCE TO CHARGE COMMERCE SECRETARY RON BROWN WITH SOLICITING 700000 TO LOBBY ON BEHALF OF VIETNAM BEFORE NOTIFYING MR BROWN HE HAS BEEN CLEARED JUSTICE DEPARTMENT OFFICIALS WILL REVIEW INTERNAL INVESTIGATIVE REPORTS FROM THE DEPARTMENT'S PUBLIC INTEGRITY SECTION TO ENSURE THE PROBE WAS THOROUGH AND THAT ALLEGATIONS OF A COVERUP CAN'T BE CONFIRMED ONE INVESTIGATOR SAID ONE ISSUE THAT COULD ARISE FOR EXAMPLE IS WHY BINH T LY MR BROWN'S SOLE ACCUSER WASN'T CALLED BEFORE A FEDERAL GRAND JURY IN MIAMI PROBING THE MATTER IF THEY DO IN FACT CLOSE IT DOWN WITHOUT MY TESTIMONY I THINK IT'S AN INDICATION THAT JUSTICE FAILED THAT JUSTICE IS NOT FULLY SERVED MR LY SAID YESTERDAY THE JUSTICE DEPARTMENT DECLINED TO COMMENT ON THE MATTER FOR NEARLY A YEAR FEDERAL BUREAU OF INVESTIGATION AGENTS HAVE EXAMINED SECONDHAND CHARGES THAT MR BROWN SOUGHT THE MONEY ALONG WITH OTHER PAYMENTS TO WORK TOWARD RELAXING US TRADING POLICIES WITH VIETNAM MR BROWN WHO WAS INTERVIEWED BY THE FBI HAS DENIED THE CHARGES MR LY A VIETNAMESEAMERICAN FINANCIAL CONSULTANT LIVING IN FORT LAUDERDALE FLA SAID HE WAS PART OF A GROUP THAT ACTED AS INTERMEDIARIES BETWEEN MR BROWN AND VIETNAMESE GOVERNMENT OFFICIALS MR LY SAID HE WAS TOLD ABOUT THE DISCUSSIONS INVOLVING MR BROWN BY NGUYEN VAN HAO A FORMER BUSINESS PARTNER OF MR LY'S MR HAO WAS VICE PRIME MINISTER OF THE SOUTH VIETNAMESE GOVERNMENT WHEN IT FELL MR LY ACKNOWLEDGED HE HAS NO FIRSTHAND INFORMATION INDICATING MR BROWN ACTUALLY SOLICITED THE PAYMENTS HE HAS NEVER MET MR BROWN THROUGH HIS LAWYER MR BROWN HAS ADMITTED MEETING MR HAO ON THREE OCCASIONS MR HAO REPORTEDLY WAS INTERVIEWED BY THE MIAMI GRAND JURY NEITHER HE NOR HIS LAWYER WOULD COMMENT ON THE TESTIMONY MR LY WHO ALSO GOES BY THE NAME LY THANH BINH SAID HIS LAST SUBSTANTIAL CONTACT WITH THE BUREAU WAS IN APRIL MR LY HAS PURSUED HIS CHARGES WITH MEMBERS OF CONGRESS THE MEDIA AND IN A LETTER TO THE PRESIDENT HE TOLD PRESIDENT CLINTON A FULL HEARING ON THE MATTER IS NEEDED SO THAT FUTURE NORMALIZATION WITH VIETNAM WOULD NOT JUST BENEFIT A HANDFUL OF GOVERNMENT OFFICIALS MR BROWN'S SUPPORTERS HAVE SUGGESTED THE CHARGES MIGHT HAVE BEEN MADE TO STYMIE ANY NORMALIZATION DURING INTERVIEWS MR LY HAS SAID MR HAO SPOKE OF A DECEMBER 1992 MEETING DURING WHICH MR BROWN ALLEGEDLY OUTLINED SEVERAL AREAS IN WHICH HE COULD ASSIST THE VIETNAMESE GOVERNMENT ACCORDING TO MR LY THESE AREAS INCLUDED LIFTING THE US TRADE EMBARGO ON VIETNAM ARRANGING FAVORABLE IMPORT TARIFFS AND SECURING FINANCING FOR OIL GAS TELECOMMUNICATIONS AND INFRASTRUCTURE PROJECTS MR LY SAID HE WAS TOLD THAT MR BROWN ALLEGEDLY REQUESTED OIL AND GAS ROYALTIES IN ADDITION TO THE 700000 BUT MR LY SAID HE DIDN'T KNOW WHETHER ANY MONEY WAS EVER PAID ACCORDING TO MR LY THE FUNDS WERE TO BE TRANSFERRED THROUGH BANKS IN HONG KONG AND SINGAPORE MR LY SAID MR HAO SHOWED HIM PAPERS SUGGESTING AN ACCOUNT HAD BEEN OPENED IN SINGAPORE BUT THE PAPERS HAD NO ACCOUNT NUMBER MR LY SAID HE AND MR HAO MET WITH VIETNAMESE PRIME MINISTER VO VAN KIET BETWEEN NOV 30 1992 AND DEC 19 AFTER A PRIVATE MEETING BETWEEN MR HAO AND MR KIET MR HAO SAID THE DEAL WITH MR BROWN WAS APPROVED ACCORDING TO MR LY MR LY SAID HE THEN WROTE A LETTER TO MR BROWN CONFIRMING THE DEAL FOR MR KIET'S SIGNATURE THE VIETNAMESE GOVERNMENT HAS DENIED APPROVING PAYMENTS FOR MR BROWN MR LY SAID HE ALSO WROTE TO MARC ASHTON AN ASSOCIATE OF MR BROWN'S SAYING THE TRIP WAS SUCCESSFUL MR ASHTON WAS PRESENT WHEN MR BROWN MET WITH MR HAO ACCORDING TO REID WEINGARTEN MR BROWN'S LAWYER ONE MEETING WAS IN THE HOME OF MR ASHTON'S SISTERINLAW A HOUSE OWNED BY MR BROWN A LAW ENFORCEMENT OFFICIAL SAID MR LY PASSED AN FBI LIEDETECTOR TEST IN FEBRUARY REGARDING HIS KNOWLEDGE OF THE BROWN AFFAIR MR LY SAID HE CARRIED A BRIEFCASE RIGGED BY THE FBI WITH A MICROPHONE THREE OR FOUR TIMES IN AN ATTEMPT TO RECORD MR HAO DISCUSSING THE ALLEGED DEAL WITH MR BROWN MR HAO HOWEVER DIDN'T DISCUSS THE COMMERCE SECRETARY ON THOSE OCCASIONS MR LY SAID MR WEINGARTEN SAID THE SECRETARY MET MR HAO TWICE BEFORE JOINING THE CLINTON ADMINISTRATION AND ONCE AFTER BUT NEVER ENTERED INTO ANY AGREEMENT TO IMPROPERLY WORK ON VIETNAM'S BEHALF IN AUGUST A COMMERCE DEPARTMENT STAFF MEMBER ISSUED A STATEMENT SAYING THE SECRETARY CATEGORICALLY AND UNEQUIVOCALLY DENIES HE HAS EVER HAD ANY BUSINESS FINANCIAL OR PROFESSIONAL RELATIONSHIP WITH ANY VIETNAMESE INDIVIDUAL ORGANIZATION OR GROUP OR ANY PERSON CLAIMING TO REPRESENT VIETNAMESE GOVERNMENT OR BUSINESS INTERESTS IN SEPTEMBER MR WEINGARTEN ACKNOWLEDGED THE THREE MEETINGS THOSE DISCREPANCIES LED TO CHARGES FROM REPUBLICAN CONGRESSMEN THAT MR BROWN HAD INTENTIONALLY MISLED THE PUBLIC 9312160012 931216 WHAT'S NEWS WORLDWIDE DEFENSE SECRETARY ASPIN SAID HE WOULD RESIGN NEXT MONTH IN A HASTILY CALLED OVAL OFFICE APPEARANCE ASPIN ANNOUNCED HIS RESIGNATION AND CLINTON ACCEPTED IT ASPIN'S TUMULTUOUS YEAR AT THE PENTAGON WAS MARKED BY DISPUTES OVER HOMOSEXUALS IN THE MILITARY US POLICY IN SOMALIA AND THE PENTAGON BUDGET A SENIOR DEFENSE AIDE SAID ASPIN HAD TALKED ABOUT RESIGNING EVER SINCE THE OCT 3 SOMALIA FIREFIGHT IN WHICH 18 ARMY RANGERS DIED HE HAD A HEART PACEMAKER IMPLANTED EARLIER IN THE YEAR THE WHITE HOUSE ALREADY HAS SETTLED ON TWO CANDIDATES TO SUCCEED ASPIN AND HOPES TO ANNOUNCE A CHOICE SOON OFFICIALS DECLINED TO IDENTIFY THE TWO BRITAIN AND IRELAND AGREED ON A FRAMEWORK FOR PEACE IN NORTHERN IRELAND AFTER SIGNING A DECLARATION TO LET THE PEOPLE OF NORTHERN IRELAND CHOOSE THEIR POLITICAL DESTINY BRITISH PRIME MINISTER MAJOR AND IRISH LEADER REYNOLDS MADE AN IMPASSIONED APPEAL TO THE IRISH REPUBLICAN ARMY MAJOR WHO HAD VOWED NEVER TO NEGOTIATE WITH TERRORISTS ISSUED AN UNPRECEDENTED OFFER IF THE IRA HALTS ITS ATTACKS FOR THREE MONTHS ITS POLITICAL WING SINN FEIN WILL BE INVITED TO TAKE PART IN PEACE NEGOTIATIONS SINN FEIN EXPRESSED DISAPPOINTMENT WITH THE ACCORD BUT SAID IT WILL STUDY IT FURTHER BEFORE RESPONDING HARDLINE PROTESTANT POLITICIANS WERE OUTRAGED CLINTON DISCOUNTED EXTREME NATIONALIST ZHIRINOVSKY'S STRONG SHOWING IN RUSSIA'S ELECTION ON SUNDAY AND VOICED CONTINUED SUPPORT FOR PRESIDENT YELTSIN AND HIS REFORM MOVEMENT MEANWHILE THE REFORMERS MADE SOME LATE PROGRESS AS THE BALLOT COUNT PROCEEDED SUFFICIENT EVIDENCE HASN'T BEEN FOUND TO CHARGE COMMERCE SECRETARY RON BROWN WITH SOLICITING 700000 TO LOBBY ON BEHALF OF VIETNAM FEDERAL INVESTIGATORS SAID BUT BEFORE NOTIFYING BROWN HE HAS BEEN CLEARED JUSTICE DEPARTMENT OFFICIALS WILL REVIEW REPORTS TO ENSURE THAT THE PROBE WAS THOROUGH AN INVESTIGATOR SAID FRENCH SCIENTISTS PRODUCED THE FIRST PHYSICAL HUMAN GENOME MAP A PIECING TOGETHER OF DISASSEMBLED STRETCHES OF DNA THAT SHOULD SPEED THE PACE OF GENE DISCOVERY PHILANTHROPIST WALTER ANNENBERG PLANS TO ANNOUNCE THE LARGEST GIFT EVER MADE TO BENEFIT PUBLIC EDUCATION THE AMOUNT OF THE DONATION IS EXPECTED TO SURPASS ANNENBERG'S RECORDSETTING 365 MILLION CONTRIBUTION ANNOUNCED IN JUNE TO THREE UNIVERSITIES AND HIS FORMER NEW JERSEY PREP SCHOOL CALIFORNIA WOULD BE FORCED TO REDIRECT SOME OF ITS WATER RESOURCES TOWARD WILDLIFE AT THE EXPENSE OF AGRICULTURE ACCORDING TO REGULATIONS PROPOSED BY THE FEDERAL GOVERNMENT THE GOVERNMENT DELIBERATELY DROPPED RADIOACTIVE MATERIAL FROM PLANES OR RELEASED IT ON THE GROUND A DOZEN TIMES AFTER WORLD WAR II OHIO'S SEN GLENN SAID HE PRESENTED AN UNCLASSIFIED VERSION OF A REPORT ON THE EXPERIMENTS CONCEALED UNTIL NOW HAITI'S PRIME MINISTER CONCEDED THAT HIS FINAL PEACE INITIATIVE HAD FAILED AND THEN HE BURST INTO TEARS MALVAL CANCELED A NATIONAL RECONCILIATION CONFERENCE THAT WAS TO HAVE TRIED TO END A POLITICAL IMPASSE JAPAN'S HOSOKAWA WON A SIXWEEK EXTENSION OF THE CURRENT PARLIAMENTARY SESSION TO JAN 29 SO THAT HE CAN PRESS HIS FIGHT FOR POLITICAL REFORM BUT IT ISN'T CLEAR WHETHER THE PRIME MINISTER CAN GET THE LEGISLATION PASSED BY THEN SERB FORCES ARE BACKING SECESSIONIST MUSLIM REBELS WHO ARE FIGHTING THE BOSNIAN ARMY IN A BREAKAWAY BIHAC ENCLAVE OF THE FORMER YUGOSLAV REPUBLIC UN OFFICIALS SAID ISRAEL TOOK BACK THE LAST OF MORE THAN 400 PALESTINIANS IT BANISHED TO LEBANON A YEAR AGO THE RETURN OF THE 197 ISLAMIC FUNDAMENTALISTS LED TO SHARP EXCHANGES BETWEEN PRIME MINISTER RABIN AND HIS RIGHTWING OPPONENTS IN PARLIAMENT SEPARATELY ISRAEL AND THE VATICAN SAID THEY WOULD ESTABLISH FORMAL TIES AT THE END OF THIS MONTH HONG KONG'S GOVERNOR SENT HIS PROPOSED ELECTORAL REFORMS TO THE BRITISH COLONY'S LEGISLATURE IN DEFIANCE OF THE CHINESE GOVERNMENT WHICH VIEWS THE REFORMS AS A UK SCHEME TO MAINTAIN A FOOTHOLD THERE 9312160011 931216 BUSINESS BRIEF TRIARC COS COMPANY TAKES A CHARGE POSTS LOSS FOR ITS 2ND PERIOD TRIARC COS THE TROUBLED CONGLOMERATE TAKEN OVER EARLIER THIS YEAR FROM VICTOR POSNER BY FINANCIERS NELSON PELTZ AND PETER MAY TOOK 294 MILLION IN CHARGES TO ITS SECONDQUARTER EARNINGS AS IT CONTINUES TO SHED NONCORE BUSINESSES THE COMPANY WHICH HAS ABOUT 1 BILLION A YEAR IN ANNUAL REVENUE PLANS TO CONCENTRATE ON ITS ROYAL CROWN COLA CO ARBY'S INC FASTFOOD GRANITEVILLE CO TEXTILE AND DYE AND NATIONAL PROPANE CORP UNITS FOR THE SECOND QUARTER ENDED OCT 31 TRIARC REPORTED A LOSS FROM CONTINUING OPERATIONS OF 196 MILLION OR 99 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 26 MILLION OR 10 CENTS A SHARE THE NET LOSS AFTER CHARGES FROM DISCONTINUED OPERATIONS AND AN EXTRAORDINARY ITEM TOTALED 279 MILLION OR 138 A SHARE COMPARED WITH A LOSS OF 12 MILLION OR FIVE CENTS A SHARE A YEAR EARLIER REVENUE ROSE SLIGHTLY TO 2574 MILLION 9312160010 931216 CR BARD PLEADS GUILTY IN HEARTCATHETER CASE BOSTON CR BARD INC PLEADED GUILTY TO 391 CRIMINAL CHARGES RELATED TO ITS SALE OF DEFECTIVE HEART CATHETERS WHICH PROSECUTORS SAID PUT HUNDREDS OF LIVES AT RISK RESULTED IN SCORES OF EMERGENCY SURGERIES AND CAUSED TWO DEATHS WHEN THE IMPLANTED DEVICES FAILED THE PLEA HAD BEEN AGREED TO WHEN THE COMPANY'S FORMER CHAIRMAN AND FIVE OTHER FORMER OFFICERS OF THE COMPANY WERE INDICTED IN OCTOBER IN THE AGREEMENT CR BARD AGREED TO PAY 61 MILLION IN FINES AND SUBMIT TO EXTENSIVE GOVERNMENT SCRUTINY FOR FOUR YEARS IN A STATEMENT BY FEDERAL PROSECUTORS IN US DISTRICT COURT HERE LATE YESTERDAY BARD'S ACTIONS WERE DESCRIBED AS A TRULY EGREGIOUS EXAMPLE OF CORPORATE CRIMINAL CONDUCT IT SAID BARD ENGAGED IN ILLEGAL EXPERIMENTS ON HUMANS OF NEW CATHETER DESIGNS AND MADE FALSE STATEMENTS ABOUT THEIR SAFETY IN ORDER TO GET THEM TO MARKET QUICKLY TO MAINTAIN MARKET SHARE AND REAP HUGE PROFITS STILL PENDING IS A SEPARATE CRIMINAL CASE AGAINST SIX OTHER BARD EXECUTIVES AND MANAGERS INCLUDING GEORGE T MALONEY FORMER CHAIRMAN AND CHIEF EXECUTIVE BARD OF MURRAY HILL NJ IS A MAJOR MAKER OF HEALTHCARE PRODUCTS WITH ESTIMATED 1993 SALES OF 1 BILLION 9312160009 931216 BANKING BANK BRANCHES MAY GO THE WAY OF DIME STORES AND DINOSAURS BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL TAKE A GOOD LOOK AT YOUR LOCAL BANK BRANCH IT MIGHT NOT EXIST IN A YEAR OR TWO BANKS IN GENERAL HAVE TOO MANY BRANCHES SAYS JACK STACK MANAGING DIRECTOR IN CHARGE OF CHEMICAL BANK'S BRANCH NETWORK THE EXPENSE DYNAMICS IN A LOWINTERESTRATE ENVIRONMENT ARE FORCING ALL BANKS TO LOOK AT THE NUMBER OF BRANCHES AND DETERMINE WHAT MAKES SENSE MR STACK SHOULD KNOW CHEMICAL BANKING CORP IS IN THE MIDST OF CLOSING 80 BRANCHES IN NEW YORK CITY AFTER ACQUIRING MANUFACTURERS HANOVER BANK IN 1991 IT'S GRAVITATING TOWARD LARGER OFFICES WHICH WOULD REQUIRE A MINIMUM OF 80 MILLION TO 100 MILLION IN TOTAL DEPOSITS FOR BRANCHES WITH BUSINESS AND CONSUMER CUSTOMERS THE TREND ISN'T CONFINED TO NEW YORK CITY A RECENT TORRENT OF MERGERS AND ACQUISITIONS CLOSED 2454 BRANCHES LAST YEAR WHILE ONLY 1120 NEW ONES HAVE OPENED SAYS THE FEDERAL DEPOSIT INSURANCE CORP IN CALIFORNIA ALONE FOR EXAMPLE THE MERGER OF SECURITY PACIFIC CORP AND BANKAMERICA HAS ALREADY CLOSED 433 BRANCHES TO ATTRACT CUSTOMERS TO THE REMAINING BRANCHES AND BOOST PROFITABILITY BANKS ARE FOLLOWING THE LEAD OF RETAIL STORES AND SUPERMARKETS THEY'RE REDESIGNING THEIR OUTLETS BEFORE A RECENT RENOVATION CITICORP'S CITIBANK HEADQUARTERS BRANCH IN NEW YORK CITY HAD 19 TELLER WINDOWS AT ONE END OF THE OFFICE A SERVICE DESK AT THE OTHER AND CUSTOMERS SHUTTLING BACK AND FORTH BETWEEN THEM IF FOR EXAMPLE A CUSTOMER WANTED TO ORDER MORE CHECKS THE TELLERS WOULD SEND HIM TO THE SERVICE DESK IF HE WENT TO THE SERVICE DESK TO GET ACCOUNT INFORMATION HE WOULD BE DIRECTED TO A TELLER IN SEPTEMBER CITIBANK UNVEILED ITS RENOVATED BRANCH A SLEEK FUTURISTIC OFFICE FILLED WITH LIGHT THE BANK TRIPLED ITS NUMBER OF AUTOMATED TELLER MACHINES TO DRAW OFF THE SIMPLEST TRANSACTIONS CUSTOMERS ENTERING THE BANK NOW FACE A SERVICE DESK WHERE A CONCIERGE HANDLES ROUTINE QUESTIONS LIKE BALANCE INQUIRIES AND PROCEDURAL MATTERS IF THE CUSTOMER NEEDS MORE HELP THE CONCIERGE SETS UP AN APPOINTMENT USUALLY ON THE SPOT WITH A PERSONAL BANKER WHO CAN ACCESS THE RECORDS OF ANY BANK CUSTOMER WHO DIPS HIS CITICARD INTO A CARD READER THE BANKERS THEMSELVES SIT AT SEMICIRCULAR DESKS STRIPPED OF PAPERS AND EVEN PERSONAL PHOTOS AND THEIR COMPUTER TERMINALS SWIVEL SO CUSTOMERS CAN SEE THAT'S THE CUSTOMER'S SPACE SAYS STEVE PRICE CITIBANK'S VICE PRESIDENT FOR BRANCHES AT THE REDESIGNED CITIBANK BRANCH THE 19 TELLER WINDOWS HAVE BEEN CUT TO EIGHT BUT EACH IS OPEN FROM 8 AM TO 6 PM THEY FORMERLY CLOSED AT 3 PM AND TELLERS HAVE BEEN RETRAINED TO HANDLE MORE THAN JUST CASH TRANSACTIONS THE BANK ALSO BUILT A ROOM IN THE BACK SO TELLERS TAKE TURNS RECONCILING THEIR CASH DRAWERS WITHOUT SHUTTING DOWN A WINDOW WE SEE THE ROLE OF THE BRANCH CHANGING FROM WHAT IN THE PAST WAS PRIMARILY A BANKING TRANSACTION CENTER TO WHAT I CALL A RELATIONSHIP ACQUISITION AND DEVELOPMENT CENTER SAYS MR PRICE THAT'S FANCY LANGUAGE FOR SALES AND INDEED CITIBANK INVESTMENT ADVISERS HAVE DESKS JUST STEPS AWAY FROM PERSONAL BANKERS IN CASE CUSTOMERS WONDER HOW TO INVEST THEIR MONEY THE PROBLEM IS MANY CONSUMERS STILL PREFER THE OLDFASHIONED WAY OF BANKING AND ARE FRUSTRATED WITH THE BANKS' GOALS OF SCALING BACK ONE MORNING FOR INSTANCE THE TELLER LINE AT CITIBANK'S SWANK NEW BRANCH WAS IN THE DOUBLE DIGITS WHILE ATMS SAT UNUSED SOME INDUSTRY OBSERVERS INCLUDING CLEVELANDBASED BANKING CONSULTANT WILLIAM HAFFKE SUGGEST THAT BANKS MAY SHIFT TOWARD A HUBANDSPOKE SYSTEM SOMETHING AKIN TO THE AIRLINE INDUSTRY NEIGHBORHOOD BRANCHES WOULD OFFER SERVICES TAILORED TO THEIR COMMUNITIES SMALL BUSINESS LOANS IN COMMERCIAL DISTRICTS FOR EXAMPLE WITH CENTRALLY LOCATED MAIN BRANCHES HAVING THE FULL COMPLEMENT OF AMENITIES THE FULLSERVICE BRANCH IS AN EXPENSIVE PROPOSITION MR HAFFKE SAYS BUT NOT EVERY BRANCH HAS TO BE LIKE THAT HE SAYS BRANCH CLOSINGS MEAN CONSUMERS AND SMALLBUSINESS OWNERS ARE FORCED TO LOOK FURTHER AFIELD TO FIND THE SERVICES TO WHICH THEY'VE BECOME ACCUSTOMED MARVIN GIMPEL STILL COMPLAINS ABOUT FIRST FIDELITY BANK'S CLOSING TWO YEARS AGO OF A BRANCH THREE BLOCKS FROM HIS TINY PHARMACY IN CENTRAL PHILADELPHIA NOW HE KEEPS HIS CREDIT CARD AND MONEY ORDER ACCOUNTS AT A MELLON BANK BRANCH FOR THE LOWER FEES BUT DEPOSITS CASH RECEIPTS AND GETS CHANGE FROM FIRST EXECUTIVE A NEARBY BANK WITH FEWER SERVICES THAN A LARGE BRANCH THEY DIDN'T HAVE TO CLOSE THAT FIRST FIDELITY BRANCH THEY COULD HAVE MERCHANDISED IT BETTER HE GRIPES YOU REALLY HIT A NERVE HERE SOME BANKS ARE DOING SOMETHING EVEN MORE REVOLUTIONARY THAN CLOSING OR RENOVATING THEY'RE BUILDING NEW BRANCHES FIFTH THIRD BANCORP IS OPENING FOUR BRANCHES A MONTH IN A GROWTH SPURT THAT WILL TAKE THE CINCINNATIBASED COMPANY TO 350 BRANCHES IN OHIO KENTUCKY AND INDIANA OVER THE NEXT 18 MONTHS UNLIKE A NUMBER OF PEOPLE WE DON'T THINK TRADITIONAL BRANCHES ARE DEAD BY ANY MEANS SAYS CHIEF FINANCIAL OFFICER MICHAEL BRUMM WE DON'T THINK THEY'RE PARTICULARLY RISKY VENTURES IN DECIDING WHERE TO OPEN OFFICES FIFTH THIRD LOOKS FOR NEW SUBDIVISIONS MALLS AND RETAIL AREAS AND HAS OPENED 60 MINIBRANCHES WHICH OFFER A RANGE OF SERVICES INCLUDING A REALLIVE BANK OFFICER IN SUPERMARKETS IN OHIO AND KENTUCKY WE DON'T HAVE TO BE TOO SMART IN TERMS OF STORE LOCATION KROGER SUPERMARKETS DID THAT MR BRUMM SAYS WE'RE PAYING THEM MORE THAN LETTUCE SALES ON A SQUARE FOOTAGE BASIS THOSE BANK MARTS ARE SPOKES DOING PRIMARILY DEPOSITS AND WITHDRAWALS LARGER BRANCHES ARE HUBS THAT PROVIDE MORE SERVICES ON CINCINNATI'S EAST SIDE FOR EXAMPLE THE ANDERSON TOWNSHIP BRANCH HAS A FULL BRANCH OFFICE WITH 56 MILLION IN DEPOSITS WHILE A BANK MART AT THE FOREST HILLS KROGER SEVERAL MILES AWAY HAS DEPOSITS OF 12 MILLION FIFTH THIRD KEEPS A LIST OF UNDERPERFORMING BRANCHES TO SEE WHICH ONES MISS ITS BREAKEVEN TARGETS OF 6 MILLION IN CORE DEPOSITS FOR BANK MARTS AND 12 MILLION FOR REGULAR BRANCHES BRANCHES THAT DON'T MEASURE UP ARE CLOSED BUT MR BRUMM ACKNOWLEDGES THAT FIFTH THIRD'S STRATEGIES WORK BECAUSE ITS EXPANSION HAS COME FROM BUYING INDIVIDUAL BRANCHES WITH THEIR DEPOSITS AND THAT SO FAR IT DOESN'T HAVE A COMMANDING MARKET SHARE IN MOST OF THE CITIES IT SERVES IF WE MERGE WITH SOME OTHER BANK WITH OVERLAPPING BRANCHES OUR PHILOSOPHY WOULD CHANGE HE SAYS 9312160008 931216 WHO'S NEWS DATA SWITCH NAMES LIFKA TO 2 TOP POSTS SHELTON CONN DATA SWITCH CORP ANNOUNCED THE RESIGNATIONS OF ITS PRESIDENT AND CHAIRMAN AS PART OF A MAJOR EFFORT TO REORIENT THE COMPANY'S OPERATIONS TOWARD NEW PRODUCTS AND TO TAKE A MORE AGGRESSIVE STANCE IN ITS MARKETS THE COMPANY WHICH MAKES DATACENTER NETWORKING PRODUCTS FOR CORPORATIONS AND EXPECTS REVENUE TO APPROACH 100 MILLION IN 1993 SAID IT NAMED WILLIAM J LIFKA TO SUCCEED J ROGER MOODY 60 YEARS OLD AS PRESIDENT AND CHIEF EXECUTIVE MR LIFKA 64 WILL ALSO SUCCEED COMPANY FOUNDER RICHARD E GREENE 55 WHO IS STEPPING DOWN FROM HIS POSITION AS CHAIRMAN AS OF DECEMBER 1992 MR GREENE OWNED ABOUT 18 OF THE COMPANY OFFICIALS DECLINED TO GO INTO DETAILS OF WHAT OCCURRED AT DATA SWITCH'S REGULAR MONTHLY BOARD MEETING AT WHICH MR LIFKA AN OUTSIDE DIRECTOR WAS NAMED TO HEAD THE COMPANY MR LIFKA A DIRECTOR SINCE 1985 AND UNTIL EARLIER THIS YEAR CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF SUMMAGRAPHICS CORP SAID DATA SWITCH CURRENTLY EXPECTS ONLY A BREAKEVEN YEAR SIGNIFICANTLY BELOW PREVIOUS EXPECTATIONS IN RECENT WEEKS DATA SWITCH SHARES HAVE BEEN TRADING UNDER 2 CHIEF FINANCIAL OFFICER MICHAEL STASHOWER SAID THE COMPANY'S CURRENT PRODUCTS SERVING AIRLINES BANKS AND TELECOMMUNICATIONS COMPANIES LARGELY SUPPORT INTERNATIONAL BUSINESS MACHINES CORP'S MAINFRAME COMPUTER SYSTEMS HE SAID THE COMPANY NEEDS TO MOVE AWAY FROM THAT PRODUCT EMPHASIS MR LIFKA SAID THE BOARD WILL BEGIN SEARCHING FOR A PRESIDENT AND CHIEF EXECUTIVE MR GREEN WHO FOUNDED DATA SWITCH IN 1977 WILL CONTINUE TO SERVE AS A DIRECTOR AND CONSULTANT NEITHER HE NOR MR MOODY COULD BE REACHED 9312160007 931216 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PAGING NETWORK INC AN OFFERING OF 200 MILLION OF SENIOR SUBORDINATED NOTES VIA GOLDMAN SACHS & CO MERRILL LYNCH & CO AND PRUDENTIAL SECURITIES INC SOUTHERN UNION CO A SHELF OFFERING FOR UP TO 475 MILLION OF DEBT SECURITIES VIA LEHMAN BROTHERS VENTURE HOLDINGS TRUST AN OFFERING OF UP TO 100 MILLION OF SENIOR SUBORDINATED NOTES VIA ALEX BROWN & SONS INC AND SPP HAMBRO & CO WATER POINT SYSTEMS INC AN INITIAL OFFERING OF 22 MILLION COMMON SHARES AT 5 A SHARE VIA WHALE SECURITIES CO 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 9312160006 931216 SOUTHERN COOKING IS TO DIE FOR THAT'S THE RUB OF THE GRUB FOLKS CLING TO FAT SALT SUGAR AND IT ALL CLINGS TO THEM SAYS NASHVILLE FOOD CRITIC BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL NASHVILLE TENN AT A RESTAURANT CALLED YA MAMA'S NICKI PENDLETON PROBES THE MASHED POTATOES NO LUMPS SHE COMPLAINS MUST BE INSTANT SHE POKES A YELLOW HEAP OF BUTTER BEANS AND SKEWERS GLISTENING WORMLIKE MORSELS STRIPS OF FATBACK SHE SAYS DISAPPROVINGLY THE FOOD WRITER DISSECTS BROCCOLIANDCHEESE CORN BREAD AND A FRIED GRAVYCHOKED DISH CALLED SMOTHERED CHICKEN THE CALORIE COUNT HELLACIOUS BEYOND THE TELLING AND I HAVEN'T HAD DESSERT YET AFTER SAMPLING PEACH COBBLER AND COCONUT CREAM PIE MS PENDLETON PUTS DOWN HER FORK AND PICKS UP A PEN SHE WILL GIVE THE RESTAURANT A MIXED REVIEW FOR THE NASHVILLE BANNER AND ALSO WARN ABOUT ALL THE FAT THIS FOOD WAS DESIGNED TO FUEL FIELD WORK SHE SAYS DESK WORKERS WHO EAT IT JUST UP AND DIE AT 55 SUCH DIETARY ADVICE GOES DOWN POORLY WITH SOME BANNER READERS MANY OF WHOM REGARD HEARTSTOPPING GRUB AS A SOUTHERN BIRTHRIGHT EVEN HARDER TO DIGEST ARE MS PENDLETON'S COLUMNS EXTOLLING SOYBEANS LEMON GRASS AND OTHER EXOTIC VICTUALS IF THE LORD MEANT US TO EAT TOFU HE'D HAVE MADE IT GROW STRAIGHT FROM THE GROUND GRIPES DOTTIE BEST A BANNER READER WHO PREFERS THE WHOLE NINE YARDS OF HOME COOKING FROM HOG JAW TO HOMINY GRITS HOME COOKING LIKE SO MUCH ELSE HERE HAS BECOME A BATTLEGROUND BETWEEN OLD SOUTH AND NEW SOUTH AS STRIP MALLS ENGULF ANTEBELLUM HOMES SO TOO DO NEW TASTES FAST FOOD ETHNIC FOOD HEALTH FOOD THREATEN THE REGION'S TRADITIONAL FARE AT STAKE ISN'T JUST THE SOUTH'S DIET BUT ALSO ITS IDENTITY FOOD AND SPEECH PATTERNS ARE THE SOUTH'S ONLY DURABLE ICONS SAYS JOHN EGERTON AUTHOR OF SOUTHERN FOOD AND AN UNOFFICIAL DEAN OF THE REGION'S CUISINE IF YOU TAKE THOSE AWAY WHAT'S LEFT LUNCHING WITH MS PENDLETON MR EGERTON TUCKS INTO PORK CHOPS FATBACKSOAKED VEGETABLES AND A SICKLYSWEET DESSERT CALLED CHESS PIE THIS MEAL'S GOT ALL SIX OF THE MAJOR FOOD GROUPS IN THE SOUTH HE OBSERVES SUGAR SALT BUTTER EGGS CREAM AND BACON GREASE NONETHELESS HE ADDS PART OF HEALTH IS MENTAL HEALTH THIS FOOD ISN'T GREAT FOR MY WAIST BUT I NEED IT FOR MY HEAD PSHAW SAYS MS PENDLETON TO HER THE SOUTH'S TRADITIONAL FOOD ISN'T JUST LETHAL IT IS ALSO OVERCOOKED AND MONOTONOUS AND IT HALLOWS A TIMEHONORED CULTURE FOR WHICH SHE HAS LITTLE REVERENCE SOUTHERN HERITAGE IS ABOUT MARRYING YOUR COUSIN LOSING YOUR TEETH AT 30 AND DYING OF A STROKE AT 50 SHE SAYS SARCASTICALLY IT'S NOT A TRADITION I GET TEARYEYED ABOUT DESPITE SUCH HERESIES MS PENDLETON ISN'T A CARPETBAGGER NOR IS SHE THE SORT OF CHIC SOCIAL XRAY IDENTIFIED BY WRITER TOM WOLFE A 32YEAROLD NASHVILLE NATIVE SHE IS A HEARTY EATER WHO WAS RAISED ON GREASY FOOD AND REGARDS HERSELF AS SLIGHTLY OVERWEIGHT IF I DIDN'T WORK OUT I'D BE HUGE AND I'M NOT EXACTLY PETITE AS IT IS SHE SAYS MS PENDLETON'S ROLE AS MANGEUSE PROVOCATEUR ALSO IS RECENT HER COMINGOUT AS A FOOD WRITER OCCURRED ONLY TWO YEARS AGO WHEN SHE WROTE A FREELANCE ARTICLE EXPOSING WHAT SHE CALLS HIDEOUS SOUTHERN GIRL FOOD A SUBCUISINE THAT TENDS TOWARD GHASTLY COMBINATIONS OF PACKAGED FOODS TYPICAL ARE CONGEALED SALADS REQUIRING INGREDIENTS SUCH AS WHIPPED CREAM LEMON JELLO CANNED CHICKEN SOUP MAYONNAISE AND TUNAMIXED CHILLED AND SERVED ON LETTUCE IT'S THE SORT OF FOOD THAT CLINTON CUT HIS TEETH ON SAYS MS PENDLETON WHO ADDS THAT SUCH RECIPES BECAME POPULAR AFTER WORLD WAR II WHEN REFRIGERATORS PREMIXED FOODS AND A DEGREE OF PROSPERITY REACHED THE SOUTH A YEAR AFTER HER HIDEOUS GIRL FOOD DEBUT MS PENDLETON BECAME FOOD EDITOR FOR THE BANNER AN AFTERNOON PAPER WITH A LARGELY CONSERVATIVE AND ELDERLY AUDIENCE IT IS A CURIOUS MATCH INTENDED IN PART TO ATTRACT YOUNGER READERS AND SPICE THE PAPER'S PROSE THE BANNER'S VERY TRADITIONAL AND NICKI'S NOT SAYS THE LIFESTYLE EDITOR LANCE MCKERLEY AS MS PENDLETON WORKS AT A NEARBY COMPUTERCLAD IN A TALL WHITE CHEF'S HAT AND EARRINGS DECORATED WITH TINY FORKS AND KNIVES A NOTICE ON HER OFTRAIDED BOOKSHELF READS TOUCH THESE COOKBOOKS AGAIN AND DIE YOU WEASEL MS PENDLETON'S RECONSTRUCTIONIST STYLE BECAME OBVIOUS IN HER INAUGURAL COLUMN IN WHICH SHE WROTE ABOUT PICKING BLACKBERRIES WITH HER GRANDMOTHER MYRTLE QUALLS AND THEN TOLD WHAT THEY EACH DID WITH THE FRUIT MRS QUALLS BAKED A COBBLER MS PENDLETON CONFECTED A FROZEN BLACKBERRY MOUSSE I HADN'T EVEN HEARD OF THE WORD EXCEPT I GUESS IF SOMEONE WAS TALKING ABOUT A MOOSE SAYS THE 75YEAROLD MRS QUALLS WORSE YET MS PENDLETON GOT HER GRANDMOTHER'S COBBLER RECIPE WRONG NOR HAS MRS QUALLS BEEN CONVERTED BY MS PENDLETON'S SUBSEQUENT COLUMNS ABOUT NOUVELLE CUISINE I TOLERATE HER MRS QUALLS SAYS OF HER WAYWARD GRANDDAUGHTER BUT I DON'T KNOW HOW MANY PEOPLE REALLY DO THOSE WILD RECIPES ALSO DOUBTFUL IS THE WIFE OF A BANNER EDITOR WHO ACCOSTED MS PENDLETON AT CHURCH AND DEMANDED YOU HAVE GOT TO GET SOME REAL FOOD IN THE PAPER WE ARE SO SICK OF READING ABOUT SALMON AND FANCY MUSTARD MS PENDLETON'S PENCHANT FOR ETHNIC FOOD ALSO HAS RAISED A FEW HACKLES NASHVILLE IS A COSMOPOLITAN CITY WITH A RANGE OF FOREIGN CUISINES EVEN SO IT REMAINS STODGY ENOUGH FOR ONE CAFE TO OFFER A TONGUEINCHEEK DISH TITLED BOB'S ETHNIC PLATE WHICH INCLUDES BOLOGNA AMERICAN CHEESE WHITE BREAD AND BRIGHT YELLOW MUSTARD NASHVILLE ALSO HARBORS A DOZEN OR SO SHRINES TO SOUTHERN COOKING KNOWN AS MEATANDTHREES THESE SIMPLE LUNCHEONETTES OFFER A CHOICE OF ONE MEAT DISH SUCH AS COUNTRY FRIED STEAK AND THREE FATDRENCHED VEGETABLES SUCH AS SWEET POTATO GLAZED CARROTS AND TURNIP GREENS OILY CORN BREAD SUGARY ICED TEA AND EVEN SWEETER PIES COMPLETE THE MEAL ON THE RARE OCCASIONS WHEN MS PENDLETON REVIEWS SUCH EATERIES SHE WORKS IN CAVEATS ABOUT THE FOOD'S FAT AND CHOLESTEROL CONTENT DON'T EVER FORGET SHE WARNED READERS AT THE START OF ONE SUCH REVIEW THAT THIS IS THE STUFF THAT KILLED ELVIS THE KING IT MIGHT BE RECALLED ATE BACON BY THE POUND OFTEN SLATHERED WITH PEANUT BUTTER OR WRAPPED AROUND CHICKEN LIVERS BUT JIM DENNISON LIKE MANY BANNER READERS SAYS MS PENDLETON IS WHISTLING DIXIE WHEN SHE WARNS ABOUT HEALTH IN HIS 30 YEARS AS OWNER OF A MEATANDTHREE HE HAS SENSED LITTLE DEMAND FOR CHANGE WE DO HAVE DIET COKE NOW BUT THAT'S ABOUT IT SAYS MR DENNISON WHO STILL DINES ON THE RESTAURANT'S FOOD DESPITE TRIPLEBYPASS SURGERY THREE YEARS AGO AT THE AGE OF 52 NOT DEAD YET AT A ROADSIDE RESTAURANT CALLED MR PIG'S WILLIAM KIMBRO GOES ONE STEP FURTHER SQUINTING THROUGH HICKORY SMOKE AS HE BARBECUES PORK SHOULDER MR KIMBRO SUSPECTS THERE IS A CONSPIRACY AFOOT POSSIBLY NORTHERNINSPIRED THIS LITTLE LADY HE SAYS OF MS PENDLETON WANTS TO CUT US OFF FROM OUR FOOD THE SAME WAY SHERMAN DID AND LIKE MR DENNISON HE DISMISSES THE HEALTH ISSUE NOTING I'VE BEEN EATING HOME COOKING EVERY DAY FOR 51 YEARS AND IT HASN'T KILLED ME YET RESPONDS MS PENDLETON YEAH WELL I'D SAY HE'S GOT ABOUT TWO OR THREE YEARS LEFT THE FOOD WRITER GUARDS HER OWN HEALTH BY GOING TO AEROBICS CLASSES BETWEEN RESTAURANT REVIEWS AT HOME SHE ACTUALLY DOES COOK A LOT OF TOFU SHE SAYS AND DOES MUCH OF HER SHOPPING AT A HEALTHFOOD STORE BUT MS PENDLETON ISN'T A PURIST SHE REGARDS SOUTHERN COOKING AS AN OCCASIONAL INDULGENCE NOTING IT'S VERY GOOD HANGOVER FOOD AND IN HER KITCHEN CABINET TUCKED BEHIND THE GRANOLA AND HERBAL TEA AND DRIED PEPPERS IS A GIFT FROM HER GRANDMOTHER A FIVEPOUND TUB OF LARD IT MAKES AWESOME CORN BREAD SHE SAYS 9312160005 931216 LEISURE & ARTS FILM SPIELBERG'S PORTRAIT OF A HOLOCAUST HERO BY JULIE SALAMON I'M TIRED OF HAVING THE HOLOCAUST CRAMMED DOWN MY THROAT AN ACQUAINTANCE OF MINE SAID TO ME RECENTLY SHE IS SOMEONE WHO I THINK WOULD CLASSIFY HERSELF AS A LIBERAL AN EDUCATED PERSON WITH AN OPEN MIND YET THIS WAS HER REACTION TO THE VERY IDEA OF SCHINDLER'S LIST STEVEN SPIELBERG'S FILM ABOUT A HEDONISTIC GERMAN INDUSTRIALIST WHO FOUND A MOMENT OF GRACE BY SAVING MORE THAN A THOUSAND JEWS FROM THE NAZIS I WAS SHOCKED AT FIRST BY HER BLUNTNESS AND APPALLED BUT I REALIZE HER REACTION IS PROBABLY NOT UNCOMMON CERTAINLY NOT AMONG NONJEWS THE ACTUAL FOOTAGE OF THE CONCENTRATION CAMPS AND THE GHETTOS ONCE SHOWN ONLY AT HEBREW SCHOOLS AND SYNAGOGUES HAS BECOME WIDELY AVAILABLE ON TELEVISION AND MOST OF THE HOLOCAUST DRAMA ON FILM HAS SIMPLY DEMONSTRATED THAT THIS SUBJECT THE SUBJECT OF INCOMPREHENSIBLE EVIL IS BEYOND THE GRASP OF MOST FILMMAKERS WITH RARE EXCEPTIONS MOST DRAMATIC FILMS HAVE CHEAPENED THE ENORMITY OF THE EVENT WITH FALSE MELODRAMA THESE DRAMATIZATIONS OFFER MORE PAIN THAN ENLIGHTENMENT SINCE THE PEOPLE WHO MAKE THE EFFORT TO SEE THEM USUALLY DON'T NEED THE MOST BASIC LESSON NEVER AGAIN SO THEY EMERGE FROM THESE EXPERIENCES FEELING HORRIFIED AND HELPLESS DOUBLY DRAINED BY CRUEL HISTORY AND BAD ART A STEVEN SPIELBERG FILM ABOUT THE HOLOCAUST PRESENTED A DIFFERENT SET OF CONCERNS NOT THAT HE WOULD MAKE A FILM THAT WAS TOO DRAINING TOO EMPTY OF HOPE BUT THAT HE WOULD DO THE OPPOSITE FORCE SOME FALSE REDEMPTION SOME MAGIC INTO THE MATERIAL HE HAS AFTER ALL DEVOTED HIS ENORMOUS FILMMAKING GIFT TO ADVENTURE AND FANTASY WHEN HE HAS TRIED HIS HAND AT MORE SERIOUS SUBJECTS AS HE DID WITH THE COLOR PURPLE AND EMPIRE OF THE SUN HIS DEPENDENCE ON TECHNOLOGICAL WIZARDRY BECAME A DISTRACTION WITH SCHINDLER'S LIST HOWEVER MR SPIELBERG HAS CREATED SOMETHING THAT FALLS OUTSIDE THE REALM OF ORDINARY OR EVEN EXTRAORDINARY MOVIES IT IS AS THOUGH HIS PASSION FOR THIS SUBJECT FREED HIM TO MAKE A FILM THAT IS ALMOST ENTIRELY FREE OF ARTIFICE THIS GOES BEYOND HIS ABANDONMENT OF TECHIE TOOLS THE STEADICAM THE CRANES THE ZOOMING DOLLY SHOTS HE HAS ALSO ABANDONED THE CALCULATION ONE SENSES IN MANY OF HIS FILMS THE SHREWD COMMERCIAL INSTINCT FOR THE NOTE THAT WILL SELL WELL EVEN THOUGH IT MAY BE TINNY THIS SAME RESTRAINT HAS BEEN EXERCISED BY COMPOSER JOHN WILLIAMS WHO HAS GIVEN THIS FILM AN EXQUISITELY MODULATED SCORE SCHINDLER'S LIST ONLY EMPHASIZES WHAT HAS ALWAYS BEEN MR SPIELBERG'S REAL GENIUS HIS POETIC VISUAL IMAGINATION HIS INTELLIGENCE AND THE SENSE OF HUMANITY THAT SO PROFOUNDLY INFORMED HIS EARLIER FILMS AND BECAME LESS NOTICEABLE AFTER THE HUGE SUCCESS OF ET THE EXTRATERRESTRIAL FILMED BEAUTIFULLY IN BLACKANDWHITE BY JANUSZ KAMINSKI SCHINDLER'S LIST HAS THE DEPTH OF FEELING AND THE HYPNOTIC BEAUTY OF THE ITALIAN NEOREALIST FILMS MADE AFTER WORLD WAR II BY FILMMAKERS WHO HAD LIVED THROUGH THE BRUTALITY OF WAR THOUGH NOTHING IN MR SPIELBERG'S OWN EXPERIENCE COULD HAVE FORMED HIM IN THAT WAY HE WAS BORN IN CINCINNATI AFTER THE WAR AND GREW UP IN COMFORTABLE AMERICAN SUBURBS THE PICTURE HAS THE EMOTIONAL TRUTH OF EXPERIENCE HE HAS FLINCHED FROM NOTHING THE MOVIE GRAPHICALLY INVESTIGATES THE GARGANTUAN BRUTISHNESS AS WELL AS THE INDIVIDUAL INDIGNITIES THAT WERE PART OF THE NAZI PLAN TO ELIMINATE THE JEWS YET THE FILM ISN'T DRAINING EVEN THOUGH IT IS MORE THAN THREE HOURS LONG ENLIGHTENING WITHOUT BLUDGEONING IT IS ODDLY EXHILARATING IT IS ALSO A VALUABLE HISTORICAL DOCUMENT LIKE THE THOMAS KENEALLY BOOK ON WHICH IT IS BASED THE MOVIE SCRIPT BY STEVEN ZAILLIAN PROVIDES IN AN ACCESSIBLE WAY A DETAILED ACCOUNT OF THE INSANE MECHANICS OF THE FINAL SOLUTION MR SPIELBERG INTERWEAVES THIS SHOAHLIKE DOCUMENTARY OF DEATH WITH THE MORE HUMAN AND HUMANSCALE STORY OF SCHINDLER AND THE JEWS HE SAVED STYLE KEEPS THE TWO STRANDS SEPARATE EVEN AS THEY WIND AROUND EACH OTHER RIGHT AS THE MOVIE BEGINS WE SEE THE ROUNDING UP OF THE JEWS IN KRAKOW POLAND A PROUD CENTER OF JEWISH CULTURE FOR CENTURIES THESE SCENES ARE SHOT WITH A HANDHELD CAMERA WITH THE HURRIED URGENCY OF A NEWS DOCUMENTARY WE SEE WELLDRESSED MIDDLECLASS PEOPLE LINING UP UNCERTAINLY IN ROWS FOR RELOCATION TO THE GHETTO WE SEE WEALTHY JEWS EVICTED FROM THEIR FAMILY MANSION HURRIEDLY STUFFING VALUABLES INTO SUITCASES ENTER OSKAR SCHINDLER LIAM NEESON WHO FIRST APPEARS ON CAMERA AS A COMPOSITE OF CLOTHES WE SEE THE SUIT THE ELEGANT CUFFS ALL THE MARKINGS OF A DAPPER MANAND PERHAPS A SINISTER MAN HE WEARS A SWASTIKA PIN ON HIS LAPEL SCHINDLER IS NEW IN TOWN AND HE IS MAKING A MARK SHOWING UP AT THE MOST ELEGANT CAFES BEHAVING AS THOUGH HE'D BEEN A BIG MAN IN TOWN FOR YEARS THESE SCENES ARE SHOT IN THE SULTRY ROMANTIC STYLE OF AN ELEGANT 1940S THRILLER ONE WANTS TO KNOW WHO IS THIS HANDSOME MAN HANDILY SEDUCING THE WOMEN AND INTIMIDATING THE MEN OF THE LOCAL GENTRY INCLUDING NAZIS SCHINDLER REMAINS A SHADOWY FIGURE THROUGHOUT THE MOVIE EVEN THOUGH WE LEARN MANY THINGS ABOUT HIM HE HAS MOVED INTO A CONFISCATED JEWISH MANSION HE WAS A FAILED INDUSTRIALIST WHO HAS COME TO KRAKOW TO TRY AGAIN HE FINDS HE BENEFITS FROM THE RACIAL LAWS IMPOSED BY THE NAZIS BECAUSE HIS FACTORY MANUFACTURES GOODS NECESSARY TO THE WAR EFFORT HE'S ENTITLED TO SLAVE LABOR HIRING JEWS IS GOOD FOR BUSINESS YET SCHINDLER ISN'T AN EVIL MAN HE IS MORALLY UNCONSCIOUS THE WAR HAS BEEN BAD FOR THE JEWS BUT IT IS GOOD FOR HIM AND HE DOESN'T MIND THAT AT ALL BUT AS TIME GOES ON HE CAN NO LONGER REMAIN UNCONSCIOUS THE GHETTO IS LIQUIDATED AND THE JEWS SOME OF WHOM HAVE BECOME HIS JEWS ARE PUT IN A CONCENTRATION CAMP OUTSIDE KRAKOW THOSE THAT AREN'T RANDOMLY MURDERED FIRST WE DON'T SEE THE MOMENT WHEN SCHINDLER CHANGES BUT HE CHANGES HE BECOMES A MORAL MAN AND STARTS TO USE HIS CHARM TO KEEP HIS JEWS ALIVE HE MAKES HIS FAMOUS LIST NAMING THE WORKERS HE SAYS HE HAS TO HAVE TO KEEP HIS BUSINESS GOING WE LEARN ALL THESE THINGS ABOUT SCHINDLER BUT WE NEVER KNOW HIM THIS DOESN'T WEAKEN THE FILM HOWEVER BUT BECOMES PART OF ITS STRENGTH EVERYTHING ABOUT SCHINDLER IS ROMANTIC EVEN HIS RIGHTEOUSNESS HE STANDS APART FROM OTHER MEN BOTH IN THE EYES OF THE GERMANS AND THE JEWS THIS MASK OF COLDNESS FINALLY CRACKS WHEN SCHINDLER FINALLY BREAKS INTO AN EMOTIONAL GUILTRIDDEN SPEECH THAT WE AREN'T PREPARED FOR BY THE CHARACTER WE'VE SEEN UP UNTIL THEN SCHINDLER IS A PECULIAR HERO MUCH MORE COMPLICATED AND LESS EXCITING IN CONVENTIONAL TERMS THAN THE VILLAIN AMON GOETH THE PSYCHOPATHIC NAZI COMMANDER OF THE PLASZOW CONCENTRATION CAMP PLAYED WITH BRILLIANT CUNNING BY THE BRITISH ACTOR RALPH FIENNES GOETH PERSONALIZES THE INSANITY FROM HIS VILLA PERCHED ABOVE THE CONCENTRATION CAMP HE TAKES RANDOM POTSHOTS AT JEWS AS THOUGH THEY ARE CHICKENS AND HE IS A CRUEL FARMER WHEN HE FALLS DEEPLY DECADENTLY IN LOVE WITH HIS JEWISH MAID HE BEATS HER AND TELLS HER SADLY I REALIZE YOU ARE NOT A PERSON IN THE STRICTEST SENSE OF THE WORD AS FOR THE JEWS THOUGH THEY BECOME PART OF THE PANORAMA THEY ARE NOT DEHUMANIZED EXCEPT FOR BEN KINGSLEY THE JEWISH ACCOUNTANT WHO PLAYS SCHINDLER'S CONSCIENCE AND BUSINESS ADVISER THE EUROPEAN AND ISRAELI ACTORS PLAYING JEWS ARE NOT WELLKNOWN HERE THEIR STORIES ARE TOLD IN STRIKING VIGNETTES YOU DON'T KNOW THE NAMES BUT YOU WILL NEVER FORGET THE FACES VIDEO TIP THE GREAT ITALIAN NEOREALIST DIRECTOR VITTORIO DE SICA MADE A BEAUTIFUL FILM ABOUT THE HOLOCAUST IN ITALY THE GARDEN OF THE FINZICONTINIS IT IS THE STORY OF ARISTOCRATIC JEWISHITALIAN LANDOWNERS WHO REFUSED TO BELIEVE UNTIL IT WAS TOO LATE THAT THE ANTIJEWISH MEASURES OF THE MUSSOLINI PERIOD APPLIED TO THEM 9312160004 931216 BUSINESS BRIEF ITT SAYS IT WILL GET RAYONIER DIVIDEND TOTALING 90 MILLION NEW YORK ITT CORP SAID IT WILL RECEIVE A 90 MILLION CORPORATE SPECIAL DIVIDEND FROM RAYONIER INC AS PART OF A PREVIOUSLY ANNOUNCED SPINOFF OF THE TIMBER AND FORESTPRODUCTS UNIT IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION ITT SAID THE PAYMENT STEMS FROM A PREVIOUSLY PLANNED RECAPITALIZATION PLAN AT RAYONIER ACCORDING TO AN ITT SPOKESMAN THE RECAPITALIZATION PLAN LEAVES RAYONIER WITH A DEBTTOEQUITY RATIO OF ABOUT 45 WHICH IS COMPARABLE TO OTHER FOREST AND TIMBER INDUSTRY COMPANIES ITT SAID THE CASH PAYMENT WOULD LIKELY GO TOWARD SHAREBUYBACKS THE FILING ALSO DISCLOSED THAT RAYONIER WHICH WILL BE SPUN OFF TO ITT SHAREHOLDERS EARLY IN 1994 WILL INITIALLY PAY A QUARTERLY DIVIDEND OF 18 CENTS A SHARE AMONG RAYONIER'S SEVEN DIRECTORS AS LISTED IN THE FILING RAND V ARASKOG CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITT PAUL G KIRK COUNSEL TO SULLIVAN & WORCESTER A LAW FIRM AND AN ITT DIRECTOR AND RONALD M GROSS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RAYONIER INC AT A LUNCHEON WITH ANALYSTS YESTERDAY ITT ENDORSED ANALYSTS' ESTIMATES FOR 1994 EARNINGS THAT RANGE FROM 670 TO 770 A SHARE AT THE MEETING MR ARASKOG LOOKING AT 1994 SAID HE BELIEVED THE EUROPEAN MARKETS WOULD REMAIN WEAK BUT HE FELT THE US ECONOMY WOULD CONTINUE ITS RECOVERY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ITT SHARES FELL 1375 OR 15 TO CLOSE AT 92125 ANALYSTS SAID THE DECLINE MOST LIKELY REFLECTED PROFITTAKING PRIOR TO THE ANNOUNCEMENT OF THE RAYONIER SPINOFF LAST WEEK THE COMPANY'S STOCK HAD BEEN TRADING AT AROUND 89 A SHARE ITT HAS INTERESTS IN AUTOMOTIVE PRODUCTS HOTELS FINANCIAL SERVICES INSURANCE DEFENSE AND EDUCATION 9312160003 931216 TECHNOLOGY BRISTOLMYERS' TAXOL CLEARED BY FDA PANEL FOR ADVANCED CANCER WASHINGTON AN ADVISORY PANEL TO THE FOOD AND DRUG ADMINISTRATION UNANIMOUSLY RECOMMENDED BRISTOLMYERS SQUIBB CO'S DRUG TAXOL FOR APPROVAL AS A TREATMENT OF LAST RESORT FOR ADVANCED BREAST CANCER THE PANEL'S VOTE AFTER A LONG DEBATE OVER STANDARDS FOR APPROVING BREASTCANCER TREATMENTS ISN'T BINDING ON THE FDA COMMISSIONER BUT SUCH RECOMMENDATIONS TRADITIONALLY ARE GIVEN GREAT WEIGHT IN AWARDING PRODUCTMARKETING APPROVAL TAXOL DERIVED FROM NEEDLES OF THE PACIFIC YEW TREE IS ALREADY MARKETED FOR TREATMENT OF ADVANCED OVARIAN CANCER NEITHER THE FDA NOR BRISTOLMYERS OFFICIALS COULD BE REACHED FOR COMMENT ON THE RECOMMENDATION LATE YESTERDAY ACCORDING TO FEDERAL FILINGS INC A NEWS SERVICE THE FDA'S ONCOLOGIC DRUGS ADVISORY COMMITTEE SPECIFIED THAT TAXOL BE APPROVED FOR CANCER THAT HAS SPREAD BEYOND THE BREAST AND THAT HAS FAILED TO RESPOND WITHIN SIX MONTHS OF CHEMOTHERAPY TREATMENT THE PANEL SPECIFIED THAT PRIOR CONVENTIONAL TREATMENT MUST HAVE CONTAINED A STANDARD CHEMOTHERAPY REGIMEN WHICH SHOULD INCLUDE ANTHRACYCLINE PLUS AN ADJUVANT DRUG BRISTOL SUBMITTED DATA FROM FOUR TRIALS WHICH DEMONSTRATED 20 TO 30 TUMOR RESPONSE RATES HOWEVER TAXOL ISN'T CONSIDERED A CURE FOR OVARIAN BREAST OR ANY OTHER CANCER ONE OF THESE TRIALS WHICH WAS A STUDY EXAMINING A RANGE OF DIFFERENT DOSES APPARENTLY PROVIDED THE STRENGTH OF EVIDENCE FOR THE ADVISORY PANEL SINCE IT SHOWED EVIDENCE OF TAXOL'S ACTIVITY AGAINST THE CANCER FEDERAL FILINGS SAID THAT AFTER DEBATING DRUGAPPROVAL STANDARDS THE PANEL FELT THAT ACCEPTABLE TUMOR RESPONSE RATES ARE TOO HARD TO QUANTIFY BECAUSE THEY ARE SPECIFIC TO THE INDIVIDUAL PATIENT 9312160002 931216 WHO'S NEWS NOSTALGIA NETWORK NAMES FRANK H JETT TO THREE TOP POSTS LOS ANGELES NOSTALGIA NETWORK INC NAMED FRANK H JETT PRESIDENT CHIEF OPERATING OFFICER AND TREASURER AND ALSO SAID IT ELIMINATED ITS LONGTERM DEBT MR JETT 54 YEARS OLD WAS PREVIOUSLY SENIOR VICE PRESIDENT OF PROGRAMMING AND PRODUCTION HE SUCCEEDS CHARLES V BUSH 53 WHO IS RESIGNING EFFECTIVE JAN 3 TO ACCEPT ANOTHER BUSINESS OPPORTUNITY NOSTALGIA SAID FURTHER DETAILS WEREN'T AVAILABLE MR BUSH WILL CONTINUE AS A DIRECTOR AT NOSTALGIA A 24HOUR CABLE TELEVISION SERVICE MAINLY AIMED AT ADULTS OVER THE AGE OF 45 NOSTALGIA ALSO ISSUED ABOUT 46 MILLION SHARES OF ITS COMMON STOCK TO TIGER COMMUNICATIONS CO ONE OF WHOSE PRINCIPALS IS GARY WINNICK FORMER HEAD OF THE CONVERTIBLEBONDS DEPARTMENT OF THE NOWDEFUNCT DREXEL BURNHAM LAMBERT INC TIGER BASED IN LOS ANGELES EXERCISED WARRANTS AND SURRENDERED CERTAIN NOTES AS PAYMENT FOR THE SHARES THE WARRANTS AND NOTES RELATE TO A LOAN AS A RESULT NOSTALGIA REDUCED ITS LONGTERM OBLIGATIONS BY 83 MILLION AND NOW HAS NO MATERIAL LONGTERM DEBT THE COMPANY'S TOTAL SHARES OUTSTANDING HAVE BEEN INCREASED TO 19 MILLION FROM 144 MILLION INTERNATIONAL FAMILY ENTERTAINMENT INC RECENTLY LAUNCHED A TENDER OFFER FOR NOSTALGIA TO PAY 2 A SHARE FOR COMMON STOCK AND 200 EACH FOR PREFERRED SHARES THE TIGER CONVERSION ESSENTIALLY WOULDN'T AFFECT THE OFFER A NOSTALGIA SPOKESMAN SAID BECAUSE THE WARRANTS COULD BE COVERTED UNDER ITS TERMS INCLUDING THE NEWLY ISSUED SHARES THE TENDER OFFER WOULD HAVE A VALUE OF ABOUT 458 MILLION NOSTALGIA'S BOARD HAS ADVISED SHAREHOLDERS NOT TO ACCEPT THE TENDER OFFER SAYING IT FELT A BETTER PRICE IS POSSIBLE 9312160047 931122 REAL ESTATE EXCLUSIVE' TOWN PANICS AS PLUNGING HOME PRICES SMASH SOCIAL BARRIERS BY ALECIA SWASY STAFF REPORTER OF THE WALL STREET JOURNAL HEATHROW FLA JIM LORDI THOUGHT HE HAD FOUND PARADISE WHEN THE FORMER ELECTRONICSCOMPANY PRESIDENT RETIRED HERE A FEW YEARS AGO HE BOUGHT A HOUSE WITH A SPIRAL STAIRCASE LEADING TO A POOL AND A JACUZZI LIFE REVOLVED AROUND THE GOLF COURSE AND TENNIS COURTS AND SOCIALIZING WITH LIKEMINDED NEIGHBORS BUT STRANGERS HAVE COME TO PARADISE A NEW SECTION OF TOWN CALLED HEATHROW LAKES NOW OFFERS 115000 HOMES WELL WITHIN THE REACH OF PEOPLE THAT MR LORDI AND OTHERS HERE DEEM UNSUITABLE NEIGHBORS MR LORDI WANTS DRASTIC ACTION A BRICK WALL AND A SEPARATE BACK ENTRANCE TO SEGREGATE THE LAKES' HOMES FROM THE ESTATES THE ONLY THING THAT WILL WORK IS SOLID BRICK ACROSS THE STREET MR LORDI SAYS NOTING IT SHOULD BE AT LEAST SIX FEET HIGH WELCOME TO HEATHROW WHICH ALTHOUGH IT MAY BE AN EXTREME EXAMPLE IS BY NO MEANS ATYPICAL ALL ACROSS THE COUNTRY COMMUNITIES ARE IN AN UPHEAVAL ENGENDERED BY THE TURBULENT REALESTATE MARKETS OF THE LAST FIVE YEARS AS PLUNGING PRICES HAVE STRAINED DEVELOPERS AND STRANDED HOMEOWNERS THEY HAVE ALSO MADE ALL SORTS OF COMMUNITIES ACCESSIBLE TO PEOPLE WHO NEVER DREAMED THEY COULD AFFORD THEM AND THE UNSTABLE MARKET HAS PLAYED HOB WITH THAT MOST FUNDAMENTAL TENET OF RESIDENTIAL REAL ESTATE THAT BIRDS OF A FEATHER FLOCK TOGETHER SUBURBAN COMMUNITIES ARE BUILT AROUND THE NOTION THAT THERE'S STABILITY IN PEOPLE AND LAND USES SAYS MARK BALDASSARE A UNIVERSITY OF CALIFORNIA PLANNING EXPERT ONCE THAT CHANGES PEOPLE DEVELOP NIMBY NOT IN MY BACKYARD RESPONSES IT DOESN'T MATTER IF THE NEW NEIGHBORS ARE FAMILIES WITH CHILDREN OR THE HELL'S ANGELS SOME PEOPLE ARE JUST AS UPSET BY MIDDLECLASS PEOPLE MOVING IN OR AN INCINERATOR BURNING NEAR THEIR HOME SAYS AUSTIN JAFFEE A PENN STATE REALESTATE PROFESSOR IN COTO DE CAZA A 4000ACRE DEVELOPMENT THAT STARTED AS ONE OF THE FANCIEST DEVELOPMENTS OF ORANGE COUNTY CALIF RESIDENTS ARE MIFFED THAT HOUSES ARE NOW AUCTIONED FOR HALF WHAT THEY PAID AT PORT LIBERTE NJ OVERLOOKING NEW YORK HARBOR RESIDENTS ONCE EXPECTED THEIR OWN VENICE WITH A YACHT CLUB AND CANALS BUT WITH PORT LIBERTE A VICTIM OF THE THRIFT CRISIS THE SITE COULD HAVE MORE APARTMENT BUILDINGS THAN GRACIOUS HOMES A RECENT US CENSUS BUREAU REPORT SHOWED THAT AMERICANS COMPLAINED MORE ABOUT NEIGHBORS THAN ABOUT CRIME OR TRAFFIC AT HEATHROW IT'S NEIGHBOR AGAINST NEIGHBOR AT THE SWIMMING POOL AND CIVICASSOCIATION MEETINGS SOME HEATHROW RESIDENTS HAVE THREATENED TO PICKET THEIR OWN COMMUNITY TO PROTEST THE NEWCOMERS OTHERS NOW CARRY GUNS TO FEND OFF A FEARED INCREASE IN CRIME THERE IS EVEN TALK ABOUT BUILDING A SEPARATE COUNTRY CLUB FOR THE THOUSANDS OF NEW RESIDENTS EXPECTED TO BUY INTO THE LOWERPRICED HOUSES HEATHROW BEGAN AS THE DREAM OF FROZENFOOD BARON JENO PAULUCCI THE ENTREPRENEUR WHO BUILT BRANDS SUCH AS CHUN KING AND JENO'S PIZZA WANTED TO BUILD A LANDMARK IN THE ORANGE GROVES OF CENTRAL FLORIDA SAYS BONNIE MANJURA WHO WORKED FOR MR PAULUCCI AT HEATHROW CASTLES SPRANG UP ONE HAD A MOAT OTHERS HAD HIDDEN GROTTOES HOME PRICES RANGED UP TO 10 MILLION ALTHOUGH MR PAULUCCI DID OFFER SOME RACQUETCLUB VILLAS AND CONDOS FOR LESS THAN 200000 IN 1987 MR PAULUCCI SOLD A MAJORITY STAKE TO ARVIDA/JMB PARTNERS A CHICAGOBASED HOME BUILDER UNLIKE THE FAMILYRUN PAULUCCI COMPANY ARVIDA WAS MORE AGGRESSIVE NEW AD CAMPAIGNS BEGAN TO EMPHASIZE AFFORDABILITY PLANS WERE UNVEILED FOR HEATHROW LAKES A COMMUNITY OF BOXY HOUSES HEATHROW WENT FROM BEING NEIMAN MARCUS TO WALMART SAYS ED GILBERT WHO WROTE ADS TO REPOSITION HEATHROW ARVIDA SAYS THERE IS MORE GROWTH IN THE MIDDLE MARKET IT EXPECTS TO SELL 143 HEATHROW PROPERTIES THIS YEAR UP FROM 32 IN 1987 STILL MANY RESIDENTS WORRY THAT FINANCIAL PROBLEMS COULD FORCE ARVIDA TO SELL ITS HEATHROW INTERESTS TO YET ANOTHER DEVELOPER ARVIDA SAYS IT'S STAYING NOT THAT ALL HOMEOWNERS WOULD MISS ARVIDA MANY HAVE BEEN FIGHTING THE DEVELOPER EVER SINCE IT UNVEILED PLANS TO GO DOWNSCALE TWO YEARS AGO ABOUT 350 HOMEOWNERS SHOWED UP AT A MEETING THEN TO TRY TO TALK ARVIDA OUT OF BUILDING HEATHROW LAKES MANY THREATENED TO PICKET SOME SUGGESTED BUILDING A WALL WHAT IF WE BUY THE BRICKS ASKED TERRY PYLE A RESIDENT WHO RUNS A REINSURANCE COMPANY HE AND OTHERS FORMED CONCERNED CITIZENS OF HEATHROW EACH TUESDAY NIGHT THE GROUP GATHERED TO PLOT HOW TO STOP ARVIDA IT MET FOR SEVERAL MONTHS BEFORE GIVING UP FEW COULD AGREE ON WHAT TO DO MEANWHILE HEATHROW LAKES ATTRACTED NEWCOMERS LIKE IRENE MCINTYRE A RETIRED BEAUTICIAN WHO MOVED INTO A BUNGALOW ON PADDINGTON AND EVERETT ERICKSON A RETIRED TELEPHONE REPAIRMAN WHO MOVED IN TWO DOORS OVER OTHER NEW ARRIVALS INCLUDED JAMES AND PATSY HAGAN A PHARMACIST AND COMPUTER OPERATOR WHO HAD SAVED FOR 16 YEARS TO BUY THEIR LITTLE STUCCO HOUSE WE DIDN'T THINK WE COULD EVER AFFORD THIS PATSY HAGAN SAYS BUT ALL HAVE PAID A PRICE FOR THEIR UPWARD MOBILITY SOME GOT A WARNING FROM THE ARVIDA SALESPEOPLE THAT THEY MIGHT NOT GET A WARM WELCOME SOME PEOPLE DON'T LIKE OUR HOUSES CLOSE TO THEM MRS HAGAN SAYS SOME PEOPLE HAVE BECOME SO INCENSED IN FACT THAT THEY HAVE MOVED AWAY OR TRIED TO MR LORDI TRIED FOR MORE THAN TWO YEARS TO SELL THE HOUSE HE BOUGHT FOR 385000 WHICH IS EXTRA TOUGH IN HEATHROW SINCE THE POSTING OF FOR SALE SIGNS ON FRONT LAWNS IS PROHIBITED MR PYLE PUT HIS HOUSE ON THE MARKET TOO GETTING AROUND THE SIGN BAN BY PUTTING THIS SIGN IN HIS CAR WINDOW CAR FOR SALE 250000 HOUSE INCLUDED HIS HOME DIDN'T SELL EITHER RESENTFUL MANY OF THE ORIGINAL RESIDENTS HAVE STARTED STICKING TO THEMSELVES GILDA CHACEY A SELFDESCRIBED SOCIALITE QUIT THE HEATHROW WOMEN'S CLUB SHE FOUNDED IN 1987 I WANTED A SOCIAL CLUB WITH TEA IN THE AFTERNOON I WANTED IT TO BE EXCLUSIVE SHE EXPLAINS THERE HAVE BEEN EFFORTS TOO TO KEEP THE NEWCOMERS OUT OF THE HEATHROW RACQUET AND COUNTRY CLUB TO MAKE THE PLACE MORE ACCESSIBLE TO THE NEWCOMERS ARVIDA LOWERED THE MEMBERSHIP FEE TO 7500 FROM 25000 AND IT ADDED 595 TACO DINNERS ON TUESDAYS SECURITY HAS BECOME A BIG WORRY FOR WEALTHIER RESIDENTS DESPITE CLAIMS BY THE SEMINOLE COUNTY SHERIFF'S DEPARTMENT THAT HEATHROW REMAINS ONE OF THE SAFEST COMMUNITIES IN CENTRAL FLORIDA EARLY HEATHROW ADS CALLED THE SECURITY SYSTEM COMPARABLE TO THE PENTAGON BUT NOW RESIDENTS COMPLAIN THAT THREE OF THE COMMUNITY'S FIVE GATES ARE LEFT UNGUARDED GATES STAY OPEN TOO LONG THEY SAY AND PIZZADELIVERY TRUCKS GET IN ALL TOO EASILY ALL OF THIS HAS REFUELED DEBATES ABOUT THE NEED FOR A WALL AND A SEPARATE ENTRANCE FOR THE ESTATE SECTION SOME ARE STILL PUSHING FOR IT BUT OTHERS ARE RESIGNED THERE WILL BE MORE OF THEM THAN US MR PYLE SAYS SO IF HE IS ABLE TO SELL HIS HOUSE HE KNOWS EXACTLY WHERE HE WILL GO TO STONEBRIDGE A BIGGER EVEN MORE LUXURIOUS SECTION THAT ARVIDA IS BUILDING ACROSS THE STREET FROM HEATHROW HOMES IN HEATHROW FLA HAVE BEEN PRICED AS HIGH AS 2 MILLION AN ARTICLE NOV 22 SAID THE PRICES WERE AS HIGH AS 10 MILLION THE HIGHER AMOUNT WAS A PROJECTION BY THE ORIGINAL DEVELOPER OF HEATHROW 9312160015 931118 NEAL PETERSON'S GOAL IS TO DOMESTICATE THE WILD PAWPAW SEEDY AND A BIT THINSKINNED FRUIT HAD HIT THE SKIDS NOW IS REHABILITATION TIME BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL KEEDYSVILLE MD THE PAWPAW HARVEST IS IN THE FRUIT HAS GONE TO MARKET WHAT LITTLE MARKET THERE IS AND THE JOHNNY APPLESEED OF PAWPAWS IS WAXING POETIC THE TASTE IS A SYMPHONY OF FLAVORS IN YOUR MOUTH IT'S LIKE THE FINEST CUSTARD YOU EVER ATE HE SAYS AFTER DOWNING AN ESPECIALLY DELICIOUS PAWPAW HE ADDS THE WORLD IS DEFINITELY A NICER PLACE TO BE IN HE IS R NEAL PETERSON A 45YEAROLD AGRICULTURAL ECONOMIST WHO HAS SPENT MUCH OF HIS FREE TIME SINCE 1979 STUDYING THE FRUIT THE WASHINGTON DC RESIDENT GREW UP EATING WILD PAWPAWS IN WEST VIRGINIA AND DEVELOPED A SCIENTIFIC INTEREST IN THE TREE WHEN HE WAS IN COLLEGE STUDYING PLANT GENETICS HE TOOK PITY ON THE POOR PAWPAW AROUND THE TURN OF THE CENTURY THE FRUIT NATIVE TO THE CENTRAL AND SOUTHERN US HAD ACTUALLY BEEN QUITE POPULAR A CHILDREN'S SONG WAS WRITTEN ABOUT IT SAMPLE LYRIC WHERE OH WHERE IS PRETTY LITTLE SALLY WAY DOWN YONDER IN THE PAW PAW PATCH TOWNS AND STREAMS IN MICHIGAN OHIO WEST VIRGINIA AND KENTUCKY WERE NAMED AFTER IT AND DURING THE DEPRESSION SOME PEOPLE WHO COULDN'T AFFORD TO BUY FOOD LIVED ON THE FRUIT OF THE PAWPAW BUT THE PAWPAW WENT INTO DECLINE AS THE BANANA BECAME VERY POPULAR IN THE US DURING WORLD WAR II AND AS THE POPULATION BECAME MORE URBAN AND THUS LESS LIKELY TO ENCOUNTER WILD PAWPAW TREES THE PAWPAW A FRUIT OF THE CUSTARDAPPLE FAMILY THAT RESEMBLES A GREEN POTATO OR A MANGO WITH BRIGHT YELLOW FLESH ALSO HAS SOME BUILTIN COMMERCIAL DISADVANTAGES IT IS THINSKINNED AND DOESN'T TRAVEL WELL I THOUGHT THIS WAS ONE OF THE MOST OVERLOOKED TREES IN THIS COUNTRY MR PETERSON SAYS IT HASN'T BEEN DOMESTICATED IT HASN'T RECEIVED THOUSANDS OF YEARS OF BREEDING LIKE APPLES AND APRICOTS WEEKENDS FROM MARCH TO OCTOBER MR PETERSON GENERALLY CAN BE FOUND IN ONE OF HIS THREE MARYLAND PAWPAW ORCHARDS TWO OF THEM ON LAND BELONGING TO THE UNIVERSITY OF MARYLAND THE THIRD IS ON PROPERTY HE LEASES HE HAS MORE THAN 1200 TREES ONCE A YEAR STARTING IN LATE AUGUST HE TAKES A SIXWEEK UNPAID LEAVE OF ABSENCE FROM HIS DESK JOB WITH THE FEDERAL GOVERNMENT AND REPAIRS TO THE PAWPAW PATCH FOR THE HARVEST I'M TASTING PAWPAWS FROM SUNUP TO SUNDOWN MR PETERSON SAYS THIS YEAR HE AND THREE VOLUNTEERS PICKED THE FRUIT OF 50 TREES THE BEST TREES CAN PRODUCE 60 PIECES OF FRUIT MR PETERSON FIGURES HE SAMPLED 1200 HIS PROCESS NOT UNLIKE AN OENOPHILE'S IS SIMPLE FIRST HE SNIFFS THE FRUIT TO CHECK ITS AROMA THEN HE SLICES IT OPEN AND SNIFFS AGAIN NEXT HE TASTES AND SAVORS IT FOR A MOMENT BEFORE SPITTING IT OUT A SALTINE CRACKER WITH A SIP OF WATER IS ENOUGH TO CLEANSE HIS PALATE FOR THE NEXT PAWPAW I DON'T SWALLOW IT HE SAYS IT HAS TO BE A REALLY TOPNOTCH PAWPAW FOR ME TO BOTHER EATING IT OUT IN ORCHARD NO 2 AT THE UNIVERSITY OF MARYLAND EXPERIMENT STATION HERE IN KEEDYSVILLE MR PETERSON SURVEYS HIS TREES BY LATE OCTOBER ALL THE LEAVES HAVE FALLEN BUT A FEW SOLITARY PAWPAWS STILL CLING TO THE SKELETAL BRANCHES YOU HAVE TO GROW THOUSANDS IN ORDER TO FIND ONE OR TWO TRULY SUPERIOR INDIVIDUALS MR PETERSON SAYS IT'S LIKE AN OLYMPIC ATHLETE A RARE INDIVIDUAL A LIGHT RAIN FALLS AS MR PETERSON WEARING AN OLD TAUPE FELT HAT AND WELLINGTON BOOTS POINTS TO THE PLACES WHERE LOWHANGING BRANCHES WILL HAVE TO BE PRUNED DURING THE SUMMER HE SAYS THE ORCHARD CAN BECOME A JUNGLE AS THE LONG BRANCHES DROOP DOWN AND ACROSS THE ROWS SOMETIMES SNAPPING FROM THE WEIGHT OF THE FRUIT THE TALL LANKY HORTICULTURIST WALKS OVER TO THE FOURTH ROW IN THE ORCHARD DOESN'T LOOK LIKE MUCH DOES IT HE SAYS DIRECTING ATTENTION TO THE SECOND TREE FROM THE RIGHT BUT THAT TREE NO 42 IS HIS SUPERSTAR THE NINEYEAROLD PAWPAW WHICH IS 10 FEET TALL HAS PRODUCED A GOOD YIELD OF FRUIT WITH A SWEET SMOOTH TASTE AND ONE OTHER ATTRIBUTE THAT MIGHT GIVE IT COMMERCIAL POTENTIAL IT IS LESS THAN 4 SEEDS THROUGH PROPER SELECTION AND BREEDING MR PETERSON HOPES ONE DAY TO GROW A PAWPAW THAT HAS FEWER OF THOSE LARGE REDDISHBROWN SEEDS WHICH ARE ANNOYINGLY NUMEROUS AND CAN ACCOUNT FOR ABOUT 20 OF A FRUIT'S WEIGHT RIGHT NOW HARVESTED PAWPAWS PICKED SOFT OR TAKEN WHEN THEY FALL FROM THE TREE KEEP FOR ONLY ABOUT TWO DAYS WHILE THE FRUIT IS STILL A LONG WAY FROM COMMERCIAL EXPLOITATION MR PETERSON HAS FAITH CITING THE APPLE AS HIS INSPIRATION APPLES IN THE WILD WEREN'T THAT MUCH DIFFERENT FROM CRAB APPLES THEY WERE SMALL AND SOUR HE SAYS IF YOU MAKE THE LEAP OF IMAGINATION FROM CRAB APPLE TO GOLDEN DELICIOUS YOU CAN SEE THE RANGE IN TASTE THAT CAN DEVELOP IN ONE FRUIT TAKE THAT SAME LEAP OF IMAGINATION WITH THE PAWPAW WHICH IS ALREADY PRETTY FABULOUS AND YOU REALIZE YOU'VE GOT SOMETHING HE SAYS MR PETERSON ISN'T THE ONLY HORTICULTURIST DOING PAWPAW WORK KENTUCKY STATE UNIVERSITY HAS A FULLTIME PAWPAW RESEARCHER THE UNIVERSITY OF GEORGIA IS CONDUCTING STUDIES IN 1995 15 UNIVERSITIES WILL BEGIN REGIONAL TESTS TO DETERMINE HOW PAWPAW TREES GROW IN DIFFERENT SOILS AND CLIMATES IT IS ALREADY KNOWN THAT THE PAWPAW IS EXTREMELY HARDY AND CAN WITHSTAND TEMPERATURES AS LOW AS 31 DEGREES BELOW ZERO THEY DON'T CALL IT THE MICHIGAN BANANA FOR NOTHING SAYS MICHAEL DOLAN AN OWNER OF BURNT RIDGE NURSERY IN ONALASKA WASH A PHARMACOLOGY PROFESSOR AT PURDUE UNIVERSITY IS STUDYING PAWPAW BARK FOR ITS EVIDENT PESTICIDAL AND MEDICINAL PROPERTIES ABOUT FIVE YEARS AGO MR PETERSON SET UP THE PAWPAW FOUNDATION TO FURTHER THE SCIENTIFIC STUDY OF HIS FAVORITE FRUIT THE GROUP HAS ABOUT 100 MEMBERS RETIRED BOTANISTS OFFICE MANAGERS LAWYERS AND FRIENDS OF MR PETERSON THEY BELIEVE THAT IF A QUEERLOOKING FRUIT BROUGHT OVER FROM NEW ZEALAND COULD BECOME SUCH A HIT HERE AS THE KIWI TURNED OUT TO BE THEN AN EXOTIC FRUIT INDIGENOUS TO AMERICA OUGHT TO HAVE A CHANCE BUT THE PAWPAW FOUNDATION WHICH OPERATES ON A 6000 BUDGET HASN'T BEEN ABLE TO INTEREST ANYBODY IN ENDOWING IT BECAUSE THERE IS NO PAWPAW INDUSTRY IT'S A PARADOX MR PETERSON SAYS YOU NEED RESEARCH TO DEVELOP AN INDUSTRY BUT YOU NEED AN INDUSTRY TO SUPPORT THE RESEARCH WHILE MR PETERSON WOULD LIKE TO DEVELOP COMMERCIAL DEMAND HE WANTS IT TO GROW GRADUALLY NO PRODUCE BROKERS DISTRIBUTE THE FRUIT NOR ARE THERE COMMERCIAL ORCHARDS WHAT IS AVAILABLE IS PICKED IN THE WILD A HANDFUL OF HOTEL CHEFS IN MICHIGAN MASSACHUSETTS AND MARYLAND DO USE THE PAWPAW IN THEIR RECIPES WHEN THE FRUIT IS IN SEASON SOME HAVE MADE ICE CREAMS PUDDINGS AND EVEN A PAWPAWFLAVORED VINAIGRETTE DRESSING GUY REINBOLD EXECUTIVE CHEF FOR THE STOUFFER HARBOR PLACE HOTEL IN BALTIMORE CREATED A PAWPAW SALSA AND PAWPAW CHUTNEY TO GO WITH SOME OF HIS SEAFOOD AND CHICKEN DISHES THE FLAVOR BLENDS WITH ANYTHING MR REINBOLD SAYS IT'S PRETTY VERSATILE BUT YOU HAVE TO USE IT FAST YOU CAN'T BUY 30 CASES OF IT AND HOPE IT WILL SELL SEE RELATED LETTER LETTERS TO THE EDITOR FINICKY HOGS WSJ DEC 16 1993 9311180145 YY93 MM12 9312160014 931118 INVESTIGATION OF MET LIFE'S SALES TACTICS IS BEING EXPANDED BY TEXAS REGULATORS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL TEXAS HAS BROADENED ITS INQUIRY INTO THE SALES PRACTICES OF METROPOLITAN LIFE INSURANCE CO BY LOOKING INTO THE ACTIONS OF COMPANY AGENTS IN HOUSTON DALLAS AND OTHER TEXAS CITIES UNTIL NOW INSURANCE REGULATORS IN TEXAS AS WELL AS FLORIDA HAVE FOCUSED THEIR INQUIRIES ON ALLEGEDLY MISLEADING SALES TACTICS BY MET LIFE'S OFFICE IN TAMPA FLA THE COMPANY'S LARGEST SALES OFFICE BUT TEXAS INSURANCE COMMISSIONER ROBERT HUNTER SAID THE INVESTIGATION IN HIS STATE HAS BEEN EXPANDED BECAUSE CUSTOMERS THERE COMPLAINED THEY WERE MISLED BY TEXAS AGENTS INTO BUYING HIGHCOMMISSION LIFE INSURANCE POLICIES WHICH WERE DESCRIBED TO THEM AS RETIREMENT OR SAVINGS ACCOUNTS NEW YORKBASED MET LIFE ALSO IS BEING INVESTIGATED BY PENNSYLVANIA INSURANCE REGULATORS ABOUT WHETHER COMMISSIONHUNGRY MET AGENTS IN THAT STATE MISLED POLICYHOLDERS INTO BUYING MORE EXPENSIVE POLICIES BY USING THE EQUITY IN THEIR OLD POLICIES A PRACTICE KNOWN AS TWISTING OR CHURNING MET SAID IT HAS FIRED FOUR AGENTS IN THE PITTSBURGH AREA AS A RESULT OF THE PROBE THE LATEST INVESTIGATIONS SUGGEST MET LIFE'S PUBLICRELATIONS PROBLEMS OVER SALES TACTICS ARE GROWING THE COMPANY ALREADY PAID 6 MILLION IN REFUNDS TO POLICYHOLDERS AROUND THE COUNTRY WHO BOUGHT LIFE INSURANCE FROM THE TAMPA OFFICE MET LIFE BELIEVES IT COULD PAY AS MUCH AS 7 MILLION BEFORE THE MATTER IN THAT STATE IS RESOLVED MET LIFE DENIES THERE ARE ANY WIDESPREAD PROBLEMS WITH ITS SALES PRACTICES AS FOR THE TEXAS INQUIRY A SPOKESMAN SAID WE DON'T HAVE ANY EVIDENCE THAT POLICYHOLDERS IN TEXAS DIDN'T KNOW WHAT THEY WERE BUYING TEXAS INSURANCE COMMISSIONER HUNTER A FORMER CONSUMER ADVOCATE WHO TOOK OFFICE LESS THAN THREE WEEKS AGO APPEARS INTENT ON DETERMINING HOW MANY TEXAS POLICYHOLDERS ARE INVOLVED THE INSURANCE DEPARTMENT IS ADVERTISING A TOLLFREE PHONE NUMBER FOR ANY POLICYHOLDER WHO BOUGHT A RETIREMENT ACCOUNT AFTER RECEIVING A MAIL SOLICITATION FROM MET LIFE THE DEPARTMENT IS LOOKING INTO MET'S OFFICES IN HOUSTON DALLAS SAN ANTONIO AUSTIN AND COLLEGE STATION THE TEXAS INSURANCE DEPARTMENT COULD ORDER MET LIFE TO REIMBURSE ALL AFFECTED POLICYHOLDERS AND FINE THE COMPANY AS MUCH AS 25000 FOR EACH VIOLATION THE DEPARTMENT SAID THAT IN AN EXTREME CASE IT COULD REVOKE MET'S LICENSE TO DO BUSINESS IN THE STATE AS IN THE FLORIDA INVESTIGATION TEXAS IS LOOKING INTO INSURANCE POLICIES THAT WERE SOLD PRIMARILY TO NURSES MET AGENTS ALLEGEDLY MISREPRESENTED INSURANCE POLICIES AS RETIREMENT PLANS THAT CARRY NO SALES CHARGES CUSTOMERS HAVE COMPLAINED THAT THEY WOULD NEVER HAVE BOUGHT THE POLICIES HAD THEY KNOWN THEY WERE BUYING LIFE INSURANCE WHICH CARRIES A HIGH COMMISSION IN ADDITION TO THE COSTS OF BUYING A DEATH BENEFIT AS REPORTED A TEXAS INSURANCE OFFICIAL WARNED MET IN 1990 ABOUT THE SALES TACTICS OF THE TAMPA OFFICE BUT MET LIFE FAILED TO CRACK DOWN ON THE PRACTICES TEXAS HADN'T PREVIOUSLY WARNED MET ABOUT PROBLEMS IN THE TEXAS OFFICES IN FLORIDA ATTORNEY THOMAS TEW IS SPEARHEADING THAT STATE'S INVESTIGATION INTO MET FLORIDA INSURANCE COMMISSIONER THOMAS GALLAGHER SAYS HE WILL DECIDE WHAT ACTIONS TO TAKE AGAINST THE COMPANY AFTER HE GETS MR TEW'S REPORT THE ALLEGATIONS AGAINST MET HAVE FUELED INTEREST IN CONGRESS ABOUT FEDERAL REGULATION OF THE LIFE INSURANCE INDUSTRY WHICH CURRENTLY IS REGULATED BY STATES IN A SPEECH YESTERDAY BEFORE THE AMERICAN COUNCIL OF LIFE INSURANCE A TRADE GROUP SEN HOWARD METZENBAUM D OHIO CRITICIZED MET LIFE AND PROMISED TO INTRODUCE A BILL DESIGNED TO ATTACK WHAT HE CALLED UNFAIR SALES PRACTICES IF THIS CAN HAPPEN TO MET IT CAN HAPPEN TO ANYBODY MR METZENBAUM SAID THIS IS SIMPLY SHAMEFUL SEE RELATED LETTER LETTERS TO THE EDITOR BIG APPETITES WSJ DEC 16 1993 9311180162 YY93 MM12 9312160001 931122 CORPORATE FOCUS TELEDYNE STRUGGLES TO RECAPTURE MAGIC OF YESTERDAY FINANCIAL PICTURE REMAINS SICKLY DESPITE EFFORTS TO STIMULATE GROWTH BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES INSIDE TELEDYNE INC'S HIGHRISE OFFICES OVERLOOKING BEVERLY HILLS AN ACUTE SENSE OF FRUSTRATION PERMEATES TOP MANAGEMENT WHILE SENIOR EXECUTIVES BOAST ABOUT A NEW STRATEGY TO CUT COSTS AND STIMULATE ROBUST GROWTH OF NONDEFENSE BUSINESSES TELEDYNE'S OVERALL FINANCIAL PICTURE REMAINS SICKLY PENTAGON ORDERS ARE WAY DOWN SALES OF CONSUMER AND INDUSTRIAL PRODUCTS HAVE BEEN LACKLUSTER AT BEST WHILE INTERNATIONAL OPERATIONS WHICH ARE SUPPOSED TO FUEL ITS GROWTH IN THE 1990S HAVEN'T FARED MUCH BETTER AT THE SAME TIME NAGGING LEGAL DISPUTES OVER A BEVY OF ALLEGATIONS OF DEFRAUDING THE PENTAGON CONTINUE TO DIVERT MANAGEMENT'S ATTENTION DRAIN RESOURCES AND SAP CORPORATE MORALE TRYING TO CONVINCE CRITICS OF ITS COMMITMENT TO CHANGE TELEDYNE EARLIER THIS YEAR ANNOUNCED A MAJOR REORGANIZATION THAT PRUNED MANAGEMENT AND CONSOLIDATED MORE THAN 60 OPERATING COMPANIES INTO A MORE EFFICIENT 21 CHAIRMAN WILLIAM RUTLEDGE A 23YEAR TELEDYNE VETERAN WHO TOOK OVER THE TOP SPOT AT THE PEAK OF THE COMPANY'S DIFFICULTIES LAST MARCH SAYS THE MOVES ARE INTENDED TO MAKE THE FIRM MORE COMPETITIVE INTERNATIONALLY SOME OF OUR COMPANIES WERE SO SMALL HE ACKNOWLEDGES THEY WEREN'T ABLE TO GET THE BEST MOST CAPABLE PEOPLE TO RUN THEM NEW STRUCTURES AND NEW PRIORITIES HOWEVER HAVEN'T YET BEEN REFLECTED ON THE BOTTOM LINE AT TELEDYNE'S ECLECTIC 1970SVINTAGE MIX OF BUSINESSES WHICH RANGE FROM WATER PIK CONSUMER PRODUCTS TO SPECIALTY METALS THE COMPANY POSTED A NINEMONTH NET LOSS OF 1322 MILLION OR 239 A SHARE WHICH INCLUDED MORE THAN 185 MILLION IN NEGATIVE ADJUSTMENTS FOR ACCOUNTING CHANGES STILL OPERATING PROFITS AND SALES LAGGED BEHIND YEAREARLIER LEVELS IN MOST CATEGORIES INCOME FROM CONSUMER LINES FOR EXAMPLE SLID 28 ON FLAT SALES AND THE SLUGGISH ECONOMY HIT ITS BIGGEST INDUSTRIAL AND METALS MARKETS ESPECIALLY HARD TELEDYNE'S DEFENSERELATED BUSINESSES ARE SHRINKING MORE RAPIDLY THAN THOSE OF MOST OF THE PRIME CONTRACTORS IT SUPPLIES WITH NINEMONTH INCOME BEFORE TAXES DOWN 51 WHILE MR RUTLEDGE INSISTS THAT THE COMPANY'S CORE MILITARY MARKETS REMAIN SOLID AND MAY PROVIDE OPPORTUNITIES FOR SIGNIFICANT GROWTH OR EVEN ACQUISITIONS PRESIDENT DONALD RICE SAYS I WOULD BE AMAZED IF OUR DEFENSE SHARE IS AS LARGE IN THE YEAR 2000 AS IT IS TODAY PRODUCT DIVERSITY AND ITS RECORD OF CONVERTING MILITARY TECHNOLOGY TO CIVILIAN USES GIVE THE COMPANY AN EDGE OVER OTHER DEFENSE SUPPLIERS TELEDYNE ARGUES EXPLOSIVE DEVICES IT DEVELOPED TO PROPEL EJECTION SEATS ON JET FIGHTERS NOW HELP INFLATE AUTOMOBILE AIR BAGS AND MILITARY MICROWAVE TECHNOLOGY IS BEING ADAPTED TO LINK COMPUTERS IN SKYSCRAPERS WITHOUT HAVING TO INSTALL WIRING SO FAR OUTSIDERS REMAIN SKEPTICAL TELEDYNE IS NOT GENERATING ANYWHERE NEAR THE KIND OF CASH FLOW THAT MADE IT A DARLING OF INVESTORS DURING ITS HEYDAY IN THE 1980S SAYS ROBERT HANISEE WHO USED TO TRACK THE COMPANY AS AN ANALYST AND NOW KEEPS AN EYE ON IT AS DIRECTOR OF EQUITY RESEARCH FOR LOS ANGELESBASED TRUST CO OF THE WEST IT HAS A RATHER HOHUM MIX OF BUSINESSES THAT DON'T GIVE IT A BIG GROWTH OPPORTUNITY BUT FIRST BOSTON ANALYST JACK BLACKSTOCK SEES SOME BRIGHT SIGNS NOW I THINK I SEE THE BEGINNING OF A DIFFERENCE HE SAYS IN THE PAST I NEVER PERCEIVED ANY CHANGE GOING ON SINCE 1989 TELEDYNE HAS BEEN THE FOCUS OF NO FEWER THAN EIGHT SEPARATE FEDERAL CRIMINAL INVESTIGATIONS AND AT LEAST THAT MANY CIVIL PROBES RANGING FROM ALLEGATIONS OF PHONY TESTING OF SPACESHUTTLE PARTS AND ARMY HELICOPTER INSTRUMENT PANELS TO DISSIDENT SHAREHOLDER CLAIMS THAT IT STUFFED BRICKS INSTEAD OF WIRING INTO ELECTRONIC BLACK BOXES SHIPPED TO THE NAVY TELEDYNE HAS ADMITTED GUILT IN A NUMBER OF INSTANCES AND HAS ALREADY AGREED TO PAY UP TO 45 MILLION IN FINES PENALTIES AND CIVIL SETTLEMENTS ONE UNIT REMAINS SUSPENDED FROM BIDDING ON GOVERNMENT CONTRACTS BUT FEDERAL RESISTANCE TO A COMPREHENSIVE SETTLEMENT OF STILLPENDING CLAIMS HAS BEEN A MAJOR DISAPPOINTMENT TO THE COMPANY TELEDYNE EARLIER THIS YEAR HIRED THE POLITICALLY SAVVY LOS ANGELES LAW FIRM OF IRELL & MANELLA TO HELP NEGOTIATE SUCH A PACKAGE EVEN IF IT ENTAILED PAYING TENS OF MILLIONS OF ADDITIONAL DOLLARS TO THE US TREASURY SETTLEMENT TALKS HAVE BOGGED DOWN PARTLY BECAUSE GOVERNMENT LAWYERS DON'T WANT TO SIGN ANY AGREEMENT WHILE FEDERAL BUREAU OF INVESTIGATION AGENTS CONTINUE TO RECEIVE NEW TIPS ABOUT PURPORTED CORPORATE TRANSGRESSIONS ACCORDING TO LAWENFORCEMENT OFFICIALS HOW DID THE HIGHFLYING CONGLOMERATE DOMINATED UNTIL 1990 BY LEGENDARY DEALMAKER HENRY SINGLETON END UP IN SUCH A PREDICAMENT THE ANSWER TO A LARGE EXTENT RELATES TO THE EXTRAORDINARY AUTONOMY LINE MANAGERS ENJOYED OVER THE YEARS ANOTHER REASON LAWENFORCEMENT OFFICIALS SUGGEST IS TELEDYNE'S SLOW RESPONSE TO THE FLURRY OF HIGHLY PUBLICIZED FEDERAL PROBES IT TOOK THREE YEARS TO EXTEND AN EARLY ETHICS PROGRAM THROUGHOUT THE COMPANY MR RICE A FORMER AIR FORCE SECRETARY GROUSES THAT THE GOVERNMENT STILL HASN'T MOVED ON TO OTHER TARGETS EVEN IN THE WAKE OF FOUR SEPARATE US ATTORNEY OFFICES HITTING TELEDYNE OR ITS OFFICIALS WITH CRIMINAL CHARGES AFTER YEARS OF CONDUCTING INTERNAL REVIEWS BEEFING UP COMPANY ETHICS CODES AND DISCHARGING VIOLATORS AN EXASPERATED MR RICE SAYS THE ISSUE COMES DOWN TO A QUESTION OF WHAT MORE CAN YOU DO TOGETHER MR RICE AND MR RUTLEDGE HAVE EMBARKED ON A DAUNTING PROJECT THEIR TEAM IS REVIEWING EVERY SINGLE CONTRACT AND AGREEMENT MILLIONS OF PAGES OF DOCUMENTS OVERALL FROM PRICING MINUTIAE TO TECHNICAL SPECIFICATIONS TO ENSURE THAT TELEDYNE UNITS ARE LIVING UP TO ALL THEIR PROMISES MR RICE SAYS MANAGEMENT NEEDS TO REASSURE ITSELF THAT IF THERE'S ANYTHING ELSE OUT THERE THAT COULD HURT THE COMPANY WE'RE DOING OUR ABSOLUTE UTMOST TO FIND IT THE COMPANY'S COMBATIVE STREAK HASN'T DISAPPEARED COMPLETELY IT DEFENDS ACTIONS LEADING UP TO A SUBSIDIARY'S GUILTY PLEA LAST SUMMER FOR PAYMENT OF ILLEGAL COMMISSIONS TO A CONSULTANT IN TAIWAN TELEDYNE CHARACTERIZES THOSE VIOLATIONS AS OLD BEHAVIOR AND STRESSES THAT IT UNCOVERED THEM ON ITS OWN AND IS DETERMINED TO AVOID SIMILAR MISTAKES FEDERAL INVESTIGATORS PAINT A DIFFERENT PICTURE JUST BEFORE THE GUILTY PLEA THE COMPANY DECIDED TO LAY OFF TED IZEN A HIGHRANKING MARKETING EXECUTIVE OF THE UNIT WHO WAS ONE OF THE GOVERNMENT'S MAIN WITNESSES IN UNCOVERING THE ACTIVITIES OF THE TAIWANESE MIDDLEMAN A TELEDYNE SPOKESWOMAN SAYS HIS DISMISSAL WAS PART OF THE OVERALL COMPANY REORGANIZATION AND MR IZEN SAYS HE DOESN'T FEEL SINGLED OUT FOR HARSH TREATMENT LAWENFORCEMENT OFFICIALS ON THE OTHER HAND CONTEND HE WAS FIRED AS A PENALTY FOR HIS COOPERATION AND COUPLED WITH PROMOTIONS OF OFFICIALS WHO REFUSED TO COOPERATE WITH THE INVESTIGATION THE OFFICIALS SAY TELEDYNE INTENDED TO FRIGHTEN OTHER POTENTIAL WHISTLEBLOWERS INTO STAYING QUIET SEE RELATED LETTER LETTERS TO THE EDITOR TELEDYNE'S STATEMENT ON WHISTLEBLOWING WSJ DEC 16 1993 9311220095 YY93 MM12 9312150159 931215 MCDONNELL US REACH ACCORD ON C17 COSTS MILITARY JET MAKER TO SETTLE FOR UNDER 400 MILLION FAR LESS THAN CLAIMED BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP WHICH HAS CONTENDED IT WAS OWED ABOUT 155 BILLION BY THE MILITARY FOR CHANGES ORDERED ON THE TROUBLED C17 TRANSPORT IS NOW EXPECTED TO SETTLE FOR LESS THAN 400 MILLION AS PART OF THE DEAL STRUCK IN THREE MONTHS OF TALKS INCLUDING A MEETING YESTERDAY BETWEEN THE PENTAGON'S TOP ACQUISITION OFFICIAL AND JOHN MCDONNELL COMPANY CHAIRMAN THE ST LOUISBASED CONTRACTOR IS LIKELY TO AGREE TO DROP ALL CLAIMS OUTSTANDING AND TO REINVEST SOME OR ALL THE MONEY IT GETS IN MODERNIZING C17 DEVELOPMENT AND PRODUCTION THE COMPANY HAD BEEN RELUCTANT TO SCALE BACK ITS CLAIMS SO SHARPLY BUT RELENTED BECAUSE SAYS ONE PERSON FAMILIAR WITH THE MCDONNELL POSITION YOU DO WHAT YOU NEED TO TO SAVE THE PROGRAM SEVERAL OTHER PEOPLE INCLUDING AN ADMINISTRATION OFFICIAL CONFIRMED THE AGREEMENT A LONGAWAITED PACT ON THE CLAIMS ISSUE IS EXPECTED TO BE AMONG THE ANNOUNCEMENTS TODAY DURING A C17 NEWS BRIEFING SCHEDULED BY DEFENSE SECRETARY LES ASPIN AND JOHN DEUTCH HIS ACQUISITION CHIEF HAVING WRAPPED UP A VARIETY OF C17 STUDIES ORDERED EARLIER THIS YEAR MESSRS ASPIN AND DEUTCH ARE ALSO EXPECTED TO ENDORSE PUBLICLY THE PURCHASE OF SIX C17 TRANSPORTS ANNUALLY FOR THE NEXT TWO YEARS AND THE FORMAL START OF COMPETITION TO DETERMINE WHETHER COMMERCIAL JETLINERS OR THE C5B BUILT BY LOCKHEED CORP WILL HELP FILL THE NATION'S NEED FOR MILITARY CARGO AND TROOPTRANSPORT JETS THE CLAIMS ISSUE HAS BEEN THE LAST LARGE OBSTACLE AS GOVERNMENT AND COMPANY OFFICIALS HAVE TRIED TO RESOLVE PROBLEMS WITH THE TROUBLED C17 PROGRAM THE HIGHLY ADVANCED TRANSPORT IS UNIQUE BECAUSE IT CAN HAUL HEAVY EQUIPMENT SUCH AS TANKS INTO AREAS WITH SHORT UNDERDEVELOPED RUNWAYS THE C17 PROGRAM HAS BEEN HURT BY MORE THAN 1 BILLION IN COST OVERRUNS AND DEVELOPMENT PROBLEMS THAT HAVE ROUSED POLITICAL OPPONENTS OF THE JET IN CONGRESS MR DEUTCH HAS BEEN AIMING TO PUT THE COMPANY ON A PROBATIONSTYLE PROGRAM UNDER WHICH C17 ACQUISITIONS COULD BE CUT OFF AT 40 JETS INSTEAD OF THE 120 JETS INITIALLY ENVISIONED AT A TOTAL COST OF ABOUT 40 BILLION BUT SOME PROPONENTS OF THE C17 SUGGEST THAT IN AGREEING TO REINVEST THE 400 MILLION TO BE RECEIVED FROM THE GOVERNMENT MCDONNELL DOUGLAS WILL HELP ENSURE THAT MORE THAN 40 JETS ARE ULTIMATELY PURCHASED THE COMPANY ALREADY HAS BEGUN PULLING TOGETHER MAJOR SUBASSEMBLIES FOR THE 20TH C17 FOR THE AIR FORCE MCDONNELL DOUGLAS OFFICIALS HAVE DECLINED TO COMMENT ON THE NEGOTIATIONS THE EFFECT OF THE NEW AGREEMENT ON THE COMPANY'S FINANCES ISN'T CLEAR COMPANY OFFICIALS ANNOUNCED IN LATE OCTOBER THAT MCDONNELL DOUGLAS COULD TAKE AS MUCH AS 450 MILLION IN PRETAX CHARGES TO EARNINGS IN CONNECTION WITH THE PROGRAM THE COMPANY ALREADY HAS WRITTEN DOWN ABOUT 1 BILLION IN CONNECTION WITH THE C17 WHICH IT AGREED TO BUILD ON A FIXEDPRICE CONTRACT WHILE MCDONNELL DOUGLAS CONTENDS IT IS OWED ABOUT 155 BILLION THE COMPANY HAS FILED ONLY 350 MILLION OF THAT AMOUNT IN CLAIMS FOR WORKORDER CHANGES AND OTHER ALTERATIONS TO CONTRACT TERMS THAT IT ASSERTS ADDED TO THE COST IT HAS PREPARED ANOTHER 12 BILLION IN CLAIMS THAT IT HAS YET TO FILE SAY THOSE FAMILIAR WITH THE SITUATION MCDONNELL DOUGLAS ALSO HAS SAID THAT IN ACCOUNTING FOR THE C17 CLAIMS IT HAS ASSUMED IT WILL RECOVER AT LEAST 208 MILLION FOR CLAIMS IT FILED IN 1989 AND 1990 UNDER THE TERMS OF THE NEW AGREEMENT THE PENTAGON STILL HAS WHAT ONE ADMINISTRATION OFFICIAL HAS CALLED AN OPTION OUT THAT ALLOWS THE AGENCY TO BEGIN ARRANGING PURCHASES OF THE COMMERCIALTYPE JETLINERS FROM BOEING CO OR MCDONNELL DOUGLAS TO FILL SOME MILITARY NEEDS THAT MIGHT HAVE BEEN PROVIDED BY C17S LOCKHEED STILL HOPES TO PERSUADE THE AIR FORCE TO FILL SOME OF THAT CAPACITY WITH ITS C5 MILITARY TRANSPORT OFFICIALS AT SEATTLEBASED BOEING ARE EAGER TO SELL THEIR 747 JUMBO JETS TO THE GOVERNMENT AND THEY'VE TAKEN HEART AT SUGGESTIONS BY PRESIDENT CLINTON THAT HE'S INTERESTED IN THE IDEA IN A LETTER DEC 6 TO US REP NORM DICKS A DEMOCRAT FROM WASHINGTON STATE THE PRESIDENT SAID HE SEES COMMERCIAL JETS AS A VERY VIABLE OPTION IN FILLING MILITARY NEEDS 9312150157 931215 BUSINESS BRIEF LAFARGE CORP COMPANY TO REGROUP UNITS TAKE A 4THQUARTER CHARGE LAFARGE CORP SAID IT WILL TAKE A FOURTHQUARTER CHARGE OF ABOUT 15 MILLION OR 24 CENTS A SHARE TO RESTRUCTURE ITS NORTH AMERICAN BUSINESS UNITSINCLUDING ELIMINATING ABOUT 300 JOBS OR 11 OF ITS WORK FORCE THE CONSTRUCTIONMATERIALS COMPANY IN RESTON VA SAID IN JANUARY IT WILL BEGIN MERGING 11 REGIONAL OPERATING UNITS OF ITS PRINCIPAL BUSINESSES CEMENT AND CONSTRUCTION INTO SIX UNITS TO IMPROVE EFFICIENCY AND COST LAFARGE SAID IT ALSO WILL REDUCE MANAGEMENT LAYERS ALTHOUGH MANUFACTURING AND DISTRIBUTION FACILITIES WON'T BE MATERIALLY AFFECTED THE PLAN IS EXPECTED EVENTUALLY TO REDUCE COSTS BY ABOUT 19 MILLION ANNUALLY AND BY ABOUT 8 MILLION IN 1994 9312150156 931215 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB SOUL ON HIGH WHEN THE HISTORY OF THE CLINTON PRESIDENCY IS WRITTEN THE LITTLEKNOWN EVENTS OF NOV 5 WILL COME TO OCCUPY A PLACE OF SIGNIFICANCE THAT WAS THE NIGHT WHEN BILL CLINTON RESOLVED TO BEGIN TALKING TO THE COUNTRY'S SOUL NOT JUST TO ITS MIND AND ITS POCKETBOOK IT'S AN EVOLUTION THAT IS GRADUALLY BRINGING MR CLINTON BACK IN TOUCH WITH A SPECIAL SKILL HE SEEMED TO FORGET HE HAD AND ONE THE COUNTRY SORELY NEEDS IN LARGE MEASURE THE CATALYST FOR THIS TURN IN THE CLINTON PRESIDENCY WAS A QUIET DINNER THAT NIGHT IN THE WHITE HOUSE'S OLD FAMILY DINING ROOM AT WHICH THE PRESIDENT BROKE BREAD WITH 11 PRESIDENTIAL HISTORIANS AND SCHOLARS AS THE EVENING PROGRESSED THE SCHOLARS URGED MR CLINTON TO MAKE MORE USE OF A PRESIDENT'S UNIQUE POWER TO SUMMON PEOPLE ONTO A HIGHER MORAL PLANE TO SOLVE SOCIETY'S MOST SEVERE PROBLEMS TO SOME EXTENT OUR ADVICE WAS TO PULL BACK FROM THE IMMEDIATE DETAILS OF POLICIES AND PROGRAMS IMPORTANT THOUGH THEY ARE IN THEIR OWN TERMS AND TO EXPLAIN WHAT IS AT STAKE MORALLY AND POLITICALLY IN THOSE POLICIES RECALLS MICHAEL SANDEL OF HARVARD WHO PARTICIPANTS SAY DELIVERED THE MOST COMPELLING CALL TO RHETORICAL ACTION THE IMPACT OF THAT DISCUSSION WAS IN THE WORDS OF PRESIDENTIAL ADVISER GEORGE STEPHANOPOULOS BIG BIG IN FACT THE TONE OF THE CLINTON PRESIDENCY HAS SINCE CHANGED ONE WEEK LATER MR CLINTON STUNNED HIS OWN STAFF BY UNLOADING THE MOST PASSIONATE SPEECH OF HIS PRESIDENCY AN APPEAL IN MEMPHIS TENN FOR A HALT TO DEBILITATING BLACKONBLACK VIOLENCE AND AN END TO THE GREAT CRISIS OF THE SPIRIT THAT IS GRIPPING AMERICA TODAY SOON MR CLINTON SHOWED UP IN A KITCHEN IN A CRIMERIDDEN WASHINGTON NEIGHBORHOOD TO HELP FIX THANKSGIVING DINNERS FOR THE POOR THAT WAS FOLLOWED BY AN EMOTIONCHARGED SPEECH ON THE AIDS CRISIS IN WHICH HE GENTLY ABSORBED A REMARKABLE OUTBURST OF CRITICISM FROM A FRUSTRATED YOUNG AIDS ACTIVIST IN THE AUDIENCE SUBSEQUENTLY HE TOLD US MOVIE MOGULS OF THEIR RESPONSIBILITY TO HELP TONE DOWN THE VIOLENCE IN AMERICAN LIFE AND TOLD MAYORS AND POLICE CHIEFS HOW CRIME IS SLOWLY RESHAPING THE CONTOURS OF SOCIETY ALL OF THIS OF COURSE WILL BE DISMISSED BY THE CYNICS AMONG US AS LITTLE MORE THAN CRASS OPPORTUNISM A HYPOCRITICAL ATTEMPT BY A SLICK AND DRAFTDODGING POLITICIAN TO CASH IN ON THE CRIME ISSUE AND IT CERTAINLY IS GOOD POLITICS BUT IT IS MORE THAN THAT FIXING THE US'S SOCIAL FABRIC IS ONE OF THE CENTRAL ASSIGNMENTS HISTORY HAS HANDED TO BILL CLINTON WHATEVER THE LEGISLATIVE ACHIEVEMENTS OF HIS FIRST YEAR HE DOESN'T HAVE THE STRENGTH TO BECOME A GREAT MOVER OF GIANT LEGISLATIVE PROGRAMS HIS CHECKBOOK IS TOO SMALL AND HIS MANDATE IS TOO THIN IN CAPTURING THE PRESIDENCY MR CLINTON WON MORE THAN HALF OF THE VOTES IN EXACTLY ONE STATE HIS HOME STATE OF ARKANSAS HIS HOLD ON THE SENATE IS TENUOUS AND LIKELY TO BE MORE SO AFTER NEXT YEAR'S ELECTIONS NOR DO HIS BACKGROUND OR THE TIMES CALL FOR HIM SO FAR AT LEAST TO CHOREOGRAPH GREAT WORLD REALIGNMENTS THAT WAS GEORGE BUSH'S ASSIGNMENT BUT MR CLINTON DOES CONFRONT A STEADY EROSION IN PEOPLE'S SENSE THAT THEY LIVE TOGETHER AS PART OF A COMMUNITY OF SHARED VALUES AND MUTUAL RESPECT THAT EROSION IS SEEN IN THE RACIAL VIOLENCE AND EVERYDAY FEARS THAT CLOUD THE NATION'S STREETS AND WHATEVER HIS FLAWS MR CLINTON DOES HAVE THE ABILITY TO SPEAK TO PEOPLE'S INNER CONCERNS ABOUT SOCIETY HE CAN TALK THE TALK IT'S AN ABILITY HE APTLY DISPLAYED IN HIS PRESIDENTIAL CAMPAIGN WHICH AT TIMES LOOKED MORE LIKE A NATIONAL ENCOUNTER GROUP YET ALL THAT GOT LOST IN THE CHAOTIC POLICY WONKERY OF THE FIRST CLINTON YEAR THE COMBINATION OF A 200 HAIRCUT FORGOTTEN CAMPAIGN PROMISES AND DEALS WITH SPECIAL INTERESTS TO PASS A BUDGET AND TRADE DEAL ERODED PEOPLE'S SENSE THAT MR CLINTON HAD THEIR VALUES THE SHARE OF THOSE WHO THINK MR CLINTON DOES A GOOD JOB UNITING THE COUNTRY PLUNGED TO 25 IN OCTOBER FROM 56 IN JANUARY ACCORDING TO A WALL STREET JOURNAL/NBC NEWS POLL NOW MR CLINTON IS TRYING TO REFOCUS ON VALUES AND FRIENDS PREDICT HE WILL DO THAT EVEN MORE NEXT YEAR TO THOSE WHO UNDERSTAND HIS POLITICAL HISTORY ALL THIS REPRESENTS A DRIFT BACK TOWARD WHERE BILL CLINTON THE NATIONAL POLITICIAN BEGAN WHEN HE SPOKE TO THE CENTRIST DEMOCRATIC LEADERSHIP COUNCIL IN 1991 THE SPEECH THAT MOST CLINTONITES CONSIDER THE REAL START OF HIS PRESIDENTIAL CAMPAIGN MR CLINTON CLOSED HIS REMARKS BY TALKING ABOUT CRIME THE PRESIDENT IS ALMOST BEING RELEASED TO GO BACK TO THE WAY HE UNDERSTANDS POLITICAL LIFE SAYS STANLEY GREENBERG HIS POLLSTER AMERICANS PICKED MR CLINTON TO BE PRESIDENT IN PART BECAUSE THEY THOUGHT HE WAS A DEMOCRAT ACTUALLY WILLING TO TALK ABOUT VALUES THEY SEEM READY TO HEAR MORE OF IT NOW 9312150155 931215 EXTHRIFT CEO GETS 6 1/2YEAR TERM ON FRAUD CHARGES BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES CHARLES W KNAPP THE FORMER THRIFT OPERATOR CONVICTED OF DUPING AN ARIZONA SAVINGS AND LOAN INTO LENDING HIM 15 MILLION WAS SENTENCED TO 6 1/2 YEARS IN PRISON AND ORDERED TO PAY 11 MILLION FEDERAL JUDGE STEPHEN V WILSON MADE A PERSONAL OBSERVATION AFTER HE PRONOUNCED THE MAXIMUM SENTENCE ALLOWABLE UNDER FEDERAL SENTENCING GUIDELINES ASSAILING MR KNAPP AND TWO ASSOCIATES AND CALLING MR KNAPP'S CRIME MOTIVATED BY HIS DESIRE TO BE A FORCE IN THE FINANCIAL WORLD THE JUDGE SAID MR KNAPP THE HIGHLIVING CHIEF EXECUTIVE OFFICER OF AMERICAN SAVINGS & LOAN ASSOCIATION BEFORE ITS SEIZURE BY FEDERAL AUTHORITIES IN 1984 HAD NO QUALMS ABOUT USING WHATEVER WAS NECESSARY TO SUPPORT HIS CRUMBLING FINANCIAL EMPIRE MR KNAPP BEGINNING IN ABOUT 1988 HAD USED HIS CLOSELY HELD TRAFALGAR HOLDINGS LTD AND RELATED ENTITIES IN A CORPORATE TAKEOVER GAME THAT GOT HIM INTO TROUBLE WITH FEDERAL PROSECUTORS MR KNAPP AND FORMER ASSOCIATES ANTHONY C SARNO AND JOSEPH V NASH EACH WERE CONVICTED OF USING QUESTIONABLE ASSETS TO INDUCE PHOENIXBASED WESTERN SAVINGS & LOAN INTO MAKING A 1988 LOAN THAT COST THE INSTITUTION 11 MILLION IN LOSSES MR KNAPP SHOWED NO EMOTION AS HE WAS SENTENCED AND THEN ASKED BY THE JUDGE IF HE HAD ANYTHING TO SAY THE WOULDBE ACQUISITION MOGUL DRESSED IN A GRAY SUIT WHITE SHIRT AND REDANDBLUE STRIPED TIE RESPONDED NO SIR YOUR HONOR JUDGE WILSON ORDERED MR KNAPP 58 YEARS OLD TO SURRENDER TO PRISON AUTHORITIES ON JAN 18 HE DENIED MR KNAPP BAIL PENDING APPEAL MR KNAPP'S LAWYER SAID HE WOULD APPEAL BOTH THE SENTENCE AND THE UNDERLYING CONVICTION IN THE CASE JUDGE WILSON ALSO SENTENCED MR KNAPP TO A THREEYEAR PROBATION TERM TO BE SERVED AFTER THE PRISON SENTENCE AND BANNED MR KNAPP FOR LIFE FROM ANY AFFILIATION WITH A FEDERAL DEPOSIT INSURANCE CORP INSTITUTION AND FROM CONTROLLING FINANCES OF ANY BUSINESS THAT EMPLOYS HIM MR SARNO 49 YESTERDAY RECEIVED A TERM OF FIVE YEARS AND THREE MONTHS MR SARNO FORMERLY MR KNAPP'S FINANCIAL ADVISER WAS ORDERED TO PAY 500000 IN RESTITUTION AND WAS ALSO DENIED BAIL PENDING APPEAL MR NASH THE FORMER ACCOUNTANT FOR MR KNAPP WILL BE SENTENCED AFTER THE JUDGE RULES ON MR NASH'S MOTION CHALLENGING THE VALIDITY OF HIS JULY CONVICTION MR NASH IS SERVING AN 11YEAR PRISON SENTENCE FOR UNRELATED CONVICTIONS ASSISTANT US ATTORNEY CAROLYN J KUBOTA WHO SUCCESSFULLY ARGUED THAT MR KNAPP BE GIVEN THE MAXIMUM AMOUNT OF JAIL TIME ALLOWABLE GIVEN THE FACTUAL FINDINGS BY THE JUDGE SAID THE CONVICTION AND THE SENTENCE SHOULD SEND A MESSAGE TO WHITECOLLAR CRIMINALS IF PEOPLE THINK A COMPLEX ACCOUNTING FRAUD CAN'T BE PROVEN TO A JURY THEY'RE WRONG SHE SAID AT AMERICAN SAVINGS THEN THE NATION'S LARGEST THRIFT MR KNAPP ACQUIRED A REPUTATION AS ONE OF THE HIGHESTFLYING OF THE INDUSTRY'S OPERATORS BUT IT WAS THROUGH TRAFALGAR THAT HE GOT INTO BIGGER TROUBLE OFTEN FLIRTING WITH ACQUISITIONS AND TAKING ADVANCE FEES THEN BACKING OUT FOR NO APPARENT REASON IN WINNING THE 1988 LOAN FROM WESTERN SAVINGS PROSECUTORS SAY MR KNAPP AND HIS PARTNERS BACKDATED DOCUMENTS BOOKED NONEXISTENT ASSETS AND LIED ON THEIR FINANCIAL STATEMENTS WESTERN SAVINGS WAS LATER SEIZED BY THE GOVERNMENT WHEN IT BECAME INSOLVENT AS A RESULT OF THE TRANSACTIONS MR KNAPP IS ALSO A DEFENDANT IN A CIVIL SUIT BROUGHT BY RESOLUTION TRUST CORP THE FEDERAL THRIFTCLEANUP AGENCY MR KNAPP'S LAWYER SAID HIS CLIENT IS IN THE MIDST OF SETTLEMENT NEGOTIATIONS WITH THE RTC SEPARATELY MR KNAPP WAS NAMED IN A CIVIL LAWSUIT FILED BY THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH ALLEGED VIOLATIONS OF SECURITIES LAWS BY FIRST PACIFIC BANCORP A HOLDING COMPANY FOR A NOWDEFUNCT BANK 9312150154 931215 INTERNATIONAL CHINA IS FACING TRADE DEFICIT RAISING FEARS ANALYSTS FRET THAT BEIJING MAY REACT BY SLOWING CHANGES IN ECONOMY BY MARCUS BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG WHEN IT COMES TO IMPORTS CHINA HAS A WORLDCLASS APPETITE AIRPLANES FROM BOEING TELEPHONE SYSTEMS FROM ALCATEL AUTOMOBILES FROM HYUNDAI SO VORACIOUS IS CHINA'S IMPORT HUNGER THAT IT HAS OVERWHELMED HEALTHY GAINS THIS YEAR IN CHINA'S EXPORTS NOW THE PROSPECT OF THE COUNTRY'S FIRST TRADE DEFICIT SINCE 1989 IS GIVING ECONOMISTS INDIGESTION WHAT THE ANALYSTS FEAR IS THAT A BIG TRADE GAP MAY DISPLEASE THE MERCURIAL MANDARINS WHO RUN CHINA'S FASTEMERGING ECONOMY AND CAUSE BEIJING TO CLAMP DOWN THEREBY SETTING BACK ECONOMIC CHANGE EVEN RECENT MOVES TO SPUR THE ECONOMY AFTER A BRIEF SUMMER OF AUSTERITY COULD FALL VICTIM TO AN ANTIDEFICIT BACKLASH THE CHINESE HATE DEFICITS WITH A PASSION SAYS PAUL SCHULTE A STRATEGIST WHO TRACKS CHINA'S ECONOMY FOR CS FIRST BOSTON HONG KONG LTD WHY THE PASSION FOR ONE THING IMPORTS COST HARDEARNED HARD CURRENCY AND CHINA HUSBANDS ITS FOREIGNEXCHANGE RESERVES CLOSELY FOR ANOTHER ALL THE SPENDING ON IMPORTS IS FUELING INFLATION LASTLY MASSIVE IMPORTS ARE SOMETHING OF A HISTORICAL PHOBIA IN THE 19TH CENTURY VIRULENT ANTIFOREIGNER CAMPAIGNS FOUND ROOTS IN CHINA'S PERCEIVED EXPLOITATION BY FOREIGN GOODS THE COUNTRY NOW IS HEADING TOWARD WHAT SOME ECONOMISTS BELIEVE COULD BE ITS WIDEST TRADE GAP SINCE THE COMMUNIST PARTY CAME TO POWER IN 1949 IN THE FIRST NINE MONTHS OF 1993 EXPORTS CLIMBED 94 TO 693 BILLION ACCORDING TO CHINESE CUSTOMS FIGURES THAT SOLID GAIN WAS ECLIPSED BY IMPORTS WHICH LEAPED ALMOST 40 TO 764 BILLION LEAVING A TRADE GAP OF 71 BILLION CHINA RUNS A RISING TRADE SURPLUS WITH ITS BIGGEST TRADING PARTNER THE US THOUGH THE TWO DISAGREE ON HOW BIG IT IS FOR THE FULL YEAR ACCORDING TO CHINESE ECONOMISTS EXPORTS ARE LIKELY TO HIT 91 BILLION WHILE IMPORTS COULD TOP 100 BILLION THE TREND HAS BEEN APPARENT SINCE EARLIER THIS YEAR WHEN THE CENTRAL GOVERNMENT ATTEMPTED TO BRING THE OVERALL ECONOMY'S RUNAWAY GROWTH UNDER CONTROL LAST YEAR CHINA'S ECONOMY GREW 128 FASTER THAN ANY OTHER COUNTRY'S AND IN THE FIRST SIX MONTHS OF THIS YEAR IT RATCHETED UP TO A 14 ANNUAL GROWTH RATE INFLATION TOO PICKED UP WITH PRICES IN URBAN AREAS RISING AT AN ANNUAL CLIP OF 20 OR MORE FOR MOST OF THIS YEAR BEIJING RESPONDED STARTING IN JUNE WITH A SERIES OF STIFF MEASURES AIMED AT DAMPING BANK LENDING STOCKMARKET SPECULATION CONSUMER SPENDING INFLATION AND IMPORTS THE MEASURES HAVE BEEN RELAXED RECENTLY THOUGH CHINA'S ECONOMIC CZAR VICE PREMIER ZHU RONGJI SAID IN AN INTERVIEW THIS WEEK THAT BEIJING REMAINS CAUTIOUS THAT THE TRADE DEFICIT PERSISTS SAYS SIMON OGUS AN ECONOMIST AT GT MANAGEMENT ASIA LTD COULD BE CONSIDERED A SIGN THINGS HAVEN'T TURNED AROUND AND THAT THE ECONOMY ISN'T UNDER CONTROL MOREOVER HE WARNS THAT WHEN BEIJING'S LEADERS DISCOVER AT THE END OF THE YEAR THAT IMPORTS HAVE SUCKED 9 BILLION OR MORE OUT OF THE COUNTRY THAN EXPORTS EARNED THEY WILL RESPOND HARSHLY CHINA'S RESERVES INCLUDING BOTH THOSE HELD BY THE PEOPLE'S BANK OF CHINA THE CENTRAL BANK AND THE OVERSEAS BANK OF CHINA PLUNGED 14 TO 384 BILLION IN THE FIRST HALF OF THIS YEAR THAT IS STILL A COMFORTABLE CUSHION BY INTERNATIONAL STANDARDS ON TOP OF THAT IS A REPORTED FLOW OF 15 BILLION IN ACTUAL INVESTMENT COMING INTO CHINA SO FAR THIS YEAR BUT MORE AND MORE MONEY IS SIPHONED OUT OF THE COUNTRY BY STATE COMPANIES INVESTING ABROAD OR SIMPLY IMPORTING SO RESERVES COULD DIMINISH RAPIDLY NOR MR OGUS SAYS CAN CHINA EXPAND ITS EXPORTS SUFFICIENTLY TO COMPENSATE FOR THE IMPORT SURGE THE WORLD'S MAJOR INDUSTRIALIZED COUNTRIES ARE TOO SLUGGISH TO ABSORB MORE FACING SUCH CONSTRAINTS ANALYSTS SAY BEIJING MAY ATTEMPT TO EXTEND ALREADYSIGNIFICANT DIRECT CONTROLS ON IMPORTS MOREOVER AN ENSUING RUSH FOR FOREIGN EXCHANGE TO BUY MORE IMPORTS MAY PUSH UP THE VALUE OF THE DOLLAR AGAINST THE YUAN CHINA'S CURRENCY IN THE SOCALLED SWAP CENTERS WHERE TRADING COMPANIES NOW OBTAIN HARD CURRENCY THE RATE NOW STANDS AT ABOUT 87 YUAN TO THE DOLLAR THOUGH TOURISTS AND SOME COMPANIES MUST TRADE AT A LESS ADVANTAGEOUS RATE OF 57 YUAN SUCH SCENARIOS COLLIDE HARD WITH CHINA'S ECONOMIC REFORMS AS WELL AS RECOMMENDATIONS BY THE WORLD BANK ITS ECONOMISTS THINK CHINA SHOULD FURTHER LIBERALIZE ITS IMPORT TRADE BY REDUCING NONTARIFF BARRIERS 9312150153 931215 GAS PIPELINE DIVISION OF TENNECO SEES RISE IN THROUGHPUT FOR '93 HOUSTON TENNECO INC'S NATURAL GAS PIPELINE DIVISION WHOSE REVENUE ACCOUNTS FOR NEARLY ONEFIFTH OF THE COMPANY'S TOTAL EXPECTS TO REPORT THAT GAS THROUGHPUT ROSE 13 IN 1993 GAS THROUGHPUT IS THE TOTAL OF GAS TRANSPORTED OR SOLD STEPHEN CHESEBRO' PRESIDENT AND CHIEF OPERATING OFFICER OF THE DIVISION SAID VOLUME AND PROFIT MARGINS HAVE REMAINED STRONG IN THE PAST FEW WEEKS DESPITE THE DROP IN GAS PRICES THAT HAS FOLLOWED AN EVEN WORSE SLIDE BY CRUDE OIL HE SAID ALTHOUGH MANY MAJOR CUSTOMERS SUCH AS HOUSTON INDUSTRIES INC'S ELECTRIC UTILITIES UNIT HAVE SWITCHED TO CHEAPER OIL FROM NATURAL GAS WHERE POSSIBLE TENNECO'S INCREASING FOCUS ON SHIPPING GAS OWNED BY CUSTOMERS THUS CHARGING STEADY TRANSPORTATION FEES INSTEAD OF INVESTING IN GAS TO RESELL IT IS MAINTAINING TENNECO'S PROFIT MARGINS STOCK TRADERS AND ANALYSTS HAVE BEEN INTENTLY WATCHING NATURALGAS PRICES AND VOLUMES TO SEE IF THEY PLUNGE LIKE OIL PRICES AND FURTHER DRAG DOWN THE STOCK PRICES OF MANY COMPANIES IN THE ENERGY SECTOR CURRENTLY ONE OF THE MOST VOLATILE DESPITE THE LOWER GAS PRICES TENNECO PLANS TO EXPAND CAPITAL SPENDING ON PIPELINE EXPANSION BY 14 TO 20 IN 1994 MR CHESEBRO' SAID THE COMPANY PLANS TO SPEND 200 MILLION TO 210 MILLION ON PIPELINE EXPANSION INCLUDED IN THAT WILL BE TENNECO'S RECENTLY ANNOUNCED JOINT VENTURE WITH BRITISH GAS PLC TO BUILD A 750MILE PIPELINE FROM ARGENTINA TO CHILE HE SAID THE COMPANY IS CONSIDERING SEVERAL OTHER POSSIBLE INTERNATIONAL PROJECTS SUCH FOREIGN EXPANSION IS A HIGHER RISK THAN VENTURES IN THE US WHERE TENNECO'S 20000 MILES OF GAS PIPELINE MAKE IT THE FOURTHLARGEST SUCH OPERATION BUT MR CHESEBRO' SAID THE PROFIT POTENTIAL IS GREATER OUTSIDE THE US THE GAS BUSINESS IS GLOBAL AND GAS IS THE FASTEST GROWING ENERGY SOURCE WE'RE GOING TO TAKE OUR CORE COMPETENCY DESIGNING AND BUILDING PIPELINES OVERSEAS HE SAID 9312150152 931215 MUNIBOND UNDERWRITERS FACE NEW CURBS APRIL 1 WASHINGTON THE MUNICIPAL SECURITIES RULEMAKING BOARD SAID ITS PROPOSED RULE LIMITING POLITICAL CONTRIBUTIONS BY BOND UNDERWRITERS WILL TAKE EFFECT APRIL 1 WELL AFTER THE PLANNED EFFECTIVE DATE OF JAN 1 THE RULE WHICH MUST BE APPROVED BY THE SECURITIES AND EXCHANGE COMMISSION WOULD PROHIBIT BOND FIRMS THAT MAKE POLITICAL CONTRIBUTIONS FROM DOING BUSINESS WHERE THE CITIES AND STATES WHERE THE POLITICIANS SERVE THE MSRB ORIGINALLY SAID THE PROHIBITION WOULD TAKE EFFECT JAN 1 BUT LAST WEEK THE MSRB SAID THE EFFECTIVE DATE WOULD BE DELAYED FOR AT LEAST TWO MONTHS PAST JAN 1 TO GIVE BOND FIRMS TIME TO IMPLEMENT EFFECTIVE PROCEDURES FOR COMPLIANCE MSRB EXECUTIVE DIRECTOR CHRISTOPHER TAYLOR COULDN'T BE REACHED TO COMMENT ON THE EXTENSION TO APRIL 1 THE MSRB SAID IT INTENDS TO FILE THE PROPOSED RULE WITH THE SEC NO LATER THAN MIDJANUARY 9312150151 931215 WHO'S NEWS PROCTER & GAMBLE OFFICER ELIMINATES HIS OWN JOB CINCINNATI GERALD V DIRVIN A BOARD MEMBER AND EXECUTIVE VICE PRESIDENT OF PROCTER & GAMBLE CO HAS ELIMINATED HIS OWN JOB AND WILL LEAVE THE CONSUMERPRODUCTS COMPANY APRIL 30 HE WAS THE ARCHITECT OF THE COMPANY'S MOST RECENT RESTRUCTURING IN A STATEMENT MR DIRVIN 56 YEARS OLD SAID THAT HE ELIMINATED HIS JOB BECAUSE HE SAW AN OPPORTUNITY TO DO SO AND BECAUSE I REALLY BELIEVE IN THE IMPORTANCE OF REDUCING THE NUMBER OF MANAGEMENT LAYERS IN OUR ORGANIZATION HE ADDED THAT AT THIS POINT IN HIS LIFE HE IS READY TO SHIFT GEARS MR DIRVIN HAD BEEN IN CHARGE OF P&G'S ADVERTISING MARKET RESEARCH SALES PUBLIC RELATIONS AND HUMANRESOURCES FUNCTIONS THESE RESPONSIBILITIES WILL BE ASSIGNED TO SENIOR EXECUTIVES IN THESE STAFF FUNCTIONS MR DIRVIN WILL BE SUCCEEDED ON P&G'S BOARD EFFECTIVE MARCH 8 BY CHARLES R LEE CHAIRMAN OF GTE CORP 9312150150 931215 TEXAS JOURNAL VENTURE CAPITAL BY KYLE POPE YOU SAY YOU CAN'T FIND VENTURECAPITAL MONEY IN TEXAS LOOK HARDER ACCORDING TO A NEW STUDY BY DELOITTE & TOUCHE FINANCINGS INVOLVING TEXAS VENTURECAPITAL FIRMS SHOT UP 30 DURING THIS YEAR'S FIRST HALF TO 2054 MILLION FROM 1582 MILLION DURING THE SAME PERIOD LAST YEAR FIFTYSIX COMPANIES RECEIVED VENTURECAPITAL MONEY IN THE FIRST SIX MONTHS HALF OF THEM FROM TEXAS BUT OF THOSE DEALS THE OUTOFSTATERS GOT BIGGER CHUNKS OF CASH THE STUDY SHOWS THAT ONLY 60 MILLION OF THE TOTAL WENT TO TEXAS FIRMS LEAVING A MUCH BIGGER 1454 MILLION FOR THE NONTEXAS COMPANIES MOREOVER FINANCINGS FOR NONTEXAS COMPANIES GREW 35 IN THE FIRST HALF WHILE TEXAS FIRMS' GROWTH WAS 19 ONE POSSIBLE EXPLANATION TEXAS VENTURECAPITAL FIRMS ARE GROWING UP MANY OF THE FIRMS LAUNCHED TO SERVE TEXAS HAVE OUTGROWN THE REGION CHOOSING INSTEAD TO FOCUS ON NATIONAL ISSUES OR BIGGER TERRITORIES DAVID KENNEDY A DELOITTE & TOUCHE MANAGER IN DALLAS WHO WORKED ON THE STUDY SAYS THAT VOID MAY BE FILLED BY NEW VENTURECAPITAL MONEY THAT HAS SPRUNG UP RECENTLY INCLUDING NEW FUNDS FROM STANDBYS LIKE SEVIN ROSEN AND THE NEW TEXAS GROWTH FUND AN OUTGROWTH OF THE GIANT TEXAS TEACHER RETIREMENT SYSTEM OF THE MONEY INVESTED IN THE FIRST HALF HEALTH CARE AND MEDICAL COMPANIES CASHED IN THE BIGGEST MEANTIME THE POPULAR HANGOUTS FOR TEXAS VENTURE CAPITALISTS IN THE 1980S COMPUTER AND SOFTWARE COMPANIES REGISTERED A WEAK SHOWING IN THE LATEST STUDY BUT LEST ANYONE BELIEVE HIGH TECH IN TEXAS IS DEAD A NEWCOMER TO THE STUDY A CATEGORY CALLED INFORMATION SERVICES WHICH INCLUDES ONLINE SERVICES AND DATABASES ZOOMED TO THE TOP FIVE 9312150149 931215 TEXAS JOURNAL ECONOMIC FOCUS NO AAA STATE BONDS BLAME IT ON THE FUTURE BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL WHAT'S IT GOING TO TAKE FOR TEXAS TO ONCE AGAIN BECOME THE DARLING OF DEBTRATERS TEXAS STATE BONDS LOST THEIR CHERISHED TRIPLEA GRADE FROM MAJOR DEBTRATING AGENCIES DURING THE OIL BUST OF THE '80S AND DESPITE AN ECONOMIC RESURGENCE THE STAIN HAS STUCK STANDARD & POOR'S AND MOODY'S INVESTORS SERVICE BOTH MAINTAIN RATINGS A FULL NOTCH BELOW THE TOP AT DOUBLEA WHILE FITCH INVESTORS SERVICE IS SLIGHTLY MORE OPTIMISTIC AT DOUBLEAPLUS WHILE THOSE RATINGS DON'T EXACTLY SIGNIFY TEXAS BONDS ARE JUNK THEY DO MEAN THE STATE PAYS MILLIONS OF DOLLARS A YEAR IN EXTRA INTEREST TO MAKE UP FOR WHAT IS CONSIDERED A RISKIER INVESTMENT AND THEY COME DESPITE THE FACT THAT TEXAS' NUMBERS STACK UP WELL AGAINST THOSE OF MOST OTHER STATES INCLUDING THE EIGHT WITH TRIPLEA RATINGS FROM MOODY'S TEXAS' TAXSUPPORTED DEBT AS A PERCENTAGE OF PERSONAL INCOME IS 11 COMPARED WITH A MEDIAN OF 15 FOR ALL TRIPLEA STATES ACCORDING TO MOODY'S DEBT SERVICE AS A PERCENTAGE OF STATE REVENUE IS 24 IN TEXAS COMPARED WITH A MEDIAN OF 29 FOR THE TRIPLEA STATES ON THIS COUNT ONLY TWO OF THE TOP STATES RANK BETTER THAN TEXAS TEXAS' GENERAL REVENUE FUND CASH BALANCE AS OF AUG 31 STOOD AT ABOUT 76 OF THE FUND'S FISCAL 1993 EXPENDITURES LEAVING TEXAS WITH THE 11THHIGHEST FIGURE AMONG ALL STATES AMONG THE 10 MOSTPOPULOUS STATES TEXAS RANKS DEAD LAST IN PERCAPITA STATE DEBT SO WHAT GIVES SHOULDN'T ALL THIS QUALIFY TEXAS AS THE PERFECT DEBTOR NOT EXACTLY BECAUSE WHILE THE PRESENT MAY LOOK PRETTY GOOD THE FUTURE IS A BIT WORRISOME FOR STARTERS TEXAS MUST SPEND HUNDREDS OF MILLIONS OF DOLLARS TO BUILD AND OPERATE MORE PRISONS IN THE NEXT FEW YEARS ON TOP OF THAT THERE'S STILL A CLOUD OF UNCERTAINTY SURROUNDING SCHOOL FINANCE ALTHOUGH STATE DISTRICT JUDGE SCOTT MCCOWN LAST WEEK UPHELD THE STATE'S NEW SCHOOLFINANCE REFORM PACKAGE WHICH WOULD REDISTRIBUTE TAXES FROM RICH TO POOR SCHOOL DISTRICTS THE ISSUE SEEMS CERTAIN TO WIND UP BEFORE THE TEXAS SUPREME COURT IF THE LAW FAILS THAT CHALLENGE LEGISLATORS MAY BE FORCED TO RADICALLY INCREASE THE STATE'S CONTRIBUTION TO EDUCATIONAL FUNDING SINCE LOCAL GOVERNMENT IS A CREATION OF THE STATE THE QUESTION IS WHAT RESPONSIBILITY MAY FALL BACK ON THE PARENT GOVERNMENT SAYS GEORGE W LEUNG MOODY'S MANAGING DIRECTOR OF STATE RATINGS ADDING TO THE UNCERTAINTY JUDGE MCCOWN FOUND THAT THE STATE STILL NEEDS TO COME UP WITH A FORMULA TO EQUALIZE FUNDING FOR SCHOOL CONSTRUCTION WHICH IS NOW FINANCED THROUGH BOND ISSUES BY SCHOOL DISTRICTS WITH ENROLLMENT GROWING BY ABOUT 70000 STUDENTS PER YEAR THE ANNUAL COST OF BUILDING NEW FACILITIES AND RENOVATING EXISTING STRUCTURES IS ROUGHLY 366 MILLION KEVIN O'HANLON CHIEF COUNSEL FOR THE TEXAS EDUCATION AGENCY SAYS HE BELIEVES IT WOULD COST THE STATE A TOTAL OF ONLY ABOUT 200 MILLION IN THE 1996 AND 1997 FISCAL YEARS TO MEET THE JUDGE'S FACILITIES FINANCING REQUIREMENTS ALTHOUGH THE AMOUNT COULD JUMP SUBSEQUENTLY STATE FUNDING FOR PUBLIC EDUCATION NOW TOTALS ABOUT 7 BILLION A YEAR MEANWHILE THE REVENUE SIDE OF THE TEXAS LEDGER ALSO CONCERNS THE RATING AGENCIES SPECIFICALLY ANALYSTS FRET ABOUT THE STATE'S REFUSAL TO IMPLEMENT A STATE INCOME TAX TEXANS DIDN'T ALLAY SUCH FEARS IN THE LATEST ELECTIONS BY APPROVING A CONSTITUTIONAL AMENDMENT PROHIBITING A STATE INCOME TAX UNLESS VOTERS APPROVE IT AND THE MONEY THUS RAISED BE USED TO DEFRAY PROPERTY TAXES IT'S PROBABLY WIDELY FELT THAT TEXAS COULD USE ADDITIONAL REVENUE SOURCES SAYS CLAIRE COHEN EXECUTIVE VICE PRESIDENT OF FITCH INVESTORS SERVICE SUCH CONCERNS ASIDE HOWEVER MS COHEN PRONOUNCES HERSELF OPTIMISTIC ON THE STATE TEXAS HAS DIVERSIFIED AND GROWN STRONGER SHE SAYS INDEED DESPITE THE MILD REBUFF FROM THE RATING AGENCIES IT'S CLEAR THAT THE MARKET HAS RECOGNIZED A TURNAROUND IN TEXAS' FORTUNES IN THE SUMMER OF 1987 TEXAS GENERALOBLIGATION BONDS ENDURED AN INTEREST RATE PENALTY OF 36 BASIS POINTS OR HUNDREDTHS OF A PERCENTAGE POINT ABOVE THE MOST HIGHLY RATED BONDS ACCORDING TO THE TEXAS BOND REVIEW BOARD BY JULY 1993 THE AVERAGE PENALTY HAD FALLEN TO JUST 12 BASIS POINTS AND LAST YEAR WAS THE FIRST TIME SINCE 1984 THAT INVESTORS HAVE DEMANDED A HIGHER INTEREST RATE ON CALIFORNIA'S BONDS THAN ON TEXAS' BONDS ACCORDING TO THE REVIEW BOARD A TEXAS AGENCY THAT OVERSEES THE STATE'S DEBT DOES HE KNOW SOMETHING FOR READERS OF ECONOMIC TEA LEAVES HERE'S A SIGNAL THAT AUSTIN HOUSING PRICES MAY HAVE PEAKED COMPTROLLER JOHN SHARP THE STATE'S TOP ECONOMIC OFFICIAL HAS SOLD HIS HOUSE AND MOVED INTO A RENTAL I'M JUST GOING TO RENT FOR NOW AND SEE WHAT HAPPENS TO THE MARKET SAYS MR SHARP WHO SOLD HIS FOURBEDROOM HOUSE IN THE TARRYTOWN SECTION OF AUSTIN AFTER JUST TWO OR THREE DAYS OF ADVERTISING IT WITH A FOR SALE BY OWNER SIGN ON THE FRONT LAWN IF THE MARKET GOES BACK DOWN HE SAYS I'LL BUY AGAIN 9312150148 931215 WORLD TRADE TALKS US TRADE DEFICIT MEASURE WIDENED IN THIRD QUARTER WASHINGTON THE BROADEST MEASURE OF THE US TRADE DEFICIT WIDENED TO 2799 BILLION IN THE THIRD QUARTER FROM 2717 BILLION IN THE PREVIOUS QUARTER THE COMMERCE DEPARTMENT SAID THE CURRENTACCOUNT DEFICIT WHICH TRACKS THE FLOW OF GOODS SERVICES AND INVESTMENT TO AND FROM THE US IS AT ITS HIGHEST LEVEL SINCE THE FOURTH QUARTER OF 1988 HOWEVER THE PICTURE LOOKS CONSIDERABLY BRIGHTER THAN THE MERCHANDISETRADE IMBALANCE WHICH DOESN'T INCLUDE SERVICES WHERE THE US HAS A CONSIDERABLE COMPETITIVE EDGE OVER MOST COUNTRIES THE MERCHANDISE TRADE GAP WIDENED TO 363 BILLION IN THE THIRD QUARTER ANALYSTS BLAMED THE WIDENING OF THE CURRENTACCOUNT DEFICIT ON SLUGGISH DEMAND FROM OVERSEAS TRADING PARTNERS AND AN INCREASING APPETITE FOR IMPORTED GOODS IN THE US AS THE ECONOMY HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9312150147 931215 TEXAS JOURNAL INSURANCE ALLIANCE THE RACE BEGINS BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL A HIGHSTAKES BIDDING WAR IS BREWING OVER WHO WILL ADMINISTER THE NEW TEXAS INSURANCE PURCHASING ALLIANCE A GOVERNMENT PURCHASING POOL THAT IS INTENDED TO MAKE HEALTH INSURANCE AFFORDABLE FOR SMALL TEXAS EMPLOYERS BID PACKAGES BEGAN CIRCULATING LAST WEEK AND ALREADY SEVEN FIRMS INCLUDING COMPUTERSERVICES CONCERNS SUCH AS ELECTRONIC DATA SYSTEMS CORP AND GIANT HEALTHINSURANCE COMPANIES SUCH AS EMPLOYERS HEALTH INSURANCE CO SAY THEY ARE MULLING BIDS THE CONTRACT COULD BE LUCRATIVE BUT EVEN MORE IMPORTANT IS THE FACT THAT WINNING THE JOB COULD LEAD TO EVEN BIGGER OPPORTUNITIES IF THE CLINTON ADMINISTRATION'S PLANNED HEALTHCARE REFORM SUCCEEDS IN CREATING SIMILAR PURCHASING ALLIANCES ALL OVER THE US TEXAS IS THE SECOND STATE AFTER CALIFORNIA TO CREATE ONE THE TEXAS MARKET IS HUGE THE STATE ESTIMATES THERE ARE 340000 TEXAS BUSINESSES WITH THREE TO 50 EMPLOYEES WHICH MAKES THEM ELIGIBLE TO PARTICIPATE ONLY A THIRD OF THOSE EMPLOYERS NOW PROVIDE HEALTHINSURANCE BENEFITS OVERALL TEXAS HAS A HIGHER PERCENTAGE OF PEOPLE WITHOUT COVERAGE THAN ANY OTHER STATE OF COURSE THERE'S NO GUARANTEE THAT THE TEXAS EXPERIENCE WILL BE A GOOD ONE UNDER TERMS OF THE BID PACKAGE THE ADMINISTRATOR WILL BE RESPONSIBLE FOR EVERYTHING FROM MARKETING THE ALLIANCE TO EMPLOYERS AND INSURANCE AGENTS TO COLLECTING PREMIUMS FROM MEMBER COMPANIES BUT IT WILL ONLY BE PAID BASED ON HOW MANY GROUPS ARE ENROLLED THUS UNLESS IT CAN PERSUADE LARGE NUMBERS OF EMPLOYERS TO JOIN WHAT IS A VOLUNTARY PROGRAM IT COULD LOSE MONEY AND THE ADMINISTRATOR ALREADY FACES A HARD SELL IN SIGNING UP EMPLOYERS THE LAW THAT CREATED THE ALLIANCE REQUIRES SMALL EMPLOYERS THAT DECIDE TO OFFER NEW HEALTH INSURANCE TO PAY 75 OF THE PREMIUMS AND ENROLL 90 OF EMPLOYEES WHO DON'T HAVE OTHER HEALTH INSURANCE RUNNING THE TEXAS ALLIANCE ALSO WILL BE SOMEWHAT MORE COMPLICATED INITIALLY THAN THE ONE IN CALIFORNIA BECAUSE THE TEXAS ADMINISTRATOR IS RESPONSIBLE FOR MEDICAL UNDERWRITING WHICH MEANS IT MUST DETERMINE WHETHER AN EMPLOYER IS COVERABLE IN CALIFORNIA UNIVERSAL COVERAGE IS MANDATED THE TEXAS LAW SAYS NO ONE CAN BE REFUSED COVERAGE AFTER 1995 THE WINNING BIDDER ALSO WILL HAVE TO PROVE IT CAN BE USERFRIENDLY NOT JUST CHEAP TEXAS BOARD MEMBERS SAY THAT WHILE COST IS A FACTOR THE BID THAT PROMISES THE BEST SERVICE AT THE BEST PRICE IS THE ONE THAT WILL PROBABLY WIN BIDS ARE DUE BY JAN 10 HERE ARE SOME COMPANIES THAT SAY THEY'RE INTERESTED EMPLOYERS HEALTH INSURANCE CO THIS HEALTH INSURER BASED IN GREEN BAY WIS SAYS IT PLANS TO BID AND HAS TO BE CONSIDERED A FRONTRUNNER IN FEBRUARY IT BEAT OUT SEVEN OTHER BIDDERS TO WIN THE CALIFORNIA CONTRACT AND HAS WON HIGH MARKS FOR SIGNING UP 1430 EMPLOYERS THERE SO FAR 23 OF WHICH WERE PREVIOUSLY UNINSURED JOHN RAMEY EXECUTIVE DIRECTOR OF CALIFORNIA'S MANAGED RISK INSURANCE BOARD SAYS THE COMPANY WON IN PART BECAUSE IT PROMISED TO APPROVE EMPLOYERS' APPLICATIONS FOR COVERAGE IN ONLY FOUR DAYS AND OVERALL WAS WILLING TO HOLD THEMSELVES TO A TIGHTER STANDARD OF PERFORMANCE KELON CORP THIS SOFTWARE COMPANY BASED IN PHOENIX ARIZ HAS ADMINISTERED FLORIDA HEALTHACCESS A SYSTEM OF 25 COUNTYWIDE PURCHASING ALLIANCES SINCE 1987 IT SAYS IT PLANS TO BID IN TEXAS POSSIBLY BY TEAMING UP WITH GTE CORP'S DATA SERVICES INC UNIT ALSO BASED IN PHOENIX ELECTRONIC DATA SYSTEMS CORP THIS DALLASBASED UNIT OF GENERAL MOTORS CORP IS CONSIDERED A STRONG CONTENDER ALTHOUGH IT HASN'T YET FORMALLY DECIDED TO BID THE COMPUTERSERVICES GIANT HAS EXPERIENCE RUNNING MEDICAID PROGRAMS IN 19 STATES INCLUDING TEXAS AND HANDLES CLAIMS FOR 66 BLUE CROSS OR BLUE SHIELD PLANS NATIONWIDE EDS RECENTLY WAS INVOLVED IN AN EMBARRASSING FOULUP IN KANSAS MEDICAID BILLINGS BECAUSE OF A COMPUTER ERROR DURING 1990 AND 1991 EDS OVERPAID HUNDREDS OF DOCTORS PHARMACISTS AND HOSPITALS BY 220000 AND IS NOW ATTEMPTING TO BILL THEM FOR THE DIFFERENCE BUT AN EDS SPOKESWOMAN SAYS THAT UNLIKE AN INSURANCE COMPANY SERVING AS AN ADMINISTRATOR EDS WOULD HAVE NO CONFLICT OF INTEREST IN MARKETING COMPETING HEALTH PLANS COMPUTER SCIENCES CORP THIS COMPANY BASED IN EL SEGUNDO CALIF SAYS IT IS INTERESTED BUT WON'T SAY IF IT WILL BID THE COMPANY ALREADY HANDLES A VARIETY OF INSURANCE ADMINISTRATION JOBS INCLUDING NATIONAL FLOOD INSURANCE AND NEW YORK STATE'S MEDICAID PROGRAM WHICH HANDLES ABOUT 18 BILLION IN CLAIMS A YEAR OTHERS WHO SAY THEY MAY ENTER A BID INCLUDE BLUE CROSS AND BLUE SHIELD OF TEXAS AND WORD & BROWN INC A CALIFORNIABASED ADMINISTRATOR OF HEALTH INSURANCE FOR SMALL GROUPS A PARTIAL LIST OF COMPANIES THAT ARE CONSIDERING MAKING A BID ON A FIVEYEARCONTRACT TO ADMINISTER THE TEXAS INSURANCE PURCHASING ALLIANCE ELECTRONIC DATA SYSTEMS CORP DALLAS SUBSIDIARY OF GENERAL MOTORS CORP EMPLOYERS HEALTH INSURANCE CO GREEN BAY WIS SUBSIDIARY OF LINCOLN NATIONAL CORP FORT WAYNE IND GTE DATA SERVICES INC PHOENIX ARIZ SUBSIDIARY OF GTE CORP STAMFORD CONN 9312150146 931215 TEXAS JOURNAL NOW CAN THEY FILL THE TAMALES WITH FRUITCAKES BY JEFF D OPDYKE FORGET CHESTNUTS ROASTING ON AN OPEN FIRE IF IT'S CHRISTMAS IN SOUTH TEXAS IT CAN ONLY MEAN ONE THING TAMALES IN ONE OF TEXAS' ETHNIC ECCENTRICITIES TAMALES HAVE EMERGED AS THE HOLIDAY EDIBLE OF CHOICE ALONG THE BORDER AND THROUGHOUT THE RIO GRANDE VALLEY SAN ANTONIO ALONE HAS AN ESTIMATED 1000 TAMALE MAKERS ONE OF THOSE EL REY TORTILLA & TAMALE FACTORY IS PUMPING OUT AS MANY AS 150 DOZEN TAMALES A DAY THREE TIMES ITS RATE FOR THE REST OF THE YEAR DURING CHRISTMAS WEEK ALONE SAYS EL REY OWNER JAIME MARTINEZ THE RESTAURANT WILL SELL 24000 TAMALES MANY GOING TO CORPORATE CHRISTMAS PARTIES FOR SOME EATERIES TAMALES ARE ONLY SOLD AT THIS TIME OF THE YEAR FOR INSTANCE TACO CABANA INC A SAN ANTONIOBASED FASTFOOD CHAIN ADDS TAMALES TO ITS MENU DURING CHRISTMAS IN ITS SOUTH TEXAS STORES THE SAME IS TRUE FOR SAN ANTONIO'S EL MIRADOR RESTAURANT THEY'RE JUST TOO MUCH TROUBLE TO MAKE ANY OTHER TIME OF THE YEAR SAYS EL MIRADOR'S OWNER MARY TREVINO SO WHY THE TAMALE IT'S A VERY OLD TRADITIONAL AFFAIR THAT KEEPS LATINO FAMILIES TOGETHER DURING THE HOLIDAYS SAYS JOSE LOPEZ PRESIDENT OF SAN ANTONIO'S DELICIOUS TAMALE FACTORY WHICH EXPECTS TO SELL MORE THAN ONE MILLION TAMALES DURING THE HOLIDAY SEASON WHILE THE WOMEN GATHER TO MAKE THE CORNBREAD DOUGH MEN CONGREGATE TO PREPARE THE BEEF CHICKEN OR PORK ENTIRE FAMILIES CONVENE TO WRAP THE MEAT INSIDE THE DOUGH THEN ROLL IT ALL TOGETHER IN A CORNHUSK DESPITE ITS HISPANIC ROOTS IT'S NOT JUST MEXICANAMERICANS OBSERVING THIS HOLIDAY TAMALE TRADITION MR MARTINEZ SAYS 60 OF HIS CUSTOMERS ARE NONHISPANIC TAMALES AT CHRISTMAS HAS BECOME VERY MAINSTREAM HE SAYS IT'S LIKE TURKEY AND THANKSGIVING IN MORE WAYS THAN ONE ADDS DIANA TREVINO THE DAUGHTERINLAW OF EL MIRADOR'S OWNER AS SOON AS CHRISTMAS IS OVER SHE SAYS YOU DON'T WANT TO LOOK AT ANOTHER TAMALE 9312150145 931215 GM PLANS TWO RECALLS FOR UNRELATED DEFECTS DETROIT GENERAL MOTORS CORP SAID IT WILL RECALL A TOTAL OF 341000 CARS FOR TWO UNRELATED SAFETY DEFECTS THE FIRST RECALL INVOLVES ABOUT 150000 199293 MODEL PONTIAC SUNBIRDS EQUIPPED WITH 20LITER ENGINES GM SAID THE CARS MAY HAVE DEFECTIVE THROTTLE CABLE ASSEMBLIES THAT UNDER COLD OR ICY CONDITIONS COULD REMAIN STUCK OPEN THUS AFFECTING THE DRIVER'S ABILITY TO CONTROL THE SPEED OF THE CAR THE SECOND RECALL INVOLVES 191000 198891 PONTIAC LEMANS AND OPTIMA MODELS WHICH MAY HAVE CHIPPED OR CRACKED LOCKING MECHANISMS ON THE SEAT BELTS THAT WOULD RENDER THEM INOPERABLE GM SAID THE AFFECTED OPTIMA MODELS WERE SOLD ONLY IN CANADA A GM SPOKESWOMAN SAID THAT THERE HAVE BEEN NO REPORTS OF ACCIDENTS OR INJURIES RELATED TO EITHER RECALL OWNERS WILL BE NOTIFIED BY MAIL OF THE REPAIRS TO BE MADE AT NO CHARGE TO THE CUSTOMER 9312150144 931215 HOLIDAY GASOLINE PRICES TO REACH SEVENYEAR LOW ORLANDO FLA GASOLINE PRICES THIS CHRISTMAS WILL BE THE LOWEST THEY'VE BEEN IN SEVEN YEARS PREDICTED THE AMERICAN AUTOMOBILE ASSOCIATION IN ITS MONTHLY SURVEY OF PUMP PRICES AROUND THE NATION THE AAA SAID THE NATIONWIDE AVERAGE PRICE OF SELFSERVE REGULAR UNLEADED GASOLINE IS 1091 A GALLON THE DECEMBER PRICE IS 25 CENTS LESS THAN IT WAS A MONTH AGO AND IS THE LOWEST IT'S BEEN THE WEEK BEFORE CHRISTMAS SINCE 1986 THAT'S THE YEAR OIL PRICES TUMBLED TO LESS THAN 10 A BARREL FROM MORE THAN 20 A BARREL THIS YEAR CRUDE OIL PRICES HAVE PLUNGED FROM A HIGH OF A LITTLE MORE THAN 21 TO BELOW 15 A BARREL CURRENTLY THE AAA SAID THAT PRICES ARE DOWN IN ALL REGIONS OF THE COUNTRY EXCEPT THE SOUTHWEST WHERE THE AVERAGE PRICE INCHED UP 06 CENT TO 110 HOWEVER IN SOME HIGHLY COMPETITIVE CITIES SUCH AS HOUSTON SOME STATIONS SELL REGULAR UNLEADED FOR LESS THAN 90 CENTS A GALLON THE GREAT LAKES REGION HAD THE BIGGEST DROP EIGHT CENTS A GALLON TO AN AVERAGE OF 995 CENTS THE AAA SAID 9312150143 931215 TEXAS JOURNAL WHAT'S MORE FRIGHTENING THE EPA OR TARANTULAS BY LAURA JOHANNES THERE ARE HAZARDS AND THEN THERE ARE HAZARDS SO BROWN & ROOT INC DISCOVERED DURING A RECENT JOB THE ASSIGNMENT REMOVE HAZARDOUS WASTE FROM THE SOUTH TEXAS DESERT WHERE TWO AIR FORCE FIGHTER PLANES CRASHED IN THE PAST YEAR DURING TRAINING MISSIONS BOTH PILOTS EJECTED AND WEREN'T HURT EMPLOYEES OF THE HALLIBURTON CO UNIT EXPECTED AT WORST TO ENCOUNTER SOME LIVE 20MM AMMUNITION THAT DIDN'T BOTHER THEM IT RARELY BLOWS UP INSTEAD THEY CAME UPON SOMETHING TRULY SCARY A REDDISHBLACK TARANTULA THAT AND THE FEAR THAT DEALING WITH IT HARSHLY WOULD CREATE AN ENVIRONMENTAL INCIDENT WE ALL GATHERED AROUND AND LOOKED AT IT SAYS JERRY KAISER PROJECT MANAGER FOR BROWN & ROOT'S ENVIRONMENTAL UNIT THEY WERE IN THE DESERT ABOUT 60 MILES EAST OF LAREDO SOMEONE SAID KILL IT' BUT WE SAID NO IT'S A GOVERNMENT JOB PUT IT IN THE BUSHES' RECALLS MR KAISER EXPLAINING YOU CAN'T KILL ANYTHING ON A GOVERNMENT JOB SO BROWN & ROOT BOMB SPECIALIST JIM WATFORD WHO HAD NO SPECIAL EXPERTISE WITH POISONOUS ARACHNIDS SCOOPED UP THE TARANTULA IN HIS GLOVED HANDS AND LET IT LOOSE AT A SAFE DISTANCE ABOUT A DOZEN MORE TARANTULAS WERE UNEARTHED DURING THE 10DAY JOB AND EACH WAS RELOCATED WITHOUT INCIDENT IN RETROSPECT MR KAISER SAYS THE TARANTULAS WERE KIND OF PRETTY 9312150142 931215 INTERNATIONAL MEXICAN FIRMS EXPAND SOUTHWARD TAKING MARKET EXPERIENCE WITH THEM BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL CARACAS VENEZUELA ON THE SURFACE THE NEW CORN FLOUR FACTORY THAT WILL SOON START PRODUCTION HERE SEEMS A QUINTESSENTIALLY VENEZUELAN VENTURE THE FACTORY WILL MAKE THE MAIN INGREDIENT OF A VENEZUELAN STAPLE CALLED THE AREPA A FRIED CORNMEAL SHELL THAT IS FILLED WITH MEAT OR CHEESE BUT SURFACE APPEARANCES CAN BE DECEIVING VENEZUELAN INVESTORS ARE GETTING THEIR TECHNOLOGY AND PART OF THEIR CAPITAL FROM MEXICO'S GIANT GRUMA THE HOLDING COMPANY THAT CONTROLS MEXICO'S LARGEST MAKER OF TORTILLA FLOUR GRUPO INDUSTRIAL MASECA WE THINK THERE'S A LOT OF OPPORTUNITY IN SOUTH AND CENTRAL AMERICA SAYS GRUMA COMMERCIAL DIRECTOR LUIS FERNANDEZ A HOST OF MEXICAN COMPANIES RANGING FROM BANKS TO BROADCASTERS TO SNACK MAKERS ARE EXPANDING SOUTHWARD ANALYSTS SAY THAT THE MEXICAN PRIVATE SECTOR IS TRYING TO TRANSFER ITS OWN EXPERIENCE AT ADAPTING TO PAINFUL FREE MARKET ECONOMIC REFORMS TO OTHER LATIN AMERICAN COUNTRIES THAT ARE AT AN EARLIER STAGE IN THE REFORM PROCESS MEXICAN COMPANIES HAVE THE RESOURCES FOR SUCH EXPANSION THANKS TO THE SUCCESS THEY'VE HAD TAPPING INTERNATIONAL CAPITAL MARKETS THE MEXICAN PRIVATE SECTOR IS TAKING A VERY INTERNATIONAL VIEW SAYS JOSE JULIAN FRANCO CHIEF FINANCIAL OFFICER OF GRUPO SIDEK A TOURISM AND STEELMAKING COMPANY THAT IS STARTING A HOTEL IN COSTA RICA MANY SOUTH AMERICANS ARE WELCOMING MEXICAN CAPITAL AND EXPERTISE THE MEXICANS ARE WELL ADVANCED ON THE PROCESS OF REFORM AND WE CAN CERTAINLY LEARN THINGS FROM THEM SAYS DANIEL HOKAMA CHIEF OF THE PERUVIAN GOVERNMENT'S PRIVATIZATION PROGRAM A CASE IN POINT IS THE AIRLINE AEROPERU WHICH UNTIL RECENTLY WAS OWNED BY THE PERUVIAN GOVERNMENT THE CARRIER HAD SUCH A MISERABLE REPUTATION FOR SERVICE THAT IT WAS WIDELY KNOWN AS AEROPEOR OR WORST AIR BUT ALL OF THAT WAS BEFORE AEROVIAS DE MEXICO AN AIRLINE THAT HAD ITSELF BEEN PRIVATIZED BY THE MEXICAN GOVERNMENT LED A GROUP THAT PURCHASED AEROPERU FROM THE PERUVIAN GOVERNMENT FOR 54 MILLION EARLY THIS YEAR THE PERUVIANS ARE SO KEEN TO ATTRACT MORE MEXICAN INVESTMENT THAT MR HOKAMA RECENTLY LED A MISSION TO MEXICO CITY TO SEEK BUYERS FOR SEVERAL OTHER STATEOWNED BUSINESSES MEXICAN COMPANIES TO BE SURE AREN'T THE ONLY LATIN AMERICAN CONCERNS THAT ARE LOOKING BEYOND THEIR BORDERS IN CHILE WHICH BEGAN THE MOVE TOWARD FREE MARKET REFORM EVEN BEFORE MEXICO DID A NUMBER OF COMPANIES ARE MAKING FORAYS INTO ARGENTINA AND PERU BUT WHAT MAKES MEXICAN COMPANIES UNIQUELY ATTRACTIVE AS JOINT VENTURE PARTNERS IS THE NORTH AMERICAN FREE TRADE AGREEMENT THAT MEXICO HAS SIGNED WITH THE US AND CANADA NOW MEXICAN FIRMS CAN SERVE AS A BRIDGE BETWEEN THE REST OF LATIN AMERICA AND THE UNITED STATES SAYS JORGE SUAREZ A MANAGING DIRECTOR OF BROKERAGE HOUSE AFIN CASA DE BOLSA AFIN IS NEGOTIATING A JOINT VENTURE AGREEMENT WITH A BRAZILIAN INVESTMENT HOUSE THAT WOULD COMBINE AFIN'S CONTACTS WITH US INSTITUTIONAL INVESTORS WITH THE BRAZILIAN FIRM'S RESEARCH CAPACITIES MOVING SOUTH NOT ONLY ALLOWS MEXICAN COMPANIES TO FULLY EXPLOIT OPPORTUNITIES CREATED BY NAFTA BUT TO HEDGE AGAINST THE RISKS OF THE TRADE PACT AS WELL MEXICAN COMPANIES HAVE TO THINK ABOUT OFFSETTING THE INCREASED COMPETITION THAT'S GOING TO COME TO MEXICO WITH OPEN BORDERS SAYS LAVINIA AGNEW AN ANALYST FOR BARING SECURITIES FOR INSTANCE AT A TIME WHEN US SNACK PRODUCTS ARE FLOODING INTO MEXICO GRUPO INDUSTRIAL BIMBO HAS LAUNCHED A TWOPRONGED DEFENSE STRATEGY FORMING A MEXICAN JOINT VENTURE WITH SARA LEE CORP AND LAUNCHING SEPARATE SNACK VENTURES IN CENTRAL AMERICA CHILE AND VENEZUELA MANY OF THE MEXICAN VENTURES IN LATIN AMERICA TRY TO CAPITALIZE ON CULTURAL SIMILARITIES THAT TRANSCEND DIVERSE NA'S TECHNOLOGY IS SUITABLE TO ALL OF THE LATIN AMERICAN COUNTRIES WHERE CORN HAS HISTORICALLY BEEN THE BASE OF THE DIET SAYS SUDHIR ROCSENNETT AN ANALYST AT BROKERAGE INTERACCIONES CASA DE BOLSA IN MEXICO CITY THE UBIQUITOUSNESS OF MEXICAN COMPANIES IS CAUSING SOME SOUTH AMERICANS TO CARP ABOUT AZTEC IMPERIALISM CONSIDER THE REACTION TO THE SOUTHWARD EXPANSION OF GRUPO TELEVISA THE VAST SPANISH LANGUAGE COMMUNICATIONS GIANT OWNED BY EMILIO AZCARRAGA THE WEALTHIEST MAN IN LATIN AMERICA TELEVISA HAS LATELY LAUNCHED A NUMBER OF SOUTH AMERICAN VENTURES INCLUDING THE ACQUISITION OF A 49 STAKE IN A MAJOR CHILEAN TELEVISION NETWORK A MEXICAN SOAP OPERA ACTRESS GUSHED THAT TELEVISA WAS REALIZING THE VISION OF SIMON BOLIVAR THE REVERED VENEZUELAN GENERAL WHO DREAMED OF UNITING ALL SPANISH SPEAKING NATIONS IN THE HEMISPHERE BUT SOME TOOK A DIFFERENT VIEW HOY A MAJOR CHILEAN MAGAZINE BLASTED THE TELEVISA EXPANSION AS A GENUINE DANGER FOR CHILEAN TELEVISION SAID THE MAGAZINE UP IN THE NORTH THEY'RE HAPPY THEY SELL OLD PROGRAMS AND COPRODUCE IN CHILEAN INSTALLATIONS A BIG OPENING FOR A SMALL INVESTMENT 9312150141 931215 PRODUCTION OUTLOOK IS BRIGHT IN SURVEY BUT DOUBTS LINGER NEW YORK MANUFACTURERS EXPECT THE CURRENT BOOM IN PRODUCTION TO LAST THROUGH THIS YEAR BUT QUESTION WHETHER IT CAN BE SUSTAINED WHILE CONSTRUCTION FIRMS ARE OPTIMISTIC ABOUT SHORTTERM GROWTH ACCORDING TO TWO MONTHLY SURVEYS BY DUN & BRADSTREET CORP THERE IS NO EVIDENCE THAT MANUFACTURERS ARE PREPARING FOR A PERIOD OF SUSTAINED GROWTH SAID DOUGLAS P HAN ANALYSIS FOR D&B HOWEVER HE SAID MANUFACTURERS ARE STRETCHING TO MEET THEIR CURRENT DEMANDS WITH SUCH LOWRISK TACTICS AS EXTENDING HOURS FOR EACH WORKER OR ADDING A NEW SHIFT THE SURVEY OF 1000 FIRMS REPORTED THAT OPERATING CONDITIONS IN NOVEMBER ROSE TO THEIR HIGHEST LEVEL SINCE D&B INITIATED ITS POLL IN JANUARY 1990 MAKERS OF NONDURABLE GOODS SUCH AS FOOD PRODUCTS TEXTILES PAPER AND CHEMICALS REPORTED THE LARGEST GAINS REFLECTING HIGHER DEMAND FROM BOTH CONSUMERS AND BUSINESSES BUT SHORTTERM EXPECTATIONS CONTINUE TO SLIP MR HANDLER SAID AND OTHER MEASURES INDICATE THAT MANUFACTURERS STILL HARBOR DOUBTS ABOUT THE STRENGTH OF THE CURRENT EXPANSION EXECUTIVES EXPECT INVENTORIES OF FINISHED GOODS TO RISE WHILE THEIR OUTLOOK FOR EXPANDED CAPACITY REMAINS FLAT AND EXPECTATIONS FOR EMPLOYMENT ARE FALLING HE SAID THE SURVEY MEASURES EXPECTATIONS FOR INCREASES IN PRODUCTION NEW ORDERS UNFILLED ORDERS INVENTORY LEVELS AND EXPORTS IN A SEPARATE D&B SURVEY 200 CONSTRUCTION FIRMS REPORTED RISING OPTIMISM ABOUT GROWTH IN THE NEXT THREE MONTHS BUILDERS REPORTED SIGNIFICANTLY IMPROVED THREEMONTH OUTLOOKS FOR EMPLOYMENT PRICES AND ORDER BOOKS COMPARED WITH EXPECTATIONS A YEAR AGO AMID A FLURRY OF BUILDING ACTIVITY PROFIT MARGINS IN THE CONSTRUCTION INDUSTRY ARE RISING MR HANDLER SAID IMPROVED PROFITABILITY IS CERTAINLY AMONG THE CHIEF REASONS FOR THE JUMP IN OPTIMISM AMONG BUILDERS HE SAID 9312150140 931215 PARAMOUNT OPTS TO PUT ITSELF UP FOR AUCTION HEEDING COURTS' ORDERS COMPANY OPENS BIDDING AND DROPS VIACOM PACT BY JOHNNIE L ROBERTS AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK EFFECTIVELY ABANDONING ITS FRIENDLY AGREEMENT TO BE ACQUIRED BY VIACOM INC PARAMOUNT COMMUNICATIONS INC PUT ITSELF UP FOR AUCTION WITH BIDS DUE NEXT MONDAY IN DOING SO THE BELEAGUERED PARAMOUNT BOARD SOUGHT TO COMPLY WITH HIGHLY CRITICAL RULINGS BY DELAWARE STATE COURTS BY WITHDRAWING ITS ENDORSEMENT OF VIACOM'S 94 BILLION OFFER AND FOR THE FIRST TIME OPENING THE DOOR TO RIVAL BIDDER QVC NETWORK INC A HOMESHOPPING CONCERN ALTHOUGH NO OTHER SUITOR HAS EMERGED PARAMOUNT SAID THE AUCTION IS OPEN TO ALL PRESENT AND PROSPECTIVE BIDDERS THE PROCEDURES FOR THE AUCTION UNVEILED YESTERDAY FOLLOWING A LONG AND ANGUISHED BOARD MEETING MONDAY NIGHT REPRESENTED AN EFFORT BY PARAMOUNT TO KEEP CONTROL OF THE BIDDING FOLLOWING TWO DELAWARE STATE COURT RULINGS THAT PARAMOUNT IMPROPERLY FAVORED THE VIACOM OFFER OVER QVC'S 10 BILLION BID PARAMOUNT SHAREHOLDERS NOW GET A FAIR SHAKE AND HAVE THE FLEXIBILITY TO VOTE FOR THE BEST BID SAID ED HATCH ANALYST AT UBS SECURITIES SAID A BIG PARAMOUNT HOLDER I THINK THE PROCESS IS FAIR NOW MANY OUTSIDE OBSERVERS AGREED THAT GIVEN THE CHANGES THE COURTS FORCED ON PARAMOUNT VIACOM WILL BE COMPELLED TO BOOST ITS OFFER OR DROP OUT OF THE RUNNING BUT FEW WOULD SPECULATE ABOUT THE OUTCOME OF THE THREEMONTHLONG TAKEOVER BATTLE SAYING IT'S UNCLEAR WHICH BIDDER IS MORE DETERMINED TO BUY PARAMOUNT THERE'S TOTAL UNCERTAINTY ON WALL STREET ABOUT WHAT HAPPENS SAID JOHN TINKER A MEDIA ANALYST AT FURMAN SELZ INC VIACOM A CABLETELEVISION COMPANY AND QVC DECLINED TO COMMENT YESTERDAY THE CRUCIAL PARAMOUNT BOARD MEETING WAS THE FIRST SINCE THE 15MEMBER BOARD WAS SHARPLY REBUKED BY THE DELAWARE SUPREME COURT FOR YIELDING TO THE STRONGWILLED CHAIRMAN MARTIN S DAVIS WHO FAVORED THE LOWER VIACOM BID HE HAD VIGOROUSLY DEFENDED A COMBINATION WITH VIACOM AS A STRATEGIC MERGER THAT WOULD YIELD THE GREATEST LONGTERM VALUE FOR SHAREHOLDERS DESPITE THE LEGAL THRASHING HOWEVER THE BOARD ACCEDED TO MR DAVIS'S WISHES AND DECIDED NOT TO NAME A SPECIAL COMMITTEE OF INDEPENDENT DIRECTORS TO CONSIDER THE BIDS A PARAMOUNT SPOKESMAN ACKNOWLEDGED THAT THE BOARD HAD DISCUSSED FORMING SUCH A COMMITTEE BUT HE SAID IT WAS INAPPROPRIATE TO ELABORATE A DIRECTOR SAID A LIVELY DEBATE OCCURRED TRADERS SAID THEY HAD HEARD THAT AT LEAST TWO DIRECTORS HAD THREATENED TO RESIGN IF AN INDEPENDENT COMMITTEE WASN'T ESTABLISHED BUT THAT THE TWO ULTIMATELY BACKED DOWN SEPARATELY PARAMOUNT ANNOUNCED A 55 DROP IN ITS FISCAL SECONDQUARTER EARNINGS THE RESULTS WORSE THAN SOME SECURITIES ANALYSTS EXPECTED REFLECTED A POOR PERFORMANCE AT PARAMOUNT'S ENTERTAINMENT OPERATIONS THROUGH AN AUCTION OF PARAMOUNT WHICH OWNS A MOVIE STUDIO PUBLISHER SIMON & SCHUSTER AND PROFESSIONAL SPORTS TEAMS THE COMPANY SAID IT PLANNED TO SELECT THE BIDDER PROVIDING THE GREATEST VALUE TO SHAREHOLDERS BUT PARAMOUNT ALSO SAID IT WOULD DROP ITS POISONPILL ANTITAKEOVER DEVICE FOR BOTH BIDDERS ALLOWING SHAREHOLDERS TO CHOOSE FOR THEMSELVES WHICH OFFER TO ACCEPT PARAMOUNT ALSO ATTEMPTED TO ELIMINATE THE COERCIVE NATURE OF BOTH BIDDERS' TWOSTEP CASHANDSTOCK OFFERS BY REQUIRING THE WINNING BIDDER TO LEAVE ITS OFFER OPEN FOR 10 DAYS AFTER GAINING ENOUGH STOCK TO COMPLETE THE BID SO THAT SHARES TENDERED TO THE OTHER BIDDER CAN BE WITHDRAWN AND RESUBMITTED TO THE WINNER ONE LARGE PARAMOUNT SHAREHOLDER SAID THIS IS A PARTICULARLY ATTRACTIVE FEATURE TO PROTECT HOLDERS WHO MAKE THE WRONG CHOICE PARAMOUNT DIDN'T EXPLICITLY SAY IT WOULD PICK THE BID WITH THE HIGHEST CURRENT MARKET VALUE RETAINING SOME FLEXIBILITY TO CHOOSE BASED ON OTHER FACTORS FOR EXAMPLE IT HAS ASKED ITS INVESTMENT BANKER LAZARD FRERES & CO TO STUDY THE GROWTH PROSPECTS OF BOTH VIACOMPARAMOUNT AND QVCPARAMOUNT COMBINATIONS BUT IT ALSO SAID IT WOULD CONSIDER THE DEGREE TO WHICH EACH BID OFFERS PROTECTION FROM A DECLINE IN THE PRICE OF ANY STOCK THAT CONSTITUTES PART OF THE OFFER AND PROTECTION FROM AN EVENTUAL FORCED SQUEEZE OUT IN WHICH MINORITY SHAREHOLDERS IN THE COMBINED COMPANY ARE BOUGHT OUT BY THE CONTROLLING SHAREHOLDERS ALTHOUGH PARAMOUNT DIDN'T EXPLICITLY TERMINATE ITS ACQUISITION AGREEMENT WITH VIACOM FIRST ENTERED INTO ON SEPT 12 THE WITHDRAWAL OF ITS ENDORSEMENT OF THE DEAL APPEARS TO CONSTITUTE GROUNDS FOR VIACOM TO TERMINATE THE AGREEMENT IN A POTENTIALLY TROUBLING DEVELOPMENT FOR VIACOM PARAMOUNT ALSO ASKED VIACOM AND QVC TO PROVIDE INFORMATION ABOUT PURCHASES OR SALES OF THEIR SECURITIES OR OTHER FACTORS THAT MAY HAVE HAD AN IMPACT ON THEIR STOCK PRICE AS WELL AS OPINIONS FROM THEIR ADVISERS STATING THAT SUCH TRANSACTIONS WERE LEGAL THE REQUEST CONTAINED IN LETTERS TO BOTH BIDDERS SEEMS TO ADDRESS QUESTIONS ABOUT AGGRESSIVE BUYING OF THINLY TRADED VIACOM STOCK BEFORE AND AFTER THE SEPT 12 PARAMOUNTVIACOM AGREEMENT THAT MAY HAVE HELPED BOOST VIACOM'S STOCK PRICE VIACOM CHAIRMAN SUMNER REDSTONE WAS A BIG BUYER OF VIACOM STOCK IN JULY AND AUGUST CONTRIBUTING TO A 26 PRICE INCREASE IN THOSE TWO MONTHS JUST BEFORE THE TAKEOVER TALKS ENTERED THEIR FINAL PHASE AND WMS INDUSTRIES INC A COMPANY IN WHICH MR REDSTONE OWNS A 249 STAKE ALSO BOUGHT VIACOM STOCK IN LATE SEPTEMBER AND EARLY OCTOBER WHEN PARAMOUNT SHAREHOLDERS WERE TRYING TO EVALUATE BOTH BIDS IN ITS COURT CHALLENGE TO THE VIACOM ACQUISITION QVC CRITICIZED PARAMOUNT FOR NOT AIRING QUESTIONS ABOUT THE VIACOM STOCK TRADING MORE THOROUGHLY AT PARAMOUNT BOARD MEETINGS PARAMOUNT'S REQUEST SEEMS TO BE AN EFFORT TO GAIN ALL AVAILABLE INFORMATION ABOUT THE BUYING IN ORDER TO HELP EVALUATE THE BIDS YESTERDAY QVC ALSO ASKED THE DELAWARE CHANCERY COURT TO COMPEL VIACOM TO PRODUCE ALL INFORMATION REGARDING THE TRADING BY MR REDSTONE AND WMS QVC IS ALSO SEEKING TO DEPOSE MR REDSTONE ABOUT THE TRADING AMONG OTHER THINGS THE DELAWARE COURTS THREW OUT A LOCK UP OPTION GRANTED TO VIACOM BY PARAMOUNT THAT AGREEMENT WOULD HAVE FORCED QVC IF IT WON THE CONTEST TO PAY VIACOM ROUGHLY 400 MILLION QVC IS EXPECTED TO CHALLENGE A SEPARATE 100 MILLION BREAKUP FEE THAT PARAMOUNT WOULD HAVE TO PAY A DEFEATED VIACOM FOR NOW ACCORDING TO PEOPLE FAMILAR WITH THE SITUATION PARAMOUNT HAS AGREED NOT TO MAKE THE PAYMENT IF VIACOM ABRUPTLY ABANDONS THE BIDDING CONTEST BEFORE QVC CAN MAKE ITS LEGAL CHALLENGE WHILE PARAMOUNT'S BOARD DIDN'T FORM ITS OWN COMMITTEE TO EVALUATE ITS OPTIONS THE BIDDING PROCEDURES SET FORTH ARE PROBABLY AS GOOD AS AN INDEPENDENT COMMITTEE SAID GUY WYSERPRATTE A TAKEOVER STOCK TRADER WHO OWNS PARAMOUNT SHARES THEY'RE DOING ALL THE THINGS THAT THE COURT WANTS THEM TO HE SAID PARAMOUNT COULD STILL TRY TO INFLUENCE THE OUTCOME BY DECLARING ITS PREFERENCE BUT UNDER THE RULES HE SAID TRADERS WILL BE ABLE TO MAKE THEIR OWN MINDS UP ONE INVESTMENT BANKER SAID PARAMOUNT APPEARED TO HAVE DRAWN UP ITS GROUND RULES BY TAKING THE COURT'S LANGUAGE AND XEROXING' IT THIS BANKER ADDED THAT THE SHORT BIDDING PERIOD MAKES IT HARDER FOR ANY THIRD BIDDER TO MAKE A LATE ENTRY GIVEN THAT PARAMOUNT HAS PUT ITSELF UP FOR SALE TO THE HIGHEST BIDDER ANOTHER BANKER SAID THAT THE RULES GIVE THE BOARD A GRACEFUL SOLUTION TO A POLITICAL PROBLEM EFFECTIVELY TAKING THE DECISION OUT OF THE HANDS OF MR DAVIS WITHOUT THE REBUKE THAT WOULD HAVE BEEN IMPLIED BY THE CREATION OF A SPECIAL COMMITTEE THE BOARD DECIDED TO ABDICATE UNDER THE GUISE OF LETTING SHAREHOLDERS DECIDE FOR THEMSELVES HE SAID THIS BANKER SAID THAT THESE GROUND RULES WILL ENCOURAGE BOTH BIDDERS TO MAKE THE FIRST STAGE OF THEIR BIDS AS ATTRACTIVE AS POSSIBLE TO GAIN 51 OF PARAMOUNT STOCK CURRENTLY QVC IS OFFERING 90 CASH FOR 51 OF PARAMOUNT SHARES AND SECURITIES VALUED AT 7606 FOR THE REMAINDER FOR A COMBINED VALUE OF 8317 A SHARE VIACOM IS OFFERING 85 A SHARE IN CASH FOR 51 AND SECURITIES VALUED AT 7181 A SHARE FOR TH REST FOR A COMBINED VALUE OF 7854 A SHARE TO TRY TO ENTICE HOLDERS OF 51 TO SELL THEIR SHARES THE BIDDERS MIGHT RAISE THEIR CASH PRICE WHILE REDUCING THE VALUE OF THE SECURITIES IN THE REST OF THEIR PACKAGE THE BANKER SAID ONE TRADER SAID PARAMOUNT MIGHT STILL BE ABLE TO FAVOR VIACOM BY CLOSING OUT THE AUCTION IF VIACOM'S BID IS HIGHER OR SEEKING A HIGHER BID IF VIACOM'S BID IS LOWER IN ANOTHER SIGN THAT THE PARAMOUNTVIACOM ALLIANCE IS LOOSENING KEKST & CO THE PUBLICRELATIONS FIRM THAT HAS REPRESENTED BOTH SIDES IN THE PROPOSED ACQUISITION HALTED ITS REPRESENTATION OF VIACOM WHILE CONTINUING TO REPRESENT PARAMOUNT CITING PARAMOUNT'S ANNOUNCED INTENTION TO HOLD AN AUCTION INSTEAD OF PROCEEDING WITH THE VIACOM TRANSACTION MEANWHILE PARAMOUNT REPORTED EARNINGS THAT WERE HURT BY A LOSS IN MOTIONPICTURE OPERATIONS AS A RESULT OF WRITEDOWNS FOR SUCH FILMS AS SEARCHING FOR BOBBY FISCHER THE THING CALLED LOVE AND BOPHA IN ITS SECOND QUARTER ENDED OCT 31 EARNINGS DROPPED TO 968 MILLION OR 80 CENTS A SHARE FROM 1024 MILLION OR 86 CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 139 BILLION FROM 120 BILLION OPERATING PROFIT IN ENTERTAINMENT OPERATIONS DECLINED TO 453 MILLION FROM 539 MILLION A YEAR EARLIER THE FILM LOSS MORE THAN OFFSET OPERATING PROFIT GAINS FROM TV PROGRAMMING TV STATIONS THEME PARKS AND THEATER OPERATIONS IN THE PUBLISHING UNIT OPERATING PROFIT REACHED A RECORD 1321 MILLION UP FROM 1245 MILLION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PARAMOUNT SHARES CLIMBED 75 CENTS TO 81125 VIACOM'S CLASS B STOCK ROSE 50 CENTS TO 4350 QVC SHARES CLOSED 1 HIGHER AT 42 IN NASDAQ STOCK MARKET TRADING 9312150139 931215 TREASURY PLANS SALE OF SHORTTERM BILLS TOTALING 26 BILLION WASHINGTON THE TREASURY PLANS TO RAISE 255 BILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 26 BILLION IN SHORTTERM BILLS TO REDEEM 2346 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING MARCH 24 AND JUNE 23 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794J62 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794L36 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EST 9312150138 931215 DIVIDEND NEWS JEFFERSON BANKSHARES INC JEFFERSON BANKSHARES INC OF CHARLOTTESVILLE VA BOOSTED ITS QUARTERLY DIVIDEND 13 TO 17 CENTS A SHARE FROM 15 CENTS PAYABLE JAN 31 TO STOCK OF RECORD JAN 3 THE BANK HOLDING COMPANY SAID THE INCREASE REFLECTS STRONG EARNINGS AND CAPITAL POSITION 9312150137 931215 SWEDEN GDP ROSE IN 3RD PERIOD STOCKHOLM SWEDEN'S GROSS DOMESTIC PRODUCT JUMPED 20 IN THE THIRDQUARTER FROM THE SECONDQUARTER ACCORDING TO PRELIMINARY FIGURES RELEASED YESTERDAY BY THE NATIONAL STATISTICS AGENCY SCB THE AGENCY ATTRIBUTED THE 20 INCREASE TO AN 115 RISE IN EXPORTS OF GOODS AND SERVICES DURING THE PERIOD THE EXPORT OF GOODS ALONE WAS UP A SHARP 151 IN THE THIRD QUARTER FROM THE SECOND IT SAID 9312150136 931215 PRICOR APPROVES NAME CHANGE MURFREESBORO TENN PRICOR INC'S BOARD APPROVED CHANGING THE COMPANY'S NAME TO CHILDREN'S COMPREHENSIVE SERVICES INC THE COMPANY SAID THE NAME CHANGE IS SUBJECT TO STOCKHOLDER APPROVAL AT A SPECIAL MEETING SET FOR JAN 19 9312150135 931215 BOWATER MACHINE CLOSED BY FIRE GREENVILLE SC BOWATER INC SAID A FIRE AT ITS MILL IN CATAWBA SC WILL FORCE THE TEMPORARY CLOSURE OF THE COMPANY'S LARGEST NEWSPRINT MACHINE THE COMPANY SAID REPAIRS WILL TAKE ABOUT ONE WEEK ABOUT 5000 TONS OF NEWSPRINT PRODUCTION WILL BE LOST BOWATER A MAKER OF NEWSPRINT AND OTHER TYPES OF PAPER SAID A MAJORITY OF THE EXPENSE LINKED TO THE REPAIR WILL BE COVERED BY INSURANCE 9312150134 931215 MERCANTILE BANKSHARES STOCK BALTIMORE MERCANTILE BANKSHARES CORP SAID ITS BOARD AUTHORIZED SUBJECT TO REGULATORY REQUIREMENTS THE BUYBACK OF AS MANY AS ONE MILLION COMMON SHARES PERIODICALLY IN THE OPEN MARKET OR IN PRIVATE TRANSACTIONS MERCANTILE BANKSHARES SAID IT WILL USE THE PURCHASED SHARES FOR CORPORATE PURPOSES INCLUDING ISSUANCE UNDER ITS DIVIDEND REINVESTMENT AND STOCKBASED COMPENSATION PLANS 9312150133 931215 WHO'S NEWS ONEITA INDUSTRIES INC ONEITA INDUSTRIES INC ANDREWS SC JOHN G HUDSON 68 YEARS OLD WAS NAMED A DIRECTOR OF THIS APPAREL MANUFACTURER MR HUDSON WAS PRESIDENT AND CHIEF OPERATING OFFICER OF AVONDALE MILLS INC IN SYLACAUGA ALA HE SUCCEEDS HERBERT M GARDNER WHO RESIGNED 9312150132 931215 TEXAS JOURNAL AS FUNDING DEADLINE NEARS BULLET TRAIN APPEARS DEAD BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL JUST TWO WEEKS BEFORE A KEY STATE DEADLINE TEXAS' PLANNED BULLET TRAIN APPEARS TO BE DEAD TEXAS TGV CORP OFFICIALS TRYING TO REGROUP AFTER THEIR LARGEST SHAREHOLDER BACKED OUT OF A 200 MILLION FINANCING PLAN HAVE RUN OUT OF OPTIONS TO MEET THE FINANCING DEADLINE ACCORDING TO PEOPLE CLOSE TO THE SITUATION THE COMPANY WHICH PROPOSED BUILDING A 68 BILLION HIGHSPEED RAIL SYSTEM CONNECTING TEXAS' LARGEST CITIES DECLINED TO COMMENT BUT ONE PERSON FAMILIAR WITH THE DEAL SAID TOP TEXAS TGV OFFICIALS NOW EXPECT TO DEFAULT ON THE STATE BULLETTRAIN FRANCHISE AT THE END OF THE MONTH AND STATE OFFICIALS WHO LAST YEAR GRANTED A CONTROVERSIAL 12MONTH EXTENSION OF THE FINANCING DEADLINE HAVE SAID A SECOND EXTENSION IS UNLIKELY AT THIS POINT IN TIME I'M NOT PREPARED TO SAY THAT HIGHSPEED RAIL IS A VIABLE ALTERNATIVE FOR THE STATE OF TEXAS SAID HERSHEL PAYNE CHAIRMAN OF THE TEXAS HIGH SPEED RAIL AUTHORITY THE STATE AGENCY OVERSEEING THE PROJECT THE TEXAS TGV PARTNERS HAVE NOT BEEN ABLE TO OBTAIN THEIR FINANCING HE ADDED THEY HAVE NOT BEEN ABLE TO CONVINCE THE MARKETPLACE IT'S AN ALTERNATIVE THAT WOULD BE SUCCESSFUL THE AUTHORITY'S BOARD WILL MEET FRIDAY TO DISCUSS THE ISSUE THE SITUATION HAS DETERIORATED MARKEDLY SINCE JUST LAST WEEK THEN TGV OFFICIALS HAD A PLAN TO MEET THE DEADLINE FOR LINING UP 170 MILLION IN EQUITY FINANCING COMMITMENTS THEY WOULD ISSUE 200 MILLION OF EURONOTES THAT EVENTUALLY COULD BE CONVERTED TO STOCK IN THE COMPANY BUT ON THURSDAY A DAY BEFORE THE NOTES WERE TO BE SOLD MORRISON KNUDSEN CORP THE PROJECT'S LARGEST SHAREHOLDER BACKED OUT OF ITS COMMITMENT TO GUARANTEE THE NOTES AND THE CONSORTIUM ABANDONED THE OFFERING MORRISON KNUDSEN OFFICIALS SAID THE DECISION TO WITHDRAW CAME DIRECTLY FROM THEIR COMPANY'S CHAIRMAN WILLIAM AGEE WHO DECLINED TO BE INTERVIEWED THE OFFICIALS SAID THEIR COMPANY REMAINS COMMITTED TO THE RAIL PROJECT BUT WANTS THE OTHER PARTNERS TO SHARE MORE OF THE RISK STILL MORRISON KNUDSEN'S DECISION TO BACK OUT HAS EFFECTIVELY CRIPPLED THE DEAL TEXAS TGV OFFICIALS SAID THEY NOW HOPE TO COMPLY WITH THE DEADLINE BY OBTAINING A LETTER FROM THEIR INVESTMENT BANK SAYING IT IS HIGHLY CONFIDENT IT CAN RAISE THE FULL 68 BILLION COST OF THE PROJECT BUT IT APPEARS UNLIKELY THE PROJECT WILL BE ABLE TO GET SUCH A LETTER WE DO NOT REGARD THE REQUEST FOR A HIGHLY CONFIDENT LETTER AS A REASONABLE REQUEST SAID DAVID FREUD DIRECTOR OF SG WARBURG & CO IN LONDON IT WOULD REQUIRE AN INVESTMENT BANK TO BE HIGHLY CONFIDENT OF RAISING ALL THE CAPITAL AT THIS EARLY STAGE OF PROJECT DEVELOPMENT PEOPLE CLOSE TO THE SITUATION ALSO SAID AN SG WARBURG SURVEY OF POTENTIAL INVESTORS FOUND A REVAMPED TEXAS TGV OFFERING WOULD LIKELY FAIL BECAUSE INVESTORS ARE ANGRY THAT THE FIRST WAS ABANDONED EXACTLY WHY MORRISON KNUDSEN BALKED ISN'T CLEAR WHILE OFFICIALS OF THE IDAHO ENGINEERING COMPANY SAID THEY WANT OTHERS TO SHARE THE RISK SOURCES SAID MORRISON KNUDSEN KNEW ALL ALONG WHAT THE FINANCIAL RISK WOULD BE AND HAD EVEN WON BOARD APPROVAL AND SIGNED BOTH A LETTER OF COMMITMENT AND THE OFFERING CIRCULAR THE TWO OTHER MAJOR PARTNERS IN THE PROJECT GEC ALSTHOM INC OF PARIS WHICH DEVELOPED THE TGV TECHNOLOGY AND BOMBARDIER CORP OF MONTREAL THE NORTH AMERICAN SUPPLIER OF THE TRAIN EQUIPMENT NEVER SUPPORTED THE CONVERTIBLE EQUITY NOTE PLAN ACCORDING TO THE PEOPLE CLOSE TO THE DEAL THE TWO COMPANIES VIEWED THEIR PRIMARY ROLES AS SUPPLYING RAIL CARS AND TECHNOLOGY AND DIDN'T WANT TO INCREASE THEIR OWNERSHIP AS A RESULT MORRISON KNUDSEN ALONE AMONG TEXAS TGV'S PARTNERS PROMISED TO GUARANTEE 75 MILLION OF THE NOTES PLUS INTEREST AS THE PRICING DATE APPROACHED HOWEVER MORRISON KNUDSEN WENT BACK TO BOMBARDIER AND GEC ALSTHOM AND THREATENED TO WITHDRAW ITS SUPPORT OF THE ISSUE IF THE COMPANIES DIDN'T SHARE SOME OF THE FINANCIAL RISK THE PEOPLE CLOSE TO THE DEAL SAID WHEN THE TWO COMPANIES AGAIN REFUSED THEY SAID MR AGEE DECIDED TO CANCEL ON THE EVE OF THE SALE GILBERT CARMICHAEL A MORRISON KNUDSEN SENIOR VICE PRESIDENT AND FORMER FEDERAL RAILROAD ADMINISTRATOR FOR THE BUSH ADMINISTRATION SAID THAT THE COMPANY DID WANT THE SUPPORT OF THE OTHER TEXAS TGV PARTNERS BUT THAT THE DECISION TO CANCEL WAS BASED ON WHAT WAS RIGHT FOR MORRISON KNUDSEN SHAREHOLDERS THE DECISION WAS NO WE CAN'T DO IT WITHOUT A PARTNER MR CARMICHAEL SAID WE CANNOT BEAR THE WHOLE EXPOSURE IF TEXAS TGV DEFAULTS ON THE FRANCHISE THE HIGH SPEED RAIL AUTHORITY CAN TERMINATE THE DEAL AND COLLECT ON A 25 MILLION ABANDONMENT BOND THE BOARD ALSO CAN GRANT AN EXTENSION BUT MR PAYNE AND OTHER BOARD MEMBERS HAVE SAID THEY WOULDN'T SUPPORT SUCH A MOVE TEXAS TGV ALREADY HAS SPENT SOME 30 MILLION TO 40 MILLION I CERTAINLY HATE TO SEE THE ENTIRE INVESTMENT WASTED MR PAYNE SAID IF THERE IS SOME WAY THE MONEY CAN BE USED FOR THE BENEFIT OF TEXAS I'D LIKE TO SEE THAT DONE 9312150131 931215 PEPPERAND SALT BUT I AM NOW WEARING THEIRS WAS MADE IN THE US 9312150130 931215 JACOBS GETS AIR FORCE JOB PASADENA CALIF JACOBS ENGINEERING GROUP INC SAID IT WAS AWARDED A CONTRACT BY THE US AIR FORCE CENTER FOR ENVIRONMENTAL EXCELLENCE BROOKS AIR FORCE BASE TEXAS TO PERFORM ENVIRONMENTAL ASSESSMENTS AND REMEDIAL DESIGNS AT AIR FORCE BASES ACROSS THE COUNTRY THE CONTRACT IS FOR ONE YEAR WITH FOUR ADDITIONAL ONEYEAR OPTIONS IF ALL OPTIONS ARE EXERCISED THE TOTAL VALUE OF THE CONTRACT COULD REACH 50 MILLION JACOBS SAID JACOBS IS AN ENGINEERING DESIGN ENVIRONMENTAL AND HAZARDOUSWASTEMANAGEMENT AND CONSTRUCTION CONCERN 9312150129 931215 YIELDS ON CDS ENDED WEEK LITTLE CHANGED NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS WERE LITTLE CHANGED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS AT MAJOR BANKS EASED TO 274 FROM 275 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS REMAINED AT 446 THE WILMINGTON DEL INFORMATION SERVICE SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE REMAINED AT 282 ON FIVEYEAR JUMBOS THE AVERAGE INCHED UP TO 465 FROM 463 ACCORDING TO BANXQUOTE AT MAJOR BROKERAGE FIRMS THE AVERAGE YIELD ON SIXMONTH CDS ROSE TO 328 FROM 323 ACCORDING TO BANXQUOTE ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD INCREASED TO 462 FROM 456 THE SURVEY SAID 9312150128 931215 COMMODITIES PETROLEUM PRICES INCH UPWARD AFTER OMAN VOWS TO CUT PRODUCTION BY 10 BEGINNING IN JANUARY BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL OIL PRICES EDGED UPWARD ON NEWS THAT OMAN A PERSIAN GULF OIL PRODUCER PLEDGED TO CUT ITS OUTPUT BY AS MUCH AS 10 TO PROP UP OIL PRICES THE CUTBACK BEGINNING IN JANUARY COULD REMOVE 80000 BARRELS OF PRODUCTION DAILY FROM THE MARKET THE PROMISE BY OMAN WHICH IS NOT A MEMBER OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WAS SEEN BY SOME MARKET PARTICIPANTS AS A POSITIVE DEVELOPMENT BUT OTHERS SAID THE GESTURE WAS ALMOST MEANINGLESS IN SUCH A GLUTTED MARKET ALSO AN AMERICAN PETROLEUM INSTITUTE REPORT RELEASED AFTER TRADING YESTERDAY SHOWED A SLIGHT DECLINE IN INVENTORIES OF DISTILLATE OR HEATING OIL LAST WEEK IT SHOWED HEATINGOIL STOCKS SLIPPING BY 858000 BARRELS TO 14480 MILLION BARRELS MARKET PARTICIPANTS HAD EXPECTED THOSE NUMBER TO SHOW AN INCREASE THE REPORT SHOWED US CRUDE OIL STOCKS ROSE BY 605 MILLION BARRELS TO 34539 MILLION BARRELS DURING THE PERIOD AND GASOLINE STOCKS ROSE 790000 BARRELS LAST WEEK TO 22335 MILLION BARRELS IN VOLATILE TRADING YESTERDAY CRUDE OIL FOR JANUARY DELIVERY SLIPPED AS LOW AS 1422 A BARREL BUT FINALLY SETTLED AT 1452 A BARREL UNCHANGED JANUARY HEATING OIL EDGED UP SIX POINTS A GALLON TO SETTLE AT 4386 CENTS A GALLON GASOLINE FOR JANUARY EDGED UP BY 27 POINTS TO FINISH AT 3958 CENTS A GALLON OMANI OIL MINISTER SAEED BIN AHMED ALSHANFARI SAID HE WILL VISIT OTHER NONOPEC PRODUCERS TO URGE THEM TO PARE BACK PRODUCTION OMAN IS THE ORIGINATOR OF A GROUP OF NONOPEC PRODUCERS THAT HAS MET OVER THE LAST FEW YEARS TO ASSESS THE MARKET AND OIL PRICES IT'S UNLIKELY HOWEVER THAT HE WILL GAIN MUCH SUPPORT FOR OUTPUT CUTS FROM NONOPEC OIL PUMPERS SUCH AS NORTH SEA PRODUCERS NORWAY AND THE UK IN FACT A SPURT IN NORTH SEA OIL PRODUCTION THE PAST FEW MONTHS HAS BEEN CITED AS A REASON FOR GLOBAL OVERSUPPLY AND WEAK OIL PRICES NORWAY AND THE UK PREVIOUSLY REJECTED SUGGESTIONS TO SLASH PRODUCTION AND PROBABLY WILL MAINTAIN THAT POSITION DESPITE THE RECENT PRICE SLIDE MARKET PARTICIPANTS ALSO EXPECT OPEC TO STAND PAT ON ITS DECISION NOT TO REDUCE OUTPUT AT A RECENT MEETING OF OPEC'S ARAB MEMBERS SAUDI ARABIA LET IT BE KNOWN THAT IT WOULDN'T ATTEND ANY EMERGENCY MEETING PRIOR TO THE SCHEDULED GATHERING IN MARCH IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS CORN FUTURES PRICES ROSE AFTER THE CLINTON ADMINISTRATION APPARENTLY CONCEDED THAT USE OF THE CORNDERIVED ETHANOL FUEL ADDITIVE COULD CONTINUE IN THE SMOGGIEST US CITIES AT THE CHICAGO BOARD OF TRADE CORN FOR MARCH DELIVERY SETTLED AT 2935 A BUSHEL UP 225 CENTS PRICES HAD BEEN DOWN EARLIER IN THE TRADING SESSION ON EXPECTATIONS THAT THE US ENVIRONMENTAL PROTECTION AGENCY WOULD RESTRICT THE USE OF ETHANOL IN EIGHT POLLUTED CITIES SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO BUT JUST BEFORE THE CBOT'S GRAIN MARKET CLOSED FOR THE DAY AN AIDE TO PRESIDENT CLINTON ANNOUNCED AN AMENDMENT TO THE FEDERAL CLEAN AIR ACT ALLOWING CONTINUED USE OF ETHANOL IN THOSE CITIES MR BASSE SAID COPPER COPPER FUTURES PRICES FELL ON WORRIES THAT THEY HAVE RISEN QUICKER THAN THE PACE OF THE US ECONOMIC RECOVERY AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR MARCH DELIVERY WAS DOWN 115 CENTS TO 7945 CENTS A POUND COPPER FUTURES PRICES HAVE CLIMBED IN RECENT WEEKS BECAUSE OF GAINS IN THE US ECONOMY THE METAL IS USED BY MANY US INDUSTRIES INCLUDING HOUSING AND ITS FORTUNES TEND TO IMPROVE WHEN THE ECONOMY DOES CONSEQUENTLY PRICES RAN UP VERY FAST ON OPTIMISM OVER THE IMPROVING US ECONOMY TALK OF FAR EAST DEMAND AND TIGHT SCRAP SUPPLIES SAID BERNARD SAVAIKO COPPER ANALYST FOR PAINEWEBBER INC BUT THE MARKET APPEARS TO HAVE RUN UP TOO FAR TOO FAST ONE PROBLEM FOR THE MARKET MR SAVAIKO SAID IS TALK AMONG COPPER PRODUCERS OF RAISING OUTPUT 9312150127 931215 DIVIDEND NEWS INTERNATIONAL FLAVORS & FRAGRANCES INC INTERNATIONAL FLAVORS & FRAGRANCES INC NEW YORK DECLARED A 3FOR1 STOCK SPLIT AND BOOSTED THE QUARTERLY DIVIDEND 8 SHAREHOLDERS OF RECORD DEC 28 WILL RECEIVE TWO SHARES FOR EACH SHARE HELD WITH CERTIFICATES TO BE DISTRIBUTED JAN 19 DIRECTORS ALSO INCREASED THE QUARTERLY CASH DIVIDEND TO 81 CENTS FROM 75 CENTS ON PRESPLIT SHARES PAYABLE JAN 11 TO SHARES OF RECORD DEC 28 THE DIVIDEND IS EQUAL TO 27 CENTS AFTER THE SPLIT 9312150125 931215 MOTION WORKS UNIT SETS PACT VANCOUVER BRITISH COLUMNBIA MOTION WORKS INTERNATIONAL A UNIT OF MOTION WORKS CORP SAID IT SIGNED A DEVELOPMENT AGREEMENT WITH THE EAKIDS DIVISION OF ELECTRONIC ARTS INC MOTION WORKS SAID IT WILL DEVELOP A CDROM SOFTWARE TITLE FOR EAKIDS TO PUBLISH AND WILL RECEIVE AN ADVANCE AGAINST ROYALTY PAYMENTS AND THEN A ROYALTY ON SALES OF THE PRODUCT AFTER THE ADVANCE ROYALTIES ARE EARNED OUT THE COMPANY SAID IT SIGNED A NONDISCLOSURE DEVELOPMENT AGREEMENT WITH ELECTRONIC ARTS AND WILL NOT DISCLOSE FURTHER DETAILS ABOUT THE AGREEMENT OR PRODUCT 9312150124 931215 AMR UNIT DEVELOPS MACHINE TO DISPENSE TICKETS TO TRAVELERS FORT WORTH TEXAS AMERICAN AIRLINES SAID IT DEVELOPED AN ELECTRONIC PRINTER THAT WILL DISPENSE AIRLINE TICKETS IN A WAY SIMILAR TO HOW BANKS' AUTOMATIC TELLER MACHINES DISPENSE CASH TRAVELERS STILL WILL HAVE TO BUY AND RESERVE TICKETS FROM TRAVEL AGENTS AND AIRLINES BUT THE PRINTERS WILL ENABLE PASSENGERS TO PICK UP THE TICKET IN PLACES SUCH AS SHOPPING MALLS AND OFFICE LOBBIES THE SERVICE WILL BE AVAILABLE BY SUMMER ALTHOUGH THE AMR CORP UNIT DIDN'T DISCLOSE HOW MANY PRINTERS IT PLANS TO ROLL OUT SOME LARGE TRAVEL AGENCIES ALREADY DISTRIBUTE TICKETS TO TRAVELERS THROUGH STANDALONE PRINTERS WHAT IS DIFFERENT ABOUT AMERICAN'S SERVICE CALLED SABREXPRESS TICKETING IS THAT IT CAN BE USED BY ANY TRAVEL AGENCY OR AIRLINE AMERICAN SAID IT WILL CHARGE AGENCIES AND AIRLINES 3 TO 10 A TICKET AMR CORP'S AMERICAN AIRLINES HAS DEVELOPED AN ELECTRONIC TICKET DELIVERY NETWORK THAT WILL ENABLE AIRLINES AND TRAVEL AGENTS TO PRINT OUT AIRLINE TICKETS IN REMOTE LOCATIONS AN ARTICLE YESTERDAY INCORRECTLY REPORTED THAT AMERICAN HAD DEVELOPED AN AUTOMATIC TELLERLIKE TICKET MACHINE FOR CONSUMERS THE AIRLINE SAID SUCH A PRINTER IS UNDER DEVELOPMENT BUT NOT PART OF THE NEW NETWORK 9312150123 931215 NATIONAL TECHTEAM AGREEMENT DEARBORN MICH NATIONAL TECHTEAM INC SAID IT REACHED AN AGREEMENT WITH COREL CORP TO ESTABLISH A CORELDRAW COMPUTER SUPPORT CENTER AT NATIONAL TECHTEAM'S COMPUTER CUSTOMER SERVICE CENTER IN SOUTHFIELD MICH A TECHTEAM SPOKESMAN SAID THE ONEYEAR CONTRACT IS VALUED AT ABOUT 2 MILLION TECHTEAM SAID IT WILL PROVIDE CUSTOMER SUPPORT TO USERS OF COREL PRODUCTS IT SAID IT WILL IMMEDIATELY HIRE AND TRAIN ABOUT 30 SUPPORT AGENTS 9312150121 931215 FORD EXPECTS A RETURN TO PROFITABILITY AT ITS EUROPEAN OPERATIONS NEXT YEAR BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT FORD MOTOR CO EXPECTS ITS EUROPEAN OPERATIONS TO BE PROFITABLE NEXT YEAR AFTER THREE CONSECUTIVE YEARS IN THE RED A MORE BULLISH FORECAST THAN FORD HAS DISCLOSED IN THE PAST I AM QUITE CONFIDENT THAT FORD OF EUROPE WILL MAKE MONEY W WAYNE BOOKER THE EXECUTIVE VICE PRESIDENT IN CHARGE OF FORD'S INTERNATIONAL AUTO OPERATIONS SAID THIS WEEK FORD'S STOCK PRICE HAS SHOT UP LATELY BECAUSE OF ITS IMPROVING PERFORMANCE IN NORTH AMERICA BUT FORD OF EUROPE CONTINUES TO BE A DRAG ON EARNINGS FORD'S STOCK PRICE HIT A 52WEEK HIGH OF 6475 MONDAY THEN CLOSED AT 6350 YESTERDAY DOWN 125 IN LATE NEW YORK STOCK EXCHANGE TRADING AMID A BROADER STOCK MARKET DECLINE MR BOOKER ALSO SAID THAT FORD'S JAGUAR UNIT WOULD BE PROFITABLE IN THE VERY NEAR FUTURE THOUGH HE DECLINED TO BE MORE SPECIFIC FOR THE FIRST THREE QUARTERS OF THIS YEAR JAGUAR POSTED AN OPERATING LOSS OF 226 MILLION NARROWING ITS 309 MILLION LOSS A YEAR EARLIER JAGUAR HAS SLASHED COSTS AND IMPROVED QUALITY SINCE FORD BOUGHT IT FOR 25 BILLION IN 1990 ITS SALES IN THE US ARE UP ABOUT 43 SO FAR THIS YEAR FROM ANEMIC LEVELS A YEAR EARLIER MR BOOKER'S BULLISH FORECAST ON FORD OF EUROPE CAME JUST TWO WEEKS AFTER FORD'S NEW CHAIRMAN ALEXANDER J TROTMAN REFUSED TO PREDICT WHETHER THE UNIT WOULD GO BACK IN THE BLACK NEXT YEAR HOWEVER MR TROTMAN DID SAY THAT THE UNIT WAS PERFORMING SUBSTANTIALLY BETTER THIS YEAR BECAUSE OF AN AGGRESSIVE COSTCUTTING CAMPAIGN WHICH IS CUTTING THE UNIT'S WORK FORCE TO 83000 FROM 100000 ANALYSTS WERE ENCOURAGED BY MR BOOKER'S REMARKS BUT THEY WEREN'T RUSHING TO BOOST THEIR EARNINGS ESTIMATES SCOTT MERLIS OF MORGAN STANLEY WHO HAD BEEN PREDICTING A BREAKEVEN PERFORMANCE FOR FORD OF EUROPE NEXT YEAR ON IMPROVED VOLUME SAYS HE WANTS TO MAKE SURE MR BOOKER'S CLAIM IS CREDIBLE BEFORE HE CHANGES HIS FORECAST THAT FORD WILL EARN 29 BILLION OR 525 A SHARE IN 1994 FORD EXECUTIVES HAVE BEEN WRONG ABOUT FORD OF EUROPE'S TURNAROUND BEFORE A YEAR AGO MR TROTMAN THEN A FORD EXECUTIVE VICE PRESIDENT WAS PREDICTING A PROFIT FOR THE UNIT IN 1993 WHICH FORD NOW SAYS ISN'T GOING TO HAPPEN FOR THE FIRST THREE QUARTERS OF THIS YEAR FORD OF EUROPE POSTED A LOSS OF 102 MILLION COMPARED WITH A 264 MILLION PROFIT A YEAR EARLIER BUT NOW FORD'S COSTCUTTING IS BEGINNING TO BEAR FRUIT AND MR BOOKER SAYS FORD OF EUROPE CAN BE PROFITABLE EVEN IF EUROPEAN SALES DON'T BOUNCE BACK NEXT YEAR 9312150120 931215 POLITICS & POLICY SENATE ETHICS UNIT CLAIMS PACKWOOD ALTERED DIARIES BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE ETHICS COMMITTEE ACCUSED SEN BOB PACKWOOD OF ALTERING HIS PERSONAL DIARIES WHICH ARE UNDER SUBPOENA BY THE JUSTICE DEPARTMENT IN PAPERS FILED IN FEDERAL COURT COMMITTEE COUNSEL VICTOR BAIRD SAID THAT WHILE UNDER INVESTIGATION FOR ALLEGED SEXUAL HARASSMENT THE OREGON REPUBLICAN REPORTEDLY REVISED TAPERECORDED PORTIONS OF THE DIARIES BEFORE THEY COULD BE TRANSCRIBED THE SENATOR ALSO IS BEING INVESTIGATED FOR POSSIBLE CRIMINAL VIOLATIONS ACCORDING TO GOVERNMENT OFFICIALS MR BAIRD CITED A SWORN STATEMENT BY MR PACKWOOD'S SECRETARY CATHY WAGNER CORMACK SUBSEQUENT TO THE INITIATION OF THE ETHICS COMMITTEE INVESTIGATION THE SENATOR TOOK BACK SOME TAPES IN MY POSSESSION WHICH I HAD NOT YET TRANSCRIBED SHE SAID IN HER STATEMENT AT A LATER TIME IT APPEARED TO ME THAT HE MAY HAVE MADE SOME REVISIONS TO THOSE TAPES SUBSEQUENTLY HE CONFIRMED THAT HE HAD MS CORMACK SAID IN THE STATEMENT THAT SHE DIDN'T KNOW THE EXTENT OF THE CHANGES THE ETHICS COMMITTEE SAID MS CORMACK'S STATEMENT GREATLY ESCALATES THE URGENCY THAT THE COURT ENFORCE ITS SUBPOENA MR PACKWOOD'S DIARIES HAVE BECOME THE CENTER OF A PROTRACTED BATTLE THAT BEGAN LAST YEAR WHEN DOZENS OF WOMEN ACCUSED HIM OF SEXUAL HARASSMENT AND INTIMIDATION MR PACKWOOD REFERRED TO THE DIARIES IN COMMITTEE DEPOSITIONS HE WAS SEEKING TO BUTTRESS HIS DEFENSE AGAINST THOSE CHARGES THE SENATOR MADE PORTIONS OF THE DIARIES AVAILABLE FOR THE COMMITTEE COUNSEL TO REVIEW WITH HIS ATTORNEY PRESENT BUT IN THAT REVIEW ETHICS COMMITTEE STAFF MEMBERS STUMBLED UPON EVIDENCE OF POSSIBLE CRIMINAL ACTIVITY SEPARATE FROM THE HARASSMENT CHARGES SINCE THEN THE FOURTERM SENATOR HAS REFUSED TO RELINQUISH THE DIARIES PROMPTING THE SUBPOENAS FROM THE SENATE AND THE JUSTICE DEPARTMENT GOVERNMENT OFFICIALS HAVE SAID THAT THE DEPARTMENT IS INVESTIGATING NOTATIONS IN THE DIARIES ABOUT POSSIBLE JOB OFFERS FROM LOBBYISTS TO MR PACKWOOD'S WIFE DURING THE COUPLE'S DIVORCE PROCEEDINGS HIS FORMER WIFE GEORGIE PACKWOOD NEVER ACCEPTED ANY OF THE JOBS THE ETHICS COMMITTEE COURT FILING INCLUDED EVEN MORE ALLEGATIONS OF IMPROPRIETY OVER THE DIARIES THE COMMITTEE ALLEGED THAT MR PACKWOOD IMPROPERLY USED GOVERNMENT AND CAMPAIGN FUNDS TO PAY MS CORMACK TO CONTINUE TO TRANSCRIBE THE DIARIES AFTER SHE LEFT HER SENATE JOB THE PAYMENTS 2500 ANNUALLY VIOLATED SENATE RULES AS WELL AS CAMPAIGN FINANCE LAWS THE ETHICS COMMITTEE DOCUMENTS SAID NEITHER MR PACKWOOD NOR HIS ATTORNEY WERE AVAILABLE FOR COMMENT 9312150119 931215 DIVIDEND NEWS CONSOLIDATED NATURAL GAS CO CONSOLIDATED NATURAL GAS CO PITTSBURGH BOOSTED ITS QUARTERLY DIVIDEND TO 485 CENTS A SHARE FROM 48 CENTS THE NEW DIVIDEND IS PAYABLE FEB 15 TO HOLDERS OF RECORD JAN 14 SEPARATELY THE NATURALGAS CONCERN INCREASED ITS 1994 ANNUAL CAPITALEXPENDITURES BUDGET TO 410 MILLION FROM THIS YEAR'S 344 MILLION HOWEVER THE NEW BUDGET IS STILL BELOW CNG'S 1992 BUDGET OF 426 MILLION CNG SAID THE INCREASED 1994 CAPITAL BUDGET REFLECTS INCREASED FUNDING FOR EXPLORATION AND PRODUCTION ESPECIALLY FOR THE PREVIOUSLY ANNOUNCED POPEYE DEEPWATER PROJECT IN THE GULF OF MEXICO OF THE BUDGET 152 MILLION WILL BE USED FOR EXPLORATION AND PRODUCTION 97 MILLION FOR GAS TRANSMISSION 139 MILLION FOR GAS DISTRIBUTION AND 22 MILLION FOR OTHER CORPORATE PROJECTS 9312150118 931215 WORLD TRADE TALKS NO NAFTALIKE BATTLE SEEN IN CONGRESS OVER NEW PACT BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONGRESSIONAL APPROVAL OF A GLOBAL TRADE ACCORD WILL COME EASIER THAN IT DID FOR THE NORTH AMERICAN FREE TRADE AGREEMENT BUT EVERYTHING'S RELATIVE THE CLINTON ADMINISTRATION STILL FACES A NUMBER OF FIGHTS AHEAD THE RESULTS OF THE TRADE TALKS IN GENEVA LEFT SOME TEXTILESTATE LAWMAKERS FEELING DOUBLECROSSED AND DISMAYED SOME RUST BELT REPRESENTATIVES WHO HAVE SOUGHT TOUGHER ANTIDUMPING LAWS TO PROTECT THE STEEL AND OTHER IMPORTSENSITIVE INDUSTRIES ENVIRONMENTALISTS DIVIDED IN THE NAFTA FIGHT ARE UNITED IN THEIR OPPOSITION TO THE ACCORD NEGOTIATED UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND THERE'S DISAPPOINTMENT THAT THE FINANCIAL INDUSTRY AND OTHER SERVICES DIDN'T DRIVE A WEDGE INTO WORLD MARKETS WE'RE KEEPING OUR FINGERS CROSSED WE HOPE WE'RE NOT EMBARKING ON ANOTHER NAFTALIKE BATTLE SAID REP DAVID DREIER A CALIFORNIA REPUBLICAN AND GATT SUPPORTER JUST BACK FROM GENEVA BUT THERE'S NO DOUBT IN MY MIND THAT IT WILL BE APPROVED YOU JUST HAVE TO LOOK AT THE BIG PICTURE WHEN IT COMES TO THE GATT I DON'T THINK THE OUTCOME WILL BE IN DOUBT AGREED REP ROBERT MATSUI PREDICTING APPROVAL AS EARLY AS NEXT SUMMER BUT ADDED THE CALIFORNIA DEMOCRAT WHO WAS A LEADER IN THE PRONAFTA SIDE IN LAST MONTH'S DIVISIVE HOUSE VOTE THERE WON'T BE A LOT OF PASSION FOR IT EITHER CALIFORNIANS MATSUI AND DREIER FOR EXAMPLE EACH PROMISE TO CHEERLEAD FOR GATT AS THEY DID FOR NAFTA YET BOTH SHARE FRUSTRATION THAT HOLLYWOOD'S FILM AND ENTERTAINMENT INDUSTRY WASN'T ABLE TO BREAK DOWN FRENCH BARRIERS TO ITS PRODUCTS THE ADMINISTRATION AS A CONSEQUENCE IS BEING PRESSED TO TAKE UNILATERAL ACTION AGAINST THE FRENCH ON THE FILM INDUSTRY'S BEHALF IN A RELATED STEP THE ADMINISTRATION IS WEIGHING EXECUTIVE ACTION TO REINSTATE THE LAPSED SUPER 301 PROCEDURES THREATENING SANCTIONS AGAINST NATIONS AND INDUSTRIES DEEMED TO BE UNFAIR TRADING PARTNERS SOME OF THE STRONGEST OPPOSITION TO GATT IS EXPECTED FROM THE TEXTILE INDUSTRY AND FROM LAWMAKERS AND UNIONS REPRESENTING TEXTILE WORKERS THE TENTATIVE AGREEMENT FAILS TO DELIVER ON A PROMISE THAT MR CLINTON MADE TO ABOUT 10 HOUSE DEMOCRATS LAST MONTH TO OBTAIN THEIR VOTES FOR NAFTA HE PLEDGED THEN IN WRITING TO WORK FOR A 15YEAR PHASEOUT OF THE COMPLEX SYSTEM OF TEXTILE QUOTES BUT THE AGREEMENT CALLS FOR A 10YEAR PHASEOUT DEMOCRATIC REPS JOHN SPRATT OF SOUTH CAROLINA AND LEWIS PAYNE OF VIRGINIA UNSUCCESSFULLY PRESSED THE TEXTILE CAUSE IN GENEVA THEY WERE UNAVAILABLE FOR COMMENT AS WAS REP BILL HEFNER WHO WAS IN HIS NORTH CAROLINA DISTRICT BUT HEFNER AIDE IRENE SCHECTER SAID MR HEFNER IS VERY DISAPPOINTED SHE RECALLED THE PRESIDENT'S LETTER TO THE TEXTILESTATE LAWMAKERS AND SAID THE PRESIDENT PLEDGED TO TRY TO PUSH 15 YEARS FOR A PHASEOUT CITING REPORTS TO THE HEFNER OFFICE FROM INDUSTRY REPRESENTATIVES IN GENEVA SHE ADDED THE FEEDBACK WE'RE GETTING IS THEY DID NOT PUSH HARD ENOUGH BUT MR MATSUI DEFENDING THE ADMINISTRATION INSISTED WE TRIED WE JUST RAN UP AGAINST A BRICK WALL PRESIDENT CLINTON WON'T SEND CONGRESS THE PROPOSED LANGUAGE IMPLEMENTING THE GATT ACCORD UNTIL APRIL SO A VOTE IS EXPECTED NO EARLIER THAN AUGUST AND ALTHOUGH APPROVAL IS WIDELY PREDICTED THE DELIBERATIONS OF THE HOUSE AND SENATE TRADE PANELS ARE EXPECTED TO BE MORE CONTENTIOUS THAN THEY WERE FOR NAFTA THAT'S ESPECIALLY TRUE FOR THE ANTIDUMPING PROVISIONS THE STEEL AND OTHER HEAVY INDUSTRIES SEEK THE TOUGHEST LANGUAGE POSSIBLE WHILE MAJOR US EXPORTERS FARMEQUIPMENT MAKERS AND AGRIBUSINESSES SUCH AS CARGILL INC FOR EXAMPLE FEAR THAT OTHER NATIONS COULD INVOKE OVERLY STRINGENT RULES AGAINST THEM A NUMBER OF REPUBLICAN LAWMAKERS LED BY HOUSE GOP LEADERS ROBERT MICHEL WHOSE ILLINOIS DISTRICT IS HOME TO CATERPILLAR INC AND NEWT GINGRICH OF GEORGIA LOBBIED IN GENEVA FOR EASING ANTIDUMPING RULES BUT SEVERAL KEY DEMOCRATS SUCH AS HOUSE MAJORITY LEADER RICHARD GEPHARDT OF MISSOURI AND SEN JAY ROCKEFELLER OF WEST VIRGINIA WHO BOTH OPPOSED NAFTA WERE THERE TO SEEK A HARDER LINE IN AN EARLIER INTERVIEW IN GENEVA MR GEPHARDT SAID I HAVE WORRIES THAT THE THING WON'T WORK RIGHT THE PROBLEM HASN'T BEEN JUST TARIFFS BUT LACK OF ACCESS TO GET OUR BUSINESSES AND WORKERS ON A LEVEL PLAYING FIELD IN THE NAFTA FIGHT A MAJORITY OF MR CLINTON'S PARTY AND THE HOUSE DEMOCRATIC LEADERS OPPOSED HIM FORCING HIM TO RELY ON REPUBLICANS FOR VICTORY ON GATT AS WELL FREETRADER REPUBLICANS ARE LIKELY TO PROVIDE MOST OF THE VOTES IT ISN'T CLEAR YET HOW THE DEMOCRATIC LEADERSHIP WILL COME DOWN ON THE ISSUE REP GEPHARDT HAVING OPPOSED NAFTA CLEARLY WANTS TO BE ABLE TO SUPPORT GATT RATHER THAN BE SEEN AS PROTECTIONIST WHILE SEGMENTS OF ORGANIZED LABOR WILL FIGHT GATT OPPOSITION IS EXPECTED TO BE NEITHER AS BROAD NOR AS EMOTIONAL AS THAT AGAINST THE TRADE AGREEMENT WITH MEXICO YET AS HARDFOUGHT AS NAFTA WAS IT HAD SOME ADVANTAGES THAT GATT DOESN'T HAVE IN CONGRESS BUSINESS WAS GENERALLY MORE UNITED IN ITS SUPPORT FOR NAFTA WITH ITS PHASEOUT OF TARIFFS ON THE CONTINENT AND ENVIRONMENTALISTS WERE TOO DIVIDED TO BE AS EFFECTIVE AS THEY MIGHT HAVE BEEN WITH GATT REPRESENTATIVES OF GREEN GROUPS HELD THEIR FIRE YESTERDAY WHILE WAITING TO SEE THE FINAL LANGUAGE BUT THE ONLY REAL QUESTION WAS HOW STRONGLY THE GROUPS WOULD OPPOSE GATT WE WILL BE PLEASANTLY SURPRISED IF THEY WERE ABLE TO FIX PROVISIONS RELATED TO ENVIRONMENTAL PROTECTION SAID LARRY WILLIAMS OF THE SIERRA CLUB BUT PROBABLY THEY WERE NOT ABLE TO EVEN SO SAY LAWMAKERS AND STAFFERS ON BOTH SIDES THE 116NATION GATT IS EXPECTED TO PASS IF ONLY BECAUSE ITS GLOBAL BREADTH RAISES THE STAKES SO MUCH HIGHER THAN FOR NAFTA IT'LL PASS BECAUSE IT'LL JUST BE UNTHINKABLE IF IT DOESN'T SAYS REP SAM GIBBONS THE FREETRADER FLORIDA DEMOCRAT WHO HEADS THE HOUSE TRADE SUBCOMMITTEE IT WOULD BE AN ACT OF ECONOMIC SUICIDE AND POLITICAL SUICIDE FOR IT TO LOSE ASRA Q NOMANI IN GENEVA AND TIMOTHY NOAH IN WASHINGTON CONTRIBUTED TO THIS ARTICLE REPS BOB MICHEL AND NEWT GINGRICH WROTE A LETTER TO US TRADE REPRESENTATIVE MICKEY KANTOR WARNING AGAINST CHANGES IN ANTIDUMPING RULES THAT WOULD HURT AMERICAN EXPORTERS IN AN ARTICLE YESTERDAY ABOUT THE PROSPECTS FOR PASSAGE OF THE WORLD TRADE AGREEMENT IN CONGRESS IT WAS INCORRECTLY REPORTED THAT THE TWO HOUSE MEMBERS WERE IN GENEVA LOBBYING FOR EASIER ANTIDUMPING RULES 9312150117 931215 FINANCING BUSINESS FUTURE HEALTHCARE INC FUTURE HEALTHCARE INC CINCINNATI SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE PROPOSED SALE OF 800000 COMMON SHARES BY THE COMPANY AND 559500 COMMON SHARES BENEFICIALLY OWNED BY CHRISTOPHER L WHITE THE COMPANY SAID THE OFFERING WHICH IT EXPECTS TO COMPLETE IN JANUARY WILL BE COMANAGED BY GLASER CAPITAL CORP CINCINNATI AND MONNESS CRESPI HARDT & CO NEW YORK THE COMPANY HAS GRANTED UNDERWRITERS AN OPTION TO PURCHASE UP TO 80000 ADDITIONAL SHARES TO COVER OVERALLOTMENTS FUTURE HEALTHCARE CURRENTLY HAS 6176894 COMMON SHARES OUTSTANDING THE PROVIDER OF CLINICALTRIAL SERVICES TO THE PHARMACEUTICAL INDUSTRY SAID IT WILL USE PROCEEDS OF THE PROPOSED OFFERING TO REPAY ABOUT 11 MILLION PRINCIPAL AMOUNT OF CERTAIN DEBT AND TO IMPROVE CERTAIN COMPUTER TELECOMMUNICATIONS AND RELATED CAPITAL EQUIPMENT AND FOR WORKING CAPITAL 9312150116 931215 EDUSOFT GETS ORDER FOR SCHOOLS TEL AVIV EDUSOFT LTD GOT A PURCHASE ORDER VALUED AT ABOUT 33 MILLION FOR ITS EDUCATIONAL SOFTWARE FROM THE EDUCATION MINISTRY OF AN UNSPECIFIED LATIN AMERICAN COUNTRY THE COMPANY SAID IT WILL SUPPLY SCHOOLS RANGING FROM KINDERGARTENS TO COLLEGES WITH ITS EDUCATIONAL SOFTWARE PRODUCTS TRAINING SOFTWARE INSTALLATION AND PROJECTMANAGEMENT SERVICES EDUSOFT SAID DELIVERY IS SCHEDULED FOR THE CURRENT QUARTER AND THE FIRST TWO QUARTERS OF 1994 SEPARATELY THE COMPANY SAID IT GOT A 420000 PURCHASE ORDER FROM MEXICO UNDER WHICH IT WILL SUPPLY ITS MATHEMATICS SOFTWARE TO ABOUT 300 SCHOOLS DELIVERY IS SCHEDULED FOR THE END OF THIS YEAR 9312150115 931215 DIVIDEND NEWS TOTAL PETROLEUM NORTH AMERICA LTD TOTAL PETROLEUM NORTH AMERICA LTD SAID IT RESUMED PAYING ITS QUARTERLY COMMON STOCK DIVIDEND ALBEIT AT HALF THE FORMER RATE THE DENVER ENERGY COMPANY DECLARED A DIVIDEND OF FIVE CENTS A SHARE PAYABLE JAN 20 TO STOCK OF RECORD JAN 7 DANIEL VALOT CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY APPEARED TO BE COMPLETING 1993 WITH A SIGNIFICANT IMPROVEMENT IN OPERATING RESULTS AND THAT PAYMENT OF THE DIVIDEND REFLECTED THE BOARD'S CONFIDENCE IN THE COMPANY'S FUTURE TOTAL LAST PAID A COMMON DIVIDEND IN SEPTEMBER 1992 OF 10 CENTS A SHARE THE US AFFILIATE OF PARISBASED TOTAL SA SUSPENDED DIVIDEND PAYMENTS STARTING WITH THE FOURTH QUARTER OF 1992 BECAUSE IT SAID SHORTTERM EARNINGS PROSPECTS WERE UNCERTAIN BECAUSE OF THE ECONOMIC SLOWDOWN AND INCREASINGLY COSTLY REGULATIONS 9312150114 931215 WORLD TRADE TALKS JAPAN'S NOVEMBER SURPLUS SHRANK FOR FIRST TIME IN NEARLY 3 YEARS BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S TRADE SURPLUS EDGED LOWER LAST MONTH FOR THE FIRST TIME IN NEARLY THREE YEARS PROMPTING ANALYSTS TO SAY THE POLITICALLY TROUBLESOME SURPLUS MAY ACTUALLY SHRINK NEXT YEAR THE FINANCE MINISTRY SAID JAPAN'S TRADE SURPLUS WITH THE REST OF THE WORLD NARROWED TO 74 BILLION IN NOVEMBER DOWN 22 FROM 756 BILLION A YEAR EARLIER IT MARKS THE FIRST SUCH DECLINE SINCE DECEMBER 1990 A MINISTRY OFFICIAL SAID THE SURPLUS HAS CLEARLY PEAKED SAID DONALD KIMBALL SENIOR ECONOMIST AT MITSUBISHI BANK IT'S GOING TO BE UP AND DOWN FOR THE NEXT FEW MONTHS BUT IT'S LIKELY TO FALL AS WE GET INTO NEXT YEAR MINISTRY SPOKESMEN SAID MUCH OF THE REVERSAL STEMS FROM A STRONGER YEN WHICH MAKES JAPANESE GOODS LESS COMPETITIVE IN FOREIGN MARKETS WHILE MAKING IMPORTS LESS EXPENSIVE JAPAN'S TRADING PARTNERS PARTICULARLY THE US HAVE LONG SAID THE IDEAL WAY TO NARROW JAPAN'S SURPLUS IS BY OPENING ITS DOMESTIC MARKETS TO FOREIGN GOODS JAPAN TOOK A LANDMARK STEP THIS WEEK BY AGREEING TO EASE ITS MOST SYMBOLIC TRADE RESTRICTION A VIRTUAL BAN ON RICE IMPORTS LIFTING THE BAN WAS JAPAN'S CONTRIBUTION TO THE SOCALLED URUGUAY ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE THAT IS SUPPOSED TO BE CONCLUDED WEDNESDAY THE RICE MOVE ANALYSTS SAY WILL ONLY INCREASE TRADING PARTNERS' HOPES THAT PRIME MINISTER MORIHIRO HOSOKAWA WILL MAKE FURTHER STEPS TO REDUCE JAPAN'S TRADE SURPLUS MR HOSOKAWA HOWEVER HAS HIS HANDS FULL WITH PROBLEMS RANGING FROM STALLED POLITICAL REFORM TALKS TO SLUMPING ECONOMIC GROWTH AS A RESULT MORE PROGRESS ON SPECIFIC STEPS TO LOWER THE TRADE SURPLUS WILL BE SLOW IN COMING THE NOVEMBER SURPLUS TO BE SURE IS STILL TOO LARGE TO ALTER FORECASTS FOR 1993 WHICH PREDICT JAPAN'S SURPLUS WILL HIT A RECORD HIGH OF WELL OVER 100 BILLION EVEN WORSE JAPAN'S SURPLUS IN NOVEMBER WHILE NARROWING ON A GLOBAL BASIS GREW BY ALMOST 12 WITH THE US TO 43 BILLION BECAUSE OF THAT THE NOVEMBER DECLINE WILL OFFER LITTLE SOLACE TO TRADE NEGOTIATORS CURRENTLY INVOLVED IN A ROUND OF FRACTIOUS TRADE TALKS WITH US COUNTERPARTS PUSHING FOR GREATER ACCESS TO JAPANESE MARKETS EVEN WITHOUT ALLEGED BARRIERS TO TRADE HOWEVER ECONOMISTS SAY THAT JAPAN'S PROLONGED ECONOMIC SLUMP MAKES IT DIFFICULT FOR THE GOVERNMENT TO PROMOTE IMPORTS A STRONG YEN WHICH CLINTON ADMINISTRATION OFFICIALS ENCOURAGED AS A MEANS OF NARROWING THE TRADE GAP HAS MADE THE SLUMP WORSE BY ERODING PROFITS AT EXPORTERS MEASURED IN THE VOLUME OF GOODS TRADED EXPORTS FELL 34 IN NOVEMBER WHILE IMPORTS ROSE 88 MORE IMPORTS INTO JAPAN IS GOOD NEWS BUT DECLINING EXPORTS IS BAD NEWS BECAUSE IT SHOWS THE WEAKNESS OF THE ECONOMY SAID MICHAEL HARTNETT ECONOMIST AT SCHRODER SECURITIES THE STRONG YEN IS BEGINNING TO BITE MOREOVER ECONOMISTS SAY JAPAN'S SURPLUS WITH THE US DURING NOVEMBER STEMS FROM THE RELATIVE HEALTH OF THE US ECONOMY STRONG US DEMAND IS SUCKING IN JAPANESEMADE SEMICONDUCTORS AND EQUIPMENT FOR NEW PLANTS AND OFFICES DESPITE HIGHER PRICES ON SUCH GOODS BECAUSE OF THE STRONG YEN MEANWHILE JAPANESE VEHICLE AND AUTO EXPORTS FELL ON A GLOBAL LEVEL IN NOVEMBER IMPORTS OF FOREIGN CARS INTO JAPAN WHILE STILL RELATIVELY LOW EDGED HIGHER THE FINANCE MINISTRY SAID 9312150113 931215 WHO'S NEWS AETNA'S THREE EXECUTIVE VICE PRESIDENTS VIE TO SUCCEED RETIRING CHAIRMAN IN '97 BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL HARTFORD CONN AETNA LIFE AND CASUALTY CO SET UP A HORSE RACE AMONG THREE EXECUTIVES TO SUCCEED CHAIRMAN AND CHIEF EXECUTIVE OFFICER RONALD COMPTON WHO IS SCHEDULED TO RETIRE IN 1997 THE FRONTRUNNER APPEARS TO BE GARY BENANAV 48 YEARS OLD WHO HEADS AETNA'S INTERNATIONAL OPERATIONS AS WELL AS ITS LIFE INSURANCE AND ANNUITY OPERATION THIS WEEK HE WAS GIVEN THE ADDITIONAL JOB OF RUNNING THE COMPANY'S STRUGGLING PROPERTY AND CASUALTY BUSINESS SUCCEEDING DAVID KOCHER 52 WHO RESIGNED TO PURSUE OTHER INTERESTS GIVING BENANAV A BIG JOB LIKE PROPERTY AND CASUALTY IS A TEST SAID ANALYST ALAN LEVIN OF STANDARD & POOR'S CORP MR BENANAV'S COMPETITORS ARE DANIEL KEARNEY 54 WHO RUNS AETNA'S INVESTMENT AND PENSION AREA AND JAMES MCLANE 54 WHO RUNS AETNA'S HEALTHCARE OPERATIONS EACH OF THE THREE WAS NAMED EXECUTIVE VICE PRESIDENT THIS WEEK NEW POSITIONS WITHIN AETNA MR COMPTON 61 WHO JOINED AETNA IN 1954 TURNS 65 AETNA'S MANDATED RETIREMENT AGE IN FEBRUARY 1997 HE TOOK THE JOB OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN MARCH 1992 HE IS TRYING TO GET AETNA ONE OF THE COUNTRY'S LARGEST INSURERS ON A TRACK OF SUSTAINED PROFITABILITY BY GETTING EACH OF ITS MANY BUSINESSES TO PAY CLOSER ATTENTION TO THE BOTTOM LINE IN RECENT QUARTERS PROFIT HAS IMPROVED AS EXTENSIVE LAYOFFS TRANSLATE INTO COST SAVINGS AMONG THE MANY CHALLENGES FACING AETNA WITH 98 BILLION IN ASSETS AND 8 BILLION IN SHAREHOLDER'S EQUITY IS THE CONTINUING PROFIT DRAG FROM DELINQUENT REAL ESTATE MORTGAGES SEEMINGLY BOTTOMLESS LOSSES ON POLLUTION CLAIMS AND THE UNCERTAINTY SURROUNDING HEALTHCARE REFORM MR BENANAV JOINED AETNA IN 1972 IN THE LEGAL DEPARTMENT HE LATER BECAME TREASURER AND HAD RESPONSIBILITY FOR AETNA'S BANKING CORPORATE FINANCE TREASURY AND SHORTTERM INVESTMENT ACTIVITIES HE TOOK OVER INTERNATIONAL OPERATIONS IN 1989 ANALYSTS SAID MR BENANAV HAS THE BEST SHOT AT SUCCEEDING MR COMPTON PARTLY BECAUSE HE HAS BEEN WITH AETNA THE LONGEST MR KEARNEY CAME TO AETNA IN 1991 AFTER A BRIEF BUT FIERY STINT RUNNING THE RESOLUTION TRUST CORP HE HAS ALSO WORKED FOR ALDRICH EASTMAN & WALTCH INC IN BOSTON A PENSIONFUND ADVISER AND WAS A MANAGING DIRECTOR AT SALOMON BROTHERS INC HE ALSO SERVED A TERM AS PRESIDENT OF THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MR MCLANE ALSO JOINED AETNA IN 1991 HE HAD BEEN A SENIOR EXECUTIVE AT CITICORP WHERE HE HEADED THE GLOBAL INSURANCE DIVISION FROM 1972 TO 1974 HE WORKED IN THE WHITE HOUSE SERVING AS DEPUTY DIRECTOR OF THE COUNCIL THAT RAN PRESIDENT NIXON'S WAGE AND PRICE CONTROL PROGRAM AMONG HIS CURRENT PRIORITIES IS DEFEATING THE PREMIUM CAPS WHICH HE PERCEIVES AS PRICE CONTROLS IN THE CLINTON HEALTHCARE PLAN 9312150112 931215 INSIDE TRACK BORDEN ACTIVISTS' SUCCESS RAISES FAIRNESS QUESTION BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL EVEN AS TWO MONEY MANAGEMENT FIRMS WITH LARGE STAKES IN BORDEN INC WERE PRESSING FOR CHANGE AT THE COMPANY THEY WERE ADDING SIGNIFICANTLY TO THEIR BORDEN HOLDINGS RAISING QUESTIONS AMONG SOME EXPERTS AND INVESTORS ABOUT THE FAIRNESS OF SUCH ACTIONS FOR MONTHS PRIOR TO BORDEN'S OUSTER OF ITS CHIEF EXECUTIVE OFFICER LAST WEEK PRINCIPALS AT DAVID J GREENE & CO AND INVISTA CAPITAL MANAGEMENT INC HAD BEEN URGING THE FOOD COMPANY TO TAKE STRONG MEASURES TO GET BACK ON TRACK BASED PARTLY ON A SENSE THAT THE COMPANY WAS RESPONDING TO THEIR PRESSURE THE TWO FIRMS ADDED AN EXTRA ONE MILLION SHARES TO THEIR ALREADY SUBSTANTIAL BORDEN HOLDINGS SO FAR THE EXTRA SHARES PURCHASED DURING THE PAST SEVERAL MONTHS HAVEN'T PAID OFF NOTICEABLY INDEED BORDEN'S STOCK HAS EDGED LOWER IN THE WEEK SINCE THE BOARD OUSTED ANTHONY D'AMATO CHIEF EXECUTIVE AND REPLACED HIM WITH ERVIN SHAMES BORDEN CLOSED YESTERDAY AT 1775 DOWN 50 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BUT SOME SHAREHOLDERS WHO DIDN'T PARTICIPATE IN THE LOBBYING CAMPAIGN ARE GROUSING THAT SUCH ACTIVISM LEAVES THEM AT A DISADVANTAGE BECAUSE THEY ARE HAVING TO BASE THEIR BUY AND SELL DECISIONS ON LESS INFORMATION THAN THE ACTIVISTS HAVE AND AS THE ACTIVISM OF BIG SHAREHOLDERS CONTINUES TO GROW THE QUESTIONS ABOUT FAIR TREATMENT OF ALL SHAREHOLDERS AND EQUAL ACCESS TO INFORMATION ARE BOUND TO INCREASE THERE ISN'T ANY SUGGESTION THAT THE BORDEN ACTIVISTS RECEIVED ANY MATERIAL NONPUBLIC INFORMATION FROM THE COMPANY BUT IT WOULD NOT TAKE A LOT TO GET INTO A SITUATION WHERE YOU HAVE THAT KIND OF INFORMATION SAYS SECURITIES LAWYER HARVEY PITT A FORMER SECURITIES AND EXCHANGE COMMISSION GENERAL COUNSEL EVEN AN INDICATION BY DIRECTORS THAT THEY FAVORED A SPECIFIC PROPOSAL BY ACTIVISTS WOULD PUT YOU IN DISCLOSURE NEVERNEVER LAND TO BE SURE MANY BORDEN INVESTORS WHO WEREN'T CLUED IN TO THE ACTIVISM SAY THEY DON'T CARE IF THE ACTIVIST MANAGERS GOT EXTRA ATTENTION FROM COMPANY OFFICIALS INDEED THEY HEARTILY APPLAUD THEM FOR TRYING TO BOOST THE STOCK PRICE OVERALL THE ACTIVISM GOT UNDER WAY LAST SUMMER BUT DID NOT BECOME WIDELY KNOWN UNTIL LAST WEEK ALAN I GREENE A MANAGING PARTNER AT HIS FATHER'S FIRM SAYS HE CANVASSED THE WATERFRONT TO IDENTIFY DISSATISFIED HOLDERS LIKE HIMSELF AND REPRESENTED THEIR VIEWS TO MANAGEMENT IN A MEETING IN MIDJULY ULTIMATELY HE SAYS MONEY MANAGEMENT FIRMS REPRESENTING 15 OF THE SHARES LENT THEIR NAMES TO HIS EFFORT INCLUDING INVISTA NEITHER MR GREENE NOR THE COMPANY WILL DISCLOSE THE FULL LIST BUT THE INCREASING ROLE OF SHAREHOLDER ACTIVISTS AND THEIR ACCESS TO CORPORATE EXECUTIVES AND DIRECTORS IN GENERAL IS WORRYING SOME OTHER INVESTORS JOHN BIGGS CHIEF EXECUTIVE OF THE GIANT TEACHERS INSURANCE AND ANNUITY ASSOCIATIONCOLLEGE RETIREMENT EQUITIES FUND ARGUES THAT THE USE OF GANG FORCE COULD UNDERMINE PUBLIC SUPPORT FOR CURRENT SHAREHOLDERCOMMUNICATION RULES LAST YEAR THE SEC REVISED RULES TO MAKE IT IMMENSELY EASIER FOR STOCKHOLDERS TO COMMUNICATE WITH EACH OTHER WITHOUT FILING ELABORATE DOCUMENTS WITH THE SEC IF PROFESSIONAL MONEY MANAGERS START MAKING A LOT OF MONEY AT THE PERCEIVED EXPENSE OF OTHERS MR BIGGS WORRIES THERE WILL BE A BACKLASH A MAJOR CONCERN IS THAT MONEY MANAGERS WILL FORM CLIQUES THAT ARE INVISIBLE TO OTHER SHAREHOLDERS ACCUMULATION OF ENOUGH OF A GANG FORCE COULD ITSELF BE SIGNIFICANT INFORMATION SAYS MR BIGGS THE SEC REQUIRES THAT INVESTORS ACTING IN CONCERT FILE DISCLOSURE FORMS IF THEY COLLECTIVELY HOLD MORE THAN 5 OF THE STOCK INVESTORS WHO ARE ACTING IN CONCERT BECOME SUBJECT TO TOUGH OVERSIGHT PROCEDURES SUCH AS REQUIREMENTS FOR FILING STATEMENTS OF THE GROUP'S INTENTIONS WHILE THE DEFINITION OF A GROUP IS THE SUBJECT OF LEGAL INTERPRETATION A DISTINCTION IS GENERALLY MADE BETWEEN THOSE JUST SHARING VIEWS ABOUT A COMPANY'S PERFORMANCE AND THOSE BANDING TOGETHER TO USE THEIR CLOUT TO FORCE PARTICULAR STEPS SAYS PETER ROMEO A SECURITIES LAWYER WITH HOGAN & HARTSON WASHINGTON DC THE LATTER MUST DO THE FILING MR GREENE SAYS THE BORDEN ACTIVISTS SCRUPULOUSLY REMAINED WELL ON THE NONFILING SIDE OF THE LAW IN HIS JULY MEETING WITH BORDEN MANAGEMENT AND INDEPENDENT DIRECTORS HE STRESSED THAT HE WAS PRESENTING VIEWS OF A WHOLE POTLOAD OF MANAGERS WHO WANTED TO SEE CHANGE BUT HE STEERED CLEAR OF THREATENING ACTION IF THE RECOMMENDATIONS WEREN'T FOLLOWED HE SAYS MR GREENE SAYS HIS ADDITIONAL BORDEN STOCK PURCHASES WERE TRIGGERED BY HIS CONCLUSION THAT THE COMPANY HAD FINALLY GOTTEN THE RUDE AWAKENING IT NEEDED TO TRULY REFORM ITSELF BUT AT NO POINT HE INSISTS DID THE COMPANY REVEAL ANY SPECIFIC STEPS IT WOULD TAKE AND IN FACT HE LEARNED OF MR D'AMATO'S OUSTER FROM THE DOW JONES NEWS SERVICE ALL TOLD HE ADDED MORE THAN 500000 SHARES SINCE JULY TO BRING HIS TOTAL TO 25 MILLION OR 18 OF SHARES OUTSTANDING THE WAKEUP CALL TO MANAGEMENT AND DIRECTORS CAME HE SAYS FROM TWO SOURCES POOR SECOND AND THIRDQUARTER EARNINGS AND PRODDING BY US AS LARGE SHAREHOLDERS MEANWHILE INVISTA OF DES MOINES IOWA ADDED ABOUT 444000 SHARES IN SEPTEMBER TO BRING ITS TOTAL TO MORE THAN 3 MILLION SHARES AFTER SECONDQUARTER EARNINGS WERE RELEASED IN LATE JULY THE MARKET OVERREACTED SAYS DOUG ANGSTROM AN INVISTA VICE PRESIDENT EXPLAINING HIS FIRM'S PURCHASE MR GREENE NOTES THAT THE STOCK HAD FALLEN BELOW THE COMPANY'S ESTIMATED BREAKUP VALUE TALKING TO MANAGEMENT IS OLD HAT FOR MR GREENE WHOSE FAMILY FIRM SPECIALIZES IN VALUE INVESTING THE STYLE INVOLVES OWNING COMPANIES FOR YEARS AT A STRETCH THE FIRM HAS SPOKEN OUT ABOUT FOIBLES AT OTHER COMPANIES INCLUDING AMERICAN EXPRESS CO AND MEDICAL CARE AMERICA INC HE SAYS CORPORATE MANAGEMENTS FREQUENTLY TOLD HIM TO GET LOST IN THE DAYS BEFORE THE SEC RULE CHANGE MADE ROUNDING UP SUPPORT EASIER MR GREENE'S EFFORTS AT BORDEN WEREN'T ENTIRELY HIDDEN BEFORE LAST WEEK WHEN MR GREENE SURFACED TO TAKE PARTIAL CREDIT FOR MR D'AMATO'S OUSTER PUBLISHED ACCOUNTS EARLIER IN THE YEAR REFERRED TO UNSPECIFIED SHAREHOLDER ACTIVISM AT BORDEN JOHN MCMILLIN A PROMINENT FOOD ANALYST AT PRUDENTIAL SECURITIES SAYS HE WAS AWARE OF THE GROUP BUT DOESN'T THINK BORDEN IS A STRONG INVESTMENT EVEN IF THE COMPANY RADICALLY RESTRUCTURES AS IT HAS OFTEN PUBLICLY SAID IT INTENDED TO DO 9312150111 931215 WHO'S NEWS VERSA TECHNOLOGIES INC VERSA TECHNOLOGIES INC RACINE WIS THOMAS A MAGULSKI 49 YEARS OLD WAS ELECTED PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR OF THIS MAKER OF SILICONERUBBER AND FLUIDPOWER PRODUCTS MR MAGULSKI WORKED AS A CONSULTANT TO THE COMPANY AND BEFORE THAT WAS VICE PRESIDENT OF INTERTECH RESOURCES INC IN CHICAGO HE SUCCEEDS MICHAEL N POWELL 45 WHO RESIGNED THE POSTS LAST WEEK OVER WHAT WERE DESCRIBED AS DIFFERENCES IN MANAGEMENT PHILOSOPHY WITH JAMES E MOHRHAUSER CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9312150110 931215 ECONOMY CLINTON SAYS IT WOULD BE A MISTAKE' FOR THE FED TO RAISE SHORTTERM RATES BY CARL JOHNSTON SPECIAL TO THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON SAID IT WOULD BE A MISTAKE FOR THE FEDERAL RESERVE TO INCREASE SHORTTERM INTEREST RATES BECAUSE THERE IS NO INFLATION TREND IN THIS ECONOMY MR CLINTON NOTED THAT CORE INFLATION A MEASURE OF INFLATION THAT EXCLUDES VOLATILE FOOD AND ENERGY PRICES IS AT QUITE A LOW LEVEL ENERGY PRICES ARE DECLINING THE EMPLOYMENT RATE IS 64 AND THERE IS LITTLE UPWARD PRESSURE ON WAGES THERE'S NO INDICATION THAT WE'RE FACING A RETURN OF INFLATION HE SAID IN AN INTERVIEW WITH A GROUP OF FINANCIAL REPORTERS NEARLY EVERY AMERICAN WOULD SAY WE NEED MORE JOBS AND HIGHER INCOMES THE PRESIDENT SAID SO UNTIL A COMBINATION OF EMPLOYMENT AND ECONOMIC ACTIVITY PRODUCES SOME REAL THREAT OF INFLATION IT WOULD BE INAPPROPRIATE FOR US TO CHOKE OFF AN ECONOMY THAT HAS ALREADY HAD A FALSE START OR TWO OVER THE PAST FEW YEARS MR CLINTON'S COMMENTS ARE THE CLOSEST HE HAS COME TO CRITICIZING THE FED THEY COME AMID WIDESPREAD EXPECTATION ON WALL STREET THAT THE FED WHICH HAS BEEN HOLDING INTEREST RATES AT HISTORICALLY LOW LEVELS WILL BEGIN TO MOVE THEM UP EARLY NEXT YEAR THE LATEST WHITE HOUSE ECONOMIC FORECAST ALSO ANTICIPATES A FED MOVE NEXT YEAR IN PUBLIC STATEMENTS FED OFFICIALS HAVE MADE CLEAR THAT THEY EXPECT TO MOVE INTEREST RATES UP AND THAT THEY WOULD LIKE TO PUSH INFLATION BELOW CURRENT LEVELS BUT THE OFFICIALS HAVEN'T SUGGESTED THAT A MOVE IS IMMINENT MR CLINTON APPEARED CONCERNED AS ARE SOME FED OFFICIALS ABOUT THE POSSIBILITY OF A REPEAT OF LAST YEAR'S ECONOMIC PERFORMANCE IN WHICH PERIODS OF ROBUST GROWTH WERE QUICKLY FOLLOWED BY PERIODS OF SLUGGISHNESS MR CLINTON GETS HIS FIRST CHANCE TO PUT SOMEONE ON THE SEVENMEMBER FED BOARD WHEN THE TERM OF REAGAN APPOINTEE WAYNE ANGELL EXPIRES IN JANUARY I WANT TO APPOINT SOMEONE FIRST OF ALL WHO HAS CREDIBILITY WHO HAS EXPERIENCE ACCOMPLISHMENT AND ABILITY MR CLINTON SAID AND HE ADDED I WANT TO APPOINT SOMEONE WHO UNDERSTANDS THAT THIS COUNTRY DOESN'T WANT TO EVER GET BACK INTO THE POSITION THAT WE WERE IN THE LATE 1970S AND EARLY 1980S WITH RAMPANT INFLATION BUT NEITHER DO WE WANT TO CURE INFLATION AT THE EXPENSE OF A CONTINUED CHRONIC RECESSION THAT GENERATES SITUATIONS THAT WE'VE HAD OVER THE LAST 20 YEARS AND REINFORCES THE INABILITY OF OUR NATION TO CREATE ENOUGH JOBS THE PRESIDENT REITERATED HIS OPPOSITION TO CONGRESSIONAL PROPOSALS TO ALTER THE STRUCTURE OF THE FED INCLUDING ONE TO GIVE HIM POWER TO NAME THE PRESIDENTS OF THE 12 FED DISTRICT BANKS WHO PARTICIPATE IN SETTING INTEREST RATES THE BANK PRESIDENTS CURRENTLY ARE PICKED BY PRIVATESECTOR BOARDS SUBJECT TO APPROVAL BY THE FEDERAL RESERVE BOARD MEMBERS OF THE FEDERAL RESERVE BOARD ARE NOMINATED BY THE WHITE HOUSE AND CONFIRMED BY THE SENATE I STILL FAVOR THE INDEPENDENCE OF THE FED MR CLINTON SAID ANY SYSTEM IS SUBJECT TO ABUSE AND ALSO SUBJECT TO HUMAN ERROR BUT I THINK ON BALANCE THIS SYSTEM HAS SERVED WELL AND I DON'T THINK WE SHOULD DO AWAY WITH IT IN SEPARATE INTERVIEWS BOTH MR CLINTON AND TREASURY SECRETARY LLOYD BENTSEN SAID THAT THE TREASURY'S PROPOSAL TO TRANSFER SOME OF THE FED'S BANKREGULATION DUTIES TO A NEW AGENCY WON'T WEAKEN THE CENTRAL BANK'S ABILITY TO MANAGE THE ECONOMY DESPITE THE FED'S PROTESTS TO THE CONTRARY WE ARE VERY MUCH INTERESTED IN THE FED CONTINUING AS AN INDEPENDENT AGENCY AND HAVING ACCESS TO THE INFORMATION TO MAKE THE PROPER DECISIONS REGARDING MONETARY POLICY AND WE HAVE PUT THAT INTO OUR LEGISLATION MR BENTSEN SAID WHAT SECRETARY BENTSEN IS TRYING TO DO WITH HIS PROPOSED REFORMS IS NOT UNDERMINING THE INDEPENDENCE OF THE FED MR CLINTON SAID I KNOW THAT HE WOULDN'T KNOWINGLY DO ANYTHING THAT WOULD STOP THEM FROM DOING WHAT THEY HAVE TO DO 9312150109 931215 TVX GOLD ISSUING NEW SHARES TORONTO TVX GOLD INC SAID IT EXPECTS TO RAISE 2013 MILLION CANADIAN DOLLARS US1516 MILLION FROM THE SALE TO A GROUP OF UNDERWRITERS OF 23 MILLION NEW SHARES AT C875 EACH THE UNDERWRITING GROUP LED BY BURNS FRY LTD WILL RESELL THE SHARES IN CANADA AND OUTSIDE NORTH AMERICA THE ISSUE EXPECTED TO BE COMPLETED NEXT MONTH IS SUBJECT TO REGULATORY APPROVAL TVX GOLD SAID IT WILL USE THE PROCEEDS FOR MINING EXPLORATION AND FOR POTENTIAL ACQUISITIONS OF NEW MINERAL DEPOSITS THE MINING CONCERN HAS 135 MILLION SHARES OUTSTANDING IN TRADING ON THE NASDAQ STOCK MARKET YESTERDAY TVX GOLD SHARES CLOSED AT 6375 DOWN 3125 CENTS 9312150108 931215 CALPERS TO INVEST IN ASSETS OF UNDERPERFORMING FIRMS SACRAMENTO CALIF THE DIRECTORS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM VOTED TO CREATE A RELATIONSHIP INVESTING FUND TO TURN AROUND UNDERPERFORMING COMPANIES THE DIRECTORS OF THE 80 BILLION PENSION PLAN BELIEVE THEY CAN IMPROVE FINANCIAL PERFORMANCE AT THE COMPANIES BY URGING MANAGEMENT TO ADOPT BETTER CORPORATEGOVERNANCE PRACTICES IT WILL BE AN ADJUNCT TO THE CORPORATEGOVERNANCE ACTIVITIES ALREADY EXISTING AT THE GIANT PENSION FUND SAID DEWITT BOWMAN CHIEF INVESTMENT OFFICER THE DIRECTORS APPROVED THE CONCEPT MONDAY EARLIER THIS YEAR CALPERS COMMITTED A TOTAL OF 200 MILLION TO TWO RELATIONSHIP FUNDS BEING RUN BY INVESTMENT BANKING FIRMS IN BOTH THOSE FUNDS THE FIRMS' REPRESENTATIVES WILL TAKE BOARD SEATS AT COMPANIES WHERE INVESTMENTS ARE MADE MR BOWMAN SAID THE CALPERSRUN FUND IN CONTRAST WOULD NOT INVOLVE BOARD SEATS IT IS NOT REALLY THAT ACTIVIST HE SAID OF CALPERS' CONCEPT FOR ITS OWN FUND CALPERS DECLINED TO SAY HOW MUCH MONEY IT WILL ALLOCATE TO THE FUND 9312150107 931215 GREAT WESTERN FINANCIAL SALE CHATSWORTH CALIF GREAT WESTERN FINANCIAL CORP SAID THAT IT HAS COMPLETED THE SALE OF 122 MILLION OF HOME MORTGAGES AND REAL ESTATE TO AN UNIDENTIFIED FINANCIAL SERVICES COMPANY AND THE SALE OF 173 MILLION OF COMMERCIAL LOANS TO A FUND MANAGED BY GOLDMAN SACHS & CO TERMS WEREN'T DISCLOSED A LOSS PROVISION OF 100 MILLION WAS ESTABLISHED IN THE THIRD QUARTER FOR BULK SALES BY WHICH THE COMPANY INTENDS TO SHED 16 BILLION IN TROUBLED ASSETS THIS YEAR 9312150106 931215 ENTERPRISE FAST TRACK DIMAC WALKS THE EXTRA MILE FOR A DIVERSITY OF CLIENTS SMALL DIRECTMARKETING CONCERN THRIVES BY OFFERING UNEXPECTED SERVICES BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL ST LOUIS WHEN BLOCKBUSTER VIDEO HIRED DIMAC CORP TO HANDLE A ROUTINE CUSTOMER MAILING IN DALLAS TWO YEARS AGO ALL THE VIDEORENTAL CHAIN EXPECTED WAS THE ROUTINE MAILING DIMAC PERSUADED THE CHAIN THAT IT COULD DO CONSIDERABLY MORE AND TO PROVE THE POINT DIMAC BEGAN TO DESIGN BLOCKBUSTER'S DIRECTMAIL MATERIAL AS WELL LAST YEAR DIMAC'S NEW FRIENDSHIP ADVANCED FURTHER USING SPECIALIZED SOFTWARE THE SMALL DIRECTMARKETING COMPANY HELPED THE UNIT OF BLOCKBUSTER ENTERTAINMENT CORP IDENTIFY POTENTIAL CUSTOMERS FOR NEW STORES AROUND THE US NOW A BLOCKBUSTER OFFICIAL SAYS THE FORT LAUDERDALE FLA COMPANY DOESN'T OPEN ANY NEW STORES WITHOUT FIRST CONSULTING DEMOGRAPHIC DATA FROM DIMAC SUCH MARKETING EFFORTS HAVE HELPED DIMAC GROW FAST IN THE HIGHLY FRAGMENTED DIRECTMARKETING INDUSTRY DIMAC THRIVES BECAUSE IT HAS ACQUIRED SOME KEY SERVICE PROVIDERS AND IT OFFERS ADDITIONAL SERVICES THAT THE CUSTOMER DIDN'T ORIGINALLY EXPECT AT A TIME WHEN SALES OF MOST DIRECTMAIL COMPANIES ARE CLIMBING AN AVERAGE OF 6 TO 7 A YEAR DIMAC SAYS ITS SALES HAVE INCREASED MORE THAN 18 ANNUALLY FOR THE PAST FIVE YEARS IT'S TAKEN US A LONG TIME TO GET HERE SAYS MICHAEL MCSWEENEY PRESIDENT OF DIMAC WHICH STARTED 72 YEARS AGO AS A COMMERCIAL PRINTING CONCERN SINCE TAKING THE HELM IN 1988 MR MCSWEENEY HAS TRANSFORMED DIMAC FROM A RUNOFTHEMILL DIRECT MAILER INTO A SOPHISTICATED HIGHTECH PROVIDER OF DIRECT RESPONSE SERVICES THESE SERVICES GO BEYOND TYPICAL DIRECT MAILINGS BY ASKING CUSTOMERS TO RESPOND DIRECTLY TO MARKETERS DIMAC SAYS ITS CLIENTS NOW INCLUDE OTHER BIG CORPORATIONS SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO AND AMERICAN EXPRESS CORP TUCKED AWAY IN AN INDUSTRIAL PARK HERE DIMAC HAS A FAIRLY UNSOPHISTICATED LOOK MUCH OF ITS 300000 SQUARE FEET OF SPACE IS JAMMED WITH PRINTERS AND MAILING MACHINES STACKS OF PROMOTIONAL BROCHURES ENVELOPES POSTAL TRUCKS AND WEIGHING STATIONS ALTHOUGH IT APPEARS UNSOPHISTICATED DIMAC'S SUCCESS IS EXEMPLARY FOR OTHER SMALL SERVICEPROVIDERS EXPERTS NOTE MANY OF THESE COMPANIES POSSESS PROPRIETARY TECHNOLOGY THAT THEY COULD PARLAY INTO NEW BUSINESS AREAS BUT TYPICALLY THE FIRMS FAIL TO DO SO BECAUSE THEY DON'T KNOW HOW TO MARKET SUCH TECHNOLOGY DIMAC HAS DONE A GREAT JOB OF INTEGRATING CREATIVE SERVICES INTO ITS REGULAR BUSINESS AND OFFERING SOMETHING ENTIRELY NEW SAYS DAVID KING A MEMBER OF DIMAC'S BOARD OF DIRECTORS AND A PRINCIPAL WITH MCCOWN DE LEEUW & CO THE MENLO PARK CALIF INVESTMENT BANK BECAME DIMAC'S LARGEST SHAREHOLDER LAST MONTH MANY SMALL SERVICEPROVIDERS DON'T REALIZE THAT CONSOLIDATION CAN BOTH EXPAND THEIRBUSINESS AND CREATE ECONOMIES OF SCALE DIMAC OFFICIALS SAY THEY HAVE ENLARGED THEIR TECHNOLOGY EXPERTISE AND BUSINESS AREAS BY ACQUIRING AND CONSOLIDATING FOUR CONCERNS SINCE 1991 INCLUDING GAZETTE MARKETING SYSTEMS A SAN FRANCISCO DATABASE MARKETING COMPANY AND HUB DIRECT MARKETING IN BOSTON DIRECTMAIL COMPANIES ALWAYS HAVE HELPED MARKETERS GET CLOSE TO THEIR CUSTOMERS SAYS LARRY OHRBACH OF OHRBACH ASSOCIATES A DIRECTMAIL AND ADVERTISING CONSULTING FIRM IN NEW YORK NOW HOWEVER SAVVY DIRECT MAILERS LIKE DIMAC USE NEW TECHNOLOGICAL TOOLS SO THAT CLIENTS CAN GROW EVEN CLOSER TO CUSTOMERS HE ADDS CONSIDER ONE NATIONAL MAKER OF DOG FOOD WHO PREFERS NOT TO BE IDENTIFIED THE MANUFACTURER INITIALLY HIRED DIMAC IN 1991 TO RESPOND QUICKLY TO CUSTOMER REQUESTS FOR FREE SAMPLES DIMAC SAYS IT CUT THE MANUFACTURER'S USUAL RESPONSE TIME TO OVERNIGHT FROM MORE THAN A MONTH AND IN THE PROCESS USED THOSE CUSTOMERS' NAMES TO CREATE A GIANT COMPUTERIZED LIST OF DOGFOOD BUYERS THE DIRECTMARKETING CONCERN THEN DESIGNED A COUPON TO HELP THE MANUFACTURER TRACK REPEAT CUSTOMERS A SHORT WHILE LATER DIMAC USED THE CUSTOMER LIST TO DESIGN A DIRECTRESPONSE CAMPAIGN THAT PROVED MORE COSTEFFICIENT THAN THE MANUFACTURER'S TRADITIONAL NEWSPAPER COUPONS MR MCSWEENEY RECALLS DIMAC IS FLOURISHING TOO BECAUSE IT SATISFIES MARKETERS' NEED FOR MORE TARGETED INFORMATION ABOUT THEIR CUSTOMERS A NEED THAT MANY ADVERTISING AGENCIES FAIL TO ADDRESS SAYS WILLIAM MIRBACH PRESIDENT OF MIRBACH & CO A WESTPORT CONN SUPPLIER OF DIRECTMARKETING SOFTWARE DIMAC'S SUCCESS HOWEVER MAY BE SHORTLIVED MR MIRBACH WARNS TO COMPETE WITH ADVERTISING AGENCIES IN THE LONG RUN DIRECTMAIL BUSINESSES WILL HAVE TO EXPAND THEIR DESIGN AND CREATIVE CAPABILITIES EVEN MORE HE CONTENDS AND THAT STRATEGY COULD PROVE BOTH EXPENSIVE AND CONTRARY TO THESE FIRMS' LOWTECH BUSINESS CULTURES MR MIRBACH SAYS ALSO MANY HIGHTECH NICHES NOW FILLED BY DIRECTMAIL FIRMS COULD SOON BECOME COMMODITIES THEMSELVES THE MARKETERS MAY BE ABLE TO DO THE SAME JOBS THEMSELVES WITH PCS AND INEXPENSIVE SOFTWARE MR MIRBACH EXPLAINS SOME OF DIMAC'S SERVICES PROBABLY COULD BE DONE CHEAPER BY ITS CLIENTS MR MCSWEENEY CONCEDES BUT THE COSTS OF CUSTOMIZING GENERIC DATA AND MAINTAINING THAT DATA ARE TOO EXPENSIVE FOR MOST INDIVIDUAL MARKETERS HE BELIEVES THE EXECUTIVE SAYS DIMAC SHOULD BE ABLE TO SUSTAIN LONGTERM GROWTH BY CONTINUING TO ACQUIRE AND INTEGRATE TRADITIONAL DIRECTMAIL BUSINESSES AND SPECIALIZED PROVIDERS SUCH AS PRINTERS SOFTWARE DEVELOPERS COMPUTER SERVICE BUREAUS AND DATABASE MARKETERS TO REFINE THIS BUYANDBUILD PHILOSOPHY MR MCSWEENEY LED A BUYOUT OF THE COMPANY'S PREVIOUS INVESTORS THIS FALL ASSISTED BY MCCOWN DE LEEUW HE ENGINEERED A 50 MILLION PRIVATE PLACEMENT THAT BOUGHT A 50 STAKE HELD BY GOLDER THOMA & CO A CHICAGO VENTURE CAPITAL FIRM THE STAKE ORIGINALLY PURCHASED FOR 18 MILLION IN 1986 FETCHED 30 MILLION FOR GOLDER THOMA ACCORDING TO THE VENTURE CAPITAL FIRM THE NEW FINANCING REMOVES A CLOUD OF UNCERTAINTY FROM OUR FUTURE MR MCSWEENEY SAYS HAVING A NEW CONTROLLING INVESTOR SUCH AS MCCOWN DE LEEUW WHICH MANAGES ABOUT 170 MILLION GIVES DIMAC DEEPER POCKETS AND MORE FINANCIAL FLEXIBILITY HE SAYS 9312150105 931215 CREDIT MARKETS NET US PURCHASES OF FOREIGN SECURITIES REACHED A RECORD 453 BILLION IN THE THIRD QUARTER BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK MARKET EXPERTS HAVE CALLED THE INTEREST OF AMERICAN INVESTORS IN FOREIGN STOCKS AND BONDS STRONG BUT NUMBERS RELEASED BY THE US COMMERCE DEPARTMENT YESTERDAY INDICATE IT'S MORE LIKE A FEEDING FRENZY THE GOVERNMENT REPORTED THAT IN THE THIRD QUARTER NET US PURCHASES OF FOREIGN SECURITIES WERE A RECORD 453 BILLION COMPARED WITH 241 BILLION IN THE SECOND QUARTER THE THIRDQUARTER NUMBER NEARLY EQUALS THE TOTAL NET PURCHASES FOR LAST YEAR OF ALMOST 48 BILLION IT'S PROBABLY THE LARGEST SHIFT BETWEEN QUARTERS SAID HOWARD MURAD OF THE COMMERCE DEPARTMENT WHO HELPED PREPARE THE REPORT A JUMP OF THIS DEGREE IS A NEW PHENOMENON AND A SIGN OF THE INCREASED INTERNATIONALIZATION OF THE WORLD'S STOCK AND BOND MARKETS THE US STOCK AND BOND MARKETS WERE PERCEIVED AS RELATIVELY RICH THIS YEAR WHEN COMPARED TO INTERNATIONAL STOCK AND BOND MARKETS SAID NEAL LITVACK EXECUTIVE VICE PRESIDENT OF MARKETING AT FIDELITY INVESTMENTS THE MUTUALFUND CONCERN AS A RESULT A LOT OF POCKETS OF OPPORTUNITY EMERGED ABROAD WITH THE BENCHMARK 30YEAR TREASURY BOND YIELDING 628 YESTERDAY COMPARED WITH 623 ON MONDAY US INVESTORS HAVE GONE BEYOND BEING UNSATISFIED WITH LOW YIELDS THEY'RE MOUNTING AN INVASION OF HIGHERYIELDING BOND MARKETS ACCORDING TO THE QUARTERLY ACCOUNT REPORT US RESIDENTS INCREASED THEIR NET PURCHASES OF FOREIGN BONDS BY 103 BILLION FROM THE SECOND TO THIRD QUARTER TO 209 BILLION ANOTHER RECORD ACCORDING TO THE REPORT PART OF THE REASON FOR THE BIG JUMP WAS A FLOOD OF FOREIGN ISSUES OF NEW BONDS IN THE US CALLED YANKEE BONDS WHICH WAS PROMPTED IN PART BY FALLING US LONGTERM INTEREST RATES NET PURCHASES OF FOREIGN STOCKS BY US INVESTORS WERE A RECORD 244 BILLION COMPARED WITH 135 BILLION IN THE SECOND QUARTER WITH RATES STABILIZING IN THE US THERE'S MORE POTENTIAL FOR APPRECIATION IN FOREIGN BONDS SAID MR MURAD INVESTORS FIGURE THAT RATES WILL DECLINE FASTER ABROAD HE EXPLAINED AS FAR AS THE WORLD'S STOCK MARKETS ARE CONCERNED MR MURAD POINTS TO THE SUBSTANTIAL INCREASES IN MANY FOREIGN STOCK INDEXES AS A MAJOR ATTRACTION FOR THE US INVESTOR BECAUSE OF THE WAY THE COMMERCE DEPARTMENT'S BUREAU OF ECONOMIC ANALYSIS KEEPS ITS RECORDS IT DOESN'T BREAK DOWN THE STOCK AND BOND PURCHASES BY NATIONS BUT BY REGIONS ACCORDING TO MR MURAD THE REGION TO EXPERIENCE THE BIGGEST INFLOWS FOR US INVESTMENT IN STOCKS AND BONDS IN THE THIRD QUARTER WAS WESTERN EUROPE NET PURCHASES OF STOCKS AND BONDS IN WESTERN EUROPE JUMPED FROM 118 BILLION TO 228 BILLION BUT THERE WERE SUBSTANTIAL INCREASES IN OTHER REGIONS FOR EXAMPLE NET PURCHASES BY US INVESTORS OF NEW ISSUES OF LATINAMERICAN STOCKS AND BONDS JUMPED MORE THAN 60 TO 31 BILLION FROM THE SECOND TO THE THIRD QUARTER THE COMMERCE DEPARTMENT DOESN'T HAVE RECORDS OF PURCHASES OF OUTSTANDING SECURITIES WHICH ARE MOST LIKELY SUBSTANTIALLY HIGHER MOST MARKET EXPERTS SAY THE MARKETS OF DEVELOPING NATIONS INCLUDING LATIN AMERICA ASIA EASTERN EUROPE AND EVEN AFRICA EXPERIENCED SUBSTANTIAL INCREASES IN DEMAND FROM US INVESTORS ONE SIGN OF THIS NEW DEMAND HAS BEEN A FLOOD OF ISSUES FROM COUNTRIES LIKE ARGENTINA MEXICO KOREA AND CHINA EARLIER THIS YEAR CHINA RETURNED TO THE PUBLICDEBT MARKETS FOR THE FIRST TIME SINCE 1949 TODAY A COMPANY THAT RECEIVES FINANCIAL SUPPORT FROM THE CHINESE GOVERNMENT PLANS TO SELL A PRIVATE OFFERING OF 200 MILLION OF NONCALLABLE 10YEAR SENIOR NOTES THROUGH MERRILL LYNCH INVESTORS HOPING TO CASH IN ON CHINA'S RAPID ECONOMIC EXPANSION ARE TAKING A CLOSE LOOK AT THE OFFERING BY GUANGDONG ENTERPRISES HOLDINGS LTD HONG KONGBASED GUANGDONG ENTERPRISES IS THE ECONOMICDEVELOPMENT ARM OF THE GUANGDONG PROVINCE AND HAS BUSINESS LINES IN TRADE MANUFACTURING REAL ESTATE HOTELS AND FINANCE OFFICIALS CLOSE TO THE OFFERING EXPECT THE NOTES TO YIELD BETWEEN 275 AND 30 PERCENTAGE POINTS MORE THAN THE 10YEAR TREASURY NOTE THAT'S SIGNIFICANTLY HIGHER THAN SPREADS ON A PAIR OF OFFERINGS BY CHINESE GOVERNMENT AGENCIES EARLIER THIS YEAR THOSE TWO OFFERINGS FROM THE GUANGDONG INTERNATIONAL TRUST & INVESTMENT CORP AND THE CHINA INTERNATIONAL TRUST AND INVESTMENT CO CAME AT YIELD SPREADS OVER COMPARABLE TREASURYS OF JUST 115 AND 10 PERCENTAGE POINTS RESPECTIVELY GUANGDONG ENTERPRISES IS LIKELY TO HAVE A WIDER YIELD SPREAD BECAUSE UNLIKE THE TWO GOVERNMENTAGENCY OFFERINGS BONDHOLDERS CANNOT EXPECT A GOVERNMENT BAILOUT IF THE COMPANY WERE TO DEFAULT ON EITHER INTEREST OR PRINCIPAL PAYMENTS THERE IS NO GUARANTEE THAT THE PROVINCE WILL STEP IN AND SUPPORT THE COMPANY SAID JAMES SWANSON A PORTFOLIO MANAGER AT MASSACHUSETTS FINANCIAL SERVICES IN LIGHT TRADING PRICES OF US TREASURY SECURITIES MATURING IN MORE THAN FIVE YEARS POSTED SOLID LOSSES YESTERDAY TRADERS SAID THERE WAS NO SINGLE REASON FOR THE LOSSES THE BENCHMARK 30YEAR TREASURY BOND DROPPED 3/4 POINT OR 750 FOR A BOND WITH A 1000 FACE VALUE TO 99 13/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 628 FROM 623 ON MONDAY THE 10YEAR NOTE DROPPED MORE THAN 1/4 POINT TO 99 18/32 TO YIELD 579 UP FROM 575 ON MONDAY THE BOND MARKET BEGAN THE DAY WITH A POSITIVE TONE PRICES WERE BOLSTERED EARLY ON BY EXPECTATIONS OF BUYING RELATED TO MUNICIPAL DEFEASANCE UNDER A DEFEASANCE PROGRAM A STATE OR LOCAL GOVERNMENT BUYS TREASURYS WITH THE PROCEEDS OF DEBT ISSUED TO REFUND OLDER HIGHERYIELD SECURITIES TRADERS SAID WELL OVER 1 BILLION OF SUCH DEBT WAS ISSUED YESTERDAY PROVIDING A LIFT TO INTERMEDIATE TREASURYS AND SEVERAL BILLION MORE IN DEFEASANCE ISSUANCE IS SCHEDULED FOR THE REST OF THIS WEEK HOWEVER THOSE GAINS PROVED TO BE SHORTLIVED DEFEASANCE HAS MADE A DIFFERENCE WHEN THE MARKET HAS A STRONG TONE BUT WHEN THE MARKET IS LACKING OOMPH DEFEASANCE BY ITSELF DOESN'T DO MUCH SAID JOHN FRIEL A MANAGING DIRECTOR AT DONALDSON LUFKIN & JENRETTE SECURITIES AND RIGHT NOW THE MARKET HAS A REAL LACKLUSTER TONE AFTER THE EARLY SUPPORT FOR PRICES EVAPORATED TRADERS SENT THE BOND MARKET ON A SLIDE THAT WOULD CONTINUE LARGELY UNINTERRUPTED LATE INTO THE SESSION THE PEOPLE WHO COULD HAVE BEEN ABLE TO SUPPORT THE MARKET NAMELY PORTFOLIOS REMAIN SOLIDLY ON THE SIDELINES SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS TWO TELEPHONE COMPANIES SOLD MORE THAN 800 MILLION OF BONDS YESTERDAY SOUTHERN NEW ENGLAND TELEPHONE CO PRICED A 445 MILLION TWOPART OFFERING WHILE GTE FLORIDA INC SOLD A 400 MILLION TWOPART OFFERING IN ADDITION SALOMON INC PRICED 150 MILLION OF NOTES NEW YORK TELEPHONE CO HOWEVER DECIDED LATE ON MONDAY THAT IT DID NOT LIKE THE MARKET AND IT POSTPONED ISSUING DEBT UNTIL NEXT YEAR ACCORDING TO AN OFFICIAL AT NYNEX CORP THE TELEPHONE COMPANY'S PARENT NEW YORK TELEPHONE WAS EXPECTED TO ISSUE 300 MILLION TO 600 MILLION OF DEBT THIS WEEK A NYNEX OFFICIAL CONFIRMED TRADING IN THE INVESTMENTGRADE MARKET WAS LIGHT AS PRICES FOLLOWED TREASURYS LOWER IN THE JUNKBOND MARKET TRADING WAS ALSO LIGHT WITH PRICES UNCHANGED SOUTHERN NEW ENGLAND TELEPHONE A UNIT OF SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP HAD BEEN WATCHING THE MARKET FOR THE LAST FEW WEEKS AND DECIDED IT LIKED THE LEVEL OF RATES FOR 40YEAR BONDS AND 10YEAR NOTES ACCORDING TO JACK MILLER VICE PRESIDENT AND TREASURER THE COMPANY SOLD 200 MILLION OF 10YEAR NONCALLABLE MEDIUMTERM NOTES AT 9916 TO YIELD 6239 045 PERCENTAGE POINT ABOVE TREASURYS THE COMPANY ALSO SOLD 245 MILLION OF 40YEAR NOTES AT 9930 TO YIELD 7304 THE NOTES WHICH ARE NOT CALLABLE FOR 10 YEARS WERE PRICED AT 085 PERCENTAGE POINT ABOVE TREASURYS BOTH PARTS ARE RATED DOUBLEA2 BY MOODY'S AND DOUBLEA BY STANDARD & POOR'S SUPPLY SURGED IN THE MUNICIPALBOND MARKET YESTERDAY AS MORE THAN 12 BILLION OF OFFERINGS WERE PRICED BY BORROWERS INCLUDING THE NEW YORK STATE DORMITORY AUTHORITY MEANWHILE IN THIN SECONDARY TRADING PRICES DRIFTED LOWER MARTIN COUNTY NORTH CAROLINA'S 565 BONDS DUE 2023 CLOSED 1/4 LOWER AT 100 YIELDING 562 THE DAY'S LARGEST OFFERING WAS THE MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA'S 4418 MILLION REFUNDING BONDS BROUGHT TO THE MARKET BY A CS FIRST BOSTON GROUP THE NEW YORK STATE DORMITORY AUTHORITY'S 4156 MILLION SERIES 1993A COURT FACILITIES LEASE REVENUE BONDS WERE BROUGHT TO THE MARKET BY A PAINEWEBBER GROUP FOLLOWING REPRICING AT WHICH YIELDS FOR SOME BONDS WERE LOWERED 10 TO 70 BASIS POINTS BECAUSE OF STRONG DEMANDYIELDS RANGE FROM 47 IN 1999 TO 574 IN 2022 THE INITIAL YIELD SCALE HAD BEEN 475 IN 1999 TO 575 IN 2021 THE NEW 2022 BONDS ADDED AT THE REPRICING ARE 570S PRICED TO YIELD 574 ALTHOUGH SEVERAL UNDERWRITING GROUPS HAVE HAD TO RAISE YIELDS AT REPRICINGS THIS WEEK TO DRAW BUYERS MUNI SPECIALISTS SAY INVESTOR DEMAND REMAINS STRONG FOR TAXEXEMPT SECURITIES PRICE DROPS IN CURRENT COUPON MORTGAGE SECURITIES LAGGED BEHIND THE SLIDE IN TREASURYS YESTERDAY TRADING VOLUME WAS THIN AND MOST DEALERS EXPECT DEMAND FOR MORTGAGE SECURITIES TO STRENGTHEN PRICES IN THE NEW YEAR CURRENT COUPONS ARE BACKED BY THE MOST RECENT MORTGAGE LOAN PRODUCTION PREDOMINANTLY 65 SECURITIES MORE ATTENTION IN THE STRUCTURED FINANCE MARKETS THIS SESSION WAS PAID TO THE ASSETBACKED SECTOR WHERE CITICORP'S CITIBANK NA PRICED A 798 MILLION ISSUE OF FIVEYEAR CREDITCARD CERTIFICATES PERHAPS THE LAST LARGE DEAL OF THE YEAR THE SENIOR 750 MILLION SLICE OF THE OFFERING WAS PRICED BY CITICORP SECURITIES MARKETS WITH A 55 COUPON AT 99855 TO YIELD 5533 A SPREAD OF 40 BASIS POINTS ABOVE THE TREASURY'S FIVEYEAR NOTE THE OFFERING ALSO INCLUDED A 48 MILLION SLICE RATED A2 BY MOODY'S INVESTORS SERVICE AND SINGLEA BY STANDARD & POOR'S THIS SUBORDINATED CLASS WAS PRICED BY MERRILL LYNCH WITH A 57 COUPON AT 99748 TO YIELD 5758 IN MORTGAGES GINNIE MAE 65S WERE DOWN 11/32 AT 98 17/32 FREDDIE MAC GOLD 65S WERE DOWN 10/32 AT 98 22/32 AND FANNIE MAE 65S WERE DOWN 10/32 AT 98 17/32 IN PRIMARY ACTIVITY THE FEDERAL HOME LOAN MORTGAGE CORP ANNOUNCED A 500 MILLION INCREASE TO A 500 MILLION REMIC BACKED BY 30YEAR 65S AND A NEW 600 MILLION OFFERING BACKED BY 15YEAR 65S TERENCE DONNELLY OF EMERGING MARKETS REPORT CONTRIBUTED TO THIS ARTICLE 9312150104 931215 TECHNOLOGY & HEALTH INTEL AIMS TO DOUBLE ITS CHIP PERFORMANCE SANTA CLARA CALIF INTEL CORP SAID IT EXPECTS TO DOUBLE THE PERFORMANCE OF ITS CHIPS THROUGHOUT ITS MICROPROCESSOR LINE IN THE NEXT YEAR A FASTER PACE OF INNOVATION THAN IN THE PAST PARTLY AS A RESULT OF INTEL'S HEAVY INVESTMENT IN FACTORIES AND MANUFACTURING TECHNOLOGY IN RECENT YEARS INTEL WILL SEE A DOUBLING OF PERFORMANCE AT EVERY PRICE POINT OVER THE NEXT 12 MONTHS SAID PAUL OTELLINI SENIOR VICE PRESIDENT OF INTEL'S MICROPROCESSOR GROUP IN AN INTERVIEW INTEL AND OTHER CHIP MAKERS TYPICALLY HAVE BEEN ABLE TO DOUBLE THE PERFORMANCE OF A MICROPROCESSOR KEEPING THE PRICE CONSTANT EVERY 18 TO 24 MONTHS THE FASTER PACE OF INNOVATION WILL HELP BRING DOWN PRICES ON PERSONAL COMPUTERS USING INTEL'S NEW PENTIUM MICROPROCESSOR MR OTELLINI SAID LOW COST PENTIUMBASED PCS WHICH SELL FOR ABOUT 3000 TODAY WILL PROBABLY BE AVAILABLE FOR 2000 A YEAR FROM NOW HE SAID TO ADD TO THE INFLUX OF PENTIUM CHIPS ON THE MARKET NEXT YEAR INTEL WILL RAPIDLY ADD CAPACITY INCREASING TO FIVE THE NUMBER OF FACTORIES THAT MAKE PENTIUM CHIPS UP FROM TWO FACTORIES NOW HE SAID 9312150103 931215 USAIR GROUP PLANS NEW SERVICE IN 1994 FOR SHORTER FLIGHTS CHICAGO USAIR GROUP INC PLANS TO BEGIN MARKETING A NEW SHORTFLIGHT SERVICE BY MID1994 SAID SETH E SCHOFIELD CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE PROJECT IS THE SECOND STAGE OF A BROADER PROGRAM ANNOUNCED FRIDAY AIMED AT MAKING USAIR MORE COMPETITIVE ON FLIGHTS OF LESS THAN 500 MILES WHICH MAKE UP TWOTHIRDS OF USAIR'S ROUTE SYSTEM USAIR'S LATEST APPROACH TO THE HOTLY CONTESTED SHORTFLIGHT MARKET IS INTERNALLY CALLED PROJECT HIGH GROUND MR SCHOFIELD WOULDN'T DISCUSS THE FARE STRUCTURE OF THE NEW SERVICE BUT HE DID SAY IT WILL ADD VALUE TO THE CONSUMER THE NEW SERVICE WILL PROBABLY USE USAIR AS PART OF ITS OWN NAME HE SAID BUT IT WILL BE DISTINGUISHED FROM THE MAIN AIRLINE AS A HIGHCOST CARRIER USAIR BASED IN ARLINGTON VA HAS BEEN VULNERABLE TO GROWING INCURSIONS INTO ITS MARKETS FROM LOWFARE UPSTARTS USAIR'S OPERATING COSTS MEASURED ON AN AVAILABLE SEATMILE BASIS TYPICALLY RANK AT THE TOP OF MAJOR AIRLINES MR SCHOFIELD SAID THAT STEMS IN PART FROM THE FACT THAT USAIR'S SCHEDULE IS DOMINATED BY SHORT FLIGHTS WHICH ARE MORE EXPENSIVE TO OPERATE NONETHELESS THAT COST DISADVANTAGE HAS ALLOWED CARRIERS SUCH AS SOUTHWEST AIRLINES AND CONTINENTAL AIRLINES' CALITE TO UNDERCUT USAIR IN SEVERAL MARKETS USAIR HAS BEEN FORCED TO MATCH THEIR REDUCED FARES MR SCHOFIELD SAID THE NEW USAIR SERVICE WILL BEGIN FLYING IN SEVERAL MARKETS AT MIDYEAR HE DECLINED TO IDENTIFY THEM BUT SAID THE ROUTES WOULD HAVE TO HAVE ENOUGH TRAFFIC POTENTIAL TO JUSTIFY BOOSTING THE FREQUENCY OF FLIGHTS FRIDAY USAIR OUTLINED THE OPERATIONAL PHASE OF PROJECT HIGH GROUND SAYING IT WOULD BEGIN CHANGING ITS FLIGHT SCHEDULES ON CERTAIN ROUTES OF LESS THAN 500 MILES STARTING FEB 16 THROUGH MOREEFFICIENT USE OF PERSONNEL AIRCRAFT AND GROUND FACILITIES IN THOSE MARKETS USAIR SAID IT EXPECTED TO ACHIEVE COST SAVINGS PARTLY BY CUTTING NEARLY IN HALF THE 45 MINUTES ITS PLANES NOW SPEND ON THE GROUND 9312150102 931215 MANAGING YOUR CAREER BY JOANN S LUBLIN YOUR BOSS OFFERS YOU A TERRIFIC TRANSFER TO A DISTANT CITY SWEETENING THE POT THE COMPANY ALSO VOLUNTEERS TO HELP YOUR WORKING SPOUSE FIND A NEW JOB SOUNDS LIKE A GREAT DEAL AFTER ALL EMPLOYED HUSBANDS AND WIVES NOW REPRESENT 60 OF ALL TRANSFERRED COUPLES BUT WATCH OUT SPOUSERELOCATION ASSISTANCE CAN TURN INTO A BAD CAREER DEAL ONE MAJOR COMMUNICATIONS CONCERN ENGAGED A SENIOR EXECUTIVE'S WIFE AS A CONSULTANT AFTER MOVING THE COUPLE TO LOS ANGELES FROM NEW YORK THE WOMAN AN AWARDWINNING EDITOR WAS PROMISED THE NEXT PERMANENT OPENING A JOB DIDN'T MATERIALIZE FOR TWO YEARS HOWEVER AND IN TERMS OF HER FORMER PAY AND STATUS IT TOOK HER FIVE YEARS TO GET BACK TO THE KIND OF JOB SHE HAD LEFT IN NEW YORK SAYS ADELE SCHELE A NEW YORK CAREER STRATEGIST MANY RELOCATED CAREER COUPLES ARE DISCOVERING THAT SPOUSE SUPPORT SOMETIMES IS MORE WINDOW DRESSING THAN REALITY ARGUES ARLENE JOHNSON VICE PRESIDENT OF FAMILIES & WORK INSTITUTE A NEW YORK RESEARCH GROUP A PERSON IS WELL ADVISED TO LOOK THIS GIFT HORSE IN THE MOUTH BUT TAKING CERTAIN STEPS CAN INCREASE THE CHANCES THAT YOU AND YOUR SPOUSE WILL EMERGE UNSCATHED FROM BEING UPROOTED CAREER SPECIALISTS SUGGEST AMONG THEM GET A DETAILED WRITTEN DESCRIPTION OF THE PLANNED ASSISTANCE SO YOUR HOPES AREN'T DASHED LATER MANY PEOPLE WRONGLY EQUATE SPOUSE ASSISTANCE WITH PLACEMENT SAYS MARY BELLAMY JONES AN OFFICIAL OF CAREER DEVELOPMENT SERVICES A NONPROFIT CONSULTING FIRM IN ROCHESTER NY ABOUT 54 OF FIRMS NOW HELP RELOCATED MATES FIND JOBS USUALLY INFORMALLY UP FROM A THIRD IN 1986 THE EMPLOYEE RELOCATION COUNCIL SAYS BUT PLEDGES OF AD HOC HELP CAN RAISE EXPECTATIONS UNREALISTICALLY AN INVESTMENT BANK PROMOTED A CHICAGO MANAGER TO A SENIOR POSITION IN NEW YORK AND OFFERED TO INTRODUCE HER LAWYER HUSBAND TO LOCAL LAW FIRMS HE PREFERRED TO SWITCH FIELDS HOWEVER THE BANK BALKED AT INTRODUCING SUCH AN INEXPERIENCED PERSON TO THE FINANCIALSERVICES INDUSTRY THE HELP WAS KIND OF LIP SERVICE RECALLS CHERYL HEISLER A CHICAGO CAREER COUNSELOR THE ATTORNEY SPENT THREE MONTHS JOB HUNTING ON HIS OWN BEFORE LANDING A POSITION AT ANOTHER INVESTMENT BANK FORMAL SPOUSE PROGRAMS TEND TO FOCUS MORE ON A PERSON'S SPECIFIC JOB NEEDS EXPERTS NOTE THE PROPORTION OF COMPANIES WITH SUCH PROGRAMS SUCH AS INDIVIDUALIZED CAREER COUNSELING HAS GROWN TO 29 FROM 22 IN 1990 THE RELOCATION COUNCIL REPORTS SEEK EMPLOYMENT AID FOR YOUR WIFE OR HUSBAND BEFORE YOU ACCEPT THE TRANSFER A SPOUSE TYPICALLY DOESN'T RECEIVE FORMAL JOBHUNTING SUPPORT UNTIL AFTER AN EMPLOYEE AGREES TO MOVE THAT PICTURE HAS BEGUN TO CHANGE SOME BIG CORPORATIONS SUCH AS DOW CHEMICAL NOW SPEND ADDITIONAL SUMS USUALLY ABOUT 500 PER SPOUSE FOR PREDECISION JOB ADVICE ACCOUNTANT MELANIE D'SOUZA SAYS ADVANCE INSIGHTS INTO LOCAL DEMAND FOR HER PROFESSION PERSUADED HER AND HER HUSBAND RUPERT A DOW CHEMICAL ENGINEER TO ACCEPT A TRANSFER LAST SPRING TO MIDLAND MICH FROM CLAYTON CALIF IT LOOKED LIKE IT WOULD BE EASY TO GET A JOB OUT HERE REMEMBERS THE 27YEAROLD MS D'SOUZA WHO WAS HELPED BY IMPACT GROUP A ST LOUIS WORK/FAMILY TRANSITION FIRM SHE QUICKLY FOUND AN ACCOUNTING JOB WITH A SAGINAW CARDEALERSHIP MANAGEMENT CONCERN WITHOUT THE PREDECISION COUNSELING HER HUSBAND NOTES THE CHANCES ARE WE WOULDN'T HAVE MADE THE MOVE PRESS FOR EXTRA FLEXIBILITY IN ACCOMMODATING YOUR EMPLOYED MATE AMERITECH EASES A WORKING SPOUSE'S TRANSITION BY GIVING A TRANSFERRED EMPLOYEE AS MUCH AS 1000 A MONTH SO THAT HE OR SHE CAN COMMUTE LONG DISTANCE FOR A YEAR BUT THAT INNOVATIVE BENEFIT DIDN'T MEET THE NEEDS OF SHARON JAVERY A UNIT'S HUMANRESOURCES DIRECTOR LAST MARCH AMERITECH OFFERED HER A VICE PRESIDENCY A PROMOTION THAT REQUIRED HER TO LEAVE DETROIT FOR CHICAGO HER HUSBAND A GENERAL MOTORS ENGINEER WITH 28 YEARS OF SENIORITY BALKED THEY DECIDED TO BECOME A COMMUTING COUPLE AND MS JAVERY NEGOTIATED AN EXTENDED COMMUTER ALLOWANCE AMERITECH SPENT NOTHING TO MOVE HER BELONGINGS INSTEAD MS JAVERY SAYS THE BABY BELL IS SPENDING ABOUT 1000 A MONTH FOR THREE YEARS TO COVER SOME ADDED LIVING AND TRAVEL EXPENSES AMERITECH IS DEVELOPING A SIMILAR ALTERNATE LIVING ALLOWANCE FOR OTHER TRANSFERRED PROFESSIONALS AND MANAGERS INTERESTED IN LONGDISTANCE COMMUTING SAYS NEAL KULICK CORPORATE DIRECTOR OF HUMAN RESOURCES ASK FOR RETURN RIGHTS MORE RELOCATED CAREER COUPLES ARE SEEKING AND WINNING A ROUNDTRIP TICKET IN CASE A MOVE DOESN'T SUCCEED SAYS MARILYN MOATS KENNEDY A CAREER CONSULTANT IN WILMETTE ILL SHE CITES A HOTSHOT MARKETING MANAGER WHOM A MAJOR CONSUMERPRODUCTS MAKER RECENTLY TRANSFERRED TO KANSAS CITY MO FROM CHICAGO HIS WIFE AN ATTORNEY WAS UNSURE SHE COULD FIND A JOB IN THE NEW LOCALE THE MANAGER WANTED SOME REASSURANCE THE COMPANY WOULD TAKE THIS INTO ACCOUNT MS KENNEDY SAYS HE WAS GUARANTEED A RETURN TO CHICAGO AFTER TWO YEARS A SMALL KANSAS CITY LAW FIRM HIRED HIS WIFE PRESSING TOO HARD FOR WORKINGSPOUSE ASSISTANCE COULD BACKFIRE OF COURSE AND EVEN COST YOU THE PROFFERED TRANSFER STILL SAYS CAREER DEVELOPMENT'S MS JONES WE SEE A LOT MORE EMPATHY TO THE CAREERCOUPLE SITUATION THAN WE DID 10 YEARS AGO 9312150101 931215 WHO'S NEWS TRAVELERS CHAIRMAN TO TAKE SAME POST AT INSURANCE UNIT HARTFORD CONN TRAVELERS CORP SAID CHAIRMAN EDWARD BUDD 60 YEARS OLD WILL BECOME CHAIRMAN OF THE TRAVELERS INSURANCE UNIT FOLLOWING THE TAKEOVER BY PRIMERICA CORP AS EXPECTED PRIMERICA EXECUTIVE ROBERT LIPP 55 WILL BE CHIEF EXECUTIVE OFFICER OF THE UNIT WHICH WILL BE A SUBSIDIARY OF THE MERGED COMPANY CALLED TRAVELERS INC TWO OTHER EXECUTIVES ALSO WILL TAKE JOBS AT THE TRAVELERS UNIT MARC WEILL WHO IS 37 AND SON OF PRIMERICA CHAIRMAN SANFORD WEILL WILL RUN THE SECURITIES DEPARTMENT OF THE TRAVELERS UNIT HE IS NOW CHIEF INVESTMENT OFFICER OF PRIMERICA PRIMERICA TREASURER JAY FISHMAN 41 WILL BECOME CHIEF FINANCIAL OFFICER JAMES CALVANO 57 MOST RECENTLY PRESIDENT OF NEW VALLEY CORP WESTERN UNION AND A FORMER TOP OFFICIAL WITH PRIMERICA WILL BE CHIEF ADMINISTRATIVE OFFICER TRAVELERS CHIEF FINANCIAL OFFICER RONALD FOLEY 48 WILL HEAD THE PROPERTY AND CASUALTY OPERATIONS TRAVELERS PRESIDENT RICHARD BOOTH 46 CHIEF INVESTMENT OFFICER ROBERT CRISPIN 47 AND ELLIOT GERSON 41 AND HEAD OF THE TRAVELERS HEALTHCARE BUSINESS WILL KEEP THEIR CURRENT JOBS 9312150100 931215 WHO'S NEWS COCACOLA ENTERPRISES INC COCACOLA ENTERPRISES INC ATLANTA HOWARD G BUFFETT WAS APPOINTED A DIRECTOR OF THIS BOTTLING CONCERN MR BUFFETT 38 YEARS OLD IS CORPORATE VICE PRESIDENT AND ASSISTANT TO THE CHAIRMAN OF ARCHERDANIELSMIDLAND CO HIS APPOINTMENT INCREASES THE BOARD TO 14 MEMBERS VICKI G ROMAN 40 TREASURER SINCE 1992 WAS NAMED CORPORATE VICE PRESIDENT AND BERNICE H WINTER 45 HAS ASSUMED THE POSITION OF CORPORATE VICE PRESIDENT AND CONTROLLER SHE SUCCEEDS W LEMAR CHESNEY WHO WAS NAMED CHIEF FINANCIAL OFFICER OF COCACOLA JAPAN CO LTD 9312150099 931215 BUSINESS BRIEFS MCI COMMUNICATIONS CORP ROLLED OUT A NEW SERVICE IN ITS FRIENDS & FAMILY CALLING PLAN THAT WOULD ENABLE CUSTOMERS TO GET A 20 DISCOUNT WHEN CALLING A DESIGNATED BEST FRIEND THERE ARE NO RESTRICTIONS ON WHO IS CALLED TIME OF DAY OR LENGTH OF CALL BWIP HOLDING INC LONG BEACH CALIF THE PARENT COMPANY OF BW/IP INTERNATIONAL INC PLANS TO CHANGE ITS NAME TO BW/IP INC EFFECTIVE JAN 1 THE COMPANY MAKES PUMP EQUIPMENT AUTOMOTIVE INDUSTRIES HOLDING INC AGREED TO ACQUIRE A 40 STAKE IN INTERIORES AUTOMOTRICES SUMMA SA MEXICO CITY TERMS WEREN'T DISCLOSED INTERIORES AUTOMOTRICES IS THE INTERIOR TRIM SYSTEMS DIVISION OF GRUPO INDUSTRIAL SUMMA SA PREMIER BANCORP INC ENTERED INTO A DEFINITIVE AGREEMENT TO ACQUIRE NATIONAL BANK OF COMMERCE LAKE CHARLES LA FOR STOCK VALUED AT 14 MILLION TO 165 MILLION NATIONAL BANK STOCKHOLDERS WILL RECEIVE 16 SHARES OF PREMIER COMMON STOCK FOR EACH OF NATIONAL BANK'S 519436 COMMON SHARES THAT THEY HOLD 9312150098 931215 TECHNOLOGY & HEALTH WASCANA PLANS SALE OF OIL GAS PROPERTIES TOTALING 995 MILLION REGINA SASKATCHEWAN WASCANA ENERGY INC SAID IT PLANS TO SELL OIL AND GAS PROPERTIES THAT ACCOUNT FOR ABOUT 7 OF THE COMPANY'S OIL PRODUCTION AND 12 OF ITS NATURAL GAS PRODUCTION TO NORTHERN REEF EXPLORATION LTD FOR 1319 MILLION CANADIAN DOLLARS 995 MILLION WASCANA AN OIL AND GAS COMPANY THAT RECENTLY CHANGED ITS NAME FROM SASKATCHEWAN OIL & GAS CORP IS WELLKNOWN IN THE CANADIAN OIL PATCH THE PROSPECTIVE BUYER ON THE OTHER HAND IS A TINY CALGARY ALBERTA OIL AND GAS PRODUCER THAT STANDS TO BOOST ITS PRODUCTION MORE THAN FIVEFOLD AND ITS ANNUAL CASH FLOW MORE THAN FIFTEENFOLD IF THE TRANSACTION CLOSES NORTHERN REEF'S ABILITY TO PAY FOR THE PROPERTIES WILL DEPEND ON ITS SUCCESS AT RAISING EQUITY AND DEBT CAPITAL IN A MARKET FOR OIL AND GAS ISSUES THAT HAS COLLAPSED DUE TO SHARPLY LOWER CRUDEOIL PRICES WASCANA SAID NORTHERN REEF MUST RAISE ADDITIONAL EQUITY AND DEBT FINANCING AS A CONDITION FOR CLOSING THE DEAL WASCANA SAID THE PROPERTIES IT PLANS TO SELL PRODUCE ABOUT 5800 BARRELS OF OIL EQUIVALENT A DAY ALMOST EQUALLY SPLIT BETWEEN OIL AND GAS WASCANA SAID IT EXPECTS THE PROPOSED SALE TO CLOSE NEXT MONTH A WASCANA SPOKESMAN SAID THE COMPANY CAN'T COMMENT FURTHER ON THE TRANSACTION UNTIL NORTHERN REEF ISSUES A PRELIMINARY PROSPECTUS NORTHERN REEF SAID IT EXPECTS THE ACQUIRED PROPERTIES TO GENERATE C263 MILLION OF 1994 CASH FLOW EXCLUSIVE OF ASSUMED CAPITAL EXPENDITURES OF C49 MILLION THE COMPANY ADDED THAT IT PLANS TO SPEND AT LEAST C26 MILLION ON THE PROPERTIES NEXT YEAR 9312150097 931215 INTERNATIONAL BRITAIN IRELAND PREMIERS TO MEET ON PEACE INITIATIVE LONDON THE PRIME MINISTERS OF BRITAIN AND THE REPUBLIC OF IRELAND ARE EXPECTED TO MEET HERE TODAY TO SIGN A JOINT FRAMEWORK FOR PEACE IN NORTHERN IRELAND DURING INTENSE PHONE NEGOTIATIONS BRITAIN'S JOHN MAJOR AND IRELAND'S ALBERT REYNOLDS OVERCAME THEIR MOST SERIOUS DISAGREEMENTS PROMPTING MR REYNOLDS TO AGREE TO FLY HERE THIS MORNING IN THE HOPE OF REACHING AND SIGNING A FINAL AGREEMENT IN THE PAST 10 DAYS THE TWO MEN HAVE MET TWICE AND TALKED REGULARLY ON THE PHONE TOWARD THE STATED GOAL OF BRINGING PEACE TO NORTHERN IRELAND BY CHRISTMAS YET TO BRING PEACE TO THE PROVINCE ANY AGREEMENT BETWEEN BRITAIN AND THE IRISH REPUBLIC WOULD NEED THE APPROVAL OF THE CATHOLIC IRISH REPUBLICAN ARMY AND ITS PROTESTANT TERRORIST COUNTERPARTS ALMOST CERTAINLY BOTH GROUPS WILL FIND ASPECTS OF THE AGREEMENT OBJECTIONABLE AND IT LIKELY WILL SERVE AS A TEST OF THEIR WILLINGNESS TO COMPROMISE SO FAR BOTH GOVERNMENTS HAVE REFUSED TO DISCLOSE ANY ASPECT OF THE TALKS OR THE BUDDING AGREEMENT BUT MR MAJOR HAS REPEATEDLY SAID ANY PROPOSAL WOULD NEED THE CONSENT OF A MAJORITY OF NORTHERN IRELAND'S VOTERS 60 OF WHOM ARE PROTESTANT THE DOCUMENT IS LIKELY TO OUTLINE THE CONDITIONS FOR AN EVENTUAL BRITISH PULLOUT OF NORTHERN IRELAND AS WELL AS FOR A STEPPING DOWN OF IRELAND'S CONSTITUTIONAL CLAIM TO THE PROVINCE 9312150096 931215 WHO'S NEWS CYPRUS AMAX MINERALS CO CYPRUS AMAX MINERALS CO DENVER SEVERAL FORMER OFFICERS OF CYPRUS MINERALS CO HAVE OPTED TO TAKE THE RETIREMENT PACKAGE TRIGGERED BY THE COMPANY'S PURCHASE OF AMAX INC AND SUBSEQUENT CHANGE TO CYPRUS AMAX MINERALS KEVIN LOUGHREY 42 YEARS OLD SENIOR VICE PRESIDENT AND GENERAL COUNSEL DENNIS C HAUGH 51 VICE PRESIDENT AND TREASURER AND RICHARD H HAGMAN 46 VICE PRESIDENT PUBLIC AND INVESTOR RELATIONS WILL LEAVE THE MINING COMPANY PHILIP C WOLF SENIOR VICE PRESIDENT WAS NAMED GENERAL COUNSEL SUCCEEDING MR LOUGHREY SUCCESSORS HAVEN'T BEEN NAMED FOR MR HAUGH AND MR HAGMAN THE COMPANY SAID IT'S CONSIDERING NAMING ONLY ONE PERSON TO FILL THE TWO POSTS IN ADDITION MARK A LETTES A VICE PRESIDENT AT AMAX GOLD INC WAS NAMED CHIEF FINANCIAL OFFICER TO SUCCEED MARVIN K KAISER WHO CHOSE TO LEAVE THE COMPANY 9312150095 931215 TECHNOLOGY & HEALTH US SURPASSES JAPAN AS LEADING PRODUCER OF SEMICONDUCTORS SAN JOSE CALIF THE US FOR THE FIRST TIME IN SEVEN YEARS SURPASSED JAPAN AS THE LEADER IN THE WORLD SEMICONDUCTOR MARKET US CHIP MAKERS LED BY AN INCREASINGLY DOMINANT INTEL CORP GRABBED 419 OF THE INTERNATIONAL MARKET THIS YEAR EDGING PAST THE JAPANESE WITH 414 ACCORDING TO A PRELIMINARY STUDY BY DATAQUEST A MARKETRESEARCH FIRM IN 1992 THE US HELD A 415 SHARE OF THE MARKET WHILE JAPAN WHICH HAS BEEN HIT BY AN ECONOMIC SLUMP AND INCREASED FOREIGN COMPETITION HELD A 423 SHARE INTEL INCREASED ITS LEADERSHIP POSITION THIS YEAR MORE THAN TWO PERCENTAGE POINTS TO A 96 SHARE FOLLOWED BY NEC CORP IN JAPAN AND MOTOROLA INC WITH 74 AND 72 RESPECTIVELY DATAQUEST SAID ASIAN COMPANIES OTHER THAN THE JAPANESE MADE THE GREATEST GAIN IN SHARE VAULTING TO A 74 SHARE FROM 6 LAST YEAR AS RECENTLY AS 1980 THE US CONTROLLED MORE THAN 57 OF THE CHIP MARKET WHILE THE JAPANESE HAD A 27 SHARE BUT IN 1986 THE JAPANESE PULLED AHEAD AND BY 1988 HAD GOBBLED UP 51 OF THE MARKET THIS YEAR'S TURNAROUND WAS HELPED BY JAPAN'S ECONOMIC TROUBLES THE JAPANESE CHIP MARKET IS DOMINATED BY THE JAPANESE MAKERS SO WHEN THE MARKET THERE IS SLUGGISH JAPAN'S OVERALL WORLD MARKET SHARE FALLS BUT SOME ANALYSTS SAID THEY FEEL THAT THE NUMBERS UNDERSTATE THE US LEAD AND ADDED THAT IF THE YENDOLLAR EXCHANGE RATE HAD REMAINED CONSTANT THE JAPANESE SHARE WOULD HAVE FALLEN MORE SHARPLY THE US COMEBACK WAS ALSO POWERED BY ITS TECHNOLOGICAL PROWESS WITH CONSUMER ELECTRONICS BEING INCREASINGLY DEPENDENT ON DATAPROCESSING CAPABILITY THAT THE JAPANESE LAG IN ANALYSTS SAID THE US CHIP MAKERS ARE WELLPOISED FOR THE FUTURE BOTH BECAUSE THEIR DOMESTIC MARKET IS EXPECTED TO GROW FASTER THAN THE JAPANESE MARKET AND BECAUSE OF THEIR PENETRATION IN PERSONAL COMPUTERS 9312150094 931215 HEARD ON THE STREET SOME ANALYSTS BELIEVE INDEPENDENT OIL FIRMS ARE READY TO RISE FROM THEIR RECENT DEPTHS BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON WITH CRUDEOIL PRICES BEATEN DOWN TO LESS THAN 15 A BARREL A FEW WALL STREETERS BELIEVE IT'S TIME TO MAKE A DASH FOR INDEPENDENTS THAT IS THEY THINK IT'S TIME TO BUY STOCK IN THE SOCALLED INDEPENDENT OIL COMPANIES WHICH LATELY HAVE SUFFERED SOME OF THE WORST BLACK EYES IN THE ENERGY GROUP THE INDEPENDENTS ARE THE EXPLORATION AND PRODUCTION COMPANIES THAT BRING OIL AND GAS OUT OF THE GROUND AND SELL IT THEY DON'T HAVE REFINERIES AND SERVICE STATIONS TO BUFFER THEM AGAINST LOWER CRUDE PRICES MANY ANALYSTS ARE SHARPLY BEARISH ON THE GROUP MABON SECURITIES FOR INSTANCE SAID IN A LATE NOVEMBER BULLETIN THAT IT WAS TEMPORARILY SUSPENDING ALL CURRENT PURCHASE RECOMMENDATIONS OF INDEPENDENTS BUT IF THE INDEPENDENTS ARE ALREADY FLAT ON THEIR BACKS SOME PEOPLE FIGURE THEIR NEXT MOVE IS BOUND TO BE A STEP UP THERE ARE TIMES TO ENTER INDEPENDENTS AND TIMES TO LEAVE THEM SAYS ROBIN WEST PRESIDENT OF PETROLEUM FINANCE A WASHINGTON CONSULTING FIRM THE TIME TO ENTER IS FRANKLY NOW MR WEST SAYS HE'S NOT TRYING TO PICK THE BOTTOM OF THE OILPRICE CRASH BUT HE THINKS LONGTERMORIENTED INVESTORS SHOULD BE LOOKING AT ENERGY STOCKS IF THEY HAVE A STOMACH FOR RISK ANOTHER KIND WORD FOR THE GROUP COMES FROM AN UNEXPECTED QUARTER A FELLOW WHO'S BETTER KNOWN FOR SLAMMING STOCKS THAN FOR APPLAUDING THEM HE IS CHARLES BIDERMAN EDITOR OF THE INVESTMENT NEWSLETTER MARKET TRIM TABS AND BEST KNOWN FOR HIS ADVICE ON WHICH STOCKS TO SELL SHORT OR BET AGAINST MR BIDERMAN SEES THE CURRENT DOWNTURN AS AN OPPORTUNITY YOU WANT TO BUY THESE COMPANIES ON DIPS FOR A TWO OR THREEYEAR STRATEGY IF YOU CAN AFFORD TO DO THAT HE SAYS HE POINTS TO SEVERAL INDEPENDENTS THAT HE THINKS WILL CONTINUE TO DEVELOP THEIR RESERVES AT LOW COSTS AMONG THEM ARE COMPANIES SUCH AS CABOT OIL & GAS IN HOUSTON AND VINTAGE PETROLEUM IN TULSA OKLA WHICH TEND TO DRAW LESS SCRUTINY FROM WALL STREET'S CADRE OF ANALYSTS ONE STOCK THAT INTRIGUES ANALYSTS IS TRITON ENERGY IN DALLAS IT'S 33 BELOW A PEAK REACHED IN THE SECONDQUARTER WHEN OIL STOCKS WERE HOT AND CRUDE OIL WAS ABOVE 20 BUT THE CURRENT CRUDEPRICE WEAKNESS DOESN'T MATTER TO TRITON BECAUSE IT DOESN'T HAVE ANY CURRENT CRUDE PRODUCTION SAYS SALOMON BROTHERS ANALYST THOMAS DRISCOLL WELL NONE TO SPEAK OF TRITON NOW PRODUCES A MERE 4000 BARRELS A DAY BUT OUTPUT WILL SURGE STARTING IN 1996 BECAUSE TRITON HAS ROUGHLY A 10 INTEREST IN TWO OF THE BIGGEST RECENT OIL DISCOVERIES THE CUSIANA AND CUPIAGUA FIELDS IN COLOMBIA BY THE END OF 1994 THOSE TWO FIELDS WILL BE PRODUCING 90000 BARRELS A DAY OF WHICH TRITON GETS 9000 TRITON SHARES THE FIELDS' OUTPUT WITH PARTNERS BRITISH PETROLEUM FRANCE'S TOTAL AND THE COLOMBIAN GOVERNMENT SAYS W GREG DUNLEVY A TRITON VICE PRESIDENT BASED ON CURRENT DEVELOPMENT PLANS TRITON'S SHARE FROM COLOMBIA WILL SURGE TO 50000 BARRELS A DAY BY 1998 TRITON SAYS THE COLOMBIAN FIELDS ARE PROFITABLE EVEN AT TODAY'S DEPRESSED OIL PRICES AND IT'S A SAFE BET THAT PRICES WILL BE HIGHER BY THE SECOND HALF OF THIS DECADE SAYS LEONARD J SCHUMAN DIRECTOR OF MARKETING AND DEVELOPMENT OF LONDON'S INTERNATIONAL PETROLEUM EXCHANGE SALOMON'S MR DRISCOLL FIGURES TRITON COULD BE EARNING 8 A SHARE BY 1997 FROM COLOMBIA IF SO A MODEST MULTIPLE OF 10 TIMES EARNINGS WOULD MAKE THIS AN 80 STOCK HE SAYS THE POTENTIAL IS A THREEYEAR DOUBLE OR TRIPLE WITH A NOTSOBAD DOWNSIDE RISK PERHAPS ONLY 5 A SHARE OF EARNINGS FROM COLOMBIA TRITON CLOSED YESTERDAY AT 29 3/8 OFF 1/4 IN A REPORT ENTITLED DO WE HAVE A BUYING OPPORTUNITY MICHAEL BARBIS OF NATWEST SECURITIES IMPLIES THAT WE DO IF YOU'RE A SMALL INVESTOR AND YOU'RE NOT MEASURING YOUR PERFORMANCE WEEKLY OR DAILY OR HOURLY THIS IS A GOOD TIME TO BUY HE POINTS TO APACHE IN HOUSTON NOW AT 21 5/8 OR 35 BELOW ITS PEAK FOR THE YEAR RESERVES ARE UP SEVENFOLD OVER A DECADE MAINLY THROUGH ACQUISITIONS YET DEBT IS DOWN TO 35 OF EQUITY FROM A MID1991 PEAK OF 61 APACHE IS IN A POSITION TO GO OUT AND BUY MORE RESERVES AT CUTRATE PRICES MR BARBIS FIGURES PRICES HAVE SLIPPED LATELY FOR NATURAL GAS WHICH ACCOUNTS FOR SOME 60 OF APACHE'S OUTPUT MR BARBIS SAYS TRADITIONAL INDEPENDENTS SUCH AS APACHE TEND TO TRADE AT FIVE TO SEVEN TIMES CASH FLOW APACHE NOW TRADES AT ONLY ABOUT 46 TIMES OF COURSE HE AND OTHERS SAY NATURALGAS PRICES COULD SLIP FURTHER THIS WINTER SO THE INDEPENDENTS' RIDE COULD BE BUMPY MR DRISCOLL SUGGESTS TEMPORARILY STEERING CLEAR OF OTHERWISESOLID INDEPENDENTS WHERE NATURAL GAS ACCOUNTS FOR A BIGGER PART OF OUTPUT SUCH AS ANADARKO PETROLEUM AND BURLINGTON RESOURCES ONE LONGSHOT BUY IS A POTENTIAL TURNAROUND FOREST OIL IN DENVER WHICH HAS UNDERGONE AN EXTENSIVE RESTRUCTURING AND MANAGEMENT CHANGES IN THE PAST TWO YEARS AND HAS LARGELY SWITCHED FROM WILDCATTING WELLS TO ACQUIRING RESERVES FOREST PEAKED AT 6 THIS YEAR ON NASDAQ IT'S DOWN TO 3 7/8 9312150093 931215 WHO'S NEWS EL PASO NATURAL GAS CO EL PASO NATURAL GAS CO EL PASO TEXAS WILLIAM A WISE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS NATURALGAS PIPELINE COMPANY WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN AS CHAIRMAN MR WISE 48 YEARS OLD SUCCEEDS RICHARD M BRESSLER 63 WHO WILL RETIRE DEC 31 9312150092 931215 UAL AND UNIONS NEAR AGREEMENT IN BUYOUT TALKS BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UAL CORP AND ITS UNIONS APPEAR TO HAVE MADE SIGNIFICANT PROGRESS IN THEIR BUYOUT NEGOTIATIONS WITH THE TWO SIDES CONTINUING TO WORK OUT FINANCIAL DETAILS IN ANTICIPATION OF AN IMMINENT AGREEMENT WHILE CAUTIONING THAT THEY HADN'T REACHED AN AGREEMENT COMPANY AND UNION OFFICIALS NEVERTHELESS TOOK STEPS YESTERDAY TO PREPARE THEIR RESPECTIVE SIDES TO APPROVE A DEAL ACCORDING TO INDIVIDUALS FAMILIAR WITH THE TALKS ADVISERS FOR BOTH SIDES NEGOTIATED FINANCIAL DETAILS IN NEW YORK YESTERDAY THESE PEOPLE SAID THE SPECIFICS OF YESTERDAY'S TALKS COULDN'T BE LEARNED BUT THE PARTIES HAVE BEEN DISCUSSING A TRANSACTION IN WHICH THE UNIONS WOULD ACQUIRE A MAJORITY STAKE IN UAL PAID FOR PRIMARILY WITH BILLIONS OF DOLLARS OF WAGE AND WORKRULE CONCESSIONS ONE PARTICIPANT IN THE TALKS SAID THAT WHILE MOST OF THE LABOR ISSUES HAVE BEEN RESOLVED THE TRANSACTION'S PRICE AND THE SIZE OF THE UNION'S STAKE ARE STILL UNDER DISCUSSION STILL HEARTENED BY THE PROSPECT OF STRIKING A DEAL UAL'S MACHINISTS UNION BEGAN PLANNING HOW TO DISSEMINATE INFORMATION ABOUT AN OFFER TO ITS MEMBERS FOR RATIFICATION WE CERTAINLY HAVEN'T FELT THE NEED TO DO THIS UNTIL NOW SAID A UNION SPOKESMAN SEPARATELY LEADERS OF UNITED'S FLIGHT ATTENDANTS UNION ARE SCHEDULED TO MEET HERE TOMORROW TO REVIEW THE BUYOUT TALKS AND DISCUSS HOW THEY MIGHT REJOIN THE UNION COALITION THE FLIGHT ATTENDANTS DROPPED OUT OF THE TALKS IN THE SUMMER IN A DISPUTE WITH THE COMPANY OVER THE OPENING OF A FOREIGN BASE FOR ATTENDANTS MEANWHILE SOME OF UAL'S SENIOR OFFICERS LEFT CHICAGO YESTERDAY TO CONSULT WITH THEIR NEGOTIATORS IN NEW YORK WHERE THE TALKS HAVE BEEN GOING ON UAL CHAIRMAN STEPHEN M WOLF WAS ALREADY IN NEW YORK FOR A PHILIP MORRIS COS BOARD MEETING AS HE IS A DIRECTOR THE INFLUX TO NEW YORK OF UNITED OFFICERS CONTRASTS WITH THEIR MOSTLY HANDSOFF STANCE OVER THE PAST SEVEN MONTHS OF NEGOTIATIONS WHICH THEY LEFT TO FINANCIAL ADVISERS AND NEGOTIATORS UAL'S DIRECTORS ARE SCHEDULED TO MEET TOMORROW AT A REGULAR BOARD MEETING AT COMPANY HEADQUARTERS NEAR CHICAGO THEY ARE EXPECTED TO RECEIVE AN UPDATE ON THE NEGOTIATIONS AND COULD IMMEDIATELY BEGIN DELIBERATING ON A PROPOSAL IF NECESSARY UAL DECLINED TO COMMENT ON THE PROGRESS OF THE TALKS A SPOKESMAN FOR THE UNION COALITION SAID CLEARLY THERE'S A LOT OF PROGRESS MADE BUT UNTIL YOU HAVE A DEAL YOU DON'T HAVE A DEAL IT COULDN'T BE LEARNED HOW MUCH THE LATEST NEGOTIATING SESSIONS HAVE CHANGED THE SHAPE OF THE UNIONS' INITIAL PROPOSAL A PREVIOUS ROUND OF TALKS COLLAPSED LAST MONTH AFTER THE COMPANY REJECTED AS INADEQUATE A PROPOSAL TO ACQUIRE 60 OF UAL THE UNIONS VALUED THEIR OFFER AT 55 BILLION OR 16567 A SHARE ON A PERSHARE BASIS IT CONSISTED OF ABOUT 100 IN NEW COMMON STOCK THAT WOULD BE ISSUED AFTER THE COMPANY SET UP A LOWCOST CARRIER FOR SHORTHAUL ROUTES AND THE UNIONS AGREED TO BILLIONS OF DOLLARS IN CONCESSIONS THE ROUGHLY 66 A SHARE REMAINING WOULD HAVE BEEN MADE UP OF CASH DEBT AND PREFERRED STOCK HOWEVER UAL'S INVESTMENT ADVISER CS FIRST BOSTON INC VALUED THE ENTIRE OFFER AT ONLY ABOUT 140 A SHARE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE UAL SHARES CLOSED AT 148875 DOWN 625 CENTS UAL INVITED THE UNIONS BACK TO THE BARGAINING TABLE LATE LAST MONTH AND THE TWO SIDES HAVE BEEN NEGOTIATING IN EARNEST FOR MOST OF THE PAST TWO WEEKS 9312150091 931215 WHO'S NEWS GRAND METROPOLITAN PLC GRAND METROPOLITAN PLC LONDON GERALD CORBETT WAS NAMED GROUP FINANCE DIRECTOR OF THIS FOOD AND DRINKS CONCERN WHOSE UNITS INCLUDE BURGER KING THE COMPANY SAID MR CORBETT SUCCEEDS DAVID NASH WHO HAS MOVED ON TO HEAD THE FOOD DIVISION MR CORBETT HAD BEEN FINANCE DIRECTOR AT UK BUILDING MATERIALS GROUP REDLAND PLC FOR SIX YEARS 9312150090 931215 REVIEW & OUTLOOK EDITORIAL THE WORLD WINS ONE WATCHING THE GATT AGREEMENT MOVE FITFULLY BUT INEXORABLY TO A CONCLUSION WITH CALLS EXCHANGED AMONG LEADERS OF THE LEADING INDUSTRIALIZED COUNTRIES TO BREAK THE LOGJAMS WE WERE REMINDED OF A RECENT GRAND ASSERTION THE GATTBRETTON WOODS TRADING SYSTEM IS DEAD THIS WAS THE CENTRAL THESIS OF A BOOK PUBLISHED LAST YEAR BY LESTER THUROW OF MIT'S SLOAN SCHOOL OF MANAGEMENT AND A MUCHQUOTED ECONOMIST IN HEAD TO HEAD MR THUROW ARGUED THAT ANY HARDNOSED ANALYSIS REVEALS A WORLD ENTERING AN AGE OF GLOBAL TRADING BLOCS INSTEAD OF PLAYING BY THE SAME RULES EUROPE THE US AND JAPAN WILL WAGE ECONOMIC WARFARE AND THE NATIONS THAT CAN MOST EFFECTIVELY USE GOVERNMENT TO PUT THEIR KEY INDUSTRIES ON A WAR FOOTING WILL DOMINATE THE NEXT CENTURY WITH ITS DIRIGISTE ECONOMIES MR THUROW PREDICTED THE HOUSE OF EUROPE COULD BECELY SELFCONTAINED RAPIDLY GROWING REGION THAT COULD SPRINT AWAY FROM THE REST OF THE PACK IT DOESN'T LOOK THAT WAY THIS MORNING BUT MR THUROW'S THESIS REMINDS US OF A COUPLE OF THINGS THE GATT TRIUMPH WAS NOT INEVITABLE SECOND GATT IS NOT JUST A MATTER OF PETTIFOGGING TRADE RULES IT REPRESENTS A FUNDAMENTAL DECISION ABOUT THE DIRECTION OF POLITICS IN THE 21ST CENTURY THE WORLD AS ENVISAGED BY MR THUROW AND MANY OTHER SUCH THINKERS HAS NOT COME TO PASS GATT IF RATIFIED REPRESENTS ANOTHER STAKE IN THE HEART OF THE IDEA THAT GOVERNMENTS CAN DIRECT ECONOMIES THE MAIN PURPOSE OF GATT IS TO GET GOVERNMENTS OUT OF THE WAY SO THAT COMPANIES CAN CROSS JURISDICTIONS WITH RELATIVE EASE IT SEEMS TO BE DAWNING ON PEOPLE INCLUDING SOME FORMER INTERVENTIONISTS AROUND THE CLINTON WHITE HOUSE THAT GOVERNMENT IS SIMPLY TOO SLOW AND CLUMSY TO MANAGE TRADE BECAUSE OF GATT TRADE BLOCS WILL NOT EMERGE NATIONAL BORDERS WILL NOT BECOME WALLS CORPORATIONS WILL NOT NEED SO MANY TEAMS OF LAWYERS AND CONSULTANTS IF GOVERNMENT CODDLES AN INDUSTRY IT HAS TO PROTECT IT SO UNDER GATT CODDLING WILL BE MORE DIFFICULT INSTEAD THE PACE OF ECONOMIC GLOBALIZATION WILL ACCELERATE BY OUTLAWING MANY VOLUNTARY TRADE RESTRAINTS GATT WILL HELP THE DEVELOPING COUNTRIES ESPECIALLY IN EASTERN EUROPE GAIN ACCESS TO WESTERN MARKETS GOVERNMENTS EVERYWHERE WILL HAVE TO MEASURE THE EFFECT OF WELFARE POLICIES ON GLOBAL COMPETITIVENESS SWEDEN AND GERMANY BUILT UP THEIR DEBILITATING WELFARE POLICIES OVER DECADES TODAY THEY GET DANGER SIGNALS QUICKLY IN A GLOBAL TRADE REGIME IT WILL NOT BE GOOD ENOUGH TO BE A GOOD PRODUCER ONE MUST ASPIRE TO BE THE BEST THIS WILL RAISE THE ANXIETY LEVEL IN BUSINESS BUT IT ALSO WILL ENCOURAGE VALUES SUCH AS HARD WORK FLEXIBILITY AND VIGOR CHAUVINISTS UNINTERESTED IN FARAWAY PLACES ARE IN TROUBLE TO LOOK AT THE DETAILS OF THE GATT AGREEMENT IS TO FIND NUMEROUS FLAWS ALL BEING DESCRIBED THIS MORNING BUT ON BALANCE THE URUGUAY ROUND WILL BE A GREAT ACHIEVEMENT AND IF RATIFIED WORTH ALL THE TOIL AND TROUBLE TO REACH THIS POINT 9312150089 931215 WHO'S NEWS STAR BANC CORP STAR BANC CORP CINCINNATI CHAIRMAN OLIVER W WADDELL 63 YEARS OLD SET HIS RETIREMENT FOR DEC 31 SAYING HE HAS UTMOST CONFIDENCE IN STAR BANC'S NEW MANAGEMENT TEAM AS EXPECTED MR WADDELL WILL BE SUCCEEDED BY JERRY A GRUNDHOFER 48 WHO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE BANKING CONCERN IN MAY IN MAY MR WADDELL WARNED THAT HE WOULD RETIRE WELL BEFORE HIS MANDATORY RETIREMENT AGE OF 65 FOR PERSONAL REASONS HOWEVER HE WILL RETAIN HIS SEAT ON THE BOARD MR GRUNDHOFER WHO'S KNOWN FOR HIS COSTCUTTING AT SECURITY PACIFIC CORP HE WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THAT COMPANY UNTIL IT WAS ACQUIRED BY BANKAMERICA CORP LAST YEAR AND THEN BECAME VICE CHAIRMAN OF BANKAMERICA IS EXPECTED TO ENLARGE STAR BANC INSTEAD OF SELLING IT STAR'S CHIEF FINANCIAL OFFICER DAVID MOFFETT SAID THROUGH A SPOKESMAN STAR BANC SPENT MUCH OF LAST YEAR FENDING OFF AN ACQUISITION BID FROM CROSSTOWN RIVAL FIFTH THIRD BANCORP 9312150088 931215 SAVINGS BOND SALES DECLINE WASHINGTON THE TREASURY SOLD 787 MILLION OF SERIES EE SAVINGS BONDS IN NOVEMBER DOWN 65 FROM A YEAR EARLIER THE VALUE OF SERIES EE SAVINGS BONDS HELD BY AMERICANS AT THE END OF NOVEMBER TOTALED 15987 BILLION UP 102 FROM 14503 BILLION IN NOVEMBER 1992 SAVINGS BONDS HELD FIVE YEARS OR LONGER CURRENTLY YIELD 4 1/4 9312150087 931215 TECHNOLOGY & HEALTH AIDS VACCINES POSE POSSIBLE RISK RESEARCH SUGGESTS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO RESEARCHERS AT THE UNIVERSITY OF CALIFORNIA RAISED NEW CONCERNS THAT VACCINES DESIGNED TO PREVENT THE SPREAD OF AIDS MIGHT END UP FURTHERING INFECTION BY MUTANT VIRUSES JAY A LEVY PROFESSOR OF MEDICINE SAID THAT THE ANTIBODIES CREATED BY MOST OF THE DOZEN AIDS VACCINES NOW UNDER DEVELOPMENT MAY INACTIVATE SOME STRAINS BUT ENHANCE THE INFECTIOUS POWER OF OTHER STRAINS THE REPORT BY DR LEVY HIS COLLEAGUE SRISAKUL KLIKS AND THEIR COWORKERS APPEARS IN THE CURRENT ISSUE OF THE PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES OUR STUDIES SHOWED DIFFERENT RESPONSES OF GENETICALLY DISTINCT STRAINS OF HIV TO A SINGLE SPECIES OF ANTIBODY DR KLIKS SAID THE RESPONSES SUGGEST THE POTENTIAL FOR A VACCINE THAT INDUCES THE PRODUCTION OF ANTIBODIES THAT NEUTRALIZE ONE STRAIN TO MAKE IT EASIER FOR OTHER STRAINS TO CAUSE INFECTION THE TEAM REASONED THAT AN ANTIBODY CAPABLE OF NEUTRALIZING ONE STRAIN MAY ATTACH MORE WEAKLY TO A SLIGHTLY MUTATED STRAIN THE WEAKLYATTACHED ANTIBODY COULD CARRY THE VIRUS CLOSER TO HUMAN IMMUNE CELLS AND ACTUALLY FACILITATE THE PROCESS OF INFECTION IN A PHENOMENON KNOWN AS ENHANCEMENT THE TEAM CONCENTRATED ON A REGION OF HIV'S OUTER COAT KNOWN AS THE V3 LOOP WHICH HAS BEEN THOUGHT TO ELICIT THE STRONGEST IMMUNE RESPONSES AND THUS HAS BEEN A FOCUS OF MANY VACCINE MAKERS FURTHER BY MANIPULATING JUST A FEW AMINO ACIDS BUILDING BLOCKS WITHIN THE HIV GENE THE TEAM FOUND IT COULD REVERT FROM A STRAIN WHOSE INFECTIOUS POWERS WERE ENHANCED TO ONE THAT WAS NEUTRALIZED AND BACK AGAIN ENHANCEMENT IS A DAUNTING PROBLEM AND IS SOMETHING DEVELOPERS OF VACCINES SHOULD GIVE CLOSE ATTENTION DR LEVY SAID 9312150086 931215 TEXAS JOURNAL HEARD IN TEXAS INVESTORS SEEKING BENEFITS OF NAFTA NEED GO NO FARTHER THAN TEXAS BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL SAN ANTONIO LOOKING FOR A WAY TO PLAY THE NORTH AMERICAN FREE TRADE AGREEMENT YOU MIGHT WANT TO DIRECT YOUR SEARCH NORTH OF THE RIO GRANDE AT LEAST ONE INVESTMENT PLAN HOPING TO TAKE ADVANTAGE OF THE PACT THAT ELIMINATES TARIFFS AND REDUCES TRADE BARRIERS BETWEEN THE US MEXICO AND CANADA IS TARGETING TEXAS STOCKS THE BEST BET TO MAKE RIGHT NOW IS ON AN IMPROVED ECONOMY IN TEXAS BECAUSE OF NAFTA SAYS JEANIE WYATT WHO HEADS THE TRUST DEPARTMENT AT CULLEN/FROST BANKERS' FLAGSHIP FROST NATIONAL BANK MS WYATT AND THE DEPARTMENT'S 15 PORTFOLIO MANAGERS HAVE IDENTIFIED REGIONAL INVESTING IN TEXAS AS ONE OF THE MARKET STRATEGIES FROST'S TRUST ACCOUNTS WILL PURSUE IN 1994 THE RATIONALE NOT ALL BUSINESSES SEEKING TO BENEFIT FROM NAFTA WANT TO LOCATE IN MEXICO INSTEAD MS WYATT ARGUES MANY BUSINESSES WILL RELOCATE TO TEXAS TO TAKE ADVANTAGE OF THE PACT MS WYATT 40 YEARS OLD HAS OVERSEEN FROST'S TRUST DEPARTMENT WITH 9 BILLION IN ASSETS FOR ONLY THREE MONTHS HOWEVER SHE HAS 20 YEARS OF TRUST EXPERIENCE AND SINCE 1981 HAS MANAGED FROST'S COMMON STOCK FUND WHICH IS OVERSEEN BY THE TRUST DEPARTMENT AND INCLUDES AMONG ITS CLIENTS THE BENEFITS PROGRAM FOR SAN ANTONIO'S FIRE AND POLICE EMPLOYEES AS WELL AS WEALTHY INDIVIDUALS IN THE US AND MEXICO THE GOAL OF THE FUND IS TO OUTPERFORM THE STANDARD & POOR'S 500 STOCK INDEX BUT WITH LESS VOLATILITY FOR THE 10 YEARS ENDED SEPT 30 FROST'S COMMON STOCK FUND RETURNED MORE THAN 15 ANNUALLY COMPARED WITH THE 1467 AVERAGE ANNUAL RETURN OF THE S&P 500 AND THE FUND WAS ABOUT 10 LESS VOLATILE FOR THE 10 YEARS ENDED DEC 31 1992 CDA INVESTMENT TECHNOLOGIES LISTS THE FUND AS ONE OF THE TOP US PERFORMERS AMONG NEARLY 1500 PORTFOLIOS MANAGED BY BANKS INSURANCE COMPANIES INVESTMENT ADVISERS AND MUTUALFUND FIRMS SO WHICH STOCKS FIT THE TEXAS INVESTMENT THEME RAILTEX FOR ONE MS WYATT SAYS THE SAN ANTONIO OPERATOR OF 23 SHORTLINE RAILROADS IN THE US CANADA AND MEXICO WHICH RECENTLY WENT PUBLIC AT 1650 A SHARE SEEMS TAILORMADE FOR NAFTA AND WILL BENEFIT FROM MEXICO'S NEED TO IMPROVE ITS INFRASTRUCTURE WITH A FLOAT OF ONLY 22 MILLION SHARES THOUGH MS WYATT NOTES THAT THE COMPANY IS TOO SMALL TO INCLUDE IN FROST'S TRUST FUNDS HOWEVER SHE SAYS IT'S ONE I'VE RECENTLY ADDED TO MY PERSONAL PORTFOLIO RAILTEX TRADES AT MORE THAN 40 TIMES ITS PREVIOUS 12MONTH EARNINGS IN AN INDUSTRY THAT TYPICALLY TRADES AT ABOUT HALF THAT LEVEL BUT MS WYATT ARGUES YOU CAN'T VALUE RAILTEX LIKE A TRADITIONAL RAILROAD IT DESERVES A PREMIUM THAT'S BECAUSE RAILTEX IS GEOGRAPHICALLY DIVERSE SO THAT AN ECONOMIC SLOWDOWN IN ONE REGION CAN BE OFFSET WITH OPERATIONS IN OTHER AREAS MS WYATT ALSO SEES POTENTIAL IN TEXAS BANKS INCLUDING HER EMPLOYER CULLEN/FROST BANKERS BANKS ARE GOING TO BE THE LEADING INDICATORS OF GROWTH IN THE REGION SHE ASSERTS LONGER TERM MS WYATT LIKES SOUTHWEST AIRLINES AND SOUTHWESTERN BELL HER TWO FAVORITE STOCKS ON AN INSTITUTIONAL LEVEL NAFTA PLAYS RIGHT INTO BOTH OF THEIR TERRITORIES SHE SAYS FOR SOUTHWEST AIR TEXAS' ROLE AS A STAGING GROUND FOR US TRADE WITH MEXICO IS CERTAIN TO INCREASE AIR TRAVEL THROUGH THE STATE AND THE AIRLINE WITH ITS NOBODY DOES TEXAS BETTER CAMPAIGN HAS POSITIONED ITSELF AS THE COMPANY PLANE FOR TEXAS BUSINESS AS FOR TELEPHONE GIANT SOUTHWESTERN BELL IT'S A SIMPLE CASE OF MORE PEOPLE AND BUSINESSES MOVING INTO THE STATE ALL NEEDING NEW PHONE SERVICE SHE SAYS ALSO SOUTHWESTERN BELL WHICH RECENTLY RELOCATED ITS HEADQUARTERS TO SAN ANTONIO FROM ST LOUIS OWNS A 10 STAKE IN TELEFONOS DE MEXICO AND IS PART OWNER OF TELCEL TELMEX'S CELLULAR PHONE SUBSIDIARY TELMEX CURRENTLY HAS IN MEXICO ABOUT HALF THE NUMBER OF PHONE LINES THAT SOUTHWESTERN BELL HAS IN THE FIVE STATES IT SERVES BUT MEXICO HAS TRIPLE THE POPULATION OF BELL'S FIVESTATE REGION IN A DECADE THE CONSENSUS HOLDS TELMEX PROBABLY WILL BE LARGER THAN SOUTHWESTERN BELL AND WILL CONTRIBUTE A SIGNIFICANT AMOUNT TO BELL'S BOTTOM LINE ALL OF THIS ISN'T TO IMPLY THOUGH THAT INVESTORS SHOULD SIDESTEP INVESTMENT IN MEXICO ON THE CONTRARY MS WYATT INSISTS THAT INVESTORS NEED TO BEGIN A DISCIPLINED PROGRAM OF PUTTING SOME OF THEIR INVESTMENT DOLLARS INTO MEXICO PARTICULARLY IN THE EVENT OF DIPS IN THE BOLSA MEXICO'S STOCK EXCHANGE IN TERMS OF DEMOGRAPHICS AND INFRASTRUCTURE MEXICO IS WHERE THE US WAS IN THE 1950S HER FAVORITE MEXICAN PLAY CURRENTLY HOWEVER ISN'T A STOCK IT'S MEXICAN TREASURY BILLS KNOWN AS CETES SHE'S PARTIAL TO THE 90DAY AND ONEYEAR CETES RECENTLY YIELDING 1275 AND 1170 RESPECTIVELY SHE REASONS THAT MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI WILL BE SUCCESSFUL IN PULLING INFLATION DOWN TO 5 FROM ITS CURRENT LEVEL OF ABOUT 8 IF THAT HAPPENS THE VALUE OF THOSE CETES IS SURE TO ESCALATE SHE SAYS TWO MEXICAN STOCKS SHE'D BUY ON WEAKNESS ARE GRUPO CARSO WHICH HAS INTERESTS IN TELECOMMUNICATIONS AUTO PARTS RETAILING FOOD AND BEVERAGES TOBACCO AND CONSTRUCTION AND GRUPO INDUSTRIAL MASECA MEXICO'S GIANT CORNFLOUR MILLER A MERRILL LYNCH ANALYST HELPED PULL CONTINENTAL AIRLINES CLASS B SHARES OUT OF A TAILSPIN LATE LAST WEEK WHEN SHE INITIATED COVERAGE OF THE HOUSTON CARRIER WITH AN INTERMEDIATE AND LONGTERM BUY RATING AMONG OTHER STRENGTHS THE ANALYST NOTED THAT THE AIRLINE'S BUSINESSFIRST PROGRAM OF OFFERING FIRSTCLASS SEATS AT BUSINESSCLASS PRICES HAS BEEN SUCCESSFUL ON ATLANTIC ROUTES AND HAS JUST BEEN INTRODUCED ON DOMESTIC TRANSCONTINENTAL FLIGHTS ADDITIONALLY REVENUE FROM CONTINENTAL'S LITE OFFERINGS LOW FARES OVER SHORT ROUTES IS RUNNING AHEAD OF SCHEDULE CONTINENTAL B SHARES WHICH TRADED AT MORE THAN 27 TIMES THEIR AVERAGE DAILY VOLUME HAD SUNK TO AS LOW AS 20375 LAST WEEK THE ANALYST'S REPORT HELPED PULL THE SHARES UP TO 21125 OFF 3375 FOR THE WEEK DISCOUNT RETAILER TUESDAY MORNING'S STOCK LOST NEARLY 27 LAST WEEK AS THE COMPANY REPORTED SALES OF 481 MILLION FOR THE FISCAL FOURTH QUARTER OFF 6 FROM A YEAR EARLIER THE DALLAS RETAILER'S SALES AT STORES OPEN AT LEAST A YEAR TUMBLED 18 FOR THE QUARTER ENDED DEC 4 US LONG DISTANCE DROPPED NEARLY 4 A SHARE OR MORE THAN 22 TO CLOSE AT 1350 THE SAN ANTONIO TELECOMMUNICATIONS COMPANY SAID FRIDAY THAT THE SECURITIES AND EXCHANGE COMMISSION IS CONDUCTING AN INFORMAL INQUIRY WHICH PROMPTED IT TO DELAY A 16MILLIONSHARE SECONDARY PUBLIC OFFERING THE SEC HASN'T DETAILED THE NATURE OF THE INQUIRY BABBAGES SHED 20 IN RESPONSE TO SLUGGISH SALES IN TALKS WITH ANALYSTS THE DALLAS CONSUMERSOFTWARE RETAILER SAID ITS SALES HADN'T IMPROVED AFTER A DISAPPOINTING THANKSGIVING WEEKEND 9312150085 931215 IS CATASTROPHE PIT' LINED WITH SILVER BY JEFFREY TAYLOR AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL DAN BROPHY SPENDS MOST OF HIS TIME TRADING CORN AND SOYBEANS ON THE FLOOR OF THE CHICAGO BOARD OF TRADE BUT HE OFTEN MAKES HIS WAY TO THE EXCHANGE'S CATASTROPHE PIT WHERE HE DEALS IN HURRICANES TORNADOES AND EARTHQUAKES THE MOST PROFITABLE TRADES I HAD WERE LAST SUMMER DURING THE HURRICANE SEASON MR BROPHY SAYS WELCOME TO THE BRAVE NEW END OF THE WORLD DERIVATIVES MARKET THE BRAINCHILD OF RICHARD SANDOR THE MAN WHO CREATED THE CBOT'S HUGELY POPULAR TREASURYBOND FUTURES CONTRACTS THESE FUTURES AND OPTIONS CONTRACTS ARE DESIGNED TO HELP INSURANCE COMPANIES HEDGE AGAINST POTENTIAL CALAMITIES THAT WOULD CAUSE POLICYHOLDERS' CLAIMS TO SOAR SO FAR BIG INSURERS SUCH AS ALLSTATE CORP AND STATE FARM MUTUAL AUTOMOBILE INSURANCE CO HAVE BEEN RELUCTANT TO EMBRACE THE CONTRACTS WHICH THE CBOT HAS OFFERED FOR ONLY ABOUT A YEAR TRADING IS SO SLOW THAT ONLY THREE CBOT TRADERS WORK IN THE CATASTROPHE PIT FULL TIME BUT THAT HASN'T DAUNTED THE OPTIMISTS MR SANDOR POINTS OUT THAT THESE ESOTERIC INSTRUMENTS HAVE ALREADY GENERATED MORE VOLUME THAN INTERESTRATE DERIVATIVES DID IN THEIR FIRST YEAR IT'S IMPORTANT TO LOOK AT THE HISTORIC PRECEDENTS SAYS MR SANDOR A FORMER FINANCE PROFESSOR WHO IS NOW CHIEF EXECUTIVE OFFICER OF CENTRE FINANCIAL PRODUCTS LTD A NEW YORKBASED RISKMANAGEMENT FIRM CATASTROPHE DERIVATIVES ARE DOING WELL RELATIVE TO OTHER CONTRACTS THAT WERE PATH BREAKERS SO HOW DO YOU PUT A PRICE ON CALAMITY ANYWAY IN THE CASE OF ENDOFTHEWORLD CONTRACTS YOU START BY FIGURING THE VALUE OF CLAIMS THAT PROPERTYANDCASUALTY INSURERS PAY OUT IN A GIVEN FINANCIAL QUARTER AND DIVIDE THAT BY THE VALUE OF PREMIUMS THEY TAKE IN THIS RATIO CAN BE CALCULATED BASED ON INFORMATION THAT INSURERS VOLUNTARILY REPORT TO THE CHICAGO EXCHANGE UNLIKE CONVENTIONAL DERIVATIVES WHOSE VALUES ARE BASED ON EXPECTATIONS ABOUT THE FUTURE PERFORMANCE OF INTEREST RATES OR CURRENCYEXCHANGE RATES PRICES OF CATASTROPHE FUTURES AND OPTIONS ARE PEGGED TO OR DERIVED FROM EXPECTED VALUES OF THE CLAIMSTOPREMIUMS RATIO THE IDEA IS THAT IF DISASTER DID STRIKE IN A GIVEN QUARTER CLAIMS WOULD SOAR WHILE PREMIUMS WOULD REMAIN RELATIVELY STEADY THUS CAUSING THE RATIO TO JUMP IF ON THE OTHER HAND DISASTER WERE AVERTED CLAIMS AND THE RATIO WOULD STAY STEADY OR FALL SUCH DERIVATIVES ALLOW HEDGERS AND SPECULATORS TO PLACE ODDS ON WHETHER THEY THINK A NATURAL DISASTER WILL STRIKE DURING ONE OF SEVERAL COMING QUARTERS CATASTROPHE OPTIONS ALLOW BUYERS TO BET ON WHAT WILL HAPPEN TO THE RATIO AND AT THE SAME TIME CAN LIMIT POTENTIAL LOSSES TO THE UPFRONT PREMIUM OR COST OF THE OPTION CATASTROPHE FUTURES ON THE OTHER HAND COMMIT BUYERS AND SELLERS TO POTENTIALLY HUGE PROFITS OR LOSSES BY SELLING CATASTROPHE OPTIONS MR BROPHY WAS WAGERING THAT IN THE 1993 SEASON AT LEAST A HURRICANE WOULDN'T DEVASTATE THE EASTERN SEABOARD OF THE US I SOLD A FEW CATASTROPHE OPTIONS AND KEPT WATCHING THE WEATHER HE SAYS IF HE HAD BEEN WRONG HE WOULD HAVE BEEN OBLIGED TO MAKE A BIG CASH PAYMENT TO THE INSURANCE CONCERN THAT BOUGHT THE OPTIONS BOTTOM LINE IF HURRICANE ANDREW COMES ALONG THEY'RE GOING TO WIN AND I'M GOING TO LOSE HE SAYS AS THE WEEKS PASSED AND MR BROPHY BECAME EVEN MORE CONFIDENT THAT A HURRICANE SIMPLY WASN'T ON THE HORIZON HE SOLD MORE DERIVATIVES IT WORKED OUT WELL HE SAYS THANKS TO CONTINUED QUIET ON THE WEATHER FRONT TRADING IN ENDOFTHEWORLD CONTRACTS IS TINY COMPARED WITH TRILLIONDOLLAR DAILY TURNOVER IN INTERESTRATE CONTRACTS ALTHOUGH DEMAND FOR SUCH DERIVATIVES CONTINUES TO GROW DURING THE PAST THREE MONTHS THE PACE OF CATASTROPHEOPTIONS TRADING HAS GROWN QUICKLY TO 176 CONTRACTS A DAY IN NOVEMBER FROM 10 A DAY IN SEPTEMBER AT THE SAME TIME FUTURES DAILY VOLUME HAS DROPPED TO NONE IN NOVEMBER FROM 20 A DAY IN SEPTEMBER MR BROPHY SAYS OPTIONS VOLUME IS HIGHER THAN FUTURES VOLUME BECAUSE OPTIONS ARE A MORE FLEXIBLE WAY TO ANTICIPATE HOW PREMIUMS AND CLAIMS ARE LIKELY TO CHANGE THE FIRST REAL INTEREST IN TRADING CATASTROPHE CONTRACTS CAME DURING THE THIRD QUARTER OF THIS YEAR HIGH HURRICANE SEASON WHEN HURRICANE EMILY LUMBERED CLOSE TO THE CAROLINA COAST BEFORE VEERING HARMLESSLY OUT TO SEA SO FAR MOST BIG INSURERS REMAIN COOL TOWARD EXCHANGELISTED CATASTROPHE CONTRACTS ALLSTATE WHICH LOST 25 BILLION ON HURRICANE ANDREW LAST YEAR AND IS EAGER TO REDUCE ITS EXPOSURE TO SUCH HAZARDS IS NEVERTHELESS STICKING WITH TRADITIONAL REINSURANCE WHERE INSURANCE COMPANIES SELL CHUNKS OF THEIR RISK TO OTHER INSURERS STATE FARM THE COUNTRY'S LARGEST HOMEINSURANCE COMPANY ALSO EXPRESSES LITTLE INTEREST WE BELIEVE WE HAVE THE FINANCIAL RESOURCES TO MANAGE OUR BUSINESS WITHOUT CATASTROPHE FUTURES A STATE FARM SPOKESMAN SAYS EXECUTIVES OF SOME REINSURANCE COMPANIES ARE EQUALLY SKEPTICAL THEY'RE PUSHING VERY HARD TO PROVE IT'S A GOOD PRODUCT WHICH SAYS TO ME IT PROBABLY ISN'T SAID WILLIAM WARREN CHIEF EXECUTIVE OFFICER OF NATIONAL REINSURANCE CORP OF STAMFORD CONN TO BE SURE EXPLAINING THESE INSTRUMENTS EVEN TO SEASONED INSURANCEINDUSTRY PROFESSIONALS ISN'T EASY LAST MONTH FOR EXAMPLE MORTON LANE PRESIDENT OF THE BROKERAGE FIRM LINDWALDOCK FUTURES INC AND HEAD OF THE CBOT TASK FORCE ON CATASTROPHE FUTURES ATTENDED A SEMINAR ON CATASTROPHE DERIVATIVES AT THE REINSURANCE SOCIETY OF BERMUDA THERE HE ENCOUNTERED A ROOM FULL OF PEOPLE WHO HAD NEVER BOUGHT OR SOLD A FUTURES CONTRACT IN THEIR LIVES THE QUESTIONS THEY ASKED WERE VERY RUDIMENTARY HE SAYS ANOTHER HINDRANCE FOR CATASTROPHE DERIVATIVES IS REGULATORY BARRIERS SO FAR THREE STATES CALIFORNIA NEW YORK AND ILLINOIS ALLOW INSURANCE COMPANIES TO USE THE CONTRACTS ONLY ONE ILLINOIS HAS SET CLEAR REGULATORY GUIDELINES ON THEIR USE BUT MR BROPHY THE CBOT TRADER SAYS MORE INSURERS AND STATE REGULATORS WILL BEGIN TO EMBRACE THE CONTRACTS WHEN THEY REALIZE THAT USING THEM IS CHEAPER THAN BUYING REINSURANCE I THINK THIS THING IS GOING TO REVOLUTIONIZE THE INSURANCE BUSINESS HE SAYS IT'S SIMILAR TO THE SECURITIZATION OF MORTGAGE LOANS THAT OCCURRED IN THE 1970S MEANWHILE DERIVATIVES EXPERTS SAY NEW TYPES OF CATASTROPHE DERIVATIVES ARE ON THE DRAWING BOARD THAT COULD LAUNCH THIS FLEDGLING MARKET INTO ORBIT IN PARTICULAR THERE ARE PLANS AFOOT TO EXPAND BEYOND NATURAL DISASTER AND ALLOW TRADERS TO BET ON PLAGUES EPIDEMICS AND TERMINAL ILLNESS INSURANCE AGAINST NATURAL DISASTERS IS A PUNY MARKET RELATIVE TO THE 900 BILLIONAYEAR MARKET IN HEALTH INSURANCE SAYS JAMES HAYES A CONSULTANT IN PLACITAS NM WHO USED TO WORK FOR THE CBOT HEALTHCARERELATED DERIVATIVES COULD HEDGE INSURERS FROM AN UNEXPECTED RUSH OF CLAIMS AND WOULD OFFER CHEAPER PROTECTION THAN REINSURANCE HE SAYS 9312150084 931215 US SCHOOLS LEAD WORLD IN COMPUTERS BUT OLD ONES WASHINGTON THE US HAS MORE COMPUTERS IN ITS CLASSROOMS THAN OTHER COUNTRIES BUT ITS MACHINES ARE OLDER AND ITS TEACHERS AREN'T AS COMPUTERLITERATE ACCORDING TO A STUDY IN 1992 US SCHOOLS HAD ONE COMPUTER FOR EVERY 13 STUDENTSMORE THAN AUSTRIA GERMANY JAPAN AND THE NETHERLANDS WHERE THE STUDENTTOCOMPUTER RATIO RANGED FROM 19TO1 TO 28TO1 ACCORDING TO THE STUDY BY THE INTERNATIONAL ASSOCIATION FOR THE EVALUATION OF EDUCATIONAL ACHIEVEMENT BUT HALF THE MACHINES IN US SCHOOLS ARE OUTDATED AND NO LONGER USED IN THE WORKPLACE RONALD ANDERSON DIRECTOR OF THE US PART OF THE STUDY SAID THAT WHILE THESE COMPUTERS ARE ADEQUATE FOR ROUTINE GAMES AND DRILLS LITTLE EDUCATIONAL SOFTWARE IS STILL BEING DEVELOPED MEANWHILE LESS THAN HALF OF THE AMERICAN TEACHERS SURVEYED SAID INTRODUCTORY COMPUTER CLASSES WERE AVAILABLE TO THEM COMPARED WITH TWOTHIRDS TO 95 OF TEACHERS IN OTHER COUNTRIES AUSTRIAN STUDENTS WERE RATED THE HIGHEST ON COMPUTER KNOWLEDGE WITH AMERICAN GERMAN AND DUTCH STUDENTS IN THE MIDDLE JAPANESE STUDENTS PERFORMED RELATIVELY POORLY BUT THE COUNTRY ONLY RECENTLY INTRODUCED COMPUTERS INTO ITS SCHOOLS 9312150083 931215 BUSINESS BRIEF NEOPROBE CORP MORE LOSSES ARE PROJECTED RESEARCHPROJECT COSTS CITED NEOPROBE CORP EXPECTS A LOSS OF 1750000 OR 24 CENTS A SHARE IN THE FOURTH QUARTER BECAUSE OF CONTINUING RESEARCH AND DEVELOPMENT PROJECTS DAVID BUPP PRESIDENT SAID THE COMPANY REPORTED A THIRDQUARTER LOSS OF 21 MILLION OR 26 CENTS A SHARE NEOPROBE OF COLUMBUS OHIO WILL HAVE A LOSS OF ABOUT 65 MILLION OR 85 CENTS A SHARE IN 1993 MR BUPP SAID IN AN INTERVIEW THE HEALTHCARE CONCERN EXPECTS CONTINUED LOSSES FOR 1994 AND 1995 EQUAL TO THIS YEAR'S MR BUPP SAID 1996 WILL BE THE FIRST BREAKEVEN YEAR FOR NEOPROBE NET LOSSES SUSTAINED IN 1992 TOTALED 26 MILLION OR 41 CENTS A SHARE THE COMPANY IS TALKING TO SEVERAL UNIDENTIFIED PARTIES ABOUT A JOINT VENTURE OR MARKETING ALLIANCE MR BUPP SAID NEOPROBE SHOULD COMPLETE SUCH AN ALLIANCE DURING THE FIRST HALF OF 1994 HE ADDED 9312150082 931215 12 DAYS OF CHRISTMAS AT LEAST 1000 CHRISTMAS COOKS WILL SERVE 60SECOND PORK CHOPS BY PAMELA SEBASTIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN CREATIVE TECHNOLOGIES CORP A BROOKLYN MAKER OF SMALL APPLIANCES GOT AN OUTOFTHEBLUE CALL FOR 1000 60SECOND GRILL EXPRESSES TO BE GIVEN AS CHRISTMAS PRESENTS PRESIDENT RICHARD HELFMAN'S FIRST THOUGHT WAS HOAX HIS SECOND THOUGHT ENDORSEMENT THE CALLER JAMES DAVISON PRESIDENT OF DAVISON TRANSPORT INC IN RUSTON LA SAID HIS WIFE DIANNE HAD JUST BOUGHT ONE OF THE COMPACT INDOOR ELECTRIC GRILLS SHE LOVED IT SO MUCH THAT THE COUPLE WANTED TO GIVE ONE TO EACH OF THEIR EMPLOYEES TO ALLAY HIS INITIAL SUSPICIONS MR HELFMAN SAYS HE REPLIED OK WHY DON'T YOU PREPAY HE EXPLAINS THERE'S NO BETTER WAY TO SEE IF SOMEBODY IS PULLING YOUR LEG THAN TO SEE CASH ON THE TABLE THE CASH ARRIVED THE NEXT DAY AND SOON AFTER THE LETTER FROM CREATIVE TECHNOLOGIES' PUBLICIST WAS IN THE MAIL WHAT A TESTIMONIAL THE PR MAN CROWED MRS DAVISON PRAISES THE GRILL RELATING HOW IT LETS HER FIX CHICKEN BREASTS AND BONELESS PORK CHOPS IN A MINUTE OR TWO BUT MRS DAVISON HAS BEEN PICKING THE COMPANY GIFT FOR SOME 20 YEARS AND ADMITS IT'S GETTING A LITTLE HARD THE GRILL MUST COMPETE WITH ONE OF HER BIGGEST SUCCESSES QUILTED ALLWEATHER JACKETS THAT WENT OVER GREAT WITH DAVISON TRANSPORT'S EMPLOYEES MRS DAVISON SAYS ADDING BUT THAT ONE WAS A PAIN GETTING EVERYBODY'S SIZE AND HOW DO THE EMPLOYEES FEEL THIS YEAR KATHY KINCANNON WHO WORKS IN ACCOUNTS RECEIVABLE OPENED HER GIFT AS MR DAVISON TALKED TO A REPORTER ON THE PHONE THIS COOKS A HAMBURGER IN A MINUTE AND A HALF COAXED MR DAVISON MS KINCANNON VOCALIZED SOME APPRECIATIVE OOHS AND AHHS AND GOT ON THE PHONE TO TALK ABOUT CHRISTMAS AT DAVISON TRANSPORT ON TOP OF GIVING US A GIFT MR DAVISON'S GIVING US GIRLS A LUNCHEON SO HE'S SPENDING AN HOUR WITH US THEN THERE'S THE ANNUAL DAVISON TRANSPORT CHRISTMAS PARTY IT'S KIND OF A BIG DEAL THERE'S A LOT OF PEOPLE IN TOWN WHO BEG TO FIND SOMEBODY TO TAKE THEM SAYS MS KINCANNON THIS YEAR'S PARTY FEATURED RONNIE MCDOWELL AND THE JORDANAIRES WHO SANG BACKUP FOR ELVIS 9312150081 931215 PREMDOR PLANS SALE OF SHARES TORONTO PREMDOR INC SAID IT EXPECTS TO RAISE 405 MILLION CANADIAN DOLLARS US305 MILLION FROM THE SALE TO A GROUP OF UNDERWRITERS OF 27 MILLION SHARES AT C15 US1130 A SHARE PREMDOR A DOOR MANUFACTURER SAID IT WILL USE PROCEEDS TO EXPAND ITS OPERATIONS THROUGH ACQUISITIONS IN EUROPE AND NORTH AMERICA THE SHARES ON'T BE REGISTERED FOR SALE IN THE US PREMDOR CURRENTLY HAS 326 MILLION SHARES OUTSTANDING THE UNDERWRITING GROUP LED BY FIRST MARATHON SECURITIES LTD HAS THE OPTION TO INCREASE THE ISSUE TO 32 MILLION SHARES WHICH WOULD RESULT IN GROSS PROCEEDS OF C48 MILLION THE TRANSACTION IS SUBJECT TO REGULATORY APPROVAL IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY PREMDOR CLOSED AT 1150 DOWN 125 CENTS 9312150080 931215 WHO'S NEWS MACNEALSCHWENDLER CORP MACNEALSCHWENDLER CORP LOS ANGELES ARTHUR REIDEL WAS ELECTED A DIRECTOR OF THIS MAKER OF SOFTWARE PRODUCTS USED IN COMPUTERAIDED ENGINEERING INCREASING THE BOARD TO EIGHT MR REIDEL 43 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SUNRISE TEST SYSTEMS INC 9312150079 931215 DEBARTOLO POSTPONES PLANS TO RAISE 600 MILLION BY SELLING STAKES IN MALLS BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL FACED WITH A DETERIORATION OF THE MARKET FOR REALESTATE STOCKS MALL IMPRESARIO EDWARD DEBARTOLO POSTPONED PLANS TO RAISE ABOUT 600 MILLION BY SELLING THE PUBLIC A MAJORITY STAKE IN 51 REGIONAL MALLS WE WEREN'T GOING TO DO THE DEAL UNLESS WE FELT WE WERE GETTING FAIR VALUE FOR THE BUSINESS AND THE ASSETS SAID RICHARD SOKOLOV PRESIDENT AND CHIEF EXECUTIVE OFFICER OF DEBARTOLO REALTY CORP BASED IN YOUNGSTOWN OHIO WE JUST CONCLUDED THAT WE WEREN'T GOING TO GET FAIR VALUE THE DECISION CAME JUST AS THE DEAL WAS EXPECTED TO BE PRICED AND LESS THAN A DAY AFTER FELLOW MALL TYCOON MELVIN SIMON WAS FORCED TO SELL SHARES IN HIS OWN 840 MILLION INITIAL PUBLIC OFFERING AT WELL BELOW HIS INITIAL TARGET PRICE OVER THE PAST SEVERAL WEEKS UNDERWRITERS HAVE ALSO POSTPONED THE PUBLIC OFFERINGS OF THREE OTHER SHOPPINGCENTER DEVELOPERS MACERICH CO OF LOS ANGELES GLIMCHER REALTY TRUST OF COLUMBUS OHIO AND JP REALTY OF SALT LAKE CITY BECAUSE OF PRICING CONCERNS IN ADDITION PRIME RETAIL INC OF CHICAGO POSTPONED ITS OFFERING UNTIL NEXT YEAR BEFORE THE MARKETING EFFORT BEGAN MANY OF THE US'S OTHER PREMIER RETAIL DEVELOPERS HAVE FORMED REALESTATE INVESTMENT TRUSTS OVER THE PAST YEAR RAISING MONEY BY SELLING STAKES IN THESE NEW COMPANIES TO THE PUBLIC BUT SINCE LATE SUMMER SHARE PRICES OF MALL REITS HAVE SLUMPED MORE THAN 15 WE COULD HAVE GOTTEN THE DEAL DONE SAID CHRIS NIEHAUS A PRINCIPAL AT MORGAN STANLEY & CO LEAD UNDERWRITER OF THE PLANNED DEBARTOLO OFFERING BUT THE SUPPLYANDDEMAND IMBALANCE HAD GOTTEN TO THE POINT THAT IT WAS A BUYERS' MARKET IT JUST DIDN'T MAKE SENSE TO SELL AT THOSE NUMBERS WE RECOMMENDED TO OUR CLIENT NOT TO SELL MR DEBARTOLO THE 84YEAROLD HEAD OF THE COMPANY MADE THE DECISION AFTER CONSULTING WITH THE COMPANY'S LENDERS WHO WERE TO RECEIVE ABOUT 500 MILLION OF THE OFFERING'S PROCEEDS LAST YEAR MR DEBARTOLO'S LENDERS AGREED TO RESTRUCTURE MORE THAN 4 BILLION IN DEBT AFTER A SERIES OF MISSTEPS AND A PLUMMETING REALESTATE MARKET COMBINED TO PLACE HIS EMPIRE ON SHAKY GROUND ONE PERSON FAMILIAR WITH THE COMPANY'S PLANNING SAID THAT ALTHOUGH ABOUT 250 MILLION IN LOANS ON FIVE MALLS WOULD COME DUE OVER THE NEXT FIVE YEARS THE COMPANY WASN'T FACING AN IMMEDIATE DEBT CRISIS WHICH MEANT THAT THE BANKS COULDN'T FORCE THE COMPANY TO GO THROUGH WITH THE OFFERING IT'S UNCLEAR HOW QUICKLY THE COMPANY WILL HAVE TO RAISE ADDITIONAL CAPITAL SIMON PROPERTY GROUP INC HAD TO PROVIDE INVESTORS WITH A DIVIDEND YIELD OF 85 TO COMPLETE ITS OFFERING WHICH WAS THE LARGESTEVER EQUITY OFFERING BY A REIT ANALYSTS WERE PROJECTING THAT THE DEBARTOLO COMPANY WOULD HAVE HAD TO OFFER ABOUT 9 I THINK THEY WOULD HAVE BEEN FOOLISH TO DO THE DEAL AT THAT PRICE SAID MIKE KIRBY A REIT ANALYST WITH NEWPORT BEACH CALIFBASED GREEN STREET ADVISORS MR KIRBY PREDICTED THAT THE COMPANY WOULD STEP UP EFFORTS TO DETERMINE HOW MUCH IT COULD RAISE SELLING ASSETS INTO THE PRIVATE MARKET LAST MONTH PRUDENTIAL INSURANCE CO OF AMERICA SCRAPPED PLANS TO SELL ITS CENTERMARK PROPERTIES INC MALL SUBSIDIARY TO THE PUBLIC IN FAVOR OF AN 870 MILLION PRIVATE SALE MR KIRBY NOTED THAT THE BUYER OF PRUDENTIAL'S MALLS WOULD RECEIVE AN ANNUAL RETURN OF ABOUT 8 ON THE INVESTMENT A FULL PERCENTAGE POINT LESS THAN THE DIVIDEND YIELD HE EXPECTED DEBARTOLO WOULD HAVE HAD TO OFFER IN ANNOUNCING THE POSTPONEMENT THE COMPANY SAID ONLY THAT IT WILL EXAMINE ALL OF ITS ALTERNATIVES INCLUDING TAPPING THE PUBLIC MARKETS IN THE FUTURE 9312150078 931215 LEISURE & ARTS OPERA PAVAROTTI AS A TEENAGE MUSLIM BY MANUELA HOELTERHOFF NEW YORK IN HER NEW BIOGRAPHY OF GIUSEPPE VERDI MARY JANE PHILLIPSMATZ HELPS EXPLAIN WHY THE COMPOSER'S LITTLEKNOWN I LOMBARDI ALLA PRIMA CROCIATA THE LOMBARDS ON THE FIRST CRUSADE CAME OUT THE WAY IT DID SHE QUOTES FROM THE MEMOIRS OF THE LIBRETTIST TEMISTOCLE SOLERA WHO RECALLED HOW VERDI SO HARD TO PLEASE WAS COMPLAINING ABOUT A LACK OF FIRE BETWEEN THE PRIMA DONNA AND THE TENOR ORDERING UP SOME WARM PHRASES SUGGESTIVE OF THE ORIENT VERDI LOCKED THE LIBRETTIST IN HIS ROOM I FIDDLED AROUND FOR A WHILE SOLERA REMEMBERED JOTTING DOWN HALF A LINE THEN ANOTHER HALF AND GETTING VERY ANGRY I WANTED TO TAKE MY MIND OFF THE WORK I OPENED A CUPBOARD A HALFDOZEN BOTTLES OF WINE WERE LINED UP IN THERE SEEMING TO INVITE ME TO TASTE THEM I TOOK ONE AND OPENED IT GETTING BACK TO WORK I TOASTED EVERY LINE I WROTE WELCOMING IT WITH A GOOD SWIG OF WINE ONLY SIX BOTTLES WITH ITS ASTONISHING PARADE OF HAREM GIRLS NUNS CHRISTIANS FATHERS MOTHERS SOLDIERS OF ISLAM LUNATICS ANGELS ONE HERMIT AND ONE GHOST I LOMBARDI SOUNDS AS IF IT REQUIRED THE LUBRICATING STIMULUS OF SEVERAL VINEYARDS NOW WHO WAS THAT ONE STRUGGLED TO RECALL AT THE METROPOLITAN OPERA THE OTHER NIGHT AS ANOTHER IMPORTANTLOOKING CHARACTER IN A COSTLY OUTFIT DROPPED DEAD TO THE STAGE AFTER A VERY BRIEF APPEARANCE EVEN THE ENTERTAINING SIGHT OF LUCIANO PAVAROTTI AS A MUSLIM YOUTH COULD NOT SAVE THIS NEW PRODUCTION BY MARK LAMOS OF AN OPERA WHOSE TIME SEEMS TO HAVE COME AND GONE SINCE THE ENTHUSIASTIC RECEPTION AT LA SCALA IN 1843 THEIR OWN COUNTRY OCCUPIED BY STUFFY TIDY CENSORIOUS AUSTRIANS ITALIANS ENJOYED WATCHING MEDIEVAL FOREBEARS EXTERMINATE THE MUSLIM INVADERS OF THE HOLY LAND MAYBE IF THEY HADN'T BEEN SO DEPRESSED THEY MIGHT HAVE LIKED THE OPERA A LITTLE LESS MAYBE THEY WERE ALL DRUNK SEEING I LOMBARDI STONE SOBER ISN'T RECOMMENDED EVEN IN THE SPRINGTIME OF HIS LONG CAREER VERDI WAS INCAPABLE OF WRITING A TOTALLY DULL PIECE AND THE SCORE INTERMITTENTLY SHINES WITH ROUSING ENSEMBLES SPLENDIDLY SUNG BY THE MET'S CHORUS AND OCCASIONAL BURSTS OF HEARTFELT MELODY ALREADY VERDI WAS SUBSTITUTING MUSCLE FOR THE FLOWERY SWEETNESS OF THE BEL CANTO STYLE HE HELPED UPROOT BUT UNLIKE SUCH OTHER YOUTHFUL WORKS AS NABUCCO AND ATTILA I LOMBARDI FAILS TO PRESENT EVEN ONE PLAUSIBLE CHARACTER WHOSE FATE TOUCHES US IN ANY WAY MR PAVAROTTI FOR INSTANCE DIDN'T EVEN APPEAR UNTIL THE SECOND ACT AND THEN SPENT THE REST OF THE EVENING EITHER DYING OR DEAD AFTER DELIVERING THE OPERA'S ONLY WELLKNOWN ARIA ORONTE'S LA MIA LETIZIA INFONDERE WITH HIS CUSTOMARY LIMPID ELEGANCE NO DOUBT THE RESTFUL ASPECT OF ORONTE'S UNDEMANDING PART IS THE REASON WE GOT THIS UNNECESSARY PRODUCTION AND HIM IN IT THE ARIA DESCRIBES THE NORMAN MAIDEN GISELDA WHO RESIDES IN ORONTE'S FATHER'S HAREM JUST HOW SHE GOT THERE FROM MILAN IS ONE OF MANY MYSTERIES IN A STORY THAT CONSISTENTLY AVOIDS THE POTENTIALLY INTERESTING CONFLICT BETWEEN CIVILIZATIONS IN FAVOR OF A GROTESQUE FAMILY DRAMA INVOLVING A DISGUISED HOLY LAND HERMIT WHO ACCIDENTALLY KILLED HIS FATHER WHILE TRYING TO MURDER HIS BROTHER AND STEAL HIS WIFE THE OPERA ENDS WITH THE BROTHERS REUNITED UNDER A GIGANTIC PLASTIC CRUCIFIX SO HIDEOUS I WAS SURPRISED THEY DIDN'T CHUCK THEIR WEAPONS AND CONVERT TO ISLAM ON THE SPOT THIS IS THE KIND OF OPERA GILBERT & SULLIVAN LOVED TO SPOOF AND THERE ARE PROBABLY ONLY THREE WAYS TO DEAL WITH IT TODAY WITH THE TRADITIONAL TRAPPINGS IN AN ABSTRACT MODERN STYLE AND NOT AT ALL MAKING HIS COMPANY DEBUT MR LAMOS AND HIS SET DESIGNER JOHN CONKLIN CAUTIOUSLY STRADDLED THE FIRST TWO OPTIONS LEAVING US TO PONDER THE THIRD AT TIMES THE RADIANTLY SURREAL LIGHTING BY PAT COLLINS CREATED THE KIND OF STRANGE WORLD IN WHICH THE OPERA'S ABSURDITIES SEEMED POSSIBLE BUT MOSTLY THE PRODUCTION MISTOOK OUTSIZED SYMBOLS FOR BOLD IDEAS INSTEAD OF DOWNPLAYING THE OPERA'S CRUDENESS MR CONKLIN EMPHASIZED IT WITH A GIGANTIC CRESCENT MOON AND SO MANY CROSSES YOU WONDERED IF A LOCAL CATHOLIC HIGH SCHOOL HAD GONE OUT OF BUSINESS IN A RARE MOMENT OF POETIC SIMPLICITY THE SCENERY LIFTED INTO THE SKIES AS A VISION OF HEAVEN OPENED UP FOR GISELDA AND HER CAREWORN WORLD DISAPPEARED UNFORTUNATELY THE SOPRANO SINGING HER DIDN'T DISAPPEAR WITH IT THIS WAS NOT A GOOD OUTING FOR THE UNDIRECTABLE APRILE MILLO WHO SPENT THE NIGHT STALKING THE STAGE LIKE AN ANGRY HEN WONDERING WHERE TO LAY AN EGG IT DIDN'T TAKE HER LONG GISELDA'S SILVERY PRAYER IN THE FIRST ACT WAS ONLY THE FIRST OF SEVERAL SCARY ENCOUNTERS WITH A ROLE MS MILLO ATTACKED WITH WANDERING PITCH TROUBLED TOP NOTES AND INADEQUATE TECHNIQUE WHAT HAS HAPPENED TO THIS PROMISING VOICE AT LEAST HER UNCLE OF THE EVENING SAMUEL RAMEY BROUGHT AN EXCITING EDGE TO THE DEMENTED MUSIC OF PAGANO NOT A PAGAN JUST A BLOODTHIRSTY CHRISTIAN THE REST OF THE CAST WAS NOT IMPROVED BY THE NOISY SINGING OF BRUNO BECCARIA AS ARVINO PAGANO'S BROTHER AND GISELDA'S UNPLEASANT FATHER IN THE PIT JAMES LEVINE AMPLY CONVEYED HIS HAPPINESS WITH THIS LOUD BUT AT LEAST NOT LONG SCORE THOUGH IN HIS CAPACITY OF MET ARTISTIC DIRECTOR HE HAD REASON TO BE GLUM I LOMBARDI REPEATS ON DEC 17 AND 21 JAN 7 12 15 AND 20 WHEN LAUREN FLANIGAN SINGS GISELDA THOUGH FOR THE PRICE OF AN ORCHESTRA SEAT YOU COULD PICK UP THE EXCELLENT 20YEAROLD PHILIPS RELEASE STARRING THE UNDERRATED DUTCH SOPRANO CRISTINA DEUTEKOM PLACIDO DOMINGO AND RUGGERO RAIMONDI WITH FUNDS LEFT OVER FOR MS PHILLIPSMATZ'S VERDI KNOPF 941 PAGES 45 THIS IS QUITE A REMARKABLE ACHIEVEMENT A METICULOUSLY RESEARCHED COOL ACCOUNT OF A COMPLEX GENIUS WHO PERIODICALLY FLED THE BACKSTABBING OPERA WORLD TO BURY HIMSELF AND HIS EQUALLY COMPLICATED SECOND WIFE GIUSEPPINA STREPPONI IN THE DEADLY CALM OF HIS VAST FARMLANDS AT SANT' AGATA HE BRED HORSES AND PIGS HE WROTE OPERAS THAT CHANGED MUSIC HISTORY AND UNITED ITALY'S PATRIOTS HE FORMED FRIENDSHIPS WITH MEN AND WOMEN THAT LASTED DECADES AND NURSED GRUDGES WITH EQUAL FERVOR HE MAY HAVE STUFFED A DAUGHTER INTO AN ORPHANAGE AND HE FELL DEEPLY IN LOVE WITH THE SOPRANO TERESA STOLZ LATE IN LIFE MS PHILLIPSMATZ'S BOOK IS OF EPIC LENGTH BUT VERDI DESERVES NOTHING LESS THE PUBLISHER OF VERDI BY MARY JANE PHILLIPSMATZ REVIEWED ON THE DEC 15 LEISURE & ARTS PAGE IS OXFORD UNIVERSITY PRESS 9312150077 931215 BUSINESS BRIEF TOPPS CO THIRDQUARTER NET FELL 59 ON SLUMP IN TRADING CARDS TOPPS CO NEW YORK SAID LOWER SPORTSTRADING CARD PRODUCTION ALONG WITH CONTINUED LETHARGIC DEMAND FOR ITS SPORTSTRADING CARDS CONTRIBUTED TO A 59 DECLINE IN THIRDQUARTER NET INCOME FOR THE QUARTER TOPPS REPORTED NET OF 47 MILLION OR 10 CENTS A SHARE VS 114 MILLION OR 24 CENTS A SHARE A YEAR EARLIER REVENUE DECREASED 77 TO 578 MILLION FROM 626 MILLION TOPPS BEST KNOWN FOR ITS BASEBALLTRADING CARDS ALSO MAKES ENTERTAINMENT COLLECTIBLES AND CONFECTIONERY ITEMS IN NASDAQ MARKET TRADING TOPPS FELL 50 CENTS TO 7 9312150076 931215 ECONOMY RETAIL SALES CLIMBED 04 IN NOVEMBER DURABLEGOODS ITEMS PACE EIGHTH RISE IN A ROW CAN BUYING MOOD LAST BY DAVID MULHOLLAND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RETAIL SALES ROSE 04 IN NOVEMBER THE COMMERCE DEPARTMENT SAID THE EIGHTH CONSECUTIVE MONTHLY INCREASE AND ANOTHER SIGN THAT AMERICANS ARE BACK IN A BUYING MOOD STRONG DEMAND FOR FURNITURE APPAREL AND BUILDING MATERIALS HELPED PUSH SALES TO 17893 BILLION FROM 17820 BILLION IN OCTOBER DEPARTMENT STORE SALES FELL FROM OCTOBER AND AUTO SALES WERE NEARLY FLAT NOVEMBER'S SALES ARE A DECENT INCREASE COMING ON THE HEELS OF A VERY STRONG OCTOBER SAID STUART HOFFMAN CHIEF ECONOMIST AT PNC BANK CORP IN PITTSBURGH SALES ROSE A REVISED 18 IN OCTOBER SOME ECONOMISTS CAUTION THAT SPENDING WHICH HAS BEEN DRIVEN BY LOW INTEREST RATES HAS OUTPACED GROWTH IN INCOME AND ISN'T SUSTAINABLE DURABLEGOODS SALES POWERED THE INCREASE IN RETAIL SALES LAST MONTH SHOWING A A GAIN OF 09 WHILE NONDURABLES LIMPED ALONG WITH A 01 INCREASE DURABLE GOODS LONGLASTING ITEMS SUCH AS FURNITURE AND REFRIGERATORS ARE OFTEN BOUGHT ON CREDIT AND THE FIGURES SHOW HOW SENSITIVE CONSUMPTION IS TO LOW INTEREST RATES SAID JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG & CO OVER THE PAST YEAR DURABLEGOODS SALES HAVE RISEN 137 WHILE SALES OF NONDURABLES EDGED UP ONLY 33 BARELY EXCEEDING THE INFLATION RATE FURNITURE SALES JUMPED 37 IN NOVEMBER THEIR BIGGEST GAIN IN 10 YEARS REFLECTING THE RECENT INCREASES IN HOUSING SALES PEOPLE ARE NOW BUYING FURNITURE AND APPLIANCES FOR THEIR NEW HOMES SAID RICHARD BERNER CHIEF ECONOMIST AT MELLON BANK IN PITTSBURGH SALES OF BUILDING MATERIALS WERE UP 11 SLOWER THAN OCTOBER'S RISE OF 34 BUT STILL SUBSTANTIAL MANY ECONOMISTS SAID THE BOOM IN BUILDING MATERIALS REFLECTS THE RISE IN HOUSING STARTS AND REBUILDING AFTER THE MIDWEST FLOODS AND SOUTHERN CALIFORNIA FIRES APPAREL AND ACCESSORY STORES REPORTED A 14 GAIN LAST MONTH WHILE DEPARTMENT STORE SALES FELL 07 AS THE HOLIDAY SEASON WAS BEGINNING RETAILERS ARE OPTIMISTIC THAT BOTH OF THESE NUMBERS WILL INCREASE AS WINDOW SHOPPERS OF NOVEMBER BECOME BUYERS OF DECEMBER SAID TRACY MULLIN PRESIDENT OF THE NATIONAL RETAILERS FEDERATION AUTO SALES DROPPED 01 IN NOVEMBER BUT THAT FOLLOWS A 5 LEAP IN OCTOBER ANALYSTS SAID OCTOBER'S HIGH SALES LEVEL COULDN'T BE REPEATED BUT THEY SAID THAT EVEN KEEPING UP WITH THE OCTOBER PACE SHOULD LEAD TO STEPPEDUP PRODUCTION ALL FIGURES ADJUSTED FOR SEASONAL VARIATIONS BUT NOT FOR INFLATION 9312150075 931215 INTERNATIONAL ZHIRINOVSKY FUROR DOES THIS ODD DUCK DO THE GOOSE STEP HE SAYS I AM NOT A FASCIST' BUT VICTOR IN RUSSIAN VOTE HAS FOES RUNNING SCARED BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THE SINGLE MOST STUNNING RESULT OF RUSSIA'S PARLIAMENTARY ELECTION WAS THE RISE OF VLADIMIR ZHIRINOVSKY PUNDITS WERE SHOCKED WHEN RETURNS SHOWED MR ZHIRINOVKSY'S INAPTLY NAMED LIBERAL DEMOCRATIC PARTY EMERGING AS PARLIAMENT'S BIGGEST SINGLE PARTY REFORMERS IN GOVERNMENT WHO CALL HIM A FASCIST IN BUFFOON'S CLOTHING WERE HORRIFIED THE TALL HUSKY MR ZHIRINOVSKY HIMSELF REMAINS WARY WE MUSTN'T LET THE EUPHORIA OF VICTORY DULL OUR SENSES BECAUSE THEY ARE STILL TRYING TO STEAL OUR VOTES HE TOLD CLOSE AIDE AKHMET KHALITOV IN A PRIVATE CONVERSATION AS RETURNS CAME IN SUNDAY NIGHT WARNING THAT ELECTION RESULTS WERE BEING FALSIFIED TO DIMINISH HIS PARTY'S VICTORY IT WAS JUST THIS KIND OF PARANOID REFRAIN THAT HELPED HIS PARTY VAULT FROM THE SIDELINES INTO THE LIMELIGHT MR ZHIRINTENT BLEND OF NATIONAL PRIDE XENOPHOBIA PARANOIA AND AUTHORITARIANISM APPEALED TO THE MANY PEOPLE WHO FEEL THAT THEIR COUNTRY HAS BEEN DEGRADED AND THAT REFORMS HAVE BROUGHT ONLY CHAOS I VOTED FOR HIM BECAUSE HE'S A STERN GUY AND HE'LL BRING ORDER SAYS ALEXANDER TRISHIN A 43YEAROLD SELLING TEA ON A DOWNTOWN MOSCOW STREET RUSSIA IS USED TO AN IRON FIST A LAWYER AND TURKISHASIAN SPECIALIST WHO SPEAKS FIVE LANGUAGES THE 47YEAROLD MR ZHIRINOVSKY WRAPS HIS IRON FIST IN A POPULISM THE DETAILS OF WHICH VARY WITH THE TIMES HE BLAMES THE WEST FOR THE DISINTEGRATION OF THE SOVIET UNION AND AT LEAST SOMETIMES CALLS FOR THE RECLAIMING OF FORMER SOVIET TERRITORY FOR A REVIVED RUSSIAN EMPIRE HE BELIEVES IN STATE SUPPORT FOR INDUSTRY BUT ALSO IN PRIVATE PROPERTY WHEN HE RAN FOR PRESIDENT IN 1991 HE CAME IN SECOND ON A PLATFORM THAT INCLUDED PROMISES OF CHEAP VODKA AS A RESULT HE HAS APPEARED BY TURNS A FASCIST A PATRIOT AND A CLOWN IN ONE OF HIS FINAL CAMPAIGN STATEMENTS HE PROPOSED THAT ONLY BLONDHAIRED BLUEEYED RUSSIANS BE USED AS TELEVISION ANNOUNCERS ADVOCATES OF MARKETECONOMY REFORM AND MEMBERS OF PRESIDENT BORIS YELTSIN'S GOVERNMENT SAY THERE ISN'T ANY QUESTION ABOUT MR ZHIRINOVSKY'S TRUE COLORS THE THREAT OF FASCISM HAS RISEN TALL AND HIGH SAID SERGEI KOVALOV A LEADER OF THE POLITICAL BLOC RUSSIA'S CHOICE IN A NEWS CONFERENCE MONDAY THE PEOPLE HAVE BEEN DECEIVED BY POPULIST SLOGANS UNREALIZABLE PROMISES AND CHEAP ACTING DEPUTY PRIME MINISTER YEGOR GAIDAR URGED THE FORMATION OF A BROAD ANTIFASCIST COALITION OTHERS DREW PARALLELS BETWEEN ADOLPH HITLER IN 1932 AND MR ZHIRINOVSKY TODAY FOR HIS PART MR ZHIRINOVSKY SCOFFS AT THE DIRE WARNINGS I AM NOT A FASCIST HE SAYS HE IS USED TO THE ACCUSATIONS SINCE CREATING HIS PARTY IN 1990 HE HAS BEEN CONDEMNED AS A FASCIST LEADER IN THE MAKING OR SOMEONE WHO COULD BE MANIPULATED BY FASCISTS MR ZHIRINOVSKY'S OFFICE OVERFLOWS WITH MEMENTOES PRESENTED BY SUPPORTERS A HUGE MAP SHOWING RUSSIA IN ITS PREREVOLUTIONARY BORDERS FILLS ONE OFFICE WALL AND MR ZHIRINOVSKY PLEDGES TO RETURN CONTROL OF THE NATION TO TRUE RUSSIANS HE PROMISES TO IMPROVE LIFE FOR THE ORDINARY RUSSIAN BY LOWERING PRICES AND INCREASING HANDOUTS HE BLAMES FOREIGNERS FOR RUSSIA'S DECLINE SOMETIMES WARNING OF A ZIONIST PLOT WE'RE AGAINST ANTISEMITISM HE SAID IN AN INTERVIEW LAST YEAR BUT WE ALSO DON'T WANT ZIONISM WE WANT A RUSSIAN NATIONALIST GOVERNMENT AFTER ALL THESE YEARS CRITICS WORRY HOWEVER THAT HE HARBORS A BITTERNESS ABOUT HIS OWN UPBRINGING AND A THIRST FOR ATTENTION THAT PARALLEL THOSE OF POLITICIANS WHO TURNED INTO DICTATORS A LONER MR ZHIRINOVSKY DESCRIBES HIMSELF AS A CHILD WHO GREW UP IN EXTREME POVERTY EVEN THOUGH HIS FAMILY PREVIOUSLY HAD BEEN PART OF RUSSIA'S ELITE FOR SEVEN GENERATIONS I REMEMBER IN SCHOOL THAT ONE GIRL HAD A BALLPOINT PEN AND I DIDN'T HE SAID IN THE INTERVIEW LAST YEAR CURLING HIS LIP IN A GRIMACE OR I WOULD VISIT A HOME WHERE THEY HAD HOT WATER BUT WE DIDN'T IF I HAD LIVED IN GOOD CONDITIONS WARM AND WELLFED MAYBE I WOULDN'T HAVE BECOME INVOLVED IN POLITICS HIS RIGHTHAND MAN MR KHALITOV SAYS PROPOSALS LIKE THE CALL FOR BLUEEYED TELEVISION ANNOUNCERS AREN'T FASCIST OR RACIST JUST GOOD POLITICS WHEN HE'S TALKING TO BLUEEYED PEOPLE HE SAYS THINGS LIKE THAT EXPLAINS MR KHALITOV A BROWNEYED 64YEAROLD TATAR BUT HE ADJUSTS WHAT HE SAYS WHEN HE TALKS TO OTHER PEOPLE SOMETIMES HE SAYS MORE THAN HE SHOULD SUCH EXCESSES HAVE AT TIMES DRAWN UNABASHED RACISTS AND ANTISEMITES INTO MR ZHIRINOVSKY'S CIRCLE INCLUDING THE ANTISEMITIC GROUP PAMYAT AND THE OWNER OF ONE OF RUSSIA'S BANNED FASCIST NEWSPAPERS DYEN MR KHALITOV ACKNOWLEDGES THAT MR ZHIRINOVSKY COULD BE USED BY FASCISTS EVEN IF HE ISN'T ONE HIMSELF THE DANGER OF COURSE EXISTS SAYS MR KHALITOV SOMETIMES MR ZHIRINOVSKY JUST SOUNDS BIZARRE STABBING AT A WORLD MAP DURING THE INTERVIEW LAST YEAR HE EXPLAINED ONE OF HIS FAVORITE PLANS HE WILL SIT DOWN WITH THE US PRESIDENT AND DIVIDE SPHERES OF INFLUENCE WITH RUSSIA KEEPING IRAN TURKEY AND AFGHANISTAN HE TOLD A FINNISH REPORTER MONDAY THAT INSTEAD OF PURSUING FINLAND'S TERRITORIAL CLAIMS TO THE RUSSIAN PROVINCE OF KARELIA FINNS COULD COME TO RUSSIA TO WORK AND RUSSIAN CHILDREN COULD GO TO FINLAND TO MEET SANTA CLAUS BUT FOREIGN POLICY REFORMERS POINT OUT THAT MR ZHIRINOVSKY IS QUITE SERIOUS ABOUT HIS NATIONALIST LINE FOR EXAMPLE HE THINKS RUSSIA SHOULD TOUGHEN ITS POLICIES TOWARD OTHER FORMER SOVIET REPUBLICS IT'S ALL VERY EASY HE TOLD THE DAILY IZVESTIA TWO WEEKS AGO WE CEASE SUPPLYING TIMBER TO UKRAINE AND ALL THE MINES OF ITS MAJOR COAL REGION OF DONBASS WILL COLLAPSE AND IN THREE MONTHS UKRAINE WILL KNEEL HIS ECONOMIC PROGRAM ALSO IS NATIONALISTIC MR ZHIRINOVSKY OPPOSES CONVERSION OF MILITARY INDUSTRY TO CIVILIAN PURPOSES ONE OF THE KEY ELEMENTS OF THE ECONOMIC REFORM PROGRAM UNDER WAY HE ADVOCATES INSTEAD A STRONGER STATE SECTOR IN THE ECONOMY REINTRODUCTION OF STATE ORDERS AND A RESTORATION OF TIES BETWEEN ENTERPRISES ACCORDING TO SOME REPORTS NONRUSSIANS WOULD BE BANNED FROM TRADING IN RUSSIA AND FOREIGN REFUGEES WON'T BE ALLOWED INTO THE COUNTRY MR ZHIRINOVSKY HAS PROVEN WILLING TO CHANGE HIS LINE ON KEY ISSUES IN HIS QUEST FOR POWER A FIRM STANCE AGAINST RETURNING THE KURIL ISLANDS TO JAPAN FOR EXAMPLE WAS A MAJOR FACTOR IN HIS STRONG ELECTORAL SHOWING IN THE RUSSIAN FAR EAST BUT IN A 1990 INTERVIEW MR ZHIRINOVSKY PROPOSED A SWEEPING OVERHAUL OF SOVIET FOREIGN POLICY OF THE KURILS HE SAID THEN WE WOULD GIVE THEM BACK AND MAYBE CREATE A LEASING ARRANGEMENT FOR SAKHALIN AT A NEWS CONFERENCE TUESDAY HE DENIED ANY DESIRE TO EXPAND RUSSIAN TERRITORY DESPITE PASSAGES TO THE CONTRARY IN HIS AUTOBIOGRAPHY WHICH HE SHOWED OFF TO REPORTERS AT THE SAME NEWS CONFERENCE HE ALSO SAID THAT HE HOPES EVENTUALLY TO ERADICATE NATIONALISM FUELING HIS REPUTATION FOR ODD BEHAVIOR HE SHOWED UP IN A TUXEDO WITH GRAY PAISLEY CUMMERBUND AND TIE EXPLAINING THAT HE BELIEVES IN PLURALISM INCLUDING IN MATTERS OF DRESS MR ZHIRINOVSKY SAYS HE IS A FIERCE ANTICOMMUNIST BUT WHEN HIS PARTY WAS FORMED DURING THE PERIOD OF OPENNESS AT THE END OF THE COMMUNIST ERA IT GOT PUBLICITY IN OFFICIAL COMMUNIST PARTY NEWSPAPERS THAT OTHER PARTIES COULDN'T DREAM OF OPPONENTS CHARGED MR ZHIRINOVSKY WITH HAVING TIES TO THE PARTY AND THE KGB SOMETHING HE HAS ALWAYS DENIED HE DOES HAVE AN UNQUENCHABLE THIRST FOR ATTENTION SOME SIX MONTHS AFTER MR ZHIRINOVSKY DREW SIX MILLION VOTES IN THE 1991 PRESIDENTIAL ELECTION HE PUT UP A STRUGGLE TO STAY ON THE POLITICAL STAGE HARDLY A WEEK WENT BY WITHOUT A ZHIRINOVSKY APPEARANCE ON THE NIGHTLY NEWS AT AN OBSCURE RALLY OR MEETING OF HARDLINERS HE EVEN PROFITED FROM HIS CRITICS GAINING PUBLICITY BY BRINGING MORE THAN 20 LIBEL SUITS IN MOSCOW ALONE AGAINST NEWS ORGANIZATIONS THAT SUGGESTED HE WAS A FASCIST AND KGB COOPERATOR WHEN MR YELTSIN'S GOVERNMENT GOT GOING IN 1992 AND BECAME EMBROILED IN ITS OWN PROBLEMS FEW PEOPLE CONSIDERED MR ZHIRINOVSKY A SERIOUS THREAT BUT WITH MAINSTREAM PARTIES ASSUMING THEY COULD WALTZ THROUGH THE ELECTIONS THE LIBERAL DEMOCRATIC PARTY WAS ENERGETICALLY PURSUING LEGITIMACY MR ZHIRINOVSKY'S PURSUIT OF POWER WON'T END WITH HIS VICTORY SUNDAY HE HAS SAID THAT HIS PARTY WILL INSIST ON HIS BEING NAMED SPEAKER OF THE LOWER HOUSE OF PARLIAMENT THE STATE DUMA AND WHENEVER PRESIDENTIAL ELECTIONS ARE NEXT HELD HE SAYS HE WILL RUN 9312150074 931215 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION HEALTHCARE REALTY TRUST INC AN OFFERING OF FIVE MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP SMITH BARNEY SHEARSON INC AND EQUITABLE SECURITIES CORP ORCHARD SUPPLY HARDWARE CORP AN OFFERING OF UP TO 100 MILLION OF SENIOR NOTES VIA LEHMAN BROTHERS AND JEFFRIES & CO UNITED COS FINANCIAL CORP AN OFFERING OF ONE MILLION COMMON SHARES PRICED AT 32 A SHARE VIA OPPENHEIMER & CO 9312150073 931215 BUSINESS BRIEF QUADREX CORP FIRM TWO FORMER OFFICERS ARE ACCUSED IN HOLDERS' SUIT QUADREX CORP ALREADY GRAPPLING WITH HEAVY LOSSES AND A CHANGE IN TOP MANAGEMENT SAID A SHAREHOLDERS' LAWSUIT WAS FILED AGAINST THE ENERGY COMPANY THE SUIT WHICH SEEKS CLASSACTION STATUS WAS FILED IN FEDERAL COURT IN TALLAHASSEE FLA AND ALLEGES THAT QUADREX AND TWO FORMER OFFICERS RUSSELL J HAMMER AND WILLIAM DERRICKSON MADE MISLEADING PUBLIC STATEMENTS CONCERNING THE COMPANY'S BUSINESS AND PROSPECTS QUADREX BASED IN GAINESVILLE FLA SAID THE CLAIMS IN THE SUIT ARE WHOLLY UNWARRANTED NEITHER MR HAMMER WHO RESIGNED IN NOVEMBER AS PRESIDENT AND CHIEF OPERATING OFFICER NOR MR DERRICKSON WHO RESIGNED IN OCTOBER AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER COULD BE REACHED FOR COMMENT FOR THE THIRD QUARTER THE COMPANY REPORTED A NET LOSS OF 122 MILLION OR 95 CENTS A SHARE ON 11 MILLION IN REVENUE FOR THE NINE MONTHS THE COMPANY HAD A LOSS OF 235 MILLION OR 191 A SHARE ON 296 MILLION IN REVENUE FORMERLY A WASTEMANAGEMENT AND RECYCLING COMPANY QUADREX SAID IT WOULD BECOME AN ETHANOL PRODUCTION LICENSING AND TECHNOLOGY COMPANY 9312150072 931215 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9312150071 931215 ABREAST OF THE MARKET STOCKS LOSE 2180 POINTS AS BONDS TUMBLE ON CONCERNS OVER RUSSIA BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK A TUMBLING BOND MARKET AND WORRIES ABOUT RUSSIAN POLITICS CLOBBERED THE STOCK MARKET EQUITY PRICES ERODED NEARLY ALL DAY WITH THE DOW JONES INDUSTRIAL AVERAGE CLOSING NEAR ITS SESSION LOW DOWN 2180 OR 058 TO 374263 IT HAD SET A SECONDSTRAIGHT RECORD MONDAY RECENT STRENGTH IN THE BLUE CHIP AVERAGE ESPECIALLY IN THE FACE OF LACKLUSTER ACTION IN BROADER INDEXES HAD LEFT THE MARKET VULNERABLE TO PROFITTAKING ANALYSTS SAID A BLEAK NEWS BACKDROP SET OFF THAT SELLING A STRONG SHOWING BY THE ULTRANATIONALIST LIBERAL DEMOCRAT PARTY IN THE RUSSIAN PARLIAMENT ELECTIONS AND TOUGH TALK FROM PARTY LEADER VLADIMIR V ZHIRINOVSKY WAS UNSETTLING FOR INVESTORS NEWS ACCOUNTS SAID MR ZHIRINOVSKY HAS TALKED OF EXTREME MOVES INCLUDING TAKING ALASKA BACK FROM THE US AND THREATENING GERMANY WITH NUCLEAR WEAPONS ON TOP OF THE RUSSIAN EVENTS INVESTORS WATCHED BOND PRICES TUMBLE AGAIN THE TREASURY'S 30YEAR ISSUE LOST 3/4 POINT OR 750 FOR EACH 1000 FACE AMOUNT LIFTING ITS YIELD TO 628 ANALYSTS LARGELY PLAYED DOWN THE SIGNIFICANCE OF THE RUSSIAN NEWS AND ASSIGNED MUCH OF TODAY'S BEARISHNESS TO THE BOND MARKET AND TO CONTINUED CONCERN ABOUT THE MARKET'S PROSPECTS GIVEN ITS NEARRECORD LEVELS THE STANDARD & POOR'S 500 STOCK INDEX DROPPED 264 OR 057 TO 46306 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 140 OR 054 TO 25619 AND THE DOW JONES EQUITY MARKET INDEX DECLINED 224 OR 051 TO 43846 THE NASDAQ COMPOSITE INDEX MEANWHILE TUMBLED 825 OR 109 TO 75147 NUMBER OF ADVANCING ISSUES TRAILED DECLINERS 696 TO 1376 VOLUME ON THE NEW YORK STOCK EXCHANGE ROSE TO 2739 MILLION SHARES FROM FROM 255 MILLION SHARES MONDAY THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX SHED 294 OR 063 TO 46183 TECHNOLOGY AND COMMUNICATIONS STOCKS LED THE RETREAT ON THE NASDAQ STOCK MARKET NEWBRIDGE NETWORKS LOST 2 1/4 TO 52 3/4 NEXTEL COMMUNICATIONS DROPPED 1 1/2 TO 34 1/2 DSC COMMUNICATIONS DECLINED 3 TO 56 5/8 ORACLE SLIPPED 1 1/2 TO 34 1/2 AND MICROSOFT RETREATED 1 3/8 TO 80 SHANGHAI PETROCHEMICAL PLUMMETED 4 1/4 TO 43 7/8 MERRILL LYNCH & CO ANALYST JOHN ROBERTS CUT A NEARTERM RATING ON THE ISSUE TO NEUTRAL FROM ABOVE AVERAGE CITING ITS HUGE GAINS IN THE PAST SEVERAL SESSIONS THE ADR WAS AT 32 1/2 AT THE END OF NOVEMBER SIMON PROPERTY GROUP INCHED UP TO 22 1/2 ON ITS FIRST DAY OF TRADING AN ISSUE OF 378 MILLION SHARES WAS SOLD AT A PRICE OF 2225 EACH THE 840MILLION OFFERING WAS THE LARGEST EVER BY A REALESTATE INVESTMENT TRUST IT TOPPED THE BIG BOARD'S MOST ACTIVE LIST WITH VOLUME OF 72 MILLION SHARES ANOTHER HUGE REIT OFFERING THOUGH WAS POSTPONED DEBARTOLO REALTY SAID ITS PLAN TO SELL 316 MILLION COMMON SHARES WAS DELAYED BECAUSE OF DIFFICULT MARKET CONDITIONS FOR REITS NEARLY 3 BILLION IN NEW REIT ISSUES WERE PLANNED FOR EARLY THIS MONTH THE HUGE SUPPLY HAS FORCED SEVERAL REITS TO SHELVE OFFERINGS SHARES OF GRUPO TELEVISA A MEXICAN TELEVISIONNETWORK COMPANY CLOSED AT 63 3/4 AN OFFERING OF 155 MILLION SOCALLED GLOBAL DEPOSITARY SHARES WAS PRICED AT 64 APIECE MUCH OF THE ISSUE WAS SOLD BY EMILIO AZCARRAGA MILMO CHAIRMAN OF THE COMPANY AND ONE OF LATIN AMERICA'S WEALTHIEST INDIVIDUALS BROWNFORMAN'S CLASS B STOCK ROCKETED 11 7/8 TO 85 3/4 WHILE ITS CLASS A SURGED 15 1/8 TO 86 THE WINE AND SPIRITS COMPANY IN LOUISVILLE KY SAID IT WILL BUY 35 MILLION CLASS B SHARES AND 700000 CLASS A SHARES THROUGH A DUTCH AUCTION TENDER OFFER IT WILL PAY BETWEEN 83 AND 90 A SHARE FOR THE STOCK FEDERAL EXPRESS GAINED 1 1/2 TO 71 1/2 THE DOCUMENT AND PACKAGEDELIVERY SERVICE IN MEMPHIS TENN POSTED HIGHERTHANEXPECTED SECONDQUARTER EARNINGS LATE MONDAY THE SHARES GAINED 1 5/8 MONDAY AHEAD OF THE EARNINGS REPORT INTERNATIONAL BUSINESS MACHINES SLIPPED 1 1/4 TO 56 1/8 GIVING BACK PART OF MONDAY'S SOLID ADVANCE A RALLY OF 2 1/8 ON MARKETLEADING VOLUME CARRIED BIG BLUE'S SHARES TO A 1993 HIGH MONDAY SHARES OF THE BIG THREE AUTO MAKERS SLIPPED EVEN THOUGH THE MAJOR NORTH AMERICAN PRODUCERS REPORTED SOLID CAR SALES FOR THE FIRST 10 DAYS OF DECEMBER GENERAL MOTORS LOST 1 1/4 TO 54 7/8 FORD MOTOR DROPPED 1 1/4 TO 63 1/2 AND CHRYSLER DECLINED 1 1/2 TO 55 1/8 PARAMOUNT COMMUNICATIONS ROSE 3/4 TO 81 1/8 AFTER THE NEW YORK MEDIA GIANT'S BOARD SAID IT WILL ACCEPT BIDS FOR THE COMPANY FROM VIACOM QVC NETWORK AND ANY OTHER INTERESTED PARTIES SHARES OF VIACOM CLASS B ADDED 1/2 TO 43 1/2 ON THE AMEX WHILE THE STOCK OF QVC ROSE 1 TO 42 ON NASDAQ 9312150070 931215 WHO'S NEWS RETIX RETIX SANTA MONICA CALIF JOE CULP NEIL HYNES AND GILBERT WILLIAMSON WERE ELECTED DIRECTORS OF THIS COMPUTERSOFTWARE MAKER FILLING ONE VACANCY AND INCREASING THE BOARD TO SIX MR CULP 60 YEARS OLD IS A CONSULTANT IN THE TELECOMMUNICATIONS INDUSTRY MR HYNES 58 PREVIOUSLY WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PLANTRONICS INC MR WILLIAMSON 56 WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NCR CORP A SUBSIDIARY OF AMERICAN TELEPHONE AND TELEGRAPH CO UNTIL HIS RETIREMENT EARLIER THIS YEAR THOMAS H BREDT 52 RESIGNED DUE TO OTHER BUSINESS INTERESTS 9312150069 931215 BUSINESS BRIEF PATHMARK STORES INC THIRDPERIOD LOSS WIDENED OPERATING EARNINGS PLUNGED PATHMARK STORES INC FORMERLY SUPERMARKETS GENERAL CORP BEFORE ITS RECENTLY COMPLETED RECAPITALIZATION REPORTED THAT ITS NET LOSS FOR THE FISCAL THIRD QUARTER WIDENED SHARPLY TO 1265 MILLION FROM 104 MILLION A YEAR EARLIER LARGELY THE RESULT OF AN AFTERTAX CHARGE THE WOODBRIDGE NJ SUPERMARKET CONCERN SAID IT HAD OPERATING EARNINGS OF 138 MILLION FOR THE QUARTER ENDED OCT 30 DOWN 61 FROM 35 MILLION A YEAR EARLIER RESULTS FOR THE LATEST QUARTER INCLUDED RECAPITALIZATION EXPENSES OF 237 MILLION PATHMARK ALSO HAD A 1068 MILLION CHARGE FOR PREMIUMS AND WRITEOFF OF DEFERRED FINANCING FEES IN CONNECTION WITH EARLY EXTINGUISHMENT OF DEBT SALES DECLINED 2 TO 105 BILLION FROM 107 BILLION WITH THE EXCLUSION OF SALES FROM FIVE SUPERMARKETS THAT ARE TO BE CLOSED OR SOLD DURING 1994 COMPARABLESTORE SALES FELL ABOUT 1 IN THE QUARTER 9312150068 931215 WHO'S NEWS KENDALL SQUARE FORCES OUT BURKHARDT GIVING DOMINANT ROLE TO CHAIRMAN BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL KENDALL SQUARE RESEARCH CORP'S BOARD FORCED OUT HENRY BURKHARDT III THE SUPERCOMPUTER MAKER'S PRESIDENT AND COFOUNDER SIGNALING A DOMINANT NEW ROLE FOR ITS CHAIRMAN AND LARGEST INVESTOR WILLIAM I KOCH MR BURKHARDT HAD BEEN STRIPPED OF THE CHIEF EXECUTIVE'S POST ONLY THREE WEEKS AGO AFTER KENDALL STUNNED INVESTORS BY RESTATING RESULTS AND WARNING OF SIGNIFICANT LOSSES BUT HE WAS EXPECTED TO REMAIN WORKING WITH MR KOCH A BILLIONAIRE INVESTOR AND YACHTSMAN WHO SAID THEN THAT HE WOULD BE SPENDING ONLY HALF OF HIS TIME ON KENDALL MR KOCH YESTERDAY SAID HE HAS DECIDED TO TAKE THE HELM FULL TIME UNTIL NEW MANAGEMENT IS IN PLACE HE WOULDN'T SAY WHAT HAD CHANGED IN THE PAST THREE WEEKS I WASN'T HAPPY WITH WHAT WAS GOING ON AND THAT'S WHY I LET THEM GO HE SAID OF MR BURKHARDT AND TWO OTHER SENIOR EXECUTIVES WHO THE BOARD ALSO ASKED TO RESIGN I DON'T INTEND TO MAKE A CAREER OF THIS HE SAID OF THE CHIEF EXECUTIVE'S JOB BUT IT'S GOT TO BE DONE UNTIL WE FIND SOMEONE ELSE HE ADDED THAT AN EXECUTIVE SEARCH IS UNDER WAY MR BURKHARDT COULDN'T BE REACHED FOR COMMENT YESTERDAY THE SHAKEUP CAPS AN EXTRAORDINARY STRING OF SETBACKS AT KENDALL WHICH ONLY WEEKS AGO WAS ONE OF THE HOTTEST NEW COMPANIES IN THE COMPUTER INDUSTRY ITS SHARES WHICH TRADED AS HIGH AS 2425 IN OCTOBER YESTERDAY FELL 25 CENTS TO 725 IN ACTIVE NASDAQ STOCK EXCHANGE TRADING THE TWO OTHER SENIOR EXECUTIVES WHOSE FORCED RESIGNATIONS WERE DISCLOSED YESTERDAY HAD ALSO BEEN DEMOTED THREE WEEKS AGO THEY WERE PETER APPLETON JONES WHO HAD BEEN EXECUTIVE VICE PRESIDENT AND KARL G WASSMANN III WHO HAD SERVED AS CHIEF FINANCIAL OFFICER SENIOR VICE PRESIDENT AND CORPORATE SECRETARY MR KOCH DIDN'T DETAIL THE REASONS FOR THE BOARD'S DECISION TO TERMINATE THE THREE SENIOR MANAGERS HE OFFERED INSTEAD AN APHORISM ON TEAMWORK THAT HE SAID HE LEARNED IN HIS AMERICA'S CUP VICTORY LAST YEAR ONE PERSON CAN'T WIN A RACE BUT ONE PERSON CAN LOSE IT FOR YOU HE SAID SOME ANALYSTS WERE PARTICULARLY CONCERNED ABOUT THE LOSS OF MR BURKHARDT KENDALL'S TECHNICAL VISIONARY IT'S A SIGNIFICANT BLOW SAID GARY SMABY AN INDUSTRY CONSULTANT IN MINNEAPOLIS HENRY WAS AS CLOSELY ASSOCIATED WITH KENDALL AS SEYMOUR CRAY WAS AT CRAY RESEARCH IN THE EARLY DAYS OR DANNY HILLIS WAS WITH THINKING MACHINES HE SAID CITING KENDALL'S TWO CHIEF RIVALS BUT MR KOCH WHO HOLDS A 29 STAKE IN KENDALL DISMISSED SUCH TALK THE NEED FOR SOME KIND OF SWEEPING TECHNOLOGICAL VISION IS BULL HE SAID OUR VISION RIGHT NOW IS VERY SIMPLE WE'RE GOING TO MAKE EXTRAORDINARILY FAST COMPUTERS THAT PEOPLE WILL WANT TO PAY MONEY FOR AND WE'RE GOING TO CONCENTRATE ON CONSERVING CASH HE OUTLINED A SERIES OF STEPS INTENDED TO MANAGE RESOURCES MORE TIGHTLY BOOST MANAGEMENT ACCOUNTABILITY AND SHIFT MARKETING EFFORTS TO FOCUS ON COMMERCIAL CUSTOMERS INSTEAD OF UNIVERSITIES ACADEMIC SALES HAVE COMPRISED THE MAJORITY OF INSTALLATIONS TO DATE HE ALSO SAID THE COMPANY WILL NEED ADDITIONAL FINANCING NEXT YEAR AND IN ALL PROBABILITY I'LL BE ONE OF THE INVESTORS HE SAID OTHER INVESTORS ARE LIKELY BUT WOULDN'T REVEAL THEIR IDENTITIES HE ALSO SAID THAT A NUMBER OF SHAREHOLDER LAWSUITS WHICH ALLEGE THAT EXECUTIVES MADE FALSE STATEMENTS ABOUT KENDALL'S GROWTH BEFORE THE RESTATEMENTS WOULD HAVE TO BE RESOLVED FIRST WE HAVE TO SETTLE THOSE SUITS HE SAID NO ONE IN HIS RIGHT MIND WOULD PUT MONEY IN THE COMPANY UNTIL THOSE CONTINGENT LIABILITIES ARE GONE MR KOCH SAID HE HAS BEEN VISITING KENDALL'S CUSTOMERS IN RECENT DAYS CRISSCROSSING THE COUNTRY IN A CHARTERED LEAR JET HE SAID ONE CUSTOMER RECONFIRMED AN EARLIER ORDER WHILE ANOTHER PLACED A NEW ORDER BUT HE ALSO SAID THAT TWO OR THREE PENDING ORDERS HAVE BEEN DELAYED FOLLOWING DISCLOSURE OF KENDALL'S PROBLEMS CUSTOMERS LIKE THE PRODUCT AND MANY OF THEM HAVE SAID THEY WANT TO BUY MORE SYSTEMS HE SAID BUT THEY ARE NATURALLY WORRIED ABOUT THE VIABILITY AND MANAGEMENT OF THE COMPANY KENDALL HAS SAID IT EXPECTS TO REPORT REVENUE FOR THE FIRST NINE MONTHS OF ABOUT 104 MILLION A STARTLING DECLINE FROM THE 247 MILLION IT PREVIOUSLY REPORTED FOR THE FIRST SIX MONTHS EXECUTIVES SAID THE COMPUTER MAKER'S AUDITORS DISCOVERED POORLY WRITTEN SALES CONTRACTS SHIPMENTS TO DISTRIBUTORS THAT DIDN'T HAVE CUSTOMERS COMPUTER SALES TO ACADEMICS WHO HADN'T YET RECEIVED FUNDING AND MACHINES THAT WERE SOLD CONTINGENT ON FUTURE UPGRADES 9312150067 931215 BUSINESS BRIEF DIAMOND SHAMROCK INC REFINER TO CONSTRUCT PIPELINE SERVING EL PASO TEXAS AREA DIAMOND SHAMROCK INC SAID IT WILL BUILD A 400MILE PETROLEUMPRODUCTS PIPELINE AS PART OF A PLAN TO INCREASE FUEL SALES IN THE EL PASO TEXAS AREA THE SAN ANTONIO PETROLEUMPRODUCTS REFINER AND MARKETER SAID THE PIPELINE WILL ORIGINATE AT ITS MCKEE REFINERY IN THE TEXAS PANHANDLE AND WILL END JUST EAST OF EL PASO WHERE THE COMPANY ALSO PLANS TO BUILD A 300000BARREL STORAGE FACILITY AND A TERMINAL TO SERVE WHOLESALE CUSTOMERS PLANS CALL FOR THE TERMINAL TO BE CONNECTED WITH AN EXISTING PIPELINE THAT WILL PROVIDE ACCESS TO ARIZONA MARKETS CONSTRUCTION COSTS FOR THE PROJECT WHICH IS TO BE COMPLETED BY SPRING 1995 WEREN'T DISCLOSED DIAMOND SHAMROCK WHICH HAS 18 OF THE GASOLINE MARKET IN THE EL PASO AREA EXPECTS SIGNIFICANT GROWTH IN DEMAND FOR FUEL PRODUCTS IN THE AREA BECAUSE OF THE NORTH AMERICAN FREE TRADE AGREEMENT 9312150066 931215 BUSINESS BRIEF BRENDLE'S INC MOST CREDITORS SHAREHOLDERS ACCEPT REORGANIZATION PLAN BRENDLE'S INC SAID ITS REORGANIZATION PLAN WAS ACCEPTED BY MORE THAN 99 OF THE UNSECURED CREDITORS AND SHAREHOLDERS VOTING ON THE PROPOSAL THE JEWELRY AND GIFT RETAILER WHICH IS BASED IN ELKIN NC AND OPERATES STORES IN FOUR SOUTHEAST STATES FILED FOR PROTECTION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IN NOVEMBER 1992 A SLOWDOWN IN THE FLOW OF MERCHANDISE FROM SUPPLIERS ORIGINALLY PROMPTED BRENDLE'S TO FILE THE PETITION NOW HOWEVER THE COMPANY'S STORES ARE FULLY STOCKED AND OUR CUSTOMERS HAVE RETURNED TO US SAID DOUGLAS D BRENDLE CHAIRMAN AND CHIEF EXECUTIVE THE REORGANIZATION PLAN IN WHICH CREDITORS WOULD BE PAID 52 CENTS ON THE DOLLAR IN CASH IS SCHEDULED TO TAKE EFFECT NO LATER THAN NEXT APRIL 30 9312150065 931215 BUSINESS BRIEF FIRST EMPIRE STATE CORP CONCERN WILL PURCHASE 75 OF ITS SHARES OUTSTANDING FIRST EMPIRE STATE CORP BUFFALO NY SAID IT WILL BUY 506930 SHARES OF ITS COMMON STOCK EQUAL TO 75 OF ITS SHARES OUTSTANDING THE SHARES WILL BE HELD IN ITS TREASURY AS A RESERVE FOR POSSIBLE FUTURE CONVERSION OF THE SHARES OF ITS 9 CONVERTIBLE PREFERRED STOCK THE SHARES WILL BE BOUGHT FROM TIME TO TIME IN THE OPEN MARKET OR IN PRIVATELY NEGOTIATED TRANSACTIONS THE 9 PERCENT CONVERTIBLE PREFERRED STOCK IS CONVERTIBLE AT ANY TIME INTO FIRST EMPIRE COMMON AT A CONVERSION PRICE OF 7891 PER SHARE SUBJECT TO ADJUSTMENTS AS OF MONDAY THE BANK HOLDING COMPANY HAD 6878525 COMMON SHARES OUTSTANDING IT ALSO HAD 1218947 SHARES AS TREASURY STOCK FOR USE IN A STOCKOPTION PLAN AND OTHER CORPORATE PURPOSES IN TRADING ON THE AMERICAN STOCK EXCHANGE FIRST EMPIRE SHARES CLOSED AT 140625 DOWN 375 CENTS 9312150064 931215 LAW MOZER SENTENCED TO FOUR MONTHS IN SALOMON CASE BY MARGARET A JACOBS AND MICHAEL SICONOLFI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PAUL W MOZER THE FORMER HEAD OF SALOMON BROTHERS INC'S GOVERNMENT SECURITIES TRADING DESK WAS SENTENCED TO FOUR MONTHS IN PRISON AND FINED 30000 FOR HIS ROLE IN THE 1991 TREASURY AUCTION BIDDING SCANDAL THAT ROILED THE INVESTMENT BANK EMPHASIZING THE NEED TO DETER FUTURE FINANCIAL CRIMES JUDGE PIERRE N LEVAL SAID IN US DISTRICT COURT IT WAS IMPORTANT THAT THE 38YEAROLD FORMER TRADER SPEND TIME IN PRISON THIS MUST NOT BE SEEN BY THE WORLD AS SOMETHING THE WORLD DOESN'T CARE ABOUT JUDGE LEVAL ADDED UNDER A PLEA AGREEMENT IN WHICH HE ADMITTED TO TWO COUNTS OF LYING TO TREASURY OFFICIALS MR MOZER HAD FACED A MAXIMUM OF 10 YEARS IN PRISON AND 500000 IN FINES ACKNOWLEDGING MR MOZER'S EXTENSIVE COOPERATION WITH THE GOVERNMENT JUDGE LEVAL ALSO RECOMMENDED THAT THE SENTENCE BE SERVED IN A MINIMUMSECURITY FACILITY BOTH THE US ATTORNEY'S OFFICE AND MR MOZER'S LAWYERS HAD AGREED THAT UNDER SENTENCING GUIDELINES MR MOZER SHOULD SERVE NO MORE THAN 16 MONTHS FOR HIS OFFENSE THE GOVERNMENT SAID MR MOZER'S HELP HAD BEEN SUBSTANTIAL IN PROVIDING INFORMATION ON TREASURY AUCTION MISCONDUCT AND TAXMOTIVATED SHAM TRADING MR MOZER'S RELATIVELY LIGHT SENTENCE HOWEVER SURPRISED WALL STREET EXECUTIVES SALOMON HAD PAINTED MR MOZER AS A LONE COWBOY WHO ACTED ON HIS OWN IN MAKING EXCESSIVE BIDS IN TREASURYNOTE AUCTIONS AND GOVERNMENT REGULATORS FOUND NO EVIDENCE OF WIDESPREAD WRONGDOING BY OTHER SALOMON TRADERS SALOMON BROTHERS IS A UNIT OF SALOMON INC STANLEY ARKIN MR MOZER'S LEAD ATTORNEY SAID HE WOULDN'T APPEAL THE SENTENCE AS PART OF THE PLEA AGREEMENT MR MOZER PREVIOUSLY AGREED TO PUT 500000 IN ESCROW TO COVER FUTURE ASSESSMENTS BY THE SECURITIES AND EXCHANGE COMMISSION AND OTHERS IN CONNECTION WITH THE SCANDAL SINCE NEWS OF THE SCANDAL BROKE MR MOZER HAS BEEN AT ITS VORTEX THE FORMER SALOMON MANAGING DIRECTOR WAS FIRED BY THE FIRM IN AUGUST 1991 AFTER AN INTERNAL INVESTIGATION FOUND THAT IN A FEBRUARY 1991 TREASURY AUCTION HE PLACED BIDS IN THE NAMES OF SALOMON CLIENTS ALTHOUGH THE BIDS ACTUALLY WERE FOR SALOMON ITSELF THE SUBTERFUGE WHICH WAS ACCOMPLISHED WITHOUT THE CLIENTS' KNOWLEDGE ENABLED THE INVESTMENT BANK TO PURCHASE MORE THAN 35 OF THE NOTES AUCTIONED IN VIOLATION OF A TREASURY DEPARTMENT RULE RESTRICTING EACH BIDDER TO 35 OF AN ISSUE SALOMON ACTUALLY CONTROLLED ABOUT 57 OF THE AUCTION IT WAS LATER DETERMINED THE ENSUING GOVERNMENT INVESTIGATION AND OPPROBRIUM LED TO A SHAKEUP AT SALOMON THE COMPANY EVENTUALLY PAID 290 MILLION IN FINES TO SETTLE SEC ALLEGATIONS THAT IT HAD VIOLATED GOVERNMENT RULES IN NINE TREASURY AUCTIONS AND THREE OF THE NEW YORK INVESTMENT BANK'S TOP EXECUTIVES CHAIRMAN JOHN GUTFREUND PRESIDENT THOMAS STRAUSS AND VICE CHAIRMAN JOHN MERIWETHER WERE FORCED TO RESIGN AND REACHED INDIVIDUAL SETTLEMENTS WITH THE SEC THE COMMISSION HAD ACCUSED THE THREE MEN OF FAILING TO SUPERVISE PROPERLY ALLEGING THAT THEY KNEW OF THE BIDDING PRACTICE FOR SEVERAL MONTHS BEFORE TAKING ACTION CURRENT AND FORMER SALOMON EXECUTIVES WERE CRITICAL OF THE FOURMONTH SENTENCE MR MOZER'S ACTIONS NEARLY WIPED THE INVESTMENT BANK OUT OF BUSINESS THE EXECUTIVES SAID AND LED TO HUNDREDS OF LAYOFFS AS THE FIRM PARED BACK ITS OPERATIONS IN THE WAKE OF THE SCANDAL IT'S REPUGNANT SAID A FORMER SENIOR SALOMON EXECUTIVE WHO ASKED NOT TO BE IDENTIFIED THIS GUY BROUGHT THE FIRM TO ITS KNEES AND CHANGED THE LIVES OF PEOPLE WHO WERE UNINVOLVED MR MOZER WHO HAS MAINTAINED THAT HE WAS UNFAIRLY MADE A SCAPEGOAT STILL FACES AN SEC CIVIL SUIT FILED LATE LAST YEAR AND THE POSSIBILITY OF A RELATED ANTITRUST PROSECUTION SOME SECURITIES LAWYERS SAID THE SENTENCE ALTHOUGH LIGHT WOULD HAVE SOME DETERRENT EFFECT HARVEY PITT A NEW YORK SECURITIES LAWYER SAID THE SENTENCE REFLECTED THE LACK OF CLEAR VICTIMS AS WELL AS MR MOZER'S COOPERATION THE ULTIMATE MESSAGE HERE IS THAT EVEN WHERE THERE MAY BE DIFFICULTY IN FINDING VICTIMS AND EVEN WHERE THE GOVERNMENT STRONGLY URGES LENIENCY YOU STILL RUN THE RISK OF BEING INCARCERATED MR PITT SAID MAYBE THE COWBOY DODGED A REAL BULLET BUT HE STILL GOT NICKED 9312150063 931215 WALLMAN SEEMS LIKELY NOMINEE FOR SEC POST BY CHRISTI HARLAN AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON SECURITIES LAWYER STEVEN WALLMAN IS THE LIKELY NOMINEE FOR THE FOURTH COMMISSIONER'S SEAT AT THE SECURITIES AND EXCHANGE COMMISSION ACCORDING TO CLINTON ADMINISTRATION OFFICIALS A PARTNER IN THE WASHINGTON LAW FIRM OF COVINGTON & BURLING MR WALLMAN WOULD FILL THE COMMISSION SEAT LEFT VACANT 21 MONTHS AGO WITH THE RESIGNATION OF EDWARD FLEISHMAN ALSO A SECURITIES LAWYER THE SEC HAS FOUR COMMISSIONERS AND A CHAIRMAN ALL REQUIRE SENATE CONFIRMATION MR WALLMAN'S NOMINATION ALSO WOULD HELP THE WHITE HOUSE AVOID A LOGJAM OVER TWO OTHER POTENTIAL SEC CANDIDATES SENATE BANKING COMMITTEE STAFFER MARTI COCHRAN AND FORMER MARYLAND SECURITIES COMMISSIONER ELLYN BROWN MS COCHRAN WAS BACKED FOR THE SEC POST BY SEN CHRISTOPHER DODD D CONN AND MS BROWN HAD THE SUPPORT OF SEN BARBARA MIKULSKI D MD NEITHER SENATOR WAS SAID TO BE WILLING TO BUDGE IN CONTRAST MR WALLMAN HAS A BROAD AND VARIED COALITION OF SUPPORTERS MOST OF WHOM ARE OUTSIDE OF CONGRESS CORPORATE INTERESTS ARE ON THE LIST OF COURSE BUT SO ARE ORGANIZED LABOR AND INSTITUTIONAL INVESTORS TWO GROUPS THAT WERE SHARPLY OPPOSED TO SOME OF MR WALLMAN'S WORK PARTICULARLY HIS DRAFTING OF A 1990 CORPORATE ANTITAKEOVER LAW IN PENNSYLVANIA THE LAW'S PROVISIONS WERE SEEN AS HARMFUL TO THE INTERESTS OF SHAREHOLDERS INCLUDING INSTITUTIONS AND LABOR UNIONS WHEN I FIRST DEALT WITH WALLMAN I ASSUMED HE WAS THE DEVIL INCARNATE SAID SARAH TESLIK EXECUTIVE DIRECTOR OF THE COUNCIL OF INSTITUTIONAL INVESTORS IT WAS UNFAIR TO HIM ALTHOUGH THE COUNCIL DOESN'T MAKE ENDORSEMENTS MS TESLIK IS NOW A FAN OF MR WALLMAN AS IS NELL MINOW A PRINCIPAL OF LENS INC AN ACTIVIST INVESTMENT PARTNERSHIP MS MINOW WHO ALSO OPPOSED MR WALLMAN FOR HIS WORK IN PENNSYLVANIA CALLED THE LIKELY NOMINATION TERRIFIC NEWS MR WALLMAN WHO COUNTS THE NATIONAL FOOTBALL LEAGUE AMONG HIS CORPORATE CLIENTS WAS RECENTLY RETAINED TO REPRESENT THE BUSINESS ROUNDTABLE A COALITION OF COMPANIES THAT HISTORICALLY HAS OPPOSED SHAREHOLDER ACTIVISTS THE ROUNDTABLE HAS MELLOWED RECENTLY AND PART OF THAT HAS BEEN STEVE SAID RICH KOPPES GENERAL COUNSEL FOR THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM HE HELPED MOVE THE BUSINESS ROUNDTABLE MODE MR WALLMAN 40 YEARS OLD DECLINED TO COMMENT A GRADUATE OF THE COLUMBIA UNIVERSITY LAW SCHOOL HE HAS SPENT HIS ENTIRE LAW CAREER WITH COVINGTON & BURLING HE HOLDS BACHELOR'S AND MASTER'S DEGREES FROM THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY 9312150062 931215 BUSINESS BRIEF AB VOLVO MEETING IS SET FOR JAN 19 TO CHOOSE A NEW BOARD SWEDISH AUTOMOTIVE GROUP AB VOLVO WILL HOLD AN EXTRAORDINARY GENERAL MEETING ON JAN 19 THE BOARD ANNOUNCED A NEW BOARD OF DIRECTORS WILL BE ELECTED AT THE MEETING VOLVO SAID IN A THREELINE STATEMENT VOLVO CHAIRMAN PEHR GYLLENHAMMAR AND FOUR OTHER BOARD MEMBERS RESIGNED ON DEC 2 AFTER THE COLLAPSE OF A PROPOSAL TO MERGE VOLVO'S VEHICLE OPERATIONS WITH THOSE OF FRANCE'S RENAULT SA THE REMAINING BOARD MEMBERS PLACED THEIR SEATS AT THE DISPOSAL OF SHAREHOLDERS BUT THEY OFFICIALLY REMAIN IN PLACE UNTIL THE JAN 19 MEETING 9312150061 931215 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 7/8 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 322 30 TO 44 DAYS 320 45 TO 119 DAYS 326 120 TO 149 DAYS 328 150 TO 179 DAYS 330 180 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 335 30 DAYS 334 60 DAYS 335 90 DAYS CERTIFICATES OF DEPOSIT 261 ONE MONTH 266 TWO MONTHS 271 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 330 ONE MONTH 332 THREE MONTHS 335 SIX MONTHS BANKERS ACCEPTANCES 319 30 DAYS 318 60 DAYS 318 90 DAYS 322 120 DAYS 323 150 DAYS 324 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 5/16 3 3/16 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 5/16 ONE MONTH 3 3/8 THREE MONTHS 3 1/2 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 608 JAPAN 3 SWITZERLAND 750 BRITAIN 6 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 713 60 DAYS 721 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 711 60 DAYS 721 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 9312150060 931215 BUSINESS BRIEF COLT'S MANUFACTURING CO REORGANIZATION IS DELAYED BY DEPARTURE OF INVESTOR COLT'S MANUFACTURING CO'S PLANS TO EMERGE FROM BANKRUPTCY PROCEEDINGS WERE SET BACK BY THE ABRUPT DEPARTURE MONDAY OF ITS MAIN PROSPECTIVE INVESTOR INTERLAKEN INVESTMENT PARTNERS INTERLAKEN A GREENWICH CONN PARTNERSHIP THAT WAS TO INJECT 32 MILLION INTO COLT'S FOR AN 85 STAKE IN THE HARTFORD CONN COMPANY PULLED OUT OF THE REORGANIZATION PLAN A DAY BEFORE IT WAS TO GO BEFORE A FEDERAL BANKRUPTCY COURT FOR APPROVAL THE STRUGGLING GUN MAKER HAS OPERATED UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE SINCE MARCH INTERLAKEN SAID ANIMOSITY AND ANTAGONISTIC BEHAVIOR OF MANY OF THE VARIOUS PARTIES IN THE REORGANIZATION CAUSED IT TO DROP OUT THERE CERTAINLY HAS BEEN A LOT OF ANIMOSITY REGARDING THIS BANKRUPTCY SAID JOHN WEBBER GENERAL COUNSEL AT COLT'S BUT WE CERTAINLY SAW A LIGHT AT THE END OF THE TUNNEL 9312150059 931215 WHO'S NEWS PRIMERICA FORMS UNIT TO BE HEADED BY AC ECKERT III BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ALFRED C ECKERT III WHO MADE HIS NAME ON WALL STREET AS HEAD OF GOLDMAN SACHS & CO'S CONTROVERSIAL JUNKBOND VULTURE FUND IS JOINING PRIMERICA CORP TO HEAD A BIG NEW INVESTMENT UNIT THE UNIT GREENWICH STREET CAPITAL PARTNERS INC IS SEEKING TO RAISE SEVERAL HUNDRED MILLION DOLLARS ONETHIRD OF ITS CAPITALIZATION ACCORDING TO PRIMERICA WILL BE INVESTED IN EMERGING MARKETS PARTICULARLY CHINA THE REMAINDER WILL BE INVESTED IN RECAPITALIZATIONS AND BRIDGEEQUITY SITUATIONS THE GREENWICH UNIT WILL REPORT TO ROBERT F GREENHILL CHAIRMAN AND CHIEF EXECUTIVE OF PRIMERICA'S SMITH BARNEY SHEARSON SUBSIDIDARY BUT GREENWICH WILL BE A PRIMERICA UNIT NOT A FUND ASSOCIATED WITH SMITH BARNEY SHEARSON WHICH IS KNOWN MORE FOR ITS RETAIL OPERATIONS MR ECKERT WAS COHEAD OF MERCHANT BANKING AT GOLDMAN SACHS UNTIL JULY 1991 WHEN HE LEFT TO START GREYCLIFF PARTNERS WHICH INVESTS IN DISTRESSED SECURITIES MR ECKERT 45 YEARS OLD WILL CONTINUE AS A PARTNER OF GREYCLIFF AT GOLDMAN HE HEADED ITS JUNKBOND VULTURE FUND THE WATER STREET FUND THE FUND ONE OF THE LARGEST OF ITS KINDBOUGHT JUNK BONDS OF TROUBLED COMPANIES AT DEPRESSED PRICES AND THEN SOUGHT A RESTRUCTURING OF THE COMPANIES' DEBTS TO INCREASE THE BONDS' VALUE GOLDMAN UNWOUND THE FUND IN THE SPRING OF 1991 AFTER CLIENTS COMPLAINED THAT THE FUND HAD AN UNFAIR ADVANTAGE IN MAKING SUCH INVESTMENTS BECAUSE IT HAD A WEALTH OF CONFIDENTIAL INFORMATION FROM GOLDMAN'S INVESTMENTBANKING CLIENTS MR ECKERT'S HIRING AND THE ESTABLISHMENT OF A NEW UNIT IS AN EXPANSIVE AND SURPRISING MOVE FOR PRIMERICA WHICH THIS YEAR UNDER THE CHAIRMANSHIP OF SANDY WEILL HAS ALREADY PURCHASED SHEARSON AND MERGED WITH INSURER TRAVELERS CORP PRIMERICA WILL BE RENAMED TRAVELERS INC AT YEAR END MR GREENHILL SAID THE GREENWICH FUND EXPECTS TO RAISE A SIGNIFICANT AMOUNT OF MONEY PRIVATELY FROM INVESTORS SUCH AS INSURANCE COMPANIES FOUNDATIONS AND WEALTHY FAMILIES WORLDWIDE HE SAID SMITH BARNEY ALREADY HAS A DOZEN PEOPLE OVERSEAS IN ITS CHINA INVESTMENT BANKING OFFICE AND EXPECTS TO DOUBLE THE NUMBER SOON 9312150057 931215 BUSINESS BRIEF SHELDAHL INC PLAN TO PURCHASE DATAKEY FAILS AS SHAREHOLDER BALKS SHELDAHL INC'S PREVIOUSLY ANNOUNCED PLAN TO ACQUIRE DATAKEY INC FOR STOCK CURRENTLY VALUED AT ABOUT 145 MILLION FELL THROUGH AFTER A BIG DATAKEY HOLDER RESISTED THE MOVE IN OCTOBER SHELDAHL A NORTHFIELD MINN MAKER OF LAMINATES AND ELECTRONIC MATERIALS AND COMPONENTS AGREED TO ACQUIRE TINY DATAKAY A BURNSVILLE MINN MAKER OF DATACARRYING KEYS AND CARDS THE AGREEMENT REQUIRED AMONG OTHER THINGS APPROVAL FROM DATAKEY'S SHAREHOLDERS THE COMPANY'S BIGGEST SHAREHOLDER INDICATED THAT IT WOULDN'T VOTE IN FAVOR OF THE MERGER THE TWO COMPANIES SAID YESTERDAY AND THEIR BOARDS HAVE AGREED THAT THEY WILL NOT PURSUE THE MERGER DISCLOSURE OF THE PLAN'S FAILURE CAME AFTER THE MARKET'S CLOSE ON THE NASDAQ STOCK MARKET YESTERDAY SHELDAHL SHARES SLIPPED 1 TO 1025 WHILE DATAKEY SHARES INCHED UP 625 CENTS TO 44375 9312150056 931215 WORLD MARKETS EUROPEAN STOCKS HURT IN AFTERMATH OF ELECTION OF HARDLINERS IN RUSSIA TOKYO PRICES EASE A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARES FELL YESTERDAY ERASING AN EARLY JUMP IN REACTION TO DECLINES IN THE US AND CONTINENTAL EUROPEAN MARKETS STOCKS IN FRANKFURT AND SEVERAL OTHER BOURSES DROPPED ON ANXIETY ABOUT NATIONALISTS' SUCCESS IN RUSSIAN ELECTIONS AND ALARMING REMARKS BY A HARDLINE POLITICIAN TOKYO PRICES EASED TUESDAY IN THIN TRADING AS INVESTORS AWAITED FURTHER SIGNALS OF ANY JAPANESE GOVERNMENT MOVES TO STIMULATE THE ECONOMY NEGOTIATIONS ON A WORLD TRADE TREATY ALSO CONTINUED TO BE A SUBTEXT AFFECTING STOCKS WORLDWIDE WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10965 DOWN 085 REFLECTING LOWER MARKETS IN ALL REGIONS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 22222 UP 1128 OR 54 WITH BATU KAWAN OF MALAYSIA POSTING A 45 GAIN IN ITS LOCAL CURRENCY HEALTHCARE STOCKS TRAILED AT 13778 DOWN 312 OR 22 WITH CAREMARK INTERNATIONAL OF THE US SLIDING 38 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 62 POINTS TO 32484 THE FT 30STOCK INDEX DROPPED 60 POINTS TO 24473 VOLUME WAS 7054 MILLION SHARES COMPARED WITH 6536 MILLION SHARES A DAY EARLIER THE FT 100 CLIMBED 23 POINTS SHORTLY AFTER THE OPENING BUT GIVEN A LACK OF MARKETMOVING NEWS THE MARKET TOOK ITS CUE FROS THE PARIS AND FRANKFURT MARKETS ENDED SHARPLY LOWER ON GROWING CONCERN ABOUT POLITICAL DEVELOPMENTS IN RUSSIA FOLLOWING VICTORIES BY HARDLINERS IN SUNDAY'S PARLIAMENTARY ELECTIONS A WEAK OPENING ON WALL STREET ALSO DAMPED ENTHUSIASM THE LONDON DOWNTURN ALSO WAS ATTRIBUTED TO SOME POSITIONING OF PORTFOLIOS BEFORE THE GERMAN CENTRAL BANK'S POLICYMAKING COUNCIL MEETING TOMORROW FOLLOWING SPECULATION ABOUT A POSSIBLE GERMAN BUNDESBANK REDUCTION IN KEY INTEREST RATES SOME LONDON INVESTORS CHANGED THEIR MINDS AND BET THAT GERMAN RATES WOULDN'T BE CHANGED AND THUS BEGAN TAKING PROFITS ON STOCKS IN FRANKFURT THE DAX 30STOCK INDEX LOST 2278 POINTS OR 1 TO 214997 NEAR THE INTRADAY LOW OF 214701 THE IMPLICATIONS OF THE ELECTION SETBACK FOR RUSSIA'S REFORMERS SANK SLOWLY INTO THE GERMAN MARKET WHICH IS SENSITIVE TO ANY BAD NEWS ABOUT NEIGHBORING EASTERN EUROPE VOLUME THINNED AS FOREIGN INVESTORS WEREN'T ACTIVE THE MARKET ALSO WAS ANTICIPATING THE GERMAN CENTRAL BANK MEETING ON MONETARY POLICY THOUGH A RATE CUT WASN'T CONSIDERED LIKELY IN PARIS PROFITTAKING AHEAD OF AN EXPECTED GLOBAL LIBERALIZATION AGREEMENT UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND NERVOUSNESS ABOUT INFLAMMATORY STATEMENTS BY THE RUSSIAN ULTRANATIONALIST POLITICIAN VLADIMIR ZHIRINOVSKY SENT FRENCH STOCKS INTO A TAILSPIN AND THE MAIN INDEX SANK 18 MR ZHIRINOVSKY PREDICTED HE WOULD BE ELECTED PRESIDENT IN RUSSIA'S NEXT ELECTIONS AND WAS QUOTED IN A 1991 INTERVIEW AS HAVING THREATENED GERMANY WITH NUCLEAR ATTACK IF IT CONTINUED TO MEDDLE IN RUSSIAN AFFAIRS THE COMMENTS ALSO SENT MADRID ZURICH AND STOCKHOLM SHARE PRICES SHARPLY LOWER WIPING OUT EARLY GAINS ON ALL THREE BOURSES IN AMSTERDAM EQUITIES FELL IN LISTLESS TRADING IN ANTICIPATION OF THE GERMAN BUNDESBANK MEETING IN MEXICO CITY EVEN AFTER A LATE RALLY BROUGHT PRICES UP FROM LOWS STOCKS PLUNGED 19 ON A WAVE OF PROFITTAKING LEAVING THE MARKET UP 35 FOR THIS YEAR POSITIONS WERE REVALUATED AFTER CONCERNS ABOUT MEXICAN ECONOMIC GROWTH RESURFACED WHEN THE GOVERNMENT REPORTED A 12 ECONOMIC CONTRACTION IN THE THIRD QUARTER SUGGESTING THE GOAL OF 11 FULLYEAR GROWTH MAY BE OUT OF REACH IN TOKYO THE NIKKEI 225STOCK INDEX WHICH GAINED 6990 POINTS MONDAY FELL 1860 POINTS TO 1730873 ON WEDNESDAY THE NIKKEI INDEX ROSE 3910 POINTS TO CLOSE THE MORNING SESSION AT 1734783 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 200 MILLION SHARES DOWN FROM 221 MILLION SHARES A DAY EARLIER DECLINERS OUTNUMBERED GAINERS 565391 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 543 POINTS MONDAY DROPPED 1113 TO 145101 TRADING WAS LACKLUSTER AMID A LACK OF NEWS ON JAPAN'S INTENTIONS ABOUT QUICK IMPLEMENTATION OF ECONOMIC STIMULUS MEASURES THE GOVERNMENT'S DECISION EARLY TUESDAY ON A PARTIAL OPENING OF ITS RICE MARKET AS A CONCESSION IN GLOBAL TRADE NEGOTIATIONS LENT SOME SUPPORT TO WAREHOUSING STOCKS WHICH COULD GET A BOOST IN BUSINESS FROM LOWER TRADE BARRIERS UNDER GATT THE RICE COMPROMISE WHICH HAD BEEN EXPECTED DIDN'T SPUR ANY ACTION IN A STOCK MARKET MORE CONCERNED WITH THE OUTCOME OF GATT TALKS A STATEMENT BY JAPAN'S FINANCE MINISTER THAT THE GOVERNMENT'S TOP PRIORITY REMAINED PASSING A SUPPLEMENTARY BUDGET PLAN TO BE FOLLOWED BY STIMULUS MEASURES DIDN'T ADD ANYTHING NEW TO MARKET SENTIMENT STOCK PRICES GAINED IN EARLY TRADING DROPPED STEADILY BEFORE STEADYING IN THE AFTERNOON THEN JUMPED IN THE LAST HALFHOUR BECAUSE OF ARBITRAGERELATED ACTIVITY IN SYDNEY STOCKS OPENED STRONGLY BUT LOST STEAM AND ENDED MODERATELY LOWER PULLED DOWN BY CONCERNS ABOUT HOW THE GATT TALKS WOULD BE RESOLVED AND BY A TURNAROUND IN STOCKINDEX FUTURES PRICES IN HONG KONG SHARES SLUMPED 22 ON PROFITTAKING THE DIVE BROKE THE MARKET'S STREAK OF FIVE RECORD HIGHS PARTICIPANTS DISMISSED ANY POLITICAL WORRIES ON THE EVE OF INTRODUCTION OF A CONSTITUTIONAL REFORM BILL IN THE BRITISH COLONY'S LEGISLATURE THE ELECTORAL ARRANGEMENT FOR 199495 HAS BEEN AT THE HEART OF A BITTER SINOBRITISH DISPUTE IN SINGAPORE PRICES FINISHED MIXED BUT THE MARKET'S KEY INDEX ROSE TO ANOTHER RECORD HIGH AFTER A WAVE OF LATE BUYING DEALINGS WERE FEATURELESS WITH PROFITTAKING EMERGING EARLY BUT SENTIMENT REMAINED STRONG HELPING TO USHER IN BUYING TO ABSORB THE SMALL LOSSES IN TAIPEI SHARES SURGED 35 GAINING FOR THE THIRD CONSECUTIVE SESSION WHILE VOLUME PEAKED AT THE HIGHEST LEVEL SINCE APRIL 29 1991 AS THE MARKET REMAINED UPBEAT EXPECTING A FURTHER INFLUX OF OVERSEAS FUNDS GAINS WERE BROADLY BASED LED BY A 67 SURGE BY THE FINANCIAL SECTOR AND THEY TOOK THE MAIN INDEX UP 99 SINCE LAST SATURDAY IN MANILA STOCKS POSTED GAINS TO REACH ANOTHER RECORD DESPITE PROFITTAKING THAT SWAMPED THE MARKET AT MIDSESSION AND IN SEOUL PRICES ROSE REBOUNDING FROM SHARP DROPS IN THE PREVIOUS SESSION THOUGH TURNOVER SHRANK BUYING FOCUSED ON BLUECHIP MANUFACTURERS 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 9312150055 931215 WORLD TRADE TALKS TRADE ACCEPTANCE AFTER YEARS OF TALKS GATT IS AT LAST READY TO SIGN OFF ON A PACT IT WOULD SHARPLY CUT TARIFFS BUT WOULDN'T PRY OPEN SOME IMPORTANT MARKETS NO HOORAY FROM HOLLYWOOD BY BOB DAVIS AND LAWRENCE INGRASSIA STAFF REPORTERS OF THE WALL STREET JOURNAL GENEVA TO PREVENT SEVEN YEARS OF TALKING THREATENING AND CAJOLING FROM COLLAPSING THE US AND EUROPE WITHDREW ON SEVERAL FRONTS AND DECLARED VICTORY IN THE MARATHON GATT NEGOTIATIONS IN SOME AREAS THE US AND EUROPEAN COMMUNITY EACH BACKED DOWN IN OTHERS THEY SIMPLY SIDESTEPPED DISPUTES THAT LOOKED INTRACTABLE BUT IN THE END THIS TRANSATLANTIC SPIRIT OF COMPROMISE AND RETREAT PAVED THE WAY FOR 115 MEMBERS OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE TO SIGN OFF ON A GLOBAL TRADE DEAL TODAY THE RESULT IS AN ACCORD THAT WOULD SHARPLY REDUCE AVERAGE TARIFFS WORLDWIDE BUT THAT WOULDN'T ACHIEVE A BROAD OPENING OF WORLD MARKETS TO THE SERVICE SECTOR THAT HAD BEEN A CENTRAL US GOAL WHEN THE GATT TALKS WERE LAUNCHED IN PUNTA DEL ESTE URUGUAY IN 1986 THE OUTCOME WAS A BITTER DISAPPOINTMENT TO HOLLYWOOD WHICH MOUNTED AN UNSUCCESSFUL DRIVE TO ABOLISH EUROPEAN QUOTAS LIMITING THE NUMBER OF USPRODUCED MOVIES AND SHOWS THAT AIR ON EUROPEAN TELEVISION US BANKS AND SECURITIES FIRMS WHICH HAD HOPED THE TRADE TALKS WOULD OPEN FASTGROWING MARKETS IN ASIA WILL HAVE TO NEGOTIATE FURTHER TO ACHIEVE ANY GAINS THERE EFFORTS TO WHITTLE DOWN EUROPEAN AIRCRAFT SUBSIDIES ALSO STALLED REQUIRING FUTURE JAWBONING TO SETTLE THAT DISPUTE MEANWHILE HEAVILY SUBSIDIZED FRENCH FARMERS FACE PAINFUL CUTS THE VARIOUS COMPROMISES BREAKTHROUGHS AND DODGES FOLLOWED 25 HOURS OF WRANGLING BETWEEN US TRADE NEGOTIATOR MICKEY KANTOR AND SIR LEON BRITTAN THE EC'S TRADE MINISTER HOLED UP IN THE US TRADE MISSION HEADQUARTERS HERE THE TWO WRESTLED THROUGH THE ISSUES THAT HAVE SPLIT THE US AND EUROPE FOR MONTHS AT 6 AM GENEVA TIME MR KANTOR TELEPHONED PRESIDENT CLINTON TO REVIEW THE SITUATION WHILE SIR LEON WAITED IN ANOTHER ROOM THE TALKS THEN CONTINUED FOR ANOTHER THREE HOURS WITH A BREAK FOR SHOWERS AND A CHANGE OF CLOTHES AT A MIDMORNING PRESS CONFERENCE THE TWO NEGOTIATORS APPEARED WRUNGOUT BUT RELIEVED MR KANTOR PRAISED HIS EUROPEAN COUNTERPART AS A MASTER DIPLOMAT SIR LEON CHARACTERIZED MR KANTOR AS A FRIEND BACK IN WASHINGTON THE WHITE HOUSE APPLAUDED THE NEAR COMPLETION OF THE GATT DEAL THE US ECONOMY IS POISED TO TAKE ADVANTAGE SAID LAURA TYSON CHAIRWOMAN OF THE COUNCIL OF ECONOMIC ADVISERS OTHERS WERE FAR FROM EFFUSIVE HOWEVER SAID JACK VALENTI PRESIDENT OF THE MOTION PICTURE ASSOCIATION OF AMERICA I FEEL VERY SAD SITTING IN HIS HOTEL ROOM AFTER BRIEFINGS WITH US NEGOTIATORS MR VALENTI ADDED THIS IS JUST PROTECTIONISM IT HAS NOTHING TO DO WITH PROTECTING CULTURE AS THE EC CONTENDS THE JAPANESE SAYING THEY MADE THE POLITICALLY UNPOPULAR DECISION TO PERMIT RICE IMPORTS EXPRESSED CONCERN THAT THE ACCORD WAS NARROWER THAN HAD BEEN HOPED DEVELOPING NATIONS COMPLAINED THAT THEY WERE GIVING UP TOO MUCH AND GETTING TOO LITTLE BUT THE FRENCH WHO HAD FOUGHT INCURSIONS FROM THE US ENTERTAINMENT INDUSTRY AS A THREAT TO LOCAL CULTURE WERE REJOICING THIS A GREAT AND BEAUTIFUL VICTORY FOR EUROPE SAID COMMUNICATIONS MINISTER ALAIN CARIGNON FOR ALL ITS SHORTCOMINGS THE PROPOSED AGREEMENT WHICH STILL MUST BE CLEARED BY CONGRESS AND RATIFIED BY THE OTHER NATIONS IS MUCH BETTER THAN THE ALTERNATIVE A FAILURE TO REACH AN ACCORD WOULD HAVE DEALT A PSYCHOLOGICAL BLOW TO THE WORLD'S ECONOMIES AT A TIME WHEN MANY ARE STRUGGLING TO RECOVER FROM RECESSION MOREOVER A BREAKDOWN WOULD HAVE LEFT WORLD TRADE VULNERABLE TO TITFORTAT QUARRELS THAT EVENTUALLY COULD HAVE SNARLED INTERNATIONAL COMMERCE NEGOTIATORS PLAYED UP WHAT HAS BEEN ACCOMPLISHED A DROP IN INDUSTRIAL TARIFFS AVERAGING ABOUT ONETHIRD NEW RULES DESIGNED TO GOVERN BOTH THE DUMPING OF GOODS AT UNFAIRLY LOW PRICES AS WELL AS RETALIATORY ACTIONS THAT COULD ESCALATE INTO A TRADE WAR AN AGREEMENT TO STRENGTHEN THE PROTECTION OF PATENTS AND AN ACCORD TO REDUCE AGRICULTURAL SUBSIDIES ALBEIT NOT AS MUCH AS FARMERS OUTSIDE OF EUROPE HAD HOPED IN ADDITION NEGOTIATORS AGREED TO FORM A MULTILATERAL TRADE ORGANIZATION WITH MORE POWER TO SETTLE TRADE DISPUTES THAN THE 46YEAROLD GENERAL AGREEMENT ON TARIFFS AND TRADE WHICH THE MTO WILL REPLACE THE ACCORD IS SCHEDULED TO BECOME EFFECTIVE JULY 1 1995 THE GATT PACT WILL BRING DOWN MORE BARRIERS FURTHER THAN ANY OTHER TRADE AGREEMENT IN HISTORY SAID MR KANTOR SIR LEON CALLED THE GATT DEAL THE LARGESTEVER LIBERALIZATION OF TRADE BUT WHILE THE COMPROMISES WERE INTENDED TO QUELL TRADE FRICTIONS THE DEAL LEAVES ROOM FOR FIGHTS TO ERUPT IN THE FUTURE FOR EXAMPLE THE FAILURE TO RESOLVE THE ENTERTAINMENT ISSUES MAY MEAN THAT THE US LATER THREATENS TO BRING SANCTIONS AGAINST EUROPE OVER THE FILM QUOTAS WHICH THE US STILL CONSIDERS UNFAIR THERE ALSO MAY BE A SURGE IN COMPLAINTS THAT COUNTRIES ARE DUMPING GOODS TO DATE THE BULK OF THESE CASES HAS BEEN BROUGHT BY THE US AND EC WHICH OFTEN CHARGE THAT DEVELOPING COUNTRIES HAVE TRIED TO FLOOD THEIR MARKETS WITH LOWPRICED GOODS RECENTLY HOWEVER OTHER COUNTRIES HAVE BROUGHT ANTIDUMPING CASES AND BY ESTABLISHING NEW RULES FOR THESE ACTIONS THE GATT ACCORD MAY ENCOURAGE EVEN MORE IT'S A TWOEDGE SWORD SAID LILIA BAUTISTA THE PHILIPPINES'S GATT NEGOTIATOR BECAUSE INDUSTRIALIZED NATIONS ARE BIG EXPORTERS AT THE MOMENT DEVELOPING COUNTRIES DON'T KNOW HOW TO USE ANTIDUMPING LAWS THEY ARE FOCUSING OUR ATTENTION ON IT NEVERTHELESS WITH ALL THE GATT MEMBERS IN AGREEMENT THE ACCORD STANDS A GOOD CHANCE OF WINNING APPROVAL BY CONGRESS ONLY BECAUSE THE US REMOVED SO MANY CONTROVERSIAL ITEMS LEAVING CRITICS WITH LESS TO ATTACK INDEED THE BIGGEST THREAT FACING GATT ON CAPITOL HILL IS THAT MANY INDUSTRIES WON'T BACK THE PACT ENTHUSIASTICALLY LEAVING THE STAGE TO OPPONENTS WHO WILL DECRY THE ACCORD FOR GIVING MORE POWER OVER TRADE TO INTERNATIONAL BUREAUCRATS THE SAME COALITION THAT ATTACKED THE NORTH AMERICAN FREE TRADE AGREEMENT A MIX OF LABOR CONSUMER ENVIRONMENTAL AND PEROT SUPPORTERS ALREADY IS GEARING UP FOR AN ATTACK ON GATT BUT INSTEAD OF PLAYING ON FEARS OF JOB LOSS TO MEXICO THEY WILL TRY TO EXPLOIT CONCERN THAT THE FACELESS BUREAUCRATS AT THE NEW MULTILATERAL TRADE ORGANIZATION WILL RIDE ROUGHSHOD OVER THE US CONGRESS'S SCHEDULE ALSO MAY WORK AGAINST GATT WITH THE CLINTON ADMINISTRATION TIED UP ON HEALTH CARE WELFARE REFORM AND CRIME LEGISLATION A VOTE ON THE ACCORD MAY BE PUT OFF UNTIL THE FALL OR EVEN EARLY 1995 THAT WOULD GIVE OPPONENTS TIME TO MAKE GATT AN ELECTION ISSUE AS NAFTA WAS THE QUESTION IS WILL CLINTON MAKE THE SAME MISTAKE TWICE' WONDERS GARY HUFBAUER A TRADE ECONOMIST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS IN WASHINGTON THE BRUNT OF PUSHING A GATT PACT WILL CLEARLY FALL TO MANUFACTURERS WHO BENEFIT MOST FROM TARIFF REDUCTIONS YOU'LL HAVE A LOT OF COMPANIES DOING A LOT TO GET THIS PASSED SAYS DEAN DORT WASHINGTON COUNSEL FOR DEERE & CO THE BIG FARMEQUIPMENT MAKER THE HANDSDOWN WINNERS FROM YESTERDAY'S AGREEMENT ARE A BROAD SWATH OF INDUSTRIES THAT WILL SEE THEIR TARIFFS PLUMMET OR IN MANY CASES DISAPPEAR BIG EQUIPMENT MAKERS SUCH AS DEERE AND CATERPILLAR INC WERE EXULTANT AND US RETAILERS SHOULD GET A BOOST AS A RESULT OF REDUCED PRICES FOR TEXTILES AND APPAREL WHERE TARIFFS WILL BE CUT BY ABOUT ONEFOURTH OVER A NUMBER OF YEARS ROBERT HALL VICE PRESIDENT OF GOVERNMENT AFFAIRS AT THE NATIONAL RETAIL FEDERATION SAYS THE REDUCTIONS REMOVE AN ADDED TAX RETAILERS PAY FOR GOODS THEY IMPORT FINALLY AS TARIFFS FALL DOZENS OF MANUFACTURERS WILL BE POSITIONED TO GAIN MARKET SHARE THROUGH LOWER PRICES OR TO INCREASE PROFITS ON FOREIGN SALES ANN GUST VICE PRESIDENT AND GENERAL COUNSEL OF GAP INC PREDICTED THAT THE AGREEMENT WILL HELP STOP IMPORT PROBLEMS THE COMPANY HAS HAD BRINGING IN HANDKNIT SWEATERS AND MEN'S SHIRTS WHICH HAVE BEEN SUBJECT TO RESTRICTIONS RETAILERS HAVE HAD A VERY DIFFICULT TIME OF IT THE US CANADA JAPAN AND EUROPE WHICH ACCOUNT FOR THREEQUARTERS OF WORLD TRADE HAVE AGREED TO END TARIFFS IN PHARMACEUTICALS CONSTRUCTION AGRICULTURAL EQUIPMENT SCOTCH AND OTHER WHISKEYS FURNITURE PAPER STEEL AND MEDICAL EQUIPMENT THE BIG INDUSTRIAL STATES HAVE BEEN PRESSING OTHER GATT MEMBERS TO GO ALONG WITH THE TARIFF ELIMINATION BUT AS OF YESTERDAY IT WASN'T CLEAR HOW MANY WOULD NEGOTIATIONS OVER TARIFF CUTS WERE CONTINUING WELL INTO LAST NIGHT PROMPTING GATT OFFICIALS TO MISS DINNERS AND RESCHEDULE MEETINGS THE SNAGS AREN'T EXPECTED TO UNRAVEL THE DEAL BUT THEY HIGHLIGHT THE TOUGH NEGOTIATING THAT REMAINS UNTIL TODAY'S SESSION IS GAVELED TO AN END THE US AND EC WERE CONTINUING TO PRESS JAPAN TO END ITS TARIFFS ON WOOD PRODUCTS AND TO PRESS BRAZIL AND OTHER DEVELOPING COUNTRIES TO REDUCE TARIFFS ON CHEMICALS CURRENTLY JAPAN DOESN'T ASSESS TARIFFS ON RAW LOGS BUT IMPOSES LEVIES AS HIGH AS 20 ON PLYWOOD AND MOLDING THE RESULT JAPAN PROTECTS ITS WOODPROCESSING COMPANIES FROM OVERSEAS COMPETITION WHILE IT IMPORTS RAW MATERIALS WITHOUT RESTRICTION THE JAPANESE POSITION IS INDEFENSIBLE SAYS LYN WITHEY DIRECTOR OF FEDERAL AFFAIRS AT INTERNATIONAL PAPER CO TARIFFS ALSO ARE EXPECTED TO PLUNGE ON SCIENTIFIC INSTRUMENTS ALUMINUM AND TOYS THOMAS F ST MAXENS A TRADE CONSULTANT FOR MATTEL INC CHEERED THE OUTCOME SANTA CLAUS HAS BEEN ONE OF THE URUGUAY ROUND'S BIG WINNERS HE SAID THE GATT DEAL WOULD PHASE OUT 12 DUTIES ON IMPORTED TOYS OVER 10 YEARS THE CLEAREST LOSER IN THE GATT PACT IS HOLLYWOOD WHICH MAY HAVE HAD THE HIGHEST HOPES THE MOTIONPICTURE INDUSTRY WANTED TO USE THE LEVERAGE OF THE GATT TALKS TO PERSUADE EUROPE PARTICULARLY FRANCE TO MODIFY ITS BROADCAST QUOTAS ON US PROGRAMMING AND TO SHARE THE REVENUE FROM LEVIES ON US FILMS THE EC OFFERED ESSENTIALLY THE STATUS QUO AND ONLY DISCUSSIONS OVER SPLITTING THE LEVIES AT 4 AM TUESDAY AFTER NEGOTIATING FOR ABOUT 20 HOURS MR KANTOR THE US TRADE REPRESENTATIVE DECIDED THAT THE US WAS BETTER OFF KEEPING MOVIES OUT OF ANY GATT ACCORD THUS PRESERVING THE US RIGHT TO RETALIATE AGAINST THE EC LATER FOR UNFAIR TRADE PRACTICES EUROPEANS RETORT THAT HOLLYWOOD WITH MORE THAN TWOTHIRDS OF THE MOVIE MARKET IN EUROPE WOULD HAVE A HARD TIME PROVING THAT IT IS BEING HURT THE MOVIES HAVE BECOME GENEVA'S LONGESTRUNNING MELODRAMA MR KANTOR SAYS THE EC OFFER WOULD HAVE ENSHRINED THE PRINCIPLE OF LIMITING A VIEWER'S RIGHT TO SEE WHAT HE OR SHE WISHES TO SEE FRANCE ACCUSES THE US OF CULTURAL IMPERIALISM BUT AS WITH ALL TRADE ISSUES THE BOTTOM LINE IS MONEY US FILM STUDIOS FEAR THAT EUROPE WILL RESTRICT CABLE SATELLITE AND OTHER NEW TECHNOLOGIES THUS LIMITING FUTURE REVENUE BY AGREEING TO DISAGREE IN GENEVA HOLLYWOOD GETS NOTHING BUT KEEPS ITS OPTIONS OPEN DRUG COMPANIES ALSO COME OUT LOSERS ALTHOUGH NOT QUITE SO STARKLY AS THE ENTERTAINMENT INDUSTRY PHARMACEUTICAL TARIFFS WILL BE ENDED AND PATENTS WILL GAIN 20YEAR COVERAGE WORLDWIDE BUT INDIA NIGERIA INDONESIA AND OTHER DEVELOPING COUNTRIES WITH BIG PIRATEDRUG INDUSTRIES GET 10 YEARS BEFORE THEY HAVE TO HONOR DRUG PATENTS THAT GIVES THEM ANOTHER DECADE TO STEAL FROM US DRUG COMPANIES ASSERTS HARVEY BALE SENIOR VICE PRESIDENT OF THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION THE DEVELOPING COUNTRIES CONTEND THEY NEED THAT TIME TO BUILD UP THEIR OWN INDUSTRIES THE SEMICONDUCTOR INDUSTRY CAME IN WITH BIG DEMANDS AND GOT HALF OF WHAT IT WANTED AND DECLARED VICTORY WHEN THE CLINTON ADMINISTRATION MADE ITS CONCERNS A PRIORITY CHIP MAKERS WANTED TARIFFS ELIMINATED INSTEAD EUROPE AGREED TO CONTINUE ITS PRACTICE OF NOT ASSESSING TARIFFS ON MICROPROCESSORS THE BRAINS OF A COMPUTER AND CUT TARIFFS ON MEMORY CHIPS TO ABOUT 7 FROM 14 AT THE END OF FIVE YEARS THE SEMICONDUCTOR INDUSTRY WAS CHEERED BY THE LANGUAGE ON DUMPING AND FELT THAT IT COULD GAIN FROM CONTINUED PRESSURE FOR PATENT PROTECTION THIS IS SOMETHING WE CAN WORK WITH SAYS ALAN WOLFF AN ATTORNEY FOR THE SEMICONDUCTOR INDUSTRY ASSOCIATION FOR THE TEXTILE INDUSTRY THE REVERSE WAS TRUE THE CLINTON ADMINISTRATION CAME IN WITH BIG DEMANDS BUT QUICKLY MADE TEXTILES A LOW PRIORITY IN THE FINAL PUSH TO PASS THE NAFTA PRESIDENT CLINTON PLEDGED TO SEEK A 15YEAR PHASEOUT OF AN ARCANE QUOTA SYSTEM THAT PROTECTS US TEXTILE MAKERS ONCE IN GENEVA HOWEVER THE US AGREED INSTEAD TO A 10YEAR PHASEOUT WHICH THE INDUSTRY HAS OPPOSED MR KANTOR SAYS THE US DID WIN AN IMPORTANT CONCESSION INDIA PAKISTAN AND OTHER BIG TEXTILE MAKERS WOULD HAVE TO OPEN THEIR SHUTTERED MARKETS BEFORE THEIR QUOTAS WOULD BE EXPANDED JOHN JOCK NASH COUNSEL FOR MILLIKEN & CO DUBS THE TEXTILE INDUSTRY A DONOR INDUSTRY THAT US TRADE NEGOTIATORS OFFERED UP TO GET CONCESSIONS FROM OTHER COUNTRIES BUT PRODUCERS OF FASHIONQUALITY TEXTILES WOULD BENEFIT FROM AN OPENING OF THE PAKISTANI AND INDIAN MARKETS ONE OF AMERICA'S AND EUROPE'S BIGGEST AIMS IN LAUNCHING THE GATT NEGOTIATIONS WAS TO OPEN DEVELOPING MARKETS TO THEIR HUGE SERVICE SECTORS BUT THE ARGUMENTS OVER SERVICES BECAME SO RANCOROUS THAT MANY ISSUES WERE DROPPED FROM THE TALKS TO CONCLUDE A DEAL WITH BANKS AND SECURITIES FIRMS FOR INSTANCE THE US FAILED TO MAKE MUCH HEADWAY WITH JAPAN AND KOREA BOTH MAINTAIN STRINGENT RESTRICTIONS AGAINST FOREIGN FIRMS FOR INSTANCE JAPAN BARS FOREIGN CONCERNS FROM MANY COMPETITIONS TO MANAGE PENSION FUNDS TO MOVE THE TRADE TALKS ALONG THE US AGREED TO NEGOTIATE INDIVIDUALLY WITH COUNTRIES FOR ANOTHER TWO YEARS TO WIN GREATER ACCESS IF ON JAN 1 1996 SIX MONTHS AFTER THE GATT ACCORD IS SUPPOSED TO GO INTO EFFECT THE US ISN'T SATISFIED WITH HOW CERTAIN COUNTRIES TREAT US FIRMS IT MAY BLOCK THOSE COUNTRIES' FINANCIAL COMPANIES FROM EXPANDING IN THE US IN A SIMILAR FASHION THE US AND EC COULDN'T MEET TODAY'S DEADLINE FOR DISPUTES OVER AIRCRAFT SUBSIDIES MARITIME INDUSTRIES AND TELECOMMUNICATIONS NEGOTIATIONS OVER THOSE AREAS WILL CONTINUE SEPARATELY SAYS PASCAL LAMY CHIEF OF STAFF TO EC PRESIDENT JACQUES DELORS THE LESSON IS THAT THE GATT SYSTEM CAN'T CHEW AND SWALLOW COMPLEX NOTIONS FOR YEARS AGRICULTURE WAS THE MONSTER THAT ATE GATT IN 1988 THE TALKS BROKE DOWN IN MONTREAL BECAUSE OF A USEC CLASH OVER HOW DEEPLY TO CHOP FARM SUBSIDIES IN 1990 THE NEGOTIATIONS COLLAPSED IN BRUSSELS OVER THE SAME PROBLEM LAST YEAR THE TWO SIDES REACHED AN ACCORD BUT THAT FELL APART TOO AMID FRENCH OBJECTIONS TO US WISHES FOR SUBSIDY CUTS FINALLY FRANCE WAS MOLLIFIED BY A DEAL TO EASE THE RATE AT WHICH IT WOULD HAVE TO CUT SUBSIDIES THE PACT CUTS THE VOLUME OF FARM EXPORTS RECEIVING SUBSIDIES BY 21 OVER SIX YEARS EVEN SO FRANCE AND THE EC AGREED TO SIGNIFICANT REDUCTIONS AS DID OTHER COUNTRIES EXPORTS OF SUBSIDIZED EUROPEAN WHEAT ARE DUE TO FALL TO 135 MILLION TONS FROM ABOUT 255 MILLION WHILE OTHER GRAINS FACE SMALLER REDUCTIONS ACCORDING TO AMERICAN FARM BUREAU CALCULATIONS JAPAN AND SOUTH KOREA AGREED TO OPEN THEIR CLOSED RICE MARKETS AFTER YEARS OF SAYING THEY NEVER WOULD AND IN THE US SUCH QUOTA SYSTEMS PROTECTING DAIRY PRODUCTS PEANUTS AND SUGAR WILL BE PHASED OUT AND REPLACED BY TARIFFS WE'RE NOW AT THE END OF WHAT'S BEEN A LONG AND TORTUOUS JOURNEY SAYS US AGRICULTURE SECRETARY MIKE ESPY THE US SPENT MUCH OF ITS POLITICAL CAPITAL PRESERVING ITS RIGHTS TO BLOCK IMPORTS OF LOWCOST PRODUCTS THAT THE COMMERCE DEPARTMENT JUDGES TO BE UNFAIRLY PRICED THAT IS EITHER SOLD AT PRICES BELOW THOSE CHARGED IN THE HOME COUNTRY OR AT PRICES THAT ARE LOWER THAN THE COST OF PRODUCING THE GOODS MOST OF THE REST OF THE WORLD ACCUSES THE US SYSTEM OF BEING RIGGED THE DEPARTMENT ALMOST ALWAYS FINDS IN FAVOR OF US COMPANIES SIMPLY FILING A DUMPING COMPLAINT USUALLY PROMPTS IMPORTERS TO RAISE PRICES ALTHOUGH DUMPING ACTIONS CAN BE CAPRICIOUS MANY US LAWMAKERS CONSIDER THE PROCESS SACROSANCT BECAUSE IT GIVES DOMESTIC FIRMS A WAY TO ATTACK IMPORTS GENERALLY THE US PREVAILED ON THE ISSUE NOT IN THE LEAST BECAUSE THE EC AND OTHER NATIONS ARE BEGINNING TO USE DUMPING ACTIONS NEARLY AS MUCH AS THE US AND WANT TO PRESERVE THEM TOO COUNTRY AFTER COUNTRY IS ADOPTING ANTIDUMPING LAWS INCLUDING MEXICO AND INDIA SAYS COMMERCE UNDERSECRETARY JEFFREY GARTEN THE WORLD THAT'S EMERGING WILL BE MUCH TOUGHER IN TERMS OF TRADE POLICY THE SEVEN PAINFUL YEARS IT TOOK TO COMPLETE THE URUGUAY ROUND LEAVE TRADE EXPERTS DOUBTFUL THAT THERE WILL EVER BE ANOTHER ROUND LIKE IT WHILE GATT'S SUCCESSOR ORGANIZATION THE MTO WILL CONTINUE TO BE AN ARBITER OF EXISTING TRADE AGREEMENTS ITS ROLE IN SHAPING FUTURE AGREEMENTS IS FAR LESS CERTAIN ESPECIALLY WITH THE EMERGENCE OF REGIONAL TRADING BLOCS THE WORLDTRADE BODY MAY HAVE TO FOCUS ON NARROWER ISSUES TO ACCOMPLISH ANYTHING USEFUL I WOULD BE HESITANT ABOUT ANOTHER EFFORT AS MASSIVE AS THIS SAYS CHARLES CARLISLE A FORMER SENIOR GATT OFFICIAL WHO CALLS THE CURRENT ROUND A SUCCESS BUT HE SAYS THE ORGANIZATION COULD LOOK AT INDIVIDUAL ISSUES ESPECIALLY IN SERVICES AND TRY TO MAKE THEM BETTER AND LIBERALIZE THEM FOR ONE THING THE WORLD IS CHANGING TOO RAPIDLY FOR DECADELONG TRADE NEGOTIATIONS AND NEW ISSUES ARE EMERGING WHEN THE CURRENT ROUND WAS FIRST PLANNED IN 1982 FAR FEWER DEVELOPING NATIONS WERE COMPETITIVE AND CHINA AND THE FORMER SOVIET UNION WERE CONSIDERED ADVERSARIES RATHER THAN EMERGING MARKETS IN ADDITION TRADE ISSUES HAVE BROADENED FAR BEYOND ECONOMICS SOME WANT A GREEN ROUND TO CONSIDER ENVIRONMENTAL IMPLICATIONS OF TRADE POLICIES INDUSTRIALPOLICY ADVOCATES WANT THE TRADE BODY TO LOOK AT HOW COUNTRIES SUCH AS JAPAN TARGET FOREIGN COMPETITORS DOING THINGS ON A MULTILATERAL BASIS IS INCREDIBLY IMPORTANT SAYS BOWMAN CUTTER A SENIOR ECONOMIC ADVISER TO PRESIDENT CLINTON BUT WE HAVE TO FIND ANOTHER WAY OF DOING IT ASRA Q NOMANI CONTRIBUTED TO THIS ARTICLE 9312150054 931215 TUESDAY'S MARKETS BONDS FALL TAKE STOCKS WITH THEM COMMODITIESPRICE RISE IS MAJOR FACTOR DOLLAR ENDS STRONGER BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES SKIDDED ON A SPATE OF NEGATIVE NEWS CARRYING STOCK PRICES SHARPLY LOWER TOO THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE SLID 2180 TO 374263 STANDARD & POOR'S 500STOCK INDEX FELL 264 TO 46306 AND THE NASDAQ COMPOSITE INDEX DROPPED 825 TO 75147 THE BOND MARKET CAME UNDER PRESSURE FROM SEVERAL FRONTS WITH THE CHIEF CONCERN BEING RISING COMMODITIES PRICES SAID SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP IN MINNEAPOLIS SURGING PRICES FOR A VARIETY OF COMMODITIES OIL GRAIN CORN SOYBEANS CAUSED BOND TRADERS TO WORRY ABOUT INFLATION MR SOHN SAID OTHER BOND MARKET WORRIES INCLUDED A SLIGHTLY STRONGERTHANEXPECTED REPORT ON RETAIL SALES IN NOVEMBER AND THE POWERFUL SHOWING OF RIGHTWING NATIONALISTS IN RUSSIA'S PARLIAMENTARY ELECTIONS STOCK MARKET INVESTORS USED THE WEAKNESS IN BONDS AS AN EXCUSE TO TAKE PROFITS THE SELLING BATTERED THE INDUSTRIAL AVERAGE AND HIT THE NASDAQ COMPOSITE EVEN WORSE IN A VOLATILE ENVIRONMENT SMALL STOCKS TEND TO GET BEAT UP MORE THAN BLUE CHIPS MR SOHN SAID BESIDES SMALL STOCKS HAVE DONE PRETTY WELL THROUGH OCTOBER AND THERE ARE PROFITS TO BE MADE THE RECENT OUTPERFORMANCE OF THE INDUSTRIAL AVERAGE WHICH HAS HIT NEW HIGHS IN SEVERAL SESSIONS IS HARDLY A SIGN OF MARKET STRENGTH WARNED NEIL HOKANSON PRESIDENT OF HOKANSON FINANCIAL MANAGEMENT IN ENCINITAS CALIF INDEED WHILE THE INDUSTRIAL AVERAGE HAS CLIMBED THE BROADER MARKET HAS SLUMPED AND SMALL STOCKS HAVE SKIDDED TO US IT SAYS THE DOW ISN'T A LEADER HERE HE SAID RATHER IT WILL FOLLOW THE REST OF THE MARKET MR HOKANSON DOESN'T EXPECT A MARKET DOWNTURN TO BE PRECIPITATED BY RISING INTEREST RATES OR INFLATION INSTEAD THE CATALYST WILL MORE LIKELY BE AN EXTERNAL SHOCK SUCH AS SOME BAD NEWS FROM NORTH KOREA OR RUSSIA HE SAID WE'RE DEFINITELY TAKING PROFITS HE SAID WE'VE RAISED OUR CASH LEVEL TO 15 OF OUR PORTFOLIO FROM 5 THREE MONTHS AGO WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 085 TO 10965 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2739 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1376 ISSUES FELL AND 696 ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST 3/4 POINT OR 750 FOR EACH 1000 FACE AMOUNT TO YIELD 628 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17138 MARKS AND 10935 YEN COMPARED WITH 17085 MARKS AND 10895 YEN MONDAY 9312150053 931215 BUSINESS BRIEF BAUSCH & LOMB INC COMPANY WILL LAY OFF 500 AMID WEAK SUNGLASS MARKET BAUSCH & LOMB INC CITING WEAK DEMAND FOR SUNGLASSES SAID IT WILL LAY OFF 500 WORKERS ABOUT 3 OF ITS WORK FORCE AND TAKE AN AFTERTAX CHARGE OF 27 MILLION OR 45 CENTS A SHARE AGAINST FISCAL FOURTHQUARTER EARNINGS IN THE 1992 FOURTH QUARTER ENDED DEC 26 1992 THE HEALTHCARE AND OPTICS CONCERN EARNED 517 MILLION OR 86 CENTS A SHARE ON SALES OF 4284 MILLION AS PART OF THE RESTRUCTURING BAUSCH & LOMB WILL CLOSE ITS SUNGLASS FRAME PLANT IN PFORZHEIM GERMANY THAT WILL ACCOUNT FOR 130 OF THE 500 LAYOFFS PRODUCTION WILL BE SHIFTED TO PLANTS IN ROCHESTER NY SAN ANTONIO WATERFORD IRELAND AND OTHER LOCATIONS MOST OF THE REMAINING LAYOFFS WILL COME FROM US OPERATIONS THE ROCHESTER COMPANY WILL ALSO CONSOLIDATE ITS US OPHTHALMIC PHARMACEUTICAL MANUFACTURING AT ITS NEW TAMPA FLA PLANT PRODUCTION AT A LEASED FACILITY IN HAUPPAUGE NY WILL BE DISCONTINUED IN 1994 THE COMPANY SAID BAUSCH & LOMB STOCK DROPPED 75 CENTS TO 5175 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9312150052 931215 BUSINESS BRIEF SKOLNIKS INC BAGEL MAKER POSTED LOSS FOR ITS FISCAL FIRST QUARTER SKOLNIKS INC OKLAHOMA CITY POSTED A FISCAL FIRSTQUARTER LOSS SENDING ITS ALREADYDEPRESSED STOCK FURTHER DOWN THE COMPANY WHICH MAKES BAGELS AND OPERATES A RESTAURANT CHAIN SAID IT HAD A LOSS OF 124866 OR THREE CENTS A SHARE IN THE QUARTER WHICH ENDED OCT 30 A YEAR EARLIER THE COMPANY EARNED 117052 OR FOUR CENTS A SHARE REVENUE DROPPED 13 TO 27 MILLION FROM 31 MILLION SKOLNIKS BLAMED THE LOSS ON EXPENSES ASSOCIATED WITH OPENING A BAGELBAKING PLANT IN NEW JERSEY AS WELL AS RESEARCH AND DEVELOPMENT COSTS FOR EXPANDING THE COMPANY'S DISTRIBUTION NETWORK THE COMPANY SAID ITS REVENUE DECLINE WAS CAUSED BY THE CLOSING OF SIX UNPROFITABLE RESTAURANTS SKOLNIKS STOCK WHICH TRADED ABOVE 20 A SHARE IN LATE OCTOBER YESTERDAY TUMBLED 125 TO 11875 IN NASDAQ STOCK MARKET TRADING SKOLNIKS INC'S STOCK TRADED ABOVE 20 A SHARE IN OCTOBER BEFORE A 3FOR2 STOCK SPLIT TOOK EFFECT DEC 8 AN ARTICLE YESTERDAY FAILED TO MENTION THE SPLIT INCORRECTLY INDICATING THAT THE SHARE PRICE HAD FALLEN SHARPLY SINCE OCTOBER